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HomeMy WebLinkAbout1997 CAFRI� i i i COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF COLUMBIA HEIGHTS STATE OF MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 1997 Prepared By: Finance Department CITY OF COLUMBIA HEIGHTS, MINNESOTA ' TABLE OF CONTENTS ' Reference Page Number I. INTRODUCTORY SECTION ' Principal City Officials 3 Organizational Chart 5 Letter of Transmittal 7 ' Certificate of Achievement for Excellence in Financial Reporting 17 ' II. FINANCIAL SECTION Independent Auditor's Report 21 ' General Purpose Financial Statements Combined Balance Sheet - All Fund Types and Account Groups Statement 1 24 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All Governmental Fund Types and Expendable Trust Funds 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 Cash Flows Proprietary Fund Types Statement 5 33 of - Notes to Financial Statements 35 ' Combining, Individual Fund and Account Group Financial Statements General Fund: ' Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Statement 6 Statement 7 67 68 Schedule of Revenues - Budget and Actual Statement 8 70 Schedule of Expenditures - Budget and Actual Statement 9 71 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Housing and Redevelopment Authority (Component Unit): Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 29 101 Economic Development Authority (Component Unit): Combining Balance Sheet Reference Page Number Special Revenue Funds: Combining Balance Sheet Statement 10 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 11 80 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Statement 32 106 Municipal State Aid Street Fund Statement 12 84 Cable Television Fund Statement 13 85 D.A.R.E. Program Statement 14 86 Library Fund Statement 15 87 Project Pride Statement 16 88 Federal Police Grant Statement 17 89 FAST COPS Grant Statement 18 90 Community Development Statement 19 91 COPS MORE 96 Statement 20 92 Statement of Revenues, Expenditures and Changes in Fund Balance: Local Law Enforcement Block Grant Statement 21 93 Recreation Contributed Projects Statement 22 94 Contributed Projects Statement 23 95 Parking Ramp Statement 24 96 Confiscated Property Statement 25 97 Housing Mortgage Statement 26 98 C.H.A.S.E Statement 27 99 COPS Grant Overtime Statement 28 100 Housing and Redevelopment Authority (Component Unit): Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 29 101 Economic Development Authority (Component Unit): Combining Balance Sheet Statement 30 102 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 31 104 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Anoka County CDBG Statement 32 106 Parkview Villa North Statement 33 107 EDA Administration Statement 34 108 Section 8 Housing Statement 35 109 Parkview Villa South Statement 36 110 Rental Housing Statement 37 111 Debt Service Funds: Combining Balance Sheet Statement 38 114 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 39 115 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Reference Page Number Capital Project Funds: ' Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 40 Statement 41 118 120 Enterprise Funds: Combining Balance Sheet Statement 42 124 Combining Statement of Revenues, Expenses and Changes in Retained Earnings Statement 43 125 Combining Statement of Cash Flows Statement 44 126 Water Utility Fund: Balance Sheet Statement 45 127 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 46 128 Statement of Cash Flows Statement 47 129 ' Sewer Utility Fund: Balance Sheet Statement 48 130 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 49 131 Statement of Cash Flows Statement 50 132 Refuse Utility Fund: Balance Sheet Statement 51 133 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 52 134 Statement of Cash Flows Statement 53 135 Liquor Fund: ' Balance Sheet Statement 54 136 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 55 137 ' Statement of Cash Flows Statement 56 138 Internal Service Funds: Combining Balance Sheet Statement 57 140 1 Combining Statement of Revenues, Expenses and Changes in Retained Earnings Statement 58 141 Combining Statement of Cash Flows Statement 59 142 Central Garage Fund: Balance Sheet Statement 60 143 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 61 144 1 Statement of Cash Flows Statement 62 145 Energy Management Fund: Balance Sheet Statement 63 146 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 64 147 Statement of Cash Flows Statement 65 148 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Reference Page Number Data Processing Fund: Balance Sheet Statement 66 149 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 67 150 Statement of Cash Flows Statement 68 151 Insurance Fund: Balance Sheet Statement 69 152 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 70 153 Statement of Cash Flows Statement 71 154 Compensated Absences Fund: Balance Sheet Statement 72 155 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 73 156 Statement of Cash Flows Statement 74 157 Trust and Agency Funds: Fiduciary Funds: Combining Balance Sheet Statement 75 160 Expendable Trust Funds: Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 76 161 Fiduciary Funds: Combining Statement of Changes in Assets and Liabilities -- All Agency Funds Statement 77 162 General Fixed Assets Account Group: Comparative Schedule of General Fixed Assets - By Source Statement 78 164 Schedule of Changes in General Fixed Assets - By Function and Activity Statement 79 165 Schedule of General Fixed Assets - By Function and Activity Statement 80 166 General Long -Term Debt Account Group: Schedule of General Long -Term Debt Statement 81 168 Schedule of Debt Service Requirements to Maturity Statement 82 169 Supplementary Financial Information Combining Schedule of Bonds Payable Exhibit 1 172 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS 1 Reference Page Number III. STATISTICAL SECTION Assessed Value, Tax Capacity, and Estimated Actual Value of all Taxable Property Table 1 176 tTax Rates Table 2 177 City Tax Levy Table 3 178 Tax Levies and Tax Collections Table 4 179 Special Assessment Levies and Collections Table 5 180 General Governmental Revenues By Source Table 6 181 ' General Governmental Expenditures By Function Table 7 182 1 Principal City Officials Table 8 183 Miscellaneous Statistics Table 9 184 Principal Taxpayers Table 10 186 Computation of Legal Debt Margin Table 11 187 ' Computation of Direct and Overlapping Debt Table 12 188 tProperty Value, Construction and Bank Deposits Table 13 189 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General ' Obligation Bonded Debt Per Capita Table 14 190 Ratio of Annual Debt Service Expenditures For General Obligation Bonded Debt to Total ' General Governmental Expenditures Table 15 191 ' IV. SINGLE AUDIT AND OTHER REQUIRED REPORTS SECTION Independent Auditor's Report on Compliance with Minnesota Legal Compliance Audit Guide for Local Governments 195 Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 199 Report on Compliance with Requirements Applicable to each Major Program and Internal 'Control over Compliance in Accordance with OMB Circular A -133 203 Schedule of Findings and Questioned Costs 207 Schedule of Expenditures of Federal Awards 221 I. INTRODUCTORY SECTION C� CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL CITY OFFICIALS December 31, 1997 CITY COUNCIL Joseph Sturdevant, Mayor Gary L. Peterson Councilmember Meg Jones Councilmember Donald G. Jolly Councilmember Robert W. Ruettimann Councilmember IMarlaine Szurek Councilmember -Elect tCITY MANAGER Walter Fehst FINANCE DEPARTMENT William J. Elrite, Finance Director June V. Johnston, Assistant Finance Director 1 Gary Braaten, Accounting Coordinator 3 CH CITY OF COLUMBIA HEIGHTS, MINNESOTA [1 ['I �J n 1 I Mayor: Joseph Sturdevant CITY OF COLUMBIA HEIGHTS ORGANIZATIONAL CHART Councilmembers: Donald G. Jolly Meg Jones Gary L. Peterson Robert W. Ruettimann City Manager: Walter Fehst POLICE (Administered by Mayor) Police Chief.- Thomas Johnson 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: Charles Kewati Secretary 11 (PT) Assistant Fire Chief Firefighters (6) Volunteer Firefighters (23) LIBRARY Library Director: M. Rebecca Loader Clerk- Typist 11 (2) Library Supervisor (6 PT) Page (8 PT) Choreperson (PT) Adult Service Specialist Children's Librarian PUBLIC WORKS Public Works Director /City Engineer: Kevin Hansen ' Secretary II -A Clerical/Purchasing Clerk Assistant City Engineer Engineering Technician IV ' Engineering Technician III Engineering Technician 11 Public Works Superintendent Foreman (3) Maintenance III (1) Maintenance tI (9) Maintenance I (6) Foreman - Vehicle Maintenance Maintenance III- Mechanic Maintenance III - Bodyman /Painter Admin. Assistant- Public Works ADMINISTRATION City Manager's Secretary Council Secretary's Asst. To City Manager Special Projects Coordinator Assessing Accounting Clerk 11 Clerk- Typist 11 (PT) RECREATION Recreation Director Clerk - Typist II Senior Citizen Coordinator Recreation Program Coordinator (2) Head Custodian Custodian II (5 PT) Custodian I (1 PT) FINANCE Finance Director /City Clerk/Treasurer: William Elrite Secretary II (PT) Assistant Finance Director Accounting Coordinator Payroll /Accounting Clerk Utilities Accounting Clerk II Utilities Accounting Clerk I Liquor Accounting Clerk Il (2 PT) Switchboard Operator /Receptionist Meter Reader (2 PT) Liquor Operations Manager Asst. Operations Manager (2) Liquor Store Supervisor (4) Retail Clerks (26 PT) MIS Coordinators (2) Commissions & Boards: Charter EDA Police & Fire Civil Service Insurance Traffic Telecommunications Planning & Zoning Human Services Park & Recreation Merit Library Science, Technology & Energy COMMUNITY DEVELOPMENT Community Development Director: Kenneth Anderson Secretary ti Secretary Building Official Planner Housing Coordinator FSS Coordinator Occupancy Specialist "Also serves in the capacity of Deputy City Clerk under the City Manager 5 CH CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS (I� 590 40TH AVENUE N.E., COLUMBIA HEIGHTS, MN 55421-3878 (612) 782 -2800 TDD 782 -2806 April 16, 1998 1 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, 1997 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 governing boards are substantively the same and the City is in a relationship of financial benefit or burden with the authorities. I THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES 7 EQUAL OPPORTUNITY EMPLOYER CH CITY OF COLUMBIA HEIGHTS, MINNESOTA ECONOMIC CONDITION AND OUTLOOK The City of Columbia Heights, which is a suburb located north of the City of Minneapolis in Anoka County in east - central Minnesota, was originally incorporated as a village in 1898. In 1921, pursuant to the adoption of a home rule City Charter by the qualified voters of the City, a council- manager form of government, was instituted. The City covers an area of 3.52 square miles and has a population of 18,910. As an older, fully developed suburb of the City of Minneapolis, the management and the residents of the City of Columbia Heights are faced with the problems of an aging infrastructure and with increased crime statistics. The City Council and City Management are taking a proactive approach in dealing with these concerns. In May, 1997, the City Council established a Scatter Site Redevelopment District with the intention of purchasing identified substandard housing throughout the City as it is placed on the market. Street construction projects in zones #1 and #2 (SE Quadrant) were undertaken in 1997 as part of an ongoing street rehabilitation program. The program will continue with zone 3 in 1998. The Police Department continued to apply for and receive federal grants from the Department of Justice to assist in their community policing efforts. During 1997, Medtronic Corporation completed Phase I of a major expansion project resulting in additional job opportunities in the City. Overall, employment in the City has remained stable. The City is actively promoting the expansion and creation of new businesses in the City. In 1997, the City Council approved a transfer of $50,000 from the General Fund to the HRA Business Revolving Loan Fund to be used for low interest loans for Columbia Heights businesses. I For the Year MAJOR INITIATIVES The Public Works Department spent a busy construction year on street rehabilitation projects in zones #1 and 42. The projects involved a combination of sealcoating, recycle and overlays and reconstruction depending on the condition of the street. In the areas where a reconstruction was done, water and sewer system improvements were also accomplished. In July, 1997, heavy rains resulted in flooding problems in the City. As a result, the City received some disaster assistance from FEMA and has undertaken a storm sewer study in localized flooding areas. The Police Department increased their community policing efforts with the assistance of various grants. During 1997, over 800 residents took part in six community picnics. Attendees were encouraged to meet their neighbors and discuss issues in the neighborhood and the City. As a result of the efforts of the department, crime statistics were down in 1997. E For the Future In 1997, the City of Columbia Heights submitted a second application to the Minnesota Design Team to be selected for a community visit. The Minnesota Design Team is a group of volunteer professional planners, architects, landscape architects, economic development professionals and housing experts. Applications are taken annually for a Design Team visit. Upon review, the Design Team selects approximately four communities annually to visit. The City of Columbia Heights was awarded a visit from April 30, 1998 to May 2, 1998. During their visit, the Design Team assists the community in planning and designing a viable, appropriate future. They work not only with design issues, but also with the fundamental planning process that allows communities to take the initiative in continuing to plan a future that reflects the interests of the community. The Design Team promotes the involvement of civic groups, businesses, churches, schools and the City in the process. Department Focus Each year the City focuses attention on the efforts and accomplishments of a selected department. This year the MIS Department has been selected. Over the past few years, the City has been working toward upgrading its computer systems to achieve consistency throughout the City. 1997 was a busy year for the department as they undertook the implementation of Laser Fiche (optical imaging) in conjunction with the upgrading of workstations, software and the City network. The network infrastructure was also greatly enhanced with new cabling and higher quality, more reliable servers. Staff in the department has dedicated itself to becoming more service oriented with the creation of an information systems user guide and a focus on user training. Much progress was made in 1997 thanks to the efforts of Ed O'Donnell and Alex Edwards. 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 expenditures cannot legally exceed the appropriated amount, is at the fund level. 10 As demonstrated b the statements and schedules included in the financial section of this report, Y 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 1997 totaled $12,229,901, which is an increase of 17.10% from 1996. Property taxes received for the City produced 37% of general revenues compared to 36.8% 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 1996 Taxes $4,489,572 37% $649,091 Special assessments 536,143 4% 370,293 Licenses and permits 202,533 2% (21,225) Intergovernmental 4,302,631 35% 163,027 Charges for services 923,485 8% 34,665 Fines and forfeitures 127,074 1% 1,531 Interest 748,373 6% 146,610 ' Other revenue 900,090 7% 442,596 Total revenues $12,229,901 100% $1,786,588 Taxes increased due to the collection of delinquent tax increments in the Downtown Development District, an increase in the tax levy and the first year of levy for the Economic Development Authority. The increases in special assessments and other revenue was due to completion of a number of street construction projects in zones #1 and #2. 11 The expenditures for City general government functions for 1997 totaled $12,213,346, an increase of 11.9% from 1996. The total expenditures for major City functions and their changes from last year are shown below: The major increase in expenditures was in the area of capital outlay due to the street reconstruction projects undertaken in zones #1 and #2. General Fund Balance The fund balance of the General Fund increased by $221,244 or 5.8 %. The total fund balance of $4,060,594 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 $6,135,166 in 1997. This resulted in a total net operating income of $311,275. Water and refuse utilities experienced operating income increases during 1997. The sewer utility experienced an operating loss during the year. The Water Utility Fund experienced an operating income of $66,563 during the year. The Refuse Utility Fund experienced an operating income of $96,544 and the Sewer Utility Fund experienced an operating loss of $6,660 during 1997. During the year, the City Council designated funds from the sewer and water utilities for capital equipment replacement and construction. 12 Amount of Increase Percent (Decrease) Expenditure Function Amount of Total from 1996 General government $1,397,129 11% $42,837 Public safety 2,542,310 21% (55,556) Public works 1,075,682 9% 110,005 Sanitation 84,251 1 % (40,329) Parks and recreation 1,201,796 10% 146,713 Library 427,358 3% 18,311 Other & contingencies 1,411,669 12% 172,848 Capital outlay 2,596,019 21% 911,452 Debt service 1,477,132 12% 1,244 Total expenditures $12,213,346 100% $1,307,525 The major increase in expenditures was in the area of capital outlay due to the street reconstruction projects undertaken in zones #1 and #2. General Fund Balance The fund balance of the General Fund increased by $221,244 or 5.8 %. The total fund balance of $4,060,594 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 $6,135,166 in 1997. This resulted in a total net operating income of $311,275. Water and refuse utilities experienced operating income increases during 1997. The sewer utility experienced an operating loss during the year. The Water Utility Fund experienced an operating income of $66,563 during the year. The Refuse Utility Fund experienced an operating income of $96,544 and the Sewer Utility Fund experienced an operating loss of $6,660 during 1997. During the year, the City Council designated funds from the sewer and water utilities for capital equipment replacement and construction. 12 Internal Service Funds The City maintains 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 City and for which user fees are paid by the using department. In 1997, the Central Garage Fund had an operating income of $24,717. 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 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 6.83 %. IThe City's investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, deposits were either insured by federal depository insurance or collateralized. Debt Administration At December 31, 1997, the City has two debt issues outstanding. These issues included $6,314,721 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 -133. 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, 1996. 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 Acknowled ents 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, illiam J. Elri� Finance Director yJune4V. Johnston Assistant Finance Director 15 CH 16 CITY OF COLUMBIA HEIGHTS, MINNESOTA � Certificate of � Achievement � for Excellence in Financial 1 Reporting lPresented to City of Columbia Heights, Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 1996 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. �PNC,E OFFj�, � � Q� OFTXE F9� UXITEO STATES y W � AND i N 2' CANADA XPORATOIN CORPORATION President 6 CO SEAL BO`S A CXICA6� �/` Executive Director 17 CITY OF COLUMBIA HEIGHTS, MINNESOTA 1 t t 18 1 II. FINANCIAL SECTION 19 CH 20 CITY OF COLUMBIA HEIGHTS, MINNESOTA Tautges Redpath, Ltd. Certified Public Accountants and Consultants IINDEPENDENT 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, 1997 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 the standards applicable to financial audits contained in 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 financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall 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, 1997, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with generally ( accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 13, 1998 on our consideration of the City of Columbia Heights, Minnesota's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the City of Columbia Heights, Minnesota taken as a whole. The accompanying schedule of expenditures of federal awards as required by U.S. Office of Management and Budget Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations, along with 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 stated in all material respects in relation to the general purpose financial statements taken as a whole. March 13, 1998 HLB TAUTGES REDPATH, LTD. Certified Public Accountants 4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA Telephone: 612 426 7000 Fax: 612 426 5004 HLB Tautges Redpath, Ltd. is a member of 0 International. A world -wide organization of accounting firms and business advisers. 21 CH 22 CTTY OF COLUMBIA HEIGHTS, NDNNESOTA IGENERAL 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. r 23 Assets Cash and investments Receivables: Accounts Special assessments Taxes Interest Loans Due from other governmental units Due from other funds 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 Total assets CITY OF COLUMBIA HEIGHTS MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1997 With Comparative Totals For December 31, 1996 Special Debt Assets Cash and investments Receivables: Accounts Special assessments Taxes Interest Loans Due from other governmental units Due from other funds 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 Total assets $4,440,351 3 593 423 $1,829,380 $5,393,913 24 The accompanying notes are an integral part of these financial statements. 1 1 Governmental Fund Types Special Debt Capital General Revenue Service Project $3,963,872 $2,119,116 $1,523,434 $4,606,402 8,136 30,097 - - - - - 613,646 97,469 3,566 196,655 - 36,564 19,437 9,875 47,510 - 281,143 - 6,755 76,252 180,406 - - 241,280 866,091 99,416 - 16,778 9,454 - - - 84,113 - 119,600 $4,440,351 3 593 423 $1,829,380 $5,393,913 24 The accompanying notes are an integral part of these financial statements. 1 1 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 1997 1996 $3,870,195 $1 822 106 $695,461 $ - $ - $18,600,586 $18,428,509 825,198 330 - - - 863,761 821,371 - - - - - 613,646 213,198 - - - - - 297,690 204,286 37,108 18,240 5,258 173,992 144,602 = = 287,898 312,599 421,254 - 52,991 - - 730,903 911,729 897,916 - 2,104,703 2,283,862 795 63,330 _ _ = 90,357 47,929 - _ _ _ _ - 3,217,308 677,818 70,218 748,036 714,920 = _ = 203,713 254,713 4,225,983 510,509 - 19,202,898 - 23,939,390 23,562,568 - - - - 822,740 822,740 843,287 - - - - 6,988,844 6,988,844 7,863,381 $10,956,267 $2,484,733 $753,710 $19,202,898 $7,811,584 $56,466,259 $59,824,262 The accompanying notes are an integral part of these financial statements. 25 Liabilities, Equity and Other Credits Liabilities: Accounts payable Accrued salaries and withholdings payable Contracts payable - retained percentage 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 Governmental Fund Types CITY OF COLUMBIA HEIGHTS MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS Special December 31, 1997 Capital With Comparative Totals For December 31, 1996 General Revenue Service Project Liabilities, Equity and Other Credits Liabilities: Accounts payable Accrued salaries and withholdings payable Contracts payable - retained percentage 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 26 The accompanying notes are an integral part of these financial statements. I Governmental Fund Types Special Debt Capital General Revenue Service Project $43,307 $60,367 $36,654 $16,988 169,001 26,743 - 3,150 - 11,037 - 68,672 83,331 35,927 13,184 537 - 211,197 953,795 939,711 84,118 591,155 3,007 612,786 - 19,432 - 1,000 = 206 = _ 379,757 956,064 1,006,640 1,642,844 16,778 343,606 - 119,600 ' 3,448,829 712,116 922,994 188,504 594,987 1,581,637 (100,254) 3,442,965 4,060,594 2,637,359 822,740 3,751,069 $4,440,351 $3,593,423 $1,829,380 $5,393,913 i 1 26 The accompanying notes are an integral part of these financial statements. I Proprietary Fiduciary Fund Types Fund Type Account Groups Internal Trust and General General Long - Enterprise Service Agency Fixed Assets Term Debt ,I Statement 1 Page 2 of 2 Totals (Memorandum Only) 1997 1996 $189,770 $46,872 $63,354 $ - $ - $457,312 102,747 26,257 - - - 327,898 1,362 - - - - 81,071 281,732 281,732 133,545 - - - - - - - 266,524 _ 2,104,703 = _ = = 1,291,066 - - - - 6,314,721 6,314,721 1,743 - 1,743 = = _ 1,496,863 1,496,863 3,744 - 5,212 - - 29,388 206 - 471,224 - - - 471,224 - - 3,562 - - 3,562 431,168 827,828 72,128 0 7,811,584 13,128,013 $563,216 322,114 5,597 385,856 3,217,308 231,692 2,283,862 1,233,757 7,469,721 2,387 1,236,947 24,985 231- 462,877 1,609 17,442,159 1,246,130 188,849 - - - 1,434,979 1,500,208 - - - 19,202,898 - 19,202,898 18,900,153 3,125,158 1,085,410 - - 4,210,568 3,869,775 _ 6,153,811, 382,646 6,536,457 6,556,548 I- - - - - 479,984 761,640 664,091 - - 5,936,534 5,310,257 milt - - 17,491 - - 5,536,826 5,483,522 10,525,099 1,656,905 681,582 19,202,898 0 43,338,246 42,382,103 $10,956,267 $2,484,733 $753,710 $19,202,898 $7,811,584 $56,466,259 $59,824,262 IThe 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, 1997 With Comparative Totals For The Year Ended December 31, 1996 Revenues: Taxes Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeits Interest Otherrevenues Total revenues Expenditures: Current: General government Public safety Public works Sanitation Parks and recreation Library Other Contingencies Capital outlay Debt service Total expenditures Revenues over (under) expenditures Other financing sources (uses): 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 NK Governmental Fund Types 1,397,129 Special General Revenue $2,505,456 $590,904 202,533 - 3,415,694 886,937 343,821 579,664 127,074 - 234,650 145,011 15,976 111,886 6,845,204 2,314,402 1,397,129 - 2,542,310 - 1,075,682 - 84,251 - 1,111,214 90,582 - 427,358 - 1,410,749 920 - - 340,896 6,211,506 2,269,585 633,698 44,817 421,436 512,802 (833,890) (372,615) (412,454) 140,187 221,244 185,004 3,839,350 2,452,355 $4,060,594 $2,637,359 The accompanying notes are an integral part of these financial statements. Statement 2 Fiduciary Governmental Fund Types Fund Type Debt Capital Expendable Totals (Memorandum Only) Service Project Trust 1997 1996 $1,393,212 $ - $ - $4,489,572 $3,840,481 - 536,143 - 536,143 165,850 - - 202,533 223,758 - - 85,044 4,387,675 4,307,816 - - 33,557 957,042 924,042 - - - 127,074 125,543 63,373 305,339 33,742 782,115 631,467 - 772,228 - 900,090 457,494 1,456,585 1,613,710 152,343 12,382,244 10,676,451 - - - 1,397,129 1,354,292 - - - 2,542,310 2,597,866 - 1,075,682 965,677 _ _ 84,251 124,580 - - - 1,201,796 1,055,083 - 427,358 409,047 _ _ 86,328 1,497,077 1,371,156 - - - 920 2,260 - 2,255,123 2,596,019 1,684,567 1,477,132 = 1,477,132 1,475,888 1,477,132 2,255,123 86,328 12,299,674 11,040,416 L(20,547) (641,413) 66,015 82,570 (363,965) 1,504,510 517,622 145,000 3,101,370 2,972,858 (1,504,510) (75,000) - (2,786,015) (2,599,471) 0 442,622 145,000 315,355 373,387 (20,547) (198,791) 211,015 397,925 9,422 843,287 3,949,860 470,567 11,555,419 11,545,997 $822,740 $3,751,069 $681,582 $11,953,344 $11,555,419 29 The accompanying notes are an integral part of these financial statements. 