HomeMy WebLinkAboutAnnual Financial Report CITY OF OAK PARK HEIGHTS, MINNESOTA
ANN UAL FINANCIAL REPORT
DECEMBER 31, 1978
CITY OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
ORGANIZATION
AUDITOR'S REPORT
AUDITOR'S COMMENTS AND RECOMMENDATIONS
COMBINED FINANCIAL STATEMENTS
CONDENSED COMBINED BALANCE SHEET - ALL FUND TYPES AND
ACCOUNT GROUPS Statement 1
CONDENSED COMBINED STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES Statement 2
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - GENERAL AND SPECIAL
REVENUE FUND TYPES Statement 3
COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN
RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES Statement 4
COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION -
ALL PROPRIETARY FUND TYPES Statement 5
COMBINED SCHEDULE OF INDEBTEDNESS Statement 6
F UND AND ACCOUNT GROUP STATEMENTS
GENERAL FUND
Balance Sheet Statement 7
Statement of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual Statement 8
S PECIAL REVENUE FUNDS
Combining Balance Sheet Statement
Combining Statement of Revenue, Expenditures and Changes in
F Statement 10
Fund Balance
Combining Statement of Revenue, Expenditures and Changes in
Fund Balance - Budget and Actual Statement 11
CAPITAL PROJ FUND
Combining Balance Sheet Statement 12
Combining Statement of Revenue, Expenditures, and Changes in
F Statement 13
Fund Balance
CITY OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
SPECIAL ASSESS FUNDS
Combining Balance Sheet Statement 14
Combining Statement of Revenue, Expenditures and Changes in
Fund Balance Statement 15
ENTERPRI SE FUNDS
Combining Balance Sheet Statement 16
Combining Statement of Revenue, Expenses and Changes in
Retained Earnings Statement 17
Combining Statement of Changes in Financial Position Statement 18
STATEMENT OF GENERAL FIXED ASSETS Statement 19
NOTES TO FINANCIAL STATEMENTS
S UPPLEMENTARY FINANCIAL INFORMATION
INTERFUND AUDIT ADJUSTMENT Exhibit 1
CONSTRUCTION COSTS -° BY PROJECT Exhibit 2
DEBT SERVICE PAYMENTS TO MATURITY:
Special Assessment Bonds Exhibit 3
SECURITIES FOR DEPOSIT Exhibit 4
INSURANCE IN FORCE Exhibit 5
TAXABLE VALUATIONS, TAX LEVIES AND MILL RATES Exhibit 6
CITY OF OAK PARK HEIGHTS, MINNESOTA
ORGANIZATION
DECEMBER 31, 1978
TERM
EXP IRES
MAYOR:
Donald Mondor 12/31/78
COUNCILMEN:
John Groth 12/31/78
John Lang 12/31/78
Richard Segge 1 ke 12/31/80
Robert Torgerson 12/31/80
CLERK - TREASURER:
Ken Heuer (Resigned Effective 12/31/78) Appointed
LaVonne Wilson (Appointed Effective 12/18/78) Appointed
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CITY OF OAK PARK HEIGHTS, MINNESOTA
AUDIT COMMENTS AND RECOMMENDATIONS
The City of Oak Park Heights maintains its financial accounting records on the
basis of cash receipts and disbursements and historically has reported its results
of operations on the cash basis. During 1978 the Minnesota State Legislature
made comprehensive changes in the reporting requirements for Minnesota Cities. The
effect of these changes were to require Minnesota cities to report their financial
activities in accordance with accrual and /or modified accrual accounting principles:
The financial statements presented in this report are presented in accordance
with the new reporting standards. All necessary adjustments to the City's cash
basis financial records have been made to conform to the new reporting requirements.
These changes or adjustments were made on audit worksheets only and not on the
financial records of the City. We recommend that the City convert its financial
records by recording the December 31 1978 balance sheet accounts as of January 1,
1979• Thereafter the City should record all adjustments (accruals and accrual
reversals) on its financial records on a monthly and /or annual basis. Once this
is accomplished, the City's internal accounting records will be a complete and
permanent record of the financial activities of the City.
CASH AND INVESTMEN
_ DECEMBER 31, INCREASE
DESCRIPTION ____ 1977 (DECREASE)
Clerk's Balance:
Checking Account $ 70,986 $ 217,952 $(146,966)
Investments and Savings 1,2.68,711 941,4tr8 327
With Paying Agents 482 12,050 (11 ,568)
Change Fund 50 ,, 50 -0 -
Total $ 1 3 i�O � 68, I2 ( �
�
City of Oak Park Heights
Comments, Page 2
The City substantially increased interest earnings in 1978 as the result of
two factors: 1) increased interest rates and 2) more efficient investment of
idle cash balances. We commend the City for its efforts in this area and recom-
mend that the City continue to strive - For maximum interest earnings.
S ECURITY FOR DEPOSITS
Security for deposits pledged by the City's depositories are presented in
Exhibit 4. Our analysis of collateral requirements and actual collateral pledged
indicate that all depositories had pledged sufficient collateral.
DUE FROM COUNTY
DECEMBER 31, INCREASE
_ DESCRIPTION 1978 1977 ~ ( DECREASE)
GENERAL FUND:
General Property Taxes $ 247 $ 163 $ 84
SPECIAL ASSESSMENT FUNDS:
General Property Taxes 60 67 (7)
Special Assessments 715 104 611
Total 1,022 — 33 _ 4 688
The above amounts represent collection by Washington County during November
and December. These amounts were remitted to the City with the April settlement.
DUE F ROM OTHER GOVERNMENTAL UNITS
DECEMBER 31, INCREASE
DESCRIPTION 1978 1977 (DECREASE)
C.E.T.A. Reimbursement $ 1,917 $ 3,827 $ (1,910)
Court Fines 70 77 (7)
Shade Tree Grant 8,113 -0- 8,113
M.W.C.C.:
Debt Payment Credit 267,449 280 (13,006)
Deferred Charges 11,138 11,659 (521)
Current Value Credit 858 897 (39)
Cost Allocation - 1977 3,954 °0- 3,954
Total 1 5 $ (3,416)
City of Oak Park Heights
Comments, Page 3
The C.E.T.A. reimbursements and court fines are current receivables which
were received by the City early the following year.
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 1979 through 2000. The Debt Payment Credits will be allowed in the
years 1979 through 1997 at reducing ;mounts per year. The current Value Credit
will be allowed in the years 1979 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 1978 the City received a partial refund of the deferred
charges totaling $521 plus interest of $410.
DUE F DEVELOPE
__ DECEMBER 3 INCREASE
DESCRIPTI _ 7978 _ 197 7 — DECREASE
General Fund:
Cost Reimbursement $ 10 ,298 $ 8,320 $ 1 ,978
Special Assessment Fund:
Swagers 7th Addition 39,326 w0- 39,326
62nd Street Improvement 22 ,866 -0- 22 ,866
Brekke Heights #2 330,750 -0- 330,750
Raymie Johnson Estates 113,234 w0- 113,23L�
Other 74 1, 289 (5 45)
Totals Z � . 218 � 9 _a0L6-
The above amounts represent "Escrow Agreement" balance plus other amounts
billed to developers for construction costs incurred and other costs incurred. The
substantial increases during 1978 were the result of costs incurred on construction
projects. The City collected approximately $230,000 of these amounts during January
through May of 1979 leaving a balance of approximately $285,000 at June 1, 1979
City of Oak Park Heights
Comments, Page �+
The remaining amounts are to be paid upon sales of property by the developers
or upon billing by the City. Additionally, several accounts have remained unpaid
for more than one year. We recommend that - the City establish improved records and
collection procedures on these accounts to insure proper and timely collection of
these accounts.
DUE FROM ( TO) O THER FUND
The Statement of Inter Audit Adjustments (Exhib.it 1) 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:
DUE FROM DUE TO
FUND DESCRIPT OTH FUNDS OTHER FUNDS
General Fund _ $ 9Lr, 301 .68
Special Revenue Funds:
Revenue Sharing 25,000,00
Capital Project Fund:
Lawcon Grant $ 80,000.00 56
Special Assessment:
Bonds of 1967 and 1968 61,810.07
Bonds of 1971 419.77
Bonds of 1976 8,038.03
Bonds of 1977 36,331.63 9,000.00
Bonds of 1978 56,649.12 42,60O.0o
Completed Construction 378.24
Totals 135L5 X15.6' 3_,
The above adjustments should be recorded on the City's financial records during
1979. Council action is required to effect these transfers. We recommend that the
above transfers be recorded as early as possible in 1979, so that the cash balances
will not be distorted.
C ONNECTION CHARGES RE CEIVABLE
Connection charges receivable represent sewer and water hook--up charges to
property owners, but not collected at December 31, 1978. The $28 balance at
City of Oak Park Heights,
Comments, Page 5
December 31 1978 represents a $2,263 decrease during 1978. We recommend that the
City continue to extend its collection procedures on these accounts to effect col-
lection and to assist in eliminating a cash overdraft of the new Consolidated
Construction Special Assessment Fund,
DELINQUENT TAXES RECEIV
Delinquent taxes receivable were $5,867 at December 31, 1978 representing a
$500 increase during 1978. These taxes (when collected) will be remitted to the
City with the regular tax settlements. Tax collection during 1978 amounted to
99% of taxes levied in 1977 for collection in 1978,
SPECIAL ASSESSM RE CEIVABLE
DEC 31, INCREASE
DESCR 1978 1977P (DE CREASE)
Delinquent $ 5,867 $ 4,361 $ 1,506
Deferred 295,213 268 ,140 27,773
Totals 0 1.7 8 0 52Z 12 9,?7 �
The increase in deferred assessments receivable at December 31, 1978 was
primarily the result of the adoption of a new assessment roll relating to the
Oren Avenue improvements.
City of Oak Park Heights
Comments, Page 6
FUND EQUITY
DECEMBER 31 , INCREASE
FUND GROU 1978 1 977 (DEC
Fund Balance:
General Fund $225,943 $268,805 $(42,862)
Special Revenue 74,996 53,048 21,948
Capital Project 86,857 1,393 85,464
Special Assessment:
Construction Accounts 281,0 95,585 185,442
Totals $668,823 $418,831 $249,992
Retained Earnings:
Water and Sewer Funds 1 41,273 107,229 34,044
Totals ,181 0 096 x, 526, 060 __L284 036
The above balances for December 31, 1977 have been restated to conform to the
new reporting requirements as described previously and to make these accounts com-
parable with the December 31, 1978 balances.
GENER FUND
The financial statements for the General Fund are presented in Statements 7
and 8. The balance of the General Fund was $225,943 at December 31, 1978, repre-
senting a $43,000 decrease during 1978 as follows:
1. Budgeted reduction $ (6,600)
2, Excess of actual revenue over budgeted
revenue 130,600
3, Excess of actual expenditures over
budgeted expenditures 50 300)
1978 REVENUE OVER EXPENDITURES $ 73,7
4, Transfers to Other Funds
Capital Improvement Fund $ 27,500
Lawcon Grant Fund 55,000
Special Assessment Fund 36 ,332 (118,832)
5. Other increases - net _ 2 , 1 3 2
Total Decrease �J�atoo91
City of Oak Park Heights
Comments, Page 7
The remaining fund balance of $225,943 at December 31, 1978 was partially
($59, 000 ) appropriated to finance the 1979 operating budget leaving an unappro-
priated balance of $166,943. This fund balance is adequate (but not excessive)
for the sound financial management of the City at December 31, 1978.
