Loading...
HomeMy WebLinkAbout1994 CAFRCOMPREHENSIVE ANNUAL FINANCIAL REPORT ' OF THE CITY OF COLUMBIA HEIGHTS ' STATE OF MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 1994 Prepared By: Finance Department CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Reference Page Number I. INTRODUCTORY SECTION Principal City Officials 3 Organizational Chart 5 Letter of Transmittal 7 Certificate of Achievement for Excellence in Financial Reporting 15 II. FINANCIAL SECTION Independent Auditor's Report 19 General Purpose Financial Statements Combined Balance Sheet - All Fund Types and Account Groups and Discretely Presented Component Unit Statement 1 22 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All Governmental Fund Types and Expendable Trust Funds and Discretely Presented Component Unit Statement 2 26 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General and Special Revenue Fund Types Statement 3 28 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - Proprietary Fund Types Statement 4 30 Combined Statement of Cash Flows - all Proprietary Fund Types Statement 5 31 Notes to Financial Statements 33 mbinini!. Individual Fund and Account Group Financial Statemen General Fund: Balance Sheet Statement 6 67 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Statement 7 68 Schedule of Revenues - Budget and Actual Statement 8 70 Schedule of Expenditures - Budget and Actual Statement 9 71 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Sewer Utility Fund: Balance Sheet Statement 35 111 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 36 112 Statement of Cash Flows Statement 37 113 Reference Page Number Special Revenue Funds: Combining Balance Sheet Statement 10 74 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 11 76 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Municipal State Aid Street Fund Statement 12 78 Cable Television Fund Statement 13 79 Paratransit Fund Statement 14 80 D.A.R.E. Program Statement 15 81 Library Fund Statement 16 82 Community Police Statement 17 83 Project Pride Statement 18 84 Statement of Revenues, Expenditures and Changes in Fund Balance: Housing Mortgage Statement 19 85 Recreation Contributed Projects Statement 20 86 Contributed Projects Statement 21 87 Parking Ramp Statement 22 88 Confiscated/Forfeited Properties Statement 23 89 Statement of Revenues, Expenditures and Changes in Fund Balance - Statement 24 90 Federal Police Grant Debt Service Funds: Combining Balance Sheet Statement 25 93 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 26 94 Capital Project Funds: Combining Balance Sheet Statement 27 98 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 28 100 Enterprise Funds: Combining Balance Sheet Statement 29 104 Combining Statement of Revenues, Expenses and Changes in Retained Earnings Statement 30 105 Combining Statement of Cash Flows Statement 31 106 Water Utility Fund: Balance Sheet Statement 32 108 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 33 109 Statement of Cash Flows Statement 34 110 Sewer Utility Fund: Balance Sheet Statement 35 111 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 36 112 Statement of Cash Flows Statement 37 113 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS ' Reference Page Number Refuse Utility Fund: Balance Sheet Statement 38 114 ' Statement of Revenues, Expenses and Changes in Retained Earnings Statement 39 115 Statement of Cash Flows Statement 40 116 iLiquor Fund: Balance Sheet Statement 41 117 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 42 118 Statement of Cash Flows Statement 43 119 Internal Service Funds: ' Combining Balance Sheet Statement 44 122 Combining Statement of Revenues, Expenses and Changes in Retained Earnings Statement 45 123 Combining Statement of Cash Flows Statement 46 124 Central Garage Fund: Balance Sheet Statement 47 125 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 48 126 Statement of Cash Flows Statement 49 127 Energy Management Fund: Balance Sheet Statement 50 128 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 51 129 ' Statement of Cash Flows Statement 52 130 Data Processing Fund: Statement of Revenues, Expenses and Changes in Retained Earnings Statement 53 131 Statement of Cash Flows Statement 54 132 Insurance Fund: Balance Sheet Statement 55 133 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 56 134 Statement of Cash Flows Statement 57 135 Trust and Agency Funds: ' Fiduciary Funds: Combining Balance Sheet Statement 58 138 Expendable Trust Funds: ' Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 59 139 Fiduciary Funds: Combining Statement of Changes in Assets and Liabilities - All Agency Funds Statement 60 140 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Reference Page Number Housing and Redevelopment Authority Funds: Combining Balance Sheet Statement 61 142 Combining Statement of Revenues, Expenses and Changes in Fund Balance - All Governmental Fund Types Statement 62 144 General Fixed Assets Account Group: Comparative Schedule of General Fixed Assets - By Source Statement 63 146 Schedule of Changes in General Fixed Assets - By Function and Activity Statement 64 147 Schedule of General Fixed Assets - By Function and Activity Statement 65 148 General Long -Term Debt Account Group: Schedule of General Long -Term Debt Statement 66 150 Schedule of Debt Service Requirements to Maturity Statement 67 151 Supplementary Financial Information Combining Schedule of Bonds Payable Exhibit 1 154 Schedule of Sources and Uses of Public Funds For Housing and Redevelopment Authority Tax Increment Financing Districts Exhibit 2 158 Note - Sources of Funds For Housing and Redevelopment Authority Tax Increment Financing Districts Exhibit 3 159 III. STATISTICAL SECTION Assessed Value, Tax Capacity, and Estimated Actual Value of all Taxable Property - 1985 Through 1994 Table 1 162 Tax Rates - Years 1985 Through 1994 Table 2 163 City Tax Levy - Years 1985 Through 1994 Table 3 164 Tax Levies and Tax Collections - Years 1985 Through 1994 Table 4 165 Special Assessment Levies and Collections - Years 1985 Through 1994 Table 5 166 General Governmental Revenues By Source - Years 1985 Through 1994 Table 6 167 General Governmental Expenditures By Function - Years 1985 Through 1994 Table 7 168 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Reference Page Number Principal City Officials Table 8 169 ' Miscellaneous Statistics Table 9 170 ' Principal Taxpayers Table 10 172 Computation of Legal Debt Margin P g g Table 11 173 ' Computation of Direct and Overlapping Debt Table 12 174 Property Value, Construction and Bank Deposits - Years 1985 Through 1994 Table 13 175 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita - Years 1985 Through 1994 Table 14 176 Ratio of Annual Debt Service Expenditures For General Obligation Bonded Debt to Total General Governmental Expenditures - Years 1985 Through 1994 Table 15 177 IV. SINGLE AUDIT AND OTHER REQUIRED REPORTS SECTION ' Independent Auditor's Report on Supplementary Information - Schedule of Federal Financial Assistance 181 Schedule of Federal Financial Assistance 183 Independent Auditor's Report on Compliance With General Requirements Applicable to Federal Financial Assistance Programs 185 Independent Auditors Report on Compliance With Specific Requirements Applicable to Major ' Federal Financial Assistance Programs 187 Independent Auditor's Report on the Compliance with Specific Requirements Applicable to Federal Financial Assistance Programs 189 'Nonmajor Independent Auditor's Report on the Internal Control Structure in Accordance With Government Auditing Standards 191 Independent Auditor's Report on the Internal Control Structure Used in Administering Federal Financial Assistance Programs 195 Independent Auditor's Report on Compliance in Accordance with Government Auditing Standards 201 I. INTRODUCTORY SECTION CH 2 CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL CITY OFFICIALS December 31, 1994 CITY COUNCIL Joseph Sturdevant, Mayor Gary L. Peterson Councilmember Bruce G. Nawrocki Councilmember Donald G. Jolly Councilmember Robert W. Ruettimann Councilmember CITY MANAGER Patrick Hentges FINANCE DEPARTMENT William J. Elrite, Finance Director June V. Johnston, Assistant Finance Director Gary Braaten, Accounting Coordinator 3 CH CITY OF COLUMBIA HEIGHTS, MINNESOTA Commissions & Boards: Charter HRA Police, Fire & Civil Service Downtown Development Insurance Traffic Cable Communications Planning & Zoning Human Services Park Merit 5 CITY OF COLUMBIA HEIGHTS ORGANIZATIONAL CHART ' Mayor: Joseph Sturdeoant Councilmembers: Donald G. Jolly Bruce G. Nawrocki Gary L. Peterson Council Secretary* I Robert W. Ruettimann City Manager: Patrick Hentges City Manager's Secretary 'POLICE (Administered by Mayor) Asst. to City Manager Police Chief Special Projects Coord. Secretary II Special Assessments Clerk- Typist II Accounting Clerk II Police Captain Clerk- Typist II (PT) Patrol Sergeants (4) Patrol Officers (16) Comm. Service Officers BUILDING INSPECTIONS (2 FT & 2 PT) Building Inspector Sr. Records Technician Secretat II Secretary II -A (2) ' Clerk- Typist II (PT) FINANCE Finance Director /City Clerk/Treasurer. William Elrite Secretary II (PT) FIRE Assistant Finance Director Fire Chief: Charles Kewatt Accounting Coordinator Secretary II (PT) Payroll/Accounting Clerk Deputy Fire Chief Utilities Accounting Clerk H Firefighters (6) Utilities Accounting Clerk I Volunteer Firefighters (24) Accounting Clerk I Liquor Accounting Clerk II (2 PT) Switchboard Operator/Receptionist Meter Readers (2 PT) Liquor Operations Manager LIBRARY Asst. Operations Managers (2) Library Director: M. Rebecca Loader Retail Clerks (28 PT) Clerk- Typist II (2) Liquor Store Supervisor (4) Library Supervisor (5 PT) Elections Page (8 PT) Choreperson (PT) Adult Service Specialist PUBLIC WORKS Children's Librarian Public Works Director /City Engineer: Mark Winson Secretary II -A Clerk- Typist II Assistant City Engineer RECREATION Engineering Technician IV Recreation Director: Mark Casey Engineering Technician III Clerk- Typist H (2) Engineering Technician II Senior Citizen Coordinator Public Works Superintendent Recreation Program Coordinator Foreman (3) Volunteer Coordinator Maintenance III (1) Head Custodian Maintenance II (8) Custodian 11 (2 PT) Maintenance I (7) Custodian 1 (2 PT) Foreman - Vehicle Maintenance Maintenance III - Mechanic Maintenance III- Bodyman/Painter Also serves in the capacity of Deputy City Clerk under the Finance Admin. Assistant- Public Works 1 Director /City Clerk/Treasurer. Clerical/Purchasing Clerk Commissions & Boards: Charter HRA Police, Fire & 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 (612) 782 -2800 April 30, 1995 Mayor Joseph Sturdevant Councilmembers Donald G. Jolly 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, 1994 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. The Housing and Redevelopment Authority (HRA) is included in the reporting entity as a component unit due to the fact that the mayor appoints the governing board of the Authority and the City is in a relationship of financial benefit or burden with the Authority. , 7 "SERVICE IS OUR BUSINESS" EQUAL OPPORTUNITY EMPLOYER � 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 1994, the City restructured the original development agreements for two significant projects within the Central Business Tax Increment District. The original agreements resulted in tax delinquencies, tax litigation and tax rate inequities. This made it difficult to market or lease the property. The restructuring of the agreements and real estate taxes resulting in a significant amount of space being leased by the University Minnesota. The City Council approved a redevelopment plan to improve housing conditions in the Sheffield neighborhood. The City purchased twenty-six duplex buildings, one single - family home, and one four -plex building. These purchases, coupled. with a redevelopment plan, served to stabilize housing deterioration and eliminate the sub - standard dwellings that were the center of controversy in the neighborhood. Employment in the City has remained stable. City staff in the newly created Community Development Department are actively promoting the expansion and creation of new businesses in the community. 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. MAJOR INITIATIVES For the Year First Choice Homes was selected as the developer to construct eighteen single - family homes on the 4600 block between Pierce and Fillmore Streets. One model home was started in 1994, and the initial marketing efforts have been positive. Two duplexes have been renovated for future rental opportunities. With the help of a federal grant, three new police officers were added to the authorized staffing strength of the police department. The added staffing enables the City to intensify its Community Oriented Policing efforts. It is hoped that the problem - solving techniques of the Community Oriented Policing philosophy will provide the citizens and neighborhoods with a more direct access to crime prevention services. For the Futur The Park and Recreations Board developed a long -range plan to improve park and leisure service facilities throughout the City. Significant park upgrades including playground improvements at Edgemoor and Hilltop Parks. The approved 1995 budget will bring further playground upgrades and other needed improvements to the City's neighborhood parks. The City will continue redevelopment of the Sheffield neighborhood with the building of entry level single - family homes. 9 �- •. - • Each year the City focuses attention on the efforts and accomplishments of a selected department. This year the finance department has been selected. The finance department is responsible for all accounting, budgeting and financial services for the City and the Housing and Redevelopment Authority; City clerk and election functions; and data processing throughout the City. Liquor operations also fall under the direction of the finance director. The finance department employs twelve full and part-time employees to handle these functions. In the accounting area, the finance department handles utility billing for 6100 accounts (billing water and sewer usage and refuse); payroll for 100 full-time and 200 -400 part-time and seasonal employees; accounts payable and receivable; cash receipting; liquor and HRA accounting services; and budgeting and financial reporting. Finance department employees are required to cover other functions of election and data processing enabling the City to save money in those areas. Finance personnel are dedicated and hardworking and are to be commended for their efforts. Financial Information Management of the City of Columbia Heights is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed the benefits likely to be derived; and 2) the valuation of costs and benefits requires estimates and judgments by management. In addition, the government maintains extensive budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the general fund and certain special revenue funds are included in the annual appropriated budget. The level of budgetary control, the level at which expenditures cannot legally exceed the appropriated amount, is at the fund level. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. 10 General Government Functions Revenues for City general government functions (General, Special Revenue, Debt Service and Capital Project Funds) during 1994 totaled $10,350,690, which is an increase of 8.1% from 1993. Property taxes received for the City produced 35% of general revenues compared to 38% last year. The amount of revenues from various sources and their changes from last year are shown below: Revenue Source Amount of Increase Percent (Decease) Amount of Total from 1993 Taxes $3,674,463 35% $81,219 Special assessments 889,362 9% 536,881 Licenses and permits 165,696 2% 30,151 Intergovemmental 3,702,419 36% (80,333) Charges for services 4.47,409 4% (17,478) Fines and forfeitures 87,225 1% (2,239) Interest 604,754 6% (411,001) Other revenue 779,362 8% 634,345 Total revenues $10,350,690 100% $771,545 The increase in special assessments was due to early payment of deferred assessments by Columbia Park Clinic. Interest revenues were down due to lower interest rates. Other revenues were up due to the completion and closing of major capital projects. The expenditures for City general government functions for 1994 totaled $9,962,445, a decrease of 8.7% from 1993. The total expenditures for major City functions and their changes from last year are shown below: Expenditure Function Amount Amount of Increase Percent (Decrease) of Total from 1993 General government $1,352,543 14% ($89,060) Public safety 2,576,987 26% (102,285) Public works 841,861 8% 34,871 Sanitation 100,111 1% (48,943) Parks and recreation 1,037,181 10% (3,278) Library 395,821 4% 21,196 Other & contingencies 243,400 2% (70,138) Capital outlay 1,725,745 17% 585,953 Debt service 1,688,796 17% (1,274,897) Total expenditures $9,962,445 100% ($946,581) The increase in capital outlay was due to continued purchases in the Sheffield neighborhood. 11 General Fund Balance The fund balance of the General Fund increased by $262,469 or 8.2 %. The total fund balance of $3,444,408 indicates a strong financial position. It should be pointed out, however, that this represents working capital for general operations, which is used extensively during the first seven months of the year until current taxes and state aids are received. Enterprise Operations The City's enterprise operations are comprised of water, sewer and refuse utilities and municipal liquor operations. Total sales from the City's off -sale liquor locations amounted to $5,517,257 in 1994. This resulted in a total net operating income of $253,735. Water and Refuse Utilities experienced operating income increases during 1994. The Sewer Utility Fund experienced a loss of $93,082. The Water Utility Fund experienced an operating income of $175,179 during the year, and the Refuse Utility experienced an operating income of $183,194 during 1994. During the year, the City Council designated funds from the Sewer and Water Utilities for capital equipment replacement and construction. Internal Service Funds The City maintains four Internal Service Funds - the Central Garage Fund, the Energy Management Fund, the Data Processing 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 1994, the Central Garage Fund had a net income of $31,904. The Energy Management Fund was established to account for energy maintenance and improvement in City buildings under a seven -year energy savings contract with Honeywell, Inc. The Data Processing Fund was established to account for management information system costs throughout the City. 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. Trust and Agency Funds 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, flex benefits and police /fire contingencies. 12 ' Cash Management j 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 4.13 %. ' 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. 1 Debt Administration ' At December 31, 1994, the City has a number of debt issues outstanding. These issues included $9,679,721 of General Obligation Tax Increment Bonds. The City issued $6,670,000 in General Obligation Tax Increment Refunding Bonds in 1991 to refund the Tax Increment Refunding Bonds 1 of 1987. Bond proceeds were placed in an escrow account until the call date, March 1, 1994. Risk Mana eg ment 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. There were no significant claims pending at year end for the City. OTHER INFORMATION Independent Audit 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. Awards The Government Finance Officers' Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report for the year ended December 31, 1993. 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. 13 Acknowled ments 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, William J. Elrite Finance Director U, c June V. Johnston Assistant Finance Director 14 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, 1993 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. ' L:I FjC�, " L 9J y iII0 President Executive Director 15 CH Eel CITY OF COLUMBIA HEIGHTS, MINNESOTA II. FINANCIAL SECTION 17 CH 18 CITY OF COLUMBIA HEIGHTS, MINNESOTA TrA UTGES, RE®PA TH & CO. L i®. CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Columbia Heights, Minnesota We have audited the accompanying general purpose financial statements of the City of Columbia Heights, Minnesota, as of and for the year ended December 31, 1994 as listed in the table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 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, 1994, and the results of its operations and 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 listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements 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 presented in all material respects in relation to the general purpose financial statements taken as a whole. March 17, 1995 r TAUTGES, REDPATH & CO., LTD. Certified Public Accountants 19 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 o FAX /426 -5004 e Member of HLB International CH 20 CITY OF COLUMBIA HEIGHTS, MINNESOTA 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 AND DISCRETELY PRESENTED COMPONENT UNIT December 31, 1994 With Primary Government Comparative Totals For December 31, 1993 Assets Cash and 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 Due from developer Prepayments Assets held by deferred compensation trustees Inventory, at cost Real estate held for resale Fixed assets, net of accumulated depreciation 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 $3,781,003 $1,746,879 $2,358,793 $5,495,142 $9,920,772 $2,095,808 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 $3,510,576 $793,560 $2,032,664 $4,605,478 $3,404,939 $1,144,354 6,464 17,303 - 2,545 763,696 732 - - - 366,547 - - 100,380 - 316,901 - - - 20,482 3,794 9,228 34,710 27,730 8,193 - - - 10,530 - - 45,807 77,715 - 13,611 178,111 - 79,609 854,379 - - 1,022,031 - 4,421 - - 10,421 - - 13,264 128 - 2,300 58,031 34,850 - - - - 609,498 82,124 - - - 449,000 - - - - - - 3,856,736 825,555 $3,781,003 $1,746,879 $2,358,793 $5,495,142 $9,920,772 $2,095,808 22 The accompanying notes are an integral part of these financial statements. Statement 1 Page 1 of 2 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 1994 1993 Authority 1994 $548,648 $ - $ - $16,040,219 $14,168,680 $445,193 $16,485,412 - - - - 6,964,839 - - ' - - - 790,740 854,166 607 791,347 - - - 366,547 954,071 - 366,547 - - 417,281 927,387 2,348 419,629 1,883 = 106,020 59,861 662 106,682 - - - 10,530 - 304,587 315,117 315,244 434,163 150,023 465,267 1,956,019 856,376 211,210 2,167,229 - - - - - 1,430 1,430 14,842 7,648 - 14,842 65,000 65,000 - - - 108,573 28,509 7,085 115,658 1,860,493 - - 1,860,493 1,523,237 185,447 2,045,940 ' - - - 691,622 659,691 - 691,622 - - - 449,000 220,000 21,114 470,114 - 12,997,734 - 17,680,025 17,549,643 5,253,888 22,933,913 ' - - 1,171,524 1,171,524 7,922,087 - 1,171,524 ' - - 9,276,169 9,276,169 9,844,318 - 9,276,169 - - 373,270 373,270 362,043 10,403 383,673 1 - - 14,463 14,463 15,228 - 14,463 $2,411,024 1 $12,997,734 $10,835,426 $51,642,581 $63,351,947 $6,658,997 $58,301,578 ' 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 AND DISCRETELY PRESENTED COMPONENT UNIT December 31, 1994 With Primary Government Comparative Totals For December 31, 1993 Liabilities, Equity and Other Credits Liabilities: Accounts payable Accrued salaries and withholdings payable Contracts payable - retained percentage Notes payable Capital lease payable Deferred compensation payable Due to other governmental units Due to other funds Due to primary government Due to component unit Deferred revenue Bonds payable Accrued interest payable Accreted interest payable Deposits Insurance and taxes in escrow Compensated absences payable Other liabilities Total liabilities Equity and other credits: Contributed capital Investment in general fixed assets Retained earnings: Reserved Unreserved Fund balance (deficit): Reserved Unreserved: Designated Undesignated Total equity and other credits Proprietary Governmental Fund Types Fund Types Special Debt Capital Internal General Revenue Service Project Enterprise Service $37,413 $15,279 $ - $9,982 $326,585 $25,331 115,793 8,743 - 2,139 79,277 17,342 - 8,798 - 1,771 5,577 - - - - 72,000 - - - - - - - 580,577 76,888 - 15,989 1,211 163,931 - - - 854,379 1,101,640 - - 1,430 - - - - - 105,071 - 316,901 365,199 - - - - - - - 3,591 - 180 - 119 - - 336,595 33,000 1,187,269 1,554,061 575,370 626,841 - - 1,433,421 188,849 2,736,803 983,823 - - - - 5,175,178 296,295 , 13,264 453,606 - 451,300 - - 3,431,144 6,376 1,171,524 116,234 - - - 1,253,897 - 3,373,547 - - 3,444,408 1,713,879 1,171,524 3,941,081 9,345,402 1,468,967 Total liabilities, equity and other credits $3,781,003 $1,746,879 $2,358,793 $5,495,142 $9,920,772 $2,095,808 24 The accompanying notes are an integral part of these financial statements. I Statement 1 Page 2 of 2 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 1994 1993 Authority 1994 $3,987 $ - $ - $418,577 $419,478 $56,667 $475,244 - - - 223,294 200,202 2,832 226,126 - - - 16,146 82,721 - 16,146 - - 14,463 86,463 15,228 - 86,463 - - - 580,577 671,568 - 580,577 1,860,493 - - 1,860,493 1,523,237 185,447 2,045,940 - - - 258,019 71,060 35,830 293,849 - - - 1,956,019 856,376 211,210 2,167,229 _ - 14,842 14,842 - - - 1,430 3,510 - 1,430 - - - 787,171 1,875,185 371,059 1,158,230 - - 9,679,721 9,679,721 17,209,721 - 9,679,721 - - - 3,591 6,527 - 3,591 - - 767,972 767,972 556,684 - 767,972 8,412 - - 8,711 5,922 13,394 22,105 _ _ _ _ - 4,275 4,275 ` - - 373,270 373,270 362,043 