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, 1997 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeits Interest Other revenues Total revenues Expenditures: Current: General government Public safety Public works Sanitation - Parks and recreation Library Other Contingencies Total current expenditures 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 Budget $2,517,101 156,200 3,339,757 324,425 90,000 130,000 32,988 6,590,471 1,480,063 2,668,358 1,112,522 146,758 1,223,777 20,100 6,651,578 6,651,578 (61,107) 421,436 (761,620) (340,184) ($401,291) General Actual $2,505,456 202,533 3,415,694 343,821 127,074 234,650 15,976 6,845,204 1,397,129 2,542,310 1,075,682 84,251 1,111,214 920 6,211,506 6,211,506 633,698 421,436 (833,890) (412,454) 221,244 3,839,350 $4,060,594 30 The accompanying notes are an integral part of these financial statements. Over (under) Budget ($11,645) 46,333 75,937 19,396 37,074 104,650 (17,012) 254,733 (82,934) (126,048) (36,840) (62,507) (112,563) (19,180) (440,072) (440,072) 694,805 (72,270) (72,270) $622,535 Statement 3 tTotals 512,802 53,027 881,211 (Memorandum Only) (372,615) (93,017) Special Revenue 180,177 140,187 1997 (160,007) ($124,070) 137,285 Over (525,361) Over ' (under) (under) Budget Actual Budget Budget Actual Budget ' $593,235 $590,904 ($2,331) $3,110,336 $3,096,360 ($13,976) - - - 156,200 202,533 46,333 1,390,192 790,225 (599,967) 4,729,949 4,205,919 (524,030) ' 573,948 577,907 3,959 898,373 921,728 23,355 90,000 127,074 37,074 44,276 127,577 83,301 174,276 362,227 187,951 58,525 56,333 (2,192) 91,513 72,309 (19,204) 2,660,176 2,142,946 (517,230) 9,250,647 8,988,150 (262,497) - - - 1,480,063 1,397,129 (82,934) 2,668,358 2,542,310 (126,048) _ _ = 1,112,522 1,075,682 (36,840) - - - 146,758 84,251 (62,507) - - - 1,223,777 1,111,214 (112,563) 436,572 427,358 (9,214) 436,572 427,358 (9,214) 1,892,310 1,384,371 (507,939) 1,892,310 1,384,371 (507,939) - - - 20,100 920 (19,180) ' 2,328,882 1,811,729 (517,153) 8,980,460 8,023,235 (957,225) 635,541 334,119 (301,422) 635,541 334,119 (301,422) .. 2,964,423 2,145,848 (818,575) 9,616,001 8,357,354 (1,258,647) (304,247) (2,902) 301,345 (365,354) 630,796 996,150 459,775 512,802 53,027 881,211 (279,598) (372,615) (93,017) (1,041,218) 180,177 140,187 (39,990) (160,007) ($124,070) 137,285 $261,355 (525,361) 1 320 305 $1,457,590 934,238 53,027 (1,206,505) (165,287) (272,267) (112,260) 358,529 $883,890 5,159,655 $5,518,184 31 The accompanying notes are an integral part of these financial statements. CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENSES AND Statement 4 CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPES For The Year Ended December 31, 1997 With Comparative Totals For The Year Ended December 31, 1996 Operating revenues: Charges for services Charges for sales Total operating revenues Operating expenses: Costs of sales, services, and goods sold Operating expense Depreciation Total operating expenses Net income (loss) from operations 1 IF1 Enterprise Internal Service Totals (Memorandum Only) Funds Funds 1997 1996 418,822 $2,508,762 $816,009 $3,324,771 $3,318,148 ' 7,306,110 54,611 7,360,721 7,227,104 73,466 9,814,872 870,620 10,685,492 10,545,252 Interest expense - (15,722) (15,722) (20,327) 7,557,976 786,946 8,344,922 8,752,820 (33,011) 1,575,836 216,646 1,792,482 1,563,497 ' 213,338 157,131 370,469 371,994 (184,824) 9,347,150 1,160,723 10,507,873 10,688,311 467,722 (290,103) 177,619 (143,059) 1 Nonoperating revenues (expenses): Interest income 301,774 117,048 418,822 365,834 Intergovernmental 62,423 - 62,423 60,172 Miscellaneous revenues 73,466 3,953 77,419 427,872 Interest expense - (15,722) (15,722) (20,327) Miscellaneous expenses (149,733) - (149,733) (33,011) Total nonoperating-revenues (expenses) 287,930 105,279 393,209 800,540 ' Net income (loss) before operating transfers 755,652 (184,824) 570,828 657,481 Operating transfers: Operating transfers in 345,372 246,511 591,883 483,191 Operating transfers (out) (874,727) (32,511) (907,238) (856,578) Total operating transfers (529,355) 214,000 (315,355) (373,387) Net income 226,297 29,176 255,473 284,094 Credit for depreciation on contributed assets 65,229 - 65,229 65,229 Net increase in retained earnings 291,526 29,176 320,702 349,323 ' Retained earnings - January 1 8,987,443 1,438,880 10,426,323 10,077,000 $1,468,056 $10,747,025 $10,426,323 Retained earnings - December 31 $9,278,969 32 The accompanying notes are an integral part of these financial statements. CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES For The Year Ended December 31, 1997 With Comparative Totals For The Year Ended December 31, 1996 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 Interest expense Net cash flows from capital and related financing activities Cash flows from investing activities: Interest earned on investments Net cash flows from investing activities Net increase in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income to net cash provided (used) by operating activities: Miscellaneous revenues Miscellaneous expenses Depreciation expense Changes in assets and liabilities: (Increase) decrease accounts receivable (Increase) decrease due from other governmental units (Increase) decrease due from other funds (Increase) decrease prepayments (Increase) decrease inventory, at cost Increase (decrease) accounts payable Increase (decrease) accrued salaries and withholdings payable Increase (decrease) due to other governmental units Increase (decrease) capital lease payable Increase (decrease) accrued interest payable Increase (decrease) deferred revenue Increase (decrease) deposits Total adjustments Internal Enterprise Service Funds Funds Statement 5 Totals (Memorandum Only) 1997 1996 $9,902,392 $870,518 $10,772,910 $10,608,812 (8,422,586) (911,768) (9,334,354) (8,963,845) (843,308) (192,579) (1,035,887) (979,098) 135,889 3,953 139,842 181,130 (149,733) - (149,733) (33,011) 622,654 (229,876) 392,778 813,988 43,005 - 43,005 345,372 246,511 591,883 483,191 (874,727) (32,511) (907,238) (856,578) (529,355) 214,000 (315,355) (373,387) (29,205) 5,416 9,238 (427,442) (17,104) (444,546) (553,669) - (15,722) (15,722) (20,327) (427,442) (32,826) (460,268) (573,996) (644) (615) 154,932 299,653 113,537 413,190 365,550 299,653 113,537' 413,190 365,550 (34,490) 64,835 30,345 232,155 3,904,685 1,757,271 5,661,956 5,429,801 $3,870,195 $1,822,106 $5,692,301 $5,661,956 $467,722 ($290,103) $177,619 ($143,059) 135,889 3,953 139,842 181,130 (149,733) - (149,733) (33,011) 213,338 157,131 370,469 371,994 (49,272) (102) (49,374) 42,444 93,787 - 93,787 (20,234) 43,005 - 43,005 41,350 (207) (35,363) (35,570) 94,234 (48,352) 15,236 (33,116) (19,994) (103,138) 14,902 (88,236) (29,205) 5,416 9,238 14,654 479,404 14,199 - 14,199 (50,902) - (104,124) (104,124) (99,548) - (644) (644) (615) 154,932 60,227 215,159 957,047 Net cash flows from operating activities $622,654 ($229,876) $392,778 $813,988 33 The accompanying notes are an integral part of these financial statements. CH 34 CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 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 governing boards are substantively the same as that of the City 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 HRA 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 HRA 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, 1997 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. 36 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 Proprietary Funds are accounted for using the 'capital maintenance" measurement focus and are reported on the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recorded at the time liabilities are incurred. Governmental Accounting Standards Board (GASB) Statement #20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that Use Proprietary Funds provides proprietary activities with a choice of authoritative guidance issued after November 30, 1989. The City of Columbia Heights has elected to follow GASB pronouncements exclusively after that date. D. BUDGETARY DATA The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing on January 1 of the following year. At least one special Council meeting is conducted to obtain public comments as required by the State Truth in Taxation Law. The City Council annually adopts budgets prior to January 1 for the General and certain Special Revenue Funds. The budgets are prepared by fund, function, and activity. The budgets are adopted on a basis consistent with generally accepted accounting principles and all appropriations lapse at the end of the budget year to the extent that they have not been expended. Total expenditures appropriated in the budget resolution may not legally exceed the estimated revenues available from various sources. Formal budgetary integration is employed as a management control device during the year. Budget revisions between functions or activities may be made by the City Manager. Budget revisions at the fund level are authorized by the City Council in accordance with the City Charter at the request of the City Manager. The legal level of budgetary control is therefore at the fund level. The City does not use encumbrance accounting. Amounts shown in the financial statements represent the original budgeted amounts and the following increases in appropriations: General Fund $ 174,718 Special Revenue Funds: Cable Television 23,231 Municipal State Aid 150,585 FAST COPS 34,000 EDA: Parkview Villa North 2,039 HRA 32,750 Totals $ 417,323 37 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 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: Local Law Enforcement Block Grant Recreation Contributed Projects Contributed Projects Parking ramp Confiscated property Housing mortgage C.H.A.S.E. COPS Overtime Grant Total Special Revenue Funds 2,370 21,106 Total - 2,076 14,450 48,997 Other - 44,601 Fund Balance 3,924 Financing Fund Balance December 31, Total Total Sources December 31, 1996 Revenues Expenditures (Uses) 1997 468,960 1,544 - - 470,504 $1,320,305 $2,142,946 $2,145,848 $140,187 $1,457,590 2,370 21,106 21,400 - 2,076 14,450 48,997 18,846 - 44,601 13,358 3,924 3,493 - 13,789 629,586 15,132 - - 644,718 2,928 2,632 3,235 - 2,325 468,960 1,544 - - 470,504 - 73,492 71,736 - 1,756 398 4,629 5,027 - - $2,452,355 $2,314,402 $2,269,585 $140,187 $2,637,359 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. CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 Fixed Assets: General Fixed Assets Account Group - All purchased fixed assets are valued at historical cost or estimated historical cost. The costs of property, plant, and equipment are accounted for as current expenditures of the Governmental Fund Types in the year purchased. The City has elected not to record infrastructure fixed assets in its account records. No depreciation has been provided on general fixed assets. Proprietary Fund Types - Fixed assets of the Proprietary Funds are stated at historical cost, estimated historical cost, or in the case of contributions, at fair market value at the time received. Depreciation has been provided using the straight -line method over the estimated useful lives of assets as follows: Buildings 40 -50 years Machinery and equipment 3 -20 years Improvements 5 -20 years Distribution system 50 -100 years Depreciation on contributed assets charged to operations is closed to the contributed equity account. LIABILITIES Long -term liabilities expected to be financed from Governmental Funds are accounted for in the General Long -Term Debt Account Group, not in the Governmental Funds. The liability for the vested portion of accumulated vacation and sick leave 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. Wt CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 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. EXPENDITURES Expenditure recognition for Governmental Fund Types includes only amounts represented by current liabilities. G. TOTAL COLUMNS ON COMBINED STATEMENTS Total columns on the combined statements are captioned "Totals (Memorandum Only)" to indicate that they are presented only to facilitate financial analysis. Data in these columns does not present cash flow or results of operations in conformity with generally accepted accounting principles nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of these data. 40 Ll 1 1 1I CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 H. COMPARATIVE DATA Comparative total data for the prior year has been presented in the accompanying financial statements to provide an understanding of changes in the City's financial position and operations. Comparative data for each fund type has not been presented in the combined statements since their inclusion could make the statements unduly complex and difficult to read. I. STATEMENT OF CASH FLOWS For purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with an original maturity of three months or less to be cash equivalents. All of the Proprietary Funds' equity in the City-wide cash and investment management pool is considered to be cash equivalents. Note 2 DEPOSITS AND INVESTMENTS The City maintains a cash and investment pool that is available for use by all funds of the City. 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, 1997, the carrying amount of the City's deposits was $1,299,511 and the bank balance was $1,772,834. The entire bank balance was insured or collateralized by securities held by the City's agent in the City's name. 1 41 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 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, 1997 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) $12,014,296 $ - $ - $12,014,296 $11,895,037 Shared investment pools 5,282,079 5,282,079 Total investments 17,296,375 $17,177,116 Deposits 1,299,511 Cash on hand 4,700 Total cash and investments $18,600,586 42 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 Note 3 LEGAL COMPLIANCEBUDGETS Total actual expenditures exceeded budgeted expenditures (appropriations) in the following funds for 1997: Special Revenue Funds: Federal Police Grant COPS MORE 96 Budgeted Actual Over Expenditures Expenditures Budget $112,290 $119,785 $7,495 - 1,691 1,691 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, 1997 Note 4 INTERGOVERNMENTAL RECEIVABLES Intergovernmental receivables at December 31, 1997 presented as due from other governmental units are composed of the following: General Fund: State of Minnesota - FEMA Grant Pass Thru $25,969 Anoka County 31,212 City of Hilltop 5,808 State of Minnesota 75 Independent School District # 13 13,188 Total General Fund 76,252 Special Revenue Funds: Federal Police Grant - Federal Department of Justice 32,949 FAST COPS - Federal Department of Justice 18,632 Municipal State Aid - State of Minnesota 16,539 C.H.A.S.E. - State of Minnesota 30,926 EDA (Component unit): Anoka County CDBG - Anoka County 22,162 Section 8 - Metropolitan Council 46,161 Section 8 - Minneapolis HRA 11,900 EDA Admin - Metropolitan Council 1,137 Total Special Revenue Funds 180,406 Enterprise Funds: Sewer - MCES 407,370 Refuse - Anoka County 11,633 Liquor - State of Minnesota 2,251 Total Enterprise Funds 421,254 Fiduciary Funds: Police/Fire Contingency - State of Minnesota 52,735 Escrow Agency Fund - PERA 256 Total Enterprise Funds 52,991 Total intergovernmental receivables $730,903 ME CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 INTERCEPTOR ACQUISITION CONTRACT RECEIVABLE As of January 1, 1971, the Metropolitan Waste Control Commission (MWCC) assumed ownership of all existing interceptors and treatment works. Under the terms of the agreement with MWCC, the City is to be reimbursed for the value at the time of transfer, of such facilities. The contract represents the value of the facilities acquired by the MWCC and was determined to be $400,533 at the date of takeover by the MWCC. This amount is being amortized through credits received against annual sewer billings from MWCC over a 30 -year period with interest at 4 %. The MWCC merged with the Metropolitan Council during 1994 to form the Metropolitan Council Environmental Services (MCES). As of December 31, 1997, a balance of $61,805 remained to be collected over the next three 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, 1997, a balance of $296,751 remained to be collected over the next thirteen 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, 1997 consist of the following: Sheffield Redevelopment $6,755 HRA: Business Revolving Loans 61,186 Mortgage Loans 51,216 EDA: Anoka County CDBG: Anoka County Community Action Program (ACCAP) Loans 168,741 Total $287,898 The HRA 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, 1997 Note 6 INTERFUND RECEIVABLES AND PAYABLES Individual fund interfund receivables and payables at December 31, 1997 consist of the following: Enterprise Funds: Sewer Utility 728,916 - Liquor 169,000 - Total $2,104,703 $2,104,703 ., Interfund Interfund Receivables Payables General Fund $241,280 $ - Special Revenue Funds: Municipal State Aid - 170,455 C.H.A.S.E. - 25,368 Parking Ramp 408,027 - Housing Mortgage 446,352 - Rental Housing - 11,712 HRA 11,712 3,662 Debt Service Funds: Tax Increment Bonds 99,416 854,379 MURP - 99,416 Capital Projects Funds: Medtronic Development - 41,709 TIF District #2 - 86 Sheffield Redevelopment - 897,916 Enterprise Funds: Sewer Utility 728,916 - Liquor 169,000 - Total $2,104,703 $2,104,703 ., CITY OF COLUMBIA HEIGHTS, NIINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 Note 7 INTERFUND TRANSFERS From To Amount Purpose Operating: General Pension Reserve $ 145,000 Police/Fire pension contribution General Capital Impoovement Parks 50,000 Park improvements General Energy Management 105,000 Energy improvements General Community Development 247,000 Building inspections General Federal Police Grant 85,740 Future officer funding General Capital Equipment Replacement 50,000 Replacement fixed assets General FAST COPS 17,237 Future officer funding General Infrastructure 50,000 Fund future improvements General Data Processing 19,500 Fund data processing services General COPS MORE 96 14,413 Federal grant match General HRA 50,000 BRLF program Municipal State Aid General 50,000 State aid street maintenance Municipal State Aid Capital Improvement 80,430 Close projects Cable Television General 44,072 Administrative labor Library Fund General 7,127 Administrative labor FAST COPS Federal Police Grant 34,000 Future officer funding Tax Increment Bonds Tax Increment Bonds 1991A 1,195,978 Debt service Tax Increment Bonds Tax Increment Bonds 1993A 206,230 Debt service MURP Tax Increment Bonds 102,302 Debt service Capital Improvement Building Infrastructure 75,000 Fund future improvements Garage Capital Equipment Replacement Central Garage 9,011 Equipment replacement Water Utility General 63,084 Administrative labor Water Utility Data Porcessing 19,500 Fund data processing services Water Utility Water Capital Equipment Replacement 15,000 Replacement fixed assets Water Utility Water Capital Construction 250,000 Fund future improvements Sewer Utility General 63,084 Administrative labor Sewer Utility Data Processing 19,500 Fund data processing services Sewer Utility Sewer Capital Equipment Replacement 25,000 Replacement fixed assets Sewer Utility Sewer Capital Construction 9,500 Fund future improvements Refuse Utility General 99,718 Administrative labor Refuse Utility Data Processing 19,500 Fund data processing services Liquor General 65,894 Administrative labor Liquor Capital Equipment Replacement 140,000 Replacement fixed assets Liquor DARE Project 8,075 Fund DARE program Liquor Data Processing 31,000 Fund data processing services Water Capital Construction Water Utility 6,855 Close projects Sewer Capital Construction Sewer Utility 39,017 Close projects Central Garage Garage Capital Equipment Replacement 4,000 Replacement fixed assets Central Garage Data Processing 19,500 Fund data processing services Community Development General 8,228 Administrative labor EDA - Parkview Villa North General 4,000 Administrative labor EDA - Administration General 14,229 Administrative labor EDA- Section 8 EDA - Administration 12,587 Metro program EDA - Parkview Villa South General 2,000 Administrative labor HRA Community Development 11,000 Fund activities HRA Sheffield Redevelopment 72,192 Guaranteed funding HRA EDA - Administration 32,750 Fund deficit Total operating transfers $3,693,253 47 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 Note 8 FIXED ASSETS The following is a summary of changes in the General Fixed Assets Account Group during the fiscal year: Water Balance Refuse Balance Internal January 1, Utility December 31, City 1997 Additions Retirements 1997 Land Land $3,400,271 $10 $ - $3,400,281 Buildings 8,154,292 51,378 - 8,205,670 Improvements other than buildings 1,517,607 23,516 - 1,541,123 Machinery and equipment 5,798,726 302,119 45,021 6,055,824 Construction in process 29,257 - 29,257 - 475,046 Total City general fixed assets $18,900,153 $377,023 $74,278 $19,202,898 The following is a summary of Proprietary Fund Type fixed assets at December 31, 1997: 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, 1997 amounted to $152,208. The City also has leased premises for its Top Valu II liquor store under a five -year lease expiring February 28, 1998, with a five -year renewal option in 1998 and 2003. The lease calls for fixed minimum payments of $3,051 per month. The City exercised the 1998 renewal option which will increase minimum payments to $3,552 per month beginning March 1, 1998. 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, 1997 amounted to $59,602. 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 258,643 55,612 6,000 181,631 501,886 747,378 1,249,264 Improvements other than buildings 2,878,447 3,403,121 2,890 103,409 6,387,867 436,460 6,824,327 Machinery and equipment 250,436 475,046 8,208 353,853 1,087,543 163,397 1,250,940 Construction in process 568,127 125,602 - - 693,729 - 693,729 Total 4,000,876 4,095,967 17,098 643,253 8,757,194 1,347,235 10,104,429 Less accumulated depreciation 1,827,157 2,215,846 8,467 479,741 4,531,211 836,726 5,367,937 Net fixed assets $2,173,719 $1,880,121 $8,631 $163,512 $4,225,983 $510,509 $4,736,492 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, 1997 amounted to $152,208. The City also has leased premises for its Top Valu II liquor store under a five -year lease expiring February 28, 1998, with a five -year renewal option in 1998 and 2003. The lease calls for fixed minimum payments of $3,051 per month. The City exercised the 1998 renewal option which will increase minimum payments to $3,552 per month beginning March 1, 1998. 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, 1997 amounted to $59,602. CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 Future minimum rental payments are as follows: Top Valu Top Valu II 1998 $88,785 $41,625 1999 88,785 42,628 2000 - 42,628 2001 - 42,628 2002 - 42,628 2003 - 7,104 Total $177,570 $219,241 Note 10 CAPITAL LEASE The City leases building improvement and other improvement retrofits under a lease - purchase option agreement dated November 1, 1992 with an interest rate of 4.54 %. During the term of this lease, legal title to the retrofit improvements remains with the lessor. Full and legal title to the retrofit improvements will pass to the City upon completion of all rental payments as detailed below or the exercise by the City of its option to purchase the retrofit improvements per the terms of the lease. Future rental payments are as follows: Principal Interest Total 1998 $108,910 $11,580 $120,490 1999 113,916 6,574 120,490 2000 58,906 1,339 60,245 Total $281,732 $19,493 $301,225 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 (507,660) Net $203,121 .• CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 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: Final Original Interest Issue Maturity Balance Issue Rate Date Date End of Year Tax Increment Bonds: General Obligation Tax Increment Capital Appreciation Bonds of 1990 Principal $2,399,721 6.90 -7.15% 8/23/90 9/1/09 $2,399,721 General Obligation Tax Increment Refunding Bonds of 1991 6,670,000 4.75 -5.80% 12/1/91 3/1/02 3,915,000 $6,314,721 Annual debt service requirements to maturity for general obligation bonds including interest of $4,889,466 are as follows: Fiscal Year Ending December 31 Total 1998 $1,180,390 1999 1,083,167 2000 986,980 2001 897,270 2002 1,111,380 Thereafter 5,943,000 Totals $11,202,187 At December 31, 1997, a total of $822,740 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, 1997 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 1997) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1997 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $174,228 $843,077 $668,849 $28,434,721 $22,320,000 $6,314,721 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 1997) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1997 C. 1984 University Avenue Redevelopment C8 Type of District Authorizing Law Duration of District Original Tax Capacity Current Tax Capacity (for taxes collectible in 1997) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1997 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $37,598 $59,029 $21,431 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $25,176 $110,925 $85,749 $1,070,000 $1,070,000 51 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 D. 1987 Sullivan Lake Development H2 Type of District Authorizing Law Duration of District Original Tax Capacity Current Tax Capacity (for taxes collectible in 1997) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1997 E. 1989 Multi -Use Redevelopment Plan K2 Type of District Authorizing Law Duration of District Original Tax Capacity Current Tax Capacity (for taxes collectible in 1997) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1997 F. 1995 Sheffield Tax Increment Financing District M8 Type of District Authorizing Law Duration of District Original Tax Capacity Current Tax Capacity (for taxes collectible in 1997) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1997 52 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $42,933 $109,448 $66,515 $1,835,000 $1,835,000 $0 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) October 4, 2014 $14,048 $40,090 $26,042 Redevelopment HRA (Minnesota Statutes Sections 469.174 to 469.179 inclusion as amended) December 31, 2022 $46,102 $47,601 1,499 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 G. 53rd Avenue Tax Increment Financial District N7 Type of District Economic Development Authorizing Law Minnesota Statutes Section 469.174 Duration of District December 11, 2006 Original Tax Capacity $139,840 Current Tax Capacity (for taxes collectible in 1997) $138,000 Captured Tax Capacity Retained - Bonds Issued - Principal Payments - Bonds Outstanding at December 31, 1997 - Changes in Long -Term Liabilities - During the year ended December 31, 1997, the following changes occurred in liabilities reported in the General Long -Term Debt Account Group: With the exception of the 1990 Tax Increment Bonds, all General Obligation Bonds are serial bonds which require semiannual payments of principal and/or interest from the date the bonds are issued. The 1990 Tax Increment Bonds are Capital Appreciation Bonds which require no payments of principal or interest until September 2002. During the year ended December 31, 1997, accreted interest of $1,496,863 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, 1997 there were seven series of Revenue Bonds outstanding, with an aggregate principal amount payable of $18,564,043. 53 Balance Balance City January 1 Additions Reductions December 31 General Obligation Tax Increment Bonds: Principal $7,469,721 $ - $1,155,000 $6,314,721 Accreted interest 1,236,947 259,916 - 1,496,863 Total City $8,706,668 $259,916 $1,155,000 $7,811,584 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, 1997, accreted interest of $1,496,863 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, 1997 there were seven series of Revenue Bonds outstanding, with an aggregate principal amount payable of $18,564,043. 53 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 Note 12 FUND EQUITY The following funds had a fund deficit as of December 31, 1997: Special Revenue Funds: Municipal State Aid $161,082 Community Development 6,013 EDA: EDA Rental Housing 872 Debt Service Funds: Multi -Use Redevelopment Plan 100,254 Capital Projects Funds: Medtronic Development 42,061 TIF District 92 2,243 Sheffield Redevelopment 738,571 Internal Service Funds: Energy Management 95,191 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 CH 62 CITY OF COLUMBIA HEIGHTS, DIINNESOTA t u CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 Reservations of retained earnings are summarized as follows at December 31, 1997: 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 $820,746 $ - $820,746 2,304,412 - 2,304,412 - 31,355 31,355 1,054,055 1,054,055 $3,125,158 $1,0854410 $4,210,568 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, 1997 are summarized as follows: Reserve for prepayments $26,232 Reserve for program expenditures 313,039 Reserve for real estate held for resale 140,713 Totals $479,984 C. DESIGNATED UNRESERVED FUND BALANCES Designated for Debt Service - These amounts represent fund balances which are presently committed to provide financial resources to pay principal and interest on the City's General Obligation Bonds. Designated for Subsequent Years' Expenditures - Unspent appropriations lapse at year -end. Amounts which are reappropriated in the next year's budget are reported as fund equity designations. Designated for abatement - Represents 20% of building permit revenue designated for removal of dangerous structures. 55 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 Designated for Working Capital - This amount represents funds set aside by the City to provide positive cash flow for the next fiscal year. Designated for Business Revolving Loan Fund - This amount represents funds set aside by the HRA to provide certain low interest loans. Designated for PVVS Maintenance - This amount represents funds set aside by the HRA to provide for maintenance costs in future years at Parkview Villa South senior housing. Designations for unreserved fund balances at December 31, 1997 are summarized as follows: City of Columbia Heights Special Debt Capital Expendable General Revenue Service Project Trust Total Designated for debt service $ - $ - $922,994 $ - $ - $922,994 Designated for subsequent years' expenditures 10,185 10,302 - 188,504 664,091 873,082 Designated for abatement - - 7,397 - 7,397 Designated for working capital 3,438,644 220,108 - 3,658,752 Designated for Business Revolving Loan Fund - 8,996 8,996 Designated for PVVS maintenance - 472,710 - - - 472,710 Total designated unreserved fund balance $3,448,829 $712,116 $922,994 $195,901 $664,091 $5,943,931 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, 1997 is as follows: 56 Water Sewer Refuse Liquor Total Operating revenue $1,222,749 $1,119,989 $1,336,968 $6,135,166 $9,814,872 Depreciation expense 67,459 105,194 1,360 39,325 213,338 Operating income (loss) 66,563 (6,660) 96,544 311,275 467,722 Net income (loss) 47,736 61,035 106,495 11,031 226,297 Total operating transfers (82,584) (82,584) (119,218) (244,969) (529,355) Property, plant and equipment additions (309,254) (118,188) - - (427,442) Net working capital 852,520 2,666,145 1,230,700 1,191,195 5,940,560 Net cash provided by operating activities 159,971 206,291 155,179 101,213 622,654 Total assets 3,133,727 4,945,200 1,239,331 1,638,009 10,956,267 Total equity - contributed 729,535 516,595 - - 1,246,130 Total equity - retained earnings 2,296,704 4,388,227 1,239,331 1,354,707 9,278,969 56 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 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 $755,829 $555,530 $188,849 $1,500,208 Less: Depreciation on contributed assets (26,294) (38,935) - (65,229) Balance - end of year $729,535 $516,595 $188,849 $1,434,979 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. 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. PERA issues a publicly available financial report that includes financial statements and required supplementary information- for PERF and PEPFF. That report may be obtained by writing to PERA, 514 St. Peter Street #200, St. Paul, Minnesota, 55102 or by calling (612)296 -7460 or 1- 800 - 652 -9026. 57 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 B. FUNDING POLICY Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 8.23% and 4.23 %, respectively, of their annual covered salary. PEPFF members are required to contribute 7.60% of their annual covered salary. The City of Columbia Heights is required to contribute the following percentages of annual covered payroll: 10.73% for Basic Plan PERF members, 4.48% for Coordinated Plan PERF members, and 11.40% for PEPFF members. The City's contributions for the last three years which were equal to the contractually required contributions for each year as set by State Statute are as follows: Year Ended December 31 PERF PEPFF 1995 $138,764 $144,896 1996 139,722 162,814 1997 138,673 162,502 Note 16 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. This plans provides retirement and disability benefits to members, and benefits to survivors upon death of eligible members. All benefit provisions and the obligation to make contributions are established and administered in accordance with Minnesota Statutes. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PFCF. That report may be obtained by writing to PERA, 514 St. Peter Street #200, St. Paul, Minnesota 55102 or by calling (612)296 -7460 or 1- 800 - 652 -9026. CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 B. FUNDING POLICY PFCF members and the City are required to contribute 7.6% and 11.4 %, respectively, of members covered payroll. The City is required to contribute an additional lump sum which is calculated annually to eliminate any unfunded liability. The contribution requirements are established by Minnesota Statutes and may be amended by the State legislature. Actuarial information is as follows: Valuation Date Actuarial Cost Method Amortization Method Remaining Amortization Period Asset Valuation Method Actuarial Assumptions: Investment Rate of Return Projected Salary increases Assumed Inflation Rate Payroll Growth Rate Mortality Table - Active Mortality Table - Retired Cost of Living Adjustment C. THREE YEAR TREND INFORMATION 6/30/97 Entry Age Level Percent Closed 13 years Cost + 1/3 Unrealized Gains or Losses 8.50% 5.25% - 11.5% 5.00% . 6.00% 1983 GAM Set Back 5 Years 1983 GAM 2.50% D. REQUIRED SUPPLEMENTARY INFORMATION Annual Percentage Net Pension of APC Pension Year Ended Cost (APC) Contributed Obligation Fire Account 6/30/95 N/A N/A N/A 6/30/96 N/A N/A N/A 6/30/97 $45,389 100% $0 Police Account 6/30/95 N/A N/A N/A 6/30/96 N/A N/A N/A 6/30/97 $36,931 100% $0 D. REQUIRED SUPPLEMENTARY INFORMATION 59 (Unfunded) UAAL Actuarial Actuarial Actuarial /Assets As A % Valuation Value of Accrued In Excess Of Funded Covered of Covered Date Assets Liability (AAL) AAL (UAAL) Ratio Payroll Payroll Fire Account 6/30/95 N/A N/A N/A N/A N/A N/A 6/30/96 N/A N/A N/A N/A N/A N/A 6/30/97 $2,143,991 $1,808,546 $335,445 119% $39,276 N/A - fully funded Police Account 6/30/95 N/A N/A N/A N/A N/A N/A 6/30/96 N/A N/A N/A N/A N/A N/A 6/30/97 $4,104,861 $4,261,880 ($157,019) 96% $172,355 91% 59 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 Note 17 DEFINED CONTRIBUTION PLAN - FIRE RELIEF ASSOCIATION, VOLUNTEER DIVISION A. PLAN DESCRIPTION The Columbia Heights Fire Department Relief Association is the administrator of a single- employer pension plan for the volunteer members of the City of Columbia Heights Fire Department. Through October 26, 1997, the Association operated as a defined benefit plan. Effective October 27, 1997, the Association amended its by laws and converted to a defined contribution plan. The pension plan was fully funded at the time of conversion. Benefits and contribution requirements are established by the Association's by laws and can be amended by the Association's board of directors with approval from the City of Columbia Heights. All provisions are within limitations established by Minnesota Statutes. Type of Benefit. The exclusive pension provided by the Association is a "Defined Contribution Lump Sum Service Pension" as defined in Minnesota Statutes §424A.02, Subdivision 4. Contributions Required and Contributions Made. No contributions are required from the plan members or the City of Columbia Heights. The Plan is funded through State aid, investment earnings and discretionary contributions from the City of Columbia Heights. For 1997, $52,735 of State aid was contributed to the Plan. Note 18 DEFERRED COMPENSATION PLAN The City offers its employees deferred compensation plans created in accordance with Internal Revenue Code Section 457. The plans, available to all employees, permit them to defer a portion of their salary until future years. The deferred compensation is not available to the employees until termination, retirement, death of unforeseeable emergency. On August 20, 1996 the provisions of Internal Revenue Code Section 457 were amended to enable plans to hold all assets and income of the plan in trust for the exclusive benefit of participants and their beneficiaries. These assets were previously required to be held as property of the City. The Governmental Accounting Standards Board (GASB) issued Statement 32 in October 1997. This Statement rescinds GASB Statement 2 which required deferred compensation plans to be presented as Agency Funds within the City's financial statements. GASB 32 is effective for the year ended December 31, 1999 or on the date (if earlier) that the plan changes its trust provisions. In 1997, all City Plan's were amended to hold the plan assets in trust for the plan participants and their beneficiaries. The deferred compensation agency fund is therefore closed at December 31, 1997. •1 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 Note 19 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 is a named defendant in an ongoing claim in which the plaintiffs are seeking $1.6 million in damages. The City attorneys have indicated that it is unlikely that the plaintiffs will be able to demonstrate any claim. However, City management has indicated that it is reasonably possible that a settlement could be reached for a significantly smaller amount. C. FEDERAL AND STATE FUNDS Amounts received or receivable from federal and state agencies are subject to agency audit and I 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 City expects such amounts, if any, to be immaterial. D. CONSTRUCTION Significant construction commitments at December 31, 1997 are as follows: 61 Total Project Contract Remaining No. Awarded Contract 9505/9124 $70,747 $22,289 9505/9124 161,300 1,613 9722 15,965 14,140 9721 45,577 39,442 9530/9606 46,574 3,912 Zone 1 and 2 Rehab 1,270,163 39,107 61 CH 62 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS re CH m CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND The Home Rule Charter of the City of Columbia Heights provides in Section 69, Subdivision (c): "A General Fund for the support of such other funds and for the payment of such expenses of the City as the Council may deem proper. Into this fund shall be paid all monies not herein provided to paid (sic) into any other fund." 65 t 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA r w 66 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND Statement 6 �i BALANCE SHEET December 31, 1997 With Comparative Amounts For December 31, 1996 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 1997 1996 $3,963,872 $3,672,775 8,136 5,815 49,230 17,080 48,239 33,408 36,564 25,568 76,252 51,203 241,280 394,257 16,778 15,284 $4,440,351 $43,307 169,001 83,331 84,118 379,757 16,778 10,185 3,438,644 594,987 4,060,594 $4,440,351 $4,215,390 $59,356 174,055 80,721 61,908 376,040 15,284 24,835 3,257,316 541,915 3,839,350 $4,215,390 67 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND Statement 7 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - Page 1 of 2 BUDGET AND ACTUAL For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 Expenditures: General government: Council 167,408 1997 (12,063) 181,189 Manager 324,249 Over (6,420) 258,461 Legal (under) 1996 (20) Budget Actual Budget Actual Revenues: (21,027) 476,916 Assessing Taxes $2,517,101 $2,505,456 ($11,645) $2,403,017 Licenses and permits 156,200 202,533 46,333 223,758 Intergovernmental 3,339,757 3,415,694 75,937 3,219,370 Charges for services 324,425 343,821 19,396 310,756 Fines and forfeitures 90,000 127,074 37,074 125,543 Interest 130,000 234,650 104,650 164,033 Other revenues: 2,542,310 (126,048) 2,597,866 Miscellaneous 32,488 15,976 (16,512) 14,995 Proceeds from sale of land 500 - (500) 19,600 Total revenues 6,590,471 6,845,204 254,733 6,481,072 Expenditures: General government: Council 167,408 155,345 (12,063) 181,189 Manager 324,249 317,829 (6,420) 258,461 Legal 196,115 196,095 (20) 193,845 Finance and elections 513,036 492,009 (21,027) 476,916 Assessing 119,018 118,579 (439) 115,969 General government buildings 160,237 117,272 (42,965) 127,912 Total general government 1,480,063 1,397,129 (82,934) 1,354,292 Public safety: Police /animal/civil defense 1,981,742 1,929,187 (52,555) 1,937,582 Fire 686,616 613,123 (73,493) 660,284 Total public safety 2,668,358 2,542,310 (126,048) 2,597,866 Public works: Engineering 393,120 392,633 (487) 316,551 Maintenance 719,402 683,049 (36,353) 649,126 Total public works 1,112,522 1,075,682 (36,840) 965,677 Other departments: Sanitation 146,758 84,251 (62,507) 124,580 Parks and recreation 1,223,777 1,111,214 (112,563) 1,023,952 Contingencies 20,100 920 (19,180) 2,260 Total other departments 1,390,635 1,196,385 (194,250) 1,150,792 Total expenditures 6,651,578 6,211,506 (440,072) 6,068,627 68 I 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, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 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 Residual equity transfers Fund balance - December 31 t r t t 3,839,350 $4,060,594 3,591,224 $3,839,350 Wit 1997 Over (under) 1996 Budget Actual Budget Actual ($61,107) $633,698 $694,805 $412,445 421,436 421,436 - 402,559 (761,620) (833,890) (72,270) (614,837) (340,184) (412,454) (72,270) (212,278) ($401,291) 221,244 $622,535 200,167 3,839,350 $4,060,594 3,591,224 $3,839,350 Wit CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND Statement 8 SCHEDULE OF REVENUES - BUDGET AND ACTUAL For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 1997 70 Over (under) 1996 Budget Actual Budget Actual Revenues: Property taxes: Ad valorem $2,517,101 $2,504,686 ($12,415) $2,399,207 Penalties and interest - 770 770 3,810 Total taxes 2,517,101 2,505,456 (11,645) 2,403,017 Licenses and permits: Licenses 50,050 85,948 35,898 92,385 Permits 106,150 116,585 10,435 131,373 Total licenses and permits 156,200 202,533 46,333 223,758 Intergovernmental: Federal grants: Civil defense 4,000 4,534 534 5,357 Disaster assistance - 19,840 19,840 - State grants: State grant - - - 4,080 Local government aid 2,196,091 2,207,929 11,838 2,111,917 Property tax relief 959,628 959,829 201 940,082 Law officer training 7,000 7,950 950 7,738 Police Relief Association 122,678 157,907 35,229 89,482 County aid: Street maintenance 15,360 20,480 5,120 20,480 County grant - - - 4,105 School district 35,000 37,225 2,225 36,129 Total intergovernmental 3,339,757 3,415,694 75,937 3,219,370 Charges for services: General government 10,000 21010 (7,990) 1,270 Public safety 136,800 147,724 10,924 140,864 Public works 11,200 39,158 27,958 13,523 Parks and recreation 166,425 154,929 (11,496) 155,099 Total charges for services 324,425 343,821 19,396 310,756 Fines and forfeitures Public safety 90,000 127,074 37,074 125,543 Total fines and forfeitures 90,000 127,074 37,074 125,543 Other revenues: Interest 130,000 234,650 104,650 164,033 Miscellaneous 27,988 9,223 (18,765) 5,072 Proceeds from sale of land 500 - (500) 19,600 Other refunds 4,500 6,753 2,253 9,923 Total other revenues 162,988 250,626 87,638 198,628 Total revenues $6,590,471 $6,845,204 $254,733 $6,481,072 70 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND Statement 9 SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 71 1997 Actual Supplies Over Personal and Capital (under) 1996 Budget Services Services Outlay Total Budget Actual Expenditures: General government: Council and manager: Council $167,408 $87,933 $67,412 $ - $155,345 ($12,063) $181,189 Manager 324,249 284,426 33,403 - 317,829 (6,420) 258,461 Legal 196,115 - 196,095 - 196,095 (20) 193,845 Total council and manager 687,772 372,359 296,910 0 669,269 (18,503) 633,495 Administrative services: Finance 485,645 419,819 58,718 3,239 481,776 (3,869) 453,079 Elections 27,391 7,656 2,577 - 10,233 (17,158) 23,837 Assessing 119,018 41,284 77,295 - 118,579 (439) 115,969 General government buildings 160,237 16,126 98,614 2,532 117,272 (42,965) 127,912 Total administrative services 792,291 484,885 237,204 5,771 727,860 (64,431) 720,797 Total general government 1,480,063 857,244 534,114 5,771 1,397,129 (82,934) 1,354,292 Public safety: Police 1,939,438 1,698,153 194,664 527 1,893,344 (46,094) 1,903,720 Fire 686,616 549,283 63,840 - 613,123 (73,493) 660,284 Civil defense 28,979 17,782 10,030 - 27,812 (1,167) 22,168 Animal control 13,325 - 8,031 - 8,031 (5,294) 11,694 Total public safety 2,668,358 2,265,218 276,565 527 2,542,310 (126,048) 2,597,866 Public works, highways and streets: Engineering 393,120 181,203 206,303 5,127 392,633 (487) 316,551 Streets 541,664 252,157 262,779 20,081 535,017 (6,647) 499,727 Street lighting 118,579 2,516 103,037 - 105,553 (13,026) 109,707 Traffic signs /signals 59,159 24,835 17,644 - 42,479 (16,680) 39,692 Total public works, highways and streets 1,112,522 460,711 589,763 25,208 1,075,682 (36,840) 965,677 Other departments: Sanitation 146,758 34,728 49,523 - 84,251 (62,507) 124,580 Parks and recreation 1,223,777 672,774 420,987 17,453 1,111,214 (112,563) 1,023,952 Contingencies 20,100 - 920 - 920 (19,180) 2,260 Total other departments 1,390,635 707,502 471,430 17,453 1,196,385 (194,250) 1,150,792 Total expenditures $6,651,578 $4,290,675 $1,871,872 $48,959 $6,211,506 ($440,072) $6,068,627 71 CH 72 CITY OF COLUMBIA HEIGHTS, MPMESOTA 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.R.E. (Drug Awareness) Program. Library Fund - established in 1993 to account for revenues and expenditures of the library. 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. COPS MORE 96 Grant - established to account for revenues and expenditures associated with a federal grant received for technical service equipment and personnel. Juvenile Justice Grant - established to account for revenues and expenditures associated with the removal of graffiti in 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 ,r 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. 01 Confiscated Property Fund - established to account for funds from property confiscated by the police department. 73 A (D CITY OF COLUMBIA HEIGHTS, hM4NESOTA 6 i A 74 1 n 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 HRA 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. shed to account for revenues and Parkview Villa South Fund - established expenditures p 10 associated with a EDA owned senior housing complex. Rental Housing Fund - established to account for revenues and expenditures of City -owned rental properties. 