General Fund operating surpluses are required for two primary purposes:
1) EMERGENCY AND /OR UNANTICIPATED EXPENDITURES
The diverse nature of a City's operations are such that unforseen
events require financial flexability. Examples of such events would be natural
disasters, lawsuits, unexpected capital outlay requirements and timely pre-
liminary funding for vital improvements. The level of this surplus is a
policy decision which may be measured as a percent of the operating budget.
2) WORKING CAPITAL (CASH FLOW) REQUIREMENTS
The General Fund receives a substantial portion of its funding from
property 'tax revenue. For 1979, these revenues will total approximately
$230,000. This revenue source is used to finance the City's operations over
the entire calendar year. These monies; however, are not available to the City
until July and December of each year. Therefore, a minimum cash Flow surplus
is required just to maintain zero cash balances during June and November of
each year. The amount of this surplus for the City of Oak Park Heights would
total approximately $115,000.
S PECIAL REV FUND
The financial statements for the Special Revenue Funds are presented in State-
ments 9 through 11. The City maintained two Special Revenue Funds during 1978.
FEDERAL REVENUE SHARING
ANTI - RECESSION FISCAL ASSISTANCE
City of Oak. Park Heights
Comment Page 8
A summary of the Revenue Sharing transactions from inception (December, 1972)
through December 31 1978 is as follows:
PRIOR YEARS 19 TOTAL
REVENUE
Revenue Sharing Entitlement $167,483 $ 51,960 $219,443
Interest on Investments 2,752 3,896 6,648_
Total Revenue $170 $�5 8�6 226 0�1
EXPENDITURES
Park Land Aquisition $ 78 ,578 $ 78,578
Playground Equipment 1,673 $ 4 ,975 6,648
Land Easement 1,750 1,750
Police Vehicles 9,750 9,750
Park Fencing 21 ,295 21 ,295
Fire Protection 3,498 3,498
Youth Service Bureau 4,576 4,57
Valley View Park Improvements _ 25, ,000 25,000
Total Expenditures 116 � �44 L - 34, 5 5 51 $151
B ALANCE - December 31 1978 $ 7
APPROPRIATI
Valley View Park Improvements $ 40, 000
Trees 10,000
Motor Vehicle; 9,000
Recreation Equipment 9,65
Office Equipment 4 ,000 1 _ 12,65 0
UNA BAL ANCE - December 31 1978 _� 2
During 1977 and 1978, the City appropriated $25,000 and $40,000 of Revenue
Sharing monies towards its 50' / matching requirement on the Lawcon Grant for the
Valley View Park Improvements. The City had previously committed $55,000 of General
Fund monies for the same purpose. The committment of $65,000 of Revenue Sharing
monies toward this project would exceed 25% of total project cash and would require
the City to follow Federal rules and regulations in the performance of these construc-
tion contracts. These rules and regulations have not been followed.
City of Oak Park Heights
Comments, Page 9
We recommend that the City amend its 1979 Revenue Sharing Budget and appro-
priate - the $40,000 Valley View Park appropriation to another area. This will
require another series of public hearings to accomplish and effect.
The rules and regulations of the Federal Office of Revenue Sharing include
a requirement that the financial records of a City receiving $25,000 or more of
Revenue Sharing grants per year, 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. The City's regular audit satisfies the finan-
cial audit requirements. The "compliance audit" requires additional verification
and audit procedures not included in the regular audit. This special "compliance
audit" is required for the City of Oak Park Heights for 1978 or 1979. We recom-
mend that the City have this audit performed for 1978 to effect compliance with this
requirement.
The rules and regulations of the Federal Office of Revenue Sharing are sub-
ject to frequent change. We recommend 'that the City continue to monitor its
procedures to assure compliance with all Revenue Sharing rules and regulations.
CAPITA PR OJECT FU NDS
The financial statements for the Capital Project Funds are presented in State-
ments 12 and 13. The City had two Capital Project Funds at December 31, 1978.
CAP ITAL IMPR OVEMENTS
LAWCON GRAN P ARK I MPROVEMENTS
City o Oak Park Heights
Comments, Page 10
The Capital Improvements Fund was established in 1978 to account for monies
set aside for the following future capital improvements:
_ DESCRIPTION AMOUNT
Municipal. Building Expansion $ 15,000
Seal Coat and Curb 10,000
Recreation 2,500
Unallocated Interest Earnings 1,65
Total 2LJ_5_
The above amounts were fully invested at December 31, 1978 pending approval
of the above projects.
The Lawcon Grant Park Improvements Fund was established in 1977 to account
for monies set aside for various improvements to the Valley View Park, as follows:
F I NA_N NG PRO DED
v �State Grant - Lawcon $ 80,000
City Participation:
General Fund 55 ,000
Revenue Sharing 25,000
Interest Earnings 9,135
Total Financing $169,135
EXPENDITURES:
Road Construction $ 56,649
Capital Outlay 3,187
Professional Services 3,023 6 2,859
REMAINING BALANCE 106 276
The above balance is committed for additional improvements to the Valley
View Park. The State Grant in the amount of $80,000 was awarded to the City
subject to certain rules, regulations and reporting requirements of the State
Planning Agency. We recommend that the City continue to monitor its policy pro-
cedures to insure compliance with these rules, regulations and reporting require-
ments.
City of Oak Park Heights
Comments, Page 11
The financial sta'temen'ts for the Special Assessment Fund are presented in
Statements 14 and 15. A Special Assessment Fund is organized to account for both
the construction and financing of assessable improvement projects.
The accounting principles employed by the Special Assessment Fund .. Debt
Service Accounts are such that future interest on bonds payable is not reflected
in the Balnce Sheet until the year it becomes payable and future interest on
special assessments is not reflected until the year it becomes receivable. There-
fore, the financial position of these funds do not reflect future interest receivable
or payable. Scheduled future tax levies are not reflected as income until the year
of collection. In order to project the final fund surplus or shortage these three
items must be considered.
The nature of a Special Assessment - Debt Service Fund is such that it will
not reflect a fund deficit. In a fund which would reflect a deficit an "amount to
be provided'' is recorded to increase the fund equity to zero. This "amount to be
provided" is each funds' supplemental financing requirement This supplemental
financing primarily will consist of future tax levies (scheduled and /or unscheduled)
but can be realized through cash connection charges, future interest on investments,
permanent transfers - in and /or other City Council designated sources.
Presented herewith, are projected financial positions based on scheduled future
tax levies, future interest payable on bonds, and estimated future interest receiv-
able on deferred assessments. Interest on investments and cash connection charges
are not considered due to uncertainties involved. These projections have changed
from past years' projections in that the scheduled future tax levies are valued
at full amounts. Past projections value scheduled future tax levies at 95% of
full amount.
City of Oak Park Heights
Comments, Page 12
YEAR OF FUND SCHEDULED _ INTERES PROJECTED
DEBT FINAL POSITION FUTURE FUTURE w FUND
__S ERVICE ACCOUNT MATURITY 12/31/78 TAX LEVIES ASSESSME BONDS _ POS
G . 0 Bond s of 1967
— _.._..�__
and 1968 1998 $(415, $1,237,0 $ 97,000 $570, $348,119
Storm Sewer Bonds
of 1971 1991 (114,011) 142,000 800 46,835 (18,046)
G.O. Bonds of 1976:
Construction Account 1986 32,288 32,288
Debt Service Account (65,8 27) 59,000 9,000 41,730 (39,557)
G.O. Bonds of 1977:
Construction Account 1983 6,262 6,262
Debt Service Account -0° 21,000 13,500 7,500
G.O. Bonds of 1978
Construction Account 1984 178,501 $178,501
Debt Service Account -OM 44,000 (44,000)
Consolidated Construction 68,836 34, _ 98,836
Totals 13jj X 438 _ 161 �_7 0
Total Projected Surplus 5569,901
Normal Projected Surplus (5% of Unmatured
Bond Principal and Interest) , 122,835
G.O,_ BONDS_ OF 1967 AND 1968
The projected surplus in the amount of $348,119 at December 31, 1978 represents
an $85,000 increase during 1978 due to cash connection charges and interest on invest-
ments. This projected surplus equals approximately 20% of Future bond committment at
December 31 1978 indicating that the City may cancel a portion of the scheduled
Future tax levies on these issues without impairing the ability of this account to
meet all future bond committments.
The above surplus is generally the result of cash connection charges received
subsequent to the sale of these bonds. These cash connection charges were committed
to the reduction (or elimination, if possible) of the scheduled future tax levies,
This projected surplus may be used to finance the projected deficit of the Storm
Sewer Bonds of 1971, in addition to cancel future scheduled tax levies (see later
Comments).
City of Oak Park Heights
Comments, Page 13
STORM SEWER BONDS OF 19
The projected deficit in the amount of $18,046 represents a nominal increase
during 1978 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 alternatives 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
October 1979 to be collected in 1980 Additionally, the City may cancel $25,000/
$30,000 of the 1979/80 tax levy for the G.O. Bonds of 1967 and maintain an overalll
debt service tax levy which is consistent with existing scheduled debt service
levies (see previous Comments), Council action is required to effect the above,
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 ASSESSME __
IMPROVE PROCEEDS ^,NTICIPATED ACTUAL
Swager�� 6th Addition �~ $138 160 $ 1�+�900 _ $117,829
Baudet Addition and Peller Ave, 97 : 000 44,700 _ _ 32 , 577
Totals X235_,160 7191 600__ �_1 5_0,40 6
Actual construction costs totaled $203,000 rather 'than the expected $235 ,000
leaving a $32,000 balance in the construction account at December 31, 1978, This
C i ty of Oak Park He grits
Comments, Page 14
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 $39,557 at December 31,
1978 is the result of special assessments being less than anticipated and special
assessment prepayments 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). Council action
is required to effect the construction account closing and the related transfer to
the debt service account.
G.O BON 1 977
During 1977, the City issued special assessment bonds in the amount of $100,000
to finance various improvements. A summary of the financial activity of those improve-
ments and the related debt service is as follows:
FINA NCING PROV
Special Assessment and Billings
to Developers $246,770
Transfers from General Fund 38,273
Interest on Investments 2 ,272
Total Financing Provided $287,315
EXPE
Construction Costs $ 2 74,965
Bond Interest and Discount 6,063
Other ^ __ 25 _281,053
FUND BALANCE. - December 31, 1978
City of Oak Park Heights
Comments, Page 15
These projects were in process and should be completed in 1979. We recommend
thDtthe Construction Account be closed at December 31, 1979 (after payment of all
construction costs) and that any remaining balance (at December 31, 1979) be trans-
ferred to the debt service account. Council action is required to effect the
construction account closing and the related transfer to the debt service account.
