HomeMy WebLinkAboutAnnual Financial ReportANNUAL FINANCIAL REPORT
December 31, 2008
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CITY OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
INTRODUCTORY SECTION
Elected and Appointed Officials 3
FINANCIAL SECTION
Independent Auditor's Report
7
Management's Discussion and Analysis
9
Basic Financial Statements:
Government -Wide Financial Statements:
Statement of Net Assets
Statement 1
25
Statement of Activities
Statement 2
26
Fund Financial Statements:
Balance Sheet - Governmental Funds
Statement 3
28
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental Funds
Statement 4
30
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds
Statement 5
32
Statement of Net Assets - Proprietary Funds
Statement 6
33
Statement of Revenues, Expenses and Changes in Fund Net Assets -
Proprietary Funds
Statement 7
34
Statement of Cash Flows - Proprietary Funds
Statement 8
35
Statement of Fiduciary Net Assets - Agency Funds
Statement 9
36
Notes to Financial Statements
37
Required Supplementary Information:
Budgetary Comparison Schedule - General Fund
Statement 10
60
Budgetary Comparison Schedule - Note to RSI
65
Combining and Individual Fund Statements:
Combining Balance Sheet - Nonmajor Governmental Funds
Statement 11
70
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental Funds
Statement 12
71
CITE' OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 13 72
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue Funds Statement 14 73
Subcombining Balance Sheet - Nonmajor Debt Service Fund - G.O. Refunding Bonds of 2002 Statement 15 74
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service Fund - G.O. Refunding Bonds of 2002 Statement 16 75
Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 17 76
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project Funds Statement 18 78
Agency Funds:
Subcombining Balance Sheet Statement 19 80
Subcombining Statement of Changes in Assets and Liabilities Statement 20 81
STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Assets by Component - Last Five Fiscal Years
Table 1
85
Changes in Net Assets - Last Five Fiscal Years
Table 2
86
Fund Balances, Governmental Funds - Last Five Fiscal Years
Table 3
88
Changes in Fund Balances, Governmental Funds - Last Five Fiscal Years
Table 4
89
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of Taxable Property
Table 5
90
Direct and Overlapping Property Tax Capacity Rates
Table 6
91
Principal Property Taxpayers
Table 7
92
Property Tax Levies and Collections
Table 8
93
Debt Capacity:
Ratios of Outstanding Debt by Type
Table 9
94
Direct and Overlapping Governmental Activities Debt
Table 10
95
Legal Debt Margin Information
Table 11
96
Pledged Revenue Coverage
Table 12
97
Demographic and Economic:
Demographic and Economic Statistics
Table 13
98
Principal Employers
Table 14
99
Operating Information:
Full -Time Equivalent City Government Employees By Function /Program
Table 15
100
Operating Indicators by Function /Program
Table 16
102
Capital Asset Statistics by Function/Program
Table 17
104
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CITY OF OAK PARK HEIGHTS, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
December 31, 2008
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
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;i��a Ell-llill � 111 � ,-,
F :. 0
In accordance with Government Auditing Standards, we have also issued our report dated
April 14, 2009 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 14, 2009
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, 2008.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$31,661,784 (Net assets). Of this amount, $12,870,397 (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 $586,873
As of the close of the current fiscal year, the City's governmental funds reported combined
ending fund balances of $17,823,476, an increase of $6,265,749. The increase is primarily
due to the issuance of the 2008A Bonds. At December 31, 2008, there were unspent bond
proceeds of $5.9 million.
At the end of the current fiscal year the general fund balance was $2,616,370 of which
$2,271,000 is designated.
The General Fund balance increased by $100,750 as a result of positive budget variances in
revenues and expenditures.
The City transferred $320,000 from the General Fund to the Budgeted Projects Fund for
capital improvements for streets, parks, civil defense, and general government. The City also
transferred $470,000 from the General Fund to the Street Reconstruction Fund,
The City issued the $6,300,000 General Obligation Bonds, Series 2008A to finance
construction of a new City Hall.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic
financial statements. The City's basic financial statements comprise three components: 1)
government -wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains other supplementary information in addition
to the basic financial statements themselves.
Management's Discussion and Analysis
Government -wide financial statements. The government -wide financial statements are
designed to provide readers with a broad overview of the City's finances, in a manner similar
to a private- sector business.
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.
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
III
Management's Discussion and Analysis
governmental fund statement of revenues, expenditures and change in fund balance provide a
reconciliation to facilitate this comparison between governmental funds and governmental
activities.
The City maintains seven individual major governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures and changes in fund balance for the following major funds:
® General Fund
• G.O. Improvement Bonds of 1998 — Debt Service Fund
• Budgeted Projects and Equipment Revolving Fund — Capital Project Fund
• Water Tower Rehabilitation — Capital Project Fund
• Renewal and Replacement Fund — Capital Project Fund
• Capital Revolving Fund — Capital Project Fund
• City Hall Improvements — Capital Project Fund
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the form
of subcombining statements elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund. A budgetary
comparison schedule has been provided for this fund to demonstrate compliance with this
budget — see Statement 10.
The basic governmental fund financial statements are statements 3 through S 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.
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
Management's Discussion and Analysis
Beginning in 2008, the Sanitation activity is accounted for in the City's General Fund. The
Sanitation Fund was closed during 2008. The basic proprietary fund financial statements are
statements 6 through 8 of this report.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the City. Fiduciary funds are not reflected by the government -wide financial
statements because the resources of those funds are not available to support the City's own
programs.
The basic fiduciary fund statements are Statements 9, 19 and 20.
Notes to the financial statements. The notes provide additional information that is essential
to a full understanding of the data provided in the government —wide and fund financial
statements. The notes to the financial statements can be found following Statement 9.
Other information. The combining statements referred to earlier in connection with non -
major governmental funds are presented immediately following the required supplementary
information on budgetary comparisons. Combining and individual fund statements and
schedules are presented as Statements 11 through 20.
Government -Wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's
financial position. In the case of the City, assets exceeded liabilities by $31,661,784 at the
close of the most recent fiscal year.
The largest portion of the City's net assets ($18,664,140 or 58% percent) reflects its
investment in capital assets (e.g. land, improvements, buildings and structures, machinery
and equipment, and furniture and fixtures) less any related debt used to acquire those assets
that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's
investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
12
Management's Discussion and Analysis
City of Oak Park Heights' Net Assets
A portion of the City's net assets represent resources that are subject to external restrictions
on how they may be used. The remaining balance of unrestricted net assets may be used to
meet the City's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three
categories of net assets, both for the government as a whole, as well as for its separate
governmental and business -type activities.
13
Governmental Activities
Business -Type Activities
Totals
2008
2007
2008
2007
2008
2007
Current and other assets
$18,589,268
$11,985,165
$1,206,258
$1,444,178
$19,795,526
$13,429,343
Capital assets
12,676,399
12,549,071
6,227,796
6,355,129
18,904,195
18,904,200
Total assets
$31,265,667
$24,534,236
$7,434,054
$7,799,307
$38,699,721
$32,333,543
Long -term liabilities outstanding
$6,533,285
$988,019
$24,778
$63,872
$6,558,063
$1,051,891
Other liabilities
463,599
181,998
16,275
24,742
479,874
206,740
Total liabilities
$6,996,884
$1,170,017
$41,053
$88,614
$7,037,937
$1,258,631
Net assets:
Invested in capital assets, net ofrelated debt
$12,436,344
$11,799,071
$6,227,796
$6,355,129
$18,664,140
$18,154,200
Restricted
127,247
614,170
-
-
127,247
614,170
Unrestricted
11,705,192
10,950,978
1,165,205
1,355,564
12, 870,397
12,306,542
Total net assets
$24,268,783
$23,364,219
$7,393,001
$7,710,693
$31,661,784
$31,074,912
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.
13
Management's Discussion and Analysis
Governmental Activities
Governmental activities increased the City's net assets by $904,564 during 2008. 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
Abatement of prior year property taxes
Water
Sanitary sewer
Stonn sewer
Sanitation
Total expenses
Increase in net assets before transfers
Transfers
Change in net assets
Net assets - January 1, as previously reported
Prior period adjustment
Net assets - January 1, as restated
Net assets - December 31
Governmental Activities Business -Type Activities Totals
2008 2007 2008 2007 2008 2007
$503,253 $755,344 $1,207,218
90,548 142,879
10,091 11,324
3,261,049 2,730,994
$1,333,627 $1,710,471
$2,088,971
90,548
142,879
10,091
11,324
3,261,049
2,730,994
56,693
111,090
56,693
111,090
20,895
9,237
20,895
9,237
22,148
27,626
- - 22,148
27,626
606,996
532,827
43,080 60,103 650,076
592,930
4,571,673
4,321,321
1,250,298 1,393,730 5,821,971
5,715,051
1,477,836
1,046,676
1,347,164
1,234,769
796,532
796,025
224,426
184,008
138,399
37,255
115,000
-
3,298,733
4,099,357
472,316
1,022,588
1,477,836
1,046,676
586,873
1,233,969
1,347,164
1,234,769
(432,248)
329,589
796,532
796,025
224,426
184,008
138,399
37,255
-
-
115,000
-
405,965
387,766
405,965
387,766
670,661
606,458
670,661
606,458
59,115
34,277
59,115
34,277
-
153,848
-
153,848
1,135,741
1,182,349
5,235,098
4,481,082
$7,393,001
$7,710,692
$31,661,784
$31,074,911
472,316
1,022,588
114,557
211,381
586,873
1,233,969
432,248
(329,589)
(432,248)
329,589
904,564
692,999
(317,691)
540,970
586,873
1,233,969
23,364,219
22,671,220
7,710,692
7,208,744
31,074,911
29,879,964
-
-
-
(39,022)
-
(39,022)
23,364,219
22,671,220
7,710,692
7,169,722
31,074,911
29,840,942
$24,268,783
$23,364,219
$7,393,001
$7,710,692
$31,661,784
$31,074,911
El
Management's Discussion and Analysis
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenditures:
Governmental Activities -Revenues
Operating
grants and
Capital grants
Unrestricted
contributions
and
Garr on sale investment Charges for services
2%
contributions
ofca ital earnings 13% 11%
\
1%
Other s
revenue assets 1%
\li
1%
Property
taxes 71 %
Governmental Activities - Expenses
Public
Safety 33%
IN
Abatement of
prior year
Interest on property
General
Parks and Long- Term taxes 3%
Recreation 5% Debt 3% Government
360/
Management's Discussion and Analysis
Business-Type Activities
Business -type activities decreased net assets by $317,691 during 2008. Below are graphs
showing the business -type activities revenue and expense comparisons:
Business -Type Activities - Revenues
Unrestricted
Investment
Charges for Services
97o/
Business -Type Activities -Expenses
Storm Sewer 5%
Water 36%
Sanitary Sewer 59%
16
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 -teen 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 $17,823,476.
The General Fund increased by $100,750 in 2008, which was due primarily to expenditures
less than budget expectations.
The G.O. Improvement Bonds of 1998 debt service fund decreased by ($460,263) during
2008. This bond issue was called for prepayment and the outstanding balance of $750,000
was paid in 2008.
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 2011. The
fund balance of this fund increased by $294,966 in 2008 due to the interfund transfers from
the Water Fund ($160,000) and Water Tower Rental Fund ($112,112). This fund also
receives an annual transfer from the Water Fund in an amount equal to depreciation expense
of the rehabilitation of water tower #1.
The Renewal and Replacement capital project fund increased by $315,975 during 2008. This
fund receives an annual transfer from the proprietary funds in an amount equal to
depreciation expense on contributed capital assets.
The City Hall Improvements Fund was established in 2008 to account for the construction of
the new City Hall. Financing is provided by the $6.3M Bonds issued in 2008. The fund
balance of this fund increased $5,840,475 in 2008.
17
Management's Discussion and Analysis
The Capital Revolving Fund increased $28,942 in 2008. The fund balance was $820,496 at
December 31, 2008.
The nonmajor special revenue funds increased by $1,221 during 2008.
The nonmajor debt service funds increased by $127,427 during 2008.
The nonmajor capital project funds increased by $153,819 during 2008.
Proprietary funds. The City's proprietary funds provide the same type of infonnation
found in the government -wide financial statements, but in more detail.
