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HomeMy WebLinkAboutAnnual Financial Report CITY OF OAK PARK HEIGHTS, MINNESOTA ANNUAL FINANCIAL REPORT DECEMBER 31, 1981 CITY OF OAK PARK HEIGHTS, MINNESO`T'A TABLE OF CONTENTS Organization Auditor's Report 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 Condensed Combined Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual - General and Special Revenue Fund Types Statement 3 Condensed Combined Statement of Revenue, Expenses and Changes in Retained Earnings - Proprietary Fund Type Statement 4 Condensed Combined Statement of Changes in Financial Position -- Proprietary Fund Type Statement 5 Combined Schedule of Indebtedness Statement 6 Fund And Account Group Statements General Fund: Balance Sheet Statement 7 Statement of Revenue, Expenditures and Changes in Fund Balance -- Budget and Actual Statement 8 Special Revenue Fund: Balance Sheet Statement 9 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Statement 10 Capital Project Funds: Balance Sheet Statement 11 Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 12 CITY OF OAK PARK HEIGHTS, MINNESOTA TABLE OF CONTENTS Special Assessment Funds: Combining Balance Sheet Statement 13 Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 14 Enterprise Fund: Balance Sheet Statement 15 Statement of Revenue, Expenses and Changes in Retained Earnings Statement 16 Statement of Changes in Financial Position Statement 17 Trust and Agency Funds: Combining Statement of Changes in Assets and Liabilities Statement 18 Statement of General Fixed Assets Statement 19 Notes to Financial Statements Supplementary Financial Information Interfund Audit Adjustments Exhibit 1 Construction Costs - By Project Exhibit 2 Debt Service Payments To Maturity: Special Assessment Bonds Exhibit 3 Revenue Bond Exhibit 4 Securities for Deposit Exhibit 5 Insurance in Force Exhibit 6 Future Scheduled Tax Levies -° Special Assessment Bonds Exhibit 7 Taxable Valuations, Tax Levies and Mill Rates Exhibit 8 CITY OF OAK PARK HEIGHTS, MINNESOTA ORGANIZATION December 31, 1981 Term Expires Mayor: Frank SommerFeldt (Appointed) December_ 31, 1982 Council members: William Westphal December 31, 1982 John Lang December 31, 1982 Richard Seggelke December 31, 1984 Barbara O'Neal December 31, 1984 Clerk - Treasurer: LaVonne Wilson Appointed CITY OF OAK. PARK HEIGH`T'S, MI NNESO!'A CONDENSED COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1981 Assets Cash and investments Accrued interest receivable Accounts receivable Due from other funds Due from other governmental units Due from State (Note 2) Due from developers Prepaid expenses Connection charges receivable Taxes receivable - net Special assessments receivable Amount to be provided Fixed assets -° net Restricted assets: Cash and investments Total assets Liabilities And Fund Equity Liabilities: Accounts payable Salaries payable Accrued interest Due to other governmental units Due to other funds Refund payable Meter deposits Contracts payable .Bonds payable Total liabilities Fund equity: Investments in general fixed assets Contributions from property owners net Retained earnings: Undesignated Fund balance: Designated Undesignated Total fund equity Total liabilities and fund equity $223,38 $ 78,747 $ 27,270 $1,471,202 $ 36,034 $ 89 1,433 2,822 157 7,662 1,183 1,385,000 40,446 $ -0- $ -0- 1,393,934 78,747 27,270 77,268 182,939 182,939 _ 78,747 27,270 77 $223,385 $ 78,747 $ 27,270 $1,471,20 Governmental Fund Types Special Capital Special General Revenue Project Assessments $179,115 $ 67,599 $ 27,270 $ 995,343 5,629 _ 3,888 7,432 11,148 7,191 31,139 1,199 3,120 6,929 31,991 494 58 348,488 72,571 Fund equity: Investments in general fixed assets Contributions from property owners net Retained earnings: Undesignated Fund balance: Designated Undesignated Total fund equity Total liabilities and fund equity $223,38 $ 78,747 $ 27,270 $1,471,202 $ 36,034 $ 89 1,433 2,822 157 7,662 1,183 1,385,000 40,446 $ -0- $ -0- 1,393,934 78,747 27,270 77,268 182,939 182,939 _ 78,747 27,270 77 $223,385 $ 78,747 $ 27,270 $1,471,20 CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 1 Fidiciary Proprietary Fund Ty Account Group _ Totals (Memorandum Only)_ Fund Type Trust and General December 31, Enterprise Agency Fixe Assets 1981 1980 (Unaudited) $ 213,805 $ (32,529) $1,450,603 $1,486,674 32,529 32,529 6,737 33,456 39,085 33,001 608 11,928 81,693 18,339 31,082 32,338 4,734 14,783 85,082 5,958 5,958 3,948 31,991 30,892 552 3,692 348,488 336,758 72,571 202,748 2,008,370 $532,063 2,540,933 2,402,451 _ 130,197 $2,262,697 $ 4,734 $5 32,063 $4 ,600,098 $4,834,955 $ 2,417 $ 846 $ 39,386 $ 35,736 140 1,573 1,114 4,050 4,050 4,050 15,439 18,261 15,765 221 3,888 11,928 81,693 1,183 3,286 45,633 45,633 45,083 80,641 200,000 1,585,000 1,7 2 67,900 4,734 $ --0- 1,707,014 2,027,36 532,063 532,063 337,573 1,752,186 1,752,186 1,860,226 242,611 242,611 225,464 183,285 256,677 _ 182,93 127,647 1,99 -0- 532 2 ,893,084 2,807,587 $2,26 $ 4, 734 $532 ,063 $4 ,600,0 98 $4 ,834,95 5 The accompanying noises are, an �..nt:.egr_a'_ : part , of t,�ese `inanr.�_�. ._ CITY OF OAK PARK HEIGHTS, MINNESOTA CONDENSED COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL, FUND TYPES For The Year Ended December 31, 1981 Exp�ndituresm Special Current: General Revenue Revenue: 144,033 17,243 General property taxes $386,515 Intergovernmental revenue 130,494 $ 51,862 Licenses and permits 16,263 Fines and forfeits 7,576 Interest on investments 5,019 6,132 Charges for current services 329 Special assessments Connection charges Other revenue 4,511 Total revenue 550,707 57, 994 Exp�ndituresm Current: General government 144,033 17,243 Public safety 170,733 Streets and highways 43,928 Sanitation 63,586 Recreation 54,439 Capital outlay 2,836 36,990 Debt service: Interest Paying agent fees Construction costs Total expenditures 479,555 54,233 Revenue over (under) expenditures 71,152 3,761 Other increases (decreases): Transfers from other funds 6,640 Transfers to other funds (22,500) (75,000) Changes in amount to be provided Total other increases (decreases) ( 15,860 ) (75,000 Net increase (decrease) in fund. balance 55,292 (71,239) Fund balance -- January 1 127,647 149,986 Fund balance - December 31 $182,939 $ 78,747 CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 2 The accompanying notes are an integral part of these financial statements. Totals (Memo Only) Capital Special December 31, _ Project As sessment 1981 1980 $ 44,609 $ 431,124 $ 359,664 3,747 186,103 201,364 16,263 13,423 76,665 7,576 2,722 $ 3,051 167,659 181,861 122,319 48,615 18,265 329 7,864 48,61 37,082 37,082 270,008 (45,564 157 ,727 187,076 126,883 22,500 4,511 12,736 3,0 253,0 864,849 1,116 ,983 The accompanying notes are an integral part of these financial statements. 