HomeMy WebLinkAboutAnnual Financial Report CITY OF OAK PARK HEIGHTS, MINNESOTA
ANNUAL FINANCIAL REPORT
December 31, 2006
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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 I 1
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 65
Combining and Individual Fund Statements:
Combining Balance Sheet - Nonmajor Governmental Funds Statement 11 70
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental Funds Statement 12 71
CITY OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 13 72
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue Funds Statement 14 73
Subcombining Balance Sheet - Nonmajor Debt Service Fund - G.O. Refunding Bonds of 2002 Statement 15 74
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service Fund - G.O. Refunding Bonds of 2002 Statement 16 75
Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 17 76
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project Funds Statement 18 78
Agency Funds:
Subcombining Balance Sheet Statement 19 80
Subcombining Statement of Changes in Assets and Liabilities Statement 20 81
STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Assets by Component - Last Three Fiscal Years Table 1 85
Changes in Net Assets - Last Three Fiscal Years Table 2 86
Fund Balances, Governmental Funds - Last Three Fiscal Years Table 3 88
Changes in Fund Balances, Governmental Funds - Last Three Fiscal Years Table 4 89
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 90
Direct and Overlapping Property Tax Capacity Rates Table 6 91
Principal Property Taxpayers Table 7 92
Property Tax Levies and Collections Table 8 93
Debt Capacity:
Ratios of Outstanding Debt by Type Table 9 94
Direct and Overlapping Governmental Activities Debt Table 10 95
Legal Debt Margin Information Table 11 96
Pledged Revenue Coverage Table 12 97
Demographic and Economic:
Demographic and Economic Statistics Table 13 98
Principal Employers Table 14 99
Operating Information:
Full-Time Equivalent City Government Employees By Function/Program Table 15 100
Operating Indicators by Function/Program Table 16 102
Capital Asset Statistics by Function/Program Table 17 104
INTRODUCTORY SECTION
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CITY OF OAK PARK HEIGHTS, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
December 31, 2006
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
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FINANCIAL SECTION
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8
In accordance with Government Auditing Standards, we have also issued our report dated
April 16, 2007 on our consideration of the City of Oak Park Heights, Minnesota's internal
control over financial reporting and on our tests of its compliance with certain provisions of
laws, regulations, contracts and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on 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 required 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 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 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.
An R c w
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
April 16, 2007
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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, 2006.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$29,897,965 (Net assets). Of this amount, $11,672,181 (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 $3,787,901.
As of the close of the current fiscal year, the City's governmental funds reported combined
ending fund balances of $11,176,560.
At the end of the current fiscal year the general fund balance was $2,302,502 of which
$2,071,633 is designated.
The General Fund balance increased by $198,759 as a result of positive budget variances in
revenues.
The City was able to transfer an additional $190,000 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 2002 were used to finance Phase I of the City's Annexation
Area Extended Trunk Facility Improvements. This bond issue was retired as of December 1,
2006.
The Sanitary Sewer Connection Charge Fund, Water Connection Charge Fund and Storm
Sewer Connection Charge Fund collected $780,141 of connection charges in the year 2006.
All four enterprise fund operations reported net operating income in 2006.
11
Management's Discussion and Analysis
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic
financial statements. The City's basic financial statements comprise three components: 1)
government -wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains other supplementary information in addition
to the basic financial statements themselves.
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 fiinds 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
• Novak Avenue Street and Utility Improvements Fund — Capital Project Fund
• Renewal and Replacement Fund — Capital Project Fund
• Park Development Fund — Capital Project Fund
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the form
of subcombining statements elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund.
A budgetary comparison 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.
Dotes 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 $29,879,965 at the
close of the most recent fiscal year.
The largest portion of the City's net assets ($17,308,076 or 58% 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
Governmental Activities BUSiness -Type Activities Totals
2006 2005 2006 2005 2006 2005
Current and other assets $18,410,951 $9,423,353 $1,468,742 $1,194,780 $19,879,693 $10,618,133
Capital assets 5,756,494 10,993,521 5,826,582 5,985,350 11,583,076 16,978,871
Total assets $24,167,445 $20,416,874 $7,295,324 $7,180,130 $31,462,769 $27,597,004
Long -term liabilities outstanding $946,087 $1,032,136 $22,316 $20,408 $968,403 $1,052,544
Other liabilities 550,138 386,093 64,263 66,303 614,401 452,396
Total liabilities $1,496,225 $1,418,229 $86,579 $86,711 $1,582,804 $1,504,940
Net assets:
Invested in capital assets, net ofrelated debt $11,481,494 $9,928,521 $5,826,582 $5,985,350 $17,308,076 $15,913,871
Restricted 899,708 856,611 - - 899,708 856,611
Unrestricted 10,290,018 8,213,513 1,382,163 1,108,069 11,672,181 9,321,582
Total net assets $22,671,220 $18,998,645 $7,208,745 $7,093,419 $29,879,965 $26,092,064
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 $3,672,575 during 2006. Key
elements of this increase are as follows:
City of Oak Park Heights' Changes in Net Assets
Governmental Activities Business -Type Activities Totals
2006 2005 2006 2005 2006 2005
Revenues:
Program revenues:
Charges for services $3,365,283 $975,968 $1,441,053 $1,299,737 $4,806,336 $2,275,705
Operating grants and contributions 74,105 88,229 74,105 88,229
Capital grants and contributions 165,397 62,686 165,397 62,686
General revenues:
General property taxes 2,417,014 2,222,335 2,417,014 2,222,335
Grants and contributions not
restricted to specific programs 29,838 2,040 29,838 2,040
Gain on sale of capital assets 244,098 950 244,098 950
Other revenue 16,255 24,256 - - 16,255 24,256
Unrestricted investment earnings 425,160 258,614 49,037 29,268 474,197 287,882
Total revenues 6,737,150 3,635,078 1,490,090 1,329,005 8,227,240 4,964,083
Expenses:
General government 987,597 882,800 - - 987,597 882,800
Public safety 1,226,042 1,210,179 1,226,042 1,210,179
Public works 755,989 511,137 755,989 511,137
Parks and recreation 152,899 138,378 152,899 138,378
Interest on lone teen debt 43,965 55,695 - - 43,965 55,695
Water - - 398,766 373,996 398,766 373,996
Sanitary sewer 661,367 560,876 661,367 560,876
Storm sewer 65,149 34,150 65,149 34,150
Sanitation - - 147,565 164,572 147,565 164,572
Total expenses 3,166,492 2,798,189 1,272,847 1,133,594 4,439,339 3,931,783
Increase in net assets before transfers 3,570,658 836,889 217,243 195,411 3,787,901 1,032,300
Transfers 101,917 (416,944) (101,917) 416,944 - -
Change in net assets 3,672,575 419,945 115,326 612,355 3,787,901 1,032,300
Netassets - January 1 18,998,645 18,578,700 7,093,419 6,481,064 26,092,064 25,059,764
Netassets - December31 $22,671,220 $18,998,645 $7,208,745 $7,093,419 $29,879,965 $26,092,064
16
Management's Discussion and Analysis
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenditures:
Governmental Activities - Revenues
Umeshieted
investment earnings
Other Gain on Sale of 6%
revenue 0'% Capital Assets 4% Charges for services 50%
Property taxes
36'%
a
Operating grants
Capital gn n's and contributions
%
Conn ibut ions
3%
Governmental Activities - Expenses
, Interest on
Parks and Long 'I'crm General
Recreation 5% Debt 1% Government 31%
Public
Works 24%
I
Public Safety
39%
17
Management's Discussion and Analysis
Business -Type Activities
Business -type activities increased net assets by $115,326 during 2006. Below are graphs
showing the business -type activities revenue and expense comparisons:
Business -Type Activities - Revenues unrestricted
Investment
Earnings 3%
Charges for
Services 97%
Business -Type Activities - Expenses
Storm Sewer
Sanitation 5%
12% Water 31 %
I
w
Sanitary Sewer 52%
18
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 $11,176,560.
The general fund increased by $198,759 in 2006, 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 increased by $407,753 during 2006.
The Novak Utility Improvements capital project fund is funded by direct charges to
developers.
The Renewal and Replacement capital project fund increased by $283,389 during 2006. This
fund receives an annual transfer from the proprietary funds in an amount equal to
depreciation expense.
The Park Development capital project fund increased by $410,338 due to monies collected
from developers for park dedication fees.
The nonmajor special revenue funds increased by $10,605 during 2006.
The nonmajor debt service funds decreased by $62,392 during 2006.
The nonmajor capital project fund increased by $1,425,953 during 2006. $780,141 (55 %) is
attributable to collection of connection charges.
Proprietary funds. The City's proprietary funds provide the same type of information
found in the government -wide financial statements, but in more detail.
19
Management's Discussion and Analysis
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.
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, 2006, amounts to $18,183,076 (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)
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets, not being depreciated:
Land $1,615,116 $278,980 ($2) $1,894,094
Construction in progress 316,569 1,353,195 (314,524) 1,355,240
Total capital assets, not being depreciated 1,931,685 1,632,175 (314,526) 3,249,334
Capital assets, being depreciated:
Buildings and structures 1,1 18,146 - 1,118,146
Other improvements 560,963 325,191 886,154
Machinery and equipment 409,677 32,906 442,583
Furniture and fixtures 139,921 121,269 261,190
Infrastructure 11,234,100 - 11,234,100
Total capital assets, being depreciated 13,462,807 479,366 0 13,942,173
Less accumulated depreciation for:
Buildings and structures 399,306 24,523 423,829
Other improvements 131,993 5,443 137,436
Machinery and equipment 254,506 33,033 287,539
Furniture and fixtures 90,717 14,990 - 105,707
Infrastructure 3,524,449 356,053 3,880,502
Total accumulated depreciation 4,400,971 434,042 0 4,835,013
Total capital assets being depreciated - net 9,061,836 45,324 0 9,107,160
Governmental activities capital assets - net $10,993,521 $1,677,499 ($314,526) $12,356,494
20
Management's Discussion and Analysis
Beginning Ending
Balance Increases Decreases Balance
Business -type activities:
Capital assets, not being depreciated:
Land $60,000 $ $ $60,000
Total capital assets, not being depreciated 60,000 0 0 60,000
Capital assets, being depreciated:
Buildings and structures 1,320,334 - - 1,320,334
Machinery and equipment 219,167 22,255 - 241,422
Distribution and collection systems 7,022,137 - - 7,022,137
Total capital assets, being depreciated 8,561,638 22,255 0 8,583,893
Less accumulated depreciation:
Buildings and structures 492,622 29,860 - 522,482
Machinery and equipment 111,436 10,614 - 122,050
Distribution and collection systems 2,032,230 140,549 - 2,172,779
Less accumulated depreciation 2,636,288 181,023 0 2,817,311
Total capital assets being depreciated - net 5,925,350 (158,768) 0 5,766,582
Business -type activities capital assets - net $5,985,350 ($158,768) $0 $5,826,582
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 $875,000, a decrease of $190,000 from 2005.
Additional long -term debt in the amount of $231,058 for compensated absences was also
outstanding at the end of 2006.