The cash transfers from the General Fund represent amounts required to finance
costs not assessed or billed to developers, as follows:
___
DESCRIPTION AMOUNT
N.S.P. SLAG Disposal Basin $ 17,692
Brekke Park Improvement 18,651
Other 1 ,930
Total 35 ,271
The above cash transfers have been recorded as interfund audit adjustments
at December 31, 1978 - to reflect the intent of the City Council when these projects
were approved.
G .O. BON DS OF 1978
During 1978 t:he City issued two special assessment bond issues (in the amount
of $100,000 each) to finance various improvements. A summary of the financial
activity of these improvements and the related debt services, is as follows:
FINANC PRO DED
Special Assessment and Billings
to Developers:
Brekke Height #2 $348,425
Raymie Johnson Estates 113,234
Other �__ 9
Total Financing Provided $461,668
EXPEND
� Costs $279,863
Bond Discounts _3 304 283,167
FUND BALANCE .- December 31, 1978 $178,501
Committed Contracts 47
REMAINING SURPLUS a December 31 , 1978 1`3.0966
Oak Park He guts
Comments, Page 16
The remaining surplus is apparently the result of special assessments ('For
6rekke Heights # # being calculated in excess of estimated construction costs
(i.e. $348,000 versus $223,000 equals $125,000). We recommend that the City
investigate and analyse this situation during 1979. Our office has developed
some preliminary calculations and is available to assist the City, upon request.
The Raymie Johnson Estates project is being financed by the developers, by
the means of escrowed monies. The City received $93,148 (of a total estimated
cost of $125,000) early in 1979. The remaining costs should be completed and
billed in 1979, after the project is complete.
The previous schedule of financial activity indicates that these projects
have been or are being Fully financed; however, the City sold a third bond issue
in 1979 as additional financing for these projects. This third bond issue does
not appear to be required. We recommend that the City investigate and resolve this
situation during 1919. Our office is available to assist the City, upon request.
The debt service account for the G.O. Bonds of 1978 (see previous summary)
reflect a $44,000 projected deficit. This amount reflects future interest on the
two bond issues sold in 1978. When the Brekke Heights #2 assessments are recalcu-
lated these interest costs should be considered.
CONSOLIDATED CONSTRUCTION
During 1977, the City closed several completed construction accounts and
created the Consolidated Construction Account. This account had a fund balance
of $64,836 and a projected surplus of $98,836 at December 31, 1978 This surplus;
however, is not available to be expended. This surplus is composed of assessments
and other receivables at Dece; ber 31, 1 97 8 . This surplus will become available
over the next fifteen years as 'these assessments and other receivables are collected
and converted to cash,
City of Oak Park Heights
Comments, Page 17
SUMMARY OF ASSESSMENT ACCOUNTS
During the past several years, the City has increased its special assessment
construction and debt service activity. This increased activity requires financial
accounting control not required for the other financial operations of the City.
The operating fund of the City is controled by the City Council by the annual
operating budget. The Special Assessment Funds do not have annual budgets, but
rather long -term budgets that start when a project is approved and continue until
the project is finished and the bonds are fully retired. City accounting systems
are designed to reflect annual operations and annual budgeting control. To be
effective for controlling and monitoring the Special Assessment Funds, additional
analytical information must be generated to compare actual results (from the inception
of each project) with budgeted or projected results. This data must be prepared or
updated each time the City makes a long-term committment (i.e. approval of con-
struction contracts, sale of bonds, approval of assessment rolls, etc.). We
recommend that the City develop and implement policy and procedures to effect proper
financial controls over its special assessment construction and debt service acti-
vities. Our office is available to assist the City, upon request.
ENTE RPRISE FU NDS
The financial statement for the Enterprise Fund (Water and Sewer Utilities) are
presented in Statements 16 through 19.
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 finan-
cial position of each enterprise account at December 31, 1978. 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
C i t:y of 0 -ik Park [lei ghts
Comments, Page 18
depreciation is shown for machinery and equipment only. Depreciation of the wells,
tanks, pumphouse, distribution system and collection system (i.e, those assets not
financed by the utility operations) is not reflected as a charge against operating
revenues.
WATER OPERATING ACC OUNT
1977 1978
AMOUNT PER CENT AMOUNT PER CENT
INCOME:
Customer Billings $ 41,182 96.05% $ 41,773 96.19%
Other 1,695 _ 3.95 _ 1,653 3.81 _
Total Income $ 42, 10 $ 43,426 100.00PX
OPERATING EXPENSES:
Salaries $ 8,369 19.52% $ 8,774 20.21%
Contractual Services 21,627 50.44 11,535 26.56
Other 2, 6.0 1,38 3.18
Total Operating Expenses $ 32,609 _ $ 21,691 _49.955
OPERATING INCOME BEFORE
DEPRECIATION $ 10 ,268 5 % $ 21 ,735 _50 .05/,,
DEPRECIATION - Machinery
and Equipment _ 2 ,690 2,826
NET INCOME 1� -,5 Z $ 18,90
The Net Income of the Water Operating Account increased by $11,000 during 1978
due primarily to decreased cost of repairs.
City of Oak Park Heights
Comments, Page 19
SEWER OP ERATING AC COUNT
_ 1 977 _ 1 9 7 8
AMOUNT PER CENT AMOUNT PERCENT
INCOME:
Customer Billings $ 36,165 94.78% $ 37,736 91.75%
Other 1, 992 5.22 _ 3 ,394 _ 8.
Total Income $ 38, 157 1 00. 0 / $ 41 , 130 100.00P/
OPERATING EXPENSES:
M.W.C.C. $ 20,9 54.82% $ 16,433 39.95%
Other 2,428 _ 6.37 8,9 21.
Total Operating Expenses $ _Z3,347 61.19% $ 25,412 61.78
OPERATING INCOME BEFORE
DEPRECIATION $ 14,810 x.81 $ 15,718 38. 22% =
DEPRECIATION _ Machinery
and Equipment _ 5 5
NET I NCOME $14_,??7 —>js l
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 Commission billings for calendar years 1971
through 1979 are as follows:
ESTIMATED F I NAL
YEAR BILLINGS BILLINGS
1971 $ 9,992 $ 4,175
1972 (53) 210
1973 (5,886) (1,803)
1974 (3,825) 258
1975 (1,954) 6,641
197 4,682 11,698
1977 13,903 9,949
197 20,387 Not Available
1979 26,202 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.
City of Oak Park Heights
Comment's, Page 20
As the preceding 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 dif-
ference 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.
FINANCIAL MANAGEMENT REQUIREMENTS
Financial management requirements for all Cities (Nationally) have increased
tremendously during the past several years. Prior to 1970, most Minnesota Cities
reported their financial activity substantially on the basis of cash receipts and
cash disbursements. The financial management of a City was limited to budgetary
controls to assure that cash disbursements did not exceed budget, for the budgetary
funds. This control was considered effective as long as the City limited its
financial activites to the budgetary funds and all expenditures were paid promptly.
Such controls are still used by small and /or out -state communities.
During the early 1970's the ''New York situation` subsequent events) created
a completely new environment for governmental financial management. Organizations
normally not aware of sound financial management are now greatly concerned in this
area. Organizations which were concerned with sound financial management are now
more aware and more concerned. The new environment is such that financial manage-
ment controls considered to be adequate in the past are now considered to be
inadequate or minimal. Future standards are expected to increase the level of
financial management considered to be adequate.
This new and changing environment places a greater burden upon the elected
and appointed officials of all governmental units, especially upon the Finance
departments and finance; personnel. How these burdens (or challenges) are addressed
I
City of Oak Park Heights
Comments, Page 21
today will have a significant effect upon the City's ability to meet the standards
to be imposed in the future.
The Cities of Minnesota have not ignored these challenges. During 1978, (in
response to the new environment) the State Legislature enacted the City Financial
Reporting Act of 1978. Subsequent thereto, the Minnesota State Auditors Office
issued its "Minimum Reporting Requirements City Financial Reporting ". This
document (which is effective for Minnesota Cities for 1978) incorporates changes
and requirements to be enforced on non - Minnesota Cities For 1980. As usual, Minne-
sota Cities are meeting the new challenges. This aggressive approach will assure
that Minnesota communities will be able to meet the standards to be imposed in
the future.
The City of Oak Park Heights also, has not ignored these challenges. The
City's 1978 Annual Financial Report incorporates the changes and modifications
required by the new ''Minimum Reporting Requirements - City Financial Reporting ''.
These changes were accomplished in accordance with the new State requirements and
the City's desire to improve its financial reporting. This action will have con-
tinued significance when the City authorizes future bond issues. Future accounting
standards will probably affect the City of Oak Park Heights in the area of bonding
at a reasonable interest rate.
The City's 1978 Annual Financial Report is a comprehensive report containing
financial information at December 31, 1978 and for the year ended December 31,
1978 as well as budgetary comparisons. This document incorporates the changes and
adjustments required by the new reporting requirements. These changes, however,
have been made on audit worksheets and schedules only and not on the financial
records of the City.
City of Oak Park He i c;'its
Commeints, Page 22
The City's basic - Financial records are maintained substantially on the basis
of cash receipts and disbursements. These records are the product of the City's
basic accounting system which was designed and implemented during the early 1970's
at a time when cash -basis financial reporting was deemed to be adequate for Minne-
sota Cities. As such, these records and the accounting system are ca ?able of
producing cash -basis financial reports in an efficient and timely manner, However,
these reports are no longer considered adequate. To achieve adequate financial
reports, the City's financial records must be analyzed and adjusted to convert them
to the proper basis (i.e. modified accrual). This process is time consuming and
untimely. Additionally, this process may limit the City's ability to meet the
reporting standards to be imposed in the future.
We recommend that the City initiate an evaluation of its over-all Financial
management system based upon the present environment for governmental financial
management and financial reporting. Such an evaluation should consider the financµ
vial management goals and requirements of the City today and for the next five to
ten years. This evaluation should become the foundation for developing a financial
management system to meet the growing burdens and challenges of the new environment.
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 Heights
Comments, Page 23
An accounting system is a part of the over- all system of internal control and
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 require an auditor to communicate any material
weaknesses in internal accounting controls directly to City Council and /or City
Administrators. our examination for 1978, disclosed no material deficiencies in
the City's system of internal controls not identified in this report or past
reports to the City Council.
SUMMA
The following listing is a summary of the items to be recorded, investigated
and /or resolved during 1979.
1. Convert the City's financial accounting records by recording the December
31, 1978 balance sheet accounts at Janurary 1, 1979 and record all
adjustments to the City's financial records for 1979.
2. Continue City policy and procedures to maximize investment interest
earnings.
3. Establish improved records and procedures over developer receivables to
insure proper and timely collection of all developer accounts, including
connection charges receivable.
4. Approve and record cash transfers to effect the interfund audit adjust-
ments at December 31, 1978.
