Loading...
HomeMy WebLinkAbout1992 CAFRCOMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF COLUMBIA HEIGHTS STATE OF MINNESOTA ' FOR THE YEAR ENDED DECEMBER 31, 1992 ' Prepared By: Finance Department CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS ' Reference Page Number L INTRODUCTORY SECTION ' Principal City Officials 3 Organizational Chart 5 Letter of Transmittal 7 Certificate of Achievement for Excellence in Financial Reporting 15 1 U. FINANCIAL SECTION Independent Auditor's Report General Purpose Financial Statements 19 Combined Balance Sheet - All Fund Types and Account Groups Statement 1 22 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All Governmental Fund Types and Expendable Trust Funds Statement 2 26 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General, Special Revenues ' and Debt Service Fund Types Statement 3 28 Combined Statement of Revenues, Expenses and Changes in ' Retained Earnings - Proprietary Fund Type Statement 4 30 Combined Statement of Cash Flows - all Proprietary Fund Types Statement 5 31 Notes to Financial Statements 33 ' Combining. Individual Fund and Account Groull Financial Statements General Fund: Balance Sheet Statement 6 69 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Statement 7 70 ' Schedule of Revenues - Budget and Actual Statement 8 72 Schedule of Expenditures - Budget and Actual Statement 9 73 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Reference Page Number Special Revenues Funds: Combining Balance Sheet Statement 10 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 11 78 Statement of Revenues, Expenditures and Changes in Statement 31 108 Fund Balance - Budget and Actual: Municipal State Aid Street Fund Statement 12 80 Cable Television Fund Statement 13 81 Paratransit Fund Statement 14 82 D.A.R.E. Program Statement 15 83 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance: Recreation Contributed Projects Statement 16 84 Contributed Projects Statement 17 85 Debt Service Funds: Combining Balance Sheet Statement 18 88 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 19 90 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: _ Special Assessment Refunding Bonds of 1987 Statement 20 92 Tax Increment Bonds Statement 21 93 Tax Increment Bonds of 1984 Statement 22 94 Tax Increment Bonds of 1987 Statement 23 95 Tax Increment Taxable Bonds of 1987 Statement 24 96 Tax Increment Capital Appreciation Bonds of 1990 Statement 25 97 Tax Increment Refunding Bonds of 1991 Statement 26 98 Capital Project Funds: Combining Balance Sheet Statement 27 100 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 28 102 Enterprise Funds: Combining Balance Sheet Statement 29 106 Combining Statement of Revenues, Expenses and Changes in Retained Earnings Statement 30 107 Combining Statement of Cash Flows Statement 31 108 Water Utility Fund: Balance Sheet Statement 32 110 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 33 111 Statement of Cash Flows Statement 34 112 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Reference Page Number Sewer Utility Fund: Balance Sheet Statement 35 113 ' Statement of Revenues, Expenses and Changes in Retained Earnings Statement 36 114 Statement of Cash Flows Statement 37 115 Refuse Utility Fund: Balance Sheet Statement 38 116 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 39 117 Statement of Cash Flows Statement 40 118 Liquor Fund: Balance Sheet Statement 41 119 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 42 120 Statement of Cash Flows Statement 43 121 Internal Service Fund: Combining Balance Sheet Statement 44 124 Combining Statement of Revenues, Expenses and Changes in ' Retained Earnings Statement 45 125 Combining Statement of Cash Flows Statement 46 126 ' Central Garage Fund: Balance Sheet Statement 47 127 Statement of Revenues, Expenses and Changes in 1 Retained Earnings Statement 48 128 Statement of Cash Flows Statement 49 129 Insurance Fund: Balance Sheet Statement 50 130 Statement of Revenues, Expenses and Changes in Retained Earrings Statement 51 131 Statement of Cash Flows Statement 52 132 Trust and Agency Funds: Fiduciary Funds: Combining Balance Sheet Statement 53 134 Expendable Trust Funds: Combining Statement of Changes in Assets and Liabilities Statement 54 135 Fiduciary Funds: ICombining Statement of Changes in Assets and Liabilities - All Agency Funds Statement 55 136 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Reference Page Number Housing and Redevelopment Authority Funds: Combining Balance Sheet Statement 56 138 Combining Statement of Revenues, Expenses and Changes in Table 2 159 Fund Balance - All Governmental Fund Types Statement 57 140 General Fixed Assets Account Group: Table 4 161 Comparative Schedule of General Fixed Assets - By Source Statement 58 142 Schedule of Changes in General Fixed Assets - By Function and Activity Statement 59 143 Schedule of General Fixed Assets - By Function and Activity Statement 60 144 General Long -Term Debt Account Group: Table 8 165 Schedule of General Long -Term Debt Statement 61 146 Schedule of Debt Service Requirements to Maturity Statement 62 147 ypnlementary Financial Information Combining Schedule of Bonds Payable Exhibit 1 150 Schedule of Sources and Uses of Public Funds For Housing and Redevelopment Authority Tax Increment Financing Districts Exhibit 2 154 Note - Sources of Funds For Housing and Redevelopment Authority Tax Increment Financing Districts Exhibit 3 155 III. STATISTICAL SECTION Assessed Value, Tax Capacity, and Estimated Actual Value of all Taxable Property (A) -1983 Through 1992 Table 1 158 Tax Rates - Years 1983 Through 1992 Table 2 159 City Tax Levy - Years 1983 Through 1992 Table 3 160 Tax Levies and Tax Collections - Years 1983 Through 1992 Table 4 161 Special Assessment Levies and Collections - Years 1983 Through 1992 Table 5 162 General Governmental Revenues By Source - Years 1983 Through 1992 Table 6 163 General Governmental Expenditures By Function - Years 1983 Through 1992 Table 7 164 Principal City Officials Table 8 165 Miscellaneous Statistics Table 9 166 CITY OF COLUMBIA HEIGHTS MINNESOTA TABLE OF CONTENTS Principal Taxpayers ' Computation of Legal Debt Margin ' Computation of Direct and Overlapping Debt Property Value, Construction and Bank Deposits - Years 1983 Through 1992 IV. SINGLE AUDIT AND OTHER REQUIRED REPORTS SECTION Independent Auditor's Report on Supplementary Information - Schedule of Federal Financial Assistance 'Schedule of Federal Financial Assistance Independent Auditor's Report on Compliance With General Requirements Applicable to Federal Financial Assistance Program Independent Auditor's Report on the Compliance with Nonmajor Federal Financial Assistance Programs Independent Auditor's Report on the Internal Control Structure in Accordance With Government Auditing Standards ' Independent Auditor's 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 Page Number Table 10 168 Table 11 169 Table 12 170 Table 13 171 175 177 179 181 183 187 193 I. INTRODUCTORY SECTION CH 2 CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS MINNESOTA PRINCIPAL CITY OFFICIALS December 31, 1992 iCITY COUNCIL Donald J. Murzyn, Jr., Mayor Gary L. Peterson Councilmember Bruce G. Nawrocki Councilmember ( Sean T. Clerkin Councilmember Robert W. Ruettimann Councilmember CITY MANAGER Stuart Anderson (Retired March 31, 1993) Patrick Hentges (Effective April 1, 1993) FINANCE DEPARTMENT William J. Elrite, Finance Director i t June V. Johnston, Assistant Finance Director 1 i I3 CH CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS ORGANIZATIONAL CHART Gary L. Peterson Bruce G. Nawrocki Sean T. Clerkin Robert W.Ruettima Police Chief David Mawhorter Secretary II Clerk- Typist II Police Captain Patrol Sergeants (4) Patrol Officers (15) Comm. Service Officers (2 FT &2PT) Ir. Records Technician Secretary II -A (2) Clerk- Typist II (PT) Fire Chief: Charles Kewatt Secretary II (PT) 3eputy Fire Chief Firefighters (6) Library Director: M. Rebecca Loader Clerk- Typist II (2) Library Supervisor (5 PT) Page (8 PT) Choreperson (PT) tdult Service Specialist ;hildren's Librarian tecreation Director: Mark Casey Clerk- Typist II (2) ienior Citizen Coordinator lead Custodian :ustodian II (2 PT) :ustodian I (2 PT) *Also serves in the capacity of Deputy City Clerk under the Finance Director /City Clerk /Treasurer. Special Projects Coc Special Assessments Accounting Clerk II Clerk- Typist II (PT) Building Inspector Asst. Building Inspector Secretary U ?finance Director /City Clerk /Treasurer: William Elrite Secretary H (PT) tssistant Finance Director Accounting Coordinator Payroll/Accounting Clerk Utilities Accounting Clerk II Utilities Accounting Clerk I Switchboard Operator /Receptionist Meter Readers (2 PT) .iquor Operations Manager Asst. Operations ,Managers (2) Retail Clerks (17 PT) Liquor Store Supervisor 'ubllc Works Director /City Engineer: Mark Winson Secretary II -A Clerk- Typist II tssistant City Engineer Engineering Technician IV Engineering Technician III Engineering Technician II 'ublic Works Superintendent Foreman (9) Maintenance M (1) Maintenance It (6) Maintenance I (9) Foreman- Vehicle Maintenance Maintenance III- Mechanic Maintenance III - Bodyman /Painter ►dmin. Assistant -Public Works Clerical /Purchasing Clerk Charter Police, Pyre & Civil Service Downtown Development Insurance Traffic Cable Communications Planning & Zoning Human Services Park Merit 5 CH CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS 590 40th Avenue N. E. Columbia Heights, MN 55421 -3878 t(612) 782 -2800 ' April 30, 1993 Mayor Donald J. Murzyn, Jr. Councilmembers Sean T. Clerkin Bruce G. Nawrocki Gary L. Peterson Robert W. Ruettimann City Manager Patrick Hentges To the Citizens of the City of Columbia Heights, Mayor, Councilmembers, and City Manager The Comprehensive Annual Financial Report of the City of Columbia Heights for the fiscal year ended December 31, 1992 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 Single Audit and 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 � i�7 CH CITY OF COLUMBIA HEIGHTS, MINNESOTA 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 State of Minnesota cut Local Government Aid (LGA) to cities due to financial deficits. The State continued to experience financial difficulties during 1992 and as a result, further cuts were made in LGA. In June 1992, local governments also were required to begin paying State sales tax on most purchases in order to help fund the State deficit. In spite of the cut in aid ' and the increased tax burden, the City Council and staff controlled expenditures and under spent the 1992 budget. As a result of their care and diligence, there was no tax increase for City property owners for the 1993 budget year. The City continues to pursue an active role in redevelopment. A Business Revolving Loan Fund loan was completed to REM Foods. As a result, the business has generated 40 full and part-time jobs in Columbia Heights. The City also participates in the first time home buyer program. These 7.15% and 7.1% 30 year term loans are assisting 18 low to moderate income families purchasing homes in Columbia Heights. Employment in the City has remained stable, and the City is promoting the expansion and creation of new business in the community. The Housing and Redevelopment Authority (HRA) staff prepared and provided City promotion packets to local banks, local businesses and businesses interested in possibly relocating to Columbia Heights. In addition, staff prepared and provided new homeowner City promotion packets to Welcome Wagon, realtors and others for new homeowners moving into Columbia Heights. Economic conditions have continued to remain stable in the City. As a result of effective financial management, the City continues to maintain a strong financial position and that trend is expected to continue. I For the Year MAJOR R41MTIVES David Mawhorter was hired as the new Chief of Police in March of 1992. With the hiring of Chief Mawhorter came the beginning of a new direction for the City's police department with the implementation of community oriented policing. With community oriented policing comes a commitment to a partnership with the citizens of Columbia Heights. Some aspects of the community oriented police program that were implemented in 1992 include a police/school liaison officer, a community oriented police officer for Hilltop and for Grid 8 and the Police Chief s forum. During 1992, City personnel, with the assistance of community volunteers, completed an 1890's theme skating rink at Huset Park. This project was the result of many hours of hard work by all involved. The citizens of Columbia Heights now have a unique skating rink that will be enjoyed by residents of all ages for years to come. 6 In the Spring of 1992, a volunteer coordinator was hired in the Recreation Department. The hiring of a volunteer coordinator began the development of a volunteer program in the City. From May to December staff was interviewed to gather information on current volunteer positions and to identify the need for additional positions. Volunteers are currently involved in: City Beautification Project; microfilming, ordinance searches and other office functions; development of business survey for HRA; etc. ffevmilt .s With future cuts in State Aid anticipated, City personnel are concentrating on maximizing available resources and expanding on profitable enterprises. One such expansion is planned for the liquor operations. A third liquor store will be opened at 37th and Stinson by the City in 1993. Over the years the City's liquor operation has been profitable and contributed hundreds of thousands of dollars for City vehicles and equipment. It is anticipated that profits will continue to grow with this expansion. The volunteer program will continue development in the future. This program should enable the City to undertake projects with volunteers that would otherwise not be done. Volunteers should also enhance the performance of City staff. During 1993, the City Finance Department will undertake the accounting functions for the BRA that were previously handled by an outside accounting service. This change should result in more uniformity and a savings of approximately $20,000 for City residents. General Government Functions Revenues for City general government functions (General, Special Revenue, Debt Service and Capital Project Funds) during 1992 totaled $9,786,762, which is an increase of 4.5% from 1991. Property taxes received for the City produced 36% of general revenues compared to 37% last year. The amount of revenues from various sources of their changes from last year are shown below: Amount of Increase Percent (Decrease) Revenue Source Amount of Total from 1991 Taxes Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest Other revenue Total revenues 1111 $3,496,720 315,014 125,275 3,504,973 442,636 104,673 803,393 994,358 36% 3% 1% 36% 5% 1% 8% 10% $22,237 (143,530) (39,670) 255,304 18,090 (11,713) 85,368 239,865 $9,787,042 100C/0 $425195 Tax revenue increased due to an increase in the levy to compensate for the loss of a portion of local government aid. Intergovernmental revenue increased due to an unexpected distribution of funds by the State of Minnesota. Since this was most likely a one -time distribution, the funds were designated for the 1993 budget and as a result there was no increase in the City property tax levy for 1993. The expenditures for City general government functions for 1992 totaled $9,489,600, a decrease of 27.4% from 1991. The total expenditures for major City functions and their changes from last year are shown below: Amount of Increase Percent (Deane) Expenditure Function Amount of Total from 1991 General government $1,356,795 14% $71,413 Public safety 2,563,788 27% 25,573 Public works 819,300 9% (71,833) Sanitation 176,216 2% 68,108 Parks and recreation 1,044,021 11% 89,785 Library 383,933 4% (6,318) Other & contingencies 259,283 3% (4,450) Capital outlay 613,462 6% (2,077,679) Debt service 2,272,802 24% (1,677,881) Total expenditures $9,489,600 100% $3,5832&?) The decreases in capital outlay and debt service respectively were due to the completion of the major portion of the senior housing project ($1.7 million) in 1991 and to $1.8 million paid from escrow in 1991 for refunding of a bond issue. Increases in sanitation, parks and recreation were due to higher incidences of Dutch elm disease and program expansion. General Fund Balance The fund balance of the General Fund decreased by 3.6 %. The decrease in fund balance was due to the fact that the City Council established funds for Infrastructure Replacement and compensated absences during the year and transferred $300,000 and $100,000 respectively to these funds. If these transfers had not be made, there would have been an increase to fund balance of 9.6% or $292,771. The total fund balance of $2,925,866 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. l nt=rise 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 $4,822,423 in 1992. This resulted in a total net operating income of $347,646, a slight decrease from 1991. Liquor operations will be expanding to three stores in 1993 and growth and profitability are expected to continue. 11 Water, Sewer and Refuse Utilities all experienced operating income increases during 1992. Operating incomes of $244,635 and $20,778 in the Water and Sewer Funds were the result of substantial rate increases in these areas. This was the first rate increase for Columbia Heights residents in this area since 1982. The Refuse Utility experienced an operating income of $160,865 during 1992, an increase of $29,424 over 1991. During the year, the City Council designated funds from the Sewer and Water Utilities for capital equipment replacement and construction. 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 1992, 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 are used to account for assets held by the City in an agency capacity for individuals, private organizations, other governments, or other funds. The City has Agency Funds for deferred compensation, permit surcharge, and escrow. Trust Funds are used to account for assets held by the City in a trustee capacity. The City has expendable trust funds for compensated absences and flex benefits. 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 6.48 %. 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 At December 31, 1992, the City had a number of debt issues outstanding. These issues included $18,149,721 of General Obligation Tax Increment Bonds and $910,000 of Permanent Improvement Special Assessment Debt with City commitment. The City issued $6,670,000 General Obligation Tax Increment Refunding Bonds in 1991 to refund the Tax Increment Refunding Bonds of 1987. Bond proceeds were placed in an escrow account until the call date, March 1, 1994. 12 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 1992, the City settled a bodily injury claim due to alleged excessive force by police personnel for $24,000. There were no significant claims pending at year end. OTHER INFORMATION State Statutes require an annual audit by independent certified public accountants. The accounting firm of Tautges, Redpath & Co., Ltd. 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. i� 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, 1991. 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. 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. We would like to express special appreciation to Gary Braaten, Accounting Coordinator for all of his hard work and assistance. In closing, without the leadership and support of the City Manager and City Council, preparation of this report would not have been possible. Sincerely, �ZK William J. E 'te Finance Director L June V. Johnston Assistant Finance Director 13 CH 14 CITY OF COLUMBIA HEIGHTS, MINNESOTA 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, 1991 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 (CAFRs) achieve the highest standards in government accounting and financial reporting. �pNGE OfpjC OF UNITED STATES y AND N GNA01 6��;President CWWMW SELL s Y/ v Executive Director 15 CITY OF COLUMBIA HEIGHTS, MINNESOTA J I� 16 1 II. FINANCIAL SECTION 17 CH 18 CITY OF COLUMBIA HEIGHTS, MINNESOTA *TA ES, W EON 6 H & CO., L T®. CERTIFIED PUBLIC ACCOUNTANTS IINDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of 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, 1992 as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these 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 financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall 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, as of December 31, 1992, and the results of its ' operations and its cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund, account group financial statements, supporting schedules and statistical information in the table of contents is presented for purposes of additional analysis and is not a required part of the financial statements of the City of Columbia Heights, Minnesota. Such information, except for that portion marked "unaudited ", on which we express no opinion, 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. April 6, 1993 TAUTGES, REDPATH k CO., LTD. Certified Public Accountants 19 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH CITY OF COLUMBIA HEIGHTS, MINNESOTA I 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. 21 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1992 With Primary Government Comparative Totals For December 31, 1991 Assets Cash and cash equivalents Temporary investments Cash and investments held in escrow Receivables: Accounts Special assessments Taxes Interest Loans Due from other governmental units Due from other funds Due from primary government Due from component unit Prepaid expense Assets held by deferred compensation trustees Inventory, at cost Fixed assets, net of accumulated depreciation 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 $3,297,631 $1,661,023 $9,538,734 $5,002,114 $9,114,236 $1,071,497 22 The accompanying notes are an integral part of these financial statements. Proprietary Governmental Fund Types Fund Types Special Debt Capital Internal General Revenue Service Project Enterprise Service $3,072,563 $ - $ - $ - $883,842 $567,787 - 451,823 2,350,477 4,499528 2,941,435 - - 433,966 6,526,149 - - - 12,451 32,806 - 12,210 779,343 52 - 561,631 58,287 434,192 - - 141,101 - 580,860 - - - 18,145 2,531 21,322 31,576 32,147 4,023 49,224 73,24() - - 168,997 - 105,026 - - - - 3,827 - 1,639 24,608 - - 320 - - - 55,910 65,999 - - - - 406,765 85,886 - - - - 3,845,797 347,750 $3,297,631 $1,661,023 $9,538,734 $5,002,114 $9,114,236 $1,071,497 22 The accompanying notes are an integral part of these financial statements. Statement 1 Page 1 of 2 The accompanying notes are an integral part of these financial statements. 23 Totals Component (Memorandum Fiduciary Totals Unit Only) Fund Type Account Groups (Memorandum Only) Housing and Reporting Trust and General General Long- Primary Government Redevelopment Entity Agency Fixed Assets Term Debt 1992 1991 Authority 1992 $112,789 $ - $ - $4,636,981 $3,650,889 $747,484 $5,384,465 - - - 10,243,263 10,170,581 - 10,243,263 - - - 6,960,115 6,543,268 - 6,960,115 318 - - 837,180 734,877 5,066 842,246 - - - 1,054,110 1,235,918 - 1,054,110 - - - 721,961 496,982 3,362 725,323 - - - 109,744 92,903 264 110,008 - - - - - 410,106 410,106 291,461 511,472 61,032 352,493 - - - 105,026 242,093 68,663 173,689 - - - - - 4,466 4,466 - - - 30,074 11,665 - 30,074 - - - 122,229 121,805 7,849 130,078 1,195,530 - - 1,195,530 940,934 172,111 1,367,641 - - - 492,651 568,500 - 492,651 - 11,923,785 - 16,117,332 16,316,963 5,066,689 21,184,021 - - - - - 89,966 89,966 - - 8,916,964 8,916,964 9,603,694 - 8,916,964 - - 10,502,247 10,502,247 10,811,471 - 10,502,247 - - 343,397 343,397 329,244 9,590 352,987 - - 15,982 15,982 16,609 - 15,982 $1,308,637 $11,923,785 $19, 778, 590 $ 62,696,247 $62,399,868 $6,646,648 $69,342,895 The accompanying notes are an integral part of these financial statements. 