HomeMy WebLinkAbout2020 ACFR
CITY OF COLUMBIA HEIGHTS
STATE OF MINNESOTA
PREPARED BY:
FINANCE DEPARTMENT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2020
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
TABLE OF CONTENTS
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Reference No.
I. INTRODUCTORY SECTION
Principal City Officials 3
Organizational Chart 4
Letter of Transmittal 5
Certificate of Achievement for Excellence in Financial Reporting9
II. FINANCIAL SECTION
Independent Auditor's Report 13
Management's Discussion and Analysis 17
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position Statement 1 34
Statement of Activities Statement 2 36
Fund Financial Statements:
Balance Sheet - Governmental Funds Statement 3 38
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental Funds Statement 4 40
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities Statement 5 43
Statement of Net Position - Proprietary Funds Statement 6 44
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds Statement 7 46
Statement of Cash Flows - Proprietary Funds Statement 8 48
Notes to Financial Statements 53
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Required Supplementary Information:
Budgetary Comparison Schedule - General Fund Statement 9 96
Schedule of Changes in the Total OPEB Liability and Related Ratios Statement 10 98
Schedule of Employer's Proportionate Share of Plan Net Pension Liability - General Statement 11 99
Employees Retirement Fund
Schedule of Pension Contributions - General Employees Retirement Fund Statement 12 100
Schedule of Employer's Proportionate Share of Plan Net Pension Liability - Public
Employees Police and Fire Fund Statement 13 101
Schedule of Pension Contributions - Public Employees Police and Fire Fund Statement 14 102
Notes to RSI 103
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds Statement 15 113
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental Funds Statement 16 114
Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 17 116
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue Funds Statement 18 118
Special Revenue Funds:
Schedules of Revenues, Expenditures and Changes in
Fund Balance:
Budget and Actual - Cable Television Fund Statement 19 120
Actual - Police Forfeiture Fund Statement 20 121
Budget and Actual - Library Fund Statement 21 122
Budget and Actual - After-School Programs Fund Statement 22 123
Actual - Contributed Projects-Recreation Fund Statement 23 124
Actual - Contributed Projects - Other Fund Statement 24 125
Budget and Actual - Special Projects Fund Statement 25 126
Budget and Actual - Planning and Inspections Fund Statement 26 127
Actual - Anoka County Comm. Dev. Programs Fund Statement 27 128
Budget and Actual - Twenty-first Century Arts Grant Fund Statement 28 129
Budget and Actual - Downtown Parking Fund Statement 29 130
Actual - Public Safety Grant Fund Statement 30 131
Budget and Actual - EDA Administration Fund (Component Unit) Statement 31 132
Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 32 134
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service Funds Statement 33 136
Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 34 140
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project Funds Statement 35 142
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Enterprise Funds:
Water Utility Fund:
Subcombining Schedule of Net Position Statement 36 146
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Position Statement 37 147
Subcombining Schedule of Cash Flows Statement 38 148
Sewer Utility Fund:
Subcombining Schedule of Net Position Statement 39 149
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Position Statement 40 150
Subcombining Schedule of Cash Flows Statement 41 151
Refuse Utility Fund:
Subcombining Schedule of Net Position Statement 42 152
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Position Statement 43 153
Subcombining Schedule of Cash Flows Statement 44 154
Storm Sewer Utility Fund:
Subcombining Schedule of Net Position Statement 45 155
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Position Statement 46 156
Subcombining Schedule of Cash Flows Statement 47 157
Liquor Fund:
Subcombining Schedule of Net Position Statement 48 159
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Position Statement 49 160
Subcombining Schedule of Cash Flows Statement 50 162
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Internal Service Funds:
Combining Statement of Net Position Statement 51 166
Combining Statement of Revenues, Expenses and Changes in Fund
Net Position Statement 52 167
Combining Statement of Cash Flows Statement 53 168
Municipal Service Center:
Subcombining Schedule of Net Position Statement 54 169
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Position Statement 55 170
Subcombining Schedule of Cash Flows Statement 56 171
Information Systems Fund:
Subcombining Schedule of Net Position Statement 57 172
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Position Statement 58 173
Subcombining Schedule of Cash Flows Statement 59 174
Risk Management Fund:
Subcombining Schedule of Net Position Statement 60 175
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Position Statement 61 176
Subcombining Schedule of Cash Flows Statement 62 177
Employee Benefits Fund:
Subcombining Schedule of Net Position Statement 63 178
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Position Statement 64 179
Subcombining Schedule of Cash Flows Statement 65 180
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III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Positions by Component Table 1 184
Changes in Net Position Table 2 186
Fund Balances - Governmental Funds Table 3 190
Changes in Fund Balances - Governmental Funds Table 4 192
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of All Taxable Property Table 5 196
Direct and Overlapping Property Tax Rates Table 6 197
Principal Property Taxpayers Table 7 199
Property Tax Levies and Collections Table 8 200
Debt Capacity:
Ratios of Outstanding Debt by Type Table 9 203
Ratios of Outstanding Net General Bonded Debt by Type Table 10 204
Direct and Overlapping Governmental Activities Debt Table 11 206
Legal Debt Margin Information Table 12 207
Pledged Revenue Coverage Non-Obligation Debt Table 13 208
Demographic and Economic:
Demographic and Economic Statistics Table 14 210
Principal Employers Table 15 211
Operating Information:
City Government Employees by Function/Program Table 16 213
Operating Indicators by Function/Program Table 17 214
Capital Asset Statistics by Function/Program Table 18 216
IV. OTHER REQUIRED REPORTS SECTION
Minnesota Legal Compliance Report 221
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards 223
Independent Auditor's Report on Compliance for Each Major Program and on Internal Control
over Compliance and Report on the Schedule of Expenditures and Federal Awards Required
by the Uniform Guidance 225
Schedule of Expenditures of Federal Awards 229
Schedule of Findings and Questioned Costs 230
Summary Schedule of Prior Year Audit Findings 232
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I. INTRODUCTORY SECTION
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL CITY OFFICIALS
Name Official Title
Mayor and Council:
Donna Schmitt Mayor
John Murzyn, Jr Councilmember
Robert A. Williams Councilmember
Connie Buesgens Councilmember
Nick Novitsky Councilmember
Administration:
Kelli Bourgeois City Manager
Patty Sweep Human Resources Manager
Joseph Kloiber Finance Director
Jim Hoeft City Attorney
Kevin Hansen Public Works Director, City Engineer
Lenny Austin Chief of Police
Charlie Thompson Chief of Fire
Renee Dougherty Library Director
Aaron Chirpich Community Development Director
Keith Windschitl Recreation Services Director
Jason Schulz Liquor Operations Manager
December 31, 2020
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City of Columbia Heights
Organizational Chart
2020
Mayor:
Donna Schmitt
City Manager:
Kelli Bourgeois
Commissions & Boards:
Charter
EDA
HRA
Traffic
Telecommunications
Planning & Zoning
Park & Recreation
LibraryADMINISTRATION
Public ArtsHuman Resources Director: Patty Sweep
City Clerk
Administrative Assistant – Human Resources
Communication Coordinator
Communications & Event SpecialistPOLICE (Administered by Mayor)
Police Chief: Lenny Austin
Office Supervisor
Police Captain (2)
Sergeants (4)
Street Crimes Unit (2)
Patrol Officers (14)
Community Police Officer
Investigations (5)
Community Service Officers (2 FT) (5 PT)
Reserves
Police IS Specialist
Record Techs (4)
FIRE/EMERGENCY MANAGEMENT Fire
Chief: Charlie Thompson
Assistant Fire Chief
Property Maintenance Code Enforcement
Fire Captains (3)
Administrative Assistant II
Clerk Typist II (PT)
Journeymen (3)
On-Call Firefighters (20)
PUBLIC WORKS
Public Works Director/City Engineer: Kevin Hansen
Administrative Assistant II-A
Assistant City Engineer
Refuse Coordinator/PW Specialist
Assessing Clerk (PT)
Engineering Technician IV (2)
Engineering Technician III
Street & Park Superintendent
Utility Superintendent
Urban Forestry Specialist
Foreman (Parks, Sewer & Water, Streets) (3)
Maintenance Worker (18)
Vehicle Maintenance Supervisor
Mechanic
Facility Maintenance Supervisor
Custodian I (3 PT)
Custodian II (PT)
FINANCE
Finance Director/Treasurer:Joseph Kloiber
Accounting Clerk II
Assistant Finance Director
Accounting Coordinator
Payroll Accountant
Budget Coordinator
Accounting Clerk II: Utility
Accounting Clerk I: Utility
Accounting Clerk I
Receptionist/Cashier (PT)
Liquor Operations Manager
Assistant Liquor Store Manager (4)
FT Store Supervisor (2)
PT Store Supervisor (5)
Retail Clerk (30 PT)
IS Director
Assistant IS Director
IS Technician
COMMUNITY DEVELOPMENT
Community Development Director: Aaron Chirpich
City Planner
Building Official
Building Inspections Intern
Community Development Coordinator
Community Development Intern
Administrative Assistant II: Permits & Licenses
Administrative Assistant II: Community Development
LIBRARY
Library Director: Renee Dougherty
Clerk-Typist II (2)
Library Clerk (1)
Library Supervisor (3 PT)
Page (10 PT)
Library Aide (PT)
Adult Services Librarian
Youth Services Librarian
RECREATION
Recreation Director: Keith Windschitl
Clerk/Typist II
Senior Citizen Coordinator
Program Coordinator
Program Coordinator (PT)
Recreation Clerk (PT)
Custodian II (9 PT)
Custodian I (PT)
Council Members:
John Murzyn
Nick Novitsky
Connie Buesgens
Robert Williams
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City of Columbia Heights | Finance Department
590 40th Avenue NE, Columbia Heights, MN 55421 ▪ Ph: 763-706-3600 ▪ www.columbiaheightsmn.gov
June 14, 2021
To the Citizens of the City of Columbia Heights,
Mayor, Council Members, and City Manager
The Annual Comprehensive Financial Report of the City of Columbia Heights for the fiscal year
ended December 31, 2020, is hereby submitted. The City’s management assumes responsibility
for both the completeness and the reliability of the information contained in this report, based
on a comprehensive framework of internal control that it has established for this purpose.
Because the cost of internal control should not exceed its anticipated benefits, the objective is
to provide reasonable, rather than absolute, assurance that the financial statements are free of
any material misstatements.
Redpath and Company, Certified Public Accountants, have issued an unmodified (“clean”)
opinion on the City of Columbia Heights financial statements for the year ended December 31,
2020. Their independent auditors’ report is located at the front of the financial section of this
report.
State law requires Minnesota cities to issue by June 30th of each year a complete set of audited
financial statements for the preceding fiscal year ended December 31st. In addition, state law
requires that Minnesota cities undergo an annual Minnesota Legal Compliance Audit. During
the year ended December 31, 2020, the City expended more than $750,000 in federal grant
awards. The City was therefore required to have an audit in conformity with the provisions of
the Single Audit Act of 1984 and the United States Office of Management and Budget’s Uniform
Guidance for 2020. Information related to the Minnesota Legal Compliance Audit and the
Single Audit, including the Schedule of Expenditures of Federal Awards is included in the Other
Required Reports Section at the back of this report.
Generally accepted accounting principles require that management provide a narrative
introduction, overview, and analysis to accompany the basic financial statements in the form of
Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to
complement the MD&A and should be read in conjunction with it. The City of Columbia
Heights’ MD&A can be found immediately following the report of the independent auditors.
PROFILE OF THE GOVERNMENT
The City of Columbia Heights, 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 Council consists of a Mayor and four Council Members. All are elected at-large, on a
non-partisan basis. The Mayor serves a two-year term and the Council Members serve four-
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City of Columbia Heights
Letter of Transmittal
June 14, 2021
Page 2
year terms. The City Manager is appointed by the City Council. The City covers an area of 3.52
square miles and currently has a population of 19,496. The City is empowered to levy a tax on
both real and personal property within its boundaries.
All City funds, departments, commissions and other organizations for which the City of
Columbia Heights is financially accountable, including all component units, are presented within
the Annual Comprehensive Financial Report. The Columbia Heights Housing and
Redevelopment Authority (HRA) and the Columbia Heights Economic Development Authority
(EDA) are included in the reporting entity as blended 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/burden with the authorities.
The City provides a full range of services to its citizens. These services include, but are not
limited to, police and fire protection; water and sanitation services; the construction and
maintenance of highways, streets, and infrastructure; library; recreational facilities; and general
administrative services.
LOCAL ECONOMY
The City is located within the varied and stable economic base of the Minneapolis-Saint Paul
greater metropolitan area, which is a major center for both the state and the upper-midwest.
The local 2020 unemployment rate of 6.0% was of course an increase over the 2019 rate due to
the economic effects of the COVID-19 pandemic. The largest employers located within the
boundaries of the City in 2020 included Independent School District 13 and one division of
Medtronic Inc., a medical device manufacturer.
With its close proximity to the Minneapolis downtown area (4 miles), and single family housing
that is affordable compared to the metropolitan area average, there has been a relatively stable
demand for housing in the City. However, as an older, fully developed, inner-ring suburb of a
major city, the management and residents of the City of Columbia Heights are faced with the
challenges of an aging infrastructure and dependency on state aid to supplement local
revenues. The City Council and the City’s management are taking a proactive approach to
dealing with these concerns, and they currently have a number of initiatives in progress to
address them. Some of these are described below.
LONG-TERM FINANCIAL PLANNING
The City has a planned Street Rehabilitation Program including, as needed, roadways, alleys,
water mains, sanitary sewer and storm sewer improvements. The program divides the City into
seven street rehabilitation zones and calls for approximately one zone to be rehabilitated every
one to two years. A portion of cost of street rehabilitation is charged to the benefiting
properties in the form of special assessments. Utility system improvements are funded by the
utility rate structure, which is periodically reviewed for long-term sustainability. In some cases,
the City issues bonds to initially finance the project, repaying the bonds with special
assessments and/or utility revenues collected over a number of years.
Historically, local government aid (LGA) from the State of Minnesota has been a key component
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City of Columbia Heights
Letter of Transmittal
June 14, 2021
Page 3
of the City’s annual operating and debt service budgets. The amount provided by the state
however, has been both unpredictable, and for many years now, significantly reduced from
historical levels. To provide for more stable operations, the City has gradually reduced the use
of LGA in its annual operating and debt service budgets, by using moderate incremental
increases in property taxes over the last decade. It now uses approximately 50% of the LGA
received in these annual budgets, compared to 100% used ten years ago.
Currently, approximately $1.8 million in LGA is received annually. The 50% portion of this not
used in the annual operating and debt service budgets is essentially treated as a one-time
revenue source. It is used for capital projects and equipment that would otherwise be
purchased with property taxes.
RELEVANT FINANCIAL POLICIES
By Council resolution, a formal policy has been adopted regarding the minimum unassigned
fund balance for the general fund. The goal of the policy is to begin each year with sufficient
working capital to fund operations. The policy establishes a year-end targeted unassigned fund
balance of 45% of the general fund budgeted expenditures for the subsequent year. At
December 31, 2020, the unassigned fund balance in the general fund was sufficient to meet this
goal.
The City’s policy is to budget and recognize license and permit revenues of the community
development function, such as building permit revenue, in the planning and inspections fund, a
non-major special revenue fund. License and permit revenues of other functions are budgeted
and recognized in the general fund. For this reason, license and permit revenues reported in
the City’s general fund are often lower than other comparable Minnesota cities, which more
commonly budget and recognize all license and permit revenues in the general fund.
CURRENT MAJOR INITIATIVES
The Economic Development Authority (EDA) conducts a program to revitalize the City’s
commercial corridors. The main component of this program is the acquisition and
redevelopment of nonconforming and/or blighted properties within the City’s commercial
corridors. A second component of this program is the award of small matching grants to local
businesses for façade improvements to retail and commercial building exteriors. The third
component of this program is a partnership with the police department and local businesses to
add video surveillance in these commercial corridors, to aid crime reduction. In 2020, the EDA
acquired two single-family homes for demolition and awarded one $5,000 façade improvement
grant.
2020 MAJOR PROJECTS
In the fall of 2020, the EDA demolished the long-vacant six story office building located at 3989
Central Avenue NE. The property was subsequently sold to the EDA’s redevelopment partner
for the site, Alatus LLC. In late 2020, Alatus broke ground on a mixed-use development project
valued at $70 million that includes the following base elements:
266 high amenity market rate apartments
Underground parking
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City of Columbia Heights
Letter of Transmittal
June 14, 2021
Page 4
20,000 square foot City Hall/Office on the ground floor
3,000+ square feet of retail/restaurant space on the ground floor
Pocket park and outdoor dining space
This project serves to accomplish many of the long-range economic development and planning
goals established in the City’s Comprehensive Plan. The Comprehensive Plan guidelines for this
location recommend Transit Oriented Development. Transit Oriented Development seeks to
develop properties to have a mix of residential, retail, and office space. Transit Oriented
Development also seeks to include pedestrian friendly access and design. The project has
already served as a catalyst for additional spin-off development in the immediate area.
AWARD AND AKNOWLEDGEMENTS
The Government Finance Officers' Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City of Columbia Heights, Minnesota for its Annual
Comprehensive Financial Report for the year ended December 31, 2019. The Certificate of
Achievement is a prestigious national award that recognizes conformity with the highest
standards for preparation of state and local government financial reports. In order to be
awarded a Certificate of Achievement, a government unit must publish an easily readable and
efficiently organized Annual Comprehensive Financial Report whose contents conform to
program standards. The ACFR must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current
report continues to conform to the Certificate of Achievement program requirements, and we
are submitting it to the GFOA program for review.
The preparation of the Annual Comprehensive 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,
Joseph P. Kloiber Jaclyn Zillmer
Finance Director Assistant Finance Director
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Columbia Heights
Minnesota
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
December 31, 2019
Executive Director/CEO
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II. FINANCIAL SECTION
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55 5th Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Columbia Heights, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City of Columbia
Heights, Minnesota, as of and for the year ended December 31, 2020, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in the
table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City of Columbia Heights, Minnesota, as of
December 31, 2020, and the respective changes in financial position, and, where applicable, cash flows
thereof for the year then ended in accordance with accounting principles generally accepted in the
United States of America.
Report on Summarized Comparative Information
We have previously audited the City of Columbia Heights, Minnesota’s 2019 financial statements and we
expressed an unmodified audit opinion on the respective financial statements of the governmental
activities, the business-type activities, each major fund and the aggregate remaining fund information in
our report dated June 15, 2020. In our opinion, the summarized comparative information presented
herein as of and for the year ended December 31, 2020 is consistent, in all material respects, with the
audited financial statements from which it has been derived.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, budgetary comparison information, and the schedules of OPEB and pension
information, as listed in the table of contents be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
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Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Columbia Heights, Minnesota’s basic financial statements. The
introductory section, combining and individual fund financial statements and schedules, and statistical
section, are presented for purposes of additional analysis and are not a required part of the basic
financial statements.
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the combining and individual fund financial statements and schedules
are fairly stated in all material respects in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 14, 2021,
on our consideration of the City of Columbia Heights, Minnesota’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is solely to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing, and
not to provide an opinion on the effectiveness of the City of Columbia Heights, Minnesota’s internal
control over financial reporting or on compliance. That report is an integral part of an audit performed
in accordance with Government Auditing Standards in considering the City of Columbia Heights,
Minnesota’s internal control over financial reporting and compliance.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
June 14, 2021
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Columbia Heights, Minnesota (the City), we offer readers of the City
of Columbia Heights’ financial statements this narrative overview and analysis of the financial
activities of the City for the fiscal year ended December 31, 2020. We encourage readers to
consider the information presented here in conjunction with additional information that we have
furnished in our letter of transmittal, which can be found in the introductory section of this report.
Financial Highlights
The assets and deferred outflows of the City exceeded its liabilities and deferred inflows at
December 31, 2020, by $79,687,686 (net position). Of this amount, $31,884,812 or 40% is
unrestricted net position which may be used to meet the City’s ongoing obligations to citizens and
creditors.
During 2020, the City’s total government-wide net position increased by $6,469,570. The City’s
governmental activities provided $5,445,763 of this increase, and the City’s business-type activities
generated the remaining $1,023,807 of this increase.
As of December 31, 2020, the combined fund balances of the City’s governmental funds were
$30,511,601. This is an increase of $408,093 or 1% from the prior year. Also, 24% of the combined
fund balances of the City’s governmental funds were unassigned fund balance, available for
spending at the City Council’s discretion.
As of December 31, 2020, unassigned fund balance in the General fund was $8,067,967 or 96% of
the total fund balance in the General fund. The City’s minimum fund balance policy for the General
fund, detailed in the notes to the financial statements, was met at December 31, 2020.
Total bonded debt decreased in 2020 by $1,476,730; equal to principal payments on existing
bonded debt, to an end-of-year total of $21,511,570.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial
statements. The City’s basic financial statements are comprised of three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also contains other supplementary information in addition to the basic
financial statements themselves.
Government-wide financial statements. The government-wide financial statements are designed
to provide readers with a broad overview of the City’s finances, in a manner similar to a private-
sector business.
The statement of net position presents information on all of the City’s assets and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net
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Management’s Discussion and Analysis
position may serve as a useful indicator of whether or not the financial position of the City is
improving.
The statement of activities presents information showing how the City’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues
and expenses are reported in this statement for some items that will only result in cash flows in
future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the City include general
government, public safety, public works, culture and recreation and community development. The
business-type activities of the City include water, sanitary sewer, refuse, storm sewer and liquor
operations.
The government-wide financial statements are presented as Statements 1 and 2 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City, like other
state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike
the government-wide financial statements, governmental fund financial statements focus on near-
term inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in evaluating a government’s
near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the City’s near term financial
decisions. Both the governmental fund balance sheet and governmental fund statement of
revenues, expenditures, and change in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
Information is presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures, and changes in fund balances for each
major governmental fund. The major governmental funds in 2020 are the following:
18
Management’s Discussion and Analysis
General Fund
EDA (Component Unit) Redevelopment Project Fund
Capital Improvements-PIR Fund
Capital Improvement General Government Buildings Fund
HRA (Component Unit) Parkview Villa North and South Fund
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-major governmental funds is provided in the form of
combining statements elsewhere in this report. The basic governmental fund financial statements
are presented as Statements 3 through 5 of this report.
The City adopts an annual appropriated budget for its general and certain special revenue funds
listed in the notes to the financial statements. A budgetary comparison statement has been
provided for each these funds to demonstrate compliance with this budget.
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are
used to report the same functions presented as business-type activities in the government-wide
financial statements. The City uses enterprise funds to account for its water, sewer, refuse, storm
sewer, and liquor operations. Internal service funds are an accounting device used to accumulate
and allocate costs internally among the City’s various functions. The City uses internal service funds
to account for its municipal service center (for vehicle and facilities maintenance), information
systems, property and liability insurance, and certain employee benefits. As these internal
transactions predominately benefit the governmental rather than the business-type activities, the
internal service funds have been included within governmental activities in the government-wide
financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the water, sewer, refuse, storm sewer and liquor operations, all of which are
considered to be major funds of the City. Conversely, the internal service funds are combined into a
single, aggregated presentation in the proprietary fund financial statements. Individual fund data
for the internal service funds is provided in the form of combining statements elsewhere in this
report. The basic proprietary fund financial statements are presented as Statements 6 through 8 of
this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the City’s own
programs. The accounting used for fiduciary funds is much like that used for proprietary funds. In
2020, the City had no fiduciary fund activity to report.
Notes to the financial statements. The notes provide additional information that is essential to a
full understanding of the data provided in the government-wide and fund financial statements.
19
Management’s Discussion and Analysis
Other information. Required supplementary information for the General fund is presented as
Statement 9 of this report. Required supplementary information on pensions and other post-
employment benefits are presented as Statements 10 through 14 of this report. Certain additional
combining and individual fund statements and schedules are presented as Statements 15 through
65 of this report.
Government-wide Financial Analysis
As noted above, net position may serve over time as a useful indicator of a government’s financial
position. At December 31, 2020, the City’s assets and deferred outflows exceeded its liabilities and
deferred inflows by $79,687,686.
$44,744,407 or 56% of the City’s net position reflects its investment in capital assets (e.g. land,
buildings, equipment and infrastructure) less any related debt used to acquire those assets that is
still outstanding. The City uses these capital assets to provide services to citizens; consequently,
these assets are not available for future spending. It should be noted that, although net position
invested in capital assets is reported net of related debt, the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves would not be used to
liquidate these liabilities.
The restricted portion of the City’s net position represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position,
$31,884,812 or 40%, may be used to meet the City’s ongoing obligations to citizens and creditors.
At December 31, 2020, the City is able to report positive balances in all three categories of net
position, both for the City as a whole, as well as for its separate governmental and business-type
activities.
2020 2019 2020 2019 2020 2019
Assets:
Current and other assets $47,749,220 $44,544,557 $10,259,016 $11,212,807 $58,008,236 $55,757,364
Capital assets 47,235,445 46,074,518 16,740,532 15,374,337 63,975,977 61,448,855
Total assets 94,984,665 90,619,075 26,999,548 26,587,144 121,984,213 117,206,219
Deferred outflows of resources 2,632,181 3,696,813 28,756 22,318 2,660,937 3,719,131
Liabilities:
Current liabilities 3,514,956 3,131,085 1,272,207 1,414,732 4,787,163 4,545,817
Noncurrent liabilities 33,927,452 33,724,157 2,970,901 3,430,682 36,898,353 37,154,839
Total liabilities 37,442,408 36,855,242 4,243,108 4,845,414 41,685,516 41,700,656
Deferred inflows of resources 3,260,609 5,992,580 11,339 13,998 3,271,948 6,006,578
Net position:
Net invested in capital assets 31,424,776 29,402,901 13,319,631 11,498,655 44,744,407 40,901,556
Restricted 2,541,590 2,745,259 516,877 517,261 3,058,467 3,262,520
Unrestricted 22,947,463 19,319,906 8,937,349 9,734,134 31,884,812 29,054,040
Total net position $56,913,829 $51,468,066 $22,773,857 $21,750,050 $79,687,686 $73,218,116
CITY OF COLUMBIA HEIGHTS' NET POSITION
TotalsGovernmental Activities Business-Type Activities
20
Management’s Discussion and Analysis
Changes in net position - governmental activities. In 2020, the net position of the City’s
governmental activities increased by $5,445,763. This increase of 11% differed from the prior year
increase of 4% as explained below.
Governmental activities revenue increased $2,756,212 or 13% over the prior year. Key elements of
this change include:
Planned increases in property taxes of $1,016,000 to support 3% inflation on existing
services and five additional full-time positions. Four of these positions are in the public
safety function, and one position is shared across multiple functions.
Grants and contribution revenue increased by $2,273,000. This included:
o $1,570,000 of federal Coronavirus Relief Funds to aid for expenses incurred due to
the pandemic.
o $750,000 increase in special assessment charges from completed improvement
projects, offset by a reduction of state grants for street reconstruction.
o $80,000 of park dedication fees collected for a mixed-use redevelopment with 260
market-rate apartments.
Charges for services decreased $492,000 across several departments. This reflects 2019
one-time fees of approximately $282,000 for conduit debt issuance and construction
services, and 2020 reductions in a wide variety of activities due to the Coronavirus
pandemic.
Investment income decreased by $360,000; primarily from less favorable interest rates.
Governmental activities expenses increased $1,823,490 or 10% from the prior year. Key elements
of this change include:
Public safety expenses increased $1,332,000 primarily from activities eligible for federal
Coronavirus relief funds.
Public works expenses, and culture and recreation expenses, decreased $157,000 and
$352,000 respectively, as a result of the pandemic limiting normal activities.
Community Development expenses increased $837,000 principally from:
o Payment of $265,000 of unused prior years’ tax increment to the underlying tax
jurisdictions, upon the decertification of a tax increment district in 2020.
o $290,000 more in developer incentives paid in 2020 under existing pay-as-go tax
increment financing agreements.
o 2019 adjustment of land held for resale to the lower of cost or net realizable value,
offset 2019 expenses by $266,000. There was no comparable adjustment required
21
Management’s Discussion and Analysis
to land held for resale in 2020.
Changes in net position - Business-type activities. In 2020, the net position of the City’s business-
type activities increased by $1,023,807. This 5% increase differed from the prior year increase of
7% as explained below:
Business-type activities revenue decreased by $1,313,611 or 7% under the prior year. This
consisted principally of a decrease in municipal liquor sales of $1,330,000 due to reduced
store hours open to the public from both the pandemic and civil unrest. Additionally, within
utility revenues, a 2019 one-time capital grant of $510,000 for storm water improvements,
was approximately offset by increases in all utility rates. These rate increases were required
to maintain existing service levels.
Business-type activities expense decreased by $882,057 or 6% under the prior year. This
reflects decreases in municipal liquor cost of goods sold and operating expenses
($1,161,987), from reduced store hours open to the public. This was somewhat offset by
increases in operating volume for water, sewer, and refuse.
22
Management’s Discussion and Analysis
2020 2019 2020 2019 2020 2019
Revenues:
Program revenues:
Charges for services $1,828,859 $2,321,232 $16,220,692 $16,970,625 $18,049,551 $19,291,857
Operating grants and
contributions 2,864,670 885,209 107,786 106,220 2,972,456 991,429
Capital grants and
contributions 614,692 321,087 - 510,541 614,692 831,628
General revenues:
Property taxes 13,412,668 12,325,204 - - 13,412,668 12,325,204
Tax increment collections 1,116,114 977,598 - - 1,116,114 977,598
Grants and contributions not
restricted to specific programs 1,796,904 1,684,119 - - 1,796,904 1,684,119
Unrestricted investment earnings 469,067 829,368 63,599 118,302 532,666 947,670
Gain on sale of capital assets
used in governmental activities 22,555 25,500 - - 22,555 25,500
Total revenues 22,125,529 19,369,317 16,392,077 17,705,688 38,517,606 37,075,005
Expenses:
General government 2,436,098 2,237,467 - - 2,436,098 2,237,467
Public safety 8,206,813 6,875,101 - - 8,206,813 6,875,101
Public works 3,249,175 3,404,984 - - 3,249,175 3,404,984
Culture and recreation 3,347,512 3,699,635 - - 3,347,512 3,699,635
Community development 1,839,279 1,002,298 - - 1,839,279 1,002,298
Interest on long-term debt 499,896 535,798 - 499,896 535,798
Water - - 2,904,931 2,678,905 2,904,931 2,678,905
Sewer - - 2,144,690 1,994,854 2,144,690 1,994,854
Refuse - - 2,028,140 1,883,849 2,028,140 1,883,849
Storm sewer - - 572,081 812,304 572,081 812,304
Liquor - - 7,329,328 8,491,315 7,329,328 8,491,315
Total expenses 19,578,773 17,755,283 14,979,170 15,861,227 34,557,943 33,616,510
Increase (decrease) in
net position before transfers and special items 2,546,756 1,614,034 1,412,907 1,844,461 3,959,663 3,458,495
Special Item gain (loss) on land sale 2,509,907 - - - 2,509,907 -
Transfers 389,100 422,200 (389,100) (422,200) - -
Increase in net position 5,445,763 2,036,234 1,023,807 1,422,261 6,469,570 3,458,495
Net position - January 1 51,468,066 49,431,832 21,750,050 20,327,789 73,218,116 69,759,621
Net position - December 31 $56,913,829 $51,468,066 $22,773,857 $21,750,050 $79,687,686 $73,218,116
Business-Type Activities Totals
CITY OF COLUMBIA HEIGHTS' CHANGES IN NET POSITION
Governmental Activities
23
Management’s Discussion and Analysis
24
Management’s Discussion and Analysis
25
Management’s Discussion and Analysis
Financial Analysis of the City’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the City’s financing requirements. In particular, unreserved fund balance may serve as a useful
measure of a government’s net resources available for spending at the end of the fiscal year.
At December 31, 2020, the City’s governmental funds reported combined fund balances of
$30,511,601. 88% of this amount or $26,776,757 was not subject to external legal restrictions. This
unrestricted portion of the combined fund balances includes all committed, assigned and
unassigned fund balances. The remaining 12% of the combined fund balances is nonspendable or
restricted; to indicate that it is not available for new spending because it has already been obligated
for prepaid items ($134,459), debt service ($1,472,189), tax increment purposes ($1,496,371), and
various other purpose restrictions ($631,825) detailed in the notes to the financial statements.
The General Fund is the chief operating fund of the City. During the current year, fund balance in
the General Fund increased by $501,459. This differs from the prior year increase of $1,036,082 as
follows:
Revenues increased by $741,000 or 6% over the prior year. This reflects an increase of
$1,119,000 in property taxes consistent with the City’s five-year financial plan, offset by a
reduction in charges for services of $167,000 due to pandemic-related reductions in normal
customer services, and an investment revenue decline of $144,000 due to less favorable
interest rates.
Expenditures increased by $724,000 or 6% over the prior year. This includes:
o Personnel increases, including both a 3% labor contract increase and approximately
four additional FTE over 2019 actual expenses, plus biennial election staffing.
o Purchases in response to the pandemic, including construction to segregate office
space, creation of satellite emergency operation centers, upgrades to the main
emergency operation center, and a radio system for public works use.
o The above expense increases were partially offset by reduced operating expenses
for certain activities reduced by the pandemic, such as recreation programs.
A one-time transfer of $600,000 in 2020 from the General Fund to the Capital
Improvements General Government Buildings Fund, under a plan to accumulate funds for
future building improvement and replacement.
The changes in fund balance of the other major governmental funds in 2020, and significant
elements of those changes, were as follows:
26
Management’s Discussion and Analysis
The Economic Development Authority (Component Unit) Redevelopment Project Fund
increased by $1,705,583. This reflects a one-time sale of redevelopment property in the
City’s downtown area, reported in the fund financial statements as a special item.
The Capital Improvements PIR Fund decreased by $536,437. This decrease is the amount by
which the current year street project expenditures exceeded special assessments collected.
PIR is the acronym for Public Improvement Revolving Fund.
The Capital Improvements General Government Buildings Fund increased by $1,157,477
from the allocation of $700,000 of state aid revenue (LGA) to this fund, and a one-time
transfer of surplus from the general fund of $600,000. Both transactions are part of a plan
to accumulate funds for future building improvement and replacement.
The combined fund balances of the non-major governmental funds decreased by $2,419,989 or 17%
from the prior year. The most significant elements of this decrease were:
$1,587,000 of prior year fund balance was expended for infrastructure and equipment.
$1,163,470 of business relocation expenses were incurred in connection with the
aforementioned one-time sale in 2020 of redevelopment property in the City’s downtown
area. These expenses are reported in the fund financial statements as a special item.
Proprietary funds. The City’s proprietary funds provide the same type of information that is found
in the government-wide financial statements for business-type activities, but in more detail. At
December 31, 2020, net position of the major proprietary funds included the following amounts of
unrestricted net position:
Water Fund $1,490,048
Sewer Fund $1,180,600
Refuse Fund $2,202,276
Storm Sewer Fund $556,180
Liquor Fund $3,288,171
The 2020 changes in net position of the major proprietary funds were as follows:
Water Fund $763,666
Sewer Fund ($2,477)
Refuse Fund $101,626
Storm Sewer Fund ($43,942)
Liquor Fund $157,070
Other factors concerning the finances of the proprietary funds are addressed above in the analysis
of the City’s business-type activities.
27
Management’s Discussion and Analysis
Budgetary Highlights
General Fund. The changes between the original and final 2020 General Fund budget included
several small budget amendments to increase intergovernmental revenue by a total of $38,227.
These revenue changes were paired with related increases to budgeted city clerk and fire
department expenditures for various services and training funded by external entities in mid-year.
In addition, 2020 budgeted transfers-out were increased by $600,000 to transfer General Fund
surplus for use within the City’s long-term capital improvement plan.
Actual general fund revenues in 2020 were more than budgeted by $246,767 or 2%, which
approximates the excess tax increment refunded to the City from tax increment financing districts,
an item which the City does not forecast in its budget estimates.