75 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1997 With Comparative Totals For December 31, 1996 Municipal State Aid Assets Cable Television D.A.R.E. Program Cash and investments $7,055 $314,076 $9,860 Receivables: Accounts - 22,716 - Taxes - - - Interest - 3,404 - Loans - - - Due from other governmental units 16,539 - - Due from other funds - - - Prepayments - 144 - Real estate held for resale - - - Total assets $23,594 $340,340 $9,860 Liabilities and Fund Balance Liabilities: Accounts payable $3,091 $2,289 $ - Accrued salaries and withholdings payable 93 - - Contracts payable - retained percentage 11,037 - - Due to other governmental units - Due to other funds 170,455 - - Deferred revenue - Deposits - - - Insurance and taxes in escrow - - - Total liabilities 184,676 2,289 0 Fund balance: Reserved for prepayments - 144 - Reserved for real estate held for resale - - - Reserved for program expenditures - - - Unreserved: Designated for subsequent years' expenditures 1,485 7,072 - Designated for working capital - - - Designated for maintenance Designated for Business Revolving Loan Fund - - - Undesignated (162,567) 330,835 9,860 Total fund balance (161,082) 338,051 9,860 Total liabilities and fund balance $23,594 $340,340 $9,860 76 77 Statement 10 Page 1 of 2 FAST Community Cops Juvenile Local Law Federal COPS Development MORE 96 Justice Enforcement Library Police Grant Grant Fund Grant Grant Block Grant $254,262 $53,494 $77,879 $685 $12,722 $3,039 $1,958 1,841 236 1,023 - - - 118 = 32,949 18,632 7,828 - - 829 - - - $263,931 $86,679 $97,534 $1,514 $12,722 $3,039 $2,076 $9 $ - $ - $752 $ - $ - $ - 10,405 4,396 1,971 6,775 - - - 1,627 - - - - - - - - - - - 3,039 - 12,041 4,396 1,971 7,527 0 3,039 0 7,828 - - 829 - - - 1,745 - - - - - - 220,108 - - - - - - 22,209 82,283 95,563 (6,842) 12,722 - 2,076 251,890 82,283 95,563 (6,013) 12,722 0 2,076 $263,931 $86,679 $97,534 $1,514 $12,722 $3,039 $2,076 77 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1997 With Comparative Totals For December 31, 1996 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 and 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 78 Recreation Contributed Projects $44,610 Contributed Projects $13,789 $44,610 $13,789 $9 $ - 9 0 44,601 44,601 $44,610 13,789 13,789 $13,789 Parking Ramp $234,333 2,358 408,027 $644,718 ■ 644,718 644,718 $644,718 79 Statement 10 Page 2 of 2 Total Housing and Economic Confiscated Housing Redevelopment Development Totals Property Mortgage C.H.A.S.E. Authority Authority 1997 1996 $2,325 $23,912 $ - $ - $1,065,117 $2,119,116 $2,139,930 - - - - 7,381 30,097 21,186 - - - 1,952 1,614 3,566 1,028 - 240 - - 10,217 19,437 15,689 - - - 112,402 168,741 281,143 303,695 - 30,926 - 81,360 180,406 315,992 _ 446,352 11,712 866,091 948,684 - - - - 653 9,454 4,090 - - - 21,113 63,000 84,113 84,113 $2,325 $470,504 $30,926 $147,179 $1,398,083 $3,593,423 $3,834,407 S$ - $ - $2,845 $ - $51,372 $60,367 $76,837 - - 613 - 2,490 26,743 22,522 - - - - - 11,037 - - - 344 - 33,956 35,927 31,625 - - 25,368 3,662 11,712 211,197 417,472 - 113,202 474,914 591,155 815,743 = _ 19,432 19,432 17,622 - - - 206 - 206 231 0 0 29,170 117,070 593,876 956,064 1,382,052 - 653 9,454 4,090 = _ _ 21,113 - 21,113 21,113 - - - - 313,039 313,039 550,553 - - - - - 10,302 13,885 - - - - - 220,108 214,348 - - - - 472,710 472,710 394,922 - - - 8,996 - 8,996 - 2,325 470,504 1,756 - 17,805 1,581,637 1,253,444 2,325 470,504 1,756 30,109 804,207 2,637,359 2,452,355 $2,325 $470,504 $30,926 $147,179 $1,398,083 $3,593,423 $3,834,407 79 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1997 With Comparative Totals For The Year Ended December 31, 1996 :1 Municipal State Cable D.A.R.E. Aid Television Program Revenues: Taxes $ - $ - $ - Intergovernmental 368,757 - 5,000 Fees /program revenues - 89,847 - Rents - - - Interest - 21,846 - Other revenues: Miscellaneous - 4,042 63 Contributions - - 772 Total revenues 368,757 115,735 5,835 Expenditures: Parks and recreation: Personal services - - - Supplies - - - Other services and charges - - - Capital outlay - - - Other: Personal services 51,104 420 - Supplies 22,176 10,969 6,376 Other services and charges 60,741 57,903 1,003 Capital outlay 242,938 59,965 - Total expenditures 376,959 129,257 7,379 Revenues over (under) expenditures (8,202) (13,522) (1,544) Other financing sources (uses): Operating transfers in - - 8,075 Operating transfers (out) (130,430) (44,072) - Total other financing sources (uses) (130,430) (44,072) 8,075 Net increase (decrease) in fund balance (138,632) (57,594) 6,531 Fund balance (deficit) - January 1 (22,450) 395,645 3,329 Residual equity transfers - - - Fund balance (deficit) - December 31 ($161,082) $338,051 $9,860 :1 Statement 11 Page 1 of 2 i FAST Community Cops Local Law Recreation Federal COPS Development MORE 96 Enforcement Contributed ' Library Police Grant Grant Fund Grant Block Grant Projects ' $422,043 $ - $ - $ - $ - $ - $ - - 37,004 26,728 - - 20,348 - 17,307 ' 11,814 - 1,517 - 6,570 - - - - - 758 - - 10 - - 126 - - = _ 48,997 451,174 38,521 33,298 126 0 21,106 48,997 ' - - - - - - 13,264 - - - - - - 5,582 298,202 119,785 52,805 140,860 - - - 75,215 - - 2,108 - 14,781 53,941 49,907 91 1,611 = 25,588 - - - 1,600 5,008 - 452,946 119,785 52,805 192,875 1,691 21,400 18,846 (1,772) (81,264) (19,507) (192,749) (1,691) (294) 30,151 - 119,740 17,237 258,000 14,413 - - (7,127) - (34,000) (8,228) - - - (7,127) 119,740 (16,763) 249,772 14,413 0 0 (8,899) 38,476 (36,270) 57,023 12,722 (294) 30,151 ' 260,789 43,807 131,833 (63,036) - 2,370 14,450 $251,890 $82,283 $95,563 ($6,013) $12,722 $2,076 $44,601 i CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1997 With Comparative Totals For The Year Ended December 31, 1996 Revenues: Taxes Intergovernmental Fees /program revenues Rents Interest Other revenues: Miscellaneous Contributions Total revenues Expenditures: Parks and recreation: Personal services Supplies Other services and charges Capital outlay Other: Personal services Supplies Other services and charges Capital outlay Total expenditures 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 Contributed Parking Confiscated Projects Ramp Property 15,132 - - - 2,632 3,924 - - 3,924 15,132 2,632 961 2,532 3,493 431 431 13,358 $13,789 439 1,027 0 3,235 15,132 (603) 15,132 629,586 $644,718 0 (603) 2,928 $2,325 i Total Cops Housing and Economic Housing Overtime Redevelopment Development Mortgage C.H.A.S.E. Grant Authority Authority 1997 Totals Statement 11 Page 2 of 2 1996 $ - $ - $ - $71,794 $97,067 $590,904 $486,040 - 71,735 4,629 11,896 340,840 886,937 920,234 - 1,757 20,094 10,076 139,081 133,611 - - - - 440,583 440,583 435,234 1,544 - 7,714 78,116 145,011 122,949 ' - 22,729 29,602 84,921 = _ _ 28,591 82,284 48,090 1,544 73,492 4,629 111,498 1,018,002 2,314,402 2,231,079 38,455 38,455 - ' = 11,906 = _ = 25,170 21,968 - 21,375 - - - 26,957 9,163 _ - - - - 1,100 - - 5,027 - 96,641 764,844 671,416 - 25,877 158,902 102,737 _ 685,605 914,361 789,733 - - - - 4,028 340,896 383,116 0 71,736 5,027 0 812,151 2,269,585 1,979,233 1,544 1,756 398 111,498 205,851 44,817 251,846 ' - - - 50,000 45,337 512,802 431,963 - - - (115,942) (32,816) (372,615) (453,674) 0 0 0 (65,942) 12,521 140,187 (21,711) 1,544 1,756 (398) 45,556 218,372 185,004 230,135 ' 468,960 - 398 (15,447) 585,835 2,452,355 2,351,901 (47,959) ■ $470,504 $1,756 $0 $30,109 $804,207 $2,637,359 $2,534,077 83 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, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 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 (out): Maintenance Construction Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance (deficit) - January 1 Fund balance (deficit) - December 31 ., 1997 Over (under) 1996 Budget Actual Budget Actual $130,000 $160,056 $30,056 $157,672 217,000 208,701 (8,299) 70,636 - - - 20,919 9,800 19,378 9,578 16,357 4,600 22,072 17,472 3,118 44,075 23,201 (20,874) 40,125 48,692 22,178 (26,514) 30,135 - 31,726 31,726 14,144 - 104 104 - - 37,540 37,540 10,273 332,744 220,760 (111,984) 62,893 439,911 376,959 (62,952) 177,045 (92,911) (8,202) 84,709 72,182 (50,000) (50,000) - (50,000) - (80,430) (80,430) - (50,000) (130,430) (80,430) (50,000) ($142,911) (138,632) $4,279 22,182 (22,450) (44,632) ($161,082) ($22,450) ' CITY OF COLUMBIA HEIGHTS MINNESOTA 'SPECIAL REVENUE FUND - CABLE TELEVISION FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 1 Over ' Budget Revenues: 1996 Franchise fees $75,000 Interest 15,000 Other revenues: $82,679 Miscellaneous - Total revenues 90,000 Expenditures: 39,793 1 Personal services 1,013 Supplies 3,629 Other services and charges 54,889 1 Capital outlay 94,390 Total expenditures 153,921 1 Revenues over expenditures (63,921) Other financing sources (uses): ' Operating transfers (out) (44,072) Net increase (decrease) in fund balance ($107,993) ' Fund balance - January 1 1 Fund balance - December 31 1 i i 1 Statement 13 1997 420 Over 456 10,969 (Under) 1996 Actual Budget Actual $89,847 $14,847 $82,679 21,846 6,846 20,227 4,042 4,042 39,793 420 (593) 456 10,969 7,340 614 57,903 3,014 27,307 59,965 (34,425) 23,774 129,257 (24,664) 52,151 (13,522) 50,399 90,548 (44,072) - (49,396) (57,594) $50,399 41,152 $338,051 $395,645 HM CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - D.A.R.E. PROGRAM Statement 14 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 Revenues: State grant Other revenues: Miscellaneous 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 Net increase in fund balance Fund balance - January 1 Fund balance - December 31 M, $9,860 $3,329 1997 Over (Under) 1996 Budget Actual Budget Actual $ - $5,000 $5,000 $ - - 63 63 - 1,000 772 (228) 548 1,000 5,835 4,835 548 6,100 6,376 276 2,480 2,975 1,003 (1,972) 1,131 9,075 7,379 (1,696) 3,611 (8,075) (1,544) 6,531 (3,063) 8,075 8,075 - 5,325 8,075 8,075 0 5,325 $0 6,531 $6,531 2,262 $9,860 $3,329 r CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - LIBRARY FUND Statement 15 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 ' Revenues: Taxes Charges for services Interest Other revenues: Miscellaneous Total revenues Expenditures: Personal services Supplies Other services and charges Capital outlay Total expenditures Revenues over (under) expenditures ' Other financing sources (uses): Operating transfers (out) ' Total other financing sources (uses) Net increase (decrease) in fund balance 1 Fund balance - January 1 IFund balance - December 31 1997 Over (under) 1996 Budget Actual Budget Actual $422,043 $422,043 22,900 17,307 14,000 11,814 $ - $413,768 (5,593) 17,291 (2,186) 9,219 50 10 (40) - 458,993 451,174 (7,819) 440,278 297,707 298,202 495 291,313 73,855 75,215 1,360 65,722 65,010 53,941 (11,069) 52,012 32,630 25,588 (7,042) 8,921 469,202 452,946 (16,256) 417,968 (10,209) (1,772) 8,437 22,310 (7,127) (7,127) - (7,074) (7,127) (7,127) 0 (7,074) ($17,336) (8,899) $8,437 15,236 260,789 245,553 $251,890 $260,789 M. CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - PROJECT PRIDE Statement 16 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 Revenues: Fees /program revenues Other revenues: Contributions Total revenues Expenditures: Personal services Supplies Other services and charges Total expenditures Net increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 1997 Over (Under) Budget Actual Budget $1,000 $ - ($1,000) 2,500 - (2,500) 3,500 0 (3,500) 553 - 1,100 - 1,532 - 3,185 $315 $0 (553) (1,100) (1,532) (2,632) ($868) 1996 Actual 0 163 1,642 1,805 (1,805) 1,805 $0 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - FEDERAL POLICE GRANT Statement 17 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL The Year Ended December 31, 1997 'For With Comparative Actual Amounts For The Year Ended December 31, 1996 1997 Over (Under) 1996 ' Budget Actual Budget Actual Revenues: Federal grant $31,641 $37,004 $5,363 $45,036 Interest 1,517 (1,517) 1,839 Total revenues 31,641 38,521 5,363 46,875 Expenditures: Personal services 112,290 119,785 7,495 91,213 Total expenditures 112,290 119,785 7,495 91,213 Revenues over (under) expenditures (80,649) (81,264) (2,132) (44,338) ' Other financing sources: Operating transfers in 119,470 119,740 11,705 Net increase (decrease) in fund balance $38,821 38,476 ($345) (32,633) Fund balance - January 1 43,807 76,440 ' Fund balance - December 31 $82,283 $43,807 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - FAST COPS GRANT Statement 18 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 Revenues: Federal grant Interest Total revenues Expenditures: Personal services Total expenditures Revenues over (under) expenditures Other financing sources: Operating transfers in Operating transfer (out) Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 •N $95,563 $131,833 1997 Over (Under) 1996 Budget Actual Budget Actual $25,500 $26,728 ($1,228) $30,965 - 6,570 (6,570) 3,682 25,500 33,298 (7,798) 34,647 42,737 52,805 (10,068) 32,171 42,737 52,805 (10,068) 32,171 (17,237) (19,507) (2,270) 2,476 17,237 17,237 - 60,000 (34,000) (34,000) - - (16,763) (16,763) 0 60,000 ($34,000) (36,270) ($2,270) 62,476 $95,563 $131,833 CITY OF COLUMBIA HEIGHTS MINNESOTA SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT Statement 19 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 Revenues: Miscellaneous Expenditures: Personal services Supplies Other services and charges ' Total expenditures Revenues over (under) expenditures Other financing sources: Operating transfers in I Operating transfers (out) Total other financing sources (uses) ' Net increase (decrease) in fund balance Fund balance (deficit) - January 1 ' Fund balance (deficit) - December 31 (206,936) (192,749) (180,116) 216,000 1997 126,973 (8,228) (8,228) - (9,893) Over 249,772 42,000 117,080 $836 (Under) 1996 Budget Actual Budget Actual $ - $126 $126 $ - 161,084 140,860 (20,224) 125,993 7,430 2,108 (5,322) 2,209 38,422 49,907 11,485 51,914 206,936 192,875 (14,061) 180,116 (206,936) (192,749) (180,116) 216,000 258,000 42,000 126,973 (8,228) (8,228) - (9,893) 207,772 249,772 42,000 117,080 $836 57,023 $56,187 (63,036) (63,036) ($6,013) ($63,036) 91 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - COPS MORE 96 Statement 20 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1997 Revenues Expenditures: Other services and charges Capital outlay 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 92 1997 Over (Under) Budget Actual Budget 91 91 1,600 1,600 0 (1,691) (1,691) 14,413 14,413 - $14,413 12,722 ($1,691) $12,722 CITY OF COLUMBIA HEIGHTS, MINNESOTA REVENUE FUND - LOCAL LAW ENFORCE MENT BLOCK GRANT Statement 21 'SPECIAL STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE The Year Ended December 31, 1997 'For With Comparative Actual Amounts For The Year Ended December 31, 1996 1996 '1997 Revenues: Federal grant $20,348 $ - Interest 758 109 Total revenues 21,106 109 Expenditures: ISupplies 14,781 - Other services and charges 1,611 Capital outlay 5,008 - ' Total expenditures 21,400 - Revenues over (under) expenditures (294) 109 Other financing sources: Operating transfers in - 2,261 Net increase (decrease) in fund balance (294) 2,370 ' Fund balance - January 1 2,370 - Fund balance - December 31 $2,076 $2,370 i CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - RECREATION CONTRIBUTED PROJECTS Statement 22 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1997 With Comparative Amounts For The Year Ended December 31, 1996 Revenues: Contributions Total revenues Expenditures: Supplies Other services and charges Total expenditures Net increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 •, 1997 $48,997 48,997 13,264 5,582 18,846 30,151 14,450 $44,601 1996 $31,267 31,267 20,470 5,168 25,638 5,629 8,821 $14,450 CITY OF COLUMBIA HEIGHTS, MINNESOTA REVENUE FUND - CONTRIBUTED PROJECTS Statement 23 'SPECIAL STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1997 With Comparative Amounts For The Year Ended December 31, 1996 1997 1996 Revenues: 1 Contributions $3,924 $16,275 Expenditures: Supplies 961 4,784 Other services and charges 2,532 240 Capital outlay - 10,292 ' Total expenditures 3,493 15,316 Net increase in fund balance 431 959 Fund balance - January 1 13,358 12,399 Fund balance - December 31 $13,789 $13,358 i 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, 1997 With Comparative Amounts For The Year Ended December 31, 1996 Revenues: Interest Expenditures Net increase in fund balance Fund balance - January 1 Fund balance - December 31 a 1997 1996 $15,132 $12,102 15,132 629,586 $644,718 12,102 617,484 $629,586 CITY OF COLUMBIA HEIGHTS, MINNESOTA REVENUE FUND - CONFISCATED PROPERTY Statement 25 'SPECIAL STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1997 With Comparative Amounts For The Year Ended December 31, 1996 i1997 1996 Revenues: Confiscated property $2,632 $ - Expenditures: Supplies 439 = Other services and charges 1,027 Capital outlay 1,769 - Total expenditures 3,235 0 Net increase (decrease) in fund balance (603) 0 Fund balance - January 1 2,928 2,928 Fund balance - December 31 $2,325 $2,928 I CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - HOUSING MORTGAGE Statement 26 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1997 With Comparative Amounts For The Year Ended December 31, 1996 Revenues: Interest Expenditures Net increase in fund balance Fund balance - January 1 Fund balance - December 31 1997 1,544 468,960 $470,504 1996 $1,235 1,235 467,725 $468,960 t CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - C .H .A .S .E . Statement 27 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 1997 1996 Revenues: Intergovernmental $71,735 $4,788 ' Fees /program revenue 1,757 Total revenues 73,492 4,788 Expenditures: Personal services 38,455 - Supplies 11,906 1,335 Other services and charges 21,375 2,353 Capital outlay - 1,100 Total expenditures 71,736 4,788 Net increase in fund balance 1,756 0 Fund balance (deficit) - January 1 - - Fund balance (deficit) - December 31 $1,756 $0 A ' CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - COPS GRANT OVERTIME Statement 28 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 Revenues: Intergovernmental Interest Total revenues Expenditures: Personal services Supplies Other services and charges Total expenditures Net increase (decrease) in fund balance Fund balance (deficit) - January 1 Fund balance (deficit) - December 31 100 1997 1996 $4,629 $25,372 - 398 4,629 25,770 5,027 22,919 - 2,433 - 20 5,027 25,372 (398) 398 398 - $0 $398 CITY OF COLUMBIA HEIGHTS, MINNESOTA 1 SPECIAL REVENUE FUND - HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT) STATEMENT OF REVENUES, EXPENDITURES AND Statement 29 CHANGES IN FUND BALANCE For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 Revenues: Taxes Intergovernmental revenue Fees /program revenues Interest Other Total revenues Expenditures: Personal services Other services and charges Loans & Grants Total expenditures IRevenues over expenditures Other financing sources: ' Operating transfers in Operating transfers (out) Total other financing sources (uses) INet increase (decrease) in fund balance ' Fund balance (deficit) - January 1 Fund balance (deficit) - December 31 (15,447) $30,109 ($15,447) 101 1997 Over (Under) 1996 Budget Actual Budget Actual $72,192 $71,794 ($398) $72,272 11,000 11,896 896 17,466 - 20,094 20,094 31,263 - 7,714 7,714 8,123 - - - 160 83,192 111,498 28,306 129,284 - - - 6,482 - - - 7,709 - - - 50,000 0 0 0 64,191 83,192 111,498 28,306 65,093 50,000 50,000 - 81,561 (115,942) (115,942) - (215,622) (65,942) (65,942) 0 (134,061) $17,250 45,556 $28,306 (68,968) (15,447) $30,109 ($15,447) 101 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS - ECONOMIC DEVELOPMENT AUTHORITY (COMPONENT UNIT) COMBINING BALANCE SHEET December 31, 1997 With Comparative Totals For December 31, 1996 Liabilities and Fund Balance Liabilities: Economic Parkview Development Villa Authority North Admin $264,033 442 1,933 194 $266,602 $23,467 6,877 1,614 1,137 363 $33,458 Accounts payable Anoka $31,980 $534 County 114 CDBG Assets 4,079 Cash and investments $71,441 Receivables: - - Accounts 62 Taxes - Interest - Loans 168,741 Due from other governmental units 22,162 Prepayments - Real estate held for resale 63,000 Total assets $325,406 Liabilities and Fund Balance Liabilities: Economic Parkview Development Villa Authority North Admin $264,033 442 1,933 194 $266,602 $23,467 6,877 1,614 1,137 363 $33,458 Accounts payable $ - $31,980 $534 Accrued salaries and withholdings payable 114 48 1,297 Due to other governmental units 4,079 14,800 - Due to other funds - - - Deferred revenue 231,741 12,178 - Deposits 1,000 9,825 - Total liabilities 236,934 68,831 1,831 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 102 88,472 88,472 $325,406 194 197,577 197,771 363 12,587 18,677 31,627 $266,602 $33,458 Statement 30 103 Parkview Villa Rental Total Section 8 South Housing 1997 1996 $173,804 $505,670 $26,702 $1,065,117 $1,016,263 7,381 1,348 _ _ = 1,614 3,231 4,787 266 10,217 8,082 - - - 168,741 171,199 58,061 - - 81,360 208,187 96 653 382 - - - 63,000 63,000 $235,096 $510,553 $26,968 $1,398,083 $1,468,461 $393 $17,110 $1,355 $51,372 $45,912 993 38 2,490 - 13,798 1,279 33,956 31,268 - - 11,712 11,712 143,194 219,307 431 11,257 474,914 644,630 - 6,370 2,237 19,432 17,622 220,693 37,747 27,840 593,876 882,626 - 96 - 653 382 14,403 313,039 81,593 - - 2,039 = 472,710 = 472,710 394,922 - - (872) 17,805 106,899 14,403 472,806 (872) 804,207 585,835 $235,096 $510,553 $26,968 $1,398,083 $1,468,461 103 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, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 Revenues: Taxes Intergovernmental Fees /program revenues Rents Interest Other revenues: Miscellaneous Contributions Total revenues Expenditures: Personal services Supplies Other services and charges Loans and grants 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 31 104 Anoka Parkview County Villa CDBG North 21,163 2,458 12,474 36,095 4,700 4 6,452 18,060 29,216 6,879 0 6,879 81,593 $88,472 64,531 233,207 12,404 11,095 321,237 2,317 14,129 220,703 1,867 239,016 82,221 (4,000) (4,000) 78,221 119,550 $197,771 Economic Development Authority Admin $97,067 28,654 7,618 28,591 161,930 61,935 2,540 37,491 26,695 128,661 33,269 45,337 (14,229) 31,108 64,377 (32,750) $31,627 IStatement 31 Parkview Villa Rental Total Section 8 1 South Housing 1997 1996 $ _ $ $ $97,067 $ - 226,492 _ _ 340,840 568,299 _ _ - 10,076 2,378 - 172,409 34,967 440,583 435,234 20,812 30,719 1,707 78,116 66,015 5,195 6,289 150 22,729 24,049 28,591 252,499 209,417 36,824 1,018,002 1,095,975 t 24,681 1,044 1,964 96,641 70,368 1,863 6,732 609 25,877 21,377 9,245 120,876 22,149 416,916 630,702 223,934 - - 268,689 - - 933 1,228 4,028 247,101 ' 259,723 129,585 25,950 812,151 969,548 (7,224) 79,832 10,874 205,851 126,427 _ _ - 45,337 144,138 (12,587) (2,000) - (32,816) (121,689) (12,587) (2,000) 0 12,521 22,449 (19,811) 77,832 10,874 218,372 148,876 34,214 394,974 (11,746) 585,835 436,959 $14,403 $472,806 ($872) $804,207 $585,835 105 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND- ECONOMIC DEVELOPMENT AUTHORITY - Statement 32 ANOKA COUNTY CDBG - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 Revenues: Intergovernmental revenue Fees /program revenues Interest Other Total revenues Expenditures: Personal services Supplies Other services and charges Loans & Grants Capital outlay Total expenditures Revenues over (under) expenditures Other financing sources: Operating transfers in Operating transfers (out) Total other financing sources Net increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 106 1997 Budget Actual $372,627 $21,163 - 2,458 12,474 142 39,277 207,328 122,435 $3,445 4,700 4 6,452 18,060 Over (Under) Budget ($351,464) 2,458 12,474 z 4,700 (138) (32,825) (189,268) (122,435) (339,966) 3,434 6,879 $3,434 81,593 $88,472 1996 $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 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - ECONOMIC DEVELOPMENT AUTHORITY- Statement 33 PARKVIEW VILLA NORTH - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 1 107 1997 Over (Under) 1996 Budget Actual Budget Actual Revenues: Intergovernmental revenue $ - $64,531 $64,531 $58,028 Rents 228,716 233,207 4,491 216,614 Interest 4,100 12,404 8,304 8,338 Other 25,120 11,095 (14,025) 11,510 Total revenues 257,936 321,237 (14,025) 294,490 Expenditures: ' Personal services 6,156 2,317 (3,839) 12,037 Supplies 20,902 14,129 (6,773) 12,866 Other services and charges 226,452 220,703 (5,749) 221,572 Capital outlay 1,750 1,867 117 13,037 Total expenditures 255,260 239,016 (16,244) 259,512 Revenues over expenditures 2,676 82,221 79,545 34,978 Other financing sources: Operating transfers (out) (4,000) (4,000) - (2,000) Net increase (decrease) in fund balance ($1,324) 78,221 $79,545 32,978 Fund balance - January 1 119,550 86,572 Fund balance - December 31 $197,771 $119,550 1 107 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - ECONOMIC DEVELOPMENT AUTHORITY - Statement 34 EDA ADMINISTRATION - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 Revenues: Taxes Intergovernmental revenue Fees /program revenues Interest on loans Interest Contributions Total revenues Expenditures: Personal services Supplies Other services and charges Loans & Grants Capital outlay Total expenditures Revenues over (under) expenditures Other financing sources: 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 1: 1997 57,428 1,780 61,861 265,000 34,580 61,935 2,540 37,491 26,695 128,661 33,269 34,580 45,337 (14,229) (14,229) $54,931 64,377 (32,750) $31,627 4,507 - 760 473 (24,370) 32,353 (238,305) - 10 (1,311) . (30,458) 10,757 - - (2,292) 10,757 (2,292) $9,446 (32,750) ($32,750) Over (Under) 1996 Budget Actual Budget Actual $99,000 $97,067 ($1,933) $ - 265,000 28,654 (236,346) - 29,723 7,618 (22,105) 2,378 3,426 - (3,426) - 500 - (500) - 23,000 28,591 5,591 - 420,649 161,930 (258,719) 2,378 57,428 1,780 61,861 265,000 34,580 61,935 2,540 37,491 26,695 128,661 33,269 34,580 45,337 (14,229) (14,229) $54,931 64,377 (32,750) $31,627 4,507 - 760 473 (24,370) 32,353 (238,305) - 10 (1,311) . (30,458) 10,757 - - (2,292) 10,757 (2,292) $9,446 (32,750) ($32,750) CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND- ECONOMIC DEVELOPMENT AUTHORITY - Statement 35 SECTION 8 HOUSING - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 1 109 1997 Over (Under) 1996 Budget Actual Budget Actual Revenues: Intergovernmental revenue $337,424 $226,492 ($110,932) $148,956 Interest - 20,812 20,812 21,398 Other - 5,195 5,195 7,259 Total revenues 337,424 252,499 (84,925) 177,613 Expenditures: Personal services 50,333 24,681 (25,652) 52,347 Supplies 2,200 1,863 (337) 759 Other services and charges 10,680 9,245 (1,435) 3,571 Loans & Grants 271,886 223,934 (47,952) 81,722 t Capital outlay 1,150 - (1,150) - Total expenditures 336,249 259,723 (76,526) 138,399 Revenues over (under) expenditures 1,175 (7,224) (8,399) 39,214 Other financing sources: Operating transfers (out) - (12,587) (12,587) (5,000) Net increase (decrease) in fund balance $1,175 (19,811) ($20,986) 34,214 �. Fund balance - January 1 34,214 - Fund balance - December 31 $14,403 $34,214 1 109 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND- ECONOMIC DEVELOPMENT AUTHORITY - Statement 36 PARKVIEW VILLA SOUTH - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 Revenues: Rents Interest Other Total revenues Expenditures: Personal services Supplies Other services and charges Capital outlay Total expenditures Revenues over expenditures Other financing sources: Operating transfers (out) Net increase in fund balance Fund balance - January 1 Fund balance - December 31 110 394,974 332,931 $472,806 $394,974 1997 Over (Under) 1996 Budget Actual Budget Actual $172,944 $172,409 ($535) $175,069 7,100 30,719 23,619 22,473 4,260 6,289 2,029 2,235 184,304 209,417 25,113 199,777 3,078 1,044 (2,034) 5,984 12,142 6,732 (5,410) 6,327 118,150 120,876 2,726 124,004 1,750 933 (817) 419 135,120 129,585 (5,535) 136,734 49,184 79,832 30,648 63,043 (2,000) (2,000) - (1,000) $49,184 77,832 $30,648 62,043 394,974 332,931 $472,806 $394,974 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND- ECONOMIC DEVELOPMENT AUTHORITY - Statement 37 RENTAL HOUSING - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 1997 Over (Under) 1996 Budget Actual Budget Actual Revenues: Intergovernmental revenue $ - $ - $ - $52 Rents 43,665 34,967 (8,698) 43,551 Interest 150 1,707 1,557 Other 2,595 150 (2,445) 558 Total revenues 46,410 36,824 (9,586) 44,161 Expenditures: Personal services 6,674 1,964 (4,710) - Supplies 7,850 609 (7,241) 873 Other services and charges 30,762 22,149 (8,613) 52,739 Capital outlay - 1,228 1,228 2,795 Total expenditures 45,286 25,950 (19,336) 56,407 Revenues over (under) expenditures 1,124 10,874 9,750 (12,246) Other financing sources: Operating transfers in - - - 500 Net increase (decrease) in fund balance $1,124 10,874 $9,750 (11,746) Fund balance (deficit) - January 1 (11,746) - r Fund balance (deficit) - December 31 ($872) ($11,746) 111 CH 112 CITY OF COLUMBIA HEIGHTS, AMMSOTA 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. 