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Home My WebLink AboutAnnual Financial Report CITY OF OAK PARK HEIGHTS, MINNESOTA ANNUAL FINANCIAL REPORT DECEMBER 31, 1986 CITY OF OAK PARK HEIGHTS, MINNESOTA TABLE OF CONTENTS Organization Auditor's Report General Purpose Financial Statements Combined Balance Sheet - All Fund Types and Account Groups Statement 1 Combined Statement of Revenue, Expenditures and Changes in Fund Balance - All Governmental Fund Types Statement 2 Combined Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual - General and Special Revenue Fund Types Statement 3 Combined Statement of Revenue, Expenses and Changes in Retained Earnings - Proprietary Fund Type Statement 4 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 Special Assessment Funds: Combining Balance Sheet Statement 14 Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 15 CITY OF OAK PARK HEIGHTS, MINNESOTA TABLE OF CONTENTS 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 Securities for Deposit Exhibit 4 Insurance in Force Exhibit 5 Future Scheduled Tax Levies Exhibit 6 Taxable Valuations, Tax Levies and Mill Rates Exhibit 7 Debt Service Escrow Agent Account: Balance Sheet Exhibit 8 Statement of Changes in Fund Balance Exhibit 9 Bonds Payable Exhibit 10 Statistical Section General and Special Revenue Funds - Expenditures By Function - Years 1978 through 1986 Table 1 General and Special Revenue Funds - Revenue By Source - Years 1978 through 1986 Table 2 Property Tax Levies and Collections - Years 1978 through 1986 Table 3 Special Assessment Collections - Years 1982 through 1986 Table 4 CITY OF OAK PARK HEIGHTS, MINNESOTA ORGANIZATION December 31, 1986 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 'I — il.l- lvaLlltlieuRl!iINN 11lIII,.$L'ILI,Ik Illypllll!91.'3hLmin"INI IIIIINNII'1 Yl!1JII�IIy!LAII LfWJk k.Ill'JII II a III IIMII IIIU:w411111kkIllillYa 1111. Ml 1 9 1 tklli I A bli Loki. AN lmoul I UI..i II INI Ill 111 klkllllllllll 11..IIIla1., NA.. II klJll IN 11 .. - J J J S - ' I I r� z ' • �; li — i� 3 n 0 " 1, � *0 fAmlb" We o m . vubmam - - , , . � mi OwAgifift — — . 4 — - -- AV i Y _ - - md — . . I SIN - . -- *a trfmirlb"If -or 4w vows"Ar µ I `__ i X11- _ . at most" dip - MAO 14 OW I k . _.• — _ _ .. - w.L 1 1 hall.!: nR... H1 WILN" ni61 .I`�kik ^1v11A JM! IW; tlLIIa, I ��,. YIWteV: Le: ItlNWO/!! I!! 1 1C1 1' J6' Ak'IL':3�'.'1L�_OJ11 II IIIIL E�.Illh ripilu.adll!.�VI Yllil�lulllllilj,Alo -. a Ji�iYlYdall !Id��11i�IVYLYitltlfYllila !u Y! _ [iE l� (�Vl �Ila Yru �Yivy�Yl u�Y To the Honorable Mayor and Members of the City Council City of Oak Park Heights Page 2 The accompanying statistical information presented in Tables 1 through 4 is also not necessary for a fair presentation of these financial statements, but are presented as additional statistical data. These statistical information tables were not audited by us, and accordingly, we do not express an opinion on them. March 13, 1987 VOTO, TAUTGES, REDPATH & CO., LTD. Certified Public Accountants G E N E R A L P U R P O S E F I N A N C I A L S T A T E M E N T S" CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1986 Governmental Fund Types Special Debt Capital Assets General Revenue Service Project Cash (overdraft) and investments $ 740,283 $ 35,989 $ 4,842 $ 173,354 Accrued interest receivable Accounts receivable 5,608 Due from other funds 77 22 2,897 Due from other governmental units 2,672 Due from developers Interfund loan receivable Prepaid expenses Taxes receivable: Delinquent 23,262 915 674 Allowances and deferments (23,262) (915) (674) Due from county 7,518 299 243 Special assessments receivable Fixed assets - net Amount available and to be provided Total assets $ 756,158 $ 35,989 $ 5,163 $ 176,494 Liabilities And Fund Equity Liabilities: Accounts payable $ 53,941 $ 318 Salaries payable 3,478 Accrued interest Due to other governmental units 1,854 Due to other funds 4,365 Interfund loan payable Deposits /refunds payable Compensated absences payable Bonds payable Total liabilities 63,638 318 $ -0- $ -0- Fund equity: Investment in fixed assets Contributions - net Retained earnings: Undesignated Fund balance: Reserved 5,163 Unreserved: Designated 35,671 178,574 Undesignated 692,520 (2,080) Total fund equity 692,520 35,671 5,163 176,494 Total liabilities and fund equity $ 756,158 $ 35,989 $ 5,163 $ 176,494 CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 1 Fiduciary Account Groups Proprietary Fund Type General General Totals (Memorandum Only) Special Fund Type Trust and Fixed Long -Term December 31, Assessments Enterprise Agency Assets Debt 1986 1985 (Unaudited) $ 881,411 $ 429,969 $ (19,331) $ 2,246,517 $ 1,946,497 19,935 19,935 17,704 4,935 56,207 328 67,078 63,286 4,474 2,500 9,970 17,181 2,370 5,042 17,804 2,387 821 3,208 1,285 28,800 7,737 7,737 6,593 1,865 26,716 15,762 (1,865) (26,716) (15,762) 455 8,515 6,571 200,878 200,878 240,526 2,003,879 $ 816,104 2,819,983 2,834,903 $ 208,055 208,055 210,287 $1,094,540 $2,502,662 $ 1,753 $ 816,104 $ 208,055 $ 5,596,918 $ 5,391,437 $ 2,804 $ 534 $ 57,597 $ 53,949 3,478 2,502 2,906 2,906 3,197 1,238 3,092 23,115 $ 5,232 373 9,970 17,181 28,800 12 55,489 1,219 56,720 52,350 $ 18,055 18,055 15,287 232,000 140,000 190,000 562,000 636,000 237,244 202,810 1,753 $ -0- 208,055 713,818 832,381 816,104 816,104 779,673 1,768,913 1,768,913 1,810,748 530,939 530,939 458,555 7,621 12,784 68,076 873,913 1,088,158 806,075 (24,238) 666,202 635,929 857,296 2,299,852 -0- 816,104 -0- 4,883,100 4,559,056 $1,094,540 $2,502,662 $ 1,753 $ 816,104 $ 208,055 $ 5,596,918 $ 5,391,437 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES For The Year Ended December 31, 1986 Special General Revenue Revenue: General property taxes $ 579,557 Intergovernmental 168,648 $ 23,857 Licenses and permits 22,716 Fines and forfeits 28,474 Interest on investments 38,486 2,243 Interest - other Charges for current services 35,031 Special assessments Connection charges Sale of property 1,880 Other 1,141 11,490 Total revenue 875,933 37,590 Expenditures: Current: General government 201,899 4,743 Public safety 286,424 Streets and highways 53,558 Sanitation 97,266 Recreation 94,351 Capital outlay 10,901 22,705 Debt service: Principal Interest Paying agent fees Construction costs Total expenditures 744,399 27,448 Revenue over expenditures 131,534 10,142 Other increases (decreases): Transfers from other funds 7 Transfers to other funds (104,913) (7,500) Fund escrow account Total other increases (decreases) (97,413) (7,500) Net increase in fund balance 34,121 2,642 Fund balance - January 1 656,865 33,029 Residual equity transfer 1,534 -0- Fund balance - December 31 $ 692,520 $ 35,671 CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 2 Totals (Memorandum Only) Debt Capital Special December 31, Service Project Assessment 1986 1985 $ 23,147 $ 19,506 $ 31,054 $ 653,264 $ 673,484 2,070 1,749 2,748 199,072 206,017 22,716 15,569 28,474 27,630 333 9,657 54,653 