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HomeMy WebLinkAboutAnnual Financial Report♦ a t. ANNUAL FINANCIAL REPORT December 31, 2007 - This page intentionally left blank - CITY OF OAK PARK HEIGHTS, MINNESOTA TABLE OF CONTENTS FINANCIAL SEC'T'ION Independent Auditor's Report 7 Management's Discussion and Analysis 11 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Assets Statement 1 25 Statement of Activities Statement 2 26 Fund Financial Statements: Balance Sheet - Governmental Funds Statement 3 28 Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds Statement 4 30 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds Statement 5 32 Statement of Net Assets - Proprietary Funds Statement 6 33 Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds Statement 7 34 Statement of Cash Flows - Proprietary Funds Statement 8 35 Statement of Fiduciary Net Assets - Agency Funds Statement 9 36 Notes to Financial Statements 37 Required Supplementary Information: Budgetary Comparison Schedule - General Fund Statement 10 61 Budgetary Comparison Schedule - Note to RSI 66 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 84 Subcombining Statement of Changes in Assets and Liabilities Statement 20 85 Financial Trends: Net Assets by Component - Last Four Fiscal Years Table 1 89 Changes in Net Assets - Last Four Fiscal Years Table 2 90 Fund Balances, Governmental Funds - Last Four Fiscal Years Table 3 92 Changes in Fund Balances, Governmental Funds - Last Four Fiscal Years Table 4 93 Revenue Capacity: Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 94 Direct and Overlapping Property Tax Capacity Rates Table 6 95 Principal Property Taxpayers Table 7 96 Property Tax Levies and Collections Table 8 97 Debt Capacity: Ratios of Outstanding Debt by Type Table 9 98 Direct and Overlapping Governmental Activities Debt Table 10 99 Legal Debt Margin Information Table 11 100 Pledged Revenue Coverage Table 12 101 Demographic and Economic: Demographic and Economic Statistics Table 13 102 Principal Employers Table 14 103 Operating Information: Full -Time Equivalent City Government Employees By Function /Program Table 15 104 Operating Indicators by Function/Program Table 16 106 Capital Asset Statistics by Function/Program Table 17 108 � o liftfolZYMMOCS7,111 - This page intentionally left blank - CITY OF OAK PARK HEIGHTS, MINNESOTA ELECTED AND APPOINTED OFFICIALS December 31, 2007 Term Expires Mayor: David Beaudet December 31, 2008 Councilmembers: Les Abrahamson December 31, 2010 Mark Swenson December 31, 2010 Jack Doerr December 31, 2008 Mary McComber December 31, 2008 Administrator: Eric Johnson Appointed Deputy Clerk/Finance Director: Judy Holst Appointed -'This page intentionally left blank - ♦ i - This page intentionally left blank - AM k 7 ""„I Ir V Xi �: °, - This page intentionally left blank - In accordance with Government Auditing Standards, we have also issued our report dated April 21, 2008 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. HLB TAUTGES REDPATH, LTD. White Bear Lake, Minnesota April 21, 2008 0 - This page intentionally left blank - m 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, 2007. Financial Hl!�hli2hts The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $31,074,912 (Net assets). Of this amount, $12,306,542 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors in accordance with the City's fund designations and fiscal policies. The City's total net assets increased by $1,233,969. As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $11,557,727. At the end of the current fiscal year the general fund balance was $2,515,620 of which $2,476,000 is designated. The General Fund balance increased by $213,118 as a result of positive budget variances in revenues and expenditures. The City was able to transfer an additional $124,000 from the General Fund to the Budgeted Projects Fund for capital improvements for streets, parks, civil defense, and general government. The Sanitary Sewer Connection Charge Fund, Water Connection Charge Fund and Storm Sewer Connection Charge Fund collected $34,595 of connection charges in the year 2007. Three of the four enterprise fund operations reported net operating income in 2007. M 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 funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resource, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financial requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long -term impact of the City's near term financial decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures and change in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains five individual major governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balance for the following major funds: ® General Fund • G.O. Improvement Bonds of 1998 — Debt Service Fund • Water Tower Rehabilitation— 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. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government —wide and fund financial statements. The notes to the financial statements can be found following Statement 9. Other information. The combining statements referred to earlier in connection with non - major governmental funds are presented immediately following the required supplementary information on budgetary comparisons. Combining and individual fund statements and schedules are presented as Statements I I 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 $31,074,912 at the close of the most recent fiscal year. The largest portion of the City's net assets ($18,154,200 or 58.4% 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. Ell Management's Discussion and Analysis City of Oak Park Heights' Net Assets Governmental Activities Business -Type Activities 2007 2006 2007 2006 Totals 2007 2006 Current and other assets $11,985,165 $18,410,951 $1,444,178 $1,468,742 $13,429,343 $19,879,693 Capital assets 12,549,071 5,756,494 6,355,129 5,826,582 18,904,200 11,583,076 Total assets $24,534,236 $24,167,445 $7,799,307 $7,295,324 $32,333,543 $31,462,769 Long -term liabilities outstanding $988,019 $946,087 $63,872 $22,316 $1,051,891 $968,403 Other liabilities 181,998 550,138 24,742 64,263 206,740 614,401 Total liabilities $1,170,017 $1,496,225 $88,614 $86,579 $1,258,631 $1,582,804 Net assets: Invested in capital assets, net ofrelated debt $11,799,071 $11,481,494 $6,355,129 $5,826,582 $18,154,200 $17,308,076 Restricted 614,170 899,708 - - 614,170 899,708 Unrestricted 10,950,978 10,290,018 1,355,564 1,3 82,163 12,306,542 11,672,181 Total net assets $23,364,219 $22,671,220 $7,710,693 $7,208,745 $31,074,912 $29,879,965 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 $692,999 during 2007. Key elements of this increase are as follows: City of Oak Park Heights' Changes in Net Assets Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: General property taxes Grants and contributions not restricted to specific programs Gain on sale of capital assets Other revenue Unrestricted investment earnings Total revenues Expenses: General government Public safety Public works Parks and recreation Interest on long -term debt Water Sanitary sewer Storm sewer Sanitation Total expenses Increase in net assets before transfers Transfers Governmental Activities Business -Type Activities Totals 540,970 2007 2006 2007 2006 2007 2006 7,208,745 7 29,879,965 $755,344 $3,365,283 $1,333,627 $1,441,053 $2,088,971 $4,806,336 142,879 74,105 Net assets - January 1, as restated 22,671,220 142,879 74,105 11,324 165,397 26,092,064 Netassets - December 31 11,324 165 2,730,994 2,417,014 $31,074,912 $29,879,965 2,730,994 2,417,014 111,090 29,838 111,090 29,838 9,237 244,098 9,237 244,098 27 16,255 - - 27,626 16,255 532,827 425,160 60,103 49,037 592,930 474,197 4,321,321 6,737,150 1,393,730 1,490,090 5,715,051 8,227,240 1,046,676 987,597 - - 1,046,676 987,597 1 1,226,042 1,234,769 1,226,042 796,025 755,989 796,025 755,989 184,008 152,899 184,008 152,899 37,255 43,965 - - 37,255 43,965 - - 387,766 398,766 387,766 398,766 606,458 661,367 606,458 661,367 34,277 65,149 34,277 65,149 - - 153,848 147,565 153,848 147,565 3,298,733 3,166,492 1,182,349 1,272,847 4,481,082 4,439,339 1,022,588 3,570,658 211,381 217,243 1,233,969 3 (329,589) 101,917 329,589 (101,917) - Change in net assets 692,999 3,672,575 540,970 115,326 1,233,969 3,787,901 Netassets - January 1, as previously reported 22,671,220 18,998,645 7,208,745 7 29,879,965 26,092,064 Prior period adjustment - - (39,022) - (39,022) Net assets - January 1, as restated 22,671,220 18,998,645 7,169,723 7,093,419 29,840,943 26,092,064 Netassets - December 31 $23,364,219 $22,671,220 $7,710,693 $7,208,745 $31,074,912 $29,879,965 I Management's Discussion and Analysis Below are specific graphs which provide comparisons of the governmental activities revenues and expenditures: Governmental Activities - Revenues Unrestricted Gain on sale of investment camings Operating grants 12 % and contributions capital asset 3 % Charges for services 17 Other ' r, Property taxes 63% contributions I% Governmental Activities - Expenses Interest on Lon Parks and Recreation Tenn Debt I% General Government 6% 32% Public safety 37% 17 Management's Discussion and Analysis Business -Type Activities Business -type activities increased net assets by $540,970 during 2007. Below are graphs showing the business -type activities revenue and expense comparisons: Business -Type Activities - Revenues Unrestricted I nvcsnnent Eamings 4% Champs for Services 96% r 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 $11,557,727. The general fund increased by $213,118 in 2007, which was due primarily to revenues exceeding budget expectations and expenditures less than budget expectations. Revenues related to charges for services and interest earned contributed to the revenue increase. The G.O. Improvement Bonds of 1998 debt service fund decreased by ($52,566) during 2007. The Water Tower Rehabilitation capital project fund was established in 2007 for the purpose of repairing and rehabilitating the City's two existing water towers. Rehabilitation of Tower No. 1 was completed in 2007. Tower No. 2 is anticipated to be rehabilitated in 2010. The Renewal and Replacement capital project fund increased by $314,043 during 2007. This fund receives an amival transfer from the proprietary funds in an amount equal to depreciation expense. The Park Development capital project fund decreased by $284,055 due to development of Autumn Hills Park building and park trails. The nonmajor special revenue funds increased by $14,634 during 2007. The nonmajor debt service funds decreased by ($47,315) during 2007. The nonmajor capital project funds increased by $438,121 during 2007. Proprietary funds. The City's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Uwe Management's Discussion and Analysis Budtetary Hi2hlij4hts 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, 2007, amounts to $18,904,199 (net of accumulated depreciation). This investment in capital assets includes land, buildings and structures, infrastructure, machinery and equipment and furniture and fixtures. City of Oak Park Heights' Capital Assets (Net of Depreciation) Governmental activities capital assets - net $12,356,494 $2,288,349 ($2,095,772) $12,549,071 m Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated: Land $1,894,094 $294,837 $ - $2,188,931 Construction in progress 1,355,240 916,975 (2,095,772) 176,443 Total capital assets, not being depreciated 3,249,334 1,211,812 (2,095,772) 2,365,374 Capital assets, being depreciated: Buildings and structures 1,118,146 465,885 - 1,584,031 Other improvements 886,154 - - 886,154 Machinery and equipment 442,583 107,127 (48,997) 500,713 Furniture and fixtures 261,190 - 