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ANNUAL FINANCIAL REPORT
December 31, 2005
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CITY OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
INTRODUCTORY SECTION
Elected and Appointed Officials 3
FINANCIAL SECTION
Independent Auditor's Report 7
Management's Discussion and Analysis 11
Basic Financial Statements:
Government -Wide Financial Statements:
Statement of Net Assets Statement 1 25
Statement of Activities Statement 2 26
Fund Financial Statements:
Balance Sheet - Governmental Funds
Statement 3
28
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental Funds
Statement 4
30
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds
Statement 5
32
Statement of Net Assets - Proprietary Funds
Statement 6
33
Statement of Revenues, Expenses, and Changes in Fund Net Assets -
Proprietary Funds
Statement 7
34
Statement of Cash Flows - Proprietary Funds
Statement 8
35
Statement of Fiduciary Net Assets - Agency Funds
Statement 9
36
Notes to Financial Statements
37
Required Supplementary Information:
Budgetary Comparison Schedule - General Fund
Statement 10
60
Budgetary Comparison Schedule - Note to RSI
64
Combining and Individual Fund Statements:
Combining Balance Sheet - Nonmajor Governmental Funds
Statement 11
68
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental Funds
Statement 12
69
CITY OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Agency Funds:
Page
Subcombining Balance Sheet
Reference
No.
Subcombining Balance Sheet - Nonmajor Special Revenue Funds
Statement 13
70
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue Funds
Statement 14
71
Subcombining Balance Sheet - Nonmajor Debt Service Funds
Statement 15
72
Subcombining Statement of Revenues, Expenditures and Changes in
Exhibit 2
83
Fund Balance - Nonmajor Debt Service Funds
Statement 16
73
Subcombining Balance Sheet - Nonmajor Capital Project Funds
Statement 17
74
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project Funds
Statement 18
76
Agency Funds:
Subcombining Balance Sheet
Statement 19
78
Subcombining Statement of Changes in Assets and Liabilities
Statement 20
79
Supplementary Financial Information:
Debt Service Payments to Maturity:
Revenue Bonds and General Debt Bonds
Exhibit 1
82
Taxable Valuations, Tax Levies and Tax Rates
Exhibit 2
83
Schedule of Construction Costs
Exhibit 3
84
STATISTICAL SECTION (UNAUDITED)
General and Special Revenue Funds - Expenditures by Function - Years 1996 through 2005 Table 1 86
General and Special Revenue Funds - Revenue by Source - Years 1996 through 2005 Table 2 87
Property Tax Levies and Collections - Years 1996 through 2005 Table 3 88
Special Assessment Collections - Years 1996 through 2005 Table 4 89
Principal Taxpayers Table 5 90
INTRODUCTORY SECTION
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CITY OF OAK PARK HEIGHTS, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
December 31, 2005
Term Expires
Mayor:
David Beaudet December 31, 2008
Councilmembers:
Les Abrahamson December 31, 2006
Mark Swenson December 31, 2006
Jack Doerr December 31, 2008
Mary McComber December 31, 2008
Administrator:
Eric Johnson Appointed
Deputy Clerk/Finance Director:
Judy Holst Appointed
3
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FINANCIAL, SECTION
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In accordance with Government Auditing Standards, we have also issued our report dated
March 2, 2006 on our consideration of the City of Oak Park Heights, Minnesota's internal
control over financial reporting and on our tests of its compliance with certain provisions of
laws, regulations, contracts and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit.
The Management's Discussion and Analysis and the budgetary comparison information, as
listed in the table of contents, are not a required part of the basic financial statements but are
supplementary information required by accounting principles generally accepted in the
United States of America. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and
presentation of the supplementary information. However, we did not audit the information
and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Oak Park Heights, Minnesota's basic financial statements.
The introductory section, combining and individual fund statements, supplementary financial
information and statistical tables are presented for purposes of additional analysis and are not
a required part of the basic financial statements. The combining and individual fund
statements and supplementary financial information have been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic financial statements taken as a whole.
The introductory section and statistical tables have not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we express
no opinion on them.
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
March 2, 2006
0
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10
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, 2005.
Financial Hihlihts
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$26,092,000 (Net assets). Of this amount, $9,322,000 (unrestricted net assets) 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 assets increased by $1,032,000.
As of the close of the current fiscal year, the City's governmental funds reported combined
ending fund balances of $8,502,000.
At the end of the current fiscal year the general fund balance was $2,104,000 of which
$1,818,000 is designated.
The General Fund balance increased by $256,000 as a result of positive budget variances in
both revenues and expenditures.
The City was able to transfer an additional $209,000 from the General Fund to the Budgeted
Projects Fund for capital improvements for streets, parks, police department equipment, civil
defense, and general government.
The G. O. Refunding Bonds of 2001 were used to finance the 1995 Street Reconstruction
Project. This bond issue was retired as of December 1, 2005.
The Sanitary Sewer Connection Charge Fund, Water Connection Charge Fund and Storm
Sewer Connection Charge Fund collected $33,000 of connection charges in the year 2005.
With the exception of sanitation, all four enterprise fund operations reported net operating
income in 2005.
11
Management's Discussion and Analysis
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the City's basic
financial statements. The City's basic financial statements comprise three components: 1)
government -wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains other supplementary information in addition
to the basic financial statements themselves.
Government -wide financial statements. The government -wide financial statements are
designed to provide readers with a broad overview of the City's finances, in a manner similar
to a private- sector business.
The statement of net assets presents information on all of the City's assets and liabilities,
with the difference between the two reported as net assets. Over time, increases or decreases
in net assets may serve as a useful indicator of whether the financial position of the City is
improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed
during the most recent fiscal year. All changes in net assets 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, sanitation 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.
12
Management's Discussion and Analysis
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government -wide financial statements.
However, unlike the government -wide financial statements, governmental fund financial
statements focus on near -term inflows and outflows of spendable resource, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government's near -term financial requirements.
Because the focus of governmental funds is narrower than that of the government -wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government -wide
financial statements. By doing so, readers may better understand the long -term impact of the
City's near term financial decisions. Both the governmental fund balance sheet and
governmental fund statement of revenues, expenditures and change in fund balance provide a
reconciliation to facilitate this comparison between governmental funds and governmental
activities.
The City maintains five 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 balances for the following major funds:
® General Fund
• G.O. Improvement Bonds of 1998 — Debt Service Fund
• Renewal and Replacement Fund — Capital Project Fund
• McKean Square Fund — Capital Project Fund
• AAE — Storm Sewer Connection 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 combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund.
A budgetary comparison statement has been provided for this fund to demonstrate
compliance with this budget.
The basic governmental fund financial statements are statements 3 through 5 of this report.
Proprietary funds. The City maintains four 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, sanitation and storm sewer operations.
13
Management's Discussion and Analysis
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
Sanitation
Storm Sewer
The basic proprietary fund financial statements are statements 6 through 8 of this report.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the City. Fiduciary funds are not reflected by the government -wide financial
statements because the resources of those funds are not available to support the City's own
programs.
The basic fiduciary fund statements are Statements 9, 19 and 20.
Notes to the financial statements. The notes provide additional information that is essential
to a full understanding of the data provided in the government —wide and fund financial
statements. The notes to the financial statements can be found following Statement 9.
Other information. The combining statements referred to earlier in connection with non -
major governmental funds are presented immediately following the required supplementary
information on budgetary comparisons. Combining and individual fund statements and
schedules are presented as Statements 11 through 20.
Government -Wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's
financial position. In the case of the City, assets exceeded liabilities by $26,092,000 at the
close of the most recent fiscal year.
The largest portion of the City's net assets ($15,914,000 or 61% percent) 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.
14
Management's Discussion and Analysis
City of Oak Park Heights' Net Assets
A portion of the City's net assets represent resources that are subject to external restrictions
on how they may be used. The remaining balance of unrestricted net assets may be used to
meet the City's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three
categories of net assets, both for the government as a whole, as well as for its separate
governmental and business -type activities.
15
Governmental Activities
Business -Type
Activities
Totals
2005
2004
2005
2004
2005
2004
Current and other assets
$9,423,353
$8,969,078
$1,194,780
$917,162
$10,618,133
$9,886,240
Capital assets
10,993,521
11,524,715
5,985,350
5,646,237
16,978,871
17,170,952
Total assets
$20,416,874
$20,493,793
$7,180,130
$6,563,399
727,597,004
$27,057,192
Long -term liabilities outstanding
$1,032,136
$1,211,107
$20,408
$16,429
$1,052,544
$1,227,536
Other liabilities
386,093
703,986
66,303
65,906
452,396
769,892
Total liabilities
$1,418,229
$1,915,093
$86,711
$82,335
$1,504,940
$1,997,428
Net assets:
Invested in capital assets, net of related debt
$9,928,521
$10,059,989
$5,985,350
$5,646,237
$ 1 5,913,871
$15,706,226
Restricted
856,611
1,192,681
-
-
856,611
1,192,681
Unrestricted
8,213,513
7,326,030
1,108,069
834,827
9,321,582
8,160,857
Total net assets
$18,998,645
$18,578,700
$7,093,419
$6,481,064
$26,092,064
$25,059,764
A portion of the City's net assets represent resources that are subject to external restrictions
on how they may be used. The remaining balance of unrestricted net assets may be used to
meet the City's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three
categories of net assets, both for the government as a whole, as well as for its separate
governmental and business -type activities.
15
Management's Discussion and Analysis
Governmental Activities
Governmental activities increased the City's net assets by $420,000 during 2005. Key
elements of this increase are as follows:
City of Oak Park Heights' Changes in Net Assets
16
Governmental Activities
Business -Type Activities
Totals
2005
2004
2005
2004
2005
2004
Revenues:
Program revenues:
Charges for services
$975,968
$948,633
$1,299,737
$1,133,238
$2,275,705
$2,081,871
Operating grants and contributions
88,229
68,358
-
88,229
68,358
Capital grants and contributions
62,686
212,635
58,706
62,686
271,341
General revenues:
General property taxes
2,222,335
1,979,288
-
-
2,222,335
1,979,288
Grants and contributions not
restricted to specific programs
2,040
3,060
2,040
3,060
Gain on sale of capital assets
950
-
950
-
Other revenue
24,256
29,125
-
-
24,256
29,125
Unrestricted investment earnings
258,614
199,737
29,268
19,148
287,882
218,885
Total revenues
3,635,078
3,440,836
1,329,005
1,211,092
4,964,083
4,651,928
Expenses:
General government
882,800
832,609
-
-
882,800
832,609
Public safety
1,210,179
1,155,243
1,210,179
1,155,243
Public works
511,137
602,111
511,137
602,111
Parks and recreation
138,378
123,737
138,378
123,737
Interest on long -term debt
55,695
67,365
-
-
55,695
67,365
Water
-
-
373,996
323,527
373,996
323,527
Sanitary sewer
560,876
517,595
560,876
517,595
Storm sewer
34,150
41,082
34,150
41,082
Sanitation
-
164,572
167,258
164,572
167,258
Total expenses
2,798,189
2,781,065
1,133,594
1,049,462
3,931,783
3,830,527
Increase in net assets before transfers
836,889
659,771
195,411
161,630
1,032,300
821,401
Transfers
(416,944)
90,423
416,944
(90,423)
-
-
Change in net assets
419,945
750,194
612,355
71,207
1,032,300
821,401
Net assets - January 1, 2005
18,578,700
17,828,506
6,481,064
6,409,857
25,059,764
24,238,363
Net assets- December 31, 2005
$18,998,645
$18,578,700
$7,093,419
$6,481,064
$26,092,064
$25,059,764
16
Management's Discussion and Analysis
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenditures:
17
Management's Discussion and Analysis
Business -Type Activities
Business -type activities increased net assets by $612,000 during 2005. Below are graphs
showing the business -type activities revenue and expense comparisons:
Business -Type Activities - Revenues unrestricted
Investment
Earnings 2%
Charges for Services
98%
6
Management's Discussion and Analysis
Financial Analysis of the Government's Funds
Governmental Funds. The focus of the City's governmental funds is to provide information
on near -term inflows, outflows, and balances of spendable resources. Such information is
useful in assessing the City's financing requirements. In particular, unreserved fund balance
may serve as a useful measure of a government's net resources available for spending at the
end of the fiscal year.