113 CITY OF COLUMBIA HEIGHTS, MINNESOTA DEBT SERVICE FUNDS Statement 38 COMBINING BALANCE SHEET December 31, 1997 With Comparative Totals For December 31, 1996 Tax Tax Increment Increment Tax Refunding Refunding Multi Use Increment Bonds Bonds Redevelopment Totals Bonds of 1991 of 1993 Plan 1997 1996 Assets Cash and investments Taxes: Unremitted Delinquent Interest Due from other funds Total assets Liabilities and Fund Balance Liabilities: Accounts payable Due to other governmental units Due to other funds Deferred revenue: Property taxes - delinquent Total liabilities $1,513,809 $ - $ - $9,625 $1,523,434 $1,687,328 193,648 - - - 193,648 8,364 3,007 - - - 3,007 144,406 9,875 - - - 9,875 11,599 99,416 - - - 99,416 - $1,819,755 $0 $0 $9,625 $1,829,380 $1,851,697 $26,601 $ - $ - 12,774 - - 854,379 - - $10,053 $36,654 $9,625 410 13,184 - 99,416 953,795 854,379 3,007 - - - 3,007 144,406 896,761 0 0 109,879 1,006,640 1,008,410 Fund balance: Unreserved: Designated for debt service 922,994 - - - 922,994 843,287 Undesignated - - - (100,254) (100,254) - Total fund balance 922,994 0 0 (100,254) 822,740 843,287 Total liabilities and fund balance $1,819,755 $0 $0 $9,625 $1,829,380 $1,851,697 114 CITY OF COLUMBIA HEIGHTS, MINNESOTA DEBT SERVICE FUNDS Statement 39 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1997 With Comparative Totals For The Year Ended December 31, 1996 Tax Tax Tax Increment Increment Multi Use Increment Refunding Refunding Redevelopment Totals Bonds Bonds of 1991 Bonds of 1993 Plan 1997 1996 Revenues: Tax increments $1,368,137 $ $ $25,075 $1,393,212 $951,424 Interest 63,373 - 63,373 74,419 Total revenues 1,431,510 0 0 25,075 1,456,585 1,025,843 Expenditures: Debt service: Principal retirement 955,000 200,000 1,155,000 1,155,000 Interest and fiscal charges - 240,978 6,230 - 247,208 304,268 Miscellaneous 51,897 - - 23,027 74,924 16,620 Total expenditures 51,897 1,195,978 206,230 23,027 1,477,132 1,475,888 Revenues over (under) expenditures 1,379,613 (1,195,978) (206,230) 2,048 (20,547) (450,045) Other financing sources (uses): Operating transfers in 102,302 1,195,978 206,230 1,504,510 1,459,268 Operating transfers (out) (1,402,208) - - (102,302) (1,504,510) (1,459,268) Total other financing sources (uses) (1,299,906) 1,195,978 206,230 (102,302) 0 0 Net increase (decrease) in fund balance 79,707 0 0 (100,254) (20,547) (450,045) Fund balance - January 1 843,287 - - - 843-287 1,422,979 Residual equity transfers (129,647) Fund balance - December 31 $922,994 $0 $0 ($100,254) $822,740 $843,287 115 CH 116 CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS Capital Project Funds are maintained to account for the construction of major capital facilities. Project funding consists of a combination of several revenue sources, such as municipal State Aid streets, special assessments, Sewer Utility Fund, other governmental units, State and Federal grants, etc. Capital Improvement Fund 401 - used to account for Capital Project Funds whereby funding is provided by a number of internal and external sources. Water Surface Management Fund 403 - used to account for revenues and expenditures associated with storm sewers and other surface water management. Downtown Parking Maintenance Fund 405 - used for maintenance of the West Side Parking. Medtronic Development Fund 406 - used to account for revenues and expenditures associated with an agreement with Medtronic Corporation related to a major expansion project. TIF District #2 Fund 407 - used to account for revenues and expenditures located within the Tax Increment Financing District #2. Capital Improvement Fund 408 - used for projects involving State Aid streets. Sheffield Redevelopment Fund 410 - used to fund redevelopment of the area of the City identified as Sheffield Neighborhood. Capital Improvement General Government Buildings Fund 411 - used to account for improvements to municipal buildings - library, municipal garage, and City Hall. Capital Improvement Parks Fund 412 - used to account for capital improvements in City parks. Capital Improvement Projects Fund 415 - used to account for projects that will be fully assessed to affected properties. Infrastructure Replacement Fund 430 - used to fund replacement of City infrastructure. Capital Equipment Replacement Fund 431 - used to fund replacement of fixed assets as needed. 117 CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1997 With Comparative Totals For December 31, 1996 Assets Cash and investments Receivables: Accounts Special assessments: Unremitted Delinquent Deferred Interest Loans Due from other governmental units Real estate held for resale Total assets Liabilities and Fund Balance Liabilities: Accounts payable Accrued salaries and withholdings payable Contracts payable - retained percentage Notes payable Due to other governmental units Due to other funds Deferred revenue Deposits Total liabilities Fund balance: Reserved for real estate held for resale Unreserved: Designated for subsequent years' expenditures Designated for abatement Undesignated Total fund balance (deficit) Total liabilities and fund balance 118 459 - - $69,531 $18,788 $43,597 $0 $0 3,866 3,866 $ - $1,098 $352 $2,157 41,709 86 0 1,098 42,061 2,243 65,665 Water Downtown (42,061) Capital Surface Parking Metronic TIF Improvement Management Maintenance Development District #2 Fund 401 Fund 403 Fund 405 Fund 406 Fund 407 $69,531 $18,788 $43,138 $ - $ - 459 - - $69,531 $18,788 $43,597 $0 $0 3,866 3,866 $ - $1,098 $352 $2,157 41,709 86 0 1,098 42,061 2,243 65,665 18,788 42,499 (42,061) (2,243) 65,665 18,788 42,499 (42,061) (2,243) $69,531 $18,788 $43,597 $0 $0 Statement 40 119 Capital Improvement General Capital Capital Capital Capital Sheffield Government Improvement Improvement Infrastructure Equipment Improvement Redevelopment Buildings Parks Projects Replacement Replacement Totals Fund 408 Fund 410 Fund 411 Fund 412 Fund 415 Fund 430 Fund 431 1997 1996 $19,876 $34,476 $101,619 $139,126 $76,783 $820,610 $3,282,455 $4,606,402 $4,706,595 - - _ _ - - - - 18,000 860 - - 860 1,498 54,706 54,706 53,431 - - - - 558,080 - - 558,080 158,269 - - 1,724 1,125 3,084 9,485 31,633 47,510 38,837 t - 6,755 - - - - - 6,755 8,904 _ _ _ _ _ _ _ - 29,493 - 119,600 - - - - - 119,600 170,600 $19,876 $160,831 $103,343 $140,251 $693,513 $830,095 $3,314,088 $5,393,913 $5,185,627 $ - $486 $ - $5,647 $4,850 $2,398 $ - $16,988 $5,342 - - - 3,150 - - 3,150 2,840 = 13 64,793 68,672 3,874 - 537 537 - 897, 916 = = = = 939,711 1,012,011 - - - - 612,786 - - 612,786 211,700 - 1,000 - - - - - 1,000 - 0 899,402 13 5,647 686,116 2,398 0 1,642,844 1,235,767 - 119,600 - - - - - 119,600 170,600 - - 14,232 21,000 - - 153,272 188,504 105,231 - - - - 7,397 - - 7,397 - 19,876 (858,171) 89,098 113,604 - 827,697 3,160,816 3,435,568 3,674,029 19,876 (738,571) 103,330 134,604 7,397 827,697 3,314,088 3,751,069 3,949,860 ■ $19,876 $160,831 $103,343 $140,251 $693,513 $830,095 $3,314,088 $5,393,913 $5,185,627 119 CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1997 With Comparative Totals For The Year Ended December 31, 1996 Revenues: Special assessments Interest Other revenues: Miscellaneous Project reimbursement 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 31 120 Water Downtown Capital Surface Parking Metronic TIF Improvement Management Maintenance Development District #2 Fund 401 Fund 403 Fund 405 Fund 406 Fund 407 2,944 - 0 0 0 2,944 0 83,345 - 5,197 3,905 2,243 (83,345) 0 (2,253) (3,905) (2,243) 80,430 - - - - 80,430 0 0 0 0 (2,915) 0 (2,253) (3,905) (2,243) 68,580 18,788 44,752 (38,156) - $65,665 $18,788 $42,499 ($42,061) ($2,243) Statement 41 I - 79,455 18,466 36,696 1,540,583 298,560 186,673 2,255,123 1,300,351 0 (34,412) (7,399) (29,479) (318,278) (180,684) 20,585 (641,413) (595,032) - 72,192 Capital 50,000 125,000 190,000 517,622 589,068 - Improvement Capital Capital Capital (75,000) (71,692) ' Capital Sheffield Government Improvement Improvement Infrastructure Equipment 442,622 517,376 Improvement Redevelopment Buildings Parks Projects Replacement Replacement Totals (77,656) Fund 408 Fund 410 Fund 411 Fund 412 Fund 415 Fund 430 Fund 431 1997 1996 - $ - $ - $ - $ - $536,143 $ - $ - $536,143 $165,850 ($738,571) 442 11,067 7,217 19,792 60,869 203,008 305,339 249,581 - 11,062 - 4,250 15,312 229,361 _ _ 655,308 57,007 712,315 44,601 - - - 44,601 60,002 _ _ _ - - - 525 0 45,043 11,067 7,217 1,222,305 117,876 207,258 1,613,710 705,319 I - 79,455 18,466 36,696 1,540,583 298,560 186,673 2,255,123 1,300,351 0 (34,412) (7,399) (29,479) (318,278) (180,684) 20,585 (641,413) (595,032) - 72,192 50,000 125,000 190,000 517,622 589,068 - (75,000) (75,000) (71,692) 0 72,192 (75,000) 50,000 0 125,000 190,000 442,622 517,376 0 37,780 (82,399) 20,521 (318,278) (55,684) 210,585 (198,791) (77,656) 19,876 (776,351) 185,729 114,083 325,675 883,381 3,103,503 3,949,860 3,897,869 - _ _ _ _ _ _ - 129,647 $19,876 ($738,571) $103,330 $134,604 $7,397 $827,697 $3,314,088 $3,751,069 $3,949,860 121 CH 122 CITY OF COLUMBIA HEIGHTS, MINNESOTA IENTERPRISE FUNDS The authority for these types of funds is derived from Section 69(b) of the City Charter which allows for Utility or other Public Service Enterprise Funds. 1 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 Utili , 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. 123 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET December 31, 1997 With Comparative Totals For December 31, 1996 Statement 42 Land 45,223 36,586 - 4,360 Totals 86,169 Assets Water Sewer Refuse Liquor 1997 1996 Current assets: 2,878,447 3,403,121 2,890 103,409 6,387,867 6,345,438 Cash and cash equivalents $672,080 $1,659,836 $917,088 $621,191 $3,870,195 $3,904,685 Receivables: 568,127 125,602 - - 693,729 336,944 Accounts 274,432 252,508 298,245 13 825,198 775,926 Interest 9,259 16,370 3,734 7,745 37,108 34,987 Due from other governmental 2,173,719 1,880,121 8,631 163,512 4,225,983 4,011,879 units, current portion - 48,814 11,633 2,251 62,698 120,285 Due from other funds - 728,916 - 169,000 897,916 940,921 Prepayments 566 79 150 795 588 Inventory, at cost 3,671 - - 674,147 677,818 629,466 Total current assets 960,008 2,706,523 1,230,700 1,474,497 6,371,728 6,406,858 Long -term assets: Due from other governmental units, net of current portion - 358,556 - - 358,556 394,756 Total long -term assets 0 358,556 0 0 358,556 394,756 Fixed assets: Land 45,223 36,586 - 4,360 86,169 86,169 Buildings 258,643 55,612 6,000 181,631 501,886 501,307 Improvements other than buildings 2,878,447 3,403,121 2,890 103,409 6,387,867 6,345,438 Machinery and equipment 250,436 475,046 8,208 353,853 1,087,543 1,120,237 Construction in process 568,127 125,602 - - 693,729 336,944 Total 4,000,876 4,095,967 17,098 643,253 8,757,194 8,390,095 Less: Accumulated depreciation 1,827,157 2,215,846 8,467 479,741 4,531,211 4,378,216 Net fixed assets 2,173,719 1,880,121 8,631 163,512 4,225,983 4,011,879 Total assets $3,133,727 $4,945,200 $1,239,331 $1,638,009 $10,956,267 $10,813,493 Liabilities and Fund Equity Current liabilities: Accounts payable $15,150 $19,866 $ - $154,754 $189,770 $292,547 Accrued salaries and withholdings payable 19,661 19,150 - 63,936 102,747 97,331 Contracts payable - retained percentage - 1,362 - - 1,362 1,723 Due to other governmental units 68,933 - - 64,612 133,545 119,346 Deposits 3,744 - - - 3,744 3,744 Total current liabilities 107,488 40,378 0 283,302 431,168 514,691 Fund equity: Contributed capital: Municipal funds 4,198 4,198 - 8,396 8,396 Property owners /customers 272,337 512,397 - 784,734 849,963 Federal funds 453,000 - - - 453,000 453,000 Total contributed capital 729,535 516,595 0 0 1,246,130 1,311,359 Retained earnings: Reserved for capital replacement/construction 820,746 2,304,412 - - 3,125,158 2,750,029 Unreserved 1,475,958 2,083,815 1,239,331 1,354,707 6,153,811 6,237,414 Total retained earnings 2,296,704 4,388,227 1,239,331 1,354,707 9,278,969 8,987,443 Total fund equity 3,026,239 4,904,822 1,239,331 1,354,707 10,525,099 10,298,802 Total liabilities and fund equity $3,133,727 $4,945,200 $1,239,331 $1,638,009 $10,956,267 $10,813,493 124 I CITY OF COLUMBIA HEIGHTS, MINNESOTA ENTERPRISE FUNDS Statement 43 COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1997 ' With Comparative Totals For The Year Ended December 31, 1996 Totals Nonoperating revenues (expenses): Sewer Refuse Liquor 1997 1996 'Water Operating revenues: 59,420 148,886 43,764 49,704 301,774 271,340 Charges for services: - - 62,423 - 62,423 60,172 Customer service $22,295 $ - $ - $ - $22,295 $28,122 ' Penalties 29,510 - - (113,895) 29,510 31,027 Sewer service charges 63,757 1,119,989 129,169 = 1,119,989 1,073,156 Refuse service charges - - 1,336,968 - 1,336,968 1,265,163 Charges for sales: ' Water 1,165,918 - 1,165,918 1,150,159 Meter 5,026 - - - 5,026 4,892 Liquor - - - 1,778,709 1,778,709 1,721,680 Beer - - - 3,131,953 3,131,953 3,078,252 Wine 602,123 602,123 578,362 Other - - - 622,381 622,381 633,613 ' Total operating revenues 1,222,749 1,119,989 1,336,968 6,135,166 9,814,872 9,564,426 Operating expenses: Cost of sales and services 712,368 764,482 1,202,414 - 2,679,264 2,620,734 Distribution 365,443 247,054 - - 612,497 594,629 Administration 10,916 9,919 9,748 30,583 31,239 Recycling - - 23,629 - 23,629 10,832 waste - 3,273 - 3,273 891 'Hazardous Cost of goods sold = 4,878,712 4,878,712 4,774,908 Operating expense - - - 905,854 905,854 835,352 Depreciation 67,459 105,194 1,360 39,325 213,338 219,703 ' Total operating expenses 1,156,186 1,126,649 1,240,424 5,823,891 9,347,150 9,088,288 Net income (loss) from operations 66,563 (6,660) 96,544 311,275 467,722 476,138 Nonoperating revenues (expenses): Interest income 59,420 148,886 43,764 49,704 301,774 271,340 Intergovernmental - - 62,423 - 62,423 60,172 Miscellaneous revenues 16,270 25,298 22,982 8,916 73,466 422,913 Miscellaneous expenses (11,933) (23,905) (113,895) (149,733) (33,011) Total nonoperating revenues (expenses) 63,757 150,279 129,169 (55,275) 287,930 721,414 INet 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 IRetained earnings - December 31 130,320 143,619 225,713 256,000 755,652 1,197,552. 271,855 73,517 - - 345,372 256,685 (354,439) (156,101) (119,218) (244,969) (874,727) (809,970) (82,584) (82,584) (119,218) (244,969) (529,355) (553,285) 47,736 61,035 106,495 11,031 226,297 644,267 26,294 38,935 - - 65,229 65,229 2,222,674 4,288,257 1,132,836 1,343,676 8,987,443 8,277,947 $2,296,704 $4,388,227 $1,239,331 $1,354,707 $9,278,969 $8,987,443 125 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENTERPRISE FUNDS Statement 44 COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 1997 With Comparative Totals For the Year Ended December 31, 1996 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 Totals Water Sewer Refuse Liquor 1997 1996 $1,225,668 $1,232,349 $1,308,967 $6,135,408 $9,902,392 $9,628,000 (848,013) (901,241) (1,239,193) (5,434,139) (8,422,586) (8,054,315) (222,021) (126,210) - (495,077) (843,308) (808,289) 16,270 25,298 85,405 8,916 135,889 176,171 (11,933) (23,905) - (113,895) (149,733) (33,011) 159,971 206,291 155,179 101,213 622,654 908,556 7 1 Cash flows from noncapital financing activities: Operating transfers in from other funds 271,855 73,517 - - 345,372 256,685 Operating transfers (out) to other funds (354,439) (156,101) (119,218) (244,969) (874,727) (809,970) Net cash flows from noncapital financing activities (82,584) (82,584) (119,218) (244,969) (529,355) (553,285) Cash flows from capital and related financing activities: Acquisition of fixed assets Cash flows from investing activities: Interest received on investments Net cash flows from investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues Miscellaneous expenses Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in due from other governmental units (Increase) decrease in due from other funds (Increase) decrease in prepayments (Increase) decrease in inventory, at cost Increase (decrease) in accounts payable Increase (decrease) in accrued salaries and withholdings payable Increase (decrease) in due to other governmental units Increase (decrease) in deposits Total adjustments Net cash flows from operating activities 126 (309,254) (118,188) - - (427,442) (475,104) 59,113 145,110 47,171 48,259 299,653 271,124 59,113 145,110 47,171 48,259 299,653 271,124 (33,011) (172,754) 150,629 83,132 (95,497) (34,490) 151,291 844,834 1,509,207 833,956 716,688 3,904,685 3,753,394 - $672,080 $1,659,836 $917,088 $621,191 $3,870,195 $3,904,685 $66,563 ($6,660) $96,544 $311,275 $467,722 $476,138 16,270 25,298 85,405 8,916 135,889 176,171 (11,933) (23,905) - (113,895) (149,733) (33,011) 67,459 105,194 1,360 39,325 213,338 219,703 2,919 (13,633) (38,645) 87 (49,272) 42,488 - 82,988 10,644 155 93,787 (20,264) - 43,005 - - 43,005 41,350 (338) 13 - 118 (207) 65,934 (1,218) - - (47,134) (48,352) (20,971) 12,795 (8,554) (129) (107,250) (103,138) (1,084) (2,129) 2,545 - 5,000 5,416 13,004 9,583 - - 4,616 14,199 (50,902) 93,408 212,951 58,635 (210,062) 154,932 432,418 $159,971 $206,291 $155,179 $101,213 $622,654 $908,556 CITY OF COLUMBIA HEIGHTS, MINNESOTA 'WATER UTILITY FUND BALANCE SHEET December 31, 1997 With Comparative Totals For December 31, 1996 Statement 45 ' Capital Equipment Capital Operating Replacement Construction Totals Account Account Account 1997 1996 Assets Current assets: ' Cash and cash equivalents $408,508 $201,489 $62,083 $672,080 $844,834 Receivables: Accounts 274,432 - - 274,432 277,351 Interest 6,816 1,889 9,259 8,952 ' Prepayments 566 -554 566 228 Inventory, at cost 3,671 - - 3,671 2,453 ' Total current assets 693,993 203,378 62,637 960,008 1,133,818 Fixed assets: Land 45,223 - - 45,223 45,223 ' Buildings 258,643 - - 258,643 256,171 Improvements other than buildings 2,878,447 2,878,447 2,873,122 Machinery and equipment 250,436 - - 250,436 265,430 ' Construction in process - - 568,127 568,127 278,462 Total fixed assets 3,432,749 0 568,127 4,000,876 3,718,408 Less: accumulated depreciation 1,827,157 - 1,827,157 1,786,484 Net fixed assets 1,605,592 0 568,127 2,173,719 1,931,924 Total assets $2,299,585 $203,378 $630,764 $3,133,727 $3,065,742 Liabilities and Fund Equity Liabilities: Accounts payable $2,200 $ $12,950 $15,150 $2,355 ' Accrued salaries and withholdings payable 19,215 _ 446 19,661 21,790 Due to other governmental units 68,933 - - 68,933 59,350 Deposits 3,744 - - 3,744 3,744 ' Total liabilities 94,092 0 13,396 107,488 87,239 Fund equity: Contributed capital: ' Municipal funds 4,198 4,198 4,198 Property owners 272,337 - - 272,337 298,631 Federal funds 453,000 - - 453,000 453,000 Total contributed capital 729,535 0 0 729,535 755,829 Retained earnings: Reserved for capital replacement/construction - 203,378 617,368 820,746 543,097 Unreserved 1,475,958 1,475,958 1,679,577 Total retained earnings 1,475,958 203,378 617,368 2,296,704 2,222,674 Total fund equity 2,205,493 203,378 617,368 3,026,239 2,978,503 ' Total liabilities and fund equity $2,299,585 $203,378 $630,764 $3,133,727 $3,065,742 127 128 I CITY OF COLUMBIA HEIGHTS MINNESOTA WATER UTILITY FUND STATEMENT OF REVENUES, EXPENSES, AND CHANGES Statement 46 ' IN RETAINED EARNINGS For The Year Ended December 31, 1997 Capital With Comparative Totals For The Year Ended December 31, 1996 , 128 ' Capital Equipment Capital Operating Replacement Construction Totals Account Account Account 1997 1996 Operating revenues: Charges for services: Customer services $22,295 $ - $ - $22,295 $28,122 Penalties 29,510 - - 29,510 31,027 , Charges for sales: Water sales 1,165,918 - - 1,165,918 1,150,159 Meter sales 5,026 - - 5,026 4,892 Total operating revenues 1,222,749 0 0 1,222,749 1,214,200 , Operating expenses: Cost of sales and services 712,368 - - 712,368 701,350 ' Distribution 365,443 - - 365,443 373,734 Administration 10,916 - - 10,916 10,143 Depreciation 67,459 - - 67,459 70,465 ' Total operating expenses 1,156,186 0 0 1,156,186 1,155,692 Net income from operations 66,563 0 0 66,563 58,508 Nonoperating revenues (expenses): Interest income 43,740 12,123 3,557 59,420 57,433 ' Miscellaneous revenues 520 - 15,750 16,270 15,484 Miscellaneous expenses (7) - (11,926) (11,933) (487) Total nonoperating revenues (expenses) 44,253 12,123 7,381 63,757 72,430 ' Net income before operating transfers 110,816 12,123 7,381 130,320 130,938 Operating transfers: Operating transfers in 6,855 15,000 250,000 271,855 49,283 Operating transfers (out) (347,584) - (6,855) (354,439) (129,538) , Total operating transfers (340,729) 15,000 243,145 (82,584) (80,255) Net income (229,913) 27,123 250,526 47,736 50,683 Credit for depreciation on contributed assets 26,294 - - 26,294 26,294 Retained earnings - January 1 1,679,577 176,255 366,842 2,222,674 2,145,697 ' Retained earnings - December 31 $1,475,958 $203,378 $617,368 $2,296,704 $2,222,674 . 128 CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UTILITY FUND Statement 47 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1997 With Comparative Amounts For the Year Ended December 31, 1996 Cash flows from operating activities: Cash received from customers ' Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues ' Miscellaneous expenses Net cash flows from operating activities Cash flows from noncapital financing activities: Operating transfers in Operating transfers (out) Net cash flows from noncapital financing activities ' Cash flows from capital and related financing activities: Acquisition of fixed assets Cash flows from investing activities: Interest received on investments ' Net cash flows from investing activities i Aran Y nn-, $1,225,668 $1,212,255 (848,013) (859,417) (222,021) (218,799) 16,270 15,484 (11,933) (487) 159,971 149,036 271,855 49,283 (354,439) (129,538) (82,584) (80,255) Cash and cash equivalents - December 31 (309,254) (312,020) Reconciliation of operating income to 59,113 58,401 59,113 58,401 Net increase in cash and cash equivalents (172,754) (184,838) iCash and cash equivalents - January 1 844,834 1,029,672 Cash and cash equivalents - December 31 $672,080 $844,834 Reconciliation of operating income to Net cash flows from operating activities Operating income $66,563 $58,508 Adjustments to reconcile operating income to net cash flows from operating activities: Miscellaneous revenues 16,270 15,484 ' Miscellaneous expenses (11,933) (487) Depreciation expense 67,459 70,465 Changes in assets and liabilities: (Increase) decrease in accounts receivable 2,919 (1,945) (Increase) decrease in prepayments (338) (45) (Increase) decrease in inventory, at cost (1,218) (219) ' Increase (decrease) in accounts payable 12,795 (1,407) Increase (decrease) in accrued salaries and withholdings payable (2,129) 3,438 Increase (decrease) in due to other governmental units 9,583 5,244 ' Total adjustments 93,408 90,528 Net cash flows from operating activities $159,971 $149,036 129 CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND BALANCE SHEET December 31, 1997 With Comparative Totals For December 31, 1996 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 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 130 Statement 48 1 Capital Equipment Capital Operating Replacement Construction Totals Account Account Account 1997 1996 fl $206,816 $275,302 $1,177,718 $1,659,836 $1,509,207 , 252,508 - - 252,508 238,875 1,830 2,539 12,001 16,370 12,594 48,814 - - 48,814 95,602 - - 728,916 728,916 771,921 79 - - 79 92 510,047 277,841 1,918,635 2,706,523 2,628,291 , 358,556 394,756 a 358,556 - - 36,586 - - 36,586 36,586 ' 55,612 - - 55,612 56,455 3,403,121 - - 3,403,121 3,364,888 475,046 - - 475,046 480,899 - - 125,602 125,602 58,482 3,970,365 0 125,602 4,095,967 3,997,310 2,215,846 - - 2,215,846 2,130,183 ' 1,754,519 0 125,602 1,880,121 1,867,127 $2,623,122 $277,841 $2,044,237 $4,945,200 $4,890,174 $3,611 $ - $16,255 $19,866 $28,059 19,101 - 49 19,150 16,605 - - 1,362 1,362 1,723 22,712 0 17,666 40,378 46,387 , 4,198 - - 4,198 4,198 , 512,397 - - 512,397 551,332 516,595 - - 516,595 555,530 - 277,841 2,026,571 2,304,412 2,206,932 , 2,083,815 - - 2,083,815 2,081,325 2,083,815 277,841 2,026,571 4,388,227 4,288,257 2,600,410 277,841 2,026,571 4,904,822 4,843,787 $2,623,122 $277,841 $2,044,237 $4,945,200 $4,890,174 CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND Statement 49 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1997 With Comparative Totals For The Year Ended December 31, 1996 Operating revenues: Charges for sales and services: Sewer service charges ' Operating expenses: Cost of sales and services Distribution Administration Depreciation Total operating expenses INet income from operations Nonoperating revenues (expenses) Capital Equipment Capital Operating Replacement Construction Account Account Account Totals 1997 1996 $1,119,989 $ - $ - $1,119,989 $1,073,156 105,054 764,482 - - 764,482 749,114 247,054 - - 247,054 220,895 9,919 - - 9,919 10,038 105,194 - - 105,194 102,026 1,126,649 0 0 1,126,649 1,082,073 48,282 (6,660) 0 0 (6,660) (8,917) Interest income 27,535 16,297 105,054 148,886 127,678 Miscellaneous revenues 20,754 - 4,544 25,298 401,275 Miscellaneous expenses (7) - (23,898) (23,905) (32,524) Total nonoperating revenues (expenses) 48,282 16,297 85,700 150,279 496,429 Net income before operating transfer 41,622 16,297 85,700 143,619 487,512 Operating transfers: Operating transfers in 39,017 25,000 9,500 73,517 207,402 Operating transfers (out) (117,084) - (39,017) (156,101) (287,657) Total operating transfers (78,067) 25,000 (29,517) (82,584) (80,255) Net income (loss) (36,445) 41,297 56,183 61,035 407,257 Credit for depreciation on contributed assets 38,935 - - 38,935 38,935 Retained earnings - January 1 2,081,325 236,544 1,970,388 4,288,257 3,842,065 Retained earnings - December 31 $2,083,815 $277,841 $2,026,571 $4,388,227 $4,288,257 131 CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1997 With Comparative Amounts For the Year Ended December 31, 1996 Statement 50 1997 1996 Cash flows from operating activities: Cash received from customers $1,232,349 $1,097,589 Cash paid to suppliers for goods and services (901,241) (824,070) Cash payments to employees for services (126,210) (111,279) Miscellaneous revenues 25,298 94,361 Miscellaneous expenses (23,905) (32,524) Net cash flows from operating activities 206,291 224,077 Cash flows from noncapital financing activities: , Operating transfers in 73,517 207,402 Operating transfers (out) (156,101) (287,657) Net cash flows from noncapital financing activities (82,584) (80,255) Cash flows from capital and related financing activities: Acquisition of fixed assets (118,188) (152,556) , Cash flows from investing activities: Interest received on investments 145,110 127,758 Net cash flows from investing activities 145,110 127,758 ' Net increase in cash and cash equivalents 150,629 119,024 Cash and cash equivalents - January 1 1,509,207 1,390,183 Cash and cash equivalents - December 31 $1,659,836 $1,509,207 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) ($6,660) ($8,917) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues 25,298 94,361 Miscellaneous expenses (23,905) (32,524) Depreciation expense 105,194 102,026 Changes in assets and liabilities: (Increase) decrease in accounts receivable (13,633) 18,827 ' (Increase) decrease in due from other governmental units 82,988 (35,744) (Increase) decrease in due from other funds 43,005 41,350 (Increase) decrease in prepayments 13 66,247 Increase (decrease) in accounts payable (8,554) 28,365 Increase (decrease) in accrued salaries and withholdings payable 2,545 . 