261,190 Infrastructure 11,234,100 954,051 - 12,188,151 Total capital assets, being depreciated 13,942,173 1,527,063 (48,997) 15,420,239 Less accumulated depreciation for: Buildings and structures 423,829 23,706 447,535 Other improvements 137,436 12,250 149,686 Machinery and equipment 287,539 39,495 (48,997) 278,037 Furniture and fixtures 105,707 19,903 - 125,610 Infrastructure 3,880,502 355,172 - 4,235,674 Total accumulated depreciation 4,835,013 450,526 (48,997) 5,236,542 Total capital assets being depreciated - net 9,107,160 1,076,537 0 10,183,697 Governmental activities capital assets - net $12,356,494 $2,288,349 ($2,095,772) $12,549,071 m Management's Discussion and Analysis Business -type activities: Capital assets, not being depreciated: Land Total capital assets, not being depreciated Capital assets, being depreciated: Buildings and structures Machinery and equipment Distribution and collection systems Total capital assets, being depreciated Less accumulated depreciation: Buildings and structures Machinery and equipment Distribution and collection systems Less accumulated depreciation Total capital assets being depreciated - net Business -type activities capital assets - net Beginning Ending Balance Increases Decreases Balance $60,000 $ - $ - $60,000 60,000 0 0 60,000 1,320,334 386,368 - 1,706,702 241,422 11,766 (64) 253,124 7,022,137 326,713 (14,000) 7,334,850 8,583,893 724,847 (14,064) 9,294,676 522,482 30,072 - 552,554 122,050 11,944 (64) 133,930 2,172,779 140,284 - 2,313,063 2,817,311 182,300 (64) 2,999,547 5,766,582 542,547 (14,000) 6,295,129 $5,826,582 $542,547 ($14,000) $6,355,129 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 $750,000, a decrease of $125,000 from 2006. Additional long -term debt in the amount of $251,715 for compensated absences was also outstanding at the end of 2007. City of Oak Parr Heights' Outstanding Debt General obligation improvement bonds and compensated absences: Governmental Activities 2007 2006 Business -Type Activities Totals 2007 2006 2007 2006 General Obligation Bonds $750,000 $875,000 $ - $ - $750,000 $875,000 Compensated absences 225,873 207,449 25,842 23,609 251,715 231,058 Total $975,873 $I,082,449 $25,842 $23,609 $1,001,715 $1,106,058 21 Management's Discussion and Analysis State statutes limit the amount of general obligation debt a Minnesota city may issue to 2% of total estimated market value. The current debt limitation for the City is $11,292,059. Of the City's outstanding debt, none is counted within the statutory limitation. Additional information on the City's long -term debt can be found in Note 5. Requests for information. This financial report is designed to provide a general overview of the City's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, 14168 Oak Park Boulevard, Oak Park Heights, Minnesota 55082 -2007. 22 23 -This page intentionally left blank - MI CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT OF NET ASSETS December 31, 2007 Statement I Net assets Invested in capital assets, net of related debt 11,799,071 Primary Government 17,308,076 Restricted for: Governmental Business -Type Totals Debt service Assets: Activities Activities 2007 2006 Cash and investments $11,304,644 $1,040,675 $12,345,319 $12,128,500 Accrued interest 372,254 42,066 414,320 355,497 Accounts receivable - net 8,983 331,750 340,733 268,129 Due from other governmental units 43,147 - 43,147 45,193 Due from developers 6,427 - 6,427 196,471 Prepaid items - 29,687 29,687 26,845 Taxes receivable: Delinquent 82,095 - 82,095 38,831 Due from County 13,708 - 13,708 31,466 Special assessments receivable 153,907 - 153,907 188,761 Capital assets (net of accumulated depreciation): Land 2,188,931 60,000 2,248,931 1,954,094 Building and structures 1,136,496 1,154,148 2,290,644 1,492,169 Other improvements 736,468 - 736,468 748,718 Machinery and equipment 222,676 119,194 341,870 274,416 Furniture and fixtures 135,580 - 135,580 155,483 Infrastructure 7,952,477 5,021,787 12,974,264 12,202,956 Construction in progress 176,443 - 176,443 1,355,240 Total assets 24,534,236 7 32,333,543 31,462,769 Liabilities: Cash overdraft - - - 156,559 Accounts payable 158,729 52,342 211,071 122,262 Salaries payable 8,732 590 9,322 5,265 Contracts payable 2,390 - 2,390 182,309 Due to other governmental units 1,471 9,840 11,311 7,210 Due to developers 20,114 - 20,114 - Accrued interest payable 2,708 - 2,708 3,141 Compensated absences payable: Due within one year 43,875 1,100 44,975 12,655 Due in more than one year 181,998 24,742 206,740 218,403 Bonds payable: Due within one year 750,000 - 750,000 125,000 Due in more than one year - - - 750,000 Total liabilities 1,170,017 88,614 1,258,631 1,582,804 Net assets Invested in capital assets, net of related debt 11,799,071 6,355,129 18,154,200 17,308,076 Restricted for: Debt service 614,170 - 614,170 694,708 Autumn Hills Park - - - 205,000 Unrestricted 10,950,978 1,355,564 12,306,542 11,672,181 Total net assets $23,364,219 $7,710,693 $31,074,912 $29,879,965 The accompanying notes are an integral part of these financial statements. 25 CITE' OF OAK PARK HEIGHTS, MINNESO'T'A STATEMENT OF ACTIVITIES For The Year Ended December 31, 2007 Functions/Programs Primary government: Governmental activities: General government Public safety Public works Parks and recreation Interest on long -term debt Total governmental activities Business -type activities: Water Sanitary sewer Storm sewer Sanitation Total business -type activities Total primary government Expenses $1,046,676 1,234,769 796,025 184,008 37,255 3,298,733 387,766 606,458 34,277 153,848 1,182,349 $4,481,082 The accompanying notes are an integral part of these financial statements. Charges For Services $140,292 295,384 319,668 755,344 482,100 679,821 73,942 97,764 1,333,627 $2,088,971 N Statement 2 The accompanying notes are an integral part of these financial statements. 27 Net (Expense) Revenue and Program Revenues Changes in Net Assets Operating Capital Primary Government Grants and Grants and Governmental Business -Type Totals Contributions Contributions Activities Activities 2007 2006 ($906,384) $ - ($906,384) ($902,282) 77,521 - (861,864) - (861,864) (697,629) 583 11,324 (464,450) - (464,450) 1,105,403 64,775 - (119,233) - (119,233) 976,766 - - (37,255) - (37,255) (43,965) 142,879 11,324 (2,389,186) 0 (2,389,186) 438,293 - - - 94,334 94,334 103,641 - - - 73,363 73,363 105,840 - - - 39,665 39,665 9,024 - - - (56,084) (56,084) (50,299) 0 0 0 151,278 151,278 168,206 $142,879 $11,324 (2,389,186) 151,278 (2,237,908) 606,499 General revenues: General property taxes 2,730,994 - 2,730,994 2,417,014 Grants and contributions not restricted to specific programs 111,090 - 111,090 29,838 Unrestricted investment earnings 532,827 60,103 592,930 474,197 Gain on sale of capital assets 9,237 - 9,237 244,099 Other 27,626 - 27,626 16,254 Transfers (329,589) 329,589 - - Total general revenues and transfers 3,082,185 389,692 3,471,877 3,181,402 Change in net assets 692,999 540,970 1,233,969 3,787,901 Net assets - beginning, as previously reported 22,671,220 7,208,745 29,879,965 26,092,064 Prior period adjustment - (39,022) (39,022) - Net assets - beginning, as restated 22,671,220 7,169,723 29,840,943 26,092,064 Net assets - ending $23,364,219 $7,710,693 $31,074,912 $29,879,965 The accompanying notes are an integral part of these financial statements. 27 CI'T'Y OF OAK PARK HEIGHTS, MINNESOTA BALANCESHEET GOVERNMENTAL FUNDS December 31, 2007 Liabilities and Fund Balances 525 G.O. Liabilities: Improvement Bonds Cash overdraft $ _ of 1998 Debt Accounts payable General Fund Service Fund Assets 8,732 _ Cash and investments $2,552,094 $442,806 Accrued interest receivable 65,086 17,457 Accounts receivable - net 3,016 - Due from other governmental units 43,147 - Due from developers _ _ Interfund loan receivable _ _ Taxes receivable: Delinquent 82,095 - Due from county 13,708 - Special assessments receivable - 153,907 Total assets $2,759,146 $614,170 Liabilities and Fund Balances Liabilities: Cash overdraft $ _ $ _ Accounts payable 151,228 - Salaries payable 8,732 _ Contracts payable _ _ Due to other governmental units 1,471 - Due to developers _ _ Interfund loan payable _ _ Deferred revenue 82,095 153,907 Total liabilities 243,526 153,907 Fund balance: Reserved - 460,263 Unreserved: Designated reported in General Fund 2,476,000 - Designated reported in Special Revenue Funds _ _ Designated reported in Capital Project Funds _ _ Undesignated reported in General Fund 39,620 - Undesignated reported in Debt Service Fund _ _ Undesignated reported in Capital Project Funds _ _ Total fund balance 2,515,620 460,263 Total liabilities and fund balance $2,759,146 $614,170 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 Iiabilities, 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. 0 Statement 3 734 Water Tower Rehabilitation 710 Renewal and Replacement Capital Project Fund Other Governmental Funds Total Governmental Funds 405 Park Development 2007 2006 $9,995 $3,138,976 $467,021 $4,693,752 $11,304,644 $10,996,187 1,416 104,051 20,654 163,590 372,254 318,697 - - - 5,967 8,983 6,907 - - - - 43,147 33,631 - - - 6,427 6,427 196,471 - - - 225,000 225,000 - - - - - 82,095 38,831 - - - 13,708 31,466 - - - - 153,907 188,761 $11,411 $3,243,027 $487,675 $5,094,736 $12,210,165 $11,810,951 $ - $ - $ - $ - $ - $156,559 1,224 - 283 5,994 158,729 68,968 - - - - 8,732 2,172 - - 2,390 - 2,390 182,309 - - - - 1,471 627 - - - 20,114 20,114 - 225,000 - - - 225,000 - - - - - 236,002 223,756 226,224 0 2,673 26,108 652,438 634,391 - - - - 460,263 717,829 - - - - 2,476,000 2,071,633 - - - 100,960 100,960 86,326 - 3,243,027 485,002 4,967,668 8,695,697 8,022,588 - - - - 39,620 230,869 - - - - - 47,315 (214,813) - - - (214,813) - (214,813) 3,243,027 485,002 5,068,628 11,557,727 11,176,560 $11,411 $3,243,027 $487,675 $5,094,736 $12,210,165 $11,810,951 $11,557,727 $11,176,560 12, 549,071 12,3 56,494 236,002 223,756 (75 _- (875,000) (225,873) (207,449) (2,708) (3,141) $23,364,219 $22,671,220 The accompanying notes are an integral part of these financial statements 29 525 G.O. Improvement Bonds of 1998 Debt General Fund Service Fund Revenues: General property taxes $2,687,730 Special assessments - Licenses and permits 155,820 Intergovernmental 188,594 Charges for services 132,557 Direct charges to developers - Fines and forfeits 66,189 Investment income 93,957 Refunds and reimbursements 91,047 Donations and contributions 600 Miscellaneous - Total revenues 3.416.494 Expenditures: Current: General government 1,002,241 Public safety 1,186 355 Public works 192,790 Parks and recreation 137,427 Capital outlay _ Debt service: Principal retirement - Interest and other - Construction costs - Total expenditures 2,518,813 Revenues over (under) expenditures 897,6 Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - January 1 Fund balance - December 31 9,237 (693,800) (684,563) 213,118 2,302,502 $2,515,620 The accompanying notes are an integral part of these financial statements. 