HomeMy WebLinkAboutAnnual Financial Report CITY OF OAK PARK HEIGHTS, MINNESOTA
ANNUAL FINANCIAL REPORT
DECEMBER 31, 1987
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 Cash Flows - 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:
Combining Balance Sheet Statement 10
Combining 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 CONTENTS
Enterprise Fund:
Balance Sheet Statement 14
Statement of Revenue, Expenses and Changes in
Retained Earnings Statement 15
Statement of Cash Flows Statement 16
Trust and Agency Funds:
Combining Balance Sheet Statement 17
Combining Statement of Changes in Assets and Liabilities Statement 18
Statement of General Fixed Assets Statement 19
Statement of General Long Term Debt Statement 20
Supplementary Financial Information
Combined Schedule of Indebtedness Exhibit 1
Debt Service Payments to Maturity:
Special Assessment Debt with Governmental Commitment Exhibit 2
Revenue Bonds and 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 1979 through 1987 Table 1
General and Special Revenue Funds - Revenue By Source -
Years 1979 through 1987 Table 2
Property Tax Levies and Collections - Years 1979 through 1987 Table 3
Special Assessment Collections - Years 1982 through 1987 Table 4
CITY OF OAK PARK HEIGHTS, MINNESOTA
ORGANIZATION
December 31, 1987
Term Expires
Mayor:
Frank Sommerfeldt December 31, 1988
Council members:
Richard Seggelke December 31, 1990
Jack Doerr December 31, 1990
Barry Torgerson December 31, 1988
Barbara O'Neal December 31, 1988
Clerk- Treasurer:
LaVonne Wilson Appointed
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To the Honorable Mayor and
Members of the City Council
City of Oak Park Heights
Page 2
Our examination was made for the purpose of forming an opinion on the combined
financial statements taken as a whole and on the combining, individual fund, and
account group financial statements. The accompanying financial information
listed as supplementary 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.
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.
February 26, 1988
f
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, 1987
Governmental Fund Types
Debt Capital
Assets General Service Project
Cash and investments $ 803,783 $ 382,273 $1,257,805
Accrued interest receivable
Accounts receivable 5,610
Due from other funds 31,525 884 1,432
Due from other governmental units 1,838
Due from developers
Prepaid expenses
Taxes receivable:
Delinquent 27,282 2,163 196
Due from county
Special assessments receivable 54,661 98,061
Fixed assets - net
Amount available in Debt Service Fund
Amount to be provided for the
retirement of long -term debt
Total assets $ 870,038 $ 439,981 $1,357,494
Liabilities And Fund Equity
Liabilities:
Cash overdraft
Accounts payable $ 56,663 $ 11,348
Salaries payable 1,852
Contracts payable 105,635
Accrued interest
Due to other governmental units 868
Due to other funds 602 $ 1,827 20
Deposits /refunds payable
Compensated absences payable
Bonds payable
Deferred revenue 27,282 54,800 98,257
Total liabilities 87,267 56,627 215,260
Fund equity:
Investment in fixed assets
Contributions - net
Retained earnings:
Undesignated
Fund balance:
Reserved 383,354
Unreserved:
Designated 751,333 1,142,234
Undesignated 31,438
Total fund equity 782,771 383,354 1,142,234
Total liabilities and fund equity $ 870,038 $ 439,981 $1,357,494
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 1
Fiduciary Account Groups Totals
Proprietary Fund Type General (Memorandum Only)
Fund Type Trust and General Long -Term December 31,
Enterprise Agency Fixed Assets Debt 1987 1986
(unaudited)
$ 557,162 $ 36 $3,001,059 $2,274,166
20,533 20,533 19,935
72,884 317 78,811 67,078
108 33,949 9,970
12,750 14,588 5,042
475 475 3,208
7,115 7,115 7,737
29,641 26,716
8,515
152,722 200,878
1,952,597 $ 916,631 2,869,228 2,819,983
$ 383,354 383,354 139,197
1,024,988 1,024,988 300,858
$ 2,602,616 $ 21,361 $ 916,631 $1,408,342 $7,616,463 $5,883,283
$ 20,533 $ 20,533 $ 27,649
$ 2,268 78 70,357 57,597
1,852 3,478
105,635
2,606 2,606 2,906
340 1,208 3,092
31,500 33,949 9,970
57,237 750 57,987 56,720
$ 30,342 30,342 18,055
125,000 1,378,000 1,503,000 562,000
180,339 227,298
218,951 21,361 $ -0- 1,408,342 2,007,808 968,765
916,631 916,631 816,104
1,727,079 1,727,079 1,768,913
656,586 656,586 530,939
383,354 139,197
1,893,567 969,032
31,438 690,333
2,383,665 -0- 916,631 -0- 5,608,655 4,914,518
$ 2,602,616 $ 21,361 $ 916,631 $1,408,342 $7,616,463 $5,883,283
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 2
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES
For The Year Ended December 31, 1987
Totals
(Memorandum Only)
Special Debt Capital December 31,
General Revenue Service Project 1987 1986
Revenue:
General property taxes $ 681,636 $ 44,029 $ 638 $ 726,303 $ 653,264
Intergovernmental 184,409 $ 641 3,814 188,864 199,072
Licenses and permits 18,882 18,882 22,716
Fines and forfeits 31,809 31,809 28,474
Interest on investments 37,686 972 15,189 74,814 128,661 105,372
Interest - other 2,880
Charges for current services 35,493 35,493 35,031
Special assessments 164,274 31,448 195,722 56,300
Connection charges 8,087 8,087 30,720
Other 5,840 5,840 14,511
Total revenue 995,755 1,613 227,306 114,987 1,339,661 1,148,340
Expenditures:
Current:
General government 205,856 4,753 1,573 212,182 217,967
Public safety 327,380 327,380 286,424
Streets and highways 55,555 55,555 53,558
Sanitation 124,719 124,719 97,266
Recreation 92,831 92,831 94,351
Capital outlay 9,298 30,764 65,056 105,118 51,010
Debt service:
Principal 39,000 39,000 59,000
Interest 64,113 64,113 46,822
Paying agent fees 597 597 481
Construction costs 791,556 791,556 2,700
Total expenditures 815,639 35,517 103,710 858,185 1,813,051 909,579
Revenue over (under) expenditures 180,116 (33,904) 123,596 (743,198) (473,390) 238,761
Other increases (decreases):
Operating transfers from
other funds 100,000 100,000 112,413
Operating transfers to other funds (100,000) (100,000) (112,413)
Bond proceeds 120,561 862 983,187
Total other increases
(decreases) (100,000) -0- 120,561 962,626 983,187 -0-
Net increase (decrease)
in fund balance 80,116 (33,904) 244,157 219,428 509,797 238,761
Fund balance - January 1 692,520 35,671 139,197 931,174 1,798,562 1,559,801
Residual equity transfer:
In 11,940 1,805 13,745 61,060
Out (1,805) (1,767) (10,173) (13,745) (61,060)
Fund balance - December 31 $ 782,771 $ -0- $ 383,354 $1,142,234 $2,308,359 $1,798,562
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, 1987
General Fund
Over
(Under)
Budget Actual Budget
Revenue:
General property taxes $ 685,364 $ 681,636 $ (3,728)
Intergovernmental 176,286 184,409 8,123
Licenses and permits 17,080 18,882 1,802
Fines and forfeits 25,000 31,809 6,809
Interest on investments 35,000 37,686 2,686
Charges for current services 34,000 35,493 1,493
Other 700 5,840 5,140
Total revenue 973,430 995,755 22,325
Expenditures:
Current:
General government 206,520 205,856 (664)
Public safety 351,970 327,380 (24,590)
Streets and highways 72,175 55,555 (16,620)
Sanitation 115,000 124,719 9,719
Recreation 114,100 92,831 (21,269)
Contingency 3,189 (3,189)
Capital outlay 9,811 9,298 (513)
Total expenditures 872,765 815,639 (57,126)
Revenue over (under) expenditures 100,665 180,116 79,451
Other increases (decreases):
Operating transfer from other funds
Operating transfer to other funds (100,000) (100,000)
Total other increases (decreases) (100,000) (100,000) -0-
Net increase (decrease) in fund balance $ 665 80,116 $ 79,451
Fund balance - January 1 692,520
Residual equity transfer:
In 11,940
Out (1,805)
Fund balance - December 31 $ 782,771
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 3
Totals (Memorandum Only)
Special Revenue 1987
Over Over
(Under) (Under) 1986
Budget Actual Budget Budget Actual Budget Actual
$ 685,364 $ 681,636 $ (3,728) $ 579,557
$ 641 $ 641 176,286 185,050 8 192,505
17,080 18,882 1,802 22,716
25,000 31,809 6,809 28,474
$ 500 972 472 35,500 38,658 3,158 40,729
34,000 35,493 1,493 35,031
700 5,840 5,140 14,511
500 1,613 1,113 973,930 997,368 23,438 913,523
4,500 4,753 253 211,020 210,609 (411) 206,642
351,970 327,380 (24,590) 286,424
