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HomeMy WebLinkAboutAnnual Financial Report CITY OF OAK PARK HEIGHTS, MINNESOTA ANNUAL FINANCIAL REPORT DECEMBER 31, 1996 CITY OF OAK PARK HEIGHTS, MINNESOTA TABLE OF CONTENTS Organization Independent Auditor's Report General PurDose 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- Individual Fund and Account Grout) Financial Statements, General Fund: Balance Sheet Statement 6 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Statement 7 Special Revenue Fund ® Forfeiture and Seizure Fund: Balance Sheet Statement 8 Statement of Revenue, Expenditures and Changes in Fund Balance Statement 9 Debt Service Funds: Combining Balance Sheet Statement 10 Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 11 Capital Project Funds: Combining Balance Sheet Statement 12 Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 13 CITY OF OAK PARK HEIGHTS, MINNESOTA TABLE OF CONTENTS d{ 'Wi {I; WIIII.Y',1!IIIYILI�41WWl tlVld,l WUlilluul li, dy1JY .ddlliw111IJ11JJiV,W'JWLLJWiI JIi 1, yYIliYWllwWdudWWN1 'lW1V46'W'dIIJ YbWI11VILLIIi'Wd Yli'.dWddtI YWYIYJLLI'J'u4';WJlilu 411'sY W1iIIdiJe6W11YJ4Y; IWWidbu! LUYUWwIYWIWIYtll�li' Jd1VtlI1dLY1YdIIllIIY tY.IWWW4ll6'WIONIIWIl 11uVU1WJ1I,16MlVddY;Y4JIWWOYJa W'11Y1Utl1VWUVlI U'JYW� Enterprise Fund: Balance Sheet Statement 14 Statement of Revenue, Expenses and Changes in Retained Earnings Statement 15 Statement of Cash Flows Statement 16 Agency Funds: Combining Balance Sheet Statement 17 Combining Statement of Changes in Assets and Liabilities Statement 18 General Fixed Asset Account Group: Schedule of General Fixed Assets Statement 19 General Long -Term Debt Account Group: Schedule of General Long -Term Debt Statement 20 Suvolementary Financial Information Combined Schedule of Indebtedness Exhibit 1 Debt Service Payments to Maturity: Revenue Bonds and General Debt Bonds Exhibit 2 Insurance in Force Exhibit 3 Future Scheduled Tax Levies Exhibit 4 Taxable Valuations, Tax Levies and Tax Rates Exhibit 5 Schedule of Construction Costs Exhibit 6 Schedule of Sources and Uses of Funds: St. Croix Mall Tax Increment District Exhibit 7 CITY OF OAK PARK HEIGHTS, MINNESOTA TABLE OF CONTENTS '' I Wit1YVI1IWIlYJIL 'Yil.11illLl'i'uWllL'YIWI'JIIYII IIIYIYII I! WIi, YWIW114MYiliYeII11W1Y�11V4YNtlltlWYUIi111V411 WYIYIIIIIILId411i1V Il4l II!I 11611 JWIIiI,ilYl IlIL4 „IIWIi',WIIII, IYWIWId LuY IUWILVU!IYYYYI WIIIWIJ'eW4 Ylltll, Y'tl I,IIY4!YIYeIJI IW YIIIW YI,WILdIINILl ,11 �IiIW1Y1V11Y,e,WIJI IIIJIIdYWI1, W1Y1d111 'ullldY,l,bllWi��LYYJ11,lY IYdII111YJ, Jlul, JOWVIIiYYI IIYtl�WY'�YIJ'JYIIIIYJIlWY41,tl, 11 Statistical Section General and Special Revenue Funds - Expenditures by Function - Years 1987 through 1996 Table 1 General and Special Revenue Funds - Revenue by Source - Years 1987 through 1996 Table 2 Property Tax Levies and Collections - Years 1987 through 1996 Table 3 Special Assessment Collections - Years 1987 through 1996 Table 4 Principal Taxpayers Table 5 CITY OF OAK PARK HEIGHTS, MINNESOTA ORGANIZATION December 31, 1996 Tenn Expires Mayor: David Schaaf December 31, 1998 Council Members: Janet Robert December 31, 1998 Mark Swenson December 31, 1998 David Beaudet December 31, 2000 Jerry Turnquist December 31, 2000 Administrator - Treasurer: Mike Robertson Appointed Deputy Clerk/Finance Director: Judy Holst Appointed This page intentionally left blank. 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', r = - `— ;.. s m fr - Y 9, " it X7 5 - < # a , z x e, :z — € € This page intentionally left blank. 4 GENERAL PURPOSE FINANCIAL STATEMENTS 5 CITY OF OAK PARK HEIGIITS, N 1NNNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1996 With Comparative Totals For December 31, 1995 Governmental Fund Types Special Debt Assets General Revenue Service Cash and investments $1,453,511 $6,334 $495,055 Assets held with deferred compensation plan administrator - - - Accrued interest receivable - - - Accounts receivable 27,204 - - Due from other governmental units 13,238 - _ Due from developers - _ - Prepaid items - - Inventory 4,294 - - Taxes receivable: Delinquent 17,859 - 337 Due from County 5,068 - 88 Special assessments receivable -- - 442,431 Fixed assets (net of accumulated depreciation) - ° - Amount available in debt service fund - Amount to be provided for retirement of general long -term debt - _ - Total assets $1,521,174 $6,334 $937,911 Liabilities, Equity and Other Credits Liabilities: Cash overdraft $ ° $ $ Escrow deposits payable - - - Accounts payable 81,522 Salaries payable 6,695 ° Contracts payable ° Due to other governmental units 2,505 - Judgment payable 100,000 Deferred compensation payable _ _ _ Due to developers - _ Compensated absences payable _ _ _ Contract for deed - _ _ Bonds payable - - _ Deferred revenue 17,859 - 441,603 Total liabilities 208,581 0 441,603 Equity and other credits: Invested in general fixed assets - - - Contributions - net - - Retained earnings: Reserved _ ° _ Unreserved _ _ _ Fund balance: Reserved _ ° 496,308 Unreserved: Designated 1,312,593 6,334 - Undesignated _ _ Total equity and other credits 1,312,593' 6,334 496,308 " Total liabilities, equity and other credits $1,521,174 $6,334 $937,911 6 The accompanying notes are an integral part of these financial statements. Statement 1 I i41 id.44CWWWJYWYI IIY' J4YYWIYWWL,W{1JWIIIm,dIl4JN11YY UYduWILmWJi WY dWWIlYWIYJYIWIIWII, YWYIW,JILWIIIIJIYWIiWJIYWIi1J OYIY tllidd'JILWIIIL,YJiillYllliJJ WluduJJ lJi li liYJ, Ili1W111141iWYWYYYIIYY' JY1414Y1111 'o1J'JYWilAllil'eWIIWIUIIIiI IlYUY1411L6YWYlYY I,IlYL 111YiJYWlliduJiwd11YY1WYWYY11 WY11111 1Y' YIIIU1L41JIJILLJilWW1YJWIJ' d' 1YIWYillllll' I4iWYYllu' IWIWa1lYWYY' eJYtlYWWYLIWll, LLYWY' WIIIIIILWIYIY4IYY 'Yld'J4WWWiJY1WY'WYULWYId 1111 Proprietary Fiduciary Account Groups - Totals capital Fund Type Fund Type General General Long- (Memorandum Only) Project Enterprise Agency Fixed Assets - Term Debt 1996 1995 $3,101,170 $512,062 $33,000 $ - $ - $5,601,132 $5,199,858 - 215,653 - - 215,653 168,958 - 66,932 - - 66,932 45,796 141,296 - - - 168,500 149,629 - 900 - - - 14,138 242,431 85,353 - 7,860 - - 93,213 78,392 - 23,238 - - - 23,238 20,627 4,294 5,138 - 18,196 18,813 - - 5,156 8,397 349,269 - - - - 791,700 975,633 - 3,977,226 - 1,770,837 - 5,748,063 5,727,887 - _ _ 496,304 496,304 440,053 - - 1,838,970 1,838,970 2,009,172 $3,535,792 $4,654,722 $323,445 $1,770,837 $2,335,274 $15,085,489 $15,090,784 $33,706 $ $73,932 $ - $ - $107,638 $132,893 - - 33,000 - - 33,000 - 5,863 3,649 547 - - 91,581 87,730 157,414 - - - - 164,109 6,633 - - _ _ _ - 191,521 39,012 - - - 41,517 44,022 - - - - 100,000 - 215,653 - - 215,653 168,958 313 - - 313 1,227 80,274 80,274 74,225 - 40,000 40,000 - - _ _ _ 2,215,000 2,215,000 2,375,000 348,598 - - - - 808,060 1,006,926 545,581 42,661 323,445 0 2,335,274 3,897,145 4,089,135 - - 1,770,837 - 1,770,837 1,659,455 - 3,736,928 - - - 3,736,928 3,835,253 - 661,765 - - - 661,765 661,765 - 213,368 - - - 213,368 192,955 - _ _ - - 496,308 440,053 2,990,211 - - - - 4,309,138 4,205,208 - - - - ° - 6,960 2,990,211 4,612,061 0 1,770,837 0 11,188,344 11,001,649 $3,535,792 $4,654,722 $323,445 $1,770,837 $2,335,274 $15,085,489 $15,090,784 The accompanying notes are an integral part of these financial statements. 7 CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND Statement 2 CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 31, 1995 Totals Special Debt Capital (Memorandum Only) General Revenue Service Project 1996 1995 Revenue: General property taxes $1,390,443 $ - $23,789 $89 $1,414,321 $1,378,517 Tax increment taxes - - - 142,586 142,586 154,306 Special assessments - - 155,514 79,699 235,213 216,339 Intergovernmental 145,741 - 1,167 - 146,908 375,845 Licenses and permits 156,181 - - - 156,181 117,511 Charges for services 230,579 - - - 230,579 241,874 Fines and forfeits 56,545 - - - 56,545 49,020 Interest on investments 56,468 400 24,522 166,637 248,027 235,688 Connection charges - - - 206,621 206,621 269,212 Other charges - - - 13,258 13,258 954,221 Escrow investment earnings - - - 207 207 44,584 Refunds and reimbursements 45,268 1,680 - 394,307 441,255 10,308 Donations and contributions 1,600 - - 11,520 13,120 153,304 Other 8,742 3,850 - - 12,592 40,224 Total revenue 2,091,567 5,930 204,992 1,014,924 3,317,413 4,240,953 Expenditures: Current: General government 441,852 - - - 441,852 398,640 Public safety 791,916 4,641 - - 796,557 724,112 Streets and highways 136,611 - - - 136,611 86,000 Sanitation 434,175 - - - 434,175 344,396 Recreation 185,372 - - - 185,372 178,567 Capital outlay 34,645 3,751 - 95,666 134,062 64,060 Debt service: Principal - - 160,000 - 160,000 1,160,000 Interest - - 108,737 - 108,737 151,647 Paying agent fees - - - - - 1,234 Professional services - - 42,545 42,545 - Developer assistance - - 85,551 85,551 - Construction costs - _ - 737,050 737,050 2,732,347 Total expenditures 2,024,571 8,392 268,737 960,812 3,262,512 5,841,003 Revenue over (under) expenditures 66,996 (2,462) (63,745) 54,112 54,901 (1,600,050) Other financing sources (uses): Bond proceeds - - - - - 1,125,780 Operating transfers from other funds - - 120,000 183,324 303,324 949,978 Operating transfers to other funds e (35,000) - - (170,000) (205,000) (851,654) Total other financing sources (uses) (35,000) 0 120,000 13,324 98,324 1,224,104 Net increase (decrease) in fund balance 31,996 (2,462) 56,255 67,436 153,225 (375,946) Fund balance - January 1 1,280,597 8,796 440,053 2,922,775 4,652,221 5,028,167 Residual equity transfer in - - - - - 44,900 Residual equity transfer out _ - _ - _ (44,900) Fund balance - December 31 $1,312,593 $6,334 $496,308 $2,990,211 $4,805,446 $4,652,221 8 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGFITS, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND Statement 3 CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND For The Year Ended December 31, 1996 With Comparative Actual Amounts For The Year Ended December 31, 1995 'II I I'lil ', 4YWIIWIIUWJLdIIWYJlltlIiYJIWulIiLL ;YJitlli dll.Y.1.'I.IU1V.ull IIUI 1 IV 11,4u1 „IJ Ill,nii 1 alll'i,i'J, IWJU u1dI11Y1, f JU IIYW114, 111111 WIJIII „Y;IIdJJJJ11;1IJ4111Y11 Y.1YIY;1I JI IIJJ I'IIlv1YW,VJWY LLIWLI IJYYNdVY1LtllYIIYIIII IIiYYNYJYIY111YI111YIII1' IYYI\ utlYIItlW1YYJIItl1011W1iJY111YI1tlWYYIWYYYWIIIWJIJ ;VIJILLIpIYL1YN'J, YW Ili 4YYWYJII 1996 Over (Under) 1995 Budget Actual Budget Actual Revenue: General property taxes $1,367,545 $1,390,443 $22,898 $1,354,677 Intergovernmental 140,280 145,741 5,461 144,480 Licenses and permits 109,170 156,181 47,011 117,511 Charges for services 239,850 230,579 (9,271) 241,874 Fines and forfeits 51,100 56,545 5,445 49,020 Interest on investments 45,000 56,468 11,468 54,917 Refunds and reimbursements 14,430 45,268 30,838 - Donations and contributions 1,600 1,600 - - Other - 8,742 8,742 37,524 Total revenue 1,968,975 2,091,567 122,592 2,000,003 Expenditures: Current: General government 440,390 441,852 1,462 398,640 Public safety 797,260 791,916 (5,344) 723,034 Streets and highways 91,000 136,611 45,611 86,000 Sanitation 369,000 434,175 65,175 344,396 Recreation 197,575 185,372 (12,203) 178,567 Capital outlay 38,750 34,645 (4,105) 61,604 Total expenditures 1,933,975 2,024,571 90,596 1,792,241 Revenue over expenditures 35,000 66,996 31,996 207,762 Other financing sources (uses): Operating transfers from other funds - - - 35,000 Operating transfers to other funds (35,000) (35,000) - (160,000) Total other financing sources (uses) (35,000) (35,000) 0 (125,000) Net increase in fund balance $0 31,996 $31,996 82,762 Fund balance - January 1 1,280,597 ® 1,197,835 Fund balance - December 31 $1,312,593 $1,280,597 The accompanying notes are an integral part of these financial statements. 9 CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENSES AND Statement 4 CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPE For The Year Ended December 31, 1996 With Comparativ Am ount s F or T he Year Ended December 31, 1995 Enterprise Fund 1996 1995 Operating revenue: Customer billings $494,369 $444,981 Penalties 8,656 6,402 Plumbing permits 1,860 1,350 Meter sales 5,580 5,954 Charges for services 2,010 1,578 Total operating revenue 512,475 460,265 Operating expenses: Contractual services 61,731 47,207 Refunds and reimbursements 606 - MCES charges 266,494 207,485 Materials and supplies 7,719 5,535 Administrative and personnel charges 98,850 95,000 Depreciation 108,564 108,242 Total operating expenses 543,964 463,469 Net income (loss) from operations (31,489) (3,204) Other income: Interest on investments 31,201 33,533 Refund of prior SAC charges 20,700 - Gain on disposal of assets - 21,893 Total other income 51,901 55,426 Net income before operating transfers 20,412 52,222 Operating transfers to Capital Project Fund (98,324) (98,325) Net income (loss) (77,912) (46,103) Other increases: Credit arising from transfer of depreciation to contributions from property owners 98,325 98,325 Net increase in retained earnings 20,413 52,222 Retained earnings - January 1 854,720 802,498 Retained earnings - December 31 $875,133 $854,720 10 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED STATEMENT OF CASH FLOWS - Statement 5 PROPRIETARY FUND TYPE For The Year Ended December 31, 1996 With Comparative Amounts For The Year Ended December 31, 1995 Enterprise Fund 1996 1995 Cash flows from operating activities: Operating income (loss) ($31,489) ($3,204) Refund of prior SAC charges 20,700 Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation 108,564 108,242 Change in assets and liabilities: Decrease (increase) in receivables (22,081) 32,018 Decrease (increase) in prepaid expenses (2,611) (7,397) Increase (decrease) in payables (443) 23,671 Net cash flows from operating activities 72,640 153,330 Cash flows from noncapital financing activities: Operating transfers to other funds (98,324) (98,325) Cash flows from capital and related financing activities: Acquisition of fixed assets (17,358) 15,111 Cash flows from investing activities: Interest received on investments 31,201 33,533 Net increase ( decrease) in cash and cash equivalents (11,841) 103,649 Cash and cash equivalents - January 1 523,903 420,254 Cash and cash equivalents - December 31 $512,062 $523,903 Significant noncash investing, capital and financing activities: During 1995 and 1996, fixed assets were contributed to the Enterprise Fund in the amount of $0 and $0, respectively. The accompanying notes are an integral part of these financial statements. 11 This page intentionally left blank. 12 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 m" "uLau adwaauaw^ ,.. " ,"" "• , " "'1alLYWb..J.WLu ""^ "„ °..• ^"Wwa:.J:.i gym y..:rv,^ °, w , „ a u, u,rwas deu9liWUauinmt' uiwuwYOruunWUidu,u:4oauru41 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Oak Park Heights operates under the State of Minnesota Statutory Plan A form of government. The governing body consists of a five member City council elected by voters of the City. The financial statements of the City of Oak Park Heights have been prepared in conformity with generally accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies. A. FINANCIAL REPORTING ENTITY As required by generally accepted accounting principles, the financial statements of the reporting entity include those of the City of Oak Park Heights (the primary government) and its component units, entities which the City is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the City's operations and so data from these units are combined with data of the primary government. Blended Component Unit, The BRA of the City of Oak Park Heights is a separate legal entity which is authorized to expend monies generated by the City's tax increment district. The City council also serve as HRA board members. The transactions of the BRA are confined to the St. Croix Mall TIF Capital Project Fund. Be FUND ACCOUNTING 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. Special Revenue Funds - to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. Debt Service Funds - to account for the accumulation of resources for, and the payment of, general long -term debt principal, interest, and related costs. Capital Proiect Funds - to account for financial resources to be used for the acquisition or construction of major facilities other than those financed by Proprietary Funds. 13 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 W _.._....._.._.._ 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 revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. FIDUCIARY FUNDS Trust and Aaencv Funds - to account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds. These include (a) expendable trust funds, (b) nonexpendable trust funds, (c) pension trust funds, and (d) agency funds. ACCOUNT GROUPS The governmental fund types are designed to account for the financial flow of a particular fund; therefore, they generally include only current assets and current liabilities on their balance sheets. The City maintains two account groups to account for noncurrent assets and long -term liabilities as follows: General Fixed Assets - The City maintains a separate account group which contains 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 Lona -Term Debt - This account group contains the long -term obligations of the City including general obligation bonds, certificates of indebtedness, contracts payable and compensated absences payable. These long -term liabilities are expected to be financed by the governmental funds. C. BASIS OF ACCOUNTING 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 resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. All Proprietary Funds are accounted for on a flow of economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with this activity are included on their balance sheets. Their reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. 14 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 The modified accrual basis of accounting is followed by the City for its Governmental Funds and Fiduciary 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. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Major revenue sources susceptible to accrual include property taxes (excluding delinquent taxes received over 60 days after year end), 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. Expenditures are generally recognized in the accounting period when the fund liability is incurred, except for interest on general long -term debt which is recognized when due. 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. Governmental Accounting Standards Board (GASB) Statement #20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that Use Proprietary Funds provides proprietary activities with a choice of authoritative guidance issued after November 30, 1989. The City of Oak Park Heights has elected to follow GASB pronouncements exclusively after that date. The government reports deferred revenue on its combined balance sheet. Deferred revenues arise when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when resources are received by the government before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the government has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized. The City has reported as deferred revenues the amount of $808,060, which consists of the following: Property taxes receivable $18,196 Special assessments receivable 789,864 Total $808,060 D. BUDGETS Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the General Fund. The City does not adopt a budget for the Special Revenue Fund and accordingly the combined statement of revenue, expenditures and changes in fund balance - budget and actual (Statement 3) excludes amounts relating to this unbudgeted fund. Budgeted amounts are reported as originally adopted, or as amended by the City Council. Individual amendments were not material in relation to the original appropriations which were adjusted. Budgeted expenditure appropriations lapse at year end. 15 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 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 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 management. E. LEGAL COMPLIANCE - BUDGETS The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Administrator submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of a resolution on a departmental basis and can be expended by each department based upon detailed budget estimates for individual expenditure accounts. 