30 35,180 24,942 60,122 125,000 37,688 162,688 (102,566) 50,000 50,000 (52,566) 512,829 $460,263 Statement 4 The accompanying notes are an integral part of these financial statements_ 31 2007 2006 - $ - $2,687,730 $2,423,246 - - - 7,162 - 42,342 553,450 - - - - - 155,820 306,266 - - - - - 188,594 102,818 - - - 59,988 - 192,545 1,886,776 - - - 244,895 - 244,895 938,298 - - - - - 66,189 84,730 2,023 148,663 29,509 233,733 - 532,827 425,160 - - - 14,785 - 105,832 155,080 - - - 64,775 - 65,375 126,125 - - - 17,689 - 17,689 10,389 2,023 148,663 29,509 643,027 0 4,299,838 7,012,338 - - - 522 - 1,002,763 941,875 - - - 7,096 - 1,193,451 1,180,441 - - - 265,451 - 458,241 423,010 - - 1,064 - - 1 38,491 107,071 - - 294,837 116,264 - 411,101 443,822 - - - - - 125,000 190,000 - - - - - 37,688 44,535 376,836 - 242,663 297,154 - 916,653 1,353,195 376,836 0 538,564 686,487 0 4,283,388 4,683,949 (374,813) 148,663 (509,055) (43,460) 0 16,450 2,328,389 - - - - - 9,237 244,099 160,000 165,380 225,000 773,134 (941,234) 432,280 190,417 - - - (324,234) 941,234 (76,800) (88,500) 160,000 165,380 225,000 448,900 0 364,717 346,016 (214,813) 314,043 (284,055) 405,440 0 381,167 2,674,405 - 2,928,984 769,057 4,663,188 - 11,176,560 8,502,155 ($214,813) $3,243,027 $485,002 $5,068,628 $0 $11,557,727 $11,176,560 The accompanying notes are an integral part of these financial statements_ 31 CITY OF OAK PARK HEIGHTS, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS For The Year Ended December 31, 2007 Amounts reported for governmental activities in the statement of activities are different because: Net changes in fund balances - total governmental funds (Statement 4) Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense: Depreciation Capital outlay Capital contribution 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 Change in deferred and delinquent special assessments The issuance of long -term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long -term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. The amount of this difference is: Principal payments on bonds payable Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Expenses reported in the statement of activities include the effects of the changes in these expense accruals as follows: Change in compensated absences payable Change in accrued interest payable Change in net assets of governmental activities (Statement 2) Statement 5 ?nn7 ?nnti $381,167 $2,674,405 (450,526) (434,042) 1,328,172 1,797,015 (685,069) - 43,264 (6,232) (31,018) (513,053) 125,000 190,000 (18,424) (36,088) 433 570 $692,999 $3,672,575 The accompanying notes are an integral part of these financial statements. 32 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT OF NET ASSETS PROPRIETARY FUNDS December 31, 2007 Statement 6 Business -Type Activities Enterprise Funds Assets: Current assets: Cash and cash equivalents Accrued interest receivable Accounts receivable: Customers Certified to County Other Due from other governmental units Prepaid items Total current assets Noncurrent assets: Capital assets: Land Buildings and structures Machinery and equipment Distribution and collection system Total capital assets Less: Allowance for depreciation Net capital assets Total noncurrent assets Total assets 707 Storm 708 705 Water 706 Sewer Sewer Utility Sanitation Utility Fund Utility Fund Fund Utility Fund Totals Liabilities: Current liabilities: Accounts payable Salaries payable Due to other governments Compensated absences payable - current portion Total current liabilities Noncurrent liabilities: Compensated absences payable Total liabilities 2007 2006 $472,127 $385,411 $152,807 $30,330 $1,040,675 $1,132,313 20,246 16,639 4,905 276 42,066 36,800 68,383 154,706 17,872 26,035 266,996 218,816 9,079 19,763 2,581 4,558 35,981 32,727 - 28,773 - - 28,773 9,679 - - - - - 11,562 - 29,687 - - 29,687 26,845 569,835 634,979 178,165 61,199 1,444,178 1,468,742 60,000 - - - 60,000 60,000 1,585,671 121,031 - - 1,706,702 1,320,334 248,462 4,662 - - 253,124 241,422 3,332,365 4,002,485 - - 7,334,850 7,022,137 5,226,498 4,128,178 0 0 9,354,676 8,643,893 (1,660,557) (1,338,990) - - (2,999,547) (2,817,311) 3,565,941 2,789,188 0 0 6,355,129 5,826,582 3,565,941 2,789,188 0 0 6 5,826,582 4,135,776 3,424,167 178,165 61,199 7,799,307 7,295,324 12,036 26,946 307 13,053 52,342 53,294 295 295 - - 590 3,093 2,534 4,975 - 2,331 9,840 6,583 640 396 64 - 1,100 1,293 15,505 32,612 371 15,384 63,872 64,263 14,400 8,909 1,433 - 24,742 22,316 29,905 41,521 1,804 15,384 88,614 86,579 Net assets: Invested in capital assets, net of related debt 3,565,941 2,789,188 - - 6,355,129 5,826,582 Unrestricted 539,930 593,458 176,361 45,815 1,355,564 1,382,163 Total net assets $4,105,871 $3,382,646 $176,361 $45,815 $7,710,693 57,208,745 The accompanying notes are an integral part of these financial statements. 33 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For The Year Ended December 31, 2007 Statement 7 Operating expenses Personal services 166,388 Business -Type Activities Enterprise Funds 18,451 - 292,761 321,139 707 Storm 708 55,506 11,748 153,298 705 Water 706 Sewer Sewer Utility Sanitation - - 550 Utility Fund Utility Fund Fund Utility Fund Totals - - 322,126 316,304 Materials and supplies 2007 2006 Operating revenues: - 15,939 18,060 Administrative and personnel charges 22,950 37,170 Customer billings $461,743 $649,595 $72,969 $95,805 $1,280,112 $1,367,788 Penalties 4,605 11,112 778 1,959 18,454 23,174 Meter sales 8,810 - - - 8,810 14,309 Charges for services 4,486 4,341 195 - 9,022 17,595 Refunds and reimbursements 2,456 - - - 2,456 18,187 Total operating revenues 482,100 665,048 73,942 97,764 1,318,854 1,441,053 Operating expenses Personal services 166,388 107,922 18,451 - 292,761 321,139 Contractual services 84,985 55,506 11,748 153,298 305,537 371,283 Recycling award - - - 550 550 573 MCES charges - 322,126 - - 322,126 316,304 Materials and supplies 10,928 4,013 998 - 15,939 18,060 Administrative and personnel charges 22,950 37,170 3,080 - 63,200 64,465 Depreciation 102,515 79,721 - - 182,236 181,023 Total operating expenses 387,766 606,458 34,277 153,848 1,182,349 1,272,847 Operating income (loss) 94,334 58,590 39,665 (56,084) 136,505 168,206 Nonoperating revenues: Earnings on investments 28,930 23,771 7,007 395 60,103 49,037 Impairment gain on lift station # 9 - 14,773 - - 14,773 - Total operating revenues 28,930 38,544 7,007 395 74,876 49,037 Income (loss) before contributions and transfers 123,264 97,134 46,672 (55,689) 211,381 217,243 Capital contributions 550,406 134,663 - - 685,069 - Transfers: Transfers from other funds - - - 76,800 76,800 88,500 Transfers to other funds (280,512) (148,968) (2,800) - (432,280) (190,417) Total transfers and contributions 269,894 (14,305) (2,800) 76,800 329,589 (101,917) Change in net assets 393,158 82,829 43,872 21,111 540,970 115,326 Net assets - January 1, as previously reported 3,737,1 12 3,314,440 132,489 24,704 7,208,745 7,093,419 Prior period adjustment (24,399) (14,623) - - (39,022) - Net assets - January 1, as restated 3,712,713 3,299,817 132,489 24,704 7,169,723 7,093,419 Net assets - December 31 $4,105,871 $3,382,646 $176,361 $45,815 $7,710,693 $7,208,745 The accompanying notes are an integral part of these financial statements. WE CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2007 Bus iness -Type Activities Enterprise Funds Cash flows from operating activities: Receipts from customers and users Payment to suppliers Payment to employees Miscellaneous revenue Net cash flows from operating activities Cash flows from noncapital financing activities: Transfer to other funds Transfer from other funds Net cash flows from noncapital financing activities Statement 8 707 Storm 708 705 Water 706 Sewer Sewer Utility Sanitation Utility Fund Utility Fund Fund Utility Fund Totals 2007 2006 $457,878 $588,221 $67,434 587,045 $1,200,578 $1,370,606 (112,970) (399,110) (20,476) (175,269) (707,825) (773,912) (166,542) (108,177) (18,312) - (293,031) (318,530) 15,752 4,341 195 - 20,288 50,091 194,118 85,275 28,841 (88,224) 220,010 328,255 $194,118 $85,275 $28,841 ($88,224) Cash flows from investing activities: $328,255 (280,512) (148,968) (2,800) - (432,280) (190,417) - - - 76,800 76,800 88,500 Net increase (decrease) in cash and cash equivalents (71,472) (40,963) 31,909 (11,1 12) (91,638) 236,360 (280,512) (148,968) (2,800) 76,800 (355,480) (101,917) Cash flows from capital and related (72,486) (6,313) (10,719) (97,988) financing activities: - (2,842) - - Insurance proceeds (486) 28,771 - - 28,771 - Acquisition of capital assets (11,774) (28,002) - - (39,776) (22,255) Net cash flows from capital (32,140) 83,505 160,049 and related financing activities (11,774) 769 0 0 (11,005) (22,255) $194,118 $85,275 $28,841 ($88,224) Cash flows from investing activities: $328,255 Investment income 26,696 21,961 5,868 312 54,837 32,277 Net increase (decrease) in cash and cash equivalents (71,472) (40,963) 31,909 (11,1 12) (91,638) 236,360 Cash and cash equivalents - January I Cash and cash equivalents - December 31 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation Disposal of capital asset Changes in assets and Iiabilities: Decrease (increase) in receivables Decrease (increase) in prepaid expenses Increase(decrease)in payables Total adjustments Net cash provided by operating activities Noncash investing, capital and financing activities: Contribution of capital asset 543,599 426,374 120,898 41,442 1,132,313 895,953 $472,127 $385,411 $152,807 $30,330 $1,040,675 $1,132,313 $94,334 $58,590 $39,665 ($56,084) $136,505 $168,206 102,5I5 79,72I - 182,236 181,023 32 32 - - 64 - (8,470) (72,486) (6,313) (10,719) (97,988) (20,356) - (2,842) - - (2,842) (486) 5,707 22,260 (4,511) (21,421) 2,035 (132) 99,784 26,685 (10,824) (32,140) 83,505 160,049 $194,118 $85,275 $28,841 ($88,224) $220,010 $328,255 $550,406 $134,663 $ - $ - S685,069 $ - The accompanying notes are an integral part of these financial statements. 35 CITE' OF OAK PARK HEIGH'T'S, MINNESO'T'A STATEMENT OF FIDUCIARY NET ASSETS AGENCY FUNDS December 31, 2007 Statement 9 2007 Assets: Cash and investments $157,915 Due from developers 8,440 Accounts receivable 3,000 Total assets 169,355 Liabilities Escrow deposits payable $31,660 Accounts payable 5,722 Due to developers 131,973 Total liabilities 169,355 Net assets: Unrestricted $0 The accompanying notes are an integral part of these financial statements. S177,178 8,934 1250,112 578,218 6,729 101,165 186,112 $0 Ire CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2007 Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Oak Park Heights, Minnesota operates under the State of Minnesota Statutory Plan A form of govermnent. 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 goveirmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies. 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. 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, 2007 Separate financial statements are provided for governmental funds, proprietary finds, and fiduciary funds, even though the latter are excluded from the govern vent -wide financial statements. Major individual governmental funds and major individual enterprise finds are reported as separate columns in the find financial statements. C. MEASUREMENT FOCUS, BASIS OF • FINANCIAL STATEMENT PRESENTATION The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The City's only fiduciary funds are agency funds. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if they are collected within one year of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, special assessments, intergovernmental revenues, charges for services and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government. The City reports the following major governmental funds: The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The G. 0. Improvement Bonds of 1998 Debt Service Fund - S 1,990,000 bond issue to fund water, sewer, storm sewer improvements in the Kern Center and construction of Phase III of 58` Street. Bonds are to be paid over 15 years. The Water Tower Rehabilitation Capital Project Fund — is used to account for costs of repairs to the City's water tower. CITY OF OAK PART{ HEIGHTS, MINNES ®TA NOTES TO FINANCIAL STATEMENTS December 31, 2007 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 finds: The Water Utility Fund accounts for assets, liabilities, revenues and expenditures for water utility operations. The Sewer Utilitv Fund accounts for assets, Iiabilities, 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, Iiabilities, revenues and expenditures for garbage and recycling operations. Additionally, the government reports the following fund type: Agency Funds account for the assets of various developers held by the City as an agent. Private- sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government -wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private - sector guidance for their business -type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private- sector guidance. As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved external organizations, such as buying goods and services or payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. 