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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 to the Statement of ActivitiesStatement 532
Statement of Net Position - Proprietary FundsStatement 633
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary FundsStatement 734
Statement of Cash Flows - Proprietary FundsStatement 835
Statement of Fiduciary Net Position - Agency FundsStatement 936
Notes to Financial Statements37
Required Supplementary Information:
Budgetary Comparison Schedule - General FundStatement 1066
Schedule of Proportionate Share of Net Pension Liability - General Employees
Retirement FundStatement 1170
Schedule of Pension Contributions - General Employees Retirement FundStatement 1271
Schedule of Proportionate Share of Net Pension Liability - Public Employees Police
and Fire FundStatement 1372
Schedule of Pension Contributions - Public Employees Police and Fire FundStatement 1473
Notes to RSI74
Combining and Individual Nonmajor Fund Financial Statements:
Combining Balance Sheet - Nonmajor Governmental FundsStatement 1580
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental FundsStatement 1681
CITY OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
ReferenceNo.
Subcombining Balance Sheet - Nonmajor Special Revenue FundsStatement 1782
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue FundsStatement 1883
Subcombining Balance Sheet - Nonmajor Debt Service FundsStatement 1984
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 14115
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
CITY OF OAK PARK HEIGHTS, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
December 31, 2017
Term Expires
Mayor:
Mary McComberDecember 31, 2020
Councilmembers:
Chuck DoughertyDecember 31, 2020
Mike LilijegrenDecember 31, 2018
Mike RunkDecember 31, 2020
Mark SwensonDecember 31, 2018
Administrator:
Eric JohnsonAppointed
Finance Director:
Betty CarusoAppointed
FINANCIAL SECTION
Government Auditing
Standards
Required Supplementary Information
Other Information
Government Auditing Standards
Government Auditing Standards
Government Auditing
Standards
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, 2017.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$44,987,516 (net position). Of this amount, $18,526,781 (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 $1,438,740.
As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $20,187,385, an increase of $954,685. The increase is the net result
of the favorable budget variances in the General Fund of $663,240, transfers in from the
Enterprise Funds of $683,593, and expenditures exceeding revenues by $392,148 for other
governmental funds.
At the end of the current fiscal year the General Fund balance was $4,842,448, of which
$71,178 is nonspendable, $171,000 is assigned, and $4,600,270 is unassigned. The
unassigned fund balance is 79% of the total subsequent year General Fund budgeted
expenditures.
The General Fund balance decreased by $167,884.The decrease is a result of favorable
budget variances for revenue and expenditures of $663,240 for 2017 and transfers out of
$831,124 of the December 31, 2016 unassigned fund balance in accordance with the City’s
fund balance policy.
The City’s transfers were $1,184,099 from the General Fund to the Budgeted Projects Fund
for capital improvements for streets, parks, public safety, public works, and general
government; $380,126 from the General Fund to the Street Reconstruction Fund; $87,624
from the General Fund to the Storm Sewer Renewal Replacement Fund; $100,000 from the
General Fund to the Renewal and Replacement Capital Project Fund; $267,100 from the
General Fund to the G.O. Capital Improvement Bond Funds of 2009 and 2014; $410,000
from the General Fund to the G.O. Capital Improvement Refunding Bonds of 2012A, 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)
Management’s Discussion and Analysis
government-wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains other supplementary information in addition
to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City’s finances, in a manner similar
to a private-sector business.
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
Management’s Discussion and Analysis
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
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
Economic Development
TIF District #2 – Special Revenue Fund
Budgeted Projects and Equipment Revolving – Capital Project Fund
G.O. Capital Improvement Bonds of 2014A – 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.
Management’s Discussion and Analysis
The basic proprietary fund financial statements are statements 6 through 8 of this report.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the City. Fiduciary funds are not reflected by the government-wide financial
statements because the resources of those funds are not available to support the City’s own
programs.
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 $44,987,516 at the
close of the most recent fiscal year.
The largest portion of the City’s net position ($24,544,577 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’ Changes in Net Position
Governmental ActivitiesBusiness-Type ActivitiesTotals
201720162017201620172016
Revenues:
Program revenues:
Charges for services$620,865$585,990$1,896,922$1,789,275$2,517,787$2,375,265
Operating grants and contributions139,695109,101 - 1,382139,695110,483
Capital grants and contributions87,98375,110 - - 87,98375,110
General revenues:
General property taxes5,288,6735,318,560 - - 5,288,6735,318,560
Tax increment215,197185,539 - - 215,197185,539
Grants and contributions not
restricted to specific programs10,32013,975 - 2,674,69210,3202,688,667
Other revenue49,68736,354 - 26549,68736,619
Unrestricted investment earnings236,128202,91124,08717,091260,215220,002
Total revenues6,648,5486,527,5401,921,0094,482,7058,569,55711,010,245
Expenses:
General government1,788,7671,708,148 - - 1,788,7671,708,148
Public safety1,909,2682,226,491 - - 1,909,2682,226,491
Public works1,417,2361,548,584 - - 1,417,2361,548,584
Parks and recreation319,576373,279 - - 319,576373,279
Interest on long-term debt174,158394,165 - - 174,158394,165
Water - - 611,185614,628611,185614,628
Sanitary sewer - - 855,051909,565855,051909,565
Storm sewer - - 55,57664,32155,57664,321
Total expenses 5,609,0056,250,6671,521,8121,588,5147,130,8177,839,181
Increase in net position before transfers1,039,543276,873399,1972,894,1911,438,7403,171,064
Transfers587,237(1,072,937)(587,237)1,072,937 - -
Change in net position1,626,780(796,064)(188,040)3,967,1281,438,7403,171,064
Net position - January 129,589,32730,385,39113,959,4499,992,32143,548,77640,377,712
Net position - December 31$31,216,107$29,589,327$13,771,409$13,959,449$44,987,516$43,548,776
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 net position decreased by $188,040 during 2017. Below are graphs
showing the business-type activities revenue and expense comparisons:
Management’s Discussion and Analysis
buildings and structures, other improvements, infrastructure, machinery and equipment and
furniture and fixtures.
City of Oak Park Heights’ Capital Assets
(Net of Depreciation)
BeginningEnding
BalanceIncreasesDecreasesBalance
Governmental activities:
Capital assets, not being depreciated:
Land$2,313,494$ - $ - $2,313,494
Construction in progress351,8161,035,371(1,336,082)51,105
Total capital assets, not being depreciated2,665,3101,035,371(1,336,082)2,364,599
Capital assets, being depreciated:
Buildings and structures7,678,725443,409 - 8,122,134
Other improvements1,603,514126,768 - 1,730,282
Machinery and equipment562,173202,440(70,417)694,196
Furniture and fixtures516,73524,083(12,575)528,243
Infrastructure17,588,517449,541 - 18,038,058
Total capital assets, being depreciated27,949,6641,246,241(82,992)29,112,913
Less accumulated depreciation for:
Buildings and structures1,186,797188,559 - 1,375,356
Other improvements445,97251,788 - 497,760
Machinery and equipment378,17444,268(68,092)354,350
Furniture and fixtures291,06934,481(12,575)312,975
Infrastructure7,421,702593,858 - 8,015,560
Total accumulated depreciation9,723,714912,954(80,667)10,556,001
Total capital assets being depreciated - net18,225,950333,287(2,325)18,556,912
Governmental activities capital assets - net$20,891,260$1,368,658($1,338,407)$20,921,511
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 structures2,067,33137,548(36,517)2,068,362
Machinery and equipment526,03838,674 - 564,712
Infrastructure13,079,09234,084 - 13,113,176
Total capital assets, being depreciated15,672,461110,306(36,517)15,746,250
Less accumulated depreciation for:
Buildings and structures1,029,12574,260(26,292)1,077,093
Machinery and equipment279,97127,354 - 307,325
Infrastructure3,290,536267,358 - 3,557,894
Total accumulated depreciation4,599,632368,972(26,292)4,942,312
Total capital assets being depreciated - net11,072,829(258,666)(10,225)10,803,938
Business-type activities capital assets - net$12,010,748($258,666)($10,225)$11,741,857
Additional information on the City’s capital assets can be found in Note 5.
Management’s Discussion and Analysis
Long-term debt. At the end of the current fiscal year, the City had total bonded debt
outstanding of $8,118,794, a decrease of $854,338 from 2016.
Additional long-term debt in the amount of $283,918 for compensated absences and
$1,888,137 for net pension liability was also outstanding at the end of 2017.