City of Oak Park Heights' Outstanding Debt
General obligation improvement bonds and compensated absences:
Governmental Activities Business -Type Activities Totals
2006 2005 2006 2005 2006 2005
General Obligation Bonds $875,000 $1,065,000 $ - $ - $875,000 $1,065,000
Compensated absences 207,449 171,361 23,609 22,255 231,058 193,616
Total $1,082,449 $1,236,361 $23,609 $22,255 $1,106,058 $1,258,616
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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 $10,787,000. 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.
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BASIC FINANCIAL STATEMENTS
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CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF NET ASSETS Statement I
December 31, 2006
Primary Government
Governmental Business -Type Totals
Assets: Activities Activities 2006 2005
Cash and investments $10,996,187 $1,132,313 $12,128,500 $9,259,046
Accrued interest 318,697 36,800 355,497 194,636
Accounts receivable - net 6,907 261,222 268,129 246,920
Due from other governmental units 33,631 11,562 45,193 119,365
Due from developers 196,471 - 196,471 6,782
Prepaid items - 26,845 26,845 26,359
Taxes receivable:
Delinquent 38,831 - 38,831 45,063
Due from County 31,466 - 31,466 21,167
Special assessments receivable 188,761 - 188,761 698,795
Capital assets (net of accumulated depreciation):
Land 1,894,094 60,000 1,954,094 1,675,116
Building and structures 694,317 797,852 1,492,169 1,546,552
Other improvements 748,718 - 748,718 428,970
Machinery and equipment 155,044 119,372 274,416 262,902
Furniture and fixtures 155,483 - 155,483 49,204
Infrastructure 7,353,598 4,849,358 12,202,956 12,699,558
Construction in progress 1,355,240 - 1,355,240 316,569
Total assets 24,167,445 7,295,324 31,462,769 27,597,004
Liabilities:
Cash overdraft 156,559 - 156,559 -
Accouunts payable 68,968 53,294 122,262 156,337
Salaries payable 2,172 3,093 5,265 3,826
Contracts payable 182,309 - 182,309 25,504
Due to other governmental units 627 6,583 7,210 12,213
Due to developers - - - 44,733
Accrued interest payable 3,141 - 3,141 3,711
Compensated absences payable:
Due within one year 11,362 1,293 12,655 16,072
Due in more than one year 196,087 22,316 218,403 177,544
Bonds payable:
Due within one year 125,000 - 125,000 190,000
Due in more than one year 750,000 - 750,000 875,000
Total liabilities 1,496,225 86,579 1,582,804 1,504,940
Net assets:
Invested in capital assets, net of related debt 11,481,494 5,826,582 17,308,076 15,913,871
Restricted for:
Debt service 694,708 - 694,708 856,611
Autumn Hills Park 205,000 - 205,000 -
Unrestricted 10,290,018 1,3 82,163 11, 672,181 9,321,582
Total net assets $22,671,220 $7,208,745 $29,879,965 $26,092,064
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, 2006
Charges For
Fun ctions /Programs Expenses Services
Primary government:
Governmental activities:
General government $987,597 $85,315
Public safety 1,226,042 456,332
Public works 755,989 1,819,396
Parks and recreation 152,899 1,004,240
Interest on long -term debt 43,965 -
Total governmental activities 3 3,365,283
Business -type activities:
Water 398,766 502,407
Sanitary sewer 661,367 767,207
Storm sewer 65,149 74,173
Sanitation 147,565 97,266
Total business -type activities 1,272,847 1,441,053
Total primary government $4,439,339 $4,806,336
The accompanying notes are an integral part of these financial statements.
26
Statement 2
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 2006 2005
$ - $ - ($902,282) $ - ($902,282) ($733,377)
72,081 - (697,629) - (697,629) (539,559)
1,599 40,397 1,105,403 - 1,105,403 (227,249)
425 125,000 976,766 - 976,766 (115,426)
- - (43,965) - (43,965) (55,695)
74,105 165,397 438,293 0 438,293 (1,671,306)
- - - 103,641 103,641 49,880
- - 105,840 105,840 144,580
- - 9,024 9,024 39,396
- - - (50,299) (50,299) (67,713)
0 0 0 168,206 168,206 166,143
$74,105 $165,397 438,293 168,206 606,499 (1,505,163)
General revenues:
General property taxes 2,417,014 - 2,417,014 2,222,335
Grants and contributions not
restricted to specific programs 29,838 - 29,838 2,040
Unrestricted investment earnings 425,160 49,037 474,197 287,882
Gain on sale of capital assets 244,099 - 244,099 950
Other 16,254 - 16,254 24,256
Transfers 101,917 (101,917) - -
Total general revenues
and transfers 3,234,282 (52,880) 3,181,402 2,537,463
Change in net assets 3,672,575 115,326 3,787,901 1,032,300
Net assets - beginning 18,998,645 7,093,419 26,092,064 25,059,764
_. Net assets - ending $22,671,220 $7,208,745 $29,879,965 $26,092,064
The accompanying notes are an integral part of these financial statements.
27
CITY OF OAK PARK HEIGHTS, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2006
525 G.O.
Improvement Bonds
of 1998 Debt
General Fund Service Fund
Assets
Cash and investments $2,229,287 $496,113
Accrued interest receivable 59,373 12,989
Accounts receivable - net 6,657 -
Due from other governmental units 33,631 -
Due from developers -
Taxes receivable:
Delinquent 38,831 -
Due from County 31,466 -
Special assessments receivable 109 181,879
Total assets $2,399,354 $690,981
Liabilities and Fund Balances
Liabilities:
Cash overdraft $ - $ _
Accounts payable 55,222 -
Salaries payable 2,172 -
Contracts payable - -
Due to other governmental units 627 -
Due to developers - -
Deferred revenue 38,831 178,152
Total liabilities 96,852 178,152
Fund balance:
Reserved - 512,829
Unreserved:
Designated reported in General Fund 2,071,633 -
Designated reported in Special Revenue Funds -
Designated reported in Capital Project Funds - -
Undesignated reported in General Fund 230,869 -
Undesignated reported in Debt Service Fund - -
Total fund balance 2,302,502 512,829
Total liabilities and fund balance $2,399,354 $690,981
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 funds.
Other long -term assets are not available to pay for current -period expenditures and, therefore, are deferred in the funds.
Long -term liabilities, are not due and payable in the current period and therefore are not reported in the funds:
Bonds payable
Compensated absences payable
Accrued interest payable
Net assets of governmental activities
The accompanying notes are an integral part of these financial statements.
28
Statement 3
millillilill
732 Novak 710 Renewal and
Avenue Street and Replacement Other
Utility Capital Project 405 Park Governmental
Improvements Fund Development Funds Total Governmental Funds
2006 2005
$ - $2,840,525 $893,814 $4,536,448 $10,996,187 $8,363,093
- 88,459 25,617 132,259 318,697 174,596
_ - 250 6,907 3,435
_ - 33,631 110,422
164,175 - - 32,296 196,471 6,782
- _ _ - 38,831 45,063
31,466 21,167
_ _ - 6,773 188,761 698,795
$164,175 $2, 928,984 $919,431 $4,708,026 $11,810,951 $9,423,353
$127,697 $ - $ - $28,862 $156,559 $ -
4,085 - 1,458 8,203 68,968 105,256
_ _ - - 2,172 1,988
32,393 - 148,916 1,000 182,309 25,504
_ _ _ - 627 676
_ - 44,733
_ _ - 6,773 223,756 743,041
164,175 0 150,374 44,838 634,391 921,198
- 205,000 717,829 214,783
- 2,071,633 1,817,533
- 86,326 86,326 75,721
2,928,984 769,057 4,324,547 8,022,588 6,107,908
_ _ - 230,869 286,210
_ _ - 47,315 47,315 -
0 2,928,984 769,057 4,663,188 11,176,560 8,502,155
$164,175 $2,928,984 $919,431 $4,708,026 $11,810,951 $9,423,353
$11,176,560 $8,502,155
12,356,494 10,993,521
223,756 743,041
(875,000) (1,065,000)
(207,449) (171,361)
(3,141) (3,711)
$22,671,220 $18,998,645
The accompanying notes are an integral part of these financial statements.
29
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2006
525 G.O.
Improvement Bonds
of 1998 Debt
General Fund Service Fund
Revenues:
General property taxes $2,423,246 $ -
Special assessments 36 503,257
Licenses and permits 306,266 -
Intergovernmental 102,818 -
Charges for services 78,765 -
Direct charges to developers _ _
Fines and forfeits 81,230 -
Investment income 79,610 17,308
Refunds and reimbursements 75,213 -
Donations and contributions _ _
Miscellaneous 1,489 -
Total revenues 3,148,673 520,565
Expenditures:
Current:
General government 941,431 -
Public safety 1,173,049
-
Public works 177,683 -
Parks and recreation 107,071 -
Capital outlay 2,000 -
Debt service:
Principal retirement - 125,000
Interest and other - 42,812
Construction costs _ _
Total expenditures 2,401,234 167,812
Revenues over expenditures 747,439 352,753
Other financing Sources (uses):
Sale of capital assets - _
Transfers in - 55,000
Transfers out (548,680) -
Total other financing sources (uses) (548,680) 55,000
Net change in fund balance 198,759 407,753
Fund balance - January 1 2,103,743 105,076
Fund balance - December 31 $2,302,502 $512,829
The accompanying notes are an integral part of these financial statements.
30
Statement 4
710 Renewal
732 Novak and
Avenue Street Replacement Other
and Utility Capital Project 405 Park Governmental Intra- Activity
Improvements Fund Development Funds Eliminations Total Governmental Funds
2006 2005
$ - $ - $2,423,246 $2,218,906
- 50,157 - 553,450 225,516
- - 306,266 365,512
_ - - 102,818 101,519
- - 1,004,240 803,771 - 1,886,776 294,846
797,689 - - 140,609 - 938,298 139,191
- - - 3,500 - 84,730 69,850
117,872 34,134 176,236 - 425,160 258,614
- - 79,867 - 155,080 125,405
126,125 - 126,125 3,750
- - - 8,900 - 10,389 5,200
797,689 117,872 1,038,374 1,389,165 0 7,012,338 3,808,309
- - - 444 - 941,875 851,437
- 7,392 - 1,180,441 1,172,803
1,228 244,099 - 423,010 208,848
- 107,071 99,980
278,980 162,842 - 443,822 21,000
- 65,000 - 190,000 395,000
- - - 1,723 - 44,535 56,710
797,689 - 347,828 207,678 - 1,353,195 358,344
797,689 0 628,036 689,178 0 4,683,949 3,164,122
0 117,872 410,338 699,987 0 2,328,389 644,187
- - - 244,099 - 244,099 1,167
165,517 - 549,032 (579,132) 190,417 180,098
- - - (118,952) 579,132 (88,500) (88,500)
0 165,517 0 674,179 0 346,016 92,765
0 283,389 410,338 1,374,166 0 2,674,405 736,952
2,645,595 358,719 3,289,022 - 8,502,155 7,765,203
$0 $2,928,984 $769,057 $4,663,188 $0 $11,176,560 $8,502,155
The accompanying notes are an integral part of these financial statements.