105,372 103,064 2,880 2,880 4,533 35,031 33,068 20,603 20,603 32,837 30,720 30,720 18,809 1,880 1,525 12,631 3,323 25,550 30,912 142,658 1,112,643 1,119,859 11,325 217,967 176,495 286,424 258,079 53,558 70,352 97,266 75,169 94,351 85,002 17,404 51,010 37,471 5,000 5,000 5,000 19,403 2,880 24,539 46,822 52,801', 125 356 481 256 2,700 2,700 59,234 24,528 22,984 36,220 855,579 819,859 1,022 7,928 106,438 257,064 300,000 104,500 413 112,413 284,832 (112,413) (275,398) (1,010) -0- 104,500 413 -0- 8,424 1,022 112,428 106,851 257,064 308,424 4,141 65,600 750,445 1,510,080 1,201,656 -0- (1,534) -0- -0- -0- $ 5,163 $ 176,494 $ 857,296 $ 1,767,144 $ 1,510,080 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL AND SPECIAL REVENUE FUND TYPES For The Year Ended December 31, 1986 General Fund Over (Under) Budget Actual Budget Revenue: General property taxes $ 589,207 $ 579,557 $ (9,650) Intergovernmental 163,443 168,648 5,205 Licenses and permits 15,225 22,716 7,491 Fines and forfeits 18,000 28,474 10,474 Interest on investments 35,000 38,486 3,486 Charges for current services 32,000 35,031 3,031 Sale of property 1,880 1,880 Other 2,000 1,141 (859) Total revenue 854,875 875,933 21,058 Expenditures: Current: General government 163,735 201,899 38,164 Public safety 280,425 286,424 5,999 Streets and highways 69,250 53,558 (15,692) Sanitation 104,000 97,266 (6,734) Recreation 98,200 94,351 (3,849) Contingency 31,425 (31,425) Capital outlay 10,375 10,901 526 Total expenditures 757,410 744,399 (13,011) Revenue over (under) expenditures 97,465 131,534 34,069 Other increases (decreases): Transfer from other funds 7,500 7,500 Transfer to other funds (104,500) (104,913) (413) Total other increases (decreases) (97,000) (97,413) (413) Net increase (decrease) in fund balance $ 465 34,121 $ 33,656 Fund balance - January 1 656,865 Residual equity transfer 1,534 Fund balance - December 31 $ 692,520 CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 3 Totals (Memorandum Only) Special Revenue 1986 Over Over (Under) (Under) 1985 Budget Actual Budget Budget Actual Budget Actual $ 589,207 $ 579,557 $ (9,650) $ 559,613 $ 38,000 $ 23,857 $ (14,143) 201,443 192,505 (8,938) 196,654 15,225 22,716 7,491 15,569 18,000 28,474 10,474 27,630 2,243 2,243 35,000 40,729 5,729 43,997 32,000 35,031 3,031 33,068 1,880 1,880 1,525 11,490 11,490 2,000 12,631 10,631 3,323 38,000 37,590 (410) 892,875 913,523 20,648 881,379 4,500 4,743 243 168,235 206,642 38,407 176,495 280,425 286,424 5,999 258,079 69,250 53,558 (15,692) 70,352 104,000 97,266 (6,734) 75,169 98,200 94,351 (3,849) 85,002 31,425 (31,425) 40,000 22,705 (17,295) 50,375 33,606 (16,769) 14,312 44,500 27,448 (17,052) 801,910 771,847 (30,063) 679,409 (6,500) 10,142 16,642 90,965 141,676 50,711 201,970 7,500 7,500 66,500 (7,500) (7,500) (112,000) (112,413) (413) (229,286) (7,500) (7,500) -0- (104,500) (104,913) (413) (162,786) $ (14,000) 2,642 $ 16,642 $ (13,535) 36,763 $ 50,298 39,184 33,029 689,894 650,710 -0- 1,534 -0- $ 35,671 $ 728,191 $ 689,894 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 4 COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPE For The Year Ended December 31, 1986 Totals December 31, 1986 1985 Revenue: Customer billings $ 220,191 $ 199,880 Penalties 2,511 1,937 Total operating revenue 222,702 201,817 Expenses: Contractual services 31,292 35,388 MWCC charges 83,373 65,253 Materials and supplies 16,860 5,085 Administrative charges 30,000 30,000 Depreciation 51,351 51,473 Total operating expenses 212,876 187,199 Net income (loss) 9,826 14,618 Other income (expense): Interest on investments 27,987 28,093 Plumbing permits 368 184 Refunds and reimbursements 2,033 2,814 Charges for services 439 293 Gain on sale of truck 2,500 Interest (12,500) (13,660) Paying agent. fees (104) (104) Total other income 20,723 17,620 Net income 30,549 32,238 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) 41,835 32,401 Net increase in retained earnings 72,384 64,639 Retained earnings - January 1 458,555 393,916 Retained earnings - December 31 $ 530,939 $ 458,555 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 5 COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION PROPRIETARY FUND TYPE For The Year Ended December 31, 1986 Totals December 31, 1986 1985 Sources of working capital: Operations: Net income $ 30,549 $ 32,238 Expenses not requiring outlay of working capital - depreciation 51,351 51,473 Total working capital provided from operations 81,900 83,711 Total sources of working capital 81,900 83,711 Uses of working capital: Bond principal - long -term portion 15,000 15,000 Transfer to other funds 9,433 Total uses of working capital 15,000 24,433 Total net increase in working capital $ 66,900 $ 59,278 Components of increase in working capital: Cash and investments $ 51,527 $ 84,985 Accounts receivable 5,525 213 Due from other governmental units (4,256) (15,752) Due from other funds 2,500 (819) Accounts receivable - certified (705) 844 Prepaid MWCC 1,144 2,468 Accounts payable 1,437 (1,542) Accrued interest payable 291 291 Due to other governmental units 12,877 (9,266) Due to other funds (247) (126) Meter deposits (3,193) (2,018) Net increase in working capital $ 66,900 $ 59,278 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, 1986 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, 1986 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, 1986 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, 1986 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. In all the funds, all budgetary appropriations lapse at year -end. Any appropriations that need to be carried forward to the next year must be reappropriated by the City Council. In the absence of such approval, all appropriations lapse at year -end. Significant budget variances are as follows for the current year: Over (Under) Budget Actual Budget General Fund: Mayor and Council: Current $ 44,950 $ 81,434 $ 36,484 City Hall: Current 14,225 10,546 (3,679) General Management: Current 17,300 21,787 4,487 Police Department: Current 265,950 275,055 9,105 Streets and Alleys: Current 11,200 7,824 (3,376) Snow and Ice Removal: Current 25,000 14,886 (10,114) CITY OF OAK PARK HEIGHTS, MINNESOTA Page 4 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1986 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) BUDGETARY DATA (Continued) The $36,484 excess of expenditure over budget for Mayor and Council resulted primarily from higher than anticipated insurance rates. The $3,679 favorable budget variance for City Hall is primarily the result of lower than anticipated expenditures for utilities. The $4,487 excess of expenditure over budget for General Management resulted primarily from higher than anticipated expenditures for computer supplies and a contribution to Watershed District. The $9,105 excess of expenditures over budget for Police was primarily due to additional salaries. The $3,376 favorable budget variance for Streets and Alleys is primarily the result of fewer street repairs than anticipated. The $10,114 favorable budget variance for Snow and Ice Removal is primarily the result of lower 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 INVESTMEN'T'S Deposits In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council all of which are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 1100 of the deposits not covered by insurance or bonds (140% in the case of mortgage notes pledged). Authorized collateral includes the legal investments described below, as well as certain first mortgage notes, and certain other state or local government obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City treasurer or in a financial institution other than that furnishing the collateral. At December 31, 1986 the carrying amounts of the City's deposits was $2,246,520 all of which was covered by federal depository insurance or collateralized by securities held in the City's name. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 5 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1986 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) ASSETS - Continued CASH AND INVESTMENTS - Continued Investments Minnesota Statutes authorize the City to invest in the following: a. Direct obligations or obligations guaranteed by the United States or its agencies. b. Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above. c. General obligations of the State of Minnesota or any of its municipalities. d. Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System. e. Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. f. Repurchase or reserve repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. Government securities to the Federal Reserve Bank of New York, certain Minnesota securities broker - dealers, or a bank qualified as a depository. During 1986, the City chose not to invest in any of the above type of invest- ments. 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 6 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1986 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) 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 authori- ties. '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. 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 January) 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 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 1986 and 1985 totaled $16,801 and $11,195 respectively. Receipt of property taxes from this "fiscal disparities pool" does not increase or decrease total tax revenue. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 7 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1986 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) 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. 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 8 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1986 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) FIXED ASSETS - GENERAL - Continued A summary of changes in General Fixed Assets is as follows: Balance Balance 1/1/86 Additions Deletions 12/31/86 Land $ 100,546 $ 100,546 Buildings and structures 496,508 496,508 Machinery and equipment 164,261 $ 47,454 $ 11,422 200,293 Furniture and fixtures 18,358 399 18,757 Totals $ 779,673 $ 47,853 $ 11,422 $ 816,104 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. 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 1986 1985 Purchased assets: Water 5 -50 years $ 7,498 $ 7,559 Sewer 5 -50 years 2,018 2,079 Contributed assets: Water 50 years 21,070 21,070 Sewer 50 years 20,765 20,765 Totals $ 51,351 $ 51,473 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 9 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1986 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) FIXED ASSETS - PROPRIETARY FUNDS - Continued 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, 1986 is as follows: Buildings and structures $ 504,040 Machinery and equipment 53,848 Water and sewer lines 2,062,834 Total 2,620,722 Less: Accumulated depreciation (616,843) Net fixed assets $2,003,879 CITY INDEBTEDNESS The following is a schedule of bond transactions of the City for the year ended December 31, 1986. General Revenue Special Obligation Bonds Assessment Total Bonds payable - January 1, 1986 $ 195,000 $ 155,000 $ 286,000 $ 636,000 Bonds retired in 1986 5,000 15,000 54,000 74,000 Bonds payable - December 31, 1986 $ 190,000 $ 140,000 $ 232,000 $ 562,000 All bond issues outstanding at December 31, 1986 are backed by the full faith and credit of the City, including special assessment bond issues. The outstanding balance at December 31, 1986, 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. On November 16, 1984, the City defeased the $900,000 General Obligation Sanitary Sewer Improvement Bonds of 1967 and the $500,000 General Obligation Water and Sanitary Sewer Improvement Bonds of 1968 by placing sufficient monies in an irrevocable trust to provide for all future debt service payments of these bond issues. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City's financial statements. At December 31, 1986, $700,000 of bonds outstanding are considered defeased. A summary of the 1986 activity is presented in Exhibits 8, 9 and 10 of the Supplemental Financial Information Section. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 10 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1986 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) CITY INDEBTEDNESS - Continued The annual requirement to amortize all bonded debt outstanding at December 31, 1986 including interest payments of $337,446 are as follows: General Special Year Ending Obligation Assessment Proprietary December 31, Bonds Bonds Fund Types Total 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 $ 389,300 $ 313,934 $ 196,212 $ 899,446 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 $408,791. 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 1986 and 1985 is computed as follows: December 31, 1986 1985 Assessed value (after fiscal disparities) $50,952,511 $47,918,929 Debt limit (7-1/3% of assessed value) $ 3,736,517 $ 3,593,920 Amount of debt applicable to debt limit: Total bonded debt $ 562,000 $ 636,000 Less: Special assessment bonds and proprietary bonds 372,000 441,000 Less: Cash and investments in debt service funds 4,842 5,866 Total debt applicable to debt limit $ 185,158 $ 189,134 Legal debt margin $ 3,551,359 $ 3,404,786 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, 1986 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 1986 1985 Vacation $ 1,881 $ 1,881 $ 1,717 Severance 16,174 16,174 13,570 Total $ 18,055 $ -0- $ 18,055 $ 15,287 The City also has an unrecorded contingent liability for unused employee sick leave of $61,538 and $51,125 at December 31, 1986 and 1985 respectively. RETIREMENT PLANS The City participates in the Public Employees Retirement Fund and the Police and Fire Fund Pension Plans as administered by the Employees Retirement Association (PERA) under Minnesota Statutes Chapter 353 and 356, which is a cost sharing multiple- employer Public Employee Retirement System (PERS). This plan covers substantially all employees except those qualifying as temporary or seasonal employees. The City's current year covered payroll and total current year payroll for all employees is $293,602 and $320,229, respectively. A summary of plan eligibility requirements is available at PERA. Such retire- ment terms are governed by State Statute. 