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HomeMy WebLinkAboutAnnual Financial Report CITY OF OAK PARK HEIGHTS, MINNESOTA ANNUAL FINANCIAL REPORT DECEMBER 31, 1988 CITY OF OAK PARK HEIGHTS, MINNESOTA TABLE OF CONTENTS (Page 1 of 2) Organization Independent Auditor's Report General Pumose Financial Statements Combined Balance Sheet - All Fund Types and Account Groups Statement I 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 Fund 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 Combinine and Individual Fund and Account GrouD Financial Statements General Fund: Balance Sheet Statement 6 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Statement 7 Debt Service Fund: Combining Balance Sheet Statement 8 Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 9 Capital Project Funds: Combining Balance Sheet Statement 10 Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 11 Enterprise Fund: Balance Sheet Statement 12 Statement of Revenue, Expenditures and Changes in Retained Earnings Statement 13 Statement of Cash Flows Statement 14 Trust and Agency Funds: Combining Balance Sheet Statement 15 Combining Statement of Changes in Assets and Liabilities Statement 16 Statement of General Fixed Assets Statement 17 Statement of General Long -Term Debt Statement 18 CITY OF OAK PARK HEIGHTS, MINNESOTA TABLE OF CONTENTS (Page 2 of 2) SuDDlementary 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 Tax 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 1988 Table 1 General and Special Revenue Funds - Revenue by Source - Years 1979 through 1988 Table 2 Property Tax Levies and Collections - Years 1979 through 1988 Table 3 Special Assessment Collections - Years 1982 through 1988 Table 4 CITY OF OAK PARK HEIGHTS, MINNESOTA ORGANIZATION December 31, 1988 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 o Treasurer: LaVonne Wilson Appointed Ile ,i .;iiliia ei._ elu4 ?OpII!lIIIII II a "I�lull'i.ii!li.l. l,anul,.,s'JIL'_ :II,LL. llll- lll.'lL lYll,'111W14L'11L,.1,,,, - ,e �l,_ -:_ -- - - -- i�niu'ae Ill „'IIHI 1II.1I,liluNll,l!1laLWl' Ilk ull l el Ill'! IS,IlI..I.AI'3tlUUW.u "e', -. - -- - - I '1 - y i lilt fNl - I "l "I. mom Cks L, — i a - - - - -- — - - - -} Iowa i I I - _a _ eon .. mmulam AV r - - - LII _ Y' - e. "welueell!IUIu:W .. l.YIIU6',9S4ul,Ll ;!' Is,nl�,i rv.�1191' }�,� �� ['`- -° Ile u[ V�I�III✓ IIWVNI�. �u3lunel r _I_I._��..II��:_el,d�d���I,�a,I ��._�.i. ., '.`- -�'- -- - -- Ate - I GENERAL PURPOSE FINANCIAL STATEMENTS CITY OF OAK PARK HEIGH'T'S, ME14NESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS DECEMBER 31, 1988 Governmental Fund Types Debt Capital Assets General Service Project Cash and investments 5911,344 $521,708 $1,312,117 Accrued interest receivable Accounts receivable 8,033 Due from other funds 18,000 1,151 3,658 Due from other governmental units 2,417 Due from developers Prepaid expenses Taxes receivable: Delinquent 20,201 1,092 Due from County 1,143 56 78 Special assessments receivable 664,685 80,092 Fixed assets (net of accumulated depreciation) Amount available in Debt Service Fund Amount to be provided for retirement of general long -term debt Total Assets 5961,138 $1,188,692 $1,395,945 Liabilities and Fund Equity Liabilities: Cash overdraft Accounts payable $64,705 $5,970 Salaries payable 4,352 Contracts payable 41,621 Accrued interest Due to other governmental units 1,175 $109 Due to other funds 22,742 98 Deposits / refunds payable Compensated absences payable Bonds payable Deferred revenue 20,201 665,777 80,093 Total liabilities 90,433 688,628 127,782 Fund Equity: Invested in general fixed assets Contributions - net Retained earnings: Undesignated Fund balance (deficit): Reserved for debt service 500,064 Unreserved: Designated 774,968 1,268,163 Undesignated 95, Total fund equity 870,705 500,064 1,268,163 Total liabilities and fund equity $961,138 $1,188,692 $1,395,945 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, 1VII31;NESOTA Statement 1 Proprietary Fiduciary Totals Fund Type Fund Type Account Groups (Memorandum Only) Trust and General General Long- December 31, Enterprise Agency Fixed Assets Term Debt 1988 1987 (unaudited) $661,765 $3,406,934 53,001,059 S47,765 47,765 20,533 70,603 130 78,766 78,811 137 22,946 33,949 2,417 14,588 1,798 1,798 475 9,370 9,370 7,115 21,293 29,641 1,277 744,777 152,722 1,909,020 5935,775 2,844,795 2,869,228 $500,064 500,064 383,354 872,435 872,435 1,024,988 $2,650,895 549,693 5935,775 $1,372,499 $8,554,637 57,616,463 548,669 $48,669 $20,533 $1,859 545 73,079 70,357 4,352 1,852 41,621 105,635 2,306 2,306 2,606 4,571 5,855 1,208 106 22,946 33,949 61,053 479 61,532 57,987 $33,499 33,499 30,342 110,000 1,339,000 1,449,000 1,503,000 766,071 180,339 179,895 49,693 $0 1,372,499 2,508,930 2,007,808 935,775 935,775 916,631 1,685,244 1,685,244 1,727,079 785,756 785,756 656,586 500,064 383,354 2,043,131 1,893,567 95,737 31,438 2,471,000 0 935,775 0 _ 6,045,707 5,608,655 $2,650,895 549,693 5935,775 $1,372,499 $8,554,637 57,616,463 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, 1988 Totals (Memorandum Only) Debt Capital December 31, Revenue: General Service Project 1988 1987 General property taxes $804,441 $39,258 $149 $843,848 $726,303 Intergovernmental 194,553 3,433 197,986 188,864 Licenses and permits 22,682 22,682 18,882 Fines and forfeits 27,788 27,788 31,809 Interest on investments 45,043 32,163 96,825 174,031 128,661 Charges for services 48,452 48,452 35,493 Special assessments 177,391 25,607 202,998 195,722 Connection charges 19,210 19,210 8,087 Other 7,691 7,691 5,840 Total revenue 1,150,650 252,245 141,791 1,544,686 1,339,661 Expenditures: Current: General government 257,214 1,446 258,660 212,182 Public safety 358,184 358,184 327,380 Streets and highways 72,221 72,221 55,555 Sanitation 143,567 143,567 124,719 Recreation 104,229 104,229 92,831 Capital outlay 20,301 7,013 27,314 105,118 Debt service: Principal 39,000 39,000 39,000 Interest 95,143 95,143 64,113 Paying agent fees 1,392 1,392 597 Construction costs 114,403 114,403 791,556 Total expenditures 955,716 135,535 122,862 1,214,113 1,813,051 Revenue over (under) expenditures 194,934 116,710 18,929 330,573 (473,390) Other increases (decreases): Operating transfers from other funds 107,000 107,000 100,000 Operating transfers to other funds (107,000) (107,000) (100,000) Bond proceeds _ 983,187 Total other increases (decreases) (107,000) 0 107,000 0 983,187 Net increases (decreases) in fund balance 87,934 116,710 125,929 330,573 509,797 Fund balance- January 1 782,771 383,354 1,142,234 2,308,359 1,798,562 Residual equity transfer. In 13,745 Out (13,745) Fund balance - December 31 $870,705 $500,064 $1,268,163 $2,638,932 $2,308,359 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 3 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND For The Year Ended December 31, 1988 1988 Over (Under) 1987 Budget Actual Budget Actual (Memorandum Revenue: Only) General property taxes $810,305 $804,441 ($5,864) $681,636 Intergovernmental 187,715 194,553 6,838 184,409 Licenses and permits 20,000 22,682 2,682 18,882 Fines and forfeits 30,600 27,788 (2,812) 31,809 Interest on investments 32,500 45,043 12,543 37,686 Charges for current services 46,750 48,452 1,702 35,493 Other 200 7,691 7,491 5,840 Total revenue 1,128,070 1,150,650 22,580 995,755 Expenditures: Current: General government 227,540 257,214 29,674 205,856 Public safety 373,500 358,184 (15,316) 327,380 Streets and highways 77,797 72,221 (5,576) 55,555 Sanitation 181,700 143,567 (38,133) 124,719 Recreation 116,150 104,229 (11,921) 92,831 Contingency 24,683 (24,683) Capital outlay 19,700 20,301 601 9,298 Total expenditures 1,021,070 955,716 (65,354) 815,639 Revenue over (under) expenditures 107,000 194,934 87,934 180,116 Other increases (decreases): Operating transfers to other funds (107,000) (107,000) (100,000) Total other increases (decreases): (107,000), (107,000) 0 (100,000) Net increase (decrease) in fund balance $0 87,934 $87,934 80,116 Fund balance- January 1 782,771 692,520 Residual equity transfer. In 11,940 Out (1,805) Fund balance- December 31 $870,705 $782,771 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEGHTS, MINNESOTA Statement 4 COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPE For The Year Ended December 31, 1988 Totals (Memorandum Only) December 31, 1988 1987 Operating revenue: Customer billings $292,406 $274,807 Penalties 2,919 3,293 Total operating revenue 295,325 278,100 Operating expenses: Contractual services 47,488 43,376 MWCC charges 101,837 82,469 Materials and supplies 10,985 12,827 Administrative charges 36,250 31,500 Depreciation 51,320 51,282 Total operating expenses 247,880 221,454 Net income (loss) from operations 47,445 56,646 Other income (expense): Interest on investments 45,331 32,059 Plumbing permits 510 384 Refunds and reimbursements 2,653 4,849 Charges for services 1,625 1,303 Bond interest (10,125) (11,325) Paying agent fees (104) (104) Total other income (expense) 39,890 27,166 Net income (loss) 87,335 83,812 Other increases (decreases): Credit arising from transfer of depreciation to contributions from property owners 41,835 41,835 Net increase (decrease) in retained earnings 129,170 125,647 Retained earnings -January 1 656,586 530,939 Retained earnings- December 31 $785,756 $656,586 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 Fof The Year Ended December 31, 1988 Totals (Memorandum Only) December 31, 1988 1987 Cash Flows From Operating Activities: Net income $87,335 $83,812 Non -cash expenses (revenues) included in net income: Depreciation 51,320 51,282 (Increase) deer; ase in receivables 12,747 (24,042) Increase (decrease) in payables (24,056) 31,141 Net cash provided by operating activities 127,346 142,193 Cash Flows From Investing Activities: Purchase of equipment (7,743) Cash Flows From Financing Activities: Debt reduction - long -term (15,000) (15,000) Net increase (decrease) in cash $104,603 $127,193 The accompanying notes are an integral part of these financial statements CITY OF OAK PARK HEIGHTS, MINNESOTA Page 1 of 17 NOTES TO FINANCIAL STATEMENTS December 31, 1988 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: Entitv Reason for inclusion /exclusion Included: None Excluded: Housing and Redevelopment There has been no financial activity of the Authority 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: General Fund - to account for all financial resources except those required to be accounted for in another fund. Debt Service Funds - to account for the accumulation of resources for, and the payment of, general long -term debt principal, interest and related costs. Cai)ital Proiect Funds - to account for financial resources to be used for the acquisition or construction of major capital facilities. PROPRIETARY FUNDS: Entemrise 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 providing 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 revenue earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 2 of 17 NOTES TO FINANCIAL STATEMENTS December 31, 1988 NOTE 1 - SUMMARY O _SIGNIFICANT AC COUNTING POLICIES (continued) FIDUCIARY FUNDS: Avencv 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 account group 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 and leases 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 (expenditures and other financing uses) in net current assets. All Proprietary Funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and liabilities (whether current or noncurrent) associated with this activity are included on their balance sheets. Their reported fund equity (net total assets) is segregated 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, 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 3 of 17 NOTES TO FINANCIAL STATEMENTS December 31, 1988 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, (continued) BASIS OF ACCOUNTING (cont'd) 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 funds. 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 financial statements as "Budget" represent the original budgeted amounts plus all revisions made during the year and/or for the year. The modified accrual basis of accounting is used by the City for budgetary data. The City monitors budget performance on the departmental basis. All amounts over budget have been approved by the City Council through the disbursement approval process. 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 not considered necessary to assure effective budgetary control or to facilitate effective cash planning and control. Any appropriations that need to be carried forward to the next year have to be re- appropriated by the City Council from the fund balance of the fund involved. NOTE 2 ,DXJAI _ NOTF,S O AL ._ AND ACCOTJIV ROIJPS CASH AND INVESTMENTS Cash balances from all funds are pooled and invested to the extent available in authorized investments. Earnings from investments are allocated to individual funds on the basis of the fund's available cash balance. Investments are stated at cost (plus interest added, if any) which approximates market value. Material purchase discounts and premiums are amortized over the term of the investment. Investment earnings are accrued at the balance sheet date. Cash and investment balances were as follows at December 31, 1988: Petty cash $ 50 Checking (12,792) Savings 29,979 Certificates of deposit 3.341.028 Total $ 3,358,265 CITY OF OAK PARK HEIGHTS, MINNESOTA Page 4 of 17 NOTES TO FINANCIAL STATEMENTS December 31, 1988 NOTE 2 - DETAIL NOTES ON ALL FTJND AND ACCOTJNT GROTJPS, (continued) 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 fast 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, 1988, the carrying amount and bank balance of the City's deposits was $3,358,265 and $3,380,132 respectively, all of which was covered by federal depository insurance or collateralized by securities held in the City's name. INVESTMENTS The City is authorized by Minnesota Statutes to invest in the following: (a) Direct obligations or obligations guaranteed by the United States or its agencies. (b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above. (c) General obligations of the State of Minnesota or any of its municipalities. (d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System. (e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. (f) Repurchase or reserve repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker - dealers. (g) Future contracts sold under authority of Minnesota Statutes 471.56, subd. 5. During 1988, the City chose not to invest in any of the above type of investments. MUNICIPAL STATE AID 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. Municipal State Aid (MSA) is recognized as revenue in the period the funds are designated for specific construction projects. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 5 of 17 NOTES TO FINANCIAL STATEMENTS December 31, 1988 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (continued) LOCAL GOVERNMENT AID 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 certified to Ramsey 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 approximately July 15 and December 15. Additionally, delinquent collections (November through December) are remitted to the City each January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after 3 years unless it is homesteaded, agricultural, or seasonal recreational land (as defined in state statutes) in which event the property is subject to such sale after 5 years. The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and homestead credits received by the City during the year are recognized as revenue for the current year. Additionally, taxes collected by the County by December 31 (remitted to the City the following January) and credits not received at the normal time are recognized as revenue for the current year. Homestead credits received by the City from the State are recognized as revenue when received in cash. Unpaid delinquent taxes are generally measurable but not available to finance the expenditures of the current year. Accordingly, these taxes are not recognized as revenue until they are collected by the County. Unpaid delinquent property taxes are reflected in the balance sheets at December 31 subject to 100% deferral of revenue. 