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HomeMy WebLinkAboutAnnual Financial Report CITY OF OAK PARK HEIGHTS, MINNESOTA ANNUAL DECEMBER 31, 1959 CITY OF OAK PARK HEIGHTS, MINNESOTA TABLE OF CONTENTS (Page 1 of 2) Organization Independent Auditor's Report n r 1 roose 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 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 Combining and Individual Fund and Account Group Financial Statement General Fund: Balance Sheet Statement 6 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Statement 7 Debt Service Funds: 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 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) &nnlementary 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 5 Taxable Valuations, Tax Levies and Tax Rates Exhibit 7 Debt Service Escrow Agent Accounts Balance Sheet Exhibit 8 Statement of Changes in Fund Balance Exhibit 9 Bonds Payable Exhibit 10 Schedule of Construction Costs Exhibit 11 Statistical Section General and Special Revenue Funds - Expenditures by Function - Years 1980 through 1989 Table I General and Special Revenue Funds - Revenue by Source - Years 1980 through 1989 Table 2 Property Tax Levies and Collections - Years 1980 through 1989 Table 3 Special Assessment Collections - Years 1982 through 1989 Table 4 CITY OF OAK PARK HEIGHTS, MINNESOTA ORGANIZATION December 31, 1989 Term Expire Mayor: Frank Sommerfeldt December 31, 1990 Council Members: Richard Seggelke December 31, 1990 Jack Doerr December 31, 1990 Barbara O'Neal December 31, 1992 Dean Kern Sr. December 31, 1992 Clerk - Treasurer: LaVonne Wilson Appointed w dl — I, il = 0 — - - I IIIII Ill kill, III - �� llIL..1ll.lJq loll .l, 9!1195 AI!ll l,.l. ,I,„ o: ��I. -- _ - _- IN a" -memo "IliminmEl am- WIM AM K P YI.I !ii uII11�DII111Vl ��LLI L i ..� ,.roll. I b _ h - N I _ I — I - II F - a n s — i I J 3 II ' e. I�s: �. ��uel�seeel. a�. uua�. u: I��aww, �I; wlweua .F,unulraelveus.n,usae.dlrma!, ���I iIII��.���.�lul ll����_r _ ,. I ,Re�.l�ue_�.�,., _�.,���•';;�_�.., nl,'�,.,u�.r _ _- _ _ �, - .- _, ®.- «�_..,.� -- _ _ - — 41141�I 19.11[�Ililidli�V�lliV�l,'�MV�' ' 61'IJII 1 1 i �'_'' d ll i �= �1u1�11 'I�IY IP` I'I II�WI "II :I�YiIIViu�III,I�IdJf lil,wl�lllll,! h' i�RYiail�t" "' _ -- _ - -- I i I� 'i�l�l i4 j �(il�l�° lldi'IIII�VVIIIIIVVII i�IFhyVI�IIII�IVI��I�VliI�IJ� GENERAL PURPOSE FINANCIAL STATEMENTS CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS DECEMBER 31, 1989 Governmental Fund Tvr)es Debt Capital Assets General Service Proiect Cash and investments $940,739 $525,204 $986,707 Accrued interest receivable Accounts receivable 10,195 Due from other funds 4,658 1,019 901 Due from other governmental units 3,912 Due from developers 2,746 Prepaid expenses Taxes receivable: Delinquent 29,480 1,352 Due from County 17,355 855 Special assessments receivable 400 460,397 73,250 Fixed assets (net of accumulated depreciation) Amount available in Debt Service Fund Amount to be provided for retirement of general long -term debt r Total Assets $1.006.739 $988,827 $1,063.604 Liabilities and Fund Equity Liabilities: Cash overdraft $2,746 Accounts payable $60,448 4,367 Salaries payable 4,356 Contracts payable 19,743 Accrued interest Due to other governmental units 1,825 Due to other funds $7,440 Deposits / refunds payable Compensated absences payable Bonds payable Deferred revenue 29.480 460.144 65.273 Total liabilities 96.109 467,584 92.129 Fund Equity: Invested in general fixed assets Contributions - net Retained earnings: Designated Undesignated Fund balance (deficit): Reserved for debt service 521,243 Unreserved: Designated 840,700 971,475 Undesignated 69,930 Total fund equity 910.630 521.243 971,475 Total liabilities and fund equity $1.006.739 $988.827 $1.063.604 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 1 Proprietary Fiduciary Totals Fund Tvpe Fund Tvpe ® Account Groups (Memorandum Only) General General Long- December 31. Enterprise Agencv ® Fixed Assets Term Debt 1989 1988 (unaudited) $778,373 $3,231,023 $3,406,934 $28,250 28,250 47,765 80,483 130 90,808 78,766 862 7,440 22,946 3,912 2,417 4,244 6,990 1,798 12,765 12,765 9,370 30,832 21,293 18,210 1,277 534,047 744,777 2,479,020 $1,042,966 3,521,986 2,844,795 $521,243 521,243 500,064 612,225 612,225 872,435 $3,351,503 $32,624 1,042,966 - $1,133,468 $8,619,731 $8.554,637 $31,399 $34,145 $48,669 $2,628 825 68,268 73,079 4,356 4,352 19,743 41,621 1,997 1,997 2,306 22,858 24,683 5,855 7,440 22,946 61,054 400 61,454 61,532 $38,468 38,468 33,499 95,000 1,095,000 1,190,000 1,449,000 554,897 766.071 183,537 32,624 $0 1,133,468 2,005.451 2,508,930 1,042,966 1,042,966 935,775 2,265,245 2,265,245 1,685,244 661,765 661,765 240,956 240,956 785,756 521,243 500,064 1,812,175 2,043,131 69,930 95,737 3,167.966 0 1,042,966 0 6,614,280 6,045.707 $3.351,503 $32,624 $1,042,966 $1,133,468 $8,619,731 $8.554.637 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, 1989 Totals (Memorandum Only) Debt Capital December 31, Revenue: General Service . _ Proie 1989 1988 General property taxes $868,420 $42,943 $911,363 $843,848 Intergovernmental 205,914 3,584 209,498 197,986 Licenses and permits 20,187 20,187 22,682 Fines and forfeits 36,776 36,776 27,788 Interest on investments 53,348 49,637 $117,173 220,158 174,031 Charges for services 67,334 67,334 48,452 Special assessments 4,451 262,584 20,519 287,554 202,998 Connection charges 16,443 16,443 19,210 Refunds and reimbursements 19,423 47,393 66,816 Donations and contributions 25 20,000 20,025 Other 3,000 3,000 7,691 Total revenue 1,278,878 358,748 221,528 1,859,154 1,544,686 Expenditures: Current: General government 255,945 42,607 298,552 258,660 Public safety 414,777 414,777 358,184 Streets and highways 78,654 78,654 72,221 Sanitation 185,484 185,484 143,567 Recreation 113,262 113,262 104,229 Capital outlay 62,931 62,931 27,314 Debt service: Principal 244,000 244,000 39,000 Interest 91,776 91,776 95,143 Paying agent fees 1,793 1,793 1,392 Construction costs 603,509 603,509 114,403 Total expenditures 1,111,053 337,569 646,116 2,094,738 1,214,113 Revenue over (under) expenditures 167,825 21,179 (424,588) (235,584) 330.573 Other increases (decreases): Operating transfers from other funds 22,100 350,000 372,100 107,000 Operating transfers to other funds (150,000) (222,100) (372,100) (107,000) Total other increases (decreases) (127,900) 0 127,900 0 0 Net increases (decreases) in fund balance 39,925 21,179 (296,688) (235,584) 330,573 Fund balance- January 1 870,705 500,064 1,268,163 2,638,932 2,308,359 Fund balance - December 31 $910,630 $521,243 $971,475 $2,403,348 $2,638,932 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, 1989 1989 Over (Under) 1988 Budget Actual Budget Actual (Memorandum Revenue: Only) General property taxes $889,242 $868,420 ($20,822) $804,441 Special assessments 4,451 4,451 Intergovernmental 197,618 205,914 