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Home My WebLink AboutAnnual Financial Report December 31, 1990 CITY OF OAK PARK HEIGHTS, MINNESOTA ANNUAL. FINANCTAL REPORT DECEMBER 31, 1990 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 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 Ind ividual Fund and Account Group Financi Statements 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) SoWemen= 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 Insurance in Fo= Exhibit 4 Future Scheduled Tax Levies Exhibit 5 Taxable Valuations, Tax Levies and Tax Rates Exhibit 6 Debt Service Escrow Agent Account: Statement of Changes Cash and Investments Exhibit 7 — Bonds Payable Exhibit 8 Schedule of Construction Costs Exhibit 9 Schedule of Sources and Uses of Funds For St. Croix Mall Tax Increment District Exhibit 10 Statistical Section General and Special Revenue Funds - Expenditures by Function - Years 1981 through 1990 Table 1 General and Special Revenue Funds - Revenue by Source -. Years 1981 through 1990 Table 2 Property Tax Levies and Collections - Years 1981 through 1990 Table 3 Special Assessment Collections - Years 1982 through 1990 Table 4 .c. CITY OF OAK PARK HEIGHTS, MINNESOTA ORGANIZATION December 31, 1990 Term Exnirea 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 Administrator - Treasurer: LaVonne Wilson Appointed -- Deputy Clerk/Finance Director Judy Holst Appointed r r VOTO, TAUTGES, REDPATH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS / Birch Lake Professional Building • 1310 E. Hwy. 96 • White Bear Lake, MN 55110 • Fax (612) 426 -5004 \ • Phone (612) 426 -3263 INDEPENDENT AUDITOR'S REPORT ROBERT I. VOTO, CPA ROBERT G TAUTGES, CPA ... IAMES S. REDPATH, CPA To the Honorable Mayor and D. KENNETH GEORGE, CPA DAVID J MOL, CPA Members of the City Council City of Oak Park Heights, Minnesota We have audited the general purpose financial statements of the City of Oak Park Heights, Minnesota as of and for the year ended December 31, 1990 as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The City does not maintain complete accounting controls over quantities and costs of general fixed assets. Therefore, we were not able to obtain sufficient evidential matter to form an opinion regarding the amounts at which plant and equipment are recorded in the General Fixed Assets Account Croup at December 31, 1990 or 1989 (stated at $1,065,830 and $1,042,966 respectively). Accordingly, we do not express an opinion on this account group. In our opinion, except for the effects of such adjustments, if any, as might have been determined .. had we been able to obtain sufficient evidential matter regarding the City's General Fixed Assets the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Oak Park Heights, Minnesota, as of December 31, 1990, and the results of its operations and its cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial — statements taken as a whole. The combining, individual fund, and account group financial statements, schedules and statistical information in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Oak Park Heights, Minnesota. Such information, except for that portion marked "unaudited", on which we express no opinion, has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. February 15, 1991 _ VOTO, TAUTGES, REDPATH & CO., LTD. Certified Public Accountants MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • PRIVATE COMPANIES PRACTICE SECTION MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS GOVERNMENT FINANCE OFFICERS ASSOCIATION • MINNESOTA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS r rs GENERAL PURPOSE FINANCIAL STATEMENTS J r r r r r rr CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED BALANCE SHEET- _ ALL FUND TYPES AND ACCOUNT GROUPS DECEMBER 31,1990 Governmental Fund Types Debt Capital Assets General Service Project Cash and cash equivalents $398,360 Investments 645,192 $758,578 $1,075,729 Cash with escrow Accrued interest receivable Accounts receivable 17,839 373 Due from other funds Due from other governmental units 3,124 Due from developers Prepaid items Taxes receivable: Delinquent 32,100 1,358 Due from County 52,213 2,191 Special assessments receivable 204,727 82,711 ` 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 $1,148,828 $966,854 $1,158,813 Liabilities, equity and other credits Liabilities: Cash overdraft $120,872 ' Accounts payable $42,651 8,073 Salaries payable 4,163 Contracts payable 15,413 Accrued interest Due to other governmental units 3,633 Due to other funds Deposits / refunds payable 2,750 Compensated absences payable Deferred compensation payable Bonds payable Deferred revenue 32,100 $190,123 82,605 ` Total liabilities 82,547 190,123 229,713 Equity and other credits Invested in general fixed assets Contributions - net Retained earnings: Reserved Unreserved Fund balance (deficit): Reserved for debt service 776,731 Unreserved: Designated 978,941 1,054,776 Undesignated 87,340 (125,676) Total equity and other credits 1,066,281 776,731 929,100 Total liabilities, equity and other credits $1,148,828 $966,854 $1,158,813 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 1 .r Proprietary Fiduciary Totals Fund Type Fund Type Account Groups (Memorandum Only) General General Long- December 31, Enterprise Agency Fixed Assets Term Debt 1990 1989 (unaudited) S864,080 $1,262,440 $3,231,023 2,479,499 '-" $2,375 2,375 44,778 44,778 28,250 91,254 130 109,596 90,808 7,440 3,124 3,912 3,332 3,332 6,990 12,823 12,823 12,765 33,458 30,832 54,404 18,210 287,438 534,047 2,435,253 $1,065,830 3,501,083 3,521,986 $776,731 776,731 521,243 415,671 415,671 612,225 $3,403,410 $50,615 $1,065,830 $1,192,402 $8,986,752 $8,619,731 $48,162 ' $169,034 $34,145 $8'227 58,951 68,268 4,163 4,356 -- 15,413 19,743 1,688 1,688 1,997 15,678 19,311 24,683 67,361 78 7,440 70,189 64,479 $41,402 41,402 38,468 2,375 2,375 80,000 1,151,000 1,231,000 1,190,000 304,828 554,897 172,954 50,615 $0 1,192,402 1,918,354 2,008,476 1,065,830 1,065,830 1,042,966 2,206,005 2,206,005 2,265,245 '- 661,765 661,765 661,765 362,686 362,686 237,931 -- 776,731 521,243 2,033,717 1,812,175 (38,336) 69,930 3,230,456 0 1,065,830 0 7,068,398 6,611,255 $3,403,410 $50,615 $1,065,830 $1,192,402 $8,986,752 $8,619,731 `� The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK FIGHTS, MINNESOTA Statement 2 COMBINID STATEMENT OF REVENUE, EXPENDITURES AND ... CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES For The Year Ended December 31, 1990 Totals (Memorandum Onlv) Debt Capital December 31. Revenue: General Service Proiect 1990 1989 General property taxes $1,142,770 $48,036 $1,190,806 $911,363 Intergovernmental 40,037 28 40,065/ 209,498 Licenses and permits 48,870 48,870 20,187 Fines and forfeits 42,165 42,165 36,776 Interest on investments 62,064 52,552 $75,859 190,475 220,158 Charges for services 102,836 102,836/ 67,334 Special assessments 353,382 19,386 372,768/ 287,554 .. Connection charges 10,950 10,950 16,443 Refunds and reimbursements 9,812 9,812 66,816 Donations and contributions 150 10,523 10,673 20,025 Other 41 373 414 3.000 Total revenue 1.448.745 453.998 117.091 2.019.834 1.859.154 Expenditures: Current: General government 285,328 47,094 332,422 298,552 Public safety 469,581 469,581 414,777 Streets and highways 71,359 71,359 78,654 Sanitation 228,675 228,675 185,484 Recreation 129,226 129,226 113,262 Capital outlay 8,925 8,925 62,931 Contingency Debt service: Principal 244,000 244,000 244,000 Interest 76,416 76,416 91,776 Paying agent fees 2,414 2,414 1,793 ' Construction costs 333.803 383.