31
CITY OF OAK PARK HEIGHTS, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES, Statement 5
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2006
2006 2005
Amounts reported for governmental activities in the
statement of activities are different because:
Net changes in fund balances - total governmental fiends (Statement 4) $2,674,405 $736,952
Governmental fiends 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 (434,042) (401,999)
Capital outlay 1,797,015 379,347
Capital contribution - (508,542)
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds:
Change in delinquent taxes (6,232) 3,429
Change in deferred and delinquent special assessments (513,053) (177,830)
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 190,000 395,000
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 finds. Expenses reported in the statement of activities
include the effects of the changes in these expense accruals as follows:
Change in compensated absences payable (36,088) (7,427)
Change in accrued interest payable 570 1,015
Change in net assets of governmental activities (Statement 2) $3,672,575 $419,945
The accompanying notes are an integral part of these financial statements.
32
(ITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF NET ASSETS Statement 6
PROPRIETARY FUNDS
December 31, 2006
Business -Type Activities Enterprise Funds
707 Storm 708
705 Water 706 Sewer Sewer Utility Sanitation
Utility Fund Utility Fund Fund Utility Fund Totals
2006 2005
Assets:
Current assets:
Cash and cash equivalents $543,599 $426,374 $120,898 $41,442 $1,132,313 $895,953
Accrued interest receivable 18,012 14,829 3,766 193 36,800 20,040
Accounts receivable:
Customers 73,574 117,856 11,109 16,277 218,816 207,720
Certified to County 6,700 20,995 2,364 2,668 32,727 35,524
Other 9,679 - - - 9,679 187
Due from other governmental units 3,438 6,528 667 929 11,562 8,997
Prepaid items - 26,845 - 26,845 26,359
Total current assets 655,002 613,427 138,804 61,509 1,468,742 1,194,780
Noncurrent assets:
Capital assets:
Land 60,000 - - - 60,000 60,000
Buildings and structures 1,199,304 121,030 1,320,334 1,320,334
Machinery and equipment 237,019 4,403 241,422 219,167
Distribution and collection system 3,168,027 3,854,110 7,022,137 7,022,137
Total capital assets 4,664,350 3,979,543 0 0 8,643,893 8,621,638
Less: Allowance for depreciation (1,558,042) (1,259,269) - - (2,817,311) (2,636,288)
Net capital assets 3,106,308 2,720,274 0 0 5,826,582 5,985,350
Total noncurrent assets 3,106,308 2,720,274 0 0 5,826,582 5,985,350
Total assets 3,761,310 3,333,701 138,804 61,509 7,295,324 7,180,130
Liabilities:
Current liabilities:
Accounts payable 5,898 6,384 4,957 36,055 53,294 51,081
Salaries payable 1,682 1,404 7 - 3,093 3,496
Due to other governments 2,811 3,022 - 750 6,583 9,879
Compensated absences payable - current portion 756 463 74 - 1,293 1,847
Total current liabilities 11,147 11,273 5,038 36,805 64,263 66,303
Noncurrent liabilities:
Compensated absences payable 13,051 7,988 1,277 - 22,316 20,408
Total liabilities 24,198 19,261 6,315 36,805 86,579 86,711
Net assets:
Invested in capital assets, net of related debt 3,106,308 2,720,274 - - 5,826,582 5,985,350
Unrestricted 630,804 594,166 132,489 24,704 1,382,163 1,108,069
Total net assets $3,737,112 $3,314,440 $132,489 $24,704 $7,208,745 $7,093,419
The accompanying notes are an integral part of these financial statements.
33
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND Statement 7
CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For The Year Ended December 31, 2006
Business -Type Activities Enterprise Funds
707 Storm 708
705 Water 706 Sewer Sewer Utility Sanitation
Utility Fund Utility Fund Fund Utility Fund Totals
2006 2005
Operating revenues:
Customer billings $463,249 $737,527 $71,926 $95,086 $1,367,788 $1,266,579
Penalties 6,600 12,967 1,427 2,180 23,174 15,672
Meter sales 14,309 - - - 14,309 4,351
Charges for services 8,815 7,960 820 17,595 13,135
Refunds and reimbursements 9,434 8,753 - 18,187 -
Totaloperatingrevenues 502,407 767,207 74,173 97,266 1,441,053 1,299,737
Operating expenses:
Personal services 177,528 122,465 21,146 - 321,139 291,256
Contractual services 89,560 99,145 37,483 145,095 371,283 261,681
Recycling award - - - 573 573 604
MCES charges - 316,304 - - 316,304 292,590
Materials and supplies 9,360 4,373 2,430 1,897 18,060 18,686
Administrative and personnel charges 21,175 39,200 4,090 - 64,465 94,140
Depreciation 101,143 79,880 - - 181,023 174,637
Total operating expenses 398,766 661,367 65,149 147,565 1,272,847 1,133,594
Operating income (loss) 103,641 105,840 9,024 (50,299) 168,206 166,143
Nonoperating revenues (expenses):
Earnings on investments 24,003 19,759 5,018 257 49,037 29,268
Income (loss) before contributions and transfers 127,644 125,599 14,042 (50,042) 217,243 195,411
Capital contributions - - - - - 508,542
Transfers:
Transfers from other fiords - 88,500 88,500 88,500
Transfers to other fiords (99,021) (88,096) (3,300) - (190,417) (180,098)
Total transfers (99,021) (88,096) (3,300) 88,500 (101,917) 416,944
Change in net assets 28,623 37,503 10,742 38,458 115,326 612,355
Net assets - January 1 3,708,489 3,276,937 121,747 (13,754) 7,093,419 6,481,064
Net assets - December 31 $3,737,112 $3,314,440 $132,489 $24,704 $7,208,745 $7,093,419
The accompanying notes are an integral part of these financial statements.
34
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF CASH FLOWS Statement 8
PROPRIETARY FUNDS
For The Year Ended December 31, 2006
Business -Type Activities Enterprise Funds
707 Storm 708
705 Water 706 Sewer Sewer Utility Sanitation
Utility Fund Utility Fund Fund Utility Fund Totals
2006 2005
Cash flows from operating activities:
Receipts from customers and users $457,580 $743,220 $74,470 $95,336 $1,370,606 $1,213,515
Payment to suppliers (135,233) (451,714) (39,226) (147,739) (773,912) (574,795)
Payment to employees (175,891) (121,571) (21,068) (318,530) (381,762)
Miscellaneous revenue 32,558 16,713 820 50,091 17,486
Net cash flows from operating activities 179,014 186,648 14,996 (52,403) 328,255 274,444
Cash flows from noncapital financing activities:
Transfer to other fiords (99,021) (88,096) (3,300) - (190,417) (180,098)
Transfer from other funds 88,500 88,500 88,500
Net cash flows from
noncapital financing activities (99,021) (88,096) (3,300) 88,500 (101,917) (91,598)
Cash flows from capital and related
financing activities:
Acquisition of capital assets (21,920) (335) - - (22,255) (5,208)
Net cash flows from capital
and related financing activities (21,920) (335) 0 0 (22,255) (5,208)
Cash flows from investing activities:
Investment income 16,775 11,995 3,431 76 32,277 18,899
Net increase in cash and cash equivalents 74,848 110,212 15,127 36,173 236,360 196,537
Cash and cash equivalents - January 1 468,751 316,162 105,771 5,269 895,953 699,416
Cash and cash equivalents - December 31 $543,599 $426,374 $120,898 $41,442 $1,132,313 $895,953
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) $103,641 $105,840 $9,024 ($50,299) $168,206 $166,143
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities:
Depreciation 101,143 79,880 - - 181,023 174,637
Changes in assets and liabilities:
Decrease (increase) in receivables (12,269) (7,274) 1,117 (1,930) (20,356) (68,736)
Decrease (increase) in prepaid expenses (486) - - (486) (1,976)
Increase (decrease) in payables (13,501) 8,688 4,855 (174) (132) 4,376
Total adjustments 75,373 80,808 5,972 (2,104) 160,049 108,301
Net cash provided by operating activities $179,014 $186,648 $14,996 ($52,403) $328,255 $274,444
Noneash investing, capital and financing activities:
Contribution of capital asset $ $ - $ - $ $ - $508,542
'The accompanying notes are an integral part of these financial statements.
35
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF FIDUCIARY NET ASSETS Statement 9
AGENCY FUNDS
December 31, 2006
2006 2005
Assets:
Cash and investments $177,178 $339,690
Due from developers 8,934 22,111
Total assets 186,112 361,801
Liabilities:
Escrow deposits payable $78,218 $257,454
Accounts payable 6,729 12,420
Due to developers 101,165 91,927
Total liabilities 186,112 361,801
Net assets:
Unrestricted $0 $0
The accompanying notes are an integral part of these financial statements.
36
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Oak Park Heights, Minnesota operates under the State of Minnesota Statutory Plan A form of
government. The governing body consists of a five member City council elected by voters of the City.
The financial statements of the City of Oak Park Heights, Minnesota have been prepared in conformity with
generally accepted accounting principles as applied to governmental units by the Governmental Accounting
Standards Board (GASB). The following is a summary of the significant accounting policies.
A. FINANCIAL REPORTING ENTITY
As required by generally accepted accounting principles, the financial statements of the reporting
entity include those of the City (the primary government) and its component units, entities 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, Minnesota 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, Minnesota is a separate legal entity. The EDA board
members are substantially the same as the City council in that four of the five board members are
council members and the fifth board member is the City finance director. Separate financial
statements are not prepared by the EDA.
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
The government -wide financial statements (i.e., the statement of net 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 function or business -type activity. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or business -type activity and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or business -type
activity. Taxes and other items not included among program revenues are reported instead as general
revenues.
37
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL, STATEMENTS
December 31, 2006
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
finds, even though the latter are excluded from the government -wide financial statements. Major
individual governmental finds and major individual enterprise funds are reported as separate columns
in the find 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 finds. Agency
finds 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 f nancial 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 - S 1,990,000 bond issue to find 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.
38
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
The Novak Avenue Street and Utility Improvements Capital Project Fund— for construction of
Novak Avenue street and utility improvements. Expenditures are paid by developer. No City
funds are expended.
The Renewal and Replacement Capital Project Fund is used to account for assets depreciated
from the utility fund and water and sanitary sewer departments. Funds are used to renew or
replace water and sanitary sewer system assets.
The Park Development Capital Project Fund — is used to account for the development of the
City's parks and recreational areas.
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 Find 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 find 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 funds, subject to this same limitation.
The government has elected not to follow subsequent private - sector guidance.
As a general rile the effect of interfund activity has been eliminated from the government -wide
financial statements. Exceptions to this general rule are transactions that would be treated as revenues,
expenditures or expenses if they involved external organizations, such as buying goods and services or
payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination
of these charges would distort the direct costs and program revenues reported for the various functions
concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes.
39
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL., STATEMENTS
December 31, 2006
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 fiords 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.
D. BUDGETS
Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual
appropriated budgets are adopted for the General Fund, but not for Special Revenue Funds. Budgeted
expenditure appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not
employed by the City because it is at present not considered necessary to assure effective budgetary
control or to facilitate effective cash management.
E. LEGAL COMPLIANCE - BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Administrator submits to the City Council a proposed operating budget for the fiscal
year commencing the following January 1. The operating budget includes proposed
expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmental basis and can
be expended by each department based upon detailed budget estimates for individual
expenditure accounts.
