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HomeMy WebLinkAbout1995 CAFRCOMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF COLUMBIA HEIGHTS STATE OF MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 1995 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 17 H. FINANCIAL SECTION Independent Auditor's Report 21 General Purpose Financial Statements Combined Balance Sheet - All Fund Types and Account Groups and Discretely Presented Component Unit Statement 1 24 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 28 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General and Special Revenue Fund Types Statement 3 30 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - Proprietary Fund Types Statement 4 32 Combined Statement of Cash Flows - All Proprietary Fund Types Statement 5 33 Notes to Financial Statements 35 Combinirm. Individual Fund and Account Group Financial Statements General Fund: Balance Sheet Statement 6 73 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Statement 7 74 Schedule of Revenues - Budget and Actual Statement 8 76 Schedule of Expenditures - Budget and Actual Statement 9 77 CITY OF COLUMBIA HEIGHTS, MP4NESOTA TABLE OF CONTENTS Water Utility Fund: Balance Sheet Statement 33 115 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 34 116 Statement of Cash Flows Statement 35 117 Sewer Utility Fund: Balance Sheet Statement 36 118 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 37 119 Statement of Cash Flows Statement 38 120 Reference Page Number Special Revenue Funds: Combining Balance Sheet Statement 10 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 11 82 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Municipal State Aid Street Fund Statement 12 84 Cable Television Fund Statement 13 85 Paratransit Fund Statement 14 86 D.A.R.E. Program Statement 15 87 Library Fund Statement 16 88 Community Police Statement 17 89 Project Pride Statement 18 90 Federal Police Grant Statement 19 91 Statement of Revenues, Expenditures and Changes in Fund Balance: Recreation Contributed Projects Statement 20 92 Contributed Projects Statement 21 93 Parldng Ramp Statement 22 94 Confiscated Properties Statement 23 95 Housing Mortgage Statement 24 96 FAST COPS Grant Statement 25 97 Debt Service Funds: Combining Balance Sheet Statement 26 101 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 27 102 Capital Project Funds: Combining Balance Sheet Statement 28 106 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 29 108 Enterprise Funds: Combining Balance Sheet Statement 30 112 Combining Statement of Revenues, Expenses and Changes in Retained Earnings Statement 31 113 Combining Statement of Cash Flows Statement 32 114 Water Utility Fund: Balance Sheet Statement 33 115 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 34 116 Statement of Cash Flows Statement 35 117 Sewer Utility Fund: Balance Sheet Statement 36 118 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 37 119 Statement of Cash Flows Statement 38 120 CITY OF COLUMBIA HEIGHTS, M NNESOTA TABLE OF CONTENTS Reference Page Number Refuse Utility Fund: Balance Sheet Statement 39 121 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 40 122 Statement of Cash Flows Statement 41 123 Liquor Fund: Balance Sheet Statement 42 124 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 43 125 Statement of Cash Flows Statement 44 126 Internal Service Funds: Combining Balance Sheet Statement 45 128 Combining Statement of Revenues, Expenses and Changes in Retained Earnings Statement 46 129 Combining Statement of Cash Flows Statement 47 130 Central Garage Fund: Balance Sheet Statement 48 131 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 49 132 Statement of Cash Flows Statement 50 133 Energy Management Fund: Balance Sheet Statement 51 134 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 52 135 Statement of Cash Flows Statement 53 136 Data Processing Fund: Balance Sheet Statement 54 137 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 55 138 Statement of Cash Flows Statement 56 139 Insurance Fund: Balance Sheet Statement 57 140 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 58 141 Statement of Cash Flows Statement 59 142 Trust and Agency Funds: Fiduciary Funds: Combining Balance Sheet Statement 60 144 Expendable Trust Funds: Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 61 145 Fiduciary Funds: Combining Statement of Changes in Assets and Liabilities - All Agency Funds Statement 62 146 CITY OF COLUMBIA ]HEIGHTS, MINNESOTA TABLE OF CONTENTS Reference Page Number Housing and Redevelopment Authority Component Unit: Combining Balance Sheet Statement 63 Combining Statement of Revenues, Expenditures and Changes m Fund Balance - All Governmental Fund Types Statement 64 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Statement 65 General Fixed Assets Account Group: Comparative Schedule of General Fixed Assets - By Source Statement 66 Schedule of Changes in General Fixed Assets - By Function and Activity Statement 67 Schedule of General Fixed Assets - By Function and Activity Statement 68 General Long -Term Debt Account Group: Schedule of General Long -Term Debt Statement 69 Schedule of Debt Service Requirements to Maturity Statement 70 SuDUlernentary Financial Information Combining Schedule of Bonds Payable Exhibit 1 Schedule of Sources and Uses of Public Funds For Housing and Redevelopment Authority Tax Increment Financing Districts Exhibit 2 Note - Sources of Funds For Housing and Redevelopment Authority Tax Increment Financing Districts Exhibit 3 M. STATISTICAL SECTION Assessed Value, Tax Capacity, and Estimated Actual Value of all Taxable Property - 1986 Through 1995 Table 1 Tax Rates - Years 1986 Through 1995 Table 2 City Tax Levy - Years 1986 Through 1995 Table 3 Tax Levies and Tax Collections - Years 1986 Through 1995 Table 4 Special Assessment Levies and Collections - Years 1986 Through 1995 Table 5 General Governmental Revenues By Source - Years 1986 Through 1995 Table 6 General Governmental Expenditures By Function - Years 1986 Through 1995 Table 7 148 149 150 154 155 156 158 159 162 164 165 168 169 170 171 172 173 174 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Principal City Officials Miscellaneous Statistics Principal Taxpayers Computation of Legal Debt Margin Computation of Direct and Overlapping Debt Property Value, Construction and Bank Deposits - Years 1986 Through 1995 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita - Years 1986 Through 1995 Ratio of Annual Debt Service Expenditures For General Obligation Bonded Debt to Total General Governmental Expenditures - Years 1986 Through 1995 IV. SINGLE AUDIT AND OTHER REQUIRED REPORTS SECTION Independent Auditor's Report on Supplementary Information - Schedule of Federal Financial Assistance Schedule of Federal Financial Assistance Independent Auditor's Report on Compliance With General Requirements Applicable to Federal Financial Assistance Programs Independent Auditor's Report on Compliance With Specific Requirements Applicable to Major Federal Financial Assistance Programs Independent Auditor's Report on the Internal Control Structure in Accordance With Government Auditing Standards Independent Auditor's Report on the Internal Control Structure Used in Administering Federal Financial Assistance Programs Independent Auditor's Report on Compliance in Accordance with Government Auditing Standards Schedule of Findings and Questioned Costs Reference Page Number Table 8 175 Table 9 176 Table 10 178 Table 11 179 Table 12 1 180 Table 13 181 Table 14 182 Table 15 183 187 189 191 195 199 203 209 211 I. INTRODUCTORY SECTION CH CITY OF COLUMBIA HEIGHTS, KMaSOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL CITY OFFICIALS December 31, 1995 CITY COUNCIL Joseph Sturdevant, Mayor Gary L. Peterson Councilmember Bruce G. Nawrocki Councilmember ' Donald G. Jolly Councilmember Robert W. Ruettimann Councilmember CITY MANAGER Patrick Hent g es FINANCE DEPARTMENT William J. Elrite, Finance Director ' June V. Johnston, Assistant Finance Director Gary Braaten, Accounting Coordinator 3 CH CITY OF COLUMBIA ]HEIGHTS, MI 4NESOTA CITY OF COLUMBIA HEIGHTS ORGANIZATIONAL CHART Mayor- Councilmembers: Joseph Sturdeuant Donald G. Jolly Rita Petkoff Gary L. Peterson 1 Council Secretary* Robert W. Ruettimann F ty Manager: atrick Hentges POLICE (Administered by Mayor) Police Chief: Thomas Johnson Secretary II Clerk- Typist II ' Police Captain Patrol Sergeants (4) Patrol Officers (17) Investigators (3) Comm. Service Officers (3) Sr. Records Technician Secretary II-A (2) FIRE Fire Chief. Charles Kewatt Secretary H (PT) Deputy Fire Chief Firefighters (6) Volunteer Firefighters (24) LIBRARY Library Director: M. Rebecca Loader Clerk- Typist H (2) Library Supervisor (5 PT) Page (8 PT) Choreperson (PT) Adult Service Specialist Children's Librarian RECREATION Recreation Director: Randall Quale Clerk- Typist II Senior Citizen Coordinator Recreation Program Coordinator (2) Head Custodian Custodian II (3 PT) Custodian I (2 PT) HOUSING & REDEVELOPMENT AUTHORITY: HRA Director: Donald Schneider Secretary II Secretary Building Inspector Housing Coordinator Zoning/Grant Coordinator Occupancy Spec./Fam. Self -Sufi. Coord. (PT) City Manager's Secretary Asst. to City Manager Special Projects Coord. Special Assessments Accounting Clerk II Clerk- Typist H (PT) Commissions & Boards: Charter HRA Police, Fire & Civil Service Downtown Development Insurance Traffic Cable Communications Planning & Zoning Human Services Park Merit Library Science, Technology & Energy FINANCE Finance Director /City Clerk/ Treasurer. William Elrite Secretary II (PT) Assistant Finance Director Accounting Coordinator Payroll/Accounting Clerk Utilities Accounting Clerk II Utilities Accounting Clerk I . Liquor Accounting Clerk II (2 PT) Switchboard Operator/Receptionist Meter Reader Liquor Operations Manager Asst. Operations Managers (2) Retail Clerks (24 PT) Liquor Store Supervisor (4) MIS Coordinator Elections PUBLIC WORKS Public Works Director /City Engineer: Mark Winson Secretary II -A Clerk- Typist II Assistant City Engineer Engineering Technician IV Engineering Technician III Engineering Technician II Public Works Superintendent Foreman (3) Maintenance III (1) Maintenance H (6) Maintenance I (9) Foreman - Vehicle Maintenance Maintenance III - Mechanic Maintenance III- Bodyman/Painter Admin. Assistant - Public Works Clerical/Purchasing Clerk *Also serves in the capacity of Deputy City Clerk under the Finance Director /City Clerk/ Treasurer. CH CITY OF COLUMBIA HEIGHTS, M14NESOTA CITY OF COLUMBIA HEIGHTS 590 40th Avenue N. E. Columbia Heights, MN 55421 -3878 1 (612) 782 -2800 April 1, 1996 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, 1995 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, 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. �` "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 has a population of 18,910. As an older, fully developed suburb of the City of Minneapolis, the management and the residents of the City of Columbia Heights are faced with the problems of an aging infrastructure and with increased crime statistics. The City Council and City Management are taking a proactive approach in dealing with these concerns. The City Council approved a redevelopment plan to improve housing conditions in the Sheffield Neighborhood in 1994. As part of this plan, the City purchased twenty -six duplexes, most of which were removed from the properties. The year 1995 marked the beginning of construction of single family moderately priced homes on the vacant lots. A comprehensive plan for street improvements throughout the City is in the process of being developed. The acquisition of two Federal grants has assisted the Columbia Heights Police Department in acquiring three additional police officers. These officers are an asset in the City's community policing efforts. Employment in the City has remained stable. City staff in the Community Development Department and throughout the City are actively promoting the expansion and creation of new businesses in the community. Economic conditions have also remained 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 IMTIATIVES For the Year Redevelopment projects within the City continued with the purchase of additional properties and the construction of single family homes in the Sheffield Neighborhood. Plans were considered for the improvement of streets and alleys within the City over a multi -year period. Public works personnel did a very good job remodeling the City Council chambers and other areas of City Hall. Many hours were committed to this project and the result is a more updated, attractive appearance for City Hall providing better access of services for City residents. 9 For the Future Toward the end of 1995, Medtronic, Inc. announced plans to expand its operations in Columbia Heights. During 1996, the City and Medtronic will be cooperating on this expansion which will result in greater employment opportunities in the City. The City will be continuing redevelopment efforts by purchasing substandard housing in the City as it becomes available and by renovating or removing the structures. Through renovation or replacement of deteriorating structures, efforts are concentrated on providing safe, affordable housing for Columbia Heights residents. Department Focus Each year the City focuses attention on the efforts and accomplishments of a selected department. This year the Senior Citizens Program has been selected. Now, in its tenth year of operation, the Senior Center provides a wide variety of recreational, social, educational and health related programs to individuals 55 years and older in the community. Health related programs include monthly blood pressure checks and annual flu shots. The Center also provides free income tax assistance and the availability of a senior outreach worker. Educational seminars such as "Scams, Schemes and Swindles" presented by a representative from the Attorney General's office are also offered. Recreational activities including trips, bingo, bridge, 500 Club, cribbage, special parties, line dancing and driving classes are also provided by the Center. The senior's in the community provide many hours of volunteer work each year. Volunteer activities included filling 10,000 Easter eggs for the youth Easter egg hunt, breakfast with Santa and the youth Halloween party. Throughout the year they collected 455 pounds of food for the SACA food shelf. The senior's in our community are very vital and interested in living an active and meaningful life, which makes our Center an important part of their lives on a daily basis. 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. 10 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. General Government Functions Revenues for City general government functions (General, Special Revenue, Debt Service and Capital Project Funds) during 1995 totaled $9,856,121, which is a decrease of 5% from 1994. Property taxes received for the City produced 42% of general revenues compared to 35% last year. The amount of revenues from various sources and their changes from last year are shown below: Amount of Increase Percent (Decrease) Revenue Source Amount of Total from 1994 ' Taxes $4,167,428 42% $492,965 Special assessments 122,328 1% (767,034) Licenses and permits 176,290 2% 10,594 Intergovernmental 3,755,162 38% 52,743 Charges for services 383,646 4% (63,763) Fines and forfeitures 89,138 1% 1,913 Interest 637,176 6% 32,422 Other revenue 524,953 5% (254,409) Total revenues $9,856,121 100% ($494, 569) The decrease in special assessments was due to early payment of deferred assessments by Columbia Park Clinic in 1994. Interest revenues were up due to higher interest rates. 11 The expenditures for City general government functions for 1995 totaled $9,874,708, a decrease of 1% from 1994. The total expenditures for major City functions and their changes from last year are shown below: The major decrease was in the area of debt service. This is due to decreased interest costs accomplished by refandings done in past years. General Fund Balance The fund balance of the General Fund increased by $146,816 or 4.3 %. The total fund balance of $3,591,224 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 $5,690,025 in 1995. This resulted in a total net operating income of $294,579. Water, Sewer and Refuse Utilities experienced operating income increases during 1995. The Water Utility Fund experienced an operating income of $75,242 during the year, the Sewer Utility Fund experienced an operating income of $8,251 and the Refuse Utility experienced an operating income of $129,517 during 1995. During the year, the City Council designated funds from the Sewer and Water Utilities for capital equipment replacement and construction. 12 Amount of Increase Percent (Decrease) Expenditure Function Amount of Total from 1994 General government $1,395,395 14% $42,852 Public safety 2,550,980 26% (26,007) Public works 938,819 10% 96,958 Sanitation 73,815 1% (26,296) Parks and recreation 977,813 10% (59,368) Library 405,873 4% 10,052 Other & contingencies 438,914 4% 195,514 Capital outlay 1,668,466 17% (57, 279) Debt service 1,424,633 14% (264,163) Total expenditures $9,874,708 100% ($87,737) The major decrease was in the area of debt service. This is due to decreased interest costs accomplished by refandings done in past years. General Fund Balance The fund balance of the General Fund increased by $146,816 or 4.3 %. The total fund balance of $3,591,224 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 $5,690,025 in 1995. This resulted in a total net operating income of $294,579. Water, Sewer and Refuse Utilities experienced operating income increases during 1995. The Water Utility Fund experienced an operating income of $75,242 during the year, the Sewer Utility Fund experienced an operating income of $8,251 and the Refuse Utility experienced an operating income of $129,517 during 1995. During the year, the City Council designated funds from the Sewer and Water Utilities for capital equipment replacement and construction. 12 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 1995, the Central Garage Fund had an operating income of $22,843. iThe 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 account for certain costs of the City's risk-management services and to build a reserve for catastrophe losses. Trust and Agency Funds unds Agency Funds are used to account for assets held by the City in an agency capacity for tindividuals, 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. Cash Management Cash temporarily idle during the year was invested in demand deposits, certificates of deposit, obligations of the U.S. Treasury, repurchase agreements, and commercial paper. The average yield on investments for the year was 5.96 %. The City's investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, deposits were either insured by federal depository insurance or collateralized. Debt Administration At December 31, 1995, the City has a number of debt issues outstanding. These issues included $8,624,721 of General Obligation Tax Increment Bonds. 13 Risk Mana eg ment The City maintains commercial insurance coverage for liability, property, liquor liability, and i workers' compensation. As previously stated, the City maintains an Internal Service Fund for insurance. The Insurance Fund maintains a reserved balance to provide funds for catastrophe losses. 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, 1994. 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. 14 u 1 Acknowledgments 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, ` 94i— William J. E1 4e e Finance Director U June V. Johnston Assistant Finance Director 15 CH V CITY OF COLUMBIA HEIGHTS, MINNESOTA � Certificate of 1 Achievement i for Excellence in Financial 1 Reporting ` Presented to r City of Columbia Heights, .Minnesota For its Comprehensive Annual ' Financial Report for the Fiscal Year Ended December 31, 1994 ' 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. Q� OF THE W UlUIr�ATES N CAWA %, CORPUPATION s President � SEAL CN1C�60 0`� Executive Director 17 CH 18 CITY OF COLUMBIA HEIGHTS, MINNESOTA II. FINANCIAL SECTION 19 4)] 20 CITY OF COLUMBIA HEIGHTS, MINNESOTA *-nuTtGES, Ir' li LS DPA ll if I7 & CO., LT®, 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, 1995 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, 1995, 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. In accordance with Government Auditing Standards, we have also issued a report dated March 18, 1996 on our consideration of the City of Columbia Heights, Minnesota's internal control structure and a report dated March 18, 1996 on its compliance with laws and regulations. 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 18, 1996 TAUTGES, REDPATH & CO., LTD. Certified Public Accountants 21 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 0 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH 22 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. 23 CITY OF COLUMBIA HEIGHTS, M NNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNIT December 31, 1995 With Primary Government Comparative Totals For December 31, 1994 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 Proprietary Governmental Fund Types Fund Types Special Debt Capital Internal General Revenue Service Project Enterprise Service $3,533,913 $1,004,699 $2,270,042 $4,899,776 $3,753,394 $1,282,486 8,793 18,967 - 18,000 818,414 184 - - - 269,503 - - 73,036 - 145,118 - - - 21,084 7,476 13,513 41,161 34,770 11,102 - - - 11,679 - - 45,927 138,586 - - 164,363 30 187,329 854,379 - - 982,271 - 22,564 887 - 1,151 66,522 56,267 _ 608,495 86,431 - - - 224,603 - - _ - 3,771,583 724,262 $3,892,646 $2,024,994 $2,428,673 $5,465,873 $10,199,812 $2,160,762 [I 24 The accompanying notes are an integral part of these financial statements. I Statement 1 Page 1 of 2 The accompanying notes are an integral part of these financial statements. 25 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 1995 1994 Authority 1995 '$736,141 $ _ $ _ $17,480,451 $16,040,219 $649,511 $18,129,962 864,358 790,740 301 864,659 269,503 366,547 269,503 - - - 218,154 417,281 2,729 220,883 5,736 - - 134,842 106,020 5,396 140,238 ' 11,679 10,530 287,344 299,023 = _ _ 348,906 315,244 27,348 376,254 - - - 2,023,979 1,956,019 175,327 2,199,306 ' - - - - 14,842 - - - - - - - 65,000 65,000 - - - 147,391 108,573 5,969 153,360 ' 2,659,907 2,659,907 1,860,493 - 2,659,907 = = 694,926 691,622 694,926 - - - 224,603 449,000 54,115 278,718 ' - 13,041,202 = 17,537,047 17,680,025 5,521,004 23,058,051 - - 1,422,979 1,422,979 1,171,524 - 1,422,979 - - 8,196,107 8,196,107 9,276,169 - 8,196,107 - - 437,967 437,967 373,270 - 437,967 ' - - 13,678 13,678 14,463 - 13,678 $3,401,784 $13,041,202 $10,070,731 $52,686,477 $51,642,581 $6,794,044 $59,480,521 The accompanying notes are an integral part of these financial statements. 25 CITY OF COLUMBIA HEIGHTS, MINNE SOTA , COMBINED BALANCE SHEET- ' ALL FUND TYPES AND ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNIT December 31, 1995 With Primary Government Comparative Totals For December 31, 1994 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 $34,715 $10,764 $ - $96,909 $295,354 $60,091 120,782 10,677 - 15 84,327 21,843 - 15,801 - 740 - - - - - 36,000 - - _ - - 485,404 78,257 326 11,097 - 170,248 - - 126,005 854,379 1,043,595 - - 67,668 - 140,218 269,598 - - 3,002 - - - 1,125 3,744 - 301,422 163,573 1,005,694 1,447,982 553,673 570,340 22,564 468,612 - 1,368,192 188,849 2,583,421 1,121,137 - 5,694,526 280,436 225,754 - - 3,153,889 198,183 1,422,979 17,040 - - 414,771 1,194,626 - 3,775,097 - - 3,591,224 1,861,421 1,422,979 4,017,891 9,646,139 1,590,422 Total liabilities, equity and other credits $3,892,646 $2,024,994 $2,428,673 $5,465,873 $10,199,812 $2,160,762 1 26 The accompanying notes are an integral part of these financial statements. I Statement 1 Page 2 of 2 $3,401,784 $13,041,202 $10,070,731 $52,686,477 $51,642,581 $6,794,044 $59,480,521 The accompanying notes are an integral part of these financial statements. 