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HomeMy WebLinkAboutFinancial Statements Year Ended December 31, 1977 CITY OF OAK PARK HEIGHTS, MINNESOTA FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 1977 CITY OF OAK PARK HEIGHTS, MINNESOTA TABLE OF CONTENTS PAGE NO. AUDITOR'S REPORT - AUDITOR'S COMMENTS COMBINED BALANCE SHEET - ALL FUNDS Statement 1 1 Investment Transactions Schedule t -A 2 Schedule of Interfund Audit Adjustments Schedule 1 -B 3 -' Construction Costs by Project Schedule I -C 4 Schedule of Bonds Payable Schedule 1•D 5 COMBINED CONDENSED STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS - ALL FUNDS Statement 2 6 GENERAL FUND: -' Balance Sheet Statement 3 7 Statement of Changes in Fund Balance Statement 4 8 Summary Statement of Cash Receipts and Disbursements Statement 5 9 Statement of Revenue Receipted Compared to Budget Schedule 5 ^A 10 Statement of Expenditures Disbursed Compared to Budget Schedule 5 -B 11 SPECIAL REVENUE FUNDS: Balance Sheet Statement 6 12 Statement of Changes in Fund Balance Statement 7 13 Statement of Cash Receipts and Disbursements Compared to Budget: Revenue Sharing Statement 8 14 Anti-Recession Fiscal Assistance Statement 9 15 LAWCON GRANT CAPITAL PROJECT FUND: .,., Balance Sheet Statement 10 16 Statement of Changes in Fund Balance Statement 11 17 Statement of Cash Receipts and Disbursements Statement 12 18 ENTERPRISE FUNDS: Balance Sheet Statement 13 19 Statement of Changes in Retained Earnings Statement 14 20 Statement of Income and Expense Statement 15 21 Statement of Changes in Financial Position Statement 16 22 .,, SPECIAL ASSESSMENT FUNDS: Balance Sheet Statement 17 23 Statement of Changes in Fund Balance Statement 18 24 -25 Statement of Cash Receipts and Disbursements Statement 19 26 -27 STATEMENT OF GENERAL FIXED ASSETS Statement 20 28 FOOTNOTES TO FINANCIAL STATEMENTS �9 -30 CITY OF OAK PARK HEIGHTS, MINNESOTA TABLE OF CONTENTS SUPPLEMENTAL INFORMATION PAGE NO. STATEMENT OF AUDITOR'S RESPONSIBILITY AS TO SUPPLEMENTAL DATA -- DEBT SERVICE PAYMENTS UNTIL MATURITY Exhibit 1 31 SECURITY FOR DEPOSITS Exhibit 2 32 INSURANCE IN FORCE Exhibit 3 33 ORGANIZATION Exhibit 4 34 "' TAXABLE VALUATIONS, TAX LEVIES AND MILL RATES Exhibit 5 35 DELAH U NT VOTO & CO., LTD. - CERTIFIED PUBLIC ACCOUNTANTS WHITE BEAR LAKE, MINNESOTA 55110 PHONE 426.3263 P. O. BOX 8678 To the Honorable Mayor and Members of the City Council City of Oak Park Heights 6141 Panama Avenue North Stillwater, Minnesota 55082 We have examined the financial statements of the following funds and account groups of the CITY OF OAK PARK HEIGHTS, MINNESOTA at December 31, 1977 and for the year then ended. GENERAL FUND ENTERPRISE SPECIAL REVENUE SPECIAL ASSESSMENT _ CAPITAL PROJECTS GENERAL FIXED ASSETS Our examination (a limited general audit) was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances, except as explained in the following paragraph. The City does not maintain fixed asset records which provide complete accounting control over quantities and cost of all general fixed assets and it was, therefore, impractical to audit the accompanying statement of general fixed assets and accord- _ ingly we do not express an opinion on the financial statements of the general fixed assets group of accounts. The accompanying Statement of Cash Receipts and Disbursements have been prepared on the cash basis (Note 1) and, therefore, do not purport to present the results of operations as they would have appeared had generally accepted modified accrual basis accounting principles been applied in their presentation. In our opinion (except as noted above), the aforementioned financial statements present fairly the financial position of the various funds and account groups of the CITY OF OAK PARK HEIGHTS, MINNESOTA at December 31, 1977, and the changes in fund balance of such funds and the results of operations and changes in financial position of the Enterprise Funds for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Also, in our opinion, the accompanying Statements of Cash Receipts and Disbursements present fairly the recorded cash transactions of the above funds of the CITY OF OAK PARK HEIGHTS, MINNESOTA for the year ended December 31, 1977, on a basis consistent with that of the preceding year. DE LA HUNT VOTO & CO., LTD. Certified Public Accountants Date Field Work Completed: March 4, 1978 Date Audit Report Signed: March 29, 1978 MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS CITY OF OAK PARK HEIGHTS, MINNESOTA AUDIT COMMENTS The CITY OF OAK PARK HEIGHTS maintains its financial records on the basis of cash receipts and disbursements. The accompanying Balance Sheets, Statements of Changes in Fund Balance, Statement of Income and Expense, and Statement of Changes in Financial Position have been prepared on the "modified accrual basis" or "accrual basis" as explained in Footnote 1. All necessary adjustments to the City's "cash basis" financial records have been made to present these statements as noted above. The accompanying Statements of Cash Receipts and Disbursements are presented on the "cash basis ". The Combined Balance Sheet — All Funds and the Summary of Cash Receipts and Disbursements — All Funds are presented in Statements 1 and 2. Separate financial statements for each fund or fund group are presented in Statements 3 through 20. The following Comments relate to the Combined Balance Sheet — All Funds. CASH AND INVESTMENTS Clerk's Balance: Checking Account $ 217,952 Investments and Savings 941,44$ With Paying Agents 12,050 Change Fund 50 Total S1.171.S00 The Clerk's Balance (checking account) was $217,952 at December 31, 1977 and averaged approximately $275,000 during 1977. We recommend that the City implement procedures to minimize uninvested cash balances and maximize interest earnings. This could be accomplished using short — term certificates of deposit or a daily interest savings account. To assist the City Clerk in maximizing interest earnings, we also recommend that the City Council authorize the City Clerk to issue checks (to invest surplus cash) prior to formal Council approval. Such authorization should be conditioned City of Oak Park Height Comments, Page 2 upon and subject to approval of the Mayor (prior to investment) and post - approval by the City Council. Formal Council action is required to effect this procedure. Investments and savings transactions for 1977 are summarized in Schedule 1 -A. Balances on hand at December 31, 1977 were as follows: SAVINGS CERTIFICATES: Oak Park Heights State Bank - 7.2 %. $166,800 Cosmopolitan State Bank of Stillwater - 5.75% to 6% 220,552 First National Bank of Stillwater - 5.75% to 6% 291,614 First State Bank of Bayport - 7.25% 108,000 SAVINGS ACCOUNTS: Oak Park Heights State Bank - 5% 80,692 Washington Federal Savings and Loan of Stillwater - 6.75% 73,790 ` Total S941.448 Interest received or added to investments and savings totaled $33,177 during 1977 representing a $7,500 increase over 1976. SECURITY FOR DEPOSITS Security for deposits pledged by the City's depositories are presented in Exhibit 2. Our analysis of collateral requirements and actual collateral pledged indicated that all depositories had pledged sufficient collateral except the First National Bank of Stillwater, as follows: City of Oak Park Heights Comments, Page 3 FIRST OTHER NATIONAL DEPOSITORIES COLLATERAL REQUIREMENTS: Demand Deposits $ 217,952 Savings Certificates $291,614 495,352 Savings Accounts 154,482 Total Deposits $291,614 $ 867,786 Less: Federal Insurance 100,000 413,790 Net Deposits 5191.614 S 453.996 COLLATERAL REQUIREMENTS —110% $210,775 $ 499,396 COLLATERAL PROVIDED — EXHIBIT 2 100,000 1,200,000 EXCESS COLLATERAL S 700.604 COLLATERAL DEFICIENCY $110,775 We recommend that the City correct the above situation at the earliest possible time and implement procedures to insure full compliance with Minnesota Statutes, Chapter 118. DUE FROM COUNTY GENERAL FUND: General Property Taxes $ 163 SPECIAL ASSESSMENT FUNDS: General Property Taxes 67 Special Assessments 104 Total S 334 The above amounts represent collections by Washington County during November ` and December, 1977• These amounts will be remitted to the City in 1978. DUE FROM OTHER GOVERNMENTAL UNITS: WATER OPERATING GENERAL ENTERPRISE TOTAL FUND FUND C.E.T.A. Reimbursement $ 3,827 $ 3,827 Court Fine 77 77 Metropolitan Waste Control Commission: Debt Payment Credit 280,455 $280,455 Current Value Credit 897 897 Deferred Charges 11,659 11,659 Totals 5296.915 S 3.904 5293.011 City of Oak Park Heights