10,403 383,673 469 - - 469 754 - 469 1,873,361 0 10,835,426 17,021,923 23,860,216 905,959 17,927,882 - - - 1,622,270 1,687,499 - 1,622,270 - 12,997,734 - 12,997,734 12,604,118 5,253,888 18,251,622 - - - 3,720,626 3,457,205 - 3,720,626 - - - 5,471,473 5,335,851 - 5,471,473 - - - 918,170 456,503 204,362 1,122,532 532,248 - - 5,257,526 11,308,243 293,541 5,551,067 5,415 - - 4,632,859 4,642,312 1,247 4,634,106 537,663 12,997,734 0 34,620,658 39,491,731 5,753,038 40,373,696 $2,411,024 $12,997,734 $10,835,426 $51,642,581 $63,351,947 $6,658,997 $58,301,578 The 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 AND DISCRETELY PRESENTED COMPONENT UNIT For The Year Ended December 31, 1994 With Primary Government Comparative Totals For The Year Ended December 31, 1993 Other financing sources (uses): Bond proceeds - - Payment of refunded bonds - - Operating transfers in 450,545 153,223 Operating transfers (out) (579,974 ) (475,611) Total other financing sources (uses) (129,429) (322,388) Net increase (decrease) in fund balance 262,469 420,071 Fund balance - January 1 3,181,939 1,293,808 Fund balance - December 31 $3,444,408 $1,713,879 I 26 The accompanying notes are an integral part of these financial statements. I Governmental Fund Types Special Revenues: General Revenue Taxes $2,168,081 $390,348 Special assessments - 586,129 Licenses and permits 165,696 - Intergovernmental 3,268,867 433,552 Charges for services 348,160 99,249 Fines and forfeits 87,225 - Interest 127,048 29,815 Other revenues 66,613 87,996 Total revenues 6,231,690 1,627,089 Expenditures: Current: General government 1,352,543 - Public safety 2,576,987 - Public works 841,861 - Sanitation 100,111 - Parks and recreation 966,561 67,710 Library - 392,160 Other - 241,671 Contingencies 1,729 - Capital outlay - 183,089 Debt service - - Total expenditures 5,839,792 884,630 Revenues over (under) expenditures 391,898 742,459 Other financing sources (uses): Bond proceeds - - Payment of refunded bonds - - Operating transfers in 450,545 153,223 Operating transfers (out) (579,974 ) (475,611) Total other financing sources (uses) (129,429) (322,388) Net increase (decrease) in fund balance 262,469 420,071 Fund balance - January 1 3,181,939 1,293,808 Fund balance - December 31 $3,444,408 $1,713,879 I 26 The accompanying notes are an integral part of these financial statements. I Statement 2 - - - 1,352,543 1,441,603 - Totals - - - 2,576,987 2,679,272 Component (Memorandum - - Fiduciary 841,861 806,990 Unit Only) - - Fund Type Totals (Memorandum Only) Housing and Reporting Debt Capital Expendable Primary Government Redevelopment Entity Service Project Trust 1994 1993 Authority 1994 $1,116,034 $ - $ - $3,674,463 $3,593,244 $58,232 $3,732,695 - 303,233 - 889,362 352,481 - 889,362 - - - 165,696 135,545 - 165,696 - - - 3,702,419 3,782,752 600,128 4,302,547 - - 32,198 479,607 492,597 383,204 862,811 - - - 87,225 89,464 - 87,225 232,588 215,303 11,680 616,434 1,024,555 14,902 631,336 104,611 520,142 7,818 787,180 150,734 86,710 873,890 1,453,233 1,038,678 51,696 10,402,386 9,621,372 1,143,176 11,545,562 - - - 1,352,543 1,441,603 - 1,352,543 - - - 2,576,987 2,679,272 - 2,576,987 - - - 841,861 806,990 - 841,861 - - - 100,111 149,054 - 100,111 - - - 1,034,271 1,040,459 - 1,034,271 - - - 392,160 374,625 - 392,160 - - 35,535 277,206 343,628 1,233,865 1,511,071 - - - 1,729 268 - 1,729 - 1,549,227 - 1,732,316 1,139,792 - 1,732,316 1,688,796 - - 1,688,796 2,963,693 - 1,688,796 1,688,796 1,549,227 35,535 9,997,980 10,939,384 1,233,865 11,231,845 (235,563) (510,549) 16,161 404,406 (1,318,012) (90,689) 313,717 - - - - 730,073 - - (6,515,000) - - (6,515,000) (710,000) - (6,515,000) 7,999,684 711,914 312,003 9,627,369 3,010,474 - 9,627,369 (7,999,684) (60,009) - (9,115,278) (2,677,269) - (9,115,278) (6,515,000) 651,905 312,003 (6,002,909) 353,278 0 (6,002,909) (6,750,563) 141,356 328,164 (5,598,503) (964,734) (90,689) (5,689,192) 7,922,087 3,799,725 209,499 16,407,058 17,371,792 589,839 16,996,897 $1,171,524 $3,941,081 $537,663 $10,808,555 $16,407,058 $499,150 $11,307,705 The accompanying notes are an integral part of these financial statements. 27 Other financing sources (uses): Operating transfers in 392,031 450,545 58,514 Operating transfers (out) CITY OF COLUMBIA HEIGHTS, MINNESOTA (579,974) (297,626) Total other financing sources (uses) 109,683 COMBINED STATEMENT OF REVENUES, EXPENDITURES AND (239,112) Net increase (decrease) in fund balance ($156,736) 262,469 $419,205 CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUND TYPES For The Year Ended December 31, 1994 With Comparative Actual Totals For The Year Ended December 31, 1993 General Over (under) Budget Actual Budget Revenues: Taxes $2,200,351 $2,168,081 ($32,270) Licenses and permits 140,450 165,696 25,246 Intergovernmental 3,238,577 3,268,867 30,290 Charges for services 409,269 348,160 (61,109) Fines and forfeits 100,150 87,225 (12,925) Interest Other revenues 120,000 25,250 127,048 66,613 7,048 41,363 Total revenues 6,234,047 6,231,690 Expenditures: Current: General government 1,492,717 1,352,543 (140,174) Public safety 2,801,542 2,576,987 (224,555) Public works 979,058 841,861 (137,197) Sanitation 165,597 100,111 (65,486) Parks and recreation 1,061,552 966,561 (94,991) Library - - ' Other - - - Contingencies - 1,729 1,729 Total current expenditures 6,500,466 5,839,792 (660,674) Capital outlay - - ' Total expenditures 6,500,466 5,839,792 (660,674) Revenues over (under) expenditures (266,419) 391,898 658,317 Other financing sources (uses): Operating transfers in 392,031 450,545 58,514 Operating transfers (out) (282,348) (579,974) (297,626) Total other financing sources (uses) 109,683 (129,429) (239,112) Net increase (decrease) in fund balance ($156,736) 262,469 $419,205 Fund balance - January 1 3,181,939 Residual equity transfers - Fund balance - December 31 $3,444,408 28 The accompanying notes are an integral part of these financial statements. 11, ITotals (Memorandum Only) _ Special Revenue 1994 Over (under) Budget Actual Budget Budget Statement 3 Over (under) 1993 Actual Budget Actual 482,581 $492,879 3,664,520 $3,937,287 3,195,460 86,598 $3,667,555 IThe accompanying notes are an integral part of these financial statements. 29 $390,348 $390,348 $ - $2,590,699 $2,558,429 ($32,270) $2,439,334 _ _ - 140,450 165,696 25,246 135,545 560,717 112,695 423,032 99,249 (137,685) (13,446) 3,799,294 521,964 3,691,899 447,409 (107,395) (74,555) 3,742,752 458,221 - - - 100,150 87,225 (12,925) 89,464 10,250 18,347 8,097 130,250 145,395 15,145 207,084 11,200 15,458 4,258 36,450 82,071 45,621 29,555 1,085,210 946,434 (138,776) 7,319,257 7,178,124 (141,133) 7,101,955 - - - 1,492,717 1,352,543 (140,174) 1,441,603 - - 2,801,542 2,576,987 (224,555) 2,679,272 = 979,058 841,861 (137,197) 806,990 - - - 165,597 100,111 (65,486) 149,054 959 300 (659) 1,062,511 966,861 (95,650) 977,911 407,318 392,160 (15,158) 407,318 392,160 (15,158) 374,625 333,651 205,735 (127,916) 333,651 205,735 (127,916) 236,210 _ _ _ - 1,729 1,729 268 741,928 598,195 (143,733) 7,242,394 6,437,987 (804,407) 6,665,933 368,533 179,930 (188,603) 368,533 179,930 (188,603) 178,947 1,110,461 778,125 (332,336) 7,610,927 6,617,917 (993,010) 6,844,880 (25,251) 168,309 193,560 (291,670) 560,207 851,877 257,075 i 17,600 17,600 - 409,631 468,145 58,514 432,051 (62,180) (175,611) (113,431) (344,528) (755,585) (411,057) (303,629) (44,580) (158,011) (113,431) 65,103 (287,440) (352,543) 128,422 ($69,831) 10,298 $80,129 ($226,567) 272,767 $499,334 385,497 482,581 $492,879 3,664,520 $3,937,287 3,195,460 86,598 $3,667,555 IThe accompanying notes are an integral part of these financial statements. 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, 1994 With Comparative Totals For The Year Ended December 31, 1993 Internal Totals Enterprise Service (Memorandum Only) Funds Funds 1994 1993 Operating revenues: Charges for services $2,359,193 $618,677 $2,977,870 $3,071,352 Charges for sales 6,599,637 49,169 6,648,806 6,325,944 Total operating revenues 8,958,830 667,846 9,626,676 9,397,296 Operating expenses: Costs of sales, services, and goods sold 6,890,781 457,072 7,347,853 7,093,113 Operating expense 1,301,273 17,901 1,319,174 1,536,340 Depreciation 247,750 130,431 378,181 390,333 Total operating expenses 8,439,804 605,404 9,045,208 9,019,786 Net income from operations 519,026 62,442 581,468 377,510 Nonoperating revenues (expenses): Interest income 211,456 50,824 262,280 363,729 Intergovernmental 46,983 - 46,983 40,992 Miscellaneous revenues 7,081 3,839 10,920 110,618 Interest expense - (28,936) (28,936) (35,967) Miscellaneous expenses (26,810) - (26,810) (15,201) Total nonoperating revenues (expenses) 238,710 25,727 264,437 464,171 Net income before operating transfers 757,736 88,169 845,905 841,681 Operating transfers: Operating transfers in 149,621 146,548 296,169 263,410 Operating transfers (out) (777,155) (31,105) (808,260) (596,615) Total operating transfers (627,534) 115,443 (512,091) (333,205) Net income 130,202 203,612 333,814 508,476 Credit for depreciation on contributed assets 65,229 - 65,229 65,229 Net increase in retained earnings 195,431 203,612 399,043 573,705 Retained earnings - January 1 7,716,550 1,076,506 8,793,056 8,081,089 Prior period adjustment - - - 138,262 Retained earnings - December 31 $7,911,981 $1,280,118 $9,192,099 $8,793,056 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, 1994 With Comparative Totals For The Year Ended December 31, 1993 Statement 5 Cash flows from noncapital financing activities: Operating transfers in from other funds 149,621 146,548 296,169 263,410 Operating transfers (out) to other funds (777,155) (31,105) (808,260) (596,615) Net cash flows from noncapital financing activities (627,534) 115,443 (512,091) (333,205) Cash flows from capital and related financing activities: Acquisition of fixed assets (90,858) Internal Totals (1,142,638) Enterprise Service (Memorandum Only) (28,936) Funds Funds 1994 1993 Cash flows from operating activities: (1,178,605) Cash flows from investing activities: Cash received from customers $8,839,644 $669,866 $9,509,510 $8,588,466 Cash paid to suppliers for goods and services (7,454,452) (467,583) (7,922,035) (7,027,052) Cash payments to employees for services (727,279) (106,744) (834,023) (833,018) Miscellaneous revenues 54,712 3,839 58,551 110,618 Miscellaneous expenses (26,810) - (26,810) (15,201) Net cash flows from operating activities 685,815 99,378 785,193 823,813 Cash flows from noncapital financing activities: Operating transfers in from other funds 149,621 146,548 296,169 263,410 Operating transfers (out) to other funds (777,155) (31,105) (808,260) (596,615) Net cash flows from noncapital financing activities (627,534) 115,443 (512,091) (333,205) Cash flows from capital and related financing activities: Acquisition of fixed assets (90,858) (24,737) (115,595) (1,142,638) Interest expense - (28,936) (28,936) (35,967) Net cash flows from capital and related financing activities (90,858) (53,673) (144,531) (1,178,605) Cash flows from investing activities: Proceeds from sale and maturity of investments - - - 3,080,024 Interest earned on investments 167,615 45,722 213,337 363,729 Net cash flows from investing activities 167,615 45,722 213,337 3,443,753 Net increase in cash and cash equivalents 135,038 206,870 341,908 2,755,756 Cash and cash equivalents - January 1 3,269,901 937,484 4,207,385 1,451,629 Cash and cash equivalents - December 31 $3,404,939 $1,144,354 $4,549,293 $4,207,385 Reconciliation of operating income to net cash provided (used) by operating activities: Operating income $519,026 $62,442 $581,468 $418,502 Adjustments to reconcile operating income to net cash provided (used) by operating activities: Miscellaneous revenues 54,712 3,839 58,551 110,618 Miscellaneous expenses (26,810) - (26,810) (15,201) Depreciation expense 247,750 130,431 378,181 390,333 Changes in assets and liabilities: (Increase) decrease accounts receivable 47,775 2,020 49,795 (19,669) (Increase) decrease due from other governmental units 114,039 - 114,039 (123,153) (Increase) decrease due from other funds (281,000) (281,000) (707,000) (Increase) decrease inventory, at cost (30,003) (1,928) (31,931) (167,040) (Increase) decrease prepayments (57,846) (16,677) (74,523) 103,551 Increase (decrease) accounts payable (17,141) 14,123 (3,018) 143,973 Increase (decrease) accrued salaries and withholdings payable 17,498 - 17,498 (3,473) Increase (decrease) due to other governmental units 97,815 1,807 99,622 11,525 Increase (decrease) capital lease payable - (90,991) (90,991) 671,568 Increase (decrease) accrued interest payable (2,936) (2,936) 6,527 Increase (decrease) deferred revenue - (2,752) (2,752) 2,752 Total adjustments 166,789 36,936 203,725 405,311 Net cash flows from operating activities $685,815 $99,378 $785,193 $823,813 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, 1994 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 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 As required by generally accepted accounting principles, the financial statements of the reporting entity include those of the City of Columbia Heights, Minnesota (the primary government) and its component units. The component unit discussed below is included in the City's reporting entity because of the significance of their operational or financial relationships with the City. The Housing and Redevelopment Authority (HRA) is considered a component unit of the City because the mayor appoints the members of governing authority and because the City is in a relationship of financial benefit or burden with the HRA. The financial position and results of operations of the 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_ FUND TYPES 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. 33 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 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. Capital Project 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 FUND 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 Group - This account group is used to account for all of the City's long -term obligations, other than those liabilities of Proprietary Fund Types. 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, Agency and Expendable Trust 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. 01 CITY OF COLUMBIA HEIGHTS, MINNESOTA ' NOTES TO FINANCIAL STATEMENTS December 31, 1994 I 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 Governmental Accounting Standards Board (GASB) Statement #20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that Use Proprietary Funds provides proprietary activities with a choice of authoritative guidance issued after November 30, 1989. The City of Columbia Heights has elected to follow GASB pronouncements exclusively after that date. 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 and certain Special Revenue 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 in appropriations: General Fund $25,909 Special Revenue Funds: 1 Cable TV 178 Library 191 ITotals $26,278 35 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 The City did not budget for all Special 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 3l, Total Total Sources December 3l, Fund 1993 Revenues Expenditures (Uses) 1994 Special Revenue Funds: Budgeted funds Unbudgeted funds: Housing Mortgage Recreation Contributed Projects Contributed Projects Parking Ramp Confiscated property Federal Police Grant $482,581 $946,434 $778,125 ($158,011) $492,879 459,135 7,126 - - 466,261 19,287 55,647 70,320 - 4,614 17,804 16,344 9,549 - 24,599 312,661 590,471 - (300,000) 603,132 2,340 547 265 - 2,622 - 10,520 26,371 135,623 119,772 Total Special Revenue Funds $1.293,808 $1.627.089 $884.630 ($322388) $1,713,879 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. dial 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). Inventories - Inventories are valued at cost, which approximates market, using the first -in, first -out basis. Real Estate Held for Resale - Real estate is valued at the lower of cost or market. Fixed Assets: General Fixed Assets Account Group - All purchased fixed assets are valued at historical cost or estimated historical cost. The costs of property, plant, and equipment are accounted for as current expenditures of the Governmental Fund Types in the year purchased. The City has elected not to record infrastructure fixed assets in its account records. No depreciation has been provided on general fixed assets. 36 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 Proprietary Fund Tvnes - 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 -Term Debt Account Group. No expenditure is reported for these amounts. Amounts taken as terminal leave each year are not material and therefore the total is carried as long -term debt. Vested or accumulated vacation leave of Proprietary Funds is recorded as an expense and liability of those funds as the benefits accrue to employees. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits. However, a liability is recognized for that portion of accumulating sick leave benefits that it is estimated will be taken as "terminal leave" prior to retirement. FUND EQUITY Contributed capital is recorded in Proprietary Funds that have received capital grants or contributions from developers, customers, or other funds. Fund balance accounts are subdivided: Reserved fund balance accounts indicate that portion of fund equity which has been legally segregated for specific purposes or is not appropriable for expenditures. Unreserved designated fund balance accounts indicate that portion of fund equity that the City has set aside for planned future projects. Unreserved undesignated fund balance accounts indicate that portion of fund equity which is available for budgeting and expending in future periods. REVENUES Property Taxes - Property tax levies are set by the City Council and certified to Anoka County in December (levy /assessment date) 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. 37 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 Property taxes are payable in equal installments by property owners to the County as follows: Personal Property - February 28 and June 30 Real Property - May 15 and October 15 The County remits the collections to the City and other taxing districts four times a year, on or before January 25, April 19, July 5, and December 4. Unpaid taxes at December 31 become delinquent and are classified in the financial statements as delinquent taxes receivable. Property taxes are recognized as revenue to the extent collected in the current period. Portions paid by the State in the form of State paid tax credits are included in 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 cash flow 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. MWILIT& � 7:UY ►,A-=17N1I:1 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. All of the Proprietary Funds' equity in the City -wide cash and investment management pool is considered to be cash equivalents. CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 2 DEPOSITS AND INVESTMENT 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, 1994, including checking accounts, savings accounts, and certificates of deposit are as follows: City HRA Total Bank balance $1,134,713 $466,837 $1,601,550 Carrying amount $813,898 $445,118 $1,259,016 At December 31, 1994, 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. 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, its instrumentalities, or organizations created by an act of congress, excluding mortgage - backed securities defined as high risk; shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described above, general obligation tax- exempt securities, or repurchase or reverse repurchase agreements; 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 repurchase 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. As allowed by authorized investment laws, a portion of the City's investment portfolio is invested in collateralized mortgage obligations which are a form of "derivative" investments. Essentially, these investments can be described as having a variable rate with a guaranteed return of principal. The City invests in these investments for purposes of portfolio diversification. 39 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 The City's investments are categorized to give an indication of the level of custodial credit 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, 1994 are as follows: U.S. Government Securities (including securities insured by the U.S. Government) Government money market mutual funds Total investments Custodial Credit Risk Category Carrying Market 1 2 3 Value Value $10,762,435 $ - $ - $10,762,435 $9,807,427 Assets held by deferred compensation trustees SUMMARY OF CASH AND INVESTMENTS Cash and investments at December 31, 1994 are summarized as follows: Deposits Cash on hand Investments Total cash and investments Assets held by deferred compensation trustees (recognized at market value) 4,459,086 4,422,770 $15,221,521 $14,230,197 $2,045,940 $2,045,940 City HRA Total $813,898 $445,118 $1,259,016 4,800 75 4,875 15,221,521 - 15,221,521 $16,040,219 $445,193 $16,485,412 $1,860,493 $185,447 $2,045,940 Note 3 LEGAL COMPLIANCE /BUDGETS Total actual expenditures exceeded budgeted expenditures (appropriations) in the following funds for 1994: Budgeted Actual Over Expenditures Expenditures Budget Special Revenue Funds: D.A.R.E. Program $4,965 $7,071 $2,106 40 I CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 Note_ 4 INTERGOVERNMENTAL RECEIVABLES Intergovernmental receivables at December 31, 1994 presented as due from other governmental units are composed of the following: City: General Fund: State of Minnesota $5 City of St. Anthony 645 Anoka County 26,248 City of Hilltop 6,495 City of Minneapolis 613 Independent School District #13 11,801 Total General Fund 45,807 Special Revenue Funds: Federal Police Grant - City of Hilltop 10,520 Municipal State Aid - State of Minnesota 49,113 Cable Television - City of Hilltop 5,291 Paratransit - City of Fridley 12,791 Total Special Revenue Funds 77,715 ' Capital Project Funds: Capital improvement projects - City of Fridley 13,611 Enterprise Funds: Sewer - M.W.C.C. 152,379 Refuse - Anoka County 23,406 Liquor - State of Minnesota 2,326 Total Enterprise Funds 178,111 ' Total City 315,244 HRA: Anoka County 121,295 ' HUD 28,728 Total HRA 150,023 Total Intergovernmental Receivables $465,267 41 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 INTERCEPTOR ACQUISITION CONTRACT RECEIVABLE 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 %. The MWCC merged with the Metropolitan Council during 1994 to form the Metropolitan Council Wastewater Services (MCWS). As of December 31, 1994, a balance of $116,751 remained to be collected over the next six 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 MCWS for deferments of reserve capacity costs granted to other communities. The balance of this receivable from MCWS at December 31, 1994 was $1,239 and is collectible over the next four years. Loans receivable at December 31, 1994 consist of the following: City: HRA: Sheffield Redevelopment $10,530 Business Revolving Loans 51,035 Home Improvement Loans 2,302 Mortgage Loans 75,089 Anoka County Community Action Program (ACCAP) Loans 176,161 Total HRA 304,587 Total $315,117 The HRA loans relate primarily to personal residences of lower income individuals under a Community Development Program. 