23 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINED BALANCE SHEET- , ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1992 With Primary Government Comparative Totals For December 31, 1991 ' Proprietary , Governmental Fund Types Fund Types Special Debt Capital Internal General Revenue Service Project Enterprise Service , Liabilities, equity and other credits Liabilities: - - - - 1,563,879 188,849 Accounts payable $63,536 $12,473 $ - $68,616 $203,188 $12,755 Contracts payable, retained percentage - 4,477 - 494 595 - Notes payable - - _ _ _ _ Accrued salaries and withholdings payable 104,520 640 - 1,363 65,596 15,191 Deferred compensation payable - - - - _ _ Due to other governmental units 66,829 - - - 54,591 - Due to other funds - 105,026 - - - - Due to primary government - - - Due to component unit 4,075 - 391 - - - Deferred revenue 132,805 594,989 628,000 431,904 - - Bonds payable - - _ - Accrued interest payable - - 5,202 - - - Deposits _ _ - Insurance and taxes in escrow Compensated absences payable Other liabilities _ _ _ Total liabilities 371,765 717,605 633,593 502,377 323,970 27,946 Equity and other credits: Contributed capital - - - - 1,563,879 188,849 Investment in general fixed assets - _ _ _ - Retained earnings: Reserved - - - - 2,577,320 639,904 ' Unreserved - - - - 4,649,067 214,798 Fund balance (deficit): Reserved 320 433,966 - - _ _ Unreserved: Designated 2,925,546 750 8,905,141 - Undesignated - 508,702 - 4,499,737 Total equity and other credits 2,925,866 943,418 8,905,141 4,499,737 8,790,266 1,043,551 Total liabilities, equity and other credits $3,297,631 $1,661,023 $9,538,734 $5,002,114 $9,114236 $1,071,497 24 The accompanying notes are an integral part of these financial statements. I Statement 1 Page 2 of 2 434,286 95,366 332,100 766,386 100,000 - - 11,931,437 13,073,504 23,540 11,954,977 Totals - 5,006,069 3,518,309 349,988 5,356,057 Component (Memorandum Fiduciary 5,772,317 Totals $1,308,637 $11,923,785 Unit Only) Fund Type Account Groups (Memorandum Only) Housing and Reporting Trust and General General Long- Primary Government Redevelopment Entity Agency Fixed Assets Term Debt 1992 1991 Authority 1992 $2,370 $ - $ - $362,938 $441,007 $41,269 $404,207 5,566 15,517 5,566 - - 15,982 15,982 16,609 - 15,982 ' - - 187,310 150,270 7,252 194,562 1,195,530 = 1,195,530 940,934 172,111 1,367,641 - - - 121,420 51,835 34,034 155,454 105,026 242,093 68,663 173,689 = = 30,074 30,074 - - - 4,466 6,303 - 4,466 - 1,787,698 1,667,441 425,586 2,213,284 ' = 19,059,721 19,059,721 20,415,165 19,059,721 - - 359,490 364,692 57,943 - 364,692 10,475 - 10,475 6,632 10,265 20,740 - 6,634 6,634 - - 343,397 343,397 329,244 9,590 352,987 2,632 - - 2,632 4,470 68,853 71,485 1,211,007 0 19,778,590 23,566,853 24,345,463 874,331 24,441,184 - - - 1,752,728 1,817,958 - 1,752,728 - 11,923,785 - 11,923,785 12,355,567 5,066,990,474 6,689 1 ' - - - 3,217,224 3,529,414 - 3,217,224 - - - 4,863,865 3,664,287 - 4,863,865 434,286 95,366 332,100 766,386 100,000 - - 11,931,437 13,073,504 23,540 11,954,977 ' (2,370) - - 5,006,069 3,518,309 349,988 5,356,057 97,630 11,923,785 0 39,129,394 38,054,405 5,772,317 44,901,711 $1,308,637 $11,923,785 $19,778,590 $62,696,247 $62,399,868 $6,646,648 $69,342,895 IThe accompanying notes are an integral part of these financial statements. 25 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND ' CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS For The Year Ended December 31, 1992 With Primary Government Comparative Totals For The Year Ended December 31, 1991 Revenues: Taxes Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeits 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 Revenues over (under) expenditures Other financing sources (uses): Bond proceeds Operating transfers in Operating transfers out Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 Governmental Fund Types ' Special General Revenue $2,388,718 $ - - 95,366 125,275 - 3,238,950 266,023 349,875 92,761 104,673 - 136,814 19,970 19,599 566,674 6,363,904 1,040,794 1,356,795 - 2,563,788 - 819,300 - 176,216 - 998,970 45,051 383,933 - - 238,709 18,204 - - 140,966 6,317,206 424,726 46,698 616,068 493,439 110,669 (647,366) (56,302) (153,927) 54,367 (107,229) 670,435 3,033,095 272,983 $2,925,866 $943,418 26 The accompanying notes are an integral part of these financial statements. Statement 2 (698,553) 335,599 (2,370) 297,442 (3,711,791) (40,912) 256,530 I- - - - 6,670,000 - - 1,593,410 443,863 100,000 2,741,381 4,195,560 Totals 2,741,381 (1,593,410) (57,132) - (2,354,210) Component (Memorandum (2,354,210) i 0 Fiduciary 100,000 387,171 Unit Only) 387,171 ' (698,553) Fund Type Totals (Memorandum Only) Housing and Reporting Debt Capital Expendable Primary Government Redevelopment Entity Service Project Trust 1992 1991 Authority 1992 $1,108,002 $ - $ - $3,496,720 $3,474,483 $58,723 $3,555,443 ' 51,814 167,834 315,014 458,544 315,014 125,275 164,945 125,275 - - - 3,504,973 3,249,669 253,295 3,758,268 - 442,636 424,546 442,636 104,673 116,386 104,673 405,691 240,918 - 803,393 718,025 55,141 858,534 8,742 399,343 - 994,358 754,493 530,157 1,524,515 1,574,249 808,095 0 9,787,042 9,361,091 897,316 10,684,358 - - - 1,356,795 1,285,382 - 1,356,795 = = 2,563,788 2,538,215 - 2,563,788 ' 819,300 891,133 819,300 - - - 176,216 108,108 - 176,216 - - - 1,044,021 954,236 - 1,044,021 ' - 383,933 390,251 - 383,933 2,370 241,079 259,930 921,257 1,162,336 - - - 18,204 3,803 - 18,204 - 472,496 613,462 2,691,141 16,971 630,433 2,272,802 2,272,802 3,950,683 - 2,272,802 2,272,802 472,496 2,370 9,489,600 13,072,882 938,228 10,427,828 (698,553) 335,599 (2,370) 297,442 (3,711,791) (40,912) 256,530 I- - - - 6,670,000 - - 1,593,410 443,863 100,000 2,741,381 4,195,560 - 2,741,381 (1,593,410) (57,132) - (2,354,210) (3,856,719) - (2,354,210) i 0 386,731 100,000 387,171 7,008,841 0 387,171 ' (698,553) 722,330 97,630 684,613 3,297,050 (40,912) 643,701 9,603,694 3,777,407 - 16,687,179 13,390,129 746,540 17,433,719 $8,905,141 $4,499,737 $97,630 $17,371,792 $16,687,179 $705,628 $18,077,420 The accompanying notes are an integral part of these financial statements. 27 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL, SPECIAL REVENUE AND DEBT SERVICE FUND TYPES For The Year Ended December 31, 1992 Expenditures: General Special Revenues Current: Over Over General government 1,439,238 (Under) (82,443) - (Under) - Budget Actual Budget Budget Actual Budget Revenues: Public works 899,929 819,300 (80,629) - - Taxes $2,418,914 $2,388,718 ($30,196) $ - $ - $ - Special assessments - - 998,970 (76,336) - - Licenses and permits 152,450 125,275 (27,175) - - - Intergovernmental 3,020,274 3,238,950 218,676 326,153 252,690 (73,463) Charges for services 337,515 349,875 12,360 87,662 90,916 3,254 Fines and forfeits 120,850 104,673 (16,177) - - - Interest 120,000 136,814 16,814 8,500 16,366 7,866 Other revenues 30,250 19,599 10,651 26,533 71,920 45,387 Total Revenues 6,200,253 6,363,904 163,651 448,848 431,892 (16,956) Expenditures: Current: General government 1,439,238 1,356,795 (82,443) - - - Public safety 2,620,458 2,563,788 (56,670) - - - Public works 899,929 819,300 (80,629) - - - Sanitation 137,515 176,216 38,701 - - - Parks and recreation 1,075,306 998,970 (76,336) - - - Library 396,390 383,933 (12,457) - - - Other - - - 263,659 215,632 (48,027) Contingencies 104,200 18,204 (85,996) - - - Total current expenditures 6,673,036 6,317,206 (355,830) 263,659 215,632 (48,027) Capital outlay - - - 411,340 132,646 (278,694) Debt service _ _ Total expenditures 6,673,036 6,317,206 (355,830) 674,999 348,278 326,721 Revenues over (under) expenditures 472,783 46,698 519,481 226,151 83,614 309,765 Other financing sources (uses): Operating transfers in 507,616 493,439 (14,177) 12,000 15,303 3,303 Operating transfers out 452,000 (647,366) 195,366 2( 25,349) (56,302) 169,047 Total other financing sources (uses) 55,616 153,927 (209,543) 213,349 (40,999) 172,350 Net increase (decrease) in fund balance ($417,167) (107,229) $309,938 ($439,500) 42,615 $482,115 Fund balance - January 1 3,033,095 226,979 Fund balance - December 31 $2,925,866 $269,594 28 The accompanying notes are an integral part of these financial statements. Budget $1,060,000 42,940 434,933 4,500 1,542,373 r 2,279,433 2,279,433 (737,060) 1,598,410 (1,596,910) 1,500 ($735,560) Totals (Memorandum Only) Debt Service Fund 1992 Actual $1,108,002 51,814 405,691 8,742 1,574,249 0 2,272,802 2,272,802 (698,553) 1,593,410 (1,593,410) 0 (698,553) 9,603,694 $8,905,141 Over (Under) Budget $48,002 8,874 (29,242) 4,242 31,876 0 (6,631) (6,631) 38,507 (5,000) 3,500 (1,500) $37,007 Budget $3,478,914 42,940 152,450 3,346,427 425,177 120,850 563,433 61,283 8,191,474 1,439,238 2,620,458 899,929 137,515 1,075,306 396,390 263,659 104,200 6,936,695 411,340 2,279,433 9,627,468 (1,435,994) 2,118,026 (2,274,259) (156,233) ($1,592,227) Actual $3,496,720 51,814 125,275 3,491,640 440,791 104,673 558,871 100,261 8,370,045 1,356,795 2,563,788 819,300 176,216 998,970 383,933 215,632 18,204 6,532,838 132,646 2,272,802 8,938,286 (568,241) 2,102,152 (2,297,078) (194,926) (763,167) 12,863,768 $12,100,601 The accompanying notes are an integral part of these financial statements. Statement 3 Over (under) Budget $17,806 8,874 (27,175) 145,213 15,614 (16,177) (4,562) 38,978 178,571 (82,443) (56,670) (80,629) 38,701 (76,336) (12,457) (48.027) (85,996) (403,857) (278,694) (6,631) (689,182) 867,753 (15,874) (22,819) (38,693) $829,060 29 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENSES AND Statement 4 CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPES For The Year Ended December 31, 1992 With Comparative Totals For The Year Ended December 31, 1991 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 Net income from operations Other revenues (expenses): Interest income Miscellaneous revenues Miscellaneous expenses Net other revenues (expenses) Net income before operating transfers Operating transfers: Operating transfers in Operating transfers out Total operating transfers Net income Credit for depreciation on contributed assets Net increase in retained earnings Retained earnings - January 1 Retained earnings - December 31 30 The accompanying notes are an integral part of these financial statements. Internal Totals Enterprise Service (Memorandum Only) ' Funds Funds 1992 1991 $2,543,180 $272,712 $2,815,892 $2,610,891 , 5,995,973 52,111 6,048,084 5,627,522 29,856 - 29,856 50,458 8,569,009 324,823 8,893,832 8,288,871 ' 5,247,275 243,021 5,490,296 5,225,254 2,319,187 52,453 2,371,640 2,571,842 228,623 29,071 257,694 272,483 7,795,085 324,545 8,119,630 8,069,579 ' 773,924 278 774,202 219,292 246,848 31,512 278,360 285,486 44,633 117,202 161,835 32,096 (5,067) - (5,067) (1,818) ' 286,414 148,714 435,128 315,764 1,060,338 148,992 1,209,330 535,056 , 754,394 4,000 758,394 260,078 , (1,141,565) (4,000) (1,145,565) (598,919) (387,171) 0 (387,171) (338,841) 673,167 148,992 822,159 196,215 65,229 - 65,229 65,229 738,396 148,992 887,388 261,444 6,487,991 705,710 7,193,701 6,932,257 $7,226,387 $854,702 $8,081,089 $7,193,701 ■ 30 The accompanying notes are an integral part of these financial statements. CITY OF COLUMBIA HEIGHTS, MINNESOTA 'COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES For The Year Ended December 31, 1992 With Comparative Totals For The Year Ended December 31, 1991 Cash flows from operating activities: Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues Miscellaneous expenses Net cash flows from operating activities Cash flows from noncapital financing activities: Operating transfers in from other funds Operating transfers (out) to other funds Net cash from noncapital financing activities Cash flows from capital and related financing activities: Acquisition of fixed assets Disposition of fixed assets Net cash flows from capital and related financing activities Cash flows from investing activities: Purchase of investments Proceeds from sale and maturity of investments Interest earned on investments Net cash from investing activities Net increase in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income to net cash provided (used) by operating activities: Operating income Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Miscellaneous revenues Miscellaneous expenses Depreciation expense Changes in assets and liabilities: Accounts receivable Due from other governmental units Inventory, at cost Prepaid expenses Accounts payable Accrued salaries and withholdings payable Due to other governmental units Total adjustments Net cash flows from operating activities Statement 5 Internal Totals Enterprise Service (Memorandum Only) Funds Funds 1992 1991 $8,470,231 $328,274 $8,798,505 $8,309,377 (6,892,212) (189,126) (7,081,338) (7,063,733) (592,752) (124,103) (716,855) (731,173) 44,633 117,202 161,835 32,096 (5,067) - (5,067) (1,818) 1,024,833 132,247 1,157,080 544,749 4,000 4,000 42,800 (387,171) (4,000) (391,171) (381,641) (387,171) 0 (387,171) (338,841) (466,243) (26,673) (492,916) (243,943) 1,505 - 1,505 - (464,738) (26,673) (491,411) (243,943) (97,986) 3,451 (94,535) (29,809) (731,977) - (731,977) (155,052) 835,969 331,191 1,167,160 - 239,771 30,755 270,526 376,138 343,763 361,946 705,709 221,086 516,687 467,520 984,207 183,051 367,155 100,267 467,422 284,371 $883,842 $567,787 $1,451,629 $467,422 $1,024,833 $132,247 $1,157,080 $544,749 $773,924 $278 $774,202 $219,292 44,633 117,202 161,835 32,096 (5,067) 29,071 24,004 (1,818) 228,623 - 228,623 272,483 (97,986) 3,451 (94,535) (29,809) 53,315 53,315 51,107 911 (5,366) (4,455) (45,120) 81,215 (1,074) 80,141 582 (67,970) (4,477) (72,447) 39,402 8,220 (6,838) 1,382 9,787 5,015 - 5,015 (3,253) 250,909 131,969 382,878 325,457 $1,024,833 $132,247 $1,157,080 $544,749 The accompanying notes are an integral part of these financial statements. 31 CH 32 CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA ' NOTES TO FINANCIAL STATEMENTS December 31, 1992 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 Manager, who is appointed by the Council, is responsible for the proper administration of all 1 affairs relating to the City. The financial reporting policies of the City conform to generally accepted accounting principles. The following is a summary of the significant policies. A. FINANCIAL REPORTING ENTITY In accordance with the Codification of Govemmental Accounting and Reporting Standards, Section 2100, "Defining the Reporting Entity," for the 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 (HRA) authority and 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 ' Six Cities supported through their own tax levy authority granted by the Minnesota Statutes. jIndependent School District School districts are totally independent No. 13 of all other governing jurisdictions according to Minnesota Statutes. They are governed by their own elected authorities and are supported through their own tax levy authority. 33 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 Excluded Entity Police and Fire Department Relief Association Reason for Exclusion The Associations are funded in accordance with 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 of 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. GOVERNMENTAL FUNDS TYPE 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. 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. 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. 34 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 Capital Prgiect Funds - Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major facilities, other than those financed by Proprietary Funds. PROPRIETARY FUNDS TYPES 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. 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. FIDUCIARY FUNDS Agency Funds - Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, other governmental units, or other funds. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Trust Funds - Trust Funds are used to account for assets held by the City in a trustee capacity. ACCOUNT GROUPS General Fixed Assets Account Group - This account group is used to account for all of the fixed assets of the Governmental Fund Types. General Long -Term Debt Account GrouK - This account group is used to account for all of the City's long -term obligations, other than those liabilities of Proprietary Fund Types. 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. 35 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 D. BUDGETARY DATA The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing on January 1 of the following year. At least one special Council meeting is conducted to obtain public comments as required by the State Truth in Taxation Law. The City Council annually adopts budgets prior to January 1 for the General, 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. Formal budgetary integration is employed as a management control device during the year. Budget revisions between functions or activities may be made by the City Manager. Budget revisions at the fund level are authorized by the City Council in accordance with the City Charter at the request of the City Manager. The legal level of budgetary control is therefore at the fund level. The City does not use encumbrance accounting. Amounts shown in the financial statements represent the original budgeted amounts and the following increases (decreases) in appropriations: General Fund ($108,082) Special Revenue Funds: Municipal State Aid: State Aid Maintenance (5,722) State Aid Construction 446,992 Cable Television 13,475 Paratransit 31,717 D.A.R.E. Prgoram 4,500 Debt Service Funds 40,783 Totals $423,663 36 CITY OF COLUMBIA HEIGHTS MINNESOTA NOTES TO FINANCIAL STATEMENTS 1 December 31, 1992 ' The City did not budget for all S pec ial Revenue 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 follows: Total Other Fund Balance Financing Fund Balance December 31, Total Total Sources December 31, Fund 1991 Revenues Expenditures (Uses) 1992 Special Revenue Funds: Budgeted funds $226,979 $431,892 $348,278 ($40,999) $269,594 Unbudgeted funds: Community Police - 15,000 19,706 - (4,706) Project Pride = 5,730 1,641 - 4,089 Parking Ramp 98,454 95,366 193,820 Recreation Contributed Projects 42,091 24,889 46,929 - 20,051 Contributed Projects 3,913 19,040 8,172 - 14,781 Housing Mortgage - 445,789 - - 445,789 Total Special Revenue Funds $272,983 $1,040,794 $424.726 $14j.367? $943,418 E. ASSETS, LIABILITIES, AND FUND EQUITY ACCOUNTS 'ASSETS 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. =ial Assessments Receivable - Special assessments represent the financing for public improvements paid for by benefiting 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). Inv - Inventories are valued at cost, which approximates market, using the first -in, fast -out basis. Fixed Assets General Fixed Assets Account Grou n - 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 account records. No depreciation has been provided on general fixed assets. 37 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 RmgLnMa Fund T - 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. 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 -Tenn 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. FUND EOI = 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 speck 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 REVENUES PropMy 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. 38 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 I 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 1 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 intergovernmental 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. Intergovernmental Revenues - Intergovernmental revenues are reported using the guidelines of legal and contractual requirements of the individual programs. 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. 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. 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 an original 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. 39 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 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 and 1992 financial data of the City's Housing and Redevelopment Authority (BRA) was 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. Note 2 DEPOSITS 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. DEPOSITS In accordance with 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). 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, 1992, including checking accounts, savings accounts, and certificates of deposit are as follows: City HRA Total Bank balance $2,101,546 $775,537 $2,877,083 Carrying amount $1,816,197 $747,409 $2,563,606 At December 31, 1992, 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. 