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HomeMy WebLinkAbout1998 CAFRCOMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF COLUMBIA HEIGHTS STATE OF MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 1998 Prepared By: Finance Department This page intentionally left blank. CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Reference Page Number I. INTRODUCTORY SECTION ' Principal City Officials 3 Organizational Chart 5 jLetter of Transmittal 7 Certificate of Achievement for Excellence in Financial Reporting 17 II. FINANCIAL SECTION Independent Auditor's Report General Purpose Financial Statements 21 Combined Balance Sheet - All Fund Types and Account Groups Statement 1 26 ' Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All Governmental Fund Types and Expendable Trust Fund Statement 2 30 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General and Special Revenue Fund Types Statement 3 32 ' Combined Statement of Revenues, Expenses and Changes in Retained Earnings - Proprietary Fund Types Statement 4 34 tCombined Statement of Cash Flows - Proprietary Fund Types Statement 5 35 Notes to Financial Statements 37 Required Supplementary Information Year 2000 Issue (Unaudited) 66 Combining, Individual Fund and Account Group Financial Statements ' General Fund: Balance Sheet Statement 6 71 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Statement 7 72 Schedule of Revenues - Budget and Actual Statement 8 74 Schedule of Expenditures - Budget and Actual r Statement 9 75 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Housing and Redevelopment Authority (Component Unit): Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Statement 32 109 Economic Development Authority (Component Unit): Combining Balance Sheet Reference Page Number Special Revenue Funds: Combining Balance Sheet Statement 10 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 11 84 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Statement 35 114 Municipal State Aid Street Fund Statement 12 88 Cable Television Fund Statement 13 89 Police/Fire Contingency Fund Statement 14 90 D.A.R.E. Program Statement 15 91 Library Fund Statement 16 92 Federal Police Grant Statement 17 93 FAST COPS Grant Statement 18 94 Community Development Statement 19 95 Statement of Revenues, Expenditures and Changes in Fund Balance: COPS MORE 96 Statement 20 96 Juvenile Justice Grant Statement 21 97 Local Law Enforcement Block Grant Statement 22 98 COPS Grant Overtime Statement 23 99 Recreation Contributed Projects Statement 24 100 Contributed Projects Statement 25 101 Special Projects Statement 26 102 Parking Ramp Statement 27 103 Confiscated Property Statement 28 104 Housing Mortgage Statement 29 105 MIF Medtronics Statement 30 106 C.H.A.S.E Statement 31 107 Housing and Redevelopment Authority (Component Unit): Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Statement 32 109 Economic Development Authority (Component Unit): Combining Balance Sheet Statement 33 110 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 34 112 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Anoka County CDBG Statement 35 114 Parkview Villa North Statement 36 115 EDA Administration Statement 37 116 Section 8 Housing Statement 38 117 Parkview Villa South Statement 39 118 Rental Housing Statement 40 119 t t 1 1 1 1 1 1 1 1 1 I I CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Reference Page Number Debt Service Funds: Combining Balance Sheet Statement 41 122 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 42 123 Capital Project Funds: Combining Balance Sheet Statement 43 127 Combining Statement of Revenues, Expenditures and Changes in Fund Balance Statement 44 131 Enterprise Funds: Combining Balance Sheet Statement 45 136 Combining Statement of Revenues, Expenses and Changes in Retained Earnings Statement 46 137 Combining Statement of Cash Flows Statement 47 138 Water Utility Fund: Balance Sheet Statement 48 139 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 49 140 Statement of Cash Flows Statement 50 141 Sewer Utility Fund: Balance Sheet Statement 51 142 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 52 143 Statement of Cash Flows Statement 53 144 Refuse Utility Fund: Balance Sheet Statement 54 145 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 55 146 Statement of Cash Flows Statement 56 147 Liquor Fund: Balance Sheet Statement 57 148 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 58 149 Statement of Cash Flows Statement 59 150 Internal Service Funds: Combining Balance Sheet Statement 60 152 Combining Statement of Revenues, Expenses and Changes in Retained Earnings Statement 61 153 Combining Statement of Cash Flows Statement 62 154 Central Garage Fund: Balance Sheet Statement 63 155 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 64 156 Statement of Cash Flows Statement 65 157 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS r r Reference Page Number Energy Management Fund: Balance Sheet Statement 66 158 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 67 159 Statement of Cash Flows Statement 68 160 Data Processing Fund: Balance Sheet Statement 69 161 ' Statement of Revenues, Expenses and Changes in Retained Earnings Statement 70 162 Statement of Cash Flows Statement 71 163 Insurance Fund: Balance Sheet Statement 72 164 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 73 165 Statement of Cash Flows Statement 74 166 Compensated Absences Fund: , Balance Sheet Statement 75 167 Statement of Revenues, Expenses and Changes in Retained Earnings Statement 76 168 Statement of Cash Flows Statement 77 169 Trust and Agency Funds: Fiduciary Funds: r Combining Balance Sheet Statement 78 172 Expendable Trust Fund: Statement of Revenues, Expenditures and Changes in Fund Balance Statement 79 173 Fiduciary Funds: Combining Statement of Changes in Assets and Liabilities - All Agency Funds Statement 80 174 General Fixed Assets Account Group: Comparative Schedule of General Fixed Assets - By Source Statement 81 176 Schedule of Changes in General Fixed Assets - By Function and Activity Statement 82 177 Schedule of General Fixed Assets - By Function and Activity Statement 83 178 General Long -Term Debt Account Group: Schedule of General Long -Term Debt Statement 84 180 Schedule of Debt Service Requirements to Maturity Statement 85 181 Supplementary Financial Information , Combining Schedule of Bonds Payable Exhibit 1 184 ' r r 1 1 1 1 1 i 1 1 1 1 1 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Reference Page Number III. STATISTICAL SECTION Assessed Value, Tax Capacity, and Estimated Actual Value of all Taxable Property Table 1 188 Tax Rates Table 2 189 City Tax Levy Table 3 190 Tax Levies and Tax Collections Table 4 191 Special Assessment Levies and Collections Table 5 192 General Governmental Revenues By Source Table 6 193 General Governmental Expenditures By Function Table 7 194 Principal City Officials Table 8 195 Miscellaneous Statistics Table 9 196 Principal Taxpayers Table 10 198 Computation of Legal Debt Margin Table 11 199 Computation of Direct and Overlapping Debt Table 12 200 Property Value, Construction and Bank Deposits Table 13 201 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita Table 14 202 Ratio of Annual Debt Service Expenditures For General Obligation Bonded Debt to Total General Governmental Expenditures Table 15 203 f CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Reference Page Number ' IV. SINGLE AUDIT AND OTHER REQUIRED REPORTS SECTION Independent Auditor's Report on Compliance with Minnesota , Legal Compliance Audit Guide for Local Governments 207 Independent Auditor's Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 209 Independent Auditor's Report on Compliance with Requirements Applicable to each Major Program and Internal Control over Compliance in Accordance with OMB Circular A -133 213 Schedule of Findings and Questioned Costs 219 Schedule of Expenditures of Federal Awards 237 , S l I. INTRODUCTORY SECTION This page intentionally left blank. CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL CITY OFFICIALS December 31, 1998 CITY COUNCIL Joseph Sturdevant, Mayor Gary L. Peterson Councilmember Donald G. Jolly Councilmember Robert W. Ruettimann Councilmember Marlaine Szurek Councilmember CITY MANAGER Walter Fehst FINANCE DEPARTMENT William J. Elrite, Finance Director Roxane M. Smith, Assistant Finance Director 3 This page intentionally left blank. I City Manager: Walter Fehst POLICE (Administered by Mayor) Police Chief: Thomas Johnson Secretary II Clerk - Typist II Police Captain Sergeants (3) Corporals (2) Patrol Officers (20) Comm. Service Officers (3) Support Services Supervisor Secretary II -A (2) FIRE Fire Chief. Charles Kewatt Secretary II (PT) 'Clerk Typist II (PT) Assistant Fire Chief Firefighters (6) Volunteer Firefighters (24) 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 II Public Works Superintendent Foreman (3) Maintenance III (1) Maintenance II (9) Maintenance I (6) Foreman - Vehicle Maintenance Maintenance III - Mechanic Maintenance III - Bodyman /Painter Admin. Assistant - Public Works 5 ADMINISTRATION City Manager's Secretary Council Secretary* Asst. To City Manager Special Projects Coordinator Assessing Accounting Clerk II Clerk- Typist II (PT) RECREATION Recreation Director Clerk- Typist II Senior Citizen Coordinator Recreation Program Coordinator (2) Head Custodian Custodian II (5 PT) Custodian I (1 PT) Commissions & Boards: Charter EDA Police & Fire Civil Service Traffic Telecommunications Planning & Zoning Human Services Park & Recreation Library FINANCE Finance Director /City Clerk/Treasurer: William Elrite Secretary II (PT) Assistant Finance Director Accounting Coordinator Payroll /Accounting Clerk Utilities Accounting Clerk II Utilities Accounting Clerk I Liquor Accounting Clerk II (2 PT) Switchboard Operator /Receptionist Meter Reader (2 PT) Liquor Operations Manager Asst. Liquor Operations Manager (2) Liquor Store Supervisor (4) Retail Clerks (17 PT) MIS Coordinators (2) COMMUNITY DEVELOPMENT Community Development Director: Kenneth Anderson Secretary II Secretary II Building Official Planner Housing Coordintor FSS Coordinator Occupancy Specialist *Also serves in the capacity of Deputy City Clerk under the City Manager. This page intentionally left blank. CITY OF COLUMBIA HEIGHTS 590 40TH AVENUE N.E., COLUMBIA HEIGHTS, MN 55421-3878 (612) 782 -2800 TDD 782 -2806 June 1, 1999 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, 1998 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 -133 and a Minnesota Legal Compliance Audit. Information related to this single audit and compliance audit, including the Schedule of Expenditures of Federal Awards, 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. THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER 7 This page intentionally left blank. 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. During 1998, one site had been acquired and the home will be demolished in early 1999. Street construction projects in zone #3 was undertaken in 1998 as part of an ongoing street rehabilitation program. The Police Department continued to apply for and receive federal grants from the Department of Justice to assist in their community policing efforts. During 1998, Medtronic Corporation completed all phases 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. One loan application was considered for board action in 1998 from the HRA Business Revolving Loan Fund. This application was approved with the monies to be used to locate a law office in a remodeled residential structure on Central Avenue. MAJOR INITIATIVES For the Year The Public Works Department spent a busy construction year on street rehabilitation projects in zone #3. 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. The Police Department increased their community policing efforts with the assistance of various grants. This program continued to grow through neighborhood picnics, landlord training, McGruff House program, and a very creative and successful graffiti cleanup program. The departments relationship with key components of the community continued to expand. The continued work with the local school district, the support and involvement with Values First, and the continued use of programs such as D.A.R.E., Project Safety Net, and a new truancy initiative assisted with this ongoing development. As a result of the efforts of the department, crime statistics are down 16% from 1997. Z For the Future Recodification of Cites During 1998, staff requested proposals from various organizations for the recodification and publication of the City Code. At the September 28, 1998, City Council meeting, staff was authorized to enter into a contract with the League of Minnesota Cities for the recodification and publication of the City Code. Tentative date for completion of the recodification is August 30, 1999. Comprehensive Plan Update The City of Columbia Heights is in the process of updating its Comprehensive Plan which is a document that lays out goals and policies used by City officials to guide decision - making. It covers many aspects of City government, including: land use, housing, public facilities, transportation, parks, sidewalks and trails, population and employment, and community image. The City is on schedule to complete the Comprehensive Plan update early in 1999. The revised plan will be submitted on or before June 30, 1999. Grants In December, 1998, the Metropolitan Council informed the City of Columbia Heights that we had received a grant in the amount of $575,000 from the Livable Communities Demonstration Account. The intent of this application was to provide a source of funding to help stimulate a proposed residential townhouse development project near downtown Columbia Heights. The concept for this project was proposed during the Minnesota Design Team visit in early May, 1998. This development will provide a combination of owner - occupied townhouse units, rental units, and senior units. A second component of the application which received funding was a request for $30,000 to be used for the preparation of a Master Plan for downtown Columbia Heights. The geographic focus of this plan will be between 37`h Avenue NE and 43`d Avenue NE, primarily along Central Avenue. The Master Plan will consider a variety of issues, including: potential sites for redevelopment; design themes for such things as uniform street lighting and plantings; and, potential linkages and amenities which will enhance the pedestrian environment in downtown Columbia Heights. Preparation of this plan is expected to begin during the late winter or in early spring of 1999. 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. 10 In addition, the government maintains extensive budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the general fund and certain special revenue funds are included in the annual appropriated budget. The level of budgetary control, the level at which expenditures cannot legally exceed the appropriated amount, is at the fund level. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. General Government Functions Revenues for City general government functions (General, Special Revenue, Debt Service and Capital Project Funds) during 1998 totaled $13,655,431, which is an increase of 11.66% from 1997. Property taxes received for the City produced 33% of general revenues compared to 37% in 1997. 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 1997 Taxes $4,449,833 33% ($39,739) Special assessments 543,108 4% 6,965 Licenses and permits 289,411 2% 86,878 Intergovernmental 5,389,060 39% 1,086,429 ' Charges for services 1,167,676 9% 244,191 Fines and forfeitures 121,858 1% (5,216) Investment income 767,127 5% 18,754 Otherrevenue 927,358 7% 27,268 Total revenues $13,655,431 100% $1,425,530 The increase in licenses and permits revenue is due primarily to an increase in the building and moving permits. This increase is attributable to the increase in building permits due in part to the remodel and additions to ISD #13 school buildings. The increase in intergovernmental revenue is due to increases in existing grants or additional federal, state or local grants. Increases in existing grants during 1998 occurred in Municipal State Aid from the State of Minnesota for construction projects and Section 8 funding from HUD. New grants during 1998 include the MIF grant from the State of Minnesota for trade and economic development and a local planning grant from the Metropolitan Council. The increase in charges for services is due in part to full repayment of the ACCAP loan to the Anoka County CDBG program. On this loan, the outstanding principal has been shown both as a loan receivable and as a deferred revenue and the revenue on the program has been recognized as the principal was repaid. 1 11 The expenditures for City general government functions (General, Special Revenue, Debt Service, and Capital Projects Funds) during 1998 totaled $13,359,744 which is an increase of 9.39% from 1997. The total expenditures for major City functions and their changes from last year are shown below: Amount of Increase Percent (Decrease) Expenditure Function Amount of Total from 1997 General government $1,449,476 11% $52,347 Public safety 2,675,544 20% 133,234 Public works 917,546 7% (158,136) Sanitation 116,816 1 % 32,565 Parks and recreation 1,223,121 9% 21,325 Library 471,240 3% 43,882 Other & contingencies 2,383,002 18% 971,333 Capital outlay 2,708,740 20% 112,721 Debt service 1,414,259 11% (62,873) Total expenditures $13,359,744 100% $1,146,398 The increase in other expenditures and contingencies is due in part to an increase in expenditures in the Municipal State Aid on construction projects and a grant to Medtronics reimbursed by the State of Minnesota MIF for trade and economic development. General Fund Balance The fund balance of the General Fund increased by $683,637 or 16.8 %. The total fund balance of $4,744,231 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, refuse utilities and municipal liquor operations. Total sales from the City's off -sale liquor locations amounted to $6,367,689 in 1998. This resulted in a total net operating income of $457,162. Water and refuse utilities experienced operating income increases during 1998. The sewer utility experienced an operating loss during the year. The Water Utility Fund experienced an operating income of $76,165 during the year. The Refuse Utility Fund experienced an operating income of $109,141 and the Sewer Utility Fund experienced an operating loss of $48,642 during 1998. During the year, the City Council designated funds from the sewer, water and liquor funds for capital equipment replacement and construction. 12 Internal Service Funds The City maintains five Internal Service Funds - the Central 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. 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 an expendable trust fund for flex benefits. 13 Cash Managemen 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 6.36 %. The City's investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, deposits were either insured by federal depository insurance or collateralized. Debt Administration At December 31, 1998, the City has two debt issues outstanding. These issues included $5,324,721 of General Obligation Tax Increment Bonds. 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 HLB Tautges Redpath, 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, 1997. In order to be awarded a Certificate of Achievement, the City published an easily readable report that satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for one year only. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. 14 Acknowledgments The preparation of the Comprehensive Annual Financial Report on a timely basis was made possible by the dedicated service of the entire staff of the Finance Department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. In closing, without the leadership and support of the City Manager and City Council, preparation of this report would not have been possible. Sincerely, William J. Elrite Finance Director Roxane M. Smith Assistant Finance Director 15 This page intentionally left blank. 16 Presented to City f • Columbia f • Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 1997 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. 17 This page intentionally left blank, is II. FINANCIAL SECTION 19 This page intentionally left blank. 20 Tautges Redpath, Ltd. Certified Public Accountants and Consultants INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Columbia Heights, Minnesota We have audited the accompanying general purpose financial statements of the City of Columbia Heights, Minnesota, as of and for the year ended December 31, 1998 as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Columbia Heights, Minnesota's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above resent fairly, i p g P� p y,nall material respects, the financial position of the City of Columbia Heights, Minnesota, as of December 31, 1998, 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. As discussed in Note 20 to the general purpose financial statements, during 1998 the City of Columbia Heights, Minnesota changed its method of accounting for investments to conform with Governmental Accounting Standards Board (GASB) No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. The year 2000 supplementary information on page 66 is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and do not express an opinion on it. In addition, we do not provide assurance that the City of Columbia Heights, 4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA Telephone: 651 426 7000 Fax: 651 426 5004 HLB Tautges Redpath, Ltd. is a member of ® International. A world -wide organization of accounting firms and business advisers. 21 This page intentionally left blank. 22 Minnesota is or will become year 2000 compliant, that the City of Columbia Heights, Minnesota's year 2000 remediation efforts will be successful in whole or in part, or that parties with which the City of Columbia Heights, Minnesota does business are or will become year 2000 compliant. In accordance with Government Auditing Standards, we have also issued a report dated March 26, 1999 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, h p p as 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 26, 1999 ,i lC /S i«,..T�e,,,P� " Goa`? HLB TAUTGES REDPATH, LTD. Certified Public Accountants 23 This page intentionally left blank. 24 GENERAL PURPOSE FINANCIAL STATEMENTS These general purpose financial statements are part of the Comprehensive Annual Financial Report, presenting only aggregate data by fund type and account group, together with notes to the financial statements, and constitutes "fair presentation in conformity with generally accepted accounting principles." It is felt that these general purpose financial statements will be a benefit to users requiring less detailed information about our City's finances. CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINED BALANCE SHEET- ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1998 ' With Comparative Totals For December 31, 1997 Governmental Fund Types Special Debt Capital ' Assets General Revenue Service Project Cash and investments $4,590,706 $3,076,716 $1,565,655 $4,874,496 , Receivables: Accounts 4,175 35,072 - 194 Special assessments - - - 691,627 Taxes 209,786 9,412 74,011 - Interest 40,464 22,033 9,153 45,582 Loans - 127,857 - 3,506 Due from other governmental units 64,978 164,723 - 4,782 , Due from other funds 260,341 864,951 112,095 - Prepayments 11,632 1,145 - Inventory, at cost - - - _ Real estate held for resale - 99,943 - 74,600 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 $5,182,082 $4,401,852 $1,760,914 $5,694,787 1 The accompanying notes are an integral part of these financial statements. 26 Statement 1 Page 1 of 2 The accompanying notes are an integral part of these financial statements. 27 Fiduciary Proprietary Fund Types Fund Type Account Groups Totals Internal Trust and General General Long- (Memorandum Only) Enterprise Service Agency Fixed Assets Term Debt 1998 1997 $3,803,095 $1,765,949 $43,908 $ - $ - $19,720,525 $18,600,586 803,632 568 - - - 843,641 863,761 - - - - - 691,627 613,646 - - - - - 293,209 297,690 36,638 15,059 174 - - 169,103 173,992 - - - - - 131,363 287,898 334,474 - - - - 568,957 730,903 1,511,001 - - - - 2,748,388 2,104,703 59,147 73,122 - - - 145,046 90,357 650,071 74,326 - - - 724,397 748,036 - - - - - 174,543 203,713 4,259,535 371,102 - 20,390,262 - 25,020,899 23,939,390 - - - - 644,112 644,112 822,740 - - - - 6,455,965 6,455,965 6,988,844 $11,457,593 $2,300,126 $44,082 $20,390,262 $7,100,077 $58,331,775 $56,466,259 The accompanying notes are an integral part of these financial statements. 27 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1998 With Comparative Totals For December 31, 1997 Equity and other credits: Governmental Fund Types Contributed capital Special Debt Capital - General Revenue Service Project Liabilities, Equity and Other Credits Retained earnings: Liabilities: Reserved: ' Accounts payable $63,956 $148,254 $104,648 $56,970 Claims payable - - - - Accrued salaries and withholdings payable 215,632 37,441 - 1,753 Contracts payable - retained percentage - 22,934 - 13 , Capital lease payable - - - - Due to other governmental units 80,885 36,988 11,423 652 Due to other funds - 268,963 964,231 ' 1,413,626 Deferred revenue 77,078 240,680 36,500 689,518 Bonds payable - - - - Accrued interest payable Designated for subsequent years' expenditures 26,992 778,498 - Accreted interest payable - - - - Deposits 300 18,947 - - Insurance and taxes in escrow Compensated absences payable - - 232 - - - Other liabilities - - - - Total liabilities 437,851 774,439 1,116,802 2,162,532 Equity and other credits: Contributed capital - - - - Investment in general fixed assets - - - - Retained earnings: Reserved: Reserved for insurance - - - - Reserved for capital improvements - - - - Unreserved - - - - Fund balance (deficit): Reserved: Reserved for prepayments 11,632 1,145 - - Reserved for real estate held for resale - 99,943 - 74,600 Reserved for program expenditures - 499,934 - - Unreserved: Designated for subsequent years' expenditures 26,992 778,498 - 22,734 Designated for working capital 3,463,549 228,715 - - Designated for maintenance - 530,719 - - Designated for business revolving loan fund - - - - Designated for debt service - - 752,279 - Designated for abatement - - - - Designated for capital improvements - - - 315,326 Undesignated 1,242,058 1,488,459 (108,167) 3,119,595 Total equity and other credits 4,744,231 3,627,413 644,112 3,532,255 Total liabilities, equity and other credits $5,182,082 $4,401,852 $1,760,914 $5,694,787 The accompanying notes are an integral part of these financial statements. 