42 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 Note 6 INTERFUND RECEIVABLES AND PAYABLES Individual fund interfund receivables and payables at December 31, 1994 consist of the following: City: General Fund Special Revenue Funds: Parking Housing Mortgage Capital Project Funds: Capital Improvements 401 Sheffield Redevelopment Debt Service Fund: Tax Increment Bonds Enterprise Fund: Liquor Sewer Total City HRA: General Fund Special Revenue Funds Capital Project Funds Total HRA Total Interfund Interfund Receivables Payables $79,609 $ - 408,027 - 446,352 - 79,609 - 1,022,031 854,379 169,000 - 853,031 - 1,956,019 1,956,019 211,210 - - 125,067 - 86,143 211,210 211,210 $2,167,229 $2,167,229 43 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 Note 7 INTERFUND TRANSFERS From To Amount Purpose Operating: Fund projects Sewer Utility Replacement fixed assets General DARE Project $2,600 Fund DARE Program General Infrastructure 50,000 Fund future improvements General Energy management 64,748 Energy improvements General Library 7,500 Fund City portion General Policelfire contingency 162,003 Fund future expense Liquor Capital Improvement General Government Bldg. 25,000 Fund building improvements Central Garage Central Garage Equipment Replacement Account 4,000 Garage building improvements Tax Increment Bonds 1991A Tax Increment Bonds 1987A 6,515,000 Debt service Tax Increment Bonds Tax Increment Bonds of 1984 167,880 Debt service Tax Increment Bonds Tax Increment Bonds of 1987A 950,218 Debt service Tax Increment Bonds Tax Increment Bonds of 1991A 174,770 Debt service Tax Increment Bonds Capital Appreciation Bonds of 1990 360 Debt service Capital Improvement Projects Capital Improvement 5,359 Close projects Tax Increment Bonds Tax Increment Bonds of 1993A 191,456 Debt service Water Utility Water Capital Equipment Replacement Account Water Capital Equipment Replacement Account Water Utility Water Capital Construction Account Water Utility Sewer Utility Sewer Capital Equipment Replacement Account Liquor Infrastructure hwurance Capital Equipment Replacement Parking Ramp Assessment Sheffield Redevelopment Sewer Capital Equipment Replacement Capital Improvement Projects Cable Television Paratransit Liquor Water Utility Refuse Utility Liquor Sewer Utility Library Sewer Utility General General General General General General Capital Equipment Replacement General General General Compensated Absences General Federal Police Grant General Community Police Municipal State aid General Municipal State aid Capital Improvement Capital Equipment Replacement Data processing Data processing Data processing Data processing Data processing Total operating transfers Insurance Fixed assets replacement Sewer Capital Construction Sewer Water Utility Fund projects Sewer Utility Replacement fixed assets Refuse Utility Fund future improvements Liquor Equipment replacement Central Garage Redevelopment costs E 15,000 Fixed assets replacement 11,622 Fixed asset replacement 30,982 Fund projects 25,000 Replacement fixed assets 150,000 Fund future improvements 7,702 Equipment replacement 300,000 Redevelopment costs 12,213 Equipment replacement 54,650 Administrative labor 49,102 Administrative labor 3,393 Administrative labor 55,834 Administrative labor 59,946 Administrative labor 86,113 Administrative labor 140,000 Replacement fixed assets 59,946 Administrative labor 6,597 Administrative labor 150,000 Reserve for compensated absences 135,623 City portion of grant 7,500 City portion of grant 74,964 State aid street maintenance 41,555 Fund projects 7,703 Equipment replacement 39,399 Fund projects 11,700 Fund data processing services 11,700 Fund data processing services 11,700 Fund data processing services 31,000 Fund data processing services 11,700 Fund data processing services $9.923.538 I CITY OF COLUMBIA HEIGHTS, MINNESOTA ' NOTES TO FINANCIAL STATEMENTS December 31, 1994 Note 8 FIXED ASSETS Balance ' The following is a summary of changes in the General Fixed Assets Account Group during the fiscal year: Balance Balance Balance January 1, December 31, December 31, City 1994 Additions Retirements 1994 Land $3,132,099 $ - $ $3,132,099 Buildings 3,068,022 32,429 _ 3,100,451 Improvements other than buildings 1,443,626 28,161 - 1,471,787 Machinery and equipment 4,357,038 191,235 180,419 4,367,854 ' Construction in process 603,333 322,210 925,543 Total City general fixed assets $12,604,118 $574,035 $180,419 $12,997,734 45 Balance Balance January 1, December 31, HRA 1994 Additions Retirements 1994 Land $69,688 $ - $ $69,688 Buildings and structures 4,706,587 130,135 _ 4,836,722 Furniture and fixtures 345,962 1,516 - 347,478 Total HRA general fixed assets $5,122,237 $131,651 $0 $5,253,888 The following is a summary of Proprietary Fund Type fixed assets at December 31, 1994: Water Sewer Refuse Total Internal Total Utility Utility Utility Liquor Enterprise Service proprietary Land $45,223 $36,586 $ $13,051 $94,860 $ $94,860 Buildings 233,836 46,290 - 245,016 525,142 712,183 1,237,325 Improvements other than buildings 2,865,332 3,100,742 2,890 104,538 6,073,502 436,460 6,509,962 Machinery and equipment 1 288,940 473,268 5,607 356,168 1,123,983 118,007 1,241,990 _. Construction in process 213,852 213,852 213,852 Total 3,433,331 3,870,738 8,497 718,773 8,031,339 1,266,650 9,297,989 Less accumulated depreciation 1,729,519 2,066,767 4,319 373,998 4,174,603 441,095 4,615,698 Net fixed assets $1,703,812 $1,803,971 $4,178 $344,775 $3,856,736 $825,555 $4,682,291 45 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 Note 9 OPERATING LEASES The City has leased premises for a liquor store (Top Valu) under a five -year lease agreement that originally expired in 1989. This lease has been renewed through December 31, 1999. This lease is considered for accounting purposes to be an operating lease. Lease expenditures for the year ended December 31, 1994 amounted to $98,838. The City also has leased premises for its Top Valu II liquor store under a five -year lease expiring February 28, 1998, with a five -year renewal option in 1997 and 2002. The lease calls for fixed minimum payments of $3,051 per month. The City is also required to pay all utilities and a pro -rata share of real estate taxes. This lease is considered for accounting purposes to be an operating lease. Lease expenditures for the year ended December 31, 1994 amounted to $57,262. Future minimum rental payments are as follows: Top Valu Top Valu II 1995 $88,785 $36,610 1996 88,785 36,610 1997 88,785 36,610 1998 88,785 6,102 1999 88,785 - Total $443,925 $115,932 Note 10 CAPITAL LEASE The City leases equipment under a lease - purchase option agreement dated November 1, 1992 with an interest rate of 4.54 %. During the term of this lease, legal title to the equipment remains with the lessor. Full and legal title to the equipment will pass to the City upon completion of all rental payments as detailed below or the exercise by the City of its option to purchase the equipment per the terms of the lease. Future rental payments are as follows: Principal Interest Total 1995 $95,173 $25,317 $120,490 1996 99,548 20,942 120,490 1997 104,124 16,366 120,490 1998 108,910 11,580 120,490 1999 113,916 6,574 120,490 2000 58,906 1,339 60,245 Total $580,577 $82,118 $662,695 Ertl CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 For accounting purposes, this lease is considered a capital lease. The related assets recorded in the financial statements are as follows: Equipment $700,000 Accumulated depreciation (200,000) Net $500,000 11 LONG -TERM 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 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: Original Interest Issue Issue Rate Date Tax Increment Bonds: General Obligation Tax Increment Refunding Bonds of 1987, Series A $9,090,000 7.00- 7.50% 6/1/87 General Obligation Tax Increment Capital Appreciation Bonds of 1990 Principal 2,399,721 6.90- 7.15% 8/23/90 General Obligation Tax Increment Refunding Bonds of 1991 6,670,000 4.75 - 5.80% 12/1/91 General Obligation Tax Increment Refunding Bonds of 1993 735,000 3.80 - 5.15% 7/1/93 Final Maturity Balance Date End of Year 3/1/02 $35,000 9/1/09 2,399,721 3/1/02 6,670,000 2/1/97 575,000 $9,679,721 47 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 Annual debt service requirements to maturity for general obligation bonds including interest of $5,832,823 are as follows: Fiscal Year Ending December 31 Total 1995 1996 1997 1998 1999 Thereafter $1,447,961 1,459,268 1,401,128 1,180,390 1,085,167 8,938,630 Totals $15,512,544 At December 31, 1994, a total of $1,171,524 is available in Debt Service Funds to service the General Obligation Tax Increment Bonds. There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions. The Tax Increment Bonds are payable from the amount of increase in the property taxes on the property in the Tax Increment District. Any deficiencies in revenues 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: A. 1977 Downtown CBD Revitalization Plan A3 Type of District Authorizing Law Duration of District Original Tax Capacity Current Tax Capacity (for taxes collectible in 1994) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1994 .• Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $174,323 $1,034,846 $860,523 $28,434,721 $19,330,000 $9,104,721 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 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 1994) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1994 C. 1984 University Avenue Redevelopment C8 Type of District Authorizing Law Duration of District Original Tax Capacity Current Tax Capacity (for taxes collectible in 1994) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1994 D. 1987 Sullivan Lake Development H2 Type of District Authorizing Law ' Duration of District Original Tax Capacity Current Tax Capacity (for taxes collectible in 1994) ' Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1994 E. 1989 Multi -Use Redevelopment Plan K2 ' Type of District Authorizing Law tDuration of District Original Tax Capacity Current Tax Capacity (for taxes collectible in 1994) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1994 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $37,598 $70,006 $32,408 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $25,176 $107,243 $82,067 $1,070,000 $1,070,000 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $41,720 $101,862 $60,142 $1,835,000 $1,260,000 $575,000 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) October 4, 2014 $215,872 $164,696 ,• CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 Changes in Long -Term Liabilities - During the year ended December 31, 1994, the following changes occurred in liabilities reported in the General Long -Term Debt Account Group: Balance HRA January 1 Liability for compensated Balance Additions Reductions December 31 absences $10,711 $ - $308 $10,403 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, 1994, accreted interest of $767,972 was included in general long -term debt for the 1990 Tax Increment Capital Appreciation Bonds. Note 12 FUND EOUITY The following funds had a fund deficit as of December 31, 1994: Fund Deficit City: Capital Project Funds: Capital Improvement Fund 401 $71,534 Sheffield Redevelopment Fund 584,288 Internal Service Funds: Energy Management 8,282 HRA: Capital Project Fund 86,143 The City will finance these deficits through external or internal sources in future years. WE Balance Balance City January 1 Additions Reductions December 31 Note payable to HRA $15,228 $ - $765 $14,463 General Obligation Tax Increment Bonds: Principal 17,209,721 - 7,530,000 9,679,721 Accreted interest 556,684 211,288 - 767,972 Liability for compensated absences 362,043 11,227 - 373,270 Total City $18,143,676 $222,515 $7,530,765 $10,835,426 Balance HRA January 1 Liability for compensated Balance Additions Reductions December 31 absences $10,711 $ - $308 $10,403 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, 1994, accreted interest of $767,972 was included in general long -term debt for the 1990 Tax Increment Capital Appreciation Bonds. Note 12 FUND EOUITY The following funds had a fund deficit as of December 31, 1994: Fund Deficit City: Capital Project Funds: Capital Improvement Fund 401 $71,534 Sheffield Redevelopment Fund 584,288 Internal Service Funds: Energy Management 8,282 HRA: Capital Project Fund 86,143 The City will finance these deficits through external or internal sources in future years. WE CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 For various reasons, certain funds have a portion of their fund equity reserved or designated for specific purposes. A discussion of each such item as it appears on the Combined Balance Sheet follows: A. RESERVATION OF RETAINED EARNINGS Reserve for Insurance - This reserve in the Insurance Internal Service Fund represents funds set aside to pay any claims from the period during which the City had no commercial insurance, and funds set aside to pay any amounts that may arise from a claim that exceeded the limits of current commercial policies. Reserve for Capital Replacement/Construction - This reserve in the Water and Sewer Enterprise Funds and the Central Garage Internal Service Fund represents funds set aside to pay for appropriate future capital replacement/construction projects. Reservations of retained earnings are summarized as follows at December 31, 1994: Reserve for capital replacement/construction: Water Utility Fund Sewer Utility Fund Central Garage Fund Reserve for insurance Total B. RESERVATION OF FUND BALANCES Internal Enterprise Service Total $15,692 $495,745 $ - $495,745 2,241,058 - 2,241,058 - 44,936 44,936 - 938,887 938,887 $2,736,803 $983,823 $3,720,626 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. 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. Reserved for Real Estate Held for Resale -This amount represents a financial resource which is not currently available. Reservations of fund balances at December 31, 1994 are summarized as follows: Reserve for prepayments Reserve for program expenditures Reserve for real estate held for resale Reserve for community development Totals City HRA Total $15,692 $7,085 $22,777 453,478 - 453,478 449,000 21,114 470,114 - 176,163 176,163 $918,170 $204,362 $1,122,532 51 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 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. Designated for PVVS Maintenance - This amount represents funds set aside by the HRA to provide for maintenance costs in future years at Parkview Villa South senior housing. Designations for unreserved fund balances at December 31, 1994 are summarized as follows: The City maintains four Enterprise Funds which are intended to be self- supporting. Financial segment City of Columbia Heights information as of and for the year ended December 31, 1994 is as follows: Component Special Debt Capital Expendable Unit Liquor General Revenue Service Project Trust HRA Total Designated for compensated absences $ - $ $ - $ $370,245 $ $370,245 Designated for debt service 1,171,524 175,179 - - 1,171,524 Designated for subsequent years' expenditures 1,003 6,376 - 116,234 162,003 - 285,616 Designated for working capital 3,430,141 - Total operating transfers - - (97,813) 3,430,141 Designated for PVVS maintenance - , Property, plant and equipment additions 23,245 57,219 249,577 249,577 Designated for Business Revolving Loan Fund - Net working capital - - 43,964 43,964 Total designated unreserved fund balance $3,431,144 $6,376 $1,171,524 $116,234 $532,248 $293,541 $5,551,067 The City maintains four Enterprise Funds which are intended to be self- supporting. Financial segment information as of and for the year ended December 31, 1994 is as follows: Water Sewer Refuse Liquor Total Operating revenue $1,134,756 $982,985 $1,323,832 $5,517,257 $8,958,830 Depreciation expense 83,930 107,500 1,022 55,298 247,750 Operating income (loss) 175,179 (93,082) 183,194 253,735 519,026 Net income (loss) 143,518 (60,448) 161,657 (114,525) 130,202 Total operating transfers (63,943) (63,944) (97,813) (401,834) (627,534) , Property, plant and equipment additions 23,245 57,219 808 9,586 90,858 Net working capital 1,140,603 2,422,748 910,688 896,637 5,370,676 Net cash provided by operating activities 226,656 (49,122) 285,737 222,544 685,815 Total assets 2,919,238 4,431,107 915,535 1,654,892 9,920,772 ' Total equity - contributed 804,219 629,202 - - 1,433,421 Total equity - retained earnings 2,040,196 3,715,507 914,866 1,241,412 7,911,981 52 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 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 Utility Utility Garage Total Balance - beginning of year $830,513 $668,137 $188,849 $1,687,499 Less: Depreciation on contributed assets (26,294) (38,935) - (65,229) Balance - end of year $804,219 $629,202 $188,849 $1,622,270 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, 1994 was $2,698,993 and $1,172,025, respectively; the City's total payroll was $4,481,050. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon the death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for Coordinated and Basic members. The retiring member receives the higher of step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic member is 2.0% of the average salary for each of the first ten years of service and 2.5% for each remaining year. For a Coordinated member, the annuity accrual rate is 1.0% of the average salary for each of the first ten years and 1.5% for each remaining year. Using Method 2, the annuity accrual rate is 2.5% of the average salary for Basic members and 1.5% for Coordinated members. For PEPFF members, the annuity accrual rate is 2.65% for each year of service through June 30, 1994. (Effective July 1, 1993, the annual accrual rate for PEPFF is 2.65 percent.) For PERF members whose annuity is calculated using Method 1, and for all PEPFF members, a full annuity is available when age plus years of service equal 90. There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree. No survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service, in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. 53 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 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) 4.30% 4.60% 9.58% PEPFF 7.90% 11.70% 17.45% The recommended rates scheduled above represent the required rates for fiscal year 1994 contributions as reported in the July 1, 1993, actuarial valuation reports. Total contributions made by the City during the fiscal year ended December 31, 1994 were: The City's contribution for the year ended December 31, 1994 to the PERF represented .111 percent of total contributions required of all participating entities. For the PEPFF, contributions for the year ended December 31, 1994, represented .412 percent of total contributions required of all participating entities. C. FUNDING STATUS AND PROGRESS Pension Benefit Obli ag tion 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 Percentage of Amount Covered Payroll Employees Employer Employees Employer PERF $121,733 $132,777 4.51% 4.92% PEPFF 89,277 133,915 7.62% 11.43% Totals $211,010 $266,692 The City's contribution for the year ended December 31, 1994 to the PERF represented .111 percent of total contributions required of all participating entities. For the PEPFF, contributions for the year ended December 31, 1994, represented .412 percent of total contributions required of all participating entities. C. FUNDING STATUS AND PROGRESS Pension Benefit Obli ag tion 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, 1994 The pension benefit obligations as of June 30, 1994 are shown below: (In thousands) Total pension benefit obligation Net assets available for benefits, at cost (Market Values for PERF = $4,762,519; PEPFF = $1,237,484) Unfunded (assets in excess of) pension benefit obligation PERF PEPFF $5,625,598 $1,020,950 4,733,845 1,229,769 $891,753 ($208,819) The measurement of the pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available to pay pension benefits were valued as of June 30, 1994. For the PERF, significant actuarial assumptions used in the calculation of the pension benefit obligation include (a) a rate of return on the investment of present and future assets of 8.5 % per year, compounded annually, prior to retirement, and 5% per year, compounded annually, following retirement; (b) projected salary increases taken from a select and ultimate table; (c) payroll growth at 6% per year, consisting of 5% for inflation and 1% due to growth in group size; (d) post- retirement benefit increases that are accounted for by the 5% rate of return assumption following retirement; and (e) mortality rates based on the 1983 Group Annuity Mortality Table set forward one year for retired members and set back five years for each active member. Actuarial assumptions used in the calculation of the PEPFF include (a) a rate of return on the investment of present and future assets of 8.5% per year, compounded annually, prior to retirement, and 5% per year, compounded annually, following retirement; (b) projected salary increases of 6.5% per year, compounded annually, attributable to the effects of inflation; (c) post - retirement increases that are accounted for by the 5% rate of return assumption following retirement; and (d) mortality rates based on the 1971 Group Annuity Mortality Table projected to 1984 for males and females. ' Chanizes in Plan Provisions The 1994 legislative session did not include any benefit improvements which would impact funding costs for the PERF and the PEPFF ' Changes in Actuarial Assumptions Prior to fiscal year 1994, the salary increase assumption and the mortality tables used in the calculation of pension benefit obligation for the PERF were the same as those specified for the PEPFF. For the July 1, 1994 actuarial valuation, PERA's board of trustees approved new mortality rates updated to the ' 1983 Group Annuity Mortality Table, salary increases which were changed to a select and ultimate table and a new payroll growth assumption which was changed from 6.5% to 6 %. These changes were made to reflect actual experience of the plan. With the adoption of the actuarial assumption changes and the new mortality tables for the PERF, the pension benefit obligation increased $56,596,000. The actuarial assumption changes also necessitated a $81,201,000 transfer from the PERF Benefit Reserve to the PERF Minnesota Post Retirement Investment Fund (MPRIF) Reserve to finance the increased obligation for future retirement benefits. The change in the mortality rate assumption increased the PERF s costs because pensioners are living longer than assumed previously. The change in the salary increase assumption, however, offset some of the additional costs because lower salary increases generally translate into lower benefit liabilities in the future. 55 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 Potential changes in the assumptions used for the PEPFF may be made in the future after completion of a special experience study for that fund. Completion of the PEPFF experience study is expected by February 1, 1995. 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, 1994. 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, 1994, and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. Certain full -time and volunteer firefighters and policemen of the City participate in one of two 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, 1994 is summarized as follows: Single Employer Fire Relief Association - Volunteer Division Pension benefit obligation $549,936 Agent - Multiple Employer Police and Fire Consolidation Fund (PFCF) Total $5,830,062 $6,379,998 Net assets available for pension benefits 959,918 5,102,155 6,062,073 Unfunded (assets in excess of) pension benefit obligation ($409,982) $727,907 $317,925 56 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 1 A. PLAN DESCRIPTION The Columbia Heights Fire Department Relief Association - Paid Division and the Columbia Heights Police Relief Association were consolidated into the Police and Fire Consolidation Fund (PFCF) of the Statewide Public Employee's Retirement Association (PERA) on January 1, 1994 and April 30, 1994, respectively. Essentially this means that administration of Associations' affairs will henceforth be handled by PERA, with the Associations' Board of Directors being abolished It also means that nonretired members of the Associations have the choice of receiving benefits under the Associations by -laws, or the PERA Police and Fire Fund ( PEPFF) benefits schedule. The PFCF is an agent, multiple- employer defined benefit plan. The City's payroll for employees covered by the PFCF for the year ended December 31, 1994 was $189,152; the City's total payroll was $4,481,050. B. RELATED PARTY INVESTMENTS During 1994, the PFCF held no securities issued by the City or other related parties. C. FUNDING STATUS AND PROGRESS The amount shown below 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 and step -rate benefits, estimated to be payable in the future as a result of service to date. The measure is intended to help users assess the funding status of the PFCF on a going- concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the PFCF. A variety of significant actuarial assumptions are used to determine the standardized measure of the pension benefit obligation for members electing Association benefits and these assumptions are summarized below: • The interest rate was assumed to be 8.5% per annum. • Future pension payments reflect an assumption of a 6% (compounded annually) salary increase, attributable to inflation and growth in group size. • Future pension payments reflect an assumption of a 5% increase in post retirement benefits. • Actuarial assumptions for PFCF members electing PEPFF benefits are the same as for PEPFF members. Some actuarial assumptions used may vary for those who choose benefit provisions of the former relief associations. 57 Net assets available for benefits, at market (cost was not available) 1,742,658 3,359,497 5,102,155 Unfunded (assets in excess of) pension benefit obligation $289,698 $438,209 $727,907 CITY OF COLUMBIA HEIGHTS, MINNESOTA The valuation of the pension benefit obligation at June 30, 1994 was affected by the benefit provision option available due to the consolidation into the PFCF. The dollar amount of this change was not NOTES TO FINANCIAL STATEMENTS December 31, 1994 D . CONTRIBUTIONS REQUIRED AND CONTRIBUTIONS MADE , entry age normal actuarial cost method. Normal cost is funded on a current basis. The unfunded actuarial accrued liability is to be funded by December 31, 2010. The City's minimum obligation is the financial requirement for the year less anticipated member contributions and State aids. Any , additional payments by the City shall be used to amortize the unfunded liability of the PFCF. The funding strategy for normal cost and the unfunded actuarial accrued liability should provide sufficient The standardized measure of the unfunded pension benefit obligation as of June 30, 1994 (the latest actuarial valuation available) is as follows: 11.4% of gross wages plus the actuarially determined additional contribution. Contributions to the PFCF in 1994 amounts to $35,939 of which $21,563 and $14,376 were made by the City of Fire Account Police Account Total Pension benefit obligation funding for normal cost. The City also contributed an additional $117,725 for the amortization of the , , Retirees and beneficiaries currently receiving benefits amounts actually paid, the City and PERA consider that all required contributions were made. Significant actuarial assumptions used to compute pension contribution requirements are substantially ' and terminated employees not yet receiving benefits $1,591,156 $2,547,811 $4,138,967 Accumulated employee contributions including allocated investment income 31,502 184,372 215,874 Employer financed 409,698 1,065,523 1,475,221 ' Total pension benefit obligation 2,032,356 3,797,706 5,830,062 Net assets available for benefits, at market (cost was not available) 1,742,658 3,359,497 5,102,155 Unfunded (assets in excess of) pension benefit obligation $289,698 $438,209 $727,907 The valuation of the pension benefit obligation at June 30, 1994 was affected by the benefit provision option available due to the consolidation into the PFCF. The dollar amount of this change was not available. D . CONTRIBUTIONS REQUIRED AND CONTRIBUTIONS MADE Financial requirements of the PFCF are determined through an annual actuarial valuation, using the entry age normal actuarial cost method. Normal cost is funded on a current basis. The unfunded actuarial accrued liability is to be funded by December 31, 2010. The City's minimum obligation is the financial requirement for the year less anticipated member contributions and State aids. Any , additional payments by the City shall be used to amortize the unfunded liability of the PFCF. The funding strategy for normal cost and the unfunded actuarial accrued liability should provide sufficient resources to pay PFCF benefits on a timely basis. PFCF members are required by State Statute to contribute 7.6% of wages, while the City contributes 11.4% of gross wages plus the actuarially determined additional contribution. Contributions to the PFCF in 1994 amounts to $35,939 of which $21,563 and $14,376 were made by the City of Columbia Heights and its employees, respectively. The contributions made by the City of Columbia Heights and its employees represent 11.4% and 7.6% respectively, of total covered payroll. The contributed amounts were actuarially determined as described above. These contributions represent funding for normal cost. The City also contributed an additional $117,725 for the amortization of the , unfunded actuarial accrued liability. Since the actuarially determined contribution requirements were the amounts actually paid, the City and PERA consider that all required contributions were made. Significant actuarial assumptions used to compute pension contribution requirements are substantially ' the same as those used to determine the standardized measure of the pension obligation. 