72,175 55,555 (16,620) 53,558
115,000 124,719 9,719 97,266
114,100 92,831 (21,269) 94,351
3,189 (3,189)
14,000 30,764 16,764 23,811 40,062 16,251 33,606
18,500 35,517 17,017 891,265 851,156 (40,109) 771,847
(18,000) (33,904) (15,904) 82,665 146,212 63,547 141,676
7,500
(100,000) (100,000) (112,413)
-0- -0- -0- (100,000) (100,000) -0- (104,913)
$ (18,000) (33,904) $ (15,904) $ (17,335) 46,212 $ 63,547 36,763
35,671 728,191 689,894
11,940 1,534
(1,767) (3,572)
$ -0- $ 782,771 $ 728,191
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, 1987
Totals
December 31,
1987 1986
Revenue:
Customer billings $ 274,807 $ 220,191
Penalties 3,293 2,511
Total operating revenue 278,100 222,702
Expenses:
Contractual services 43,376 31,292
MWCC charges 82,469 83,373
Materials and supplies 12,827 16,860
Administrative charges 31,500 30,000
Depreciation 51,282 51,351
Total operating expenses 221,454 212,876
Net income 56,646 9,826
Other income (expense):
Interest on investments 32,059 27,987
Plumbing permits 384 368
Refunds and reimbursements 4,849 2,033
Charges for services 1,303 439
Gain on sale of truck 2,500
Interest (11,325) (12,500)
Paying agent fees (104) (104)
Total other income 27,166 20,723
Net income 83,812 30,549
Other increases (decreases):
Credit arising from transfer of depreciation
to contributions from property owners 41,835 41,835
Net increase in retained earnings 125,647 72,384
Retained earnings - January 1 530,939 458,555
Retained earnings - December 31 $ 656,586 $ 530,939
The accompanying notes are an integral part of these financial statements,
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 5
COMBINED STATEMENT OF CASH FLOWS -
PROPRIETARY FUND TYPE
For The Year Ended December 31, 1987
Totals
December 31,
1987 1986
Cash Flows from Operating Activities:
Net income $ 83,812 $ 30,549
Non -cash expenses (revenues) included in net income:
Depreciation 51,282 51,351
Gain on sale of equipment (2,500)
Increase in receivables (24,042) (4,208)
Increase /(decrease) in payables 31,141 (11,165)
Net cash provided by operating activities 142,193 64,027
Cash Flows from Investing Activities:
Sale of equipment 2,500
Cash Flows from Financing Activities:
Debt reduction - long -term (15,000) (15,000)
Net cash used by financing activities (15,000) (12,500)
Net increase in cash $127,193 $ 51,527
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Page 1 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
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
In accordance with the Codification of Governmental Accounting and Financial
Reporting Standards (GASB) Section 2100, "Defining the Reporting Entity ", for
financial reporting purposes the City's financial statements 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.
As a result of applying the criteria of the Codification of Governmental
Accounting Standards Board Section 2100, certain organizations have been
included or excluded from the City's financial statements:
Entity Reason for Inclusion /Exclusion
Included: None
Excluded: Housing and Redevelopment There has been no financial activ-
Authority ity of the HRA from its inception.
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 expendable trusts, or for major capital projects) that are legally
restricted to expenditure for specified purposes.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Page 2 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
GOVERNMENTAL FUNDS (Continued)
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 and Trust Funds).
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.
MEASUREMENT FOCUS
The accounting and reporting treatment applied to a fund is determined by its
measurement focus. All Governmental Funds are accounted for on a spending or
"financial flow" measurement focus. This means that only current assets and
current liabilities are generally included on their balance sheets.
Governmental fund operating statements present increases (revenues and other
financing sources) and decreases (expenditures and other financing uses) in net
current assets.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Page 3 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
Note 1 - SUMMARY OF SIGNFICANT ACCOUNTING POLICIES (Continued)
MEASUREMENT FOCUS (Continued)
All Proprietary Funds are accounted for on a cost of services or "capital main-
tenance" measurement focus. This means that all assets and all liabilities
(whether current or noncurrent) associated with this activity are included on
their balance sheets. Their reported fund equity (net total assets) is segre-
gated into contributed capital and retained earnings components. Proprietary
fund type operating statements present increases (revenues) and decreases
(expenses) in net total assets.
BASIS OF ACCOUNTING
The modified accrual basis of accounting is followed by the City for its
governmental funds (General, Special Revenue, Debt Service, and Capital
Project) 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.
Major revenue sources susceptible to accrual include property taxes, special
assessments, intergovernmental revenues, charges for services and interest on
investments.
Major revenue sources not susceptible to accrual include 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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Page 4 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
BUDGETARY DATA (Continued)
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 $ 83,300 $ 92,262 $ 8,962
City Hall:
Current 15,400 9,214 (6,186)
Streets and Alleys:
Current 10,700 14,944 4,244
Snow and Ice Removal:
Current 25,000 9,711 (15,289)
Tree Removal and Planting:
Current 3,000 13,678 10,678
Parks, Playgrounds and Rinks:
Current 114,100 92,831 (21,269)
The $8,962 excess of expenditures over budget for Mayor and Council is pri-
marily the result of increased legal fees.
The $6,186 favorable budget variance for City Hall is primarily the result of
lower than anticipated insurance and consulting services.
The $4,244 excess of expenditures over budget for Streets and Alleys is pri-
marily the result of greater street repairs than anticipated.
The $15,289 favorable budget variance for Snow and Ice Removal is primarily the
result of lower snowfall than had been anticipated.
The $10,678 excess of expenditures over budget for Tree Removal and Planting is
the result of additional projects being approved that were not included in the
budget.
The $21,269 favorable budget variance for Parks, Playgrounds and Rinks was the
result of not hiring an additional part -time employee and lower than antici-
pated insurance and utility costs.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Page 5 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS
BUDGETARY DATA (Continued)
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.
ASSETS
CASH AND INVESTMENTS
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
110% 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, 1987 the carrying amounts of the City's deposits was $2,980,526
all of which was covered by federal depository insurance or collateralized by
securities held in the City's name.
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Page 6 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS
Investments (Continued)
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 1987, 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 may also receive other Federal 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
Property tax levies are set by the Council in October each year and are cer-
tified to Washington County for collection in the following year. The County
spreads all levies over assessable property. Such taxes become a lien on
January 1 and are recorded as receivable by the City at that date. 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 approxima-
tely 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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Page 7 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued)
PROPERTY TAX REVENUE RECOGNITION (Continued)
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.
