HomeMy WebLinkAbout2015 Annual Financial Statments
CITY OF OAK PARK HEIGHTS, MINNESOTA
ANNUAL FINANCIAL REPORT
December 31, 2014
CITY OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
ReferenceNo.
INTRODUCTORY SECTION
Elected and Appointed Officials3
FINANCIAL SECTION
Independent Auditor's Report7
Management's Discussion and Analysis11
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net PositionStatement 125
Statement of ActivitiesStatement 226
Fund Financial Statements:
Balance Sheet - Governmental FundsStatement 328
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental FundsStatement 430
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds Statement 532
Statement of Net Position - Proprietary FundsStatement 633
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary FundsStatement 734
Statement of Cash Flows - Proprietary FundsStatement 835
Statement of Fiduciary Net Position - Agency FundsStatement 936
Notes to Financial Statements37
Required Supplementary Information:
Budgetary Comparison Schedule - General FundStatement 1066
Schedule of Funding Progress - Retiree Health Plan70
Budgetary Comparison Schedule - Note to RSI71
Combining and Individual Nonmajor Fund Financial Statements:
Combining Balance Sheet - Nonmajor Governmental FundsStatement 1174
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental FundsStatement 1275
CITY OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
ReferenceNo.
Subcombining Balance Sheet - Nonmajor Special Revenue FundsStatement 1376
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue FundsStatement 1477
Subcombining Balance Sheet - Nonmajor Debt Service FundsStatement 1578
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service FundsStatement 1679
Subcombining Balance Sheet - Nonmajor Capital Project FundsStatement 1780
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project FundsStatement 1882
Agency Funds:
Subcombining Balance SheetStatement 1984
Subcombining Statement of Changes in Assets and LiabilitiesStatement 2085
STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Position by Component - Last Ten Fiscal YearsTable 188
Changes in Net Position - Last Ten Fiscal YearsTable 290
Fund Balances, Governmental Funds - Last Ten Fiscal YearsTable 394
Changes in Fund Balances, Governmental Funds - Last Ten Fiscal YearsTable 496
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of Taxable PropertyTable 598
Direct and Overlapping Property Tax Capacity RatesTable 6100
Principal Property TaxpayersTable 7101
Property Tax Levies and CollectionsTable 8102
Debt Capacity:
Ratios of Outstanding Debt by TypeTable 9103
Direct and Overlapping Governmental Activities DebtTable 10104
Legal Debt Margin InformationTable 11105
Pledged Revenue CoverageTable 12106
Demographic and Economic:
Demographic and Economic StatisticsTable 13107
Principal EmployersTable 14109
Operating Information:
Full-Time Equivalent City Government Employees By Function/ProgramTable 15110
Operating Indicators by Function/ProgramTable 16112
Capital Asset Statistics by Function/ProgramTable 17114
INTRODUCTORY SECTION
CITY OF OAK PARK HEIGHTS, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
December 31, 2014
Term Expires
Mayor:
Mary McComberDecember 31, 2016
Councilmembers:
Chuck DoughertyDecember 31, 2016
Mike LilijegrenDecember 31, 2014
Mike RunkDecember 31, 2016
Mark SwensonDecember 31, 2014
Administrator:
Eric JohnsonAppointed
Finance Director:
Betty CarusoAppointed
FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Oak Park 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 Oak Park Heights, Minnesota, as of and for the year ended December 31, 2014, and the
related notes to the financial statements, which collectively comprise City of Oak Park Heights,
Minnesota’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.
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 Oak Park Heights,
Minnesota, as of December 31, 2014, 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 Oak Park Heights, Minnesota’s 2013 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 March 31, 2014. In our opinion, the summarized
comparative information presented herein as of and for the year ended December 31, 2013 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, the budgetary comparison information and the schedule
of funding progress, 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Oak Park Heights, Minnesota’s basic financial statements. The
introductory section, combining and individual nonmajor fund financial statements, 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 nonmajor fund financial statements 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 nonmajor fund financial statements 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
April 13, 2015, on our consideration of the City of Oak Park 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 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 internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance
withGovernment Auditing Standards in considering the City of Oak Park Heights, Minnesota’s
internal control over financial reporting and compliance.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
April 13, 2015
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Oak Park Heights, Minnesota (the City) we offer readers of
the City’s financial statements this narrative overview and analysis of the financial activities
of the City for the fiscal year ended December 31, 2014.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$38,890,778 (net position). Of this amount, $19,004,035 (unrestricted net position) may be
used to meet the government’s ongoing obligations to citizens and creditors in accordance
with the City's fund designations and fiscal policies.
The City’s total net position increased by $2,319,493.
As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $23,232,341, an increase of $1,551,639. The increase is due to a
combination of increased revenues and unexpended bond proceeds. Approximately 73% or
$15,911,392 is available for spending according to the City’s policies and constraints.
At the end of the current fiscal year the General Fund balance was $3,902,807, of which
$80,806 is nonspendable, $159,000 is assigned, and $3,663,001 is unassigned. The
unassigned fund balance is 68% of the total subsequent year General Fund budgeted
expenditures.
The General Fund balance increased by $388,436. This increase is a result of actual
expenditures being less than budgeted.
The City’s budgeted transfers were $359,950 from the General Fund to the Budgeted Projects
Fund for capital improvements for streets, parks, public safety, public works, and general
government; $343,295 from the General Fund to the Street Reconstruction Fund; $81,628
from the General Fund to the Storm Sewer Renewal Replacement Fund and $559,000 from
the General Fund to the G.O. Capital Improvement Bond Funds of 2008 and 2009.
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 comprise 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.
Management’s Discussion and Analysis
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.
Thestatement 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 position may serve as a useful indicator of whether the financial position of
the City is improving or deteriorating.
Thestatement 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 and parks and recreation. The
business-type activities of the City include water, sanitary sewer and storm sewer.
The government-wide financial statements are 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 two categories: governmental funds and proprietary 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 resource, 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 balance provide a
Management’s Discussion and Analysis
reconciliation to facilitate this comparison between governmental funds and governmental
activities.
The City maintains seven individual major governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures and changes in fund balance for the following major funds:
General Fund
TIF District #2 – Special Revenue Fund
G.O. CIP Refunding Bonds of 2012A – Debt Service Fund
G.O. Capital Improvement Bonds of 2014 – Debt Service Fund
Capital Revolving Fund – Capital Project Fund
Street Reconstruction Fund – Capital Project Fund
Renewal and Replacement Fund – Capital Project Fund
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the form
of subcombining statements elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund. A budgetary
comparison schedule has been provided for this fund to demonstrate compliance with this
budget – see Statement 10.
The basic governmental fund financial statements are statements 3 through 5 of this report.
Proprietary funds. The City maintains three enterprise funds as a part of its proprietary
fund type. 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, sanitary sewer and storm sewer operations.
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 following funds:
Enterprise funds:
Water
Sanitary Sewer
Storm Sewer
The basic proprietary fund financial statements are 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 City. Fiduciary funds are not reflected by the government-wide financial
statements because the resources of those funds are not available to support the City’s own
programs.
Management’s Discussion and Analysis
The basic fiduciary fund statements are Statements 9, 19 and 20.
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. The notes to the financial statements can be found following Statement 9.
Other information. The combining statements referred to earlier in connection with non-
major governmental funds are presented immediately following the required supplementary
information on budgetary comparisons. Combining and individual fund statements and
schedules are presented as Statements 11 through 18.
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's
financial position. In the case of the City, assets exceeded liabilities by $38,890,778 at the
close of the most recent fiscal year.
The largest portion of the City’s net position ($19,004,035 or 51%) is its unrestricted net
position which may be used to meet the City’s ongoing obligations to citizens and creditors.
City of Oak Park Heights’ Net Position
Governmental ActivitiesBusiness-Type ActivitiesTotals
201420132014201320142013
Assets:
Current and other assets$24,779,047$23,059,529$1,815,260$1,587,489$26,594,307$24,647,018
Capital assets21,607,51618,221,7396,774,3306,604,51528,381,84624,826,254
Total assets$46,386,563$41,281,268$8,589,590$8,192,004$54,976,153$49,473,272
Liabilities:
Long-term liabilities outstanding$14,796,002$11,422,248$29,894$18,635$14,825,896$11,440,883
Other liabilities1,220,1291,341,03739,350120,0671,259,4791,461,104
Total liabilities$16,016,131$12,763,285$69,244$138,702$16,085,375$12,901,987
Net position:
Net investment in capital assets$11,756,453$11,849,446$6,774,330$6,604,514$18,530,783$18,453,960
Restricted1,355,960842,210 - - 1,355,960842,210
Unrestricted17,258,01915,826,3271,746,0161,448,78819,004,03517,275,115
Total net position$30,370,432$28,517,983$8,520,346$8,053,302$38,890,778$36,571,285
A portion of the City’s net position ($18,530,783) reflects its investment in capital assets
(e.g. land, improvements, buildings and structures, machinery and equipment, and furniture
and fixtures) 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. Although the City’s investment in its capital assets is
reported net of related debt, it should be noted that the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities. The remaining balance of $1,355,960 represents resources that are
subject to external restrictions on how they may be used.
Management’s Discussion and Analysis
At the end of the current fiscal year, the City is able to report positive balances in all three
categories of net position, both for the government as a whole, as well as for its separate
governmental and business-type activities.
Governmental Activities
Governmental activities increased the City’s net position by $1,852,449 during 2014. Key
elements of this increase are as follows:
Capital grants and contributions increased $757,000 due to infrastructure construction
and development activity in 2014
Investment income increased by $506,000 due to the realized and unrealized gains in
the value of investments which are annually adjusted in accordance with accounting
standards.
City of Oak Park Heights’ Changes in Net Position
Governmental ActivitiesBusiness-Type ActivitiesTotals
201420132014201320142013
Revenues:
Program revenues:
Charges for services$410,587$594,268$1,666,867$1,641,716$2,077,454$2,235,984
Operating grants and contributions101,44399,171 - - 101,44399,171
Capital grants and contributions1,121,174341,9911,24823,2341,122,422365,225
General revenues:
General property taxes4,581,8544,434,179 - - 4,581,8544,434,179
Tax increment125,120106,924 - - 125,120106,924
Grants and contributions not
restricted to specific programs2,0402,040 - - 2,0402,040
Gain (loss) on sale of capital assets44,1981,956 - (1,472)44,198484
Other revenue31,64426,526 - - 31,64426,526
Unrestricted investment earnings421,387(85,474)29,669(7,026)451,056(92,500)
Total revenues6,839,4475,521,5811,697,7841,656,4528,537,2317,178,033
Expenses:
General government1,663,8661,601,402 - - 1,663,8661,601,402
Public safety1,565,5441,497,765 - - 1,565,5441,497,765
Public works1,020,6641,080,437 - - 1,020,6641,080,437
Parks and recreation285,877269,929 - - 285,877269,929
Interest on long-term debt463,217463,537 - - 463,217463,537
Water - - 477,771468,932477,771468,932
Sanitary sewer - - 694,406695,817694,406695,817
Storm sewer - - 46,39358,23946,39358,239
Total expenses 4,999,1684,913,0701,218,5701,222,9886,217,7386,136,058
Increase in net position before transfers1,840,279608,511479,214433,4642,319,4931,041,975
Transfers12,170406,380(12,170)(406,380) - -
Change in net position1,852,4491,014,891467,04427,0842,319,4931,041,975
Net position - January 1, as previously reported28,517,98327,421,5678,053,3028,026,21836,571,28535,447,785
Prior period adjustment - 81,525 - - - 81,525
Net position - January 1, as restated28,517,98327,503,0928,053,3028,026,21836,571,28535,529,310
Net position - December 31$30,370,432$28,517,983$8,520,346$8,053,302$38,890,778$36,571,285
Management’s Discussion and Analysis
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenditures:
Management’s Discussion and Analysis
Business-Type Activities
Business-type activities increased net position by $467,044 during 2014. Below are graphs
showing the business-type activities revenue and expense comparisons:
Management’s Discussion and Analysis
Financial Analysis of the Government's Funds
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 the end of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $23,232,341.
The General Fund increased by $388,436 in 2014. Expenditures were under budget by
$337,863. This is a result of insurance expense being under budget by $105,000, of which
$49,500 is due to a reclassification to prepaid expenditures. Other significant reductions in
expenditures is due to reduced personnel costs.
The TIF District # 2 decreased by $377,266. This fund was established for possible
development within the city which would require expenditures for street and utility
infrastructure. Preliminary expenses of $372,229 including the purchase of property have
been incurred during 2014. The General Fund provided a $377,000 advance to fund the
expenditures.
The G.O. CIP Refunding Bonds of 2012A decreased by $61,378 due to scheduled debt
payments made with escrowed funds.
The G.O. Capital Improvement Bonds of 2014 increased by $261,257. The bonds were
issued for partial financing of the 2014-2015 Street and Utility Reconstruction Project.
$218,000 of the increase in the fund is due to the prepayment of assessments levied for the
repayment of the bond.
The Capital Revolving Fund decreased by $ 220,136 a net result of the expenditures incurred
relating to the Highway 36 Bridge Project reduced by a partial reimbursement received from
the Minnesota Department of Transportation. The bridge is being constructed by the State of
Minnesota and the Minnesota Department of Transportation. The costs incurred are a result
of negotiating funding and costs of the infrastructure that the city is obligated to relocate for
the project.
The Street Reconstruction Capital Project Fund increased by $2,878,835 during 2014 . This
increase is from a transfers of $2,660,796 from the various capital project funds and bond
proceeds of $3,687,946 for the reconstruction of streets and utilities net of the expenditures
related to the 2014-2015 Street Reconstruction Project.
Management’s Discussion and Analysis
The Renewal and Replacement Capital Project Fund decreased by $1,483,716 during 2014.
This fund receives an annual transfer from the proprietary funds in an amount equal to
depreciation expense on capital assets. The reduction is due to transfers of $1,828,777 to the
Street Reconstruction Fund for infrastructure replacement in the 2014-2015 Street
Reconstruction Project.
The nonmajor special revenue funds increased by $37,198 during 2014.
The nonmajor debt service funds increased by $1,290 during 2014.
The nonmajor capital project funds increase by $127,119 during 2014 due to transfers in
from other funds for the accumulation of resources for future capital improvement
expenditures.
Proprietary funds. The City’s proprietary funds provide the same type of information
found in the government-wide financial statements, but in more detail.
Budgetary Highlights
General Fund
The General Fund budget was not amended during 2014. Actual results as compared to
budgeted were significantly different because of the following:
Property tax revenues were reduced by $289,042 as a result of tax abatements.
Intergovernmental, Licenses and permits and Charges for services had increases over
anticipated amounts.
Investment income was over $73,412 due to historically low interest rates and
unrealized losses from 2013 being recovered in market value adjustments in 2014.
Total general government expenditures were $240,601 under budget because of a
reclassification of insurance costs to prepaid expenditures and a reduction in
personnel costs.
Public safety expenditures were $111,559 under budget due to reduced personnel
costs.
Public works expenditures were $18,867 over budget due to $42,511 of over
expenditures for snow and ice removal and under budget in the street and lighting
departments.
Parks and recreation expenditures were $4,570 under budget.