8,296 194,553 Licenses and permits 18,445 20,187 1,742 22,682 Fines and forfeits 33,600 36,776 3,176 27,788 Interest on investments 37,000 53,348 16,348 45,043 Charges for current services 63,500 67,334 3,834 48,452 Other 200 22,448 22,248 7,691 Total revenue 1,239,605 1,278.878 39,273 1,150,650 Expenditures: Current: General government 293,590 255,945 (37,645) 257,214 Public safety 454,775 414,777 (39,998) 358,184 Streets and highways 90,450 78,654 (11,796) 72,221 Sanitation 180,500 185,484 4,984 143,567 Recreation 121,450 113,262 (8,188) 104,229 Contingency 11,323 (11,323) Capital outlay 62,931 62,931 20.301 Total expenditures 1,152,088 1,111,053 (41,035) 955,716 Revenue over expenditures 87,517 167,825 80,308 194,934 Other increases (decreases): Operating transfers to Capital Project Fund (150,000) (150,000) (107,000) Operating transfers from Capital Project Fund 22,100 22.100 Total other increases (decreases): (127,900) (127,900) 0 (107,000) Net increase (decrease) in fund balance (540,383) 39,925 $80,308 87,934 Fund balance- January 1 870,705 782,771 Fund balance- December 31 $910.630 5870.705 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, 1989 Totals (Memorandum Only) December 31, 1989 1988 Operating revenue: Customer billings $294,655 $292,406 Penalties 3,449 2,919 Plumbing permits 336 510 Refunds and reimbursements 389 2,653 Charges for services 6,099 1,625 Total operating revenue 304,928 300,113 Operating expenses: Contractual services 60,144 47,488 MWCC charges 129,557 101,837 Materials and supplies 6,208 10,985 Administrative charges 38,000 36,250 Depreciation 52,010 51,320 Total operating expenses 285,919 247,880 Net income from operations 19,009 52,233 Other income (expense): Interest on investments 66,003 45,331 Bond interest (8,916) (10,125) Paying agent fees (160) (104) Loss on disposal of assets _ (806) Total other income (expense) 56,121 35,102 Net income 75,130 87,335 Other increases (decreases): Credit arising from transfer of depreciation to contributions from property owners 41,835 41,835 Net increase in retained earnings 116,965 129,170 Retained eamings- January 1 785,756 656,586 Retained earnings- December 31 5902,721 5785,756 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, 1989 Totals (Memorandum Only) 1989 1988 Cash Flows from Operating Activities: Operating income $19,009 552,233 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 52,010 51,320 Change in assets and liabilities: Decrease (increase) in receivables (10,605) 15,002 Decrease (increase) in prepaid expenses (3,395) (2,255) Increase (decrease) in payables 18, (24,056) Net cash flows from operating activities 75,660 92,244 Cash flows from capital and related financing activities: Acquisition of fixed assets (143) (7,743) Loss on disposal of fixed assets (806) Principal paid on revenue bond maturities (15,000) (15,000) Interest and paying agent fees on revenue bonds (9,076) (10,229) Net cash flows from capital and related financing activities (25,025) (32,972) Cash flows from investing activities: Interest on investments 66,003 45,331 Net increase (decrease) in cash 116,638 104,603 Cash and investments ® January 1 661,765 557,162 Cash and investments m December 31 $778,403 5661,765 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 1 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 1 - 5KMMABY OF S NIF CANT ACCO1JNTTNG 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 Excluded: None Included. Housing and Redevelopment See below Authority The BRA of the City of Oak Park Heights is a separate legal entity which is authorized to expend monies generated by the City's tax increment district. The HRA shares the accounting system of the City. The appointment of HRA board members is made by the City Council. All activity and benefit derived from HRA activities is included within the City's boundaries. The transactions of the HRA have been included in the Annual Financial Report of the City of Oak Park Heights in conformance with the criteria established by the GASB. These transactions are confined to the St. Croix Mall TIF Fund. 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. D Service Funds - to account for the accumulation of resources for, and the payment of, general long -term debt principal, interest and related costs. Cr�ital Pro Funds - to account for financial resources to be used for the acquisition or construction of major capital facilities. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 2 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) FUNDS AND ACCOUNT GROUPS (cont'd) PROPRIETARY FUNDS: Enterorise 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. FIDU CIARY FUNDS Agencv 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 3 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIF5_ (continued) 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. 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. 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 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS. 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 4 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 2 m DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (continued) CASH AND INVESTMENTS (cont'd) 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, 1989: Petty cash $50 Checking (6,972) Savings 126,000 Certificates of deposit 3,077,800 Total $3,196,878 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, 1989, the carrying amount and bank balance of the City's deposits were $3,196,878 and $3,240,024 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 5 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 2 DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPSs (continued) CASH AND INVESTMENTS (cont'd) (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 1989, 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. 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 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 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 6 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 2 m DETAIL NOTES ON ALL FUND AND AC'COi?NT C:ROIJPS (continued) PROPERTY TAX REVENUE RECOGNITION (cont'd) 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 1989 and 1988 totaled $36,912 and $26,128 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. 