5, Amend the 1979 Revenue Sharing budget as explained previously; approve
a special Revenue Sharing compliance audit - for 1978; and continue to
monitor City policy and procedures to assure compliance with all Revenue
Sharing rules and regulations.
City of Oak Park Heights
Comrrrents, Page 24
6. Continue to monitor City policy and procedures to assure compliance with
the rules and regulations of the State Planning Agency relating to the
Valley View Park Improvements.
7. Effect the account closings of the several Special Assessment — Construc-
tion Accounts as detailed previously in these Comments,
8. Effect the full financing of the several Special Assessment - Debt Service
Accounts as detailed previously in these Comments.
9. Investigate, analyse and resolve the situation relating to the surplus
financing of the Brekke Heights #2 improvement project, including the
interest costs related to the Improvement Bonds of 1979.
10. Develop and implement policy, procedures, and controls to effect proper
financial management over the City's increasing special assessment construc-
tion and debt service activities.
11, Initiate an evaluation of the City's over -all financial management system
based upon the present environment for governmental financial management
and financial reporting.
Respectfully submitted,
DE LA HUNT VOTO & CO., LTD.
Certified Public Accountants
CITY OF OAK PARK HEIGHTS, MINNESOTA
CONDE COMBINED _BALA SHEE
A FUND TY A ND AC COUNT GROUPS_
^
DECEMBER 31 y � ~ �
SPECIAL
ASSETS GENERAL_ REVENUE_
Cash - Clerk's Balance (Overdraft) $181,308 $ (4,576)
Change Fund 5
Cash with Paying Agents
Investments - At Cost 204,592 104,350
Accrued Interest Receivable 138 222
Accounts Receivable 1,092
Due from Other Funds
Due from County 24 7
Due from Other Governmental Units 10,100
Due from Developers 10,298
M.W.C.C, Credits
Connection Charges Receivable
Taxes Receivable - Delinquent 4,543
Allowance for Estimated Uncollectibles (4,543)
Special Assessments:
Delinquent
Deferred
Amount to be Provided
Fixed Assets - Net
Total Assets I4O M5 5I ,�
LIABI LITIES AND FUND EQUITY
Liabilities:
Accounts Payable $ 58,785
Salaries Payable 1,242
Due to Other Governmental Units 18,728
Due to Other Funds 94,302 25,000
Due to Developers
Meter Deposits
Contracts Payable 8,825
Matured Interest Payable
Bonds Payable
Deferred Revenue
Total Liabilities $181,882 2 000
Fund Equity:
Invested in General Fixed Assets
Reserve for M,W.C,C, Credits
Contributions from Property Owners Net
Retained Earnings
Fund Balance:
Appropriated $ 59 ,000 $ 72 ,650
Unappropriated 166,943 ___2,346
Total Fund Equity $ $_74,99
Total Liabilities and Fund Equity Sy $ 99,��h
STATEMENT 1
PROPRIETARY ACCO GR OUPS_
CAPITAL SPECIAL F UND T YPE GENERAL
PROJECT A ENT FIX AS TOTA
(UNAUDITED)
$ (3,023) $ (17 $ 69, $ 70,986
50
482 482
118,286 721,178 120,365 1,268,771
5,354 5,714
22,401 23,493
80,000 155,589 235,589
775 1,022
10,100
506,920 517,218
283,399 283,399
28,446 28,446
2,372 6,915
( (6,915)
5, 5,867
295,913 295,913
595,094 595,094
1 , 47 0, 229 $ 2 32,808 1 , 703 , 037
x._____ 81
3,186 $ 3,186 $ 3,862 $ 732 $ 66,565
258 1,500
7 89,655
56,649 59,638 235,589
297 297
38,324 38,324
58,325 67,150
483 483
1,74o,000 1,740,000
48,571 _�_--- --__ -- -_48, 71
308 406 $1 ,_862 L.605 $ �1 10,241 $ - $2,288,134
$ 232,808 $ 232,808
$ 279, 2 79,445
1,434,698 1,434,698
141,273 141,273
$ 47,535 179,185
$ _86A57 233,492 --------------- _--- 4
$ 86 $__281,027 $ 1,855,416 $ 232,803 $2,757 047
X125, 263 1�[3._6a S 1265,652-_ 232,808
The Accompanying Notes are an Integral Part of These Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA
CONDENSED COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
ALL GOVERNMENTAL FUND TYPES
FOR THE YEAR ENDED DECEMBER 31, 1978
SPECIAL
GENER REVENUE
REVENUE:
Taxes $ 211,577
Intergovernmental Revenue 128,308 $ 52,433
Licenses and Permits 60,921
Fines and Forfeits 1,418
Interest Income 14,811 3,
Charges for Current Services 10,200
Special Assessments:
New Rolls Adopted
Interest on Assessments
Connection Charges
Other Revenue _ 10 ,542
Total Revenue $ 437,777 $ 56,329
EXPENDITURES:
Current Expenditures:
General Government $ 94,617 $ 4,922
Public Safety 162
Streets and Highways 2 4,99 1
Sanitation and Waste Removal 37,394
Recreation 30,383
Miscellaneous 1,204
Capital Outlay 13,049 $ 4,975
Debt Service:
Interest
Paying Agent Fees
Construction Costs
Total Expenditures $ 364,091 $ 9,89
REVENUE OVER (UNDER) EXPENDITURES $ 73 ,686 $ 46,432
OTHER INCREASES (DECREASES):
Decrease in Reserve for Annexation 2,800
Transfers from (to) other Funds (119,348) $(24,484)
Bond Proceeds
Changes in Amount to be Provided
Total Other Increases (Decreases) $(116,548 $(24,484
NET INCREASE (DECREASE) IN FUND BALANCE BEFORE
CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES $ (42,862) $ 21 ,948
CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES
FUND BALANCE -- January 1, 1978 268,805 53,048
FUND BALANCE - DECEMBER 31, 1978 $ 225,943 $
STATEMENT 2
CAPITAL SPECIAL
PROJECT ASSESSMENT TOTAL
$ 76,561 $ 288,138
$ 30,4o4 3,414 214,559
6o,921
1,418
8,369 40,870 67,946
618,871 629,071
65,674 65,674
20,332 20,332
53,130 53,130
_ 1 5 42
$ 38,773 $ 878,85 $1,LEl1,731
$ 99,539
162,453
24,991
37,394
$ 973 31,356
1,204
3,187 21,211
$ 77, 77,245
264 264
56,649 437,332 493,981
$ 60 $ 514,841 $ 949,638
$ (22,03 6) $ 364,011 $ 462,093
$ 2,800
$107,500 $ 36,332
196,696 196,696
(411,597 (411,597
$107,500 $ (178, $ (212,101
$ 85,464 $ 185,442 $ 2L +9,992
(78,975) (635,694) (714,669)
80,368 _ 731 ,279 1,133,50
86Z X28 , 027 $_ 668 82
The Accompanying Notes are an Integral Part of These Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINED STATEMENT OF REVENUE EXPENDITURES AND CHANGES IN FU BALANCE
BUDGET AND ACTUAL - GENERAL AND SPECIAL REVENUE FUND TYPES
FOR THE YEAR ENDED DECEMBER 31, 1978
GENERAL FUND
OVER
(UNDER)
BUDGET ACTUAL BUDGET
REVENUE: $222,036 $ 211,577 $(10,459)
Taxes
Intergovernmental Revenue. 77 ,434 128,308 50
Licenses and Permits 5,200 6 1 , 5 ,
Fines and Forfeits 1 8 1 1'
8
Interest Income 2,500 14,811 12,311
Charges for Current Services 10,200 10,200
Other Revenue 10,542 10,542
Total Revenue 307,170 437,777 $
EXPENDITURES:
Current and Capital: 6 607
General Government $ 88 $ 9 ,232 $ 7,
Publ Safety 108,050 162,453 5Lt,403
Streets and Highways 38,100 24,991 (13,109)
Sanitation and Waste Removal 35,000 37 ,394 2,394
Recreation 44 ,000 41,817 (2,
Miscellaneous 1,204 1
Total Expenditures $313,7 75 $ 364,091 50,316
REVENUE OVER (UNDER) EXPENDITURES _ (6,600 $ 73 ,686 $ 80,291
OTHER INCREASES ( DECREASES )
Transfer to Capital Projects Fund $ (82,500)
Transfer to Special Revenue (51$)
Decrease in Reserve for Annexation 2,800
Transfer to Special Assessment Fund - 36 332)
Total Other Increases (Decreases) $(116548)
NET INCREASE (DECREASE) IN FUND BALANCE $ (42,862)
FUND BALANCE - January 1, 1978 268 805
FUND BALANCE - December 31, 1978 ??�
STATEMENT 3
_ SPECIAL REVENUE TOTAL
OVER OVER
(UNDER) (UNDER)
BUDGET ACTUA BUDGET BUDGET ACTUAL _ BUDGET
$222,036 $ 211,577 $(1
$ 24,743 $ 52,433 $ 27,690 102,177 180,741 78,564
5,200 60,921 55,721
1,418 1,418
3 3,896 2,500 18,707 16,207
10,200 10,200
10,542 10,542
24 56,329 31 586 $331,913 $ 494,1 $ 162,19 3
$ 88,625 $ 96,232 $ 7,607
108,050 162,453 54,403
38,100 24,991 (13,109)
35,000 37,394 2 ,39 4
$ 45,998 $ 9,897 $(36,101) 89,998 51,714 (38,284)
1,204 1,204
$ 45,9 S 9,897 $(36 $359,773 $ 373,988 1 $ 4,215
_ 2 1,255 ) 4S 6,432 s 67,687 2 860 $ 120,118 147.928
$(25,000) $(107,500)
516 -0
2,800
_06, 3 3 2)
2$( 4,48 141,032)
$ 21,948 $ (20,914)
53,048 321,853
LZ4,3 $ 300,.9.3