4. The department heads are authorized to transfer appropriations under $500 within any
department budget. Additional interdepartmental or interfund appropriations and deletions
are or may be authorized by the City Council with fund (contingency) reserves or additional
revenues.
5. Formal budgetary integration is employed as a management control device during the year for
the General Fund.
40
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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 finds 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 find is considered cash equivalents.
G. RECEIVABLES AND PAYABLES
Property taxes and special assessments (see notes 1H and I) have been reported net of estimated
uncolleetible accounts. Because utility bills are considered liens on property, no estimated
uncolleetible 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, 2006
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 Judy 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 full payment is made or the amount is determined to be excessive by the City Council or
court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit
sale. Proceeds of sales from tax forfeit properties are allocated first to the County's costs of
administering all tax forfeit properties. Generally, the City will collect the full amount of its special
assessments not adjusted by City Council or court action. Pursuant to State Statutes, a property shall
be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal
recreational land in which event the property is subject to such sale after five years.
42
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Government -Wide Financial Statements
The City recognizes special assessment revenue in the period that the assessment roll was adopted by
the City Council. Uncollectible special assessments are not material and have not been reported.
Governmental Fund Financial Statements
Revenue from special assessments is recognized by the City when it becomes measurable and
available to finance expenditures of the current fiscal period. In practice, current and delinquent
special assessments received by the City are recognized as revenue for the current year. All remaining
delinquent and deferred assessments receivable in governmental funds are offset by deferred revenues.
B. 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 find 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, 2006, no interest was
capitalized in connection with construction in progress.
43
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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 50 years
Machinery and equipment 3 — 20 years
Distribution and collection systems 50 years
Streets 25 years
Storm sewers 50 years
Pathways 20 years
M. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay
benefits. All vacation pay and accumulated sick leave benefits that is vested as accrued when incurred
in the government -wide and proprietary fiord financial statements.
A liability for these amounts is reported in governmental fiends 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 find 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 fiord 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 fund financial statements, governmental find 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 finds report reservations of fund balance for amounts
not appropriable for expenditure or legally segregated for a specific future use. Designated find
balances represent tentative plans for future use of financial resources.
44
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
P. INTERFUND TRANSACTIONS
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures /expenses initially made from it
that are properly applicable to another fund, are recorded as expenditures /expenses in the reimbursing
fund and as reductions of expenditures /expenses in the fund that is reimbursed. Interfund loans are
reported as an interfund loan receivable or payable which offsets the movement of cash between
funds. All other interfund transactions are reported as transfers.
Q. 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.
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;
e) 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 fiends 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
45
CITY OF OAK PARI{ HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Investors Service, Inc. or Standard & Poor's Corporation; and
f) Time deposits that are filly insured by any Federal agency.
At December 31, 2006 the carrying amount of the City's deposits with financial institutions was
$10,124,729, all of which were collateralized.
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 goverment 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.
g) General obligation temporary bonds of the same governmental entity issued under section
429.091, subdivision 7; 469.178, subdivision 5; or 475.6 1, subdivision 6.
46
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
As of December 31, 2006 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 $346,500 $ - $346,500 $ -
Federal Home Loan Mortgage Corp. Notes (2) 842,686 - 194,875 647,811
Federal Home Loan Bank Notes (3) 446,097 - 346,097 100,000
External investment pool - 4M Fund 389,007 389,007 - -
Total $2,024,290 $389,007 $887,472 $747,811
" of these notes have call dates that occur Total investments $2,024,290
in less than one year. Deposits 10,124,729
(2) $399,750 of these notes have call dates that Petty cash 100
occur in less than one year Total cash and investments $12,149,119
(3 ) These notes all have call dates that occur
in less than one year.
Following is a reconciliation of the City's cash and investment balances as of December 31, 2006:
Government -wide statement of net assets:
Cash and investments $12,128,500
Cash overdraft (156,559)
Fiduciary funds statement of net assets 177,178
$12,149,119
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, 2006, 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, 2006
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 6.9% of the City's total cash and investments.
Note 3 RECEIVABLES
Governmental fiends 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:
Unavailable Unearned
Delinquent property taxes receivable (General Fund) $38,831 $ -
Special assessments receivable (Nonmajor Funds) 6,773 -
Special assessments receivable (G.O. Improvement Bonds of 1998 Fund) 178,152 -
Total deferred /unearned revenue for governmental funds $223,756 $0
48
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 4 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2006 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets, not being depreciated:
Land $1,615,116 $278,980 ($2) $1,894,094
Construction in progress 316,569 1,353,195 (314,524) 1,355,240
Total capital assets, not being depreciated 1,931,685 1,632,175 (314,526) 3,249,334
Capital assets, being depreciated:
Buildings and structures 1,118,146 - 1,118,146
Other improvements 560,963 325,191 - 886,154
Machinery and equipment 409,677 32,906 - 442,583
Furniture and fixtures 139,921 121,269 - 261,190
Infrastructure 11,234,100 - - 11,234,100
Total capital assets, being depreciated 13,462,807 479,366 0 13,942,173
Less accumulated depreciation for:
Buildings and strictures 399,306 24,523 - 423,829
Other improvements 131,993 5,443 - 137,436
Machinery and equipment 254,506 33,033 - 287,539
Furniture and fixtures 90,717 14,990 - 105,707
Infrastructure 3,524,449 356,053 - 3,880,502
Total accumulated depreciation 4,400,971 434,042 0 4,835,013
Total capital assets being depreciated - net 9,061,836 45,324 0 9,107,160
Governmental activities capital assets - net $10,993,521 $1,677,499 ($314,526) $12,356,494
49
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Beginning Ending
Balance Increases Decreases Balance
Business -type activities:
Capital assets, not being depreciated:
Land $60,000 $ - $ - $60,000
Total capital assets, not being depreciated 60,000 0 0 60,000
Capital assets, being depreciated:
Buildings and structures 1,320,334 - - 1,320,334
Machinery and equipment 219,167 22,255 - 241,422
Distribution and collection systems 7,022,137 - - 7,022,137
Total capital assets, being depreciated 8,561,638 22,255 0 8,583,893
Less accumulated depreciation:
Buildings and structures 492,622 29,860 - 522,482
Machinery and equipment 111,436 10,614 - 122,050
Distribution and collection systems 2,032,230 140,549 - 2,172,779
Less accumulated depreciation 2,636,288 181,023 0 2,817,311
Total capital assets being depreciated - net 5,925,350 (158,768) 0 5,766,582
Business -type activities capital assets - net $5,985,350 ($158,768) $0 $5,826,582
Depreciation expense was charged to functions /programs of the primary government as follows:
Governmental activities:
General government $35,203
Public safety 21,067
Public works 333,451
Recreation 44,321
Total depreciation expense - governmental activities $434,042
Business -type activities:
Water $101,143
Sewer 79,880
Total depreciation expense - business -type activities $181,023
50
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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 -terin 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, 2006, the long -tern debt of the financial reporting entity consisted of the following:
Final Authorized
Issue Maturity Interest And Outstanding
Date Date Rate Issued 12/31/06
Governmental Activities:
Improvement bonds:
G.O. Improvement Bonds of 1998 10/01/98 12/01/13 4.00 -4.50 $1,990,000 $875,000
Compensated absences payable 207,449
Total governmental activities 1,082,449
Business -Type Activities:
Compensated absences payable 23,609
Total City indebtedness $1,106,058
Annual debt service requirements to maturity for long -term debt are as follows:
Year G.O. Improvement Bonds
Ending Governmental Activities
December 31, Principal Interest
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 $875,000 $152,687
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, 2006
C hange in Long -Term Liabilities
Long -term liability activity for the year ended December 31, 2006, was as follows:
Balance Balance Due Within
01/01/06 Additions Reductions 12/31/06 One Year
Governmental Activities:
Bonded debt:
General obligation $65,000 $ - $65,000
Improvement bonds 1,000,000 - 125,000 875,000 125,000
Compensated absences 171,361 74,735 38,647 207,449 11,362
Total governmental activities $1,236,361 $74,735 $228,647 $1,082,449 $136,362
Business -Type Activities:
Compensated absences $22,255 $10,508 $9,154 $23,609 $1,293
Total business -type activities $22,255 $10,508 $9,154 $23,609 $1,293
For the governmental activities, compensated absences are generally liquidated by the General Fund. All
long -term bonded indebtedness outstanding at December 31, 2006 is backed by the full faith and credit of
the City, including improvement bond issues. Delinquent assessments receivable at December 31, 2006
were $2,259.
Mote 6 PENSION PLANS
Ae PERA DEFINED BENEFIT PLAN
PLAN DESCRIPTION
All full -time and certain part -time employees of the City are covered by defined benefit plans administered
by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public
Employees Retirement Fund (PEKE) 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.
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.
52
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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 5.50 %, respectively, of their annual
covered salary in 2006. Contribution rates in the Coordinated Plan will increase in 2007 to 5.7 %.
PEPFF members were required to contribute 7.0% of their annual covered salary in 2006. That rate
will increase to 7.8% in 2007. The City is required to contribute the following percentages of annual
covered payroll: 11.78% for Basic Plan PERF members, 6.0% for Coordinated Plan PERT members,
and 10.5% for PEPFF members. Employer contribution rates for the Coordinated Plan and PEPFF
will increase to 6.25% and 11.7% respectively, effective January 1, 2007. The City's contributions to
the Public Employees Retirement Fund for the years ending December 31, 2006, 2005 and 2004 were
$38,951, $33,500 and $31,632, respectively. The City's contributions to the Public Employees Police
and Fire Fund for the years ending December 31, 2006, 2005 and 2004 were $70,569, $60,723 and
$58,277, 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
$8,636 for the year ended December 31, 2006.
53
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 7 INTERFUND TRANSFERS
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 $ $ $460,180 $88,500 $548,680
Nonmajor Governmental Funds 55,000 - 63,952 - 118,952
Business -Type Activities:
Water Utility Fund - 88,221 10,800 99,021
Sewer Utility Fund 77,296 10,800 88,096
Storm Sewer Utility Fund - - 3,300 - 3,300
Total transfers $55,000 $165,517 $549,032 $88,500 $858,049
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 2006 transfers are considered routine and consistent with
previous practices.
Note 8 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
find. 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, 2006.
54
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 9 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.
55
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 10 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY
At December 31, 2006 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, 2006 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,
2006
Governmental Funds:
Major Funds:
General Fund:
Designated for cash flow $1,409,000
Designated for contingent employee benefit 169,633
Designated for general contingency 493,000
G.O. Improvement Bonds of 1998:
Reserved for debt service 512,829
Renewal and Replacement Find:
Designated for capital improvements 2,928,984
Park Development Fund:
Designated for capital improvements 769,057
Nonmajor Funds:
Reserved for Autumn Hills Park 205,000
Designated for special revenue programs 86,326
Designated for capital improvements 4,324,547
Totals $10,898,376
Note 11 MAJOR TAXPAYER
The City has one major taxpayer, Xcel Energy. The total tax capacity value for this taxpayer represented
approximately 22% of the City's total tax capacity value for taxes payable in 2006.