Budgetary Highlights
General Fund
The expenditure budget was amended to provide for changes in activity that occurred during
the year. Amendments totaled $16,700.
E
Management's Discussion and Analysis
Capital Asset and Debt Administration
Capital assets. The City's investment in capital assets for its governmental and business -
type activities as of December 31, 2008, amounts to $18,904,195 (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
(filet of Depreciation)
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets, not being depreciated:
Land $2,188,931 $ - $ - $2,188,931
Construction in progress 176,443 771,198 (223,882) 723,759
Total capital assets, not being depreciated 2,365,374 771,198 (223,882) 2,912,690
Capital assets, being depreciated
Buildings and structures
1,584,031
-
- 1,584,031
Other improvements
886,154
-
- 886,154
Machinery and equipment
492,597
88,824
(69,440) 511,981
Furniture and fixtures
269,306
9,558
- 278,864
Infrastructure
12,188,151
184,043
- 12,372,194
Total capital assets, being depreciated
15,420,239
282,425
(69,440) 15,633,224
Less accumulated depreciation foi
Buildings and structures
447,535
209,838
-
657,373
Other improvements
149,686
12,250
-
161,936
Machinery and equipment
278,037
65,705
(69,046)
274,696
Furniture and fixtures
125,610
21,302
-
146,912
Infrastructure
4,235,674
392,924
-
4,628,598
Total accumulated depreciation
5,236,542
702,019
(69,046)
5,869,515
Total capital assets being depreciated - net
10,183,697
(419,594)
(394)
9,763,709
Governmental activities capital assets -net
$12,549,071
$351,604
($224,276)
$12,676,399
19
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
1,706,702
71,593
-
1,778,295
253,124
11,241
264,365
7,334,849
-
7,334,849
9,294,675
82,834
0
9,377,509
552,554
49,497
-
602,051
133,930
12,577
146,507
2,313,065
148,090
2,461,155
2,999,549
210,164
0
3,209,713
6,295,126
(127,330)
0
6,167,796
$6,355,126
($127,330)
$0
$6,227,796
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 $6,300,000, an increase of $5,550,000 from 2007.
Additional long -term debt in the amount of $258,063 for compensated absences was also
outstanding at the end of 2008.
City of Oak Park Heights' Outstanding Debt
General obligation improvement bonds and compensated absences:
Governmental Activities Business -Type Activities
2008 2007 2008 2007
Totals
2008 2007
General Obligation Bonds $6,300,000 $750,000 $ - $ - $6,300,000 $750,000
Compensated absences 233,285 225,873 24,778 25,842 258,063 251,715
Total $6,533,285 $975,873 $24,778 $25,842 $6,558,063 $1,001,715
20
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 $13,471,412. Of the
City's 2008A Capital Improvement Bonds is counted within the statutory limitation.
Additional information on the City's long -term debt can be found in Note 5.
Requests for information. This financial report is designed to provide a general overview
of the City's finances for all those with an interest in the government's finances. Questions
concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Director of Finance, 14168 Oak Park Boulevard, Oak
Park Heights, Minnesota 55082 -2007.
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ME
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2008
Primary Government
Assets:
Cash and investments
Accrued interest
Accounts receivable - net
Due from other govermmental units
Due from developers
Prepaid items
Taxes receivable:
Delinquent
Due from County
Special assessments receivable
Unamortized bond issuance costs
Capital assets (net of accumulated depreciation):
Land
Building and structures
Other improvements
Machinery and equipment
Furniture and fixtures
Infrastructure
Construction in progress
Total assets
Liabilities:
Accounts payable
Salaries payable
Contracts payable
Due to other governmental units
Due to developers
Accrued interest payable
Compensated absences payable:
Due within one year
Due in more than one year
Bonds payable:
Due within one year
Due in more than one year
Total liabilities
Statement 1
Governmental
Business -Type
Totals
2,248,931
Activities
Activities
2008
2007
$17,854,672
$868,230
$18,722,902
$12,345,319
319,045
22,804
341,849
414,320
34,186
284,328
318,514
340,733
41,883
380
42,263
43,147
-
-
-
6,427
-
30,516
30,516
29,687
71,337
-
71,337
82,095
23,355
-
23,355
13,708
136,478
-
136,478
153,907
108,312
-
108,312
-
2,188,931
60,000
2,248,931
2,248,931
926,658
1,176,244
2,102,902
2,290,644
724,218
-
724,218
736,468
237,285
117,858
355,143
341,870
131,952
-
131,952
135,580
7,743,596
4,873,694
12,617,290
12,974,264
723,759
-
723,759
176,443
31,265,667
7,434,054
38,699,721
32,333,543
382,438
11,390
393,828
211,071
7,787
1,370
9,157
9,322
7,207
-
7,207
2,390
6,791
3,515
10,306
11,311
50,000
-
50,000
20,114
9,376
-
9,376
2,708
7,092
754
7,846
44,975
226,193
24,024
250,217
206,740
135,000
-
135,000
750,000
6,165,000
-
6,165,000
-
6,996,884
41,053
7,037,937
1,258,631
Net assets:
Invested in capital assets, net of related debt
12,436,344
6,227,796 18,664,140
18,154,200
Restricted for:
Debt service
127,247
- 127,247
614,170
Unrestricted
11,705,192
1,165,205 12,870,397
12,306,542
Total net assets
$24,268,783
$7,393,001 $31,661,784
$31,074,912
The accompanying notes are an integral part of these financial statements
25
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2008
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
$1,477,836
1,347,164
796,532
224,426
138,399
3,984,357
405,965
670,661
59,115
1,135,741
$5,120,098
Charges For
Services
$93,429
383,460
26,364
503,253
475,658
656,809
74,257
494
1,207,218
$1,710,471
The accompanying notes are an integral part of these financial statements.
26
Statement 2
The accompanying notes are an integral part of these financial statements.
27
Net (Expense) Revenue and
Program Revenues
Changes in Net Assets
Operating Capital
Primary Government
Grants and Grants and
Governmental
Business -Type
Totals
Contributions Contributions
Activities
Activities
2008
2007
($1,384,407)
$ -
($1,384,407)
($906,384)
74,090 -
(889,614)
-
(889,614)
(861,864)
10,358 10,091
(749,719)
-
(749,719)
(464,450)
6,100 -
(218,326)
-
(218,326)
(119,233)
- -
(138,399)
-
(138,399)
(37,255)
90,548 10,091
(3,380,465)
0
(3,380,465)
(2,389,186)
- -
-
69,693
69,693
94,334
_ -
-
(13,852)
(13,852)
73,363
_ _
-
15,142
15,142
39,665
- -
-
494
494
(56,084)
0 0
0
71,477
71,477
151,278
$90,548 $10,091
(3,380,465)
71,477
(3,308,988)
(2,237,908)
General revenues:
General property taxes
3,261,049
-
3,261,049
2,730,994
Grants and contributions not
restricted to specific programs
56,693
-
56,693
111,090
Unrestricted investment earnings
606,996
43,080
650,076
592,930
Gain on sale of capital assets
20,895
-
20,895
9,237
Other
22,148
-
22,148
27,626
Abatement of property taxes
(115,000)
-
(115,000)
-
Transfers
432,248
(432,248)
-
-
Total general revenues
and transfers
4,285,029
(389,168)
3,895,861
3,471,877
Change in net assets
904,564
(317,691)
586,873
1,233,969
Net assets - beginning, as previously reported
23,364,219
7,710,692
31,074,911
29,879,964
Prior period adjustment
-
-
-
(39,022)
Net assets - beginning, as restated
23,364,219
7,710,692
31,074,911
29,840,942
Net assets - ending
$24,268,783
$7,393,001
$31,661,784
$31,074,911
The accompanying notes are an integral part of these financial statements.
27
CITY OF OAK PARK HEIGHTS, MINNESOTA
BALANCESHEET
GOVERNMENTAL FUNDS
December 31, 2008
Fund balance reported above
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources, and therefore, are not reported in the fiords.
Other long -term assets are not available to pay for current- period expenditures and, therefore, are deferred in the funds.
Long -term liabilities, are not due and payable in the current period and therefore are not reported in the finds:
Bonds payable
Compensated absences payable
Accrued interest payable
Net assets of governmental activities
The accompanying notes are an integral part of these financial statements.
28
401 Budgeted
Projects and
Equipment
500 Capital
General Fund
Revolving
Revolving Fund
Assets
Cash and investments
$2,755,611
$820,731
$736,298
Accrued interest receivable
49,630
18,074
16,521
Accounts receivable - net
34,176
10
-
Due from other governmental units
41,883
-
-
Due from developers
-
_
-
Interfund loan receivable
-
-
65,000
Taxes receivable:
Delinquent
71,337
-
-
Due from county
23,355
-
-
Special assessments receivable
1,732
-
134,746
Total assets
$2,977,724
$838,815
$952,565
Liabilities and Fund Balances
Liabilities:
Accounts payable
$275,439
$37,360
$149
Salaries payable
7,787
-
_
Contracts payable
-
7,207
-
Due to other governmental units
6,791
-
-
Due to developers
-
Interfimd loan payable
-
_
-
Deferred revenue
71,337
-
131,920
Total liabilities
361,354
44,567
132,069
Fund balance:
Reserved
-
-
-
Unreserved:
Designated reported in General Fund
2,271,000
-
-
Designated reported in Special Revenue Funds
-
-
_
Designated reported in Capital Project Funds
-
794,248
820,496
Undesignated reported in General Fund
345,370
-
-
Undesignated reported in Capital Project Funds
-
-
_
Total fiord balance
2,616,370
794,248
820,496
Total liabilities and fund balance
$2,977,724
$838,815
$952,565
Fund balance reported above
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources, and therefore, are not reported in the fiords.
Other long -term assets are not available to pay for current- period expenditures and, therefore, are deferred in the funds.
Long -term liabilities, are not due and payable in the current period and therefore are not reported in the finds:
Bonds payable
Compensated absences payable
Accrued interest payable
Net assets of governmental activities
The accompanying notes are an integral part of these financial statements.
28
Statement 3
525 G.O.
710 Renewal
Improvement
and
Bonds of 1998
Replacement 734 Water Other
Debt Service
572 City Hall Capital Project Tower Governmental
Fund
Improvements Fund Rehabilitation Funds
Total Governmental Finds
2008
2007
$ - $5,833,925 $3,483,590 $142,631 $4,081,886 $17,854,672
$11,304,644
- 70,025 75,412 2,522 86,861 319,045
372,254
- - - - - 34,186
8,983
- - - - - 41,883
43,147
- - - - - -
6,427
- - - - - 65,000
225,000
- - - - - 71,337
82,095
- - - - 23,355
13,708
- - - - - 136,478
153,907
$0 $5,903,950 $3,559,002 $145,153 $4,168,747 $18,545,956
$12,210,165
$ - $63,475
$ -
$ -
$6,015
$382,438
$158,729
- -
-
-
-
7,787
8,732
- -
-
-
-
7,207
2,390
_
6,791
1,471
- -
-
-
50,000
50,000
20,114
65,000
-
65,000
225,000
_ _
_
_
_
203,257
236,002
0 63,475
0
65,000
56,015
722,480
652,438
_ _
_
_
127,247
127,247
460,263
- -
-
-
-
2,271,000
2,476,000
- -
-
-
102,181
102,181
100,960
- 5,840,475
3,559,002
80,153
3,883,304
14,977,678
8,695,697
_ _
_
_
_
345,370
39,620
- -
-
-
-
-
(214,813)
0 5,840,475
3,559,002
80,153
4,112,732
17,823,476
11,557,727
$0 $5,903,950
$3,559,002
$145,153
$4,168,747
$18,545,956
$12,210,165
$17,823,476
$11,557,727
12,676,399
12,549,071
311,569
236,002
(6,300,000)
(750,000)
(233,285)
(225,873)
(9,376)
(2,708)
$24,268,783
$23,364,219
The accompanying notes are an integral part of these financial statements.