The Accompanying Notes are an Integral Part of These Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 4
ENTERPRISE FUND
COMBINED STATEMENT OF REVENUE EXPENSES AND
CHANGES IN RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1 978
TOTAL
REVENUE:
Customer Billings $ 79,509
Penalties 1,246
Total Operating Revenue 80
OPERATING EXPENSES:
Personal Services $ 9,272
Contractual Services 13,090
Fixed Charges 23,043
Materials and Supplies 1,698
Depreciation:
On Purchased Assets 3,409
On Contributed Assets 33,220
Total Operating Expenses 83,732
OPERATING INCOME (LOSS) ( 2 ,977)
ADD: NON REVENUE:
Interest $ 365
Plumbing Permits 864
Sewer Availability Charge 1,262
Refunds and Reimbursements 1,215
Sale and Compensation for Loss of Property 9 5
Total Non — Operating Revenue 3
NET INCOME $ 824
OTHER INCREASES:
Credit Arising from Transfer of Depreciation
to Contributions from Property Owners 33,22
NE1' INCREASE $ 34,044
RETAINED EARNINGS — January 1, 1978 107,229
RETAINED EARNINGS — December 31, 197$ $141,271
The Accompanying Notes are an Integral Part of These Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 5
ENTER P R ISE FUNDS
COMB I NED STATEMENT OF CHANGES IN FINANCIA POS IT ION
FOR THE YEAR ENDED DECEMBER 31, 1978
TOTAL
SOURCES OF FINANCIAL RESOURCES:
Operations:
Net Income $ 824
Expenses not Requiring Outlay of
Working Capital:
Depreciation 36,629
Total Sources $ 37,453
USES OF FINANCIAL RESOURCES:
Purchase of Fixed Assets 3,34
Net Increase in Working Capital S 34 = 10 8
COMPONENTS OF INCREASE IN WORKING CAPITAL:
Cash
$(
Investments 120,365
Accounts Receivable (197)
Due from Other Government Units 3,954
Accounts Payable 195
Due to Other Government Units (63,467)
Salaries Payable (243)
Due to Other Funds 500
Meter Deposits ,230
Total Increase in Working Capital -4 10B
The Accompanying Notes are an Integral Part: of These Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINED S CHED ULE O F INDEBTEDNESS
DECEMBER 31, 1978 - - - - --
FINAL NET
PAYMENT INTEREST
DATED D UE RATE
BONDED INDEBTEDNESS:
Special Assessment Bonds:
General Obligation Bonds of 1967 9/1/67 9/1/97 4.50%
Water and Sanitary Sewer Bonds of 1968 3/1/68 2/1/98 4.80%
General Obligation Storm Sewer Improvement
Bonds of 1971 5/1/71 5/1/91 4.60r /
General Obligation Bonds of 1976 9/1/76 10/1/86 4.00%
Improvement Bonds of 1977 12/3/77 11/1/83 4.50%
General Obligation Improvement Bonds of 1978 9/1/78 9/l/84 5.50%
General Obligation Improvement Bonds of 1978 11/1/78 11/1/84 5.50%
Total Indebtedness
i
STATEMENT 6
AUTHORIZED PRINCIPAL INTEREST
AND OUTSTANDING DUE DUE
ISSUED RETIRED AT 12/31/78 IN 1979 IN 1979
$ 825,000 $170,000 $ 655,000 $ 30,000 $ 30,285
490,000 50,000 440,000 10 21,900
173,000 43,000 130,000 10,000 6,740
249,000 34,000 215,000 35,000 10,170
100,000 —0— 100,000 20,000 4,5oo
100,000 —0— 100,000 —0— 5,5
100,00 —0— 100,000 —0— 5,50
S 2 0__,_000 ,]4 , 000 � 1 05,, 000
The Accompanying Notes are an Integral Part of These Financial Statements
C ITY OF OAK PARK FIE IGHTS , M INNESOTA STATEMENT 7
GENERAL FUND
BALANCE SHEET
DECEMBER 31, 1978
ASS ETS
Cash — Clerk's Balance $181,308
Change Fund 50
Investments — At Cost 204,592
Accrued Interest Receivable 138
Accounts Receivable 1,092
Due from County 247
Due from Other Governmental Units 10,100
Due From Developers 10,298
Taxes Receivable — Delinquent 4,543
Allowance for Estimated Uncollectibles 4,543)
Total Assets $407,82.5
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts Payable $ 58,785
Salaries Payable 1,242
Due to Other Governmental Units 18,728
Due to Other Funds 94,302
Contracts Payable 8,825
Total Liabilities $181
Fund Balance:
Appropriated — 1979 Budget $ 59,000
Unappropriated 166,943
Total Fund Balance $225
Total Liabilities and Fund Balance S4 92Z,825
The Accompanying Notes are an Integral Part of These Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 8
GENERAL FUND PAGE 1
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 197
OVER
(UNDER)
BUDGET ACTUAL BUDGET
REVENUE:
Taxes:
Current and Delinquent $210,710
Fiscal Disparities 578
Other 289
Total Taxes (1) 22$ 2,036 $211,577 $(10
Intergovernmental Revenue:
State:
Homestead Credit (1) $ 9,442 $ 9,442
Local Government Aid $ 77, 77,434
Machinery Aid 355 355
Diseased Tree Removal Aid 8,113 8,113
Police Aid 8,381 8,381
Local Planning Aid 3,021 3,021
Federal:
C.E.T,A. 21,562 21,562
Total Intergovernmental Revenue 77,43E 128 308 50,874
Licenses and Permits $ 5,200 $ 60,921 $ 55,7
Fines and Forfeits 1,418 1,418
Interest Income 2,500 14,811, 12,311
Charges for Current Services 10,200 10,200
Other:
Refunds and Reimbursements 3, 3,199
Charges for Construction Costs 6,443 6,443
Sale of Firearms 700 700
Donations 200 200
Total Revenue $307,170 $437,777 $130,
(1) The budget amount for Total Taxes reflects amounts to be collected from property
owr;. and State -paid homestead credits.
The Accompanying Notes are an Integral Part of These Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 8
GENERAL FUND PAGE 2
COMBINING STATEMENT OF REVENUE EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 1978
OVER
(UNDER)
BUDGET ACTUAL BUDGET
EXPENDITURES:
General Government:
Mayor and Council:
Current Expense $ 51,100 $ 48,546 $ (2,554)
Elections:
Current Expense 1,125 1,223 98
City Clerk:
Current Expense 15,800 19,581 3,781
Capital Outlay 25 25
Planning and Zoning:
Current Expense 14,000 21,840 7,840
City Hal;:
Current Expense 6,600 3,402 (3,198)
Capital Outlay 1,615 1,615
Total General Government 88,62.5 96,232 7
Public Safety:
Police Department:
Current Expense $100,000 $108,704 $ 8,704
Fire Protection:
Current Expense 7,000 5,473 (1,527)
Protective Inspection:
Current Expense 1 1 0 50 48,276 47,226
Total Public Safety $108,050 _162,453 54,403
Streets and Highways:
Streets and Alleys:
Current Expense $ 5, $ 7,827 $ 2,227
Snow and Ice Removal:
Current Expense 10,000 4,008 (5,992)
Street Lighting:
Current Expense 15,000 12,899 (2,101)
Arboreous:
Current Expense 7,5 257 7,243)
Total Streets and Highways 38,100 24,991 13,109)
Sanitation and Waste Removal:
Refuse Collection and Disposal:
Current Expense $ 23,000 $ 21,904 $ (1,096)
Tree Removal and Plants I.
Current Expense 12,000 15,490 3,490
Total Sanitation and Waste Removal 3$ 5,000 37,394 2,394
Recreation:
Parks, Playgrounds and Rinks:
Current Expense $ 29,000 $ 30,383 $ 1,383
Capital Outlay 15,000 11,434 3,566)
Total Recreation 4 4,00 0 4$ 1,817 2,183)
The Accompanying Notes are an Integral Part of These Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 8
GENERAL FUND PAGE 3
COMBINING STATEMENT OF R E XPENDITURES AND
CHANGE IN FUND BALAN -- BUDGET AND ACTUA
FOR THE YEAR ENDED DECEMBER 31 1978
OVER
(UNDER)
BUDGET ACTUAL BUDGET
EXPENDITURES (CONTINUED):
Miscellaneous:
Refunds and Reimbursements $ 287
Storm Sewer Study 917
Total Miscellaneous 1,204 1,204
Total Expenditures $ 313,77 , 5 $ 364,091 50,316
REVENUE OVER (UNDER) EXPENDITURES X 73 ,686 � EO 2 1
OTHER INCREASES (DECREASES): 2,800
Decrease in Reserve for Annexation $ 82,500)
Transfer to Capital Projects Fund
Transfer to Anti — Recession Fund (516)
Transfer to Special Assessment Fund (36,332
Total Other Increases (Decreases) $(116
NET INCREASE (DECREASE) IN FUND BALANCE $ (42,862)
FUND BALANCE — January 1, 1978 268,805
FUND BALANCE — December 31, 1978 �_ 225 943_
The Accompanying Notes are an Integral Part of These Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 9
SPECIAL REVENUE FUN
COMB BALANCE SHEET
DECEMBER 31, 1978
FEDERAL
REVENUE
ASSETS SHARING
Cash -- Clerk's Balance (Overdraft) $ (4,576)
Investments — At Cost 104,350
Accrued Interest Receivable 222
Total Assets �_ 933 6.