4. The department heads are authorized to transfer appropriations under $500 within any department budget. Additional interdepartmental or interfund appropriations and deletions are or may be authorized by the City Council with fund (contingency) reserves or additional revenues. 5. Formal budgetary integration is employed as a management control device during the year for the General Fund. 6. Legal debt obligation indentures determine the appropriation level and debt service tax levies for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to determine and calculate user charges. These debt service and budget amounts represent general obligation bond indenture provisions and net income for operation and capital maintenance and are not reflected in the financial statements. 7. A capital improvement program is reviewed annually by the City Council for the Capital Project Funds. However, appropriations for major projects are not adopted until the actual bid award of the improvement. The appropriations are not reflected in the financial statements. 8. Expenditures may not legally exceed budgeted appropriations at the total fund level. Monitoring of budgets is maintained at the expenditure category level (i.e., personal services; material and supplies; contractual services; capital outlay) within each department. 9. The City Council may authorize transfer of budgeted amounts between City funds. F. CASH AND INVESTMENTS Cash and investment 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 16 the fund's equity in the cash and investment pool. CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 YJL'!WLLiLllti+ L ILL I lII I 'II II' iu " I "I" iI I'd IIII I"IIlIlI III I L I I Ill Ll 11di1dI'119i11& 11 d IIIA I'll ll IIIIi'II,[I,I,l01 YWIIIIll01 Ill Ill 1. lb III 1'I LIME III 11 Ill 11 111 A ILL" II 11110, , 1111 !,1 RI I III J I Ill 11111,ILAII1I Ill , Y, Ill lI!IIIII I110111111'1 +J k0liI Lill IV14JV11YIIIWI Investments are stated at cost (plus interest added, if any) which approximates market value except for assets of the Deferred Compensation Plan which are reported at market value. Material purchase discounts and premiums are amortized over the term of the investment. Interest earnings are accrued at the balance sheet date. For purposes of the statement of cash flows the Enterprise Fund considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the Enterprise Fund have original maturities of 90 days or less. Therefore the entire balance in the fund is considered cash equivalents. G HOMESTEAD CREDIT AND AGRICULTURAL. CREDIT AID (HACA) Property taxes on homestead property (as defined by State Statutes) are partially reduced by HACA. This credit is paid to the City by the State in lieu of taxes levied against homestead property. The State remits this credit through installments each year. The credit is recognized as revenue by the City at the time of collection. He LOCAL GOVERNMENT AID REVENUE RECOGNITION Local government aid is provided to the City by the State as a shared tax based upon a statutory formula and without restrictions. Payment from the State is generally received during each calendar year for that 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. L PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the County in December (levy /assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 7 and December 2 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. 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 State credits received by the City in July, December and January are recognized as revenue for the current year. Taxes collected by the County by December 31(remitted to the City the following January) and taxes and credits not received at the year end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred revenue because it is not available to finance current expenditures. 17 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 A&Waldkil,ldldu u l IL 11 Y, 11 11'Ylr.li Jh:1I11AILI I Idl ul'lII1V J, �.I ldJJdlxdl 1111,11111 II tl I 1, 11 IddluIi 0III 0 6 dLIIIIOJII11J IUNIIUII11LIdILLb11JI f, J, 11 LI, 1111L Ih 111111,tl1114"n lbl 11'O,oY u.IIII,IIIIu1IlYJ The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal Disparities Formula) per State Statute 473F. This statute provides a means of spreading a portion of the taxable valuation of commercial/industrial real property to various taxing authorities within the defined metropolitan area. The valuation "shared" is a portion of commercial/industrial property valuation growth since 1971. Property taxes paid to the City through this formula for 1996 and 1995 totaled $64,727 and $53,496, respectively. Receipt of property taxes from this "fiscal disparities pool" does not increase or decrease total tax revenue. J. SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments are collected by the County and remitted by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funds are completely offset by deferred revenues. Once a special assessment roll is adopted, the amount attributed to each parcel is 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 are allowed to go delinquent, the property is subject to tax forfeit sale and 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. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. K INVENTORIES Inventories are valued cost using the first- in/first -out (FIFO) method. The cost of certain governmental fund type inventories are recorded as expenditures when consumed rather than when purchased. 18 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 L. FILED ASSETS GENERAL FIXED ASSETS General fixed assets are recorded as expenditures of the Governmental Funds at the time of purchase. Such assets are capitalized at historical cost or estimated historical cost in the General Fixed Asset Account Group. Public Domain ( "infrastructure ") general fixed assets consisting of roads, bridges, curbs, gutters, streets, sidewalks, drainage systems and lighting systems are excluded from general fixed assets as these assets are immovable and of value only to the City. 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. Interest incurred during construction is not capitalized on general fixed assets. PROPRIETARY FUNDS Fixed assets of the Proprietary Funds are stated at historical cost, estimated historical 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: Buildings and structures 50 years Equipment and machinery 3 -20 years Distribution and collection systems 50 years Fixed assets of the water and sewer utility operations include the water distribution system and sewage collection system. These systems have been wholly (or substantially) financed by non- operating funds (special assessments, general taxes, federal and state grants, and other sources) and contributed to the sewer and water operating funds. City policy is to finance these assets by the sources indicated rather than by user charges. Accordingly, the water and sewer user rates are not established at levels sufficient to cover depreciation on these assets. Depreciation on these assets is shown in the operating statements; however, the depreciation is eventually transferred against the contribution account rather than retained earnings in accordance with generally accepted accounting principles. Consequently, the contribution account reflects the net book value of contributed assets rather than the original cost of such assets. M. COMPENSATED ABSENCES It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. No liability is recorded for unpaid accumulated sick leave, except that portion that is payable as severance. Vested or accumulated vacation leave and other benefit amounts that are expected to be liquidated with expendable available financial resources are reported as an expenditure and a fund liability of the governmental fund that will pay them. Amounts that are not expected to be liquidated with expendable available financial resources are reported in the General Long -Term Debt Account Group. No expenditure is reported for these amounts. 19 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 N. LONG -TERM OBLIGATIONS Long -term debt is recognized as a liability of a governmental fund when due, or when resources have been accumulated in the Debt Service Fund for payment early in the following year. For other long- term obligations, only that portion expected to be financed from expendable available financial resources is reported as a fund liability of a governmental fund. The remaining portion of such obligations is reported in the General Long -Term Debt Account Group. Long -term liabilities expected to be financed from proprietary fund operations are accounted for in those funds. O. FUND EQUITY Contributed capital is recorded in Proprietary Funds that have received capital grants or contributions from developers, customers or other funds. Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. P. INTERFUND TRANSACTIONS Quasi - external transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures /expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures /expenses in the fund that is reimbursed. All other interfund transactions, except quasi - external transactions and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. Q. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the General Purpose Financial Statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or changes in cash flow in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. R. COMPARATIVE DATA Comparative total data for the prior year have been presented m selected sections of the accompanying financial statements in order to provide an understanding of the changes in the City's financial position and operations. Also, certain amounts presented m prior year data have been reclassified in order to be consistent with the current year's presentation. 20 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note 2 DEPOSITS AND INVESTMENTS DEPOSITS In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds (140% in the case of mortgage notes pledged). Authorized collateral includes the legal investments described below, as well as certain first mortgage notes, and certain other state or local government obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. At year end, the carrying amount of the City's deposits was $4,476,494 and the bank balance was $4,522,794. Of the bank balance, $4,375,664 was covered by Federal Depository Insurance or by collateral held by the City's agent in the City's name. Of the remaining balance, $100,830 was uncollateralized. INVESTMENTS Minnesota Statutes authorize the City to invest in the following: a) Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities, or organizations created by an act of congress, excluding mortgage - backed securities defined as high risk. 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, general obligation tax- exempt securities, or repurchase or reverse repurchase agreements. c) General obligations of the State of Minnesota or any of its municipalities. d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System. e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota securities broker - dealers; or, a bank qualified as a depositor. 21 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Balances at December 31, 1996 were: Carrying Market Amount Value Investments: Shared investment pools $1,016,900 $1,005,235 Assets held with deferred compensation plan administrator $215,653 $215,653 At December 31, 1996, the City held no investments subject to credit risk classification. Note 3 FIXED ASSETS A summary of changes in general fixed assets is as follows: Balance Balance 1/1/96 Additions Deletions 12/31/96 Land $134,231 $20,000 a $ - $ 154,231 Land improvements 309,333 11,625 - 320,958 Buildings and structures 810,530 41,517 - 852,047 Machinery and equipment 248,220 30,568 18,636 260,152 Furniture and fixtures 157,141 27,058 750 183,449 Totals $1,659,455 $130,768 $19,386 $1,770,837 A summary of Enterprise Fund fixed assets at December 31, 1996 is as follows: Enterprise Land $60,000 Buildings and structures 1,254,445 Machinery and equipment 126,457 Distribution and collection systems 3,888,442 Total 5,329,344 Less: accumulated depreciation (1,352,118) Net fixed assets $3,977,226 22 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 �WYI' hiWrYnWWwYWYYMW' di4WJYtlYYUYiWYYWuhnuYYJiWWWwYIuf . " ,,,..,., . .. ••, WIUiY4WY UW4YWli "" " iiiWa 'IbLiYYYYWIWYWWYWIIYWWd :. •"" • W4VYWIIW:: L{ WWWWlL1LLLlWWWWi411VW11WL1JWLYWIWB ^. tiliW Ili,. iYUui Note 4 LONGTERM DEBT The following is a schedule of changes in City indebtedness for the year ended December 31, 1996: Balance Balance 1/1/96 Additions Deletions 12/31/96 General Long -Term Debt Account Group: Bonded debt: General obligation $1,245,000 $ - $90,000 $1,155,000 Special assessment bonds 1,130,000 - 70,000 1,060,000 Compensated absences 74,225 6,049 - 80,274 Contract for deed - 60,000 20,000 40,000 Total general long -term debt $2,449,225 $66,049 $180,000 $2,335,274 All long -term bonded indebtedness outstanding at December 31, 1996 is backed by the full faith and credit of the City. The annual requirement to amortize all debt outstanding at December 31, 1996 including interest payments of $571,097 is as follows: Year General Contract Ending Obligation for December 31, Bonds Deed 1997 $312,490 $22,188 1998 308,905 21,094 1999 319,810 - 2000 314,425 - 2001 283,565 - 2002 -2006 1,243,620 - Total $2,782,815 $43,282 It is not practicable to determine the specific year for payment of long -term accrued compensated absences. 23 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Long -term debt at December 31, 1996 is composed of the following: Final Authorized Issue Maturity Interest And Outstanding Date Date Rate Issued 12/31/96 General Long -Term Debt: General obligation bonds: G.O. Water and Sewer Revenue Bonds of 1991 5/01/91 12/01/06 6.51 $1,250,000 $ - G.O. Refunding Bonds of 1992 9/01/92 12/01/00 5.48 150,000 90,000 G.O. Crossover Refunding Bonds of 1993 4/01/93 12/01/06 4.71 1,140,000 1,065,000 Special assessment bonds: G.O. Improvement Bonds of 1995 7/1/95 12/1/05 4.69 1,130,000 1,060,000 Compensated absences 80,274 Contract for deed 40,000 Total general long -tern debt $2,335,274 DEFEASANCE OF DEBT In prior years, the City defeased certain general obligation and other bonds, by placing sufficient assets and/or the proceeds of 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, 1996, $90,000 of bonds outstanding are considered defeased as follows: Issue Amount $900,000 General Obligation Water and Sanitary Sewer Improvements Bonds of 1967 $40,000 $500,000 General Obligation Water and Sanitary Sewer Improvement Bonds of 1968 50,000 $90,000 24 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 6-010 Wmiv,au'JW'u WdueurV,�idlseih ' Iih'u4'Ll:u:lb1111.dl �llYl.IVJI'.YhihJd: JLI! ffiaol6Ylit' JLLL4WtWillYlLLWdlllll' WfW. WY. 1L111uN11 'IIYIII.wWWWdiWull'IIYIiIYf ullVdl'duU INJUdIII! INWWU UWI' I' 11Uih1h 1iLLJ10m1udJ4uu11lYdtl'JIJ'tll 1o11JLIUIWi 4111Y11J1IJ1uul' .IdYUl6JIlil,sluVluhlllwlWhlW� Note 5 LEGAL DEBT MARGIN The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally from property taxes. The City's legal debt margin for 1996 is computed as follows: December 31, 1996 1995__ Market value (for pay 1996) $223,097,480 $214,227,300 Debt limit percentage 2.00% 2.00% Debt limit _ 4,461,950 4,284,546 Amount of debt applicable to debt limit: Total bonded debt 2,215,000 2,375,000 Less: Non applicable debt: Revenue bonds (1,065,000) (1,140,000) Special assessment bonds (1,060,000) (1,130,000) Cash and investments in corresponding Debt Service Funds (26,873) (20,923) Total amount of debt applicable to debt limit 63,127 84,077 Legal debt margin $4,398,823 $4,200,469 Note 6 PENSION PLANS A. Plan Description All full -time and certain part-time employees of the City of Oak Park Heights are covered by defined benefit 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. These plans are established and administered in accordance withMinnesota Statute, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute are covered by the PEPFF. 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 highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. 25 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Two methods are used to compute benefits for PERF's Coordinated and Basic Plan 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 Plan 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 Plan 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 Plan members and 1.5 percent for Coordinated Plan members. For PEPFF members, the annuity accrual rate is 2.65 percent for each year of service. For all PEPFF members and for PERF members whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. A reduced retirement annuity is also available to eligible members seeking early retirement. 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. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA, 514 St. Peter Street #200, St. Paul, Minnesota, 55102 or by calling (612)296 ®7460 or 1- 800 -652- 9026. B. Funding Policy Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 8.23% and 4.23 %, respectively, of their annual covered salary. PEPFF members are required to contribute 7.60% of their annual covered salary. The City of Oak Park Heights is required to contribute the following percentages of annual covered payroll: 10.73% for Basic Plan PERF members, 4.48% for Coordinated Plan PERF members, and 11.40% for PEPFF members. The City's contributions for the years ending June 30, 1996, 1995, and 1994 were $60,609, $55,796 and $55,918, respectively, equal to the contractually required contributions for each year as set by state statute. 