56
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 12 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, 2006, there were six series of Industrial Revenue Bonds outstanding. The principal
amount payable at December 31, 2006 could not be determined; however, their original issue amounts totaled
$54,985,000.
Note 13 COMMITMENTS
Construction commitments at December 31, 2006 were composed of the following:
Expended Remaining
Contract as of Contract
Description Authorized 12/31/06 Commitment
Novak Avenue Street and
Utility Improvements $806,661 $647,862 $158,799
Oakgreen Avenue Street and
Utility Improvements 160,770 156,924 3,846
Autumn Hills Park Shelter 415,232 305,767 109,465
Total $1,382,663 $1,110,553 $272,110
57
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58
REQUIRED SUPPLEMENTARY INFORMATION
59
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 5
For The Year Ended December 31, 2006
With Comparative Actual Amounts For The Year Ended December 31, 2005
Variance with
Final Budget -
2006 Actual Positive 2005 Actual
Budgeted Amounts Amounts (Negative) Amounts
Original Final
Revenues:
Property taxes $2,388,808 $2,388,808 $2,402,354 $13,546 $2,198,452
Payment in lieu of taxes 18,000 18,000 20,892 2,892 19,761
Total property taxes 2,406,808 2,406,808 2,423,246 16,438 2,218,213
Special assessments - - 36 36 -
Intergovernmental:
Federal:
Safe and sober 7,100 7,100 7,055 (45) 21,500
Operation nightcap 900 900 834 (66) 796
Releaf grant - - 1,000 1,000 440
Underage compliance checks 960 960 960 - -
State:
Police aid 58,100 58,100 60,723 2,623 58,277
Police training aid - - 1,809 1,809 2,820
PERA rate increase aid 2,040 2,040 2,040 - 2,040
Emergency vehicle preemption grant - - - - 15,000
Local government aid 27,798 27,798 27,798 - -
County:
Gravel tax allocation - - 599 599 646
Total intergovernmental 96,898 96,898 102,818 5,920 101,519
Licenses and permits 172,340 172,340 306,266 133,926 365,512
Charges for services:
General government 10,000 10,000 14,300 4,300 37,110
Inspections - City of Bayport - - - - 84,719
Administrative - Enterprise Fund 64,465 64,465 64,465 - 94,140
Total charges for services 74,465 74,465 78,765 4,300 215,969
Fines and forfeits 62,000 62,000 81,230 19,230 69,850
Investment income 47,270 47,270 79,610 32,340 55,431
Refunds and reimbursements 68,000 68,000 75,213 7,213 85,305
Donations and contributions - - - - 3,000
Sale of property - - 1,489 1,489 1,167
Total revenues 2,927,781 2,927,781 3,148,673 220,892 3,115,966
60
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 5
For The Year Ended December 31, 2006
With Comparative Actual Amounts For The Year Ended December 31, 2005
Variance with
Final Budget -
2006 Actual Positive 2005 Actual
Budgeted Amounts Amounts (Negative) Amounts
Original Final
Expenditures:
General government:
Mayor and city council:
Current:
Personal services $44,000 $44,000 $45,460 ($1,460) $38,920
Materials and supplies 800 800 695 105 548
Other services and charges 23,065 23,065 17,427 5,638 12,532
Total mayor and city council 67,865 67,865 63,582 4,283 52,000
City administration:
Current:
Personal services 156,510 156,510 156,647 (137) 177,420
Materials and supplies 4,000 4,000 2,051 1,949 2,057
Other services and charges 42,435 42,435 38,852 3,583 12,504
Total City administration 202,945 202,945 197,550 5,395 191,981
Legal:
Current:
Personal services 30,000 30,000 18,927 11,073 17,447
General management and building:
Current:
Materials and supplies 7,900 7,900 7,750 150 5,178
Other services and charges 66,400 66,400 63,660 2,740 59,481
Total general management and building 74,300 74,300 71,410 2,890 64,659
Elections:
Current:
Personal services 4,500 4,500 4,367 133 2,642
Materials and supplies 1,300 1,300 1,214 86 302
Other services and charges 1,000 1,000 340 660 340
Total elections 6,800 6,800 5,921 879 3,284
Finance:
Current:
Personal services 146,720 146,720 148,355 (1,635) 160,805
Materials and supplies 2,700 2,700 2,082 618 1,607
Other services and charges 23,905 23,905 35,709 (11,804) 1,854
Total finance 173,325 173,325 186,146 (12,821) 164,266
Computer system:
Current:
Materials and supplies 1,500 1,500 1,668 (168) 5,272
Other services and charges 20,500 20,500 10,852 9,648 12,050
Total computer system 22,000 22,000 12,520 9,480 17,322
Audit:
Current:
Personal services 15,900 15,900 16,673 (773) 10,742
61
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 5
For The Year Ended December 31, 2006
With Comparative Actual Amounts For The Year Ended December 31, 2005
Variance with
Final Budget -
2006 Actual Positive 2005 Actual
Budgeted Amounts Amounts (Negative) Amounts
Original Final
Expenditures: (continued)
General government: (continued)
Insurance:
Current:
Other services and charges $300,935 $300,935 $298,671 $2,264 $271,820
Assessing:
Current:
Personal services 19,100 19,100 18,126 974 18,126
Planning and zoning:
Current:
Personal services 56,750 56,750 31,139 25,611 25,141
Materials and supplies 100 100 11 89 -
Other services and charges 1,950 1,950 1,475 475 1,650
Total planning and zoning 58,800 58,800 32,625 26,175 26,791
Engineering:
Current:
Other services and charges 27,000 27,000 12,895 14,105 5,843
General contingency:
Current:
Other services and charges 10,000 10,000 6,385 3,615 6,652
Total general government 1,008,970 1,008,970 941,431 67,539 850,933
Public safety:
Police department:
Current:
Personal services 789,680 789,680 763,403 26,277 768,673
Materials and supplies 37,675 37,675 36,270 1,405 32,507
Other services and charges 127,060 127,060 128,131 (1,071) 95,579
Total police department 954,415 954,415 927,804 26,611 896,759
Building inspections:
Current:
Personal services 95,030 95,030 100,641 (5,611) 133,179
Materials and supplies 3,300 3,300 3,253 47 2,472
Other services and charges 21,885 21,885 16,864 5,021 6,805
Total building inspections 120,215 120,215 120,758 (543) 142,456
Fire protection:
Current:
Materials and supplies 2,000 2,000 2,000 - 2,000
Other services and charges 123,492 123,492 120,995 2,497 117,990
Total fire protection 125,492 125,492 122,995 2,497 119,990
62
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 5
For The Year Ended December 31, 2006
With Comparative Actual Amounts For The Year Ended December 31, 2005
Variance with
Final Budget -
2006 Actual Positive 2005 Actual
Budgeted Amounts Amounts (Negative) Amounts
Original Final
Expenditures: (continued)
Public safety: (continued)
Civil defense:
Current:
Other services and charges $5,100 $5,100 $86 $5,014 $94
Animal control:
Current:
Materials and supplies 150 150 39 111 79
Other services and charges 1,750 1,750 1,367 383 659
Total animal control 1,900 1,900 1,406 494 738
General public safety:
Capital outlay - - - 21,000
Total public safety 1,207,122 1,207,122 1,173,049 34,073 1,181,037
Public works:
Street maintenance:
Current:
Personal services 18,660 18,660 17,334 1,326 18,152
Materials and supplies 6,165 6,165 7,164 (999) 2,836
Other services and charges 23,070 22,070 17,414 4,656 13,745
Capital outlay - 1,000 1,000 - -
Total street maintenance 47,895 47,895 42,912 4,983 34,733
Snow removal:
Current:
Materials and supplies 1,500 1,500 23 1,477 256
Other services and charges 85,000 85,000 46,242 38,758 63,220
Total snow removal 86,500 86,500 46,265 40,235 63,476
Street lighting:
Current:
Other services and charges 55,450 54,450 54,317 133 49,492
Capital outlay - 1,000 1,000 - -
Total street lighting 55,450 55,450 55,317 133 49,492
Abborist:
Current:
Personal services 15,125 15,125 12,679 2,446 10,283
Materials and supplies 150 150 - 150 -
Other services and charges 255 255 70 185 192
Total arborist 15,530 15,530 12,749 2,781 10,475
Tree removal and planting:
Current:
Other services and charges 20,000 20,000 22,440 (2,440) 19,575
Total public works 225,375 225,375 179,683 45,692 177,751
63
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 5
For The Year Ended December 31, 2006
With Comparative Actual Amounts For The Year Ended December 31, 2005
Variance with
Final Budget -
2006 Actual Positive 2005 Actual
Budgeted Amounts Amounts (Negative) Amounts
Original Final
Expenditures: (continued)
Parks and recreation:
Parks, playgrounds and rinks:
Current:
Personal services $51,035 $51,035 $42,877 $8,158 $42,473
Materials and supplies 7,850 7,850 12,639 (4,789) 7,864
Other services and charges 68,740 68,740 51,555 17,185 49,643
Total parks and recreation 127,625 127,625 107,071 20,554 99,980
Total expenditures 2,569,092 2,569,092 2,401,234 167,858 2,309,701
Revenues over expenditures 358,689 358,689 747,439 388,750 806,265
Other financing sources (uses):
Transfers out (358,680) (358,680) (548,680) (190,000) (550,130)
Net change in fund balances $9 $9 198,759 $198,750 256,135
Fund balance - January 1 2,103,743 1,847,608
Fund balance - December 31 $2,302,502 $2,103,743
64
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2006
Note A LEGAL COMPLIANCE — BUDGETS
The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted
in the United States of America. The legal level of budgetary control is at the department level for the General
Fund.
