Loading...
HomeMy WebLinkAbout1996 CAFRCOMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF COLUMBIA HEIGHTS STATE OF MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 1996 Prepared By: Finance Department CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Reference Page Number L INTRODUCTORY SECTION Principal City Officials 3 Organizational Chart 5 Letter of Transmittal 7 ICertificate 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 r Combining. 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, MINNESOTA TABLE OF CONTENTS Reference Page Number Special Revenue Funds: Combining Balance Sheet Statement 10 81 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 11 85 Statement of Revenues, Expenditures and Changes in Statement 28 106 Fund Balance - Budget and Actual: Municipal State Aid Street Fund Statement 12 88 Cable Television Fund Statement 13 89 Paratransit Fund Statement 14 90 D.A.R.E. Program Statement 15 91 Library Fund Statement 16 92 Project Pride Statement 17 93 Federal Police Grant Statement 18 94 FAST COPS Grant Statement 19 95 Community Development Statement 20 96 Local Law Enforcement Block Grant Statement 21 97 Statement of Revenues, Expenditures and Changes in Fund Balance: Statement 36 126 Recreation Contributed Projects Statement 22 98 Contributed Projects Statement 23 99 Parking Ramp Statement 24 100 Confiscated Properties Statement 25 101 Housing Mortgage Statement 26 103 Economic Development Authority (Component Unit): Combining Balance Sheet: Statement 27 104 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 28 106 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Anoka County CDBG Statement 29 108 Parkview Villa North Statement 30 109 Parkview Villa South Statement 31 110 Debt Service Funds: Combining Balance Sheet Statement 32 112 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 33 113 Capital Project Funds: Combining Balance Sheet Statement 34 117 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 35 121 Enterprise Funds: Combining Balance Sheet Statement 36 126 Combining Statement of Revenues, Expenses and Changes in Retained Earnings Statement 37 127 Combining Statement of Cash Flows Statement 38 128 CITY OF COLUMBIA HEIGHTS MINNESOTA TABLE OF CONTENTS Reference Page Number Water Utility Fund: Balance Sheet Statement 39 129 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 40 130 Statement of Cash Flows Statement 41 131 Sewer Utility Fund: ' Balance Sheet Statement 42 132 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 43 133 Statement of Cash Flows Statement 44 134 Refuse Utility Fund: Balance Sheet Statement 45 135 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 46 136 Statement of Cash Flows Statement 47 137 Liquor Fund: Balance Sheet Statement 48 138 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 49 139 Statement of Cash Flows Statement 50 140 Internal Service Funds: Combining Balance Sheet Statement 51 142 Combining Statement of Revenues, Expenses and Changes in Retained Earnings Statement 52 144 ' Combining Statement of Cash Flows Statement 53 146 Central Garage Fund: Balance Sheet Statement 54 148 ' Statement of Revenues, Expenses and Changes in Retained Earnings Statement 55 149 Statement of Cash Flows Statement 56 150 Energy Management Fund: Balance Sheet Statement 57 151 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 58 152 Statement of Cash Flows Statement 59 153 Data Processing Fund: Balance Sheet Statement 60 154 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 61 155 Statement of Cash Flows Statement 62 156 tInsurance Fund: Balance Sheet Statement 63 157 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 64 158 Statement of Cash Flows Statement 65 159 f Compensated Absences Fund: CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Reference Page Number Balance Sheet Statement 66 160 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 67 161 Statement of Cash Flows Statement 68 162 Trust and Agency Funds: Table 1 180 Fiduciary Funds: Table 2 181 Combining Balance Sheet Statement 69 164 Expendable Trust Funds: Table 4 183 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 70 165 Fiduciary Funds: Table 6 185 Combining Statement of Changes in Assets and Liabilities - All Agency Funds Statement 71 166 General Fixed Assets Account Group: Table 8. 187 Comparative Schedule of General Fixed Assets - By Source Statement 72 168 Schedule of Changes in General Fixed Assets - By Function and Activity Statement 73 169 Schedule of General Fixed Assets - By Function and Activity Statement 74 170 General Long -Term Debt Account Group: Schedule of General Long -Term Debt Statement 75 172 Schedule of Debt Service Requirements to Maturity Statement 76 173 Supplementary Financial Information Combining Schedule of Bonds Payable Exhibit 1 176 III. STATISTICAL SECTION Assessed Value, Tax Capacity, and Estimated Actual Value of all Taxable Property - 1987 Through 1996 Table 1 180 Tax Rates - Years 1987 Through 1996 Table 2 181 City Tax Levy - Years 1987 Through 1996 Table 3 182 Tax Levies and Tax Collections - Years 1987 Through 1996 Table 4 183 Special Assessment Levies and Collections - Years 1987 Through 1996 Table 5 184 General Governmental Revenues By Source - Years 1987 Through 1996 Table 6 185 General Governmental Expenditures By Function - Years 1987 Through 1996 Table 7 186 Principal City Officials Table 8. 187 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Miscellaneous Statistics Principal Taxpayers Computation of Legal Debt Margin Computation of Direct and Overlapping Debt Property Value, Construction and Bank Deposits - Years 1987 Through 1996 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita - Years 1987 Through 1996 Ratio of Annual Debt Service Expenditures For General Obligation Bonded Debt to Total General Governmental Expenditures - Years 1987 Through 1996 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 Compliance in Accordance with Government Auditing Standards Independent Auditor's Report on the Internal Control Structure in Accordance With Government Auditing Standards 1 Independent Auditor's Report on the Internal Control Structure Used in Administering Federal Financial Assistance Programs Schedule of Findings and Questioned Costs Reference Page Number Table 9 188 Table 10 190 Table 11 191 Table 12 192 Table 13 193 Table 14 194 Table 15 195 199 201 203 205 209 211 215 221 I. INTRODUCTORY SECTION CH CITY OF COLUMBIAHEIGHTS, MMiNESOTA CITY OF COLUMBIA HEIGHTS, NIINNESOTA PRINCIPAL CITY OFFICIALS December 31, 1996 CITY COUNCIL Joseph Sturdevant, Mayor Gary L. Peterson Councilmember Meg Jones Councilmember Donald G. Jolly Councilmember Robert W. Ruettimann Councilmember CITY MANAGER Walter Fehst FINANCE DEPARTMENT William J. Elrite, Finance Director June V. Johnston, Assistant Finance Director 1 f f Gary Braaten, Accounting Coordinator f 1 1 3 CH CITY OF COLUMBIAHEIGHTS, MMESOTA City of Columbia Heights Organizational Chart Mayor. Joseph Sturdevant Councilmembers: Donald G. Jolly Meg Jones Gary L. Peterson Robert W. Ruettimann City Manager: Walter Fehst POLICE (Administered by Mayor) Police Chief: TTromasJohnson Secretary II Clerk- Typist II Police Captain Patrol Sergeants (3) Patrol Officers (20) Comm. Service Officers (3) Sr. Records Technician Secretary II -A (2) FIRE Fire Chief: CharlesKewalt Secretary II (PT) Assistant Fire Chief Firefighters (6) Volunteer Firefighters (23) LIBRARY Library Director: M. Rebecca Loader Clerk- Typist II (2) Library Supervisor (6 PT) Page (8 PT) Choreperson (PT) Adult Service Specialist Children's Librarian PUBLIC WORKS Public Works Director /City Engineer: Mark Winson Secretary II -A Assistant City Engineer Engineering Technician IV Engineering Technician III Engineering Technician II Public Works Superintendent Foreman (3) Maintenance III (1) Maintenance II (9) Maintenance I (6) Foreman - Vehicle Maintenance Maintenance III - Mechanic Maintenance III - Bodyman/Painter Admin. Assistant- Public Works Clerical/Purchasing Clerk ADMINISTRATION City Manager's Secretary Council Secretary* Asst. To City Manager Special Projects Coordinator Assessing Accounting Clerk II Clerk- Typist II (PT) RECREATION Recreation Director Clerk-Typist II Senior Citizen Coordinator Recreation Program Coordinator (2) Head Custodian Custodian II (5 PT) Custodian I (1 PT) Commissions & Boards: Charter EDA Police & Fire Civil Service Insurance Traffic Telecommunications Planning & Zoning Human Services Park & Recreation Merit Library Science, Technology & Energy FINANCE Finance Director /City Clerk/Treasurer: WilhamElrite 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/Reoeptionist Meter Readers (1 FT /1 PT) Liquor Operations Manager Asst. Operations Managers (2) Liquor Store Supervisor (4) Retail Clerks (26 PT) MIS Coordinator COMMUNITY DEVELOPMENT Community Development Director: Kenneth Anderson Secretary II Secretary Building Inspector Housing Coordintor Zoning/Grant Coordinator Occupancy SpecJFam. Self -Suif Coord. (PT) *Also serves in the capacity of Deputy City Clerk under the City Manager. 5 CH CITY OF COLUM UBEIGHTS, MRiNESOTA CITY OF COLUMBIA HEIGHTS (I� 590 40TH AVENUE N.E., COLUMBIA HEIGHTS, MN 55421-3878 (612) 782 -2800 TDD 782 -2806 April 24, 1997 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, 1996 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) and the Economic Development Authority (EDA) are included in the reporting entity as component units of the City of Columbia Heights due to the fact that the Mayor and City Council represent a majority of the governing board of the authorities and the City is in a relationship of financial benefit or burden with the authorities. THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES 7 EQUAL OPPORTUNITY EMPLOYER J F� t CITY OF COLUMBIAHEIGHTS, MINNESOTA I I it H 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. Single family, moderately priced homes were built on the vacant lots in 1995 and 1996. The City has continued to purchase substandard housing on a scattered site basis in order to continue to improve housing conditions in the City of Columbia Heights. A comprehensive plan for street improvements throughout the City has also been developed. Street reconstruction has been scheduled to begin in 1997. During 1996, the City began working with Medtronic Corporation, a major employer in the City of Columbia Heights, on a major expansion project. Part of this expansion project involved the transfer and purchase of park land to Medtronic for their expansion. This project will result in the creation of more jobs for the City. 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 rresult of effective financial management, the City continues to maintain a strong financial position and that trend is expected to continue. MAJOR INITIATIVES For the Year In January of 1996, the City Council adopted an enabling resolution which established the Columbia Heights Economic Development Authority (EDA). The EDA was established to provide additional statutory authority to perform economic development activities that are more encompassing than the powers available to the Housing and Redevelopment Authority (BRA). Moreover, all of the powers of the BRA were retained by the EDA. Subsequently, certain projects and programs will be transferred from the HRA to the EDA. In 1996, an additional $10,000 was budgeted by the City Council for a Back to the Parks Program. This funding allowed the Recreation Department to offer an expanded array of special events and programs for the community. New programs and events offered in 1996 included: Arts in the Parks Program (seven concerts held at the Huset Park band shell); Adopt -a -Park Program; and family trips. Additional special events will be scheduled in the future. 9 For the Future 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. The comprehensive plan for street improvement throughout the City has been developed. Construction is scheduled to begin in 1997 on the much - needed street rehabilitation program. Department Focus Each year the City focuses attention on the efforts and accomplishments of a selected department. This year the Liquor Operation has been selected. The City of Columbia Heights operates three off -sale liquor stores under the direction of Phill Suckerman, Liquor Operations Manager. For 1996, the three stores had net income from operations of $356,005. Of this amount, $254,321 was transferred to tax- supported governmental funds. Funding from Liquor Operations is used for fixed asset replacement and improvements to infrastructure. It also funds the DARE Program and programs in the General Fund. Columbia Heights Liquor Operations rank near the top in profitability of municipal -owned liquor stores in the State of Minnesota. This has been achieved by management carefully monitoring expenses, maintaining strong margins and promoting highly profitable products. The City's Liquor Operations are a vital part of maintaining lower property tax increases in the City of Columbia Heights. Mr. Suckerman and his staff are providing an excellent service for the citizens. By providing a pleasant atmosphere and a good selection of merchandise in the store at reasonable prices, profits continue to be stable, and they are used in meaningful ways for the community. 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 is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed the benefits likely to be derived; and 2) the valuation of costs and benefits requires estimates and judgments by management. In addition, the government maintains extensive budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the general fund and certain special revenue funds are included in the annual appropriated budget. The level of budgetary control, the level at which 10 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 1996 totaled $10,443,313, which is a decrease of 5.41% from 1995. Property taxes received for the City produced 36.8% of general revenues compared to 38.3% 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 1995 Taxes $3,840,481 37% ($392,955) Special assessments 165,850 2% 43,522 Licenses and permits 223,758 2% 47,468 Intergovernmental 4,139,604 40% (216,962) 1 Charges for services 879,601 8% 110,861 Fines and forfeitures 125,543 1 % 36,405 Interest 610,982 6% (67,132) Other revenue 457,494 4% (158,193) Total revenues $10,443,313 100% ($596,986) The decrease in taxes was due to a revaluation of tax increment property owned by Zaidan Holdings. The decrease in intergovernmental revenue is due to a decreased amount received for State street construction and repairs. The City undertook fewer State street construction projects in 1996. 11 The expenditures for City general government functions for 1996 totaled $10,905,821, a decrease of 1% from 1995. The total expenditures for major City functions and their changes from last year are shown below: Amount of Increase Percent (Decrease) Expenditure Function Amount of Total from 1995 General government $1,354,292 12% ($41,103) Public safety 2,597,866 24% 46,886 Public works 965,677 9% 26,858 Sanitation 124,580 1 % 50,765 Parks and recreation 1,055,083 10% 77,270 Library 409,047 4% 3,174 Other & contingencies 1,238,821 11% (325,960) Capital outlay 1,684,567 15% 16,101 Debt service 1,475,888 14% 51,255 Total expenditures $10,905,821 100% __($94,754) The major decrease was in the area of other & contingencies. This is due to the fact that the City did fewer and less costly construction projects on state aid streets. General Fund Balance The fund balance of the General Fund increased by $248,126 or 6.9 %. The total fund balance of $3,839,350 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 $6,011,907 in 1996. This resulted in a total net operating income of $356,005. Water and refuse utilities experienced operating income increases during 1996. The sewer utility experienced an operating loss during the year. The Water Utility Fund experienced an operating income of $58,508 during the year. The Refuse Utility Fund experienced an operating income of $70,542 and the Sewer Utility Fund experienced an operating loss of $8,917 during 1996. During the year, the City Council designated funds from the sewer and water utilities for capital equipment replacement and construction. 12 Internal Service Funds I The City maintains five Internal Service Funds - the City Garage Fund, the Energy Management Fund, the Data Processing Fund, the Insurance Fund and the Compensated Absences Fund. The Central Garage Fund is a self sustaining fund providing service to other departments within the tCity and for which user fees are paid by the using department. In 1996, the Central Garage Fund had an operating income of $24,571. The Energy Management Fund was established to account for energy maintenance and improvements to 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. The Compensated Absences Fund was established to account for terminal leave benefits for governmental funds. This fund was established in 1996 and the related liability was removed from the general long term debt group to this fund for accounting purposes. Trust and Agency Funds Agency Funds are used to account for assets held by the City in an agency capacity for individuals, private organizations, other governments, or other funds. The City has Agency Funds for deferred compensation, permit surcharge, and escrow. Trust Funds are used to account for assets held by the City in a trustee capacity. The City has expendable trust funds for 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 5.78 %. The City's investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, deposits were either insured by federal depository insurance or collateralized. 1 Debt Administration At December 31, 1996, the City has three debt issues outstanding. These issues included $7,469,721 of General Obligation Tax Increment Bonds. 13 Risk Management The City maintains commercial insurance coverage for liability, property, liquor liability, and workers' compensation. As previously stated, the City maintains an Internal Service Fund for insurance. The Insurance Fund maintains a reserved balance to provide funds 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, 1995. 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 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, ffA-�- William J. Elrite Finance Director June V. Johnston Assistant Finance Director 15 16 CITY OF COLUMBIAHEIGHTS, MINNESOTA 1 Certificate of � Achievement for Excellence in Financial � Reporting Presented to City of Columbia Heights, Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 1995 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. E OfFj��9 � N ST UNITED ST s � ATES y � W ( AND N V CANADA Fi� Preside t V CORPORA /s SEAL CNICR60 % Executive Director 17 CH 18 CITY OF COLUMMIAB EIGHTS, M NNESOTA II. FINANCIAL SECTION 19 CH 20 CITY OF COLUMBIA HEIGHTS, D914NESOTA OTAUT-GES, CERTIFIED PUF_3LiC 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, 1996 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 GovernmentAuditing 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, 1996, 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 GovernmentAuditing Standards, we have also issued a report dated April 17, 1997 on our consideration of the City of Columbia Heights, Minnesota's internal control structure and a report dated April 17, 1997 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. April 17, 1997 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, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1996 With Comparative Totals For December 31, 1995 Assets Cash and investments Receivables: Accounts Special assessments Taxes Interest Loans Due from other governmental units Due from other funds 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 $4,215,390 $3,834,407 $1,851,697 $5,185,627 24 The accompanying notes are an integral part of these financial statements. Governmental Fund Types Special Debt Capital General Revenue Service Project $3,672,775 $2,139,930 $1,687,328 $4,706,595 5,815 21,186 - 18,000 - - - 213,198 50,488 1,028 152,770 - 25,568 15,689 11,599 38,837 - 303,695 - 8,904 51,203 315,992 - 29,493 394,257 948,684 - - 15,284 4,090 - - - 84,113 - 170,600 $4,215,390 $3,834,407 $1,851,697 $5,185,627 24 The accompanying notes are an integral part of these financial statements. Statement 1 Page 1 of 2 Proprietary Fiduciary Fund Types Fund Type Account Groups Totals ' Internal Trust and General General Long- (Memorandum Only) Enterprise Service Agency Fixed Assets Term Debt 1996 1995 $3,904,685 $1,757,271 $559,925 $ - $ - $18,428,509 $18,129,962 775,926 228 216 - - 821,371 864,659 - - 213,198 269,503 = = = 204,286 220,883 34,987 14,729 3,193 - - 144,602 140,238 _ - 312,599 299,023 ' 515, 041 _ = = 911,729 376,254 940,921 - - - - 2,283,862 2,199,306 - _ _ _ _ - 65,000 ' 588 27,967 - 47,929 153,360 3,217,308 _ = 3,217,308 2,659,907 629,466 85,454 - - - 714,920 694,926 - - 254,713 278,718 ' 4,011,879 650,536 18,900,153 = 23,562,568 23,058,051 - - - - 843,287 843,287 1,422,979 - - - - 7,863,381 7,863,381 8,196,107 437,967 _ = 13,678 ' $10,813,493 $2,536,185 $3,780,642 $18,900,153 $8,706,668 $59,824,262 $59,480,521 IThe accompanying notes are an integral part of these financial statements. 25 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1996 With Comparative Totals For December 31, 1995 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 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 Total liabilities, equity and other credits 15,284 Governmental Fund Types - 170,600 _ Special Debt Capital General Revenue Service Project 843,287 3,949,860 $59,356 $76,837 $9,625 $5,342 174,055 22,522 - 2,840 - - - 3,874 80,721 31,625 - - - 417,472 854,379 1,012,011 61,908 815,743 144,406 211,700 - 17,622 - - - 231 - - 376,040 1,382,052 1,235,767 1,008,410 15,284 575,756 - 170,600 3,282,151 623,155 843,287 105,231 541,915 1,253,444 - 3,674,029 3,839,350 2,452,355 843,287 3,949,860 $4,215,390 $3,834,407 $1,851,697 $5,185,627 26 The accompanying notes are an integral part of these financial statements. Statement 1 Page 2 of 2 Proprietary Fiduciary Fund Types Fund Type Account Groups Totals Internal Trust and General General Long- (Memorandum Only) Enterprise Service Agency Fixed Assets Term Debt 1996 1995 $292,547 $31,970 $87,539 $ - $ - $563,216 $588,838 97,331 25,366 - _ 322,114 249,373 1,723 _ 5,597 16,541 _ _ _ _ _ - 49,678 385,856 - - 385,856 485,404 ' = 3,217,308 = 3,217,308 2,659,907 119,346 - - - - 231,692 326,029 - - 2,283,862 2,199,306 _ - 1,233,757 1,042,842 _ = = 7,469,721 7,469,721 8,624,721 - 2,387 - - - 2,387 3,002 _ _ 1,236,947 1,236,947 994,365 ' 3,744 _ 3,619 = 24,985 26,905 _ _ _ _ - 231 - 462,877 - 462,877 437,967 ' - - 1,609 - - 1,609 33,399 51401 908,456 3,310,075 0 8,706,668 17,442,159 17,738,277 1,311,359 188,849 - - - 1,500,208 1,557,041 - - - 18,900,153 - 18,900,153 18,562,206 E2,750,029 1,119,746 - - - 3,869,775 3,704,558 6,237,414 319,134 - - - 6,556,548 5,974,962 ' - - _ - - 761,640 744,012 - - 456,433 - - 5,310,257 5,825,862 - - 14,134 - 5,483,522 5,373,603 ' 10,298,802 1,627,729 470,567 18,900,153 0 42,382,103 41,742,244 $10,813,493 $2,536,185 $3,780,642 $18,900,153 $8,706,668 $59,824,262 $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 For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 Other financing sources (uses): Operating transfers in 402,559 431,963 Operating transfers (out) (614,837) (453,674) Operating transfers in from component unit - Operating transfers (out) to primary government - Total other financing sources (uses) (212,278) (21,711) Net increase (decrease) in fund balance 200,167 148,413 Fund balance - January 1 3,591,224 2,351,901 Residual equity transfers 47,959 (47,959) Fund balance - December 31 $3,839,350 $2,452,355 28 The accompanying notes are an integral part of these financial statements. Governmental Fund Types Special Revenues: General Revenue Taxes $2,403,017 $486,040 Special assessments - - Licenses and permits 223,758 - Intergovernmental 3,219,370 920,234 Charges for services 310,756 568,845 Fines and forfeits 125,543 - interest 164,033 122,949 Other revenues 34,595 133,011 Total revenues 6,481,072 2,231,079 Expenditures: Current: General government 1,354,292 - Public safety 2,597,866 - Public works 965,677 - Sanitation 124,580 - Parks and recreation 1,023,952 31,131 Library - 409,047 Other - 1,236,561 Contingencies 2,260 - Capital outlay - 384,216 Debt service - - Total expenditures 6,068,627 2,060,955 Revenues over (under) expenditures 412,445 170,124 Other financing sources (uses): Operating transfers in 402,559 431,963 Operating transfers (out) (614,837) (453,674) Operating transfers in from component unit - Operating transfers (out) to primary government - Total other financing sources (uses) (212,278) (21,711) Net increase (decrease) in fund balance 200,167 148,413 Fund balance - January 1 3,591,224 2,351,901 Residual equity transfers 47,959 (47,959) Fund balance - December 31 $3,839,350 $2,452,355 28 The accompanying notes are an integral part of these financial statements. ' Statement 2 Fiduciary Fund Type Debt Capital Expendable Totals (Memorandum Only) I Service Project Trust 1996 1995 $951,424 $ $ - $3,840,481 $4,233,436 - 165,850 - 165,850 122,328 - 223,758 176,290 _ _ 168,212 4,307,816 4,527,797 - - 44,441 924,042 803,449 - - - 125,543 89,138 ' 74,419 249,581 20,485 631,467 694,777 - 289,888 - 457,494 615,687 1,025,843 705,319 233,138 10,676,451 11,262,902 ' - - - 1,354,292 1,395,395 - - - 2,597,866 2,550,980 - - - 965,677 938,819 - - - 124,580 73,815 1,055,083 977,813 - - - 409,047 405,873 - - 134,595 1,371,156 1,671,987 2,260 791. - 1,300,351 - 1,684,567 1,668,466 1,475,888 - - 1,475,888 1,424,633 1,475,888 1,300,351 134,595 11,040,416 11,108,572 (450,045) (595,032) 98,543 (363,965) 154,330 1,459,268 589,068 90,000 2,972,858 2,459,161 ' (1,459,268) (71,692) (2,599,471) (2,004,954) 187,004 - - - - (187,004) ' 0 517,376 90,000 373,387 454,207 ' (450,045) (77,656) 188,543 9,422 608,537 1,422,979 3,897,869 282,024 11,545,997 10,937,460 ' (129,647) 129,647 - - - $843,287 $3,949,860 $470,567 $11,555,419 $11,545,997 ' The accompanying notes are an integral part of these financial statements. 