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 7 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 2 w DETAIL NOTES ON ALL FT1ND AND ACCOUNT GROTIPS. (continued) FIXED ASSETS GENERAL General fixed assets are recorded as expenditures of the governmental funds at the time of purchase. Such assets are capitalized, at cost, in the general fixed 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 1/1/89 Additions Deletions _ 12/31/89 Umd $100,546 $100,546 Buildings and structures 576,643 $23,400 600,043 Machinery and equipment 231,809 76,023 307,832 Furniture and fixtures 26,777 7,768 34,545 Totals $935,775 $107,191 $0 $1,042,966 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: Depreciable Depreciation _ __ . Assets Lives 1 1988 Purchased assets: Water 5 - 50 years $7,810 $7,467 Sewer 5 - 50 years 2,365 2,018 Contributed assets: Water 50 years 21,070 21,070 Sewer 50 years 20,765 20,765 Totals $52,010 $51,320 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 8 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT (rR P (continued) FIXED ASSETS (cont'd) A summary of proprietary fund assets at December 31, 1989 is as follows: Buildings and structures $504,040 Machinery and equipment 61,765 Water and sewer lines 2,684,670 Total 3,250,475 Less: Accumulated depreciation (771,455) Net fixed assets $2,479,020 INTERFUND RECEIVABLES /PAYABLES As of December 31, 1989 the City had interfund receivable and payables totalling $7,440. 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 1990. CITY INDEBTEDNESS The following is a schedule of changes in City indebtedness for the year ended December 31, 1989: Special Assessment Debt With General Revenue Governmental Obligation Bonds Commitment Total Bondspayable - January 1, 1989 $180,000 $110,000 $1,159,000 $1,449,000 Bonds retired in 1989 (10,000) (15,000) (234,000) (259,000) Bonds payable - December 31, 1989 $170,000 $95,000 $925,000 $1,190,000 All bond issues outstanding at December 31, 1989 are backed by the full faith and credit of the City, including special assessment bond issues. Outstanding balances at December 31,1989, principal and interest payments due in 1990, 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 annual requirement to amortize all bonded debt outstanding at December 31, 1989 including interest payments of $316,920 are as follows: CITY OF OAK PARK HEIGHTS, MINNESOTA Page 9 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROi,�.,P (continued) CITY INDEBTEDNESS (cont'd) Special Assessment General Debt With Year Ending Obligation Governmental Proprietary December 990 31, $27,203 Commitment F und Types Total 293,213 $22,987 $343,403 1991 26,277 283,742 26,750 336,769 1992 25,353 258,461 25,100 308,914 1993 24,377 237,700 23,400 285,477 1994 23,403 21,700 45,103 1995 -2003 187,055 187,055__ Total $313,668 $1,073,116 $119,937 $1,506,721 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, 1989 is composed of the following: Final Net Payment Interest Authorized Outstanding Date Due Rate and Issued At 12/31/89 Bonded Indebtedness: General Debt:Special Assessment Bonds: Storm Sewer Bonds of 1982 12101/82 12/1/03 10.12 % $205,000 $170,000 Special Assessment Bonds with Governmental Commitment: General Obligation Storm Sewer Improvement Bonds of 1971 5101(71 5/01/91 4.60 173,000 20,000 General Obligation Improvement Bonds of 1982 8/01182 8/01/93 10.75 165,000 75,000 General Obligation Improvement Bonds of 1983 12/15 /83 2/01/93 8.60 80,000 35,000 General Obligation Improvement Bonds of 1987 7/01 /87 12/01/93 5.97 995,000 795.000 Total Special Assessment Bonds With Governmental commitment 1.413,000 92_5,000 Revenue Bonds: General Obligation Water and Sewer Bonds of 1980 10 /01 /80 10/01/94 7.50 200,000 95,000 Total Indebtedness S1,818,000 51,190.000 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 10 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 2 w DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (continued) 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, 1989, the $900,000 General Obligation Water and Sanitary Sewer Improvement Bonds of 1967 and the $500,000 General Obligation Water and Sanitary Sewer Improvement Bonds of 1968 are considered defeased. The remaining principal of the outstanding bonds at December 31, 1989 is as follows: Issue Amount $900,000 General Obligation Water and Sanitary Sewer Improvement Bonds of 1967 $305,000 $500,000 General Obligation Water and Sanitary Sewer Improvement Bonds of 1968 225,000 $530,000 The financial transactions of the escrow account are not presented in the financial statements. A summary of the 1989 activity, however, is presented in Exhibits 8, 9 and 10 of the Supplementary Financial Information Section. 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 1989 and 1988 is computed as follows: December 31, 1989 1988 Functional Value: Market value $196,515,200 $185,913,700 Assessed value (after fiscal disparities and tax increment captured values) Applicable Debt Limit (percentage) _ 2.00% 2.00% Debt Limit 3,930,304 3,718,274 Amount of Debt Applicable to Debt Limit: Total bonded debt 1,190,000 1,449,000 Less: Non - applicable debt: Special Assessment Bonds (925,000) (1,159,000) Revenue Bonds (95,000) (110,000) Cash and investments in corresponding Debt Service Funds (8,140) (7,608) Total Amount of Debt Applicable to Debt Limit 161,860 172,392 Legal Debt Margin $3,768,444 $3,545,882 CITY OF OAK PARK HEIGHTS, MINNESOTA Page 11 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 2 DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS, (continued) LEGAL DEBT MARGIN (cont'd) 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, 1989 consisted of the following amounts: Property taxes receivable: Delinquent $30,833 Special assessments receivable: Delinquent 100,658 Deferred 408,606 Special deferred 14,800 Total $554,897 RETIREMENT MULTIPLE EMPLOYER PERS Plan DeseriDtion All full -time and certain part -time employees of the City of Oak Park Heights are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund ( PEPFF) which are cost - sharing multiple- employer retirement plans. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Security and Basic members are not. All new members must participate in the Coordinated Plan. All police officers, fire fighters and peace officers who qualify for membership by statute are covered by the PEPFF. The payroll for employees covered by PERF and PEPFF for the year ended December 31, 1989, was $237,322 and $185,262, respectively; the City's total payroll was $451,798. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for Coordinated and Basic members. The retiring member receives the higher of step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic member is 2 percent of average salary for each of the first 10 years of service and 2.5 percent for each remaining year. For a Coordinated member, the annuity accrual rate is 1 percent of average salary for each of the first 10 years and 1.5 percent for each remaining year. Using Method 2, the annuity accrual rate is 2.5 percent of average salary for Basic members and 1.5 percent for Coordinated members. For PEPFF members, the annuity accrual rate is 2.5 percent for each of the first 25 years and 2 percent for each remaining year. For PERF members whose annuity is calculated using Method 1, and for all PEPFF members, a full annuity is available when age plus years of service equal 90. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 12 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 2 ® DETAIL NOTES ON ALI, FUND AND ACCOUNT GROUPS (continued) RETIREMENT (cont'd) There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree. No survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service, in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. Contributions Reauired and Contributions Made 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. According to Minnesota Statutes Chapter 356.215, Subd. 4(g), the date of full funding required for the PERF and the PEPFF is the year 2020. 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 combined statutory contribution rates and actuarially required contribution rates for the plans are as follows: Statutory Rates: Required Employees Employer Rates PERF (Basic and Coordinated Plans) 4.27% 4.67% 9.42% PEPFF 8.00% 12.00% 16.69% Total contributions made by the city during fiscal year 1989 were: Percentage of Amount Covered Payroll Employees Employer Employees Employer PERF $7,911 $8,652 4.27% 4.67% PEPFF 19,356 29,221 8.16% 12.31% Totals $27,267 $37,873 The City's contribution for the year ended June 30, 1989 to the PERF represented .0102 percent of total contributions required of all participating entities. For the PEPFF, contributions for the year ended June 30, 1989, represented .1316 percent of total contributions required of all participating entities. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 13 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 2 DETAIL NOTES ON ALL FIND AND ACCOUNT GROUPa (continued) RETIREMENT (cont'd) Funding Status and Proeress 1. Pension Benefit Obligation 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 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 among employers. PERA does not make separate measurements of assets and pension benefit obligation for individual employers. The pension benefit obligations as of June 30, 1989, are shown below: Total pension benefit obligation $3,714,257 $582,299 Net assets available for benefits, at cost (Market Values for PERF = $3,801,129; PEPFF = $694,277) w 2.934,977 637,868 Unfunded (assets in excess of) pension benefit obligation $779,280 ($55,569) The measurement of the pension benefit obligation is based on an actuarial valuation as of June 30, 1989. Net assets available to pay pension benefits were valued as of June 30, 1989. 2. Changes in Actuarial Methods and Benefit Provisions. A number of benefit improvements became effective during fiscal year 1989. Some of the major improvements affecting each fund include a reduction in the period required for vesting from five years to three years; an option for members hired before July 1, 1989, to have their annuity calculated under a level benefit accrual formula; the interest rate credited on refunds of member contributions increased from 5 percent to 6 percent; and the provision for an automatic bounce back feature for all joint and survivor annuity options. In the PEPFF, age and/or service requirements were reduced for eligibility for a normal retirement annuity, and early retirement annuity, and for certain disability and survivor benefits. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 14 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 2 - nETAIL NOTES ON ALL FUND AND.._.ACCOUNT GROUPS (continued) RETIREMENT (cont'd) For each fund, there were changes in the actuarial assumptions used in the annual actuarial valuation. Effective for all funds beginning in fiscal year 1989, the preretirement interest rate assumption was increased from 8 percent to 8.5 percent. Additionally for the PERF and the PEPFF, the amortization target date has been changed to 2020. Shown below are the effects on the pension benefit obligation of these changes in plan benefits and actuarial assumptions. Increase (Decrease) in Pension Benefit Obligation Due to: (In Thousands) PERF PEPFF Changes in plan benefits $127,472 527,851 Changes in actuarial assumptions (84,154) (25,963) Net increase in pension benefit obligation R 543,318 $1,888 Ten -Year Historical Trend Information Ten -year historical trend information is presented in PERA's Comprehensive Annual Financial Report for the year ended June 30, 1989. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. Related Partv Investments As of June 30, 1989, and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 15 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 2 DETAIL NOTES ON _ ALL FUND AND ACCOUNT GROIJP,� (continued) DESIGNATIONS AND RESERVATIONS OF FUND EQUITY Major fund equity designations at December 31, 1989 and 1988 are as follows: December 31, 1989 1988 General Fund: Designated for cash flow $554,200 $531,700 Designated for contingent employee benefits 87,100 79,400 General contingency designation 199,400 160,400 Designated for ensuing year's budget 3,468 Debt Service Funds: Reserved for debt service 521,243 500,064 Capital Project Funds: Designated for capital improvements 971,475 1,268,163 Enterprise Fund: Designated for capital improvements 661,765 Totals $2,995,183 $2,543,195 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 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. NOTE 4 ® "MFMORAND JM ONLY" PRESENT 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 16 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 4 m "MEMORANDUM ONLY" PRESENTATIONS (continued) (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 DEFERR VI ,S 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: Levy /Coliectiom 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 20,000 100.00% 1990/91 8,000 1991/92 8,000 NOTE 6 -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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 17 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 6 m SPECIAL TAXING DISTRICT (continued) 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 14 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 1990 to 2003. The original scheduled levies totaled $486,999. NOTE 7 = runny rretar WASTE O TROL 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. 