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HomeMy WebLinkAboutAnnual Financial Report December 31, 1985 CITY OF OAK PARK HEIGHTS, MINNESOTA ANNUAL FINANCIAL REPORT DECEMBER 31, 1985 ... CITY OF OAK PARK HEIGHTS, MINNESOTA 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 Notes to Financial Statements Combining And Individual Fund And Account Group Financial Statements General Fund: , Balance Sheet Statement 6 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Statement 7 Special Revenue Fund: Balance Sheet Statement 8 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Statement 9 Debt Service Fund: Balance Sheet Statement 10 Statement of Revenue, Expenditures and Changes in Fund Balance Statement 11 Capital Project Funds: Combining Balance Sheet Statement 12 Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 13 ..., CITY OF OAK PARK HEIGHTS, MINNESOTA TABLE OF v.wA.L A Special Assessment Funds: Combining Balance Sheet Statement 14 Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 15 Enterprise Fund: Balance Sheet Statement 16 Statement of Revenue, Expenses and Changes in Retained Earnings Statement 17 Statement of Changes in Financial Position Statement 18 Trust and Agency Funds: Combining Statement of Changes in Assets and Liabilities Statement 19 Statement of General Fixed Assets Statement 20 Statement of General Long Term Debt Statement 21 Supplementary Financial Information Combined Schedule of Indebtedness Exhibit 1 Debt Service Payments to Maturity: Special Assessment Bonds Exhibit 2 '- Revenue /General Debt Bonds Exhibit 3 Construction Costs - By Project Exhibit 4 Securities for Deposit Exhibit 5 Insurance in Force Exhibit 6 Future Scheduled Tax Levies Exhibit 7 Taxable Valuations, Tax Levies and Mill Rates Exhibit 8 Debt Service Escrow Agent Account: Balance Sheet Exhibit 9 Statement of Changes in Fund Balance Exhibit 10 Bonds Payable Exhibit 11 CITY OF OAK PARK HEIGHTS, MINNESOTA ORGANIZATION December 31, 1985 Term Expires Mayor: Frank Sommerfeldt December 31, 1986 Council members: Joseph Carufel December 31, 1986 Jack Doerr December 31, 1986 Barry Torgerson December 31, 1988 Barbara O'Neal December 31, 1988 Clerk- Treasurer: LaVonne Wilson Appointed VOTO, REARDON, TAUTGES & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS \ I rt ; a w Birch Lake Professional Building • 1310 E. Hwy. 96 • White Bear Lake, MN 55110 • Phone 426 -3263 \ To the Honorable Mayor and Members of the City Council ROBERT J. VOTO, CPA TIMOTHY E. City of Oak Park Heights ROBERT G. TAUTGE5 CPA Oak Park Heights, Minnesota _ We have examined the combined financial statements of the CITY OF OAK PARK HEIGHTS, MINNESOTA, and the combining, individual fund, and account group financial statements of the City as of and for the year ended December 31, 1985, as listed in the table of contents. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances, except as stated in the following paragraph. The City does not maintain complete accounting controls over quantities and costs of general fixed assets. Therefore, we were not able to obtain sufficient evidential _ matter to form an opinion regarding the amounts at which property plant and equipment are recorded in the General Fixed Assets Group of Accounts at December 31, 1985 or 1984 (stated at $779,673 and $556,550 respectively). Accordingly, we do not express an opinion on this account group. In our opinion, except for the effects of such adjustments, if any, as might have been determined to be necessary had we been able to audit general fixed assets, the combined financial statements referred to above present fairly the financial position of the CITY OF OAK PARK HEIGHTS, MINNESOTA at December 31, 1985, and the results of its operations and changes in financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Also, in our opinion, the combining, individual fund, and account group financial statements referred to above present fairly the financial position of the individual funds and account groups of the CITY OF OAK PARK HEIGHTS, MINNESOTA at December 31, 1985 and the results of operations of such funds and the changes in financial position of its proprietary funds for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Our examination was made for the purpose of forming an opinion on the combined finan- cial statements taken as a whole and on the combining, individual fund, and account group financial statements. The accompanying financial information listed as supple- mentary data in the table of contents is presented for purposes of additional analysis and is not a required part of the combined financial statements of the City. The information has been subjected to the auditing procedures applied in the examination of the combined, combining, individual fund, and account group financial statements and, in our opinion, is fairly stated in all material respects in relation to the combined financial statements taken as a whole. February 15, 1986 VOTO, REARDON, TAUTGES & CO., LTD. Certified Public Accountants MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MUNICIPAL FINANCE OFFICERS ASSOCIATION • MINNESOTA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS CITY OF OAK PARK HEIGHTS, MINNESOTA CONDENSED COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1985 Governmental Fund Types _ Special Debt Capital Assets General Revenue Service Project Cash (overdraft) and investments $ 706,295 $ 23,531 $ 5,866 $ 95,354 Accrued interest receivable Accounts receivable 5,608 Due from other funds 44 1,889 Due from other governmental units 1,680 9,498 Due from developers Interfund loan receivable Prepaid expenses Taxes receivable: Delinquent 13,305 510 279 Allowances and deferments (13,305) (510) (279) Due from county 5,482 230 174 Special assessments receivable Fixed assets - net Amount available and to be provided Total assets $ 719,109 $ 33,029 $ 6,096 $ 97,417 Liabilities And Fund Equity Liabilities: Accounts payable $ 48,968 - $ 137 Salaries payable 2,502 Accrued interest Due to other governmental units 9,000 Due to other funds 1,774 $ 1,955 2,880 Interfund loan payable 28,800 Deposits /refunds payable Contracts payable Compensated absences payable Bonds payable Total liabilities 62,244 $ -0- 1,955 31,817 Fund equity: Investment in fixed assets Contributions - net Retained earnings: Undesignated Fund balance: Reserved 4,141 Unreserved: Designated 33,029 86,016 Undesignated 656,865 (20,416) Total fund equity 656,865 33,029 4,141 65,600 Total liabilities and fund equity $ 719,109 $ 33,029 $ 6,096 $ 97,417 CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 1 ._ Fiduciary Account Group Proprietary Fund Type General General Totals (Memorandum Only) Special Fund Type Trust and Fixed Long -Term December 31, _ Assessments Enterprise Agency Assets Debt 1985 1984 (Unaudited) $ 755,612 $ 378,442 $ (18,603) $ 1,946,497 $ 1,569,657 17,704 17,704 9,310 6,291 51,387 63,286 63,748 15,096 152 17,181 819 6,626 17,804 32,973 1,285 1,285 1,666 28,800 28,800 50,900 6,593 6,593 4,125 1,668 15,762 21,698 (1,668) (15,762) (21,698; 685 6,571 '- 240,526 240,526 356,951 2,055,230 $ 779,673 2,834,903 2,663,253 50,366 $ 210,287 260,653 318,988 $ 1,097,376 $ 2,498,278 $ 538 $ 779,673 $ 210,287 $ 5,441,803 $ 5,072,390 $ 107 $ 4,241 $ 496 $ 53,949 $ 44,347 2,502 3,526 3,197 3,197 3,488 14,115 23,115 11,623 �. 10,446 126 17,181 819 28,800 50,900 12 52,296 42 52,350 51,334 72,661 $ 15,287 15,287 13,614 286,000 155,000 195,000 636,000 710,000 296,565 228,975 538 $ -0- 210,287 832,381 962,312 _ 779,673 779,673 556,550 1,810,748 1,810,748 1,852,582 458,555 458,555 393,916 63,935 68,076 46,155 737,396 856,441 681,263 (520) 635,929 579,612 800,811 2,269,303 -0- 779,673 -0- 4,609,422 4,110,076 $ 1,097,376 $ 2,498,278 $ 538 $ 779,673 $ 210,287 $ 5,441,803 $ 5,072,39C 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 - ALL GOVERNMENTAL FUND TYPES For The Year Ended December 31, 1985 Special General Revenue Revenue: General property taxes $ 559,613 Intergovernmental 158,447 $ 38,207 Licenses and permits 15,569 Fines and forfeits 27,630 Interest on investments 39,832 4,165 Interest - other Charges for current services 33,068 Special assessments Connection charges Sale of property 1,525 Other 3,323 Total revenue 839,007 42,372 Expenditures: Current: General government 173,251 3,244 Public safety 258,079 Streets and highways 70,352 Sanitation 75,169 Recreation 85,002 Capital outlay 3,615 10,697 Debt service: Principal Interest Paying agent fees Bonding costs Construction costs Total expenditures 665,468 13,941 Revenue over (under) expenditures 173,539 28,431 Other increases (decreases): Transfers from other funds 66,500 Transfers to other funds (162,500) (66,500) Bond defeasance Changes in amount to be provided Bond retirement Fund escrow account (286) Total other increases (decreases) (96,286) (66,500) Net increase (decrease) in fund balance 77,253 (38,069) Fund balance (deficit) - January 1 579,612 71,098 Fund balance - December 31 $ 656,865 $ 33,029 _ CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 2 Totals (Memorandum Only) Debt Capital Special December 31, Service Project Assessment 1985 1984 $ 24,161 $ 19,724 $ 69,986 $ 673,484/ $ 635,963 1,989 1,652 5,722 206,017 200,955 15,569 15,967 27,630/ 14,633 413 5,828 52,826 103,064 166,978 _ 4,533 4,533 12,293 33,068/ 33,518 