27 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 1995 1994 Authority 1995 $54,025 $ - $ - $551,858 $418,577 $36,980 $588,838 237,644 223,294 11,729 249,373 = = 16,541 16,146 16,541 - - 13,678 49,678 86,463 - 49,678 - - 485,404 580,577 485,404 ' 2,659, 907 _ 2,659,907 1,860,493 _ 2,659,907 - - - 259,928 258,019 66,101 326,029 - - - 2,023,979 1,956,019 175,327 2,199,306 - - - - 1,430 - - - - - 477,484 787,171 565,358 1,042,842 8,624,721 8,624,721 9,679,721 - 8,624,721 ' _ = 3,002 3,591 3,002 - - 994,365 994,365 767,972 - 994,365 7,951 - - 12,820 8,711 14,085 26,905 ' - - 437,967 437,967 373,270 - 437,967 397 - - 397 469 33,002 33,399 2,722,280 0 10,070,731 16,835,695 17,021,923 902,582 17,738,277 - - 1,557,041 1,622,270 - 1,557,041 ' _ 13,041,202 13,041,202 12,997,734 5,521,004 18,562,206 - - - 3,704,558 3,720,626 - 3,704,558 ' - - - 5,974,962 5,471,473 - 5,974,962 - - - 716,930 918,170 27,082 744,012 ' 668,995 - - 5,461,086 5,257,526 364,776 5,825,862 10,509 - - 5,395,003 4,632,859 (21,400) 5,373,603 679,504 13,041,202 0 35,850,782 34,620,658 5,891,462 41,742,244 $3,401,784 $13,041,202 $10,070,731 $52,686,477 $51,642,581 $6,794,044 $59,480,521 The accompanying notes are an integral part of these financial statements. 27 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS AND DISCRETELY PRESENTED COMPONENT UNIT For The Year Ended December 31, 1995 With Primary Government Comparative Totals For The Year Ended December 31, 1994 28 The accompanying notes are an integral part of these financial statements. Governmental Fund Types Special Revenues: General Revenue Taxes $2,204,400 $390,348 Special assessments - Licenses and permits 176,290 - intergovernmental 3,131,943 623,219 Charges for services 281,623 102,023 Fines and forfeits 89,138 - Interest 161,346 57,217 Other revenues 21,331 62,623 Total revenues 61066,071 1,235,430 Expenditures: Current: General government 1,395,395 - Public safety 2,550,980 - Public works 938,819 - Sanitation 73,815 - Parks and recreation 938,113 39,700 Library - 405,873 Other - 438,123 Contingencies 791 - Capital outlay - 394,503 Debt service - - Total expenditures 5,897,913 1,278,199 Revenues over (under) expenditures 168,158 (42,769) Other financing sources (uses): Payment of refunded bonds - - Operating transfers in 412,914 280,396 Operating transfers (out) (441,087) (90,085) Operating transfers in from component unit 6,831 - Operating transfers (out) to primary government - ' Total other financing sources (uses) (21,342) 190,311 Net increase (decrease) in fund balance 146,816 147,542 Fund balance - January 1 3,444,408 1,713,879 Fund balance - December 31 $3,591,224 51,861,421 28 The accompanying notes are an integral part of these financial statements. Statement 2 - - - 1,395,395 1,352,543 - 1,395,395 - - - 2,550,980 2,576,987 r 2,550,980 - - - 938,819 841,861 '. Totals - - - 73,815 100,111 Component (Memorandum - - Fiduciary 977,813 1,034,271 Unit Only) - - Fund Type Totals (Memorandum Only) Housing and Reporting ' Debt Capital Expendable Primary Government Redevelopment Entity Service Project Trust 1995 1994 Authority 1995 $1,572,680 $ - $ - $4,167,428 $3,674,463 $66,008 $4,233,436 1,668,466 122,328 - 122,328 889,362 - 122,328 = 1,424,633 1,273,963 176,290 165,696 9,997,980 176,290 - - 171,231 3,926,393 3,702,419 601,404 4,527,797 141,841 123,253 34,709 418,355 479,607 385,094 803,449 = = 89,138 87,225 - 89,138 103,408 315,205 43,898 681,074 616,434 40,938 722,012 ' - 440,998 - 524,952 787,180 90,735 615,687 1,676,088 878,531 249,838 10,105,958 10,402,386 1,184,179 11,290,137 - - - 1,395,395 1,352,543 - 1,395,395 - - - 2,550,980 2,576,987 - 2,550,980 - - - 938,819 841,861 - 938,819 - - - 73,815 100,111 - 73,815 - - - 977,813 1,034,271 - 977,813 - - - 405,873 392,160 - 405,873 - - 107,997 546,120 277,206 1,125,867 1,671,987 - - - 791 1,729 - 791 - 1,273,963 - 1,668,466 1,732,316 - 1,668,466 1,424,633 - - 1,424,633 1,688,796 - 1,424,633 1,424,633 1,273,963 107,997 9,982,705 9,997,980 1,125,867 11,108,572 251,455 (395,432) 141,841 123,253 404,406 58,312 181,565 - - - - (6,515,000) - - 1,412,961 352,890 - 2,459,161 9,627,369 - 2,459,161 (1,412,961) (60,821) - (2,004,954) (9,115,278) - (2,004,954) - 180,173 - 187,004 - - 187,004 - - - - - (187,004) (187,004) 0 472,242 0 641,211 (6,002,909) (187,004) 454,207 251,455 76,810 141,841 764,464 (5,598,503) (128,692) 635,772 1,171,524 3,941,081 537,663 10,808,555 16,407,058 499,150 11,307,705 $1,422,979 $4,017,891 $679,504 $11,573,019 $10,808,555 $370,458 $11,943,477 The accompanying notes are an integral part of these financial statements. 29 CITY OF COLUMBIA HEIGHTS, DHNNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUND TYPES For The Year Ended December 31, 1995 General Over (under) Budget Actual Budget Revenues: Taxes $2,225,351 $2,204,400 Licenses and permits 128,450 176,290 Intergovernmental 3,127,412 3,131,943 Charges for services 347,661 281,623 Fines and forfeits 100,000 89,138 Interest 172,500 161,346 Other revenues 22,680 21,331 Total revenues 6,124,054 6,066,071 Expenditures: Current: General government Public safety Public works Sanitation Parks and recreation Library Other Contingencies Total current expenditures Capital outlay Total expenditures Revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers (out) Operating transfers in from component unit Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 1,487,797 2,583,158 1,091,497 167,231 1,026,199 154,542 6,510,424 V,✓LV,TLT 1,395,395 2,550,980 938,819 73,815 938,113 5,897,913 ($20,951) 47,840 4,531 (66,038) (10,862) (11,154) (1,349) (57,983) (92,402) (32,178) (152,678) (93,416) (88,086) (153,751) (612,511) IV iL+,J L L) (386,370) 168,158 554,528 415,126 412,914 (2,212) (397,792) (441,087) (43,295) - 6,831 6,831 17,334 (21,342) (38,676) ($369,036) 146,816 $515,852 3,444,408 $3,591,224 30 The accompanying notes are an integral part of these financial statements. Statement 3 O 1 The accompanying notes are an integral part of these financial statements. 31 Totals (Memorandum Only) Special Revenue 1995 Over Over (under) (under) ' Budget Actual Budget Budget Actual Budget $390,348 $390,348 $ - $2,615,699 $2,594,748 ($20,951) r- - - 128,450 176,290 47,840 504,762 616,214 111,452 3,632,174 3,748,157 115,983 108,100 95,936 (12,164) 455,761 377,559 (78,202) - - - 100,000 89,138 (10,862) 20,000 41,401 21,401 192,500 202,747 10,247 6,800 17,127 10,327 29,480 38,458 8,978 ' 1,030,010 1,161,026 131,016 7,154,064 7,227,097 73,033 ' - - 1,487,797 1,395,395 (92,402) = 2,583,158 2,550,980 (32,178) - - - 1,091,497 938,819 (152,678) - - - 167,231 73,815 (93,416) 1,850 1,877 27 1,028,049 939,990 (88,059) 418,390 405,873 (12,517) 418,390 405,873 (12,517) 266,299 412,141 145,842 266,299 412,141 145,842 - - - 154,542 791 (153,751) 686,539 819,891 133,352 7,196,963 6,717,804 (479,159) 283,315 385,027 101,712 283,315 385,027 101,712 969,854 1,204,918 235,064 7,480,278 7,102,831 (377,447) 60,156 (43,892) (104,048) (326,214) 124,266 450,480 r 3,500 204,033 200,533 418,626 616,947 198,321 (117,362) (90,085) 27,277 (515,154) (531,172) (16,018) ' 6,831 6,831 (113,862) 113,948 227,810 (96,528) 92,606 189,134 ($53,706) 70,056 $123,762 (422,742) 216,872 $639,614 612,651 - 4,057,059 r$682,707 ($422,742) $4,273,931 The accompanying notes are an integral part of these financial statements. 31 CITY OF COLUMBIA HEIGHTS, MDa4 SOTA COMBINED STATEMENT OF REVENUES, EXPENSES AND Statement 4 ' CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPES For The Year Ended December 31, 1995 With Comparative Totals For The Year Ended December 31, 1994 ' Internal Totals Enterprise Service (Memorandum Only) Funds Funds 1995 1994 Operating revenues: Charges for services $2,400,231 $560,096 $2,960,327 $2,977,870 , Charges for sales 6,808,633 48,038 6,856,671 6,648,806 Total operating revenues 9,208,864 608,134 9,816,998 9,626,676 Operating ' expenses: Costs of sales, services, and goods sold 7,061,316 493,252 7,554,568 7,347,853 Operating expense 1,428,007 53,555 1,481,562 1,319,174 Depreciation 211,952 139,693 351,645 378,181 ' Total operating expenses 8,701,275 686,500 9,387,775 9,045,208 Net income (loss) from operations 507,589 (78,366) 429,223 581,468 ' Nonoperating revenues (expenses): Interest income 302,227 84,964 387,191 262,280 Intergovernmental 64,131 - 64,131 46,983 ' Miscellaneous revenues 93,129 5,556 98,685 10,920 Interest expense - , (24,728) (24,728) (28,936) Miscellaneous expenses (78,103) - (78,103) (26,810) ' Total nonoperating revenues (expenses) 381,384 65,792 447,176 264,437 Net income (loss) before operating transfers 888,973 (12,574) 876,399 845,905 ' Operating transfers: Operating transfers in 385,510 149,729 535,239 296,169 Operating transfers (out) (973,746) (15,700) 989,446 808,260 Total operating transfers (588,236) 134,029 454,207 512,091 Net income 300,737 121,455 422,192 333,814 Credit for depreciation on contributed assets 65,229 - 65,229 65,229 Net increase in retained earnings 365,966 121,455 487,421 399,043 , Retained earnings - January 1 7,911,981 1,280,118 9,192,099 8,793,056 ' Retained earnings - December 31 $8,277,947 $1,401,573 $9,679,520 $9,192,099 i� 32 The accompanying notes are an integral part of these financial statements. 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES For The Year Ended December 31, 1995 With Comparative Totals For The Year Ended December 31, 1994 Cash flows from operating activities: Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues Miscellaneous expenses Net cash flows from operating activities Cash flows from noncapital financing activities: Operating transfers in from other funds Operating transfers (out) to other funds Net cash flows from noncapital financing activities Cash flows from capital and related financing activities: Acquisition of fixed assets Disposition of fixed assets Interest expense Net cash flows from capital and related financing activities Cash flows from investing activities: Interest earned 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 to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income to net cash provided (used) by operating activities: Miscellaneous revenues Miscellaneous expenses Depreciation expense Changes in assets and liabilities: (Increase) decrease accounts receivable (Increase) decrease due from other governmental units (Increase) decrease due from other funds (Increase) decrease prepayments (Increase) decrease inventory, at cost Increase (decrease) accounts payable Increase (decrease) accrued salaries and withholdings payable Increase (decrease) due to other governmental units Increase (decrease) capital lease payable Increase (decrease) accrued interest payable Increase (decrease) deferred revenue Increase (decrease) deposits Total adjustments Net cash flows from operating activities Internal Enterprise Service Funds Funds $9,154,146 (7,645,142) (819,858) 157,260 (78,103) 768,303 Statement 5 Totals (Memorandum Only) 1995 1994 $608,652 $9,762,798 $9,509,510 (483,514) (8,128,656) (7,922,035) (145,518) (965,376) (834,023) 5,556 162,816 58,551 (78,103) (26,810) (14,824) 753,479 785,193 385,510 149,729 535,239 296,169 (973,746) (15,700) (989,446) (808,260) (588,236) 134,029 (454,207) (512,091) (204,584) (38,400) (242,984) (115,595) 77,785 - 77,785 - - (24,728) (24,728) (28,936) (126,799) (63,128) (189,927) (144,531) 295,187 82,055 377,242 213,337 295,187 82,055 377,242 213,337 348,455 138,132 486,587 341,908 3,404,939 1,144,354 4,549,293 4,207,385 $3,753,394 $1,282,486 $5,035,880 $4,549,293 $507,589 ($78,366) $429,223 $581,468 157,260 5,556 162,816 58,551 (78,103) - (78,103) (26,810) 211,952 139,693 351,645 378,181 (54,718) 548 (54,170) 49,795 13,748 (30) 13,718 114,039 39,760 - 39,760 (281,000) (8,491) (21,417) (29,908) (74,523) 1,003 (4,307) (3,304) (31,931) (36,808) 34,760 (2,048) (3,018) 5,050 4,501 9,551 17,498 6,317 - 6,317 99,622 - (95,173) (95,173) (90,991) - (589) (589) (2,936) - - - (2,752) 3,744 - 3,744 - 260,714 63,542 324,256 203,725 $768,303 ($14,824) $753,479 $785,193 The accompanying notes are an integral part of these financial statements. 33 CH 34 CITY OF COLUMBIA HEIGHTS, MINNESOTA I CITY OF COLUMBIA HEIGHTS, MINNESOTA ' NOTES TO FINANCIAL STATEMENTS December 31, 1995 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ■ The City of Columbia Heights was incorporated in 1898. The City is governed by a Council composed of an elected mayor and four councilmembers. The Council exercises legislative authority and determines all matters of policy. The Manager, who is appointed by the Council, is responsible for the proper administration of all 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 are not prepared. 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. Govemment 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. 35 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 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. 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 Grout) - 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. 36 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 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 and Expendable Trust Funds use the "financial flow" measurement focus. Consequently, their revenues are recognized when they become measurable and available as net current assets. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenue sources susceptible to accrual include property taxes, intergovernmental revenue, and interest earned on investments. Expenditures are recognized under the modified accrual basis of accounting when a liability is ' incurred, except for principal and interest on general long -term obligations which are recognized when due. Compensated absences are considered expenditures when paid to employees. Proprietary Funds are accounted for using the "capital maintenance" measurement focus and are reported on the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recorded at the time liabilities are incurred. 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. tThe 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. tFormal 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. 37 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 Amounts shown in the financial statements represent the original budgeted amounts and the following increases in appropriations: General Fund $303,441 Special Revenue Funds: State aid maintenance 12,100 Cable TV 7,165 Library 6,375 Totals $329,081 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: Fund Special Revenue Funds: Budgeted funds Unbudgeted funds: Housing Mortgage Recreation Contributed Projects Contributed Projects Parking Ramp Confiscated property FAST COPS Grant Total Special Revenue Funds Total Other Fund Balance Financing Fund Balance December 31, Total Total Sources December 31, 1994 Revenues Expenditures (Uses) 1995 $612,651 $1,161,026 $1,204,918 $113,948 5682,707 466,261 1,464 - - 467,725 4,614 42,030 37,823 - 8,821 24,599 9,247 21,447 - 12,399 603,132 14,352 - - 617,484 2,622 306 - - 2,928 - 7,005 14,011 76,363 69,357 $1,713,879 $1,235,430 $1,278,199 $190,311 $1,861,421 E. ASSETS, LIABILITIES, AND FUND EQUITY ACCOUNTS ASSETS Cash and Investments - Cash balances from all funds of the City and HRA 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. 38 t CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 Special 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. Proprietary Fund Types - Fixed assets of the Proprietary Funds are stated at historical cost, estimated historical cost, or in the case of contributions, at fair market value at the time received. Depreciation has been provided using the straight -line method over the estimated useful lives of assets as follows: Buildings 40 -50 years Machinery and equipment 3 -20 years Improvements 5 -20 years Distribution system 50 -100 years Depreciation on contributed assets charged to operations is closed to the contributed equity account. 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 EOUITY Contributed capital is recorded in Proprietary Funds that have received capital grants or contributions from developers, customers, or other funds. W CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 Fund balance accounts are subdivided: Reserved fund balance accounts indicate that portion of fund equity which has been legally segregated for specific purposes or is not appropriable for expenditures. Unreserved designated fund balance accounts indicate that portion of fund equity that the City has set aside for planned future projects. Unreserved undesignated fund balance accounts indicate that portion of fund equity which is available for budgeting and expending in future periods. F. REVENUES AND EXPENDITURES 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. 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. Intergovernmental Revenues - Intergovemmental 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. 40 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 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. H. COMPARATIVE DATA Comparative total data for the prior year has been presented in the accompanying financial statements to provide an understanding of changes in the City's financial position and operations. Comparative data for each fund type has not been presented in the combined statements since their inclusion could make the statements unduly complex and difficult to read. L STATEMENT OF CASH FLOWS For purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with an original maturity of three months or less to be cash equivalents. All of the Proprietary Funds' equity in the City-wide cash and investment management pool is considered to be cash equivalents. Note 2 DEPOSITS AND INVESTMENTS The City maintains a cash and investment pool that is available for use by all funds of the City and BRA. 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. 41 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 Deposits at December 31, 1995, including checking accounts, savings accounts, and certificates of deposit are as follows: Total Bank balance $1,238,254 Carrying amount $1,118,557 At December 31, 1995, 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 IHWs agent in the FIR-A'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. 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. W CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 Investment balances at December 31, 1995 are as follows: Custodial Credit Risk Category Carrying Market 1 2 3 Value Value U.S. Government Securities (including securities insured by the U.S. Government) $12,256,217 $ - $ - $12,256,217 $12,215,411 Mutual funds 4,750,185 4,764,540 Total investments $17,006,402 $16,979,951 Assets held by deferred compensation trustees $2,659,907 $2,659,907 SUMMARY OF CASH AND INVESTMENTS Cash and investments at December 31, 1995 are summarized as follows: City HRA Total Cash on hand $4,953 $50 $5,003 Investments /deposits 17,475,498 649,461 18,124,959 Total cash and investments $17,480,451 $649,511 $18,129,962 Assets held by deferred compensation trustees (recognized at market value) $2,659,907 $ - $2,659,907 43 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 Note 3 LEGAL COMPLIANCE/BUDGETS Total actual expenditures exceeded budgeted expenditures (appropriations) in the following funds for 1995: Budgeted Actual Over Expenditures Expenditures Budget City: Special Revenue Funds: State Aid Street D.A.R.E. Program Project Pride Total Special Revenue Funds HRA: Special Revenue Funds: Low Income Housing (MIST 105) Total 44 $302,394 $630,573 $328,179 5,781 5,823 42 1,850 1,877 27 310,025 638,273 328,248 319,100 359,167 40,067 $629,125 $997,440 $368,315 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 Note 4 INTERGOVERNMENTAL RECEIVABLES Intergovernmental receivables at December 31, 1995 presented as due from other governmental units are composed of the following: City: General Fund: City of St. Anthony $556 Anoka County 26,936 City of Hilltop 5,540 City of Minneapolis 556 Independent School District #13 12,339 Total General Fund 45,927 Special Revenue Funds: Federal Police Grant - Federal Department of Justice 23,359 FAST COPS - Federal Department of Justice 7,005 Municipal State Aid - State of Minnesota 102,135 Paratransit: Met Council 5,931 City of Hilltop 156 Total Special Revenue Funds 138,586 Enterprise Funds: Sewer - MCES 124,200 Refuse - Anoka County 37,615 Liquor - State of Minnesota 2,548 Total Enterprise Funds 164,363 Internal Service Funds: Insurance - Hennepin County 30 Total City 348,906 HRA: Anoka County 27,348 Total Intergovemmental Receivables $376,254 45 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 INTERCEPTOR ACQUISITION CONTRACT RECEIVABLE As of January 1, 1971, the Metropolitan Waste Control Commission (MWCC) assumed ownership of all existing interceptors 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 Environmental Services (MCES). As of December 31, 1995, a balance of $99,149 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 MCES for deferments of reserve capacity costs granted to other communities. The balance of this receivable from MCES at December 31, 1995 was $1,443 and is collectible over the next four years. Note 5 LOANS RECEIVABLE Loans receivable at December 31, 1995 consist of the following: City: Sheffield Redevelopment $11,679 Business Revolving Loans 42,296 Mortgage Loans 71,364 Anoka County Community Action Program (ACCAP) Loans 173,684 Total HRA 287,344 Total $299,023 The HRA loans relate primarily to personal residences of lower income individuals under a Community Development Program. .R CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 Note 6 INTERFUND RECEIVABLES AND PAYABLES Individual fund interfund receivables and payables at December 31, 1995 consist of the following: Capital Project Funds: 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 1,043,595 854,379 169,000 - 813,271 - 2,023,979 2,023,979 175,327 - - 55,305 - 120,022 175,327 175,327 $2,199,306 $2,199,306 47 Interf ind Interfund Receivables Payables City: General Fund $187,329 $ - Special Revenue Funds: Municipal State Aid Streets - 126,005 Parking 408,027 - Housing Mortgage 446,352 - Capital Project Funds: 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 1,043,595 854,379 169,000 - 813,271 - 2,023,979 2,023,979 175,327 - - 55,305 - 120,022 175,327 175,327 $2,199,306 $2,199,306 47 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 Note 7 INTERFUND TRANSFERS From To Amount Purpose Operating: General 3,036 Administrative labor General DARE Project $3,500 Fund DARE Program General Sheffield 18,295 Fund labor General Energy management 67,929 Energy improvements General Library 200,000 Provide operating capital General FAST COPS 76,363 Fund City portion General Infrastructure 50,000 Fund future improvements General Capital Improvement 25,000 Fund project Liquor Capital Improvement 60,001 Fund project Central Garage Central Garage Equipment Replacement Account 4,000 Garage building improvements Tax Increment Bonds 1991A Tax Increment Bonds 1997A 36,155 Debt service Tax Increment Bonds Tax Increment Bonds of 1991A 1,168,411 Debt service Capital Improvement Projects Capital Improvement 5,494 Closeprojects Tax Increment Bonds Tax Increment Bonds of 1993A 208,395 Debt service Water Utility Water Capital Equipment Replacement Account 15,000 Fixed assets replacement Water Capital Equipment Replacement Account Water Utility 8,714 Fixed asset replacement Water Capital Construction Account Water Utility 12,372 Fund projects Sewer Utility Sewer Capital Equipment Replacement Account 25,000 Replacement fixed assets Liquor Infrastructure 50,000 Fund future improvements Capital Improvement Municipal State Aid 533 Fund projects Sewer Capital Equipment Replacement Sewer Utility 8,714 Equipment replacement Capital Improvement Projects General 54 ,794 Administrative labor Cable Television General 49,452 Administrative labor Panrtransit General 4,869 Administrative labor Liquor General 56,602 Administrative labor Water Utility General 59,756 Administrative labor Refuse Utility General 96,021 Administrative labor Liquor Capital Equipment Replacement 140,000 Replacement fixed assets Sewer Utility General 59,756 Administrative labor Library General 6,664 Administrative labor Municipal State aid General 25,000 State aid street maintenance Municipal State aid Capital Equipment Replacement 4,100 Fund equipment Sewer Capital Construction Sewer 315,710 Fund projects Water Utility Data processing 11,700 Fund data processing services Sewer Utility Data processing 11,700 Fund data processing services Refuse Utility Data processing 11,700 Fund data processing services Liquor Data processing 31,000 Fund data processing services Central Garage Data processing 11,700 Fund data processing services Total City operating transfers 2,994,400 Component Unit Operating: Community Development Sheffield 71,040 Guaranteed funding Community Development General 3,036 Administrative labor Low Income Housing (MN-105) General 1,716 Administrative labor Patkview Villa South Housing General 792 Administrative labor Anoka County CDBG General 1,056 Administrative labor Anoka County CDBG General 231 ADA improvements Anoka County CDBG Sheffield 109,133 Property purchase Total Component Unit operating transfers 187,004 Grand total operating transfers 53,181,404 48 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 Note 8 FIXED ASSETS The following is a summary of changes in the General Fixed Assets Account Group during the fiscal year: Sewer Balance Total Balance Total January 1, Utility Utility December 31, City 1995 Additions Retirements 1995 545,223 Land $3,132,099 $71,264 $ - $3,203,363 Buildings 3,100,451 66,904 - 3,167,355 Improvements other than buildings 1,471,787 31,466 - 1,503,253 Machinery and equipment 4,367,854 405,089 18,695 4,754,248 Construction in process 925,543 412,983 925,543 412,983 Total City general fixed assets $12,997,734 $987,706 $944,238 $13,041,202 Construction in process 11,539 - Balance - 11,539 Balance 11,539 January 1, 3,488,086 3,99,538 December 31, HRA 1995 Additions Retirements 1995 1,801,915 Land $69,688 $46,568 $ - $116,256 Buildings and structures 4,836,722 93,839 - 4,930,561 Furniture and fixtures 347,478 126,709 - 474,187 Total HRA general fixed assets $5,253,888 $267,116 $0 $5,521,004 The following is a summary of Proprietary Fund Type fixed assets at December 31, 1995: 49 Water Sewer Refuse Total Internal Total Utility Utility Utility Liquor Enterprise Service Proprietary Land 545,223 $36,586 $ - 54,360 $96,169 S - $86,169 Buildings 250,325 47,843 - 182,681 480,849 712,524 1,193,373 Improvements other than buildings 2 ,877,579 3,424,405 2,890 104,538 6,409,412 436,460 6,845,872 Machinery and equipment 303 ,420 481,704 7,538 361,842 1,154,504 156,373 1,310,877 Construction in process 11,539 - - - 11,539 - 11,539 Total 3,488,086 3,99,538 10,428 653,421 8,142,473 1,305,357 9,447,830 Less accumulated depreciation 1,801,915 2,154,639 5,537 408,799 4,370,890 581,095 4,951,985 Net fixed assets $1,686,171 $1,835,899 54,891 $244, 622 $3,771,583 $724,262 $4,495,845 49 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 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, 1995 amounted to $99,513. 