$03 603.509 Total expenditures 1.193,094 322,830 430,897 1,946,821 2.094.738 Revenue over (under) expenditures 255.¢L 131,168 (313.806) 73.013 (235.584) ` Other increases (decreases): Bond proceeds 39,694 256,057 295,751 Operating transfers from other funds 100,000 100,000 372,100 Operating transfers (to) other funds (100.000) (100.000) (372.100), Total other increases (decreases) (100.000] 39.694 356.057 295.751 0 Net increases (decreases) in fund balance 155,651 170,862 42,251 368,764 (235,584) • Fund balance - January 1 910,630 521,243 971,475 2,403,348 2,638,932 Residual equity transfer - In 84,626 5,443 90,069 Residual equity transfer - Out (90.069) (90.069) - Fund balance - December 31 J1.066.281 _ $776.731 3929.100 $2.772,112 $2.403.348 - The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 3 COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND For The Year Ended December 31, 1990 1990 Over (Under) 1989 Budget Actual Budget Actual (Memorandum Revenue: Only) General property taxes $1,108,430 $1,142,770 $34,340 $868,420 Special assessments 4,451 Intergovernmental 23,825 40,037 16,212 205,914 Licenses and permits 42,365 48,870 6,505 20,187 Fines and forfeits 40,600 42,165 1,565 36,776 Interest on investments 40,000 62,064 22,064 53,348 Charges for current services 96,000 102,836 6,836 67,334 Other 800 10,003 9,203 22,448 Total revenue 1,352,020 1,448,745 96,725 1,278,878 Expenditures: Current: General government 306,066 285,328 (20,738) 255,945 Public safety 563,865 469,581 (94,284) 414,777 Streets and highways 78,100 71,359 (6,741) 78,654 Sanitation 231,300 228,675 (2,625) 185,484 Recreation 137,250 129,226 (8,024) 113,262 �. Contingency 26,084 (26,084) Capital outlay 9,355 8,925 (430) 62,931 Total expenditures 1,352,020 1,193,094 (158,926) 1,111,053 " Revenue over expenditures 0 255,651 255,651 167,825 Other increases (decreases): Operating transfers (to) Capital Project Fund (100,000) (100,000) (150,000) Operating transfers from Capital Project Fund 22,100 Total other increases (decreases): 0 (100,000) (100,000) (127,900) Net increase in fund balance $0 155,651 $155,651 39,925 Fund balance- January 1 910,630 870,705 Fund balance- December 31 $1,066,281 $910,630 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, 1990 Totals (Memorandum Only) r December 31, 1990 1989 Operating revenue: Customer billings $332,910 $294,655 " Penalties 4,370 3,449 Plumbing permits 616 336 Refunds and reimbursements 471 389 ✓- Charges for services 1,144 3,074 Total operating revenue 339,511 301,903 Operating expenses: - Contractual services 58,659 60,144 MWCC charges 139,861 129,557 Materials and supplies 7,036 6,208 Administrative charges 57,000 38,000 Depreciation 68,746 52,010 Total operating expenses 331,302 285,919 Net income (loss) from operations 8,209 15,984 Other income (expense): Interest on investments 65,193 66,003 Bond interest (7,678) (8,916) _ Paying agent fees (210) (160) Loss on disposal of assets (806) Total other income (expense) 57,305 56,121 ^ Net income 65,514 72,105 Other increases (decreases): -- Credit arising from transfer of depreciation to contributions from property owners 59,241 41,835 Net increase in retained earnings 124,755 113,940 Retained earnings -January 1 899,696 785,756 Retained earnings- December 31 $1,024,451 $899,696 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, 1990 Totals (Memorandum Only) 1990 1989 Cash Flows from Operating Activities: Operating income $8,209 $15,984 Adjustments to reconcile operating income to net cash from operating activities: Depreciation 68,746 52,010 Change in assets and liabilities: Decrease (increase) in receivables (9,909) (10,605) Decrease (increase) in prepaid expenses (58) (3,395) Increase (decrease) in payables 1,701 21,666 --- Net cash flows from operating activities 68,689 75,660 Cash flows from capital and related financing activities: Acquisition of fixed assets (24,978) (979) Principal paid on revenue bond maturities (15,000) (15,000) Interest and paying agent fees on revenue bonds (8,197) (9,076) Net cash flows from capital and related financing activities (48,175) (25,055) Cash flows from investing activities: Interest received on investments 65,193 66,003 Net increase (decrease) in cash 85,707 116,608 Cash and cash equivalents - January 1 778,373 661,765 Cash and cash equivalents - December 31 $864,080 $778,373 -- The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS Page 1 of 19 December 31, 1990 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTIN POI•I I S 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 R eason for inclusion/exclus Excluded: None Included Housing and Redevelopment See below Authority The HRA 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. Debt Service Funda - to account for the accumulation of resources for, and the payment of, general long -term debt principal, interest and related costs. Capital Project Funds - to account for financial resources to be used for the acquisition or construction of major capital facilities. — CITY OF OAK PARK HEIGHTS, MINNESOTA Page 2 of 19 NOTES TO FINANCIAL STATEMENTS ... December 31, 1990 NOTE 1 - SUMMAR OF S IGNIFICANT ACCOUNTING POLICIES (continued) FUNDS AND ACCOUNT GROUPS (cont'd) PROPRIETARY FUNDS Enterprise Funds - to account for operations: (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of 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. FIDUCIARY FUNDS: ency 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: Qeneral Fixed As= - 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 Lone -Term Debt - This account group contains the long -term obligations of the City including general obligation bonds and leases,payable. MEASUREMENT FOCUS r The accounting and reporting treatment applied to a fund is determined by its measurement focus. All Governmental Funds are accounted for on a current financial resource 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. r CITY OF OAK PARK HEIGHTS, MINNESOTA -- NOTES TO FINANCIAL STATEMENTS Page 3 of 19 December 31, 1990 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIE (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 fund 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 19 NOTES TO FINANCIAL STATEMENTS December 31, 1990 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUP (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 31,1990: Petty cash $50 Checking (14,872) Savings 90,227 Certificates of deposit 3,497,500 Total $3,572,905 DEPOSITS r 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, 1990, the carrying amount and bank balance of the City's deposits were $3,572,857 and $3,602,073 respectively, all of which was covered by federal depository insurance or collateralized by securities held in the City's name. ZnWrMENTS 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 19 _. NOTES TO FINANCIAL STATEMENTS December 31,19% NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GRO UPS (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 1990, the City chose not to invest in any of the above type of investments. The City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Enterprise Funds participate in an entity wide cash management pool. For the purposes of the Statement of Cash Flows, Enterprise Funds are considered as cash equivalents. At December 31, 1990 and 1989, the balances of Cash and cash equivalents were $1,093,406 and $3,196,878, respectively. 