HomeMy WebLinkAbout2016 Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA
ANNUAL FINANCIAL REPORT
December 31, 2016
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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 1068
Schedule of Proportionate Share of Net Pension Liability - General Employees
Retirement FundStatement 1172
Schedule of Pension Contributions - General Employees Retirement FundStatement 1273
Schedule of Proportionate Share of Net Pension Liability - Public Employees Police
and Fire FundStatement 1374
Schedule of Pension Contributions - Public Employees Police and Fire FundStatement 1475
Notes to RSI76
Combining and Individual Nonmajor Fund Financial Statements:
Combining Balance Sheet - Nonmajor Governmental FundsStatement 1579
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental FundsStatement 1680
CITY OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
ReferenceNo.
Subcombining Balance Sheet - Nonmajor Special Revenue FundsStatement 1781
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue FundsStatement 1882
Subcombining Balance Sheet - Nonmajor Debt Service FundsStatement 1983
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service FundsStatement 2085
Subcombining Balance Sheet - Nonmajor Capital Project FundsStatement 2186
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project FundsStatement 2288
Agency Funds:
Subcombining Balance SheetStatement 2390
Subcombining Statement of Changes in Assets and LiabilitiesStatement 2491
STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Position by Component - Last Ten Fiscal YearsTable 194
Changes in Net Position - Last Ten Fiscal YearsTable 296
Fund Balances, Governmental Funds - Last Ten Fiscal YearsTable 3100
Changes in Fund Balances, Governmental Funds - Last Ten Fiscal YearsTable 4102
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of Taxable PropertyTable 5104
Direct and Overlapping Property Tax Capacity RatesTable 6106
Principal Property TaxpayersTable 7107
Property Tax Levies and CollectionsTable 8108
Debt Capacity:
Ratios of Outstanding Debt by TypeTable 9109
Direct and Overlapping Governmental Activities DebtTable 10110
Legal Debt Margin InformationTable 11111
Pledged Revenue CoverageTable 12112
Demographic and Economic:
Demographic and Economic StatisticsTable 13113
Principal EmployersTable 14114
Operating Information:
Full-Time Equivalent City Government Employees By Function/ProgramTable 15116
Operating Indicators by Function/ProgramTable 16118
Capital Asset Statistics by Function/ProgramTable 17120
INTRODUCTORY SECTION
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CITY OF OAK PARK HEIGHTS, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
December 31, 2016
Term Expires
Mayor:
Mary McComberDecember 31, 2016
Councilmembers:
Chuck DoughertyDecember 31, 2016
Mike LilijegrenDecember 31, 2018
Mike RunkDecember 31, 2016
Mark SwensonDecember 31, 2018
Administrator:
Eric JohnsonAppointed
Finance Director:
Betty CarusoAppointed
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FINANCIAL SECTION
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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, 2016, 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.
4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com
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, 2016, 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 2015 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 April 19, 2016. In our opinion, the summarized comparative
information presented herein as of and for the year ended December 31, 2015 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, the schedules of
pension contributions and the schedules of proportionate share of pension liability, 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 17,
2017, 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 with Government 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 17, 2017
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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, 2016.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$43,548,776 (net position). Of this amount, $17,266,646 (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 $3,171,064.
As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $19,232,700, a decrease of $2,887,195. The decrease is the result of
the retirement of the 2008 General Obligation Bonds which utilized $4,941,725 of fund
balance while the unrestricted and assigned fund balance increased by $2,355,379 due to
revenues exceeding expenditure, and reduction in expenditures for capital projects.
At the end of the current fiscal year the General Fund balance was $5,010,332, of which
$63,813 is nonspendable, $140,000 is assigned, and $4,806,519 is unassigned. The
unassigned fund balance is 85% of the total subsequent year General Fund budgeted
expenditures.
The General Fund balance increased by $377,799.This increase is a result of favorable
budget variances for revenue and expenditures.
The City’s budgeted transfers were $971,304 from the General Fund to the Budgeted Projects
Fund for capital improvements for streets, parks, public safety, public works, and general
government; $364,200 from the General Fund to the Street Reconstruction Fund; $86,500
from the General Fund to the Storm Sewer Renewal Replacement Fund; $620,000 from the
General Fund to the G.O. Capital Improvement Bond Funds of 2008, 2009, and 2014, and
$100,000 from the General Fund to the Park Development Fund.
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 resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government’s near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government-wide
financial statements. By doing so, readers may better understand the long-term impact of the
City's near term financial decisions. Both the governmental fund balance sheet and
governmental fund statement of revenues, expenditures and change in fund 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
Budgeted Projects and Equipment Revolving – Capital Project Fund
G.O. Capital Improvement Bonds of 2014A – Debt Service Fund
G.O. Capital Improvement Bonds of 2008 – Debt Service 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
Internal service funds are used to report activities that provide services for the City’s other
departments, such as pension benefits. The internal service fund is reported with
governmental activities in the government-wide financial statements.
The basic proprietary fund financial statements are statements 6 through 8 of this report.
Management’s Discussion and Analysis
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.
The basic fiduciary fund statements are Statements 9, 23 and 24.
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 15 through 22.
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 $43,548,776 at the
close of the most recent fiscal year.
The largest portion of the City’s net position ($23,928,880 or 55%) 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.
Management’s Discussion and Analysis
City of Oak Park Heights’ Net Position
Governmental ActivitiesBusiness-Type ActivitiesTotals
201620152016201520162015
Assets:
Current and other assets$20,543,812$23,916,601$2,124,777$2,039,086$22,668,589$25,955,687
Capital assets20,891,26023,371,54112,010,7488,069,04432,902,00831,440,585
Total assets$41,435,072$47,288,142$14,135,525$10,108,130$55,570,597$57,396,272
Total deferred outflows of resources$3,035,435$344,091$0$0$3,035,435$344,091
Liabilities:
Long-term liabilities outstanding$7,833,247$10,840,865$39,348$35,491$7,872,595$10,876,356
Other liabilities6,469,2756,116,379136,72880,3186,606,0036,196,697
Total liabilities$14,302,522$16,957,244$176,076$115,809$14,478,598$17,073,053
Total deferred inflows of resources$578,658$289,598$0$0$578,658$289,598
Net position:
Net investment in capital assets$11,918,132$14,030,120$12,010,748$8,069,044$23,928,880$22,099,164
Restricted2,353,2502,464,368 - - 2,353,2502,464,368
Unrestricted15,317,94513,890,9031,948,7011,923,27717,266,64615,814,180
Total net position$29,589,327$30,385,391$13,959,449$9,992,321$43,548,776$40,377,712
A portion of the City’s net position ($17,266,646) is its unrestricted net position which may
be used to meet the City’s ongoing obligations to citizens and creditors. The remaining
balance of $2,353,250 represents resources that are subject to external restrictions on how
they may be used.
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 decreased the City’s net position by $796,064 during 2016. Key
elements of this decrease are as follows:
Charges for services decreased $113,637 largely due to collection of area charges
from development.
Investment income increased by $48,813 due to the realized and unrealized losses in
the value of investments which are annually adjusted in accordance with accounting
standards.
Property taxes increased $213,781 due to an increase in taxes levied.
Public safety expenses increased $662,433 largely due to an increase in pension
liability and the $92,800 annual installment to the City of Bayport for the fire station.
Public works expenses increased $644,726 due to the asset disposition from the
replacement of infrastructure as a result of the building of the St. Croix River crossing
and the capitalization of expenditures for capital improvements.
Management’s Discussion and Analysis
City of Oak Park Heights’ Changes in Net Position
Governmental ActivitiesBusiness-Type ActivitiesTotals
201620152016201520162015
Revenues:
Program revenues:
Charges for services$585,990$699,627$1,789,275$1,745,846$2,375,265$2,445,473
Operating grants and contributions109,101105,2311,3827,930110,483113,161
Capital grants and contributions75,1101,209,432 - 51675,1101,209,948
General revenues:
General property taxes5,318,5605,104,779 - - 5,318,5605,104,779
Tax increment185,539184,251 - - 185,539184,251
Grants and contributions not
restricted to specific programs13,97510,3202,674,692 - 2,688,66710,320
Other revenue36,35422,655265 - 36,61922,655
Unrestricted investment earnings202,911154,09817,09111,547220,002165,645
Total revenues6,527,5407,490,3934,482,7051,765,83911,010,2459,256,232
Expenses:
General government1,708,1481,685,452 - - 1,708,1481,685,452
Public safety2,226,4911,564,058 - - 2,226,4911,564,058
Public works1,548,584903,858 - - 1,548,584903,858
Parks and recreation373,279315,390 - - 373,279315,390
Interest on long-term debt394,165406,215 - - 394,165406,215
Water - - 614,628496,607614,628496,607
Sanitary sewer - - 909,565749,937909,565749,937
Storm sewer - - 64,32160,08164,32160,081
Total expenses 6,250,6674,874,9731,588,5141,306,6257,839,1816,181,598
Increase in net position before transfers276,8732,615,4202,894,191459,2143,171,0643,074,634
Transfers(1,072,937)(1,012,761)1,072,9371,012,761 - -
Change in net position(796,064)1,602,6593,967,1281,471,9753,171,0643,074,634
Net position - January 1, as previously reported30,385,39130,370,4329,992,3218,520,34640,377,71238,890,778
Prior period adjustment - (1,587,700) - - - (1,587,700)
Net position - January 1, as restated30,385,39128,782,7329,992,3218,520,34640,377,71237,303,078
Net position - December 31$29,589,327$30,385,391$13,959,449$9,992,321$43,548,776$40,377,712
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 $3,967,128 during 2016. 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 $19,232,700.
The General Fund increased by $377,799 in 2016. This is from revenues being over budget
by $362,176, due to $128,000 of unexpected revenue; tax revenue from TIF excess revenues
and delinquent collections resulting in $83,000 over expected collections; Intergovernmental
Revenue collected from Police Aid for $25,000 higher than anticipated; unexpected Refund
and Reimbursement revenues including insurance refunds and dividends of $74,000;
Development Charges of $28,000 over budget; and Investment Income of $33,000.
Expenditures were under budget by $590,462. Savings were experienced in all city
departments. Major savings were seen in Police due to reductions in personnel costs and
snow removal costs were less than anticipated.
The TIF District # 2 increased by $79. This fund was established for possible development
within the city which would require expenditures for street and utility infrastructure.
Preliminary expenses of $406,067 including the purchase of property have been incurred
during 2013-2015.
The Budgeted Projects and Equipment Revolving Fund increased by $905,039 due to
General fund balance transfers for future street maintenance and budgeted transfers for future
equipment and improvements.
The G.O. Capital Improvement Bonds of 2014 decreased by $111,787. The bonds were
issued for partial financing of the 2014-2015 Street and Utility Reconstruction Project. The
decrease is the result of using the assessments that were prepaid in addition to the amount
levied and collected for the repayment of the bonds principal and interest of $482,425.
The G.O. Capital Improvement Bonds of 2008 decreased by $95,999 as the fund was closed
to the 2012 General Obligation CIP Refunding Bonds which redeemed the outstanding
balance of the 2008 G.O. Capital Improvement Bonds.
The Street Reconstruction Capital Project Fund increased by $186,576 during 2016 . This
increase is due to the transfers in from the Renewal and Replacement Capital Project Fund
and the Storm Sewer Renewal and Replacement Capital Project Fund for the construction of
the utility portion of the Street Reconstruction Project.
The Renewal and Replacement Capital Project Fund increased by $232,230 during 2016.
This fund receives an annual transfer from the proprietary funds in an amount equal to
Management’s Discussion and Analysis
depreciation expense on capital assets. The increase is the net of the annual transfers reduced
by the amount transferred to fund the capital project for street reconstruction.
The nonmajor special revenue funds increased by $34,305 during 2016.
The nonmajor debt service funds decreased by $4,828,193 during 2016 due to the transfer out
for the redemption of the G.O. Improvement Bonds of 2008.
The nonmajor capital project funds increased by $412,756 during 2016 due mostly to the
collection of $380,000 from MNDOT for expenses incurred for the St. Croix River Crossing
Bridge Project.
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
Actual results as compared to budgeted were significantly different because of the following:
Intergovernmental revenue includes Police Aid revenues of $25,000 in excess of
expected funds from The State.
Licenses and permits and Charges for services had increases over anticipated amounts
due to development in the City.
Investment income was over $32,754 as well as Refunds and Reimbursement was
over $73,966. Investment income is not a budgeted revenue due to the fluctuations of
rates and market values and is not measurable. Included in Refunds and
reimbursements is insurance dividends which are not a guaranteed income and are not
budgeted for.
Total general government expenditures were $221,849 under budget because of
favorable budget variances, reduction in personnel and insurance costs.
Public safety expenditures were $130,273 under budget due to favorable budget
variances.
Public works expenditures were $219,410 under budget due to $158,221 of under
budget expenditures for snow and ice removal and overall favorable budget variances.
Parks and recreation expenditures were $18,930 under budget due to favorable budget
variances.