LIABILITIES AND FUND BALANCE
Liabilities:
Due to Other Funds 25,000
Fund Balance:
Appropriated $ 7 2 ,650
Unappropriated 2,346
Total Fund Balance 74,99
Total Liabilities and Fund Balance
The Accompanying Notes are an Integral Part of These. Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 10
SPECIAL REV ENUE FU
COMBINING STATEMENT OF REVENUE_,_EXPENDITURES AN
CHANGES IN FUND BALANC
FOR THE YEAR ENDED QECEMBER 31, 1978
ANTI —
FEDERAL RECESSION
REVENUE FISCAL
SHARING ASSISTANCE TOTAL
REVENUE:
Intergovernmental:
Federal Grants $ 51 ,960 $ LE73 $ 52,433
Interest Income 3,896 3,896
Total Revenue $55 473 56 329
EXPENDITURES:
Current Expense $ 4,57 $ 346 $ 4,22
Capital Outlay — Playground Equipment 4,975 4, 975
Total Expenditures 9 551 $ 346 9,897
REVENUE OVER ( UNDER) EXPENDITURES X6 ,305 $ — �7 X46,432
OTHER INCREASES (DECREASES):
Transfer to Capital Projects Fund $(25,000) $(25,000)
Transfer from General Fund _._ —_5t6 516
Total Increases (Decreases) 25,000) $ 516 _(24
NET INCREASE (DECREASE) IN FUND BALANCE $ 21 ,305 $ 643 $ 21,948
FUND BALANCE — January 1, 1978 53,691 (64 3) 53,048
FUND BALANCE — December 31, 1978 S 4 6 S —�- $ 7�+ 99
The Accompanying Notes are an Integral Part of These Financial Statements
CITY OF OAK PART: HEIGHTS, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING STAT OF REVENUE EXPENDITURES AN
CHANGES IN FUND BALANCE — BUDGET AND ACTUAL
FOR THE YEAR ENDED DECEMBER 31, 1 97 8
FEDERAL REVENUE SHARING
OVER
(UNDER)
BUDGET ACTUAL BUDGET
REVENUE:
Intergovernmental Revenue:
Federal Grants $ 24,743 $ 51,96o $ 27,217
Interest Income _ 3,896 3,896
Total Revenue 24,743 55,856 31
EXPENDITURES:
Current Expense $ 28,498 $ 4,576 $(23,9 ?2)
Capital Outlay 17,500 4,975 (12
Total Expenditures L45, 998 9,551 3 6,447 )
REVENUE OVER (UNDER) EXPENDITURES 1 X 255 ) $ 46 305 67 ,560
OTHER INCREASES (DECREASES):
Transfer to Capital Projects Fund $(25,000)
Transfer to General Fund
Total Increases (Decreases) $(25
NET INCREASE (DECREASE) IN FUND BALANCE $ 21,305
FUND BALANCE — January 1, 1978 53,691
FUND BALANCE — December 31, 1978 x_296
STATEMENT 11
ANTI FISCAL ASSISTANCE TOTAL
OVER OVER
(UNDER) (UNDER)
BUDGET ACTUAL_ BUDG BUDGET ACTUAL BUDGET
$ 473 $ 473 $ 24,743 $ 52,433 $ 27,690
3,896 3,8
$ -0- $ 473 $ 473 24,743 $ 56, _339 X3 1,586
$ 346 $ 346 $ 28,498 $ 4,922 $(23,576)
17 ,500 4,975 12,5
$ -0- $ 346 _ 316 45,9 8 97 36,iof)
S -0- 127 __ 1 27. $ 21, 255) 46 432 67,687
$(25,000)
$_ 516 516
516 $(24,
$ 643 $ 21,948
X643) 53,0
o-
5-14,93
The Accompanying Notes are an Integral Part of These Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 12
C APITAL PROJECT'S FUNDS
_C OMBINING BALANCE SH EET
DECEMBER 31, 1978 - —
CAPITAL LAWCON
ASSETS IMPROVEMENTS GRANT TOTAL
Cash (Overdra $ (3,023) $ (3,023)
Investments – At Cost $ 29,152 89,134 118,286
Due From Other Funds 80,000 80,000
Total Assets $ 29, $166 ,111 $195°263-
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts Payable $ 3,186 $ 3,186
Due to Other Funds 56,649 56,649
Deferred Revenue:
Unearned Lawcon Grant 48 ,57 1 _ �; ^,5
Total Liabilities $108,406 lO(L, 06
Fund Balance 29,15? 57,705. 8 6,857
Total liabilities and Fund Balance L_29 6166 111 z6a
The Accompanying Notes are an Integral F'ar't of These Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 13
CAPITAL PROJECTS FUND
COMBINING STATEMENT OF REVENUE, EXPENDI AND
CHANGES IN BALANCE
FOR THE YEAR ENDED DECEMBER 31 1978
CAPITAL LAWCON
IMPROVEMENTS GRANT TOTAL
REVENUE:
Intergovernmental Revenue: $ 30,404 $ 30,404
Federal Grants $ 1 6,717 8,369
Interest Income
Total Revenue $ 1,652 37,121 38,773
EXPENDITURES:
Current Expenditures: $ 973 $ 973
Personal Services
Capital Outlay 3,187 3,187
56,648 56,649
Construction Costs _
Total Expenditures $ �__0 60,808 60,809
REVENUE OVER (UNDER) EXPENDITURES $ 1 , 652 23,688) 22,036)
OTHER INCREASES (DECREASES):
Transfer from General Fund $ 27,500 $ 55,00 $ 5 000
,500
2
Transfer from Special Revenue Fund 25000 25
Total Other Increases (Decreases) - 80,
NET INCREASES (DECREASES IN FUND BALANCE $ 29 ,152 $ 56 ,31 2 $ 85,464
CUMULATIVE EFFECT OF CHANGES IN ACCOUNTING —O (78,975) (78,975)
PRINCIPLES
FUND BALANCE — January 1, 1978 — _ 80,368 80,368
FUND BALANCE — December 31, 1978 5 SZ' =ZOO S 86 g51
The Accompanying Notes are an Integral Part: of These Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA
SPECIAL ASSESSMEN FUNDS
COMBINING BALANCE SHEET
DECEMBER 31 1978
G.O. STORM
SEWER
G.O. BONDS IMPROVEMENT $249,000
OF 1967 BONDS G.O, BONDS
ASSETS AND 1968 OF 1971 OF 1976
Cash — Clerk's Balance (Overdraft) $ 849 $ 998 $(11,812)
Cash with Paying Agents 125 132
Investments — At Cost 446,280 13,025 168,622
Accrued Interest Receivable 4,003 1,351
Due from Other Funds 61,810 420
Due from County 253 20 474
Due from Developers 502
Connection Charges Receivable 11,832
Taxes Receivable — Delinquent 2,047 207 118
Allowance For Estimated Uncollectibles (2,047) (207) (118)
Special Assessments:
Delinquent 3,632 37 2,193
Deferred 151,085 1,489 28,170
Amount to be Provided 415,256 114,011 65,827
Total Assets S1.0 .12 Sl3o 45�
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts Payable
Due to Other Funds $ 8 ,038
Due t:o Developers
Contracts Payable
Matured Interest Payable $ 125 133
Bonds Payable 1 2 095,000 $13 0,000 215,000
Total Liabilities $ 1,0 95, 125 513 0,000 $
Fund Balance (Deficit):
Appropriated:
Committed Contracts
Unappropriated:
Construction Accounts L
Total Fund Balance $ 12, 288
Total L i a b i l i t i e s and Fund Balance
STATEMENT 14
$100,000 $200,000
G.O. BONDS G.O. BONDS 1978 CONSOLIDATED
OF 1977 OF 1978 IMP ROVEMENT CONSTRUCTION TOTAL
$(91,143) $( $ (860) $ ( $ (171,986)
225 482
81,692 11,559 721,178
5,354
36,332 56,649 378 155,589
28 775
62,192 443,984 242 506,920
16,614 28,446
2,372
(
5 5,867
65,674 49, 295,913
595,094
5443 0) 6 5 13 ,_1.43 63?
$ 613 $ 3,249 $ 3,862
9,000 42,600 59,638
$ 297 297
38,872 19,453 58,325
225 483
100,00 20 0,000 1,740,
14$ 8,710 X5,302 297 $1,862,605
$ 47,535 $ 47,535
$ 6,262 130,966 - ) X64, 2
6, 262 $178 X 860) $6 4,836 X
- s- �6 F - 133 $ 2 -, 43,61?
The Accompanying Not:es are an Integral Part of These Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA
SPECIAL ASSE FUN
COMBININ STATEM O F R EXPEN AN
CHAN I FUND BALANC J
FOR THE YEAR ENDED DECEMBER 31, 197
G.O. BONDS G.O. STORM SEWER $249,000
OF 1967 IMPROVEMENT G.O. BONDS
REVENUE: AND 1968 BONDS OF 1971 OF 1976
Taxes:
Current and Delinquent $ 60,231 $ 11 ,389 $ 4,732
Fiscal Disparities 165 31 1 3
Total Taxes $ 60,396 11,420 4,745
Intergovernmental Revenue:
Homestead Credit $ 2,692 510 212
Special Assessments:
New Rolls Adopted
Connection Charges $ 63,630 $ (6,900)
Interest on Assessments 11,074 $ 144 4,417
Direct Charges to Developers _
Total Special Assessments $ 74 ,704 144 $ (2,4 ,
Interest on Investments 24,425 S� 26 51
Total Revenue $ 162, 12,100 14,764
EXPENDITURES:
Debt Service:
Interest $ 54,015 $ 7,200 $ 11,530
Paying Agent Fees 159 26 54
Total Debt Service $ 54,174 7,226 $1 1,584
Construction Costs
Total Expenditures 5 174 7 226 11 584
REVENUE OVER (UNDER) EXPENDITUR 108 043 4 , 874 3 ,i80
OTHER INCREASES (DECREASES)
Bond Proceeds
Transfers In - General Fund
Changes in Amount to be Provided 5� 108,043) S (4,874) 3,1
Total Other Increases (Decreases) $(108 _ L4, L(3
NET INCREASE (DECREASE) IN FUND BALANCE
BEFORE CUMULATIVE EFFECT OF CHANGES 1N
ACCOUNTING PRINCIPLES $ - 0 - $ -0- $ _O_
CUMULATIVE EFFECT OF CHANGES IN
ACCOUNTING PRINCIPLES (711 (27,415) 8,207
FUND BALANCE (DEFICIT) - January 1, 1 978 711 27,415 24,081
FUND BALANCE ( DEFICIT) - D ecember 31, 1978 $ _0_ __ $ _0_ $^3Z
STATEMENT 15
$100,000 $200,000
G.O. BONDS CONSOLIDATED G.O. BONDS 1978
OF 1977 CONSTRUCTION OF 1978 IMPROVEMENTS TO TAL _
$ 76,352
209
$ 7 6-
$ 3,4
$ 65,674 $ 65,674
(3,600) 53,130
$ 4,697 20,332
157,212 $ 461,659 61 8,871
$ 219,286 X4,697 $ 461,659 $ 758,0
2,256 ,x;64 $ 9 s 40,
$ 221 , 542 $ 6, > 61 461 ,668 $ -0- Lg78 857
$ 4,500 $ 77,245
�5 _ 264
E ::4&5?5 ,� +37 , 339
X1, 6,609 279, $ 860
X61 , 1. $ -0 279, _ 860 514, 3 41
$6 _ 18 (860 X 364,01 1
$ 196,696 $ 196,696
$ 36,332 36,332
95,500) (200,000 _ (411,597
fi 59 168 -o- _ 3,304) 0_ _ �1 78,569 )
$ 1,240 $ 6,561 $ 178,501 $ (860) $ 185,442
95,500 -0- -o- -0- (635,694)
90,478) 58,275 -0- -0- 731,2
6 262 _ $ 64, 3_ $ 178 , So 1 460 X 81_, 021
The Accompanying Notes are an Integral Part of These Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 16
ENTERPR ISE FUNDS
COMBINING BALANCE SHEET
DECEMBER 31, 197
WATER SEWER
ASSETS OPERATING OPERATING TOTA L
CURRENT ASSETS:
Cash - Clerk's Balance $ 2,536 $ 66,727 $ 69,263
Accounts Receivable - General Customers 11,407 10,994 22,401
Investments - At Cost 64,540 55,825 120,365
Total Current Assets 78,483 $ 133,546 $ 212,029
UTILITY PLANT IN SERVICE - AT COST;
Buildings and Structures $304,576 $ 304,576
Machinery and Equipment 50 ,476 $ 3 ,644 54,120
Distribution and Collection Systems 556 799,583 1,356,4
Totals $911,874 $ 803,227 $1,715,101
Less: Allowance for Depreciation 117 127 244,87
Net Fixed Assets $ 794,578 $ 675,651 $1,470,229
OTHER ASSETS:
Due from Metropolitan Waste
Control Commission $ 2 83,399 $ 283
Total Assets $ 3_061 $1,092,59 5 Lj ��, 65_
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES:
Accounts Payable $ 692 $ 40 $ 732
Due to Other Government Units Lt39 70,488 70,927
Salaries Payable 258 _ 258
Total Current Liabilities 1 389 $ 70 ,528 $ 71,9
NON CURRENT LIABILITIES:
Meter Deposits 38,32Lf "8,324
Total Liabilities 39,713 $ 70,528 $ 11
FUND EQUITY:
Contributions from Property Owners $760,236 $ 674,462. $1
Credits Receivable from Metropolitan
Waste Control Commission 27 9 44 5 279,
Retained Earnings 73,112 68,161 141
Total Fund Equity X83_3 $1,0 22,068 $1,855,416
Total Liab i l i ties and Fund Equity 187o6t _$t 09_2
The Accompanying Notes are an Integral Part of These Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 17
ENTERPR ISE F
COMB STATEMENT OF REVEN EXPENSES AND
CHANGES IN RETAINED EARNI
FOR THE YEAR ENDED DECEMBER 31, 1978
WATER SEWER
OPERATING OPERATING TOTAL
REVENUE:
Customer Billings $ 41,773 $ 37,736 $ 79,509
Penalties 623 62 1,246
Total Operating Revenue $ 42,39 38,359 80,755
OPERATING EXPENSES:
Personal Services $ 8,77LE $ 498 $ 9,
Contractual Services 11,535 1,555 13,090
Fixed Charges 10 23,033 23,043
Materials and Supplies 1,372 326 1,698
Depreciation:
On Purchased Assets 2,826 583 3,409
On Contributed Assets 1 7,228 15,992 33,22
Total Operating Expenses 941 41,987 83 >732
OPERATING INCOME (LOSS) 9 651 "3, 628) L_2 977
ADD: NON - OPERATING REVENUE:
Interest $ 365 $ 365
Plumbing Perm its 424 $ 440 864
Sewer Availability Charge Fees 1,262 1,262
Refunds and Reimbursements 146 1,069 1,215
Sale and Compensation for Loss of Property 95 95
Non - Operating Revenue $ 1,030 2,77 .__3_ , x 801