City of Oak Park Heights’ Outstanding Debt
General obligation bonds, compensated absences and unamortized bond premium:
Governmental ActivitiesBusiness-Type ActivitiesTotals
201720162017201620172016
General obligation bonds$7,935,000$8,770,000$ - $ - $7,935,000$8,770,000
Compensated absences233,992195,43249,92643,935283,918239,367
Net pension liability1,888,1374,610,089 - - 1,888,1374,610,089
Bond premium183,794203,132 - - 183,794203,132
Total$10,240,923$13,778,653$49,926$43,935$10,290,849$13,822,588
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 $22,773,432. The
City’s 2009A Capital Improvement Bonds and the 2012 General Obligation Bonds for a total
of $5,125,000 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
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF NET POSITIONStatement 1
December 31, 2017
With Comparative Amounts for The Year Ended December 31, 2016
Primary Government
GovernmentalBusiness-Type
Totals
Assets:ActivitiesActivities20172016
Cash and investments$20,192,740$1,606,922$21,799,662$21,113,594
Accrued interest receivable70,4527,07277,52462,106
Accounts receivable - net60,177458,401518,578482,224
Internal balances32,431(32,431) - -
Due from other governmental units107,905701108,606115,779
Prepaid items71,17862,107133,285119,332
Taxes receivable36,568 - 36,56834,015
Special assessments receivable - net515,275 - 515,275615,539
Land held for resale168,518 - 168,518126,000
Capital assets (net of accumulated depreciation):
Land2,313,494937,9193,251,4133,251,413
Building and structures6,746,778991,2697,738,0477,530,134
Other improvements1,232,522 - 1,232,5221,157,542
Machinery and equipment339,846257,387597,233430,066
Furniture and fixtures215,268 - 215,268225,666
Infrastructure10,022,4989,555,28219,577,78019,955,371
Construction in progress51,105 - 51,105351,816
Total assets42,176,75513,844,62956,021,38455,570,597
Deferred outflows of resources:
Related to pensions1,800,402 -1,800,4023,035,435
Liabilities:
Accounts payable262,21614,168276,384594,442
Salaries payable2,8322,0334,8654,986
Contracts payable37,057 -37,05712,561
Due to other governmental units3057,0937,39812,598
Accrued interest payable7,273 -7,2738,029
Deposits payable11,000 -11,00020,000
Unearned revenue3,564 -3,5643,394
Compensated absences payable:
Due within one year20,6594,40825,06724,993
Due in more than one year213,33345,518258,851214,374
Bonds payable:
Due within one year860,000 -860,000835,000
Due in more than one year7,258,794 -7,258,7948,138,132
Net pension liability:
Due in more than one year1,888,137 -1,888,1374,610,089
Total liabilities10,565,17073,22010,638,39014,478,598
Deferred inflows of resources:
Related to pensions2,195,880 -2,195,880578,658
Net position:
Net investment in capital assets12,802,72011,741,85724,544,57723,928,880
Restricted for:
Debt service1,659,682 -1,659,6821,871,925
Park improvements47,468 -47,468351,899
Other purposes209,008 -209,008129,426
Unrestricted16,497,2292,029,55218,526,78117,266,646
Total net position$31,216,107$13,771,409$44,987,516$43,548,776
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, 2017
With Comparative Amounts for The Year Ended December 31, 2016
Program Revenues
Charges For
Functions/ProgramsExpensesServices
Primary government:
Governmental activities:
General government$1,788,767$239,841
Public safety1,909,268190,339
Public works1,417,236147,405
Parks and recreation319,57643,280
Interest and fees on long-term debt174,158 -
Total governmental activities5,609,005620,865
Business-type activities:
Water611,185805,201
Sanitary sewer855,0511,007,834
Storm sewer55,57683,887
Total business-type activities1,521,8121,896,922
Total primary government$7,130,817$2,517,787
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
ContributionsContributionsActivitiesActivities20172016
$ - $ - ($1,548,926)$ - ($1,548,926)($1,631,139)
92,365 - (1,626,564) - (1,626,564)(1,740,905)
47,33087,983(1,134,518) - (1,134,518)(1,357,761)
- - (276,296) - (276,296)(356,496)
- - (174,158) - (174,158)(394,165)
139,69587,983(4,760,462)0(4,760,462)(5,480,466)
- - - 194,016194,016168,646
- - - 152,783152,78314,540
- - - 28,31128,31118,957
000375,110375,110202,143
$139,695$87,983(4,760,462)375,110(4,385,352)(5,278,323)
General revenues:
General property taxes5,288,673 - 5,288,6735,318,560
Tax increment215,197 - 215,197185,539
Grants and contributions not
restricted to specific programs10,320 - 10,3202,688,667
Unrestricted investment earnings236,12824,087260,215220,002
Other revenue49,687 - 49,68736,619
Transfers587,237(587,237) - -
Total general revenues
and transfers6,387,242(563,150)5,824,0928,449,387
Change in net position1,626,780(188,040)1,438,7403,171,064
Net position - January 129,589,32713,959,44943,548,77640,377,712
Net position - December 31$31,216,107$13,771,409$44,987,516$43,548,776
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2017
With Comparative Totals For December 31, 2016
401 Budgeted
Projects and
204 Economic 206 TIF District Equipment
General FundDevelopment#2Revolving
Assets
Cash and investments$4,322,673$33,871$2,393$3,757,200
Accrued interest receivable15,4311281311,874
Accounts receivable - net59,372 - - -
Due from other governmental units84,312 - - -
Due from other funds410,000 - - -
Prepaid items71,178 - - -
Delinquent taxes receivable36,568 - - -
Special assessments receivable - - - -
Land held for resale - 168,518 - -
Total assets$4,999,534$202,517$2,406$3,769,074
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable$106,381$ - $ - $34,813
Salaries payable2,832 - - -
Contracts payable - - - -
Due to other governmental units305 - - -
Due to other funds - - 410,000 -
Deposits payable11,000 - - -
Unearned revenue - - - -
Total liabilities120,5180410,00034,813
Deferred inflows of resources:
Unavailable revenue36,568168,518 - -
Fund balance:
Nonspendable71,178 - - -
Restricted - - - 32,974
Assigned171,00033,999 - 3,701,287
Unassigned4,600,270 - (407,594) -
Total fund balance4,842,44833,999(407,594)3,734,261
Total liabilities, deferred inflows of resources, and fund balance$4,999,534$202,517$2,406$3,769,074
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 Governmental
Bonds of 2014AReconstructionFundFundsIntra-Activity EliminationsTotal Governmental Funds
20172016
$953,604$2,225,982$3,897,080$4,999,937$ - $20,192,740$19,448,041
4,2817,52313,12718,075 - 70,45262,106
- - - 805 - 60,17755,576
1,98621,607 - - - 107,905115,100
- - - - (410,000) - -
- - - - - 71,17863,813
- - - - - 36,56834,015
566,90822,452 - - - 589,360689,624
- - - - - 168,518126,000
$1,526,779$2,277,564$3,910,207$5,018,817($410,000)$21,296,898$20,594,275
$ - $11,071$14,696$95,255$ - $262,216$476,869
- - - - - 2,8323,551
- 8,496 - 28,561 - 37,0576,122
- - - - - 3055,904
- - - - (410,000) - -
- - - - - 11,00020,000
- - - 3,564 - 3,5643,394
019,56714,696127,380(410,000)316,974515,840
565,00122,452 - - - 792,539845,735
- - - - - 71,17863,813
961,778 - - 356,405 - 1,351,1571,667,530
- 2,235,5453,895,5114,535,032 - 14,572,37413,100,802
- - - - - 4,192,6764,400,555
961,7782,235,5453,895,5114,891,437020,187,38519,232,700
$1,526,779$2,277,564$3,910,207$5,018,817($410,000)$21,296,898$20,594,275
Recociliation of fund balance to Net Position:
Fund balance reported above$20,187,385$19,232,700
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.20,921,51120,891,260
Other long-term assets are not available to pay for current-period expenditures and, therefore, are
reported as unavailable revenues in the funds.718,454771,650
Long-term liabilities, are not due and payable in the current period and, therefore, are not reported in the funds:
Bonds payable(8,118,794)(8,973,132)
Compensated absences payable(233,992)(195,432)
Accrued interest payable(7,273)(8,029)
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.(2,251,184)(2,129,690)
Net position of governmental activities$31,216,107$29,589,327
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, 2017
With Comparative Totals For December 31, 2016
401 Budgeted
Projects and
204 Economic 206 TIF District Equipment
General FundDevelopment#2Revolving
Revenues:
General property taxes$5,286,120$ - $ - $ -
Tax increment - - - -
Special assessments - - - -
Licenses and permits172,736 - - -
Intergovernmental138,645 - - -
Charges for services97,068 - - 1,350
Fines and forfeits50,023 - - -
Investment income50,0924315040,405
Refunds and reimbursements113,056 - - -
Donations and contributions1,050 - - -
Total revenues5,908,7904315041,755
Expenditures:
Current:
General government1,285,258 - 1,680113,883
Public safety1,646,300 - - 96,853
Public works481,542 - - 331,588
Parks and recreation142,813 - - 24,000
Capital outlay - - - 262,780
Debt service:
Principal - - - -
Interest - - - -
Total expenditures3,555,91301,680 829,104
Revenues over (under) expenditures2,352,877431 (1,630)(787,349)
Other financing sources (uses):
Sale of capital assets8,188 - - -
Transfers in - - - 1,343,574
Transfers out(2,528,949) - - (150,000)
Total other financing sources (uses)(2,520,761)00 1,193,574
Net change in fund balance(167,884)431 (1,630)406,225
Fund balance - January 15,010,33233,568(405,964)3,328,036
Fund balance - December 31$4,842,448$33,999($407,594)$3,734,261
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
20172016
$ - $ - $ - $ - $ - $5,286,120$5,347,035
- - - 215,197 - 215,197185,539
142,146 - - - - 142,146220,052
- - - - - 172,736214,182
- 21,607 - - - 160,252491,141
- - - 185,741 - 284,159136,653
- - - 8,060 - 58,08351,739
14,99124,67943,85661,624 - 236,128202,911
- - - - - 113,056235,466
- 24,898 - - - 25,94816,783
157,137 71,184 43,856 470,622 0 6,693,825 7,101,501
- - - 176,181 - 1,577,0021,383,243
- - - 5,488 - 1,748,6411,734,623
- 27,29819,0891,942 - 861,459582,368
- - - 6,963 - 173,776244,052
- 57,08478,965641,962 - 1,040,791661,984
400,000 - - 435,000 - 835,0005,615,000
74,391 - - 119,861 - 194,252422,650
474,391 84,382 98,054 1,387,397 0 6,430,921 10,643,920
(317,254)(13,198)(54,198)(916,775)0 262,904 (3,542,419)
- - - - - 8,1883,690
226,100380,126513,2561,084,486(2,863,949)683,593651,534
- - - (185,000)2,863,949 - -
226,100 380,126 513,256 899,486 0 691,781 655,224
(91,154)366,928 459,058 (17,289)0 954,685 (2,887,195)
1,052,9321,868,6173,436,4534,908,726 - 19,232,70022,119,895
$961,778$2,235,545$3,895,511$4,891,437$0$20,187,385$19,232,700
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 TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2017
With Comparative Amounts for The Year Ended December 31, 2016
20172016
Amounts reported for governmental activities in the
statement of activities are different because:
Net changes in fund balances - total governmental funds (Statement 4)$954,685($2,887,195)
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(912,954)(857,889)
Capital outlay1,040,791661,984
Capitalized interest - 21,199
Other various transactions relating to capital assets:
Transfer of capital assets to business-type activities(96,356)(1,724,471)
Disposal of assets(2,325)(581,104)
Expenditures for capital assets not included in capital outlay1,096 -
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 receivable2,553(28,475)
Change in deferred special assessments receivable(98,267)(128,382)
Change in value of land held for resale42,518 -
Change in unavailable grant receivable - (429,039)
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 payable835,0005,615,000
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 payable(38,560)27,612
Change in accrued interest payable7569,147
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.(121,495)(513,789)
Change in net position of governmental activities (Statement 2)$1,626,780($796,064)
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, 2017
With Comparative Totals For Enterprise Funds For December 31, 2016
Governmental
Activities
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility Internal Service
Utility FundUtility FundFundFund
Totals
201720162017
Assets:
Current assets:
Cash and cash equivalents$782,747$640,921$183,254$1,606,922$1,665,553$ -
Accrued interest receivable3,5562,8167007,072 - -
Accounts receivable:
Customers166,359233,82720,742420,928380,686 -
Certified to County13,21319,1585,10237,47345,962 -