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 December (assessment date) 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 alien 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 6 of 19 NOTES TO FINANCIAL STATEMENTS December 31, 1990 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (continued) PROPERTY TAX REVENUE RECOGNITION (cont'd) 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 J� 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 Afi valuation growth since 1971. Property taxes paid to the City of Oak Park Heights through this formula for 1990 and 1989 totaled $33,746 and $36,912, 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 r 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. CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS Page 7 of 19 December 31, 1990 NOTE 2 - DETAIL NOTES ON ALI FIND AND ACCOUNT .RO IPS (continued) 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 Account Group 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 1/1/90 Additions Deletions 12/31/90 12d $100.546 $100,546 Buildings and structures 600,043 $4,842 604,885 Machinery and equipment 307,832 13,532 321,364 Furniture and fixtures 34,545 4,610 $120 39,035 ._ Totals $1 042966 -„ $ 22.984 $120 $1.065.830 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 1990 1989 _ Purchased assets: Water 5 - 50 years $7,140 $7,810 Sewer 5 - 50 years 2,365 2,365 Contributed assets: Water 50 years 30,368 21,070 Sewer 50 years 28,873 20,765 Totals $68,746 $52,010 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. — CTTY OF OAK PARK HEIGHTS, MINNESOTA Page 8 of 19 NOTES TO FINANCIAL STATEMENTS December 31, 1990 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (continued) FIXED ASSETS (cont'd) 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, 1990 is as follows: Buildings and structures $504,040 Machinery and equipment 86,743 Water and sewer lines 2,684,671 Total 3,275,454 Less: Accumulated depreciation (840,201) Net fixed assets $2 „435,253 — INTERFUND RECEIVABLES /PAYABLES As of December 31, 1989 the City had interfund receivable and payables totalling $7,440. All such interfund receivables and payables consisted of year -end closing adjustments to the accounting records of the City and were eliminated in 1990. CITY INDEBTEDNESS The following is a schedule of changes in City indebtedness for the year ended December 31,1990: Special Assessment Debt With General Revenue Governmental ObliRation Bonds Commitment Total Bonds payable - January 1, 1990 $170,000 $95,000 $925,000 $1,190,000 Bonds issued in 1990 300,000 300,000 Bonds retired in 1990 (10,000) (15,000) (234,000) (259,000) Bonds payable - December 31, 1990 $160„000 $80„000 $991,000 $1231,000 _ All bond issues outstanding at December 31, 1990 are backed by the full faith and credit of the City, including special assessment bond issues. Outstanding balances at December 31, 1990, principal and interest payments due in 1991, 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 9 of 19 .- NOTES TO FINANCIAL STATEMENTS December 31, 1990 NOTE 2 - DETAIL NOT ON ALL FUND AND ACCO G djQ_ IPS (continued) FIXED ASSETS (cont'd) r The annual requirement to amortize all bonded debt outstanding at December 31, 1990 including interest payments of $299,556 are as follows: Special Assessment General Debt With Year Ending Obligation Governmental Proprietary December 31, Bonds Commitment Fund Tvpes Total 1991 $26,277 $306,580 $26,750 $359,607 1992 25,353 328,236 25,100 378,689 1993 24,377 379,075 23,400 426,852 1994 23,403 133,250 21,700 178,353 1995 22,402 22,402 1996 -2003 164,653 164,653 Total $286,465 $1„147,141 $96,950 $1,530,556 The amount to be provided in the General Long -Term Debt Account Group 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 $373,312. City indebtedness at December 31, 1990 is composed of the following: ,.r Final Net Payment Interest Authorized Outstanding Bonded Indebtedness: Date Due Rate and Issued At 12/31/90 General Debt: Storm Sewer Bonds of 1982 12/01/82 12/1/03 10.12 % $205,000 $160,000 Special Assessment Bonds with Governmental Commitment: General Obligation Storm Sewer Improvement Bonds of 1971 5101/71 5/01/91 4.60 173,000 10,000 General Obligation Improvement Bonds of 1982 8/01/82 8/01/93 10.75 165,000 60,000 General Obligation Improvement Bonds of 1983 12/15/83 2/01/93 8.60 80,000 26,000 General Obligation Improvement Bonds of 1987 7/01/87 12/01193 5.97 995,000 595,000 General Obligation Improvement Bonds of 1990 10/01/90 12/01/94 6.40 -6.60 300,000 300,000 Total Special Assessment Bonds With Governmental Commitment 1,713,000 991,000 Revenue Bonds: General Obligation Water and Sewer Bonds of 1980 10/01/80 10/01/94 7.50 200,000 80,000 Cow absences 41.402 Total Indebtedness $2,118,000 $1,272,402 C1TY OF OAK PARK HEIGHTS, MINNESOTA Page 10 of 19 NOTES TO FINANCIAL STATEMENTS December 31, 1990 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (continued) CITY INDEBTEDNESS (cont'd) r 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 r 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, 1990, 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, 1990 is as follows: Issue Amount $900,000 General Obligation Water and Sanitary Sewer Improvement Bonds of 1967 $270,000 _ $500,000 General Obligation Water and Sanitary Sewer Improvement Bonds of 1968 200,000 $470,000 The financial transactions of the escrow account are not presented in the financial statements. A summary of the 1990 activity, however, is presented in Exhibits 7 and 8 of the Supplementary Financial Information Section. CITY OF OAK PARK HEIGHTS, MINNESOTA -- NOTES TO FINANCIAL STATEMENTS Page 11 of 19 December 31,1990 NOTE 2 - DETAIL NOTES ON AL.L. FUND AND ACCOUNT GRO P4 (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 1990 and 1989 is computed as follows: December 31, 1990 1989 Meet value $195,807,600 $196,515,200 Applicable Debt Limit (percentage) 2.00% 2.00% Debt Limit 3,916,152 3,930,304 Amount of Debt Applicable to Debt Limit: Total bonded debt 1,231,000 1,190,000 Less: Non - applicable debt Special Assessment Bonds (691,000) (925,000) Revenue Bonds (80,000) (95,000) Cash and investments in corresponding Debt Service Funds (8,762) (8,140) Total Amount of Debt Applicable to Debt Limit 451,238 161,860 Legal Debt Margin $3,464,914 $3,768,444 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, 1990 consisted of the following amounts: Property taxes receivable: Delinquent $33,458 Special assessments receivable: Delinquent 71,842 Deferred 184,728 Special deferred 14,800 Total $304,828 CITY OF OAK PARK HEIGHTS, MINNESOTA Page 12 of 19 NOTES TO FINANCIAL STATEMENTS December 31, 1990 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (continued) RETIREMENT MULTIPLE EMPLOYER PERS Plan Descri _ 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, fine 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, 1990, was $201,617 and $275,198, respectively; the City's total payroll was $501,471. 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 year of service. 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. 