Comments, Page 4 The C.E.T.A. reimbursements and court fines are current receivables which were received by the City early in 1978. The amounts due from the M.W.C.C. represent the balance due from the transfer of the interceptor sewer lines to the Metropolitan Waste Control Commission in 1970. These credits will be used to reduce the City's sewer usage billings for the years 1978 through 2000. The Debt Payment Credits will be allowed in the years 1978 through 1997 at reducing amounts per year. The current Value Credit will be allowed in the years 1978 through 2000 at a rate of $39 per year. The Deferred Charges represent adjustments to the City's sewer usage billings for the years 1971 and 1972. During 1977 the City received a partial refund of the deferred charges totaling $400 plus interest of $492. DUE FROM DEVELOPERS Due from Developers represents cost incurred by the City to be reimbursed by developers and other organizations. The $9,609 balance at December 31, 1977 includes '— several accounts that have remained unpaid for one or more years. We recommend that the City continue to extend its collection procedures on these accounts to insure a more timely collection. The City maintains several of the developer accounts in the General Fund. These accounts represent costs incurred (mainly for engineering and related expenses) which are to be billed to the developer rather than an expenditure of City funds. These activities are more properly accounted for in a Trust and Agency Fund rather than the City's General Fund. We recommend that the City amend its accounting policies and account for costs such as these in one or more Trust and Agency Funds rather than the General Fund effective January 1, 1978. City of Oak Park Heights Comments, Page 5 DUE FROM (TO) OTHER FUNDS — The Statement of Interfund Audit Adjustments (Schedule 1 — C) presents a detailed explanation of cash transfers necessary to adjust the individual fund cash balances at December 31, 1978. The following schedule summarizes these adjustments by fund: FUND DUE FROM DUE TO FUND DESCRIPTION NO. OTHER FUNDS OTHER FUNDS General Fund 101 $ 3,612.02 Enterprise Funds: Water Operating 301 $ 500.00 Special Revenue Funds: Revenue Sharing 401 1,651.52 Special Assessment Funds: G.O. Bonds of 1967 and 1968 501 2,544.53 598.00 G.O. Bonds of 1971 502 535 G.O. Bonds of 1976 506 123.80 G.O. Bonds of 1977 509 1,460.50 Consolidated Construction 510 598.00 1,885.61 ... Totals — All Funds S 6.754.55 S 6.754.55 The above adjustments should be recorded on the City's financial records during 1978• Council action is required to effect these transfers. We recommend that the above transfers be recorded as early as possible in 1978 so that the cash balances will not be distorted. CONNECTION CHARGES RECEIVABLE Connection charges receivable represents sewer and water hook —up charges to property owners, but not collected at December 31, 1977• The $30,709 balance at December 31, 1977 represents a $2,500 decrease during 1977• We recommend that the City continue to extend its collection procedures on these accounts to effect collec— tion and to assist in eliminating a cash overdraft of the new Consolidated Construction Special Assessment Fund. City of Oak Park Height- Comments, Page 6 DELINQUENT TAXES RECEIVABLE Delinquent taxes receivable were $5,320 at December 31, 1977 representing a $2,530 increase during 1977. These taxes (when collected) will be remitted to the City with the regular tax settlements. Tax collection during 1977 amounted to 99% of taxes levied in 1976 for collection in 1977. SPECIAL ASSESSMENTS RECEIVABLE -' DECEMBER 31, INCREASE 1977 1976 (DECREASE) Delinquent $ 4,361 $ 8,897 $ (4,536) Deferred 268,140 349,516 (81,376) Totals 5272.501 $358.413, S (85.9121 Deferred Assessments Receivable represents assessments to be collected in years 1978 through 1999 with interest at rates between 6% and 8 %. The portion of the December 31, 1977 deferred balance, certified to the county for collection in 1978 was $40,790, including interest of $19,674. FUND BALANCE DECEMBER 31, INCREASE FUND 1977 1976 (DECREASE) General $ 268,754 $ 239,503 $ 29,251 Special Revenue: Revenue Sharing 53,691 53,652 39 Anti - Recession Fiscal Assistance (643) 1,588 (2,231) Capital Project: Lawcon Grant 80,368 -0- 80,368 Enterprise: —' Water 54,203 46,625 7,578 Sewer 53,026 38,799 14,227 Special Assessment: ... Debt Service 635,695 700,453 (64,758) Construction 95,585 103,975 (8,390) _ Totals S1.240.679 51.184.595 S 56.084 City of Oak Park Height? Comments, Page 7 GENERAL FUND The General Fund Balance Sheet, Statement of Changes in Fund Balance and Summary Statement of Cash Receipts and Disbursements are presented in Statements 3, 4 and 5. Schedules 5 —A and 5 -13 present a detailed schedule of cash receipts and cash disbursements compared to budget. The General Fund Balance increased by $29,000 during 1977 due primarily to operating revenues exceeding the 1977 revenue budget as shown in Schedule 5 —A. The fund balance of the General Fund was $268,754 at December 31, 1977 and $89,105 of that amount was appropriated as follows: APPROPRIATION AMOUNT Lawcon Grant Matching Funds $ 55,000 1978 Operations 19,105 Future Building Expansion 15,000 Total S 89.ios SPECIAL REVENUE FUND The Special Revenue Fund Balance Sheet, Statement of Changes in Fund Balance and Statement of Cash Receipts and Disbursements are presented in Statements 6, 7, 8 and 9. These funds (Revenue Sharing and Anti — Recession Fiscal Assistance) were previously classified as Trust and Agency Funds. These funds have been reclassified to more appropriately present the financial operations of these funds. City of Oak Park Height - Comments, Page 8 REVENUE SHAR ING A Summary of Revenue Sharing transactions from December 31, 1972 through December 31, 1977 is as follows: PRIOR YEARS 1977 TOTAL REVENUE: Revenue Sharing Entitlements $134,227 $ 33,256 $167,483 Interest on Investments 1,426 1,326 2,752 Total Revenue 5135.653 S 34.582 S170,2 EXPENDITURES: Purchase of Land: Principal $ 75,000 $ 75,000 Interest 3,578 3,578 Playground Equipment 1,673 1,673 Land Easement 1,750 1,750 Police Vehicles $ 9,750 9,750 Parks Chain Link Fence Project 21,295 21,295 Bayport Fire Protection Contract 3,498 3,498 Total Expenditures S 82.001 S 34.543 5116.544 BALANCE — December 31, 1977 $ 53,691 _ APPROPR IAT IONS: Office Equipment $ 4,000 Grass Cutting Equipment 3,500 Recreation Equipment 10,000 Matching Lawcon Funds 25,000 Total Appropriations 42,500 UNAPPROPRIATED BALANCE — December 31, 1977 S 11.191 '— The remaining unappropriated balance represents Revenue Sharing monies and /or interest earnings attributable to the following Federal entitlement periods and must be appropriated by the City as follows: APPROPRIATION ... ENTITLEMENT PERIOD AMOUNT DEADLINE January 1, 1977 — September 30, 1977 $ 10,783 September 30, 1979 October 1, 1977 — September 30, 1978 408 September 30, 1980 Total S 11.191 City of Oak Park Heights Comments, Page 9 The rules and regulations of the Federal Office of Revenue Sharing have changed substantially effective January 1, 1977. Actions of the City (both administratively and at the City Council level) to appropriate Revenue Sharing monies must be taken r in conjunction with a series of public hearings. Additionally, new regulations relating to anti — discrimination of the handicapped are now in effect. Alternatively, old regulations relating to "priority expenditure classifications" have been deleted -- and the City is more free to expend these monies at its own discretion. We recommend that the City continue to monitor its procedures to insure compliance with these new Revenue Sharing rules and regulations. The new rules and regulations of the Federal Office of Revenue Sharing include a requirement that the financial records of the City be audited and that the City obtain a "compliance audit" and send a copy of the "compliance audit" to the Office of Revenue Sharing at least once every three years beginning with 1977. The City's regular audit satisfies the financial audit requirements. The "compliance audit" requires additional verification and audit procedures not included in the regular audit. Guidelines for this special "compliance audit" were issued in January, 1978. This special "compliance audit" will be performed at a later date, subject to City Council concurrence and authorization. ANTI— RECESSION FISCAL ASSISTANCE A summary of the Anti— Recession Fiscal Assistance transactions for 1976 and 1977 is as follows: 1976 1977 TOTALS