29
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2008
Revenues:
General property taxes
Special assessments
Licenses and permits
Intergovernmental
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
Parks and recreation
Abatement of property taxes
Capital outlay
Debt service:
Principal retirement
Interest and other
Bond issuance costs
Construction costs
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Sale of capital assets
Bonds issued
Premium (discount) on bonds issued
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
401 Budgeted
Projects and
Equipment 500 Capital
General Fund Revolving Revolving Fund
525 G.O.
Improvement
Bonds of 1998
Debt Service
Fund
$3,271,807
499 - 31,579 -
203,041 - - -
141,141 - - -
80,320 - - -
63,602 - - -
90,004 34,142 32,712 3,840
134,632 - - -
- 6,100 -
3,985,046 40,242 64,291
3,840
1,075,256 - - -
1,285,050 - - -
466,189 152,489 13,619 -
142,856 - - _
115,000 - - -
800 85,446 - -
21,289
-
-
-
46,566
539,900
-
296,730
(867,000)
-
(21,730)
-
(799,145)
539,900
(21,730)
296,730
100,750
(137,383)
28,942
(460,263)
2,515,620
931,631
791,554
460,263
$2,616,370
$794,248
$820,496
$0
The accompanying notes are an integral part of these financial statements.
30
Statement 4
572 City Hall
Improvements
710 Renewal
and Replacement
Capital Project
Fund
734 Water Other
Tower Governmental Intra- Activity
Rehabilitation Funds Eliminations
21,879
132,278 142,455 1,120 170,445
- - - 355
- - 4,485 17,087
132,278 142,455 5,605 209,766
0
Total Governmental Funds
2008
2007
$3,271,807
$2,687,730
32,078
42,342
203,041
155,820
141,141
188,594
102,199
192,545
-
244,895
63,602
66,189
606,996
532,827
134,987
105,832
6,100
65,375
21,572
17,689
4,583,523
4,299,838
-
-
-
360
-
1,075,616
1,002,763
-
-
-
7,415
-
1,292,465
1,193,451
138
-
95
-
-
632,530
458,241
-
-
-
3,272
-
146,128
138,491
-
-
-
-
-
115,000
-
-
-
-
75,461
-
161,707
411,101
-
-
-
-
-
750,000
125,000
-
-
1,504
122,513
-
134,850
37,688
111,020
-
-
-
-
111,020
-
244,169
-
-
16,898
-
740,657
916,653
355,327
0
1,599
225,919
0
5,159,973
4,283,388
(223,049)
142,455
4,006
(16,153)
0
(576,450)
16,450
-
-
-
-
-
21,289
9,237
6,057,697
-
-
242,303
-
6,300,000
-
5,827
-
-
-
-
5,827
-
-
173,520
290,960
443,250
(1,275,843)
515,083
432,280
-
-
-
(387,113)
1,275,843
-
(76,800)
6,063,524
173,520
290,960
298,440
0
6,842,199
364,717
5,840,475
315,975
294,966
282,287
0
6,265,749
381,167
-
3,243,027
(214,813)
3,830,445
-
11,557,727
11,176,560
$5,840,475
$3,559,002
$80,153
$4,112,732
$0
$17,823,476
$11,557,727
The accompanying notes are an integral part of these financial statements.
31
CITY OF OAK PARK HEIGHTS, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTALFUNDS
For The Year Ended December 31, 2008
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
Adjustment to gain on disposal of capital asset
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 -tern 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
Bonds issued
Bond issuance costs
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:
Amortization of issuance costs
Change in compensated absences payable
Change in accrued interest payable
Change in net assets of governmental activities (Statement 2)
Statement 5
2(108 ?007
$6,265,749 $381,167
(702,019) (450,526)
912,576 1,328,172
(82,835) (685,069)
(394) -
(10,758) 43,264
(21,987) (31,018)
750,000 125,000
(6,300,000) -
111,020
(2,708) -
(7,412) (18,424)
(6,668) 433
$904,564 $692,999
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, 2008
Statement 6
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
Business -Type Activities Enterprise Funds
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
2008 2007
$316,390
$379,170
$172,670 $
-
$868,230
$1,040,675
8,702
10,075
4,027
-
22,804
42,066
88,268
141,103
18,216
-
247,587
266,996
12,590
19,768
3,729
-
36,087
35,981
-
654
-
-
654
28,773
143
211
26
-
380
-
30,516
-
30,516
29,687
426,093
581,497
198,668
0
1,206,258
1,444,178
60,000
-
-
-
60,000
60,000
1,634,579
143,716
-
-
1,778,295
1,706,702
257,875
6,490
-
-
264,365
253,124
3,332,364
4,002,485
-
-
7,334,849
7,334,850
5,284,818
4,152,691
0
0
9,437,509
9,354,676
(1,786,392)
(1,423,321)
-
(3,209,713)
(2,999,547)
3,498,426
2,729,370
0
0
6,227,796
6,355,129
3,498,426
2,729,370
0
0
6,227,796
6,355,129
3,924,519
3,310,867
198,668
0
7,434,054
7,799,307
6,883
4,081
426
11,390
52,343
685
685
-
1,370
590
3,515
-
-
-
3,515
9,840
437
273
44
-
754
1,100
11,520
5,039
470
0
17,029
63,873
13,932
8,705
1,387
24,024
24,742
25,452
13,744
1,857
0
41,053
88,615
Net assets:
Invested in capital assets, net of related debt 3,498,426 2,729,370 - 6,227,796 6,355,129
Unrestricted 400,641 567,753 196,811 1,165,205 1,355,563
Total net assets $3,899,067 $3,297,123 $196,811 $0 $7,393,001 $7,710,692
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, 2008
Business -Type Activities Enterprise Funds
707 Storm 708 -
705 Water 706 Sewer Sewer Utility Sanitation
Utility Fund Utility Fund Fund Utility Fund Totals
2008 2007
Operating revenues:
Customer billings
Penalties
Meter sales
Charges for services
Refunds and reimbursements
Total operating revenues
Operating expenses:
Personal services
Contractual services
Recycling award
MCES charges
Materials and supplies
Administrative and personnel charges
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues:
Earnings on investments
Impairment gain on lift station # 9
Total operating revenues
Income before contributions and transfers
Capital contributions
Transfers:
Transfers from other funds
Transfers to other funds
Total transfers and contributions
Change in net assets
Net assets - January 1, as previously reported
Prior period adjustment
Net assets - January 1, as restated
Net assets - December 31
$462,321
$631,190 $73,089
6,663
12,206 1,168
4,067
- -
2,807
13,413 -
475,858
656,809 74,257
169,904
110,216
20,423
68,032
76,404
33,927
-
356,245
-
21,835
5,766
985
20,560
37,700
3,780
125,834
84,330
-
406,165
670,661
59,115
69,693
(13,852)
15,142
-
550
16,182
19,032
7,608
7,208,744
28,586
7,608
16,182
19,032
85,875
5,180
22,750
($11) $1,166,589 $1,280,112
505
20,542
18,454
-
4,067
8,810
-
16,220
9,022
(46,566)
(515,083)
2,456
494
1,207,418
1,318,854
(46,566)
(432,248)
-
300,543
292,761
-
178,363
305,537
540,970
-
550
176,361
356,245
322,126
7,208,744
28,586
15,939
-
62,040
63,200
-
210,164
182,236
0
1,135,941
1,182,349
494
71,477
136,505
$196,811
258
43,080
60,103
-
14,773
258
43,080
74,876
752 114,557 211,381
58,322 24,513
Statement 7
82,835 685,069
The accompanying notes are an integral part of these financial statements.
34
-
-
76,800
(351,001)
(115,216)
(2,300)
(46,566)
(515,083)
(432,280)
(292,679)
(90,703)
(2,300)
(46,566)
(432,248)
329,589
(206,804)
(85,523)
20,450
(45,814)
(317,691)
540,970
4,105,871
3,382,646
176,361
45,814
7,710,692
7,208,744
-
-
(39,022)
4,105,871
3,382,646
176,361
45,814
7,710,692
7,169,722
$3,899,067
$3,297,123
$196,811
$0
$7,393,001
$7,710,692
The accompanying notes are an integral part of these financial statements.
34
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2008
Business -Tvpe 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
Cash flows from capital and related
financing activities:
Insurance proceeds
Acquisition of capital assets
Net cash flows from capital
and related financing activities
Cash flows from investing activities:
Investment income
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss)
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities:
Depreciation
Disposal of capital asset
Changes in assets and liabilities:
Decrease (increase) in receivables
Decrease (increase) in prepaid expenses
Increase(decrease)in payables
Total adjustments
Net cash provided by operating activities
Noncash investing, capital and financing activities:
Contribution of capital asset
Statement 8
707 Storm 708
705 Water 706 Sewer Sewer Utility Sanitation
Utility Fund Utility Fund Fund Utility Fund Totals
2008 2007
$445,445
$672,766
$72,739
$31,087 $1,222,037
$1,200,578
(114,599)
(492,648)
(38,573)
(15,384) (661,204)
(707,825)
(170,185)
(110,153)
(20,489)
- (300,827)
(293,031)
6,874
13,413
-
- 20,287
20,288
167,535
83,378
13,677
15,703 280,293
220,010
(351,001) (115,216) (2,300) (46,566) (515,083) (432,280)
76,800
(351,001) (115,216) (2,300) (46,566) (515,083) (355,480)
28,771
- (39,776)
0 0 0 0 0 (11,005)
27,729 25,597 8,486 533 62,345 54,837
(155,737) (6,241) 19,863 (30,330) (172,445) (91,638)
472,127 385,411 152,807 30,330 1,040,675 1,132,313
$316,390 $379,170 $172,670 $0 $868,230 $1,040,675
$69,693 ($13,852) $15,142 $494 $71,477 $136,505
125,834 84,330 210,164 182,236
- 64
(23,539)
41,506
(1,518)
30,593
47,042
(97,988)
(829)
-
-
(829)
(2,842)
(4,453)
(27,777)
53
(15,384)
(47,561)
2,035
97,842
97,230
(1,465)
15,209
208,816
83,505
$167,535
$83,378
$13,677
$15,703
$280,293
$220,010
$58,322 $24,513 $ - $ - $82,835 $685,069
The accompanying notes are an integral part of these financial statements.
35
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF FIDUCIARY NET ASSETS
AGENCY FUNDS
December 31, 2008
Statement 9
2008 2007
Assets:
Cash and investments
Due from developers
Accounts receivable
Total assets
Liabilities:
Escrow deposits payable
Accounts payable
Due to developers
Total liabilities
$115,834 $157,915
3,899 8,440
- 3,000
119,733 169,355
$16,500
$31,660
5,312
5,722
97,921
131,973
119,733
169,355
Net assets:
Unrestricted $0 $0
The accompanying notes are an integral part of these financial statements.
36
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Oak Park Heights, Minnesota operates under the State of Minnesota Statutory Plan A form of
government. The governing body consists of a five member City council elected by voters of the City.
The financial statements of the City of Oak Park Heights, Minnesota have been prepared in conformity with
generally accepted accounting principles as applied to governmental units by the Governmental Accounting
Standards Board (GASB). The following is a summary of the significant accounting policies.
A. FINANCIAL REPORTING ENTITY
As required by generally accepted accounting principles, the financial statements of the reporting
entity include those of the City (the primary government) and its component units, entities which the
City is considered to be financially accountable. Blended component units, although legally separate
entities, are, in substance, part of the City's operations and so data from these units are combined with
data of the primary govern vent.
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 serves as HRA
board members. Separate financial statements are not prepared for the HRA.
The EDA of the City of Oak Park Heights, Minnesota is a separate legal entity. The EDA board
members are substantially the same as the City council in that four of the five board members are
council members and the fifth board member is the City finance director. Separate financial
statements are not prepared by the EDA.
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
The government -wide financial statements (i.e., the statement of net assets and the statement of
changes in net assets) report information on all of the nonfiduciary activities of the primary
government and its component units. For the most part, the effect of interf nd activity has been
removed from these statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business -type activities, which rely to a
significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
business -type activity is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or business -type activity. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or business -type activity and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or business -type
activity. Taxes and other items not included among program revenues are reported instead as general
revenues.
37
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government -wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns
in the fund financial statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government -wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met. The City's only fiduciary funds are agency funds. Agency
funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of
operations.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as
they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the government considers all revenues, except reimbursement grants, to be available
if they are collected within 60 days of the end of the current fiscal period. Reimbursement grants are
considered available if they are collected within one year of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences and
claims and judgments, are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have
been recognized as revenues of the current fiscal period. Only the portion of special assessments
receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of
the current period. All other revenue items are considered to be measurable and available only when
cash is received by the government.