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. CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS Page 13 of 19 December 31, 1990 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GRO 1P4 (continued) MULTIPLE EMPLO M PERS (con't) Contributions Reaui_red 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 4.47% 4.82% 8.83% PEPFF 8.00% 12.00% 16.21% Total contributions made by the City during fiscal year 1990 were: Percentage of Amount Covered Payroll Employees Employer Employees Employer PERF $7,480 $7,923 4.22% 4.47% PEPFF 20,682 31,023 8.00% 12.00% Totals $28,162 $38,946 The City's contribution for the year ended June 30, 1990 to the PERF represented .0084 percent of total contributions required of all participating entities. For the PEPFF, contributions for the year ended June 30, 1990, represented .1278 percent of total contributions required of all participating entities. Funding States and Pro ec 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. CITY OF OAK PARK HEIGHTS, MINNESOTA Page 14 of 19 NOTES TO FINANCIAL STATEMENTS December 31, 1990 NOTE 2 - DETAIL• NOTES ON ALL FUND AND ACCOUNT CROUPS (continued) MULTIPLE EMPLOYER PERS (con't) The pension benefit obligations as of June 30, 1990, are shown below: PERF PEPFF _ (In thousands) Total pension benefit obligation $4,089,960 $657,453 Net assets available for benefits, at cost (Market Values for PERF = $3,547,243; PEPFF = $803,320) 3,250,157 739,068 Unfunded (assets in excess of) pension benefit obligation $839,803 ($81,615) The measurement of the pension benefit obligation is based on an actuarial valuation as of June 30, 1990. Net assets available to pay pension benefits were valued as of June 30, 1990. CbaniMc in Actuarial Methg& and Benefit Provisions For the fiscal year 1990 actuarial valuation, the PERA Board of Trustees approved the use of new withdrawal rates. The change was made to reduce, if not eliminate, the series of large, annually recurring actuarial losses in the last few years due to lower than expected terminations. With the adoption of new withdrawal rates, the pension benefit obligation increased $59,942,000 in the PERF and $6,978,000 in the PEPFF. Ten-Year Histories Trend Information Ten -year historical trend information is presented in PERA's Comprehensive Annual Financial Report for the year ended June 30, 1990. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. RdaaWd Party Investments . As of June 30, 1990, 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 NOTES TO FINANCIAL STATEMENTS Page 15 of 19 December 31, 1990 NOTE 2 - DETAIL NOTES ON ALT FUND AND ACCOUNT GROUPS (continued) DESIGNATIONS AND RESERVATIONS OF FUND EQUITY Major fund equity designations at December 31, 1990 and 1989 are as follows: December 31, 1990 1989 General Fund: Designated for cash flow $554,000 $554,200 Designated for contingent employee benefits 100,400 87,100 Designated for general contingency 227,800 199,400 Designated for ensuing year's budget 48,600 Designated for State aid loss 48,141 Debt Service Funds: Reserved for debt service 776,731 521,243 Capital Project Funds: Designated for capital improvements 1,032,630 971,475 Designated for committed contracts 22,146 Enterprise Fund: Reserved for capital improvements 661 ,765 661,765 Totals $3,472,213 $2,995,183 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 - "MEMORANDUM ON .Y" 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 fmancial 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 19 NOTES TO FINANCIAL STATEMENTS December 31, 1990 NOTE 5 - DEFERRED TAX LEVIES 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 aftamative 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/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 20,000 100.00% 1990/91 8,000 64,000 800.00% 1991/92 8,000 1992/93 0 1993/94 500 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS Page 17 of 19 December 31, 1990 NOTE 6 - SPECIAI. TAXING DICTRiCT The City Council of Oak Park Heights established Storm Sewer Improvement Tax District No. 1 pursuant to Minnesota Statutes, Section 444.17 and Ordinance No. 1600 adopted by the City on October 12, 1982. Financing of the construction costs for establishment of this district was provided by issuing the $205,000 General Obligation Storm Sewer Bonds of 1982. The bonds mature over the next 13 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 1991 to 2003. The original scheduled levies totaled $486,999. NOTE 7 - MF.TROPOi.ITAN 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. 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 de=nined 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 defected 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, 1990 and 1989 were as follows: December 31, 1990 1989 Current value credits $390 $429 .— Debt service credits 89,484 104,045 Deferred charger 2,352 2,705 Total $92,226 $107,179 CITY OF OAK PARK HEIGHTS, MINNESOTA Page 18 of 19 NOTES TO FINANCIAL STATEMENTS December 31, 1990 NOTE 8 - COMPENSATED ABSENCES The accrued liability for compensated absences is recorded as a liability in the General Long -Term Debt Account Group (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 1990 1989 Vacation $2,821 $2,821 $2,267 SeveXence 38,581 38,581 36,201 Total $41,402 $0 $41402 _ $38,468 The City also has an unrecorded contingent liability for unused employee sick leave of $58,965 and $50,437 at December 31, 1990 and 1989, respectively. NOTE 9 - S EGM .N T INFO RMATION The City maintains one Enterprise Fund which provides water and sewer services. Segment information for the year ended December 31, 1990 is as follows: Water Sewer Total Operating Revenue $127,063 $212,448 $339,511 Operating Expenses (before depreciation) 80,797 181,759 262,556 Depreciation 37,508 31,238 68,746 Operating Income (Loss) 8,758 (549) 8,209 Net Income (Loss) 65,514 Current Capital Contributions & Transfers 0 Property, Plant & Equipment Additions (Deletions) 24,979 Net Working Capital (CA -CL) 855,203 - Total Assets 3,403,410 Bonds & Other Material Long -term Liabilities 60,000 Total Equity 3,230,456 • 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. CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS Page 19 of 19 December 31,1990 NOTE 12 - TAX INCREMENT DISTRICT The City established an economic development district, "St. Croix Mall Tax Increment District ", on August 7, 1989. There have been no bonds issued as of December 31, 1990. Current tax capacity $243,805 _ Original tax capacity - adjusted 186,952 Captured tax capacity $56,853 NOTE 13 - CONTRIBUTED CAPITAL A schedule of changes in contributed capital for 1990 is as follows: Water Sewer Total Contributed Capital - January 1 $1,088,611 $1,176,634 $2,265,245 Contributions 0 0 0 Depreciation Expense on Contributed Fixed Assets (28,873) (30,368) (59,241) Contributed Capital - December 31 $1,059,738 $1,146,266 $2,206,004 '-' NOTE 14 - DEFERRED COMPENSATION PLAN Ile City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all employees, permits them to defer a portion of their salary until fugue years. The deferred compensation is not available to the employees until termination, retirement, death or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under the plan), subject only to the claims of the City's general creditors - Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. .... The market value of total remittances at December 31, 1990 was $2,375 which is presented in an Agency Fund in accordance with GASB Statement No. 2. NOTE 15 - PRIOR PERIOD AD.ILISTMENT During 1989 receipts of the Enterprise Fund in the amount of $3,025 were recorded as charges for services. These have been reclassified as meter deposits payable. Amounts previously reported for .