Revenues are accrued in the year collectible, net of delinquencies. Taxes
which remain unpaid at December 31 are classified as delinquent taxes
receivable and are fully offset by deferred revenue because they are not
available to finance current expenditures. No allowance for uncollectible
taxes has been provided because such amounts are not expected to be material.
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 1987 and 1986 totaled $21,438 and $16,801
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. Special assessment principal and
interest is recognized as revenue in the year of collection.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Page 8 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
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
1/1/87 Additions Deletions 12/31/87
Land $ 100,546 $ 100,546
Buildings and structures 496,508 $ 70,594 567,102
Machinery and equipment 200,293 31,637 $ 6,631 225,299
Furniture and fixtures 18,757 4,927 23,684
Totals $ 816,104 $ 107,158 $ 6,631 $ 916,631
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 9 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
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 1987 1986
Purchased assets:
Water 5 -50 years $ 7,429 $ 7,498
Sewer 5 -50 years 2,018 2,018
Contributed assets:
Water 50 years 21,070 21,070
Sewer 50 years 20,765 20,765
Totals $ 51,282 $ 51,351
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, 1987 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 (668,125)
Net fixed assets $1,952,597
CITY OF OAK PARK HEIGHTS, MINNESOTA
Page 10 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
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, 1987.
Special
Assessment
Debt With
General Revenue Governmental
Obligation Bonds Commitment Total
Bonds payable -
January 1, 1987 $ 190,000 $ 140,000 $ 232,000 $ 562,000
Bonds issued in 1987 995,000 995,000
Bonds retired in 1987 5,000 15,000 34,000 54,000
Bonds payable -
December 31, 1987 $ 185,000 $ 125,000 $1,193,000 $1,503,000
All bond issues outstanding at December 31, 1987 are backed by the full faith
and credit of the City, including special assessment bond issues. The
outstanding balance at December 31, 1987, principal and interest payments due
in 1987, 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, 1987, $645,000 of bonds outstanding are considered defeased. A
summary of the 1987 activity is presented in Exhibits 8, 9 and 10 of the
Supplemental Financial Information Section.
The annual requirements to amortize all bonded debt outstanding at December 31,
1987 including interest payments of $523,486 are as follows:
General Special Assessment
Year Ending Obligation Debt With Proprietary
December 31, Bonds Governmental Commitment Fund Types Total
1988 $ 23,553 $ 110,587 $ 25,425 $ 159,565
1989 28,102 307,673 24,225 360,000
1990 27,203 293,213 22,987 343,403
1991 26,277 283,742 26,750 336,769
1992 25,353 258,661 25,100 309,114
1993 -2003 234,835 237,700 45,100 517,635
Total $ 365,323 $1,491,576 $ 169,587 $2,026,486
CITY OF OAK PARK HEIGHTS, MINNESOTA
Page 11 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued)
CITY INDEBTEDNESS (Continued)
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 $438,614.
City indebtedness at December 31, 1987 is composed of the following:
final Net
Payment Interest Authorized Outstanding
Dated Due Rate and Issued at 12/31/87
Bonded Indebtedness:
General Debt:
Storm Sewer Bonds of 1982 12/01/82 12/01/03 10.12% $ 205,000 5 185,000
Special Assessment Bonds with
Governmental Commitment:
General Obligation Storm Sewer
Improvement Bonds of 1971 5/01/71 5/01/91 4.60 173,000 40,000
General Obligation Improvement
Bonds of 1982 8/01/82 8/01/93 10.75 165,000 105,000
General Obligation Improvement
Bonds of 1983 12/15/83 2/01/93 8.60 80,000 53,000
General Obligation Improvement
Bonds of 1987 7/01/87 12/01/93 5.97 995,000 995,000
Total special assessment bonds
with governmental commitment 1,413,000 1,193,000
Revenue Bonds:
General Obligation Water and
Sewer Bonds of 1980 10/01/80 10/01/94 7.50 200,000 125,000
Total indebtedness $1,818,000 $1,503,000
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Page 12 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued)
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 1987 and 1986 is computed as follows:
December 31,
1987 1986
Assessed value (after fiscal disparities) $52,969,221 $50,952,511
Debt limit (7 -1/3% of assessed value) $ 3,884,409 $ 3,736,517
Amount of debt applicable to debt limit:
Total bonded debt $ 1,503,000 $ 562,000
Less: Special assessment bonds and
proprietary bonds 1,193,000 372,000
Less: Cash and investments in
debt service funds 6,499 4,842
Total debt applicable to debt limit $ 303,501 $ 185,158
Legal debt margin $ 3,580,908 $ 3,551,359
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).
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 1987 1986
Vacation $ 2,049 $ 2,049 $ 1,881
Severance 28,293 28,293 16,174
Total $ 30,342 $ -0- $ 30,342 $ 18,055
The City also has an unrecorded contingent liability for unused employee sick
leave of $68,570 and $61,538 at December 31, 1987 and 1986 respectively.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Page 13 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued)
RETIREMENT PLANS
The City participates in the Public Employees Retirement Fund and the Police
and Fire Fund Pension Plans as administered by the Public 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 $331,352 and $355,455, 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.
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:
CITY OF OAK PARK HEIGHTS, MINNESOTA
Page 14 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued)
RETIREMENT PLANS (Continued)
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 $29,914 (9% of current year covered
payroll). Employee contributions of $21,528 (6.50% of current year covered
payroll) were made.
The "pension benefit obligation" is a standardized disclosure measure of the
present value of pension benefits, adjusted for the effects of projected salary
increases and step -rate benefits, estimated to be payable in the future as a
result of employee service to date. The measure, which is the actuarial pre-
sent value of credited projected benefits, is intended to help users assess the
PERA's funding status on a going - concern basis, assess progress made in accumu-
lating sufficient assets to pay benefits when due, and make comparisons among
Public Employees Retirement Systems and employers. The PERA does not make
separate measurements of assets and pension benefit obligation for individual
employers.
The pension benefit obligations of the PERA as of June 30, 1987, were as
follows:
Public Employees Public Employees
Retirement Fund Police and Fire Fund
Total pension benefit obligation $ 2,839,047,000 $ 437,229,000
Net assets available for benefits,
at market 2,608,691,000 549,534,000
Unfunded (assets in excess of)
pension benefit obligation $ 230,356,000 $(112,305,000)
The actuarial calculations of annual contributions include amounts that would be
required to achieve full (100 %) funding by the year 2009.
The measurement of the pension benefit obligation is based on an actuarial
valuation as of June 30, 1987. Net assets available to past pension benefits
were valued as of June 30, 1987.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Page 15 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued)
RETIREMENT PLANS (Continued)
PERA does not make separate measurements for individual employers. The City of
Oak Park Heights made employer contributions totaling $27,899 which represent
.0321% of total contributions of all employers participating in the system
($92,987,000) for the year ended June 30, 1987. The City's contributions were
made by the required due dates.
Information on investment activity and a listing of specific investments of the
PERA can be obtained by writing to 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.
During 1987 and as of June 30, 1987, PERA held no securities issued by the City
or other related parties.
RESTRICTIONS OF FUND EQUITY
Major fund equity designations at December 31, 1987 and 1986 are as follows:
December 31,
1987 1986
General Fund:
Cash flow designation $ 499,260
Designated for contingent employee benefits 98,912
General contingency designation 153,161
Special Revenue Funds:
Designated for ensuing years expenditures -0- $ 35,671
Debt Service Funds:
Reserved for debt service 383,354 139,197
Capital Project Funds:
Designated for capital improvements 1,142,234 933,361
Totals $2,276,921 $1,108,229
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 16 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
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.