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 1988 and 1987 totaled $26,128 and $21,438 respectively. Receipt of property taxes from this "Fiscal Disparities Pool" does not increase or decrease total tax revenue. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 6 of 17 NOTES TO FINANCIAL STATEMENTS December 31, 1988 NOTE 2 4 DETAIL. NOTES ON ALL FUND AND ACCOUNT GROUPS (continued) SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefiting properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. Usually, the City adopts the assessment roll when the individual project is completed or substantially completed. The City certifies the adopted assessment roll to the County for collection. Collection of annual installments including interest is handled by the County in the same manner as for property taxes. Assessments are collectible over a term of years, generally consistent with the term of years of the related bond issue. Property owners are allowed to and often do prepay future installments without interest or prepayment penalty. The City recognizes special assessment revenue when it becomes both measurable and available to finance bonded debt. Special assessment principal and interest is recognized as revenue in the year of collection. 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. Unpaid special assessments are reflected in the balance sheets at December 31, subject to a 100% deferral of revenue. 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 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 asset group of accounts except for certain improvements (roads, bridges, curbs, gutters, streets, sidewalks, drainage systems 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 1/1/88 Additions Deletions 12/31/88 Land $100,546 $100,546 Buildings and structures 567,102 $9,541 576,643 Machinery and equipment 225,299 17,207 $10,697 231,809 Furniture and fixtures 23,684 3.093 26,777 Totals $916,631 $29,841 $10,697 $935,775 CITY OF OAK PARK HEIGHTS, MINNESOTA Page 7 of 17 NOTES TO FINANCIAL STATEMENTS December 31, 1988 NOTE 2 DETAIL NOTES ON ALL FTWD AND ACCOUNT GROTJPS, (continued) PROPRIETARY FUNDS Fixed assets of the proprietary funds (Water and Sewer) are stated at cost, estimated cost, or in the case of contributions, at fair market value at the time received. Depreciation has been provided using the straight -line method over the estimated useful lives of assets, as follows: Depreciation _ Assets Depreciable Lives 1988 1987 Purchased assets: Water 5 - 50 years $7,467 $7,429 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 $51,320 $51,282 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 contributions to the sewer and water operating funds. City policy is to finance these assets by the sources indicated rather than by user charges. Accordingly, the water and sewer user rates are not established at levels sufficient to cover depreciation on these assets. Depreciation on these assets is shown in the operating statements; however, the depreciation is eventually transferred against the contribution account rather than retained earnings in accordance with generally accepted accounting principles. Consequently, the contribution account reflects the net book value of contributed assets rather than the original cost of such assets. A summary of proprietary fund assets at December 31, 1988 is as follows: Buildings and structures $504,040 Machinery and equipment 61,591 Water and sewer lines 2,062,834 Total 2,628,465 Less: Accumulated depreciation (719,445) Net fixed assets $1,909,020 INTERFUND RECEIVABLES /PAYABLES As of December 31, 1988 the City had interfund receivable and payables totalling $22,946. All such interfund receivables and payables consist of year -end closing adjustments to the accounting records of the City and are planned to be eliminated in 1989. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 8 of 17 NOTES TO FINANCIAL STATEMENTS December 31, 1988 NOTE 2 - DETAIL NOTES ON ALL FTJND AND ACCOUNT GROUPS_ (continued) CITY INDEBTEDNESS The following is a schedule of changes in City indebtedness for the year ended December 31, 1988: Special Assessment Debt With General Revenue Governmental Obligation Bonds Commitment Total Bondspayable - January 1, 1988 $185,000 $125,000 $1,193,000 $1,503,000 Bonds retired in 1988 (5,000) (15,000) (34,000) (54,000) Bonds payable - December 31, 1988 $180,000 $110,000 $1,159,000 $1,449,000 All bond issues outstanding at December 31, 1988 are backed by the full faith and credit of the City, including special assessment bond issues. Outstanding balances at December 31,1988, principal and interest payments due in 1989, final due dates, interest rates, and other pertinent data are presented in the Combined Schedule of Indebtedness (Exhibit 1). Principal and interest payments through maturity are presented in Exhibits 2 and 3. The financial transactions of the escrow account are not presented in the financial statements. A summary of the 1988 activity, however, is presented in Exhibits 8, 9 and 10 of the Supplementary Financial Information Section. The annual requirement to amortize all bonded debt outstanding at December 31, 1988 including interest payments of $417,921 are as follows: Special Assessment General Debt With Year Ending Obligation Governmental Proprietary December 31, Bonds Commitment Fund Types Total 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 24,377 237,700 23,400 285,477 1994 -2003 210,458 21,700 232,158 Total $341,770 $1,380,989 $144,162 $1,866,921 CITY OF OAK PARK HEIGHTS, MINNESOTA Page 9 of 17 NOTES TO FINANCIAL STATEMENTS December 31, 1988 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS, (continued) The amount to be provided in the General Long -Term Debt Group of Accounts represents future tax levies and special assessments for the retirement of bonds payable. Total scheduled deferred tax levies to retire general long -term debt bonds are $412,883. City indebtedness at December 31, 1988 is composed of the following: Final Net Payment Interest Authorized Outstanding Date Due Rate and Issued At 12/31/88 Bonded Indebtedness: General Debt:Special Assessment Bonds: Storm Sewer Bonds of 1982 12/01/82 1211/03 10.12 96 $205,000 $180,000 Special Assessment Bonds with Governmental Commitment: General Obligation Storm Sewer Improvement Bonds of 1971 5 101M 5/01/91 4.60 173,000 30,000 General Obligation Improvement Bonds of 1982 8/01/82 8/01/93 10.75 165,000 90,000 General Obligation Improvement Bonds of 1983 12/15183 2/01/93 8.60 80,000 44,000 General Obligation Improvement Bonds of 1987 7/01/87 12101/93 5.97 995,000 995,000 Total Special Assessment Bonds With Governmental Commitment 1,413,000 1,159,000 Revenue Bonds: General Obligation Water and Sewer Bonds of 1980 10/01/80 10/01/94 7.50 200,000 110,000 Total Indebtedness $1,818,000 $1,449,000 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. DEFEASANCE OF DEBT In prior years, the City defeased certain general obligation and other bonds through an advance refunding by placing the proceeds of the new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, trust