— the Year ended December 31, 1989 have been restated as follows: Previously Reported Reclassified Difference Charges for services $6,099 $3,074 ($3,025) Total operating revenue 304,928 301,903 (3,025) Operating income 19,009 15,984 (3,025) Net income 75,130 72,105 (3,025) Net increase in retained earnings 116,965 113,940 (3,025) Retained earnings 12/31/89 902,721 899,696 (3,025) COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 6 -' GENERAL FUND BALANCE SHEET December 31, 1990 With Comparative Totals for December 31, 1989 December 31, Assets 1990 1989 Cash and cash equivalents $398,360 $940,739 Investments 645,192 Accounts receivable 16,899 9,255 Due from other governmental units 3,124 3,912 Due from other funds 4,658 Accounts receivable - certified 940 940 Special assessments receivable 400 Taxes receivable: Delinquent 32,100 29,480 Due from County 52,213 17,355 '- Total assets $1,148,828 $1,006,739 Liabilities and fund balance Liabilities: Accounts payable $42,651 $60,448 Salaries payable 4,163 4,356 Due to other governmental units 3,633 1,825 Deferred revenue 32,100 29,480 Total liabilities 82,547 96,109 Fund Balance: Unreserved: Designated for cash flow 554,000 554,200 Designated for contingent employee benefit 100,400 87,100 Designated for general contingency 227,800 199,400 Designated for ensuing years' budget 48 _ Designated for State aid loss 48,141 Undesignated 87,340 69,930 Total fund balance 1,066,281 910,630 Total liabilities and fund balance $1,148,828 $1,006,739 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, E KPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1990 _ With Comparative Actual Amounts for the Year Ended December 31, 1989 1990 Over (under) 1989 Budget Actual Budget Actual _ Revenue: General property taxes: Current and delinquent $1,108,430 $1,142,175 $33,745 $866,632 Other 595 595 1,788 Total general property taxes 1,108,430 1,142,770 34,340 868,420 Special assessments 0 4,451 Intergovernmental: S tate: Homestead credit 578 578 72,498 Local government aid 101,527 Police aid 23,325 25,049 1,724 24,863 EMS grant 625 Total state 23,325 25,627 2,302 199,513 County: _ Recycling grant 13,913 13,913 5,909 Gravel tax allocation 500 497 (3) 492 Total intergovernmental 23,825 40,037 16,212 205,914 Licenses and permits 42,365 48,870 6,505 20,187 Charges for services: Refuse collection 36,000 43,095 7,095 26,850 Other 3,000 2,741 (259) 2,484 Administrative - Enterprise Fund 57,000 57,000 38,000 Total charges for services 96,000 102,836 6,836 67,334 Fines and forfeits 40,600 42,165 1,565 36,776 _ Interest on investments 40,000 62,064 22,064 53,348 Refunds and reimbursements 600 9,812 9,212 19,423 Sale of property 41 41 3,000 Donations 200 150 (50) 25 Total revenue 1,352,020 1,448,745 96,725 1,278,878 Expenditures: General government: Mayor and council: Current: Personal services 32,600 32,123 (477) 32,801 Contractual services 66,343 66,225 (118) 55,405 Total mayor and council 98,943 98,348 (595) 88,206 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, 1990 With Comparative Actual Amounts for the Year Ended December 31, 1989 1990 Over (under) 1989 Budget Actual Budget Actual Expenditures: (continued) General government: (continued) Elections: Current: Personal services $925 $1,332 $407 Materials and supplies 200 66 (134) Total elections 1,125 1,398 273 $0 City clerk: Current Personal services 112,245 101,917 (10,328) 85,989 '- Materials and supplies 2,800 3,385 585 2,997 Contractual services 3,850 3,804 (46) 2,625 Total current 118,895 109,106 (9,789) 91,611 Capital outlay 500 588 88 655 Total city clerk 119,395 109,694 (9,701) 92,266 Planning and zoning: Current: Contractual services 9,000 7,825 (1,175) 20,648 Municipal Building: Current: Materials and supplies 5,700 5,798 98 4,699 Contractual services 19,000 10,767 (8,233) 8,190 Total current 24,700 16,565 (8,135) 12,889 Capital outlay 24,230 Total city hall 24,700 16,565 (8,135) 37,119 Assessor. Current: Personal services 8,560 8,595 35 7,037 Engineering: Current: Contractual services 12,000 11,577 (423) 1,736 General management: Current: Personal services 14,000 13,751 (249) 12,672 Materials and supplies 2,418 3,688 1,270 3,648 Contractual services 16,425 14,475 (1,950) , 17,498 Total general management 32,843 31,914 (929) 33,818 Total general government 306,566 285,916 (20,650) 280,830 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 Faded December 31, 1990 With Comparative Actual Amounts for the Year Faded December 31, 1989 1990 ^ Over (under) 1989 Budget Actual Budget Actual Expenditures: (continued) Public safety: Police department: Current: Personal services $474,270 $392,515 ($81,755) $362,393 Materials and supplies 19,975 22,772 2,797 18,636 Contractual services 23,250 14,765 (8,485) 12,600 Total current 517,495 430,052 (87,443) 393,629 Capital outlay 36,283 Total police department 517,495 430,052 (87,443) 429,912 Building inspections Current: Personal services 19,315 18,977 (338) Contractual services 555 553 (2) Material and supplies 950 1,279 329 Total current 20,820 20,809 (11) 0 ._ Capital outlay 480 481 1 Total building inspections 21,300 21,290 (10) 0 Fire protection: Current: Contractual services 20,000 14,918 (5,082) 16,700 Total fire protection 20,000 14,918 (5,082) 16,700 Animal control: .W Current: Materials and supplies 50 56 6 63 Contractual services 5,500 3,746 (1,754) 4,385 Total animal control 5.550 3,802 (1,748) 4,448 Total public safety 564,345 470,062 (94,283) 451,060 Streets and highways: Streets and alleys: Current: Materials and supplies 800 327 (473) 930 Contractual services 17,925 13,490 (4,435) 15,041 Total current 18,725 13,817 (4,908) 15,971 Capital Outlay 275 267 (8) .r Total streets and alleys 19,000 14,084 (4,916) 15,971 Snow and ice removal: Current: Materials and supplies Contractual services 17,800 18,944 1,144 26,004 Total snow and ice removal 17.800 18,944 1,144 26,004 Street lighting: Current: Contractual services 40,000 37,085 (2,915) 34,419 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, 1990 With Comparative Actual Amounts for the Year Ended December 31, 1989 1990 Over (under) 1989 Budget Actual Budget Actual Expenditures: (continued) Arboreous: Current: -- Personal services $1,500 $1,500 $2,144 Materials and supplies 75 13 ($62) 72 Contractual services 44 Total aboreous 1,575 1,513 (62) 2,260 Total streets and highways 78,375 71,626 (6,749) 78,654 Sanitation: Refuse collection and disposal: Current: Contractual services 216,300 216,388 88 174,244 Tree removal and planting: Current: Contractual services 15,000 12,287 (2,713) 11,240 Total sanitation 231,300 228,675 (2,625) 185,484 Recreation: Parks, playgrounds and rinks: Current: Personal services 126,100 120,161 (5,939) 103,350 Materials and supplies 4,650 4,912 262 4,401 Contractual services 6,500 4,153 (2,347) 5,511 Total current 137,250 129,226 (8,024) 113,262 Capital outlay 8,100 7,589 (511) 1,763 Total recreation 145,350 136,815 (8,535) 115,025 Contingency: Current: Contractual services 26,084 0 (26,084) Total expenditures 1,352,020 1,193,094 (158,926) 1,111,053 Revenue over expenditures 0 255,651 255,651 167,825 Other increases (decreases): Operating transfer from Capital Project Fund 22,100 Operating transfer (to) Capital Project Fund (100,000) (100,000) (150,000) Total other increases (decreases) 0 (100,000) (100,000) (127,900) Net increase in fund balance $0 155,651 $155,651 39,925 Fund balance - January 1 910,630 870,705 Fund balance - December 31 $1,066,281 $910,630 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 