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HomeMy WebLinkAbout2016 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 2012 financial activity is as follows: Revenue ExpendituresInterfundIncrease (Decrease)Fund Balance/Cash FundCAFRand Otherand OtherTransfersin Fund Balance/Net PositionBalance FundNo.pg no.SourcesUses(Net)Net Position12/31/1212/31/12 Special Revenue: Economic Development Authority Admin20499$302,358$257,863($25,997)$18,498$222,624$212,414 Debt Service: Sheffield TIF Redevelopment37711972,7412,806 - 69,93583,07883,073 Tax Increment Bonds3761193,600188,802 - (185,202)726,955276,651 Multi-Use Redevelopment Plan38511931,03912,895 - 18,14463,36877,686 TIF Transition Block38911945,97622,098 - 23,87868,25268,247 TIF 47th and Central Avenue37111999,067273,534 - (174,467)742,010406,713 EDA TIF Revenue 20073731192,100200,014205,0007,086252,444251,944 TIF Huset Park Area Fund372119327,83693,080(205,000)29,756207,641213,827 Capital Project: EDA Housing Maintenance Fund408124 - 18,382 - (18,382)375,091 - Total$884,717$1,069,474($25,997)($210,754)$2,741,463$1,590,555 4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com Equal Opportunity Employer 100-Percent Employee-Owned HLB Tautges Redpath is a member of HLB International, a world-wide network of independent accounting firms and business advisors. 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 2010 through 2012 is as follows: 201020112012 Revenues: Property taxes$324,542$305,381$300,697 Market value homestead credit14,69215,25971 Fee/program revenue - 43,74090 Investment income7002,3001,500 Total revenues339,934366,680302,358 Expenditures: Other: Personal services253,707215,094245,731 Other services and charges16,5713,33311,408 Supplies1,06313,585724 Total expenditures271,341232,012257,863 Revenues over expenditures68,593134,66844,495 Other financing sources (uses): Transfers in: Transfer to fund (315)37,500 - - Transfers out: General Fund (101)(12,666)(13,110)(12,831) Capital Improvement Development Fund (420)(51,000)(90,000)(13,166) Total other financing sources (uses)(26,166)(103,110)(25,997) Net change in fund balance42,42731,55818,498 Fund balance - January 1148,639191,066222,624 Fund balance - December 31$191,066$222,624$241,122 2 Columbia Heights Economic Development Authority Audit Management Letter Housing Maintenance Fund (408) This fund was established in 2008 to account for the quality and quantity of housing in the City. A summary of the financial activity is as follows: 2009201020112012 Revenue and other sources: Investment income$3,500$2,200$ - $ - Charges for services - 75 - - Transfers in: Capital Improvement General Gov't Buildings (411) - 600,000 - - Total revenue and other sources3,500602,27500 Expenditures and other uses: Loans and grants80,000 - - - Professional services15,00015,126 - - Interest on interfund loan - 96,000 - - Capital outlay - 19,440 - 18,382 Transfers out: Capital Improvement Development (420) - 218,238 - - Total expenditures and other uses95,000348,804018,382 Net change in fund balance(91,500)253,4710(18,382) Fund balance - January 1231,502140,002393,473393,473 Fund balance - December 31$140,002$393,473$393,473$375,091 At December 31, 2012, the remaining fund balance consisted of land held for resale. 3 Columbia Heights Economic Development Authority Audit Management Letter Debt Service Funds The EDA maintains the following Debt Service Funds: SheffieldTaxTIFTIF 47th andTIFTIF TIF Redev-IncrementTransitionCentralRevenueHuset Park elopmentBondsMURPBlockAvenueBonds 2007AreaTotal Revenue and other sources: Tax increments$71,841$ - $30,139$45,376$94,367$ - $325,536$567,259 Investment income9003,6009006004,7002,1002,30015,100 Transfer in - - - - - 205,000(205,000) - Total revenue and other sources72,7413,60031,03945,97699,067207,100122,836582,359 Expenditures and other uses: Other services and charges2,0852,9071,6551,7153,438 - 8,63120,431 Capital outlay - 185,895 - - 243,686 - - 429,581 Debt service: Principal - - - - - 53,000 - 53,000 Interest and fiscal721 - - - 26,410147,014 - 174,145 Developer incentives - - 11,24020,383 - - 84,449116,072 Total expenditures and other uses2,806188,80212,89522,098273,534200,01493,080793,229 Net change in fund balance69,935(185,202)18,14423,878(174,467)7,08629,756(210,870) Fund balance - January 113,143912,15745,22444,374916,477245,358177,8852,354,618 Fund balance - December 31$83,078$726,955$63,368$68,252$742,010$252,444$207,641$2,143,748 The 2012 financial activity includes the following: Tax Increment Bonds – capital outlay includes the reduction in value of real estate held for resale. th TIF 47 and Central – capital outlay includes the reduction in the value of real estate held for resale. HLB TAUTGES REDPATH, LTD. June 28, 2013 4