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, 1989 and 1988 were as follows: December 31, 1989 1988 Current value credits m $429 5468 Debt service credits 104,045 119,108 Deferred charges 2,705 3,091 Total $107,179 $122,667 CITY OF OAK PARK HEIGHTS, MINNESOTA Page 18 of 18 NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 8 -,COMPENSATED ABSENCES 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 1989 1988 Vacation $2,267 $2,267 $2,110 Severence 36,201 36,201 31,389 Total $38,468 $0 $38,468 $33,499 The City also has an unrecorded contingent liability for unused employee sick leave of $86,638 and $77,263 at December 31, 1989 and 1988 respectively. NOTE 9 - SEGMENT INFORMATION The City maintains one Enterprise Fund which provides water and sewer services. Segment information for the year ended December 31, 1989 is as follows: Water Sewer Operating Revenue $126,127 $178,801 Operating Expenses (before depreciation) 63,616 170,293 Depreciation 28,880 23,130 Operating Income (Loss) 33,631 (14,622) 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 - 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. NOTE 12 - TAB INC CENT DISIRIU -- The City established an economic development district, "St. Croix Mall Tax Increment District ", on August 7, 1989. The original and current tax capacity values are $180,683. There have been no bonds issued as of December 31, 1989. INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 6 GENERAL FUND BALANCE SHEET December 31, 1989 December 31. Assets 1989 1988 Cash and investments $940,739 $911,344 Accounts receivable 9,255 2,435 Due from other governmental units 3,912 2,417 Due from other funds 4,658 18,000 Accounts receivable - certified 940 5,598 Special assessments receivable 400 Taxes receivable; 29,480 20,201 Delinquent Due from county 17.355 1,143 Total assets $1,006,739 5961,138 Liabilities and fund balance Liabilities: Accounts payable $60,448 $64,705 Salaries payable 4,356 4,352 Due to other governmental units 1,825 1,175 Deferred revenue 29,480 20,201 Total liabilities 96,109 90.433 Fund Balance: Unreserved: Designated for cash flow 554,200 531,700 Designated for contingent employee benefit 87,100 79,400 Designated for general contingency 199,400 160,400 Designated for ensuing years' budget 3,468 Undesignated 69,930 95,737 Total fund balance 910,630 870,705 Total liabilities and fund balance $1,006,739 5961.138 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 7 GENERAL FUND Pagel of 4 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1989 1989 Over (under) 1988 Budget Actual Budget Actual (Memorandum only) Revenue: General property taxes: Current and delinquent $889,242 $866,632 ($22,610) $803,944 Other 1,788 1,788 497 Total general property taxes 889,242 868,420 (20,822) 804,441 Special assessments 4451 4,451 Intergovernmental: State: Homestead credit 72,498 72,498 67,760 Small business credit 2,935 Local government aid 101,645 101,527 (118) 99,521 Police aid 22,350 24,863 2,513 23,856 EMS grant 625 625 Other 500 (500) Total state 197,618 199,513 1,895 194,072 County: Recycling grant 5,909 5,909 Gravel tax allocation 492 492 481 Total intergovernmental 197,618 205,914 8,296 194,553 Licenses and permits 18,445 20,187 1,742 22,682 Charges for services: Refuse collection 23,000 26,850 3,850 7,947 Other 2,500 2,484 (16) 4,255 Administrative - Enterprise Fund 38,000 38,000 36,250 Total charges for services 63,500 67.334 1 834 48,452 Fines and forfeits 33,600 36,776 3,176 27,788 Interest on investments 37,000 53,348 16,348 45,043 Refunds and reimbursements 19,423 19,423 6,066 Sale of property 3,000 3,000 459 Donations 200 25 (175) 1,166 Total revenue 1,239,605 1,278.878 39,273 1,150,650 Expenditures: General government: Mayor and council: Current: Personal services 28,130 32,801 4,671 33,301 Contractual services 64,350 55,405 (8,945) 63,485 Total mayor and council 92,480 88,206 (4,274) 96,786 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, 1989 1989 Over (under) 1988 Budget Actual Budget Actual Expenditures: (continued) (Memorandum General government: (continued) only) Elections: Current: Personal services $998 Materials and supplies 220 Total elections $0 $0 $0 1,218 City clerk: Current Personal services 86,750 85,989 (761) 77,431 Materials and supplies 2,600 2,997 397 3,366 Contractual services 4,050. 2,625 (1.425a 3,004 Total current 93,400 91,611 (1,789) 83,801 Capital outlay 500 655 155 Total city clerk 93,900 _ 92,266 (1,634) 83,801_ . Planning and zoning: Current: Contractual services 19,500 20,648, 1,148 19,969 City hall: Current: Materials and supplies 4,400 4,699 299 3,384 Contractual services 11,642 8,190 (3,452) 8,520 Total current 16,042 12,889 (3,153) 11,904 Capital outlay 24,100 24,230 130 1,763 Total city hall 40,142 37,1 (3,023) 13,667 Assessor: Current: Personal services 7,160 7.037 (123) 6,720 Engineering: Current: Contractual services 3,000 1,736 (1,264), 2,730_ General management: Current: Personal services 15,500 12,672 (2,828) 16,229 Materials and supplies 1,700 3,648 1,948 1,762 Contractual services 20,650 17,498 (3.152) 16,095 Total general management 37,850 33,818 (4,032), 34,086 Total general government 294,032 280,830 (13,202), 258,977 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, 1989 1989 Over (under) 1988 Budget Actual Budget Actual Expenditures: (continued) (Memorandum Public safety: only) Police department: Current: Personal services $354,400 $362,393 $7,993 $307,867 Materials and supplies 17,550 18,636 1,086 17,341 Contractual services 21,025 12,600 (8,425) 12,063 Total current 392,975 393,629 654 337,271 Capital outlay 36,300 36.283 (17) 17,473 Total police department 429,275 429,912 637 354,744 Fire protection: Current: Contractual services 20, 16,700 (3,300) 16,071 Total fire protection 20,000 16,700 (3,300) 16,071 Animal control: Current: Materials and supplies 63 63 68 Contractual services 5,500 _ 4 ,385 (LIL51 4,774 Total animal control 5,500 4, (1,052) 4,842 Total public safety 454,775 451,060 (3,715 375,657 Streets and highways: Streets and alleys: Current: Materials and supplies 700 930 230 425 Contractual services 17,500 15.041 (2,459) 16,792 Total streets and alleys 18,200 15.971 (2,229) 17.217 Snow and ice removal: Current: Materials and supplies 3,861 Contractual services 25,000 26,004 1.004 15,934 Total snow and ice removal 25,000 26,004 1,004 19,795 Street lighting: Current: Contractual services 45,000 34,419 (10,581) 34,212 Arboreous: Current: Personal services 2,150 2,144 (6) 942 Materials and supplies 50 72 22 25 Contractual services 50 44 (6) 30 Total aboreous 2,250 2,260 10 997 Total streets and highways 90,450 78.654 (11.796) 72,221 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, 1989 1989 Over (under) 1988 Budget Actual Budget Actual Expenditures: (continued) (Memorandum Sanitation: only) Refuse collection and disposal: Current Contractual services $156,000 $174,244 $18,244 $129,000 Tree removal and planting: Current; Contractual services 24,500 11,240 (13,260) 14,567 Total sanitation 180,500 185,484 _ 4,984 143,567 Recreation: Parks, playgrounds and rinks: Current: Personal services 105,400 103,350 (2,050) 94,778 Materials and supplies 3,700 4,401 701 4,800 Contractual services 10,150 5,511 (4,639) 4,651 Total current 119,250 113,262 (5,988) 104,229 Capital outlay 2,200 1,763 (437) 1,065 Total recreation 121 450 115,025 (6,425) 105,294 Contingency: Current: Contractual services 11,323 (11,323), Total expenditures 1,152,530 1,111,053 (41,477) 955, Revenue over expenditures 87,075 167,825 80,750 