Due from other governmental units701 - - 701679 -
Prepaid items8,34453,7511262,10755,519 -
Total current assets974,920 950,473 209,810 2,135,203 2,148,399 0
Noncurrent assets:
Capital assets:
Land937,919 - - 937,919937,919 -
Buildings and structures2,024,37843,983 - 2,068,3612,067,330 -
Machinery and equipment549,37015,342 - 564,712526,038 -
Distribution and collection system7,388,0895,725,088 - 13,113,17713,079,093 -
Total capital assets10,899,756 5,784,413 0 16,684,169 16,610,380 0
Less: Allowance for depreciation(3,052,025)(1,890,287) - (4,942,312)(4,599,632) -
Net capital assets7,847,7313,894,126011,741,85712,010,7480
Total noncurrent assets7,847,7313,894,126 - 11,741,85712,010,748 -
Total assets8,822,6514,844,599209,81013,877,06014,159,1470
Deferred outflows of resources:
Related to pensions - - - - - 1,800,402
Liabilities:
Current liabilities:
Accounts payable8,7534,75366214,168124,012 -
Salaries payable9391,070242,0331,435 -
Due to other governmental units4,6332,460 - 7,0936,694 -
Compensated absences payable - current portion2,5051,5803234,4084,587 -
Total current liabilities16,830 9,863 1,009 27,702 136,728 0
Noncurrent liabilities:
Compensated absences payable - noncurrent portion25,86616,3123,34045,51839,348 -
Net pension liability - - - - - 1,888,137
Noncurrent liabilities25,86616,3123,34045,51839,3481,888,137
Total liabilities42,69626,1754,34973,220176,0761,888,137
Deferred inflows of resources:
Related to pensions - - - - - 2,195,880
Net position:
Net investment in capital assets7,847,7313,894,126 - 11,741,85712,010,748 -
Unrestricted932,224924,298205,4612,061,9831,972,323(2,283,615)
Total net position$8,779,955$4,818,424$205,461$13,803,840$13,983,071($2,283,615)
Net position reported above$13,803,840$13,983,071
Adjustment to report the cumulative internal balance for the net effect of
activity between the internal service fund and the enterprise funds over time.(32,431)(23,622)
Net position of business-type activities$13,771,409$13,959,449
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, 2017
With Comparative Totals For Enterprise Funds For December 31, 2016
Governmental
Activities
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility Internal Service
Utility FundUtility FundFundFund
Totals
201720162017
Operating revenues:
Customer billings$784,520$972,017$82,732$1,839,269$1,741,492$ -
Penalties7,75411,9901,08520,82920,146 -
Meter charges10,022 - - 10,02215,526 -
Charges for services1,88970702,0295,569205,478
Grants and contributions - - - - 1,3827,919
Refunds and reimbursements1,01623,757 - 24,7736,542 -
Total operating revenues805,201 1,007,834 83,887 1,896,922 1,790,657 213,397
Operating expenses:
Personal services214,297145,96026,409386,666350,141343,700
Contractual services105,01974,40521,457200,881261,526 -
MCES charges - 498,929 - 498,929458,379 -
Materials and supplies26,41313,8541,75442,02122,195 -
Administrative and personnel charges - - 5,3505,3504,400 -
Repairs and maintenance - - - - 900 -
Depreciation250,270118,661 - 368,931352,045 -
Total operating expenses595,999 851,809 54,970 1,502,778 1,449,586 343,700
Operating income (loss)209,202 156,025 28,917 394,144 341,071 (130,303)
Nonoperating revenues (expenses):
Earnings on investments12,1369,6522,29924,08717,091 -
Other - - - - 265 -
(Loss) on disposal of capital assets(10,225) - - (10,225)(117,332) -
Total nonoperating revenues (expenses)1,9119,6522,29913,862(99,976)0
Income (loss) before contributions and transfers211,113165,67731,216408,006241,095(130,303)
Capital contributions62,27234,084 - 96,3564,399,163 -
Transfers:
Transfers to other funds(448,715)(221,028)(13,850)(683,593)(651,534) -
Total transfers and contributions(386,443)(186,944)(13,850)(587,237)3,747,6290
Change in net position(175,330)(21,267)17,366(179,231)3,988,724(130,303)
Net position - January 18,955,2854,839,691188,09513,983,0719,994,347(2,153,312)
Net position - December 31$8,779,955$4,818,424$205,461$13,803,840$13,983,071($2,283,615)
Change in
NetCapital
PositionContributionsTransfers
Reconciliation to Statement of Activities:
Amounts reported above($179,231)$96,356($683,593)
Amounts reported for business-type activities in the Statement of Activities are different because:
Transfer in of capital assets from governmental activities - (96,356)96,356
Adjustment to reflect the consolidation of Internal Service Fund activities(8,809) - -
Amounts reported on the Statement of Activities($188,040)$0($587,237)
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, 2017
With Comparative Totals For December 31, 2016
20172016
Assets:
Cash and investments$432,427$391,096
Due from developers9,03617,715
Total assets441,463408,811
Liabilities:
Escrow deposits payable165,997165,997
Accounts payable1,8826,566
Due to developers273,584236,248
Total liabilities441,463408,811
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, 2017
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, 2017
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.
TheEconomic Development Fund is used to account for the activity of the Oak Park Heights
Economic Development Authority.
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 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, 2017
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, which 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.
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
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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.
F.CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in
authorized investments. Earnings from investments are allocated to individual funds on the basis of the
fund's equity in the cash and investment pool.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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
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
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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.
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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, 2017, 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
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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.
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, 2016, from which the summarized information was derived.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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. PENSION PLANS
COST SHARING MULTIPLE – EMPLOYER 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
determined on the same basis as they are reported by PERA except 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;
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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, 2017 the carrying amount of the City’s deposits with financial institutions was
$5,505,773.
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, 2017, the bank balance of the City’s deposits was
$5,711,352, all of which was either insured by the Federal Deposit Insurance Corporation (FDIC) or
covered by perfected pledged collateral held in the City’s name.
B. INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its
instrumentalities or organizations created by an act of Congress, excluding mortgage-backed
securities defined as high risk.
b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and
whose only investments are in securities described in (a) above, general obligation tax-exempt
securities, or repurchase or reverse repurchase agreements.
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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, 2017 the City had the following investments and maturities:
Investment Maturities (in Years)
FairLess
Investment TypeRatingValueThan 11-56-10
Federal National Mortgage Assn. NotesAaa$1,130,477$ - $736,165$394,312
Federal Home Loan Mortgage Corp.Aaa1,990,135 - 1,990,135 -
Federal Home Loan Bank NotesAaa1,766,098 - 1,766,098 -
Brokered certificates of depositNR10,681,9705,481,6804,966,986233,304
External investment pool - 4M FundNR1,157,5361,157,536 - -
Total$16,726,216$6,639,216$9,459,384$627,616
NR - Not RatedTotal investments$16,726,216
Deposits5,505,773
Petty cash100
Total cash and investments$22,232,089
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, 2017:
Fair Value Measurement Using
Investment Type12/31/2017Level 1Level 2Level 3
Investments at fair value:
Federal National Mortgage Assn. Notes$1,130,477$ - $1,130,477$ -
Federal Home Loan Mortgage Corp.1,990,135 - 1,990,135 -
Federal Home Loan Bank Notes1,766,098 - 1,766,098 -
Brokered certificates of deposit10,681,970 - 10,681,970 -
Total/Subtotal15,568,680$0$15,568,680$0
Investments not categorized:
External investment pool - 4M Fund1,157,536
Total$16,726,216
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
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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, 2017:
Cash and investments:
Governmental and business-type (Statement 1)$21,799,662
Fiduciary (Statement 9)432,427
Total cash and investments$22,232,089
C. INVESTMENT RISKS
Custodial credit risk – investments – For investments in securities, custodial credit risk is the risk that in
the event of failure of the counterparty to a transaction, the City will not be able to recover the value of
its investment securities that are in the possession of an outside party. Investments in investment pools
and money markets are not evidenced by securities that exist in physical or book entry form, and
therefore are not subject to custodial credit risk disclosures. The City’s investment policy does not
address custodial risk. However, investments in securities are held by the City’s broker-dealer of which
$2,000,000 is insured through SIPC. Each broker-dealer has provided additional protection by
providing additional insurance. This insurance is subject to aggregate limits applied to all of the
broker-dealer’s accounts.
Interest rate risk – Interest rate risk is the risk that changes in interest rates of debt investments could
adversely affect the fair value of an investment. The City’s investment policy requires the City to
diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of assets
in a specific maturity. The policy also states the City’s investment portfolio will remain sufficiently
liquid to enable the City to meet all operating requirements which might be reasonably anticipated.
Credit risk – Credit risk is the risk that an issuer or other counterparty to an investment will be unable to
fulfill its obligation to the holder of the investment. Minnesota Statutes limit the City’s investments to
direct obligations or obligations under the Federal Investment Company Act of 1940 that receive the
highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency,
and all of the investments have a final maturity of thirteen months or less; shares of a Minnesota joint
powers investment trust whose investments are restricted to securities described in 118.04; general
obligations of any state or local government with taxing powers which is rated “A” or better; revenue
obligations of any state or local government with taxing powers which is rated “AA” or better; general
obligations of the Minnesota Housing Finance Agency rated “A” or better; bankers’ acceptances of
United States banks eligible for purchase by the Federal Reserve System; commercial paper issued by
United States corporations or their Canadian subsidiaries, rated of the highest quality category by at
least two nationally recognized rating agencies, and maturing in 270 days or less; guaranteed
investment contracts guaranteed by a United States commercial bank, domestic branch of a foreign
bank or a United States insurance company, and with the credit quality in one of the top two highest
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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, 2017, more than 5% of the City’s cash and
investments are in the following governmental agencies: Federal National Mortgage Association (5%),
Federal Home Loan Mortgage Corp (9%) and Federal Home Loan Bank (8%).