account assets and the related liability for the defeased bonds are not included in the City's financial statements. At December 31, 1988, the $900,000 General Obligation Water and Sanitary Sewer Improvement Bonds of 1967 and the 5500,000 General Obligation Water and Sanitary Sewer Improvement Bonds of 1968 are considered defeased. The remaining principal of the outstanding bonds at December 31, 1988 is as follows: Issue Amount $900,000 General Obligation Water and Sanitary Sewer Improvement Bonds of 1967 $ 340,000 $500,000 General Obligation Water and Sanitary Sewer Improvement Bonds of 1968 250.000 Total $ 590,000 CITY OF OAK PARK HEIGHTS, MINNESOTA Page 10 of 17 NOTES TO FINANCIAL STATEMENTS December 31, 1988 NOTE 2 m 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 taxes (MS 475.53). The City of Oak Park Height's legal debt margin for 1988 and 1987 is computed as follows: December 31, 1988 1987 Functional Value: Market value $185,913,700 Assessed value (after fiscal disparities and tax increment captured values) $52,969,221 Applicable Debt Limit (percentage) 2.00% 7.33% Debt Limit 3 ,718,274 3, 882,644 Amount of Debt Applicable to Debt Limit: Total bonded debt 1,449,000 1,503,000 Less: Non - applicable debt: Special Assessment Bonds (1,159,000) (1,193,000) Revenue Bonds (110,000) (125,000) Cash and investments in corresponding Debt Service Funds (7,608) (6,499) Total Amount of Debt Applicable to Debt Limit 172,392 178,501 Legal Debt Margin $3,545,882 $3,704,143 Legal debt margin is calculated on general obligation bond issues only (i.e., this does not include General Obligation Debt with special assessments pledged for payment or Revenue/Enterprise Fund bonded debt). DEFERRED REVENUE Deferred revenue at December 31, 1988 consisted of the following amounts: Property taxes receivable: Delinquent S 21,293 Special assessments receivable: Delinquent 12,409 Deferred 717,569 Special deferred 14.800 Total S 766,071 CITY OF OAK PARK HEIGHTS, MINNESOTA Page 11 of 17 NOTES TO FINANCIAL STATEMENTS December 31, 1988 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS, (continued) RETIREMENT MULTIPLE EMPLOYER PERS 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 Chapters 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 $400,286 and $373,295 respectively. A summary of plan eligibility requirements is available at PERA. Such retirement 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 retirement 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 formulas: BASIC MEMBERS - 2% of the average salary over the highest five successive years on which deductions were paid for each of the first 10 years and 2 -1/2% of said "average salary" for the period thereafter. COORDINATED MEMBERS - 1% of the average salary over the highest five successive 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 employee 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. Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. The City makes annual contributions to the pension plans equal to the amount required by state statutes. Minnesota Statutes Chapter 356.215, subd 4(g) provides the formula for determining the date of full funding for the Public Employees Retirement Fund and the Public Employees Police and Fire Fund. Those dates are 2010 and 2018 respectively. As part of the annual actuarial valuation, PERA's actuary determines the sufficiency of the statutory contribution rates towards meeting the required full funding deadline. The actuary compares the actual contribution rate to a "required" contribution rate. Current statutory contribution rates and actuarially required contribution rates for the plans are as follows: CITY OF OAK PARK HEIGHTS, MINNESOTA Page 12 of 17 NOTES TO FINANCIAL STATEMENTS December 31, 1988 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOiJNT GROi1PS (continued) Statutory Rates Required Emplovees Emnlover Rates Public Employees Retirement Fund: Basic Plan 8% 10 -1/2% 9.46% Coordinated Plan 4% 4 -1/4% 5.11% Public Employees Police and Fire Fund 8% 12% 15.97% 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 $33,220 (8.90% of current covered payroll) and employee contributions of $23,889 (6.39% of current year covered payroll). 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 present 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 accumulating 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, 1988, were as follows: Public Public Employees Employees Police Retirement Fund and Fire Fund Total pension benefit obligation $ 3,334,423,000 $ 512,921,000 Net assets available for benefits, at market 2.749.289.000 584.871.000 Unfunded (assets in excess of) pension benefit obligation $ 585,134,000 $ (71,950,000) PERA does not make separate measurements for individual employers. The City of Oak Park Heights made employer contributions totaling $33,066 which represent .0336% of total contributions of all employers participating in the system (598,218,000) for the year ended June 30, 1988. The City's contributions were made by the required due dates. Prior to fiscal year 1988, the mortality table used was the UP -1984 Unisex set forward one year for males and set back four years for females. For fiscal year 1988, the PERA Board of Trustees approved the use of the 1971 Group Annuity Mortality Table projected to 1984 for males and females. The change was made in order to reduce, if not eliminate, the series of large, annually recurring mortality losses that have been realized in the last four years. With the adoption of the new mortality table, the projected benefit obligation increased $179,670,000 in the Public Employees Retirement Fund and $18,805,000 in the Public Employees Police and Fire Fund. 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 13 of 17 NOTES TO FINANCIAL STATEMENTS December 31, 1988 NOTE 2 m DETAIL NOTES ON ALL FUND AND ACCOUNT GROURa (continued) Ten -year historical trend information is available in the published comprehensive annual financial report of the Public Employees Retirement Association. During 1988 and as of June 30, 1988, PERA held no securities issued by the City or other related parties. The City made employer contributions of $11,216 to the Federal Social Security Retirement Plan. DESIGNATIONS AND RESERVATIONS OF FUND EQUITY Major fund equity designations at December 31, 1988 and 1987 are as follows: December 31, 1988 1987 General Fund: Designated for cash flow $531,700 $499,260 Designated for contingent employee benefits 79,400 98,912 General contingency designation 160,400 153,161 Designated for ensuing year's budget 3,468 Debt Service Funds: Reserved for debt service 500,064 383,354 Capital Project Funds: Designated for capital improvements 1 ,268,163 1,142,234 Totals $2,543,195 $2,276,921 DEFICIT FUND BALANCES The following fund had a deficit at December 31, 1988: Amount Capital Project: River Hills Utility and Street Improvements S 5,833 The deficit of this fund is scheduled to be funded from bond proceeds or by a direct charge to a developer. NOTE 3 - COMBINE12 NANO A , 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 introduction to the more detailed statements which follow. The reader is cautioned that these combined statements have been condensed for presentation purposes and that certain disclosures contained in the combining fund and account group financial statements may not be disclosed in the combined financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 14 of 17 NOTES TO FINANCIAL STATEMENTS December 31, 1988 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 combining of unlike purpose funds and cannot be construed to be indicative of the overall financial position of the City. (2) Prior year "Total' columns likewise may combine unlike purpose funds (as in 1 above) and