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, 1995 amounted to $56,496. Future minimum rental payments are as follows: Top Valu Top Valu II 1996 $88,785 $36,610 1997 88,785 36,610 1998 88,785 6,102 1999 88,785 - Total $355,140 $79,322 Note 10 CAPITAL LEASE The City leases building improvement and other improvement retrofits 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 retrofit improvements remains with the lessor. Full and legal title to the retrofit improvements 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 retrofit improvements per the terms of the lease. Future rental payments are as follows: Principal 1996 $99,548 1997 104,124 1998 108,910 1999 113,916 2000 58,906 Interest Total $20,942 $120,490 16,366 120,490 11,580 120,490 6,574 120,490 1,339 60,245 Total $485,404 $56,801 $542,205 50 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 For accounting purposes, this lease is considered a capital lease. The related assets recorded in the financial statements are as follows: Building and other improvements $710,781 Accumulated depreciation (304,620) Net $406,161 Note 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: Tax Increment Bonds: General Obligation Tax Increment Capital Appreciation Bonds of 1990 Principal General Obligation Tax Increment Refunding Bonds of 1991 General Obligation Tax Increment Refunding Bonds of 1993 735,000 3.80 -5.15% 7/1/93 2/1/97 390,000 $8,624,721 51 Final Original Interest Issue Maturity Balance Issue Rate Date Date End of Year $2,399,721 6.90 -7.15% 8/23/90 9/1/09 $2,399,721 6,670,000 4.75 -5.80% 12/1/91 3/1/02 5,835,000 735,000 3.80 -5.15% 7/1/93 2/1/97 390,000 $8,624,721 51 CITY OF COLUMBIA HEIGHTS, MIIMSOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 Annual debt service requirements to maturity for general obligation bonds including interest of $5,439,862 are as follows: Fiscal Year Ending December 31 Total 1996 $1,459,268 1997 1,401,128 1998 1,180,390 1999 1,085,167 2000 986,980 Thereafter 7,951,650 Totals $14,064,583 At December 31, 1995, a total of $1,422,979 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 1995) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1995 52 Redevelopment BRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $174,323 $1,020,101 $845,778 $28,434,721 $20,200,000 $8,234,721 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 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 1995) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1995 C. 1984 University Avenue Redevelopment C8 Type of District Authorizing Law Duration of District Original Tax Capacity Current Tax Capacity (for taxes collectible in 1995) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1995 D. 1987 Sullivan Lake Development H2 Type of District ' Authorizing Law Duration of District ' Original Tax Capacity Current Tax Capacity (for taxes collectible in 1995) Captured Tax Capacity Retained ' Bonds Issued Principal Payments Bonds Outstanding at December 31, 1995 Redevelopment BRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $37,598 $59,843 $22,245 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $25,176 $112,641 $87,465 $1,070,000 $1,070,000 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $42,120 $106,036 $63,916 $1,835,000 $1,445,000 $390,000 53 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 E. 1989 Multi -Use Redevelopment Plan K2 Type of District Authorizing Law Duration of District Original Tax Capacity Current Tax Capacity (for taxes collectible in 1995) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1995 Redevelopment BRA (Minnesota Statutes Sections 462.545 and 462.585) October 4, 2014 $8,114 $22,844 $14,730 Changes in Long -Term Liabilities - During the year ended December 31, 1995, the following changes occurred in liabilities reported in the General Long -Term Debt Account Group: 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, 1995, accreted interest of $994,365 was included in general long -term debt for the 1990 Tax Increment Capital Appreciation Bonds. 54 1 Balance Balance ' City January 1 Additions Reductions December 31 Note payable to BRA $14,463 $ - $785 $13,678 ' General Obligation Tax Increment Bonds: Principal 9,679,721 - 1,055,000 8,624,721 Accreted interest 767,972 226,393 - 994,365 ' Liability for compensated absences 373,270 64,697 - 437,967 ' Total City $10,835,426 $291,090 $1,055,785 $10,070,731 Balance Balance BRA January 1 Additions Reductions December 31 ' Liability for compensated absences $10,403 $ - $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, 1995, accreted interest of $994,365 was included in general long -term debt for the 1990 Tax Increment Capital Appreciation Bonds. 54 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 Note 12 FUND EQUITY The following funds had a fund deficit as of December 31, 1995: Fund neficit City: Special Revenue Funds: Municipal State Aid $44,632 Capital Project Funds: Sheffield Redevelopment Fund 825,465 Internal Service Funds: Energy Management 61,766 BRA: Capital Project Fund 120,022 The City will finance these deficits through external or internal sources in future years. For various reasons, certain funds have a portion of their fund equity reserved or designated for specific purposes. A discussion of each such item as it appears on the Combined Balance Sheet follows: A. RESERVATION OF RETAINED EARNINGS Reserve for Insurance - This reserve in the Insurance Internal Service Fund represents funds set aside to pay any claims from the period during which the City had no commercial insurance, and funds set aside to pay any amounts that may arise from a claim that exceeded the limits of current commercial policies. Reserve for Capital Replacement/Construction - This reserve in the Water and Sewer Enterprise Funds and the Central Garage Internal Service Fund represents funds set aside to pay for appropriate future capital replacement/construction projects. Reservations of retained earnings are summarized as follows at December 31, 1995: Reserve for capital replacement /construction: Water Utility Fund Sewer Utility Fund Central Garage Fund Reserve for insurance Total Internal Enterprise Service Total $525,394 $ - $525,394 2,058,027 - 2,058,027 - 52,267 52,267 1,068,870 1,068,870 $2,583,421 $1,121,137 $3,704,558 55 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 B. RESERVATION OF FUND BALANCES Reserve for Community Development - This reserve in the Housing and Redevelopment Authority's General Fund represents available resources dedicated to community development activities by prior community development grants. 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, 1995 are summarized as follows: Reserve for prepayments Reserve for program expenditures Reserve for real estate held for resale Reserve for community development Totals City BRA Total $24,602 $5,969 $30,571 467,725 - 467,725 224,603 21,113 245,716 $716,930 $27,082 $744,012 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. PR CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 Designations for unreserved fund balances at December 31, 1995 are summarized as follows: Note 13 SEGMENT INFORMATION - ENTERPRISE FUNDS The City maintains four Enterprise Funds which are intended to be self- supporting. Financial segment information as of and for the year ended December 31, 1995 is as follows: Water City of Columbia Heights - Refuse Component Total Operating revenue $1,163,870 Special Debt Capital Expendable, Unit 72,645 93,024 Geneml Revenue service Project Trust HRA Total Designated for compeasaW absences $ - $ - $ - $ - $397,480 $ - $397,480 Designated for debt service - - 1,422,979 - - - 1,422,979 Designated for - Woquent years a q-&tm- 10283 - - 17,040 27015 - 298,838 Designated for wo&ing capital 3,143,606 198,183 - - - - 3,341,789 Designated for PV VS maintenance - - - - - 332,931 332,931 Designated for Business Revolving Loan find - - - - - 31,845 31,845 Trial designated unreserved find balance $3,153,889 $198,183 $1422,979 $17 ,040 $668,995 $364,776 $5,825,862 Note 13 SEGMENT INFORMATION - ENTERPRISE FUNDS The City maintains four Enterprise Funds which are intended to be self- supporting. Financial segment information as of and for the year ended December 31, 1995 is as follows: Note 14 PROPRIETARY FUNDS' CONTRIBUTED CAPITAL This balance represents the cost of property contributed to the Enterprise Funds and Internal Service Funds by the City, less depreciation 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 $804,219 $629,202 $188,849 $1,622,270 Less: Depreciation on contributed assets (26,294) (38,935) - (65,229) Balance - end of year $777,925 $590,267 $188,849 $1,557,041 57 Water Sewer Refuse Liquor Total Operating revenue $1,163,870 $1,061,075 $1,293,894 $5,690,025 $9,208,864 Depreciation expense 72,645 93,024 1,218 45,065 211,952 Operating income (loss) 75,242 8,251 129,517 294,579 507,589 Net income (loss) 79,207 87,623 148,345 (14,438) 300,737 Total opasting transfers (71,456) (71,456) (107,721) (337,603) (588,236) Property, plant and equipment additions 55,004 124,952 1,931 (55,088) 126,799 Net working capital 1,237,451 2,497,284 1,058,320 982,352 5,775,407 Net cash provided by operating activities 128,556 135,347 181,598 322,801 768,302 Total assets 3,003,586 4,500,268 1,063,242 1,632,716 10,199,812 Total equity - contributed 777,925 590,267 - - 1,368,192 Total equity - retained earnings 2,145,697 3,842,065 1,063,211 1,226,974 8,277,947 Note 14 PROPRIETARY FUNDS' CONTRIBUTED CAPITAL This balance represents the cost of property contributed to the Enterprise Funds and Internal Service Funds by the City, less depreciation 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 $804,219 $629,202 $188,849 $1,622,270 Less: Depreciation on contributed assets (26,294) (38,935) - (65,229) Balance - end of year $777,925 $590,267 $188,849 $1,557,041 57 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 Note 15 DEFINED BENEFIT PENSION PLANS - STATEWIDE A. PLAN DESCRIPTION All full-time and certain part-time employees of the City of Columbia Heights are covered by defined benefit pension plans administered by the Public 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, 1995 was $2,690,243 and $1,271,019, respectively, the City's total payroll was $4,778,188. 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 highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for 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. 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. A reduced retirement annuity is also available to eligible members seeking early retirement. 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. 58 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 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 July 1, 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. The required contribution rate consists of (a) normal costs based on entry age normal cost methods, (b) a supplemental contribution for amortizing any unfunded actuarial accrued liability by the date required for full funding, and (c) an allowance for administrative expenses. 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) 4.31% 4.60% ' PEPFF 7.60% 11.40% The recommended rates scheduled above represent the required rates for ' fiscal year 1995 contributions as reported in the July 1, 1994, actuarial valuation reports. 9.76% 19.00% Total contributions made by the City during the fiscal year ended December 31, 1995 were: Percentage of Amount Covered Payroll Employer Employees Employer $138,764 4.75% 4.93% Employees PERF $127,993 PEPFF 96,598 Totals $224,591 144,896 7.60% 11.39% $283,660 The City's contribution for the year ended June 30, 1995 to the PERF represented .111 percent of total contributions required of all participating entities. For the PEPFF, contributions for the year ended December 31, 1995, represented .412 percent of total contributions required of all participating entities. C. FUNDING STATUS AND PROGRESS Pension Benefit Obligation The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure, which is the actuarial present value of credited projected benefits, is intended to help users assess PERA's funding status on a going -concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among Public Employees' Retirement Systems and among employers. PERA does not make separate measurements of assets and pension benefit obligation for individual employers. 59 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 The pension benefit obligations as of June 30, 1995 are shown below: (In thousands) PERF PEPFF Total pension benefit obligation $5,994,492 $1,113,225 Net assets available for benefits, at cost 5,074,357 1,356,179 Unfunded (assets in excess of) pension benefit obligation $920,135 ($242,954) Net assets available for benefits, at market $5,266,688 $1,445,345 The measurement of the pension benefit obligation is based on an actuarial valuation as of July 1, 1995. 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. Changes in Plan Provisions The 1995 legislative session did not include any benefit improvements which would impact funding costs for the PERF and the PEPFF Changes in Actuarial Assumptions and Methods Potential changes in the actuarial assumptions used for the PEPFF may be made in the future. Results of an experience study for the fund during the four-year period ending June 30, 1994, disclosed (a) retirees are living longer, (b) the expected active member death rate is declining; (c) the trend toward earlier retirement continues; and (d) the pattern of salary increases varies substantially by ages, with a strong merit and seniority component evident at the younger ages. Based on these results, PERA will soon consider revising the actuarial assumptions for retirement age, mortality, payroll growth, and individual salary increases. These changes, if adopted within fiscal year 1996, will significantly impact the July 1, 1996 actuarial valuation of the PEPFF. .1 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 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, 1995. 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, 1995, and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. Note 16 SUMMARY OF SINGLE EMPLOYER AND AGENT MULTIPLE EMPLOYER DEFINED BENEFIT PENSION PLANS ' 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, 1995 is summarized as follows: ' Single Agent - Employer Multiple Employer Fire Relief Police and Fire ' Association - Consolidation Volunteer Fund Division (PFCF) Total Pension benefit obligation $549,936 $5,580,679 $6,130,615 Net assets available for pension benefits 1,040,742 5,318,890 6,359,632 Unfunded (assets in excess of) pension benefit obligation ($490,806) $261,789 ($229,017) 61 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 Note 17 DEFINED BENEFIT PENSION PLAN - POLICE AND FIRE CONSOLIDATION FUND 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). 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, 1995 was $269,258; the City's total payroll was $4,778,188. B. RELATED PARTY INVESTMENTS During 1995, 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. 62 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 The standardized measure of the unfunded pension benefit obligation as of July 1, 1995 (the latest actuarial valuation available) is as follows: Pension benefit obligation Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits Accumulated employee contributions including allocated investment income Employer financed Total pension benefit obligation Net assets available for benefits, at market (cost was not available) Unfunded (assets in excess of) pension benefit obligation Fire Account Police Account Total $1,380,759 $2,389,739 $3,770,498 35,390 200,718 236,108 434,700 1,139,373 1,574,073 1,850,849 3,729,830 5,580,679 1,794,350 3,524,540 5,318,890 $56,499 $205,290 $261,789 The valuation of the pension benefit obligation at June 30, 1995 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 1995 amounts to $51,160 of which $30,696 and $20,464 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 is also required to contribute an additional $28,103 (10.4% of covered payroll) by January 31, 1996 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. 63 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 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, 1995. 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: June 30, 1995 1994 1993 Net assets available for benefits as a percent of the pension benefit obligation (PBO) 95% 88% Not Available Unfunded PBO as a percent of covered payroll 97% 385% Not Available Employer's contribution as a percent of covered payroll * 11.4% 11.4% Not Available *Made in accordance with actuarially determined requirements. 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 For 1995, the bylaws, as amended in September, 1992, provide for monthly pensions of $18.36 per year of service, for up to 30 years of service. Alternatively, members may elect a lump sum payment of $2,639.18 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. 64 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 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 those used to compute the required reserves. During the year ended December 31, 1995, contributions totaling $29,969 (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 1 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, 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 e 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, 1995, the assets in excess of the pension benefit obligation were $490,806, 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 market 1,040,742 t(Assets in excess of) pension benefit obligation ($490,806) 65 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 E. HISTORICAL TREND INFORMATION Three -Year Historical Trend Information Net assets available for benefits as a percentage of pension benefit obligation Unfiinded (assets in excess of) pension benefit obligation, as a percentage of annual covered payroll December 31, 1995 1994 1993 189% N/A 175% 165% N/A N/A 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 1995, 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. Investments are managed by the Plan's trustee under one of four investment options, or a combination thereof. The choice of the investment option(s) is made by the participants. Assets of the Plan are reflected in these statements in an Agency Fund at market value. ,. . CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1995 Note 20 COMMITMENTS AND CONTINGENCIES A. RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; public officials' liability and natural disasters for which the City carries commercial insurance policies. The City retains risk for the deductible portions of the insurance policies and for any exclusions from the insurance policies. These amounts are considered immaterial to the financial statements. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. The City's workers compensation insurance policy is retrospectively rated. With this type of policy, final premiums are determined after loss experience is known. The amount of premium adjustment, if any, is considered immaterial and is not recorded until received or paid. 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 BRA expects such amounts, if any, to be immaterial. D. CONSTRUCTION Significant construction commitments at December 31, 1995 are as follows: Project No. 9229 9312 9503 Note 21 SUBSEQUENT EVENTS Total Contract Remaining Awarded Commitment $371,737 $55,708 82,000 82,000 179,000 179,000 Effective January, 1996 the Housing and Redevelopment Authority (HRA) was reorganized as an Economic Development Authority under State Statutes Chapter 469. 