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, 2016, amounts to $32,902,008 (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
BalanceIncreasesDecreasesBalance
Governmental activities:
Capital assets, not being depreciated:
Land$2,581,071$ - ($267,577)$2,313,494
Construction in progress4,980,258981,221(5,609,663)351,816
Total capital assets, not being depreciated7,561,329981,221(5,877,240)2,665,310
Capital assets, being depreciated:
Buildings and structures7,600,11978,606 - 7,678,725
Other improvements1,505,92897,586 - 1,603,514
Machinery and equipment545,59875,587(59,012)562,173
Furniture and fixtures516,735 - - 516,735
Infrastructure15,047,0963,137,193(595,772)17,588,517
Total capital assets, being depreciated25,215,4763,388,972(654,784)27,949,664
Less accumulated depreciation for:
Buildings and structures1,004,060182,737 - 1,186,797
Other improvements397,15248,820 - 445,972
Machinery and equipment399,07237,840(58,738)378,174
Furniture and fixtures254,00737,062 - 291,069
Infrastructure7,350,973551,430(480,701)7,421,702
Total accumulated depreciation9,405,264857,889(539,439)9,723,714
Total capital assets being depreciated - net15,810,2122,531,083(115,345)18,225,950
Governmental activities capital assets - net$23,371,541$3,512,304($5,992,585)$20,891,260
BeginningEnding
BalanceIncreasesDecreasesBalance
Business-type activities:
Capital assets, not being depreciated:
Land$937,919$ - $ - $937,919
Total capital assets, not being depreciated937,91900937,919
Capital assets, being depreciated:
Buildings and structures2,047,66519,666 - 2,067,331
Machinery and equipment514,11911,919 - 526,038
Infrastructure9,267,4084,379,497(567,813)13,079,092
Total capital assets, being depreciated11,829,1924,411,082(567,813)15,672,461
Less accumulated depreciation for:
Buildings and structures955,10074,025 - 1,029,125
Machinery and equipment254,64025,331 - 279,971
Infrastructure3,488,327252,689(450,480)3,290,536
Total accumulated depreciation4,698,067352,045(450,480)4,599,632
Total capital assets being depreciated - net7,131,1254,059,037(117,333)11,072,829
Business-type activities capital assets - net$8,069,044$4,059,037($117,333)$12,010,748
Additional information on the City’s capital assets can be found in Note 5.
Long-term debt. At the end of the current fiscal year, the City had total bonded debt
outstanding of $8,973,132, a decrease of $5,634,338 from 2015.
Management’s Discussion and Analysis
Additional long-term debt in the amount of $239,367 for compensated absences and
$4,610,089 for net pension liability was also outstanding at the end of 2016.
City of Oak Park Heights’ Outstanding Debt
General obligation bonds, compensated absences and unamortized bond premium:
Governmental ActivitiesBusiness-Type ActivitiesTotals
201620152016201520162015
General obligation bonds$8,770,000$14,385,000$ - $ - $8,770,000$14,385,000
Compensated absences195,432223,04443,93548,557239,367271,601
Net pension liability4,610,0891,672,420 - - 4,610,089 -
Bond premium203,132222,470 - - 203,132222,470
Total$13,778,653$16,502,934$43,935$48,557$13,822,588$14,879,071
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 $22,008,489. The
City’s 2009A Capital Improvement Bonds and a portion of the 2014A General Obligation
Bonds for a total of $5,560,000 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
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CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF NET POSITIONStatement 1
December 31, 2016
With Comparative Amounts for The Year Ended December 31, 2015
Primary Government
GovernmentalBusiness-Type
Totals
Assets:ActivitiesActivities20162015
Cash and investments$19,448,041$1,665,553$21,113,594$18,999,236
Cash with escrow agent - - - 4,926,338
Accrued interest receivable62,106 - 62,10636,801
Accounts receivable - net55,576426,648482,224456,138
Internal balances23,622(23,622) - -
Due from other governmental units115,100679115,779497,410
Prepaid items63,81355,519119,332110,634
Taxes receivable34,015 - 34,01562,490
Special assessments receivable - net615,539 - 615,539740,640
Land held for resale126,000 - 126,000126,000
Capital assets (net of accumulated depreciation):
Land2,313,494937,9193,251,4133,518,990
Building and structures6,491,9281,038,2067,530,1347,688,624
Other improvements1,157,542 - 1,157,5421,108,776
Machinery and equipment183,999246,067430,066406,006
Furniture and fixtures225,666 - 225,666262,728
Infrastructure10,166,8159,788,55619,955,37113,475,203
Construction in progress351,816 - 351,8164,980,258
Total assets41,435,07214,135,52555,570,59757,396,272
Deferred outflows of resources:
Related to pensions3,035,435 -3,035,435344,091
Liabilities:
Accounts payable476,869117,573594,442280,499
Salaries payable3,5511,4354,9863,272
Contracts payable6,1226,43912,561192,866
Due to other governmental units5,9046,69412,5985,134
Accrued interest payable8,029 -8,02917,176
Deposits payable20,000 -20,00018,000
Unearned revenue3,394 -3,3944,615
Compensated absences payable:
Due within one year20,4064,58724,99360,135
Due in more than one year175,02639,348214,374211,466
Bonds payable:
Due within one year835,000 -835,0005,615,000
Due in more than one year8,138,132 -8,138,1328,992,470
Net pension liability:
Due in more than one year4,610,089 -4,610,0891,672,420
Total liabilities14,302,522176,07614,478,59817,073,053
Deferred inflows of resources:
Related to pensions578,658 -578,658289,598
Net position:
Net investment in capital assets11,918,13212,010,74823,928,88022,099,164
Restricted for:
Debt service1,871,925 -1,871,9251,770,237
Park improvements351,899 -351,899544,506
Other purposes129,426 -129,426149,625
Unrestricted15,317,9451,948,70117,266,64615,814,180
Total net position$29,589,327$13,959,449$43,548,776$40,377,712
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, 2016
With Comparative Amounts for The Year Ended December 31, 2015
Program Revenues
Charges For
Functions/ProgramsExpensesServices
Primary government:
Governmental activities:
General government$1,708,148$77,009
Public safety2,226,491390,727
Public works1,548,584101,471
Parks and recreation373,27916,783
Interest and fees on long-term debt394,165 -
Total governmental activities6,250,667585,990
Business-type activities:
Water614,628781,892
Sanitary sewer909,565924,105
Storm sewer64,32183,278
Total business-type activities1,588,5141,789,275
Total primary government$7,839,181$2,375,265
The accompanying notes are an integral part of these financial statements.
Statement 2
Net (Expense) Revenue and
Program RevenuesChanges in Net Position
OperatingCapitalPrimary Government
Grants andGrants andGovernmentalBusiness-TypeTotals
ContributionsContributionsActivitiesActivities20162015
$ - $ - ($1,631,139)$ - ($1,631,139)($1,548,455)
94,859 - (1,740,905) - (1,740,905)(1,180,818)
14,24275,110(1,357,761) - (1,357,761)590,195
- - (356,496) - (356,496)(315,390)
- - (394,165) - (394,165)(406,215)
109,10175,110(5,480,466)0(5,480,466)(2,860,683)
1,382 - - 168,646168,646292,860
- - - 14,54014,540131,491
- - - 18,95718,95723,316
1,38200202,143202,143447,667
$110,483$75,110(5,480,466)202,143(5,278,323)(2,413,016)
General revenues:
General property taxes5,318,560 - 5,318,5605,104,779
Tax increment185,539 - 185,539184,251
Grants and contributions not
restricted to specific programs13,9752,674,6922,688,66710,320
Unrestricted investment earnings202,91117,091220,002165,645
Other revenue36,35426536,61922,655
Transfers(1,072,937)1,072,937 - -
Total general revenues
and transfers4,684,4023,764,9858,449,3875,487,650
Change in net position(796,064)3,967,1283,171,0643,074,634
Net position - January 1, as originally reported30,385,3919,992,32140,377,71238,890,778
Prior period adjustment, See Note 18 - - - (1,587,700)
Net position - January 1, as restated30,385,3919,992,32140,377,712$37,303,078
Net position - December 31$29,589,327$13,959,449$43,548,776$40,377,712
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2016
With Comparative Totals For December 31, 2015
401 Budgeted
Projects and 526 G.O. Capital
206 TIF District EquipmentImprovement
General Fund#2RevolvingBonds of 2008
Assets
Cash and investments$4,420,723$4,036$3,330,219$ -
Cash with escrow agent - - - -
Accrued interest receivable62,106 - - -
Accounts receivable - net55,190 - 386 -
Due from other governmental units113,392 - - -
Due from other funds410,000 - - -
Prepaid items63,813 - - -
Delinquent taxes receivable34,015 - - -
Special assessments receivable - - - -
Land held for resale - - - -
Total assets$5,159,239$4,036$3,330,605$0
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable$85,437$ - $2,569$ -
Salaries payable3,551 - - -
Contracts payable - - - -
Due to other governmental units5,904 - - -
Due to other funds - 410,000 - -
Deposits payable20,000 - - -
Unearned revenue - - - -
Total liabilities114,892410,0002,5690
Deferred inflows of resources:
Unavailable revenue34,015 - - -
Fund balance:
Nonspendable63,813 - - -
Restricted - - - -
Assigned140,000 - 3,328,036 -
Unassigned4,806,519(405,964) - -
Total fund balance5,010,332(405,964)3,328,0360
Total liabilities, deferred inflows of resources, and fund balance$5,159,239$4,036$3,330,605$0
The accompanying notes are an integral part of these financial statements.
Statement 3
710 Renewal and
529 G.O. Capital
ReplacementOther
Improvement565 Street Capital Project GovernmentalIntra-Activity
Bonds of 2014AReconstructionFundFundsEliminationsTotal Governmental Funds
20162015
$1,047,320$2,182,167$3,436,453$5,027,123$ - $19,448,041$17,447,802
- - - - - - 4,926,338
- - - - -62,10633,514
- - - - -55,57632,519
1,708 - - - -115,100487,670
- - - -(410,000) - -
- - - - -63,81357,602
- - - - -34,01562,490
689,624 - - - -689,624814,725
- - -126,000 -126,000126,000
$1,738,652$2,182,167$3,436,453$5,153,123($410,000)$20,594,275$23,988,660
$ -$313,550$ - $75,313$ - $476,869$220,182
- - - - -3,5512,399
- - -6,122 -6,122192,866
- - - - -5,904454
- - - -(410,000) - -
- - - - -20,00018,000
- - -3,394 -3,3943,233
0313,550084,829(410,000)515,840437,134
685,720 - -126,000 -845,7351,431,631
- - - - -63,81357,602
1,052,932 - -614,598 - 1,667,5306,916,315
- 1,868,6173,436,4534,327,696 - 13,100,80211,196,278
- - - - - 4,400,5553,949,700
1,052,9321,868,6173,436,4534,942,294019,232,70022,119,895
$1,738,652$2,182,167$3,436,453$5,153,123($410,000)$20,594,275$23,988,660
Fund balance reported above$19,232,700$22,119,895
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.20,891,26023,371,541
Other long-term assets are not available to pay for current-period expenditures and, therefore, are
reported as unavailable revenues in the funds.771,6501,357,546
Long-term liabilities, are not due and payable in the current period and, therefore, are not reported in the funds:
Bonds payable(8,973,132)(14,607,470)
Compensated absences payable(195,432)(223,044)
Other post employment benefits - -
Accrued interest payable(8,029)(17,176)
An internal service fund is used by management to charge the costs of pension benefits to individual funds.
The assets and liabilities are included in the governmental activities on the Statement of Net Position.(2,129,690)(1,615,901)
Net position of governmental activities$29,589,327$30,385,391
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, 2016
With Comparative Totals For December 31, 2015
401 Budgeted
Projects and 526 G.O. Capital
206 TIF District EquipmentImprovement
General Fund#2RevolvingBonds of 2008
Revenues:
General property taxes$5,347,035$ - $ - $ -
Tax increment - - - -
Special assessments - - - -
Licenses and permits214,182 - - -
Intergovernmental111,141 - - -
Charges for services88,782 - - -
Fines and forfeits40,876 - - -
Investment income32,7547921,6501,563
Refunds and reimbursements148,966 - 53,600 -
Donations and contributions - - - -
Total revenues5,983,73679 75,250 1,563
Expenditures:
Current:
General government1,225,283 - 7,330 -
Public safety1,622,718 - 98,812 -
Public works455,311 - 60,546 -
Parks and recreation164,311 - 39,800 -
Capital outlay - - 84,594 -
Debt service:
Principal - - - 5,090,000
Interest - - - 208,000
Total expenditures3,467,6230 291,082 5,298,000
Revenues over (under) expenditures2,516,11379 (215,832)(5,296,437)
Other financing sources (uses):
Sale of capital assets3,690 - - -
Transfers in - - 1,120,8715,300,000
Transfers out(2,142,004) - - (99,562)
Total other financing sources (uses)(2,138,314)0 1,120,871 5,200,438
Net change in fund balance377,79979 905,039 (95,999)
Fund balance - January 14,632,533(406,043)2,422,99795,999
Fund balance - December 31$5,010,332($405,964)$3,328,036$0
The accompanying notes are an integral part of these financial statements.