40 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 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 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. Investment balances at December 31, 1992 are as follows: Credit Risk Category Carrying Market 1 2 3 Value Value I U.S. Government Securities (including securities insured by the U.S. Government) $8,703,263 $ - $ - $8,703,263 $8,743,110 Government money market mutual funds 4,355,484 4,344,331 Total investments $13,058,747 $13,087,441 SUMMARY OF CASH AND INVESTMENTS Cash and temporary investments at December 31, 1992 are summarized as follows: 41 City HRA Total Deposits $1,816,197 $747,409 $2,563,606 Cash on hand 5,300 75 5,375 Investments 13,058,747 - 13,058,747 Total cash and temporary investments $14,880,244 $747,484 $15,627,728 Assets held by deferred compensation trustees (recognized at market value) $1,195,530 $172,111 $1,367,641 41 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 Note 3 LEGAL COMPL.IANC /B D . T4 Total actual expenditures did not exceed budgeted expenditures (appropriations) in any funds. Note 4 INTERGOVERNMENTAL RECEIVABL1 S Intergovernmental receivables at December 31, 1992 presented as due from other governmental units are composed of the following: City: 7,210 General Fund: 53,822 Independent School District #13 $17,662 Met Council 30 Anoka County 26,574 City of Hilltop 4,958 Total General Fund 49,224 Special Revenue Funds: Community Police: City of Hilltop 1,667 State of Minnesota 30,000 Municipal State Aid - State of Minnesota 37,568 Cable Television - City of Hilltop 3,370 Paratransit - City of Fridley 635 Total Special Revenue Funds 73,240 Enterprise Funds: Sewer - M.W.C.C. 154,516 Refuse - Anoka County 12,916 Liquor - State of Minnesota 1,565 Total Enterprise Funds 168,997 Total City 291,461 HRA: Metropolitan Council 7,210 Anoka County CDBG 53,822 Total HRA 61,032 Total Intergovernmental Receivables $352,493 42 I CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 l A. PROPRIETARY FUNDS CONTRACT RECEIVABLE AND DEFERRED RECEIVABLE INTERCEPTOR ACQUISITION CONTRACT PAYABLE As of January 1, 1971, the Metropolitan Waste Control Commission (MWCC) assumed ownership of all existing inceptors and treatment works. Under the terms of the agreement with MWCC, 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 MWCC and was determined to be $400,533 at the date of takeover by the MWCC. This amount is being amortized through credits received against annual sewer billings from MWCC over a 30 -year period with interest at 4 %. As of December 31, 1992, a balance of $154,516 remained to be collected over the next eleven years This receivable is presented as Due From Other Governmental Units in the Sewer Utility Fund. DEFERRED RECEIVABLE The City was required to advance funds to the MWCC for deferments of reserve capacity costs granted to other communities. The balance of this receivable from MWCC at December 31, 1992 was $4,566 and is collectible over the next six years. Note 5 LOANS RECEIVABLE Loans receivable for the Housing and Redevelopment Authority consists of the following: HRA General Fund Home Improvement Loans $8,043 Mortgage Loans 221,855 Anoka County Community Action Program (ACCAP) Loans 180,208 $410,106 These loans relate primarily to personal residences of lower income individuals under a Community Development Program. Note 6 INTERFUND RECEIVABLES AND PAYABI FS jIndividual fund interfund receivables and payables at December 31, 1992 consist of the following: Interfund Interfund Receivables Payables Special Revenue Funds: Community Police $ - $9,706 Municipal State Aid - 95,320 Cable Television 105,026 - Total Special Revenue Funds $105,026 $105,026 43 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 OPERATING TRANSFERS From To Amount Purpose Tax Increment Bonds Tax Increment Bonds of 1987A Tax Increment Bonds Tax Increment Bonds of 1987 General DARE Project $2,000 Fund DARE Program General Paratransit 10,000 Fund City portion expense General Capital Equipment Replacement 140,000 Replacement Fixed Assets General Infrastructure Replacement 300,000 Replace infrastructure Central Garage Central Garage Equipment Replacement Account Tax Increment Bonds Tax Increment Bonds of 1984 Tax Increment Bonds Tax Increment Bonds of 1991A Tax Increment Bonds Tax Increment Bonds of 1987A Tax Increment Bonds Tax Increment Bonds of 1987 Tax Increment Bonds Capital Appreciation Bonds of 1990 Capital Improvement Projects Capital Improvement Water Capital Replacement General Account Water Utility Water Utility Water Capital Equipment Replacement Account Water Capital Equipment Replacement Account Water Utility Sewer Capital Construction Account Sewer Utility Sewer Utility Sewer Capital Equipment Replacement Account Sewer Capital Equipment Replacement Sewer Utility Capital Improvement Projects General Cable Television General Paratransit General Liquor Utility General Water Utility General Refuse Utility General Liquor Utility General Sewer Utility General General Compensated Absences General Parking Ramp State Aid Maintenance State Aid Construction Total operating transfers LI. 4,000 Garage building improvements 169,831 Debt service 250 Debt service 11210,291 Debt service 212,471 Debt service 567 Debt service 3,863 Close projects 167,038 Fund projects 15,000 Replacement fixed assets 24,037 Infrastructure replacement 395,082 Fund projects 25,000 Replacement fixed assets 128,237 Equipment replacement 53,269 Administrative labor 45,989 Administrative labor 7,010 Administrative labor 53,249 Administrative labor 51,835 Administrative labor 81,371 Administrative labor 148,881 Replacement fixed assets 51,835 Administrative labor 100,000 Reserve for compensated absences 95,366 Dedicate funds 3,303 Fund projects $3,499,775 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 Note 8 FIXED ASSETS The following is a summary of changes in the General Fixed Assets Account Group during the fiscal year: Water Balance Refuse 257,694 Balance Internal January 1, Net fixed assets Utility December 31, City 1992 Additions Retirements 1992 Iand $3,132,099 $ - $= $3,132,099 Buildings 3,013,217 19,058 Buildings 3,032,275 Improvements other than buildings 1,364,692 75,793 - 1,440,485 Machinery and equipment 3,881,445 249,502 60,888 4,070,059 Construction in process 964,114 443,470 1,158,717 248,867 Total City general fixed assets $12,355,567 $787,823 $1,219,605 $11,923,785 99,384 Balance Construction in process 14.587 Balance - January 1, _ 74.297 December 31, HRA 1_ 992 Additions Retirements 1992 Land $69,688 $ - $ - $69,688 Buildings and structures 4,618,705 33,191 1,500 4,650,396 Furniture and fixtures 343,956 2,649 346,605 Total City general fixed assets $5,032,349 $35,840 $1,500 $5,066,689 The following is a summary of Proprietary Fund Type fixed assets at December 31, 1992: Less accumulated depreciation Water Sewer Refuse 257,694 Total Internal Total Net fixed assets Utility Utility Utility Liquor Enterprise Service Proprietary Land $45,223 $36,586 $ - $13,051 $94,860 $ - $94,860 Buildings 233,236 45,690 - 189,522 468,448 309,668 778,116 Improvements other than buildings 2,835,891 3,056,707 2,890 100,093 5,995,581 121,550 6,117,131 Machinery and equipment 263,943 437,468 5,447 200,420 907,278 99,384 1,006,662 Construction in process 14.587 59.710 - - _ 74.297 74.297 Total 3,392,880 3,636,161 8,337 503,086 7,540,464 530,602' 8,071,066 Less accumulated depreciation 1,565,544 1,869,154 2,275 257,694 3,694,667 182,852 3,877,519 Net fixed assets 1 827 336 $1,767,007 6 062 245 392 $3,845,797 347 750 $4,193,547 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, 1992 amounted to $101,479. 45 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 Note 10 LONG -''ERM DEBT General Obligation Bonds - The City issues General Obligation Bonds to provide funds for the acquisition and construction of major capital facility additions, General Obligation Bonds have been issued to refund General Obligation Tax Increment and General Obligation Special Assessment Bonds. 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 Improvement Refunding Bonds of 1987 Tax Increment Bonds: General Government Tax Increment Bonds of 1984 General Government Tax Increment 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 Bonds of 1991 Final Original Interest Issue Maturity Balance Issue Rate Date Date End of Year $2,230,000 5.50 - 5.60% 6/1/87 3/1/95 $910,000 1,070,000 8.50- 9.40% 6/1/84 3/1/94 305,000 9,090,000 5.75- 7.50% 6/1/87 3/1/02 7,925,000 1,100,000 8.40- 9.10% 8/1/87 2/1/97 850,000 2,399,721 6.90 - 7.15% 8/23/90 9/1/09 2,399,721 6,670,000 4.75 - 5.80% 12/1/91 3/1/02 6,670,000 $19,059,721 Annual debt service requirements to maturity for general obligation bonds including interest of $7,607,423 are as follows: Fiscal Year Ending December 31 1993 1994 1995 1996 1997 Thereafter Totals 46 Total $2,269,072 8,564,594 1,758,141 1,466,072 1,405,077 11,204,188 $26,667,144 I CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 These figures include a refunding payment of $6,550,000 in 1994 for Tax Increment 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, 1992, a total of $8,905,141 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 benefiting 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: IA. 1977 Downtown CBD Revitalization Plan A3 Type of District Authorizing Law Duration of District Original Tax Capacity Current Tax Capacity (for taxes collectible in 1992) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1992 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $118,634 $1,130,739 $954,618 $28,434,721 $11,450,000 $16,994,721 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 1992) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1992 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $37,928 $78,015 $40,145 47 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 C. 1984 University Avenue Redevelopment C8 Type of District Redevelopment Authorizing Law HRA (Minnesota Statutes Sections 462.545 and 462.585) Duration of District August 1, 2009 Original Tax Capacity $25,176 Current Tax Capacity (for taxes collectible in 1992) $111,429 Captured Tax Capacity Retained $86,253 Bonds Issued $1,070,000 Principal Payments $765,000 Bonds Outstanding at December 31, 1992 $305,000 D. 1987 Sullivan Lake Development H2 Type of District Redevelopment Authorizing Law HRA (Minnesota Statutes Sections 462.545 and 462.585) Duration of District August 1, 2009 Original Tax Capacity $38,186 Current Tax Capacity (for taxes collectible in 1992) $104,520 Captured Tax Capacity Retained $63,590 Bonds Issued $1,100,000 Principal Payments $250,000 Bonds Outstanding at December 31, 1992 $850,000 E. 1989 Multi -Use Redevelopment Plan K2 Type of District Redevelopment Authorizing Law HRA (Minnesota Statutes Sections 462.545 and 462.585) Duration of District October 4, 2014 Original Tax Capacity $249,832 Current Tax Capacity (for taxes collectible in 1992) $180,396 Captured Tax Capacity Retained - Bonds Issued - Principal Payments - Bonds Outstanding at December 31, 1992 - 48 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 Changes in Long -Term Liabilities - During the year ended December 31, 1992, the following changes occurred in liabilities reported in the General Long -Tenn Debt Account Group: Balance Balance City January 1 Additions Reductions December 31 Note payable to HRA General Obligation Tax Increment Bonds Principal Accreted interest General Obligation Special Assessment Bonds Liability for compensated absences Total City M73 Liability for compensated absences Total HRA $16,609 $ - $627 $15,982 19,054,721 - 905,000 18,149,721 175,444 184,046 - 359,490 1,185,000 - 275,000 910,000 329,244 14,153 - 343,397 $20j.761 018 $1j99 _ $1,180,627 $19,71 7 Balance Balance January 1 Additions Reductions December 31 $9,874 $ - $284 $9,590 $9,874 $0 $284 $9,590 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 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. 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 interest until September 2002. During the year ended December 31, 1992, accrued interest of $343,397 was included in general long -term debt for the 1990 Tax Increment Capital Appreciation Bonds. it CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31,1992 The following funds had a fund deficit as of December 31, 1992: Fund Deficit Special Revenue Funds: Municipal State Aid $62,902 Community Police 4,706 Expendable Trust Fund: Flex Benefit 2,370 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 speck 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, 1992: Reserve for capital replacement/construction: Water Utility Fund Sewer Utility Fund Central Garage Fund Reserve for insurance Total 50 Internal Enterprise Service Total $546,177 $ - $546,177 2,031,143 - 2,031,143 - 32,260 32,260 607,644 607,644 $2,577,320 $639,904 $3,217,224 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 B. RESERVATION OF FUND BALANCES 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 Prepayments - This reserve represents financial resources used for prepayment of subsequent years expenditures. Reserved for Program Expenditures - This amount represents financial resources used for the Housing Mortgage Program. Reservations of fund balances at December 31, 1992 are summarized as follows: Reserve for prepayments $320 Reserve for program expenditures 433,966 Reserve for community development 165,139 Reserve for apartment project maintenance 166,961 Totals $766,386 C. DESIGNATED UNRESERVED FUND BALANCES Designated for Compensated Absences - This amount represents funds set aside by the City to provide for compensated absences in future years. 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 for Business Revolving Loan Fund - This amount represents funds set aside by the HRA to provide certain low interest loans. 51 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 Designated for unreserved fund balances at December 31, 1992 are summarized as follows: The City maintains four Enterprise Funds which are intended to be self - supporting. Financial segment Sewer Central City of Columbia Heights information as of and for the year ended December 31, 1992 is as follows: Component Utility Garage Total Balance - beginning of year $883,101 Special Debt Expandable Unit Total (65,229) Operating revenue General Revenue Service Trust HRA Total Depreciation expense Designated for compensated absences $ - $ - $ - $100,000 $ - $100,000 244,635 Designated for debt service - - 8,905,141 - - 8,905,141 144,029 Designated for subsequent years' expenditures 39,836 750 - - - 40,586 (81,371) Designated for worldng capital 2,885,710 - - - - 2,885,710 6,000 Designated for Business Revolving Loan Fund - Net working capital - - 23.540 23.540 4,789,953 Total designated unreserved fund balance 2925 546 750 8905 141 100 000 23 540 11 954 977 Total assets 2,824,858 4,197,788 566,587 1,525,003 9,114,236 Total equity - contributed Note 12 SEGMENT INFORMATION - ENTERPRISE - FUNDS 1,563,879 Total equity - retained earnings 1,891,257 The City maintains four Enterprise Funds which are intended to be self - supporting. Financial segment Sewer Central information as of and for the year ended December 31, 1992 is as follows: Utility Utility Garage Total Balance - beginning of year $883,101 Water Sewer Refuse Liquor Total (65,229) Operating revenue $1,226,414 $1,040,370 $1,479,442 $4,822,423 $8,568,649 Depreciation expense 82,010 112,489 816 33,308 228,623 Operating income 244,635 20,778 160,865 347,646 773,924 Net income 236,673 144,029 96,295 196,173 673,170 Total operating transfers (51,835) (51,835) (81,371) (202,130) (387,171) Property, plant and equipment additions 215,503 239,908 4,832 6,000 466,243 Net working capital 920,728 2,257,513 560,458 1,051,254 4,789,953 Net cash provided by operating 246,770 113,217 206,048 446,800 1,012,835 Total assets 2,824,858 4,197,788 566,587 1,525,003 9,114,236 Total equity - contributed 856,807 707,072 - - 1,563,879 Total equity - retained earnings 1,891,257 3,471,964 566,520 1,296,646 7,226,387 Note 13 PROPRIETARY F 2ND ' -CONTRIBUTED CAPITAL This balance represents the cost of property contributed to the Enterprise Funds and Internal Service Funds by the City, less depreciation thereof charged to operations. Changes occurring in the account during the year were as follows: water Sewer Central 1! Utility Utility Garage Total Balance - beginning of year $883,101 $746,007 $188,849 $1,817,957 Less: Depreciation on contributed assets (26,294) (38,935) - (65,229) Balance - end of year $8� 5j6 8007 $707,072 $188849 $1,7� 52,7 52 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 loom=EN 13 DI W113 1 1 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 Employee's Retirement Association of Minnesota (PERA). PERA administers the Public Employee's 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, firefighters, 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, 1992 was $2,338,136 and $1,072,706, respectively; the City's total payroll was $4,027,556. 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. I 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. i' There are difference 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. 53 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 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: Statutory Rates: Required Employees Employer Rates PERF (Basic and Coordinated Plans) 4AI% 4.74% 9.95% PEPFF 8.00% 12.00% 18.60% Total contributions made by the City during fiscal year 1992 were: Percentage of Amount Covered Payroll Employees Employer Employees Employer PERF $109,692 $121,516 4.69% 5.20% PEPFF 85,817 120,724 8.00% 12.00% Totals $195,509 $242,240 The City's contribution for the year ended June 30, 1992 to the PERF represented .1125 percent of total contributions required of all participating entities. For the PEPFF, contributions for the year ended June 30, 1992, represented .4310 percent of total contributions required of all participating entities. C. FUNDING STATUS AND PROGRESS 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. 54 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 The pension benefit obligations as of June 30, 1992 are shown below: (In thousands) Total pension benefit obligation Net assets available for benefits, at cost (Market Values for PERF = $4,068,082; PEPFF = $1,012,812) Unfunded (assets in excess of) pension benefit obligation PERF PEPFF $4,868,124 $821,604 3,933,124 963,565 $935,000 ($141,961) The measurement of the pension benefit obligation is based on an actuarial valuation as of June 30, 1992. Net assets available to pay pension benefits were valued as of June 30, 1992. Changes in Benefit Provisions Effective for the June 30, 1992, valuation, legislative activity since the last actuarial valuation resulted in some minor changes in the benefit provision for the two funds. These changes did not have a significant impact on the PERF or 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, 1992. 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, 1992, and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. 55 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 Certain full-time and volunteer firefighters 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, 1992 is summarized as follows: Pension benefit obligation Net assets available for pension benefits, at cost Unfunded (assets in excess of) pension benefit obligation A. PLAN DESCRIPTION Fire Relief Fine Relief Total Association - Association - Police Single Volunteer Paid Relief Employer Division Division Asssociation Plans $528,085 $2,148,174 $4,685,115 $7,361,374 855,428 1,648,040 3,270,015 5,773,483 ($327,343) $500,134 $1,415,100 $1,587,891 Volunteer firefighters 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, 1992 was $46,828 compared to a total City payroll of $4,027,556. 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. 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. 56 CITY OF COLUMBIA HEIGHTS MINNESOTA SO A NOTES TO FINANCIAL STATEMENTS December 31, 1992 During the year ended December 31, 1992, contributions totaling $27,000 (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 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 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, 1992, the assets in excess of the pension benefit obligation were $327,343, determined as follows: Pension benefit obligation Retirees 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 $891,307) 855,428 (Assets in excess of) pension benefit obligation ($327.343) 57 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 E. HISTORICAL TREND INFORMATION Three -Year Historical Trend Information Net assets available for benefits, as a percentage of pension benefit obligation Unfunded (assets in excess of) pension benefit obligation, as a percentage of annual covered payroll Employer contributions, as a percentage of annual covered payroll December 31, 1990 1991 1992 145% 150% 162% N/A N/A N/A N/A N/A N/A Financial requirements of the Relief Association are determined in accordance with State Statutes rather than actuarially. 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 1992, the Association held no securities issued by the City or other related parties. A. PLAN DESCRIPTION Paid full -time regular firefighters 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, 1992 was $48,605 compared to a total City payroll of $4,027,556. B. PENSION BENEFITS A firefighter 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.) 58 I CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 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. 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, 1992, contributions totaling $120,247 (all employer) were made in accordance with contribution requirements determined by an actuarial valuation of the Plan as of December 31, 1990. Employer contributions represented 322% of covered payroll. The employer contributions consisted of $9,501 for normal cost and $110,746 for amortization of unfunded actuarial accrued liability. 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, 1992. 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. R 59 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 At December 31, 1992, the unfunded pension benefit obligation was $500,134, determined as follows: Pension benefit obligation Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $1,798,020 Current employees Accumulated employee contributions including allocated investment income 36,081 Employer financed 314,073 Total pension benefit obligation 2,148,174 Net assets available for benefits, at cost (market value was $1,699,302) 1,648,040 Unfunded pension benefit obligation $500z.1 34 The total pension benefit obligation as of January 1, 1992 was $2,359,384. During the year, the Plan experienced a net decrease of $211,210 in the pension benefit obligation. E. HISTORICAL TREND INFORMATION Net assets available for benefits, as a percentage of pension benefit obligation Unfunded (assets in excess of) pension benefit obligation, as a percentage of annual covered payroll December 31, 1990 _ 1991 1992 62% 65% 2003% 1700% Employer contributions, as a percentage of annual covered payroll 264% 243% Contributions made were in accordance with actuarially determined requirements. 77% 1340% 322% 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. F. RELATED PARTY INVESTMENTS During 1992, the Association held no securities issued by the City or other related parties. I CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 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, 1992 was $157,344 compared to a total City payroll of $4,027,556. B . PENSION BENEFITS A policeman who completes at least 20 years as an active member of the Columbia Heights Police Department and has been member of the Relief Association for 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 t 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, 1992, contributions totaling $213,216 ($204,719 employer and $8,497 employees) were made in accordance with contribution requirements determined by an actuarial valuation of the Plan as of December 31, 1990. The employer contribution consisted of $43,932 for normal cost and $160,787 for amortization of the unfunded actuarial accrued liability. Employer contributions represented 137% of covered payroll. D. FUNDING STATUS W 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 waders 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. 61 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 At December 31, 1992, the unfunded pension benefit obligation was as follows: Pension benefit obligation Retirees and beneficiaries currently receiving benefits and retired policemen entitled to benefits, but not yet receiving them $3,130,752 Current employees Accumulated employee contributions including allocated investment income 153,476 Employer financed 1,400,887 Total pension benefit obligation 4,685,115 Net assets available for benefits, at cost (market value was $3,367,799) (3,270,015) Unfunded pension benefit obligation $1,415,100 The total pension benefit obligation as of January 1, 1992 was $4,634,966. During the year, the Plan experienced a net change of $50,149 in the pension benefit obligation. E. HISTORICAL TREND INFORMATION Three -Year Historical Trend Information Net assets available for benefits, as a percentage of pension benefit obligation Unfunded (assets in excess of) pension benefit obligation, as a percentage of annual covered payroll Employer contributions, as a percentage of annual covered payroll December 31, 1990 1991 1992 61% 64% 70% 1238% 1110% 899% 131% 136% 137% Financial requirements of the Relief Association are determined in accordance with State Statutes rather than actuarially. 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 1992, the Association held no securities issued by the City or other related parties. 62 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1992 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. 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 a named defendant in litigation alleging failure to perform under the terms and conditions of a reassessment agreement. The City's insurance carrier has denied coverage and the potential exposure is unknown at this time. 