8 DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1990 G.O. Storm Sewer G.O. G.O. G.O. G.O. Totals Improvement Storm Sewer Improvement Improvement Improvement Improvement December 31, Bonds of 1971 Bonds of 1982 Bonds of 1982 Bonds of 1983 Bonds of 1987 Bonds of 1990 1990 1989 Assets Investments $28,105 $8,762 $51,236 $32 ,181 $558,780 $79,514 $758,578 $525,204 Taxes receivable: Delinquent 133 837 388 1,358 1,352 - Due from County 272 1,288 631 2,191 855 Due from other funds 1,019 Special assessments: r Delinquent 67,442 67,442 95,692 Deferred 230 6,600 7,818 91,875 106,523 348,300 Special deferred 14,800 14,800 14,800 Due from County 15,962 15,962 1,605 7 $73„655 S39 „999 $734,059 $79,514 $966,854 $988,827 Total assets ... ,740 ,.. $10,88 ,._,...._1 ._.. r Liabilities and Fund Balance Liabilities: Due to other funds $7440 Deferred revenue $363 $837 $21,788 $7,818 $159,317 $190,123 460,144 Total liabilities 363 837 21 7,818 159,317 $0 190,123 467,584 Fund Balance: Reserved for debt service 28,377 10,050 51,867 32 574,742 79,514 776,731 521,243 Total liabilities and fund balance $28,740 $10, 887 $73,655 $39,999 $734 $79,514 $966,854 $988 r The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 9 DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1990 G.O. Storm Sewer Storm $165,000 G.O. G.O. Improvement Sewer Improvement $80,000 Improvement Improvement Totals ` Bonds Bonds Bonds G.O. Bonds Bonds Bonds December 31, of 1971 of 1982 of 1982 of 1983 of 1987 of 1990 1990 1989 Revenue: General property taxes: Current and delinquent $5,942 $13,808 $19,750 $16,341 Storm Sewer ad valorem taxes: Current $28,286 28,286 26,602 Special assessments: Current and delinquent 267 3,256 $3,030 $140,673 147,226 102,523 Penalties and interest 13,046 13,046 Prepayments 154,310 $38,800 193,110 160,061 Total special assessments 267 0 3,256 3,030 308,029 38,800 353,382 262,584 Intergovernmental• State: Homestead credit 3 18 7 28 3,584 Interest on investments 2,071 736 3,796 2,207 42,722 1,020 52,552 49,637 Total revenue 8,283 29,040 20,867 5,237 350,751 39,820 453,998 358,748 Expenditures: Debt service: Principal 10,000 10,000 15,000 9 200,000 244,000 244,000 Interest 855 17,203 8,263 2,705 47,390 76,416 91,776 ... Paying agent fees 574 459 689 692 2,414 1,793 Total Expenditures 11,429 27,662 23,952 11,705 248,082 0 322,830 337,569 Revenue over ..- (under) expenditures (3,146) 1,378 (3,085) (6,468) 102,669 39,820 131,168 21,179 Other increases (decreases): Bond proceeds 39,694 39,694 Net increase(decrease) in fund balance (3,146) 1,378 (3,085) (6,468) 102,669 79,514 170,862 21,179 " Fund balance - January 1 31,523 8,672 54,952 38,649 387,447 521,243 500,064 Equity transfer - In 84,626 84,626 Fund balance - December 31 $28,377 $10,050 $51,867 $32,181 $574,742 $79,514 $776,731 $521,243 --� The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 10 .. CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1990 St. Croix River Hills Park & Valley Totals Closed Capital Mall Utility & Street Recreation Point December 31, Assets Bond Fund Improvements (TIF) Iingn vements Development 2nd Add. 1990 1989 Investments $788,362 $245,942 $3,521 $37,904 $1,075,729 $986,707 Accounts receivable $373 373 Due from other funds 901 Due from developer 2,746 r Special assessments receivable: Delinquent 4,400 4,400 4,966 Deferred 78,205 78,205 60,307 Due from County 106 106 7,977 Total assets $871,073 $245,942 $0 $373 $3,521 $37,904 $1,158,813 $1,063,604 Liabilities and fund balance Liabilities: Cash overdraft $120,499 $373 $120,872 $2,746 Accounts payable $110 286 $1,350 $6,327 8,073 4,367 Contracts payable $817 4,891 9,705 15,413 19,743 Deposits payable 2,750 2,750 Deferred revenue 82,605 82,605 65,273 Total liabilities 86,172 110 125,676 373 1,350 16,032 229,713 92,129 Fund balance (deficit): Unreserved: Designated for capital improvements 783,019 245,832 2,171 1,608 1,032,630 971,475 Designated for commited contracts 1,882 20,264 22,146 Undesignated (125,676) (125,676) Total fund balance 784,901 245,832 (125,676) 0 2,171 21,872 929,100 971,475 Total liabilities and fund balance $871,073 $245,942 $0 $373 $3,521 $37,904 $1,158,813 $1,063,604 -� The accompanying notes are an integral part of these fimncial 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, 1990 - Closed Capital Completed Bond Fund Improvements Construction Revenue: Special assessments: Current and delinquent $17,812 $119 Penalty and interest 257 Prepayments 771 427 Total special assessments 18,840 $0 546 Interest on investments 59,120 12,077 109 Connection charges 10,950 Other services Refunds and reimbursements Donations and contributions 6,411 Total revenue 88,910 18,488 655 Expenditures: Professional services 8,882 Construction costs 37,288 17,617 2,027 - Total expenditures 46,170 17,617 2,027 Revenue over (under) expenditures 42,740 871 (1,372) - Other increases (decreases): Bond proceeds Operating transfer from General Fund 100,000 - Operating transfer (to) General Fund Operating transfer from Capital Project Fund Operating transfer (to) Capital Project Fund Total other increases (decreases) 0 100,000 0 Net increase (decrease) in fund balance 42,740 100,871 (1,372) Fund balance (deficit) - January 1 736,718 144,961 6,815 Residual equity transfer - In 5,443 Residual equity transfer - Out (5,443) Fund balance - December 31 $784,901 $245,832 $0 The accompanying notes are an integral part of these financial statements CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 11 Swager's River Hills St. Croix Park and Valley Totals 9th Utility and Street Mall Recreation Point December 31, Utilities Improvement (TIF) Development 2nd Add. 1990 1989 (Memorandum Only) $17,931 $18,978 257 1,198 1,541 $0 $0 $0 $0 $0 19,386 20,519 2,207 219 2,127 75,859 117,173 10,950 16,443 373 373 - 47,393 4,112 10,523 20,000 2,207 373 0 4,331 2,127 117,091 221,528 562 2,160 11,604 42,343 373 125,676 236,312 419,293 603,773 562 373 125,676 2,160 236,312 430,897 646,116 1,645 0 (125,676) 2,171 (234,185) (313,806) (424,588) 256,057 256,057 100;000 150,000 (22,100) 200,000 (200,000) 0 0 0 0 256,057 356,057 127,900 1,645 0 (125,676) 2,171 21,872 42,251 (296,688) 82,981 0 0 0 0 971,475 1,268,163 5,443 (84,626) (90,069) $0 $0 ($125,676) $2,171 $21,872 $929,100 $971,475 -- 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, 1990 With Comparative Totals for December 31, 1989 December 31, Assets 1990 1989 Current assets: ' Cash and cash equivalents $864,080 $778,373 Due from other funds 862 Accounts receivable: Customers 89,746 79,372 Certified to County 538 725 Other 970 386 Prepaid MWCC 12,823 12,765 Total current assets 968,157 872,483 Utility plant in service - at cost Buildings and structures 504,040 504,040 Machinery and equipment 86,743 61,765 Distribution and collection system 2,684,671 2,684,670 Total 3,275,454 3,250,475 Less: Allowance for depreciation (840,201) (771,455) Net fixed assets 2,435,253 2,479,020 Total assets $3,403,410 $3,351,503 . Liabilities and fund equity Current liabilities: Accounts payable $8,227 $2,628 Due to other governmental units 15,678 22,858 Accrued interest 1,688 1,997 Meter deposits 67,361 64,079 Bonds payable 20,000 15,000 Total current liabilities 112,954 106,562 Noncurrent liabilities: Bonds payable 60,000 80 Total liabilities 172,954 186,562 Fund equity: Contributions from property owners - net 2,206,005 2,265,245 Retained earnings: Reserved 661,765 661,765 Unreserved 362,686 237,931 Total fund equity 