67 CH 68 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS CH 70 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND The Home Rule Charter of the City of Columbia Heights provides in Section 69, Subdivision (c): "A General Fund for the support of such other funds and for the payment of such expenses of the City as the Council may deem proper. Into this fund shall be paid all monies not herein provided to paid (sic) into any other fund." 71 CH 72 CITY OF COLUMBIA HEIGHTS, NIINNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND Statement 6 BALANCE SHEET December 31, 1995 With Comparative Amounts For December 31, 1994 Assets 1995 1994 Cash and investments $3,533,913 $3,510,576 Receivables: Accounts 8,793 6,464 Taxes: Unremitted 32,618 21,309 Delinquent 40,418 79,071 Interest 21,084 20,482 Due from other governmental units 45,927 45,807 Due from other funds 187,329 79,609 Due from component unit - 4,421 Prepayments 22,564 13,264 Total assets $3,892,646 $3,781,003 ' Liabilities and Fund Balance Liabilities: Accounts payable $34,715 $37,413 Accrued salaries and withholdings payable 120,782 115,793 Due to other governmental units 78 76,888 Due to component unit -257 1,430 Deferred revenue 67,668 105,071 Total liabilities 301,422 336,595 Fund balance. Reserved for prepayments 22,564 13,264 Unreserved: Designated for subsequent years' expenditures 10,283 1,003 Designated for working capital 3,143,606 3,430,141 Undesignated 414,771 - Total fund balance 3,591,224 3,444,408 Total liabilities and fund balance $3,892,646 $3,781,003 1 73 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, 1995 With Comparative Actual Amounts For The Year Ended December 31, 1994 Expenditures: General government: 167,231 1995 (93,416) 100,111 Council 218,724 194,236 Over 178,850 Manager 287,544 286,298 (under) 1994 Legal Budget Actual Budget Actual Revenues: 481,729 450,968 (30,761) 457,304 Taxes $2,225,351 $2,204,400 ($20,951) $2,168,081 Licenses and permits 128,450 176,290 47,840 165,696 Intergovernmental 3,127,412 3,131,943 4,531 3,268,867 Charges for services 347,661 281,623 (66,038) 348,160 Fines and forfeitures 100,000 89,138 (10,862) 87,225 Interest 172,500 161,346 (11,154) 127,048 Other revenues: Miscellaneous 22,180 21,331 (849) 63,813 Proceeds from sale of land 500 - (500) 2,800 Total revenues 6,124,054 6,066,071 (57,983) 6,231,690 Expenditures: General government: 167,231 73,815 (93,416) 100,111 Council 218,724 194,236 (24,488) 178,850 Manager 287,544 286,298 (1,246) 269,901 Legal 177,175 177,175 - 195,799 Finance and elections 481,729 450,968 (30,761) 457,304 Assessing 113,304 111,375 (1,929) 106,983 Planning 32,352 23,390 (8,962) 13,092 General government buildings 176,969 151,953 (25,016) 130,614 Total general government 1,487,797 1,395,395 (92,402) 1,352,543 Public safety: Policetanimal/civil defense 1,848,581 1,827,750 (20,831) 1,779,349 Fire 608,245 596,898 (11,347) 679,632 Inspections 126,332 126,332 - 118,006 Total public safety 2,583,158 2,550,980 (32,178) 2,576,987 Public works: Engineering 342,741 342,741 - 271,319 Maintenance 748,756 596,078 (152,678) 570,542 Total public works 1,091,497 938,819 (152,678) 841,861 Other departments: Sanitation 167,231 73,815 (93,416) 100,111 Parks and recreation 1,026,199 938,113 (88,086) 966,561 Contingencies 154,542 791 (153,751) 1,729 Total other departments 1,347,972 1,012,719 (335,253) 1,068,401 Total expenditures 6,510,424 5,897,913 (612,511) 5,839,792 74 I CITY OF COLUMBIA HEIGHTS, DHNNESOTA 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, 1995 With Comparative Actual Amounts For The Year Ended December 31, 1994 Revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers (out) Operating transfers in from component unit Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 3,444,408 3,181,939 $3,591,224 $3,444,408 75 1995 Over (under) 1994 Budget Actual Budget Actual ($386,370) $168,158 $554,528 $391,898 415,126 412,914 (2,212) 450,545 (397,792) (441,087) (43,295) (579,974) - 6,831 6,831 - 17,334 (21,342) (38,676) (129,429) (5369,036) 146,816 $515,852 262,469 3,444,408 3,181,939 $3,591,224 $3,444,408 75 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND Statement 8 SCHEDULE OF REVENUES - BUDGET AND ACTUAL For The Year Ended December 31, 1995 With Comparative Actual Amounts For The Year Ended December 31, 1994 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 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 76 1995 Over (under) 1994 Budget Actual Budget Actual $2,218,351 $2,195,223 ($23,128) $2,157,231 7,000 9,177 2,177 10,850 2,225,351 2,204,400 (20,951) 2,168,081 78,100 87,920 9,820 94,459 50,350 88,370 38,020 71,237 128,450 176,290 47,840 165,696 4,900 5,125 225 3,510 - 960 960 3,290 2,052,835 2,052,835 - 2,025,418 978,510 978,510 - 964,991 7,000 6,817 (183) 7,225 32,654 32,654 - 144,482 - - - 54,842 18,060 15,360 (2,700) 18,060 - 4,890 4,890 13,382 33,453 34,792 1,339 33,667 3,127,412 3,131,943 4,531 3,268,867 15,230 1,920 (13,310) 38,671 142,816 134,742 (8,074) 135,407 38,415 11,498 (26,917) 21,710 151,200 133,463 (17,737) 152,372 347,661 281,623 (66,038) 348,160 100,000 89,138 (10,862) 87,225 100,000 89,138 (10,862) 87,225 172,500 161,346 (11,154) 127,048 5,680 3,590 (2,090) 5,383 500 - (500) 2,800 16,500 17,741 1,241 58,430 195,180 182,677 (12,503) 193,661 $6,124,054 $6,066,071 ($57,983) $6,231,690 CITY OF COLUMBIA HEIGHT$ MINNESOTA GENERAL FUND SCBEDULE OF EXPENDTTURFS - BUDGET AND ACTUAL For The Year Ended December 31, 1995 With Comparative Actual Amounts For The Year Ended December 31, 1994 Statement 9 1995 Actual Supplies Over Personal and Capital (under) 1994 Budget Services Services Outlay Total Budget Actual Expenditures: General government: Council and manager. Council $218,724 $95,824 $98,412 $ - $194,236 ($24,488) $178,850 Manager 287,544 252-936 32,720 642 286,298 (1,246) 269,901 Legal 177,175 177,175 177,175 195,799 Total council and manager 683,443 348,760 308,307 642 657,709 (25,734) 644,550 Administrative services: Finance 453,531 379,337 43,440 940 423,717 (29,814) 434,026 Elections 28,198 21,450 5,017 784 27,251 (947) 23,278 Assessing 113,304 38,137 73,238 - 111,375 (1,929) 106,983 Planning 32,352 21,492 1,898 - 23,390 (8,962) 13,092 General government buildings 176,969 4,683 139,005 8,265 151,953 (25,016) 130,614 Total administrative services 804 ,354 465,099 262,598 9,989 737,686 (66, 668) 707,993 Total general government 1,487,797 813,859 570,905 10,631 1,395,395 (92,402) 1,352,543 Public safety. Police 1,810,164 1,622,160 163,276 6,698 1,792,134 (18,030) 1,742,074 Fire 608,245 542,919 53,445 534 596,898 (11,347) 679,632 inspections 126,332 113,239 13,093 - 126,332 - 118,006 Civil defense 27,287 15,576 11,007 26,583 (704) 24,226 Animal control 11,130 - 9,033 - 9,033 (2,097) 13,049 Total public safety 2,583,158 2,293,894 249,854 7,232 2,550,980 (32,178) 2,576,987 Public works, highways and streets: Engineering 342,741 227,270 113,120 2,351 342,741 - 271,319 Streets 566,634 245,979 185,691 12,696 444,366 (122,268) 422,266 Street lighting 135,691 2,162 106,581 - 108,743 (26,948) 105,211 Trac signs/signals ffi 46,431 28,568 13,206 1,195 42,969 _ (3,462) 43,065 Total public works, highways and streets 1,091,497 503,979 418,598 16,242 938,819 1( 52,678) 841,861 Other departments: Sanitation 167,231 34,400 38,995 420 73,815 (93,416) 100,111 Parks and recreation 1,026,199 612,431 316,155 9,527 938,113 (88,086) 966,561 Contingencies 154,542 - 791 - 791 153,751 1,729 Total other departments 1,347,972 646,831 355,941 9,947 1,012,719_ (335,253) 1,068,401 Total expenditures $6,510,424 $4,258,563 $1,595,298 544,052 $5,897,913 5612,511 $5,839,792 77 CITY OF COLUMBIA HEIGHTS, MPMSOTA 78 t I 1 L SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources which tfinance specified activities as required by law or administrative regulation. Municipal State Aid Fund - maintained according to State Statute for maintenance and construction of streets or municipal state aid systems. Cable Television Fund - established to account for revenues and expenditures associated with cable television franchise. Paratransit Fund - established by agreement with the Minnesota Department of Transportation to account for the receipt of State grants and rider fees and expenditures for service. D.A.R.E. Program Fund - established to account for revenues and expenditures of D.A.R.E. (Drug Awareness) Program. Library Fund - established in 1993 to account for revenues and expenditures of the library. Project Pride Fund - established in 1992 to ensure that every 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. Recreation Contributed Projects Fund - established to monitor contributions for recreational activities and related expenditures. Contributed Projects Fund - established to monitor contributions and related expenditures. Parking Ramp Fund - established to account for revenues from parking ramp assessment that are to be used for redevelopment. 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. FAST COPS Fund - established to account for revenues and expenditures associated with a federal grant received for the hiring of one additional police officer. 79 rl CITY OF COLUMBIA HEIGHTS, N ZWESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1995 With Comparative Totals For December 31, 1994 Municipal I State Cable D.A -RE. 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 Designated for working capital Undesignated Total fund balance Total liabilities and fund balance 80 5 = $334-227 $45,656 $1,067 $250,477 $1 =805 18,967 - - - - - 3,074 481 - 1,855 - 102,135 - 6,087 - - - 126 - - 761 - $102,135 $356,394 $52,224 $1,067 $253,093 $1,805 $4,228 $1,901 $4,243 $ - $392 $ - 733 - - - 6,822 - 15,801 - - - - - - - - - 326 - 126,005 - - - - - 146,767 1,901 .4,243 0 7,540 0 - 126 - - 761 - - - - - 198,183 1 - (44,632) 354,367 47,981 1,067 46,609 1,805 (44,632) 354,493 47,981 1,067 245,553 1,805 $102,135 $356,394 $52,224 $1,067 $253,093 $1,805 Statement 10 Recreation Federal Contributed Contributed Parking Confiscated Housing Fast Cops Totals Pol. Grant Projects Projects Ramp Property Mortgage Grant 1995 1994 $55,383 $8,821 $12,399 $207,582 $2,928 $21,182 $63,172 $1,004,699 $793,560 = = = _ = = = 18,967 17,303 - - - 1,875 - 191 - 7,476 3,794 23,359 - - 7,005 138,586 77,715 = _ 408,027 _ 446,352 854,379 854,379 - - - - - - - 887 128 $78,742 $8,821 $12,399 $617,484 $2,928 $467,725 $70,177 $2,024,994 $1,746,879 $ - $ $ $ - $ - $ $ - $10,764 $15,279 2,302 _ _ _ 820 10,677 8,743 - - - - - - - 15,801 8,798 326 - - - - - - - 126,005 = 180 2,302 0 0 0 0 0 820 163,573 33,000 - - - - - - - 887 128 - - - - - 467,725 - 467,725 453,478 - - - - - - - - 6,376 - - - - - - - 198,183 - 76,440 8,821 12,399 617,484 2,928 - 69,357 1,194,626 1,253,897 76,440 8,821 12,399 617,484 2,928 467,725 69,357 1,861,421 1,713,879 $78,742 $8,821 $12,399 $617,484 $2,928 $467,725 $70,177 $2,024,994 $1,746,879 81 CITY OF COLUMBIA HEIGHTS, NWgNESSOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1995 nth Comparative Totals For The Year Ended December 31, 1994 ` al �U 1 a� v a Municipal a ' �, b J �U State Cable D.A.R.E. Project Aid Television Paratransit Program Library Pride Revenues: Taxes Special assessments Intergovernmental Fees/program revenues Interest Other revenues: Miscellaneous Contributions Total revenues Expenditures: Parks and recreation: Supplies Other services and charges Capital outlay Other: Personal services Supplies Other services and charges Capital outlay Total expenditures Revenues over (under) expenditures Other financing sources (uses): $ - $ - $ - $ - $390,348 $ - 541,100 - 32,052 - - - - 70,409 9,135 - 16,392 - 23,526 3,677 - 14,198 - 13,252 1,815 - - - - - - 1,680 - 380 554,352 95,750. 44,864 1,680 420,938 380 970 907 63,721 505 - - 274,941 - 8,644 900 380 2,643 63,396 - 187,263 11,322 47,189 3,180 54,525 - 370,945 14,082 - - 13,011 - 630,573 26,809 47,569 5,823 405,873 1,877 19,489 (7,574) (76,221) 68,941 (2,705) 4,143 15,065 (1,497) Operating transfers in 533 - - 3,500 200,000 - Operating transfers (out) (29,100) (49,452) (4,869) - (6,664) - Total other financing sources (uses) (28,567) (49,452) (4,869) 3,500 193,336 0 Net increase (decrease) in fund balance (104,788) 19,489 (7,574) (643) 208,401 (1,497) Fund balance (deficit) - January 1 60,156 335,004 55,555 1,710 37,152 3,302 Fund balance (deficit) - December 31 ($44,632) $354,493 $47,981 Z�� $1,067 $245,553 $1,805 ®� 82 le Statement 11 I k� i k Recreation 3 (U a ul '� e Federal Contributed Contributed Parldng Confiscated Housing Fast Cops Totals Police Grant Projects Projects Ramp Property Mortgage Grant 1995 1994 $ _ $ _ $ _ $ _ $ _ $ _ $ _ $390,348 $390,348 - 586,129 43,062 - 7,005 623,219 433,552 6,087 _ _ = = 102,023 99,249 - - - 14,352 - 1,464 - 57,217 29,815 - 172 - - 306 15,545 15,471 - 35,771 9,247 - - _ _ 47,078 72,525 43,062 42,030 9,247 14,352 306 1,464 7,005 1,235,430 1,627,089 - 25,166 - - - - - 26,136 49,747 - 12,657 13,564 18,263 = = = = = 2,610 86,394 - - 14,011 439,572 379,299 = 11,498 = _ 87,461 81,435 - - 473 - - - - 303,952 173,097 - - 9,476 - - - - 407,514 180,179 86,394 37,823 21,447 0 0 0 14,011 1,278,199 884,630 (43,332) 4,207 (12,200) 14,352 306 1,464 ,006 (42,769) 742,459 _ _ _ _ _ - 76,363 280,396 153,223 - - - (90,085) (475,611) 0 0 0 0 0 0 76,363 190,311 (322,388) (43,332) 4,207 (12,200) 14,352 306 1,464 69,357 147,542 420,071 119,772 4,614 24,599 603,132 2,622 466,261 - 1,713,879 1,293,808 $76,440 $8,821 $12,399 $617,484 $2,928 $467,725 $69,357 $1,861,421 $1,713,879 1 83 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - MUNICIPAL STATE AID STREET FUND Statenent 12 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1995 With Comparative Actual Amounts For The Year Ended December 31, 1994 Revenues: Intergovernmental: State of Minnesota: Maintenance Construction Other revenues: Miscellaneous Total revenues Expenditures: Maintenance: Personal services Supplies Other services and charges Capital outlay Construction: Personal services Supplies Other services and charges Capital outlay Total expenditures Revenues over (under) expenditures Other financing sources (uses): Operating transfers in - Construction Operating transfers (out): Maintenance Construction Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance (deficit) - January 1 Fund balance (deficit) - December 31 84 1995 Over (under) 1994 Budget Actual Budget Actual $115,000 $103,995 ($11,005) $146,409 278,482 437,105 158,623 201,400 - 13,252 13,252 9,288 393,482 554,352 160,870 357,097 11,200 15,954 4,754 6,787 2,100 8,242 6,142 273 25,294 174,454 149,160 19,290 23,800 16,230 (7,570) - - 47,767 47,767 44,432 - 402 402 209 - 12,809 12,809 12,519 240,000 354,715 114,715 176,269 302,394 630,573 328,179 259,779 91,088 (76,221) (167,309) 97,318 533 533 - (29,100) (29,100) - (93,369) (25,065) - 25,065 (23,150) (54,165) (28,567) 25,598 (116,519) $36,923 (104,788) ($141,711) (19,201) 60,156 79,357 , ($44,632) $60,156 i CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - CABLE TELEVISION FUND Statement 13 t STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1995 With Comparative Actual Amounts For The Year Ended December 31, 1994 1995 Over (under) 1994 Budget Actual Budget Actual Revenues: Franchise fees $74,000 $70,409 ($3,591) $71,756 Interest 20,000 23,526 3,526 15,901 Other revenues: Miscellaneous 3,900 1,815 (2,085) 5,291 Total revenues 97,900 95,750 (2,150) 92,948 Expenditures: Personal services 1,015 505 (510) 845 Supplies 2,780 900 (1,880) 896 Other services and charges 37,032 11,322 (25,710) 32,245 Capital outlay 19,515 14,082 (5,433) - Total expenditures 60,342 26,809 (33,533) 33,986 Revenues over expenditures 37,558 68,941 31,383 58,962 Other financing sources (uses): Operating transfers (out) (49,452) (49,452) - (49,102) Net increase (decrease) in fund balance ($11,894) 19,489 $31,383 9,860 Fund balance - January 1 335,004 325,144 Fund balance - December 31 $354,493 $335,004 85 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - PARATRANSTT FUND Statement 14 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1995 With Comparative Actual Amounts For The Year Ended December 31, 1994 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 (out) Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 86 1995 380 (1,120) 456 Over 81,028 47,189 (under) 1994 Budget Actual Budget Actual (34,959) $61,995 $32,052 ($29,943) $42,573 15,000 9,135 (5,865) 11,695 - 3,677 3,677 2,272 - - 20 76,995 44,864 (32,131) 56,560 1,500 380 (1,120) 456 81,028 47,189 (33,839) 49,675 82,528 47,569 (34,959) 50,131 (5,533) (2,705) 2,828 6,429 (7,081) (4,869) 2,212 (3,393) (7,081) (4,869) 2,212 (3,393) ($12,614) (7,574) $5,040 3,036 55,555 52,519 $47,981 $55,555 r� 1 1 CITY OF COLUMBIA HEIGHTS, M WKSOTA 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, 1995 With Comparative Actual Amounts For The Year Ended December 31, 1994 1 87 1995 Over (under) 1994 Budget Actual Budget Actual Revenues: Interest $ - $ - $ - $2,650 Other revenues: Miscellaneous - - - 270 Contributions 2,400 1,680 (720) 534 Total revenues 2,400 1,680 (720) 3,454 Expenditures: Personal services - - - 1,896 Supplies 2,400 2,643 243 3,505 Other services and charges 3,381 3,180 (201) 1,670 Total expenditures 5,781 5,823 42 7,071 ' Revenues over (under) expenditures (3,381) (4,143) (762) (3,617) Other financing sources: Operating transfers in 3,500 3,500 - 2,600 Total other financing sources 3,500 3,500 0 2,600 Net increase (decrease) in fund balance $119 (643) ($762) (1,017) Fund balance - January 1 1,710 2,727 Fund balance - December 31 $ 1,067 $ 1,710 1 87 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, 1995 J1 o With Comparative Actual Amounts For The Year Ended December 31, 1994 �1 Revenues: Taxes Charges for services Interest 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 88 1995 Over (under) 1994 Budget Actual Budget Actual $390,348 $390,348 $ - $390,348 19,100 16,392 (2,708) 15,798 - 14,198 14,198 - - - - 55 409,448 420,938 11,490 406,201 271,976 274,941 2,965 273,028 69,175 63,396 (5,779) 67,542 63,564 54,525 (9,039) 51,590 13,675 13,011 (664) 3,661 418,390 405,873 (12,517) 395,821 (8,942) 15,065 24,007 10,380 - 200,000 200,000 7,500 (6,664) (6,664) - (6,597) (6,664) 193,336 200,000 903 ($15,606) 208,401 $224,007 11,283 37,152 25,869 $245,553 $37,152 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, 1995 ' With Comparative Actual Amounts For The Year Ended December 31, 1994 1995 Over (Under) 1994 ' Budget Actual Budget Actual Revenues: Intergovernmental $ - $ - $ - $30,000 Total revenues 0 0 0 30,000 Expenditures: ' Personal services - - - 31,037 Total expenditures 0 0 0 31,037 ' Revenues over (under) expenditures 0 0 0 (1,037) Other financing sources: Operating transfers in - - - 7,500 Net increase (decrease) in fund balance $0 0 $0 6,463 Fund balance (deficit) - January 1 - (6,463) Fund balance (deficit) - December 31 $0 $0 89 CITY OF COLUMBIA HEIGHTS, bIINNESOTA 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, 1995 With Comparative Actual Amounts For The Year Ended December 31, 1994 Revenues: Fees/program revenues Interest Other revenues: Contributions Total revenues Expenditures: Supplies Other services and charges Total expenditures Net increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 a 3,302 $1,805 3,428 $3,302 1995 Over (Under) 1994 Budget Actual Budget Actual - - - - 174 500 380 (120) - 500 380 (120) 174 850 970 120 - 1,000 907 (93) 300 1,850 1,877 27 300 ($1,350) (1,497) ($147) (126) 3,302 $1,805 3,428 $3,302 CITY OF COLUMBIA HEIGHTS, MMESOTA 'SPECIAL REVENUE FUND - FEDERAL POLICE GRANT Statement 19 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ' For The Year Ended December 31, 1995 With Comparative Actual Amounts For The Year Ended December 31, 1994 ' 1995 Over (Under) 1994 ' Budget Actual Budget Actual Revenues: Federal grant $49,285 $43,062 (6,223) $10,520 ' Total revenues 49,285 43,062 (6,223) 10,520 Expenditures: Personal services 97,954 86,394 (11,560) 21,274 Supplies 350 - (350) 2,605 Other services and charges 265 - (265) 2,492 Total expenditures 98,569 86,394 (12,175) 26,371 Revenues over (under) expenditures ($49,284) (43,332) 5,952 (15,851) ' Other financing sources: Operating transfers in - - - 135,623 ' Net increase (decrease) in fund balance ($49,284) (43,332) $5,952 119,772 ' Fund balance - January 1 119,772 - Fund balance - December 31 $76,440 $119,772 1 91 CPTY 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, 1995 With Comparative Amounts For The Year Ended December 31, 1994 Revenues: Fees /program revenues Contributions Miscellaneous Total revenues Expenditures: Supplies Other services and charges Capital outlay Total expenditures Revenues over (under) expenditures Fund balance - January 1 Fund balance - December 31 92 1995 1994 $6,087 $ - 35,771 55,647 172 - 42,030 55,647 25,166 49,747 12,657 17,963 - 2,610 37,823 70,320 4,207 (14,673) 4,614 19,287 $8,821 $4,614 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - CONTRIBUTED PROJECTS Statement 21 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1995 With Comparative Amounts For The Year Ended December 31, 1994 93 1995 1994 Revenues: Contributions $9,247 $16,344 Expenditures: Supplies 11,498 5,949 Other services and charges 473 3,600 Capital outlay 9,476 - Total expenditures 21,447 9,549 Revenues over (under) expenditures (12,200) 6,795 Other financing sources (uses): Operating transfers (out) - - Net increase (decrease) in fund balance (12,200) 6,795 Fund balance - January 1 24,599 17,804 Fund balance - December 31 $12,399 $24,599 93 CITY OF COLUMBIA HEIGHTS, IIHNNESOTA SPECIAL REVENUE FUND - PARKING RAMP Statement 22 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1995 With Comparative Amounts For The Year Ended December 31, 1994 Other financing source (uses): Operating transfers (out) 1995 1994 Revenues: Fund balance - January 1 603,132 312,661 Special assessments $ - $586,129 Interest 14,352 4,342 Total revenues 14,352 590,471 Expenditures - - Revenues over expenditures 14,352 590,471 Other financing source (uses): Operating transfers (out) - (300,000) Net increase in fund balance 14,352 290,471 Fund balance - January 1 603,132 312,661 Fund balance - December 31 $617,484 $603,132 94 CITY OF COLUMBIA HEIGHTS, MINNESOTA REVENUE FUND - CONFISCATED PROPERTY Statement 23 'SPECIAL STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE The Year Ended December 31, 1995 'For With Comparative Amounts For The Year Ended December 31, 1994 1995 1994 Revenues: Confiscated property $306 $547 Expenditures: Other services and charges - 16 Capital outlay 249 Total expenditures 0 265 Revenues over expenditures 306 282 Fund balance - January 1 2,622 2,340 Fund balance - December 31 $2,928 $2,622 95 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - HOUSING MORTGAGE Statement 24 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1995 With Comparative Amounts For The Year Ended December 31, 1994 Revenues: Interest Other revenues: Miscellaneous Total revenues Expenditures Revenues over expenditures Fund balance - January 1 Fund balance - December 31 .- 1995 1994 $1,464 $7,126 1,464 7,126 1,464 7,126 466,261 459,135 $467,725 $466,261 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - FAST COPS GRANT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1995 Statement 25 1995 Revenues: Federal grant $7,005 Expenditures: Personal services 14,011 Supplies - Other services and charges - Total expenditures 14,011 Revenues over (under) expenditures (7,006) Other financing sources: Operating transfers in 76,363 Net increase in fund balance 69,357 Fund balance - January 1 Fund balance - December 31 $69,357 97 CH 0 CITY OF COLUMBIA HEIGHTS, M MUSOTA 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. . . CH 100 CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA SERVICE FUNDS Statement 26 'DEBT COMBR41NG BALANCE SHEET December 31, 1995 With Comparative Totals For December 31, 1994 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 1995 1994 Assets Cash and investments $2,270,042 $ - $ - $ - $ - $2,270,042 $2,032,664 Cash and investments held in escrow - - - - - - - Taxes: Unrem itted 4,900 - - - - 4,900 - Delinquent 140,218 - - - - 140,218 316,901 Interest 13,513 - - - - 13,513 9,228 ' Total assets $2,428,673 $0 $0 $0 $0 $2,428,673 $2,358,793 Liabilities and Fund Balance Liabilities: Due to other governmental units $11,097 $ $ $ $ $11,097 $15,989 Due to other funds 854,379 = = 854,379 854,379 Deferred revenue: Property taxes - delinquent 140,218 - - - - 140,218 316,901 ' Total liabilities 1,005,694 0 0 0 0 1,005,694 1,187,269 Fund balance: Unreserved: ' Designated for debt service 1,422,979 - - - - 1,422,979 1,171,524 Total liabilities and fund balance 1 $2,428,673 $0 $0 $0 $0 $2,428,673 $2,358,793 101 CITY OF COLUMBIA BEIGHTS, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1995 With Comparative Totals For The Year Ended December 31, 1994 Tax Tax Increment Increment Refunding Bonds Bonds of 1987 Revenues: Tax increments $1,572,680 $ - Special assessments - - Interest 103,408 - Other revenues - - Total revenues 1,676,088 0 Expenditures: Debt service: Principal retirement Interest and fiscal charges Miscellaneous .. Total expenditures Revenues over (under) expenditures Other financing sources (uses): 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 Fund balance - December 31 102 11,672 11,672 1,664,416 (1,412,961) (1,412,961) 251,455 1,171,524 $1,422,979 35,000 1,155 36,155 (36,155) 36,155 36,155 0 $0 103 Statement 27 4J�-( Capital ��� Tax 50 Tax ' Appreciation Increment Increment Bonds Refunding Refunding Totals of 1990 Bonds of 1991 Bonds of 1993 1995 1994 ' $ - $ - $ - $1,572,680 $1,116,034 103,408 232,588 = = = 104,611 0 0 0 1,676,088 1,453,233 ' 835,000 185,000 1,055,000 1,015,000 = 333,411 23,395 357,961 650,720 - - - 11,672 23,076 0 1,168,411 208,395 1,424,633 1,688,796 0 (1,168,411) (208,395) 251,455 (235,563) - - - - (6,515,000) 1,168,411 208,395 1,412,961 7,999,684 ' = (1,412,961) (7,999,684) 0 1,168,411 208,395 0 (6,515,000) ' 0 0 0 251,455 (6,750,563) - - - 1,171,524 7,922,087 $0 $0 $0 $1,422,979 $1,171,524 103 CH 104 CITY OF COLUMBIAHEIGHTS, MMESOTA 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. 