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and business-
type activities as of December 31, 2014, amounts to $18,530,783 (net of accumulated
depreciation). This investment in capital assets includes land, construction in progress,
buildings and structures, other improvements, infrastructure, machinery and equipment and
furniture and fixtures.
Management’s Discussion and Analysis
City of Oak Park Heights’ Capital Assets
(Net of Depreciation)
BeginningEnding
BalanceIncreasesDecreasesAdjustmentsBalance
Governmental activities:
Capital assets, not being depreciated:
Land$2,239,364$341,707$ - $ - $2,581,071
Construction in progress1,118,7974,543,267(818,236) - 4,843,828
Total capital assets, not being depreciated3,358,1614,884,974(818,236)07,424,899
Capital assets, being depreciated:
Buildings and structures7,563,661 - - 36,4587,600,119
Other improvements1,544,368 - - (38,440)1,505,928
Machinery and equipment573,644 - - (55,730)517,914
Furniture and fixtures418,50755,000(16,258)57,712514,961
Infrastructure12,928,12711,151 - - 12,939,278
Total capital assets, being depreciated23,028,30766,151(16,258)023,078,200
Less accumulated depreciation for:
Buildings and structures637,875182,179 - 1,827821,881
Other improvements305,90546,537 - (1,827)350,615
Machinery and equipment312,39748,320 - - 360,717
Furniture and fixtures195,70745,170(16,056) - 224,821
Infrastructure6,712,845424,704 - - 7,137,549
Total accumulated depreciation8,164,729746,910(16,056)08,895,583
Total capital assets being depreciated - net14,863,578(680,759)(202)014,182,617
Governmental activities capital assets - net$18,221,739$4,204,215($818,438)$0$21,607,516
BeginningEnding
BalanceIncreasesDecreasesBalance
Business-type activities:
Capital assets, not being depreciated:
Land$937,919$ - $ - $937,919
Construction in progress72,4768,602(81,078) -
Total capital assets, not being depreciated1,010,3958,602(81,078)937,919
Capital assets, being depreciated:
Buildings and structures2,047,665 - - 2,047,665
Machinery and equipment448,71546,705 - 495,420
Infrastructure7,311,429449,005 - 7,760,434
Total capital assets, being depreciated9,807,809495,710010,303,519
Less accumulated depreciation for:
Buildings and structures810,01672,542 - 882,558
Machinery and equipment217,51623,112 - 240,628
Infrastructure3,186,157157,765 - 3,343,922
Total accumulated depreciation4,213,689253,41904,467,108
Total capital assets being depreciated - net5,594,120242,29105,836,411
Business-type activities capital assets - net$6,604,515$250,893($81,078)$6,774,330
Additional information on the City’s capital assets can be found in Note 4.
Long-term debt. At the end of the current fiscal year, the City had total bonded debt
outstanding of $14,885,000, an increase of $3,460,000 from 2013.
Management’s Discussion and Analysis
Additional long-term debt in the amount of $247,964 for compensated absences was also
outstanding at the end of 2014.
City of Oak Park Heights’ Outstanding Debt
General obligation bonds, compensated absences and unamortized bond premium:
Governmental ActivitiesBusiness-Type ActivitiesTotals
201420132014201320142013
General obligation bonds$14,885,000$11,425,000$ - $ - $14,885,000$11,425,000
Compensated absences215,029222,23332,93520,452247,964242,685
Bond premium241,808145,441 - - 241,808145,441
Total$15,341,837$11,792,674$32,935$20,452$15,374,772$11,813,126
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of
total estimated market value. The current debt limitation for the City is $19,991,982. The
City’s 2008A and 2009A Capital Improvement Bonds are counted within the statutory
limitation.
Additional information on the City’s long-term debt can be found in Note 6.
Requests for information.This financial report is designed to provide a general overview
of the City’s 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 Director of Finance, 14168 Oak Park Boulevard, Oak
Park Heights, Minnesota 55082-2007.
BASIC FINANCIAL STATEMENTS
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF NET POSITIONStatement 1
December 31, 2014
Primary Government
GovernmentalBusiness-Type
Assets:ActivitiesActivitiesTotal
Cash and investments$18,504,916$1,354,685$19,859,601
Cash with escrow agent5,001,408 - 5,001,408
Accrued interest receivable35,0252,73737,762
Accounts receivable - net41,724404,877446,601
Due from other governmental units416,260719416,979
Prepaid items80,80652,242133,048
Taxes receivable62,667 - 62,667
Special assessments receivable510,041 - 510,041
Land held for resale126,200 - 126,200
Capital assets (net of accumulated depreciation):
Land2,581,071937,9193,518,990
Building and structures6,778,2381,165,1077,943,345
Other improvements1,155,313 - 1,155,313
Machinery and equipment157,197254,792411,989
Furniture and fixtures290,140 - 290,140
Infrastructure5,801,7294,416,51210,218,241
Construction in progress4,843,828 - 4,843,828
Total assets46,386,5638,589,59054,976,153
Liabilities:
Accounts payable157,01313,401170,414
Salaries payable6,5511,5158,066
Contacts payable310,419 - 310,419
Due to other governmental units1,4604,1645,624
Accrued interest payable17,756 - 17,756
Deposits payable9,000 - 9,000
Unearned revenue3,079 - 3,079
Compensated absences payable:
Due within one year45,8353,04148,876
Due in more than one year169,19429,894199,088
Other post employment benefits169,01617,229186,245
Bonds payable:
Due within one year500,000 - 500,000
Due in more than one year14,626,808 - 14,626,808
Total liabilities16,016,13169,24416,085,375
Net position:
Net investment in capital assets11,756,4536,774,33018,530,783
Restricted for:
Debt service628,004 - 628,004
Park improvements664,792 - 664,792
Other purposes63,164 - 63,164
Unrestricted17,258,0191,746,01619,004,035
Total net position$30,370,432$8,520,346$38,890,778
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2014
Program Revenues
Charges For
Functions/ProgramsExpensesServices
Primary government:
Governmental activities:
General government$1,663,866$67,412
Public safety1,565,544306,591
Public works1,020,66436,584
Parks and recreation285,877 -
Interest and fees on long-term debt463,217 -
Total governmental activities4,999,168410,587
Business-type activities:
Water477,771657,286
Sanitary sewer694,406927,129
Storm sewer46,39382,452
Total business-type activities1,218,5701,666,867
Total primary government$6,217,738$2,077,454
The accompanying notes are an integral part of these financial statements.
Statement 2
Net (Expense) Revenue and
Program RevenuesChanges in Net Position
Primary Government
OperatingCapital
Grants andGrants andGovernmentalBusiness-Type
ContributionsContributionsActivitiesActivitiesTotal
$ - $ - ($1,596,454)$ - ($1,596,454)
87,369 - (1,171,584) - (1,171,584)
14,0741,101,174131,168 - 131,168
- 20,000(265,877) - (265,877)
- - (463,217) - (463,217)
101,4431,121,174(3,365,964)0(3,365,964)
- - - 179,515179,515
- - - 232,723232,723
- 1,248 - 37,30737,307
01,2480449,545449,545
$101,443$1,122,422(3,365,964)449,545(2,916,419)
General revenues:
General property taxes4,581,854 - 4,581,854
Tax increment125,120 - 125,120
Grants and contributions not
restricted to specific programs2,040 - 2,040
Unrestricted investment earnings421,38729,669451,056
Gain (loss) on sale of capital assets44,198 - 44,198
Other revenue31,644 - 31,644
Transfers12,170(12,170) -
Total general revenues
and transfers5,218,41317,4995,235,912
Change in net position1,852,449467,0442,319,493
Net position - January 1,28,517,9838,053,30236,571,285
Net position - December 31$30,370,432$8,520,346$38,890,778
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2014
With Comparative Totals For December 31, 2013
528 G.O. CIP 529 G.O. Capital
206 TIF District Refunding Bonds Improvement
General Fund#2of 2012ABonds of 2014A
Assets
Cash and investments$3,455,566$36$15,249$260,918
Cash with escrow agent - - 5,001,408 -
Accrued interest receivable5,565327339
Accounts receivable - net40,941 - - -
Due from other governmental units55,984 - - -
Due from other funds377,000 - - -
Escrow deposit - - - -
Prepaid items80,806 - - -
Delinquent taxes receivable62,667 - - -
Special assessments receivable - - - 510,041
Land held for resale - - - -
Total assets$4,078,529$39$5,016,684$771,298
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable$96,044$305$ - $ -
Salaries payable6,551 - - -
Contracts payable - - - -
Due to other governmental units1,460 - - -
Due to other funds - 377,000 - -
Deposits payable9,000 - - -
Unearned revenue - - - -
Total liabilities113,055377,30500
Deferred inflows of resources:
Unavailable revenue62,667 - - 510,041
Fund balance:
Nonspendable80,806 - - -
Restricted - - 5,016,684261,257
Assigned159,000 - - -
Unassigned3,663,001(377,266) - -
Total fund balance3,902,807(377,266)5,016,684261,257
Total liabilities, deferred inflows of resources, and fund balance$4,078,529$39$5,016,684$771,298
Fund balance reported above
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.
Other long-term assets are not available to pay for current-period expenditures and, therefore, are reported as
unavailable revenues in the funds.
Long-term liabilities, are not due and payable in the current period and, therefore, are not reported in the funds:
Bonds payable
Compensated absences payable
Other post employment benefits
Accrued interest payable
Net position of governmental activities
The accompanying notes are an integral part of these financial statements.
Statement 3
710 Renewal and
ReplacementOther
500 Capital 565 Street Capital Project GovernmentalIntra-Activity
Revolving FundReconstructionFundFundsEliminations
Total Governmental Funds
20142013
$104,168$5,693,364$3,019,267$5,956,348$ - $18,504,916$17,122,693
- - - - - 5,001,4085,063,118
5367,6688,87112,016 - 35,02599,908
- 683 - 100 - 41,724138,909
360,276 - - - - 416,260389,068
- - - - (377,000) - -
- - - - - - 10,000
- - - - - 80,8065,201
- - - - - 62,667101,334
- - - - - 510,04118,509
- - - 126,200 - 126,200111,000
$464,980$5,701,715$3,028,138$6,094,664($377,000)$24,779,047$23,059,740
$8,964$856$ - $50,844$ - $157,013$630,012
- - - - - 6,5516,335
- 310,419 - - - 310,419 -
- - - - - 1,460153,146
- - - - (377,000) - -
- - - - - 9,00017,500
- - - 3,079 - 3,0792,932
8,964311,275053,923(377,000)487,522809,925
360,276 - - 126,200 - 1,059,184569,113
- - - - - 80,8065,201
- 1,118,479 - 843,723 - 7,240,1436,034,749
95,7404,271,9613,028,1385,070,818 - 12,625,65712,304,582
- - - - - 3,285,7353,336,170
95,7405,390,4403,028,1385,914,541023,232,34121,680,702
$464,980$5,701,715$3,028,138$6,094,664($377,000)$24,779,047$23,059,740
$23,232,341$21,680,702
21,607,51618,221,739
1,059,184569,113
(15,126,808)(11,570,441)
(215,029)(222,233)
(169,016)(144,952)
(17,756)(15,945)
$30,370,432$28,517,983
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2014
With Comparative Totals For December 31, 2013
529 G.O.
528 G.O. CIP Capital
RefundingImprovement
206 TIF District Bonds of Bonds of
General Fund#22012A2014A
Revenues:
General property taxes$4,620,521$ - $ - $ -
Tax increment - - - -
Special assessments - - - 218,041
Licenses and permits137,543 - - -
Intergovernmental103,283 - - -
Charges for services84,866 - - -
Fines and forfeits56,537 - - -
Investment income73,4121243,3802,021
Refunds and reimbursements105,153 - - -
Donations and contributions200 - - -
Total revenues5,181,515 12 43,380 220,062
Expenditures:
Current:
General government1,243,46430,519 - -
Public safety1,534,881 - - -
Public works567,942 - - -
Parks and recreation149,786 - - -
Capital outlay - 341,710 - -
Debt service:
Principal - - - -
Interest - - 104,75845,859
Bond issuance costs - - - -
Total expenditures3,496,073 372,229 104,758 45,859
Revenues over (under) expenditures1,685,442 (372,217)(61,378)174,203
Other financing sources (uses):
Sale of capital assets44,400 - - -
Issuance of bonds - - - 87,054
Bond premium - - - -
Transfers in2,467 - - -
Transfers out(1,343,873)(5,049) - -
Total other financing sources (uses)(1,297,006)(5,049)0 87,054
Net change in fund balance388,436 (377,266)(61,378)261,257
Fund balance - January 1, as previously reported3,514,371 - 5,078,062 -
Prior period adjustment - - - -
Fund balance - January 1, as restated3,514,371 - 5,078,062 -
Fund balance - December 31$3,902,807($377,266)$5,016,684$261,257
The accompanying notes are an integral part of these financial statements.