32,837 32,837./ 117,372 18,809 18,809 66,166 1,525 23,000 3,323 3,975 26,563 27,204 184,713 1,119,859 1,290,820 _ 176,495 154,095 258,079 227,844 70,352 60,414 75,169 74,652 85,002 79,938 23,159 37,471 9,820 -- -5,000 5,000 5,000 19,828 4,533 28,440 52,801 93,489 50 206 256 626 2,520 42,110 17,124 59,234 255,676 24,878 69,802 45,770 819,859 964,074 1,685 (42,598) 138,943 300,000 326,746 162,500 55,832 284,832 796,350 (46,398) (275,398) (796,350) (602,088) (55,008) (55,008) (79,644) 805,000 (724) (1,010) -0- 162,500 (46,298) (46,584) 123,268 1,685 119,902 92,645 253,416 450,014 2,456 (54,302) 708,166 1,307,030 857,016 $ 4,141 $ 65,600 $ 800,811 $ 1,560,446 $ 1,307,030 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, 1985 General Fund Over (Under) Revenue: Budget Actual Budget General property taxes $ 554,225 $ 559,613 $ 5,388 Intergovernmental 156,475 158,447 1,972 Licenses and permits 13,735 15,569 1,834 Fines and forfeits 16,000 27,630 11,630 Interest on investments 20,000 39,832 19,832 Charges for current services 32,000 33,068 1,068 Sale of property 1,525 1,525 Other 2,595 3,323 728 Total revenue 795,030 839,007 43,977 Expenditures: Current: General government 167,050 173,251 6,201 Public safety 258,848 258,079 (769) Streets and highways 67,844 70,352 2,508 Sanitation 80,500 75 ,.169 (5,331) Recreation 89,058 85,002 (4,056) Contingency 31,947 (31,947) Capital outlay 3,783 3,615 (168) Total expenditures 699,030 665,468 (33,562) Revenue over (under) expenditures 96,000 173,539 77,539 Other increases (decreases): Transfer from other funds 66,500 66,500 Transfer to other funds (162,500) (162,786) (286) Total other increases (decreases) (96,000) (96,286) (286) Net increase (decrease) in fund balance $ -0- 77,253 $ 77,253 Fund balance - January 1 579,612 Fund balance - December 31 $ 656,865 CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 3 Totals (Memorandum Only) _ Special Revenue 1985 Over Over (Under) (Under) 1984 Budget Actual Budget Budget Actual Budget Actual $ 554,225 $ 559,613 $ 5,388 $ 543,573 $ 39,093 $ 38,207 $ (886) 195,568 196,654 1,086 192,959 _ 13,735 15,569 1,834 15,967 16,000 27,630 11,630 14,633 4,165 4,165 20,000 43,997 23,997 49,681 32,000 33,068 1,068 33,318 '- 1,525 1,525 23,000 2,595 3,323 728 3,975 39,093 42,372 3,279 834,123 881,379 47,256 877,106 3,000 3,244 244 170,050 176,495 6,445 154,095 258,848 258,079 (769) 227,844 67,844 70,352 2,508 60,414 80,500 75,169 (5,331) 74,652 89,058 85,002 (4,056) 79,938 31,947 (31,947) 14,650 10,697 (3,953) 18,433 14,312 (4,121) 9,820 17,650 13,941 (3,709) 716,680 679,409 (37,271) 606,763 21,443 28,431 6,988 117,443 201,970 84,527 270,343 66,500 66,500 25,000 (66,500) (66,500) (229,000) (229,286) (286) (156,454) '-' (66,500) (66,500) -0- (162,500) (162,786) (286) (131,454) $ (45,057) (38,069) $ 6,988 $ (45,057) 39,184 $ 84,241 138,889 71,098 650,710 511,821 $ 33,029 $ 689,894 $ 650,710 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 4 CONDENSED COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPE For The Year Ended December 31, 1985 Totals December 31, 1985 1984 Revenue: Customer billings $ 199,880 $ 183,028 Penalties 1,937 1,733 Total operating revenue 201,817 184,761 Expenses: Contractual services 35,388 47,053 MWCC charges 65,253 52,960 Materials and supplies 5,085 3,652 Administrative charges 30,000 30,000 Depreciation 51,473 51,693 Total operating expenses 187,199 185,358 Net income (loss) 14,618 (597) Other income (expense): Interest on investments 28,093 25,832 Plumbing permits 184 531 Refunds and reimbursements 2,814 1,410 Charges for services 293 829 Adjustment to sale of property (10,000) Interest (13,660) (14,513) Paying agent fees (104) (103) Total other income 17,620 3,986 Net income 32,238 3,389 Other increases (decreases): Transfer to special assessment funds (9,434) Credit arising from transfer of depreciation to contributions from property owners 41,835 41,835 Total other increases (decreases): 32,401 41,835 Net increase in retained earnings 64,639 45,224 Retained earnings - January 1 393,916 348,692 Retained earnings - December 31 $ 458,555 $ 393,916 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 5 CONDENSED COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION -- PROPRIETARY FUND TYPE For The Year Ended December 31, 1985 Totals December 31, 1985 1984 Sources of working capital: Operations: Net income $ 32,238 $ 3,389 ._ Expenses not requiring outlay of working capital - depreciation 51,473 51,693 Total working capital provided from operations 83,711 55,082 Total sources of working capital 83,711 55,082 Uses of working capital: Bond principal - long -term portion 15,000 15,000 Transfer to other funds 9,433 Total uses of working capital 24,433 15,000 Total net increase in working capital $ 59,278 $ 40,082 Components of increase in working capital: Cash and investments $ 84,985 $ 70,881 Accrued interest receivable (1,178) Accounts receivable 213 (12,821) Due from other governmental units (15,752) 13,561 Due from other funds (819) (16,681) Accounts receivable - certified 844 (759) Prepaid MWCC 2,468 (1,418) Accounts payable (1,542) (122) Accrued interest payable 291 188 Due to other governmental units (9,266) (4,500) Due to other funds (126) 399 Meter deposits (2,018) (2,468) Bond payable - current portion (5,000) Net increase in working capital $ 59,278 $ 40,082 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 1 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1985 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. FINANCIAL REPORTING ENTITY The City has implemented National Council on Governmental Accounting Statement _ No. 3, Defining the Governmental Reporting Entity. In accordance with Statement No. 3, for financial reporting purposes the City's financial state- ments include all funds, account groups, boards and commissions over which the City Council exercises oversight responsibility. Oversight responsibility includes appointment of governing bodies, budget authority, approval of tax levies, and responsibility for funding deficits. -- There are no additional units of government which meet the criteria of NCGA #3 for inclusion in the Annual Financial Report of the City of Oak Park Heights, Minnesota, except as follows: • The Housing and Redevelopment Authority of the City of Oak Park Heights. The HRA of the City of Oak Park Heights is a separate legal entity which was organized to provide adequate housing within Oak Park Heights. The appointment of HRA board members is made by the City Council. There have been no financial transactions as of December 31, 1985 of the HRA. FUNDS AND ACCOUNT GROUPS The accounting system of the City is organized and operated on a fund basis. _ 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. The following types of funds and account groups are employed by the City: GOVERNMENTAL FUNDS The General Fund - to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or for major capital projects) that are legally restricted to expenditure for specified purposes. Debt Service Funds - to account for the accumulation of resources for, and the payment of, general long -term debt principal, interest, and related costs. "- Capital Project Funds - to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds, Special Assessment Funds, and Trust Funds). Special Assessment Funds - to account for the financing of public improvements or services deemed to benefit the properties against which special assessments are levied. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 2 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) PROPRIETARY FUNDS Enterprise Funds - to account for operations: (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of pro- viding goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and /or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. FIDUCIARY FUNDS Agency Funds - to account for assets held by a governmental unit as an agent for individuals, private organizations, other governmental units and /or other funds. ACCOUNT GROUPS The governmental fund types are designed to account for the financial flow of a particular fund; therefore, they generally include only current assets and current liabilities on their balance sheets. The City maintains two account groups to account for noncurrent assets and long -term liabilities as follows: General Fixed Assets - The City maintains a separate group of accounts which contain the fixed assets used in the governmental fund type operations. They are assets of the City as a whole and not of individual funds. General Long -Term Debt - This account group contains the long -term obligations of the City including general obligation bonds, certificates of indebtedness, contracts payable and compensated absences payable. It does not include the long -term liabilities of Special Assessment Funds which are accounted for in those funds. BASIS OF ACCOUNTING The modified accrual basis of accounting is followed by the City for its governmental funds (General, Special Revenue, Debt Service, Capital Project, and Special Assessment) and Agency 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: • Interest on long -term debt which is recognized when due, except for January 1 maturities which are recognized in the previous fiscal period. • Disbursements for inventory type items and prepaid expenses which are considered expenditures at the time of purchase. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 3 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) BASIS OF ACCOUNTING (Continued) Major revenue sources susceptible to accrual include property taxes, special assessments, intergovernmental revenues, charges for services and interest on investments. Interest on special assessments is recognized as revenue when due. Major revenue sources not susceptible to accrual includes licenses and permits, fees, and miscellaneous revenues. Such revenues are recorded as revenue when received because they are not measurable until collected. The accrual basis of accounting is followed for the proprietary fund. Under this method of accounting, revenues are recognized during the accounting period in which they are earned and become measurable, and expenses are recognized in the accounting period in which they are incurred, if measurable. BUDGETARY DATA The City Council adopts an annual budget for the General Fund and the Special Revenue Fund. During the budget year supplemental appropriations and deletions are or may be authorized by the City Council. The amounts shown in the finan- cial statements as "Budget" represent the original budgeted amounts plus all revisions made during the year and /or for the year. The modified accrual basis of accounting is used by the City for budgetary data. The City monitors budget performance on the departmental basis. All amounts over budget have been approved by the City Council through the disbursement approval process. Significant budget variances are as follows for the current year: Over (Under) Budget Actual Budget General Fund: Mayor and Council: Current $ 44,340 $ 64,172 $ 19,832 City Hall: Current 18,325 12,657 (5,668) — Animal Control: Current 3,475 762 (2,713) Streets and Alleys: Current 11,200 8,163 (3,037) Snow and Ice Removal: Current 27,494 32,295 4,801 CITY OF OAK PARK HEIGHTS, MINNESOTA _ Page 4 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) BUDGETARY DATA (Continued) The $19,832 excess of expenditure over budget for Mayor and Council resulted primarily from higher than anticipated insurance rates. The $5,668 favorable budget variance for City Hall is the result of lower than anticipated expenditures for utilities. The $2,713 favorable budget variance for Animal Control is the result of not hiring a dog catcher. The $3,037 favorable budget variance for Streets and Alleys is the result of fewer street repairs than anticipated. The $4,801 excess of expenditures over budget for snow and ice removal is the result of higher snowfall than had been anticipated. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed by the City because it is at present considered not necessary to assure effective budgetary control or to facilitate effective cash planning and control. Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS ASSETS CASH AND INVESTMENTS Cash balances from all funds are pooled and invested to the extent available in authorized investments. Earnings from investments are allocated to individual funds on the basis of the fund's available cash balance. Investments are stated at cost (plus interest added, if any) which approximates market value. Material purchase discounts and premiums are amortized over the term of the investment. Interest earnings are accrued at the balance sheet date. Cash and investment balances were as follows at December 31, 1985 and 1984: December 31, 1985 1984 Cash (overdraft) - checking $ (6,144) $ (1,170) Petty cash and change 50 50 Investments 1,952,591 1,570,777 Totals $1,946,497 $1,569,657 _ CITY OF OAK PARK HEIGHTS, MINNESOTA Page 5 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) 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. LOCAL GOVERNMENT AID REVENUE RECOGNITION Local government aid is provided by the State. This aid is provided as a shared tax based upon a statutory formula and without restrictions. Payment from the State is generally received during each calendar year. The City recognizes 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 in cash. 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 May 15 and October 15 of each calendar year by the property owners. These taxes are collected by the County and remitted to the City by approximately July 15 and December 15. 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. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after 3 years unless it is homesteaded, agricultural, or seasonal recreational land (as defined in state statutes) in which event the property is subject to such sale after 5 years. 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 credits not received at the normal time are recognized as revenue for the current year. Homestead credits received by the City from the State are recognized as revenue when received in cash. 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 CITY OF OAK PARK HEIGHTS, MINNESOTA Page 6 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) PROPERTY TAX REVENUE RECOGNITION (Continued) accounting practice is at nominal variance with generally accepted accounting _ principles in that the deferred income position (i.e., 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 effect upon the operating statements of the City. 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 during each year. The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal Disparities Formula) per State Statute 473F. This statute provides a means of spreading a portion of the taxable valuation of commercial/ industrial real property to various taxing authorities within the defined Metropolitan area. The valuation "shared" is a portion of commercial /industrial - property valuation growth since 1971. Property taxes paid to the City of Oak Park Heights through this formula for 1985 and 1984 totaled $11,195 and $11,677 respectively. Receipt of property taxes from this "fiscal disparities pool" does not increase or decrease total tax revenue. 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 accordance with State Statutes. Usually, the City adopts the assessment roll when the individual project is completed or substantially completed. The City certifies the adopted assessment roll to the County for collection. Collection of annual installments including interest, is handled by the County in the same manner as for property taxes. Assessments are collectible over a term of years, generally consistent with the term of years of the related bond issue. Property owners are allowed to and often do, prepay future installments without interest or prepayment penalty. The City recognizes special assessment revenue when it becomes both measurable and available to finance bonded debt. In practice, special assessment principal is recognized as revenue in the year when the assessment roll is adopted by the City Council and 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 Page 7 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) SPECIAL ASSESSMENT REVENUE RECOGNITION (Continued) Once a special assessment roll is adopted, the amount attributed to each parcel becomes 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 become delinquent, the property is subject to tax forfeit sale. The first proceeds 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 poten- tially uncollectible assessments has been provided. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after 3 years unless it is homesteaded, agricultural, or seasonal recreational land (as defined in State Statutes) in which event the property is subject to such sale after 5 years. INVENTORIES The original cost of materials and supplies has been recorded as expenditures and /or expenses at the time of purchase. No funds maintain significant amounts of inventories of materials and supplies. FIXED ASSETS 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. A summary of changes in General Fixed Assets is as follows: Balance Balance 1/1/85 Additions Deletions 12/31/85 Land $ 101,921 $ 1,375 $ 100,546 Buildings and structures 308,644 $ 187,864 496,508 Machinery and equipment 130,186 34,225 150 164,261 Furniture and fixtures 15,799 2,559 18,358 Totals $ 556,550 $ 224,648 $ 1,525 $ 779,673 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 8 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) FIXED ASSETS - PROPRIETARY FUNDS Fixed assets of the proprietary fund (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: Depreciation Assets Depreciable Lives 1985 1984 Purchased assets: Water 5 -50 years $ 7,559 $ 7,669 Sewer 5 -50 years 2,079 2,189 Contributed assets: Water 50 years 21,070 21,070 Sewer 50 years 20,765 20,765 Totals $ 51,473 $ 51,693 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 prin- ciples. Consequently, the contribution account reflects the net book value of contributed assets rather than the original cost of such assets. A summary of proprietary fund assets at December 31, 1985 is as follows: Buildings and structures $ 504,040 Machinery and equipment 60,464 Water and sewer lines 2,062,834 Total 2,627,338 Less: Accumulated depreciation (572,108) Net fixed assets $2,055,230 AMOUNT TO BE PROVIDED The City's policy relating to Special Assessment Debt Service Funds is such that they may not reflect a fund deficit. For any Special Assessment Debt Service Fund which would reflect a deficit, an "amount to be provided" has been recorded. The "amount to be provided" is each fund's supplemental financing requirement. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 9 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) CITY INDEBTEDNESS The following is a schedule of bond transactions of the City for the year ended December 31, 1985. General Revenue Special Obligation Bonds Assessment Total Bonds payable - January 1, 1985 $ 200,000 $ 170,000 $ 340,000 $ 710,000 Bonds retired in 1985 5,000 15,000 54,000 74,000 Bonds payable - December 31, 1985 $ 195,000 $ 155,000 $ 286,000 $ 636,000 All bond issues outstanding at December 31, 1985 are backed by the full faith and credit of the City, including special assessment bond issues. Outstanding balance at December 31, 1985, principal and interest payments due in 1986, final due date, interest rates, and other pertinent data are presented in the Combined Schedule of Indebtedness (Exhibit 1). Principal and interest payments through maturity are presented in Exhibits 2 and 3. The financial transactions of the escrow account are not presented in the financial statements. A summary of the 1985 activity, however, is presented in Exhibits 9, 10 and 11 of the Supplementary Financial Information Section. The annual requirement to amortize all bonded debt outstanding at December 31, 1985 including interest payments of $394,176 are as follows: General Special Year Ending Obligation Assessment Proprietary ... December 31, Bonds Bonds Fund Types Total 1986 $ 24,403 $ 78,539 $ 27,788 $ 130,730 1987 23,977 54,598 26,625 105,200 1988 23,553 51,697 25,425 100,675 1989 28,102 48,783 24,225 101,110 1990 27,203 45,823 22,987 96,013 1991 -2003 286,465 113,033 96,950 496,448 Total $ 413,703 $ 392,473 $ 224,000 $ 1,030,176 The amount to be provided in the General Long -Term Debt Group of Accounts represents future tax levies for the retirement of bonds payable. Total deferred tax levies to retire general long -term debt bonds are $434,414. CITY OF OAK PARK HEIGHTS, MINNESOTA _ Page 10 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) CITY INDEBTEDNESS (Continued) The amount to be provided in the special assessment funds will be derived from _ assessments to be levied annually against the benefited properties and future tax levies as scheduled to provide funds for debt retirement. Total deferred tax levies to retire special assessment bonds are $126,000 at December 31, 1985. All bond issues outstanding at December 31, 1985 are backed by the full faith and credit of the City unless otherwise specified. _Outstanding balances at December 31, 1985, principal payments due in 1986, future interest to maturity, final due date, interest rates, and other per- tinent data are presented in the Combined Statement of Indebtedness and /or the Schedules of Debt Service Payments to Maturity - Exhibits 1 through 3. 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. Cash on hand with the paying agent is not included in these financial statements. LEGAL DEBT MARGIN The City is subject to a statutory limitation by the State of Minnesota for - bonded indebtedness payable principally from property taxes. The City of Oak Park Heights legal debt margin for 1985 and 1984 is computed as follows: r December 31, 1985 1984 Assessed value (after fiscal disparities) $47,918,929 $48,894,474 Debt limit (7 -1/3% of assessed value) $ 3,593,920 $ 3,667,086 Amount of debt applicable to debt limit: Total bonded debt $ 636,000 $ 710,000 Less: Special assessment bonds and proprietary bonds 441,000 510,000 Less: Cash and investments in debt service funds 5,866 2,456 Total debt applicable to debt limit $ 189,134 $ 197,544 Legal debt margin $ 3,404,786 $ 3,469,542 Legal debt margin is calculated on general obligation bond issues only (i.e., this does not include Special Assessment or Revenue /Enterprise Fund bonded debt). CITY OF OAK PARK HEIGHTS, MINNESOTA Page 11 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) COMPENSATED ABSENCES The accrual for compensated absences is recorded as a liability in the General Long -Term Debt Group of Accounts. Unused vacation and the portion of sick leave payable as severance pay are recorded as liabilities in these financial statements. The City's liability for compensated absences is scheduled below: General Total Long -Term December 31, Debt Proprietary 1985 1984 Vacation $ 1,717 $ 1,717 $ 1,211 Severance 13,570 13,570 12,403 Total $ 15,287 $ -0- $ 15,287 $ 13,614 The City also has an unrecorded contingent liability for unused employee sick leave of $51,125 and $43,398 at December 31, 1985 and 1984 respectively. RETIREMENT The City of Oak Park Heights participates in the Public Employees Retirement Association defined benefit plans as follows: Public Employees Police and Retirement Fund Fire Fund Police Employees 7 Other City Employees 5 Totals 5 7 The City had 12 employees covered by PERA and 12 total employees. _ The Public Employees Retirement Fund and the Police and Fire Fund are defined benefit pension plans administered by the Public Employees Retirement Association in accordance with Minnesota Statutes, Chapters 353 and 356. The Public Employees Retirement Fund's membership consists of employees of counties, cities, and schools in non - certified positions throughout the State of Minnesota. The membership of the Public Employees Police and Fire Fund con- _ sists of police officers and fire fighters employed by counties and cities throughout the State of Minnesota. CITY OF OAK PARK HEIGHTS, MINNESOTA _ Page 12 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) RETIREMENT (Continued) In general, the association provides defined retirement benefits based on a member's average salary for any five successive years of allowable service, age, and years of credit at termination of service. In addition, the retire- ment program provides benefits to members upon disability and to survivors upon death of eligible members. A summary of plan eligibility requirements is available at PERA. Such retire- ment terms are governed by State Statute. Retirees have a variety of annuity options available for payment of benefits. The amounts of annuity (retirement benefits) are based on the following _ formulas: BASIC MEMBERS - 2% of the average salary over the highest five successive years on which deductions were paid for each of the first 10 years and 2 -1/2% of said "average salary" for the period thereafter. COORDINATED MEMBERS - 1% of the average salary over the highest five suc- cessive years on which deductions were paid for each of the first 10 years and 1 -1/2% of said average salary for the period thereafter. POLICE AND FIRE MEMBERS - 2 -1/2% of the average salary over the highest five successive years on which deductions were paid for each of the first 25 years and 2% of said average salary for the period thereafter. PERA also provides death and disability benefits. Pension benefits are funded from member and employer contributions and income from investment of fund - assets. Public Employees Retirement Fund members belong to either the Basic or Coordinated Plan. Coordinated members are covered by Social Security and Basic members are not. All new members of the Public Employees Retirement Fund must participate in the Coordinated Plan. Current contribution rates for the funds are as follows: Additional Employee Employer Employer Public Employees Retirement Fund: Basic Plan 8% 8% 2-1/2% Coordinated Plan 4% 4% 1/4% Public Employees Police and Fire Fund 8% 12% - - Upon termination, regardless of years of service, if not rehired in a PERA- covered position, all salary deductions will be refunded, with interest at 5% - compounded annually. _ CITY OF OAK PARK HEIGHTS, MINNESOTA Page 13 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) RETIREMENT (Continued) _ Minnesota Statutes, Section 356.215, Subd. 4, provides the annual actuarial valuations of plan benefits shall be computed in accordance with the entry age normal cost (level normal cost) method. This method is a standardized disclo- sure measure of the accrued pension benefit obligation. The actuarial present value (APV) is the discounted amount of benefits estimated to be payable in the future as a result of employee services to date, computed by attributing an equal benefit amount (including the effects of projected salary increases) to each year of credited and expected future employee service. In the calculation of normal cost and accrued liabilities of the benefit plan, the actuary uses an 8 percent interest rate assumption and assumes an annual growth rate of 6 -1/2 percent in member's salary. The unfunded accrued liabilities of $645,700,193 in the Public Employees Retirement Fund and $27,079,452 in the Public Employees Police and Fire Fund as of June 30, 1985, are the amounts by which reserves required to fund plan benefits exceed the assets of the funds calculated as follows: Public Employees Public Employees Retirement Fund Police and Fire Fund Net assets - June 30, 1985 $ 1,812,024,978 $ 330,662,288 Aggregate accrued liabilities including APV of plan benefits 2,457,725,171 357,741,740 Unfunded actuarial accrued liability $ 645,700,193 $ 27,079,452 The City made employer contributions of $21,524 for the year ended June 30, 1985 