At the end of the current fiscal year, the City's governmental funds reported combined
ending fund balances of $8,502,000.
The general fiend increased by $256,000 in 2005, which was due primarily to revenues
exceeding budget expectations. Revenues related to building activities contributed to the
revenue increase.
The G.O. Improvement Bonds of 1998 debt service fund decreased by $8,000 during 2005.
The Renewal and Replacement capital project fund increased by $238,000 during 2005. This
fund receives an annual transfer from the proprietary funds in an amount equal to
depreciation expense.
The McKean Square capital project fund is funded by direct charges to developers.
The AAE — Storm Sewer Connection capital project fund decreased by $135,000 due to
monies expended for the Kern Center pond expansion.
The nonmajor special revenue funds decreased by $5,000 during 2005.
The nonmajor debt service funds decreased by $232,000 during 2005.
The nonmajor capital project fund increased by $623,000 during 2005.
Proprietary funds. The City's proprietary fiends provide the same type of information
found in the government -wide financial statements, but in more detail.
Budgetary Highlights
General Fund
The expenditure budget was amended to provide for changes in activity that occurred during
the year. The revenue budget was amended to recognize increased property taxes expected
which are offset by the State of Minnesota's market value credit and for additional
miscellaneous revenue collected.
19
Management's Discussion and Analysis
Capital Asset and Debt Administration
Capital assets. The City's investment in capital assets for its governmental and business -
type activities as of December 31, 2005, amounts to $15,914,000 (net of accumulated
depreciation). This investment in capital assets includes land, buildings and structures,
infrastructure, machinery and equipment and furniture and fixtures.
City of Oak Park Heights' Capital Assets
(Net of Depreciation)
Governmental activities capital assets - net $11,524,715 $1,067,213 ($1,598,407) $10,993,521
20
Beginning
Ending
Balance
Increases
Decreases
Balance
Governmental activities:
Capital assets, not being depreciated:
Land
$1,615,115
$1
$ -
$1,615,116
Construction in progress
1,556,631
358,345
(1,598,407)
316,569
Total capital assets, not being depreciated
3,171,746
358,346
(1,598,407)
1,931,685
Capital assets, being depreciated:
Buildings and structures
1,118,146
-
1,118,146
Other improvements
560,963
-
560,963
Machinery and equipment
406,060
21,000
(17,383)
409,677
Furniture and fixtures
139,921
-
139,921
Infrastructure
10,144,234
1,089,866
11,234,100
Total capital assets, being depreciated
12,369,324
1,110,866
(17,383)
13,462,807
Less accumulated depreciation for:
Buildings and structures
374,650
24,656
399,306
Other improvements
126,568
5,425
131,993
Machinery and equipment
224,955
46,934
(17,383)
254,506
Furniture and fixtures
81,484
9,233
90,717
Infrastructure
3,208,698
315,751
3,524,449
Total accumulated depreciation
4,016,355
401,999
(17,383)
4,400,971
Total capital assets being depreciated - net
8,352,969
708,867
0
9,061,836
Governmental activities capital assets - net $11,524,715 $1,067,213 ($1,598,407) $10,993,521
20
Management's Discussion and Analysis
Business -type activities:
Capital assets, not being depreciated:
Land
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings and structures
Machinery and equipment
Distribution and collection systems
Total capital assets, being depreciated
Less accumulated depreciation:
Buildings and structures
Machinery and equipment
Distribution and collection systems
Less accumulated depreciation
Total capital assets being depreciated - net
Business -type activities capital assets - net
Beginning Ending
Balance Increases Decreases Balance
$60,000 $ -
60,000 0
1,320,334 -
213,959 5,208
6,513,595 508,542
8,047,888 513,750
$ - $60,000
0 60,000
1,320,334
219,167
7,022,137
0 8,561,638
462,764
29,858
492,622
96,937
14,499
111,436
1,901,950
130,280
2,032,230
2,461,651
174,637
0 2,636,288
5,586,237
339,113
0 5,925,350
$5,646,237
$339,113
$0 $5,985,350
Additional information on the City's capital assets can be found in
Note 4.
Long-term debt. At the end of the current fiscal year, the City had total long -term debt
outstanding of $1,065,000, a decrease of $395,000 from 2004.
Additional long -term debt in the amount of $194,000 for compensated absences was also
outstanding at the end of 2005.
City of Oak Park Heights' Outstanding Debt
General obligation improvement bonds and compensated absences:
Governmental Activities
2005 2004
Business -Type Activities Totals
2005 2004 2005 2004
General Obligation Bonds $1,065,000 $1,460,000 $ - $ - $1,065,000 $1,460,000
Compensated absences 171,361 163,934 22,255 18,433 193,616 182,367
Total $1,236,361 $1,623,934 $22,255 $18,433 $1,258,616 $1,642,367
21
Management's Discussion and Analysis
State statutes limit the amount of general obligation debt a Minnesota city may issue to 2% of
total estimated market value. The current debt limitation for the City is $9,700,000. Of the
City's outstanding debt, none is counted within the statutory limitation.
Additional information on the City's long -term debt can be found in Note 5.
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.
22
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24
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2005
Statement I
'The accompanying notes are an integral part of these financial statements.
25
Governmental
Business -Type
Total
Assets:
Activities
Activities
2005
2004
Cash and investments
$8,363,093
$895,953
$9,259,046
$8,515,547
Accrued interest receivable
174,596
20,040
194,636
111,769
Accounts receivable - net
3,435
243,485
246,920
217,579
Due from other governmental units
110,422
8,943
119,365
41,153
Due from developers
6,782
-
6,782
6,958
Prepaid items
-
26,359
26,359
24,383
Taxes receivable:
Delinquent
45,063
-
45,063
41,632
Due from County
21,167
-
21,167
16,640
Special assessments receivable
698,795
-
698,795
910,579
Capital assets (net of accumulated depreciation):
Land
1,615,116
60,000
1,675,116
1,675,115
Building and structures
718,840
827,712
1,546,552
1,601,066
Other improvements
428,970
-
428,970
440,252
Machinery and equipment
155,171
107,731
262,902
298,127
Furniture and fixtures
49,204
-
49,204
52,580
Infrastructure
7,709, 651
4,989,907
12,699,558
11,547,181
Construction in progress
316,569
-
316,569
1,556,631
Total assets
20,416,874
7,180,130
27,597,004
27,057,192
Liabilities:
Accounts payable
105,256
51,081
156,337
117,425
Salaries payable
1,988
1,838
3,826
3,162
Contracts payable
25,504
-
25,504
182,284
Due to other governmental units
676
11,537
12,213
36,117
Due to developers
44,733
-
44,733
11,347
Accrued interest payable
3,711
-
3,711
4,726
Compensated absences payable:
Due within one year
14,225
1,847
16,072
19,831
Due in more than one year
157,136
20,408
177,544
162,536
Bonds payable:
Due within one year
190,000
-
190,000
395,000
Due in more than one year
875,000
-
875,000
1,065,000
Total liabilities
1,418,229
86,711
1,504,940
1,997,428
Net assets:
Invested in capital assets, net of related debt
9,928,521
5,985,350
15,913,871
15,706,226
Restricted for:
Debt service
856,611
-
856,611
1,192,681
Unrestricted
8,213,513
1,108,069
9,321,582
8,160,857
Total net assets
$18,998,645
$7,093,419
$26,092,064
$25,059,764
'The accompanying notes are an integral part of these financial statements.
25
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2005
Functions/Programs Expenses
Primary government:
Governmental activities:
General government
$882,800
Public safety
1,210,179
Public works
511,137
Parks and recreation
138,378
Interest on long -term debt
55,695
Total governmental activities
2,798,189
Business -type activities:
Water 373,996
Sanitary sewer 560,876
Storm sewer 34,150
Sanitation 164,572
Total business -type activities 1,133,594
Total primary government $3,931,783
The accompanying notes are an integral part of these financial statements.
Charges For
Services
$148,673
569,227
235,116
22,952
975,968
423,876
705,456
73,546
96,859
1,299,737
$2,275,705
26
Statement 2
The accompanying notes are an integral part of these financial statements.
27
Net (Expense) Revenue and
Program Revenues
Changes in Net Assets
Operating Capital
Primary Government
Grants and Grants and
Governmental
Business -Type
Totals
Contributions Contributions
Activities
Activities
2005
2004
$750 $ -
($733,377)
$ -
($733,377)
($708,286)
86,393 15,000
(539,559)
-
(539,559)
(607,703)
1,086 47,686
(227,249)
-
(227,249)
(44,348)
- -
(115,426)
-
(115,426)
(123,737)
- -
(55,695)
-
(55,695)
(67,365)
88,229 62,686
(1,671,306)
0
(1,671,306)
(1,551,439)
- -
-
49,880
49,880
97,514
- -
-
144,580
144,580
85,521
- -
-
39,396
39,396
29,796
- -
-
(67,713)
(67,713)
(70,349)
0 0
0
166,143
166,143
142,482
$88,229 $62,686
(1,671,306)
166,143
(1,505,163)
(1,408,957)
General revenues:
General property taxes
2,222,335
-
2,222,335
1,979,288
Grants and contributions not
restricted to specific programs
2,040
-
2,040
3,060
Unrestricted investment earnings
258,614
29,268
287,882
218,885
Gain on sale of capital assets
950
-
950
-
Other
24,256
-
24,256
29,125
Transfers
(416,944)
416,944
-
-
Total general revenues and transfers
2,091,251
446,212
2,537,463
2,230,358
Change in net assets
419,945
612,355
1,032,300
821,401
Net assets - beginning
18,578,700
6,481,064
25,059,764
24,238,363
Net assets - ending
$18,998,645
$7,093,419
$26,092,064
$25,059,764
The accompanying notes are an integral part of these financial statements.
27
CITY OF OAK PARK HEIGHTS, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2005
Assets
Cash and investments
Accrued interest receivable
Accounts receivable
Due from other governmental units
Due from developers
Taxes receivable:
Delinquent
Due from County
Special assessments receivable
Total assets
Liabilities and Fund Balances
Liabilities:
Accounts payable
Salaries payable
Contracts payable
Due to other governmental units
Due to developers
Deferred revenue
Total liabilities
Fund balance:
Reserved for debt service
Unreserved:
Designated reported in General Fund
Designated reported in Special Revenue Funds
Designated reported in Capital Project Funds
Undesignated reported in General Fund
Total fiend balance
Total liabilities and fiend balance
$61,207 $ -
1,988 -
676 -
45,063 641,828
108,934
1,817,533
286,210
2,103,743
$2,212,677
Fund balance reported above
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources, and therefore, are not reported in the fiords.