REVENUE: Federal Grants S 2.321 S 2.096 $ 4,417 EXPENDITURES: Personal Services S 732 S 4.328 5,060 BALANCE (DEFICIT) — December 31, 1977 S (643) City of Oak Park Heights Comments, Page 10 The Federal rules and regulations pertaining to Anti — Recession Fiscal Assistance -- grants require a City to appropriate or obligate these monies within six months of the date of receipts. Our examination disclosed that the City did disburse these monies r for the payment of recreation and public safety salaries; however, we were unable to determine that the City Council had formally appropriated or obligated these monies for those purposes. We recommend that the City investigate this situation —. and approve an appropriate Council action to satisfy this requirement. CAPITAL PROJECTS FUND The Capital Projects Fund Balance Sheet, Statement of Changes in Fund Balance and Statement of Cash Receipts and Disbursements are presented in Statements 10, 11 and 12. The City had one Capital Project Fund, the Lawcon Grant — Park Improvement Project, during 1977• ENTERPRISE FUNDS The Enterprise Fund Balance Sheet, Statement of Changes in Retained Earnings, Statement of Income and Expense and Statement of Changes in Financial Position are presented in Statements 13, 14, 15 and 16. The City maintains its financial records on the basis of cash receipts and disbursements. The records have been adjusted (for receivables, payables and other accruals) to properly reflect income on the accrual basis and to present the financial position of each enterprise account at December 31, 1977. Condensed comparative statements of income and expense for each of the City's utility operations follow. These condensed, comparative statements have been changed from prior years, in that depreciation is shown for machinery and equipment only. Depreciation of the wells, tanks, pumphouses, distribution system and collection system (i.e. those assets not financed by the utility operations) is not reflected as a charge against operating ,.., revenues. City of Oak Park Heights Comments, Page 11 WATER OPERATING ACCOUNT 1977 1976 AMOUNT PER CENT AMOUNT PER CENT INCOME: Customer Billings $ 41,182 96.05% $ 41,523 97.77% Other 1,695 3.95 947 2.23 Total Income $ 42,877 100.00% $ 42,470 100.00% OPERATING EXPENSES: Salaries $ 8,369 19.52% $ 6,336 14.92% Contractual Services 21,627 50.44 7,984 18.80 Other 2,613 6.09 2,068 4.87 Total Operating Expenses $ 32,609 76.05% $ 16,388 38.59% OPERATING INCOME BEFORE DEPRECIATION $ 10,268 23.95% $ 26,082 61.41 DEPRECIATION — Machinery and Equipment 2,690 2,550 NET INCOME $ 7.578 S 23.532 The Net Income of the Water Operating Account decreased by $16,000 due primarily to increased costs of repairs. SEWER OPERATING ACCOUNT 1977 1976 AMOUNT PER CENT AMOUNT PER CENT INCOME: Customer Billings $ 36,165 94.78% $ 29,987 91.58% Other 1,992 5.22 2,756 8.42 Total Income $ 38,157 100.00% $ 32,743 100.00% OPERATING EXPENSES: M.W.C.C. $ 20,919 54.82% $ 13,962 42.64% Other 2,428 6.37 1,062 3.24 Total Operating Expenses $ 23,347 61.19% $ 15,024 45.88°% OPERATING INCOME BEFORE ..,, DEPRECIATION $ 14,810 38.81% $ 17,719 54.12%, DEPRECIATION — Machinery and Equipment 583 583 NET INCOME $ 14.227 $ 17.136 City of Oak Park Heights Comments, Page 12 The Net Income of the Sewer Operating Account decreased by $2,900 due to in— creased billings from the M.W.C.C. The Metro Waste Control Commission bills the City annually on an estimated basis. These estimated billings are adjusted at a later date and the City is billed the additional amount or given a refund. These estimated billings vary from year to year and may cause material variances in annual profits (or losses) of the sewer operating account. The Metro Waste Control Commission billings for calendar years 1971 through 1978 are as follows: ESTIMATED FINAL YEAR BILLINGS BILLINGS 1971 $ 9,992 $ 4,175 1972 (53) 210 1973 (5,886) (1,803) 1974 (3,825) 258 19 (1,954) 6,641 1976 4,682 11,698 1977 13,903 Not Available –. 1978 20,387 Not Available NOTE: The bracketed figures above indicate payments from the M.W.C.C. The unbracketed figures above indicate payments to the M.W.C.C. As the above schedule indicates, the billings from the M.W.C.C. vary greatly and are increasing. These charges represent the largest single expense of the _ Sewer Operating Account and fluctuations in this expense can mean the difference between a net income or a net loss. We recommend that the City monitor the billings from the M.W.C.C. (and the related Customer Billings) to insure adequate levels of operating income and net income. SPECIAL ASSESSMENT FUND The Balance Sheet, Statement of Changes in Fund Balance and Statement of Cash — Receipts and Disbursements for the City's Special Assessment Fund are presented in Statements 17, 18 and 19. A Special Assessment Fund is a classification of funds to w City of Oak Park Heights Comments, Page 13 accounts for special assessments levied to finance public improvements or services deemed to benefit the properties against which assessments are levied. Special Assessment Fund accounts for both the construction phase and debt service phase of local improvement projects which will be wholly or partially assessed, The accounting principles employed by the Special Assessment Fund are such that future interest on bonds payable is not reflected as a liability until the year it becomes payable. Also, future interest on special assessments is not reflected until the year it becomes receivable. Therefore, the fund balance or deficit does not reflect future interest receivable nor payable. In order to project the final fund surplus or deficit these two items must be added /subtracted from the fund balance. The following schedule projects the surpluses or deficits based upon estimated future interest on currently collectible special assessments and interest payments to the maturity of the bond issues. Future interest earnings on investments are not taken into consideration because of the uncertainties involved. The effect of these future interest earnings would be to increase the projected surplus or decrease the projected deficit. BALANCE PROJECTED (DEFICIT) FUTURE INTEREST SURPLUS ACCOUNT 12/31/77 ASSESSMENTS BONDS (DEFICIT) G.O. Bonds of 1967 and 1968 $711,987 $110,000 $624,640 $197,347 Storm Sewer Bonds of 1971 27,415 1,000 54,035 (25,620) G.O. Bonds of 1976: Construction Account 32,288 32,288 Debt Service Account (8,207) 14,000 53,260 (47,467) Consolidated Construction 58,275 40,000 98,275 Totals S821.758 S165.000 S731.935 S254.823 City of Oak Park Heights Comments, Page 14 G.O. BONDS OF 1967 AND 1968 The projected surplus in the amount of $197,347 represents an $18,000 increase during 1977 due primarily to interest earnings on investments. a The projected surplus indicates that this account will have sufficient assets to meet all bond principle and interest requirements. These bonds mature during the years 1978 through 1998. The surplus of this account is committed to these bonds (until the bonds mature and are fully paid) except that the City could use this surplus to reduce or cancel future scheduled tax levies on these issues. We recommend that the City reduce the 1978 collectible 1979 tax levies on these issues by $25,000 to $30,000 (see later Comments under Storm Sewer Bonds of 1971). STORM SEWER BONDS OF 1971 The projected deficit in the amount of $25,620 represents a $400 deficit decrease during 1977. The projected deficit indicates that this account will need additional financing to meet all bond principal and interest requirements. These bonds mature -- during the years 1978 through 1991. The projected deficit of this account will become a cash deficit by 1988 or 1989. We recommend that the City establish a criteria to finance the above projected deficit. The following options and alter- natives are available, at the discretion of the City Council: 1. Increased future debt service tax levies. 2. Cash transfers from other funds having surpluses available. We recommend that the City levy an additional $25,000 to $30,000 tax levy in i October, 1978 to be collected in 1979. Additionally, the City may cancel $25,000/ $30,000 of the 1978/79 tax levy for the G.O. Bonds of 1967 and maintain an overall debt service tax levy which is consistent with existing scheduled debt service levies .