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 12 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1986 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) RETIREMENT PLANS - Continued Retirees have a variety of annuity options available for payment of benefits. The amounts of annuity (retirement benefits) are based on the following for- mulas: 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. The City made employer contributions of $26,833 (10.05 percent of current year covered payroll) and employees contributed $19,265 (9.20 percent of current year covered payroll). CITY OF OAK PARK HEIGHTS, MINNESOTA Page 13 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1986 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) RETIREMENT PLANS - 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 $848,142,000 in the Public Employees Retirement Fund and $41,917,000 in the Public Employees Police and Fire Fund as of June 30, 1986, 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, 1986 $ 2,076,844,000 $ 405,825,000 Aggregate accrued liabilities including APV of plan benefits 1,228,702,000 363,908,000 Unfunded actuarial accrued liability $ 848,142,000 $ 41,917,000 PERA does not make separate measurements for individual employers. The City of Oak Park Heights made employer contributions totaling $28,161 which represents .00031% of total contributions of all employers participating in the system ($88,775,000) for the year ended June 30, 1986. The City's contributions were made by the required due dates. Information on investment activity and a listing of specific investments of the PERA is available at the Minnesota State Board of Investment. Ten -year historical trend information is available in the published comprenhen- sive annual financial report of the Public Employees Retirement Association. The City made employer contributions of $8,643 to the Federal Social Security Retirement Plan. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 14 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1986 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) RESTRICTIONS OF FUND EQUITY Major fund equity designations at December 31, 1986 and 1985 are as follows: December 31, 1986 1985 Special Revenue Funds: Designated for ensuing years expenditures $ 35,671 $ 33,029 Debt Service Funds: Reserved for debt service 5,163 4,141 Capital Project Funds: Designated for capital improvements 178,574 86,016 Special Assessment Funds: Reserved for debt service 7,621 63,935 Designated for construction /debt service 873,913 737,396 Totals $ 1,100,942 $ 924,517 DEFICIT FUND BALANCES The following funds had deficits at December 31, 1986: ' Storm Sewer Drainage Improvement Fund $ 2,080 ° G.O. Storm Sewer Improvement Bonds of 1971 7,025 • Improvement Bonds of 1982 17,106 The fund deficits of the G.O. Storm Sewer Improvement Bonds of 1971 and the Improvement Bonds of 1982 will be eliminated by future tax levies. The fund deficit of the Storm Sewer Drainage Improvement Fund will be eliminated by a transfer from the General Fund. Note 3 - COMBINED FINANCIAL STATEMENTS The 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 introduc- tion 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 combined financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 15 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1986 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 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 16 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 1987 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 16 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1986 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 22,500 125.00 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, 1986 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, 1986 and 1985 were as follows: December 31, 1986 1985 Current value credits $ 546 $ 585 Debt service credits 146,427 160,687 Deferred charges 5,931 7,546 Total $ 152,904 $ 168,818 Note 8 - SEGMENT INFORMATION The City maintains one Enterprise Fund which provides water and sewer services. Segment information for the year ended December 31, 1986 is as follows: Water Sewer Operating revenue $ 89,213 $ 133,489 Operating expenses before depreciation 54,809 106,716 Depreciation 28,568 22,783 Operating income 5,836 3,990 CITY OF OAK PARK HEIGHTS, MINNESOTA Page 18 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1986 Note 9 - CONTINGENCIES The City attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs. Note 10 - INTERFUND RECEIVABLES /PAYABLES The City had interfund receivables /payables totaling $9,970. These interfund receivables / payables are planned to be eliminated in 1987. All amounts con- sist of year -end closing adjustments to the accounting records of the City. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 6 GENERAL FUND BALA14CE SHEET December 31, 1986 December 31, 1986 1985 Assets (Memorandum Only) Cash and investments $ 740,283 $ 706,295 Accounts receivable 10 10 Due from other governmental units 2,672 1,680 Due from other funds 77 44 Accounts receivable - certified 5,598 5,598 Taxes receivable: Delinquent 23,262 13,305 Allowances and deferments (23,262) (13,305) Due from County 7,518 5,482 Total assets $ 756,158 $ 719,109 Liabilities and Fund Balance Liabilities: Accounts payable $ 53,941 $ 48,968 Salaries payable 3,478 2,502 Due to other governmental units 1,854 9,000 Due to other funds 4,365 1,774 Total liabilities 63,638 62,244 Fund balance: Unreserved: Undesignated 692,520 656,865 Total fund balance 692,520 656,865 Total liabilities and fund balance $ 756,158 $ 719,109 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, 1986 1986 Over (Under) 1985 Budget Actual Budget Actual (Memorandum Only) Revenue: General property taxes: Current and delinquent $579,557 $559,676 Other (63) Total general property taxes $589,207 579,557 $ (9,650) 559,613 Intergovernmental: State: Homestead credit 51,793 51,793 45,775 Local government aid 99,650 99,656 6 99,652 Police aid 12,000 16,892 4,892 11,669 Surcharge rebate 899 Total state 163,443 168,341 4,898 157,995 County: Gravel tax allocation 307 307 452 Total intergovernmental 163,443 168,648 5,205 158,447 Licenses and permits 15,225 22,716 7,491 15,569 Charges for services: Current 2,000 5,031 3,031 3,068 Administrative - Enterprise Fund 30,000 30,000 30,000 Total charges