161,276 119,501 170,733 159,808 43,928 45,869 63,586 58,534 54,439 44,209 39,826 25,133 76,665 76,665 88,315 440 440 503 48,615 18,265 66,88 _ 240,691 48,61 95,370 677,7 782,563 (45,564 157 ,727 187,076 334,420 22,500 29,140 .53,590 (6,640) (104,140) (145,028) (130,176 _ (130,176 (285,260 15,860 (130,176 (205,176 (376,698 (29,704) 27,551 (18,100) (42,278) 56,974 49,717 384,324 426,602 $ 27,270 $ 77,268 $ 366,2.24 $ 384,324 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA CONDENSED COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL AND SPECIAL REVENUE FUND TYPES For The Year Ended December 31, 1981 General Fund Over (Under) Budget Actual Budg Revenue: General property taxes $395,818 $386,515 $ (9,303) Intergovernmental revenue 102,487 130,494 28,007 Licenses and permits 16,515 16,263 (252) Fines and forfeits 7,576 7,576 Interest on investments 10,000 5,019 (4,981) Charges for current services 329 329 Other revenue 4,511 4,511 Total revenue 524,820 550,707 2 5,887 Expenditures: Currents General government 121,220 144,033 22,813 Public safety 161,850 170,733 8,883 Streets and highways 48,750 43,928 (4,822) Sanitation 49,000 63,586 14,586 Recreation 51,500 54,439 2,939 Capital outlay 5,000 2,836 (2,164 Total expenditures 437, 479,555 42,235 Revenue over (under) expenditures 87,500 71,152 (16,348 Other increases (decreases): Transfer from other funds 6,640 6,640 Transfer to other funds (22,500 (22,500 _ Total other increases (decreases) (22,50 (15,860 6,6 40 Net increase (decrease) in fund balance $ 65,000 55,292 $ (9,708 Fund balance - January 1 127,647 Fund balance - December 31 $182,939 CI'T'Y OF' OAK PARK HEIGHTS, MINNESOTA Special R Statement 3 Over Over (Under) (Under) 1980 Budget Actual Budget Budget Actual Budget A ctua l $ 43,000 $ 51,862 $ 8,862 5,500 6,132 48,500 57,994 632 9,494 1981 40,740 17,243 (23,497) ( Memorandum 161,276 (684) 117,583 Only) $395,818 $386,515 $ (9,303) $276,402 145,487 182,356 36,869 171,621 16,515 16,263 (252) 13,423 45,869 7,576 7,576 2,722 15,500 11,151 (4,349) 8,702 329 329 7,864 54,439 _ 4,511 4,511 2,1 8_8 57 3,320 608,701 35,3 482,922 40,740 17,243 (23,497) 161,960 161,276 (684) 117,583 161,850 170,733 8,883 159,808 48,750 43,928 (4,822) 45,869 49,000 63,586 14,586 58,534 51,500 54,439 2,939 46,127 43,00 36,990 (6,010 48 ,000 39,826 (8,174 _25, 83,740 54,233 (29,50 521,060 533, 12,728 453,054 (35,240 3,761 39 ,001 52,260 7 4,913 22,653 29,8 6,640 6,640 ( (75,000 (97,500 (97,500 (53,590 (75,000 (75,000 (9 7,500 ) (90,860 6,640 (47,500 $(110,240 (71,239) $ 39,001 $( (15,947) $ 29,293 (17,632) 149,986 277,633 295,265 $ 78,747 $261,686 $277,633 The accompanying notes are an integral. part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA CONDENSED COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPE For The Year Ended December 31, 1981 Revenue: Customer billings Penalties Total operating revenue Expenses: Personnel services Contractual services Fixed charges Materials and supplies Depreciation: On purchased assets On contributed assets Total operating expenses Revenue over (under) expenses Add: Non - operating revenue: Interest on investments Plumbing permits Sewer availability charge fees Refunds and reimbursements Other Total non - operating revenue Deduct: Non - operating expenses: Interest Paying agent fees Refunds and reimbursements Total non - operating expenses Net (loss) Other increases (decreases): Credit arising from transfer of depreciation to contributions from property owners Transfer from Capital Project Fund Transfer from Special Revenue Fund Increase in contributions Total other increases (decreases) Net increase in retained earnings Statement 4 Totals December 31, 1981 _ 1980 $101,268 $ 90,200 1,388 1,080 102,656 91,280 15,967 16,314 19,644 15,015 55,692 28 1,736 (263) 3,492 2,740 41,340 38,699 137,871 100,8 (35,215 (9, 589) 15,538 5 112 352 39 185 756 725 41,340 6 16,445 7,363 5,265 50 108 5,423 -0- ( 24,193 ) (2,226 41,340 38,699 91,438 75,000 (75,000 (91,438 41,340 38,699 17,147 36,473 Retained earnings - January 1 225,464 188,99 Retained earnings - December 31 $242,611 $225,464 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MI ;NESOTA Statement 5 CONDENSED COMBINED STATEMENT OF CHANGES It�i FINE,NCIAL POSITION PROPRIETARY FUND TYPE For The Year Ended December 31, 1981 Uses of financial resources: Purchase of fixed assets 130,524 240,448 Designation of restricted assets 130,197 Bond reduction _1 0,000 _ Total uses 140,524 370, 645 Net increase (decrease) in working capital $ 85,312 $(43,060) Components of increase (decrease) in working capital: Tota ls_ Cash and investments December 31, Accounts receivable 1981 198 Sources of financial resources: (3,114) (8 Operations: (30,309) 12,836 Net (loss) $(24,193) $ (2,226) Expenses not requiring outlay of (603) 1,656 working capital -- depreciation 44,832 41 ,439 Total sources from operations 20,639 39,213 Proceeds from issuance of bond indebtedness 16 196,934 Transfer from other funds 75,000 91,438 Reduction in restricted assets 130,197 (1,645) Total sources 225,836 327,5 Uses of financial resources: Purchase of fixed assets 130,524 240,448 Designation of restricted assets 130,197 Bond reduction _1 0,000 _ Total uses 140,524 370, 645 Net increase (decrease) in working capital $ 85,312 $(43,060) Components of increase (decrease) in working capital: Cash and investments $ 51,384 $ 10,642 Accounts receivable 8,958 (554) Due from other governmental units (3,114) (8 Due from other funds (30,309) 12,836 Due from County (546) 1,667 Accounts payable (603) 1,656 Accrued interest (4,050) Due to other governmental units (5,926) (6,394) Salaries payable 16 (59) Due to other funds 4,858 17,209 Meter deposits (550) (1,645) Due from M.W.C.C. 2,010 3,316 Contract payable 69,134 (69,134) Bonds payable (10,000 Net increase (decrease) in working capital $ 85,312 $ (43,060 ) The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS December 31, 1981 Total Indebtedness See Note 8 for industrial revenue act disclosure. Final Net Payment Interest Dated Due 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 4.60 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 9/1/84 5.50 General Obligation Improvement Bonds of 1978 11/1/78 11/1/84 5.50 General Obligation Improvement Bonds of 1979 3/1/79 3/1/84 6.00 Total special assessment bonds Revenue Bonds: General Obligation Water and Sewer Bonds of 1980 10/1/80 10/1/94 7.50 Total Indebtedness See Note 8 for industrial revenue act disclosure. CITY OF OAF: PARK HEIGHTS, MINNESOTA Statement 6 The accompanying notes are an integral. part of these financial statements. Bonds � Principal Interest Authorized� Retired Outstanding Due Due And Issued To Date At 12/31/81 I n 19 In 1982 $ 825,000 $260,000 $ 565,000 $ 30,000 $ 26,235 490,000 100,000 390,000 20,000 19,500 173,000 73,000 100,000 10,000 5,250 249,000 139,000 110,000 35,000 5,550 100,000 60,000 40,000 20,000 1,800 100,000 40,000 60,000 20,000 3,300 100,000 40,000 60,000 20,000 3,300 100,000 40,00 6 0,00 0 _ 20,000 --.3 2,137,000 75 2,000 ^ 1, 385,000 _ 175,000 67 ,935 200,000 200 ,000 10,000 16,2 $2,33 7,000 $752, $1,585 $185,00 $ 84,135 The accompanying notes are an integral. part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA GENERAL FUND BALANCE SHEET December 31, 1981 Statement 7 Liabilities And Fund Balance Liabilities: Accounts payable $ 36,034 $ 32,217 Salaries payable 1,433 958 Due to other governmental units 2,822 6,252 Due to other funds _ 157 14,894 Total liabilities 40, 446 5 4,321 Fund balance: Undesignated 182,939 127,647 Total fund balance 182, 939 127,647 Total liabilities and fund balance $223,385 $181,9 The accompanying notes are an integral part of these financial statements. Totals December 31, 1981 1980 Assets Cash and investments $179,115 $164;081 Accounts receivable 777 7,957 Due from other governmental units 1,000 Dur from State 31,139 Due from developers 3,120 