19 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2007 Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for an allowable use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. 1` 1 C 1 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. 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 5500 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. lug CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2007 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. FD CASH AND INVESTMENTS Cash and investment balances from all funds are pooled and invested to the extent available in authorized investments. Earnings from investments are allocated to individual funds on the basis of the fund's equity in the cash and investment pool. Investments are stated at fair value, based upon quoted market prices. Investment income is accrued at the balance sheet date. For purposes of the statement of cash flows the Enterprise Funds consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the Enterprise Funds have original maturities of 90 days or less. Therefore the entire balance in the fund is considered cash equivalents. Property taxes and special assessments (see notes 1 H and I) have been reported net of estimated uncollectible accounts. Because utility bills are considered liens on property, no estimated uncollectible amounts are established. Uncollectible amounts are not material for other receivables and have not been reported. CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2007 The City Council annually adopts a tax levy and certifies it to the County in December (levy /assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 7 and December 2 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. Government -Wide Financial Statements The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible property taxes are not material and have not been reported. Governmental Fund Financial Statements The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and January are recognized as revenue for the current year. Taxes collected by the County by December 31 (remitted to the City the following January) and taxes and credits not received at year end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January 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, 2007 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. 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. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. L. CAPITAL ASSETS Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. In the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities) the government chose to include all such items regardless of their acquisition date. These assets are reported at historical cost. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. For the year ended December 31, 2007, no interest was capitalized in connection with construction in progress. IN CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2007 Property, plant and equipment of the primary government, as well as the component units, is depreciated using the straight line method over the following estimated useful lives: Buildings and structures Machinery and equipment Distribution and collection systems Streets Storm sewers Pathways M. COMPENSATED ABSENCES 50 years 3 — 20 years 50 years 25 years 50 years 20 years It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All vacation pay and accumulated sick leave benefits that is vested as accrued when incurred in the government -wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. In accordance with the provisions of Statement of Government Accounting Standards No. 16, Accounting for Compensated Absences, no liability is recorded for nonvesting accumulating rights to receive sick pay benefits. 11� •,:: In the government -wide financial statements and proprietary fund types in the fund financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund type statement of net 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 fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 1, t= t ; In the fund financial statements, governmental funds report reservations of fund balance for amounts not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. M CI'T'Y OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2007 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. 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 In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral includes the following: a) United States government treasury bills, treasury notes, treasury bonds; b) Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; c) General obligation securities of any state or local government with taxing powers which is rated "A" or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated "AA" or better by a national bond rating service; d) Unrated general obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity: e) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank's public debt is rated "AA" or better by Moody's IN CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2007 Investors Service, Inc. or Standard & Poor's Corporation; and f) Time deposits that are fully insured by any Federal agency. At December 31, 2007 the carrying amount of the City's deposits with financial institutions was $10,162,164, 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 government with taxing powers which is rated "A" or better by a national bond rating service; 2) any security which is a revenue obligation of any state or local government with taxing powers which is rated "AA" or better by a national bond rating service; and 3) a general obligation of the Minnesota housing finance agency which is a moral obligation of the State of Minnesota and is rated "A" or better by a national bond rating agency. d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System. e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota securities broker - dealers; or, a bank qualified as a depositor. g) General obligation temporary bonds of the same governmental entity issued under section 429.091, subdivision 7; 469.178, subdivision 5; or 475.6 1, subdivision 6. ia CITY OF OAK PARK HEIGHTS, MINNES ®TA NOTES TO FINANCIAL STATEMENTS December 31, 2007 As of December 31, 2007 the City had the following investments and maturities: (3 ) These notes alI 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, 2007: Government -wide statement of net assets: Cash and investments S12,345,319 Fiduciary funds statement of net assets 157,915 $12,503,234 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, 2007, 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 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. 47 Investment Maturities (in Years) Fair Less Investment Type Value Than 1 1 -5 6 -10 Federal National Mortgage Assn. Notes��� $196,500 $ - $196,500 $ - Federal Home Loan Mortgage Corp. Notes 1,092,687 - 294,874 797,813 Federal Home Loan Bank Notes (3) 196,253 - 96,253 100,000 External investment pool - 4M Fund 855,530 855,530 - - Total $2,340,970 $855,530 $587,627 $897,813 ( "$100,000 of these notes have call dates that occur Total investments $2,340,970 in less than one year. Deposits 10,162, I64 (2 '$549,750 of these notes have caII dates that Petty cash 100 occur in less than one year Total cash and investments $12,503,234 (3 ) These notes alI 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, 2007: Government -wide statement of net assets: Cash and investments S12,345,319 Fiduciary funds statement of net assets 157,915 $12,503,234 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, 2007, 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 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. 47 CI'T'Y OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2007 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 and the 4M Fund external investment pool. These investments are 8.7% and 6.8 %, respectively of the City's total cash and investments. Note 3 RECEIVABLES Significant receivable balances not expected to be collected within one year of December 31, 2007 are as follows: Major Funds G.O Improvement Bonds of General 1998 Total Delinquent property taxes $15,790 $ - $15,790 Deferred special assessments - 131,920 131,920 Total $15,790 $131,920 $1 47,710 Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows: Delinquent property taxes receivable (General Fund) Special assessments receivable (G.O. Improvement Bonds of 1998 Fund) Total deferred /unearned revenue for governmental funds Unavailable Unearned $82,095 $ 153,907 $236,002 $0 ,. CITE' OF DAIS PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2007 Note 4 CAPI'T'AL, ASSETS Capital asset activity for the year ended December 31, 2007 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated: Land $1,894,094 $294,837 $ - $2,188,931 Construction in progress 1,355,240 916,975 (2,095,772) 176,443 Total capital assets, not being depreciated 3,249,334 1,211,812 (2,095,772) 2,365,374 Capital assets, being depreciated: Buildings and structures 1,118,146 465,885 - 1,584,031 Other improvements 886,154 - - 886,154 Machinery and equipment 442,583 107,127 (48,997) 500,713 Furniture and fixtures 261,190 - - 261,190 Infrastructure 11,234,100 954,051 - 12,188,151 Total capital assets, being depreciated 13,942,173 1,527,063 (48,997) 15,420,239 Less accumulated depreciation for Buildings and structures 423,829 23,706 - 447,535 Other improvements 137,436 12,250 - 149,686 Machinery and equipment 287,539 39,495 (48,997) 278,037 Furniture and fixtures 105,707 19,903 - 125,610 Infrastructure 3,880,502 355,172 - 4,235,674 Total accumulated depreciation 4,835,013 450,526 (48,997) 5,236,542 Total capital assets being depreciated - net 9,107,160 1,076,537 0 10,183,697 Governmental activities capital assets - net $12,356,494 $2,288,349 ($2,095,772) $12,549,071 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2007 Business -type activities: Capital assets, not being depreciated: Land Total capital assets, not being depreciated Capital assets, being depreciated: Buildings and structures Machinery and equipment Distribution and collection systems Total capital assets, being depreciated Less accumulated depreciation: Buildings and structures Machinery and equipment Distribution and collection systems Less accumulated depreciation Total capital assets being depreciated - net Business -type activities capital assets - net Beginning Ending Balance Increases Decreases Balance $60,000 $ - $ - $60,000 60,000 0 0 60,000 1,320,334 386,368 - 1,706,702 241,422 11,766 (64) 253,124 7,022,137 326,713 (14,000) 7,334,850 8,583,893 724,847 (14,064) 9,294,676 522,482 30,072 - 552,554 122,050 11,944 (64) 133,930 2,172,779 I40,284 - 2,313,063 2,817,311 182,300 (64) 2,999,547 5,766,582 542,547 (14,000) 6,295,129 $5,826,582 $542,547 ($14,000) $6,355,129 Depreciation expense was charged to functions /programs of