additionally do not present detail components by fund group (as is presented for current year totals) and therefore, are incomplete presentations of prior year statements of financial position, results of operations and changes in financial position of the various funds of the City as established by generally accepted accounting principles. (3) 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 m D-EEERR TAX LEYM General obligation bonded debt of all Minnesota cities is issued in accordance with State Statutes. When a bond issue to be financed by an ad valorem tax levy 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 financing. Alternatively, the City Council is required to levy any additional taxes found necessary for the full payment of principal and interest. These future scheduled tax levies are not shown as assets in the accompanying financial statements 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 the general obligation debt with special assessments pledged were and are scheduled to be as follows: CITY OF OAK PARK HEIGHTS, MINNESOTA Page 15 of 17 NOTES TO FINANCIAL STATEMENTS December 31, 1988 NOTE 5 -.DEFERRED TAX LEVIES (continued) Levy /Collection Scheduled Actual Percent 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 55.20% 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 18,000 94.74% 1988/89 19,000 18,000 94.74% 1989/90 20,000 1990/91 8,000 1991/92 8,000 NOTE 6 SPECIA TAXIN(: DISTRICT The City Council of Oak Park Heights established Storm Sewer Improvement Tax District No. I 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 provided 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 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. NOTE 7 A 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. 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 16 of 17 NOTES TO FINANCIAL STATEMENTS December 31, 1988 NOTE 7 - METROPOLITAN WASTE CONTROL COMMISSION (continued) 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 succeeding calender year and payable by the City, in the second succeeding calendar 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, 1988 and 1987 were as follows: December 31, 1988 1987 Current value credits $468 $507 Debt service credits 119,108 132,565 Deferred charges 3,091 4,497 Total $122,667 $137,569 NOTE 8 - COMPEN. ATFD A,BSENCF,S The accrued liability for compensated absences is recorded as a liability in the General Long -Term Debt Group of Accounts (for governmental funds) and the Proprietary Funds. Unused vacation, the portion of sick leave payable as severance pay, and the compensatory time 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 1988 1987 Vacation $2,110 $2,110 $2,049 Severence 31,389 31,389 28,293 Total 533,499 $0 $33,499 $30,342 The City also has an unrecorded contingent liability for unused employee sick leave of $77,263 and $68,570 at December 31, 1988 and 1987 respectively. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 17 of 17 NOTES TO FINANCIAL STATEMENTS December 31, 1988 NOTE 9 - SEGMENT INFORMATION The City maintains one Enterprise Fund which provides water and sewer services. Segment information for the year ended December 31, 1988 is as follows: Water Sewer Operating Revenue $ 124,429 $ 170,896 Operating Expenses before Depreciation 56,380 140,180 Depreciation 28,537 22,783 Operating Income 39,512 7,933 NOTE 10 - 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 judgement of the City attorney, remotely recoverable by plaintiffs. NOTE 11 - ST__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. COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUT' FINANCIAL STATEMENTS CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 6 GENERAL FUND BALANCE SHEET December 31, 1988 December 31, Assets 1988 1987 Cash and investments $911,344 $803,783 Accounts receivable 2,435 12 Due from other governmental units 2,417 1,838 Due from other funds 18,000 31,525 Accounts receivable o certified 5,598 5,598 Taxes receivable: Delinquent 20,201 27,282 Due from county 1,143 Total assets $961,138 $870,038 Liabilities and fund balance Liabilities: Accounts payable $64,705 556,663 Salaries payable 4,352 1,852 Due to other governmental units 1,175 868 Due to other funds 602 Deferred revenue 20,201 27,282 Total liabilities 90,433 87,267 Fund Balance: Unreserved: Designated for cash flow 531,700 499,260 Designated for contingent employee benefit 79,400 98,912 Designated for general contingency 160,400 153,161 Designated for ensuing years' budget 3,468 Undesignated 95,737 31,438 Total fund balance 870,705 782,771 Total liabilities and fund balance $961,138 5870,038 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 7 GENERAL FUND Page 1 of 4 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1988 1988 Over (under) 1987 Budget Actual Budget Actual (Memorandum only) Revenue: General property taxes: Current and delinquent $803,944 $681,038 Other 497 598 Total general property taxes $810,30 5804,441 (55,864) 681,636 Intergovernmental: S tate: Homestead credit 67,760 67,760 59,636 Small business credit 2,935 2,935 Local government aid 99,520 99,521 1 99,522 Police aid 17,000 23,856 6,856 21,161 Other 500 (500) Surcharge rebate 2,875 Total state 187,715 194,072 6,357 183,194 County: Gravel tax allocation 481 481 1,215 Total intergovernmental 187,715 194,553 6,838 184,409 Licenses and permits 20,000 R 22,682 2,682 18,882 Charges for services: Refuse collection 8,000 7,947 (53) Other 2,500 4,255 1,755 3,993 Administrative - Enterprise Fund 36,250 36,250 31,500 Total charges for services 46,750 48,452 1,702 35,493 Fines and forfeits 30,600 27,788 (2,812) 31,809 Interest on investments 32,500 45,043 12,543 37,686 Refunds and reimbursements 6,066 6,066 5,490 Sale of property 459 459 275 Donations 200 1,166 966 75 Total revenue 1,128,070 1,150,650 22,580 995,755 Expenditures: General government: Mayor and council: Current: Personal services 22,100 33,301 11,201 28,752 Contractual services 70,030 63,485 (6,545) 63,510 Total mayor and council $92,130 $96,786 $4,656 $92,262 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 7 GENERAL FUND Page 2 of 4 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1988 1988 Over (under) 1987 Budget Actual Budget Actual Expenditures: (continued) (Memorandum General government: (continued) only) Elections: Current: Personal services $2,200 $998 (51,202) Materials and supplies 150 220 70 Total elections 2,350 1,218 (1,132) SO City clerk: Current Personal services 80,500 77,431 (3,069) 74,117 Materials and supplies 3,700 3,366 (334) 2,111 Contractual services 3,600 3,004_ (596) 3,889 Total current 87,800 83,801 (3,999) 80,117 Capital outlay 550 Total city clerk 87,800 83,801 (3,999) 80,667 Planning and zoning: Current: Contractual services 1,500 19,969 18,469 1,211 City hall: Current: Materials and supplies 3,850 3,384 (466) 3,216 Contractual services 9,950 8,520 (1,430) 5,998 Total current 13,800 11,904 (1,896) 9,214 Capital outlay 1,700 1,763 63 3,498 Total city hall 15,500 13,667 (1,833) 12,712 Assessor: Current: Personal services 6,260 6,720 460 6,410 Engineering: Current: Contractual services 3,000 2,730 (270) 1,163 General management: Current: Personal services 8,000 16,229 8,229 9,519 Materials and supplies 2,100 1,762 (338) 641 Contractual services 10,600 16,095 5,495 5,319 Total general management 20,700 34,086 13,386 15,479 Total general government $229,240 5258,977 $29,737 $209,904 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 7 GENERAL FUND Page 3 of 4 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ® BUDGET AND ACTUAL For The Year Ended December 31, 1988 1988 Over (under) 1987 Budget Actual Budget Actual Expenditures: (continued) (Memorandum Public safety: only) Police department: Current: Personal services $316,900 $307,867 ($9,033) $264,054 Materials and supplies 20,100 17,341 (2,759) 12,033 Contractual services 15,000 12,063 (2,937) 32,317 Total current 352,000 337,271 (14,729) 308,404 Capital outlay 18,000 17,47 ..