Accounts receivable - certified 4,852 Taxes receivable: Delinquent 10,201 4,413 Allowances and deferments (10,201) (4,413) Due from County 494 2 Due from other funds 3,888 6,090 Total assets $223,385 $181,968 Liabilities And Fund Balance Liabilities: Accounts payable $ 36,034 $ 32,217 Salaries payable 1,433 958 Due to other governmental units 2,822 6,252 Due to other funds _ 157 14,894 Total liabilities 40, 446 5 4,321 Fund balance: Undesignated 182,939 127,647 Total fund balance 182, 939 127,647 Total liabilities and fund balance $223,385 $181,9 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 8 Page 1 GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1981 1981 Over (Under) 1980 Budget Actual _J�udget_ Actual Revenue: (Memorandum Taxes: only) Current and delinquent $395,818 $385,301 $(10,517) $275,664 Other 1,214 1,214 738 Total general property taxes 395,818 386,515 (9,303) 276,402 Intergovernmental revenue: State: Homestead credit 28,487 28,487 20,174 Local government aid 74,000 75,994 1,994 79,564 Machinery aid 418 418 431 Reduced assessment aid 4,077 4,077 Diseased tree removal aid 15,016 Police aid 9,751 9,751 9,037 Metro council planning grant 3,615 3,615 Surcharge rebate 1,394 1,394 Mini energy audit 1,200 1,200 Federal: 701 Grant 5,558 5,558 1,000 Total intergovernmental revenue 102,487 130,494 28,007 125,222 Licenses and permits 16,515 16,263 (252) 13,423 Fines and forfeits 7,576 7,576 2,722 Interest on investments 10,000 5,019 (4,981) 3,359 Charges for current services 329 329 7,864 Refunds and reimbursements 2,625 2,625 1,188 Sale of property 1,344 1,344 Donations 542 542 1,000 Total revenue 5�T-4,826 550,707 25,887 431,180 Expenditures: General government: Mayor and council: Current 53,400 50,907 (2,493) 47,728 Elections: Current 1,319 City clerk: Current 42,600 39,657 (2,943) 32,597 Capital outlay 127 127 Planning and zoning: Current 7,000 20,947 13,947 17,816 City hall: Current 6,220 8,324 2,104 4,748 Capital outlay 1,538 1,538 Engineering: Current 3,000 6,323 3,323 85 General management: Current 9,000 17,875 8,875 13,290 Total general government $121,220 $145,698 $ 24,478 $117,583 The accwpanyinq notes are an integral part of these financial. statements. CITY OF OAK PARK HEIGHTS, MINNESOTA GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1981 Statement 8 Page 2 The accompanying notes are an integral part of these financial statements. 1981 Over (Under) 1980 Budget Actual Budget Actual Expenditures: (Continued) (Memorandum Public safety: Only) Police department: Current $153,000 $163,835 $ 10,835 $150,758 Capital outlay 392 392 22,956 Fire protection: Current 8,500 6,554 (1,946) 8,387 Animal control: Current 350 _ 344 (6 663 Total public safety 161,850 171,125 9,275 182,764 Streets and highways: Streets and alleys: Current 16,000 13,598 (2,402) 21,194 Snow and ice removal: Current 11,000 9,042 (1,958) 6,670 Street lighting: Current 20,000 20,237 237 16,805 Arboreous: Current _ 1,750 _ _ 1,051 (69 9_) _ 1,200 Total streets and highways � 48,750 43,928 (4,822 45, 869 Sanitation: _ Refuse collection and disposal: Current 39,000 46,140 7,140 35,664 Tree removal and planting: Current 10,000 _17,446 7,446 22 Total sanitation 49 ,000 63, _ 14,586 58,534 Recreation: Parks, playgrounds and rinks: Current 51,500 54,439 2,939 44,209 Capital outlay 5,000 779 (4,221 Total recreation 56,500 55 ,218 (1,282 _ 44,209 Total expenditures $437,320 $479,5 $ 42,235 $4 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 8 Page 3 GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1981 Revenue over (under) expenditures Other increases (decreases); Transfer from Revenue Sharing Fund Transfer to Capital Project Fund Transfer from Capital Project Fund Total other increases (decreases) Net increase (decrease) in fund balance Fund balance - January 1 Fund balance - December 31 The accompanying notes are an integral part of these financial statements. 1981 Over (Under) 1980 _Budget Actual Budget Actual (Memorandum Only) $ 87,500 $ 71,152 $(16,348) $(17,779) 6,090 (22,500) (22,500) (47,500) 6,640 6,640 (22, (15,860) 6,640 (41,410) $ 65,000 55,292 $ (9,708) (59,189) 127,647 186,836 $182,939 $127,647 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -- FEDERAL REVENUE SHARING BALANCE SHEEP December 31, 1981 Assets Cash and investments Due from other governmental units Due from other funds Total assets Liabilities And Fund Balance Liabilities: Accounts payable Due to other funds Total liabilities Fund balance: Designated for committed contracts Designated for ensuing years budget Total fund balance Total liabilities and fund balance Statement 9 Totals Dece mber 31, 1981 1980 $ 67,599 $130,703 11,148 13,571 12,711 $ 78,747 $156, $ 909 6, 090 $ -0-° 6 19,020 _ 78,747 130,966 78,747 149,9 $ 78, 747 $1 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 10 SPECIAL REVENUE FUND - FEDERr,L REVENUE SHARING STATEMENT OF REVENUE, EXPENDITURES A_.'D CHANGES IN FUND BALANCE -- BUDGET AND ACTUAL For The Year Ended Decelber 31, 1981 _ 1981 Over (Under) 1980 Budget Actual Budget Actual Revenues (Memorandum Intergovernmental: Only) Federal grants $ 43,000 $ 51,862 $ 8,862 $ 46,399 Interest on investments _ 5,500 6,132 632 5,343 Total revenue 48,500 57, 99= 9,494 51, 742 Expenditures: Current expense 40,7 17,243 (23,497) 1,918 Capital outlay 4 3,000 _ 36, _( 6,010 ) _ 2, 177 Total expenditures 83,740 54,233 (29,507 4,095 Revenue over (under) expenditures (35,240) 3,761 39,001 47,647 Other. (decreases): Transfer to General Fund (6,090) Transfer to Enterprise Fund (7 ( Total other decreases (75,000) (75,000) (6,090) Net increase (decrease) in fund balance $ (71,239) $ 39,001 41,557 Fund balance -- January 1 M 1 49,9 86 108 Fund balance - December 31 $ 7 $149,9 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 11 CAPITAL PROJECT FUND - CAPITAL IMPROVEMENTS BALANCE SHEET December 31, 1981 Totals Assets Cash and investments Total assets Liabilities And Fund Balance Liabilities: Total liabilities Fund balance: Designated for capital. improvements Total fund balance Total liabilities and fund balance December 31, 1981 1980 (Memorandum Only) $ 27,270 $ 56,974 $ 27,270 $ 56,974 $ -0- $ -0- 27,270 56,974 27,270 56,974 $ 27,270 $ 56,974 (1) 1980 included the Lawcon Grant Fund which was closed in 1981. The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 12 The accompanying notes are an integral par;, of these financial statements. CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES FIND CHANGES IN FUND BALANCE December 31, 1981 Totals r Capital Lawcon December 31, Grant 1981 1980 _I mprovements (Meraorandum Revenue: Only) Intergovernmental: Federal grants $ 23,690 Interest on investments $ 3,051 $ 3,051 10,427 Sale of property __ 9,414 Total revenue 3,051 $ - 0- 3,051 4 3,531 Expenditures: Construction costs 46,908 1,7 48,615 53,749 Total expenditures 46,908 1, 707 48,615 53,749 Revenue over (under) expenditures ( 43,857 ) ( 1,70 7) (45,564 (10 Other increases (decreases): Transfer from General Fund 22,500 22,500 47,500 Transfer to General Fund (6,640) (6,640) Transfer to Enterprise Fund _ _ _ (91,438 Total other increases (decreases) 22,500 (6,6 15,8 (43 Net: (decrease) in fund balance (2 "1,357) (8,347) (29,704) (54,156) Fund balance ° January 1 48, 8 ,347 5 6,974 111,130 Fund balance - December 31 $ 2 7,270 $ -0- $ 27 ,270 $ 5.6,974 The accompanying