the primary government as follows: Governmental activities: General government Public safety Public works Recreation Total depreciation expense - governmental activities Business -type activities: Water Sewer Total depreciation expense - business -type activities $39,345 27,974 337,636 45,571 $450,526 $102,515 79,721 $182,236 WE CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2007 Note 5 LONG -TERM DEBT The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. The reporting entity's long -term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business -type activities. As of December 31, 2007, the long -term debt of the financial reporting entity consisted of the following: Final Authorized Issue Maturity Interest And Outstanding Date Date Rate Issued 12/31/07 Governmental Activities: Improvement bonds: G.O. Improvement Bonds of 1998 Compensated absences payable Total governmental activities Business -Type Activities: Compensated absences payable Total City indebtedness 225,873 975,873 25,842 $1,001,715 *In February 2008, City council passed a resolution to pre -pay the remaining balance of the G.O. Improvement Bonds of 1998 on April 1, 2008. An estimated payment of $760,833 will be made on that date, which includes $750,000 of principal and $10,125 of interest. It is not practicable to determine the specific year for payment of accrued compensated absences. Change in Long -Term Liabilities Long -term liability activity for the year ended December 31, 2007, was as follows: Balance 01/01/07 Additions Reductions Governmental Activities: Bonded debt: Improvement bonds Compensated absences Total governmental activities Business -Type Activities: Compensated absences Total business -type activities 10/01/98 12/1/2013" 4.00 -4.50 $1,990,000 $750,000 Balance Due Within 12/31/07 One Year $875,000 $ - $125,000 $750,000 $750,000 207,449 72,364 53,940 225,873 43,875 $1,082,449 $72,364 $178,940 $975,873 $793,875 $23,609 $11,481 $9,248 $25,842 $1,100 $23,609 $11,481 $9,248 $25,842 $1,100 51 CITE' OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2007 For the governmental activities, compensated absences are generally liquidated by the General Fund. All long -term bonded indebtedness outstanding at December 31, 2007 is backed by the full faith and credit of the City, including improvement bond issues. Delinquent assessments receivable at December 31, 2007 were $0. Note 6 PENSION PLANS ' '• 1 1 Ci ' 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 (PERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost - sharing, multiple- employer retirement plans. These plans are established and administered in accordance with Minnesota Statute, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained on the internet at www.mnpera.org by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103 -2088 or by calling (651)296 -7460 or 1 -800- 652 -9026. FUNDING POLICY Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members were required to contribute 9.10% and 5.75 %, respectively, of their annual covered salary in 2007. Contribution rates in the Coordinated Plan will increase in 2008 to 6.0 %. PEPFF members were required to contribute 7.8% of their annual covered salary in 2007. That rate 52 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2007 will increase to 8.6% in 2008. The City is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan PERF members, 6.25% for Coordinated Plan PERF members, and 11.7% for PEPFF members. Employer contribution rates for the Coordinated Plan and PEPFF will increase to 6.5% and 12.9% respectively, effective January 1, 2008. The City's contributions to the Public Employees Retirement Fund for the years ending December 31, 2007, 2006 and 2005 were 541,234, 538,951 and $33,500, respectively. The City's contributions to the Public Employees Police and Fire Fund for the years ending December 31, 2007, 2006 and 2005 were 577,521, $70,569 and 560,723, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. 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 $9,198 for the year ended December 31, 2007. Note 7 INTERFUND TRANSFERS Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from services provided by another fund. With the exception of Renewal and Replacement, all of the City's interfund transfers fall under that category. The transfer to Renewal and Replacement allows the City to accumulate resources to be used for improvements. All of the 2007 transfers are considered routine and consistent with previous practices. 53 Transfer In Major Business - Major Funds Type Fund G.O. Improvement Renewal and Nonmajor Bonds of 1998 Replacement Water Tower Park Governmental Sanitation Fund Fund Rehabilitation Development Funds Utility Fund Total Transfer out Governmental Activities: General Fund $ - $ $ $ $617,000 $76,800 $693,800 Nonmajor Governmental Funds 50,000 - 225,000 49,234 - 324,234 Business -Type Activities: Water Utility Fund - 88,212 160,000 - 32,300 280,512 Sewer Utility Fund 77,168 - 71,800 148,968 Storm Sewer Utility Fund - - - 2,800 - 2,800 Total transfers $50,000 $165,380 $160,000 $225,000 $773,134 $76,800 $1,450,314 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 2007 transfers are considered routine and consistent with previous practices. 53 CITE' OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2007 Note 8 CONTINGENCIES A. LITIGATION The City attorney has indicated there is one pending matter in which the City is a defendant. It is the opinion of the City attorney that this action dismissed I I'm N X117 The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2007. 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. 54 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2007 Note 10 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY At December 31, 2007 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, 2007 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, 2007 Governmental Funds: Major Funds: General Fund: Designated for cash flow $1,698,000 Designated for contingent employee benefit 183,000 Designated for general contingency 595,000 G.O. Improvement Bonds of 1998: Reserved for debt service 460,263 Renewal and Replacement Fund: Designated for capital improvements 3,243,027 Park Development Fund: Designated for capital improvements 485,002 Nonmajor Funds: Designated for special revenue programs 100,960 Designated for capital improvements 4,967,668 Totals $11 ,732,920 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 2007. 55 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2007 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, 2007, there were six series of Industrial Revenue Bonds outstanding. The principal amount payable at December 31, 2007 could not be determined; however, their original issue amounts totaled $54,985,000. Note 13 RECENTLY ISSUED ACCOUNTING STANDARDS The Governmental Accounting Standards Boards (GASB) recently approved the following statement which were not implemented for these financial statements: Statement No. 45 Accounting and Financial Reporting by Employers for Post Employment Benefits Other Than Pension Plans. Implementation is required in three phases based on a government's total annual revenues in the first fiscal year ending after June 15, 1999. This Statement is effective for periods beginning after December 15, 2006, for phase I governments (those with total annual revenues of $100 million or more); after December 15, 2007, for phase 2 governments (those with total annual revenues of $10 million or more but less then $100 million); and after December 15, 2008, for phase 3 governments (those with total annual revenues of less than $10 million). Early implementation is encouraged. Statement No. 49 Accounting and Financial Reporting for Pollution Remediation Obligation. The provisions of this Statement are effective for financial statements for periods beginning after December 15, 2007. Statement No. 50 Pension Disclosures — an amendment of GASB Statements No. 25 and No. 27. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2007. Statement No. 51 Accounting and Financial Reporting for Intangible Assets. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2009. The effect these standards may have on future financial statements is not determinable at this time. 56 CITE' OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2007 Note 14 SUBSEQUENT EVENT Effective January 1, 2008, the City changed its policy regarding sanitation charges for services. As of January 1, 2008, residential customers will not be charged for sanitation services (limited to one container). Additionally, this activity will be reported in the General Fund rather than the Sanitation Enterprise Fund. Note 15 OPERA'T'ING LEASES The City leases space in and above its water tower. The space is used for antennas and other equipment necessary to provide radio communications. Lease terns are as follows: Location Lessee 2007 Lease Annual Lease Expiration Renewal Amount Adjustment Factor* Date Options 58th and Norrell Sprint PCS $25,393 Greater of CPI or 5% 9/20/2009 3 5 -year terms *Amounts for future lease receipts are unavailable because they are based on the Consumer Price Index 57 - This page intentionally left blank - 58 ME -`Phis page intentionally left blank - ME 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, 2007 With Comparative Actual Amounts For The Year Ended December 31, 2006 rom Variance with Final Budget - 2007 Actual Positive 2006 Actual Budgeted Amounts Amounts (Negative) Amounts Original Final Revenues: Property taxes $2,708,589 $2,708,589 $2,666,871 ($41,718) $2,402,354 Payment in lieu of taxes 20,000 20,000 20,859 859 20,892 Total property taxes 2,728,589 2,728,589 2,687,730 (40,859) 2,423,246 Special assessments - - - - 36 Intergovernmental: Federal: Safe and sober - - 4,978 4,978 7,055 Operation nightcap - - 840 840 834 Releaf grant - - - - 1,000 Underage compliance checks 960 960 960 - 960 State: Market value homestead credit 81,066 81,066 81,066 - - Police aid 61,000 61,000 66,525 5,525 60,723 Police training aid - - 3,618 3,618 1,809 PERA rate increase aid 2,040 2,040 2,040 - 2,040 Local government aid 27,984 27,984 27,984 - 27,798 County: Gravel tax allocation - - 583 583 599 Total intergovernmental 173,050 173,050 188,594 15,544 102,818 Licenses and permits 187,605 187,605 155,820 (31,785) 306,266 Charges for services: General government 5,000 5,000 69,357 64,357 14,300 Administrative - Enterprise Fund 63,200 63,200 63,200 - 64,465 Total charges for services 68,200 68,200 132,557 64,357 78,765 Fines and forfeits 60,500 60,500 66,189 5,689 81,230 Investment income 65,000 65,000 93,957 28,957 79,610 Refunds and reimbursements 80,390 80,390 91,047 10,657 75,213 Donations and contributions - - 600 600 - Sale of property - - - - 1,489 Total revenues 3,363,334 3,363,334 3,416,494 53,160 3,148,673 rom 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, 2007 With Comparative Actual Amounts For The Year Ended December 31, 2006 m Variance with Final Budget - 2007 Actual Positive 2006 Actual Budgeted Amounts Amounts (Negative) Amounts Original Final Expenditures: General government: Mayor and city council: Current: Personal services $48,100 $48,100 $48,513 ($413) $45,460 Materials and supplies 800 800 350 450 695 Other services and charges 26,260 26,260 24,521 1,739 17,427 Total mayor and city council 75,160 75,160 73,384 1,776 63,582 City administration: Current: Personal services 164,300 164,300 158,822 5,478 156,647 Materials and supplies 3,800 3,800 2,346 1,454 2,051 Other services and charges 44,260 44,260 44,642 (382) 38,852 Total City administration 212,360 21.2,360 205,810 6,550 197,550 Legal: Current: Personal services 