Charges for service were under budget by $173,000 due to pandemic-related reductions in
programs and customer services. This was substantially offset however by the net variance for all
other 2020 General Fund revenue budget line items.
Actual general fund expenditures in 2020 were less than budgeted by $929,000 or 7%. Major
elements of this variance include:
Approximately $400,000 of personnel and services originally planned for use within normal
General Fund operations were diverted to unexpected use within the non-major funds to
address aspects of the COVID-19 pandemic.
Approximately an additional $400,000 of personnel budget planned for use within normal
General Fund operations was not spent due to several temporarily vacant positions and
replacement staff hired at starting rates lower than the position incumbents.
Capital Asset and Debt Administration
Capital assets. The City’s capital assets for its governmental and business-type activities as of
December 31, 2020, amount to $63,975,977 net of accumulated depreciation. This investment in
capital assets includes land, buildings, equipment, infrastructure, and construction in progress.
28
Management’s Discussion and Analysis
City of Columbia Heights’ Capital Assets
Beginning Ending
Balance Additions Deletions Balance
Governmental activities:
Capital assets - not depreciated:
Land $6,440,531 $ - $ - $6,440,531
Construction in progress 365,383 2,723,528 (182,821) 2,906,090
Total capital assets not being depreciated 6,805,914 2,723,528 (182,821) 9,346,621
Capital assets - being depreciated:
Buildings 32,306,087 - - 32,306,087
Equipment 10,390,084 1,227,680 (84,369) 11,533,395
Infrastructure 35,951,874 - - 35,951,874
Total capital assets being depreciated 78,648,045 1,227,680 (84,369) 79,791,356
Less accumulated depreciation for:
Buildings 11,586,752 920,966 - 12,507,718
Equipment 7,298,164 545,202 (84,367) 7,758,999
Infrastructure 20,494,525 1,141,290 - 21,635,815
Total accumulated depreciation 39,379,441 2,607,458 (84,367) 41,902,532
Capital assets being depreciated - net 39,268,604 (1,379,778) (2) 37,888,824
Governmental activities capital assets - net 46,074,518 1,343,750 (182,823) 47,235,445
Business-type activities:
Capital assets - not depreciated:
Land 2,349,213 - - 2,349,213
Construction in progress 68,629 1,921,305 (19,333) 1,970,601
Total capital assets not being depreciated 2,417,842 1,921,305 (19,333) 4,319,814
Capital assets - being depreciated:
Buildings 5,673,893 - - 5,673,893
Equipment 2,717,400 179,288 (8,539) 2,888,149
Infrastructure 19,308,003 - (1,350,027) 17,957,976
Total capital assets being depreciated 27,699,296 179,288 (1,358,566) 26,520,018
Less accumulated depreciation for:
Buildings 2,315,110 159,283 - 2,474,393
Equipment 2,057,460 107,765 (8,539) 2,156,686
Infrastructure 10,370,231 448,017 (1,350,027) 9,468,221
Total accumulated depreciation 14,742,801 715,065 (1,358,566) 14,099,300
Capital assets being depreciated - net 12,956,495 (535,777) - 12,420,718
Business-type activities capital assets - net 15,374,337 1,385,528 (19,333) 16,740,532
Total capital assets - net 61,448,855 2,729,278 (202,156) 63,975,977
29
Management’s Discussion and Analysis
Significant capital asset activity during 2020 included the following:
At December 31, 2020, the City had $1,119,738 of non-cancellable contractual commitments for
construction in 2021, primarily for street reconstruction and sewer lining projects. Additional
information on the City’s capital assets can be found in Note 5 to the financial statements.
Long-term debt. Total bonded debt decreased in 2020 by $1,476,730 to an end of year total of
$21,511,570. This resulted from regularly scheduled principal repayments.
Bonded debt outstanding at year end included general obligation bonds, which are backed by the
full faith and credit of the City, and revenue bonds, for which only revenues from the related
projects financed are pledged for repayment. Some of the general obligation bonds have specific
revenue sources pledged other than property taxes, but in the event those other sources were
insufficient, the City would be required to fund the shortfall through property taxes.
State statute limits the amount of certain general obligation debt that a Minnesota city may issue to
3% of the estimated market value of property within a city’s taxing jurisdiction. At December 31,
2020, the City’s debt limit under this statute was $48,765,373 and $15,725,670 of the City’s
outstanding debt was of the type to which this limit applies.
At December 31, 2020, the City’s general obligation bonds have an AA rating from Standard and
Poor’s and Aa2 rating from Moody’s. The outstanding revenue bonds of the governmental activities
at December 31, 2020, are repaid only with tax increment and are unrated.
In conjunction with a 2015 sale of real property, the Housing and Redevelopment Authority issued a
30-year no-interest note payable to the U.S. Department of Housing and Redevelopment for
$5,200,000 with all principal due in 2047. This is reported in the financial statements within the
liability - Due to Other Governments.
Other long-term obligations consist of compensated absences, post-employment health insurance,
and net pension benefit. Additional information on the City’s long-term debt is included in Note 7 to
Year
Project Started Cost to Date Status
Street Rehab Zone 4 2017 556,762 in-progress
Street Overlay 2018 736,253 in-progress
Water Main Construction 2019 1,067,240 in-progress
Concrete Alley Construction 2019 521,176 in-progress
City Hall 2019 293,497 in-progress
Boat Landing Reconstruction 2019 563,136 in-progress
Silver Lake Lift Station Reconstruction 2019 364,759 in-progress
Sanitary Sewer Lining 2020 254,388 in-progress
As of December 31, 2020
30
Management’s Discussion and Analysis
the financial statements.
City of Columbia Heights’ Long-Term Debt
Economic Factors and Next Year’s Budget
In 2020, the average annual unemployment rate for Anoka County, which includes the City, was
6.0%. This is an increase from a rate of 3.1% from the prior year. This compares to the average
annual 2020 state and national rates of 6.2% and 8.1% respectively. The 2020 increase in the
Consumer Price Index in the Midwest region compares favorably to national trends. These factors
were considered when preparing the City of Columbia Heights’ 2021 budget.
Requests for Information.
This financial report is designed to provide a general overview of the City of Columbia Heights’
finances for all those with an interest in the government’s finances. Questions concerning any of
the information provided in this report or requests for additional financial information should be
addressed to the City of Columbia Heights, Finance Department, 590 40th Avenue NE, Columbia
Heights, Minnesota 55421-3878.
2020 2019 2020 2019 2020 2019
General obligation bonds:
Repaid only with general taxes $15,385,000 $16,115,000 $ - $ - $15,385,000 $16,115,000
With other pledged revenues 430,000 550,000 3,380,000 3,825,000 3,810,000 4,375,000
Revenue bonds 1,935,000 2,065,000 - - 1,935,000 2,065,000
Unamortized premium 340,669 382,618 40,901 50,682 381,570 433,300
Due to other government 5,200,000 5,200,000 - - 5,200,000 5,200,000
Compensated absences 1,184,462 1,123,708 - - 1,184,462 1,123,708
Net pension liability 9,031,244 7,958,096 - - 9,031,244 7,958,096
Postemployment benefits other
than pensions 1,527,677 1,420,635 - - 1,527,677 1,420,635
$35,034,052 $34,815,057 $3,420,901 $3,875,682 $38,454,953 $38,690,739
Governmental Activities Business-Type Activities Totals
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32
BASIC FINANCIAL STATEMENTS
33
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2020 Page 1 of 2
With Comparative Totals For December 31, 2019
Governmental Business-Type
Activities Activities 2020 2019
Current assets:
Cash and investments $34,055,902 $5,424,777 $39,480,679 $36,519,543
Receivables - current:
Accounts (net of allowance for uncollectibles) 2,200,814 2,198,207 4,399,021 2,112,513
Special assessments 619,101 - 619,101 554,329
Taxes 899,242 - 899,242 425,667
Interest 74,660 10,700 85,360 72,117
Due from other governmental units 151,680 24,370 176,050 1,002,920
Internal balances (202,657) 202,657 - -
Prepayments 221,410 110,767 332,177 319,280
Inventory - at cost 66,054 2,287,538 2,353,592 2,391,533
Real estate held for resale 1,352,923 - 1,352,923 4,261,106
Total current assets 39,439,129 10,259,016 49,698,145 47,659,008
Noncurrent assets:
Receivables - noncurrent:
Special assessments 1,334,783 - 1,334,783 1,115,548
Loans 6,975,308 - 6,975,308 6,982,808
Capital assets (net of accumulated depreciation):
Land 6,440,531 2,349,213 8,789,744 8,789,744
Buildings 19,798,369 3,199,500 22,997,869 24,078,119
Equipment 3,774,396 731,463 4,505,859 3,751,860
Infrastructure 14,316,059 8,489,755 22,805,814 24,395,120
Construction in process 2,906,090 1,970,601 4,876,691 434,012
Total noncurrent assets 55,545,536 16,740,532 72,286,068 69,547,211
Total assets 94,984,665 26,999,548 121,984,213 117,206,219
Deferred outflows of resources:
Related to pensions 2,455,533 - 2,455,533 3,559,714
Related to other postemployment benefits 176,648 28,756 205,404 159,417
Total deferred outflows of resources 2,632,181 28,756 2,660,937 3,719,131
Totals
Primary Government
Assets:
The accompanying notes are an integral part of these financial statements.
34
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2020 Page 2 of 2
With Comparative Totals For December 31, 2019
Governmental Business-Type
Activities Activities 2020 2019
Current liabilities:
Accounts payable $666,893 $419,236 $1,086,129 $1,162,237
Accrued salaries and withholdings payable 169,054 29,416 198,470 525,540
Contracts payable 892,081 117,731 1,009,812 181,427
Due to other governmental units 167,648 223,637 391,285 433,841
Unearned revenue 232,908 - 232,908 51,519
Accrued interest payable 214,413 32,187 246,600 264,019
Deposits 65,359 - 65,359 391,334
Compensated absences payable 106,600 - 106,600 110,900
Bonds payable 1,000,000 450,000 1,450,000 1,425,000
Total current liabilities 3,514,956 1,272,207 4,787,163 4,545,817
Noncurrent liabilities:
Compensated absences payable 1,077,862 - 1,077,862 1,012,808
Other postemployment benefits payable 1,527,677 - 1,527,677 1,420,635
Bonds payable 17,090,669 2,970,901 20,061,570 21,563,300
Due to other governmental units 5,200,000 - 5,200,000 5,200,000
Net pension liability 9,031,244 - 9,031,244 7,958,096
Total noncurrent liabilities 33,927,452 2,970,901 36,898,353 37,154,839
Total liabilities 37,442,408 4,243,108 41,685,516 41,700,656
Deferred inflows of resources:
Related to pensions 3,189,208 - 3,189,208 5,904,848
Related to other postemployment benefits 71,401 11,339 82,740 101,730
Total deferred inflows of resources 3,260,609 11,339 3,271,948 6,006,578
Net investment in capital assets 31,424,776 13,319,631 44,744,407 40,901,556
Restricted for:
Debt service 1,215,855 516,877 1,732,732 1,690,747
Tax increment purposes 693,910 - 693,910 1,382,832
Other purposes 631,825 - 631,825 188,941
Unrestricted 22,947,463 8,937,349 31,884,812 29,054,040
Total net position $56,913,829 $22,773,857 $79,687,686 $73,218,116
Totals
Liabilities:
Net position:
Primary Government
The accompanying notes are an integral part of these financial statements.
35
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2020
With Comparative Totals For the Year Ended December 31, 2019
Program Revenues
Charges For
Expenses Services
Functions/Programs
Primary government:
Governmental activities:
General government $2,436,098 $234,197
Public safety 8,206,813 834,238
Public works 3,249,175 29,133
Culture and recreation 3,347,512 99,542
Community development 1,839,279 631,749
Interest on long-term debt 499,896 -
Total governmental activities 19,578,773 1,828,859
Business-type activities:
Water 2,904,931 3,766,630
Sewer 2,144,690 2,242,078
Refuse 2,028,140 2,103,590
Storm sewer 572,081 523,011
Liquor 7,329,328 7,585,383
14,979,170 16,220,692
Total primary government $34,557,943 $18,049,551
The accompanying notes are an integral part of these financial statements.
36
Statement 2
Operating Capital
Grants and Grants and Business-Type
Contributions Contributions Governmental Activities 2020 2019
$303,740 $39,605 ($1,858,556) $ - ($1,858,556) ($1,987,126)
983,477 297,196 (6,091,902) - (6,091,902) (5,401,273)
1,152,281 139,738 (1,928,023) - (1,928,023) (2,595,134)
129,179 80,330 (3,038,461) - (3,038,461) (3,411,113)
295,993 57,823 (853,714) - (853,714) (297,311)
- - (499,896) - (499,896) (535,798)
2,864,670 614,692 (14,270,552)0 (14,270,552) (14,227,755)
- - - 861,699 $861,699 752,906
- - - 97,388 97,388 239,994
103,695 - - 179,145 179,145 286,850
- - - (49,070) (49,070) 18,816
4,091 - - 260,146 260,146 427,593
107,786 0 0 1,349,308 1,349,308 1,726,159
$2,972,456 $614,692 (14,270,552) 1,349,308 (12,921,244) (12,501,596)
General revenues:
Property taxes 13,412,668 - 13,412,668 12,325,204
Tax increment collections 1,116,114 - 1,116,114 977,598
Grants and contributions not
restricted to specific programs 1,796,904 - 1,796,904 1,684,119
Unrestricted investment earnings 469,067 63,599 532,666 947,670
Gain on sale of capital assets used
in governmental activities 22,555 - 22,555 25,500
Transfers 389,100 (389,100) - -
Special item 2,509,907 - 2,509,907 -
Total general revenues, transfers, and special items 19,716,315 (325,501) 19,390,814 15,960,091
Change in net position 5,445,763 1,023,807 6,469,570 3,458,495
Net position - January 1 51,468,066 21,750,050 73,218,116 69,759,621
Net position - December 31 $56,913,829 $22,773,857 $79,687,686 $73,218,116
Totals
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
Primary Government
The accompanying notes are an integral part of these financial statements.
37
CITY OF COLUMBIA HEIGHTS, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2020
General Fund
EDA (Component Unit)
Redevelopment Project
Fund 408
Capital Improvements
PIR Fund 415
Assets
Cash and investments $8,169,075 $3,322,760 $395,552
Receivables:
Accounts 31,916 2,116,708 -
Special assessments - - 1,673,980
Taxes 818,704 7,476 -
Loans - - -
Interest 31,260 1,700 500
Due from other governmental units 54,466 - 44,573
Interfund receivable - - -
Prepayments 131,857 - -
Real estate held for resale - 872,615 -
Total assets $9,237,278 $6,321,259 $2,114,605
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable $190,677 $5,838 $33,833
Accrued salaries and withholdings payable 140,201 - 934
Contracts payable - retained percentage 2,774 - 91,818
Due to other governmental units 157,507 - -
Interfund payable - - -
Unearned revenue 180,048 - -
Deposits - - 10,000
Total liabilities 671,207 5,838 136,585
Deferred inflows of resources:
Unavailable revenue 188,858 2,115,600 1,644,565
Total deferred inflows of resources 188,858 2,115,600 1,644,565
Fund balance:
Nonspendable 131,857 - -
Restricted - - -
Committed - 4,199,821 333,455
Assigned 177,389 - -
Unassigned 8,067,967 - -
Total fund balances 8,377,213 4,199,821 333,455
Total liabilities, deferred inflows
of resources, and fund balances $9,237,278 $6,321,259 $2,114,605
The accompanying notes are an integral part of these financial statements.
38
Statement 3
Capital Improvements
General Gov't Buildings
Fund 411
HRA (Component Unit)
Parkview Villa North &
South Fund 203 & 213
Other Governmental
Funds Interfund Eliminations
Total
Governmental
Funds
$6,037,283 $ - $12,040,796 $ - $29,965,466
- - 52,190 - 2,200,814
- - 279,904 - 1,953,884
- - 73,062 - 899,242
- 6,585,000 390,308 - 6,975,308
12,000 - 22,600 - 68,060
- - 52,484 - 151,523
- - 134,120 (134,120) -
- - 2,602 - 134,459
- - 480,308 - 1,352,923
$6,049,283 $6,585,000 $13,528,374 ($134,120)$43,701,679
$3,817 $ - $388,548 $ - $622,713
29 - 17,163 - 158,327
- - 689,014 - 783,606
- - 10,141 - 167,648
- - 134,120 (134,120) -
- - 43,423 - 223,471
- - 55,359 - 65,359
3,846 0 1,337,768 (134,120)2,021,124
- 6,585,000 634,931 - 11,168,954
0 6,585,000 634,931 0 11,168,954
- - 2,602 - 134,459
- - 3,600,385 - 3,600,385
6,045,437 - 8,674,528 - 19,253,241
- - - - 177,389
- - (721,840) - 7,346,127
6,045,437 0 11,555,675 0 30,511,601
$6,049,283 $6,585,000 $13,528,374 ($134,120)$43,701,679
Fund balance reported above $30,511,601
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.46,244,542
Other long-term assets are not available to pay for current-period expenditures and,
therefore, are reported as unavailable revenue in the funds.5,968,954
Internal service funds are used by management to charge the costs of municipal service center,
information systems, risk management and employee benefits to individual funds. The assets and liabilities
of the internal service funds are included in the governmental activities in the statement of net position.(7,397,711)
Long-term liabilities, including bonds payable and pollution remediation obligation, are not due
and payable in the current period and, therefore, are not reported in the funds.(18,413,557)
Net position of governmental activities $56,913,829
The accompanying notes are an integral part of these financial statements.
39
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2020
General Fund
EDA (Component Unit)
Redevelopment Project
Fund 408
Capital Improvements
PIR Fund 415
Revenues:
Taxes $11,274,608 $246,245 $ -
Tax increment collections - - -
Special assessments - - 494,062
Licenses and permits 334,596 - -
Intergovernmental 955,096 - -
Charges for services 447,822 - 18,173
Fines and forfeitures 101,309 - -
Investment income:
Interest and dividends 142,941 8,000 6,936
Change in fair value 43,393 2,400 700
Other revenues 19,759 73,039 4,651
Total revenues 13,319,524 329,684 524,522
Expenditures:
Current:
General government 2,340,486 - -
Public safety 6,692,165 - -
Public works 1,606,427 - 266,952
Culture and recreation 1,570,452 - -
Community development - 181,876 -
Capital outlay:
General government - - -
Public safety 76,571 - -
Public works 259,235 - 744,988
Community development - - -
Debt service:
Principal retirement - - -
Interest and fiscal charges - - -
Developer incentives - - -
Total expenditures 12,545,336 181,876 1,011,940
Revenues over (under) expenditures 774,188 147,808 (487,418)
Other financing sources (uses):
Transfers in 497,000 - 1,449
Transfers out (771,759) - (50,468)
Sale of capital assets 2,030 - -
Total other financing sources (uses)(272,729)0 (49,019)
Special item - 1,557,775 -
Net change in fund balance 501,459 1,705,583 (536,437)
Fund balance - January 1 7,875,754 2,494,238 869,892
Fund balance - December 31 $8,377,213 $4,199,821 $333,455
The accompanying notes are an integral part of these financial statements.
40
Statement 4
Capital Improvements
General Gov't Buildings
Fund 411
HRA (Component Unit)
Parkview Villa North &
South Fund 203 & 213
Other Governmental
Funds Interfund Eliminations
Total Governmental
Funds
$ - $ - $1,987,371 $ - $13,508,224
- - 1,116,418 - 1,116,418
- - 105,296 - 599,358
- - 346,230 - 680,826
700,000 - 2,611,708 - 4,266,804
- - 472,189 - 938,184
- - 8,592 - 109,901
55,000 - 119,497 - 332,374
16,700 - 33,700 - 96,893
- - 82,829 - 180,278
771,700 0 6,883,830 0 21,829,260
- - 115,144 - 2,455,630
- - 1,227,370 - 7,919,535
- - 267,727 - 2,141,106
- - 1,076,097 - 2,646,549
- - 894,276 - 1,076,152
237,223 - 39,605 - 276,828
- - 521,494 - 598,065
- - 1,769,638 - 2,773,861
- - 22,200 - 22,200
- - 980,000 - 980,000
- - 555,801 - 555,801
- - 769,402 - 769,402
237,223 0 8,238,754 0 22,215,129
534,477 0 (1,354,924)0 (385,869)
623,000 - 244,433 (976,782)389,100
- - (166,555)976,782 (12,000)
- - 20,525 - 22,555
623,000 0 98,403 0 399,655
- - (1,163,468) - 394,307
1,157,477 0 (2,419,989)0 408,093
4,887,960 - 13,975,664 - 30,103,508
$6,045,437 $0 $11,555,675 $0 $30,511,601
The accompanying notes are an integral part of these financial statements.
41
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42
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 5
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2020
Amounts reported for governmental activities in the statement of activities (Statement 2) are different because:
Net changes in fund balances - total governmental funds (Statement 4)$408,093
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives and reported as
depreciation expense. The differences are the net amount of depreciation and
outlay for capital assets.1,210,741
The issuance of long-term debt provides current financial resources to the governmental funds,
while repayment of the principal of long-term debt consumes the current financial resources of
the governmental funds. Neither transaction has any effect on net position however. This
amount is the net effect of these differences in the treatment of long-term debt.1,021,949
Interest on long-term debt is reported in the governmental funds in the year it is paid.
Whereas, this amount is reported in the statement of activities in the year in which it accrues.13,956
In the governmental funds, revenues are reported in the year available as current resources.
Whereas in the statement of activities, revenues are reported in the year earned.2,281,760
The net revenues (expenses) of certain activities of internal service funds are reported within the
governmental activities in the statement of activities.509,264
Change in net position of governmental activities (Statement 2)$5,445,763
The accompanying notes are an integral part of these financial statements.
43
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2020
Assets: Water Utility Fund Sewer Utility Fund Refuse Utility Fund
Current assets:
Cash and cash equivalents $958,232 $569,911 $1,746,270
Receivables:
Accounts (net of allowance for uncollectibles) 870,757 600,797 584,168
Interest 1,600 1,900 3,100
Due from other governmental units - - 23,982
Prepayments - 103,380 -
Inventory - at cost 8,792 - -
Total current assets 1,839,381 1,275,988 2,357,520
Noncurrent assets:
Capital assets:
Land 45,223 36,586 -
Construction in progress 1,343,167 619,147 -
Buildings 1,305,172 403,659 56,000
Equipment 728,156 1,194,140 112,893
Infrastructure 8,613,661 6,677,171 -
Total capital assets 12,035,379 8,930,703 168,893
Less: accumulated depreciation (5,087,210)(5,437,806)(139,518)
Net capital assets 6,948,169 3,492,897 29,375
Total noncurrent assets 6,948,169 3,492,897 29,375
Total assets 8,787,550 4,768,885 2,386,895
Deferred outflows of resources:
Related to pensions and OPEB - - -
Liabilities:
Current liabilities:
Accounts payable 43,741 1,072 153,444
Accrued salaries and withholdings payable 7,430 3,250 1,800
Contracts payable - retained percentage 69,947 30,396 -
Due to other governmental units 137,198 - -
Accrued interest payable 3,111 2,058 -
Unearned revenue - - -
Compensated absences payable - current - - -
Bonds payable - current 80,000 53,400 -
Total current liabilities 341,427 90,176 155,244
Noncurrent liabilities:
Compensated absences payable - noncurrent - - -
Other postemployment benefits payable - - -
Bonds payable - noncurrent 250,000 178,800 -
Net pension liability - - -
Total noncurrent liabilities 250,000 178,800 0
Total liabilities 591,427 268,976 155,244
Deferred inflows of resources:
Related to pensions and OPEB - - -
Net position:
Net investments in capital assets 6,618,169 3,260,697 29,375
Restricted for debt service 87,906 58,612 -
Unrestricted 1,490,048 1,180,600 2,202,276
Total net position $8,196,123 $4,499,909 $2,231,651
Adjustments to reflect the consolidation of internal service fund activities related to enterprise funds
Net position of business-type activities
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
44
Statement 6
Storm Sewer Utility Fund Liquor Fund Total Enterprise Funds Internal Service Funds
$502,755 $1,647,609 $5,424,777 $4,090,436
142,485 - 2,198,207 -
1,400 2,700 10,700 6,600
- 388 24,370 157
- 7,387 110,767 86,951
- 2,278,746 2,287,538 66,054
646,640 3,936,830 10,056,359 4,250,198
260,690 2,006,714 2,349,213 15,779
- 8,287 1,970,601 -
- 3,909,062 5,673,893 1,978,957
402,607 450,353 2,888,149 605,235
2,667,144 - 17,957,976 -
3,330,441 6,374,416 30,839,832 2,599,971
(1,461,124) (1,973,642) (14,099,300) (1,609,068)
1,869,317 4,400,774 16,740,532 990,903
1,869,317 4,400,774 16,740,532 990,903
2,515,957 8,337,604 26,796,891 5,241,101
- - - 2,660,937
6,774 214,205 419,236 44,180
1,430 15,506 29,416 10,726
17,388 - 117,731 -
- 86,439 223,637 -
2,374 24,644 32,187 -
- - - 9,437
- - - 106,600
56,600 260,000 450,000 -
84,566 600,794 1,272,207 170,943
- - - 1,077,862
- - - 1,527,677
181,200 2,360,901 2,970,901 -
- - - 9,031,244
181,200 2,360,901 2,970,901 11,636,783
265,766 2,961,695 4,243,108 11,807,726
- - - 3,271,948
1,631,517 1,779,873 13,319,631 990,903
62,494 307,865 516,877 -
556,180 3,288,171 8,717,275 (8,168,539)
$2,250,191 $5,375,909 22,553,783 ($7,177,636)
220,074
$22,773,857
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
45
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2020
Water Utility Fund Sewer Utility Fund Refuse Utility Fund
Operating revenues:
Charges for services $237,408 $2,241,481 $2,103,590
Charges for sales, net of discounts 3,528,514 - -
Total operating revenues 3,765,922 2,241,481 2,103,590
Operating expenses:
Cost of sales, services and goods sold 1,616,685 1,206,459 1,766,657
Operating expense 985,677 776,671 260,702
Depreciation 300,170 165,698 2,500
Total operating expenses 2,902,532 2,148,828 2,029,859
Net income (loss) from operations 863,390 92,653 73,731
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 7,300 8,899 14,100
Change in fair value 2,200 2,700 4,300
Intergovernmental - - 103,695
Miscellaneous revenues 708 597 -
Miscellaneous expense - - -
Interest and fiscal charges (7,932)(5,326) -
Total nonoperating revenues (expenses)2,276 6,870 122,095
Net income (loss) before transfers and capital contributions 865,666 99,523 195,826
Transfers and capital contributions:
Transfers in - - -
Transfers out (102,000)(102,000)(94,200)
Total transfers and capital contributions (102,000)(102,000)(94,200)
Change in net position 763,666 (2,477)101,626
Net position - January 1 7,432,457 4,502,386 2,130,025
Net position - December 31 $8,196,123 $4,499,909 $2,231,651
Reconciliation to Statement of Activities:
Amount reported above
Amounts reported for business-type activities in the statement of activities are different because:
Adjustment to reflect consolidation of internal service fund activities
Amounts reported on the statement of activities
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
46
Statement 7
Storm Sewer Utility Fund Liquor Fund Total Enterprise Funds Internal Service Funds
$522,652 $ - $5,105,131 $4,047,877
- 7,585,383 11,113,897 105,270
522,652 7,585,383 16,219,028 4,153,147
- 5,649,325 10,239,126 3,636,872
456,459 1,520,529 4,000,038 -
112,437 134,261 715,066 78,698
568,896 7,304,115 14,954,230 3,715,570
(46,244) 281,268 1,264,798 437,577
6,100 12,400 48,799 30,500
1,900 3,700 14,800 9,300
- 4,091 107,786 67,754
359 - 1,664 -
- (2,500) (2,500)
(6,057) (50,989) (70,304) -
2,302 (33,298) 100,245 107,554
(43,942) 247,970 1,365,043 545,131
- - - 12,000
- (90,900) (389,100) -
0 (90,900) (389,100) 12,000
(43,942) 157,070 975,943 557,131
2,294,133 5,218,839 21,577,840 (7,734,767)
$2,250,191 $5,375,909 $22,553,783 ($7,177,636)
Change in
Net Position Transfers
$975,943 ($389,100)
47,864 -
$1,023,807 ($389,100)
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
47
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2020
Water Utility Fund Sewer Utility Fund Refuse Utility Fund
Cash flows provided by (used in) operating activities:
Cash received from customers $3,690,082 $2,197,185 $2,094,419
Cash received from interfund goods and services provided - - -
Cash paid to suppliers for goods and services (2,083,818)(1,669,259)(1,875,505)
Cash payments to employees for services (425,818)(340,082)(139,657)
Net cash flows provided by (used in) operating activities 1,180,446 187,844 79,257
Cash flows provided by (used in) noncapital financing activities:
Transfers in
Transfers out (102,000)(102,000)(94,200)
Intergovernmental - - 103,695
Interfund payable (repaid to) advanced by other funds - - -
Increases in other postemployment benefits payable - - -
Net cash flows provided by (used in) noncapital financing activities (102,000)(102,000)9,495
Cash flows provided by (used in) capital and related financing activities:
Acquisition of capital assets (1,360,043)(699,459) -
Principal payments - bonds (80,000)(53,400) -
Interest and fiscal charges (8,497)(5,799) -
Net cash flows provided by (used in) capital and related financing activities (1,448,540)(758,658)0
Cash flows provided by (used in) investing activities:
Investment income:
Interest and dividends 7,000 8,799 13,700
Change in fair value 2,200 2,700 4,300
Net cash flows provided by (used in) investing activities 9,200 11,499 18,000
Net increase (decrease) in cash and cash equivalents (360,894)(661,315)106,752
Total cash and cash equivalents - January 1 1,319,126 1,231,226 1,639,518
Total cash and cash equivalents - December 31 $958,232 $569,911 $1,746,270
Noncash capital and related financing activities $ - $ - $ -
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
48
Statement 8
Page 1 of 2
Storm Sewer Utility Fund Liquor Fund Total Enterprise Funds Internal Service Funds
$540,690 $7,580,850 $16,103,226 $ -
- - - 4,929,122
(335,947)(6,202,662)(12,167,191)(3,236,064)
(149,979)(1,099,873)(2,155,409)(1,720,008)
54,764 278,315 1,780,626 (26,950)
12,000
- (90,900)(389,100) -
- 4,091 107,786 67,754
- - - -
- - - 42,065
0 (86,809)(281,314)121,819
(3,849)(17,909)(2,081,260)(28,886)
(56,600)(255,000)(445,000) -
(6,361)(62,892)(83,549) -
(66,810)(335,801)(2,609,809)(28,886)
5,600 12,000 47,099 29,400
1,900 3,700 14,800 9,300
7,500 15,700 61,899 38,700
(4,546)(128,595)(1,048,598)104,683
507,301 1,776,204 6,473,375 3,985,753
$502,755 $1,647,609 $5,424,777 $4,090,436
$ - $ - $ - $ -
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
49
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2020
Water Utility Fund Sewer Utility Fund Refuse Utility Fund
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss)$863,390 $92,653 $73,731
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 300,170 165,698 2,500
Miscellaneous revenues (expenses)708 597 -
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (76,268)(42,051)(9,094)
(Increase) decrease in due from other governmental units - - (77)
(Increase) decrease in prepayments - (2,842) -
(Increase) decrease in inventory, at cost 428 - -
(Increase) decrease in deferred pension outflows - - -
Increase (decrease) in accounts payable 20,125 (36,585)14,671
Increase (decrease) in accrued
salaries and withholdings payable (7,573)(9,890)(2,474)
Increase (decrease) in contracts payable - retained percentage 69,947 20,264 -
Increase (decrease) in due to other governmental units 9,719 - -
Increase (decrease) in deposits payable (200) - -
Increase (decrease) in deferred revenue - - -
Increase (decrease) in compensated absences - - -
Increase (decrease) in net pension liability - - -
Increase (decrease) in deferred pension inflows - - -
Total adjustments 317,056 95,191 5,526
Net cash flows from operating activities $1,180,446 $187,844 $79,257
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
50
Statement 8
Page 2 of 2
Storm Sewer Utility Fund Liquor Fund Total Enterprise Funds Internal Service Funds
($46,244)$281,268 $1,264,798 $437,577
112,437 134,261 715,066 78,698
359 (2,500)(836) -
(16,066)109 (143,370) -
33,745 2,745 36,413 229
- (7,387)(10,229)(8,341)
- 62,418 62,846 (7,866)
- - - 1,087,142
(25,151)(141,537)(168,477)(11,600)
(2,653)(34,920)(57,510)(21,326)
(1,663) - 88,548 -
- (16,142)(6,423) -
- - (200) -
- - - 275
- - - 60,754
- - - 1,073,148
- - - (2,715,640)
101,008 (2,953)515,828 (464,527)
$54,764 $278,315 $1,780,626 ($26,950)
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
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52
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Columbia Heights, Minnesota (the City) was incorporated in 1898. A Council composed of an elected
mayor and four council members governs the City. The Council exercises legislative authority and determines all
matters of policy. The Manager, appointed by the Council, is responsible for the proper administration of all affairs
relating to the City.
The financial statements of the City have been prepared in conformity with generally accepted accounting
principles as applied to governmental units by the Governmental Accounting Standards Board (GASB). 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 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. It is this criterion that results in the HRA and EDA
being reported as a blended component unit.
The financial position and results of operations of the HRA and the EDA component units are presented
using the blended method. These blended component units, although legally separate entities, are, in
substance, part of the City’s operations. The component units consist of Nonmajor Governmental Funds
using the modified accrual basis of accounting, and as such are included in the other governmental funds.
Separate financial statements for the HRA and EDA are not prepared.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the statement of net position and the statement of
changes in net position) report information on all of the nonfiduciary activities of the primary government
and its component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent on fees
and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use or directly benefit from goods, services or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not included among program
revenues are reported instead as general revenues.
53
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they are levied.
Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers all revenues, except reimbursement grants, to be available if they are collected within 60 days
of the end of the current fiscal period. Reimbursement grants are considered available if they are
collected within one year of the end of the current fiscal period. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as
expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Only the portion of special assessments receivable
due within the current fiscal period is considered to be susceptible to accrual as revenue of the current
period. All other revenue items are considered to be measurable and available only when cash is received
by the City.
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
54
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
The Capital Improvement – general government building fund was established for improvements to
city buildings.
The EDA (component unit) Redevelopment Project fund was established to fund land acquisitions and
other activities of redevelopment.
The Capital Improvement – PIR Fund was established to account for projects that will be assessed to
the affected properties.
The HRA (component unit) Parkview Villa North & South fund was established to account for the
revenue and expenditures of the senior housing complex.
The City reports the following major proprietary funds:
The water fund accounts for revenue and expenses associated with water services to area residents.
The sewer fund accounts for revenues and expenses associated with sewer disposal within the City.
The refuse fund accounts for revenues and expenses associated with organized collection of refuse
and recycling within the City.
The storm sewer fund accounts for revenues and expenses associated with storm water disposal.
The liquor fund accounts for revenues and expenses associated with the operation of three off-sale
liquor stores.
Additionally, the City reports the following fund types:
Internal service funds account for municipal service center, information systems, risk management
and certain employee benefit services provided to other departments of the City on a cost
reimbursement basis.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are transactions that would be treated as revenues,
expenditures or expenses if they involved external organizations, such as buying goods and services or
payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination of
these charges would distort the direct costs and program revenues reported for the various functions
concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather
than as program revenues. Likewise, general revenues include all taxes.
55
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of
the water, sewer, refuse, storm sewer and liquor enterprise funds and of the internal service funds are
charges to customers for sales and services. Liquor fund sales are reported net of discounts. No other
fund provides discounts. For 2020, liquor sales discounts were $212,454. Operating expenses for
enterprise funds and internal service funds include the cost of sales and services, administrative expenses,
and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
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 Fund and the following special
revenue funds:
Nonmajor special revenue funds:
Cable Television Fund
Library Fund
After-School Programs Fund
Twenty-First Century Arts Fund
Planning and Inspections Fund
Downtown Parking Fund
Economic Development Authority (component unit):
Economic Development Authority administration fund
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.