29 CITY OF COLUMBIA HEIGHTS, MINNESOTA 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, 1996 Fund balance - December 31 $3,839,350 30 The accompanying notes are an integral part of these financial statements. General Over (under) Budget Actual Budget Revenues: Taxes $2,340,393 $2,403,017 $62,624 Licenses and permits 131,450 223,758 92,308 Intergovernmental 3,203,494 3,219,370 15,876 Charges for services 350,661 310,756 (39,905) Fines and forfeits 90,000 125,543 35,543 Interest 160,000 164,033 4,033 Other revenues 40,680 34,595 (6,085) Total revenues 6,316,678 6,481,072 164,394 Expenditures: Current: General government 1,480,845 1,354,292 (126,553) Public safety 2,634,778 2,597,866 (36,912) Public works 1,059,972 965,677 (94,295) Sanitation 151,808 124,580 (27,228) Parks and recreation 1,129,793 1,023,952 (105,841) Library - Other Contingencies - 3,907 - 2,260 (1,647) Total current expenditures 6,461,103 6,068,627 (392,476) Capital outlay - - Total expenditures 6,461,103 6,068,627 (392,476) Revenues over(under)expenditures (144,425) 412,445 556,870 Other financing sources (uses): Operating transfers in 409,866 402,559 (7,307) Operating transfers (out) (533,234) (614,837) (81,603) Total other financing sources (uses) (123,368) (212,278) (88,910) Net increase (decrease) in fund balance ($267,793) 200,167 $467,960 Fund balance - January 1 3,591,224 Residual equity transfers 47,959 Fund balance - December 31 $3,839,350 30 The accompanying notes are an integral part of these financial statements. Snecial Revenue 3,175 1,805 Over 424,197 409,047 (under) Budget Actual Budget $485,768 $413,768 ($72,000) 961,092 723,600 (237,492) 549,877 491,653 (58,224) 49,800 79,693 29,893 201,570 77,492 (124,078) 2,248,107 1,786,206 (461,901) 3,175 1,805 (1,370) 424,197 409,047 (15,150) 1,593,569 917,137 (676,432) 2,020,941 1,327,989 (692,952) 521,755 370,019 (151,736) 2,542,696 1,698,008 (844,688) (294,589) 88,198 382,787 194,559 349,902 155,343 (207,946) (230,760) (22,814) (13,387) 119,142 132,529 ($307,976) 207,340 $515,316 1,189,023 (47,959) $1,348,404 Statement 3 Totals (Memorandum Onl 1996 Over (under) Budget Actual Budget $2,826,161 $2,816,785 ($9,376) 131,450 223,758 92,308 4,164,586 3,942,970 (221,616) 900,538 802,409 (98,129) 90,000 125,543 35,543 209,800 243,726 33,926 242,250 112,087 (130,163) 8,564,785 8,267,278 (297,507) 1,480,845 1,354,292 (126,553) 2,634,778 2,597,866 (36,912) 1,059,972 965,677 (94,295) 151,808 124,580 (27,228) 1,132,968 1,025,757 (107,211) 424,197 409,047 (15,150) 1,593,569 917,137 (676,432) 3,907 2,260 (1,647) 8,482,044 7,396,616 (1,085,428) 521,755 370,019 (151,736) 9,003,799 7,766,635 (1,237,164) (439,014) 500,643 939,657 604,425 752,461 148,036 (741,180) (845,597) (104,417) (136,755) (93,136) 43,619 (575,769) 407,507 $983,276 4,780,247 $5,187,754 The accompanying notes are an integral part of these financial statements. 31 CITY OF COLUMBIA HEIGHTS, MINNESOTA 1,357,178 8,752,820 7,554,568 COMBINED STATEMENT OF REVENUES, EXPENSES AND 1,472,943 90,554 1,563,497 Statement 4 CHANGES IN RETAINED EARNINGS 219,703 152,291 371,994 351,645 PROPRIETARY FUND TYPES 9,088,288 1,600,023 10,688,311 For The Year Ended December 31, 1996 476,138 (619,197) With Comparative Totals For The Year Ended December 31, 1995 429,223 Internal Totals 271,340 94,494 Enterprise Service (Memorandum Only) 60,172 Funds Funds 1996 1995 Operating revenues: 422,913 4,959 427,872 98,685 Charges for services $2,397,468 $920,680 $3,318,148 $2,960,327 Charges for sales 7,166,958 60,146 7,227,104 6,856,671 Total operating revenues 9,564,426 980,826 10,545,252 9,816,998 Operating expenses: Costs of sales, services, and goods sold Operating expense Depreciation Total operating expenses Net income (loss) from operations Nonoperating revenues (expenses): Interest income Intergovernmental Miscellaneous revenues Interest expense Miscellaneous expenses Total nonoperating revenues (expenses) Net income (loss) before operating transfers Operating transfers: Operating transfers in Operating transfers (out) Total operating transfers Net income Credit for depreciation on contributed assets Net increase in retained earnings Retained earnings - January 1 Retained earnings - December 31 7,395,642 1,357,178 8,752,820 7,554,568 1,472,943 90,554 1,563,497 1,481,562 219,703 152,291 371,994 351,645 9,088,288 1,600,023 10,688,311 9,387,775 476,138 (619,197) (143,059) 429,223 271,340 94,494 365,834 414,426 60,172 - 60,172 64,131 422,913 4,959 427,872 98,685 , - (20,327) (20,327) (24,728) (33,011) - (33,011) (78,103) 721,414 79,126 800,540 474,411 1,197,552 (540,071) 657,481 903,634 ' 256,685 226,506 483,191 535,239 (809,970) (46,608) (856,578) (989,446) (553,285) 179,898 (373,387) (454,207) ' 644,267 (360,173) 284,094 449,427 65,229 - 65,229 65,229 709,496 (360,173) 349,323 514,656 8,277,947 1,799,053 10,077,000 9,562,344 $8,987,443 $1,438,880 $10,426,323 $10,077,000 fl 32 The accompanying notes are an integral part of these financial statements. I CITY OF COLUMBIA HEIGHTS, MINNESOTA 'COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 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) deposits Total adjustments Net cash flows from operating activities Statement 5 Internal Totals Enterprise Service (Memorandum Only) Funds Funds 1996 1995 $9,628,000 (8,054,315) (808,289) 176,171 (33,011) 908,556 $980,812 $10,608,812 $9,762,798 (909,530) (8,963,845) (8,128,656) (170,809) (979,098) (965,376) 4,959 181,130 162,816 (33,011) (78,103) (94,568) 813,988 753,479 256,685 226,506 483,191 535,239 (809,970) (46,608) (856,578) (989,446) (553,285) 179,898 (373,387) (454,207) (476,983) (78,642) (555,625) (242,984) 1,879 77 1,956 77,785 - (20,327) (20,327) (24,728) (475,104) (98,892) (573,996) (189,927) 271,124 94,426 365,550 402,764 271,124 94,426 365,550 402,764 151,291 80,864 232,155 512,109 3,753,394 1,676,407 5,429,801 4,917,692 $3,904,685 $1,757,271 $5,661,956 $5,429,801 $476,138 ($619,197) ($143,059) $429,223 176,171 4,959 181,130 162,816 (33,011) - (33,011) (78,103) 219,703 152,291 371,994 351,645 42,488 (44) 42,444 (54,170) (20,264) 30 (20,234) 13,718 41,350 - 41,350 39,760 65,934 28,300 94,234 (29,908) (20,971) 977 (19,994) (3,304) (1,084) (28,121) (29,205) (2,048) 13,004 466,400 479,404 9,551 (50,902) - (50,902) 6,317 - (99,548) (99,548) (95,173) - (615) (615) (589) - - - 3,744 432,418 524,629 957,047 324,256 $908,556 ($ $813,988 $753,479 Noncash investing, capital and financing activities: During 1996, the City conveyed ownership of an interceptor to the MCES for $330,414 of credits which will be amortized against MCES sewer billings over the next 15 years. The accompanying notes are an integral part of these financial statements. 33 CH 34 CITY OF COLUMBIAHEIGHTS, MHgNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 I 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 The component units discussed below are excluded in the City's reporting entity because of the significance of their operational or financial relationships with the City. The City of Columbia Heights has two component units - the Housing and Redevelopment Authority (HRA) and the Economic Development Authority (EDA). The HRA and the EDA are considered component units because the Mayor and City Council members comprise the majority membership of the governing authorities and because the City is in a relationship of financial benefit or burden with each of the entities. ' The financial position and results of operations of the BRA and the EDA component units are presented using the blended method. Blended component units, although legally separate entities, are, in substance, part of the City's operations and as such are reported as Special Revenue Funds. The component units include Governmental Funds using the modified accrual basis of accounting. Separate financial statements for the BRA and EDA are not prepared. B. BASIS OF PRESENTATION - FUND ACCOUNTING The accounts of the City of Columbia Heights are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. ' The various funds and account groups are grouped in this report into seven generic fund types, three broad fund categories, and two account groups. A description of the fund types and account groups used by the City follows. ' GOVERNMENTAL FUND TYPES General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific ' revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. 35 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of all general long -term debt principal, interest, and related costs. Capital Project Funds - Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major facilities, other than those financed by Proprietary Funds. PROPRIETARY FUND TYPES Enterprise Funds - Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Internal Service Funds - Internal Service Funds are used to account for the costs of providing goods or services to other departments or agencies of the City. Charges to other City departments are made to support these activities. FIDUCIARY FUNDS Agency Funds - Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, other governmental units, or other funds. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Trust Funds - Trust Funds are used to account for assets held by the City in a trustee capacity. ACCOUNT GROUPS General Fixed Assets Account Group - This account group is used to account for all of the fixed assets of the Governmental Fund Types. General Long -Term Debt Account Group - This account group is used to account for all of the City's long -term obligations, other than those liabilities of Proprietary Fund Types. C. BASIS OF ACCOUNTING Basis of accounting refers to the time at which revenues and expenditures are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. All Governmental, Agency and Expendable Trust Funds are reported on the modified accrual basis of accounting. Generally, only current assets and current liabilities are included in these funds. Governmental 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. W CITY OF COLUMBIA HEIGHTS, MINNESOTA ' NOTES TO FINANCIAL STATEMENTS December 31, 1996 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 I Governmental Entities that Use Proprietary Funds provides proprietary activities with a choice of authoritative guidance issued after November 30, 1989. The City of Columbia Heights has elected to follow GASB pronouncements exclusively after that date. D. BUDGETARY DATA The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing on January 1 of the following year. At least one special Council meeting is conducted to obtain public comments as required by the State Truth in Taxation Law. The City Council annually adopts budgets prior to January 1 for the General and certain Special Revenue Funds. The budgets are prepared by fund, function, and activity. The budgets are adopted on a basis consistent with generally accepted accounting principles and all appropriations lapse at the end of the budget year to the extent that they have not been expended. Total expenditures appropriated in the budget resolution may not legally exceed the estimated revenues available from various sources. Formal budgetary integration is employed as a management control device during the year. Budget revisions between functions or activities may be made by the City Manager. Budget revisions at the fund level are authorized by the City Council in accordance with the City Charter at the request of the City Manager. The legal level of budgetary control is therefore at the fund level. The City does not use encumbrance accounting. rAmounts shown in the financial statements represent the original budgeted amounts and the following increases in appropriations: ' General Fund $8,547 Special Revenue Funds: . Cable TV 70,000 Community development 1,800 ' Local Law Enforcement Block grant 2,261 Totals $82,608 1 37 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 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: Recreation contributed projects Contributed projects Parking ramp Confiscated property Housing mortgage C.H.A.S.E. COPS overtime grant HRA EDA: EDA administration Section 8 Rental housing Total Special Revenue Funds Total Other Fund Balance Financing Residual Fund Balance December 31, Total Total Sources Equity December 31, 1995 Revenues Expenditures (Uses) Transfers 1996 $1,189,023 $1,786,206 $1,698,008 $119,142 ($47,959) $1,348,404 8,821 31,267 25,638 - - 14,450 12,399 16,275 15,316 - - 13,358 617,484 12,102 - - - 629,586 2,928 - - - - 2,928 ' 467,725 1,235 - - - 468,960 - 4,788 4,788 - - - 25,770 25,372 - 398 53,521 129,284 64,191 (134,061) ' - (15,447) - 2,378 32,836 (2,292) - (32,750) - 177,613 138,399 (5,000) - 34,214 - 44,161 56,407 500 - (11,746) ' $2,351,901 $2,231, 079 $2 $21,711 547,959 52 E. ASSETS, LIABILITIES, AND FUND EQUITY ACCOUNTS ASSETS Cash and Investments - Cash balances from all funds of the City 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. 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. 38 I CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Fixed Assets: General Fixed Assets Account Grout) - 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 I 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 fired 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 for Governmental Funds is recorded in the Compensated Absences Internal Service Fund. Vested or accumulated vacation leave of Proprietary Funds is recorded as an expense and liability of those funds as the benefits accrue to employees. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits. However, a liability is recognized for that portion of accumulating sick leave benefits that it is estimated will be taken as "terminal leave" prior to retirement. FUND EQUITY Contributed capital is recorded in Proprietary Funds that have received capital grants or contributions from developers, customers, or other funds. ' Fund balance accounts are subdivided: Reserved fund balance accounts indicate that portion of fund equity which has been legally segregated for specific purposes or is not appropriable for expenditures. Unreserved designated fund balance accounts indicate that portion of fund equity that the City has set aside for planned future projects. Unreserved undesignated fund balance accounts indicate that portion of fund equity which is available for budgeting and expending in future periods. 39 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 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 - Intergovernmental revenues are reported using the guidelines of legal and contractual requirements of the individual programs. Other Revenues - Other revenues, such as licenses and permits, fees for services, fines and forfeits, and miscellaneous revenue, are recognized when received in cash because they generally are not measurable until received. Investment income is recognized as earned since it is measurable and available. Expenditure recognition for Governmental Fund Types includes only amounts represented by current liabilities. G. TOTAL COLUMNS ON COMBINED STATEMENTS Total columns on the combined statements are captioned "Totals (Memorandum Only)" to indicate that they are presented only to facilitate financial analysis. Data in these columns does not present cash flow or results of operations in conformity with generally accepted accounting principles nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of these data. 40 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 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' 1 equity in the City-wide cash and investment management pool is considered to be cash equivalents. 1 Note 2 DEPOSITS AND INVESTMENTS The City maintains a cash and investment pool that is available for use by all funds of the City. Each fund type's portion of this pool is displayed on the combined balance sheet as "Total Cash and Investments." An indication of the level of risk assumed by the City at year -end is categorized as follows for the City's cash and investments. DEPOSITS In accordance with Minnesota Statutes, the City maintains deposits at depository banks authorized by the City Council. Minnesota Statutes require that all deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds (140% in the case of mortgage- backed collateral). Authorized collateral includes the legal investments described below, as well as certain first mortgage notes, and certain other state or local government obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City or in a financial institution other than that furnishing the collateral. Deposits include checking accounts, savings accounts, and certificates of deposit. At December 31, 1996, the carrying amount of the City's deposits was $807,575 and the bank balance was $1,125,552. The entire bank balance was insured or collateralized by securities held by the City's agent in the City's name. 41 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 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. Investment balances at December 31, 1996 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) $12,817,396 $ - $ - $12,817,396 $12,456,114 Shared investment pools 4,798,061 4,798,061 Total investments 17,615,457 $17,254,175 Deposits 807,575 Cash on hand 5,477 Total cash and investments $18,428,509 Assets held by deferred compensation trustees 42 $3,217,308 $3,217,308 I CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note 3 LEGAL COMPLIANCE/BUDGETS Total actual expenditures exceeded budgeted expenditures (appropriations) in the following funds for 1996: 1 Budgeted Actual Over Expenditures Expenditures Budget i City: Special Revenue Funds: EDA: 1 Parkview Villa North $257,417 $259,512 $2,095 Parkview Villa South 136,479 136,734 255 Total Special Revenue Funds $393,896 $396,246 $2,350 Revenues and expenditures in the Community Development Special Revenue Fund are significantly under budget because several activities originally budgeted in this fund were actually accounted for in other funds and the budget was not amended for this change. 43 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note 4 INTERGOVERNMENTAL RECEIVABLES Intergovernmental receivables at December 31, 1996 presented as due from other governmental units are composed of the following: General Fund: City of St. Anthony $572 Anoka County 32,529 City of Hilltop 4,748 City of Minneapolis 623 Independent School District #13 12,731 Total General Fund 51,203 Special Revenue Funds: 490,358 Federal Police Grant - Federal Department of Justice 15,442 FAST COPS - Federal Department of Justice 24,827 Municipal State Aid - State of Minnesota 69,536 EDA (Component unit): $913,729 Anoka County CDBG - Anoka County 182,258 Section 8 - Metropolitan Council 14,563 Parkview Villa North - Housing and Urban Development 11,366 Total Special Revenue Funds 317,992 Capital Projects Funds: Capital Improvement Parks - Anoka Soil Conservation District 29,493 Enterprise Funds: Sewer - MCES 490,358 Refuse - Anoka County 22,277 Liquor - State of Minnesota 2,406 Total Enterprise Funds 515,041 Total intergovernmental receivables $913,729 44 I CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 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 I 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 Iwith the Metropolitan Council during 1994 to form the Metropolitan Council Environmental Services (MCES). As of December 31, 1996, a balance of $80,843 remained to be collected over the next four years. As of January 1, 1996, the Metropolitan Council (MCES) assumed ownership of an existing ' interceptor pursuant to an agreement with the City of Hilltop regarding usage of interceptors owned and maintained by the City of Columbia Heights. The MCES acquired the interceptor at a cost of $330,413.72. This amount is being amortized through credits received against annual sewer billings from MCES over a 15 -year period with interest at 4 %. As of December 31, 1996, a balance of $313,912.50 remained to be collected over the next fourteen years. These receivables are presented as Due From Other Governmental Units in the Sewer Utility Fund. Note 5 LOANS RECEIVABLE Loans receivable at December 31, 1996 consist of the following: Sheffield Redevelopment $8,904 HRA: Business Revolving Loans 77,900 Mortgage Loans 54,596 EDA: Anoka County CDBG: Anoka County Community Action Program (ACCAP) Loans 171,199 Total $312,599 tThe BRA and EDA loans relate primarily to personal residences of lower income individuals under a Community Development Program. 45 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note 6 INTERFUND RECEIVABLES AND PAYABLES Individual fund interfund receivables and payables at December 31, 1996 consist of the following: Interfund Interfund Receivables Payables City: General Fund $394,257 $ - Special Revenue Funds: Municipal State Aid Parking Ramp Housing Mortgage Community Development HRA EDA: Anoka County CDBG EDA Administration Rental Housing Debt Service Funds: Tax Increment Bonds Capital Projects Funds: Medtronic Development Sheffield Redevelopment Enterprise Funds: Sewer Utility Liquor Total 46 - 87,346 408,027 - 446,352 - - 55,842 94,305 131,090 - 97,480 - 32,970 12,744 854,379 38,156 - 973,855 771,921 - 169,000 - $2,283,862 $2,283,862 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note 7 INTERFUND TRANSFERS From To Amount Purpose Operating: General General General Gram General General General General Municipal State Aid Cable Television library Fund Tax Increment Bonds Tax Increment Bonds Capital Improvement Building Capital Improvement Projects Sewer Capital Equipment Replacement Water Capital Equipment Replacement Garage Capital Equipment Replacement Water Utility Water Utility Water Utility Sewer Utility Sewer Utility Sewer Utility Sewer Utility Refine Utility Refirse Utility Liquor liquor liquor liquor liquor Water Capital Construction Sewer Capital Construction Central Garage Central Garage Community Development EDA - Anoka County CDBG EDA - Anoka County CDBG EDA - Anoka County CDBG EDA - Anoka County CDBG EDA - Parkview Villa North EDA - Administration EDA - Section 8 EDA - Parkview Villa South HRA HRA Residual equity transfen: Paratransit Tax Increment Bonds Pension Reserve Capital Improvement Projects Energy memgement Community development Federal Police Grant Capital equipment replacement FAST COPS Infrastructure General General General Tax Increment Bonds 1991A Tax Increment Bonds 1993A Infrastructure Capital improvement Sewer Utility Water Utility Central Garage General Data processing Water Capital Equipment Replacement General Data processing Sewer Capital Equipment Replacement Account Sewer Capital Construction General Data processing General Capital Equipment Replacement DARE Project Infrastructure Data processing Water utility Sewer utility Garage Capital Equipment Replacement Data processing General General EDA -Rental Housing Capital Improvement HRA General General General General General Sheffield Redevelopment EDA - Anoka County CDBG Total operating transfers General Multi-Use Redevelopment Project Total residual equity transfers Grand total all transfera $90,000 Policeffire pension contribution $129,000 Park improvements 94,898 Energy improvements 126,973 Building inspections 13,966 Unfimded benefits 50,000 Replacement fixed assets 60,000 Future officer funding 50,000 Fund fixture improvements 50,000 State aid street maintenance 49,396 Administrative labor 7,074 Administrative labor 1,254,455 Debt service 204,813 Debt service 70,000 Fund future improvements 1.692 Close projects 34,096 Equipmeut replacement 26.797 Equipment replacement 24,608 Equipment replacement 62,255 Administrative labor 18.000 Fund data processing services 15,000 Replacement fixed sum 62,255 Administrative labor 18,000 Fund data processing services 25,000 Replacement fixed assets 102,840 Fund future improvements 89,454 Administrative labor 18,000 Fund data processing services 58,996 Administrative labor 140,000 Replacement fixed assets 5,325 Fund DARE program 50,000 Fund fiutum improvements 31.000 Fund data processing services 7,486 Close projects 45,466 Close projects 4,000 Repkocmeot fixed assets 18.000 Fund data processing services 9,893 Administrative labor 2.000 Administrative labor 500 Relocation reimbursement 27,336 Architectural barrier improvements 81,561 Low income housing renovations 2.000 Administrative labor 2,292 Administrative labor 5,000 Adminiafrative labor 1.000 Administrative labor 944 Administrative labor 71,040 Guaranteed fimding 143,638 Restricted loan proceeds 3,456,049 47,959 Close fund 129,647 Close fiord 177,606 $3,633,655 47 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note 8 FIXED ASSETS The following is a summary of changes in the General Fixed Assets Account Group during the fiscal year: The following is a summary of Proprietary Fund Type fixed assets at December 31, 1996: Balance Sewer Refuse Balance Total Internal January 1, utility December 31, Utility City 1996 Additions Retirements 1996 Land Land $3,319,619 $80,652 $ - $3,400,271 $ - Buildings 8,097,916 56,376 - 8,154,292 182,681 Improvements other than buildings 1,503,253 14,354 - 1,517,607 3,364,888 Machinery and equipment 5,228,435 646,169 75,878 5,798,726 Machinery and equipment Construction in process 412,983 29,257 412,983 29,257 171,484 Total City general fixed assets $18,562,206 $826,808 $488,861 $18,900,153 - The following is a summary of Proprietary Fund Type fixed assets at December 31, 1996: 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, 1996 amounted to $134,978. The City also has leased premises for its Top Valu lI 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, 1996 amounted to $55,208. 