The City reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another fund.
The G. 0. Improvement Bonds of 1998 Debt Service Fund - $1,990,000 bond issue to fund water,
sewer, storm sewer improvements in the Fern 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.
38
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
The Budgeted Projects and Equipment Revolving Capital Project Fund — is used to account for
monies set aside for various capital improvements.
The City Hall Improvement Capital Project Fund — is used to account for the costs related to the
construction of the new City hall.
The Capital Revolving Capital Project Fund accounts for use of residual debt service fund
monies.
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 government reports the following major proprietary funds
The Water Utility Fund accounts for assets, liabilities, revenues and expenditures for water utility
operations.
The Sewer Utility Fund accounts for assets, liabilities, revenues and expenditures for sewer utility
operations.
The Storm Sewer Utility Fund accounts for assets, liabilities, revenues and expenditures for storm
sewer utility operations.
The Sanitation Fund accounts for assets, liabilities, revenues and expenditures for garbage and
recycling operations.
Additionally, the government reports the following fluid 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.
dej
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues
of the enterprise funds are charges to customers for sales and services. Operating expenses for
enterprise funds include the cost of sales and services, administrative expenses, and depreciation on
capital assets. All revenues and expenses not meeting this definition are reported as nonoperating
revenues and expenses.
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.
U � 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.
E. LEGAL COMPLIANCE m BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Administrator submits to the City Council a proposed operating budget for the fiscal
year commencing the following January 1. The operating budget includes proposed
expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmental basis and can
be expended by each department based upon detailed budget estimates for individual
expenditure accounts.
4. The department heads are authorized to transfer appropriations under $500 within any
department budget. Additional interdepartmental or interfund appropriations and deletions
40
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
are or may be authorized by the City Council with fund (contingency) reserves or additional
revenues.
5. Formal budgetary integration is employed as a management control device during the year for
the General Fund.
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies
for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to
determine and calculate user charges. These debt service and budget amounts represent
general obligation bond indenture provisions and net income for operation and capital
maintenance and are not reflected in the financial statements.
7. A capital improvement program is reviewed annually by the City Council for the Capital
Project Funds. However, appropriations for major projects are not adopted until the actual
bid award of the improvement. The appropriations are not reflected in the financial
statements.
8. Expenditures may not legally exceed budgeted appropriations at the total fund level.
Monitoring of budgets is maintained at the expenditure category level (i.e., personal services;
material and supplies; contractual services; capital outlay) within each department. All
amounts over budget have been approved by the City council through the disbursement
approval process.
9. The City Council may authorize transfer of budgeted amounts between City funds.
Fe CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in
authorized investments. Earnings from investments are allocated to individual finds on the basis of
the fund's equity in the cash and investment pool.
Investments are stated at fair value, based upon quoted market prices. Investment income is accrued at
the balance sheet date.
For purposes of the statement of cash flows the Enterprise Funds consider all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents. All of the cash and
investments allocated to the Enterprise Funds have original maturities of 90 days or less. Therefore
the entire balance in the fund is considered cash equivalents.
G. RECEIVABLES AND PAYABLES
Property taxes and special assessments (see notes 1H and 1) 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.
EM
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
He PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December
(levy /assessment date) of each year for collection in the following year. The County is responsible for
billing and collecting all property taxes for itself, the City, the local School District and other taxing
authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that
date. Real property taxes are payable (by property owners) on May 15 and October 15 of each
calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each
year. These taxes are collected by the County and remitted to the City on or before July 7 and
December 2 of the same year. Delinquent collections for November and December are received the
following January. The City has no ability to enforce payment of property taxes by property owners.
The County possesses this authority.
Government -Wide Financial Statements
The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible
property taxes are not material and have not been reported.
Governmental Fund Financial Statements
The City recognizes property tax revenue when it becomes both measurable and available to finance
expenditures of the current period. In practice, current and delinquent taxes and State credits received
by the City in July, December and January are recognized as revenue for the current year. Taxes
collected by the County by December 31 (remitted to the City the following January) and taxes and
credits not received at year end are classified as delinquent and due from County taxes receivable. The
portion of delinquent taxes not collected by the City in January is frilly offset by deferred revenue
because they are not available to finance current expenditures.
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 fill 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 Lidless 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, 2008
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.
J. INVENTORIES
The original cost of materials and supplies has been recorded as expenditures at the time of purchase.
The City does not maintain material amounts of inventories of goods and supplies.
K. PREPAID ITEMS
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government -wide and fund financial statements.
L. CAPITAL. ASSETS
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business -type activities
columns in the government -wide financial statements. Capital assets are defined by the government as
assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated
useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost
if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the
date of donation.
In the case of the initial capitalization of general infrastructure assets (i.e., those reported by
governmental activities) the government chose to include all such items regardless of their acquisition
date. These assets are reported at historical cost.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business -type activities is included as part of
the capitalized value of the assets constructed. For the year ended December 31, 2008, no interest was
capitalized in connection with construction in progress.
43
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Property, plant and equipment of the primary government, as well as the component units, are
depreciated using the straight line method over the following estimated useful lives:
Buildings and structures
50 years
Machinery and equipment
3 — 20 years
Distribution and collection systems
50 years
Streets
25 years
Storm sewers
50 years
Pathways
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 fiends only if they have matured, for example,
as a result of employee resignations and retirements. In accordance with the provisions of Statement
of Government Accounting Standards No. 16, Accounting for Compensated Absences, no liability is
recorded for nonvesting accumulating rights to receive sick pay benefits.
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.
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.
44
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
P. INTERFUND TRANSACTIONS
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures /expenses initially made from it
that are properly applicable to another fund, are recorded as expenditures /expenses in the reimbursing
fund and as reductions of expenditures /expenses in the fund that is reimbursed. Interfund loans are
reported as an interfund loan receivable or payable which offsets the movement of cash between
funds. All other interfund transactions are reported as transfers.
Q. USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted accounting principles
(GAAP) requires management to make estimates that affect amounts reported in the financial
statements during the reporting period. Actual results could differ from such estimates.
Note 2 DEPOSITS AND INVESTMENTS
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks
authorized by the City Council, all of which are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral.
The market value of collateral pledged must equal 110% of the deposits not covered by insurance or
bonds.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City
Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral
includes the following:
a) United States government treasury bills, treasury notes, treasury bonds;
b) Issues of United States government agencies and instrumentalities as quoted by a recognized
industry quotation service available to the government entity;
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, 2008
Investors Service, Inc. or Standard & Poor's Corporation; and
f) Time deposits that are fully insured by any Federal agency.
At December 31, 2008 the carrying amount of the City's deposits with financial institutions was
$11,930,767, 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.
46
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
As of December 31, 2008 the City had the following investments and maturities:
Investment Type
Federal National Mortgage Assn. Notes
Federal Home Loan Mortgage Corp. Notes
Federal Home Loan Bank Notes (2)
Broker - dealer money market accounts
External investment pool - 4M Fund
Total
( ' ) These notes have call dates that occur
in less than one year
(2) These notes all have call dates that occur
in less than one year.
Following is a reconciliation of the City's cash and investment balances as of December 31, 2008:
Government -wide statement of net assets:
Cash and investments $18,722,902
Fiduciary funds statement of net assets 115,834
$18,838,736
C. INVESTMENT RISKS
The City's investment policy is to follow Minnesota State Statutes as described above which reduces
the City's exposure to credit, custodial credit, and interest rate risks. Specific risk information for the
City is as follows:
Interest rate risk — The City's investment policy requires the City to diversify its investment portfolio
to eliminate the risk of loss resulting from over concentration of assets in a specific maturity. The
policy also states the City's investment portfolio will remain sufficiently liquid to enable the City to
meet all operating requirements which might be reasonably anticipated.
Credit risk — 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.
Uyl
Investment Maturities (in Years)
Fair
Less
Value
Than 1
1 -5
6 -10
$6,025,242
$6,025,242
$ -
$ -
197,999
-
197,999
-
200,000
-
200,000
-
96,585
96,585
-
-
388,043
388,043
-
-
$6,907,869
$6,509,870
$397,999
$0
Total investments
$6,907,869
Deposits
11,930,767
Petty cash
100
Total cash and investments
$18,838,736
Following is a reconciliation of the City's cash and investment balances as of December 31, 2008:
Government -wide statement of net assets:
Cash and investments $18,722,902
Fiduciary funds statement of net assets 115,834
$18,838,736
C. INVESTMENT RISKS
The City's investment policy is to follow Minnesota State Statutes as described above which reduces
the City's exposure to credit, custodial credit, and interest rate risks. Specific risk information for the
City is as follows:
Interest rate risk — The City's investment policy requires the City to diversify its investment portfolio
to eliminate the risk of loss resulting from over concentration of assets in a specific maturity. The
policy also states the City's investment portfolio will remain sufficiently liquid to enable the City to
meet all operating requirements which might be reasonably anticipated.
Credit risk — 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.
Uyl
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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 National Mortgage Association.
This investment is 31 % of the City's total cash and investments.
Custodial credit risk — For investments in securities, custodial credit risk is the risk that in the event of
a failure of the counterparty, the City will not be able to recover the value of its investment securities
that are in the possession of an outside party. As of December 31, 2008, $388,043 of the City's
investments was invested in the 4M Fund. Investments in the 4M Fund are not evidenced by securities
that exist in physical or book entry form, and therefore are not subject to custodial credit risk
disclosures. The City's $6,423,241 investments in Federal Agency securities, are held by the broker -
dealer, of which $897,999 is insured through SIPC.
Mote 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2008 are as
follows:
Major Funds
Capital
Revolving
General Fund Total
Delinquent property taxes $54,740 $ - $54,740
Deferred special assessments - 109,933 109,933
Total $54,740 $109,933 $164,673
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:
Unavailable Unearned
Delinquent property taxes receivable (General Fund)
Special assessments receivable (Capital Revolving Fund)
Total deferred /unearned revenue for governmental funds
$71,337
131,920
$203,257 $0
48
CITE' OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 4 CAPITAL. ASSETS
Capital asset activity for the year ended December 31, 2008 was as follows:
Governmental activities:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings and structures
Other improvements
Machinery and equipment
Furniture and fixtures
Infrastructure
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings and structures
Other improvements
Machinery and equipment
Furniture and fixtures
Infrastructure
Total accumulated depreciation
Total capital assets being depreciated - net
Governmental activities capital assets - net
Beginning
Ending
Balance
Increases
Decreases
Balance
$2,188,931
$ -
$ -
$2,188,931
176,443
771,198
(223,882)
723,759
2,365,374
771,198
(223,882)
2,912,690
1,584,031
-
1,584,031
886,154
-
886,154
492,597
88,824
(69,440)
511,981
269,306
9,558
278,864
12,188,151
184,043
12,372,194
15,420,239
282,425
(69,440)
15,633,224
447,535
209,838
-
657,373
149,686
12,250
-
161,936
278,037
65,705
(69,046)
274,696
125,610
21,302
146,912
4,235,674
392,924
4,628,598
5,236,542
702,019
(69,046)
5,869,515
10,183,697
(419,594)
(394)
9,763,709
$12,549,071
$351,604
($224,276)
$12,676,399
49
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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
1,706,702
71,593
-
1,778,295
253,124
11,241
-
264,365
7,334,849
-
-
7,334,849
9,294,675
82,834
0
9,377,509
552,554
49,497
-
602,051
133,930
12,577
-
146,507
2,313,065
148,090
-
2,461,155
2,999,549
210,164
0
3,209,713
6,295,126
(127,330)
0
6,167,796
$6,355,126
($127,330)
$0
$6,227,796
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
$215,688
57,331
368,216
60,784
$702,019
$125,834
84,330
$210,164
50
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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, 2008, the long -term debt of the financial reporting entity consisted of the following:
Governmental Activities:
Improvement bonds:
G.O. Capital Improvement Bonds, Series 2008A
Compensated absences payable
Total governmental activities
Business -Type Activities:
Compensated absences payable
Total City indebtedness
Final Authorized
Issue Maturity Interest And Outstanding
Date Date Rate Issued 12/31/08
06/15/08 12/15/28 2.5-4.4
$6,300,000 $6,300,000
233,285
6,533,285
24,778
$6,558,063
51
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Annual debt service requirements to maturity are as follows:
Year
G.O. Improvement Bonds
Ending
Governmental Activities
December 31,
Principal
Interest
2009
$135,000
$245,025
2010
150,000
241,650
2011
155,000
237,525
2012
170,000
233,030
2013
185,000
227,845
2014
200,000
222,018
2015
215,000
215,418
2016
230,000
208,000
2017
250,000
199,720
2018
270,000
190,470
2019
290,000
180,345
2020
315,000
169,325
2021
340,000
156,725
2022
370,000
143,125
2023
405,000
128,325
2024
440,000
111,922
2025
485,000
93,882
2026
525,000
73,512
2027
560,000
51,200
2028
610,000
26,840
Total
$6,300,000
$3,355,902
It is not practicable to determine the specific year for payment of accrued compensated absences.