56
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
E. CASH AND INVESTMENTS
Cash balances from all funds of the City are pooled and invested to the extent available in authorized
investments. Investments are stated at fair value, except for investments in any external investment
pools that meet GASB 79 requirements, which are stated at amortized cost. 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.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund shown as interfund receivables in the advancing fund, and an interfund
payable in the fund with the deficit, until adequate resources are received. The interfund balances are
eliminated on the government-wide financial statements.
Investments are stated at fair value within the fair value hierarchy established by generally accepted
accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the
assets. The hierarchy has three levels. Level 1 investments are valued using inputs that are based on
quoted prices in active markets for identical assets. Level 2 investments are valued using inputs that are
based on quoted prices for similar assets or inputs that are observable, either directly or indirectly. Level
3 investments are valued using inputs that are unobservable. A detail of the fair value hierarchy of
investments held by the City are disclosed in Note 2.
F. RECEIVABLES AND PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. Interfund loans are classified as “interfund receivables/payables.” Any
residual balances outstanding between the governmental activities and business-type activities are
reported in the government-wide financial statements as “internal balances.”
Because property taxes, special assessments and utility bills form liens on property, no estimated
uncollectible amounts are established. Uncollectible amounts are not material for other receivables, and
have not been reported.
G. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment
date) of each year for collection in the following year. The County is responsible for billing and collecting
all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes
become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes
are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property
taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the
County and remitted to the City on or before July 7 and December 2 of the same year. Delinquent
collections for November and December are received the following January. The City has no ability to
enforce payment of property taxes by property owners. The County possesses this authority.
57
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible
property taxes are not material and have not been reported.
GOVERNMENTAL FUND FINANCIAL STATEMENTS
The City recognizes property tax revenue when it becomes both measurable and available to finance
expenditures of the current period. In practice, current and delinquent taxes received by the City are
recognized as revenue for the current year. Delinquent taxes that are collected by the County by
December 31 (remitted to the City the following January) are also recognized as revenue for the current
year. All remaining delinquent taxes receivable in governmental funds are offset by deferred inflow of
resources.
H. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of special
assessment improvement projects in accordance with state statutes. These assessments are collectible by
the City over a term of years usually consistent with the term of the related bond issue. Property owners
are allowed to (and often do) prepay future installments without interest or prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that
property until full payment is made or the amount is determined to be excessive by the City Council or
court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit
sale. Proceeds of sales from tax forfeit properties are allocated first to the County’s costs of administering
all tax forfeit properties. Pursuant to state statutes, a property shall be subject to a tax forfeit sale after
three years unless it is homesteaded, agricultural or seasonal recreational land, in which event the
property is subject to such sale after five years.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City recognizes special assessment revenue in the period that the assessment roll was adopted by the
City Council. Uncollectible special assessments are not material and have not been reported.
GOVERNMENTAL FUND FINANCIAL STATEMENTS
Revenue from special assessments is recognized by the City when it becomes measurable and available to
finance expenditures of the current fiscal period. In practice, current and delinquent special assessments
received by the City are recognized as revenue for the current year. Special assessments that are
collected by the County by December 31 (remitted to the City the following January) are also recognized
as revenue for the current year. All remaining delinquent and deferred special assessments receivable in
governmental funds are offset by deferred inflow of resources.
58
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
I. INVENTORIES
GOVERNMENTAL FUNDS
The original cost of materials and supplies has been recorded as expenditures at the time of purchase.
These funds do not maintain material amounts of inventories. Real estate held for resale is valued at the
lower of cost or estimated net realizable value. Sales of real estate held for resale are recognized as
charges for services in the government-wide statements and sale of capital assets in the fund financials.
PROPRIETARY FUNDS
Inventories of the Proprietary Funds are stated at cost, which approximates market, using the first-in,
first-out (FIFO) method.
J. PREPAID ITEMS
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements. Prepaid items are reported using
the consumption method and recorded as expenditures/expenses at the time of consumption.
K. CAPITAL ASSETS
Capital assets, which include land, buildings, equipment, and infrastructure assets (e.g., roads, sidewalks,
water systems, sewer systems and similar items), are reported in the applicable governmental or
business-type activities columns in the government-wide financial statements. The City defines capital
assets as assets with an estimated useful life in excess of one year and an initial individual cost of more
than the following:
Capitalization Threshold
Land $1
Buildings 25,000
Equipment 5,000
Infrastructure 250,000
Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.
Infrastructure assets acquired prior to June 30, 1980 are not recorded. Donated capital assets are
recorded at estimated acquisition value at the date of donation. The costs of normal maintenance and
repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type activities is included as part of
the capitalized value of the assets constructed.
59
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Property, plant and equipment of the primary government, as well as the component units, are
depreciated using the straight line method over the following estimated useful lives:
Capital Assets
Buildings (and building components) 10 - 50 years
Equipment 3 - 15 years
Infrastructure 20 - 60 years
L. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits
to certain limits. All vacation pay and the vested portion of sick pay is accrued when incurred in the
government-wide and proprietary fund financial statements. A liability for these amounts is reported in
governmental funds only if they have matured, for example, as a result of employee resignations and
retirements. In accordance with the provisions of Statement of Government Accounting Standards No.
16, Accounting for Compensated Absences, no liability is recorded for nonvesting accumulating rights to
receive sick pay benefits.
Typically, resources from the employee benefits fund are used to liquidate the liability for compensated
absences.
M. LONG-TERM OBLIGATIONS
In the government-wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities or proprietary fund type statement of net position. Bond premiums are
deferred and amortized over the life of the bonds.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during
the current period. The face amount of debt issued is reported as other financing sources. Premiums
received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses.
N. FUND BALANCE CLASSIFICATIONS
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable – consists of amounts that are not in spendable forms, such as prepaid items and assets for
resale unless proceeds from the sale are committed or restricted.
Restricted – consists of amounts related to externally imposed constraints established by creditors,
grantors or contributors; or constraints imposed by state statutory provisions.
60
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Committed – consist of internally imposed constraints. These constraints are established by Resolution of
the City Council. Once adopted, the limitation imposed requires a similar action be taken to remove or
revise the limitation.
Assigned – consists of internally imposed constraints. These constraints reflect the specific purpose for
which it is the City’s intended use. These constraints are established by the City Council and/or
management. Pursuant to City Council resolution 2010-138, the City Manager is authorized to establish
assignment of fund balance.
Unassigned – is the residual classification for the general fund and also reflects negative residual amounts
in other funds.
When both restricted and unrestricted resources are available for use, it is the City’s policy to first use
restricted resources, and then use unrestricted as they are needed. When committed, assigned or
unassigned resources are available for use, it is the City’s policy to use resources in the following order; 1)
committed, 2) assigned and 3) unassigned.
O. INTERFUND TRANSACTIONS
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it
that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing
fund and as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are
reported as an interfund receivable or payable which offsets the movement of cash between funds. All
other interfund transactions are reported as transfers.
P. 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.
Q. COMPARATIVE DATA/RECLASSIFICATIONS
Certain comparative total data for the prior year has been presented in the government-wide financial
statements in order to provide an understanding of the changes in the City’s financial position and
operations. Certain amounts presented in the prior year data have been reclassified in order to be
consistent with the current year’s presentation.
R. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
Deferred outflows of resources: In addition to assets, the statement of financial position will sometimes
report a separate section for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a consumption of net position that applies to a future period(s)
and so will not be recognized as an outflow of resources (expense/expenditure) until then.
61
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Deferred Inflows of resources: In addition to liabilities, the statement of financial position will sometimes
report a separate section for deferred inflows of resources. This separate financial statement element,
deferred inflows of resources, represents an acquisition of net position that applies to a future period(s)
and so will not be recognized as an inflow or resources (revenue) until that time. Accordingly, the item,
unavailable revenue, is reported only in the governmental fund balance sheet. The governmental funds
report unavailable revenue from the following sources: property taxes, special assessments, due from
other governmental units, and loans receivable.
Pensions: For the purposes of measuring the net pension liability, deferred outflows/inflows of resources,
and pension expense, information about the fiduciary net position of the Public Employees Retirement
Association (PERA) and additions to/deletions from PERA’s fiduciary net position have been determined
on the same basis as they are reported by PERA except that PERA’s fiscal year end is June 30. For this
purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and
refunds are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
The City has an additional item which qualifies for reporting in this category. The item, deferred pension
resources, is reported only in the statements of net positions and results from actuarial calculations.
S. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
1. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET AND THE
GOVERNMENT-WIDE STATEMENT OF NET POSITION
The governmental fund balance sheet includes a reconciliation between fund balance – total
governmental funds and net position – governmental activities as reported in the government-wide
statement of net position. One element of that reconciliation states, “long-term liabilities, including
bonds payable, are not due and payable in the current period and therefore are not reported in the
funds.” The details of this ($18,413,557) difference are as follows:
Pollution Remediation Obligation ($108,475)
Accrued interest payable (214,413)
Bonds payable (18,090,669)
Adjustment to fund balance - total governmental
funds - to arrive at net position of governmental activities ($18,413,557)
2. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE AND THE GOVERNMENT-WIDE STATEMENT
OF ACTIVITIES
The governmental fund statement of revenues, expenditures and changes in fund balance includes a
reconciliation between net changes in fund balance – total governmental funds and changes in net
position of governmental activities as reported in the government-wide statement of activities. One
element of that reconciliation states, “Governmental funds report capital outlays as expenditures.
62
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
However, in the statement of activities the cost of those assets is allocated over their estimated useful
lives and reported as depreciation expense. The differences are the net amount of depreciation and
outlay for capital assets." The details of this $1,210,741 difference are as follows:
Total capital outlay in government fund financial
statements $3,739,501
Depreciation expense (2,528,760)
Adjustment to net changes in fund balances -
total governmental funds - to arrive at
changes in net position of governmental activities. $1,210,741
Another element of that reconciliation states, “The issuance of long-term debt provides current financial
resources to the governmental funds, while repayment of the principal of long-term debt consumes the
current financial resources of governmental funds. Neither transaction has any effect on net position
however. This amount is the net effect of these differences in the treatment of long-term debt.” The
details of this $1,021,949 difference are as follows:
Debt issued:
Principal repayments:
General obligation bonds $850,000
Revenue bonds 130,000
Amortization of deferred premiums 41,949
Adjustment to net changes in fund balances -
total governmental funds - to arrive at
changes in net position of governmental activities. $1,021,949
63
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Another element of that reconciliation states, "In the governmental funds, revenues are reported in the
year available as current resources. Whereas in the statement of activities, revenues are reported in the
year earned." The details of this $2,281,760 difference are as follows:
Unavailable revenue - General property taxes:
At December 31, 2019 ($294,263)
At December 31, 2020 198,707
Unavailable revenue - Tax increment taxes:
At December 31, 2019 (14,481)
At December 31, 2020 14,177
Unavailable revenue - Special assessments:
At December 31, 2019 (1,662,449)
At December 31, 2020 1,924,469
Unavailable revenue - Loan receivable:
At December 31, 2019 (6,916,000)
At December 31, 2020 9,031,600
Adjustment to net changes in fund balances -
total governmental funds - to arrive at
changes in net position of governmental activities. $2,281,760
T. 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.
64
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 2 DEPOSITS AND INVESTMENTS
The City maintains a cash and investment pool that is available for use by all funds of the City. The City's total cash
and investment balances as of December 31, 2020 are as follows:
Carrying
Amount At
Fair Value
Investments $37,176,257
Deposits 2,296,649
Cash on hand 7,773
$39,480,679
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized
by the City Council, all of which are members of the Federal Reserve System.
Custodial Credit Risk – Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits
may not be returned to it. Minnesota Statutes require that all City 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. The City has no additional deposit policies addressing custodial credit risk.
At December 31, 2020, the bank balances of the City’s deposits were insured by the FDIC or covered by
pledged collateral held in the City’s name.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City
Clerk/Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral
includes the following:
(1) United States government treasury bills, treasury notes and treasury bonds;
(2) Issues of United States government agencies and instrumentalities as quoted by a recognized
industry quotation service available to the government entity;
(3) General obligation securities of any state or local government with taxing powers which is rated “A”
or better by a national bond rating service, or revenue obligation securities of any state or local
government with taxing powers which is rated “AA” or better by a national bond rating service;
(4) Unrated general obligation securities of a local government with taxing powers may be pledged as
collateral against funds deposited by that same local government entity;
(5) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality
accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s
Investors Service, Inc., or Standard & Poor’s Corporation; and
(6) Time deposits that are fully insured by the Federal Deposit Insurance Corporation.
65
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Deposits as of December 31, 2020 are as follows:
Carrying
Bank Amount At
Balances Fair Value
Demand deposits $2,163,778 $1,533,490
Time deposits 763,002 763,159
Total $2,926,780 $2,296,649
B. INVESTMENTS
Minnesota Statutes Section 118A authorizes the City to invest in the following:
a) 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.
b) Shares of investment companies described in Section 118A.05. This includes primarily money market
funds rated in the top two rating categories by a national rating service, and companies whose only
investments are described in items a) through h) of this note.
c) Obligations of the State of Minnesota or any of its municipalities as follows:
(1) any security which is a general obligation of any state or local government with taxing powers
which is rated “A” or better by a national bond rating service;
(2) any security which is a revenue obligation of any state or local government with taxing powers
which is rated “AA” or better by a national bond rating service; and
(3) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of the
State of Minnesota and is rated “A” or better by a national bond rating agency.
(4) any security which is an obligation of a school district with an original maturity not exceeding 13
months and rated in the highest category by a national bond rating service, or enrolled in the
credit enhancement program pursuant to Section 126C.55.
d) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest
quality, and maturing in 270 days or less.
e) General obligation temporary bonds of the same governmental entity issued under section 429.091,
subdivision 7, 469.178, subdivision 5 or 475.61, subdivision 6.
f) Funds held in a debt service fund may be used to purchase any obligation, whether general or special,
of an issue which is payable from the fund, at such price, which may include a premium, as shall be
agreed to by the holder, or may be used to redeem any obligation of such an issue prior to maturity
in accordance with its terms.
66
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Investments as of December 31, 2020 are as follows:
The City has the following recurring fair value measurements as of December 31, 2020:
Money market mutal funds are investments not categorized.
All others are values using Level 2 inputs, significant other observable inputs.
C. INVESTMENT RISKS
The City's investment policy follows Minnesota State Statutes described above, to limit the City's
exposure to credit, custodial credit and interest rate risks. Additional risk information for the City:
a) Interest rate risk - Interest rate risk is the risk that changes in interest rates of debt investments could
adversely affect the fair value of an investment. To address this risk, the City's policy is to hold
investments to maturity whenever practical to do so.
b) Credit risk - investments - Credit risk is the risk that an issuer or other counterparty to an investment
will be unable to fulfill its obligation to the holder of the investment. In order to limit credit risk to an
acceptable level, the City's investments are limited to securities with the credit quality described
above in Part B of this note.
c) Concentration of credit risk - Concentration of credit risk is the risk of loss that may be attributed to
the magnitude of a government's investment in a single issuer. The City places no limit on the
Weighted
Average Carrying
Maturities Amount At Percentage
In Years Fair Value of Total
Notes issued by U.S. government agencies:
Federal Home Loan Mortgage Corporation 2.5 5,987,922 16%
Other U.S. government agencies* 3.2 4,315,769 12%
State and local government bonds:
New Jersey Economic Dev Authority 2.1 2,580,471 7%
Other state and local government bonds* 1.9 5,653,467 15%
Negotiable certificates of deposit* 1.1 7,454,959 20%
Money market mutual funds:
Federated Investors I Prime Value Fund Less than 1 yr 9,642,531 27%
Evergreen U.S. Government Fund Less than 1 yr 1,035,110 3%
Other Issuers Less than 1 yr 506,028 1%
Total investments 37,176,257$ 100%
* from various issuers, each less than 3% of the fair value of total investments
67
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
amount the City may invest in any one issuer. The table above details the percentage of the City's
investments with each issuer at December 31, 2020.
d) Custodial credit risk – Custodial credit risk is the risk that in the event of a failure of the counterparty,
the City will not be able to recover the value of its investment securities that are in the possession of
an outside party. At December 31, 2020, the securities listed above are held by two separate
custodians in the City's name, with $500,000 of SIPC insurance coverage specific to the City's
investments held at each custodian. Each custodian has provided additional protection by providing
additional insurance. This additional insurance is subject to aggregate limits applied to all of the
custodian's accounts however. Investments in money markets are not evidenced by securities that
exist in physical or book entry form, and therefore are not subject to custodial credit risk disclosures.
Note 3 RECEIVABLES
Significant receivables balances not expected to be collected within one year of December 31, 2020 are as follows:
Total
EDA 2008A Taxable Anoka County EDA Capital
Redev Proj Fund GO Housing Imp Comm Dev Administration Improvement
(Component Unit) Area Bonds Fund Program Fund (Component Unit) Development
Special assessments receivable $ - $ - $192,241 $ - $ - $ - $1,334,783
Loan receivable 6,585,000 - - 231,000 100,000 59,308 6,975,308
Long-term receivable - 2,115,600 - - - - 2,115,600
Total $6,585,000 $2,115,600 $192,241 $231,000 $100,000 $59,308 $10,425,691
Major Funds Nonmajor Funds
HRA (component
unit) Parkview Villa
North & South
On September 24, 2015, the Housing and Redevelopment Authority (HRA) sold a 150 unit senior apartment facility
(Parkview Villa North and South) to Aeon, a regional non-profit housing entity. The terms of the sale included a 30
year $6,585,000 long-term note receivable from Aeon due December 31, 2047. Once the note is collected, the
HRA will remit $5,200,000 to U.S. Department of Housing and Urban Development (HUD), for the dissolution of the
Parkview Villa North portion of the facility as a Public Housing Agency project.
In 2020, a developer purchased certain land within the City’s downtown business district from the EDA. Part of the
purchase agreement included a contractual obligation to develop and construct the City Hall Component of
Minimum Improvements and convey to the City upon completion. December 31, 2020, the estimated fair value
assigned to the right to receive the future condominium shell is $2,115,600.
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 4 UNAVAILABLE REVENUES
Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the
various components of unavailable revenue reported in the governmental funds were as follows:
Property Tax Special Loan Long Term
Taxes Increment Assessments Receivable Receivable Total
Major Funds:
General Fund $188,858 $ - $ - $ - $ - $1 88,858
EDA (Component Unit) Redevlopment Proj - - - - 2,115,600 2,115,600
Capital Improvements - PIR Funds - - 1,644,565 - - 1,644,565
HRA Parkview Villa North & South - - - 6,585,000 - 6,585,000
Nonmajor Governmental Funds: 9,850 14,177 279,904 331,000 - 634,931
Total unavailable revenue $198,708 $14,177 $1,924,469 $6,916,000 2,115,600 $11,168,954
69
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2020 is as follows:
Beginning Ending
Balance Additions Deletions Balance
Governmental activities:
Capital assets - not depreciated:
Land $6,440,531 $ - $ - $6,440,531
Construction in progress 365,383 2,723,528 (182,821) 2,906,090
Total capital assets not being depreciated 6,805,914 2,723,528 (182,821) 9,346,621
Capital assets - being depreciated:
Buildings 32,306,087 - - 32,306,087
Equipment 10,390,084 1,227,680 (84,369) 11,533,395
Infrastructure 35,951,874 - - 35,951,874
Total capital assets being depreciated 78,648,045 1,227,680 (84,369) 79,791,356
Less accumulated depreciation for:
Buildings 11,586,752 920,966 - 12,507,718
Equipment 7,298,164 545,202 (84,367) 7,758,999
Infrastructure 20,494,525 1,141,290 - 21,635,815
Total accumulated depreciation 39,379,441 2,607,458 (84,367) 41,902,532
Capital assets being depreciated - net 39,268,604 (1,379,778) (2) 37,888,824
Governmental activities capital assets - net 46,074,518 1,343,750 (182,823) 47,235,445
Business-type activities:
Capital assets - not depreciated:
Land 2,349,213 - - 2,349,213
Construction in progress 68,629 1,921,305 (19,333) 1,970,601
Total capital assets not being depreciated 2,417,842 1,921,305 (19,333) 4,319,814
Capital assets - being depreciated:
Buildings 5,673,893 - - 5,673,893
Equipment 2,717,400 179,288 (8,539) 2,888,149
Infrastructure 19,308,003 - (1,350,027) 17,957,976
Total capital assets being depreciated 27,699,296 179,288 (1,358,566) 26,520,018
Less accumulated depreciation for:
Buildings 2,315,110 159,283 - 2,474,393
Equipment 2,057,460 107,765 (8,539) 2,156,686
Infrastructure 10,370,231 448,017 (1,350,027) 9,468,221
Total accumulated depreciation 14,742,801 715,065 (1,358,566) 14,099,300
Capital assets being depreciated - net 12,956,495 (535,777) - 12,420,718
Business-type activities capital assets - net 15,374,337 1,385,528 (19,333) 16,740,532
Total capital assets - net 61,448,855 2,729,278 (202,156) 63,975,977
70
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Depreciation expense was charged to functions/programs of the primary government – governmental activities as
follows:
Governmental activities:
General government $35,890
Public safety 579,763
Public works 1,174,946
Culture and recreation 733,156
Community development 5,005
Depreciation on capital assets held by governmental internal service activities
is charged to each function based on use:
Municipal Service Center 68,322
Information Systems 10,376
Total depreciation expense - capital assets held by governmental activities $2,607,458
Depreciation expense was charged to functions/programs of the primary government - business-type activities as
follows:
Business-type activities:
Water $300,170
Sewer 165,698
Refuse 2,500
Storm sewer 112,437
Liquor 134,261
Total depreciation expense - capital assets held by business-type activities $715,066
71
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 6 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
INTERFUND RECEIVABLES, PAYABLES
Individual fund interfund receivable and payable balances at December 31, 2020 are as follows:
Fund Receivable Payable
Nonmajor funds $134,120 $134,120
Total $134,120 $134,120
All interfund balances at December 31, 2020, reflect lending arrangements to cover deficit cash balances at
yearend. Substantially all such other amounts are expected to be repaid within one year.
INTERFUND TRANSFERS
Interfund transfers during the year ended December 31, 2020 are as follows:
Capital Capital Other Internal
Imp PIR Imprvmts Gen Govtl Service
General Fund Govt Bldg Funds Funds Total
Transfers out:
Major funds:
Governmental:
General $ - $1,449 $623,000 $135,310 $12,000 $771,759
Capital Imprvmts PIR - - - 50,468 - 50,468
Enterprise:
Water 102,000 - - - - 102,000
Sewer 102,000 - - - - 102,000
Refuse 94,200 - - - - 94,200
Liquor 90,900 - - - - 90,900
Nonmajor funds:
Other governmental funds 107,900 - - 58,655 - 166,555
Total $497,000 $1,449 $623,000 $244,433 $12,000 $1,377,882
Transfers In
Major Funds Nonmajor Funds
Governmental
72
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
2020 interfund transfers were primarily for the following purposes:
a) To fund capital projects and equipment replacement
b) To fund debt service funds with pledged resources from the funds authorized to collect those resources
c) To fund general government functions of the General Fund which are broadly applicable to all activities of
the primary government.
Note 7 LONG-TERM DEBT
GENERAL OBLIGATION BONDS
The City issues General Obligation Bonds to provide funds for the acquisition and construction of major capital
improvements. General Obligation Bonds are direct obligations and are backed by the full faith and credit of the
City. Any deficiencies in pledged revenues will be offset by general property taxes. All of the bonds are serial
bonds, which require semiannual payments of principal and/or interest from the date the bonds are issued. 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. General obligation bonds outstanding at December 31, 2020, are as
follows:
Pledged revenue,
if any, in addition to Original Interest Issue Final Balance
general property taxes Issue Rate Date Maturity End of Year
Governmental activities:
GO Library series 2015A None 6,875,000 2.50-3.25% 3/4/2015 2/1/2036 $5,795,000
GO Refunding series 2017B - Advanced Refunding None 8,505,000 2.65-3.25% 7/6/2017 2/1/2038 7,655,000
GO Refunding series 2018A - Refunding None 2,070,000 2.45-3.45% 12/27/2018 2/1/2038 1,935,000
Taxable GO housing imprvmt area series 2008A Special assessments 975,000 5.00-6.05% 7/16/2008 2/1/2024 345,000
GO Improvement series 2013A Special assessments 235,000 0.40-2.50%11/21/2013 2/1/2024 85,000
Business-type activities:
GO Utility revenue series 2013A Utility revenues 1,685,000 0.40-2.50% 11/21/2013 2/1/2024 800,000
GO Refunding series 2017A - Refunding Liquor revenues 3,265,000 2.00-3.00% 7/6/2017 2/1/2029 2,580,000
Total general obligation bonds outstanding $19,195,000
73
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
As of December 31, 2020, the annual debt service requirements to maturity for general obligation bonds are as
follows:
Fiscal Year
Ending Governmental Activities Business-Type Activities
December
31 Principal Interest Principal Interest
2021 $870,000 $450,345 $450,000 $72,918
2022 890,000 421,654 460,000 63,618
2023 920,000 392,056 475,000 53,709
2024 950,000 361,376 485,000 43,238
2025 760,000 335,332 285,000 33,600
2026 785,000 314,863 295,000 24,900
2027 815,000 294,107 300,000 17,325
2028 830,000 271,678 315,000 10,710
2029 860,000 247,754 315,000 3,623
2030 890,000 222,974 - -
2031-2035 4,875,000 713,609 - -
2036-2038 2,370,000 97,222 - -
Total $15,815,000 $4,122,970 $3,380,000 $323,639
REVENUE BONDS
The City issues revenue bonds for which the City pledges only the income derived from the acquired or
constructed assets or redevelopment to pay the debt service. All of the bonds are serial bonds, which require
semiannual payments of principal and/or interest from the date the bonds are issued. There are a number of
limitations and restrictions contained in the bond indentures. The City is in compliance with all significant
limitations and restrictions. Revenue bonds outstanding at December 31, 2020 are as follows:
Original Interest Issue Final Balance
Pledged revenue Issue Rate Date Maturity End of Year
Governmental activities:
Tax increment revenue series 2016 - Refunding Tax increment $2,435,000 2.28-3.009% 6/30/2016 2/15/2032 $1,935,000
Total revenue bonds outstanding $1,935,000
74
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
As of December 31, 2020, the annual debt service requirements to maturity for revenue bonds are as follows:
Fiscal Year
Ending Governmental Activities
December
31 Principal Interest
2021 $130,000 $59,747
2022 135,000 57,295
2023 135,000 54,156
2024 140,000 50,200
2025 145,000 45,925
2026 145,000 40,850
2027 155,000 34,850
2028 160,000 28,550
2029 165,000 22,050
2030 170,000 16,200
2031 175,000 11,025
2032 280,000 4,200
Total $1,935,000 $425,048
PLEDGED REVENUES
Refer to the schedules above for the terms of bonds with pledged revenues. Additional information on pledged
revenues by type, as of December 31, 2020, and for the year then ended, is as follows:
Total Remaining Current Year
Related Bond As Percentage Related Bond
Pledged Activity Principal of Revenue Principal Pledged
Revenue Financed and Interest Pledged and Interest Revenue
Project-specific Street
special assessments improvements $88,835 95% $26,660 $50,498
Project-specific Private
special assessments redevelopment 388,086 95% 98,432 107,796
Project-specific Public/Private
tax increment redevelopment 2,360,049 83% 189,748 791,317
Water, sewer and
storm- Utility system
sewer net revenues improvements 838,481 16% 206,242 1,257,561
75
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2020 is as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
General obligation bonds repaid only with general taxes $16,115,000 $ - ($730,000) $15,385,000 $770,000
General obligation bonds with other pledged revenues 550,000 - (120,000) 430,000 100,000
Revenue bonds 2,065,000 - (130,000) 1,935,000 130,000
Unamortized premium/discount 382,618 - (41,949) 340,669 -
Total bonds payable 19,112,618 - (1,021,949) 18,090,669 1,000,000
Due to Other Government 5,200,000 - - 5,200,000 -
Compensated absences 1,123,708 950,254 (889,500) 1,184,462 106,600
Net pension liability 7,958,096 1,073,148 9,031,244 -
Postemployment benefits other than pensions 1,420,635 159,028 (51,986) 1,527,677 -
Total governmental activity long-term liabilities $34,815,057 $2,182,430 ($1,963,435) $35,034,052 $1,106,600
Business-type activities:
Bonds payable:
General obligation bonds with other pledged revenues $3,825,000 $ - ($445,000) $3,380,000 $450,000
Unamortized premium/discount 50,682 - (9,781) 40,901 -
Total bonds payable 3,875,682 - (454,781) 3,420,901 450,000
Total business-type activity long-term liabilities $3,875,682 $0 ($454,781) $3,420,901 $450,000
Compensated absences, net pension liability and other postemployment benefits are liquidated by the employee
benefits fund, an internal service fund.
See note 3 for detail of Due to Other Government.
Note 8 CONDUIT DEBT
From time to time, the City 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. The City,
the EDA, and the HRA, are not 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, 2020 there was an estimated aggregate principal amount payable of approximately
$63,492,230 in bonds of this type.
76
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 9 FUND EQUITY
A. CLASSIFICATIONS
At December 31, 2020, the City has various fund equities through legal restrictions and City Council
authorizations. A summary of such classifications are as follows:
EDA (component Cap Imp HRA (component
General unit) Redev Gen Govt unit) Parkview Nonmajor
Fund Project PIR Building Villa No & So Gov't Total
2020 Fund Balance
Nonspendable
Prepaid items $131,857 $ - $ - $ - $ - $2,602 $134,459
Total nonspendable 131,857 - - - - 2,602 134,459
Restricted for:
Debt service - - - - - 1,472,189 1,472,189
Streets - - - - - 506,793 506,793
Tax Increment - - - - - 1,496,371 1,496,371
Police Forfeiture - - - - - 20,948 20,948
Grant sponsored Rec Programs - - - - - 104,084 104,084
Total restricted - - - - - 3,600,385 3,600,385
Committed for:
Downtown Parking Maintenance - - - - - 16,767 16,767
Capital Improvements/Replacement - - 333,455 6,045,437 - 4,047,722 10,426,614
Cable TV Operations - - - - - 1,101,638 1,101,638
Library Operations - - - - - 717,522 717,522
Economic Redevelopment - 4,199,821 - - - 2,790,879 6,990,700
Total committed - 4,199,821 333,455 6,045,437 - 8,674,528 19,253,241
Assigned for:
2021 Appropriation 177,389 - - - - - 177,389
Unassigned:8,067,967 - - - - (721,840) 7,346,127
Total 8,377,213$ 4,199,821$ 333,455$ 6,045,437$ -$ 11,555,675$ 30,511,601$
77
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
B. DEFICIT FUND BALANCE
The following funds had fund deficits as of December 31, 2020. The City will finance these deficits
through collections of revenues in future years.
Nonmajor Funds:
Major Funds:
Anoka County Comm. Dev. Programs ($616,546)
Debt Service Funds:
TIF Central Valu Center (2,638)
TIF Scattered Site (102,656)
($721,840)
C. MINIMUM FUND BALANCE POLICY
The City Council has formally adopted a fund balance policy for the General Fund and the Library Fund (a
non-major fund). The most significant revenue sources for these funds are property taxes. This revenue
source is received in two installments during the year – June and December. As such, it is the City’s goal
to begin each fiscal year with sufficient working capital to fund operations between each semi-annual
receipt of property taxes. The policy establishes a year-end target of unassigned fund balance for the
General Fund and spendable fund balance for the Library fund equal to at least 45% of the next year’s
budgeted expenditures. At December 31, 2020, both funds have met this goal.
Note 10 DEFINED BENEFIT PENSION PLANS - STATEWIDE
A. PLAN DESCRIPTION
The City participates in the following cost-sharing multiple-employer defined benefit pension plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined
benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters
353 and 356. PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the
Internal Revenue Code.
General Employees Retirement Fund (GERF)
All full-time (with the exception of employees covered by PEPFF) and certain part-time employees of the
City are covered by the General Employees Retirement Fund (GERF). GERF members belong to the
Coordinated Plan. Coordinated Plan members are covered by Social Security.
Public Employees Police and Fire Fund (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local relief
association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the
PEPFF also covers police officers and firefighters belonging to local relief associations that elected to
merge with and transfer assets and administration to PERA.
78
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
B. BENEFITS PROVIDED
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statute and can only be modified by the state legislature. Vested, terminated employees who are entitled
to benefits but are not receiving them yet are bound by the provisions in effect at the time they last
terminated their public service.
1. GERF Benefits
Benefits Benefits are based on a member’s highest average salary for any five successive years of
allowable service, age, and years of credit at termination of service. Two methods are used to
compute benefits for PERA’s Coordinated members. Members hired prior to July 1, 1989 receive
the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after
June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2% of average
salary for each of the first ten years of service and 1.7% of average salary for each additional
year. Under Method 2, the accrual rate for Coordinated Plan members is 1.7% of average salary
for all years of service. For members hired prior to July 1, 1989 a full annuity is available when
age plus years of service equal 90 and normal retirement age is 65. For members hired on or
after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped
at 66.
Benefit increases are provided to benefit recipients each January. Beginning in 2019, the
postretirement increase is equal to 50% of the cost-of-living adjustment (COLA) announced by
the SSA, with a minimum increase of at least 1% and a maximum of 1.5%. Recipients that have
been receiving the annuity or benefit for at least a full year as of the June 30 before the effective
date of the increase will receive the full increase. For recipients receiving the annuity or benefit
for at least one month but less than a full year as of the June 30 before the effective date of the
increase will receive a reduced prorated increase. For members retiring on January 1, 2024 or
later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1,
1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90
are exempt from the delay to normal retirement.
2. PEPFF Benefits
Benefits Benefits for the PEPFF members first hired after June 30, 2010 but before July 1, 2014
vest on a prorated basis from 50% after five years up to 100% after ten years of credited service.
Benefits for PEPFF members first hired after June 30, 2014 vest on a prorated basis from 50%
after ten years up to 100% after twenty years of credited service. The annuity accrual rate is 3%
of average salary for each year of service. For PEPFF members who were first hired prior to July
1, 1989, a full annuity is available when age plus years of service equal at least 90.
Benefit increases are provided to benefit recipients each January. Beginning in 2019, the
postretirement increase will be fixed at 1%. Recipients that have been receiving the annuity or
benefit for at least 36 months as of the June 30 before the effective date of the increase will
79
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
receive the full increase. For recipients receiving the annuity or benefit for at least 25 months
but less than 36 months as of the June 30 before the effective date of the increase will receive a
reduced prorated increase.
C. CONTRIBUTIONS
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the state Legislature.
GERF Contributions
Coordinated plan members were required to contribute 6.5% of their annual salary in fiscal year 2020 and
the City was required to contribute 7.5% for Coordinated Plan members. The City’s contributions to the
GERF for the year ended December 31, 2020 were $490,969. The City’s contributions were equal to the
required contributions as set by state statute.
PEPFF Contributions
Police and Fire member’s contribution rates increased from 11.3% of pay to 11.8% and employer rates
increased from 16.95% to 17.70% on January 1, 2020. The City’s contributions to the PEPFF for the year
ended December 31, 2020 were $624,095. The City’s contributions were equal to the required
contributions as set by state statute.
D. PENSION COSTS
GERF Pension Costs
At December 31, 2020, the City reported a liability of $5,210,052 for its proportionate share of GERF’s net
pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s
contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and
the state’s contribution meets the definition of a special funding situation. The State of Minnesota’s
proportionate share of the net pension liability associated with the City totaled $160,517. The net
pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net
pension liability was based on the City’s contributions received by PERA during the measurement period
for employer payroll paid dates from July 1, 2019 through June 30, 2020, relative to the total employer
contributions received from all of PERA’s participating employers. The City’s proportionate share was
0.0869% at the end of the measurement period and 0.0865% for the beginning of the period.