30,000 30,000 26,093 3,907 18,927 General management and building: Current: Materials and supplies 7,900 7,900 9,319 (1,419) 7,750 Other services and charges 76,500 76,500 68,508 7,992 63,660 Total general management and building 84,400 84,400 77,827 6,573 71,410 Elections: Current: Personal services 2,700 2,700 2,683 17 4,367 Materials and supplies 350 350 266 84 1,214 Other services and charges 340 340 622 (282) 340 Total elections 3,390 3,390 3,571 (181) 5,921 Finance: Current: Personal services 187,500 187,500 178,612 8,888 148,355 Materials and supplies 2,825 2,825 2,193 632 2,082 Other services and charges 29,940 29,940 25,624 4,316 35,709 Total finance 220,265 220,265 206,429 13,836 186,146 Computer system: Current: Materials and supplies 1,500 1,500 2,507 (1,007) 1,668 Other services and charges 20,970 20,970 13,119 7,851 10,852 Total computer system 22,470 22,470 15,626 6,844 12,520 Audit: Current: Personal services 16,500 16,500 22,238 (5,738) 16,673 m CITY OF OAK PARK HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2007 With Comparative Actual Amounts For The Year Ended December 31, 2006 $324,795 $324,795 $309,540 $15,255 $298,671 46,100 46,100 19,035 19,035 19,032 3 18,126 135,091 4,509 128,131 28,000 28,000 22,143 5,857 31,139 100 100 131 (31) 11 1,950 1,950 1,225 725 1,475 30,050 30,050 23,499 6,551 32,625 123,150 123,150 116,821 27,000 27,000 19,192 7,808 12,895 - 2,000 10,000 10,000 - 10,000 6,385 Variance with Final Budget - 2007 Actual Positive 2006 Actual Budgeted Amounts Amounts (Negative) Amounts Original Final Expenditures: (continued) General government: (continued) Insurance: Current: Other services and charges Assessing: Current: Personal services Planning and zoning: Current: Personal services Materials and supplies Other services and charges Total planning and zoning Engineering: Current: Other services and charges General contingency: Current: Other services and charges Total general government Public safety: Police department: Current: Personal services Materials and supplies Other services and charges Total police department Building inspections: Current: Personal services Materials and supplies Other services and charges Total building inspections Fire protection: Current: Materials and supplies Other services and charges Total fire protection 1,075,425 1,075,425 1,002,241 Statement 10 Page 3 of 5 73,184 941,431 812,000 812,000 761,882 50,118 763,403 46,100 46,100 43,002 3,098 36,270 139,600 139,600 135,091 4,509 128,131 997,700 997,700 939,975 57,725 927,804 97,300 97,300 97,604 (304) 100,641 3,350 3,350 3,061 289 3,253 22,500 22,500 16,156 6,344 16,864 123,150 123,150 116,821 6,329 120,758 2,000 2,000 2,000 - 2,000 131,125 131,125 125,539 5,586 120,995 133,125 133,125 127,539 5,586 122,995 11 Expenditures: (continued) Public safety: (continued) Civil defense: Current: Other services and charges Animal control: Current: Materials and supplies Other services and charges Total animal control Budgeted Amounts Original Final $5,100 $5,100 Variance with Final Budget - 2007 Actual Positive 2006 Actual Amounts (Negative) Amounts Total public safety Public works: Street maintenance: Current: Personal services Materials and supplies Other services and charges Capital outlay Total street maintenance Snow removal: Current: Materials and supplies Other services and charges Total snow removal Street lighting: Current: Other services and charges Capital outlay Total street lighting Arborist: Current: Personal services Materials and supplies Other services and charges Total arborist Tree removal and planting: Current: Other services and charges Total public works $980 $4,120 $86 150 150 50 1,500 1,500 990 1,650 1,650 1,040 100 39 510 1,367 610 1,406 1,260,725 1,260,725 1,186,355 74,370 1,173,049 19,715 19,715 17,945 1,770 17,334 8,085 8,085 4,230 3,855 7,164 23,905 23,905 26,885 (2,980) 17,414 - - - - 1,000 51,705 51,705 49,060 2,645 42,912 500 500 1,004 (504) 23 93,000 93,000 105,613 (12,613) 46,242 93,500 93,500 106,617 (13,117) 46,265 60,800 60,800 14,749 46,051 54,317 - - - - 1,000 60,800 60,800 14,749 46,051 55,317 15,125 15,125 11,341 3,784 12,679 150 150 - 150 - 255 255 230 25 70 15,530 15,530 11,571 3,959 12,749 25,000 25,000 10,793 14,207 22,440 246,535 246,535 192,790 53,745 179,683 s CITY OF OAK PARK HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2007 With Comparative Actual Amounts For The Year Ended December 31, 2006 Statement 10 Page 5 of 5 Variance with Final Budget - 2007 Actual Positive 2006 Actual Budgeted Amounts Amounts (Negative) Amounts Original Final Expenditures: (continued) Parks and recreation: Parks, playgrounds and rinks: Current: Personal services Materials and supplies Other services and charges Total parks and recreation Total expenditures Revenues over expenditures Other financing sources (uses): Sale of property Transfers out Total other financing sources (uses) Net change in fund balances Fund balance - January I Fund balance - December 31 $54,445 $54,445 $57,737 ($3,292) $42,877 8,750 8,750 15,707 (6,957) 12,639 71,550 71,550 63,983 7,567 51,555 134,745 134,745 137,427 (2,682) 107,071 2,717,430 2,717,430 2,518,813 198,617 2,401,234 645,904 645,904 897,681 251,777 747,439 - - 9,237 9,237 - (569,800) (566,500) (693,800) (127,300) (548,680) (569,800) (566,500) (684,563) (118,063) (548,680) $76,104 $79,404 213,118 $133,714 198,759 2,302,502 $2,515,620 2,103,743 $2,302,502 W CITY OF OAK PARK HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE NOTE TO RSI December 31, 2007 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. is m - This page intentionally left blank - ME Z Assets Cash and investments Interest receivable Accounts receivable - net Due from developers Interfund loan receivable Special assessments receivable: Deferred Total assets Liabilities and Fund Balance Liabilities: Cash overdraft Accounts payable Contracts payable Due to developers Deferred revenue Total liabilities Fund balance: Reserved Unreserved: Designated Undesignated Total fund balance Total liabilities and fund balance Special Revenue $92,611 3,193 5,717 Debt ($822) 822 Capital Project 54,601,963 159,575 250 6,427 225,000 Totals Nonmajor Governmental Funds 2007 2006 $4,693,752 $4,536,448 163,590 132,259 5,967 250 6,427 32,296 225,000 - - - - - 6,773 $101,521 $0 $4,993,215 $5,094,736 $4,708,026 - $28,862 561 - 5,433 5,994 8,203 - - 1,000 20,114 20,114 - - - 6,773 561 0 25,547 26,108 44,838 - - - - 205,000 100,960 - 4,967,668 5,068,628 4,410,873 - - - - 47,315 100,960 0 4,967,668 5,068,628 4,663,188 $101,521 $0 $4,993,215 $5,094,736 $4,708,026 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, 2007 With Comparative Totals For The Year Ended December 31, 2006 Totals Revenues: General property taxes Special assessments Charges for services Direct charges to developers Fines and forfeits Investment income Refunds and reimbursements Donations and contributions Miscellaneous Total revenues Expenditures: Current: General government Public safety Public works Capital outlay Debt service: Principal Interest Construction costs Total expenditures Revenues over (under) expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - January I Fund balance - December 31 Special Debt Capital Nonmajor Governmental Funds Revenue Service Project 2007 2006 7,392 - - 265,451 265,451 - - 7,162 7,162 50,157 - - 59,988 59,988 803,771 - - 244,895 244,895 140,609 - - - - 3,500 4,563 1,175 227,995 233,733 176,236 - - 14,785 14,785 79,867 - - 64,775 64,775 126,125 17,689 - - 17,689 8,900 22,252 1,175 619,600 643,027 1,389,165 522 - - 522 444 7,096 - - 7,096 7,392 - - 265,451 265,451 244,099 - - 116,264 116,264 162,842 - - - - 65,000 - - - - 1,723 - - 297,154 297,154 207,678 7,618 0 678,869 686,487 689,178 14,634 1,175 (59,269) (43,460) 699,987 - - - - 244,099 - - 773,134 773,134 549,032 - (48,490) (275,744) (324,234) (118,952) 0 (48,490) 497,390 448,900 674,179 14,634 (47,315) 438,121 405,440 1,374,166 86,326 47,315 4,529,547 4,663,188 3,289,022 $100,960 $0 $4,967,668 $5,068,628 $4,663,188 71 Fund balance: Unreserved: Designated for special revenue programs Total fund balance Total liabilities and find balance 43,136 202 Forefeiture 204 Economic Totals Nonmajor Special Revenue 43,136 and Seizure Development Funds Assets $43,697 2007 2006 Cash and investments $36,752 $55,859 $92,611 $83,699 Accrued interest receivable 1,228 1,965 3,193 2,627 Accounts receivable 5,717 - 5,717 - Total assets $43,697 $57,824 $101,521 $86,326 Liabilities and Fund Balance Liabilities: Accounts payable $561 $ - $561 $ - Fund balance: Unreserved: Designated for special revenue programs Total fund balance Total liabilities and find balance 43,136 57,824 100,960 86,326 43,136 57,824 100,960 86,326 $43,697 $57,824 $101,521 $86,326 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, 2007 With Comparative Totals For The Year Ended December 31, 2006 Revenues: Investment income Refunds and reimbursements Confiscated property Total revenues 202 Forefeiture and Seizure $1,755 17,689 19,444 204 Economic Development Totals Nonmajor Special Revenue Funds 2006 $3,501 6,040 Expenditures: General government: Current: Contractual services Public safety: Current: Materials and supplies Contractual services Total expenditures Revenues over expenditures Fund balance - January I Fund balance - December 31 52,808 1' 522 2007 $4,563 17,689 22,252 18,441 522 444 4,380 - 4,380 4,009 2,716 - 2,716 3,383 7,096 522 7,618 7,836 12,348 2,286 14,634 10,605 30,788 55,538 86,326 75,721 $43,136 $57,824 $100,960 $86,326 73 Assets Cash and investments Accrued interest receivable Total assets Liabilities and Fund Balance Liabilities Fund balance: Reserved for debt service Unreserved: Undesignated Total fund balance Total liabilities and fund balance 74 Nonmajor Debt Service Fund 2007 2006 ($822) 544,065 822 3,250 $0 $47,315 - $ - - 47,315 0 47,315 $0 $47,315 CITE' 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, 2007 With Comparative Amounts For The Year Ended December 31, 2006 Revenues: Investment income Expenditures: Debt service: Principal retirement Interest and other Total expenditures Revenues over (under) expenditures Other financing sources (uses): Transfers out Net change in fund balance Fund balance - January I Nonmajor Debt Service Fund 2007 2006 $1,175 $4,331 - - 65,000 1,723 0 66,723 1,175 (48,490) (62,392) - (47,315) 47,315 (62,392) 109,707 Fund balance - December 31 $0 $47,315 75 -This page intentionally left blank - w CITE' OF OAK PARK HEIGHTS, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS December 31, 2007 With Comparative Totals For December 31, 2006 401 Budgeted Projects and 500 Capital Equipment 565 Street Revolving Fund Revolving Reconstruction Assets Cash and investments Interest receivable Accounts receivable Due from other governmental units Due from developers Interfund loan receivable Special assessments receivable: Deferred Total assets Liabilities and Fund Balance Liabilities: Cash overdraft Accounts payable Contracts payable Due to developers Deferred revenue Total liabilities Fund balance: Reserved for Autumn Hills Park Unreserved: Designated for capital improvement Undesignated Total fund balance Total liabilities and fund balance Statement 17 Page I of 2 406 Brekke Park Memorial 5542,376 S904,059 $924,762 $356 24,178 32,755 27,110 12 - 250 - - 225,000 - - - 5791,554 $937,064 $951,872 $368 S - S - $ - $ - - 5,433 - - 0 5,433 0 0 791,554 931,631 951,872 368 791,554 931,631 951,872 368 $791,554 5937,064 $951,872 5368 77 Assets Cash and investments Interest receivable Accounts receivable Due from other governmental units Due from developers Interfund loan receivable Special assessments receivable: Deferred Total assets