Statement 4
710 Renewal and
529 G.O. Capital ReplacementOther
Improvement565 Street Capital Project GovernmentalIntra-Activity
Bonds of 2014AReconstructionFundFundsEliminationsTotal Governmental Funds
20162015
$ - $ - $ - $ - $ - $5,347,035$5,104,956
- - - 185,539 - 185,539184,251
220,052 - - - - 220,052381,071
- - - - - 214,182125,704
- - - 380,000 - 491,141165,950
- - - 47,871 - 136,653401,547
- - - 10,863 - 51,73967,170
11,58617,16529,95588,159 - 202,911154,098
- 32,479 - 421 - 235,466594,254
- - - 16,783 - 16,7834,550
231,638 49,644 29,955 729,636 0 7,101,501 7,183,551
- - - 150,630 - 1,383,2431,519,783
- - - 13,093 - 1,734,6231,620,793
- 51,6101,17113,730 - 582,368483,152
- - - 39,941 - 244,052176,416
- 375,203 - 202,187 - 661,9844,111,439
400,000 - - 125,000 - 5,615,000500,000
82,425 - - 132,225 - 422,650426,133
482,425 426,813 1,171 676,806 0 10,643,920 8,837,716
(250,787)(377,169)28,784 52,830 0 (3,542,419)(1,654,165)
- - - - - 3,690 -
139,000563,745348,061480,968(7,301,111)651,534541,719
- - (144,615)(4,914,930)7,301,111 - -
139,000 563,745 203,446 (4,433,962)0 655,224 541,719
(111,787)186,576 232,230 (4,381,132)0 (2,887,195)(1,112,446)
1,164,7191,682,0413,204,2239,323,426 - 22,119,89523,232,341
$1,052,932$1,868,617$3,436,453$4,942,294$0$19,232,700$22,119,895
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, 2016
With Comparative Amounts for The Year Ended December 31, 2015
20162015
Amounts reported for governmental activities in the
statement of activities are different because:
Net changes in fund balances - total governmental funds (Statement 4)($2,887,195)($1,112,446)
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(857,889)(779,336)
Capital outlay661,9844,111,439
Capitalized interest21,19918,248
Other various transactions relating to capital assets:
Transfer of capital assets to business-type activities(1,724,471)(1,554,480)
Disposal of assets(581,104)(31,846)
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(28,475)(177)
Change in deferred special assessments receivable(128,382)229,976
Change in value of land held for resale - (200)
Change in unavailable grant receivable(429,039)68,763
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 payable5,615,000500,000
Bond premium19,33819,338
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 payable27,612(8,015)
Change in other post employment benefits - 169,016
Change in accrued interest payable9,147580
An internal service fund is used by management to charge pension costs to individual
funds. This amount is the portion of net revenue attributable to governmental activities.(513,789)(28,201)
Change in net position of governmental activities (Statement 2)($796,064)$1,602,659
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, 2016
With Comparative Totals For Enterprise Funds For December 31, 2015
Governmental
Activities
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility Internal Service
Utility FundUtility FundFundFund
Totals
201620152016
Assets:
Current assets:
Cash and cash equivalents$815,012$687,395$163,146$1,665,553$1,551,434$ -
Accrued interest receivable - - - - 3,287 -
Accounts receivable:
Customers152,495207,33520,856380,686378,931 -
Certified to County16,53522,4596,96845,96244,688 -
Due from other governmental units440 - 2396799,740 -
Prepaid items7,18448,3231255,51953,032 -
Total current assets991,666 965,512 191,221 2,148,399 2,041,112 0
Noncurrent assets:
Capital assets:
Land937,919 - - 937,919937,919 -
Buildings and structures2,023,34743,983 - 2,067,3302,047,665 -
Machinery and equipment510,69615,342 - 526,038514,119 -
Distribution and collection system7,388,0895,691,004 - 13,079,0939,267,408 -
Total capital assets10,860,051 5,750,329 0 16,610,380 12,767,111 0
Less: Allowance for depreciation(2,828,005)(1,771,627) - (4,599,632)(4,698,067) -
Net capital assets8,032,0463,978,702012,010,7488,069,0440
Total noncurrent assets8,032,0463,978,702012,010,7488,069,0440
Total assets9,023,7124,944,214191,22114,159,14710,110,1560
Deferred outflows of resources:
Related to pensions - - - - - 3,035,435
Liabilities:
Current liabilities:
Accounts payable37,87885,772362124,01260,317 -
Salaries payable714709121,435873 -
Due to other governmental units4,2342,460 - 6,6944,680 -
Unearned revenue - - - - 1,382 -
Compensated absences payable - current portion2,6731,6272874,58713,066 -
Total current liabilities45,499 90,568 661 136,728 80,318 0
Noncurrent liabilities:
Compensated absences payable - noncurrent portion22,92813,9552,46539,34835,491 -
Net pension liability - - - - - 4,610,089
Noncurrent liabilities22,92813,9552,46539,34835,4914,610,089
Total liabilities68,427104,5233,126176,076115,8094,610,089
Deferred inflows of resources:
Related to pensions - - - - - 578,658
Net position:
Net investment in capital assets8,032,0463,978,702 - 12,010,7488,069,044 -
Unrestricted923,239860,989188,0951,972,3231,925,303(2,153,312)
Total net position$8,955,285$4,839,691$188,095$13,983,071$9,994,347($2,153,312)
Net position reported above$13,983,071$9,994,347
Adjustment to report the cumulative internal balance for the net effect of
activity between the internal service fund and the enterprise funds over time.(23,622)(2,026)
Net position of business-type activities$13,959,449$9,992,321
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND Statement7
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2016
With Comparative Totals For Enterprise Funds For December 31, 2015
Governmental
Activities
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility Internal Service
Utility FundUtility FundFundFund
Totals
201620152016
Operating revenues:
Customer billings$750,552$908,570$82,370$1,741,492$1,703,987$ -
Penalties8,18711,08687320,14619,802 -
Meter charges15,526 - - 15,5265,288 -
Charges for services1,0854,449355,5693,086193,766
Grants and contributions1,382 - - 1,3827,93011,935
Refunds and reimbursements6,542 - - 6,54213,683 -
Total operating revenues783,274 924,105 83,278 1,790,657 1,753,776 205,701
Operating expenses:
Personal services196,099130,11723,925350,141364,605741,086
Contractual services134,48994,14032,897261,526205,791 -
MCES charges - 458,379 - 458,379414,812 -
Materials and supplies15,6905,80869722,19527,844 -
Administrative and personnel charges - - 4,4004,4004,242 -
Repairs and maintenance - - 90090012 -
Depreciation235,784116,261 - 352,045278,320 -
Total operating expenses582,062 804,705 62,819 1,449,586 1,295,626 741,086
Operating income (loss)201,212 119,400 20,459 341,071 458,150 (535,385)
Nonoperating revenues (expenses):
Earnings on investments8,7636,7281,60017,09111,547 -
Other - - 265265516 -
(Loss) on disposal of capital assets(20,393)(96,939) - (117,332)(8,973) -
Total nonoperating revenues (expenses)(11,630)(90,211)1,865(99,976)3,0900
Income (loss) before contributions and transfers189,58229,18922,324241,095461,240(535,385)
Capital contributions2,674,8881,724,275 - 4,399,1631,554,480 -
Transfers:
Transfers to other funds(431,914)(208,387)(11,233)(651,534)(541,719) -
Total transfers and contributions2,242,9741,515,888(11,233)3,747,6291,012,7610
Change in net position2,432,5561,545,07711,0913,988,7241,474,001(535,385)
Net position - January 16,522,7293,294,614177,0049,994,3478,520,346(1,617,927)
Net position - December 31$8,955,285$4,839,691$188,095$13,983,071$9,994,347($2,153,312)
Change in
NetCapital
PositionContributionsTransfers
Reconciliation to Statement of Activities:
Amounts reported above$3,988,724$4,399,163($651,534)
Amounts reported for business-type activities in the Statement of Activities are different because:
Transfer in of capital assets from governmental activities - (1,724,471)1,724,471
Adjustment to reflect the consolidation of Internal Service Fund activities(21,596) - -
Amounts reported on the Statement of Activities$3,967,128$2,674,692$1,072,937
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, 2016
With Comparative Totals For Enterprise Funds For December 31, 2015
Governmental
Business-Type Activities Enterprise FundsActivities
707 Storm
705 Water 706 Sewer Sewer Utility Internal Service
Utility FundUtility FundFundTotalsFund
201620152016
Cash flows from operating activities:
Receipts from customers and users$798,527$911,505$83,893$1,793,925$1,719,465$ -
Receipts from interfund charges for pension benefits - - - - - 193,766
Grants and contributions1,382 - - 1,3827,93011,935
Payment to suppliers(125,015)(514,824)(44,339)(684,178)(606,059) -
Payments to other funds for services provided - - - - - (205,701)
Payment to employees(198,631)(131,487)(24,083)(354,201)(366,854) -
Miscellaneous revenue - - 265265516 -
Net cash flows provided by (used in) operating activities476,263265,19415,736757,193754,9980
Cash flows from noncapital financing activities:
Transfer to other funds(431,914)(208,387)(11,233)(651,534)(541,719)0
Cash flows from capital and related
financing activities:
Acquisition of capital assets(11,919) - - (11,919)(28,441) -
Proceeds from sale of capital assets - - - - 914 -
(11,919) - - (11,919)(27,527)0
Cash flows from investing activities:
Investment income10,4418,0451,89320,37910,9970
Net increase (decrease) in cash and cash equivalents42,87164,8526,396114,119196,7490
Cash and cash equivalents - January 1772,141622,543156,7501,551,4341,354,685 -
Cash and cash equivalents - December 31$815,012 $687,395 $163,146 $1,665,553 $1,551,434 $0
Reconciliation of operating income to net
cash provided by operating activities:
Operating income (loss)$201,212$119,400$20,459$341,071$458,150($535,385)
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities:
Depreciation235,784116,261 - 352,045278,320 -
Miscellaneous revenue - - 265265516 -
Changes in assets and liabilities:
Decrease (increase) in receivables18,017(12,600)6156,032(27,763) -
Decrease (increase) in prepaid expenses403(2,889)(1)(2,487)(790) -
Decrease (increase) in deferred outflows of resources - - - - - (2,691,344)
Increase (decrease) in payables20,84745,022(5,602)60,26746,5652,937,669
Increase (decrease) in deferred inflows of resources - - - - - 289,060
Total adjustments275,051 145,794 (4,723)416,122 296,848 535,385
Net cash provided by (used in) operating activities$476,263$265,194$15,736$757,193$754,998$0
Noncash investing, capital and financing activities:
Water utility assets in the amount of $2,674,888 were contributed to the Water Utility Fund in 2016.
Sewer utility assets in the amount of $1,724,275 were contributed to the Sewer Utility Fund in 2016.
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, 2016
With Comparative Totals For December 31, 2015
20162015
Assets:
Cash and investments$391,096$274,893
Due from developers17,71515,891
Total assets408,811290,784
Liabilities:
Escrow deposits payable165,997146,000
Accounts payable6,56618,446
Due to developers236,248126,338
Total liabilities408,811290,784
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, 2016
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 mayor. 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, 2016
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.
TheBudgeted Projects and Equipment Revolving Fund is used to account for monies set aside for
various capital improvements.
TheG.O. Capital Improvement Bonds of 2008 Debt Service Fund is used to account for the
accumulation of resources for debt service payments on the 2008 bonds.
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.
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, 2016
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.
Internal Service Fund – this pension benefit fund is used to provide pension benefits to other funds
of the City on a cost reimbursement basis.
As a general rule the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are transactions that would be treated as revenues,
expenditures or expenses if they involved external organizations, such as buying goods and services or
payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination
of these charges would distort the direct costs and program revenues reported for the various functions
concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes.
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 legally adopted on a basis consistent with generally accepted accounting principles.
Annual appropriated budgets are legally adopted for the General Fund, but not for Special Revenue
Funds. Budgeted expenditure appropriations lapse at year end.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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.
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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.
Investments are stated at fair value, except for investments in external investment pools that meet
GASB 79 requirements, which are stated at amortized cost. 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
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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.
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, 2016
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 acquisition 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, 2016, 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.
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
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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, 2016
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, 2015, 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 one item that
qualifies for reporting in this category. It is the pension related deferred outflows of resources reported
in the government-wide Statement of Net Position and the Proprietary Funds Statement of Net Position.
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 government has pension related deferred
inflows of resources reported in the government-wide Statement of Net Position and the proprietary
funds Statement of Net Position. The City also has a 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.
U.DEFINED BENEFIT PENSION PLANS
Pensions. For purposes of measuring the net pension liability, deferred outflows/inflows of resources,
and pension expense, information about the fiduciary net position of the Public Employees Retirement
Association (PERA) and additions to/deductions from PERA’s fiduciary net position have been
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
determined on the same basis as they are reported by PERA except that PERA’s fiscal year end is June
30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit
payments and refunds are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
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.
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, 2016 the carrying amount of the City’s deposits with financial institutions was
$4,345,170.
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, 2016, the bank balance of the City’s deposits was
$4,546,371, 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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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.
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, 2016 the City had the following investments and maturities:
Investment Maturities (in Years)
FairLess
Investment TypeRatingValueThan 11-56-10
Federal National Mortgage Assn. NotesAaa$1,415,610$ - $779,790$635,820
Federal Home Loan Bank NotesAaa4,648,117 - 3,737,000911,117
Brokered certificates of depositNR9,971,8924,801,0204,942,776228,096
External investment pool - 4M FundNR1,123,8011,123,801 - -
Total$17,159,420$5,924,821$9,459,566$1,775,033
NR - Not RatedTotal investments$17,159,420
Deposits4,345,170
Petty cash100
Total cash and investments$21,504,690
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. The hierarchy has three levels. Level 1 investments are valued using inputs that are
based on quoted prices in active markets for identical assets. Level 2 investments are valued using inputs
that are based on quoted prices for similar assets or inputs that are observable, either directly or indirectly.
Level 3 investments are valued using inputs that are unobservable.
The City has the following recurring fair value measurements as of December 31, 2016:
Fair Value Measurement Using
Investment Type12/31/2016Level 1Level 2Level 3
Investments at fair value:
Federal National Mortgage Assn. Notes$1,415,610$ - $1,415,610$ -
Federal Home Loan Bank Notes4,648,117 - 4,648,117 -
Brokered certificates of deposit9,971,892 - 9,971,892 -
Total/Subtotal16,035,619$0$16,035,619$0
Investments not categorized:
External investment pool - 4M Fund1,123,801
Total$17,159,420
The City’s external investment pool investment is with the 4M fund which is regulated by Minnesota
Statutes and the Board of Directors of the League of Minnesota Cities. The 4M fund is an unrated pool and
the fair value of the position in the pool is the same as the value of pool shares. The pool is managed to
maintain a portfolio weighted average maturity of no greater than 60 days and seeks to maintain a constant
net asset value (NAV) per share of $1. The pool measures their investments in accordance with
Government Accounting Standards Board Statement No. 79, at amortized cost.
The 4M Liquid Asset Fund has no redemption requirements. The 4M Plus Fund requires funds to be
deposited for a minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period are subject
to a penalty equal to 7 days interest on the amount withdrawn.
Following is a reconciliation of the City’s cash and investment balances as of December 31, 2016:
Cash and investments:
Governmental and business-type (Statement 1)$21,113,594
Fiduciary (Statement 9)391,096
Cash with escrow agent -
Total cash and investments$21,504,690
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
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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.
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, 2016, more than 5% of the City’s cash and
investments are in the following governmental agencies: Federal National Mortgage Association (7%)
and Federal Home Loan Bank (22%).