48 Water Sewer Refuse Total Internal Total utility utility Utility Liquor Enterprise Service Proprietary Land $45,223 $36,586 $ - $4,360 $86,169 $ - $86,169 Buildings 256,171 56,455 6,000 182,681 501,307 748,016 1,249,323 Improvements other than buildings 2,873,122 3,364,888 2,890 104,538 6,345,438 436,460 6,781,898 Machinery and equipment 265,430 480,899 8,208 365,700 1,120,237 171,484 1,291,721 Construction in process 278,462 58,482 - 336,944 336,944 Total 3,718,408 3,997,310 17,098 657,279 8,390,095 1,355,960 9,746,055 Less accumulated depreciation 1,786,484 29130,183 7,107 454,442 4,378,216 705,424 5,083,640 Net fixed assets $1,931,924 $1,867,127 $9,991 $202,837 $4,011,879 $650,536 $4,662,415 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, 1996 amounted to $134,978. The City also has leased premises for its Top Valu lI 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, 1996 amounted to $55,208. 48 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Future minimum rental payments are as follows: Top Valu Top Valu II 1997 $88,785 $36,610 1998 88,785 6,102 1999 88,785 - Total $266,355 $42,712 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: 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 (406,140) Net $304,641 49 Principal Interest Total 1997 $104,124 $16,366 $120,490 1998 108,910 11,580 120,490 1999 113,916 6,574 120,490 2000 58,906 1,339 60,245 Total $385,856 $35,859 $421,715 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 (406,140) Net $304,641 49 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 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;6 7/1/93 2/1/97 200,000 $7,469,721 Annual debt service requirements to maturity for general obligation bonds including interest of $5,135,599 are as follows: Fiscal Year Ending December 31 1997 1998 1999 2000 2001 Thereafter Totals Total $1,401,128 1,180,390 1,085,167 986,980 897,270 7,054,380 $12,605,315 At December 31, 1996, a total of $843,287 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. 50 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 4,870,000 735,000 3.80 - 5.15;6 7/1/93 2/1/97 200,000 $7,469,721 Annual debt service requirements to maturity for general obligation bonds including interest of $5,135,599 are as follows: Fiscal Year Ending December 31 1997 1998 1999 2000 2001 Thereafter Totals Total $1,401,128 1,180,390 1,085,167 986,980 897,270 7,054,380 $12,605,315 At December 31, 1996, a total of $843,287 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. 50 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 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. 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 1996) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1996 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $174,314 $833,885 $659,571 $28,434,721 $21,165,000 $7,269,721 B. 1984 Modification to the Downtown CBD Revitalization Plan C7 Type of District Authorizing Law Duration of District Original Tax Capacity Current Tax Capacity (for taxes collectible in 1996) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1996 C. 1984 University Avenue Redevelopment CS Type of District ' Authorizing Law Duration of District Original Tax Capacity Current Tax Capacity (for taxes collectible in 1996) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1996 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $37,598 $60,721 $23,123 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $25,176 $109,349 $84,173 $1,070,000 $1,070,000 51 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 D. 1987 Sullivan Lake Development H2 Type of District Redevelopment Authorizing Law HRA (Minnesota Statutes Sections 462.545 and 462.585) Duration of District August 1, 2009 Original Tax Capacity $42,525 Current Tax Capacity (for taxes collectible in 1996) $104,936 Captured Tax Capacity Retained $62,411 Bonds Issued $1,835,000 Principal Payments $1,635,000 Bonds Outstanding at December 31, 1996 $200,000 E. 1989 Multi -Use Redevelopment Plan K2 Type of District Redevelopment Authorizing Law HRA (Minnesota Statutes Sections 462.545 and 462.585) Duration of District October 4, 2014 Original Tax Capacity $8,114 Current Tax Capacity (for taxes collectible in 1996) $22,844 Captured Tax Capacity Retained $14,730 Bonds Issued - Principal Payments Bonds Outstanding at December 31, 1996 - F. 1995 Sheffield Tax Increment Financing District D Type of District Redevelopment Authorizing Law HRA (Minnesota Statutes Sections 469.174 to 469.179 inclusion as amended) Duration of District December 31, 2022 Original Tax Capacity $34,938 Current Tax Capacity (for taxes collectible in 1996) $33,774 Captured Tax Capacity Retained - Bonds Issued - Principal Payments - Bonds Outstanding at December 31, 1996 - 52 CITY OF COLUMBIA HEIGHTS MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Changes in Long -Term Liabilities - During the year ended December 31, 1996, the following changes occurred in liabilities reported in the General Long -Term Debt Account Group: Balance Balance City January 1 Additions Reductions December 31 Note payable to HRA $13,678 $ - $13,678 $ - General Obligation Tax Increment Bonds: Principal 8,624,721 - 1,155,000 7,469,721 Accreted interest 994,365 242,582 - 1,236,947 Liability for compensated absences 437,967 - 437,967 - Total City $10,070,731 $242,582 $1,606,645 $8,706,668 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, 1996, accreted interest of $1,236,947 was included in general long -term debt for the 1990 Tax Increment Capital Appreciation Bonds. CONDUIT DEBT OBLIGATIONS From time to time, the City of Columbia Heights has issued Revenue Bonds to provide financial assistance to private- sector entities for the acquisition and construction of facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from private- sector entity revenues. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private- sector entity served by the bond issuance. Neither the City of Columbia Heights, the State of Minnesota, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 1996 there were seven series of Revenue Bonds outstanding, with an aggregate principal amount payable of $19,568,000. 53 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note 12 FUND EQUITY The following funds had a fund deficit as of December 31, 1996: City: Fund Deficit Special Revenue Funds: Municipal State Aid $22,450 Community Development 63,036 HRA 15,447 EDA: EDA Administration 32,750 EDA Rental Housing 11,746 Capital Projects Funds: Medtronic Development 38,156 Sheffield Redevelopment 776,351 Internal Service Funds: Energy Management 93,224 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. 54 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Reservations of retained earnings are summarized as follows at December 31, 1996: Reserve for capital replacement /construction: Water Utility Fund Sewer Utility Fund Central Garage Fund Reserve for insurance Total B. RESERVATION OF FUND BALANCES Internal Enterprise Service Total $543,097 $ - $543,097 2,206,932 - 2,206,932 - 34,020 34,020 1,085,726 1,085,726 $2,750,029 $1,119,746 $3,869,775 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 which have specific restrictions for future use. 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, 1996 are summarized as follows: Reserve for prepayments $19,374 Reserve for program expenditures 550,553 Reserve for real estate held for resale 191,713 Totals C. DESIGNATED UNRESERVED FUND BALANCES $761,640 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. 55 1 i 56 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 i Designated for Working Capital -This amount represents funds set aside by the City to p rovide positive cash flow for the next fiscal year. Designated for Business Revolving Loan Fund - This amount represents funds set aside by the BRA to provide certain low interest loans. Designated for PVVS Maintenance - This amount represents funds set aside by the HRA to provide for maintenance costs in future years at Parkview Villa South senior housing. Designations for unreserved fund balances at December 31, 1996 are summarized as follows: City of Columbia Heights Special Debt Capital Expendable General Revenue Service Project Trust Total Designated for debt service $ - $ - $843,287 $ - $ - $843,287 Designated for subsequent years' expenditures 24,835 13,885 - 105,231 456,433 600,384 Designated for working capital 3,257,316 214,348 - - - 3,471,664 Designated for PWS maintenance - 394,922 - - - 394,922 Total designated unreserved fund balance $3,282,151 $623,155 $843,287 $105,231 $456,433 $5,310,257 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, 1996 is as follows: Water Sewer Refuse Liquor Total Operating revenue $1,214,200 $1,073,156 $1,265,163 $6,011,907 $9,564,426 Depreciation expense 70,465 102,026 1,570 45,642 219,703 Operating income (loss) 58,508 (8,917) 70,542 356,005 476,138 Net income (loss) 50,683 407,257 69,625 116,702 644,267 Total operating transfers (80,255) (80,255) (107,454) (285,321) (553,285) Property, plant and equipment additions 313,225 153,230 6,670 3,858 476,983 Net working capital 1,046,579 2,581,904 1,122,845 1,140,839 5,892,167 Net cash provided by operating activities 149,036 200,577 173,977 361,466 885,056 Total assets 3,065,742 4,890,174 1,132,965 1,724,612 10,813,493 Total equity - contributed 755,829 555,530 - - 1,311,359 Total equity - retained earnings 2,222,674 4,288,257 1,132,836 1,343,676 8,987,443 1 i 56 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 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 $777,925 $590,267 $188,849 $1,557,041 Additions 4,198 4,198 - 8,396 Less: Depreciation on contributed assets (26,294) (38,935) - (65,229) Balance - end of year $755,829 $555,530 $188,849 $1,500,208 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 plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund ( PEPFF) which are cost- sharing, multiple- employer retirement plans. These plans are established and administered in accordance with Minnesota Statute, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan 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, 1996 was $2,904,613 and $1,428,195, respectively; the City's total payroll was $4,959,307. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon 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 Plan 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 Plan member is 2 percent of average salary for each of the first 10 years of service and 2.5 percent for each remaining year. For a Coordinated Plan member, the annuity accrual rate is 1 percent of average salary for each of the first 10 years and 1.5 percent for each remaining year. Using Method 2, the annuity accrual rate is 2.5 percent of average salary for Basic Plan members and 1.5 percent for Coordinated Plan members. For PEPFF members, the annuity accrual rate is 2.65 percent 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. 57 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 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. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. 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, Subd. 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 (a blended rate for both the Basic and Coordinated Plans) 4.30% 4.60% 9.60% PEPFF 7.60% 11.40% 19.00% *The recommended rates scheduled above represent the required rates for fiscal year 1996 contributions as reported in the July 1, 1995 actuarial valuation reports. Total contributions made by the City during 1996 were: Retirement Plan PERF PEPFF Totals 58 Percentage of Am_ ount Covered Payroll Employer Employees Employer $139,722 4.44% 4.81% Employees $129,004 108,543 $237,547 162,814 7.60% 11.40% $302,536 CITY OF COLUMBIA HEIGHT MINNESOTA C S, NOTES TO FINANCIAL STATEMENTS December 31, 1996 The City's contribution for the year ended December 31, 1996 to the PERF represented 0.108% of total contributions required of all participating entities. For the PEPFF, contributions for the year ended June 30, 1996 represented 0.451% 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 is the actuarial present value of credited projected benefits and 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 Employee Retirement Systems and participating employers. The measure is independent of the actuarial funding method used to determine required contnbutions, which is discussed in Note B. PERA does not make separate measurements of assets and pension benefit obligation amounts for individual participating employers. The pension benefit obligations for the PERF and the PEPFF as of June 30, 1996 are reported below. PERF PEPFF Total pension benefit obligation $6,608,646 $1,243,429 Net assets available for benefits, at cost 5,702,248 1,592,671 Unfunded/(assets in excess of) pension benefit obligation $906,398 ($349,242) Net assets available for benefits, at market $5,954,697 $1,713,687 The pension benefit obligation was determined as part of an actuarial valuation at July 1, 1996. 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 percent per year, compounded annually, prior to retirement, and 5 percent per year, compounded annually, following retirement; (b) projected salary increases taken from an age related table which incorporates a 5 percent base inflation assumption; (c) payroll growth at 6 percent per year, consisting of 5 percent for inflation and 1 percent due to growth in group size; (d) post- retirement benefit increases that are accounted for by the 5 percent 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. W CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 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 percent per year, compounded annually, prior to retirement, and 5 percent per year, compounded annually, following retirement, (b) projected salary increases of 6.5 percent per year, compounded annually, attributable to the effects of inflation; (c) It post - retirement increases that are accounted for by the 5 percent 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 Actuarial Assumptions and Methods Since the July 1, 1995 actuarial valuation, there were no changes in actuarial assumptions of the PERF and the PEPFF which impacted funding costs. 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 1997, will significantly impact the July 1, 1997 actuarial valuation of the PEPFF. Changes in Benefit Provisions The 1996 legislative session did not include any benefit improvements which would impact funding costs for the PERF and the PEPFF. D. TEN -YEAR HISTORICAL TREND INFORMATION Ten -year historical trend information is presented in PERA's Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996. 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, 1996 and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. 60 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 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, 1996 is summarized as follows: Pension benefit obligation Net assets available for pension benefits Unfunded (assets in excess of) pension benefit obligation Single Employer Fire Relief Association - Volunteer Division $549,936 Agent - Multiple Employer Police and Fire Consolidation Fund (PFCF) Total $5,888,170 $6,438,106 708,876 5,718,988 6,427,864 ($158,940) $169,182 $10,242 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, 1996 was $230,744; the City's total payroll was $4,959,307. B. RELATED PARTY INVESTMENTS During 1996, the PFCF held no securities issued by the City or other related parties. 61 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 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 -concem 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. The standardized measure of the unfunded pension benefit obligation as of July 1, 1996 (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 62 Fire Account Police Account Total $1,415,342 $2,939,695 $4,355,037 39,384 162,139 201,523 465,322 866,288 1,331,610 1,920,048 3,968,122 5,888,170 1,937,116 3,781,872 5,718,988 ($17,068) $186,250 $169,182 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 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 1996 amounts to $43,842 of which $26,306 and $17,536 were made by the City of Columbia Heights and its employees, respectively. The contributions made by the City of Columbia Heights and its employees represent 11.4% and 7.6% respectively, of total covered payroll. The contributed amounts were actuarially determined as described above. These contributions represent funding for normal cost. The City also contributed an additional $28,103 (10.4% of covered payroll) 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. I 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. 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, 1996. The information is presented to enable the reader to assess the progress made in accumulating sufficient assets to pay pension benefits as they become due. Historical information for the three most recent years is as follows: Net assets available for benefits as a percent of the pension benefit obligation (PBO) Unfunded PBO as a percent of covered payroll Employer's contribution as a percent of covered payroll * June 30, 1996 1995 1994 97% 95% 88% 73% 97% 385% 11.4% 11.4% 11.4% *Made in accordance with actuarially determined requirements. 63 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 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 1996, 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. 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, 1996, contributions totaling $27,782 (all employer) were made in accordance with contribution requirements determined by an actuarial valuation of the Plan as of December 31, 1992. The contributions represent normal cost only since there was no unfunded actuarial liability. Benefits and contributions are not based on payroll; accordingly, there is no covered payroll. D. FUNDING STATUS The amount shown 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 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. 64 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 At December 31, 1996, the assets in excess of the pension benefit obligation were $158,940, 1i 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 708,876 (Assets in excess of) pension benefit obligation ($158,940) E. HISTORICAL TREND INFORMATION Three -Year Historical Trend Information December 31, -1996- 1995 1994 Net assets available for benefits as a percentage of pension benefit obligation 129% 189% 175% Unfunded (assets in excess of) pension N/A N/A N/A benefit obligation, as a percentage of annual covered payroll Employer's contribution as a percentage of annual covered payroll N/A N/A N/A Financial requirements of the Relief Association are determined in accordance with State Statutes rather than actuarially. Ten -Year Historical Trend Information Ten -year historical trend information is presented in the Relief Association's Annual Financial Report. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. F. RELATED PARTY INVESTMENTS During 1996, the Association held no securities issued by the City or other related parties. 65 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note 19 DEFERRED COMPENSATION PLAN The government offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The Plan, available to all government employees, permits them to defer a portion of their salary until future years. Participation in the Plan is optional. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the Plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the government subject only to the claims of the government's general creditors. Participants' rights under the Plan are equal to those of general creditors of the government in an amount equal to the fair market value of the deferred account for each participant. It is the opinion of management that the government has no liability for losses under the Plan but does have the duty of due care that would be required of an ordinary prudent investor. The government believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. Investments are managed by the Plan's trustee under one of four investment options, or a combination thereof. The choice of the investment option(s) is made by the participants. Assets of the Plan are reflected in these statements in an Agency Fund at market value. Note 20 COMMITMENTS AND CONTINGENCIES A. RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Workers compensation coverage is provided through a pooled self - insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not subject to a deductible. The City's workers compensation coverage is retrospectively rated. With this type of coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if any, is considered immaterial and not recorded until received or paid. The City carried commercial insurance for all other risks of loss, including property and liability. 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. 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. .. I CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 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 There were no significant construction commitments at December 31, 1996. Note 21 RESTATEMENT OF FUNDS The Compensated Absences Fund has been reclassified from a Trust and Agency Fund to an Internal Service Fund in 1996. The liability for compensated absences for governmental funds has been moved to the Compensated Absences Internal Service Fund. This fund will be used to account for terminal benefits for all governmental fund employees. Revenue will be derived from charges to participating funds. The retained earnings at December 31, 1996 is $3,580. The 1995 balances have been restated for comparison purposes. In January, 1996, the City Council approved a resolution creating an Economic Development Authority (EDA) �- in the City of Columbia Heights. The governing authority of the EDA is composed of the Mayor, four councilmembers, and two citizens. At the time the EDA was created, oversight responsibility for the Housing and Redevelopment Authority (HRA) was transferred to the EDA governing authority. This resulted in a reporting change for the HRA from the discrete method of reporting component units to the blended method of reporting. Both the EDA and the BRA component units are reported in the Special Revenue Fund type. The 1995 balances have been restated for comparison purposes. 