3,230,456 3,164,941 Total liabilities and fund equity $3,403,410 $3,351,503 ' 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, 1990 With Comparative Totals For The Year Ended December 31, 1989 r Totals Water Sewer December 31, '- Operating Operating 1990 1989 Revenue: Customer billings $124,429 $208,481 $332,910 $294,655 r Penalties 1,623 2,747 4,370 3,449 Plumbing permits 308 308 616 336 Refunds and reimbursements 116 355 471 389 Charges for services 587 557 1,144 3,074 Total operating revenue 127,063 212,448 339,511 301,903 Expenses: Contractual services 45,469 13,190 58,659 60,144 MWCC charges 139,861 139,861 129,557 Materials and supplies 6,828 208 7,036 6,208 Administrative and personnel charge 28,500 28,500 57,000 38,000 Depreciation: On purchased assets 7,140 2,365 9,505 10,175 On contributed assets 30,368 28,873 59,241 41,835 Total operating expenses 118,305 212,997 331,302 285,919 Operating income (loss) $8,758 ($549) 8,209 15,984 Other income (expense): Interest on investments 65,193 66,003 Bond interest (7,678) (8,916) Paying agent fees (210) (160) Loss on disposal of assets (806) Total other income 57,305 56,121 Net income 65,514 72,105 Other increases (decreases): Credit arising from transfer of depreciation to Contributions from property owners 59,241 41,835 Net increase in retained earnings 124,755 113,940 Retained earnings - January 1 899,696 785,756 Retained earnings - December 31 $1,024,451 $899,696 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, 1990 With Comparative Totals For The Year Ended December 31, 1989 Totals 1990 1989 Cash Flows from Operating Activities: Operating income $8,209 $15,984 Adjustments to reconcile operating income to net cash from operating activities: a Depreciation 68,746 52,010 Change in assets and liabilities: Decrease (increase) in receivables (9 (10,605) Decrease (increase) in prepaid expenses (58) (3,395) Increase (decrease) in payables 1,701 21,666 Net cash flows from operating activities 68,689 75,660 Cash flows from capital and related financing activities: Acquisition of fixed assets (24,978) (979) Principal paid on revenue bond maturities (15,000) (15,000) Interest and paying agent fees paid on revenue bonds (8,197) (9,076) Net cash flows from capital and related financing activities (48,175) (25,055) Cash flows from investing activities: Interest received on investments 65,193 66,003 Net increase in cash 85,707 116,608 Cash and cash equivalents - January 1 778,373 661,765 Cash and cash equivalents - December 31 $864,080 $778,373 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, 1990 Developers Deferred Totals Deposit Investment Compensation December 31. Assets Fund Fund Fund 1990 1989 _ (Memorandum Cash with escrow $2,375 $2,375 Only) Accrued interest receivable $44,778 44,778 $28,250 -- Accounts receivable $130 130 130 Due from developers 3.332 3.332 4,244 Total assets $3.462 $44.778 $2,375 $50.615 $32,624 Liabilities Cash overdraft $3,384 $44,778 $48,162 $31,399 Accounts payable 825 Deferred Compensation payable $2,375 2,375 Due to developers 78 78 400 r Total liabilities $3.462 $44.778 $2,375 $50.615 $32.624 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA Statement 16 AGENCY FUNDS -- COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For The Year Ended December 31, 1990 r. Balance Balance January 1, December 31, 1990 Additions Deletions 1990 Developers' D=sits Fund: Assets Accounts receivable $130 $0 $0 $130 Due from developers 4,244 1,034 1,946 3,332 Total assets $4,374 $1,034 $1,946 $3,462 Liabilities Cash overdraft $3,149 $15,782 $15,547 $3,384 Accounts payable 825 0 825 0 Due to developers 400 78 400 78 Total liabilities $4,374 $15,860 $16,772 $3,462 Investment Fund: Assets Accrued interest $28,250 $16,528 $0 $44,778 Liabilities Cash overdraft $28,250 $14,138,690 $14,122,162 $44,778 Deferred C ompensation Fund: Assets Cash with escrow agent $0 $2,375 $0 $2,375 Liabilities Deferred Compensation payable $0 $2,375 $0 $2,375 Total A eg ncy@ Assets Cash with escrow $0 $2,375 $0 $2,375 Accrued interest receivable 28,250 16,528 0 44,778 Due from developers 4,244 1,034 1,946 3,332 Accounts receivable 130 0 0 130 Total assets $32,624 $19,937 $1,946 $50,615 Liabilities ` Cash overdraft $31,399 $14,154,472 $14,137,709 $48,162 Accounts payable 825 0 825 0 Deferred compensation payable 0 2,375 0 2,375 Due to developers 400 78 400 78 Total liabilities $32,624 $14,156,925 $14,138,934 $50,615 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, 1990 (UNAUDITED) Balance Balance January 1, December 31, Description 1990 Additions Deletions 1990 Land $50,625 $50,625 Land improvements 49,921 49,921 Buildings and structures 600,043 $4,842 604,885 Machinery and equipment 307,832 13,532 321,364 Furniture and fixtures 34,545 4,610 $120 39,035 Totals $1,042,966 $22,984 $120 $1,065,830 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, 1990 With Comparative Totals For December 31, 1989 r December 31, 1990 1989 Amount Available And To Be Provided For The Retirement of Long -Term Debt Bonds: Amount available in debt service funds $776,731 $521,243 Amount to be provided from future tax levies/ special assessment collections 374,269 573,757 Compensated absences: Amount available in General Fund 41,402 38,468 r Total available and to be provided $1,192,402 $1,133,468 r General Long -Tenn Debt Pavable Bonds payable: General Obligation Bonds: Storm Sewer Bonds $160,000 $170,000 Special Assessment Bonds with Governmental Commitment: G.O. Storm Sewer Improvement Bonds of 1971 10,000 20,000 G.O. Improvement Bonds of 1982 60,000 75,000 G.O. Improvement Bonds of 1983 26,000 35,000 G.O. Improvement Bonds of 1987 595,000 795,000 G.O. Improvement Bonds of 1990 300,E Compensated absenses payable 41,402 38,468 Total general long -term debt payable $1,192,402 $1,133,468 The accompanying notes are an integral part of these financial statements. SUPPLEMENTARY FINANCIAL INFORMATION r CITY OF OAK PARK HEIGHTS, M[NNESOTA Exhibit 1 COMBINED SCHEDULE OF INDEBTEDNESS December 31,1990 '- Final Net Bonds Principal Interest Payment Interest Authorized Retired Outstanding Due Due Dated Due Rate And Issued To Date At 12/31/90 In 1991 In 1991 Bonded Indebtedness Special Assessment Bonds with governmental commitment: General Obligation Storm Sewer Improvement Bonds of 1971 511/11 5/1/91 4.60% $173,000 $163,000 $10,000 $10,000 $285 General Obligation Improvement Bonds of 1982 8/1/82 8/1/93 10.75% 165,000 105,000 60,000 20,000 6,650 . _ General Obligation Improvement Bonds of 1983 12115/83 2/1/93 8.60% 80,000 54,000 26,000 9,000 1,917 General Obligation Improvement Bonds of 1987 7/1/87 12/1/93 5.97% 995,000 400,000 595,000 200,000 35,890 General Obligation Improvement Bonds of 1990 10/1/90 12/1/94 7.08% 300,000 0 300,000 0 22,838 Total special assessment bonds with governmental commitment 1,713,000 722,000 991,000 239,000 67,580 General Debt: Storm Sewer Bonds of 1982 12/1/82 12/1103 10.12% 205,000 45,000 160,000 10,000 16,277 -' Revenue Bonds: General Obligation Water and Sewer Bonds of 1980 10/1/80 10/1/94 750% 200,000 120,000 80,000 20,000 6,750 Total Indebtedness $2,118,000 $887,000 $1,231,000 $269,000 $90,607 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 2 SPECIAL ASSESSMENT DEBT WITH GOVERNMENTAL COMMITMENT ._ SCHEDULE OF DEBT SERVICE PAYMENTS TO MATURITY December 31, 1990 G.O. $165,000 $80,000 $995,000 $300,000 Storm Sewer G.O. G.O. G.O. G.O. Improvement Improvement Improvement Improvement Improvement Bonds