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2016 are as
follows:
Storm Sewer
Utility
GeneralFundTotal
Delinquent property taxes$17,720$ - $17,720
Deferred special assessments605,6314,356609,987
Total$623,351$4,356$627,707
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:
Property Special Land Held
TaxesAssesmentsfor ResaleTotal
Major funds:
General Fund$34,015$ - $ - $34,015
Capital Improvement Bonds of 2014A - 685,720 - 685,720
Nonmajor funds - - 126,000126,000
Total unavailable revenue$34,015$685,720$126,000$845,735
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2016 was as follows:
BeginningEnding
BalanceIncreasesDecreasesBalance
Governmental activities:
Capital assets, not being depreciated:
Land$2,581,071$ - ($267,577)$2,313,494
Construction in progress4,980,258981,221(5,609,663)351,816
Total capital assets, not being depreciated7,561,329981,221(5,877,240)2,665,310
Capital assets, being depreciated:
Buildings and structures7,600,11978,606 - 7,678,725
Other improvements1,505,92897,586 - 1,603,514
Machinery and equipment545,59875,587(59,012)562,173
Furniture and fixtures516,735 - - 516,735
Infrastructure15,047,0963,137,193(595,772)17,588,517
Total capital assets, being depreciated25,215,4763,388,972(654,784)27,949,664
Less accumulated depreciation for:
Buildings and structures1,004,060182,737 - 1,186,797
Other improvements397,15248,820 - 445,972
Machinery and equipment399,07237,840(58,738)378,174
Furniture and fixtures254,00737,062 - 291,069
Infrastructure7,350,973551,430(480,701)7,421,702
Total accumulated depreciation9,405,264857,889(539,439)9,723,714
Total capital assets being depreciated - net15,810,2122,531,083(115,345)18,225,950
Governmental activities capital assets - net$23,371,541$3,512,304($5,992,585)$20,891,260
BeginningEnding
BalanceIncreasesDecreasesBalance
Business-type activities:
Capital assets, not being depreciated:
Land$937,919$ - $ - $937,919
Total capital assets, not being depreciated937,91900937,919
Capital assets, being depreciated:
Buildings and structures2,047,66519,666 - 2,067,331
Machinery and equipment514,11911,919 - 526,038
Infrastructure9,267,4084,379,497(567,813)13,079,092
Total capital assets, being depreciated11,829,1924,411,082(567,813)15,672,461
Less accumulated depreciation for:
Buildings and structures955,10074,025 - 1,029,125
Machinery and equipment254,64025,331 - 279,971
Infrastructure3,488,327252,689(450,480)3,290,536
Total accumulated depreciation4,698,067352,045(450,480)4,599,632
Total capital assets being depreciated - net7,131,1254,059,037(117,333)11,072,829
Business-type activities capital assets - net$8,069,044$4,059,037($117,333)$12,010,748
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government$194,659
Public safety23,867
Public works511,710
Recreation127,653
Total depreciation expense - governmental activities$857,889
Business-type activities:
Water$235,784
Sewer116,261
Total depreciation expense - business-type activities$352,045
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, 2016, the long-term debt of the financial reporting entity consisted of the following:
FinalAuthorized
Issue Maturity Interest AndOutstanding
DateDateRateIssued12/31/16
Governmental activities:
Improvement bonds:
G.O. Capital Improvement Bonds, Series 2009A09/15/0912/15/191.2 - 3.551,195,000$420,000
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 - 3.03,775,0003,210,000
Bond premium203,132
Compensated absences payable195,432
Total governmental activities9,168,564
Business-type activities:
Compensated absences payable43,935
Total City indebtedness$9,212,499
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Annual debt service requirements to maturity are as follows:
YearGovernmental Activities
Ending2009A G.O. Cap Imp Bonds2012A G.O. CIP Ref. Bonds2014A G.O. Cap Imp BondsTotal
December 31,PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest
2017$130,000$14,115$305,000$104,758$400,000$73,800$835,000$192,673
2018140,00010,084320,00098,658400,00065,800860,000174,542
2019150,0005,325340,00092,258375,00057,800865,000155,383
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$420,000$29,524$5,140,000$763,653$3,210,000$383,450$8,770,000$1,176,627
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, 2016, was as follows:
BalanceBalanceDue Within
01/01/16AdditionsReductions12/31/16One Year
Governmental Activities:
Bonded debt:
Improvement bonds$9,245,000$ - ($5,615,000)$3,630,000$530,000
CIP refunding bonds5,140,000 - - 5,140,000305,000
Bond premium222,470 - (19,338)203,132 -
Compensated absences223,04483,912(111,524)195,43220,406
Total governmental activities$14,830,514$83,912($5,745,862)$9,168,564$855,406
Business-Type Activities:
Compensated absences$48,557$13,374($17,996)$43,935$4,587
Total business-type activities$48,557$13,374($17,996)$43,935$4,587
For governmental activities, compensated absences are generally liquidated by the General Fund. All long-
term bonded indebtedness outstanding at December 31, 2016 is backed by the full faith and credit of the
City, including improvement bond issues. Delinquent taxes receivable at December 31, 2016 were $34,015.
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Revenues Pledged
Revenue PledgedCurrent Year
Percent ofRemainingPrincipalPledged
Use ofTotalTerm ofPrincipaland InterestRevenue
Bond IssueProceedsTypeDebt ServicePledgeand InterestPaidReceived
2009ACity hall constructionProperty taxes100%2010 - 2019$449,524$143,173$142,000
Special assessments62%
Water fund
contribution27%
2014AStreet reconstructionProperty taxes11%2015 - 2025$3,593,450$482,425$359,052
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 DEFINED BENFIT PENSION PLANS
A.PLAN DESCRIPTION
The City participates in the following cost-sharing multiple-employer defined benefit pension plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined
benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters
353 and 356. PERA’s defined benefit pension plans are tax qualified plans under Section 401 (a) of the
Internal Revenue Code.
1. General Employees Retirement Fund (GERF)
All full-time (with the exception of employees covered by PEPFF) and certain part-time employees
of the City are covered by the General Employees Retirement Fund (GERF). GERF members
belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by
Social Security and Basic Plan members are not. The Basic Plan was closed to new members in
1967. All new members must participate in the Coordinated Plan.
2. Public Employees Police and Fire Fund (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local relief
association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999,
the PEPFF also covers police officers and firefighters belonging to a local relief association that
elected to merge with and transfer assets and administration to PERA.
B.BENEFITS PROVIDED
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statute and can only be modified by the state legislature.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Benefit increases are provided to benefit recipients each January. Increases are related to the funding
ratio of the plan. Members in plans that are at least 90 percent funded for two consecutive years are
given 2.5% increases. Members in plans that have not exceeded 90% funded, or have fallen below
80%, are given 1% increases.
The benefit provisions stated in the following paragraphs of this section are current provisions and
apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not
receiving them yet are bound by the provisions in effect at the time they last terminated their public
service.
1.GERF Benefits
Benefits are based on a member’s highest average salary for any five successive years of allowable
service, age, and years of credit at termination of service. Two methods are used to compute
benefits for PERA's Coordinated and Basic Plan members. The retiring member receives the higher
of a step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under
Method 1, the annuity accrual rate for a Basic Plan member is 2.2% of average salary for each of
the first ten years of service and 2.7% for each remaining year. The annuity accrual rate for a
Coordinated Plan member is 1.2 percent of average salary for each of the first ten years and 1.7%
for each remaining year. Under Method 2, the annuity accrual rate is 2.7% of average salary for
Basic Plan members and 1.7% for Coordinated Plan members for each year of service. For
members hired prior to July 1, 1989, a full annuity is available when age plus years of service equal
90 and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement
age is the age for unreduced Social Security benefits capped at 66.
2.PEPFF Benefits
Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a
prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits
for PEPFF members first hired after June 30, 2014, vest on a prorated basis from 50% after ten
years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average
salary for each year of service. For PEPFF members who were first hired prior to July 1, 1989, a
full annuity is available when age plus years of service equal at least 90.
C.CONTRIBUTIONS
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the state legislature.
1.GERF Contributions
Basic Plan members and Coordinated Plan members were required to contribute 9.1% and 6.50%,
respectively, of their annual covered salary in calendar year 2016. The City was required to
contribute 11.78% of pay for Basic Plan members and 7.50% for Coordinated Plan members in
calendar year 2016. The City’s contributions to the GERF for the year ended December 31, 2016,
were $54,655. The City’s contributions were equal to the required contributions as set by state
statute.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
2.PEPFF Contributions
Plan members were required to contribute 10.8% of their annual covered salary in calendar year
2016. The City was required to contribute 16.20% of pay for PEPFF members in calendar year
2016. The City’s contributions to the PEPFF for the year ended December 31, 2016, were
$139,111. The City’s contributions were equal to the required contributions as set by state statute.
D.PENSION COSTS
1.GERF Pension Costs
At December 31, 2016, the City reported a liability of $958,101 for its proportionate share of the
GERF’s net pension liability. The City’s net pension liability reflected a reduction due to the State
of Minnesota’s contribution of $6 million to the fund in 2016. The State of Minnesota is
considered a non-employer contributing entity and the state’s contribution meets the definition of a
special funding situation. The State of Minnesota’s proportionate share of the net pension liability
associated with the City totaled $12,561. The net pension liability was measured as of June 30,
2016, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of that date. The City’s proportion of the net pension liability was based on
the City’s contributions received by PERA during the measurement period for employer payroll
paid dates from July 1, 2014, through June 30, 2016, relative to the total employer contributions
received from all of PERA’s participating employers. At June 30, 2016, the City’s proportion was
.0118% which was a decrease of .0003% from its proportion measured as of June 30, 2015.
For the year ended December 31, 2016, the City recognized pension expense of $109,846 for its
proportionate share of the GERF’s pension expense. In addition, the City recognized an additional
$3,745 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota’s contribution of $6 million to the General Employees Fund.
At December 31, 2016, the City reported its proportionate share of the GERF’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred OutflowsDeferred Inflows
of Resourcesof Resources
Differences between expected and
actual economic experience$ - $77,831
Changes in actuarial assumptions187,597 -
Difference between projected and
actual investment earnings181,851 -
Changes in proportion - 58,120
Contributions paid to PERA
subsequent to the measurement date27,227 -
Total$396,675$135,951
$27,227 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
pension liability in the year ended December 31, 2017. Other amounts reported as deferred
outflows and inflows of resources related to pensions will be recognized in pension expense as
follows:
Pension
Year EndedExpense
December 31,Amount
2017$55,041
201855,042
201988,805
202034,609
2021 -
Thereafter -
2. PEPFF Pension Costs
At December 31, 2016, the City reported a liability of $3,651,988 for its proportionate share of the
PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2016, and the
total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City’s proportion of the net pension liability was based on the City’s
contributions received by PERA during the measurement period for employer payroll paid dates
from July 1, 2015, through June 30, 2016, relative to the total employer contributions received
from all of PERA’s participating employers. At June 30, 2016, the City’s proportion was .0910%
which was a decrease of .0010% from its proportion measured as of June 30, 2015. The City also
recognized $8,190 for the year ended December 31, 2016, as pension revenue (and an offsetting
reduction of net pension liability) for its proportionate share of the State of Minnesota’s on-behalf
contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin
contributing $9 million to the PEPFF each year, starting in fiscal year 2014
For the year ended December 31, 2016, the City recognized pension expense of $627,425 for its
proportionate share of the PEPFF’s pension expense. .
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
At December 31, 2016, the City reported its proportionate share of the PEPFF’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred OutflowsDeferred Inflows
of Resourcesof Resources
Differences between expected and
actual economic experience$ - $418,952
Changes in actuarial assumptions2,009,849 -
Difference between projected and
actual investment earnings557,320 -
Changes in proportion - 23,755
Contributions paid to PERA
subsequent to the measurement date71,591 -
Total$2,638,760$442,707
$71,591 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ended December 31, 2017. Other amounts reported as deferred
outflows and inflows of resources related to pensions will be recognized in pension expense as
follows:
Pension
Year EndedExpense
December 31,Amount
2017$456,590
2018456,590
2019456,591
2020411,555
2021343,136
Thereafter -
E.ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2016, actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.50% per year
Active Member Payroll Growth 3.25% per year
Investment Rate of Return 7.50%
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
survivors and disabilitants were based on 2014 tables for the GERF and RP-2000 tables for the PEPFF
for males or females, as appropriate, with slight adjustments. Cost of living benefit increases for
retirees are assumed to be 1% for all future years for the GERF and the PEPFF.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Actuarial assumptions used in the June 30, 2016, valuation were based on the results of actuarial
experience studies. The most recent four-year experience study in the GERF was completed in 2015.
The experience study for PEPFF was for the period July 1, 2004, through June 30, 2009. The most
recent five-year experience study for the Police and Fire Plan was completed in 2016, but the results
were not adopted at the time of valuation.
The following changes in actuarial assumptions occurred in 2016:
General Employees Fund
The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2035 and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 7.5%.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Police and Fire Fund
The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2037 and 2.5% thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
changed from 7.9% to 5.6%.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
The long-term expected rate of return on pension plan investments is 7.5%. The State Board of
Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a
regular basis of the long-term expected rate of return using a building-block method in which best-
estimate ranges of expected future rates of return are developed for each major asset class. These
ranges are combined to produce an expected long-term rate of return by weighting the expected future
rates of return by the target asset allocation percentages. The target allocation and best estimates of
geometric real rates of return for each major asset class are summarized in the following table:
TargetLong-Term Expected
Asset ClassAllocationReal Rate of Return
Domestic Stocks45%5.50%
International Stocks15%6.00%
Bonds18%1.45%
Alternative Assets20%6.40%
Cash2%0.50%
Total100%
F.DISCOUNT RATE
The discount rate used to measure the total pension liability in 2016 was 7.5%, a reduction from the
7.9% used in 2015. The projection of cash flows used to determine the discount rate assumed that
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
contributions from plan members and employees will be made at rates set in Minnesota Statutes. Based
on that assumption, the fiduciary net position of the GERFwas projected to be available to make all
projected future benefit payments of current plan members and employees. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
In the Police and Fire Fund, the fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members through June 30, 2056. Beginning in fiscal
years ended June 30, 2057 for the Police and Fire Fund, when projected benefit payments exceed the
funds’ projected fiduciary net position, benefit payments were discounted at the municipal bond rate of
2.85% based on an index of 20-year general obligation bonds with an average AA credit rating at the
measurement date. An equivalent single discount rate of 5.60% for the Police and Fire Fund was
determined that produced approximately the same present value of projected benefits when applied to
all years of projected benefits as the present value of projected benefits using 7.50% applied to all years
of projected benefits through the point of asset depletion and 2.85% after.