65
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66
COMBINING AND INDIVIDUAL FUND STATEMENTS
67
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68
N®NMAJ ®R GOVERNMENTAL FUNDS
69
CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINING BALANCE SHEET Statement 11
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2006
With Comparative Totals For December 31, 2005
Totals
Nonmajor
Special Debt Capital Governmental Funds
Assets Revenue Service Project 2006 2005
Cash and investments $83,699 $44,065 $4,408,684 $4,536,448 $3,285,410
Interest receivable 2,627 3,250 126,382 132,259 70,372
Accounts receivable - net - - 250 250 -
Due from other governmental units - - - - 40,000
Due from developers - - 32,296 32,296 -
Special assessments receivable:
Deferred - - 6,773 6,773 56,150
Delinquent - - - - 744
Total assets $86,326 $47,315 $4,574,385 $4,708,026 $3,452,
Liabilities and Fund Balance
Liabilities:
Cash overdraft $ - $ - $28,862 $28,862 $ -
Accounts payable - - 8,203 8,203 37,267
Contracts payable - - 1,000 1,000 25,504
Due to developers - - - - 44,733
Deferred revenue - - 6,773 6,773 56,150
Total liabilities 0 0 44,838 44,838 163,654
Fund balance:
Reserved - - 205,000 205,000 109,707
Unreserved:
Designated 86,326 - 4,324,547 4,410,873 3,179,315
Undesignated - 47,315 - 47,315 -
Total fund balance 86,326 47,315 4,529,547 4,663,188 3,289,022
Total liabilities and fund balance $86,326 $47,315 $4,574,385 $4,708,026 $3,452,676
70
CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 12
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2006
With Comparative Totals For The Year Ended December 31, 2005
Totals
Special Debt Capital Nonmajor Governmental Funds
Revenue Service Project 2006 2005
Revenues:
General property taxes $ - $ - $ - $ - $693
Special assessments - - 50,157 50,157 114,455
Charges for services - - 803,771 803,771 55,925
Direct charges to developers - - 140,609 140,609 6,919
Fines and forfeits - - 3,500 3,500 -
Investment income 3,501 4,331 168,404 176,236 104,987
Refunds and reimbursements 6,040 - 73,827 79,867 40,100
Donations and contributions - - 126,125 126,125 750
Miscellaneous 8,900 - - 8,900 5,200
Total revenues 18,441 4,331 1,366,393 1,389,165 329,029
Expenditures:
Current:
General government 444 - - 444 504
Public safety 7,392 - - 7,392 12,766
Public works - - 244,099 244,099 31,097
Capital outlay - - 162,842 162,842 -
Debt service:
Principal - 65,000 - 65,000 270,000
Interest - 1,723 - 1,723 8,898
Construction costs - - 207,678 207,678 226,072
Total expenditures 7,836 66,723 614,619 689,178 549,337
Revenues over (under) expenditures 10,605 (62,392) 751,774 699,987 (220,308)
Other financing sources (uses):
Sale of capital assets - - 244,099 244,099 -
Transfers in - - 549,032 549,032 486,530
Transfers out - - (118,952) (118,952) (50,000)
Total other financing sources (uses) 0 0 674,179 674,179 436,530
Net change in fund balance 10,605 (62,392) 1,425,953 1,374,166 216,222
Fund balance - January 1 75,721 109,707 3,103,594 3,289,022 3,072,800
Fund balance - December 31 $86,326 $47,315 $4,529,547 $4,663,188 $3,289,022
71
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 13
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2006
With Comparative Totals For December 31, 2005
202 Forcfeiture 204 Economic Totals Nonmajor Special Revenue
and Seizure Development Funds
Assets 2006 2005
Cash and investments $29,947 $53,752 $83,699 $73,925
Accrued interest receivable 841 1,786 2,627 1,796
Total assets $30,788 $55,538 $86,326 $75,721
Liabilities and Fund Balance
Liabilities $ - $ - $ - $ _
Fund balance:
Unreserved:
Designated for special revenue programs 30,788 55,538 86,326 75,721
Total fund balance 30,788 55,538 86,326 75,721
Total liabilities and fund balance $30,788 $55,538 $86,326 $75,721
72
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, Statement 14
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2006
With Comparative Totals For The Year Ended December 31, 2005
202 Forefeiture 204 Economic Totals Nonmajor Special Revenue
and Seizure Development Funds
2006 2005
Revenues:
Investment income $1,121 $2,380 $3,501 $2,624
Refunds and reimbursements 6,040 - 6,040 -
ConBscated property 8,900 - 8,900 5,200
Total revenues 16,061 2,380 18,441 7,824
Expenditures:
General government:
Current:
Contractual services - 444 444 504
Public safety:
Current:
Materials and supplies 4,009 - 4,009 6,448
Contractual services 3,383 - 3,383 6,318
Total expenditures 7,392 444 7,836 13,270
Revenues over (under) expenditures 8,669 1,936 10,605 (5,446)
Fund balance - January 1 22,119 53,602 75,721 81,167
Fund balance - December 31 $30,788 $55,538 $86,326 $75,721
73
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 15
NONMAJOR DEBT SERVICE FUND - G.O. REFUNDING BONDS OF 2002
December 31, 2006
With Comparative Totals For December 31, 2005
Nonmajor Debt Service Fund
Assets 2006 2005
Cash and investments $44,065 $104,222
Accrued interest receivable 3,250 5,485
Total assets $47,315 $109,707
Liabilities and Fund Balance
Liabilities $ - $ _
Fund balance:
Reserved for debt service - 109,707
Unreserved:
Undesignated 47,315 -
Total fund balance 47,315 109,707
Total liabilities and fund balance $47,315 $109,707
74
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, Statement 16
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUND - G.O. REFUNDING BONDS OF 2002
For The Year Ended December 31, 2006
With Comparative Totals For The Year Ended December 31, 2005
Nonmajor Debt Service Fund
Revenues: 2006 2005
Taxes:
Property taxes $ - $693
Special assessments:
Principal 27,445
Interest - 63
Investment income 4,331 10,214
Total revenues 4,331 38,415
Expenditures:
Debt service:
Principal retirement 65,000 270,000
Interest and other 1,723 8,898
Total expenditures 66,723 278,898
Revenues over (under) expenditures (62,392) (240,483)
Other financing sources (uses):
Transfers in - 8,640
Net change in fiord balance (62,392) (231,843)
Fund balance - January 1 109,707 341,550
Fund balance - December 31 $47,315 $109,707
75
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2006
With Comparative Totals For December 31, 2005
401 Budgeted
Projects and
500 Capital Equipment 565 Street 406 Brekke 711 Water
Revolving Fund Revolving Reconstruction Park Memorial Tower Rental
Assets
Cash and investments $704,342 $1,011,981 $669,277 $341 $56,071
Interest receivable 19,472 27,030 18,861 9 1,502
Accounts receivable - 250 - - -
Due from other governmental units - -
Due from developers -
Special assessments receivable:
Deferred 6,773 - - -
Due from county - - - _ _
Total assets $730,587 $1,039,261 $688,138 $350 $57,573
Liabilities and Fund Balance
Liabilities:
Cash overdraft $ - $ - $ _ $ _ $ _
Accounts payable 287 5,280 - -
Contracts payable - -
Due to developers -
Deferred revenue 6,773 - - - Total liabilities 7,060 5,280 0 0 0
Fund balance:
Reserved for Autumn Hills Park - 205,000 - - -
Unreserved:
Designated for capital improvement 723,527 828,981 688,138 350 57,573
Total fund balance 723,527 1,033,981 688,138 350 57,573
Total liabilities and fiord balance $730,587 $1,039,261 $688,138 $350 $57,573
76
Statement 17
731 McKean 771 Sanitary 773 AAE -
Square Capital 733 Oakgreen Sewer 772 Water Storm Sewer Totals Nonmajor Capital Project
Project Fund Avenue Utilities Connection Connection Connection Funds
2006 2005
$460,446 $652,437 $853,789 $4,408,684 $3,107,263
- 15,834 14,847 28,827 126,382 63,091
_ - - - 250 -
_ - 40,000
45 32,251 - - - 32,296 -
_ _ _ - 6,773 56,150
- - - 744
$45 $32,251 $476,280 $667,284 $882,616 $4,574,385 $3,267,248
$45 $28,817 $ - $ - $ - $28,862 $ -
2,434 - - 202 8,203 37,267
1,000 - - - 1,000 25,504
- _ - 44,733
6,773 56,150
45 32,251 0 0 202 44,838 163,654
- - 205,000 -
- 476,280 667,284 882,414 4,324,547 3,103,594
0 0 476,280 667,284 882,414 4,529,547 3,103,594
$45 $32,251 $476,280 $667,284 $882,616 $4,574,385 $3,267,248
77
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, 2006
With Comparative Totals For The Year Ended December 31, 2005
401 Budgeted
Projects and
500 Capital Equipment 565 Street 406 Brekke 711 Water
Revolving Fund Revolving Reconstruction Park Memorial Tower Rental
Revenues:
Special assessments $7,552 $ -
Charges for services:
Connections charges - - _ _ -
Rents - - - - 23,630
Direct charges to developers - - - - -
Fines and forfeits - 3,500 - - -
Investment income 25,946 36,017 25,132 13 2,001
Refunds and reimbursements - 73,827 - - -
Donations and contributions - 126,025 - 100 -
Total revenues 33,498 239,369 25,132 113 25,631
Expenditures:
Public works:
Current:
Material and supplies - 7,002 - - -
Contractual services 12,452 101,663 - - -
Capital outlay - 162,842 - - -
Construction costs - - - - -
Total expenditures 12,452 271,507 0 0 0
Revenues over (under) expenditures 21,046 (32,138) 25,132 113 25,631
Other financing sources (uses):
Sale of capital assets 244,099 - - - -
Transfers in - 332,900 152,180 - -
Transfers out - - - - -
Total other financing sources (uses) 244,099 332,900 152,180 0 0
Net change in fund balance 265,145 300,762 177,312 113 25,631
Fund balance - January 1 458,382 733,219 510,826 237 31,942
Fund balance - December 31 $723,527 $1,033,981 $688,138 $350 $57,573
78
Statement 18
731 McKean 771 Sanitary 773 AAE -
Square Capital 733 Oakgrcen Sewer 772 Water Storm Sewer Totals Nonmajor Capital Project
Project Fund Avenue Utilities Connection Connection Connection Funds
2006 2005
$8,618 $15,001 $18,986 $50,157 $86,947
- - 141,351 400,370 238,420 780,141 33,060
- - - 23,630 22,865
105 140,504 - - - 140,609 6,919
- - - 3,500 -
- - 21,099 19,784 38,412 168,404 92,149
- - - 73,827 40,100
- - - - 126,125 750
105 140,504 171,068 435,155 295,818 1,366,393 282,790
- - - - 7,002 35
105 - - - 122,877 237,097 31,062
- - - - 162,842 -
204,456 - - 3,222 207,678 226,072
105 204,456 0 0 126,099 614,619 257,169
0 (63,952) 171,068 435,155 169,719 751,774 25,621
- - - 244,099 -
63,952 - - - 549,032 477,890
- (91,727) (9,625) (17,600) (118,952) (50,000)
0 63,952 (91,727) (9,625) (17,600) 674,179 427,890
0 0 79,341 425,530 152,119 1,425,953 453,511
- 396,939 241,754 730,295 3,103,594 2,650,083
$0 $0 $476,280 $667,284 $882,414 $4,529,547 $3,103,594
79
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 19
AGENCY FUNDS
December 31, 2006
With Comparative Totals For December 31, 2005
904 Boutwell's 905 McKean
902 Developer 903 Developer Landing Square Escrow
Deposit Fund Escrow Fund Escrow Fund Fund Totals - Agency Funds
2006 2005
Assets
Cash and investments $98,960 $69,318 $ - $8,900 $177,178 $339,690
Due from developers 8,934 - - - 8,934 22,111
Total assets $107,894 $69,318 $0 $8,900 $186,112 $361,801
Liabilities
Escrow deposits payable $ - $69,318 $ - $8,900 $78,218 $257,454
Accounts payable 6,729 - - - 6,729 12,420
Due to developers 101,165 - - - 101,165 91,927
Total liabilities $ 107,894 $69,318 $0 $8,900 $186,112 $361,801
80
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 20
AGENCY FUNDS
For The Year Ended December 31, 2006
Balance Balance
January 1, December 31,
2006 Additions Deletions 2006
902 Developer Deposit Fund
Assets:
Cash and investments $82,236 $98,960 $82,236 $98,960
Due from developers 22,111 8,934 22,111 8,934
Total assets $104,347 $107,894 $104,347 $107,894
Liabilities:
Accounts payable $12,420 $6,729 $12,420 $6,729
Due to developers 91,927 101,165 91,927 101,165
Total liabilities $104,347 $107,894 $104,347 $107,894
903 Developer Escrow Fund
Assets:
Cash and investments $15,200 $69,318 $15,200 $69,318
Liabilities:
Escrow deposits payable $15,200 $69,318 $15,200 $69,318
904 Boutwell's Landing Escrow Fund
Assets:
Cash and investments $90,000 $ - $90,000 $ -
Liabilities:
Escrow deposits payable $90,000 $ - $90,000 $ -
905 McKean Square Escrow Fund
Assets:
Cash and investments $152,254 $ - $143,354 $8,900
Liabilities:
Escrow deposits payable $152,254 $ - $143,354 $8,900
Total Agency
Assets:
Cash and investments $339,690 $168,278 $330,790 $177,178
Due from developers 22,111 8,934 22,111 8,934
Total assets $361,801 $177,212 $352,901 $186,112
Liabilities:
Escrow deposits payable $257,454 $69,318 $248,554 $78,218
Accounts payable 12,420 6,729 12,420 6,729
Due to developers 91,927 101,165 91,927 101,165
Total liabilities $361 $177,212 $352,901 $186,112
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STATISTICAL SECTION (UNAUDITED)
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CITY OF OAK PARK HEIGHTS, MINNESOTA
NET ASSETS BY COMPONENT Table I
Last Three Fiscal Years
(Accrual Basis of Accounting)
2004 2005 2006
Governmental activities:
Invested in capital assets, net of related debt $10,059,989 $9,928,521 $11,481,494
Restricted 1,192,681 856,611 899,708
Unrestricted 7,326,030 8,213,513 10,290,018
Total governmental activities net assets $18,578,700 $18,998,645 $22,671,220
Business -type activities:
Invested in capital assets, net of related debt $5,646,237 $5,985,350 $5,826,582
Restricted - - -
Unrestricted 834,827 1,108,069 1,382,163
Total business -type activities net assets $6,481,064 $7,093,419 $7,208,745
Primary government:
Invested in capital assets, net of related debt $15,706,226 $15,913,871 $17,308,076
Restricted 1,192,681 856,611 899,708
Unrestricted 8,160,857 9,321,582 11,672,181
Total primary government net assets $25,059,764 $26,092,064 $29,879,965
' City implemented GASB Statement No. 34 for the fiscal year ended December 31, 2004. Therefore, information for years
prior to 2004 is not available.