notes are an integral par;, of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA SPECIAL ASSESSMENT FUNDS COMBINING BALANCE SHEET December 31, 1981 Debt Service G.O. Storm Sewer G.O. Bonds Improvement $249,000 $100,000 Of 1967 Bonds G.O. Bonds G.O. Bonds .And 1968 Of 1971 Of 1976 Of 1977 Assets Cash and investments $ 823,665 $ 28,627 $100,708 $ (4,877) Due from other funds 763 34 6,247 Due from other government units Due from State 168 908 123 Due from developers Connection charges receivable 9,234 Taxes receivable: Delinquent 832 690 112 Allowances and deferments (832) (690) (112) Due from County 8 44 6 Special assessments: Delinquent 1,640 36 395 11,777 Deferred 113,894 3,220 15,148 49,236 Due from County 188 Amount to be provided 5, 440 67,131 Total assets $ 9 $100, $122,627 $ 5 6,136 Liabilities And Fund Balance Liabilities: Accounts payable Due to other funds $ 7,405 Refund payable 1,183 Contracts payable Bonds payable $ 955,000 $100,000 $110,000 40,00 Total liabilities _ 955,000 100,000 110,000 48,588 Fund balance (deficit): Designated for: Debt service 12,627 7,548 Committed contracts Construction Total fund balance (deficit) - _ -0- 12 ,627 7,548 Total liabilities and fund balance $ 955 ,000 $100,000 $122 $ 56 ,136 CITY OF OAK PARK HEIGHTS, Mlt'dESOTA Construction Statement 13 $300,000 Storm G.O. Bonds Swager's Sewer Totals Of 1978 Completed Prison 1979 57th Street 8 Drainage D ece mb er 31, Y A nd 19 Const ruction Utili Utilitie Impr Addition Imp 1981 _ 1980 (Memorandum Only) $151,585 $ (244) $(17,494) $ (77,805) $ (788) $ (2,528) $ (5,506) $ 995,343 $ 979,232 168 220 7,432 31,975 7,191 7,191 13,397 1,199 243 3,281 788 2,617 6,929 85,082 22,757 31,991 30,892 1,634 1,266 (1,634) (1,266) 58 852 2,012 496 16,356 12,177 44,410 59,288 46,748 331,944 324,526 188 55 72,571 2 02,748 $196 ,238 $ 83,981 $(10,303 $ $ -0 - - $ 89 $ (5,506) $ $1 $ 89 $ 47 $ 210 $180, _ _`� 180 ,000 J 47 $ -0- 210 $ -0 89 $ -0- $ 89 $ 796 7,662 55,630 1,183 3,286 11,507 1,385,00 .1,560,000 1,393 ,934 1,63 1,219 16,238 36,413 5,789 5,630 83,934 (10,303 (27,270 -- _( 5,506 ) 4 38,298 16,238 83,934 (10,303) (27,270) -0- - _ (5,506 - 77, 268 49,717 $196,238 $ 83 ,981 $(10,303 $ ( 27,060 ) $ -0 $ 89 $ (5,506 $1,471,2 $1,680,936 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA SPECIAL ASSESS` -1ENT FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1981 --.-- S G.O. - Storm Sewer G.O. Bonds Improvement $249,000 $100,000 Of 1967 Bonds G.O. Bonds G.O. Bonds And 1 968 Of 1971 Of 1976 Of 1977 Revenue: _ General property taxes: Current and delinquent $ 6,461 $ 33,583 $ 4,565 Intergovernmental revenue: State: Homestead credit 457 2,484 337 Reduced assessment aid 66 355 48 Total intergovernmental revenue 523 2,839 385 Special assessments: New rolls adopted Connection charges 2,700 Interest on assessments 8,222 283 1,443 $ 4,203 Direct charges to developers (502) Adjustments and other 159 312 Total special assessments 11,081 _ 283 _ 941 4,515 Interest on investments 123,037 582 19,704 Other revenue Total revenue 141,102 37 ,2.87 25,595 4,515 Expenditures: Debt service: Interest 48,045 5,760 7,160 2,700 Paying agent fees 1 5 61 56 Total debt service 48,150 5,810 7,221 2,756 Construction costs Total expenditures 48,150 5,810 7,221 2,756 Revenue over (under) expenditures 92, 31,477 1 8,374 1, 759 Other (decreases): (Decrease) in amount to be provided (92,952 (31,477 (_ 5,747 ) Total other (decreases) (92,952 (31,477 (5,747 -O- Net increase (decrease) in fund balance -0- -0- 12,627 1,759 Fund balance (deficit) - January 1 -0- -0- -0- 5,789 Fund balance (deficit) - December 31 $ -0- $ -0- $ 12,627 $ 7,548 CITY OF OAK PARK HEIGHTS, MININESOTA Statement 14 Construction $300,000 1,032 6, 2,617 1,628 1,0 Storm 2,617 G.O. Bonds 4,37 -0- -0- Swager's Sewer Tota Of 1978 Completed Prison 1979 57th Street 8 Drainage _ _ D_ec_e 31 _ An 1979 Construction Uti lities . _ Improvement Add ition - Improvement - 19 81 198 0_ (Memorandum Only) Only) $ 44,60 $ 8 3,26 2 3,278 6,053 469 3,747 6, 053 127,752 2,700 126,883 $ 6,132 $ 5,402 25,685 25,088 1,812 $ (2,748) $ 6,982 $ 2,617 8,161 119,902 $ 65 _ _ V~ 536 (2,734 65 7,944 (2,748 5,402 6,982 2 ,617 37,082 396,891 24,336 103,190 - ' 158 24,401 7, 944 (2 ,748) 5 ,402 6 ,982 2,617 $ -0 253, 097 589,554 13,000 168 13,168 _ 500 ~ 13,668 10,733 1 Q, 733 5,505 $ 16 ,238 1,628 1,032 6, 2,617 1,628 1,0 6,982 2,617 7,944 (4,376 4,37 -0- -0- -0- -0- -0- -0- 7,944 (4,376) 4,370 -0- 75,990 (5,9 (31,640 -0- $ 83,934 $(10 ,303) $ ( 27,270 ) $ -0- -0- -0- - 0- $ -0- 76,665 88,315 440 503 77,105 88,818 5, 18 r 18 6,942 5,506 95,370 275,760 ( 5,506 ) 157,72 313,794 (130,176) (284,284) -0- (130, (284,284 (5,506) 27,551 29,510 -0- 49,717 20,207 $ (5 ,506) $ 77,2.68 $ 49,717 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA ENTERPRISE FUND BALANCE SHEET December 31, 1981 Statement 15 December 3 1, 1981 1980 Assets Current assets: Cash and investments Due from other funds Accounts receivable: Customers Certified to County Prepaid M.W.C.C. Due from other government units Total current assets Utility plant in service - at cost: Buildings and structures Machinery and equipment Distribution and collection system Totals Less: Allowance for depreciation Construction work in process Net fixed assets Restricted assets: Cash and investments Total assets Liabilities And Fund Equity Current Liabilities: Accounts payable Due to other funds Due to other governmental units Salaries payable Contract payable Accrued interest Meter deposits Bonds payable Total current liabilities Non - current liabilities: Bonds payable Total liabilities Fund equity: Contributions from property owners - net Retained earnings: Undesignated Total fund equity Total liabilities and fund equity $ 213,805 $ 162,421 608 30,917 32,335 1,121 5,958 253,8 502,769 59,357 1,814,734 2,376,860 23,377 1,667 3,948 3,114 225,444 304,576 58,213 1,789,776 2,152,565 (367,990) (323,158) 235,47 2,008,870 2,064,878 130,19 $2,262,6 $2,4 $ 2,417 $ 1,814 221 5,079 15,439 9,513 140 156 69,134 4,050 4,050 45,633 45,083 10,000 77,900 ^ �134,�829 19 200,00 2 67,900 334,829 1,752,186 1,860,226 242,611 225,464 1,994,797 2,085,690 $2,262,69 $2,4 20,519 The accompanying notes are an integral. part of these financial statements. CITY OF OAK PARK HEIGHTS, MliiNESOTA Statement 16 ENTERPRISE FUND STATEMENT OF REVENUE, EXPENSES A% - ,D CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1981 ---.