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. 105 CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1995 With Comparative Totals For December 31, 1994 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 1. 497 - $112,533 $18,788 $51,727 $19,876 $88,111 $ - $1,278 $ - 88,111 0 1,278 0 24,422 Water Downtown 19,876 Capital Surface Parking Capital Improvement Management Maintenance Improvement Fund 401 Fund 403 Fund 405 Fund 408 $112,533 $18,788 $51,230 $19,876 497 - $112,533 $18,788 $51,727 $19,876 $88,111 $ - $1,278 $ - 88,111 0 1,278 0 24,422 18,788 50,449 19,876 24,422 18,788 50,449 19,876 $112,533 $18,788 $51,727 $19,876 Statement 28 ' 1,151 = = = _ = 1,151 2,300 224,603 224,603 449,000 - - - - - 17,040 17,040 116,234 (1,051,219) 260,776 270,020 261,940 677,736 3,242,309 3,775,097 3,373,547 (825,465) 260,776 270,020 261,940 677,736 3,259,349 4,017,891 Capital ' $255,933 $261,054 $270,560 $530,893 $677,736 $3,266,773 $5,465,873 $5,495,142 ' 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 1995 1994 1 $500 $258,915 $267,767 $260,031 $672,437 $3,237,699 $4,899,776 $4,605,478 ' 18,000 - - - - - 18,000 2,545 - - - 550 - - 550 1,348 1 - - - 82,630 - - 82,630 60,229 186,323 186,323 304,970 - 2,139 2,793 1,359 5,299 29,074 41,161 34,710 11,679 - - - 11,679 10,530 _ 13,611 - - - - - - - 10,421 1,151 1,151 2,300 ' 224,603 = = = = = 224,603 449,000 ' $255,933 $261,054 $270,560 $530,893 $677,736 $3,266,773 $5,465,873 $5,495,142 1 $18 $78 $ - $ - $ - $7,424 $96,909 $9,982 15 - - 15 2,139 ' - 200 540 = = = 740 1,771 36,000 - - - - - 36,000 72,000 1,211 1,043,595 - - - - - 1,043,595 1,101,640 645 - - 268,953 - - 269,598 365,199 1,125 - - - - - 1,125 119 1,081,398 278 540 268,953 0 7,424 1,447,982 1,554,061 ' 1,151 = = = _ = 1,151 2,300 224,603 224,603 449,000 - - - - - 17,040 17,040 116,234 (1,051,219) 260,776 270,020 261,940 677,736 3,242,309 3,775,097 3,373,547 (825,465) 260,776 270,020 261,940 677,736 3,259,349 4,017,891 3,941,081 ' $255,933 $261,054 $270,560 $530,893 $677,736 $3,266,773 $5,465,873 $5,495,142 107 CITY OF COLUMBIA HEIGHTS, M"gNESOTA CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1995 With Comparative Totals For The Year Ended December 31, 1994 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) Operating transfers in from component unit Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance (deficit) - January 1 Fund balance (deficit) - December 31 108 169,649 - - - 169,649 0 3,802 0 223,028 Water Downtown - Capital Surface Parldng Capital Improvement Management Maintenance Improvement Fund 401 Fund 403 Fund 405 Fund 408 58,840 - - 3,802 - 169,649 - - - 169,649 0 3,802 0 223,028 1,342 9,222 - (53,379) (1,342) (5,420) 0 , _ 90,495 58,840 - - - 149,335 0 0 0 95,956 (1,342) (5,420) 0 (71,534) 20,130 55,869 19,876 $24,422 $18,788 $50,449 $19,876 Statement 29 � V 109 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 1995 1994 $ - $ - $ - $122,328 $ - $ - $122,328 $303,233 219 16,370 21,377 10,402 40,553 222,482 315,205 215,303 36,455 - 1,319 128,982 - 11,100 347,505 314,386 _ 120,000 ' 93, 483 - - 93,483 79,715 10 - - - - - 10 6,041 130,167 16,370 22,696 261,712 40,553 233,582 878,531 1,038,678 510,972 75,344 72,248 61,381 6,658 313,768 1,273,963 1,549,227 (380,805) (58,974) (49,552) 200,331 33,895 (80,186) (395,432) (510,549) ' 18,295 - 100,000 144,100 352,890 711,914 = = (60,821) (60,821) (60,009) 121,333 - - - - - 180,173 - ' 139,628 0 0 (60,821) 100,000 144,100 472,242 651,905 (241,177) (58,974) (49,552) 139,510 133,895 63,914 76,810 141,356 ' (584,288) 319,750 319,572 122,430 543,841 3,195,435 3,941,081 3,799,725 ($825,465) $260,776 $270,020 $261,940 $677,736 $3,259,349 $4,017,891 $3,941,081 109 t CITY OF COLUMBIA HEIGHTS,I4IINNESOTA ' 110 1 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. 111 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET December 31, 1995 With Comparative Totals For December 31, 1994 Assets Current assets: Cash and cash equivalents Receivables: Accounts Interest Due from other governmental units, current portion Due from other funds Prepayments Inventory, at cost Total current assets Long -term assets: Due from other governmental units, net of current portion Total long -term assets Fixed assets: Land Buildings Improvements other than buildings Machinery and equipment Construction in process Total Less: Accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Accrued salaries and withholdings payable Contracts payable - retained percentage Due to other governmental units Deposits Total current liabilities Fund equity: Contributed capital: Property owners /customers Federal funds Total contributed capital Retained earnings: Reserved for capital replacement/construction Unreserved Total retained earnings Total fund equity Total liabilities and fund equity 112 Statement 30 1 Totals Water Sewer Refuse Liquor 1995 1994 ' $1,029,672 $1,390,183 $728,666 $604,873 $3,753,394 $3,404,939 275,406 257,702 285,306 - 818,414 763,696 9,920 12,674 6,764 5,412 34,770 27,730 - 25,051 37,615 2,548 65,214 60,121 - 813,271 - 169,000 982,271 1,022,031 183 66,339 - - 66,522 58,031 2,234 - - 606,261 608,495 609,498 1,317,415 2,565,220 1,058,351 1,388,094 6,329,080 5,946,046 - 99,149 - - 99,149 117,990 0 99,149 0 0 99,149 117,990 45,223 36,586 - 4,360 86,169 94,860 250,325 47,843 - 182,681 480,849 525,142 2,877,579 303,420 3,424,405 481,704 2,890 7,538 104,538 361,842 6,409,412 1,154,504 6,073,502 1,123,983 ' 11,539 - - - 11,539 213,852 3,488,086 3,990,538 10,428 653,421 8,142,473 8,031,339 1,801,915 2,154,639 5,537 408,799 4,370,890 4,174,603 ' 1,686,171 1,835,899 4,891 244,622 3,771,583 3,856,736 $3,003,586 $4,500,268 $1,063,242 $1,632,716 $10,199,812 $9,920,772 $3,762 $1,417 $31 $290,144 $295,354 $326,585 18,352 13,770 - 52,205 84,327 79,277 - - - - - 5,577 54,106 52,749 - 63,393 170,248 163,931 3,744 - - - 3,744 - 79,964 67,936 31 405,742 553,673 575,370 324,925 590,267 - - 915,192 980,421 453,000 - - - 453,000 453,000 ' 777,925 590,267 0 0 1,368,192 1,433,421 525,394 2,058,027 - - 2,583,421 2,736,803 1,620,303 1,784,038 1,063,211 1,226,974 5,694,526 5,175,178 2,145,697 3,842,065 1,063,211 1,226,974 8,277,947 7,911,981 , 2,923,622 4,432,332 1,063,211 1,226,974 9,646,139 9,345,402 $3,003,586 $4,500,268 $1,063,242 $1,632,716 $10,199,812 $9,920,772 I CITY OF COLUMBIA HEIGHTS, MINNESOTA ENTERPRISE FUNDS Statement 31 COMBINING STAT04ENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1995 With Comparative Totals For The Year Ended December 31, 1994 Operating expenses: Totals Water Sewer Refuse Liquor 1995 1994 Operating revenues: Distribution 386,137 228,927 - - 615,064 Charges for services: Administration 7,478 7,460 10,645 - 25,583 Customer service $16,802 $ $ $ - $16,802 $23,321 Penalties 28,460 _ = 272,891 28,460 29,055 Sewer service charges - 1,061,075 - - 1,061,075 982,985 Refuse service charges - - 1,293,894 - 1,293,894 1,323,832 Charges for sales: Operating expense - - - 785,752 785,752 Water 1,113,842 - - - 1,113,842 1,079,641 Meter 4,766 - - - 4,766 2,739 Liquor - 75,242 - 1,678,742 1,678,742 1,607,461 Beer Credit for depreciation:on contributed assets _ 38,935 2,820,926 2,820,926 2,705,284 Wine - - - 521,223 521,223 493,997 Other - - - 669,134 669,134 710,515 Total operating revenues 1,163,870 1,061,075 1,293,894 5,690,025 9,208,864 8,958,830 Operating expenses: Cost of sales and services 622,368 723,413 - - 1,345,781 1,293,142 Distribution 386,137 228,927 - - 615,064 534,273 Administration 7,478 7,460 10,645 - 25,583 31,115 Collection and disposal - - 878,015 - 878,015 858,789 Recycling 75,421 150,828 272,891 28,586 272,891 263,752 Hazardous waste - - 1,608 - 1,608 2,759 Cost of goods sold - - - 4,564,629 4,564,629 4,475,098 Operating expense - - - 785,752 785,752 733,126 Depreciation 72,645 93,024 1,218 45,065 211,952 247,750 Total operating expenses 1,088,628 1,052,824 1,164,377 5,395,446 8,701,275 8,439,804 ' Net income (loss) from operations 75,242 8,251 129,517 294,579 507,589 519,026 Nonoperating revenues (expenses): Interest income 75,912 133,141 51,762 41,412 302,227 211,456 Intergovernmental 64 ,131 64,131 46,983 Miscellaneous revenues 6,619 70,896 10,656 4,958 93,129 7,081 Miscellaneous expenses (7,110) (53,209) - (17,784) (78,103) 26,810 Total nonoperating revenues (expenses) 75,421 150,828 126,549 28,586 381,384 238,710 Net income before operating transfers 150,663 159,079 256,066 323,165 888,973 757,736 Operating transfers: Operating transfers in 36,086 349,424 - - 385,510 149,621 Operating transfers (out) (107,542) (420,880) (107,721) (337,603) (973,746) 777,15 Total operating transfers (71,456) (71,456) (107,721) (337,603) (588,236) 627,534 Net income (loss) 79,207 87,623 148,345 (14,438) 300,737 130,202 Credit for depreciation:on contributed assets 26,294 38,935 - - 65,229 65,229 Retained earnings - January 1 2,040,196 3,715,507 914,866 1,241,412 7,911,981 7,716,550 Retained earnings - December 31 $2,145,697 $3,842,065 $1,063,211 $1,226,974 $8,277,947 $7,911,981 1 113 CITY OF COLUM 31fA HEIGHTS, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 1995 With Comparative Totals For the Year Ended December 31, 1994 Cash flows from operating activities: Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues Miscellaneous expenses Net cash flows from operating activities Cash flows from noncapital financing activities: Operating transfers in from other funds Operating transfers (out) to other funds Net cash flows from noncapital financing activities Cash flows from capital and related financing activities: t Statement 32 I Totals Water Sewer Refuse Liquor 1995 1994 $1,140,377 $1,036,706 $1,284,817 $5,692,246 $9,154,146 $8,839,644 (775,692) (799,455) (1,178,006) (4 ,891,989) (7,645,142) (7,454,452) (235,638) (119,590) - (464,630) (819,858) (727,279) 6,619 70,896 74,787 4,958 157,260 54,712 (7,110) (53,209) - (17,784) (78,103) (26,810) 128,556 135,348 181,598 322,801 768,303 685,815 36,086 349,424 - - 385,510 149,621 (107,542) (420,880) (107,721) (337,603) (973,746) (777,155) (71,456) (71,456) (107,721) (337,603) (588,236) (627,534) Acquisition of fixed assets (55,004) (124,952) (1,931) (22,697) (204,584) (90,858) Disposition of fixed assets - - - 77,785 77,785 93,024 Net cash flows from capital and related financing activities (55,004) (124,952) (1,931) 55,088 (126,799) (90,858) Cash flows from investing activities: (54,718) 47,775 - 28,179 (14,209) (222) Interest received on investments 73,199 131,447 49,720 40,821 295,187 167,615 Net cash flows from investing activities 73,199 131,447 49,720 40,821 295,187 167,615 Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues 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 inventory, at cost Increase (decrease) in accounts payable Increase (decrease) in accrued salaries and withholdings payable Increase (decrease) in due to other governmental units Increase (decrease) in deposits Total adjustments Net cash flows from operating activities 114 75,295 70,387 121,666 81,107. 348,455 135,038 954,377 1,319,796 607,000 523,766 3,404,939 3,269,901 $1,029,672 $1, 390 ,183 $728,666 $604,873 $3,753,394 $3,404,939 $75,242 $8,251 $129,517 $294,579 $507,589 $519,026 6,619 70,896 74,787 4,958 157,260 54,712 (7,110) (53,209) - (17,784) (78,103) (26,810) 72,645 93,024 1,218 45,065 211,952 247,750 (23,493) (24,369) (9,077) 2,221 (54,718) 47,775 - 28,179 (14,209) (222) 13,748 114,039 - 39,760 - - 39,760 (281,000) 96 (8,722) - 135 (8,491) (57,846) (584) - - 1,587 1,003 (30,003) 842 (16,874) (638) (20,138) (36,808) (17,141) (1,178) (1,588) 7,816 5,050 17,498 1,733 - - 4,584 6,317 97,815 3,744 - - - 3,744 - 53,314 127,097 52,081 28,222 260,714 166,789 $128,556 $135,348 $181,598 $322,801 $768,303 $685,815 CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UTILITY FUND BALANCE SHEET December 31, 1995 With Comparative Totals For December 31, 1994 Statement 33 Capital Equipment Capital Operating Replacement Construction Totals Account Account Account 1995 1994 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: Accounts payable Accrued salaries and withholdings payable Due to other governmental units Deposits Total liabilities Fund equity: Contributed capital: Property owners Federal funds Total contributed capital Retained earnings: Reserved for capital replacement/construction Unreserved Total retained earnings Total fund equity Total liabilities and fund equity $520,487 $177,176 $332,009 $1,029,672 $954,377 275,406 - - 275,406 251,913 5,250 1,537 3,133 9,920 7,207 183 - - 183 279 2,234 - - 2,234 1,650 803,560 178,713 335,142 1,317,415 1,215,426 1,620,303 178,713 346,681 45,223 - - 45,223 45,223 250,325 - - 250,325 233,836 2,877,579 - - 2,877,579 2,865,332 303,420 - - 303,420 288,940 - - 11,539 11,539 - 3,476,547 0 11,539 3,488,086 3,433,331 1,801,915 - - 1,801,915 1,729,519 1,674,632 0 11,539 1,686,171 1,703,812 $2,478,192 $178,713 $346,681 $3,003,586 $2,919,238 $3,762 5 - $ - $3,762 $2,920 18,352 - - 18,352 19,530 54,106 - - 54,106 52,373 3,744 - - 3,744 - 79,964 0 0 79,964 74,823 324,925 - - 324,925 351,219 453,000 - - 453,000 453,000 777,925 0 0 777,925 804,219 - 178,713 346,681 525,394 495,745 1,620,303 - - 1,620,303 1,544,451 1,620,303 178,713 346,681 2,145,697 2,040,196 2,398,228 178,713 346,681 2,923,622 2,844,415 $2,478,192 $178,713 $346,681 $3,003,586 $2,919,238 115 CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UT11= FUND Statement 34 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1995 With Comparative Totals For The Year Ended December 31, 1994 Operating revenues: Charges for services: Customer services Penalties Charges for sales: Water sales Meter sales Total operating revenues Operating expenses: Cost of sales and services Distribution Administration Depreciation Total operating expenses Net income from operations Nonoperating revenues (expenses): Capital Equipment Operating Replacement Account Account Capital Construction Totals Account 1995 1994 t $16,802 $ - $ - $16,802 $23,321 75,912 28,460 - - 28,460 29,055 - 6,046 1,113,842 - - 1,113,842 1,079,641 (1,064) 4,766 - - 4,766 2,739 Total nonoperating revenues (expenses) 39,686 1,163,870 0 0 1,163,870 1,134,756 Net income before operating transfers 114,928 11,761 23,974 622,368 - - 622,368 569,049 26,294 386,137 - - 386,137 298,147 335,079 7,478 - - 7,478 8,451 $178,713 72,645 - - 72,645 83,930 1,088,628 0 0 1,088,628 959,577 75,242 0 0 75,242 175,179 Interest income 40,177 11,761 23,974 75,912 44,704 Miscellaneous revenues 573 - 6,046 6,619 77 Miscellaneous expenses (1,064) - (6,046) (7,110) 12,499 Total nonoperating revenues (expenses) 39,686 11,761 23,974 75,421 32,282 Net income before operating transfers 114,928 11,761 23,974 150,663 207,461 Operating transfers: Operating transfers in Operating transfers (out) Total operating transfers Net income Credit for depreciation on contributed assets Retained earnings - January 1 Retained earnings - December 31 116 21,086 15,000 - 36,086 65,307 (86,456) (8,714) (12,372) (107,542) 129,250 (65,370) 6,286 (12,372) (71,456) 63,943 49,558 18,047 11,602 79,207 143,518 26,294 - - 26,294 26,294 1,544,451 160,666 335,079 2,040,196 1,870,384 $1,620,303 $178,713 $346,681 $2,145,697 $2,040,196 CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UTILITY FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1995 With Comparative Amounts For the Year Ended December 31, 1994 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: 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 to Net cash flows from operating activities Operating income Adjustments to reconcile operating income to net cash flows from operating activities: Miscellaneous revenues Miscellaneous expenses Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in prepayments (Increase) decrease in inventory, at cost Increase (decrease) in accounts payable Increase (decrease) in accrued salaries and withholdings payable Increase (decrease) in due to other governmental units Increase (decrease) in deposits Total adjustments Net cash flows from operating activities 1995 $1,140,377 (775,692) (235,638) 6,619 (7,110) 128,556 36,086 (107,542) (71,456) Statement 35 1994 $1,122,585 (709,646) (173,861) 77 (12,499) 226,656 65,307 (129,250) (63,943) (55,004) (23,245) 73,199 41,415 73,199 41,415 75,295 180,883 954,377 773,494 $1,029,672 $954,377 $75,242 $175,179 6,619 (7,110) 72,645 (23,493) 96 (584) 842 (1,178) 1,733 3,744 53,314 77 (12,499) 83,930 (12,171) (259) 828 (60,754) 6,663 45,662 51,477 $128,556 $226,656 117 CITY OF COLUMBIA HEIGHTS, M WESOTA SEWER UTILITY FUND BALANCE SHEET December 31, 1995 With Comparative Totals For December 31, 1994 Statement 36 Capital Equipment Capital Operating Replacement Construction Totals Account Account Account 1995 1994 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 118 Total liabilities and fund equity $156,448 $231,528 $1,002,207 $1,390,183 $1,319,796 257,702 - - 257,702 233,333 1,653 1,945 9,076 12,674 10,980 25,051 - - 25,051 34,389 - - 813,271 813,271 853,031 66,339 - - 66,339 57,617 507,193 233,473 1,824,554 2,565,220 2,509,146 - 233,473 1,824,554 2,058,027 99,149 - - 99,149 117,990 1,474,449 1,784,038 233,473 1,824,554 36,586 - - 36,586 36,586 47,843 - - 47,843 46,290 3,424,405 - - 3,424,405 3,100,742 481,704 - - 481,704 473,268 _ - - - 213,852 3,990,538 0 0 3,990,538 3,870,738 2,154,639 - - 2,154,639 2,066,767 1,835,899 0 0 1,835,899 1,803,971 $2,442,241 $233,473 $1,824,554 $4,500,268 $4,431,107 $1,417 $ - $ - $1,417 $12,714 13,770 - - 13,770 15,358 _ _ _ - 5,577 52,749 - - 52,749 52,749 67,936 0 0 67,936 86,398 590,267 - - 590,267 629,202 - 233,473 1,824,554 2,058,027 2,241,058 1,784,038 - - 1,784,038 1,474,449 1,784,038 233,473 1,824,554 3,842,065 3,715,507 2,374,305 233,473 1,824,554 4,432,332 4,344,709 $2,442,241 $233,473 $1,824,554 $4,500,268 $4,431,107 CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTI= FUND STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1995 With Comparative Totals For The Year Ended December 31, 1994 Statement 37 Capital Equipment Capital Operating Replacement Construction Totals Account Account Account 1995 1994 Operating revenues: Charges for sales and services: Sewer service charges $1,061,075 $ - $ - $1,061,075 $982,985 Operating expenses: Cost of sales and services 723,413 723,413 724,093 Distribution 228,927 _ _ 228,927 236,126 Administration 7,460 - - 7,460 8,348 Depreciation 93,024 - - 93,024 107,500 Total operating expenses 1,052,824 0 0 1,052,824 1,076,067 ' Net income from operations 8,251 0 0 8,251 (93,082) Nonoperating revenues (expenses) Interest income 17,521 14,888 100,732 133,141 107,554 Miscellaneous revenues 23,602 47,294 70,896 160 Miscellaneous expenses (6,688) _ (46,521) (53,209) (11,136) Total nonoperating revenues (expenses) 34,435 14,888 101,505 150,828 96,578 Net income before operating transfer 42,686 14,888 101,505 159,079 3,496 Operating transfers: ' Operating transfers in 324,424 25,000 - 349,424 84,314 Operating transfers (out) (96,456) 8,714 (315,710) 420,880 148,258 Total operating transfers 227,968 16,286 (315,710) (71,456) (63,944) Net income (loss) 270,654 31,174 (214,205) 87,623 (60,448) Credit for depreciation on contributed assets 38,935 - - 38,935 38,935 Retained earnings - January 1 1,474,449 202,299 2,038,759 3,715,507 3,737,020 ' Retained earnings - December 31 $1,784,038 $233,473 $1,824,554 $3,842,065 $3,715,507 119 CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTH= FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1995 With Comparative Amounts For the Year Ended December 31, 1994 1 Statement 38 1 1995 1994 Cash flows from operating activities: Cash received from customers $1,036,706 $994,274 Cash paid to suppliers for goods and services (799,455) (914,780) Cash payments to employees for services (119,590) (117,640) Miscellaneous revenues 70,896 160 Miscellaneous expenses (53,209) (11,136) Net cash flows from operating activities 135,348 (49,122) Cash flows from noncapital financing activities: Operating transfers in 349,424 84,314 Operating transfers (out) (420,880) (148,258) Net cash flows from noncapital financing activities (71,456) (63,944) Cash flows from capital and related financing activities: Acquisition of fixed assets (124,952) (57,219) Cash flows from investing activities: Interest received on investments 131,447 71,685 Net cash flows from investing activities 131,447 71,685 Net increase in cash and cash equivalents 70,387 (98,600) Cash and cash equivalents - January 1 1,319,796 1,418,396 Cash and cash equivalents - December 31 $1,390,183 $1,319,796 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) $8,251 ($93,082) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues 70,896 160 Miscellaneous expenses (53,209) (11,136) Depreciation expense 93,024 107,500 Changes in assets and liabilities: (Increase) decrease in accounts receivable (24,369) 5,658 (Increase) decrease in due from other governmental units 28,179 117,631 (Increase) decrease in due from other funds 39,760 (112,000) (Increase) decrease in prepayments (8,722) (57,617) Increase (decrease) in accounts payable (16,874) (63,258) Increase ( decrease) in accrued salaries and withholdings payable (1,588) 4,273 Increase (decrease) in due to other governmental units - 52,749 Total adjustments 127,097 43,960 Net cash flows from operating activities $135,348 ($49,122) 120 CITY OF COLUMBIA HEIGHTS, MINNESOTA 1 REFUSE UTILITY FUND Statement 39 BALANCE SHEET December 31, 1995 ' With Comparative Amounts For December 31, 1994 Assets ' Current assets: Cash and cash equivalents Receivables: Accounts Interest Due from other governmental units Total current assets Fixed assets: Improvements other than buildings Machinery and equipment Total fixed assets Less: accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Total liabilities ' Fund equity: Retained earnings: Unreserved ' Total liabilities and fund equity 1995 $728,666 285,306 6,764 37,615 1,058,351 2,890 7,538 10,428 5,537 4,891 $1,063,242 $31 31 1,063,211 $1,063,242 1994 $607,000 276,229 4,722 23,406 911,357 2,890 5,607 8,497 4,319 4,178 $915,535 $669 669 914,866 $915,535 121 CITY OF COLUMBIA HEIGHTS, M UMOTA REFUSE UTILITY FUND Statement 40 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1995 With Comparative Amounts For The Year Ended December 31, 1994 Operating revenues: 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 31 122 1995 1994 $1,293,894 $1,323,832 10,645 878,015 272,891 1,608 1,218 1,164,377 129,517 51,762 64,131 10,656 126,549 256,066 (107,721) 148,345 914,866 $1,063,211 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 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1995 With Comparative Amounts For the Year Ended December 31, 1994 Statement 41 1995 1994 Cash flows from operating activities: Cash received from customers $1,284,817 $1,377,079 Cash paid to suppliers for goods and services (1,178,006) (1,136,967) Cash payments to employees for services - (2,006) Miscellaneous revenues 74,787 47,631 Net cash flows from operating activities 181,598 285,737 Cash flows from noncapital financing activities: Operating transfers (out) (107,721) (97,813) Cash flows from capital and related financing activities: Acquisition of fixed assets (1,931) (808) Cash flows from investing activities: Interest received on investments 49,720 26,315 Net cash flows from investing activities 49,720 26,315 Net increase in cash and cash equivalents 121,666 213,431 Cash and cash equivalents - January 1 607,000 393,569 Cash and cash equivalents - December 31 $728,666 $607,000 Reconciliation of operating income to Net cash flows from operating activities Operating income $129,517 $183,194 Adjustments to reconcile operating income to net cash flows from operating activities: Miscellaneous revenues 74,787 47,631 Depreciation expense 1,218 1,022 Changes in assets and liabilities: (Increase) decrease in accounts receivable (9,077) 56,381 (Increase) decrease in due from other governmental units (14,209) (3,134) (Increase) decrease in prepayments - 40 Increase (decrease) in accounts payable (638) 662 Increase (decrease) in accrued salaries and withholdings payable - (59) Total adjustments 52,081 102,543 Net cash flows from operating activities $181,598 $285,737 123 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND Statement 42 BALANCE SHEET