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 scheduled levies totaled $486,999.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Page 17 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
Note 6 - DEFERRED AD VALOREM TAX LEVIES - SPECIAL ASSESSMENT DEBT
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 -0- 0.00
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 18 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
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, 1987 and 1986 were as
follows:
December 31,
1987 1986
Current value credits $ 507 $ 546
Debt service credits 132,565 146,427
Deferred charges 4,497 5,931
Total $ 137,569 $ 152,904
Note 8 - SEGMENT INFORMATION
The City maintains one Enterprise Fund which provides water and sewer services.
Segment information for the year ended December 31, 1987 is as follows:
Water Sewer
Operating revenue $ 116,151 $ 161,949
Operating expenses before depreciation 62,713 107,459
Depreciation 28,499 22,783
Operating income 24,939 31,707
CITY OF OAK PARK HEIGHTS, MINNESOTA
Page 19 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
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 $33,949. These interfund
receivables / payables are planned to be eliminated in 1988. All amounts con-
sist of year -end closing adjustments to the accounting records of the City.
Note 11 - CHANGE IN ACCOUNTING PRINCIPLE
The Governmental Accounting Standards Board (GASB) issued in January 1987,
Statement 6 "Accounting and Financial Reporting for Special Assessments ".
Statement 6 established accounting and financial reporting standards for
capital improvements financed by special assessments. The City adopted the
principles of Statement 6 for the year ended December 31, 1987 which resulted
in the following changes.
• Special Assessment fund type has been eliminated.
• The Long -Term portion of Special Assessment debt is now accounted for
within the General Long -Term Debt Account Group.
• Debt Service related to Special Assessment debt is now accounted for in
The Debt Service Fund Type.
• Special Assessment revenue is recognized under the modified accrual
basis of accounting.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Page 20 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
Note 11 - CHANGE IN ACCOUNTING PRINCIPLE (Continued)
Fund balances for the years ended December 31, 1987 and 1986 were restated as
follows:
Debt Capital Special
Service Project Assessment
Fund Fund Fund
Fund balance at December 31, 1986
as previously reported $ 5,163 $ 176,494 $ 857,296
Cumulative effect of change in
accounting for special assessment
revenue (200,582)
Reclassification of special
assessment debt to general long-
term debt 232,000
Changes in fund classification 134,034 754,680 (888,714)
Fund balance at December 31, 1986
as restated $ 139,197 $ 931,174 $ -0-
Debt Capital Special
Service Project Assessment
Fund Fund Fund
Fund balance at December 31, 1987
before change $ 6,444 $ 152,033 $ 324,809
Cumulative effect of change in
accounting for special assessment
revenue (150,698)
Reclassification of special
assessment debt to general long-
term debt 1,193,000
Changes in fund classification 376,910 990,201 (1,367,111)
Fund balance at December 31, 1987
after change $ 383,354 $1,142,234 $ -0-
CITY OF OAK PARK HEIGHTS, MINNESOTA
Page 21 of 21
NOTES TO FINANCIAL STATEMENTS
December 31, 1987
Note 11 - CHANGE IN ACCOUNTING PRINCIPLE (Continued)
The effect of the change on net increase (decrease) in fund balance for the
year ended December 31, 1987 is as follows:
Change In
Accounting Principle Increase
Before After (Decrease)
Debt Service Fund:
Revenue $ 25,458 $ 227,306 $ 201,848
Expenditures 24,177 103,710 79,533
Revenue over expenditures 1,281 123,596 122,315
Other increases -0- 120,561 120,561
Net increase in fund balance $ 1,281 $ 244,157 $ 242,876
Capital Project Fund:
Revenue $ 12,268 $ 114,987 $ 102,719
Expenditures 128,254 858,158 729,904
Revenue over (under) expenditures (115,986) (743,171) (627,185)
Other increases 100,000 962,626 862,626
Net increase (decrease) in
fund balance $ (15,986) $ 219,455 $ 235,441
Special Assessment Fund:
Revenue $ 254,794 $ -0- $ (254,794)
Expenditures 775,468 -0- (775,468)
Revenue over (under) expenditures (520,674) -0- 520,674
Other increases (decreases) (11,813) -0- 11,813
Net increase (decrease) in
fund balance $ (532,487) $ -0- $ 532,487
Note 12 - POST RETIREMENT BENEFITS
The City has agreed to pay post- retirement medical premiums of a retired
police officer. The amount of such future payments is $150 per month until
June, 1993.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 6
GENERAL FUND
BALANCE SHEET
December 31, 1987
December 31,
1987 1986
Assets (Memorandum
Only)
Cash and investments $ 803,783 $ 740,283
Accounts receivable 12 10
Due from other governmental units 1,838 2,672
Due from other funds 31,525 77
Accounts receivable - certified 5,598 5,598
Taxes receivable:
Delinquent 27,282 23,262
Due from County 7,518
Total assets $ 870,038 $ 779,420
Liabilities and Fund Balance
Liabilities:
Accounts payable 56,663 $ 53,941
Salaries payable 1,852 3,478
Due to other governmental units 868 1,854
Due to other funds 602 4,365
Deferred revenue 27,282 23,262
Total liabilities 87,267 86,900
Fund balance:
Unreserved:
Designated for cash flow 499,260
Designated for contingent employee benefit 98,912
Designated for general contingency 153,161
Undesignated 31,438 692,520
Total fund balance 782,771 692,520
Total liabilities and fund balance $ 870,038 $ 779,420
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, 1987
1987
Over
(Under) 1986
Budget Actual Budget Actual
(Memorandum
Revenue: Only)
General property taxes:
Current and delinquent $681,038 $579,557
Other 598
Total general property taxes $685,364 681,636 $ (3,728) 579,557
Intergovernmental:
State:
Homestead credit 59,636 59,636 51,793
Local government aid 99,650 99,522 (128) 99,656
Police aid 16,500 21,161 4,661 16,892
Other 100 (100)
Surcharge rebate 400 2,875 2,475
Total state 176,286 183,194 6,908 168,341
County:
Gravel tax allocation 1,215 1,215 307
Total intergovernmental 176,286 184,409 8,123 168,648
Licenses and permits 17,080 18,882 1,802 22,716
Charges for services:
Current 2,500 3,993 1,493 5,031
Administrative - Enterprise Fund 31,500 31,500 30,000
Total charges for services 34,000 35,493 1,493 35,031
Fines and forfeits 25,000 31,809 6,809 28,474
Interest on investments 35,000 37,686 2,686 38,486
Refunds and reimbursements 500 5,490 4,990 466
Sale of property 275 275 1,880
Donations 200 75 (125) 675
Total revenue 973,430 995,755 22,325 875,933
Expenditures:
General government:
Mayor and council:
Current:
Personal services 24,800 28,752 3,952 26,062
Contractual services 58,500 63,510 5,010 55,372
Total mayor and council $ 83,300 $ 92,262 $ 8,962 $ 81,434
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, 1987
1987
Over
(Under) 1986
Budget Actual Budget Actual
Expenditures: (continued) (Memorandum
General government: (continued) Only)
Elections:
Current:
Personal services $ 946
Materials and supplies 270
Total elections $ -0- $ -0- $ -0- 1,216
City clerk:
Current:
Personal services 76,400 74,117 (2,283) 68,736