Statement 4
710 Renewal
and
ReplacementOther
500 Capital 565 Street Capital Project GovernmentalIntra-Activity
Revolving FundReconstructionFundFundsEliminationsTotal Governmental Funds
20142013
$ - $ - $ - $ - $ - $4,620,521$4,433,202
- - - 125,120 - 125,120106,924
19,595 - - - - 237,63620,731
- - - - - 137,54390,910
350,000 - - - - 453,283102,211
- - - 35,184 - 120,050337,912
- - - 6,348 - 62,88556,608
8,92466,22898,404129,006 - 421,387(85,474)
- - - 1,400 - 106,553135,364
- - - - - 200500
378,519 66,228 98,404 297,058 0 6,285,178 5,198,888
- - - 171,497 - 1,445,4801,378,891
- - - 506 - 1,535,3871,449,103
6,3859,6633,22414,656 - 601,870805,776
- - - 13,106 - 162,892152,061
592,2703,557,6282,28446,151 - 4,540,0431,103,309
- - - 315,000 - 315,000295,000
- - - 245,578 - 396,195362,436
- 80,533 - - - 80,533 -
598,655 3,647,824 5,508 806,494 0 9,077,400 5,546,576
(220,136)(3,581,596)92,896 (509,436)0 (2,792,222)(347,688)
- - - - - 44,4002,000
- 3,687,946 - - - 3,775,000 -
- 111,689 - - - 111,689 -
- 2,660,796252,1651,166,234(3,668,890)412,7722,274,540
- - (1,828,777)(491,191)3,668,890 - (1,868,160)
0 6,460,431 (1,576,612)675,043 0 4,343,861 408,380
(220,136)2,878,835 (1,483,716)165,607 0 1,551,639 60,692
315,8762,511,6054,511,8545,748,934 - 21,680,70221,538,485
- - - - - - 81,525
315,8762,511,6054,511,8545,748,934 - 21,680,70221,620,010
$95,740$5,390,440$3,028,138$5,914,541$0$23,232,341$21,680,702
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 5
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2014
2014
Amounts reported for governmental activities in the
statement of activities are different because:
Net changes in fund balances - total governmental funds (Statement 4)$1,551,639
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:
Depreciation(746,910)
Capital outlay4,540,043
Other various transactions relating to capital assets:
Transfer of capital assets to business-type activities(400,602)
Donation of capital assets20,000
Disposal of assets(202)
Costs of prior year construction in progress not capitalized and expensed in current year(26,552)
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds:
Change in delinquent taxes receivable(38,667)
Change in deferred special assessments receivable491,532
Change in value of land held for resale15,200
Change in unavailable grant receivable22,006
The issuance of long-term debt (e.g., bonds, leases) provides current
financial resources to governmental funds, while the repayment of the
principal of long-term debt consumes the current financial resources of
governmental funds. Neither transaction, however, has any effect on net
position. The amount of this difference is:
Principal payments on bonds payable315,000
Issuance of general obligaion bonds(3,775,000)
Bond premium(96,367)
Some expenses reported in the statement of activities do not require the use
of current financial resources and, therefore, are not reported as expenditures
in governmental funds. Expenses reported in the statement of activities
include the effects of the changes in these expense accruals as follows:
Change in compensated absences payable7,204
Change in other post employment benefits(24,064)
Change in accrued interest payable(1,811)
Change in net position of governmental activities (Statement 2)$1,852,449
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF NET POSITIONStatement 6
PROPRIETARY FUNDS
December 31, 2014
With Comparative Totals for December 31, 2013
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility
Utility FundUtility FundFundTotals
20142013
Assets:
Current assets:
Cash and cash equivalents$696,103$534,367$124,215$1,354,685$1,122,310
Accrued interest receivable1,4781,0352242,7377,484
Accounts receivable:
Customers136,825198,08820,947355,860362,022
Certified to County16,43018,46714,12049,01761,647
Due from other governmental units719 - - 719 -
Prepaid items8,91143,19913252,24234,026
Total current assets860,466 795,156 159,638 1,815,260 1,587,489
Noncurrent assets:
Capital assets:
Land937,919 - - 937,919937,919
Buildings and structures2,003,68243,983 - 2,047,6652,047,665
Machinery and equipment485,9589,462 - 495,420448,715
Distribution and collection system3,753,2434,007,191 - 7,760,4347,311,429
Construction in progress - - - - 72,476
Total capital assets7,180,802 4,060,636 0 11,241,438 10,818,204
Less: Allowance for depreciation(2,594,133)(1,872,975) - (4,467,108)(4,213,689)
Net capital assets4,586,6692,187,66106,774,3306,604,515
Total noncurrent assets4,586,6692,187,66106,774,3306,604,515
Total assets5,447,1352,982,817159,6388,589,5908,192,004
Liabilities:
Current liabilities:
Accounts payable12,3859952113,40184,471
Deposits payable - - - - 10,000
Salaries payable775740 - 1,5151,996
Due to other governmental units4,164 - - 4,1642,030
Compensated absences payable - current portion1,7801,0761853,0411,817
Total current liabilities19,104 2,811 206 22,121 100,314
Noncurrent liabilities:
Compensated absences payable - noncurrent portion17,49310,5821,81929,89418,635
Other post employment benefits9,5186,3731,33817,22919,753
Noncurrent liabilities27,01116,9553,15747,12338,388
Total liabilities46,11519,7663,36369,244138,702
Net position:
Net investment in capital assets4,586,6692,187,661 - 6,774,3306,604,514
Unrestricted814,351775,390156,2751,746,0161,448,788
Total net position$5,401,020$2,963,051$156,275$8,520,346$8,053,302
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND Statement 7
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2014
With Comparative Totals for December 31, 2013
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility
Utility FundUtility FundFund
Totals
20142013
Operating revenues:
Customer billings$641,760$833,071$81,662$1,556,493$1,611,468
Penalties5,9039,37975516,03717,395
Meter sales2,553 - - 2,5533,019
Charges for services1,306280351,621560
Refunds and reimbursements5,76484,399 - 90,1639,274
Total operating revenues657,286 927,129 82,452 1,666,867 1,641,716
Operating expenses:
Personal services203,108128,36222,473353,943346,225
Contractual services79,01865,39418,686163,098205,419
MCES charges - 408,307 - 408,307394,600
Materials and supplies26,6487,92198635,55527,270
Administrative and personnel charges - - 4,2484,2484,180
Depreciation168,99784,422 - 253,419245,294
Total operating expenses477,771 694,406 46,393 1,218,570 1,222,988
Operating income179,515 232,723 36,059 448,297 418,728
Nonoperating revenues (expenses):
Earnings on investments17,15710,4882,02429,669(7,026)
Other - - 1,2481,24823,234
(Loss) on disposal of capital assets - - - - (1,472)
Total nonoperating revenues (expenses)17,15710,4883,27230,91714,736
Income before contributions and transfers196,672243,21139,331479,214433,464
Capital contributions395,8954,707 - 400,602 -
Transfers:
Transfers to other funds(242,630)(166,725)(3,417)(412,772)(406,380)
Total transfers and contributions153,265(162,018)(3,417)(12,170)(406,380)
Change in net position349,93781,19335,914467,04427,084
Net position - January 15,051,0832,881,858120,3618,053,3028,026,218
Net position - December 31$5,401,020$2,963,051$156,275$8,520,346$8,053,302
Capital
ContributionsTransfers
Reconciliation to Statement of Activities:
Amounts reported above$400,602($412,772)
Amounts reported for business-type activities in the Statement of Activities are different because:
Transfer in of capital assets from governmental activities(400,602)400,602
Amounts reported on the Statement of Activities$ - ($12,170)
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF CASH FLOWSStatement 8
PROPRIETARY FUNDS
For The Year Ended December 31, 2014
With Comparative Totals for December 31, 2013
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility
Utility FundUtility FundFundTotals
20142013
Cash flows from operating activities:
Receipts from customers and users$668,958$928,481$87,501$1,684,940$1,625,769
Payment to suppliers(193,129)(491,015)(24,216)(708,360)(569,352)
Payment to employees(197,780)(124,817)(21,868)(344,465)(358,984)
Miscellaneous revenue - - 1,2481,248 -
Net cash flows provided by (used in) operating activities278,049312,64942,665633,363697,433
Cash flows from noncapital financing activities:
Transfer to other funds(242,630)(166,725)(3,417)(412,772)(406,380)
Cash flows from capital and related
financing activities:
Acquisition of capital assets(415,665)(7,569) - (423,234)(104,937)
Capital contributions395,8954,707 - 400,60223,234
(19,770)(2,862) - (22,632)(81,703)
Cash flows from investing activities:
Investment income19,86912,2522,29534,416(6,988)
Net increase (decrease) in cash and cash equivalents35,518155,31441,543232,375202,362
Cash and cash equivalents - January 1660,585379,05382,6721,122,310919,948
Cash and cash equivalents - December 31$696,103 $534,367 $124,215 $1,354,685 $1,122,310
Reconciliation of operating income to net
cash provided by operating activities:
Operating income$179,515$232,723$36,059$448,297$418,728
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities:
Depreciation168,99784,422 - 253,419245,294
Miscellaneous revenue - - 1,2481,248 -
Changes in assets and liabilities:
Decrease (increase) in receivables11,6721,3525,04918,073(15,947)
Decrease (increase) in prepaid expenses(8,911)(9,173)(132)(18,216)(1,143)
Increase (decrease) in payables(73,224)3,325441(69,458)50,501
Total adjustments98,534 79,926 6,606 185,066 278,705
Net cash provided by (used in) operating activities$278,049$312,649$42,665$633,363$697,433
Noncash investing, capital and financing activities:
Water utility assets in the amount of $395,895 were contributed to the Water Utility Fund in 2014.
Sewer utility assets in the amount of $4,707 were contributed to the Sewer Utility Fund in 2014.
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF FIDUCIARY NET POSITIONStatement 9
AGENCY FUNDS
December 31, 2014
20142013
Assets:
Cash and investments$247,944$238,004
Due from developers10,21025,184
Total assets258,154263,188
Liabilities:
Escrow deposits payable146,000136,000
Accounts payable9,4221,963
Due to developers102,732125,225
Total liabilities258,154263,188
Net position:
Unrestricted$0$0
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Oak Park Heights, Minnesota operates under the State of Minnesota Statutory Plan A form of
government. The governing body consists of a five member City council elected by voters of the City.
The financial statements of the City of Oak Park Heights, Minnesota 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 accounting policies.
A.FINANCIAL REPORTING ENTITY
As required by generally accepted accounting principles, the financial statements of the reporting entity
include those of the City (the primary government) and its component units, entities for which the City
is considered to be financially accountable. Blended component units, although legally separate
entities, are, in substance, part of the City's operations and so data from these units are combined with
data of the primary government.
BLENDED COMPONENT UNIT
The EDA of the City of Oak Park Heights, Minnesota is a separate legal entity. The EDA board
members are substantially the same as the City council in that four of the five board members are
council members and the fifth board member is the City finance director. Separate financial statements
are not prepared by the EDA.
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
business-type activity is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or business-type activity. 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 business-type activity and 2) grants and contributions that are restricted
to meeting the operational or capital requirements of a particular function or business-type activity.
Taxes and other items not included among program revenues are reported instead as general revenues.
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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. The City’s only fiduciary funds are agency funds. Agency
funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of
operations.
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:
TheGeneral 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.
TheTIF District #2 Special Revenue Fund is used to account for all the activity within that district.
TheG.O. CIP Refunding Bonds of 2012A Debt Service Fund is used to account for the
accumulation of resources for debt service payments on the 2012A bonds. The fund also holds
assets which will be used to refund the G.O. Capital Improvement Bonds of 2008 in the year 2016.
TheG.O. Capital Improvement Bonds of 2014A Debt Service Fund is used to account for the
accumulation of resources for debt service payments on the 2014A bonds.
TheCapital Revolving Capital Project Fund is used to account for monies set aside for various
capital improvements.
TheStreet Reconstruction Capital Project Fund accounts for the accumulation of funds to be used
for future street reconstruction projects.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
TheRenewal and Replacement Capital Project Fund is used to account for assets depreciated from
the utility fund and water and sanitary sewer departments. Funds are used to renew or replace
water and sanitary sewer system assets.
The City reports the following major proprietary funds:
The Water Utility Fund accounts for assets, liabilities, revenues and expenditures for water utility
operations.
The Sewer Utility Fund accounts for assets, liabilities, revenues and expenditures for sewer utility
operations.
The Storm Sewer Utility Fund accounts for assets, liabilities, revenues and expenditures for storm
sewer utility operations.
Additionally, the City reports the following fund type:
Agency Funds account for the assets of various developers held by the City as an agent.
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.
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 enterprise funds are charges to customers for sales and services. Operating expenses for enterprise
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.BUDGETS
Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual
appropriated budgets are adopted for the General Fund, but not for Special Revenue Funds. Budgeted
expenditure appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed
by the City because it is at present not considered necessary to assure effective budgetary control or to
facilitate effective cash management.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
E.LEGAL COMPLIANCE - BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Administrator submits to the City Council a proposed operating budget for the fiscal
year commencing the following January 1. The operating budget includes proposed
expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmental basis and can
be expended by each department based upon detailed budget estimates for individual
expenditure accounts.
4. The department heads are authorized to transfer appropriations under $500 within any
department budget. Additional interdepartmental or interfund appropriations and deletions are
or may be authorized by the City Council with fund (contingency) reserves or additional
revenues.
5. Formal budgetary integration is employed as a management control device during the year for
the General Fund.
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies
for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to
determine and calculate user charges. These debt service and budget amounts represent
general obligation bond indenture provisions and net income for operation and capital
maintenance and are not reflected in the financial statements.
7. A capital improvement program is reviewed annually by the City Council for the Capital
Project Funds. However, appropriations for major projects are not adopted until the actual bid
award of the improvement. The appropriations are not reflected in the financial statements.
8. Expenditures may not legally exceed budgeted appropriations at the total fund level.
Monitoring of budgets is maintained at the expenditure category level (i.e., personal services;
material and supplies; contractual services; capital outlay) within each department. All
amounts over budget have been approved by the City council through the disbursement
approval process.
9. The City Council may authorize transfer of budgeted amounts between City funds.
F.CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in
authorized investments. Earnings from investments are allocated to individual funds on the basis of the
fund's equity in the cash and investment pool.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Investments are stated at fair value, based upon quoted market prices, except for investments in 2a7-like
external investment pools, which are stated at amortized cost and approximate fair value. Investment
income is accrued at the balance sheet date.
For purposes of the statement of cash flows the Enterprise Funds consider all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents. All of the cash and
investments allocated to the Enterprise Funds have original maturities of 90 days or less. Therefore the
entire balance in the fund is considered cash equivalents.
G.RECEIVABLES AND PAYABLES
Property taxes and special assessments (see notes 1H and I) have been reported net of estimated
uncollectible accounts. Because utility bills are considered liens on property, no estimated uncollectible
amounts are established. Uncollectible amounts are not material for other receivables and have not
been reported.
H.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.
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 and State credits received
by the City in July, December and January are recognized as revenue for the current year. Taxes
collected by the County by December 31 (remitted to the City the following January) and taxes and
credits not received at year end are classified as delinquent and due from County taxes receivable. The
portion of delinquent taxes not collected by the City in January is fully offset by deferred inflows of
resources because they are not available to finance current expenditures.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
I.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. Collection of
annual installments (including interest) is handled by the County Auditor in the same manner as
property taxes. 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. Generally, the City will collect the full amount of its special
assessments not adjusted by City Council or court action. 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. All remaining
delinquent and deferred assessments receivable in governmental funds are offset by deferred inflows of
resources.
J.INVENTORIES
The original cost of materials and supplies has been recorded as expenditures at the time of purchase.
The City does not maintain material amounts of inventories of goods and supplies.
K.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 expenditure/expense at time of consumption.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
L.CAPITAL ASSETS
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements. Capital assets are defined by the City as assets
with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in
excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased
or constructed. Donated capital assets are recorded at estimated fair market value at the date of
donation.
In the case of the initial capitalization of general infrastructure assets (i.e., those reported by
governmental activities) the City chose to include all such items regardless of their acquisition date.
These assets are reported at historical cost.
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.For the year ended December 31, 2014, no interest was
capitalized in connection with construction in progress.
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:
Buildings and structures 20 - 50 years
Machinery and equipment 3 - 20 years
Distribution and collection systems 50 years
Streets 25 years
Storm sewers 50 years
Pathways 20 years
M.COMPENSATED ABSENCES
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay
benefits. All vacation pay and accumulated vested sick leave benefits 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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
N.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
and discounts are amortized over the life of the bond.
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.
O.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 form, such as prepaid items.
Restricted - consists of amounts related to externally imposed constraints established by creditors,
grantors or contributors; or constraints imposed by state statutory provisions.
Committed - consists of internally imposed constraints. These constraints are established by
Resolution of City Council.
Assigned - consistsof internally imposed constraints for the specific purpose of the City’s intended
use. Pursuant to the City’s Fund Balance Policy, the Finance Director and/or City Administrator
have been authorized to assign fund balance that reflects the City’s intended use of those funds.
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 resources 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.
P.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 loan receivable or payable which offsets the movement of cash between funds.
All other interfund transactions are reported as transfers.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Q.RECLASSIFICATIONS
Certain amounts presented in the prior year data have been reclassified in order to be consistent with the
current year’s presentation.