58 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 E. HISTORICAL TREND INFORMATION Historical trend information for the PFCF is presented in PERA's Comprehensive Annual Financial Report for the year ended June 30, 1994. The information is presented to enable the reader to assess the progress made in accumulating sufficient assets to pay pension benefits as they become due. Historical information for the three most recent years is as follows: Net assets available for benefits as a percent of the pension benefit obligation (PBO) Unfunded PBO as a percent of covered payroll Employer's contribution as a percent of covered payroll * *Made in accordance with actuarially determined requirements. June 30, 1994 1993 1992 88% Not Available Not Available 385% Not Available Not Available 11.4% Not Available Not Available Note 18 DEFINED BENEFIT PENSION PLANS FIRE RELIEF ASSOCIATION VOLUNTEER DIVISION A. PLAN DESCRIPTION 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. B. PENSION BENEFITS The bylaws, as amended in September, 1992, provide for monthly pensions of $17.83 per year of service, for up to 30 years of service. Alternatively, members may elect a lump sum payment of $2,562.31 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. 59 HEIGHTS MINNESOTA CITY O F COLUMBIA G S, NOTES TO FINANCIAL STATEMENTS December 31, 1994 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 using the entry age actuarial cost method. Significant actuarial assumptions used to calculate contribution requirements were the same as these used to compute the required reserves. During the year ended December 31, 1994, contributions totaling $35,801 (all employer) were made in accordance with contribution requirements determined by an actuarial valuation of the Plan as of December 31, 1992. 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 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 and (b) the assumption that benefits will not increase after retirement. At December 31, 1994, the assets in excess of the pension benefit obligation were $409,982, determined as follows: Pension benefit obligation Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $352,387 Current employees: Accumulated employee contributions including allocated investment income - Employer financed 197,549 Total pension benefit obligation 549,936 Net assets available for benefits, at cost (market value was $949,137) 959,918 (Assets in excess of) pension benefit obligation ($409,982) .1, CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 E. HISTORICAL TREND INFORMATION Three -Year Historical Trend Information December 31, 1994 1993 1992 Net assets available for benefits as a percentage of pension benefit obligation 175% 165% 156% Unfunded (assets in excess of) pension N/A N/A N/A benefit obligation, as a percentage of annual covered payroll Employer's contribution as a percentage of annual covered payroll 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 1994, the Association held no securities issued by the City or other related parties. Note 19 DEFERRED COMPENSATION PLAN The government offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The Plan, available to all government employees, permits them to defer a portion of their salary until future years. Participation in the Plan is optional. The deferred compensation is not available to ' employees until termination, retirement, death, or unforeseeable emergency. 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. tInvestments 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. 61 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 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 attorneys have indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the City attorneys, remotely recoverable by plaintiffs. C. FEDERAL AND STATE FUNDS Amounts received or receivable from federal and state agencies are subject to agency audit and adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of funds which may be disallowed by the agencies cannot be determined at this time although the HRA expects such amounts, if any, to be immaterial. 62 ' COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP IFINANCIAL STATEMENTS C1cl l� CITY OF COLUMBIA HEIGHTS, MINNESOTA ' u C 64 1 GENERAL FUND The Home Rule Charter of the City of Columbia Heights provides in Section 69, Subdivision (c): "A General Fund for the support of such other funds and for the payment of such expenses of the City as the Council may deem proper. Into this fund shall be paid all monies not herein provided to paid (sic) into any other fund." 65 CITY OF COLUMBIA HEIGHTS, MINNESOTA 0 t lJ 66 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND Statement 6 BALANCE SHEET December 31, 1994 With Comparative Amounts For December 31, 1993 Asset 1994 1993 Cash and investments $3,510,576 $3,139,309 Receivables: Accounts 6,464 11,001 Taxes: Unremitted 21,309 49,259 Delinquent 79,071 123,285 Interest 20,482 10,515 Due from other governmental units 45,807 56,896 Due from other funds 79,609 149,376 Due from component unit 4,421 7,648 Prepayments 13,264 9,496 Total assets $3,781,003 $3,556,785 Liabilities and Fund Balance Liabilities: Accounts payable $37,413 $98,670 Accrued salaries and withholdings payable 115,793 120,105 Due to other governmental units 76,888 4,526 Due to component unit 1,430 3,510 Deferred revenue 105,071 148,035 Total liabilities 336,595 374,846 Fund balance: Reserved for prepayments 13,264 9,496 Unreserved: Designated for subsequent years' expenditures 1,003 17,771 ' Designated for working capital 3,430,141 3,154,672 Total fund balance 3,444,408 3,181,939 Total liabilities and fund balance $3,781,003 $3,556,785 1 67 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, 1994 With Comparative Actual Amounts For The Year Ended December 31, 1993 Expenditures: General government: Council 235,817 1994 (56,967) 186,245 Manager 283,836 269,901 Over 294,803 Legal 185,115 195,799 (under) 1993 Finance and elections Budget Actual Budget Actual Revenues: 109,348 106,983 (2,365) 105,248 Taxes $2,200,351 $2,168,081 ($32,270) $2,060,355 Licenses and permits 140,450 165,696 25,246 135,545 Intergovernmental 3,238,577 3,268,867 30,290 3,181,600 Charges for services 409,269 348,160 (61,109) 347,513 Fines and forfeitures 100,150 87,225 (12,925) 89,464 Interest 120,000 127,048 7,048 179,000 Other revenues: Miscellaneous 24,750 63,813 39,063 20,640 Proceeds from sale of land 500 2,800 2,300 - Total revenues 6,234,047 6,231,690 (2,357) 6,014,117 Expenditures: General government: Council 235,817 178,850 (56,967) 186,245 Manager 283,836 269,901 (13,935) 294,803 Legal 185,115 195,799 10,684 176,788 Finance and elections 490,180 457,304 (32,876) 503,354 Assessing 109,348 106,983 (2,365) 105,248 Planning 19,683 13,092 (6,591) 22,571 General government buildings 168,738 130,614 (38,124) 152,594 Total general government 1,492,717 1,352,543 (140,174) 1,441,603 Public safety: Police /animal/civil defense 1,978,590 1,779,349 (199,241) 1,877,463 Fire 695,806 679,632 (16,174) 680,944 Inspections 127,146 118,006 (9,140) 120,865 Total public safety 2,801,542 2,576,987 (224,555) 2,679,272 Public works: 6,500,466 5,839,792 (660,674) 6,055,098 Engineering 272,130 271,319 (811) 228,920 Maintenance 706,928 570,542 (136,386) 578,070 Total public works 979,058 841,861 (137,197) 806,990 Other departments: Sanitation 165,597 100,111 (65,486) 149,054 Parks and recreation 1,061,552 966,561 (94,991) 977,911 Contingencies - 1,729 1,729 268 Total other departments 1,227,149 1,068,401 (158,748) 1,127,233 Total expenditures 6,500,466 5,839,792 (660,674) 6,055,098 •: CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND Statement 7 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - Page 2 of 2 BUDGET AND ACTUAL For The Year Ended December 31, 1994 With Comparative Actual Amounts For The Year Ended December 31, 1993 1994 Revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers (out) Total other financing sources (uses) 11 Net increase (decrease) in fund balance Fund balance - January 1 Residual equity transfers Fund balance - December 31 Over (under) 1993 Budget Actual Budget Actual ($266,419) $391,898 $658,317 ($40,981) 392,031 450,545 58,514 406,961 (282,348) (579,974) (297,626) (196,505) 109,683 (129,429) (239,112) 210,456 ($156,736) 262,469 $419,205 169,475 3,181,939 $3,444,408 2,925,866 86,598 $3,181,939 •' CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND Statement 8 SCHEDULE OF REVENUES - BUDGET AND ACTUAL For The Year Ended December 31, 1994 With Comparative Actual Amounts For The Year Ended December 31, 1993 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 Shade tree Police Relief Association Fire Relief Association County aid: Street maintenance County grant School district Total intergovernmental Charges for services: General government Public safety Public works Parks and recreation Total charges for services Fines and forfeitures 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 70 1994 Over (under) 1993 Budget Actual Budget Actual $2,193,351 $2,157,231 ($36,120) $2,047,566 7,000 10,850 3,850 12,789 2,200,351 2,168,081 (32,270) 2,060,355 88,450 94,459 6,009 77,276 52,000 71,237 19,237 58,269 140,450 165,696 25,246 135,545 4,185 3,510 (675) 4,910 - 3,290 3,290 370 2,025,418 2,025,418 - 1,919,439 964,991 964,991 - 1,009,673 8,000 7,225 (775) 7,050 - - - 5,000 123,545 144,482 20,937 128,607 61,376 54,842 (6,534) 52,621 18,060 18,060 - 18,060 - 13,382 13,382 4,325 33,002 33,667 665 31,545 3,238,577 3,268,867 30,290 3,181,600 59,153 38,671 (20,482) 43,844 133,816 135,407 1,591 126,130 47,200 21,710 (25,490) 28,526 169,100 152,372 (16,728) 149,013 409,269 348,160 (61,109) 347,513 100,150 87,225 (12,925) 89,464 100,150 87,225 (12,925) 89,464 120,000 127,048 7,048 179,000 8,250 5,383 (2,867) 19,203 500 2,800 2,300 - 16,500 58,430 41,930 1,437 145,250 193,661 48,411 199,640 $6,234,047 $6,231,690 ($2,357) 16,014,117 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL For The Year Ended December 31, 1994 With Comparative Actual Amounts For The Year Ended December 31, 1993 Statement 9 Total expenditures $6,500,466 $4,292,686 $1,521,717 $25,389 $5,839,792 ($660,674) $6,055,098 71 1994 Actual Supplies Over Personal and Capital (under) 1993 Budget Services Services Outlay Total Budget Actual Expenditures: General government: Council and manager: Council $235,817 $99,549 $79,011 $290 $178,850 ($56,967) $186,245 Manager 283,836 250,247 18,925 729 269,901 (13,935) 294,803 Legal 185,115 - 195,799 - 195,799 10,684 176,788 Total council and manager 704,768 349,796 293,735 1,019 644,550 (60,218) 657,836 Administrative services: Finance 457,541 380,220 52,303 1,503 434,026 (23,515) 484,067 Elections 32,639 21,752 980 546 23,278 (9,361) 19,287 Assessing 109,348 37,253 69,730 - 106,983 (2,365) 105,248 Planning 19,683 8,509 4,583 - 13,092 (6,591) 22,571 General government buildings 168,738 5,885 124,349 380 130,614 (38,124) 152,594 Total administrative services 787,949 453,619 251,945 2,429 707,993 (79,956) 783,767 Total general government 1,492,717 803,415 545,680 3,448 1,352,543 (140,174) 1,441,603 Public safety: Police 1,941,559 1,596,440 141,743 3,891 1,742,074 (199,485) 1,844,243 Fire 695,806 625,668 51,149 2,815 679,632 (16,174) 680,944 Inspections 127,146 102,070 10,141 5,795 118,006 (9,140) 120,865 Civil defense 26,219 12,782 11,444 - 24,226 (1,993) 20,775 Animal control 10,812 - 13,049 - 13,049 2,237 12,445 Total public safety 2,801,542 2,336,960 227,526 12,501 2,576,987 (224,555) 2,679,272 Public works, highways and streets: Engineering 272,130 186,515 83,410 1,394 271,319 (811) 228,920 Streets 542,903 234,680 186,312 1,274 422,266 (120,637) 423,932 Street lighting 122,072 1,336 103,875 - 105,211 (16,861) 109,718 Traffic signs /signals 41,953 28,666 14,399 - 43,065 1,112 44,420 Total public works, highways and streets 979,058 451,197 387,996 2,668 841,861 (137,197) 806,990 Other departments: Sanitation 165,597 40,833 58,728 550 100,111 (65,486) 149,054 Parks and recreation 1,061,552 660,281 300,058 6,222 966,561 (94,991) 977,911 Contingencies - - 1,729 - 1,729 1,729 268 Total other departments 1,227,149 701,114 360,515 6,772 1,068,401 (158,748) 1,127,233 Total expenditures $6,500,466 $4,292,686 $1,521,717 $25,389 $5,839,792 ($660,674) $6,055,098 71 erl 72 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources which finance specified activities as required _Yy law or administrative regulation. U ; Municipal State Aid Fund - maintained according to State Statute for maintenance and construction of streets or J municipal state aid systems. Cable Television Fund - established to account for revenues and expenditures associated with cable television franchise. Paratransit Fund - established by agreement with the Minnesota Department of Transportation to account for the 7r` Fe j 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. aU Library Fund - established in 1993 to account for revenues and expenditures of the library. Community Police Fund - established in 1992 to account for revenues and expenditures associated with grant received for Community Police Program for Hilltop. (,/U Project Pride Fund - established in 1992 to ensure that every a resident of the City has access to recreation programs. Housing Mortgage _Fund - established to account for proceeds and expenditures relating to housing mortgage refinancing proceeds which are not restricted for debt service. 6` Recreation Contributed Projects Fund - established to monitor �6 contributions for recreational activities and related expenditures. �j Contributed Projects Fund - established to monitor contributions and related expenditures. u Parking Ramp Fund - established to account for revenues from parking ramp assessment that are to be used for redevelopment. u� Confiscated Property Fund - established to account for funds from property confiscated by the police department. Federal Police Grant Fund - established to account for revenues and expenditures associated with a federal grant received for the hiring of additional police officers V o2 7G 73 CITY OF COLUMBIA HEIGHTS, MINNESOTA ��� G> b` e SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET V December 31, 1994 With Comparative Totals For December 31, 1993 Municipal State Cable D.A.R.E. Project Aid Television Paratransit Program Library Pride Assets Cash and investments Cash and investments held in escrow Receivables: Accounts Special assessments Interest Due from other governmental units Due from other funds Prepayments Total assets Liabilities and Fund Balance Liabilities: Accounts payable Accrued salaries and withholdings payable Contracts payable - retained percentage Due to other governmental units Due to other funds Deferred revenue Deposits Total liabilities Fund balance: Reserved for prepayments Reserved for program expenditures Unreserved: Designated for subsequent years' expenditures Undesignated Total fund balance Total liabilities and fund balance 74 $25,271 $309,914 $46,552 $1,710 $48,148 $3,275 17,303 - - - - - 2,564 366 - - 27 49,113 5,291 12,791 - - - - - - 128 - $74,384 $335,072 $59,709 $1,710 $48,276 $3,302 $5,096 $68 $4,154 334 - - 8,798 - - 14,228 68 4,154 $ - $4,284 $ - 6,840 - 0 11,124 0 - 128 - - - - - 6,376 - 60,156 335,004 55,555 1,710 30,648 3,302 60,156 335,004 55,555 1,710 37,152 3,302 $74,384 $335,072 $59,709 $1,710 $48,276 $3,302 $19,772 $6,471 $24,599 $194,405 $2,622 $110,821 $793,560 $812,779 - - - 446,352 Statement 10 17,303 28,942 j�✓ 528,045 137 - - 700 - - 3,794 3,084 _ - - 10,520 �'✓J Recreation 446,352 = = Housing Contributed Contributed Parking Confiscated Federal Totals Mortgage Projects Projects _ Ramp Property Pol. Grant 1994 1993 $19,772 $6,471 $24,599 $194,405 $2,622 $110,821 $793,560 $812,779 - - - 446,352 75 17,303 28,942 528,045 137 - - 700 - - 3,794 3,084 _ - - 10,520 77,715 80,495 446,352 = = 408,027 854,379 _ _ _ _ _ - 128 655 $466,261 $6,471 $24,599 $603,132 $2,622 $121,341 $1,746,879 $1,900,352 $ - $1,677 $ - $ - $ - $ - $15,279 $36,992 1,569 8,743 2,678 8,798 - 418 _ 11,564 _ - 554,712 - 180 - - - - 180 180 0 1,857 0 0 0 1,569 33,000 606,544 - _ _ _ _ - 128 655 453,478 - - - - - 453,478 446,352 _ _ _ _ - 6,376 369 12,783 4,614 24,599 603,132 2,622 119,772 1,253,897 846,432 466,261 4,614 24,599 603,132 2,622 119,772 1,713,879 1,293,808 $466,261 $6,471 $24,599 $603,132 $2,622 $121,341 $1,746,879 $1,900,352 75 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1994 With Comparative Totals For The Year Ended December 31, 1993 Municipal �- State Cable D.A.R.E. ommunity Aid Television Paratransit Program Library Police Revenues: Taxes $ - $ - $ - $ - $390,348 $ - Special assessments - - - - - - Intergovernmental 347,809 - 42,573 2,650 - 30,000 Fees/program revenues - 71,756 11,695 - 15,798 - Interest - 15,901 2,272 - - - Other revenues: Miscellaneous Contributions Total revenues Expenditures: Parks and recreation: Personal services Supplies Other services and charges Capital outlay Other: Personal services Supplies Other services and charges Capital outlay Total expenditures 9,288 5,291 20 270 55 - - - - 534 - - 357,097 92,948 56,560 3,454 406,201 30,000 51,219 845 1,896 273,028 31,037 482 896 456 3,505 67,542 - 31,809 32,245 49,675 1,670 51,590 - 176,269 - - - 3,661 - 259,779 33,986 50,131 7,071 395,821 31,037 Revenues over (under) expenditures 97,318 58,962 6,429 (3,617) 10,380 (1,037) Other financing sources (uses): Operating transfers in - - - 2,600 7,500 7,500 Operating transfers (out) (116,519) (49,102) (3,393) - (6,597) - Total other financing sources (uses) (116,519) (49,102) (3,393) 2,600 903 7,500 Net increase (decrease) in fund balance (19,201) 9,860 3,036 (1,017) 11,283 6,463 Fund balance (deficit) - January 1 79,357 325,144 52,519 2,727 25,869 (6,463) $1,710 $37,152 $0 Fund balance - December 31 $60,156 $335,004 $55,555 76 77 Statement 11 � Recreation Project Housing Contributed Contributed Parking Confiscated Federal Totals Pride Mortgage Projects Projects Ramp Property Police Grant 1994 1993 $ _ $ _ $ _ $ _ $ - $ - $ - $390,348 $378,979 586,129 - 586,129 95,366 10,520 433,552 601,152 _ - - 99,249 117,374 174 7,126 - - 4,342 - - 29,815 64,905 - _ _ _ - 547 - 15,471 9,592 - - 55,647 16,344 - - - 72,525 101,496 174 7,126 55,647 16,344 590,471 547 10,520 1,627,089 1,368,864 _ _ _ _ _ _ _ - 532 - - 49,747 - - - - 49,747 43,462 300 - 17,963 - - - - 18,263 18,554 - - 2,610 - 2,610 -- - - - 21,274 379,299 351,820 = = 5,949 2,605 81,435 82,821 - - - 3,600 - 16 2,492 173,097 253,254 - - - - - 249 - 180,179 186,164 300 0 70,320 9,549 0 265 26,371 884,630 936,607 (126) 7,126 (14,673) 6,795 590,471 282 (15,851) 742,459 432,257 - - - - 135,623 153,223 31,757 _ = (300,000) (475,611) (113,624) 0 0 0 0 (300,000) 0 135,623 (322,388) (81,867) (126) 7,126 (14,673) 6,795 290,471 282 119,772 420,071 350,390 3,428 459,135 19,287 17,804 312,661 2,340 - 1,293,808 943,418 t$3,302 $466,261 $4,614 $24,599 $603,132 $2,622 $119,772 $1,713,879 $1,293,808 77 Fund balance (deficit) - January 1 Fund balance - December 31 79,357 $60,156 (62,902) $79,357 CITY OF COLUMBIA HEIGHTS, MINNESOTA n y SPECIAL REVENUE FUND - MUNICIPAL STATE AID STREET FUND tiv Statement 12 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1994 With Comparative Actual Amounts For The Year Ended December 31, 1993 1994 Over Budget Actual (under) Budget 1993 Actual Revenues: Intergovernmental: State of Minnesota: Maintenance $115,000 $146,409 $31,409 $143,466 Construction 276,050 201,400 (74,650) 281,144 Other revenues: Miscellaneous - 9,288 9,288 - Total revenues 391,050 357,097 (33,953) 424,610 Expenditures: Maintenance: Personal services 10,800 6,787 (4,013) 9,600 Supplies 2,000 273 (1,727) 834 , Other services and charges 23,067 19,290 (3,777) 21,385 Capital outlay 21,000 - (21,000) 350 Construction: Personal services - 44,432 44,432 25,899 Supplies - 209 209 8 Other services and charges 1,050 12,519 11,469 669 Capital outlay 275,000 176,269 (98,731) 174,916 Total expenditures 332,917 259,779 (73,138) 233,661 Revenues over expenditures 58,133 97,318 39,185 190,949 Other financing sources (uses): Operating transfers (out): Maintenance Construction - - (93,369) (23,150) (93,369) (23,150) (48,690) - Total other financing sources (uses) 0 (116,519) (116,519) (48,690) Net increase (decrease) in fund balance $58,133 (19,201) ($77,334) 142,259 Fund balance (deficit) - January 1 Fund balance - December 31 79,357 $60,156 (62,902) $79,357 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, 1994 With Comparative Actual Amounts For The Year Faded December 31, 1993 ' 79 1994 Over (under) 1 1993 Budget A Actual B Budget A Actual Revenues: Franchise fees $ $72,000 $ $71,756 ( ($244) $ $73,154 Interest 1 10,000 1 15,901 5 5,901 2 22,867 Other revenues: Miscellaneous 3 3,500 5 5,291 1 1,791 3 3,909 Total revenues 8 85,500 9 92,948 7 7,448 9 99,930 Expenditures: Personal services 9 975 8 845 ( (130) 9 908 Supplies 2 2,857 8 896 ( (1,961) 1 1,335 Other services and charges 6 69,883 3 32,245 ( (37,638) 1 15,471 Capital outlay 6 60,720 - - ( (60,720) 1 1,815 Total expenditures 1 134,435 3 33,986 ( (100,449) 1 19,529 Revenues over (under) expenditures ( (48,935) 5 58,962 1 107,897 8 80,401 Other financing sources (uses): Operating transfers (out) ( (47,769) ( (49,102) ( (1,333) ( (45,928) Net increase (decrease) in fund balance ( ($96,704) 9 9,860 $ $106,564 3 34,473 Fund balance - January 1 3 325,144 2 290,671 Fund balance - December 31 $ $335,004 $ $325,144 79 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - PARATRANSIT FUND Statement 14 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1994 With Comparative Actual Amounts For The Year Ended December 31, 1993 Revenues: Intergovernmental Paratransit fees Interest Other revenues: Miscellaneous Total revenues Expenditures: Supplies Other services and charges Total expenditures Revenues 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 - January 1 Fund balance - December 31 80 52,519 $55,555 38,784 $52,519 1994 Over (under) 1993 Budget Actual Budget Actual $138,000 $42,573 ($95,427) $136,542 22,000 11,695 (10,305) 20,537 - 2,272 2,272 5,217 - 20 20 3,250 160,000 56,560 (103,440) 165,546 1,410 456 (954) 589 168,617 49,675 (118,942) 155,005 170,027 50,131 (119,896) 155,594 (10,027) 6,429 16,456 9,952 - - - 10,000 (7,944) (3,393) 4,551 (6,217) (7,944) (3,393) 4,551 3,783 ($17,971) 3,036 $21,007 13,735 52,519 $55,555 38,784 $52,519 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, 1994 With Comparative Actual Amounts For The Year Ended December 31, 1993 Revenues: Interest Other revenues: r Miscellaneous Contributions Total revenues Ir Expenditures: Personal services Supplies Other services and charges Total expenditures IRevenues over (under) expenditures Other financing sources: Operating transfers in Total other financing sources INet increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 r 2,727 $1,710 3,041 $2,727 1994 Over (under) 1993 Budget Actual Budget Actual $ - $2,650 $2,650 $ - 270 270 30 2,400 534 (1,866) 1,663 2,400 3,454 1,054 1,693 - 1,896 1,896 - 3,310 3,505 195 3,771 1,655 1,670 15 736 4,965 7,071 2,106 4,507 (2,565) (3,617) (1,052) (2,814) 2,600 2,600 - 2,500 2,600 2,600 0 2,500 $35 (1,017) ($1,052) (314) 2,727 $1,710 3,041 $2,727 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - LIBRARY FUND Statement 16 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1994 With Comparative Actual Amounts For The Year Ended December 31, 1993 Revenues: Taxes Charges for services Other revenues: Miscellaneous Total revenues Expenditures: Personal services Supplies Other services and charges Capital outlay Total expenditures Revenues 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 - January 1 Fund balance - December 31 E:� 1994 Over (under) 1993 Budget Actual Budget Actual $390,348 $390,348 $ - $378,979 18,495 15,798 (2,697) 17,017 - 55 55 63 278,621 273,028 68,670 67,542 60,027 51,590 11,813 3,661 419,131 395,821 (10,288) 10,380 7,500 7,500 (6,467) (6,597) 1,033 903 ($9,255) 11,283 25,869 $37,152 (5,593) 260,323 (1,128) 63,771 (8,437) 50,531 (8,152) 1,866 (23,310) 376,491 20,668 19,568 - 12,590 (130) (6,289) (130) 6,301 $20,538 25,869 $25,869 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - COMMUNITY POLICE Statement 17 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1994 With Comparative Actual Amounts For The Year Ended December 31, 1993 Revenues: Intergovernmental Fees/program revenues Total revenues Expenditures: Personal services Revenues over (under) expenditures Other financing sources: Operating transfers in Net increase (decrease) in fund balance Fund balance (deficit) - January 1 Fund balance (deficit) - December 31 1994 Over 31,037 (16,990) (Under) 1993 Budget Actual Budget Actual $31,667 $30,000 ($1,667) $40,000 - - - 6,666 31,667 30,000 (1,667) 46,666 48,027 31,037 (16,990) 55,090 (16,360) (1,037) 15,323 (8,424) 7,500 7,500 - 6,667 ($8,860) 6,463 $15,323 (1,757) (6,463) (4,706) $0 ($6,463) CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - PROJECT PRIDE Statement 18 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1994 With Comparative Actual Amounts For The Year Ended December 31, 1993 Revenues: Fees/program revenues Interest Other revenues: Contributions Total revenues Expenditures: Personal services Supplies Other services and charges Total expenditures Net increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 J ., 3,428 $3,302 4,089 $3,428 1994 Over (Under) 1993 Budget Actual Budget Actual $200 $ - ($200) $ - 250 174 (76) - 5,300 - (5,300) 333 5,750 174 (5,576) 333 547 - (547) 532 - - - 290 412 300 (112) 172 959 300 (659) 994 $4,791 (126) ($4,917) (661) 3,428 $3,302 4,089 $3,428 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - HOUSING MORTGAGE Statement 19 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE 'For The Year Ended December 31, 1994 With Comparative Amounts For The Year Ended December 31, 1993 1994 1993 Revenues: Interest $7,126 $13,346 Other revenues: Miscellaneous - - Total revenues 7,126 13,346 Expenditures - - tRevenues over expenditures 7,126 13,346 Fund balance - January 1 459,135 445,789 Fund balance - December 31 $466,261 $459,135 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - RECREATION CONTRIBUTED PROJECTS Statement 20 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1994 With Comparative Amounts For The Year Ended December 31, 1993 Revenues: Contributions Expenditures: Supplies Other services and charges Capital outlay Total expenditures Revenues over (under) expenditures Fund balance - January 1 Fund balance - December 31 �. • 1994 1993 $55,647 $60,790 49,747 43,172 17,963 18,382 2,610 - 70,320 61,554 (14,673) (764) 19,287 20,051 $4,614 $19,287 CITY OF COLUMBIA HEIGHTS, MINNESOTA Q SPECIAL REVENUE FUND - CONTRIBUTED PROJECTS U Statement 21 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1994 With Comparative Amounts For The Year Ended December 31, 1993 1994 1993 Revenues: Contributions $16,344 $38,710 Expenditures: Supplies 5,949 12,513 Other services and charges 3,600 9,457 Capital outlay - 7,217 Total expenditures 9,549 29,187 Revenues over expenditures 6,795 9,523 rOther financing sources (uses): Operating transfers (out) - (6,500) ' Net increase in fund balance 6,795 3,023 Fund balance - January 1 17,804 14,781 Fund balance - December 31 $24,599 $17,804 ' 87 CITY OF COLUMBIA HEIGHTS, MINNESOTA }J� SPECIAL REVENUE FUND - PARKING RAMP j Statement 22 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1994 With Comparative Amounts For The Year Ended December 31, 1993 Revenues: Special assessments Interest Total revenues Expenditures Revenues over expenditures Other financing source (uses): Operating transfers (out) Net increase in fund balance Fund balance - January 1 Fund balance - December 31 88 $586,129 4,342 590,471 590,471 (300,000) 290,471 312,661 $603,132 1993 $95,366 23,475 118,841 118,841 ' 118,841 193,820 $312,661 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - CONFISCATED PROPERTY Statement 23 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1994 With Comparative Amounts For The Year Ended December 31, 1993 1994 1993 Revenues: Confiscated property $547 $2,340 Expenditures: Other services and charges 16 - Capital outlay 249 Total expenditures 265 0 ' Revenues over expenditures 282 2,340 Fund balance - January 1 2,340 - Fund balance - December 31 $2,622 $2,340 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - FEDERAL POLICE GRANT Statement 24 STATEMENT OF REVENUES, EXPENDITURES AND i CHANGES IN FUND BALANCE For The Year Ended December 31, 1994 Revenues: Federal grant Expenditures: Personal services Supplies Other services and charges Total expenditures Revenues over (under) expenditures Other financing sources: Operating transfers in Net increase in fund balance Fund balance - January 1 Fund balance - December 31 001 1994 $10,520 21,274 2,605 2,492 26,371 (15,851) 135,623 119,772 $119,772 t 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. Tax Increment Bonds Funds - a separate fund is used to account for each separate Tax Increment Bond Issue revenues and expenditures. 91 CH 92 CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA SERVICE FUNDS Statement 25 'DEBT COMBINING BALANCE SHEET December 31, 1994 With Comparative Totals For December 31, 1993 Tax Tax Tax Increment Capital Increment Increment Tax Refunding Appreciation Refunding Refunding Increment Bonds Bonds Bonds Bonds Totals Bonds of 1987 of 1990 of 1991 of 1993 1994 1993 Assets Cash and investments $2,032,664 $ - $ - $ - $ - $2,032,664 $1,391,060 Cash and investments held in escrow - - - - - - 6,518,487 Taxes: Unremitted - - - - - - 8,398 Delinquent 316,901 316,901 746,445 Interest 9,228 - - - - 9,228 4,142 Total assets $2,358,793 $0 $0 $0 $0 $2,358,793 $8,668,532 Liabilities and Fund Balance Liabilities: Due to other governmental units $15,989 $ - $ - $ - $ - $15,989 $ - Due to other funds 854,379 - - - - 854,379 - Deferred revenue: Property taxes - delinquent I 316,901 - - - 316,901 746,445 Total liabilities 1,187,269 0 0 0 0 1,187269 746,445 Fund balance: Unreserved: Designated for debt service 1,171,524 - - - - 1,171,524 7,922,087 Total liabilities and fund balance $2,358,793 $0 $0 $0 $0 $2,358,793 $8,668,532 M CITY OF COLUMBIA HEIGHTS, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1994 With Comparative Totals For The Year Ended December 31, 1993 Expenditures: Debt service: Principal retirement Interest and fiscal charges Miscellaneous Total expenditures Revenues over (under) expenditures Other financing sources (uses): Bond proceeds Payment of refunded bonds Operating transfers in Operating transfers (out) Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance - January 1 Residual equity transfers Fund balance - December 31 •, 23,076 23,076 1,254,812 160,000 7,880 (167,880) 167,880 (1,484,684) - (1,484,684) 167,880 (229,872) 0 1,401,396 - $1,171,524 $0 3�j Tax Tax Increment Increment Bonds Bonds of 1984 Revenues: Tax increments $1,116,034 $ - Special assessments - - Interest 57,243 - Other revenues 104,611 - Total revenues 1,277,888 0 Expenditures: Debt service: Principal retirement Interest and fiscal charges Miscellaneous Total expenditures Revenues over (under) expenditures Other financing sources (uses): Bond proceeds Payment of refunded bonds Operating transfers in Operating transfers (out) Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance - January 1 Residual equity transfers Fund balance - December 31 •, 23,076 23,076 1,254,812 160,000 7,880 (167,880) 167,880 (1,484,684) - (1,484,684) 167,880 (229,872) 0 1,401,396 - $1,171,524 $0 a Statement 26 Tax Capital Tax Tax Increment Appreciation Increment Increment Refunding Bonds Refunding Refunding Totals Bonds of 1987 of 1990 Bonds of 1991 Bonds of 1993 1994 1993 $ - $ - $ - $ - $1,116,034 $1,153,910 - - - 35,088 _ = 175,345 232,588 421,285 - - - - 104,611 5,248 0 0 175,345 0 1,453,233 1,615,531 695,000 - - 160,000 1,015,00 1,875,000 255,218 360 353,602 33,660 650,720 1,043,718 - - - - 23,076 44,975 950,218 360 353,602 193,660 1,688,796 2,963,693 (950,218) (360) (178,257) (193,660) (235,563) (1,348,162) - - - - - 730,073 1 (6,515,000) - - - (6,515,000) (710,000) 7,465,218 360 174,770 191,456 7,999,684 - 2,297,610 - - (6,515,000) - (7,999,684) (2,297,610) 950,218 360 (6,340,230) 191,456 (6,515,000) 20,073 0 0 (6,518,487) (2,204) (6,750,563) (1,328,089) - - 6,518,487 2,204 7,922,087 8,905,141 - - - - - 345,035 $0 $0 $0 $0 $1,171,524 $7,922,087 a CH we CITY OF COLUMBIA HEIGHTS, MINNESOTA c(-el`/ 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. 1 Capital 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 revenues and expenditures associated with storm sewers and other surface water management. Downtown Parking Maintenance Fund 405 - used for maintenance of the West Side Parking. Capital Improvement Fund 408 - used for projects involving State Aid streets. Sheffield Redevelopment Fund 410 - used to fund redevelopment of the area of the City identified as Sheffield Neighborhood. Capital Improvement General Government Buildings Fund 411 - 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. 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. 97 CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1994 With Comparative Totals For December 31, 1993 Assets Cash and investments Receivables: Accounts Special assessments: Unremitted Delinquent Deferred Interest Loans Due from other governmental units Due from component unit Prepayments Real estate held for resale Total assets Liabilities and Fund Balance Liabilities: Accounts payable Accrued salaries and withholdings payable Contracts payable - retained percentage Notes payable Due to other governmental units Due to other funds Deferred revenue Deposits Total liabilities Fund balance: Reserved for prepayments Reserved for real estate held for resale Unreserved: Designated for subsequent years' expenditures Undesignated Total fund balance (deficit) Total liabilities and fund balance •• Water Downtown Capital Surface Parking Capital Improvement Management Maintenance Improvement $ - $20,130 $56,661 $19,876 524 - 10,421 - - - $10,421 $20,130 $57,185 $19,876 $1,042 $ - $1,300 $ - 73 - 16 - 1,231 - - - 79,609 - - - 81,955 0 1,316 I (71,534) 20,130 55,869 19,876 (71,534) 20,130 55,869 19,876 $10,421 $20,130 $57,185 $19,876 Statement 27 .. Capital ' Improvement General Capital Capital Capital Sheffield Government Improvement Improvement Infrastructure Equipment Redevelopment Buildings Parks Projects Replacement Replacement Totals Fund 410 Fund 411 Fund 412 Fund 415 Fund 430 Fund 431 1994 1993 $47,563 $323,125 $317,524 $109,152 $540,982 $3,170,465 $4,605,478 $4,400,390 2,388 157 - - - - 2,545 - - - - 1,348 - - 1,348 2,786 - - 60,229 - - 60,229 59,185 = 304,970 304,970 364,055 - 2,543 2,950 864 2,859 24,970 34,710 20,593 10,530 - - - - - 10,530 - 13,611 13,611 4,622 - - - - - - 10,421 - 2,300 2,300 - 1 449,000 - - - - - 449,000 220,000 $511,781 $325,825 $320,474 $490,174 $543,841 $3,195,435 $5,495,142 $5,071,631 $701 $6,075 $326 $538 $ - $ - $9,982 $2,168 7 - 36 2,007 - - 2,139 105 540 1,771 1,580 72,000 - - - - - 72,000 - 1,211 - - - 1,211 - 1,022,031 = _ 1,101,640 844,812 - - - 365,199 - - 365,199 423,241 119 - - - - - 119 - ' 1,096,069 6,075 902. 367,744 0 0 1,554,061 1,271,906 2,300 - - - - - 2,300 - 449,000 - - - - - 449,000 - - 1,999 326 - - 113,909 116,234 4,550 (1,035,588) 317,751 319,246 122,430 543,841 3,081,526 3,373,547 3,795,175 (584,288) 319,750 319,572 122,430 543,841 3,195,435 3,941,081 3,799,725 ' $511,781 $325,825 $320,474 $490,174 $543,841 $3,195,435 $5,495,142 $5,071,631 .. CITY OF COLUMBIA HEIGHTS, MINNESOTA ' CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES ' IN FUND BALANCE For The Year Ended December 31, 1994 With Comparative Totals For The Year Ended December 31, 1993 , Revenues: Special assessments Interest Other revenues: Miscellaneous Contributions Proceeds from sale of land Other refunds 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 Residual equity transfers Fund balance (deficit) - December 31 100 3,248 182,765 - - Water Downtown Capital Surface Parking Improvement Management Maintenance Fund 401 Fund 403 Fund 405 _ 3,248 182,765 - - 162,171 - 14,983 , Capital 20,594 Improvement (11,735) Fund 408 , _ w 0 162,171 - 14,983 20,594 0 (11,735) 0 46,914 46,914 0 0 0 , 67,508 0 (11,735) 0 (139,042) 20,130 67,604 19,876 ($71,534) $20,130 $55,869 $19,876 Statement 28 . Capital Improvement Capital Capital Capital Sheffield Government Improvement Improvement Infrastructure Equipment Redevelopment Buildings Parks Projects Replacement Replacement Totals Fund 410 Fund 411 Fund 412 Fund 415 Fund 430 Fund 431 1994 1993 $ - $ - $ - $303,233 $ - $ - $303,233 $222,027 15,772 18,298 5,358 17,737 154,890 215,303 350,565 89,044 - - 42,577 - - 314,386 8,041 ' 120,000 120,000 79,715 - - - - - 79,715 - - - - 6,041 - - 6,041 - ' 288,759 15,772 18,298 357,209 17,737 154,890 1,038,678 580,633 ' 787,646 28,066 84,116 342,137 - 130,108 1,549,227 953,628 (498,887) (12,294) (65,818) 15,072 17,737 24,782 (510,549) (372,995) 300,000 25,000 - 200,000 140,000 711,914 174,146 1 = (60,009) (60,009) (69,530) 300,000 25,000 0 (60,009)_ 200,000 140,000 651,905 104,616 (198,887) 12,706 (65,818) (44,937) 217,737 164,782 141,356 (268,379) (385,401) 307,044 385,390 167,367 326,104 3,030,653 3,799,725 4,499,737 _ _ _ - - - (431,633) ' ($584,288) $319,750 $319,572 $122,430 $543,841 $3,195,435 $3,941,081 $3,799,725 101 CH 102 CITY OF COLUMBIA HEIGHTS, 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. Revenues in the Enterprise Funds are recognized when they are 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 revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Water Utility Fund - used to account for revenues and expenses associated with services to area residents. Sewer Utility Fund - used to account for revenues and expenses associated with 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 three off -sale liquor stores. 103 Fixed assets: Land 45,223 36,586 - 13,051 94,860 94,860 CITY OF COLUMBIA HEIGHTS, MINNESOTA 233,836 46,290 - 245,016 525,142 521,192 ENTERPRISE FUNDS Improvements other than buildings 2,865,332 3,100,742 2,890 104,538 Statement 29 6,007,098 COMBINING BALANCE SHEET Machinery and equipment 288,940 473,268 5,607 356,168 , December 31, 1994 Construction in process - 213,852 - - With Comparative Totals For December 31, 1993 235,462 Total 3,433,331 3,870,738 8,497 , 8,031,339 7,961,373 Less: Accumulated depreciation 1,729,519 2,066,767 4,319 373,998 4,174,603 3,947,097 ' Net fixed assets 1,703,812 Totals 4,178 Assets Water Sewer Refuse Liquor 1994 1993 $915,535 Current assets: $9,920,772 $9,692,398 Liabilities and Fund Equity Cash and cash equivalents $954,377 $1,319,796 $607,000 $5239766 $3,404,939 $3,269,901 Receivables: ' Accounts payable $2,920 Accounts 251,913 233,333 276,229 2,221 763,696 811,471 ' Interest 7,207 10,980 4,722 4,821 27,730 17,920 and withholdings payable Due from other governmental 15,358 - 44,389 79,277 61,779 units, current portion - 34,389 239406 2,326 60,121 172,242 , Due from other funds - 853,031 - 169,000 1,022,031 707,000 66,116 Prepayments 279 57,617 - 135 58,031 185 477,198 Inventory, at cost 1,650 - - 607,848 609,498 579,495 ' Total current assets 1,215,426 - 2,5099146 911,357 1,310,117 5,946,046 5,558,214 Long -term assets: Contributed capital: Due from other governmental units, Property owners /customers 351,219 629,202 - - 980,421 , net of current portion - 117,990 - - 117,990 119,908 453,000 Total long -term assets 0 117,990 0 0 117,990 119,908 0 Fixed assets: Land 45,223 36,586 - 13,051 94,860 94,860 Buildings 233,836 46,290 - 245,016 525,142 521,192 Improvements other than buildings 2,865,332 3,100,742 2,890 104,538 6,073,502 6,007,098 Machinery and equipment 288,940 473,268 5,607 356,168 1,123,983 1,102,761 Construction in process - 213,852 - - 213,852 235,462 Total 3,433,331 3,870,738 8,497 718,773 8,031,339 7,961,373 Less: Accumulated depreciation 1,729,519 2,066,767 4,319 373,998 4,174,603 3,947,097 ' Net fixed assets 1,703,812 1,803,971 4,178 344,775 3,856,736 4,014,276 Total assets $2,919,238 $4,4311107 $915,535 $1,654,892 $9,920,772 $9,692,398 Liabilities and Fund Equity Current liabilities: ' Accounts payable $2,920 $12,714 $669 $310,282 $326,585 $268,162 Accrued salaries and withholdings payable 19,530 15,358 - 44,389 79,277 61,779 Contracts payable - retained percentage - 5,577 - - 5,577 81,141 , Due to other governmental units 52,373 52,749 - 58,809 163,931 66,116 Total current liabilities 74,823 86,398 669 413,480 575,370 477,198 ' Fund equity: Contributed capital: Property owners /customers 351,219 629,202 - - 980,421 1,045,650 Federal funds 453,000 - - - 453,000 453,000 , Total contributed capital 804,219 629,202 0 0 1,433,421 1,498,650 Retained earnings: Reserved for capital ' replacement/construction 495,745 2,241,058 - - 2,736,803 2,656,650 Unreserved 1,544,451 1,474,449 914,866 1,241,412 5,175,178 5,059,900 Total retained earnings 2,040,196 3,715,507 914,866 1,241,412 7,911,981 7,716,550 Total fund equity 2,844,415 4,344,709 914,866 1,241,412 9,345,402 9,215,200 ' Total liabilities and fund equity $2,919,238 $4,431,107 $915,535 $1,654,892 $9,920,772 $9,692,398 104 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, 1994 ' With Comparative Totals For The Year Ended December 31, 1993 Operating revenues: Charges for services: Customer service Penalties Sewer service charges Refuse service charges Charges for sales: Water Meter Liquor Beer Wine Other Total operating revenues Operating expenses: Cost of sales and services Distribution Administration Collection and disposal Recycling Hazardous waste Cost of goods sold Operating expense Depreciation Total operating expenses Net income (loss) from operations Nonoperating revenues (expenses): Interest income Intergovernmental Miscellaneous revenues Miscellaneous expenses Total nonoperating revenues (expenses) Net income before operating transfers Operating transfers: Operating transfers in Operating transfers (out) Total operating transfers Net income (loss) Credit for depreciation on contributed assets Retained earnings - January 1 as previously reported Prior period adjustment Retained earnings - January 1 as restated Retained earnings - December 31 Totals Water Sewer Refuse Liquor 1994 1993 $23,321 $ $ - $ - $23,321 $19,481 29,055 - - - 29,055 36,334 - 982,985 - - 982,985 1,021,710 - - 1,323,832 - 1,323,832 1,515,776 1,079,641 - - - 1,079,641 1,067,666 2,739 - - - 2,739 3,052 - - - 1,607,461 1,607,461 1,496,510 - - - 2,705,284 2,705,284 2,537,881 - - - 493,997 493,997 472,576 - - - 710,515 710,515 697,437 1,134,756 982,985 1,323,832 5,517,257 8,958,830 8,868,423 569,049 724,093 - - 1,293,142 1,338,968 298,147 236,126 - - 534,273 553,875 8,451 8,348 14,316 - 31,115 25,162 - - 858,789 - 858,789 1,053,090 76,276 - 263,752 - 263,752 252,598 - 2,759 - 2,759 1,577 259,470 - - 4,475,098 4,475,098 4,273,140 - - - 733,126 733,126 684,368 83,930 107,500 1,022 55,298 247,750 259,667 959,577 1,076,067 1,140,638 5,263,522 8,439,804 8,442,445 175,179 (93,082) 183,194 253,735 519,026 425,978 44,704 107,554 29,293 29,905 211,456 311,094 - - 46,983 - 46,983 40,992 77 160 - 6,844 7,081 15,175 (12,499) (11,136) - (3,175) (26,810) (15,201) 32,282 96,578 76,276 33,574 238,710 352,060 207,461 3,496 259,470 287,309 757,736 778,038 65,307 84,314 - - 149,621 90,662 (129,250) (148,258) (97,813) (401,834) (777,155) (582,028) (63,943) (63,944) (97,813) (401,834) (627,534) (491,366) 143,518 (60,448) 161,657 (114,525) 130,202 286,672 26,294 38,935 - - 65,229 65,229 1,870,384 3,737,020 753,209 1,355,937 7,716,550 7,226,387 - _ _ - - 138,262 1,870,384 3,737,020 753,209 1,355,937 7,716,550 7,364,649 $2,040,196 $3,715,507 $914,866 $1,241,412 $7,911,981 $7,716,550 105 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 1994 With Comparative Totals For the Year Ended December 31, 1993 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 Statement 31 ' Page 1 of 2 Totals Water Sewer Refuse Liquor 1994 1993 $1,122,585 $994,274 $1,377,079 $5,345,706 $8,839,644 $8,061,361 (709,646) (914,780) (1,136,967) (4,693,059) (7,454,452) (7,421,975) (173,861) (117,640) (2,006) (433,772) (727,279) (724,580) 77 160 47,631 6,844 54,712 15,175 (12,499) (11,136) - (3,175) (26,810) (15,201) 226,656 (49,122) 285,737 222,544 685,815 (85,220) Cash flows from noncapital financing activities: Operating transfers in from other funds 65,307 84,314 - - 149,621 90,662 Operating transfers (out) to other funds (129,250) (148,258) (97,813) (401,834) (777,155) (582,028) Net cash flows from noncapital financing activities (63,943) (63,944) (97,813) (401,834) (627,534) (491,366) Cash flows from capital and related financing activities: Acquisition of fixed assets Cash flows from investing activities: 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 31 106 (23,245) (57,219) (808) (9,586) (90,858) (428,473) - - - - - 3,080,024 41,415 71,685 26,315 28,200 167,615 311,094 41,415 71,685 26,315 28,200 167,615 3,391,118 180,883 (98,600) 213,431 (160,676) 135,038 2,386,059 773,494 1,418,396 393,569 684,442 3,269,901 883,842 $954,377 $1,319,796 $607,000 $523,766 $3,404,939 $3,269,901 CITY OF COLUMBIA HEIGHTS, MINNESOTA 'ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 1994 With Comparative Totals For the Year Ended December 31, 1993 Statement 31 Page 2 of 2 107 Totals ' Water Sewer Refuse Liquor 1994 1993 Reconciliation of operating income (loss) to ' Net cash flows from operating activities ' Operating income (loss) $175,179 ($93,082) $183,194 $253,735 $519,026 $466,970 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues 77 160 47,631 6,844 54,712 15,175 Miscellaneous expenses (12,499) (11,136) (3,175) (26,810) (15,201) Depreciation expense 83,930 107,500 1,022 55,298 247,750 259,667 Changes in assets and liabilities: (Increase) decrease in accounts receivable (12,171) 5,658 56,381 (2,093) 47,775 (17,901) (Increase) decrease in due from other governmental units 117,631 (3,134) (458) 114,039 (123,153) (Increase) decrease in due from other funds - (112,000) - (169,000) (281,000) (707,000) (Increase) decrease in prepayments (259) (57,617) 40 (10) (57,846) 55,725 (Increase) decrease in inventory, at cost 828 (30,831) (30,003) (172,730) Increase (decrease) in accounts payable (60,754) (63,258) 662 106,209 (17,141) 145,520 Increase(decrease)in accrued - salaries and withholdings payable 6,663 4,273 (59) 6,621 17,498 (3,817) Increase (decrease) in due to other governmental units 45,662 52,749 - (596) 97,815 11,525 Total adjustments 51,477 43,960 102,543 (31,191) 166,789 (552,190) Net cash flows from operating activities $226,656 ($49,122) $285,737 $222,544 $685,815 ($85,220) 107 CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UTILITY FUND BALANCE SHEET December 31, 1994 With Comparative Totals For December 31, 1993 Ll Statement 32 ' Capital Equipment Capital Operating Replacement Construction Totals Account Account Account 1994 1993 Assets Current assets: Cash and cash equivalents Receivables: Accounts Interest Prepayments 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: $460,316 $161,654 $332,407 $954,377 $773,494 251,913 - - 251,913 239,742 3,357 1,178 2,672 7,207 3,918 279 - - 279 20 1,650 - - 1,650 2,478 717,515 162,832 335,079 1,215,426 1,019,652 2,348,670 160,666 335,079 45,223 - - 45,223 45,223 233,836 - - 233,836 233,836 2,865,332 - - 2,865,332 2,839,427 288,940 - - 288,940 269,867 - - - - 21,733 3,433,331 0 0 3,433,331 3,410,086 1,729,519 - - 1,729,519 1,645,589 1,703,812 0 0 1,703,812 1,764,497 $2,421,327 $162,832 $335,079 $2,919,238 $2,784,149 Accounts payable $754 $2,166 $ - $2,920 $63,674 Accrued salaries and withholdings payable 19,530 - - 19,530 12,867 Due to other governmental units 52,373 - - 52,373 6,711 Total liabilities 72,657 2,166 0 74,823 83,252 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 �J 351,219 - - 351,219 377,513 453,000 - - 453,000 453,000 804,219 0 0 804,219 830,513 - 160,666 335,079 495,745 491,767 1,544,451 - - 1,544,451 ' 1,378,617 1,544,451 160,666 335,079 2,040,196 1,870,384 2,348,670 160,666 335,079 2,844,415 2,700,897 ' $2,421,327 $162,832 $335,079 $2,919,238 $2,784,149 108 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UTILITY FUND Statement 33 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1994 With Comparative Totals For The Year Ended December 31, 1993 Capital Equipment Capital Operating Replacement Construction Totals Account Account Account 1994 1993 Operating revenues: 7,304 16,575 207,461 114,095 ' Charges for services: 42,604 22,703 Customer services $23,321 $ - $ - $23,321 $19,481 Penalties 29,055 - - 29,055 36,334 ' Charges for sales: 139,540 Water sales 1,079,641 - - 1,079,641 1,067,666 Meter sales 2,739 - - 2,739 3,052 ' Total operating revenues 1,134,756 0 0 1,134,756 1,126,533 Operating expenses: $335,079 $1,870,384 Cost of sales and services 569,049 - - 569,049 640,691 Distribution 298,147 - - 298,147 342,336 Administration 8,451 - - 8,451 8,638 Depreciation 83,930 - - 83,930 87,522 Total operating expenses 959,577 0 0 959,577 1,079,187 ' Net income from operations 175,179 0 0 175,179 47,346 Nonoperating revenues (expenses): Interest income 20,825 7,304 16,575 44,704 66,687 Miscellaneous revenues 77 77 62 Miscellaneous expenses (12,499) - - (12,499) - ' Total nonoperating revenues (expenses) 8,403 7,304 16,575 32,282 66,749 Net income before operating transfers Operating transfers: Operating transfers in ' Operating transfers (out) Total operating transfers ' Net income (loss) Credit for depreciation on contributed assets IRetained earnings - January 1 Retained earnings - December 31 183,582 7,304 16,575 207,461 