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HomeMy WebLinkAbout2015 EDA AML To the Board of Commissioners Columbia Heights Economic Development Authority Columbia Heights, Minnesota 55421 In conjunction with our audit of the City’s financial statements, we have prepared this report to assist the EDA board in analyzing the financial activity of the EDA. Economic Development Authority The EDA was established in January 1996. The EDA is a separate legal entity from the City, however, because the Mayor and City Council members comprise the majority of the EDA’s governing board, the EDA is reported in the City’s financial statements using the blended method. The EDA financial statements are included as Special Revenue, Debt Service and Capital Project Funds in the City’s CAFR. A summary of the 2015 financial activity is as follows: Revenue ExpendituresInterfundIncrease (Decrease)Fund Balance/Cash FundCAFRand Otherand OtherTransfersin Fund Balance/Net PositionBalance FundNo.pg no.SourcesUses(Net)Net Position12/31/1512/31/15 Special Revenue: Economic Development Authority Admin204113$264,367$190,340($13,756)$60,271$414,031$367,893 Debt Service: Tax Increment Bonds3761292,700160,121 - (157,421)526,154192,883 Multi-Use Redevelopment Plan38512926,03111,679 - 14,35278,28783,384 TIF Transition Block38912943,03439,409 - 3,62557,60076,486 TIF 47th and Central Avenue37112964,38877,330 - (12,942)613,467355,435 EDA TIF Revenue 2007373129210206,356216,0009,854268,288268,158 TIF Huset Park Area Fund372129371,829131,616(216,000)24,213319,281315,490 TIF Scattered Site3911297,451 - - 7,451(67,938)7,113 Capital Project: EDA Housing Maintenance Fund408133 - - (336,365)(336,365)21,113 - Total$780,010$816,851($350,121)($386,962)$2,230,283$1,666,842 5921!Xijuf!Cfbs!Qbslxbz-!Tu/!Qbvm-!NO-!66221!!!!!!762/537/8111!!!!!!xxx/sfeqbuidqbt/dpn Columbia Heights Economic Development Authority Audit Management Letter EDA Administration (204) This fund was established in 1996 to account for the financial activity associated with business development and community redevelopment projects in the City. A summary of the financial activity of this fund for 2013 through 2015 is as follows: 201320142015 Revenues: Property taxes$269,395$266,778$260,067 Fee/program revenue6030 - Investment income(5,098)11,3984,300 Total revenues264,357278,206264,367 Expenditures: Other: Personal services201,805154,803176,373 Other services and charges20,05221,95212,888 Supplies7704,0371,079 Total expenditures222,627180,792190,340 Revenues over expenditures41,73097,41474,027 Other financing sources (uses): Transfers out: General Fund (101)(12,848)(13,658)(13,756) Total other financing sources (uses)(12,848)(13,658)(13,756) Net change in fund balance28,88283,75660,271 Fund balance - January 1241,122270,004353,760 Fund balance - December 31$270,004$353,760$414,031 2 Columbia Heights Economic Development Authority Audit Management Letter Housing Maintenance Fund (408) This fund was established in 2008. Its current function is to account for EDA-owned real estate for resale, other than that purchased with tax increment financing. A summary of the financial activity is as follows: 2012201320142015 Revenue and other sources: Investment income$ - $ - $ - $ - Total revenue and other sources0000 Expenditures and other uses: Capital outlay18,38217,613 - - Transfers out: Library construction (450) - - - 336,365 Total expenditures and other uses18,38217,6130336,365 Net change in fund balance(18,382)(17,613)0(336,365) Fund balance - January 1393,473375,091357,478357,478 Fund balance - December 31$375,091$357,478$357,478$21,113 At December 31, 2015, the remaining fund balance consisted of real estate held for resale. 3 Columbia Heights Economic Development Authority Audit Management Letter Debt Service Funds The EDA maintains the following Debt Service Funds: TaxTIFTIF 47th andTIFTIFTIF IncrementTransitionCentralRevenueHuset ParkScattered BondsMURPBlockAvenueBonds 2007AreaSiteTotal Revenue and other sources: Tax increments$ - $25,031$42,234$63,988$ - $368,029$7,451$506,733 Investment income2,7001,0008004002103,800 - 8,910 Sale of capital assets - - - - - - - - Transfer in - - - - 216,000 - - 216,000 Total revenue and other sources2,70026,03143,03464,388216,210371,8297,451731,643 Expenditures and other uses: Other services and charges5,6041,6151,4363,837 - 15,465 - 27,957 Capital outlay154,517 - - (8,399) - - - 146,118 Debt service: Principal - - - 60,00068,000 - - 128,000 Interest and fiscal - - - 21,892138,356 - - 160,248 Developer incentives - 10,06437,973 - - 116,151 - 164,188 Transfers out - - - - - 216,000 - 216,000 Total expenditures and other uses160,12111,67939,40977,330206,356347,6160842,511 Net change in fund balance(157,421)14,3523,625(12,942)9,85424,2137,451(110,868) Fund balance - January 1683,57563,93553,975626,409258,434295,068(75,389)1,906,007 Fund balance - December 31$526,154$78,287$57,600$613,467$268,288$319,281($67,938)$1,795,139 The 2015 financial activity includes the following: Tax Increment Bonds – The capital outlay was related to a market value adjustment related to the Land Held for Resale. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 13, 2016 4