R.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.
S.COMPARATIVE TOTALS
The basic financial statements and combining and individual fund financial statements include certain
prior-year summarized comparative information in total but not at the level of detail required for a
presentation in conformity with generally accepted accounting principles. Accordingly, such
information should be read in conjunction with the City’s financial statements for the year ended
December 31, 2013, from which the summarized information was derived.
T.DEFERRED OUTFLOWS/INFLOWS 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. The City has no items that
qualify for reporting in this category.
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 of resources (revenue) until that time. The City has one type of item, which arises only
under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly,
the item, unavailable revenue, is reported only in the governmental fund balance sheet. The
governmental funds report unavailable revenues from the following sources: property taxes, special
assessments, land held for resale, and unavailable grant revenue.
Note 2 DEPOSITS AND INVESTMENTS
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City
Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral
includes the following:
a)United States government treasury bills, treasury notes, treasury bonds;
b)Issues of United States government agencies and instrumentalities as quoted by a recognized
industry quotation service available to the government entity;
c)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;
d)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;
e)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
f)Time deposits that are fully insured by any Federal agency.
At December 31, 2014 the carrying amount of the City’s deposits with financial institutions was
$4,588,916.
Custodial credit risk – Deposits. Custodial credit risk is the risk that in the event of a bank failure, the
City’s deposits may not be returned to it. State statutes require that insurance, surety bonds or collateral
protect all City deposits. The market value of collateral pledged must equal 110% of deposits not
covered by insurance or bonds. As of December 31, 2014, the bank balance of the City’s deposits was
$4,449,788, all of which was either insured by the Federal Deposit Insurance Corporation (FDIC) or
covered by perfected pledged collateral held in the City’s name.
B. INVESTMENTS
Minnesota Statutes authorize 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 registered under the Federal Investment Company Act of 1940 and
whose only investments are in securities described in (a) above, general obligation tax-exempt
securities, or repurchase or reverse repurchase agreements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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.
d) Bankers’ acceptance of United States banks eligible for purchase by the Federal Reserve System.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the
highest quality, and maturing in 270 days or less.
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers;
or, a bank qualified as a depositor.
g) 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.
As of December 31, 2014 the City had the following investments and maturities:
Investment Maturities (in Years)
FairLess
Investment TypeRatingValueThan 11-56-10
Federal National Mortgage Assn. NotesAaa$5,001,408$ - $5,001,408$ -
Federal Farm Credit BankAaa500,530 - - 500,530
Federal Home Loan Bank NotesAaa3,281,612 - 1,098,4782,183,134
Brokered certificates of depositNR5,868,5344,023,7271,406,584438,223
External investment pool - 4M FundNR5,867,8535,867,853 - -
Total$20,519,937$9,891,580$7,506,470$3,121,887
NR - Not RatedTotal investments$20,519,937
Deposits4,588,916
Petty cash100
Total cash and investments$25,108,953
The Minnesota Municipal Money Market Fund (4M Fund) is regulated by Minnesota Statutes and the Board
of Directors of the League of Minnesota Cities and is an external investment pool not registered with the
Securities Exchange Commission (SEC) that follows the same regulatory rules of the SEC under rule 2a7.
The fair value of the position in the pool is the same as the value of the pool shares.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Following is a reconciliation of the City’s cash and investment balances as of December 31, 2014:
Cash and investments:
Governmental and business-type (Statement 1)$19,859,601
Fiduciary (Statement 9)247,944
Cash with escrow agent5,001,408
Total cash and investments$25,108,953
C. INVESTMENT RISKS
Custodial credit risk – investments – For investments in securities, custodial credit risk is the risk that in
the event of failure of the counterparty to a transaction, the City will not be able to recover the value of
its investment securities that are in the possession of an outside party. Investments in investment pools
and 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. The City’s investment policy does not
address custodial risk. However, investments in securities are held by the City’s broker-dealer of which
$2,000,000 is insured through SIPC. Each broker-dealer has provided additional protection by
providing additional insurance. This insurance is subject to aggregate limits applied to all of the
broker-dealer’s accounts.
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. The City’s investment policy requires the City to
diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of assets
in a specific maturity. The policy also states the City’s investment portfolio will remain sufficiently
liquid to enable the City to meet all operating requirements which might be reasonably anticipated.
Credit risk – 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. Minnesota Statutes limit the City’s investments to
direct obligations or obligations under the Federal Investment Company Act of 1940 that receive the
highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency,
and all of the investments have a final maturity of thirteen months or less; shares of a Minnesota joint
powers investment trust whose investments are restricted to securities described in 118.04; general
obligations of any state or local government with taxing powers which is rated “A” or better; revenue
obligations of any state or local government with taxing powers which is rated “AA” or better; general
obligations of the Minnesota Housing Finance Agency rated “A” or better; bankers’ acceptances of
United States banks eligible for purchase by the Federal Reserve System; commercial paper issued by
United States corporations or their Canadian subsidiaries, rated of the highest quality category by at
least two nationally recognized rating agencies, and maturing in 270 days or less; guaranteed
investment contracts guaranteed by a United States commercial bank, domestic branch of a foreign
bank or a United States insurance company, and with the credit quality in one of the top two highest
categories; repurchase or reverse purchase agreements and securities lending agreements with financial
institutions qualified as a “depository” by the government entity, with banks that are members of the
Federal Reserve System with capitalization exceeding $10,000,000, that are a primary reporting dealer
in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota
securities brokers-dealers. The City’s investment policy does not place further restrictions on
investment options.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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 amount the
City may invest in any one issuer. As of December 31, 2014, more than 5% of the City’s cash and
investments are in the following governmental agencies: Federal National Mortgage Association (20%)
and Federal Home Loan Bank (13%).
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2014 are as
follows:
Storm Sewer
Utility
GeneralFundTotal
Delinquent property taxes$31,133$ - $31,133
Deferred special assessments - 10,89110,891
Total$31,133$10,891$42,024
Note 4 UNAVAILABLE REVENUE
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. As of the end of the current fiscal year,
the various components of unavailable revenue reported in the governmental funds were as follows:
Unavailable
Property Special Land HeldGrant
TaxesAssesmentsfor ResaleRevenueTotal
Major funds:
General Fund$62,667$ - $ - $ - $62,667
Capital Revolving Fund - 510,041 - 360,276870,317
Nonmajor funds - - 126,200 - 126,200
Total unavailable revenue$62,667$510,041$126,200$360,276$1,059,184
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2014 was as follows:
BeginningEnding
BalanceIncreasesDecreasesAdjustmentsBalance
Governmental activities:
Capital assets, not being depreciated:
Land$2,239,364$341,707$ - $ - $2,581,071
Construction in progress1,118,7974,543,267(818,236) - 4,843,828
Total capital assets, not being depreciated3,358,1614,884,974(818,236)07,424,899
Capital assets, being depreciated:
Buildings and structures7,563,661 - - 36,4587,600,119
Other improvements1,544,368 - - (38,440)1,505,928
Machinery and equipment573,644 - - (55,730)517,914
Furniture and fixtures418,50755,000(16,258)57,712514,961
Infrastructure12,928,12711,151 - - 12,939,278
Total capital assets, being depreciated23,028,30766,151(16,258)023,078,200
Less accumulated depreciation for:
Buildings and structures637,875182,179 - 1,827821,881
Other improvements305,90546,537 - (1,827)350,615
Machinery and equipment312,39748,320 - - 360,717
Furniture and fixtures195,70745,170(16,056) - 224,821
Infrastructure6,712,845424,704 - - 7,137,549
Total accumulated depreciation8,164,729746,910(16,056)08,895,583
Total capital assets being depreciated - net14,863,578(680,759)(202)014,182,617
Governmental activities capital assets - net$18,221,739$4,204,215($818,438)$0$21,607,516
BeginningEnding
BalanceIncreasesDecreasesBalance
Business-type activities:
Capital assets, not being depreciated:
Land$937,919$ - $ - $937,919
Construction in progress72,4768,602(81,078) -
Total capital assets, not being depreciated1,010,3958,602(81,078)937,919
Capital assets, being depreciated:
Buildings and structures2,047,665 - - 2,047,665
Machinery and equipment448,71546,705 - 495,420
Infrastructure7,311,429449,005 - 7,760,434
Total capital assets, being depreciated9,807,809495,710010,303,519
Less accumulated depreciation for:
Buildings and structures810,01672,542 - 882,558
Machinery and equipment217,51623,112 - 240,628
Infrastructure3,186,157157,765 - 3,343,922
Total accumulated depreciation4,213,689253,41904,467,108
Total capital assets being depreciated - net5,594,120242,29105,836,411
Business-type activities capital assets - net$6,604,515$250,893($81,078)$6,774,330
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government$205,685
Public safety27,454
Public works391,471
Recreation122,300
Total depreciation expense - governmental activities$746,910
Business-type activities:
Water$168,997
Sewer84,422
Total depreciation expense - business-type activities$253,419
Note 6 LONG-TERM DEBT
The City issues general obligation bonds to provide funds for the acquisition and construction of major capital
facilities. The reporting entity’s long-term debt is segregated between the amounts to be repaid from
governmental activities and amounts to be repaid from business-type activities.
As of December 31, 2014, the long-term debt of the financial reporting entity consisted of the following:
FinalAuthorized
Issue Maturity Interest AndOutstanding
DateDateRateIssued12/31/14
Governmental activities:
Improvement bonds:
G.O. Capital Improvement Bonds, Series 2008A06/15/0812/15/282.5 - 4.4$6,300,000$5,305,000
G.O. Capital Improvement Bonds, Series 2009A09/15/0912/15/191.2 - 3.551,195,000665,000
G.O. CIP Refunding Bonds, Series 2012A12/01/1212/15/282.0 - 2.155,140,0005,140,000
G.O. Capital Improvement Bonds, Series 2014A06/05/1412/15/252.0 - 3.03,775,0003,775,000
Bond premium241,808
Compensated absences payable215,029
Total governmental activities15,341,837
Business-type activities:
Compensated absences payable32,935
Total City indebtedness$15,374,772
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Annual debt service requirements to maturity are as follows:
YearGovernmental Activities
Ending2008A G.O. Cap Imp Bonds2009A G.O. Cap Imp Bonds2014A G.O. Cap Imp Bonds2012A G.O. CIP Ref. BondsTotal
December 31,PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest
2015$215,000$215,418$120,000$20,858$ - $104,758$165,000$85,100$500,000$426,134
20165,090,000208,000125,00017,678 - 104,758400,00081,8005,615,000412,236
2017 - - 130,00014,115305,000104,758400,00073,800835,000192,673
2018 - - 140,00010,084320,00098,658400,00065,800860,000174,542
2019 - - 150,0005,325340,00092,258375,00057,800865,000155,383
2020 - - - - 360,00085,458375,00050,300735,000135,758
2021 - - - - 380,00078,258350,00042,800730,000121,058
2022 - - - - 400,00070,658350,00035,800750,000106,458
2023 - - - - 430,00062,658325,00028,800755,00091,458
2024 - - - - 455,00054,058325,00019,050780,00073,108
2025 - - - - 495,00044,958310,0009,300805,00054,258
2026 - - - - 525,00035,058 - - 525,00035,058
2027 - - - - 545,00024,295 - - 545,00024,295
2028 - - - - 585,00012,578 - - 585,00012,578
Total$5,305,000$423,418$665,000$68,060$5,140,000$973,169$3,775,000$550,350$14,885,000$2,014,997
It is not practicable to determine the specific year for payment of accrued compensated absences.
Change in Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2014, was as follows:
BalanceBalanceDue Within
01/01/14AdditionsReductions12/31/14One Year
Governmental Activities:
Bonded debt:
Improvement bonds$6,285,000$3,775,000($315,000)$9,745,000$500,000
CIP refunding bonds5,140,000 - - 5,140,000 -
Bond premium145,441111,689(15,322)241,808 -
Compensated absences222,23381,559(88,763)215,02945,835
Total governmental activities$11,792,674$3,968,248($419,085)$15,341,837$545,835
Business-Type Activities:
Compensated absences$20,452$12,494($11)$32,935$3,041
Total business-type activities$20,452$12,494($11)$32,935$3,041
For governmental activities, compensated absences are generally liquidated by the General Fund. All long-
term bonded indebtedness outstanding at December 31, 2014 is backed by the full faith and credit of the
City, including improvement bond issues. Delinquent taxes receivable at December 31, 2014 were $62,667.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Crossover Refunding – 2012A Bonds
On December 1, 2012, the City issued $5,140,000 in General Obligation Capital Improvement Plan
Crossover Refunding Bonds, Series 2012A with interest rates between 2.00% and 2.15% to advance refund
$4,860,000 of outstanding 2008A General Obligation Capital Improvement Bonds with interest rates
between 3.70% and 4.40%. The net proceeds were used to purchase U.S. government securities in the
amount of $5,179,790. Those securities were deposited in an irrevocable trust with an escrow agent to
provide for the interest on the refunding bonds before the crossover date and called principal on the
refunded bonds on December 15, 2016.
The City is responsible for the debt service of the refunded bonds through the crossover date (December 15,
2016) and the debt service of the refunding bonds after the crossover date. The debt service of the
refunding bonds before the crossover date is payable from the escrow account. Assets held with the escrow
agent total $5,001,408 at December 31, 2014.
The financial statements present each bond issue and the escrow account assets pursuant to GASB No. 7.
The effect on the financial statements is to report greater debt than, in substance, the City will be responsible
for paying.
The Refunding Bonds of 2012A are crossover refunding bonds whereby the City and the escrow agent are
responsible for the debt service payments as follows:
Debt Service Commitment
Year EndingRefundedRefundingEscrow
December 31,Bonds TotalBonds TotalAccountCity
2015$430,418$104,758$104,758$430,418
20165,298,000104,7584,964,758438,000
2017 - 409,758 - 409,758
2018 - 418,658 - 418,658
2019 - 432,258 - 432,258
2020 - 445,458 - 445,458
2021 - 458,258 - 458,258
2022 - 470,658 - 470,658
2023 - 492,658 - 492,658
2024 - 509,058 - 509,058
2025 - 539,958 - 539,958
2026 - 560,058 - 560,058
2027 - 569,295 - 569,295
2028 - 597,578 - 597,578
Total$5,728,418$6,113,169$5,069,516$6,772,071
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Revenues Pledged
Revenue PledgedCurrent Year
Percent ofRemainingPrincipalPledged
Use ofTotalTerm ofPrincipaland InterestRevenue
Bond IssueProceedsTypeDebt ServicePledgeand InterestPaidReceived
2008ACity hall constructionProperty taxes100%2009 - 2028$5,728,418$422,018$420,000
2009ACity hall constructionProperty taxes100%2010 - 2019$733,060$138,560$139,000
Special assessments62%
Water fund
contribution
27%
Proptery taxes
2014AStreet reconstruction11%2015 - 2025$4,325,530$45,859$218,041
The City will begin making payments on the 2012A Bonds in 2017. Beginning then, the property taxes
pledged for the 2008A Bonds will be applied to the 2012A Bonds, as the 2008A Bonds will have been
refunded.