for services 32,000 35,031 3,031 33,068 Fines and forfeits 18,000 28,474 10,474 27,630 Interest on investments 35,000 38,486 3,486 39,832 Refunds and reimbursements 1,500 466 (1,034) 2,623 Sale of property 1,880 1,880 1,525 Donations 500 675 175 700 Total revenue 854,875 875,933 21,058 839,007 Expenditures: General government: Mayor and council: Current: Personal services 17,800 26,062 8,262 22,915 Contractual services 27,150 55,372 28,222 41,257 Total mayor and council $ 44,950 $ 81,434 $ 36,484 $ 64,172 The accompanying notes are an integral part of these financial statements, CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 7 Page 2 of 4 GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1986 1986 Over (Under) 1985 Budget Actual Budget Actual Expenditures: (continued) (Memorandum General government: (continued) Only) Elections: Current: Personal services $ 1,000 $ 946 $ (54) Materials and supplies 200 270 70 Total elections 1,200 1,216 16 $ -0- City clerk: Current: Personal services 69,850 68,736 (1,114) 62,484 Materials and supplies 1,600 1,794 194 1,685 Contractual services 3,900 4,411 511 3,170 Total current 75,350 74,941 (409) 67,339 Capital outlay 1,500 769 (731) 550 Total city clerk 76,850 75,710 (1,140) 67,889 Planning and zoning: Current: Contractual services 2,000 4,726 2,726 1,030 City hall: Current: Materials and supplies 2,400 3,065 665 2,482 Contractual services 11,825 7,481 (4,344) 10,175 Total current 14,225 10,546 (3,679) 12,657 Capital outlay 400 541 141 Total city hall 14,625 11,087 (3,538) 12,657 Assessor: Current: Personal services 5,710 6,205 495 6,404 Capital outlay 838 Total assessor 5,710 6,205 495 7,242 Engineering: Current: Contractual services 3,000 1,044 (1,956) 555 General management: Current: Personal services 12,000 12,027 27 16 Materials and supplies 450 1,893 1,443 350 Contractual services 4,850 7,867 3,017 4,086 Total general management 17,300 21,787 4,487 21,094 Total general government $165,635 $203,209 $ 37,574 $174,639 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, 1986 1986 Over (Under) 1985 Budget Actual Budget Actual Expenditures: (continued) (Memorandum Public safety: Only) Police department: Current: Personal services $220,000 $231,590 $ 11,590 $203,606 Materials and supplies 15,150 11,763 (3,387) 14,404 Contractual services 30,800 31,702 902 30,933 Total current 265,950 275,055 9 248,943 Capital outlay 575 1,892 1,317 833 Total police department 266,525 276,947 10,422 249,776 Fire protection: Current: Contractual services 11,000 10,823 (177) 8,374 Capital outlay 7,500 7,499 (1) Total fire protection 18,500 18,322 (178) 8,374 Animal control: Current: Materials and supplies 175 81 (94) 87 Contractual services 3,300 465 (2,835) 675 Total animal control 3,475 546 (2,929) 762 Total public safety 288,500 295,815 7,315 258,912 Streets and highways: Streets and alleys: Current: Materials and supplies 1,200 488 (712) 423 Contractual services 10,000 7,336 (2,664) 7,740 Total current 11,200 7,824 (3,376) 8,163 Capital outlay 225 Total streets and alleys 11,200 7,824 (3,376) 8,388 Snow and ice removal: Current: Contractual services 25,000 14,886 (10,114) 32,295 Street lighting: s Current: Contractual services 32,400 30,480 (1,920) 29,457 Arboreous: Current: Personal Service 500 292 (208) 394 Materials and supplies 50 42 (8) 6 Contractual services 100 34 (66) 37 Total arboreous 650 368 (282) 437 Total streets and highways $ 69,250 $ 53,558 $(15,692) $ 70,577 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, 1986 1986 Over (Under) 1985 Budget Actual Budget Actual Expenditures: (continued) (Memorandum Sanitation: Only) Refuse collection and disposal: Current: Contractual services $ 96,000 $ 87,038 $ (8,962) $ 66,859 Tree removal and planting: Current: Contractual services 8,000 10,228 2,228 8,310 Total sanitation 104,000 97,266 (6,734) 75,169 Recreation: Parks, playgrounds and rinks: Current: Personal services 82,900 84,972 2,072 75 Materials and supplies 3,750 2,028 (1,722) 3,195 Contractual services 11,550 7,351 (4,199) 6,308 Total current 98,200 94,351 (3,849) 85,002 Capital outlay 400 200 (200) 1,169 Total recreation 98,600 94,551 (4,049) 86,171 Contingency: Current: Personal services 31,425 (31,425) -0- Total expenditures 757,410 744,399 (13,011) 665,468 Revenue over expenditures 97,465 131,534 34,069 173,539 Other increases (decreases): Transfer from Revenue Sharing Fund 7,500 7,500 66,500 Transfer to Capital Project Fund (104,500) (104,500) (162,500) Transfer to Special Assessment Fund (413) (413) Fund escrow account (286) Total other increases (decreases) (97,000) (97,413) (413) (96,286) Net increase in fund balance $ 465 34,121 $ 33,656 77 Fund balance - January 1 656,865 579,612 Residual equity transfer 1,534 -0- Fund balance - December 31 $692,520 $656,865 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, 1986 December 31, 1986 1985 Assets (Memorandum Only) Cash and investments $ 35,989 $ 23,531 Due from other governmental units 9,498 Total assets $ 35,989 $ 33,029 Liabilities and Fund Balance Liabilities: Accounts payable $ 318 Total liabilities 318 $ -0- Fund balance: Unreserved: Designated for ensuing years budget 35,671 33,029 Total fund balance 35,671 33,029 Total liabilities and fund balance $ 35,989 $ 33,029 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, 1986 1986 Over (Under) 1985 Budget Actual Budget Actual Revenue: (Memorandum Intergovernmental: Only) Federal grants $ 38,000 $ 23,857 $(14,143) $ 38,207 Interest on investments 2,243 2,243 4,165 Donations and contributions 11,490 11,49 Total revenue 38,000 37,590 (410) 42,372 Expenditures: Current expense 4,500 4,743 243 3,244 Capital outlay 40,000 22,705-' 10,697 Total expenditures 44,500 27,448 (17,052) 13,941 Revenue over (under) expenditures (6,500) 10,142 16,642 28,431 Other (decreases): Transfer to General Fund (7,500) (7,500) (66,500) Net increase (decrease) in fund balance $(14,000) 2,642 $ 16,642 (38,069) Fund balance - January 1 33,029 71,098 Fund balance - December 31 $ 35,671 $ 33,029 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, 1986 December 31, 1986 1985 Assets Cash and investments $ 4,842 $ 5,866 Taxes receivable: Delinquent 915 510 Allowances and deferments (915) (510) Due from County 299 230 Due from other funds 22 Total assets $ 5,163 $ 6,096 Liabilities and Fund Balance Liabilities Due to other funds $ 1,955 Total liabilities $ -0- 1,955 Fund balance: Reserved for debt service 5,163 4,141 Total liabilities and fund balance $ 5,163 $ 6,096 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, 1986 December 31, 1986 1985 Revenue: Storm sewer ad valorem taxes: Current $ 23,147 $ 24,161 Intergovernmental: State: Homestead credit 2,070 1,989 Interest on investments 333 413 Total revenue 25,550 26,563 Expenditures: Debt service: Principal 5,000 5,000 Interest 19,403 19,828 Paying agent fees 125 50 Total expenditures 24,528 24,878 Revenue over (under) expenditures 1,022 