December 31, 1995 With Comparative Amounts For December 31, 1994 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 Total liabilities and fund equity 124 1995 $604,873 5,412 2,548 169,000 606,261 1,388,094 4,360 182,681 104,538 361,842 653,421 408,799 244,622 $1,632,716 $290,144 52,205 63,393 405,742 1,226,974 $ 1,632,716 1994 1 $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 $1,654,892 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND Statement 43 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1995 With Comparative Totals For The Year Ended December 31, 1994 Operating revenues: Charges for sales: Liquor Beer Wine Other Total operating revenues Operating expenses: Cost of goods sold Operating expense Depreciation Total operating expenses Net income from operations Nonoperating revenues (expenses) Interest income Miscellaneous revenues Miscellaneous expenses Total nonoperating revenues (expenses) Net income before operating transfers Operating transfers: Operating transfers (out) Total operating transfers Net income (loss) Retained earnings - January 1 Retained earnings - December 31 (337,603) (401,834) (337,603) (401,834) (14,438) (114,525) 1,241,412 1,355,937 $1,226,974 $1,241,412 125 Top Heights Totals Top Valu Valu 11 Liquor 1995 1994 $959,103 $408,617 $311,022 $1,678,742 $1,607,461 1,437,818 718,192 664,916 2,820,926 2,705,284 318,320 145,476 57,427 521,223 493,997 414,749 132,635 121,750 669,134 710,515 3,129,990 1,404,920 1,155,115 5,690,025 5,517,257 2,543,910 1,134,346 886,373 4,564,629 4,475,098 430,766 214,400 140,586 785,752 733,126 14,079 18,425 12,561 45,065 55,298 2,988,755 1,367,171 1,039,520 5,395,446 5,263,522 $141,235 $37,749 $115,595 294,579 253,735 41,412 29,905 4,958 6,844 (17,784) (3,175) 28,586 33,574 323,165 287,309 (337,603) (401,834) (337,603) (401,834) (14,438) (114,525) 1,241,412 1,355,937 $1,226,974 $1,241,412 125 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1995 With Comparative Amounts For the Year Ended December 31, 1994 Cash flows from operating activities: Statement 44 1995 1994 ' Cash received from customers $5,692,246 $5,345,706 Cash paid to suppliers for goods and services (4,891,989) (4,693,059) Cash payments to employees for services (464,630) (433,772) Miscellaneous revenues 4,958 6,844 Miscellaneous expenses (17,784) (3,175) Net cash flows from operating activities 322,801 222,544 Cash flows from noncapital financing activities: Operating transfers (out) (337,603) (401,834) Net cash flows from noncapital financing activities (337,603) (401,834) Cash flows from capital and related financing activities: Acquisition of fixed assets (22,697) (9,586) Disposition of fixed assets 77,785 Net cash flows from capital and related financing activities 55,088 (9,586) Cash flows from investing activities: Interest received on investments 40,821 28,200 Net cash flows from investing activities 40,821 28,200 Net increase (decrease) in cash and cash equivalents 81,107 (160,676) Cash and cash equivalents - January 1 523,766 684,442 Cash and cash equivalents - December 31 $604,873 $523,766 Reconciliation of operating income to Net cash flows from operating activities Operating income $294,579 $253,735 Adjustments to reconcile operating income to net cash flows from operating activities: Miscellaneous revenues 4,958 6,844 Miscellaneous expenses (17,784) (3,175) Depreciation expense 45,065 55,298 Changes in assets and liabilities: (Increase) decrease in accounts receivable 2,221 (2,093) (Increase) decrease in due from other governmental units (222) (458) (Increase) decrease in due from other funds - (169,000) (Increase) decrease in prepayments 135 (10) (Increase) decrease in inventory, at cost 1,587 (30,831) Increase (decrease) in accounts payable (20,138) 106,209 Increase (decrease) in accrued salaries and withholdings payable 7,816 6,621 Increase (decrease) in due to other governmental units 4,584 (596) Total adjustments 28,222 (31,191) Net cash flows from operating activities $322,801 $222,544 126 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 Garaize 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 certain costs of the City's risk management services and to build a reserve for catastrophe losses. All costs for claims and claims administration are recorded in the fund and allocated to user funds based on a percentage ' risk factor. Insurance premiums are recorded directly in the user funds. 127 CITY OF COLUMBIA HEIGHTS, M114NESOTA INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1995 With Comparative Totals For December 31, 1994 Assets Statement 45 ' Central Energy Data Totals Garage Management Processing Insurance 1995 1994 Current assets: 316,653 395,871 - - 712,524 Cash and cash equivalents $170,444 $28,868 $31,733 $1,051,441 $1,282,486 $1,144,354 Receivables: 436,460 Machinery and equipment 106,599 - 49,774 Accounts - - - 184 184 732 Interest 1,534 268 47 9,253 11,102 8,193 Due from other governmental units - - - 30 30 - Prepayments 376 9,882 - 46,009 56,267 34,850 Inventory, at cost 86,431 - - - 86,431 82,124 Total current assets 258,785 39,018 31,780 1,106,917 1,436,500 1,270,253 Fixed assets: Buildings 316,653 395,871 - - 712,524 712,183 Improvements other than buildings 121,550 314,910 - - 436,460 436,460 Machinery and equipment 106,599 - 49,774 - 156,373 118,007 Total fixed assets 544,802 710,781 49,774 0 1,305,357 1,266,650 Less: accumulated depreciation 264,818 304,620 11,657 - 581,095 441,095 Net fixed assets 279,984 406,161 38,117 0 724,262 825,555 Total assets $538,769 $445,179 $69,897 $1,106,917 $2,160,762 $2,095,808 Liabilities and Fund Equity Current liabilities: Accounts payable $3,101 $18,539 $404 $38,047 $60,091 $25,331 Accrued salaries and withholdings payable 19,931 - 1,912 - 21,843 17,342 Capital lease payable current - 99,548 - - 99,548 95,173 Deferred revenue - - - - - - Accrued interest payable - 3,002 - - 3,002 3,591 Total current liabilities 23,032 121,089 2,316 38,047 184,484 141,437 Long -term liabilities: Capital lease payable net of current - 385,856 - - 385,856 485,404 Total liabilities 23,032 506,945 2,316 38,047 570,340 626,841 Fund equity: Contributed capital: Municipal funds 124,196 - - - 124,196 124,196 Property owners 64,653 - - - 64,653 64,653 Total contributed capital 188,849 0 0 0 188,849 188,849 Retained earnings: Reserved for insurance - - - 1,068,870 1,068,870 938,887 Reserved for capital improvements 52,267 - - - 52,267 44,936 Unreserved 274,621 (61,766) 67,581 - 280,436 296,295 Total retained earnings 326,888 (61,766) 67,581 1,068,870 1,401,573 1,280,118 Total fund equity 515,737 (61,766) 67,581 1,068,870 1,590,422 1,468,967 Total liabilities and fund equity $538,769 $445,179 $69,897 $1,106,917 $2,160,762 $2,095,808 128 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA 'INTERNAL SERVICE FUNDS Statement 46 COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ' For The Year Ended December 31, 1995 With Comparative Totals For The Year Ended December 31, 1994 ' Central Energy Data 70,810 Totals 50,824 Miscellaneous revenues Garage Management Processing Insurance 1995 1994 Operating revenues: - (24,728) - - (24,728) (28,936) ' Charges for services: 15,497 (22,673) 358 72,610 65,792 25,727 Services to departments $106,086 $202,657 $ - $ - $308,743 $309,033 Use of space 140,425 - 129,983 - 140,425 140,425 Insurance allocation 106,213 106,213 91,961 Recovery of damages - - - 4,715 4,715 77,258 Charges for sales: 77,800 - 149,729 146,548 Operating transfers (out) (15,700) ' Sales of gasoline 48,038 - - - 48,038 49,169 Total operating revenues 294,549 202,657 0 110,928 608,134 667,846 Operating expenses: (53,484) 18,316 129,983 203,612 Retained earnings - January 1 Cost of services and space 243,698 199,837 49,717 - 493,252 457,072 Claims administration - - - 37,720 37,720 3,771 Supplies and services - 6,839 6,839 3,979 ' Claims = = 8,266 8,266 5,347 Insurance deductible - - 730 730 4,804 Depreciation 28,008 101,560 10,125 - 139,693 130,431 ' Total operating expenses 271,706 301,397 59,842 53,555 686,500 605,404 r Net income (loss) from operations 22,843 (98,740) (59,842) 57,373 (78,366) 62,442 Nonoperating revenues (expenses): Interest income 11,741 2,055 3S8 70,810 84,964 50,824 Miscellaneous revenues 3,756 - - 1,800 5,556 3,839 Interest expense - (24,728) - - (24,728) (28,936) Total nonoperating revenues (expenses) 15,497 (22,673) 358 72,610 65,792 25,727 Net income (loss) before operating transfers 38,340 (121,413) (59,484) 129,983 (12,574) 88,169 Operating transfers: Operating transfers in 4,000 67,929 77,800 - 149,729 146,548 Operating transfers (out) (15,700) - - - (15,700) 31,10 Total operating transfers (11,700) 67,929 77,800 0 134,029 115,443 Net income (loss) 26,640 (53,484) 18,316 129,983 121,455 203,612 Retained earnings - January 1 300,248 (8,282) 49,265 938,887 1,280,118 1,076,506 Retained earnings - December 31 $326,888 ($61,766) $67,581 $1,068,870 $1,401,573 $1,280,118 129 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 1995 With Comparative Totals For the Year Ended December 31,1994 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 Statement 47 1 Totals 1995 1994 $295,281 $202,657 $ - $110,714 $608,652 $669,866 (132,985) (304,011) (19,851) (26,667) (483,514) (467,583) (112,738) - (32,780) - 1145,518) (106,744) 3,756 - - 1,800 5,556 3,839 53,314 (101,354) (52,631) 85,847 (14,824) 99,378 Cash flows from noncapital financing activities: Operating transfers in 4,000 67,929 77,800 - 149,729 146,548 ' Operating transfers (out) (15,700) - - - (15,700) (31,105) Net cash flows from noncapital financing activities (11,700) 67,929 77,800 0 134,029 115,443 Cash flows from capital and related financing activities: Acquisition of fixed assets Interest expense Net cash flows from capital and related financing activities Cash flows from investing activities: Interest earned on investments Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellancous revenues Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in due from other governmental units (Increase) decrease in prepayments (Increase) decrease in inventory, at cost 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 130 (6,980) - (31,420) - (38,400) (24,737) (24,728) - - (24,728) (28,936) (6,980) (24,728) (31,420) 0 (63,128) (53,673) 11,140 2,385 311 68,219 82,055 45,722 45,774 (55,768) (5,940) 154,066 138,132 206,870 124,670 84,636 37,673 897,375 1,144,354 937,484 $170,444 $28,868 $31,733 $1,051,441 $1,282,486 $1,144,354 ��zzcq�� $22,843 ($98,740) ($59,942) $57,373 ($78,366) $62,442 3,756 - - 1,800 5,556 3,839 28,008 101,560 10,125 139,693 130,431 732 - - (184) 548 2,020 - - - (30) (30) - (376) (9,882) - (11,159) (21,417) (16,677) (4,307) (4,307) (1,928) 69 1,470 (4,826) 38,047 34,760 14,123 2,589 - 1,912 - 4,501 1,807 - (95,173) - - (95,173) (90,991) - (589) - - (589) (2,936) - - - - - (2,752) 30,471 (2,614) 7,211 28,474 63,542 36,936 $53,314 ($101,354) ($52,631) $85,847 ($14,824) $99,378 CITY OF COLUMBIA HEIGHTS, MWNESOTA 'CENTRAL GARAGE FUND Statement 48 BALANCE SHEET December 31, 1995 ' With Comparative Totals For December 31, 1994 ' 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 tLiabilities and Fund Equity ' Current liabilities: Accounts payable Accrued salaries and withholdings payable Total liabilities Fund equity: Contributed capital: Municipal funds Property owners Total contributed capital Retained earnings: Reserved for capital improvement Unreserved Total retained earnings Total fund equity Total liabilities and fund equity Operating Account Capital Equipment Replacement Totals Account 1995 1994 $118,612 $51,832 $170,444 $124,670 - - - 732 19099 435 1,534 933 376 - 376 124,196 86,431 - 86,431 82,124 206,518 52,267 258,785 208,459 188,849 316,653 - 316,653 316,312 121,550 - 121,550 121,550 106,599 - 106,599 99,653 544,802 0 544,802 537,515 264,818 - 264,818 236,503 279,984 0 279,984 301,012 $486,502 $52,267 $538,769 $509,471 $3,101 $ - $3,101 $3,032 19,931 - 19,931 17,342 23,032 0 23,032 20,374 124,196 - 124,196 124,196 64,653 - 64,653 64,653 188,849 0 188,849 188,849 - 52,267 52,267 44,936 274,621 - 274,621 255,312 274,621 52,267 326,888 300,248 463,470 52,267 515,737 489,097 $486,502 $52,267 $538,769 $509,471 131 CITY OF COLUMBIA HEIGHTS, M WESOTA CENTRAL GARAGE FUND Statement 49 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1995 With Comparative Totals For The Year Ended December 31, 1994 Capital Equipment Operating Replacement Totals Account Account 1995 1994 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 31 132 $106,086 $ - $106,086 $106,376 140,425 - 140,425 140,425 48,038 - 48,038 49,169 294,549 0 294,549 295,970 243,698 - 243,698 234,616 28,008 - 28,008 27,379 271,706 0 271,706 261,995 22,843 0 22,843 33,975 8,410 3,331 11,741 5,790 3,756 - 3,756 3,839 12,166 3,331 15,497 9,629 35,009 3,331 38,340 43,604 - 4,000 4,000 4,000 (15,700) - (15,700) (15,700) (15,700) 4,000 (11,700) (11,700) 19,309 7,331 26,640 31,904 255,312 44,936 300,248 268,344 $274,621 $52,267 $326,888 $300,248 CITY OF COLUMBIA HEIGHTS, MINNESOTA 'CENTRAL GARAGE FUND Statement 50 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1995 ' With Comparative Amounts For the Year Ended December 31, 1994 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 ' Cash 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 prepayments ' (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 INet cash flows from operating activities 1995 $295,281 (132,985) (112,738) 3,756 53,314 4,000 (15,700) (11,700) 1994 $297,990 (135,885) (106,744) 3,839 59,200 4,000 (15,700) (11,700) (6,980) (6,383) 11,140 5,114 45,774 46,231 124,670 78,439 $170,444 $124,670 $22,843 $33,975 3,756 28,008 732 (376) (4,307) 69 2,589 30,471 $53,314 3,839 27,379 2,020 (1,928) (5,140) 1,807 (2,752) 25,225 $59,200 133 CITY OF COLUMBIA HEIGHTS, MZgNESOTA ENERGY MANAGEMENT FUND BALANCE SHEET December 31, 1995 With Comparative Amounts For December 31, 1994 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 134 Statement 51 1995 1994 $28,868 $84,636 268 598 9,882 - 39,018 85,234 395,871 314,910 710,781 304,620 406,161 $445,179 395,871 314,910 710,781 203,060 507,721 $592,955 $18,539 $17,069 99,548 95,173 3,002 3,591 121,089 115,833 385,856 485,404 506,945 601,237 (61,766) (8,282) $445,179 $592,955 CITY OF COLUMBIA HEIGHTS, MINNESOTA 'ENERGY MANAGEMENT FUND Statement 52 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1995 With Comparative Amounts For The Year Ended December 31, 1994 1 135 1995 1994 Operating revenues: ' Charges for services: Services to departments $202,657 $202,657 Total operating revenues 202,657 202,657 ' Operating expenses: Cost of services and space 199,837 195,453 Depreciation 101,560 101,520 Total operating expenses 301,397 296,973 Net income (loss) from operations (98,740) (94,316) Nonoperating revenues (expenses): 2,055 3,709 'Interest Interest expense (24,728) (28,936) Total nonoperating revenues (22,673) (25,227) Net income (loss) before operating transfers (121,413) (119,543) Operating transfers: Operating transfers in 67,929 64,748 ' Net income (loss) (53,484) (54,795) Retained earnings - January 1 (8,282) 46,513 ' Retained earnings - December 31 ($61,766) ($8,282) 1 135 Cash flows from noncapital financing activities: Operating transfers in Cash flows from capital and related financing activities: Interest expense Net cash flows from capital and related financing activities Cash flows from investing activities: Interest earned on investments Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense Changes in assets and liabilities: (Increase) decrease in prepayments (Increase) decrease in accounts payable Increase (decrease) in capital lease payable Increase (decrease) in accrued interest payable Total adjustments Net cash flows from operating activities 136 67,929 64,748 ' CITY OF COLUMBIA HEIGHTS, MN4NESOTA (28,936) ' (24,728) ENERGY MANAGEMENT FUND (95,173) Statement 53 3,111 STATEMENT OF CASH FLOWS (2,936) , For The Year Ended December 31, 1995 (21,524) ($101,354) 84,636 With Comparative Amounts For the Year Ended December 31, 1994 $28,868 ' 1995 1994 Cash flows from operating activities: ' Cash received from customers $202,657 $202,657 Cash paid to suppliers for goods and services Net cash flows from operating activities (304,011) (101,354) (263,104) (60,447) , Cash flows from noncapital financing activities: Operating transfers in Cash flows from capital and related financing activities: Interest expense Net cash flows from capital and related financing activities Cash flows from investing activities: Interest earned on investments Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense Changes in assets and liabilities: (Increase) decrease in prepayments (Increase) decrease in accounts payable Increase (decrease) in capital lease payable Increase (decrease) in accrued interest payable Total adjustments Net cash flows from operating activities 136 67,929 64,748 ' (24,728) (28,936) ' (24,728) (28,936) (95,173) 2,385 3,111 ' (2,936) (2,614) (55,768) (21,524) ($101,354) 84,636 106,160 $28,868 $84,636 ($98,740) ($94,316) ' 101,560 101,520 (9,882) 9,207 1,470 17,069 , (95,173) (90,991) (589) (2,936) (2,614) 33,869 , ($101,354) ($60,447) CITY OF COLUMBIA HEIGHTS, MINNESOTA DATA PROCESSING FUND BALANCE SHEET December 31, 1995 With Comparative Amounts For December 31, 1994 Assets Current assets: Cash and cash equivalents Interest receivable Total current assets Fixed assets: ' 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 ' Retained earnings: Unreserved ' Total liabilities and fund equity Statement 54 1995 1994 $31,733 $37,673 47 - 31,780 37,673 49,774 18,354 49,774 18,354 11,657 1,532 38,117 16,822 $69,897 $54,495 $404 $5,230 1,912 - 2,316 5,230 67,581 49,265 $69,897 $54,495 137 -F] CITY OF COLUMBIA HEIGHTS, MINNESOTA DATA PROCESSING FUND Statement 55 , STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1995 ' With Comparative Amounts For The Year Ended December 31, 1994 1995 Operating revenues $ - Operating expenses: Cost of services 49,717 Depreciation 10,125 Total operating expenses 59,842 Net income (loss) from operations (59,842) Nonoperating revenues (expenses): Interest 358 Operating transfers: Operating transfers in Net income Retained earnings - January 1 Retained earnings - December 31 138 77,800 18,316 49,265 $67,581 1994 $ 27,003 , 1,532 28,535 ' (28,535) 77,800 ' 49,265 , $49,265 , MY OF COLUMBIA HEIGHTS, DHNNFSOTA 'DATA PROCESSING FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1995 With Comparative Amounts For The Year Ended December 31, 1994 Cash flows from operating activities: Cash paid to suppliers for goods and services Cash payments to employees for services Net cash flows from operating activities Cash flows from noncapital financing activities: Operating transfers in 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 ' 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: t Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts payable ' (Increase) decrease in accrued salaries and withholdings payable Total adjustments Net cash flows from operating activities 1 1 Statement 56 1995 1994 ($19,851) (32,780) (52,631) ($21,773) (21,773) 77,800 77,800 (31,420) (18,354) 311 (5,940) 37,673 $31,733 37,673 $37,673 ($59,842) ($28,535) 10,125 (4,826) 1,912 7,211 ($52,631) 1,532 5,230 6,762 ($21,773) 139 CITY OF COLUMBIA HEIGHTS, MEWESOTA INSURANCE FUND Statement 57 BALANCE SHEET December 31, 1995 With Comparative Amounts For December 31, 1994 Assets Current assets: Cash and cash equivalents Receivables: Accounts Interest Due from other governmental units Prepayments Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Fund equity: Retained earnings: Reserved for insurance Total liabilities and fund equity 140 1995 1994 $1,051,441 $897,375 184 - 9,253 6,662 30 - 46,009 34,850 $1,106,917 $938,887 $38,047 $ - 1,068,870 938,887 $1,106,917 $938,887 CITY OF COLUMBIA HEIGHTS, MINNESOTA INSURANCE FUND Statement 58 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1995 With Comparative Amounts For The Year Ended December 31, 1994 1 141 1995 1994 Operating revenues: ' Insurance allocation $106,213 $91,961 Recovery of damages 4,715 77,258 Total operating revenues 110,928 169,219 ' Operating expenses: Claims administration 37,720 3,771 'Supplies and services 6,839 3,979 Claims 8,266 5,347 Insurance deductible 730 4,804 ' Total operating expenses 53,555 17,901 Net income from operations 57,373 151,318 Nonoperating revenues: Interest income 70,810 41,325 Miscellaneous revenues 1,800 - Total nonoperating revenues 72,610 41,325 ' Net income before operating transfers 129,983 192,643 Operating transfers: Operating transfers (out) - (15,405) Net income 129,983 177,238 Retained earnings - January 1 938,887 761,649 Retained earnings - December 31 $1,068,870 $938,887 1 141 CITY OF COLUMBIA HEIGIITS, MINNESOTA INSURANCE FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1995 With Comparative Amounts For the Year Ended December 31, 1994 Cash flows from operating activities: Cash received from damages Cash paid to suppliers for goods and services Miscellaneous revenues Net cash flows from operating activities Cash flows from noncapital financing activities: Operating transfers (out) Cash flows from investing activities: Interest earned on investments Net increase in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income to Net cash flows from operating activities Operating income Adjustments to reconcile operating income to net cash flows from operating activities: Miscellaneous revenues Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in due from other governmental units (Increase) decrease in prepayments Increase (decrease) in accounts payable Total adjustments Net cash flows from operating activities 142 1995 $110,714 (26.667) 1,800 85,847 68,219 154,066 897,375 $1,051,441 $57,373 1,800 (184) (30) (11,159) 38,047 28,474 $85,847 Statement 59 ' 1994 $169,219 (46,821) 122,398 (15,405) , 37,497 ' 144,490 752,885 $897,375 , $151,318 ' (25,884) (3,036) $122,398 i t 1 1 TRUST AND AGENCY FUNDS Trust and Agency Funds are used to account for assets held by a government in a trustee or agent capacity for individuals, private organizations, other governments and/or other funds. Agency Funds: Deferred Compensation Fund - used to account for assets held by deferred compensation trustee. Permit Surcharge Fund - used to account for SAC 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. 