Other long -term assets are not available to pay for current - period expenditures and, therefore, are deferred in the funds
Long -term liabilities, including bonds payable, are not due and
payable in the current period and therefore are not reported in the funds:
Bonds payable
Compensated absences payable
Accrued interest payable
Net assets of governmental activities
The accompanying notes are an integral part of these financial statements.
/:
G.O.
Improvement
Bonds of 1998
Debt Service
General
Fund
$2,035,524
$102,554
36,993
2,522
3,435
-
70,422
-
45,063
-
21,167
-
73
641,828
$2,212,677
$74 6, 9 04
Liabilities and Fund Balances
Liabilities:
Accounts payable
Salaries payable
Contracts payable
Due to other governmental units
Due to developers
Deferred revenue
Total liabilities
Fund balance:
Reserved for debt service
Unreserved:
Designated reported in General Fund
Designated reported in Special Revenue Funds
Designated reported in Capital Project Funds
Undesignated reported in General Fund
Total fiend balance
Total liabilities and fiend balance
$61,207 $ -
1,988 -
676 -
45,063 641,828
108,934
1,817,533
286,210
2,103,743
$2,212,677
Fund balance reported above
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources, and therefore, are not reported in the fiords.
Other long -term assets are not available to pay for current - period expenditures and, therefore, are deferred in the funds
Long -term liabilities, including bonds payable, are not due and
payable in the current period and therefore are not reported in the funds:
Bonds payable
Compensated absences payable
Accrued interest payable
Net assets of governmental activities
The accompanying notes are an integral part of these financial statements.
/:
Statement 3
Renewal
McKean
and
Square
Replacement
Capital
Capital Project
Project
Fund
Fund
AAE - Storm
Sewer
Connection Other
Capital Project Governmental
Fund Funds
Total
Governmental Funds
200 2004
$2,588,891
$ -
$729,933
$2,906,191
$8,363,093
$7,816,131
56,704
-
17,806
60,571
174,596
102,098
-
_
_
-
3,435
33,887
-
-
40,000
-
110,422
41,153
-
6,782
-
-
6,782
6,958
_
_
_
-
45,063
41,632
_
-
21,167
16,640
-
-
18,986
37,908
698,795
910,579
$2,645,595
$6,782
$806,725
$3,004,670
$9,423,353
$8,969,078
$ -
$6,782
$31,940
$5,327
$105,256
$89,894
_
_
_
-
1,988
1,136
-
-
25,504
-
25,504
182,284
_
-
676
1 ,772
-
-
-
44,733
44,733
11,347
-
-
18,986
37,164
743,041
917,442
0
6,782
76,430
87,224
921 ,198
1,203,875
-
-
-
109,707
214,783
454,694
-
1,817,533
1,699,961
-
-
-
75,721
75,721
81,167
2,645,595
-
730,295
2,732,018
6,107,908
5,381,734
_
-
-
-
286,210
147,647
2,645,595
0
730,295
2,917,446
8,502,155
7,765,203
$2,645,595
$6,782
$806,725
$3,004,670
$9,423,353
$8,969,078
$8,502,155
$7,765,203
10,993,521 11,524,715
743,041 917,442
(1,065,000)
(1,460,000)
(171,361)
(163,934)
(3,711)
(4,726)
$18,998,645
$18,578,700
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, 2005
Revenues:
General property taxes
Special assessments
Intergovernmental
Licenses and permits
Charges for services
Fines and forfeits
Earnings on investments
Direct charges to developers
Refunds and reimbursements
Other
Total revenues
General
$2,218,213
101,519
365,512
215,969
69,850
55,431
85,305
4,167
3,115,966
111,061
3,683
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Capital outlay
Debt service:
Principal
Interest
Construction costs
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers from other funds
Transfers to other funds
Total other financing sources (uses)
Net increase (decrease) in fund balance
Fund balance - January 1
Fund balance - December 31
G.O.
Improvement
Bonds of 1998
Debt Service
Fund
114,744
850,933
1 ,160,037
177,751
99,980
21,000
2,309,701
806,265
125,000
47,812
172,812
(58,068)
(550,130)
(550,130)
256,135
1,847,608
$2,103,743
50,000
50,000
(8,068)
113,144
$105,076
The accompanying notes are an integral part of these financial statements.
30
Statement 4
Puma rune
rung
runus
GVVJ
GVV`t
$ _ $ _
$ _
$693 $ -
$2,218,906
$1,969,207
- -
18,986
95,469 -
225,516
305,758
-
_
- -
101,519
70,362
296,997
_
- -
365,512
304,594
- -
14,734
64,143 -
294,846
150,126
-
- -
69,850
78,274
82,821 -
26,006
90,673 -
258,614
199,737
- 132,272
-
6,919 -
139,191
374,241
- -
40,000
100 -
125,405
109,958
- -
-
5,950 -
10,117
20,327
82,821 132,272
99,726
263,947 0
3,809,476
3,582,584
-
-
-
504
-
851,437
793,871
-
-
-
12,766
-
1,172,803
1,119,533
-
-
-
31,097
-
208,848
296,997
_
-
99,980
88,180
-
-
21,000
50,104
-
-
-
270,000
-
395,000
400,000
-
-
-
8,898
-
56,710
68,334
-
132,272
218,721
7,351
-
358,344
622,218
0
132,272
218,721
330,616
0
3,164,122
3,439,237
82,821
0
(118,995)
(66,669)
0
645,354
143,347
155,198
-
-
486,530
(600,130)
91,598
178,923
-
-
(16,000)
(34,000)
600,130
-
(88,500)
155,198
0
(16,000)
452,530
0
91,598
90,423
238,019
0
(134,995)
385,861
0
736,952
233,770
2,407,576
-
865,290
2,531,585
-
7,765,203
7,531,433
$2,645,595
$0
$730,295
$2,917,446
$0
$8,502,155
$7,765,203
The accompanying notes are an integral part of these financial statements.
31
CITY OF OAK PARK HEIGHTS, (MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTALFUNDS
For The Year Ended December 31, 2005
Statement 5
Amounts reported for governmental activities in the
statement of activities are different because:
Net changes in fund balances - total governmental funds (Statement 4)
Governmental finds 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
Capital outlay
Capital contribution
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the fiends:
Change in delinquent taxes
Change in deferred and delinquent special assessments
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
assets. The amount of this difference is:
Principal payments on bonds payable
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
Change in accrued interest payable
Change in net assets of governmental activities (Statement 2)
2005 2004
$736,952 $233,770
(401,999) (410,265)
379,347 672,322
(508,542) (58,706)
3,429 10,081
(177,830) (93,123)
395,000 400,000
(7,427) (4,854)
1,015 969
$419,945 $750,194
The accompanying notes are an integral part of these financial statements.
32
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2005
Statement 6
Current assets:
Cash and cash equivalents
$468,751
$316,162
$105,771
$5,269
$895,953
$699,416
Accrued interest receivable
10,784
7,065
2,179
12
20,040
9,671
Accounts receivable:
10,781
-
-
756
11,537
34,345
Customers
61,614
118,188
12,398
15,520
207,720
150,598
Certified to County
10,404
19,895
2,855
2,424
35,578
33,059
Other
161
22
4
-
187
35
Due from other governmental units
8,943
-
-
-
8,943
-
Prepaid items
-
26,359
-
-
26,359
24,383
Total current assets
560,657
487,691
123,207
23,225
1,194,780
917,162
Noncurrent assets:
3,185,531
2,799,819
-
-
5,985,350
5,646,237
Capital assets:
522,958
477,118
121,747
(13,754)
1,108,069
834,827
Land
60,000
-
-
-
60,000
60,000
Buildings and structures
1,199,304
121,030
-
1,320,334
1,320,334
Machinery and equipment
215,099
4,068
-
-
219,167
213,959
Distribution and collection system
3,168,027
3,854,110
-
7,022,137
6,513,595
Total capital assets
4,642,430
3,979,208
0
0
8,621,638
8,107,888
Less: Allowance for depreciation
(1,456,899)
(1,179,389)
-
-
(2,636,288)
(2,461,651)
Net capital assets
3,185,531
2,799,819
0
0
5,985,350
5,646,237
Total noncurrent assets
3,185,531
2,799,819
0
0
5,985,350
5,646,237
Total assets
3,746,188
3,287,510
123,207
23,225
7,180,130
6,563,399
Liabilities:
Current liabilities:
Accounts payable
13,066
1,612
180
36,223
51,081
27,531
Salaries payable
919
919
-
-
1,838
2,026
Due to other governments
10,781
-
-
756
11,537
34,345
Compensated absences payable - current portion
1,073
668
106
1,847
2,004
Total current liabilities
25,839
3,199
286
36,979
66,303
65,906
Noncurrent liabilities:
Compensated absences payable
11,860
7,374
1,174
-
20,408
16,429
Total liabilities
37,699
10,573
1,460
36,979
86,711
82,335
Net assets:
Invested in capital assets, net of related debt
3,185,531
2,799,819
-
-
5,985,350
5,646,237
Unrestricted
522,958
477,118
121,747
(13,754)
1,108,069
834,827
Total net assets
$3,708,489
$3,276,937
$121,747
($13,754)
$7,093,419
$6,481,064
The accompanying notes are an integral part of these financial statements.
33
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For The Year Ended December 31, 2005
Statement 7
Operating revenue:
Customer billings
Penalties
Plumbing permits
Meter sales
Charges for services
Total operating revenue
Operating expenses:
Personal services
Contractual services
Recycling award
MCES charges
Materials and supplies
Administrative and personnel charges
Depreciation
Total operating expenses
Business -Type Activities
Enterprise Funds
Water Utility Sewer Utility Storm Sewer Sanitation Totals
Fund Fund Utility Fund Utility Fund 2005 2004
$402,912
$693,789
$73,301
$96,577
$1,266,579
$1,089,789
4,943
10,202
245
282
15,672
12,690
-
-
-
-
-
6,195
4,351
-
-
The accompanying notes are an integral
4,351
14,367
11,670
1,465
-
-
13,135
10,197
423,876
705,456
73,546
96,859
1,299,737
1,133,238
161,026
111,012
19,218
-
291,256
230,122
73,411
32,614
8,536
147,120
261,681
278,382
-
-
-
604
604
595
-
292,590
-
-
292,590
267,705
14,662
3,070
936
18
18,686
12,082
25,500
46,350
5,460
16,830
94,140
90,860
99,397
75,240
-
-
174,637
168,996
373,996
560,876
34,150
164,572
1,133,594
1,048,742
Operating income (loss) 49,880 144,580 39,396 (67,713) 166,143 84,496
Nonoperating revenue (expense):
Earnings on investments 15,750 10,318 3,183 17 29,268 19,148
Loss on disposal of capital assets - - - - - (720)
Total nonoperating revenue (expense) 15,750 10,318 3,183 17 29,268 18,428
Income before contributions and transfers 65,630 154,898 42,579 (67,696) 195,411 102,924
Capital contributions 254,271 254,271 - 508,542 58,706
Transfers:
Transfers from other funds - - - 88,500 88,500 88,500
Transfers to other funds (93,850) (82,948) (3,300) - (180,098) (178,923)
Total transfers and capital contributions 160,421 171,323 (3,300) 88,500 416,944 (31,717)
Change in net assets
Net assets - January 1
226,051 326,221 39,279 20,804 612,355 71,207
3,482,438 2,950,716 82,468 (34,558) 6,481,064 6,409,857
Net assets - December 31 $3,708,489 $3,276,937 $121,747 ($13,754) $7,093,419 $6,481,064
Reconciliation of capital contributions and transfer to the Statement of Activities (Statement 2):
34
Capital
Transfers -
Contributions
Net
Amounts reported above
$508,542
$416,944
Amounts reported for business -type activities in the
statement of activities are different because:
Transfer in of capital assets from governmental activities
(508,542)
508,542
Amounts reported on the statement of activities
$0
$925,486
The accompanying notes are an integral
part of these financial statements.