- Water Sewer December 31, Ope rating Op erating 1981 ^ 1980 (Memorandum Revenue: Only) Customer billings $ 50,557 $ 50,711 $101,268 $ 90,200 Penal 708 680 1,388 1,080 Total operating revenue 51,265 51,391 102,656 91,280 Expenses: Personnel services 11,031 4,936 15,967 16,314 Contractual services 14,969 4,675 19,644 15,015 Fixed charges 1,259 54,433 55,692 28,364 Materials and supplies 1,370 366 1,736 (263) Depreciation: On purchased assets 3,359 133 3,492 2,740 On contributed assets 21,057 20,283 41,340 38,699 Total operating expenses 53,045 84,826 137,871 100,869 Operating (loss) $ (1,780) $(33,435) (35,215) _(9,589) Add: Non-operating revenue: Interest on investments 15,538 5,451 Plumbing permits 112 352 Sewer availability charge fees 39 185 Refunds and reimbursements 756 725 Other 650 Total non-operating revenue 16,445 7,363 Deduct: Non-operating expense: Bond Interest 5,265 Paying agent fees 50 Refunds and reimbursements 108 Total non-operating expenses 5,423 -0- Net (loss) (24,193) (2,226) Other increases (decreases): Credit arising from transfer of depreciation to contributions from property owners 41,340 38,699 Transfer from Capital Project Fund 91,438 Transfer from Special Revenue Fund 75,000 Increase in contributions (75,000) (91,438) Total other increases (decreases) 41,340 38,699 Net increase in retained earnings 17,147 36,473 Retained earnings - January 1 225,464 188,991 Retained earnings - December 31 $242,611 $225,464 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 17 EN`.C'ERPRISE FUND STATEMENT OF CHANGES IN FINANCIAL POSITION For The Year Ended December 31, 1981 Sources of financial resources: Operations: Net (loss) Expenses not requiring outlay of working capital - depreciation Total sources from operations Proceeds from issuance of bond indebtedness Transfer from other funds Reduction in restricted assets Total sources Uses of financial resources: Purchase of fixed assets Designation of restricted assets Bond principal -° current portion Total uses Net increase (decrease) in working capital Components of increase (decrease) in working capital: Cash and investments Accounts receivable Due from other governmental units Due from other funds Due from County Accounts payable Accrued interest Due to other governmental units Salaries payable Due to other funds Meter deposits Due from M.W.C.C. Contract payable Bonds payable Net increase (decrease) in working capital Totals December 31 _ 1981 1980 $(24,193) $ (2,226) 44, 20,639 75,000 130,197 41,439 39,213 196,934 91,438 225,836 327,585 130,524 240,448 130,197 _ 10 , 000 _ _ 140,524 3 70,b 45 $ 85,312 $(43,060 $ 51,384 $ 10,642 8,958 (554) (3,114) (8 (30,309) 12,836 (546) 1,667 (603) 1,656 (4,050) (5,926) (6,394) 16 (59) 4,858 17,209 (550) (1,645) 2,010 3,316 69,134 (69,134) (10,000 $ 85,312 $( 43,060 ) The accompanying notes are an integral part of these financial. statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Investment Fund: Assets Cash and investments $ 30,830 Accrued interest receivable 36,035 Total assets $ -o- $ 66,865 Total Agency: Assets Cash and investments Accrued interest receivable Due from developers Total assets Liabilities Due to other funds Due to developers Total liabilities $ 30,830 36,035 Statement 18 $ -0- $ AGENCY FUNDS $ 3,888 COMBINING STATEMENT OF' CHANGES IN ASSETS AND LIABILITIES For The Year Ended December 31, 1981 Balance Balance 1/1/81 Additions Deletions 12/31/81 Developers' Deposits Fund- Assets Due from devlopers $ -0- $ 4,734 $ -0- $ 4,734 Liabilities Due to other. funds $ 3,888 $ 3,888 Due to developers 846 846 Total liabilities $ -0- $ 4,734 $ -0- $ 4,734 Investment Fund: Assets Cash and investments $ 30,830 Accrued interest receivable 36,035 Total assets $ -o- $ 66,865 Total Agency: Assets Cash and investments Accrued interest receivable Due from developers Total assets Liabilities Due to other funds Due to developers Total liabilities $ 30,830 36,035 4,734 $ -0- $ 71,599 $ 3,888 846 C�- $ 4,734 $ 63,359 3,506 $ 66,865 $ 63,359 3,506 -0- $ 66,865 $(32,529) 32,529 $ $(32,529) 32,529 4,734 $ 4,734 $ 3,888 846 $ 4,734 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT OF GENERAL FIXED ASSETS December 31, 1981 Description Land Land improvements Buildings and structures Machinery and equipment Furniture and fixtures Totals (UNAUDITED) Statement 19 Balance Balance 1/1/81 Additions Deletions 12 /31/81 $ 75,000 $ 75,000 $ 26,554 26,554 146,273 166,438 $ 5,000 307,711 102,985 12,753 6,774 108,964 13,315 519 13, 834 $ 337,5 73 $206,264 $ 11,774 $532,063 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1981 Note 1 -° SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the City of Oak Park Heights, Minnesota conform to generally accepted accounting principles as applicable to governmental units except as disclosed below. FUND ACCOUNTING The accounts of the City are organized and operated on the basis of funds and groups of accounts. A fund is defined as a fiscal and accounting entity with a self - balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. BASIS OF ACCOUNTING The modified accrual basis of accounting is foll -jwed by the City for its governmental .funds (General, Special Revenue, Capital Project, and Special Assessment Funds) . Under this method of accounting, revenues are recognized when they become susceptible to accrual - that is, when they become both measurable and available to finance expenditures of the fiscal period. Also, under this method, expenditures are recognized in the accounting period when the liability is incurred, except for: (1) interest on long -term debt which is recognized when due, except for January 1 maturities which are recognized in the previous fiscal period; (2) inventory items which are considered expendi- tures when purchased; and, (3) prepaid insurance and similar services extending over more than one accounting period are considered expenditures in the period of acquisition. The City employs the accrual basis of accounting for its proprietary funds (Enterprise Funds) . Under this method, revenues are recognized in the accounting period in which they are earned and expenses are recognized in the accounting period when incurred if measurable PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the County for collection. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. These taxes are payable (by property owners) by May 31 and October 31 of each calendar year. These taxes are collected by the County and remitted to the City by approximately July 15, and December 15 of the same year. Additionally, delinquent collections (November through February) are remitted to the City each April. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1981 Note 1 ° SUMMARY OF SIGNIFICANT ACCOUNTING POLIC - (Continued) PROPERTY TAX REVENUE RECOGNITION - Continued Taxes on homestead property (as defined by State Statutes) are partially reduced by a homestead credit. This credit is paid to the City by the State in lieu of taxes levied against homestead property. The State :remits this credit in installments each year. The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and homestead credits received by the City are recognized as revenue for the current year. Additionally, taxes collected by the County by December 31 (remitted to the City the following April) and taxes and credits not received at the normal time are .recognized as revenue for the current year. Unpaid delinquent taxes are generally measurable but not available to finance the expenditures of the current year. Accordingly, these taxes are not recognized as revenue until they are collected by the County. Unpaid delinquent property taxes are .reflected in the balance sheets at December 31 subject to a 100% allowance for doubtful accounts and deferred revenue. This accounting practice is at nominal variance with generally accepted accounting principles in that the deferred income position (that part of delinquent taxes expected to be collected over the next several years) technically should be shown separately as a liability. However, this variance is immaterial and the cost of determining this measurement and .reclassification does or could exceed the benefit. Additionally, this variance has no material effect upon the operating statements of the City. 