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2017 are as
follows:
GO Capital
Improvement BondsStreet
Generalof 2014AReconstruction
Delinquent property taxes$16,814$ - $ -
Deferred special assessments8,773489,6881,242
Total$25,587$489,688$1,242
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
TaxesAssessmentsfor ResaleTotal
Major funds:
General Fund$36,568$ - $ - $36,568
Economic Development - - 168,518168,518
Capital Improvement Bonds of 2014A - 565,001 - 565,001
Street Reconstruction - 22,452 - 22,452
Total unavailable revenue$36,568$587,453$168,518$792,539
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2017 was as follows:
BeginningEnding
BalanceIncreasesDecreasesBalance
Governmental activities:
Capital assets, not being depreciated:
Land$2,313,494$ - $ - $2,313,494
Construction in progress351,8161,035,371(1,336,082)51,105
Total capital assets, not being depreciated2,665,3101,035,371(1,336,082)2,364,599
Capital assets, being depreciated:
Buildings and structures7,678,725443,409 - 8,122,134
Other improvements1,603,514126,768 - 1,730,282
Machinery and equipment562,173202,440(70,417)694,196
Furniture and fixtures516,73524,083(12,575)528,243
Infrastructure17,588,517449,541 - 18,038,058
Total capital assets, being depreciated27,949,6641,246,241(82,992)29,112,913
Less accumulated depreciation for:
Buildings and structures1,186,797188,559 - 1,375,356
Other improvements445,97251,788 - 497,760
Machinery and equipment378,17444,268(68,092)354,350
Furniture and fixtures291,06934,481(12,575)312,975
Infrastructure7,421,702593,858 - 8,015,560
Total accumulated depreciation9,723,714912,954(80,667)10,556,001
Total capital assets being depreciated - net18,225,950333,287(2,325)18,556,912
Governmental activities capital assets - net$20,891,260$1,368,658($1,338,407)$20,921,511
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 structures2,067,33137,548(36,517)2,068,362
Machinery and equipment526,03838,674 - 564,712
Infrastructure13,079,09234,084 - 13,113,176
Total capital assets, being depreciated15,672,461110,306(36,517)15,746,250
Less accumulated depreciation for:
Buildings and structures1,029,12574,260(26,292)1,077,093
Machinery and equipment279,97127,354 - 307,325
Infrastructure3,290,536267,358 - 3,557,894
Total accumulated depreciation4,599,632368,972(26,292)4,942,312
Total capital assets being depreciated - net11,072,829(258,666)(10,225)10,803,938
Business-type activities capital assets - net$12,010,748($258,666)($10,225)$11,741,857
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government$192,201
Public safety21,797
Public works554,897
Recreation144,059
Total depreciation expense - governmental activities$912,954
Business-type activities:
Water$250,270
Sewer118,702
Total depreciation expense - business-type activities$368,972
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, 2017, the long-term debt of the financial reporting entity consisted of the following:
FinalAuthorized
Issue Maturity Interest AndOutstanding
DateDateRateIssued12/31/17
Governmental activities:
Improvement bonds:
G.O. Capital Improvement Bonds, Series 2009A09/15/0912/15/191.2 - 3.551,195,000$290,000
G.O. CIP Refunding Bonds, Series 2012A12/01/1212/15/282.0 - 2.155,140,0004,835,000
G.O. Capital Improvement Bonds, Series 2014A06/05/1412/15/252.0 - 3.03,775,0002,810,000
Bond premium183,794
Compensated absences payable233,992
Total governmental activities8,352,786
Business-type activities:
Compensated absences payable49,926
Total City indebtedness$8,402,712
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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
2018$140,000$10,084$320,000$98,658$400,000$65,800$860,000$174,542
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$290,000$15,409$4,835,000$658,895$2,810,000$309,650$7,935,000$983,954
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, 2017, was as follows:
BalanceBalanceDue Within
01/01/17AdditionsReductions12/31/17One Year
Governmental Activities:
Bonded debt:
Improvement bonds$3,630,000$ - ($530,000)$3,100,000$540,000
CIP refunding bonds5,140,000 - (305,000)4,835,000320,000
Bond premium203,132 - (19,338)183,794 -
Compensated absences195,43290,003(51,443)233,99220,659
Total governmental activities$14,830,514$90,003($905,781)$8,352,786$880,659
Business-Type Activities:
Compensated absences$43,935$16,429($10,438)$49,926$4,408
Total business-type activities$48,557$16,429($10,438)$49,926$4,408
For governmental activities, compensated absences are generally liquidated by the General Fund. All long-
term bonded indebtedness outstanding at December 31, 2017 is backed by the full faith and credit of the
City, including improvement bond issues. Delinquent taxes receivable at December 31, 2017 were $36,568.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Revenues Pledged
Revenue PledgedCurrent Year
Percent ofRemainingPrincipalPledged
Use ofTotalTerm ofPrincipaland InterestRevenue
Bond IssueProceedsTypeDebt ServicePledgeand InterestPaidReceived
2009ACity hall constructionProperty taxes100%2010 - 2019$305,409$144,609$143,000
Refunding of 2008A
capital improvement
Property taxes
2012Abonds100%2017 - 2028$5,493,895$410,252$410,000
Special assessments62%
Water fund
contribution27%
Property taxes
2014AStreet reconstruction11%2015 - 2025$3,119,650$474,391$368,246
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.
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
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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 2017. The City was required to
contribute 11.78% of pay for Basic Plan members and 7.50% for Coordinated Plan members in
calendar year 2017. The City’s contributions to the GERF for the year ended December 31, 2017,
were $58,553. 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, 2017
2.PEPFF Contributions
Plan members were required to contribute 10.8% of their annual covered salary in calendar year
2017. The City was required to contribute 16.20% of pay for PEPFF members in calendar year
2017. The City’s contributions to the PEPFF for the year ended December 31, 2017, were
$146,925. 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, 2017, the City reported a liability of $740,536 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 2017. 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 $9,331. The net pension liability was measured as of June 30,
2017, 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, 2016, through June 30, 2017, relative to the total employer contributions
received from all of PERA’s participating employers. At June 30, 2017, the City’s proportion was
.0116% which was a decrease of .0002% from its proportion measured as of June 30, 2016.
For the year ended December 31, 2017, the City recognized pension expense of $81,254 for its
proportionate share of the GERF’s pension expense. In addition, the City recognized an additional
$269 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, 2017, 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$24,406$47,553
Changes in actuarial assumptions122,94574,239
Difference between projected and
actual investment earnings4,620 -
Changes in proportion - 39,337
Contributions paid to PERA
subsequent to the measurement date29,616 -
Total$181,587$161,129
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
$29,616 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, 2018. 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
2018$2,861
201936,358
2020(16,942)
2021(31,435)
Thereafter -
2. PEPFF Pension Costs
At December 31, 2017, the City reported a liability of $1,147,601 for its proportionate share of the
PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2017, 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, 2016, through June 30, 2017, relative to the total employer contributions received
from all of PERA’s participating employers. At June 30, 2017, the City’s proportion was .0850%
which was a decrease of .0060% from its proportion measured as of June 30, 2016. The City also
recognized $7,650 for the year ended December 31, 2017, 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, 2017, the City recognized pension expense of $262,177 for its
proportionate share of the PEPFF’s pension expense. .
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
At December 31, 2017, 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$26,415$305,139
Changes in actuarial assumptions1,501,8651,629,309
Difference between projected and
actual investment earnings13,783 -
Changes in proportion - 100,303
Contributions paid to PERA
subsequent to the measurement date76,752 -
Total$1,618,815$2,034,751
$76,752 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, 2018. 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
2018($2,300)
2019(2,300)
2020(43,374)
2021(107,599)
2022(337,115)
Thereafter -
E.ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2017, 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 both plans for males or females, as
appropriate, with slight adjustments to fit PERA’s experience. Cost of living benefit increases for
retirees are assumed to be 1% per year for the GERF through 2044 and PEPFF through 2064 and then
2.5% thereafter.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Actuarial assumptions used in the June 30, 2017, 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 most recent five-year experience study for the Police and Fire Plan was completed in 2016.
The following changes in actuarial assumptions occurred in 2017:
General Employees Fund
The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active
members and 60 percent for vested and non-vested deferred members. The revised CSA loads
are now 0.0 percent for active member liability, 15.0 percent for vested deferred member
liability and 3.0 percent for non-vested deferred member liability.
The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for
all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter.
Police and Fire Fund
The single discount rate was changed from 5.6% to 7.5%.
Assumed salary increases were changed as recommended in the June 30, 2016 experience
study. The net effect is proposed rates that average 0.34 percent lower than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred
members. The CSO has been changed to 33 percent for vested members and 2 percent for
non-vested members.
The base mortality table for healthy annuitants was changed from the RP-2000 fully
generational table to the RP-2014 fully generational table (with a base year for 2006), with
male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from
Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed
from the RP-2000 disabled mortality table to the mortality tables assumed from healthy
retirees.
Assumed termination rates were decreased to 3.0 percent for the first three years of service.
Rates beyond the selection period of three years were adjusted, resulting in more expected
terminations overall.
Assumed percentage of married female members decreased from 65 percent to 60 percent.
Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four years
older) to the assumption that males are two years older than females.
The assumed percentage of female members electing Joint and Survivor annuities was
increased.
The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years
to 1.00 percent per year through 2064 and 2.50 percent thereafter.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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 Stocks39%5.10%
International Stocks19%5.30%
Bonds20%0.75%
Alternative Assets20%5.90%
Cash2%0.00%
Total100%
F.DISCOUNT RATE
The discount rate used to measure the total pension liability in 2017 was 7.5%. The projection of cash
flows used to determine the discount rate assumed that 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 GERF and PEPFF was projected to be available to make all projected future benefit payments of
current plan members. Therefore, the long-term expected rate of return on pension plan investments
was applied to all periods of projected benefit payments to determine the total pension liability.
At June 30, 2016, the Police and Fire Fund projected benefit payments to exceed the funds projected
fiduciary net position after June 30, 2056 and therefore used a single discount rate of 5.6%, which as
stated above, increased to 7.5% at June 30, 2017.
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$1,148,627$740,536$406,440
City's proportionate share of the
PEPFF net pension liability$2,161,268$1,147,601$310,763
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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.
I.PENSION EXPENSE
Pension expense recognized by the City for the fiscal year ended December 31, 2017 is as follows:
GERF$81,523
PEPFF262,177
Total$343,700
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 2017 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, 2017
Note 9 INTERFUND TRANSFERS
Major Funds
Capital Street Renewal and Nonmajor
Budgeted Projects Improvement ReconstructionReplacement Governmental
and EqupimentBonds of 2014AFundFund FundsTotal
Transfers out:
Governmental activities:
General Fund$1,184,099$124,100$380,126$100,000$740,624$2,528,949
Budgeted Projects and Equipment150,000150,000
Nonmajor Governmental Funds - - - 45,000140,000185,000
Business-type activities:
Water Utility Fund95,900102,000 - 198,89151,924448,715
Sewer Utility Fund49,725 - - 169,3651,938221,028
Storm Sewer Utility Fund13,850 - - - - 13,850
Total transfers$1,343,574$226,100$380,126$513,256$1,084,486$3,547,542
During 2017, 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, 2017.
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 each the years ended December 31, 2017 and
2016 was $92,821. The remaining commitment is $1,206,679 and is to be paid in annual installments
of $92,821 for the next 13 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.
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
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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, 2017, a
summary of the governmental fund balance classifications are as follows:
Budgeted
Projects andG.O. CapitalRenewal andOther
EconomicTIFEquipmentImprovementStreetReplacementGovernmental
General FundDevelopmentDistrict #2RevolvingBonds of 2014ReconstructionFundFundsTotal
Nonspendable:
Prepaid items$71,178$ - $ - $ - $ - $ - $ - $ - $71,178
Restricted for:
Law enforcement - - - - - - - 10,03710,037
Tax increment - - - - - - - 165,997165,997
Debt service - - - - 961,778 - - 132,9031,094,681
Small cities grant - - - 32,974 - - - - 32,974
Moelter Park improvements - - - - - - - 47,46847,468
Total restricted00032,974961,77800356,4051,351,157
Assigned for:
Compensated absences171,000 - - - - - - - 171,000
Capital purposes - - - 3,701,287 - - 3,895,5114,535,03212,131,830
Street reconstruction - - - - - 2,235,545 - - 2,235,545
Economic development - 33,999 - - - - - - 33,999
Total assigned171,00033,99903,701,28702,235,5453,895,5114,535,03214,572,374
Unassigned4,600,270 - (407,594) - - - - - 4,192,676
Total$4,842,448$33,999($407,594)$3,734,261$961,778$2,235,545$3,895,511$4,891,437$20,187,385
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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, 2017, the unassigned fund balance of the General Fund was $4,600,270 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 40.79% of the City's total tax capacity value for taxes payable in 2017.
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 agreement. The agreement is not a general obligation of the City
and is payable solely from available tax increment. Accordingly, this agreement are not reflected in the financial
statements of the City. Details of the pay-as-you-go note is 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
remain after the final payment on February 1, 2026. The abatements (TIF note payments) for the years
ended December 31, 2017 and 2016 were $172,158 and $148,432. At December 31, 2017 and 2016, the
principal amount outstanding on the note was $1,185,877 and $1,200,000.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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, 2017, there were six series of Industrial Revenue Bonds outstanding. The principal amount
payable at December 31, 2017 was $94,495,877.
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:
2017
LeaseAnnual LeaseExpirationRenewal
LocationLesseeAmountAdjustment Factor*DateOptions
58th and NorrellSprint PCS$40,730Greater 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. 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.