52
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Change in Long -Term Liabilities
Long -term liability activity for the year ended December 31, 2008, was as follows:
For the governmental activities, compensated absences are generally liquidated by the General Fund. All
long -term bonded indebtedness outstanding at December 31, 2008 is backed by the full faith and credit of
the City, including improvement bond issues. Delinquent assessments receivable at December 31, 2008
were $5,691.
Revenues Pledged
Balance
Revenue Pledged
Remaining
Balance
Due Within
Percent of
01/01/08
Additions
Reductions
12/31/08
One Year
Governmental Activities:
Total
Tenn of
Principal
and Interest
Revenue
Bonded debt:
Proceeds
Type
Debt Service
Pledge
and Interest
Improvement bonds
$750,000
$6,300,000
$750,000
$6,300,000
$135,000
Compensated absences
225,873
79,916
72,504
233,285
7,092
Total governmental activities
$975,873
$6,379,916
$822,504
$6,533,285
$142,092
Business -Type Activities:
Compensated absences
$25,842
$11,550
$12,614
$24,778
$754
Total business -type activities
$25,842
$11,550
$12,614
$24,778
$754
For the governmental activities, compensated absences are generally liquidated by the General Fund. All
long -term bonded indebtedness outstanding at December 31, 2008 is backed by the full faith and credit of
the City, including improvement bond issues. Delinquent assessments receivable at December 31, 2008
were $5,691.
Revenues Pledged
Note 6 PENSION PLANS
A. PERA DEFINED BENEFIT PLAN
PLAN DESCRIPTION
All full -time and certain part -time employees of the City are covered by defined benefit plans administered
by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public
Employees Retirement Fund (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 roust participate in the
Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by
statute are covered by the PEPFF.
53
Revenue Pledged
Remaining
Current Year
Percent of
Principal
Pledged
Use of
Total
Tenn of
Principal
and Interest
Revenue
Bond Issue
Proceeds
Type
Debt Service
Pledge
and Interest
Paid
Received
2008A
Capital Improvements
Property taxes
100%
2009 - 2028
1 $9,655,902
$122,513
$
Note 6 PENSION PLANS
A. PERA DEFINED BENEFIT PLAN
PLAN DESCRIPTION
All full -time and certain part -time employees of the City are covered by defined benefit plans administered
by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public
Employees Retirement Fund (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 roust participate in the
Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by
statute are covered by the PEPFF.
53
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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.
Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The
retiring member receives the higher of a step -rate benefit accrual formula (Method 1) or a level accrual
formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent
of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The
annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the
first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7
percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for
each year of service. For PEPFF members, the annuity accrual rate is 3.0 percent for each year of
service. The annuity accrual rate is 1.9 percent for each year of service for PECF members. For all
PEPFF members, PECF members, and PERF members hired prior to July 1, 1989 whose annuity is
calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal
retirement age is 55 for PEPFF and .PECF members and 65 for Basic and Coordinated members hired
prior to July 1, 1989. Normal retirment age is the age for unreduced Social Security benefits capped at
66 for Coordinated members hired on or after July 1, 1989. A reduced retirement annuity is also
available to eligible members seeking early retirement.
There are different types of annuities available to members upon retirement. A single -life annuity is a
lifetime annuity that ceases upon the death of the retiree —no survivor annuity is payable. There are
also various types of joint and survivor annuity options available which will be payable over joint
lives.
Members may also leave their contributions in the fiord upon termination of public service in order to
qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to
members who leave public service, but before retirement benefits begin.
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 PE.R.F 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 6.0 %, respectively, of their annual
54
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
covered salary in 2008. PEPFF members were required to contribute 8.6% of their annual covered
salary in 2008. That rate will increase to 9.4% in 2009. The City is required to contribute the
following percentages of annual covered payroll: 11.78% for Basic Plan PERF members, 6.5% for
Coordinated Plan PERF members, and 12.9% for PEPFF members. Employer contribution rates for
the Coordinated Plan and PEPFF will increase to 6.75% and 14.1% respectively, effective January 1,
2009. The City's contributions to the Public Employees Retirement Fund for the years ending
December 31, 2008, 2007 and 2006 were $45,539, $41,234 and $38,951, respectively. The City's
contributions to the Public Employees Police and Fire Fund for the years ending December 31, 2008,
2007 and 2006 were $91,155, $77,521 and $70,569, respectively. The City's contributions were equal
to the contractually required contributions for each year as set by state statute.
B. DEFINED CONTRIBUTION PLAN
The City administrator does not participate in PERA, but is covered by a defined contribution plan
administered by the ICMA Retirement Corporation. The Plan is a tax qualified plan under Section 457
of the Internal Revenue Code and all contributions by or on behalf of the employee are tax deferred
until time of withdrawal.
The City is required to contribute 10% of the annual base salary. Plan provisions and contribution
requirements are established and may be amended by the City council. Employer contributions were
$10,107 for the year ended December 31, 2008.
Note 7 INTERFUND TRANSFERS
During 2008, the City made routine interfund transfers to accumulate resources to be used for improvements or
to close funds.
55
Transfer In
Major Business -
Major Funds
Type Fund
G.O.
Budgeted
Improvement
Renewal and
Projects and
Nonmajor
Bonds of 1998
Replacement
Water Tower
Equipment
Governmental
Water Utility
General Fetid Fund
Fund
Rehabilitation
Revolving
Funds
Fund
Total
Transfer out:
Governmental Activities:
General Fund
S - S -
S -
S -
S470,000
5397,000
S -
S867,000
Capital Revolving Fund
- 21,730
-
-
-
-
-
21,730
NonmajorGovernmentalFunds
- 275,000
-
112,113
-
-
-
387,113
Business -Type Activities:
Water Utility Fund
- -
92,104
178,847
33,800
46,250
-
351,001
Sewer Utility Fund
- -
81,416
-
33,800
-
-
115,216
Storm Sewer Utility Fund
- -
-
-
2,300
-
-
2,300
Sanitation Utility Fund
46,566
-
-
-
-
46,566
Total transfers
S46,566 5296,730
5173,520
5290,960
5539,900
S443,250
SO
51,790,926
During 2008, the City made routine interfund transfers to accumulate resources to be used for improvements or
to close funds.
55
CITY OF OAK PARK HEIGHTS, MINNESO'T'A
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 8 CONTINGENCIES
A. LITIGATION
The City attorney has indicated there are no existing or pending lawsuits, claims or other actions in
which the City is a defendant.
IMm 01011] 01 CAR W.10 l/�l Y D7 ITil►i17.`7
The City receives financial assistance from federal and state governmental agencies in the form of
grants. The disbursement of funds received under these programs generally requires compliance with
the terms and conditions specified in the grant agreements and are subject to audit by the grantor
agencies. Any disallowed claims resulting from such audits could become a liability of the applicable
fund. However, in the opinion of management, any such disallowed claims will not have a material
effect on any of the financial statements of the individual fund types included herein or on the overall
financial position of the City at December 31, 2008.
IU ' Us ►a X" BITUTWOVI
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.
56
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 10 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY
At December 31, 2008 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, 2008 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,
2008
Governmental Funds:
Major Funds:
General Fund:
Designated for cash flow
Designated for contingent employee benefit
Designated for general contingency
City Hall Improvement Fund:
Designated for capital improvements
Renewal and Replacement Fund:
Designated for capital improvements
Water Tower Rehabilitation Fund:
Designated for capital improvements
Capital Revolving Find:
Designated for capital improvements
Budgeted Projects and Equipment Revolving Fund:
Designated for capital improvements
Nonmajor Funds:
Designated for special revenue programs
Designated for debt service
Designated for capital improvements
Totals
$1,541,000
188,000
542,000
5,840,475
3,559,002
80,153
820,496
794,248
102,181
127,247
3,883,304
$17,478,106
57
CITY OF OAK PART{ HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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 2008.
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, 2008, there were six series of Industrial Revenue Bonds outstanding. The principal
amount payable at December 31, 2008 could not be determined; however, their original issue amounts totaled
$54,985,000.