114,095 42,604 22,703 - 65,307 23,437 (86,646) (11,622) (30,982) (129,250) _ (184,699) (44,042) 11,081 (30,982) (63,943) (161,262) 139,540 18,385 (14,407) 143,518 (47,167) 26,294 - - 26,294 26,294 1,378,617 142,281 349,486 1,870,384 1,891,257 $1,544,451 $160,666 $335,079 $2,040,196 $1,870,384 011A CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UTILITY FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1994 With Comparative Amounts For the Year Ended December 31, 1993 Statement 34 , 1994 1993 Cash flows from operating activities: Cash received from customers $1,122,585 $1,136,063 Cash paid to suppliers for goods and services (709,646) (775,460) Cash payments to employees for services (173,861) (209,749) Miscellaneous revenues 77 62 Miscellaneous expenses (12,499) - Net cash flows from operating activities 226,656 150,916 Cash flows from noncapital financing activities: Operating transfers in 65,307 23,437 Operating transfers (out) (129,250) (184,699) Net cash flows from noncapital financing activities (63,943) (161,262) Cash flows from capital and related financing activities: Acquisition of fixed assets (23,245) (24,682) Cash flows from investing activities: Proceeds from sale and maturity of investments - 708,166 Interest received on investments 41,415 66,687 Net cash flows from investing activities 41,415 774,853 Net increase in cash and cash equivalents 180,883 739,825 Cash and cash equivalents - January 1 773,494 33,669 Cash and cash equivalents - December 31 $954,377 $773,494 Reconciliation of operating income to Net cash flows from operating activities Operating income $175,179 $47,346 Adjustments to reconcile operating income to net cash flows from operating activities: Miscellaneous revenues 77 62 Miscellaneous expenses (12,499) - Depreciation expense 83,930 87,522 Changes in assets and liabilities: (Increase) decrease in accounts receivable (12,171) 9,530 (Increase) decrease in prepayments (259) (20) (Increase) decrease in inventory, at cost 828 18 Increase (decrease) in accounts payable (60,754) 11,314 Increase (decrease) in accrued salaries and withholdings payable 6,663 (4,485) Increase (decrease) in due to other governmental units 45,662 (371) Total adjustments 51,477 103,570 Net cash flows from operating activities $226,656 $150,916 110 CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND BALANCE SHEET December 31, 1994 With Comparative Totals For December 31, 1993 Statement 35 Capital Equipment Capital Operating Replacement Construction Totals Account Account Account 1994 1993 Assets Current assets: Cash and cash equivalents Receivables: Accounts Interest Due from other governmental units, current portion Due from other funds Prepayments 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 Contracts payable - retained percentage Due to other governmental units 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 $138,198 233,333 1,138 $203,031 $978,567 $1,319,796 $1,418,396 - - 233,333 238,991 1,435 8,407 10,980 9,142 34,389 - - 34,389 150,102 - - 853,031 853,031 707,000 57,617 - - 57,617 - 464,675 204,466 1,840,005 2,509,146 2,523,631 69,133 2,167 15,098 86,398 117,990 - - 117,990 119,908 668,137 - 202,299 2,038,759 36,586 - - 36,586 36,586 46,290 - - 46,290 46,290 3,100,742 - - 3,100,742 3,060,243 473,268 - - 473,268 478,479 - - 213,852 213,852 213,729 3,656,886 0 213,852 3,870,738 3,835,327 2,066,767 - - 2,066,767 1,981,075 1,590,119 0 213,852 1,803,971 1,854,252 $2,172,784 $204,466 $2,053,857 $4,431,107 $4,497,791 $1,046 $2,167 $9,501 $12,714 $408 15,338 - 20 15,358 11,085 - - 5,577 5,577 81,141 52,749 - - 52,749 - 69,133 2,167 15,098 86,398 92,634 629,202 - - 629,202 668,137 - 202,299 2,038,759 2,241,058 2,164,883 1,474,449 - - 1,474,449 1,572,137 1,474,449 202,299 2,038,759 3,715,507 3,737,020 2,103,651 202,299 2,038,759 4,344,709 4,405,157 $2,172,784 $204,466 $2,053,857 $4,431,107 $4,497,791 111 CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND Statement 36 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1994 With Comparative Totals For The Year Ended December 31, 1993 Capital Equipment Capital Operating Replacement Construction Totals Account Account Account 1994 1993 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) Interest income Miscellaneous revenues Miscellaneous expenses Total nonoperating revenues (expenses) 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 as previously reported Prior period adjustment Retained earnings - January 1 Retained earnings - December 31 112 $982,985 $ - $ - $982,985 $1,021,710 ' 724,093 - - 724,093 698,277 236,126 - - 236,126 211,539 ' 8,348 - - 8,348 8,266 107,500 - - 107,500 113,245 1,076,067 0 0 1,076,067 1,031,327 , (93,082) 0 0 (93,082) (9,617) ' 12,469 8,906 86,179 107,554 161,674 160 - - 160 6,700 ' (11,136) - - (11,136) (13,637) 1,493 8,906 86,179 96,578 154,737 , (91,589) 8,906 86,179 3,496 145,120 ' 51,612 32,702 - 84,314 62,994 (96,646) 12,213 (39,399) (148,258) (120,255) (45,034) 20,489 (39,399) (63,944) (57,261) ' (136,623) 29,395 46,780 (60,448) 87,859 38,935 38,935 38,935 ' - - 1,572,137 172,904 1,991,979 3,737,020 3,471,964 ' - - - - 138,262 1,572,137 172,904 1,991,979 3,737,020 3,610,226 $1,474,449 $202,299 $2,038,759 $3,715,507 $3,737,020 CITY OF COLUMBIA HEIGHTS, MINNESOTA 'SEWER UTILITY FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1994 ' With Comparative Amounts For the Year Ended December 31, 1993 ' 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 Operating transfers (out) Net cash flows from noncapital financing activities ' Cash flows from capital and related financing activities: Acquisition of fixed assets Cash flows from investing activities: Proceeds from sale and maturity of investments Interest received on investments Net cash flows 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 (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 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 due from other funds (Increase) decrease in prepayments ' Increase (decrease) in accounts payable Increase (decrease) in accrued salaries and withholdings payable Increase (decrease) in due to other governmental units ' Total adjustments Net cash flows from operating activities Statement 37 1994 1993 $994,274 $198,802 (914,780) (675,248) (117,640) (113,042) 160 6,700 (11,136) (13,637) (49,122) (596,425) 84,314 62,994 (148,258) (120,255) (63,944) (57,261) (57,219) (200,490) - 1,348,937 71,685 161,674 71,685 1,510,611 (98,600) 656,435 1,418,396 761,961 $1,319,796 $1,418,396 ($93,082) ($9,617) 160 (11,136) 107,500 5,658 117,631 (112,000) (57,617) (63,258) 4,273 52,749 43,960 ($49,122) 6,700 (13,637) 113,245 (414) (115,494) (707,000) 55,910 77,990 (4,108) ($596,425) 113 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND Statement 38 ' BALANCE SHEET December 31, 1994 With Comparative Amounts For December 31, 1993 ' Assets Current assets: Cash and cash equivalents Receivables: Accounts Interest Due from other governmental units Prepayments 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 114 1994 $607,000 276,229 4,722 23,406 911,357 2,890 5,607 8,497 4,319 4,178 $915,535 $669 .. ' 914,866 $915,535 1993 $393,569 , 332,610 1,744 20,272 , 40 748,235 ' 2,890 5,447 ' 8,337 3,297 5,040 ' $753,275 1 ' $7 59 66 ' 753,209 ' $753,275 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND Statement 39 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1994 ' With Comparative Amounts For The Year Ended December 31, 1993 Operating revenues: I Refuse service charges ' Operating expenses: Administration Collections and disposals ' Recycling Hazardous waste Depreciation Total operating expenses ' Net income from operations Nonoperating revenues: Interest income Intergovernmental Miscellaneous revenues Total nonoperating revenues Net income before operating transfers Operating transfers: ' Operating transfers (out) Net income ' Retained earnings - January 1 ' Retained earnings - December 31 1994 $1,323,832 $1,515,776 14,316 858,789 263,752 2,759 1,022 1,140,638 183,194 29,293 46,983 76,276 259,470 (97,813) 161,657 753,209 $914,866 8,258 1,053,090 252,598 1,577 1,022 1,316,545 199,231 29,681 40,992 6 70,679 269,910 (83,221) 186,689 566,520 $753,209 115 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND Statement 40 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1994 With Comparative Amounts For the Year Ended December 31, 1993 Cash flows from operating activities: Cash received from customers $1,377,079 $1,519,568 Cash paid to suppliers for goods and services (1,136,967) (1,314,292) Cash payments to employees for services (2,006) (1,272) Miscellaneous revenues 47,631 6 Net cash flows from operating activities 285,737 204,010 Cash flows from noncapital financing activities: Miscellaneous revenues Depreciation expense Operating transfers (out) (97,813) (83,221) Cash flows from capital and related financing activities: Acquisition of fixed assets (808) - Cash flows from investing activities: (Increase) decrease in due from other governmental units Proceeds from sale and maturity of investments - 230,235 Interest received on investments 26,315 29,681 Net cash flows from investing activities 26,315 259,916 Net increase in cash and cash equivalents 213,431 380,705 Cash and cash equivalents - January 1 393,569 12,864 Cash and cash equivalents - December 31 $607,000 $393,569 Reconciliation of operating income to Net cash flows from operating activities ' Operating income $183,194 $240,223 Adjustments to reconcile operating income to net ' cash flows from operating activities: Miscellaneous revenues Depreciation expense 47,631 1,022 6 1,022 , Changes in assets and liabilities: (Increase) decrease in accounts receivable 56,381 (29,844) (Increase) decrease in due from other governmental units (3,134) (7,356) (Increase) decrease in prepayments 40 (40) Increase (decrease) in accounts payable 662 (46) Increase (decrease) in accrued salaries and withholdings payable (59) 45 Total adjustments 102,543 (36,213) Net cash flows from operating activities $285,737 $204,010 ' 116 , CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND BALANCE SHEET December 31, 1994 With Comparative Amounts For December 31, 1993 Assets Current assets: Cash and cash equivalents Receivables: Accounts Interest Due from other governmental units Due from other funds Prepayments 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 Accrued salaries and withholdings payable Due to other governmental units Total liabilities Fund equity: Retained earnings: Unreserved 1994 $523,766 2,221 4,821 2,326 169,000 135 607,848 1,310,117 13,051 245,016 104,538 356,168 718,773 373,998 344,775 $1,654,892 $310,282 44,389 58,809 413,480 1,241,412 Statement 41 1993 $684,442 128 3,116 1,868 125 577,017 1,266,696 13,051 241,066 104,538 348,968 707,623 317,136 390,487 $1,657,183 $204,073 37,768 59,405 301,246 1,355,937 Total liabilities and fund equity $1,654,892 $1,657,183 11 -7 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND Statement 42 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1994 With Comparative Totals For The Year Ended December 31, 1993 118 Top Heights Totals Top Valu Valu II Liquor 1994 1993 Operating revenues: Charges for sales: , Liquor $958,987 $374,355 $274,119 $1,607,461 $1,496,510 Beer 1,483,713 590,045 631,526 2,705,284 2,537,881 Wine 309,146 131,315 53,536 493,997 472,576 Other 434,034 171,473 105,008 710,515 697,437 Total operating revenues 3,185,880 1,267,188 1,064,189 5,517257 5,204,404 Operating expenses: Cost of goods sold 2,622,069 1,037,299 815,730 4,475,098 4,273,140 Operating expense 389,033 209,149 134,944 733,126 684,368 Depreciation 28,428 14,838 12,032 55,298 57,878 Total operating expenses 3,039,530 1,261,286 962,706 5,263,522 5,015,386 $5,902 $101,483 253,735 189,018 Net income from operations $146,350 Nonoperating revenues (expenses) Interest income 29,905 53,052 Miscellaneous revenues 6,844 8,407 Miscellaneous expenses (3,175) (1,564) Total nonoperating revenues (expenses) 33,574 59,895 Net income before operating transfers 287,309 248,913 Operating transfers: Operating transfers in - 4,231 Operating transfers (out) (401,834) (193,853) Total operating transfers (401,834) (189,622) Net income (loss) (114,525) 59,291 Retained earnings - January 1 1,355,937 1,296,646 t $1,355,937 $1,241,412 Retained earnings - December 31 118 CITY OF COLUMBIA HEIGHTS MINNESOTA LIQUOR FUND Statement 43 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1994 With Comparative Amounts For the Year Ended December 31, 1993 1994 1993 Cash flows from operating activities: Cash received from customers $5,345,706 $5,206,928 Cash paid to suppliers for goods and services (4,693,059) (4,656,975) Cash payments to employees for services (433,772) (400,517) Miscellaneous revenues 6,844 8,407 Miscellaneous expenses (3,175) (1,564) Net cash flows from operating activities 222,544 156,279 Cash flows from noncapital financing activities: Operating transfers in - 4,231 Operating transfers (out) (401,834) (193,853) Net cash flows from noncapital financing activities (401,834) (189,622) Cash flows from capital and related financing activities: Acquisition of fixed assets (9,586) (203,301) Cash flows from investing activities: Proceeds from sale and maturity of investments - 792,686 Interest received on investments 28,200 53,052 Net cash flows from investing activities 28,200 845,738 Net increase (decrease) in cash and cash equivalents (160,676) 609,094 Cash and cash equivalents - January 1 684,442 75,348 Cash and cash equivalents - December 31 $523,766 $684,442 Reconciliation of operating income to Net cash flows from operating activities Operating income $253,735 $189,018 Adjustments to reconcile operating income to net cash flows from operating activities: Miscellaneous revenues 6,844 8,407 Miscellaneous expenses (3,175) (1,564) Depreciation expense 55,298 57,878 Changes in assets and liabilities: (Increase) decrease in accounts receivable (2,093) 2,827 (Increase) decrease in due from other governmental units (458) (303) (Increase) decrease in due from other funds (169,000) - (Increase) decrease in prepayments (10) (125) (Increase) decrease in inventory, at cost (30,831) (172,748) Increase (decrease) in accounts payable 106,209 56,262 Increase (decrease) in accrued salaries and withholdings payable 6,621 4,731 Increase (decrease) in due to other governmental units (596) 11,896 Total adjustments (31,191) (32,739) Net cash flows from operating activities $222,544 $156,279 119 CH 120 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS Internal Service Funds are used to account for the financing on a cost reimbursement basis of goods or services provided by one department or agency to other departments or agencies within the City. Central Garage Fund - used to account for the costs of operating a maintenance facility for automotive equipment used by other City departments. Such costs are billed to other departments at actual cost plus a fixed overhead factor. The automotive equipment itself is acquired by the various user departments which are responsible for financing replacement vehicles as necessary. Energy Management Fund - used to account for the costs associated with energy management and maintenance within the City. All costs are recorded in the fund and allocated to user departments. Data Processing Fund - used to account for management information system costs throughout the City. 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. 121 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1994 With Comparative Totals For December 31, 1993 Assets Current assets: Cash and cash equivalents Receivables: Accounts Interest Prepayments 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 Capital lease payable current Deferred revenue Accrued interest payable Total current liabilities Long -term liabilities: Capital lease payable net of current Total liabilities Fund equity: Contributed capital: Municipal funds Property owners Total contributed capital Retained earnings: Reserved for insurance Reserved for capital improvements Unreserved Total retained earnings Total fund equity Total liabilities and fund equity 122 Statement 44 1 fl Central Energy Data Totals Garage Management Processing Insurance 1994 1993 $124,670 $84,636 $37,673 $897,375 $1,144,354 $937,484 732 - - - 732 2,752 933 598 - 6,662 8,193 3,091 _ - - 34,850 34,850 18,173 82,124 - - - 82,124 80,196 208,459 85,234 37,673 938,887 1,270,253 1,041,696 316,312 395,871 - - 712,183 708,009 121,550 314,910 - - 436,460 436,460 99,653 - 18,354 - 118,007 100,298 537,515 710,781 18,354 0 1,266,650 1,244,767 236,503 203,060 1,532 - 441,095 313,518 301,012 507,721 16,822 0 825,555 931,249 $509,471 $592,955 $54,495 $938,887 $2,095,808 $1,972,945 $3,032 $17,069 $5,230 $ - $ 331 25 $11 , 208 17,342 - - - 17,342 15,535 - 95,173 - - 95,173 90,991 _ _ _ _ - 2,752 - 3,591 - - 3,591 6,527 20,374 115,833 5,230 0 141,437 127,013 - 485,404 - - 485,404 580,577 20,374 601,237 5,230 0 626,841 707,590 124,196 - - - 124,196 114,196 64,653 - - - 64,653 64,653 188,849 0 0 0 188,849 188,849 - - 938,887 938,887 761,649 44,936 - - - 44,936 38,906 255,312 (8,282) 49,265 - 296,295 275,951 300,248 (8,282) 491265 938,887 1,280,118 1,076,506 489,097 (8,282) 49,265 938,887 1,468,967 1,265,355 $509,471 $592,955 $54,495 $938,887 $2,095,808 $1,972,945 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS Statement 45 COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1994 With Comparative Totals For The Year Ended December 31, 1993 Nonoperating revenues (expenses): Interest income Central Energy Data 41,325 Totals 52,635 Miscellaneous revenues Garage Management Processing Insurance 1994 1993 Operating revenues: Interest expense - (28,936) - - (28,936) �( Charges for services: Total nonoperating revenues (expenses) 9,629 25,227 0 41,325 25,727 Services to departments $106,376 $202,657 $ - $ - $309,033 $308,750 Use of space 140,425 (119,543) (28,535) - 140,425 115,839 Insurance allocation 91,961 91,961 52,749 Recovery of damages - - - 77,258 77,258 713 Charges for sales: 64,748 77,800 - 146,548 172,748 Operating transfers (out) Sales of gasoline 49,169 - - - 49,169 50,822 Total operating revenues 295,970 202,657 0 169,219 667,846 528,873 Operating expenses: Net income (loss) 31,904 Cost of services and space 234,616 195,453 27,003 - 457,072 427,915 Claims administration - 761,649 1,076,506 3,771 31771 10,952 Supplies and services 3,979 3,979 3,299 Claims - - - 5,347 5,347 4,509 Insurance deductible - - - 4,804 4,804 - �' Depreciation 27,379 101,520 1,532 - 130,431 130,666 Total operating expenses 261,995 296,973 28,535 17,901 605,404 577,341 Net income (loss) from operations 33,975 (94,316) (28,535) 151,318 62,442 (48,468) Nonoperating revenues (expenses): Interest income 5,790 3,709 - 41,325 50,824 52,635 Miscellaneous revenues 3,839 - - - 3,839 95,443 Interest expense - (28,936) - - (28,936) (35,967) Total nonoperating revenues (expenses) 9,629 25,227 0 41,325 25,727 112,111 Net income (loss) before operating transfers 43,604 (119,543) (28,535) 192,643 88,169 63,643 Operating transfers: Operating transfers in 4,000 64,748 77,800 - 146,548 172,748 Operating transfers (out) (15,700) - - (15,405) (31,105) (14,587) Total operating transfers (11,700) 64,748 77,800 (15,405) 115,443 158,161 Net income (loss) 31,904 (54,795) 49,265 177,238 203,612 221,804 Retained earnings - January 1 268,344 46,513 - 761,649 1,076,506 854,702 Retained earnings - December 31 $300,248 ($8,282) $49,265 $938,887 $1,280,118 $1,076,506 123 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 1994 With Comparative Totals For the Year Ended December 31, 1993 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 Central Energy Data Garage Management Processing Insurance u Statement 46 1 Totals 1994 1993 $297,990 $202,657 $ - $169,219 $669,866 $527,105 ■ (135,885) (263,104) (21,773) (46,821) (467,583) 394,923 1� (106,744) - - - (106,744) (108,438) 3,839 - - - 3,839 95,443 59,200 (60,447) (21,773) 122,398 99,378 909,033 Cash flows from noncapital financing activities: - - 3,839 95,443 Operating transfers in 4,000 64,748 77,800 - 146,548 172,748 Operating transfers (out) (15,700) - (15,405) (31,105) 14,587 Net cash flows from noncapital financing activities (11,700) 64,748 77,800 (15,405) 115,443 158,161 Cash flows from capital and related financing activities: 9,207 - (25,884) (16,677) 47,826 Acquisition of fixed assets (6,383) - (18,354) - (24,737) (714,165) Interest expense (28,936) - - (28,936) (35,967) Net cash flows from capital - - 1,807 344 and related financing activities (6,383) (28,936) (18,354) 0 (53,673) 750,132 Cash flows from investing activities: Interest earned on investments Net increase (decrease) in cash and cash equivalents 5,114 3,111 - 37,497 45,722 52,635 46,231 (21,524) 37,673 144,490 206,870 369,697 Cash and cash equivalents - January 1 78,439 106,160 - 752,885 937,484 567,787 Cash and cash equivalents - December 31 $124,670 $84,636 $37,673 $897,375 $1,144,354 $937,484 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 Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in inventory, at cost (Increase) decrease in prepayments Increase (decrease) in accounts payable Increase (decrease) in accrued salaries and withholdings payable Increase (decrease) in capital lease payable Increase (decrease) in accrued interest payable Increase (decrease) in deferred revenue Total adjustments Net cash flows from operating activities 124 $33,975 ($94,316) ($28,535) $151,318 $62,442 ($48,468) 1 3,839 - - 3,839 95,443 27,379 101,520 1,532 130,431 130,666 2,020 - - 2,020 (1,768) (1,928) - - (1,928) 5,690 9,207 - (25,884) (16,677) 47,826 (5,140) 17,069 5,230 (3,036) 14,123 (1,547) 1,807 - - 1,807 344 - (90,991) - (90,991) 671,568 (2,936) - (2,936) 6,527 (2,752) - - (2,752) 2,752 25,225 33,869 6,762 (28,920 ) 36,936 957,501 $59,200 ($60,447) ($21,773) $122,398 $99,378 $909,033 CITY OF COLUMBIA HEIGHTS, MINNESOTA CENTRAL GARAGE FUND BALANCE SHEET December 31, 1994 With Comparative Totals For December 31, 1993 Assets Current assets: Cash and cash equivalents 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 Deferred revenue Total liabilities V 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 Capital Equipment Operating Replacement Account Account Statement 47 Totals 1994 1993 $80,061 $44,609 $124,670 $78,439 732 - 732 2,752 606 327 933 257 82,124 - 82,124 80,196 163,523 44,936 208,459 161,644 255,312 316,312 - 316,312 312,138 121,550 - 121,550 121,550 99,653 - 99,653 100,298 537,515 0 537,515 533,986 236,503 - 236,503 211,978 301,012 0 301,012 322,008 $464,535 $44,936 $509,471 $483,652 $3,032 $ - $3,032 $8,172 17,342 - 17,342 15,535 - - - 2,752 2074 0 20,374 26,459 124,196 - 124,196 124,196 64,653 - 64,653 64,653 188,849 0 188,849 188,849 - 44,936 44,936 38,906 255,312 - 255,312 229,438 255,312 44,936 300,248 268,344 444,161 44,936 489,097 457,193 $464,535 $44,936 $509,471 $483,652 125 CITY OF COLUMBIA HEIGHTS, MINNESOTA CENTRAL GARAGE FUND Statement 48 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Faded December 31, 1994 With Comparative Totals For The Year Ended December 31, 1993 Operating revenues: Charges for services: Services to departments Use of space Charges for sales: Sales of gasoline Total operating revenues Operating expenses: Cost of services and space Depreciation Total operating expenses Net income from operations Nonoperating revenues Interest income Miscellaneous revenues Total nonoperating revenues Net income before operating transfers Operating transfers: Operating transfers in Operating transfers (out) Total operating transfers Net income Retained earnings - January 1 Retained earnings - December 31 126 Capital Equipment Operating Replacement Totals Account Account 1994 1993 $106,376 $ - $106,376 $106,094 140,425 - 140,425 115,839 49,169 - 49,169 50,822 295,970 0 295,970 272,755 234,616 - 234,616 230,369 27,379 - 27,379 29,126 261,995 0 261,995 259,495 33,975 0 33,975 13,260 3,760 2,030 5,790 4,388 3,839 - 3,839 3,638 7,599 2,030 9,629 8,026 41,574 2,030 43,604 21,286 - 4,000 4,000 4,000 (15,700) - (15,700) (4,000) (15,700) 4,000 (11,700) 0 25,874 6,030 31,904 21,286 229,438 38,906 268,344 247,058 $255;312 $44,936 $300,248 $268,344 CITY OF COLUMBIA HEIGHTS, MINNESOTA CENTRAL GARAGE FUND Statement 49 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1994 With Comparative Amounts For the Year Ended December 31, 1993 i 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 Cash flows from capital and related financing activities: Acquisition of fixed assets Cash flows from investing activities: Interest earned on investments Net increase in cash and cash equivalents ICash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income to Net cash flows from operating activities IOperating income Adjustments to reconcile operating income to net cash flows from operating activities: Miscellaneous revenues Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in inventory, at cost Increase (decrease) in accounts payable Increase (decrease) in accrued salaries and withholdings payable Increase (decrease) in deferred revenue Total adjustments Net cash flows from operating activities 1994 $297,990 (135,885) (106,744) 3,839 59,200 4,000 (15,700) (11,700) 1993 $270,259 (116,918) (108,438) 3,638 48,541 111 - 111 (6,383) (3,384) 5,114 4,388 46,231 49,545 78,439 28,894 $124,670 $78,439 $33,975 $13,260 3,839 27,379 2,020 (1,928) (5,140) 1,807 (2,752) 25,225 $59,200 3,638 29,126 (2,496) 5,690 (3,773) 344 2,752 35,281 $48,541 127 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENERGY MANAGEMENT FUND Statement 50 BALANCE SHEET December 31, 1994 With Comparative Amounts For December 31, 1993 Assets Current assets: Cash and cash equivalents Interest receivable Prepayments Total current assets Fixed assets: Buildings Improvements other than buildings