0 Statement 1 Page 2 of 2 ' Fiduciary Proprietary Fund Types Fund Type Account Groups Totals Internal Trust and General General Long- (Memorandum Only) ' Enterprise Service Agency Fixed Assets Term Debt 1998 1997 ' $267,857 $16,855 $17,154 $ - $ - $675,694 $457,312 - 200,000 - - - 200,000 - 122,690 30,899 - - - 408,415 327,898 ' 2,776 - - - 25,723 81,071 172,822 _ - - 172,822 281,732 133,915 - - - - 263,863 266,524 ' 101,568 = - = - 2,748,388 2,104,703 1,043,776 1,291,066 - - - - 5,324,721 5,324,721 6,314,721 = 868 - - 868 1,743 _ 1,775,356 1,775,356 1,496,863 3,744 - 3,500 - - 26,491 29,388 - - - - - 232 206 ' - 471,029 - - 471,029 471,224 3,048 _ 3,048 3,562 632,550 892,473 23,702 0 7,100,077 13,140,426 13,128,013 ' 1,180,901 188,849 - - - 1,369,750 1 434 979 - - - 20,390,262 - 20,390,262 19,202,898 - 779,399 - - - 779,399 1,054,055 2,473,348 45,028 - - - 2,518,376 3,156,513 ' 7,170,794 394,377 7,565,171 6,536,457 ' _ - - - - 12,777 26,232 - - - - 174,543 140,713 - - - - - 499,934 313,039 - - - - - 828,224 873,082 - - - - - 3,692,264 3,658,752 - _ 530,719 472,710 8,996 - - - - - 752,279 922,994 7,397 ' 315,326 - - 20,380 - - 5,762,325 5,529,429 10,825,043 1,407,653 20,380 20,390,262 0 45,191,349 43,338,246 $11,457,593 $2,300,126 $44,082 $20,390,262 $7,100,077 $58,331,775 $56,466,259 The accompanying notes are an integral part of these financial statements. 29 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 Revenues: Taxes Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeits Investment income Other revenues Total revenues Expenditures: Current: General government Public safety Public works Sanitation Parks and recreation Library Other Contingencies Capital outlay Debt service Total expenditures Revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers (out) Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance - January 1, as previously stated Prior period adjustment /restatements Fund balance - January 1, as restated Fund balance - December 31 30 Governmental Fund Tvoes 1,449,476 2,675,544 917,546 116,816 1,110,339 262 6,269,983 898,259 433,664 (623,436) (189,772) 708,487 4,060,594 (24,850) 4,035,744 $4,744,231 112,782 471,240 2,382,740 592,141 3,558,903 118,062 462,330 (237,769) 224,561 342,623 3,301,450 (16,660) 3,284,790 $3,627,413 Special General Revenue $2,662,288 $613,394 289,411 - 3,474,894 1,811,164 360,759 806,917 121,858 - 237,267 179,318 21,765 266,172 7,168,242 3,676,965 1,449,476 2,675,544 917,546 116,816 1,110,339 262 6,269,983 898,259 433,664 (623,436) (189,772) 708,487 4,060,594 (24,850) 4,035,744 $4,744,231 112,782 471,240 2,382,740 592,141 3,558,903 118,062 462,330 (237,769) 224,561 342,623 3,301,450 (16,660) 3,284,790 $3,627,413 Governmental Fund Tvnes Debt Capital Service Project $1,174,151 $ - - 543,108 - 103,002 . 68,191 282,351 - 639,421 1,242,342 1,567,882 1,414,259 1,414,259 (171,917) 1,183,141 (1,183,141) 0 (171,917) 822,740 (6,711) 816,029 $644,112 2,116,599 2,116,599 (548,717) 362,192 362,192 (186,525) 3,751,069 (32,289) 3,718,780 $3,532,255 Fiduciary Fund Tvne Expendable Trust 29,166 1,296 30,462 27,448 27,448 Statement 2 Totals (Memorandum Onl 1998 1997 $4,449,833 $4,489,572 543,108 536,143 289,411 202,533 5,389,060 4,387,675 1,196,842 957,042 121,858 127,074 768,423 782,115 927,358 900,090 13,685,893 12,382,244 1,449,476 2,675,544 917,546 116,816 1,223,121 471,240 2,410,188 262 2,708,740 1,414,259 13, 387,192 3,014 298,701 0 3,014 17,491 (125) 17,366 $20,380 31 2,441,327 (2,044,346) 396,981 695,682 11,953,344 (80,635) 11,872,709 $12,568,391 1,397,129 2,542,310 1,075,682 84,251 1,201,796 427,358 1,497,077 920 2,596,019 1,477,132 12,299,674 82,570 3,101,370 (2,786,015) 315,355 397,925 11,555,419 11,555,419 $11,953,344 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, 1998 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeits Investment income 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, as previously stated Prior period adjustment /restatements Fund balance - January 1, as restated Fund balance - December 31 General Over (under) Budget Actual Budget $2,659,289 189,350 3,399,709 329,675 120,000 150,000 30,820 6,878,843 1,602,789 2,839,242 1,088,839 128,058 1,243,233 21,000 6,923,161 104,749 7,027,910 $2,662,288 289,411 3,474,894 360,759 121,858 237,267 21,765 7,168,242 1,426,664 2,668,271 895,707 114,011 1,105,981 262 6,210,896 59,087 6,269,983 $2,999 100,061 75,185 31,084 1,858 87,267 (9,055) 289,399 (176,125) (170,971) (193,132) (14,047) (137,252) (20,738) (712,265) (45, 662) (757,927) (149,067) 898,259 1,047,326 ' 436,032 (623,436) (187,404) ($336,471) 433,664 (623,436) (189,772) 708,487 4,060,594 (24,850) 4,035,744 $4,744,231 The accompanying notes are an integral part of these financial statements. 32 (2,368) (2,368) $1,044,958 it Special Revenue 468,195 2,719,007 3,187,202 974,509 4,161,711 (224,298) 398,956 (223, 657) 175,299 ($48,999) 471,240 2,165,179 2,636,419 563,377 3,199,796 3,045 (553,828) (550,783) (411,132) (961,915) 83,759 308,057 398,956 (234,769) 164,187 247,946 2,108,959 (14,814) 2,094,145 $2,342,091 (11,112) (11,112) $296,945 Budget $3,273,626 189,350 6,021,350 932,810 120,000 208,210 70,910 10,816,256 1,602,789 2,839,242 1,088,839 128,058 1,243,233 468,195 2,719,007 21,000 10,110,363 1,079,258 11,189, 621 (373,365) 834,988 (847,093) (12,105) (385,470) Totals (Memorandum Only) 1998 Actual $3,275,682 289,411 5,012,311 1,101,419 121,858 396,523 254,593 10,451,797 1,426,664 2,668,271 895,707 114,011 1,105,981 471,240 2,165,179 262 8,847,315 622,464 9,469,779 982,018 832,620 (858,205) (25,585) 956,433 6,169,553 (39,664) 6,129,889 $7,086,322 The accompanying notes are an integral part of these financial statements. 33 Statement 3 Over (under) Budget $2,056 100,061 (1,009,039) 168,609 1,858 188,313 183,683 (364,459) (176,125) (170,971) (193,132) (14,047) (137,252) 3,045 (553,828) (20,738) (1,263,048) (456,794) (1,719,842) 1,355,383 (2,368) (11,112) (13,480) $1,341,903 Over (under) Budget Actual Budget $614,337 $613,394 ($943) 2,621,641 1,537,417 (1,084,224) 603,135 740,660 137,525 58,210 159,256 101,046 40,090 232,828 192,738 3,937,413 3,283,555 (653,858) 468,195 2,719,007 3,187,202 974,509 4,161,711 (224,298) 398,956 (223, 657) 175,299 ($48,999) 471,240 2,165,179 2,636,419 563,377 3,199,796 3,045 (553,828) (550,783) (411,132) (961,915) 83,759 308,057 398,956 (234,769) 164,187 247,946 2,108,959 (14,814) 2,094,145 $2,342,091 (11,112) (11,112) $296,945 Budget $3,273,626 189,350 6,021,350 932,810 120,000 208,210 70,910 10,816,256 1,602,789 2,839,242 1,088,839 128,058 1,243,233 468,195 2,719,007 21,000 10,110,363 1,079,258 11,189, 621 (373,365) 834,988 (847,093) (12,105) (385,470) Totals (Memorandum Only) 1998 Actual $3,275,682 289,411 5,012,311 1,101,419 121,858 396,523 254,593 10,451,797 1,426,664 2,668,271 895,707 114,011 1,105,981 471,240 2,165,179 262 8,847,315 622,464 9,469,779 982,018 832,620 (858,205) (25,585) 956,433 6,169,553 (39,664) 6,129,889 $7,086,322 The accompanying notes are an integral part of these financial statements. 33 Statement 3 Over (under) Budget $2,056 100,061 (1,009,039) 168,609 1,858 188,313 183,683 (364,459) (176,125) (170,971) (193,132) (14,047) (137,252) 3,045 (553,828) (20,738) (1,263,048) (456,794) (1,719,842) 1,355,383 (2,368) (11,112) (13,480) $1,341,903 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, 1998 With Comparative Totals For The Year Ended December 31, 1997 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 Nonoperating revenues (expenses): Investment income Intergovernmental Miscellaneous revenues Interest expense Miscellaneous expenses Total nonoperating revenues (expenses) Net income (loss) before operating transfers Operating transfers: Operating transfers in Operating transfers (out) Total operating transfers Net income (loss) Credit for depreciation on contributed assets Net increase (decrease) in retained earnings Retained earnings - January 1, as previously stated Prior period adjustment /restatements Retained earnings - January 1, as restated Retained earnings - December 31 Internal Enterprise Service Funds Funds Totals (Memorandum Only) 1998 1997 $2,493,223 $880,063 $3,373,286 $3,324,771 7,613,557 45,439 7,658,996 7,360,721 10,106,780 925,502 11,032,282 10,685,492 7,724,604 1,195,378 8,919,982 8,344,922 1,581,712 112,471 1,694,183 1,792,482 206,638 151,958 358,596 370,469 , 9,512,954 1,459, 807 10, 972,761 10,507, 873 593,826 (534,305) 59,521 177,619 , 313,662 112,207 425,869 418,822 62,340 - 62,340 62,423 , 87,373 3,807 91,180 77,419 (10,706) (10,706) (15,722) (135,478) (5,340) (140,818) (149,733) , 327,897 99,968 427,865 393,209 921,723 (434,337) 487,386 570,828 ' 754,065 233,980 988,045 591,883 (1,348,526) (36,500) (1,385,026) (907,238) (594,461) 197,480 (396,981) (315,355) 327,262 (236,857) 90,405 255,473 65,229 - 65,229 65,229 392,491 (236,857) 155,634 320,702 9,278,969 1,468,056 (27,318) (12,395) 9,251,651 1,455,661 10,747,025 10,426, 323 (39,713) - 10,707,312 10,426,323 $9,644,142 $1,218,804 $10,862,946 $10,747,025 t The accompanying notes are an integral part of these financial statements. 34 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPES For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 Cash flows from operating activities: Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues Miscellaneous expenses Net cash flows from operating activities Cash flows from noncapital financing activities: Operating transfers in from other funds Operating transfers (out) to other funds Net cash flows from noncapital financing activities Cash flows from capital and related financing activities: Acquisition of fixed assets Disposition of fixed assets Interest expense Net cash flows from capital and related financing activities Cash flows from investing activities: Investment income Net increase in cash and cash equivalents Cash and cash equivalents - January 1, as previously stated Prior period adjustment /restatements Cash and cash equivalents - January 1, as restated 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) claims payable Increase (decrease) accrued salaries and withholdings payable Increase (decrease) due to other governmental units Increase (decrease) due to other funds Increase (decrease) capital lease payable Increase (decrease) accrued interest payable Total adjustments Net cash flows from operating activities Statement 5 Internal Totals Enterprise Service (Memorandum Only) Funds Funds 1998 1997 $9,602,042 $925,264 $10,527,306 $10,772,910 (8,259,585) (1,012,080) (9,271,665) (9,334,354) (875,956) (245,024) (1,120,980) (1,035,887) 149,713 3,807 153,520 139,842 (135,478) (5,340) (140,818) (149,733) 480,736 (333,373) 147,363 392,778 754,065 233,980 988,045 591,883 (1,348,526) (36,500) (1,385,026) (907,238) (594,461) 197,480 (396,981) (315,355) (240,189) (12,605) (252,794) (444,546) 54 54 (10,706) (10,706) (15,722) (240,189) (23,257) (263,446) (460,268) 314,132 115,388 429,520 413,190 (39,782) (43,762) (83,544) 30,345 3,870,195 1,822,106 5,692,301 5,661,956 (27,318) (12,395) (39,713) - 3,842,877 1,809,711 5,652,588 5,661,956 $3,803,095 $1,765,949 $5,569,044 $5,692,301 $593,826 ($534,305) $59,521 $177,619 149,713 3,807 153,520 139,842 (135,478) (5,340) (140,818) (149,733) 206,638 151,958 358,596 370,469 21,566 (238) 21,328 (49,374) 86,780 - 86,780 93,787 (613,085) (613,085) 43,005 (58,352) (9,792) (68,144) (35,570) 27,746 (4,108) 23,638 (33,116) 79,501 (30,017) 49,484 (88,236) - 200,000 200,000 - 19,943 4,447 24,390 14,654 370 - 370 14,199 101,568 - 101,568 - - (108,910) (108,910) (104,124) (875) (875) (644) (113,090) 200,932 87,842 215,159 $480,736 ($333,373) $147,363 $392,778 The accompanying notes are an integral part of these financial statements. 35 This page intentionally left blank. im CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 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 included 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. 37 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 GOVERNMENTAL FUND TYPES General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of all general long -term debt principal, interest, and related costs. Capital Project Funds - Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major facilities, other than those financed by Proprietary Funds. PROPRIETARY FUND TYPES Enterprise Funds - Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Internal Service Funds - Internal Service Funds are used to account for the costs of providing goods or services to other departments or agencies of the City. Charges to other City departments are made to support these activities. FIDUCIARY FUNDS Agency Funds - Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, other governmental units, or other funds. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Trust Funds - Trust Funds are used to account for assets held by the City in a trustee capacity. ACCOUNT GROUPS General Fixed Assets Account Group - This account group is used to account for all of the fixed assets of the Governmental Fund Types. General Lone -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. 1.91 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 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 investment income. Expenditures are recognized under the modified accrual basis of accounting when a liability is incurred, except for principal and interest on general long -term obligations which are recognized when due. Compensated absences are considered expenditures when paid to employees. Proprietary Funds are accounted for using the "capital maintenance" measurement focus and are reported on the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recorded at the time liabilities are incurred. Governmental Accounting Standards Board ' (GASB) Statement #20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that Use Proprietary Funds provides proprietary activities with a choice of authoritative guidance issued after November 30, 1989. The City of Columbia Heights has elected to follow GASB pronouncements exclusively after that date. D. BUDGETARY DATA The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing on January 1 of the following year. At least one special Council meeting is conducted to obtain public comments as required by the State Truth in Taxation Law. 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. 39 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 Amounts shown in the financial statements represent the original budgeted amounts and the following increases in appropriations: General Fund Special Revenue Funds: Cable Television Library State Aid Construction Police/Fire Contingency EDA: Parkview Villa North Totals $9,916 7,072 1,746 1,485 (30,000) 449 ($9,332) The City did not budget for all Special Revenue Funds and, accordingly, the applicable columns of the Combined Statement of Revenues, 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: Special Revenue Funds: Budgeted funds Unbudgeted funds: Cops MORE 96 Grant Juvenile Justice Grant Local Law Enforcement Block Grant Cops Overtime Grant Recreation Contributed Projects Contributed Projects Special Projects Parking Ramp Confiscated Property Housing Mortgage MIF Medtronics CHASE Total Special Revenue Funds Fund Balance Financing Fund Balance December 31, Total Total Sources December 31, 1997, as restated Revenues Expenditures (Uses) 1998 $2,094,145 $3,283,555 $3,199,796 $164,187 $2,342,091 12,722 27,728 36,992 - 3,458 - 9,551 8,679 872 1,995 9,998 12,441 (448) - 30,000 31,007 (1,007) 44,601 27,309 32,231 (3,000) 36,679 13,789 5,899 4,608 - 15,080 - 53,159 12,531 60,374 101,002 643,116 15,271 - - 658,387 2,325 40 3,538 (1,173) 470,341 1,558 - 471,899 - 135,377 134,654 - 723 1,756 77,520 82,426 3,000 (150) $3,284,790 $3,676,965 $3,558,903 $224,561 $3,627,413 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 fair value, based upon quoted market prices. Investment income is 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. HE CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 Special Assessments Receivable - Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are recorded as receivables upon certification of each project. The corresponding revenue from the delinquent (unremitted) and deferred (certified but not yet levied) special assessments receivable is deferred until the year it becomes available (collected within 60 days of year -end). Inventories - Inventories are valued at cost, which approximates market, using the first -in, first -out basis. Real Estate Held for Resale - Real estate is valued at the lower of cost or market. Fixed Assets: General Fixed Assets Account Group - All purchased fixed assets are valued at historical cost or estimated historical cost. The costs of property, plant, and equipment are accounted for as current expenditures of the Governmental Fund Types in the year purchased. The City has elected not to record infrastructure fixed assets in its account records. No depreciation has been provided on general fixed assets. Proprietary Fund Types - Fixed assets of the Proprietary Funds are stated at historical cost, estimated historical cost, or in the case of contributions, at fair market value at the time received. Depreciation has been provided using the straight -line method over the estimated useful lives of assets as follows: ' Buildings 40 -50 years Machinery and equipment 3 -20 years Improvements 5 -20 years ' Distribution system 50 -100 years Depreciation on contributed assets charged to operations is closed to the contributed equity account. ' LIABILITIES Long -term liabilities expected to be financed from Governmental Funds are accounted for in the General Long -Term Debt Account Group, not in the Governmental Funds. ' The liability for the vested portion of accumulated vacation and sick leave 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. 41 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 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. F. REVENUES AND EXPENDITURES REVENUES Property, T� - 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. 42 t CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 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 tTotal columns on the combined statements are captioned "Totals (Memorandum Only)" to indicate that they are presented only to facilitate financial analysis. Data in these columns does not present cash flow or results of operations in conformity with generally accepted accounting principles nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of these data. H. COMPARATIVE DATA Comparative total data for the prior year has been presented in the accompanying financial statements ' to provide an understanding of changes in the City's financial position and operations. Comparative data for each fund type has not been presented in the combined statements since their inclusion could make the statements unduly complex and difficult to read. 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. J. USE OF ESTIMATES The preparation of financial statements in accordance with generally accepted accounting principles (GAAP) requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. 1 43 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 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, 1998, the market value of the City's deposits was $2,204,289 and the bank balance was $2,626,756. The entire bank balance was insured or collateralized by securities held by the City's agent in the City's name. INVESTMENTS The City may also invest idle funds as authorized by Minnesota Statutes as follows: direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities, or organizations created by an act of congress, excluding mortgage- backed securities defined as high risk; shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described above, general obligation tax - exempt securities, or repurchase or reverse repurchase agreements; general obligations of the State of Minnesota or any of its municipalities; bankers' acceptances of United States' banks eligible for purchase by the Federal Reserve System; commercial paper issued by United States' corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less; repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker - dealers; and future 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. .. r CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 1 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, 1998 are as follows: U.S. Government Securities (including securities insured by the U.S. Government) Shared investment pools Total investments Deposits Cash on hand Total cash and investments Custodial Credit Risk Category 1 2 3 Carrying Amount At Fair Value $11,825,070 $ - $ - $11,825,070 Note 3 LEGAL COMPLIANCE /BUDGETS I - nip 17,511,036 2,204,289 L - Total actual expenditures exceeded budgeted expenditures (appropriations) in the following funds for 1998: Budgeted Actual Over Expenditures Expenditures Budget Special Revenue Funds: Federal Police Grant $84,240 $135,666 $51,426 Community Development 222,086 270,519 48,433 Section 8 295,474 771,277 475,803 Expenditures in the Federal Police Grant Fund and Community Development Fund are over budget because activities budgeted in other funds are actually accounted for in this fund and the budget was not amended for this change. Revenues and expenditures in the Section 8 Fund are significantly over budget because of the increase in Section 8 activity. The budget was not amended for this change. 45 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 Note 4 INTERGOVERNMENTAL RECEIVABLES Intergovernmental receivables at December 31, 1998 presented as due from other governmental units are composed of the following: General Fund: City of St. Anthony Anoka County City of Hilltop City of Minneapolis Independent School District #13 Total General Fund Special Revenue Funds: Municipal State Aid - State of Minnesota Municipal State Aid - City of Minneapolis DARE - State of Minnesota FAST COPS - Federal Department of Justice Cops MORE 96 Grant - Federal Department of Justice Juvenile Justice Grant - State of Minnesota Local Law Enforcement Block Grant - Federal Department of Justice CHASE - State of Minnesota EDA (Component Unit): Anoka County CDBG - Anoka County Economic Development Authority - Metropolitan Council Section 8 - Public Housing Agencies Total Special Revenue Funds Capital Projects Funds: Capital Improvement Projects - City of New Brighton Capital Improvement Projects - City of St. Anthony Total Capital Projects Funds Enterprise Funds: Sewer - Metropolitan Council Environmental Services Sewer - City of Hilltop Liquor - State of Minnesota Total Enterprise Funds Total Intergovernmental Receivables .1 $369 28,168 10,622 368 25,451 64,978 32,349 22,378 1,425 691 27,728 2,106 9,998 8,413 14,530 1,137 43,968 164,723 1,638 3,144 4,782 329,838 3,895 741 334,474 $568,957 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 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, 1998, a balance of $42,005 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, 1998, a balance of $278,904 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, 1998 consist of the following: Sheffield Redevelopment $3,506 HRA: Business Revolving Loans 64,924 Mortgage Loans 47,933 EDA: Anoka County CDBG 15,000 Total $131,363 The HRA and EDA loans relate primarily to personal residences of lower income individuals under a Community Development Program. 