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. During 1992, the City settled a bodily injure claim due to alleged excessive force. 63 COLUMBIA HEIGHTS MINNESOTA C ITY OF COLUM , NOTES TO FINANCIAL STATEMENTS December 31, 1992 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. During January, 1993, the HRA received a settlement of $116,667 for 1990 tax increment deficiencies from a redeveloper pursuant to the terms of a 1987 private redevelopment agreement between the HRA and said redeveloper. Z COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS 65 CH •• CITY OF COLUMBIA HEIGHTS, MINNESOTA 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." CH CITY OF COLUMBIA HEIGHTS, MINNESOTA I U 0 68 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND Statement 6 BALANCE SHEET December 31, 1992 With Comparative Amounts For December 31, 1991 Assets 1992 1991 Cash and cash equivalents �l $3,072,563 2 4 $ ,9 1,048 Temporary investments - 95,514 ' Receivables: Accounts 12,451 9,177 Deferred special assessments - 591,889 Taxes: Unremitted 31,796 52,454 Delinquent 109,305 88,809 Interest 18,145 13,024 Due from other governmental units 49,224 83,964 Due from component unit 3,827 11,665 ' Prepaid expense 320 59 Total assets $3,297,631 $3,887,603 Liabilities and Fund Balance ' Liabilities: Accounts payable $63,536 $77,596 Contracts payable - retained percentage - 168 ' Accrued salaries and withholdings payable 104,520 70,240 Due to other governmental units 66,829 2,259 Due to component unit 4,075 3,885 Deferred revenue 132,805 700,360 Total liabilities 371,765 854,508 Fund Balance: Reserved for prepayments 320 95,366 Unreserved: Designated for subsequent years' expenditures 39,836 101,528 Designated for working capital 2,885,710 2,836,201 Total fund balance 2,925,866 3,033,095 Total liabilities and fund balance $3,297,631 $3,887,603 i CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND Statement 7 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - Page 1 of 2 BUDGET AND ACTUAL For The Year Ended December 31, 1992 With Comparative Actual Amounts For The Year Ended December 31, 1991 Expenditures: General government: Council 207,445 1992 (29,382) 196,352 Manager 260,594 241,420 Over 210,599 Legal 142,550 174,654 (under) 1991 Finance and elections Budget Actual Budget Actual Revenues: 106,912 108,272 1,360 99,993 Taxes $2,418,914 $2,388,718 ($30,196) $2,225,803 Licenses and permits 152,450 125,275 (27,175) 164,945 Intergovernmental 3,020,274 3,238,950 218,676 3,040,675 Charges for services 337,515 349,875 12,360 340,184 Fines and forfeitures 120,850 104,673 (16,177) 116,386 Interest 120,000 136,814 16,814 127,887 Other revenues: 133,622 137,743 4,121 135,431 Miscellaneous 29,750 19,099 (10,651) 141,831 Proceeds from sale of land 500 500 - 1,193 Total revenues 6,200,253 6,363,904 163,651 6,158,904 Expenditures: General government: Council 207,445 178,063 (29,382) 196,352 Manager 260,594 241,420 (19,174) 210,599 Legal 142,550 174,654 32,104 156,964 Finance and elections 549,318 503,318 (46,000) 443,519 Assessing 106,912 108,272 1,360 99,993 Planning 30,796 16,352 (14,444) 15,331 General government buildings 141,623 134,716 (6,907) 162,624 Total general government 1,439,238 1,356,795 (82,443) 1,285,382 Public safety: Police /animal/civil defense 1,783,596 1,745,072 (38,524) 1,697,065 Fire 703,240 680,973 (22,267) 705,719 Inspections 133,622 137,743 4,121 135,431 Total public safety 2,620,458 2,563,788 (56,670) 2,538,215 Public works: Engineering 269,562 246,767 (22,795) 236,855 Maintenance 630,367 572,533 (57,834) 654,278 Total public works 899,929 819,300 (80,629) 891,133 Other departments: Sanitation 137,515 176,216 38,701 108,108 Parks and recreation 1,075,306 998,970 (76,336) 954,236 Library 396,390 383,933 (12,457) 390,251 Contingencies 104,200 18,204 (85,996) 3,803 Total other departments 1,713,411 1,577,323 (136,088) 1,456,398 70 Total expenditures 6,673,036 6,317,206 (355,830) 6,171,128 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND Statement 7 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND 1 BALANCE - Page 2 of 2 BUDGET AND ACTUAL For The Year Ended December 31, 1992 With Comparative Actual Amounts For The Year Ended December 31, 1991 1992 Over (under) 1991 Budget Actual Budget Actual Revenues over (under) expenditures ' (472,783) 46,698 519,481 (12,224) Other financing sources (uses): Operating transfers in 507,616 493,439 (14,177) 570,988 Operating transfers (out) (452,000) (647,366) (195,366) (124,300) Total other financing sources (uses) 55,616 (153,927) (209,543) 446,688 Net increase (decrease) in fund balance ($417,167) (107,229) $309,938 434,464 Fund balance - January 1 3,033,095 2,598,631 tFund balance - December 31 $2,925,866 $3,033,095 71 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND Statement 8 SCH EDULE OF REVENUES - BUDGET AND ACTUAL For The Year Faded December 31, 1992 With Comparative Actual Amounts For The Year Ended December 31, 1991 Revenues: Property taxes: Ad valorem Penalties and interest Total taxes Licenses and permits: Licenses Permits Total licenses and permits Intergovernmental: Federal grants: Civil defense State grants: State grant Local government aid Property tax relief Law officer training Fire training Shade tree 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 72 1992 Over (under) Budget Actual Budget $2,411,914 7,000 2,418,914 88,450 64,000 152,450 4,185 $2,379,700 9,018 2,388,718 80,081 45,194 125,275 3,802 ($32,214) 2,018 (30,196) (8,369) (18,806) (27,175) (383) 1991 $2,215,074 10,729 2,225,803 92,364 72,581 164,945 3,697 5,000 12,081 7,081 - 1,847,563 2,022,119 174,556 1,885,919 956,681 961,888 5,207 917,861 8,000 6,263 (1,737) 7,959 - - - 1,915 - 5,000 5,000 - 111,545 126,246 14,701 121,694 61,376 55,999 (5,377) 56,427 - - - 16,094 18,060 18,060 - 18,060 - 9,830 9,830 11,049 7,864 17,662 9,798 - 3,020,274 3,238,950 218,676 3,040,675 32,853 33,178 325 31,893 7,000 7,349 349 5,629 106,512 113,974 7,462 94,001 29,800 43,338 13,538 56,332 161,350 152,036 (9,314) 152,329 337,515 349,875 12,360 340,184 8,700 9,422 722 8,684 112,150 95,251 (16,899) 107,702 120,850 104,673 (16,177) 116,386 120,000 136,814 16,814 127,887 27,750 17,083 (10,667) 141,831 500 500 - 1,193 2,000 2,016 16 - 150,250 156,413 6,163 270,911 $6,200,253 $6,363,904 $163,651 $6,158,904 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND Statement 9 SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL ' For The Year Ended December 31, 1992 With Comparative Actual Amounts For The Year Ended December 31, 1991 73 1992 Actual ' Supplies Over Personal and Capital (under) 1991 Budget Services Services Outlay Total Budget Actual Expenditures: ' General government: Council and manager. Council $207,445 $102,084 $75,800 $179 $178,063 ($29,382) $196,352 ' Manager 260,594 202,670 37,591 1,159 241,420 (19,174) 210,599 Legal 142,550 - 174,654 - 174,654 32;104 156,964 Total council and manager ' 610,589 304,754 288,045 1,338 594,137 1( 6,452) 563,915 ' Administrative services: Finance 508,534 340,794 55,043 68,413 464,250 (44,284) 413,746 Elections 40,784 37,502 1,566 - 39,068 (1,716) 29,773 Assessing 106,912 44,579 63,693 108,272 1,360 99,993 Planning 30,796 16,352 = 16,352 (14,444) 15,331 General government buildings 141,623 4,406 122,453 7,857 134,716 (6,907) 162,624 Total administrative services 828,649 427,281 259,107 76,270 762,658 65,991 721,467 ' Total general government 1,439,238 732,035 547,152 77,608 1,356,795 8( 2,443) 1,285,382 Public safety: Police 1,745,234 1,573,472 135,285 5,848 1,714,605 (30,629) 1,666,783 Fire 703,240 623,616 50,696 6,661 680,973 (22,267) 705,719 Inspections 133,622 117,129 20,614 137,743 4,121 135,431 Civil defense 26,194 11,424 9,051 - 20,475 (5,719) 19,759 Animal control 12,168 - 8,844 1,148 9,992 (2,176) 10,523 Total public safety 2,620,458 2,325,641 224,490 13,657 2,563,788 5( 6,670) 2,538,215 Public works, highways and streets: Engineering 269,562 188,708 42,159 15,900 246,767 (22,795) 236,855 Streets 480,184 245,404 193205 5,984 444,593 (35,591) 515,997 Street lighting 112,544 917 90,231 91,148 (21;396) 79,124 Traffic signs/signals 37,639 24,295 12,497 - 36,792 (847) 59,157 Total public works, highways and streets 899,929 459,324 338,092 21,884 819,300 8( 0,629) 891,133 Other departments: Sanitation 137,515 42,422 133,794 - 176,216 38,701 108,108 Parks and recreation 1,075,306 631,794 301,836 65,340 998,970 (76,336) 954,236 1 Library 396,390 254,466 115,464 14,003 383,933 (12,457) 390,251 Contingencies 104,200 18,204 - 18,204 8( 5,996) 3,803 Total other departments 1,713,411 928,682 569,298 79,343 1,577,323 136,088 1,456,398 Total expenditures $6,673,036 $4,445,682 $1,679,032 $192,492 $6,317,206 ($355,830) $6,171,128 73 CH 74 CITY OF COLUMBIA HEIGHTS, M NNESOTA 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. Housing Mortgage Fund - established to account for proceeds and expenditures relating to housing mortgage refinancing proceeds which are not restricted for debt ' service. Municipal State Aid Fund - maintained according to State Statute for maintenance and construction of streets or municipal state aid systems. , "",j - L, 0L4lJ11J11NLL LV 4L.L.VU11L 1Vl 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 to account for revenues and expenditures of D.A.R.E. (Drug Awareness) Program. Community Police Fund - established in 1992 to account for revenues and expenditures associated with grant received for Community Police Program for Hilltop. Project Pride - established in 1992 to ensure that every 1 resident of the City has access to recreation programs. Parking Ramp Fund - established to account for revenues from parking ramp assessment that are to be used for redevelopment. Recreation Contributed Projects Fund - established to monitor contributions for recreational activities and related expenditures. Contributed Projects Fund - established to monitor contributions and related expenditures. 75 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS ' COMBINING BALANCE SHEET December 31, 1992 With Comparative Totals For December 31, 1991 ' Assets Cash and cash equivalents Temporary investments Cash and investments held in escrow Receivables: Accounts Special assessments Interest Due from other governmental units Due from other funds Total assets Liabilities and fund balance Liabilities: Accounts payable Contracts payable - retained percentage Accrued salaries and withholdings payable Due to other funds Deferred revenue Total liabilities Fund balance (deficit): Reserved Unreserved: Designated for subsequent years' expenditures Undesignated Total fund balance (deficit) Total liabilities and fund balance 76 Municipal Housing State Cable Mortgage Aid Television Paratransit $- $46 $199 $12,228 4,477 627 13 - 95,320 - 6,691 0 100,470 212 18,919 433,966 - 750 - _ 11,823 (63,652) 290,571 38,784 445,789 (62,902) 290,671 38,784 $445,789 $37,568 $290,883 $57,703 11,807 - 157,664 47,012 433,966 - - - - - 22,991 9,815 16 - 1,832 241 - 37,568 3,370 635 - - 105,026 _ $445,789 $37,568 $290,883 $57,703 $- $46 $199 $12,228 4,477 627 13 - 95,320 - 6,691 0 100,470 212 18,919 433,966 - 750 - _ 11,823 (63,652) 290,571 38,784 445,789 (62,902) 290,671 38,784 $445,789 $37,568 $290,883 $57,703 Statement 10 Recreation D.A.R.E. Community Project Parking Contributed Contributed Totals ' Program Police Pride Ramp Projects Projects 1992 1991 ' $- $- $- $- $- $- $- $231,539 3,025 - 4,057 193,426 20,051 14,781 451,823 - ' - 433,966 - - - - - - - 32,806 36,310 - - - 561,631 - - 561,631 - 16 - 32 394 - 2,531 1,785 - 31,667 - - 73,240 57,758 - - - - - - 105,026 42,907 $3,041 $31,667 $4,089 $755,451 $20,051 $14,781 $1,661,023 $370,299 $12,473 $54,270 4,477 ' - - - - 640 139 9,706 = - 105,026 42,907 1 26,667 561,631 594,989 0 36,373 0 561,631 0 0 717,605 97,316 " - - - - - 433,966 - - - - - - - 750 3,342 3,041 (4,706) 4,089 193,820 20,051 14,781 508,702 269,641 3,041 (4,706) 4,089 193,820 20,051 14,781 943,418 272,983 $3,041 $31,667 $4,089 $755,451 $20,051 $14,781 $1,661,023 $370,299 1 77 �J CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS , COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Faded December 31, 1992 With Comparative Totals For The Year Ended December 31, 1991 ' fl 78 , Municipal Housing State Cable Mortgage Aid Television Paratransit , Revenues: Special assessments $ _ $ _ $ - $ _ Intergovernmental - 137,025 - 115,665 Fees/program revenue - - 72,861 18,055 Interest 264 - 14,354 1,885 Other revenues: Miscellaneous 445,525 - 54,683 16,060 Contributions Total revenues _ 445,789 _ 137,025 141,898 151,665 Expenditures: Parks and recreation: Personal services _ Supplies _ Other services and charges - Capital outlay _ _ _ _ Other. Personal services - 30,483 1,138 - j Supplies - 120 821 480 Other services and charges _ 26,144 28,246 126,214 Capital outlay - 132,346 300 - Total expenditures 0 189,093 30,505 126,694 Revenues over (under) expenditures 445,789 (52,068) 111,393 24,971 ' Other financing sources (uses): Operating transfers in - 3,303 - 10,000 Operating transfers (out) - (3,303) (45,989) (7,010) Total other financing sources (uses) 0 0 (45,989) 2,990 Net increase (decrease) in fund balance 445,789 (52,068) 65,404 27,961 , Fund balance (deficit) - January 1 - (10,834) 225,267 10,823 Fund balance (deficit) - December 31 $445,789 ($62,902) $290,671 $38,784 fl 78 Statement 11 79 Recreation D.A.RM. Community Project Parking Contributed Contributed Totals Program Police Pride Ramp Projects Projects 1992 1991 ' $ $ - $ _ $95,366 $ - $ - $95,366 $ - 13,333 - - - 266,023 208,994 - 1,667 178 - - - 92,761 84,362 127 - 252 3,088 - - 19,970 17,536 - - 5,300 - - 521,568 26,758 1,177 - - - 24,889 19,040 45,106 64,557 1,304 15,000 5,730 98,454 24,889 19,040 1,040,794 402,207 - - 545 - - - 545 - 684 - 30,367 31,051 1 412 13,043 13,455 - - - - 3,519 - 3,519 - ' - 19,706 - - - - 51,327 12,683 1,619 - - - 961 4,001 23,660 367 - - - - 2,410 183,381 151,572 - - - 4,801 137,447 88,777 1,986 19,706 1,641 0 46,929 8,172 424,726 276,692 682 4,706 4,089 98,454 22,040 10,868 616,068 125,515 2,000 _ 95,366 _ 110,669 41,980 (56,302) 201,703 2,000 0 0 95,366 0 0 54,367 159,723 1,318 (4,706) 4,089 193,820 (22,040) 10,868 670,435 (34,208) 1,723 - - - 42,091 3,913 272,983 307,191 $3,041 $4,706 ( ) $4 089 1 $ 93,820 $20,051 $14,781 $943,418 $272,983 79 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - MUNICIPAL STATE AID STREET FUND Statement 12 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1992 With Comparative Actual Amounts For The Year Ended December 31, 1991 Revenues: Intergovernmental: State of Minnesota: Maintenance Construction Total revenues Expenditures: Maintenance: Personal services Supplies Other services and charges Capital outlay Construction: Personal services Other services and charges Capital outlay Total expenditures Revenues over (under) expenditures Operating financing sources (uses): Operating transfers in Operating transfers (out): Maintenance Construction Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance (deficit) - January 1 Fund balance (deficit) - December 31 80 1992 Over (Under) 1991 Budget Actual Budget Actual $114,278 $114,278 $- $130,713 114,000 22,747 (91,253) 31,851 228,278 137,025 (91,253) 162,564 10,519 9,254 (1,265) 10,514 600 120 (480) 96 19,890 25,115 5,225 9,356 37,380 23,336 (14,044) 59,181 53,032 21,229 (31,803) 1,670 300 1,029 729 39,062 370,860 109,010 (261,850) 4,524 492,581 189,093 (303,488) 124,403 (264,303) (52,068) 212,235 38,161 - 3,303 3,303 35,480 - (3,303) (3,303) (104,556) (174,500) - 174,500 (19,299) (174,500) 0 174,500 (88,375) ($438,803) (52,068) $386,735 (50,214) (10,834) 39,380 (62,902) ($10,834) CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - CABLE TELEVISION FUND Statement 13 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1992 With Comparative Actual Amounts For The Year Ended December 31, 1991 Revenues: Franchise fees Interest Other revenues: Miscellaneous Total revenues Expenditures: Personal services Supplies Other services and charges Capital outlay Total expenditures Revenues over (under) expenditures Other financing (uses): Operating transfers (out) Net increase in fund balance Fund balance - January 1 Fund balance - December 31 1992 Budget Actual Over (Under) 1991 Budget Actual $68,000 $72,861 $4,861 $68,227 8,500 14,354 5,854 15,902 24,033 54,683 30,650 26,758 100,533 141,898 41,365 110,887 908 1,138 230 499 1,167 821 (346) 550 40,185 28,246 (11,939) 10,612 3,100 300 (2,800) 14,052 45,360 30,505 (14,855) 25,713 55,173 111,393 56,220 85,174 (43,824) (45,989) (2,165) (69,788) $11,349 65,404 $54,055 15,386 225,267 209,881 $290,671 $225,267 81 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL- REVENUE FUND - PARATRANSIT FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1992 With Comparative Actual Amounts For The Year Ended December 31, 1991 Statement 14 ' ' 1992 Over (Under) 1991 Budget Actual Budget Actual • , Revenues: Intergovernmental $97,875 $115,665 $17,790 $46,430 Paratransit fees 19,662 18,055 (1,607) 16,135 Interest - 1,885 1,885 1,634 t Miscellaneous - 16,060 16,060 - Total revenues 117,537 151,665 34,128 64,199 Expenditures: Supplies 1,065 480 (585) - Other services and charges 133,928 126,214 (7,714) 84,262 Total expenditures 134,993 126,694 (8,299) 84,262 Revenues over (under) expenditures (17,456) 24,971 42,427 (20,063) Other financing sources (uses): Operating transfers in 10,000 10,000 - 5,000 Operating transfers (out) (7,025) (7,010) 15 (8,060) Total other financing sources (uses) 2,975 2,990 15 (3,060) Net increase (decrease) in fund balance ($14,481) 27,961 $42,442 (23,123) , Fund balance - January 1 10,823 33,946 , Fund balance - December 31 $38,784 $10,823 82 V CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - D.A.R.E. PROGRAM Statement 15 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1992 With Comparative Actual Amounts For The Year Ended December 31, 1991 ' Revenues: Intergovernmental Contributions Total revenues Expenditures: Supplies Other services and charges Total expenditures Revenues over (under) expenditures 1 Other fmancing sources: Operating transfers in Total other financing sources Net increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 i 1 1 1992 Over (Under) 1991 Budget Actual Budget Actual $ - $127 $127 $ - 2,500 1,177 (1,323) 2,552 2,500 1,304 (1,196) 2,552 2,000 1,619 (381) 1,787 65 367 302 542 2,065 1,986 (79) 2,329 435 (682) (1,117) 223 2,000 2,000 - 1,500 2,000 2,000 0 1,500 $2,435 1,318 ($1,117) 1,723 1,723 - $3,041 $1,723 83 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - RECREATION CONTRIBUTED PROJECTS Statement 16 COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1992 With Comparative Actual Amounts For The Year Ended December 31, 1991 84 1992 1991 Revenues: Contributions $24,889 $60,605 Expenditures: Supplies 30,367 21,227 Other services and charges 13,043 7,738 Capital outlay 3,519 11,020 Total expenditures 46,929 39,985 Revenues over (under) expenditures (22,040) 20,620 Fund balance - January 1 42,091 23,984 Residual equity transfers - (2,513) Fund balance - December 31 $20,051 $42,091 84 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - CONTRIBUTED PROJECTS Statement 17 COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ' For The Year Faded December 31, 1992 With Comparative Actual Amounts For The Year Faded December 31, 1991 1992 1991 Revenues: Contributions $19,040 $1,400 Expenditures: Supplies 961 Other services and charges 1 2,410 Capital outlay 4,801 - Total expenditures 8,172 0 Revenues over expenditures 10,868 1,400 Fund balance - January 1 3,913 - Residual equity transfers - 2,513 Fund balance - December 31 $14,781 $3,913 85 CH 86 CITY OF COLUMBIA HEIGHTS, MEMSOTA DEBT SERVICE FUNDS The Debt Service Funds are used to account for the collection of tax levies and other revenues and to record the payment and interest on outstanding General Obligation Bonds. Special Assessment Refunding Bonds of 1987 Fund - used to account for revenue and expenditures associated with Special Assessment Bonds of 1987. Tax Increment Bonds Funds - a separate fund is used to account for each separate Tax Increment Bond Issue revenue and expenditures. 87 CITY OF COLUMBIA HEIGHTS, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1992 With Comparative Totals For December 31, 1991 Temporary investments $968,029 $1,382,448 $ - Special _ 5,202 - Assessment Tax Tax Refunding Increment Increment Bonds of 1987 Bonds Bonds of 1984 Assets _ 5 ,202 - Temporary investments $968,029 $1,382,448 $ - Cash and investments deposited with fiscal agents _ 5,202 - Cash and investments in escrow Receivables: $ - _ Deferred special assessments 58,287 - Taxes: _ 5 ,202 - Unremitted - 11,147 - Delinquent - 569,713 - Interest 7,852 13,470 - Due from component unit - 1,639 - Total assets $1,034,168 $1,983,619 $0 Liabilities and Fund Balance Liabilities: Deferred revenue: Property taxes - delinquent $ - $569,713 $ - Special assessments 58,287 - Accrued interest payable _ 5 ,202 - Due to component unit - 391 _ Total liabilities 58,287 575,306 0 Fund Balance: Designated for debt service 975,881 1,408,313 - Total liabilities and fund balance $1,034,168 $1,983,619 $0 NO WE Statement 18 3g i 3e> -f3 787 Tax Tax Capital Tax Increment Increment Appreciation Incr„ment Refunding Taxable Bonds Refunding Totals Bonds of 1987 Bonds of 1987 of 1990 Bonds of 1991 1992 1991 $ $ " $ - $ - $2,350,477 $3,010,799 ' 5,202 57,943 = 6,520,947 6,520,947 6,543,268 - 58,287 89,703 11,147 32,667 - 569,713 323,052 _ - 21,322 16,960 ' - - 1,639 - $0 $0 $0 $6,520,947 $9,538,734 $10,074,392 $ $ - $ " $ • $569,713 $323,052 58,287 89,703 _ 5.202 57,943 0 0 - 0 391 470,698 0 633,593 I- - 6,520,947 8,905,141 9,603,694 $0 $0 $0 $6,520,947 $9,538,734 $10,074392 WE CITY OF COLUMBIA HEIGHTS, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1992 With Comparative Totals For The Year Ended December 31, 1991 Expenditures: Debt service: Principal retirement Interest and fiscal charges Miscellaneous Total expenditures Revenues over (under) expenditures Other financing sources (uses): Bond proceeds Operating transfers in Operating transfers (out) Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 I, 275,000 Special 135,000 66,794 - Assessment Tax Tax - Refunding Increment Increment (228,470) Bonds of 1987 Bonds Bonds of 1984 Revenues: 169,831 - (1,593,410) Tax increments $ - $1,108,002 $ - Special assessments 51,814 - _ Interest 61,510 101,570 - Other revenues - 8,742 - Total revenues 113,324 1,218,314 0 Expenditures: Debt service: Principal retirement Interest and fiscal charges Miscellaneous Total expenditures Revenues over (under) expenditures Other financing sources (uses): Bond proceeds Operating transfers in Operating transfers (out) Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 I, 275,000 - 135,000 66,794 - 34,831 - 72,666 - 341,794 72,666 169,831 (228,470) 1,145,648 (169,831) - - 169,831 - (1,593,410) - 0 (1,593,410) 169,831 (228,470) (447,762) 0 1,204,351 1,856,075 - $975,881 $1,408,313 $0 Statement 19 Tax Tax Capital Tax Increment Increment Appreciation Increment Refunding Taxable Bonds Refunding Totals Bonds of 1987 Bonds of 1987 of 1990 Bonds of 1991 1992 1991 $ " $ - $ - $ - $1,108,002 $1,248,680 " - - 51,814 277,171 ' - - 242,611 405,691 250,563 " - - 8,742 4,276 0 0 0 242,611 1,574,249 1,780,690 640,000 570,291 1,210,291 (1,210,291) 1,210,291 1,210,291 0 $0 130,000 82,471 212,471 (212,471) 212,471. 