and $24,524 for the year ended December 31, 1985 in accordance with funding requirements determined by Minnesota statutes. The City made employer contributions of $7,317 to the Federal Social Security Retirement Plan. CITY OF OAK PARK HEIGHTS, MINNESOTA _ Page 14 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) RESTRICTIONS OF FUND EQUITY Major fund equity designations at December 31, 1985 and 1984 are as follows: _ December 31, 1985 1984 Special Revenue Funds: - Designated for ensuing years expenditures $ 33,029 $ 71,098 Debt Service Funds: - Reserved for debt service 4,141 2,456 Capital Project Funds: r Designated for capital improvements 86,016 53,687 Designated for committed contracts 6,421 Special Assessment Funds: - Reserved for debt service 63,935 43,699 Designated for committed contracts 1,626 Designated for construction /debt service 737,396 705,715 - Totals $ 924,517 $ 884,702 The Storm Sewer Drainage Improvement Fund had a deficit at December 31, 1985 of $(20,416). This deficit is to be funded by a supplemental tax levy to be collected in 1986. - Note 3 - 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. Also, these statements serve as an introduction to the more detailed statements which 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 financial statements may not be disclosed in the condensed com- bined financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 15 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 4 - "MEMORANDUM ONLY" PRESENTATIONS Presented in these financial statements are certain amounts labeled "memorandum only ". The reader is cautioned that this information has certain limitations r , 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 com- ponents 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) Statements of Revenue, Expenditures and Changes in Fund Balance compared to budget present prior year actual amounts. These amounts are incomplete presentations in that prior year budget amounts are not included in conformance with generally accepted accounting principles. Note 5 - SPECIAL TAXING DISTRICT The City Council of Oak Park Heights established Storm Sewer Improvement Tax District No. 1 pursuant to Minnesota Statutes, Section 444.17 and Ordinance No. 1600 adopted by the City on October 12, 1982. The City is accounting for the activity of this fund as a debt service fund. Financing of the construction costs for establishment of this district was pro- - vided by issuing the $205,000 General Obligation Storm Sewer Bonds of 1982. The bonds mature over the next 18 years with final payment due in 2003. To provide monies for payment of the principal and interest on the bonds the City levied upon all the taxable property in the Storm Sewer Improvement Tax District an ad valorem tax. The levy is to be spread for collection in years 1984 to 2003. The original levy adopted was $486,999. City Council approved an additional tax levy of $21,650 for each of the calendar years 1985 and 1986 (see Exhibit 7) to provide financing for excess construction costs totaling approximately $41,000 at December 31, 1985. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 16 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 6 - DEFERRED AD VALOREM TAX LEVIES - SPECIAL ASSESSMENT BOND ISSUE 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 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. Alternatively, the City Council is required to levy any addi- tional taxes found necessary for the full payment of principal and interest. These future scheduled tax levies are not shown as assets of the special assessment funds 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: Percent Levy /Collection Scheduled 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 94,300 68,000 72.11 1983/84 95,800 75,000 78.29 1984/85 75,000 75,000 100.00 1985/86 17,000 34,000 200.00 .. 1986/87 18,000 1987/88 19,000 1988/89 19,000 1989/90 20,000 1990/91 8,000 1991/92 8,000 _ Note 7 - METROPOLITAN WASTE CONTROL COMMISSION During 1970, the Metropolitan Waste Control Commission (MWCC) 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 MWCC was formed, existing interceptor sewer lines and treatment facilities were transferred from the cities to the MWCC in exchange for future credits. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 17 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 7 - METROPOLITAN WASTE CONTROL COMMISSION (Continued) The MWCC 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 MWCC 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 MWCC 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). 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, 1985 and 1984 were as follows: December 31, 1985 1984 Current value credits $ 585 $ 624 - Debt service credits 160,687 175,349 Deferred charges 7,546 8,207 Total $ 168,818 $ 184,180 Note 8 - INTERFUND RECEIVABLES /PAYABLES The City had an interfund loan at December 31, 1985 as follows: Loan Loan Receivable Payable Closed Bond Fund $ 28,800 Storm Sewer Drainage Improvement $ 28,800 Interest is being charged at 10% per annum. CITY OF OAK PARK HEIGHTS, MINNESOTA - Page 18 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 9 SEGMENT INFORMATION Enterprise Segments 1985 1984 Sewer and Water: _ Operating revenue $ 201,817 $ 184,761 Depreciation 51,473 51,693 Operating income (loss) 14,618 (597) Net income 32,238 3,389 Net working capital 354,073 294,795 Total assets 2,498,278 2,477,812 Total equity 2,269,303 2,246,498 - Bonds payable 155,000 170,000 Transfers out 9,434 -0- Note 10 - CONTINGENCIES The City attorney has indicated that existing and pending lawsuits, claims and r other actions in which the City is a defendant are either covered by insuran- ce; of an immaterial amount; or, in the judgment of the City attorney, remo- tely recoverable by plaintiffs. r CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 6 GENERAL FUND BALANCE SHEET December 31, 1985 December 31, 1985 1984 Assets Cash and investments $ 706,295 $ 617,489 — Accounts receivable 10 44 Due from other governmental units 1,680 745 Due from other funds 44 Accounts receivable - certified 5,598 5,598 Taxes receivable: Delinquent 13,305 18,756 Allowances and deferments (13,305) (18,756) Due from County 5,482 Total assets $ 719,109 $ 623,876 Liabilities And Fund Balance Liabilities: Accounts payable $ 48,968 $ 33,964 Salaries payable 2,502 3,526 Due to other governmental units 9,000 6,774 Due to other funds 1,774 Total liabilities 62,244 44,264 Fund balance: Unreserved: Undesignated 656,865 579,612 Total fund balance 656,865 579,612 Total liabilities and fund balance $ 719,109 $ 623,876 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA _ Statement 7 Page 1 of 4 GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1985 1985 Over _ (Under) 1984 Budget Actual Budget Actual (Memorandum Only) Revenue: General property taxes: Current and delinquent $559,676 $543,290 Other (63) 283 Total general property taxes $554,225 559,613 $ 5,388 543,573 Intergovernmental: State: Homestead credit 45,775 45,775 46,887 Local government aid 99,700 99,652 (48) 94,074 Police aid 11,000 11,669 669 11,284 Surcharge rebate 899 899 Total state 156,475 157,995 1,520 152,245 County: Gravel tax allocation 452 452 497 Total intergovernmental revenue 156,475 158,447 1,972 152,742 Licenses and permits 13,735 15,569 1,834 15,967 Charges for services: Current 2,000 3,068 1,068 3,318 Administrative - Enterprise Fund 30,000 30,000 30,000 Total charges for services 32,000 33,068 1,068 33,318 Fines and forfeits 16,000 27,630 11,630 14,633 Interest on investments 20,000 39,832 19,832 43,748 Refunds and reimbursements 1,895 2,623 728 3,123 Sale of property 1,525 1,525 23,000 Donations 700 700 700 Special assessment 152 Total revenue 795,030 839,007 43,977 830,956 Expenditures: General government: Mayor and council: Current: Personal services 20,900 22,915 2,015 17,665 Materials and supplies 4 Contractual services 23,440 41,257 17,817 34,096 Total mayor and council $ 44,340 $ 64,172 $ 19,832 $ 51,765 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 7 Page 2 of 4 i GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1985 i 1985 _ Over (Under) 1984 Budget Actual Budget Actual _ Expenditures: (continued) (Memorandum General government: (continued) Only) Elections: Current: -- Personal services $ 1,240 Materials and supplies 290 Capital outlay 2,437 Total elections $ -0- $ -0- $ -0- 3,967 City clerk: Current: _ Personal services 65,475 62,484 (2,991) 60,611 Materials and supplies 1,550 1,685 135 1,201 Contractual services 4,350 3,170 (1,180) 2,993 Total current 71,375 67,339 (4,036) 64,805 Capital outlay 500 550 50 464 Total city clerk 71,875 67,889 (3,986) 65,269 Planning and zoning: Current: Contractual services 2,500 1,030 (1,470) 1,129 City hall: Current: r ` Materials and supplies 2,400 2,482 82 2,720 Contractual services 15,925 10,175 (5,750) 8,068 Total city hall 18,325 12,657 (5,668) 10,788 Assessor: Current: Personal services 6,410 6,404 (6) Capital outlay 824 838 14 Total assessor 7,234 7,242 8 -0- Engineering: Current: Contractual services 3,000 555 (2,445) 1,201 General management: Current: Personal services 14,000 16,658 2,658 Materials and supplies 300 350 50 348 Contractual services 6,800 4,086 (2,714) 19,529 Total general management 21,100 21,094 (6) 