85
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN NET ASSETS Table 2
Last Three Fiscal Years Page 1 of 2
(Accrual Basis of Accounting)
2004 2005 2006
Expenses
Governmental activities:
General government $832,609 $882,800 $987,597
Public safety 1,155,243 1,210,179 1,226,042
Public works 602,111 511,137 755,989
Parks and recreation 123,737 138,378 152,899
Interest on long -term debt 67,365 55,695 43,965
Total govermmental activities expenses 2,781,065 2,798,189 3,166,492
Business -type activities:
Water 323,527 373,996 398,766
Sanitary sewer 517,595 560,876 661,367
Sanitation 167,258 34,150 65,149
Storm sewer 41,082 164,572 147,565
Total business -type activities expenses 1,049,462 1,133,594 1,272,847
Total primary government expenses $3,830,527 $3,931,783 $4,439,339
Program revenues
Governmental activities:
Charges for services:
Licenses and permits 304,594 365,512 306,266
Inspections - City of Bayport 50,337 84,719 -
Administrative - Enterprise Fund 90,860 94,140 64,465
Direct charges to developers 315,535 139,191 938,298
Connection charges - 18,326 780,141
Park fees - 22,952 1,004,240
Refunds and reimbursements 91,784 106,569 155,080
Other activities 95,523 144,559 116,793
Operating grants and contributions 68,358 88,229 74,105
Capital grants and contributions 212,635 62,686 165,397
Total governmental activities program revenues 1,229,626 1,126,883 3,604,785
Business -type activities:
Charges for services:
Water 388,198 423,876 502,407
Sanitary sewer 577,253 705,456 767,207
Sanitation 96,909 73,546 74,173
Storm sewer 70,878 96,859 97,266
Operating grants and contributions - - -
Capital grants and contributions 58,706 - -
Total business -type activities program revenues 1,191,944 1,299,737 1,441,053
Total primary government program revenues $2,421,570 $2,426,620 $5,045,838
86
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN NET ASSETS Table 2
Last Three Fiscal Years Page 2 of 2
(Accrual Basis of Accounting)
2004 2005 2006
Net (expense) revenue:
Governmental activities ($1,551,439) ($1,671,306) $438,293
Business -type activities 142,482 166,143 168,206
Total primary government net (expense) revenue (1,408,957) (1,505,163) 606,499
General revenues and other changes in net assets
Governmental activities:
General property taxes $1,979,288 $2,222,335 $2,417,014
Unrestricted grants and contributions 3,060 2,040 29,838
Investment earnings 199,737 258,614 425,160
Gain on sale of property - - 244,099
Miscellaneous 29,125 25,206 16,254
Transfers 90,423 (416,944) 101,917
Total governmental activities 2,301,633 2,091,251 3,234,282
Business -type activities:
Investment earnings 19,148 29,268 49,037
Transfers (90,423) 416,944 (101,917)
Total business -type activities (71,275) 446,212 (52,880)
Total primary government $2,230,358 $2,537,463 $3,181,402
Change in net assets:
Governmental activities $750,194 $419,945 $3,672,575
Business -type activities 71,207 612,355 115,326
Total primary government $821,401 $1,032,300 $3,787,901
( ' ) The City implemented GASB Statement No. 34 for the fiscal year ended December 31, 2004. Therefore, information for years
prior to 2004 is not available.
87
CITY OF OAK PARK HEIGHTS, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS Table 3
Last Three Fiscal Years
(Modified Accrual Basis of Accounting)
2004 2005 2006
General Fund:
Reserved -
Unreserved:
Designated for cash flow 1,147,000 1,237,000 1,409,000
Designated for employee benefits 133,961 141,533 169,633
Designated for contingencies 419,000 439,000 493,000
Undesignated 147,647 286,210 230,869
Total general find $1,847,608 $2,103,743 $2,302,502
All other governmental funds:
Reserved for debt service $454,694 $214,783 $717,829
Unreserved, reported in:
Special revenue funds 81,167 75,721 86,326
Debt service funds - - 47,315
Capital projects funds 5,381,734 6,107,908 8,022,588
Total all other governmental funds $5,917,595 $6,398,412 $8,874,058
( ' ) The City implemented GASB Statement No. 34 for the fiscal year ended December 31, 2004. Therefore, information for years
prior to 2004 is not available.
88
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS Table 4
Last Three Fiscal Years
2004 2005 2006
Revenues:
General property taxes $1,969,207 $2,218,906 $2,423,246
Special assessments 305,758 225,516 553,450
Intergovernmental 70,362 101,519 102,818
Licenses and permits 304,594 365,512 306,266
Charges for services 150,126 294,846 1,886,776
Fines and forfeits 78,274 69,850 84,730
Earnings on investments 199,737 258,614 425,160
Direct charges to developers 374,241 139,191 938,298
Refunds and reimbursements 109,958 125,405 155,080
Other 20,327 10,117 136,514
Total revenues 3,582,584 3,809,476 7,012,338
Expenditures:
Current:
General government 793,871 851,437 941,875
Public safety 1,119,533 1,172,803 1,180,441
Public works 296,997 208,848 423,010
Parks and recreation 88,180 99,980 107,071
Capital outlay 50,104 21,000 443,822
Debt service:
Principal retirement 400,000 395,000 190,000
Interest 68,334 56,710 44,535
Construction /acquisition costs 622,218 358,344 1,353,195
Total expenditures 3,439,237 3,164,122 4,683,949
Revenues over (under) expenditures 143,347 645,354 2,328,389
Other financing sources (uses):
Sale of capital assets - - 244,099
Transfers in 178,923 180,098 190,417
Transfers out (88,500) (88,500) (88,500)
Total other financing sources (uses) 90,423 91,598 346,016
Net change in fimd balance $233,770 $736,952 $2,674,405
Debt service as a percentage of noncapital expenditures 16.9% 16.2% 8.1%
Debt service as percentage of total expenditures 13.6% 14.3% 5.0%
( ' ) The City implemented GASB Statement No. 34 for the fiscal year ended December 31, 2004. Therefore, information for years
prior to 2004 is not available.
89
CITY OF OAK PARK HEIGHTS, MINNESOTA
TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY Table 5
Last Ten Fiscal Years
Fiscal Less:
Year Commercial/ Total Fiscal Adjusted Total Estimated Tax Capacity
Ended Residential Industrial Public All Tax Disparity Tax Capacity Direct Tax Market as a Percent
December 31, Property Property Utility Other Capacity Contribution Value Rate Value of EMV
1996 Information Not Available $6,541,145 $755,512 $5,785,633 23.781 $214,227,300 113.06%
1997 Information Not Available 6,728,690 750,991 5,977,699 22.898 223,205,500 112.56%
1998 Information Not Available 6,108,080 663,765 5,444,315 27.141 238,211,800 112.19%
1999 1,847,806 1,778,218 2,559,708 169,024 6,354,756 547,378 5,807,378 23.728 274,454,600 109.43%
2000 1,978,348 1,976,203 2,560,189 176,864 6,691,874 784,872 5,907,002 23.620 295,318,900 113.29%
2001 2,381,346 2,360,184 2,486,826 141,694 7,383,123 918,384 6,464,739 23.692 324,531,100 114.21%
2002 2,126,118 1,554,221 1,399,706 83,395 5,163,440 611,097 4,552,343 41.741 349,905,800 113.42%
2003 2,390,918 2,058,269 1,430,734 94,622 5,974,543 657,651 5,316,892 35.799 406,640,800 112.37%
2004 2,603,244 2,303,461 1,417,841 121,381 6,445,927 798,048 5,647,879 34.382 447,871,200 114.13%
2005 2,907,926 2,526,858 1,378,249 105,907 6,918,940 954,578 5,964,362 36.488 485,026,700 116.00%
2006 Information Not Available 7,485,961 1,037,753 6,448,208 38.377 539,357,100 116.09%
2007 3,318,052 3,331,910 1,733,703 88,073 8,471,738 1,115,215 7,356,523 35.731 579,089,800 115.16%
Source: Continuing Disclosure Document
(1)Thc components of tax capacity prior to 1999 is not available.
90
CITY OF OAK PARK HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES Table 6
Last Ten Fiscal Years
City Overlapping Rates
Fiscal Direct School Other
Year Rate County District Districts Total
1997 22.270 27.867 61.762 10.193 122.092
1998 26.363 28.546 58.155 11.065 124.129
1999 22.895 30.016 54.022 15.549 122.482
2000 23.620 28.129 50.434 14.805 116.988
2001 23.692 26.016 50.373 17.267 117.348
2002 41.741 34.395 28.407 11.934 116.477
2003 35.799 33.303 26.566 12.067 107.735
2004 34.382 31.201 18.746 10.791 95.120
2005 36.488 28.599 19.393 9.358 93.838
2006 36.136 26.968 19.471 7.016 89.591
Source: Continuing Disclosure Document, Washington County website.