212,471 0 $0 567 567 (567) 567 567 0 $0 265,182 265,182 (22,571) 250 250 (22,321) 6,543,268 $6,520,947 1,180,000 1,020,136 72,666 2,272,802 (698,553) 1,593,410 (1,593,410) 0 (698,553) 9,603,694 $8,905,141 2,895,000 1,055,683 72,015 4,022,698 ° (2,242,008) 6,670,000 3,381,804 (3,381,804) 6,670,000 4,427,992 5,175,702 $9,603,694 91 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA DEBT SERVICE FUND - SPECIAL ASSESSMENT REFUNDING BONDS OF 1987 Statement 20 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1992 With Comparative Actual Amounts For The Year Ended December 31, 1991 1992 Over (Under) 1991 Budget Actual Budget Actual Revenues: Special assessments $42,940 $51,814 $8,874 $277,171 Interest 70,000 61,510 (8,490) 74,442 Total revenues 112,940 113,324 384 351,613 Expenditures: Debt service: Principal retirement 275,000 275,000 - 275,000 Interest and fiscal charges 68,090 66,794 (1,296) 83,127 Total expenditures 343,090 341,794 (1,296) 358,127 Revenues over (under) expenditures ($230,150) (228,470) $1,680 (6,514) Fund balance - January 1 1,204,351 1,210,865 Fund balance - December 31 $975,881 $1,204,351 r 92 CITY OF COLUMBIA HEIGHTS, MINNESOTA DEBT SERVICE FUND - TAX INCREMENT BONDS Statement 21 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Faded December 31, 1992 With Comparative Actual Amounts For The Year Ended December 31, 1991 Revenues: Tax increments Interest Other revenues: Proceeds from sales of land Total revenues Expenditures: Miscellaneous: Redevelopment tax increment Multi -use redevelopment plan Total expenditures Revenues over expenditures Other financing (uses): Operating transfers (out) Net increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 1992 Over (Under) 1991 Budget Actual Budget Actual $1,060,000 $1,108,002 $48,002 $1,248,680 100,000 101,570 1,570 92,101 4,500 8,742 4,242 4,276 1,164500 1,218,314 53,814 1,345,057 13,000 12,666 (334) 60,000 60.E 60,000 - 12,015 73,000 72,666 (334) 72,015 1,091,500 1,145,648 54,148 1,273,042 (1596,910) (1593,410) 3,500 (1581,804) ($505,410) (447,762) $57,648 (308,762) 1,856,075 2,164,837 $1,408,313 $1,856,075 93 CITY OF COLUMBIA HEIGHTS, MINNESOTA DEBT SERVICE FUND - TAX INCREMENT BONDS OF 1984 Statement 22 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1992 With Comparative Actual Amounts For The Year Faded December 31, 1991 Revenues Expenditures: Debt service: Principal retirement Interest and fiscal charges Total expenditures Revenues (under) expenditures Other financing sources: Operating transfers in Net increase in fund balance Fund balance - January 1 Fund balance - December 31 94 1992 Over (Under) 1991 Budget Actual Budget Actual 135,000 135,000 - 125,000 35,955 34,831 (1,124) 46,353 170,955 1� 69_831 (1,124) 171,353 (170,955) (169,831) 1,124 (171,353) 170,955 169,831 (1,124) 171,353 0 $0 0 $0 $0 CITY OF COLUMBIA HEIGHTS, MINNESOTA DEBT SERVICE FUND - TAX INCREMENT REFUNDING BONDS OF 1987 Statement 23 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Faded December 31. 1992 With Comparative Actual Amounts For The Year Ended December 31, 1991 Revenues: Interest Total revenues Expenditures: Debt service: Principal retirement Interest and fiscal charges Total expenditures Revenues (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers (out) Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 1992 Over (Under) 1991 Budget Actual Budget Actual $ - $ - $ - $62,433 0 0 0 62,433 640,000 640,000 - 525,000 570,985 570,291 (694) 604,093 1,210,985 1,210,291 (694) 1,129,093 (1,210,985) (1,210,291) 694 (1,066,660) 1,210,985 1,210,291 (694) 1,066,660 (1,800,000) 1,210,985 1,210,291 (694) (733,340) $0 0 $0 (1,800,000) - 1,800,000 $0 $0 95 CITY OF COLUMBIA HEIGHTS, MINNESOTA DEBT SERVICE FUND - TAX INCREMENT TAXABLE BONDS OF 1987 Statement 24 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1992 With Comparative Actual Amounts For The Year Ended December 31, 1991 Revenues Expenditures: Debt service: Principal retirement Interest and fiscal charges Total expenditures Revenues (under) expenditures Other financing sources: Operating transfers in Net increase in fund balance Fund balance - January 1 Fund balance - December 31 .- 1992 Budget Actual Over (Under) 1991 Budget Actual $- $- $- $- 130,000 130,000 - 120,000 83,470 82,471 (999) 93,063 213,470 212,471 (999) 213,063 (213,470) (212,471) 999 (213,063) 213,470 212,471 (999) 213,063 $0 0 $0 0 $0 $0 CITY OF COLUMBIA HEIGHTS, MINNESOTA DEBT SERVICE FUND - TAX INCREMENT CAPITAL APPRECIATION BONDS OF 1990 Statement 2S STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1992 With Comparative Actual Amounts For The Year Ended December 31, 1991 97 1992 Over (Under) 1991 Budget Actual Budget Actual Revenues $ _ $ _ $ _ $ _ Expenditures: Debt service: Interest and fiscal charges 1,500 567 (933) 308 Total expenditures 1,500 567 (933) 308 Revenues (under) expenditures (1,500) (567) 933 (308) Other financing sources: Operating transfers in 1,500 567 (933) 308 Net increase in fund balance $0 0 $0 0 Fund balance - January 1 Fund balance - December 31 $0 $0 97 CITY OF COLUMBIA HEIGHTS, MINNESOTA DEBT SERVICE FUND - TAX INCREMENT REFUNDING BONDS OF 1991 Statement 26 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Faded December 31, 1992 With Comparative Actual Amounts For The Year Ended December 31, 1991 1992 Over (Under) 1991 Budget Actual Budget Actual Revenues: Interest $264,933 $242,611 ($22,322) $21,587 Expenditures ' Debt service: Interest and fiscal charges 266,433 265,182 (1,251) 148,319 Total expenditures 266,433 265,182 (1,251) 148,319 Revenues (under) expenditures (1,500) (22,571) (21,071) (126,732) Other financing sources: Bond proceeds - - - 6,670,000 Operating transfers in 1,500 250 (1,250) Total other financing sources 1,500 250 (1,250) 6,670,000 Net increase (decrease) in fund balance $0 (22321) ($22,321) 6,543,268 Fund balance - January 1 6,543,268 _ Fund balance - December 31 $6,520,947 $6,543,2,68 , 98 CAPITAL PROJECT FUNDS Capital Project Funds are maintained to account for the construction of major capital facilities. Project funding consists of 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. vital Improvement Fund 401 - used to account for Capital Project Funds whereby funding is provided by a number of internal and external sources. 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 Parking Maintenance Fund 405 - used for maintenance of the West Side Parking. Capital Improvement Fund 408 - used for projects involving State Aid streets. used to account for improvements 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. Infrastructure Replacement Fund 430 - used to fund replacement of City infrastructure. Capital Equipment Replacement Fund 431 - used to fund replacement of fixed assets as needed. Oil r J CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL PROJECT FUND ' COMBINING BALANCE SHEET December 31, 1992 With Comparative Totals For December 31, 1991 Assets Temporary investments Receivables: Accounts Special assessments: Unremitted Delinquent Deferred Interest Due from other governmental units Due from other funds Due from component unit Total assets Liabilities and Fund Balance Liabilities: Accounts payable Contracts payable - retained percentage Accrued salaries and withholdings payable Due to other funds Due to component unit Deferred revenue Total liabilities Fund balance: Unreserved: Designated for subsequent years' expenditures Undesignated Total fund balance Total liabilities and fund balance 10 7 8,347 186 3,151 629 24,608 - - - $84,004 $23,993 $403,087 $71,461 $67,096 $ - $ - $1,430 494 1,238 - - 89 68,828 0 0 1,519 15,176 Water 403,087 Downtown 15,176 Capital Surface Senior Parking $23,993 Improvement Management Housing Maintenance Fund 401 Fund 403 Fund 404 Fund 405 $51,049 $23,807 $399,936 $70,832 8,347 186 3,151 629 24,608 - - - $84,004 $23,993 $403,087 $71,461 $67,096 $ - $ - $1,430 494 1,238 - - 89 68,828 0 0 1,519 15,176 23,993 403,087 69,942 15,176 23,993 403,087 69,942 $84,004 $23,993 $403,087 $71,461 ' Statement 27 Capital Improvement General Capital Huset Park Capital Capin Capital Government Improvement Hazardous Improvement Infrastructure Equipment Improvement Buildings Parks Cleanup Projects Replacement Replacement Totals Fund 408 Fund 411 Fund 412 Fund 413 Fund 415 Fund 430 Fund 431 1992 1991 $19,876 $281,785 $356,825 $35,438 $92,220 $301,412 $2,866,348 $4,499,528 $3,631,273 ' - - - - 3,863 - - 12,210 4,308 ' - - - 2,288 - - 2,288 1,591 _ 73,962 - 73,962 77,005 357,942 - 357,942 475,730 2,205 2,801 277 214 207 21,906 31,576 32,797 147,438 199,186 --=- --=- - - - - 24,608 - ' $19,876 $283,990 $359,626 $35,715 $530,489 $3�6� $2,888,254 $514 $4,5 $ - $90 $ - $ - $68,616 $20,156 494 15,349 36 = 1,363 486 - 199,186 2,418 - - - - 431,904 - - 431,904 554,326 0 0 0 0 432,030 0 0 502,377 791,921 1 - - - - - - 528,739 19,876 283,990 359,626 35,715 98,459 301,619 2,888,254 4,499,737 3,248,668 19,876 283,990 359,626 35,715 98,459 301,619 2,888,254 4,499,737 3,777,407 $19,876 $283,990 $359,626 $35,715 $530,489 $301,619 $2,888,254 $5,002,114 $4,569,328 i 101 in CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL PROJECT FUND ' COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Faded December 31, 1992 With Comparative Totals For The Year Ended December 31, 1991 ' Revenues: Special assessments Interest Other revenues: Miscellaneous Contributions Total revenues Expenditures: Other project expenditures Revenue over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers (out) Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance (deficit) - January 1 Fund balance - December 31 102 386,384 386,384 1,459 24,680 4,926 296,069 - 2,700 13,481 90,315 1 1,459 21,980 (8,555) 3,863 3,863 0 0 0 94,178 1,459 21,980 (8,555) (79,002) 22,534 381,107 78,497 $15,176 $23,993 $403,087 $69,942 Water Downtown Capital Surface Senior Parldng Improvement Management Housing Maintenance Fund 401 Fund 403 Fund 404 Fund 405 - 1,459 24,680 4,926 386,384 386,384 1,459 24,680 4,926 296,069 - 2,700 13,481 90,315 1 1,459 21,980 (8,555) 3,863 3,863 0 0 0 94,178 1,459 21,980 (8,555) (79,002) 22,534 381,107 78,497 $15,176 $23,993 $403,087 $69,942 Statement 28 103 Capital Improvement General Capital Huset Park Capital Capital Capital Government Improvement Hazardous Improvement Infrastructure Equipment Improvement Buildings Parks Cleanup Projects Replacement Replacement Totals Fund 408 Fund 411 Fund 412 Fund 413 Fund 415 Fund 430 Fund 431 1992 1991 $ - $ - $ - $ - $167,834 $ - $ - $167,834 $181,373 - 17,275 21,938 2,172 1,678 1,619 165,171 240,918 322,039 - - 4,108 - 8,851 - - 399,343 512,678 - - - - - 3,200 $0 17,275 26,046 2,172 178,363 1,619 165,171 808,095 1,019,290 - 5,141 - 23,946 - 131,159 472,496 2,602,364 0 17,275 20,905 2,172 154,417 1,619 34,012 335,599 1,583,074 ' - - - 300,000 140,000 443,863 200,788 ' - - 57,132 - - 57,132 148,912 0 0 0 0 57,132 300,000 140,000 386,731 51,876 0 17,275 20,905 2,172 97,285 301,619 174,012 722,330 (1,531,198) 19,876 266,715 338,721 33,543 1,174 - 2,714,242 3,777,407 5,308,605 $19,876 $283,990 $359,626 $35,715 $98,459 $301,619 $2,888,254 $4,499,737 $3,777,407 103 CH 104 CITY OF COLUMBIA FIGHTS, MINNESOTA ENTERPRISE 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 revenues and expenses associated with services to area residents. Sewer Utility Fund - used to account for revenues and expenses associated with sewer disposal within the City. Refuse Utility Fund - used to account for revenues and expenses associated with organized collection or refuse and recycling in the City. Liquor Fund - used to account for revenues and expenses associated with the operation of two off -sale liquor stores. 105 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET December 31, 1992 With Comparative Totals For December 31, 1991 Statement 29 1 Totals Assets Water Sewer Refuse Liquor 1992 1991 Current assets: Cash and cash equivalents Temporary investments Receivables: Accounts Interest Due from other governmental units, current portion Prepaid expense Inventory, at cost Total current assets Long -term assets: Due from other governmental units, net of current portion Total long -term assets Fixed assets: Land Buildings Improvements other than buildings Machinery and equipment Construction in process Total Less: Accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Contracts payable - retained percentage 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 106 Total liabilities and fund equity $33,669 $761,961 $12,864 $75,348 $883,842 $367,155 708,167 1,210,675 230,235 792,358 2,941,435 3,043,861 247,587 229,285 302,368 103 779,343 681,357 5,603 18,434 2,142 5,968 32,147 25,071 - - 12,916 1,565 14,481 65,878 1,891,257 55,910 - - 55,910 56,821 2,496 - - 404,269 406,765 487,980 997,522 2,276,265 560,525 1,279,611 5,113,923 4,728,123 - 154,516 - - 154,516 156,434 0 154,516 0 0 154,516 156,434 45,223 36,586 - 13,051 94,860 94,960 233,236 45,690 - 189,522 468,448 462,448 2,835,891 3,056,707 2,890 100,093 5,995,581 5,772,595 263,943 437,468 5,447 200,420 907,278 811,805 14,587 59,710 - - 74,297 - 3,392,880 3,636,161 8,337 503,086 7,W,464 7,141,708 1,565,544 1,869,154 2,275 257,694 3,694,667 3,530,460 1,827,336 1,767,007 6,062 245,392 3,845,797 3,611,248 $2,824,858 $4,197,788 $566,587 $1,525,003 $9,114,236 $8,495,805 $52,360 $3,559 - $53 $147,216 $203,188 $271,753 , 595 595 - 17,352 15,193 14 33,037 65,596 57,376 7,082 - - 47,509 54,591 49,576 76,794 18,752 67 228,357 323,970 378,705 403,807 707,072 - - 1,110,879 1,176,109 453,000 - - - 453,000 453,000 856,807 707,072 0 0 1,563,879 1,629,109 546,177 2,031,143 - 2,577,320 3,049,702 1,345,080 1,440,821 566,520 _ 1,296,646 4,649,067 3,438,289 1,891,257 3,4_ 7�1e964 566,520 1,296,646 7,226,387 6,487,991 2,748,064 4,179,036 566,520 1,_296_646 8,790. 8,117,100 $2,824,858 $4,197,788 $,5877 $1,525,003 $9,114,236 $8,495,805 JI CITY OF COLUMBIA HEIGHTS, MINNESOTA ENTERPRISE FUNDS Statement 30 COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1992 With Comparative Totals For The Year Ended December 31, 1991 Operating expenses: Cost of sales and services 618,504 704,124 - - Totals 1,028,385 Water Sewer Refuse Liquor 1992 1991 Operating revenues: Administration 7,975 7,958 6,540 - 22,473 Charges for services: Collection and disposal - - 1,043,886 - 1,043,886 Customer service $6,091 $ - $ - $ - $6,091 $5,236 Penalties 46,773 - - - 46,773 25,043 Sewer service charges - 1,040,730 - - 1,040,730 774,047 Refuse service charge - - 1,449,586 - 1,449,586 1,523,154 Charges for sales: Depreciation 82,010 112,489 816 33,308 228,623 Water 1,169,888 - - - 1,169,888 773,324 Mew 3,662 - - - 3,662 4,624 Liquor - - - 1,376,591 1,376,591 1,372,340 Beer - - - 2,394,101 2,394,101 2,373,551 Wine - - - 420,246 420,246 409,671 Other - - - 631,485 631,485 633,781 Intergovernmental - - 29,856 - 29,856 50,458 Total operating revenues 1,226,414 1,040,730 1,479,442 4,822,423 8,569,009 7,945,229 Operating expenses: Cost of sales and services 618,504 704,124 - - 1,322,628 1,028,385 Distribution 273,290 195,381 - - 468,671 504,589 Administration 7,975 7,958 6,540 - 22,473 26,664 Collection and disposal - - 1,043,886 - 1,043,886 1,122,048 Recycling - - 267,335 - 267,335 305,061 Hazardous waste - - - - 2,159 Cost of goods sold - - - 3,924,647 3,924,647 3,910,181 Operating expense - - - 516,822 516,822 451,418 Depreciation 82,010 112,489 816 33,308 228,623 242,781 Total operating expenses 981,779 1,019,952 1,318,577 4,474,777 7,795,085 7,593,286 Net income from operations 244,635 20,778 160,865 347,646 773,924 351,943 Nonoperating revenues (expenses): Interest income 43,889 139,434 16,780 46,745 246,848 253,419 Miscellaneous revenues 24 38,682 18 5,909 44,633 9,480 Miscellaneous expenses (40) (3,030) - 1,99 5,067 (1,818) Total nonoperating revenues (expenses) 43,873 175,086 16,798 50,657 286,414 261,081 Net income before operating transfers 288,508 195,864 177,663 398,303 1060 38 613,024 Operating transfers: Operating transfers in 206,075 548,319 - - 754,394 217,278 Operating transfers (out) 257,910 600,154 81,371 202,130 1,141,56 587,420 Total operating transfers (51,835) (51,835) (81,371) (202,130) (397,171) (370,142) Net income 236,673 144,029 96,292 196,173 673,167 242,882 Credit for depreciation on contributed assets 26,294 38,935 - - 65,229 65,229 Retained earnings - January 1 1,628,290 3,289,000 470,228 1,100,473 6,487,991 6,179,880 Retained earnings - December 31 $1,891,257 $3,471,964 $566,520 $1,296,646 $7,226,387 $6,487,991 lU7 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 1992 With Comparative Totals For the Year Ended December 31, 1991 Cash flows from operating activities: Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues Miscellaneous expenses Net cash flows from 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 flows front capital and related financing activities Cash flows from investing activities: Purchase of investments Proceeds from sale and maturity of investments Interest received on investments Net cash flows from investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 1: Statement 31 ' Page 1 of 2 Totals Water Sewer Refuse Liquor 1992 1991 $1,145,412 $987,437 $1,515,854 $4,821,528 $8,470,231 $7,966,363 (728,849) (782,145) (1 ,307057) (4,073,261) (6,892,212) (6,730 ,510) (169,777) (115,729) (1,867) (305 ,379) (592,752) (617,437) 24 38,682 18 5,909 44,633 9,480 (40) (3,030) - (1,997) (5,067) 1,818 246,770 125,215 206,048 446,800 1,024,833 626,078 51,835 51,835 81,371 202,130 387,171 70,142 (215,503) (239,908) (4,832) (6,000) (466,243) (238.938) 1 ,505 1,505 - 215,503 9,908 (4,832) (4,495) 464,738 8,938 (14,815) - (229,123) (488,039) (731,977) (143,861) - 835,969 - - 835,969 - 43,660 136,194 15,470 44,447 239,771 337,880 28,845 972,163 213,653 (443,592) 343,763 194,019 8,277 805,635 (93,808) (203,417) 516,687 211,017 25 ,392 43,674 106,672 278,765 367,155 156,138 $33,669 $761,961 $12,864 $75,348 $883,842 $367,155 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 1992 With Comparative Totals For the Year Ended December 31, 1991 Statement 31 Page 2 of 2 Totals Water Sewer Refuse Liquor 1992 1991 Reconciliation of operating income (loss to Net cash flows from operating activities Operating income $244,635 $20,778 $160,865 $347,646 $773,924 $351,943 Adjustments to reconcile operating income to net cash flows from operating activities: Miscellaneous revenues 24 38,682 18 5,909 44,633 900 Miscellaneous expenses (40) (3,030) - (1,997) (5,067) (1,818) Depreciation expense 82,010 112,489 816 33,308 228,623 242,781 Changes in assets and liabilities: (In crease) decrease in accounts receivable (81,002) (53,293) 36,412 (103) (97,986) (29,181) (increase) decrease in due from other governmental unit - 17,566 36,541 (792) 53,315 51,107 (Increase) decrease in prepaid expenses - 911 - - 911 (5,179) (Increase) decrease in inventory, at cost 39 - - 81,176 81,215 (44,769) Increase (decrease) in accounts payable (1,486) (9,876) (28,473) (28,135) (67,970) 49,847 Increase (decrease) in accrued salaries and withholdings payable 2,344 988 (131) 5,019 8,220 5,120 Increase (decrease) in due to other governmental units 246 - - 4,769 5,015 (3,253) Total adjustments 2,135 104,437 45,183 99,154 250,909 274,135 Net cash flows from operating activities $246,770 $125,215 $206,048 $446,800 $1,024,833 $626,078 1' CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER U7UM FUND BALANCE SHEET December 31, 1992 With Comparative Totals For December 31, 1991 Statement 32 ' Capital Equipment Capital Operating Replacement Construction Totals Account Account Account 1992 1991 Assets Current assets: Cash and cash equivalents Temporary investments Receivables: Accounts Interest Inventory, at cost Total current assets Fixed assets: Land Buildings Improvements other than buildings Machinery and equipment Construction in process Total fixed assets Less accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Liabilities: Accounts payable Accrued salaries and withholdings payable Due to other governmental units Total liabilities Fund Equity: Contributed capital: Property owners Federal funds Total contributed capital Retained earnings: Reserved for capital replacement /construction Unreserved Total retained earnings Total fund equity Total liabilities and fund equity 110 $11,549 $ - $22,120 $33,669 $25,392 204,133 124,548 379,486 708,167 693,352 247,587 - - 247,587 166,585 167 1,029 4,407 5,603 5,374 2,496 - - 2,496 2,535 465,932 125,577 40 6,013 997,522 893,238 2,201,887 125,577 420,600 45,223 - - 45,223 45,223 233,236 - - 233,236 233,236 2,835,891 - - 2,835,891 2,661,821 263,943 - - 263,943 242,580 - - 14,587 14,587 - 3,378,293 0 14,587 3,392,880 3,182,860 1,565,544 - - 1,565,544 1,489,016 1,812,749 0 14,587 1,827,336 1,693,844 $2,278,681 $= 1$420,600 $2,824,858 $2,587,08822 $52,360 $ - $ - $52,360 $53,846 17,352 - - 17,352 15,008 7,082 - - 7,082 6,836 76,794 0 0 76,794 75,690 403,807 - 403,807 430,102 453,000 - - 453,000 453,000 856,807 0 0 856,807 883,102 - 125,577 420,600 546,177 679,674 1,345,080 - - 1,345 080 948,616 1,345,080 125,577 420,600 1,891,257 1, 2,201,887 125,577 420,600 2,748,064 2,511,392 $2,278,681 $125,577 $420,600 $2 $2,587,082 CITY OF COLUMBIA HEIGHTS, MINNESOTA WAS UTILITY FUND Statement 33 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1992 With Comparative Totals For The Year Ended December 31, 1991 Operating revenues: Charges for services: Customer services Penalties Charges for sales: Water sales Meter sales Total operating revenues Operating expenses: Cost of sales and services Distribution Administration Depreciation Total operating expenses Net income from operations Nonoperating revenues (expenses): Capital Capital Equipment Construction Operating Replacement Replacement Totals Account Account Account 1992 1991 $6,091 $ - $ - $6,091 $5,236 46,773 - - 46,773 25,043 1,169,888 - - 1,169,888 773,324 3,66? - 3,662 4,624 1,226,414 0 0 1,226,414 808,227 -_ 618,504 - - 618,504 386,409 273,290 - - 273,290 287,971 7,975 - - 7,975 7,124 82,010 - 82,010 76,933 9_ 81 =779 0 0 981,779 758,437 _._ - 244,635 0 0 244,635 49,790 Interest income 1,311 8,061 34,517 43,889 52,770 Miscellaneous revenues 24 - - 24 1,293 Miscellaneous expenses (40) -_ -_ (40) (127) Total nonoperating revenues (expenses) 1,295 8,061 34,517 43,873' 53,936 Net income before operating transfers 245,930 8,061 34,517 288,508 103,726 Operating transfers: Operating transfers in 191,075 15,000 - 206,075 133,095 Operating transfers (out) 66,83 24,03 167,038 257,910 176,974 Total operating transfers 124,240 9,037 167,038 51,835 43,879 Net income (loss) 370,170 (976) (132,521) 236,673 59,847 Credit for depreciation on contributed assets 26,294 _ _ 26 ,294 26 ,294 Retained earnings - January 1 948,616 126,553. 