19,877 i Total general government $168,374 $174,639 $ 6,265 $153,996 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA _ Statement 7 Page 3 of 4 GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1985 1985 Over _ (Under) 1984 Budget Actual Budget Actual Expenditures: (continued) (Memorandum Public safety: Only) Police department: Current: Personal services $220,648 $203,606 $(17,042) $188,867 Materials and supplies 13,375 14,404 1,029 11,199 Contractual services 10,350 30,933 20,583 19,082 Total current 244,373 248,943 4,570 219,148 _ Capital outlay 1,500 833 (667) 752 Total police department 245,873 249,776 3,903 219,900 Fire protection: Current: Contractual services 11,000 8,374 (2,626) 8,290 Animal control: Current: Materials and supplies 175 87 (88) 51 Contractual services 3,300 675 (2,625) 355 Total animal control 3,475 762 (2,713) 406 Total public safety 260,348 258,912 (1,436) 228,596 Streets and highways: - Streets and alleys: Current: Materials and supplies 1,200 423 (777) 545 Contractual services 10,000 7,740 (2,260) 16,270 Total current 11,200 8,163 (3,037) 16,815 Capital outlay 225 225 Total streets and alleys 11,200 8,388 (2,812) 16,815 Snow and ice removal: Current: Contractual services 27,494 32,295 4,801 14,970 Street lighting: Current: Contractual services 28,500 29,457 957 28,136 _ Arboreous: Current: Personal Service 500 394 (106) 409 Material and supplies 50 6 (44) 45 Contractual services 100 37 (63) 39 Total arboreous 650 437 (213) 493 Total streets and highways $ 67,844 $ 70,577 $ 2,733 $ 60,414 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 7 Page 4 of 4 _ GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1985 1985 Over (Under) 1984 Budget Actual Budget Actual Expenditures: (continued) (Memorandum Sanitation: Only) Refuse collection and disposal: Current: Contractual services $ 72,500 $ 66,859 $ (5,641) $ 58,236 Tree removal and planting: Current: Contractual services 8,000 8,310 310 16,416 Total sanitation 80,500 75,169 (5,331) 74,652 Recreation: Parks, playgrounds and rinks: Current: Personal services 76,583 75,499 (1,084) 70,378 Materials and supplies 3,750 3,195 (555) 2,533 Contractual services 8,725 6,308 (2,417) 7,027 Total current 89,058 85,002 (4,056) 79,938 Capital outlay 959 1,169 210 801 Total recreation 90,017 86,171 (3,846) 80,739 Contingency: Current: ... Personal services 31,947 -0- (31,947) -0- Total expenditures 699,030 665,468 (33,562) 598,397 Revenue over expenditures 96,000 173,539 77,539 232,559 Other increases (decreases): Transfer from Revenue Sharing Fund 66,500 66,500 25,000 Transfer to Capital Project Fund (162,500) (162,500) (122,500) Transfer to Special Assessment Fund (8,954) Fund escrow account (286) (286) Total other increases (decreases) (96,000) (96,286) (286) (106,454) Net increase in fund balance $ -0- 77,253 $ 77,253 126,105 Fund balance - January 1 579,612 453,507 Fund balance - December 31 $656,865 $579,612 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA _ Statement 8 SPECIAL REVENUE FUND - FEDERAL REVENUE SHARING BALANCE SHEET December 31, 1985 December 31, _ 1985 1984 Assets Cash and investments $ 23,531 $ 65,825 — Due from other governmental units 9,498 9,698 Total assets $ 33,029 $ 75,523 Liabilities and Fund Balance Liabilities: Accounts payable $ 4,425 Total liabilities $ -0- 4,425 Fund balance: Unreserved: Designated for ensuing years budget 33,029 71,098 Total fund balance 33,029 71,098 Total liabilities and fund balance $ 33,029 $ 75,523 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 9 _ SPECIAL REVENUE FUND - FEDERAL REVENUE SHARING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1985 1985 — Over (Under) 1984 Budget Actual Budget Actual Revenue: (Memorandum Intergovernmental: Only) Federal grants $ 39,093 $ 38,207 $ (886) $ 40,217 Interest on investments 4,165 4,165 5,933 Total revenue 39,093 42,372 3,279 46,150 Expenditures: Current expense 3,000 3,244 244 3,000 Capital outlay 14,650- 10,697 (3,953) 5,366 Total expenditures 17,650 13,941 (3,709) 8,366 Revenue over expenditures 21,443 28,431 6,988 37,784 Other (decreases): Transfer to General Fund (66,500) (66,500) -0- (25,000) Net increase (decrease) in fund balance $(45,057) (38,069) $ 6,988 12,784 ._ Fund-balance - January 1 71,098 58,314 Fund balance - December 31 $ 33,029 $ 71,098 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 10 DEBT SERVICE FUND STORM SEWER BONDS OF 1982 _ BALANCE SHEET December 31, 1985 December 31, 1985 1984 Assets Cash and investments $ 5,866 $ 2,456 Taxes receivable: Delinquent 510 584 Allowances and deferments (510) (584) Due from County 230 Total assets $ 6,096 $ 2,456 - Liabilities and Fund Balance - Liabilities Due to other funds $ 1,955 Total liabilities 1,955 $ -0- Fund balance: Reserved for debt service 4,141 2,456 Total liabilities and fund balance $ 6,096 $ 2,456 The accompanying notes are an integral part of these financial statements. -- CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 11 DEBT SERVICE FUND STORM SEWER BONDS OF 1982 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1985 December 31, 1985 1984 Revenue: Storm sewer ad valorem taxes: Current $ 24,161 $ 23,846 -- Intergovernmental: State: Homestead credit 1,989 2,086 Interest on investments 413 235 Total revenue 26,563 26,167 _ Expenditures: Principal 5,000 5,000 Interest 19,828 20,252 Paying agent fees 50 50 Total expenditures 24,878 25,302 Revenue over (under) expenditures 1,685 865 Fund balance - January 1 2,456 1,591 Fund balance - December 31 $ 4,141 $ 2,456 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 12 - CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1985 Storm Sewer Totals Capital Drainage Brekke Park EDP December 31, Improvements Improvement Improvement System 1985 1984 Assets (Memorandum Only) Cash and investments $ 55,751 $ 9,201 S 2,458 $ 27,944 $ 95,354 $ 63,885 _ Due from other funds 1,889 1,889 Taxes receivable: Delinquent 279 279 Allowances and deferments (279) (279)" Due from County 174 174 Total assets $ 55,751 $ 11,264 $ 2,458 $ 27,944 $ 97,417 $ 63,885 Liabilities And - Fund Balance Liabilities: .. Accounts payable $ 137 $ 137 $ 1,303 Contract payable 57,304 Interfund loan payable S 28,800 28,800 50,900 Retainage payable 7,861 Due to other funds 2,880 2,880 819 Total liabilities $ -0- 31,680 137 $ -0- 31,817 118,187 Fund balance (deficit): Unreserved: Designated for committed contracts 6, 421 Designated for capital Improvements 55,751 2,321 27,944 86,016 53,687 Undesignated (20,416) (20,416) (114,410) - Total fund balance (deficit) 55,751 (20,416) 2,321 27,944 65,600 (54,302) Total liabilities and fund balance $ 55,751 $ 11,264 $ 2,458 $ 27,944 $ 97.417 $ 63,885 The accompanying notes are an Integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 13 CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE December 31, 1985 Storm Sewer Totals Capital Drainage Brekke Park EDP December 31, Improvements Improvement Improvement System 1985 1984 Revenue: (Memorandum General property taxes: Only) Current and delinquent S 19,719 S 19,719 Other 5 5 Total general '- property taxes 19,724 19,724 Intergovernmental: State: Homestead credit 1,652 1,652 Interest on Investments S 4,646 60 $ 19 $ 1,103 5,828 $ 5,565 Reimbursement of construction costs 200 Total revenue 4,646 21,436 19 1,103 27,204 5,765 Expenditures: Interfund Interest 2,880 1,653 4,533 Construction costs 25,082 3,940 13,088 42,110 190,986 Capital outlay 23,159 23,159 .... Total expenditures 25,082 6,820 14.741 23,159 69,802 190,986 Revenue over (under) expenditures (20.436) 14,616 (14,722) Q2.056) (42,598) (185,221) Other increases (decreases): Transfer from General Fund 22,500 90,000 50,000 162,500 122,500 Reclassification of prior period cost (2,522) Total other increases (decreases) 22,500 -0- 90,000 50.000 162.500 119,978 Net increase (decrease) in fund balance 2,064 14,616 75,278 27,944 119,902 (65,243) Fund balance (deficit) - January 1 53,687 (35,032) (72,957) -0- (54,302) 10,941 Fund balance (deficit) - December 31 S 55,751 S (20,416) S 2,321 $ 27.944 $ 65,600 $(54,302) The accompanying notes are an Integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA SPECIAL ASSESSMENT FUNDS COMBINING BALANCE SHEET December 31, 1985 Debt Service _ G.O. Storm Sewer $249,000 $165,000 Improvement G.O. Closed Improvement Bonds Bonds Bond Bonds _ Of 1971 Of 1976 Fund Of 1982 Assets Cash (overdraft) and investments $ 30,614 $ 72,554 $515,107 $ 56,182 Due from other funds 149 418 4,970 544 Accounts receivable 6,291 Interfund loan receivable 28,800 Taxes receivable: Delinquent 283 171 517 697 Allowances and deferments (283) (171) (517) (697) Due from County 105 99 60 421 Special assessments: --- - Delinquent 193 5,828 Deferred 1, 656 2,578 92,512 41,151 Special defer d 14,800 Due from County - _ (35) Amount to be provided 27,505' 22,861 Total assets S 60,029 $ 75,842 $653,533 $ 135.959 Liabilities And Fund Balance Liabilities: Accounts payable Due to other funds S 29 S 8,247 S 959 Refund payable Contracts payable Retainage payable I/ ' Bonds payable 8` 60,000 S 20,000 135,000 Total liabilities 60,029 20,000 8.247 135,959 Fund balance: Reserved for: Debt service 55,842 Unreserved: Designated for: Committed contracts Construction /debt service 645,286 Undesignated Total fund balance -0- 55,842 645,286 -0- Total liabilities and fund balance S 60,029 $ 75,842 $653,533 $ 135.959 CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 14 $80,000 G.O. Total Construction Totals _ Bonds Debt Interim Completed Total December 31, Of 1983 Service Construction Construction Construction 1985 1984 (Memorandum Only) S 35,956 $ 710,413 S (413) $ 45,612 $ 45,199 S 755,612 S 536,348 8,542 14,623 473 473 15,096 6,291 6,291 7,776 28,800 28,800 50,900 1,668 1,668 2,358 (1,668) (1,668) (1,358) 685. 