City's proportionate share of the net pension liability $5,210,052
State of Minnesota's proportionate share of the
net pension liability associated with the city 160,517
Total $5,370,569
For the year ended December 31, 2020, the City recognized pension expense of $247,979 for its
proportionate share of the GERF’s pension expense. In addition, the City recognized an additional
80
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
$13,970 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s
contribution of $16 million to the GERF.
At December 31, 2020, the City reported its proportionate share of the GERF’s deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflow of
Resources
Differences between expected and
actual economic experience 47,507$ 19,712$
Changes in actuarial assumptions - 193,288
Differences between projected and
actual investment earnings 90,512 -
Changes in proportions 60,280 63,367
Contributions paid to PERA subsequent
to the measurement date 258,498 -
Total 456,797$ 276,367$
The $258,498 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and inflows
of resources related to pensions will be recognized in pension expense as follows:
Year ended Pension Expense
December 31: Amount
2021 (277,303)
2022 (31,203)
2023 104,560
2024 125,877
2025 -
Thereafter -
(78,069)$
PEPFF Pension Costs
At December 31, 2020, the City reported a liability of $3,821,192 for its proportionate share of the
PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2020 and the total
pension liability used to calculate the net pension liability was determined by an actuarial valuation as of
that date. The City’s proportionate share of the net pension liability was based on the City’s contributions
received by PERA during the measurement period for employer payroll paid dates from July 1, 2019
through June 30, 2020, relative to the total employer contributions received from all of PERA’s
participating employers. The City’s proportionate share was 0.2899% at the end of the measurement
period and 0.2983% for the beginning of the period.
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
The State of Minnesota also contributed $13.5 million to PEPFF during the plan fiscal year ended June 30,
2020. The contribution consisted of $4.5 million in direct state aid that does meet the definition of a
special funding situation and $9.0 million in fire state aid that does not meet the definition of a special
funding situation. The $4.5 million direct state was paid on October 1, 2019. Thereafter, by October 1 of
each year, the state will pay $9 million to the Police and Fire Fund until full funding is reached or July 1,
2048, whichever is earlier. The $9 million in fire state aid will continue until the fund is 90 percent funded,
or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent
funded, whichever occurs later.
As a result, the State of Minnesota is included as a non-employer contributing entity in the PEPFF
Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting
Period Only (pension allocation schedules) for the $4.5 million in direct state aid. PEPFF employers need
to recognize their proportionate share of the State of Minnesota’s pension expense (and grant revenue)
under GASB 68 special funding situation accounting and financial reporting requirements. For the year
ended December 31, 2020, the City recognized pension expense of $354,865 for its proportionate share
of the Police and Fire Plan’s pension expense. In addition, the City recognized an additional $13,351 as
pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution
of $4.5 million to the PEPFF.
The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire
Pension Plan pension allocation schedules for the $9 million in fire state aid. The City also recognized
$27,093 for the year ended December 31, 2020 as revenue and an offsetting reduction of net pension
liability for its proportionate share of the State of Minnesota’s on-behalf contributions to the Police and
Fire Fund.
At December 31, 2020, the City reported its proportionate share of the PEPFF’s deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
.
Deferred
Outflows of
Resources
Deferred Inflow
of Resources
Differences between expected and
actual economic experience 168,021$ 173,077$
Changes in actuarial assumptions 1,221,370 2,346,081
Differences between projected and
actual investment earnings 126,455 -
Changes in proportions 153,279 393,683
Contributions paid to PERA subsequent
to the measurement date 329,611 -
Total 1,998,736$ 2,912,841$
The $329,611 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and inflows
of resources related to pensions will be recognized in pension expense as outflows:
Year ended Pension Expense
December 31:Amount
2021 (342,051)$
2022 (1,091,772)
2023 47,823
2024 154,366
2025 (12,083)
Thereafter -
(1,243,717)$
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2020 actuarial valuation was determined using an individual
entry-age normal actuarial cost method and the following actuarial assumptions:
Inflation 2.50% per year
Salary Growth 3.25% per year
Investment Rate of Return 7.50%
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
survivors, and disabilitants for all plans were based on RP 2014 tables for males or females, as
appropriate, with slight adjustments to fit PERA’s experience. Cost of living benefit increases after
retirement for retirees are assumed to be 1.25% per year for GERF and 1.0% per year for PEPFF.
Actuarial assumptions used in the June 30, 2020 valuation were based on the results of actuarial
experience studies. The most recent four-year experience study for GERF was completed in 2019. The
assumption changes were adopted by the Board and become effective with the July 1, 2020 actuarial
valuation. The most recent four-year experience study for PEPFF was completed in 2020.
The following changes in actuarial assumptions and plan provisions occurred in 2020:
General Employess Fund
The price inflation assumption was decreased from 2.50% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.00%.
As recommended in the June 30, 2019 experience study, assumed salary increase rates were
decreased 0.25% and assumed rates of retirement were changed resulting in more unreduced
(normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of
termination and disability were also changed.
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
The base mortality tables were changed from RP-2014 tables to Pub-2010 tables, with
adjustments.
The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
The assumed spouse age difference was changed from two years older for females to one year
older.
The assumed number of married male new retirees electing the 100% Joint & Survivor option
changed from 35% to 45%. The assumed number of married female new retirees electing the
100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married
new retirees electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions:
Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020
through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations
occurring after June 30, 2020.
Police and Fire Fund
The The mortality projection scale was changed from MP-2018 to MP-2019.
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the
reasonableness on a regular basis of the long-term expected rate of return using a building-block method
in which best-estimate ranges of expected future rates of return are developed for each major asset class.
These ranges are combined to produce an expected long-term rate of return by weighting the expected
future rates of return by the target asset allocation percentages. The target allocation and best estimates
of geometric real rates of return for each major asset class are summarized in the following table:
Asset Class Target Allocation
Long-Term Expected
Real Rate of Return
Domestic Equity 35.5%5.10%
Private Markets 25%5.90%
Fixed Income 20%0.75%
International Equity 17.5%5.90%
Cash Equivalents 2%0.00%
F. DISCOUNT RATE
The discount rate used to measure the total pension liability in 2020 was 7.5%. The projection of cash
flows used to determine the discount rate assumed that contributions from plan members and employers
will be made at the rate set in Minnesota statutes. Based on that assumption, the fiduciary net position
of the GERF and the PEPFF was projected to be available to make all projected future benefit payments of
current plan members. Therefore, the long-term expected rate of return on pension plan investments
was applied to all periods of projected benefit payments to determine the total pension liability.
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
G. PENSION LIABILITY SENSITIVITY
The following presents the City’s proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what
the City’s proportionate share of the net pension liability would be if it were calculated using a discount
rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
1% decrease in
discount rate (6.5%) Dicount Rate (7.5%)
1% increase in
discount rate (8.5%)
City's Proportionate share of
the GERF net pension liability $8,349,906 $5,210,052 $2,619,925
City's Proportionate share of
the PEPFF net pension liabilty $7,616,186 $3,821,192 $681,500
H. PENSION EXPENSE
Detailed information about each pension plan’s fiduciary net position is available in a separately-issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained at www.mnpera.org.
I. PENSION PLAN FIDUCIARY NET POSITION
Pension expense recognized by the City for the year ended December 31, 2020 is as follows:
GERF 247,979$
PEPFF 354,865
Total 602,844
Note 11 DEFINED CONTRIBUTION PLAN
A. FIRE RELIEF ASSOCIATION, PAID ON-CALL DIVISION
The Columbia Heights Fire Department Relief Association is the administrator of a single-employer
pension plan for the paid on-call members of the City of Columbia Heights Fire Department.
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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. All provisions are within limitations
established by Minnesota statutes.
Type of Benefit. The exclusive pension provided by the Association is a "Defined Contribution Lump Sum
Service Pension" as defined in Minnesota Statutes §424A.02, Subdivision 4.
Contributions Required and Contributions Made. No contributions are required from the plan members
or the City. The plan is funded through state aid, investment income and discretionary contributions from
the City. For 2020, state aid was contributed to the plan. This state aid revenue and the related
contribution expense/expenditure of $115,508 are recognized in the accompanying financial statements
for the year ended December 31, 2020.
B. COUNCIL MEMBERS
Certain council members of the City are covered by the Public Employees Defined Contribution Plan
(PEDCP), a multiple-employer deferred compensation plan administered by the Public Employees
Retirement Association of Minnesota (PERA). The PEDCP is a tax qualified plan under section 401(a) of
the Internal Revenue Code and all contributions by or on behalf of the employees are tax deferred until
time of withdrawal.
The defined contribution plan consists of individual accounts paying a lump-sum benefit, plan benefits
depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses,
therefore, there is no future liability to the employer. Minnesota Statutes, Chapter 353D.03, specifies
plan provisions, including the employee and employer contribution rates for those qualified personnel
who elect to participate. An eligible elected official who decides to participate contributes 5% of salary,
which is matched by the elected official’s employer. Employer and employee contributions are combined
and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental
Investment Fund. For administering the plan, PERA receives 2% of employer contributions and twenty-five
hundredths of 1% (.0025) of the assets in each member's account annually.
Pension expense for the year is equal to contributions made. Total contributions made by the City of
Columbia Heights for the last three fiscal years were:
Required Rate for
Contribution Amount Percentage of Covered Payroll Employees and
For the Year Ended: Employee Employer Employee Employer Employers
December 31, 2020 $ 1,080 $ 1,080 5% 5% 5%
December 31, 2019 $ 390 $ 390 5% 5% 5%
December 31, 2018 $ 465 $ 465 5% 5% 5%
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 12 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)
A. PLAN DESCRIPTION
The City administers a single-employer defined benefit health care plan (the plan.) By state statute, the
plan provides an implicit rate subsidy for retired participants by allowing retirees under age 65 to
purchase health insurance at the premium rate available to active employees. In addition, by state
statute, the plan provides payment of insurance premiums, up to age 65, for public safety employees that
retire with a qualifying disability, equal to the current employer-paid portion of premiums for an active
employee. The employer-paid portion of premiums for an active employee is determined periodically by
negotiation between the City and collective bargaining units of city employees. The plan does not issue a
publicly available financial report. No assets are accumlated in a trust that meets the criteria in paragraph
4 of GASB Statement No. 75.
B. FUNDING POLICY
Participants under the implicit rate subsidy provision are required to contribute 100% of the stated
premium billed by the insurer. For 2020, participants under disabled public safety retiree provision were
required to contribute $0 for single coverage or a portion of the stated premium billed by the insurer for
family coverage.
Under both provisions of the plan, the City is only required to contribute on a pay-as-go basis. This
amount is listed below for the current year.
The State of Minnesota, solely at its option, reimburses the City annually for a portion of the City’s costs
under the disabled public safety retiree provision. Historically, these reimbursements have approximated
60% of the pay-as-go cost of this plan provision. These reimbursements are reported as revenue in the
year received, separate from OPEB expenses/expenditures.
C. PARTICIPANTS
As of January 1, 2019 actuarial valuation, participants of the plan consisted of:
Active Employees 116
Inactive employees or beneficiaries
currently receiving benefits 23
139
87
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY
The City’s total OPEB liability of $1,527,677 was measured as of December 31, 2020, and was determined
by an acturial valuation as of January 1, 2019. Changes in the total OPEB liability during 2020 were:
Balance - beginning of year $ 1,420,635
Charges for the year:
Service Cost 33,807
Interest 39,144
Change of benefit terms -
Differences between expected and actual experience -
Changes in assumptions 86,077
Benefit payments (51,986)
Net changes 107,042
Balance - end of year $ 1,527,677
E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS
The total OPEB liability in the January 1, 2019 actuarial valuation was determined using the following
actuarial assumptions and other inputs, applied to all periods included in the measurement, unless
otherwise specified:
Inflation 2.50%
Salary increases (Average) 3.50%
Discount rate 2.12%
Investment rate of return N/A
Retirees’ share of benefit-related costs 100%
Healthcare cost trend rates:
First year (FYE 2019) 3.00%
Second year (FYE 2020) 6.75%
Third year (FYE 2021) 6.50%
Ultimate year (FYE 2031) 4.00%
Years to ultimate year 12
Since the plan is funded on a pay-as-you-go basis, both the discount rate and the investment rate of
return was based on the 20 year AA rated municipal bond rate as of December 31, 2020.
Mortality rares were based on the RP-2014 Total Dataset Mortality tables with Scale MP-2014 and Scale
MP-2018.
Based on past experience of the plan, 60% of future retirees are assumed to continue medical coverage
until age 65. 80% of police/fire employees are assumed to continue medical coverage until age 65.
88
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
F. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT RATE.
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability
would be if it were calculated using a discount rate that is 1% lower (1.12%) or 1% higher (3.12%) than the
current discount rate:
1% Decrease
(1.12%)
Discount Rate
(2.12%)
1% Increase
(3.12%)
Total OPEB liability $ 1,681,586 $ 1,527,677 $ 1,392,183
G. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE HEALTHCARE COST TREND RATES
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability
would be if it were calculated using healthcare cost trend rates that are 1% lower (5.5% decreasing to 3%)
or 1% higher (7.5% decreasing to 5%) than the current healthcare cost trend rates.
Health Cost
1% Decrease
(5.5% decreasing to 3%)
Trend Rates
(6.5% Decreasing to 4%)
1% Increase
(7.5% decreasing to 5%)
Total OPEB liability $ 1,368,785 $ 1,527,677 $ 1,711,792
H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB
For the year ended December 31, 2020, the City recognized $94,051 of OPEB expense. At December 31,
2020, the City reported deferred outflows and inflows of resources related to OPEB from the following
sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected
and actual experience
$ 132,063 $ 0
Change of assumptions and other
inputs
$ 73,341 ($ 82,740)
89
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in
OPEB expense as follows:
Year Ended
December 31,
OPEB
Expense
2021 ($ 21,100)
2022 (21,100)
2023 (21,100)
2024 (21,100)
2025 (28,603)
Thereafter (9,661)
($122,664)
Note 13 TAX ABATEMENTS – PAY-AS-YOU-GO TAX INCREMENT
A. 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.
B. TAX ABATEMENTS – PAY-AS-YOU-GO TAX INCREMENT
The City provides tax abatements pursuant to Minnesota Statutes 469.174 to 469.1794 (Tax Increment
Financing) through a pay-as-you-go note program. Tax increment financing (TIF) can be used to
encourage private development, redevelopment, renovation and renewal, growth in low-to-moderate-
income housing, and economic development within the City. TIF captures the increase in tax capacity and
property taxes from development or redevelopment to provide funding for the related project.
The City has four tax increment pay-as-you-go agreements. The agreements are not a general obligation
of the City and are payable solely from available tax increment. Accordingly, these agreements are not
reflected in the financial statements of the City. Details of the pay-as-you-go notes are as follows:
TIF District K2, Barnick:
Issued in 1994 in the principal sum of $50,417 with no interest. Principal and interest shall be paid on
August 1, 1995 and each February 1 and August 1 thereafter to and including February 1, 2020. Payments
are payable solely from available tax increment derived from the developed/redeveloped property and
paid to the City. The pay-as-you-go note provides for payment to the developer when tax increment
received in the prior six months is greater than $3,680.56. The payment reimburses the developer for
land acquisition. Principal and interest payments was completed February 1, 2020. The City shall have no
90
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
obligation to pay any unpaid balance of principal or accrued interest that may remain after the final
payment on February 1, 2020.
TIF District R8, Crest View Project:
Issued in 2005 in the principal sum of $780,000 with an interest rate of 11% per annum. Principal and
interest shall be paid on November 1, 2005 and each February 1 and August 1 thereafter to and including
February 1, 2023. Payments are payable solely from available tax increment derived from the
developed/redeveloped property and paid to the City. The pay-as-you-go note provides for payment to
the developer equal to 89.78% of all tax increment received in the prior six months. The payment
reimburses the developer for land acquisition, site preparation, demolition & removal, soil corrections &
remediation, utility work, sidewalks, curb & gutter work, earthwork, and landscaping. Principal and
interest payments will be completed February 1, 2023. The current year abatement (TIF note payments)
amounted to $33,130. At December 31, 2020, the principal amount outstanding on the note was
$732,801.
TIF District R8, Townhouse View Project (Columbia Court Townhomes):
Issued in 2002 in the principal sum of $175,100 with an interest rate of 9.5% per annum. Principal and
interest shall be paid on August 1, 2003 and each February 1 and August 1 thereafter to and including
February 1, 2023. Payments are payable solely from available tax increment derived from the
developed/redeveloped property and paid to the City. The pay-as-you-go note provides for payment to
the developer equal to 89.78% of all tax increment received in the prior six months. The payment
reimburses the developer for land acquisition, site preparation, demolition & removal, soil corrections &
remediation, utility work, sidewalks, curb & gutter work, earthwork, and landscaping. Principal and
interest payments will be completed February 1, 2023. The current year abatement (TIF note payments)
amounted to $17,564. At December 31, 2020, the principal amount outstanding on the note was
$175,100.
TIF District T6, Huset Park Development:
Issued in 2007 in the principal sum of $6,650,000 plus allowable increase of $598,782 with an interest rate
of 6.00% per annum. Principal and interest shall be paid on February 15, 2009 and each August 15 and
February 15 thereafter to and including February 15, 2032. Payments are payable solely from available
tax increment derived from the developed/redeveloped property and paid to the City. The pay-as-you-go
note provides for payment to the developer equal to all tax increment received in the prior six months
that is in excess of bond payments, paying agent fees and $16,500 per payment period for administrative
TIF expenses. The payment reimburses the developer for relocation, demolition, environmental costs,
grading & site preparation, onsite roads & utilities, economic development authority costs, land
acquisition, and interest on any listed items to the extent such cost represents interest on any valid
evidence of indebtedness under federal income tax principles. Principal and interest payments will be
completed February 15, 2032. The City shall have no obligation to pay any unpaid balance of principal or
accrued interest that may remain after the final payment on February 15, 2032. The current year
91
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
abatement (TIF note payments) amounted to $529,329. At December 31, 2020, the principal amount
outstanding on the note was $7,248,782.
TIF District Z6, Dominium Apartment Project:
Issued in 2017 in the principal sum of $1,170,000 with an interest rate of 5.36% per annum. Principal and
interest shall be paid on August 1, 2020 and each February 1 and August 1 thereafter to and including
February 1, 2032. Payments are payable solely from available tax increment derived from the
developed/redeveloped property and paid to the City. The pay-as-you-go note provides for payment to
the developer equal to 89.78% of all tax increment received in the prior six months. The payment
reimburses the developer for acquisition costs, soil correction, site preparation and public improvements..
Principal and interest payments will be completed February 1, 2032. The City shall have no obligation to
pay any unpaid balance of principal or accrued interest that may remain after the final payment on
February 1, 2032. The current year abatement (TIF note payments) amounted to $177,941. At December
31, 2020, the principal amount outstanding on the note was $1,170,000.
Note 14 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.
Property, casualty and automobile insurance coverage are provided through a pooled self-insurance
program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to
supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial
companies for claims in excess of various amounts. The City retains risk for the deductible portions.
These deductibles are considered immaterial to the financial statements.
The City carries commercial insurance for other risks of loss, including employee health and disability
insurance.
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.
92
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
B. LITIGATION
In connection with the normal conduct of its affairs, the City is involved in various claims, litigation and
judgments. One such claim, pertaining to relocation of leased cellular antenna space between properties
owned by the City, was settled in 2020. Remaining amounts that will be paid in 2021 under that
settlement, including the cost to construct a replacement tower, are approximately $661,947. A liability
for this amount is reported in the City’s financial statements for the year ended December 31, 2020.
All other existing and pending lawsuits, claims and other actions in which the City is a defendant are
either covered by insurance; of an immaterial amount; or, in the judgement of the City management,
remotely recoverable by plaintiffs.
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.
D. CONTRACTUAL COMMITMENTS
The City has entered into contractual commitments for street construction projects and other various
projects that are in process at yearend. At December 31, 2020, the City’s obligation for such projects was
approximately $1,120,000.
E. POLLUTION REMEDIATION LIABILITY
Prior to purchasing property located at 3930 University Avenue NE in 2019 for redevelopment, the City
determined the property is contaminated from the prior owner’s business activities there. The City has
begun a three-phase approach to remediate the soil and groundwater. Phase I and II, including a
contamination investigation and preparation of a Response Action Plan were completed 2020.
The Minnesota Pollution Control Agency has reviewed and approved the Response Action Plan. The City
will complete the planned remediation of the site (Phase III), and also demolish the buildings on the
property by the end of 2021. The costs of the remediation are estimated at $108,000 using the expected
value method, with those costs expected to be incurred in 2021. A liability for this estimate is recorded
within the governmental activities of the December 31, 2020, Statement of Net Position.
In 2019, Anoka County awarded the City a federal Community Development Block Grant (CDBG) to
liquidate this liability, conditioned on performing the remediation.
93
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 15 SPECIAL ITEM
A special item is reported within the financial statements for the year ended December 31, 2020 for sale of certain
land held for resale. The developer, BPOZ Columbia Heights LLC (dba "Alatus"), purchased certain land within the
City's downtown business district from the EDA in 2020. The developer intends to construct approximately 266
multifamily rental apartment dwellings, approximately 3,280 square feet of commercial space, and approximately
21,256 square feet of gray-shell finish space designed for use as a city hall to be owned and operated by the City as
a condominium. At December 31, 2020, the estimated fair value assigned to City's right to receive the future
condominium shell was $2,115,600. The above transaction had a net special item effect of $394,307 in the
governmental funds and $2,509,907 in the government-wide statement of activities.
Note 16 RECENTLY ISSUED ACCOUNTING STANDARDS
The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were
not implemented for these financial statements:
Statement No. 87 Leases. The provisions of this Statement are effective for reporting periods beginning after
December 15, 2021.
Statement No. 91 Conduit Debt Obligations. The provisions of this Statement are effective for reporting
periods beginning after December 15, 2021.
Statement No. 92 Omnibus 2020. The provisions of this Statement are effective for reporting periods
beginning after June 15, 2021.
Statement No. 93 Replacement of Interbank Offered Rates. The removal of LIBOR as an appropriate
benchmark interest rate is effective for reporting periods ending after December 31, 2021. The requirements
of this Statement relating to leases are effective for fiscal years beginning after June 15, 2021. All other
requirements of this Statement are effective for reporting periods beginning after June 15, 2020.
Statement No. 94 Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The
provisions of this Statement are effective for reporting periods beginning after June 15, 2022.
Statement No. 96 Subscription-Based Information Technology Arrangements. The provisions of this Statement
are effective for fiscal years beginning after June 15, 2022.
The effect these standards may have on future financial statements is not determinable at this time, but it is
expected that Statements No. 87 may have a material impact.
94
REQUIRED SUPPLEMENTARY INFORMATION
95
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 9
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 2
For The Year Ended December 31, 2020
With Comparative Actual Amounts For the Year Ended December 31, 2019
Variance with
Budgeted Amounts Final Budget 2019
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Taxes $10,963,000 $10,963,000 $11,274,608 $311,608 $10,156,071
Licenses and permits 348,100 348,100 334,596 (13,504)371,369
Intergovernmental 921,500 959,727 955,096 (4,631)970,495
Charges for services 620,500 620,500 447,822 (172,678)614,312
Fines and forfeitures 91,000 91,000 101,309 10,309 116,759
Investment income:
Interest and dividends 75,000 75,000 142,941 67,941 212,174
Change in fair value - - 43,393 43,393 118,020
Other revenues 15,400 15,400 19,759 4,359 19,344
Total revenues 13,034,500 13,072,727 13,319,524 246,797 12,578,544
Expenditures:
General government:
Council 185,650 185,650 166,570 19,080 157,472
Manager 626,450 626,450 597,603 28,847 466,948
Clerk 125,800 141,398 144,851 (3,453)51,206
Legal 181,200 181,200 212,212 (31,012)173,229
Finance 954,000 954,000 945,979 8,021 915,805
Assessing 125,300 125,300 124,213 1,087 125,286
General government buildings 160,700 160,700 135,735 24,965 150,763
Contingencies 35,000 35,000 13,323 21,677 3,350
Total general government 2,394,100 2,409,698 2,340,486 69,212 2,044,059
Public safety:
Police 5,245,170 5,245,170 5,024,157 221,013 4,693,753
Fire 2,035,991 2,058,621 1,668,008 390,613 1,675,053
Capital outlay - - 76,571 (76,571)11,582
Total public safety 7,281,161 7,303,791 6,768,736 535,055 6,380,388
Public works:
Engineering 407,754 407,754 301,628 106,126 283,548
Maintenance 1,440,083 1,440,083 1,304,799 135,284 1,257,617
Capital outlay 7,000 7,000 259,235 (252,235)60,817
Total public works 1,854,837 1,854,837 1,865,662 (10,825) 1,601,982
Other departments:
Parks and recreation 1,905,873 1,905,873 1,570,452 335,421 1,794,915
Total recreation 1,905,873 1,905,873 1,570,452 335,421 1,794,915
Total expenditures 13,435,971 13,474,199 12,545,336 928,863 11,821,344
Revenues over (under) expenditures (401,471) (401,472) 774,188 1,175,660 757,200
2020
See accompanying notes to the required supplementary information.
96
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 9
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 2
For The Year Ended December 31, 2020
With Comparative Actual Amounts For the Year Ended December 31, 2019
Variance with
Budgeted Amounts Final Budget 2019
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Other financing sources (uses):
Transfers in $507,000 $497,000 $497,000 $ - $472,400
Transfers out (158,000) (758,000) (771,759) (13,759) (193,518)
Sale of capital asset - - 2,030 2,030 -
Total other financing sources (uses)349,000 (261,000) (272,729) (11,729)278,882
Net change in fund balance ($52,471) ($662,472) 501,459 $1,163,931 1,036,082
Fund balance - January 1 7,875,754 6,839,672
Fund balance - December 31 $8,377,213 $7,875,754
2020
See accompanying notes to the required supplementary information.
97
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
For The Last Ten Years
2017 2018 2019 2020
Total OPEB liability:
Service cost $39,449 $40,684 $27,667 $33,807
Interest 46,400 45,266 50,256 39,144
Differences between expected and actual experience - - 186,771 -
Changes in assumptions 45,106 (86,181) (46,691) 86,077
Benefit payments (43,938) (43,788) (50,240) (51,986)
Net change in total OPEB liability 87,017 (44,019) 167,763 107,042
Total OPEB liability - beginning 1,209,874 1,296,891 1,252,872 1,420,635
Total OPEB liability - ending $1,296,891 $1,252,872 $1,420,635 $1,527,677
Covered-employee payroll $7,604,667 $7,304,846 $8,151,167 $7,759,473
Total OPEB liability as a percentage of covered-employee payroll 17.1%17.2%17.4%19.7%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2017 and is
intended to show a ten year trend. Additional years will be reported as they become available.
See accompanying notes to the required supplementary information.
98
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
SCHEDULE OF EMPLOYER'S PROPORTIONATE SHARE OF PLAN NET PENSION LIABILITY -
GENERAL EMPLOYEES RETIREMENT FUND
For The Last Ten Years
City's
State's Proportionate City's
Proportionate Share of the Net Proportionate
City's City's Share (Amount) Pension Liability and Share of the
Proportionate Proportionate of the Net the State's Proportionate Net Pension Plan Fiduciary
Share Share (Amount) Pension Share of the Net Liability as a Net Position as
Measurement Fiscal Year (Percentage) of of the Net Liability Pension Liability Percentage of its a Percentage
Date Ending the Net Pension Pension Associated Associated with Covered Covered of the Total
June 30 December 31 Liability Liability (a) with City (b) City (a+b) Payroll (c) Payroll ((a+b)/c) Pension Liability
2015 2015 0.0873% $4,524,339 $ - $4,524,339 $5,065,173 89.3%78.2%
2016 2016 0.0849% 6,893,459 90,022 6,983,481 5,265,065 132.6%68.9%
2017 2017 0.0860% 5,490,183 69,015 5,559,198 5,538,743 100.4%75.9%
2018 2018 0.0886% 4,915,165 161,391 5,076,556 5,958,300 85.2%79.5%
2019 2019 0.0865% 4,782,391 148,660 4,931,051 6,119,252 80.6%80.2%
2020 2020 0.0869% 5,210,052 160,517 5,370,569 6,194,990 86.7%79.1%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
See accompanying notes to the required supplementary information.
99
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 12
SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND
For The Last Ten Years
Statutorily Contributions in Contribution Contributions as a
Required Relation to the Deficiency Covered Percentage of
Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered
Ending (a) Contribution (b)(a-b)(c)Payroll (b/c)
December 31, 2015 $388,736 $388,736 $ -$5,183,147 7.5%
December 31, 2016 406,405 406,405 -5,418,727 7.5%
December 31, 2017 428,288 428,288 -5,710,502 7.5%
December 31, 2018 459,367 459,367 -6,124,888 7.5%
December 31, 2019 460,213 460,213 -6,136,162 7.5%
December 31, 2020 490,969 490,969 -6,546,255 7.5%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
See accompanying notes to the required supplementary information.
100
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 13
SCHEDULE OF EMPLOYER'S PROPORTIONATE SHARE OF PLAN NET PENSION LIABILITY -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Last Ten Years
Proportionate Share
Proportionate of the Net Pension Plan Fiduciary
Proportion Share (Amount) Liability as a Net Position as
(Percentage) of of the Net Percentage of its a Percentage
Measurement Fiscal Year the Net Pension Pension Covered Covered of the Total
Date Ending Liability Liability (a) Payroll (b) Payroll (a/b) Pension Liability
June 30, 2015 December 31, 2015 0.3140% $3,567,778 $2,816,543 126.7%86.6%
June 30, 2016 December 31, 2016 0.3200% 12,842,157 3,080,202 416.9%63.9%
June 30, 2017 December 31, 2017 0.3070% 4,144,865 3,156,438 131.3%85.4%
June 30, 2018 December 31, 2018 0.2950% 3,144,396 3,108,859 101.1%88.8%
June 30, 2019 December 31, 2019 0.2983% 3,175,705 3,145,971 100.9%89.3%
June 30, 2020 December 31, 2020 0.2899% 3,821,192 3,269,979 116.9%87.2%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
See accompanying notes to the required supplementary information.
101
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 14
SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Last Ten Years
Statutorily Contributions in Contribution Contributions as a
Required Relation to the Deficiency Covered Percentage of
Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered
Ending (a) Contribution (b)(a-b)(c)Payroll (b/c)
December 31, 2015 $478,016 $478,016 $ -$2,950,716 16.20%
December 31, 2016 500,328 500,328 -3,088,446 16.20%
December 31, 2017 516,268 516,268 -3,186,840 16.20%
December 31, 2018 503,189 503,189 -3,106,104 16.20%
December 31, 2019 541,507 541,507 -3,194,734 16.95%
December 31, 2020 624,095 624,095 -3,525,958 17.70%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
See accompanying notes to the required supplementary information.
102
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2020
Note A LEGAL COMPLIANCE – BUDGETS
The legal level of budgetary control is at the fund level. The General Fund and the following Special Revenue
Fund budgets are legally adopted on a basis consistent with accounting principles generally accepted in the
United States of America:
Nonmajor special revenue funds:
Cable Television Fund
Library Fund
After-School Programs Fund
Twenty-first Century Arts Fund
Downtown Parking Fund
Planning and Inspections Fund
Economic Development Authority (Component Unit):
Economic Development Authority Administration Fund
Expenditures occurred in excess of appropriations in the following funds:
Twenty-First Century Arts Fund exceeded the budget by $1,780. However, actual revenue exceeded
the budget by $1,780.
Note B OPEB INFORMATION
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 to pay
related benefits.
2020 Changes
Changes in Actuarial Assumptions:
- The discount rate was changed from 2.74 percent to 2.12 percent based on the 20 year AA rated
municipal bond rates.
- Per capita claims costs were reset to reflect updated experience, plan(s), and premiums as of January
1, 2020.
- Decrement assumptions (i.e. withdrawal, retirement and mortality rates) are the same assumptions
used in the June 30, 2019 General Employees Retirement Fund and June 30, 2019 Public Employees
Police and Fire Fund actuarial valuations. The mortality improvement projection scale assumption
was the only update.
- Healthcare trend rates were reset to reflect updated cost increase expectations.
2019 Changes
Changes in Actuarial Assumptions:
- The discount rate was changed from 4.11 percent to 2.74 percent based on the 20 year AA rated
municipal bond rates.
- Decrement assumptions (i.e. withdrawal, retirement and mortality rates) have been updated to be
the assumptions used in the June 30, 2019 General Employees Retirement Fund and June 30, 2019
Public Employees Police and Fire Fund actuarial valuations.
- Healthcare trend rates were reset to reflect updated cost increase expectations.
103
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2020
- The general inflation rate was changed to the 2.50% rate used in the June 30, 2019 General
Employees Retirement Fund and June 30, 2019 Public Employees Police and Fire Fund actuarial
valuations (from 2.75%).
- The additional family direct subsidy premium for public safety officers disabled in the line of duty was
updated with new amounts of $200 (family subsidy of $1,095 – single subsidy of $895) for 2019, $250
($1,175 - $925) for 2020, and $300 ($1,255 - $955) for 2021. The additional family direct subsidy
premium of $300 in 2021 is assumed to continue at $300 after 2021 (changed from $0 for 2019 and
later).
2018 Changes
Changes in Actuarial Assumptions:
- The discount rate was changed from 3.44 percent to 4.11 percent based on the 20 year AA rated
municipal bond rates.
- Decrement assumptions (i.e. withdrawal, retirement and mortality rates) have been updated to be
the assumptions used in the July 1, 2018 General Employees Retirement Fund and July 1, 2018 Public
Employees Police and Fire Fund actuarial valuations.
Note C Pension Information
PERA – General Employees Retirement Fund
2020 Changes
Changes in Actuarial Assumptions:
- The price inflation assumption was decreased from 2.50% to 2.25%.
- The payroll growth assumption was decreased from 3.25% to 3.00%.
- As recommended in the June 30, 2019 experience study, assumed salary increase rates were
decreased 0.25% and assumed rates of retirement were changed resulting in more unreduced
(normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of
termination and disability were also changed.
- The base mortality tables were changed from RP-2014 tables to Pub-2010 tables, with adjustments.
- The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
- The assumed spouse age difference was changed from two years older for females to one year older.
- The assumed number of married male new retirees electing the 100% Joint & Survivor option
changed from 35% to 45%. The assumed number of married female new retirees electing the 100%
Joint & Survivor option changed from 15% to 30%. The corresponding number of married new
retirees electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions:
- Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020
through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations
occurring after June 30, 2020.
2019 Changes
Changes in Actuarial Assumptions:
- The mortality projection scale was changed from MP-2017 to MP-2018
104
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2020
Changes in the Plan Provisions
- The employer supplemental contribution was changed prospectively, decreasing from $31.0 million
to $21.0 million per year. The State’s special funding contribution was changed prospectively,
requiring $16.0 million due per year through 2031.
2018 Changes
Changes in Actuarial Assumptions:
- The mortality projection scale was changed from MP-2015 to MP-2017.
- The assumed benefit increase was changed from 1.0 percent per year through 2044 and 2.50 percent
per year thereafter to 1.25 percent per year.
2017 Changes
Changes in Actuarial Assumptions:
- The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60
percent for vested and non-vested deferred members. The revised CSA loads are now 0.0 percent for
active member liability, 15.0 percent for vested deferred member liability and 3.0 percent for non-
vested deferred member liability.
- The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all
years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter.
2016 Changes
Changes in Actuarial Assumptions:
- The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through
2035 and 2.5 percent per year thereafter to 1.0 percent per year for all future years.
- The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount
rate was changed from 7.9 percent to 7.5 percent.
- Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25
percent for payroll growth and 2.50 percent for inflation.
PERA – Public Employees Police and Fire Fund
2020 Changes
Changes in Actuarial Assumptions:
- The mortality projection scale was changed from MP-2018 to MP-2019.
2019 Changes
Changes in Actuarial Assumptions:
- The mortality projection scale was changed from MP-2017 to MP-2018
Changes in the Plan Provisions:
- There have been no changes since the prior valuation.