G.PENSION LIABILITY SENSITIVITY
The following presents the City’s proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what
the City’s proportionate share of the net pension liability would be if it were calculated using a discount
rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in1% Increase in
Discount Rate (6.5%)Discount Rate (7.5%)Discount Rate (8.5%)
City's proportionate share of the
GERF net pension liability$1,360,788$958,101$626,397
- - -
1% Decrease in1% Increase in
Discount Rate (4.6%)Discount Rate (5.6%)Discount Rate (6.6%)
City's proportionate share of the
PEPFF net pension liability$5,112,299$3,651,988$2,458,804
H.PENSION PLAN FIDUCIARY NET POSITION
Detailed information about each pension plan’s fiduciary net position is available in a separately-issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained on the Internet at www.mnpera.org.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
I.PENSION EXPENSE
Pension expense recognized by the City for the fiscal year ended December 31, 2016 is as follows:
GERF$113,591
PEPFF627,495
Total$741,086
J.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.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less
administrative expenses. The City Council specifies plan provisions, including employee and
employer contributions rates. An eligible participant contributes 0% of salary and the city contributes
10% of annual base salary.
Total contributions made by the City during fiscal year 2016 were:
Contribution AmountPercentage of Covered PayrollRequired
Employer
Employee(Pension Expense)EmployeeEmployerRate
0%$11,9520%10%10%
Note 8 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS
The City does not provide post employment benefits other than permitting retired employees to continue in the
City’s group health insurance plan, as required by Minnesota Statutes. The retiree is required to pay 100% of
the premium. The premium charged is age adjusted, so there is not an implicit rate subsidy for retirees who
continue on the plan.
The City is also required by State Statute to provide post-employment health care benefits for retired employees
disabled in the line of duty. The City hired an actuary and determined the liability resulting from disability is not
material and therefore not included in these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 9 INTERFUND TRANSFERS
Major Funds
Capital Street Renewal and Budgeted Capital Nonmajor
Improvement ReconstructionReplacement Projects and Improvement Governmental
Bonds of 2014AFundFund EqupimentBonds of 2008FundsTotal
Transfers out:
Governmental activities:
General Fund$38,000$364,200$ - $971,304$440,000$328,500$2,142,004
Street Reconstruction Fund - - - - - - -
Renewal and Replacement Fund - 144,615 - - - - 144,615
Capital Improvement Bonds of 2008 - - - - - 99,56299,562
Nonmajor Governmental Funds - 54,930 - - 4,860,000 - 4,914,930
Business-type activities:
Water Utility Fund101,000 - 188,01291,934 - 50,968431,914
Sewer Utility Fund - - 160,04946,400 - 1,938208,387
Storm Sewer Utility Fund - - - 11,233 - - 11,233
Total transfers$139,000$563,745$348,061$1,120,871$5,300,000$480,968$7,952,645
During 2016, 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.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, 2016.
B.FIRE PROTECTION AND EMERGENCY SERVICES
The City contracts with the City of Bayport to provide fire protection and emergency services. During
2015, the City entered into an additional agreement with the City of Bayport for a new fire station. The
cost-sharing method for financing the fire station project is based on the “fair share formula” currently
used to calculate the annual operating cost that the City of Bayport charges the City for fire protection
and emergency services. The total amount expended for the year ended December 31, 2016 was
$91,139. The remaining commitment is $1,275,941 and is to be paid in annual installments of $91,139
for the next 14 years.
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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.
Note 12 FUND BALANCE
A.CLASSIFICATIONS
Definitions of fund balance classifications are included in Note 1.O. At December 31, 2016, a
summary of the governmental fund balance classifications are as follows:
Budgeted
Projects andG.O. CapitalG.O. CapitalRenewal andOther
TIFEquipmentImprovementImprovementStreetReplacementGovernmental
General FundDistrict #2RevolvingBonds of 2008Bonds of 2014ReconstructionFundFundsTotal
Nonspendable:
Prepaid items$63,813$ - $ - $ - $ - $ - $ - $ - $63,813
Restricted for:
Law enforcement - - - - - - - 7,3687,368
Tax increment - - - - - - - 122,058122,058
Debt service - - - - 1,052,932 - - 133,2731,186,205
Small cities grant - - - - - - - - -
Park improvements - - - - - - - 162,926162,926
Moelter Park improvements - - - - - - - 188,973188,973
Total restricted00001,052,93200614,5981,667,530
Assigned for:
Compensated absences140,000 - - - - - - - 140,000
Capital purposes - - 3,328,036 - - - 3,436,4534,294,12811,058,617
Street reconstruction - - - - - 1,868,617 - - 1,868,617
Economic development - - - - - - - 33,56833,568
Total assigned140,00003,328,036001,868,6173,436,4534,327,69613,100,802
Unassigned4,806,519(405,964) - - - - - - 4,400,555
Total$5,010,332($405,964)$3,328,036$0$1,052,932$1,868,617$3,436,453$4,942,294$19,232,700
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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, 2016, the unassigned fund balance of the General Fund was $4,806,519 which
sufficiently meets the cash flow and emergency needs described above.
Note 13 MAJOR TAXPAYER
The City has one major taxpayer, Xcel Energy. The total tax capacity value for this taxpayer represented
approximately 40.72% of the City's total tax capacity value for taxes payable in 2016.
Note 14 TAX ABATEMENTS – PAY-AS-YOU-GO TAX INCREMENT
The City provides tax abatements pursuant to Minnesota Statutes 469.174 to 469.1794 (Tax Increment
Financing) through a pay-as-you-go note program. Tax increment financing (TIF) can be used to encourage
private development, redevelopment, renovation and renewal, growth in low-to-moderate-income housing, and
economic development within the City. TIF captures the increase in tax capacity and property taxes from
development or redevelopment to provide funding for the related project.
The City has one tax increment pay-as-you-go agreements. The agreements are not a general obligation of the
City and are payable solely from available tax increment. Accordingly, these agreements are not reflected in the
financial statements of the City. Details of the pay-as-you-go notes are as follows:
TIF District #1-1, Oakgreen Project:
Issued in 2010 in the principal sum of $1,200,000 with an interest rate of 6.90% per annum. Principal and
interest shall be paid on February 1, 2011 and each February 1 and August 1 thereafter to and including
February 1, 2026. Payments are payable solely from available tax increment derived from the
developed/redeveloped property and paid to the City.The pay-as-you-go note provides for payment to the
developer equal to 80% of all tax increment received in the prior six months. The payment reimburses the
developer for certain public improvements. Principal and interest payments will be completed February 1,
2026. The City shall have no obligation to pay any unpaid balance of principal or accrued interest that may
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
remain after the final payment on February 1, 2026. The current year abatement (TIF note payments)
amounted to $148,432. At December 31, 2016, 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, 2016, there were five series of Industrial Revenue Bonds outstanding. The principal
amount payable at December 31, 2016 was $95,640,000.
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:
2016
LeaseAnnual LeaseExpirationRenewal
LocationLesseeAmountAdjustment Factor*DateOptions
58th and NorrellSprint PCS$38,791Greater 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. 74Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. The
provisions in Statement 74 are effective for fiscal years beginning after June 15, 2016.
Statement No. 75Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions.
The provisions in Statement 75 are effective for fiscal years beginning after June 15, 2017.
Statement No. 80Blending Requirements for Certain Component Units. The provisions of this Statement
are effective for reporting periods beginning after June 15, 2016.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Statement No. 81Irrevocable Split-Interest Agreements. The provisions of this Statement are effective for
reporting periods beginning after December 15, 2016.
Statement No. 82Pension Issues – an amendment of GASB Statement No. 67, No. 68 and No. 73. The
provisions of this Statement are effective for reporting periods beginning after June 15, 2016.
Statement No. 83Certain Asset Retirement Obligations. The provisions of this Statement are effective for
reporting periods beginning after June 15, 2018.
Statement No. 84Fiduciary Activities. The provisions of this Statement are effective for reporting periods
beginning after December 15, 2018.
Statement No. 85 Omnibus 2017. The provisions of this Statement are effective for reporting periods
beginning after June 15, 2017.
The effect these standards may have on future financial statements is not determinable at this time.
Note 18 PRIOR PERIOD ADJUSTMENT
For the year ended December 31, 2015, the City implemented GASB Statement No. 68, Accounting and
Financial Reporting for Pension – an Amendment of GASB Statement No. 27. GASB 68 addresses accounting
and financial reporting for pension plans that are provided to employees of state and local governments. The
standard requires the City to record its share of the net pension liability of defined benefit plans, as well as any
corresponding deferred inflows and outflows of resources. See Note 7 for further information.
The standard required retroactive implementation which resulted in a restatement of net position as of December
31, 2014. Certain amounts necessary to restate 2014 financial information are not determinable, therefore, prior
year comparative amounts have not been restated. Details of the prior period adjustment are as follows:
Governmental Internal Service Fund
ActivitiesPension Benefits
Net position - January 1, 2015, as previously reported$30,370,432$ -
Prior period adjustment:
Deferred outflows of resources - pension related84,72084,720
Net pension liability(1,672,420)(1,672,420)
Net position - January 1, 2015, as restated$28,782,732($1,587,700)
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, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
Variance
with Final
Budget -
2016 Actual Positive2015 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Revenues:
Property taxes$5,191,593$5,191,593$5,295,590$103,997$5,053,681
Abatement of property taxes - - (23,549)(23,549)(21,976)
Payment in lieu of taxes72,45072,45074,9942,54473,251
Total property taxes5,264,0435,264,0435,347,03582,9925,104,956
Intergovernmental:
PERA aid2,0402,0402,040 - 2,039
Police aid60,00060,00085,50225,50278,435
Recycling grant9,0009,00014,2425,24214,242
Safe and Sober grant4,0004,0006,3112,3117,067
Small Cities grant - - - - 54,188
Other public works grants12,00012,0003,046(8,954)938
Total intergovernmental87,04087,040111,14124,101156,909
Licenses and permits86,67786,677214,182127,505125,704
Charges for services:
General government14,15014,15042,44428,29435,034
Administrative - Enterprise Fund4,6504,6504,400(250)4,242
Development charge40,00040,00041,9381,938109,365
Total charges for services58,80058,80088,78229,982148,641
Fines and forfeits50,00050,00040,876(9,124)64,515
Investment income - - 32,75432,75418,621
Refunds and reimbursements75,00075,000148,96673,966108,385
Donations and contributions - - - - 4,550
Total revenues5,621,5605,621,5605,983,736362,1765,732,281
Expenditures:
General government:
Mayor and city council:
Current:
Personal services63,52763,52759,3564,17155,825
Materials and supplies500500295205298
Other services and charges54,97554,97526,51528,46033,366
Total mayor and city council119,002119,00286,16632,83689,489
City administration:
Current:
Personal services236,906236,906221,68615,220231,072
Materials and supplies2,8502,8502,4424081,892
Other services and charges48,36748,36744,4493,91846,004
Total City administration288,123288,123268,57719,546278,968
Legal:
Current:
Personal services30,00045,00019,27625,72444,881
General management and building:
Current:
Materials and supplies11,90011,9006,4165,4848,079
Other services and charges179,260179,260159,89719,363134,779
Total general management and building191,160191,160166,31324,847142,858
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATIONStatement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUNDPage 2 of 4
For The Year Ended December 31, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
Variance
with Final
Budget -
2016 Actual Positive2015 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Expenditures: (continued)
General government: (continued)