685 4,104 10,125 1,895 1,895 12,020 13,850 26,387 164,284 45,175 45,175 209,459 329,149 -_ - - -- 14,800 14, 800 4,104 4,069 178 178 4,247 13,952 50,366 50,366 105,374 S 79,093 $1,004,456 $ (413) $ 93,333 $ 92,920 $1,097,376 $1,057,349 $ 107 3 107 $ 107 S 1,532 $ 9,235 $ 1,211 1,211 10,446 _ 12 12 12 155 7,083 413 $ 71,000 286,000 286,000 340,000 71,000 2'95,235 107 1,223 1,330 296,565 349,183 8,093 63,935 63,935 43,699 1,626 645,286 92,110 92,110 737,396 705,715 (520) (520) (520) (42,874) 8,093 709,221 (520) 92,110 91,590 800,811 708,166 $ 79,093 $1,004,456 $ (413) $ 93,333 $ 92,920 $1,097,376 $1,057,349 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA , SPECIAL ASSESSMENT FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - For The Year Ended December 31, 1985 Debt Service G.O. Storm Sewer $249,000 $165,000 $80,000 Improvement G.O. Closed G.O. G.O. Total Bonds Bonds Bond Bonds Bonds Debt Of 1971 Of 1976 Fund Of 1982 Of 1982 Service Revenue: General property taxes: Current and delinquent $ 10,353 $ 10,967 S 1,225 $ 47,422 $ 69,967 Other 3 3 13 19 Total general property taxes 10,356 10,970 1,225 47,435 69,986 - Intergovernmental: State: Homestead credit 839 916 -0- 3,967 5,722 Special assessments: Interest on assessments 155 469 8,076 7,862 $ 8,600 25,162 Direct charges Adjustments and other 21 221 409 896 333 1,880 New rolls Total special assessments 176 690 8,485 8,758 8,933 27,042 Interest on investments 2,140 5,900 39,190 1,272 1,538 50,040 - Interest - other 4,533 4,533 Connection charges 18,809 18,809 Total revenue 13,511 18,476 72,242 61,432 10,471 176,132 Expenditures: Debt service: Interest 3,660 2,100 16,175 . 6,505 28,440 Paying agent fees 50 106 50 206 Bonding costs Total debt service 3,710 2,206 -0- 16,225 6,505 28,646 - Construction costs -0- -0- -0- -0- -0- -0- Total expenditures 3,710 2,206 -0- 16,225 6,505 28,646 Revenue over (under) expenditures 9,801 16,270 72,242 45,207 3,966 147,486 Other increases (decreases): Increase (decrease) in amount to be provided (9,801) (45,207) (55,008) Retirement of bonds Bond defeasance Transfer from Special Assessment Fund 1,764 1,764 Transfer to Special Assessment Fund (44,634) (44,634) Transfer from General Fund Transfer from Enterprise Fund Fund escrow account - Reclassification of prior period construction costs Total other increases (decreases) (9,801) -0- (42,870) (45,207) -0- (97,878) Net Increase (decrease) in fund balance -0- 16,270 29,372 -0- 3,966 49,608 Fund balance (deficit) - January 1 -0- 39,572 615,914 -0- 4,127 659,613 Fund balance (deficit) - December 31 $ -0- $ 55,842 $645,286 $ -0- $ 8,093 $709,221 CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 15 Construction Funds 1982 Sewer 58th E 59th Total Interim Completed and 1983 Street Total December 31, Construction Construction Water Improvements Improvement Construction 1985 1984 $ 69,967 $ 68,544 19 69,986 68,544 5,722 5,910 $ 4,628 $ 4,628 29,790 26,192 _ 13,107 635 $ 532 1,167 3,047 (110) 78,183 5,263 532 5,795 32,837 117,372 2,775 $ 11 2,786 52,826 111,497 4,533 12,293 18,809 66,166 -0- 8,038 532 S -0- 11 8,581 184,713 381,782 28,440 73,237 206 576 2,520 -0- -0- -0- -0- -0- -0- 28,646 76,333 4,577 5,701 4,276 _ 11001 1,569 17,124 17,124 64.690 4,577 5,701 4,276 1,001 1,569 17,124 45,770 141,023 (4,577) 2,337 (3,744) (1,001) (1,558) (8,543) 138,943 240,759 (55,008) (79,644) 805,000 (602,088) ... 40,364 4,270 44,634 46,398 639,896 (1,764) (1,764) (46,398) (639,896) 8,954 7,180 2,254 9,434 9,434 (724) (724) (724) 2,522 7,180 -0- 38,600 4,270 1,530 51,580 (46,298) 134,744 2,603 2,337 34,856 3,269 (28) 43,037 92,645 375,503 (3,123) 89,773 (34,856) (3,269) 28 48,553 708,166 332,663 $ (520) $ 92,110 $ -0- $ -0- $ -0- $ 91,590 $800,811 $708,166 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA _ Statement 16 ENTERPRISE FUND BALANCE SHEET December 31, 1985 - December 31, _ 1985 1984 Assets Current assets: Cash and investments $ 378,442 $ 293,457 Due from other funds 819 Accounts receivable: - Customers 49,003 48,371 Certified to County 2,332 1,488 Other 52 471 _ Prepaid MWCC 6,593 4,125 Due from other governmental units 6,626 22,378 Total current assets 443,048 371,109 _ Utility plant in service - at cost: Buildings and structures 504,040 504,040 Machinery and equipment 60,464 60,464 Distribution and collection system 2,062,834 2,062,834 - Total 2,627,338 2,627,338 Less: Allowance for depreciation (572,108) (520,635) Net fixed assets 2,055,230 2,106,703 Total assets $2,498,278 $2,477,812 Liabilities And Fund Equity Current Liabilities: - Accounts payable $ 4,241 $ 2,699 Due to other governmental units 14,115 4,849 Due to other funds 126 _ Accrued interest 3,197 3,488 Meter deposits 52,296 50,278 Bonds payable 15,000 15,000 Total current liabilities 88,975 76,314 Non - current liabilities: Bonds payable 140,000 155,000 Total liabilities 228,975 231,314 - Fund equity: Contributions from property owners - net 1,810,748 1,852,582 - Retained earnings: Undesignated 458,555 393,916 Total fund equity 2,269,303 2,246,498 Total liabilities and fund equity $2,498,278 $2,477,812 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 17 ENTERPRISE FUND _ STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1985 Totals Water Sewer December 31, Operating Operating 1985 1984 Revenue: Customer billings $ 81,792 $ 118,088 $ 199,880 $ 183,028 _ Penalties 965 972 1,937 1,733 Total operating revenue 82,757 119,060 201,817 184,761 Expenses: Contractual services 26,832 8,556 35,388 47,053 MWCC charges 65,253 65,253 52,960 Materials and supplies 4,316 769 5,085 3,652 ... Administrative and personnel charge 15,000 15,000 30,000 30,000 Depreciation: On purchased assets 7,559 2,079 9,638 9,858 _ On contributed assets 21,070 20,765 41,835 41,835 Total operating expenses 74,777 112,422 187,199 185,358 Operating income (loss) $ 7,980 $ 6,638 14,618 (597) Other income (expenses): Interest on investments 28,093 25,832 Plumbing permits 184 531 Refunds and reimbursements 2,814 1,410 Charges for services 293 829 Bond interest (13,660) (14,513) Paying agent fees (104) (103) Adjustment to sale of property (10,000) Total other income 17,620 3,986 Net income 32,238 3,389 Other increases (decreases): Transfer to special assessment fund (9,434) Credit arising from transfer of depreciation to contributions from property owners 41,835 41,835 Total other increases (decreases) 32,401 41,835 Net increase in retained earnings 64,639 45,224 Retained earnings - January 1 393,916 348,692 Retained earnings - December 31 $ 458,555 $ 393,916 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 18 ENTERPRISE FUND STATEMENT OF CHANGES IN FINANCIAL POSITION For The Year Ended December 31, 1985 Totals December 31, 1985 1984 Sources of financial resources: Operations: Net income $ 32,238 $ 3,389 - Expenses not requiring outlay of working capital - depreciation 51,473 51,693 Total sources from operations 83,711 55,082 _ Total sources 83,711 55,082 Uses of financial resources: Bond principal - long -term portion 15,000 15,000 Transfers to other funds 9,433 Total uses 24,433 15,000 Net increase in working capital $ 59,278 $ 40,082 Components of increase in working capital: Cash and investments $ 84,985 $ 70,881 Accrued interest receivable (1,178) Accounts receivable 213 (12,821) Due from other governmental units (15,752) 13,561 Due from other funds (819) (16,681) Accounts receivable - certified 844 (759) Prepaid MWCC 2,468 (1,418) _ Accounts payable (1,542) (122) Accrued interest payable 291 188 Due to other governmental units (9,266) (4,500) Due to other funds (126) 399 Meter deposits (2,018) (2,468) Bonds payable - current portion (5,000) Net increase in working capital $ 59,278 $ 40,082 The accompanying notes are an integral part of these financial statements. -- CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 19 TRUST AND AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For The Year Ended December 31, 1985 Balance Balance ._ January 1, December 31, 1985 Additions Deletions 1985 Developers' Deposits Fund: Assets Cash (overdraft) $ (493) $ 11,419 $ 11,825 $ (899) Due from developers 1,666 528 909 1,285 Due from County 152 152 Due from other funds 152 152 Total assets $ 1,325 $ 12,099 $ 12,886 $ 538 Liabilities Accounts payable $ 424 $ 496 $ 424 $ 496 Due to developers 901 42 901 42 Total liabilities $ 1,325 $ 538 $ 1,325 $ 538 Investment Fund: Assets Cash (overdraft) $(1,580,087) $ 7,184,060 $ 7,574,270 $(1,970,297) Investments 1,570,777 7,769,471 7,387,655 1,952,593 Accrued interest 9,310 39,962 31,568 17,704 Total assets $ -0- $14,993,493 $14,993,493 $ -0- Total Agency: Assets Cash (overdraft) and _ investments $ (9,803) $14,964,950 $14,973,750 $ (18,603) Accrued interest receivable 9,310 39,962 31,568 17,704 Due from developers 1,666 528 909 1,285 Due from County 152 152 Due from other funds 152 152 Total assets $ 1,325 $15,005,592 $15,006,379 $ 538 Liabilities Accounts