Statement No. 86 Certain Debt Estinguishment Issues. The provisions of this Statement are effective for
reporting periods beginning after June 15, 2017.
Statement No. 87 Leases.The provisions of this Statement are effective for periods beginning after
December 15, 2019.
The effect these standards may have on future financial statements is not determinable at this time.
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, 2017
With Comparative Actual Amounts For The Year Ended December 31, 2016
Variance
with Final
Budget -
2017 Actual Positive2016 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Revenues:
Property taxes$5,193,661$5,193,661$5,217,245$23,584$5,295,590
Abatement of property taxes - - (3,279)(3,279)(23,549)
Payment in lieu of taxes73,00073,00072,154(846)74,994
Total property taxes5,266,6615,266,6615,286,12019,4595,347,035
Intergovernmental:
PERA aid2,0402,0402,040 - 2,040
Police aid75,00075,00080,8545,85485,502
Recycling grant10,00010,00014,3564,35614,242
Safe and Sober grant7,0007,0008,1021,1026,311
Small Cities grant - - 32,97432,974 -
Other local governments - - 319319 -
Other public works grants - - - - 3,046
Total intergovernmental94,04094,040138,64544,605111,141
Licenses and permits96,19596,195172,73676,541214,182
Charges for services:
General government14,40014,40041,69827,29842,444
Administrative - Enterprise Fund5,3505,3505,350 - 4,400
Development charge40,00040,00050,02010,02041,938
Total charges for services59,75059,75097,06837,31888,782
Fines and forfeits40,00040,00050,02310,02340,876
Investment income - - 50,09250,09232,754
Refunds and reimbursements83,00083,000113,05630,056148,966
Donations and contributions - - 1,0501,050 -
Total revenues5,639,6465,639,6465,908,790269,1445,983,736
Expenditures:
General government:
Mayor and city council:
Current:
Personal services60,32060,32059,1801,14059,356
Materials and supplies500500239261295
Other services and charges54,18454,18432,21021,97426,515
Total mayor and city council115,004115,00491,62923,37586,166
City administration:
Current:
Personal services229,770229,770227,9581,812221,686
Materials and supplies2,8502,8501,8421,0082,442
Other services and charges47,90047,90046,3021,59844,449
Total City administration280,520280,520276,1024,418268,577
Legal:
Current:
Personal services36,00036,00022,89813,10219,276
General management and building:
Current:
Materials and supplies12,00012,0005,4216,5796,416
Other services and charges162,600162,600143,93618,664159,897
Total general management and building174,600174,600149,35725,243166,313
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATIONStatement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUNDPage 2 of 4
For The Year Ended December 31, 2017
With Comparative Actual Amounts For The Year Ended December 31, 2016
Variance
with Final
Budget -
2017 Actual Positive2016 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Expenditures: (continued)
General government: (continued)
Elections:
Current:
Personal services$ - $ - $ - $ - $4,396
Materials and supplies - - - - 431
Other services and charges1,2001,2001,660(460)1,293
Total elections1,2001,2001,660(460)6,120
Finance:
Current:
Personal services172,613172,613170,3712,242164,715
Materials and supplies2,8002,8001,0701,7301,479
Other services and charges31,36531,36528,4572,90827,846
Total finance206,778206,778199,8986,880194,040
Computer system:
Current:
Materials and supplies2,0002,0001,7062943,263
Other services and charges45,70045,70034,05511,64533,461
Total computer system47,70047,70035,76111,93936,724
Audit:
Current:
Personal services31,12031,12032,800(1,680)25,246
Insurance:
Current:
Other services and charges400,650400,650388,79811,852352,279
Assessing:
Current:
Personal services23,60023,60024,039(439)23,068
Planning and zoning:
Current:
Personal services30,00030,00036,371(6,371)27,348
Materials and supplies200200 - 200 -
Other services and charges1,8001,800885915525
Total planning and zoning32,00032,00037,256(5,256)27,873
Engineering:
Current:
Other services and charges30,00030,00024,2745,72618,833
General contingency:
Current:
Other services and charges15,00015,00078614,214768
Total general government1,394,1721,394,1721,285,258108,9141,225,283
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATIONStatement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUNDPage 3 of 4
For The Year Ended December 31, 2017
With Comparative Actual Amounts For The Year Ended December 31, 2016
Variance
with Final
Budget -
2017 Actual Positive2016 Actual
Amounts(Negative)Amounts
Budgeted Amounts
Expenditures: (continued)OriginalFinal
Public safety:
Police department:
Current:
Personal services$1,085,417$1,085,417$1,029,148$56,269$1,017,937
Materials and supplies62,68062,68040,58722,09344,562
Other services and charges239,819239,819227,69812,121226,457
Total police department1,387,9161,387,9161,297,43390,4831,288,956
Building inspections:
Current:
Personal services85,82085,82084,5701,25082,344
Materials and supplies2,9002,9004042,4961,655
Other services and charges17,20117,20113,7783,42313,901
Total building inspections105,921105,92198,7527,16997,900
Fire protection:
Current:
Materials and supplies2,0002,0002,000 - 2,000
Other services and charges238,300238,300244,982(6,682)233,587
Total fire protection240,300240,300246,982(6,682)235,587
Civil defense:
Current:
Other services and charges1,6101,6102,213(603)97
Animal control:
Current:
Materials and supplies150150661(511)58
Other services and charges1,5001,5002591,241120
Total animal control1,6501,650920730178
Total public safety1,737,3971,737,3971,646,30091,0971,622,718
Public works:
Street maintenance:
Current:
Personal services26,80426,80423,7653,03923,212
Materials and supplies15,20015,20012,7152,4859,281
Other services and charges59,97659,97629,84230,13425,208
Total street maintenance101,980101,98066,32235,65857,701
Snow removal:
Current:
Materials and supplies1,0001,000385615125
Other services and charges201,000201,000114,05386,94793,654
Total snow removal202,000202,000114,43887,56293,779
Sanitation:
Current:
Other services and charges216,900216,900203,99712,903204,434
Street lighting:
Current:
Other services and charges70,60070,60061,4389,16265,232
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATIONStatement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUNDPage 4 of 4
For The Year Ended December 31, 2017
With Comparative Actual Amounts For The Year Ended December 31, 2016
Variance
with Final
Budget -
2017 Actual Positive2016 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Expenditures: (continued)
Public works: (continued)
Arborist:
Current:
Personal services$5,000$5,000$ - $5,000$ -
Materials and supplies - - - - 75
Other services and charges300300622(322)355
Total arborist5,3005,3006224,678430
Tree removal and planting:
Current:
Other services and charges35,00035,00034,72527533,735
Total public works631,780631,780481,542150,238455,311
Parks and recreation:
Parks, playgrounds and rinks:
Current:
Personal services70,20770,20757,27612,93162,024
Materials and supplies30,90030,90028,6162,28425,656
Other services and charges77,36577,36556,92120,44476,631
Total parks and recreation178,472178,472142,81335,659164,311
Total expenditures3,941,8213,941,8213,555,913385,9083,467,623
Revenues over expenditures
1,697,8251,697,8252,352,877655,0522,516,113
Other financing sources (uses):
Sale of capital assets - - 8,1888,1883,690
Transfers in - - - - -
Transfers out(1,697,825)(1,697,825)(2,528,949)(831,124)(2,142,004)
Total other financing sources (uses)(1,697,825)(1,697,825)(2,520,761)(822,936)(2,138,314)
Net change in fund balance$0$0(167,884)($167,884)377,799
Fund balance - January 15,010,3324,632,533
Fund balance - December 31$4,842,448$5,010,332
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, 2017
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
Measurement Fiscal Year(Percentage) ofof the NetLiabilityPension LiabilityPercentage of itsa Percentage
DateEndingthe Net PensionPensionAssociated with Associated with CoveredCoveredof the Total
June 30December 31LiabilityLiability (a)City (b)City (a+b)Payroll (c)Payroll ((a+b)/c)Pension Liability
201520150.0121%$627,085$ - $627,085$710,89888.2%78.2%
201620160.0118%958,10112,561970,662733,895132.3%68.9%
201720170.0116%740,5369,331749,867748,855100.1%75.9%
* 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, 2017
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%
December 31, 201758,55358,553 - 780,7047.5%
* 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, 2017
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%
June 30, 2017December 31, 20170.0850%1,147,601875,089131.1%85.4%
* 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, 2017
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%
December 31, 2017146,925146,925 - 906,94616.2%
* 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
NOTES TO RSI
December 31, 2017
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
2017 Changes
Changes is Actuarial Assumptions:
-The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and
60 percent for vested and non-vested deferred members. The revised CSA loads are now 0.0 percent
for active member liability, 15.0 percent for vested deferred member liability and 3.0 percent for non-
vested deferred member liability.
-The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all years
to 1.0 percent per year through 2044 and 2.5 percent per year thereafter.
2016 Changes
Changes in Actuarial Assumptions:
-The assumed post-retirement benefit increase rate was changed from 1.0% 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
2017 Changes
Changes in Actuarial Assumptions:
-The single discount rate was changed from 5.6% to 7.5%.
-Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The
net effect is proposed rates that average 0.34 percent lower than the previous rates.
-Assumed rates of retirement were changed, resulting in fewer retirements.
-The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred
members. The CSO has been changed to 33 percent for vested members and 2 percent for non-vested
members.
-The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table
to the RP-2014 fully generational table (with a base year for 2006), with male rates adjusted by a factor
of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTES TO RSI
December 31, 2017
mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the
mortality tables assumed for healthy retirees.
-Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates
beyond the selection period of three years were adjusted, resulting in more expected terminations
overall.
-Assumed percentage of married female members decreased from 65 percent to 60 percent.
-Assumed age difference was changed from separate assumptions for male members (wives assumed to
be three years younger) and female members (husbands assumed to be four years older) to the
assumption that males are two years older than females.
-The assumed percentage of female members electing Joint and Survivor annuities was increased.
-The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years to 1.00
percent per year through 2064 and 2.50 percent thereafter.