143 CITY OF COLUMBIA HEIGHTS, MINNESOTA FIDUCIARY FUNDS COMBINING BALANCE SHEET December 31, 1995 Statement 60 t Expendable Trust Flex Police/Fire Compensated Assets Benefit Contingency Absences Cash and investments Receivables: Interest Assets held by deferred compensation trustee Total assets Liabilities and Fund Balance Liabilities: $16,511 $317,159 $393,921 Agency Funds Total , $8,550 $736,141 89 2,088 3,559 - 5,736 - - - 2,659,907 2,659,907 $16,600 $319,247 $397,480 $2,668,457 $3,401,784 Accounts payable $6,091 $47,732 $ - $202 $54,025 Deferred compensation payable to employees - - - 2,659,907 2,659,907 Deposits - - - 7,951 7,951 Other liabilities - - - 397 397 Total liabilities 6,091 47,732 0 2,668,457 2,722,280 Fund balance: Unreserved: Designated for compensated absences Designated for subsequent years' expenditures Undesignated Total fund balance Total liabilities and fund balance 144 - 397,480 - 397,480 - 271,515 - - 271,515 10,509 - - - 10,509 10,509 271,515 397,480 0 679,504 $16,600 $319,247 $397,480 $2,668,457 $3,401,784 CITY OF COLUMBIA HEIGHTS, MINNESOTA EXPENDABLE TRUST FUNDS Statement 61 'COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1995 Flex Police/Fire Compensated Benefit Contingency Absences Total Revenues: Intergovernmental State $ - $171,231 $ - $171,231 Flex withholding 34,709 - - 34,709 Interest 681 15,982 27,235 43,898 Total revenues 35,390 187,213 27,235 249,838 ' Expenditures: Personal services - 77,701 - 77,701 Other services and charges 30,296 - = 30,296 Total expenditures 30,296 77,701 107,997 Revenues over expenditures ' 5,094 109,512 27,235 141,841 Other financing sources: Operating transfers in - - - - 1 Net increase in fund balance 5,094 109,512 27,235 141,841 Fund balance - January 1 5,415 162,003 370,245 537,663 Fund balance - December 31 $10,509 $271,515 $397,480 $679,504 145 CITY OF COLUMBIA HEIGHTS, MINNESOTA FIDUCIARY FUNDS Statement 62 COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - ALL AGENCY FUNDS For The Year Ended December 31, 1995 Total All Aaencv 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 146 Balance Balance 1/1/95 Additions Deletions 12/31/95 $7,697 $ - $2,078 $5,619 3,000 - 69 2,931 10,697 0 2,147 8,550 1,860,493 799,414 - 2,659,907 $1,871,190 $799,414 $2,147 $2,668,457 ' $1,816 $ - $1,614 $202 1,860,493 799,414 - 2,659,907 8,412 - 461 7,951 469 - 72 397 $1,871,190 $799,414 $2,147 $2,668,457 ' $1,860,493 $799,414 $ - $2,659,907 $1,860,493 $799,414 $ - $2,659,907 ' $ $1,769 $11 ' $ 1,780 - $1,780 $ - $1,769 $11 $5,917 $ - $309 $5,608 3,000 - 69 2,931 $8,917 $0 $378 $8,539 $8,412 $ - $461 $7,951 36 189 - 225 469 - 106 363 $8,917 $189 $567 $8,539 HOUSING AND REDEVELOPMENT AUTHORITY COMPONENT UNIT 147 CITY OF COLUMBIA HEIGHTS, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT) COMBINING BALANCE SHEET December 31, 1995 With Comparative Totals For December 31, 1994 Assets Cash and investments Receivables: Accounts Taxes Interest Loans Due from other governmental units Due from other funds Due from primary government Due from developer Prepayments Assets held by deferred compensation trustee Real estate held for resale Fixed assets Amount to be provided for compensated absences Total assets Liabilities, Equity and Other Credits Liabilities: Accounts payable Accrued salaries and withholdings payable Deferred compensation payable Due to other governmental units Due to other funds Due to primary government Deferred revenue Deposits Insurance and taxes in escrow Compensated absences payable Other liabilities: Accrued liability for future program income Total liabilities Equity and other credits: Investment in general fixed assets Fund balance: Reserved for prepayments Reserved for community development Reserved for real estate held for resale Unreserved: Designated for Business Revolving Loan Fund Designated for maintenance Undesignated Total equity and other credits Total liabilities, equity and other credits 148 Statement 63 Governmental Fund Types Account Group Special Capital General Totals General Revenue Project Fixed Assets 1995 1994 $85,172 $564,339 $ - $ - $649,511 $445,193 192 109 - - 301 607 2,729 - - - 2,729 2,348 927 4,469 - - 5,396 662 287,344 - - - 287,344 304,587 - 27,348 - - 27,348 150,023 175,327 - - - 175,327 211,210 - - - - - 1,430 - - 65,000 - 65,000 65,000 563 5,406 - - 5,969 7,085 - - - - - 185,447 21,113 33,002 - - 54,115 21,114 - - - 5,521,004 5,521,004 5,253,888 - - - - - 10,403 $573,367 $634,673 $65,000 $5,521,004 $6,794,044 $6,658,997 $7,765 $29,215 $36,980 $56,667 11,729 - - - 11,729 2,832 - - - - - 185,447 - 66,101 - - 66,101 35,830 - 55,305 120,022 - 175,327 211,210 - - - - - 14,842 500,227 131 65,000 - 565,358 371,059 125 13,960 - - 14,085 13,394 - - - - - 4,275 - - - - - 10,403 - 33,002 - - 33,002 - 519,846 197,714 185,022 0 902,582 905,959 - - - 5,521,004 5,521,004 5,253,888 563 5,406 - - 5,969 7,085 - - - - - 176,163 21,113 - - 21,113 21,114 31,845 - - - 31,845 43,964 - 332,931 - - 332,931 249,577 - 98,622 (120,022) - (21,400) 1,247 53,521 436,959 (120,022) 5,521,004 5,891,462 5,753,038 $573,367 $634,673 $65,000 $5,521,004 $6,794,044 $6,658,997 CITY OF COLUMBIA HEIGHTS, DHNNFSOTA 123,268 19,582 - HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT) 157,941 Statement 64 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND 13,450 - CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES 22,945 Other services and charges For The Year Ended December 31, 1995 350,411 30,273 476,159 With Comparative Totals For The Year Ended December 31, 1994 Loans and grants 35,667 26,984 - 62,651 349,888 Capital outlay 81,965 342,765 3,607 428,337 167,255 Special Capital Totals General Revenue Project 1995 1994 Revenues: Revenues over(under)expenditures (140,710) Taxes $66,008 $ - $ - $66,008 $58,232 Intergovernmental 68,732 532,672 - 601,404 600,128 Rents - 385,094 - 385,094 383,204 Interest 7,259 33,679 - 40,938 14,902 Other 56,086 34,648 1 90,735 86,710 Total revenues 198,085 986,093 1 1,184,179 1,143,176 Expenditures: Personal services 123,268 19,582 - 142,850 157,941 Supplies 2,420 13,450 - 15,870 22,945 Other services and charges 95,475 350,411 30,273 476,159 535,836 Loans and grants 35,667 26,984 - 62,651 349,888 Capital outlay 81,965 342,765 3,607 428,337 167,255 Total expenditures 338,795 753,192 33,880 1,125,867 1,233,865 Revenues over(under)expenditures (140,710) 232,901 (33,879) 58,312 (90,689) Other financing sources (uses): Operating transfers (out) to primary government (74,076) (112,928) - (187,004) - Total other financing sources (uses) (74,076) (112,928) 0 (187,004) 0 Net increase (decrease ) in fund balance (214,786) 119,973 (33,879) (128,692) (90,689) Fund balance (deficit) - January 1 268,307 316,986 (86,143) 499,150 589,839 Fund balance (deficit) - December 31 $53,521 $436,959 ($120,022) $370,458 $499,150 149 CITY OF COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT) COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUND TYPES For The Year Ended December 31, 1994 Revenues: Taxes Intergovernmental revenue Rents Interest earned on investments Other Total revenues Expenditures: Personal services Supplies Other services & charges Loans and grants Capital outlay Total expenditures Revenues over (under) expenditures 91,510 140,710 (232,220) 110,420 91,161 (19,259) Other financing sources(uses): Operating transfers (out) to primary government (71,040) (74,076) (3,036) (110,420) (110,420) - Total other financing sources (uses) (71,040) (74,076) (3,036) (110,420) 110,420 0 Net increase (decrease) in fund balance $20,470 (214,786) ($235,256) $0 (19,259) ($19,259) �a ' Fund balance - January 1 268,307 36,715 Fund balance - December 31 $53,521 $17,456 1 150 1 General Anoka County CDBG Over Over (Under) (Under) Budget Actual Budget Budget Actual Budget $72,000 $66,008 ($5,992) $ - $ - $ - 279,730 68,732 (210,998) 406,260 349,936 (56,324) 7,130 7,259 129 - 6,112 6,112 230,450 56,086 (174,364) - 6,411 6,411 589,310 198,085 (391,225) 406,260 362,459 43,801 131,190 123,268 (7,922) 3,570 3,536 (34) 4,230 2,420 (1,810) 400 349 (51) 60,240 95,475 35,235 39,360 32,365 (6,995) 299,140 35,667 (263,473) 30,000 26,984 (3,016) 3,000 81,965 78,965 222,510 208,064 (14,446) 497,800 338,795 (159,005) 295,840 271,298 (24,542) 91,510 140,710 (232,220) 110,420 91,161 (19,259) Other financing sources(uses): Operating transfers (out) to primary government (71,040) (74,076) (3,036) (110,420) (110,420) - Total other financing sources (uses) (71,040) (74,076) (3,036) (110,420) 110,420 0 Net increase (decrease) in fund balance $20,470 (214,786) ($235,256) $0 (19,259) ($19,259) �a ' Fund balance - January 1 268,307 36,715 Fund balance - December 31 $53,521 $17,456 1 150 1 Statement 65 Special Revenue Totals (Memorandum Only) Low Income Housing (MN 105) Parkview Villa South Housing 1995 Over Over Over (Under) (Under) (Under) Budget Actual Budget Budget Actual Budget Budget Actual Budget $ - $ - $ - $ $ $ $72,000 $66,008 ($5,992) 94,760 182,736 87,976 _ = = 780,750 601,404 (179,346) 213,840 212,633 (1,207) 177,060 172,461 (4,599) 390,900 385,094 (5,806) 3,200 5,274 2,074 7,100 22,293 15,193 17,430 40,938 23,508 1 7,500 19,021 11,521 4,040 9,216 5,176 241,990 90,734 (151,256) 319,300 419,664 100,364 188,200 203,970 15,770 1,503,070 1,184,178 318,892 r6,770 5,352 (1,418) 14,800 10,694 (4,106) 156,330 142,850 (13,480) 15,380 8,317 (7,063) 6,800 4,784 (2,016) 26,810 15,870 (10,940) 229,350 212,260 (17,090) 110,850 105,786 (5,064) 439,800 445,886 6,086 - - 329,140 62,651 (266,489) 67,600 133,238 65,638 9,500 1,463 (8,037) 302,610 424,730 122,120 319,100 359,167 40,067 141,950 122,727 (19,223) 1,254,690 1,091,987 (162,703) 200 60,497 60,297 46,250 81,243 34,993 248,380 92,191 (156,189) ' - (1,716) (1,716) - (792) (792) (181,460) (187,004) (5,544) 0 (1,716) (1,716) 0 (792) (792) (181,460) (187,004) (5,544) $200 58,781 $58,581 $46,250 27,791 $86,572 80,451 $34,201 $66,920 252,480 $332,931 (94,813) $161,733 585,293 $490,480 151 CH 152 CITY OF COLUMBIA HEIGHTS, MINNESOTA rGENERAL 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. 153 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPARATIVE SCHEDULE OF GENERAL FAXED ASSETS BY SOURCE For The Year Ended December 31, 1995 General Fixed Assets Land Buildings Improvements other than buildings Machinery and equipment Construction in process Total city 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 154 Balance 1/1/95 Additions Statement 66 I Balance Deletions 12/31/95 $3,132,099 $71,264 $ - $3,203,363 3,100,451 66,904 - 3,167,355 1,471,787 31,466 - 1,503,253 4,367,854 405,089 18,695 4,754,248 925,543 412,983 925,543 412,983 $12,997,734 $987,706 $944,238 $13,041,202 $90,000 .5 - 5 - $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 8,395,899 987,706 944,238 8,439,367 $12,997,734 $987,706 $944,238 $13,041,202 1 I CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS Statement 67 BY FUNCTION AND ACTIVITY For The Year Ended December 31, 1995 155 f_ Balance Balance 1/1/95 Additions Deletions 12/31/95 General government: Council $22,855 $ - $75 $22,780 Manager 24,452 642 200 24,894 Finance and elections 271,531 1-724 550 272,705 Assessing 15,097 100 14,997 Planning 679 - - 679 General government buildings 1,131,928 120,581 - 1,252,509 Total general government 1,466,542 122,947 925 1,588,564 Public safety: Police/animal/civil defense 443,230 99,957 12,450 530,737 Fire 440,058 103,923 - 543,981 Inspections 26,175 10,873 30 37,018 Total public safety 909,463 214,753 12,480 1,111,736 Public works: Engineering 224,652 2,351 100 226,903 Maintenance 1,664,868 137,229 1,860 1,800,237 Total public works 1,889,520 139,580 1,960 2,027,140 Other departments: Sanitation 652 - - 652 Parks and recreation 7,432,413 69,215 3,230 7,498,398 Library 352,982 14,145 100 367,027 Cable television 20,619 14,083 - 34,702 Construction in process 925,543 412,983 925,543 412,983 Total other departments 8,732,209 510,426 928,873 8,313,762 Total general fixed assets $12,997,734 $987,706 $944,238 $13,041,202 155 f_ CITY OF COLUMBIA HEIGHTS, MIIVNESOTA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 1995 General government: Statement 68 Improvements Machinery Other Than and Construction Land Buildings Buildings Equipment In Process Total Council $ - $ - $ - $22,780 $ - $22,780 Manager - - - 24,894 - 24,894 Finance and elections - - - 272,705 - 272,705 Assessing - - - 14,997 - 14,997 Planning - - - 679 - 679 General government buildings 182,184 987,312 22,296 60,717 - 1,252,509 Total general government 182,184 987,312 22,296 396,772 0 1,588,564 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 (p Construction in process Total other departments Totals 156 - - 1,710 529,027 - 530,737 - 24,530 2,199 517,252 - 543,981 - - - 37,018 - 37,018 0 24,530 3,909 1,083,297 0 1,111,736 - 4,487 2,801 219,615 - 226,903 - 18,750 577,026 1,204,461 - 1,800,237 0 23,237 579,827 1,424,076 0 2,027,140 - - - 652 - 652 3,000,179 1,925,052 896,087 1,677,080 - 7,498,398 21,000 201,659 1,134 143,234 - 367,027 - 5,565 - 29,137 - 34,702 - - - - 412,983 412,983 3,021,179 2,132,276 897,221 1,850,103 412,983 8,313,762 $3,203,363 $3,167,355 $1,503,253 $4,754,248 $412,983 $13,041,202 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. 157 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF GENERAL LONG -TERM DEBT December 31, 1995 Amount Available And To Be Provided For The Payment Of General Long -Term Debt Amount available in Debt Service Funds Amount to be provided for retirement of Long -term debt Liability for compensated absences Note payable to HRA Total available and to be provided for General Long -Term Debt Payable Note payable to HRA General Obligation Bonds payable Accreted interest on Capital Appreciation Bonds Liability for compensated absences payable Total general long -term debt payable 158 Statement 69 $ 1,422,979 8,196,107 437,967 13,678 $10,070,731 $13,678 8,624,721 994,365 437,967 $10,070,731 I CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY Statement 70 December 31, 1995 IGeneral Obligation Bonds Year Principal Interest 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 $8,624,721 $5,439,862 1 159 W-, 160 1, l__; t 11 CITY OF COLUMBIA HEIGHTS, MM4NESOTA I i SUPPLEMENTARY FINANCIAL INFORMATION 161 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINING SCHEDULE OF BONDS PAYABLE December 31, 1995 Tax Increment Bonds 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. 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 for the payment thereof in full. If any bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit Total General Obligation Tax Increment Bonds 162 Interest Issue Maturity Rate Date Date 6/1/87 3/1/02 3/01-9/01 9/01 6.90% 6.95% 7.00% 7.00% 7.10% 7.10% 7.15% 7.15% 3/01-9/01 5.00% 5.10% 5.30% 5.50% 5.60% 5.70% 5.80% 4.40% 4.75% 5.15% 8/23/90 9/1/09 11/21/91 3/1/02 7/1/93 2/1/97 ' Exhibit 1 Interest Original Balance Balance Paid in Issue 1/1/95 Sold Retired 12/31 /95 Current Year $9,090,000 $35,000 $ - $35,000 $ - $1,155 2,399,721 2,399,721 - - 2,399,721 - 6,670,000 6,670,000 - 835,000 5,835,000 333,411 ' 735,000 r 575,000 - 185,000 390,000 23,395 $18,894,721 $9,679,721 $0 $1,055,000 $8,624,721 $357,961 163 CITY OF COLUMBIA HEIGHTS,IVDNNESOTA 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, 1995 (Unaudited) 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) 164 $8,175,000 $21,964,721 $22,658,797 $ - ($694,076) - - 12,217,749 1,572,680 (13,790,429) - - 2,934,474 103,408 (3,037,882) 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 2,524,808 - (2,184,808) 1,397,339 10,292,630 24,540,351 43,182,005 1,676,088 (20,317,742) 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 22,189,289 1,055,000 (7,949,568) 10,031,325 19,248,682 12,846,121 357,961 6,044,600 566,000 1,008,500 1,397,339 11,672 (400,511) 1,299,000 3,789,399 3,313,676 - 475,723 27,796,325 51,579,102 51,263,409 1,424,633 (1,108,940) ($17,503,695) ($27,038,751) ($8,081,404) $251,455 ($19,208,802) CITY OF COLUMBIA HEIGHTS, NDNNESOTA NOTE - SOURCES OF FUNDS Exhibit 3 FOR HOUSING AND REDEVELOPMENT AUTHORITY TAX INCREMENT FINANCING DISTRICTS December 31, 1995 (Unaudited) Note (1) Sources of Funds Real Estate Land Sales Pro ert ' Columbia Heights Office Plaza Evenson Properties ' LaBelle Park Condo No. 1 The Gaughan Companies Columbia Heights Mall Evenson Properties LaBelle Park Condo No. 2 The Gaughan Companies ' LaBelle Park Condo No. 3 The Gaughan Companies ' University Heights Housing Columbia Park Medical Clinic Columbia Park Properties ' Sullivan Lake Housing Columbia Square ' Northeast Partners Parkview Villa South Housing Totals Note (2) Sources of Funds Tax Exempt Obligation Issued on Behalf of Private Entities Land Sale Amount Date $133,500 9/77 137,464 9/77 138,167 1/78 168,498 2/78 126,000 8/78 1 8/80 20,000 10/81 420,000 10/83 149,459 7/84 0 7/86 �P1,67J,V07 Total Cost* $6,116,914 Development Amount Issue Type Columbia Heights Office Plaza Commercial Redevelopment Evenson Properties $6,000,000 Revenue Bonds Series 1981 Columbia Heights Mall Commercial Redevelopment Evenson Properties 4,000,000 Revenue Bonds Series 1981 4111 Building South Commercial Redevelopment Ruvelson and Associates 775,000 Revenue Bonds Series 1981 LaBelle Park Condominiums Commercial Redevelopment The Gaughan Companies 9,000,000 Revenue Bonds Series 1980 Columbia Park Medical Clinic Commercial Redevelopment Columbia Park Properties 5,000,000 Revenue Bonds Series 1985 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. 165 CH 166 CITY OF COLUMBIA HEIGHTS, MINNESOTA III. STATISTICAL SECTION 167 CITY OF COLUMBIA HEIGHTS, MINNESOTA ASSESSED VALUE, TAX CAPACITY, AND Table 1 ESTIMATED ACTUAL VALUE OF ALL TAXABLE PROPERTY (A) Years 1986 Through 1995 (Unaudited) Ratio of Total Assessed/ Tax Capacity Real Property Personal Property Area Wide Allocation (B) Total Value Assessed/ Estimated Assessed/ Estimated Assessed/ Estimated to Total Fiscal Tax Capacity Actual Tax Capacity Actual Tax Capacity Actual Estimated Year Value Value Value Value Contribution Distribution Value Value Actual Value 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 2.30% 1991 9,901,542 536,614,500 210,051 4,258,500 (510,571) 3,290,306 12,891,328 540,873,000 2.38% 1992 9,503,314 538,522,400 207,255 4,398,000 (609,791) 3,067,799 12,168,577 542,920,400 2.24% 1993 9,226,574 537,840,800 207,309 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 11,380,636 546,264,900 2.08% 1995 8,884,233 546,047,800 220,961 4,803,500 (552,406) 2,603,671 11,156,459 550,851,300 2.03% (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. 168 CITY OF COLUMBIA HEIGHTS, MINNESOTA 'TAX RATES - PER $100 OF TAX CAPACITY Table 2 Years 1986 Through 1995 (Unaudited) ' Year (A) City School County Metro Other (B) Total 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 0.25686 0.69161 0.29899 0.04370 0.01570 1.30686 ' 1995 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. ' 169 CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY TAX LEVY Table 3 Years 1986 Through 1995 , (Unaudited) Fiscal City Levy General Police Fire Year Total Fund Relief Relief Library ' 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 - 19% 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 - - 390,348 390,348 ' 1995 3,587,209 3,196,861 - - 170 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA 'TAX LEVIES AND TAX COLLECTIONS Table 4 Years 1986 Through 1995 (Unaudited) 171 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 ' 1986 $1,395,303 $1,365,014 97.8% $15,494 $1,380,508 0.9894:1 $53,140 0.03808:1 1987 1,624,073 1,605,851 98.9% 41,633 1,647,484 1.0144:1 55,101 0.03393:1 1988 1,800,335 1,762,573 97.9% 18,395 1,780,968 0.9892:1 53,374 0.02965:1 1989 1,811,862 1,785,190 98.5% 13,601 1,798,791 0.9928:1 79,005 0.04360:1 1990 2,079,001 2,057,446 99.0% 3,249 2,060,695 0.9912:1 81,891 0.03939:1 1991 2,226,208 2,183,800 98.1% 31,274 2,215,074 0.9950:1 88,809 0.03989:1 ' 1992 2,406,707 2,360,410 98.1% 19,290 2,379,700 0.9888:1 109,305 0.04542:1 1993 2,453,972 2,400,802 97.8% 25,753 2,426,555 0.9888:1 123,285 0.05024:1 ' 1994 2,583,699 2,531,198 98.0% 16,381 2,547,579 0.9860:1 79,071 0.03060:1 ' 1995 2,608,699 2,571,649 98.6% 12,843 2,584,492 0.9907:1 40,418 0.01549:1 * 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. 171 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Years 1986 Through 1995 (Unaudited) Fiscal Year 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 * (A) 172 Table 5 The parking ramp at 4025 Van Buren Street NE was assessed; however, it was not included in this figure. 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. Deferred Special Assessments Current Current Collections Special Collected Balance Assessments % of Delinquent Assessments During at End of Due Amount Levy Collections (A) Delinquent Fiscal Period Fiscal Period $179,812 $99,460 55.3% $118,938 $110,886 $223,656 $697,945 201,700 121,911 60.4% 86,741 108,729 236,510 616,994 * 197,641 110,447 55.9% 50,534 149,795 143,565 1,149,826 * 218,860 142,076 64.9% 95,361 97,030 219,588 637,341 * 250,682 180,388 72.0% 74,581 109,928 309,544 591,415 * 252,190 134,588 53.4% 39,016 77,005 210,029 565,432 * 224,922 171,708 76.3% 55,385 73,962 54,141 416,229 * 104,941 71,722 68.3% 59,468 59,185 139,047 364,055 * 125,888 85,292 67.8% 39,267 60,229 102,127 304,970 159,282 86,587 54.4% 53,447 79,057 25,130 186,323 The parking ramp at 4025 Van Buren Street NE was assessed; however, it was not included in this figure. 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. CITY OF COLUMBIA HEIGHTS, MWNESOTA GOVERNMENTAL REVENUES BY SOURCE (A) Table 6 'GENERAL Years 1986 Through 1995 (Unaudited) ' Special Fiscal Assessments Licenses Inter- Charges for Fines and Miscellaneous Year Taxes (13) and Permits governmental Services Forfeitures Interest (C) Total ' 1986 $2,275,432 $ - $187,809 $2,978,923 $351,897 $108,158 $369,277 $80,057 $6,351,553 ' 1987 2,733,934 - 131,351 2,972,407 408,062 123,813 533,564 560,378 7,463,509 1988 2,924,601 - 163,384 3,738,312 516,018 112,254 596,581 1,179,042 9,230,192 1989 2,839,936 736,662 142,365 4,014,920 611,516 128,188 1,229,806 453,820 10,157,213 ' 1990 3,215,975 463,410 147,587 4,096,113 661,116 123,505 1,039,625 385,013 10,132,344 1991 3 7 71 164 945 3,249,669 ,474,483 2 7,1 424 546 116 386 395 986 238 615 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 ' 1995 4,167,428 - 176,290 3,755,162 383,646 89,138 321,971 83,954 8,977,589 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. 173 y CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (A) Years 1986 Through 1995 (Unaudited) Table 7 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. 174 Highways Parks Fiscal General Public and and Debt Other Year Government Safety Streets Sanitation Recreation Library Service _B_ Total 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 1995 1,395,395 2,550,980 938,819 73,815 977,813 405,873 1,424,633 833,417 8,600,745 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. 174 CITY OF COLUMBIA HEIGHTS, NDMMOTA CITY OFFICIALS Table 8 'PRINCIPAL Year Ended December 31, 1995 Name Official Title Mayor and Council ' Joseph Sturdevant Mayor Gary L. Peterson Councilmember Rita Petkopi Councilmember Donald G. Jolly Councilmember Robert W. Ruettimann Councilmember Meg Jones Councilmember elect Administration 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 ' Thomas Johnson Chief of Police Charles Kewatt Chief of Fire Evelyn Nygaard Building Inspector Lauren McClanahan Superintendent of Public Works Randy Quale Recreation Services Director ' M. Rebecca Loader Librarian City Streets Alleys 18.9 Miles of Sewers: Storm Sewers 33.6 Sanitary Sewers 59.0 Watermain Miles 66.1 Building Permits Issued: r CITY OF COLUMBIA HEIGHTS, N[DeMOTA 1987 556 MISCELLANEOUS STATISTICS Table 9 1989 473 December 31, 1995 Page 1 of 2 1991 484 (Unaudited) 515 1993 505 1994 1 1995 596 Estimated Construction Cost for Issued Permits: r Date of Incorporation March 14, 1898 4,215,085 Date of Adoption of City Charter July 21, 1921 1989 Form of Government Council- Manager r Fiscal Year Begins January 1 1992 Area of City 3.52 Square Miles ' Miles of Streets and Alleys: 4,522,438 1995 Trunk Highways 3.0 County 6.2 ' Al 8 City Streets Alleys 18.9 Miles of Sewers: Storm Sewers 33.6 Sanitary Sewers 59.0 Watermain Miles 66.1 Building Permits Issued: 1986 513 1987 556 1988 535 1989 473 1990 486 1991 484 1992 515 1993 505 1994 565 1995 596 Estimated Construction Cost for Issued Permits: 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 1995 4,927,970 176 CITY OF COLUMBIA HEIGHTS, MINNESOTA MISCELLANEOUS STATISTICS December 31, 1995 (Unaudited) Fire Protection: Table 9 Page 2 of 2 Number of Stations 1 Number of Employees: 2,968 Full -time 8 Part-time 1 Volunteer 24 Police Protection: Number of Stations 1 Number of Employees 34 Parks: City Parks 13 Playgrounds 11 County Park 1 Schools: Senior High 1 Junior High 1 Elementary 3 Parochial Elementary 1 Employees (as of December 31, 1995): Regular 116 Part-time and Temporary 236 352 Elections: Registered voters - Last City General Election 11,225 Number of Votes Cast - Last City General Election 3,498 Percentage of Registered Voters Voting 31.17% 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) 18,910 177 CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL TAXPAYERS Table 10 December 31, 1995 , (Unaudited) % of ' Total City Tax Capacity Tax Capacity Taxpayer Type of Business Value Value ' Kraus - Anderson, Inc. Construction $214,600 2.34% , Americana Bank Office Building 182,400 1.98% Columbia Park Properties Medical Building 154,482 1.68% ' Maylan Construction Retail (K -mart) 166,686 1.81% 149,772 1.63% ' Medtronics, Inc Medical Manufacturing Consolidated Realty of Minneapolis Apartments 116,651 1.27% ' Northern States Power Utility 114,338 1.24% Minnegasco Utility 102,266 1.11% , Lynde Investment Apartments 74,426 0.81% , Crestview Lutheran Home Apartments 86,986 0.94% Total Principal Taxpayers $1,362,607 14.81% Source of Data: Anoka County Auditor's Office ' r 178 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA 'COMPUTATION OF LEGAL DEBT MARGIN December 31, 1995 (Unaudited) Table 11 ' 1995/1996 1994/1995 Market Value $550,851,300 $546,264,900 Debt Limit Percentage (Note A) 2% 2% Debt limit 11,017,026 10,925,298 Amount of Debt applicable to debt limit: Total bonded debt 8,624,721 9,679,721 1 Less: Tax increment bonds 8,624,721 9,679,721 (Note B) Special assessment bonds - 'Total amount of debt applicable to debt limit 0 0 Legal debt margin $11,017,026 $10,925,298 ' 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. S. Obligations issued for the acquisition and betterment of public water works systems and public lighting, heating or power systems, and of any combination thereof or for any other public convenience from which a revenue is or may be derived. 