payable $ 424 $ 496 $ 424 $ 496 Due to developers 901 42 901 42 Total liabilities $ 1,325 $ 538 $ 1,325 $ 538 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 20 — STATEMENT OF GENERAL FIXED ASSETS December 31, 1985 (UNAUDITED) Balance Balance January 1, December 31, Description 1985 Additions Deletions 1985 Land $ 52,000 $ 1,375 $ 50,625 Land improvements 49,921 49,921 Buildings and structures 308,644 $187,864 496,508 Machinery and equipment 130,186 34,225 150 164,261 Furniture and fixtures 15,799 2,559 18,358 Totals $556,550 $224,648 $ 1,525 $779,673 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 21 _ STATEMENT OF GENERAL LONG -TERM DEBT December 31, 1985 December 31, ._ 1985 1984 Amount Available and to be Provided for the Retirement of Long -Term Debt Bonds: Amount available in Debt Service Funds $ 4,141 $ 2,456 Amount to be provided from future tax levies 190,859 197,544 Compensated absences: Amount to be provided 15,287 13,614 Total available and to be provided $ 210,287 $ 213,614 General Long -Term Debt Payable Bonds payable: Storm Sewer Bonds $ 195,000 $ 200,000 Compensated absences payable 15,287 13,614 Total general long -term debt payable $ 210,287 $ 213,614 ,,� The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS December 31, 1985 Final Net Payment Interest Dated Due Rate Bonded Indebtedness: General Debt: Storm Sewer Bonds of 1982 12/1/82 12/1/03 10.12% Special assessment bonds: 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 General Obligation Improvement Bonds of 1982 8/1/82 8/1/93 10.75 - General Obligation Improvement Bonds of 1983 12/15/83 2/1/93 8.60 Total special assessment bonds Revenue Bonds: - General Obligation Water and Sewer Bonds of 1980 10/1/80 10/1/94 7.50 Total Indebtedness - ... CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 1 _ Bonds Principal Interest Authorized Retired Outstanding Due Due And Issued To Date At 12/31/85 In 1986 In 1986 $ 205,000 $ 10,000 $ 195,000 $ 5,000 $ 19,403 173,000 113,000 60,000 10,000 3,115 249,000 229,000 20,000 20,000 1,060 165,000 30,000 135,000 15,000 14,600 80,000 9 71,000 9,000 5,765 667,000 381,000 286,000 54,000 24,540 200,000 45,000 155,000 15,000 12,788 $1,072,000 $ 436,000 $ 636,000 $ 74,000 $ 56,731 - Y CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 2 " SPECIAL ASSESSMENT BONDS SCHEDULE OF DEBT SERVICE PAYMENTS TO MATURITY - December 31, 1985 G.O. Storm $165,000 $80,000 Sewer G.O. G.O. Improvement $249,000 Improvement Improvement Bonds G.O. Bonds Bonds Bonds Of 1971 Of 1976 Of 1982 Of 1983 Total _ Bonds payable $ 60,000 $ 20,000 $ 135,000 $ 71,000 $ 286,000 Future interest payable 10,235 1,060 70,563 24,615 106,473 Totals $ 70,235 $ 21,060 $ 205,563 $ 95,615 $ 392,473 Year of maturity: 1986 $ 13,115 $ 21,060 $ 29,600 $ 14,764 $ 78,539 1987 12,560 28,025 14,013 54,598 1988 11,995 26,450 13,252 51,697 1989 11,425 24,875 12,483 48,783 _ 1990 10,855 23,263 11,705 45,823 1991 10,285 26,650 10,917 47,852 1992 24,450 10,121 34,571 1993 22,250 8,360 30,610 - Totals $ 70,235 $ 21,060 $ 205,563 $ 95,615 $ 392,473 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 3 REVENUE BONDS AND GENERAL DEBT BONDS DEBT SERVICE PAYMENTS TO MATURITY December 31, 1985 Special Taxing District $205,000 Water And Sewer Storm Sewer Revenue Bond Bond of 1982 Bonds payable $ 155,000 $ 195,000 Future interest payable 69,000 218,703 Total $ 224,000 $ 413,703 Year of maturity: 1986 $ 27,788 $ 24,403 1987 / 26,625 23,977 1988 25,425 23,553 1989 24,225 28,102 1990 22,987 27,203 1991 26,750 26,277 1992 25,100 25,353 1993 23,400 24,377 1994 21,700 23,403 1995 22,402 1996 21,403 1997 20,377 1998 24,353 1999 22,815 2000 21,270 2001 19,710 2002 18,150 2003 16,575 Total $ 224,000 $ 413,703 CITY OF OAK PARK HEIGHTS, MINNESOTA CONSTRUCTION COSTS BY PROJECT For The Year Ended December 31, 1985 — Capital Project Funds Capital _ Improvement Storm Sewer Fund Drainage Construction Costs Sealcoating Improvements Contractor $ 21,569 $183,935 Engineering 2,879 40,746 _ Legal, Fiscal, Easements 500 12,006 Other 134 1,210 Total costs $ 25,082* $237,897* Current Year $ 25,082 $ 3,940 Prior Years $ -0- $233,957 * Completed at December 31, 1985 _ CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 4 Special Assessment 1982 Water and Sewer Interim Brekke EDP Anderson /Lindquist Construction Fund Park System Water and Sewer NSP Improvements Acquisition Extensions Manholes $163,647 $247,849 $ 12,332 16,996 38,201 1,826 50 10,869 60 7,171 $ 23,159 666 $187,864* $ 23,159 $297,585* $ 14,218* $ 14,742 $ 23,159 $ 4,276 $ 4,577 $173,122 $ -0- $293,309 $ 9,641 - - CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 5 SECURITIES FOR DEPOSITS December 31, 1985 Description Amount Federal GNMA Trust $ 1,436,199 First Mortgage 171,000 FHLB 300,000 Total $ 1,907,199 The above securities have been: Assigned By: Held By: Amount Cosmopolitan State Bank of First National Bank of St. Paul $ 300,000 Stillwater Washington Federal Savings State Street Bank and Trust - and Loan Pittsburgh 1,436,199 Washington Federal Savings First National Bank of Stillwater and Loan 171,000 ... Total $ 1,907,199 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 6 - INSURANCE IN FORCE December 31, 1985 - Coverage Amount Umbrella liability: $ 1,000,000 Bodily injury 600,000/600,000 - Property damage 100,000/100,000 Comprehensive Auto including: - Non -owned Hired (CSL) 500,000 Employers Liability (Each accident) 100,000 - Host liquor 500,000 Depositors Forgery 50,000 Faithful performance blanket bond 50,000 Property Scheduled location 1,269,775 Miscellaneous radio equipment 12,050 Miscellaneous garden equipment 32,900 Workmen's compensation Statutory Business Auto Policy: Liability CSL 500,000 - Uninsured motorist 100,000 Underinsured motorist 100,000 Physical damage: Comprehensive A.C.V. Collision ($250 deductible) A.C.V. Public officials' errors and omissions ($500 deductible) 500,000/1,000,000 Public employees bond: r Clerk - treasurer 50,000 Deputy Clerk - treasurer 50,000 Police Professional 1,000,000/1,000,000 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 7 _ FUTURE SCHEDULED TAX LEVIES December 31, 1985 ... Special Taxing District Special Assessment Bonds Storm Sewer Year Of Year of Bond Issue Bonds Storm Sewer Total Collection 1971 1982 Total Of 1982 Construction All Bonds 1986 $ 22,000 $ 12,000 $ 34,000 $ 25,623 $ 21,650 $ 81,273 1987 11,000 7,000 18,000 25,177 43,177 1988 12,000 7,000 19,000 24,731 43,731 1989 12,000 7,000 19,000 29,508 48,508 1990 12,000 8,000 20,000 28,563 48,563 _ 1991 8,000 8,000 27,592 35,592 1992 8,000 8,000 26,621 34,621 1993 25,597 25,597 1994 24,593 24,593 1995 23,523 23,523 1996 22,473 22,473 1997 21,397 21,397 1998 25,571 25,571 1999 23,956 23,956 2000 22,333 22,333 2001 20,695 20,695 2002 19,057 19,057 2003 17;404 17,404 Totals $ 69,000 $ 57,000 $ 126,000 $ 434,414 $ 21,650 $ 582,064 CITY OF OAK PARK HEIGHTS, MINNESOTA _ Exhibit 8 TAXABLE VALUATIONS, TAX LEVIES AND MILL RATES 1985 1984 Storm Sewer Storm Sewer _ District Total City District Total City Taxable valuations: Real property $35,393,500 $49,011,167 $36,910,438 $49,052,999 Personal property 875,867 850,583 — Total 35,393,500 49,887,034 36,910,438 49,903,582 Fiscal disparity adjustment: Distribution 455,107 1,188,305 1,105,582 Contribution (2,590,267) (3,156,410) (1,812,148) (2,114,690) Total (2,135,160) (1,968,105) (1,812,148) (1 — Total taxable valuation $33,258,340 $47,918,929 $35,098,290 $48,894,474 Tax levies and mill rates: Year of levy 1985 1984 Year of collection 1986 1985 Amount Mill Amount Mill Levied Rates Levied Rates City -wide levies: Revenue $631,309 13.510 $600,000 12.371 Bonded debt 33,486 .717 75,000 1.548 Total $664,795 14.227 $675,000 13.919 Storm Sewer District: Storm Sewer Bonds of 1982 $ 40,402 1.232 $ 47.719 1.178 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 9 DEBT SERVICE ESCROW AGENT ACCOUNT BALANCE SHEET December 31, 1985 First Trust St. Paul December 31, Assets 1985 Cash $ 1,668 Investments 498,003 Total cash and investments 499,671 Amount to be provided by future interest 255,329 Total assets $ 755,000 Liabilities Liabilities: Bonds payable $ 755,000 Total liabilities $ 755,000 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 10 DEBT SERVICE ESCROW AGENT ACCOUNT STATEMENT OF CHANGES IN FUND BALANCE For The Year Ended December 31, 1985 Amount to be provided - January 1, 1985 $(222,410) Additions: Interest received on investments 5,838 Deductions: Bond interest and paying agent fees 38,757 Amount to be provided - December 31, 1985 $(255,329) CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 11 DEBT SERVICE ESCROW AGENT ACCOUNT BONDS PAYABLE December 31, 1985 First Trust St. Paul $900,000 $500,000 Water and Sanitary Water and Sanitary Sewer Improvement Sewer Improvement Bonds Of 1967 Bonds Of 1968 Total Bonds payable $ 445,000 $ 310,000 $ 755,000 Future interest payable 139,710 111,521 251,231 Totals $ 584,710 $ 421,521 $ 1,006,231 Year of maturity: 1986 $ 55,775 $ 35,500 $ 91,275 1987 54,165 34,500 88,665 1988 52,555 33,500 86,055 1989 50,945 37,500 88,445 1990 49,335 36,250 85,585 - 1991 47,690 35,000 82,690 1992 46,045 33,750 79,795 1993 49,400 32,500 81,900 1994 47,520 31,250 78,770 1995 45,640 30,000 75,640 1996 43,760 28,750 72,510 1997 41,880 27,500 69,380 1998 25,521 25,521 Totals $ 584,710 $ 421,521 $ 1,006,231