Note 7 PENSION PLANS
A. PERA DEFINED BENEFIT PLAN
PLAN DESCRIPTION
All full-time and certain part-time employees of the City are covered by defined benefit plans administered
by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General
Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF) which are
cost-sharing, multiple-employer retirement plans. These plans are established and administered in
accordance with Minnesota Statutes, Chapters 353 and 356.
GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. All new members must participate in the
Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute
are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon
death of eligible members. Benefits are established by state statute, and vest after five years of credited
service. The defined retirement benefits are based on a member’s highest average salary for any five
successive years of allowable service, age, and years of credit at termination of service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for GERF and PEPFF. That report may be obtained on the internet at
www.mnpera.org, by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by
calling 651-296-7460 or 1-800-652-9026.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes
are established and amended by the state legislature. The City makes annual contributions to the
pension plans equal to the amount required by state statutes. GERF Basic Plan members and
Coordinated Plan members were required to contribute 9.1% and 6.25%, respectively, of their annual
covered salary in 2014. PEPFF members were required to contribute 10.2% of their annual covered
salary in 2014. The City was required to contribute the following percentages of annual covered
payroll in 2014: 11.78% for Basic Plan members, 7.25% for Coordinated Plan members, and 15.3% for
PEPFF members. The City’s contributions to the Public Employees Retirement Fund for the years
ending December 31, 2014, 2013 and 2012 were $52,459, $53,186, and $52,387, respectively. The
City’s contributions to the Public Employees Police and Fire Fund for the years ending December 31,
2014, 2013 and 2012 were $126,708, $116,026, and $108,683, respectively. The City’s contributions
were equal to the contractually required contributions for each year as set by state statute. Contribution
rates will increase on January 1, 2015 in the Coordinated Plan (6.5% for members and 7.5% for
employers) and in the Police and Fire Fund (10.8% for members and 16.2% for employers).
B. DEFINED CONTRIBUTION PLAN
The City administrator does not participate in PERA, but is covered by a defined contribution plan
administered by the ICMA Retirement Corporation. The Plan is a tax qualified plan under Section 457
of the Internal Revenue Code and all contributions by or on behalf of the employee are tax deferred
until time of withdrawal.
The City is required to contribute 10% of the annual base salary. Plan provisions and contribution
requirements are established and may be amended by the City council. Employer contributions were
$11,488 for the year ended December 31, 2014.
Note 8 OTHER POST-EMPLOYMENT BENEFITS
A.PLAN DESCRIPTION
In addition to providing the pension benefits described in Note 6, the City provides post-employment
health care benefits (as defined in paragraph B) for retired employees through a single-employer
defined benefit plan. The City of Oak Park Heights, Minnesota OPEB plan is administered by the City.
The authority to provide these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a,
and 299A.465. The benefits, benefit levels, employee contributions and employer contributions are
governed by the City and can be amended by the City through its personnel manual and collective
bargaining agreements with employee groups. The Plan is not accounted for as a trust fund, an
irrevocable trust has not been established to account for the Plan. The Plan does not issue a separate
report.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
B. BENEFITS PROVIDED
Retirees
The City is required by State Statute to allow retirees to continue participation in the City’s group health
insurance plan if the individual terminates service with the City through service retirement or disability
retirement. Eligibility for benefits is the earlier of age 55 and 3 years of service or age 65.
All health care coverage is provided through the City’s group health insurance plans. The retiree is
required to pay 100% of their premium cost for the City-sponsored group health insurance plan in
which they participate. The premium is a blended rate determined on the entire active and retiree
population. Since the projected claims costs for retirees exceed the blended premium paid by retirees,
the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those
afforded to active employees. Upon a retiree reaching age 65 years of age, Medicare becomes the
primary insurer and the City’s plan becomes secondary.
C. PARTICIPANTS
As of the January 1, 2012 actuarial valuation, participants consisted of:
Retirees and beneficiaries currently
purchasing health insurance through the City2
Active employees19
Total21
Participating employers1
D. FUNDING POLICY
The additional cost of using a blended rate for actives and retirees is currently funded on a pay-as-you-
go basis. The City Council may change the funding policy at any time.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
E. ANNUAL OPEB COSTS AND NET OPEB OBLIGATION
The City’s annual other post employment benefit (OPEB) cost is calculated based on the annual
required contribution (ARC) of the employer, an amount actuarially determined in accordance with the
parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed 30 years. The net OPEB obligation as of
December 31, 2014, was calculated as follows:
Annual required contribution (ARC)$35,996
Interest on net OPEB obligation6,588
Adjustment to ARC(9,524)
Annual OPEB cost33,060
Contributions made during the year(11,520)
Increase in net OPEB obligation21,540
Net OPEB obligation - beginning of year164,705
Net OPEB obligation - end of year$186,245
The net OPEB obligation is allocated as follows:
Governmental activities$169,016
Business-type activities17,229
$186,245
For governmental activities, the net OPEB obligation is generally liquidated by the General Fund.
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net
OPEB obligation for the previous three years was as follows:
Percentage of
Fiscal YearAnnual OPEBEmployer Annual OPEB CostNet OPEB
EndedCostContributionsContributedObligation
December 31, 2012$31,683$9,74230.7%$142,948
December 31, 201332,37410,61832.8%164,705
December 31, 201433,06011,52034.8%186,245
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
F. FUNDED STATUS AND FUNDING PROGRESS
The City currently has no assets that have been irrevocably deposited in a trust for future health
benefits; therefore, the actuarial value of assets is zero. The funded status of the plan as of the most
recent actuarial valuation date was as follows:
Unfunded
ActuarialActuarialUAAL as a
ActuarialActuarialAccruedAccruedFundedCoveredPercentage of
ValuationValue of AssetsLiability (AAL)*Liability (UAAL)RatioPayrollCovered Payroll
Date(a)(b)(b-a)(a/b)(c) ( (b-a) / c)
January 1, 2012$0$290,381$290,3810.0%$1,648,74817.6%
*Using the Projected Unit Credit Actuarial cost method.
G. ACTUARIAL METHODS AND ASSUMPTIONS
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality and the health care cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions (ARC) of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates are
made about the future. The schedule of funding progress, presented as required supplementary
information following the notes to financial statements, presents multi-year trend information that
shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of
each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are
designed to reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial
value of assets, consistent with the long-term perspective of the calculations.
In the January 1, 2012 actuarial valuation, the Projected Unit Credit Actuarial cost method was used.
The actuarial assumptions included a 4.0% investment rate of return (net of administrative expenses),
an inflation rate of 3.0% and an initial annual health care cost trend rate of 9% reduced by 0.4% each
year to arrive at an ultimate health care cost trend rate of 5.0%. The actuarial value of assets was $0.
The Plan’s unfunded actuarial accrued liability is amortized as a level dollar amount over a 30 year
open period. The remaining amortization period at December 31, 2014, was 25 years.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 9 INTERFUND TRANSFERS
Transfers In
Major Funds
Street Renewal and Nonmajor
GeneralReconstructionReplacement Governmental
FundFundFund FundsTotal
Transfers out:
Governmental activities:
General Fund$ - $343,295$ - $1,000,578$1,343,873
TIF District #2 - - - 5,0495,049
Renewal and Replacement Fund2,4671,826,310 - - 1,828,777
Nonmajor Governmental Funds - 491,191 - - 491,191
Business-type activities:
Water Utility Fund - - 124,378118,252242,630
Sewer Utility Fund - - 127,78738,938166,725
Storm Sewer Utility Fund - - - 3,4173,417
Total transfers$2,467$2,660,796$252,165$1,166,234$4,081,662
During 2014, the City made routine interfund transfers to accumulate resources to be used for capital
improvements and to fund debt service expenditures.
Note 10 CONTINGENCIES AND COMMITMENTS
A.ST. CROIX RIVER CROSSING PROJECT
During 2012 the State of Minnesota and Minnesota Department of Transportation (MNDOT) finalized
plans and received federal approval to construct an interstate bridge connecting Highway 36 in Oak
Park Heights and Houlton, Wisconsin. As a direct result of the MNDOT project, the City was obligated
to commit to relocate portions of its water, sewer and storm utility infrastructure along Highway 36 as
well as participate in other costs as a result of the Project. Accordingly, the City at the request of
MNDOT and the State of Minnesota has entered into agreements with MNDOT for the portions of the
impacted relocations or improvements and all related soft costs and expenses to the present utility
systems and for any related costs as a result of the Project in total. The estimated cost to the City for all
costs is anticipated to be a total cost of $322,106 and is dependent on the final timing to be determined
by MNDOT and their contractors.
B.FEDERAL AND STATE FUNDS
The City receives financial assistance from federal and state governmental agencies in the form of
grants. The disbursement of funds received under these programs generally requires compliance with
the terms and conditions specified in the grant agreements and are subject to audit by the grantor
agencies. Any disallowed claims resulting from such audits could become a liability of the applicable
fund. However, in the opinion of management, any such disallowed claims will not have a material
effect on any of the financial statements of the individual fund types included herein or on the overall
financial position of the City at December 31, 2014.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 11 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; and natural disasters.
Workers compensation coverage is provided through a pooled self-insurance program through the League of
Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject
to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers
Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not
subject to a deductible. The City’s workers compensation coverage is retrospectively rated. With this type of
coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if
any, is considered immaterial and not recorded until received or paid.
Property and casualty insurance coverage is 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
various amounts. The City retains risk for deductible portions. These deductibles are considered immaterial to
the financial statements.
Employee health and disability insurance is provided through commercial insurance. The City does not have a
deductible or yearly maximum on this 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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 12 FUND BALANCE
A.CLASSIFICATIONS
Definitions of fund balance classifications are included in Note 1.O. At December 31, 2014, a
summary of the governmental fund balance classifications are as follows:
G.O. CIP
RefundingG.O. CapitalCapitalRenewal andOther
TIFBonds ofImprovementStreetRevolvingReplacementGovernmental
General FundDistrict #22012ABonds of 2014ReconstructionFundFundFundsTotal
Nonspendable:
Prepaid items$80,806$ - $ - $ - $ - $ - $ - $ - $80,806
Restricted for:
Law enforcement - - - - - - - 13,30413,304
Tax increment - - - - - - - 49,86049,860
Debt service - - 5,016,684261,257 - - - 115,7675,393,708
Park improvements - - - - - - - 201,995201,995
Moelter Park improvements - - - - - - - 462,797462,797
Unspent bond proceeds - - - - 1,118,479 - - - 1,118,479
Total restricted005,016,684261,2571,118,47900843,7237,240,143
Assigned for:
Compensated absences159,000 - - - - - - - 159,000
Capital purposes - - - - - 95,7403,028,1385,038,7998,162,677
Street reconstruction - - - - 4,271,961 - - - 4,271,961
Economic development - - - - - - - 32,01932,019
Total assigned159,0000004,271,96195,7403,028,1385,070,81812,625,657
Unassigned3,663,001(377,266) - - - - - - 3,285,735
Total$3,902,807($377,266)$5,016,684$261,257$5,390,440$95,740$3,028,138$5,914,541$23,232,341
B.MINIMUM UNASSIGNED FUND BALANCE POLICY
The City Council has formally adopted a policy regarding the minimum unassigned fund balance for the
General Fund. The most significant revenue source of the General Fund is 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 states the City will maintain an unassigned fund balance in the General Fund for the
following purposes and in the following amounts:
For cash flow needs – an amount should be established equal to 45-55% of the subsequent
year’s budgeted operating expenditures.
For emergencies or contingencies (such as revenue shortfalls or unexpected budget over runs)
– an amount should be established equal to 10 – 15% of the ensuing year’s General Fund
operating expenditures.
At December 31, 2014, the unassigned fund balance of the General Fund was $3,663,001 which
sufficiently meets the cash flow and emergency needs described above.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 13 MAJOR TAXPAYER
The City has one major taxpayer, Xcel Energy. The total tax capacity value for this taxpayer represented
approximately 40.43% of the City's total tax capacity value for taxes payable in 2014.
Note 14 TAX INCREMENT DISTRICT
The City is the administrating authority for Tax Increment District 1-1 (Oakgreen Project). During 2010, the
City and the developer signed a $1,200,000 tax increment pay-as-you-go revenue note relating to this district.
The note is not a general obligation of the City and is payable solely from available tax increments.
Accordingly, the note is not reflected in the financial statements of the City. A summary of the note is as
follows:
Tax Increment Revenue Note, TIF 1-1 – issued in 2010 in the principal sum of $1,200,000 with an interest rate
of 6.90% per annum. Principal and interest payments shall be payable on each February 1 and August 1
following the date of the note to and including February 1, 2026. Payments are payable solely from available tax
increment, which shall mean 80% of the tax increment derived from the development property and received by
the City. The City shall have no obligation to pay unpaid balance of principal or accrued interest that may
remain after the final payment on February 1, 2026. At December 31, 2014 the principal amount outstanding on
the note was $1,200,000
Note 15 CONDUIT DEBT OBLIGATIONS
From time to time, the City has issued Rental Housing or Industrial Revenue Bonds to provide financial
assistance to private-sector entities for the acquisition and construction of rental housing, office space or a clinic
deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from
payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired
facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any
political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are
not reported as liabilities in the accompanying financial statements.
As of December 31, 2014, there were three series of Industrial Revenue Bonds outstanding. The principal
amount payable at December 31, 2014 was $93,205,000.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 16 OPERATING LEASES
The City leases space in and above its water tower. The space is used for antennas and other equipment necessary to
provide radio communications. Lease terms are as follows:
2014
LeaseAnnual LeaseExpirationRenewal
LocationLesseeAmountAdjustment Factor*DateOptions
58th and NorrellSprint PCS$35,184Greater of CPI or 5%9/20/20191 5-year term
*Amounts for future lease receipts are unavailable because they are based on the Consumer Price Index.
Note 17 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. 68Accounting and Financial Reporting for Pensions – an amendment of GASB Statement
27. The provisions of this Statement are effective for financial statements for periods beginning after June
15, 2014. Statement No. 68 requires governments providing defined benefit pensions to recognize their
long-term obligation for pension benefits as a liability for the first time.
Statement No. 71Pension Transition for Contributions Made Subsequent to the Measurement Date – an
amendment of GASB Statement No. 68. The provisions of this Statement should be applied simultaneously
with the provisions of Statement 68.
Statement No. 72 Fair Value Measurement and Application. The provisions of this Statement are effective
for financial statements for periods beginning after June 15, 2015.
The effect these standards may have on future financial statements is not determinable at this time, but it is
expected that Statements No. 68 and No. 71 will have a material impact.