553,121 1,628,290 1_ ,542149 Retained earnings - December 31 $1,345,080 $125,577 $420,600 � $1,891,257 $1,628,290 111 CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UTILITY FUND STATEMENT OF CASH FLOWS For The Year Faded December 31, 1992 With Comparative Amounts For the Year Ended December 31, 1991 Statement 34 , Reconciliation of operating income to Net cash flows from operating activities Operating income 1992 1991 Cash flows from operating activities: Cash received from customers $1,145,412 $797,160 Cash paid to suppliers for goods and services (728,849) (486,610) Cash payments to employees for services (169,777) (200,355) Miscellaneous revenues 24 1,293 Miscellaneous expenses (40) (127) Net cash flows from operating activities 246,770 111,361 Cash flows from noncapital financing activities: 39 (188) Operating transfers (out) (51,835) (43,879) Cash flows from capital and related financing activities: 2,344 (556) Acquisition of fixed assets (215,503) (124,393) Cash flows from investing activities: 2,135 61,571 Purchase of investments (14,815) (93,351) Interest received on investments 43,660 64,381 Net cash flows from investing activities 28,845 (28,970) Net increase (decrease) in cash and cash equivalents 8,277 (85,881) Cash and cash equivalents - January 1 25,392 111,273 Cash and cash equivalents - December 31 $33,669 $25,392 Reconciliation of operating income to Net cash flows from operating activities Operating income $244,635 $49,790 Adjustments to reconcile operating income to net cash flows from operating activities: Miscellaneous revenues 24 1,293 Miscellaneous expenses (40) (127) Depreciation expense 82,010 76,933 Changes in assets and liabilities: ( Increase) decrease in accounts receivable (81,002) (11,067) (Increase) decrease in inventories 39 (188) (Decrease) in accounts payable (1 +486) (4,266) Increase (decrease) in accrued salaries and withholdings payable 2,344 (556) Increase (decrease) in due to other governmental units 246 (451) Total adjustments 2,135 61,571 Net cash flows from operating activities $246,770 $111,361 112 CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND BALANCE SHEET December 31, 1992 With Comparative Totals For December 31, 1991 Assets Current assets: Cash and cash equivalents Temporary investments Receivables: Accounts Interest Due from other governmental units, current portion Prepaid expense Total current assets Long -term assets: Due from other governmental units, net of current portion Fixed assets: Land Buildings Improvements other than buildings Machinery and equipment Construction in process Total fixed assets Less accumulated depreciation Net fixed assets ' Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Accrued salaries and withholdings payable Total liabilities Fund equity: Contributed capital: Customers Retained earnings: Reserved for capital replacement /construction Unreserved Total retained earnings ' Total fund equity Total liabilities and fund equity Statement 35 Capital Equipment Capital Operating Replacement Construction Totals Account Account Account 1992 1991 $19,637 $ - $742,324 $761,961 ($43,674) - 172,269 1,038,406 1,210,675 2,046,644 229,285 - - 229,285 175,992 - 1,507 16,927 18,434 15,195 16,274 - - 16,274 15,648 55,910 - - 55,910 56,821 321,106 173,776 1,797,657 2,292,539 2,266,626 2,147,893 173,776 1,857,367 4,179,036 138,242 - - 138,242 156,434 $4,062,647 -�'ii 36.586 - - 36,586 36,586 45,690 - - 45,690 45,690 3,056,707 - - 3,056,707 3,007,791 437,468 - - 437,468 366,685 - - 59,710 59,710 - 3,576,451 0 59,710 3,636,161 3,4 1,869,154 - - 1,869,154 1,817,165 1,707,297 0 59,710 1,767,007 1,639,587 $2,166,645 $173,776 $1,857,367 $4,197,788 $4,062,647 $3,559 $ - $ - $3,559 $13,435 15,193 - - 15,193 14,205 18,752 0 0 18,752 27,640 707,072 - - 707,072 746,007 - 173,776 1,857,367 2,031,143 2,370,028 1,440,821 - - 1,440,821 918,972 1,440,821 173,776 1,857,367 3,471,964 3,289,000 2,147,893 173,776 1,857,367 4,179,036 4,035,007 $2,166,645 $173,776 $1,857,367 $4,197,788 $4,062,647 -�'ii CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTH TTY FUND Statement 36 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1992 With Comparative Totals For The Year Ended December 31, 1991 Operating revenues: Charges for sales and services: Sewer service charges Operating expenses: Cost of sales and services Distribution Administration Depreciation Total operating expenses Net income (loss) from operations Nonoperating revenues (expenses) Capital Equipment Capital Operating Replacement Construction Totals Account Account Account 1992 1991 $1,040,730 $ - $ - $1,040,730 $774,047 704,124 - - 704,124 641,976 195,381 - - 195,381 216,618 7,958 - - 7,958 6,988 112,489 - - 112,489 132,472 1,019,952 0 0 1,019,952 998,054 20,778 0 0 20,778 2( 24,007) Interest income - 11,800 127,634 139,434 156,438 Miscellaneous revenues 18,682 - 20,000 38,682 - Miscellaneous expenses (3,030) - - 3,030 (127) Total nonoperating revenues (expenses) 15,652 11,800 147,634 175,086 156,311 Net income (loss) before operating transfer Operating transfers: Operating transfers in Operating transfers (out) Total operating transfers Net income (loss) Credit for depreciation on contributed assets Retained earnings - January 1 Retained earnings - December 31 114 36,430 11,800 147,634 195,864 67,6 523,319 25,000 - 548,319 84,183 76,835 1_ 28,23). 395,082 600,154 128,05 446,484 103,237 395,082 51,835 43,874 482,914 (91,437) (247,448) 144,029 (111,570) 38,935 - - 38,935 38,935 918,972 265,213 2,104,815 3,289,000 3,361,635 $1,440,821 $173,776 $1,857,367 $3,471,964 $3,289,000 CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1992 With Comparative Amounts For the Year Ended December 31, 1991 Statement 37 Cash flows from operating activities: 1992 1991 Cash received from customers $987,437 $806,405 Cash paid to suppliers for goods and services (782,145) (763,427) Cash payments to employees for services (115,729) (127,916) Miscellaneous revenues 38,682 _ Miscellaneous expenses (3,030) _ (127) Net cash flows from operating activities 125,215 (85,065) Cash flows from noncapitai financing activities: (53,293) (4,488) Operating transfers (out) (51,835) (43,874) Cash flows from capital and related financing activities: 911 (5,179) Acquisition of fixed assets (239,908) (57,310) Cash flows from Investing activities: 988 31 Purchase of investments 104,437 (46,644) Proceeds from sale and maturity of investments 835,969 _ Interest received on investments 136,194 202,290 Net cash flows from investing activities 972,163 155,646 Net increase ( decrease) in cash and cash equivalents 805,635 (30,603) Cash and cash equivalents - January 1 (43,674) (13,071) Cash and cash equivalents - December 31 $761,961 ($43,674) Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) $20,778 ($224,007) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues 38,682 - Miscellaneous expenses (3,030) (127) Depreciation expense 112,489 132,472 Changes in assets and liabilities: (Increase) decrease in accounts receivable (53,293) (4,488) (Increase) decrease in due from other governmental units 17,566 37,638 (Increase) decrease in prepaid expense 911 (5,179) Increase (decrease) in accounts payable (9,876) (21,405) Increase (decrease) in accrued salaries and withholdings payable 988 31 Total adjustments 104,437 138,942 Net cash flows from operating activities $125,215 ($85,06 115 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND Statement 38 BALANCE SHEET December 31, 1992 With Comparative Amounts For December 31, 1991 Assets Current assets: Cash and cash equivalents Temporary investments Receivables: Accounts Interest Due from other governmental units Total current assets Fixed assets: Improvements other than buildings Machinery and equipment Total fixed assets Less accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Accrued salaries and withholdings payable Total liabilities Fund equity: Retained earnings: Unreserved Total liabilities and fund equity MCI 1992 1991 $12,864 230,235 302,368 2,142 12,916 560,525 2,890 5,447 8,337 2,275 6,062 $566,587 $53 14 67 566,520 $566,587 $106,672 1,111 338,780 832 49,457 496,852 2,890 615 3,505 1,458 2,047 $498,899 $28,526 145 28,671 470,228 $498,899 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE U`fUXrY FUND Statement 39 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1992 With Comparative Amounts For The Year Ended December 31, 1991 ' 1992 1991 Operating revenues: Refuse service ages $1,449,586 $1,523,154 Intergovernmental 29,856 50,458 Total operating revenues 1,479,442 1,573,612 Operating expenses: Administration 6,540 12,552 Collections and disposals 1,043,886 1,122,048 Recycling 267,335 305,061 Hazardous waste - 2,159 Depreciation 816 351 Total operating expenses 1,318,577 1,442,171 ' Net income from operations 160,865 131,441 Nonoperating revenues: Interest income 16,780 8,173 Miscellaneous revenues 18 25 Total nonoperating revenues 16,798 8,198 Net income before operating transfers 177,663 139,639 Operating transfers: Operating transfers (out) (81,371) (67,957) Total operating transfers (81,371) (67,957) Net income 96,292 71,682 Retained earnings - January 1 470,228 398,546 Retained earnings - December 31 $566,520 $470,228 117 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE LrfU Y FUND Statement 40 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1992 With Comparative Amounts For the Year Ended December 31, 1991 Cash flows from operating activities: Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues Net cash flows from 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: Purchase of investments Interest received on investments Net cash flows from investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income to Net cash flows from operating activities Operating income Adjustments to reconcile operating income to net cash flows from operating activities: Miscellaneous revenues Miscellaneous expenses Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in due from other governmental units Increase (decrease) in accounts payable Increase (decrease) in accrued salaries and withholdings payable Total adjustments Net cash flows from operating activities 118 1992 1,515,854 (1,307,957) (1,867) 18 206,048 1991 1,573,874 (1,411,825) (1,500) 25 160,574 t [1 81371 67,95 1 (4,832) (229,123) 15,470 (213,653) (93,808) 106,672 $12,864 $160,865 18 816 36,412 36,541 (28,473) (131) 45,183 $206,048 (1,112) 9,285 8,173 100,790 5,882 $106,672 $131,441 25 351 (13,776) 14,038 28,350 145 29,133 $160,574 I CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND Statement 41 BALANCE SBEET December 31, 1992 With Comparative Amounts For December 31, 1991 Assets Current assets: Cash and cash equivalents Temporary investments Receivables: Accounts Interest Due from other governmental units Inventory, at cost Total current assets Fixed assets: Land Buildings Improvements other than buildings Machinery and equipment Total fixed assets Less accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Contracts payable- retained percentage Accrued salaries and withholdings payable Due to other governmental units Total liabilities Fund equity: Retained earnings: Unreserved tTotal liabilities and fund equity 1992 $75,348 792,358 103 5,968 1,565 404,269 1,279,611 13,051 189,522 100,093 200,420 503,086 257,694 245,392 $1,525,003 $147,216 595 33,037 47,509 228,357 1,296,646 $1,525,003 1991 $278,765 302,754 3,670 773 485,445 1,071,407 13,051 183,522 100,093 201,925 498,591 222,821 275,770 $1,347,177 cow $175,946 28,018 42,740 246,704 1,100,473 $1,347,177 119 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND Statement 42 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1992 With Comparative Totals For The Year Ended December 31, 1991 Operating revenues: Charges for sales: Liquor Beer Wine Other Total operating revenues Operating expenses: Cost of goods sold Operating expense Depreciation Total operating expenses Net income from operations Nonoperating revenues (expenses) Interest income Miscellaneous revenues Miscellaneous expenses Total nonoperating revenues (expenses) Net income before operating transfers Operating transfers: Operating transfers (out) Total operating transfers Net income Retained earnings - January 1 Retained earnings - December 31 120 398,303 437,355 (202,130) Heights Totals Top Valu Liquor 1992 1991 222,923 $1,124,946 $251,645 $1,376,591 $1,372,340 1,776,771 617,330 2,394,101 2,373,551 363,299 56,947 420,246 409,671 507,949 123,536 631,485 633,781 3,772,965 1,049,458 4,822,423 4,789,343 3,099,049 825,598 3,924,647 3,910,181 405,643 111,179 516,822 451,418 21,534 11,774 33,308 33,025 3,526,226 948,551 4,474,777 4,394,624 $246,739 $100,907 347,646 394,719 46,745 36,038 5,909 8,162 (1,997) (1,564) 50,657 42,636 398,303 437,355 (202,130) (214,432) (202,130) (214,432) 196,173 222,923 1,100,473 877,550 $1,296,646 $1,100,473 t CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1992 With Comparative Amounts For the Year Ended December 31, 1991 Statement 43 1992 1991 Cash flows from operating activities: I Cash received from customers $4,821,528 $4,788,924 Cash paid to suppliers for goods and services (4,073,261) (4,068,648) Cash payments to employees for services (305,379) (287,666) Miscellaneous revenues 5,909 8,162 Miscellaneous expenses (1,997) (1,564) Net cash flows from operating activities 446,800 439,208 Cash flows from noncapital financing activities: Operating transfers (out) (202,130) (214,432) Cash flows from capital and related financing activities: Acquisition of fixed assets (6,000) (57,235) ' Disposition of fixed assets 1,505 Net cash flows from capital and related financing activities (4,495) (57,235) Cash flows from investing activities: Purchase of investments (488,039) (2,754) Interest received on investments 44,447 61,924 Net cash flows from investing activities (443,592) 59,170 Net increase (decrease) in cash and cash equivalents (203,417) 226,711 1 Cash and cash equivalents - January 1 278,765 52,054 Cash and cash equivalents - December 31 $75,348 $278,765 Reconciliation of operating income to Net cash flows from operating activities Operating income $347,646 $394,719 Adjustments to reconcile operating income to net cash flows from operating activities: Miscellaneous revenues 5,909 8,162 Miscellaneous expenses (1,997) (1,564) Depreciation expense 33,308 33,025 Changes in assets and liabilities: ( Increase) decrease in accounts receivable (103) 150 (Increase) decrease in due from other governmental units (792) (569) (Increase) decrease in inventory, at cost 81,176 (44,581) Increase (decrease) in accounts payable (28,135) 47,168 Increase (decrease) in accrued salaries and withholdings payable 5,019 5,500 Increase (decrease) in due to other governmental units 4,769 (2,802) Total adjustments 99,154 44,489 Net cash flows from operating activities $446,800 $439,208 121 CH 122 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE 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 December 31, 1992 With Comparative Totals For December 31, 1991 fl Statement 44 1 Central Totals Assets Garage Insurance 1992 1991 -� Current assets: Cash and cash equivalents $28,894 $538,893 $567,787 $100,267 Temporary investments - - - 331,191 Receivables: Machinery and equipment 99,384 - Accounts 52 - 52 3,503 Interest 461 3,562 4,023 3,266 Prepaid expense - 65,999 65,999 64,925 Inventory, at cost 85,886 - 85,886 80,520 Total current assets 115,293 608,454 723,747 583,672 Fired assets: Buildings 309,668 - 309,668 307,888 Improvements other than buildings 121,550 - 121,550 98,629 Machinery and equipment 99,384 - 99,384 97,412 Total fixed assets 530,602 0 530,602 503,929 ' Less accumulated depreciation 182,852 - 182,852 153,781 Net fixed assets 347,750 0 347,750 350,148 Total assets $463,043 $608,454 $1,071,497 $933,820 Liabilities and Fund Equity Current liabilities: Accounts payable $11,945 $810 $12,755 $17,232 Accrued salaries and withholdings payable 15,191 - 15,191 22,029 Total liabilities 27,136 810 27,946 39,261 Fund equity: Contributed capital: Municipal funds Property 124,196 - 124,196 124,196 owners 64,653 64,653 64,653 Total contributed capital 188,849 0 188,849 188,949 Retained earnings: Reserved for insurance 607,644 607,644 453,191 Reserved for capital improvement 32,260 - 32.260 26,521 Unreserved 214,798 214,798 225,998 Total retained earnings 247,058 607,644 854,702 Total fund equity 435,907 607,644 1,043,551 894,559 Total liabilities and fund equity $463,043 $608,454 $1,071,497 $933,820 124 I CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1992 With Comparative Totals For The Year Ended December 31, 1991 Statement 45 Central Totals Garage Insurance 1992 1991 Operating revenues: Charges for services: Services to departments $99,386 $ - $99,386 $90,068 Use of space 110,049 - 110,049 112,939 Insurance allocation - 63,277 63,277 74,469 Recovery of damages - - - 5,935 Charges for sales: Sales of gasoline 52,111 - 52,111 60,231 Total operating revenues 261,546 63,277 324,823 343,642 Operating expenses: Cost of services and space 243 ,021 - 243,021 286,688 Claims administration - 17,997 17,997 29,539 Claims Insurance deductible 2,971 2,971 124,924 Depreciation 29,071 31,485 - 31,485 29,071 5,440 29,702 Total operating expenses 272,092 52,453 324,545 476,293 Net income (loss) from operations (10,546) 10,824 278 (132,651) Nonoperating revenues Interest income 3,609 27,903 31,512 32,067 Miscellaneous revenues 1,476 115,726 117,202 22,616 Total nonoperating revenues 5,085 143,629 148,714 54,683 Net income (loss) before operating transfers (5,461) 154,453 148,992 (77,968) Operating transfers: Operating transfers in 4,000 - 4,000 42,800 I Operating transfers (out) (4,000) - (41000) (11,499) Total operating transfers 0 0 0 31,301 Net income (loss) (5,461) 154,453 148,992 (46,667) Retained earnings - January 1 252,519 453,191 705,710 752,377 Retained earnings - December 31 $247,058 $607,644 $854,702 $705,710 125 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For The Year Faded December 31. 1992 With Comparative Totals For the Year Ended December 31, 1991 Cash flows from operating activities: Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues Net cash flows from operating activities Cash flows from noncapital financing activities: Operating transfers in Operating transfers (out) Net cash flows from noncapital financing activities t Statement 46 1 Central 117,202 Totals Garage Insurance 1992 1991 29,071 Changes in assets and liabilities: - $264,752 $63,522 $328,274 $343,014 (122,752) (66,374) (189.126) (333.223) (124,103) - (124,103) (113,736) 1,476 115,726 117,202 22.616 19 ,373 112,874 132,247 (81,329) 4,000 - 4,000 42,800 (4,000) - (4,000) (11,499) 0 0 0 31,301 Cash flows from capital and related financing activities: Acquisition of fixed assets (26,673) - (26,673) _ (5,005) Net cash flows from capital and related financing activities (26,673) 0 (26,673) (5,005) Cash flows from investing activities: Purchase of investments Proceeds from sale and maturity of investments Interest earned on investments Net cash flows from investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income (lass) to Net cash flows from operating activities Operating Income (loss) 24,718 306,473 331,191 - 3,430 27,325 30,755 38,258 28,148 333,798 361,946 27,067 t 1 t 20,848 446,672 467,520 (27.966) , 8,046 92,221 100,267 128,233 $28,894 w $538,893 $567,787 $100267 ($10,546) $10,824 $278 ($132,651) Adjustments to reconcile operating income (loss) to net 117,202 cash flows from operating activities: - Miscellaneous revenues 1,476 Depreciation expense 29,071 Changes in assets and liabilities: - ( Increase) decrease in accounts receivable 3,206 (Increase) decrease in inventory (5 .366) (Increase) decrease in prepaid expense _ Increase (decrease) in accounts payable 8,370 Increase (decrease) in accrued salaries and withholdings payable (6,838) Total adjustments 29,919 s 115,726 117,202 22,616 - 29,071 29,702 245 3,451 (628) - (5,366) (351) (1,074) (1,074) 5,761 (12,847) (4,477) (10,445) - (6,838) 4,667 102,050 131,969 51,322 Net cash flows from operating activities $19 ,373 $112,874 $132,247 ($81,329) t t 126 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA CENTRAL GARAGE FUND BALANCE SHEET December 31, 1992 With Comparative Totals For December 31, 1991 Statement 47 Capital Equipment Operating Replacement Totals Account Account 1992 1991 Assets Current assets: Cash and cash equivalents Temporary investments Receivables: Accounts Interest Inventory, at cost Total current assets Fixed assets: Buildings Improvements other than buildings Machinery and equipment Total fixed assets Less accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Accrued salaries and withholdings payable Total 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 ($3,144) $32,038 $28,894 $8,046 - 24,718 52 - 52 3,258 239 222 461 282 85,886 - 85,886 80,520 83,033 32,260 115,293 116,824 214,798 309,668 - 309,668 307,888 121,550 - 121,550 98,629 99,384 - 99,384 97,412 530,602 0 530,602 503,929 182,852 - 182,852 153,781 347,750 347,750 _ 350,148 $430,783 $32,260 $463,043 $466,972 $11,945 $ - $11,945 $3,575 15,191 - 15,191 22,029 27,136 0 27,136 25,604 124,196 - 124,196 124,196 64,653 - 64,653 64,653 188,849 0 188,849 188,849 - 32,26() 32,260 26,521 214,798 __ 214,798 225,998 214,798 32,260 247,058 403,647 32,26_0 435,907 _ 441,368 $430,783 $32,260 $463,043 127 I� CITY OF COLUMBIA HEIGHTS, MINNESOTA CENTRAL GARAGE FUND Statement 48 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1992 With Comparative Totals For The Year Ended December 31, 1991 t t 1 128 1 Capital Equipment Operating Replacement Totals Operating revenues: Account Account 1992 1991 -- ' Charges for services: Services to departments $99,386 $ - $99,386 $90,068 Use of space 110,049 - 110,049 112,939 ' Charges for sales: Sales of gasoline 52,111 - 52,111 60,231 Total operating revenues 261,546 0 261,546 263,238 Operating expenses: Cost of services and space 243,021 - 243,021 286,688 , Depreciation 29,071 29,071 29,702 Total operating expenses 272,092 0 272,092 3631, 90 Net (loss) from e_ operations (10,546) 0 (10,546) (53,152) Nonoperating revenues Interest income 1,870 1,739 3,609 2,765 Miscellaneous revenues 1,476 - 1,476 9,361 Total nonoperating revenues 3,346 1,739 5,085 12,126 ' Net income (loss) before operating transfers (7,200) 1,739 (5,461) (41,026) Operating transfers: Operating transfers in - 4,000 4,000 42,800 Operating transfers (out) (4,000) (4,000) (51000) Total operating transfers (4,000) 4,000 0 37,800 Net income (loss) (11,200) 5,739 (5,461) (3,226) Retained earnings - January 1 225 998 26,521 252,519 255,745 Retained earnings - December 31 $214,798 $32,260 $747,058 $252,519 i t t 1 128 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA CENTRAL GARAGE FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1992 With Comparative Amounts For the Year Ended December 31, 1991 Statement 49 Cash flows from investing activities: Purchase of investments 1992 1991 Cash flows from operating activities: 24,718 _ Cash received from customers $264,752 $259,980 Cash paid to suppliers for goods and services (122,752) (183,415) Cash payments to employees for services (124,103) (113,736) Miscellaneous revenues 1,476 9,361 Net cash flows from operating activities 19,373 (27,810) Cash flows from noncapital financing activities: Operating transfers in 4,000 42,800 Operating transfers (out) (4,000) (5,000) Net cash flows from noncapital financing activities 0 37,800 Cash flows from capital and related financing activities: Acquisition of fixed assets (26,673) (5,005) Depreciation expense 29,071 29,702 Cash flows from investing activities: Purchase of investments (4,718) Proceeds from sale and maturity of investments 24,718 _ Interest earned on investments 3,430 2,483 Net cash flows from investing activities 28,148 (2,235) Net increase in cash and cash equivalents 20,848 2,750 Cash and cash equivalents - January 1 8,046 5,2% Cash and cash equivalents - December 31 $28,894 $8,046 Reconciliation of operating (loss) to Net cash flows from operating activities Operating (loss) ($10,546) ($53,152) Adjustments to reconcile operating (loss) to net cash flows from operating activities: Miscellaneous revenues 1,476 9,361 Depreciation expense 29,071 29,702 Changes in assets and liabilities: (Increase) decrease in accounts receivable 3,206 (3,258) (Increase) decrease in inventory, at cost (5,366) (351) Increase (decrease) in accounts payable 8,370 (14,779) Increase (decrease) in accrued salaries and withholdings payable (6,838) 4,667 Total adjustments 29,919 25,342 tNet cash flows from operating activities $19,373 ($27,810) 129 CITY OF COLUMBIA HEIGHTS, MINNESOTA INSURANCE FUND Statement 50 BALANCE SHEET December 31, 1992 With Comparative Amounts For December 31, 1991 Assets Current assets: Cash and cash equivalents Temporary 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 130 1992 1991 $538,893 $92,221 - 306,473 - 245 3,562 2,984 65,999 64,925 $608,454 $466,848 $810 $13,657 607,644 453,191 $608,454 $466,848 CITY OF COLUMBIA HEIGHTS, MINNESOTA INSURANCE FUND Statement 51 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Faded December 31, 1992 With Comparative Amounts For The Year Ended December 31, 1991 1 131 1992 1991 Operating revenues: Insurance allocation $63,277 $74,469 Recovery of damages - 5,935 Total operating revenues 63,277 80,404 Operating expenses: Claims administration 17,997 29,539 Supplies and services 2,971 - Claims 27,783 124,924 Insurance deductible 3,702 5,440 Total operating expenses 52,453 159,903 Net income (loss) from operations 10,824 (79,499) Nonoperating revenues Interest income 27,903 29,302 Miscellaneous revenues 115,726 13,255 Total nonoperating revenues 143,629 42,557 Net income (loss) before operating transfers 154,453 (36,942) Operating transfers Operating transfers (out) - (6,499) Total operating transfers 0 (6,499) Net income (loss) 154,453 (43,441) Retained earnings - January 1 453,191 496,632 Retained earnings - December 31 $607,644 $453,191 1 131 CITY OF COLUMBIA HEIGHTS, MINNESOTA INSURANCE FUND Statement 52 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1992 With Comparative Amounts For the Year Ended December 31, 1991 Cash flows from operating activities: Cash received from damages Cash paid to suppliers for goods and services Miscellaneous revenues Net cash flows from operating activities Cash flows from noncapital financing activities: Operating transfers (out) Cash flows from investing activities: Purchase of investments Proceeds from sale and maturity of investments Interest earned on investments Net cash flows from investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues Changes in assets and liabilities: ( Increase) decrease in accounts receivable (Increase) decrease in prepaid expense Increase (decrease) in accounts payable Total adjustments Net cash flows from operating activities 132 1992 1991 $63,522 $83,034 (66,374) (149,808) 115,726 13,255 112,874 (53,519) (6,499) - (6,473) 306,473 - 27,325 35,775 333,798 29,302 446,672 (30,716) 92,221 122,937 $538,893 $92,221 $10,824 ($79,499) 115,726 13,255 245 2,630 (1,074) 5,761 (12,847) 4,334 102,050 25,980 $112,874 ($53,519) TRUST AND AGENCY FUNDS Trust and Agency Funds are used to account for assets held by a government in a trustee or agent capacity for individuals, private organizations, other governments and/or other funds. Agency 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. Trust Funds: Flex Benefit - used to account for contributions by employees and related expenditures for flexible benefits. Compensated Absences - used to account for funds that have been set aside by the City Council for compensated absences. 