HomeMy WebLinkAbout2020 EDA
55 5th Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com
To the Board of Commissioners
Columbia Heights Economic Development Authority
Columbia Heights, Minnesota 55421
In conjunction with our audit of the City’s financial statements, we have prepared this
report to assist the EDA board in analyzing the financial activity of the EDA.
Economic Development Authority
The EDA was established in January 1996. The EDA is a separate legal entity from the
City, however, because the Mayor and City Council members comprise the majority of the
EDA’s governing board, the EDA is reported in the City’s financial statements using the
blended method. The EDA financial statements are included as Special Revenue, Debt
Service and Capital Project Funds in the City’s Comprehensive Annual Financial Report.
A summary of the 2020 financial activity is as follows:
Revenue Expenditures Interfund Cash
Fund and Other and Other Transfers Increase (Decrease) Fund Balance Balance
Fund No. Sources Uses (Net) in Fund Balance 12/31/2020 12/31/2020
Special Revenue:
EDA Administration Fund 204 $253,407 $168,334 ($19,500) $65,573 $583,554 $599,056
Debt Service:
Tax Increment Bonds 376 12,879 5,930 - 6,949 612,199 300,951
Multi-Use Redevelopment Plan 385 34,706 253,159 37,655 (180,798) - -
TIF Transition Block 389 60,783 55,704 - 5,079 76,307 102,954
TIF 47th and Central Avenue 371 6,200 496,796 (37,655) (528,251) - -
TIF Huset Park Area Fund 372 791,317 725,098 - 66,219 802,461 1,009,668
TIF Central Valu Center Fund 374 - - - - (2,638) -
TIF 47th and Grand 375 197,406 190,960 - 6,446 5,404 119,060
TIF Scattered Site 391 43,906 6,320 - 37,586 (102,656) 100
Capital Project:
EDA Redevelopment Fund 408 1,887,459 181,876 - 1,705,583 4,199,821 3,322,760
Total $3,288,063 $2,084,177 ($19,500) $1,184,386 $6,174,452 $5,454,549
Columbia Heights
Economic Development Authority
Audit Management Letter
2
EDA Administration Fund (204)
This fund was established in 1996 to account for the revenues and expenditures of all
EDA activity not accounted for in other EDA funds.
A summary of the financial activity of this fund for 2018 through 2020 is as follows:
2018 2019 2020
Revenues:
Property taxes $441,773 $244,276 $248,277
Intergovernmental 1,000 - -
Fee/program revenue 1,030 30 30
Investment income 4,700 11,200 5,100
Miscellaneous 2,707 - -
Total revenues 451,210 255,506 253,407
Expenditures:
Other:
Personal services 180,724 110,611 147,639
Other services and charges 21,203 33,938 1,922
Supplies 23 348 18,773
Total expenditures 201,950 144,897 168,334
Revenues over expenditures 249,260 110,609 85,073
Other financing sources (uses):
Transfers out:
General Fund (101) (269,983) (16,000) (19,500)
Total other financing sources (uses) (269,983) (16,000) (19,500)
Net change in fund balance (20,723) 94,609 65,573
Fund balance - January 1 444,095 423,372 517,981
Fund balance - December 31 $423,372 $517,981 $583,554
Columbia Heights
Economic Development Authority
Audit Management Letter
3
EDA Redevelopment Fund (408)
This fund was established in 2008. Its current function is to fund land acquisition and
other activities for redevelopment, primarily in the City’s commercial areas.
A summary of the financial activity of this fund for 2018 through 2020 is as follows:
2018 2019 2020
Revenue and other sources:
Taxes $ - $241,014 $246,245
Investment income 9,000 9,400 10,400
Other revenues - 194,784 73,039
Transfers in 121,280 1,082,626 -
Total revenue and other sources 130,280 1,527,824 329,684
Expenditures and other uses:
Other services and charges 17,393 57,425 181,876
Capital outlay 134,848 - -
Total expenditures and other uses 152,241 57,425 181,876
Revenues over expenditures (21,961) 1,470,399 147,808
Special item - - 1,557,775
Net change in fund balance (21,961) 1,470,399 1,705,583
Fund balance - January 1 1,045,800 1,023,839 2,494,238
Fund balance - December 31 $1,023,839 $2,494,238 $4,199,821
The special item reported above is the net effect within this fund of the 2020 sale of land
(3989 Central Avenue NE) to a private developer.
Columbia Heights
Economic Development Authority
Audit Management Letter
4
Debt Service Funds
The EDA maintains the following Debt Service Funds:
Tax TIF TIF 47th and TIF TIF Central TIF
Increment Transition Central Huset Park Valu TIF 47th Scattered
Bonds MURP Block Avenue Area Center and Grand Site Total
Revenues:
Tax increments $ - $32,906 $59,783 $ - $782,617 $ - $197,306 $43,806 $1,116,418
Investment income 8,931 1,800 1,000 6,200 8,700 - 100 100 26,831
Other revenues 3,948 - - - - - - - 3,948
Total revenues 12,879 34,706 60,783 6,200 791,317 0 197,406 43,906 1,147,197
Expenditures:
Other services and charges 5,930 - 2,010 268,912 7,953 - 1,758 1,089 287,652
Debt service:
Principal - - - - 130,000 - - - 130,000
Interest and fiscal - - - - 62,433 - - 5,231 67,664
Developer incentives - 1,794 53,694 - 524,712 - 189,202 - 769,402
Total expenditures 5,930 1,794 55,704 268,912 725,098 0 190,960 6,320 1,254,718
Revenues over expenditures 6,949 32,912 5,079 (262,712) 66,219 0 6,446 37,586 (107,521)
Other financing sources (uses):
Transfers in - 37,655 - - - - - - 37,655
Transfers out - - - (37,655) - - - - (37,655)
Total other financing sources (uses) - 37,655 - (37,655) - - - - -
Special item - (251,365) - (227,884) - - - - (479,249)
Net change in fund balance 6,949 (180,798) 5,079 (528,251) 66,219 - 6,446 37,586 (586,770)
Fund balance - January 1 605,250 180,798 71,228 528,251 736,242 (2,638) (1,042) (140,242) 1,977,847
Fund balance - December 31 $612,199 $0 $76,307 $0 $802,461 ($2,638) $5,404 ($102,656) $1,391,077
The special item reported above is the net effect within this fund of the 2020 sale of land
(3989 Central Avenue NE) to a private developer.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
June 14, 2021