Note 13 OPERATING LEASES
The City leases space in and above its water tower. The space is used for antennas and other equipment necessary to
provide radio communications. Lease terms are as follows:
2008
Lease
Location Lessee Amount
Annual Lease
Adjustment Factor*
Expiration
Renewal
Date
Options
9/20/2009
3 5 -year terms
58th and Norrell Sprint PCS $26,364 Greater of CPI or 5%
*Amounts for future lease receipts are unavailable because they are based on the Consumer Price Index
58
FA 101 IN
59
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 5
For The Year Ended December 31, 2008
With Comparative Actual Amounts For The Year Ended December 31, 2007
Z
Variance with
Final Budget -
2008 Actual
Positive
2007 Actual
Budgeted Amounts
Amounts
(Negative)
Amounts
Original
Final
Revenues:
Property taxes
$3,286,230
$3,286,230
$3,251,500
($34,730)
$2,666,871
Payment in lieu of taxes
20,000
20,000
20,307
307
20,859
Total property taxes
3,306,230
3,306,230
3,271,807
(34,423)
2,687,730
Special assessments
-
-
499
499
-
Intergovernmental:
Federal:
Safe and sober
8,000
8,000
9,138
1,138
4,978
Operation nightcap
-
-
944
944
840
Underage compliance checks
960
960
-
(960)
960
State:
Market value homestead credit
81,250
81,250
40,625
(40,625)
81,066
Police aid
62,000
62,000
64,008
2,008
70,143
PERA rate increase aid
2,040
2,040
2,040
-
2,040
Local government aid
28,056
28,056
14,028
(14,028)
27,984
Other:
Public health grant
10,000
10,000
10,000
-
-
Gravel tax allocation
-
-
358
358
583
Total intergovermnental
192,306
192,306
141,141
(51,165)
188,594
Licenses and permits
184,290
184,290
203,041
18,751
155,820
Charges for services:
General government
10,700
10,700
18,280
7,580
69,357
Administrative - Enterprise Fund
62,040
62,040
62,040
-
63,200
Total charges for services
72,740
72,740
80,320
7,580
132,557
Fines and forfeits
70,500
70,500
63,602
(6,898)
66,189
Investment income
81,000
81,000
90,004
9,004
93,957
Refunds and reimbursements
79,000
79,000
134,632
55,632
91,047
Donations and contributions
-
-
-
-
600
Total revenues
3,986,066
3,986,066
3,985,046
(1,020)
3,416,494
Expenditures:
General government:
Mayor and city council:
Current:
Personal services
50,910
50,910
55,623
(4,713)
48,513
Materials and supplies
800
800
460
340
350
Other services and charges
47,800
47,800
26,496
21,304
24,521
Total mayor and city council
99,510
99,510
82,579
16,931
73,384
City administration:
Current:
Personal services
179,200
179,200
178,649
551
158,822
Materials and supplies
3,800
3,800
1,626
2,174
2,346
Other services and charges
51,490
51,490
54,752
(3,262)
44,642
Total City administration
234,490
23
235,027
(537)
205,810
Z
CITY OF OAK PARK HEIGHTS, MINNESOTA
Expenditures: (continued)
General government: (continued)
Legal:
Current:
Personal services
General management and building:
Current:
Materials and supplies
Other services and charges
Total general management and building
Elections:
Current:
Personal services
Materials and supplies
Other services and charges
Total elections
Finance:
Current:
Personal services
Materials and supplies
Other services and charges
Total finance
Computer system:
Current:
Materials and supplies
Other services and charges
Total computer system
Audit:
Current:
Personal services
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
Variance with
Final Budget -
2008 Actual Positive 2007 Actual
Budgeted Amounts Amounts (Negative) Amounts
Original Final
$30,000
$30,000
$17,070
$12,930
$26,093
8,800
8,800
8,028
772
9,319
81,900
81,900
72,331
9,569
68,508
90,700
90,700
80,359
10,341
77,827
9,500
9,500
6,406
3,094
2,683
1,500
1,500
669
831
266
940
940
1,005
(65)
622
11,940
11,940
8,080
3,860
3,571
193,150
193,150
191,004
2,146
178,612
4,350
4,350
3,783
567
2,193
30,535
30,535
29,866
669
25,624
228,035
228,035
224,653
3,382
206,429
2,000
2,000
1,534
466
2,507
21,000
21,000
15,998
5,002
13,119
23,000
23,000
17,532
5,468
15,626
21,450
21,450
16,419
5,031
22,238
332,710
332,710
335,214
(2,504)
309,540
22,000
22,000
20,503
1,497
19,032
30,000
30,000
22,280
7,720
22,143
150
150
22
128
131
1,500
1,500
1,175
325
1,225
31,650
31,650
23,477
8,173
23,499
61
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 5
For The Year Ended December 31, 2008
With Comparative Actual Amounts For The Year Ended December 31, 2007
62
Variance with
Final Budget -
2008 Actual
Positive
2007 Actual
Budgeted Amounts
Amounts
(Negative)
Amounts
Original
Final
Expenditures: (continued)
General government: (continued)
Engineering:
Current:
Other services and charges
$16,800
$16,800
$11,008
$5,792
$19,192
General contingency:
Current:
Other services and charges
10,000
10,000
3,335
6,665
-
Total general government
1,152,285
1,152,285
1,075,256
77,029
1,002,241
Public safety:
Police department:
Current:
Personal services
875,750
875,750
830,599
45,151
761,882
Materials and supplies
52,900
52,900
43,123
9,777
43,002
Other services and charges
154,850
154,850
152,448
2,402
135,091
Total police department
1,083,500
1,083,500
1,026,170
57,330
939,975
Building inspections:
Current:
Personal services
101,200
101,200
99,969
1,231
97,604
Materials and supplies
3,550
3,550
2,247
1,303
3,061
Other services and charges
22,600
22,600
19,171
3,429
16,156
Total building inspections
127,350
127,350
121,387
5,963
116,821
Fire protection:
Current:
Materials and supplies
2,000
2,000
-
2,000
2,000
Other services and charges
137,555
137,555
134,995
2,560
125,539
Total fire protection
139,555
139,555
134,995
4,560
127,539
Civil defense:
Current:
Other services and charges
5,100
5,100
1,303
3,797
980
Animal control:
Current:
Materials and supplies
150
150
182
(32)
50
Other services and charges
1,500
1,500
1,013
487
990
Total animal control
1,650
1,650
1,195
455
1,040
Total public safety
1,357,155
1,357,155
1,285,050
72,105
1,186,355
62
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 5
For The Year Ended December 31, 2008
With Comparative Actual Amounts For The Year Ended December 31, 2007
63
Variance with
Final Budget -
2008 Actual
Positive
2007 Actual
Budgeted Amounts
Amounts
(Negative)
Amounts
Original
Final
Expenditures: (continued)
Public works:
Street maintenance:
Current:
Personal services
$21,410
$21,410
$18,758
$2,652
$17,945
Materials and supplies
13,625
13,625
10,690
2,935
4,230
Other services and charges
26,210
26,210
23,941
2,269
26,885
Total street maintenance
61,245
61,245
53,389
7,856
49,060
Snow removal:
Current:
Materials and supplies
500
500
568
(68)
1,004
Other services and charges
97,000
97,000
130,729
(33,729)
105,613
Total snow removal
97,500
97,500
131,297
(33,797)
106,617
Sanitation:
Current:
Materials and supplies
100
100
1,649
(1,549)
-
Other services and charges
162,200
162,200
174,566
(12,366)
-
Total sanitation
162,300
162,300
176,215
(13,915)
0
Street lighting:
Current:
Other services and charges
60,800
60,800
59,653
1,147
14,749
Arborist:
Current:
Personal services
18,000
18,000
15,945
2,055
11,341
Materials and supplies
100
100
138
(38)
-
Other services and charges
255
255
129
126
230
Total arborist
18,355
18,355
16,212
2,143
11,571
Tree removal and planting:
Current:
Other services and charges
29,000
29,000
29,423
(423)
10,793
Total public works
429,200
429,200
466,189
(36,989)
192,790
Parks and recreation:
Parks, playgrounds and rinks:
Current:
Personal services
75,175
75,175
62,285
12,890
57,737
Materials and supplies
15,535
15,535
6,939
8,596
15,707
Other services and charges
88,722
88,722
73,632
15,090
63,983
Capital outlay
800
800
800
-
-
Total parks and recreation
180,232
180,232
143,656
36,576
137,427
63
CITY OF OAK PARK HEIGHTS, MINNESOTA
Expenditures: (continued)
Other:
Abatement of property taxes
Total expenditures
Revenues over expenditures
Other financing sources (uses):
Sale of property
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balance - January 1
Fund balance - December 31
Original Final
$ -
$ -
$115,000
($115,000)
$ -
3,118,872
3,118,872
3,085,151
33,721
2,518,813
867,194
867,194
899,895
32,701
897,681
-
-
21,289
21,289
9,237
-
-
46,566
46,566
-
(867,000)
(867,000)
(867,000)
-
(693,800)
(867,000)
(867,000)
(799,145)
67,855
(684,563)
$1
$194
100,750
$100,556
213,118
2,515,620
$2,616,370
2,302,502
$2,515,620
64
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2008
Note A BUDGETS
The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted
in the United States of America. The legal level of budgetary control is at the department level for the General
Fund.
65
- This gage intentionally left blank -
66
67
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68
ra.
Assets
Cash and investments
Interest receivable
Accounts receivable - net
Due from developers
Total assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Contracts payable
Due to developers
Total liabilities
Fund balance:
Reserved
Unreserved:
Designated
Total fund balance
Total liabilities and fund balance
$6,015 $ - $ - $6,015 $844
- - - - 2,390
- - 50,000 50,000 20,114
6,015 0 50,000 56,015 23,348
127,247 - 127,247 -
102,181
- 3,883,304
3,985,485
Totals
102,181
127,247 3,883,304
4,112,732
Nonmaj or
Special
Debt
Capital
Governmental Funds
Revenue
Service
Project
2008 2007
$105,818
$124,740
$3,851,328
$4,081,886 $3,714,338
2,378
2,507
81,976
86,861 127,311
-
-
-
- 5,717
-
-
-
- 6,427
$108,196
$127,247
$3,933,304
$4,168,747 $3,853,793
$6,015 $ - $ - $6,015 $844
- - - - 2,390
- - 50,000 50,000 20,114
6,015 0 50,000 56,015 23,348
127,247 - 127,247 -
102,181
- 3,883,304
3,985,485
3,830,445
102,181
127,247 3,883,304
4,112,732
3,830,445
$ 108,196
$ 127,247 $3,933,304
$4,168,747
$3,853,793
70
Totals
Revenues:
Charges for services
Direct charges to developers
Investment income
Refunds and reimbursements
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Parks and recreation
Public works
Capital outlay
Debt service:
Interest
Construction costs
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Bonds issued
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Special Debt Capital Nonmajor Governmental Funds
Revenue Service Project 2008 2007
$21,879
$21,879
$59,988
- - -
-
244,895
4,491 7,457 158,497
170,445
181,899
355 - -
355
6,185
17,087 - -
17,087
17,689
21,933 7,457 180,376
209,766
510,656
360
-
-
360
522
7,415
-
-
7,415
7,096
-
-
3,272
3,272
-
-
-
-
-
1,064
12,937
-
62,524
75,461
303,974
-
122,513
-
122,513
-
-
-
16,898
16,898
488,302
20,712
122,513
82,694
225,919
800,958
1,221
(115,056)
97,682
(16,153)
(290,302)
-
242,303
-
242,303
-
-
-
443,250
443,250
545,244
-
-
(387,113)
(387,113)
(99,234)
0
242,303
56,137
298,440
446,010
1,221
127,247
153,819
282,287
155,708
Fund balance - January 1
100,960
- 3,729,485
3,830,445
3,674,737
Fund balance - December 31
$102,181
$127,247 $3,883,304
$4,112,732
$3,830,445
Assets
202 Forefeiture
and Seizure
Cash and investments $47,162 $58,656 $105,818 $92,611
Accrued interest receivable 1,036 1,342 2,378 3,193
Accounts receivable - - - 5,717
Total assets $48,198 $59,998 $108,196 $101,521
Liabilities and Fund Balance
Liabilities:
Accounts payable
Fund balance:
Unreserved:
Designated for special revenue programs
Total liabilities and fund balance
$6,015
204 Economic
Development
Totals Nonmajor Special Revenue
Funds
20 2007
$6,015
$561
42,183
59,998
102,181
100,960
$48,198
$59,998
$108,196
$101,521
WO
202 Forefeiture
and Seizure
Revenues:
Investment income
Refunds and reimbursements
Confiscated property
Total revenues
Expenditures:
General government:
Current:
Contractual services
Public safety:
Current:
Materials and supplies
Contractual services
Capital outlay
Total expenditures
Revenues over (under) expenditures
204 Economic
Development
Totals Nonmajor Special Revenue
Funds
2008 2007
$1,957
$2,534 $4,491 $4,563
355
- 355 -
17,087
- 17,087 17,689
19,399
2,534 21,933 22,252
(953)
360
7,165
250
12,937
20,712
1,221
Fund balance - January 1
43,136
57,824
100,960
86,326
Fund balance - December 31
$42,183
$59,998
$102,181
$100,960
73
Assets
Cash and investments
Accrued interest receivable
Total assets
Liabilities and Fund Balance
Liabilities
Fund balance:
Reserved for debt service
Total liabilities and fund balance
526 G.O. Capital
Improvement
Bonds of 2008 Total Nonmajor Debt Service Fund
2008 2007
$124,740
$124,740
($822)