- (see above Comments). Council action is required to effect the above. i City of Oak Park Heights Comments, Page 15 G.O. BONDS OF 1976 During 1976 the City issued special assessment bonds in the amount of $249,000 to finance various improvement projects. The proceeds of this bond issue were appropriated to the following improvement projects: BOND ASSESSMENTS IMPROVEMENT PROCEEDS ANTICIPATED ACTUAL Swager — 6th Addition $138,160 $146,900 $117,829 Baudet Addition and Peller Ave. 97,000 44,700 32,577 Totals 5235.160 5191.600 s150.406 Actual construction costs totaled $203,000 rather than the expected $235,000 leaving a $32,000 balance in the construction account at December 31, 1977. This balance may be used to finance a similar improvement project or transferred to the debt service account for this bond issue. Actual assessments were less than anticipated due primarily to the reduced construction costs. The projected deficit in the amount of $47,467 at December 31, 1977 is the result of special assessments being less than anticipated and special assessment prepayments ($4,700 for 1976 and $84,000 for 1977) and the resulting decrease in estimated future interest thereon. The projected deficit means that this account will require additional financing to meet its bond principal and interest requirements. We recommend that the City utilize the construction account balance to reduce the projected deficit and that the City maximize future interest on investments to eliminate the remaining projected deficit (i.e. $100,000 invested at 5% per annum will yield $5,000 per year and eliminate the remaining deficit over the term of this bond issue). City of Oak Park Heightz Comments, Page 16 CONSOLIDATED CONSTRUCTION During 1977 the City closed the following completed construction accounts and created the Consolidated Construction Account: OTHER ACCOUNT CASH ASSETS Swager No. 2 $ 4,602 $ 6,295 Swager No. 3, 4 and 5 7,900 11,222 Port of Sunnyside (23,548) 51,804 Total V11.046) S 69.321 The resulting cash deficit of $11,046 will be eliminated within approximately two years as the City collects the special assessments and other receivables of this account. The fund balance of this account has been earmarked to finance the pro- jected deficit of the Storm Sewer Bonds of 1971 Debt Service Account. G.O. BONDS OF 1977 During 1977 the City issued special assessment bonds in the amount of $100,000 to finance various Public Improvements. These projects were in process at December 31, 1977 and should be completed in 1978. These projects are being financed partially by bond proceeds and partially by direct charges to developers and other benefiting property owners. INTERNAL ACCOUNTING CONTROLS Our examination included a review of the City's system of internal control. A system of internal control comprises the plan of organization and all of the coordinate .- methods and measures adopted within a City to safeguard its assets; check the accuracy and reliability of its accounting data; promote operational efficiency; and insure adherence to Council policies and various Federal, State and local statutes. City of Oak Park Heigh Comments, Page 17 An accounting system is a part of the overall system of internal control, and it is the means by which information is accumulated, recorded, classified, summarized and reported. The prime purpose of any accounting system is to provide complete and accurate financial information: (1) in proper form, (2) on a timely basis, and (3) with a minimum of cost. Current auditing standards now require an auditor to communicate any material weaknesses in internal accounting controls directly to City Council and /or City Administrators. Accordingly, we have prepared (as a separate report) our communi— cation on this topic. SUMMARY The following listing is a summary of items which should be recorded, investigated and /or resolved during 1978. y 1. Establish and implement procedures to minimize uninvested cash balances and maximize interest earnings on City monies available for investment. 2. Obtain the required security for bank deposits and implement procedures to insure full compliance with Minnesota Statutes, Chapter 118. 3. Continue to extend collection procedures on amounts due from developers _. and connection charges. 4. Establish Trust and Agency accounting for payments for developers, effective January 1, 1978. 5. Record cash transfers to effect the 1977 interfund audit adjustments. 6. Continue to monitor the City's procedures relating to Revenue Sharing and Anti — Recession Fiscal Assistance to insure full compliance with the various rules and regulations of these Federal programs. City of Oak Park HeighL.3 Comments, Page 18 7. Approve a special "compliance audit" for Revenue Sharing and Anti — Recession Fiscal Assistance for 1977 and /or 1978. 8. Formally appropriate the Anti — Recession Fiscal Assistance monies received to date. 9. Continue to monitor the operations (costs and revenues) of the City's Water and Sewer Utility Accounts to insure adequate levels of net income 10. Levy an additional $25,000 to $30,000 tax levy (in October, 1978 for collection in 1979) for the Storm Sewer Bonds of 1971. 11. Utilize the G.O. Bonds of 1976 Construction Account surplus to reduce the projected deficit of the related debt service account and maximize future interest on investments to eliminate the remaining projected deficit. 12. Consider improvements to the City's internal accounting controls as recommended in our separate report. Respectfully submitted, DE LA HUNT VOTO & CO., LTD. Certified Public Accountants CITY OF OAK PART; HEIGHTS, MINNESOTA COMBINED BALANCE SHEET - ALL FUNDS DECEMBER 31, 1977 SPECIAL TOTAL GENERAL REVENUE ASSETS (NOTE 2) FUND FUND Cash: Clerk's Balance (Overdraft) $ 217,951.70 $ 56,086.78 $ (600.80) _ Investments - At Cost 941,448.16 235,590.13 55,342.80 With Paying Agents 12,050.00 Change Fund 50.00 50.00 Total Cash $1,171,499.86 $291,726.91 $ 54,742 00 Due from County 334.23 162.69 Due from Other Governmental Units 296,915.37 3,904.3 Due from Developers 9,608 67 8,319.57 Due from Other Funds 6,754.55 3,612.02 Connection Charges Receivable 30,708.39 Delinquent Taxes Receivable 5,320.24 3,271.43 Special Assessments Receivable 272,500.61 Accounts Receivable - Other 23,408.03 810.44 Fixed Assets - Net 2,724,857.46 _ Amount to be Provided by Future Tax Levies - Net 1,442,385.00 Total Assets $5.984,292.41 $311,807.38 S 54.742.00 LIABILITIES, RESERVES AND FUND BALANCE _ Liabilities: Accounts Payable $ 19,720.58 $ 16,080.21 Contracts Payable 39,803.35 14,707.65 — Salaries Payable 329.67 272.30 $ 42 . 4 3 Bonds Payable 1,624,000.00 Due to Developers 297 15 Due to Other Governmental Units 13,330.87 5,871.42 Due to Other Funds 6,754.55 1,651.52 Matured Interest Payable 12,050.00 _ Total Liabilities $1,716,286.17 $ 36,931.58 $ 1,693-95 Reserves and Contributions 1,805,981.08 6,121.43 Fund Balance: Retained Earnings 107,229.33 Unappropriated 1,001,845.27 179,649.37 10,548.05 _ Appropriated 131,605.00 89,105.00 42,500.00 Invested in General Fixed Assets 1,221,345.56 Total Liabilities, Reserves and Fund Balance $,984,292,41 $311,807.38 $ 4,742.00 STATEMENT 1 CAPITAL SPECIAL GENERAL PROJECT ENTERPRISE ASSESSMENT FIXED FUND FUND FUND ASSETS (UNAUDITED) $ (1,854.10) $ 91,032.29 $ 73,287.53 82,418.00 568,097.23 12,050.00 $ 80 ,5 6 3.90 $ 91,032 29 $ 653,434.76 171.54 293,011.05 1,289.10 3,142.53 3 2,048.81 272,500.61 22,597.59 1,503,511.90 $1,221,345.56 1,442,385.00 -i S 80,563.90 $1,910,152.83 $2.405.680.74 $1,221,345.56 $ 195.78 $ 927.27 $ 2,517.32 25,095.70 14.94 1,624,000.00 297.15 7,459.45 500.00 4,603.03 _ 12,050.00 $ 195.78 $ 8,901.66 $1,668,563.20 1,794,021.84 5,837.81 107,229.33 80,368.12 731,279.73 $1,221,345.56 $ 80,563.90 $1.910,152.83 $2,405,680.74 $1.221.345.56 '- 1 CITY OF OAK PARK HEIGHTS, MINNESOTA SCHEDULE 1-A INVESTMENT TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1977 BALANCE 1977 TRANSACTIONS BALANCE 12/31/76 PURCHASES SALES 12/31/77 GENERAL FUND $135,636.37 $ 368,473.95 $268,520.19 $235,590.13 SPECIAL REVENUE FUNDS: Revenue Sharing $ 23,944.79 $ 31,398.01 $ 55,342.80 CAPITAL PROJECT FUND: Lawcon Grant $ -0- $ 82,418.00 $ 82,418.00 SPECIAL ASSESSMENT FUNDS: G.O. Bonds of 1967 and 1968 $271,373.38 $ 372,817.73 $233,711.17 $410,479.94 $249,000 G.O. Bonds of 1976 -0- 145,061.83 145,061.83 $100,000 G.O. Bonds of 1977 -0- 12,555.46 12,555.46 Total Special Assessment Funds $271,373.38 $ 530,435.02 $233,711.17 $568,097.23 Total $430,954.54 $1,012,724.98 $502.231.36 $941.448.16 — 2 CITY OF OAK PARK HEIGHTS, MINNEtOTA SCHEDULE OF INTERFUND AUDIT ADJUSTMENTS DECEMBER 31, 1977 DUE TO DUE FROM Completed Construction G.O. Bonds of 1967 and 1868 G.O. Bonds of 1967 and 1968 G.O. Storm Sewer Improvement Bonds of�1971 General Revenue Sharing General $100,000 G.O. Bonds of 1977 G.O. Bonds of 1967 and 1968 G.O. Storm Sewer Improvement Bonds of 1971 $249 ,000 G.O. Bonds of 1976 _ Completed Construction General Water Operating Total Due from Other Funds — Total Due to Other Funds SCHEDULE 1 -B DUE FROM DUE TO OTHER OTHER FUNDS FUNDS EXPLANATION _ $ 598.00 $ 598.00 To reclassify special assessment prepayments collected by City. 460. oo 460.00 To reclassify special assessment prepayments collected by City. 1,651.52 1,651.52 To reclassify expenditures for parks chain link fencing project. 