2018 Changes
Changes in Actuarial Assumptions:
- The mortality projection scale was changed from MP-2016 to MP-2017.
105
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2020
2017 Changes
Changes in Actuarial Assumptions:
- The single discount rate was changed from 5.6 percent to 7.5 percent.
- Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The
net effect is proposed rates that average 0.34 percent lower than the previous rates.
- Assumed rates of retirement were changed, resulting in fewer retirements.
- The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred
members. The CSA has been changed to 33 percent for vested members and 2 percent for non-
vested members.
- The base mortality table for healthy annuitants was changed from the RP-2000 fully generational
table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a
factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The
base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table
to the mortality tables assumed for healthy retirees.
- Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates
beyond the select period of three years were adjusted, resulting in more expected terminations
overall.
- Assumed percentage of married female members was decreased from 65 percent to 60 percent.
- Assumed age difference was changed from separate assumptions for male members (wives assumed
to be three years younger) and female members (husbands assumed to be four years older) to the
assumption that males are two years older than females.
- The assumed percentage of female members electing Joint and Survivor annuities was increased.
- The assumed post-retirement benefit increase rate was changed from 1.00 perfect for all years to
1.00 percent per year through 2064 and 2.50 percent thereafter.
2016 Changes
Changes in Actuarial Assumptions:
- The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through
2037 and 2.5 percent thereafter to 1.0 percent per year for all future years.
- The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount
rate changed from 7.9 percent to 5.6 percent.
- The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to
3.25 percent for payroll growth and 2.50 percent for inflation.
106
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
107
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108
NONMAJOR GOVERNMENTAL FUNDS
109
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110
SPECIAL REVENUE FUNDS
A Special Revenue Fund is used to account for the proceeds of special revenue sources that are
legally restricted to expenditures for specified purposes.
DEBT SERVICE FUNDS
The Debt Service Funds are used to account for the accumulation of resources for, and payment
of, interest, principal, and related costs on general long-term debt (other than debt of the
proprietary funds.)
CAPITAL PROJECT FUNDS
The Capital Projects Funds account for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by proprietary funds.)
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112
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING BALANCE SHEET Statement 15
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2020
Total
Nonmajor
Special Debt Capital Governmental
Assets Revenue Service Project Funds
Cash and investments $4,253,386 $2,980,478 $4,806,932 $12,040,796
Receivables:
Accounts 52,190 - - 52,190
Special assessments - 279,904 - 279,904
Taxes 17,887 55,175 - 73,062
Loans 331,000 - 59,308 390,308
Interest 8,100 3,800 10,700 22,600
Due from other governmental units 17,065 - 35,419 52,484
Interfund receivable 8,474 105,334 20,312 134,120
Prepayments 2,602 - - 2,602
Real estate held for resale 54,845 205,314 220,149 480,308
Total assets $4,745,549 $3,630,005 $5,152,820 $13,528,374
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $17,340 $361,515 $9,693 $388,548
Accrued salaries and withholdings payable 15,535 - 1,628 17,163
Contracts payable - retained percentage 661,947 - 27,067 689,014
Due to other governmental units 8,012 2,129 - 10,141
Interfund payable 25,106 109,014 - 134,120
Unearned revenue 43,423 - - 43,423
Deposits 30,850 - 24,509 55,359
Total liabilities 802,213 472,658 62,897 1,337,768
Deferred inflows of resources:
Unavailable revenue 340,850 294,081 - 634,931
Total deferred inflows of resources 340,850 294,081 0 634,931
Fund balance:
Nonspendable 2,602 - - 2,602
Restricted 125,032 2,968,560 506,793 3,600,385
Committed 4,091,398 - 4,583,130 8,674,528
Unassigned (616,546) (105,294) - (721,840)
Total fund balance 3,602,486 2,863,266 5,089,923 11,555,675
Total liabilities, deferred inflows
of resources, and fund balance $4,745,549 $3,630,005 $5,152,820 $13,528,374
113
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Statement 16
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2020
Total
Nonmajor
Special Debt Capital Governmental
Revenue Service Project Funds
Revenues:
Taxes $1,251,127 $736,244 $ - $1,987,371
Tax increment collections - 1,116,418 - 1,116,418
Special assessments - 105,296 - 105,296
Licenses and permits 346,230 - - 346,230
Intergovernmental 1,704,820 475,000 431,888 2,611,708
Charges for services 300,359 - 171,830 472,189
Fines and forfeitures 8,592 - - 8,592
Investment income:
Interest and dividends 37,900 28,031 53,566 119,497
Change in fair value 11,400 7,300 15,000 33,700
Other revenues 78,806 3,948 75 82,829
Total revenues 3,739,234 2,472,237 672,359 6,883,830
Expenditures:
Current:
General government 115,144 - - 115,144
Public safety 1,197,522 - 29,848 1,227,370
Public works 73,489 - 194,238 267,727
Culture and recreation 1,076,097 - - 1,076,097
Community development 606,624 287,652 - 894,276
Capital outlay:
General government 39,605 - - 39,605
Public safety 234,663 - 286,831 521,494
Public works 121,506 - 1,648,132 1,769,638
Community development 22,200 - - 22,200
Debt service:
Principal retirement - 980,000 - 980,000
Interest and fiscal charges - 555,801 - 555,801
Developer incentives - 769,402 - 769,402
Total expenditures 3,486,850 2,592,855 2,159,049 8,238,754
Revenues over (under) expenditures 252,384 (120,618) (1,486,690) (1,354,924)
Other financing sources (uses):
Transfers in 156,000 88,123 310 244,433
Transfers out (128,900) (37,655) - (166,555)
Sale of capital assets - - 20,525 20,525
Total other financing sources (uses)27,100 50,468 20,835 98,403
Special item (684,219) (479,249) - (1,163,468)
Net change in fund balance (404,735) (549,399) (1,465,855) (2,419,989)
Fund balance - January 1 4,007,221 3,412,665 6,555,778 13,975,664
Fund balance - December 31 $3,602,486 $2,863,266 $5,089,923 $11,555,675
114
NONMAJOR
SPECIAL REVENUE FUNDS
The City of Columbia Heights had the following Nonmajor Special Revenue Funds during the year:
Cable Television Fund 225 – established to account for revenues and expenditures associated
with the cable television franchise.
Police Forfeiture Fund 265 – established to account for forfeited cash and property received by
the police department.
Public Safety Grant Fund 272 – established to account for revenues and expenditures associated
with grants aimed towards public safety.
Library Fund 240 – established in 1993 to account for revenues and expenditures of the library.
After School Programs Fund 261 – established to account for revenues and expenditures
associated with various youth enrichment activities conducted by the recreation department and
the library, under agreements with Independent School District 13.
Twenty-first Century Arts Fund 262 – established to account for revenues and expenditures
associated with a grant received through Independent School District 13.
Contributed Projects – Recreation Fund 881 – established to monitor contributions for
recreational activities and related expenditures.
Contributed Projects – Other Fund 883 – established to monitor contributions and related
expenditures for activities other than recreation.
Special Projects Fund 226 – established to monitor revenues from special projects and related
expenditures.
Downtown Parking Fund 228 – established to account for revenues and expenditures associated
with municipal parking in the downtown area.
Planning & Inspection Fund 201 – established to account for revenues and expenditures
associated with planning and building inspections within the City.
Anoka County Comm. Dev Programs Fund 202 – established to account for revenues and
expenditures of community development programs funded by or passed-though Anoka County
to the City.
Economic Development Authority – a separate legal entity from the City. The mayor and City
Council comprise the majority membership of this component unit. Its purpose is to foster
economic development in the City.
Economic Development Authority Administration Fund 204 – established to account for
revenues and expenditures of all EDA activity not accounted for in other EDA funds.
115
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2020
Cable Television
Fund 225
Police
Forfeiture
Fund 265
Library Fund
240
After-School
Programs Fund
261
Twenty-first
Century Arts
Fund 262
Contributed
Projects -
Recreation
Fund 881
Assets
Cash and investments $1,048,693 $31,956 $738,873 $99,083 $ - $209,395
Receivables:
Accounts 52,190 - - - - -
Taxes - - - - - -
Loans - - - - - -
Interest 2,400 - 1,100 200 - 500
Due from other governmental units - - - - 6,197 -
Interfund receivable - - - 4,794 - -
Prepayments - - 2,602 - - -
Real estate held for resale - - - - - -
Total assets $1,103,283 $31,956 $742,575 $104,077 $6,197 $209,895
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $1,000 $ - $9,216 $ - $1,089 $ -
Accrued salaries and withholdings payable 645 - 8,970 - 307 -
Contracts payable - - - - - -
Due to other governmental units - - 4,265 - - -
Interfund payable - - - - 4,794 -
Unearned revenue - 11,008 - - - -
Deposits - - - - - -
Total liabilities 1,645 11,008 22,451 0 6,190 0
Deferred inflows of resources:
Unavailable revenue - - - - - -
Total deferred inflows of resources 0 0 0 0 0 0
Fund balance:
Nonspendable - - 2,602 - - -
Restricted - 20,948 - 104,077 7 -
Committed 1,101,638 - 717,522 - - 209,895
Unassigned - - - - - -
Total fund balance 1,101,638 20,948 720,124 104,077 7 209,895
Total liabilities, deferred inflows
of resources, and fund balance $1,103,283 $31,956 $742,575 $104,077 $6,197 $209,895
116
Statement 17
Contributed
Projects - Other
Fund 883
Special Projects
Fund 226
Downtown
Parking Fund 228
Planning and
Inspections Fund
201
Anoka County
Comm. Dev.
Programs Fund
202
Public Safety
Grant
Fund 272
EDA
Administration
Fund 204
(Component Unit)
Total Nonmajor
Special Revenue
Funds
$221,041 $859,714 $19,958 $425,617 $ - $ - $599,056 $4,253,386
- - - - - - - 52,190
- - - - - - 17,887 17,887
- - - - 231,000 - 100,000 331,000
500 1,900 - 700 - - 800 8,100
- - - - 10,868 - - 17,065
- - - - - - 3,680 8,474
- - - - - - - 2,602
- - - - 54,845 - - 54,845
$221,541 $861,614 $19,958 $426,317 $296,713 $0 $721,423 $4,745,549
$ - $ - $3,191 $2,315 $ - $ - $529 $17,340
- - - 3,123 - - 2,490 15,535
- - - - 661,947 - - 661,947
- - - 3,747 - - - 8,012
- - - - 20,312 - - 25,106
- 32,415 - - - - - 43,423
- 5,850 - - - - 25,000 30,850
0 38,265 3,191 9,185 682,259 0 28,019 802,213
- - - - 231,000 - 109,850 340,850
0000231,000 0 109,850 340,850
- - - - - - - 2,602
- - - - - - - 125,032
221,541 823,349 16,767 417,132 - - 583,554 4,091,398
- - - - (616,546) - - (616,546)
221,541 823,349 16,767 417,132 (616,546)0 583,554 3,602,486
$221,541 $861,614 $19,958 $426,317 $296,713 $0 $721,423 $4,745,549
117
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2020
Cable
Television
Fund 225
Police
Forfeiture
Fund 265
Library Fund
240
After-School
Programs Fund
261
Twenty-first
Century Arts
Fund 262
Contributed
Projects -
Recreation Fund
881
Revenues:
Taxes $ - $ - $1,002,850 $ - $ - $ -
Licenses and permits - - - - - -
Intergovernmental - - - - 45,022 -
Fees/program revenues 174,592 - 7,347 236 2,158 -
Rents - - - - - -
Fines and forfeitures - 4,189 4,403 - - -
Investment income:
Interest and dividends 11,000 - 5,300 1,100 - 2,100
Change in fair value 3,300 - 1,600 300 - 600
Other revenues:
Contributions - - - - - 21,200
Miscellaneous 32,918 - 2,301 - - -
Total revenues 221,810 4,189 1,023,801 1,636 47,180 23,900
Expenditures:
Personal services 47,357 - 674,632 1,740 22,526 -
Supplies 2,889 - 97,518 - 11,239 7,980
Other services and charges 64,898 - 222,486 1,155 13,415 -
Capital outlay - - - - - -
Total expenditures 115,144 0 994,636 2,895 47,180 7,980
Revenues over (under) expenditures 106,666 4,189 29,165 (1,259)0 15,920
Other financing sources (uses):
Transfers in - - 11,000 - - -
Transfers out (65,400) - (14,500) - - -
Total other financing sources (uses)(65,400)0 (3,500)0 0 0
Special item - - - - - -
Net change in fund balance 41,266 4,189 25,665 (1,259)0 15,920
Fund balance - January 1 1,060,372 16,759 694,459 105,336 7 193,975
Fund balance - December 31 $1,101,638 $20,948 $720,124 $104,077 $7 $209,895
118
Statement 18
Contributed
Projects - Other
Fund 883
Special Projects
Fund 226
Downtown
Parking Fund 228
Planning and
Inspections Fund
201
Anoka County
Comm. Dev.
Programs Fund
202
Public Safety
Grant
Fund 272
EDA Administration
Fund 204
(Component Unit)
Total Nonmajor
Special Revenue
Funds
$ - $ - $ - $ - $ - $ - $248,277 $1,251,127
- - - 346,230 - - - 346,230
- 33,300 - - 35,623 1,590,875 - 1,704,820
- 29,438 - 99 - - 30 213,900
- 68,259 18,200 - - - - 86,459
- - - - - - - 8,592
2,200 8,700 100 3,300 200 - 3,900 37,900
700 2,600 - 1,000 100 - 1,200 11,400
18,550 - - - - - - 39,750
2,876 - - 429 532 - - 39,056
24,326 142,297 18,300 351,058 36,455 1,590,875 253,407 3,739,234
- - 202 351,279 - 383,502 147,639 1,628,877
24,621 15,524 - 2,069 - 453,523 1,922 617,285
- 57,965 23,204 49,321 35,621 335,876 18,773 822,714
- - - - - 417,974 - 417,974
24,621 73,489 23,406 402,669 35,621 1,590,875 168,334 3,486,850
(295)68,808 (5,106) (51,611)834 0 85,073 252,384
- - 10,000 135,000 - - - 156,000
- (10,000) - (19,500) - - (19,500) (128,900)
0 (10,000)10,000 115,500 0 0 (19,500)27,100
- - - - (684,219) - - (684,219)
(295)58,808 4,894 63,889 (683,385)0 65,573 (404,735)
221,836 764,541 11,873 353,243 66,839 - 517,981 4,007,221
$221,541 $823,349 $16,767 $417,132 ($616,546)$0 $583,554 $3,602,486
119
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - CABLE TELEVISION FUND 225 Statement 19
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2020
With Comparative Actual Amounts For the Year Ended December 31, 2019
Variance with
Budgeted Amounts Final Budget- 2019
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Franchise fees $165,000 $165,000 $174,592 $9,592 $182,085
Investment income:
Interest and dividends 5,000 5,000 11,000 6,000 16,000
Change in fair value - - 3,300 3,300 8,900
Other revenues:
Miscellaneous 31,000 31,000 32,918 1,918 35,399
Total revenues 201,000 201,000 221,810 20,810 242,384
Expenditures:
Personal services 49,500 49,500 47,357 2,143 43,479
Supplies 2,200 2,200 2,889 (689) 11,826
Other services and charges 91,600 91,600 64,898 26,702 43,120
Total expenditures 143,300 143,300 115,144 28,156 98,425
Revenues over expenditures 57,700 57,700 106,666 48,966 143,959
Other financing sources (uses):
Transfers out (65,400) (65,400) (65,400) - (64,500)
Net change in fund balance ($7,700) ($7,700) 41,266 $48,966 79,459
Fund balance - January 1 1,060,372 980,913
Fund balance - December 31 $1,101,638 $1,060,372
2020
120
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - POLICE FORFEITURE FUND 265 Statement 20
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2020
With Comparative Actual Amounts For the Year Ended December 31, 2019
2020 2019
Revenues:
Forfeitures $4,189 $ -
Expenditures: - -
Revenues over (under) expenditures 4,189 0
Fund balance - January 1 16,759 16,759
Fund balance - December 31 $20,948 $16,759
121
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - LIBRARY FUND 240 Statement 21
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2020
With Comparative Actual Amounts For the Year Ended December 31, 2019
Variance with
Budgeted Amounts Final Budget- 2019
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Taxes $1,002,850 $1,002,850 $1,002,850 $ - $955,095
Charges for services 15,300 15,300 7,347 (7,953) 15,278
Fines 11,000 11,000 4,403 (6,597) 9,344
Investment income:
Interest and dividends 12,000 12,000 5,300 (6,700) 7,700
Change in fair value - - 1,600 1,600 4,300
Other revenues:
Miscellaneous 500 500 2,301 1,801 1,104
Total revenues 1,041,650 1,041,650 1,023,801 (17,849) 992,821
Expenditures:
Personal services 706,700 706,700 674,632 32,068 637,245
Supplies 98,500 98,500 97,518 982 88,179
Other services and charges 232,950 232,950 222,486 10,464 232,164
Total expenditures 1,038,150 1,038,150 994,636 43,514 957,588
Revenues over expenditures 3,500 3,500 29,165 25,665 35,233
Other financing sources (uses):
Transfers in 11,000 11,000 11,000 - 11,000
Transfers out (14,500) (14,500) (14,500) - (14,700)
Total other financing sources (uses) (3,500) (3,500) (3,500) 0 (3,700)
Net change in fund balance $0 $0 25,665 $25,665 31,533
Fund balance - January 1 694,459 662,926
Fund balance - December 31 $720,124 $694,459
2020
122
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - AFTER-SCHOOL PROGRAMS FUND 261 Statement 22
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2020
With Comparative Actual Amounts For the Year Ended December 31, 2019
Variance with
Budgeted Amounts Final Budget- 2019
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Program revenue $20,000 $20,000 $236 ($19,764) $6,816
Investment income:
Interest and dividends 2,000 2,000 1,100 (900) 1,800
Change in fair value - - 300 300 1,000
Total revenues 22,000 22,000 1,636 (20,364) 9,616
Expenditures:
Personal services 22,600 22,600 1,740 20,860 5,617
Supplies 3,000 3,000 - 3,000 -
Other services and charges 18,000 18,000 1,155 16,845 10,085
Total expenditures 43,600 43,600 2,895 40,705 15,702
Revenues over (under) expenditures ($21,600) ($21,600) (1,259) $20,341 (6,086)
Fund balance - January 1 105,336 111,422
Fund balance - December 31 $104,077 $105,336
2020
123
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - CONTRIBUTED PROJECTS-RECREATION FUND 881 Statement 23
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2020
With Comparative Actual Amounts For the Year Ended December 31, 2019
2020 2019
Revenues:
Investment income:
Interest and dividends $2,100 $2,900
Change in fair value 600 1,600
Other revenue:
Contributions 21,200 23,995
Total revenues 23,900 28,495
Expenditures:
Supplies 7,980 11,094
Other services and charges - 200
Total expenditures 7,980 11,294
Revenues over expenditures 15,920 17,201
Fund balance - January 1 193,975 176,774
Fund balance - December 31 $209,895 $193,975
124
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - CONTRIBUTED PROJECTS - OTHER FUND 883 Statement 24
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2020
With Comparative Actual Amounts For the Year Ended December 31, 2019
2020 2019
Revenues:
Investment income:
Interest and dividends $2,200 $3,800
Change in fair value 700 2,100
Contributions 18,550 7,953
Miscellaneous 2,876 306
Total revenues 24,326 14,159
Expenditures:
Supplies 24,621 19,985
Other services and charges - 5,887
Total expenditures 24,621 25,872
Revenues over (under) expenditures (295)(11,713)
Fund balance - January 1 221,836 233,549
Fund balance - December 31 $221,541 $221,836
125
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - SPECIAL PROJECTS FUND 226 Statement 25
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2020
With Comparative Actual Amounts For the Year Ended December 31, 2019
2020 2019
Revenues:
Intergovernmental $33,300 $ -
Fees/program revenue 29,438 181,935
Rents 68,259 38,192
Investment income:
Interest and dividends 8,700 10,300
Change in fair value 2,600 5,700
Total revenues 142,297 236,127
Expenditures:
Supplies 15,524 -
Other services and charges 57,965 497
Total expenditures 73,489 497
Revenues over (under) expenditures 68,808 235,630
Other financing sources (uses):
Transfers out (10,000) (300,000)
Net change in fund balance 58,808 (64,370)
Fund balance - January 1 764,541 828,911
Fund balance - December 31 $823,349 $764,541
126
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - PLANNING AND INSPECTIONS FUND 201 Statement 26
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2020
With Comparative Actual Amounts For the Year Ended December 31, 2019
Variance with
Budgeted Amounts Final Budget- 2019
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Licenses and permits $320,585 $320,585 $346,230 $25,645 $273,460
Fees/program revenues - - 99 99 1,071
Investment income:
Interest and dividends - - 3,300 3,300 5,500
Change in fair value - - 1,000 1,000 3,100
Miscellaneous 2,000 2,000 429 (1,571) 413
Total revenues 322,585 322,585 351,058 28,473 283,544
Expenditures:
Personal services 409,300 409,300 351,279 58,021 407,633
Supplies 2,950 2,950 2,069 881 10,246
Other services and charges 25,935 25,935 49,321 (23,386) 29,980
Total expenditures 438,185 438,185 402,669 35,516 447,859
Revenues over (under) expenditures (115,600) (115,600) (51,611) 63,989 (164,315)
Other financing sources (uses):
Transfers in 135,000 135,000 135,000 - 135,000
Transfers out (19,500) (19,500) (19,500) - (16,000)
Total other financing sources (uses):115,500 115,500 115,500 - 119,000
Net change in fund balance ($100) ($100) 63,889 $63,989 (45,315)
Fund balance - January 1 353,243 398,558
Fund balance - December 31 $417,132 $353,243
2020
127
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - ANOKA COUNTY COMM. DEV. PROGRAMS FUND 202 Statement 27
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2020
With Comparative Actual Amounts For the Year Ended December 31, 2019
2020 2019
Revenues:
Intergovernmental $35,623 $ -
Investment income:
Interest and dividends 200 200
Change in fair value 100 100
Other revenues 532 11,703
Total revenues 36,455 12,003
Expenditures:
Other services and charges 35,621 -
Total expenditures 35,621 0
Revenues over (under) expenditures 834 12,003
Special item (684,219) -
Net change in fund balance (683,385) 12,003
Fund balance - January 1 66,839 54,836
Fund balance - December 31 ($616,546) $66,839
128
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - TWENTY-FIRST CENTURY ARTS FUND 262 Statement 28
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2020
With Comparative Actual Amounts For the Year Ended December 31, 2019
Variance with
Budgeted Amounts Final Budget- 2019
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Intergovernmental $41,400 $41,400 $45,022 $3,622 $34,236
Fees/program revenue 4,000 4,000 2,158 (1,842) 5,161
Total revenues 45,400 45,400 47,180 1,780 39,397
Expenditures:
Personal services 32,400 32,400 22,526 9,874 18,685
Supplies 6,000 6,000 11,239 (5,239) 2,691
Other services and charges 7,000 7,000 13,415 (6,415) 18,014
Total expenditures 45,400 45,400 47,180 (1,780) 39,390
Revenues over (under) expenditures $0 $0 0 $0 7
Fund balance - January 1 7 -
Fund balance - December 31 $7 $7
2020
129
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - DOWNTOWN PARKING FUND 228 Statement 29
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2020
With Comparative Actual Amounts For the Year Ended December 31, 2019
Variance with
Budgeted Amounts Final Budget- 2019
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Fees $ - $ - $ - - $25,288
Rents 15,000 15,000 18,200 (3,200) 27,627
Investment income:
Interest and dividends - - 100 (100)600
Change in fair value - - - - 300
Total revenues 15,000 15,000 18,300 (3,300) 53,815
Expenditures:
Personal services - - 202 (202) -
Other services and charges 25,000 25,000 23,204 1,796 50,704
Total expenditures 25,000 25,000 23,406 1,594 50,704
Revenues over (under) expenditures (10,000) (10,000) (5,106) (4,894) 3,111
Other financing sources (uses):
Transfers in 10,000 10,000 10,000 - -
Net Change in fund balance $0 $0 4,894 ($4,894) 3,111
Fund balance - January 1 11,873 8,762
Fund balance - December 31 $16,767 $11,873
2020
130
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - PUBLIC SAFETY GRANT FUND 272 Statement 30
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2020
With Comparative Actual Amounts For the Year Ended December 31, 2019
2020 2019
Revenues:
Intergovernmental $1,590,875 $ -
Expenditures:
Personal services 383,502 -
Supplies 453,523 -
Other services and charges 335,876 -
Capital outlay 417,974 -
Total expenditures 1,590,875 0
Revenues over (under) expenditures 0 0
Fund balance - January 1 - 0
Fund balance - December 31 $0 $0
131
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND-EDA ADMINISTRATION FUND 204 Statement 31
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
(COMPONENT UNIT)
For The Year Ended December 31, 2020
With Comparative Actual Amounts For the Year Ended December 31, 2019
Variance with
Budgeted Amounts Final Budget- 2019
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Taxes $245,100 $245,100 $248,277 $3,177 $244,276
Intergovernmental - - - - -
Fees/program revenues - - 30 30 30
Investment income:
Interest and dividends - - 3,900 3,900 7,200
Change in fair value - - 1,200 1,200 4,000
Total revenues 245,100 245,100 253,407 8,307 255,506
Expenditures:
Personal services 193,700 193,700 147,639 46,061 110,611
Supplies 1,830 1,830 1,922 (92)348
Other services and charges 24,170 24,170 18,773 5,397 33,938
Total expenditures 219,700 219,700 168,334 51,366 144,897
Revenues over (under) expenditures 25,400 25,400 85,073 59,673 110,609
Other financing sources (uses):
Transfers out (19,500) (19,500) (19,500) - (16,000)
Net change in fund balance $5,900 $5,900 65,573 $59,673 94,609
Fund balance - January 1 517,981 423,372
Fund balance - December 31 $583,554 $517,981
2020
132
NONMAJOR
DEBT SERVICE FUNDS
The City of Columbia Heights had the following kinds of Nonmajor Debt Service Funds during the
year:
Bond Debt Service Funds – are separate funds used to account for the revenues and expenditures
of each separate bond issue. Both the City and the Economic Development Authority issue
bonds.
Tax Increment Financing Funds – are separate funds used to account for the revenues and
expenditures of each separate Tax Increment Financing District. The Economic Development
Authority authorizes and administers tax increment activities within the City.
133
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2020
2008A Taxable
GO Housing
Improvement
Area Bonds Fund
315
G.O. Public
Facilities Bonds
2009A Fund 344
G.O.
Improvement /
Revenue Bonds
2013A Fund 345
GO Library Bonds
2015A Fund 346
GO Public Safety
Ctr. Bonds
2017B Fund 347
GO Public
Facilities Bonds
2018A Fund 348
Assets
Cash and investments $249,705 $ - $106,973 $399,799 $450,142 $241,126
Receivables:
Taxes - - - 7,590 9,150 6,204
Assessments 279,904 - - - - -
Interest 400 - 200 300 300 300
Interfund receivable - - - - - -
Real estate for resale - - - - - -
Total assets $530,009 $0 $107,173 $407,689 $459,592 $247,630
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $ - $ - $ - $ - $ - $ -
Due to other governmental units - - - - - -
Interfund payable - - - - - -
Total liabilities 0 0 0 0 0 0
Deferred inflows of resources:
Unavailable revenue 279,904 - - - - -
Total deferred inflows of resources 279,904 0 0 0 0 0
Fund balance:
Restricted 250,105 - 107,173 407,689 459,592 247,630
Unassigned - - - - - -
Total fund balance 250,105 0 107,173 407,689 459,592 247,630
Total liabilities, deferred inflows
of resources, and fund balance $530,009 $0 $107,173 $407,689 $459,592 $247,630
134
Statement 32
Tax Increment
Bonds Fund 376
TIF Multi-Use
Redevelopment Plan
Fund 385
TIF Transition Block
Fund 389
TIF 47th and Central
Avenue Fund 371
TIF Huset Park Area
Fund 372
TIF Central Valu
Center Fund 374
TIF 47th and Grand
Fund 375
TIF Scattered Site
Fund 391
Total Nonmajor Debt
Service Funds
$300,951 $ - $102,954 $ - $1,009,668 $ - $119,060 $100 $2,980,478
- 2,578 - 2,129 27,524 - - - 55,175
- - - - - - - - 279,904
600 - 200 - 1,500 - - - 3,800
105,334 - - - - - - - 105,334
205,314 - - - - - - - 205,314
$612,199 $2,578 $103,154 $2,129 $1,038,692 $0 $119,060 $100 $3,630,005
$ - $ - $26,847 $ - $222,054 $ - $112,614 $ - $361,515
- - - 2,129 - - - - 2,129
- 2,578 - - - 2,638 1,042 102,756 109,014
0 2,578 26,847 2,129 222,054 2,638 113,656 102,756 472,658
- - - - 14,177 - - - 294,081
000014,177 0 0 0 294,081
612,199 - 76,307 - 802,461 - 5,404 - 2,968,560
- - - - - (2,638) - (102,656)(105,294)
612,199 0 76,307 0 802,461 (2,638)5,404 (102,656)2,863,266
$612,199 $2,578 $103,154 $2,129 $1,038,692 $0 $119,060 $100 $3,630,005
EDA Component Unit
135
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2020
2008A Taxable GO
Housing
Improvement Area
Bonds Fund 315
G.O. Public
Facilities Bonds
2009A Fund 344
G.O. Improvement
/ Revenue Bonds
2013A Fund 345
GO Library Bonds
2015A Fund 346
GO Public Safety
Ctr. Bonds 2017B
Fund 347
GO Public Facilities
Bonds 2018A Fund
348
Revenues:
Taxes $ - $ - $ - $243,908 $294,243 $198,093
Tax increment collections - - - - - -
Special assessments 105,296 - - - - -
Intergovernmental - - - 225,000 250,000 -
Investment income:
Interest and dividends 1,900 - 800 1,300 1,300 1,200
Change in fair value 600 - 200 400 400 400
Other revenues - - - - - -
Total revenues 107,796 0 1,000 470,608 545,943 199,693
Expenditures:
Community development:
Other services and charges - - - - - -
Debt service:
Principal retirement 75,000 - 45,000 280,000 315,000 135,000
Interest and fiscal charges 24,198 - 5,513 178,202 217,958 62,266
Developer incentives - - - - - -
Total expenditures 99,198 0 50,513 458,202 532,958 197,266
Revenues over (under) expenditures 8,598 0 (49,513)12,406 12,985 2,427
Other financing sources (uses):
Transfers in - - 41,572 - - 8,896
Transfers out - - - - - -
Total other financing sources (uses) - - 41,572 - - 8,896
Special item - - - - - -
Net change in fund balance 8,598 0 (7,941)12,406 12,985 11,323
Fund balance - January 1 241,507 - 115,114 395,283 446,607 236,307
Fund balance - December 31 $250,105 $0 $107,173 $407,689 $459,592 $247,630
136
Statement 33
Tax Increment
Bonds Fund 376
TIF Multi-Use
Redevelopment
Plan Fund 385
TIF Transition Block
Fund 389
TIF 47th and
Central Avenue
Fund 371
TIF Huset Park Area
Fund 372
TIF Central Valu
Center Fund 374
TIF 47th and Grand
Fund 375
TIF Scattered Site
Fund 391
Total Nonmajor
Debt Service Funds
$ - $ - $ - $ - $ - $ - $ - $ - $736,244
- 32,906 59,783 - 782,617 - 197,306 43,806 1,116,418
- - - - - - - - 105,296
- - - - - 475,000
8,031 1,300 800 4,500 6,700 - 100 100 28,031
900 500 200 1,700 2,000 - - - 7,300
3,948 - - - - - - - 3,948
12,879 34,706 60,783 6,200 791,317 0 197,406 43,906 2,472,237
5,930 - 2,010 268,912 7,953 - 1,758 1,089 287,652
- - - - 130,000 - - - 980,000
- - - - 62,433 - - 5,231 555,801
- 1,794 53,694 - 524,712 - 189,202 - 769,402
5,930 1,794 55,704 268,912 725,098 0 190,960 6,320 2,592,855
6,949 32,912 5,079 (262,712)66,219 0 6,446 37,586 (120,618)
- 37,655 - - - - - - 88,123
- - - (37,655) - - - - (37,655)
- 37,655 - (37,655) - - - - 50,468
- (251,365) - (227,884) - - - - (479,249)
6,949 (180,798)5,079 (528,251)66,219 0 6,446 37,586 (549,399)
605,250 180,798 71,228 528,251 736,242 (2,638)(1,042)(140,242)3,412,665
$612,199 $0 $76,307 $0 $802,461 ($2,638)$5,404 ($102,656) $2,863,266
EDA Component Unit
137
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138
NONMAJOR
CAPITAL PROJECT FUNDS
The City of Columbia Heights had the following Nonmajor Capital Project Funds during the year:
Municipal State Aid Street Fund 212/402 – maintained according to state statute to account for
maintenance and construction of municipal state aid street systems.
Capital Improvement Parks Fund 412 – used to account for improvements in City parks. This
includes park dedication fees when available, the use of which is limited by state statute to park
improvements.
Capital Improvement Development Fund 420 – used to account for improvements to various
development areas within the City.
Infrastructure Replacement Fund 430 – used to fund replacement of City infrastructure.
Capital Equipment Replacement – General Governmental Fund 431 – used to account for the
replacement of capital assets as needed.
139
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2020
Municipal State Aid
Street Fund 212 & 402
Capital Improvement
Parks Fund 412
Assets
Cash and investments $482,666 $137,339
Receivables:
Loans - -
Interest - 700
Due from other governmental units 35,419 -
Interfund receivable - -
Real estate held for resale - -
Total assets $518,085 $138,039
Liabilities and Fund Balance
Liabilities:
Accounts payable 9,693 -
Accrued salaries and withholdings payable 1,599 29
Contracts payable - retained percentage - 27,067
Deposits - -
Total liabilities 11,292 27,096
Fund balance:
Restricted 506,793 -
Committed - 110,943
Total fund balance 506,793 110,943
Total liabilities and fund balance $518,085 $138,039
140
Statement 34
Capital Improvement
Development Fund
420
Infrastructure
Replacement Fund
430
Capital Equipment
Replacement General
Gov't Fund 431
Total Nonmajor
Capital Project Funds
$690,084 $872,499 $2,624,344 $4,806,932
59,308 - - 59,308
1,500 3,500 5,000 10,700
- - - 35,419
20,312 - - 20,312
220,149 - - 220,149
$991,353 $875,999 $2,629,344 $5,152,820
- - - 9,693
- - - 1,628
- - - 27,067
24,509 - - 24,509
24,509 0 0 62,897
- - - 506,793
966,844 875,999 2,629,344 4,583,130
966,844 875,999 2,629,344 5,089,923
$991,353 $875,999 $2,629,344 $5,152,820
141
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2020
Municipal State Aid
Street Fund 212 & 402
Capital Improvement
Parks Fund 412
Revenues:
Intergovernmental $259,984 $50,000
Charges for services - 80,330
Investment income:
Interest and dividends - 3,200
Change in fair value - 1,000
Other revenues - -
Total revenues 259,984 134,530
Expenditures:
Current:
Public Safety - -
Public works 194,238 -
Capital outlay
Public safety - -
Public works 163,750 403,850
Total expenditures 357,988 403,850
Revenue over (under) expenditures (98,004)(269,320)
Other financing sources (uses):
Transfers in 310 -
Sale of capital assets - -
Total other financing sources (uses)310 0
Net change in fund balance (97,694)(269,320)
Fund balance - January 1 604,487 380,263
Fund balance - December 31 $506,793 $110,943
142
Statement 35
Capital Improvement
Development Fund
420
Infrastructure
Replacement Fund
430
Capital Equipment
Replacement
General Gov't Fund
431
Total Nonmajor
Capital Project Funds
$ - $50,000 $71,904 $431,888
91,500 - - 171,830
8,766 16,100 25,500 53,566
2,100 4,900 7,000 15,000
75 - - 75
102,441 71,000 104,404 672,359
1,906 - 27,942 29,848
- - - 194,238
- - 286,831 286,831
- 746,280 334,252 1,648,132
1,906 746,280 649,025 2,159,049
100,535 (675,280) (544,621) (1,486,690)
- - - 310
- - 20,525 20,525
0 0 20,525 20,835
100,535 (675,280) (524,096) (1,465,855)
866,309 1,551,279 3,153,440 6,555,778
$966,844 $875,999 $2,629,344 $5,089,923
143
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144
ENTERPRISE FUNDS
The Enterprise Funds are used to account for operations that are financed and/or 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 sanitary sewer
disposal within the City.