2,507
2,507
822
$127,247
$127,247
$0
127,247 127,247 -
$127,247 $127,247 $0
74
526 G.O.
Capital
Improvement Total Nonmajor Debt Service
Bonds of 2008 Funds
2008 200
Revenues:
Investment income
Expenditures:
Debt service:
Interest and other
Revenues over (under) expenditures
$7,457 $7,457 $1,175
122,513 122,513 -
(115,056) (115,056) 1,175
Other financing sources (uses):
Bonds issued
Transfers out
Total other financing sources (uses)
Net change in fiend balance
Fund balance - January 1
Fund balance - December 31
242,303 242,303 -
- - (48,490)
242,303 242,303 (48,490)
127,247 127,247 (47,315)
- - 47,315
$127,247 $127,247 $0
75
Assets
Cash and investments
Interest receivable
Due from developers
Total assets
712 Storm Sewer
Renewal /
405 Park 565 Street 406 Brekke Park 711 Water Tower Replacement
Development Reconstruction Memorial Rental Fund
$474,725
$1,293,506
$375 $ -
$77,471
11,128
24,335
9 -
529
$485,853
$1,317,841
$384 $0
$78,000
Liabilities and Fund Balance
Liabilities:
Accounts payable
Contracts payable
Due to developers
Total liabilities 0 0 0 0 0
Fund balance:
Unreserved:
Designated for capital improvement 485,853 1,317,841 384
Total fund balance 485,853 1,317,841 384
Total liabilities and fund balance $485,853 $1,317,841 $384
_ 78,000
0 78,000
$0 $78,000
76
Statement 17
$283
2,390
- - 50,000 - - 50,000 20,114
0 0 0 50,000 0 0 50,000 22,787
356,564
699,852
864,247 -
732 Novak
48,295
3,883,304
3,729,485
356,564
771 Sanitary
864,247 0
773 AAE -
Avenue Street
3,883,304
3,729,485
Sewer
772 Water
Storm Sewer
and Utility
735 Well
736 Sewer
Totals Nomnajor Capital
Project
Connection
Connection
Connection
Improvements
Rehabilitation
Rehabilitation
Funds
2008
2007
$348,013
$684,052
$844,610
$50,000
$31,788
$46,788
$3,851,328
$3,622,549
8,551
15,800
19,637
-
480
1,507
81,976
123,296
_
_
_
_
-
-
-
6,427
$356,564
$699,852
$864,247
$50,000
$32,268
$48,295
$3,933,304
$3,752,272
$283
2,390
- - 50,000 - - 50,000 20,114
0 0 0 50,000 0 0 50,000 22,787
356,564
699,852
864,247 -
32,268
48,295
3,883,304
3,729,485
356,564
699,852
864,247 0
32,268
48,295
3,883,304
3,729,485
$356,564
$699,852
$864,247 $50,000
$32,268
$48,295
$3,933,304
$3,752,272
77
712 Storm Sewer
406 Brekke Renewal /
405 Park 565 Street Park 711 Water Replacement
Development Reconstruction Memorial Tower Rental Fund
Revenues:
Charges for services:
Connections charges
Rents
Direct charges to developers
Investment income
Refunds and reimbursements
Total revenues
Expenditures:
Parks and recreation:
Current:
Material and supplies
Public works:
Current:
Contractual services
Capital outlay
Construction costs
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
- - - 21,879 -
21,021 45,969 16 3,644 1,000
21,021 45,969 16 25,523 1,000
3,272 - - - -
16,898 - - - -
20,170 0 0 0 0
851 45,969 16 25,523 1,000
-
320,000
- -
77,000
-
-
- (112,113)
-
0
320,000
0 (112,113)
77,000
851
365,969
16 (86,590)
78,000
485,002
951,872
368 86,590
-
$485,853
$1,317,841
$384 $0
$78,000
78
Statement 18
3,272 -
- _ _ 1,064
39,839 22,685 62,524 303,974
- - - - - 16,898 488,302
0 0 0 0 39,839 22,685 82,694 793,340
16,153 29,847 37,094 0 (38,932) (19,839) 97,682 (306,111)
-
-
-
732 Novak
-
443,250
545,244
(138,875)
771 Sanitary
(88,000)
773 AAE -
Avenue Street
(387,113)
(50,744)
(138,875)
(48,125)
Sewer
772 Water
Storm Sewer
and Utility
735 Well
736 Sewer
Totals Nonmajor Capital Project
Connection
Connection
Connection
Improvements
Rehabilitation
Rehabilitation
Funds
(50,906)
0 7,318
(19,839)
153,819
188,389
479,286
718,130
2008
2007
68,134
3,729,485
3,541,096
$ _
$ _
$ _
$ _
$ _
$34,595
$356,564
$699,852
$864,247
$0 $32,268
$48,295
$3,883,304
21,879
25,393
-
-
-
-
-
-
-
244,895
16,153
29,847
37,094
-
907
2,846
158,497
176,161
-
-
-
-
-
-
-
6,185
16,153
29,847
37,094
0
907
2,846
180,376
487,229
3,272 -
- _ _ 1,064
39,839 22,685 62,524 303,974
- - - - - 16,898 488,302
0 0 0 0 39,839 22,685 82,694 793,340
16,153 29,847 37,094 0 (38,932) (19,839) 97,682 (306,111)
-
-
-
46,250
-
443,250
545,244
(138,875)
(48,125)
(88,000)
- -
-
(387,113)
(50,744)
(138,875)
(48,125)
(88,000)
0 46,250
0
56,137
494,500
(122,722)
(18,278)
(50,906)
0 7,318
(19,839)
153,819
188,389
479,286
718,130
915,153
24,950
68,134
3,729,485
3,541,096
$356,564
$699,852
$864,247
$0 $32,268
$48,295
$3,883,304
$3,729,485
79
80
902 Developer
903 Developer
Deposit Fund
Escrow Fund
Totals - Agency Funds
2008
2007
Assets
Cash and investments
$99,334
$16,500
$115,834
$157,915
Due from developers
3,899
-
3,899
8,440
Accounts receivable
-
-
-
3,000
Total assets
$103,233
$16,500
$119,733
$169,355
Liabilities
Escrow deposits payable
$ -
$16,500
$16,500
$31,660
Accounts payable
5,312
-
5,312
5,722
Due to developers
97,921
-
97,921
131,973
Total liabilities
$103,233
$16,500
$119,733
$169,355
80
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 20
AGENCY FUNDS
For The Year Ended December 31, 2008
903 Developer Escrow Fund
Assets:
Cash and investments $31,660 $16,500 $31,660 $16,500
Liabilities:
Escrow deposits payable $31,660 $16,500 $31,660 $16,500
Total Aeene
Assets:
Cash and investments
Balance
$125,861
$167,942
Balance
Due from developers
January 1,
3,899
8,440
December 31,
Accounts receivable
2008
Additions
Deletions
2008
902 Developer Deposit Fund
$169,355
$129,760
$179,382
$119,733
Assets:
Cash and investments
$126,255
$109,361
$136,282
$99,334
Due from developers
8,440
3,899
8,440
3,899
Accounts receivable
3,000
-
3,000
-
Total assets
$137,695
$113,260
$147,722
$103,233
Liabilities:
Accounts payable
$5,722
$5,312
$5,722
$5,312
Due to developers
131,973
97,921
131,973
97,921
Total liabilities
$137,695
$103,233
$137,695
$103,233
903 Developer Escrow Fund
Assets:
Cash and investments $31,660 $16,500 $31,660 $16,500
Liabilities:
Escrow deposits payable $31,660 $16,500 $31,660 $16,500
Total Aeene
Assets:
Cash and investments
$157,915
$125,861
$167,942
$115,834
Due from developers
8,440
3,899
8,440
3,899
Accounts receivable
3,000
-
3,000
-
Total assets
$169,355
$129,760
$179,382
$119,733
Liabilities:
Escrow deposits payable
$31,660
$16,500
$31,660
$16,500
Accounts payable
5,722
5,312
5,722
5,312
Due to developers
131,973
97,921
131,973
97,921
Total liabilities
$169,355
$119,733
$169,355
$119,733
81
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82
83
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84
CITY OF OAK PARK HEIGHTS, MINNESOTA
NET ASSETS BY COMPONENT
Last Five Fiscal Years
(Accrual Basis of Accounting)
Table 1
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
2008
$10,059,989
$9,928,521
$11,481,494
$11,799,071
$12,436,344
1,192,681
856,611
899,708
614,170
127,247
7,326,030
8,213,513
10,290,018
10,950,978
11,705,192
$18,578,700
$18,998,645
$22,671,220
$23,364,219
$24,268,783
$5,646,237
$5,985,350
$5,826,582
$6,355,129
$6,227,796
834,827
1,108,069
1,3 82,163
1,355,564
1,165,205
$6,481,064
$7,093,419
$7,208,745
$7,710,693
$7,393,001
$15,706,226
$15,913,871
$17,308,076
$18,154,200
$18,664,140
1,192,681
856,611
899,708
614,170
127,247
8,160,857
9,321,582
11,672,181
12,306,542
12,870,397
$25,059,764
$26,092,064
$29,879,965
$31,074,912
$31,661,784
«) 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.
85
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN NET ASSETS
Last Five Fiscal Years
(Accrual Basis of Accounting)
Table 2
Page I of 2
Expenses
Governmental activities:
General government
Public safety
Public works
Parks and recreation
Interest on long -term debt
Total governmental activities expenses
Business -type activities:
Water
Sanitary sewer
Sanitation
Storm sewer
Total business -type activities expenses
Total primary government expenses
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
Storm sewer
Sanitation
Capital grants and contributions
Total business -type activities
program revenues
Total primary government program revenues
2004 2005 2006 2007 2008
$832,609
$882,800
$987,597
$1,046,676
$1,477,836
1,155,243
1,210,179
1,226,042
1,234,769
1,347,164
602,111
511,137
755,989
796,025
796,532
123,737
138,378
152,899
184,008
224,426
67,365
55,695
43,965
37,255
138,399
2,781,065
2,798,189
3,166,492
3,298,733
3,984,357
323,527
373,996
398,766
387,766
405,965
517,595
560,876
661,367
606,458
670,661
167,258
34,150
65,149
34,277
59,115
41,082
164,572
147,565
153,848
-
1,049,462
1,133,594
1,272, 847
1,182,349
1,135,741
$3,830,527 $3,931,783 $4,439,339 $4,481,082 $5,120,098
$304,594
$365,512
$306,266
$155,820
$203,041
50,337
84,719
-
-
-
90,860
94,140
64,465
63,200
62,040
315,535
139,191
938,298
244,895
-
-
18,326
780,141
34,595
-
-
22,952
1,004,240
-
-
91,784
106,569
155,080
105,832
153,267
95,523
144,559
116,793
151,002
84,905
68,358
88,229
74,105
142,879
90,548
212,635
62,686
165,397
11,324
10,091
1,229,626
1,126,883
3,604,785
909,547
603,892
388,198
423,876
502,407
482,100
475,658
577,253
705,456
767,207
679,821
656,809
96,909
73,546
74,173
73,942
74,257
70,878
96,859
97,266
97,764
494
58,706
-
-
-
-
1,191,944 1,299,737 1,441,053 1,333,627 1,207,218
$2,421,570 $2,426,620 $5,045,838 $2,243,174 $1,811,110
86
CITY OF OAK PARK HEIGHTS, MINNES ®TA
CHANGES IN NET ASSETS
Last Five Fiscal Years
(Accrual Basis of Accounting)
Table 2
Page 2 of 2
2004 2005 2006 2007 2008
Net (expense) revenue:
Governmental activities
Business -type activities
Total primary government net
(expense)revenue
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
Abatement of prior year property taxes
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
($1,551,439) ($1,671,306) $438,293 ($2,389,186) ($3,380,465)
142,482 166,143 168,206 151,278 71,477
(1,408,957) (1,505,163) 606,499 (2,237,908) (3,308,988)
$1,979,288
$2,222,335
$2,417,014
$2,730,994
$3,261,049
3,060
2,040
29,838
111,090
56,693
199,737
258,614
425,160
532,827
606,996
-
-
244,099
9,237
20,895
29,125
25,206
16,254
27,626
22,148
-
-
-
-
(115,000)
90,423
(416,944)
101,917
(329,589)
432,248
2,301,633
2,091,251
3,234,282
3,082,185
4,285,029
19,148
29,268
49,037
60,103
43,080
(90,423)
416,944
(101,917)
329,589
(432,248)
(71,275)
446,212
(52,880)
389,692
(389,168)
$2,230,358 $2,537,463 $3,181,40 $3,471,877 $3,895,861
$750,194
$419,945
$3,672,575
$692,999
$904,564
71,207
612,355
115,326
540,970
(317,691)
$821,401
$1,032,300
$3,787,901
$1,233,969
$586,873
( ' ) The City implemented GASB Statement No. 34 for the fiscal year ended December 31, 2004. Therefore, information
for years prior to 2004 is not available.