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATIONStatement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUNDPage 1 of 4
For The Year Ended December 31, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
Variance
with Final
Budget -
2014 Actual Positive2013 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Revenues:
Property taxes$4,784,896$4,784,896$4,836,318$51,422$4,546,471
Abatement of property taxes - - (289,042)(289,042)(182,996)
Payment in lieu of taxes67,00067,00073,2456,24569,727
Total property taxes4,851,8964,851,8964,620,521(231,375)4,433,202
Intergovernmental:
PERA aid2,0402,0402,040 - 2,040
Police aid50,00050,00076,83926,83970,031
Recycling grant11,00011,00014,0743,0749,812
Safe and Sober grant12,00012,0008,393(3,607)13,686
Other public works grants - - 1,9371,9371,018
Total intergovernmental75,04075,040103,28328,24396,587
Licenses and permits51,47551,475137,54386,06890,910
Charges for services:
General government10,15010,15038,63328,483300,223
Administrative - Enterprise Fund4,2484,2484,248 - 4,180
Development charge35,00035,00041,9856,985 -
Total charges for services49,39849,39884,86635,468304,403
Fines and forfeits45,00045,00056,53711,53751,360
Investment income - - 73,41273,412(23,982)
Refunds and reimbursements105,000105,000105,153153135,364
Donations and contributions - - 200200500
Total revenues5,177,8095,177,8095,181,5153,7065,088,344
Expenditures:
General government:
Mayor and city council:
Current:
Personal services60,32060,32057,6752,64557,340
Materials and supplies500500135365807
Other services and charges42,23542,23529,43912,79622,312
Total mayor and city council103,055103,05587,24915,80680,459
City administration:
Current:
Personal services221,844221,844217,7544,090190,601
Materials and supplies2,3502,3502,1591912,196
Other services and charges49,57049,57043,7655,80538,687
Total City administration273,764273,764263,67810,086231,484
Legal:
Current:
Personal services30,00030,00026,4963,50417,079
General management and building:
Current:
Materials and supplies11,90011,9009,0532,8476,342
Other services and charges152,660152,660150,4482,212154,666
Total general management and building164,560164,560159,5015,059161,008
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATIONStatement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUNDPage 2 of 4
For The Year Ended December 31, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
Variance
with Final
Budget -
2014 Actual Positive2013 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Expenditures: (continued)
General government: (continued)
Elections:
Current:
Personal services$9,000$9,000$4,386$4,614$876
Materials and supplies500500620(120)126
Other services and charges1,5001,500973527948
Total elections11,00011,0005,9795,0211,950
Finance:
Current:
Personal services228,026228,026177,60450,422213,922
Materials and supplies3,4003,4001,2592,1411,391
Other services and charges42,77042,77028,64114,12934,050
Total finance274,196274,196207,50466,692249,363
Computer system:
Current:
Materials and supplies5,9005,9004,4561,4443,248
Other services and charges31,03031,03028,2802,75022,565
Total computer system36,93036,93032,7364,19425,813
Audit:
Current:
Personal services28,75028,75026,9031,84728,490
Insurance:
Current:
Other services and charges460,277460,277355,574104,703359,536
Assessing:
Current:
Personal services22,80022,80022,60819222,349
Planning and zoning:
Current:
Personal services30,00030,00023,8006,20032,190
Materials and supplies200200 - 200300
Other services and charges1,8001,8008001,000910
Total planning and zoning32,00032,00024,6007,40033,400
Engineering:
Current:
Other services and charges27,85027,85017,9919,85913,853
General contingency:
Current:
Other services and charges18,88318,88312,6456,23854,610
Total general government1,484,0651,484,0651,243,464240,6011,279,394
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATIONStatement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUNDPage 3 of 4
For The Year Ended December 31, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
Variance
with Final
Budget -
2014 Actual Positive2013 Actual
Amounts(Negative)Amounts
Budgeted Amounts
Expenditures: (continued)OriginalFinal
Public safety:
Police department:
Current:
Personal services$1,031,477$1,031,477$963,201$68,276$912,276
Materials and supplies63,45063,45049,64113,80950,332
Other services and charges225,146225,146204,67820,468194,918
Total police department1,320,0731,320,0731,217,520102,5531,157,526
Building inspections:
Current:
Personal services75,34475,34478,610(3,266)72,405
Materials and supplies2,3502,3501,0181,332896
Other services and charges21,72321,72314,0297,69413,203
Total building inspections99,41799,41793,6575,76086,504
Fire protection:
Current:
Materials and supplies2,0002,0002,000 - -
Other services and charges220,200220,200216,7203,480190,634
Total fire protection222,200222,200218,7203,480190,634
Civil defense:
Current:
Other services and charges3,1003,1003,589(489)1,075
Animal control:
Current:
Materials and supplies150150609067
Other services and charges1,5001,5001,3351651,335
Total animal control1,6501,6501,3952551,402
Total public safety1,646,4401,646,4401,534,881111,5591,437,141
Public works:
Street maintenance:
Current:
Personal services26,78226,78224,4662,31624,349
Materials and supplies14,85014,8509,3735,47712,107
Other services and charges31,64331,64331,6024123,541
Total street maintenance73,27573,27565,4417,83459,997
Snow removal:
Current:
Materials and supplies1,0001,000561439122
Other services and charges151,000151,000193,950(42,950)222,981
Total snow removal152,000152,000194,511(42,511)223,103
Sanitation:
Current:
Other services and charges197,800197,800197,801(1)198,045
Street lighting:
Current:
Other services and charges72,10072,10061,57710,52368,176
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATIONStatement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUNDPage 4 of 4
For The Year Ended December 31, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
Variance
with Final
Budget -
2014 Actual Positive2013 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Expenditures: (continued)
Public works: (continued)
Arborist:
Current:
Personal services$18,500$18,500$13,975$4,525$17,979
Materials and supplies1001001585226
Other services and charges300300 - 300202
Total arborist18,90018,90013,9904,91018,407
Tree removal and planting:
Current:
Other services and charges35,00035,00034,62237838,952
Total public works549,075549,075567,942(18,867)606,680
Parks and recreation:
Parks, playgrounds and rinks:
Current:
Personal services49,92049,92059,649(9,729)60,740
Materials and supplies19,00019,00024,367(5,367)22,746
Other services and charges85,43685,43665,77019,66652,270
Total parks and recreation154,356154,356149,7864,570135,756
Total expenditures3,833,9363,833,9363,496,073337,8633,458,971
Revenues over expenditures
1,343,8731,343,8731,685,442341,5691,629,373
Other financing sources (uses):
Sale of property - - 44,40044,4002,000
Transfers in - - 2,4672,467 -
Transfers out(1,343,873)(1,343,873)(1,343,873) - (1,868,160)
Total other financing sources (uses)(1,343,873)(1,343,873)(1,297,006)46,867(1,866,160)
Net change in fund balance$0$0388,436$388,436(236,787)
Fund balance - January 1, as previously reported 3,514,3713,669,633
Prior period adjustment - 81,525
Fund balance - January 1, restated3,514,3713,751,158
Fund balance - December 31$3,902,807$3,514,371
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS - RETIREE HEALTH PLAN
For The Year Ended December 31, 2014
UnfundedUAAL As A
ActuarialActuarialActuarialPercentage of
ActuarialValue ofAccruedLiabilityFundedCoveredCovered
ValuationAssetsLiability (AAL)*(UAAL)RatioPayrollPayroll
Date(a)(b)(b-a)(a/b)(c)( (b-a) / c)
January 1, 2012$0$290,381$290,3810.0%$1,648,74817.6%
January 1, 2009$0$452,765$452,7650.0%$1,600,00028.3%
*Using the Projected Unit Credit Actuarial cost method.
The first OPEB actuarial valuation was conducted as of January 1, 2009. There is no data available
prior to the first valuation.
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2014
Note A BUDGETS
The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted
in the United States of America. The legal level of budgetary control is at the department level for the General
Fund.
COMBINING AND INDIVIDUAL NONMAJOR
FUND FINANCIAL STATEMENTS
CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINING BALANCE SHEETStatement 11
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2014
With Comparative Totals For December 31, 2013
Totals
Nonmajor
SpecialDebtCapitalGovernmental Funds
AssetsRevenueServiceProject20142013
Cash and investments$145,086$115,458$5,695,804$5,956,348$5,753,979
Accrued interest receivable14530911,56212,01634,532
Accounts receivable - net - - 1001004,431
Due from developer - - - - 10,000
Land held for resale126,200 - - 126,200111,000
Total assets$271,431$115,767$5,707,466$6,094,664$5,913,942
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$50,048$ - $796$50,844$51,045
Due to other governments - - - - 31
Unearned revenue - - 3,0793,0792,932
Total liabilities50,04803,87553,92354,008
Deferred inflows of resources:
Unavailable revenue126,200 - - 126,200111,000
Fund balance:
Restricted63,164115,767664,792843,723956,687
Assigned32,019 - 5,038,7995,070,8184,792,247
Total fund balance95,183115,7675,703,5915,914,5415,748,934
Total liabilities, deferred inflows $271,431$115,767$5,707,466$6,094,664$5,913,942
of resources, and fund balance
CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 12
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
Totals
Special DebtCapitalNonmajor Governmental Funds
RevenueServiceProject20142013
Revenues:
Tax increment$125,120$ - $ - $125,120$106,924
Intergovernmental - - - - 4,624
Charges for services - - 35,18435,18433,509
Fines and forfeits6,348 - - 6,3485,248
Investment income1,8362,868124,302129,006(25,177)
Refunds and reimbursements - - 1,4001,400 -
Total revenues133,304 2,868 160,886 297,058 125,128
Expenditures:
Current:
General government100,649 - 70,848171,49799,497
Public safety506 - - 50611,962
Public works - - 14,65614,65621,629
Parks and recreation - - 13,10613,10616,305
Capital outlay - - 46,15146,151104,477
Debt service:
Principal - 315,000 - 315,000295,000
Interest - 245,578 - 245,578253,605
Total expenditures101,155 560,578 144,761 806,494 802,475
Revenues over (under) expenditures32,149 (557,710)16,125 (509,436)(677,347)
Other financing sources (uses):
Transfers in5,049559,000602,1851,166,2341,139,157
Transfers out - - (491,191)(491,191) -
Total other financing sources (uses)5,049 559,000 110,994 675,043 1,139,157
Net change in fund balance37,198 1,290 127,119 165,607 461,810
Fund balance - January 157,985114,4775,576,4725,748,9345,287,124
Fund balance - December 31$95,183$115,767$5,703,591$5,914,541$5,748,934
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEETStatement 13
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2014
With Comparative Totals For December 31, 2013
202 Forfeiture 204 Economic 205 TIF
Totals Nonmajor Special
and SeizureDevelopmentDistrict #1
Revenue Funds
Assets20142013
Cash and investments$13,283$31,955$99,848$145,086$80,091
Accrued interest receivable216460145314
Accounts receivable - - - - 4,431
Escrow deposit - - - - 10,000
Land held for resale - 126,200 - 126,200111,000
Total assets$13,304$158,219$99,908$271,431$205,836
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$ - $ - $50,048$50,048$36,820
Due to other governments - - - - 31
Total liabilities0050,04850,04836,851
Deferred inflows of resources:
Unavailable revenue - 126,200 - 126,200111,000
Fund balance:
Restricted13,304 - 49,86063,16426,661
Assigned - 32,019 - 32,01931,324
Total fund balance13,30432,01949,86095,18357,985
Total liabilities, deferred infows $13,304$158,219$99,908$271,431$205,836
of resources, and fund balance
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,Statement 14
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
202 Forfeiture 204 Economic 205 TIF Totals Nonmajor Special
and SeizureDevelopmentDistrict #1Revenue Funds
20142013
Revenues:
Tax increment$ - $ - $125,120$125,120$106,924
Confiscated property6,348 - - 6,3485,248
Investment income1326951,0091,836(873)
Total revenues6,480 695 126,129 133,304 111,299
Expenditures:
Current:
General government - - 100,649100,64991,637
Public safety506 - - 5064,831
Total expenditures506 0 100,649 101,155 96,468
Revenues over (under) expenditures5,974 695 25,480 32,149 14,831
Other financing sources (uses):