1,460.50 1,460.50 To reclassify Oren Avenue construction costs. 2,084.53 75.12 _. 123.80 1,885.61 To reclassify tax collections. _ 500.00 500.00 To reclassify insurance reimbursement for damage done to file cabinets. S 6,754.55 $ 6.754.55 3 CITY OF OAK PARK HEIGHTS, MINNESOTA CONSTRUCTION COSTS BY PROJECT FOR THE YEAR ENDED DECEMBER 31, 1977 LEGAL FISCAL — CONTRACTOR ENGINEERING EASEMENTS GENERAL FUND Olene Avenue Landscaping $ 2,460.00 $ 2,405.94 $ 160.00 1977 Street Seal Coat Project 27,709.65 3,101.46 Tennis Court Resurfacing 5,125 50 566.04 Total General Fund Construction in Progress $ 35,295.15, $ 6,073.44 $ 160.00 SPECIAL REVENUE FUNDS Revenue Sharing Parks Chain Link Fencing (Completed Construction Capitalized) $ 19,175.91 $ 2,067.18 CAPITAL PROJECTS FUND Lawcon Grant Park Improvements S 2.049.88 Capital Projects Fund Construction in Progress SPECIAL ASSESSMENT FUNDS $249,000 G.O. Bonds of 1976: Swager #6 Streets $ 41,818.06 $ 5,944.22 $ 75.00 $100,000 G.O. Bonds of 1977: 1977 Sewer and Water Extensions 101,733.37 13,003.66 1,355.00 Total Special Assessment Funds $143,551.43 $ 18.947.88 $ 1.430.00 Less: Completed Construction Capitalized Special Assessment Funds - Construction in Progress SCHEDULE 1-C TOTAL PRIOR CURRENT LIABILITIES OTHERS COSTS YEARS YEAR 12/31/77 $ 5,025.94 $ 2,512.14 $ 2,513.80 $ 52.54 30,863.65 22,252.73 8,610.92 90.30 5,781.84 656.34 5,125.50 $ 142.84 $ 41.671.43, $ 25.421.21 $ 16.250.22 $ 51.84 $ 21.294.9.E $ 19.643.41 $ 1.651.52 $ 2,049.88 $ 1.854.10 $ 195.78 $ 2.049.88 $ 88.56 $ 47,925.84° $ 26,082.26 $ 21,843.58 322.68 116,414.71 87,341.19 $ 29,073.52 $ 411.24 $164,340.55 $ 26,082.26 $109.184.71 $ 29.073.52 47,925-84* $116.414.71 4 CITY OF OAK PARK HEIGHTS, MINNESOTA SCHEDULE OF BONDS PAYABLE _ FOR THE YEAR ENDED DECEMBER 31, 1977 BOND ISSUE DATE OF ISSUES INTEREST RATES General Obligation Improvement Bonds of 1967 September 1, 1967 4.5, 4.6, 4.7 General Obligation Water and Sanitary Sewer Improvement Bonds of 1968 March 1, 1968 4.8, 5.0 General Obligation Storm Sewer Improvement Bonds of 1971 May 1, 1971 .5.4, 5.5, 5.6, 5.7 $249,000 General Obligation Bonds of 1976 October 1, 1976 4.0, 4.2, 4.4, 4.6, 4.8, 5.0, 5.1, 5.2, 5.3 $100,000 General Obligation Improvement Bonds of 1977 November 1, 1977 4.5 Totals - Note 3 SCHEDULE 1 -D BONDS BON DS PRIOR PERIOD PAYABLE CURRENT PERIOD PAYABLE ISSUED RETIRED 12/31/76 ISSUED RETIRED 12/31/77 $ 825,000.00 $110,000.00 $ 715,000.00 $ 30,000.00 $ 685,000.00 4go,000.00 30,000.00 46o,000,00 10,000.00 450,000.00 173,000.00 23,000.00 150,000.00 10,000.00 )40,000.00 249,000.00 249,000.00 249,000.00 $100,000.00 100,000.00 1! - , 7.37.000.00 $163.000.00 $1,574,000.00 $100,000.00 $ 50,000.00 $1,624,000.00 5 CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED CONDENSED STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS - ALL FUNDS FOR THE YEAR ENDED DECEMBER 3 1977 -- CLERK'S RECEIPTS _ BALANCE .� FUND 12/31/76 REVENUE TRANSFERS IN General Fund $133,179.14 $347,835.37 $ 921.60 Special Revenue Funds 10,577.83 36,678.42 21,450.17 Capital Project Fund -0- 82,418.00 Enterprise Funds 86,331.99 110,928.33 202.93 Special Assessment Funds 187,448.84 404,604.15 54,729.96 Totals - Note 2 X 417,537.80 $982.464.27 $ $ 77, 304.66 _ STATEMENT 2 CLERK'S _ DISBURSEMENTS BALANCE SALE OF TRANSFERS PURCHASE OF (OVERDRAFT) INVESTMENTS TOTAL EXPENDITURES OUT INVESTMENTS 12/31/77 $268,520.19 $ 750,456.30 $304,445.40 $ 21,450.17 $ 368,473.95 $ 56,086.78 68,706.42 37,909.21 31,398.01 (600.80) 82,418.00 1,854.10 82,418.00 (1,854.10) 197,463.25 92,928.03 13,502.93 91,032.29 233,711.17 880,494.12 234,420.01 42,351.56 530,435.02 73,287.53 5502.231.36 $1,979,538.09 ,_ 6Z1,556.75 $ 77,304 $1,012.724.98 $217,951.70 6 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 3 GENERAL FUND — BALANCE SHEET DECEMBER 31, 1977 _ ASSETS Cash: Clerk's Balance $ 56,086.78 Investments - At Cost 235,590.13 Change Fund 50.00 Total Cash $291,726.91 ._ Due from County 162.69 Due from Other Governmental Units 3,904.32 Due from Developers 8,319.57 Due from Other Funds 3,612.02 ... Delinquent Taxes Receivable 3,271.43 Accounts Receivable - Other 810.44 "- Total Assets $311.807.38 _ LIABILITIES, RESERVES AND FUND BALANCE Liabilities: Accounts Payable $ 16,080.21 Contracts Payable 14,707.65 Salaries Payable 272.30 Due to Other Governmental Units 5,871.42 Total Liabilities $ 36,931.58 Reserves: Change Fund $ 50.00 Delinquent Taxes Receivable 3,271.43 Annexation Deposit 2,800.00 Total Reserves 6,121.43 Fund Balance: Unappropriated $179,649.37 Appropriated 89,105.00 Total Fund Balance 268,754.37 Total Liabilities, Reserves and Fund Balance $311,807.38 7 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 4 GENERAL FUND STATEMENT OF CHANGES IN FUND BALANCE FOR THE YEAR ENDED DECEMBER 31, 1977 FUND BALANCE - December 31, 1976 $239,502.79 ADDITIONS: Revenue: General Property Taxes $190,949.70 -- Local Government Aid 77,386.06 Interest on Investments 9,953.76 Reimbursement from Revenue Sharing Fund for Parks Chain Link Fencing Project 1,405.49 Other 42,027.52 Total Additions 321,722.53 Total $561,225.32 DEDUCTIONS: Expendi to res: Current Expense $248,461.58 Capital Outlay 2,337.94 Construction Costs: Olene Avenue Landscaping 5,025.94 1977 Street Seal Coat Project 30,863.65 Tennis Court Resurfacing 5,781.84 Total Deductions 292,470.95 FUND BALANCE - December 31, 1977 $268,754.37 NOTE: At December 31, 1977, the City Council had appropriated $89,105.00 of the above —' Fund Balance as follows: Lawcon Grant Matching Funds $ 55,000.00 .-. 1978 Operations 19,105.00 Future Building Expansion 15,000.00 Total $ 89.105.00 8 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 5 GENERAL FUND SUMMARY STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS FOR THE YEAR ENDED DECEMBER 31, 1977 CASH - CLERK'S BALANCE - December 31, 1976 $133,179.14 RECEIPTS: Revenue - Schedule 5 -A $318,571.45 Collections and Withholding for Other Governmental Units 29,263.92 Transfers In 921.60 Sale of Investments 268,520.19 Total Receipts 617,277.16 Total $750,456.30 DI SBURSEMENTS: Expenditures - Schedule 5-13 $275,160.91 Remittances to Other Governmental Units 29,284.49 Transfers Out 21,450 Purchase of Investments 368,473.95 Total Disbursements 694,369.52 CASH - CLERK'S BALANCE - December 31, 1977 $ 56.086.78 9 CITY OF OAK PARK HEIGHTS, MINNtSOTA SCHEDULE 5-A GENERAL FUND STATEMENT OF REVENUE RECEIPTED COMPARED TO BUDGET FOR THE YEAR ENDED DECEMBER 31; 1977 OVER (UNDER) ACTUAL BUDGETED BUDGET REVENUE: General Property Taxes: Current and Delinquent $182,984.80 Other 1,731.40 Licenses: Dog 739.00 Cigarette 204.00 Contractor Registration 700.00 Liquor 405.00 Tavern and Sunday 2,420.00 Amusement 200.00 Permits: Building 2,386.75 Plumbing and Heating 1,679. Fines and Forfeits 2,793.5 Interest on Investments 9,953.76 Intergovernmental Revenue: Homestead Credit 7,969.08 Local Government Aid 77,386.06 C.E.T.A. 8,106.14 Machinery Aid 179.45 Diseased Tree Removal Aid 2,759.09 Police Aid 4,831.13 Charges for Current Services: General Government 6,733.17 Dog Release Fee 143.32 ` Recreation 92.53 Other: Insurance Policy Adjustments 2 Insurance Recoveries 789.40 Refunds and Reimbursements 479.72 Donations 200.00 r Sale of Police Cars 427.00 Total Revenue Receipted $318,571.45 $270,395.00 S 48.176.45 r 10 r CITY OF OAK PARK HEIGHTS, MINNESOTA SCHEDULE 5 -B GENERAL FUND STATEMENT OF EXPENDITURES DISBURSED COMPARED TO BUDGET FOR THE YEAR ENDED DECEMBER 31, 1977 OVER (UNDER) EXPENDITURES: ACTUAL BUDGETED BUDGET — General Government: Mayor and Council: Current Expense $ 46,912.09 $ 42,600.00 $ 4,312.09 City Clerk: Current Expense 14,958.25 15,000.00 (41.75) Capital Outlay 135.58 4,000.00 (3,864.42) Planning and Zoning: Current Expense 10,387.09 5,000.00 5,387.09 City Hall and Building: Current Expense 3,810.62 5,750.00 (1,939.38) Public Safety: Police Department: -- Current Expense 92,765.52 100,000.00 (7,234.48) Capital Outlay 1,350.66 1,350.66 Fire Protection: Current