Elections:
Current:
Personal services$9,000$9,000$4,396$4,604$820
Materials and supplies80080043136932
Other services and charges1,3001,3001,2937604
Total elections11,10011,1006,1204,9801,456
Finance:
Current:
Personal services164,225164,225164,715(490)153,515
Materials and supplies2,8002,8001,4791,3211,271
Other services and charges31,59531,59527,8463,74925,550
Total finance198,620198,620194,0404,580180,336
Computer system:
Current:
Materials and supplies5,9005,9003,2632,6371,111
Other services and charges45,20045,20033,46111,73935,615
Total computer system51,10051,10036,72414,37636,726
Audit:
Current:
Personal services30,50030,50025,2465,25430,555
Insurance:
Current:
Other services and charges399,177399,177352,27946,898354,939
Assessing:
Current:
Personal services23,50023,50023,06843222,716
Planning and zoning:
Current:
Personal services30,00030,00027,3482,65234,100
Materials and supplies200200 - 200 -
Other services and charges1,8001,8005251,275935
Total planning and zoning32,00032,00027,8734,12735,035
Engineering:
Current:
Other services and charges27,85042,85018,83324,01724,310
General contingency:
Current:
Other services and charges15,00015,00076814,2328,229
Total general government1,417,1321,447,1321,225,283221,8491,250,498
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATIONStatement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUNDPage 3 of 4
For The Year Ended December 31, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
Variance
with Final
Budget -
2016 Actual Positive2015 Actual
Amounts(Negative)Amounts
Budgeted Amounts
Expenditures: (continued)OriginalFinal
Public safety:
Police department:
Current:
Personal services$1,092,820$1,092,820$1,017,937$74,883$1,012,598
Materials and supplies66,85066,85044,56222,28845,828
Other services and charges244,766244,766226,45718,309224,342
Total police department1,404,4361,404,4361,288,956115,4801,282,768
Building inspections:
Current:
Personal services83,52383,52382,3441,17984,313
Materials and supplies3,3003,3001,6551,645779
Other services and charges23,28123,28113,9019,38013,484
Total building inspections110,104110,10497,90012,20498,576
Fire protection:
Current:
Materials and supplies2,0002,0002,000 - 2,000
Other services and charges231,201231,201233,587(2,386)225,147
Total fire protection233,201233,201235,587(2,386)227,147
Civil defense:
Current:
Other services and charges3,6003,600973,503975
Animal control:
Current:
Materials and supplies150150589260
Other services and charges1,5001,5001201,3801,305
Total animal control1,6501,6501781,4721,365
Total public safety1,752,9911,752,9911,622,718130,2731,610,831
Public works:
Street maintenance:
Current:
Personal services26,12526,12523,2122,91325,089
Materials and supplies15,20015,2009,2815,9197,847
Other services and charges59,09659,09625,20833,88831,631
Total street maintenance100,421100,42157,70142,72064,567
Snow removal:
Current:
Materials and supplies1,0001,000125875 -
Other services and charges251,000251,00093,654157,34679,726
Total snow removal252,000252,00093,779158,22179,726
Sanitation:
Current:
Other services and charges210,150210,150204,4345,716199,771
Street lighting:
Current:
Other services and charges72,00072,00065,2326,76866,935
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATIONStatement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUNDPage 4 of 4
For The Year Ended December 31, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
Variance
with Final
Budget -
2016 Actual Positive2015 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Expenditures: (continued)
Public works: (continued)
Arborist:
Current:
Personal services$5,000$5,000$ - $5,000$11,730
Materials and supplies100100752597
Other services and charges5050355(305)708
Total arborist5,1505,1504304,72012,535
Tree removal and planting:
Current:
Other services and charges35,00035,00033,7351,26535,473
Total public works674,721674,721455,311219,410459,007
Parks and recreation:
Parks, playgrounds and rinks:
Current:
Personal services70,31170,31162,0248,28758,903
Materials and supplies30,90030,90025,6565,24428,767
Other services and charges82,03082,03076,6315,39966,674
Total parks and recreation183,241183,241164,31118,930154,344
Total expenditures4,028,0854,058,0853,467,623590,4623,474,680
Revenues over expenditures
1,593,4751,563,4752,516,113952,6382,257,601
Other financing sources (uses):
Sale of property - - 3,6903,690 -
Transfers in27,000 - - - -
Transfers out(1,620,475)(2,142,004)(2,142,004) - (1,527,875)
Total other financing sources (uses)(1,593,475)(2,142,004)(2,138,314)3,690(1,527,875)
Net change in fund balance$0($578,529)377,799$956,328729,726
Fund balance - January 14,632,5333,902,807
Fund balance - December 31$5,010,332$4,632,533
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATIONStatement 11
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY* -
GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2016
State'sCity's Proportionate
Proportionate Share of the NetCity's
City'sCity'sShare (Amount) Pension Liability andProportionate Share
ProportionateProportionateof the Net the State's Proportionateof the Net PensionPlan Fiduciary
ShareShare (Amount)Pension Share of the NetLiability as aNet Position as
(Percentage) ofof the NetLiabilityPension LiabilityPercentage of itsa Percentage
Measurement Fiscal Yearthe Net PensionPensionAssociated with Associated with CoveredCoveredof the Total
DateEndingLiabilityLiability (a)City (b)City (a+b)Payroll (c)Payroll ((a+b)/c)Pension Liability
June 30, 2015December 31, 20150.0121%$627,085$ - $627,085$710,89888.2%78.2%
June 30, 2016December 31, 20160.0118%958,10112,561970,662733,895132.3%68.9%
* The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATIONStatement 12
SCHEDULE OF PENSION CONTRIBUTIONS* - GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2016
StatutorilyContributions inContributionContributions as a
Required Relation to theDeficiencyCoveredPercentage of
Fiscal YearContributionStatutorily Required(Excess)PayrollCovered
Ending(a)Contribution (b)(a-b)(c)Payroll (b/c)
December 31, 2015$54,492$54,492$ -$726,5547.5%
December 31, 201654,65554,655 -728,7427.5%
* The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATIONStatement 13
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY* -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2016
Proportionate Share
Proportionateof the Net PensionPlan Fiduciary
ProportionShare (Amount)Liability as aNet Position as
(Percentage) ofof the NetPercentage of itsa Percentage
Measurement Fiscal Yearthe Net PensionPensionCoveredCoveredof the Total
DateEndingLiabilityLiability (a)Payroll (b)Payroll (a/b)Pension Liability
June 30, 2015December 31, 20150.0920%$1,045,335$841,195124.3%86.6%
June 30, 2016December 31, 20160.0910%3,651,988879,643415.2%63.9%
* The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATIONStatement 14
SCHEDULE OF PENSION CONTRIBUTIONS* - PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2016
StatutorilyContributions inContributionContributions as a
Required Relation to theDeficiencyCoveredPercentage of
Fiscal YearContributionStatutorily Required(Excess)PayrollCovered
Ending(a)Contribution (b)(a-b)(c)Payroll (b/c)
December 31, 2015$143,144$143,144$ -$883,60816.2%
December 31, 2016139,111139,111 -858,71216.2%
* The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2016
Note A LEGAL COMPLIANCE – 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.
Note B PENSION INFORMATION
PERA – General Employees Retirement Fund
2016 Changes
Changes in Actuarial Assumptions:
-The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and
2.5% per year thereafter to 1.0% per year for all future years.
-The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed
from 7.9% to 7.5%.
-Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed
future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth
and 2.50% for inflation.
PERA – Public Employees Police and Fire Fund
2016 Changes
Changes in Actuarial Assumptions:
-The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and
2.5% thereafter to 1.0% per year for all future years.
-The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed
from 7.9% to 5.6%.
-The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25%
for payroll growth and 2.50% for inflation.
COMBINING AND INDIVIDUAL NONMAJOR
FUND FINANCIAL STATEMENTS
NONMAJOR GOVERNMENTAL FUNDS
CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINING BALANCE SHEETStatement 15
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2016
With Comparative Totals For December 31, 2015
Totals
Nonmajor
SpecialDebtCapitalGovernmental Funds
AssetsRevenueServiceProject20162015
Cash and investments$237,210$133,273$4,656,640$5,027,123$6,952,419
Accrued interest receivable - - - - 12,188
Accounts receivable - net - - - - 2,000
Due from other governments - - - - 1,525
Land held for resale126,000 - - 126,000126,000
Total assets$363,210$133,273$4,656,640$5,153,123$7,094,132
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$74,216$ - $1,097$75,313$90,391
Contracts payable - - 6,1226,122 -
Unearned revenue - - 3,3943,3943,233
Total liabilities74,216010,61384,82993,624
Deferred inflows of resources:
Unavailable revenue126,000 - - 126,000126,000
Fund balance:
Restricted129,426133,273351,899614,598755,683
Assigned33,568 - 4,294,1284,327,6966,118,825
Total fund balance162,994133,2734,646,0274,942,2946,874,508
Total liabilities, deferred inflows
of resources, and fund balance$363,210$133,273$4,656,640$5,153,123$7,094,132
CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 16
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
Totals
Special DebtCapitalNonmajor Governmental Funds
RevenueServiceProject20162015
Revenues:
Intergovernmental$ - $ - $380,000$380,000$ -
Tax increment185,539 - - 185,539184,251
Charges for services - - 47,87147,871252,906
Fines and forfeits10,863 - - 10,8632,655
Investment income1,20547,47039,48488,15942,434
Refunds and reimbursements421 - - 42118,476
Donations - - 16,78316,783 -
Total revenues198,028 47,470 484,138 729,636 500,722
Expenditures:
Current:
General government150,630 - - 150,630239,495
Public safety13,093 - - 13,0939,962
Public works - - 13,73013,73019,913
Parks and recreation - - 39,94139,94122,072
Capital outlay - - 202,187202,18763,003
Debt service:
Principal - 125,000 - 125,000335,000
Interest - 132,225 - 132,225236,275
Total expenditures163,723 257,225 255,858 676,806 925,720
Revenues over (under) expenditures34,305 (209,755)228,280 52,830 (424,998)
Other financing sources (uses):
Transfers in - 241,562239,406480,9681,482,065
Transfers out - (4,860,000)(54,930)(4,914,930)(97,100)
Total other financing sources (uses)0 (4,618,438)184,476 (4,433,962)1,384,965
Net change in fund balance34,305 (4,828,193)412,756 (4,381,132)959,967
Fund balance - January 1128,6894,961,4664,233,2719,323,4265,914,541
Fund balance - December 31$162,994$133,273$4,646,027$4,942,294$6,874,508
Reconciliation of beginning fund balance to prior year ending fund balance:
Prior year ending fund balance reported above$6,874,508
Add prior year ending fund balance for funds reported as major in the prior year and nonmajor
in the current year:
528 G.O. CIP Refunding Bonds of 2012A4,941,725
500 Capital Revolving Fund26,189
Add prior year ending fund balance for funds reported as nonmajor in the prior year and major
in the current year:
526 G.O. Capital Improvement Bonds of 2008(95,999)
401 Budgeted Projects and Equipment Revolving(2,422,997)
Current year beginning fund balance$9,323,426
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEETStatement 17
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2016
With Comparative Totals For December 31, 2015
202 Forfeiture 204 Economic 205 TIF
Totals Nonmajor Special
and SeizureDevelopmentDistrict #1
Revenue Funds
Assets20162015
Cash and investments$7,368$33,568$196,274$237,210$202,019
Accrued interest receivable - - - - 230
Accounts receivable - - - - 2,000
Land held for resale - 126,000 - 126,000126,000
Total assets$7,368$159,568$196,274$363,210$330,249
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$ - $ - $74,216$74,216$75,560
Total liabilities0074,21674,21675,560
Deferred inflows of resources:
Unavailable revenue - 126,000 - 126,000126,000
Fund balance:
Restricted7,368 - 122,058129,42695,437
Assigned - 33,568 - 33,56833,252
Total fund balance7,36833,568122,058162,994128,689
Total liabilities, deferred infows
of resources, and fund balance$7,368$159,568$196,274$363,210$330,249
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,Statement 18
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
202 Forfeiture 204 Economic 205 TIF Totals Nonmajor Special
and SeizureDevelopmentDistrict #1Revenue Funds
20162015
Revenues:
Tax increment$ - $ - $185,539$185,539$184,251
Confiscated property10,863 - - 10,8632,655
Investment income813168081,205670
Refunds and reimbursements421 - - 4211,001
Total revenues11,365 316 186,347 198,028 188,577
Expenditures:
Current:
General government - - 150,630150,630148,109
Public safety13,093 - - 13,0939,962
Total expenditures13,093 0 150,630 163,723 158,071
Revenues over (under) expenditures(1,728)316 35,717 34,305 30,506
Other financing sources (uses):