2,835 Increase (decrease) in due to other governmental units - (52,749) Total adjustments 212,951 232,994 Net cash flows from operating activities $206,291 $224,077 132 , CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND BALANCE SHEET December 31, 1997 With Comparative Amounts For December 31, 1996 Statement 51 1997 1996 ' Assets Current assets: Cash and cash equivalents $917,088 $833,956 Receivables: Accounts 298,245 259,600 Interest 3,734 7,141 Due from other governmental units 11,633 22,277 Total current assets 1,230,700 1,122,974 Fixed assets: Buildings 6,000 6,000 Improvements other than buildings 2,890 2,890 Machinery and equipment 8,208 8,208 Total fixed assets 17,098 17,098 Less: accumulated depreciation 8,467 7,107 Net fixed assets 8,631 9,991 Total assets $1,239,331 $1,132,965 Liabilities and Fund Equity Current liabilities: ' Accounts payable $ - $129 Total liabilities 0 129 Fund equity: Retained earnings: Unreserved 1,239,331 1,132,836 Total liabilities and fund equity $1,239,331 $1,132,965 133 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND Statement 52 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1997 With Comparative Amounts For The Year Ended December 31, 1996 Operating revenues: Refuse service charges $1,336,968 $1,265,163 Operating expenses: Cost of sales and services 1,202,414 1,170,270 Administration 9,748 11,058 Recycling 23,629 10,832 Hazardous waste 3,273 891 Depreciation 1,360 1,570 Total operating expenses 1,240,424 1,194,621 Net income from operations 96,544 70,542 Nonoperating revenues: Interest income 43,764 45,814 Intergovernmental 62,423 60,172 Miscellaneous revenues 22,982 551 Total nonoperating revenues 129,169 106,537 Net income before operating transfers 225,713 177,079 Operating transfers: Operating transfers (out) (119,218) (107,454) Net income 106,495 69,625 Retained earnings - January 1 1,132,836 1,063,211 Retained earnings - December 31 $1,239,331 $1,132,836 134 I CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1997 With Comparative Amounts For the Year Ended December 31, 1996 Statement 53 1 135 1997 1996 Cash flows from operating activities: Cash received from customers $1,308,967 $1,306,207 Cash paid to suppliers for goods and services (1,239,193) (1,192,799) Cash payments to employees for services - (154) ' Miscellaneous revenues 85,405 60,723 Net cash flows from operating activities 155,179 173,977 ' Cash flows from noncapital financing activities: Operating transfers (out) (119,218) (107,454) Cash flows from capital and related financing activities: Acquisition of fixed assets - (6,670) ' Cash flows from investing activities: Interest received on investments 47,171 45,437 Net cash flows from investing activities 47,171 45,437 tNet increase in cash and cash equivalents 83,132 105,290 ' Cash and cash equivalents - January 1 833,956 728,666 Cash and cash equivalents - December 31 $917,088 $833,956 Reconciliation of operating income to Net cash flows from operating activities ' Operating income $96,544 $70,542 Adjustments to reconcile operating income to net cash flows from operating activities: Miscellaneous revenues 85,405 60,723 Depreciation expense 1,360 1,570 Changes in assets and liabilities: (Increase) decrease in accounts receivable (38,645) 25,706 (Increase) decrease in due from other governmental units 10,644 15,338 Increase (decrease) in accounts payable (129) 98 Total adjustments 58,635 103,435 Net cash flows from operating activities $155,179 $173,977 1 135 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND Statement 54 BALANCE SHEET December 31, 1997 With Comparative Amounts For December 31, 1996 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 136 $621,191 $716,688 13 100 7,745 6,300 2,251 2,406 169,000 169,000 150 268 674,147 627,013 1,474,497 1,521,775 4,360 4,360 181,631 182,681 103,409 104,538 353,853 365,700 643,253 657,279 479,741 454,442 163,512 202,837 $1,638,009 $1,724,612 $154,754 $262,004 63,936 58,936 64,612 59,996 1,354,707 1,343,676 $1,638,009 $1,724,612 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND Statement 55 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS 'For The Year Ended December 31, 1997 With Comparative Totals For The Year Ended December 31, 1996 ' Operating revenues: Charges for sales: Liquor ' Beer Wine Other Total operating revenues Operating expenses: Cost of goods sold Operating expense Depreciation Total operating expenses ' Net income from operations ' Nonoperating revenues (expenses) Interest income Miscellaneous revenues Miscellaneous expenses Total nonoperating revenues (expenses) Net income before operating transfers Operating transfers: Operating transfers (out) Total operating transfers Net income (loss) Retained earnings - January 1 Retained earnings - December 31 49,704 40,415 8,916 5,603 (113,895) - (55,275) 46,018 256,000 402,023 (244,969) (285,321) (244,969) (285,321) 11,031 116,702 1,343,676 1,226,974 $1,354,707 $1,343,676 137 Top Heights Totals Top Valu Valu 1I Liquor 1997 1996 $930,758 $488,039 $359,912 $1,778,709 $1,721,680 1,449,395 916,305 766,253 3,131,953 3,078,252 338,433 199,164 64,526 602,123 578,362 340,268 158,800 123,313 622,381 633,613 3,058,854 1,762,308 1,314,004 6,135,166 6,011,907 2,461,737 1,411,812 1,005,163 4,878,712 4,774,908 517,426 239,430 148,998 905,854 835,352 11,689 18,816 8,820 39,325 45,642 2,990,852 1,670,058 1,162,981 5,823,891 5,655,902 $68,002 $92,250 $151,023 311,275 356,005 49,704 40,415 8,916 5,603 (113,895) - (55,275) 46,018 256,000 402,023 (244,969) (285,321) (244,969) (285,321) 11,031 116,702 1,343,676 1,226,974 $1,354,707 $1,343,676 137 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND Statement 56 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1997 With Comparative Amounts For the Year Ended December 31, 1996 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 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 138 1997 1996 $6,135,408 $6,011,949 (5,434,139) (5,178,029) (495,077) (478,057) 8,916 5,603 (113,895) - 101,213 361,466 4,616 (244,969) (285,321) (244,969) (285,321) $361,466 - (3,858) 48,259 39,528 48,259 39,528 (95,497) 111,815 716,688 604,873 $621,191 $716,688 $311,275 $356,005 8,916 5,603 (113,895) - 39,325 45,642 87 (100) 155 142 118 (268) (47,134) (20,752) (107,250) (28,140) 5,000 6,731 4,616 (3,397) (210,062) 5,461 $101,213 $361,466 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. 139 140 1 CITY OF COLUMBIA HEIGHTS MINNESOTA INTERNAL SERVICE FUNDS Statement 57 COMBINING BALANCE SHEET December 31, 1997 With Comparative Totals For December 31, 1996 Central Energy Data Compensated Totals Garage Management Processing Insurance Absences 1997 1996 Assets Current assets: Cash and cash equivalents $235,118 $712 $86,862 $998,104 $501,310 $1,822,106 $1,757,271 , Receivables: Accounts 75 - - 255 - 330 228 Interest 2,207 - - 11,140 4,893 18,240 14,729 Prepayments 324 10,582 149 52,275 - 63,330 27,967 ' Inventory, at cost 70,218 - - - 70,218 85,454 Total current assets 307,942 11,294 87,011 1,061,774 506,203 1,974,224 1,885,649 Fixed assets: Buildings 351,507 395,871 - - - 747,378 748,016 Improvements other than buildings 121,550 314,910 - - - 436,460 436,460 Machinery and equipment 92,810 - 70,587 - - 163,397 171,484 Total fixed assets 565,867 710,781 70,587 0 0 1,347,235 1,355,960 Less: accumulated depreciation 281,909 507,660 47,157 - - 836,726 705,424 Net fixed assets 283,958 203,121 23,430 0 0 510,509 650,536 ' Total assets $591,900 $214,415 $110,441 $1,061,774 $506,203 $2,484,733 $2,536,185 Liabilities and Fund Equity Current liabilities: Accounts payable $12,250 $26,131 $772 $7,719 $ - $46,872 $31,970 Accrued salaries and withholdings payable 18,364 - 7,893 - 26,257 488,243 , Capital lease payable current - 108,910 - - - 108,910 104,124 Accrued interest payable - 1,743 - - - 1,743 2,387 Total current liabilities 30,614 136,784 8,665 7,719 0 183,782 626,724 Long -term liabilities: Compensated absences payable - - - - 471,224 471,224 - Capital lease payable net of current - 172,822 - - - 172,822 281,732 , Total liabilities 30,614 309,606 8,665 7,719 471,224 827,828 908,456 Fund equity: , Contributed capital: Municipal funds 124,196 - - - - 124,196 124,196 Property owners 64,653 - - - 64,653 64,653 Total contributed capital 188,849 0 0 0 0 188,849 188,849 , Retained earnings: Reserved for insurance - - - 1,054,055 - 1,054,055 1,085,726 Reserved for capital improvements 31,355 - - - 31,355 34,020 , Unreserved 341,082 (95,191) 101,776 - 34,979 382,646 319,134 Total retained earnings 372,437 (95,191) 101,776 1,054,055 34,979 1,468,056 1,438,880 Total fund equity 561,286 (95,191) 101,776 1,054,055 34,979 1,656,905 1,627,729 Total liabilities and fund equity $591,900 $214,415 $110,441 $1,061,774 $506,203 $2,484,733 $2,536,185 140 1 I CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS Statement 58 COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1997 IWith Comparative Totals For The Year Ended December 31, 1996 Nonoperating revenues (expenses): Central Energy Data Compensated Totals 1 Garage Management Processing Insurance Absences 1997 1996 Operating revenues: Miscellaneous revenues 3,634 150 169 - 3,953 Charges for services: Interest expense - (15,722) - - - (15,722) Services to departments $122,752 $210,783 $ $ - $ - $333,535 $362,704 Use of space 156,575 42,510 _ (120,095) (31,671) 156,575 140,425 Insurance allocation - - - 313,501 - 313,501 375,844 Recovery of damages - 13,011 - 12,398 - 12,398 41,707 Charges for sales: Operating transfers (out) (32,511) - - - - (32,511) Sales of gasoline 54,611 (19,500) 105,000 128,500 0 54,611 60,146 Total operating revenues 333,938 210,783 0 325,899 0 870,620 980,826 Operating expenses: Retained earnings - January 1 349,427 (93,224) 93,371 1,085,726 3,580 1,438,880 Cost of services and space 275,443 200,658 98,431 212,414 $1,054,055 786,946 1,357,178 Claims administration - - - 135,061 - 135,061 85,489 Claims - - 81,206 - 81,206 4,237 Insurance deductible = 379 379 828 Depreciation 33,778 101,520 21,833 - - 157,131 152,291 Total operating expenses 309,221 302,178 120,264 429,060 0 1,160,723 1,600,023 rNet income (loss) from operations 24,717 (91,395) (120,264) (103,161) 0 (290,103) (619,197) Nonoperating revenues (expenses): Interest income 14,159 71,490 31,399 117,048 94,494 Miscellaneous revenues 3,634 150 169 - 3,953 4,959 Interest expense - (15,722) - - - (15,722) (20,327) Total nonoperating revenues (expenses) 17,793 (15,572) 169 71,490 31,399 105,279 79,126 Net income (loss) before operating transfers 42,510 (106,967) (120,095) (31,671) 31,399 (184,824) (540,071) Operating transfers: Operating transfers in 13,011 105,000 128,500 246,511 226,506 Operating transfers (out) (32,511) - - - - (32,511) (46,608) Total operating transfers (19,500) 105,000 128,500 0 0 214,000 179,898 Net income (loss) 23,010 (1,967) 8,405 (31,671) 31,399 29,176 (360,173) Retained earnings - January 1 349,427 (93,224) 93,371 1,085,726 3,580 1,438,880 1,799,053 Retained earnings - December 31 1 $372,437 ($95,191) $101,776 $1,054,055 $34,979 $1,468,056 $1,438,880 141 Cash flows from noncapital financing activities Operating transfers in 13,011 105,000 128,500 Operating transfers (out) (32,511) 113,537 - CITY OF COLUMBIA HEIGHTS, MINNESOTA (19,500) 105,000 128,500 Cash flows from capital and related financing activities: 712 Net increase (decrease) in cash and cash equivalents INTERNAL SERVICE FUNDS (9,011) - (8,093) Interest expense Statement 59 COMBINING STATEMENT OF CASH FLOWS 168,924 - 56,070 and related financing activities (9,011) (15,722) (8,093) For The Year Ended December 31, 1997 December 31 $235,118 $712 $86,862 $998,104 $501,310 $1,822,106 With Comparative Totals For the Year Ended December 31, 1996 Cash and cash equivalents - Reconciliation of operating income (loss) to Net cash flows from operating activities Central Energy Data Compensated Totals $24,717 ($91,395) Garage Management Processing Insurance Absences 1997 1996 Adjustments to reconcile operating income (loss) to net Cash flows from operating activities: ' Cash received from customers $333,907 $210,783 $ - $325,828 $ - $870,518 $980,812 Cash paid to suppliers for goods and services (124,592) (299,499) (29,117) (466,907) 8,347 (911,768) (909,530) 3,953 Cash payments to employees for services (131,912) - (60,667) - (192,579) (170,809) - Miscellaneous revenues 3,634 150 169 - - 3,953 4,959 Net cash flows from operating activities 81,037 (88,566) (89,615) (141,079) 8,347 (229,876) (94,568) - Cash flows from noncapital financing activities Operating transfers in 13,011 105,000 128,500 Operating transfers (out) (32,511) 113,537 - Net cash flows from noncapital financing activities (19,500) 105,000 128,500 Cash flows from capital and related financing activities: 712 Net increase (decrease) in cash and cash equivalents Acquisition of fixed assets (9,011) - (8,093) Interest expense (15,722) Net cash flows from capital 168,924 - 56,070 and related financing activities (9,011) (15,722) (8,093) Cash flows from investing activities: 246,511 226,506 ' (32,511) (46,608) 0 0 214,000 179,898 (17,104) (78,565) (15,722) (20,327) 0 0 (32,826) (98,892) 1 u Interest earned on investments 13,668 66,194 - 69,783 (71,296) 30,086 113,537 94,426 80,864 ' 64,835 38,433 30,792 712 Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - January 1 168,924 - 56,070 1,069,400 462,877 1,757,271 1,676,407 December 31 $235,118 $712 $86,862 $998,104 $501,310 $1,822,106 $1,757,271 Cash and cash equivalents - Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) $24,717 ($91,395) ($120,264) ($103,161) $ ($290,103) ($619,197) Adjustments to reconcile operating income (loss) to net , cash flows from operating activities: Miscellaneous revenues 3,634 150 169 - 3,953 4,959 Depreciation expense 33,778 101,520 21,833 - 157,131 152,291 Changes in assets and liabilities: (Increase) decrease in accounts receivable (31) - - (71) - (102) (44) (Increase) decrease in due from other governmental units - - - - 30 (Increase) decrease in prepayments - (338) 2,647 (37,672) (35,363) 28,300 (Increase) decrease in inventory, at cost 15,236 - - - 15,236 977 Increase (decrease) in accounts payable 8,040 6,265 772 (175) 14,902 (28,121) Increase (decrease) in accrued salaries and withholdings payable (4,337) - 5,228 - 8,347 9,238 466,400 Increase (decrease) in capital lease payable (104,124) - - (104,124) (99,548) Increase (decrease) in accrued interest payable - (644) - - (644) (615) Total adjustments 56,320 2,829 30,649 (37,918) 8,347 60,227 524,629 Net cash flows from operating activities $81,037 ($88,566) ($89,615) ($141,079) $8,347 ($229,876) ($94,568) , 142 1 I CITY OF COLUMBIA HEIGHTS, MINNESOTA CENTRAL GARAGE FUND BALANCE SHEET December 31, 1997 With Comparative Totals For December 31, 1996 IAssets 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 ILiabilities and Fund Equity Current liabilities: Accounts payable Accrued salaries and withholdings payable Total liabilities iFund 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 Statement 60 Capital Equipment Operating Replacement Totals Account Account 1997 1996 $195,118 $40,000 $235,118 $168,924 75 - 75 44 1,841 366 2,207 1,716 324 - 324 324 70,218 - 70,218 85,454 267,576 40,366 307,942 256,462 - 351,507 - 351,507 352,145 121,550 - 121,550 121,550 92,810 - 92,810 103,253 565,867 0 565,867 576,948 281,909 - 281,909 268,223 283,958 0 283,958 308,725 $551,534 $40,366 $591,900 $565,187 $3,239 $9,011 $12,250 $4,210 18,364 - 18,364 22,701 21,603 9,011 30,614 26,911 124,196 - 124,196 124,196 64,653 - 64,653 64,653 188,849 0 188,849 188,849 - 31,355 31,355 34,020 341,082 - 341,082 315,407 341,082 31,355 372,437 349,427 529,931 31,355 561,286 538,276 $551,534 $40,366 $591,900 $565,187 143 CITY OF COLUMBIA HEIGHTS, MINNESOTA CENTRAL GARAGE FUND Statement 61 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1997 With Comparative Totals For The Year Ended December 31, 1996 Capital Equipment Operating Replacement Totals 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 31 144 $122,752 $ - $122,752 $111,065 156,575 - 156,575 140,425 54,611 - 54,611 60,146 275,443 - 275,443 255,698 33,778 - 33,778 31,367 309,221 0 309,221 287,065 24,717 0 24,717 24,571 11,813 2,346 14,159 11,009 3,634 - 3,634 4,959 15,447 2,346 17,793 15,968 40,164 2,346 42,510 40,539 9,011 4,000 13,011 28,608 (23,500) (9,011) (32,511) (46,608) (14,489) (5,011) (19,500) (18,000) 25,675 (2,665) 23,010 22,539 315,407 34,020 349,427 326,888 $341,082 $31,355 $372,437 $349,427 I CITY OF COLUMBIA HEIGHTS, MINNESOTA CENTRAL GARAGE FUND Statement 62 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1997 With Comparative Amounts For the Year Ended December 31, 1996 ICash and cash equivalents - January 1 Cash and cash equivalents - December 31 ' Reconciliation of operating income to Net cash flows from operating activities rOperating income Adjustments to reconcile operating income to net cash flows from operating activities: Miscellaneous revenues ' Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in prepayments (Increase) decrease in inventory, at cost Increase (decrease) in accounts payable Increase (decrease) in accrued salaries and withholdings payable Total adjustments Net cash flows from operating activities r 168,924 170,444 $235,118 $168,924 $24,717 $24,571 3,634 1997 1996 Cash flows from operating activities: (31) (44) Cash received from customers $333,907 $311,592 Cash paid to suppliers for goods and services (124,592) (129,571) Cash payments to employees for services (131,912) (121,219) Miscellaneous revenues 3,634 4,959 Net cash flows from operating activities 81,037 65,761 Cash flows from noncapital financing activities: Operating transfers in 13,011 28,608 Operating transfers (out) (32,511) (46,608) Net cash flows from noncapital financing activities (19,500) (18,000) Cash flows from capital and related financing activities: Acquisition of fixed assets (9,011) (60,108) Cash flows from investing activities: Interest earned on investments 13,668 10,827 ' Net increase in cash and cash equivalents 66,194 (1,520) ICash and cash equivalents - January 1 Cash and cash equivalents - December 31 ' Reconciliation of operating income to Net cash flows from operating activities rOperating income Adjustments to reconcile operating income to net cash flows from operating activities: Miscellaneous revenues ' Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in prepayments (Increase) decrease in inventory, at cost Increase (decrease) in accounts payable Increase (decrease) in accrued salaries and withholdings payable Total adjustments Net cash flows from operating activities r 168,924 170,444 $235,118 $168,924 $24,717 $24,571 3,634 4,959 33,778 31,367 (31) (44) - 52 15,236 977 8,040 1,109 (4,337) 2,770 56,320 41,190 $81,037 $65,761 145 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENERGY MANAGEMENT FUND Statement 63 BALANCE SHEET December 31, 1997 With Comparative Amounts For December 31, 1996 Assets Current assets: Cash and cash equivalents Prepayments Total current assets Fixed assets: Buildings Improvements other than buildings Total fixed assets Less: accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Capital lease payable current Accrued interest payable Total current liabilities Long -term liabilities: Capital lease payable net of current Total liabilities Retained earnings: Unreserved Total liabilities and fund equity 146 1997 1996 $712 $ - 10,582 10,244 395,871 395,871 314,910 314,910 710,781 710,781 $214,415 $314,885 $26,131 $19,866 108,910 104,124 1,743 2,387 136,784 126,377 172,822 281,732 309,606 408,109 (95,191) (93,224) $214,415 $314,885 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENERGY MANAGEMENT FUND Statement 64 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1997 With Comparative Amounts For The Year Ended December 31, 1996 1 147 1997 1996 Operating revenues: Charges for services: Services to departments $210,783 $202,657 Total operating revenues 210,783 202,657 Operating expenses: Cost of services and space 200,658 207,166 Depreciation 101,520 101,520 Total operating expenses 302,178 308,686 Net income (loss) from operations (91,395) (106,029) Nonoperating revenues (expenses): ' Miscelleaneous revenues 150 - Interest expense (15,722) (20,327) Total nonoperating revenues (15,572) (20,327) Net income (loss) before operating transfers (106,967) (126,356) Operating transfers: ' Operating transfers in 105,000 94,898 Net income (loss) (1,967) (31,458) Retained earnings - January 1 (93,224) (61,766) Retained earnings - December 31 ($95,191) ($93,224) 1 147 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENERGY MANAGEMENT FUND Statement 65 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1997 With Comparative Amounts For the Year Ended December 31, 1996 Cash flows from operating activities: Cash received from customers Cash paid to suppliers for goods and services Miscellaneous revenues Net cash flows from operating activities Cash flows from noncapital financing activities: Operating transfers in Cash flows from capital and related financing activities: Interest expense Net cash flows from capital and related financing activities Cash flows from investing activities: Interest earned on investments Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues Depreciation expense Changes in assets and liabilities: (Increase) decrease in prepayments Increase (decrease) in accounts payable Increase (decrease) in capital lease payable Increase (decrease) in accrued interest payable Total adjustments Net cash flows from operating activities .