34
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2005
Business -Type Activities
Enterprise Funds
Cash flows from operating activities:
Receipts from customers and users
Payment to suppliers for goods and services
Payment to employees
Miscellaneous revenue
Net cash flows from operating activities
Cash flows from noncapital financing activities
Statement 8
Water Utility
Sewer Utility
Storm Sewer
Sanitation
Totals
Fund
Fund
Utility Fund
Utility Fund
2005
2004
$379,632
$667,231
$70,694
$95,958
$1,213,515
$1,107,203
(66,869)
(362,928)
(8,925)
(136,073)
(574,795)
(522,162)
(184,299)
(155,901)
(24,732)
(16,830)
(381,762)
(337,443)
16,021
1,465
-
-
17,486
24,564
144,485
149,867
37,037
(56,945)
274,444
272,162
Transfer to other funds (93,850) (82,948) (3,300) - (180,098) (178,923)
Transfer from other finds - - - 88,500 88,500 88,500
Net cash flows from noncapital financing activities (93,850) (82,948) (3,300) 88,500 (91,598) (90,423)
Cash flows from capital and related
financing activities:
Acquisition of capital assets (5,208) - - (5,208) (14,993)
Cash flows from investing activities:
Investment income
Net increase in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash flows from operating activities:
Depreciation
Change in assets and liabilities:
Decrease (increase) in receivables
Decrease (increase) in prepaid expenses
Increase (decrease) in payables
Total adjustments
Net cash provided by operating activities
Noncash investing, capital and financing activities:
Contribution of capital asset
10,468
6,488
1,938
5
18,899
9,477
55,895
73,407
35,675
31,560
196,537
176,223
412,856
242,755
70,096
(26,291)
699,416
523,193
$468,751
$316,162
$105,771
$5,269
$895,953
$699,416
$49,880
$144,580
$39,396
($67,713)
$166,143
$84,496
99,397
75,240
-
-
174,637
168,996
(28,223)
(36,760)
(2,852)
(901)
(68,736)
(1,471)
-
(1,976)
-
(1,976)
(2,044)
23,431
(31,217)
493
11,669
4,376
22,185
94,605
5,287
(2,359)
10,768
108,301
187,666
$144,485
$149,867
$37,037
($56,945)
$274,444
$272,162
$254,271
$254,271
$ -
$ -
508,542
$58,706
The accompanying notes are an integral part of these financial statements.
35
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF FIDUCIARY NET ASSETS
AGENCY FUNDS
December 31, 2005
Statement 9
Assets:
Cash and investments
Due from developers
Total assets
Liabilities:
Escrow deposits payable
Accounts payable
Due to developers
Total liabilities
Net assets:
Unrestricted
2005
$339,690
22,111
361,801
257,454
12,420
91,927
361,801
$0
The accompanying notes are an integral part of these financial statements.
2004
$52,752
9,237
61,989
7,000
7,535
47,454
61,989
$0
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Oak Park Heights 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 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 of Oak Park Heights (the primary government) and its component
units, entities 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 UNITS
The HRA of the City of Oak Park Heights is a separate legal entity which is authorized to expend
monies generated by the City's tax increment district. The City council also serve as HRA board
members. Separate financial statements are not prepared for the HRA.
The EDA of the City of Oak Park Heights is a separate legal entity. The EDA board members are
substantially the same as the City council in that four of the five board members are council members
and the fifth board member is the City finance director. Separate financial statements are not prepared
by the EDA.
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
The govermnent -wide financial statements (i.e., the statement of net assets and the statement of
changes in net assets) 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 are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific finction 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.
37
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government -wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns
in the fund financial statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government -wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the Proprietary Fund financial statements. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met. 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 government 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 government.
The City reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another fund.
The G. 0. Improvement Bonds of 1998 Debt Service Fund - $1,990,000 bond issue to fund water,
sewer, storm sewer improvements in the Kern Center and construction of Phase III of 58` Street.
Bonds are to be paid over 15 years.
c
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
The Renewal and Replacement Capital Project Fund is used to account for assets depreciated
from the utility find and water and sanitary sewer departments. Funds are used to renew or
replace water and sanitary sewer system assets.
The McKean Square Capital Project Fund — for construction of 2 °d Phase of Valley Senior
Service Alliance development of an elderly retirement community, town homes and apartments.
Expenditures are paid by developer. No City funds are expended.
The AAE — Storm Sewer Connection Capital Project Fund — was established in 1990 to collect
connection charges for future storm sewer and pond improvements for the area annexed to the
City west of Oakgreen Avenue.
The government reports the following major proprietary fiords:
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.
The Sanitation Fund accounts for assets, liabilities, revenues and expenditures for garbage and
recycling operations.
Additionally, the government reports the following fund type:
Agency Funds account for the assets of various developers held by the City as an agent.
Private - sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the government -wide and proprietary fund financial statements to the
extent that those standards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board. Governments also have the option of following subsequent private -
sector guidance for their business -type activities and enterprise finds, subject to this same limitation.
The government has elected not to follow subsequent private - sector guidance.
As a general rule the effect of interfund activity has been eliminated from the government -wide
financial statements. Exceptions to this general rule are transactions that would be treated as revenues,
expenditures or expenses if they involved external organizations, such as buying goods and services or
payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination
of these charges would distort the direct costs and program revenues reported for the various functions
concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
39
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
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.
When both restricted and unrestricted resources are available for an allowable use, it is the City's
policy to use restricted resources first, then unrestricted resources as they are needed.
1! C a
Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual
appropriated budgets are adopted for the General Fund, but not for Special Revenue Funds. Budgeted
expenditure appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not
employed by the City because it is at present not considered necessary to assure effective budgetary
control or to facilitate effective cash management.
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 find (contingency) reserves or additional
revenues.
Im
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
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.
Investments are stated at fair value, based upon quoted market prices. 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.
41
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
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 the year end are classified as delinquent and due from County taxes receivable.
The portion of delinquent taxes not collected by the City in January are fully offset by deferred
revenue because they are not available to finance current expenditures.
I. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of
special assessment improvement projects in accordance with State Statutes. These assessments are
collectible by the City over a term of years usually consistent with the term of the related bond issue.
Collection of annual installments (including interest) is handled by the County Auditor in the same
manner as property taxes. Property owners are allowed to (and often do) prepay future installments
without interest or prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that
property until fill 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.
42
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
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 fiords are offset by deferred revenues.
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.
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 government as
assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated
useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost
if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the
date of donation.
In the case of the initial capitalization of general infrastructure assets (i.e., those reported by
governmental activities) the government chose to include all such items regardless of their acquisition
date. These assets are reported at historical cost.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business -type activities is included as part of
the capitalized value of the assets constructed. For the year ended December 31, 2005, no interest was
capitalized in connection with construction in progress.
43
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Property, plant and equipment of the primary government, as well as the component units, is
depreciated using the straight line method over the following estimated useful lives:
Buildings and structures
Machinery and equipment
Distribution and collection systems
Streets
Storm sewers
Pathways
M. COMPENSATED ABSENCES
50 years
3 — 20 years
50 years
25 years
50 years
20 years
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay
benefits. All vacation pay and accumulated sick leave benefits that is vested as 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 fiend type statement of net assets.
Bond premiums and discounts, as well as issuance costs, are immaterial and are expensed in the year
of bond issuance.
In the find financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, 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. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
O. FUND EQUITY
In the fund financial statements, governmental funds report reservations of fund balance for amounts
not appropriable for expenditure or legally segregated for a specific future use. Designated fund
balances represent tentative plans for future use of financial resources.
M.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
P. INTERFUND TRANSACTIONS
Interfimd services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fiord 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 interfumd loan receivable or payable which offsets the movement of cash between
funds. All other interfund transactions are reported as transfers.
Q. 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.
R. UTILITY FUNDS
Prior to 2005, the City had reported all of its utility operations in one Enterprise Fund, which was the
Utility Fund. As of January 1, 2005 the Utility Fund was split into four Enterprise Funds, which
include the Water Utility Fund, Sewer Utility Fund, Storm Sewer Utility Fund and Sanitation Fund.
Note 2 DEPOSITS AND INVESTMENTS
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks
authorized by the City Council, all of which are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral.
The market value of collateral pledged must equal 110% of the deposits not covered by insurance or
bonds.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City
Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral
includes the following:
a) United States government treasury bills, treasury notes, treasury bonds;
b) Issues of United States government agencies and instrumentalities as quoted by a recognized
industry quotation service available to the government entity;
45
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
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, 2005 the carrying amount of the City's deposits with financial institutions was
$8,289,998. Of these deposits, $69,188 were uncollateralized.
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.
I) 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.
IN
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
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, 2005 the City had the following investments and maturities:
Investment Maturities (in Years)
Fair
Less
Investment Type
Value
Than 1 1 -5
6 -10
Federal National Mortgage Assn. Notes
$200,000
$ - $200,000
$
Federal Home Loan Mortgage Corp. Notes
642,686
- 100,000
542,686
Federal Home Loan Bank Notes
196,253
- -
196,253
External investment pool - 4M Fund
269,699
269,699 -
-
Total
$1,308,638
$269,699 $300,000
$738,939
Total investments
$1,308,638
Deposits
8,289,998
Petty cash
100
Total cash and investments
$9,598,736
Following is a reconciliation of the City's cash and investment balances as of December 31, 2005:
Government -wide statement of net assets $9,259,046
Fiduciary funds statement of net assets 339,690
$9,598,736
C. INVESTMENT RISKS
The City's investment policy is to follow Minnesota State Statutes as described above which reduces
the City's exposure to credit, custodial credit, and interest rate risks. Specific risk information for the
City is as follows:
Interest rate risk — 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 — As of December 31, 2005, the City's investments in the FNMA, FHLMC, and FHLB
Notes were all rated AAA by Standard & Poor's, and Aaa by Moody's Investors Service. The City's
external investment pool investment is with the 4M fund which is regulated by Minnesota Statutes and
47
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
the Board of Directors of the League of Minnesota Cities. The 4M fund is an unrated 2a7 -like pool
and the fair value of the position in the pool is the same as the value of pool shares.
Concentration of credit risk — The City places no limit on the amount the City may invest in any one
issuer. More than 5% of the City's investments are with the Federal Home Loan Mortgage
Corporation. These investments are 6.6% of the City's total cash and investments.