Transfers in - - - - 3,000
Net change in fund balance(1,728)316 35,717 34,305 33,506
Fund balance - January 19,09633,25286,341128,68995,183
Fund balance - December 31$7,368$33,568$122,058$162,994$128,689
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEETStatement 19
NONMAJOR DEBT SERVICE FUNDS
December 31, 2016
With Comparative Totals For December 31, 2015
527 G.O.
Capital528 G.O. CIP
ImprovementRefunding
Bonds of 2009Bonds of 2012ATotal Nonmajor Debt Service Funds
20162015
Assets
Cash and investments$19,000$114,273$133,273$35,015
Cash with escrow agent - - - 4,926,338
Accrued interest receivable - - - 113
Total assets$19,000 $114,273 $133,273 $4,961,466
Liabilities and Fund Balance
Liabilities$ - $ - $ - $ -
Fund balance:
Restricted19,000114,273133,2734,961,466
Total liabilities and fund balance$19,000 $114,273 $133,273 $4,961,466
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CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,Statement 20
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
527 G.O. Capital 528 G.O. CIP
ImprovementRefunding Bonds
Bonds of 2009of 2012A
Total Nonmajor Debt Service Funds
20162015
Revenues:
Intergovernmental
Investment income$432$47,038$47,470$1,248
Expenditures:
Debt service:
Principal125,000 -125,000335,000
Interest18,173114,052132,225236,275
Total expenditures143,173114,052257,225571,275
Revenues over (under) expenditures(142,741)(67,014)(209,755)(570,027)
Other financing sources (uses):
Transfers in142,00099,562241,562570,000
Transfers out - (4,860,000)(4,860,000) -
Total other financing sources (uses)142,000(4,760,438)(4,618,438)570,000
Net change in fund balance(741)(4,827,452)(4,828,193)(27)
Fund balance - January 119,7414,941,7254,961,466115,767
Fund balance - December 31$19,000 $114,273 $133,273 $115,740
Reconciliation of beginning fund balance to prior year ending fund balance:
Prior year ending fund balance reported above$115,740
Add prior year ending fund balance for funds reported as major in the prior year and nonmajor
in the current year:
528 G.O. CIP Refunding Bonds of 2012A4,941,725
Add prior year ending fund balance for funds reported as nonmajor in the prior year and major
in the current year:
526 G.O. Capital Improvement Bonds of 2008(95,999)
Current year beginning fund balance$4,961,466
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2016
With Comparative Totals For December 31, 2015
712 Storm
Sewer
500 Capital Renewal /
405 Park 407 Moelter Revolving572 City Hall Replacement
DevelopmentParkFundImprovementsFund
Assets
Cash and investments$732,627$249,371$375,884$93,681$476,449
Accounts receivable - - - - -
Due from other governments - - - - -
Accrued interest receivable - - - - -
Total assets$732,627 $249,371 $375,884 $93,681 $476,449
Liabilities and Fund Balance
Liabilities:
Accounts payable$1,097$ - $ - $ - $ -
Contracs payable - 6,122 - - -
Unearned revenue - - - - -
Totalliabilities1,097 6,122 0 0 0
Deferred inflows of resources
Unavailable revenue - - - - -
Fund balance:
Restricted162,926188,973 - - -
Assigned568,60454,276375,88493,681476,449
Total fund balance731,530 243,249 375,884 93,681 476,449
Total liabilities, deferred inflows of resources,
and fund balance $732,627 $249,371 $375,884 $93,681 $476,449
Statement 21
734 Water 771 Sanitary 773 AAE -
Tower735 Well 736 Sewer Sewer772 Water Storm Sewer
Totals Nonmajor Capital Project
RehabilitationRehabilitationRehabilitationConnectionConnectionConnection
Funds
20162015
$443,407$134,487$55,616$460,035$625,266$1,009,817$4,656,640$4,249,031
- - - - - - - -
- - - - - - - 430,564
- - - - - - - 7,684
$443,407 $134,487 $55,616 $460,035 $625,266 $1,009,817 $4,656,640 $4,687,279
$ - $ - $ - $ - $ - $ - $1,097$21,736
- - - - - - 6,122 -
3,394 - - - - - 3,3943,233
3,394 0 0 0 0 0 10,613 24,969
- - - - - - - 429,039
- - - - - - 351,899544,506
440,013134,48755,616460,035625,2661,009,8174,294,1283,688,765
440,013 134,487 55,616 460,035 625,266 1,009,817 4,646,027 4,233,271
$443,407 $134,487 $55,616 $460,035 $625,266 $1,009,817 $4,656,640 $4,687,279
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
712 Storm
Sewer
500 Capital Renewal /
405 Park 407 Moelter Revolving572 City Hall Replacement
DevelopmentParkFundImprovementsFund
Revenues:
Intergovernmental$ - $ - $380,000$ - $ -
Charges for services:
Rents - - - - -
Connection charges - - - - -
Investment income6,1353,550(115)8824,160
Refunds and reimbursements - - - - -
Donations16,783 - - - -
Total revenues22,9183,550379,8858824,160
Expenditures:
Current:
General government - - - - -
Public works - - 2,381 - -
Parks and recreation39,941 - - - -
Capital outlay12,911156,53827,809 - -
Total expenditures52,852156,53830,19000
Revenues over (under) expenditures(29,934)(152,988)349,6958824,160
Other financing sources (uses):
Transfers in100,000 - - - 86,500
Transfers out - - - - (54,930)
Total other financing sources (uses)100,00000031,570
Net change in fund balance70,066(152,988)349,69588235,730
Fund balance - January 1661,464396,23726,18992,799440,719
Fund balance - December 31$731,530 $243,249 $375,884 $93,681 $476,449
Statement 22
734 Water 771 Sanitary 773 AAE -
Tower735 Well 736 Sewer Sewer772 Water Storm Sewer
Totals Nonmajor Capital Project
RehabilitationRehabilitationRehabilitationConnectionConnectionConnection
Funds
20162015
$ - $ - $ - $ - $ - $ - $380,000$ -
38,791 - - - - - 38,79136,944
- - - 1,2826,6621,1369,080215,962
3,4871,2085014,3255,8459,50639,48440,516
- - - - - - - 17,475
- - - - - - 16,783 -
42,2781,2085015,60712,50710,642484,138310,897
- - - - - - - 91,386
11,349 - - - - - 13,73019,913
- - - - - - 39,94122,072
- 4,929 - - - - 202,18763,003
11,3494,9290000255,858196,374
30,929(3,721)5015,60712,50710,642228,280114,523
40,47910,4891,938 - - - 239,406909,065
- - - - - - (54,930)(97,100)
40,47910,4891,938000184,476811,965
71,4086,7682,4395,60712,50710,642412,756926,488
368,605127,71953,177454,428612,759999,1754,233,2715,703,591
$440,013 $134,487 $55,616 $460,035 $625,266 $1,009,817 $4,646,027 $6,630,079
Reconciliation of beginning fund balance to prior year ending fund balance:
Prior year ending fund balance reported above$6,630,079
Add prior year ending fund balance for funds reported as major in the prior year and nonmajor
in the current year:
500 Capital Revolving Fund26,189
Add prior year ending fund balance for funds reported as nonmajor in the prior year and major
in the current year:
401 Budgeted Projects and Equipment Revolving(2,422,997)
Current year beginning fund balance$4,233,271
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEETStatement 23
AGENCY FUNDS
December 31, 2016
With Comparative Totals For December 31, 2015
902 Developer 903 Developer
Deposit FundEscrow FundTotals - Agency Funds
20162015
Assets
Cash and investments$225,099$165,997$391,096$274,893
Due from developers17,715 - 17,71515,891
Total assets$242,814 $165,997 $408,811 $290,784
Liabilities
Escrow deposits payable$ - $165,997$165,997$146,000
Accounts payable6,566 - 6,56618,446
Due to developers236,248 - 236,248126,338
Total liabilities$242,814 $165,997 $408,811 $290,784
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIESStatement 24
AGENCY FUNDS
For The Year Ended December 31, 2016
BalanceBalance
January 1,December 31,
2016AdditionsDeletions2016
902 Developer Deposit Fund
Assets:
Cash and investments$128,893$177,497$81,291$225,099
Due from developers15,89117,71515,89117,715
Total assets$144,784$195,212$97,182$242,814
Liabilities:
Accounts payable$18,446$145,958$157,838$6,566
Due to developers126,338236,248126,338236,248
Total liabilities$144,784$382,206$284,176$242,814
903 Developer Escrow Fund
Assets:
s$146,000$123,197$103,200$165,997
Cash and investment
Liabilities:
Escrow deposits payable$146,000$123,197$103,200$165,997
Total Agency:
Assets:
Cash and investments$274,893$300,694$184,491$391,096
Due from developers15,89117,71515,89117,715
Total assets$290,784$318,409$200,382$408,811
Liabilities:
Escrow deposits payable$146,000$123,197$103,200$165,997
Accounts payable18,446145,958157,8386,566
Due to developers126,338236,248126,338236,248
Total liabilities$290,784$505,403$387,376$408,811
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STATISTICAL SECTION (UNAUDITED)
CITY OF OAK PARK HEIGHTS, MINNESOTA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2007200820092010
Governmental activities:
Net investment in capital assets$11,799,071$12,328,032$11,908,771$11,519,528
Restricted614,170235,559867,1031,234,835
Unrestricted10,950,97811,705,19212,164,92513,308,712
Total governmental activities net position$23,364,219$24,268,783$24,940,799$26,063,075
Business-type activities:
Net investment in capital assets$6,355,129$6,227,796$6,925,825$6,752,968
Unrestricted1,355,5641,165,2051,156,2081,166,853
Total business-type activities net position$7,710,693$7,393,001$8,082,033$7,919,821
Primary government:
Net investment in capital assets$18,154,200$18,555,828$18,834,596$18,272,496
Restricted614,170235,559867,1031,234,835
Unrestricted12,306,54212,870,39713,321,13314,475,565
Total primary government net position$31,074,912$31,661,784$33,022,832$33,982,896
Note: GASB 68 was implemented in 2015, net position was restated for 2014 to reflect the reporting of net pension
liability and pension related deferred outflows of resources. Net position for years prior to 2015 was not restated.
Table 1
201120122013201420152016
$11,381,436$11,172,202$11,849,446$11,756,453$14,030,120$11,918,132
1,152,7891,007,208842,2101,355,9602,464,3682,353,250
13,958,68915,242,15715,826,32717,258,01913,890,90315,317,945
$26,492,914$27,421,567$28,517,983$30,370,432$30,385,391$29,589,327
$6,964,787$6,746,344$6,604,514$6,774,330$8,069,044$12,010,748
1,135,6791,279,8741,448,7881,746,0161,923,2771,948,701
$8,100,466$8,026,218$8,053,302$8,520,346$9,992,321$13,959,449
$18,346,223$17,918,546$18,453,960$18,530,783$22,099,164$23,928,880
1,152,7891,007,208842,2101,355,9602,464,3682,353,250
15,094,36816,522,03117,275,11519,004,03515,814,18017,266,646
$34,593,380$35,447,785$36,571,285$38,890,778$40,377,712$43,548,776
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2007200820092010
Expenses
Governmental activities:
General government$1,046,676$1,477,836$1,356,038$1,575,297
Public safety1,234,7691,347,1641,364,7341,407,161
Public works796,025796,532957,308980,630
Parks and recreation184,008224,426211,795201,716
Interest on long-term debt37,255138,399262,586280,548
Total governmental activities expenses3,298,7333,984,3574,152,4614,445,352
Business-type activities:
Water387,766405,965434,577466,218
Sanitary sewer606,458670,661680,468740,184
Storm sewer34,27759,11543,337108,467
Sanitation153,848 - - -
Total business-type activities expenses1,182,3491,135,7411,158,3821,314,869
Total primary government expenses$4,481,082$5,120,098$5,310,843$5,760,221
Program revenues
Governmental activities:
Charges for services:
Licenses and permits$155,820$203,041$100,074$197,181
Administrative - Enterprise Fund63,20062,04064,40066,420
Direct charges to developers244,895 - - -
Connection charges34,595 - 5,419147,098
Park fees - - - 241,440
Refunds and reimbursements105,832153,267112,856117,735
Other activities151,00284,905112,161180,639
Operating grants and contributions142,87990,54888,187145,048
Capital grants and contributions11,32410,091688,97576,970
Total governmental activities program revenues909,547603,8921,172,0721,172,531
Business-type activities:
Charges for services:
Water482,100475,658546,606565,859
Sanitary sewer679,821656,809651,022749,378
Storm sewer73,94274,25774,47375,698
Sanitation97,764494 - -
Operating grants and contributions - - - -
Capital grants and contributions - - - -
Total business-type activities
program revenues1,333,6271,207,2181,272,1011,390,935
Total primary government program revenues$2,243,174$1,811,110$2,444,173$2,563,466
Table 2
Page 1 of 2
201120122013201420152016
$1,381,589$1,455,359$1,601,402$1,663,866$1,685,452$1,708,148
1,411,6901,431,5941,497,7651,565,5441,564,0582,226,491
999,4731,128,2491,080,4371,020,664903,8581,548,584
239,100248,243269,929285,877315,390373,279
275,196377,713463,537463,217406,215394,165
4,307,0484,641,1584,913,0704,999,1684,874,9736,250,667
472,040470,266468,932477,771496,607614,628
746,656668,588695,817694,406749,937909,565
48,36043,90458,23946,39360,08164,321
- - - - - -
1,267,0561,182,7581,222,9881,218,5701,306,6251,588,514
$5,574,104$5,823,916$6,136,058$6,217,738$6,181,598$7,839,181
$131,081$163,986$90,910$137,543$125,704$214,182
69,4253,8304,1804,2484,2424,400
- - - - 109,36541,938
18,824 - - - 215,9629,080
- - - - - 16,783
114,847125,243108,83890,109105,206166,633
107,860102,320390,340178,687139,148132,974
96,402112,91299,171101,443105,231109,101
15,94324,131341,9911,121,1741,209,43275,110
554,382532,4221,035,4301,633,2042,014,290770,201
648,663714,660720,590657,286781,537781,892
782,266800,281833,063927,129881,428924,105
66,74083,76288,06382,45282,88183,278
- - - - - -
4,594 - - - 7,9301,382
- - 23,2341,248516 -
1,502,2631,598,7031,664,9501,668,1151,754,2921,790,657
$2,056,645$2,131,125$2,700,380$3,301,319$3,768,582$2,560,858
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2007200820092010
Net (expense) revenue:
Governmental activities($2,389,186)($3,380,465)($2,980,389)($3,272,821)
Business-type activities151,27871,477113,71976,066
Total primary government net
(expense) revenue(2,237,908)(3,308,988)(2,866,670)(3,196,755)
General revenues and other changes in net position:
Governmental activities:
General property taxes and tax increment2,730,9943,146,0493,537,8293,692,127
Unrestricted grants and contributions111,09056,693180,430104,987
Investment earnings532,827606,996456,934320,183
Gain on sale of property9,23720,89512,165 -
Miscellaneous27,62622,14814,18616,588
Transfers(329,589)432,248(549,139)261,212
Total governmental activities3,082,1854,285,0293,652,4054,395,097
Business-type activities:
Investment earnings60,10343,08026,17422,934
Unrestricted grants and contributions - - - -
Loss on sale of capital assets - - - -
Other - - - -
Transfers329,589(432,248)549,139(261,212)
Total business-type activities389,692(389,168)575,313(238,278)
Total primary government$3,471,877$3,895,861$4,227,718$4,156,819
Change in net position:
Governmental activities$692,999$904,564$672,016$1,122,276
Business-type activities540,970(317,691)689,032(162,212)
Total primary government$1,233,969$586,873$1,361,048$960,064
Note: GASB 68 was implemented in 2015. Pension expense for years prior to 2015 was not restated.