Materials and supplies 2,100 2,111 11 1,794
Contractual services 4,550 3,889 (661) 4,411
Total current 83,050 80,117 (2,933) 74,941
Capital outlay 500 550 50 769
Total city clerk 83,550 80,667 (2,883) 75,710
Planning and zoning:
Current:
Contractual services 1,500 1,211 (289) 4,726
City hall:
Current:
Materials and supplies 3,300 3,216 (84) 3,065
Contractual services 12,100 5,998 (6,102) 7,481
Total current 15,400 9,214 (6,186) 10,546
Capital outlay 3,498 3,498 -0- 541
Total city hall 18,898 12,712 (6,186) 11,087
Assessor:
Current:
Personal services 6,920 6,410 (510) 6,205
Engineering:
Current:
Contractual services 3,000 1,163 (1,837) 1,044
General management:
Current:
Personal services 7,000 9,519 2,519 12,027
Materials and supplies 600 641 41 1,893
Contractual services 5,750 5,319 (431) 7,867
Total general management 13,350 15,479 2,129 21,787
Total general government $210,518 $209,904 $ (614) $203,209
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, 1987
1987
Over
(Under) 1986
Budget Actual Budget Actual
Expenditures: (continued) (Memorandum
Public safety: Only)
Police department:
Current:
Personal services $275,570 $264,054 $(11,516) $231,590
Materials and supplies 16,500 12,033 (4,467) 11,763
Contractual services 41,400 32,317 (9,083) 31,702
Total current 333,470 308,404 (25,066) 275,055
Capital outlay 3,500 3,137 (363) 1,892
Total police department 336,970 311,541 (25,429) 276,947
Fire protection:
Current:
Contractual services 12,500 14,710 2,210 10,823
Capital outlay 7,499
Total fire protection 12,500 14,710 2,210 18,322
Animal control:
Current:
Materials and supplies 51 51 81
Contractual services 6,000 4,215 (1,785) 465
Total animal control 6,000 4,266 (1,734) 546
Total public safety 355,470 330,517 (24,953) 295,815
Streets and highways:
Streets and alleys:
Current:
Materials and supplies 700 159 (541) 488
Contractual services 10,000 14,785 4,785 7,336
Total streets and alleys 10,700 14,944 4,244 7,824
Snow and ice removal:
Current:
Contractual services 25,000 9,711 (15,289) 14,886
Street lighting:
Current:
Contractual services 36,000 30,555 (5,445) 30,480
Arboreous:
Current:
Personal services 400 308 (92) 292
Materials and supplies 25 14 (11) 42
Contractual services 50 23 (27) 34
Total arboreous 475 345 (130) 368
Total streets and highways $ 72,175 $ 55,555 $(16,620) $ 53,558
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, 1987
1987
Over
(Under) 1986
Budget Actual Budget Actual
Expenditures: (continued) (Memorandum
Sanitation: Only)
Refuse collection and disposal:
Current:
Contractual services $112,000 $111,041 $ (959) $ 87,038
Tree removal and planting:
Current:
Contractual services 3,000 13,678 10,678 10,228
Total sanitation 115,000 124,719 9,719 97,266
Recreation:
Parks, playgrounds and rinks:
Current:
Personal services 98,250 84,724 (13,526) 84,972
Materials and supplies 3,450 2,818 (632) 2,028
Contractual services 12,400 5,289 (7,111) 7,351
Total current 114,100 92,831 (21,269) 94,351
Capital outlay 2,313 2,113 (200) 200
Total recreation 116,413 94,944 (21,469) 94,551
Contingency:
Current:
Contractual services 3,189 (3,189)
Total expenditures 872,765 815,639 (57,126) 744,399
Revenue over expenditures 100,665 180,116 79,451 131,534
Other increases (decreases):
Operating transfer from
Revenue Sharing Fund 7,500
Operating transfer to
Capital Project Fund (100,000) (100,000) (104,913)
Total other increases (decreases) (100,000) (100,000) -0- (97,413)
Net increase in fund balance $ 665 80,116 $ 79,451 34,121
Fund balance - January 1 692,520 656,865
Residual equity transfer:
From Special Revenue Fund 1,767
From Capital Project Fund 10,173 1,534
To Capital Project Fund (1,805)
Fund balance - December 31 $782,771 $692,520
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, 1987
December 31,
1987 1986
Assets
(Memorandum
Only)
Cash and investments $ 35,989
Total assets $ -0- $ 35,989
Liabilities and Fund Balance
Liabilities:
Accounts payable $ 318
Total liabilities $ -0- 318
Fund balance:
Unreserved:
Designated for ensuing years budget 35,671
Total fund balance -0- 35,671
Total liabilities and fund balance $ -0- $ 35,989
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, 1987
1987
Over
(Under) 1986
Budget Actual Budget Actual
Revenue: (Memorandum
Intergovernmental: Only)
Federal grants $ 641 $ 641 $ 23,857
Interest on investments $ 500 972 472 2,243
Donations and contributions 11,490
Total revenue 500 1,613 1,113 37,590
Expenditures:
General government:
General management:
Current:
Materials and supplies 253 253 243
Contractual services 4,500 4,500 4,500
Total general government 4,500 4,753 253 4,743
Streets and highways:
Streets and alleys:
Capital outlay 14,000 30,764 16,764 22,705
Total expenditures 18,500 35,517 17,017 27,448
Revenue over (under) expenditures (18,000) (33,904) (15,904) 10,142
Other (decreases):
Operating transfer to General Fund (7,500)
Net increase (decrease) in fund balance $(18,000) (33,904) $(15,904) 2,642
Fund balance - January 1 35,671 33,029
Residual equity transfer to General Fund (1,767)
Fund balance - December 31 $ -0- $ 35,671
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 1987
G.O.
Storm Sewer
Improvement Storm Sewer
Bonds of 1971 Bonds of 1982
Assets
Cash and investments $ 37,292 $ 6,499
Taxes receivable:
Delinquent 455 957
Due from County
Due from other funds 138
Special assessments:
Delinquent
Deferred 920
Special deferred
Due from County
Total assets $ 38,805 $ 7,456
Liabilities and Fund Balance
Liabilities
Deferred revenue $ 1,375 $ 957
Due to other funds 43 55
Total liabilities 1,418 1,012
Fund balance:
Reserved for debt service 37,387 6,444
Total liabilities and fund balance $ 38,805 $ 7,456
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 10
$165,000 G.O.
Improvement $80,000 G.O. Improvement December 31,
Bonds of 1982 Bonds of 1983 Bonds of 1987 1987 1986
$ 61,574 $ 45,656 $ 231,252 $ 382,273 $ 136,571
628 123 2,163 2,329
714
695 51 884 3,492
5,835 5,835 6,043
17,400 13,682 32,002 60,613
14,800 14,800 14,800
2,024 2,024
$ 95,097 $ 67,371 $ 231,252 $ 439,981 $ 224,562
$ 32,828 $ 19,640 $ 54,800 $ 83,785
26 1,703 1,827 1,580
32,854 21,343 $ -0- 56,627 85,365
62,243 46,028 231,252 383,354 139,197
$ 95,097 $ 67,371 $ 231,252 $ 439,981 $ 224,562
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 1987
G.O.
Storm Sewer
Improvement Storm Sewer
Bonds of 1971 Bonds of 1982
Revenue:
General property taxes:
Current and delinquent $ 5,291
Storm sewer ad valorem taxes:
Current -0- $ 23,117
Special assessments:
Current and delinquent 322
Prepayments
Penalties and interest
Total special assessments 322 -0-
Intergovernmental:
State:
Homestead credit 438 2,018
Interest on investments 2,271 323
Total revenue 8,322 25,458
Expenditures:
Debt service:
Principal 10,000 5,000
Interest 2,560 18,977
Paying agent fees 200 200
Total expenditures 12,760 24,177
Revenue over (under) expenditures (4,438) 1,281
Other financing sources (uses):
Bond proceeds
Net increase (decrease) in fund balance (4,438) 1,281
Fund balance - January 1 41,825 5,163
Residual equity transfer
Fund balance - December 31 $ 37,387 $ 6,444
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 11
$165,000 G.O.