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2005 are as
follows:
Major Funds
G.O Improvement
Bonds of
General 1998
Special assessments receivable $ -
Delinquent property taxes 19,312
Nonmaj or
Funds Total
$566,263 $6,773 $573,036
- - 19,312
Total $19,312 $566,263 $6,773 $592,348
Governmental funds report deferred revenue in connection with receivables for revenues that are not considered
to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition
in connection with resources that have been received, but not yet earned. At the end of the current fiscal year,
the various components of deferred revenue and unearned revenue reported in the governmental funds were as
follows:
Delinquent property taxes receivable (General Fund)
Special assessments receivable (Nonmajor Funds)
Special assessments receivable (G.O. Improvement Bonds of 1998 Fund)
Special assessments receivable (AAE - Storm Sewer Connection Fund)
Total deferred /unearned revenue for governmental funds
in
Unavailable Unearned
$45,063 $ -
37,164 -
641,828 -
18,986 -
$743,041 $0
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Note 4 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2005 was as follows:
Capital assets, being depreciated
Buildings and structures
Beginning
1,118,146
Other improvements
Ending
560,963
Balance
Increases
Decreases
Balance
139,921 -
139,921
Governmental activities:
10,144,234 1,089,866
- 11,234,100
Total capital assets, being depreciated
12,369,324 1,110,866
Capital assets, not being depreciated:
90,717
Infrastructure
3,208,698
Land
$1,615,115
$1
$ -
$1,615,116
Construction in progress
1,556,631
358,345
(1,598,407)
316,569
Total capital assets, not being depreciated
3,171,746
358,346
(1,598,407)
1,931,685
Capital assets, being depreciated
Buildings and structures
1,118,146
1,118,146
Other improvements
560,963 -
560,963
Machinery and equipment
406,060 21,000
(17,383) 409,677
Furniture and fixtures
139,921 -
139,921
Infrastructure
10,144,234 1,089,866
- 11,234,100
Total capital assets, being depreciated
12,369,324 1,110,866
(17,383) 13,462,807
Less accumulated depreciation for
Buildings and structures
374,650
24,656
399,306
Other improvements
126,568
5,425
131,993
Machinery and equipment
224,955
46,934
(17,383)
254,506
Furniture and fixtures
81,484
9,233
90,717
Infrastructure
3,208,698
315,751
3,524,449
Total accumulated depreciation
4,016,355
401,999
(17,383)
4,400,971
Total capital assets being depreciated - net
8,352,969
708,867
0
9,061,836
Governmental activities capital assets - net
$11,524,715
$1,067,213
($1,598,407)
$10,993,521
Es
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Beginning
Balance
Business -type activities:
Capital assets, not being depreciated:
Land
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings and structures
Machinery and equipment
Distribution and collection systems
Total capital assets, being depreciated
Less accumulated depreciation:
Buildings and structures
Machinery and equipment
Distribution and collection systems
Less accumulated depreciation
Total capital assets being depreciated - net
Business -type activities capital assets - net
$60,000
60,000
Increases Decreases
0
1,320,334 -
213,959 5,208
6,513,595 508,542
8,047,888 513,750
Ending
Balance
$ $60,000
0 60,000
1,320,334
219,167
7,022,137
0 8,561,638
462,764
29,858
492,622
96,937
14,499
111,436
1,901,950
130,280
2,032,230
2,461,651
174,637
0 2,636,288
5,586,237
339,113
0 5,925,350
$5,646,237
$339,113
$0 $5,985,350
Depreciation expense was charged to functions /programs of the primary government as follows:
Governmental activities:
General government $29,986
Public safety 31,671
Public works 302,757
Recreation 37,585
Total depreciation expense - governmental activities $401,999
Business -type activities:
Water
Sewer
Total depreciation expense - business -type activities
$99,397
75,240
$174,637
50
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Note 5 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, 2005, the long -term debt of the financial reporting entity consisted of the following:
Governmental Activities:
General obligation bonds:
G.O. Refunding Bonds of 2002
Improvement bonds:
G.O. Improvement Bonds of 1998
G.O. Refunding Bonds of 2001
Compensated absences payable
Total governmental activities
Business -Type Activities:
Compensated absences payable
Total City indebtedness
Annual debt service requirements to maturity for long -term debt are as follows:
171,361
1,236,361
22,255
$1,258,616
Year General Obligation Bonds G.O. Improvement Bonds
Ending Governmen Activities Governmental A ctivities
December 31, Principal
Interest Principal Interest
2006
Final
$42,813
Authorized
- - 125,000
Issue
Maturity
Interest
And
Outstanding
Date
Date
Rate
Issued
12/31/05
2011
- - 125,000
16,562
2012
- - 125,000
11/01/02
12/01/06
2.25 -2.65
$510,000
$65,000
10/01/98
12/01/13
4.00 -4.50
1,990,000
1,000,000
11/01/01
12/01/05
3.25
490,000
-
Interest Principal Interest
2006
$65,000 $1,722 $125,000
$42,813
2007
- - 125,000
37,687
2008
- - 125,000
32,500
2009
- - 125,000
27,250
2010
- - 125,000
21,938
2011
- - 125,000
16,562
2012
- - 125,000
11,125
2013
- - 125,000
5,625
Total
$65,000 $1,722 $1,000,000
$195,500
It is not practicable to determine the specific year for payment of accrued compensated absences.
51
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Chanu in Long -Term Liabilities
Long -term liability activity for the year ended December 31, 2005, was as follows:
For the governmental activities, compensated absences are generally liquidated by the General Fund. All
long -term bonded indebtedness outstanding at December 31, 2005 is backed by the full faith and credit of
the City, including improvement bond issues. Delinquent assessments receivable at December 31, 2005
were $4,781.
52
Balance
Balance
Due Within
01101105
Additions
Reductions
12/31/05
One Year
Governmental Activities:
Bonded debt:
General obligation
$225,000
$
$160,000
$65,000
$65,000
Improvement bonds
1,235,000
235,000
1,000,000
125,000
Compensated absences
163,934
67,028
59,601
171,361
14,225
Total governmental activities
$1,623,934
$67,028
$454,601
$1,236,361
$204,225
Business -Type Activities:
Compensated absences
$18,433
$9,313
$5,491
$22,255
$1,847
Total business -type activities
$18,433
$9,313
$5,491
$22,255
$1,847
For the governmental activities, compensated absences are generally liquidated by the General Fund. All
long -term bonded indebtedness outstanding at December 31, 2005 is backed by the full faith and credit of
the City, including improvement bond issues. Delinquent assessments receivable at December 31, 2005
were $4,781.
52
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Note 6 LEGAL DEBT MARGIN
The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable
principally from property taxes. The City's legal debt margin for 2005 is computed as follows:
Market value
Debt limit percentage
Debt limit
Amount of debt applicable to debt limit:
Total bonded debt
Less:
Non applicable debt:
Revenue bonds
Improvement bonds
Total amount of debt applicable to debt limit
Legal debt margin
Note 7 PENSION PLANS
A. PERA DEFINED BENEFIT PLAN
PLAN DESCRIPTION
December 31,
2005
$485,026,700
2.00%
9,700,534
1,065,000
(65,000)
(1,000,000)
0
$9,700,534
All full -time and certain part -time employees of the City are covered by defined benefit plans administered
by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public
Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF) which are
cost - sharing, multiple- employer retirement plans. These plans are established and administered in
accordance with Minnesota Statute, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. All new members must participate in the
Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by
statute are covered by the PEPFF.
53
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by State Statute, and vest after three years of
credited service. The defined retirement benefits are based on a member's highest average salary for any
five successive years of allowable service, age, and years of credit at termination of service.
The benefit provisions stated in the previous 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.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for PERF and PEPFF. That report may be obtained on the internet at
www.mnpera.org by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103 -2088 or by
calling (651)296 -7460 or 1- 800 - 652 -9026.
FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These
statutes are established and amended by the state legislature. The City makes annual contributions to
the pension plans equal to the amount required by state statutes. PERF Basic Plan members and
Coordinated Plan members were required to contribute 9.10% and 5.10 %, respectively, of their annual
covered salary in 2005. Contribution rates in the Coordinated Plan will increase in 2006 to 5.5 %.
PEPFF members were required to contribute 6.20% of their annual covered salary in 2005. That rate
will increase to 7.0% in 2006. The City is required to contribute the following percentages of annual
covered payroll: 11.78% for Basic Plan PERF members, 5.53% for Coordinated Plan PERF members,
and 9.30% for PEPFF members. Employer contribution rates for the Coordinated Plan and PEPFF
will increase to 6.0% and 10.5% respectively, effective January 1, 2006. The City's contributions to
the Public Employees Retirement Fund for the years ending December 31, 2005, 2004 and 2003 were
$33,500, $31,632 and $31,701, respectively. The City's contributions to the Public Employees Police
and Fire Fund for the years ending December 31, 2005, 2004 and 2003 were $60,723, $58,277 and
$55,917, respectively. The City's contributions were equal to the contractually required contributions
for each year as set by state statute.
B. DEFINED CONTRIBUTION PLAN
The City administrator does not participate in PERA, but is covered by a defined contribution plan
administered by the ICMA Retirement Corporation. The Plan is a tax qualified plan under Section 457
of the Internal Revenue Code and all contributions by or on behalf of the employee are tax deferred
until time of withdrawal.
The City is required to contribute 10% of the annual base salary. Plan provisions and contribution
requirements are established and may be amended by the City council. Employer contributions were
$8,695 for the year ended December 31, 2005.
0
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Note 8 INTERFUND TRANSFERS
Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from services
provided by another fund. With the exception of Renewal and Replacement, all of the City's interfund
transfers fall under that category. The transfer to Renewal and Replacement allows the City to accumulate
resources to be used for improvements. All of the 2005 transfers are considered routine and consistent with
previous practices.
Note 9 CONTINGENCIES
A. LITIGATION
The City attorney has indicated there are no existing and pending lawsuits, claims and other actions in
which the City is a defendant.
B. FEDERAL AND STATE FUNDS
The City receives financial assistance from federal and state governmental agencies in the form of
grants. The disbursement of funds received under these programs generally requires compliance with
the terms and conditions specified in the grant agreements and is 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, 2005.
55
Transfer In
Major Business -
Major Funds
Type Fund
G.O. Improvement
Nonmajor
Sanitation
Bonds of
Renewal and
Governmental
Utility
1998 Fund
Replacement Fund
Funds
Fund
Total
Transfer out:
Governmental Activities:
General Fund
$
$ -
$461,630
$88,500
$550,130
AAE - Storm Sewer Connection Fund
16,000
-
-
16,000
Nonmajor Governmental Funds
34,000
-
-
34,000
Business -Type Activities:
Water Utility Fund
-
83,050
10,800
93,850
Sewer Utility Fund
72,148
10,800
82,948
Storm Sewer Utility Fund
-
-
3,300
-
3,300
Total transfers
$50,000
$155,198
$486,530
$88,500
$780,228
Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from services
provided by another fund. With the exception of Renewal and Replacement, all of the City's interfund
transfers fall under that category. The transfer to Renewal and Replacement allows the City to accumulate
resources to be used for improvements. All of the 2005 transfers are considered routine and consistent with
previous practices.
Note 9 CONTINGENCIES
A. LITIGATION
The City attorney has indicated there are no existing and pending lawsuits, claims and other actions in
which the City is a defendant.
B. FEDERAL AND STATE FUNDS
The City receives financial assistance from federal and state governmental agencies in the form of
grants. The disbursement of funds received under these programs generally requires compliance with
the terms and conditions specified in the grant agreements and is 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, 2005.
55
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Note 10 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; and natural disasters.
Workers compensation coverage is provided through a pooled self - insurance program through the League of
Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject
to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers
Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is
not subject to a deductible. The City's workers compensation coverage is retrospectively rated. With this type
of coverage, final premiums are determined after loss experience is known. The amount of premium
adjustment, if any, is considered immaterial and not recorded until received or paid.
Property and casualty insurance coverage is provided through a pooled self - insurance program through the
LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if
deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess
various amounts. The City retains risk for deductible portions. These deductibles are considered immaterial to
the financial statements.
Employee health and disability insurance is provided through commercial insurance. The City does not have a
deductible or yearly maximum on this insurance.