6. Not applicable. ' 7. Amount of all money and face value of all securities held as a Debt Service Fund for the extinguishment of obligations other than those deductible under this subdivision. ' 8. All other obligations which under the provisions of law authorizing their issuance are not to be included in computing the net debt of the municipality. 179 CITY OF COLUMBIA HEIGHTS, MIlVNESOTA COMPUTATION OF DIRECT AND OVERLAPPING DEBT December 31, 1995 Table 12 , (Unaudited) i Amour Applicable to Net Percentage City of General Applicable Cohunbia Heights Obligation Debt to City Share of Debt Direct debt: ' City of Cohunbia Heights $8,624,721 100.0% $8,624,721 Overlapping debt: Anoka County 100,383,798 2.73% 2,740,478 Metropolitan Council 386,585,000 0.15% 572,146 Totals $495,593,519 $11,937,344 t 180 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA 'PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS Years 1986 Through 1995 (Unaudited) Table 13 Bank Deposits (B) 7,018,831 (C) 10,311,528 9,923,902 10,155,837 16,636,883 (D) 24,438,648 22,725,067 (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 t(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. 181 Property Value (A) Construction Fiscal Number Year Real Personal Total of Units Value 1986 $113,721,411 $1,500,988 $115,222,399 513 $13,269,300 1987 114,767,361 1,547,299 116,314,660 556 4,215,085 1988 116,314,660 1,679,868 117,994,528 535 8,916,756 1989 14,532,465 208,985 14,741,450 473 5,180,247 1990 10,022,891 212,505 10,235,396 486 5,198,200 1991 9,901,542 210,051 10,111,593 484 4,894,021 1992 9,503,314 207,255 9,710,569 515 2,373,433 1993 9,226,574 207,309 9,433,883 505 3,292,353 1994 9,021,129 207,658 9,228,787 565 4,522,438 1995 8,884,233 220,961 9,105,194 596 4,927,970 * Amount expressed in thousands. Table 13 Bank Deposits (B) 7,018,831 (C) 10,311,528 9,923,902 10,155,837 16,636,883 (D) 24,438,648 22,725,067 (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 t(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. 181 CITY OF COLUMBIA ]HEIGHTS, M1NNFSOTA RATIO OF NET GENERAL OBLIGATION BONDED DEBT Table 14 TO ASSESSED VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA Years 1986 Through 1995 (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 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 1995 18,910 11,156,459 8,624,721 1,422,979 7,201,742 64.55% 381 182 CITY OF COLUMBIA HEIGHTS, MINNESOTA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES Table 15 FOR GENERAL OBLIGATION BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES Years 1986 Through 1995 (Unaudited) Ratio of Total Debt Service to Total General General Fiscal Debt Governmental Governmental Year Principal Interest Service Expenditures Expenditures 1986 $280,000 $1,107,623 $1,387,623 $5,950,680 23.3% 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% 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% 1995 1,055,000 357,961 1,412,961 8,600,745 16.4% 183 CH 184 CITY OF COLUMBIA HEIGHTS, MIIHMESOTA SINGLE AUDIT AND OTHER REQUIRED REPORTS 185 CH 186 CITY OF COLUMBIA HEIGHTS, MIKMSOTA * AUT ES, REDPATH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report on Supplementga Supplement 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, 1995, and have issued our report thereon dated March 18, 1996 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 conducted for the purpose of forming an opinion on the general purpose financial statements of the City of Columbia Heights, Minnesota 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 18, 1996 187 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH 188 CITY OF COLUMBIA HEIGHTS, MEWESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE For The Year Ended December 31, 1995 Federal Funding Source/ Federal Pass Through Agency/ CFDA Program Title Number $649,592 City of Columbia Heights: 106,295 U.S. Department of Justice: 100,478 Direct: $0 Police Hiring Supplement 16.580 FAST COPS Grant 16.726 Federal Emergency Management Agency: 72,578 Passed- through Anoka County: $0 Emergency Management Assistance Grant 83.503 U.S. Department of Transportation: Passed - through Anoka County. State and Community Highway Safety (ATAC) Grant 20.600 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 (CDBG) 14.218 Home Investors Partnerships Program 14.239 Passed- through Metropolitan Council: Section 8 Housing Assistance Payments Program for Administrative Services 14.156 Direct: Comprehensive Improvement Assistance Program (CLAP) - Modernization Grant •* 14.852 Operating Subsidy 14.850 Section 8 Certificate and Housing Voucher Program 14.857 Total Federal Assistance * Major Program Comprehensive Improvement Assistance Program (CIAP) Summary. Modernization project MN105001: Grants awarded Grants advanced: Received in 1994 Received in 1995 Balance Grants awarded ' Grants expended/revenue recognized: 1994 1995 Balance 1995 Activity Revenue Recognized Expenditures $43,063 $43,063 7,006 7,006 5,125 5,125 4,890 4,890 315,748 315,748 34,188 34,188 30,644 30,644 130,805 130,805 51,931 51,931 26,192 26,192 $649,592 $649,592 FY 1993 FY 1994 Amendment Amendment #10 #11 $206,773 $76,377 106,295 5,957 100,478 59,054 $0 $11,366 $206,773 $76,377 134,195 6,785 72,578 58,226 $0 $11,366 189 CH 190 CITY OF COLUMBIA HEIGHTS, bEffiNESOTA ' 4rATAUTGES, REDPATH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report on Compliance With General Requirements Applicable to 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, 1995, and have issued our report thereon ' dated March 18, 1996. 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, 1995: 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. Material instances of noncompliance consist of failures to follow the general requirements that caused us to conclude that the misstatements resulting from those failures are material to the City of Columbia Heights, Minnesota's CDBG Program. The results of our tests of compliance disclosed the following material instance of noncompliance. ' Nonqualifying expenditures of the CDBG program totaling $37,355 were submitted and reimbursed by federal funds as detailed in the accompanying Schedule of Findings and Questioned Costs. ' 191 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 - FAX /426 -5004 o Member of HLB International CH 192 CITY OF COLUMBIA HEIGHTS, MINNESOTA We considered this material instance of noncompliance in forming our opinion on whether the City of Columbia Heights, Minnesota's 1995 general purpose financial statements are presented fairly, in all material respects, in conformity with generally accepted accounting principles, and this report does not affect our report dated March 18, 1996 on those general purpose financial statements. Except as referred to in the fourth paragraph, the results of our procedures to determine compliance indicate that, with respect to the items tested, the City of Columbia Heights, Minnesota complied, in all material respects, 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. However, the results of our procedures disclosed immaterial instances of noncompliance with those requirements, which are described in the accompanying Schedule of Findings and Questioned Costs. This report is intended for the information of the City of Columbia Heights, Minnesota's I 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 18, 1996 193 CH 194 CITY OF COLUMBIA HEIGHTS, MINNESOTA TAUTOE,, R DPAit H & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report on Compliance With Specific Requirements Applicable to Major 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, 1995, and have issued our report thereon dated March 18, 1996. 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, 1995. 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. As described in the accompany Schedule of Findings and Questioned Costs, the results of our audit procedures for the CDBG Program disclosed that the City of Columbia Heights, Minnesota received federal reimbursement of $37,355 for nonqualifying expenditures. The results of our audit procedures did not disclose any immaterial instances of noncompliance with the requirements referred to in the second paragraph. 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, M 4NESOTA In our opinion, except for those instances of noncompliance with the requirements applicable to the CDBG Program referred to in the fourth paragraph of this report and identified in the ' accompanying Schedule of Findings and Questioned Costs, the City of Columbia Heights, Minnesota complied, in all material respects, with the specific requirements referred to in the 1 second paragraph applicable to each of its major federal programs for the year ended December 31, 1995. 1 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 18, 1996 197 CH 198 CITY OF COLUMBIA HEIGHTS, M NNESOTA *TAUTGES, REDPAT & CO., LTD. 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, 1995, and have issued our report thereon dated March 18, 1996. We conducted our audit in accordance with generally accepted auditing standards and I 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. The management of the City of Columbia Heights, Minnesota, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments ' by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss ' from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of ' inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, 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 rthat the effectiveness of the design and operation of policies and procedures may deteriorate. In planning and performing our audit of the general purpose financial statements of the City of Columbia Heights, Minnesota, for the year ended December 31, 1995, we obtained an understanding of the internal control structure. With respect to the internal control structure, 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 in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements ' and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. 199 4810 White Bear Parkway - White Bear Lake, Minnesota 55110 o 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH 200 CITY OF COLUMBIA HEIGHTS, M MSOTA Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a 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 errors or irregularities in amounts that would be material in trelation 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. 1 We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above. However, we noted certain matters involving the internal control structure and its operation that we have reported to the management of the City of Columbia Heights, Minnesota, in a separate report dated April 17, 1996. ■ 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 18, 1996 201 CH 202 CITY OF COLUMBIA HEIGHTS, MINNESOTA ' *rAUTGES, REDPAlI H & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report on the Internal Control Structure Used in Administering Federal Financial Assistance Programs To the Honorable Mayor 1 and Members of the City Council Columbia Heights, Minnesota 1 We have audited the general purpose financial statements of the City of Columbia Heights, Minnesota, as of and for the year ended December 31, 1995, and have issued our report thereon dated March 18, 1996. 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 18, 1996. We conducted our audits in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of L 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, 1995, we considered the 1 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 18, 1996. 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 203 4810 White Bear Parkway - White Bear Lake, Minnesota 55110 0 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH 204 CITY OF COLUMBIA HEIGHTS, A94NESOTA of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies ' and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: General Requirements: Specific Requirements: Political Activity Allowability of Service Davis -Bacon Act Eligibility Civil Rights Special Reporting Requirements Cash Management Special Tests and Provisions 1 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, 1995, the City of Columbia Heights, Minnesota expended 69% 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, rin 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. 205 CH rm. CITY OF COLUMBIA HEIGHTS, MINNESOTA For federal programs administered b the City Housing and Redevelopment Authority (HRA), P gr Y t3' several instances were noted of federal reports being filed with incorrect information or not being filed at all as described in the accompanying Schedule of Findings and Questioned Costs. This situation was likely the result of significant BRA employee turnover during 1995, including the departure and subsequent vacancy of the Executive Director position. We recommend that one iHRA official, preferably the Executive Director, be charged with the responsibility of review and approval of all federal financial reports. This official should also be aware of all general and specific requirements applicable to all federal programs administered by the HRA. Federal police grant programs are administered by the police department and all federal expenditure reports relating to these grants are prepared and/or approved by the police chief. Because of the sometimes complex financial reporting and other requirements of federal programs, we recommend that the financial portion of the grant reports be completed with the assistance of the Finance Department. As an additional control to assure proper reporting and accounting of grants, we recommend that all federal financial reports be submitted to the City Finance Department for review and approval. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure 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 matter regarding HRA federal programs listed above is a material weakness, as defined above. These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the compliance of the City of Columbia Heights, Minnesota with requirements applicable to its major federal financial assistance programs for the year ended December 31, 1995, and this report does not affect our report thereon dated March 18, 1996. We also noted other matters involving the internal control structure and its operation, that we have reported to the management of the City of Columbia Heights, Minnesota in a separate report dated April 17, 1996. 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 18, 1996 1 207 CH 208 CITY OF COLUMBIA HEIGHTS, MINNESOTA I 0�-- AM UTOES, REDPATH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's 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, 1995, and have issued our report thereon dated March 18, 1996. 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. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. 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, TAUTGES, REDPATH & CO., LTD. ICertified Public Accountants March 18, 1996 209 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 0 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH 210 CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA Schedule of Findings and Questioned Costs Year Ended December 31, 1995 Current Year Findings DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: CDBG Program, CFDA No. 14.218, passed through Anoka County 1) Condition and Criteria: Two expenditures were reimbursed twice and one nonqualifying expenditure was reimbursed as follows: Expenditures reimbursed twice: 1) Check #51004, dated 1/23/95, for subrecipient payment to ACCAP $4,078.88 2) Check #53175, dated 5/30/95, partial payment on A.D.A. improvements 30,726.03 Nonqualifying expenditure: 1) Check #53175, dated 5/30/95, miscellaneous park improvements 2,550.00 $37,354.91 Because of these errors, certain qualifying expenditures were not submitted because program budgets had been exceeded. Effect: Although these items were approved and reimbursed by Anoka County, they are nonqualifying and should be refunded to the County. Upon notification of this situation the City recorded a liability in the amount of $37,354.91 on its December 31, 1995 Balance Sheet for the refund to be made in 1996. Causer Procedures are prescribed for supervisory review and approval of reimbursement requests before they are submitted but these items apparently were not reviewed accurately. The official responsible for these reimbursements is no longer employed by the grantee. Recommendation: These amounts should be reimbursed to Anoka County and the prescribed procedures for supervisory review and approval should be adhered. Unsubmitted qualifying expenditures should now be submitted for reimbursement. Questioned Costs $37,355 211 4)] 212 CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA Schedule of Findings and Questioned Costs Year Ended December 31, 1995 Questioned Current Year Findings Costs Grantee Response: These items will be refunded to Anoka County in 1996. Furthermore, the official who is now responsible for submitting these expenditures has been apprised of this condition. All qualifying expenditures will be submitted for reimbursement. Section 8 Certificate and Housing Voucher Program CFDA No. 14.857, direct from HUD 2) Condition: The grantee has not allocated interest earnings to advanced funds and an administrative fee reserve has not been established. Criteria: The HUD Consolidated Annual Contributions Contract requires that an administrative fee reserve be established and that interest earned constitutes program receipts. Effect: Uncertain Cause: The grantee's accounting method has been to commingle these funds within a fund which includes other activities. Additionally, the responsible official has not ensured that interest is being allocated to these funds. Recommendation: This program should be assigned its own fund in the grantee's accounting system and procedures should be established to ensure the proper allocation of interest. Grantee Response: The Section 8 program has been assigned to a separate fund in the accounting system. Advanced funds and allocated interest earnings have been transferred to the new fund. In the future there will be no commingling of funds and interest will be properly allocated. $0 213 (D CITY OF COLUMBIA HEIGHTS, MINNESOTA 214 I CITY OF COLUMBIA HEIGHTS, MINNESOTA Schedule of Findings and Questioned Costs Year Ended December 31, 1995 Questioned Current Year Findings Costs 3) Condition: Required federal reports have not been submitted. Criteria: HUD requires submission of HUD Forms 52681 and 52595 within 45 days of the grantee's fiscal year end (December 31) Effect: Unknown Cause: The grantee's employee who was overseeing this program on an interim basis was not familiar with the specific reporting requirements. Recommendation: The grantee official responsible for submitting these reports should be familiar with the reporting requirements. Grantee Response: The required HUD Forms 52681 and 52595 have been received by the Community Development Department staff on April 15, 1996. The forms have been completed and forwarded to HUD as required on April 17, 1996. The responsible employee and Community Development Director have been informed and apprised of proper reporting requirements to insure complete and timely submission of the report forms. In the future, these forms will be submitted within 45 days of the fiscal year end, December 31. Section 8 Housing Assistance Payments Program for Administrative Services, CFDA No. 14.156, passed through Metropolitan Council. 4) Condition: Required quarterly reports were not filed. Criteria: The contract with Metropolitan Council requires the submission of certain quarterly reports. Effect: Metropolitan Council stopped making monthly payments because of the noncompliance. Cause: The grantee employee responsible for this program was not familiar with the reporting requirements. $0 $0 215 CITY OF COLUMBIA HEIGHTS, MINNESOTA a 1 1 u 216 1 I CITY OF COLUMBIA HEIGHTS, MINNESOTA Schedule of Findings and Questioned Costs Year Ended December 31, 1995 Questioned Current Year Findings Costs Recommendation: All delinquent reports should be filed. The employee responsible for this program should become familiar with the reporting requirements. Grantee Response: The Section 8 Housing Assistance Payments Program for Administrative Services reporting requirement has been reviewed. The responsible grantee employee(s) were first notified of the failure to submit the required quarterly reports on January 4, 1996. The required quarterly reports have been prepared and submitted to the Metropolitan Council as required by contract. We are awaiting receipt of funds from the Metro BRA. The responsible grantee employee and Community Development Director have reviewed contract requirements stipulating submission of quarterly reports for the program and will insure continued compliance with submission of said reporting requirements in a timely manner. CIAP Program, CFDA No. 14.852, direct from HUD. 5) Condition: A reimbursement was made for expenditure(s) for which the grantee could not provide specific documentation, although total qualifying expenditures exceeded the amount submitted. Effect: This item could be disallowed. Cause: Procedures which are prescribed for filing documentation were not adhered. Recommendation: The specific identification and documentation for this item should be located. Also, prescribed documentation procedures should be adhered. Grantee Response: A request for reimbursement form was filled out when it should not have been. No back up documentation explaining this amount was found. Another reimbursement for $9,294.18 for payment #10 does have all of the appropriate information and is a valid expense, however, the request for reimbursement was never made. It has been resolved by staff that the amount of $8,159 that was received is part of payment #10 and should not have been received. $8,159 217 CITY OF COLUMBIA HEIGHTS, bEMMOTA 218 I CITY OF COLUMBIA HEIGHTS, MINNESOTA Schedule of Findings and Questioned Costs Year Ended December 31, 1995 Questioned Current Year Findings Costs The amount of $8,159 that was incorrectly requested and received will be returned to HUD. At that same time the amount of $9,294.18, in which all appropriate documentation is together and correct, will be requested for reimbursement from HUD. Staff will verify the account status upon receipt of the reimbursement. The record system will be reviewed and the prescribed documentation ' procedures will be adhered to in the future. DEPARTMENT OF JUSTICE: FAST COPS Grant CFDA No. 16.726 direct from Department of Justice grant period 3/1/95 - 2/28/98 6) Condition and Criteria: The grant document requires that 25% of the entire three year program costs be the responsibility of the grantee and that the federal share decrease each of the three years of the grant period. In 1995, the grantee requested only a 50% reimbursement for eligible expenditures. Because the federal percentage must decrease each of the next two years, the grantee will not realize the full amount of the federal award. $0 Cause: The grantee's employee responsible for filing the reimbursement requests was not aware of the ramifications of requesting only 50% in the first year. Recommendation: The request(s) for reimbursement previously filed should be amended using an appropriate federal matching percentage. Grantee Response: The request for reimbursement previously filed for 1995 will be amended and refiled to request the appropriate federal matching percentage. Internal controls have been revised to ensure compliance in the future. ITotal Questioned Costs $45.514 219 CH 220 CITY OF COLUMBIA HEIGHTS, DIINMSOTA