67 CH 68 MY OF COLUMBIAHEIGHTS, MINNESOTA COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS :• CH 70 CITY OF COLUMBIA HEIGHTS, MPMSOTA 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 COLUMBIAHEIGHTS, MII4NESOTA ' CITY OF OTA COLUMBIA HEIGHTS, MINNES 'GENERAL FUND BALANCE SHEET December 31, 1996 With Comparative Amounts For December 31, 1995 Assets Cash and investments ' Receivables: Accounts Taxes: ' Unremitted Delinquent 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 Due to other governmental units Deferred revenue Total liabilities Fund balance: Reserved for prepayments Unreserved: Designated for subsequent years' expenditures ' Designated for working capital Undesignated Total fund balance Total liabilities and fund balance Statement 6 1996 1995 $3,672,775 $3,533,913 5, 815 8,793 17,080 32,618 33,408 40,418 25,568 21,084 51,203 45,927 394,257 187,329 15,284 22,564 $4,215,390 $3,892,646 $59,356 $34,715 174,055 120,782 80,721 78,257 61,908 67,668 376,040 301,422 15,284 22,564 24,835 10,283 3,257,316 3,143,606 541,915 414,771 3,839,350 3,591,224 $4,215,390 $3,892,646 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, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest Other revenues: Miscellaneous Proceeds from sale of land Total revenues Expenditures: General government: Council Manager Legal Finance and elections Assessing Planning General government buildings Total general government Public safety: Police /animal /civil defense Fire Inspections Total public safety Public works: Engineering Maintenance Total public works Other departments: Sanitation Parks and recreation Contingencies Total other departments Total expenditures 74 6,461,103 6,068,627 (392,476) 5,897,913 1996 ' Over (under) 1995 Budget Actual Budget Actual ' $2,340,393 $2,403,017 $62,624 $2,204,400 131,450 223,758 92,308 176,290 3,203,494 3,219,370 15,876 3,131,943 ' 350,661 310,756 (39,905) 281,623 90,000 125,543 35,543 89,138 160,000 164,033 4,033 161,346 ' 40,180 14,995 (25,185) 21,331 500 19,600 19,100 - ' 6,316,678 6,481,072 164,394 6,066,071 181,189 181,189 - 194,236 ' 322,103 258,461 (63,642) 286,298 193,845 193,845 - 177,175 496,741 476,916 (19,825) 450,968 119,097 115,969 (3,128) 111,375 - - - 23,390 167,870 127,912 (39,958) 151,953 1,480,845 1,354,292 (126,553) 1,395,395 1,974,494 1,937,582 (36,912) 1,827,750 ' 660,284 660,284 - 596,898 126,332 2,634,778 2,597,866 (36,912) 2,550,980 ' 316,551 316,551 - 342,741 ' 743,421 649,126 (94,295) 596,078 1,059,972 965,677 (94,295) 938,819 151,808 124,580 (27,228) 73,815 1,129,793 1,023,952 (105,841) 938,113 , 3,907 2,260 (1,647) 791 1,285,508 1,150,792 (134,716) 1,012,719 6,461,103 6,068,627 (392,476) 5,897,913 CITY OF COLUMBIA HEIGHTS MINNESOTA GENERAL FUND Statement 7 ' STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - Page 2 of 2 BUDGET AND ACTUAL For The Year Ended December 31, 1996 ' With Comparative Actual Amounts For The Year Ended December 31, 1995 ' 1996 Over (under) 1995 Budget Actual Budget Actual Revenues over(under)expenditures ($144,425) $412,445 $556,870 $168,158 Other financing sources (uses): Operating transfers in 409,866 402,559 (7,307) 412,914 Operating transfers (out) (533,234) (614,837) (81,603) (441,087) Operating transfers in from component unit 6,831 Total other financing sources (uses) (123,368) (212,278) (88,910) (21,342 Net increase (decrease) in fund balance ($267,793) 200,167 $467,960 146,816 balance - January 1 3,591,224 3,444,408 'Fund Residual equity transfers 47,959 _ Fund balance - December 31 $3,839,350 $3,591,224 75 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND Statement 8 SCHEDULE OF REVENUES - BUDGET AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 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 1996 Over (under) 1995 Budget Actual Budget Actual $2,340,393 $2,399,207 $58,814 $2,195,223 - 3,810 3,810 9,177 2,340,393 2,403,017 62,624 2,204,400 80,850 92,385 11,535 87,920 50,600 131,373 80,773 88,370 131,450 223,758 92,308 176,290 3,500 5,357 1,857 5,125 - 4,080 4,080 960 2,111,917 2,111,917 - 2,052,835 940,082 940,082 - 978,510 7,000 7,738 738 6,817 89,482 89,482 - 32,654 18,060 20,480 2,420 15,360 - 4,105 4,105 4,890 33,453 36,129 2,676 34,792 3,203,494 3,219,370 15,876 3,131,943 15,230 1,270 (13,960) 1,920 147,816 140,864 (6,952) 134,742 33,415 13,523 (19,892) 11,498 154,200 155,099 899 133,463 350,661 310,756 (39,905) 281,623 90,000 125,543 35,543 89,138 90,000 125,543 35,543 89,138 160,000 164,033 4,033 161,346 5,680 5,072 (608) 3,590 500 19,600 19,100 - 34,500 9,923 (24,577) 17,741 200,680 198,628 (2,052) 182,677 $6,316,678 $6,481,072 $164,394 $6,066,071 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND Statement 9 SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 1996 Actual Total expenditures $6,461,103 $4,390,714 $1,636,890 $41,023 $6,068,627 ($392,476) $5,897,913 77 Supplies Over Personal and Capital (under) 1995 Budget Services Services Outlay Total Budget Actual Expenditures: General government: Council and manager: Council $181,189 $101,649 $79,540 $ - $181,189 $ - $194,236 Manager 322,103 233,500 23,894 1,067 258,461 (63,642) 286,298 Legal 193,845 - 193,845 - 193,845 - 177,175 Total council and manager 697,137 335,149 297,279 1,067 633,495 (63,642) 657,709 Administrative services: Finance 466,401 400,355 50,435 2,289 453,079 (13,322) 423,717 Elections 30,340 20,907 850 2,080 23,837 (6,503) 27,251 Assessing 119,097 40,318 75,651 - 115,969 (3,128) 111,375 Planning - - - - - - 23,390 General government buildings 167,870 7,248 119,685 979 127,912 (39,958) 151,953 Total administrative services 783,708 468,828 246,621 5,348 720,797 (62,911) 737,686 Total general government 1,480,845 803,977 543,900 6,415 1,354,292 (126,553) 1,395,395 Public safety: Police 1,939,576 1,724,617 173,051 6,052 1,903,720 (35,856) 1,792,134 Fire 660,284 592,354 61,145 6,785 660,284 - 596,898 Inspections - - - - - - 126,332 Civil defense 23,224 15,463 6,190 515 22,168 (1,056) 26,583 Animal control 11,694 - 11,694 - 11,694 - 9,033 Total public safety 2,634,778 2,332,434 252,080 13,352 2,597,866 (36,912) 2,550,980 Public works, highways and streets: Engineering 316,551 246,654 52,987 16,910 316,551 - 342,741 Streets 563,974 266,569 232,145 1,013 499,727 (64,247) 444,366 Street lighting 130,288 1,467 108,240 - 109,707 (20,581) 108,743 Traffic signs /signals 49,159 26,906 12,593 193 39,692 (9,467) 42,969 Total public works, highways and streets 1,059,972 541,596 405,965 18,116 965,677 (94,295) 938,819 Other departments: Sanitation 151,808 69,475 55,105 - 124,580 (27,228) 73,815 Parks and recreation 1,129,793 643,232 377,580 3,140 1,023,952 (105,841) 938,113 Contingencies 3,907 - 2,260 - 2,260 (1,647) 791 Total other departments 1,285,508 712,707 434,945 3,140 1,150,792 (134,716) 1,012,719 Total expenditures $6,461,103 $4,390,714 $1,636,890 $41,023 $6,068,627 ($392,476) $5,897,913 77 CH 78 CITY OF COLUMBIAHEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources which finance specified activities as required by law or administrative regulation. Municipal State Aid Fund - maintained according to State Statute for maintenance and construction of streets or municipal state aid systems. Cable Television Fund - established to account for revenues and expenditures associated with cable television franchise. D.A.R.E. Program Fund - established to account for revenues and expenditures of D.A.RE. (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. 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. Community Development Fund - established to account for revenues and expenditures associated with planning, building inspections and community development projects within the City. Local Law Enforcement Block Grant Fund - established to account for revenues and expenditures associated with a federal grant received for the purchase of equipment to aid in crime prevention. 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. 79 Housing Mortgage Fund - established to account for proceeds and expenditures relating to housing mortgage refinancing proceeds which are not restricted for debt service. C.H.A.S.E. Fund - established to account for revenues and expenditures associated with a State grant received for community participation in youth enrichment programs. COPS Overtime Grant Fund - established to account for revenues and expenditures associated with a State grant received for payment of overtime wages and the purchase of equipment to aid in crime prevention. Housing and Redevelopment Authority Fund - established to account for revenues and expenditures associated with the Housing and Redevelopment Authority (component unit). The BRA provides funding for redevelopment in the City. Economic Development Authority - a separate legal entity from the City. The mayor and City Council comprise the majority membership component unit. Its purpose is economic development in the City. Anoka County CDBG Fund - established to account for revenues and expenditures associated with federal community development block grants and HOME funds. Parkview Villa North Fund - established to account for revenues and expenditures associated with low income federally subsidized senior housing. Economic Development Authority Administration Fund - established to account for revenues and expenditures associated with business development and community redevelopment projects in the City. Section 8 Fund - established to account for revenues and expenditures associated with the administration of Section 8 rental assistance programs within the City. Parkview Villa South Fund - established to account for revenues and expenditures associated with a EDA owned senior housing complex. Rental Housing Fund - established to account for revenues and expenditures of City -owned rental properties. 80 aff OF COLUMBIA HEIGHTS, MMWSOTA 'SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1996 With Comparative Totals For December 31, 1995 Assets ' Cash and investments Receivables: Accounts 1 Taxes Interest Loans Due from other governmental units Due from other funds Prepayments Real estate held for resale ' 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 Insurance & taxes in escrow Total liabilities Fund balance: Reserved for prepayments Reserved for real estate held for resale Reserved for program expenditures Unreserved: Designated for subsequent years' expenditures Designated for working capital Designated for maintenance Designated for Business Revolving Loan Fund Undesignated Total fund balance ' Total liabilities and fund balance Statement 10 Page 1 of 2 Municipal $25,181 $ - $686 $ - State Cable D.A.R.E. Project Aid Television Program Library Pride 87,346 - $ - $397,830 $3,329 $267,449 $ - - 19,675 - 163 - = 3,153 = 1,437 = 67,536 - - - 195 168 - 2,737 - $67,731 $420,826 $3,329 $271,786 $0 $2,069 $25,181 $ - $686 $ - 766 - = 9,954 = - - - - 357 - 87,346 - - # - - 90,181 0 10,997 0 25,181 - 195 - 168 = 2,737 = - 11,846 - - - - - - 214,348 - (22,645) 383,631 3,329 43,704 - (22,450) 395,645 3,329 260,789 0 $67,731 $420,826 $3,329 $271,786 $0 81 Assets Cash and investments Receivables: Accounts Taxes Interest Loans Due from other governmental units Due from other funds Prepayments Real estate held for resale 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 Insurance & taxes in escrow Total liabilities Fund balance: Reserved for prepayments Reserved for real estate held for resale Reserved for program expenditures Unreserved: Designated for subsequent years' expenditures Designated for working capital Designated for maintenance Designated for Business Revolving Loan Fund Undesignated Total fund balance Total liabilities and fund balance 82 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET , December 31, 1996 Community With Comparative Totals For December 31, 1995 Recreation Police Assets Cash and investments Receivables: Accounts Taxes Interest Loans Due from other governmental units Due from other funds Prepayments Real estate held for resale 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 Insurance & taxes in escrow Total liabilities Fund balance: Reserved for prepayments Reserved for real estate held for resale Reserved for program expenditures Unreserved: Designated for subsequent years' expenditures Designated for working capital Designated for maintenance Designated for Business Revolving Loan Fund Undesignated Total fund balance Total liabilities and fund balance 82 , Federal Community Local Law Recreation Police FAST Development Enforcement Contributed Contributed Grant COPS Fund Block Grant Projects Projects , $31,241 $107,772 $ - $22,702 $14,450 $139358 286 574 = 17 = = - 15,442 - 24,827 - _ - - - - - 608 $46,969 $133,173 $608 $22,719 $14,450 $13,358 $ - $ - $1,122 $ - $ - $ - 3,162 1,340 6,680 = = - - 55,842 - - - _ _ - 20,349 - - 0 , 0 20,349 63,644 3,162 1,340 - - - 608 = - - ' 43,807 131,833 (63,644) 2,370 14,450 13,358 43,807 131,833 63,036 2,370 14,450 13,358 $14,450 $13,358 , $46,969 $133,173 $608 $22,719 Statement 10 Page 2 of 2 Component Units Total Cops Housing and Economic Parking Confiscated Housing Overtime Redevelopment Development Totals ' Ramp Property Mortgage C.H.A.S.E. Grant Authority Authority 1996 1995 $219,673 $2,928 $22,416 $14,934 $5,585 $ - $1,016,263 $2,139,930 $1,654,210 - 1,348 21,186 19,268 1,028 - 1,028 2,729 1,886 192 62 8,082 15,689 12,872 - - - - 132,496 171,199 303,695 287,344 _ _ _ _ _ - 208,187 315,992 165,934 408,027 446,352 94,305 - 948,684 1,029,706 = = 382 4,090 6,856 - - - - - 21,113 63,000 84,113 54,115 ' $629,586 $2,928 $468,960 $14,934 $5,647 $248,942 $1,468,461 $3,834,407 $3,233,034 $1,867 $ - $ - $45,912 $76,837 $47,744 620 - 22,522 22,406 - - - - - = _ _ _ _ _ _ _ _ 15,801 629,586 2,928 - - 398 (36,560) 106,899 31,268 31,625 66,427 - - 131,090 143,194 417,472 181,310 13, 4,629 133,068 067 644,630 815,743 533,360 _ - - 17,622 17,622 14,085 _ _ 231 - 231 - 0 0 0 14,934 5,249 264,389 882,626 1,382,052 881,133 I -- -- -- -- -- - -382 4,090 6,856 21,113 21,113 21,113 468,960 - - - 81,593 550,553 467,725 2,039 13,885 - _ - 214,348 198,183 394,922 394,922 332,931 _ _ _ _ _ _ _ _ 31,845 629,586 2,928 - - 398 (36,560) 106,899 1,253,444 1,293,248 629,586 2,928 468,960 0 398 (15,447) 585,835 2,452,355 2,351,901 $629,586 $2,928 $468,960 $14,934 $5,647 $248,942 $1,468,461 $3,834, $3,233,034 83 CH 84 CITY OF COLUMBIAHEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS Statement 11 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Page i of 2 CHANGES IN FUND BALANCE ' For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 Revenues: Taxes Intergovernmental Fees/program revenues Rents Interest Other revenues: Miscellaneous Contributions Total revenues Expenditures: Parks and recreation: I 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): Operating transfers in Operating transfers (out) Total other financing sources (uses) Net increase (decrease) in fund balance ( Fund balance (deficit) - January 1 Residual equity transfers Fund balance (deficit) - December 31 Municipal State Cable D.A.R.E. Project Aid Television Paratransit Program Library Pride 228,308 - - - 82,679 - - 20,227 - 20,919 39,793 - 249,227 142,699 0 $ - $413,768 $ - 17,291 - 9,219 - 548 - - 548 440,278 0 163 1,642 30,501 456 - - 291,313 - 3,118 614 - 2,480 65,722 - 50,398 27,307 22 1,131 52,012 - 93,028 23,774 - - 8,921 - 177,045 52,151 22 3,611 417,968 1,805 72,182 90,548 (22) (3,063) 22,310 (1,805) - - - 5,325 - - (50,000) (49,396) - - (7,074) - (50,000) (49,396) 0 5,325 (7,074) 0 22,182 41,152 (22) 2,262 15,236 (1,805) (44,632) 354,493 47,981 1,067 245,553 1,805 - - (47,959) - - - ($22,450) $395,645 $0 ���� $3,329 $260,789 $0 85 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 Revenues: Taxes Intergovernmental Fees /program revenues Rents 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): Operating transfers in Operating transfers (out) Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance (deficit) - January 1 Residual equity transfers Fund balance (deficit) - December 31 86 Community Local Law Recreation Federal Fast Development Enforcement Contributed Contributed Police Grant Cops Fund Block Grant Projects Projects 45,036 30,965 - - - - 1,839 3,682 - 109 - - - - - - 31,267 16,275 46,875 34,647 0 109 31,267 16,275 20,470 - - 5,168 - 91,213 32,171 125,993 - - - - - 2,209 - - 4,784 - - 51,914 - - 240 _ _ _ _ - 10,292 91,213 32,171 180,116 0 25,638 15,316 - - (44,338) 2,476 (180,116) 109 5,629 959 11,705 60,000 126,973 2,261 - - - - (9,893) - - - 11,705 60,000 117,080 2,261 0 0 (32,633) 62,476 (63,036) 2,370 5,629 959 76,440 69,357 - - 8,821 12,399 $43,807 $131,833 ($63,036) $2,370 $14,450 $13,358 Statement 11 Page 2 of 2 87 Component Units Total Cops Housing and Economic Parking Confiscated Housing Overtime Redevelopment Development Totals Ramp Property Mortgage C.H A.S.E. Grant Authority Authority 1996 1995 $ - $ - $ - $ - $ - $72,272 $ - $486,040 $456,356 - - - 4,788 25,372 17,466 568,299 920,234 1,224,623 - - - - - 31,263 2,378 133,611 102,023 - 435,234 435,234 385,095 12,102 - 1,235 - 398 8,123 66,015 122,949 98,155 - - - - - 160 24,049 84,921 106,278 _ _ - - - - - 48,090 47,078 12,102 0 1,235 4,788 25,770 129,284 1,095,975 2,231,079 2,419,608 - - - 1,335 - - - 21,968 26,136 - - - 2,353 - - - 9,163 13,564 - - - 1,100 - - - 1,100 - - - - - 22,919 6,482 70,368 671,416 582,422 - - - - 2,433 - 21,377 102,737 103,331 - - - - 20 57,709 630,702 871,455 812,489 _ _ _ _ _ - 247,101 383,116 832,244 0 0 0 4,788 25,372 64,191 969,548 2,060,955 2,370,186 12,102 0 1,235 0 398 65,093 126,427 170,124 49,422 - - - - - 81,561 144,138 431,963 280,396 - - - - - (215,622) (121,689) (453,674) (277,089) 0 0 0 0 0 (134,061) 22,449 (21,711) 3,307 12,102 0 1,235 0 398 (68,968) 148,876 148,413 52,729 617,484 2,928 467,725 - - 53,521 436,959 2,351,901 2,299,172 _ _ _ _ - - - (47,959) - $629,586 $2,928 $468,960 $0 $398 ($15,447) $585,835 $2,452,355 $2,351,901 87 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - MUNICIPAL STATE AID STREET FUND Statement 12 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 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 Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance (deficit) - January 1 Fund balance (deficit) - December 31 1996 Over (under) 1995 Budget Actual Budget Actual $120,000 $157,672 $37,672 $103,995 - 70,636 70,636 437,105 47,610 20,919 (26,691) 13,252 167,610 249,227 81,617 554,352 11,200 16,357 5,157 15,954 1,100 3,118 2,018 8,242 42,486 40,125 (2,361) 174,454 19,700 30,135 10,435 16,230 24,920 14,144 (10,776) 47,767 - - - 402 9,000 10,273 1,273 12,809 200,000 62,893 (137,107) 354,715 308,406 177,045 (131,361) 630,573 (140,796) 72,182 212,978 (76,221) 533 (50,000) (50,000) - (29,100) (50,000) (50,000) 0 (28,567) ($190,796) 22,182 $212,978 (104,788) (44,632) 60,156 ($22,450) ($44,632) , 1 88 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - CABLE TELEVISION FUND Statement 13 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 1996 Over (under) 1995 Budget Actual Budget Actual Revenues: Franchise fees $75,000 $82,679 $7,679 $70,409 Interest 15,000 20,227 5,227 23,526 Other revenues: Miscellaneous - 39,793 39,793 1,815 Total revenues 90,000 142,699 52,699 95,750 Expenditures: Personal services 1,016 456 (560) 505 Supplies 2,205 614 (1,591) 900 Other services and charges 37,096 27,307 (9,789) 11,322 Capital outlay 71,150 23,774 (47,376) 14,082 Total expenditures 111,467 52,151 (59,316) 26,809 Revenues over expenditures (21,467) 90,548 112,015 68,941 Other financing sources (uses): ' Operating transfers (out) (49,396) (49,396) - (49,452) Net increase (decrease) in fund balance ($70,863) 41,152 $112,015 19,489 ' Fund balance - January 1 354,493 335,004 Fund balance - December 31 $395,645 $354,493 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - PARATRANSIT FUND Statement 14 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 Revenues: Intergovernmental Paratransit fees Interest 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 Residual equity transfers Fund balance - December 31 1996 Over (under) 1995 Budget Actual Budget Actual $64,819 $ - ($64,819) $32,052 19,587 - (19,587) 9,135 1,000 - (1,000) 3,677 85,406 0 (85,406) 44,864 1,500 - (1,500) 380 84,675 22 (84,653) 47,189 86,175 22 (86,153) 47,569 (769) (22) 747 (2,705) (7,307) - 7,307 (4,869) j (7,307) - 7,307 (4,869) ($8,076) (22) $8,054 (7,574) ' 47,981 (47,959) 55,555 - $0 $47,981 1 t 90 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - D.A.R.E. PROGRAM Statement 15 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 Revenues: Other revenues: Contributions Total revenues Expenditures: Supplies Other services and charges Total expenditures Revenues over (under) expenditures Other financing sources: Operating transfers in Total other financing sources INet increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 1996 Over (under) 1995 Budget Actual Budget Actual $1,000 $548 ($452) $1,680 1,000 548 (452) 1,680 4,700 2,480 (2,220) 2,643 1,625 1,131 (494) 3,180 6,325 3,611 (2,714) 5,823 (5,325) (3,063) 2,262 (4,143) 5,325 5,325 - 3,500 5,325 5,325 0 3,500 $0 2,262 $2,262 (643) 1,067 $3,329 1,710 $1,067 91 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, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 Revenues: Taxes Charges for services Interest 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 31 245,553 37,152 $260,789 $245,553 1996 , Over (under) 1995 Budget Actual Budget Actual $413,768 $413,768 $ - $390,348 22,150 17,291 (4,859) 16,392 - 9,219 9,219 14,198 435,918 440,278 4,360 420,938 294,607 291,313 (3,294) 274,941 70,752 65,722 (5,030) 63,396 58,838 52,012 (6,826) 54,525 9,135 8,921 (214) 13,011 433,332 417,968 (15,364) 405,873 2,586 22,310 19,724 15,065 - - - 200,000 (7,074) (7,074) - (6,664) , (7,074) (7,074) 0 193,336 ($4,488) 15,236 $19,724 208,401 245,553 37,152 $260,789 $245,553 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - PROJECT PRIDE Statement 17 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL The Year Ended December 31, 1996 IFor With Comparative Actual Amounts For The Year Ended December 31, 1995 1996 Over (Under) 1995 Budget Actual Budget Actual Revenues: Fees /program revenues $1,000 $ - ($1,000) $ - Other revenues: Contributions 2,000 - (2,000) 380 Total revenues 3,000 0 (3,000) 380 Expenditures: Personal Services 543 - (543) - Supplies 1,100 163 (937) 970 Other services and charges 1,532 1,642 110 907 Total expenditures 3,175 1,805 (1,370) 1,877 iNet increase (decrease) in fund balance ($175) (1,805) ($1,630) (1,497) Fund balance - January 1 1,805 3,302 Fund balance - December 31 $0 $1,805 93 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - FEDERAL POLICE GRANT Statement 18 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 1996 Revenues: Federal grant Interest Total revenues Expenditures: Personal services Total expenditures Revenues over (under) expenditures Other financing sources: Operating transfers in Net increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 94 100,522 Over (9,309) 86,394 (Under) 1995 Budget Actual Budget Actual $50,399 $45,036 (5,363) $43,062 - $1,839 1,839 - 50,399 46,875 (3,524) 43,062 100,522 91,213 (9,309) 86,394 100,522 91,213 (9,309) 86,394 ($50,123) (44,338) 5,785 (43,332) - 11,705 11,705 - ($50,123) (32,633) $17,490 (43,332) 76,440 119,772 $43,807 $76,440 IJ CITY OF COLUMBIA HEIGHTS, MINNESOTA 32,171 (10,405) 14,011 SPECIAL REVENUE FUND - FAST COPS 32,171 (10,405) Statement 19 STATEMENT OF REVENUES, EXPENDITURES AND (21,288) CHANGES IN FUND BALANCE - BUDGET AND ACTUAL 23,764 (7,006) 60,000 For The Year Ended December 31, 1996 - 76,363 With Comparative Actual Amounts For The Year Ended December 31, 1995 $38,712 62,476 $23,764 69,357 1996 Over (Under) 1995 Budget Actual Budget Actual Revenues: Federal grant $21,288 $30,965 $9,677 $7,005 Interest - 3,682 3,682 - Total revenues 21,288 34,647 13,359 7,005 Expenditures: Personal services Total expenditures Revenues over (under) expenditures Other financing sources: Operating transfers in Net increase (decrease) in fund balance Fund balance (deficit) - January 1 Fund balance (deficit) - December 31 42,576 32,171 (10,405) 14,011 42,576 32,171 (10,405) 14,011 (21,288) 2,476 23,764 (7,006) 60,000 60,000 - 76,363 $38,712 62,476 $23,764 69,357 69,357 $131,833 $69,357 95 Expenditures: Personal services 249,365 125,993 (123,372) CITY OF COLUMBIA HEIGHTS, MDWMOTA 10,530 2,209 (8,321) SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT STATEMENT OF REVENUES, EXPENDITURES AND 425,657 Statement 20 (373,743) CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - - - For The Year Ended December 31, 1996 6,700 - (6,700) Total expenditures 692,252 180,116 (512,136) Revenues over (under) expenditures (108,466) 1996 (71,650) Over (Under) Budget Actual Budget Revenues: Taxes $72,000 $ - ($72,000) Intergovernmental 334,586 - (334,586) Charges for services 34,100 - (34,100) Interest 22,600 - (22,600) Miscellaneous 120,500 - (120,500) Total revenues 583,786 0 (120,500) Expenditures: Personal services 249,365 125,993 (123,372) Supplies 10,530 2,209 (8,321) Other services and charges 425,657 51,914 (373,743) Loans & grants - - - Capital outlay 6,700 - (6,700) Total expenditures 692,252 180,116 (512,136) Revenues over (under) expenditures (108,466) (180,116) (71,650) Other financing sources: Operating transfers in 126,973 126,973 - Operating transfers (out) (89,169) (9,893) 79,276 Total other financing sources (uses) 37,804 117,080 79,276 Net increase (decrease) in fund balance ($70,662) (63,036) $7,626 