(5 3,137 Total police department 370,000 ® 354,744 (15,256) 311,541 Fire protection: Current: Contractual services 15,000 16,071 1,071 14,710 Total fire protection 15,0 16,071 1,071 14,710 Animal control: Current: Materials and supplies 68 68 51 Contractual services 6,500 4,774 (1,726) 4,215 Total animal control 6,500 4,842 (1,658) 4,266 Total public safety 391,500 m 375,657 (15,843) 330,517 Streets and highways: Streets and alleys: Current: Materials and supplies 800 425 (375) 159 Contractual services 15,000 16,792 1,792 14,785 Total streets and alleys 15,800 17,217 1,417 14,944 Snow and ice removal: Current: Materials and supplies 3,861 3,861 Contractual services 25,000 15,934 (9,066) 9,711 Total snow and ice removal 25,000 19,795 (5,205) 9,711 Street lighting: Current: Contractual services 36,000 34,212 (1,788) 30,555 Arboreous: Current: Personal services 942 942 308 Materials and supplies 25 25 14 Contractual services 30 30 23 Total arboreous 997 997 0 345 Total streets and highways 577,797 $72,221 ($5,576) $55,555 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 7 GENERAL FUND Page 4 of 4 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1988 1988 Over (under) 1987 Budget Actual Budget Actual Expenditures: (continued) (Memorandum Sanitation: only) Refuse collection and disposal: Current: Contractual services $172,700 $129,000 ($43,700) $111,041 Tree removal and planting: Current: Contractual services 9,000 14,567 5,567 13,678 Total sanitation 181,700 143,567 (38,133) 124,719 Recreation: Parks, playgrounds and rinks: Current: Personal services 102,100 94,778 (7,322) 84,724 Materials and supplies 5,150 4,800 (350) 2,818 Contractual services 8,900 4,651 (4,249) 5,289 Total current 116,150 104,229 (11,921) 92,831 Capital outlay 1,065 1,065 2,113 Total recreation 116,150 105,294 (10,856) 94,944 Contingency: Current: Contractual services 24,683 (24,683) Total expenditures 1,021,070 ® 955,716 (65,354) 815,639 Revenue over expenditures 107,000 194,934 87,934 180,116 Other increases (decreases): Operating transfer to Capital Project Fund (107,000) (107,000) (100,000) Total other increases ( decreases) (107,000) _ (107,000) 0 (100,000) Net increase in fund balance $0 87,934 $87,934 80,116 Fund balance - January 1 782,771 692,520 Residual equity transfer: From Special Revenue Fund 1,767 From Capital Project Fund 10,173 To Capital Project Fund (1,805) Fund balance - December 31 $870,705 $782,771 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, 1988 G.O. Storm sewer Improvement Storm Sewer Bonds of 1971 Bonds of 1982 Assets Cash and investments $40,355 $7,608 Taxes receivable: Delinquent 181 577 Due from county 8 32 Due from other funds 128 Special assessments: Delinquent Deferred 690 Special deferred Due from county Total assets $41,362 $8,217 Liabilities and Fund Balance Liabilities: Due to other governments $109 Due to other funds 6,204 Deferred revenue 871 5577 Total liabilities 7,184 577 Fund Balance: Reserved for debt service 34,178 7,640 Total liabilities and fund balance $41,362 $8,217 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 8 $165,000 G.O. Totals Improvement $80,000 G.O. Improvement December 31, Bonds of 1982 Bonds of 1983 Bonds of 1987 1988 1987 $71,047 $41,511 $361,187 $521,708 $382,273 312 22 1,092 2,163 16 56 699 324 1,151 884 7,564 7,564 5,835 1 1,700 1 1,728 618,203 642,321 32,002 14,800 14,800 14,800 0 2,024 $98,574 $61,149 $979,390 S1,188,692 $439,981 $109 $12,000 $4,538 22,742 $1,827 26,812 19,314 $618,203 665,777 54,800 38,812 23,852 618,203 688,628 0 56,627 59,762 37,297 361,187 500,064 383,354 $98,574 $61,149 $979,390 51,188,692 $439,981 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, 1988 G.O. Storm Sewer Improvement Storm Sewer Bonds of 1971 Bonds of 1982 Revenue: General property taxes: Current and delinquent $5,549 Stone Sewer ad valorem taxes: Current $22,652 Special assessments: Current and delinquent 304 Prepayments Penalties and interest Total special assessments 304 0 Intergovernmental: S tate: Homestead credit 462 1,904 Small business credit 20 83 Total intergovernmental 482 1,987 Interest on investments 2,680 452 Total revenue 9,015 25,091 Expenditures: Debt service: Principal 10,000 5,000 Interest 1,995 18,553 Paying agent fees 229 342 Total Expenditures 12,224 23, Revenue over (under) expenditures (3,209) 1,196 Other financing sources (uses): Bond proceeds Net increase (decrease) in fund balance (3,209) 1,196 Fund balance - January 1 37,387 6,444 Fund balance - December 31 $34,178 $7,640 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 9 $165,000 G.O. Totals Improvement $80,000 G.O. Improvement December 31, Bonds of 1982 Bonds of 1983 Bonds of 1987 1988 1987 $11,028 $29 $16,606 $20,912 22,652 23,117 4,988 1,730 7,022 15,508 2,800 $167,569 170,369 148,545 221 7,788 1,730 167,569 177,391 164,274 924 3,290 3,814 40 143 964 0 0 3,433 3,814 4,518 2,763 ___ 21,750 32,163 _ 15,189 24,298 4,522 189,319 252,245 227,306 15,000 9,000 39,000 39,000 11,450 4,253 58,892 95,143 64,113 329 492 1,392 597 _ m 26,779 ® 13,253 59,384 135,535 103,710 (2,481) (8,731) 129,935 116,710 123,596 120,561 (2,481) (8,731) 129,935 116,710 244,157 62,243 46,028 231,252 383,354 139,197 $59,762 $37,297 $361,187 $500,064 $383,354 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGH'T'S, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1988 Closed Capital Assets Bond Fund Improvements Cash and investments $873,258 $245,069 Due from other funds 678 Taxes receivable: Delinquent Due from County 78 Special assessments receivable: Delinquent 4,119 Deferred 53,549 Total assets $931,682 $245,069 Liabilities and fund balance Liabilities: Accounts payable Contracts payable Due to other funds S14 Deferred revenue 57,669 _ Total liabilities 57,683 $0 Fund balance (deficit): Unreserved: Designated for committed contracts Designated for capital improvements 873,999 245,069 Total fund balance 873,999 245,069 Total liabilities and fund balance $931,682 $245,069 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MII;NESO?A Statement 10 Swugor's River Hills Totals Completed Vdb Utility and Street December 3l, Construction <JbUtiox vomoo� 1988 1087 � ' S69,039 $124 $1,312,117 $1257,805 2.980 3.658 1,432 196 78 725 4 4,946 21.699~ _ 75,248_ _ 93,115 $94,443 $124,751 $0 $1,395,045 $1 $12 $125 $5.833 $5,970 $11,348 41.631 41.621 105,635 84 98 20 22,424 _ 80.093, 98,257 _ 22.520 41J46 _5,833 _ 127.782 215,260 108,577 71.923 83,005 _ (5.833) 1268,163 1.089,657 71,929 83,005 _ (5,933) _ 1,268.163 1,142234 $94,443 $124,751 $0 S1,395,945 $1,957/404 The accompanying notes are uo integral part ofthese 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, 1988 Closed Capital Bond Fund Improvements Revenue: General property taxes: Current and delinquent $149 Special assessments: Current and delinquent 13,867 Prepayments 2,080 Penalties and interest Total special assessments 15,947 Interest on investments 63,545 $16,220 Connection charges 19,210 Total revenue 98,851 16,220 Expenditures: Professional services 1,446 Construction costs 20,643 Capital outlay 9,541 Total expenditures 1,446 30,184 Revenue over (under) expenditures 97,405 _ (13,964) Other increases (decreases): Operating transfer from General Fund 107,000 Bond proceeds Total other increases (decreases) 0 107,000 Net increase (decrease) in fund balance 97,405 93,036 Fund balance (deficit) - January 1 776,594 152,033 Residual equity transfer: From General Fund To General Fund Fund balance - December 31 $873,999 $245,069 The accompanying notes are an integral part of these financial statements CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 