Table 2
Page 2 of 2
201120122013201420152016
($3,752,666)($4,108,736)($3,877,640)($3,365,964)($2,860,683)($5,480,466)
235,207415,945441,962449,545447,667202,143
(3,517,459)(3,692,791)(3,435,678)(2,916,419)(2,413,016)(5,278,323)
3,934,3094,289,5664,541,1034,706,9745,289,0305,504,099
2,0402,0402,0402,04010,32013,975
239,763204,422(85,474)421,387154,098202,911
8,9607,9501,95644,198 - -
17,71829,17226,52631,64422,65536,354
(20,285)504,239406,38012,170(1,012,761)(1,072,937)
4,182,5055,037,3894,892,5315,218,4134,463,3424,684,402
17,78014,046(7,026)29,66911,54717,091
- - - - - 2,674,692
- - (1,472) - - -
- - - - - 265
20,285(504,239)(406,380)(12,170)1,012,7611,072,937
38,065(490,193)(414,878)17,4991,024,3083,764,985
$4,220,570$4,547,196$4,477,653$5,235,912$5,487,650$8,449,387
$429,839$928,653$1,014,891$1,852,449$1,602,659($796,064)
273,272(74,248)27,084467,0441,471,9753,967,128
$703,111$854,405$1,041,975$2,319,493$3,074,634$3,171,064
CITY OF OAK PARK HEIGHTS, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2007200820092010
General Fund:
Nonspendable$ - $ - $ - $ -
Restricted - - - -
Assigned for:
Employee benefits183,000188,000188,000172,000
Ensuing year's budget - - 193,635100,000
Unassigned:
Cash flow reserve1,698,0001,541,0001,558,0001,593,000
General contingency reserve595,000542,000557,000554,000
Remaining unassigned balance39,620345,370223,377554,797
Total general fund$2,515,620$2,616,370$2,720,012$2,973,797
All other governmental funds:
Restricted for:
Debt service$460,263$127,247$102,115$97,296
Park improvements - - - -
Law enforcement - - - -
Tax increment - - - -
Unspent bond proceeds - - - -
Assigned, reported in:
Special revenue funds100,960102,181100,73788,471
Capital projects funds8,480,88414,977,67813,236,36111,188,968
Unassigned - - - -
Total all other governmental funds$9,042,107$15,207,106$13,439,213$11,374,735
Table 3
201120122013201420152016
$2,057$4,609$5,201$80,806$57,602$63,813
- - - -54,188 -
179,000165,000173,000159,000165,000140,000
- - - - - -
1,911,0002,060,0002,125,0002,293,0002,370,0002,365,000
698,000734,000777,000810,000847,000846,000
471,504706,024434,170560,0011,138,7431,595,519
$3,261,561$3,669,633$3,514,371$3,902,807$4,632,533$5,010,332
$112,571$5,309,831$5,192,539$5,393,708$6,222,184$1,186,205
913,170870,864815,549664,792544,506351,899
8,1556,9237,33013,3049,0967,368
-4,60419,33149,86086,341122,058
- - -1,118,479 - -
31,19831,62731,32432,01933,25233,568
10,704,78211,645,00312,100,25812,434,63810,998,02612,927,234
- - -(377,266)(406,043)(405,964)
$11,769,876$17,868,852$18,166,331$19,329,534$17,487,362$14,222,368
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2007200820092010
Revenues:
General property taxes$2,687,730$3,156,807$3,470,670$3,697,809
Tax increment - - - -
Special assessments42,34232,07843,81028,583
Licenses and permits155,820203,041100,074197,181
Intergovernmental188,594141,141276,772282,551
Charges for services192,545102,199107,392561,411
Fines and forfeits66,18963,60274,58873,761
Investment income532,827606,996456,934320,183
Direct charges to developers244,895 - - -
Refunds and reimbursements105,832134,987137,422134,323
Donations and contributions83,06427,672612,5252,184
Total revenues4,299,838 4,468,523 5,280,187 5,297,986
Expenditures:
Current:
General government1,002,7631,075,6161,117,8221,370,381
Public safety1,193,4511,292,4651,277,6001,312,335
Public works458,241632,530586,872592,897
Parks and recreation138,491146,928139,188125,414
Capital outlay1,327,754901,5644,957,6533,583,666
Debt service:
Principal retirement125,000750,000135,000250,000
Interest and other37,688134,850255,213272,000
Bond issuance costs - 111,02033,537 -
Total expenditures4,283,388 5,044,973 8,502,885 7,506,693
Revenues over (under) expenditures16,450 (576,450)(3,222,698)(2,208,707)
Other financing sources (uses):
Sale of capital assets9,23721,28912,200425
Bonds issued - 6,300,0001,195,000 -
Premium on bonds issued - 5,827 - -
Transfers in432,2801,790,9261,144,241397,589
Transfers out(76,800)(1,275,843)(792,994) -
Total other financing sources (uses)364,717 6,842,199 1,558,447 398,014
Net change in fund balance$381,167$6,265,749($1,664,251)($1,810,693)
Debt service as a percentage of noncapital expenditures5.5%21.9%11.1%13.3%
Debt service as percentage of total expenditures 3.8%17.5%4.6%7.0%
Table 4
201120122013201420152016
$3,984,389$4,245,360$4,433,202$4,620,521$5,104,956$5,347,035
- 26,583106,924125,120184,251185,539
22,95221,90620,731237,636381,071220,052
131,081163,98690,910137,543125,704214,182
97,442114,952102,211453,283165,950491,141
134,23749,441337,912120,050292,18294,715
60,82256,70956,60862,88567,17051,739
239,763204,422(85,474)421,387153,792202,911
- - - - 109,36541,938
132,565154,415135,364106,553594,254235,466
12,5004005002004,55016,783
4,815,751 5,038,174 5,198,888 6,285,178 7,183,245 7,101,501
1,178,7101,195,1211,378,8911,445,4801,519,7831,383,243
1,351,5671,394,5861,449,1031,535,3871,620,7931,734,623
605,955737,001805,776601,870482,846582,368
129,327132,497152,061162,892176,416244,052
767,988160,8561,103,3094,540,0434,111,439661,984
255,000275,000295,000315,000500,0005,615,000
266,675260,680362,436396,195426,133422,650
- 103,854 - 80,533 - -
4,555,222 4,259,595 5,546,576 9,077,400 8,837,410 10,643,920
260,529 778,579 (347,688)(2,792,222)(1,654,165)(3,542,419)
10,01024,4182,00044,400 - 3,690
- 5,140,000 - 3,775,000 - -
- 155,137 - 111,689 - -
412,366408,9142,274,5404,081,6622,992,2087,952,645
- - (1,868,160)(3,668,890)(2,450,489)(7,301,111)
422,376 5,728,469 408,380 4,343,861 541,719 655,224
$682,905$6,507,048$60,692$1,551,639($1,112,446)($2,887,195)
13.8%13.4%14.8%16.0%19.6%60.5%
11.5%12.6%11.9%7.8%10.5%56.7%
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
2007$3,318,052$3,331,910$1,733,703$88,073
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
2013 2,736,977 3,528,330 3,990,896 96,104
2014 2,834,815 3,424,868 3,904,920 96,659
2015 3,280,449 3,286,102 4,148,063 91,068
2016 3,465,171 3,279,638 4,228,710 118,877
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
$8,471,738$1,115,215$ - $7,356,52335.731$579,089,80086.8%
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%
10,352,3072,346,765 108,2547,897,28854.898641,169,000 76.3%
10,261,2622,467,230 126,6777,667,35559.641640,880,100 74.7%
10,805,6822,214,196 185,8708,405,61656.804689,680,000 77.8%
11,092,3962,292,994 187,7888,611,61457.725710,998,000 77.6%
CITY OF OAK PARK HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES Table 6
Last Ten Fiscal Years
Overlapping Rates
City
FiscalDirectSchoolOther
YearRateCountyDistrictDistrictsTotal
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
201556.80430.18621.1245.884113.997
201657.72530.56419.8494.568112.706
Source: Washington County website.
CITY OF OAK PARK HEIGHTS, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS Table 7
Current Year and Nine Years Ago
20162007
Percentage Percentage
Taxableof Total CityTaxableof Total City
CapacityCapacityCapacityCapacity
TaxpayerValueRankValueValueRankValue
Xcel Energy$4,517,378140.72%$1,924,048121.71%
VSSA Boutwells Landing LLC694,82926.26%290,60863.43%
Wal-Mart Real Estate Business294,78032.66%182,59272.16%
OPH Pat LLC & OPH Val LLC215,65841.94%318,74033.76%
Menard Inc.177,45051.60%216,930 52.56%
OP Stillwater LLC174,84661.47% - - 0.00%
Lowe's Home Centers, Inc.163,10271.58% - - 0.00%
SC Mall LLC159,25081.44%404,224 2 4.77%
W.A.T.E. Enterprises Inc.125,61091.13%125,15591.48%
Leonard Investments LLC86,400100.78% - - 0.00%
Raduenz Dealership - - 0.00%113,688101.34%
Prudential Insuance Co of America - - 0.00%243,294 42.87%
VSSA McKean West LLC - - 0.00%220,682 82.60%
Total$6,609,30359.58%$4,039,96146.69%
Total All Property $11,092,396$8,471,738
Source: Washington County
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)
2007$2,781,489$2,646,42195.14%($20,936)$2,625,48594.39%
(1)
20083,286,2303,211,39297.72%(35,600)3,175,79296.64%
(1)
20093,574,8553,447,96596.45%74,4323,522,39798.53%
(1)
20103,662,4553,584,02797.86%(21,756)3,562,27197.26%
(1)
20113,870,7703,819,22098.67%(43,184)3,776,03697.55%
(2)
20124,229,9244,176,12598.73%(80,164)4,095,96196.83%
(2)
2013 4,549,431 97.99%(43,325)4,414,56197.04%4,457,886
(2)
20144,803,959 98.47%(13,305)4,717,03898.19%4,730,343
(2)
20155,044,879 99.70%12,4495,042,26399.95%5,029,814
(2), (3)
20165,215,633 99.64% - 5,196,75899.64%5,196,758
(1)
The levy amount presented is after deduction for Market Value Homestead Credit.
(2)
The levy amount presented includes excess TIF Tax.
(3)
Net of green acres collections
CITY OF OAK PARK HEIGHTS, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE Table 9
Last Ten Fiscal Years
Governmental Activities
GeneralPercentage
FiscalObligationImprovementof TaxPer
YearBondsBondsTotalCapacityCapita
2007$ -$750,000$750,0008.85%$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
201514,385,000 - 14,385,000133.12%3,095
20168,770,000 -8,770,00079.06%1,864
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, 2016
Estimated
EstimatedShare of
DebtPercentageOverlapping
Governmental UnitOutstandingApplicableDebt
Debt repaid with property taxes:
Independent School District No. 834$113,990,0009.42%$10,737,858
Washington County138,065,0002.93%4,045,305
Metro Transit193,395,0000.29%560,846
Metropolian Council12,625,0000.26%32,825
Subtotal - overlapping debt15,376,834
City direct debt100.00%7,575,000
Total direct and overlapping debt$22,951,834
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 2016
Market value$733,616,300
Debt limit (3% of market value)22,008,489
Debt applicable to limit:
Debt Applicable to Limit5,560,000
Legal debt margin$16,448,489
Legal Debt Margin Calculation for Fiscal Years 2006 Through 2016
Net DebtLegalAmount of Debt
FiscalDebtApplicable toDebtApplicable to
YearLimitLimitMarginDebt Limit
2007$11,581,796$ - $11,581,7960.00%
200820,207,1186,300,00013,907,11831.18%
200921,562,6026,165,00015,397,60228.59%
201020,482,2637,110,00013,372,26334.71%
201120,098,1616,855,00013,243,16134.11%
2012 19,308,249 6,860,00012,448,24935.53%
2013 19,235,070 6,565,00012,670,07034.13%
2014 19,991,982 6,250,00013,741,98231.26%
2015 21,366,828 5,915,00015,451,82827.68%
2016 22,008,489 5,560,00016,448,48925.26%
Note: In 2008, State Statutes increased the percentage used to calculate the debt limit from 2% to 3%.
CITY OF OAK PARK HEIGHTS, MINNESOTA
PLEDGED REVENUE COVERAGE Table 12
Last Ten Fiscal Years
Improvement Bonds
PropertySpecialProperty Tax
FiscalTaxAssessmentTransfer FromDebt Service
(1)(2)(3)
Collections
YearCollectionsGeneral FundPrincipalInterestCoverage
2007$ - $35,180$ - $125,000$37,6880.216
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 - -548,000295,000253,6050.999
2014 - 217,836 559,000315,000291,4371.281
2015 - 379,964 608,000500,000426,1341.067
2016 - 219,841 620,0005,615,000422,6500.139
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
20074,7514.1%
20084,7085.4%
20094,6537.4%
20104,3396.3%
20114,3395.2%
Information Not Available
2012 4,4455.3%
2013 4,6544.6%
2014 4,7383.8%
2015 4,6483.1%
2016 4,7064.0%
Sources: Metropolitan Council (population), Continuing Disclosure Document or County Records (unemployment rate)
(1)
Information Not Available
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CITY OF OAK PARK HEIGHTS, MINNESOTA
PRINCIPAL EMPLOYERSTable 14
Current Year and Nine Years Ago
20162007
EmployerProduct ServiceEmployeesEmployees
Andersen CorporationWindow Manufacturer620650
VSSA - Boutwell's Landing/McKean SquareSenior Community Housing42495
State of Minnesota Correctional FacilityGovernment Correctional Institution361365
Wal-Mart Stores, Inc.Retail279310
ISD No. 834, StillwaterPublic education192175
Menard's Inc.Retail Lumber/Hardware132101
Lowe'sRetail115125
Xcel EnergyElectric Utility117 -
Stillwater MotorsAuto Dealership/Service Repair97125
Kowalski'sRetail/Grocery90125
Kohl'sRetail -113
Stillwater FordAuto Dealership/Service Repair -86
Total2,4272,270
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/Program200720082009
General government:
Administration222
Finance333
Building inspections222
Public safety101010
Public works443
Total212120
Source: City Finance Department
Table 15
Full-Time Equivalent Employees as of December 31,
2010201120122013201420152016
2223333
3333322
2211111
10101011111111
3444444
20212022222121
CITY OF OAK PARK HEIGHTS, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program200720082009
Police:
Physical arrests207224208
Parking violations92135170
Traffic violations6131,016969
Fire:
Fire and related calls1069891
Medical calls270292293
Building inspection:
Permits issued:
Residential194 -
Commercial822
Total permit valuation$6,521,063$18,707,532$7,254,000
Water:
Connections1,3041,3151,318
Average daily demand (thousands of gallons)681,452654,172681,816
Sewer:
Connections1,2741,2831,285
Sources: Various City departments.
(1)
Connection for Irrigation accounts removed from the total
Table 16
Fiscal Year
2010201120122013201420152016
176151151148169115122
1711559991868878
1,2408741,1261,0811,2831,2701,070
11083107170170172151
260306451546546596632
1 - 2 - 151
1321116
$10,955,024$1,828,000$8,776,295$4,781,710$4,781,710$7,000,000$13,613,536
(1)(1)(1)
1,3171,3211,2731,2741,2741,2811,281
576,085593,496667,835626,000608,216573,463565,658
1,2681,2781,2861,2801,2801,2871,287
CITY OF OAK PARK HEIGHTS, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program2007200820092010
Police:
Stations1111
Squad cars6666
Fire stations
Other public works:
Miles of paved streets22.022.022.022.0
Streetlights396396396396
Traffic signals2222
Parks and recreation:
Parkland acreage104108104104
Number of parks5555
Water:
Water mains (miles)26.826.827.127.1
Fire hydrants316316265265
Storage capacity (thousands of gallons)750750750750
Wastewater:
Sanitary sewers (miles)24.924.924.924.9
Storm sewers (miles)12.612.612.612.6
Sources: Various City departments.
Table 17
Fiscal Year
201120122013201420152016
111111
666666
22.022.022.022.022.022.0
396396396396396396
222222
104104104104104104
555555
27.127.127.127.127.127.1
265265265267270301
750750750750750750
24.924.924.924.924.924.9
12.612.612.612.612.612.6
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