26 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note 7 METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES During 1971, 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 merged with the Metropolitan Council during 1994 to form Metropolitan Council Environmental Services (MCES). The MCES bills the City annually based upon estimated volume and budgeted costs. These billings are later adjusted when actual volume and actual costs are determined. The adjustment to actual is generally determined in the succeeding calendar year and payable by the City in the second succeeding calendar year. The City follows the accounting policy of recognizing these charges as an expense of the sewer utility operation in the year for which they are billed (for estimated billings) and in the year the adjustments are determined (for adjustments from estimated to actual billings). Future credits and deferred charges are not reflected in these financial statements, as these credits will be offset by annual charges as detailed above. The amounts of these credits at December 31, 1996 and 1995 were as follows: December 31, 1996 1995 Current value credits $147 $186 Debt service credits 21,297 32,845 Deferred charges - 438 Total $21,444 $33,469 Note 8 RECONCILIATION OF CONTRIBUTED CAPITAL Changes to contributed capital during the year are as follows: Depreciation Beginning Capital on Contributed Ending Balance Contributions Assets Balance Water $2,247,054 $ - ($55,486) $2,191,568 Sewer 1,588,198 - (42,838) 1,545,360 Total $3,835,252 $0 ($98,324) $3,736,928 27 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note 9 DEFERRED COMPENSATION PLAN The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The deferred compensation plan is offered by the International City Managers Association and PEBSCO. The plan, available to all employees, permits them to defer a portion of their salary until future 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. Included in the Agency Fund on the combined balance sheet is $215,653 of funds recorded at market value and primarily held by insurance companies in various investment pools for future payment of plan benefits. Note 10 SEGMENT INFORMATION The City maintains one Enterprise Fund which provides water and sanitary sewer services. Segment information for the year ended December 31, 1996 is as follows: Water Sewer Operating Operating Total Operating revenue $184,542 $327,933 $512,475 Depreciation expense 45,149 63,415 108,564 Operating income (loss) 29,630 (61,119) (31,489) Property, plant and equipment additions 17,358 - 17,358 Property, plant and equipment deletions 271 m 271 Operating transfers out 98,324 Net income (loss) (77,912) Net working capital 634,835 Total assets 4,654,722 Total equity 4,612,061 28 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 W',,., '. ., ., ' iidWWaboWdum6, wJlWiY�IYeWi: eb; WYlwiWeulubu' wibuuduidaiuleWwYaliYvl6Y 'JJdld'J4LLiWYY1JWd66 'iPJWIuIC014" Y'a'A4Y'.Y'Ld11YJdJBYW,4 " " " " " °" "a'u e.'u'u ° 1LLLL1W ':' dY1�ilYIWl4u' IVllillbLLhIIYIfWYWWLWdlleYdW4b5WIdilWdllYilllfBiW , WiJdhlYlWiYYtllWdlidd 4 hbSlWd� Note 11 TAX INCREMENT DISTRICTS 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, 1996. Taxes Payable in 1996 Current net tax capacity $385,283 Original net tax capacity (as adjusted) (230,195) Retained captured net tax capacity $155,088 Note 12 SPEC TAXING DISTRICT The City Council of Oak Park Heights established Storm Sewer Improvement Tax District No. 1 pursuant to Minnesota Statutes, Section 444.17 and Ordinance No. 1600 adopted by the City on October 12, 1982. Financing of the construction costs for establishment of this district was originally provided by issuing the $205,000 General Obligation Storm Sewer Bonds of 1982. These bonds were entirely refunded in 1992 by the $150,000 G.O. Refunding Bonds of 1992. The refunding bonds mature over the next seven years with final payment due in 2000. 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 1995 to 2000. The original scheduled levies totaled $198,000. Note 13 DEFICIT FUND BALANCES/RETAINED EARNINGS The following funds had a fund deficit at December 31, 1996: Capital project funds: 58th Street Improvement Phase 111 $27,414 West Frontage Road Connection 947 Interim Construction 1,386 Note 14 CONTINGENCIES The City attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance, of an immaterial amount; or in the judgment of the City attorney, remotely recoverable by plaintiffs. 29 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 YYY4VwWWWU' J:+ 146WxuWadau 'uluuwkeaLJWb'ausJU awlnYLaeiLwl 'awuYiYewdmulJYl:w1:u:1 6a Wtilu' oaVldluL4: uudWW4 'aLiW'Wwi,ad'uW'1'ul'u4V "•' • "' " „' ” „ " ' ••, " "•, ". "' •" •" , ' "llYh'Wauuu6u'uW'uLL4WruLUL •,, " „' • ° ° " " Note 15 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT General Obligation bond issues sold by the City are financed by ad valorem tax levies in addition to special assessments levied against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject to cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy any additional taxes found necessary for full payment of principal and interest. These future scheduled tax levies are not shown as assets in the accompanying financial statements. Future scheduled tax levies for all bonds outstanding at December 31, 1996 totaled $577,664. Note 16 DESIGNATIONS AND RESERVATIONS OF FUND EOUITY At December 31, 1996 and 1995 the City had designated and reserved portions of its various fund equities through legal restriction and City Council authorization. Major fund equity appropriations at December 31, 1996 and 1995 are shown on the various balance sheets as segregations of the fund equity. A summary of such designations is as follows: December 31, 1996 1995 General Fund: Designated for cash flow $724,000 $717,000 Designated for contingent employee benefit 197,308 168,606 Designated for general contingency 245,823 292,000 Designated for cooperation study - 2,780 Designated for capital improvements 72,962 58,251 Designated for ensuing year's budget deficit 61,000 - Designated for comprehensive plan 11,500 35,000 Special Revenue Fund: Designated for special revenue program 6,334 8,796 Debt Service Funds: Reserved for debt service 496,308 440,053 Capital Project Funds: Designated for capital improvements 2,991,597 2,922,775 Enterprise Fund: Reserved for debt service reserve 661,765 661,765 Totals $5,468,597 $5,307,026 .q 30 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1996 Note 17 COMMITMENTS Construction commitments at December 31, 1996 were composed of the following: Expended Remaining Contract as of Contract Description Authorized 12/31/96 Commitment Autumn Ridge lst Addition $179,113 $174,171 $4,942 Haase Addition 78,950 54,818 24,132 Autumn Ridge 2nd Addition 363,564 358,830 4,734 Valley View Estates - Phase II 259,194 255,269 3,925 58th Street Improvements 432,635 432,896 (261) Street Reconstruction 1,022,539 980,880 41,659 Brackey Addition 319,967 265,511 54,456 Autumn Ridge 3rd Addition 177,984 149,019 28,965 Note 18 MAJOR TAXPAYER The City has one major taxpayer, Northern States Power, the total tax capacity value for this taxpayer represented approximately 61% of the City's total tax capacity value for taxes payable in 1996. Note 19 RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Workers compensation coverage is provided through a pooled self - insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not subject to a deductible. The City's workers compensation coverage is retrospectively rated. With this type of coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if any, is considered immaterial and not recorded until received or paid. Property and casualty insurance coverage is provided through a pooled self - insurance program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess various amounts. The City retains risk for deductible portions. These deductibles are considered immaterial to the financial statements. Employee health and disability insurance is provided through commercial insurance. For employee health insurance coverage, the City has a deductible of $5,000 per employee with a $47,500 annual maximum. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. 31 This page intentionally left blank. 32 COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS 33 This page intentionally left blank. 34 CITY OF OAK PARK HEIGHTS, MINNESOTA GENERAL FUND Statement 6 BALANCE SHEET December 31, 1996 With Comparative Amounts for December 31, 1995 December 31, Assets 1996 1995 Cash and investments $1,453,511 $1,306,755 Accounts receivable 25,234 27,900 Accounts receivable - certified 1,970 1,614 Due from other governmental units 13,238 10,109 Inventory 4,294 5,138 Taxes receivable: Delinquent 17,859 18,434 Due from County 5,068 8,195 Total assets $1,521,174 $1,378,145 Liabilities and Fund Balance Liabilities: Accounts payable $81,522 $68,389 Salaries payable 6,695 6,633 Due to other governmental units 2,505 4,092 Judgment payable 100 >000 - Deferred revenue 17,859 18,434 Total liabilities 208,581 97,548 Fund Balance: Unreserved: Designated for cash flow 724,000 717,000 Designated for contingent employee benefit 197,308 168,606 Designated for general contingency 245,823 292,000 Designated for cooperation study - 2,780 Designated for capital improvements 72,962 58,251 Designated for ensuing year's budget deficit 61,004 - Designated for comprehensive plan 11,500 35,000 Undesignated - 6,960 Total fund balance 1,312,593 1,280,597 Total liabilities and fund balance $1,521,174 $1,378,145 35 CITY OF OAK PARK HEIGHTS, MINNESOTA GENERAL FUND Statement 7 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 1 of 4 IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts for the Year Ended December 31, 1995 !NAHA I;, lul 111 11 iI!I, , i,i'e11I Ill , I,, ILL lu 1. 