Total fixed assets Less: accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Capital lease payable current Accrued interest payable Total current liabilities Long -term liabilities: Capital lease payable net of current Total liabilities Retained earnings: Unreserved Total liabilities and fund equity 128 1994 $84,636 $106,160 598 - 9,207 85,234 115,367 395,871 314,910 710,781 203,060 507,721 $592,955 395,871 314,910 710,781 101,540 609,241 $724,608 $17,069 $ - 95,173 90,991 3,591 6,527 115,833 97,518 485,404 580,577 601,237 678,095 (8,282) 46,513 $592,955 $724,608 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENERGY MANAGEMENT FUND Statement 51 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1994 With Comparative Amounts For The Year Ended December 31, 1993 1 129 1994 1993 Operating revenues: Charges for services: Services to departments $202,657 $202,656 Total operating revenues 202,657 202,656 Operating expenses: Cost of services and space 195,453 197,546 Depreciation 101,520 101,540 ' Total operating expenses 296,973 299,086 Net income (loss) from operations (94,316) (96,430) Nonoperating revenues (expenses): Interest 3,709 - Miscellaneous revenues - 10,162 Interest expense (28,936) (35,967) Total nonoperating revenues (25,227) (25,805) Net income (loss) before operating transfers (119,543) (122,235) Operating transfers: Operating transfers in 64,748 168,748 Net income (loss) (54,795) 46,513 Retained earnings - January 1 46,513 - Retained earnings - December 31 ($8,282) $46,513 1 129 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENERGY MANAGEMENT FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1994 With Comparative Amounts For the Year Ended December 31, 1993 Statement 52 1994 1993 Cash flows from operating activities: Cash received from customers $202,657 $202,656 Cash paid to suppliers for goods and services (263,104) 471,342 Miscellaneous revenues - 10,162 Net cash flows from operating activities (60,447) 684,160 Cash flows from noncapital financing activities: Operating transfers in 64,748 168,748 Cash flows from capital and related financing activities: Acquisition of fixed assets - (710,781) Interest expense (28,936) (35,967) Net cash flows from capital and related financing activities (28,936) (746,748) Cash flows from investing activities: Interest earned on investments 3,111 - Net increase (decrease) in cash and cash equivalents (21,524) 106,160 Cash and cash equivalents - January 1 106,160 - Cash and cash equivalents - December 31 $84,636 $106,160 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) ($94,316) ($96,430) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues - 10,162 Depreciation expense 101,520 101,540 Changes in assets and liabilities: (Increase) decrease in prepayments 9,207 (91207) (Increase) decrease in accounts payable 17,069 - Increase (decrease) in capital lease payable (90,991) 671,568 Increase (decrease) in accrued interest payable (2,936) 6,527 Total adjustments 33,869 780,590 Net cash flows from operating activities ($60,447) $684,160 130 CITY OF COLUMBIA HEIGHTS, MINNESOTA DATA PROCESSING FUND Statement 53 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1994 1 131 1994 Operating revenues $ - Operating expenses: Cost of services 27,003 Depreciation 1,532 Total operating expenses 28,535 Net income (loss) from operations (28,535) Operating transfers: Operating transfers in 77,800 Net income 49,265 Retained earnings - January i - Retained earnings - December 31 $49,265 1 131 CITY OF COLUMBIA HEIGHTS, MINNESOTA DATA PROCESSING FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1994 Cash flows from operating activities: Cash paid to suppliers for goods and services Cash flows from noncapital financing activities: Operating transfers in Cash flows from capital and related financing activities: Acquisition of fixed assets Net increase 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: Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts payable Total adjustments Net cash flows from operating activities 132 Statement 54 1994 ($21,773) 77,800 (18,354) 37,673 $37,673 ($28,535) 1,532 5,230 6,762 ($21,773) F COLUMBIA HEIGHTS MINNESOTA CIT Y O , INSURANCE FUND Statement 55 BALANCE SHEET December 31, 1994 With Comparative Amounts For December 31, 1993 1994 1993 Assets Current assets: Cash and cash equivalents $897,375 $752,885 Receivables: Interest 6,662 2,834 Prepayments 34,850 8,966 Total assets $938,887 $764,685 Liabilities and Fund Equity Current liabilities: Accounts payable $ - $3,036 Fund equity: Retained earnings: Reserved for insurance 938,887 761,649 r Total liabilities and fund equity $938,887 $764,685 133 CITY OF COLUMBIA HEIGHTS, MINNESOTA INSURANCE FUND Statement 56 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1994 With Comparative Amounts For The Year Ended December 31, 1993 Operating revenues: Insurance allocation Recovery of damages Total operating revenues Operating expenses: Claims administration Supplies and services Claims Insurance deductible Total operating expenses Net income from operations Nonoperating revenues: Interest income Miscellaneous revenues Total nonoperating revenues Net income before operating transfers Operating transfers: Operating transfers (out) Net income Retained earnings - January 1 Retained earnings - December 31 134 $91,961 77,258 $52,749 713 169,219 53,462 3,771 10,952 3,979 3,299 5,347 4,509 4,804 - 17,901 18,760 151,318 34,702 41,325 48,247 - 81,643 41,325 129,890 192,643 164,592 (15,405) (10,587) 177,238 154,005 761,649 607,644 $938,887 $761,649 r 1 I CITY OF COLUMBIA HEIGHTS, MINNESOTA 1 INSURANCE FUND Statement 57 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1994 With Comparative Amounts For the Year Ended December 31, 1993 Cash flows from operating activities: Cash received from damages $169,219 $54,190 Cash paid to suppliers for goods and services (46,821) 40,499 IMiscellaneous revenues - 81,643 Net cash flows from operating activities 122,398 176,332 Cash flows from noncapital financing activities: Operating transfers (out) (15,405) (10,587) Cash flows from investing activities: Interest earned on investments 37,497 48,247 Net increase in cash and cash equivalents 144,490 213,992 Cash and cash equivalents - January 1 752,885 538,893 Cash and cash equivalents - December 31 $897,375 $752,885 Reconciliation of operating income to Net cash flows from operating activities Operating income $151,318 $34,702 Adjustments to reconcile operating income to net cash flows from operating activities: Miscellaneous revenues 81,643 Changes in assets and liabilities: (Increase) decrease in accounts receivable - 728 (Increase) decrease in prepayments (25,884) 57,033 Increase (decrease) in accounts payable (3,036) 2,226 Total adjustments (28,920) 141,630 Net cash flows from operating activities $122,398 $176,332 135 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: tDeferred Compensation Fund - used to account for assets held by deferred compensation trustee. Permit Surchar eg Fund - used to account for SAC charges and surcharges 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. Police/Fire Contingency - used to account for future years' expenditures related to police and fire. Compensated Absences - used to account for funds that have been set aside by the City Council for compensated absences. 137 CITY OF COLUMBIA HEIGHTS, MINNESOTA FIDUCIARY FUNDS COMBINING BALANCE SHEET December 31, 1994 Expendable Trust Flex Police/Fire Compensated Agency Assets Benefit Contingency Absences Funds Cash and investments Receivables: Interest 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 Designated for subsequent years' expenditures Undesignated Total fund balance Total liabilities and fund balance 138 Statement 58 $7,549 $162,003 $368,399 $10,697 $548,648 37 - 1,846 - 1,883 - - - 1,860,493 1,860,493 $7,586 $162,003 $370,245 $1,871,190 $2,411,024 $2,171 $ - 2,171 0 $ - $1,816 $3,987 - 1,860,493 1,860,493 - 8,412 8,412 - 370,245 - 370,245 - 162,003 - - 162,003 5,415 - - - 5,415 5,415 162,003 370,245 0 537,663 $7,586 $162,003 $370,245 $1,871,190 $2,411,024 CITY OF COLUMBIA HEIGHTS, MINNESOTA EXPENDABLE TRUST FUNDS Statement 59 1 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1994 Flex Police/Fire Compensated Benefit Contingency Absences Total Revenues: Flex withholding $32,198 $ - $ - $32,198 Interest 229 - 11,451 11,680 Forfeiture 315 - 315 Other revenues 7,503 7,503 Total revenues 40,245 0 11,451 51,696 1 Expenditures: Other services and charges 35,535 - - 35,535 Revenues over expenditures 4,710 0 11,451 16,161 Other financing sources: Operating transfers in - 162,003 150,000 312,003 Net increase in fund balance 4,710 162,003 161,451 328,164 Fund balance - January 1 705 - 208,794 209,499 Fund balance - December 31 $5,415 $162,003 $370,245 $537,663 139 CITY OF COLUMBIA HEIGHTS, MINNESOTA FIDUCIARY FUNDS Statement 60 COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - ALL AGENCY FUNDS For The Year Ended December 31, 1994 Balance Balance 1/1/94 Additions Deletions 12/31/94 Total All Agency Funds Assets Cash and investments: General account Payroll account Total cash and investments Assets held by deferred compensation trustees Total assets Liabilities Accounts payable Deferred compensation payable to employees Deposits Other liabilities Total liabilities Deferred Compensation Agency Fund Assets Assets held by deferred compensation trustee Liabilities Deferred compensation payable to employees Permit Surcharge Agency Fund Assets Cash and investments - general account Liabilities SAC charges/surcharges payable Escrow Agency Fund Assets Cash and investments: General account Payroll account Total assets Liabilities Deposits Other liabilities: Payroll deductions payable Employee activity Total liabilities $6,163 $1,534 $ - $7,697 1,000 2,000 - 3,000 7,163 3,534 0 10,697 1,523,237 337,256 - 1,860,493 $1,530,400 $340,790 $0 $1,871,190 $667 $1,149 $ - $1,816 1,523,237 337,256 - 1,860,493 5,742 2,670 - 8,412 754 - 285 469 $1,530,400 $341,075 $285 $1,871,190 $1,523,237 $337,256 $ - $1,860,493 $1,523,237 $337,256 $ - $1,860,493 $312 $1,468 $ - $1,780 $312 $1,468 $ - $1,780 $5,851 $66 $ - $5,917 1,000 2,000 - 3,000 $6,851 $2,066 $0 $8,917 $5,742 $2,670 $ - $8,412 220 - 184 36 889 - 420 469 $6,851 $2,670 $604 $8,917 140 1 HOUSING AND REDEVELOPMENT AUTHORITY COMPONENT UNIT 141 CITY OF COLUMBIA HEIGHTS, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY FUNDS COMBINING BALANCE SHEET December 31, 1994 With Comparative Totals For December 31, 1993 142 Governmental Fund Types Special Capital Assets General Revenue Project Cash and investments $45,514 $399,679 $ - Receivables: Accounts 350 257 - Taxes 2,348 - - Interest 145 517 - Loans 304,587 - - Due from other governmental units - 150,023 - Due from other funds 211,210 - - Due from primary government 1,430 - - Due from developer - - 65,000 Prepayments 1,268 5,817 - Assets held by deferred compensation trustee - - - Real estate held for resale 21,114 - - Fixed assets - Amount to be provided for compensated absences - - - Total assets $587,966 $556,293 $65,000 Liabilities, Equity and Other Credits Liabilities: Accounts payable $1,715 $54,952 $ - Accrued salaries and withholdings payable 2,832 - - Deferred compensation payable - - - Due to other governmental units 58 35,772 - Due to other funds - 125,067 86,143 Due to primary government 2,983 11,859 - Deferred revenue 305,944 115 65,000 Deposits 1,852 11,542 - Insurance and taxes in escrow 4,275 - - Compensated absences payable - Other liabilities: Accrued liability for future program income - - - Total liabilities 319,659 239,307 151,143 Equity and other credits: Investment in general fixed assets - - - Fund balance: Reserved for prepayments 1,268 5,817 - Reserved for community development 176,163 - - Reserved for real estate held for resale 21,114 - - Unreserved: Designated for Business Revolving Loan Fund 43,964 - - Designated for maintenance - 249,577 - Undesignated 25,798 61,592 (86,143) Total equity and other credits 268,307 316,986 (86,143) Total liabilities, equity and other credits $587,966 $556,293 $65,000 142 Statement 61 Fiduciary Fund Type Account Groups General General Long- Totals Agency Fixed Assets Tenn Debt 1994 1993 $ _ $ _ $ - $445,193 $553,045 - - - 607 796 - 2,348 1,790 = = 662 574 - - - 304,587 376,195 - - 150,023 34,568 = 211,210 167,704 - - - 1,430 3,510 - - 65,000 65,000 - - - 7,085 7,544 185,447 - - 185,447 201,896 - - - 21,114 168,528 5,253,888 - 5,253,888 5,122,237 10,403 10,403 10,711 $185,447 $5,253,888 $10,403 $6,658,997 $6,714,098 $ - $ $ - $56,667 $31,780 ' = 2,832 6,107 185,447 - - 185,447 201,896 - - 35,830 31,202 e 211,210 167,704 - - - 14,842 7,648 - 371,059 443,097 _ = 13,394 10,618 - - - 4,275 4,191 - - 10,403 10,403 10,711 - - - - 87,068 185,447 0 10,403 905,959 1,002,022 - 5,253,888 - 5,253,888 5,122,237 - - - 7,085 7,544 - - - 176,163 170,497 - - - 21,114 - - - - 43,964 35,384 - - - 249,577 193,004 - - - 1,247 183,410 n 5 253 888 0 5,753,038 5,712,076 $185,447 $5,253,888 $10,403 $6,658,997 $6,714,098 143 CITY OF COLUMBIA HEIGHTS, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY FUNDS Statement 62 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES For The Year Ended December 31, 1994 With Comparative Totals For The Year Ended December 31, 1993 Expenditures: Personal services 114,483 Special Capital Totals 212,304 Supplies General Revenue Project 1994 1993 Revenues: 173,198 356,349 6,289 535,836 407,187 Taxes $58,232 $ - $ - $58,232 $8,607 Intergovernmental 55,799 544,329 - 600,128 240,927 Rents - 383,204 - 383,204 387,306 Interest 3,184 11,718 - 14,902 17,005 Other 73,427 11,194 2,089 86,710 194,541 Total revenues 190,642 950,445 2,089 1,143,176 848,386 Expenditures: Personal services 114,483 43,458 - 157,941 212,304 Supplies 2,895 20,050 - 22,945 26,563 Other services and charges 173,198 356,349 6,289 535,836 407,187 Loans and grants 19,861 330,027 - 349,888 162,794 Capital outlay 20,443 146,812 - 167,255 155,327 Total expenditures 330,880 896,696 6,289 1,233,865 964,175 Revenues over (under) expenditures (140,238) 53,749 (4,200) (90,689) (115,789) Fund balance (deficit) - January 1 408,545 263,237 (81,943) 589,839 705,628 Fund balance (deficit) - December 31 $268,307 $316,986 ($86,143) $499,150 $589,839 144 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. 145 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE For The Year Ended December 31, 1994 General Fixed Assets Land Buildings Improvements other than buildings Machinery and equipment Construction in process Total general fixed assets Investment in General Fixed Assets by Source General Obligation Bonds: Library Bonds of 1966 Municipal Building Bonds of 1959 Park Bonds of 1962 City Garage Bonds of 1972 Capital Improvement Bonds of 1976 Total general obligation bonds Grants: Federal E.D.A. and H.U.D. State Total grants Revenue sharing: Federal Anoka County Total revenue sharing Balance from current revenue and contributions Total investments in general fixed assets 146 Statement 63 , Balance Balance 1/1/94 Additions Deletions 12/31/94 $3,132,099 $ - $ - $3,132,099 3,068,022 32,429 - 3,100,451 1,443,626 28,161 - 1,471,787 4,357,038 191,235 180,419 4,367,854 603,333 322,210 - 925,543 $12,604,118 $574,035 $180,419 $12,997,734 $90,000 $ - $ - $90,000 150,000 - - 150,000 325,000 - - 325,000 510,000 - - 510,000 929,475 - - 929,475 2,004,475 0 0 2,004,475 526,290 - - 526,290 267,203 - - 267,203 793,493 0 0 793,493 1,752,317 - - 1,752,317 51,550 - - 51,550 1,803,867 0 0 1,803,867 8,002,283 574,035 180,419 8,395,899 $12,604,118 $574,035 $180,419 $12,997,734 1 l J CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY For The Year Ended December 31, 1994 Statement 64 j Balance Balance 1/1/94 Additions Deletions 12/31/94 LGeneral government: Council $22,565 $290 $ - $22,855 Manager 23,723 729 - 24,452 Finance and elections 268,953 2,578 271,531 Assessing 15,097 - - 15,097 Planning 679 - 679 General government buildings 1 1,123,137 8,791 1,131,928 Total general government 1,454,154 12,388 0 1,466,542 ' Public safety: Police/animal/civil defense 416,817 51,355 24,942 443,230 Fire 409,810 30,248 - 440,058 Inspections 20,380 5,795 - 26,175 Total public safety 847,007 87,398 24,942 909,463 Public works: Engineering 213,181 13,246 1,775 224,652 Maintenance 1,741,595 73,024 149,751 1,664,868 Total public works 1,954,776 86,270 151,526 1,889,520 Other departments: Sanitation 652 - - 652 Parks and recreation 7,373,426 62,108 3,121 7,432,413 Library 350,151 3,661 830 352,982 Cable television 20,619 - - 20,619 Construction in process 603,333 322,210 925,543 Total other departments 8,348,181 387,979 3,951 8,732,209 Total general fixed assets $12,604,118 $574,035 $180,419 $12,997,734 1 147 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 1994 General government: Council Manager Finance and elections Assessing Planning General government buildings Total general government Public safety: Police/animal/civil defense Fire Inspections Total public safety Public works: Engineering Maintenance Total public works Other departments: Sanitation Parks and recreation Library Cable television Construction in process Total other departments Totals .• Statement 65 , $3,132,099 $3,100,451 $1,471,787 $4,367,854 $925,543 $12,997,734 Improvements Machinery Other Than and Construction Land Buildings Buildings Equipment In Process Total $ - $ - $ - $22,855 $ - $22,855 - - - 24,452 - 24,452 - - - 271,531 - 271,531 - - - 15,097 - 15,097 - - - 679 - 679 110,920 933,556 19,396 68,056 - 1,131,928 110,920 933,556 19,396 402,670 0 1,466,542 - - 1,710 441,520 - 443,230 - 24,530 2,199 413,329 - 440,058 - - - 26,175 - 26,175 0 24,530 3,909 881,024 0 909,463 - 4,487 2,801 217,364 - 224,652 - 18,750 563,404 1,082,714 - 1,664,868 0 23,237 566,205 1,300,078 0 1,889,520 - - - 652 - 652 3,000,179 1,918,169 882,277 1,631,788 - 7,432,413 21,000 200,959 - 131,023 - 352,982 - - - 20,619 - 20,619 - - - - 925,543 925,543 3,021,179 2,119,128 882,277 1,784,082 925,543 8,732,209 $3,132,099 $3,100,451 $1,471,787 $4,367,854 $925,543 $12,997,734 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 Funds. lut, CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF GENERAL LONG -TERM DEBT December 31, 1994 Amount Available And To Be Provided For The Payment Of General Long -Term Debt Statement 66 Amount available in Debt Service Funds $1,171,524 Amount to be provided for retirement of- Long-term debt 9,276,169 Liability for compensated absences 373,270 Note payable to HRA 14,463 Total available and to be provided for $10,835,426 General Long -Term Debt Payable Note payable to HRA $14,463 General Obligation Bonds payable 9,679,721 Accreted interest on Capital Appreciation Bonds 767,972 Liability for compensated absences payable 373,270 Total general long -term debt payable $10,835,426 150 CITY OF COLUMBIA HEIGHTS, MINNESOTA 'SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY December 31, 1994 I Statement 67 General Obligation Bonds Year Principal Interest 1995 $1,055,000 $392,961 1996 1,155,000 304,268 1997 1,155,000 246,128 ' 1998 990,000 190,390 1999 945,000 138,167 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 $9,679,721 $5,832,823 151 LJ11 J 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA , t t 152 1 SUPPLEMENTARY FINANCIAL INFORMATION 153 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINING SCHEDULE OF BONDS PAYABLE December 31, 1994 Tax Increment Bonds Tax Increment Bonds Series 1 Bonds maturing on or after March 1, 1992 will be subject to redemption and prepayment at the option of the City in inverse order on March 1, 1991 and any interest payment date thereafter at 100% of their principal plus accrued interest. G.O. Tax Increment Refunding Bonds of 1987 Series A Bonds maturing on or after March 1, 1995 will be subject to redemption and prepayment in whole or in part in inverse order of maturity at the option of the issuer on March 1, 1994 and any interest payment date thereafter at a price of the principal amount thereof plus accrued interest. G.O. Tax Increment Capital Appreciation Bonds of 1990 G.O. Tax Increment Refunding Bonds of 1991 All bonds maturing on or after March 1, 2000 shall be subject to redemption and prior payment in whole or in part at the option of the issuer on March 1, 1999 and on any day thereafter at a price of par and accrued interest. 154 Interest Issue Maturity Rate Date Date 6/1/84 3/l/94 3/01-9/01 9.40% 3/01-9/01 6.40% 6.60 % 6.80% 7.00% 7.10% 7.20% 7.30% 7.40% 7.50% 9/01 6.90% 6.95% 7.00% 7.00% 7.10% 7.10% 7.15% 7.15% 3/01-9/01 4.75% 5.00% 5.10% 5.30% 5.50% 5.60% 5.70% 5.80% 6/1/87 3/1/02 8/23/90 9/1/09 11/21/91 3/1/02 Exhibit 1 Page 1 of 2 155 Interest i Original Balance Balance Paid in Issue 1/1/94 Sold Retired 12/31/94 Current Year ' $1,070,000 $160,000 $ - $160,000 $ - $7,520 9,090,000 7,245,000 - 7,210,000 35,000 224,858 2,399,721 2,399,721 - - 2,399,721 - 6,670,000 6,670,000 - - 6,670,000 353,242 155 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINING SCHEDULE OF BONDS PAYABLE December 31, 1994 Interest interest accrued to the date of such deposit Total General Obligation Tax Increment Bonds 156 Issue Maturity Date Date 7/1/93 2/1/97 Rate Tax Increment Bonds (continued) G O Tax Increment Refunding Bonds of 1993 The City may discharge all bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient 3.80% for the payment thereof in full. If any bond should not be paid 4.40% when due, it may nevertheless be discharged by depositing with the 4.75% Registrar a sum sufficient for the payment thereof in full with 5.15% interest accrued to the date of such deposit Total General Obligation Tax Increment Bonds 156 Issue Maturity Date Date 7/1/93 2/1/97 Exhibit 1 Page 2 of 2 157 Interest Original Balance Balance Paid in Issue 1/1/94 Sold Retired 12/31/94 Current Year ' $735,000 $735,000 $ - $160,000 $575,000 $33,300 $19,964,721 $17,209,721 $0 $7,530,000 $9,679,721 $618,920 157 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS Exhibit 2 FOR HOUSING AND REDEVELOPMENT AUTHORITY TAX INCREMENT FINANCING DISTRICTS For The Year Ended December 31, 1994 Accounted Original Amended For in Current Amount Budget Budget Prior Years Year Remaining Sources of Funds: Bond proceeds Tax increment received Interest on invested funds Real estate sales EDA grant Revenue sharing Land sale Other Total sources of funds Uses of Funds: Land acquisition Site improvements or preparation costs Installation of public utilities and improvements Other public improvements Bond payments: Principal Interest Administrative costs Other Total uses of funds Funds remaining (or deficient) 158 $8,175,000 $21,964,721 $22,658,797 $ - ($694,076) - - 11,101,715 1,116,034 (12,217,749) - - 2,877,231 57,243 (2,934,474) 702,630 753,630 1,309,177 - (555,547) 1,415,000 1,415,000 1,482,000 - (67,000) - 60,000 - - 60,000 - 7,000 55,000 - (48,000) - 340,000 2,420,197 104,611 (2,184,808) 10,292,630 24,540,351 41,904,117 1,277,888 (18,641,654) 4,800,000 7,034,000 7,418,433 - (384,433) 100,000 475,000 164,891 - 310,109 325,000 478,800 447,296 - 31,504 2,500,000 4,250,000 3,486,364 - 763,636 8,175,000 15,294,721 14,659,289 7,530,000 (6,894,568) 10,031,325 19,248,682 12,195,401 650,720 6,402,561 566,000 1,008,500 1,361,462 35,877 (388,839) 1,299,000 3,789,399 3,313,676 - 475,723 27,796,325 51,579,102 43,046,812 8,216,597 315,693 ($17,503,695) ($27,038,751) ($1,142,695) ($6,938,709) ($18,957,347) CITY OF COLUMBIA HEIGHTS, MINNESOTA 'NOTE - SOURCES OF FUNDS FOR HOUSING AND REDEVELOPMENT AUTHORITY TAX INCREMENT FINANCING DISTRICTS December 31, 1994 Exhibit 3 Note (1) Sources of Funds Real Estate Land Sales ' Land Sale Amount Date Total Cost* Propgrty ' Columbia Heights Office Plaza Evenson Properties $133,500 9/77 LaBelle Park Condo No. 1 The Gaughan Companies 137,464 9/77 Columbia Heights Mall ' Evenson Properties 138,167 1/78 LaBelle Park Condo No. 2 Gaughan Companies 168,498 2/78 'The LaBelle Park Condo No. 3 The Gaughan Companies 126,000 8/78 ' University Heights Housing 1 8/80 Columbia Park Medical Clinic Park Properties 20,000 10/81 'Columbia Sullivan Lake Housing 420,000 10/83 Columbia Square ' Northeast Partners 149,459 7/84 Parkview Villa South Housing 7/86 $1,293,089 $6,116,914 'Totals Note (2) Sources of Funds Tax Exempt Obligation Issued on Behalf of Private Entities ' Development Amount Issue Type Columbia Heights Office Plaza Commercial Redevelopment Properties $6,000,000 Revenue Bonds Series 1981 'Evenson 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 Columbia Park Medical Clinic Commercial Development Refunding Columbia Park Properties 4,785,000 Revenue Bonds Series 1992 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. ' 159 (H 160 CITY OF COLUMBIA HEIGHTS, MINNESOTA III. S T A T I S T I C A L SECTION 161 CITY OF COLUMBIA HEIGHTS, MINNESOTA ASSESSED VALUE, TAX CAPACITY, AND Table 1 ESTIMATED ACTUAL VALUE OF ALL TAXABLE PROPERTY (A) Years 1985 Through 1994 (Unaudited) fLl c t ll Ratio of Total Assessed/ Tax c-x 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 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 14,532,465 522,002,900 208,985 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 2.309/o 1991 9,901542 536,614,500 210,051 4,258,500 (510,571) 3,290,306 12,891,328 540,873,000 2.38% 1992 9,503,314 538,522,400 207,255 4,398,000 (609,791) 3,067,799 12,168577 542,920,400 2.24% 1993 9,226574 537,840,800 207,309 4,447,000 (594,265) 2,852,940 11,692,558 542,287,800 2.16% 1994 9,021,129 541,715,800 207,658 4,549,100 (608,080) 2,759,929 11,380,636 546,264,/ 2.08% (A) For tax collection years 1988 and prior, taxable valuation was calculated based on a specific formula applied to estimated actual value, which resulted in an assessed valuation, which was then used as a base upon which to spread the annual tax levies. Beginning in 1989, the State of Minnesota legislated a change in this formula. This change is intended to reflect the burden or "tax capacity" that property is able to bear. The new formula results in a considerably smaller taxable valuation for the City. In this table, for the purpose of comparison only,. 