1,685 Fund balance - January 1 4,141 2,456 Fund balance - December 31 $ 5,163 $ 4,141 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, 1986 Storm Sewer Totals Capital Drainage EDP December 31, Improvements Improvement System 1986 1985 Assets (Memorandum Only) Cash (overdraft) and investments $166,638 $ (5,220) $ 11,936 $173,354 $ 95,354 Due from other funds 2,897 2,897 1,889 Taxes receivable: Delinquent 674 674 279 Allowances and deferments (674) (674) (279) Due from County 243 243 174 Total assets $166,638 $ (2,080) $ 11,936 $176,494 $ 97,417 Liabilities And Fund Balance Liabilities: Accounts payable $ 137 interfund loan payable 28,800 Due to other funds 2,880 Total liabilities $ -0- $ -0- $ -0- $ -0- 31,817 Fund balance (deficit): Unreserved: Designated for capital improvements 166,638 11,936 178,574 86,016 Undesignated (2,080) (2,080) (20,416) Total fund balance (deficit) 166,638 (2,080) 11,936 176,494 65,600 Total liabilities and fund balance $166,638 $ (2,080) $ 11,936 $176,494 $ 97,417 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, 1986 Storm Sewer Totals Capital Drainage Brekke Park EDP December 31, Improvements Improvement Improvement System 1986 1985 Revenue: (Memorandum General property taxes: Only) Current and delinquent $ 19,506 $ 19,506 $ 19,719 Other 5 Total general property taxes 19,506 19,506 19,724 Intergovernmental: State: Homestead credit 1,749 1,749 1,652 Interest on investments $ 7,187 961 $ 113 $ 1,396 9,657 5,828 Total revenue 7,187 22,216 113 1,396 30,912 27,204 Expenditures: Interfund interest 2,880 2,880 4,533 Construction costs 800 1,000 900 2,700 42,110 Capital outlay 17,404 17,404 23,159 Total expenditures 800 3,880 900 17,404 22,984 69,802 Revenue over (under) expenditures 6,387 18,336 (787) (16,008) 7,928 (42,598) Other increases (decreases): Transfer from General Fund 104,500 -0- -0- -0- 104,500 162,500 Net increase (decrease) in fund balance 110,887 18,336 (787) (16,008) 112,428 119,902 Fund balance (deficit) - January 1 55,751 (20,416) 2,321 27,944 65,600 (54,302) Residual equity transfer -0- -0- (1,534) -0- (1,534) -0- Fund balance (deficit) - December 31 $ 166,638 $ (2,080) $ -0- $ 11,936 $176,494 $ 65,600 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, 1986 Debt Service G.O. Storm Sewer $165,000 Improvement Closed Improvement Bonds Bond Bonds Of 1971 Fund Of 1982 Assets Cash (overdraft) and investments $ 41,262 $702,153 $ 51,453 Due from other funds 315 161 Due from developers Accounts receivable 4,935 Interfund loan receivable Taxes receivable: Delinquent 684 451 730 Allowances and deferments (684) (451) (730) Due from County 248 40 167 Special assessments: Delinquent 4,480 2,046 Deferred 1,150 76,360 36,008 Special deferred 14,800 Due from County 143 Total assets $ 42,975 $788,272 $ 104,474 Liabilities And Fund Balance Liabilities: Accounts payable Due to other funds $ 3,652 $ 1,580 Refund payable Bonds payable $ 50,000 120,000 Total liabilities 50,000 3,652 121,580 Fund balance: Reserved for: Debt service Unreserved: Designated for: Construction /debt service 784,620 Undesignated (7,025) (17,106) Total fund balance (7,025) 784,620 (17,106) Total liabilities and fund balance $ 42,975 $788,272 $ 104,474 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 1986 1985 (Memorandum Only) $ 39,014 $ 833,882 $ (2,494) $ 50,023 $ 47,529 $ 881,411 $ 755,612 3,155 3,631 843 843 4,474 15,096 2,387 2,387 2,387 4,935 4,935 6,291 28,800 1,865 1,865 1,668 (1,865) (1,865) (1,668) 455 455 685 3,997 10,523 359 359 10,882 12,020 23,455 136,973 37,927 37,927 174,900 209,459 14,800 14,800 14,800 143 153 153 296 4,247 $ 69,621 $1,005,342 $ (107) $ 89,305 $ 89,198 $1,094,540 $1,047,010 $ 107 $ 5,232 $ 5,232 10,446 $ 12 $ 12 12 12 $ 62,000 232,000 232,000 286,000 62,000 237,232 $ -0- 12 12 237,244 296,565 7,621 7,621 7,621 63,935 784,620 89,293 89,293 873,913 687,030 (24,131) (107) (107) (24,238) (520) 7,621 768,110 (107) 89,293 89,186 857,296 750,445 $ 69,621 $1,005,342 $ (107) $ 89,305 $ 89,198 $1,094,540 $1,047,010 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, 1986 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 Revenue: General property taxes: Current and delinquent $ 19,821 $ 59 $ 177 $ 10,997 Other Total general property taxes 19,821 59 177 10,997 Intergovernmental: State: Homestead credit 1,778 -0- -0- 970 Special assessments: Interest on assessments 132 193 7,071 4,938 Adjustments and other 14 83 557 355 Total special assessments 146 276 7,628 5,293 Interest on investments 1,975 4,515 39,581 3,220 Interest - other 2,880 Connection charges 30,720 Total revenue 23,720 4,850 80,986 20,480 Expenditures: Professional services 1,178 Debt service: Interest 3,115 1,060 14,600 Paying agent fees 125 106 125 Total debt service 3,240 1,166 1,178 14,725 Construction costs Total expenditures 3,240 1,166 1,178 14,725 Revenue over (under) expenditures 20,480 3,684 79,808 5,755 Other increases (decreases): Transfer from Special Assessment Fund Transfer to Special Assessment Fund Transfer from General Fund Transfer from Enterprise Fund Fund escrow account Total other increases (decreases) -0- -0- -0- -0- Net increase (decrease) In fund balance 20,480 3,684 79,808 5,755 Fund balance (deficit) - January 1 (27,505) 55,842 645,286 (22,861) Residual equity transfer -0- (59,526) 59,526 -0- Fund balance (deficit) - December 31 $ (7,025) $ -0- $ 784,620 $ (17,106) CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 15 $80,000 G.O. Construction Totals Bonds Total Debt Interim Completed Total December 31, Of 1983 Service Construction Construction Construction 1986 1985 (Memorandum Only) $ 31,054 $ 31,054 $ 69,967 19 31,054 31,054 69,986 2,748 2,748 5,722 $ 2,903 15,237 $ 3,661 $ 3,661 18,898 29,790 259 1,268 437 437 1,705 3,047 3,162 16,505 4,098 4,098 20,603 32,837 2,130 51,421 3,232 3,232 54,653 52,826 2,880 2,880 4,533 30,720 30,720 18,809 5,292 135,328 $ -0- 7,330 7,330 142,658 184,713 1,178 10,147 10,147 11,325 5,764 24,539 24,539 28,440 356 356 206 5,764 26,073 -0- 10,1 10,147 36,220 28,646 17,124 5,764 26,073 -0- 10,147 10,147 36,220 45,770 (472) 109,255 -0- (2,817) (2,817) 106,438 138,943 46,398 (46,398) 413 413 413 9,434 (724) -0- -0- 413 -0- 413 413 8,710 (472) 109,255 413 (2,817) (2,404) 106,851 147,653 8,093 658,855 (520) 92,110 91,590 750,445 602,792 -0- -0- -0- -0- -0- -0- -0- $ 7,621 $ 768,110 $ (107) $ 89,293 $ 89,186 $ 857,296 $ 750,445 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, 1986 December 31, 1986 1985 Assets (Memorandum Only) Current assets: Cash and investments $ 429,969 $ 378,442 Due from other funds 2,500 Accounts receivable: Customers 54,580 49,003 Certified to County 1,627 2,332 Other 52 Prepaid MWCC 7,737 6,593 Due from other governmental units 2,370 6,626 Total current assets 498,783 443,048 Utility plant in service - at cost: Buildings and structures 504,040 504,040 Machinery and equipment 53,848 60,464 Distribution and collection system 2,062,834 