NET INCOME (LOSS) $ 1,681 $ (857) $ 824
OTHER INCREASES-
Credit Arising From Transfer of Depreciation
to Contributions from Property Owners 17,228 15 _ 33,220
NET INCREASE $ 18,909 $ 15,135 $ 34,044
RETAINED EARNINGS - January 1, 1978 5L�,203 53 ,026 1 07,229
RETAINED EARNINGS - December 31, 1978 73, 112 S 68, 161 9 „273
The Accompanying Notes are an Integral Part of These Financial Statements
CITY OF OAK PARK H'C I ZITS, MINNESOTA STATEMENT 18
ENTERPRISE FUN
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION
FOR THE YEAR ENDED DECEMBER 31 1978
WATER SEWER
OPERATING OPERATING TOTAL
SOURCES OF FINANCIAL RESOURCES:
Operations:
Net Income (Loss) $ 1,681 $ (857), $ 824
Expenses not Requiring Outlay of
Working Capital:
Depreciation 2 0,054 16,57 36,629
Total Sources $ 21,735 $ 15,718 $ 37,453
USES OF FINANCIAL RESOURCES:
Purchase of Fixed Assets 3,345 _ 3 ,345
Net: Increase in Working Capital $ 18, 390 �_1 _5,718 5__
COMPONENTS OF INCREASE IN WORKING CAPITAL:
Cash $(40,8 $ 19,034 $(
Investments 64, 540 55,825 120,365
Accounts Receivable (317) 180 (197)
Due from Other Government Units 3,954 3,954
Accounts Payable 13 182 195
Due to Other Government Units 5 (63 ,472) (63,467)
Salaries Payable ( 15 (243)
Due to Other Funds 500 500
Meter Deposits _ 5,230) 5,230)
Net Increase in Working Capital 5j — 8, -3-9 Q $ 1 ,718 $ 34,108
The Accompanying Notes are an Integral Part of These Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT 19
STAT OF GEN ERAL_ FIXED ASS ETS
- --
DECEMBER 31, 1978 --
(UNAUDITED)
BALANCE BALANCE
1/1/78 ADDITIONS 12/31
Land $ 75,000 $ 75,000
Buildings and Structures 94,931 94,931
Machinery and Equipment 46,237 $ 10,027 56,264
Furniture and Fixtures 6,466 147 6,613
Total 52226 = 1 0 1 74 5232,808
The Accompanying Notes are an Integral Part of These Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1 97 8
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Except as disclosed below, the accounting policies of the City of Oak Park
Heights, Minnesota conform to generally accepted accounting principles as
applicable to governmental units. The following is a summary of the more
significant policies.
FUND ACCOUNTING
The accounts of the City are organized on the basis of funds or account
groups, each of which is considered to be a separate accounting entity. The
operations of each fund are accounted for by providing a separate set of
self— balancing accounts which comprise its assets, liabilities, fund equity,
revenues and expenditures or expenses. The various funds are grouped by
type in the financial statements.
BASES OF ACCOUNTING
The modified accrual basis of accounting is followed by the governmental funds
(general, special revenue, capital projects, and special assessment funds).
Under this method of accounting, revenue is recognized when received in cash,
except for revenue of a material amount that has not been received in cash,
except for revenue of a material amount that has not been received at the
normal time of receipt and revenue susceptible to accrual. Revenue considered
susceptible to accrual are those revenues that are both measurable and avail—
able to finance the governmental operations during the year. Expenditures
are recorded on the accrual basis except for:
(a) Disbursements for inventory type items and prepaid expenses
which are considered expenditures at the time of purchase, and
(b) Interest on long — term debt which is expended when due, except
for January maturities which are recorded as expended, in the
previous year.
The accrual basis of accounting is followed by the proprietary funds (water
and sewer). Under this method of accounting, revenue is recognized during
the accounting period in which it is earned and becomes measurable and
expenses are recognized in the accounting period in which they are incurred,
if measurable.
INVESTMENTS
Investments are stated at cost. Accrued interest is recorded as of the
balance sheet date.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NO"I TO FIN STAT EMENTS
DECEMBER 31 , 1978
NOTE 1 — SUMM OF SIGNIFI ACCOUNTING POLICIES — CONTINUED
PROPERTY TAX REVENUE RECOGNITION
Property taxes are payable (by property owners) on May 31 and October 31
for each calendar year. These taxes are collected by the County Auditor
and remitted to the City by approximately each subsequent July 15, December
15 and April 15.
Revenue from property taxes is recognized by the City when received in cash
except for amounts collected by and due from the County Auditor at year end.
Allowance for uncollected property taxes are provided for the full amount
of delinquent taxes receivable from property owners.
SPECIAL ASSESSMENT REVENUE RECOGNITION
Special Assessments are levied against benefiting properties for the cost
(or a portion of the cost) of special assessment improvement projects. These
assessments are collectible (by the City) over a term of years usually con -
sistent 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 (and often do)
to prepay 'Future installments without interest on prepayment penalties.
Revenue from special assessments is recognized by the City when the assess —
menu rolls are adopted by the City and these assessments become liens upon
the benefiting properties. Any adjustments, after the original assessment
rolls are adopted, are recognized in the year the adjustment is determined
and measurable. Current interest on assessment installments is recognized
as revenue in the year in which the installment is due. Delinquent interest:
and penalties is recognized as revenue when received in cash, except for
amounts collected by and due from the County Auditor at year end. No
allot�.ance for potentially uncollectible assessments is provided as these
assessments are liens upon the benefiting properties until paid or adjusted.
INVENTORIES
The original cost of materials and supplies are generally recorded as expendi
tures or expenses at the time of purchase for the governmental fund types and
the enterprise fund types. These fund types do not maintain significant
amounts of inventories of materials and supplies.
ENTERPRISE FUND FIXED ASSETS
Enterprise Fund fixed assets are stated at cost, estimated cost or, in the
case of contributions, at fair market value at the time received. Deprecia—
tion has been provided using the straight--iine method, over a period of 5
to 50 years.
Depreciation charges on contributed assets is charged against operations, as
shown in Statement 18, but not against retained earnings. The City follows
the policy of establishing utility rates at amounts exclusive of depreciation
on contributed assets. Accordingly, this depreciation is ultimately charged
to the contributions account.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1978
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POL — CONTINUED
GENERAL FIXED ASSETS
General fixed assets are recognized as expenditures of the various funds at
the time of purchase. Such assets are capitalized, at cost, in the general
fixed assets group of accounts except for certain improvements (roads, bridges,
curbs, gutters, streets, sidewalks, drainage system and lighting systems)
which are not capitalized. Gifts or contributions are recorded in general
fixed assets at fair market value at the time received. No depreciation has
been provided on general fixed assets.
DEFERRED AD VALOREM TAX LEVIES — SPECIAL ASSESSMENT BOND ISSUES
Certain special assessment bond issues sold by the City are partially financed
by ad valorem tax levies in addition to special assessments levies against
the benefiting properties. When a bond issue to be financed partially or
wholly by ad valorem tax levies is sold, specific annual amounts of such
tax levies are stated in the bond resolution and the County Auditor is
notified and instructed to levy these taxes over the appropriate years.
These future tax levies are subject to cancellation when and if the City
has provided alternative sources of financing.
These future scheduled tax levies are now shown as assets of the special
assessment funds at December 31, 197 in accordance with generally accepted
accounting principles. Revenue from these tax levies is recognized annually
as explained under ''Property Tax Revenue Recognition ''.
Scheduled and actual debt service tax levies for special assessment bonds
were and are scheduled to be as follows:
YEAR OF
LEVY /COL LECTION SCHEDULED ACTUAL
1975/197 $ 75,300 $ 75,300
1976/1977 79,300 79,300
1977/1978 80,300 80,300
1978/1979 79,300 79,300
1979/1980 88,800
1980/1981 88,400
1981/1982 90,900
1982/1983 89,300
1983/1984 89,800
1984/1985 87,300
1985/1986 79,000
1986/1987 77,200
1987/1988 76,400
1988/1989 79,800
1989/1990 77,700
1990/199 63,700
1991/1992 61,500
1992/1993 64,700
1993/1994 62,300
1994/1995 6o,000
1995/ 57,700
1996/1997 64, 200
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANC STA
DECEMBER 31 , 1978 - - --
NOTE 1 - SUMMAR OF S I G N I F I C A N T ACCOUNTING P O L I C I E S - CONTINUED
BUDGETARY DATA
The City Council adopts an annual budget for the general government opera-
tions of the City on an annual basis. During the budget year supplemental
appropriations and deletions are or may be authorized by the City Council.
The amounts shown in the financial statements as "Budget" represent the
original budgeted amounts plus all revisions made during the year and /or
for the year. Also, the amounts shown as "Budget" may reflect cash basis
budgets and /or modified accrual basis budgets.
ENCUMBRANCES
The City does not follow the optional encumbrance method of accounting in
the governmental fund types. Major fund balance appropriations at December
31, 1978 are shown on the various balance sheets as segregations of the
fund balance.
METROPOLITAN WASTE CONTROL COMMISSION (M.W.C.C.)
During 1971, the City transferred its sanitary sewer interceptor lines to
the M.W.C.C. (formerly the Metropolitan Sewer Board) in exchange for certain
"credits" to be allowed against current use billings over a 30 -year period.
The M.W,C.C. current: use charges include an allowance for the redemption
of the previously allowed "credits" on a service area basis.
The City follows the accounting policy of charging the sewer operations with
the net amount of the M.W.C.C, current use charges and of recognizing the
M.W.C.C. adjustments in the year that they are determined by the M.W.C,C.
NOTE 2 - During 1918 the National Council on Governmental Accounting issued for public
comment its exposure draft "Governmental Accounting, Auditing and Financial
Reporting - Restatement Principles ". Also during 1978 the Minnesota Legisla-
ture passed the City Financial Reporting Act of 1978. Also in 1978, the
Minnesota Office of the State Auditor issued its Minimum Reporting Requirements
for City Financial Statements.