Improvement $80,000 G.O. Improvement December 31,
Bonds of 1982 Bonds of 1983 Bonds of 1987 1987 1986
(Memorandum
Only)
$ 11,144 $ 4,477 $ 20,912 $ 30,877
-0- -0- 23,117 23,147
11,511 3,675 15,508 9,618
13,464 6,841 $ 128,240 148,545 7,286
169 52 221 1,386
25,144 10,568 128 164,274 18,290
958 400 3,814 4,818
3,179 2,427 6,989 15,189 12,173
40,425 17,872 135,229 227,306 89,305
15,000 9,000 39,000 59,000
1 3, 025 5, 01 3 24,538 64,113 43,942
197 597 481
28,222 14,013 24,538 103,710 103,423
1 2, 203 3,859 1 1 0, 691 1 23, 596 (14,118)
120,561 120,561
12,203 3,859 231,252 244,157 (14,118)
50,040 42,169 -0- 139,197 212,841
(59,526)
$ 62,243 $ 46,028 $ 231,252 $ 383,354 $ 139,197
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, 1987
Swagerts Totals
Closed Capital Completed 9th December 31,
Bond Fund Improvements Construction Utilities 1987 1986
Assets (Memorandum
Only)
Cash and investments $ 775,427 $ 177,522 $ 61,617 $ 243,239 $1,257,805 $ 923,036
Accounts receivable 4,935
Due from other funds 1,167 265 1,432 3,901
Taxes receivable:
Delinquent 196 196 1,125
Due from County 283
Special assessments:
Delinquent 4,460 486 4,946 4,839
Deferred 64,371 28,744 93,115 114,287
Due from County 296
Due from developer 2,387
Total assets $ 845,621 $ 177,522 $ 91,112 $ 243,239 $1,357,494 $1,055,089
Liabilities And
Fund Balance
Liabilities:
Accounts payable $ 4,518 $ 11 $ 6,819 $ 11,348 $ 12
Contracts payable 20,971 84,664 105,635
Due to other funds 20 20 3,652
Deferred revenue $ 69,027 29,230 98,257 120,251
Total liabilities 69,027 25,489 29,261 91,483 215,260 123,915
Fund balance (deficit):
Unreserved:
Designated for committed
contracts 6,180 102,397 108,577
Designated for capital
improvements 776,594 145,853 61,851 49,359 1,033,657 933,361
Undesignated (2,187)
Total fund balance 776,594 152,033 61,851 151,756 1,142,234 931,174
Total liabilities and
fund balance $ 845,621 $ 177,522 $ 91,112 $ 243,239 $1,357,494 $1,055,089
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 1987
Storm Sewer
Closed Capital Drainage
Bond Fund Improvements Improvement
Revenue:
General property taxes:
Current and delinquent $ 256 $ 382
Special assessments:
Current and delinquent 15,060
Prepayments 3,926
Penalties and interest 226
Total special assessments 19,212 -0-
Intergovernmental:
State:
Homestead credit
Interest - other
Interest on investments 46,832 $ 11,349
Connection charges 8,087
Total revenue 74,387 11,349 382
Expenditures:
Professional services 1,573
Interfund interest
Construction costs 62,698
Capital outlay 63,256
Total expenditures 1,573 125,954 -0-
Revenue over (under) expenditures 72,814 (114,605) 382
Other increases (decreases):
Operating transfer from General Fund 100,000
Bond proceeds
Total other increases (decrease) -0- 100,000 -0-
Net increase (decrease) in fund balance 72,814 (14,605) 382
Fund balance (deficit) - January 1 703,780 166,638 (2,080)
Residual equity transfer:
From General Fund 1,698
From Debt Service Fund
To General Fund
Fund balance - December 31 $ 776,594 $ 152,033 $ -0-
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 13
Swager's Totals
Completed 9th Interim EDP December 31,
Construction Utilities Construction System 1987 1986
(Memorandum
Only)
$ 638 $ 19,683
$ 9,610 24,670 12,008
2,478 6,404 25,565
148 374 437
12,236 31,448 38,010
1,749
2,880
3,360 $ 12,736 $ 537 74,814 52,470
8,087 30,720
15,596 12,736 $ -0- 537 114,987 145,512
1,573 1,178
2,880
4,752 723,606 500 791,556 12,847
1,800 65,056 17,404
4,752 723,606 -0- 2,300 858,185 34,309
10,844 (710,870) -0- (1,763) (743,198) 111,203
100,000 104,913
862,626 862,626
-0- 862,626 -0- -0- 962,626 104,913
10,844 151,756 -0- (1,763) 219,428 216,116
51,007 -0- (107) 11,936 931,174 657,066
107 1,805
59,526
(10,173) (10,173) (1,534)
$ 61,851 $ 151,756 $ -0- $ -0- $1,142,234 $ 931,174
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 14
ENTERPRISE FUND
BALANCE SHEET
December 31, 1987
December 31,
1987 1986
Assets (Memorandum
Only)
Current assets:
Cash and investments $ 557,162 $ 429,969
Due from other funds 108 2,500
Accounts receivable:
Customers 69,062 54,580
Certified to County 1,072 1,627
Other 2,750
Prepaid MWCC 7,115 7,737
Due from other governmental units 12,750 2,370
Total current assets 650,019 498,783
Utility plant in service - at cost:
Buildings and structures 504,040 504,040
Machinery and equipment 53,848 53,848
Distribution and collection system 2,062,834 2,062,834
Total 2,620,722 2,620,722
Less: Allowance for depreciation (668,125) (616,843)
Net fixed assets 1,952,597 2,003,879
Total assets $2,602,616 $2,502,662
Liabilities And Fund Equity
Current Liabilities:
Accounts payable $ 2,268 $ 2,804
Due to other governmental units 340 1,238
Due to other funds 31,500 373
Accrued interest 2,606 2,906
Meter deposits 57,237 55,489
Bonds payable 15,000 15,000
Total current liabilities 108,951 77,810
Noncurrent liabilities:
Bonds payable 110,000 125,000
Total liabilities 218,951 202,810
Fund equity:
Contributions from property owners - net 1,727,079 1,768,913
Retained earnings:
Undesignated 656,586 530,939
Total fund equity 2,383,665 2,299,852
Total liabilities and fund equity $2,602,616 $2,502,662
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 15
ENTERPRISE FUND
STATEMENT OF REVENUE, EXPENSES AND
CHANGES IN RETAINED EARNINGS
For The Year Ended December 31, 1987
Totals
Water Sewer December 31,
Operating Operating 1987 1986
(Memorandum
Revenue: Only)
Customer billings $ 114,764 $ 160,043 $ 274,807 $ 220,191
Penalties 1,387 1,906 3,293 2,511
Total operating revenue 116,151 161,949 278,100 222,702
Expenses:
Contractual services 34,703 8,673 43,376 31,292
MWCC charges 82,469 82,469 83,373
Materials and supplies 12,260 567 12,827 16,860
Administrative and personnel charge 15,750 15,750 31,500 30,000
Depreciation:
On purchased assets 7,429 2,018 9,447 9,516
On contributed assets 21,070 20,765 41,835 41,835
Total operating expenses 91,212 130,242 221,454 212,876
Operating income $ 24,939 $ 31,707 56,646 9,826
Other income (expenses):
Interest on investments 32,059 27,987
Plumbing permits 384 368
Refunds and reimbursements 4,849 2,033
Charges for services 1,303 439
Bond interest (11,325) (12,500)
Paying agent fees (104) (104)
Gain on sale of truck 2,500
Total other income 27,166 20,723
Net income 83,812 30,549
Other increases (decreases):
Credit arising from transfer of depreciation to
contributions from property owners 41,835 41,835
Net increase in retained earnings 125,647 72,384
Retained earnings - January 1 530,939 458,555
Retained earnings - December 31 $ 656,586 $ 530,939
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 16
ENTERPRISE FUND
STATEMENT OF CASH FLOWS
For The Year Ended December 31, 1987
Totals
December 31,
1987 1986
(Memorandum
Only)
Cash Flows from Operating Activities:
Net income $ 83,812 $ 30,549
Noncash expenses (revenues) included in net income:
Depreciation 51,282 51,351
Gain on sale of equipment (2,500)
Increase in receivable (24,042) (4,208)
Increase (decrease) in payables 31,141 (11,165)