47 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 Note 6 INTERFUND RECEIVABLES AND PAYABLES Individual fund interfund receivables and payables at December 31, 1998 consist of the following: Interfund Interfund Receivables Payables General Fund $260,341 $ - Special Revenue Funds: Municipal State Aid Community Development Cops MORE 96 Juvenile Justice Grant Local Law Enforcement Block Grant Cops Overtime Grant Parking Ramp Confiscated Property Housing Mortgage Rental Housing HRA Debt Service Funds: Tax Increment Bonds MURP Capital Projects Funds: TIF District #2 Sheffield Redevelopment General Government Buildings PIR Enterprise Funds: Water Utility Water Construction Sewer Utility Refuse Utility Liquor - 172,186 - 28,985 - 22,838 - 1,434 - 10,446 - 1,007 408,027 - - 880 446,352 - - 10,572 10,572 20,615 112,095 854,379 - 109,852 - 2,243 - 853,191 - 1,950 - 556,242 101,568 - - 101,568 684,191 - 556,242 - 169,000 - $2,748,388 $2,748,388 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 Note 7 INTERFUND TRANSFERS From To Amount Purpose Operating: General Community Development $216,216 Building inspections General Federal Police Grant 84,240 Federal grant match General Capital Improvements -Parks 50,000 Park improvements General Infrastructure Replacement 50,000 Fund future improvements General Capital Equipment Replacement - General 50,000 Replacement fixed assets General Energy Management 88,480 Energy improvements General Data Processing 19,500 Fund data processing services General Police/Fire Contingency 65,000 Police/Fire pension contribution Municipal State Aid General 30,000 State aid street maintenance Cable Television General 47,164 Administrative labor Library General 7,524 Administrative labor Tax Increment Bonds Tax Increment Sheffield 2,031 Debt service Tax Increment Bonds Tax Increment Bonds 1990 360 Debt service Tax Increment Bonds Tax Increment Refunding 1991 1,180,750 Debt service Water Utility General 68,281 Administrative labor Water Utility Capital Equipment Replacement -Water 25,000 Replacement fixed assets Water Utility Data Processing 19,500 Fund data processing services Sewer Utility General 68,281 Administrative labor Sewer Utility Capital Equipment Replacement -Sewer 25,000 Replacement fixed assets Sewer Utility Data Processing 19,500 Fund data processing services Refuse Utility General 107,182 Administrative labor Refuse Utility Data Processing 19,500 Fund data processing services Liquor General 69,323 Administrative labor Liquor Data Processing 31,000 Fund data processing services Liquor Capital Equipment Replacement - General 90,000 Replacement fixed assets Liquor Capital Equipment Replacement- Liquor 21,235 Replacement fixed assets Liquor Infrastructure Replacement 50,000 Fund future improvements Liquor DARE Program 5,000 Fund DARE program Water Capital Construction Water Utility 573,636 Project closure Water Capital Construction Special Project Revenue 46,894 Transfer antenna revenue Sewer Capital Construction Sewer Utility 109,194 Project closure Central Garage Capital Equipment Replacement- Garage 4,000 Replacement fixed assets Central Garage Data Processing 19,500 Fund data processing services Data Processing Capital Equipment Replacement -Data Processing 13,000 Replacement fixed assets Recreation Contributed Projects CHASE 3,000 Funding provided by contributions Community Development General 7,180 Administrative labor EDA -Anoka County CDBG General 2,132 Administrative labor EDA - Parkview Villa North General 7,130 Administrative labor EDA - Parkview Villa North Special Project Revenue 13,480 Transfer antenna revenue EDA- Administration General 9,917 Administrative labor EDA - Administration EDA -Anoka County CDBG 17,500 HOME local match EDA- Section 8 General 5,960 Administrative labor EDA - Parkview Villa South General 3,590 Administrative labor HRA Community Development 11,000 Fund activities HRA Sheffield Redevelopment 72,192 Guaranteed funding $3,429,372 10 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 Note 8 FIXED ASSETS The following is a summary of changes in the General Fixed Assets Account Group during the fiscal year: Balance Balance January 1, December 31, 1998 Additions Retirements 1998 Land $3,400,281 $ - $7,900 $3,392,381 Buildings 8,205,670 119,275 - 8,324,945 Improvements other than buildings 1,541,123 693,337 - 2,234,460 Machinery and equipment 6,055,824 509,694 127,042 6,438,476 Total general fixed assets $19,202,898 $1,322,306 $134,942 $20,390,262 1 The following is a summary of Proprietary Fund Type fixed assets at December 31, 1998: Water Sewer Refuse Total Utility Utility Utility Liquor Enterprise Land I Internal Total $ - Service Proprietary $86,169 Land $45,223 $36,586 $ - $4,360 $86,169 $ - $86,169 Buildings 459,958 55,612 6,000 181,631 703,201 750,324 1,453,525 Improvements other than buildings 3,250,768 3,512,315 2,890 103,409 6,869,382 436,460 7,305,842 Machinery and equipment 250,436 475,916 10,557 356,838 1,093,747 171,295 1,265,042 Construction in process 107,010 136,664 - - 243,674 - 243,674 Total 4,113,395 4,217,093 19,447 646,238 8,996,173 1,358,079 10,354,252 Less accumulated depreciation 1,905,343 2,317,150 9,543 504,602 4,736,638 986,977 5,723,615 Net fixed assets $2,208,052 $1,899,943 $9,904 $141,636 $4,259,535 $371,102 $4,630,637 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, 1998 amounted to $126,663. The City also has leased premises for its Top Valu II liquor store under a five -year lease that originally expired 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, 1998 amounted to $62,673. 50 I CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 Future minimum rental payments are as follows: Top Valu Top Valu II 1999 $88,785 $42,628 2000 - 42,628 2001 - 42,628 2002 - 42,628 2003 - 7,104 Total $88,785 $177,616 iNote 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 ' 1999 $113,916 $6,574 $120,490 2000 58,906 1,339 60,245 Total $172,822 $7,913 $180,735 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 (609,200) Net $101,581 1 51 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 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 5.30 - 5.80% 12/1/91 3/1/02 2,925,000 $5,324,721 Annual debt service requirements to maturity for general obligation bonds including interest of $4,699,076 are as follows: Fiscal Year Ending 1999 $1,083,167 2000 986,980 2001 897,270 2002 1,111,380 2003 920,000 Thereafter 5.025.000 Totals $10,023,797 At December 31, 1998, a total of $644,112 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. 52 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 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 Redevelopment Authorizing Law HRA (Minnesota Statutes Sections 462.545 and 462.585) Duration of District August 1, 2009 Original Tax Capacity $170,771 Current Tax Capacity (for taxes collectible in 1998) 1 $747,727 Captured Tax Capacity Retained $576,956 Bonds Issued $28,434,721 Principal Payments $23,310,000 Bonds Outstanding at December 31, 1998 $5,324,721 B. 1984 Modification to the Downtown CBD Revitalization Plan C7 _ Type of District Redevelopment Authorizing Law HRA (Minnesota Statutes Sections 462.545 and 462.585) Duration of District August 1, 2009 Original Tax Capacity $37,598 Current Tax Capacity (for taxes collectible in 1998) $50,152 Captured Tax Capacity Retained $12,554 Bonds Issued - Principal Payments Bonds Outstanding at December 31, 1998 - C. 1984 University Avenue Redevelopment C8 Type of District Redevelopment Authorizing Law HRA (Minnesota Statutes Sections 462.545 and 462.585) Duration of District August 1, 2009 Original Tax Capacity $25,176 Current Tax Capacity (for taxes collectible in 1998) $112,026 Captured Tax Capacity Retained $86,850 Bonds Issued $1,070,000 Principal Payments $1,070,000 Bonds Outstanding at December 31, 1998 - ' 53 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 D. 1989 Multi -Use Redevelopment Plan K2 Type of District Redevelopment Authorizing Law HRA (Minnesota Statutes Sections 462.545 and 462.585) Duration of District October 4, 2014 Original Tax Capacity $12,282 Current Tax Capacity (for taxes collectible in 1998) $33,744 Captured Tax Capacity Retained $21,462 Bonds Issued - Principal Payments Bonds Outstanding at December 31, 1998 - E. 1995 Sheffield Tax Increment Financing District M8 Type of District Redevelopment Authorizing Law HRA (Minnesota Statutes Sections 469.174 to 469.179 inclusion as amended) Duration of District December 31, 2022 Original Tax Capacity $34,679 Current Tax Capacity (for taxes collectible in 1998) $57,716 Captured Tax Capacity Retained 8,718 Prior Year Tax Capacity Adjustment $31,755 Bonds Issued - Principal Payments - Bonds Outstanding at December 31, 1998 - F. 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 $119,890 Current Tax Capacity (for taxes collectible in 1998) $316,658 Captured Tax Capacity Retained 196,768 Bonds Issued - Principal Payments - Bonds Outstanding at December 31, 1998 - 54 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 G. Housing Redevelopment District No. 1 P3 Type of District Redevelopment Authorizing Law Minnesota Statutes Section 469.174 Duration of District September 8, 2002 Original Tax Capacity $38,201 Current Tax Capacity (for taxes collectible in 1998) $38,245 Captured Tax Capacity Retained 44 Bonds Issued _ Principal Payments _ Bonds Outstanding at December 31, 1998 - H. Housing Redevelopment District No. 1 P4 Type of District Redevelopment Authorizing Law Minnesota Statutes Section 469.174 Duration of District September 8, 2002 Original Tax Capacity $1,572 Current Tax Capacity (for taxes collectible in 1998) $1,609 Captured Tax Capacity Retained 37 Bonds Issued _ Principal Payments _ Bonds Outstanding at December 31, 1998 - Changes in Long -Term Liabilities - During the year ended December 31, 1998, the following changes occurred in liabilities reported in the General Long -Term Debt Account Group: Balance Balance City January 1 Additions Reductions December 31 General Obligation Tax Increment Bonds: Principal $6,314,721 $ - ($990,000) $5,324,721 Accreted interest 1,496,863 278,493 - 1,775,356 Total City $7,811,584 $278,493 ($990,000) $7,100,077 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, 1998, accreted interest of $1,775,356 was included in general long -term debt for the 1990 Tax Increment Capital Appreciation Bonds. 55 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 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, 1998 there were four series of Revenue Bonds outstanding, with an aggregate principal amount payable of $15,064,000. Note 12 FUND EOUITY The following funds had a fund deficit as of December 31, 1998: Debt Service Funds Multi -Use Redevelopment Plan 108,167 Capital Projects Funds: Sheffield Redevelopment Fund TIF District #2 Deficit Special Revenue Funds: 1,327 Municipal State Aid $246,551 Community Development 41,378 Local Law Enforcement Block Grant 448 Cops Overtime Grant 1,007 Confiscated Property 1,173 CHASE 150 Debt Service Funds Multi -Use Redevelopment Plan 108,167 Capital Projects Funds: Sheffield Redevelopment 681,186 TIF District #2 2,243 General Government Buildings 1,327 PIR 556,557 Internal Service Funds: Energy Management 60,966 The City will finance these deficits through external or internal sources in future years. 56 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 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, Sewer and Liquor Enterprise Funds and the Central Garage and Data Processing Internal Service Fund represents funds set aside to pay for appropriate future capital replacement /construction projects. Reservations of retained earnings are summarized as follows at December 31, 1998: Internal Enterprise Service Total Reserve for capital replacement /construction: Water Utility Fund $246,672 $ - $246,672 Sewer Utility Fund 2,205,098 - 2,205,098 Liquor Fund 21,578 - 21,578 Central Garage Fund - 37,194 37,194 Data Processing Fund 7,834 7,834 Reserve for insurance - 779,399 779,399 Total $2,473,348 $824,427 $3,297,775 _ B. RESERVATION OF FUND BALANCES Reserved for Prepayments - This reserve represents financial resources used for prepayment of subsequent years expenditures. Reserved for Real Estate Held for Resale - This amount represents a financial resource which is not currently available. Reserved for Program Expenditures - This amount represents financial resources which have specific restrictions for future use. Reservations of fund balances at December 31, 1998 are summarized as follows: Reserve for prepayments $12,777 Reserve for real estate held for resale 174,543 Reserve for program expenditures 499,934 Total $687,254 57 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 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. 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. Designated for Capital Improvements — This amount represents funds set aside by the City to provide for future capital improvements. Designations for unreserved fund balances at December 31, 1998 are summarized as follows: i Special Debt Capital General Revenue Service Projects Total Designated for debt service $ - $ - $752,279 $ - $752,279 Designated for subsequent years' expenditures 26,992 778,498 - 22,734 828,224 Designated for working capital 3,463,549 228,715 - 3,692,264 Designated for PVVS maintenance - 530,719 - 530,719 Designated for capital improvements - - 315,326 315,326 Total designated unreserved fund balance $3,490,541 $1,537,932 $752,279 $338,060 $6,118,812 i CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 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, 1998 is as follows: Note 14 PROPRIETARY FUNDS' CONTRIBUTED CAPITAL This balance represents the cost of property contributed to the Enterprise Funds and Internal Service Funds by the City, less depreciation thereof charged to operations. Changes occurring in the account during the year were as follows: Water Water Sewer Refuse Utility Utility Garage Utility Utility Utility Liquor Total Operating revenues $1,290,981 $1,113,112 $1,334,998 $6,367,689 $10,106,780 Depreciation expense 78,186 102,514 1,076 24,862 206,638 Operating income (loss) 76,165 (48,642) 109,141 457,162 593,826 Net income (loss) (1,943) (54,443) 110,266 273,382 327,262 Total operating transfers (134,675) (87,781) (126,682) (245,323) (594,461) Property, plant and equipment additions (112,519) (122,336) (2,349) (2,985) (240,189) Net working capital 809,952 2,618,400 1,335,058 1,481,189 6,244,599 Net cash provided by operating activities 155,124 54,156 (362,234) 633,690 480,736 Total assets 3,220,960 4,871,272 1,346,448 2,018,913 11,457,593 Total equity - contributed 703,241 477,660 - - 1,180,901 Total equity - retained earnings 2,314,763 4,361,592 1,344,962 1,622,825 9,644,142 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 $729,535 $516,595 $188,849 $1,434,979 Less: Depreciation on contributed assets (26,294) (38,935) - (65,229) Balance - end of year $703,241 $477,660 $188,849 $1,369,750 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. 59 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 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 (651)296 -7460 or 1- 800 - 652 -9026. 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 8.75% and 4.75 %, 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: 11.43% for Basic Plan PERF members, 5.18% 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 1996 1997 1998 M61 PERF PEPFF $139,722 $162,814 138,673 162,502 157,540 181,024 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 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 (651)296 -7460 or 1- 800 - 652 -9026. 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 61 6/30/98 Entry Age Level Percent Closed 12 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% CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 C. THREE YEAR TREND INFORMATION D. REQUIRED SUPPLEMENTARY INFORMATION Annual Percentage Net Pension of APC Pension Year Ended Cost (APQ Contributed Obligation Fire Account 6/30/96 N/A N/A N/A 6/30/97 $45,389 100% $0 6/30/98 $0 100% $0 Police Account 6/30/96 N/A N/A N/A 6/30/97 $36,931 100% $0 6/30/98 $25,570 100% $0 D. REQUIRED SUPPLEMENTARY INFORMATION 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. 62 (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 6/30/96 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 6/30/98 $2,366,586 $1,858,181 $508,405 127% $0 N/A Police Account 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% 6/30/98 $4,479,321 $4,734,760 ($255,439) 95% $122,114 209% 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. 62 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 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 income and discretionary contributions from the City of Columbia Heights. For 1998, $54,501 of State aid was contributed to the Plan. Note 18 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 a claim in which the plaintiffs were seeking damages. A federal jury trial was conducted and the jury subsequently awarded the plaintiffs $120,000 as damages. The plaintiffs have petitioned the court for attorneys fees and costs. The City has recorded a liability of $200,000 relating to this issue which represents what the City believes to be the most probable outcome. C. FEDERAL AND STATE FUNDS Amounts received or receivable from federal and state agencies are subject to agency audit and adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of funds which may be disallowed by the agencies cannot be determined at this time although the City expects such amounts, if any, to be immaterial. IN CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 D. TAX INCREMENT DISTRICTS The City's tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which would have a material effect on the financial statements. E. CONSTRUCTION Significant construction commitments at December 31, 1998 are as follows: Note 19 RECLASSIFICATION OF FIDUCIARY FUND (POLICE /FIRE COSTS) TO SPECIAL REVENUE FUND Prior to 1998, the Police/Fire Contingency Fund was reported as an Expendable Trust Fund. For 1998, this fund has been reclassified to a Special Revenue Fund. Prior year amounts have been restated to reflect this change. Note 20 CHANGE IN ACCOUNTING PRINCIPLE The City implemented Governmental Accounting Standards Board (GASB) Statement No. 31, Accounting and Financial Reporting for Certain Investments and External Investment Pools, during 1998. GASB Statement 31 requires that investments be reported at fair value on the balance sheet with changes in the fair value of investments reported on the operating statement. The effect of implementing GASB #31 during 1998 was as follows: • Investment income was increased in 1998 by approximately $191,115. • Investment income was decreased for 1997 by approximately $120,348 which is reported as a prior period adjustment. •� Total Contract Remaining Project Number Awarded Contract 9505/9124 $70,747 $19 9505 441,728 61,137 9722 225,527 150,073 9733/9734/9738 45,872 44 9804 19,834 11,315 9807 13,000 10,983 9814/9815/9816 12,512 12,512 9817 11,550 11,550 Note 19 RECLASSIFICATION OF FIDUCIARY FUND (POLICE /FIRE COSTS) TO SPECIAL REVENUE FUND Prior to 1998, the Police/Fire Contingency Fund was reported as an Expendable Trust Fund. For 1998, this fund has been reclassified to a Special Revenue Fund. Prior year amounts have been restated to reflect this change. Note 20 CHANGE IN ACCOUNTING PRINCIPLE The City implemented Governmental Accounting Standards Board (GASB) Statement No. 31, Accounting and Financial Reporting for Certain Investments and External Investment Pools, during 1998. GASB Statement 31 requires that investments be reported at fair value on the balance sheet with changes in the fair value of investments reported on the operating statement. The effect of implementing GASB #31 during 1998 was as follows: • Investment income was increased in 1998 by approximately $191,115. • Investment income was decreased for 1997 by approximately $120,348 which is reported as a prior period adjustment. •� REQUIRED SUPPLEMENTARY INFORMATION 65 CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION YEAR 2000 ISSUE (UNAUDITED) December 31, 1998 The year 2000 issue is the result of shortcomings in many electronic data processing systems and other electronic equipment that may adversely affect the government's operations in the year 2000. The City of Columbia Heights has completed an inventory of computer systems and other electronic equipment that may be affected by the year 2000 issue and are necessary to conduct City operations. Based on this inventory, the City is in the final stages of ensuring that all equipment is year 2000 compliant. To date the following actions have been taken: • All City personal computers have been analyzed to determine if they are year 2000 compliant. Those that were not have been replaced. The following major computer systems that service the City have been reviewed and are currently year 2000 compliant: • Financial accounting software — The City's major financial records are maintained on an IBM AS400 computer operating system with Business Records Corporation's software. This computer was replaced in December of 1998 and updated with the latest version of software that is year 2000 compliant. • 911 emergency reporting system — All police, fire, and other emergency reporting and dispatching within the City are handled by the Anoka County central dispatching system. This system has been thoroughly tested and reviewed and found to be year 2000 compliant. • Traffic controlsystem — All traffic control lights in the City are on state highways. The state has verified that all of these controls are year 2000 compliant. • Police department internal records retention system — Due to the nature of police records and the problems that could be encountered, all municipalities within Anoka County formed a consortium to review the year 2000 problem. As a result, Anoka County is moving to a centralized records retention system that involves purchasing new equipment in all municipalities in Anoka County. All of this new equipment and software is year 2000 compliant. It is presently in the final stages of installation, and the City will be fully year 2000 compliant in relationship to police records prior to December 31, 1999. UNCERTAINTIES Because of the unprecedented nature of the year 2000 issue, its effects and the success of related remediation efforts will not be fully determined until the year 2000 and thereafter. Management cannot assure that the City is or will be year 2000 ready, that the City's remediation efforts will be successful in whole or in part, or that parties with whom the City does business will be Year 2000 ready. The information in this notice contains information related to the year 2000 problem and is intended to be protected by the Y2K Readiness Disclosure Act Public Law 105 -271. •e COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS 67 This page intentionally left blank. s 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." M• This page intentionally left blank. W CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND Statement 6 BALANCE SHEET December 31, 1998 With Comparative Amounts For December 31, 1997 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 Deposits 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 71 1998 $4,590,706 4,175 132,708 77,078 40,464 64,978 260,341 11,632 .$5,182,082 $63,956 215,632 80,885 77,078 300 437,851 11,632 26,992 3,463,549 1,242,058 4,744,231 $5,182,082 SSA $3,963,872 8,136 49,230 48,239 36,564 76,252 241,280 16,778 $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 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, 1998 With Comparative Actual Amounts For The Year Ended December 31, 1997 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Investment income Other revenues: Miscellaneous Proceeds from sale of land Total revenues Expenditures: General government: Council Manager Legal Finance and elections Assessing General government buildings Total general government Public safety: Police /animal /civil defense Fire Total public safety Public works: Engineering Maintenance Total public works Other departments: Sanitation Parks and recreation Contingencies Total other departments Total expenditures 30,320 500 6,878,843 194,321 347,905 204,145 562,426 129,832 220,260 1,658,889 2,144,304 706,938 2,851,242 323,365 778,524 1,101,889 128,058 1,266,832 21,000 1,415,890 7,027,910 72 21,765 7,168,242 172,179 343,322 162,547 504,972 124,337 142,119 1,449,476 1,972,413 703,131 2,675,544 270,087 647,459 917,546 116,816 1,110,339 262 1,227,417 6,269,983 (8,555) (500) 289,399 (22,142) (4,583) (41,598) (57,454) (5,495) (78,141) (209,413) (171,891) (3,807) (175,698) (53,278) (131,065) (184,343) (11,242) (156,493) (20,738) (188,473) (757,927) 15,976 6,845,204 155,345 317,829 196,095 492,009 118,579 117,272 1,397,129 1,929,187 613,123 2,542,310 392,633 683,049 1,075,682 84,251 1,111,214 920 1,196,385 6,211,506 1998 Over (under) 1997 Budget Actual Budget Actual $2,659,289 $2,662,288 $2,999 $2,505,456 189,350 289,411 100,061 202,533 3,399,709 3,474,894 75,185 3,415,694 329,675 360,759 31,084 343,821 120,000 121,858 1,858 127,074 150,000 237,267 87,267 234,650 30,320 500 6,878,843 194,321 347,905 204,145 562,426 129,832 220,260 1,658,889 2,144,304 706,938 2,851,242 323,365 778,524 1,101,889 128,058 1,266,832 21,000 1,415,890 7,027,910 72 21,765 7,168,242 172,179 343,322 162,547 504,972 124,337 142,119 1,449,476 1,972,413 703,131 2,675,544 270,087 647,459 917,546 116,816 1,110,339 262 1,227,417 6,269,983 (8,555) (500) 289,399 (22,142) (4,583) (41,598) (57,454) (5,495) (78,141) (209,413) (171,891) (3,807) (175,698) (53,278) (131,065) (184,343) (11,242) (156,493) (20,738) (188,473) (757,927) 15,976 6,845,204 155,345 317,829 196,095 492,009 118,579 117,272 1,397,129 1,929,187 613,123 2,542,310 392,633 683,049 1,075,682 84,251 1,111,214 920 1,196,385 6,211,506 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, 1998 With Comparative Actual Amounts For The Year Ended December 31, 1997 1998 Over (under) 1997 Budget Actual Budget Actual Revenues over (under) expenditures ($149,067) $898,259 $1,047,326 $633,698 Other financing sources (uses): Operating transfers in 436,032 433,664 (2,368) 421,436 Operating transfers (out) (623,436) (623,436) - (833,890) Total other financing sources (uses) (187,404) (189,772) (2,368) (412,454) Net increase (decrease) in fund balance ($336,471) 708,487 $1,044,958 221,244 Fund balance - January 1, as previously stated 4,060,594 3,839,350 Prior period adjustment /restatements (24,850) - Fund balance - January 1, as restated 4,035,744 3,839,350 Fund balance - December 31 $4,744,231 $4,060,594 73 CITY OF COLUMBIA HEIGHTS, MINNESOTA 1 GENERAL FUND Statement 8 SCHEDULE OF REVENUES - ' BUDGET AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Amounts For The Year Ended December 31, 1997 ' Revenues: Property taxes: Ad valorem Penalties and interest Total taxes Licenses and permits: Licenses Permits Total licenses and permits Intergovernmental: Federal grants: Civil defense Disaster assistance State grants: Local government aid Property tax relief Law officer training Fire training Police relief association County aid: Street maintenance County grant School district Total intergovernmental Charges for services: General government Public safety Public works Parks and recreation Total charges for services Fines and forfeitures Public safety Total fines and forfeitures Other revenues: Investment income Miscellaneous Proceeds from sale of land Other refunds Total other revenues Total revenues 7 1998 Over (under) Budget Actual Budget 1997 ' $2,659,289 $2,661,028 $1,739 $2,504,686 - 1,260 1,260 770 2,659,289 2,662,288 2,999 2,505,456 51,250 51,906 656 85,948 138,100 237,505 99,405 116,585 189,350 289,411 100,061 202,533 5,000 4,618 (382) 4,534 - 23,432 23,432 19,840 2,247,380 2,263,962 16,582 2,207,929 959,829 959,460 (369) 959,829 7,000 7,279 279 7,950 - 5,850 5,850 - 122,000 145,636 23,636 157,907 20,000 20,480 480 20,480 - 5,538 5,538 - 38,500 38,639 139 37,225 3,399,709 3,474,894 75,185 3,415,694 12,000 701 (11,299) 2,010 143,000 180,040 37,040 147,724 11,000 19,393 8,393 39,158 163,675 160,625 (3,050) 154,929 329,675 360,759 31,084 343,821 120,000 121,858 1,858 127,074 120,000 121,858 1,858 127,074 150,000 237,267 87,267 234,650 27,820 21,475 (6,345) 9,223 500 - (500) - 2,500 290 (2,210) 6,753 180,820 259,032 78,212 250,626 $6,878,843 $7,168,242 $289,399 $6,845,204 74 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL FUND SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Amounts For The Year Ended December 31, 1997 Expenditures: General government: Council and manager: Council Manager Legal Total council and manager Administrative services: Finance Elections Assessing General government buildings Total administrative services Total general government Public safety: Police Fire Civil defense Animal control Total public safety Public works, highways and streets: Engineering Streets Street lighting ' Traffic signs /signals Total public works, highways and streets ' Other departments: Sanitation Parks and recreation Contingencies Total other departments Total expenditures Statement 9 1998 Actual Supplies Over Personal and Capital (under) 1997 Budget Services Services Outlay Total Budget Actual $194,321 $113,717 $58,462 $ $172,179 ($22,142) $155,345 347,905 282,690 60,126 506 343,322 (4,583) 317,829 204,145, - 162,547 162,547 (41,598) 196,095 746,371 396,407 281,135 506 678,048 (68,323) 669,269 525,322 411,691 59,923 1,602 473,216 (52,106) 481,776 37,104 27,977 3,779 - 31,756 (5,348) 10,233 129,832 44,958 79,379 - 124,337 (5,495) 118,579 220,260 6,346 115,069 20,704 142,119 (78,141) 117,272 912,518 490,972 258,150 22,306 771,428 (141,090) 727,860 1,658,889 887,379 539,285 22,812 1,449,476 (209,413) 1,397,129 2,101,381 1,735,541 199,687 2,679 1,937,907 (163,474) 1,893,344 706,938 628,903 69,634 4,594 703,131 (3,807) 613,123 29,398 17,257 7,602 - 24,859 (4,539) 27,812 13,525 - 9,647 9,647 (3,878) 8,031 2,851,242 7381,701 286,570 7,273 2,675,544 (175,698) 2,542,310 323,365 210,114 48,919 11,054 270,087 (53,278) 392,633 591,805 252,343 230,266 10,785 493,394 (98,411) 535,017 123,029 1,708 107,685 - 109,393 (13,636) 105,553 63,690 26,261 18,411 - 44,672 (19,018) 42,479 1,101,889 490,426 405,281 21,839 917,546 (184,343) 1,075,682 128,058 51,238 62,773 2,805 116,816 (11,242) 84,251 1,266,832 702,229 403,752 4,358 1,110,339 (156,493) 1,111,214 21,000 - 262 - 262 (20,738) 920 1,415,890 753,467 466,787 7,163 1,227,417 (188,473) 1,196,385 $7,027,910 $4,512,973 $1,697,923 $59,087 $6,269,983 ($757,927) $6,211,506 75 This page intentionally left blank. 