Expense 1,505.00 10,000.00 (8,495.00) Protective Inspection: Current Expense 3,712.24 3,700.00 12.24 Highways: Streets and Alleys: Current Expense 3,170.61 9,000.00 Snow and Ice Removal: (5, 82 9.39) Current Expense 5,983.00 12,000.00 (6,017.00) Street Lighting: Current Expense 13,450.51 15,000.00 (1,549.49) Arborist: Current Expense 1,370.00 2,600.00 (1,230.00) Sanitation and Waste Removal: Refuse Collection and Disposal: Current Expense 18,949.80 15,000.00 3,949.80 Tree Removal and Planting: Current Expense 7,457.00 11,000.00 Recreation: (3,543.00) Parks, Playgrounds and Rinks: Current Expense 21,380.20 24,000.00 (2,619.80) Capital Outlay 730.00 730.00 Refunds and Reimbursements 5.00 5.00 Construction Costs 27,127.74 15,000.00 12,127.74 Total Expenditures Disbursed $275.160.91 $289.650.00 $(14.489.09,) r r CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 6 SPECIAL REVENUE FUNDS BALANCE SHEET DECEMBER 31, 1977 ANTI - RECESSION REVENUE FISCAL ASSETS TOTAL SHARING ASSISTANCE Cash: Clerk's Balance (Overdraft) $ ( 600.80) $ (600.80) Investments - At Cost 55,342.80 $ 55,342.80 Total Assets $ 54.742.00 $ 55, 342.80 $ (600.80) LIABILITIES AND FUND BALANCE Liabilities: Salaries Payable $ 42.43 $ 42.43 Due to Other Funds 1,651.52 $ 1,651.52 Total Liabilities $ 1,693.95 $ 1,651.52 $ 42.43 _. Fund Balance (Deficit): Unappropriated $ 10,548.05 $ 11,191.28 $ (643.23) Appropriated 42,500.00 42,500.00 Total Fund Balance (Deficit) $ 53,048.05 $ 53,691.28 $ (643.23) Total Liabilities and Fund Balance $ 54.742.00 $ 55,342.80 $ (600.80) r ` 12 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 7 SPECIAL REVENUE FUNDS STATEMENT OF CHANGES IN FUND BALANCE .r FOR THE YEAR ENDED DECEMBER 31, 1977 .— ANTI- RECESSION REVENUE FISCAL TOTAL SHARING ASSISTANCE FUND BALANCE - December 31, 1976 $ 55,240.29 $ 53,651.79 $ 1,588.50 ADDITIONS: Revenue: Federal Entitlements $ 35,352.00 $ 33,256.00 $ 2,096.00 ,., Interest on Investments 1,326.42 1,326.42 Total Additions $ 36,678.42 $ 34,582.42 $ 2,096.00 Total $ 91,918.71 $ 88,234.21 $ 3,684.50 DEDUCTIONS: Expenditures: Personal Services $ 4,327.73 $ 4,327.73 Contractural Services 3,498.00 $ 3,498.00 Capital Outlay - Police 9 , 750 -00 9,750,00 Construction Costs 21,294.93 21,294.93 Total Deductions $ 38,870.66 $.34,542.93 $ 4,327.73 FUND BALANCE (DEFICIT) - December 31, 1977 $ 53.048.05 $ 53,691.28 $ (643.23) -� NOTE: At December 31, 1977, the City Council had appropriated $42,500.00 of the Revenue Sharing Fund Balance. 13 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT '8 REVENUE SHARING SPECIAL REVENUE FUND STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS COMPARED TO BUDGET FOR THE YEAR ENDED DECEMBER 31, 1977 OVER -- (UNDER) ACTUAL BUDGETED BUDGET y CASH - CLERK'S BALANCE - December 31, 1976 $ 8,256.83 RECEIPTS: -' Revenue: Federal Entitlements $ 33,256.00 $ -0- $ 33,256.00 Interest on Investments 1,326.42 -0- 1,326.42 Total Revenue $ 34,582.42 $ -0- S 34.582.42 Transfers In 21,450.17 Total Receipts $ 56,032.59 Total $ 64,289.42 DISBURSEMENTS: -- Expenditures: Contractural Services $ 3,498.00 $ -0- $ 3,498.00 Capital Outlay - Police 9,750.00 -0- 9,750.00 Construction Costs 19,643.41 -0- 19,643.41 Total Expenditures $ 32,8,91.41 $ -0- $ 32.891.41 Purchase of Investments 31,398.01 Total Disbursements $ 64,289.42 CASH - CLERK'S BALANCE (OVERDRAFT) - December 31, 1977 S -0- NOTE: The Revenue Sharing Fund was not budgeted for in 1977. 14 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 9 ANTI-RECESSION FISCAL ASSISTANCE SPECIAL REVENUE FUND STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS COMPARED TO BUDGET FOR THE YEAR ENDED DECEMBER 31, 1977 '- OVER (UNDER) ACTUAL BUDGETED BUDGET -.. CASH - CLERK'S BALANCE - December 31, 1976 $ 2,321.00 RECEIPTS: Revenue: Federal Entitlements 2,096.00 $ ..0- $ 2.096.00 Total $ 4,417.00 DISBURSEMENTS: Expend tures: Personal Services 5,017.80 $ _O_ ,$ 5,017.80 CASH .. CLERK'S BALANCE December 31, 1977 $ (600.80) NOTE: The Anti - Recession Fiscal Assistance Fund was not budgeted for 1977. 15 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 10 LAWCON GRANT CAPITAL PROJECT FUND BALANCE SHEET DECEMBER 31, 1977 ASSETS Cash: Clerk's Balance (Overdraft) $ ( 1,854.10) Investments 82,418.00 Total Assets $ 80,563.90 LIABILITIES AND FUND BALANCE Liabilities: Accounts Payable $ 195.78 Fund Balance 80,368.12 Total Liabilities and Fund Balance $ 80.563.90 16 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 11 LAWCON GRANT CAPITAL PROJECT FUND STATEMENT OF CHANGES IN FUND BALANCE FOR THE YEAR ENDED DECEMBER 31, 1977 FUND BALANCE - December 31, 1976 $ - 0- ADDITIONS: Revenue: Grant Proceeds $ 80,000.00 Interest on Investments 2,418.00 82,418.00 Total $ 82,418.00 DEDUCTIONS: Expenditures: Construction Costs 2,049.88 FUND BALANCE - December 31, 1977 $ 80.368.12 17 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT_ 12 LAWCON GRANT CAPITAL PROJECT FUND STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS FOR THE YEAR ENDED DECEMBER 31, 1977 CASH - CLERK'S BALANCE - December 31, 1976 $ -0- RECEIPTS: Revenue: Grant Proceeds $ 80,000.00 Interest on Investments 2,418.00 Total Receipts 82,418.00 Total $ 82,418.00 DISBURSEMENTS: Expenditures: Construction Costs $ 1,854.10 Purchase of Investments 82,418.00 Total Disbursements 84,272.10 CASH - CLERK'S BALANCE (OVERDRAFT) - December 31, 1977 S (1,854.10) r 18 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 13 ENTERPRISE FUNDS BALANCE SHEET DECEMBER 31, 1977 WATER SEWER ASSETS TOTAL OPERATING OPERATING CURRENT ASSETS: Cash - Clerk's Balance $ 91,032.29 $ 43,338.97 $ 47,693.32 Accounts Receivable - General Customers 22,597.59 11,783.32 10,814.27 Total Current Assets $ 113,629.88 $ 55,122.29 $ 58,507.59 UTILITY PLANT IN SERVICE­ AT COST: Buildings and Structures $ 304,575.59 $304,575.59 Machinery and Equipment 50,775.20 47,130.92 $ 3,644.28 Distribution and Collection Systems 1,356,404.89 556,822.50 799,582.39 Totals $1,711,755.68 $908,529.01 $ 803,226.67 Less: Allowance for Depreciation 208,243.78 97,242.53 111,001.25 Net Fixed Assets $1,503,511.90 $811,286.48 $ 692,225.42 OTHER ASSETS: Due from Metropolitan Waste Control Commission $ 293,011.05 $ 293,011,05 Total Assets $1,910,152.83 $866.408.77 $1,043,744.06 LIABILITIES, RESERVES, CONTRI- BUTIONS AND RETAINED EARNINGS CURRENT LIABILITIES: Accounts Payable $ 927.27 $ 704.11 $ 223.16 _ Salaries Payable 14.94 14.94 Due to Other Funds 500,00 500.00 Due to Other Governmental Units 7,459.45 443.81 7,015.64 Total Liabilities $ 8,901.66 $ 1,647.92 $ 7,253.74 RESERVES AND CONTRIBUTIONS: Meter Deposits $ 33,093.24 $ 33,093.24 Metropolitan Waste Control Commission Credits 293,011.05 $ 293,011.05 Contributions from Special Assess- _ ment Funds - Net 1,467,917.55 777,464.30 690,453.25 Total Reserves and Contributions $1,794,021.84 $810,557.54 $ 983,464,30 -' RETAINED EARNINGS $ 107,229.33 $ 54,203.31 $ 53,026.02 Total Liabilities, Reserves, Contributions and Retained Earnings $1,910,152.83 $866,408.ZZ $1,043,744.06 19 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 14 ENTERPRISE FUNDS STATEMENT OF CHANGES IN RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1977 WATER SEWER TOTAL OPERATING OPERATING UNAPPROPRIATED FUND BALANCE - December 31, 1976 $ 49,270.38 $ 12,826.27 $ 36,444.11 ADJUSTMENT: Reclassification of Fund Balance Invested in Fixed Assets and Net Fixed Assets Contributed by Special Assessment Funds - Net 36,153.70 33,798.63 2,355.07 RETAINED EARNINGS - January 1, 1977 $ 85,424.08 $ 46,624.90 $ 38,799.18 ADDITIONS: Net Income - Statement 15 21,805.25 7,578.41 14,226.84 RETAINED EARNINGS - December 31, 1977 $107,229.33 $ 54,203.31 ,53.026.02 20 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 1.5 ENTERPRISE FUNDS _ STATEMENT OF INCOME AND EXPENSE FOR THE YEAR ENDED DECEMBER 31, 1977 WATER SEWER TOTAL OPERATING OPERATING INCOME: Operating Income: Customer Billings $ 77,346.70 $ 41,182.05 $ 36,164.65 -- Other Income: Plumbing Permits 616.00 304.00 312.00 Penalties 1,258.17 620.23 637.94 Refunds and Reimbursements 1,663.12 770.66 892.46 Sewer Availability Service Charge 149.75 149.75 Total Income $ 81,033.74 $ 42,876.94 $ 38,156.80 EXPENSES: Operating: Salaries $ 9,491.02 $ 9,240.08 $ 250.94 -- Personal Services 534.50 534.50 - 0 - Materials and Supplies 1,774.85 1,170.47 604.38 Fixed Charges 67.00 37.00 30.00 Contractual Services 44,088.33 21,626.59 22,461.74 Total Operating Expenses $ 55,955.70 $ 32,608.64 $ 23,347.06 OPERATING INCOME BEFORE DEPRECIATION $ 25,078.04 $ 10,268.30 $ 14,809.74 DEPRECIATION: On Assets Acquired