Fund balance (deficit) - January 1 - Fund balance (deficit) - December 31 M. ($63,036) CITY OF COLUMBIA BEIGHTS, MINNESOTA SPECIAL REVENUE FUND - LOCAL LAW ENFORCEMENT BLOCK GRANT Statement 21 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1996 1996 Over (Under) Budget Actual Budget Revenues: Interest $ - $109 $109 Expenditures: Personal services 2,261 - (2,261) Revenues over (under) expenditures (2,261) 109 2,370 Other financing sources: Operating transfers in - 2,261 (2,261) Net increase (decrease) in fund balance ($2,261) 2,370 $4,631 Fund balance - January 1 - r Fund balance - December 31 $2,370 97 CITY OF COLUMBIA HEIGHTS, NHNNESOTA SPECIAL REVENUE FUND - RECREATION CONTRIBUTED PROJECTS Statement 22 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1996 With Comparative Amounts For The Year Ended December 31, 1995 Revenues: Fees /program revenues Contributions Miscellaneous Total revenues Expenditures: Supplies Other services and charges Total expenditures Revenues over expenditures Fund balance - January 1 Fund balance - December 31 98 1996 1995 $ - $6,087 31,267 35,771 - 172 31,267 42,030 20,470 25,166 5,168 12,657 25,638 37,823 5,629 4,207 8,821 4,614 $14,450 $8,821 CITY OF COLUMBIA BEIGHTS, MINNESOTA SPECIAL REVENUE FUND - CONTRIBUTED PROJECTS Statement 23 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1996 With Comparative Amounts For The Year Ended December 31, 1995 1996 1995 �j Contributions $16,275 $9,247 Expenditures: Supplies 4,784 11,498 Other services and charges 240 473 _. Capital outlay 10,292 9,476 Total expenditures 15,316 21,447 Net increase (decrease) in fund balance 959 (12,200) Fund balance - January 1 12,399 24,599 Fund balance - December 31 $13,358 $12,399 1 99 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - PARKING RAMP Statement 24 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1996 With Comparative Amounts For The Year Ended December 31, 1995 1996 1995 Revenues: Interest $12,102 $14,352 Expenditures - - Net increase in fund balance 12,102 14,352 Fund balance - January 1 617,484 603,132 Fund balance - December 31 $629,586 $617,484 i. i 100 CITY OF COLUMBIA HEIGHTS MINNESOTA SPECIAL REVENUE FUND - CONFISCATED PROPERTY Statement 25 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1996 With Comparative Amounts For The Year Ended December 31, 1995 1996 1995 Revenues: Confiscated property $ - $306 Expenditures - - Revenues over expenditures 0 306 Fund balance - January 1 2,928 2,622 Fund balance - December 31 $2,928 $2,928 101 CH 102 CITY OF COLUMMIAHEIGHTS, MMNESOTA CITY OF COLUMBIA HEIGHTS, DHNNESOTA SPECIAL REVENUE FUND - HOUSING MORTGAGE Statement 26 CSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1996 With Comparative Amounts For The Year Ended December 31, 1995 Revenues: Interest $1,235 Expenditures - Revenues over expenditures 1,235 Fund balance - January 1 467,725 Fund balance - December 31 $468,960 1995 $1,464 1,464 466,261 $467,725 103 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS - ECONOMIC DEVELOPMENT AUTHORITY (COMPONENT UNIT) COMBINING BALANCE SHEET December 31, 1996 Assets Cash and investments Receivables: Accounts Interest Loans Due from other governmental units Prepayments Real estate held for resale Total assets Liabilities and Fund Balance Liabilities: Accounts payable 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 maintenance Undesignated Total fund balance Total liabilities and fund balance 104 Anoka Parkview County Villa CDBG North $ - $171,569 - 1,348 - 1,300 171,199 - 182,258 11,366 - 105 63,000 - $416,457 $185,688 $540 2,645 97,480 234,199 334,864 81,593 81,593 $416,457 $31,943 13,304 12,166 8,725 66,138 105 2,039 117,406 119,550 $185,688 105 Statement 27 ' Economic Development Parkview Authority Villa Rental Administration Section 8 South Housing Totals $ - $405,518 $424,055 $15,121 $1,016,263 - - 1,348 _ 3,279 3,503 = 8,082 - - - - 171,199 - 14,563 - - 208,187 225 - 52 - 382 - - 63,000 $225 $423,360 $427,610 $15,121 $1,468,461 $5 $592 $12,303 $529 $45,912 - 1,977 13,342 - 31,268 32,970 12,744 143,194 - 386,577 431 11,257 644,630 - - 6,560 2,337 17,622 32,975 389,146 32,636 26,867 882,626 ' 225 - 52 - 382 - - - - 81,593 - - - - 2,039 - - 394,922 - 394,922 (32,975) 34,214 - (11,746) 106,899 (32,750) 34,214 394,974 (11,746) 585,835 _ $225 $423,360 $427,610 $15,121 $1,468,461 105 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS - ECONOMIC DEVELOPMENT AUTHORITY (COMPONENT UNIT) COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1996 Revenues: Intergovernmental Fees /program revenues Rents Interest Other revenues: Miscellaneous Total revenues Expenditures: Other: 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 (deficit) - January 1 Fund balance (deficit) - December 31 106 Anoka County CDBG $361,263 13,806 2,487 377,556 79 114,741 230,840 345,660 31,896 143,638 (111,397) 32,241 64,137 17,456 $81,593 Parkview Villa North $58,028 216,614 8,338 11,510 294,490 12,037 12,866 221,572 13,037 259,512 34,978 (2,000) (2,000) 32,978 86,572 $119,550 107 Statement 28 Economic Development Parkview Authority Villa Rental Administration Section 8 South Housing Totals $ - $148,956 $ $52 $568,299 2,378 2,378 - - 175,069 43,551 435,234 - 21,398 22,473 - 66,015 ' - 7,259 2,235 558 24,049 2,378 177,613 199,777 44,161 1,095,975 - 52,347 5,984 - 70,368 ' 473 759 6,327 873 21,377 32,353 85,293 124,004 52,739 630,702 10 - 419 2,795 247,101 ' 32,836 138,399 136,734 56,407 969,548 (30,458) 39,214 63,043 (12,246) 126,427 _ - - 500 144,138 (2,292) (5,000) (1,000) - (121,689) ' (2,292) (5,000) (1,000) 500 22,449 (32,750) 34,214 62,043 (11,746) 148,876 - - 332,931 - 436,959 ($32,750) $34,214 $394,974 ($11,746) $585,835 107 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND- ECONOMIC DEVELOPMENT AUTHORITY - Statement 29 ANOKA COUNTY CDBG - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 Revenues: Federal grant Interest Other Total revenues Expenditures: Personal services Supplies Other services and charges Loans & grants Contingencies Capital outlay Total expenditures Revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers (out) Total other financing sources (uses) Net increase in fund balance Fund balance - January 1 Fund balance - December 31 1996 12,536 Over (12,536) 3,536 (Under) 1995 Budget Actual Budget Actual $370,000 $361,263 ($8,737) $349,936 - 13,806 13,806 6,112 - 2,487 2,487 6,411 370,000 377,556 2,487 362,459 12,536 - (12,536) 3,536 200 79 (121) 349 ' 34,540 114,741 80,201 32,365 110,000 - (110,000) 26,984 5,033 - (5,033) - 200,000 230,840 30,840 208,064 362,309 345,660 (16,649) 271,298 7,691 31,896 24,205 91,161 ' - 143,638 143,638 - (2,000) (111,397) (109,397) (110,420 (2,000) 32,241 34,241 (110,420) ' $5,691 64,137 $58,446 (19,259) 17,456 36,715 $81,593 $17,456 108 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - ECONOMIC DEVELOPMENT AUTHORITY- Statement 30 PARKVIEW VILLA NORTH - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 Revenues: Federal grant Rents Interest Other Total revenues Expenditures: Personal services Supplies Other services and charges Capital outlay Total expenditures Revenues over (under) expenditures Other financing sources (uses): Operating transfers (out) Net increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 1996 Over (Under) 1995 Budget Actual Budget Actual $ - $58,028 222,156 216,614 4,100 8,338 28,300 11,510 254,556 294,490 $58,028 $182,736 (5,542) 212,633 4,238 5,274 (16,790) 19,021 (16,790) 419,664 12,037 12,037 - 5,352 16,195 12,866 (3,329) 8,317 223,070 221,572 (1,498) 212,260 6,115 13,037 6,922 133,238 257,417 259,512 2,095 359,167 (2,861) 34,978 37,839 60,497 (2,000) (2,000) - (1,716) ($4,861) 32,978 $37,839 58,781 86,572 $119,550 27,791 $86,572 109 1 II 110 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND- ECONOMIC DEVELOPMENT AUTHORITY - Statement 31 ' PARKVIEW VILLA SOUTH - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 1996 Over (Under) 1995 Budget Actual Budget Actual ' Revenues: Rents $175,884 $175,069 ($815) $172,461 Interest 7,100 22,473 15,373 22,293 ' Other 2,160 2,235 75 9,216 Total revenues 185,144 199,777 14,633 203,970 ' Expenditures: Personal services 5,984 5,984 - 10,694 Supplies 7,140 6,327 (813) 4,784 , Other services and charges 114,400 124,004 9,604 105,786 Capital outlay 8,955 419 (8,536) 1,463 Total expenditures 136,479 136,734 255 122,727 ' Revenues over expenditures 48,665 63,043 14,378 81,243 Other financing sources (uses): Operating transfers (out) (11000) (11000) - (792) Net increase in fund balance $47,665 62,043 $14,378 80,451 r Fund balance - January 1 332,931 252,480 , Fund balance - December 31 $394,974 $332,931 1 II 110 1 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. 111 CITY OF COLUMBIA HEIGHTS, MINNESOTA DEBT SERVICE FUNDS $1,687,328 $ - $ - $ - $1,687,328 Statement 32 COMBINING BALANCE SHEET - - - - - 11,097 December 31, 1996 8,364 - - - 8,364 4,900 With Comparative Totals For December 31, 1995 144,406 - - - 144,406 140,218 Interest 11,599 Tax Tax Total assets Capital Increment Increment Tax Appreciation Refunding Refunding Increment Bonds Bonds Bonds Totals Bonds of 1990 of 1991 of 1993 1996 1995 Assets Cash and investments $1,687,328 $ - $ - $ - $1,687,328 $2,270,042 Taxes: - - - - - 11,097 Unremitted 8,364 - - - 8,364 4,900 Delinquent 144,406 - - - 144,406 140,218 Interest 11,599 - - - 11,599 13,513 Total assets $1,851,697 $0 $0 $0 $1,851,697 $2,428,673 Liabilities and Fund Balance Liabilities: Accounts payable $9,625 $ - $ - $ - $9,625 $ - Due to other governmental units - - - - - 11,097 Due to other funds 854,379 - - - 854,379 854,379 Deferred revenue: Property taxes - delinquent 144,406 - - - 144,406 140,218 Total liabilities 1,008,410 0 0 0 1,008,410 1,005,694 Fund balance: Unreserved: Designated for debt service 843,287 - - - 843,287 1,422,979 Total liabilities and fund balance $1,851,697 $0 $0 $0 $1,851,697 $2,428,673 112 'For CITY OF COLUMBIA HEIGHTS, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES CHANGES IN FUND BALANCE The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 AND Statement 33 Operating transfers in Capital Tax Tax (1,459,268) Total other financing sources (uses) (1,459,268) Tax Appreciation Increment Increment Increment Bonds Refunding Refunding Totals Bonds of 1990 Bonds of 1991 Bonds of 1993 1996 1995 Revenues: Tax increments $951,424 $ - $ - $ - $951,424 $1,572,680 Interest 74,419 - - - 74,419 103,408 Total revenues 1,025,843 0 0 0 1,025,843 1,676,088 Expenditures: Debt service: ' Principal retirement - - 965,000 190,000 1,155,000 1,055,000 Interest and fiscal charges - - 289,455 14,813 304,268 357,961 Miscellaneous 16,620 - - 16,620 11,672 ' Total expenditures 16,620 0 1,254,455 204,813 1,475,888 1,424,633 ' Revenues over (under) expenditures 1,009,223 Other financing sources (uses): Operating transfers in - Operating transfers (out) (1,459,268) Total other financing sources (uses) (1,459,268) Net increase (decrease) in fund balance (450,045) Fund balance - January 1 0 (1,254,455) (204,813) (450,045) 251,455 1,254,455 204,813 1,459,268 1,412,961, - - (1,459,268) (1,412,961) 0 1,254,455 204,813 0 0 0 0 0 (450,045) 251,455 1,422,979 - - - 1,422,979 1,171,524 Residual equity transfers (129,647) - - - (129,647) - Fund balance - December 31 $843,287 $0 $0 $0 $843,287 $1,422,979 1 113 CH 114 CITY OF COLUMBIAHEIGIITS, MINNESOTA rCAPITAL 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. t Medtronic Development Fund 406 - used to account for revenues and expenditures associated p p with an agreement with Medtronic Corporation related to a major expansion project. 1 Capital Improvement Fund 408 - used for projects involvin g S tate 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. 115 CH 116 CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA PROJECT FUNDS Statement 34 'CAPITAL COMBINING BALANCE SHEET Page 1 of 2 December 31, 1996 With Comparative Totals For December 31, 1995 Water Downtown Capital Surface Parking ' Improvement Management Maintenance Fund 401 Fund 403 Fund 405 Assets Cash and investments $68,580 $18,788 $46,483 Receivables: Accounts - - - Special assessments: Unremitted - - - Delinquent - - Deferred _ Interest - - 433 Loans Due from other governmental units - - - Prepayments - - - Real estate held for resale - - - ' Total assets $68,580 $18,788 $46,916 Liabilities and Fund Balance Liabilities: Accounts payable $ - $ - $2,164 Accrued salaries and withholdings payable - - - Contracts payable - retained percentage - - - t Notes payable - - Due to other funds _ Deferred revenue - - - ' Deposits - - - Total liabilities 0 0 2,164 ' Fund balance: Reserved for prepayments - - - Reserved for real estate held for resale - - - Unreserved: Designated for subsequent years' expenditures - - - Undesignated 68,580 18,788 44,752 Total fund balance (deficit) 68,580 18,788 44,752 Total liabilities and fund balance $68,580 $18,788 $46,916 117 CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1996 With Comparative Totals For December 31, 1995 Assets Cash and investments Receivables: Accounts Special assessments: Unremitted Delinquent Deferred Interest Loans Due from other governmental units 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 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 118 Medtronic Development Fund 406 $0 38,156 38,156 (38,156) (38,156) $0 Capital Improvement Fund 408 $19,876 $19,876 0 19,876 19,876 $19,876 Sheffield Redevelopment Fund 410 18,000 8,904 170,600 $197,504 973,855 973,855 170,600 (946,951) (776,351) $197,504 r Statement 34 Page 2of2 r Capital Improvement General Capital Capital Capital Government Improvement Improvement Infrastructure Equipment Buildings Parks Projects Replacement Replacement Totals Fund 411 Fund 412 Fund 415 Fund 430 Fund 431 1996 1995 $183,461 $90,435 $324,681 $877,209 $3,077,082 $4,706,595 $4,899,776 ' - - - - - 18,000 18,000 - - 1,498 - - 1,498 550 - 53,431 - - 53,431 82,630 = 158,269 158,269 186,323 2,281 1,194 2,336 6,172 26,421 38,837 41,161 r = 29,493 29,493 _ _ _ _ _ - 1,151 r- - - - - 170,600 224,603 $185,742 i $121,122 $540,215 $883,381 $3,103,503 $5,185,627 $5,465,873 ' $ - $3,178 $ - $ - $ - $5,342 $96,909 - - 2,840 - - 2,840 15 13 3,861 - - 3,874 740 - _ 36,000 - - - - - 1,012,011 1,043,595 - - 211,700 - - 211,700 269,598 - - - - - 1,125 13 7,039 214,540 0 0 1,235,767 1,447,982 r_ - _ - - - 1,151 - - - - - 170,600 224,603 r10,504 - - 3,162 91,565 105,231 17,040 175,225 114,083 325,675 880,219 3,011,938 3,674,029 3,775,097 ' 185,729 114,083 325,675 883,381 3,103,503 3,949,860 4,017,891 $185,742 $121,122 $546,215 $883,381 $3,103,503 $5,185,627 $5,465,873 119 CH 120 CITY OF COLUMBIAHEIGHTS, MRiNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS Statement 35 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES Page 1 of 2 IN FUND BALANCE For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 Revenues: Special assessments Interest Other revenues: Miscellaneous Proceeds from sale of land Other refunds Total revenues Expenditures: Other project expenditures Revenue over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers (out) Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance (deficit) - January 1 Residual equity transfer Fund balance (deficit) - December 31 Capital Improvement Fund 401 68,200 68,200 53,070 15,130 29,028 29,028 44,158 24,422 $68,580 Water Surface Management Fund 403 0 0 0 0 18,788 $18,788 Downtown Parking Maintenance Fund 405 2,779 2,779 8,476 (5,697) 0 (5,697) 50,449 $44,752 121 CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 , Expenditures: Other project expenditures Revenue over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers (out) Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance (deficit) - January 1 Residual equity transfer Fund balance (deficit) - December 31 122 38,156 (38,156) 0 (38,156) ($38,156) Capital Improvement Fund 408 0 0 0 0 19,876 $19,876 Sheffield Redevelopment Fund 410 $ ,428 1,402 ' 60,002 61,832 83,758 (21,926) r 71,040 , 71,040 49,114 (825,465) ' ($77L,3511 351 i Medtronic Development Fund 406 Revenues: Special assessments $ - Interest - Other revenues: Miscellaneous - Proceeds from sale of land - Other refunds - Total revenues 0 Expenditures: Other project expenditures Revenue over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers (out) Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance (deficit) - January 1 Residual equity transfer Fund balance (deficit) - December 31 122 38,156 (38,156) 0 (38,156) ($38,156) Capital Improvement Fund 408 0 0 0 0 19,876 $19,876 Sheffield Redevelopment Fund 410 $ ,428 1,402 ' 60,002 61,832 83,758 (21,926) r 71,040 , 71,040 49,114 (825,465) ' ($77L,3511 351 i Statement 35 Page 2 of 2 Capital Improvement General Capital Capital Multi Use Capital Government Improvement Improvement Redevelopment Infrastructure Equipment Buildings Parks Projects Plan Replacement Replacement Totals Fund 411 Fund 412 Fund 415 Fund 420 Fund 430 Fund 431 1996 1995 ' $ - $ - $165,850 $ $ - $ - $165,850 $122,328 14,630 7,657 14,985 _ 39,595 169,507 249,581 315,205 38,029 98,688 - - 23,042 229,361 347,505 = 60,002 93,483 _ - - - - 525 525 11 ' 14,630 45,686 279,523 0 39,595 193,074 705,319 878,532 19,677 330,623 214,096 9,625 3,950 538,920 1,300,351 1,307,843 (5,047) (284,937) 65,427 (9,625) 35,645 (345,846) (595,032) (429,311 - 129,000 - - 170,000 190,000 589,068 533,063 (70,000) - (1,692) - - - (71,692) (60,821) (70,000) 129,000 (1,692) 0 170,000 190,000 517,376 472,242 (75,047) (155,937) 63,735 (9,625) 205,645 (155,846) (77,656) 42,931 ' 260,776 270,020 261,940 (120,022) 677,736 3,259,349 3,897,869 3,854,938 - - - 129,647 - - 129,647 - $185,729 $114,083 $325,675 $0 $883,381 $3,103,503 $3,949,860 $3,897,869 123 CH 124 MY OF COLUMBIAHEIGHTS, MP4NESOTA 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 of 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. 125 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENTERPRISE FUNDS Statement 36 COMBINING BALANCE SHEET December 31, 1996 With Comparative Totals For December 31, 1995 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: Municipal Funds 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 126 Totals Water Sewer Refuse Liquor 1996 1995 $844,834 $1,509,207 $833,956 $716,688 $3,904,685 $3,753,394 277,351 238,875 259,600 100 775,926 818,414 8,952 12,594 7,141 6,300 34,987 34,770 - 95,602 22,277 2,406 120,285 65,214 - 771,921 - 169,000 940,921 982,271 228 92 - 268 588 66,522 2,453 - - 627,013 629,466 608,495 1,133,818 2,628,291 1,122,974 1,521,775 6,406,858 6,329,080 - 394,756 - - 394,756 99,149 0 394,756 0 0 394,756 99,149 45,223 36,586 - 4,360 86,169 86,169 256,171 56,455 6,000 182,681 501,307 480,849 2,873,122 3,364,888 2,890 104,538 6,345,438 6,409,412 265,430 480,899 8,208 365,700 1,120,237 11154,504 278,462 58,482 - - 336,944 11,539 3,718,408 3,997,310 17,098 657,279 8,390,095 8,142,473 1,786,484 2,130,183 7,107 454,442 4,378,216 4,370,890 1,931,924 1,867,127 9,991 202,837 4,011,879 3,771,583 ' $3,065,742 $4,890,174 $1,132,965 $1,724,612 $10,813,493 $10,199,812 $2,355 $28,059 $129 $262,004 $292,547 $295,354 21,790 16,605 - 58,936 97,331 84,327 - 1,723 - - 1,723 - 59,350 - - 59,996 119,346 170,248 3,744 - - - 3,744 3,744 87,239 46,387 129 380,936 514,691 553,673 ' 4,198 4,198 - - 8 , 396 - 298,631 453,000 551,332 - - - - - 849,963 453,000 915,192 453,000 ' 755,829 555,530 0 0 1,311,359 1,368,192 543,097 2,206,932 - - 2,750,029 2,583,421 I 1,679,577 2,081,325 1,132,836 1,343,676 6,237,414 5,694,526 2,222,674 4,288,257 1,132,836 1,343,676 8,987,443 8,277,947 2,978,503 4,843,787 1,132,836 1,343,676 10,298,802 9,646,139 , $3,065,742 $4,890,174 $1,132,965 $1,724,612 $10,813,493 $10,199,812 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 Statement 37 Operating transfers in 49,283 207,402 - Totals 256,685 Water Sewer Refuse Liquor 1996 1995 Operating revenues: 973,746 Total operating transfers (80,255) (80,255) (107,454) (285,321) Charges for services: 588,236 Net income 50,683 407,257 69,625 116,702 Customer service $28,122 $ $ $ - $28,122 $16,802 Penalties 31,027 _ = 3,842,065 31,027 28,460 Sewer service charges - 1,073,156 - - 1,073,156 1,061,075 Refuse service charges - - 1,265,163 - 1,265,163 1,293,894 Charges for sales: Water 1,150,159 1,150,159 1,113,842 Meter 4,892 - - - 4,892 4,766 1 Liquor - - 1,721,680 1,721,680 1,678,742 Beer _ 3,078,252 3,078,252 2,820,926 Wine - - - 578,362 578,362 521,223 Other - - - 633,613 633,613 669,134 Total operating revenues 1,214,200 1,073,156 1,265,163 6,011,907 9,564,426 9,208,864 Operating expenses: Cost of sales and services 701,350 749,114 1,170,270 - 2,620,734 1,345,781 Distribution 373,734 220,895 594,629 615,064 Administration 10,143 10,038 11,058 - 31,239 25,583 Collection and disposal - - - 1,138,599 Recycling _ 10,832 = 10,832 12,307 Hazardous waste - - 891 891 1,608 Cost of goods sold - - - 4,774,908 4,774,908 4,564,629 Operating expense - - - 835,352 835,352 785,752 Depreciation 70,465 102,026 1,570 45,642 219,703 211,952 Total operating expenses 1,155,692 1,082,073 1,194,621 5,655,902 9,088,288 8,701,275 Net income (loss) from operations 58,508 (8,917) 70,542 356,005 476,138 507,589 Nonoperating revenues (expenses): Interest income 57,433 127,678 45,814 40,415 271,340 302,227 Intergovernmental 60 ,172 60,172 64,131 Miscellaneous revenues 15,484 401,275 551 5,603 422,913 93,129 Miscellaneous expenses (487) (32,524) - - (33,011) (78,103) Total nonoperating revenues (expenses) 72,430 496,429 106,537 46,018 721,414 381,384 Net income before operating transfers 130,938 487,512 177,079 402,023 1,197,552 888,973 Operating transfers: Operating transfers in 49,283 207,402 - - 256,685 385,510 Operating transfers (out) (129,538) (287,657) (107,454) (285,321) (809,970) 973,746 Total operating transfers (80,255) (80,255) (107,454) (285,321) 553,28 588,236 Net income 50,683 407,257 69,625 116,702 644,267 300,737 Credit for depreciation on contributed assets 26,294 38,935 - - 65,229 65,229 Retained earnings - January 1 2,145,697 3,842,065 1,063,211 1,226,974 8,277,947 7,911,981 Retained earnings - December 31 $2,222,674 $4,288,257 $1,132,836 $1,343,676 $8,987,443 $8,277,947 1 127 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 1996 With Comparative Totals For the Year Ended December 31, 1995 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: Statement 38 1 Totals Water Sewer Refuse Liquor 1996 1995 $1,212,255 $1,097,589 $1,306,207 $6,011,949 $9,628,000 $9,154,146 (859,417) (824,070) (1,192,799) (5,178,029) (8,054,315) (7,645,142) (218,799) (111,279) (154) (478,057) (8081289) (819,858) 15,484 94,361 60,723 5,603 176,171 157,260 (487) (32,524) - - (33,011) (78,103) 149,036 224,077 173,977 361,466 908,556 768,303 49,283 207,402 - - 256,685 385,510 (129,538) (287,657) (107,454) (285,321) (809,970) (973,746) (80,255) (80,255) (107,454) (285,321) (553,285) (588,236) Acquisition of fixed assets (313,225) (153,230) (6,670) (3,858) (476,983) (204,584) (32,524) Disposition of fixed assets 1,205 674 - - 1,879 77,785 45,642 Net cash flows from capital and related financing activities (312,020) (152,556) (6,670) (3,858) (475,104) (126,799) 42,488 Cash flows from investing activities: - (35,744) 15,338 142 (20,264) 114,039 - Interest received on investments 58,401 127,758 45,437 39,528 271,124 295,187 - Net cash flows from investing activities 58,401 127,758 45,437 39,528 271,124 295,187 (20,971) 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 Total adjustments Net cash flows from operating activities (184,838) 119,024 105,290 111,815 151,291 348,455 1,029,672 1,390,183 ' 728,666 604,873 3,753,394 3,404,939 $844,834 $1,509,207 $833,956 $716,688 $3,904,685 $3,753,394 $58,508 ($8,917) $70,542 $356,005 $476,138 $519,026 15,484 94,361 60,723 5,603 176,171 54,712 (487) (32,524) - - (33,011) (26,810) 70,465 102,026 1,570 45,642 219,703 247,750 (1,945) 18,827 25,706 (100) 42,488 47,775 - (35,744) 15,338 142 (20,264) 114,039 - 41,350 - - 41,350 (281,000) (45) 66,247 - (268) 65,934 (57,846) (219) - - (20,752) (20,971) (30,003) (1,407) 28,365 98 (28,140) (1,084) (17,141) 3,438 2,835 - 6,731 13,004 17,498 5,244 (52,749) - (3,397) (50,902) 97,815 90,528 232,994 103,435 5,461 432,418 166,789 $149,036 $224,077 $173,977 $361,466 $908,556 $685,815 Noncash investing, capital and financing activities: During 1996, the City conveyed ownership of an interceptor to the MCES for $330,414 of credits which will be amortized against MCES sewer billings over the next 15 years. 