2,062,834 Total 2,620,722 2,627,338 Less: Allowance for depreciation (616,843) (572,108) Net fixed assets 2,003,879 2,055,230 Total assets $2,502,662 $2,498,278 Liabilities And Fund Equity Current Liabilities: Accounts payable $ 2,804 $ 4,241 Due to other governmental units 1,238 14,115 Due to other funds 373 126 Accrued interest 2,906 3,197 Meter deposits 55,489 52,296 Bonds payable 15,000 15,000 Total current liabilities 77,810 88,975 Non- current liabilities: Bonds payable 125,000 140,000 Total liabilities 202,810 228,975 Fund equity: Contributions from property owners - net 1,768,913 1,810,748 Retained earnings: Undesignated 530,939 458,555 Total fund equity 2,299,852 2,269,303 Total liabilities and fund equity $2,502,662 $2,498,278 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 17 ENTERPRISE FUND STA'T'EMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1986 Totals Water Sewer December 31, Operating Operating 1986 1985 (Memorandum Revenue: Only) Customer billings $ 88,157 $ 132,034 $ 220,191 $ 199,880 Penalties 1,056 1,455 2,511 1,937 Total operating revenue 89,213 133,489 222,702 201,817 Expenses: Contractual services 24,022 7,270 31,292 35,388 MWCC charges 83,373 83,373 65,253 Materials and supplies 15,787 1,073 16,860 5,085 Administrative and personnel charge 15,000 15,000 30,000 30,000 Depreciation: On purchased assets 7,498 2,018 9,516 9,638 On contributed assets 21,070 20,765 41,835 41,835 Total operating expenses 83,377 129,499 212,876 187,199 Operating income (loss) $ 5,836 $ 3,990 9,826 14,618 Other income (expenses): Interest on investments 27,987 28,093 Plumbing permits 368 184 Refunds and reimbursements 2,033 2,814 Charges for services 439 293 Bond interest (12,500) (13,660) Paying agent fees (104) (104) Gain on sale of truck 2,500 Total other income 20,723 17,620 Net income 30,549 32,238 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) 41,835 32,401 Net increase in retained earnings 72,384 64,639 Retained earnings - January 1 458,555 393,916 Retained earnings - December 31 $ 530,939 $ 458,555 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, 1986 Totals December 31, 1986 1985 (Memorandum Sources of financial resources: Only) Operations: Net income $ 30,549 $ 32,238 Expenses not requiring outlay of working capital - depreciation 51,351 51,473 Total sources from operations 81,900 83,711 Total sources 81,900 83,711 Uses of financial resources: Bond principal - long -term portion 15,000 15,000 Transfers to other funds 9,433 Total uses 15,000 24,433 Net increase in working capital $ 66,900 $ 59,278 Components of increase in working capital: Cash and investments $ 51,527 $ 84,985 Accounts receivable 5,525 213 Due from other governmental units (4,256) (15,752) Due from other funds 2,500 (819) Accounts receivable - certified (705) 844 Prepaid MWCC 1,144 2,468 Accounts payable 1,437 (1,542) Accrued interest payable 291 291 Due to other governmental units 12,877 (9,266) Due to other funds (247) (126) Meter deposits (3,193) (2,018) Net increase in working capital $ 66,900 $ 59,278 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, 1986 Balance Balance January 1, December 31, 1986 Additions Deletions 1986 Developers' Deposits Fund: Assets Cash (overdraft) $ (899) $ 12,845 $ 11,342 $ 604 Accounts receivable -0- 328 328 Due from developers 1,285 9,701 10,165 821 Due from other funds 152 152 -0- Total assets $ 538 $ 22,874 $ 21,659 $ 1,753 Liabilities Accounts payable $ 496 $ 534 $ 496 $ 534 Due to developers 42 1,694 517 1,219 Total liabilities $ 538 $ 2,228 $ 1,013 $ 1,753 Investment Fund: Assets Cash (overdraft) $(1,970,297) $ 8,759,329 $ 9,069,439 $(2,280,407) Investments 1,952,593 9,049,504 8,741,625 2,260,472 Accrued interest 17,704 19,935 17,704 19,935 Total assets $ -0- $17,828,768 $17,828,768 $ -0- Total Agency: Assets Cash (overdraft) and investments $ (18,603) $17,821,678 $17,822,406 $ (19,331) Accrued interest receivable 17,704 19,935 17,704 19,935 Due from developers 1,285 9,701 10,165 821 Due from County 328 328 Due from other funds 152 152 -0- Total assets $ 538 $17,851,642 $17,850,427 $ 1,753 Liabilities Accounts payable $ 496 $ 534 $ 496 $ 534 Due to developers 42 1,694 517 1,219 Total liabilities $ 538 $ 2,228 $ 1,013 $ 1,753 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, 1986 (UNAUDITED) Balance Balance January 1, December 31, Description 1986 Additions Deletions 1986 Land $ 50,625 $ 50,625 Land improvements 49,921 49,921 Buildings and structures 496,508 496,508 Machinery and equipment 164,261 $ 47,454 $ 11,422 200,293 Furniture and fixtures 18,358 399 18,757 Totals $779,673 $ 47,853 $ 11,422 $816,104 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, 1986 December 31, 1986 1985 Amount Available and to be Provided for the (Memorandum Retirement of Long -Term Debt Only) Bonds: Amount available in Debt Service Funds $ 5,163 $ 4,141 Amount to be provided from future tax levies 184,837 190,859 Compensated absences: Amount to be provided 18,055 15,287 Total available and to be provided $ 208,055 $ 210,287 General Long -Term Debt Payable Bonds payable: Storm Sewer Bonds $ 190,000 $ 195,000 Compensated absences payable 18,055 15,287 Total general long -term debt payable $ 208,055 $ 210,287 The accompanying notes are an integral part of these financial statements. S U P P L E M E N T A R Y F I N A N C I A L I N F O R M A T I O N CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS December 31, 1986 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 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 12/31/86 In 1987 In 1987 $ 205,000 $ 15,000 $ 190,000 $ 5,000 $ 18,978 173,000 123,000 50,000 10,000 2,560 165,000 45,000 120,000 15,000 13,025 80,000 18,000 62,000 9,000 5,013 418,000 186,000 232,000 34,000 20,598 200,000 60,000 140,000 15,000 11,625 $ 823,000 $ 261,000 $ 562,000 $ 54,000 $ 51,201 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 2 SPECIAL ASSESSMENT BONDS SCHEDULE OF DEBT SERVICE PAYMENTS TO MATURITY December 31, 1986 G.O. Storm $165,000 $80,000 Sewer G.O. G.O. Improvement Improvement Improvement Bonds Bonds Bonds Of 1971 Of 1982 Of 1983 Total Bonds payable $ 50,000 $ 120,000 $ 62,000 $ 232,000 Future interest payable 7,120 55,963 18,851 81,934 Totals $ 57,120 $ 175,963 $ 80,851 $ 313,934 Year of maturity: 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 $ 57,120 $ 175,963 $ 80,851 $ 313,934 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 3 REVENUE BONDS AND GENERAL DEBT BONDS DEBT SERVICE PAYMENTS TO MATURITY December 31, 1986 Special Taxing District $205,000 Water And Sewer Storm Sewer Revenue Bond Bond of 1982 Bonds payable $ 140,000 $ 190,000 Future interest payable 56,212 199,300 Total $ 196,212 $ 389,300 Year of maturity: 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 $ 196,212 $ 389,300 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 4 SECURITIES FOR DEPOSITS December 31, 1986 Description Amount Federal GNMA Trust $ 1,952,043 