11 illl'111',1I 11 i10 IJi III VII 114911,WWI ullll l'lYII IYI'Y Al "Al IIII IIIJIIJIUYW I!u IIw,11, 111a AtlI1tlJlJllllILLYYNYWtlLIIY !YYIIIIWYlVWY11W111411 JUlIWWIIIIILLdI' IVI! Wll4IYIIIWUWLLIdiIYYWWIWIJYIYI; ILVd' WYIIIIWiIIYLWYIIYiIYItl' 1W1 1 11' IYIWYWYWLLiII' uYYIWY' YWiWllll 'uIYYliIJIWIIUI'YltlulludllWW IIIWIi 1996 _ Over (Under) 1995 Budget Actual Budget Actual Revenue: General property taxes: Current and delinquent $1,367,545 $1,368,127 $582 $1,331,499 Payment in lieu of taxes - 7,185 7,185 7,306 Excess TIF - 14,711 14,711 15,872 Other taxes - 420 420 - Total general property taxes 1,367,545 1,390,443 22,898 1,354,677 Intergovernmental: Federal: Safe & Sober 10,690 12,938 2,248 - State: HACA 67,070 67,063 (7) 76,615 Police aid 46,000 52,211 6,211 48,245 County: Recycling grant 15,820 13,300 (2,520) 16,568 Gravel tax allocation 700 229 (471) - Other - miscellaneous - - - 3,052 Total intergovernmental 140,280 145,741 5,461 144,480 Licenses and permits 109,170 156,181 47,011 Charges for services: General government 2,000 2,674 674 2,329 Refuse collection 114,000 103,444 (10,556) 110,021 Inspections - City of Bayport 25,000 25,611 611 34,524 Administrative - Enterprise Fund 98,850 98,850 - 95,000 Total charges for services 239,850 230,579 (9,271) 241,874 Fines and forfeits 51,100 56,545 5,445 49,020 Interest on investments 45,000 56,468 11,468 54,917 Refunds and reimbursements 14,430 45,268 30,838 33,270 Donations and contributions 1,600 1,600 - 200 Sale of property - 8,742 8,742 4,054 Total revenue 1,968,975 2,091,567 122,592 2,000,003 Expenditures: General government: Mayor and council: Current: Personal services 28,595 41,662 13,067 25,396 Contractual services 6,650 4,779 (1,871) 8,331 Total current 35,245 46,441 11,196 33,727 Capital outlay 2,475 2,544 69 2,080 Total mayor and council 37,720 48,985 11,265 35,807 36 CITY OF OAK PARK HEIGHTS, NIINNESOTA GENERAL FUND Statement 7 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 2 of 4 IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts for the Year Ended December 31, 1995 u ' uaw,ul,wud;mldY 1'ILJYIII41tilEiilllll'JV! Uwuslu',m...... OYY,W waoumeuYlrum ,YWuY':1'ulo:uYmluauwlmlmluul Y14'J4JJ!i!4'JIJ,1!Ilu.I IlLildl, li! i, i„ ! u. 1ud: JI '.V:,i.11'LIlll;i:ll!III ei:liiJ 'i;;ill:u uu1L1!Iu,'li,!i u'IIL,I:WJ4I JJIJ1'!il'. \W bILJII:JU 11111114111' i! i14111p. e' J, 11! 11' d,LIJL111;!:41WI.WIJ:11'I i: 4LIIL II,II I:JedLIJ: J\I!itl;;Y!IdIWU1WY{II:IdJYNY1dLY 11411111' d: Wl! 11JW'LWlldl!IW411Y46YJItlY11JelW 1. 1996 ® Over (Under) 1995 Budget Actual Budget Actual Expenditures: (continued) General government: (continued) Elections: Current: Personal services $3,000 $2,611 ($389) $720 Materials and supplies 920 126 _ (794) Total elections 3,920 2,737 _ (1,183) 720 City administrator: - Current: Personal services 171,525 161,248 (10,277) 161,780 Materials and supplies 2,900 3,192 292 2,974 Contractual services 15,000 16,093 1,093 7,727 Total current 189,425 180,533 (8,892) 172,481 Capital outlay 3,075 1,856 6 (1,219) 16,106 Total adrumistrator 192,500 182,389 (10,111) 188,587 Planning and zoning: Current: Personal services 30,000 45,745 15,745 29,698 Municipal building: Current: Materials and supplies 5,000 6,318 1,318 5,132 Contractual services 16,500 19,794 _ 3,294 11,032 Total current 21,500 26,112 4,612 16,164 Capital outlay 3,100 2,263 p (837) 9,548 Total municipal building 24,600 28,375 3,775 25,712 Assessor: Current: Personal services 12,000 13,412 1,412 12,388 Engineering: Current: Contractual services 10,500 5,086 a (5,414) 8,572 General management: Current: Personal services 21,500 13,879 (7,621) 18,885 Materials and supplies 4,450 8,661 4,211 5,052 Contractual services 111,850 _ 99,246 (12,604) 100,953 Total general management 137,800 121,786 (16,014) 124,890 Total general government 449,040 448,515 (525) 426,374 37 CITY OF OAK PARK ]HEIGHTS, .MINNESOTA GENERAL FUND Statement 7 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 3 of 4 IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts for the Year Ended December 31, 1995 AIiJIIJI 6I' LJ, I Will A I ill J. 111, 1,1111 W U J 1 1I1 1 1ildilh: Hill u1I W 1: uu 4VliVd111WI, Otl Will "ll leu' Al I AIL111A I ikJUU1 u-.W 'I, WIhu11WWIVVYYIIVWiIYIVVIW' YIIWIJY( IN11uWill" ' W' Y' YJ01W'{ WIYtlWtlVI10WWY YIYIWImWiVIYIW6iB 1996 ® Over (Under) 1995 Budget Actual Budget Actual Expenditures: (continued) Public safety: Police department: Current: Personal services $625,460 $613,468 ($11,992) $559,697 Materials and supplies 24,050 31,144 7,094 25,343 Contractual services 27, 25,565 (2,275) 22,623 Total current 677,350 - -- - 670,177 (7,173) 607,663 Capital outlay 22,000 w 21,693 (307) 33,320 Total police department 699,350 691,870 (7,480) 640,983 Building inspections: Current: Personal services 58,675 60,721 2,046 66,991 Contractual services 3,200 3,056 (144) 978 Materials and supplies 1,550 1,810 260 897 Total current 63,425 65,587 2,162 68,866 Capital outlay 6,800 6,289 (511) - Total building inspections 70,225 71,876 1,651 68,866 Fire protection: Current: Contractual services 55,235 55,428 193 45,704 Animal control: Current: Materials and supplies 250 105 (145) 55 Contractual services 1,000 619 (381) 746 Total animal control 1,250 724 (526) 801 Total public safety 826,060 819,898 (6,162) 756,354 Streets and highways: Streets and alleys: Current: Materials and supplies 1,500 689 (811) 771 Contractual services 15,325 10,221 (5,104) 8,834 Total streets and alleys 16,825 10,910 (5,915) 9,605 Snow and ice removal: Current: Contractual services 30,000 81,144 51,144 33,816 Street lighting: Current: Contractual services 42,000 42,307 307 40,606 38 CITY OF OAK PARK HEIGHTS, MINNESOTA GENERAL FUND Statement 7 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 4 of 4 IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1996 With Comparative Actual Amounts for the Year Ended December 31, 1995 WI „VUiLial a „I 'i.i I I,Ii,i,u , uiii1,1 I „ V,VuiWU ItI VI Ud IUIdL1t'u VVWU YYU I.4 VY I', 11, uluuu,uuw eul,adwl ur lVlWt JIYi 111. 1' JUuV1YmuWOWIIBJ' uYW' WU1VWUldidlil' u' SWU11WW41' d' IIWYfW11tli1YiItY4YYWIhYid' WYWYWNYYIYWIiIYIVYY 11 YiY1 1 YliWWYIIYgWYWY 111 W 16 ' WOYWIVYYWtlWWLO IWW 1996 Over (Under) 1995 Budget Actual Budget Actual Expenditures: (continued) Streets and highways: (continued) Arborist: Current: Personal services $2,100 $2,225 $125 $1,950 Materials and supplies 75 25 (50) 23 Total arborist 2,175 2,250 75 1,973 Total streets and highways 91,000 136,611 45,611 86,000 Sanitation: Refuse collection and disposal: Current: Court judgment - 100,000 100,000 - Contractual services 356,000 326,036 (29,964) 334,053 Total refuse collection and disposal 356,000 426,036 70,036 334,053 Tree removal and planting: Current: Contractual services 13,000 8,139 (4,861) 10,343 Total sanitation 369,000 434,175 65,175 344,396 Recreation: Parks, playgrounds and rinks: Current: Personal services 182,225 171,282 (10,943) 167,594 Materials and supplies 4,800 5,783 983 4,822 Contractual services 10,550 8,307 (2,243) 6,151 Total current 197,575 185,372 (12,203) 178,567 Capital outlay 1,300 - (1,300) 550 Total recreation 198,875 185,372 (13,503) 179,117 Total expenditures 1,933,975 2,024,571 90,596 1,792,241 Revenue over expenditures 35,000 66,996 e 31,996 a 207,762 Other financing sources (uses): Operating transfers from Capital Project Fund - - - 35,000 Operating transfers to Capital Project Fund (35,000) (35,000) - (160,000) Total other financing sources (uses) (35,000) (35,000) 0 (125,000) Net increase in fund balance $0 31,996 $31,996 82,762 Fund balance - January 1 1,280,597 1,197,835 Fund balance - December 31 $1,312,593 $1,280,597 39 CITY OF OAK PARK HEIGHTS, MINNESOTA SPECIAL REVENUE FUND Statement 8 FORFEITURE AND SEIZURE FUND BALANCE SHEET December 31, 1996 With C omparative Amounts For December 3 1995 Assets 1996 1995 Cash and investments $6,334 $8,796 Total assets $6,334 $8,796 Liabilities and Fund Balance Liabilities: Accounts payable $ - $ Total liabilities 0 0 Fund balance: Unreserved: Designated for special revenue programs 6,334 8,796 Total fund balance 6,334 8,796 Total liabilities and fund balance $6,334 $8,796 40 CITY OF OAK PARK HEIGHTS, IVDNNESOTA SPECIAL REVENUE FUND Statement 9 FORFEITURE AND SEIZURE FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1996 mp December 31, 1995 . .. .. ........ With Compa rative Amounts The Year En Decem � 1996 1995 Revenue: Interest on investments $400 $519 Other refunds and reimbursements 1,680 - Confiscated property 3,850 2,700 Total revenue 5,930 3,219 . Expenditures: Public safety: Current: Materials and supplies 4,641 1,078 Capital outlay 3,751 2,456 Total expenditures 8,392 3,534 Revenue over (under) expenditures (2,462) (315) Fund balance - January 1 8,796 a 9,111 Fund balance - December 31 $6,334 $8,796 41 CITY OF OAK PARK HEIGHTS, ABNNESOTA DEBT SERVICE FUNDS Statement 10 COMBINING BALANCE SHEET December 31, 1996 With Comparative Totals For December 31, 1995 G.O. Revenue Bonds of 1991/ Crossover G.O. G.O. Refunding Refunding Improvement Bonds of 1992 Bonds Bonds Totals Storm Sewer) of 1993 of 1995 1996 1995 Assets - - - Cash and investments $26,873 $256,625 $211,557 $495,055 $440,879 Taxes receivable: Delinquent 337 - - 337 286 Due from County 88 - - 88 145 Special assessments: Delinquent - 25 1,481 1,506 - Deferred - 27,573 412,187 439,760 559,750 Due from County - - 1,165 1,165 - Total assets $27,298 $284,223 $626,390 $937,911 $1,001,060 Liabilities and Fund Balance Liabilities: Accounts payable $ - $ - $ - $ - $971 Deferred revenue 337 27,598 413,668 441,603 560,036 Total liabilities 337 27,598 413,668 441,603 561,007 Fund balance: Reserved for debt service 26,961 256,625 212,722 496,308 440,053 Total liabilities and fund balance $27,298 $284,223 $626,390 $937,911 $1,001,060 42 CITY OF OAK PARK HEIGHTS, MINNESOTA DEBT SERVICE FUNDS Statement 11 COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1996 W C omparative Totals For The Year Ended December 31, 1995 G.O. Revenue Bonds of 1991/ Crossover G.O. G.O. Refunding Refunding Improvement Bonds of 1992 Bonds Bonds Totals (Storm Sewer) of 1993 1995 1996 1995 Revenue: Storm Sewer ad valorem taxes: Current and delinquent $23,789 $ - $ - $23,789 $23,716 Special assessments: Current and delinquent - 25,248 82,769 108,017 26,892 Prepayments - - 47,346 47,346 147,856 Penalties & interest - 12 139 151 - Intergovernmental: State: Homestead credit 1,167 - - 1,167 1,365 Interest on investments 1,349 11,757 11,416 24,522 15,930 Interest on escrow investments _ - - - - 44,154 Total revenue 26,305 37,017 141,670 204,992 259,913 Expenditures: Debt service: Principal 15,000 75,000 70,000 160,000 1,160,000 Interest 