2016 Changes
Changes in Actuarial Assumptions:
-The assumed post-retirement benefit increase rate was changed from 1.0% 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, 2017
With Comparative Totals For December 31, 2016
Totals
Nonmajor
SpecialDebtCapitalGovernmental Funds
AssetsRevenueServiceProject20172016
Cash and investments$260,933$132,463$4,606,541$4,999,937$5,027,123
Accrued interest receivable57744017,05818,075 -
Accounts receivable - net805 - - 805 -
Due from other governments - - - - -
Land held for resale - - - - 126,000
Total assets$262,315$132,903$4,623,599$5,018,817$5,153,123
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$86,281$ - $8,974$95,255$75,313
Contracts payable - - 28,56128,5616,122
Unearned revenue - - 3,5643,5643,394
Total liabilities86,281041,099127,38084,829
Deferred inflows of resources:
Unavailable revenue - - - - 126,000
Fund balance:
Restricted176,034132,90347,468356,405614,598
Assigned - - 4,535,0324,535,0324,327,696
Total fund balance176,034132,9034,582,5004,891,4374,942,294
Total liabilities, deferred inflows
of resources, and fund balance$262,315$132,903$4,623,599$5,018,817$5,153,123
CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 16
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2017
With Comparative Totals For The Year Ended December 31, 2016
Totals
Special DebtCapitalNonmajor Governmental Funds
RevenueServiceProject20172016
Revenues:
Intergovernmental$ - $ - $ - $ - $380,000
Tax increment215,197 - - 215,197185,539
Charges for services - - 185,741185,74164,654
Fines and forfeits8,060 - - 8,06010,863
Investment income1,7801,49158,35361,62488,159
Refunds and reimbursements - - - - 421
Total revenues225,037 1,491 244,094 470,622 729,636
Expenditures:
Current:
General government172,941 - 3,240176,181150,630
Public safety5,488 - - 5,48813,093
Public works - - 1,9421,94213,730
Parks and recreation - - 6,9636,96339,941
Capital outlay - - 641,962641,962202,187
Debt service:
Principal - 435,000 - 435,000125,000
Interest - 119,861 - 119,861132,225
Total expenditures178,429 554,861 654,107 1,387,397 676,806
Revenues over (under) expenditures46,608 (553,370)(410,013)(916,775)52,830
Other financing sources (uses):
Transfers in - 553,000531,4861,084,486480,968
Transfers out - - (185,000)(185,000)(4,914,930)
Total other financing sources (uses)0 553,000 346,486 899,486 (4,433,962)
Net change in fund balance46,608 (370)(63,527)(17,289)(4,381,132)
Fund balance - January 1129,426133,2734,646,0274,908,7269,323,426
Fund balance - December 31$176,034$132,903$4,582,500$4,891,437$4,942,294
Reconciliation of beginning fund balance to prior year ending fund balance:
Prior year ending fund balance reported above$4,942,294
Less prior year ending fund balance for funds reported as nonmajor in the prior year and major
in the current year:
204 Economic Development(33,568)
Current year beginning fund balance$4,908,726
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEETStatement 17
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2017
With Comparative Totals For December 31, 2016
202 Forfeiture 205 TIF
Totals Nonmajor Special
and SeizureDistrict #1
Revenue Funds
Assets20172016
Cash and investments$9,324$251,609$260,933$237,210
Accrued interest receivable30547577 -
Accounts receivable805 - 805 -
Land held for resale - - - 126,000
Total assets$10,159$252,156$262,315$363,210
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$122$86,159$86,281$74,216
Total liabilities12286,15986,28174,216
Deferred inflows of resources:
Unavailable revenue - - - 126,000
Fund balance:
Restricted10,037165,997176,034129,426
Assigned - - - 33,568
Total fund balance10,037165,997176,034162,994
Total liabilities, deferred infows
of resources, and fund balance$10,159$252,156$262,315$363,210
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEETStatement 19
NONMAJOR DEBT SERVICE FUNDS
December 31, 2017
With Comparative Totals For December 31, 2016
527 G.O.
Capital528 G.O. CIP
ImprovementRefunding
Bonds of 2009Bonds of 2012ATotal Nonmajor Debt Service Funds
20172016
Assets
Cash and investments$17,735$114,728$132,463$133,273
Accrued interest receivable144296440 -
Total assets$17,879 $115,024 $132,903 $133,273
Liabilities and Fund Balance
Liabilities$ - $ - $ - $ -
Fund balance:
Restricted17,879115,024132,903133,273
Total liabilities and fund balance$17,879 $115,024 $132,903 $133,273
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, 2017
With Comparative Totals For The Year Ended December 31, 2016
527 G.O. Capital 528 G.O. CIP
ImprovementRefunding Bonds
Bonds of 2009of 2012A
Total Nonmajor Debt Service Funds
20172016
Revenues:
Investment income$488$1,003$1,491$47,470
Expenditures:
Debt service:
Principal130,000305,000435,000125,000
Interest14,609105,252119,861132,225
Total expenditures144,609410,252554,861257,225
Revenues over (under) expenditures(144,121)(409,249)(553,370)(209,755)
Other financing sources (uses):
Transfers in143,000410,000553,000241,562
Transfers out - - - (4,860,000)
Total other financing sources (uses)143,000410,000553,000(4,618,438)
Net change in fund balance(1,121)751(370)(4,828,193)
Fund balance - January 119,000114,273133,2734,961,466
Fund balance - December 31$17,879 $115,024 $132,903 $133,273
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2017
With Comparative Totals For The Year Ended December 31, 2016
712 Storm
Sewer
500 Capital Renewal /
405 Park 407 Moelter Revolving572 City Hall Replacement
DevelopmentParkFundImprovementsFund
Revenues:
Intergovernmental$ - $ - $ - $ - $ -
Charges for services:
Rents - - - - -
Connection charges - - - - -
Park dedication fees43,280 - - - -
Investment income8,3902,7834,8231,1896,377
Total revenues51,6702,7834,8231,1896,377
Expenditures:
Current:
General government - - - 3,240 -
Public works - - 1,942 - -
Parks and recreation5,4581,505 - - -
Capital outlay615,361 - - 5,421 -
Total expenditures620,8191,5051,9428,6610
Revenues over (under) expenditures(569,149)1,2782,881(7,472)6,377
Other financing sources (uses):
Transfers in390,000 - - - 87,624
Transfers out(45,000)(140,000) - - -
Total other financing sources (uses)345,000(140,000)0087,624
Net change in fund balance(224,149)(138,722)2,881(7,472)94,001
Fund balance - January 1731,530243,249375,88493,681476,449
Fund balance - December 31$507,381 $104,527 $378,765 $86,209 $570,450
Statement 22
734 Water 771 Sanitary 773 AAE -
Tower735 Well 736 Sewer Sewer772 Water Storm Sewer
Totals Nonmajor Capital Project
RehabilitationRehabilitationRehabilitationConnectionConnectionConnection
Funds
20172016
$ - $ - $ - $ - $ - $ - $ - $380,000
40,730 - - - - - 40,73038,791
- - - 15,25779,3357,139101,7319,080
- - - - - - 43,28016,783
5,7181,5317085,8987,97212,96458,35339,484
46,4481,53170821,15587,30720,103244,094484,138
- - - - - - 3,240 -
- - - - - - 1,94213,730
- - - - - - 6,96339,941
- 21,180 - - - - 641,962202,187
021,1800000654,107255,858
46,448(19,649)70821,15587,30720,103(410,013)228,280
40,47911,4451,938 - - - 531,486239,406
- - - - - - (185,000)(54,930)
40,47911,4451,938000346,486184,476
86,927(8,204)2,64621,15587,30720,103(63,527)412,756
440,013134,48755,616460,035625,2661,009,8174,646,0274,233,271
$526,940 $126,283 $58,262 $481,190 $712,573 $1,029,920 $4,582,500 $4,646,027
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEETStatement 23
AGENCY FUNDS
December 31, 2017
With Comparative Totals For December 31, 2016
902 Developer 903 Developer
Deposit FundEscrow FundTotals - Agency Funds
20172016
Assets
Cash and investments$266,430$165,997$432,427$391,096
Due from developers9,036 - 9,03617,715
Total assets$275,466 $165,997 $441,463 $408,811
Liabilities
Escrow deposits payable$ - $165,997$165,997$165,997
Accounts payable1,882 - 1,8826,566
Due to developers273,584 - 273,584236,248
Total liabilities$275,466 $165,997 $441,463 $408,811
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIESStatement 24
AGENCY FUNDS
For The Year Ended December 31, 2017
BalanceBalance
January 1,December 31,
2017AdditionsDeletions2017
902 Developer Deposit Fund
Assets:
Cash and investments$225,099$81,152$39,821$266,430
Due from developers17,7156,35515,0349,036
Total assets$242,814$87,507$54,855$275,466
Liabilities:
Accounts payable$6,566$117,190$121,874$1,882
Due to developers236,248273,584236,248273,584
Total liabilities$242,814$390,774$358,122$275,466
903 Developer Escrow Fund
Assets:
s$165,997$11,200$11,200$165,997
Cash and investment
Liabilities:
Escrow deposits payable$165,997$11,200$11,200$165,997
Total Agency:
Assets:
Cash and investments$391,096$92,352$51,021$432,427
Due from developers17,7156,35515,0349,036
Total assets$408,811$98,707$66,055$441,463
Liabilities:
Escrow deposits payable$165,997$11,200$11,200$165,997
Accounts payable6,566117,190121,8741,882
Due to developers236,248273,584236,248273,584
Total liabilities$408,811$401,974$369,322$441,463
STATISTICAL SECTION (UNAUDITED)
CITY OF OAK PARK HEIGHTS, MINNESOTA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2008200920102011
Governmental activities:
Net investment in capital assets$12,328,032$11,908,771$11,519,528$11,381,436
Restricted235,559867,1031,234,8351,152,789
Unrestricted11,705,19212,164,92513,308,71213,958,689
Total governmental activities net position$24,268,783$24,940,799$26,063,075$26,492,914
Business-type activities:
Net investment in capital assets$6,227,796$6,925,825$6,752,968$6,964,787
Unrestricted1,165,2051,156,2081,166,8531,135,679
Total business-type activities net position$7,393,001$8,082,033$7,919,821$8,100,466
Primary government:
Net investment in capital assets$18,555,828$18,834,596$18,272,496$18,346,223
Restricted235,559867,1031,234,8351,152,789
Unrestricted12,870,39713,321,13314,475,56515,094,368
Total primary government net position$31,661,784$33,022,832$33,982,896$34,593,380
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
201220132014201520162017
$11,172,202$11,849,446$11,756,453$14,030,120$11,918,132$12,802,720
1,007,208842,2101,355,9602,464,3682,353,2501,916,158
15,242,15715,826,32717,258,01913,890,90315,317,94516,497,229
$27,421,567$28,517,983$30,370,432$30,385,391$29,589,327$31,216,107
$6,746,344$6,604,514$6,774,330$8,069,044$12,010,748$11,741,857
1,279,8741,448,7881,746,0161,923,2771,948,7012,029,552
$8,026,218$8,053,302$8,520,346$9,992,321$13,959,449$13,771,409
$17,918,546$18,453,960$18,530,783$22,099,164$23,928,880$24,544,577
1,007,208842,2101,355,9602,464,3682,353,2501,916,158
16,522,03117,275,11519,004,03515,814,18017,266,64618,526,781
$35,447,785$36,571,285$38,890,778$40,377,712$43,548,776$44,987,516
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2008200920102011
Expenses
Governmental activities:
General government$1,477,836$1,356,038$1,575,297$1,381,589
Public safety1,347,1641,364,7341,407,1611,411,690
Public works796,532957,308980,630999,473
Parks and recreation224,426211,795201,716239,100
Interest on long-term debt138,399262,586280,548275,196
Total governmental activities expenses3,984,3574,152,4614,445,3524,307,048
Business-type activities:
Water405,965434,577466,218472,040
Sanitary sewer670,661680,468740,184746,656
Storm sewer59,11543,337108,46748,360
Total business-type activities expenses1,135,7411,158,3821,314,8691,267,056
Total primary government expenses$5,120,098$5,310,843$5,760,221$5,574,104
Program revenues
Governmental activities:
Charges for services:
Licenses and permits$203,041$100,074$197,181$131,081
Administrative - Enterprise Fund62,04064,40066,42069,425
Direct charges to developers - - - -
Connection charges - 5,419147,09818,824
Park fees - - 241,440 -
Refunds and reimbursements153,267112,856117,735114,847
Other activities84,905112,161180,639107,860
Operating grants and contributions90,54888,187145,04896,402
Capital grants and contributions10,091688,97576,97015,943
Total governmental activities program revenues603,8921,172,0721,172,531554,382
Business-type activities:
Charges for services:
Water475,658546,606565,859648,663
Sanitary sewer656,809651,022749,378782,266
Storm sewer74,25774,47375,69866,740
Sanitation494 - - -
Operating grants and contributions - - - 4,594
Capital grants and contributions - - - -
Total business-type activities
program revenues1,207,2181,272,1011,390,9351,502,263
Total primary government program revenues$1,811,110$2,444,173$2,563,466$2,056,645
Table 2
Page 1 of 2
201220132014201520162017
$1,455,359$1,601,402$1,663,866$1,685,452$1,708,148$1,788,767
1,431,5941,497,7651,565,5441,564,0582,226,4911,909,268
1,128,2491,080,4371,020,664903,8581,548,5841,417,236
248,243269,929285,877315,390373,279319,576
377,713463,537463,217406,215394,165174,158
4,641,1584,913,0704,999,1684,874,9736,250,6675,609,005
470,266468,932477,771496,607614,628611,185
668,588695,817694,406749,937909,565855,051
43,90458,23946,39360,08164,32155,576
1,182,7581,222,9881,218,5701,306,6251,588,5141,521,812
$5,823,916$6,136,058$6,217,738$6,181,598$7,839,181$7,130,817
$163,986$90,910$137,543$125,704$214,182$172,736
3,8304,1804,2484,2424,4005,350
- - - 109,36541,93851,370
- - - 215,9629,080101,731
- - - - 16,78343,280
125,243108,83890,109105,206166,633113,056
102,320390,340178,687139,148132,974133,342
112,91299,171101,443105,231109,101139,695
24,131341,9911,121,1741,209,43275,11087,983
532,4221,035,4301,633,2042,014,290770,201848,543
714,660720,590657,286781,537781,892805,201
800,281833,063927,129881,428924,1051,007,834
83,76288,06382,45282,88183,27883,887
- - - - - -
- - - 7,9301,382 -
- 23,2341,248516 - -
1,598,7031,664,9501,668,1151,754,2921,790,6571,896,922
$2,131,125$2,700,380$3,301,319$3,768,582$2,560,858$2,745,465
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2008200920102011
Net (expense) revenue:
Governmental activities($3,380,465)($2,980,389)($3,272,821)($3,752,666)
Business-type activities71,477113,71976,066235,207
Total primary government net
(expense) revenue(3,308,988)(2,866,670)(3,196,755)(3,517,459)
General revenues and other changes in net position:
Governmental activities:
General property taxes and tax increment3,146,0493,537,8293,692,1273,934,309
Unrestricted grants and contributions56,693180,430104,9872,040
Investment earnings606,996456,934320,183239,763
Gain on sale of property20,89512,165 - 8,960
Miscellaneous22,14814,18616,58817,718
Transfers432,248(549,139)261,212(20,285)
Total governmental activities4,285,0293,652,4054,395,0974,182,505
Business-type activities:
Investment earnings43,08026,17422,93417,780
Unrestricted grants and contributions - - - -
Loss on sale of capital assets - - - -
Other - - - -
Transfers(432,248)549,139(261,212)20,285
Total business-type activities(389,168)575,313(238,278)38,065
Total primary government$3,895,861$4,227,718$4,156,819$4,220,570
Change in net position:
Governmental activities$904,564$672,016$1,122,276$429,839
Business-type activities(317,691)689,032(162,212)273,272
Total primary government$586,873$1,361,048$960,064$703,111
Note: GASB 68 was implemented in 2015. Pension expense for years prior to 2015 was not restated.
Table 2
Page 2 of 2
201220132014201520162017
($4,108,736)($3,877,640)($3,365,964)($2,860,683)($5,480,466)($4,760,462)
415,945441,962449,545447,667202,143375,110
(3,692,791)(3,435,678)(2,916,419)(2,413,016)(5,278,323)(4,385,352)
4,289,5664,541,1034,706,9745,289,0305,504,0995,503,870
2,0402,0402,04010,32013,97510,320
204,422(85,474)421,387154,098202,911236,128
7,9501,95644,198 - - -
29,17226,52631,64422,65536,35449,687
504,239406,38012,170(1,012,761)(1,072,937)587,237
5,037,3894,892,5315,218,4134,463,3424,684,4026,387,242
14,046(7,026)29,66911,54717,09124,087
- - - - 2,674,692 -
- (1,472) - - - -
- - - - 265 -
(504,239)(406,380)(12,170)1,012,7611,072,937(587,237)
(490,193)(414,878)17,4991,024,3083,764,985(563,150)
$4,547,196$4,477,653$5,235,912$5,487,650$8,449,387$5,824,092
$928,653$1,014,891$1,852,449$1,602,659($796,064)$1,626,780
(74,248)27,084467,0441,471,9753,967,128(188,040)
$854,405$1,041,975$2,319,493$3,074,634$3,171,064$1,438,740
CITY OF OAK PARK HEIGHTS, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2008200920102011
General Fund:
Nonspendable$ - $ - $ - $2,057
Restricted - - - -
Assigned for:
Employee benefits188,000188,000172,000179,000
Ensuing year's budget - 193,635100,000 -
Unassigned:
Cash flow reserve1,541,0001,558,0001,593,0001,911,000
General contingency reserve542,000557,000554,000698,000
Snow plow reserve - - - -
Remaining unassigned balance345,370223,377554,797471,504
Total general fund$2,616,370$2,720,012$2,973,797$3,261,561
All other governmental funds:
Restricted for:
Debt service$127,247$102,115$97,296$112,571
Park improvements - - - 913,170
Law enforcement - - - 8,155
Tax increment - - - -
Unspent bond proceeds - - - -
Small cities grant - - - -
Assigned, reported in:
Special revenue funds102,181100,73788,47131,198
Capital projects funds14,977,67813,236,36111,188,96810,704,782
Unassigned - - - -
Total all other governmental funds$15,207,106$13,439,213$11,374,735$11,769,876
Table 3
201220132014201520162017
$4,609$5,201$80,806$57,602$63,813$71,178
- - -54,188 - -
165,000173,000159,000165,000140,000171,000
- - - - - -
2,060,0002,125,0002,293,0002,370,0002,365,0002,426,000
734,000777,000810,000847,000846,000871,000
- - - -137,000140,000
706,024434,170560,0011,138,7431,458,5191,163,270
$3,669,633$3,514,371$3,902,807$4,632,533$5,010,332$4,842,448
$5,309,831$5,192,539$5,393,708$6,222,184$1,186,205$1,094,681
870,864815,549664,792544,506351,89947,468
6,9237,33013,3049,0967,36810,037
4,60419,33149,86086,341122,058165,997
- -1,118,479 - - -
- - - - -32,974
31,62731,32432,01933,25233,56833,999
11,645,00312,100,25812,434,63810,998,02612,927,23414,367,375
- -(377,266)(406,043)(405,964)(407,594)
$17,868,852$18,166,331$19,329,534$17,487,362$14,222,368$15,344,937
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2008200920102011
Revenues:
General property taxes$3,156,807$3,470,670$3,697,809$3,984,389
Tax increment - - - -
Special assessments32,07843,81028,58322,952
Licenses and permits203,041100,074197,181131,081
Intergovernmental141,141276,772282,55197,442
Charges for services102,199107,392561,411134,237
Fines and forfeits63,60274,58873,76160,822
Investment income606,996456,934320,183239,763
Direct charges to developers - - - -
Refunds and reimbursements134,987137,422134,323132,565
Donations and contributions27,672612,5252,18412,500
Total revenues4,468,523 5,280,187 5,297,986 4,815,751
Expenditures:
Current:
General government1,075,6161,117,8221,370,3811,178,710
Public safety1,292,4651,277,6001,312,3351,351,567
Public works632,530586,872592,897605,955
Parks and recreation146,928139,188125,414129,327
Capital outlay901,5644,957,6533,583,666767,988
Debt service:
Principal retirement750,000135,000250,000255,000
Interest and other134,850255,213272,000266,675
Bond issuance costs111,02033,537 - -
Total expenditures5,044,973 8,502,885 7,506,693 4,555,222
Revenues over (under) expenditures(576,450)(3,222,698)(2,208,707)260,529
Other financing sources (uses):
Sale of capital assets21,28912,20042510,010
Bonds issued6,300,0001,195,000 - -
Premium on bonds issued5,827 - - -
Transfers in1,790,9261,144,241397,589412,366
Transfers out(1,275,843)(792,994) - -
Total other financing sources (uses)6,842,199 1,558,447 398,014 422,376
Net change in fund balance$6,265,749($1,664,251)($1,810,693)$682,905
Debt service as a percentage of noncapital expenditures21.9%11.1%13.3%13.8%
Debt service as percentage of total expenditures 17.5%4.6%7.0%11.5%
Table 4
201220132014201520162017
$4,245,360$4,433,202$4,620,521$5,104,956$5,347,035$5,286,120
26,583106,924125,120184,251185,539215,197
21,90620,731237,636381,071220,052142,146
163,98690,910137,543125,704214,182172,736
114,952102,211453,283165,950491,141160,252
49,441337,912120,050292,18294,715234,139
56,70956,60862,88567,17051,73958,083
204,422(85,474)421,387153,792202,911236,128
- - - 109,36541,93850,020
154,415135,364106,553594,254235,466113,056
4005002004,55016,78325,948
5,038,174 5,198,888 6,285,178 7,183,245 7,101,501 6,693,825
1,195,1211,378,8911,445,4801,519,7831,383,2431,577,002
1,394,5861,449,1031,535,3871,620,7931,734,6231,748,641
737,001805,776601,870482,846582,368861,459
132,497152,061162,892176,416244,052173,776
160,8561,103,3094,540,0434,111,439661,9841,040,791
275,000295,000315,000500,0005,615,000835,000
260,680362,436396,195426,133422,650194,252
103,854 - 80,533 - - -
4,259,595 5,546,576 9,077,400 8,837,410 10,643,920 6,430,921
778,579 (347,688)(2,792,222)(1,654,165)(3,542,419)262,904
24,4182,00044,400 - 3,6908,188
5,140,000 - 3,775,000 - - -
155,137 - 111,689 - - -
408,9142,274,5404,081,6622,992,2087,952,6453,547,542
- (1,868,160)(3,668,890)(2,450,489)(7,301,111)(2,863,949)
5,728,469 408,380 4,343,861 541,719 655,224 691,781
$6,507,048$60,692$1,551,639($1,112,446)($2,887,195)$954,685
13.4%14.8%16.0%19.6%60.5%19.1%
12.6%11.9%7.8%10.5%56.7%16.0%
CITY OF OAK PARK HEIGHTS, MINNESOTA
TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Fiscal
YearCommercial/Total
EndedResidentialIndustrialPublicAllTax
December 31,PropertyPropertyUtilityOtherCapacity
2008$3,429,104$3,679,188$3,060,144$82,329$10,250,765
20093,483,7263,952,5233,568,95793,83211,099,038
20103,304,1103,869,5683,311,71687,48010,572,874
20113,202,6133,676,9853,454,88092,82210,427,300
20122,928,5143,567,1963,599,10491,66510,186,479
2013 2,736,977 3,528,330 3,990,896 96,10410,352,307
2014 2,834,815 3,424,868 3,904,920 96,65910,261,262
20153,280,4493,286,1024,148,06391,06810,805,682
20163,465,1713,279,6384,228,710118,87711,092,396
20173,880,8863,076,4634,401,366149,21011,507,925
Source: Washington County Certificate as to Taxes and Taxable Property
Table 5
Adjusted
Less:Less:Less:Tax Capacity
FiscalTaxPowerAdjustedTotalEstimatedas a Percent
DisparityIncrementLineTax CapacityDirect TaxMarketof Total Tax
ContributionCapturedCreditValueRateValueCapacity
$1,508,660$ - $ - $8,742,10536.343$673,570,60085.3%
-
2,177,678 - - 8,921,36038.732718,753,40080.4%
-
2,492,111 - - 8,080,76343.845682,742,10076.4%
-
2,117,456 - - 8,309,84445.028669,938,70079.7%
-
2,336,41126,913 - 7,823,15551.710643,608,30076.8%
-
2,346,765 108,254 - 7,897,28854.898641,169,000 76.3%
-
2,467,230 126,677 - 7,667,35559.641640,880,100 74.7%
-
2,214,196185,870 - 8,405,61656.804689,680,00077.8%
-
2,292,994187,846588,611,49857.725710,998,00077.6%
-
2,485,407217,872608,804,58656.143739,385,40076.5%
CITY OF OAK PARK HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES Table 6
Last Ten Fiscal Years
Overlapping Rates
City
FiscalDirectSchoolOther
YearRateCountyDistrictDistrictsTotal
200836.34325.93617.4044.88584.568
200938.73226.37117.7144.83287.649
201043.84527.77519.7345.10796.461
201145.02729.77220.3025.537100.637
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
201756.14330.44820.3904.345111.326
Source: Washington County website.