1988 and prior years are reported under the old system of assessed valuation, while 1989 and subsequent years are reported in terms of tax capacity. (B) The Metropolitan Fiscal Disparities Act was first implemented for taxes payable in 1975 for the seven Metropolitan counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. Forty percent of the increase in commercial - industrial (including public utility) valuation in each assessment district since 1971 is contributed to an area -wide tax base. Using the factors of population and real property market value, a per capita distribution index is calculated. This index is employed in determining what proportion of the valuation shall be distributed back to each assessment district. 162 CITY OF COLUMBIA HEIGHTS, MINNESOTA TAX RATES - PER $100 OF TAX CAPACITY Table 2 Years 1985 Through 1994 (Unaudited) ' Year (A) City School County Metro Other (B) Total 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 ' 1993 0.23021 0.68142 0.30033 0.04225 0.01018 1.26420 1994 0.26460 0.77730 0.29946 0.05280 0.01488 1.40904 (A) For tax collection years 1988 and prior, taxable valuation was calculated based on a specific formula applied to estimated actual value, which resulted in an assessed valuation, which was then used as a base upon which to spread the annual tax levies. Beginning in 1989, the State of Minnesota legislated a change in this formula. This change is intended to reflect the burden or "tax capacity" that property is able to bear. The new formula results in a considerably smaller taxable valuation for the City. In this table, for the purpose of comparison only, 1988 and prior years are reported under the old system of assessed valuation, while 1989 and subsequent years are reported in terms of tax capacity. (B) Rice Creek Watershed, Mosquito Control, and Housing and Redevelopment Authority. 163 CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY TAX LEVY Table 3 Years 1985 Through 1994 (Unaudited) Fiscal City Levy General Police Fire , Year Total Fund Relief Relief Library 1985 $1,825,192 $1,662,532 $79,700 $82,960 $ - 1986 1,888,616 1,725,956 79,700 82,960 - 89,700 82,960 - ' 1987 2,181,115 2,008,455 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 - - - 1993 3,463,645 3,084,666 - - 378,979 ' 1994 3,548,960 3,158,342 - - 390,348 164 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA TAX LEVIES AND TAX COLLECTIONS Table 4 Years 1985 Through 1994 (Unaudited) ' 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 Levy* Period Period Period Collections to Tax Levy Taxes Tax Levy 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`Yo 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 99.00/0 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 ' 1993 2,453,972 2,400,802 97.8% 25,753 2,426,555 0.9888:1 123,285 0.05024:1 1994 1,948,860 1,911,949 98.1% 16,381 1,928,330 0.9895:1 79,071 0.04057:1 * The 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. 165 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Years 1985 Through 1994 (Unaudited) Table 5 166 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 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 1993 * 104,941 71,722 68.3% 59,468 59,185 139,047 364,055 1994 * 125,888 85,292 67.8% 39,267 60,229 102,127 304,970 * 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 due. If the installment becomes delinquent, it is certified to the County for inclusion on the following year's property tax statement and is shown as a delinquent collection. 166 MINNESOTA CITY OF COLUMBIA HEIGHTS, GENERAL GOVERNMENTAL REVENUES BY SOURCE (A) -� Table 6 Years 1985 Through 1994 (Unaudited) Special Fiscal Assessments Licenses Inter- Charges for Fines and Miscellaneous Year . Taxes (B)_ and Permits governmental Services Forfeitures Interest (C) Total 1985 $2,352,593 $ - $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 1 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 1993 3,593,244 130,454 135,545 3,782,752 464,887 89,464 665,190 136,976 8,998,512 1994 3,674,463 586,129 165,696 3,702,419 447,409 87,225 389,451 259,220 9,312,012 Notes: (A) Includes General, Special Revenue, and Debt Service Fund Types. �. (B) Beginning in 1987, the Special Assessment Fund Type was eliminated and special assessment collections were recorded in the Debt Service Fund Type. (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. 167 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (A) I Jf "e Table 7 Years 1985 Through 1994 J (Unaudited) Notes: (A) Includes General, Special Revenue, and Debt Service Fund Types. (B) 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. •: Highways Parks Fiscal General Public and and Debt Other Year Government Safety Streets Sanitation Recreation Library Service (B) Total 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 1993 1,441,603 2,679,272 806,990 149,054 1,040,459 374,625 2,963,693 499,702 9,955,398 1994 1,352,543 2,576,987 841,861 100,111 1,037,181 395,821 1,688,796 419,918 8,413,218 Notes: (A) Includes General, Special Revenue, and Debt Service Fund Types. (B) 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. •: CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL CITY OFFICIALS Year Ended December 31, 1994 Name Official Title I Mayor and Council Joseph Sturdevant Mayor Gary L. Peterson _ Councilmember Bruee -G: Nawrocki ��� j l Councilmember Donald G. Jolly Councilmember Robert W. Ruettimann Councilmember IAdministration Table 8 1 1 1 169 Patrick Hentges City Manager Linda Magee Assistant to City Manager William Elrite City Clerk- Treasurer, Finance Director June Johnston Assistant Finance Director Phil Suckerman Liquor Operations Manager Jim Hoeft City Attorney Mark Winson Public Works Director, City Engineer ' LJeonard 76lsm 7-0 Acting Chief of Police Charles Kewatt Chief of Fire Evelyn Nygaard Building Inspector Lauren McClanahan Superintendent of Public Works Recreation Services Director M. Rebecca Loader Librarian 1 1 1 169 CITY OF COLUMBIA HEIGHTS, MINNESOTA MISCELLANEOUS STATISTICS Table 9 December 31, 1994 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 473 Storm Sewers 33.6 Sanitary Sewers 59.0 Watermain Miles 66.1 Building Permits Issued 1985 508 1986 513 1987 556 1988 535 1989 473 1990 486 1991 484 1992 515 1993 505 1994 565 Estimated Construction Cost for Issued Permits 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 1993 3,292,353 1994 � 4,522,438 170 CITY OF COLUMBIA HEIGHTS, MINNESOTA MISCELLANEOUS STATISTICS December 31, 1994 C Table 9 Page 2 of 2 (Unaudited) Fire Protection Number of Stations 1 Number of Employees: Full -time 8 Volunteer 23 Police Protection Number of Stations I Number of Employees 27 Parks City Parks 13 Playgrounds 11 County Park I ' Schools Senior High I Junior High 1 1 Elementary 3 Parochial Elementary I Employees (as of December 31, 1994) Regular 111 Part -time and Temporary 318 429 Elections Registered, voters - Last City General Election 11,945 Number of Votes Cast - Last City General Election 7,660 Percentage of Registered Voters Voting 64.13% 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) 18,910 171 CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL TAXPAYERS December 31, 1994 (Unaudited) Source of Data: Anoka County Auditor's Office 172 % of Total City Tax Capacity Value 2.40% 2.30% 1.90% 1.60% 1.60% 1.60% 1.20% 1.10% 1.00% 0.80% 15.50% Table 10 Tax Capacity Taxpayer Type of Business Value Kraus - Anderson, Inc. Construction $230,062 Zaidan Holdings, Inc. Office Building 223,900 State Bank of Aurora Office Building 186,300 Columbia Park Properties Medical Building 158,479 Maylan Construction Company Retail (K -Mart) 156,610 Medtronics, Inc. Medical Manufacturing 154,951 Consolidated Realty of Minneapolis Apartments 112,751 Northern States Power Utility 110,060 Minnegasco Utility 97,117 Lynde Investment Apartments 78,398 Total Principal Taxpayers $1,508,628 Source of Data: Anoka County Auditor's Office 172 % of Total City Tax Capacity Value 2.40% 2.30% 1.90% 1.60% 1.60% 1.60% 1.20% 1.10% 1.00% 0.80% 15.50% Table 10 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN Table 11 December 31, 1994 (Unaudited) Market Value Debt Limit Percentage (Note A) Debt limit Amount of Debt applicable to debt limit: Total bonded debt Less: Tax increment bonds (Note B) Special assessment bonds Total amount of debt applicable to debt limit Legal debt margin 1994/1995 1993/1994 $546,264,900 2% 10,925,298 F 7"�y7a 1 9,679,721 9,679,721 0 $542,287,800 2% 10,845,756 17,209,721 17,209,721 0 $10,925,298 $10,845,756 Note A M.S.A. Section 475.53 (Limit on Debt) Subdivision 1. Generally, except as otherwise provided in Sections 475.51 to 475.75, "no municipality, except a school district or a city of the first class, shall incur or be subject to a net debt in excess of 2% of the taxable market value." Note B M.S.A. Section 475.51 (definitions) Subdivision 4. "Net debt" means the amount remaining after deducting from its gross debt the amount of current revenues which are applicable within the current fiscal year to the payment of any debt and the aggregate of the principal of the following: 1. Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially benefited thereby, including those which are general obligations of the municipality issuing them, if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments. 2. Warrants or orders having no definite or fixed maturity. 3. Obligations payable wholly from the income from revenue producing conveniences. 4. Obligations issued to create or maintain a Permanent Improvement Revolving Fund. 5. Obligations issued for the acquisition and betterment of public water works systems and public lighting, heating or power systems, and of any combination thereof or for any other public convenience from which a revenue is or may be derived. 6. Not applicable. 7. Amount of all money and face value of all securities held as a Debt Service Fund for the extinguishment of obligations other than those deductible under this subdivision. 1 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. 173 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING DEBT Table 12 December 31, 1994 (Unaudited) Direct debt: City of Columbia Heights Overlapping debt: Anoka County Metropolitan Council Regional Transit District Totals 174 Net General Obligation Debt $9,679,721 102,820,298 379,505,000 1,400,000. $493,405,019 Percentage Applicable to City 100.0% Amount Applicable to City of Columbia Heights Share of Debt $9,679,721 7.1% 7,300,241 0.6% 2,277,030 0.6% 8,400 $19,265,392 CITY OF COLUMBIA HEIGHTS, MINNESOTA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS Years 1985 Through 1994 (Unaudited) Fiscal 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 * Pronertv Value (A Real Personal Total of Units Value $108,671,288 $1,426,869 $110,098,157 113,721,411 1,500,988 115,222,399 114,767,361 1,547, 299 116,314,660 116,314,660 1,679, 868 117,994,528 14,532,465 208,985 14,741,450 10,022,891 212,505 10,235,396 9,901,542 210,051 10,111,593 9,503,314 207,255 9,710,569 9,226,574 207,309 9,433,883 9,021,129 207,658 9,228,787 Amount expressed in thousands. Table 13 Construction Number Bank of Units Value Deposits (B) 508 $4 ,938,226 $ - 513 13,269,300 - 556 4,215,085 - 535 8,916,756 - 473 5,180,247 7,018,831 (C) 486 5,198,200 10,311,528 484 4,894,021 9,923,902 515 2,373,433 10,155,837 505 3,292,353 16,636,883 (D) 565 4,522,438 24,438,648 (A) Estimated assessed (1985 -1987) and tax capacity (1988 -1994) values from Table 1. (B) Source: Federal Banking Directory Note: Deposits listed are for Northeast State Bank, Marquette Bank Minneapolis, First Banks, Norwest Bank, and First Community Credit Union (C) Figures for First Community Credit Union are not included for 1989. (D) 1992 amounts were used for First Banks and Norwest because 1993 amounts were not available. 175 1 1 1 176 CITY OF COLUMBIA HEIGHTS, MINNESOTA RATIO OF NET GENERAL OBLIGATION BONDED DEBT Table 14 TO ASSESSED VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA Years 1985 Through 1994 (Unaudited) Ratio of Net Bonded Gross Debt to Net Bonded Fiscal Assessed Bonded Less Debt Net Bonded Assessed Debt Per Year Population Value Debt Service Fund Debt Value Capita 1985 19,540 $119,037,475 $16,003,999 $2,068,577 $13,935,422 11.71% $713 1986 19,540 125,079,734 15,678,648 2,009,689 13,668,959 10.93% 700 1987 19,540 126,187,408 23,130,000 13,141,901 9,988,099 7.92% 511 1988 19,540 130,685,327 22,485,000 12,999,367 9,485,633 7.26% 485 1989 19,540 16,494,805 21,770,000 12,665,931 9,104,069 55.19% 466 1990 18,910 12,363,969 16,464,721 5,175,702 11,289,019 91.31% 597 1991 18,910 12,891,328 20,415,165 9,603,694 10,811,471 83.87% 572 1992 18,910 12,168,577 19,059,721 8,916,964 10,142,757 83.35% 536 1993 18,910 11,692,558 17,209,721 7,922,087 9,287,634 79.43% 491 1994 18,910 11,380,636 9,679,721 1,171,524 8,508,197 74.76% 450 1 1 1 176 CITY OF COLUMBIA HEIGHTS, MINNESOTA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES Table 15 FOR GENERAL OBLIGATION BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES Years 1985 Through 1994 ! (Unaudited) i Ratio of Total Debt Service to Total General General Fiscal Debt Governmental Governmental Year Principal Il Interest Service Expenditures Expenditures 1985 $ - $1,138,086 $1,138,086 $5,446,895 20.9% 1 1 I 1986 280,000 1,107,623 1,387,623 5,950,680 23.3% ' t 1987 335,000 1,149,699 1,484,699 7,024,427 21.1% 1988 645,000 1,105,922 1,750,922 9,220,648 19.0% 1989 715,000 1,674,234 2,389,234 9,568,158 25.0% I 1990 780,000 1,333,923 2,113,923 10,579,583 20.0% 1991 2,895,000 905,604 3,800,604 10,470,518 36.3% } 1992 1,180,000 1,017,432 2,197,432 9,014,734 24.4% 1993 1,875,000 1,035,788 2,910,788 9,955,398 29.2% 1994 1,015,000 618,920 1,633,920 8,413,218 19.4% 177 CITY OF COLUMBIA HEIGHTS, MINNESOTA [1 rl r 178 � SINGLE AUDIT AND OTHER REQUIRED REPORTS 179 CH WHO CITY OF COLUMBIA HEIGHTS, MINNESOTA *MUTGES, FREDP `J T�--�1- & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report on Supplementary Information - Schedule of Federal Financial Assistance 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, 1994, and have issued our report thereon dated March 17, 1995 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, Government Auditing Standards, issued by the Comptroller General of the United States and the provisions of Office of Management and Budget Circular A -128, Audits of State and Local Governments. Those standards and OMB Circular 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. ' 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 March 17, 1995 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 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE For The Year Ended December 31, 1994 Federal Funding Source/ Federal 1994 Activity Pass Through Agency/ CFDA Revenue Program Title Number Recognized Expenditures City of Columbia Heights: U.S. Department of Justice: Direct: Police Hiring Supplement 16.580 $10,520 $10,520 Passed - through State of Minnesota: Police Grant 16.579 26,668 26,668 Federal Emergency Management Agency: Passed - through Anoka County: Emergency Management Assistance Grant 83.503 3,510 3,510 U.S. Department of Transportation: Passed - through Anoka County: State and Community Highway Safety (ATAC) Grant 20.600 4,584 4,584 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 * 303,455 303,455 Home Investors Partnerships Program 14.239 74,707 74,707 Passed - through Metropolitan Council: Section 8 Housing Assistance Payments Program for Administrative Services 14.156 43,903 43,903 Direct: Comprehensive Improvement Assistance Program (CIAP) - Modernization Grant and Operating Subsidy 14.852 166,167 166,167 Total Federal Assistance $633,514 $633,514 * Major Program 183 CH CITY OF COLUMBIA HEIGHTS, MINNESOTA r *TA TGES, F EDPATH & CO., LTO. CERTIFIED PUBLIC ACCOUNTANTS ' Independent Auditor's Report on Compliance With General Requirements Applicable to Federal Financial Assistance Programs To the Honorable Mayor 1 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, 1994, and have issued our report thereon dated March 17, 1995. 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, 1994: 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 March 17, 1995 185 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH I: CITY OF COLUMBIA HEIGHTS, MINNESOTA *TA UTG7ES, FREDPA TH & CO., L TO. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report on Compliance With Specific Requirements Applicable to Major Federal Financial Assistance Programs ' T h Honorable Ma To n or oo y 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, 1994, and have issued our report thereon dated March 17, 1995. We have also audited the City of Columbia Heights, Minnesota's compliance with the requirements governing types of services allowed or unallowed; eligibility; matching, level of effort, or - earmarking; reporting; special tests and provisions; claims for advances and reimbursements; and amounts claimed or used for matching that are applicable to each of its major federal financial assistance programs, which are identified in the accompanying Schedule of Federal Financial Assistance, for the year ended December 31, 1994. The management of the City of Columbia Heights, Minnesota is responsible for the City of Columbia Heights, Minnesota's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. We conducted our audit of compliance with those requirements 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 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 material noncompliance with the specific requirements referred to in the second paragraph occurred. An audit includes examining, on a test basis, evidence about the City of Columbia Heights, Minnesota's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the City of Columbia Heights, Minnesota complied, in all material respects, with the specific requirements referred to in the second paragraph that are applicable to each of its major federal programs for the year ended December 31, 1994. 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 March 17, 1995 1 187 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 o FAX /426 -5004 o Member of HLB International 1 I 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA , fl 1 1 188 1 *rAES, FREDPA N H & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Retort on Compliance With Specific Requirements Applicable to 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, 1994, and have issued our report thereon ' dated March 17, 1995. 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, 1994. 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. ' TAUTGES, REDPATH & CO., LTD. Certified Public Accountants I March 17, 1995 189 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH 1011 CITY OF COLUMBIA HEIGHTS, MINNESOTA 1 ! f) F j TAU TGES, RE®PA iH & CO., L T®. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report 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, 1994, and have issued our report thereon dated March 17, 1995. 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 I Columbia Heights, Minnesota, for the year ended December 31, 1994, 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 I 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 effectiveness of the design and operation of policies and procedures may deteriorate. ' 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. We also performed tests of controls to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing and detecting irregularities that are material to the general purpose financial statements, and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the general purpose financial statements. Our tests were less in scope than would be necessary to render an opinion on internal control structure policy and procedures. Accordingly, we do not express such an opinion. 191 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH 192 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. The City of Columbia Heights, Minnesota's Housing and Redevelopment Authority did not maintain a comprehensive listing of general fixed assets. 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 not a material weakness. Recommendations regarding the above comments as well as other matters we noted involving the internal control structure and its operation, have been reported to the management of the City of Columbia Heights, Minnesota in a separate report dated May 3, 1995. ' 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 1 March 17, 1995 193 CH 101 CITY OF COLUMBIA HEIGHTS, MINNESOTA 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, 1994, and have issued our report thereon dated March 17, 1995. We have also audited the compliance of the City of Columbia Heights, ' Minnesota with requirements applicable to major federal financial assistance programs and have issued our report thereon dated March 17, 1995. 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 and about whether the City of Columbia Heights, Minnesota complied with laws and regulations, noncompliance with which would be material to a major federal financial assistance program. In planning and performing our audits for the year ended December 31, 1994, 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 of the City of Columbia Heights, Minnesota and on its compliance with requirements applicable to major programs and to report on the internal control structure in accordance 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 internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated March 17, 1995. ' 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. 195 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 0 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH 196 CITY OF COLUMBIA HEIGHTS, MINNESOTA ' For the purpose of this report, we have classified the significant internal control structure policies Pm'P and procedures used in administering federal financial assistance programs in the following ' categories: General Requirements: Specific Requirements: ' Political Activity Allowability of Service Davis -Bacon Act Eligibility Civil Rights Special Reporting Requirements Cash Management Special Tests and Provisions ' Relocation Assistance and Real Property Acquisition Federal Financial Reports Allowable Costs /Cost Principles Drug -free Work Place Administrative Requirements ' 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, 1994, the City of Columbia Heights, Minnesota expended ' 74% of its total federal financial assistance under major federal financial assistance programs and the following nonmajor program: Comprehensive Improvement Assistance Program (CLAP). ' We performed tests of controls, as required by OMB Circular A -128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we have considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements and requirements governing claims for advances and reimbursements and ' amounts claimed or used for matching that are applicable to each of the City of Columbia Heights, Minnesota's major federal financial assistance programs, which are identified in the accompanying Schedule of Federal Financial Assistance and the aforementioned nonmajor program. Our ' procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. We noted certain matters involving the internal control structure and its operation that we consider ' to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our ' 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. The Housing and Redevelopment Authority did not maintain a comprehensive listing of general fixed assets. 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. ILy CH 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 not a material weakness. Recommendations regarding the above comments as well as other matters we noted involving the internal control structure and its operation, have been reported to the management of the City of Columbia Heights, Minnesota in a separate report dated May 3, 1995. 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 March 17, 1995 199 CH ►11 CITY OF COLUMBIA HEIGHTS, MINNESOTA ' TA UTGES, REDPA TH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditors Report on Compliance ' 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, 1994, and have issued our report thereon dated March 17, 1995. ' 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, the objective of our audit of the general purpose ' financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. Reportable noncompliance findings consist of irregularities and illegal acts that are not clearly inconsequential and instances of other noncompliance that are material to the financial statements. Irregularities are intentional misstatements or omissions of amounts or disclosures in financial statements. Illegal acts are violations of laws and regulations. Instances of other noncompliance include failures to follow requirements or violations of prohibitions contained in contracts or grant agreements that cause us to conclude that the aggregation of the misstatements resulting from those failures or violations is material to the financial statements. The results of our tests of compliance disclosed no reportable noncompliance findings. 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, emu , 00���` ' TAUTGES, REDPATH & CO., LTD. Certified Public Accountants ' March 17, 1995 '201 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 o FAX /426 -5004 ® Member of HLB International CH 202 CITY OF COLUMBIA HEIGHTS, MINNESOTA