There were no significant reductions in insurance from the previous year or settlements in excess of insurance
coverage for any of the past three fiscal years.
M1
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Note 11 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY
At December 31, 2005 the City had designated and reserved portions of its various fund equities through legal
restriction and City Council authorization. Major fund equity appropriations at December 31, 2005 are shown
on the various balance sheets as segregations of the fund equity. A summary of such reservations and
designations is as follows:
December 31,
2005
Governmental Funds:
Major Funds:
General Fund:
Designated for cash flow
Designated for contingent employee benefit
Designated for general contingency
G.O. Improvement Bonds of 1998:
Reserved for debt service
Renewal and Replacement Fund:
Designated for capital improvements
AAE -Storm Sewer Connection Fund:
Designated for capital improvements
Designated for committed contracts
Nonmajor Funds:
Reserved for debt service
Designated for special revenue programs
Designated for capital improvements
Totals
Note 12 MAJOR TAXPAYER
$1,237,000
141,533
439,000
105,076
2,645,595
713,755
16,540
109,707
75,721
2,732,018
$8,215,945
The City has one major taxpayer, Xcel Energy. The total tax capacity value for this taxpayer represented
approximately 23% of the City's total tax capacity value for taxes payable in 2005.
57
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Note 13 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, 2005, there were five series of Industrial Revenue Bonds outstanding. The principal
amount payable at December 31, 2005 could not be determined; however, their original issue amounts totaled
$44,985,000.
Note 14 COMMITMENTS
Construction commitments at December 31, 2005 were composed of the following:
Description
Contract
Authorized
Expended Remaining
as of Contract
12/31/05 Commitment
Kern Center Pond Expansion $259,166 $242,626 $16,540
59
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2005
Statement 10
Page 1 of 4
Budgeted Amounts
Original Final
Revenue:
General property taxes:
Current and delinquent
Payment in lieu of taxes
Total general property taxes
Intergovernmental:
Federal:
Safe and sober
Operation nightcap
Releaf grant
State:
Police aid
Police training aid
PERA rate increase aid
Emergency vehicle preemption grant
County:
Recycling grant
Gravel tax allocation
Total intergovernmental
Licenses and permits
Charges for services:
General government
Inspections - City of Bayport
Administrative - Enterprise Fund
Total charges for services
Fines and forfeits
Earnings on investments
Refunds and reimbursements
Donations and contributions
Sale of property
Total revenue
$2,205,325
15,000
2,220,325
20,500
57,600
2,040
$2,205,325
15,000
2,220,325
Expenditures:
General government:
Mayor and council:
Current:
Personal services
Materials and supplies
Contractual services
Total mayor and council
20,500
57,600
2,040
15,000
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$2,198,452
($6,873)
1 9,761
4,761
2,218,213
(2,112)
21,500 1,000
796 796
440 440
58,277 677
2,820 2,820
2,040 -
15,000 -
13,538
13,538 -
(13,538)
700
700 646
(54)
94,378
109,378 101,519
(7,859)
172,355
197,605 365,512
167,907
10,000
42,480
94,140
146,620
66,000
31,000
62,600
10,000
42,480
94,140
37,110
84,719
94,140
27,110
42,239
OV,S4V
3,850
24,431
19,520
500
1,167
276,753
146,620
66,000
31,000
65,785
2,500
G,IY�,GIb G,2S�
215,969
69,850
55,431
85,305
3,000
1,167
3,115,966
56,990
56,990
38,920
800
800
548
24,450
24,450
12,532
82,240
82,240
52,000
•1
18,070
252
11,918
30,240
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2005
Expenditures: (continued)
General government: (continued)
City administration:
Current:
Personal services
Materials and supplies
Contractual services
Total City administration
Budgeted Amounts
Original Final
Statement 10
Page 2 of 4
Variance with
Final Budget -
Actual Positive
Amounts (Negative)
$172,125
$172,125
$177,420
($5,295)
3,950
3,950
2,057
1,893
9,600
9,600
12,504
(2,904)
185,675
185,675
191,981
(6,306)
Legal:
-
2,642
(2,642)
-
Current:
302
(302)
340
340
Personal services
30,000
30,000
17,447
12,553
General management and building:
158,905
158,905
Current:
(1,900)
3,375
3,375
1,607
Materials and supplies
7,600
7,600
5,178
2,422
Contractual services
66,000
66,000
59,481
6,519
Total general management and building
73,600
73,600
64,659
8,941
Elections:
Current:
Personal services
Materials and supplies
Contractual services
Total elections
Finance:
Current:
Personal services
Materials and supplies
Contractual services
Total finance
Computer system:
Current:
Materials and supplies
Contractual services
Total computer system
Audit:
Current:
Personal services
Insurance:
Current:
Contractual services
Assessing:
Current:
Personal services
-
-
2,642
(2,642)
-
-
302
(302)
340
340
340
-
340
340
3,284
(2,944)
158,905
158,905
160,805
(1,900)
3,375
3,375
1,607
1,768
3,700
3,700
1,854
1,846
165,980
165,980
164,266
1,714
1,500
1,500
5,272
(3,772)
19,500
19,500
12,050
7,450
21,000
21,000
17,322
3,678
15,000
15,000
10,742
4,258
262,025
262,025
271,820
(9,795)
19,100
19,100
18,126
974
61
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2005
Statement 10
Page 3 of 4
Budgeted Amounts Actual
Original Final Amounts
Expenditures: (continued)
General government: (continued)
Planning and zoning:
Current:
Personal services
Materials and supplies
Contractual services
Total planning and zoning
Engineering:
Current:
Personal services
General contingency:
Current:
Contractual services
Total general government
Public safety:
Police department:
Current:
Personal services
Materials and supplies
Contractual services
Total police department
Building inspections:
Current:
Personal services
Materials and supplies
Contractual services
Total building inspections
Fire protection:
Current:
Materials and supplies
Contractual services
Total fire protection
Civil defense:
Current:
Contractual services
Animal control:
Current:
Materials and supplies
Contractual services
Total animal control
General public safety:
Capital outlay
Total public safety
Variance with
Final Budget -
Positive
(Negative)
$56,750
$56,750
$25,141
$31,609
100
100
-
100
1,950
1,950
1,650
300
58,800
58,800
26,791
32,009
27,000
27,000
5,843
21,157
1,496
10,000
10,000
6,652
3,348
7,250
7,250
950,760
950,760
850,933
99,827
786,025
789,210
768,673
20,537
32,750
32,750
32,507
243
106,825
106,325
95,579
10,746
925,600
928,285
896,759
31,526
109,425
134,675
133,179
1,496
3,000
3,000
2,472
528
7,250
7,250
6,805
445
119,675
144,925
142,456
2,469
2,000
2,000
2,000
-
120,490
120,490
117,990
2,500
122,490
122,490
119,990
2,500
5,150
5,150
94
5,056
150
150
79
71
1,750
1,750
659
1,091
1,900
1,900
738
1,162
-
21,000
21,000
-
1 inn oic
1 �)2 '71Zn
1 101 111217
n) '7 1'2
62
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2005
Statement 10
Page 4 of 4
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Expenditures: (continued) Original Final Amounts (Negative)
Public works:
Street maintenance:
Current:
Personal services
Materials and supplies
Contractual services
Total street maintenance
Snow removal:
Current:
Materials and supplies
Contractual services
Total snow removal
Street lighting:
Current:
Contractual services
Arborst:
Current:
Personal services
Materials and supplies
Contractual services
Total arborist
Tree removal and planting:
Current:
Contractual services
Total public works
Parks and recreation:
Parks, playgrounds and rinks:
Current:
Personal services
Materials and supplies
Contractual services
Total parks and recreation
Total expenditures
Revenue over expenditures
Other financing sources (uses):
Transfers to Debt Service Fund
Transfers to Capital Project Fund
Transfers to Enterprise Fund
Total other financing sources (uses)
Net increase (decrease) in fund balance
Fund balance - January 1
Fund balance - December 31
$18,170
$18,170
$18,152
$18
6,070
6,070
2,836
3,234
16,110
16,110
13,745
2,365
40,350
40,350
34,733
5,617
2,452,395
2,501,330
2,309,701
1,500
1,500
256
1,244
85,600
85,600
63,220
22,380
87,100
87,100
63,476
23,624
(261,990)
(88,500)
52,000
52,000
49,492
2,508
(340,880)
(550,130)
(209,250)
15,125
10,360
10,283
77
150
150
-
150
155
155
192
(37)
15,430
10,665
10,475
190
15,000
19,765
19,575
190
209,880
209,880
177,751
32,129
51,065
51,065
42,473
8,592
6,700
6,700
7,864
(1,164)
59,175
59,175
49,643
9,532
116,940
116,940
99,980
16,960
2,452,395
2,501,330
2,309,701
191,629
340,883
337,883
806,265
468,382
(61,380)
(61,380)
(8,640)
52,740
(191,000)
(191,000)
(452,990)
(261,990)
(88,500)
(88,500)
(88,500)
-
(340,880)
(340,880)
(550,130)
(209,250)
$3
($2,997)
256,135
$259,132
1,847,608
$2,103,743
63
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RS1
December 31, 2005
Note A LEGAL COMPLIANCE — BUDGETS
The General Fond 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.