Bonds Bonds Bonds Bonds of 1971 of 1982 of 1983 of 1987 of 1990 Total Bonds payable $10,000 $60,000 $26,000 $595,000 $300,000 $991,000 Futute interest payable 285 13.350 3.398 72.070 67.038 156.141 Totals $10.285 $73.350 $29,398 $667.070 $367.038 $1.147.141 Payments to maturity: 1991 $10,285 $26,650 $10,917 $235,890 $22,838 $306,580 1992 24,450 10,121 224,090 69,575 328,236 1993 22,250 8,360 207,090 141,375 379,075 1994 133,250 133.250 Totals $10.285 $73.350 $29.398 $667.070 $367,038 $1,147.141 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 3 -- REVENUE BONDS AND GENERAL DEBT BONDS SCHEDULE OF DEBT SERVICE PAYMENTS TO MATURITY December 31, 1990 Special Taxing District $205,000 Water and Sewer Stone Sewer Revenue Bond Bond of 1982 Bonds payable $80,000 $160,000 Futute interest payable 16,950 126,465 Totals $96,950 $286,465 — Payments to maturity: 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 $96,950 $286,465 CITY OF OAK PARK HEIGHTS, 11NHNNESOTA Exhibit 4 INSURANCE IN FORCE —' December 31, 1990 Coverage Amount Umbrella Liability $1,000,000 _ Package: Property Blanket Building and Contents 1,920,450 Public Liability 600,000 Errors or omissions 600,000 Miscellaneous radio equipment 12,850 Contractors equipment 43,276 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 FUTURE SCHEDULED TAX LEVIES Exhibit 5 December 31, 1990 Special Special Assessment Bonds Taxing District Year Of Year of Bond Issue Storm Sewer Total Collection 1982 1987 1990 Total Bonds of 1982 All Bonds 1991 $16,000 $48,000 $64,000 $27,592 $91,592 1992 8,000 8,000 26,621 34,621 1993 25,597 25,597 1994 $500 500 24,593 25,093 - 1995 23,523 23,523 1996 22,473 22,473 1997 21,397 21,397 1998 25,571 25,571 1999 23,956 23,956 2000 22,333 22,333 2001 20,695 20,695 2002 19,057 19,057 2003 17,404 17,404 Totals $24,000 $48,000 $500 $72,500 $300,812 $373,312 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 6 TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Tax Capacity Values 1990/1991 1989/1990 1988/1984 Taxable Valuations: Real estate $6,685,547 $6,990,588 $7,161,701 Personal property 110,994 124,501 114,560 Fiscal disparity: Contribution (824,162) (611,697) (452,863) Distribution 343,097 314,355 282,761 _ Captured tax increment value (56,853) Total $6,258,623 $6,817,747 $7,106,159 Tax Levy: City Wide: General revenue $1,107,962 $1,156,993 $961,740 - Debt service 64,000 20,000 18,000 Total City Wide 1,171,962 1,176,993 979,740 Storm Sewer District: Storm Sewer Bonds of 1982 27,592 28,563 29,508 Total Tax Levy $1,199,554 $1,205,556 $1,009,248 Gross Tax Capacity Rate: City Wide: General revenue 17.003% 17.100% 13.528% Debt service 0.983 0.309 0.253 Total City Wide 17.986 17.409 13.781 Storm Sewer District: Storm Sewer Bonds of 1982 0.634 0.603 0.629 Total Tax Capacity Rate 18.620% 18.012% 14.410% CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 7 DEBT SERVICE ESCROW AGENT ACCOUNT STATEMENT OF CHANGES IN CASH AND INVESTMENTS For The Year Ended December 31, 1990 Cash and investments (at cost) - January 1, 1990 $242,350 _ Additions: Interest received on investments 40,648 Deductions: Sale of investments (60,000) Bond interest and paying agent fees (26,635) Cash and investments (at cost) - December 31, 1990 $196,363 i CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 8 DEBT SERVICE ESCROW AGENT ACCOUNT BONDSPAYABLE December 31, 1990 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 $270,000 $200,000 $470,000 Future interest payable 51,935 44,271 96,206 Totals $321,935 $244,271 $566,206 Year of maturity 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 $321.935 $244,271 $566,206 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 9 SCHEDULE OF CONSTRUCTION COSTS December 31, 1990 Legal, and Current Prior Capital Improvements Fund: Contractor Eneineer Fiscal Other Total Year Years City Hall Expansion $396,090 $46,041 $50 $41,505 $483,686 $11,269 $472,417 Park Improvements 6.348 6348 6.348 0 Total 396,090 46,041 50 47,853 490,034 17,617 472,417 Closed Bond Fund/ Completed Construction Fund: County Seat Estates 63,153 14,180 500 6,316 84,149 8,012 76,137 Valvoline Rapid Oil 28,939 1,307 992 65 31,303 31,303 0 River Hills Utility and Street Imp. 20,819 107 146 21,072 373 20,699 St. Croix Mall (TIF) Street improvement 97,816 21,488 640 5,732 125,676 125,676 0 Valley Point 2nd Addition 194.097 32.861 1.764 7.590 236312 236.312 0 — Total - All Funds $780.095 $136.696 $4.053 $67.702 $988546 $419.293 $569.253 CITY OF OAK PARK HEIGHTS, MINNESOTA Exhibit 10 SCHEDULE OF SOURCES AND USES OF FUNDS FOR ST. CROIX MALL TAX INCREMENT DISTRICT December 31, 1990 r Accounted Original for in Current Amount Budget Prior Years Year Remaining Sources of funds: Tax increments received $960,000 $0 $0 $960,000 Uses of funds: Developer assistance 960,000 0 0 960,000 58th Street improvements 0 125,676 (125,676) Total uses of funds 960,000 0 125,676 834,324 Funds remaining (deficit) $0 $0 ($125,676) $125,676 The City is the administering authority for the St. Croix Mall Tax Increment District. The district was established August 7, 1989 pursuant to MS 469.174 and is scheduled to terminate on December 31, 1998. There have been no bonds issued as of December 31, 1990. -' STATISTICAL SECTION MY OF OAK PARK HEIGHTS, M NNESOTA Table 1 GENERAL AND SPECIAL REVENUE FUNDS EXPENDITURES BY FUNCTION Years 1981 Through 1990 (UNAUDITED) Streets General Public and Capin Year Total Government Safety Highways Sanitation Recreation Outlay 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 1990 1,193,094 285,328 469,581 71,359 228,675 129,226 8,925 CITY OF OAK PARK HEIGHTS, MINNESOTA Table 2 GENERAL AND SPECIAL REVENUE FUNDS REVENUE BY SOURCE Years 1981 Through 1990 (UNAUDITED) Licenses Fines Charges Inter- and and Interest for Year Total Taxes governmental Permits Forfeits Income services Miscellaneous 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 1990 1,448,745 1,142,770 40,037 48,870 42,165 62,064 102,836 10,003 CITY OF OAK PARK HEIGHTS, MINNESOTA '- PROPERTY TAX LEVIES AND COLLECTIONS Table 3 Years 1981 Through 1990 (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 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% 1990 1,205,556 1,177,782 97.70% 13,024 1,190,806 98.78% 33,458 2.78% CITY OF OAK PARK HEIGHTS, MINNESOTA Table 4 SPECIAL ASSESSMENT COLLECTIONS Years 1982 Through 1990 (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 1990 136,458 104,145 76.32% * 61,407 121.32% * 73,320 * Note: Special assessments for 1989 and 1990 include a single assessment roll collectible over five years (1989 through 1993) appropriated to finance the G. O. Improvements Bonds of 1987. Approximately 90% 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 $73,320 at December 31, 1990 include $67,442 from this single developer. Actual versus scheduled collections for this assessment roll have been as follows through December 31,1990: Excess Actual Originally Scheduled Over Year Annually Cummulative Annually Cummulative Scheduled 1987 $128,240 $128,240 $0 $128,240 1988 167,569 295,809 0 295,809 1989 248,017 543,826 260,700 $260,700 283,126 1990 308,029 851,855 245,200 505,900 345,955 1991 229,600 735,500 1992 214,100 949,600 1993 198,500 1,148,100 Based upon the past history of this developer (as shown above) the City expects that the above 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. Remaining unpaid special assessments (including the above delinquencies totaled $159,300 at December 31, 1990.