• 1997 $210,783 (299,499) 150 (88,566) 105,000 (15,722) (15,722) 712 $712 1996 $202,657 (306,364) (103,707) 94,898 (20,327) (20,327) 268 (28,868) 28,868 $0 ($91,395) ($106,029) 150 101,520 (338) 6,265 (104,124) (644) 2,829 ($88,566) 101,520 (362) 1,327 (99,548) (615) 2,322 ($103,707) CITY OF COLUMBIA HEIGHTS, MINNESOTA DATA PROCESSING FUND Statement 66 BALANCE SHEET December 31, 1997 With Comparative Amounts For December 31, 1996 1997 1996 Assets Current assets: Cash and cash equivalents $86,862 $56,070 Prepayments 149 2,796 Total current assets 87,011 58,866 Fixed assets: Machinery and equipment 70,587 68,231 Total fixed assets 70,587 68,231 Less: accumulated depreciation 47,157 31,061 Net fixed assets 23,430 37,170 ' Total assets $110,441 $96,036 Liabilities and Fund Equity Current liabilities: Accounts payable $772 $ - Accrued salaries and withholdings payable 7,893 2,665' Total liabilities 8,665 2,665 Retained earnings: 1 Unreserved 101,776 93,371 Total liabilities and fund equity $110,441 $96,036 M, % CITY OF COLUMBIA HEIGHTS, MINNESOTA DATA PROCESSING FUND Statement 67 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1997 With Comparative Amounts For The Year Ended December 31, 1996 Operating revenues Operating expenses: Cost of services Depreciation Total operating expenses Net income (loss) from operations Nonoperating revenues (expenses): Miscellaneous revenues Operating transfers: Operating transfers in Net income Retained earnings - January 1 Retained earnings - December 31 150 1997 98,431 21,833 120,264 (120,264) 169 128,500 8,405 93,371 $101,776 1996 57,806 19,404 77,210 (77,210) 103,000 25,790 67,581 $93,371 I CITY OF COLUMBIA HEIGHTS, MINNESOTA DATA PROCESSING FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1997 With Comparative Amounts For The Year Ended December 31, 1996 Cash flows from operating activities: 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 Cash flows from capital and related financing activities: Acquisition of fixed assets Cash flows from investing activities: Interest earned on investments Net increase in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues Depreciation expense Changes in assets and liabilities: (Increase) decrease in prepayments Increase (decrease) in accounts payable Increase (decrease) in accrued salaries and withholdings payable Total adjustments Net cash flows from operating activities r 1997 ($29,117) (60,667) 169 (89,615) 128,500 Statement 68 1996 ($13,635) (46,618) (60,253) 103,000 (8,093) (18,457) 30,792 47 24,337 56,070 31,733 $86,862 $56,070 ($120,264) ($77,210) 169 - 21,833 19,404 2,647 (2,796) 772 (404) 5,228 753 30,649 16,957 ($89,615) ($60,253) 151 CITY OF COLUMBIA HEIGHTS, MINNESOTA INSURANCE FUND Statement 69 BALANCE SHEET December 31, 1997 With Comparative Amounts For December 31, 1996 Assets Current assets: Cash and cash equivalents Receivables: Accounts Interest Prepayments Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Fund equity: Retained earnings: Reserved for insurance Total liabilities and fund equity 152 $998,104 $1,069,400 255 184 11,140 9,433 52,275 14,603 $1,061,774 $1,093,620 $7,719 $7,894 1,054,055 1,085,726 $1,061,774 $1,093,620 I CITY OF COLUMBIA HEIGHTS, MINNESOTA INSURANCE FUND Statement 70 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1997 With Comparative Amounts For The Year Ended December 31, 1996 Operating revenues: Insurance allocation Recovery of damages Total operating revenues Operating expenses: Insurance premiums Claims administration Claims Insurance deductible Total operating expenses Net income (loss) from operations Nonoperating revenues: Interest income Total nonoperating revenues Net income (loss) Retained earnings - January 1 Retained earnings - December 31 1997 1996 $313,501 $375,844 12,398 41,707 325,899 417,551 212,414 370,659 135,061 85,489 81,206 4,237 379 828 429,060 461,213 (103,161) (43,662) 71,490 60,518 71,490 60,518 (31,671) 16,856 1,085,726 $1,054,055 1,068,870 $1,085,726 153 CITY OF COLUMBIA HEIGHTS, MINNESOTA INSURANCE FUND Statement 71 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1997 With Comparative Amounts For the Year Ended December 31, 1996 Cash flows from operating activities: Cash received from damages Cash paid to suppliers for goods and 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 to Net cash flows from operating activities Operating income Adjustments to reconcile operating income to net cash flows from operating activities: 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 154 1997 $325,828 (466,907) (141,079) 69,783 (71,296) 1,069,400 $998,104 1996 $417,581 (459,960) (42,379) 60,338 17,959 1,051,441 $1,069,400 ($103,161) ($43,662) (71) (37,672) (175) (37,918) ($141,079) 30 31,406 (30,153) 1,283 ($42,379) CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPENSATED ABSENCES FUND Statement 72 1 BALANCE SHEET December 31, 1997 With Comparative Amounts For December 31, 1996 1997 1996 Assets Current assets: Cash and cash equivalents $501,310 $462,877 Interest receivable 4,893 3,580 Total assets $506,203 $466,457 Liabilities and Fund Equity Long -term liabilities: Compensated absences payable 471,224 462,877 Total liabilities 471,224 462,877 Retained earnings: Unreserved 34,979 3,580 Total liabilities and fund equity $506,203 $466,457 155 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPENSATED ABSENCES FUND Statement 73 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1997 With Comparative Amounts For The Year Ended December 31, 1996 Operating revenues: Charges for services Operating expenses: Cost of services Net income (loss) from operations Nonoperating revenues (expenses): Interest Net income Retained earnings - January 1 Retained earnings - December 31 156 1997 1996 $ - $48,982 - 465,849 0 (416,867) 31,399 31,399 3,580 $34,979 22,967 (393,900) $3,580 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPENSATED ABSENCES FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1997 With Comparative Amounts For The Year Ended December 31, 1996 Statement 74 1997 1996 Cash flows from operating activities: Cash received from customers $ - $48,982 Cash payments to employees for services 8,347 (2,972) Net cash flows from operating activities 8,347 46,010 Cash flows from investing activities: Interest earned on investments 30,086 22,946 Net increase in cash and cash equivalents 38,433 68,956 Cash and cash equivalents - January 1 462,877 393,921 Cash and cash equivalents - December 31 $501,310 $462,877 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) $ - ($416,867) 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 8,347 462,877 Total adjustments 8,347 462,877 Net cash flows from operating activities $8,347 $46,010 157 CH 158 CITY OF COLUMBIA HEIGHTS, MINNESOTA TRUST AND AGENCY FUNDS Trust and Agency Funds are used to account for assets held by a government in a trustee or agent capacity for individuals, private organizations, other governments and/or other funds. Agency Funds: Deferred Compensation Fund - used to account for assets held by deferred compensation trustee. Permit Surcharge _Fund - used to account for SAC charges and surcharges collected for and remitted to the State of Minnesota. Escrow Agency Fund - used to account for payroll- related assets and liabilities. Trust Funds: Flex Benefit - used to account for contributions by employees and related expenditures for flexible benefits. Police/Fire Contingency - used to account for future years' expenditures related to police and fire. WI CITY OF COLUMBIA HEIGHTS, MINNESOTA FIDUCIARY FUNDS COMBINING BALANCE SHEET December 31, 1997 Assets Cash and investments Receivables: Interest Due from other governmental units Total assets Liabilities and Fund Balance Liabilities: Accounts payable Deposits Other liabilities Total liabilities Fund balance: Unreserved: Designated for subsequent years' expenditures Undesignated Total fund balance Total liabilities and fund balance 160 Statement 75 Expendable Trust $63,354 - - 5,212 Flex Police/Fire Agency 3,562 Benefit Contingency Funds Total $20,350 $659,187 $15,924 $695,461 184 5,074 - 5,258 - 52,735 256 52,991 $20,534 $716,996 $16,180 $753,710 $3,043 $52,905 $7,406 $63,354 - - 5,212 5,212 - - 3,562 3,562 3,043 52,905 16,180 72,128 - 664,091 - 664,091 17,491 - - 17,491 17,491 664,091 0 681,582 $20,534 $716,996 $16,180 $753,710 CITY OF COLUMBIA HEIGHTS, MINNESOTA TRUST FUNDS Statement 76 'EXPENDABLE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE 1 For The Year Ended December 31, 1997 Flex Police/Fire Benefit Contingency Total ' Revenues: Intergovernmental $ - $85,044 $85,044 'State Flex withholding 33,557 33,557 Interest 1,179 32,563 33,742 Total revenues 34,736 117,607 152,343 Expenditures: Personal services - 52,735 52,735 Other services and charges 31,379 2,214 33,593 Total expenditures 31,379 54,949 86,328 Revenues over expenditures Other financing sources: Operating transfers in Net increase in fund balance Fund balance - January 1 Fund balance - December 31 3,357 3,357 14,134 $17,491 62,658 145,000 207,658 456,433 $664,091 66,015 145,000 211,015 $681,582 161 CITY OF COLUMBIA HEIGHTS, MINNESOTA FIDUCIARY FUNDS Statement 77 COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - ALL AGENCY FUNDS For The Year Ended December 31, 1997 Balance Balance 1/1/97 Additions Deletions 12/31/97 Total All Aeencv Funds Assets Cash and investments: General account $2,012 $147 $112,404 ($110,245) Payroll account 3,000 123,169 - 126,169 Accounts Receivable 216 - 216 - Due from other governmental units - 256 - 256 Total cash and investments 5,228 123,572 112,620 16,180 Assets held by deferred compensation trustees 3,217,308 - 3,217,308 - Total assets $3,222,536 $123,572 $3,329,928 $16,180 Liabilities Accounts payable $ - $7,406 $ - $7,406 Deferred compensation payable to employees 3,217,308 - 3,217,308 - Deposits 3,619 1,593 - 5,212 Other liabilities 1,609 2,253 300 3,562 Total liabilities $3,222,536 $11,252 $3,217,608 $16,180 Deferred Compensation Agency Fund Assets Assets held by deferred compensation trustee $3,217,308 $ - $3,217,308 $ - Liabilities Deferred compensation payable to employees $3,217,308 $ - $3,217,308 $ - Permit Surcharge Agency Fund Assets Cash and investments - general account $95 $147 $ - $242 Liabilities SAC charges /surcharges payable $95 $147 $ - $242 Escrow Agency Fund Assets Cash and investments: General account $1,917 $ - $112,404 ($110,487) Payroll account 3,000 123,169 126,169 Accounts Receivable 216 - 216 - Due from other governmental units - 256 - 256 Total assets $5,133 $123,425 $112,620 $15,938 Liabilities Accounts payable $ - $7,406 $ - $7,406 Deposits 3,619 1,593 - 5,212 Other liabilities: Payroll deductions payable - 806 - 806 Employee activity 1,514 1,300 300 2,514 Total liabilities $ 5,133 $ 11,105 $ 300 $15,938 162 ' 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. 163 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE For The Year Ended December 31, 1997 General Fixed Assets Land Buildings Improvements other than buildings Machinery and equipment Construction in process Total city general fixed assets Investment in General Fixed Assets by Source General Obligation Bonds: Library Bonds of 1966 Municipal Building Bonds of 1959 Park Bonds of 1962 City Garage Bonds of 1972 Capital Improvement Bonds of 1976 Total general obligation bonds Grants: Federal E.D.A. and H.U.D. State Total grants Revenue sharing: Federal Anoka County Total revenue sharing Balance from current revenue and contributions Total investments in general fixed assets WE Statement 78 Balance Balance 1/1/97 Additions Deletions 12/31/97 $3,400,271 $10 $ - $3,400,281 8,154,292 51,378 - 8,205,670 1,517,607 23,516 - 1,541,123 5,798,726 302,119 45,021 6,055,824 29,257 - 29,257 - $18,900,153 $377,023 $74,278 $19,202,898 $90,000 $ - $ - $90,000 150,000 - - 150,000 325,000 - - 325,000 510,000 - - 510,000 929,475 - - 929,475 2,004,475 0 0 2,004,475 526,290 - - 526,290 267,203 - - 267,203 793,493 0 0 793,493 1,752,317 - - 1,752,317 51,550 - - 51,550 1,803,867 0 0 1,803,867 14,298,318 377,023 74,278 14,601,063 $18,900,153 $377,023 $74,278 $19,202,898 I CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY For The Year Ended December 31, 1997 Statement 79 ' Balance Balance 1/1/97 Additions Deletions 12/31/97 ' General government: Council ' Manager Finance and elections Assessing Planning General government buildings Total general government Public safety: Police/animal/civil defense Fire Inspections Total public safety ' Public works: Engineering Maintenance ' Total public works Other departments: ' Sanitation Parks and recreation Library Cable television EDA Construction in process ' Total other departments Total general fixed assets $22,780 $ - $ - $22,780 25,961 - 1,749 24,212 272,422 3,239 5,406 270,255 14,997 - 2,703 12,294 18,519 - - 18,519 1,261,302 2,532 - 1,263,834 1,615,981 5,771 9,858 1,611,894 588,260 76,843 1,903 663,200 802,358 91,565 - 893,923 35,719 - - 35,719 1,426,337 168,408 1,903 1,592,842 238,418 13,677 23,263 228,832 1,903,048 47,080 - 1,950,128 2,141,466 60,757 23,263 2,178,960 652 - - 652 7,715,182 52,553 9,548 7,758,187 375,948 26,769 449 402,268 57,376 59,965 - 117,341 5,537,954 2,800 - 5,540,754 29,257 - 29,257 - 13,716,369 142,087 39,254 13,819,202 $18,900,153 $377,023 $74,278 $19,202,898 [0& CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 1997 General government: Council Manager Finance and elections Assessing Planning General government buildings Total general government Public safety: Police /animallcivil defense Fire Inspections Total public safety Public works: Engineering Maintenance Total public works Other departments: Sanitation Parks and recreation Library Cable television EDA Construction in process Total other departments Totals 11061 Statement 80 Improvements Machinery Other Than and Land Buildings Buildings Equipment Total $ - $ - $ - $22,780 $22,780 - - - 24,212 24,212 - - - 270,255 270,255 - - - 12,294 12,294 - 17,840 - 679 18,519 182,194 997,648 22,296 61,696 1,263,834 182,194 1,015,488 22,296 391,916 1,611,894 - - 1,710 661,490 663,200 - 25,704 2,199 866,020 893,923 - - - 35,719 35,719 0 25,704 3,909 1,563,229 1,592,842 - 5,110 2,801 220,921 228,832 - 37,859 596,511 1,315,758 1,950,128 0 42,969 599,312 11536,679 2,178,960 - - - 652 652 3,080,821 1,970,483 911,672 1,795,211 7,758,187 21,000 204,655 1,134 175,479 402,268 - 5,565 - 111,776 117,341 116,266 4,940,806 2,800 480,882 5,540,754 3,218,087 7,121,509 915,606 2,564,000 13,819,202 $3,400,281 $8,205,670 $1,541,123 $6,055,824 $19,202,898 GENERAL LONG -TERM DEBT ACCOUNT GROUP iThe 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. 167 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF GENERAL LONG -TERM DEBT December 31, 1997 Amount Available And To Be Provided For The Payment Of General Long -Term Debt Statement 81 Amount available in Debt Service Funds $822,740 Amount to be provided for retirement of: Long -term debt 6,988,844 Total available and to be provided for $7,811,584 General Long -Term Debt Payable General Obligation Bonds payable $6,314,721 Accreted interest on Capital Appreciation Bonds 1,496,863 Total general long -term debt payable $7,811,584 •: CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY Statement 82 December 31, 1997 169 General Obligation Bonds Year Principal Interest 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 $6,314,721 $4,889,466 169 CH 170 CITY OF COLUMBIA HEIGHTS, MINNESOTA SUPPLEMENTARY FINANCIAL INFORMATION 171 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINING SCHEDULE OF BONDS PAYABLE December 31, 1997 Tax Increment Bonds G.O. Tax Increment Capital Appreciation Bonds of 1990 . Tax Increment Refunding Bonds of 1991 All bonds maturing on or after March 1, 2000 shall be subject to redemption and prior payment in whole or in part at the option of the issuer on March 1, 1999 and on any day thereafter at a price of par and accrued interest. x Increment Refunding Bonds of 1 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 172 Interest Issue Maturity Rate Date Date 8/22/86 8/31/05 9/01 6.90% 6.95% 7.00% 7.00% 7.10% 7.10% 7.15% 7.15% 3/01-9/01 5.30% 5.50% 5.60% 5.70% 5.80% 11/20/87 2/28/98 6/30/89 1/31/93 Exhibit 1 173 Interest Original Balance Balance Paid in Issue 1/1/97 Sold Retired 12/31/97 Current Year $2,399,721 2 399 721 - - $2,399,721 $ - 6,670,000 4,870,000 - 955,000 3,915,000 137,815 735,000 200,000 - 200,000 - 5,150 $9,804,721 $7,469,721 $0 $1,155,000 $6,314,721 $142,965 173 CH 174 CITY OF COLUMBIA HEIGHTS, MINNESOTA I III. STATISTICAL ISECTION 175 CITY OF COLUMBIA HEIGHTS, MINNESOTA ASSESSED VALUE, TAX CAPACITY, AND Table 1 ESTIMATED ACTUAL VALUE OF ALL TAXABLE PROPERTY (A) Years 1988 Through 1997 (Unaudited) Ratio of Total Assessed/ Tax Capacity Real Property Personal Property Area Wide Allocation (B) Total Value Assessed/ Estimated Assessed/ Estimated Assessed/ Estimated to Total Fiscal Tax Capacity Actual Tax Capacity Actual Tax Capacity Actual Estimated Year Value Value Value Value Contribution Distribution Value Value Actual Value 1988 $114,767,361 $484,669,200 $1,547,299 $3,619,300 ($5,778,163) $15,650,911 $126,187,408 $488,288,500 25.84% 1989 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% 1990 14,532,465 522,002,900 208,985 4,017,800 (725,395) 2,478,750 16,494,805 526,020,700 3.14% 1991 10,022,891 533,586,700 212,505 4,234,500 (712,924) 2,841,497 12,363,969 537,821,200 2.30% 1992 9,901,542 536,614,500 210,051 4,258,500 (510,571) 3,290,306 12,891,328 540,873,000 2.38% 1993 9,503,314 538,522,400 207,255 4,398,000 (609,791) 3,067,799 12,168,577 542,920,400 2.24% 1994 9,226,574 537,840,800 207,309 4,447,000 (594,265) 2,852,940 11,692,558 542,287,800 2.16% 1995 9,021,129 541,715,800 207,658 4,549,100 (608,080) 2,759,929 11,380,636 546,264,900 2.08% 1996 8,884,233 546,047,800 220,961 4,803,500 (552,406) 2,603,671 11,156,459 550,851,300 2.03% 1997 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 1989 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 1990, 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, 1989 and prior years are reported under the old system of assessed valuation, while 1990 and subsequent years are reported in terms of tax capacity. (B) The Metropolitan Fiscal Disparities Act was first implemented for taxes payable in 1975 for the seven Metropolitan counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. Forty percent of the increase in commercial - industrial (including public utility) valuation in each assessment district since 1971 is contributed to an area -wide tax base. Using the factors of population and real property market value, a per capita distribution index is calculated. This index is employed in determining what proportion of the valuation shall be distributed back to each assessment district. 176 CITY OF COLUMBIA HEIGHTS, MINNESOTA TAX RATES - PER $100 OF TAX CAPACITY Years 1988 Through 1997 (Unaudited) Year (A) City School County Metro Other (B) 1988 19.472 63.234 29.414 4.223 1.136 117.479 1989 20.083 60.733 30.766 4.314 0.992 116.888 1990 0.15722 0.51364 0.25184 0.03360 0.00954 0.96584 1991 0.20275 0.41329 0.26440 0.03470 0.00988 0.92502 1992 0.19040 0.53249 0.28808 0.03395 0.01102 1.05594 1993 0.22956 0.61847 0.30308 0.03928 0.00937 1.19976 1994 0.23021 0.68142 0.30033 0.04225 0.01018 1.26420 1995 0.25686 0.69161 0.29899 0.04370 0.01570 1.30686 1996 0.26460 0.77730 0.29946 0.05280 0.01488 1.40904 1997 0.29018 0.84748 0.28000 0.04605 0.01381 1.47752 1 (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. Table 2 CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY TAX LEVY Years 1988 Through 1997 (Unaudited) Table 3 Fiscal City Levy General Police Fire Year Total Fund Relief Relief Library EDA 1988 $2,391,689 $2,258,872 $65,242 $67,575 $ - $ - 1989 2,391,689 2,298,989 54,266 38,434 - - 1990 2,882,056 2,760,455 64,549 57,052 - - 1991 3,144,069 2,963,869 98,606 81,594 - - 1992 3,368,595 3,368,595 - - - - 1993 3,463,645 3,084,666 - - 378,979 - 1994 3,548,960 3,158,342 - - 390,348 - 1995 3,587,209 3,196,861 - - 390,348 - 1996 2,754,161 2,340,393 - - 413,768 - 1997 3,038,144 2,517,101 - - 422,043 99,000 178 I CITY OF COLUMBIA HEIGHTS, MINNESOTA TAX LEVIES AND TAX COLLECTIONS Years 1988 Through 1997 (Unaudited) Table 4 179 Ratio of Accumulated Collections Percentage Collections Delinquent of Current of Levy of Prior Ratio Taxes to Years Taxes Collected Years Taxes of Total Accumulated Current Year Total During Fiscal During Fiscal During Fiscal Total Collections Delinquent Year Collected Tax Levy* Period Period Period Collections to Tax Levy Taxes Tax Levy 1988 $1,800,335 $1,762,573 97.9% $18,395 $1,780,968 0.9892:1 $53,374 0.02965:1 1989 1,811,862 1,785,190 98.5% 13,601 1,798,791 0.9928:1 79,005 0.04360:1 1990 2,079,001 2,057,446 99.0% 3,249 2,060,695 0.9912:1 81,891 0.03939:1 1991 2,226,208 2,183,800 98.1% 31,274 2,215,074 0.9950:1 88,809 0.03989:1 1992 2,406,707 2,360,410 98.1% 19,290 2,379,700 0.9888:1 109,305 0.04542:1 1993 2,453,972 2,400,802 97.8% 25,753 2,426,555 0.9888:1 123,285 0.05024:1 1994 2,583,699 2,531,198 98.0% 16,381 2,547,579 0.9860:1 79,071 0.03060:1 1995 2,608,699 2,571,649 98.6% 12,843 2,584,492 0.9907:1 40,418 0.01549:1 t1996 2,754,161 2,726,715 99.0% 78,666 2,805,381 1.0186:1 33,408 0.01213:1 1997 2,078,315 2,263,960 108.9% 23,818 2,287,778 1.1008:1 48,239 0.02321:1 * 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. 179 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Years 1988 Through 1997 (Unaudited) Fiscal Year 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 * (A) :1 Table 5 The parking ramp at 4025 Van Buren Street NE was assessed; however, it was not included in this figure. The City bills the property owner directly when a special assessment installment becomes due. If the installment becomes delinquent, it is certified to the County for inclusion on the following year's property tax statement and is shown as a delinquent collection. Deferred Special Assessments Current Current Collections Special Collected Balance Assessments % of Delinquent Assessments During at End of Due Amount Levy Collections (A) Delinquent Fiscal Period Fiscal Period * $197,641 $110,447 55.9% $50,534 $149,795 $143,565 $1,149,826 * 218,860 142,076 64.9% 95,361 97,030 219,588 637,341 * 250,682 180,388 72.0% 74,581 109,928 309,544 591,415 * 252,190 134,588 53.4% 39,016 77,005 210,029 565,432 * 224,922 171,708 76.3% 55,385 73,962 54,141 416,229 * 104,941 71,722 68.3% 59,468 59,185 139,047 364,055 * 125,888 85,292 67.8% 39,267 60,229 102,127 304,970 159,282 86,587 54.4% 53,447 79,057 25,130 186,323 64,767. 38,470 59.4% 58,495 34,147 70,506 158,269 76,405 32,286 42.3% 21,532 54,706 259,263 558,078 The parking ramp at 4025 Van Buren Street NE was assessed; however, it was not included in this figure. The City bills the property owner directly when a special assessment installment becomes due. If the installment becomes delinquent, it is certified to the County for inclusion on the following year's property tax statement and is shown as a delinquent collection. CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL GOVERNMENTAL REVENUES BY SOURCE (A) Table 6 Years 1988 Through 1997 (Unaudited) Special Fiscal Assessments Licenses Inter- Charges for Fines and Miscellaneous Year Taxes (B) and Permits governmental Services Forfeitures Interest (C) Total 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 1997 4,489,572 - 202,533 4,302,631 923,485 127,074 443,034 127,862 10,616,191 Notes: i(A) Includes General, Special Revenue, and Debt Service Fund Types. (B) Beginning in 1987, the Special Assessment Fund Type was eliminated and special assessment collections were recorded in ' the Debt Service Fund Type. (C) From 1988 to 1990, the Housing and Redevelopment Authority is blended as a component unit of the City. Beginning Iin 1991, the Housing and Redevelopment Authority is discretely presented as a separate column. 181 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (A) Years 1988 Through 1997 (Unaudited) Highways Fiscal General Public and Year Government Safety Streets Debt Other 1988 $1,034,970 $2,218,196 $563,432 1989 1,114,211 2,303,702 785,818 1990 1,429,627 2,551,543 762,642 1991 1,285,382 2,538,215 891,133 1992 1,356,795 2,563,788 819,300 1993 1,441,603 2,679,272 806,990 1994 1,352,543 2,576,987 841,861 1995 1,395,395 2,550,980 938,819 1996 1,354,292 2,597,866 965,677 1997 1,397,129 2,542,310 1,075,682 Table 7 Notes: (A) Includes General, Special Revenue, and Debt Service Fund Types. (B) From 1988 to 1990, the Housing and Redevelopment Authority is blended as a component unit of the City. Beginning in 1991, the Housing and Redevelopment Authority is discretely presented as a separate column. 182 Parks and Debt Other Sanitation Recreation Library Service (B) Total $90,760 $1,206,281 $353,241 $1,754,031 $1,999,737 $9,220,648 122,304 1,400,850 333,188 2,399,342 1,108,743 9,568,158 184,627 1,514,853 368,363 2,469,400 1,298,528 10,579,583 108,108 954,236 390,251 3,950,683 352,510 10,470,518 176,216 1,044,021 383,933 2,272,802 397,879 9,014,734 149,054 1,040,459 374,625 2,963,693 499,702 9,955,398 100,111 1,037,181 395,821 1,688,796 419,918 8,413,218 73,815 977,813 405,873 1,424,633 833,417 8,600,745 124,580 1,055,083 409,047 1,475,888 1,608,033 9,590,466 84,251 1,201,796 427,358 1,477,132 1,752,565 9,958,223 Notes: (A) Includes General, Special Revenue, and Debt Service Fund Types. (B) From 1988 to 1990, the Housing and Redevelopment Authority is blended as a component unit of the City. Beginning in 1991, the Housing and Redevelopment Authority is discretely presented as a separate column. 182 I CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL CITY OFFICIALS Year Ended December 31, 1997 Name Mayor and Council Joseph Sturdevant Gary L. Peterson Meg Jones Donald G. Jolly Robert W. Ruettimann Marlaine Szurek Administration Walter Fehst Linda Magee William Elrite June Johnston Phil Suckerman Jim Hoeft Kevin Hansen Thomas Johnson Charles Kewatt Lauren McClanahan Keith Windschitl M. Rebecca Loader r Table 8 Official Title Mayor Councilmember Councilmember Councilmember Councilmember Councilmember -Elect 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 183 CITY OF COLUMBIA HEIGHTS, MINNESOTA MISCELLANEOUS STATISTICS December 31, 1997 (Unaudited) Date of Incorporation Date of Adoption of City Charter Form of Government Fiscal Year Begins Area of City Miles of Streets and Alleys: Trunk Highways County City Streets Alleys Miles of Sewers: Storm Sewers Sanitary Sewers Watermain Miles Building Permits Issued: 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 Estimated Construction Cost for Issued Permits: 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 WE Table 9 Page 1 of 2 March 14, 1898 July 21, 1921 Council- Manager January 1 3.52 Square Miles 3.0 6.2 61.8 18.9 33.6 59.0 66.1 535 473 486 484 515 505 565 596 602 678 $8,916,756 5,180,247 5,198,200 4,894,021 2,373,433 3,292,353 4,522,438 4,927,970 11,910,040 5,904,308 CITY OF COLUMBIA HEIGHTS, MINNESOTA MISCELLANEOUS STATISTICS December 31, 1997 Table 9 Page 2 of 2 (Unaudited) 1 Fire Protection: Number of Stations I Number of Employees: Full -time 8 Part-time I Volunteer 21 Police Protection: Number of Stations I Number of Employees 34 Parks: City Parks 13 Playgrounds 11 County Park I Schools: Senior High I Junior High I Elementary 3 Parochial Elementary I Employees (as of December 31, 1997): Regular 116 Part-time and Temporary 217 333 Elections: Registered voters - Last City General Election 10,739 Number of Votes Cast - Last City General Election 2,749 Percentage of Registered Voters Voting 25.60% 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) 18,910 185 CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL TAXPAYERS December 31, 1997 (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 a -,Northern States Power Utility Minnegasco Utility ; Lynde Investment Apartments Crestview Lutheran Home Apartments Total Principal Taxpayers Source of Data: Anoka County Auditor's Office . 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, 1997 (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 6,314,721 7,469,721 Less: Tax increment bonds 6,314,721 7,469,721 (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. 5. Obligations issued for the acquisition and betterment of public water works systems and public lighting, heating or power systems, and of any combination thereof or for any other public convenience from which a revenue is or may be derived. 6. Not applicable. 7. Amount of all money and face value of all securities held as a Debt Service Fund for the extinguishment of obligations other than those deductible under this subdivision. 8. All other obligations which under the provisions of law authorizing their issuance are not to be included in computing the net debt of the municipality. 