Transfers in0 0 5,0495,0490
Net change in fund balance5,974 695 30,529 37,198 14,831
Fund balance - January 17,33031,32419,33157,98543,154
Fund balance - December 31$13,304$32,019$49,860$95,183$57,985
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEETStatement 15
NONMAJOR DEBT SERVICE FUNDS
December 31, 2014
With Comparative Totals For December 31, 2013
526 G.O. 527 G.O.
CapitalCapital
ImprovementImprovement
Bonds of 2008Bonds of 2009Total Nonmajor Debt Service Funds
20142013
Assets
Cash and investments$95,262$20,196$115,458$113,484
Accrued interest receivable23376309993
Total assets$95,495 $20,272 $115,767 $114,477
Liabilities and Fund Balance
Liabilities$ - $ - $ - $ -
Fund balance:
Restricted95,49520,272115,767114,477
Total liabilities and fund balance$95,495 $20,272 $115,767 $114,477
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,Statement 16
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
526 G.O. Capital 527 G.O. Capital
ImprovementImprovement
Bonds of 2008Bonds of 2009
Total Nonmajor Debt Service Funds
20142013
Revenues:
Investment income$2,282$586$2,868$41
Expenditures:
Debt service:
Principal200,000115,000315,000295,000
Interest222,01823,560245,578253,605
Total expenditures422,018138,560560,578548,605
Revenues over (under) expenditures(419,736)(137,974)(557,710)(548,564)
Other financing sources (uses):
Issuance of bonds - - - -
Transfers in420,000139,000559,000548,000
Total other financing sources (uses)420,000139,000559,000548,000
Net change in fund balance2641,0261,290(564)
Fund balance - January 195,23119,246114,477115,041
Fund balance - December 31$95,495 $20,272 $115,767 $114,477
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2014
With Comparative Totals For December 31, 2013
401 Budgeted 712 Storm
Projects and Sewer Renewal
Equipment405 Park 407 Moelter 572 City Hall / Replacement
RevolvingDevelopmentParkImprovementsFund
Assets
Cash and investments$1,959,195$658,289$507,033$97,716$174,997
Accounts Receivable100 - - - -
Accrued interest receivable3,3731,3841,188196949
Total assets$1,962,668 $659,673 $508,221 $97,912 $175,946
Liabilities and Fund Balance
Liabilities:
Accounts payable$796$ - $ - $ - $ -
Unearned revenue - - - - -
Total liabilities796 0 0 0 0
Fund balance:
Restricted - 201,995462,797 - -
Assigned1,961,872457,67845,42497,912175,946
Total fund balance1,961,872 659,673 508,221 97,912 175,946
Total liabilities and fund balance $1,962,668 $659,673 $508,221 $97,912 $175,946
Statement 17
734 Water 771 Sanitary 773 AAE -
Tower735 Well 736 Sewer Sewer772 Water Storm Sewer
Totals Nonmajor Capital Project
RehabilitationRehabilitationRehabilitationConnectionConnectionConnection
Funds
20142013
$281,798$132,253$50,774$419,765$448,696$965,288$5,695,804$5,560,404
- - - - - - 100 -
449247988429001,93611,56233,225
$282,247 $132,500 $50,872 $420,607 $449,596 $967,224 $5,707,466 $5,593,629
$ - $ - $ - $ - $ - $ - $796$14,225
3,079 - - - - - 3,0792,932
3,079 0 0 0 0 0 3,875 17,157
- - - - - - 664,792815,549
279,168132,50050,872420,607449,596967,2245,038,7994,760,923
279,168 132,500 50,872 420,607 449,596 967,224 5,703,591 5,576,472
$282,247 $132,500 $50,872 $420,607 $449,596 $967,224 $5,707,466 $5,593,629
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
401 Budgeted 712 Storm
Projects and Sewer Renewal
Equipment405 Park 407 Moelter 572 City Hall / Replacement
RevolvingDevelopmentParkImprovementsFund
Revenues:
Intergovernmental$ - $ - $ - $ - $ -
Charges for services:
Rents - - - - -
Investment income35,13315,40613,1732,12811,024
Refunds and reimbursements1,400 - - - -
Total revenues36,53315,40613,1732,12811,024
Expenditures:
Current:
General government70,848 - - - -
Public safety - - - - -
Public works14,656 - - - -
Parks and recreation - 8,0415,065 - -
Capital outlay - 46,151 - - -
Total expenditures85,50454,1925,06500
Revenues over (under) expenditures(48,971)(38,786)8,1082,12811,024
Other financing sources (uses):
Transfers in469,134 - - - 81,628
Transfers out - - (91,500) - (399,691)
Total other financing sources (uses)469,1340(91,500)0(318,063)
Net change in fund balance420,163(38,786)(83,392)2,128(307,039)
Fund balance - January 11,541,709698,459591,61395,784482,985
Fund balance - December 31$1,961,872 $659,673 $508,221 $97,912 $175,946
Statement 18
734 Water 771 Sanitary 773 AAE -
Tower735 Well 736 Sewer Sewer772 Water Storm Sewer
Totals Nonmajor Capital Project
RehabilitationRehabilitationRehabilitationConnectionConnectionConnection
Funds
20142013
$ - $ - $ - $ - $ - $ - $ - $4,624
35,184 - - - - - 35,18433,509
3,9922,4871,0359,1399,76921,016124,302(24,345)
- - - - - - 1,400 -
39,1762,4871,0359,1399,76921,016160,88613,788
- - - - - - 70,8487,860
- - - - - - - 7,131
- - - - - - 14,65621,629
- - - - - - 13,10616,305
- - - - - - 46,151104,477
000000144,761157,402
39,1762,4871,0359,1399,76921,01616,125(143,614)
40,4799,0061,938 - - - 602,185591,157
- - - - - - (491,191) -
40,4799,0061,938000110,994591,157
79,65511,4932,9739,1399,76921,016127,119447,543
199,513121,00747,899411,468439,827946,2085,576,4725,128,929
$279,168 $132,500 $50,872 $420,607 $449,596 $967,224 $5,703,591 $5,576,472
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEETStatement 19
AGENCY FUNDS
December 31, 2014
With Comparative Totals For December 31, 2013
902 Developer 903 Developer
Deposit FundEscrow FundTotals - Agency Funds
20142013
Assets
Cash and investments$101,944$146,000$247,944$238,004
Due from developers10,210 - 10,21025,184
Total assets$112,154 $146,000 $258,154 $263,188
Liabilities
Escrow deposits payable$ - $146,000$146,000$136,000
Accounts payable9,422 - 9,4221,963
Due to developers102,732 - 102,732125,225
Total liabilities$112,154 $146,000 $258,154 $263,188
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIESStatement 20
AGENCY FUNDS
For The Year Ended December 31, 2014
BalanceBalance
January 1,December 31,
2014AdditionsDeletions2014
902 Developer Deposit Fund
Assets:
Cash and investments$102,004$98,699$98,759$101,944
Due from developers25,18410,21025,18410,210
Total assets$127,188$108,909$123,943$112,154
Liabilities:
Accounts payable$1,963$9,422$1,963$9,422
Due to developers125,22531,55454,047102,732
Total liabilities$127,188$40,976$56,010$112,154
903 Developer Escrow Fund
Assets:
s$136,000$10,000$ - $146,000
Cash and investment
Liabilities:
Escrow deposits payable$136,000$10,000$ - $146,000
Total Agency:
Assets:
Cash and investments$238,004$108,699$98,759$247,944
Due from developers25,18410,21025,18410,210
Total assets$263,188$118,909$123,943$258,154
Liabilities:
Escrow deposits payable$136,000$10,000$ - $146,000
Accounts payable1,9639,4221,9639,422
Due to developers125,22531,55454,047102,732
Total liabilities$263,188$50,976$56,010$258,154
STATISTICAL SECTION (UNAUDITED)
CITY OF OAK PARK HEIGHTS, MINNESOTA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2005200620072008
Governmental activities:
Net investment in capital assets$9,928,521$11,481,494$11,799,071$12,328,032
Restricted856,611899,708614,170235,559
Unrestricted8,213,51310,290,01810,950,97811,705,192
Total governmental activities net position$18,998,645$22,671,220$23,364,219$24,268,783
Business-type activities:
Net investment in capital assets$5,985,350$5,826,582$6,355,129$6,227,796
Unrestricted1,108,0691,382,1631,355,5641,165,205
Total business-type activities net position$7,093,419$7,208,745$7,710,693$7,393,001
Primary government:
Net investment in capital assets$15,913,871$17,308,076$18,154,200$18,555,828
Restricted856,611899,708614,170235,559
Unrestricted9,321,58211,672,18112,306,54212,870,397
Total primary government net position$26,092,064$29,879,965$31,074,912$31,661,784
Table 1
200920102011201220132014
$11,908,771$11,519,528$11,381,436$11,172,202$11,849,446$11,756,453
867,1031,234,8351,152,7891,007,208842,2101,355,960
12,164,92513,308,71213,958,68915,242,15715,826,32717,258,019
$24,940,799$26,063,075$26,492,914$27,421,567$28,517,983$30,370,432
$6,925,825$6,752,968$6,964,787$6,746,344$6,604,514$6,774,330
1,156,2081,166,8531,135,6791,279,8741,448,7881,746,016
$8,082,033$7,919,821$8,100,466$8,026,218$8,053,302$8,520,346
$18,834,596$18,272,496$18,346,223$17,918,546$18,453,960$18,530,783
867,1031,234,8351,152,7891,007,208842,2101,355,960
13,321,13314,475,56515,094,36816,522,03117,275,11519,004,035
$33,022,832$33,982,896$34,593,380$35,447,785$36,571,285$38,890,778
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2005200620072008
Expenses
Governmental activities:
General government$882,800$987,597$1,046,676$1,477,836
Public safety1,210,1791,226,0421,234,7691,347,164
Public works511,137755,989796,025796,532
Parks and recreation138,378152,899184,008224,426
Interest on long-term debt55,69543,96537,255138,399
Total governmental activities expenses2,798,1893,166,4923,298,7333,984,357
Business-type activities:
Water373,996398,766387,766405,965
Sanitary sewer560,876661,367606,458670,661
Storm sewer34,15065,14934,27759,115
Sanitation164,572147,565153,848 -
Total business-type activities expenses1,133,5941,272,8471,182,3491,135,741
Total primary government expenses$3,931,783$4,439,339$4,481,082$5,120,098
Program revenues
Governmental activities:
Charges for services:
Licenses and permits$365,512$306,266$155,820$203,041
Inspections - City of Bayport84,719 - - -
Administrative - Enterprise Fund94,14064,46563,20062,040
Direct charges to developers139,191938,298244,895 -
Connection charges18,326780,14134,595 -
Park fees22,9521,004,240 - -
Refunds and reimbursements106,569155,080105,832153,267
Other activities144,559116,793151,00284,905
Operating grants and contributions88,22974,105142,87990,548
Capital grants and contributions62,686165,39711,32410,091
Total governmental activities program revenues1,126,8833,604,785909,547603,892
Business-type activities:
Charges for services:
Water423,876502,407482,100475,658
Sanitary sewer705,456767,207679,821656,809
Storm sewer73,54674,17373,94274,257
Sanitation96,85997,26697,764494
Operating grants and contributions - - - -
Capital grants and contributions - - - -
Total business-type activities
program revenues1,299,7371,441,0531,333,6271,207,218
Total primary government program revenues$2,426,620$5,045,838$2,243,174$1,811,110
Table 2
Page 1 of 2
200920102011201220132014
$1,356,038$1,575,297$1,381,589$1,455,359$1,601,402$1,663,866
1,364,7341,407,1611,411,6901,431,5941,497,7651,565,544
957,308980,630999,4731,128,2491,080,4371,020,664
211,795201,716239,100248,243269,929285,877
262,586280,548275,196377,713463,537463,217
4,152,4614,445,3524,307,0484,641,1584,913,0704,999,168
434,577466,218472,040470,266468,932477,771
680,468740,184746,656668,588695,817694,406
43,337108,46748,36043,90458,23946,393
- - - - - -
1,158,3821,314,8691,267,0561,182,7581,222,9881,218,570
$5,310,843$5,760,221$5,574,104$5,823,916$6,136,058$6,217,738
$100,074$197,181$131,081$163,986$90,910$137,543
- - - - -
64,40066,42069,4253,8304,1804,248
- - - - - -
5,419147,09818,824 - - -
- 241,440 - - - -
112,856117,735114,847125,243108,83890,109
112,161180,639107,860102,320390,340178,687
88,187145,04896,402112,91299,171101,443
688,97576,97015,94324,131341,9911,121,174
1,172,0721,172,531554,382532,4221,035,4301,633,204
546,606565,859648,663714,660720,590657,286
651,022749,378782,266800,281833,063927,129
74,47375,69866,74083,76288,06382,452
- - - - - -
- - 4,594 - - -
- - - - 23,2341,248
1,272,1011,390,9351,502,2631,598,7031,664,9501,668,115
$2,444,173$2,563,466$2,056,645$2,131,125$2,700,380$3,301,319
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2005200620072008
Net (expense) revenue:
Governmental activities($1,671,306)$438,293($2,389,186)($3,380,465)
Business-type activities166,143168,206151,27871,477
Total primary government net
(expense) revenue(1,505,163)606,499(2,237,908)(3,308,988)
General revenues and other changes in net position:
Governmental activities:
General property taxes and tax increment2,222,3352,417,0142,730,9943,146,049
Unrestricted grants and contributions2,04029,838111,09056,693
Investment earnings258,614425,160532,827606,996
Gain on sale of property - 244,0999,23720,895
Miscellaneous25,20616,25427,62622,148
Transfers(416,944)101,917(329,589)432,248
Total governmental activities2,091,2513,234,2823,082,1854,285,029
Business-type activities:
Investment earnings29,26849,03760,10343,080
Loss on sale of capital assets - - - -
Transfers416,944(101,917)329,589(432,248)
Total business-type activities446,212(52,880)389,692(389,168)
Total primary government$2,537,463$3,181,402$3,471,877$3,895,861
Change in net position:
Governmental activities$419,945$3,672,575$692,999$904,564
Business-type activities612,355115,326540,970(317,691)
Total primary government$1,032,300$3,787,901$1,233,969$586,873
Table 2
Page 2 of 2
200920102011201220132014
($2,980,389)($3,272,821)($3,752,666)($4,108,736)($3,877,640)($3,365,964)
113,71976,066235,207415,945441,962449,545
(2,866,670)(3,196,755)(3,517,459)(3,692,791)(3,435,678)(2,916,419)
3,537,8293,692,1273,934,3094,289,5664,541,1034,706,974
180,430104,9872,0402,0402,0402,040
456,934320,183239,763204,422(85,474)421,387
12,165 - 8,9607,9501,95644,198
14,18616,58817,71829,17226,52631,644
(549,139)261,212(20,285)504,239406,38012,170
3,652,4054,395,0974,182,5055,037,3894,892,5315,218,413
26,17422,93417,78014,046(7,026)29,669
- - - - (1,472) -
549,139(261,212)20,285(504,239)(406,380)(12,170)
575,313(238,278)38,065(490,193)(414,878)17,499
$4,227,718$4,156,819$4,220,570$4,547,196$4,477,653$5,235,912
$672,016$1,122,276$429,839$928,653$1,014,891$1,852,449
689,032(162,212)273,272(74,248)27,084467,044
$1,361,048$960,064$703,111$854,405$1,041,975$2,319,493
CITY OF OAK PARK HEIGHTS, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2005200620072008
General Fund:
Nonspendable$ - $ - $ - $ -
Assigned for:
Employee benefits141,533169,633183,000188,000
Ensuing year's budget - - - -
Unassigned:
Cash flow reserve1,237,0001,409,0001,698,0001,541,000
General contingency reserve439,000493,000595,000542,000
Remaining unassigned balance286,210230,86939,620345,370
Total general fund$2,103,743$2,302,502$2,515,620$2,616,370
All other governmental funds:
Restricted for:
Debt service$214,783$717,829$460,263$127,247
Park improvements - - - -
Law enforcement - - - -
Tax increment - - - -
Unspent bond proceeds - - - -
Assigned, reported in:
Special revenue funds75,72186,326100,960102,181
Debt service funds - 47,315 - -
Capital projects funds6,107,9088,022,5888,480,88414,977,678
Unassigned - - - -
Total all other governmental funds$6,398,412$8,874,058$9,042,107$15,207,106
Table 3
200920102011201220132014
$ - $ - $2,057$4,609$5,201$80,806
188,000172,000179,000165,000173,000159,000
193,635100,000 - - -
1,558,0001,593,0001,911,0002,060,0002,125,0002,293,000
557,000554,000698,000734,000777,000810,000
223,377554,797471,504706,024434,170560,001
$2,720,012$2,973,797$3,261,561$3,669,633$3,514,371$3,902,807
$102,115$97,296$112,571$5,309,831$5,192,539$5,393,708
- - 913,170870,864815,549664,792
- - 8,1556,9237,33013,304
- - - 4,60419,33149,860
- - - - - 1,118,479
100,73788,47131,19831,62731,32432,019
- - - - - -
13,236,36111,188,96810,704,78211,645,00312,100,25812,434,638
- - - - - (377,266)
$13,439,213$11,374,735$11,769,876$17,868,852$18,166,331$19,329,534
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2005200620072008
Revenues:
General property taxes$2,218,906$2,423,246$2,687,730$3,156,807
Tax increment - - - -
Special assessments225,516553,45042,34232,078
Licenses and permits365,512306,266155,820203,041
Intergovernmental101,519102,818188,594141,141
Charges for services294,8461,886,776192,545102,199
Fines and forfeits69,85084,73066,18963,602
Investment income258,614425,160532,827606,996
Direct charges to developers139,191938,298244,895 -
Refunds and reimbursements125,405155,080105,832134,987
Donations and contributions10,117136,51483,06427,672
Total revenues3,809,476 7,012,338 4,299,838 4,468,523
Expenditures:
Current:
General government851,437941,8751,002,7631,075,616
Public safety1,172,8031,180,4411,193,4511,292,465
Public works208,848423,010458,241632,530
Parks and recreation99,980107,071138,491146,928
Capital outlay379,3441,797,0171,327,754901,564
Debt service:
Principal retirement395,000190,000125,000750,000
Interest and other56,71044,53537,688134,850
Bond issuance costs - - - 111,020
Total expenditures3,164,122 4,683,949 4,283,388 5,044,973
Revenues over (under) expenditures645,354 2,328,389 16,450 (576,450)
Other financing sources (uses):
Sale of capital assets - 244,0999,23721,289
Bonds issued - - - 6,300,000
Premium on bonds issued - - - 5,827
Transfers in180,098190,417432,2801,790,926
Transfers out(88,500)(88,500)(76,800)(1,275,843)
Total other financing sources (uses)91,598 346,016 364,717 6,842,199
Net change in fund balance$736,952$2,674,405$381,167$6,265,749
Debt service as a percentage of noncapital expenditures16.2%8.1%5.5%21.9%
Debt service as percentage of total expenditures 14.3%5.0%3.8%17.5%
Table 4
200920102011201220132014
$3,470,670$3,697,809$3,984,389$4,245,360$4,433,202$4,620,521
- - - 26,583106,924125,120
43,81028,58322,95221,90620,731237,636
100,074197,181131,081163,98690,910137,543
276,772282,55197,442114,952102,211453,283
107,392561,411134,23749,441337,912120,050
74,58873,76160,82256,70956,60862,885
456,934320,183239,763204,422(85,474)421,387
- - - - - -
137,422134,323132,565154,415135,364106,553
612,5252,18412,500400500200
5,280,187 5,297,986 4,815,751 5,038,174 5,198,888 6,285,178
1,117,8221,370,3811,178,7101,195,1211,378,8911,445,480
1,277,6001,312,3351,351,5671,394,5861,449,1031,535,387
586,872592,897605,955737,001805,776601,870
139,188125,414129,327132,497152,061162,892
4,957,6533,583,666767,988160,8561,103,3094,540,043
135,000250,000255,000275,000295,000315,000
255,213272,000266,675260,680362,436396,195
33,537 - - 103,854 - 80,533
8,502,885 7,506,693 4,555,222 4,259,595 5,546,576 9,077,400
(3,222,698)(2,208,707)260,529 778,579 (347,688)(2,792,222)
12,20042510,01024,4182,00044,400
1,195,000 - - 5,140,000 - 3,775,000
- - - 155,137 - 111,689
1,144,241397,589412,366408,9142,274,5404,081,662
(792,994) - - - (1,868,160)(3,668,890)
1,558,447 398,014 422,376 5,728,469 408,380 4,343,861
($1,664,251)($1,810,693)$682,905$6,507,048$60,692$1,551,639
11.1%13.3%13.8%13.4%14.8%16.0%
4.6%7.0%11.5%12.6%11.9%7.8%
CITY OF OAK PARK HEIGHTS, MINNESOTA
TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Fiscal
YearCommercial/
EndedResidentialIndustrialPublicAll
December 31,PropertyPropertyUtilityOther
2005$2,907,926$2,526,858$1,378,249$105,907
20063,269,4682,687,6501,415,909112,921
20073,318,0523,331,9101,733,70388,073
20083,429,1043,679,1883,060,14482,329
20093,483,7263,952,5233,568,95793,832
20103,304,1103,869,5683,311,71687,480
20113,202,6133,676,9853,454,88092,822
20122,928,5143,567,1963,599,10491,665
20132,736,977 3,528,330 3,990,896 96,104
20142,834,815 3,424,868 3,904,920 96,659
Source: Washington County Certificate as to Taxes and Taxable Property
Table 5
Adjusted
Less:Less:Tax Capacity
TotalFiscalTax AdjustedTotalEstimatedas a Percent
TaxDisparityIncrementTax CapacityDirect TaxMarketof Total Tax
CapacityContributionCapturedValueRateValueCapacity
$6,918,940$954,578$ - $5,964,36236.488$485,026,70086.2%
7,485,9481,037,753 - 6,448,19538.377539,357,10086.1%
8,471,7381,115,215 - 7,356,52335.731579,089,80086.8%
10,250,7651,508,660 - 8,742,10536.343673,570,60085.3%
11,099,0382,177,678 - 8,921,36038.732718,753,40080.4%
10,572,8742,492,111 - 8,080,76343.845682,742,10076.4%
10,427,3002,117,456 - 8,309,84445.028674,199,10079.7%
10,186,4792,336,41126,9137,823,15551.710643,608,30076.8%
10,352,3072,346,765 108,254 7,897,28854.898641,169,000 76.3%
10,261,2622,467,230 126,677 7,667,35559.641640,880,100 74.7%
CITY OF OAK PARK HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES Table 6
Last Ten Fiscal Years
Overlapping Rates
City
FiscalDirectSchoolOther
YearRateCountyDistrictDistrictsTotal
200536.48828.59919.3936.41290.892
200636.13626.96819.4055.74188.250
200735.73325.67319.0044.85685.266
200836.34325.93617.4044.88584.568
200938.73226.37117.7144.83287.649
201043.84527.77519.7345.10796.461
201145.02829.77220.3005.536100.636
201251.71031.93922.3346.250112.232
201354.89834.22522.0186.983118.123
201459.64132.81123.1506.538122.140
Source: Washington County website.