128 CITY OF COLUMBIA HEIGHTS, MIlVNESOTA WATER UTILITY FUND BALANCE SHEET December 31, 1996 With Comparative Totals For December 31, 1995 Statement 39 Capital Equipment Capital Operating Replacement Construction Totals Account Account Account 1996 1995 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: Municipal Funds 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 $583,626 $174,799 $86,409 $844,834 $1,029,672 277,351 - - 277,351 275,406 5,525 1,456 1,971 8,952 9,920 228 - - 228 183 2,453 - - 2,453 2,234 869,183 176,255 88,380 1,133,818 1,317,415 45,223 - - 45,223 45,223 256,171 - - 256,171 250,325 2,873,122 - - 2,873,122 2,877,579 265,430 - - 265,430 303,420 - - 278,462 278,462 11,539 3,439,946 0 278,462 3,718,408 3,488,086 1,786,484 - - 1,786,484 1,801,915 1,653,462 0 278,462 1,931,924 1,686,171 $2,522,645 $176,255 $366,842 $3,065,742 $3,003,586 $2,355 $ - $ - $2,355 $3,762 21,790 - - 21,790 18,352 59,350 - - 59,350 54,106 3,744 - - 3,744 3,744 87,239 0 0 87,239 79,964 4,198 - - 4,198 - 298,631 - - 298,631 324,925 453,000 - - 453,000 453,000 755,829 0 0 755,829 777,925 - 176,255 366,842 543,097 525,394 1,679,577 - - 1,679,577 1,620,303 1,679,577 176,255 366,842 2,222,674 2,145,697 2,435,406 176,255 366,842 2,978,503 2,923,622 $2,522,645 $176,255 $366,842 $3,065,742 $3,003,586 129 CITY OF COLUMBIA HEIGHTS, MU04ESOTA WATER UTILITY FUND Statement 40 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 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): Interest income Miscellaneous revenues Miscellaneous expenses Total nonoperating revenues (expenses) Net income before operating transfers Operating transfers: Operating transfers in Operating transfers (out) Total operating transfers Net income (loss) Credit for depreciation on contributed assets Retained earnings - January 1 Retained earnings - December 31 130 F1 Capital , Equipment Capital Operating Replacement Construction Totals Account Account Account 1996 1995 $28,122 - 31,027 - $28,122 $16,802 31,027 28,460 1,150,159 - - 1,150,159 1,113,842 4,892 - - 4,892 4,766 1,214,200 0 0 1,214,200 1,163,870 701,350 - - 701,350 622,368 373,734 - - 373,734 386,137 10,143 - - 10,143 7,478 70,465 - - 70,465 72,645 1,155,692 0 0 1,155,692 1,088,628 58,508 0 0 58,508 75,242 35,447 9,339 12,647 57,433 75,912 484 - 15,000 15,484 6,619 (487) - - (487) (7,110) 35,444 9,339 27,647 72,430 75,421 , 93,952 9,339 27,647 130,938 150,663 34,283 15,000 - 49,283 36,086 (95,255) (26,797) (7,486) (129,538) (107,542) (60,972) (11,797) (7,486) (80,255) 71,456 32,980 (2,458) 20,161 50,683 79,207 , 26,294 - - 26,294 26,294 1,620,303 178,713 346,681 2,145,697 2,040,196 $1,679,577 $176,255 $366,842 $2,222,674 $2,145,697 CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UTILITY FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1996 With Comparative Amounts For the Year Ended December 31, 1995 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 Disposition of fixed assets Net cash flows from capital and related financing activities Cash flows from investing activities: Interest received on investments Net cash flows from investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income to Net cash flows from operating activities Operating income Adjustments to reconcile operating income to net cash flows from operating activities: Miscellaneous revenues Miscellaneous expenses Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in 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 1996 $1,212,255 (859,417) (218,799) 15,484 (487) 149,036 49,283 (129,538) (80,255) (313,225) 1,205 (312,020) Statement 41 1QQS $1,140,377 (775,692) (235,638) 6,619 (7,110) 128,556 36,086 (107,542) (71,456) (55,004) (55,004) 58,401 73,199 58,401 73,199 (184,838) 1,029,672 $844,834 75,295 954,377 $1,029,672 $58,508 $75,242 15,484 (487) 70,465 (1,945) (45) (219) (1,407) 3,438 5,244 90,528 $149,036 6,619 (7,110) 72,645 (23,493) 96 (584) 842 (1,178) 1,733 3,744 53,314 $128,556 131 CITY OF COLUMBIA HEIGHTS, Me4NESOTA SEWER UTILITY FUND BALANCE SHEET December 31, 1996 With Comparative Totals For December 31, 1995 Statement 42 r Capital Equipment Capital Operating Replacement Construction Totals Account Account Account 1996 1995 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: Municipal Funds Customers Total contributed capital Retained earnings: Reserved for capital replacement/construction Unreserved Total retained earnings Total fund equity Total liabilities and fund equity 132 $118,799 $234,648 $1,155,760 $1,509,207 $1,390,183 238,875 - - 238,875 257,702 1,684 1,896 9,014 12,594 12,674 95,602 - - 95,602 25,051 - - 771,921 771,921 813,271 92 - - 92 66,339 455,052 236,544 1,936,695 2,628,291 2,565,220 551,332 - - 551,332 394,756 - - 394,756 99,149 590,267 - 236,544 1,970,388 36,586 - - 36,586 36,586 56,455 - - 56,455 47,843 3,364,888 - - 3,364,888 3,424,405 480,899 - - 480,899 481,704 - - 58,482 58,482 - 3,938,828 0 58,482 3,997,310 3,990,538 2,130,183 - - 2,130,183 2,154,639 1,808,645 0 58,482 1,867,127 1,835,899 $2,658,453 $236,544 $1,995,177 $4,890,174 $4,500,268 $4,993 $ - $23,066 $28,059 $1,417 16,605 - - 16,605 13,770 - - 1,723 1,723 - - - - - 52,749 21,598 0 24,789 46,387 67,936 4,198 - - 4,198 - 551,332 - - 551,332 590,267 555,530 0 0 555,530 590,267 - 236,544 1,970,388 2,206,932 2,058,027 2,081,325 - - 2,081,325 1,784,038 2,081,325 236,544 1,970,388 4,288,257 3,842,065 2,636,855 236,544 1,970,388 4,843,787 4,432,332 $2,658,453 $236,544 $1,995,177 $4,890,174 $4,500,268 CITY OF COLUMBIA HEIGHTS, MM14NESOTA SEWER UTILITY FUND Statement 43 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS IFor The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 Capital Equipment Capital Operating Replacement Construction Totals Account Account Account 1996 1995 Operating revenues: Charges for sales and services: Sewer service charges $1,073,156 $ - $ - $1,073,156 $1,061,075 Operating expenses: Cost of sales and services 749,114 749,114 723, 413 Distribution 220,895 - = 220,895 228,927 Administration 10,038 - - 10,038 7,460 Depreciation 102,026 - - 102,026 93,024 Total operating expenses 1,082,073 0 0 1,082,073 1,052,824 Net income from operations (8,917) 0 0 (8,917) 8,251 Nonoperating revenues (expenses) Interest income 27,994 12,167 87,517 127,678 133,141 Miscellaneous revenues 370,439 30,836 401,275 70,896 Miscellaneous expenses (2,631) _ (29,893) (32,524) (53,209) Total nonoperating revenues (expenses) 395,802 12,167 88,460 496,429 150,828 Net income before operating transfer 386,885 12,167 88,460 487,512 159,079 Operating transfers: Operating transfers in 79,562 25,000 102,840 207,402 349,424 Operating transfers (out) (208,095) (34,096) (45,466) (287,657) (420,880) Total operating transfers (128,533) (9,096) 57,374 (80,255) (71,456) Net income 258,352 3,071 145,834 407,257 87,623 Credit for depreciation on contributed assets 38,935 - - 38,935 38,935 Retained earnings - January 1 1,784,038 233,473 1,824,554 3,842,065 3,715,507 Retained earnings - December 31 $2,081,325 $236,544 $1,970,388 $4,288,257 $3,842,065 133 CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1996 With Comparative Amounts For the Year Ended December 31, 1995 A Statement 44 1 1996 1995 Cash flows from operating activities: Cash received from customers $1,097,589 $1,036,706 Cash paid to suppliers for goods and services (824,070) (799,455) Cash payments to employees for services (111,279) (119,590) Miscellaneous revenues 94,361 70,896 Miscellaneous expenses (32,524) (53,209) Net cash flows from operating activities 224,077 135,348 Cash flows from noncapital financing activities: Operating transfers in 207,402 349,424 Operating transfers (out) (287,657) (420,880) Net cash flows from noncapital financing activities (80,255) (71,456) Cash flows from capital and related financing activities: Acquisition of fixed assets (153,230) (124,952) Disposition of fixed assets 674 - Net cash flows from capital and related financing activities (152,556) (124,952) Cash flows from investing activities: Interest received on investments 127,758 131,447 Net cash flows from investing activities 127,758 131,447 Net increase in cash and cash equivalents 119,024 70,387 Cash and cash equivalents - January 1 1,390,183 1,319,796 Cash and cash equivalents - December 31 $1,509,207 $1,390,183 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) ($8,917) $8,251 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues 94,361 70,896 Miscellaneous expenses (32,524) (53,209) Depreciation expense 102,026 93,024 Changes in assets and liabilities: (Increase) decrease in accounts receivable 18,827 (24,369) (Increase) decrease in due from other governmental units (35,744) 28,179 (Increase) decrease in due from other funds 41,350 39,760 (Increase) decrease in prepayments 66,247 (8,722) Increase (decrease) in accounts payable 28,365 (16,874) Increase ( decrease) in accrued salaries and withholdings payable 2,835 (1,588) Increase (decrease) in due to other governmental units (52,749) - Total adjustments 232,994 127,097 Net cash flows from operating activities $224,077 $135,348 Noncash investing, capital and financing activities: During 1996, the City conveyed ownership of an interceptor to the MCES for $330,414 of credits which will be amortized against MCES sewer billings over the next 15 years. 134 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND Statement 45 BALANCE SHEET December 31, 1996 With Comparative Amounts For December 31, 1995 1996 1995 Assets Current assets: Cash and cash equivalents $833,956 $728,666 Receivables: Accounts 259,600 285,306 Interest 7,141 6,764 Due from other governmental units 22,277 37,615 Total current assets 1,122,974 1,058,351 Fixed assets: Buildings 6,000 - �. Improvements other than buildings 2,890 2,890 Machinery and equipment 8,208 7,538 Total fixed assets 17,098 10,428 Less: accumulated depreciation 7,107 5,537 Net fixed assets 9,991 4,891 Total assets $1,132,965 $1,063,242 Liabilities and Fund Equity Current liabilities: Accounts payable $129 $31 Total liabilities 129 31 ' Fund equity: Retained earnings: Unreserved 1,132,836 1,063,211 Total liabilities and fund equity $1,132,965 $1,063,242 135 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND Statement 46 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1996 With Comparative Amounts For The Year Ended December 31, 1995 Operating revenues: Refuse service charges Operating expenses: Cost of sales and services Administration 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 31 136 1996 $1,265,163 $1,293,894 1,170,270 11,058 10,832 891 1,570 1,194,621 70,542 45,814 60,172 551 106,537 177,079 (107,454) 69,625 1,063,211 $1,132,836 1,138,599 10,645 12,307 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 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND Statement 47 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1996 With Comparative Amounts For the Year Ended December 31, 1995 Cash flows from operating activities: Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues Net cash flows from operating activities Cash flows from noncapital financing activities: Operating transfers (out) Cash flows from capital and related financing activities: Acquisition of fixed assets Cash flows from investing activities: Interest received 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 Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in due from other governmental units Increase (decrease) in accounts payable Total adjustments Net cash flows from operating activities 1996 $1,306,207 (1,192,799) (154) 60,723 173,977 1995 $1,284,817 (1,178,006) 74,787 181,598 (107,454) (107,721) (6,670) (1,931) 45,437 105,290 728,666 $833,956 49,720 121,666 607,000 $728,666 $70,542 $129,517 60,723 1,570 25,706 15,338 98 103,435 $173,977 74,787 1,218 (9,077) (14,209) (638) 52,081 $181,598 137 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND BALANCE SHEET December 31, 1996 With Comparative Amounts For December 31, 1995 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 138 1996 $716,688 100 6,300 2,406 169,000 268 627,013 1,521,775 4,360 182,681 104,538 365,700 657,279 454,442 202,837 $1,724,612 $262,004 58,936 59,996 380,936 1,343,676 $1,724,612 Statement 48 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 ' CITY OF COLUMBIA HEIGHTS MINNESOTA 'LIQUOR FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1996 ' With Comparative Totals For The Year Ended December 31, 1995 Statement 49 Top Heights Totals Top Valu Valu II Liquor 1996 1995 Operating revenues: Charges for sales: Liquor $944,107 $430,926 $346,647 $1,721,680 $1,678,742 Beer 1,523,311 803,878 751,063 3,078,252 2,820,926 Wine 348,112 166,424 63,826 578,362 521,223 Other 366,733 147,299 119,581 633,613 669,134 Total operating revenues 3,182,263 1,548,527 1,281,117 6,011,907 5,690,025 Operating expenses: Cost of goods sold 2,567,827 1,233,454 973,627 4,774,908 4,564,629 Operating expense 475,502 215,483 144,367 835,352 785,752 ' Depreciation 14,463 18,705 12,474 45,642 45,065 Total operating expenses 3,057,792 1,467,642 1,130,468 5,655,902 5,395,446 ' Net income from operations $124,471 $80,885 $150,649 356,005 294,579 Nonoperating revenues (expenses) Interest income 40,415 41,412 Miscellaneous revenues 5,603 4,958 Miscellaneous expenses - (17,784) Total nonoperating revenues (expenses) 46,018 28,586 Net income before operating transfers 402,023 323,165 ' Operating transfers: Operating transfers (out) (285,321) (337,603) Total operating transfers (285,321) (337,603) Net income (loss) 116,702 (14,438) Retained earnings - January 1 1,226,974 1,241,412 Retained earnings - December 31 $1,343,676 $1,226,974 139 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1996 With Comparative Amounts For the Year Ended December 31, 1995 Cash flows from operating activities: Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues Miscellaneous expenses Net cash flows from operating activities Cash flows from noncapital financing activities: Operating transfers (out) Net cash flows from noncapital financing activities Cash flows from capital and related financing activities: Acquisition of fixed assets Disposition of fixed assets Net cash flows from capital and related financing activities Cash flows from investing activities: Interest received on investments Net cash flows from investing activities Net increase ( decrease) in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income to Net cash flows from operating activities Operating income Adjustments to reconcile operating income to net cash flows from operating activities: Miscellaneous revenues Miscellaneous expenses Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in due from other governmental units (Increase) decrease in 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 Total adjustments Net cash flows from operating activities 140 Statement 50 ' 1996 1995 $6,011,949 (5,178,029) (478,057) 5,603 361,466 (285,321) (285,321) (3,858) (3,858) 39,528 39,528 111,815 604,873 $716,688 $356,005 5,603 45,642 (100) 142 (268) (20,752) (28,140) 6,731 (3,397) 5,461 $361,466 $5,692,246 (4,891,989) (464,630) 4,958 (17,784) 322,801 (337,603) (337,603) (22,697) 77,785 55,088 40,821 40,821 81,107 523,766 $604,873 $294,579 4,958 (17,784) 45,065 2,221 (222) 135 1,587 (20,138) 7,816 4,584 28,222 $322,801 INTERNAL SERVICE FUNDS Internal Service Funds are used to account for the financing on a cost reimbursement basis of goods or services provided by one department or agency to other departments or agencies within the City. Central Garage Fund - used to account for the costs of operating a maintenance facility for automotive equipment used by other City departments. Such costs are billed to other departments at actual cost plus a fixed overhead factor. The automotive equipment itself is acquired by the various user departments which are responsible for financing replacement vehicles as necessary. Energy Management Fund - used to account for the costs associated with energy management and maintenance within the City. All costs are recorded in the fund and allocated to user departments. Data Processing Fund - used to account for management information system costs throughout the City. Insurance Fund - used to account for 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. Compensated Absences Fund - used to account for funds that have been set aside by the City Council for compensated absences. 141 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1996 With Comparative Totals For December 31, 1995 I Central Energy Assets Garage Management , Current assets: , Cash and cash equivalents $168,924 $ - Receivables: Accounts 44 - Interest 1,716 - ' Due from other governmental units - - Prepayments 324 10,244 Inventory, at cost 85,454 - Total current assets 256,462 10,244 Fixed assets: Buildings 352,145 :395,871 , Improvements other than buildings 121,550 314,910 Machinery and equipment 103,253 - Total fixed assets 576,948 710,781 Less: accumulated depreciation 268,223 406,140 Net fixed assets 308,725 304,641 Total assets $565,187 $314,885 Liabilities and Fund Equity Current liabilities: Accounts payable $4,210 $19,866 Accrued salaries and withholdings payable 22,701 - Capital lease payable current - 104,124 Accrued interest payable - 2,387 Total current liabilities 26,911 126,377 Long -term liabilities: Capital lease payable net of current - 281,732' Total liabilities 26,911 408,109 Fund equity: Contributed capital: Municipal funds 124,196 - Property owners 64,653 - ' Total contributed capital 188,849 0 Retained earnings: Reserved for insurance - - ' Reserved for capital improvements 34,020 - Unreserved 315,407 (93,224)' Total retained earnings 349,427 (93,224) Total fund equity 538,276 (93,224) Total liabilities and fund equity $565,187 $314,885 142 Statement 51 Data Compensated Totals Processing Insurance Absences 1996 1995 $56,070 $1,069,400 $462,877 $1,757,271 $1,676,407 - 184 - 228 184 - 9,433 3,580 14,729 14,661 - - - - 30 2,796 14,603 27,967 56,267 = 85,454 86,431 58,866 1,093,620 466,457 1,885,649 1,833,980 - - - 748,016 712,524 - - - 436,460 436,460 68,231 - - 171,484 156,373 ' 68,231 0 0 1,355,960 1,305,357 31,061 - - 705,424 581,095 37,170 0 0 650,536 724,262 ' $96,036 $1,093,620 $466,457 $2,536,185 $2,558,242 $ - $7,894 $ - $31,970 $60,091 2,665 - 462,877 488,243 21,843 ' 104,124 99,548 - - - 2,387 3,002 ' 2,665 7,894 462,877 626,724 184,484 - - - 281,732 385,856 ' 2,665 7,894 462,877 908,456 570,340 ' - - - 124,196 124,196 - - - 64,653 64,653 0 0 0 188,849 188,849 ' - 1,085,726 - 1,085,726 1,068,870 - - - 34,020 52,267 93,371 - 3,580 319,134 677,916 93,371 1,085,726 3,580 1,438,880 1,799,053 93,371 1,085,726 3,580 1,627,729 1,987,902 ' $96,036 $1,093,620 $466,457 $2,536,185 $2,558,242 ' 143 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 Operating revenues: Charges for services: Services to departments Use of space Insurance allocation Recovery of damages Charges for sales: Sales of gasoline Total operating revenues Operating expenses: Cost of services and space Claims administration Supplies and services Claims Insurance deductible Depreciation Total operating expenses Net income (loss) from operations Nonoperating revenues (expenses): Interest income Miscellaneous revenues Interest expense Total nonoperating revenues (expenses) Net income (loss) before operating transfers Operating transfers: Operating transfers in Operating transfers (out) Total operating transfers Net income (loss) Retained earnings - January 1 Retained earnings - December 31 144 Central Energy Garage Management $111,065 $202,657 140,425 - 60,146 - 311,636 202,657 255,698 207,166 31,367 101,520 287,065 308,686 24,571 (106,029) 11,009 - 4,959 - - (20,327) 15,968 (20,327) 40,539 (126,356) 28,608 94,898 (46,608) - (18,000) 94,898 22,539 (31,458) 326,888 (61,766) $349,427 ($93,224) Statement 52 Data Compensated Totals Processing Insurance Absences 1996 1995 $ - $ - $48,982 $362,704 $308,743 - - 140,425 140,425 = 375,844 375,844 106,213 - 41,707 - 41,707 4,715 _ _ - 60,146 48,038 0 417,551 48,982 980,826 608,134 57,806 370,659 465,849 1,357,178 493,252 - 85,489 - 85,489 37,720 ' -- - 6,839 4,237 4,237 = 4,237 8,266 - 828 - 828 730 19,404 - - 152,291 139,693 77,210 461,213 465,849 1,600,023 686,500 (77,210) (43,662) (416,867) (619,197) (78,366) 60,518 22,967 94,494 112,199 ' = 4,959 5,556 - - - (20, 327) (24,728) 0 60,518 22,967 79,126 93,027 ' (77,210) 16,856 (393,900) (540,071) 14,661 ' 103,000 - - 226,506 149,729 - _ _ (46,608) (15,700) ' 103,000 0 0 179,898 134,029 25,790 16,856 (393,900) (360,173) 148,690 ' 67,581 1,068,870 397,480 1,799,053 1,650,363 $93,371 $1,085,726 $3,580 $1,438,880 $1,799,053 ' 145 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 1996 With Comparative Totals For the Year Ended December 31, 1995 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 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 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 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 Total adjustments Net cash flows from operating activities 146 Central Garage $311,592 (129,571) (121,219) 4,959 65,761 28,608 (46,608) (18,000) (60,185) 77 (60,108) 10,827 (1,520) 170,444 $168,924 $24,571 4,959 31,367 (44) 52 977 1,109 2,770 41,190 $65,761 Energy Management $202,657 (306,364) (103,707) 94,898 94,898 (20,327) (20,327) 268 (28,868) 28,868 $0 ($106,029) 101,520 (362) 1,327 (99,548) (615) 2,322 ($103,707) Statement 53 Data Compensated Totals Processing Insurance Absences 1996 1995 ' $ - $417,581 $48,982 $980,812 $608,652 (13,635) (459,960) - (909,530) (483,514) (46,618) (2,972) (170,809) (145,518) ' _ 4,959 5,556 (60,253) (42,379) 46,010 (94,568) (14,824) ' 103,000 - - 226,506 149,729 - - - (46,608) (15,700) ' 103,000 0 0 179,898 134,029 (18,457) - - (78,642) (38,400) ' = _ = 77 (20,327) (24,728) ' (18,457) 0 0 (98,892) (63,128) 47 60,338 22,946 94,426 107,577 ' 24,337 17,959 68,956 80,864 163,654 31,733 1,051,441 393,921 1,676,407 1,512,753 $56,070 $1,069,400 $462,877 $1,757,271 $1,676,407 ' ($77,210) ($43,662) ($416,867) ($619,197) ($78,366) ' - - - 4,959 5,556 19,404 - - 152,291 139,693 - - - (44) 548 - 30 - 30 (30) (2,796) 31,406 - 28,300 (21,417) t- - - 977 (4,307) (404) (30,153) - (28,121) 34,760 753 - 462,877 466,400 4,501 ' - - (99,548) (95,173) = (615) (589) 16,957 1,283 462,877 524,629 63,542 ' ($60,253) ($42,379) $46,010 ($94,568) ($14,824) 147 CITY OF COLUMBIA HEIGHTS, MINNESOTA CENTRAL GARAGE FUND BALANCE SHEET December 31, 1996 With Comparative Totals For December 31, 1995 Assets Current assets: Cash and cash equivalents Receivables: Accounts Interest Prepayments Inventory, at cost Total current assets Fixed assets: Buildings Improvements other than buildings Machinery and equipment Total fixed assets Less: accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Accrued salaries and withholdings payable 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 148 Capital Equipment Operating Replacement Account Account Statement 54 ' Totals 1996 1995 t 1 $135,272 $33,652 $168,924 $170,444 ' 44 - 44 - 188,849 1,348 368 1,716 1,534 324 - 324 376 ' 85,454 - 85,454 86,431 315,407 222,442 34,020 256,462 258,785 504,256 34,020 538,276 515,737 ' ' 352,145 - 352 ,145 316 653 , 121,550 103,253 - - 121,550 103,253 121,550 106,599 576,948 0 576,948 544,802 268,223 - 268,223 264,818 308,725 0 308,725 279,984 $531,167 $34,020 $565,187 $538,769 $4,210 $ - $4,210 $3,101 ' 22,701 - 22,701 19,931 26,911 0 26,911 23,032 124,196 - 124,196 124,196 64,653 - 64,653 64,653 ' 188,849 0 188,849 188,849 34,020 34,020 52,267 ' 315,407 - 315,407 274,621 315,407 34,020 349,427 326,888 504,256 34,020 538,276 515,737 ' $531,167 $34,020 $565,187 $538,769 I I CITY OF COLUMBIA HEIGHTS, M - 4NESOTA CENTRAL GARAGE FUND Statement 55 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 ' Capital Equipment Operating Replacement Totals Account Account 1996 1995 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 (loss) Retained earnings - January 1 Retained earnings - December 31 $111,065 $ - $111,065 $106,086 140,425 - 140,425 140,425 60,146 - 60,146 48,038 311,636 0 311,636 294,549 255,698 - 255,698 243,698 31,367 - 31,367 28,008 287,065 0 287,065 271,706 24,571 - 24,571 22,843 8,648 2,361 11,009 11,741 4,959 - 4,959 3,756 13,607 2,361 15,968 15,497 38,178 2,361 40,539 38,340 24,608 4,000 28,608 4,000 (22,000) (24,608) (46,608) (15,700) 2,608 (20,608) (18,000) (11,700) 40,786 (18,247) 22,539 26,640 274,621 52,267 326,888 300,248 $315,407 $34,020 $349,427 $326,888 149 t CITY OF COLUMBIA HEIGHTS, MINNESOTA CENTRAL GARAGE FUND Statement 56 , STATEMENT OF CASH FLOWS For The Year Ended December 31, 1996 With Comparative Amounts For the Year Ended December 31, 1995 ' 1996 1995 , Cash flows from operating activities: Cash received from customers $311,592 $295,281 Cash paid to suppliers for goods and services (129,571) (132,985) Cash payments to employees for services (121,219) (112,738) Miscellaneous revenues 4,959 3,756 Net cash flows from operating activities 65,761 53,314 Cash flows from noncapital financing activities: Operating transfers in 28,608 4,000 ' Operating transfers (out) (46,608) (15,700) Net cash flows from noncapital financing activities (18,000) (11,700) ' Cash flows from capital and related financing activities: Acquisition of fixed assets (60,185) (6,980) Disposition of fixed assets 77 Net cash flows from capital and related financing activities (60,108) (6,980) Cash flows from investing activities: Interest earned on investments 10,827 11,140 , Net increase (decrease) in cash