First Mortgage 169,677 U.S. T -Bills 833,692 Municipal Revenue Bond 84,789 Total $ 3,040,201 The above securities have been: Assigned By: Held By: Amount Cosmopolitan State Bank of First National Bank of St. Paul Stillwater $ 596,589 Cosmopolitan State Bank of National City Bank 84,789 Stillwater Washington Federal Savings U.S. League Trust Company of 1,025,150 and Loan Dallas, Texas Washington Federal Savings First National Bank of Stillwater 169,677 and Loan Oak Park Heights State Bank Norwest Bank 237,103 Washington Federal Savings State Street Bank and Trust Co. 926,893 and Loan of Boston, MA /J Total $ 3, 040, 201 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 5 INSURANCE IN FORCE December 31, 1986 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) 600,000 Employers Liability (Each accident) 100,000 Host liquor 500,000 Depositors Forgery 50,000 Faithful performance blanket bond 50,000 Property Scheduled location 1,472,300 Miscellaneous radio equipment 12,850 Miscellaneous garden equipment 43,500 Workmen's compensation Statutory Business Auto Policy: Liability CSL 600,000 Uninsured motorist 600,000 Underinsured motorist 600,000 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: Clerk - treasurer 50,000 Deputy Clerk - treasurer 50,000 Police Professional 1,000,000/1,000,000 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 6 FUTURE SCHEDULED TAX LEVIES December 31, 1986 Special Taxing District Special Assessment Bonds Storm Sewer Year Of Year of Bond Issue Bonds Total Collection 1971 1982 1983 Total Of 1982 All Bonds 1987 $ 5,500 $ 12,000 $ 5,000 $ 22,500 $ 25,177 $ 47,677 1988 1 2, 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 $ 41,500 $ 50,000 $ 5,000 $ 96,500 $ 408,791 $ 505,291 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 7 TAXABLE VALUATIONS, TAX LEVIES AND MILL RATES 1986 1985 Storm Sewer Storm Sewer District_ Total City District Total City Taxable valuations: Real property $36,823,539 $51,341,491 $35,393,500 $49,011,167 Personal property 873,803 875,867 Total 36,823,539 52,215,294 35,393,500 49,887,034 Fiscal disparity adjustment: Distribution 513,440 1,490,130 455,107 1,188,305 Contribution (2,239,473) (2,752,913) (2,590,267) (3,156,410) Total (1,726,033) (1,262,783) (2,135,160) (1,968,105) Total taxable valuation $35,097,506 $50,952,511 $33,258,340 $47,918,929 Tax levies and mill rates: Year of levy 1986 1985 Year of collection 1987 1986 Amount Mill Amount Mill Levied Rates Levied Rates City -wide levies: Revenue $745,000 14.813 $641,000 13.510 Bonded debt 22,500 .449 34,000 .717 Total $767,500 15.262 $675,000 14.227 Storm Sewer District: Storm Sewer Bonds of 1982 $ 25,177 .461 $ 47,273 1.232 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 8 DEBT SERVICE ESCROW AGENT ACCOUNT BALANCE SHEET December 31, 1986 First Trust St. Paul December 31, Assets 1986 Cash $ 1,732 Investments 420,951 Total cash and investments 422,683 Amount to be provided by future interest 277,317 Total assets $ 700,000 Liabilities Liabilities: Bonds payable $ 700,000 Total liabilities $ 700,000 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 9 DEBT SERVICE ESCROW AGENT ACCOUNT STATEMENT OF CHANGES IN FUND BALANCE For The Year Ended December 31, 1986 Amount to be provided - January 1, 1986 $(255,329) Additions: Interest received on investments 15,325 Deductions: Bond interest and paying agent fees 37,313 Amount to be provided - December 31, 1986 $(277,317) CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 10 DEBT SERVICE ESCROW AGENT ACCOUNT BONDS PAYABLE December 31, 1986 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 $ 410,000 $ 290,000 $ 700,000 Future interest payable 118,935 96,021 214,956 Totals $ 528,935 $ 386,021 $ 914,956 Year of maturity; 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 $ 528,935 $ 386,021 $ 914,956 S T A T I S T I C A L S E C T I O N CITY OF OAK PARK HEIGHTS, MINNESOTA Table 1 GENERAL AND SPECIAL REVENUE FUNDS EXPENDITURES BY FUNCTION Years 1978 Through 1986 (UNAUDITED) Streets General Public and Capital Year Total Government Safety Hiqhways Sanitation Recreation Outlay 1978 $ 373,988 $ 97,436 $ 162,453 $ 24,991 $ 37,394 $ 51,714 1979 432,055 139,328 159,801 63,754 31,422 37,750 1980 461,689 117,583 168,443 45,869 58,534 46,127 $ 25,133 1981 533,788 161,276 170,733 43,928 63,586 54,439 39,826 1982 534,910 134,061 189,877 48,442 58,362 74,355 29,813 1983 551,944 131,768 204,955 62,900 63,814 74,714 13,793 1984 606,763 154,095 227,844 60,414 74,652 79,938 9,820 1985 679,409 176,495 258,079 70,352 75,169 85,002 14,312 1986 771,847 206,642 286,424 53,558 97,266 94,351 33,606 CITY OF OAK PARK HEIGHTS, MINNESOTA Table 2 GENERAL AND SPECIAL REVENUE FUNDS REVENUE BY SOURCE Years 1978 Through 1986 (UNAUDITED) Licenses Fines Charges Inter- and and Interest for Year Total Taxes governmental Permits Forfeits Income Services Miscellaneous 1978 $494,106 $211,577 $180,741 $ 60,921 $ 1,418 $ 18,707 $ 10,200 $ 10,542 1979 488,766 219,802 185,939 33,189 1,466 22,633 18,515 7,222 1980 491,557 276,402 171,621 22,058 2,722 8,702 7,864 2,188 1981 608,701 386,515 182,356 16,263 7,576 11,151 329 4,511 1982 669,827 423,843 165,075 12,058 5,560 20,878 39,361 3,052 1983 756,505 482,084 186,939 16,808 7,730 24,798 33,221 4,925 1984 877,106 543,573 192,959 15,967 14,633 49,681 33,318 26,975 1985 881,379 559,613 196,654 15,569 27,630 43,997 33,068 4,848 1986 913,523 579,557 192,505 22,716 28,474 40,729 35,031 14,511 CITY OF OAK PARK HEIGHTS, MINNESOTA Table 3 PROPERTY TAX LEVIES AND COLLECTIONS Years 1978 Through 1986 (UNAUDITED) Percent Total of Collection Delinquent Current Delinquent as a Outstanding Percent of Taxes Total Current Tax Levy Tax Total Tax Percent Delinquent Current Payable Tax Levy Collections Collected Collections Collections Of Levy Taxes Levies 1978 $302,467 $299,304 98.95% $ 1,094 $300,398 99,32% $ 6,915 2.29% 1979 309,300 305,965 98.92 4,216 310,181 100.28 6,032 1.95 1980 384,800 374,902 97.43 6,558 381,460 99.13 5,680 1.48 1981 473,105 448,905 94.88 1,648 450,553 95.23 11,836 2.50 1982 521,081 504,547 96.83 6,325 510,872 98.04 16,175 3.10 1983 605,259 595,034 98.31 10,778 605,812 100.09 15,622 2.58 1984 696,639 680,144 97.63 10,419 690,563 99.13 21,698 3.11 1985 722,719 713,393 98.71 15,262 728,655 100.82 15,762 2.18 1986 722,273 705,913 97.73 5,404 711,317 98.48 26,716 3.70 CITY OF OAK PARK HEIGHTS, MINNESOTA Table 4 SPECIAL ASSESSMENT COLLECTIONS Years 1982 Through 1986 (UNAUDITED) Current Total Collections Collections Current Current As a Percent Of Delinquent As a Percent Of Outstanding Year Assessments Assessments Current Assessments Current Delinquent Payable Due Collected Assessments Due Collected Assessments Due Assessments 1982 $ 90,298 $ 76,415 84.63% $ 2,732 87.65% $ 27,275 1983 59,286 56,847 95.89 21,636 132.38 8,195 1984 93,917 85,506 91.04 2,234 93.42 13,850 1985 69,510 64,533 92.84 6,471 102.15 12,020 1986 45,734 40,547 88.66 6,210 102.23 10,882