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 in accor- dance with State Statutes. The City usually adopts the assessment rolls when the individual projects are complete or substantially complete. The 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 pre- pay future installments without interest or prepayment penalties. The City recognizes special assessment revenue when it becomes both measurable and available to finance bonded debt. In practice, special assessment prin- cipal is recognized as revenue in the year when the assessment rolls are tablu- lated and adopted by the City Council, and when it is available to finance the related bond issue principal. Special assessment interest is recognized as revenue in the year due, which generally corresponds to the period it is actually earned. CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1981 Note 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued) SPECIAL ASSESSMENT REVENUE RECOGNITION - Continued Once a special assessment roll is adopted, the amount attributed to each par- cel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, after a State Statute determined number of years, the property is subject to tax-forfeit sale and the first pro- ceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of delinquent special assessments. Generally, the City will collect the full amount of its special assessments not adjusted by City Council or court action. Accordingly, no allowance for potentially uncollec -° tible assessments has been provided. LOCAL GOVERNMENT AID REVENUE RECOGNITION Local government aid is provided the City by the State as a shared tax based upon a statutory formula and without restrictions. Payment from the State is generally received during each year for that calendar year. The City recogni- zes local government aid revenue when it becomes both measurable and available to finance current operations. In practice, local government aid is .recognized as revenue as it is received, except as in Note 2. GRANT REVENUE RECOGNITION The City receives various Federal, State and other grants, the purpose of which is to fund specific City expenditures. These revenues are recognized at the time of the specific expenditures. The City also receives Federal Revenue Sharing and other general purpose grants. These grants are recognized as revenues in the period to which the grant applies. CASH AND INVESTMENTS Cash balances from all funds are pooled and invested to the extent available, in authorized investments. Earnings from such investments are allocated to the individual funds on the basis of applicable cash balances available by each of the funds and in accordance with State Statute. Invested amounts totaled $1,454,785 and $1,613,827 at December. 31, 1981 and 1980 respectively. The payment of City bonds is made through various agents (banking institutions). Cash is paid to the paying agents and they in turn pay principal and interest to the various bond holders. Amounts of cash on hand with the paying agent at December 31, 1981 totaling $5,000 is not included in these financial statements. INVENTORIES The original cost of materials and supplies has been recorded as expenditures at the time of purchase. The City does not maintain significant amounts of inventories of materials or supplies. CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1981 Note 1 -- S UMMARY OF SIGNIFICANT ACCOUNTING POLICI -- (Continued) FIXED ASSETS - GENERAL General fixed assets are recorded as expenditures of the governmental 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. The City does not maintain detailed records nor accounting controls over general fixed assets. The amounts presented in the Statement of General Fixed Assets represent amounts accumulated from historical financial reports only, without regard to physical inventories or listings. Note 2 - DELAYED STATE AID PAYMENTS Due to State fiscal difficulties, the 1981 allotment of Local Government Aid was not entirely received during 1981. The deferred payments have been recognized as revenue in 1981 based on the State's assurance that the aid will be paid to the City by February 26, 1982 (Third Special Session Laws, 1981, Chapter 1). Payment of Homestead Credit and Attached Machinery Aid have also been deferred by the State and are recognized as revenue in 1981 in these financial statements. The State aid payments were received by the City on March 1, 1982. The amount of the delayed payments from the State were as follows at December 31, 1981: Local Government Aid $ 20,581 Homestead Credit 10,571 Attached Machinery Aid 139 Reduced Assessment Aid 1,047 Total $ 32,338 Note 3 - FIXED ASSETS - PROPRIETARY FUNDS Fixed assets of the proprietary funds (Water and Sewer) are stated at cost, estimated cost, or in the case of contributions, at fair market value at the time received. Depreciation has been provided using the straight -line method over the estimated useful lives of assets, as follows: Assets Purchased assets: Water Sewer Contributed assets: Water Sewer Totals Depreciable De preciation Lives 1981 1980 5 - 10 years $ 3,359 $ 2,600 5 - 10 years 133 140 50 years 21,057 19,760 50 years 20, 18,939 $ 44,8 $ 41 ,439 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1981 Note 3 - FIXE ASSETS - FUNDS (Continued) Fixed assets of the water and sewer utility operations include the water distribution system and sewage collection system. These systems have been wholly (or substantially) financed by non - operating funds (special assessments, general taxes, Federal and State grants, and other_ sources) and contributed to the sewer and water operating funds. City policy is to finance these assets by the sources indicated rather than by user charges. Accordingly, the water and sewer user rates are not established at levels sufficient to cover depreciation on these assets. Depreciation on these assets is shown in the operating statements; however, the depreciation is eventually transferred against the contribution account rather than retained earnings in accordance with generally accepted accounting principles. Consequently, the contribution account reflects the net book value of contributed assets rather than the original cost of such assets. Note 4 -• BUDGETARY DATA The City Council. adopts an annual budget for the General Fund and those Special Revenue Funds as presented in Statements 8 and 11 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. Note 5 ... ENCUMBRANCES The City does not follow the optional encumbrance method of accounting in the governmental fund types. Major fund balance appropriations at December 31, 1981 and 1980 are shown on the various balance sheets as segregations of the fund balance and consist of: December 31, Descrip 1981 1980 Special Revenue Funds: Designated for committed contracts $ 19,020 Designated for ensuing years expenditures $ 78,747 130,966 Capital Project Funds: Designated for capital improvements 27,270 56,974 Special Assessments: Designated for debt service 36,413 5,789 Designated for committed contracts 5,630 Designated for construction 42,234 _ 38,298 Total governmental fund types $184,664 $25 6,677 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1981 Note 6 -- METROPOLITAN WASTE CONTROL COMMISSION During 1970, the Metropolitan Waste Control Commission (M.W.C.C.) was organized to provide for