and cash equivalents (1,520) 45,774 , Cash and cash equivalents - January 1 170,444 124,670 Cash and cash equivalents - December 31 $168,924 $170,444 ' Reconciliation of operating income to Net cash flows from operating activities Operating income $24,571 $22,843 ents to reconcile operating Adjustments p g income to net cash flows from operating activities: Miscellaneous revenues 4,959 3,756 , Depreciation expense 31,367 28,008 Changes in assets and liabilities: (Increase) decrease in accounts receivable (44) 732 (Increase) decrease in prepayments 52 (376) (Increase) decrease in inventory, at cost 977 (4,307) Increase (decrease) in accounts payable 1,109 69 Increase (decrease) in accrued salaries and withholdings payable 2,770 2,589 Total adjustments 41,190 30,471 Net cash flows from operating activities $65,761 $53,314 ' 150 CITY OF COLUMBIA HEIGHTS, MINNESOTA MANAGEMENT FUND Statement 57 'ENERGY BALANCE SHEET December 31, 1996 ' With Comparative Amounts For December 31, 1995 ' 1996 1995 Assets Current Current assets: Cash and cash equivalents $ - $28,868 Interest receivable - 268 ' Prepayments 10,244 9,882 Total current assets 10,244 39,018 Fixed assets: Buildings 395,871 395,871 Improvements other than buildings 314,910 314,910 1 Total fixed assets 710,781 710,781 Less: accumulated depreciation 406,140 304,620 Net fixed assets 304,641 406,161 ' Total assets $314,885 $445,179 and Fund Equity 'Liabilities Current liabilities: Accounts payable $19,866 $18,539 Capital lease payable current - 99,548 ' Accrued interest payable 2,387 3,002 Total current liabilities 22,253 121,089 Long -term liabilities: Capital lease payable net of current 385,856 385,856 Total liabilities 408,109 506,945 Retained earnings: Unreserved (93,224) (61,766) Total liabilities and fund equity $314,885 $445,179 151 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENERGY MANAGEMENT FUND Statement 58 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1996 With Comparative Amounts For The Year Ended December 31, 1995 Operating revenues: Charges for services: Services to departments Total operating revenues Operating expenses: Cost of services and space Depreciation Total operating expenses Net income (loss) from operations Nonoperating revenues (expenses): Interest Interest expense Total nonoperating revenues (expenses) Net income (loss) before operating transfers Operating transfers: Operating transfers in Net income (loss) Retained earnings - January 1 Retained earnings - December 31 152 1996 1995 $202,657 $202,657 202,657 202,657 207,166 199,837 101,520 101,560 308,686 301,397 (106,029) (98,740)_ 2,055 (20,327) (24,728) (20,327) (22,673) (126,356) (121,413) 94,898 67,929 (31,458) (53,484) (61,766) (8,282) ($93,224) ($61,766) CITY OF COLUMBIA HEIGHTS, MINNESOTA MANAGEMENT FUND Statement 59 'ENERGY STATEMENT OF CASH FLOWS For The Year Ended December 31, 1996 ' With Comparative Amounts For the Year Ended December 31, 1995 1996 1995 Cash flows from operating activities: Cash received from customers $202,657 $202,657 Cash paid to suppliers for goods and services (306,364) (304,011) Net cash flows from operating activities (103,707) (101,354) Cash flows from noncapital financing activities: Operating transfers in 94,898 67,929 Cash flows from capital and related financing activities: Interest expense (20,327) (24,729 Net cash flows from capital and related financing activities (20,327) (24,728) ' Cash flows from investing activities: Interest earned on investments 268 2,385 Net increase ( decrease) in cash and cash equivalents (28,868) (55,768) Cash and cash equivalents - January 1 28,868 84,636 Cash and cash equivalents - December 31 $0 $28,868 Reconciliation of operating income (loss) to Net cash flows from operating activities ' Operating income (loss) ($106,029) ($98,740) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: ' Depreciation expense 101,520 101,560 Changes in assets and liabilities: (Increase) decrease in prepayments (362) (9,882) ' Increase (decrease) in accounts payable 1,327 1,470 Increase (decrease) in capital lease payable (99,548) (95,173) Increase (decrease) in accrued interest payable (615) (589) Total adjustments 2,322 (2,614) Net cash flows from operating activities ($103,707) ($101,354) 153 CITY OF COLUMBIA HEIGHTS, MINNESOTA DATA PROCESSING FUND Statement 60 BALANCE SHEET December 31, 1996 With Comparative Amounts For December 31, 1995 Assets Current assets: Cash and cash equivalents Interest receivable Prepayments 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 154 1996 1995 $56,070 $31,733 - 47 2,796 - 58,866 31,780 68,231 49,774 68,231 49,774 31,061 11,657 37,170 38,117 $96,036 $69,897 $ - $404 2,665 1,912 2,665 2,316 93,371 67,581 $96,036 $69,897 CITY OF COLUMBIA HEIGHTS, MINNESOTA DATA PROCESSING FUND Statement 61 STATEMENT OF REVENUES, EXPENSES AND 1 CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1996 With Comparative Amounts For The Year Ended December 31, 1995 1996 1995 Operating revenues $ - $ - Operating expenses: Cost of services 57,806 49,717 Depreciation 19,404 10,125 Total operating expenses 77,210 59,842 Net income (loss) from operations (77,210) (59,842) Nonoperating revenues (expenses): Interest - 358 Operating transfers: Operating transfers in 103,000 77,800 Net income 25,790 18,316 Retained earnings - January 1 67,581 49,265 iRetained earnings - December 31 $93,371 $67,581 155 CITY OF COLUMBIA HEIGHTS, MINNESOTA DATA PROCESSING FUND Statement 62 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1996 With Comparative Amounts For The Year Ended December 31, 1995 1996 Cash flows from operating activities: Cash paid to suppliers for goods and services ($13,635) Cash payments to employees for services (46,618) Net cash flows from operating activities (60,253) Cash flows from noncapital financing activities: Operating transfers in 103,000 Cash flows from capital and related financing activities: Acquisition of fixed assets (18,457) Cash flows from investing activities: Interest earned on investments 47 Net increase in cash and cash equivalents 24,337 Cash and cash equivalents - January 1 31,733 Cash and cash equivalents - December 31 $56,070 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) ($77,210) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 19,404 Changes in assets and liabilities: (32,780) (Increase) decrease in prepayments (2,796) Increase (decrease) in accounts payable (404) Increase (decrease) in accrued salaries and withholdings payable 753 Total adjustments 16,957 Net cash flows from operating activities ($60,253) 156 , 1995 ($19,851) (32,780) (52,631) ' 77,800 (31,420) , 311 (5,940) 37,673 ' $31,733 r ($59,842) 10,125 (4,826) 1,912 7,211 ' ($52,631) i 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA INSURANCE FUND Statement 63 BALANCE SHEET December 31, 1996 With Comparative Amounts For December 31, 1995 1996 1995 Assets Current assets: Cash and cash equivalents $1,069,400 $1,051,441 Receivables: Accounts 184 184 Interest 9,433 9,253 Due from other governmental units - 30 Prepayments 14,603 46,009 Total assets $1,093,620 $1,106,917 Liabilities and Fund Equity Current liabilities: Accounts payable $7,894 $38,047 Fund equity: Retained earnings: Reserved for insurance 1,085,726 1,068,870 Total liabilities and fund equity $1;093,620 $1,106,917 157 CITY OF COLUMMIA HEIGHTS, MINNESOTA INSURANCE FUND Statement 64 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1996 With Comparative Amounts For The Year Ended December 31, 1995 Operating revenues: Insurance allocation Recovery of damages Total operating revenues Operating expenses: Insurance premiums Claims administration Supplies and services Claims Insurance deductible Total operating expenses Net income (loss) from operations Nonoperating revenues: Interest income Miscellaneous revenues Total nonoperating revenues Net income Retained earnings - January 1 Retained earnings - December 31 158 1996 1995 $375,844 $106,213 41,707 4,715 417,551 110,928 370,659 - 85,489 37,720 - 6,839 4,237 8,266 828 730 461,213 53,555 $1,068,870 (43,662) 57,373 60,518 70,810 - 1,800 60,518 72,610 16,856 129,983 1,068,870 938,887 $1,085,726 $1,068,870 CITY OF COLUMBIA HEIGHTS, MINNESOTA 'INSURANCE FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1996 With Comparative Amounts For the Year Ended December 31, 1995 1 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 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 (loss) Adjustments to reconcile operating income to net 1 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 1996 $417,581 (459,960) (42,379) 60,338 17,959 1,051,441 $1,069,400 ($43,662) 30 31,406 (30,153) 1,283 ($42,379) Statement 65 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 $85,847 159 CITY OF COLUMBIA HEIGHTS, MINNESOTA I COMPENSATED ABSENCES FUND Statement 66 BALANCE SHEET , December 31, 1996 With Comparative Amounts For December 31, 1995 Assets Current assets: Cash and cash equivalents Interest receivable Total assets Liabilities and Fund Equity Current liabilities: Accrued salaries and withholdings payable Total liabilities Retained earnings: Unreserved Total liabilities and fund equity 160 1996 $462,877 3,580 $466,457 462,877 462,877 3,580 $466,457 1995 ' $393,921 3,559 $397,480 i 0 , 397,480 $397,480 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPENSATED ABSENCES FUND Statement 67 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1996 With Comparative Amounts For The Year Ended December 31, 1995 1996 1995 Operating revenues: Charges for services $48,982 $ - ' Operating expenses: Cost of services 465,849 - Net income (loss) from operations (416,867) 0 Nonoperating revenues (expenses): Interest 22,967 27,235 Net income (loss) (393,900) 27,235 Retained earnings - January 1 397,480 370,245 Retained earnings - December 31 $3,580 $397,480 161 CITY OF COLUMBIA HEIGHTS, MINNESOTA I COMPENSATED ABSENCES FUND Statement 68 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1996 With Comparative Amounts For The Year Ended December 31, 1995 Cash flows from operating activities: Cash received from customers Cash payments to employees for services Net cash flows from operating activities 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: Changes in assets and liabilities: (Increase) decrease in accrued salaries and withholdings payable Total adjustments Net cash flows from operating activities 162 1996 $48,982 (2,972) 46,010 22,946 68,956 393,921 $462,877 ($416,867) 462,877 462,877 $46,010 1995 $ - 0 ' 25,522 25,522 368,399 $393,921 $ - 0 , $0 ' 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 - 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. 163 CITY OF COLUMBIA HEIGHTS, MINNESOTA FIDUCIARY FUNDS COMBINING BALANCE SHEET December 31, 1996 Statement 69 1 Cash and investments Receivables: Accounts Interest Assets held by deferred compensation trustee Total assets Liabilities and Fund Balance Liabilities: Accounts payable Deferred compensation payable to employees Deposits Other liabilities Total liabilities Fund balance: Unreserved: Designated for subsequent years' expenditures Undesignated Total fund balance Total liabilities and fund balance 164 Expendable Trust Flex Police/Fire Agency Benefit Contingency Funds Total $15,555 $539,358 $5,012 $559,925 - - 216 216 142 3,051 - 3,193 - - 3,217,308 3,217,308 $15,697 $542,409 $3,222,536 $3,780,642 $1,563 $85,976 $ - $87,539 - - 3,217,308 3,217,308 3,619 3,619 - - 1,609 1,609 1,563 85,976 3,222,536 3,310,075 - 456,433 - 456,433 14,134 - - 14,134 14,134 456,433 0 470,567 $15,697 $542,409 $3,222,536 $3,780,642 CITY OF COLUMBIA HEIGHTS, MINNESOTA EXPENDABLE TRUST FUNDS Statement 70 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1996 Revenues: Intergovernmental State Flex withholding Interest Total revenues Expenditures: Personal services Other services and charges Total expenditures Revenues over expenditures Other financing sources: Operating transfers in Net increase in fund balance Fund balance - January 1 Fund balance - December 31 Flex Benefit 44,441 913 45,354 41,729 41,729 3,625 3,625 10,509 $14,134 Police/Fire Contingency $168,212 19,572 187,784 92,866 92,866 94,918 90,000 184,918 271,515 $456,433 Total $168,212 44,441 20,485 233,138 92,866 41,729 134,595 98,543 90,000 188,543 282,024 $470,567 165 CITY OF COLUMBIA BEIGHTS, MWNESOTA FIDUCIARY FUNDS Statement 71 COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - ALL AGENCY FUNDS For The Year Ended December 31, 1996 Total All Agency Funds Assets Cash and investments: General account Payroll account Total cash and investments Accounts receivable 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 Accounts receivable Total assets Liabilities Deposits Other liabilities: Payroll deductions payable Employee activity Total liabilities 166 Balance Balance 1/1/96 Additions Deletions 12/31/96 $5,619 $ - $3,691 $3,607 $2,012 2,931 69 3,000 - 3,000 8,550 69 $8,539 3,607 5,012 - 216 $ - - 216 2,659,907 557,401 225 - 3,217,308 $2,668,457 $557,686 1,514 $3,607 $3,222,536 $4,557 $5,133 $202 $ - $202 $ - 2,659,907 557,401 - 3,217,308 7,951 - 4,332 3,619 397 1,212 - 1,609 $2,668,457 $558,613 $4,534 $3,222,536 $2,659,907 $557,401 $ - $3,217,308 $2,659,907 $557,401 $ - $3,217,308 $11 $84 $ - $95 $11 $84 $ - $95 $5,608 $ - $3,691 $1,917 2,931 69 - 3,000 - 216 - 216 $8,539 $285 $3,691 $5,133 $7,951 $ - $4,332 $3,619 225 - 225 - 363 1,151 - 1,514 $8,539 $1,151 $4,557 $5,133 GENERAL FIXED ASSETS ACCOUNT GROUP The City maintains a separate account group which contains the fixed assets used in the governmental fund type operations. They are assets of the City as a whole and not of individual funds. 167 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE For The Year Ended December 31, 1996 Statement 72 1 Investment in General Fixed Assets by Source General Obligation Bonds: Balance Balance 1/1/96 Additions Deletions 12/31/96 General Fixed Assets Municipal Building Bonds of 1959 150,000 - Land $3,319,619 $80,652 $ - $3,400,271 Buildings 8,097,916 56,376 - 8,154,292 Improvements other than buildings 1,503,253 14,354 - 1,517,607 Machinery and equipment 5,228,435 646,169 75,878 5,798,726 Construction in process 412,983 29,257 412,983 29,257 2,004,475 Total city general fixed assets $18,562,206 $826,808 $488,861 $18,900,153 Investment in General Fixed Assets by Source General Obligation Bonds: Library Bonds of 1966 $90,000 $ - $ - $90,000 Municipal Building Bonds of 1959 150,000 - - 150,000 Park Bonds of 1962 325,000 - - 325,000 City Garage Bonds of 1972 510,000 - - 510,000 Capital Improvement Bonds of 1976 929,475 - - 929,475 Total general obligation bonds 2,004,475 0 0 2,004,475 Grants: r Federal E.D.A. and H.U.D. 526,290 - - 526,290 State 267,203 - - 267,203 Total grants 793,493 0 0 793,493 Revenue sharing: Federal 1,752,317 - - 1,752,317 Anoka County 51,550 - - 51,550 Total revenue sharing 1,803,867 0 0 1,803,867 Balance from current revenue and contributions 13,960,371 826,808 488,861 14,298,318 Total investments in general fixed assets $18,562,206 $826,808 $488,861 $18,900,153 t 168 1 I CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY For The Year Ended December 31, 1996 Statement 73 1 169 Balance Balance 1/1/96 Additions Deletions 12/31/96 General government: Council $22,780 $ - $ - $22,780 Manager 24,894 1,067 - 25,961 Finance and elections 272,705 4,369 4,652 272,422 Assessing 14,997 14,997 Planning 679 17,840 - 18,519 General government buildings 1,252,509 8,793 - 1,261,302 Total general government 1,588,564 32,069 4,652 1,615,981 Public safety: Police /animal /civil defense 530,737 85,347 27,824 588,260 Fire 543,981 258,377 - 802,358 Inspections 37,018 - 1,299 35,719 Total public safety 1,111,736 343,724 29,123 1,426,337 Public works: Engineering 226,903 16,910 5,395 238,418 Maintenance 1,800,237 125,952 23,141 1,903,048 Total public works 2,027,140 142,862 28,536 2,141,466 Other departments: Sanitation 652 - - 652 Parks and recreation 7,498,398 229,251 12,467 7,715,182 Library 367,027 8,921 - 375,948 Cable television 34,702 23,774 1,100 57,376 EDA 5,521,004 16,950 - 5,537,954 Construction in process 412,983 29,257 412,983 29,257 Total other departments 13,834,766 308,153 426,550 13,716,369 Total general fixed assets $18,562,206 $826,808 $488,861 $18,900,153 1 169 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 1996 General government: Statement 74 Improvements Machinery Other Than and Construction Land Buildings Buildings Equipment In Process Total Council $ - $ - $ - $22,780 $ - $22,780 Manager - - - 25,961 - 25,961 Finance and elections - - - 272,422 - 272,422 Assessing - - - 14,997 - 14,997 Planning - 17,840 - 679 - 18,519 General government buildings 182,184 995,126 22,296 61,696 - 1,261,302 Total general government 182,184 1,012,966 22,296 398,535 0 1,615,981 Public safety: $3,400,271 $8,154,292 $1,517,607 Police/animal /civil defense - - 1,710 586,550 - 588,260 Fire - 25,704 2,199 774,455 - 802,358 Inspections - - - 35,719 - 35,719 Total public safety 0 25,704 3,909 1,396,724 0 1,426,337 Public works: Engineering Maintenance Total public works Other departments: Sanitation Parks and recreation Library Cable television EDA Construction in process Total other departments Totals 170 - 5,110 2,801 230,507 - 19,763 577,026 1,306,259 0 24,873 579,827 1,536,766 - 238,418 - 1,903,048 0 2,141,466 - - - 652 - 652 3,080,821 1,939,723 910,441 1,784,197 - 7,715,182 21,000 204,655 1,134 149,159 - 375,948 - 5,565 - 51,811 - 57,376 116,266 4,940,806 - 480,882 - 5,537,954 - - - - 29,257 29,257 3,218,087 7,090,749 911,575 2,466,701 29,257 13,716,369 $3,400,271 $8,154,292 $1,517,607 $5,798,726 $29,257 $18,900,153 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. 171 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF GENERAL LONG -TERM DEBT December 31, 1996 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 Total available and to be provided for General Long -Term Debt Payable General Obligation Bonds payable Accreted interest on Capital Appreciation Bonds Total general long -term debt payable r 172 Statement 75 $843,287 7,863,381 $8,706,668 $7,469,721 1,236,947 $8,706,668 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY Statement 76 December 31, 1996 173 General Obligation Bonds Year Principal Interest 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 $7,469,721 $5,135,594 173 CITY OF COLUMBIAHEIGHTS, MRiNESOTA 174 1 7 J fl r�l SUPPLEMENTARY FINANCIAL INFORMATION 175 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINING SCHEDULE OF BONDS PAYABLE December 31, 1996 Tax Increment Bonds G.O. Tax Increment Capital Appreciation Bonds of 1990 G.O. Tax Increment Refundine 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 176 Interest Issue Maturity Rate Date Date 8/23/90 9/1/09 9/01 6.90% 6.95% 7.00% 7.00% 7.10% 7.10% 7.15% 7.15% 3/01-9/01 5.10% 5.30% 5.50% 5.60% 5.70% 5.80% 5.15% 11/21/91 3/1/02 7/1/93 2/1/97 Exhibit 1 177 Interest Original Balance Balance Paid in Issue 1/1/96 Sold Retired 12/31/96 Current Year $2,399,721 $2,399,721 $ - $ - $2,399,721 $ - 6,670,000 5,835,000 - 965,000 4,870,000 289,455 r 735,000 390,000 - 190,000 200,000 14,813 1 $9,804,721 $8,624,721 $0 $1,155,000 $7,469,721 $304,268 177 CH 178 CITY OF COLUMBIAHEIGHTS, MINNESOTA III. STATISTICAL SECTION 179 CITY OF COLUMBIA HEIGHTS, MINNESOTA ASSESSED VALUE, TAX CAPACITY, AND Table 1 ESTIMATED ACTUAL VALUE OF ALL TAXABLE PROPERTY (A) 1,679,868 Years 1987 Through 1996 (5,180,460) (Unaudited) .130,685,327 511,612,400 EM Ratio of 1989 Total 522,002,900 Assessed/ 4,017,800 Tax 2,478,750 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 1987 $114 767 361 0484 669 200 $1547 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% 1996 9,185,608 564,682,300 224,356 4,912,100 (449,141) 2,873,097 11,833,920 569,594,400 2.08% (A) For tax collection years 1988 and prior, taxable valuation was calculated based on a specific formula applied to estimated actual value, which resulted in an assessed valuation, which was then used as a base upon which to spread the annual tax levies. Beginning in 1989, the State of Minnesota legislated a change in this formula. This change is intended to reflect the burden or "tax capacity" that property is able to bear. The new formula results in a considerably smaller taxable valuation for the City. In this table, for the purpose of comparison only, 1988 and prior years are reported under the old system of assessed valuation, while 1989 and subsequent years are reported in terms of tax capacity. (B) The Metropolitan Fiscal Disparities Act was fast 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. 180 CITY OF COLUMBIA HEIGHTS, MINNESOTA TAX RATES - PER $100 OF TAX CAPACITY Table 2 Years 1987 Through 1996 (Unaudited) ' Year (A) City School County Metro Other (B) Total 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 1996 0.29018 0.84748 0.28000 0.04605 0.01381 1.47752 ' (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. ' 181 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY TAX LEVY Table 3 Years 1987 Through 1996 ' (Unaudited) Fiscal City Levy General Police Fire Year Total Fund Relief Relief Library ' 1987 $2,181,115 $2,008,455 $89,700 $82,960 $ - 1988 2,391,689 2,258,872 65,242 67,575 - ' 1989 2,391,689 2,298,989 54,266 38,434 - ' 1990 2,882,056 2,760,455 64,549 57,052 - 1991 3,144,069 2,963,869 98,606 81,594 - t 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 ' 1995 3,587,209 3,196,861 - - 390,348 1996 2,754,161 2,340,393 - - 413,768 ' 182 , CITY OF COLUMBIA HEIGHTS, MINNESOTA TAX LEVIES AND TAX COLLECTIONS Years 1987 Through 1996 (Unaudited) Table 4 Collections Percentage Collections of Current of Levy of Prior Delinquent Years Taxes Collected Years Taxes Year Total During Fiscal During Fiscal During Fiscal Collected Tax Levy* Period Period Period 1987 $1,624,073 $1,605,851 98.9% $41,633 1988 1,800,335 1,762,573 97.9% 18,395 1989 1,811,862 1,785,190 98.5% 13,601 1990 2,079,001 2,057,446 99.0% 3,249 1991 2,226,208 2,183,800 98.1% 31,274 1992 2,406,707 2,360,410 98.1% 19,290 1993 2,453,972 2,400,802 97.8% 25,753 1994 2,583,699 2,531,198 98.0% 16,381 1995 2,608,699 2,571,649 98.6% 12,843 1996 2,754,161 2,726,715 99.0% 78,666 Table 4 * 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. 183 Ratio of Accumulated Delinquent Ratio Taxes to of Total Accumulated Current Total Collections Delinquent Year Collections to Tax Levy Taxes Tax Levy $1,647,484 1.0144:1 $55,101 0.03393:1 1,780,968 0.9892:1 53,374 0.02965:1 1,798,791 0.9928:1 79,005 0.04360:1 2,060,695 0.9912:1 81,891 0.03939:1 2,215,074 0.9950 :1 88,809 0.03989:1 2,379,700 0.9888:1 109,305 0.04542:1 2,426,555 0.9888 :1 123,285 0.05024:1 2,547,579 0.9860:1 79,071 0.03060:1 2,584,492 0.9907:1 40,418 0.01549:1 2,805,381 1.0186:1 33,408 0.01213:1 * 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. 183 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Years 1987 Through 1996 (Unaudited) Table 5 184 Deferred Special Assessments Current Current Collections Special Collected Balance Fiscal Assessments % of Delinquent Assessments During at End of Year Due Amount Levy Collections (A) Delinquent Fiscal Period Fiscal Period 1987 $201,700 $121,911 60.4% $86,741 $108,729 $236,510 $616,994 1988 * 197,641 110,447 55.9% 50,534 149,795 143,565 1,149,826 1989 * 218,860 142,076 64.9% 95,361 97,030 219,588 637,341 1990 * 250,682 180,388 72.0% 74,581 109,928 309,544 591,415 1991 * 252,190 134,588 53.4% 39,016 77,005 210,029 565,432 1992 * 224,922 171,708 76.3% 55,385 73,962 54,141 416,229 1993 * 104,941 71,722 68.3% 59,468 59,185 139,047 364,055 1994 * 125,888 85,292 67.8% 39,267 60,229 102,127 304,970 1995 159,282 86,587 54.4% 53,447 79,057 25,130 186,323 1996 64,767 38,470 59.4% 58,495 34,147 70,506 158,269 * The parking ramp at 4025 Van Buren Street NE was assessed; however, it was not included in this figure. (A) The City bills the property owner directly when a special assessment installment becomes due. If the installment becomes delinquent, it is certified to the County for inclusion on the following year's property tax statement and is shown as a delinquent collection. 184 CITY OF COLUMBIA HEIGHTS, NM4NESOTA GOVERNMENTAL REVENUES BY SOURCE (A) Table 6 'GENERAL Years 1987 Through 1996 (Unaudited) Special Fiscal Assessments Licenses Inter- Charges for Fines and Miscellaneous Year Taxes (B)_ and Permits governmental Services Forfeitures Interest (C) Total 1987 $2,733,934 $ - $131,351 $2,972,407 $408, 062 $ 123 ,813 $533,564 $560,378 $7,463,509 ' 1988 2,924,601 - 163,384 3,738,312 516,018 112,254 596,581 1,179,042 9,230,192 1989 2,839,936 736,662 142,365 4,014,920 611,516 128,188 1,229,806 453,820 10,157,213 ' 1990 3,215,975 463,410 147,587 4,096,113 661,116 123,505 1,039,625 385,013 10,132,344 1991 3,474,483 277,171 164,945 3,249,669 424,546 116,386 395,986 238,615 8,341,801 1992 3,496,720 147,180 125,275 3,504,973 442,636 104,673 562,475 595,015 8,978,947 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 1996 3,840,481 - 223,758 4,139,604 879,601 125,543 361,401 167,606 9,737,994 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. From 1991 to 1995 ' the Housing and Redevelopment Authority is discretely presented as a separate column. Due to changes in the governing authority, the Housing and Redevelopment Authority is presented as a blended component unit in 1996. ' 185 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (A) Years 1987 Through 1996 (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. From 1991 to 1995, the Housing and Redevelopment Authority is discretely presented as a separate column. Due to changes in the governing authority, the Housing and Redevelopment Authority is presented as a blended component unit in 1996. 