133 CITY OF COLUMBIA HEIGHTS, MINNESOTA FIDUCIARY FUNDS COMBINING BALANCE SHEET December 31, 1992 Statement 53 1 Assets Cash and cash equivalents Receivables Assets held by deferred compensation trustee Total assets Liabilities and Fund Balance Liabilities: Accounts payable Deferred compensation payable to employees Deposits Other liabilities Total liabilities Fund balance: Unreserved: Designated for compensated absences Undesignated Total fund balance Total liabilities and fund balance 134 Expendable Trust Flex Compensated Agency Benefit Absences Funds Total $ - $100,000 $12,789 $112,789 - - 318 318 - - 1,195,530 1,195,530 $0 $100,000 $1,208,637 $1,308,637 $2,370 $ - $ - $2,370 - - 1,195,530 1,195,530 10,475 10,475 2,632 2,632 2,370 0 1,208,637 1,211,007 100,000 - 100,000 (2,370) - - (2,370) (2,370) 100,000 0 97,630 $0 $100,000 $1,208,637 $1,308,637 I CITY OF COLUMBIA HEIGHTS, MINNESOTA EXPENDABLE TRUST FUNDS Statement 54 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1992 �. Flex Compensated Benefit Absences Total Revenues $ _ $ _ $ _ Expenditures: Other services and charges 2,370 _ 2,370 Revenues over (under) expenditures (2,370) 0 (2,370) Other financing sources: Operating transfers in - 100,000 100,000 ' Net increase (decrease) in fund balance (2,370) 100,000 97,630 Fund balance - January 1 _ _ Fund balance (deficit) - December 31 ($2,370) $100,000 $97,630 r 135 CITY OF COLUMBIA HEIGHTS, MINNESOTA FIDUCIARY FUNDS COMBWNG STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - ALL AGENCY FUNDS For The Year Ended December 31, 1992 Statement 55 1 Balance Balance T l All Ag Fti 1/1/92 Additions Deletions 12/31/92 otaency nds 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 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 Permit',Rurchar&C Agency and Assets Cash and investments - general account Liabilities SAC/SUR charges payable Escrow Agengy Fund Assets Cash and cash equivalents: General account Payroll account Accounts receivable Total assets Liabilities Deposits Other liabilities: Withholdings payable Payroll deductions payable Employee activity Total liabilities $9,973 907 10,880 222 940,934 $952,036 $940,934 6,632 4,470 $952,036 $4,575,794 2,542,077 7,117,871 11,349 254,596 $7,383,816 $254,596 4,443 2,174,308 $2,433,347 $4,573,978 2,541,984 7,115,962 11,253 $7,127,215 600 2,176,146 $2,176,746 $11,789 1,000 12,789 318 1,195,530 $1,208,637 $1,195 ,530 10,475 2,632 $1,208,637 $940,934 _ $254,596 $ - $1,195,530 i t 1 $940,934 $254,596 $ - $1,195,530 1 $111 $3,653 $2,986 $778 $111 $9,862 907 222 $10,991 $6,632 25 2,621 1,713 $10,991 $3,780 $4 ,572,141 2,542,077 11,349 $7,125,567 $4,443 1,434,602 730,476 5,450 $2,174,971 $3,113 $4 ,570,992 2,541,984 11,253 $7,124,229 M 1,434,567 732,751 5,715 $2,173,633 $778 $11,011 1,000 318 $12,329 $10,475 346 1,448 $12,329 t t t 136 1 HOUSING AND REDEVELOPMENT AUTHORITY COMPONENT UNIT 137 CITY OF COLUMBIA HEIGHTS, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY FUNDS COMBINING BALANCE SHEET December 31, 1992 With Comparative Totals For December 31, 1991 Assets 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 compensated absences Total assets Liabilities, Equity and Other Credits Liabilities: Accounts payable Accrued salaries and withholdings payable Deferred compensation payable Due to other governmental units Due to other funds Due to primary government Deferred revenue Deposits Insurance and taxes in escrow Compensated absences payable Other liabilities: Accreted liability for future program income Total liabilities Equity and other credits: Investment in general fixed assets Fund balance: Reserved for community development Reserved for Parkview Villa South maintenance Unreserved: Designated Undesignated Total equity and other credits Total liabilities, equity and other credits 138 Governmental Fund Types Special Revenue Anoka County Community HRA Low Income Development General Housing Block Grant $582,223 $165,261 $ - 5,066 - - 3,362 - - 159 105 - 410,106 - - 7,210 - 53,822 63,152 - 5,511 4,466 - - 5,347 2,502 _ 21,113 - 68,853 $1 $167,868 118,929 $ $8,175 $30,484 $2,610 5,462 1,790 _ 15,175 15,715 - 3,144 5,511 63,152 - 5,466 - 24,608 423,003 2,583 - 5,060 5,205 _ 6,634 68,853 474,486 118,929 99,215 165,139 166,961 23,540 _ - 272,078 48,939 28,971 627,718 48,939 $1,102,204 $167,868 $128 ®� t Fiduciary Fund Type Account Groups Agency 172,111 $172,111 172,111 172,111 0 $172,111 General Fixed Assets 5,066,689 $5,066,689 General Lang -Term Debt 9,590 $9,590 1992 $747,484 5,066 3,362 264 410,106 61,032 68,663 4,466 7,849 172,111 5,066,689 89,966 9,590 $6,646,648 Totals Statement 56 1991 $727,652 278 3,527 469 399,404 200,951 32,173 6,303 5,807 154,615 5,032,349 98,413 9,874 $6,671,815 $41,269 $212,791 - - 7,252 7,225 - - 172,111 154,615 - - 34,034 34,069 " - 68,663 32,173 - - 30,074 15,974 - - 425,586 409,979 - - 10,265 9,105 - - 6,634 7,121 - 9,590 9,590 9,874 0 5, 066,689 5,066,689 $5,066,689 9,590 0 $9,590 68,853 874,331 5,066,689 165,139 166,961 23,540 349,988 5,772,317 $6,646,648 892,926 5,032,349 160,187 118,770 467,583 5,778,889 $6,671,815 CITY OF COLUMBIA HEIGHTS, NIINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY FUNDS Statement 57 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES For The Year Ended December 31, 1992 With Comparative Totals For The Year Ended December 31, 1991 HRA Special Revenue Anoka County Community Low Income Development Totals HRA General Housing Block Grant 1992 1991 Revenues: Taxes $58,723 $ - $ - $58,723 $57,707 Intergovernmental 55,706 19,955 177,634 253,295 531,737 Interest 49,611 5,530 - 55,141 57,318 Other revenues: Rents 175,302 215,973 - 391,275 271,608 Miscellaneous 118,892 1,898 - 120,790 23,510 Reimbursements/contributions 18,092 - - 18,092 1,782,270 Total revenues 476,326 243,356 177,634 897,316 2,724,150 Expenditures: Administration: Personal services 252,171 42,823 - 294,994 265,343 Other services and charges: Utilities and maintenance operations 98,068 219,468 - 317,536 146,412 Other expenditures: Loans made 25,000 - - 25,000 - Cost of real estate sold 98,413 - - 98,413 - CDBG program expenditures - - 184,361 184,361 90,277 Miscellaneous - 953 - 953 Residual receipts payments - - - - 5,582 Capital outlay: Property acquisitions/ capital improvements - 16,971 - 16,971 2,084,671 Debt service _ 125,905 Total expenditures 473,652 280,215 184,361 938,228 2,718,190 Revenues over (under) expenditures 2,674 36,859 6,72 40,912 5,960 Other financing sources: HUD forgiveness of loan principal and interest - - _ 183,617 Total other financing sources 0 0 0 0 183,617 Net increase (decrease) in fund balance 2,674 (36,859) (6,727) (40,912) 189,577 Fund balance - January 1 625,044 85,798 35,698 746,540 556,963 Fund balance - December 31 $627,718 $48,939 $28,971 $705,628 $74 140 GENERAL FIXED ASSETS ACCOUNT GROUP The City maintains a separate account group which contains the fixed assets used in the governmental fund type operations. They are assets of the City as a whole and not of individual funds. 141 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPARATIVE SCHEDULE OF GENERAL FD(ED ASSETS BY SOURCE For The Year Ended December 31, 1992 Statement 58 142 Balance Balance General Fixed s otc 1/1/92 Additions Deletions 12/31/92 Land $3,132,099 $ - $ - $3,132,099 Buildings 3,013,217 19,058 - 3,032,275 Improvements other than buildings 1,364,692 75,793 - 1,440,485 Machinery and equipment 3,881,445 249,502 60,888 4,070,059 Construction in process 964,114 443,470 1,158,717 248,867 Total general fixed assets $12,355,567 $787,823 $1,219,605 $11,923,785 Investment in General Fixed Assets by Sow General Obligation Bonds: Library Bonds of 1966 $90,000 $ _ $ - $90,000 Municipal Building Bonds of 1959 150,000 - - 150,000 Park Bonds of 1962 325,000 - - 325,000 City Garage Bonds of 1972 510,000 - - 510,000 Capital Improvement Bonds of 1976 929,475 - - 929,475 Total general obligation bonds 2,004,475 0 0 2,004,475 Grants: Federal E.D.A. and H.U.D. 526,290 - - 526,290 State 267,203 - - 267,2031 Total grants 793,493 0 0 793,493 Revenue sharing: Federal 1,752,317 - - 1,752,317 Anoka County 51,550 - - 51,550 Total revenue sharing 1,803,867 0 0 1,803,867 Balance from current revenue and contributions 7,753,732 787,823 1,219,605 7,321,950 Total investments in fixed general assets $12,355,567 $787,823 $1,219,605 $11,923,785 142 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF CHANGES IN GENERAL FDCrD ASSETS Statement 59 BY FUNCTION AND ACT rvr= For The Year Ended December 31, 1992 r 1 143 Balance Balance 1/1/92 Additions Deletions 12/31/92 General Government: Council $23,142 $178 $755 $22,565 Manager 22,564 1,159 - 23,723 Finance and elections 160,819 68,413 799 228,433 Assessing 15,500 - 755 14,745 Planning 679 - - 679 General government buildings 1,093,827 7,857 - 1,101,684 Total General Government 1,316,531 77,607 2,309 1,391,829 Public Safety: Police/animal/civil defense 307,011 47,361 1,347 353,025 Fire 386,285 19,074 - 405,359 Inspections 20,380 - - 20,380 Total Public Safety 713,676 66,435 1,347 778,764 Public Works: Engineering 198,351 17,066 11,102 204,315 Maintenance 1,601,371 51,115 10,000 1,642,486 Total Public Works 1,799,722 68,181 21,102 1,846,801 Other Departments: Sanitation 652 - - 652 Parks and Recreation 7,204,266 117,827 32,310 7,289,783 Library 338,102 14,003 3,820 348,285 Cable television 18,504 300 - 18,804 Construction in process 964 ,114 443,470 1,158,717 248,867 Total Other Departments 8,525,638 575,600 1,194,847 7,906,391 Total general fixed assets $12,355,567 $787,823 $1,219,605 $11,923,785 1 143 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHMULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 1992 General Government: Council Manager Finance and elections Assessing Planning General government buildings Total General Government Public Safety: PoliceAnimal/civil defense Fire Inspections Total Public Safety Public Works: Engineering Maintenance Total Public Works Other Departments: Sanitation Parks and recreation Library Cable television Construction in process Total Other Departments Totals 144 Statement 60 1 Improvements Machinery Other Than and Construction Land Buildings Buildings Equipment In Process Total $ - $ - $ - $22,565 $ - $22,565 - - - 23,723 - 23,723 - - - 228,433 - 228,433 - - - 14,745 - 14,745 - - - 679 - 679 110,920 911,221 19,396 60,147 - 1,101,684 110,920 911,221 19,396 350,292 0 1,391,829 - - 1,710 351,315 - 353,025 - 1,998 2,199 401,162 - 405,359 - - - 20,380 - 20,380 0 1,998 3,909 772,857 0 778,764 - 2,820 2,801 198,694 - 204,315 - 18,750 561,894 1,061,842 - 1,642,486 0 21,570 564,695 1,260,536 0 1,846,801 - - - 652 - 652 3,000,179 1,899,222 852,485 1,537,897 - 7,289,783 21,000 198,264 - 129,021 - 348,285 - - - 18,804 - 18,804 - - - - 248,867 248,867 3,021,179 2,097,486 852,485 1,686,374 248,867 7,906,391 $3,132,099 $3,032,275 $1,440,485 $4,070,059 $248,867 $11,923,785 GENERAL LONG -TERM DEBT ACCOUNT GROUP The General Long -Term Debt Account Group is used to account for the long -term debt of the City other than debt recorded in the Enterprise Fund. 145 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF GENERAL LONG -TERM DEBT December 31, 1992 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 Liability for compensated absences Total available and to be provided for General Long -Term Debt Payable General Obligation Bonds payable Accrued interest on Capital Appreciation Bonds Note payable to HRA Liability for compensated absences payable Total general long -tern debt payable 146 Statement 61 $8,905,141 10,514,070 15,982 343,397 $19,778,590 $19,059,721 359,490 15,982 343,397 $19,778,590 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY December 31, 1992 Statement 62 147 General Obligation Bonds Year Principal Interest 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 Total $19,059,721 $7,607,423 147 CH 148 CITY OF COLUMBIA HEIGHTS, MEgNESOTA SUPPLEMENTARY FINANCIAL INFORMATION 1 149 r CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINING SCHEDULE OF BONDS PAYABLE December 31, 1992 L� Interest Issue Maturity Rate Date Date Special Assessment Bonds General Obligation Refunding Im=vement Bonds of 1987 Series A 6/1/87 3/1/95 All bonds maturing on or after March 1, 1992 shall be subject to 3/01 -9/01 redemption and prior payment in whole or in part in inverse order of 5.75% maturity at the option of the issue on March 1, 1991 and interest 6.00% payment date thereafter at a price of the principal amount thereof 6.40% plus accrued interest. 6.60% Total Special Assessment Bonds Tax Increment Bonds G.O. Tax Increment Bonds Series 1984 6/1/84 3/1/94 Bonds maturing on or after March 1, 1992 will be subject to 3/01-9/01 redemption and prepayment at the option of the City in inverse 9.00% order on March 1, 1991 and any interest payment date thereafter at 9.20% 100% of their principal plus accrued interest. 9.40% G.O. Tax Increment Refunding Bonds of 1987 Series A (A) 9/1/85 3/1/02 Bonds maturing on or after March 1. 1995 will be subject to 3/01-9/01 redemption and prepayment in whole or in part in inverse order of 6.00% maturity at the option of the issuer on March 1, 1994 and any 6.20% interest payment date thereafter at a price of the principal amount 6.40% thereof plus accrued interest. 6.60% 6.80% 7.00% 7.10% 7.20% 7.30% 7.40% 7.50% (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. 150 1 Exhibit 1 Page 1 of 2 Remaining Interest Original Annual Serial Balance Balance Paid in Issue Payments 1/1/92 Sold Retired 12/31/92 Current Year $2,230,000 $ - 2,230,000 0 1,070,000 - 9,090,000 $1,185,000 $ - $275,000 $910,000 $66,590 1,185,000 0 275,000 910,000 66,590 440,000 - 135,000 305,000 34,455 8,565,000 - 640,000 7,925,000 569,485 151 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINING SCHEDULE OF BONDS PAYABLE December 31, 1992 Interest Issue Maturity Rate Date Date Tax Increment Bonds (continued) G.O. Taxable Tax Increment Bonds of 1987 6/1/87 2/1/97 All bonds maturing on or after February 1, 1994 shall be subject to 2/01- 8 /01 redemption and prior payment in whole or in part in inverse order of 8.60% maturity at the option of the issuer on February 1, 1993 and any interest payment date thereafter at a price of par plus accrued 8.75% 8.90% interest. 9.00% 9.10% 9.10% G.O. Tax Increment CaWtal Ammiation Bonds of 1990 8/23/90 9/l/09 9/01 6.90% 6.95% 7.00% 7.00% 7.10% 7.10% 7.15% 7.15% G.O. Tax Increment Re an ini: Bonds of 1991 11/21/'91 3/1/02 All bonds maturing on or after March 1, 2000 shall be subject to 3/01-9/01 redemption and prior payment in whole or in part at the option of 4.75% the issuer on March 1, 1999 and on any day thereafter at a price of 5.00% par and accrued interest. 5.10% 5.30% 5.50% 5.60% 5.70% 5.80% Total General Obligation Tax Increment Bonds Total Bond Principal Payable - All Funds 152 Exhibit 1 Page 2 of 2 Remaining Interest Original Annual Serial Balance Balance Paid in Issue Payments 1/1192 Sold Retired 12/31/92 Current Year $1,100,000 ,000 $ - $980,000 $ - $130,000 $850,000 $81,970 2,399,721 - 2,399,721 - - 2,399,721 - 6,670,000 - 6,670,000 - - 6,670,000 264,932 20,329,721 0 19,054,721 0 905,000 18,149,721 950,842 $22,559,721 $0 $20,239,721 $0 $1,180,000 $19,059,721 $1,017,432 153 (1) Payment to North Coast Partners for "pay as you go" payment for 1992 and Anoka County TIF administrative charges ($12,666). 154 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS Exhibit 2 FOR HOUSING AND REDEVELOPMENT AUTHORITY TAX INCREMENT FINANCING DISTRICTS December 31, 1992 Accounted Original Amended For in Current Amount Budget Budget Prior Years Year ® Remaining Sources of Funds: Bond proceeds $8,175,000 $21,964,721 $21,928,724 $ - $35,997 Tax increment received - - 8,839,803 1,108,002 (9,947,805) Interest on invested funds - - 2,111,639 344,307 (2,455,946) Real estate sales 702,630 753,630 1,303,929 - (550,299) EDA grant 1,415,000 1,415,000 1,482,000 - (67,000) Revenue sharing - 60,000 - - 60,000 Land sale Other - 7,000 55,000 - (48,000) - 340,000 2,411,455 8,742 (2,080,197) Total sources of funds 10,292,630 24,540,351 1 38,132,550 1,461,051 (15,053,250) Uses of Funds: Land acquisition 4,800,000 7,034,000 7,357,742 - (323,742) Site improvements or preparation costs 100,000 475,000 164,891 - 310,109 Installation of public utilities and improvements 325,000 478,800 447,296 - 31,504 Other public improvements 2,500,000 4,250,000 3,486,364 - 763,636 Bond payments Principal 8,175,000 15,294,721 12,089,289 895,000 2,310,432 Interest 10,031,325 19,248,682 10,248,361 953,342 8,046,979 Administrative costs 566,000 1,008,500 1,303,826 18,123 (313,449) Other 1,299,000 3,789,399 3,196,035 72,666 (1) 520,698 I Total rues of funds 27,796 25 ,3 51 791 ,5 , 02 38,293,804 1,939,131 11,346,167 Funds remaining (or deficient) ($17,503,695) ($27,038,751) ($161,254) ($478,080) ($26,399,417) (1) Payment to North Coast Partners for "pay as you go" payment for 1992 and Anoka County TIF administrative charges ($12,666). 154 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTE - SOURCES OF FUNDS FOR HOUSING AND REDEVELOPMENT AUTHORITY TAX INCREMENT FINANCING DISTRICTS December 31, 1992 Exhibit 3 Note (1) Sources of Funds Real Estate Land Sales Land Proneril Sale Amount Date Total Cost* Columbia Heights Office Plaza Evenson Properties $133,500 10/81 LaBelle Park Condo No. 1 The Gaughan Companies 137,464 10/81 Columbia Heights Mall Evenson Properties 138,167 2/82 LaBelle Park Condo No. 2 The Gaughan Companies 168,498 3/82 LaBelle Park Condo No. 3 The Gaughan Companies 126,000 9/82 University Heights Housing 1 9/84 Columbia Park Medical Clinic Columbia Park Properties 20,000 11/85 Sullivan Lake Housing 420,000 11/87 Columbia Square Northeast Partners 149,459 8/88 Parkview Villa South Housing 8/90 Totals $1,293,089 $6,116,914 Note (2) Sources of Funds Tax Exempt Obligation Issued on Behalf of Private Entities Development Amount Issue Type Columbia Heights Office Plaza Commercial Redevelopment Evenson Properties $6,000,000 Revenue Bonds Series 1981 Columbia Heights Mall Commercial Redevelopment Evenson Properties 4,000,000 Revenue Bonds Series 1981 4111 Building South Commercial Redevelopment Ruvelson and Associates 775,000 Revenue Bonds Series 1981 LaBelle Park Condominiums Commercial Redevelopment The Gaughan Companies 9,000,000 Revenue Bonds Series 1980 Columbia Park Medical Clinic Commercial Redevelopment Columbia Park Properties 5,000,000 Revenue Bonds Series 1985 Note (3) Sources of Funds * Individual project costs were not available to be used in Note (1) Sources of Funds. A total of all projects has been provided. 155 CH 156 CITY OF COLUMBIA HEIGHTS, MINNESOTA III. STATISTICAL SECTION 157 CITY OF COLUMBIA HEIGHTS, MINNESOTA ASSESSED VALUE, TAX CAPACITY, AND Table 1 ESTIMATED ACTUAL VALUE OF ALL TAXABLE PROPERTY (A) Years 1983 Through 1992 (Unaudited) Ratio of Total Assessed/ Tax Capacity Real Property Personal Property Area Wide Allocation (B) Total Value Assessed/ Estimated Assessed/ Estimated Assessed/ Estimated to Total Fiscal Tax Capacity Actual Tax Capacity Actual Tax Capacity Actual Estimated Year Value Value Value Value Contribution Distribution Value Value Actual Value 1983 $104,783,933 $430,688,578 $1,333,301 $3,100,700 ($4,487,006) $10,544,639 $112,174,867 $433,789,278 25.86% 1984 105,913,390 445,177,400 1,426,869 3,318,300 (5,178,793) $12,001,080 114,162,546 448,495,700 25.45% 1985 108,671,288 461,786,700 1,426,869 3,414,600 (4,695,234) 13,636,552 119,039,475 465,201,300 25.59% 1986 113,721,411 476,771,500 1,500,988 3 ,511,600 (4,407 ,361) 14,264,696 125,079,734 480,283,100 26.04% 1987 114,767,361 484,669,200 1,547,299 3,619 ,300 (5,778,163) 15,650,911 126,187,408 488,288 ,500 25.84% 1988 116,314,660 507,684,800 1,679,868 3,927,600 (5,180,460) 17,871,259 130,685,327 511,612,400 25.54% 1989 14,532,465 522,002,900 208985 4,017,800 (725 ,395) 2,478,750 16,494,805 526,020,700 3.14% 1990 10,022,891 533,586,700 212,505 4,234,500 (712,924) 2,841,497 12,363,969 537,821,200 2.30% 1991 9,901,542 536,614,500 210,051 4,258,500 (510 ,571) 3,290,306 12,891,328 540,873,000 2.38% 1992 9,226,574 537,840,800 207,309 4,447,000 (609,791) 3,067,799 11,891,891 542,287,800 2.19% (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 terns 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. 158 CITY OF COLUMBIA HEIGHTS, MINNESOTA TAX RATES Years 1983 Through 1992 (Unaudited) Table 2 Year (A) City School County Metro Other (B) Total 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 0.15722 0.51364 0.25184 0.03360 0.00954 0.96584 1990 0.20275 0.41329 0.26440 0.03470 0.00988 0.92502 1991 0.19040 0.53249 0.28808 0.03395 0.01102 1.05594 1992 0.22956 0.61847 0.30308 0.03928 0.00937 1.19976 (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. 