Refuse Utility Fund – used to account for revenues and expenses associated with organized
collection of refuse and recycling in the City.
Storm Sewer Utility Fund – used to account for revenues and expenses associated with storm
water management.
Liquor Fund – used to account for revenues and expenses associated with the operation of three
off-sale municipal liquor stores.
145
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND Statement 36
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2020
With Comparative Totals For December 31, 2019
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
Assets:2020 2019
Current assets:
Cash and cash equivalents $237,935 $631,856 $ - $88,441 $ - $958,232 $1,319,126
Receivables:
Accounts (net of allowance for
uncollectables) 870,757 - - - - 870,757 794,489
Interest - 1,500 - 100 - 1,600 1,300
Interfund receivable 1,049,109 - - - (1,049,109) - -
Inventory - at cost 8,792 - - - - 8,792 9,220
Total current assets 2,166,593 633,356 0 88,541 (1,049,109) 1,839,381 2,124,135
Noncurrent assets:
Capital assets:
Land 45,223 - - - - 45,223 45,223
Construction in process - - 1,343,167 - - 1,343,167 34,365
Buildings 1,305,172 - - - - 1,305,172 1,305,172
Equipment 728,156 - - - - 728,156 676,915
Infrastructure 8,613,661 - - - - 8,613,661 9,963,688
Total capital assets 10,692,212 0 1,343,167 0 0 12,035,379 12,025,363
Less: accumulated depreciation (5,087,210) - - - - (5,087,210) (6,137,067)
Total capital assets (net of
accumulated depreciation) 5,605,002 - 1,343,167 - - 6,948,169 5,888,296
Total noncurrent assets 5,605,002 0 1,343,167 0 0 6,948,169 5,888,296
Total assets 7,771,595 633,356 1,343,167 88,541 (1,049,109) 8,787,550 8,012,431
Liabilities :
Current liabilities:
Accounts payable 2,476 - 41,265 - - 43,741 23,616
Accrued salaries and withholdings payable 7,040 - 390 - - 7,430 15,003
Contracts payable - retained percentage - - 69,947 - - 69,947 -
Due to other governmental units 137,198 - - - - 137,198 127,479
Interfund payable - - 1,049,109 - (1,049,109) - -
Accrued interest payable - - - 3,111 - 3,111 3,676
Deposits - - - - - - 200
Bonds payable - current - - - 80,000 - 80,000 80,000
Total current liabilities 146,714 0 1,160,711 83,111 (1,049,109) 341,427 249,974
Noncurrent liabilities:
Bonds payable - noncurrent - - - 250,000 - 250,000 330,000
Total noncurrent liabilities 0 0 0 250,000 0 250,000 330,000
Total liabilities 146,714 0 1,160,711 333,111 (1,049,109) 591,427 579,974
Net position:
Net investment in capital assets 5,605,002 - 1,343,167 (330,000) - 6,618,169 5,478,296
Restricted for debt service - - - 87,906 - 87,906 88,894
Unrestricted 2,019,879 633,356 (1,160,711) (2,476) - 1,490,048 1,865,267
Total net position $7,624,881 $633,356 $182,456 ($244,570) $0 $8,196,123 $7,432,457
Total
146
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND Statement 37
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
Operating revenues:2020 2019
Charges for services:
Customer services $79,866 $ - $ - $ - $ - $79,866 $52,308
Penalties 157,542 - - - - 157,542 154,075
Charges for sales:
Water 3,446,792 - - - - 3,446,792 3,145,915
Meter 7,003 74,719 - - - 81,722 78,902
Total operating revenues 3,691,203 74,719 0 0 0 3,765,922 3,431,200
Operating expenses:
Cost of sales 1,616,685 - - - - 1,616,685 1,584,203
Distribution 886,750 - 3,690 - - 890,440 735,922
Administration 50,909 44,328 - - - 95,237 43,928
Depreciation 300,170 - - - - 300,170 296,023
Total operating expenses 2,854,514 44,328 3,690 0 0 2,902,532 2,660,076
Net income (loss) from operations 836,689 30,391 (3,690)0 0 863,390 771,124
Nonoperating revenues (expenses):
Investment income:
Interest and dividends - 6,900 - 400 - 7,300 10,800
Change in fair value - 2,100 - 100 - 2,200 5,900
Miscellaneous revenues (expenses)501 - 207 - - 708 611
Interest and fiscal charges - - - (7,932) - (7,932) (12,410)
Total nonoperating revenues (expenses)501 9,000 207 (7,432)0 2,276 4,901
Net income (loss) before transfers 837,190 39,391 (3,483) (7,432)0 865,666 776,025
Transfers
Transfers in 51,241 30,000 234,346 85,000 (400,587) - -
Transfers out (451,346) (51,241) - - 400,587 (102,000) (96,500)
Total transfers (400,105) (21,241) 234,346 85,000 0 (102,000) (96,500)
Change in net position 437,085 18,150 230,863 77,568 0 763,666 679,525
Net position - January 1 7,187,796 615,206 (48,407) (322,138) - 7,432,457 6,752,932
Net position - December 31 $7,624,881 $633,356 $182,456 ($244,570)$0 $8,196,123 $7,432,457
Total
147
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND Statement 38
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
2020 2019
Cash flows provided by (used in) operating activities:
Cash received from customers $3,690,082 $3,361,546
Cash paid to suppliers for goods and services (2,083,818)(2,002,128)
Cash payments to employees for services (425,818) (441,469)
Net cash flows provided by (used in) operating activities 1,180,446 917,949
Cash flows provided by (used in) noncapital financing activities:
Transfers out (102,000)(96,500)
Interfund payable (repaid to) advanced by other funds - (66,000)
Net cash flows provided by (used in) noncapital financing activities (102,000)(162,500)
Cash flows provided by (used in) capital and related financing activities:
Acquisition of capital assets (1,360,043)(46,313)
Principal payments - bonds (80,000)(120,000)
Interest and fiscal charges (8,497)(12,848)
Net cash flows provided by (used in) capital and related financing activities (1,448,540)(179,161)
Cash flows provided by (used in) investing activities:
Investment income:
Interest and dividends 7,000 13,200
Change in fair value 2,200 5,900
Net cash flows provided by (used in) investing activities 9,200 19,100
Net increase (decrease) in cash and cash equivalents (360,894)595,388
Cash and cash equivalents - January 1 1,319,126 723,738
Cash and cash equivalents - December 31 $958,232 $1,319,126
Reconciliation of operating income to net cash flows from operating activities:
Operating income $863,390 $771,124
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 300,170 296,023
Miscellaneous revenues 708 611
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in accounts receivable (76,268)(68,717)
(Increase) decrease in inventory, at cost 428 (937)
Increase (decrease) in accounts payable 20,125 (66,193)
Increase (decrease) in accrued salaries and withholdings payable (7,573)(1,610)
Increase (decrease) in contracts payable -retained percentage 69,947 -
Increase (decrease) in due to other governmental units 9,719 (9,852)
Increase (decrease) in deposits payable (200)(2,500)
Total adjustments 317,056 146,825
Net cash flows from operating activities $1,180,446 $917,949
148
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 39
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2020
With Comparative Totals For December 31, 2019
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Assets:2020 2019
Current assets:
Cash and cash equivalents $145,261 $322,939 $42,561 $59,150 $569,911 $1,231,226
Receivables:
Accounts (net of allowance for
uncollectibles)600,797 - - - 600,797 558,746
Interest - 900 1,000 - 1,900 1,800
Prepayments 103,380 - - - 103,380 100,538
Total current assets 849,438 323,839 43,561 59,150 1,275,988 1,892,310
Noncurrent assets:
Capital assets:
Land 36,586 - - - 36,586 36,586
Construction in progress - - 619,147 - 619,147 24,553
Buildings 403,659 - - - 403,659 403,659
Equipment 1,194,140 - - - 1,194,140 1,097,814
Infrastructure 6,677,171 - - - 6,677,171 6,677,171
Total capital assets 8,311,556 0 619,147 0 8,930,703 8,239,783
Less: accumulated depreciation (5,437,806) - - - (5,437,806) (5,280,647)
Net capital assets 2,873,750 0 619,147 0 3,492,897 2,959,136
Total noncurrent assets 2,873,750 0 619,147 0 3,492,897 2,959,136
Total assets 3,723,188 323,839 662,708 59,150 4,768,885 4,851,446
Liabilities:
Current liabilities:
Accounts payable 1,072 - - - 1,072 37,657
Accrued salaries and withholdings payable 3,187 - 63 - 3,250 13,140
Contracts payable - retained percentage - - 30,396 - 30,396 10,132
Accrued interest payable - - - 2,058 2,058 2,531
Bonds payable - current - - - 53,400 53,400 53,400
Total current liabilities 4,259 0 30,459 55,458 90,176 116,860
Noncurrent liabilities:
Bonds payable - noncurrent - - - 178,800 178,800 232,200
Total liabilities 4,259 0 30,459 234,258 268,976 349,060
Net position:
Net investment in capital assets 2,873,750 - 619,147 (232,200) 3,260,697 2,648,983
Restricted for debt service - - - 58,612 58,612 59,334
Unrestricted 845,179 323,839 13,102 (1,520) 1,180,600 1,794,069
Total net position $3,718,929 $323,839 $632,249 ($175,108) $4,499,909 $4,502,386
Total
149
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 40
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
For The Year Ended December 31, 2020
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
Operating revenues:2020 2019
Charges for services:
Sewer service charges $2,239,150 $ - $2,331 $ - $ - $2,241,481 $2,074,292
Total operating revenues 2,239,150 0 2,331 0 0 2,241,481 $2,074,292
Operating expenses:
Disposal 1,206,459 - - - - 1,206,459 1,121,217
Collection 725,813 - 138 - - 725,951 649,345
Administration 50,720 - - - - 50,720 43,940
Depreciation 165,698 - - - - 165,698 166,925
Total operating expenses 2,148,690 0 138 0 0 2,148,828 1,981,427
Net income (loss) from operations 90,460 0 2,193 0 0 92,653 92,865
Nonoperating revenues (expenses):
Investment income
Interest and dividends - 4,099 4,600 200 - 8,899 15,801
Change in fair value - 1,200 1,400 100 - 2,700 8,800
Interest and fiscal charges - - - (5,326) - (5,326) (6,464)
Miscellaneous 340 - 257 - - 597 268
Total nonoperating revenues (expenses)340 5,299 6,257 (5,026)0 6,870 18,405
Net income (loss) before transfers and capital
contributions 90,800 5,299 8,450 (5,026)0 99,523 111,270
Transfers and capital contributions:
Capital contribution - intergovernmental revenue - - - - - - 160,288
Transfers in 104,865 30,000 - 59,000 (193,865) - -
Transfers out (191,000) (104,865) - - 193,865 (102,000) (96,500)
Total transfers and capital contributions (86,135) (74,865)0 59,000 0 (102,000) 63,788
Change in net position 4,665 (69,566) 8,450 53,974 - (2,477) 175,058
Net position - January 1 3,714,264 393,405 623,799 (229,082) - 4,502,386 4,327,328
Net position - December 31 $3,718,929 $323,839 $632,249 ($175,108)$0 $4,499,909 $4,502,386
Total
With Comparative Totals For The Year Ended December 31, 2018
150
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 41
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
2020 2019
Cash flows provided by (used in) operating activities:
Cash received from customers $2,197,185 $2,026,949
Cash paid to suppliers for goods and services (1,669,259) (1,529,035)
Cash payments to employees for services (340,082) (250,308)
Net cash flows provided by (used in) operating activities 187,844 247,606
Cash flows provided by (used in) noncapital financing activities:
Transfers out (102,000) (96,500)
Cash flows provided by (used in) capital and related financing activities:
Acquisition of capital assets (699,459)(44,245)
Intergovernmental revenue - 160,288
Principal payments - bonds (53,400) (53,400)
Interest and fiscal charges (5,799) (6,938)
Net cash flows provided by (used in) capital and related financing activities (758,658)55,705
Cash flows provided by (used in) investing activities:
Investment income:
Interest and dividends 8,799 16,801
Change in fair value 2,700 8,800
Net cash flows provided by (used in) investing activities 11,499 25,601
Net increase (decrease) in cash and cash equivalents (661,315)232,412
Cash and cash equivalents - January 1 1,231,226 998,814
Cash and cash equivalents - December 31 $569,911 $1,231,226
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)$92,653 $92,865
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 165,698 166,925
Miscellaneous revenues 597 268
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in accounts receivable (42,051)(40,508)
(Increase) decrease in prepayments (2,842)(7,103)
Increase (decrease) in accounts payable (36,585)21,962
Increase (decrease) in accrued salaries and withholdings payable (9,890)3,065
Increase (decrease) in contracts payable -retained percentage 20,264 10,132
Total adjustments 95,191 154,741
Net cash flows from operating activities $187,844 $247,606
151
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND Statement 42
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2020
With Comparative Totals For December 31, 2019
2020 2019
Assets:
Current assets:
Cash and cash equivalents $1,746,270 $1,639,518
Receivables:
Accounts (net of allowance for uncollectibles) 584,168 575,074
Interest 3,100 2,700
Due from other governmental units 23,982 23,905
Total current assets 2,357,520 2,241,197
Noncurrent assets:
Capital assets:
Buildings 56,000 56,000
Equipment 112,893 112,893
Total capital assets 168,893 168,893
Less: accumulated depreciation (139,518) (137,018)
Total capital assets (net of accumulated depreciation) 29,375 31,875
Total noncurrent assets 29,375 31,875
Total assets 2,386,895 2,273,072
Liabilities:
Current liabilities:
Accounts payable 153,444 138,773
Accrued salaries and withholdings payable 1,800 4,274
Total current liabilities 155,244 143,047
Net position:
Net investments in capital assets 29,375 31,875
Unrestricted 2,202,276 2,098,150
Total net position $2,231,651 $2,130,025
152
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND Statement 43
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
2020 2019
Operating revenues:
Refuse service charges $2,103,590 $2,068,509
Operating expenses:
Collection and disposal 1,766,657 1,659,598
Administration 103,076 77,474
Recycling 118,170 110,324
Hazardous waste 11,973 10,321
Depreciation 2,500 2,500
Miscellaneous 27,483 21,872
Total operating expenses 2,029,859 1,882,089
Net income (loss) from operations 73,731 186,420
Nonoperating revenues:
Investment income
Interest and dividends 14,100 22,300
Change in fair value 4,300 12,400
Intergovernmental 103,695 102,190
Total nonoperating revenues 122,095 136,890
Net income (loss) before transfers 195,826 323,310
Transfers out (94,200) (83,800)
Total transfers (94,200) (83,800)
Change in net position 101,626 239,510
Net position - January 1 2,130,025 1,890,515
Net position - December 31 $2,231,651 $2,130,025
153
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND Statement 44
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
2020 2019
Cash flows provided by (used in) operating activities:
Cash received from customers $2,094,419 $2,026,312
Cash paid to suppliers for goods and services (1,875,505) (1,770,442)
Cash payments to employees for services (139,657)(114,022)
Net cash flows provided by (used in) operating activities 79,257 141,848
Cash flows provided by (used in) noncapital financing activities:
Transfers out (94,200)(83,800)
Intergovernmental 103,695 102,190
Net cash flows provided by (used in) noncapital financing activities 9,495 18,390
Cash flows provided by (used in) investing activities:
Investment income:
Interest and dividends 13,700 23,500
Change in fair value 4,300 12,400
Net cash flows provided by (used in) investing activities 18,000 35,900
Net increase (decrease) in cash and cash equivalents 106,752 196,138
Cash and cash equivalents - January 1 1,639,518 1,443,380
Cash and cash equivalents - December 31 $1,746,270 $1,639,518
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income $73,731 $186,420
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 2,500 2,500
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in accounts receivable (9,094)(24,725)
(Increase) decrease in due from other governmental units (77)(17,472)
Increase (decrease) in accounts payable 14,671 (5,037)
Increase (decrease) in accrued salaries and withholdings payable (2,474)162
Total adjustments 5,526 (44,572)
Net cash flows from operating activities $79,257 $141,848
154
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 45
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2020
With Comparative Totals For December 31, 2019
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
Assets:2020 2019
Current assets:
Cash and cash equivalents $423,970 $16,352 $ - $62,433 $ - $502,755 $507,301
Receivables:
Accounts (net of allowance for
uncollectibles)142,485 - - - - 142,485 126,419
Interest 1,300 - - 100 - 1,400 900
Due from other governmental units - - - - - - 33,745
Interfund receivable 36,946 - - - (36,946) - -
Total current assets 604,701 16,352 0 62,533 (36,946) 646,640 668,365
Noncurrent assets:
Capital assets:
Land 260,690 - - - - 260,690 260,690
Equipment 402,607 - - - - 402,607 398,758
Infrastructure 2,667,144 - - - - 2,667,144 2,667,144
Total capital assets 3,330,441 0 0 0 0 3,330,441 3,326,592
Less: accumulated depreciation (1,461,124) - - - - (1,461,124) (1,348,687)
Net capital assets 1,869,317 0 0 0 0 1,869,317 1,977,905
Total noncurrent assets 1,869,317 0 0 0 0 1,869,317 1,977,905
Total assets 2,474,018 16,352 0 62,533 (36,946) 2,515,957 2,646,270
Liabilities:
Current liabilities:
Accounts payable 208 - 6,566 - - 6,774 31,925
Accrued salaries and withholdings payable 1,430 - - - - 1,430 4,083
Contracts payable - retained percentage - - 17,388 - - 17,388 19,051
Interfund payable - - 36,946 - (36,946) - -
Accrued interest payable - - - 2,374 - 2,374 2,678
Bonds payable - current - - - 56,600 - 56,600 56,600
Total current liabilities 1,638 0 60,900 58,974 (36,946) 84,566 114,337
Noncurrent liabilities:
Bonds payable - noncurrent - - - 181,200 - 181,200 237,800
Total noncurrent liabilities 0 0 0 181,200 0 181,200 237,800
Total liabilities 1,638 0 60,900 240,174 (36,946) 265,766 352,137
Net position:
Net investment in capital assets 1,869,317 - - (237,800) - 1,631,517 1,683,505
Restricted for debt service - - - 62,494 - 62,494 63,131
Unrestricted 603,063 16,352 (60,900) (2,335) - 556,180 547,497
Total net position $2,472,380 $16,352 ($60,900) ($177,641)$0 $2,250,191 $2,294,133
Total
155
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 46
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
2020 2019
Operating revenues:
Storm sewer service charges $522,652 $ - $ - $ - $ - $522,652 $480,515
Operating expenses:
Collection 352,232 - 103,186 - - 455,418 685,263
Administration 1,041 - - - - 1,041 1,128
Depreciation 112,437 - - - - 112,437 116,472
Total operating expenses 465,710 0 103,186 0 0 568,896 802,863
Net income (loss) from operations 56,942 0 (103,186)0 0 (46,244) (322,348)
Nonoperating revenues (expenses):
Investment income
Interest and dividends 5,800 100 - 200 - 6,100 7,401
Change in fair value 1,800 - - 100 - 1,900 4,100
Interest and fiscal charges - - - (6,057) - (6,057) (7,770)
Miscellaneous revenue 359 - - - - 359 352
Total nonoperating
revenues (expenses)7,959 100 0 (5,757)0 2,302 4,083
Net income (loss) before transfers
and capital contributions 64,901 100 (103,186) (5,757)0 (43,942) (318,265)
Transfers and capital contributions:
Capital contribution -
intergovernmental revenue - - - - - - 350,253
Transfers in 3,849 10,000 102,086 61,000 (176,935) - -
Transfers out (173,086) (3,849) - - 176,935 - -
Total transfers and
capital contributions (169,237) 6,151 102,086 61,000 0 0 350,253
Change in net position (104,336) 6,251 (1,100) 55,243 0 (43,942) 31,988
Net position - January 1 2,576,716 10,101 (59,800) (232,884) - 2,294,133 2,262,145
Net position - December 31 $2,472,380 $16,352 ($60,900) ($177,641)$0 $2,250,191 $2,294,133
Total
156
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 47
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
2020 2019
Cash flows provided by (used in) operating activities:
Cash received from customers $540,690 $437,267
Cash paid to suppliers for goods and services (335,947) (490,611)
Cash payments to employees for services (149,979) (145,237)
Net cash flows provided by (used in) operating activities 54,764 (198,581)
Cash flows provided by (used in) capital and related financing activities:
Acquisition of capital assets (3,849)40,987
Intergovernmental revenue - 350,253
Principal payments - bonds (56,600)(73,600)
Interest and fiscal charges (6,361)(7,527)
Net cash flows provided by (used in) capital and related financing activities (66,810)310,113
Cash flows provided by (used in) investing activities:
Investment income:
Interest and dividends 5,600 8,001
Change in fair value 1,900 4,100
Net cash flows provided by (used in) investing activities 7,500 12,101
Net increase (decrease) in cash and cash equivalents (4,546)123,633
Cash and cash equivalents - January 1 507,301 383,668
Cash and cash equivalents - December 31 $502,755 $507,301
Reconciliation of operating income to net cash flows from operating activities:
Operating income ($46,244)($322,348)
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 112,437 116,472
Miscellaneous revenue 359 352
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in accounts receivable (16,066)(9,855)
(Increase) decrease in due from other governmental units 33,745 (33,745)
Increase (decrease) in accounts payable (25,151)30,681
Increase (decrease) in accrued salaries and withholdings payable (2,653)811
Increase (decrease) compensated absences payable (1,663)19,051
Total adjustments 101,008 123,767
Net cash flows from operating activities $54,764 ($198,581)
157
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158
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND Statement 48
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2020
With Comparative Totals For December 31, 2019
Operating Debt Service
Account Account 2020 2019
Assets:
Current assets:
Cash and cash equivalents $1,341,163 $306,446 $1,647,609 $1,776,204
Receivables:
Accounts - - - 109
Interest 2,500 200 2,700 2,300
Due from other governmental units 388 - 388 3,133
Prepayments 7,387 - 7,387 -
Inventory - at cost 2,278,746 - 2,278,746 2,341,164
Total current assets 3,630,184 306,646 3,936,830 4,122,910
Noncurrent assets:
Capital assets:
Land 2,006,714 - 2,006,714 2,006,714
Construction in progress 8,287 - 8,287 9,711
Buildings 3,909,062 - 3,909,062 3,909,062
Equipment 450,353 - 450,353 431,020
Total capital assets 6,374,416 0 6,374,416 6,356,507
Less: Accumulated depreciation (1,973,642) - (1,973,642) (1,839,382)
Net capital assets 4,400,774 0 4,400,774 4,517,125
Total noncurrent assets 4,400,774 0 4,400,774 4,517,125
Total assets 8,030,958 306,646 8,337,604 8,640,035
Liabilities:
Current liabilities:
Accounts payable 214,205 - 214,205 355,742
Accrued salaries and withholdings payable 15,506 - 15,506 50,426
Due to other governmental units 86,439 - 86,439 102,581
Accrued interest payable - 24,644 24,644 26,765
Bonds payable - current - 260,000 260,000 255,000
Total current liabilities 316,150 284,644 600,794 790,514
Noncurrent liabilities:
Bonds payable - noncurrent - 2,360,901 2,360,901 2,630,682
Total liabilities 316,150 2,645,545 2,961,695 3,421,196
Net position:
Net investment in capital assets 4,400,774 (2,620,901) 1,779,873 1,631,443
Restricted for debt service - 307,865 307,865 305,902
Unrestricted 3,314,034 (25,863) 3,288,171 3,281,494
Total net position $7,714,808 ($2,338,899) $5,375,909 $5,218,839
Total
159
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
Top Heights
Top Valu Valu II Liquor
Operating revenues:
Charges for sales:
Liquor $1,784,434 $926,121 $340,104
Beer 1,711,709 1,092,238 268,396
Wine 669,756 397,092 41,877
Other 173,300 112,763 67,593
Total operating revenues 4,339,199 2,528,214 717,970
Operating expenses:
Cost of goods sold 3,232,383 1,882,071 534,871
Operating expense 758,734 591,591 170,204
Depreciation 73,292 59,006 1,963
Total operating expenses 4,064,409 2,532,668 707,038
Net income from operations $274,790 ($4,454) $10,932
Nonoperating revenues (expenses):
Investment income:
Interest and dividends
Change in fair value
Intergovernmental
Interest and fiscal charges
Miscellaneous expense
Total nonoperating revenues (expenses)
Net income (loss) before transfers
Transfers:
Transfers in
Transfers out
Total transfers
Change in net position
Net position - January 1
Net position - December 31
Operating Accounts
160
Statement 49
Total Debt
Operating Service Intrafund
Accounts Account Eliminations 2020 2019
$3,050,659 $ - $ - $3,050,659 $3,474,605
3,072,343 - - 3,072,343 3,664,118
1,108,725 - - 1,108,725 1,152,927
353,656 - - 353,656 623,228
7,585,383 0 0 7,585,383 8,914,878
5,649,325 - - 5,649,325 6,686,021
1,520,529 - - 1,520,529 1,585,568
134,261 - - 134,261 139,489
7,304,115 0 0 7,304,115 8,411,078
281,268 0 0 281,268 503,800
11,300 1,100 - 12,400 19,800
3,400 300 - 3,700 11,000
4,091 - - 4,091 4,030
- (50,989) - (50,989)(59,260)
(2,500) - - (2,500) -
16,291 (49,589)0 (33,298)(24,430)
297,559 (49,589)0 247,970 479,370
- 319,000 (319,000) - -
(409,900) - 319,000 (90,900)(145,400)
(409,900)319,000 0 (90,900)(145,400)
(112,341)269,411 0 157,070 333,970
7,827,149 (2,608,310)0 5,218,839 4,884,869
$7,714,808 ($2,338,899)$0 $5,375,909 $5,218,839
Total
161
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND Statement 50
SUBCOMBINING SCHEDULE OF CASH FLOWS Page 1 of 2
For Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
2020 2019
Cash flows provided by (used in) operating activities:
Cash received from customers $7,580,850 $8,917,084
Cash paid to suppliers for goods and services (6,202,662) (7,334,657)
Cash payments to employees for services (1,099,873) (1,143,765)
Net cash flows provided by (used in) operating activities 278,315 438,662
Cash flows provided by (used in) noncapital financing activities:
Transfers out (90,900) (145,400)
Intergovernmental 4,091 4,030
Net cash flows provided by (used in) noncapital financing activities (86,809) (141,370)
Cash flows provided by (used in) capital and related financing activities:
Acquisition of capital assets (17,909) (12,810)
Principal payments - bonds (255,000) (245,000)
Interest and fiscal charges - including capitalized interest (62,892) (67,891)
Net cash flows provided by (used in) capital and related financing activities (335,801) (325,701)
Cash flows provided by (used in) investing activities:
Investment income:
Interest and dividends 12,000 20,600
Change in fair value 3,700 11,000
Net cash flows provided by (used in) investing activities 15,700 31,600
Net increase (decrease) in cash and cash equivalents (128,595) 3,191
Cash and cash equivalents - January 1 1,776,204 1,773,013
Cash and cash equivalents - December 31 $1,647,609 $1,776,204
162
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND Statement 50
SUBCOMBINING SCHEDULE OF CASH FLOWS Page 2 of 2
For Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
2020 2019
Reconciliation of operating income to net cash flows from operating activities:
Operating income $281,268 $503,800
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 134,261 139,489
Miscellaneous expense (2,500) -
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in accounts receivable 109 2,991
(Increase) decrease in due from other governmental units 2,745 (785)
(Increase) decrease in prepayments (7,387) -
(Increase) decrease in inventory, at cost 62,418 (172,860)
Increase (decrease) in accounts payable (141,537) (43,079)
Increase (decrease) in accrued salaries and withholdings payable (34,920)3,868
Increase (decrease) in due to other governmental units (16,142)5,238
Total adjustments (2,953) (65,138)
Net cash flows from operating activities $278,315 $438,662
163
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164
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.
Municipal Service Center Fund
Central Garage - 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.
Building Maintenance – used to account for the costs of staff charged with maintaining
City facilities. All costs are recorded in this fund and finance by transfers from user
departments.
Information Systems Fund – used to account for the costs associated with information systems
within the City. All costs are recorded in the fund and are financed by transfers from user
departments.
Risk Management Fund – used to account for certain costs of the City’s risk management services
and to build a reserve for catastrophic losses. All costs for premiums, claims and claims
administration are recorded in the fund and allocated to user funds based on a percentage risk
factor.
Employee Benefits Fund – used to account for long-term obligations for compensated absences,
pensions, and other post-employment benefits earned by employees’ services.