E
MGM H ION Ilklutalkil 12 101
65
- This page intentionally left blank -
••
67
CITY OF OAK PARK HEIGHTS, MINNESOTA
$ - $ - $5,327
$5,327
$4,430
Contracts payable
COMBINING BALANCE SHEET
-
70,739
Due to developers
Statement 11
NONMAJOR GOVERNMENTAL FUNDS
-
Deferred revenue
- - 37,164
37,164
December 31, 2005
Total liabilities
0 0 87,224
87,224
204,013
With Comparative Totals For December 31, 2004
Total
Nonmajor
Special
Debt
Capital
Governmental Funds
Assets
Revenue
Service
Project
2005 2004
Cash and investments
$73,925
$104,222
$2,728,044
$2,906,191 $2,558,709
Accrued interest receivable
1,796
5,485
53,290
60,571 36,512
Accounts receivable
-
-
-
- 3,442
Due from developers
-
-
-
- 6,958
Taxes receivable:
Delinquent
-
-
-
- 1,273
Due from County
-
-
-
- 485
Special assessments receivable
-
-
37,908
37,908 128,219
Total assets
$75,721
$109,707
$2,819,242
$3,004,670 $2,735,598
Liabilities and Fund Balance
Liabilities:
Accounts payable
$ - $ - $5,327
$5,327
$4,430
Contracts payable
- - -
-
70,739
Due to developers
- - 44,733
44,733
-
Deferred revenue
- - 37,164
37,164
128,844
Total liabilities
0 0 87,224
87,224
204,013
Fund balance:
Reserved
- 109,707 - 109,707
341,550
Unreserved:
Designated
75,721 - 2,732,018 2,807,739
2,190,035
Total fund balance
75,721 109,707 2,732,018 2,917,446
2,531,585
Total liabilities and fund balance
$75,721 $109,707 $2,819,242 $3,004,670
$2,735,598
is
Revenues:
General property taxes
Special assessments
Earnings on investments
Charges for services
Direct charges to developers
Refunds and reimbursements
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Capital outlay
Debt service:
Principal
Interest
Construction costs
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers from other funds
Transfers to other funds
Total other financing sources (uses)
Net increase (decrease) in fund balance
Fund balance - January 1
Fund balance - December 31
504
-
-
Total Nonmajor
Special
Debt
Capital
Governmental Funds
Revenue
Service
Project
2005 2004
$ -
$693
$ -
$693 $58,359
-
27,508
67,961
95,469 171,560
2,624
10,214
77,835
90,673 69,529
-
-
64,143
64,143 -
-
-
6,919
6,919 16,738
-
-
100
100 21,098
5,200
-
750
5,950 18,569
7,824
38,415
217,708
263,947 355,853
504
-
-
504
468
12,766
-
-
12,766
9,724
-
-
31,097
31,097
126,554
-
-
-
-
34,226
-
270,000
-
270,000
275,000
-
8,898
-
8,898
15,647
-
-
7,351
7,351
172,134
13,270
278,898
38,448
330,616
633,753
(5,446)
(240,483)
179,260
(66,669)
(277,900)
-
8,640
477,890
486,530
304,700
-
-
(34,000)
(34,000)
(92,400)
0
8,640
443,890
452,530
212,300
(5,446)
(231,843)
623,150
385,861
(65,600)
81,167
341,550
2,108,868
2,531,585
2,597,185
$75,721
$109,707
$2,732,018
$2,917,446
$2,531,585
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2005
With Comparative Totals For December 31, 2004
Statement 13
Assets
Cash and investments
Accrued interest receivable
Total assets
Liabilities and Fund Balance
Liabilities
Fund balance:
Unreserved:
Designated for special revenue programs
Total liabilities and fund balance
Forfeiture
and Economic
Seizure Development
$21,543 $52,382
576 1,220
$22,119 $53,602
Total
Nonmajor
Special Revenue Funds
2005 2004
$73,925 $79,976
1,796 1,191
$75,721 $81,167
22,119
53,602
75,721
81,167
$22,119
$53,602
$75,721
$81,167
70
Revenue:
Earnings on investments
Refunds and reimbursements
Confiscated property
Total revenue
Expenditures:
General government:
Current:
Contractual services
Public safety:
Current:
Materials and supplies
Contractual services
Capital outlay
Total expenditures
Revenue over (under) expenditures
Fund balance - January 1
Fund balance - December 31
Forfeiture
and Economic
Seizure Development
$842 $1,782
5,200 -
6,042 1,782
504
6,448 -
6,318 -
Total
Nonmajor
Special Revenue Funds
2005 2004
$2,624
5,200
7,824
6.711 !
6,448
6,318
$2,358
556
9,999
12,913
468
9,208
516
5,538
12,766
504
13,270
15,730
(6,724)
1,278
(5,446)
(2,817)
28,843
52,324
81,167
83,984
$22,119
$53,602
$75,721
$81,167
71
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
Statement 15
NONMAJOR DEBT SERVICE FUNDS - G.O. REFUNDING BONDS OF 2002
December 31, 2005
With Comparative Amounts For December 31, 2004
Nonmajor
Debt Service Funds
2005 2004
Assets
Cash and investments
$104,222 $333,986
Accrued interest receivable
5,485 6,431
Taxes receivable:
Delinquent
- 1,273
Due from County
- 485
Special assessments:
Delinquent
- 311
Deferred
- 26,139
Due from County
- 648
Total assets
Liabilities and Fund Balance
Liabilities:
Deferred revenue
Fund balance:
Reserved for debt service
Total liabilities and fiind balance
$109,707 $369,273
$27,723
109,707 341,550
$109,707 $369,273
72
Revenue:
General property taxes:
Current and delinquent
Special assessments:
Current and delinquent
Prepayments
Penalties and interest
Earnings on investments
Total revenue
Expenditures:
Debt service:
Principal
Interest
Total expenditures
Revenue over (under) expenditures
Other financing sources:
Transfer from General Fund
Transfer from Capital Project Fund
Total other financing sources
Net increase (decrease) in fund balance
Fund balance - January 1
Fund balance - December 31
G.O.
Refunding
Bonds
of 2002
G.O
Refunding
Bonds
of 2001
Total
Nonmajor
Debt Service Funds
2005 2004
$ - $693
$693
$58,359
- 27,445
27,445
31,654
- -
-
1,587
- 63
63
197
8,012 2,202
10,214
12,733
8,012 30,403
38,415
104,530
160,000
110,000
270,000
275,000
5,323
3,575
8,898
15,647
165,323
113,575
278,898
290,647
(157,311)
(83,172)
(240,483)
(186,117)
8,640
0 8,640
(157,311) (74,532)
(231,843) (131,117)
267,018
74,532
341,550
472,667
$109,707
$0
$109,707
$341,550
73
8,640 -
- 55,000
8,640 55,000
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2005
With Comparative Totals For December 31, 2004
74
401
Budgeted
500
Projects
Capital
and
405
565
Revolving
Equipment
Park
Street
Fund
Revolving
Development
Reconstruction
Assets
Cash and investments
$448,551
$722,541
$350,714
$500,566
Accrued interest receivable
9,147
10,678
8,005
10,260
Accounts receivable
-
-
-
-
Due from developers
-
-
-
-
Special assessments receivable:
Deferred
13,545
-
-
-
Due from County
744
-
-
-
Total assets
$471,987
$733,219
$358,719
$510,826
Liabilities and Fund Balance
Liabilities:
Accounts payable
$60
$ -
$ -
$ -
Contracts payable
-
-
-
Due to developers
-
-
-
-
Deferred revenue
13,545
-
-
-
Total liabilities
13,605
0
0
0
Fund balance:
Unreserved:
Designated for capital improvement
458,382
733,219
358,719
510,826
Total liabilities and fund balance
$471,987
$733,219
$358,719
$510,826
74
Statement 17
$5,267 $ - $ - $5,327 $4,430
- - - - 70,739
44,733 - - 44,733 -
- 8,618 15,001 37,164 101,121
0 0 50,000 8,618 15,001 87,224 176,290
237
31,942
732
241,754
2,732,018
2,108,868
$237
406
711
Novak Avenue
771
$2,285,158
Totals
Brekke
Water
Street and
Sanitary
772
Nonmajor
Park
Tower
Utility
Sewer
Water
Capital Project Funds
Memorial
Rental
Improvements
Connection
Connection
2005
2004
$232
$31,443
$50,000
$387,604
$236,393
$2,728,044
$2,144,747
5
499
-
9,335
5,361
53,290
28,890
-
-
_
_
-
-
3,442
-
-
-
-
-
-
6,958
-
-
-
8,618
15,001
37,164
-
-
-
-
-
-
744
101,121
$2
$31,942
$50,000
$405,557
$256,755
$2,819,242
$2,285,158
$5,267 $ - $ - $5,327 $4,430
- - - - 70,739
44,733 - - 44,733 -
- 8,618 15,001 37,164 101,121
0 0 50,000 8,618 15,001 87,224 176,290
237
31,942
- 396,939
241,754
2,732,018
2,108,868
$237
$31,942
$50,000 $405,557
$256,755
$2,819,242
$2,285,158
75
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, 2005
With Comparative Totals For The Year Ended December 31, 2004
Expenditures:
401
Public works:
Budgeted
Materials and supplies
500
Projects
-
-
406
Contractual services
Capital
and
405
565
Brekke
Capital outlay
Revolving
Equipment
Park
Street
Park
Construction costs
Fund
Revolving
Development
Reconstruction
Memorial
Revenue:
17,139
4,456
0
9,934
0
Special assessments
$44,342
$ -
$ -
$ -
$ -
Earnings on investments
13,359
15,596
11,692
14,986
8
Connection charges
-
-
-
-
-
Direct charges to developers
-
-
-
24,900
-
Refunds and reimbursements
-
100
-
-
-
Park dedication fees
-
-
22,952
-
-
Donations and contributions
-
750
-
-
-
Rents
-
-
-
-
-
Total revenue
57,701
16,446
34,644
14,986
8
Expenditures:
Public works:
Materials and supplies
35
-
-
-
-
Contractual services
15,020
4,456
-
9,934
-
Capital outlay
-
-
-
-
-
Construction costs
2,084
-
-
-
-
Total expenditures
17,139
4,456
0
9,934
0
Revenue over (under) expenditures
40,562
11,990
34,644
5,052
8
Other financing sources (uses):
Transfers from General Fund
52,740
300,250
-
100,000
-
Transfers from Enterprise Fund
-
24,900
-
-
-
Transfers to Debt Service Fund
-
-
-
-
-
Total other financing sources (uses)
52,740
325,150
0
100,000
0
Net increase in fund balance
93,302
337,140
34,644
105,052
8
Fund balance - January 1
365,080
396,079
324,075
405,774
229
Fund balance - December 31
$458,382
$733,219
$358,719
$510,826
$237
76
Statement 18
-
- - - -
-
732
224,800
-
- - - -
-
711
24,900
730
Novak Avenue
771
(34,000)
Totals
0
Water
729
Oak Park
Street and
Sanitary
772
Nonmajor
Tower
Boutwells
Station
Utility
Sewer
Water
Capital Project Funds
Rental
Landing
Phase I
Improvements
Connection
Connection
2005
2004
$31,942
$0 $0 $0 $396,939
$241,754
$2,732,018
$2,108,868
$8,618
$15,001
$67,961
$138,122
728
-
-
-
13,635
7,831
77,835
54,438
-
-
-
-
6,689
11,637
18,326
-
-
208
1,444
5,267
-
-
6,919
16,738
-
-
-
-
-
-
100
20,542
-
-
-
-
-
-
22,952
-
-
-
-
-
-
-
750
250
22,865
-
-
-
-
-
22,865
8,320
23,593
208
1
5,267
28,942
34,469
217,708
238,410
-
- - - -
-
452,990
224,800
-
- - - -
-
24,900
24,900
-
- - - (25,250)
(8,750)
(34,000)
(92,400)
0
0 0 0 (25,250)
(8,750)
443,890
157,300
23,593
0 0 0 3,692
25,719
623,150
68,334
8,349
- - - 393,247
216,035
2,108,868
2,040,534
$31,942
$0 $0 $0 $396,939
$241,754
$2,732,018
$2,108,868
77
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
AGENCY FUNDS
December 31, 2005
With Comparative Totals For December 31, 2004
Statement 19
Liabilities
Escrow deposits payable $ - $15,200 $90,000 $152,254 $257,454 $7,000
Accounts payable 12,420 - - - 12,420 7,535
Due to developers 91,927 - - - 91,927 47,454
Total liabilities $104,347 $15,200 $90,000 $152,254 $361,801 $61,989
r
Developer
Developer
Boutwell's
McKean
Totals
Deposit
Escrow
Landing
Square
Agency Funds
Fund
Fund
Escrow Fund
Escrow Fund
2005 2004
Assets
Cash and investments
$82,236
$15,200
$90,000
$152,254
$339,690 $52,752
Due from developers
22,111
-
-
-
22,111 9,237
Total assets
$104,347
$15,200
$90,000
$152,254
$361,801 $61,989
Liabilities
Escrow deposits payable $ - $15,200 $90,000 $152,254 $257,454 $7,000
Accounts payable 12,420 - - - 12,420 7,535
Due to developers 91,927 - - - 91,927 47,454
Total liabilities $104,347 $15,200 $90,000 $152,254 $361,801 $61,989
r
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 20
AGENCY FUNDS
For The Year Ended December 31, 2005
79
Balance
Balance
January 1,
December 31,
2005
Additions
Deletions
2005
Developer Deposit Fund:
Assets:
Cash and investments
$45,752
$82,236
$45,752
$82,236
Due from developers
9,237
22,111
9,237
22,111
Total assets
$54,989
$104,347
$54,989
$104,347
Liabilities:
Accounts payable
$7,535
$12,420
$7,535
$12,420
Due to developers
47,454
91,927
47,454
91,927
Total liabilities
$54,989
$104,347
$54,989
$104,347
Developer Escrow Fund:
Assets:
Cash and investments
$7,000
$15,200
$7,000
$15,200
Liabilities:
Escrow deposits payable
$7,000
$15,200
$7,000
$15,200
Boutwell's Landing Escrow Fund:
Assets:
Cash and investments
$ -
$90,000
$ -
$90,000
Liabilities:
Escrow deposits payable
$ -
$90,000
$ -
$90,000
McKean Square Escrow Fund:
Assets:
Cash and investments
$ -
$171,508
$19,254
$152,254
Liabilities:
Escrow deposits payable
$ -
$171,508
$19,254
$152,254
Total Agency:
Assets:
Cash and investments
$52,752
$358,944
$72,006
$339,690
Due from developers
9,237
22,111
9,237
22,111
Total assets
$61,989
$381,055
$81,243
$361,801
Liabilities:
Escrow deposits payable
$7,000
$276,708
$26,254
$257,454
Accounts payable
7,535
12,420
7,535
12,420
Due to developers
47,454
91,927
47,454
91,927
Total liabilities
$61,989
$381,055
$81,243
$361,801
79
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1
SUPPLEMENTARY FINANCIAL INFORMATION
CITY OF OAK PARK HEIGHTS, MINNESOTA
REVENUE BONDS AND GENERAL DEBT BONDS
SCHEDULE OF DEBT SERVICE PAYMENTS TO MATURITY
December 31, 2005
Exhibit I
General Debt Bonds
General
General
Obligation
Obligation
Refunding
Improvement
Bonds of 2002
Bonds of 1998
Total
Bonds payable
$65,000
$1,000,000
$1,065,000
Future interest payable
1,722
195,500
197,222
Totals
$66,722
$1,195,500
$1,262,222
Payments to maturity:
2006
$66,722
$167,813
$234,535
2007
-
162,687
162,687
2008
-
157,500
157,500
2009
-
152,250
152,250
2010
-
146,938
146,938
2011
-
141,562
141,562
2012
-
136,125
136,125
2013
-
130,625
130,625
Totals
$66,722
$1,195,500
$1,262,222
CITY OF OAK PARK HEIGHTS, MINNESOTA
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES
Exhibit 2
Tax levy:
City -wide:
General revenue $2,474,455 $2,293,825
Debt service - -
Total tax levy $2,474,455 $2,293,825
'Tax capacity rate
City -wide:
General revenue 38.770% 36.488%
Debt service 0.000% 0.000%
Total
( ' ) Proposed valucs /rates for 2005/2006.