The effect of these three documents and events was to substantially change
the financial accounting and reporting requirements for the City of Oak Park
Heights. Prior to 1978 the City's annual financial report reflected a mix
of cash basis and non -cash basis financial statements, depending upon the
requirements of the City Council and Administration. The 1978 annual financial
report reflects the financial statements of the various funds and account
groups of the City presented in accordance with generally accepted accounting
principles, and in accordance with the above documents.
Si nificant cha front past g eneral accepted accounti principles are
g g r .,.,. g�.._. P J p
as follows:
1. Operating statements for the governmental funds (general, special revenue,
capital projects and special assessment funds) are presented on the
modified accrual basis (see Note 1) rather than the cash basis as was
utilized in 1977 and all prior years.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANC I A_L STATE MENTS_
DECEMBER 31 1978 T�
NOTE 2 — CONTINUED
2. The governmental type funds, appropriations are classified as a segment
of the fund balance, rather than as separate reserves as were utilized
in 1977 and all past years.
3. Enterprise funds equity appropriations or contributions are classified
as a segment of the fund equity rather than as separate reserves as
were utilized in 1977 and all past years.
4. Combined operating statements for all governmental funds (general,
special revenue, capital projects, and special assessment funds) and
all proprietary funds (water and sewer enterprise funds) are presented
in the financial statements.
5. Future scheduled tax levies on special assessment bonds are not shown
as an asset of the special assessment fund. These tax levies are
recognized as revenue during the year in which the tax levies are
collected or realized.
The effects of the above changes are mainly changes in the format and manner
of reporting the financial position and results of operations of the various
funds of the City. However, changes in the measurement of financial position
of the special assessment fund types due to the deletion of certain scheduled
future tax levies from re assets resulted in a new decrease to fund
balances as of January 1, 1978 totaling $635,694. The fund balance of the
Capital Projects Fund changed by $78,975 due to a reclassification of
deferred income.
NOTE 3 — COM BINED FINA NCIAL STATEM
The combined financial statements contained in this annual financial report
are pre, „anted for informational purposes only. The reader is cautioned that
these combined statements may represent a combining of unlike purpose funds
and cannot be construed to be indicative of the overall financial position,
nor overall results of operations, nor overall changes in financial position
of the City. Additionally, certain information contained in the fund,
combining fund and account group financial statements may not be disclosed
in the combined financial statements.
NOTE 4 — All bond issues outstanding at December 31, 1978 are backed by the full faith
and credit of the City. Outstanding balances at December 31, 1978, principal
payments due in 1979 future interest to the maturity of each issue, final
due date, and, other pertinent data is presented in the Combined Statement
of Indebtedness.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FIN ANCIAL STATEMENTS
DECEMBER 31, 1978
NOTE 5 — City employees are covered under the Minnesota Public Employee's Retirement
Association and /or the Federal Social Security Program. The City's portion
of any unfunded accrued liability (if any) for these programs is undeterminable
at December 31, 1978. City contributions to all pension plans for 1978
were as follows:
P.E.R.A. $ 11,882
F.I.C.A. 3,028
Total
NOTE 6 — ACCRUED S ICK AND VACATION PAY
The City does not record the liability for vacation and sick pay earned by
employees as such benefits accrued, but rather charges expenditures when
employees take vacation or use sick time. Generally accepted accounting
principles do not require the accrual of liability for vacation or sick
pay in the City's funds. Total accumulations were not material at December
31, 1918.
NOTE 7 — CONTINGENT LIABILITIE
At December 31, 1978 the City was a defendant in certain lawsuits. It is
expected that the final settlements of these suits will not have a material
adverse effect on the financial statements of the City.
CITY OF' OAK PARK HEIGHTS, MINNESOTA EXHIBIT 1
INJERFUND AUD ADJUSTM
DECEMBER 31, 1978 —
DUE FROM DUE TO
FUND TITLE OTHER FUNDS OTHER FUNDS
G.O. Bonds of 1967 and 1968 $ 2,680.95
Storm Sewer Bonds of 1971 338.65
G.O. Bonds of 1976 $ 49.55
General Fund 2,970.05
To reclassify County tax collections
G.O. Bonds of 1967 and 1968 29.12
Storm Sewer Bonds of 1971 81.12
Consolidated Construction Fund 378.24
G.O. Bonds of 1976 488.48
To reclassify special assessment collections
G.O. Bonds of 1978 56,649.12
Lawson Grant Park Improvements 56,649.12
To transfer Construction Costs to the Capital
Project Fund
G.O. Bonds of 1977 36,331.63
General Fund 36,331.63
To finance Construction Costs not otherwise financed
Lawson Grant Park Improvements 80,000.00
Revenue Sharing 25,000.00
General Fund 55,000.00
To transfer matching amounts
G.O. Bonds of 1967 and 1968 59,100.00
G.O. Bonds of 1977 9,000.00
G.O. Bonds of 1978 42,600.00
G.O. Bonds of 1976 7,500.00
To reclassify connection charges
Totals 5i -11 . 2 35,558 .1
CITY OF OAK PARK HEIGHTS, MINNESOTA
CONSTRU COSTS BY PROJECT
FOR THE YEAR ENDED DECEMBER 31, 1978
CONTRACTOR ENGINEERING
CAPITAL PROJECTS FUND
Lawcon Grant Park Improvements 51 410 $
SPECIAL ASSESSMENT FUNDS
$100,000 G.O. Bonds of 1977:
1977 Sewer and Water Extension and
1978 Street Improvements $244, 2
$200,000 G.O. Bonds of 1978:
Brekke Heights ; #2 $157,708 $ 19,670
Rayrnie Johnson Estates 89 10, 398
Total $200,000 Bond Fund $247 ,468 1_30,
1978 Improvements o-- 86o
Total Special Assessment Funds �4�1;
j
EXHIBIT 2
LEGA L EXPENDITURES
FISCAL TOTAL CURRENT PRIOR
EAS EM E N TS OTHER COSTS YEARS YEARS
1 2 Oz
$ 26 ,971 S — o — 273,023 $i56,6o8 1116
$ 650 $ 872 $178,900 $178,900
VcL4 461 10 0,963 100,963 _ --
_ 994 $ 1 L333 27 9,86 3 5279,863 $ — 0 —
$_= $ 86o $ 86 $ _0_
—$? 6 X31 X3_746 $101_.x.33'_ $116.
CITY OF OAK PARK HEIGHTS, MINNESOTA
SCHEDULE OF D - 1 S PAY U NTI L MAT URITY
------------- - - - - --
DECEMBER 31 , 1 - -- - -__
G.O. STORM
SEWER
G.O. BONDS IMPROVEMENT $249 ,000
OF 1967 BONDS G.O. BONDS
AND 1968 OF 1971 OF 1976
Bonds Payable $1 $130,000 $215,000
Future Interest Payable 5 70,625 46,835 LE1,730
Totals _$1,-_6 625 lZoo,835
Year of Maturity:
1979 $ 92,185 $ 16,740 $ 45,170
1980 100,355 16,260 43,700
1981 98,045 15,760 42,160
1982 95,735 15,250 40,550
1983 93,385 14,730 18,870
198 91,035 14,200 23,120
1985 88,655 13,660 22,100
1986 9 13,115 21,060
1987 88,665 12,560
1988 86,055 11,995
1989 88,445 11,42.5
1990 85,585 10,855
1991 82,690 10 ,285
1992 79,795
1993 81,900
1994 78,770
1995 75,640
1996 72,510
1997 69,380
1998 2 5,520
Totals _ 1.6 _ 62 5 � 1 U-3 _ 230_
EXHIBIT 3
$100,000
IMPROVEMENT $100,000 $100,000
'BONDS G.O. IMPROVEMENT G.O. IMPROVEMENT
OF 1977 BONDS OF 1978 BONDS OF 1978 TOTAL
$100,000 $100,000 $100,000 $1,740,000
13,500 22,000 22,000 _ _11 6 ,690
$113 5122 00 5122,0002 _ 4 5 6.690
$ 24,500 $ 5,500 $ 5,500 $ 189,595
23,600 25,500 25,500 234,915
22,700 24,400 24,400 227,465
21,800 23,300 23,300 219,935
20,900 22,200 22,200 192,285
21,100 21,100 170,555
124,415
125,450
101,225
98,050
99,870
96,440
92,975
79,795
81,900
78,770
75,640
72,510
69,380
25,
_ 1 3, ? 220 00 _�l 22 000 _? �E 16.62
CITY OF CA PARK HEIGHTS, MINNESOTA EXHIBIT 4
S "f FO R DE POS I
DECEMBER 31, 1978
WASHINGTON FIRST
FEDERAL OAK PARK NATIONAL COSMOPOLITAN
SAVINGS HEIGHTS OF OF
AND L OAN STATE BANK STILLWATER STILLWATER
COLLATERAL REQUIREMENTS:
Demand Deposits $ 90,3
Time and Savings Deposits $4 _ 6 14,914 ,� 7, 894 157
Total Deposits $ 438,200 $ 705,223 $ 7,894 $ 157,762
Less: F.D,I.C. Insurance (100 ^ 140 000) 7,894) 100,000
Amount Requiring
Collateral $ 388,200 $ 565,223 $ — $ 57,762
At Percent Rate X 11 0% X 110 X 110 X 110
COLLATERAL REQUIRED — 110% $ 427,02.0 $ 621 $ — $ 63,539
COLLATERAL PROVIDED _ 457, 174 810,0 300,000 350,0
EXCESS COLLATERAL __ 30 " l � 188_2 530 00
ASSI GNED BY O DEPOSIT WITH AM OUNT __
Washington Federal Savings and Loan Washington Federal �_ 45
Oak Park Heights State Bank Marquette National $ 100,000
Northwestern National 335,000
American National 375,000
� 810, 000
First National Bank of Stillwater First National of Minneapolis 300,000
Cosmopolitan State Bank of Stillwater Northwestern National of
Minneapolis 350,000
i
CITY OF OAK PARK HEIGHTS, MINNESOTA EXHIBIT 5
INSURANCE IN FORCE
DECEMBER 31, 1978
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
Contractual 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 50,000
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
CITY OF OAK PARK HEIGHTS, MINNESOTA EXHIBIT 6
TAXABLE VALUATIONS, TAX LEVIES AND MIL RATES
1977 1978
TAXABLE VALUATIONS:
City of Oak Park Heights:
Real Estate $32,281,158 $33,699,0.22
Personal Property 595,759 633,756
Total $32,87 $34,332,778
Fiscal Disparity:
Distribution 91,485 127,388
Totals $32,_968,402 $34,460,166
TAX LEVIES:
Year of Levy 1977 1 97 8
Year of Collection 1978 1979
MIL MIL
LEVY RATE LEVY RATE
TAXES LEVIED:
Revenue $221,590 6.74 $229,137 6.68
Bond and Interest 80 2.46 78,068 2.30
Totals X302 , 467 9.20 38