from Own Funds (3,272.79) (2,689.89) (582.90) On Assets Acquired from Contributed Assets (33,219.61) (17,227.96) (15,991.65) NET INCOME (LOSS) $(11,414.36) $ (9,649.55) $ (1,764.81) ADD: Credit Arising from Transfer of Depreciation to Contributions from Special Assessment Funds 33,219.61 17,227.96 15,991.65 -- NET INCOME TRANSFERRED TO RETAINED EARNINGS S 21.805.25 S 7.578.41 S 14.226.84 21 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 16 -- ENTERPRISE FUNDS STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE YEARS ENDED DECEMBER 31, 1977 WORKING CAPITAL WAS PROVIDED BY: Operations: Net Income (Loss) - Statement 15 $(11,414.36) Add: Depreciation - An Expense not Requiring Working Capital 36,492.40 Total Working Capital Provided by Operations $ 25,078.04 Increase in Reserve for Meter Deposits 1,958.82 Total Working Capital Provided $ 27,036.86 WORKING CAPITAL WAS APPLIED TO: Purchase of Fixed Assets 2,713.44 INCREASE IN WORKING CAPITAL $ 24.323.42 WORKING CAPITAL WAS AS FOLLOWS: DECEMBER 31, INCREASE 1977 1976 (DECREASE) ,,. CURRENT ASSETS Cash - Clerk's Balance $ 91,032.29 $ 86,331.99 $ 4,700.30 Due from Other Funds 202.93 (202.93) Accounts Receivable - General -' Customers 22,597.59 20,527.90 2,069.69 Total Current Assets $113,629.88 $107,062.82 $ 6,567.06 CURRENT LIABILITIES Accounts Payable $ 927.27 $ 2,386.76 $ (1,459.49) Accounts Payable - Other Funds 13,300,00 (13,300.00) Salaries Payable 14.94 14.94 Due to Other Funds 500.00 202.93 297.07 Due to Other Governmental Units 7,459.45 10,768.33 (3,308.88) Total Current Liabilities $ 8,901.66 $ 26,658.02 $(17,756.36) WORKING CAPITAL $104.728.22 $ 80.404.80 $ 24, 323.42 22 CITY OF OAK PARK HEIGHTS, MINNESOTA SPECIAL ASSESSMENT FUNDS BALANCE SHEET DECEMBER 31, 1977 G.O. BONDS r OF 1967 ASSETS TOTAL AND 1968 Cash: Clerk's Balance (Overdraft) $ 73,287.53 $ 15,104.49 Investments - At Cost 568,097.23 410,479.94 With Paying Agents 12,050.00 Total Cash (Overdraft) $ 653,434.76 $ 425,584.43 Due from County 1 7 1 .5 4 1 5 8 .7 1 r Due from Other Funds 3,142.53 2,544.53 Due from Developers 1,289.10 Connection Charges Receivable 30,708.39 15,958.39 Special Assessments Receivable: Delinquent 4,360.67 2,745.40 Deferred 268,139.94 165,307.76 Delinquent Taxes Receivable 2,048.81 1,835.78 r Amount to be Provided from Future Tax Levies - Net 1,442,385.00 1,235,285.00 r Total Assets $2,405.680.74 $1,849,420.00 LIABILITIES, RESERVES AND FUND BALANCE Liabilities: Bonds Payable $1,624,000.00 $1,135,000.00 _ Accounts Payable 2,517.32 Contracts Payable 25,095.70 Due to Other Funds 4,603.03 598.00 _ Due to Developers 297.15 Matured Interest Payable 12,050.00 Total Liabilities $1,668,563.20 $1,135,598.00 Reserves: Delinquent Taxes 2,048.81 1,835.78 Developers' Deposits 3,789.00 Fund Balance (Deficit): Debt Service Accounts 635,694.31 711,986.22 Construction Accounts 95,585.42 r Total Liabilities, Reserves and Fund Balance $2.405,680.74 $1.849,420.00 r STATEMENT 17 G. 0. STORM _ SEWER IMPROVEMENT $249,000 $100,000 BONDS G.O. BONDS G.O. BONDS CONSOLIDATED OF 1971 OF 1976 OF 1977 CONSTRUCTION $ 19,788.34 $ 20,156.21 $ 29,284.31 $(11,045.82) 145,061.83 12,555.46 520.00 11,530.00 $ 20,308.34 $176,748.04 $ 41,839.77 $(11,045.82) 8.55 4.28 598.00 502.50 545.00 241.60 14,750.00 104.27 1,511.00 1,748.72 45,169.44 55,914.02 137.95 75.08 146,300.00 60,800.00 $168.6oZ.8 $284,810.34 $ 42,384.77 $ 60,457.80 $140,000.00 $249,000.00 $100,000.00 2,517.32 25,095.70 . 535.12 123.80 1,460.50 $ 1,885.61 '- 297.15 520.00 11,530,00 $141,055.12 $260,653.80 $129,073.52 $ 2,182.76 137.95 75.08 3,789.00 27,41 4.76 (8,206.67) (95,500.00) r' 32,288.13 5,022.25 58,275.04 — $168,607.83 $284,810.34 S 42,384.77 $ 60,457.80 23 CITY OF OAK PARK HEIGHTS, MINNESOTA SPECIAL ASSESSMENT FUNDS STATEMENT OF CHANGES IN FUND BALANCE FOR THE YEAR ENDED DECEMBER 31, 1976 G. 0. BONDS OF 1967 TOTAL AND 1968 FUND BALANCE - December 31, 1976 $ 804,427.55 $730,511.57 ADDITIONS: Revenue: Interest on Assessments $ 27,515.63 $ 12,164.97 Interest on Investments 19,478.54 17,888.86 Interest on Penalties and Connection Charges 1,706.82 1,706.82 Connection Charges 13,488.00 2,988.00 Tax Collections in Excess of 95% 3,604.50 2,734,62 , New Assessments Adopted 49,107.78 Developers' Escrow Deposits 23,884.00 Proceeds from the Sale of Bonds 98,437.5 Total Revenue $ 237,222.77 $ 37,483.27 Transfers In 105,371.74 Total Additions $ 342,594.51 $ 37,483.27 Total $1,147,022.06 $767,994.84 DEDUCTIONS: Expenditures: Interest on Bonds $ 75,017.50 $ 55,845.00 Paying Agents' Charges 217,74 163.62 Construction Costs 135,135.35 Total Expenditures $ 210,370.59 $ 56,008.62 Increase in Bonds Payable 100,000.00 Transfers Out 105,371.74 - Total Deductions $ 415,742.33 $ 56,008.62 FUND BALANCE - December 31, 1977 $ 731,279.73 $711.986.22 - STATEMENT 18 PAGE 1 G. 0. STORM SEWER -� IMPROVEMENT SWAGER SWAGER BONDS NO. 2 SEWER NO. 3, 4 OF 1971 AND WATER AND 5 $ 34,262.71 $ 10,235.05 $ 17,697.40 $ 187.26 $ 662.40 $ 1,424.92 632.58 $ 819.84 $ 662.40 $ 1,424.92 $ 819.84 $ 662.40 $ 1,424.92 $ 35,082.55 $ 10,897.45 $ 19,122.32 $ 7,642.50 25.29 $ 7,667.79 $ 10,897.45 S 19,122.32 $ 7,667.79 $ 10,897.45 $ 19,122.32 S 27,414.76 S -0- S -0- 24 CITY OF OAK PARK HEIGHTS, MINNESOTA SPECIAL ASSESSMENT FUNDS STATEMENT OF CHANGES IN FUND BALANCE FOR THE YEAR ENDED DECEMBER 31, 1977 $249,000 G.O. PORT OF CONSTRUCTION SUNNYSIDE ACCOUNTS FUND BALANCE (DEFICIT) - December 31, 1976 $ 25,033 82 $ 51,008.77 ADDITIONS: Revenue: Interest on Assessments $ 3,221.45 Interest on Investments Connection Charges Tax Collections in Excess of 95% New Assessments Adopted Developers' Escrow Deposits , Proceeds from the Sale of Bonds Total Revenue $ 3,221.45 Transfers In 23,548.35 Total Additions $ 26,769.80 Total $ 51,803.62 $ 51,008.77 DEDUCTIONS: Expenditures: Interest on Bonds Paying Agents' Charges Construction Costs $ 18,720.64 Total Expenditures $ 18,720.64 Increase in Bonds Payable Transfers Out $ 51,803.62 Total Deductions $ 51,803.62 $ 18,720.64 FUND BALANCE (DEFICIT) - December 31, 1977 $ -0- $ 32.288.13 STATEMENT 18 PAGE 2 _-- BONDS OF 1976 $100,000 G.O. BONDS OF 1977 DEBT SERVICE CONSTRUCTION DEBT SERVICE CONSOLIDATED ACCOUNTS ACCOUNTS ACCOUNTS CONSTRUCTION $ (64,321.77) $ -0- $ -0- $ -D- $ 9,854.63 1,574.22 $ 15.46 -- 6,900.00 3,600.00 237.30 49,107.78 23,884.00 93,937.50 $ 4,500.00 $ 67,673.93 $121,436.96 $ 4,500.00 $ 81,823.39 $ 67,673.93 $121,436.96 $ 4,500.00 $ 81,823.39 $ 3,352.16 $121,436.96 $ 4,500.00 $ 81,823.39 $ 11,53 28.83 $116,414.71 $ 11,558.83 $116,414.71 '- $100,000.00 $ 23,548.35 $ 11,558.83 $116,414.71 $100,000.00 $ 23,548.35 S (8.206.67) S 5.022.25 S(95.500.00) S 58.275.04 25 CITY OF OAK PARK HEIGHTS, MINNESOTA SPECIAL ASSESSMENT FUNDS STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS FOR THE YEAR ENDED DECEMBER 31, 1977 G.O. BONDS OF 1 967 TOTAL AND 1968 CASH - CLERK'S BALANCE (OVERDRAFT) December 31, 1976 $187,448.84 $126,090.48 RECEIPTS: Revenue: General Property Taxes $ 78,944.97 $ 63,831.07 Special Assessments: ' Collected by County 62,747.94 26,019.79 Collected by City 100,075.30 11,075.06 Connection Charges 16,024.18 5,524.18 Interest on Investments 19,478.54 17,888.86 Interest and Penalties on Connection Charges 1,706.82 1,706.82 Interest on Prepaid Assessments 60.90 Proceeds from the Sale of Bonds 98,437.50 Developers' Escrow Deposits 27,128.00 Total Revenue $404,604.15 $126,045.78 Transfers In 54,729.96 Sale of Investments 233,711.17 233,711.17 Total Receipts $693,045.28 $359,756.95 Total $880,494.12 $485,847.43 DI SBURSEMENTS: Expenditures: Debt Retirement: Principal $ 50,000.00 $ 40,000.00 Interest 75,017.50 55,845.00 Paying Agents' Charges 217.74 163.62 Construction Costs 109,184.77 Total Expenditures $234,420.01 $ 96,008.62 Transfers Out .42,351-56 1,916.59 Purchase of Investments 530,435.02 372,817.73 _ Total Disbursements $807,206.59 $470,742.94 CASH -• CLERK'S BALANCE (OVERDRAFT) December 31, 1977 $ 73,287.5 15.104.49 STATEMENT 19 PAGE 1 G.O. STORM SEWER IMPROVEMENT SWAGER SWAGER BONDS NO. 2 SEWER NO. 3, 4 OF 1971 AND WATER AND 5 $ 26,053.98 $ 1,722.08 $(12,131.63) $ 10,130.88 435.72 $ 1,478.93 $ 2,877.80 815.96 1,242.00 3,262.52 $ 11,382.56 $ 2,720.93 $ 6,140.32 159.90 289.02 14,025.40 $ 11,542.46 $ 3,009.95 $ 20,165.72 $ 37,596.44 $ 4,732.03 $ 8,034.09 $ 10,000.00 7,642.50 25.29 $ 17,667.79 140.31 $ 4,732.03 $ 8,034.09 $ 17,808.10 $ 4,732.03 $ 8,034.09 $ 19.788.34 $ -0- S -0- 26 CITY OF OAK PARK HEIGHTS, MINNESOTA SPECIAL ASSESSMENT FUNDS STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS FOR THE YEAR ENDED DECEMBER 31, 1977 $249,000 PORT OF G. 0. BONDS SUNNYSIDE OF 1976 CASH - CLERK'S BALANCE (OVERDRAFT) - December 31, 1976 $(31,130.51) $ 79,903.03 RECEIPTS: Revenue: General Property Taxes $ 4,983.02 Special Assessments: Collected by County $ 6,677.59 25,258.11 Collected by City 83,679.76 Connection Charges 6,900.00 Interest on Investments 1,574.22 Interest on Prepaid Assessments 60.90 Proceeds from the Sale of Bonds _ Developers' Escrow Deposits Total Revenue $ 6,677.59 $122,456.01 Transfers In 24,694.52 Total Receipts $ 31,372.11 $122,456.01 Total $ 241.60 $202,359.04 DISBURSEMENTS: Expenditures: Debt Retirement: _ Interest $ 11,530.00 Paying Agents' Charges 28.83 Construction Costs 21,843.58 Total Expenditures $ 33,402.41 Transfers Out $ 241.60 3,738.59 Purchases of Investments 145,061.83 Total Disbursements $ 241.60 $182,202.83 CASH - CLERK'S BALANCE (OVERDRAFT) December 31, 1977 $ -0- $ 20.156.21 STATEMENT 19 PAGE 2 BEAU DET PELLAR ADDITION AVENUE $100,000 SEWER AND SEWER G. 0. BONDS CONSOLIDATED WATER AND WATER OF 1977 CONSTRUCTION $ (2,407.00) $ (651.59) $ - 0 - $ - 0 - $ 3,600.00 15.46 _ 9831437.50 27,128.00 $129,180.96 $ 2,407.00 $ 651.59 $ 12,502.53 $ 2,407.00 $ 651.59 $129,180.96 $ 12,502.53 $ -0- $ -0- $129,180.96 $ 12,502.53 $ 87,3 $ 87,341.19 $ 23,548.35 12,555.46 $ 99,896.65 $ 23,548.35 S -0- $ -0- S 29.284.31 $(11.045.82) _ 27 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 20 STATEMENT OF GENERAL FIXED ASSETS -- DECEMBER 31, 1977 (UNAUDITED) CONSTRUCTION GENERAL WORK IN FIXED TOTAL PROGRESS ASSETS Land $ 75,000.00 $ 75,000.00 Buildings and Structures 94,931.33 94,931.33 —" Machinery and Equipment 46,237.38 46,237.38 Furniture and Fixtures 6,465.55 6,465.55 Other Improvements 998,711.30 $160,136.02 838,575.28 Total $1,221,345.56 $160.136.02 $1,061,209.54 28 CITY OF OAK PARK HEIGHTS, MINNESOTA FOOTNOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1977 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the City of Oak Park Heights conform to general- ly accepted accounting principles as applicable to governmental units except for the Statements of Cash Receipts and Disbursements which are presented on the cash basis and, therefore, do not reflect the results of operations as they would appear had they been presented on the accrual or modified accrual basis. The following is a summary of the significant accounting policies. BASES OF ACCOUNTING - The accrual basis of accounting (except as noted above) is followed (with minor exceptions) by all funds other than the General Fund and Special Revenue Funds which utilize the modified accrual basis of accounting. Modifications to the accrual basis are as follows: 1. Revenues are recorded as received in cash except for (a) revenues susceptible to an accrual and (b) material revenues that are not received at the normal time of receipt. 2. Expenditures are recorded on the accrual basis except for (a) disbursements for inventory type items which are considered expenditures at the time of purchase, (b) prepaid expenses which are not recorded, and (c) interest on long -term debt which is not recorded until _ maturity. INVESTMENTS - Investments are stated at cost plus interest added, if any. INVENTORIES - The cost value of items of inventory has been recorded as an expenditure at the time items were purchased. ENTERPRISE FUND FIXED ASSETS- Enterprise Fund fixed assets are stated at cost, estimated cost or, in the case of gifts or contributions, at fair market value at the time received. Depreciation has been provided using the straight -line method. GENERAL FIXED ASSETS - General fixed assets are stated at cost, estimated _ cost, or, in the case of gifts or contributions, at fair market value at the time received. No depreciation has been provided on general fixed assets. — STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS - The accompanying Statements of Cash Receipts and Disbursements are presented on the cash basis. 29 CITY OF OAK PARK HEIGHTS, MINNESOTA FOOTNOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1977 NOTE 2 - The "Total" columns of the Combined Balance Sheet and Summary Statements of Cash Receipts and Disbursements is presented for informational purposes only. The reader is cautioned that these "Total" columns represent a combining of unlike purpose funds and cannot be construed to be indica- tive of the over -all financial position nor the over-all results of the cash transactions of the City. NOTE 3 - Debt service payments until maturity are shown in Exhibit 1 for the special r assessment bonds payable. 30 STATEMENT OF AUDITOR'S RESPONSIBILITY AS TO SUPPLEMENTAL DATA The audited financial statements of the City are presented in the preceding section of this report. The following supplementary data is submitted for analy- tical purposes only, and is not considered essential for a fair presentation of the financial position and results of operations. This information was derived from the accounting and other records and was tested only to the extent necessary under the usual auditing procedures followed in the examination of the financial statements and in our opinion is fairly presented in all material respects in relation to financial statements taken as a whole. CITY OF OAK PARK HEIGHTS, MINNESOTA EXHIBIT 1 SCHEDULE OF DEBT SERVICE PAYMENTS UNTIL MATURITY DECEMBER 31, 1977 (CENTS OMITTED) G.O. STORM SEWER $100,000 G.O. BONDS IMPROVEMENT $249,000 IMPROVEMENT OF 1967 BONDS OF G.O. BONDS BONDS TOTAL AND 1968 1971 OF 1976 OF 1977 Bonds Payable $1,624,000 $1,135,000 $140,000 $249,000 $100,000 Future Interest Payable 749,935 624,640 54,035 53,260 18,000 Totals $2,373,935 $1.759.640 $194,035 $302,260 $118,000 Year of Maturity: 1978 $ 161,245 $ 94,015 $ 17,200 $ 45,530 $ 4,500 1979 178,595 92,185 16,740 45,170 24,500 1980 183,915 100,355 16,260 43,700 23,600 1981 178,665 98,045 15,760 42,160 22,700 1982 173,335 95,735 15,250 40,550 21,800 1983 147,885 93,385 14,730 18,870 20,900 1984 128,355 91,035 14,200 23,120 1985 124,415 88,655 13,660 22,100 1986 125,450 91,275 13,115 21,060 1987 101,225 88,665 12,560 1988 98,050 86,055 11,995 1989 99,870 88,445 11,425 1990 96,440 85,585 10,855 1991 92,975 82,690 10,285 1992 79,795 79,795 1993 81,900 81,900 1994 78,770 78,770 1995 75,640 75,640 - 1996 72,510 72,510 1997 69,380 69,380 1998 25,520 25,520 Totals $2,373,935 $1.759,640 $194.035 $302.260 $118.000 r r 31 CITY OF OAK PARK HEIGHTS, MINNESOTA EXHIBIT 2 SECURITY FOR DEPOSITS DECEMBER 31, 1977 (CENTS OMITTED) '— State Bonds $ 50,000 Federal Securities 1,250,000 Total $1.300.000 ASSIGNED BY ON DEPOSIT WITH AMOUNT Cosmopolitan State Bank of Northwestern National Bank Stillwater of Minneapolis $ 350,000 First National Bank of First National Bank of Stillwater Minneapolis 100,000 First State Bank of Bayport First National Bank of St. Paul 100,000 Oak Park Heights State Bank American National Bank 750,000 Total $1.300.000 32 CITY OF OAK PARK HEIGHTS, MINNESOTA EXHIBIT 3 INSURANCE IN FORCE DECEMBER 31, 1977 (CENTS OMITTED) COVERAGE AMOUNT UMBRELLA LIABILITY $ 5,000,000 PROPERTY AND GENERAL LIABILITY: Property (Scheduled Locations) 474,858 General Liability: Bodily Injury 500,000/500,000 — Property Damage 100,000 /100,000 Cont racturaI Liability: Bodily Injury 500,000 Property Damage 100,000 /100,000 Personal Injury 500,000 Host Liquor 500,000 Employee Dishonesty: Clerk- Treasurer 50,000 Deputy Clerk- Treasurer 50,000 Faithful Performance Blanket Bond 50,000 Counterfeit and Depositors Forgery 50,000 AUTOMOBILE FLEET, COMPREHENSIVE AND COLLISION (SCHEDULED _ VEHICLES): Liability: Bodily Injury 500,000 Property Damage 500,000 -- Uninsured Motorist 25,000 Physical Damage: Comprehensive A.C.V. ._ Collision ($250 Deductible) A.C.V. WORKMEN'S COMPENSATION Statutory PUBLIC OFFICIALS' ERRORS AND OMMISSIONS 100,000 /1,000,000 33 CITY OF OAK PARK HEIGHTS, MINNESOTA EXHIBIT 4 ORGANIZATION DECEMBER 31, 1977 TERM EXPIRES MAYOR: Donald Mondor 12/31/78 COUNCILMEN: John Groth 12/31/78 John Lang 12/31/78 Richard Seggelke 12/31/80 Robert Torgerson 12/31/80 CLERK-TREASURER: Ken Heuer Appointed 34 CITY OF OAK PARK HEIGHTS, MINNESOTA EXHIBIT 5 TAXABLE VALUATIONS, TAX LEVIES AND MILL RATES (CENTS OMITTED) TAXABLE VALUATIONS: Real Estate and Personal Property $32,968,402 531,7 19,432 $31,168,276 _ TAX LEVIES EXTENDED BY COUNTY: Year Extended 1977 1976 1975 Year Collectible 1978 1977 1976 Revenue $221,590 $192,691 $165,000 Bonds and Interest 80,877 79,734 75,300 Total $302,467 $272,425 $240,300 _ MILL RATES: Revenue 6.74 6.09 5.00 Bonds and Interest 2.46 2.52 2.00 Total 9.20 8.61 .0 35