Liabilities and Fund Balance Liabilities: Cash overdraft Accounts payable Contracts payable Due to developers Deferred revenue Total liabilities Fund balance: Reserved for Autumn Hills Park Unreserved: Designated for capital improvement Undesignated Total fund balance Total liabilities and fund balance 711 Water Tower 733 Oakgreen 771 Sanitary Rental Avenue Utilities Sewer Connection $84,053 2,537 ($507) $462,444 - 16,842 507 - $86,590 $0 $479,286 0 0 0 86,590 - 479,286 86,590 0 479,286 $86,590 $0 $479,286 0 Statement 17 Page 2 of 2 79 732 Novak 773 AAE - Avenue Street 772 Water Storm Sewer and Utility 735 Well 736 Sewer Totals Nonmajor Capital Project Connection Connection Improvements Rehabilitation Rehabilitation Funds 2007 2006 $694,375 $883,841 $14,194 $24,669 $67,341 $4,601,963 $4,408,684 23,755 31,312 - 281 793 159,575 126,382 - - - - - 250 250 - - 5,920 - - 6 32,296 - - - - - 225,000 - - - - - - - 6,773 $718,130 5915,153 $20,114 $24,950 $68,134 $4,993,215 $4,574,385 $ - $ - $ - $ - $ - $ - $28,862 - - - - - 5,433 8,203 - - - - - - 1,000 - - 20,114 - - 20,114 - - - - - - - 6,773 0 0 20,114 0 0 25,547 44,838 - - - - - - 205,000 718,130 915,153 - 24,950 68,134 4,967,668 4,324,547 718,130 915,153 0 24,950 68,134 4,967,668 4,529,547 $718,130 $915,153 $20,114 $24,950 $68,134 $4,993,215 $4,574,385 79 - This page intentionally left blank - all 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, 2007 With Comparative Totals For The Year Ended December 31, 2006 Statement 18 Page 1 of 2 401 Budgeted Projects and 500 Capital Equipment 565 Street 406 Brekke Park Revolving Fund Revolving Reconstruction Memorial Revenues: Special assessments $7,162 $ - $ - $ - Charges for services: Connections charges - - - - Rents - - - - Direct charges to developers - - - - Fines and forfeits - - - - Investment income 34,546 46,797 38,734 18 Refunds and reimbursements - 8,600 - - Donations and contributions - 64,775 - - Total revenues 41,708 120,172 38,734 18 Expenditures: Public works: Current: Material and supplies - 45,935 - - Contractual services 22,171 197,345 - - Capital outlay - 107,127 - - Construction costs - 51,515 - - Total expenditures 22,171 401,922 0 0 Revenues over (under) expenditures 19,537 (281,750) 38,734 18 Other financing sources (uses): Sale of capital assets - - - _ Transfers in 48,490 404,400 225,000 - Transfers out - (225,000) - - Total other financing sources (uses) 48,490 179,400 225,000 0 Net change in fund balance 68,027 (102,350) 263,734 18 Fund balance - January 1 723,527 1,033,981 688,138 350 Fund balance - December 31 $791,554 $931,631 $951,872 5368 M . 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, 2007 With Comparative Totals For The Year Ended December 31, 2006 I 711 Water Tower 733 Oakgreen 771 Sanitary Rental Avenue Utilities Sewer Connection Revenues: Special assessments Charges for services: Connections charges - - 4,937 Rents 25,393 - - Direct charges to developers - 1,859 - Fines and forfeits - - Investment income 3 - 24,063 Refunds and reimbursements _ Donations and contributions - - _ Total revenues 29,017 1,859 29,000 Expenditures: Public works: Current: Material and supplies - Contractual services - Capital outlay - - _ Construction costs - 2 - Total expenditures 0 2,603 0 Revenues over (under) expenditures 29,017 (744) 29,000 Other financing sources (uses): Sale of capital assets - - - Transfers in _ 744 - Transfers out - - (25,994) Total other financing sources (uses) 0 744 (25,994) Net change in fund balance 29,017 0 3,006 Fund balance - January 1 57,573 - 476,280 Fund balance - December 31 $86,590 $0 $479,286 I Statement 18 Page 2 of 2 732 Novak 773 AAE - Avenue Street 772 Water Storm Sewer and Utility 735 Well 736 Sewer Totals Nonmajor Capital Project Connection Connection Improvements Rehabilitation Rehabilitation Funds 2007 2006 S - $ - S - $7,162 $50,157 25,656 4,002 - - - - 243,036 - 33,940 44,737 - 402 - - - 6,185 59,596 48,739 243,036 6,587 - 34,595 780,141 - 25,393 23,630 - 244,895 140,609 - - 3,500 1,134 227,995 168,404 - 14,785 73,827 - 64,775 126,125 1,134 619,600 1,366,393 - - - - - 45,935 7,002 - - - - - 219,516 237,097 - - - 9,137 - 116,264 162,842 - - 243,036 - - 297,154 207,678 0 0 243,036 9,137 0 678,869 614,619 59,596 48,739 0 (2,550) 1,134 (59,269) 751,774 - - - - - - 244,099 - - - 27,500 67,000 773,134 549,032 (8,750) (16,000) - - - (275,744) (118,952) (8,750) (16,000) 0 27,500 67,000 497,390 674,179 50,846 32,739 0 24,950 68,134 438,121 1,425,953 667,284 882,414 - - - 4,529,547 3,103,594 $718,130 $915,153 $0 524,950 $68,134 54,967,668 $4,529,547 83 904 Boutwell's 905 McKean 902 Developer 903 Developer Landing Square Escrow Deposit Fund Escrow Fund Escrow Fund Fund Totals - Agency Funds 2007 2006 Assets Cash and investments $126,255 $31,660 $ - $ - $157,915 $177,178 Due from developers 8,440 - - - 8,440 8,934 Accounts receivable 3,000 - - - 3,000 - Total assets $137,695 S31,660 $0 $0 $169,355 $186,112 Liabilities Escrow deposits payable $ - $31,660 $ - $ - $31,660 $78,218 Accounts payable 5,722 - - - 5,722 6,729 Due to developers 131,973 - - - 131,973 101,165 Total liabilities $137,695 $31,660 $0 $o $169,355 $186,112 CITE' OF OAK PARK HEIGHTS, MINNESOTA SUBCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 20 AGENCY FUNDS For The Year Ended December 31, 2007 903 Developer Escrow Fund Assets: Cash and investments $69,318 $31,660 $69,318 $31,660 Liabilities: Escrow deposits payable $69,318 $31,660 $69,318 $31,660 905 McKean Square Escrow Fund Assets: Cash and investments $8,900 $ - $143,354 $ - Liabilities: Escrow deposits payable $8,900 $ - $143,354 $ - Total A2enc Assets: Cash and investments Balance $157,915 $311,632 Balance Due from developers January 1, 8,440 8,934 December 31, Accounts receivable 2007 Additions Deletions 2007 902 Developer Deposit Fund $186,112 $169,355 $320,566 $169,355 Assets: Cash and investments $98,960 $126,255 $98,960 $126,255 Due from developers 8,934 8,440 8,934 8,440 Accounts receivable - 3,000 - 3,000 Total assets $107,894 $137,695 $107,894 $137,695 Liabilities: Accounts payable $6,729 $5,722 $6,729 $5,722 Due to developers 101,165 131,973 101,165 131,973 Total liabilities $107,894 $137,695 $107,894 $137,695 903 Developer Escrow Fund Assets: Cash and investments $69,318 $31,660 $69,318 $31,660 Liabilities: Escrow deposits payable $69,318 $31,660 $69,318 $31,660 905 McKean Square Escrow Fund Assets: Cash and investments $8,900 $ - $143,354 $ - Liabilities: Escrow deposits payable $8,900 $ - $143,354 $ - Total A2enc Assets: Cash and investments $177,178 $157,915 $311,632 $157,915 Due from developers 8,934 8,440 8,934 8,440 Accounts receivable - 3,000 - 3,000 Total assets $186,112 $169,355 $320,566 $169,355 Liabilities: Escrow deposits payable $78,218 $31,660 $212,672 $31,660 Accounts payable 6,729 5,722 6,729 5,722 Due to developers 101,165 131,973 101,165 131,973 Total liabilities $186,112 $169,355 $320,566 $169,355 F -09 -'This page intentionally left blank - :r • 1 i i - This page intentionally left blank - CITY OF OAK PARK HEIGHTS, MINNESOTA NET ASSETS BY COMPONENT Last Four Fiscal Years (Accrual Basis of Accounting) Table I Governmental activities: Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activities net assets Business -type activities: Invested in capital assets, net of related debt Unrestricted Total business -type activities net assets Primary government: Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net assets 2004 2005 2006 2007 $10,059,989 $9,928,521 $11,481,494 $11,799,071 1,192,681 856,611 899,708 614,170 7,326,030 8,213,513 10,290,018 10,950,978 $18,578,700 $18,998,645 $22,671,220 $23,364,219 $5,646,237 $5,985,350 $5,826,582 $6,355,129 834,827 1,108,069 1,382,163 1,355,564 $6,481,064 $7,093,419 $7,208,745 $7,710,693 $15,706,226 $15,913,871 $17,308,076 $18,154,200 1,192,681 856,611 899,708 614,170 8,160,857 9,321,582 11,672,181 12,306,542 $25,059,764 $26,092,064 $29,879,965 $31,074,912 ( ' ) The City implemented GASB Statement No. 34 for the fiscal year ended December 31, 2004. Therefore, infonnation for years prior to 2004 is not available. ;� a CITY OF OAK PARK HEIGHTS, MINNESOTA CHANGES IN NET ASSETS Last Four Fiscal Years (Accrual Basis of Accounting) $365,512 50,337 84,719 Table 2 Page 1 of 2 94,140 2004 2005 2006 2007 Expenses 22,952 91,784 106,569 95,523 Governmental activities: 68,358 88,229 212,635 62,686 General government $832,609 $882,800 $987,597 $1,046,676 Public safety 1,155,243 1,210,179 1,226,042 1,234,769 Public works 602,111 511,137 755,989 796,025 Parks and recreation 123,737 138,378 152,899 184,008 Interest on long -term debt 67,365 55,695 43,965 37,255 Total governmental activities expenses 2,781,065 2,798,189 3,166,492 3,298,733 Business -type activities: Water 323,527 373,996 398,766 387,766 Sanitary sewer 517,595 560,876 661,367 606,458 Sanitation 167,258 34,150 65,149 34,277 Storm sewer 41,082 164,572 147,565 153,848 Total business -type activities expenses 1,049,462 1,133,594 1,272,847 1,182,349 Total primary government expenses $3,830,527 $3,931,783 $4,439,339 $4,481,082 Program revenues Governmental activities: Charges for services: Licenses and permits Inspections - City of Bayport Administrative - Enterprise Fund Direct charges to developers Connection charges Park fees Refunds and reimbursements Other activities Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Charges for services: Water Sanitary sewer Sanitation Storm sewer Capital grants and contributions Total business -type activities program revenues Total primary government program revenues $304,594 $365,512 50,337 84,719 90,860 94,140 315,535 139,191 - 18,326 - 22,952 91,784 106,569 95,523 144,559 68,358 88,229 212,635 62,686 1,229,626 1,126,883 $306,266 $155,820 64,465 63,200 938,298 244,895 780,141 34,595 1,004,240 - 155,080 105,832 116,793 151,002 74,105 142,879 165,397 11,324 3,604,785 909,547 388,198 423,876 502,407 482,100 577,253 705,456 767,207 679,821 96,909 73,546 74,173 73,942 70,878 96,859 97,266 97,764 58,706 - - - 1,191,944 1,299,737 1,441,053 1,333,627 $2,421,570 $2,426,620 $5,045,838 $2,243,174 NE CITY OF OAK PARK HEIGHTS, MINNESOTA CHANGES IN NET ASSETS Last Four Fiscal Years � � (Accrual Basis of Accounting) Table 2 Page 2 of 2 2004 2005 2006 2007 Net (expense) revenue: Governmental activities ($1,551,439) ($1,671,306) $438,293 ($2,389,186) Business -type activities 142,482 166,143 168,206 151,278 Total primary government net (expense) revenue (1,408,957) (1,505,163) 606,499 (2,237,908) General revenues and other changes in net assets Governmental activities: General property taxes Unrestricted grants and contributions Investment earnings Gain on sale of property Miscellaneous Transfers Total governmental activities Business -type activities: Investment earnings Transfers Total business -type activities Total primary government Change in net assets: Governmental activities Business -type activities Total primary government $1,979,288 $2,222,335 $2,417,014 $2,730,994 3,060 2,040 29,838 111,090 199,737 258,614 425,160 532,827 - - 244,099 9,237 29,125 25,206 16,254 27,626 90,423 (416,944) 101,917 (329,589) 2,301,633 2,091,251 3,234,282 3,082,185 19,148 29,268 49,037 60,103 (90,423) 416,944 (101,917) 329,589 (71,275) 446,212 (52,880) 389,692 $2,230,358 $2,537,463 $3,181,402 $3,471,877 $750,194 5419,945 $3,672,575 $692,999 71,207 612,355 115,326 540,970 $821,401 $1,032,300 $3,787,901 $1,233,969 ( ' ) 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. m CITY OF OAK PARK HEIGHTS, MINNESOTA FUND BALANCES, GOVERNMENTAL FUNDS Last Four Fiscal Years (Modified Accrual Basis of Accounting) Table 3 All other governmental funds: Reserved for debt service 2004 2005 2006 2007 General Fund: Reserved 81,167 75,721 86,326 100,960 Unreserved: - - 47,315 - Designated for cash flow 1,147,000 1,237,000 1,409,000 1,698,000 Designated for employee benefits 133,961 141,533 169,633 183,000 Designated for contingencies 419,000 439,000 493,000 595,000 Undesignated 147,647 286,210 230,869 39,620 Total general fund $1,847,608 $2,103,743 $2,302,502 $2,515,620 All other governmental funds: Reserved for debt service $454,694 $214,783 5717,829 $460,263 Unreserved, reported in: Special revenue funds 81,167 75,721 86,326 100,960 Debt service funds - - 47,315 - Capital projects funds 5,381,734 6,107,908 8,022,588 8,480,884 Total all other governmental funds $5,917,595 $6,398,412 $8,874,058 $9,042,107 ( ' ) 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. 