consolidation of the sanitary sewer collection, treatment and disposal in the seven county metropolitan area surrounding Minneapolis and St. Paul. Previously, these operations were maintained by the city governments on an individual or collective basis. When the M.W.C.C. was formed, existing interceptor sewer lines and treatment facilities were transferred from the cities to the M.W.C.C. in exchange for future credits. The M.W.C.C. finances its operations by user charges to the various cities based upon volume. Included in these user charges are amounts required to liquidate the credits arising from the 1970 transfer identified above. In practice, every city receives annual credits based upon the assets transferred to the M.W.C.C. in 1970 and annual charges (to finance these credits) based upon annual volume. The net amount of these credits is billed to each city as part of its annual user charge for operation and maintenance of the collection, treatment and disposal system. The M.W.C.C. bills the City annually based upon estimated volume and budgeted costs. These billings are later adjusted when actual volume and actual costs are determined. The adjustment to actual is generally determined in the suc- ceeding calendar year and payable, by the City, in the second succeeding calen- dar year. The City follows the accounting policy of recognizing these charges as an expense of the sewer utility operation in the year for which they are billed (for estimated billings) and in the year the adjustments are determined (for adjustments from estimated to actual billings). In addition to the above charges /credits, the City paid the M.W.C.C. reserve capacity deferred charges in 1971 and 1972. These deferred charges are being repaid to the City at nominal amounts per year including interest at approxi- mately 3 -1/2 %. Future credits and deferred charges are not reflected in. these financial statements, as these credits will be offset by annual charges as detailed above. The amount of these credits at December 31, 1981 and 1980 were: Current value credits Debt service credits Deferred charges Totals December 31, 1981 1980 $ 741 $ 780 221,745 237,998 9,856 10,331 $ 232,342 $ 24 9,109 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL, STATEMENTS December 31, 1981 Note 7 -- 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 levied against the benefitting 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 alter- native sources of financing. These future scheduled tax levies are not shown as assets of the special assessment funds at December 31, 1981 nor 1980 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 general obligation special assessment bonds were and are as follows: Note 8 T BONDED INDEBTEDNESS All bond issues outstanding at December 31, 1981 are backed by the full faith and credit of the City, including special bond issues. Outstanding balances at December 31, 1981, principal and interest payments due in 1982, final due date, interest rates, and other pertinent data is presented in the Combined Statement of Indebtedness and /or_ the Statements of Debt Service Payments to Maturity - Exhibits 3 and 4. Percent Levy /Collectio w Schedul Actual Levied 1975/76 $ 75,300 $ 75,300 100.00% 1976/77 79,300 79,300 100.00 1977/78 80,300 80,300 100.00 1978/79 79,300 79,300 100.00 1979/80 88,800 88,800 100.00 1980/81 88,400 48,800 55.21 1981/82 90,900 30,000 33.00 1982/83 89,300 1983/84 89,800 1984/85 87,300 1985/86 79,000 1986/87 77,200 1987/88 76,400 1988/89 79,800 1989/90 77,700 1990/91 63,700 1991/97 370,400 Note 8 T BONDED INDEBTEDNESS All bond issues outstanding at December 31, 1981 are backed by the full faith and credit of the City, including special bond issues. Outstanding balances at December 31, 1981, principal and interest payments due in 1982, final due date, interest rates, and other pertinent data is presented in the Combined Statement of Indebtedness and /or_ the Statements of Debt Service Payments to Maturity - Exhibits 3 and 4. CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1981 Note 8 - BOND IND ° (Continued) The Minnesota Municipal Indus Development Act allows Minnesota cities to issue industrial development bonds for the purpose of financing private development, subject to approval by the State. Under the terms of the bond issues authorized and the requirements of the Minnesota Industrial Development Act, the City has no obligation for the payment of principal or interest other than its interest in the "Industrial Development Project ". Accordingly, this liability (and the related "interest" in the "Industrial Development Project ") have been excluded from these financial statements. The amount authorized and issued at December 31, 1981 is: Description Authorized Issued _ Balance K Mart Corporation $2,000,000 $2,000,000 $1,965,000 Note 9 -- ACCRUED SICK AND VACATION P AY 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 prin- ciples do not require the accrual of liability for vacation or sick pay in the City's funds. Sick pay at December 31, 1931 was $3,200. Accrued vacation pay accumulations was immaterial at December 31, 1981. Note 10 - RETIRE PLA The City participates in contributory pension plans through the Public Employees Retirement Association (P.E.R.A.) under Minnesota Statutes Chapter 353, which covers substantially all employees except those qualifying as tem- porary or seasonal employees and employees covered by other plans (if_ applicable). This plan is a State administered plan and is coordinated with the Federal Social Security Retirement Plan. State Statute requires the City to fund current service pension costs as it accrues. Prior service cost is being amortized over a period of 40 years and is being funded by payments determined as a percentage of gross wages paid by all employers participating in the State Association. The amount of unfunded prior service cost attri- buted to individual reporting entitles is not determinable. City contribu- tions for 1981 and 1980, including amortization of estimated prior service cost is shown below. City contributions for 1981 and 1980 for all pension plans for all City funds were: Description 1981 1980 P.E.R.A. $ 15,800 $ 16,700 F.I.C.A. 4,700 4 ,200 Totals $ 20,500 $ 20,900 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1981 Note 11 - CONTINGEN The City Attorney has indicated that existing and pending lawsuits, claims and other actions in which - the City is a defendent are either covered by insurance; of an immaterial amount; or_, in the judgment of the City Attorney, remotely recoverable by plaintiffs. Note 12 -° CONDENSED COMBINED FINANCIAL STATEMENTS The Condensed Combined Financial Statements contained in this report provide a summary overview of the financial position of all funds and account groups and of the operating results of all funds. They also serve as an introduction to the more detailed statements that follow. The reader is cautioned that these combined statements have been condensed for presentation purposes and that certain disclosures contained in the combining, fund and account group finan- cial statements may not be disclosed in the condensed combined financial statements. Note 13 - "MEMO ONLY" PRE Presented in these financial statements are certain amounts labeled ° 'memorandum only ". The reader is cautioned that this information has