Net cash provided by operating activities 142,193 64,027
Cash Flows from Investing Activities:
Sale of equipment -0- 2,500
Cash Flows from Financing Activities:
Debt reduction - long -term (15,000) (15,000)
Net cash used by financing activities (15,000) (12,500)
Net increase in cash $127,193 $ 51,527
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 17
TRUST AND AGENCY FUNDS
COMBINED BALANCE SHEET
December 31, 1987
Developers Totals
Deposit Investment December 31,
Fund Fund 1987 1986
Assets (Memorandum
Only)
Cash $ 36 $ 36 $ 604
Accrued interest receivable $ 20,533 20,533 19,935
Accounts receivable 317 317 328
Due from developers 475 475 821
Total assets $ 828 $ 20,533 $ 21,361 $ 21,688
Liabilities
Cash overdraft $ 20,533 $ 20,533 $ 19,935
Accounts payable $ 78 78 534
Due to developers 750 750 1,219
Total liabilities $ 828 $ 20,533 $ 21,361 $ 21,688
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 18
TRUST AND AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For The Year Ended December 31, 1987
Balance Balance
January 1, December 31,
1987 Additions Deletions 1987
Developers' Deposits Fund:
Assets
Cash $ 604 $ 8,445 $ 9,013 $ 36
Accounts receivable 328 317 328 317
Due from developers 821 4,034 4,380 475
Total assets $ 1,753 $ 12,796 $ 13,721 $ 828
Liabilities
Accounts payable $ 534 $ 78 $ 534 $ 78
Due to developers 1,219 2,633 3,102 750
Total liabilities $ 1,753 $ 2,711 $ 3,636 $ 828
Investment Fund:
Assets
Accrued interest $ 19,935 $ 20,533 $ 19,935 $ 20,533
Liabilities
Cash overdraft $ 19,935 $14,560,348 $14,559,750 $ 20,533
Total Agency:
Assets
Cash $ 604 $ 8,445 $ 9,013 $ 36
Accrued interest receivable 19,935 20,533 19,935 20,533
Due from developers 821 4,034 4,380 475
Due from County 328 317 328 317
Total assets $ 21,688 $ 33,329 $ 33,656 $ 21,361
Liabilities
Cash overdraft $ 19,935 $14,560,348 $14,559,750 $ 20,533
Accounts payable 534 78 534 78
Due to developers 1,219 2,633 3,102 750
Total liabilities $ 21,688 $14,563,059 $14,563,386 $ 21,361
The accompanying notes are an integral part of these financial statements,
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 19
STATEMENT OF GENERAL FIXED ASSETS
December 31, 1987
(UNAUDITED)
Balance Balance
January 1, December 31,
Description 1987 Additions Deletions 1987
Land $ 50,625 $ 50,625
Land improvements 49,921 49,921
Buildings and structures 496,508 $ 70,594 567,102
Machinery and equipment 200,293 31,637 $ 6,631 225,299
Furniture and fixtures 18,757 4,927 23,684
Totals $816,104 $107,158 $ 6,631 $916,631
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 20
STATEMENT OF GENERAL LONG -TERM DEBT
December 31, 1987
December 31,
1987 1986
Amount Available and to be Provided for the (Memorandum
Retirement of Long -Term Debt Only)
Bonds:
Amount available in Debt Service Funds $ 383,354 $ 139,197
Amount to be provided from future tax levies/
special assessment collections 994,646 282,803
Compensated absences:
Amount to be provided 30,342 18,055
Total available and to be provided $1,408,342 $ 440,055
General Long -Term Debt Payable
Bonds payable:
General Obligation Bonds:
Storm Sewer Bonds $ 185,000 $ 190,000
Special Assessment Bonds with Governmental Commitment:
G.O. Storm Sewer Improvement Bonds of 1971 40,000 50,000
G.O. Improvement Bonds of 1982 105,000 120,000
G.O. Improvement Bonds of 1983 53,000 62,000
G.O. Improvement Bonds of 1987 995,000
Compensated absences payable 30,342 18,055
Total general long -term debt payable $1,408,342 $ 440,055
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, 1987
Final Net
Payment Interest
Dated Due Rate
Bonded Indebtedness:
General Debt:
Storm Sewer Bonds of 1982 i �; G 12/1/82 12/1/03 10.12%
Special Assessment Bonds with governmental
commitment:
General Obligation Storm Sewer Improvement
Bonds of 1971 / >.G' 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 2/1/93 8.60
General Obligation Improvement Bonds of 1987 i'", y 7 /1/ 87
���'J' < - -� 12/1/93 5 ®97
Total special assessment bonds
with governmental commitment
Revenue Bonds:
General obligation Water and Sewer Bonds of 1980 ' 010 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 12/31/87 In 1988 In 1988
$ 205,000 $ 20,000 $ 185,000 $ 5,000 $ 18,553
173,000 133,000 40,000 10,000 1,995
165,000 60,000 105,000 15,000 11,450
80,000 27,000 53,000 9 4,253
995,000 995,000 58,890
1,413,000 220,000 1,193,000 34,000 76,588
200,000 75,000 125,000 15,000 10,425
$1,818,000 $ 315,000 $1,503,000 $ 54,000 $105,566
CITY OF OAK PARK HEIGHTS, MINNESOTA
Exhibit 2
SPECIAL ASSESSMENT DEBT WITH GOVERNMENTAL COMMITMENT
SCHEDULE OF DEBT SERVICE PAYMENTS TO MATURITY
December 31, 1987
G.O. $165,000 $80,000 $995,000
Storm Sewer G.O. G.O. G.O.
Improvement Improvement Improvement Improvement
Bonds Bonds Bonds Bonds
of 1971 of 1982 of 1983 of 1987 Total
Bonds payable $ 40,000 $ 105,000 $ 53,000 $ 995,000 $1,193,000
Future interest
payable 4,560 42,938 13,838 237,240 298,576
Totals $ 44,560 $ 147,938 $ 66,838 $1,232,240 $1,491,576
Year of maturity:
1988 $ 11,995 $ 26,450 $ 13,252 $ 58,890 $ 110,587
1989 11,425 24,875 12,483 258,890 307,673
1990 10,855 23,263 11,705 247,390 293,213
1991 10,285 26,650 10,917 235,890 283,742
1992 24,450 10,121 224,090 258,661
1993 22,250 8,360 207,090 237,700
Totals $ 44,560 $ 147,938 $ 66,838 $1,232,240 $1,491,576
CITY OF OAK PARK HEIGHTS, MINNESOTA
Exhibit 3
REVENUE BONDS AND GENERAL DEBT BONDS
DEBT SERVICE PAYMENTS TO MATURITY
December 31, 1987
Special
Taxing District
$205,000
Water And Sewer Storm Sewer
Revenue Bond Bond of 1982
Bonds payable $ 125,000 $ 185,000
Future interest payable 44,587 180,323
Total $ 169,587 $ 365,323
Year of maturity;
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 $ 169,587 $ 365,323
CITY OF OAK PARK HEIGHTS, MINNESOTA
Exhibit 4
SECURITIES FOR DEPOSITS
December 31, 1987
Description Amount
Federal GNMA Trust $ 517,525
U.S. T -Notes 2,020,601
Municipal Revenue Bond 66,805
Federal National Mortgage 1,431,603
Federal Home Loan Bank Bond 200,000
Total $4,236,534
The above securities have been:
Assigned By: Held By: Amount
First State Bank of Bayport First National Bank of St. Paul $ 395,167
Cosmopolitan State Bank of National City Bank 456,652
Stillwater
Washington Federal Savings U.S. League Trust Company of 517,525
and Loan Dallas, Texas
Oak Park Heights State Bank Norwest Bank 717,190
First National Bank of Stillwater First Minneapolis 1,450,000
First National Bank of Stillwater First St. Paul 300,000
First National Bank of Stillwater Marquette 400,000
Total $4,236,534
CITY OF OAK PARK HEIGHTS, MINNESOTA
Exhibit 5
INSURANCE IN FORCE
December 31, 1987
Coverage Amount
Umbrella liability:
Each incident /aggregate $1,000,000/1,000,000
Automobile liability 600,000
General liability 600,000
Errors or omissions 600,000
Property Blanket Building and Contents 1,501,700
Miscellaneous radio equipment 12,850
Contractors equipment 32,500
Workmen's compensation 100,000
Business Auto Policy:
Liability CSL 600,000
Uninsured motorist 600,000
Underinsured motorist 600,000
Physical damage:
Comprehensive ($250 deductible) A.C.V.