165
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS Statement 51
COMBINING STATEMENT OF NET POSITION
December 31, 2020
Municipal
Service
Center
Information
Systems
Risk
Management
Employee
Benefits Fund
Total Internal
Service Funds
Assets:
Current assets:
Cash and cash equivalents $1,025,495 $541,945 $1,338,534 $1,184,462 $4,090,436
Due from other governmental units 157 - - - 157
Interest receivable 2,400 1,300 2,900 - 6,600
Prepayments - 25,290 61,661 - 86,951
Inventory - at cost 48,265 17,789 - - 66,054
Total current assets 1,076,317 586,324 1,403,095 1,184,462 4,250,198
Noncurrent assets:
Capital assets:
Land 15,779 - - - 15,779
Buildings 1,978,957 - - - 1,978,957
Equipment 285,183 320,052 - - 605,235
Total capital assets 2,279,919 320,052 0 0 2,599,971
Less: accumulated depreciation (1,330,565) (278,503) - - (1,609,068)
Net capital assets 949,354 41,549 0 0 990,903
Total noncurrent assets 949,354 41,549 0 0 990,903
Total assets 2,025,671 627,873 1,403,095 1,184,462 5,241,101
Deferred outflows of resources:
Related to pensions and OPEB - - - 2,660,937 2,660,937
Liabilities:
Current liabilities:
Accounts payable 26,802 10,565 6,813 - 44,180
Accrued salaries and withholdings payable 6,086 4,640 - - 10,726
Unearned revenue 9,437 - - - 9,437
Compensated absences payable - current - - - 106,600 106,600
Total current liabilities 42,325 15,205 6,813 106,600 170,943
Noncurrent liabilities:
Compensated absences payable - noncurrent - - - 1,077,862 1,077,862
Other postemployment benefits payable - - - 1,527,677 1,527,677
Net pension liability - - - 9,031,244 9,031,244
Total noncurrent liabilities 0 0 0 11,636,783 11,636,783
Total liabilities 42,325 15,205 6,813 11,743,383 11,807,726
Deferred inflows of resources:
Related to pensions and OPEB - - - 3,271,948 3,271,948
Net position:
Net investments in capital assets 949,354 41,549 - - 990,903
Unrestricted 1,033,992 571,119 1,396,282 (11,169,932) (8,168,539)
Total net position $1,983,346 $612,668 $1,396,282 ($11,169,932) ($7,177,636)
166
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS Statement 52
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2020
Municipal
Service Center
Information
Systems
Risk
Management
Employee Benefits
Fund
Total Internal
Service Funds
Operating revenues:
Charges for services:
Services to departments $416,236 $405,000 $661,560 $2,117,304 $3,600,100
Use of space 360,610 - - - 360,610
Recovery of damages - - 87,167 - 87,167
Charges for sales:
Sales of motor fuel 105,270 - - - 105,270
Total operating revenues 882,116 405,000 748,727 2,117,304 4,153,147
Operating expenses:
Cost of services and space 831,376 434,088 682,596 1,688,812 3,636,872
Depreciation 68,322 10,376 - - 78,698
Total operating expenses 899,698 444,464 682,596 1,688,812 3,715,570
Net income (loss) from operations (17,582) (39,464) 66,131 428,492 437,577
Nonoperating revenues (expenses):
Investment income
Interest and dividends 10,800 6,300 13,400 - 30,500
Change in fair value 3,300 1,900 4,100 - 9,300
Intergovernmental - - - 67,754 67,754
Total nonoperating revenues (expenses)14,100 8,200 17,500 67,754 107,554
Net income (loss) before transfers (3,482) (31,264) 83,631 496,246 545,131
Transfers:
Transfers in - 12,000 - - 12,000
Total transfers 0 12,000 0 0 12,000
Change in net position (3,482) (19,264) 83,631 496,246 557,131
Net position - January 1 1,986,828 631,932 1,312,651 (11,666,178) (7,734,767)
Net position - December 31 $1,983,346 $612,668 $1,396,282 ($11,169,932) ($7,177,636)
167
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS Statement 53
COMBINING STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2020
Municipal Service
Center
Information
Systems
Risk
Management
Employee
Benefits Fund
Total Internal
Service Funds
Cash flows provided by (used in) operating activities:
Cash received from interfund goods and services provided $882,116 $405,000 $661,560 $2,893,279 $4,841,955
Cash received for damages - - 87,167 - 87,167
Cash paid to suppliers for goods and services (366,847) (140,346) (676,027) (2,052,844) (3,236,064)
Cash payments to employees for services (489,898) (340,610) - (889,500) (1,720,008)
Net cash flows provided by (used in) operating activities 25,371 (75,956) 72,700 (49,065) (26,950)
Cash flows provided by (used in) noncapital financing activities:
Transfers in - 12,000 - - 12,000
Intergovernmental - - - 67,754 67,754
Increases in other postemployment benefits payable - - - 42,065 42,065
Net cash flows provided by (used in) noncapital financing activities 0 12,000 0 109,819 121,819
Cash flows provided by (used in) capital and related financing activities:
Acquisition of capital assets (11,416) (17,470) - - (28,886)
Cash flows provided by (used in) investing activities:
Investment income:
Interest and dividends 10,400 6,200 12,800 - 29,400
Change in fair value 3,300 1,900 4,100 - 9,300
Net cash flows provided by (used in) investing activities 13,700 8,100 16,900 0 38,700
Net increase (decrease) in cash and cash equivalents 27,655 (73,326) 89,600 60,754 104,683
Cash and cash equivalents - January 1 997,840 615,271 1,248,934 1,123,708 3,985,753
Cash and cash equivalents - December 31 $1,025,495 $541,945 $1,338,534 $1,184,462 $4,090,436
Reconciliation of operating income (loss) to
net cash flows from operating activities:
Operating income (loss) ($17,582) ($39,464) $66,131 $428,492 $437,577
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 68,322 10,376 - - 78,698
Changes in assets and liabilities:
(Increase) decrease in prepayments - (10,097) 1,756 - (8,341)
(Increase) decrease in inventory, at cost (7,866) - - (7,866)
(Increase) decrease in due from other governmental units 229 - - - 229
(Increase) decrease in deferred pension outflows - (17,039) - 1,104,181 1,087,142
Increase (decrease) in accounts payable (5,532) (10,881) 4,813 - (11,600)
Increase (decrease) in accrued
salaries and withholdings payable (12,475)(8,851) - - (21,326)
Increase (decrease) in deferred revenue 275 - - - 275
Increase (decrease) in compensated absences - - - 60,754 60,754
Increase (decrease) in net pension liability - - - 1,073,148 1,073,148
Increase (decrease) in deferred inflows of resources - - - (2,715,640) (2,715,640)
Total adjustments 42,953 (36,492) 6,569 (477,557) (464,527)
Net cash flows provided by (used in) operating activities $25,371 ($75,956) $72,700 ($49,065) ($26,950)
168
CITY OF COLUMBIA HEIGHTS, MINNESOTA
MUNICIPAL SERVICE CENTER Statement 54
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2020
With Comparative Totals For December 31, 2019
Central Capital Building
Garage Equipment Maintenance
Operating Replacement Operating
Account Account Account 2020 2019
Assets:
Current assets:
Cash and cash equivalents $912,178 $25,774 $87,543 $1,025,495 $997,840
Due from other governmental units 157 - - 157 386
Interest receivable 2,100 100 200 2,400 2,000
Inventory - at cost 48,265 - - 48,265 40,399
Total current assets 962,700 25,874 87,743 1,076,317 1,040,625
Noncurrent assets:
Capital assets:
Land 15,779 - - 15,779 15,779
Buildings 1,978,957 - - 1,978,957 1,978,957
Equipment 285,183 - - 285,183 273,767
Total capital assets 2,279,919 0 0 2,279,919 2,268,503
Less: Accumulated depreciation (1,330,565) - - (1,330,565) (1,262,243)
Net capital assets 949,354 0 0 949,354 1,006,260
Total noncurrent assets 949,354 0 0 949,354 1,006,260
Total assets 1,912,054 25,874 87,743 2,025,671 2,046,885
Liabilities:
Current liabilities:
Accounts payable 26,750 - 52 26,802 32,334
Accrued salaries and withholdings payable 3,294 - 2,792 6,086 18,561
Unearned revenue 9,437 - - 9,437 9,162
Total current liabilities 39,481 0 2,844 42,325 60,057
Net position:
Net investments in capital assets 949,354 - - 949,354 1,006,260
Unrestricted 923,219 25,874 84,899 1,033,992 980,568
Total net position $1,872,573 $25,874 $84,899 $1,983,346 $1,986,828
Total
169
CITY OF COLUMBIA HEIGHTS, MINNESOTA
MUNICIPAL SERVICE CENTER Statement 55
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
Central Capital Building
Garage Equipment Maintenance
Operating Replacement Operating Intrafund
Account Account Account Eliminations 2020 2019
Operating revenues:
Charges for services:
Services to departments $189,236 $ - $227,000 $ - $416,236 $407,331
Use of space 360,610 - - - 360,610 351,227
Charges for sales:
Sales of motor fuel 105,270 - - - 105,270 118,400
Total operating revenues 655,116 0 227,000 0 882,116 876,958
Operating expenses:
Cost of services and space 607,525 - 223,851 - 831,376 790,067
Depreciation 68,322 - - - 68,322 67,517
Total operating expenses 675,847 0 223,851 0 899,698 857,584
Net income (loss) from operations (20,731) - 3,149 - (17,582) 19,374
Nonoperating revenues:
Investment income:
Interest and dividends 9,500 300 1,000 - 10,800 15,600
Change in fair value 2,900 100 300 - 3,300 8,600
Total nonoperating revenues 12,400 400 1,300 0 14,100 24,200
Net income (loss) before transfers (8,331)400 4,449 0 (3,482) 43,574
Transfers in - 4,000 - (4,000) - -
Transfers out (4,000) - - 4,000 - -
Total transfers (4,000) 4,000 0 0 0 0
Change in net position (12,331) 4,400 4,449 - (3,482) 43,574
Net position - January 1 1,884,904 21,474 80,450 0 1,986,828 1,943,254
Net position - December 31 $1,872,573 $25,874 $84,899 $0 $1,983,346 $1,986,828
Total
170
CITY OF COLUMBIA HEIGHTS, MINNESOTA
MUNICIPAL SERVICE CENTER Statement 56
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
2020 2019
Cash flows provided by (used in) operating activities:
Cash received from interfund goods & services provided $882,116 $876,958
Cash paid to suppliers for goods and services (366,847) (356,170)
Cash payments to employees for services (489,898) (425,101)
Net cash flows provided by (used in) operating activities 25,371 95,687
Cash flows provided by (used in) capital and related financing activities:
Acquisition and construction of capital assets (11,416)(23,257)
Proceeds from the sale of assets - -
Net cash flows provided by (used in) capital and related financing activities (11,416)(23,257)
Cash flows provided by (used in) investing activities:
Investment income:
Interest and dividends 10,400 16,800
Change in fair value 3,300 8,600
Net cash flows provided by (used in) investing activities 13,700 25,400
Net increase (decrease) in cash and cash equivalents 27,655 97,830
Cash and cash equivalents - January 1 997,840 900,010
Cash and cash equivalents - December 31 $1,025,495 $997,840
Reconciliation of operating income to net cash flows from operating activities:
Operating income (loss) ($17,582)$19,374
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 68,322 67,517
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in inventory, at cost (7,866)11,393
(Increase) decrease in due from other governmental units 229 1,963
Increase (decrease) in accounts payable (5,532)(7,024)
Increase (decrease) in accrued salaries and withholdings payable (12,475)2,198
Increase (decrease) in unearned revenue 275 266
Total adjustments 42,953 76,313
Net cash flows from operating activities $25,371 $95,687
171
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND Statement 57
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2020
With Comparative Totals For December 31, 2019
Capital
Equipment
Operating Replacement
Account Account 2020 2019
Assets:
Current assets:
Cash and cash equivalents $263,918 $278,027 $541,945 $615,271
Interest receivable 600 700 1,300 1,200
Prepayments 25,290 - 25,290 15,193
Inventory - at cost 17,789 - 17,789 750
Total current assets 307,597 278,727 586,324 632,414
Noncurrent assets:
Capital assets:
Equipment 320,052 - 320,052 302,583
Less: accumulated depreciation (278,503) - (278,503) (268,128)
Net capital assets 41,549 0 41,549 34,455
Total noncurrent assets 41,549 0 41,549 34,455
Total assets 349,146 278,727 627,873 666,869
Liabilities:
Current liabilities:
Accounts payable 9,851 714 10,565 21,446
Accrued salaries and withholdings payable 4,640 - 4,640 13,491
Total current liabilities 14,491 714 15,205 34,937
Net position:
Net investment in capital assets 41,549 - 41,549 34,455
Unrestricted 293,106 278,013 571,119 597,477
Total net position $334,655 $278,013 $612,668 $631,932
Total
172
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND Statement 58
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
Capital
Equipment
Operating Replacement Intrafund
Account Account Eliminations 2020 2019
Operating revenues:
Charges for services $405,000 $ - $ - $405,000 $385,000
Total operating revenues 405,000 0 0 405,000 385,000
Operating expenses:
Cost of services 389,702 44,386 - 434,088 387,210
Depreciation 10,376 - - 10,376 10,085
Total operating expenses 400,078 44,386 0 444,464 397,295
Net income (loss) from operations 4,922 (44,386)0 (39,464) (12,295)
Nonoperating revenues:
Investment income
Interest and dividends 2,900 3,400 - 6,300 9,600
Change in fair value 900 1,000 - 1,900 5,300
Total nonoperating revenues 3,800 4,400 0 8,200 14,900
Net income (loss) before transfers 8,722 (39,986)0 (31,264) 2,605
Transfers:
Transfers in 29,469 - (17,469) 12,000 -
Transfers out - (17,469) 17,469 - (24,388)
Total transfers 29,469 (17,469)0 12,000 (24,388)
Change in net position 38,191 (57,455)0 (19,264) (21,783)
Net position - January 1 296,464 335,468 - 631,932 653,715
Net position - December 31 $334,655 $278,013 $0 $612,668 $631,932
Total
173
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND Statement 59
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
2020 2019
Cash flows provided by (used in) operating activities:
Cash received from interfund goods & services provided $405,000 $385,000
Cash paid to suppliers for goods and services (140,346) (60,234)
Cash payments to employees for services (340,610) (314,204)
Net cash flows provided by (used in) operating activities (75,956)10,562
Cash flows provided by (used in) noncapital financing activities:
Transfers in 12,000 -
Transfers out - (24,388)
Net cash flows provided by (used in) noncapital financing activities 12,000 (24,388)
Cash flows provided by (used in) capital and related financing activities:
Acquisition of capital assets (17,470) -
Cash flows provided by (used in) investing activities:
Investment income:
Interest and dividends 6,200 10,500
Change in fair value 1,900 5,300
Net cash flows provided by (used in) investing activities 8,100 15,800
Net increase (decrease) in cash and cash equivalents (73,326)1,974
Cash and cash equivalents - January 1 615,271 613,297
Cash and cash equivalents - December 31 $541,945 $615,271
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)($39,464) ($12,295)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 10,376 10,085
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in prepayments (10,097)(5,228)
(Increase) decrease in deferred pension outflows (17,039)(750)
Increase (decrease) in accounts payable (10,881)17,788
Increase (decrease) in accrued salaries and withholdings payable (8,851)962
Total adjustments (36,492)22,857
Net cash flows from operating activities ($75,956) $10,562
174
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RISK MANAGEMENT FUND Statement 60
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2020
With Comparative Totals For December 31, 2019
2020 2019
Assets:
Current assets:
Cash and cash equivalents $1,338,534 $1,248,934
Interest receivable 2,900 2,300
Prepayments 61,661 63,417
Total assets 1,403,095 1,314,651
Liabilities:
Current liabilities:
Accounts payable 6,813 2,000
Total current liabilities 6,813 2,000
Net position:
Unrestricted 1,396,282 1,312,651
Total net position $1,396,282 $1,312,651
175
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RISK MANAGEMENT FUND Statement 61
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
2020 2019
Operating revenues:
Insurance allocation $661,560 $570,894
Recovery of damages 87,167 18,330
Total operating revenues 748,727 589,224
Operating expenses:
Cost of services:
Premiums 607,390 554,423
Claims 75,206 26,873
Total operating expenses 682,596 581,296
Net income (loss) from operations 66,131 7,928
Nonoperating revenues:
Investment income
Interest and dividends 13,400 19,600
Change in fair value 4,100 10,900
Total nonoperating revenues 17,500 30,500
Change in net position 83,631 38,428
Net position - January 1 1,312,651 1,274,223
Net position - December 31 $1,396,282 $1,312,651
176
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RISK MANAGEMENT FUND Statement 62
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
2020 2019
Cash flows provided by (used in) operating activities:
Cash received from interfund services provided $661,560 $570,894
Cash received for damages 87,167 18,330
Cash paid to suppliers for goods and services (676,027) (580,350)
Net cash flows provided by (used in) operating activities 72,700 8,874
Cash flows provided by (used in) investing activities:
Investment income:
Interest and dividends 12,800 21,100
Change in fair value 4,100 10,900
Net cash flows provided by (used in) investing activities 16,900 32,000
Net increase (decrease) in cash and cash equivalents 89,600 40,874
Cash and cash equivalents - January 1 1,248,934 1,208,060
Cash and cash equivalents - December 31 $1,338,534 $1,248,934
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)$66,131 $7,928
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Changes in assets and liabilities:
(Increase) decrease in prepayments 1,756 (1,054)
Increase (decrease) in accounts payable 4,813 2,000
Total adjustments 6,569 946
Net cash flows from operating activities $72,700 $8,874
177
CITY OF COLUMBIA HEIGHTS, MINNESOTA
EMPLOYEE BENEFITS FUND Statement 63
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2020
With Comparative Totals For December 31, 2019
Compensated Other Post
Absences Pension Emp Benefits
Account Account Account 2020 2019
Assets:
Current assets:
Cash and cash equivalents $1,184,462 $ - $ - $1,184,462 $1,123,708
Total assets 1,184,462 0 0 1,184,462 1,123,708
Deferred outflows of resources:
Related to pensions and OPEB - 2,455,533 205,404 2,660,937 3,719,131
Liabilities:
Current liabilities:
Compensated absences payable - current 106,600 - - 106,600 110,900
Total current liabilities 106,600 0 0 106,600 110,900
Noncurrent liabilities:
Compensated absences payable - noncurrent 1,077,862 - - 1,077,862 1,012,808
Other postemployment benefits payable - - 1,527,677 1,527,677 1,420,635
Related to pensions - 9,031,244 - 9,031,244 7,958,096
Total noncurrent liabilities 1,077,862 9,031,244 1,527,677 11,636,783 10,391,539
Total liabilities 1,184,462 9,031,244 1,527,677 11,743,383 10,502,439
Deferred inflows of resources:
Related to pensions and OPEB - 3,189,208 82,740 3,271,948 6,006,578
Net position:
Unrestricted - (9,764,919)(1,405,013)(11,169,932)(11,666,178)
Total net position $0 ($9,764,919)($1,405,013)($11,169,932)($11,666,178)
Total
178
CITY OF COLUMBIA HEIGHTS, MINNESOTA
EMPLOYEE BENEFITS FUND Statement 64
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
Compensated Other Post
Absences Pension Emp Benefits
Account Account Account 2020 2019
Operating revenues:
Charges for services $950,254 $1,115,064 $51,986 $2,117,304 $1,539,064
Operating expenses:
Cost of services 950,254 644,507 94,051 1,688,812 1,565,482
Net income (loss) from operations - 470,557 (42,065)428,492 (26,418)
Nonoperating revenues:
Intergovernmental - 67,754 - 67,754 51,403
Change in net position - 538,311 (42,065)496,246 24,985
Net position - January 1 - (10,303,230) (1,362,948) (11,666,178) (11,691,163)
Net position - December 31 $0 ($9,764,919) ($1,405,013) ($11,169,932) ($11,666,178)
Total
179
CITY OF COLUMBIA HEIGHTS, MINNESOTA
EMPLOYEE BENEFITS FUND Statement 65
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
Compensated Other Post
Absences Pension Emp Benefits
Account Account Account 2020 2019
Cash flows provided by (used in) operating activities:
Cash received from interfund services provided $950,254 $1,891,039 $51,986 $2,893,279 $2,248,296
Cash paid to suppliers for goods and services - (1,958,793) (94,051) (2,052,844) (1,848,642)
Cash payments to employees for services (889,500) - - (889,500) (716,574)
Net cash flows provided by (used in) operating activities 60,754 (67,754) (42,065) (49,065) (316,920)
Cash flows provided by (used in) noncapital financing activities:
Intergovernmental - 67,754 - 67,754 51,403
Increases in other postemployment benefits payable - - 42,065 42,065 36,047
Net cash flows provided by (used in) noncapital financing activitie 0 67,754 42,065 109,819 87,450
Net increase (decrease) in cash and cash equivalents 60,754 - - 60,754 (229,470)
Cash and cash equivalents - January 1 1,123,708 - - 1,123,708 1,353,178
Cash and cash equivalents - December 31 $1,184,462 $0 $0 $1,184,462 $1,123,708
Reconciliation of operating income (loss) to net cash flows
from operating activities:
Operating income (loss)$ - $470,557 ($42,065) $428,492 ($26,418)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
(Increase) decrease in deferred pension outflows - 1,104,181 - 1,104,181 2,360,646
Increase (decrease) in compensated absences 60,754 - - 60,754 (229,470)
Increase (decrease) in net pension liability - 1,073,148 - 1,073,148 (101,465)
Increase (decrease) in deferred pension inflows - (2,715,640) - (2,715,640) (2,320,213)
Total adjustments 60,754 (538,311)0 (477,557) (290,502)
Net cash flows from operating activities $60,754 ($67,754) ($42,065) ($49,065) ($316,920)
Total
180
III. STATISTICAL SECTION (UNAUDITED)
181
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182
STATISTICAL SECTION
The following detailed statistical tables are presented to provide a context for understanding
and evaluating the information presented in the other parts of this report. Unless otherwise
noted, the information in these statistical tables is derived from the City of Columbia Heights’
Comprehensive Annual Financial Reports for the relevant years. Certain information in prior
years’ presentations have been reclassified and/or adjusted in these tables to conform to the
current year presentation. These tables address the five categories of information listed below.
Financial Trends - Tables 1 through 4
These tables contain trend information to help the reader understand how the City’s financial
performance has changed over time.
Revenue Capacity - Tables 5 through 8
These tables contain information to help the reader assess the factors affecting the City’s ability
to generate property taxes.
Debt Capacity - Tables 9 through 13
These tables contain information to help the reader assess the affordability of the City’s current
levels of outstanding debt and the City’s ability to issue additional debt in the future.
Demographic and Economic Information - Tables 14 and 15
These tables offer demographic and economic indicators to help the reader understand the
environment within which the City’s financial activities take place and to help make
comparisons over time and with other governments.
Operating Information - Tables 16 through 18
These tables contain information about the City’s operations and resources to help the reader
understand the relationship between the City’s financial activities and the services the City
provides.
183
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NET POSITIONS BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2011 2012 2013 2014
Governmental activities:
Net investment in capital assets $28,095,261 $27,666,461 $27,358,490 $26,049,057
Restricted 3,213,455 2,624,466 2,025,652 3,752,839
Unrestricted 21,119,179 21,241,595 22,222,578 23,157,208
Total governmental activities net position $52,427,895 $51,532,522 $51,606,720 $52,959,104
Business-type activities:
Net investment in capital assets $9,331,167 $9,819,666 $10,365,407 $10,729,457
Restricted 381,465 161,503 643,320 543,822
Unrestricted 5,918,147 6,680,609 6,690,111 7,269,897
Total business-type activities net position $15,630,779 $16,661,778 $17,698,838 $18,543,176
Primary government:
Net investment in capital assets $37,426,428 $37,486,127 $37,723,897 $36,778,514
Restricted 3,594,920 2,785,969 2,668,972 $4,296,661
Unrestricted 27,037,326 27,922,204 28,912,689 $30,427,105
Total primary government net position $68,058,674 $68,194,300 $69,305,558 $71,502,280
Note: The City implemented GASB statement No. 65 in fiscal 2012. 2011 net position information has
been restated for this accounting change. Years prior to 2011 have not been restated.
184
Table 1
2015 2016 2017 2018 2019 2020
$27,168,555 $29,429,299 $30,852,838 $28,080,462 $29,402,901 $31,424,776
4,710,968 5,120,811 3,145,032 5,032,456 2,745,259 2,541,590
15,717,275 14,107,592 15,789,925 16,318,914 19,319,906 22,947,463
$47,596,798 $48,657,702 $49,787,795 $49,431,832 $51,468,066 $56,913,829
$11,928,401 $11,965,156 $11,831,468 $11,675,036 $11,498,655 $13,319,631
533,756 571,852 498,838 559,390 517,261 516,877
6,098,230 6,533,748 7,111,765 8,093,363 9,734,134 8,937,349
$18,560,387 $19,070,756 $19,442,071 $20,327,789 $21,750,050 $22,773,857
$39,096,956 $41,394,455 $42,684,306 $39,755,498 $40,901,556 $44,744,407
$5,244,724 $5,692,663 3,643,870 5,591,846 3,262,520 3,058,467
$21,815,505 $20,641,340 22,901,690 24,412,277 29,054,040 31,884,812
$66,157,185 $67,728,458 $69,229,866 $69,759,621 $73,218,116 $79,687,686
185
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2011 2012 2013 2014
Expenses
Governmental activities:
General government $2,039,680 $1,977,594 $1,976,207 $2,104,025
Public safety 5,549,678 5,708,009 5,683,769 5,801,747
Public works 2,654,047 3,200,572 2,843,102 3,052,844
Culture and recreation 2,576,409 2,500,719 2,553,760 2,565,755
Community development 1,630,350 2,157,966 2,010,040 1,943,576
Interest on long-term debt 909,858 845,879 808,933 761,967
Total governmental activities expenses 15,360,022 16,390,739 15,875,811 16,229,914
Business-type activities:
Water 2,370,076 2,311,858 2,371,414 2,336,475
Sewer 1,710,381 1,464,269 1,538,970 1,789,260
Refuse 1,561,659 1,601,648 1,628,966 1,695,997
Storm sewer 298,577 329,998 307,876 315,809
Liquor 8,155,888 8,371,610 8,341,309 8,148,788
Total business-type activities expenses 14,096,581 14,079,383 14,188,535 14,286,329
Total primary government expenses $29,456,603 $30,470,122 $30,064,346 $30,516,243
Program revenues
Governmental activities:
Charges for services:
General government $189,641 $204,391 $385,728 $194,201
Public safety 697,656 736,927 706,168 752,694
Public works 48,303 139,305 39,141 89,392
Culture and recreation 159,829 137,978 163,931 234,494
Community development 962,276 961,420 976,030 987,722
Operating grants and contributions:
General government - - - -
Public safety 563,914 556,387 511,527 404,486
Public works 176,578 189,039 233,748 557,112
Culture and recreation 76,864 57,337 56,069 31,521
Community development 112,895 23,010 - -
Capital grants and contributions:
General government 38,399 - - -
Public safety 11,303 - - -
Public works 1,314,547 797,921 855,227 183,706
Culture and recreation - - - -
Community development 175,467 204,349 1,026,706 422,773
Total governmental activities program revenues 4,527,672 4,008,064 4,954,275 3,858,101
186
Table 2
Page 1 of 2
2015 2016 2017 2018 2019 2020
$2,128,964 $2,239,601 $2,087,930 $2,252,456 $2,237,467 $2,436,098
6,265,485 7,891,721 6,927,308 6,584,189 6,875,101 8,206,813
3,529,547 3,653,777 3,452,239 4,841,290 3,404,984 3,249,175
2,926,004 2,982,919 3,057,306 3,821,503 3,699,635 3,347,512
1,555,640 877,622 1,147,550 1,398,103 1,002,298 1,839,279
948,493 958,465 973,688 688,884 535,798 499,896
17,354,133 18,604,105 17,646,021 19,586,425 17,755,283 19,578,773
2,367,954 2,535,133 3,090,927 2,748,803 2,678,905 2,904,931
1,621,506 1,770,538 1,977,662 1,820,151 1,994,854 2,144,690
1,753,406 1,860,602 2,037,098 1,944,325 1,883,849 2,028,140
541,926 490,608 380,844 511,836 812,304 572,081
8,125,188 8,274,354 8,098,980 8,227,772 8,491,315 7,329,328
14,409,980 14,931,235 15,585,511 15,252,887 15,861,227 14,979,170
$31,764,113 $33,535,340 $33,231,532 $34,839,312 $33,616,510 $34,557,943
$206,531 $289,304 $262,466 $264,782 $239,208 $234,197
703,489 670,144 712,314 766,450 957,982 834,238
51,991 273,698 504,412 154,219 164,769 29,133
227,224 240,331 255,498 289,066 254,286 99,542
1,001,740 1,059,585 1,045,924 373,610 704,987 631,749
- - 1,993 37,636 11,133 303,740
485,439 499,319 619,900 516,775 515,846 983,477
1,314,378 1,119,332 518,923 881,029 323,994 1,152,281
18,422 18,134 56,844 20,830 34,236 129,179
96,274 - - 2,455 - 295,993
- - - - - 39,605
15,350 145,849 4,237 - - 297,196
811,654 929,746 1,693,222 1,059,322 321,087 139,738
252,260 694,619 369,771 - - 80,330
364,791 100,000 1,500 - - 57,823
5,549,543 6,040,061 6,047,004 4,366,174 3,527,528 5,308,221
187
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2011 2012 2013 2014
Business-type activities:
Charges for services:
Water $2,530,803 $2,777,383 $3,020,174 $2,805,072
Sewer 1,523,852 1,581,516 1,618,786 1,627,078
Refuse 1,682,178 1,761,860 1,826,226 1,887,038
Storm sewer 350,618 353,343 368,925 366,384
Liquor 8,494,962 8,804,233 8,747,084 8,415,371
Operating grants and contributions:
Water - - 1,971 -
Sewer - - - -
Refuse 66,163 62,471 68,565 91,421
Storm sewer - - 14,335 -
Liquor - - - -
Capital grants and contributions:
Sewer - - - -
Refuse - 50,000 - -
Storm sewer - - - 47,369
Total business-type activities program revenues 14,648,576 15,390,806 15,666,066 15,239,733
Total primary government program revenues $19,176,248 $19,398,870 $20,620,341 $19,097,834
Net (expense) revenue:
Governmental activities ($10,832,350) ($12,382,675) ($10,921,536) ($12,371,813)
Business-type activities 551,995 1,311,423 1,477,531 953,404
Total primary government net (expense) revenue (10,280,355) (11,071,252) (9,444,005) (11,418,409)
General revenues and other changes in net position
Governmental activities:
Taxes:
Property taxes 9,069,092 9,363,598 9,827,378 10,310,867
Tax increment collections 558,861 553,050 532,524 463,837
Unrestricted grants and contributions 1,278,195 1,003,552 1,000,513 1,496,804
Investment earnings 598,880 295,950 (664,694) 1,091,263
Miscellaneous 34,485 7,338 11,842 -
Transfers 264,990 263,814 288,171 361,426
Total governmental activities 11,804,503 11,487,302 10,995,734 13,724,197
Business-type activities:
Investment earnings 135,932 63,321 (152,300)252,360
Transfers (264,990)(263,814)(288,171)(361,426)
Total business-type activities (129,058)(200,493)(440,471)(109,066)
Total primary government $11,675,445 $11,286,809 $10,555,263 $13,615,131
Change in net position:
Governmental activities $972,153 ($895,373)$74,198 $1,352,384
Business-type activities 422,937 1,110,930 1,037,060 844,338
Total primary government $1,395,090 $215,557 $1,111,258 $2,196,722
188
Table 2
Page 2 of 2
2015 2016 2017 2018 2019 2020
$2,730,516 $2,961,086 $3,140,940 $3,325,053 $3,431,811 $3,766,630
1,699,397 1,836,908 1,925,057 2,026,695 2,074,560 2,242,078
1,896,230 1,867,504 1,914,728 1,986,709 2,068,509 2,103,590
375,663 399,604 455,544 458,573 480,867 523,011
8,399,943 8,468,098 8,422,452 8,588,576 8,914,878 7,585,383
- - - - - -
- - - - - -
96,518 99,454 103,517 112,679 102,190 103,695
- - - - - -
- - 3,987 5,694 4,030 4,091
- 70,645 - - 160,288 -
- - - - - -
747,334 - - - 350,253 -
15,945,601 15,703,299 15,966,225 16,503,979 17,587,386 16,328,478
$21,495,144 $21,743,360 $22,013,229 $20,870,153 $21,114,914 $21,636,699
($11,804,590) ($12,564,044) ($11,599,017) ($15,220,251) ($14,227,755) ($14,270,552)
1,535,621 772,064 380,714 1,251,092 1,726,159 1,349,308
(10,268,969) (11,791,980) (11,218,303) (13,969,159) (12,501,596) (12,921,244)
10,512,483 10,752,430 11,029,020 11,673,168 12,325,204 13,412,668
491,639 556,880 604,510 732,192 977,598 1,116,114
1,682,480 1,588,094 1,547,164 1,676,553 1,684,119 1,796,904
342,384 232,036 318,554 354,373 829,368 469,067
(679,895)9,226 574,800 5,528 25,500 2,532,462
369,099 422,365 (231,537)422,474 422,200 389,100
12,718,190 13,561,031 13,842,511 14,864,288 16,263,989 19,716,315
62,521 40,670 44,453 57,100 118,302 63,599
(369,099)(422,365)231,537 (422,474)(422,200)(389,100)
(306,578)(381,695)275,990 (365,374)(303,898)(325,501)
$12,411,612 $13,179,336 $14,118,501 $14,498,914 $15,960,091 $19,390,814
$913,600 $996,987 $2,243,494 ($355,963) $2,036,234 $5,445,763
1,229,043 390,369 656,704 885,718 1,422,261 1,023,807
$2,142,643 $1,387,356 $2,900,198 $529,755 $3,458,495 $6,469,570
189
CITY OF COLUMBIA HEIGHTS, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2011 2012 2013 2014
General fund:
Reserved $ - $ - $ - $ -
Unreserved - - - -
Nonspendable 80,767 87,341 92,638 94,892
Restricted - - - -
Committed 132,595 74,594 50,237 30,548
Assigned - - - -
Unassigned 5,655,693 5,914,974 6,254,402 7,248,380
Total general fund $5,869,055 $6,076,909 $6,397,277 $7,373,820
All other governmental funds:
Reserved $ - $ - $ - $ -
Unreserved, reported in:
Special revenue funds - - - -
Debt service funds - - - -
Capital projects funds - - - -
Nonspendable 2,353,164 2,763,852 1,750,114 1,522,537
Restricted 3,440,649 4,186,081 3,879,706 4,368,851
Committed 12,774,440 10,988,368 12,229,481 13,593,609
Assigned - - - -
Unassigned (1,041)(2,782)(39,344)(75,389)
Total all other governmental funds $18,567,212 $17,935,519 $17,819,957 $19,409,608
190
Table 3
2015 2016 2017 2018 2019 2020
$ - $ - $ - $ - $ - $ -
- - - - - -
94,848 109,841 105,975 136,962 137,545 131,857
- - - - - -
- - - - - -
44,000 105,000 1,604,438 61,477 52,471 177,389
6,873,054 7,318,303 5,991,395 6,641,233 7,685,738 8,067,967
$7,011,902 $7,533,144 $7,701,808 $6,839,672 $7,875,754 $8,377,213
$ - $ - $ - $ - $ - $ -
- - - - - -
- - - - - -
- - - - - -
2,724 2,852 2,689 11,938 2,587 2,602
9,821,307 6,582,938 4,347,012 6,221,392 4,350,015 3,600,385
12,902,165 12,417,310 15,778,762 16,780,634 18,019,074 19,253,241
- - 70,000 - - -
(92,040)(209,781)(203,498)(177,101)(143,922)(721,840)
$22,634,156 $18,793,319 $19,994,965 $22,836,863 $22,227,754 $22,134,388
191
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2011 2012 2013 2014
Revenues:
Taxes $9,683,433 $9,948,228 $10,416,523 $10,774,987
Special assessments 729,327 775,714 667,719 458,670
Licenses and permits 378,357 396,226 412,208 415,032
Intergovernmental 2,820,419 2,314,195 2,719,400 2,766,383
Charges for services 1,652,655 1,663,782 1,710,767 1,702,900
Fines and forfeitures 170,089 161,882 148,023 140,571
Investment earnings 562,180 275,750 (611,794) 1,011,063
Other revenues 70,173 63,674 104,577 73,815
Total revenues 16,066,633 15,599,451 15,567,423 17,343,421
Expenditures:
Current:
General government 1,880,257 1,813,433 1,791,379 1,939,689
Public safety 5,037,548 5,250,881 5,171,322 5,270,798
Public works 1,509,527 2,011,507 1,644,075 1,916,874
Culture and recreation 2,306,693 2,184,214 2,233,446 2,247,452
Community development 1,321,431 1,434,329 1,205,273 1,544,419
Capital outlay:
General government 144,029 209,176 13,868 21,642
Public safety 95,281 158,448 70,960 103,707
Public works 1,882,787 557,820 896,223 79,225
Culture and recreation 140,867 18,107 39,768 100,248
Community development 40,549 636,294 566,901 413,179
Debt service:
Principal retirement 1,659,022 972,000 1,559,730 662,000
Interest and fiscal charges 935,405 861,139 833,890 770,535
Issuance costs - - - -
Developer incentives 181,638 116,072 163,972 55,123
Total expenditures 17,135,034 16,223,420 16,190,807 15,124,891
Revenues over (under) expenditures (1,068,401)(623,969)(623,384) 2,218,530
192
Table 4
Page 1 of 2
2015 2016 2017 2018 2019 2020
$11,022,424 $11,313,376 $11,653,834 $12,397,958 $13,243,758 $14,624,642
1,116,734 1,048,926 545,629 640,997 439,609 599,358
626,547 672,000 638,176 469,517 644,829 680,826
4,079,184 3,989,308 4,192,273 3,466,510 2,727,327 4,266,804
1,440,361 1,429,050 1,875,088 1,100,448 1,370,098 938,184
124,067 104,645 108,768 112,553 126,103 109,901
318,284 215,336 290,454 320,573 759,768 429,267
189,073 463,354 116,643 165,609 445,752 180,278
18,916,674 19,235,995 19,420,865 18,674,165 19,757,244 21,829,260
1,950,062 2,107,655 2,012,379 2,200,506 2,167,890 2,455,630
5,595,115 5,570,221 5,914,460 6,213,179 6,402,812 7,919,535
2,220,057 2,227,108 2,216,178 3,395,095 2,248,270 2,141,106
2,581,993 2,605,616 2,700,291 2,867,725 2,869,593 2,646,549
1,136,220 685,180 803,035 838,417 671,671 1,076,152
- - 28,000 - 80,600 276,828
608,932 182,696 230,144 222,395 801,837 598,065
1,727,488 1,275,862 2,365,538 404,086 245,736 2,773,861
4,173,606 6,284,441 575,894 659,776 6,314 22,200
507,472 531,707 71,164 396,783 -
1,036,716 3,310,670 1,047,635 1,240,000 1,200,000 980,000
826,921 910,586 667,863 672,741 607,637 555,801
85,016 107,325 108,255 55,615 - -
164,188 91,646 307,654 254,166 474,949 769,402
22,613,786 25,890,713 19,048,490 19,420,484 17,777,309 22,215,129
(3,697,112) (6,654,718)372,375 (746,319) 1,979,935 (385,869)
193
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2011 2012 2013 2014
Other financing sources (uses):
Bonds issued $ - $ - $563,021 $ -
Payment to refunded bond escrow - - - -
Bond premium (discount) - - - -
Transfers in 411,736 298,814 326,740 405,728
Transfers out (302,881)(110,000)(113,569)(124,302)
Sale of capital assets 40,999 11,315 51,997 66,236
Total other financing sources (uses)149,854 200,129 828,189 347,662
Special item - - - -
Net change in fund balance ($918,547) ($423,840)$204,805 $2,566,192
Expenditures capitalized for governmental
activities reporting purposes 2,270,210 943,602 952,108 417,503
Debt service as a percentage
of noncapital expenditures (A) (B)17.5%12.0%15.7%9.7%
Debt service as a percentage
of total expenditures (A) (B)15.1%11.3%14.8%9.5%
(A) For the purpose of the debt service ratios presented in this table, only the principal and interest components of
the debt service expenditures reported in this table are used, and noncapital expenditures are determined
by subtracting expenditures capitalized for governmental activities reporting purposes from the total
governmental funds expenditures reported in the table.
(B) Certain information from prior years' presentations have been restated in this table to conform
to the current presentation.