certain limitations as follows: . (1) The "Total" columns of the various combined statements present a combining of unlike purpose funds and cannot be construed to be indicative of the overall financial position, overall results of operations nor overall changes in financial position of the City. (2) Prior year "Total" columns likewise may combine unlike purpose funds (as in 1 above) and additionally do not present detail components by fund group (as is presented for current year totals) and therefore, are incomplete presentations of prior year statements of financial position, results of operations, and changes in financial position of the various funds of the City as established by generally accepted accounting principles. (3) Statement of Revenue, Expenditures and Changes in Fund Balance Compared to Budget present prior year actual amounts. These amounts are incomplete presentations in that prior years budget amounts are not included in conformance with generally accepted accounting principles. CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 1 INTERFUND AUDIT ADJUSTMENTS December 31, 1981 Fund Due From Due To F und Title N O the r Fu nds Other Funds G.O. Bonds of 1967 and 1968 501 $ 47.50 $ Completed Construction Fund 510 47.50 Reclassify assessment payments Utility Fund 702 157.00 General Fund 101 157.00 Reclassify state withholding payments G.O. Bonds of 1967 and 1968 501 715.31 Storm Sewer Bonds of 1971 502 33.85 G.O. Bonds of 1976 506 6,247.37 Completed Construction Fund 510 168.26 Utility Fund 702 450.82 G.O. Bonds of 1977 509 7,405.37 G.O. Bonds of 1978 513 210.24 Reclassify County assessment collections G.O. Bonds of 1978 513 221.21 Utility Fund 702 221.21 Reclassify construction costs General Fund 101 3,888.31 Developer's Deposits 901 3,888.31 Set up Trust and Agency Fund Totals $ 11,929.63 $ 11,9 29.63 CITY OF OAK PARK HEIGHTS, MINNESOTA CONSTRUCTION COSTS BY PROJECT" For The Year Ended December 31, 1981 C ontrac tor En Capital Projects Fund: Lawcon Grant Park Improvements $128,279 $ 16,018 Street Seal Coat Project (Capital Improvement Fund) 41,660 4,437 Total Capital Projects Fund $169,939 $ 20, 455 Special Assessment Funds: Prison Utilities $ 93,860 $ 9,260 1979 Utilities 115,496 12,151 57th Street Improvement 21,393 2,661 Swager's 8th Addition 2,617 Storm Sewer Drainage Improvement 5,5 0_6 Total Special Assessment Funds $230,749 $ 32,1 Enterprise Fund (Water and Sewer): City Hall Expansion $319, $ 29 ,546 Total $719,8 $ 82,196 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 2 Legal Expenditures Fiscal Total Current Prior Easements Other Costs Year Year $ 17,196 $161,493- $ 1,707 $159,786 811 46,908 46,908 $ 18,007 $2 08,401 $ 48,615 $159,78 $ 5,144 $ 1,538 $109,802* $ 1,628 $108,174 1,099 128,746* 1,032 127,714 583 24,637 6,982 17,655 2,617 2,617 5,506 _ 5,506 $ 5,144 $ 3,220 $271,308 $ 17,765 $253 $ 880 $ 14,99 $364,630 $129,159 $235,471 $ 6,024 $ 36,220 $844, $ 195,539 $6 * Completed and capitalized at December 31, 1981 CITY OF OAK PARK HEIGHTS, MINNESOTA SPECIAL ASSESSMENT BONDS SCHEDULE OF DEBT SERVICE PAYMENTS TO MATURITY December 31, 1981 G.O. Storm Sewer G.O. Bonds Improvement $249,000 Of 1967 Bonds G.O. Bonds And 1968 Of 1971 Of 1976 Bonds payable $ 955,000 $100,000 $110,000 Future interest payable 420,040 28,0 15,700 Totals $1,375,040 $128,075 $125,700 Year of maturity: 1982 $ 95,735 $ 15,250 $ 40,550 1983 93,385 14,730 18,870 1984 91,035 14,200 23,120 1985 88,655 13,660 22,100 1986 91,275 13,115 21,060 1987 88,665 12,560 1988 86,055 11,995 1989 88,445 11,425 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 25 ,520 Totals $1,375,040 $128,075 $125,700 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 3 $100,000 $100,000 $100,000 $100,000 G.O. G.O. G.O. Improvement Improvement Improvement Improvement 2,700 $ 42,700 $ 21,800 20,900 6,600 6,600 6,400 $ 66,600 $ 23,300 22,200 21,100 $ 66,600 $ 23,300 22,200 21,100 $ 42,700 $ 66,600 $ 66,600 $ 23,000 21,800 2.1,600 $ 66,4 Total 486,115 $1,871,115 $ 242,935 214,085 192,155 124,415 125,450 101,225 98,050 99,870 96,440 92,975 79,795 81,900 78,770 75,640 72,510 69,380 25,520 $1,871,115 CITY OF OAK PARK HEIGHTS, MINNESOTA REVENUE BOND DEBT SERVICE PAYMENTS TO MATURITY December 31, 1981 Water And Sewer Revenue Bond Bonds payable $200,000 Future interest payable 129,300 Total $32 9,300 Year Of Maturity Amount 1982 $ 26,200 1983 25,450 1984 24,700 1985 28,950 1986 27,788 1987 26,625 1988 25,425 1989 24,225 1990 22,987 1991 26,750 1992 25,100 1993 23,400 1994 21,700 Exhibit 4 Total $329,300 CITY OF OAK PARK HEIGHTS, MINNESOTA SECURITIES FOR DEPOSITS December 31, 1981 Oak Park Heights State Bank Collateral requirements: Demand deposits Time and savings deposits Total deposits Less F.D.I.C. insurance Amount requiring collateral $ 6,051 665,660 671,711 106,05 Collateral required -° 1100 Collateral provided Collateral (deficiency) excess Assi By Oak Park Heights State Bank Cosmopolitan State Bank $ 622,226 605,000 $ (17,226 On Deposit with Oak Park Heights State Bank Northwestern National National City Bank Exhibit 5 Cosmopolitan State Bank $ 783,074 783,074 100,000 $ 68 3,074 $ 751,381 1,035,000 $ 283,619 Amount $ 675,212 605,000 1,035,000 CITY OF OAK PARK HEIGHTS, MINNESOTA INSURANCE IN FORCE December 31, 1981 Exhibit 6 Coverage Amount Umbrella liability $ 5,000,000 Property and general liability: Property (scheduled locations) 1,038,640 Contractual liability: Bodily injury 500,000/500,000 Property damage 100,000/100,000 General liability: Bodily injury 500,000 Property damage 100,000/100,000 Personal injury 500,000 Host liquor 500,000 Public employees bond: 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 100,000 Underinsured motorist 50,000 Physical damage: Comprehensive A.C.V. Collision ($250 deductible) A.C.V. Workmen's compensation Statutory Public officials' errors and omissions ($500 deductible) 100,000/1,000,000 Enforcement professional liability 100,000/300,000 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 7 FUTURE SCHEDULED TAX LEVIES - SPECIAL ASSESSMENT BONDS December 31, 1981 Year Of Year Of Bond Issue llection 1967 1968 1971 1976 1 977 197 Total 1982 $ 8,000 $ 12,000 $ 10,000 $ 10,000 $ 10,000 $ 50,000 1983 $ 34,100 33,200 12,000 10,000 89,300 1984 33,400 32,400 12,000 12,000 89,800 1985 32,700 31,600 11,000 12,000 87,300 1986 37,200 30,800 11,000 79,000 1987 36,300 29,900 11,000 77,200 1988 35,300 29,100 12,000 76,400 1989 34,400 33,400 12,000 79,800 1990 33,400 32,300 12,000 77,700 1991 32,500 31,200 63,700 1992 31,600 29,900 61,500 1993 35,700 29,000 64,700 1994 34,500 27,800 62,300 1995 33,300 26,700 60,000 1996 32,000 25,700 57,700 1997 30,800 33,400 64,200 Totals $507,200 $464,400 $105, $ 44, $ 10, $ 10,000 $1,1 CITY OF OAK. PARK. HEIGHTS, MINNESOTA TAXABLE VALUATIONS, TAX LEVIES AND MILL RATES Taxable valuations: City of Oak Park Heights: Real estate Personal property Total Fiscal disparity: Contribution Distribution Totals ".Pax levies: Year of levy Year of collection Taxes levied: Revenue Bond and interest Totals 1981 (1) 45,309,275 (2,042,454) 488,718 $43,755,539 1981 1982 Exhibit 8 M $42,657,078 686,21 43, 343, 294 _0_ 297,109 $43,640,403 1980 1981 (1) Information not available. Mill Mill Levy Rat Levy Rate $471,081 10.789 $424,305 9.721 50,00 1.149 48,800 1.11 $5 21,0 81 11.9 $473,105 10.840 (1) Information not available. 4