186 Highways Parks Fiscal General Public and and Debt Other Year Government Safety Streets Sanitation Recreation Library Service (B) Total 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 1996 1,354,292 2,597,866 965,677 124,580 1,055,083 409,047 1,475,888 1,608,033 9,590,466 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. From 1991 to 1995, the Housing and Redevelopment Authority is discretely presented as a separate column. Due to changes in the governing authority, the Housing and Redevelopment Authority is presented as a blended component unit in 1996. 186 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL CITY OFFICIALS Year Ended December 31, 1996 Name Mayor and Council ' Joseph Sturdevant Gary L. Peterson ' Meg Jones Donald G. Jolly Robert W. Ruettimann ' Administration Walter Fehst Linda Magee William Elrite June Johnston Phil Suckerman Jim Hoeft Mark Winson Thomas Johnson Charles Kewatt Lauren McClanahan Randy Quale M. Rebecca Loader Table S Official Title Mayor Councilmember Councilmember Councilmember Councilmember City Manager Assistant to City Manager City Clerk- Treasurer, Finance Director Assistant Finance Director Liquor Operations Manager City Attorney Public Works Director, City Engineer Chief of Police Chief of Fire Superintendent of Public Works Recreation Services Director Librarian 187 CITY OF COLUMBIA HEIGHTS, MINNESOTA MISCELLANEOUS STATISTICS December 31, 1996 (Unaudited) Table 9 Page 1 of 2 Date of Incorporation March 14, 1898 Date of Adoption of City Charter July 21, 1921 Form of Government Council- Manager Fiscal Year Begins January 1 Area of City 3.52 Square Miles Miles of Streets and Alleys: Trunk Highways 3.0 County 6.2 City Streets 61.8 Alleys 18.9 Miles of Sewers: 473 Storm Sewers 33.6 Sanitary Sewers 59.0 Watermain Miles 66.1 Building Permits Issued: 1986 513 1987 556 1988 535 1989 473 1990 486 1991 484 1992 515 1993 505 1994 565 1995 596 1996 602 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 1996 11,910,040 188 1 'CITY OF COLUMBIA HEIGHTS, MINNESOTA MISCELLANEOUS STATISTICS December 31, 1996 (Unaudited) Table 9 Page 2 of 2 Fire Protection: Number of Stations 1 ' Number of Employees: Full -time 8 Part -time 1 ' Volunteer 23 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, 1996): Regular 116 ' Part -time and Temporary 217 333 ' 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) 18,910 189 CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL TAXPAYERS December 31, 1996 (Unaudited) Taxpayer Type of Business Kraus - Anderson, Inc. Construction Americana Bank Office Building Columbia Park Properties Medical Building Maylan Construction Retail (K -mart) Medtronics, Inc Medical Manufacturing Consolidated Realty of Minneapolis Apartments Northern States Power Utility Minnegasco Utility Lynde Investment Apartments Crestview Lutheran Home Apartments Total Principal Taxpayers Source of Data: Anoka County Auditor's Office 190 Tax Capacity Value $214,600 154,800 154,482 166,686 138,000 118,432 116,748 104,080 82,765 88,061 $1,338,654 Table 10 % of Total City Tax Capacity Value 2.34% 1.98% 1.68% 1.81% 1.63% 1.27% 1.24% 1.11% 0.81% 0.94% 14.81% CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN December 31, 1996 (Unaudited) Table 11 ' 1996/1997 1995/1996 'Market Value $569,594,400 $550,851,300 Debt Limit Percentage (Note A) 2% 2% Debt limit 11,391,888 11,017,026 ' Amount of Debt applicable to debt limit: Total bonded debt 7,469,721 8,624,721 Less: Tax increment bonds 7,469,721 8,624,721 (Note B) Special assessment bonds - - ' Total amount of debt applicable to debt limit 0 0 Legal debt margin $11,391,888 $11,017,026 ' 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. I 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. 191 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING DEBT December 31, 1996 (Unaudited) Table 12 ' Direct debt: City of Columbia Heights Overlapping debt: Anoka County Metropolitan Council Totals 192 Net General Obligation Debt $7,469,721 53,653,096 110,525,000 $171,647,817 Percentage Applicable to City 100.0% 2.73% 0.15% Amount , Applicable to City of Columbia Heights ' Share of Debt $7,469,721 1 1,464,730 163,577 $9,098,028 ' 1 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA 'PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS Table 13 Years 1987 Through 1996 (Unaudited) ' (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. 193 Property Value (A) Construction Fiscal Number Bank Year Real Personal Total of Units Value Deposits (B) 1987 $114,767,361 $1,547,299 $116,314,660 556 $4,215,085 $ - 1988 116,314,660 1,679,868 117,994,528 535 8,916,756 - 1989 14,532,465 208,985 14,741,450 473 5,180,247 7,018,831 (C) 1990 10,022,891 212,505 10,235,396 486 5,198,200 10,311,528 1991 9,901,542 210,051 10,111,593 484 4,894,021 9,923,902 1992 9,503,314 207,255 9,710,569 515 2,373,433 10,155,837 1993 9,226,574 207,309 9,433,883 505 3,292,353 16,636,883 (D) 1994 9,021,129 207,658 9,228,787 565 4,522,438 24,438,648 1995 8,884,233 220,961 9,105,194 596 4,927,970 22,725,067 1996 9,185,608 224,356 9,409,964 602 11,910,040 24,451,568 * Amount expressed in thousands. (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, First Banks, Norwest Bank, and First Community Credit Union ' (C) Figures for First Community Credit Union are not included for 1989. (D) 1992 amounts were used for First Banks and Norwest because 1993 amounts were not available. 193 CITY OF COLUMBIA HEIGHTS, MINNESOTA RATIO OF NET GENERAL OBLIGATION BONDED DEBT Table 14 TO ASSESSED VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA Years 1987 Through 1996 (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 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 1996 18,910 11,833,920 7,469,721 843,287 6,626,434 56.00% 350 194 CITY OF COLUMBIA HEIGHTS, MINNESOTA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES Table 15 FOR GENERAL OBLIGATION BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES Years 1987 Through 1996 ' (Unaudited) Ratio of Total Debt Service to ' Total General General Fiscal Debt Governmental Governmental Year Principal Interest Service Expenditures Expenditures 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% 1996 1,155,000 304,268 1,459,268 9,590,466 15.2% 195 CH 196 CITY OF COLUMBIAHEIGHTS, MINNESOTA SINGLE AUDIT AND OTHER REQUIRED REPORTS 197 CH 198 CITY OF COLUMBIAHEIGHTS, MINNESOTA r ' l#MUTSES, REDNTH A CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS rIndependent Auditor's Report on Supplementary Information - Schedule of Federal Financial Assistance r To the Honorable Mayor and Members of the City Council Columbia Heights, Minnesota r We have audited the general purpose financial statements of the City of Columbia Heights, Minnesota, as of and for the year ended December 31, 1996, and have issued our report thereon dated April 17, 1997 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 r 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. r TAUTGES, REDPATH & CO., LTD. Certified Public Accountants April 17, 1997 1 199 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH 200 CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE For The Year Ended December 31, 1996 Federal Funding Source/ Federal 1996 Activity Pass Through Agency/ CFDA Revenue Program Title Number Recognized Expenditures U.S. Department of Justice: ' Direct: Police Firing Supplement 16.580 $45,036 $45,036 FAST COPS Grant 16.710 30,965 30,965 Federal Emergency Management Agency: Passed - through Anoka County: Emergency Management Assistance Grant 83.503 5,357 5,357 U.S. Department of Housing and Urban Development: Passed - through Anoka County: Community Development Block Grant - ' Entitlement Grant (CDBG) 14.218 * 361,263 361,263 Passed - through Metropolitan Council: Section 8 Housing Assistance Payments Program for Administrative Services 14.856 45,875 45,875 Direct: ' Comprehensive Improvement Assistance Program (CIAP) - Modernization Grant ** 14.852 11,366 11,366 Operating Subsidy 14.850 46,662 46,662 Section 8 Voucher Program 14.855 75,104 75,104 ' Section 8 Certificate Program 14.857 34,082 34,082 Total Federal Assistance $655,710 $655,710 * Major Program * * Comprehensive Improvement Assistance FY 1994 ' Program (CIAP) Summary: Amendment Modernization project MN105001: #11 Grants awarded $76,377 Grants advanced: Received in 1994 5,957 Received in 1995 59,054 ' Accounts receivable at 12/31/96 11,366 Balance $0 ' Grants awarded $76,377 Grants expended/revenue recognized: 1994 6,785 1995 58,226 ' 1996, 11,366 Balance $0 . 201 CH 202 CITY OF COLUMBIAHEIGHTS, MINNESOTA EDPATr & CO, L ie *-Arm-rGE7sn CER TIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report on Compliance With 1 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, 1996, and have issued our report thereon dated April 17, 1997. 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, 1996: Political Activity Federal Financial Reports Davis -Bacon Act Allowable Costs/Cost Principles Civil Rights Drug -free Work Place Cash Management Administrative Requirements Relocation Assistance and Real Property Acquisitions ' Our procedures were limited to the applicable procedures described in the Office of Management and Budget's Compliance Supplement for Single Audits of State and Local Governments. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City of Columbia Heights, Minnesota's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the City of ' Columbia Heights, Minnesota had not complied, in all material respects, with those requirements. 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 management, the federal cognizant audit agency and other federal agencies. However, this report is a matter of public record and its distribution is not limited. TAUTGES, REDPATH & CO., LTD. Certified Public Accountants April 17, 1997 ' 203 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH 204 CITY OF COLUMBIAHEIGHTS, MINNESOTA ipmumas' R CERTIF ED PUBLIC ACCDUNTANTS 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, 1996, and have issued our report thereon dated April 17, 1997. 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, 1996. 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, Mnnesota's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. The results of our audit procedures disclosed immaterial instances of noncompliance with the ' requirements referred to in the second paragraph, which are described in the accompanying Schedule of Findings and Questioned Costs. We considered these instances of noncompliance in forming our opinion on compliance, which is expressed in the following paragraph. In our opinion, the City of Columbia Heights, Minnesota complied, in all material respects, with the specific requirements referred to in the second paragraph applicable to each of its major federal programs for the year ended December 31, 1996. 205 4810 White Bear Parkway a White Bear Lake, Minnesota 55110 o 612/426 -7000 0 FAX /426 -5004 o Member of HLB International CH 206 CITY OF COLUMBIAHEIGHTS, MINNESOTA This report is intended for the information of the City of Columbia Heights, Minnesota's management, the federal cognizant audit agency and other federal agencies. However, this report is a matter of public record and its distribution is not limited. TAUTGES, REDPATH & CO., LTD. Certified Public Accountants April 17, 1997 207 CH 208 CITY OF COLUMBIAHEIGHTS, MINNESOTA I *-MUTGES, -MEDP 1TH & CO., LTD. CERTIFIED PUBLIC ACCOUIV ANTS Independent Auditor's Report on Compliance In Accordance with Government Auditing Standards I 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, 1996, and have issued our report thereon dated April 17, 1997. We conducted our audit in accordance with generally accepted auditing standards and rGovernment 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. 1 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. Certified Public Accountants April 17, 1997. 209 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 o 612/426 -7000 ° FAX /426 -5004 o Member of HLB International CH 210 CITY OF COLUMBIAHEIGHTS, MINNESOTA 1#-riruomm' _R CERTIFIED PUBLIC ACCOUNT,4NTS I 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, 1996, and have issued our report thereon dated April 17, 1997. 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. tThe 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 that 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, 1996, 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 thave 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. 211 1 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 0 612/426 -7000 o FAX /426 -5004 o Member of HLB International CH 212 CITY OF COLUMBIA HEIGHTS, MINNESOTA 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 relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. 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,lVlinnesota, in a separate report dated May 14, 1997. 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. tCertified Public Accountants April 17, 1997 213 CH 214 CITY OF COLUMBIAHEIGHTS, MINNESOTA TAV TGeS, ReDP J 11 Hi A CO., U10. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report on the Internal Control Structure Used in Administering 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, 1996, and have issued our report thereon dated April 17, 1997. 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 April 17, 1997. 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 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, 1996, we considered the City's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the City's general purpose financial statements of the City of Columbia Heights, Minnesota and on its compliance with requirements applicable to major programs and to report on the internal control structure in accordance with OMB Circular A -128. This report ' addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated April 17, 1997. 1 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 215 4810 White Bear Parkway o White Bear Lake, Minnesota 55110 - 612/426 -7000 o FAX /426 -5004 o Member of HLB International CITY OF COLUMBIA HEIGHTS, MINNESOTA t 1 t 216 1 of the structure to future periods is subject to the risk that procedures may become inadequate p J p Y � 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 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, 1996, the City of Columbia Heights, Minnesota expended 55% of its total federal financial assistance under major federal financial assistance programs. 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. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. ■ We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the City of Columbia Heights, Minnesota's, ability to administer federal financial assistance programs in accordance with applicable laws and regulations. 217 (D CITY OF COLUMBIAHEIGHT5, MINNESOTA 218 We noted certain matters involvin g Management, the Cash Relocation Assistance and Federal Financial Reports general requirements and one questioned cost which are described in the accompanying Schedule of Findings and Questioned Costs. 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. We believe none of the reportable conditions described above are a material weakness. We also noted other matters involving the internal control structure and its operation, that we have reported to the management of the City of Columbia Heights, Minnesota in a separate report dated May 14, 1997. 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. TALTTGES, REDPATH & CO., LTD. Certified Public Accountants April 17, 1997 219 CH 220 CITY OF COLUMBIAHEIGHM, MINNESOTA I CITY OF COLUMBIA HEIGHTS, MINNESOTA Schedule of Findings and Questioned Costs Year Ended December 31, 1996 Questioned Current Year Findings Costs DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: jCDBG Program, CFDA No. 14.218, passed through Anoka County 1) Condition and Criteria: The grantee submitted and received federal reimbursement from Anoka County for $3,000 of certain closing costs, however, the grantee received a $2,646 refund of these costs but did not report the refund to Anoka County. The grant requires that the grantee either reimburse the County or submit additional qualifying expenditures. $2,645.70 Effect: Upon notification of this situation, the grantee recorded a liability of $2,645.70 on its December 31, 1996 balance sheet for this overpayment. Cause: The staff member responsible for reimbursement requests did not properly review the financial records and note the refund of costs. Recommendation: This amount should be either refunded to the County and/or additional qualifying expenditures should be submitted. Grantee Response: The staff member responsible for reimbursement requests will make a thorough review of the financial records before requests are made. Staff will prepare a payment voucher to reimburse Anoka County in the amount of $2,645.70. 221 CITY OF COLUMBIAHEIGHTS, MINNESOTA 222 t 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA Schedule of Findings and Questioned Costs Year Ended December 31, 1996 Questioned Current Year Findings Costs Section 8 Certificate and Housing Voucher Program CFDA No. 14.855 and 14.857, direct from HUD 2) Condition: Required federal reports were not been submitted on a timely basis. The reports for 1996 were filed some time after March, 1997. 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: Employees were not familiar with the necessary form (5268 1) and completed the 1995 form at the end of January 1997. The 52681 for 1996 was submitted before the February 15th deadline, however, HUD had requested some line item changes and revisions which were resubmitted in March, 1997. The 52595 was not submitted on time due to scheduling conflicts in the Community Development Department and the need to revise previously submitted information relevant to completion of the 52595. Recommendation: The grantee should amend its internal procedures to ensure timely filing. Grantee Response: Department has developed an internal calendar to track when paperwork is due to HUD. Staff has also attended a week long training program in Atlanta, Georgia in April, 1997 in the area of HUD budgeting and reporting forms to insure a good understanding of report form requirements. $0 223 CH 224 CITY OF COLUMBIAHEIGHTS, NIINNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA Schedule of Findings and Questioned Costs Year Ended December 31, 1996 Questioned Current Year Findings Costs Section 8 Certificate and Housing Voucher Program CFDA No. 14.855 and 14.857, direct from HUD 3) Condition and Criteria: Cash advances for the Section 8 program were greatly in excess of what was needed. Less than one -half of the $285,000 received in 1996 was actually used on program expenditures. Federal Cash Management requirements require the grantee to have procedures to reduce the time between the receipt and use of federal funds. HUD officials have indicated that after the initial year of implementing Section 8, grantees should submit revised budgets if the submitted budgets are significantly over what is needed. $0 Effect: HUD officials have indicated that they can assess penalty and interest charges if amounts advanced are greater than 5% over what was actually spent. Cause: Staff was not aware that they needed to revise the budget periodically and was told in 1997 by HUD staff that it was not necessary to revise 1996 budgets at this point. Rather, HUD would adjust future payments to offset overpayments and requested a review of the status in August of 1997. Recommendation: The grantee should amend its internal procedures to ensure that revised budgets are submitted as needed. Grantee Response: Staff attended training in the areas of budget and HUD reporting and has developed an internal calendar to monitor the HUD budget every 3 months. A revised budget can then be submitted in 1997 to ensure we are 1) not penalized for being over paid, or 2) underpaid and need additional funding authorized up to the Annual Contributions Contract maximum amount. 225 (D CITY OF COLUMBIA HEIGHTS, MINNESOTA 226 CITY OF COLUMBIA HEIGHTS, MINNESOTA Schedule of Findings and Questioned Costs Year Ended December 31, 1996 Current Year Findings Section 8 Housing Assistance Payments Program for Administrative Services, CFDA No. 14.856, passed through Metropolitan Council. 4) Condition: Required quarterly reports were not filed on a timely basis. As of March 21, 1997, EDA staff indicated that they were two quarters behind in filing these reports. Criteria: Section 3.03(a) of the contract with Metropolitan Council requires the submission of certain quarterly reports. Effect: The Metropolitan Council has been known to stop making monthly payments because of late filing. Cause: Staff did not comply with submission of reports on a timely basis, despite said deadlines being known to the appropriate staff. Recommendation: All delinquent reports should be filed. The grantee should amend its internal procedures to ensure timely filing. Grantee Response: The reports that need to be submitted to the Metro BRA for the two reporting periods in 1996 will be completed and submitted to the Metro HRA not later than May 30, 1997. Questioned Costs $0 227 CH 228 CITY OF COLUMBIA B EIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA Schedule of Findings and Questioned Costs Year Ended December 31, 1996 Questioned Current Year Findings Costs CDBG Program, CFDA No. 14.218, Passed Through Anoka County 5) Condition and Criteria: The EDA purchased three properties in 1996 with federal funds. These properties were acquired by voluntary arms - length transactions. For one of the properties, the EDA did not notify the owner in writing that it will not use its power of eminent domain to acquire the property as required by Section 5 -1 of the September, 1990 HUD handbook on Tenant Assistance, Relocation and Real Property Acquisition. Effect: Unknown. Cause: Staff turnover resulted in assumption of the parcel acquisition responsibilities by staff who were unfamiliar with the requirements in Section 5 -1. Recommendation: The grantee should amend its internal procedures to ensure all such real property acquisition requirements are followed. Grantee Response: Two adjacent properties reached agreement and were acquired in accordance with required procedures with a closing for the properties conducted in the winter of 1996. These two adjacent properties were very comparable in terms of size, features, and overall condition. In January of 1996, the City Manager and Zoning/Grant Coordinator reached agreement with the property owner for the sale of the referenced property to the City. The amount paid for this property was $3,000 higher than that paid for either of the adjacent properties. A further condition to the sale was that the security deposits and interest received by the property owner from the tenants would be retained by the property owner. Clearly, the property owner and City mutually reached agreement based upon an amount exceeding the fair market value as determined by the comparable sales of the two adjacent properties. Staff has placed a memorandum in the file documenting these facts. Additionally, staff will be advised of these requirements which must be observed in future property acquisitions. Moreover, a checklist will be developed to ensure compliance. $0 229 ClTY OF COLUMIA HEIGHTS, MINNESOTA 230 r 1 A I 1 CITY OF COLUMBIA HEIGHTS MINNESOTA Schedule of Findings and Questioned Costs Year Ended December 31, 1996 Prior Year Findings I The grantee resolved 1995 findings 2, 5 and 6 by implementing the grantee responses in the 1995 report. Finding 1 which addressed two over - reimbursements and one nonqualifying expenditure was partially resolved. The grantee did reimburse the identified items, however in 1996, one similar item was noted which is included in item 1 in the current year findings. Findings 3 and 4 which addressed the failure to file required federal reports have been partially resolved. The reports identified in 1995 were later submitted in 1996, however for 1996 these reports were not filed on a timely basis. These items are listed as items 2 and 4 on the current year findings. 231 CH 232 CITY OF COLUMBIA HEIGHTS, MINNESOTA