5,412 51,830 51,495 108,737 151,647 Paying agent fees - - - - 1,234 Total expenditures 20,412 126,830 121,495 268,737 1,312,881 Revenue over (under) expenditures 5,893 - (89,813) 20,175 (63,745) (1,052,968) Other financing sources: Bond proceeds - - - - 63,324 Transfer from Capital Project Fund - 120,000 - 120,000 95,000 Total other financing sources 0 120,000 0 120,000 158,324 Net increase (decrease) in fund balance 5,893 30,187 20,175 56,255 (894,644) Fund balance - January 1 21,068 226,438 192,547 440,053 1,334,697 Fund balance - December 31 $26,961 $256,625 $212,722 $496,308 $440,053 43 CITY OF OAK PARK BEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1996 With Comparative Totals For December 31, 1995 Park and Revolving Capital Recreation Interim Capital Fund Improvements Development Construction Assets - Cash and investments $1,009,301 $238,786 $275,641 $ - Due from other governmental units - - - - Due from developers - - - Taxes receivable: Delinquent - _ - - Due from County - - - - Special assessments receivable: Delinquent 1,407 - - - Deferred 202,391 - - Special deferred 144,800 - - - Due from County 671 - - - Total assets $1,358,570 $238,786 $275,641 $0 Liabilities and Fund Balance Liabilities: Cash overdraft $ - $ - $ - $ - Accounts payable 1,032 178 - 1,386 Contracts payable 4,219 1,928 - - Deferred revenue 348,598 - - - Total liabilities 353,849 2,106 0 1,386 Fund balance: Unreserved: Designated 1,004,721 _ 236,680 275,641 (1,386) Total fund balance 1,004,721 236,680 275,641 (1,386) Total liabilities and fund balance $1,358,570 $238,786 $275,641 $0 44 Statement 12 Page 1 of 2 AAE St. Croix Valley View West 58th Street Mall River Hills Street East Oaks Estates Frontage Road Renewal and Improvement (TIF) 2nd Addition Reconstruction Swager Krongard Connection Replacement Phase II $64,466 $1,487 $178,299 $41 $ - $ - $942,654 $79,097 776 - - 15,623 - - $64,466 $2,263 $178,299 $41 a $15,623 $0 $942,654 $79,097 $ $ _ $ - $ - $1,852 $947 $ - $ 544 - 1,008 - - 148 2,263 49,044 - 12,763 - - 21,645 0 2,263 49,588 0 15,623 947 0 m 21,793 64,466 - 128,711 41 - (947) 942,654 57,304 64,466 0 128,711 41 0 (947) 942,654 57,304 $64,466 $2,263 $178,299 $41 $15,623 $0 $942,654 $79,097 45 CITY OF OAK PARK HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1996 With Comparative Totals For December 31, 1995 58th Street Autumn Brackey Improvement Ridge Addition Phase III Assets Cash and investments $270 $4,163 $ - Due from other governmental units - - - Due from developers 8,957 16,871 - Taxes receivable: Delinquent - - - Due from County - - Special assessments receivable: Delinquent - - - Deferred - - - Special deferred - - - Due from County - - - Total assets $9,227 $21,034 $0 Liabilities and Fund Balance Liabilities: Cash overdraft $ - $ - $27,414 Accounts payable 47 628 - Contracts payable 8,709 13,962 - Deferred revenue - - - Total liabilities 8,756 14,590 27,414 Fund balance: Unreserved: Designated 471 6,444 (27,414) Total fund balance 471 6,444 (27,414) Total liabilities and fund balance $9,227 $21,034 $0 46 0tateirment 12 Page 2 o 2 AAE _ AoUuanz Autumn Sanitary Storm Haase Ridge Ridge Sewer Water Sewer Totals Addition 2nd Addition 3rd Addition Cuomcc6kon Connection Connection 1096 1995 ' $ - $ - $ - $112,114 $123,021 $71,830 $3,101,170 $2,919,525 - - - - - - - 232,322 3,376 28,715 11`095 - - - 85,353 74,563 - - - - - - ' 03 - - - - - - ' 57 - - - ' - - 1,407 1,318 ' - - - - - 202 269,765 - - - - - - 144,800 144,888 - - - - - - 871 - -- ' - $3,376 $20,715 $11,085 $112,114 $123,021 $71,830 $3,535,702 $3,642,443 - $506 $1,761 $1,220 $ - $ - $ - $33,706 $86,510 107 532 194 - - 59 5,863 13,181 2,741 26,422 9,015 - - 4,103 157,414 191,521 - - - - - - 348,508 428,456 3,354 28,715 11,035 0 U 4,102 545,581 710,668 23 - - 112,114 123,021 67,668 2,900,211 2,922,775 22 O 0 ' 112,114 123,021 . 67,668 _ 2,990,211 _ 2,922,775 $3,378 $38,715 $11,035 $112,114 $123,021 $71,030 $3,535,792 $3,642,443 - / 47 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, 1996 With Comparative Totals For The Year Ended December 31, 1995 Park and Revolving Capital Recreation Interim Capital Fund Improvements Development Construction Revenue: General property taxes: Current and delinquent $89 $ - $ - $ - Tax increment taxes - - - - Special assessments: Current and delinquent 30,012 - - - Penalty and interest 575 - - - Prepayments 49,112 - - - Intergovernmental: Other state revenue - - - - Interest on investments 48,424 14,718 14,501 - Connection charges 60,140 - - - Other charges _ - - - Escrow investment earnings 207 - - - Refunds and reimbursements - 802 - - Donations and contributions - 270 _ 11,250 - Total revenue 188,559 15,790 25,751 0 Expenditures: Professional services 23,787 6,104 411 1,386 Developer assistance - - - - Capital outlay 95,666 - - Construction costs 2,850 9,693 - - Total expenditures 26,637 111,463 411 1,386 Revenue over (under) expenditures 161,922 (95,673) 25,340 (1,386) Other financing sources (uses): Bond proceeds _ - _ _ Operating transfers from General Fund - 35,000 - - Operating transfers from Capital Project Fund 50,000 - - Operating transfers from Enterprise Fund - _ _ - Operating transfers to General Fund - - - - Operating transfers to Debt Service Fund - - - - Operating transfers to Capital Project Fund - - _ Total financing sources (uses) 50,000 35,000 0 0 Net increase (decrease) in fund balance 211,922 (60,673) 25,340 (1,386) Fund balance - January 1 792,799 297,353 250,301 0 Residual equity transfer in - - - - Residual equity transfer out - - - - Fund balance (deficit) - December 31 $1,004,721 $236,680 $275,641 ($1,386) 48 Statement 13 Page &mf 2 AAE St. Croix Valley View West 58th Street Mall River Hills Street East Oaks Estates Frontage Ruml Renewal and Improvement (TIF) 2nd Addition Reconstruction Svw4gez Kzooyuzd Connection Replacement Phase II 142,586 - - - - - - ' - - - - - - - - - - - - ' - - - - - - - - - - - - 1,275 550 10,438 12 ' - 44,878 1,087 - 13`250 - - - - - - - - - - - - - - - - - - 93,386 - - - - - - - - - - ' 143,861 13,808 10,43 12 --- 33,386 O _ 44,878 1,087 - - ' - - 047 - - 05,551 - - - - - - - - - 23,808 34,316 593 _ 33,386 _ - 54,860 ' 85,551 13,808 34,916 503 83,386 947 U 54,860 58,310 0 (23,878) ( 0 (947) 44"878 _ (53,773) - - - - - - - - - - - - - - 98,324 - - - - - - - - - - - - - ' - - - - - ' - - - - - O 0 0 0 0 0 98,324 0 58,310 0 (23,878) (581) O (947) 143,202 (53,773) 6,156 0 152,589 622 0 0 790,452 111,077 - - - - - - - - - - - - - - - - $04,466 $0 $128,711 $41 $0 ($947) $942,654 $57,304 ~- 49 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, 1996 With Comparative Totals For The Year Ended December 31, 1995 ,WU Iiuiili tltl,, tl V i, Itl ', I I lelillli 4tl Id tlYltllJtl lW ll l' YWUeIW tlJl, 11 iI1JIiYIIVI U',IJd i'YtliledW Ul lYd J IW YY YUW,uWIU1ltlllilYl'uWU1WIYlY4 d'WdWWY,WItlItl1uJ YYilIy, YIYJWVIIYYWJYtlIdYYY, YIYI4YIIIiIIUYYIYIIWYLIJ. lYWW1W1YIIi14iWYIWI, 1111iYlYWYIWIWIYWll! itltlIIJ41111Y1111WUYW' tl1YUUYWdYIW4d! dIYUYWIVY1JIi111YIIWU1Wltl1YWlIYYIWibIY11YtlI W' uIYWIWIIduli '1 YIIi 58th Street Autumn Brackey Improvement Ridge Addition Phase III Revenue: General property taxes: Current and delinquent $ - $ - $ - Tax increment taxes - - - Special assessments: Current and delinquent - - - Penalty and interest - - - Prepayments - - - Intergovernmental: Other state revenue - - - Interest on investments 93 4,482 - Connection charges - - - Other charges - - Escrow investment earnings - - Refunds and reimbursements 20,066 99,755 - Donations and contributions - - Total revenue 20,159 104,237 0 Expenditures: Professional services - - - Developer assistance - - - Capital outlay - - - Construction costs 20,066 206,294 21,427 Total expenditures 20,066 206,294 21,427 Revenue over (under) expenditures 93 (102,057) (21,427) Other financing sources (uses): Bond proceeds - - - Operating transfers from General Fund - - - Operating transfers from Capital Project Fund - - - Operating transfers from Enterprise Fund - - - Operating transfers to General Fund - - - Operating transfers to Debt Service Fund - - - Operating transfers to Capital Project Fund - - - Total financing sources (uses) 0 0 0 Net increase (decrease) in fund balance 93 (102,057) (21,427) Fund balance - January 1 378 108,501 (5,987) Residual equity transfer in - - - Residual equity transfer out - - Fund balance (deficit) - December 31 $471 $6,444 ($27,414) 50 Statement 13 Page 2mf 2 AAE Autumn Autumn 3uoibmy Oknzu Iluuue Ridge Bd6go Sewer Water Sewer Totals Addition 2nd Addition 3rd Addition Curuzecboo �000����m' {�no�o600 1996 1995 . _ -Connection $ - $ - $ - $ - $ - $ - $80 $124 - 142,506 154,306 - - - - - - 30,012 18,207 - - - - - - 575 95 - - - - - - 49,112 31,289 - - - - - - - 230,000 13 - - 6,250 10,331 9,585 166,637 164,322 - - - 32,773 51,685 62,023 206,621 269"212 - - - - - - 13,358 954,321 - - - - - - 207 430 635 56,747 182,916 - - - 394,307 10,308 - - - - - - 11,530 153,304 ~_ _-_ 848 56,747 182,916 39,023 6%,O16 71,6087 1,014,024 1,977,818 ' - - - - - 9,910 42,545 33,030 - - - - - - 05,551 92,584 - - - - - - 05,866 - 635 56,747 182,A16 - - 99,459 737,050 _ 2,606,733 - - ' ~--' ' 635 50,747 102,916 0 O 189,360 960,012 2,732,347 13 U 0 39,023 62,016 (37,761) 54,112 (754,529) - - - - - - - 1,002,456 - ' - - ' - 35,000 135,000 - - - - - - 50,000 596,654 - - - ' - - 98,324 98,324 - - - - ' - - (35,008) ' - - (20,0 (100,000) - (120,000) - - - - - - (58,000) (50,000) (656,654) O O U (20,000) (100,0 (50,0 13,324 1,190,788 13 O 0 19,023 (37,984) (87,761) 67/*36 436,251 A 0 O 93,091 161,005 155,429 2,922,775 2,486,524 - - - - - - - 44,900 - - - - - - - (44,900) ' '-- '-- ~ $22 $0 . $0 $112,114 $123,021 $67,688 $2,090,211 . $2,922,775 51 CITY OF OAK PARK HEIGHTS, MINNESOTA ENTERPRISE FUND Statement 14 BALANCE SHEET December 31, 1996 With Comparative Amounts for December 31, 1995 Assets 1996 1995 Current assets: Cash and cash equivalents $512,062 $523,903 Accounts receivable: Customers 123,625 113,807 Certified to County 6,995 6,203 Other 10,676 105 Due from other governmental units 900 - Prepaid MCES 23,238 20,627 Total current assets 677,496 664,645 Fixed assets: Land 60,000 60,000 Buildings and structures 1,254,445 1,254,445 Machinery and equipment 126,457 109,370 Distribution and collection system 3,888,442 3,888,442 Total 5,329,344 5,312,257 Less: Allowance for depreciation (1,352,118) (1,243,825) Net fixed assets 3,977,226 4,068,432 Total assets $4,654,722 $4,733,077 Liabilities and Fund Equity Liabilities: Accounts payable $3,649 $3,174 Due to other governmental units 39,012 39,930 Total liabilities 42,661 43,104 Fund equity: Contributions from property owners - net 3,736,928 3,835,253 Retained earnings: Reserved 661,765 661,765 Unreserved 213,368 192,955 Total fund equity 4,612,061 4,689,973 Total liabilities and fund equity $4,654,722 $4,733,077 52 CITY OF OAK PARK HEIGHTS, NIINNESOTA ENTERPRISE FUND Statement 15 STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1996 With Comparative Totals For The Year Ended December 3 , 1 ,'.. 