159 CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY TAX LEVY Table 3 ' Years 1983 Through 1992 (Unaudited) Fiscal City Levy General Police Fire Bonds Year Total Fund Relief Relief and Interest ' 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 1992 3,368,595 3,368,595 - - _ 160 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA TAX LEVIES AND TAX COLLECTIONS Years 1983 Through 1992 (Unaudited) Table 4 * General Fund tax levy has been adjusted by the Homestead and Agricultural Aid (property tax replacement) which is a revenue from other agencies and has been incorporated into Table 6. 161 Ratio of Accumulated Collections Percentage Collections Delinquent of Current of Levy of Prior Ratio Taxes to Years Taxes Collected Years Taxes of Total Accumulated Current Year Total During Fiscal During Fiscal During Fiscal Total Collections Delinquent Year Collected Tax * Period Period Period Collections to Tax Levy Taxes Tax Levy 1983 $1,249,602 $1,208,840 96.7% $26,702 $1,235,542 0.9887:1 $49,644 0.03973:1 1984 1,285,324 1,253,908 97.6% 20,640 1,274,548 0.9916:1 36,290 0.02823:1 1985 1,286,626 1,256,387 97.6% 25,184 1,281,571 0.9961:1 51,764 0.04023:1 1986 1,395,303 1,365,014 97.8% 15,494 1,380,508 0.9894:1 53,140 0.03808:1 1987 1,624,073 1,605,851 98.9% 41,633 1,647,484 1.0144:1 55,101 0.03393:1 1988 1,800,335 1,762,573 97.9% 18,395 1,780,968 0.9892:1 53,374 0.02965:1 1989 1,811,862 1,785,190 98.5% 13,601 1,798,791 0.9928:1 79,005 0.04360:1 1990 2,079,001 2,057,446 99.0% 3,249 2,060,695 0.9912:1 81,891 0.03939:1 1991 2,226,208 2,183,800 98.1% 31,274 2,215,074 0.9950:1 88,809 0.03989:1 1992 2,406,707 2,360,410 98.1% 19,290 2,379,700 0.9888:1 109,305 0.04542:1 * General Fund tax levy has been adjusted by the Homestead and Agricultural Aid (property tax replacement) which is a revenue from other agencies and has been incorporated into Table 6. 161 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Table 5 Years 1983 Through 1992 ' (Unaudited) Deferred Special Assessments Current Current Collections Special Collected Balance Fiscal Assessments % of Delinquent Assessments During at End of , Year Due Amount Levy Collections A) Delinquent Fiscal Period Fiscal Period 1983 $289,011 $153,792 53.2% $130,298 $152,744 $313,682 $1,048,215 1984 299,680 186,803 62.3% 119,372 154,154 236,474 8571906 1985 236,686 126,780 53.6% 140,515 132,031 92,257 640,691 1986 179,812 99,460 55.3% 118,938 110,886 223,656 697,945 1987 201,700 121,911 60.4% 86,741 108,729 236,510 616,994 1988 * 197,641 ' 110,447 55.9% 50,534 149,795 143,565 1,149,826 1989 * 218,860 142,076 64.9% 95,361 97,030 219,588 637,341 1990 * 250,682 180,388 72.0% 74,581 109,928 309,544 591,415 1991 * 252,190 134,588 53.4% 39,016 77,005 210,029 565,432 ' 1992 * 224,922 171,708 76.3% 55,385 73,962 54,141 416,229 * The parking ramp at 4025 Van Buren Street NE was assessed; however, it was not included in this figure. (A) The City bills the property owner directly when a special assessment installment becomes dues. 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. 162 CITY OF COLUMBIA HEIGHTS, MINNESOTA ' GENERAL GOVERNMENTAL REVENUES BY SOURCE (A) Table 6 Years 1983 Through 1992 (Unaudited) ' Special Fiscal Assessments Licenses Inter- Charges for Fines and Miscellaneous 'Year Taxes C and Permits governmental Services Forfeitures Interest (D)_ Total 1983 $1,301,329 $ - $156,410 $2,990,623 $664,689 $51,870 $185,501 $272,650 $5,623,072 r1984 1,807,252 - 215,942 2,470,131 706,135 51,009 222,454 93,363 5,566,286 1985 2352,593 - 139,470 2,625,357 289,116 104,741 265,318 81,461 5,858,056 1986 2,275,432 - 187,809 2,978,923 351,897 108,158 369,277 80,057 6,351,553 1987 2,733,934 - 131,351 2,972,407 408,062 123,813 533,564 560,378 7,463,509 1988 2,924,601 - 163,384 3,738,312 516,018 112,254 596,581 1,179,042 9,230,192 1989 2,839,936 736,662 142,365 4,014,920 611,516 128,188 1,229,806 453,820 10,157,213 ' 1990 3,215,975 463,410 147,587 4,096,113 661,116 123,505 1,039,625 385,013 10,132,344 1991 3,474,483 277,171 164,945 3,249,669 424,546 116,386 395,986 238,615 8,341,801 1992 3,496,720 147,180 125,275 3,504,973 442,636 104,673 562,475 595,015 8,978,947 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. 163 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (A) Years 1983 Through 1992 (Unaudited) Table 7 Notes: (A) Includes General, Special Revenue, and Debt Service Fund Types. (B) The years 1983 -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. 164 Highways Parks Fiscal General Public 'and Sanitation and Debt Year Government Safety Streets �(2) Recreation Lim Service Other Total 1983 $546,692 $1,537,897 $515,240 $476,518 $625,030 $265,803 $973,412 $850,006 $5,790,598 1984 563,717 1,654,871 564,101 531,174 753,430 212,379 1,307,737 90,463 5,677,872 1985 850,356 1,799,231 627,733 81,415 788,111 221,821 786,312 291,916 5,446,895 1986 885,343 1,885,654 560,003 75,854 865,369 263,650 1,205,856 208,951 5,950,680 1987 919,991 1,915,895 632,746 80,285 1,001,069 261,583 1,807,407 405,451 7,024,427 1988 1,034,970 2,218,196 563,432 90,760 1,206,281 353,241 1,754,031 1,999,737 9,220,648 1989 1,114,211 2,303,702 785,818 122,304 1,400,850 333,188 2,399,342 1,108,743 9,568,158 1990 1,429,627 2,551,543 762,642 184,627 1,514,853 368,363 2,469,400 1,298,528 10,579,583 1991 1,285,382 2,538,215 891,133 108,108 954,236 390,251 3,950,683 352,510 10,470,518 1992 1,356,795 2,563,788 819,300 176,216 1,044,021 383,933 2,272,802 397,879 9,014,734 Notes: (A) Includes General, Special Revenue, and Debt Service Fund Types. (B) The years 1983 -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. 164 CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL CITY OFFICIALS Year Ended December 31, 1992 Name Mayor and Council Donald J. Murzyn, Jr. Gary L. Peterson Bruce G. Nawrocki Sean T. Clerkin Robert W. Ruettimann Administration Stuart W. Anderson (retired March 31, 1993) Patrick Hentges (effective April 1, 1993) Linda Magee William Elrite June Johnston Phil Suckerman Gregg Woods Mark Winson Dave Mawhorter Charles Kewatt Evelyn Nygaard Dennis Joriman Donald Jolly Mark Casey Rebecca Loader Table 8 Official Title Mayor Councilmember Councilmember Councilmember Councilmember City Manager City Manager Assistant To City Manager City Clerk- Treasurer, Finance Director Assistant Finance Director Liquor Operations Manager City Attorney Public Works Director, City Engineer Chief of Police Chief of Fire Building Inspector Electrical Inspector Superintendent of Public Works Recreation Services Director Librarian 165 CITY OF COLUMBIA HEIGHTS, MINNESOTA MISCELLANEOUS STATISTICS Table 9 December 31, 1992 Page 1 of 2 (Unaudited) 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 1983 540 1984 525 1985 508 1986 513 1987 556 1988 535 ' 1989 473 1990 486 1991 484 1992 515 Estimated Construction Cost for Issued Permits 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 1992 2,373,433 166 CITY OF COLUMBIA HEIGHTS, MINNESOTA MISCELLANEOUS STATISTICS December 31, 1992 (Unaudited) Table 9 Page 2 of 2 Fire Protection 13,580 Number of Stations I Number of Employees: 79.38% Full-time 8 Volunteer 26 Police Protection 2,968 Number of Stations I Number of Employees 24 Parks 8,175 City Parks 13 Playgrounds 11 County Park 1 Schools 20,029 Senior High I Junior High 1 Elementary 3 Parochial Elementary I Employees (as of December 31, 1992) Regular 107 Part -time and Temporary 427 534 Elections Registered voters - Last City General Election 13,580 Number of Votes Cast - Last City General Election 10,780 Percentage of Registered Voters Voting 79.38% 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 20,029 1985 19,540 1990 (Census) 18,910 167 CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL TAXPAYERS December 31, 1992 (Unaudited) Table 10 Source of Data: Anoka County Auditor's Office for collectible 1992 tax levies. 168 % of Total City Tax Capacity Tax Capacity Taxpayer Type of Business Value Value Kraus - Anderson, Inc. Construction $230,062 2.40% Zaidan Holdings, Inc. Office Building 223,900 2.30% State Bank of Aurora Office Building 186,300 1.90% Columbia Park Properties Medical Building 158,479 1.60% Maylan Construction Company Retail (K -Mart) 156,610 1.60% Medtronics, Inc. Medical Manufacturing 154,951 1.60% Consolidated Realty of Minneapolis Apartments 112,751 1.20% Northern States Power Utility 110,060 1.10% Minnegasco Utility 97,117 1.00% Lynde Investment Apartments 78,398 0.80% Total Principal Taxpayer $1,508,628 15.50% Source of Data: Anoka County Auditor's Office for collectible 1992 tax levies. 168 CITY OF COLUMBIA HEIGHTS, NMW4ESOTA COMPUTATION OF LEGAL DEBT MARGIN Table 11 December 31, 1992 (Unaudited) 1992/1993 1991/1992 Market Value $542,287,800 $542,920,400 Debt Limit Percentage (Note A) 2% 2% Debt limit 10,845,756 10,858,408 Amount of Debt applicable to debt limit: Total bonded debt 19,059,721 20,239,721 Lass: Tax increment bonds 18,149,721 19,154,721 (Note B) Special assessment bonds 910,000 1,085,000 Total amount of debt applicable to debt limit 0 0 Legal debt margin $10,845,756 $10,858,408 Note A M.S.A. Section 47553 (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. 169 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING DEBT (1) December 31, 1992 (Unaudited) Table 12 (1) Using 1991 figures, 1992 figures were not available. 170 Amount Applicable to Net Percentage City of General Applicable Columbia Heights Obligation Debt to City Share of Debt Direct debt: City of Columbia Heights $19,059,721 100.0% $19,059,721 Overlapping debt: (1) 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 Totals $122,090,450 $23,494,397 (1) Using 1991 figures, 1992 figures were not available. 170 I CITY OF COLUMBIA HEIGHTS, MINNESOTA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS Years 1983 Through 1992 (Unaudited) Table 13 (1) Estimated assessed (1983 -1987) and tax capacity (1988 -1992) values from Table 1. (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. 171 Property Value (1) Construction Fiscal Number Bank Year Real Personal Total of Units Value Deposits (2) 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 5,198,2A0 10,311,528 1991 9,901,542 210,051 10,111,593 484 4,894,021 9,923,902 1992 9,226,574 207,309 9,433,883 515 2,373,433 Not Available * Amount expressed in thousands. (1) Estimated assessed (1983 -1987) and tax capacity (1988 -1992) values from Table 1. (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. 171 CH 172 CITY OF COLUMBIA HEIGHTS, MPWESOTA SINGLE AUDIT AND OTHER REQUIRED REPORTS 173 CH 174 CITY OF COLUMBIA HEIGHTS, M NNESOTA *TA EE, F EDPATH & C®,y L TD. CERTIFIED PUBLIC ACCOUNTANTS • •_ 4_ I_ • "•.•1• • r• ' .1 • • l z. m To the Honorable Mayor and Members of the City Council Columbia Heights, Minnesota We have audited the general purpose financial statements of the City of Columbia Heights, Minnesota, for the year ended December 31, 1992, and have issued our report thereon dated April 6, 1993. These general purpose financial statements are the responsibility of the City of Columbia Heights, Minnesota'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 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. The information in that 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. TAUTGES, REDPATH & CO., LTD. Certified Public Accountants April 6, 1993 i 175 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH 176 CITY OF COLUMBIA HEIGHTS, MINNESOTA t 1 1 1 1 1 1 i 1 i 1 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE For The Year Ended December 31, 1992 Federal Funding Source/ Federal 1992 Activitv Pass Through Agency / CFDA Revenue Program Title Number Recognized Expenditures City of Columbia Heights: U.S. Department of Justice: Passed- through State of Minnesota: Police Grant 16.579 $13,333 $13,333 Federal Emergency Management Agency: Passed - through Anoka County: Emergency Management Assistance Grant 83.503 3,802 3,802 U.S. Department of Transportation: 14.852 3,000 3,000 Passed - through Anoka County: State and Community Highway Safety (ATAC) Grant 20.600 2,267 2,267 Housing and Redevelopment Authority of Columbia Heights: U.S. Department of Housing and Urban Development: Passed - through Anoka County: Community Development Block Grant - Entitlement Grant 14.218 177,634 177,634 Direct: Comprehensive Improvement Assistance Program (CIAP) - Modernization Grant * 14.852 16,955 16,955 Comprehensive Improvement Assistance Program (CLAP) - Operating Subsidy 14.852 3,000 3,000 Passed- through Metropolitan Council: Section 8 Housing Assistance Payments Program for Administrative Services 14.156 42,743 42,743 Total Federal Assistance $262,734 $262,734 177 CH 178 CITY OF COLUMBIA HEIGHTS, MINNESOTA *TA f7S, FREDP l TH & CO., LTO. CERTIFIED PUBLIC ACCOUNTANTS 1 Independent Auditor's Report on Compliance With General Requirements Applicable to Federal Financial Assistance Progmms To the Honorable Mayor and Members of the City Council 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, 1992, and have issued our report thereon dated April 6, 1993. We have applied procedures to test the City of Columbia Heights, Minnesota's compliance with the following requirements applicable to its federal financial assistance programs, which are identified in the schedule of Federal Financial Assistance, for the year ended December 31, 1992: Political Activity Federal Financial Reports Davis -Bacon Act Allowable Costs/Cost Principles Civil Rights Drug -free Work Place Cash Management Administrative Requirements Relocation Assistance and Real Property Acquisitions 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, Minnesota's 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, Minnesota had not complied, in all material respects, with those requirements. This report is intended for the information of the City of Columbia Heights, Minnesota's management, the federal cognizant audit agency and other federal agencies. However, this report is a matter of public record and its distribution is not limited TAUTGES, REDPATH & CO., LTD. Certified Public Accountants April 6, 1993 Wk 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH 180 CITY OF COLUMBIA HEIGHTS, NIINNESOTA *7TAES, G, ED PA TH & C®., L T®. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report on Compliance With Nonmajor Federal Financial Assistance Programs To the Honorable Mayor and Members of the City Council 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, 1992, and have issued our report thereon dated April 6, 1993. In connection with our audit of the general purpose financial statements of the City of Columbia Heights, Minnesota, and with our consideration of the City of Columbia Heights, Minnesota's control structure used to administer federal financial assistance programs, as required by Office of Management and Budget 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, 1992. As required by OMB Circular A -128, we have performed auditing ' procedures to test compliance with the requirements governing the types of services allowed or unallowed, eligibility, special reporting requirements, and special tests and provisions 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 of Columbia Heights, Minnesota'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 of Columbia Heights, Minnesota had not complied, in all material respects, with those requirements. This report is intended for the information of the City of Columbia Heights, Minnesota's management, the federal cognizant audit agency and other federal agencies. However, this report is a matter of public record and its distribution is not limited Ael TAUTGES, REDPATH & CO., LTD. Certified Public Accountants j April 6, 1993 1 181 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 o FAX /426 -5004 o Member of HLB International *TA L S, FR' ED PA TH & C0., L TO. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report on Compliance With Nonmajor Federal Financial Assistance Programs To the Honorable Mayor and Members of the City Council 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, 1992, and have issued our report thereon dated April 6, 1993. In connection with our audit of the general purpose financial statements of the City of Columbia Heights, Minnesota, and with our consideration of the City of Columbia Heights, Minnesota's control structure used to administer federal financial assistance programs, as required by Office of Management and Budget 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, 1992. As required by OMB Circular A -128, we have performed auditing ' procedures to test compliance with the requirements governing the types of services allowed or unallowed, eligibility, special reporting requirements, and special tests and provisions 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 of Columbia Heights, Minnesota'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 of Columbia Heights, Minnesota had not complied, in all material respects, with those requirements. This report is intended for the information of the City of Columbia Heights, Minnesota's management, the federal cognizant audit agency and other federal agencies. However, this report Iis a matter of public record and its distribution is not limited. ze, iTAUTGES, REDPATH & CO., LTD. Certified Public Accountants April 6, 1993 181 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH 182 CITY OF COLUMBIA HEIGHTS, MINNESOTA OTA U TG ES, FREDPATH & C®., LT®. CERTIFIED PUBLIC ACCOUNTANTS 1 Independent Auditor's &.port on the Internal Control Structure in Accordance with Government Auditing Standards To the Honorable Mayor and Members of the City Council 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, 1992, and have issued our report thereon dated April 6, 1993. 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, 1992, 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 judgments 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, projections 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 r. 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 in the following categories; receivables, cash receipts, billings, accounts payable, cash disbursements and payroll. For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. 1 183 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH 184 CITY OF COLUMBIA HEIGHTS, MINNESOTA 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 that, in our judgment, 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. 1 Substantially all accounting procedures of the Housing and Redevelopment Authority are performed by one person. Ideal conditions call for segregation of duties to establish a system of internal testing of procedures performed. This condition is common to organizations of this size. Any modification of internal controls in these areas must be viewed from a cost/benefit perspective. 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. We also noted other matters involving the internal control structure and its operation that we have reported to the management of the City of Columbia Heights, Minnesota in a separate report dated April 26, 1993. This report is intended for the information of the City of Columbia Heights, Minnesota's management, the federal cognizant audit agency and other federal agencies. This restriction is not intended to limit the distribution of this report, which is a matter of public record. TAUTGES, REDPATH & CO., LTD. Certified Public Accountants April 6, 1993 185 CH :• CITY OF COLUMBIA HEIGHTS, MINNESOTA *TA ES, FREDP 1 TH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS To the Honorable Mayor and Members of the City Council 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, 1992, and have issued our report thereon dated April 6, 1993. 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, 1992, we considered the City's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the City's general purpose financial statements and to report on the internal control structure with OMB Circular A -128. 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 April 6, 1993. 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 judgments 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. 187 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH 188 CITY OF COLUMBIA HEIGHTS, MINNESOTA r 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 Relocation Assistance and Real Property Acquisition Federal Financial Reports Allowable Costs /Cost Principles Drug -fee Work Place Administrative Requirements Specific Requirements: Allowability of Service Eligibility Special Reporting Requirements Special Tests and Provisions 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, 1992, the City of Columbia Heights, Minnesota had no major federal financial assistance programs and expended 68% of its total federal financial assistance under the following nonmajor federal financial assistance programs; Community Development Block Grant. 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 and general requirements applicable to the aforementioned nonmajor programs. 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 judgment, could adversely affect the City of Columbia Heights, Minnesota's, ability to administer federal financial assistance programs in accordance with applicable laws and regulations. Substantially all accounting procedures of the Housing and Redevelopment Authority are performed by one person. Ideal conditions call for segregation of duties to establish a system of internal testing of procedures performed. This condition is common to organizations of this size. Any modification of internal controls in this area must be viewed from a cost/benefit perspective. 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. 189 CH 190 CITY OF COLUMBIA HEIGHTS, MINNESOTA Our consideration of the internal control structure policies and procedures used in administering federal financial assistance 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 considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is a material weakness. We also noted other matters involving the internal control structure and its operation that we have reported to the management of the City of Columbia Heights, Minnesota in a separate report dated April 26, 1993. jThis report is intended for the information of the City of Columbia Heights, Minnesota's management, the federal cognizant audit agency and other federal agencies. This restriction is not r intended to limit the distribution of this report, which is a matter of public record. TAUTGES, REDPATH & CO., LTD. Certified Public Accountants April 6, 1993 191 CH 192 CITY OF COLUMBIA HEIGHTS, MINNESOTA *T.4 TOESy Ri EDPA TH & CO., LTO. CERTIFIED PUBLIC ACCOUNTANTS Indelmndent Auditor's m Based on an Audit of the General EMose Financial Statements Performed in Accordance with Government Auditing Standards To the Honorable Mayor and Members of the City Council �i Columbia Heights, Minnesota We have audited the general purpose financial statements of the City of Columbia Heights, Minnesota, for the year ended December 31, 1992, and have issued our report thereon dated April 6, 1993. 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, Minnesota 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, Minnesota complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to the 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 solely for the use of the City of Columbia Heights, Minnesota's management, the federal cognizant audit agency, and other federal agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, Zoe to to �V TAUTGES, REDPATH & CO., LTD. Certified Public Accountants April 6, 1993 193 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH 194 CITY OF COLUMBIA HEIGHTS, MINNESOTA