187 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING DEBT December 31, 1997 (Unaudited) Direct debt: City of Columbia Heights Overlapping debt: Anoka County Metropolitan Council Totals ..1 Net General Obligation Debt $7,469,721 53,653,096 110,525,000 $171,647,817 Percentage Applicable to City 100.0% Table 12 Amount Applicable to City of Columbia Heights Share of Debt $7,469,721 2.73% 1,464,730 0.15% 163,577 $9,098,028 CITY OF COLUMBIA HEIGHTS MINNESOTA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS Years 1988 Through 1997 (Unaudited) Table 13 Bank Deposits (B) 7,018,831 (C) 10,311,528 9,923,902 10,155,837 16,636,883 (D) 24,438,648 22,725,067 24,451,568 49,257,825 Property Value (A) Construction Fiscal Number Year Real Personal Total of Units Value 1988 $114,767,361 $1,547,299 $116,314,660 535 $8,916,756 1989 116,314,660 1,679,868 117,994,528 473 5,180,247 1990 14,532,465 208,985 14,741,450 486 5,198,200 1991 10,022,891 212,505 10,235,396 484 4,894,021 1992 9,901,542 210,051 10,111,593 515 2,373,433 1993 9,503,314 207,255 9,710,569 505 3,292,353 1994 9,226,574 207,309 9,433,883 565 4,522,438 1995 9,021,129 207,658 9,228,787 596 4,927,970 1996 8,884,233 220,961 9,105,194 602 11,910,040 1997 9,185,608 224,356 9,409,964 678 5,904,308 * 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, US Bancorp, 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. Table 13 Bank Deposits (B) 7,018,831 (C) 10,311,528 9,923,902 10,155,837 16,636,883 (D) 24,438,648 22,725,067 24,451,568 49,257,825 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 1988 Through 1997 (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 1988 19,540 $126,187,408 $22,485,000 $12,999,367 $9,485,633 7.52% $511 1989 19,540 130,685,327 21,770,000 12,665,931 9,104,069 6.97% 485 1990 19,540 16,494,805 16,464,721 5,175,702 11,289,019 68.44% 466 1991 18,910 12,363,969 20,415,165 9,603,694 10,811,471 87.44% 597 1992 18,910 12,891,328 19,059,721 8,916,964 10,142,757 78.68% 572 1993 18,910 12,168,577 17,209,721 7,922,087 9,287,634 76.32% 536 1994 18,910 11,692,558 9,679,721 1,171,524 8,508,197 72.77% 491 1995 18,910 11,380,636 8,624,721 1,422,979 7,201,742 63.28% 450 1996 18,910 11,156,459 7,469,721 843,287 6,626,434 59.40% 350 1997 18,910 11,833,920 6,314,721 822,740 5,491,981 46.41% 290 190 CITY OF COLUMBIA HEIGHTS, MINNESOTA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES Table 15 FOR GENERAL OBLIGATION BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES Years 1988 Through 1997 (Unaudited) Ratio of Total Debt Service to Total General General Fiscal Debt Governmental Governmental Year Principal Interest Service Expenditures Expenditures 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% t1993 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% 1997 1,155,000 246,128 1,401,128 9,958,223 14.1% 191 CITY OF COLUMBIA HEIGHTS, MINNESOTA 192 1 t SINGLE AUDIT AND OTHER REQUIRED REPORTS 193 CH 194 CITY OF COLUMBIA HEIGHTS, MINNESOTA 9MTautges Redpath, Ltd. Certified Public Accountants and Consultants ' Independent Auditor's Report on Compliance with Minnesota Legal Compliance Audit Guide for Local Governments 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, 1997, and have issued our report thereon dated March 13, 1998. We conducted our audit in accordance with generally accepted auditing standards, and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government promulgated by the Legal Compliance Task Force pursuant to Minnesota Statutes Section 6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. / The Minnesota Legal Compliance Audit Guide for Local Government covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, and claims and disbursements. Our study included all of the above listed categories. The results of our tests indicate that for the items tested, the City of Columbia Heights, Minnesota complied with the material terms and conditions of applicable legal provisions, except as described in this report. Further, for the items not tested, based on our audit and the procedures referred to above, nothing came to our attention to indicate that the City of Columbia Heights, Minnesota had not complied with such legal provisions. This report is intended solely for the use of the City of Columbia Heights, Minnesota 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, /" 7'*i4 HLB TAUTGES REDPATH, LTD. Certified Public Accountants March 13, 1998 4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA Telephone: 612 426 7000 Fax: 612 426 5004 HLB Tautges Redpath, Ltd. is a member of 0 International. A world -wide organization of accounting firms and business advisers. 195 CH 196 CITY OF COLUMBIA HEIGHTS, MINNESOTA FINDING: Late Pa ent of Claims -" CONDITION: Several claims of the Parkview Villa were not aid within 35 days of P Y receipt. These claims are received by the management company at Parkview Villa. It appears that the management company does not always forward the claims to the City on a timely basis. CRITERIA: Minnesota Statute 471.425 reads as follows: 471.425 PROMPT PAYMENT OF LOCAL GOVERNMENT BILLS Subd. 2 Payment Required. A municipality must pay each vendor obligation according to the terms of the contract or, if no contract terms apply, within the standard payment period unless the municipality in good faith disputes the obligation. Standard payment period is defined as follows: (a) For municipalities who have governing boards which have regularly scheduled meetings at least once a month, the standard payment period is defined as within 35 days of the date of receipt. IRECOMMENDATION: We recommend that internal procedures be reviewed and amended to ensure that Parkview Villa claims are paid on a timely basis. r CITY RESPONSE: City staff have noted both verbally and in writing that it is absolutely imperative all purchase requisitions and payment vouchers for Parkview Villa and 4607 Tyler Street N.E. be picked up at City Hall in the community development office on a regular basis, completed as ' necessary, and returned to the community development office as soon as possible. In no case should these forms be submitted later than Friday of each week. This submittal date deadline will ensure that all payment vouchers and purchase requisitions are submitted prior to the Tuesday noon deadline imposed by the Finance Department for subsequent City Council/EDA approval. 197 CH 10 CITY OF COLUMBIA HEIGHTS, MINNESOTA Tautges Redpath, Ltd. ' Certified Public Accountants and Consultants ' Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Honorable Mayor and Members of the City Council Columbia Heights, Minnesota ' We have audited the financial statements of City of Columbia Heights, Minnesota as of and for the year ended December 31, 1997, and have issued our report thereon, dated March 13, 1998. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether City of Columbia Heights, Minnesota's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, 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. Internal Control Over Financial Reporting In planning and performing our audit, we considered City of Columbia Heights, Minnesota's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the 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 over financial reporting and its operation that we consider to be material weaknesses. 4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA Telephone: 612 426 7000 Fax: 612 426 5004 ' HLB Tautges Redpath, Ltd. is a member of 0 International. A world -wide organization of accounting firms and business advisers. 199 CH ulic CITY OF COLUMBIA HEIGHTS, MINNESOTA ' However, we noted certain matters involving the internal controls and its operation that we have reported to the management of the City of Columbia Heights, Minnesota, and the Columbia Heights Economic Development, in separate reports dated April 17, 1998 This report is intended for the information of the audit committee, management and federal ' awarding agencies and pass - through entities. However, this report is a matter of public record, and its distribution is not limited. ' HLB TAUTGES REDPATH, LTD. Certified Public Accountants IMarch 13, 1998 201 (H 202 CITY OF COLUMBIA HEIGHTS, MINNESOTA Tautges Redpath, Ltd. ' Certified Public Accountants and Consultants Report on Compliance with Requirements Applicable to each Major Promm and Internal Control over Compliance in Accordance with OMB Circular A -133 To the Honorable Mayor and Members of the City Council Columbia Heights, Minnesota ' Compliance We have audited the compliance of City of Columbia Heights, Minnesota with the types of ' compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A -133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 1997. City of Columbia Heights, Minnesota's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the ' responsibility of City of Columbia Heights, Minnesota's management. Our responsibility is to express an opinion on City of Columbia Heights, Minnesota's compliance based on our audit. ' We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. Those standards and OMB Circular A -133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that ' could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about City of Columbia Heights, Minnesota's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Columbia Heights, Minnesota's compliance with those requirements. In our opinion, City of Columbia Heights, Minnesota complied, in all material respects, with ' the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 1997. However, the results of our auditing procedures disclosed instances on noncompliance with those requirements that are required to be reported in ' accordance with OMB Circular A -133 and which are described in the accompanying schedule of findings and questioned costs as items 97 -2 through 97 -4. 4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA Telephone: 612 426 7000 Fax: 612 426 5004 HLB Tautges Redpath, Ltd. is a member of 0 International. A world -wide organization of accounting firms and business advisers. 203 CH 204 CITY OF COLUMBIA HEIGHTS, MINNESOTA ' Internal Control Over Compliance The management of City of Columbia Heights, Minnesota is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we ' considered City of Columbia Heights, Minnesota's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A- 133. We noted certain matters involving the internal control over compliance and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over compliance that, in our judgment, could adversely affect the City of Columbia Heights, Minnesota's ability to administer a major federal program in accordance with applicable requirements of laws, regulations, contracts and grants. Reportable conditions are described in ' the accompanying schedule and findings and questioned costs as items described in item 97 -1, 97 -5 and 97 -6 in the accompanying schedule of findings and questioned costs. ' A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that ' would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily ' disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe none of the reportable conditions described above is a ' material weakness. However, we noted certain matters involving the internal controls and its operation that we ' have reported to the management of the City of Columbia Heights, Minnesota, and the Columbia Heights Economic Development, in separate reports dated April 17, 1998. ' This report is intended for the information of the audit committee, management and federal awarding agencies and pass - through entities. However, this report is a matter of public record, and its distribution is not limited. ' HLB TAUTGES REDPATH, LTD. Certified Public Accountants ' March 13, 1998 205 Wei CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA ' SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 1997 SECTION I - SUMMARY OF AUDIT RESULTS 1. The auditors report expresses an unqualified opinion on the financial statements of 1 City of Columbia Heights, Minnesota. 2. There were no reportable conditions disclosed during the audit of the financial statements as reported in the Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in accordance with Government Auditing Standards. 1 3. No instances of noncompliance material to the financial statements of City of Columbia Heights, Minnesota were disclosed during the audit. ' 4. Three reportable conditions relating to the audit of the major federal award programs is reported in the Report on Compliance with Requirements Applicable to each Major ' Program and Internal Control over Compliance in Accordance with OMB Circular A- 133. I 5. The auditor's report on compliance for the major federal award programs for City of Columbia Heights, Minnesota expresses an unqualified opinion. 6. Audit findings relative to the major federal award programs for City of Columbia Heights, Minnesota are reported in Part C of this Schedule. ' 7. The Section 8 cluster of programs was tested as a major program which included: Section 8 Voucher Program - CFDA #14.855, Section 8 Certificate Program - CFDA #14.857, and the Program for Administrative Services - CFDA #14.856. ' 8. The threshold for distinguishing Types A and B programs was $300,000. 1 9. City of Columbia Heights, Minnesota was not determined to be a low -risk auditee. 207 CH 208 CITY OF COLUMBIA HEIGHTS, MINNESOTA 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 1997 SECTION II - FINANCIAL STATEMENT FINDINGS No financial statement findings were noted. SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS ' DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 97 -1: CDBG Program, CFDA No. 14.218, passed through Anoka County Condition: The City submitted, and received reimbursement, for an expenditure which ' had been previously submitted and reimbursed. This was the third time the City received reimbursement for this particular item. The second reimbursement occurred during 1995. In 1996 the City returned the second reimbursement to the County. tExpenditures reimbursed three times: 1) Check #51004, dated 1/23/95, ' for subrecipient payment to ACCAP $4,078.88 Because of this error, certain qualifying expenditures were not submitted because program budgets had been exceeded. Questioned Cost: $4,079 Recommendation: We recommend the City retain this reimbursement and submit documentation of other qualifying expenditures which have not yet been submitted. Grantee Response: Staff will inquire with Anoka County Community Development Department officials regarding the acceptability of the City retaining the reimbursement ' in the amount of $4,079 and submit documentation of other qualifying expenditures which have not been submitted for reimbursement. Several other projects have been undertaken which may qualify for reimbursement with CDBG funds. 97 -2: Section 8 Rental Voucher and Certificate Program, CFDA #14.855 and #14.857, direct from HUD Condition: The waiting list format has not been updated nor does it contain sufficient ' information for proper selection of families who are next eligible for a certificate or a voucher according to its Equal Opportunity Plan. 209 CH 210 CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 1997 1 Criteria: The Compliance Supplement for the Section 8 Cluster under Section E. Eligibility states "Select participants from the waiting list in accordance with the admission policies in its administrative plan and maintain documentation which shows that, at the time of admission, the family actually met the preference criteria that determined that the family's place on the waiting list." The City has been using the Public Housing Handbook issued by HUD 7420.7. In section 4 -3 Preparation of Tenant ' Files and Placement of Family's Name on Waiting List "...The Public Housing Authority must also place the family's name on the waiting list, unless the family was determined ineligible... The waiting list format must contain sufficient information for proper selection by the Public Housing Authority of families who are next eligible for a Certificate according to its Equal Opportunity Housing Plan." "If verification occurred 1 more than 120 days prior to selection, the information should be reverified prior to briefing and issuing a Certificate." ' Examples include: • Certain families listed on the waiting list already have been issued a certificate or a ' voucher. • All applications received on the waiting list were received in 1995 and 1996. According to the HUD Handbook Section 7420.7, verification occurred more than 120 days prior to selection, the information should be re- verified prior to issuing a certificate. • We were unable to determine if eligibility was reviewed or verified when families originally applied. Families should not be listed on the waiting list unless it is ' determined that they meet the eligibility requirements. Questioned Costs: None ' Recommendation: The grantee should update the status of the waiting list. The grantee �' p should be monitoring the list on a regular basis to ensure that it is current. The grantee should test eligibility requirements before putting names on the list. All eligibility tests should be maintained and kept on file. Grantee Response: Staff has been in the process of updating the Section 8 waiting list. All Section 8 participants who are issued a Section 8 voucher or certificate undergo an ' evaluation and verification that they are income eligible to participate in the Section 8 program. When a determination has been made that families on the waiting list may be issued an available certificate or voucher, the Staff will re -verify eligibility at that time. ' Furthermore, all new families being added to the waiting list have been and will continue to be initially screened to verify eligibility in accordance with the U.S. Department of 211 CH 212 CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA ' SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 1997 Housing and Urban Development requirements. Completion of this work and maintaining the appropriate waiting list and eligibility test requirements will be maintained and kept on file and will be fully completed not later than August, 1998. 97 -3: Section 8 Rental Voucher and Certificate Program, CFDA #14.855 and 14.857, direct from HUD Condition and Criteria: At the time of testing, rent reasonableness procedures did not include the use of such things as telephone surveys, site visits after telephoning, or more 1 extensive market surveys of available rental units. The Section 8 Cluster Compliance Supplement includes verification of rent reasonableness in the suggested audit procedures. Questioned Costs: None ' Recommendation: We recommend that procedures are performed to test rent reasonableness in the Columbia Heights area. tGrantee Response: A survey designed to determine and verify rent reasonableness will be sent out to landlords in Columbia Heights within 60 days. Further contacts have been ' made with the Anoka County Housing Coordinator who will provide a list of all rental units available in Columbia Heights. ' 97 -4: Section 8 Rental Voucher and Certificate Programs, CFDA #14.855 and 14.857, direct from HUD Condition and Criteria : The HUD approved Equal Housing Opportunity logo, slogan or statement, is not displayed in marketing materials. This criteria is taken from Suggested Audit Procedures under Chapter 3 Section 8 Audit Guidance lists and is described under section 3 -5 A. 2. e Questioned Costs: None tRecommendation: We recommend the Equal Housing Opportunity logo be used on all marketing materials including letterhead. ' Grantee Response: The Deputy Executive Director has informed the Section 8 staff that all Section 8 marketing materials, applications, and other forms illustrate in a prominent manner the approved HUD Equal Housing Opportunity Logo. Staff has obtained a copy of the Equal Opportunity Logo which will be placed on all new and revised forms. 213 CH 214 CITY OF COLUMBIA HEIGHTS, MINNESOTA I CITY OF COLUMBIA HEIGHTS, MINNESOTA 1 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 1997 97 -5: Section 8 Rental Voucher and Certificate Programs, CFDA #14.855 and 14.857, direct from HUD Condition and Criteria: 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. Although only 54% of budgeted ' expenditures were used in 1997, the budget was not revised. Questioned Costs: None Recommendation: The grantee should amend its internal procedures to ensure that revised budgets are submitted as needed. 1 Grantee Response: In verbal discussions with HUD officials, it was determined that for any revenue amounts which were already received and exceeded budgeted expenditures, ' the amount would be withheld from future receipts until such time as the budgeted revenues and expenditures met HUD requirements. Therefore, revised budgets were not 1 submitted as needed. The current utilization rate exceeds 94% and staff will submit revised budgets if needed. 97 -6: Section 8 Rental Voucher and Certificate Programs, CFDA #14.855 and 14.857, direct from HUD Condition and Criteria: Required federal reports were not submitted on a timely basis. The reports for 1997 were filed in March, 1998. HUD requires submission of HUD Forms 52681 and 52595 within 45 days of the grantee's fiscal year end (December 31). ' Recommendation: The grantee should amend its internal procedures to ensure reports are submitted on a timely basis. Questioned Costs: None ' Grantee Response: The referenced reports were due on February 15, 1998 for the fiscal year end December 31, 1997. The required reports were submitted. A department calendar has been prepared identifying various forms and reports, their respective due ' dates, and the staff person accountable for completion of the form/report on a timely basis. Said calendar will be reviewed on a monthly basis during department staff meetings to assure completion as necessary. 215 e 216 (o CITY OF COLUMBIA HEIGHTS, MINNESOTA k I CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 1997 SECTION IV - PRIOR YEAR FINDINGS ' DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 1996 - Finding No. 1: CDBG Program, CFDA #14.218, passed through Anoka County 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. Questioned Costs: $2,646 Current Status: In 1997 Anoka County was reimbursed for the amount of $2,646. 1996 - Finding No. 2: Section 8 Certificate and Housing Voucher Program, CFDA #14.855 and 14.857, direct from HUD Condition and Criteria: Required federal reports were not submitted on a timely basis. The reports for 1996 were filed some time after March, 1997. HUD requires submission 1 of HUD Forms 52681 and 52595 within 45 days of the grantee's fiscal year end (December 31). Questioned Costs: None 1 Current Status: This remains a current finding - see finding 97 -6. 1996 - Finding No. 3: Section 8 Certificate and Housing Voucher Program CFDA #14.855 and 14.857, direct from HUD 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. 217 CH 218 CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY OF COLUMBIA HEIGHTS, MINNESOTA ' SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 1997 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. ' Questioned Costs: None Current Status: No additional receipts of federal funds were received in 1997. However, the grantee did not submit a revised budget for 1997 even though the actual activity was significantly less than the original approved budget. See current finding 97- 5. 1996 - Finding No. 4: Section 8 Housing Assistance Payments Program for Administrative Services, CFDA No. 14856, passed through Metropolitan Council. 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 �) p q submission of certain quarterly reports. Questioned Costs: None Current Status: The Metropolitan Council no longer requires the submission of these reports. Additionally, the grantee no longer operates this specific program as of January ' 1, 1998. 1996 - Finding No. 5: CDBG Program, CFDA No. 14.218, passed through Anoka 'Counly 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. IQuestioned Costs: None Current Status: No properties in 1997 were purchased with federal funds. 219 CITY OF COLUMBIA HEIGHTS, MINNESOTA F� J fl 220 1 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For The Year Ended December 31, 1997 ' Federal Funding Source/ Federal Pass Through Agency/ CFDA Federal Program Title Number Expenditures ' U.S. Department of Justice: Direct: Police Hiring Supplement 16.580 $37,004 FAST COPS Grant 16.710 26,728 Local Law Enforcement Block Grant 16.592 20,349 Federal Emergency Management Agency: Passed - through Anoka County: Emergency Management Assistance Grant 83.503 4,534 Passed - through State of MN: Disaster Assistance 83.516 19,840 U.S. Department of Housing and Urban Development: ' Passed - through Anoka County: Community Development Block Grant - Entitlement Grant (CDBG) 14.218 21,163 Direct: Operating Subsidy 14.850 64,531 Section 8 Cluster Passed- through Metropolitan Council: ' Section 8 Housing Assistance Payments Program for Administrative Services 14.856 * 28,654 Direct: Section 8 Voucher Program 14.855 * 93,754 Section 8 Certificate Program 14.857 * 73,516 Total Federal Expenditures $390,073 ' * Major Program Notes to the schedule of expenditures of federal awards ' Note 1. Basis of Presentation The above schedule of expenditures of federal awards includes the federal grant activity of the City of Columbia Heights, Minnesota and is presented on the accrual basis of accounting. The information in ' this schedule is presented in accordance with the requirements of OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the general purpose ' financial statements. Note 2. Subrecipients Of the federal expenditures presented in the schedule, the City of Columbia Heights, Minnesota provided ' federal awards to subrecipients as follows: Federal Amount ' CFDA Provided Program Title Number to Subrecipients Community Development Block Grant - Entitlement Grants 14.218 $6,093 1 221 CITY OF COLUMBIA HEIGHTS, MINNESOTA ' II�1 222 1