Collision ($500 deductible) A.C.V.
Public officials' errors and omissions ($1,000 deductible) 600,000
Public employees bond:
Clerk - treasurer 50,000
Deputy Clerk - treasurer 50,000
Bond - Public Employees Blanket Bond 30,000
Law Enforcement Liability ($2,500 deductible) 500,000
CITY OF OAK PARK HEIGHTS, MINNESOTA
Exhibit 6
FUTURE SCHEDULED TAX LEVIES
December 31, 1987
Special
Special Assessment Bonds Taxing District
Year Of Year of Bond Issue Storm Sewer Total
Collection 1971 1982 Total Bonds of 1982 All Bonds
1988 $ 24,731
$ 24,731
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 $ 24,000 $ 31,000 $ 55,000 $ 383,614 $ 438,614
CITY OF OAK PARK HEIGHTS, MINNESOTA
Exhibit 7
TAXABLE VALUATIONS, TAX LEVIES AND MILL RATES
1987 1986
Storm Sewer Storm Sewer
District Total City District Total City
Taxable valuations:
Real property $37,547,027 $53,623,632 $36,823,539 $51,341,491
Personal property 920,587 873,803
Total 37,547,027 54,544,219 36,823,539 52,215,294
Fiscal disparity adjustment:
Distribution 746,905 1,822,244 513,440 1,490,130
Contribution (2,741,116) (3,397,242) (2,239,473) (2,752,913)
Total (1,994,211) (1,574,998) (1,726,033) (1,262,783)
Total taxable valuation $35,552,816 $52,969,221 $35,097,506 $50,952,511
Tax levies and mill rates:
Year of levy 1987 1986
Year of collection 1988 1987
Amount Mill Amount Mill
Levied Rates Levied Rates
City -wide levies:
Revenue $899,000 17.034 $745,000 14.813
Bonded debt 22,500 .449
Total $899,000 17.034 $767,500 15.262
Storm Sewer District:
Storm Sewer Bonds of 1982 $ 24,731 .701 $ 25,177 .461
CITY OF OAK PARK HEIGHTS, MINNESOTA
Exhibit 8
DEBT SERVICE ESCROW AGENT ACCOUNT
BALANCE SHEET
December 31, 1987
First Trust
St. Paul
December 31,
Assets 1987
Cash $ 18,331
Investments 343,182
Total cash and investments 361,513
Amount to be provided by future interest 283,487
Total assets $ 645,000
Liabilities
Liabilities;
Bonds payable $ 645,000
Total liabilities $ 645,000
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, 1987
Amount to be provided - January 1, 1987 $(277,317)
Additions:
Interest received on investments 26,707
Deductions:
Bond interest and paying agent fees 32,877
Amount to be provided - December 31, 1987 $(283,487)
CITY OF OAK PARK HEIGHTS, MINNESOTA
Exhibit 10
DEBT SERVICE ESCROW AGENT ACCOUNT
BONDS PAYABLE
December 31, 1987
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 $ 375,000 $ 270,000 $ 645,000
Future interest payable 99,770 81,521 181,291
Totals $ 474,770 $ 351,521 $ 826,291
Year of maturity:
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 $ 474,770 $ 351,521 $ 826,291
STATISTICAL
SECTION
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 1
GENERAL AND SPECIAL REVENUE FUNDS
EXPENDITURES BY FUNCTION
Years 1978 Through 1987
(UNAUDITED)
Streets
General Public and Capital
Year Total Government Safety Highways 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
1965 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
1987 851,156 210,609 327,380 55,555 124,719 92,831 40,062
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 2
GENERAL AND SPECIAL REVENUE FUNDS
REVENUE BY SOURCE
Years 1978 Through 1987
(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
1987 997,368 681,636 185,050 18,882 31,809 38,658 35,493 5,840
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 3
PROPERTY TAX LEVIES AND COLLECTIONS
Years 1978 Through 1987
(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 Levy
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
1987 792,677 774,069 97.65 15,683 789,752 99.63 29,641 3.74
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 4
SPECIAL ASSESSMENT COLLECTIONS
Years 1982 Through 1987
(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
1987 40,260 38,170 94.94 2,140 100.12 10,781
LIL,
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2ity of Oak Park Heights, Minnesota
Legal Compliance Audit, Page 2
FINDING: Lack of Endorsement on Claims
CONDITION: The City does not employ a claim system. This is not uncommon
for Minnesota cities. There is a statutory requirement which
outlines the disbursing process and refers to approvals based
on a claim system. The City does have alternate approval
mechanisms which provide reasonable assurances that authorized
amounts are disbursed. The lack of claim procedures as
referred to in Minnesota statutes may be considered non-
compliance with statutes.
CRITERIA: MS 412.271 reads in part as follows:
412.271 DISBURSEMENTS.
Subd. 3. Endorsement on claims. The clerk shall
endorse on each claim required to be audited by the council
the word "disallowed" if such be the fact, or, "allowed in
the sum of $ ," if approved in whole or in part,
specifying in the latter case the items rejected. Each
order shall be so drawn that when signed by the treasurer
in an appropriate space, it becomes a check on the city
depository. Such order -check may have printed on its
reverse side, above the space for endorsement thereof by
the payee, the following statement: "The undersigned
payee, in endorsing this order - check, declares that the
same is received in payment of a just and correct claim
against the city of ....... and that no part of such claim
has heretofore been paid." When endorsed by the payee
named in the order - check, such statement shall operate and
shall be deemed sufficient as the required declaration of
the claim. Any order presented to the treasurer and not
paid for want of funds shall be so marked and paid in the
order of its presentation with interest from the date of
presentation at the rate of five percent or such lower rate
as is fixed by the council prior to its issuance.
RECOMMENDATION: Our office has requested clarification of this issue from the
Office of the State Auditor regarding the applicability of the
MS 412.271. Pending the result of this request, we will advise
the City of required corrective actions (if any). There is
pending 1988 legislation to amend the applicable statute.
City of Oak Park Heights, Minnesota
Legal Compliance Audit, Page 3
Further, for items not tested, based on our examination and the procedures
referred to above, nothing came to our attention to indicate that the City of
Oak Park Heights, Minnesota had not complied with such legal provisions.
This report is intended solely for the use of the City of Oak Park Heights and
should not be used for any other purpose. This restriction is not intended to
limit the distribution of this report, which is a matter of public record.
Respectfully submitted,
VOTO, TAUTGES, REDPATH & CO., LTD.
Certified Public Accountants
February 26, 1988