91
CITY OF OAK PARK HEIGHTS, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS Table 7
Current Year and Nine Years Ago
1 4
11 ,
2006 1997
Percentage Percentage
Taxable of Total City Taxable of Total City
Capacity Capacity Capacity Capacity
Taxpayer Value Rank Value Value Rank Value
Xeel Energy ($1,600,747 1 21.38% $4,068,608 1 66.18%
SC Mall LLC 367,420 2 4.91% 0 0.00%
Prudential Insurance Co. 213,522 3 2.85% 0 0.00%
OPH Pat LLC & OPH Val LLC 199,500 4 2.66% 0 0.00%
Menard Inc. 185,998 5 2.48% 0 0.00%
VSSA Housing 290,608 6 3.88% 0 0.00%
Wal -Mart Stores, Inc. 147,879 7 1.98% 141,800 4 2.31%
VSSA McKean West LLC 220,682 8 2.95% 0 0.00%
W.A.T.E. Enterprises Inc. 108,224 9 1.45% 0 0.00%
Raduenz Dealership 83,328 10 1.11% 0 0.00%
Total $3,417,908 45.66% $4,210,408 68.49%
Total All Property $7,485,948 $6,147,600
Source: Continuing Disclosure Document
92
CITY OF OAK PARK HEIGHTS, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS Table 8
Last Ten Fiscal Years
Fiscal Taxes Collected Within The Collections
Year Levied Fiscal Year of the Levy in Total Collections to Date
Ended For The Percentage Subsequent Percentage
December 31, Fiscal Year (1) Amount of Levy Years Amount of Levy
1997 $1,394,918 $1,386,466 99.39%
(I )Information Not Available
1998 1,524,047 1,541,155 101.12%
1999 1,409,400 1,394,993 98.98% 13,195 1,408,188 99.91%
2000 1,440,200 1,426,390 99.04% 13,315 1,439,705 99.97%
2001 1,588,435 1,566,938 98.65% 18,162 1,585,100 99.79%
2002 1,967,579 1,904,488 96.79% 16,739 1,921,227 97.64%
2003 1,993,003 1,891,046 94.88% 23,685 1,914,731 96.07%
2004 1,965,536 1,938,726 98.64% 23,477 1,962,203 99.83%
2005 2,208,178 2,176,290 98.56% 22,853 2,199,143 99.59%
2006 2,395,044 2,363,192 98.67% - 2,363,192 98.67%
1. The levy amount presented is after deduction for Market Value Homestead Credit.
93
CITY OF OAK PARK HEIGHTS, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE Table 9
Last Ten Fiscal Years
Governmental Activities
General Percentage
Fiscal Obligation Improvement of Tax Per
Year Bonds Bonds Total Capacity Capita
1997 $1,055,000 $950,000 $2,005,000 29.80% 497
1998 950,000 2,830,000 3,780,000 61.89% 948
1999 835,000 2,570,000 3,405,000 53.58% 848
2000 715,000 2,300,000 3,015,000 45.05% 762
2001 615,000 2,040,000 2,655,000 35.96% 668
2002 510,000 1,760,000 2,270,000 43.96% 529
2003 375,000 1,485,000 1,860,000 31.13% 430
2004 225,000 1,23 5,000 1,460,000 22.65% 315
2005 65,000 1,000,000 1,065,000 15.39% 228
2006 - 875,000 875,000 11.69% 188
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
There is no business -type activity long -term debt.
94
CITY OF OAK PARK HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 10
December 31, 2006
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable* Debt
Debt repaid with property taxes:
Independent School District No. 834 51,720,000 9.04% $4,676,403
Washington County 59,990,000 2.67% 1,602,691
Subtotal - overlapping debt 6,279,094
City direct debt 875,000 100.00% 875,000
Total direct and overlapping debt $7,154,094
Sources: Continuing Disclosure Document
95
CITY OF OAK PARK HEIGHTS, MINNESOTA
LEGAL DEBT MARGIN INFORMATION Table 11
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2006
Market value $539,357,100
Debt limit (2% of market value) 10,787,142
Debt applicable to limit:
General obligation bonds 875,000
Less: Amount set aside for repayment
of general obligation debt (875,000)
Total net debt applicable to limit 0
Legal debt margin $10,787,142
Legal Debt Margin Calculation for Fiscal Years 1997 Through 2005
Net Debt Legal Amount of Debt
Fiscal Debt Applicable to Debt Applicable to
Year Limit Limit Margin Debt Limit
1997 $4,464,110 $40,230 $4,423,880 0.90%
1998 4,764,236 18,150 4,746,086 0.38%
1999 5,489,092 (6,193) 5,495,285 0.00%
2000 6,489,918 - 6,489,918 0.00%
2001 6,491,622 - 6,491,622 0.00%
2002 6,998,116 - 6,998,116 0.00%
2003 8,132,816 - 8,132,816 0.00%
2004 8,957,424 - 8,957,424 0.00%
2005 9,700,534 - 9,700,534 0.00%
96
CITY OF OAK PARK HEIGHTS, MINNESOTA
PLEDGED REVENUE COVERAGE Table 12
Last Ten Fiscal Years
Improvement Bonds
Special
Fiscal Assessment Debt Service
Year Collections Principal Interest Coverage
1997 $162,433 $190,000 $97,790 0.564
1998 106,924 110,000 44,095 0.694
1999 414,520 1,520,000 133,106 0.251
2000 332,190 270,000 109,403 0.876
2001 311,840 850,000 133,352 0.317
2002 247,618 280,000 79,343 0.689
2003 239,390 275,000 69,225 0.695
2004 197,940 250,000 60,012 0.638
2005 204,585 235,000 51,387 0.714
2006 156,905 190,000 44,535 0.669
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
( ' ) In addition to special assessment collections, the City's improvement bonds are also funded by transfers from the
connection charge finds.
97
CITY OF OAK PARK HEIGHTS, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS Table 13
Last Ten Fiscal Years
Per
Capita
Fiscal Unemployment Personal Personal
Year Population Rate (2) Income Income
1997 4,033 (1)
1998 3,986 (1)
1999 4,015 (1)
2000 3,957 (1)
2001 3,977 2.60%
Information Not Available
2002 4,291 3.60%
2003 4,329 4.10%
2004 4,633 4.00%
2005 4,664 3.40%
2006 (1) (1)
Sources: Metropolitan Council (population), Continuing Disclosure Document (unemployment rate)
(i) Information Not Available
(2) Washington County rate
98
CITY OF OAK PARK HEIGHTS, MINNESOTA
PRINCIPAL EMPLOYERS Table 14
Current Year and Nine Years Ago
2006 1999
Employer Product Service Employees Employees
Andersen Corporation Window Manufacturer 600
State of Minnesota Correctional Facility Government Correctional Institution 297 350
Wal -Mart Stores, Inc. Retail 225 150
ISD No. 834, Stillwater Public Education 220 163
Routson Motors Auto Dealership /Service Repair 190 -
Kohl's Retail 155 -
Stillwater Ford Auto Dealership /Service Repair 129 -
Stillwater Motors Auto Dealership /Service Repair 105 -
Menard's Inc. Retail Lumber /Hardware 100 -
VSSA - Boutwell's Landing /McKean Square Senior Community Housing 95 -
Herberger's Department Store Retail Store - 125
Xcel Energy Electric Utility - 105
Dahl Tech, Inc. Plastics Products - 30
City of Oak Park Heights City Government - 24
Schwantes Heating & Air Conditioning Sheet Metal Fabrication - 16
Total 2,116 963
Source: Continuing Disclosure Document
( ' ) Principal employer information prior to 1999 is not available
99
CITY OF OAK PARK HEIGHTS, MINNESOTA
FULL -TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION /PROGRAM
Last Ten Fiscal Years
Full -Time Equivalent Employees as of December 31,
Function/Program 1997 1998 1999
General government:
Administration 3 3 3
Finance 2 2 3
Building inspections 3 3 3
Public safety 10 10 10
Public works 3 3 3
Total 21 21 22
Source: City Finance Department
100
Table 15
Full -Time Equivalent Employees as of December 31,
2000 2001 2002 2003 2004 2005 2006
3 3 3 2 2 2 2
3 3 3 3 3 3 3
3 3 3 2 2 2 2
10 10 10 10 10 10 10
3 3 3 3 4 4 4
22 22 22 20 21 21 21
101
CITY OF OAK PARK HEIGHTS, MINNESOTA
OPERATING INDICATORS BY FUNCTION /PROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program 1997 1998 1999
Police:
Physical arrests 327 289 245
Parking violations (a) (a) 114
Traffic violations (a) (a) 593
Fire:
Fire and related calls (a) 44 52
Medical calls (a) 62 82
Building inspection:
Permits issued:
Residential 39 32 62
Commercial 8 5 35
Total permit valuation $17,432,456 $7,738,358 $13,439,362
Water:
Connections 1,057 1,122 1,152
Average daily demand (thousands of gallons) 546,000 567,000 577,000
Sewer:
Connections 1,101 1,173 1,205
Sources: Various City departments.
(a)Information not available
102
Table 16
Fiscal Year
2000 2001 2002 2003 2004 2005 2006
221 256 263 237 308 251 240
162 218 155 145 118 123 124
728 859 611 712 1,023 1,089 738
55 61 108 122 113 115 119
107 139 174 164 200 251 302
13 46 54 44 48 2 11
6 73 75 13 11 13 15
$19,485,026 $5,799,263 $11,651,369 $19,878,493 $18,043,522 $12,732,475 $36,975,066
1,219 1,201 1,198 1,212 1,259 1,277 1,289
570,000 600,000 576,000 645,000 611,000 614,000 676,000
1,281 1,288 1,281 1,273 1,235 1,251 1,264
103
CITY OF OAK PARK HEIGHTS, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION /PROGRAM
Last Nine Fiscal Years
Fiscal Year
Function/Program 1998 1999 2000
Police:
Stations I 1 1
Squad cars 7 7 7
Fire stations
Other public works:
Miles of paved streets 14.0 14.0 22.0
Streetlights 261 261 265
Traffic signals 2 2 2
Parks and recreation:
Parkland acreage 80 80 80
Number of parks 4 4 4
Water:
Water mains (miles) 24.3 25.4 25.4
Fire hydrants 287 299 299
Storage capacity (thousands of gallons) 750 750 750
Wastewater:
Sanitary sewers (miles) 20.3 21.9 21.9
Stone sewers (miles) 10.6 11.8 11.8
Sources: Various City departments.
104
Table 17
Fiscal Year
2001 2002 2003 2004 2005 2006
1 1 1 1 1 1
7 7 7 7 6 6
22.0 22.0 22.0 22.0 22.0 22.0
265 265 330 392 392 392
2 2 2 2 2 2
80 105 105 105 105 105
4 4 4 4 4 4
25.5 25.5 26.6 26.6 26.6 26.6
302 302 316 316 316 316
750 750 750 750 750 750
21.9 21.9 21.9 23.3 23.3 23.3
11.8 12.0 12.5 12.5 12..5 12.5
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