92 C'IT'Y OF OAK PARK HEIGHTS, MINNESOTA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS Last Four Fiscal Years Table 4 Revenues: General property taxes Special assessments Intergovernmental Licenses and permits Charges for services Fines and forfeits Earnings on investments Direct charges to developers Refunds and reimbursements Other Total revenues Expenditures: Current: General government Public safety Public works Parks and recreation Capital outlay Debt service: Principal retirement Interest Construction /acquisition costs Total expenditures Revenues over expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Debt service as a percentage of noncapital expenditures Debt service as percentage of total expenditures 2004 2005 2006 2007 $1,969,207 $2,218,906 $2,423,246 $2,687,730 305,758 225,516 553,450 42,342 70,362 101,519 102,818 188,594 304,594 365,512 306,266 155,820 150,126 294,846 1,886,776 192,545 78,274 69,850 84,730 66,189 199,737 258,614 425,160 532,827 374,241 139,191 938,298 244,895 109,958 125,405 155,080 105,832 20,327 10,117 136,514 83,064 3,582,584 3,809,476 7,012,338 4,299,838 793,871 851,437 941,875 1,002,763 1,119,533 1,172,803 1,180,441 1,193,451 296,997 208,848 423,010 458,241 88,180 99,980 107,071 138,491 50,104 21,000 443,822 411,101 400,000 395,000 190,000 125,000 68,334 56,710 44,535 37,688 622,218 358,344 1,353,195 916,653 3,439,237 3,164,122 4,683,949 4,283,388 143,347 645,354 2,328,389 16,450 - - 244,099 9,237 178,923 180,098 190,417 432,280 (88,500) (88,500) (88,500) (76,800) 90,423 91,598 346,016 364,717 $233,770 $736,952 $2,674,405 $381,167 16.9% 16.2% 8.1% 5.5% 13.6% 14.3% 5.0% 3.8% ( ' ) 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. R 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 ofEMV 1997 $6,728,690 $750,991 S5,977,699 22.898 $223,205,500 112.56% Information Not Available 1998 6,108,080 663,765 5,444,315 27.141 238,211,800 112.19% Information Not Available 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 3,269,468 2,687,650 1,415,909 112,921 7,485,948 1,037,753 6,448,195 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% 2008 3,429,104 3,679,188 3,060,144 82,329 10,250,765 1,508,660 8,742,105 36.343 673,570,600 117.26% Source: Continuing Disclosure Document (I)Thc components of tax capacity prior to 1999 arc not available I CITE' OF OAK PARK HEIGHTS, MINNESOTA DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES Last Ten Fiscal Years Table 6 Source: Continuing Disclosure Document, Washington County website. 95 City Overlapping Rates Fiscal Direct School Other Year Rate County District Districts Total 1998 26363 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 9358 93.838 2006 38.377 26.968 19.471 7.016 91.832 2007 35.731 25.673 19.004 3.563 83.971 Source: Continuing Disclosure Document, Washington County website. 95 CITY OF OAK PARK HEIGHTS, MINNESOTA PRINCIPAL PROPERTY TAXPAYERS Current Year and Nine Years Ago 2007 Source: Continuing Disclosure Document Rank 2 3 4 5 6 7 8 9 10 1998 Table 7 Percentage Taxable of Total City Capacity Taxpayer Value Value Value Xcel Energy $1,924,048 SC Mall LLC 404,224 OPH Pat LLC & OPH Val LLC 318,740 Prudential insurance Co. 243,294 Menard Inc. 216,930 VSSA Housing 290,608 Wal -Mart Stores, Inc. 182,592 VSSA McKean West LLC 220,682 W.A.T.E. Enterprises Inc. 125,155 Raduenz Dealership 113,688 Total $4,039,961 Total All Property $8,471,738 Source: Continuing Disclosure Document Rank 2 3 4 5 6 7 8 9 10 1998 Table 7 Percentage of Total City Taxable Capacity Capacity Value Value 22.71% $2,832,240 4.77% 0 3.76% 0 2.87% 0 2.56% 0 3.43% 0 2.16% 126,434 2.60% 0 1.48% 0 1.34% 0 47.69% $2,958,674 $6,108,080 Rank 1 5 Percentage of Total City Capacity Value 46.37% 0.00% 0.00% 0.00% 0.00% 0.00% 2.07% 0.00% 0.00% 0.00% 48.44% CITY OF OAK PARK HEIGHTS, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Fiscal Taxes Collected Within The Collections Year Levied Fiscal Year of the Levy in Ended For The i Percentage Subsequent December 31, Fiscal Year ' ' Amount of Levy 1998 $1,524,047 $1,541,155 101.12% 1999 1,409,400 1,394,993 98.98% 2000 1,440,200 1,426,390 99.04% 2001 1,588,435 1,566,938 98.65% 2002 1,967,579 1,904,488 96.79% 2003 1,993,003 1,891,046 94.88% 2004 1,965,536 1,938,726 98.64% 2005 2,208,178 2,176,290 98.56% 2006 2,395,044 2,363,192 98.67% 2007 2,781,489 2,646,421 95.14% 1. The levy amount presented is after deduction for Market Value Homestead Credit. Table 8 Total Collections to Date 13,195 13,315 18,162 16,740 23,685 24,176 24,542 17,173 Amount 1,408,188 1,439,705 1,585,100 1,921,228 1,914,731 1,962,902 2,200,832 2,380,365 2,646,421 Percentage of Levy 99.91% 99.97% 99.79% 97.64% 96.07% 99.87% 99.67% 99.39% 95.14% 97 CITY OF OAK PARK HEIGHTS, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Table 9 a• Governmental Activities General Percentage Fiscal Obligation Improvement of Tax Per Year Bonds Bonds Total Capacity Capita (a) 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 1,235,000 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 2007 750,000 750,000 9.61% 161 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. a• CITY OF OAK PARK HEIGHTS, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT December 31, 2007 "M71a[i] Debt repaid with property taxes Independent School District No. 834 Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicable' Debt Debt repaid with property taxes Independent School District No. 834 65,563,464 9.09% $5,959,719 Washington County 54,295,000 2.85% 1,547,408 NMISD No. 916 12,320,000 1.21% 149,072 Metropolitan Council 8,673,927 0.26% 22,552 Metro Transit 129,593,684 0.30% 388,781 Subtotal - overlapping debt 8,067,532 City direct debt 750,000 100.00% 750,000 Total direct and overlapping debt 58,817,532 Sources: Continuing Disclosure Document `' CITY OF OAK PARK HEIGHTS, MINNESOTA LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years Legal Debt Margin Calculation for Fiscal Year 2007 Market value $579,089,800 Debt limit (2% of market value) 11,581,796 Debt applicable to limit: General obligation bonds 750,000 Less: Amount set aside for repayment of general obligation debt (460,263) Total net debt applicable to limit 289,737 Legal debt margin $11,292,059 Table 11 Legal Debt Margin Calculation for Fiscal Years 1997 Through 2006 1! Net Debt Legal Amount of Debt Fiscal Debt Applicable to Debt Applicable to Year Limit Limit Margin Debt Limit 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% 2006 10,787,142 - 10,787,142 0.00% 1! CITY OF OAK PARK HEIGHTS, MINNESOTA PLEDGED REVENUE COVERAGE Last Ten Fiscal Years Table 12 101 Improvement Bonds Special Fiscal Assessment Debt Service Year Collections Principal Interest Coverage 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 2007 35,180 125,000 37,688 0.216 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 funds. 101 CITY OF OAK PARK HEIGHTS, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years Fiscal Unemployment Personal Table 13 Per Capita Personal Income � � Year Population Rate' ' Income" 1998 3,986 (1) 1999 4,015 (1) 2000 3,957 (1) 2001 3,977 2.60% 2002 4,291 3.60% 2003 4,329 4.10% 2004 4,633 4.00% 2005 4,664 3.40% 2006 4,676 3.50% 2007 (1) (1) Sources: Metropolitan Council (population), Continuing Disclosure Document (unemployment rate) (I) Information Not Available (2) Washington County rate CITY OF OAK PARK HEIGHTS, MINNESOTA PRINCIPAL EMPLOYERS Current Year and Nine Years Ago Employer Andersen Corporation State of Minnesota Correctional Facility Wal -Mart Stores, Inc. ISD No. 834, Stillwater Kohl's Stillwater Ford Stillwater Motors Menard's Inc. Lowe's Kowalski's VSSA - Boutwell's Landing /McKean Square Herberger's Department Store Xcel Energy Dahl Tech, Inc. City of Oak Park Heights Schwantes Heating & Air Conditioning Total Source: Continuing Disclosure Document Product Service Window Manufacturer Government Correctional Institution Retail Public Education Retail Auto Dealership /Service Repair Auto Dealership /Service Repair Retail Lumber /Hardware Retail Retail /Grocery Senior Community Housing Retail Store Electric Utility Plastics Products City Government Sheet Metal Fabrication ( ' ) Principal employer information prior to 1999 is not available Table 14 2,270 963 650 - 365 350 310 150 175 163 113 - 86 - 125 - 101 - 125 - 125 - 95 - - 125 - 105 - 30 - 24 - 16 2,270 963 CITY OF OAK PARK HEIGHTS, MINNESOTA FULL -TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program General government: Administration Finance Building inspections Public safety Public works Total Source: City Finance Department Full -Time Equivalent Employees as of December 31, 1998 1999 2000 3 3 3 2 3 3 3 3 3 10 10 10 3 3 3 21 22 22 � .1 Table 15 Full -Time Equivalent Employees as of December 31, 2001 2002 2003 2004 2005 2006 2007 3 3 2 2 2 2 2 3 3 3 3 3 3 3 3 3 2 2 2 2 2 10 10 10 10 10 10 10 3 3 3 4 4 4 4 22 22 20 21 21 21 21 105 CITE' OF OAK PARK HEIGHTS, MINNESOTA OPERATING INDICATORS BY FUNCTION /PROGRAM Last Ten Fiscal Years Fiscal Year Function/Program Police: Physical arrests Parking violations Traffic violations Fire: Fire and related calls Medical calls Building inspection: Permits issued: Residential Commercial Total permit valuation Water: Connections Average daily demand (thousands of gallons) Sewer: Connections Sources: Various City departments. (a)Information not available 1998 1999 2000 289 245 221 (a) 114 162 (a) 593 728 44 52 55 62 82 107 32 62 13 5 35 6 S7,738,358 $13,439,362 519,485,026 1,122 1,152 1,219 567,000 577,000 570,000 1,173 1,205 1,281 I' 1 Table 16 Fiscal Year 2001 2002 2003 2004 2005 2006 2007 256 263 237 308 251 240 207 218 155 145 118 123 124 92 859 611 712 1,023 1,089 738 613 61 108 122 113 115 119 106 139 174 164 200 251 302 270 46 54 44 48 2 11 19 73 75 13 11 13 15 8 $5,799,263 $11,651,369 $19,878,493 $18,043,522 $12,732,475 $36,975,066 $6,521,063 1,201 1,198 1,212 1,259 1,277 1,289 1,304 600,000 576,000 645,000 611,000 614,000 676,000 714,000 1,288 1,281 1,273 1,235 1,251 1,264 1,274 107 CITY OF OAK PARK HEIGHTS, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION /PROGRAM Last Nine Fiscal Years Fiscal Year Function/Program Police: Stations Squad cars Fire stations Other public works: Miles of paved streets Streetlights Traffic signals Parks and recreation: Parkland acreage Number of parks Water: Water mains (miles) Fire hydrants Storage capacity (thousands of gallons) Wastewater: Sanitary sewers (miles) Storm sewers (miles) Sources: Various City departments. ... 1 1 1 7 7 7 14.0 22.0 22.0 261 265 265 2 2 2 80 80 80 4 4 4 25.4 25.4 25.5 299 299 302 750 750 750 219 21.9 21.9 11.8 11.8 11.8 Table 17 Fiscal Year 2002 1 7 22.0 265 2 105 4 25.5 302 750 21.9 12.0 2003 1 7 22.0 330 2 105 4 26.6 316 750 21.9 12.5 2004 1 7 22.0 392 2 105 4 26.6 316 750 23.3 12.5 2005 I 6 22.0 392 2 105 4 26.6 316 750 23.3 12..5 2006 2007 1 6 6 22.0 22.0 392 396 2 2 105 104 5 5 26.6 26.8 316 316 750 750 23.3 24.9 12.5 12.6 109 - This page intentionally left Flank - mil