38.770% 36.488%
r
2005/2006
2004/2005
Tax capacity
Real estate
$7,401,828
$6,840,470
Personal property
84,133
78,460
Subtotal
7,485,961
6,918,930
Fiscal disparity:
Contribution
(1,037,753)
(954,578)
Distribution
395,515
341,985
Total
$6,843,723
$6,306,337
Tax levy:
City -wide:
General revenue $2,474,455 $2,293,825
Debt service - -
Total tax levy $2,474,455 $2,293,825
'Tax capacity rate
City -wide:
General revenue 38.770% 36.488%
Debt service 0.000% 0.000%
Total
( ' ) Proposed valucs /rates for 2005/2006.
38.770% 36.488%
r
CITY OF OAK PARK HEIGHTS, MINNESOTA
SCHEDULE OF CONSTRUCTION COSTS Exhibit 3
December 31, 2005
Legal
Expended
and
Current
Prior
Contractor
Engineer
Fiscal
Other
Total
Year
Years
Storm sewer connection:
Kern Center pond
expansion
$242,626
$64,510
$115
$4,051
$311,302
$218,721
$92,581
Capital revolving:
Lighting and pathway
improvements
131,411
31,347
1,251
271
164,280
2,084
162,196
McKean Square:
Street and utility
improvements
1,149,145
254,101
2,845
28,035
1,434,126
132,272
1,301,854
Novak Avenue:
Street and utility
improvements
-
5,267
-
-
5,267
5,267
-
Total - All Funds
$1,523,18
$355,225
$4,211
$32,357
$1,914,975
$358,344
$1,556,631
STATISTICAL SECTION (UNAUDITED)
CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL AND SPECIAL REVENUE FUNDS
EXPENDITURES BY FUNCTION
Years 1996 Through 2005
(UNAUDITED)
Table 1
.r
General
Public
Public
Parks and
Community
Capital
Year
Total
Government
Safety
Works
Sanitation Recreation
Development
Outlay
1996
$2,032,963
$441,852
$796,557
$136,611
$434,175 $185,372
$ -
$38,396
1997
2,034,181
507,902
847,015
99,412
313,302 211,244
-
55,306
1998
2,086,569
774,444
835,293
139,948
- 120,255
43,471
173,158
1999
2,092,809
772,729
887,643
192,501
- 73,241
124,331
42,364
2000
2,113,555
786,886
915,814
170,408
- 86,800
121,056
32,591
2001
2,314,568
919,622
967,854
168,011
- 109,481
126,356
23,244
2002
2,130,329
779,454
1,001,286
134,337
- 87,932
112,775
14,545
2003
2,067,832
769,032
1,020,094
160,724
- 95,818
20,186
1,978
2004
2,193,443
793,871
1,119,533
170,443
- 88,180
-
21,416
2005
2,322,971
851,437
1,172,803
177,751
- 99,980
-
21,000
.r
Licenses
Charges
Fines
Earnings
Inter-
and
for
and
on
Year
Total
Taxes
governmental
Permits
Services
Forfeits
Investments
Miscellaneous
1996
$2,097,097
$1,390,443
$145,741
$156,181
$230,579
$56,545
$56,468
$61,140
1997
2,156,948
1,387,227
167,132
204,986
216,536
60,682
56,501
63,884
1998
2,157,782
1,479,490
200,368
125,678
186,799
60,183
49,912
55,352
1999
2,157,915
1,333,194
192,194
227,693
230,147
58,886
42,711
73,090
2000
2,289,985
1,405,002
180,243
314,527
193,615
56,326
53,842
86,430
2001
2,308,020
1,524,300
179,591
213,651
197,318
68,184
53,343
71,633
2002
2,500,806
1,748,634
188,028
183,596
188,093
63,211
34,990
94,254
2003
2,635,521
1,859,203
79,171
313,273
209,076
61,146
34,652
79,000
2004
2,656,923
1,910,848
70,362
304,594
150,126
78,274
41,546
101,173
2005
3,123,790
2,218,213
101,519
365,512
215,969
69,850
58,055
94,672
CITY OF OAK PARK HEIGHTS, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Years 1996 Through 2005
(UNAUDITED)
Taxes
Total
Payable
Tax Levy
1996
$1,392,558
1997
1,396,182
1998
1,524,087
1999
1,409,400
2000
1,440,200
2001
1,588,435
2002
1,967,579
2003
1,993,003
2004
1,965,536
2005
2,208,178
Percent
of
Current Delinquent
Current Tax Levy Tax
Collections Collected Collections
$1,385,501
99.49%
$7,674
1,387,730
99.39%
4,194
1,541,166
101.12%
5,726
1,394,993
98.98%
4,296
1,426,390
99.04%
13,454
1,566,938
98.65%
16,563
1,904,488
96.79%
(18,789)
1,891,046
94.88%
12,386
1,938,726
98.64%
12,016
2,176,290
98.56%
20,627
' through 2001 excludes HACA. 2002 through 2005 excludes the Market Value Homestead Credit.
Table 3
Total
Outstanding
Collection
Total
as a
Tax
Percent
Collections
of Levy
$18,196
1.31%
$1,393,175
100.04%
1,391,924
99.70%
1,546,892
101.50%
1,399,289
99.28%
1,439,844
99.98%
1,583,501
99.69%
1,885,699
95.84%
1,903,432
95.51%
1,950,742
99.25%
2,196,917
99.49%
' through 2001 excludes HACA. 2002 through 2005 excludes the Market Value Homestead Credit.
Table 3
Delinquent
Outstanding
Percent of
Delinquent
Current
Taxes
Levy
$18,196
1.31%
10,946
0.78%
16,863
1.11%
23,981
1.70%
22,116
1.54%
24,199
1.52%
20,174
1.03%
31,552
1.58%
41,632
2.12%
45,063
2.04%
CITY OF OAK PARK HEIGHTS, MINNESOTA
SPECIAL ASSESSMENT COLLECTIONS
Years 1996 Through 2005
(UNAUDITED)
Table 4
a
Current
Total
Collections
Collections
As a Percent
As a Percent
Current
Current
Of Current
Delinquent
Of Current
Outstanding
Year
Assessments
Assessments
Assessments
Assessments
Assessments
Delinquent
Payable
Due
Collected
Due
Collected
Due
Assessments
1996
$139,628
$136,958
98.09%
$1,071
98.85%
$4,163
1997
166,723
162,433
97.43%
1,743
98.47%
6,582
1998
109,134
106,924
97.97%
2,503
100.27%
6,083
1999
416,712
414,520
99.47%
1,493
99.83%
6,782
2000
333,294
332,190
99.67%
1,647
100.16%
4,162
2001
312,038
311,840
99.94%
4,161
101.27%
197
2002
253,885
247,618
97.53%
197
97.61%
6
2003
246,290
239,390
97.20%
6,267
99.74%
634
2004
200,685
197,940
98.63%
633
98.95%
2,745
2005
206,932
204,585
98.87%
311
99.02%
4,781
a
CITY OF OAK PARK HEIGHTS, MINNESOTA
PRINCIPAL TAXPAYERS (Ten Largest Taxpayers) Table 5
Taxes Payable in 2005
(UNAUDITED)
SOURCE: Washington County Auditor - Treasurer Taxation Division.
NOTES:
(1) If a taxpayer has property consisting of more than one classification, only one is shown.
Percent of
Percent of
Total
Total Tax
Market
Market
Tax
Capacity
Property
Taxpayer
Value
Value
Capacity
Value
Classification
NSP / Xcel Energy
$78,040,300
16.1%
$1,557,715
22.5%
Utility
SC Mall LLC
18,408,500
3.8%
367,420
5.3%
Comm land & bldgs
VSSA Housing & Comm Sery LLC
24,858,800
5.1%
322,060
4.7%
Res 4 or more units
Prudential Insurance Company of America
10,713,600
2.2%
213,522
3.1%
Comm land & bldgs
Menards, Inc
8,853,300
1.8%
173,633
2.5%
Comm land & bldgs
Wal -Mart Real Estate Business
6,945,000
1.4%
138,150
2.0%
Comm land & bldgs
OPH Pat LLC & OPH Val LLC
5,402,300
1.1%
107,296
1.6%
Comm land & bldgs
W.A.T.E. Enterprises, Inc
5,372,100
1.1%
106,680
1.5%
Comm land & bldgs
Raduenz Dealership Prop LLC
4,203,900
0.9%
83,328
1.2%
Comm land & bldgs
WDBH Realty Co
3,968,400
0.8%
78,618
1.1%
Comm land & bldgs
Totals
$166,766,200
34.4%
$3,148,422
45.5%
Total City
$485,026,700
$6,918,930
SOURCE: Washington County Auditor - Treasurer Taxation Division.
NOTES:
(1) If a taxpayer has property consisting of more than one classification, only one is shown.