11 Swager's River Hills Totals Completed 9th Utility and Street December 31, Construction Utilities Improvement 1988 1987 ® (Memorandum Only) $149 5638 57,714 21,581 24,670 1,946 4,026 6,404 374 9,660 25,607 31,448 4,702 $12,358 96,825 74,814 19,210 _ 8,087 14,362 12,358 $0 141,791 114,987 1,446 1,573 4,290 81,109 5,833 111,875 791,556 9,541 65,056 4,290 81,109 5,833 122,862 858,185 10,072 (68,751) (5,833) 18,929 (743,198) 107,000 100,000 862,626 0 0 - 0 107,000 _ 962,626 10,072 (68,751) (5,833) 125,929 219,428 61,851 151,756 0 1,142,234 931,174 1,805 (10,173) $71,923 $83,005 ($5,833) $1,268,163 $1,142,234 The accompanying notes are an integral part of these financial statements CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 12 ENTERPRISE FUND BALANCE SHEET December 31, 1988 December 31, Assets _ 1988 1987 (Memorandum Current assets: Only) Cash and investments $661,765 $557,162 Due from other funds 137 108 Accounts receivable: Customers 69,494 69,062 Certified to county 1,109 1,072 Other 2,750 Prepaid MWCC 9,370 7,115 Due from other governmental units 12,750 Total current assets 741,875 650,019 Utility plant in service - at cost: Buildings and structures 504,040 504,040 Machinery and equipment 61,591 53,848 Distribution and collection system 2,062,834 2,062,834 Total 2,628,465 2,620,722 Less: Allowance for depreciation _______(719,445) (668,125) Net fixed assets 1,909,020 1,952,597 Total assets $2,650,895 $2,602,616 Liabilities and fund equity Current Liabilities: Accounts payable $1,859 $2,268 Due to other governmental units 4,571 340 Due to other funds 106 31,500 Accrued interest 2,306 2,606 Meter deposits 61,053 57,237 Bonds payable 15,000 15,000 Total current liabilities 84,895 108,951 Noncurrent liabilities: Bonds payable 95,000 110,000 Total liabilities _ 179,895 218,951 Fund equity: Contributions from property owners - net 1,685,244 1,727,079 Retained earnings: Undesignated 785,756 656,586 Total fund equity 2,471,000 2,383,665 Total liabilities and fund equity $2,650,895 $2,602,616 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 13 ENTERPRISE FUND STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1988 Totals Water Sewer December 31, Operating Operating 1988 1987 (Memorandum Revenue: Only) Customer billings $123,192 $169,214 $292,406 $274,807 Penalties 1,237 1,682 2,919 3,293 Total operating revenue 124,429 170,896 295,325 278,100 Expenses: Contractual services 28,020 19,468 47,488 43,376 MWCC charges 101,837 101,837 82,469 Materials and supplies 10,235 750 10,985 12,827 Administrative and personnel charge 18,125 18,125 36,250 31,500 Depreciation: On purchased assets 7,467 2,018 9,485 9,447 On contributed assets 21,070 20,765 41,835 41,835 Total operating expenses 84,917 162,963 247,880 221,454 Operating income $39,512 $7,933 47,445 56,646 Other income (expense): Interest on investments 45,331 32,059 Plumbing permits 510 384 Refunds and reimbursements 2,653 4,849 Charges for services 1,625 1,303 Bond interest (10,125) (11,325) Paying agent fees (104) (104) Total other income 39,890 _ 27,166 Net income 87,335 83,812 Other increases (decreases): Credit arising from transfer of depreciation to Contributions from property owners 41,835 41,835 Net increase in retained earnings 129,170 125,647 Retained earnings - January 1 656,586 530,939 Retained earnings - December 31 $785,756 $656,586 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 14 ENTERPRISE FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1988 December 31, 1988 1987 (Memorandum Only) Cash Flows from Operating Activities: Net income $87,335 $83,812 Noncash expenses (revenues) included in net income: Depreciation 51,320 51,282 (Increase) decrease in receivable 12,747 (24,042) Increase (decrease) in payables (24,056) 31,141 Net cash provided by operating activities 127,346 142,193 Cash Flows From Investing Activities: Purchase of equipment (7,743) Cash flows from financing activities Debt reduction - long -term (15,000) (15,000) Net increase in cash $104,603 $127,193 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 15 TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET December 31, 1988 Developers Totals Deposit Investment December 31, Fund Fund 1988 1987 Assets (Memorandum Only) Cash $36 Accrued interest receivable $47,765 $47,765 20,533 Accounts receivable $130 130 317 Due from developers 1,798 1, 475 Total assets $1,928 $47,765 $49,693 $21,361 Liabilities Cash overdraft $904 $47,765 $48,669 $20,533 Accounts payable 545 545 78 Due to developers 479 479 750 Total liabilities $1,928 $47,765 $49,693 $21,361 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 16 TRUST AND AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For The Year Ended December 31, 1988 Balance Balance January 1, December 31, 1988 Additions Deletions 1988 Developers' Deposits Fund: Assets Cash $36 $7,026 $7,966 ($904) Accounts receivable 317 187 130 Due from developers 475 1,982 659 1,798 Total assets $828 $9,008 $8,812 $1,024 Liabilities Accounts payable $78 $545 $78 $545 Due to developers 750 244 515 479 Total liabilities $828 $789 $593 $1,024 Investment Fund: Assets Accrued interest $20,533 $57,162 $29,930 $47,765 Liabilities Cash overdraft $20,533 $29,179,072 $29,151,840 $47,765 Total Agency: Assets Cash $36 $7,026 $7,966 ($904) Accrued interest receivable 20,533 57,162 29,930 47,765 Due from developers 475 1,982 659 1,798 Due from county 317 0 187 130 Total assets $21,361 $66,170 $38,742 $48,789 Liabilities Cash overdraft $20,533 $29,179,072 $29,151,840 $47,765 Accounts payable 78 545 78 545 Due to developers _ 750 244 515 479 Total liabilities $21,361 $29,179,861 $29,152,433 $48,789 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 17 STATEMENT OF GENERAL FIXED ASSETS December 31, 1988 (UNAUDITED) Balance Balance January 1, December 31, Description 1988 Additions Deletions 1988 Land $50,625 $50,625 Land improvements 49,921 49,921 Buildings and structures 567,102 $9,541 576,643 Machinery and equipment 225,299 17,207 $10,697 231,809 Furniture and fixtures 23,684 3,093 26,777 Totals $916,631 $29,841 $10,697 $935,775 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 18 STATEMENT OF GENERAL LONG - TERM DEBT December 31, 1988 December 31, 1988 1987 Amount Available And To Be Provided For The (Memorandum Retirement of Long -Term Debt Only) Bonds: Amount available in debt service funds $500,064 $383,354 Amount to be provided from future tax levies/ special assessment collections 838,936 994,646 Compensated absences: Amount to be provided 33,499 30,342 Total available and to be provided $1,372,499 $1,408,342 General Long -Term Debt Pav Bonds payable: General Obligation Bonds: Storm Sewer Bonds $180,000 $185,000 Special Assessment Bonds with Governmental Commitment: G.O. Storm Sewer Improvement Bonds of 1971 30,000 40,000 G.O. Improvement Bonds of 1982 90,000 105,000 G.O. Improvement Bonds of 1983 44,000 53,000 G.O. Improvement Bonds of 1987 995,000 995,000 Compensated absenses payable 33,499 30,342 Total general long -term debt payable $1,372,499 $1,408,342 The accompanying notes are an integral part of these financial statements. SUPPLEMENTARY FINANCIAL INF0RMATI ®N CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS December 31, 1988 Final Net Payment Interest Dared Due Rate Bonded Indebtedness Special Assessment Bonds with governmental commitment: General Obligation Storm Sewer Improvement Bonds of 1971 5/1/71 5/1/91 4.60% General Obligation Improvement Bonds of 1982 8/1/82 8/1/93 10.75% General Obligation Improvement Bonds of 1983 12/15/83 2/1/93 8.60% General Obligation Improvement Bonds of 1987 7/1/87 12/1/93 5.97% Total special assessment bonds with governmental commitment General Debt: Storm Sewer Bonds of 1982 12/1/82 12/1/03 10.12% Revenue Bonds: General Obligation