194,934 Other increases (decreases): Operating transfer from Capital Project Fund 22,100 22,100 Operating transfer to Capital Project Fund (150,000) (150,000) (107,000) Total other increases (decreases) (127,900) (127,900) 0 (107,000) Net increase in fund balance (¢40,825) 39,925 _ $80,750 87,934 Fund balance - January 1 870,705 782,771 Fund balance - December 31 $910,630 $870,705 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, 1989 G.O. Storm sewer Improvement Storm Sewer Bonds of 1971 Bonds of 1982 Assets Cash and investments $31,385 $8,140 Taxes receivable: Delinquent 127 881 Due from county 107 532 Due from other funds Special assessments: Delinquent Deferred 460 Special deferred Due from county 31 Total assets $32,110 59,553 Liabilities and Fund Balance Liabilities: Due to other governments Due to other funds Deferred revenue $587 $881 Total liabilities 587 881 Fund Balance: Reserved for debt service 31,523 8,672 Total liabilities and fund balance $32,110 59,553 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 1989 1988 $53,686 $37,106 $394,887 $525,204 $521,708 344 1,352 1,092 216 855 56 1,019 1,019 1,151 95,692 95,692 7,564 8,800 9,773 329,267 348,300 642,321 14,800 14,800 14,800 31 1,543 1,605 578,896 $48,422 5819,846 $988,827 $1,188,692 $109 $7,440 $7,440 22,742 $23,944 $9,773 424,959 460,144 665,777 23,944 9,773 432,399 467,584 688,628 54,952 38,649 387,447 521,243 500.064 $78,896 $48,422 $819,846 $988,827 S1,188,692 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, 1989 G.O. Storm Sewer Improvement Storm Sewer Bonds of 1 Bonds of 1982 Revenue: General property taxes: Current and delinquent S5,478 Storm Sewer ad valorem taxes: Current $26,602 Special assessments: Current and delinquent 285 Prepayments Total special assessments 285 0 Intergovernmental: State: Homestead credit 457 2,222 Small business credit Total intergovernmental 457 2,222 Interest on investments _ 2,909 670 Total revenue 9,129 29,494 Expenditures: Debt service: Principal 10,000 10,000 Interest 1,425 18,103 Paying agent fees 359 359 Total Expenditures 11,784 28,462 Revenue over (under) expenditures (2,655) 1,032 Net increase (decrease) in fund balance (2,655) 1,032 Fund balance - January 1 34,178 7,640 Fund balance - December 31 531,523 58,672 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. 1989 ... _ ,_. _ 1988 $10,863 _ $16,341 516,606 26,602 22,652 3,473 $10,809 $87,956 102,523 7,022 160,061 160,061 170,369 3,473 10,809 248,017 262,584, 177.391 905 3,584 3,290 143 905 0 0 3,584 3,433 5,183 3,026 37,849 49,637 32,163 20,424 13,835 285,866 358,748 m 252.245 15,000 9,000 200,000 244,000 39,000 9,875 3,483 58,890 91,776 95,143 359 716 1,793 1,392 25,234 12,483 259,606 337,569 135.535 (4,810) 1,352 26,260, 21,179 116,710 (4,810) 1,352 26,260 21,179 1 16,710 59,762 37,297 361,187 500,064 383,354 $54,952 $38,649 $387,447 $521.243 $500,064 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1989 Closed Capital Assets Bond Fund Improvements Cash and investments $730,605 $168,164 Due from other funds Due from developer Special assessments receivable: Delinquent 3,982 Deferred 43,588 Due from County 6,113 Total assets $784,288 S168,164 Liabilities and fund balance Liabilities: Cash overdraft Accounts payable $3,460 Contracts payable 19,743 Due to other funds Deferred revenue $47,570 Total liabilities 47,570 23,203 Fund balance (deficit): Unreserved: Designated for capital improvements 736,718 144,961 Undesignated Total fund balance 736,718 144,961 Total liabilities and fund balance $784,288 $168,164 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 10 Swager's St. Croix Totals Completed 9th Mall December 31, Construction Utilities (TIF) 1989 - 1988 $4,693 $83,245 $986,707 $1,312,117 901 901 3,658 $2,746 2,746 984 4,966 4,844 16,719 60,307 75,248 1,864 7,977 78 $25,161 $83.245 $2,746 $1,063,604 $1,395.945 $2,746 $2,746 $643 $264 4,367 $5,970 19,743 41,621 98 17,703 _ 65,273 80.093 18,346. 264 _ 2,746 92.129 127,782 6,815 82,981 971,475 1,268,163 6,815 82,981 0 971,475 1,268,163 $25.161 $83,245 $2,746 $1,063,604 $1.395,945 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, 1989 Closed Capital Bond Fund Improvements Revenue: General property taxes: Current and delinquent Special assessments: Current and delinquent $12,605 Prepayments 1,286 Total special assessments 13,891 Interest on investments 55,268 $48,974 Connection charges 16,443 Refunds and reimbursements Donations and contributions 20.000 Total revenue 85,602 68.974 Expenditures: Professional services 783 Construction costs 519,082 Capital outlay Total expenditures 783 519.082 Revenue over (under) expenditures 84,819 (450,108) Other increases (decreases): Operating transfer from General Fund 150,000 Operating transfer to General Fund (22,100) Operating transfer from Capital Project Fund 200,000 Operating transfer to Capital Project Fund (200,000) Total other increases (decreases) (222,100) 350.000 Net increase (decrease) in fund balance (137,281) (100,108) Fund balance (deficit) e January 1 873,999 245.069 Fund balance o December 31 5736,718 $144,961 The accompanying notes are an integral part of these financial statements CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 1 i Swager's River Hills St. Croix Totals Completed 9th Utility and Street Mall December 31, Construction Utilities Improvement (TIM 1989 1988 (Memorandum Only) $149 $6,373 $18,978 21,581 255 1,541 4,026 6,628 20,519 25,607 4,401 $8,530 117,173 96,825 16,443 19,210 $20,698 $26,695 47,393 20,000 11,029 8,530 20,698 26,695 221,528 141.791 14,865 26,695 42,343 1,446 76,137 8,554 603,773 111,875 - -- -- - -- - -- 9,541 76,137 8,554 14,865 26,695 646,116 122,862 (65,108). (24) 5,833 0 (424,588) 18,929 150,000 107,000 (22,100) 200,000 (200.000) 0 0 0 p 0 127,900 107,000 (65,108) (24) 5,833 0 (296,688) 125,929 71,923 83,005 (5,833) 0 1,268,163 1,142,234 $6.815 $82,981 $0 $0 $971,475 $1,268,163 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, 1989 December 31, Assets 1989 1988 (Memorandum Current assets: Only) Cash and investments $778,373 $661,765 Due from other funds 862 137 Accounts receivable: Customers 79,372 69,494 Certified to county 725 1,109 Other 386 Prepaid MWCC 12,765 9.370 Total current assets 872,483 741,875 Utility plant in service - at cost: Buildings and structures 504,040 504,040 Machinery and equipment 61,765 61,591 Distribution and collection system 2,684,670 2,062,834 Total 3,250,475 2,628,465 Less: Allowance for depreciation (771,455) (719.445) Net fixed assets 2,479,020 1,909,020 _ Total assets $3,351,503 $2,650,895 Liabilities and fund equity Current Liabilities: Accounts payable $2,628 $1,859 Due to other governmental units 22,858 4,571 Due to other funds 106 Accrued interest 1,997 2,306 Meter deposits 61,054 61,053 Bonds payable 15,000 15,000 Total current liabilities 103,537 84,895 Noncurrent liabilities: Bonds payable 80,000 95.000 Total liabilities 183,537 179,895 Fund equity: Contributions from property owners - net 2,265,245 1,685,244 Retained earnings: Designated 661,765 Undesignated 240,956 785,756 Total fund equity 3,167,966 2,471,000 Total liabilities and fund equity $3,351,503 $2,650,895 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, 1989 Totals Water Sewer December 31, Operating Operating 1989 1988 (Memorandum Revenue: Only) Customer billings $119,330 $175,325 $294,655 $292,406 Penalties 1,404 2,045 3,449 2,919 Plumbing permits 168 168 336 510 Refunds and reimbursements 389 389 2,653 Charges for services 5.225 874 6,099 1,625 Total operating revenue 126,127 178,801 304,928 300.113 Expenses: Contractual services 38,602 21,542 60,144 47,488 MWCC charges 129,557 129,557 101,837 Materials and supplies 6,014 194 6,208 10,985 Administrative and personnel charge 19,000 19,000 38,000 36,250 Depreciation: On purchased assets 7,810 2,365 10,175 9,485 On contributed assets 21,070 20,765 41,835 41,835 Total operating expenses 92,496 193,423 285,919 247.880 Operating income (loss) $33,631 ($14,622) 19,009 52,233 Other income (expense): Interest on investments 66,003 45,331 Bond interest (8,916) (10,125) Paying agent fees (160) (104) Loss on disposal of assets (806) Total other income 56.121 35,102 Net income 75.130 87.335 Other increases (decreases): Credit arising from transfer of depreciation to Contributions from property owners 41,835 41,835 Net increase in retained earnings 116,965 129,170 Retained earnings - January 1 785,756 656,586 Retained earnings - December 31 $902,721 $785,756 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, 1989 Totals 1989 1988 (Memorandum Cash Flows from Operating Activities: Only) Operating income $19,009 $52,233 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 52,010 51,320 Change in assets and liabilities: Decrease (increase) in receivables (10,605) 15,002 Decrease (increase) in prepaid expenses (3,395) (2,255) Increase (decrease) in payables 18,641 (24,056) Net cash flows from operating activities 75,660 92,244 Cash flows from capital and related financing activities: Acquisition of fixed assets (174) (7,743) Loss on disposal of fixed assets (806) Principal paid on revenue bond maturities (15,000) (15,000) Interest and paying agent fees on revenue bonds (9,076) (10,229) Net cash flows from capital and related financing activities (25,056) (32,972) Cash flows from investing activities: Interest on investments 66,003 45,331 Net increase in cash 116,607 I04,603 Cash and investments - January 1 661,765 557,162 Cash and investments - December 31 5778372 $661,765 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 15 AGENCY FUNDS COMBINING BALANCE SHEET December 31, 1989 Developers Totals Deposit Investment December 31, Fund Fund 1989 1988 Assets (Memorandum Only) Cash Accrued interest receivable $28,250 $28,250 $47,765 Accounts receivable $130 130 130 Due from developers 4,244 4,244 1.798 Total assets $4,374 528, $32,624 _ 549.693 Liabilities Cash overdraft $3,149 $28,250 $31,399 $48,669 Accounts payable 825 825 545 Due to developers 400 400 479 Total liabilities $4,374 $28,250 $32,624 549.693 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 16 AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For The Year Ended December 31, 1989 Balance Balance January 1, December 31, 1989 Additions Deletions 1989 Developers' Deposits Fund: Assets Cash ($904) $12,633 $14,878 (53,149) Accounts receivable 130 130 Due from developers 1,798 3,455 1,009 4,244 Total assets S1,024 $16,088 S15,887 $1,225 Liabilities Accounts payable $545 $825 $545 $825 Due to developers 479 166 245 400 Total liabilities $1,024 5991 5790 51,225 Investment Fund: Assets Accrued interest $47,765 $28,250 $47.765 $28,250 Liabilities Cash overdraft $47,765 $13,122,596 $13,142,111 $28,250 Total A�-Yencv: Assets Cash ($904) $12,633 $14,878 ($3,149) Accrued interest receivable 47,765 28,250 47,765 28,250 Due from developers 1,798 3,455 1,009 4,244 Due from county 130 0 0 130 Total assets 548,789 544,338 $63,652 $29,475 Liabilities Cash overdraft $47,765 $13,122,596 $13,142,111 $28,250 Accounts payable 545 825 545 825 Due to developers 479 166 245 400 Total liabilities $48,789 $13,123,587 $13.142,901 529,475 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, 1989 (UNAUDITED) Balance Balance January 1, December 31, Description 1989 Additions.-... Deletions 1989 Land $50,625 $50,625 Land improvements 49,921 49,921 Buildings and structures 576,643 $23,400 600,043 Machinery and equipment 231,809 76,023 307,832 Furniture and fixtures 26,777 7,768 34,545 Totals $935,775 $ 107,191 $0 $ 1,042,966 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, 1989 December 31, 1989 1988 Amount Available And To Be Provided For The (Memorandum Retirement of Long -Term Debt, Only) Bonds: Amount available in debt service funds $521,243 $500,064 Amount to be provided from future tax levies/ special assessment collections 573,757 838,936 Compensated absences: Amount to be provided 38,468 33,499 Total available and to be provided $1,133,468 $1,372,499 General Long -Term Debt Pavable Bonds payable: General Obligation Bonds: Storm Sewer Bonds $170,000 $180,000 Special Assessment Bonds with Governmental Commitment: G.O. Storm Sewer Improvement Bonds of 1971 20,000 30,000 G.O. Improvement Bonds of 1982 75,000 90,000 G.O. Improvement Bonds of 1983 35,000 44,000 G.O. Improvement Bonds of 1987 795,000 995,000 Compensated absenses payable 38,468 33,499 Total general long -term debt payable $1,133,468 $1,372,499 The accompanying notes are an integral part of these financial statements. SUPPLEMENTARY FINANCIAL IN F 0 R M A T 10 N CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS December 31, 1989 Final Net Payment Interest Dated 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 To Date At 12/31/89 In 1990 In 1990 $173,000 $153,000 $20,000 $10,000 $855 165,000 90,000 75,000 15,000 8,263 80,000 45,000 35,000 9,000 2,704 995.000 200.000 795.000 200.000 47,390 1,413.000 488,000 925,000 , 234,000 59,212 205.000 35,000 170,00, 10.000 17,203 200,000 105.000 95,000 15,000 7.987 51,818.000 $628.000 $1.190.000 $259,000 584,402 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 2 SPECIAL ASSESSMENT DEBT WITH GOVERNMENTAL, COMMITMENT SCHEDULE OF DEBT SERVICE PAYMENTS TO MATURITY December 31, 1989 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 m of 1982 of 1983 of 1987 Total Bonds payable $20,000 $75,000 $35,000 $795,000 $925,000 Futute interest payable 1,140 21,413 6,103 119,460 148,116 Totals $21,140 $96,413 $41,103 $914,460 $1,073,116 Payments to maturity: 1990 $10,855 $23,263 $11,705 $247,390 $293,213 1991 10,285 26,650 10,917 235,890 283,742 1992 24,250 10,121 224,090 258,461 1993 22,250 8,360 207,090 237,700 Totals $21,140 $96,413 $41,103 $914,460 $1,073,116 