CITY OF OAK PARK HEIGHTS, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS Table 7
Current Year and Nine Years Ago
20172008
Percentage Percentage
Taxableof Total CityTaxableof Total City
CapacityCapacityCapacityCapacity
TaxpayerValueRankValueValueRankValue
Xcel Energy$4,693,994140.79%$3,300,504132.20%
VSSA Boutwells Landing LLC696,69626.05%503,76664.91%
Wal-Mart Real Estate Bus Trust291,30432.53%241,4387 2.36%
OPH Pat LLC & OPH Val LLC220,74241.92%318,74033.11%
Menard Inc.187,93251.63%216,930 52.12%
Oak Park Ponds LLC174,84661.52%223,894 4 2.18%
Lowe's Home Centers, Inc.171,26671.49%127,65281.25%
SC Mall LLC159,31881.38%404,268 2 3.94%
W.A.T.E. Enterprises Inc.128,41491.12%130,61991.27%
Oakgreen Commons143,814101.25% - - 0.00%
Raduenz Dealership - - 0.00%126,236101.23%
Total$6,868,32659.68%$5,594,04754.57%
Total All Property $11,507,925$10,250,765
Source: Washington County
CITY OF OAK PARK HEIGHTS, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS Table 8
Last Ten Fiscal Years
FiscalTaxesCollectionsCollected Within The
YearLeviedFiscal Year of the LevyinTotal Collections to Date
EndedFor ThePercentageSubsequentPercentage
December 31,Fiscal Year Amountof LevyYearsAmountof Levy
(1)
2008$3,286,249$3,236,35498.48%($35,600)$3,200,75497.40%
(1)
20093,574,8283,417,60195.60%74,4323,492,03397.68%
(1)
20103,662,4553,584,02797.86%(21,275)3,562,75297.28%
(1)
2011 3,870,770 98.67%(42,791)3,776,42997.56%3,819,220
(2)
20124,229,924 98.73%(80,164)4,095,96196.83%4,176,125
(2)
20134,549,431 97.99%(43,325)4,414,56197.04%4,457,886
(2)
20144,803,959 98.47%(12,962)4,717,38198.20%4,730,343
(2)
20155,044,879 99.70%13,5495,043,36399.97%5,029,814
(2), (3)
20165,215,633 99.64%11,7735,208,53199.86%5,196,758
20175,218,556 5,198,633 99.62% - 5,198,63399.62%
(1)
The levy amount presented is after deduction for Market Value Homestead Credit.
(2)
The levy amount presented includes excess TIF Tax.
(3)
Net of green acres collections
Source: City Finance Department.
CITY OF OAK PARK HEIGHTS, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE Table 9
Last Ten Fiscal Years
Governmental Activities
GeneralPercentage
FiscalObligationImprovementof TaxPer
YearBondsBondsTotalCapacityCapita
2008$ 6,300,000 - $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%3,202
201514,385,000 - 14,385,000133.12%3,057
20168,770,000 -8,770,00079.06%1,861
20177,935,000 -7,935,00068.95%1,684
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 were
called for prepayment in 2016.
CITY OF OAK PARK HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBTTable 10
December 31, 2017
Estimated
EstimatedShare of
DebtPercentageOverlapping
Governmental UnitOutstandingApplicableDebt
Debt repaid with property taxes:
Independent School District No. 834$104,900,0009.67%$10,143,830
Washington County129,790,0002.90%3,763,910
Metro Transit177,190,0000.28%496,132
Metropolian Council10,440,0000.25%26,100
Subtotal - overlapping debt14,429,972
City direct debt100.00%6,890,000
Total direct and overlapping debt$21,319,972
Sources: Northland Securities, Inc
CITY OF OAK PARK HEIGHTS, MINNESOTA
LEGAL DEBT MARGIN INFORMATIONTable 11
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2017
Market value$759,114,400
Debt limit (3% of market value)22,773,432
Debt applicable to limit:
Debt Applicable to Limit5,125,000
Legal debt margin$17,648,432
Legal Debt Margin Calculation for Fiscal Years 2008 Through 2017
Net DebtLegalAmount of Debt
FiscalDebtApplicable toDebtApplicable to
YearLimitLimitMarginDebt Limit
2008$20,207,118$6,300,000$13,907,11831.18%
200921,562,6026,165,00015,397,60228.59%
201020,482,2637,110,00013,372,26334.71%
201120,098,1616,855,00013,243,16134.11%
2012 19,308,249 6,860,00012,448,24935.53%
2013 19,235,070 6,565,00012,670,07034.13%
2014 19,991,982 6,250,00013,741,98231.26%
2015 21,366,828 5,915,00015,451,82827.68%
2016 22,008,489 5,560,00016,448,48925.26%
2017 22,773,432 5,125,00017,648,43222.50%
Note: In 2008, State Statutes increased the percentage used to calculate the debt limit from 2% to 3%.
CITY OF OAK PARK HEIGHTS, MINNESOTA
PLEDGED REVENUE COVERAGE Table 12
Last Ten Fiscal Years
Improvement Bonds
PropertySpecialProperty TaxTransfer FromProperty Tax
FiscalTaxAssessmentTransfer FromWater RevenueTransfer From
Debt Service
(1)(2)(3)(3)
CollectionsCollectionsGeneral FundGeneral Fund
YearFundPrincipalInterestCoverage
2008$ - $31,221$ - $ - $ - $750,000$10,8330.041
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 - - 108,831 - 548,000295,000362,4360.999
2014 - 217,836104,758 - 559,000315,000369,1951.289
2015 - 379,964104,758100,000608,000500,000426,1341.288
2016 - 220,0524,973,557101,000620,0005,615,000534,5910.962
2017 - 142,146 - 102,000677,100835,000192,6730.896
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
20084,7085.4%
20094,6537.5%
20104,3396.9%
20114,3396.1%
2012 4,4455.3%
Information Not Available
2013 4,6544.6%
2014 4,6483.8%
2015 4,7063.1%
2016 4,7123.4%
2017 4,7122.2%
Sources: Metropolitan Council (population), Continuing Disclosure Document or County Records (unemployment rate)
(1)
Information Not Available
CITY OF OAK PARK HEIGHTS, MINNESOTA1
PRINCIPAL EMPLOYERSTable 14
Current Year and Nine Years Ago
20172008
EmployerProduct ServiceEmployeesEmployees
Andersen CorporationWindow Manufacturer766635
VSSA - Boutwell's Landing/McKean SquareSenior Community Housing443215
State of Minnesota Correctional FacilityGovernment Correctional Institution367361
Wal-Mart Stores, Inc.Retail277310
ISD No. 834, StillwaterPublic education244184
Menard's Inc.Retail Lumber/Hardware144127
Xcel EnergyElectric Utility100 -
Lowe'sRetail115113
Stillwater MotorsAuto Dealership/Service Repair9777
Kowalski'sRetail/Grocery11084
Kohl'sRetail -113
Total2,6632,219
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/Program200820092010
General government:
Administration222
Finance333
Building inspections222
Public safety101010
Public works433
Total212020
Source: City Finance Department
Table 15
Full-Time Equivalent Employees as of December 31,
2011201220132014201520162017
2233333
3333222
2111111
10101111111111
4444444
21202222212121
CITY OF OAK PARK HEIGHTS, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program200820092010
Police:
Physical arrests224208176
Parking violations135170171
Traffic violations1,0169691,240
Fire:
Fire and related calls9891110
Medical calls292293260
Building inspection:
Permits issued:
Residential4 - 1
Commercial221
Total permit valuation$18,707,532$7,254,000$10,955,024
Water:
Connections1,3151,3181,317
Average daily demand (thousands of gallons)654,172681,816576,085
Sewer:
Connections1,2831,2851,268
Sources: Various City departments.
(1)
Connection for Irrigation accounts removed from the total
Table 16
Fiscal Year
2011201220132014201520162017
151151148169115122172
1559991868878124
8741,1261,0811,2831,2701,0701,356
83107170183172151148
306451546576596632676
-2 - 151 -
3211162
$1,828,000$8,776,295$4,781,710$4,781,710$7,000,000$13,613,536$3,320,000
(1)(1)(1)
1,3211,2731,2741,2741,2811,2811,291
593,496667,835626,000608,216573,463565,658603,332
1,2781,2861,2801,2801,2871,2871,306
CITY OF OAK PARK HEIGHTS, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program2008200920102011
Police:
Stations1111
Squad cars6666
Fire stations
Other public works:
Miles of paved streets22.022.022.022.0
Streetlights396396396396
Traffic signals2222
Parks and recreation:
Parkland acreage108104104104
Number of parks5555
Water:
Water mains (miles)26.827.127.127.1
Fire hydrants316265265265
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
201220132014201520162017
111111
666666
22.022.022.022.022.022.0
396396396396396396
222222
104104104104104104
555555
27.127.127.127.127.128.0
265265267270301301
750750750750750750
24.924.924.924.924.925.0
12.612.612.612.612.629.0