Water and Sewer Bonds of 1980 10/1/80 10/1/94 7.50% Total Indebtedness CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 1 Bonds Principal Interest Authorized Retired Outstanding Due Due And Issued a To Date At 12/3188 In 1989 In 1989 $173,000 $143,000 $30,000 $10,000 $1,425 165,000 75,000 90,000 15,000 9,875 80,000 36,000 44,000 9,000 3,483 995,000 0 995,000 200,000 58,890 1,413,000 254,000 1, 159,000 234,000 73,673 205,000 25,000 180,000 -- - 10,000 -1 18,103 200,000 90,000 110,000 15,000 9,225 $1,818,000 $369,000 $1,449,000 $259,000 $101,001 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 2 SPECIAL ASSESSMENT DEBT WITH GOVERNMENTAL COMNUTMENT SCHEDULE OF DEBT SERVICE PAYMENTS TO MA'T'URITY December 31,1988 G.O. $165,000 $80,000 $995,000 Storm Sewer G.O. G.O. G.O. Improvement Improvement Improvement Improvement Bonds Bones Total of 1971 of 1982 of 1983 of 1987 Bonds payable $30,000 $90,000 $44,000 $995,000 $1,159,000 Futute interest payable 2,565 31,288 9,586 178,350 221,789 Totals $32,565 $121,288 $53,586 $1,173,350 $1,380,789 Payments to maturity: $11,425 $24,875 $12,483 $258,890 $307,673 1989 11,705 247,390 293,213 10,855 23,263 283,742 1990 10,917 235,890 1991 10,285 26,650 224,090 258,461 24,250 10,121 1992 22,250 8,360 207,090 237,700 1993 Totals $32,565 $121,288 $53,586 $1,173,350 $1,380,789 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 3 REVENUE BONDS AND DEBT SERVICE BONDS SCHEDULE OF DEBT SERVICE PAYMENTS TO MATURITY December 31, 1988 Special Taxing District $205,000 Water And Sewer Storm Sewer Revenue Bond Bond of 1982 Bonds payable $110,000 $180,000 Futute interest payable 34,162 161,770 Totals $144,162 $341,770 Payments to maturity: 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 Totals $144,162 $341,770 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 4 SECURITIES FOR DEPOSIT December 31, 1988 Amount Description $1,786,084 U.S. T -Notes 1,631,281 Federal National Mortgage Association 1,482,493 Federal Home Loan Bank Bond $4,899,858 Total The above securities have been: Held By Amount Assigned By.: _ First State Bank of Bayport First Bank St. Paul $395,843 Cosmopolitan State Bank of Stillwater First Bank St. Paul 198,656 St, Croix Valley Bank Norwest Investment Services 1,224,181 First National Bank of Stillwater First Minneapolis 2,392,554 First National Bank of Stillwater First St. Paul 298,781 First National Bank of Stillwater Marquette 389,843 $4,899,858 Total CITY OF OAK PARK HEIGHTS, M NNESOTA Exhibit 5 INSURANCE IN FORCE December 31, 1988 Coverage Amount Umbrella Liability $1,000,000 Package: Property Blanket Building and Contents 1,558,100 Public Liability 600,000 Errors or omissions 600,000 Miscellaneous radio equipment 12,850 Contractors Equipment 34,976 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. Law Enforcement Liability ($2,500 deductible) 500,000 Worker's Compensation Statutory Public Employees Bond: Clerk - treasurer 50,000 Deputy Clerk - treasurer 50,000 Bond - Public Employees Blanket Bond 50,000 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 6 FUTURE SCHEDULED TAX LEVIES December 31, 1988 Special Special Assessment Bonds Taxing District Year Of Year of Bond Issue Storm Sewer Total Collection 1971 1982 Total Bonds of 1982 All Bonds 1989 $6,000 $12,000 $18,000 $29,508 $47,508 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 $18,000 $36,000 $54,000 $358,883 $412,883 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 7 TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Tax Capacity Value Assessed Values ® 1988/1989 1987/1988 19 86/1987 Taxable Valuations: Real estate $7,161,701 $53,623,632 $51,341,491 Personal property 114,560 920,587 873,803 Fiscal disparity: Contribution (452,863) (3,397,242) (2,752,913) Distribution 282,761 1,822,244 1,490,130 Total $7,106,159 $52,969,221 $50,952,511 Tax Levy: City Wide: General revenue 5961,740 $899,000 $745,000 Debt service 18,000 22,500 Total City Wide 979,740 899,000 767,500 Storm Sewer District: Storm Sewer Bonds of 1982 29,508 24,731 25,177 Total Tax Levy $1,009,248 $923,731 $792,677 Mill Rate: City Wide: General revenue 17.034 14.813 Debt service 0.449 Total City Wide 17.034 15.262 Storm Sewer District: Storm Sewer Bonds of 1982 0.701 0.461 Total Mill Rate 17.735 15.723 Gross Tax Capacity Rate: City Wide: General revenue 13.528 Debt service 0.253 Total City Wide 13.781 Storm Sewer District: Storm Sewer Bonds of 1982 0.629 Total Tax Capacity Rate 14.410 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 8 DEBT SERVICE ESCROW AGENT ACCOUNT BALANCESHEET December 31, 1988 First Trust St. Paul December 31, Assests 1988 1987 Cash $350 $18,331 Investments 296,897 343,182 Total cash and investments 297,247 361,513 Amount to be provided by future interest 292,753 283,487 Total assets $590,000 $645,000 Liabilities Liabilities: Bonds payable $590,000 r $645,000 Total liabilities $590,000 $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 a January 1, 1988 $283,487 Deductions: Interest received on investments 24,440 Additions: Payment to City of excess interest 2,626 Bond interest and paying agent fees 31,080 Amount to be provided m December 31, 1988 $292,753 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 1( DEBT SERVICE ESCROW AGENT ACCOUNT BONDS PAYABLE December 31, 1988 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 $340,000 $250,000 $590,000 Future interest payable 82,215 68,021 150,236 Totals $422,215 $318,021 $740,236 Year of maturity 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 81,9a 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 $422,215 $318,021 $740,236 STATISTICAL SECTION CITY OF OAK PARK HEGHTS, MINNESOTA Table 1 GENERAL AND SPECIAL REVENUE FUNDS EXPENDITURES BY FUNCTION Years 1979 Through 1988 (UNAUDITED) Streets General Public and Capital Year Total Government Safety Highways Sanitation Recreation Outlay 1979 $432,055 $139,328 $159,801 $63,754 $31,422 $37,750 1980 461,689 117,583 168,443 45,869 58,534 46,127 $25,133 1981 533,788 161,276 170,733 43,928 63,586 54,439 39,826 1982 534,910 134,061 189,877 48,442 58,362 74,355 29,813 1983 551,944 131,768 204,955 62,900 63,814 74,714 13,793 1984 606,763 154,095 227,844 60,414 74,652 79,938 9,820 1985 679,409 176,495 258,079 70,352 75,169 85,002 14,312 1986 771,847 206,642 286,424 53,558 97,266 94,351 33,606 1987 851,156 210,609 327,380 55,555 124,719 92,831 40,062 1988 955,716 257,214 358,184 72,221 143,567 104,229 20,301 CITY OF OAK PARK HEGHTS, MINNESOTA Table 2 GENERAL AND SPECIAL REVENUE FUNDS REVENUE BY SOURCE Years 1979 Through 1988 (UNAUDITED) Licenses Fines Charges Inter - and and Interest for Year Total Taxes governmental Permits Forfeits Income services Miscellaneous 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 1988 1,150,650 804,441 194,553 22,682 27,788 45,043 48,452 7,691 CITY OF OAK PARK HEGHTS, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Table 3 Years 1979 Through 1988 (UNAUDITED) Percent Total Of Collection Delinquent Current Delinquent Total as a Outstanding Percent of Taxes Total Current Tax Levy Tax Tax Percent Delinquent Current payable Tax Levy Collections Collected Collections Collections of Levy Taxes Levy 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% 1988 923,731 914,739 99.03% 160 914,899 99.04% 21,293 2.31% CITY OF OAK PARK HEGHTS, MINNESOTA Table 4 SPECIAL ASSESSMENT COLLECTIONS Years 1982 Through 1988 (UNAUDITED) Current Total Collections Collections As a Percent As a Percent Current Current Of Current Delinquent Of Current Outstanding Year Assessments Assessments Assessments Assessments Assessments Delinquent Payable Due Collected Due Collected 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% 6,210 102.24% 10,882 1987 40,260 38,170 94.81% 2,140 100.12% 10,781 1988 30,286 27,685 91.41% 918 94.44% 12,408