87
CITY OF OAK PARK HEIGHTS, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS
Last Five Fiscal Years
(Modified Accrual Basis of Accounting)
Table 3
All other governmental funds:
Reserved for debt service
2004
2005
2006
2007
2008
General Fund:
Reserved
81,167
75,721
86,326
100,960
102,181
Unreserved:
-
-
47,315
-
-
Designated for cash flow
1,147,000
1,237,000
1,409,000
1,698,000
1,541,000
Designated for employee benefits
133,961
141,533
169,633
183,000
188,000
Designated for contingencies
419,000
439,000
493,000
595,000
542,000
Undesignated
147,647
286,210
230,869
39,620
345,370
Total general fund
$1,847,608
$2,103,743
$2,302,502
$2,515,620
$2,616,370
All other governmental funds:
Reserved for debt service
$454,694
$214,783
$717,829
$460,263
$127,247
Unreserved, reported in:
Special revenue funds
81,167
75,721
86,326
100,960
102,181
Debt service funds
-
-
47,315
-
-
Capital projects funds
5,381,734
6,107,908
8,022,588
8,480,884
14,977,678
Total all other governmental funds
$5,917,595
$6,398,412
$8,874,058
$9,042,107
$15,207,106
( ' ) 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.
rM
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
Last Five Fiscal Years
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
2004 2005
2006
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Abatement of property taxes
Capital outlay
Debt service:
Principal retirement
Interest
Bond issuance costs
Construction /acquisition costs
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Sale of capital assets
Bonds issued
Premium on bonds issued
Transfers in
Transfers out
Total other financing sources (uses)
Table 4
2007 2008
$1,969,207
$2,218,906
$2,423,246
$2,687,730
$3,271,807
305,758
225,516
553,450
42,342
32,078
70,362
101,519
102,818
188,594
141,141
304,594
365,512
306,266
155,820
203,041
150,126
294,846
1,886,776
192,545
102,199
78,274
69,850
84,730
66,189
63,602
199,737
258,614
425,160
532,827
606,996
374,241
139,191
938,298
244,895
-
109,958
125,405
155,080
105,832
134,987
20,327
10,117
136,514
83,064
27,672
3,582,584
3,809,476
7,012,338
4,299,838
4,583,523
793,871
851,437
941,875
1,002,763
1,075,616
1,119,533
1,172,803
1,180,441
1,193,451
1,292,465
296,997
208,848
423,010
458,241
632,530
88,180
99,980
107,071
138,491
146,928
-
-
-
-
115,000
50,104
21,000
443,822
411,101
160,907
400,000
395,000
190,000
125,000
750,000
68,334
56,710
44,535
37,688
134,850
-
-
-
-
111,020
622,218
358,344
1,353,195
916,653
740,657
3,439,237
3,164,122
4,683,949
4,283,388
5,159,973
143,347
645,354
2,328,389
16,450
(576,450)
-
-
244,099
9,237
21,289
-
-
-
-
6,300,000
-
-
-
-
5,827
178,923
180,098
190,417
432,280
515,083
(88,500)
(88,500)
(88,500)
(76,800)
-
90,423
91,598
346,016
364,717
6,842,199
Net change in fund balance $233,770 $736,952 $2,674,405 $381,167 $6,265,749
Debt service as a percentage of noncapital expenditur 16.9% 16.2% 8.1% 5.5% 21.3%
Debt service as percentage of total expenditures 13.6% 14.3% 5.0% 3.8% 17.1%
( ' ) 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.
I
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 3l,
Property
Property
Utility
Other
Capacity
Contribution
Value
Rate
Value
ofEMV
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%
2009
3,483,726
3,952,523
3,568,957
93,832
11,099,038
2,177,678
8,921,360
38.732
718,753,400
124.41%
Source: Continuing Disclosure Document
90
CITY 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
91
City
Overlapping Rates
Fiscal
Direct
School
Other
Year
Rate
County
District
Districts
Total
1999
22.895
30.016
54.022
15.549
122.482
2000
23.620
28.129
50.434
14.805
116.988
2001
23.692
26.016
50.373
17.267
117.348
2002
41.741
34.395
28.407
11.934
116.477
2003
35.799
33.303
26.566
12.067
107.735
2004
34.382
31.201
18.746
10.791
95.120
2005
36.488
28.599
19.393
9.358
93.838
2006
38.377
26.968
19.471
7.016
91.832
2007
35.731
25.673
19.004
3.563
83.971
2008
36.343
25.936
17.404
3.626
83.309
Source: Continuing Disclosure Document, Washington County website
91
CITY OF OAK PARK HEIGHTS, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
►11:
1999
Rank
Percentage
Taxable
of Total City
Capacity
Taxpayer
Value
Value
Value
Xcel Energy
$3,300,504
SC Mall LLC
404,268
OPH Pat LLC & OPH Val LLC
318,740
OPPGF LLC
223,894
Menard Inc.
216,930
VSSA Boutwells Landing LLC
503,766
Wal -Mart Stores, Inc.
241,438
Lowe's Home Centers, Inc.
127,652
W.A.T.E. Enterprises Inc.
130,619
Raduenz Dealership
126,236
Total
$5,594,047
Total All Property
$10,250,765
Rank
Percentage
of Total City
Taxable
Capacity
Capacity
Value
Value
32.20%
$3,361,282
3.94%
314,916
3.11%
-
2.18%
305,666
2.12%
219,072
4.91%
61,156
2.36%
147,896
1.25%
-
1.27%
-
1.23%
-
54.57%
$4,409,988
$6,354,756
Rank
1
2
Percentage
of Total City
Capacity
Value
52.89%
4.96%
0.00%
4.81%
3.45%
0.96%
2.33%
0.00%
0.00%
0.00%
69.40%
Source: Continuing Disclosure Document
2
3
4
5
6
7
8
9
10
Table 7
92
3
4
6
5
CITY OF OAK PARK HEIGHTS, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Table 8
Fiscal
Taxes
Year
Levied
Ended
For The
December 31,
Fiscal Year (1)
99.04%
1999
$1,409,400
2000
1,440,200
2001
1,588,435
2002
1,967,579
2003 1993 003
Collected Within The
Fiscal Year of the Levy
Collections
in
Subsequent
2004
Percentage
Amount
of Levy
2005
$1,394,993
98.98%
1,426,390
99.04%
1,566,938
98.65%
1,904,488
96.79%
1891046
94.88%
Collections
in
Subsequent
2004
I
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%
2008
3,286,230
3,211,392
97.72%
1. The levy amount
presented is after deduction
for Market
Value Homestead Credit.
$13,195
13,315
18,162
16,740
23,685
24,181
28,366
28,937
21,177
Total Collections to Date
$1,408,188
1,439,705
1,585,100
1,921,228
1,914,731
1,962,907
2,204,656
2,392,129
2,667,598
3,211,392
Percentage
of Levy
99.91%
99.97%
99.79%
97.64%
96.07%
99.87%
99.84%
99.88%
95.91%
97.72%
93
CITY OF OAK PARK HEIGHTS, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Table 9
.,
Governmental Activities
General
Percentage
Fiscal
Obligation
Improvement
of Tax
Per
Year
Bonds
Bonds
Total
Capacity
Capita
1999
$835,000
$2,570,000
$3,405,000
53.58%
848
2000
715,000
2,300,000
3,015,000
45.05%
762
2001
615,000
2,040,000
2,655,000
35.96%
668
2002
510,000
1,760,000
2,270,000
43.96%
529
2003
375,000
1,485,000
1,860,000
31.13%
430
2004
225,000
1,23 5,000
1,460,000
22.65%
315
2005
65,000
1,000,000
1,065,000
15.39%
228
2006
-
875,000
875,000
11.69%
188
2007
-
750,000
750,000
9.61%
161
2008
6,300,000
-
6,300,000
64.78%
1,326
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.
.,
CITY OF OAK PARK HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2008
Table 10
Estimated
Debt Percentage
Governmental Unit Outstanding Applicable
Debt repaid with property taxes:
Independent School District No. 834
$56,445,857
10.11%
Washington County
127,480,000
3.02%
NMISD No. 916
9,284,723
1.36%
Metropolitan Council
7,902,521
0.27%
Metro Transit
108,502,372
0.32%
Subtotal - overlapping debt
City direct debt
Total direct and overlapping debt
Sources: Continuing Disclosure Document
Estimated
Share of
Overlapping
Debt
$5,706,676
3,849,896
126,272
21,337
347,208
10,051,389
6,300,000 100.00% 6,300,000
$16,351,389
95
CITY OF OAK PARK HEIGHTS, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Table 11
Legal Debt Margin Calculation for Fiscal Year 2008
Market value
$673,570,600
Debt limit (2% of market value)
13,471,412
Debt applicable to limit:
Margin
General obligation bonds
6,300,000
Less: Amount set aside for repayment
6,491,622
of general obligation debt
127,247
Total net debt applicable to limit
6,427,247
Legal debt margin
$7,044,165
Legal Debt Margin Calculation for Fiscal Years 1998 Through 2007
Fiscal Debt
Year Limit
Net Debt
Legal
Applicable to
Debt
Limit
Margin
Amount of Debt
Applicable to
Debt Limit
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%
2007
11,581,796
- 11,581,796
0.00%
96
CITY OF OAK PARK HEIGHTS, MINNESOTA
PLEDGED REVENUE COVERAGE Table 12
Last Ten Fiscal Years
2007 35,180 125,000 37,688 0.216
2008 31,221 750,000 10,833 0.041
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.
97
Improvement Bonds
Special
Fiscal
Assessment
Debt Service
Year
Collections
Principal Interest
Coverage
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
2008 31,221 750,000 10,833 0.041
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.
97
CITY OF OAK PARK HEIGHTS, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Fiscal
Unemployment
Rate (2)
Personal
Income
Year
Population
1999
4,015
2000
3,957
2001
3,977
2002
4,291
2003
4,329
2004
4,633
2005
4,664
2006
4,676
2007
4,751
(1)
(1)
2.60%
3.60%
4.10%
4.00%
3.40%
3.50%
6.30%
2008 (1) (1)
Sources: Metropolitan Council (population), Continuing Disclosure Document (unemployment rate)
( ' ) Inforination Not Available
(Z) Washington County rate
Table 13
Per
Capita
Personal
Income
M
CTi'Y 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 Hearing & 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
Table 14
•.
635
-
361
350
310
150
184
163
113
-
77
_
127
-
113
-
84
-
215
-
-
125
-
105
-
30
-
24
-
16
2,219
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,
1999 2000 2001
3
3
3
3
3
3
3
3
3
10
10
10
3
3
3
22
22
22
100
Table 15
Full -Time Equivalent Employees as of December 31,
2002 2003 2004 2005 2006 2007 2008
3
2
2
2
2
2
2
3
3
3
3
3
3
3
3
2
2
2
2
2
2
10
10
10
10
10
10
10
3
3
4
4
4
4
4
22
20
21
21
21
21
21
1®
CITY OF OAK PARK HEIGHTS, MINNESOTA
OPERATING INDICATORS BY FUNCTION /PROGRAM
Last Ten Fiscal Years
Sources: Various City departments.
102
Fiscal Year
Function/Program
1999
2000
2001
Police:
Physical arrests
245
221
256
Parking violations
114
162
218
Traffic violations
593
728
859
Fire:
Fire and related calls
52
55
61
Medical calls
82
107
139
Building inspection:
Permits issued:
Residential
62
13
46
Commercial
35
6
73
Total permit valuation
$13,439,362
$19,485,026
$5,799,263
Water:
Connections
1,152
1,219
1,201
Average daily demand (thousands of gallons)
577,000
570,000
600,000
Sewer:
Connections
1,205
1,281
1,288
Sources: Various City departments.
102
Table 16
Fiscal Year
2002
2003
2004
2005
2006
1,016
106
263
237
308
251
240
155
145
118
123
124
611
712
1,023
1,089
738
108
122
113
115
119
174
164
200
251
302
54
44
48
2
11
75
13
11
13
15
$11,651,369
$19,878,493
$18,043,522
$12,732,475
$36,975,066
1,198
1,212
1,259
1,277
1,289
576,000
645,000
611,000
614,000
676,000
1,281 1,273 1,235 1,251 1,264
2007 2008
207
224
92
135
613
1,016
106
98
270
292
19
4
8
2
$6,521,063
$18,707,532
1,304
1,315
681,452
654,172
1,274 1,283
103
CITY OF OAK PARK HEIGHTS, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION /PROGRAM
Last Nine Fiscal Years
Sources: Various City departments.
1�
Fiscal Year
Function/Program
2000
2001
2002
Police:
Stations
1
1
1
Squad cars
7
7
7
Fire stations
Other public works:
Miles of paved streets
22.0
22.0
22.0
Streetlights
265
265
265
Traffic signals
2
2
2
Parks and recreation:
Parkland acreage
80
80
105
Number of parks
4
4
4
Water:
Water mains (miles)
25.4
25.5
25.5
Fire hydrants
299
302
302
Storage capacity (thousands of gallons)
750
750
750
Wastewater:
Sanitary sewers (miles)
21.9
21.9
21.9
Storm sewers (miles)
11.8
11.8
12.0
Sources: Various City departments.
1�
Table 17
Fiscal Year
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 2006 2007 2008
1
1
1
1
6
6
6
6
22.0
22.0
22.0
22.0
392
392
396
396
2
2
2
2
105
105
104
108
4
5
5
5
26.6
26.6
26.8
26.8
316
316
316
316
750
750
750
750
23.3
23.3
24.9
24.9
12..5
12.5
12.6
12.6
105
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106