194
Table 4
Page 2 of 2
2015 2016 2017 2018 2019 2020
$6,875,000 $2,435,000 $8,505,000 $2,070,000 $ - $ -
- - (8,559,429) - (2,030,000) -
293,651 79,890 163,700 19,921 - -
429,099 435,697 1,594,501 512,282 446,588 389,100
(120,000) (88,917) (1,168,201) (891) - (12,000)
9,135 284,536 651,281 124,769 30,450 22,555
7,486,885 3,146,206 1,186,852 2,726,081 (1,552,962) 399,655
(927,142) - - - - 394,307
$2,862,631 ($3,508,512) $1,559,227 $1,979,762 $426,973 $408,093
6,602,755 7,797,656 3,099,578 679,811 1,134,487 3,670,954
11.6%23.3%10.8%10.2%10.9%8.3%
8.2%16.3%9.0%9.8%10.2%6.9%
195
CITY OF COLUMBIA HEIGHTS, MINNESOTATAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY Table 5Last Ten Fiscal Years(Unaudited)Adjusted Adjusted Tax Tax Capacity Value (A) Taxable Net Total Estimated Capacity ValueFiscalOther Captured TaxArea Wide Allocation (C) Tax Capacity Direct Tax Market as a PercentYear Residential Property (B) Increment Value Subtotal Contribution Distribution Value Rate Value of EMV2011 10,890,631 2,218,809 (568,719) 12,540,721 (796,058) 3,811,856 15,556,519 61.804% 1,185,782,600 1.312%2012 9,087,666 2,141,140 (521,306) 10,707,500 (710,709) 4,059,432 14,056,223 66.300% 1,134,720,200 1.239%2013 7,692,288 1,946,245 (489,233) 9,149,300 (678,105) 4,051,497 12,522,692 80.871% 993,984,300 1.260%2014 8,194,709 1,012,690 (443,838) 8,763,561 (568,852) 4,334,662 12,529,371 78.177% 954,475,000 1.313%2015 8,872,294 1,824,746 (465,433) 10,231,607 (569,588) 4,339,040 14,001,059 70.811% 1,093,861,500 1.280%2016 9,262,683 1,861,323 (523,754) 10,600,252 (555,804) 4,149,906 14,194,354 74.841% 1,132,257,300 1.254%2017 10,024,437 1,994,028 (567,640) 11,450,825 (580,154) 4,468,959 15,339,630 68.546% 1,214,009,300 1.26%2018 11,317,981 2,036,605 (684,352) 12,670,234 (603,705) 4,613,838 16,680,367 67.645% 1,335,438,300 1.25%2019 12,593,359 1,977,200 (917,394) 13,653,165 (653,623) 4,652,048 17,803,023 66.775% 1,466,682,000 1.21%2020 14,334,714 2,397,882 (1,125,976) 15,606,620 (687,648) 5,017,317 19,936,289 64.306% 1,625,512,417 1.23%(A) 2012-2020 taxable market values used to calculate tax capacity values in this table are reduced by the market value homestead exclusion, which is new for 2012.(B) The category "Other Property" is substantially all commercial/industrial property, plus nomimal amounts of railroad and personal property.( C) The Metropolitan Fiscal Disparities Act was first implemented for taxes payable in 1975 for the seven Metropolitan countiesof Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. Forty percent of the increase incommercial-industrial (including public utility) valuation in each assessment district since 1971 is contributed to an area-widetax base. Using the factors of population and real property market value, a per capita distribution index is calculated. Thisindex is employed in determining what proportion of the valuation shall be distributed back to each assessment district. Source: Anoka County Auditor's Tax Certificate196
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX RATES (A) Table 6
Last Ten Fiscal Years
City
Fiscal Direct School Special
Year Rate (A) District 13 County Districts ( C) Total
2011 61.804% 18.842% 37.235% 9.605% 127.486%
2012 66.300% 24.200% 38.415% 9.932% 138.847%
2013 80.871% 27.636% 41.443% 12.464% 162.414%
2014 78.177% 24.824% 40.365% 12.297% 155.663%
2015 70.811% 32.562% 35.964% 10.811% 150.148%
2016 74.841% 29.442% 36.637% 11.016% 151.936%
2017 68.546% 27.633% 34.633% 10.304% 141.116%
2018 67.645% 27.900% 33.269% 9.871% 138.685%
2019 66.775% 33.148% 32.505% 9.074% 141.502%
2020 64.306% 23.385% 31.133% 8.494% 127.318%
(A) These property tax rates are stated as a percentage of tax capacity value. Refer to Table 5 for tax capacity value.
Tax capacity values after 2011 are reduced the market value homestead exclusion, which excludes a portion of homesteaded va
from taxation. Consequently, post-2011 tax rates are stated higher for any given levy amount, relative to prior years.
Rates are determined by tax district. Within the Anoka County property tax system, the City is an individual tax
district. Thus the City direct rate is an individual rate, and is not comprised of component direct rates.
(B) Overlapping rates are those of local and county governments that apply to property owners within the City. Most,
but not all, overlapping rates apply to all City property owners. For example, although the school and county
property tax rates apply to all City property owners, special district rates apply only to the City property owners
whose property is located within each special district's geographic boundaries.
(C) Special districts include Metropolitan Council, Metropolitan Transit District, Metropolitan Mosquito Control
District, N.E. Metro School District 916, Rice Creek Watershed District, Anoka County Housing and
Redevelopment Authority, Anoka County Regional Rail Authority, County/City Radio, Columbia Heights
Housing and Redevelopment Authority and the Mississippi Watershed Management.
Overlapping Rates (B)
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL PROPERTY TAX PAYERS Table 7
Current Year and Ten Years Ago
Percentage Percentage
Tax of Total City Taxable of Total City
Capacity Tax Capacity Capacity Tax Capacity
Taxpayer Value (A) & (B) Rank Value Value (A) Rank Value
Columbia Heights Leased Housing I $298,005 1 2.05% N/A N/A N/A
Columbia Heights Leased Housing III 223,843 2 1.54%N/A N/A N/A
Medtronic Inc 185,500 3 1.27% $228,372 1 1.59%
Crestview Corporation 140,849 4 0.97% 106,702 6 0.74%
Jones Family Investments LLC 133,916 5 0.92%N/A N/A N/A
Burlington Northern 107,298 6 0.74%N/A N/A N/A
Columbia Park Properties 105,848 7 0.73% 112,868 3 0.78%
Parkview Limited Partnership 100,582 8 0.69%N/A N/A N/A
Lynde Investment Co MN Partnership 91,957 9 0.63% 78,241 8 0.54%
Xcel Energy/ Northern States Power Co 85,148 10 0.58%N/A N/A N/A
Centro Bradley SPE 5 LLC N/A N/A N/A 149,696 2 1.04%
Stadium Village Properties LLC N/A N/A N/A 112,494 4 0.78%
Consolidated Realty of Mpls N/A N/A N/A 109,689 5 0.76%
Columbia Heights Center LLC N/A N/A N/A 87,354 7 0.61%
New Heights Development LLC N/A N/A N/A 73,119 9 0.51%
Jeff's Bobby & Steve's Auto World N/A N/A N/A 72,346 10 0.50%
Total $1,472,946 10.11% $1,130,881 7.85%
Total All Property $14,570,559 $14,398,494
(A) Tax Capacity values in this table are before adjustments for captured tax increment value and area-wide allocations. See Table 5.
(B) 2020 taxable market values used to calculate tax capacity values in this table are reduced by the market value homestead exclusion (first effective 2012.)
Source: Anoka County Auditor's Tax Certificate.
20112020
199
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Years
County State Market
Fiscal Gross Adjustments Value Homestead Adjusted
Year Tax Levy (A) to Levy (B) Credit (A) Tax Levy
2011 $9,426,760 ($141) ($608,241) $8,818,378
2012 9,136,706 (54) - 9,136,652
2013 9,536,888 (182) - 9,536,706
2014 9,911,706 166 - 9,911,872
2015 10,233,706 207 - 10,233,913
2016 10,455,756 196 - 10,455,952
2017 10,795,834 188 - 10,796,022
2018 11,324,913 97 - 11,325,010
2019 11,928,224 224 - 11,928,448
2020 12,943,950 157 - 12,944,107
(B) Anoka County adjusts the property tax levy adopted by the City Council for certain items. These are primarily
excess tax increment reimbursements and rounding. Abatements or increases of tax to individual taxpayers are not
included in these adjustments.
(A) Under state law for years prior to 2012, the stated amount of the annual property tax levy adopted by the City
Council included both the actual property tax plus an amount termed the "state market value homestead credit." The
state market value homestead credit was determined by a formula in state law. To the extent this market value
homestead credit was paid by the State of Minnesota and received by the City in any given year, it was reported as
intergovernmental revenue in the City's financial statements. Only the portion of the gross levy that was actually levied
upon property is reported as property tax revenue in the City's financial statements.
This table only includes tax levies for the City of Columbia Heights, the primary government. It does not include tax
levies for the special taxing district of the Columbia Heights HRA, a component unit of the City.
200
Table 8
Collections in Total Collections to Date
Collection % of Adjusted Subsequent % of Adjusted
Amount Tax Levy Years Amount Tax Levy
$8,578,784 97.28%$237,757 $8,816,541 99.98%
8,932,564 97.77%200,654 9,133,218 99.96%
9,379,873 98.36%149,746 9,529,619 99.93%
9,778,631 98.66%114,660 9,893,291 99.81%
10,103,675 98.73%114,754 10,218,429 99.85%
10,335,418 98.85%103,502 10,438,920 99.84%
10,694,493 99.06%87,114 10,781,607 99.87%
11,214,710 99.03%85,657 11,300,367 99.78%
11,752,267 98.52%82,039 11,834,306 99.21%
12,747,884 98.48%N/A Not Available Not Available
Collected Within The Fiscal Year For
Which Levied
201
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202
CITY OF COLUMBIA HEIGHTS, MINNESOTARATIOS OF OUTSTANDING DEBT BY TYPE Table 9Last Ten Fiscal YearsGovernmental ActivitiesBusiness-Type ActivitiesAll ActivitiesGeneralGeneralGeneralGeneralLiquorObligationObligationObligationObligationFacilityBonds RepaidBondsBonds With Tax IncrementTotalBonds WithLeaseTotalPercentageFiscalOnly With With Pledged Pledged Special Revenue Governmental PledgedRevenue Business-TypeTotalof PersonalPerYearGeneral Taxes Tax Increment AssessmentsBondsActivitiesRevenuesBonds (B)ActivitiesAll DebtIncome (A)Capita (A)2011$13,480,000$580,000$2,740,730$2,790,000$19,590,730$1,304,270$4,750,000$6,054,270$25,645,0005.3%1,315201213,090,000580,0002,211,7302,737,00018,618,7301,123,2704,595,0005,718,27024,337,0004.8%1,240201312,685,000525,0001,733,0212,679,00017,622,0212,436,9794,430,0006,866,97924,489,0005.1%1,245201412,260,000470,0001,613,0212,617,00016,960,0212,401,9794,260,0006,661,97923,622,0004.9%1,201201518,733,863410,0001,379,3052,549,00023,072,1682,085,6954,080,0006,165,69529,237,8636.1%1,486201618,330,232350,0001,132,6352,435,00022,247,8671,777,3653,895,0005,672,36527,920,2325.8%1,422201718,100,531285,000880,0002,315,00021,580,5314,783,105 - 4,783,10526,363,6365.3%1,319201819,281,618220,000695,0002,190,00022,386,6184,361,429 - 4,361,42926,748,0475.0%1,327201916,497,618 - 550,0002,065,00019,112,6183,875,682 - 3,875,68222,988,3004.0%1,121202015,725,670 - 430,0001,935,00018,090,6703,420,901 - 3,420,90121,511,5713.8%1,103(A) Based on population and income data in Table 14. (B) In 2017, Liquor Facility Lease Revenue Bonds were refunded with pledged revenue General Obligation BondsCertain information from prior years' presentations have been restated in this table to conformto the current presentation.203
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RATIOS OF OUTSTANDING NET GENERAL BONDED DEBT BY TYPE
Last Ten Fiscal Years
Subtotal of
Governmental Less: Governmental Percentage
General Governmental Net General of Estimated
Fiscal Obligation Restricted for Obligation Property
Year Bonds Repayment Bonded Debt Value (B)
2011 $16,800,730 $2,162,119 $14,638,611 1.23%
2012 15,881,730 1,559,985 14,321,745 1.26%
2013 14,943,021 1,000,831 13,942,190 1.40%
2014 14,281,021 1,134,227 13,146,794 1.38%
2015 20,249,305 1,174,473 19,074,832 1.74%
2016 19,812,867 1,580,529 18,232,338 1.61%
2017 (C) 19,265,531 1,035,920 18,229,611 1.50%
2018 20,196,618 3,184,433 17,012,185 1.27%
2019 17,047,618 1,173,486 15,874,132 1.08%
2020 16,155,670 1,215,855 14,939,815 0.92%
(A) Based on population and income data in Table 14. Certain information from prior years' presentations
have been restated in this table to conform to the current presentation.
(B) Based on the estimated market value of property in Table 5.
The estimated market value of property bears a stong relationship to the debt capacity of the City.
It should be noted however, that in the State of Minnesota, property tax revenue is calculated
on the tax capacity value of property. Tax capacity value is derived from estimated market value by a
set of class rates and other adjustments as determined by the State legislature. The historical relationship
between estimated market value and tax capacity value for property in the City is shown in Table 5.
( C) In 2017 Liquor Facility Lease Revenue Bonds were refunded with pledged revenue General Obligation Bonds
204
Table 10
Business-type Subtotal of
General Less: Business-type
Obligation Bonds Business-type Net General Percentage of Total
With Pledged Restricted for Obligation Business-type Net General Per
Revenues Repayment Bonded Debt Revenue Bonded Debt Capita (A)
$1,304,270 $273,966 $1,030,304 16.9% $15,668,915 801
1,123,270 226,292 896,978 13.9% $15,218,723 632
2,436,979 259,366 2,177,613 33.7% $16,119,803 820
2,401,979 543,822 1,858,157 28.8% $15,004,951 763
2,085,695 533,756 1,551,939 23.2% $20,626,771 1,044
1,777,365 571,852 1,205,513 17.1% $19,437,851 990
4,783,105 499,838 4,283,267 27.0% $22,512,878 1,126
4,361,429 559,390 3,802,039 23.2% $20,814,224 1,033
3,875,682 517,262 3,358,420 19.8% $19,232,552 938
3,420,901 513,414 2,907,487 17.1% $17,847,302 915
205
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 11
December 31, 2020
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit (A) Outstanding Applicable (B) Debt
Debt repaid with property taxes:
Anoka County $73,895,000 4.5492% $3,361,631
Independent School District 13 25,053,058 72.7383% 18,223,168
Metropolitan Council 1,555,384,035 0.0423% 657,927
Subtotal - overlapping debt 22,242,727
City direct debt - governmental activities 18,090,670
Total direct and overlapping debt $40,333,397
(A) Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the
taxpayers of the City. This process recognizes that, when considering the City's ability to issue and repay long-term
debt, the entire debt burden borne by the taxpayers should be taken into account.
(B) The percentage of overlapping debt applicable is estimated using adjusted taxable net tax capacity values of property,
which is the tax capacity value after adjustments for captured tax increment value and area-wide allocations
(see Table 5) Applicable percentages were estimated by determining the portion of each governmental unit's tax.
capacity value that is within the City's boundaries and dividing it by each unit's total tax capacity value.
Source: Anoka County Auditor's Tax Certificate
206
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LEGAL DEBT MARGIN INFORMATION Table 12
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2020
Assessor's Estimated Market Value (A)$1,625,512,417
Debt limitation percentage (A)3%
Debt limit 48,765,373
Net debt applicable to limit (B)15,725,670
Legal debt margin $33,039,703
Legal debt margin as a percentage of limit 67.75%
Legal Debt Margin Calculation for Fiscal Years 2011 Through 2019
Legal Debt
Net Debt Legal Margin as a
Fiscal Debt Applicable to Debt Percentage
Year Limit Limit Margin of Debt Limit
2011 $35,278,494 $12,698,431 $22,580,063 64.01%
2012 29,067,313 10,275,000 18,792,313 64.65%
2013 29,819,529 12,685,000 17,134,529 57.46%
2014 28,634,250 12,260,000 16,374,250 57.18%
2015 32,815,845 18,460,000 14,355,845 43.75%
2016 33,967,719 18,330,232 15,637,487 46.04%
2017 36,420,279 18,100,531 18,319,748 50.30%
2018 40,063,149 19,281,618 20,781,531 51.87%
2019 44,000,460 16,497,618 27,502,842 62.51%
(A) The debt limit within Minnesota Statutes, Section 475.53, subd.1) is as follows:
1. For years after 2013, 3% of the Assessor Estimated Market Value of taxable property within the City.
2. For years prior to 2014, 3% of the Taxable Market Value of property within the City, after exclusions.
(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.
(C ) The City's debt is also limited by their Charter, Section 72. Per this Section,
the limit on debt is 10% of the 2018/2019 Assessor's Estimated Market Value, or $146,668,200.
The City's outstanding debt, including revenue subject to the City Charter is $16,497,618.
207
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PLEDGED REVENUE COVERAGE NON-OBLIGATION DEBT
Last Ten Fiscal Years
2011 2012 2013 2014
Economic Development Authority
Tax Increment Revenue Bonds Series 2007/2016: (A)
Tax increment revenue from applicable parcels $211,533 $175,832 $170,496 $162,056
Bond Proceeds - - - -
Intergovernmental:
Market Value TIF credit 34,351 - - -
Net available revenue $245,884 $175,832 $170,496 $162,056
Debt service:
Principal (including early redemption)48,000 53,000 58,000 62,000
Interest 148,788 146,263 143,488 140,488
Total debt service $196,788 $199,263 $201,488 $202,488
Coverage 125%88%85%80%
Economic Development Authority
Lease Revenue Bonds Series 2007B:(B)
Annual appropriation of liquor net revenues $390,000 $386,000 $390,000 $384,000
Investment income 1,500 1,000 (2,500)3,230
Issuance costs and administration (expense)(2,000) (2,000) (2,332) (2,200)
Net available revenue $389,500 $385,000 $385,168 $385,030
Debt service:
Principal (including early redemption)$150,000 $155,000 $165,000 $170,000
Interest 230,630 223,768 213,178 209,030
Total debt service $380,630 $378,768 $378,178 $379,030
Coverage 102%102%102%102%
(A) 2016 Tax Increment Revenue bonds were issued to refund 2007 bonds
(B) Lease Revenue Bond Series 2007B was refunded to a General Obligation bond in 2017
Note: Details regarding the City's outstanding debt can be found in Note 7 of the financial statements.
208
Table 13
2015 2016 2017 2018 2019 2020
$196,024 $329,617 $388,276 $432,825 $652,796 $782,617
- 2,435,000 - - - -
- - - - - -
$196,024 $2,764,617 $388,276 $432,825 $652,796 $782,617
68,000 2,549,000 120,000 125,000 125,000 130,000
137,238 133,688 73,898 65,916 63,873 61,958
$205,238 $2,682,688 $193,898 $190,916 $188,873 $191,958
96%103%200%227%346%408%
$380,000 $392,000 $ - $ - $ - $ -
91 400 455 - - -
(2,667) (2,667)(475) - - -
$377,424 $389,733 ($20)$0 $0 $0
$180,000 $185,000 $3,895,000 $ - $ - $ -
201,155 192,943 184,392 - - -
$381,155 $377,943 $4,079,392 $ - $ - $ -
99%103%N/A N/A N/A N/A
209
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS Table 14
Last Ten Fiscal Years
Per
Capita
Fiscal Personal Personal Unemployment
Year Population Income Income Rate
2011 19,568 $487,243,200 $24,900 6.8%
2012 19,667 507,408,600 25,800 5.9%
2013 19,667 478,616,112 24,336 5.0%
2014 19,674 502,434,612 25,538 4.1%
2015 19,758 497,427,408 25,176 3.6%
2016 19,632 478,137,360 24,355 3.9%
2017 19,995 494,536,335 24,733 3.4%
2018 20,153 537,178,215 26,655 2.8%
2019 20,503 575,375,689 28,063 3.1%
2020 19,496 568,971,264 29,184 6.0%
Sources are as follows:
Population: Data for 2011-2019 is estimated by the US Census Bureau
Data for 2020 is from the 2020 US Census.
Per Capita Income:
Data for 2011-2020 provided by the US Census Bureau, American Community Survey.
Certain information from prior years' presentations have been restated in this table to conform
to the current presentation.
Unemployment Rate: Provided by MN Department of Employment and Economic Development for Anoka County.
Rates are not compiled for individual communities within counties.
210
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL EMPLOYERS Table 15
Current Year and Nine Years Ago
Percentage of Percentage of
Total Anoka Total Anoka
County (A) County (A)
Principal Employers Within City Employees Rank Employment Employees Rank Employment
Medtronic Inc 600 1 3.08% 600 1 0.33%
Independent School District 13 546 2 2.80% 475 2 0.26%
Crestview Corporation 280 3 1.44% 180 4 0.10%
City of Columbia Heights 219 4 1.12% 207 3 0.12%
Columbia Park Clinic 120 5 0.62% 120 6 0.07%
Invest Cast 70 6 0.36% 70 8 0.04%
SAVERS/Unique Thrift Shop 65 7 0.33% 75 7 0.04%
Sarna's Classic Grill 60 8 0.31% N/A N/A N/A
Bobby & Steve's Auto World 50 9 0.26% 53 10 0.03%
La Casita Mexican Restaurant 50 10 0.26% 60 9 0.03%
Rainbow Foods N/A N/A N/A 120 5 0.07%
Total 2,060 10.57% 1,960 1.09%
(A) Employment data is not compiled for individual cities within Minnesota counties.
Sources:
The employee count for the City of Columbia Heights is from Table 16. 2020 data for other employers was
not available. The 2019 data was compiled from ReferenceUSA, written and telephone
survey, and the Minnesota Department of Employment and Economic Development.
20112019/2020
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CITY OF COLUMBIA HEIGHTS, MINNESOTACITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAMTable 16Last Ten Fiscal YearsFunction/Program 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020General government Mayor/council5555555555 Administration 11 11 104444556 Finance 14 13 13 13 13 13 13 13 13 13Public safety: Police 35 37 36 35 35 37 39 36 41 42 Fire 32 33 31 31 30 29 30 30 30 31Public works 16 16 15 21 23 23 22 22 22 24Culture and recreation: Library 21 20 21 21 18 18 20 20 21 20 Parks5555555555 Recreation 16 15 15 15 15 15 16 16 16 16Community development5444466666Water4444444444Sewer3344444444Refuse - - - - - - - - - - Storm sewer 1 1 1 1 1 1 1 1 1 1 Liquor 39 40 40 40 41 41 42 42 42 42Total207207204203202205211209215219Source: Organizational Chart in the City of Columbia Heights ACFR.Note: The above table shows the distribution of all permanent employees by head count (including full-time, part-time and paid on-call), by function. This bears a strong relationship to the distribution of employee costs across functions. However, many employees provide services to more than one function, and employee costs are charged to each function based on the services received by each function. Certain information from prior years' presentations has been restated in this table to conform to the current presentation. 213
CITY OF COLUMBIA HEIGHTS, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2011 2012 2013 2014
General government:
Resolutions approved by City Council 159 159 94 98
Ordinances adopted by City Council 15532
Public safety:
Police:
Part I crimes (A) 755 742 674 684
Part II crimes (A) 1,576 1,408 1,326 1,052
Fire:
Emergency medical calls (A) 1,722 1,839 1,942 1,811
Fire calls (A) 764 752 852 729
Inspections & Related Actions (A) 6,073 5,413 5,249 5,077
Public works:
Street paving and patching (tons of asphalt) 869 1,029 224 782
Street sweeping (tons of debris) 712 350 574 540
Trees removed 180 157 284 217
Culture and recreation:
Library: (E)
Items in collection 71,303 72,985 76,658 78,137
Circulation 125,051 129,624 121,827 117,888
Reference inquiries 16,601 14,547 16,068 13,208
Parks and recreation:
Athletics participants (B) 4,299 4,232 5,534 5,125
Other programs, estimated attendance (C)8,000 9,000 10,485 10,637
Number of paid room rentals 177 135 139 140
Community development:
Number of business licenses issued 334 323 346 339
Number of building permits issued (D)1,290 1,058 1,303 1,212
Construction value of permits issued $7,986,467 $7,203,199 $7,388,271 $7,609,375
Water:
Consumption (thousands of gallons)454,223 495,870 461,520 449,415
Sewer (sanitary):
Wastewater (thousands of gallons, 12 months ended June 485,000 455,210 455,310 467,680
Miles of line cleaned/rodded/root-sawed 25 26 33 33
Refuse:
Refuse (tons) 6,789 6,563 6,684 6,648
Recycling (tons) 1,605 1,610 1,690 1,670
Yardwaste (tons) 1,270 1,270 1,169 1,250
Storm sewer:
No operating indicators available not avail not avail not avail not avail
Liquor:
Number of units sold 1,060,150 1,103,790 1,045,188 1,038,985
(A) Public safety operating indicators include services provided to the City of Hilltop under contractual agreements.
The City of Hilltop is completely encircled by the City of Columbia Heights and has a population of 752.
(B) This operating indicator includes duplicate counts for participation in more than one team/league by some persons.
(C) This operating indicator includes duplicate counts for attendance at more than one program by some persons.
It is rounded to the nearest thousand attendees based on review of attendance data.
(D) This operating indicator includes inspection permits issued for new construction,
building alteration/addition, plumbing, heating, street excavation and sign installation.
(E) In 2016, a new library was constructed. The library was closed for 4 weeks for relocation and had roughly 200 less
public service hours.
(F) Many indicators were effected due to the pandemic public safety measures
Certain information from prior years' presentations have been restated in this table to conform to the current presentation.
Sources: Various City departments.
Function/Program
Fiscal Year
214
Table 17
2015 2016 2017 2018 2019 2020 (F)
96 114 123 91 94 114
9115755
673 496 564 585 600 729
1,018 934 873 1,022 1,109 1,065
1,980 1,963 2,485 2,463 2,352 1,695
787 791 419 598 432 476
4,855 5,205 4,719 4,621 2,382 2,416
696 703 612 869 1,227 435
470 448 368 269 570 139
282 216 243 162 103 163
73,907 57,531 53,638 53,501 53,578 52,785
109,018 116,201 123,812 144,112 137,978 103,774
13,923 12,805 12,909 14,703 15,730 10,413
10,836 11,871 13,698 14,415 7,891 1,270
22,679 26,986 26,016 26,480 20,242 3,496
153 143 235 203 201 36
359 348 336 329 336 307
2,164 1,458 1,434 1,108 1,176 1,125
$25,476,137 $35,252,845 $36,189,715 $9,095,404 $14,753,109 $22,346,834
455,527 453,736 447,155 454,725 437,890 461,077
414,930 423,920 454,830 443,630 450,020 500,510
26 28 42 26 24 36
6,895 7,234 7,127 6,535 6,301 7,358
1,824 1,633 1,718 1,747 1,955 1,850
1,450 1,385 1,231 1,090 1,602 1,876
not avail not avail not avail not avail not avail not avail
1,090,131 1,106,305 1,099,497 1,150,458 1,188,991 796,687
Fiscal Year
215
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2011 2012 2013 2014
General government:
City hall square footage 28,530 28,530 28,530 28,530
Public safety:
Police Stations 1 1 1 1
Fire Stations 1 1 1 1
Public Safety Bldg square footage 47,088 47,088 47,088 47,088
Public works:
Office and shop square footage 31,075 31,075 31,075 31,075
Trunk highway miles 3 3 3 3
County road miles 6 6 6 6
City street miles 62 62 62 62
Alley miles 19 19 19 19
Culture and recreation:
Libraries 1 1 1 1
Library square footage 7,896 7,896 7,896 7,896
Parks 13 13 13 13
Playgrounds 11 11 11 11
Gymnasiums square footage 12,726 12,726 12,726 12,726
Mtg & banquet rooms square footage 22,000 22,000 22,000 22,000
Community development:
Senior high-rise apartments (A) 145 145 145 145
Water:
Watermain miles 66 66 66 66
Sewer:
Sanitary sewer miles 59 59 59 59
Refuse:
Recycling centers 1 1 1 1
Storm sewer:
Storm sewer miles 34 34 34 34
Liquor:
Retail stores owned 3 3 3 3
Retail stores leased - - - -
(A) In 2015, Senior high-rise apartment building was sold
Sources: Various City departments.
216
Table 18
2015 2016 2017 2018 2019 2020
28,530 28,530 28,530 28,530 28,530 28,530
111111
111111
47,088 47,088 47,088 47,088 47,088 47,088
31,075 31,075 31,075 31,075 31,075 31,075
333333
666666
62 62 62 62 62 62
19 19 19 19 19 19
111111
7,896 22,600 22,600 22,600 22,600 22,600
13 15 15 15 15 15
11 12 15 15 15 15
12,726 12,726 12,726 12,726 12,726 12,726
22,000 22,000 22,000 22,000 22,000 22,000
- - - - - -
66 66 66 66 66 66
59 59 59 59 59 59
111111
34 34 34 34 34 34
333333
- - - - - -
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IV. OTHER REQUIRED REPORTS SECTION
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55 5th Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com
MINNESOTA LEGAL COMPLIANCE
Independent Auditor’s Report
To the Honorable Mayor and
Members of the City Council
City of Columbia Heights, Minnesota
We have audited, in accordance with auditing standards generally accepted in the United States
of America, and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of
the governmental activities, the business‐type activities, each major fund, and the aggregate
remaining fund information of the City of Columbia Heights, Minnesota as of and for the year
ended December 31, 2020, and the related notes to the financial statements, which collectively
comprise the City of Columbia Heights, Minnesota’s basic financial statements, and have issued
our report thereon dated June 14, 2021.
In connection with our audit, nothing came to our attention that caused us to believe that the
City of Columbia Heights, Minnesota failed to comply with the provisions of the contracting and
bidding, deposits and investments, conflicts of interest, public indebtedness, claims and
disbursements, miscellaneous provisions, and tax increment financing sections of the
Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant
to Minn. Stat. § 6.65, insofar as they relate to accounting matters. However, our audit was not
directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we
performed additional procedures, other matters may have come to our attention regarding the
City of Columbia Heights, Minnesota’s noncompliance with the above referenced provisions,
insofar as they relate to accounting matters.
The purpose of this report is solely to describe the scope of our testing of compliance and the
results of that testing, and not to provide an opinion on compliance. Accordingly, this
communication is not suitable for any other purpose.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
June 14, 2021
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55 5th Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and
Members of the City Council and Management
City of Columbia Heights, Minnesota
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States, the financial
statements of the governmental activities, the business-type activities, each major fund, and
the aggregate remaining fund information of the City of Columbia Heights, Minnesota, as of and
for the year ended December 31, 2020, and the related notes to the financial statements, which
collectively comprise the City of Columbia Heights, Minnesota’s basic financial statements, and
have issued our report thereon dated June 14, 2021.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of
Columbia Heights, Minnesota’s internal control over financial reporting (internal control) as a
basis for designing audit procedures that are appropriate in the circumstances for the purpose
of expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the City of Columbia Heights, Minnesota’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the City of Columbia Heights,
Minnesota’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the entity’s financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify
223
City of Columbia Heights, Minnesota
Report on Internal Control over Financial Reporting
and on Compliance and Other Matters
any deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Columbia Heights,
Minnesota’s financial statements are free from material misstatement, we performed tests of
its compliance with certain provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a direct and material effect on the financial statements.
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 or other matters that are required to be reported under
Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity’s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity’s
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
June 14, 2021
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55 5th Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON
INTERNAL CONTROL OVER COMPLIANCE AND REPORT ON SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and
Members of the City Council
City of Columbia Heights, Minnesota
Report on Compliance for Each Major Federal Program
We have audited the City of Columbia Heights, Minnesota’s compliance with the types of
compliance requirements described in the OMB Compliance Supplement that could have a
direct and material effect on each of the City of Columbia Heights, Minnesota’s major federal
programs for the year ended December 31, 2020. 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.
Management's Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms
and conditions of its federal awards applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of the City of Columbia
Heights, Minnesota’s major federal programs based on our audit of the types of compliance
requirements referred to above. We conducted our audit of compliance in accordance with
auditing standards generally accepted in the United States of America; the standards applicable
to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States; and the audit requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform
Guidance 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.
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We believe that our audit provides a reasonable basis for our opinion on compliance for each
major federal program. However, our audit does not provide a legal determination of the City
of Columbia Heights, Minnesota’s compliance.
Opinion on Each Major Federal Program
In our opinion, the City of Columbia Heights, Minnesota complied, in all material respects, with
the types of compliance requirements referred to above that could have a direct and material
effect on each of its major federal programs for the year ended December 31, 2020.
Report on Internal Control Over Compliance
Management of the City of Columbia Heights, Minnesota is responsible for establishing and
maintaining effective internal control over compliance with the types of compliance
requirements referred to above. In planning and performing our audit of compliance, we
considered the City of Columbia Heights, Minnesota’s internal control over compliance with the
types of requirements that could have a direct and material effect on each major federal
program to determine the auditing procedures that are appropriate in the circumstances for
the purpose of expressing an opinion on compliance for each major federal program and to test
and report on internal control over compliance in accordance with the Uniform Guidance, but
not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, we do not express an opinion on the effectiveness of the City of
Columbia Heights, Minnesota’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of
performing their assigned functions, to prevent, or detect and correct, noncompliance with a
type of compliance requirement of a federal program on a timely basis. A material weakness in
internal control over compliance is a deficiency, or combination of deficiencies, in internal
control over compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of a federal program will not be
prevented, or detected and corrected, on a timely basis. A significant deficiency in internal
control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than
a material weakness in internal control over compliance, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies. We did
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not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of
Columbia Heights, Minnesota as of and for the year ended December 31, 2020, and the related
notes to the financial statements, which collectively comprise the City of Columbia Heights,
Minnesota’s basic financial statements. We issued our report thereon dated June 14, 2021,
which contained unmodified opinions on those financial statements. Our audit was conducted
for the purpose of forming opinions on the financial statements that collectively comprise the
basic financial statements. The accompanying schedule of expenditures of federal awards is
presented for purposes of additional analysis as required by the Uniform Guidance and is not a
required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other
records used to prepare the basic financial statements. The information has been subjected to
the auditing procedures applied in the audit of the financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the schedule of
expenditures of federal awards is fairly stated in all material respects in relation to the basic
financial statements as a whole.
Purpose of this Report
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
June 14, 2021
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended December 31, 2020
Pass Through
Federal Entity
CFDA Identifying Federal
Federal Grantor/Pass-Through Grantor/Program Title Number Number Expenditures
U.S. Department of Housing and Urban Development:
Passed through Anoka County:
Community Development Block Grant (CDBG - Entitlement Grants Cluster)14.218 Not provided $24,755
Total U.S. Department of Housing and Urban Development 24,755
U.S. Department of Transportation:
Passed through City of Fridley, Minnesota:
Alcohol Impaired Driving Countermeasures Incentives Grants I (Highway Safety Cluster) 20.601 Not provided 13,172
Total U.S. Department of Transportation 13,172
U.S. Department of Treasury:
Passed through State of Minnesota:
COVID-19 - Coronavirus Relief Fund 21.019 Not provided 1,570,091
Passed through Anoka County:
COVID-19 - Coronavirus Relief Fund 21.019 Not provided 10,784
Total COVID-19 - Coronavirus Relief Fund 1,580,875
Total U.S. Department of Treasury 1,580,875
U.S. Department of Education:
Passed through Columbia Heights Public School (ISD #13)
Twenty-first Century Community Learning Centers 84.287 Not provided 45,022
Total U.S. Department of Education 45,022
Total Expenditures of Federal Awards $1,663,824
Notes to the schedule of expenditures of federal awards
Note 1. Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Columbia Heights and is
presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the
Uniform Guidance in 2 CFR 200, Audits of States, Local Governments and Nonprofit Organizations. Therefore, some amounts presented
in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
Note 2. Indirect Costs
The City of Columbia Heights did not elect to use the 10% de minimis cost rate for indirect (F&A) costs.
Note 3. Subrecipients
The City of Columbia Heights did not pass any federal funds to subrecipients during 2020.
Note 4. Reporting Entity
For the purposes of this schedule, the reporting entity includes all funds of the City of Columbia Heights, Minnesota. Also included in the
reporting entity, as blended component units, are the Columbia Heights Economic Development Authority and the Columbia Heights
Housing and Redevelopment Authority, as the governing boards are substantively the same as the City Council, and the City is in a
relationship of benefit/burden with the Authorities.
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended December 31, 2020
SECTION I - SUMMARY OF AUDIT RESULTS
Financial Statements
A. Type of auditors’ report issued: Unmodified
B. Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiencies identified that are not
considered to be material weaknesses?
Yes X No
C. Noncompliance material to financial statements
noted?
Yes X No
Federal Awards
D. Internal control over major programs:
Material weakness(es) identified? Yes X No
Significant deficiencies identified that are not
considered to be material weaknesses?
Yes X No
E. Type of auditors’ report issued on compliance for
major programs:
Unmodified
F. Any other findings disclosed that are required to be
reported in accordance with 2 CFR section
200.516(a)?
Yes X No
G. Identification of major programs:
Name of Federal Program
CFDA Number
Coronavirus Relief Fund
21.019
H. Dollar threshold used to distinguish between Type A
and Type B programs:
$750,000
I. Auditee qualified as a low-risk auditee: Yes X No *
* The auditee was not required to have a single audit in the prior two years, and therefore
does not qualify as a low-risk auditee.
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended December 31, 2020
SECTION II – FINANCIAL STATEMENT FINDINGS
No current year findings.
SECTION III – FEDERAL AWARD FINDINGS
No current year findings.
SECTION IV – MINNESOTA LEGAL COMPLIANCE FINDINGS
No current year findings.
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
For the Year Ended December 31, 2020
FOLLOW-UP ON PRIOR YEAR FINDINGS
FINANCIAL STATEMENT FINDINGS
None.
FEDERAL AWARD FINDINGS
None.
MINNESOTA LEGAL COMPLIANCE FINDINGS
None.
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