76 ' 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. Police /Fire Contingency Fund — established to account for future years' expenditures ' related to police and fire. 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. 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. Recreation Contributed Projects Fund - established to monitor contributions for recreational ' activities and related expenditures. 77 This page intentionally left blank. IContributed Projects Fund - established to monitor contributions - ) ut ons and related expenditures. Special Projects Fund — established to monitor revenues from special projects and related expenditures. tParking Ramp Fund - established to account for revenues from parking ramp assessments that are to be used for redevelopment. tConfiscated Property Fund - established to account for funds from property confiscated by the police department. Housina Mortga e Fund - established to account for proceeds and expenditures relating to housing mortgage refinancing proceeds which are not restricted for debt service. MIF Medtronics — established to account for proceeds and expenditures related to Minnesota Investment Fund grants. 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. ' Housing and Redevelopment Authority und - 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. Parkview Villa South Fund - established to account for revenues and expenditures ' associated with an EDA owned senior housing complex. Rental Housing_ Fund - established to account for revenues and expenditures of ' City -owned rental properties. 79 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1998 With Comparative Totals For December 31, 1997 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 Municipal State Aid Cable Police/Fire D.A.R.E. Television Contingency Program Library $3,209 $331,877 $766,854 $10,793 $252,214 - 24,311 - - - - 2,894 5,960 - 1,240 54,727 - - 1,425 - - - - - 844 $57,936 $359,082 $772,814 $12,218 $254,298 $109,040 $250 $ - $ - $1,728 327 - - - 14,750 22,934 - - _ _ - - - - 316 172,186 304,487 250 0 0 16,794 844 - 4,067 772,814 - 1,617 - - - - 228,715 (246,551) 354,765 - 12,218 6,328 (246,551) 358,832 772,814 12,218 237,504 $57,936 $359,082 $772,814 $12,218 $254,298 Statement 10 Page 1 of 2 i FAST Community Cops Juvenile Local Law Cops Federal COPS Development MORE 96 Justice Enforcement Overtime Police Grant Grant Fund Grant Grant Block Grant Grant $37,820 $54,823 $ - $ - $200 $ - $ - 1 148 596 1,031 - - - - - 691 - 27,728 2, 106 9,998 - ' - - 301 - - - - ( $37,968 $56,110 $1,332 $27,728 $2,306 $9,998 $0 $ - $ - $3,981 $ - $ - $ - $ - 6,176 2,477 9,744 1,432 ' _ = 28,985 22,838 1,434 10,446 1,007 ' 6,176 42,710 24,270 10,446 2,477 1,434 1,007 L- - 301 - - - - 31,792 53,633 (41,679) 3,458 872 (448) (1,007) ' 31,792 53,633 (41,378) 3,458 872 (448) (1,007) $37,968 $56,110 $1,332 $27,728 $2,306 $9,998 $0 i CITY OF COLUMBIA HEIGHTS, MINNESOTA ' SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET ' December 31, 1998 With Comparative Totals For December 31, 1997 1 Liabilities and Fund Balance , Liabilities: Accounts payable $562 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 562 0 0 0 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 36,679 15,080 101,002 658,387 Total fund balance 36,679 15,080 101,002 658,387 Total liabilities and fund balance $37,241 $15,080 $101,002 $658,387 Recreation Contributed Contributed Special Parking Assets Projects Projects Projects Ramp Cash and investments $37,241 $15,080 $100,665 $248,311 Receivables: Accounts _ Taxes _ _ Interest - - 337 2,049 ' Loans _ Due from other governmental units - _ _ _ Due from other funds - - - 408,027 Prepayments _ Real estate held for resale _ _ Total assets $37,241 $15,080 $101,002 $658,387 ' Liabilities and Fund Balance , Liabilities: Accounts payable $562 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 562 0 0 0 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 36,679 15,080 101,002 658,387 Total fund balance 36,679 15,080 101,002 658,387 Total liabilities and fund balance $37,241 $15,080 $101,002 $658,387 Statement 10 Page 2 of 2 ' Total Housing and Economic Confiscated Housing MIF Redevelopment Development Totals Property Mortgage Medtronics C.H.A.S.E. Authority Authority 1998 1997 $ - $25,338 $626 $9,464 $ - $1,182,201 $3,076,716 $2,778,303 - - - - - 10,761 35,072 30,097 - - - - 5,287 4,125 9,412 3,566 ' = 209 97 = - 7,472 22,033 24,511 112,857 15,000 127,857 281,143 - - - 8,413 - 59,635 164,723 233,141 - 446,352 _ - 10,572 - 864,951 866,091 ' 36,672 1,145 9,454 - - - - 45,113 54,830 99,943 84,113 $0 $471,899 $723 $17,877 $173,829 $1,334,024 $4,401,852 $4,310,419 $293 $ - $ - $974 $ - $31,426 $148,254 $113,272 ' -- _ = 803 - 1,732 37,441 26,743 - - - 22,934 11,037 - - - - - 36,672 36,988 35,927 ' 880 = _ - 20,615 10,572 268,963 211,197 16,250 115,075 109,355 240,680 591,155 - - - - - 18,947 18,947 19,432 - - - - 232 - 232 206 1,173 0 0 18,027 135,922 208,704 774,439 1,008,969 ' - - - - - - 1,145 9,454 - - - - 45,113 54,830 99,943 21,113 - - - - - 499,934 499,934 313,039 - - - - - - 778,498 674,393 - - - - - - 228,715 220, 108 _ = - - 530,719 530,719 472,710 - - - - 8,996 (1,173) 471,899 723 (150) (7,206) 39,837 1,488,459 1,581,637 ' (1,173) 471,899 723 (150) 37,907 1,125,320 3,627,413 3,301,450 $0 $471,899 $723 $17,877 $173,829 $1,334,024 $4,401,852 $4,310,419 1 83 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 Municipal 84 1 State Cable Police /Fire D.A.R.E. Aid Television Contingency. Program Library Revenues: , Taxes $ - $ - $ - $ - $443,145 Intergovernmental 615,782 - 88,750 - - Fees /program revenues - 97,091 - - 16,139 ' Rents - Investment income - 21,566 44,406 - 9,244 Other revenues: , Miscellaneous - 25,028 - 123 - Contributions Total revenues - - - 3,450 3,573 - t 615,782 143,685 133,156 468,528 Expenditures: Parks and recreation: Personal services _ _ Supplies _ _ Other services and charges - - Capital outlay _ - - _ _ Other: Personal services 56,407 338 79,398 - 331,428 Supplies 47 11,251 - 4,978 80,905 , Other services and charges 91,250 39,050 6,587 1,237 58,907 Capital outlay 523,547 22,787 - - 2,899 Total expenditures 671,251 73,426 85,985 6,215 474,139 ' Revenues over (under) expenditures (55,469) 70,259 47,171 (2,642) (5,611 Other financing sources (uses): Operating transfers in - - 65,000 5,000 - Operating transfers (out) (30,000) (47,164) - - (7,524) ' Total other financing sources (uses) (30,000) (47,164) 65,000 5,000 (7,524) Net increase (decrease) in fund balance (85,469) 23,095 112,171 2,358 (13,135) Fund balance (deficit) - January 1, as previously stated (161,082) 338,051 664,091 9,860 251,890 Prior period adjustment /restatements - (2,314) (3,448) - (1,251) Fund balance (deficit) - January 1, as restated (161,082) 335,737 660,643 9,860 250,639 Fund balance (deficit) - December 31 ($246,551) $358,832 $772,814 $12,218 $237,504 ' 84 1 Statement 11 Page 1 of 2 135,666 FAST Community Cops Juvenile Local Law Cops Federal COPS Development MORE 96 Justice Enforcement Overtime Police Grant Grant Fund Grant Grant Block Grant Grant - - - 17,933 - 748 - - 10,301 6,669 27,728 9,551 9,998 30,000 1,096 4,443 7,679 - - - - - - 250 - - - - - - 520 - - - - 1,096 14,744 15,118 27,728 9,551 9,998 30,000 135,666 55,978 212,992 16,476 4,072 - 31,007 - - 5,826 1,397 4,607 10,539 - - - 51,701 1,186 - 1,154 - - - - 17,933 - 748 - 135,666 55,978 270,519 36,992 8,679 12,441 31,007 (134,570) (41,234) (255,401) (9,264) 872 (2,443) (1,007) 84,240 - 227,216 - - - - - - (7,180) - - - - 84,240 0 220,036 0 0 0 0 (50,330) (41,234) (35,365) (9,264) 872 (2,443) (1,007) 82,283 95,563 (6,013) 12,722 - 2,076 - (161) (696) - - - (81) _ 82,122 94,867 (6,013) 12,722 0 1,995 0 $31,792 $53,633 ($41,378) $3,458 $872 ($448) ($1,007) CITY OF COLUMBIA HEIGHTS, MINNESOTA , SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 ' Revenues: Taxes Intergovernmental Fees /program revenues Rents Investment income 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, as previously stated Prior period adjustment /restatements Fund balance (deficit) - January 1, as restated Fund balance (deficit) - December 31 Recreation , Contributed Contributed Special Parking Projects Projects Projects Ramp - - 50,650 - - 2,509 15,271 ' 27,309 5,899 - - 27,309 5,899 53,159 15,271 4,354 - - - 20,201 - - - 5,801 - - - 1,875 - - - - 4,608 5,000 - - - 7,531 - 32,231 4,608 12,531 0 (4,922) 1,291 40,628 15,271 - - 60,374 - (3,000) - - - (3,000) 0 60,374 0 (7,922) 1,291 101,002 15,271 44,601 13,789 - 644,718 - - - (1,602) 44,601 13,789 0 643,116 $36,679 $15,080 $101,002 $658,387 Statement 11 Page 2 of 2 1 87 Total Housing and Economic Confiscated Housing MIF Redevelopment Development Totals Property Mortgage Medtronics C.H.A.S.E. Authority Authority 1998 1997 $ - $ - $ - $ - $71,936 $98,313 $613,394 $590,904 = = 134,653 61,817 11,896 804,019 1,811,164 971,981 15,607 24,545 176,791 380,823 139,081 - - - - - 426,094 426,094 440,583 - 1,558 724 - 7,265 63,557 179,318 177,574 40 - - 96 348 195,109 220,994 29,602 - - - - - 8,000 45,178 82,284 40 1,558 135,377 77,520 115,990 1,771,883 3,676,965 2,432,009 - - - 43,212 - - 47,566 38,455 - - - 10,352 - - 30,553 25,170 _ - - 28,862 - - 34,663 26,957 1,875 - 86,414 1,010,176 817,579 ' 435 14,603 134,588 158,902 2,426 - 134,654 - 25,000 1,286,456 1,709,216 916,575 677 - - - - 14,144 590,266 340,896 ' 3,538 0 134,654 82,426 25,000 1,401,617 3,558,903 2,324,534 (3,498) 1,558 723 (4,906) 90,990 370,266 118,062 107,475 - - - 3,000 - 17,500 462,330 657,802 - - - - (83,192) (59,709) (237,769) (372,615) 0 0 0 3,000 (83,192) (42,209) 224,561 285,187 (3,498) 1,558 723 (1,906) 7,798 328,057 342,623 392,662 2,325 470,504 - 1,756 30,109 804,207 3,301,450 2,908,788 - (163) - - - (6,944) (16,660) - ' 2,325 470,341 0 1,756 30, 109 797,263 3,284,790 2,908,788 ($1,173) $471,899 $723 ($150) $37,907 $1,125,320 $3,627,413 $3,301,450 1 87 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - MUNICIPAL STATE AID STREET FUND Statement 12 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 Revenues: Intergovernmental: State of Minnesota: Maintenance Construction 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 Over (under) 1997 Budget Actual Budget Actual $160,000 $163,435 $3,435 $160,056 813,000 452,347 (360,653) 208,701 973,000 615,782 (357,218) 368,757 9,800 42,418 32,618 19,378 1,100 47 (1,053) 22,072 44,859 46,589 1,730 23,201 56,400 41,108 (15,292) 22,178 63,000 13,989 (49,011) 31,726 - - - 104 41,485 44,661 3,176 37,540 720,000 482,439 (237,561) 220,760 936,644 671,251 (265,393) 376,959 36,356 (55,469) (91,825) (8,202) (30,000) (30,000) - (50,000) - - - (80,430) (30,000) (30,000) 0 (130,430) $6,356 (85,469) ($91,825) (138,632) Fund balance (deficit) - January 1 (161,082) (22,450) Fund balance (deficit) - December 31 ($246,551) ($161,082) 1 I 88 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - CABLE TELEVISION FUND Statement 13 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 Revenues: Franchise fees Investment income 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) Net increase (decrease) in fund balance Fund balance - January 1, as previously stated Prior period adjustment /restatements Fund balance - January 1, as restated Fund balance - December 31 =061? Over (Under) Budget Actual Budget $88,000 $97,091 $9,091 10,000 21,566 11,566 25,028 98,000 143,685 1,012 338 10,277 11,251 44,871 39,050 53,000 22,787 109,160 73,426 (11,160) 70,259 (47,164) (47,164) ($58,324) 23,095 338,051 (2,314) 335,737 $358,832 91 25,028 45,685 (674) 974 (5,821) (30,213) (35,734) 81,419 $81,419 1997 $89,847 21,846 4,042 115,735 420 10,969 57,903 59,965 129,257 (13,522) (44,072) (57,594) 395,645 $338,051 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - POLICE/FIRE CONTINGENCY Statement 14 STATEMENT OF REVENUES, EXPENDITURES AND ' CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 ' 1998 Revenues: Intergovernmental Investment income Total revenues Expenditures: Personal services Other services and charges Total expenditures Revenues over (under) expenditures Other financing sources (uses): Operating transfers in Net increase in fund balance Fund balance - January 1, as previously stated Prior period adjustment /restatements Fund balance - January 1, as restated Fund balance - December 31 125,000 79,398 Over 52,735 - 6,587 (Under) 1997 Budget Actual Budget Actual $93,700 $88,750 ($4,950) $85,044 15,000 44,406 29,406 32,563 108,700 133,156 24,456 117,607 125,000 79,398 (45,602) 52,735 - 6,587 6,587 2,214 125,000 85,985 (39,015) 54,949 (16,300) 47,171 63,471 62,658 65,000 65,000 - 145,000 $48,700 112,171 $63,471 207,658 664,091 456,433 (3,448) - 660,643 456,433 $772,814 $664,091 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - D.A.R.E. PROGRAM Statement 15 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 Expenditures: Supplies 6,125 1998 (1,147) 6,376 Other services and charges 2,825 1,237 Over 1,003 Total expenditures 8,950 6,215 (Under) 1997 Revenues over (under) expenditures (7,950) Budget Actual Budget Actual Revenues: Intergovernmental: State grant $ - $ - $ - $5,000 Other revenues: Miscellaneous - 123 123 63 Contributions 1,000 3,450 2,450 772 Total revenues 1,000 3,573 2,573 5,835 Expenditures: Supplies 6,125 4,978 (1,147) 6,376 Other services and charges 2,825 1,237 (1,588) 1,003 Total expenditures 8,950 6,215 (2,735) 7,379 Revenues over (under) expenditures (7,950) (2,642) 5,308 (1,544) Other financing sources (uses): Operating transfers in 5,000 5,000 - 8,075 Total other financing sources (uses) 5,000 5,000 0 8,075 Net increase (decrease) in fund balance ($2,950) 2,358 $5,308 6,531 Fund balance - January 1 9,860 3,329 Fund balance - December 31 $12,218 $9,860 111 U CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - LIBRARY FUND Statement 16 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 Expenditures: Personal services 328,970 1998 2,458 298,202 Supplies 75,195 80,905 Over 75,215 Other services and charges 64,030 58,907 (under) 1997 Capital outlay Budget Actual Budget Actual Revenues: 483,351 474,139 (9,212) 452,946 Taxes $443,145 $443,145 $ - $422,043 Charges for services 22,200 16,139 (6,061) 17,307 Investment income 10,000 9,244 (756) 11,814 Other revenues: Miscellaneous 50 - (50) 10 Total revenues 475,395 468,528 (6,867) 451,174 Expenditures: Personal services 328,970 331,428 2,458 298,202 Supplies 75,195 80,905 5,710 75,215 Other services and charges 64,030 58,907 (5,123) 53,941 Capital outlay 15,156 2,899 (12,257) 25,588 Total expenditures 483,351 474,139 (9,212) 452,946 Revenues over (under) expenditures (7,956) (5,611) 2,345 (1,772) Other financing sources (uses): Operating transfers (out) (7,524) (7,524) - (7,127) Total other financing sources (uses) (7,524) (7,524) 0 (7,127) Net increase (decrease) in fund balance ($15,480) (13,135) $2,345 (8,899) Fund balance - January 1, as previously stated 251,890 260,789 Prior period adjustment /restatement (1,251) - Fund balance - January 1, as restated 250,639 260,789 Fund balance - December 31 $237,504 $251,890 92 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 For The Year Ended December 31, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 Revenues: Intergovernmental: Federal grant Investment income Total revenues Expenditures: Personal services Total expenditures Revenues over (under) expenditures Other financing sources: Operating transfers in Net increase (decrease) in fund balance Fund balance - January 1, as previously stated Prior period adjustment /restatements Fund balance - January 1, as restated Fund balance - December 31 1998 Over (Under) 1997 Budget Actual Budget Actual $ - $ - $ - $37,004 - 1,096 1,096 1,517 0 1,096 1,096 38,521 84,240 135,666 51,426 119,785 84,240 135,666 51,426 119,785 (84,240) (134,570) (50,330) (81,264) 84,240 84,240 - 119,740 $0 (50,330) ($50,330) 38,476 82,283 43,807 (161) - 82,122 43,807 $31,792 $82,283 93 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, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 Revenues: Intergovernmental: Federal grant Investment income Total revenues Expenditures: Personal services Total expenditures Revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfer (out) Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance - January 1, as previously stated Prior period adjustment /restatements Fund balance - January 1, as restated Fund balance - December 31 1998 Over (Under) 1997 Budget Actual Budget Actual $20,000 $10,301 ($9,699) $26,728 - 4,443 4,443 6,570 20,000 14,744 (5,256) 33,298 56,371 55,978 (393) 52,805 56,371 55,978 (393) 52,805 (36,371) (41,234) (4,863) (19,507) - - - 17,237 - - - (34,000) 0 0 0 (16,763) ($36,371) (41,234) ($4,863) (36,270) 95,563 131,833 (696) - 94,867 131,833 $53,633 $95,563 M. 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, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 Expenditures: Personal services 1998 212,992 42,884 140,860 Over 3,365 5,826 (Under) 1997 2,108 Budget Actual Budget Actual Revenues: 6,755 49,907 Intergovernmental $ - $6,669 $6,669 $ - Investment income - 7,679 7,679 - Other revenues: 270,519 48,433 Miscellaneous - 250 250 126 Contributions - 520 520 - Total revenues 0 15,118 15,118 126 Expenditures: Personal services 170,108 212,992 42,884 140,860 Supplies 3,365 5,826 2,461 2,108 Other services and charges 44,946 51,701 6,755 49,907 Capital outlay 3,667 - (3,667) - Total expenditures 222,086 270,519 48,433 192,875 Revenues over (under) expenditures (222,086) (255,401) (33,315) (192,749) Other financing sources (uses): Operating transfers in 227,216 227,216 - 258,000 Operating transfers (out) (7,180) (7,180) - (8,228) Total other financing sources (uses) 220,036 220,036 0 249,772 Net increase (decrease) in fund balance ($2,050) (35,365) ($33,315) 57,023 Fund balance (deficit) - January 1 (6,013) (63,036) Fund balance (deficit) - December 31 ($41,378) ($6,013) 95 CITY OF COLUMBIA HEIGHTS, MINNESOTA ' SPECIAL REVENUE FUND - COPS MORE 96 Statement 20 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ' For The Year Ended December 31, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 1998 1997 Revenues: Intergovernmental: Federal grant $27,728 $ - Expenditures: Personal services 16,476 - Supplies 1,397 - Other services and charges 1,186 91 Capital outlay 17,933 1,600 Total expenditures 36,992 1,691 Revenues over (under) expenditures (9,264) (1,691) Other financing sources: Operating transfers in - 14,413 ' Net increase (decrease) in fund balance (9,264) 12,722 , Fund balance - January 1 12,722 - Fund balance - December 31 $3,458 $12,722 a 96 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - JUVENILE JUSTICE GRANT Statement 21 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1998 97 1998 Revenues: Intergovernmental: State grant $9,551 Expenditures: Personal services 4,072 Supplies 4,607 Total expenditures 8,679 Net increase in fund balance 872 Fund balance - January 1 - Fund balance - December 31 $872 97 CITY OF COLUMBIA HEIGHTS, MINNESOTA 1 SPECIAL REVENUE FUND - LOCAL LAW ENFORCEMENT BLOCK GRANT Statement 22 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 ' Expenditures: Supplies 1 14,781 1998 1997 Revenues: Intergovernmental: 1,154 Federal grant $9,998 $20,348 Investment income - 758 Total revenues ' 9,998 21,106 Expenditures: Supplies 10,539 14,781 ' Other services and charges 1,154 1,611 Capital outlay 748 5,008 Total expenditures 12,441 21,400 Net increase (decrease) in fund balance (2,443) (294) Fund balance - January 1, as previously stated 2,076 2,370 1 Prior period adjustment /restatements (81) - Fund balance - January 1, as restated 1,995 2,370 ' Fund balance (deficit) - December 31 ($448) $2,076 1 u 98 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - COPS OVERTIME GRANT Statement 23 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 Revenues: Intergovernmental: State grant Expenditures: Personal services Net increase (decrease) in fund balance Fund balance - January 1 Fund balance (deficit) - December 31 1998 1997 $30,000 $4,629 31,007 (1,007) ($1,007) 5,027 (398) 398 $0 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - RECREATION CONTRIBUTED PROJECTS Statement 24 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ' For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 , 1998 1997 Revenues: Contributions $27,309 $48,997 Expenditures: ' Personal services 4,354 - Supplies 20,201 13,264 Other services and charges 5,801 5,582 ' Capital outlay 1,875 - Total expenditures 32,231 18,846 Revenues over (under) expenditures (4,922) 30,151 , Other financing sources (uses): Operating transfers (out) (3,000) - ' Net increase (decrease) in fund balance (7,922) 30,151 ' Fund balance - January 1 44,601 14,450 Fund balance - December 31 $36,679 $44,601 ' 100 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - CONTRIBUTED PROJECTS Statement 25 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 1998 Revenues: Contributions $5,899 Expenditures: Supplies - Other services and charges 4,608 Total expenditures 4,608 Net increase in fund balance 1,291 Fund balance - January 1 13,789 Fund balance - December 31 $15,080 101 1997 $3,924 961 2,532 3,493 431 13,358 $13,789 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - SPECIAL PROJECTS Statement 26 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1998 102 1998 Revenues: Fees /program revenue $50,650 Investment income 2,509 Total revenues 53,159 Expenditures: Other services and charges 5,000 Capital outlay 7,531 Total expenditures 12,531 Revenues over expenditures 40,628 Other financing sources: Operating transfers in 60,374 Net increase in fund balance 101,002 Fund balance - January 1 - Fund balance - December 31 $101,002 102 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - PARKING RAMP Statement 27 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 Revenues: Investment income Expenditures Net increase in fund balance Fund balance - January 1, as previously stated Prior period adjustment /restatements Fund balance - January 1, as restated Fund balance - December 31 103 1998 $15,271 15,271 644,718 (1,602) 643,116 $658,387 1997 $15,132 15,132 629,586 629,586 $644,718 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - CONFISCATED PROPERTY Statement 28 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 Revenues: Other revenue: Confiscated property Expenditures: Supplies Other services and charges Capital outlay Total expenditures Net increase (decrease) in fund balance Fund balance - January 1 Fund balance (deficit) - December 31 104 1998 1997 $40 $2,632 435 2,426 677 3,538 (3,498) 2,325 ($1,173) 439 1,027 1,769 3,235 (603) 2,928 $2,325 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - HOUSING MORTGAGE Statement 29 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 1998 1997 Revenues: Investment income $1,558 $1,544 Expenditures Revenues over expenditures 1,558 1,544 Fund balance - January 1, as previously stated 470,504 468,960 Prior period adjustment /restatements (163) - Fund balance - January 1, as restated 470,341 468,960 Fund balance - December 31 $471,899 $470,504 105 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - MIF MEDTRONICS Statement 30 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1998 1998 Revenues: Intergovernmental: State grant $134,653 Investment income 724 Total revenues 135,377 Expenditures: Loans and grants 134,654 Revenues over expenditures 723 Fund balance - January 1 - Fund balance - December 31 $723 106 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - C .H .A .S .E . Statement 31 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 Expenditures: Personal services 1998 1997 Revenues: 10,352 11,906 Intergovernmental: 28,862 21,375 State grant $61,817 $71,735 Fees /program revenue 15,607 1,757 Other revenues: Miscellaneous 96 - Total