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 3 REVENUE BONDS AND DEBT SERVICE BONDS SCHEDULE OF DEBT SERVICE PAYMENTS TO MATURITY December 31, 1989 Special Taxing District $205,000 Water And Sewer Storm Sewer Revenue Bond Bond of 1982 Bonds payable $95,000 $170,000 Futute interest payable 24,937 143,668 Totals $119,937 5313.668 Payments to maturity: 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 $119,937 $313,668 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 4 SECURITIES FOR DEPOSIT December 31, 1989 Description Amount U. S. Treasury Note $1,601,000 Federal Home Loan Mortgage 3,445,702 Federal National Mortgage Association 1,977,899 Federal Home Loan Bank 901,359 St. Paul Port Authority Bond 51,108 Government National Mortgage Association 519.576 Total $8,496,644 The above securities have been: Ass41ned By: Held By Amount Metropolitan Federal Bank FHLB - Des Moines, Iowa $3,530,704 Cosmopolitan State Bank of Stillwater First Bank St. Paul 100,109 Central Bank First Minneapolis 2,224,099 Firstar Bank First Minneapolis 2,641,732 Total $8,496,644 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 5 INSURANCE IN FORCE December 31, 1989 Coverage Amount Umbrella Liability $ 1,000,000 Package: Property Blanket Building and Contents 1,525,450 Public Liability 600,000 Errors or omissions 600,000 Miscellaneous radio equipment 12,850 Contractors Equipment 36,276 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, 1989 Special Special Assessment Bonds Taxing District Year Of Year of Bond Issue Storm Sewer Total Collection 1971 1982 Total Bonds of 1982 All Bonds 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 $ 12,000 $24,000 $36,000 $329,375 $365,375 CITY OF OAK PARK HEIGHTS, NIINNESOTA Exhibit 7 TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES _ Tax Capacity Values Assessed Values 1989/1990 1988/1989 1987/1988 1986/1987 Taxable Valuations: Real estate $6,990,588 $7,161,701 $53,623,632 $51,341,491 Personal property 124,501 114,560 920,587 873,803 Fiscal disparity: Contribution (611,697) (452,863) (3,397,242) (2,752,913) Distribution 326,159 282,761 1,822,244 1,490,130 Total $6,829,551 $7,106,159 $52,969,221 $50,952,511 Tax Levy: City Wide: General revenue $1,108,430 $961,740 $899,000 $745,000 Debt service 20,000 18,000 22,500 Total City Wide 1,128,430 979,740 899,000 767,500 Storm Sewer District: Storm Sewer Bonds of 1982 28,563 29,508 24,731 25,177 Total Tax Levy $1,156,993 $1,009,248 $923,731 $792,677 Mill Rate: City Wide: General revenue 17.034 14.813 Ccbt 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 17.100% 13.528% Debt service 0.309 0.253 Total City Wide 17.409 13.781 Storm Sewer District: Storm Sewer Bonds of 1982 0.603 0.629 Total Tax Capacity Rate 18.012% 14.410% CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 8 DEBT SERVICE ESCROW AGENT ACCOUNT BALANCE SHEET December 31, 1989 First Trust St. Paul December 31, Assests 1989 1988 Cash $793 $350 Investments 241,557 296,897 Total cash and investments 242,350 297,247 Amount to be provided by future interest 287,650 292,753 Total assets $530,000 $590,000 Liabilities Liabilities: Bonds payable $530,000 $590,000 Total liabilities $530,000 $590,000 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, 1989 Amount to be provided - January 1, 1989 $292,753 Deductions: Interest received on investments (33,548) Additions: Bond interest and paying agent fees 28,445 .Amount to be provided - December 31, 1989 $287,650 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 10 DEBT SERVICE ESCROW AGENT ACCOUNT BONDSPAYABLE December 31, 1989 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 $305,000 $225,000 $530,000 Future interest payable 66,270 55,521 121,791 Totals $371,270 $280,521 5651,791 Year of maturity 1990 $49,335 $36,250 585,585 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 $371.270 $280,521 5651,791 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 11 SCHEDULE OF CONSTRUCTION COSTS December 31, 1989 Legal, and Current Prior Contractor Engineer Fiscal Other Total Year Years Capital Improvements Fund: City Hall Expansion $394,874 $40,295 $50 $33,182 $468,401 $468,401 $0 Street Sealcoat 18,757 2,515 597 21,869 21,869 0 Park Improvements 28,812 28,812 28,812 0 Total 413,631 42,810 50 62,591 519,082 519,082 0 Completed Construction Fund: County Seat Estates 57,502 13,306 500 4,829 76,137 76,137 0 Swager's 9th Fund: Swagers 9th 681,443 8 2,016 10,630 38,916 813,005 8,554 804,451 Total - All Funds $1,152,576 $138,132 $11,180 $106,336 $1,408,224 $603,773 S804,451 S T A T I S T I C A L S E C T 10 N CITY OF OAK PARK HEIGHTS, MINNESOTA Table 1 GENERAL AND SPECIAL REVENUE FUNDS EXPENDITURES BY FUNCTION Years 1980 Through 1989 (UNAUDITED) Streets General Public and Capital Year Total Government Safety Highways Sanitation Recreation Outlay 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 1989 1,111,053 255,945 414,777 78,654 185,484 113,262 62,931 CITY OF OAK PARK HEIGHTS, MINNESOTA Table 2 GENERAL AND SPECIAL REVENUE FUNDS REVENUE BY SOURCE Years 1980 Through 1989 (UNAUDITED) Licenses Fines Charges Inter - and and Interest for Year Total Taxes povernmental Permits Forfeits Income services Miscellaneous 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 1989 1,278,878 868,420 205,914 20,187 36,776 53,348 67,334 26,899 CITY OF OAK PARK HEIGHTS, MINNESOTA Table 3 PROPERTY TAX LEVIES AND COLLECTIONS Years 1980 Through 1989 (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 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% 1989 1,031,733 983,752 95.35% 1,898 985,650 95.53% 30,833 2.99% CITY OF OAK PARK HEIGHTS, MINNESOTA Table 4 SPECIAL ASSESSMENT COLLECTIONS Years 1982 Through 1989 (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 1989 211,926 113,895 53.74% * 8,889 57.94% * 102,323 * Note: Special assessments for 1989 include a single assessment roll collectible over five years (1989 through 1993) appropriated to finance the G. O. Improvements Bonds of 1987. Substantially all of the underlying property is owned or controlled by a single developer. This developer has elected to pay these assessments as the underlying parcels are sold and/or developed rather than over the scheduled years of the certified collections for this assessment roll. The above delinquent assessments of $102,323 include $95,700 from this single developer. Actual versus scheduled collections for this assessment roll have been as follows through December 31, 1989: Originally Year Actual Scheduled 1987 $128,240 $0 1988 167,569 0 1989 248,017 261,700 $543,826 $261,700 Based upon the past history of this developer (as shown above) the City expects that the 1989 delinquencies (plus future installments) will be collected at or before the related bond maturities. Should this not occur, the City has sufficient reserve balances in other City Funds to temporarily finance any temporary shortages.