CITY OF OAK PARK HEIGHTS, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS Table 7
Current Year and Nine Years Ago
20142005
Percentage Percentage
Taxableof Total CityTaxableof Total City
CapacityCapacityCapacityCapacity
TaxpayerValueRankValueValueRankValue
Xcel Energy$4,149,138140.43%$1,557,715122.51%
VSSA Boutwells Landing LLC550,40925.36%322,06034.65%
Wal-Mart Stores, Inc.294,78032.87% - - 0.00%
OPH Pat LLC & OPH Val LLC248,93442.43%107,29671.55%
SC Mall LLC205,96252.01%367,420 25.31%
Menard Inc.188,31061.84%173,633 5 2.51%
Lowe's Home Centers, Inc.174,84671.70% - - 0.00%
OP Stillwater LLC159,25081.55% - - 0.00%
W.A.T.E. Enterprises Inc.125,61091.22%106,68081.54%
Raduenz Dealership 102,840101.00%83,32891.20%
KTJ Limited Partnership Eleven - - 0.00%213,522 43.09%
Wal-Mart Real Estate Business - - 0.00%138,150 62.00%
WDBH Realty Company - - 0.00%78,618 101.14%
Total$6,200,07960.42%$3,148,42245.50%
Total All Property $10,261,262$6,918,930
CITY OF OAK PARK HEIGHTS, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS Table 8
Last Ten Fiscal Years
FiscalTaxesCollections
Collected Within The
YearLeviedin
Fiscal Year of the LevyTotal Collections to Date
EndedFor ThePercentageSubsequentPercentage
December 31,Fiscal Year Amountof LevyYearsAmountof Levy
(1)
2005$2,208,178$2,176,29098.56%$28,722$2,205,01299.86%
(1)
20062,395,0442,363,19298.67%31,5792,394,77199.99%
(1)
20072,781,4892,646,42195.14%(20,936)2,625,48594.39%
(1)
20083,286,2303,211,39297.72%(10,973)3,200,41997.39%
(1)
20093,574,8553,447,96596.45%71,5113,519,47698.45%
(1)
20103,662,4553,584,02797.86%(13,112)3,570,91597.50%
(1)
20113,870,7703,819,22098.67%(5,128)3,814,09298.54%
(2)
20124,229,9244,176,12598.73%(88,696)4,087,42996.63%
(2)
2013 4,549,431 97.99%(37,530)4,420,35697.16%4,457,886
(2)
20144,803,959 98.47% - 4,730,34398.47%4,730,343
(1)
The levy amount presented is after deduction for Market Value Homestead Credit.
(2)
The levy amount presented includes excess TIF Tax.
Source: City Finance Department.
CITY OF OAK PARK HEIGHTS, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE Table 9
Last Ten Fiscal Years
Governmental Activities
GeneralPercentage
FiscalObligationImprovementof TaxPer
YearBondsBondsTotalCapacityCapita
2005$65,000$1,000,000$1,065,00015.39%228
2006 - 875,000875,00011.69%188
2007 - 750,000750,0008.85%161
20086,300,000 - 6,300,00061.46%1,326
20097,360,000 - 7,360,00066.31%1,549
20107,110,000 - 7,110,00067.25%1,639
20116,855,000 - 6,855,00065.74%1,580
201211,720,000(1) - 11,720,000115.05%2,637
201311,425,000 - 11,425,000110.36%2,455
201414,885,000 - 14,885,000145.06%3,142
Notes: (1)Details regarding the City's outstanding debt can be found in the notes to the financial statements.
There is no business-type activity long-term debt. In 2012, the City issued the $5,140,000 Crossover
Refunding Bonds to refund $4,860,000 of the 2008 GO Improvement Bonds. The 2008 Bonds will
be called for prepayment in 2016.
CITY OF OAK PARK HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBTTable 10
December 31, 2014
Estimated
EstimatedShare of
DebtPercentageOverlapping
Governmental UnitOutstandingApplicableDebt
Debt repaid with property taxes:
Independent School District No. 83439,690,00010.94%$4,342,086
Washington County172,765,0003.03%5,234,780
Metro Transit306,885,0920.34%1,043,409
Subtotal - overlapping debt10,620,275
City direct debt100.00%14,885,000
Total direct and overlapping debt$25,505,275
Sources: Washington County
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City.
This table estimates the portion of the outstanding debt of those overlapping governments that is borne by the
residents and businesses 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 residents and businesses should be taken into account.
However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each
overlapping government.
CITY OF OAK PARK HEIGHTS, MINNESOTA
LEGAL DEBT MARGIN INFORMATIONTable 11
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2014
Market value$666,399,400
Debt limit (3% of market value)19,991,982
Debt applicable to limit:
General obligation bonds14,885,000
Less: Amount set aside for repayment
of general obligation debt(4,860,000)
Total net debt applicable to limit10,025,000
Legal debt margin$9,966,982
Legal Debt Margin Calculation for Fiscal Years 2005 Through 2014
Net DebtLegalAmount of Debt
FiscalDebtApplicable toDebtApplicable to
YearLimitLimitMarginDebt Limit
2005$9,700,534$ - $9,700,5340.00%
200610,787,142 - 10,787,1420.00%
200711,581,796 - 11,581,7960.00%
200820,207,1186,172,75314,034,36530.55%
200921,562,6027,257,88514,304,71733.66%
201020,482,2637,012,70413,469,55934.24%
201120,098,1616,746,31513,351,84633.57%
201219,308,249 6,410,170 12,898,07933.20%
201319,235,070 6,232,461 13,002,60932.40%
201419,991,982 10,025,000 9,966,98250.15%
Note: In 2008, State Statutes increased the percentage used to calculate the debt limit from 2% to 3%.
CITY OF OAK PARK HEIGHTS, MINNESOTA
PLEDGED REVENUE COVERAGE Table 12
Last Ten Fiscal Years
Improvement Bonds
PropertySpecialProperty Tax
FiscalTaxAssessmentTransfer FromDebt Service
(1)(2)(3)
Collections
YearCollectionsGeneral FundPrincipalInterestCoverage
2005$ - $204,585$ - $235,000$51,3870.714
2006 - 156,905 - 190,00044,5350.669
2007 - 35,180 - 125,00037,6880.216
2008 - 31,221 - 750,00010,8330.041
2009336,292 - - 135,000252,6130.868
2010392,805 -122,000250,000272,0000.986
2011400,902 -134,000255,000266,6751.025
2012 - -536,000275,000260,6801.001
2013 - -559,000295,000253,6051.019
2014 - -559,000315,000245,5280.997
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1,3)
Capital Improvement Bonds were issued during 2008 and 2009 to finance construction of City Hall. The debt service
payments, which began in 2009, are funded by property tax collections and transfers from the General Fund.
(2)
Debt service payments on Improvement Bonds of 1998 ended in 2008 when the bond was paid off. Special assessment
collections, as well as transfers from the connection charge funds, were used to make the debt service payments.
CITY OF OAK PARK HEIGHTS, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICSTable 13
Last Ten Fiscal Years
Per
Capita
FiscalUnemploymentPersonalPersonal
(1)(1)
Income
YearPopulationRateIncome
20054,6643.4%
20064,6763.5%
20074,7514.1%
20084,7085.4%
20094,6537.4%
Information Not Available
20104,3396.3%
20114,3395.2%
2012 4,4455.3%
2013 4,6544.6%
2014 4,7383.8%
Sources: Metropolitan Council (population), Continuing Disclosure Document or County Records (unemployment rate)
(1)
Information Not Available
CITY OF OAK PARK HEIGHTS, MINNESOTA
PRINCIPAL EMPLOYERSTable 14
Current Year and Nine Years Ago
20142005
EmployerProduct ServiceEmployeesEmployees
Andersen CorporationWindow Manufacturer523600
VSSA - Boutwell's Landing/McKean SquareSenior Community Housing48595
State of Minnesota Correctional FacilityGovernment Correctional Institution355297
Wal-Mart Stores, Inc.Retail261225
ISD No. 834, StillwaterPublic education180220
Menard's Inc.Retail Lumber/Hardware124100
Lowe'sRetail110 -
Xcel EnergyElectric Utility106 -
Stillwater MotorsAuto Dealership/Service Repair92105
Kowalski'sRetail/Grocery95 -
Kohl'sRetail - 155
Stillwater FordAuto Dealership/Service Repair - 129
HerbergersRetail - 135
Total2,3312,061
CITY OF OAK PARK HEIGHTS, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Full-Time Equivalent Employees as of December 31,
Function/Program200520062007
General government:
Administration222
Finance333
Building inspections222
Public safety101010
Public works444
Total212121
Source: City Finance Department
Table 15
Full-Time Equivalent Employees as of December 31,
2008200920102011201220132014
2222233
3333333
2222111
10101010101111
4334444
21202021202222
CITY OF OAK PARK HEIGHTS, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program200520062007
Police:
Physical arrests251240207
Parking violations12312492
Traffic violations1,089738613
Fire:
Fire and related calls115119106
Medical calls251302270
Building inspection:
Permits issued:
Residential21119
Commercial13158
Total permit valuation$12,732,475$36,975,066$6,521,063
Water:
Connections1,2771,2891,304
Average daily demand (thousands of gallons)614,000676,000681,452
Sewer:
Connections1,2511,2641,274
Sources: Various City departments.
(1)
Connection for Irrigation accounts removed from the total
Table 16
Fiscal Year
2008200920102011201220132014
224208176151151148169
135170171155999186
1,0169691,2408741,1261,0811,283
989111083107170170
292293260306451546546
4 - 1 - 2 - -
22132 - -
$18,707,532$7,254,000$10,955,024$1,828,000$8,776,295$4,781,710$4,781,710
(1)(1)(1)
1,3151,3181,3171,3211,2731,2741,274
654,172681,816576,085593,496667,835626,000608,216
1,2831,2851,2681,2781,2861,2801,280
CITY OF OAK PARK HEIGHTS, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program2005200620072008
Police:
Stations1111
Squad cars7666
Fire stations
Other public works:
Miles of paved streets22.022.022.022.0
Streetlights392392396396
Traffic signals2222
Parks and recreation:
Parkland acreage105105104108
Number of parks4455
Water:
Water mains (miles)26.626.626.826.8
Fire hydrants316316316316
Storage capacity (thousands of gallons)750750750750
Wastewater:
Sanitary sewers (miles)23.323.324.924.9
Storm sewers (miles)12.512.512.612.6
Sources: Various City departments.
Table 17
Fiscal Year
200920102011201220132014
111111
666666
22.022.022.022.022.022.0
396396396396396396
222222
104104104104104104
555555
27.127.127.127.127.127.1
265265265265265267
750750750750750750
24.924.924.924.924.924.9
12.612.612.612.612.612.6