revenues 77,520 73,492 Expenditures: Personal services 43,212 38,455 Supplies 10,352 11,906 Other services and charges 28,862 21,375 Total expenditures 82,426 71,736 Revenues over (under) expenditures (4,906) 1,756 Other financing sources: Operating transfers in 3,000 - Net increase (decrease) in fund balance (1,906) 1,756 Fund balance - January 1 1,756 - Fund balance (deficit) - December 31 ($150) $1,756 107 This page intentionally left blank. CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT) Statement 32 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 Revenues: Taxes Intergovernmental Fees /program revenues Investment income Other Total revenues Expenditures: Loans and grants 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 - December 31 - - 50,000 (83,192) (83,192) - (115,942) (83,192) (83,192) 0 (65,942) $17,915 7,798 ($10,117) 45,556 109 30,109 (15,447) $37,907 $30,109 1998 Over (Under) 1997 Budget Actual Budget Actual $72,192 $71,936 ($256) $71,794 11,000 11,896 896 11,896 15,205 24,545 9,340 20,094 2,710 7,265 4,555 7,714 - 348 348 - 101,107 115,990 14,883 111,498 - 25,000 25,000 - 0 25,000 25,000 0 101,107 90,990 (10,117) 111,498 - - 50,000 (83,192) (83,192) - (115,942) (83,192) (83,192) 0 (65,942) $17,915 7,798 ($10,117) 45,556 109 30,109 (15,447) $37,907 $30,109 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS - ECONOMIC DEVELOPMENT AUTHORITY (COMPONENT UNIT) COMBINING BALANCE SHEET December 31, 1998 With Comparative Totals For December 31, 1997 Assets Cash and investments Receivables: Accounts Taxes Interest Loans Due from other governmental units Prepayments Real estate held for resale Total assets Liabilities and Fund Balance Liabilities: Accounts payable Accrued salaries and withholdings payable Due to other governmental units Due to other funds Deferred revenue Deposits Total liabilities Fund balance: Reserved for prepayments Reserved for real estate held for resale Reserved for program expenditures Unreserved: Designated for maintenance Undesignated Total fund balance Total liabilities and fund balance 110 Economic Anoka Parkview Development County Villa Authority CDBG North Admin $296,791 15,000 14,530 43,000 $369,321 4,079 58,000 1,000 63,079 43,000 263,242 306,242 $369,321 $264,033 $47,110 210 10,551 - 4,125 2,220 - 1,137 $266,463 $62,923 $22,970 16,442 12,178 9,950 61,540 204,923 204,923 $266,463 $526 470 996 12,587 49,340 61,927 $62,923 Statement 33 ' Parkview Villa Rental Total ' Section 8 South Housing 1998 1997 $3,411 $554,079 $16,777 $1,182,201 $1,065,117 ' - - - 10,761 7,381 - - - 4,125 1,614 564 41450 238 7,472 10,217 15,000 168,741 43,968 - - 59,635 81,360 - - 653 ' _ _ 11,830 54,830 63,000 $47,943 $558,529 $28,845 $1,334,024 $1,398,083 ' $10 $6,723 $1,197 $31,426 $51,372 1,262 - - 1,732 2,490 - 14,266 1,885 36,672 33,956 - - 10,572 10,572 11,712 27,489 431 11,257 109,355 474,914 - 6,390 1,607 18,947 19,432 ' 28,761 27,810 26,518 208,704 593,876 t _ 11,830 54,830 19,182 - - 499,934 313,039 ' - 530,719 - 530,719 472,710 - - (9,503) 39,837 17,805 ' 19,182 530,719 2,327 1,125,320 804,207 $47,943 $558,529 $28,845 $1,334,024 $1,398,083 111 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, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 Revenues: Taxes Intergovernmental Fees /program revenues Rents Investment income Other revenues: Miscellaneous Contributions Total revenues Expenditures: Personal services Supplies Other services and charges Loans and grants Capital outlay Total expenditures Revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers (out) Total other financing sources (uses) Net increase in fund balance Fund balance (deficit) - January 1, as previously stated Prior period adjustment /restatements Fund balance (deficit) - January 1, as restated Fund balance - December 31 112 Anoka County CDBG 14,530 168,741 7,842 Parkview Villa North Economic Development Authority Admin $ - $98,313 52,750 - - 8,050 229,354 - 16,540 - 34,200 3,418 225,313 302,062 5,099 3,282 14,530 22,911 202,402 17,500 (2,132) 15,368 217,770 88,472 88,472 $306,242 1,864 7,402 252,071 11,649 272,986 29,076 (20,610) (20, 610) 8,466 197,771 (1,314) 196,457 $204,923 109,768 8,000 224,131 29,514 435 26,198 110,267 166,414 57,717 (27,417) (27,417) 30,300 31,627 31,627 $61,927 Section 8 736,739 4,244 43,229 784,212 . 48,685 415 12,328 709,849 771,277 ' 12,935 (5,960) (5,960) 6,975 ' 14,403 (2,196) 12,207 $19,182 t i 1 1 Parkview Villa South 175,108 33,160 4,290 212,558 584 5,981 139,862 1,375 147,802 64,756 (3,590) (3,590) 61,166 472,806 (3,253) 469,553 $530,719 Rental Housing 21,632 1,771 204 23,607 668 370 18,069 1,120 20,227 3,380 0 3,380 (872) (181) (1,053) $2,327 113 1998 $98,313 804,019 176,791 426,094 63,557 195,109 8,000 1,771,883 86,414 14,603 451,810 834,646 14,144 1,401,617 370,266 17,500 (59,709) (42,209) 328,057 804,207 (6,944) 797,263 $1,125,320 Total Statement 34 1997 $97,067 340,840 10,076 440,583 78,116 22,729 28,591 1,018,002 96,641 25,877 416,916 268,689 4,028 812,151 205,851 45,337 (32,816) 12,521 218,372 585,835 585,835 $804,207 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - ECONOMIC DEVELOPMENT AUTHORITY - Statement 35 ANOKA COUNTY CDBG - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 Revenues: Intergovernmental revenue Fees /program revenues Investment income Other 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 - January 1 Fund balance - December 31 114 88,472 $306,242 81,593 $88,472 1998 Over (Under) 1997 Budget Actual Budget Actual $302,536 $14,530 ($288,006) $21,163 - 168,741 168,741 2,458 - 7,842 7,842 12,474 - 34,200 34,200 - 302,536 225,313 (77,223) 36,095 19,548 5,099 (14,449) 4,700 140 - (140) 4 26,283 3,282 (23,001) 6,452 162,944 14,530 (148,414) 18,060 107,816 - (107,816) - 316,731 22,911 (293,820) 29,216 (14,195) 202,402 216,597 6,879 17,500 17,500 - - (4,500) (2,132) 2,368 - 13,000 15,368 2,368 0 ($1,195) 217,770 $218,965 6,879 114 88,472 $306,242 81,593 $88,472 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - ECONOMIC DEVELOPMENT AUTHORITY- PARKVIEW VILLA NORTH - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 Statement 36 1998 Over (Under) 1997 Budget Actual Budget Actual Revenues: Intergovernmental revenue $ - $52,750 $52,750 $64,531 Rents 247,720 229,354 (18,366) 233,207 1 Investment income 5,500 16,540 11,040 12,404 Other 5,250 3,418 (1,832) 11,095 Total revenues 258,470 302,062 43,592 321,237 Expenditures: Personal services 6,770 1,864 (4,906) 2,317 Supplies 19,278 7,402 (11,876) 14,129 ' Other services and charges 251,628 252,071 443 220,703 Capital outlay 4,970 11,649 6,679 1,867 Total expenditures 282,646 272,986 (9,660) 239,016 Revenues over (under) expenditures (24,176) 29,076 53,252 82,221 Other financing sources (uses): Operating transfers (out) (7,130) (20,610) (13,480) (4,000) ' Net increase (decrease) in fund balance ($31,306) 8,466 $39,772 78,221 Fund balance - January 1, as previously stated 197,771 119,550 ' Prior period adjustment /restatements (1,314) - Fund balance - January 1, as restated 196,457 119,550 Fund balance - December 31 $204,923 $197,771 1 115 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - ECONOMIC DEVELOPMENT AUTHORITY - Statement 37 EDA ADMINISTRATION - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 Expenditures: Personal services 107,238 1998 (77,724) 61,935 Supplies 3,465 435 Over 2,540 Other services and charges 46,596 26,198 (Under) 1997 Loans and grants Budget Actual Budget Actual Revenues: 3,333 - (3,333) - Taxes $99,000 $98,313 ($687) $97,067 Intergovernmental revenue 952,305 - (952,305) 28,654 Fees /program revenues 11,850 8,050 (3,800) 7,618 Other revenues: Miscellaneous - 109,768 109,768 - Contributions - 8,000 8,000 28,591 Total revenues 1,063,155 224,131 (839,024) 161,930 Expenditures: Personal services 107,238 29,514 (77,724) 61,935 Supplies 3,465 435 (3,030) 2,540 Other services and charges 46,596 26,198 (20,398) 37,491 Loans and grants 873,816 110,267 (763,549) 26,695 Capital outlay 3,333 - (3,333) - Total expenditures 1,034,448 166,414 (868,034) 128,661 Revenues over expenditures 28,707 57,717 29,010 33,269 Other financing sources (uses): Operating transfers in - - - 45,337 Operating transfers (out) (27,417) (27,417) - (14,229) Total other financing sources (uses) (27,417) (27,417) 0 31,108 Net increase in fund balance $1,290 30,300 $29,010 64,377 Fund balance (deficit) - January 1 31,627 (32,750) Fund balance - December 31 $61,927 $31,627 116 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - ECONOMIC DEVELOPMENT AUTHORITY - Statement 38 SECTION 8 HOUSING - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 Revenues: Intergovernmental revenue Investment income Other Total revenues Expenditures: Personal services Supplies ' Other services and charges Loans and grants Total expenditures ( Revenues over (under) expenditures Other financing sources (uses): Operating transfers (out) Net increase (decrease) in fund balance Fund balance - January 1, as previously stated Prior period adjustment /restatements Fund balance - January 1, as restated Fund balance - December 31 1998 18,134 48,685 Over 24,681 1,100 415 (Under) 1997 Budget Actual Budget Actual $269,100 $736,739 $467,639 $226,492 - 4,244 4,244 20,812 28,940 43,229 14,289 5,195 298,040 784,212 486,172 252,499 18,134 48,685 30,551 24,681 1,100 415 (685) 1,863 7,140 12,328 5,188 9,245 269,100 709,849 440,749 223,934 295,4.74 771,277 475,803 259,723 2,566 12,935 10,369 (7,224) (5,960) (5,960) - (12,587) ($3,394) 6,975 $10,369 (19,811) 14,403 34,214 117 - 12,207 34,214 $19,182 $14,403 CITY OF COLUMBIA HEIGHTS, MINNESOTA I SPECIAL REVENUE FUND - ECONOMIC DEVELOPMENT AUTHORITY - Statement 39 PARKVIEW VILLA SOUTH - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 Revenues: Rents Investment income Other Total revenues Expenditures: Personal services Supplies Other services and charges Capital outlay Total expenditures Revenues over expenditures Other financing sources (uses): Operating transfers (out) Net increase in fund balance Fund balance - January 1, as previously stated Prior period adjustment /restatements Fund balance - January 1, as restated Fund balance - December 31 1998 3,385 584 Over 1,044 8,101 5,981 (Under) 1997 Budget Actual Budget Actual ' $176,100 $175,108 ($992) $172,409 15,000 33,160 18,160 30,719 4,850 4,290 (560) 6,289 195,950 212,558 16,608 209,417 3,385 584 (2,801) 1,044 8,101 5,981 (2,120) 6,732 133,670 139,862 6,192 120,876 10,167 1,375 (8,792) 933 155,323 147,802 (7,521) 129,585 40,627 64,756 24,129 79,832 (3,590) (3,590) $37,037 61,166 118 472,806 (3,253) 469,553 $530,719 - (2,000) $24,129 77,832 394,974 $472,806 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - ECONOMIC DEVELOPMENT AUTHORITY - RENTAL HOUSING - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1998 With Comparative Actual Totals For The Year Ended December 31, 1997 Statement 40 1998 Over (Under) 1997 Budget Actual Budget Actual Revenues: Rents $42,060 $21,632 ($20,428) $34,967 Investment income - 1,771 1,771 1,707 Other - 204 204 150 Total revenues 42,060 23,607 (18,453) 36,824 Expenditures: ' Personal services 6,486 668 (5,818) 1,964 Supplies 8,220 370 (7,850) 609 Other services and charges 36,581 18,069 (18,512) 22,149 Capital outlay 1,120 1,120 1,228 Total expenditures 51,287 20,227 (31,060) 25,950 Net increase (decrease) in fund balance ($9,227) 3,380 $12,607 10,874 Fund balance (deficit) - January 1, as previously stated (872) (11,746) Prior period adjustment /restatements (181) Fund balance (deficit) - January 1, as restated (1,053) (11,746) ' Fund balance (deficit) - December 31 $2,327 ($872) 119 This page intentionally left blank. 120 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. 121 CITY OF COLUMBIA HEIGHTS, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1998 With Comparative Totals For December 31, 1997 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 Fund balance: Unreserved: Designated for debt service Undesignated Total fund balance Total liabilities and fund balance Tax Increment Tax Refunding Increment Bonds Multi Use Redevelopment Statement 41 Totals 1998 1997 $1,565,655 $ - $ - $1,565,655 $1,523,434 26,201 - 11,310 37,511 193,648 36,500 - - 36,500 3,007 9,153 - - 9,153 9,875 112,095 - - 112,095 99,416 $1,749,604 $0 $11,310 $1,760,914 $1,829,380 $95,023 $ - $9,625 $104,648 $36,654 11,423 - - 11,423 13,184 854,379 - 109,852 964,231 953,795 36,500 - - 36,500 3,007 997,325 0 119,477 1,116,802 1,006,640 752,279 - - 752,279 922,994 - - (108,167) (108,167) (100,254) 752,279 0 (108,167) 644,112 822,740 $1,749,604 $0 $11,310 $1,760,914 $1,829,380 122 CITY OF COLUMBIA HEIGHTS, MINNESOTA DEBT SERVICE FUNDS ' COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 Statement 42 Tax Tax Increment Multi Use Increment Refunding Redevelopment Totals Bonds Bonds of 1991 Plan 1998 1997 Revenues: Tax increments $1,153,412 $ $20,739 $1,174,151 $1,393,212 Investment income 68,191 - - 68,191 63,373 Total revenues 1,221,603 0 20,739 1,242,342 1,456,585 Expenditures: Debt service: Principal retirement - 990,000 - 990,000 1,155,000 Interest and fiscal charges 360 190,750 191,110 247,208 Miscellaneous 204,497 - 28,652 233,149 74,924 Total expenditures 204,857 1,180,750 28,652 1,414,259 1,477,132 Revenues over (under) expenditures 1,016,746 (1,180,750) (7,913) (171,917) (20,547) Other financing sources (uses): Operating transfers in 2,391 1,180,750 - 1,183,141 1,504,510 Operating transfers (out) (1,183,141) - - (1,183,141) (1,504,510) ' Total other financing sources (uses) (1,180,750) 1,180,750 0 0 0 Net increase (decrease) in fund balance (164,004) 0 (7,913) (171,917) (20,547) Fund balance - January 1, as previously stated 922,994 - (100,254) 822,740 843,287 Prior period adjustment /restatements (6,711) - - (6,711) - Fund balance - January 1, as restated 916,283 0 (100,254) 816,029 843,287 Fund balance (deficit) - December 31 $752,279 $0 ($108,167) $644,112 $822,740 123 This page intentionally left hlanL 124 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. ICapital 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. 125 This page intentionally left blank. 126 CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS Statement 43 COMBINING BALANCE SHEET Page 1 of 2 December 31, 1998 With Comparative Totals For December 31, 1997 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 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 Designated for capital improvement Undesignated Total fund balance (deficit) Total liabilities and fund balance 127 331 $18,975 $18,788 $36,715 $ - $ - $1,345 0 0 1,345 18,975 Water Downtown Capital Surface Parking Improvement Management Maintenance Fund 401 Fund 403 Fund 405 $18,975 $18,788 $36,384 331 $18,975 $18,788 $36,715 $ - $ - $1,345 0 0 1,345 18,975 18,788 35,370 18,975 18,788 35,370 $18,975 $18,788 $36,715 CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1998 With Comparative Totals For December 31, 1997 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 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 Designated for capital improvement Undesignated Total fund balance (deficit) Total liabilities and fund balance Medtronic TIF Capital Sheffield Development District #2 Improvement Redevelopment Fund 406 Fund 407 Fund 408 Fund 410 $315,326 $ - $19,876 $93,899 - - 3,506 - - - 74,600 $315,326 $0 $19,876 $172,005 2,243 - 853,191 0 2,243 0 853,191 74,600 315,326 - - _ - (2,243) 19,876 (755,786) 315,326 (2,243) 19,876 (681,186) $315,326 $0 $19,876 $172,005 128 Statement 43 Page 2 of 2 Capital Improvement General Capital Capital Capital Government Improvement Improvement Infrastructure Equipment Buildings Parks Projects Replacement Replacement Totals Fund 411 Fund 412 Fund 415 Fund 430 Fund 431 1998 1997 $ - $167,303 $ - $916,287 $3,287,658 $4,874,496 $4,606,402 - - 194 - - 194 - - - 2,109 - - 2,109 860 - - 63,342 - - 63,342 54,706 - - 626,176 - - 626,176 558,080 636 1,108 7,345 36,162 45,582 47,510 - - - - - 3,506 6,755 - - 4,782 - - 4,782 - - - - - - 74,600 119,600 $636 $168,411 $696,603 $923,632 $3,323,820 $5,694,787 $5,393,913 $ - $3,596 $4,995 $ - $47,034 $56,970 $16,988 - - 1,753 - - 1,753 3,150 13 - - - 13 68,672 652 _ 652 537 1,950 - 556,242 - - 1,413,626 939,711 - - 689,518 - - 689,518 612,786 1,000 1,963 3,596 1,253,160 0 47,034 2,162,532 1,642,844 - - - - - 74,600 119,600 - 15,094 - 6,362 1,278 22,734 188,504 - - - - - - 7,397 - - - - - 315,326 (1,327) 149,721 (556,557) 917,270 3,275,508 3,119,595 3,435,568 1,327) 164,815 (556,557) 923,632 3,276,786 3,532,255 3,751,069 $636 $168,411 $696,603 $923,632 $3,323,820 $5,694,787 $5,393,913 129 This page intentionally left plank. 130 CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS Statement 44 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES Page 1 of 2 IN FUND BALANCE For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 Water Downtown Capital Surface Parking Improvement Management Maintenance Fund 401 Fund 403 Fund 405 Revenues: Special assessments $ _ $ _ $ _ Intergovernmental - _ Investment income _ 2,469 Other revenues: Miscellaneous _ _ _ Project reimbursement 68,372 - - Proceeds from sale of land - _ _ Total revenues 68,372 0 2,469 Expenditures: Other project expenditures 115,062 - 9,286 Revenue over (under) expenditures (46,690) 0 (6,817) Other financing sources (uses): Operating transfers in Operating transfers (out) _ _ _ Total other financing sources (uses) 0 0 0 Net increase (decrease) in fund balance (46,690) 0 (6,817) Fund balance (deficit) - January 1, as previously stated 65,665 18,788 42,499 Prior period adjustment /restatements - - (312) Fund balance (deficit) - January 1, as restated 65,665 18,788 42,187 Fund balance (deficit) - December 31 $18,975 $18,788 $35,370 131 CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 Medtronic TIF Capital Sheffield Development District #2 Improvement Redevelopment Fund 406 Fund 407 Fund 408 Fund 410 , Revenues: Special assessments $ _ $ _ $ - $ - Intergovernmental - - - _ Investment income - - - 108 Other revenues: Miscellaneous - - - _ Project reimbursement - - _ _ Proceeds from sale of land 359,948 - - 11,400 Total revenues 359,948 0 0 11,508 Expenditures: Other project expenditures 2,561 - - 26,315 Revenue over (under) expenditures 357,387 0 0 (14,807) Other financing sources (uses): Operating transfers in - - - 72,192 Operating transfers (out) - _ - - Total other financing sources (uses) 0 0 0 72,192 Net increase (decrease) in fund balance 357,387 0 0 57,385 Fund balance (deficit) - January 1, as previously stated (42,061) (2,243) 19,876 (738,571) Prior period adjustment /restatements - - - _ Fund balance (deficit) - January 1, as restated (42,061) (2,243) 19,876 (738,571) Fund balance (deficit) - December 31 $315,326 ($2,243) $19,876 ($681,186) 132 Statement 44 Page 2 of 2 Capital Improvement Capital Capital Capital Government Improvement Improvement Infrastructure Equipment Buildings Parks Projects Replacement Replacement Totals Fund 411 Fund 412 Fund 415 Fund 430 Fund 431 1998 1997 $ - $ - $543,108 $ - $ - $543,108 $536,143 - - 103,002 - - 103,002 - 4,737 8,258 - 54,730. 212,049 282,351 305,339 - - 38,773 - 5,724 44,497 15,312 - - 115,052 40,152 - 223,576 712,315 - - - - - 371,348 44,601 4,737 8,258 799,935 94,882 217,773 1,567,882 1,613,710 108,222 27,283 1,361,793 92,501 373,576 2,116,599 2,255,123 (103,485) (19,025) (561,858) 2,381 (155,803) (548,717) (641,413) - 50,000 - 100,000 140,000 362,192 517,622 - - - - - - (75,000) 0 50,000 0 100,000 140,000 362,192 442,622 (103,485) 30,975 (561,858) 102,381 (15,803) (186,525) (198,791) 103,330 134,604 7,397 827,697 3,314,088 3,751,069 3,949,860 (1,172) (764) (2,096) (6,446) (21,499) (32,289) - 102,158 133,840 5,301 821,251 3,292,589 3,718,780 3,949,860 ($1,327) $164,815 ($556,557) $923,632 $3,276,786 $3,532,255 $3,751,069 133 This page intentionally left blank. 134 ' ENTERPRISE FUNDS The authority for these types of funds is derived from Section 69(b) of the City Charter which ' allows for Utility or other Public Service Enterprise Funds. The Enterprise Funds are a member of the Proprietary Fund Type category, and, as such, are ' accounted for on the accrual basis of accounting. Revenues in the Enterprise Funds are recognized when they are earned and expenses are recognized when they are incurred. ' The Enterprise Funds are used to account for operations that are either financed and operated in a manner similar to private business enterprises or where the governing body has decided that periodic determination of revenues earned, expenses incurred, and /or net income is appropriate ' for capital maintenance, public policy, management control, accountability, or other purposes. Water Utility Fund - used to account for revenues and expenses associated with services to area residents. Sewer Utility Fund - used to account for revenues and expenses associated with sewer disposal within the City. i Refuse Utility Fund - used to account for revenues and expenses associated with organized collection of refuse and recycling in the City. Liquor Fund - used to account for revenues and expenses associated with the operation of three off -sale liquor stores. 135 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET December 31, 1998 With Comparative Totals For December 31, 1997 Statement 45 Totals Assets Water Sewer Refuse Liquor 1998 1997 Current assets: Cash and cash equivalents Receivables: Accounts Interest Due from other governmental units, current portion Due from other funds Prepayments Inventory, at cost Total current assets Long -term assets: Due from other governmental units, net of current portion Total long -term assets Fixed assets: Land Buildings Improvements other than buildings Machinery and equipment Construction in process Total Less: Accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Accrued salaries and withholdings payable Contracts payable - retained percentage Due to other governmental units Due to other funds Deposits Total current liabilities Fund equity: Contributed capital: Municipal funds Property owners /customers Federal funds Total contributed capital Retained earnings: Reserved for capital improvements Unreserved Total retained earnings Total fund equity Total liabilities and fund equity $623,407 $1,641,326 $485,375 $1,052,987 $3,803,095 $3,870,195 ' 278,601 239,331 285,557 143 803,632 825,198 27,408 6,267 14,191 9,370 6,810 36,638 37,108 ' - 12,824 - 741 13,565 62,698 101,568 684,191 556,242 169,000 1,511,001 897,916 - 101,568 590 58,557 - - 59,147 795 3,744 ' 2,475 - - 647,596 650,071 677,818 1,012,908 2,650,420 1,336,544 1,877,277 6,877,149 6,371,728 8,396 8,396 246,043 473,462 719,505 784,734 - 320,909 - - 320,909 358,556 703,241 0 320,909 0 0 320,909 358,556 2,205,098 - 21,578 2,473,348 3,125,158 2,068,091 45,223 36,586 - 4,360 86,169 86,169 4,361,592 459,958 55,612 6,000 181,631 703,201 501,886 1,344,962 1,622,825 3,250,768 3,512,315 2,890 103,409 6,869,382 6,387,867 $11,457,593 $10,956,267 250,436 475,916 10,557 356,838 1,093,747 1,087,543 107,010 136,664 - - 243,674 693,729 4,113,395 4,217,093 19,447 646,238 8,996,173 8,757,194 ' 1,905,343 2,317,150 9,543 504,602 4,736,638 4,531,211 2,208,052 1,899,943 9,904 141,636 4,259,535 4,225,983 $3,220,960 $4,871,272 $1,346,448 $2,018,913 $11,457,593 $10,956,267 , $2,584 $4,578 $1,486 $259,209 $267,857 $189,770 27,408 24,666 - 70,616 122,690 102,747 - 2,776 - 2,776 1,362 67,652 - 66,263 133,915 133,545 101,568 - 101,568 - 3,744 - - - 3,744 3,744 202,956 32,020 1,486 396,088 632,550 431,168 4,198 4,198 - - 8,396 8,396 246,043 473,462 719,505 784,734 453,000 - - 453,000 453,000 703,241 477,660 0 0 1,180,901 1,246,130 246,672 2,205,098 - 21,578 2,473,348 3,125,158 2,068,091 2,156,494 1,344,962 1,601,247 7,170,794 6,153,811 2,314,763 4,361,592 1,344,962 1,622,825 9,644,142 9,278,969 3,018,004 4,839,252 1,344,962 1,622,825 10,825,043 10,525,099 $3,220,960 $4,871,272 $1,346,448 $2,018,913 $11,457,593 $10,956,267 136 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENTERPRISE FUNDS Statement 46 COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 Nonoperating revenues (expenses): Investment income 46,697 146,399 69,823 50,743 Totals 301,774 Water Sewer Refuse Liquor 1998 1997 Operating revenues: Miscellaneous revenues 16,424 59,157 644 11,148 87,373 Charges for services: Miscellaneous expenses (6,554) (128,576) - (348) (135,478) Customer service $16,209 $ - $ - $ - $16,209 $22,295 Penalties 28,904 - - - 28,904 29,510 Sewer service charges - 1,113,112 - - 1,113,112 1,119,989 Refuse service charges - - 1,334,998 - 1,334,998 1,336,968 Charges for sales: 598,636 134,194 - 21,235 754,065 345,372 Water 1,236,405 - - - 1,236,405 1,165,918 Meter 9,463 - (126,682) - 9,463 5,026 Liquor - - - 1,847,218 1,847,218 1,778,709 Beer - - - 3,266,126 3,266,126 3,131,953 Wine - - - 596,178 596,178 602,123 Other - - - 658,167 658,167 622,381 Total operating revenues 1,290,981 1,113,112 1,334,998 6,367,689 10,106,780 9,814,872 Operating expenses: (4,635) (5,264) (27,318) - Retained earnings - January 1, as restated 2,290,412 Cost of sales and services 760,438 761,002 1,193,241 - 2,714,681 2,679,264 Distribution 362,056 288,098 - - 650,154 612,497 Administration 14,136 10,140 16,568 - 40,844 30,583 Recycling - - 11,968 - 11,968 23,629 Hazardous waste - - 3,004 - 3,004 3,273 Cost of goods sold - - - 5,009,923 5,009,923 4,878,712 Operating expense - - - 875,742 875,742 905,854 Depreciation 78,186 102,514 1,076 24,862 206,638 213,338 Total operating expenses 1,214,816 1,161,754 1,225,857 5,910,527 9,512,954 9,347,150 Net income (loss) from operations 76,165 (48,642) 109,141 457,162 593,826 467,722 Nonoperating revenues (expenses): Investment income 46,697 146,399 69,823 50,743 313,662 301,774 Intergovernmental - 5,000 57,340 - 62,340 62,423 Miscellaneous revenues 16,424 59,157 644 11,148 87,373 73,466 Miscellaneous expenses (6,554) (128,576) - (348) (135,478) (149,733) Total nonoperating revenues (expenses) 56,567 81,980 127,807 61,543 327,897 287,930 Net income before operating transfers 132,732 33,338 236,948 518,705 921,723 755,652 Operating transfers: Operating transfers in 598,636 134,194 - 21,235 754,065 345,372 Operating transfers (out) (733,311) (221,975) (126,682) (266,558) (1,348,526) (874,727) Total operating transfers (134,675) (87,781) (126,682) (245,323) (594,461) (529,355) Net income (loss) (1,943) (54,443) 110,266 273,382 327,262 226,297 Credit for depreciation on contributed assets 26,294 38,935 - - 65,229 65,229 Retained earnings - January 1, as previously stated 2,296,704 4,388,227 1,239,331 1,354,707 9,278,969 8,987,443 Prior period adjustment /restatements (6,292) (11,127) (4,635) (5,264) (27,318) - Retained earnings - January 1, as restated 2,290,412 4,377,100 1,234,696 1,349,443 9,251,651 8,987,443 Retained earnings - December 31 $2,314,763 $4,361,592 $1,344,962 $1,622,825 $9,644,142 $9,278,969 137 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 1998 With Comparative Totals For the Year Ended December 31, 1997 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 Cash flows from investing activities: Investment income Net increase (decrease) in cash and cash equivalents Statement 47 Totals Water Sewer Refuse Liquor 1998 1997 $1,185,244 $1,244,651 $803,077 $6,369,070 $9,602,042 $9,902,392 (841,948) (963,213) (1,223,295) (5,231,129) (8,259,585) (8,422,586) (198,042) (162,863) - (515,051) (875,956) (843,308) 16,424 64,157 57,984 11,148 149,713 135,889 6,554 128,576 - 348 135,478 149,733 155,124 542156 362,234 633,690 480;736 622,654 598,636 134,194 - 21,235 754,065 345,372 733,311 221,975 126,682 266,558 1,348,526 874,727 134,675 87,781 126,682 245,323 594,461 529,355 112,519 122,336 2,349 2,985 240,189 427,442 49,689 148,578 64,187 51,678 314,132 299,653 42,381 7,383 427,078 437,060 39,782 34,490 Cash and cash equivalents - January 1, as previously stated 672,080 1,659,836 917,088 621,191 3,870,195 3,904,685 16,424 Prior period adjustment /restatements 6,292 11,127 4,635 5,264 27,318 - ' Cash and cash equivalents - January 1, as restated 665,788 1,648,709 912,453 615,927 3,842,877 3,904,685 1,076 Cash and cash equivalents - December 31 $623,407 $1,641,326 $485,375 $1,052,987 $3,803,095 $3,870,195 (130) Reconciliation of operating income (loss) to (49,272) (101,568) 73,637 44,725 11,633 (556,242) 1,510 - 86,780 (613,085) Net cash flows from operating activities (24) (58,478) 150 (58,352) (207) Operating income 1,196 - - 26,550 27,746 (48,352) (loss) $76,165 $48,642 $109,141 $457,162 $593,826 $467,722 ' 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 due to other funds Total adjustments Net cash flows from operating activities ' 16,424 64,157 57,984 11,148 149,713 135,889 (6,554) (128,576) - (348) (135,478) (149,733) 78,186 102,514 1,076 24,862 206,638 213,338 (4,169) 13,177 12,688 (130) 21,566 (49,272) (101,568) 73,637 44,725 11,633 (556,242) 1,510 - 86,780 (613,085) 93,787 43,005 (24) (58,478) 150 (58,352) (207) 1,196 - - 26,550 27,746 (48,352) (12,566) (13,874) 1,486 104,455 79,501 (103,138) ' 7,747 5,516 - 6,680 19,943 5,416 (1,281) - - 1,651 370 14,199 101,568 - - 101,568 - 78,959 102,798 471,375 176,528 113,090 154,932 $155,124 $54,156 $362,234 $633,690 $480,736 $622,654 ' 138 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UTILITY FUND BALANCE SHEET December 31, 1998 With Comparative Totals For December 31, 1997 Assets Current assets: Cash and cash equivalents Receivables: Accounts Interest Due from other funds Prepayments Inventory, at cost Total current assets Fixed assets: Land Buildings Improvements other than buildings Machinery and equipment Construction in process Total fixed assets Less: accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Liabilities: Accounts payable Accrued salaries and withholdings payable Due to other governmental units Due to other funds Deposits Total liabilities Fund equity: Contributed capital: Municipal funds Property owners Federal funds Total contributed capital Retained earnings: Reserved for capital replacement /construction Unreserved Total retained earnings Total fund equity Total liabilities and fund equity Capital Equipment Operating Replacement Account Account Statement 48 Capital Construction Totals Account 1998 1997 $384,602 $238,805 $ - $623,407 $672,080 277,991 - 610 278,601 274,432 4,452 1,815 - 6,267 9,259 101,568 - - 101,568 - 590 - - 590 566 2,475 - - 2,475 3,671 771,678 240,620 610 1,012,908 960,008 45,223 - - 45,223 45,223 459,958 - - 459,958 258,643 3,250,768 - - 3,250,768 2,878,447 250,436 - - 250,436 250,436 - - 107,010 107,010 568,127 4,006,385 0 107,010 4,113,395 4,000,876 1,905,343 - - 1,905,343 1,827,157 2,101,042 0 107,010 2,208,052 2,173,719 $2,872,720 $240,620 $107,620 $3,220,960 $3,133,727 $2,584 $ - $ - $2,584 $15,150 27,408 - - 27,408 19,661 67,652 - - 67,652 68,933 - - 101,568 101,568 - 3,744 - - 3,744 3,744 101,388 0 101,568 202,956 107,488 4,198 - - 4,198 4,198 246,043 - - 246,043 272,337 453,000 - - 453,000 453,000 703,241 0 0 703,241 729,535 - 240,620 6,052 246,672 820,746 2,068,091 - - 2,068,091 1,475,958 2,068,091 240,620 6,052 2,314,763 2,296,704 2,771,332 240,620 6,052 3,018,004 3,026,239 $2,872,720 $240,620 $107,620 $3,220,960 $3,133,727 139 CITY OF COLUMBIA HEIGHTS, MINNESOTA , WATER UTILITY FUND Statement 49 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 ' Capital Equipment Capital ' Operating Replacement Construction Totals Account Account Account 1998 1997 Operating revenues: Charges for services: Customer services Penalties Charges for sales: Water sales Meter sales Total operating revenues Operating expenses: Cost of sales and services Distribution Administration Depreciation Total operating expenses $16,209 $ - $ - $16,209 $22,295 76,165 28,904 - - 28,904 29,510 ' 1,236,405 - - 1,236,405 1,165,918 9,463 - - 9,463 5,026 ' 1,290,981 0 0 1,290,981 1,222,749 Miscellaneous revenues 760,438 - - 760,438 712,368 16,270 362,056 - - 362,056 365,443 14,136 - - 14,136 10,916 - 78,186 - - 78,186 ' 67,459 56,567 1,214,816 0 0 1,214,816 1,156,186 Net income from operations 76,165 0 0 76,165 66,563 , Nonoperating revenues (expenses): , Credit for depreciation on contributed assets 26,294 Investment income 33,171 13,526 - 46,697 59,420 ' Miscellaneous revenues 280 - 16,144 16,424 16,270 ' Miscellaneous expenses - - (6,554) (6,554) (11,933) - Total nonoperating revenues (expenses) 33,451 13,526 9,590 56,567 63,757 ' Net income before operating transfers Operating transfers: Operating transfers in Operating transfers (out) Total operating transfers 109,616 13,526 9,590 132,732 130,320 573,636 25,000 - 598,636 271,855 (112,781) - (620,530) (733,311) (354,439) ' 460,855 25,000 (620,530) (134,675) (82,584) Net income (loss) 570,471 38,526 (610,940) (1,943) 47,736 , Credit for depreciation on contributed assets 26,294 - - 26,294 26,294 Retained earnings - January 1, as previously stated 1,475,958 203,378 617,368 2,296,704 2,222,674 ' Prior period adjustment /restatements (4,632) (1,284) (376) (6,292) - Retained earnings - January 1, as restated 1,471,326 202,094 616,992 2,290,412 2,222,674 Retained earnings - December 31 $2,068,091 $240,620 $6,052 $2,314,763 $2,296,704 140 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UTILITY FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1998 With Comparative Totals For the Year Ended December 31, 1997 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: Investment income Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - January 1, as previously stated Prior period adjustment /restatements Cash and cash equivalents - January 1, as restated 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 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 due to other funds Total adjustments Net cash flows from operating activities 141 Statement 50 1998 1997 $1,185,244 $1,225,668 (841,948) (848,013) (198,042) (222,021) 16,424 16,270 (6,554) (11,933) 155,124 159,971 598,636 271,855 (733,311) (354,439) (134,675) (82,584) (112,519) (309,254) 49,689 59,113 (42,381) 672,080 (6,292) 665,788 $623,407 (172,754) 844,834 844,834 $672,080 $76,165 $66,563 16,424 16,270 (6,554) (11,933) 78,186 67,459 (4,169) 2,919 (101,568) - (24) (338) 1,196 (1,218) (12,566) 12,795 7,747 (2,129) (1,281) 9,583 101,568 - 78,959 93,408 $155,124 $159,971 CITY OF COLUMBIA HEIGHTS, MINNESOTA I SEWER UTILITY FUND Statement 51 BALANCE SHEET ' December 31, 1998 With Comparative Totals For December 31, 1997 Capital Equipment Capital Operating Replacement Construction Totals ' Account Account Account 1998 1997 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: $262,393 $316,986 $1,061,947 $1,641,326 $1,659,836 ' 239,331 - - 239,331 252,508 ' 1,971 2,460 9,760 14,191 16,370 12,824 - - 12,824 48,814 - - 684,191 684,191 728,916 58,557 - - 58,557 79 575,076 319,446 1,755,898 2,650,420 2,706,523 319,446 1,885,652 4,839,252 4,904,822 $2,659,264 320,909 - - 320,909 358,556 ' 36,586 - - 36,586 36,586 55,612 - - 55,612 55,612 3,512,315 - - 3,512,315 3,403,121 475,916 - - 475,916 475,046 - - 136,664 136,664 125,602 4,080,429 0 136,664 4,217,093 ' 4,095,967 2,317,150 - - 2,317,150 2,215,846 1,763,279 0 136,664 1,899,943 1,880,121 $2,659,264 $319,446 $1,892,562 $4,871,272 $4,945,200 Accounts payable $444 $ - $4,134 $4,578 $19,866 Accrued salaries and withholdings payable 24,666 - - 24,666 19,150 Contracts payable - retained percentage - - 2,776 2,776 1,362 Total liabilities 25,110 0 6,910 32,020 40,378 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 4,198 - - 4,198 4,198 473,462 - - 473,462 512,397 477,660 0 0 477,660 516,595 - 319,446 1,885,652 2,205,098 2,304,412 2,156,494 - - 2,156,494 2,083,815 2,156,494 319,446 1,885,652 4,361,592 4,388,227 2,634,154 319,446 1,885,652 4,839,252 4,904,822 $2,659,264 $319,446 $1,892,562 $4,871,272 $4,945,200 142 CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND Statement 52 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 Operating revenues: Charges for sales and services: Sewer service charges Operating expenses: Cost of sales and services Distribution Administration Depreciation Total operating expenses Net income (loss) from operations Nonoperating revenues (expenses) Capital Equipment Capital Operating Replacement Construction Totals Account Account Account 1998 1997 $1,113,112 $ - $ - $1,113,112 $1,119,989 148,886 761,002 - - 761,002 764,482 288,098 - - 288,098 247,054 10,140 - - 10,140 9,919 102,514 - - 102,514 105,194 1,161,754 0 0 1,161,754 1,126,649 (48,642) 0 0 (48,642) (6,660) Investment income 29,028 18,331 99,040 146,399 148,886 Intergovernmental - - 5,000 5,000 - Miscellaneous revenues 58,189 - 968 59,157 25,298 Miscellaneous expenses - - (128,576) (128,576) (23,905) Total nonoperating revenues (expenses) 87,217 18,331 (23,568) 81,980 150,279 Net income (loss) before operating transfer Operating transfers: Operating transfers in Operating transfers (out) Total operating transfers 38,575 18,331 (23,568) 33,338 143,619 109,194 25,000 - 134,194 73,517 (112,781) - (109,194) (221,975) (156,101) (3,587) 25,000 (109,194) (87,781) (82,584) Net income (loss) 34,988 43,331 (132,762) (54,443) 61,035 Credit for depreciation on contributed assets 38,935 - - 38,935 38,935 Retained earnings - January 1, as previously stated 2,083,815 277,841 2,026,571 4,388,227 4,288,257 Prior period adjustment /restatements (1,244) 1,726 (8,157) (11,127) - Retained earnings - January 1, as restated 2,082,571 276,115 2,018,414 4,377,100 4,288,257 Retained earnings - December 31 $2,156,494 $319,446 $1,885,652 $4,361,592 $4,388,227 143 CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1998 With Comparative Totals For the Year Ended December 31, 1997 Statement 53 144 1998 1997 Cash flows from operating activities: Cash received from customers $1,244,651 $1,232,349 Cash paid to suppliers for goods and services (963,213) (901,241) Cash payments to employees for services (162,863) (126,210) Miscellaneous revenues 64,157 25,298 Miscellaneous expenses (128,576 (23,905) Net cash flows from operating activities 54,156 206,291 Cash flows from noncapital financing activities: Operating transfers in 134,194 73,517 Operating transfers (out) (221,975 (156,101) Net cash flows from noncapital financing activities (87,781 (82,584) Cash flows from capital and related financing activities: Acquisition of fixed assets (122,336) (118,188) Cash flows from investing activities: Investment income 148,578 145,110 Net increase (decrease) in cash and cash equivalents (7,383) 150,629 Cash and cash equivalents - January 1, as previously stated 1,659,836 1,509,207 Prior period adjustment /restatements (11,127) - Cash and cash equivalents - January 1, as restated 1,648,709 1,509,207 Cash and cash equivalents - December 31 $1,641,326 $1,659,836 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) ($48,642) ($6,660) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues 64,157 25,298 Miscellaneous expenses (128,576) (23,905) Depreciation expense 102,514 105,194 Changes in assets and liabilities: (Increase) decrease in accounts receivable 13,177 (13,633) (Increase) decrease in due from other governmental units 73,637 82,988 (Increase) decrease in due from other funds 44,725 43,005 (Increase) decrease in prepayments (58,478) 13 Increase (decrease) in accounts payable (13,874) (8,554) Increase (decrease) in accrued salaries and withholdings payable 5,516 2,545 Total adjustments 102,798 212,951 Net cash flows from operating activities $54,156 $206,291 144 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND Statement 54 BALANCE SHEET December 31, 1998 With Comparative Totals For December 31, 1997 Assets Current assets: Cash and cash equivalents Receivables: Accounts Interest Due from other governmental units Due from other funds Total current assets Fixed assets: Buildings Improvements other than buildings Machinery and equipment Total fixed assets Less: accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Total liabilities Fund equity: Retained earnings: Unreserved Total liabilities and fund equity 145 1998 $485,375 285,557 9,370 556,242 1,336,544 6,000 2,890 10,557 19,447 9,543 9,904 $1,346,448 $1,486 1,486 1,344,962 $1,346,448 1997 $917,088 298,245 3,734 11,633 1,230,700 6,000 2,890 8,208 17,098 8,467 8,631 $1,239,331 1,239,331 $1,239,331 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND Statement 55 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 146 1998 1997 Operating revenues: Refuse service charges $1,334,998 $1,336,968 Operating expenses: Cost of sales and services 1,193,241 1,202,414 Administration 16,568 9,748 Recycling 11,968 23,629 Hazardous waste 3,004 3,273 Depreciation 1,076 1,360 Total operating expenses 1,225,857 1,240,424 Net income from operations 109,141 96,544 Nonoperating revenues (expenses): Investment income 69,823 43,764 Intergovernmental 57,340 62,423 Miscellaneous revenues 644 22,982 Total nonoperating revenues (expenses) 127,807 129,169 Net income before operating transfers 236,948 225,713 Operating transfers: Operating transfers (out) (126,682) (119,218) Net income 110,266 106,495 Retained earnings - January 1, as previously stated 1,239,331 1,132,836 Prior period adjustment /restatements (4,635) - Retained earnings - January 1, as restated 1,234,696 1,132,836 Retained earnings - December 31 $1,344,962 $1,239,331 146 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND Statement 56 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1998 With Comparative Totals For the Year Ended December 31, 1997 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 (out) Cash flows from capital and related financing activities: Acquisition of fixed assets Cash flows from investing activities: Investment income Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - January 1, as previously stated Prior period adjustment /restatements Cash and cash equivalents - January 1, as restated Cash and cash equivalents - December 31 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in due from other governmental units (Increase) decrease in due from other funds Increase (decrease) in accounts payable Total adjustments Net cash flows from operating activities 147 1998 $803,077 (1,223,295) 57,984 (362,234) $1,308,967 (1,239,193) 85,405 155,179 (126,682) (119,218) (2,349) 64,187 (427,078) 917,088 (4,635) 912,453 $485,375 47,171 83,132 833,956 833,956 $917,088 $109,141 $96,544 57,984 1,076 12,688 11,633 (556,242) 1,486 (471,375) ($362,234) 85,405 1,360 (38,645) 10,644 (129) 58,635 $155, 179 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND BALANCE SHEET December 31, 1998 With Comparative Totals For December 31, 1997 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: Reserved for capital replacement Unreserved Total retained earnings Total liabilities and fund equity Statement 57 Capital Equipment Operating Replacement Totals Account Account 1998 1997 $1,031,455 $21,532 $1,052,987 $621,191 143 - 143 13 6,764 46 6,810 7,745 741 - 741 2,251 169,000 - 169,000 169,000 - - - 150 647,596 - 647,596 674,147 1,855,699 21,578 1,877,277 1,474,497 1,601,247 1,354,707 4,360 - 4,360 4,360 181,631 - 181,631 181,631 103,409 - 103,409 103,409 356,838 - 356,838 353,853 646,238 0 646,238 643,253 504,602 - 504,602 479,741 141,636 0 141,636 163,512 $1,997,335 $21,578 $2,018,913 $1,638,009 $259,209 $ - $259,209 $154,754 70,616 - 70,616 63,936 66,263 - 66,263 64,612 396,088 0 396,088 283,302 - 21,578 21,578 - 1,601,247 - 1,601,247 1,354,707 1,601,247 21,578 1,622,825 1,354,707 $1,997,335 $21,578 $2,018,913 $1,638,009 148 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND Statement 58 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 Operating expenses: Cost of goods sold 2,452,412 1,477,436 1,080,075 5,009,923 Capital 4,878,712 Operating expense 476,518 254,241 Operating Accounts Total Equipment 905,854 Depreciation 5,443 14,509 Top Heights Operating Replacement Totals 2,934,373 1,746,186 Top Valu Valu II Liquor Accounts Account 1998 1997 Operating revenues: $181,752 457,162 0 457,162 311,275 Nonoperating revenues (expenses): Charges for sales: Investment income Liquor $928,757 $526,747 $391,714 $1,847,218 $ - $1,847,218 $1,778,709 Beer 1,479,785 976,257 810,084 3,266,126 - 3,266,126 3,131,953 Wine 323,346 201,794 71,038 596,178 - 596,178 602,123 Other 354,459 164,824 138,884 658,167 - 658,167 622,381 Total operating revenues 3,086,347 1,869,622 1,411,720 6,367,689 0 6,367,689 6,135,166 Operating expenses: Cost of goods sold 2,452,412 1,477,436 1,080,075 5,009,923 - 5,009,923 4,878,712 Operating expense 476,518 254,241 144,983 875,742 - 875,742 905,854 Depreciation 5,443 14,509 4,910 24,862 - 24,862 39,325 Total operating expenses 2,934,373 1,746,186 1,229,968 5,910,527 0 5,910,527 5,823,891 Net income from operations $151,974 $123,436 $181,752 457,162 0 457,162 311,275 Nonoperating revenues (expenses): Investment income 50,400 343 50,743 49,704 Miscellaneous revenues 11,148 - 11,148 8,916 Miscellaneous expenses (348) - 348 (113,895) Total nonoperating revenues (expenses) 61,200 343 61,543 55,275 Net income before operating transfers Operating transfers: Operating transfers in Operating transfers (out) Total operating transfers Net income Retained earnings - January 1, as previously stated Prior period adjustment /restatements Retained earnings - January 1, as restated Retained earnings - December 31 .K 518,362 343 518,705 256,000 - 21,235 21,235 - (266,558) - 266,558 244,969 266,558 21,235 245,323 244,969 251,804 21,578 273,382 11,031 1,354,707 - 1,354,707 1,343,676 (5,264) - (5,264) - 1,349,443 0 1,349,443 1,343,676 $1,601,247 $21,578 $1,622,825 $1,354,707 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1998 With Comparative Totals For the Year Ended December 31, 1997 Statement 59 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income 1998 1997 Cash flows from operating activities: Cash received from customers $6,369,070 $6,135,408 Cash paid to suppliers for goods and services (5,231,129) (5,434,139) Cash payments to employees for services (515,051) (495,077) Miscellaneous revenues 11,148 8,916 Miscellaneous expenses (348) (113,895) Net cash flows from operating activities 633,690 101,213 Cash flows from noncapital financing activities: 1,510 155 Operating transfers in 21,235 - Operating transfers (out) (266,558) (244,969) Net cash flows from noncapital financing activities (245,323) (244,969) Cash flows from capital and related financing activities: 6,680 5,000 Acquisition of fixed assets (2,985) - Cash flows from investing activities: 176,528 (210,062) Investment income 51,678 48,259 Net increase (decrease) in cash and cash equivalents 437,060 (95,497) Cash and cash equivalents - January 1, as previously stated 621,191 716,688 Prior period adjustment /restatements (5,264) - Cash and cash equivalents - January 1, as restated 615,927 716,688 Cash and cash equivalents - December 31 $1,052,987 $621,191 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income $457,162 $311,275 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues 11,148 8,916 Miscellaneous expenses (348) (113,895) Depreciation expense 24,862 39,325 Changes in assets and liabilities: (Increase) decrease in accounts receivable (130) 87 (Increase) decrease in due from other governmental units 1,510 155 (Increase) decrease in prepayments 150 118 (Increase) decrease in inventory, at cost 26,550 (47,134) Increase (decrease) in accounts payable 104,455 (107,250) Increase (decrease) in accrued salaries and withholdings payable 6,680 5,000 Increase (decrease) in due to other governmental units 1,651 4,616 Total adjustments 176,528 (210,062) Net cash flows from operating activities $633,690 $101,213 150 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. 151 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1998 With Comparative Totals For December 31, 1997 Assets Current assets: Cash and cash equivalents Receivables: Accounts Interest Prepayments Inventory, at cost Total current assets Fixed assets: Buildings Improvements other than buildings Machinery and equipment Total fixed assets Less: accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Claims payable Accrued salaries and withholdings payable Capital lease payable current Accrued interest payable Total current liabilities Long -term liabilities: Compensated absences payable Capital lease payable net of current Total liabilities Fund equity: Contributed capital: Municipal funds Property owners Total contributed capital Retained earnings: Reserved for insurance Reserved for capital improvements Unreserved Total retained earnings Total fund equity Total liabilities and fund equity Central Energy Data Compensated Garage Management Processing Insurance Absences Statement 60 Totals 1998 1997 1 $242,662 $290 $78,706 $913,332 $530,959 $1,765,949 $1,822,106 - - - 568 - 568 330 2,239 - 369 8,068 4,383 15,059 18,240 276 10,970 30 61,846 - 73,122 63,330 74,326 - - - 74,326 70,218 319,503 11,260 79,105 983,814 535,342 1,929,024 1,974,224 354,453 395,871 - - 750,324 747,378 121,550 314,910 - 436,460 436,460 91,290 - 80,005 171,295 163,397 567,293 710,781 80,005 0 0 1,358,079 1,347,235 315,111 609,200 62,666 986,977 836,726 252,182 101,581 17,339 0 0 371,102 510,509 $571,685 $112,841 $96,444 $983,814 $535,342 $2,300,126 $2,484,733 $5,091 $117 $7,232 $4,415 $ - $16,855 $46,872 - - - 200,000 - 200,000 - 20,737 - 10,162 - - 30,899 26,257 - 113,915 - - 113,915 108,910 - 868 - - 868 1,743 25,828 114,900 17,394 204,415 0 362,537 183,782 - - 471,029 471,029 471,224 58,907 - - - 58,907 172,822 25,828 173,807 17,394 204,415 471,029 892,473 827,828 124,196 124,196 124,196 64,653 - 64,653 64,653 188,849 0 0 0 0 188,849 188,849 - 779,399 779,399 1,054,055 37,194 7,834 - - 45,028 31,355 319,814 (60,966) 71,216 - 64,313 394,377 382,646 357,008 60,966 79,050 779,399 64,313 1,218,804 1,468,056 545,857 60,966 79,050 779,399 64,313 1,407,653 1,656,905 $571,685 $112,841 $96,444 $983,814 $535,342 $2,300,126 $2,484,733 [1 152 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS Cost of services and space Statement 61 COMBII`IING STATEMENT OF REVENUES, EXPENSES AND 132,936 379,807 995,378 CHANGES IN RETAINED EARNINGS Claims administration (23,500) 13,000 For The Year Ended December 31, 1998 - 103,299 135,061 Claims With Comparative Totals For The Year Ended December 31, 1997 - 128,500 209,172 0 Central Energy Data Compensated Totals Garage Management Processing Insurance Absences 1998 1997 Operating revenues: Depreciation 34,723 101,540 15,695 Charges for services: _ 151,958 157,131 Total operating expenses Services to departments $105,085 $247,061 $ - $ $ - $352,146 $333,535 Use of space 162,840 - Net income (loss) from operations 162,840 156,575 Insurance allocation I _ 317,053 = 317,053 313,501 Recovery of damages - $357,008 48,024 48,024 12,398 Charges for sales: $1,218,804 $1,468,056 Investment income 16,687 Sales of gasoline 45,439 - - - 45,439 54,611 Total operating revenues 313,364 247,061 0 365,077 0 925,502 870,620 Operating expenses: Cost of services and space 293,565 189,070 132,936 379,807 995,378 786,946 Claims administration (23,500) 13,000 103,299 - 103,299 135,061 Claims (19,500) - 128,500 209,172 0 209,172 81,206 Insurance deductible - - - (267,085) 32,659 - 379 Depreciation 34,723 101,540 15,695 _ _ 151,958 157,131 Total operating expenses 328,288 290,610 148,631 692,278 0 1,459,807 1,160,723 Net income (loss) from operations (14,924) 43,549 148,631 (327,201) 0 534,305 290,103 Nonoperating revenues (expenses): $357,008 $60,966 $79,050 $779,399 $64,313 $1,218,804 $1,468,056 Investment income 16,687 2 60,116 32,659 112,207 117,048 ' Miscellaneous revenues 3,807 = -745 3,807 3,953 Interest expense (10,706) (10,706) (15,722) Miscellaneous expense - 5,340 - - (5,340) - Total nonoperating revenues (expenses) 20,494 10,706 (2,595) 60,116 32,659 99,968 105,279 Net income (loss) before operating transfers 5,570 54,255 151,226 (267,085) 32,659 (434,337) (184,824) ' Operating transfers: Operating transfers in 4,000 88,480 141,500 233,980 246,511 Operating transfers (out) (23,500) 13,000 - (36,500) (32,511) Total operating transfers (19,500) 88,480 128,500 0 0 197,480 214,000 Net income (loss) (13,930) 34,225 22,726 (267,085) 32,659 236,857 29,176 Retained earnings - January 1, as previously stated 372,437 (95,191) 101,776 1,054,055 34,979 1,468,056 1,438,880 Prior period adjustment /restatements (1,499) (7,571) (3,325) (12,395) Retained earnings - January 1, as restated 370,938 95,191 101,776 1,046,484 31,654 1,455,661 1,438,880 Retained earnings - December 31 $357,008 $60,966 $79,050 $779,399 $64,313 $1,218,804 $1,468,056 153 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS Statement 62 COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 1998 With Comparative Totals For the Year Ended December 31, 1997 Cash flows from operating activities: Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues Miscellaneous expenses Net cash flows from operating activities Cash flows from noncapital financing activities: Operating transfers in Operating transfers (out) Net cash flows from noncapital financing activities Cash flows from capital and related financing activities: Acquisition of fixed assets Disposition of fixed assets Interest expense Net cash flows from capital and related financing activities Cash flows from investing activities: Investment income Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - January 1, as previously stated Prior period adjustment /restatements Cash and cash equivalents - January 1, as restated 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 prepayments (Increase) decrease in inventory, at cost Increase (decrease) in accounts payable Increase (decrease) in claims payable Increase (decrease) in, accrued salaries and withholdings payable Increase (decrease) in capital lease payable Increase (decrease) in accrued interest payable Total adjustments Net cash flows from operating activities Central Energy Data Compensated Totals Garage Management Processing Insurance Absences 1998 1997 9,043 (422) 8,156 77,201 32,974 $313,439 $247,061 $ - $364,764 $ - $925,264 $870,518 (161,330) (325,257) (20,145) (505,153) (195) (1,012,080) (911,768) (141,081) (103,943) (245,024) (192,579) 3,807 3,325 3,807 3,953 - 5,340 5,340 - 14,835 78,196 129,428 140,389 (195) 333,373 229,876 4,000 88,480 141,500 233,980 246,511 23,500 13,000 36,500 32,511 19,500 88,480 128,500 0 0 197,480 214,000 1 1 (2,947) (9,658) (12,605) (17,104) - 54 - - 54 ' 10,706 10,706 15,722 2,947 10,706 9,604 0 0 23,257 32,826 16,655 - 2,376 63,188 33,169 115,388 113,537 9,043 (422) 8,156 77,201 32,974 43,762 64,835 235,118 712 86,862 998,104 501,310 1,822,106 1,757,271 1,499 - (9,571) 7,571 3,325 12,395 - 233,619 712 86,862 990,533 497,985 1,809,711 1,757,271 $242,662 $290 $78,706 $913,332 $530,959 $1,765,949 $1,822,106 $14,924 $43,549 $148,631 $327,201 $ $534,305 $290,103 3,807 3,807 3,953 - - (5,340) (5,340) - 34,723 101,540 15,695 151,958 157,131 75 - - (313) (238) (102) 48 (388) 119 (9,571) (9,792) (35,363) (4,108) - - (4,108) 15,236 (7,159) (26,014) 6,460 (3,304) (30,017) 14,902 - 200,000 200,000 - 2,373 2,269 (195) 4,447 9,238 - (108,910) - - (108,910) (104,124) 875 - 875 644 29,759 34,647 19,203 186,812 195 200,932 60,227 $14,835 $78,196 $129,428 $140,389 $195 $333,373 $229,876 154 CITY OF COLUMBIA HEIGHTS, MINNESOTA CENTRAL GARAGE FUND 'BALANCE SHEET December 31, 1998 With Comparative Totals For December 31, 1997 Assets Current assets: Cash and cash equivalents Receivables: Accounts Interest Prepayments Inventory, at cost Total current assets Fixed assets: Buildings Improvements other than buildings Machinery and equipment Total fixed assets Less: accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Accrued salaries and withholdings payable Total liabilities Fund equity: Contributed capital: Municipal funds Property owners ' Total contributed capital Retained earnings: Reserved for capital improvements ' Unreserved Total retained earnings Total fund equity tTotal liabilities and fund equity Capital Equipment Operating Replacement Account Account Statement 63 Totals 1998 1997 $205,748 $36,914 $242,662 $235,118 - - - 75 1,959 280 2,239 2,207 276 - 276 324 74,326 - 74,326 70,218 282,309 37,194 319,503 307,942 508,663 354,453 - 354,453 351,507 121,550 - 121,550 121,550 91,290 - 91,290 92,810 567,293 0 567,293 565,867 315,111 - 315,111 281,909 252,182 0 252,182 283,958 $534,491 $37,194 $571,685 $591,900 $5,091 $ - $5,091 $12,250 20,737 - 20,737 18,364 25,828 0 25,828 30,614 124,196 - 124,196 124,196 64,653 - 64,653 64,653 188,849 0 188,849 188,849 - 37,194 37,194 31,355 319,814 - 319,814 341,082 319,814 37,194 357,008 372,437 508,663 37,194 545,857 561,286 $534,491 $37,194 $571,685 $591,900 155 f 156 , CITY OF COLUMBIA HEIGHTS, MINNESOTA CENTRAL GARAGE FUND Statement 64 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ' For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 ' Capital Equipment Operating Replacement Totals Account Account 1998 1997 Operating revenues: for services: ,Charges Services to departments $105,085 $ - $105,085 $122,752 Use of space 162,840 - 162,840 156,575 Charges for sales: Sales of gasoline 45,439 - 45,439 54,611 Total operating revenues 313,364 0 313,364 333,938 ' Operating expenses: Cost of services and space 293,565 - 293,565 275,443 Depreciation 34,723 - 34,723 33,778 , Total operating expenses 328,288 0 328,288 309,221 Net income (loss) from operations (14,924) 0 (14,924) 24,717 Nonoperating revenues (expenses): Investment income 14,600 2,087 16,687 14,159 Miscellaneous revenues 3,807 - 3,807 3,634 ' Total nonoperating revenues (expenses) 18,407 2,087 20,494 17,793 Net income before operating transfers 3,483 2,087 5,570 42,510 Operating transfers: Operating transfers in - 4,000 4,000 13,011 ' Operating transfers (out) (23,500) - (23,500 (32,511) Total operating transfers (23,500) 4,000 (19,500) (19,500) Net income (loss) (20,017) 6,087 (13,930 23,010 Retained earnings - January 1, as previously stated 341,082 31,355 372,437 349,427 Prior period adjustment /restatements (1,251) (248) (1,499) - Retained earnings - January 1, as restated 339,831 31,107 370,938 349,427 Retained earnings - December 31 $319,814 $37,194 $357,008 $372,437 f 156 , CITY OF COLUMBIA HEIGHTS, MINNESOTA CENTRAL GARAGE FUND Statement 65 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1998 With Comparative Totals For the Year Ended December 31, 1997 Cash flows from operating activities: Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues Net cash flows from operating activities Cash flows from noncapital financing activities: Operating transfers in Operating transfers (out) Net cash flows from noncapital financing activities Cash flows from capital and related financing activities: Acquisition of fixed assets Cash flows from investing activities: Investment income Net increase in cash and cash equivalents Cash and cash equivalents - January 1, as previously stated Prior period adjustment /restatements Cash and cash equivalents - January 1, as restated Cash and cash equivalents - December 31 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in 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 157 1998 1997 $313,439 $333,907 (161,330) (124,592) (141,081) (131,912) 3,807 3,634 14,835 81,037 4,000 13,011 (23,500) (32,511) (19,500) (19,500) (2,947) (9,011) 16,655 13,668 9,043 66,194 235,118 168,924 (1,499) - 233,619 168,924 $242,662 $235,118 ($14,924) $24,717 3,807 34,723 75 48 (4,108) (7,159) 2,373 29,759 $14,835 3,634 33,778 (31) 15,236 8,040 (4,337) 56,320 $81,037 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENERGY MANAGEMENT FUND Statement 66 BALANCE SHEET December 31, 1998 With Comparative Totals For December 31, 1997 1998 1997 Assets Current assets: Cash and cash equivalents $290 $712 Prepayments 10,970 10,582 Total current assets 11,260 11,294 Fixed assets: 114,900 136,784 Buildings 395,871 395,871 Improvements other than buildings 314,910 314,910 Total fixed assets 710,781 710,781 Less: accumulated depreciation 609,200 507,660 Net fixed assets 101,581 203,121 Total assets $112,841 $214,415 Liabilities and Fund Equity Current liabilities: Accounts payable $117 $26,131 Capital lease payable current 113,915 108,910 Accrued interest payable 868 1,743 Total current liabilities 114,900 136,784 Long -term liabilities: Capital lease payable net of current 58,907 172,822 Total liabilities 173,807 309,606 Retained earnings: Unreserved (60,966) (95,191) Total liabilities and fund equity $112,841 $214,415 158 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENERGY MANAGEMENT FUND Statement 67 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 1998 1997 Operating revenues: Charges for services: Services to departments $247,061 $210,783 Operating expenses: 1 Cost of services and space 189,070 200,658 Depreciation 101,540 101,520 Total operating expenses 290,610 302,178 rNet income (loss) from operations (43,549) (91,395) Nonoperating revenues (expenses): Miscelleaneous revenues 1 150 Interest expense (10,706) (15,722) Total nonoperating revenues (expenses) (10,706) (15,572) Net income (loss) before operating transfers (54,255) (106,967) Operating transfers: Operating transfers in 88,480 105,000 Net income (loss) 34,225 (1,967) Retained earnings - January 1 (95,191) (93,224) fRetained earnings - December 31 ($60,966) ($95,191) 1 159 CITY OF COLUMBIA HEIGHTS, MINNESOTA ENERGY MANAGEMENT FUND Statement 68 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1998 With Comparative Totals For the Year Ended December 31, 1997 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 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 1998 $247,061 (325,257) 1997 $210,783 (299,499) 150 (78,196) (88,566) 88,480 105,000 (10,706) (422) 712 $290 (15,722) 712 $712 160 , ($43,549) ($91,395) - 101,540 150 101,520 (388) (338) (26,014) 6,265 (108,910) (104,124) (875) (644) (34,647) 2,829 ($78,196) ($88,566) 160 , CITY OF COLUMBIA HEIGHTS, MINNESOTA DATA PROCESSING FUND Statement 69 BALANCE SHEET December 31, 1998 With Comparative Totals For December 31, 1997 Capital Equipment Operating Replacement Totals Assets Current assets: Cash and cash equivalents $70,888 $7,818 $78,706 $86,862 Interest receivable 353 16 369 - Prepayments 30 - 30 149 Total current assets 71,271 7,834 79,105 87,011 Fixed assets: Machinery and equipment 80,005 - 80,005 70,587 Total fixed assets 80,005 0 80,005 70,587 Less: accumulated depreciation 62,666 - 62,666 47,157 Net fixed assets 17,339 0 17,339 23,430 Total assets $88,610 $7,834 $96,444 $110,441 Liabilities and Fund Equity Current liabilities: Accounts payable $7,232 $ - $7,232 $772 Accrued salaries and withholdings payable 10,162 - 10,162 7,893 Total liabilities 17,394 0 17,394 8,665 Retained earnings: Reserved for capital improvements - 7,834 7,834 - Unreserved 71,216 - 71,216 101,776 Total retained earnings 71,216 7,834 79,050 101,776 Total liabilities and fund equity $88,610 $7,834 $96,444 $110,441 161 CITY OF COLUMBIA HEIGHTS, MINNESOTA DATA PROCESSING FUND Statement 70 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 Capital Equipment Operating Replacement Totals Account Account 1998 1997 Operating revenues $ - $ _ $ _ $ - Operating expenses: Cost of services 132,936 - 132,936 98,431 Depreciation 15,695 - 15,695 21,833 Total operating expenses 148,631 0 148,631 120,264 Net income (loss) from operations (148,631) 0 (148,631) (120,264) Nonoperating revenues (expenses): Investment income 2,624 121 2,745 Miscellaneous revenues - - - 169 Miscellaneous expenses (53) 5,287 (5,340) - Total nonoperating revenues 2,571 (5,166) (2,595) 169 Net income (loss) before operating transfers (146,060) (5,166) (151,226) (120,095) Operating transfers: Operating transfers in 128,500 13,000 141,500 128,500 Operating transfers (out) (13,000) - (13,000) - Total operating transfers 115,500 13,000 128,500 128,500 Net income (loss) (30,560) 7,834 (22,726) 8,405 Retained earnings - January 1 101,776 - 101,776 93,371 Retained earnings - December 31 $71,216 $7,834 $79,050 $101,776 I 1 162 , CITY OF COLUMBIA HEIGHTS, MINNESOTA DATA PROCESSING FUND Statement 71 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 Cash flows from operating activities: Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues Miscellaneous expenses Net cash flows from operating activities Cash flows from noncapital financing activities: Operating transfers in Operating transfers (out) Net cash flows from noncapital financing activities Cash flows from capital and related financing activities: Acquisition of fixed assets Disposition of fixed assets Net cash flows from capital and related financing activities Cash flows from investing activities: Investment income 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 prepayments ' Increase (decrease) in accounts payable Increase (decrease) in accrued salaries and withholdings payable Total adjustments Net cash flows from operating activities 163 1998 1997 ($20,145) (103,943) (5,340) (129,428) 141,500 (13,000) 128,500 (9,658) 54 (9,604) 2,376 (8,156) 86,862 $78,706 ($29,117) (60,667) 169 (89,615) 128,500 128,500 (8,093) (8,093) 30,792 56,070 $86,862 ($148,631) ($120,264) (5,340) 15,695 119 6,460 2,269 19,203 ($129,428) 169 21,833 2,647 772 5,228 30,649 ($89,615) CITY OF COLUMBIA HEIGHTS, MINNESOTA j INSURANCE FUND Statement 72 BALANCE SHEET December 31, 1998 ' With Comparative Totals For December 31, 1997 i 1998 1997 , Assets Current assets: Cash and cash equivalents $913,332 $998,104 Receivables: Accounts 568 255 Interest 8,068 11,140 Prepayments 61,846 52,275 Total assets $983,814 $1,061,774 Liabilities and Fund Equity Current liabilities: Accounts payable $4,415 $7,719 Claims payable 200,000 - Total current liabilities 204,415 7,719 Fund equity: ' Retained earnings: Reserved for insurance 779,399 1,054,055 Total liabilities and fund equity $983,814 $1,061,774 164 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA INSURANCE FUND Statement 73 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 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 (expenses): Investment income Total nonoperating revenues (expenses) Net income (loss) Retained earnings - January 1, as previously stated Prior period adjustment /restatements Retained earnings - January 1, as restated Retained earnings - December 31 165 1998 1997 $317,053 $313,501 48,024 12,398 365,077 325,899 379,807 212,414 103,299 135,061 209,172 81,206 - 379 692,278 429,060 (327,201) (103,161) 60,116 71,490 60,116 71,490 (267,085) (31,671) 1,054,055 1,085,726 (7,571) - 1,046,484 1,085,726 $779,399 $1,054,055 CITY OF COLUMBIA HEIGHTS, MINNESOTA INSURANCE FUND Statement 74 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1998 With Comparative Totals For the Year Ended December 31, 1997 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: Investment income Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - January 1, as previously stated Prior period adjustment /restatements Cash and cash equivalents - January 1, as restated Cash and cash equivalents - December 31 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in prepayments Increase (decrease) in accounts payable Increase (decrease) in claims payable Total adjustments Net cash flows from operating activities 166 1998 $364,764 (505,153) (140,389) 63,188 (77,201) 998,104 (7,571) 990,533 $913,332 ($327,201) (313) (9,571) (3,304) 200,000 186,812 ($140,389) 1997 $325,828 (466,907) (141,079) 69,783 (71,296) 1,069,400 1,069,400 $998,104 ($103,161) 1 (71) (37, 672) (175) (37,918) ($141,079) CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPENSATED ABSENCES FUND Statement 75 BALANCE SHEET December 31, 1998 With Comparative Totals For December 31, 1997 1998 1997 Assets Current assets: Cash and cash equivalents $530,959 $501,310 Interest receivable 4,383 4,893 Total assets $535,342 $506,203 Liabilities and Fund Equity Long -term liabilities: Compensated absences payable $471,029 $471,224 Total liabilities 471,029 471,224 Retained earnings: Unreserved 64,313 34,979 Total liabilities and fund equity $535,342 $506,203 167 CITY OF COLUMBIA HEIGHTS, MINNESOTA I COMPENSATED ABSENCES FUND Statement 76 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 ' 1998 1997 Operating revenues: Charges for services $ _ $ _ Operating expenses: Cost of services Net income from operations 0 0 Nonoperating revenues (expenses): Investment income 32,659 31,399 Net income 32,659 31,399 Retained earnings - January 1, as previously stated 34,979 3,580 Prior period adjustment /restatements (3,325) - Retained earnings - January 1, as restated 31,654 3,580 Retained earnings - December 31 $64,313 $34,979 1� 168 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPENSATED ABSENCES FUND Statement 77 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1998 With Comparative Totals For The Year Ended December 31, 1997 Cash flows from operating activities: Cash received from customers Cash payments to employees for services Net cash flows from operating activities Cash flows from investing activities: Investment income Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - January 1, as previously stated Prior period adjustment /restatements Cash and cash equivalents - January 1, as restated Cash and cash equivalents - December 31 Reconciliation of operating income (loss) to Net cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Changes in assets and liabilities: (Increase) decrease in accrued salaries and withholdings payable Total adjustments Net cash flows from operating activities •6 1998 (195) (195) 33,169 32,974 501,310 (3,325) 497,985 $530,959 (195) (195) ($195) 1997 8,347 8,347 30,086 38,433 462,877 462,877 $501,310 8,347 8,347 $8,347 This page intentionally left blank. 170 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: Permit Surchar e 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 Fund: Flex Benefit - used to account for contributions by employees and related expenditures for flexible benefits. 171 CITY OF COLUMBIA HEIGHTS, MINNESOTA FIDUCIARY FUNDS Statement 78 COMBINING BALANCE SHEET December 31, 1998 Expendable Trust Flex Agency Assets Benefit Funds Total Cash and investments $22,358 $21,550 $43,908 Receivables: Interest 174 - 174 Total assets $22,532 $21,550 $44,082 Liabilities and Fund Balance Liabilities: Accounts payable $2,152 $15,002 $17,154 Deposits - 3,500 3,500 Other liabilities - 3,048 3,048 Total liabilities 2,152 21,550 23,702 Fund balance: Unreserved: Undesignated 20,380 - 20,380 Total fund balance 20,380 0 20,380 Total liabilities and fund balance $22,532 $21,550 $44,082 r L 172 CITY OF COLUMBIA HEIGHTS, MINNESOTA EXPENDABLE TRUST FUND - FLEX BENEFIT FUND Statement 79 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1998 1998 Revenues: Flex withholding $29,166 Investment income 1,296 Total revenues 30,462 Expenditures: Personal services - Other services and charges 27,448 Total expenditures 27,448 Net increase in fund balance 3,014 Fund balance - January 1, as previously stated 17,491 Prior period adjustment /restatements (125) Fund balance - January 1, as restated 17,366 Fund balance - December 31 $20,380 173 CITY OF COLUMBIA HEIGHTS, MINNESOTA FIDUCIARY FUNDS Statement 80 COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - ALL AGENCY FUNDS For The Year Ended December 31, 1998 Permit Surcharge Agency Fund Assets Cash and investments - general account $242 $650 $ - $892 Liabilities SAC charges /surcharges payable $242 $650 $ - $892 Escrow Agency Assets Balance Balance Cash and investments: 1/1/98 Additions Deletions 12/31/98 Total All Agency Funds ($110,487) $127,478 $ - $16,991 Assets 126,169 - 122,502 3,667 Cash and investments: 256 - 256 - General account ($110,245) $128,128 $ - $17,883 Payroll account 126,169 - 122,502 3,667 Due from other governmental units 1 256 - 256 - Total assets $16,180 $128,128 $122,758 $21,550 Liabilities Accounts payable $7,406 $7,596 $ - $15,002 Deposits 5,212 - 1,712 3,500 Other liabilities 3,562 650 1,164 3,048 Total liabilities $16,180 $8,246 $2,876 $21,550 Permit Surcharge Agency Fund Assets Cash and investments - general account $242 $650 $ - $892 Liabilities SAC charges /surcharges payable $242 $650 $ - $892 Escrow Agency Assets Cash and investments: General account ($110,487) $127,478 $ - $16,991 Payroll account 126,169 - 122,502 3,667 Due from other governmental units 256 - 256 - Total assets $15,938 $127,478 $122,758 $20,658 Liabilities Accounts payable $7,406 $7,596 $ - $15,002 Deposits 5,212 - 1,712 3,500 Other liabilities: Payroll deductions payable 806 - 241 565 Employee activity 2,514 - 923 1,591 Total liabilities $15,938 $7,596 $2,876 $20,658 174 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. 175 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE For The Year Ended December 31, 1998 Statement 81 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., H.U.D., and Police Grants State Total grants Revenue sharing: Federal Anoka County Total revenue sharing Balance from current revenue and contributions Total investments in general fixed assets $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 17,934 - 544,224 267,203 748 - 267,951 793,493 18,682 0 812,175 1,752,317 - - 1,752,317 51,550 - - 51,550 1,803,867 0 0 1,803,867 14, 601, 063 1,303,624 134,942 15,769,745 $19,202,898 $1,322,306 $134,942 $20,390,262 176 Balance Balance 1/1/98 Additions Deletions 12/31/98 General Fixed Assets Land $3,400,281 $ - $7,900 $3,392,381 Buildings 8,205,670 119,275 - 8,324,945 Improvements other than buildings 1,541,123 693,337 - 2,234,460 Machinery and equipment 6,055,824 509,694 127,042 6,438,476 Total city general fixed assets $19,202,898 $1,322,306 $134,942 $20,390,262 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., H.U.D., and Police Grants State Total grants Revenue sharing: Federal Anoka County Total revenue sharing Balance from current revenue and contributions Total investments in general fixed assets $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 17,934 - 544,224 267,203 748 - 267,951 793,493 18,682 0 812,175 1,752,317 - - 1,752,317 51,550 - - 51,550 1,803,867 0 0 1,803,867 14, 601, 063 1,303,624 134,942 15,769,745 $19,202,898 $1,322,306 $134,942 $20,390,262 176 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY For The Year Ended December 31, 1998 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 Total other departments Total general fixed assets Statement 82 Balance Balance 1/1/98 Additions Deletions 12/31/98 $22,780 $506 $580 $22,706 24,212 - 6,492 17,720 270,255 51,505 1,899 319,861 12,294 - - 12,294 18,519 - - 18,519 1,263,834 28,436 - 1,292,270 1,611,894 80,447 8,971 1,683,370 663,200 96,889 755 759,334 893,923 4,595 - 898,518 35,719 - - 35,719 1,592,842 101,484 755 1,693,571 228,832 12,954 11,403 230,383 1,950,128 871,078 35,120 2,786,086 2,178,960 884,032 46,523 3,016,469 652 - - 652 7,758,187 122,213 49,467 7,830,933 402,268 98,319 28,927 471,660 117,341 22,787 - 140,128 5,540,754 13,024 299 5,553,479 13,819,202 256,343 78,693 13,996,852 $19,202,898 $1,322,306 $134,942 $20,390,262 177 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 1998 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 Total other departments Totals Statement 83 r 178 1 Improvements Machinery Other Than and Land Buildings Buildings Equipment Total $ - $ - $ - $22,706 $22,706 - - - 17,720 17,720 - - - 319,861 319,861 - - - 17,840 - - 12,294 679 12,294 18,519 182,194 1,008,471 22,296 79,309 1,292,270 182,194 1,026,311 22,296 452,569 1,683,370 - - 1,710 757,624 759,334 - 27,943 2,199 868,376 898,518 - - - 35,719 35,719 0 27,943 3,909 1,661,719 1,693,571 - 5,110 2,801 222,472 230,383 - 44,655 1,285,565 1,455,866 2,786,086 0 49,765 1,288,366 1,678,338 3,016,469 - - - 652 652 3,072,921 1,973,481 915,955 1,868,576 7,830,933 21,000 300,074 1,134 149,452 471,660 - 5,565 - 134,563 140,128 116,266 4,941,806 2,800 492,607 5,553,479 3,210,187 7,220,926 919,889 2,645,850 13,996,852 $3,392,381 $8,324,945 $2,234,460 $6,438,476 $20,390,262 r 178 1 GENERAL LONG -TERM DEBT ACCOUNT GROUP The General Long -Term Debt Account Group is used to account for the long -term debt of the City other than debt recorded in the Enterprise Funds. 179 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF GENERAL LONG -TERM DEBT Statement 84 December 31, 1998 Amount Available And To Be Provided For The Payment Of General Long -Term Debt Amount available in Debt Service Funds $644,112 Amount to be provided for retirement of: Long -term debt 6,455,965 j Total available and to be provided for $7,100,077 General Long -Term Debt Payable General Obligation Bonds payable $5,324,721 Accreted interest on Capital Appreciation Bonds 1,775,356 Total long debt general -term payable $7,100,077 f 1 1 1 1 1 180 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF DEBT SERVICE REQUIREMENTS TO MATURITY Statement 85 December 31, 1998 181 General Obligation Bonds Year Principal Interest 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 $5,324,721 $4,699,076 181 This page intentionally left blank 182 SUPPLEMENTARY FINANCIAL INFORMATION 1 183 G.O. Tax Increment Refunding Bonds of 1991 All bonds maturing on or after March 1, 2000 shall be subject to 3/01-9/01 redemption and prior payment in whole or in part at the option of CITY OF COLUMBIA HEIGHTS, MINNESOTA the issuer on March 1, 1999 and on any day thereafter at a price of 5.50% COMBINING SCHEDULE OF BONDS PAYABLE 5.60% December 31, 1998 5.80% Interest Issue Maturity Rate Date Date 1� Tax Increment Bonds G.O. Tax Increment Capital Appreciation Bonds of 1990 8/23/90 9/1/09 9/01 6.90% 6.95% 7.00% 7.00% 7.10% 7.10% 7.15% 7.15% G.O. Tax Increment Refunding Bonds of 1991 All bonds maturing on or after March 1, 2000 shall be subject to 3/01-9/01 redemption and prior payment in whole or in part at the option of 5.30% the issuer on March 1, 1999 and on any day thereafter at a price of 5.50% par and accrued interest. 5.60% 5.70% 5.80% Total General Obligation Tax Increment Bonds 12/1/91 3/1/02 1 'i I '1 Exhibit 1 185 Interest Original Balance Balance Paid in Issue 1/1/98 Sold Retired 12/31/98 Current Year $2,399,721 $2,399,721 $ - $ - $2,399,721 $ - 6,670,000 3,915,000 - 990,000 2,925,000 190,750 L $9,069,721 $6,314,721 $0 $990,000 $5,324,721 $190,750 185 This page intentionally left blank. 186 III. STATISTICAL SECTION 187 CITY OF COLUMBIA HEIGHTS, MINNESOTA ASSESSED VALUE, TAX CAPACITY, AND Table 1 ESTIMATED ACTUAL VALUE OF ALL TAXABLE PROPERTY (A) $1,679,868 Years 1989 Through 1998 ($5,180,460) (Unaudited) $130,685,327 $511,612,400 Ratio of 1990 Total 522,002,900 Assessed/ 4,017,800 Tax 2,478,750 Capacity Real Property Personal Property Area Wide Allocation (B) Total Value Assessed/ Estimated Assessed/ Estimated Assessed/ Estimated to Total Fiscal Tax Capacity Actual Tax Capacity Actual Tax Capacity Actual Estimated Year Value Value Value Value Contribution Distribution Value Value Actual Value 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% 1998 8,840,736 586,529,700 193,445 4,891,100 (512,532) 2,540,064 11,061,713 591,420,800 1.87% (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. CITY OF COLUMBIA HEIGHTS, MINNESOTA TAX RATES - PER $100 OF TAX CAPACITY Years 1989 Through 1998 (Unaudited) Table 2 Year (A) City School County Metro Other (B) Total 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 1998 0.30991 0.68491 0.27845 0.05183 0.02287 1.34797 (A) For years 1989 -1997: Rice Creek Watershed, Mosquito Control, and Housing and Redevelopment Authority For the year 1998: Rice Creek Watershed, Mosquito Control, Housing and Redevelopment Authority and County Regional Rail Source: Anoka County: Payable Final Tax Rate Table CITY OF COLUMBIA HEIGHTS, MINNESOTA ' CITY TAX LEVY Table 3 Years 1989 Through 1998 (Unaudited) ' Fiscal City Levy General Police Fire Year Total Fund Relief Relief Library EDA 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 1998 3,201,434 2,659,289 - 443,145 ' - 99,000 1 190 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA TAX LEVIES AND TAX COLLECTIONS Years 1989 Through 1998 (Unaudited) Table 4 I 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 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 1996 2,754,161 2,726,715 99.0% 78,666 2,805,381 1.0186:1 33,408 0.01213:1 I1997 3,038,144 3,001,061 98.8% 23,818 3,024,879 0.9956:1 48,239 0.01588:1 1998 3,201,434 3,163,132 98.8% 26,314 3,189,446 0.9963:1 77,078 0.02408:1 * 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. 1 191 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Years 1989 Through 1998 (Unaudited) Table 5 192 Deferred Special Assessments Current Current Collections Special Collected Balance Fiscal Assessments % of Delinquent Assessments During at End of Year Due Amount Levy Collections A) Delinquent Fiscal Period Fiscal Period 1989 * $218,860 $142,076 64.9% $95,361 $97,030 $219,588 $637,341 1990 * 250,682 180,388 72.0% 74,581 109,928 309,544 591,415 1991 * 252,190 134,588 53.4% 39,016 77,005 210,029 565,432 1992 * 224,922 171,708 76.3% 55,385 73,962 54,141 416,229 1993 * 104,941 71,722 68.3% 59,468 59,185 139,047 364,055 1994 * 125,888 85,292 67.8% 39,267 60,229 102,127 304,970 1995 159,282 86,587 54.4% 53,447 79,057 25,130 186,323 1996 64,767 38,470 59.4% 58,495 34,147 70,506 158,269 1997 76,405 32,286 42.3% 21,532 54,706 259,263 558,078 1998 141,739 96,100 67.8% 36,320 63,342 413,629 626,176 * The parking ramp at 4025 Van Buren Street NE was assessed; however, it was not included in this figure. (A) The City bills the property owner directly when a special assessment installment becomes due. If the installment becomes delinquent, it is certified to the County for inclusion on the following year's property tax statement and is shown as a delinquent collection. 192 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL GOVERNMENTAL REVENUES BY SOURCE (A) Years 1989 Through 1998 (Unaudited) Table 6 Fiscal Special Licenses Inter- Charges for Fines and Year Taxes Assessments and Permits governmental Services Forfeitures Interest Miscellaneous Total (B) 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 1998 4,449,833 - 289,411 5,286,058 1,167,676 121,858 484,776 287,937 12,087,549 Notes: (A) Includes General, Special Revenue, and Debt Service Fund Types. (B) This schedule includes the Housing and Redevelopment Authority as a blended component unit of the City, except for 1991 - 1995 when it was discretely presented as a separate column. 193 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (A) Years 1989 Through 1998 (Unaudited) Table 7 Notes: (A) Includes General, Special Revenue, and Debt Service Fund Types. (B) This schedule includes the Housing and Redevelopment Authority as a blended component unit of the City, except for 1991 - 1995 when it was discretely presented as a separate column. 194 Highways Parks Fiscal General Public and and Debt Year Government Safety Streets Sanitation Recreation Library Service Other Total (B) 1989 $1,114,211 $2,303,702 $785,818 $122,304 $1,400,850 $333,188 $2,399,342 $1,108,743 $9,568,158 1990 1,429,627 2,551,543 762,642 184,627 1,514,853 368,363 2,469,400 1,298,528 10,579,583 1991 1,285,382 2,538,215 891,133 108,108 954,236 390,251 3,950,683 352,510 10,470,518 1992 1,356,795 2,563,788 819,300 176,216 1,044,021 383,933 2,272,802 397,879 9,014,734 1993 1,441,603 2,679,272 806,990 149,054 1,040,459 374,625 2,963,693 499,702 9,955,398 1994 1,352,543 2,576,987 841,861 100,111 1,037,181 395,821 1,688,796 419,918 8,413,218 1995 1,395,395 2,550,980 938,819 73,815 977,813 405,873 1,424,633 833,417 8,600,745 1996 1,354,292 2,597,866 965,677 124,580 1,055,083 409,047 1,475,888 1,608,033 9,590,466 1997 1,397,129 2,542,310 1,075,682 84,251 1,201,796 427,358 1,477,132 1,752,565 9,958,223 1998 1,449,476 2,675,544 917,546 116,816 1,223,121 471,240 1,414,259 2,975,143 11,243,145 Notes: (A) Includes General, Special Revenue, and Debt Service Fund Types. (B) This schedule includes the Housing and Redevelopment Authority as a blended component unit of the City, except for 1991 - 1995 when it was discretely presented as a separate column. 194 CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL CITY OFFICIALS Year Ended December 31, 1998 Name Mayor and Council Official Title Joseph Sturdevant Mayor Gary L. Peterson Councilmember Donald G. Jolly Councilmember Robert W. Ruettimann Councilmember Marlaine Szurek Councilmember Administration Table 8 Walter Fehst City Manager Linda Magee Assistant to City Manager William Elrite City Clerk- Treasurer, Finance Director Roxane Smith Assistant Finance Director Phil Suckerman Liquor Operations Manager Jim Hoeft City Attorney Kevin Hansen Public Works Director, City Engineer Thomas Johnson Chief of Police Charles Kewatt Chief of Fire Lauren McClanahan Superintendent of Public Works Keith Windschitl Recreation Services Director M. Rebecca Loader Librarian 195 CITY OF COLUMBIA HEIGHTS, MINNESOTA MISCELLANEOUS STATISTICS December 31, 1998 (Unaudited) Table 9 Page 1 of 2 Date of Incorporation March 14, 1898 Date of Adoption of City Charter July 21, 1921 Form of Government Council- Manager Fiscal Year Begins January 1 Area of City 3.52 Square Miles Miles of Streets and Alleys: Trunk Highways 3.0 County 6.2 City Streets 61.8 Alleys 18.9 Miles of Sewers: 515 Storm Sewers 33.6 Sanitary Sewers 59.0 Watermain Miles 66.1 Building Permits Issued: 1990 473 1991 486 1992 484 1993 515 1993 505 1994 565 1995 596 1996 602 1997 678 1998 597 Estimated Construction Cost for Issued Permits: 1989 $5,180,247 1990 5,198,200 1991 4,894,021 1992 2,373,433 1993 3,292,353 1994 4,522,438 1995 4,927,970 1996 11,910,040 1997 5,904,308 1998 16,991,747 CITY OF COLUMBIA HEIGHTS, MINNESOTA MISCELLANEOUS STATISTICS December 31, 1998 (Unaudited) Fire Protection: Table 9 Page 2 of 2 Number of Stations 1 Number of Employees: 1 Full -time 8 Part -time 1 Volunteer 22 Police Protection: Number of Stations 1 Number of Employees 34 Parks: City Parks 13 Playgrounds 11 County Park 1 Schools: Senior High 1 Junior High 1 Elementary 3 Parochial Elementary 1 Employees (as of December 31, 1998): 6,053 Regular 116 Part -time and Temporary 210 1970 326 Elections: Registered voters - Last City General Election 11,064 Number of Votes Cast - Last City General Election 8,639 Percentage of Registered Voters Voting 78.08% 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) 18,910 197 CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL TAXPAYERS December 31, 1998 (Unaudited) Taxpayer Type of Business Medtronics, Inc Bradley Operating LP Maylan Construction Consolidated Realty of Minneapolis Americana Bank Columbia Park Properties Northern States Power Crestview Lutheran Home Lynde Investment Minnegasco Total Principal Taxpayers Source of Data: Medical Manufacturing Construction Retail (K -mart) Apartments Office Building Medical Building Utility Apartments Apartments Utility Anoka County Auditor's Office Tax Capacity Value $316,658 186,050 144,386 104,670 134,050 132,382 98,900 50,890 68,904 89,856 $1,326,746 r Table 10 % of , Total City Tax Capacity Value 2.86% 1.68% 1.31% 0.95% 1.21% , 1.20% 0.89% , 0.46% 0.62% 0.81% 11.99% CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN Table 11 December 31, 1998 (Unaudited) 1997/1998 1996/1997 Market Value $590,856,000 $569,594,400 Debt Limit Percentage (Note A) 2% 2% Debt limit 11,817,120 11,391,888 ' Amount of Debt applicable to debt limit: Total bonded debt 5,324,721 6,314,721 Less: Tax increment bonds 5,324,721 6,314,721 (Note B) Special assessment bonds Total amount of debt applicable to debt limit 0 0 Legal debt margin $11,817,120 $11,391,888 ' 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. 199 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING DEBT December 31, 1998 (Unaudited) Direct debt: City of Columbia Heights Overlapping debt: Anoka County Metropolitan Council Metropolitan Transit District ISD 13 (Columbia Heights) Totals Net General Obligation Debt $5,324,721 77,420,000 34,430,000 82,890,000 32,995,000 $233,059,721 200 Percentage Applicable to City 100.0% Table 12 Amount Applicable to City of Columbia Heights Share of Debt $5,324,721 5.50% 4,258,100 0.50% 172,150 0.50% 414,450 64.60% 21,314,770 $31,484,191 tCITY OF COLUMBIA HEIGHTS, MINNESOTA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS Table 13 Years 1989 Through 1998 ' (Unaudited) ' Property Value (A) Construction Fiscal Number Bank Year Real Personal Total of Units Value Deposits (B) 1989 $116,314,660 $1,679,868 $117,994,528 473 $5,180,247 $7,018,831 (C) 1990 14,532,465 208,985 14,741,450 486 5,198,200 10,311,528 1991 10,022,891 212,505 10,235,396 484 4,894,021 9,923,902 1992 9,901,542 210,051 10,111,593 515 2,373,433 10,155,837 1993 9,503,314 207,255 9,710,569 505 3,292,353 16,636,883 (D) 1994 9,226,574 207,309 9,433,883 565 4,522,438 24,438,648 1995 9,021,129 207,658 9,228,787 596 4,927,970 22,725,067 1996 8,884,233 220,961 9,105,194 602 11,910,040 24,451,568 1997 9,185,608 224,356 9,409,964 678 5,904,308 49,257,825 1998 1 8,840,736 193,445 9,034,181 597 16,991,747 59,028,490 * 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) f 1992 amounts were used for First Banks and Norwest because 1993 amounts were not available. ' 201 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 1989 Through 1998 (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 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 1998 18,910 11,061,713 5,324,721 644,112 4,680,609 42.31% 290 202 CITY OF COLUMBIA HEIGHTS, MINNESOTA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES Table 15 FOR GENERAL OBLIGATION BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES Years 1989 Through 1998 (Unaudited) Ratio of Total Debt Service to Total General General Fiscal Debt Governmental Governmental Year Principal Interest Service Expenditures Expenditures 1989 $715,000 $1,674,234 $2,389,234 $9,568,158 25.0% 1990 780,000 1,333,923 2,113,923 10,579,583 20.0% 1991 2,895,000 905,604 3,800,604 10,470,518 36.3% 1992 1,180,000 1,017,432 2,197,432 9,014,734 24.4% 1993 1,875,000 1,035,788 2,910,788 9,955,398 29.2% j1994 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% 1998 990,000 190,390 1,180,390 11,243,145 10.5% 203 This page intentionally left blank. 204 1 t IV. SINGLE AUDIT AND OTHER REQUIRED REPORTS 205 This page intentionally left blank 206 Tautges 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, 1998, and have issued our report thereon dated March 26, 1999. 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. tThe 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. 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. ' March 26 1999 HLB TAUTGES REDPATH, LTD. Certified Public Accountants 4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA Telephone: 651 426 7000 Fax: 651 426 5004 V P HLB Tautges Redpath, Ltd. is a member of ® International. A world -wide organization of accounting firms and business advisers. 207 This page intentionally left blank. . 1.� I11] Tautges Redpath, Ltd. Certified Public Accountants and Consultants Independent Auditor's 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 general purpose financial statements of the City of Columbia Heights, Minnesota as of and for the year ended December 31, 1998, and have issued our report thereon, dated March 26, 1999. 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 the City of Columbia Heights, Minnesota's general purpose 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 general purpose 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 the 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 general purpose financial statements and not to provide assurance on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting 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 financial reporting that, in our judgment, could adversely affect the City of Columbia Heights, Minnesota's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. Reportable conditions are described in the accompanying schedule of findings and questioned costs as item 1998 -2. 4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA TeIe hone: 651 426 7000 Fax: 651 426 5004 Y P HLB Tautges Redpath, Ltd. is a member of ® International. A world -wide organization of accounting firms and business advisers. 209 This page intentionally left blank. 210 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. Our consideration of the internal control over financial reporting 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, of the reportable conditions described above, we consider 1998 -2 to be a material weakness. We also noted other matters involving the internal control over financial reporting, which p g, w we have reported to the management of the City of Columbia Heights, Minnesota, and the Columbia Heights Economic Development Authority, in separate reports dated June 15, 1999. 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. March 26, 1999 11M HLB TAUTGES REDPATH, LTD. Certified Public Accountants 211 This page intentionally left blank. 212 Tautges Redpath, Ltd. Certified Public Accountants and Consultants Independent Auditor's Report on Compliance with Requirements Applicable to each Major Program and Internal Control over Compliance in Accordance with OMB Circular A -133 I To the Honorable Mayor and Members of the City Council Columbia Heights, Minnesota Compliance We have audited the compliance of the City of Columbia Heights, Minnesota with the types of 1 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, 1998. The 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 the City of Columbia Heights, Minnesota's management. Our responsibility is to express an opinion on the 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 the 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 the City of Columbia Heights, Minnesota's compliance with those requirements. In our opinion, the City of Columbia Heights, Minnesota complied, in all material respects, with p p , the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 1998. However, the results of our auditing procedures disclosed instances of noncompliance with those requirements, which are required to be reported in 4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA Telephone: 651 426 7000 Fax: 651 426 5004 HLB Tautges Redpath, Ltd. is a member of ® International. A world -wide organization of accounting firms and business advisers. 213 This page intentionally left blank. 214 accordance with OMB Circular A -133 and which are described in the accompanying schedule of findings and questioned costs as items 1998 -1, 3 and 4. ' Internal Control Over Compliance The management of the 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 the 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 r accompanying schedule and findings and questioned costs as items described in item 1998 -1 through 1998 -3 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, of the reportable conditions described above, we consider item 1998 -2 to be a material weakness. We also noted other 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 Authority, in separate reports dated June 15, 1999. 215 This page intentionally left blank. 216 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. March 26, 1999 HLB TAUTGES REDPATH, LTD. Certified Public Accountants 217 This page intentionally left blank. U-91 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 1998 SECTION I - SUMMARY OF AUDIT RESULTS 1. The auditor's report expresses an unqualified opinion on the financial statements of the City of Columbia Heights, Minnesota. 2. There was one reportable condition disclosed during the audit of the financial statements as reported in the Independent Auditor's Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in accordance with Government Auditing Standards. 3. No instances of noncompliance material to the financial statements of the City of Columbia Heights, Minnesota were disclosed during the audit.. 4. Four reportable conditions relating to the audit of the major federal award programs is reported in the Independent Auditor's Report on Compliance with Requirements Applicable to each Major Program and Internal Control over Compliance in Accordance with OMB Circular A -133. 5. The auditor's report on compliance for the major federal award programs for the City of Columbia Heights, Minnesota expresses an unqualified opinion. 6. Audit findings relative to the major federal award programs for the City of Columbia Heights, Minnesota are reported in Section III 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. 8. The threshold for distinguishing Types A and B programs was $300,000. 9. The City of Columbia Heights, Minnesota was not determined to be a low -risk auditee. 219 This page intentionally left blank. 220 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 1998 SECTION II - FINANCIAL STATEMENT FINDINGS See finding 1998 -2 in Section III. SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 1998 —1: CDBG Program, CFDA No. 14.218, passed through Anoka County Condition: In 1997, 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. Expenditures 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 pay this amount back to the County or submit documentation of other qualifying expenditures. Grantee Response: The City will resubmit to Anoka County payment in the amount of $4,078.88. Anoka County Community Development Staff were consulted regarding the expenditures previously submitted and reimbursed and a fax with supporting documentation was forwarded to the City on May 7, 1999. 221 This page intentionally left blank. 222 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 1998 1998 — 2: Section 8 Rental Voucher and Certificate Programs, CFDA #14.855 and 14.857, direct from HUD Condition: Amounts reported in the City's financial records (trial balance) for the Section 8 program were not reconciled to underlying records in a timely manner. Specifically, City originated HAP payments were not segregated from Portability HAP payments. Further, for the portability program, the City began to reconcile payments and receipts at the individual tenant level, however, these individual reconciliations were not I compared with amounts reported in the City's trial balance. The lack of untimely reconciliations can result in lost revenue and unauthorized or incorrect HAP payments. Questioned Cost: None Recommendation: The grantee should reconcile section 8 activity on a monthly basis. iSpecifically, totals for the individual tenants reconciliations should be reconciled to the City's trial balance. Grantee Response: The City will be hiring the Auditors to prepare the reconciliation of Section 8 activity on a monthly basis (for the first six months of 1999). The Columbia Heights Economic Development Authority has directed staff to initiate the complete transfer of the Section 8 program to the Metropolitan HRA which is in process and expected to be complete prior to 1999 year end. The Auditor has also been hired to complete the reconciliation for 1998. 223 This page intentionally left blank. 224 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 1998 1998 -3: 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. HUD requires submission of the following Forms within 45 days of the grantee's fiscal year end (December 31): HUD - 52663, Requisition for Partial Payment of Annual Contributions (OMB No. 2577 - 0149) — submitted quarterly HUD- 52681, Voucher for Payment of Annual Contributions and Operating Statement (OMB No. 2577 -0149) — submitted annually HUD - 52595, Balance Sheet for Section 8 and Public Housing (OMB No. 2577 -0067) — submitted annually HUD - 52683, Report on Program Utilization (OMB No. 2577 -0169) — submitted annually when occupancy is at 90 percent or above, otherwise quarterly Forms 52663 and 52681 have not been filed as of May, 1999. Form 52595 was filed in March, 1999 and Form 52683 was filed in April, 1999. Questioned Cost: None Recommendation: The grantee should amend its internal procedures to ensure reports are submitted on a timely basis. Grantee Response: Reports were not submitted on a timely basis due to the reconciliations not being completed. The Auditors will be engaged to complete and prepare the reconciliations and reports in late December of'1999 for the 1999 calendar year end. In the event the transfer of the Columbia Heights Economic Development Authority Section 8 program to the Metropolitan HRA occurs prior to year end, the reports will be prepared and filed at the time of transfer as may be required. 225 This page intentionally left blank. 226 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 1998 1998 -4: Section 8 Rental Voucher and Certificate Programs, CFDA #14.855 and 14.857, direct from HUD Condition and Criteria : The Section 8 cluster compliance supplement includes the testing of participants' files for certain items in the suggested audit procedures. Of these items, some of the files tested lacked the following: • documentation of asset verification, • applications, • leases from landlords, and • HUD lease addendums. Questioned Costs: None Recommendation: The grantee should take steps in ensure that participants' files include all required documentation. Grantee Response: The Section 8 staff performs and documents asset verification, collects applications, reviews and insures receipt of leases from landlords, and received all necessary HUD lease addendums. However, staff has not filed in an appropriate manner all of said documentation. Staff has been repeatedly directed to insure that all necessary documentation is appropriately filed in accordance with HUD Section 8 record keeping requirements and local directives the need for appropriate documentation in the files will be further conveyed as part of employee training, counseling and evaluation. 227 This page intentionally left blank. 228 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 1998 SECTION IV - PRIOR YEAR FINDINGS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 1997 — Finding No. 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. Expenditures 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 Current Status: This remains a current finding, see finding 98 -1. 229 This page intentionally left blank. 230 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 1998 1997 - Finding No. 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. Criteria: The Compliance Supplement for the Section 8 Cluster under Section E. Eligibility states "that the Public Housing Authority should 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 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 more than 120 days prior to selection, the information should be reverified prior to briefing and issuing a M Certificate." Questioned Costs: None Current Status: The waiting list was updated in 1998. The list no longer includes individuals who have already been issued a certificate or a voucher. 231 This page intentionally left blank. 232 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 1998 1997- Finding No. 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 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 Current Status: A rent reasonableness survey was conducted in 1998, but not sent in to HUD for approval. Instead, the EDA used published HUD rent ceilings to determine rent limits. 1997 - Finding No. 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 Current Status: The EDA is currently displaying the approved HUD Equal Housing Opportunity logo on all appropriate documents. 233 This page intentionally left blank. 234 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 1998 1997 - Finding No. 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 Current Status: HUD has notified the EDA that excess reserves were reduced by $227,808.00 in 1998. 1997 - Finding No. 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). Questioned Costs: None ■ Current Status: This remains a current finding — see finding 98 -3. 235 This page intentionally left blank. 236 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended December 31, 1998 Federal Funding Source/ Federal Pass Through Agency/ CFDA Federal Program Title Number Expenditures U.S. Department of Justice: Direct: Police Hiring Supplement 16.580 $27,728 FAST COPS Grant 16.710 10,301 Local Law Enforcement Block Grant 16.592 9,998 Federal Emergency Management Agency: Passed - through Anoka County: Emergency Management Assistance Grant 83.503 4,618 Passed - through State of MN: Disaster Assistance 83.516 23,432 U.S. Department of Housing and Urban Development: Passed - through Anoka County: Community Development Block Grant - Entitlement Grant (CDBG) 14.218 14,530 Direct: Operating Subsidy 14.850 52,750 Section 8 Cluster Direct: Section 8 Voucher Program 14.855 96,976 Section 8 Certificate Program 14.857 121,045 Total Federal Expenditures $361,378 * 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 (including its component units) 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 $0 237 This page intentionally left blank. 238