1995; uWr�;,;r wa,: e:;; W�;r;ve�;Wud,e;�;W�w;; w�d�rddw uovs a W�we,d« WVWi Water Sewer Totals Operating Operating 1996 1995 Revenue: Customer billings $173,420 $320,949 $494,369 $444,981 Penalties 3,521 5,135 8,656 6,402 Plumbing permits 930 930 1,860 1,350 Meter charges 5,580 - 5,580 5,954 Charges for services 1,091 919 2,010 1,578 Total operating revenue 184,542 327,933 512,475 460,265 Expenses: Contractual services 52,196 9,535 61,731 47,207 Refunds and reimbursements 606 - 606 - MCES charges - 266,494 266,494 207,485 Materials and supplies 7,536 183 7,719 5,535 Administrative and personnel charge 49,425 49,425 98,850 95,000 Depreciation: On purchased assets 7,929 2,311 10,240 9,918 On contributed assets 55,486 42,838 98,324 98,324 Total operating expenses 173,178 370,786 543,964 463,469 Operating income (loss) $11,364 ($42,853) (31,489) (3,204) Other income: Interest on investments 31,201 33,533 Refund of prior SAC charges 20,700 - Gain on disposal of assets - 21,893 Total other income 51,901 q 55,426 Net income before operating transfers 20,412 52,222 Operating transfer to Capital Project Funds (98,324) (98,325) Net income (loss) (77,912) (46,103) Other increases: Credit arising from transfer of depreciation to contributions from property owners 98,325 98,325 Net increase in retained earnings 20,413 52,222 Retained earnings - January 1 854,720 802,498 Retained earnings - December 31 $875,133 $854,720 53 CITY OF OAK PARK HEIGHTS, MINNESOTA ENTERPRISE FUND Statement 16 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1996 With Comparative Amounts For The Year Ended December 31, 1995 1996 1995 Cash flows from operating activities: Operating income (loss) (10,789) (3,204) Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation 108,564 108,242 Change in assets and liabilities: Decrease (increase) in receivables (22,081) 32,018 Decrease (increase) in prepaid expenses (2,611) (7,397) Increase (decrease) in payables (443) 23,671 Net cash flows from operating activities 72,640 153,330 Cash flows from noncapital financing activities: Operating transfers to other funds (98,324) (98,325) Cash flows from capital and related financing activities: Acquisition of fixed assets (17,358) 15,111 Cash flows from investing activities: Interest received on investments 31,201 33,533 Net increase (decrease) in cash and cash equivalents (11,841) 103,649 Cash and cash equivalents - January 1 523,903 420,254 Cash and cash equivalents - December 31 $512,062 $523,903 54 CITY OF OAK PARK HEIGHTS, MM AGENCY FUNDS Statement 17 COMBINING BALANCE SHEET December 31, 1996 With Comparative Totals for December 31, 1995 Developer Developer Deferred Deposit Escrow Investment Compensation Totals Fund Fund Fund Fund 1996 1995 Assets Assets held with deferred compensation plan administrator $ - $ - $ $215,653 $215,653 $168,958 Cash and investments - 33,000 - 33,000 - Accrued interest receivable - - 66,932 66,932 45,796 Accounts receivable - - - - Due from developers 7,860 - - 7,860 3,829 Total assets $7,860 $33,000 $66,932 $215,653 $323,445 $218,583 Liabilities Cash overdraft $7,000 $ - $66,932 $ - $73,932 $46,383 Escrow deposits payable - 33,000 - - 33,000 - Accounts payable 547 - - 547 2,015 Deferred compensation payable - 215,653 215,653 168,958 Due to developers 313 - - - 313 1,227 Total liabilities $7,860 $33,000 $66,932 $215,653 $323,445 $218,583 55 CITY OF OAK PARK HEIGHTS, MINNESOTA AGENCY FUNDS Statement 18 COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For The Year Ended December 31, 1996 Balance Balance January 1, December 31, 1996 Additions _ Deletions 1996 Developer Deposit Fund: Assets: Due from developers $3,829 $7,860 $3,829 $7,860 Liabilities: Cash overdraft $587 $6,413 $ - $7,000 Accounts payable 2,015 547 2,015 547 Due to developers 1,227 313 1,227 313 r Total liabilities $3,829 $7,273 $3,242 $7,860 Developer Escrow Fund: Assets: Cash and investments $ - $33,000 $ $33,000 Liabilities: Escrow deposits payable $ - $33,000 $ m $33,000 Investment Fund: Assets: Accrued interest receivable $45,796 $66,932 $45,796 $66,932 Liabilities: Cash overdraft $45,796 $66,932 $45,796 $66,932 Deferred Compensation Fund: Assets: Assets held with deferred compensation plan administrator $168,958 $66,060 $19,365 $215,653 Liabilities: Deferred compensation payable $168,958 $66,060 $19,365 $215,653 Total Agency: Assets: Assets held with deferred compensation plan administrator $168,958 $66,060 $19,365 $215,653 Cash and investments - 33,000 - 33,000 Accrued interest receivable 45,796 66,932 45,796 66,932 Due from developers 3,829 7,860 3,829 7,860 Total assets $218,583 $173,852 $68,990 $323,445 Liabilities: Cash overdraft $46,383 $73,345 $45,796 $73,932 Accounts payable 2,015 547 2,015 547 Escrow deposits payable - 33,000 33,000 Deferred compensation payable 168,958 66,060 19,365 215,653 Due to developers 1,227 313 1,227 _ 313 Total liabilities $218,583 $173,265 $68,403 $323,445 56 C ITY OF OAK PARK HEIGHTS, MINNESOTA SCHEDULE OF GENERAL FIXED ASSETS Statement 19 For The Year Ended December 31, 1996 IWWI bWeuiWU' , VYIIIYIl1udV111LluPdllnWY4W1l 'll1'ILll1aW.utwWl d�ltldll IudILL1111'ud�Yulid LlI�I1, W' ��IalllllllWLLU41 'w'WWJWYIa,alitlu.IJlY �lg11111tlLI11uliJtliNtlJauuIV111ue11JYLUYI +i11YW�1YUL11LWWIL Y{WILYJY'ui IIYilIUYUYe'ul uGluuwYluWiliWU' wY11. tl1 ,IWWV41llbWIilM1YIiYL1i1111111 a1d, LIuLWULLWUY ;YIUYtlY,IJUWtlVItllLliidlWlullWl hVl IIIYIWYIl 111YWYdl'. Vl11WIYiYYWIYUUYNdI4ufIW11uY IYI0YWl11LItlYYIWu1Ii IW illlJYla',W Balance Balance January 1, December 31, Description 1996 Additions Deletions 1996 Land $134,231 $20,000 $ - $154,231 Land improvements 309,333 11,625 - 320,958 Buildings and structures 810,530 41,517 - 852,047 Machinery and equipment 248,220 30,568 18,636 260,152 Furniture and fixtures 157,141 27,058 750 183,449 Totals $1,659,455 $130,768 $19,386 $1,770,837 57 MY OF OAK PARK HEIGHTS, MINNESOTA SCHEDULE OF GENERAL LONG -TERM DEBT Statement 20 December 31, 1996 With Comparative Amounts For December 31, 1995 W'YWl uI11J:411W 1Y Y „YWLVYYIILYIlW110 I JWWWVIII V,iW4WJV YY J i1lIY, II6 U W 1141:dYJIW dl W J I'IIIIIIWIWYWuI 11u.LWYWL J61JL 1.1 JLIW' IIIWIWY041Y1L11aaLIWIIYLIJY .J44'YILVW41'll:Yk WI41L11: YJWIdEV: 1' JILILLI' JUYdlllilu114! WI111: N: WYWLWIWJIW+ 11Wtl11YIWFWYIIW' tlIWYLLLWY11YlYWW1YWl1' JW1111WhWIY11, 1611WJ 'u1141W111 /dlluW(Y!LLItIIYW LIdVd LiUIIW, L' IIJJYJYII' JIUJWlW11LLYJiLMIW1WllJdi11WWtlWYIIi 'WWYLi'IWLWLIYIIW:. 1996 1995 Amount Available And To Be Provided For The Retirement of Long -Term Debt Bonds: Amount available in Debt Service Funds $496,308 $440,053 Amount to be provided from future tax levies/ special assessment collections, and connection charges 1,718,692 1,934,947 Compensated absences: Amount available in General Fund 80,274 74,225 Contract for deed: Amount to be provided for retirement 40,000 - Total available and to be provided $2,335,274 $2,449,225 General Long -Term Debt Payable Bonds payable: General Obligation Bonds: G.O. Refunding Bonds of 1992 90,000 105,000 G.O. Crossover Refunding Bonds of 1993 1,065,000 1,140,000 Special Assessment Bonds: G.O. Improvement Bonds of 1995 1,060,000 1,130,000 Total bonds payable 2,215,000 2,375,000 Compensated absences payable 80,274 74,225 Contract for deed 40,000 - Total general long -term debt payable $2,335,274 $2,449,225 58 SUPPLEMENTARY FINANCIAL, INFORMATION 59 CITY OF OAK PARK FIGHTS, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS Exhibit 1 December 31, 1996 Final Net Bonds Principal Interest Payment Interest Authorized Retired Outstanding Due Due Date Due Rate And Issued To Date At 12/31/96 In 1997 In 1997 Bonded Indebtedness General Debt: G.O. Refunding Bonds of 1992 911/92 1211/00 5.48% $150,000 $60,000 $90,000 $20,000 $4,700 G.O. Crossover Refunding Bonds of 1993 4/1/93 12/1/06 4.71% 1,140,000 75,000 1,065,000 80,000 49,130 Special assessments bonds: G.O. Improvement bonds of 1995 7/1/95 12/1/05 4.69% 1,130,000 70,000 1,060,000 110,000 48,660 Total Indebtedness $2,420,000 $205,000 $2,215,000 $210,000 $102,490 60 CITY OF OAK PARK HEIGHTS, MINNESOTA REVENUE BONDS AND GENERAL DEBT BONDS Exhibit 2 SCHEDULE OF DEBT SERVICE PAYMENTS TO MATURITY December 31, 1996 General Debt Bonds Special General Taxing District General Obligation $150,000 Obligation Crossover G.O. Refunding Improvement Refunding Bonds of 1992 Bonds of 1995 Bonds of 1993 Bonds payable $90,000 $1,060,000 $1,065,000 Future interest payable 12,495 254,035 301,285 Totals $102,495 $1,314,035 $1,366,285 Payments to maturity: 1997 $24,700 $158,660 $129,130 1998 23,720 154,095 131,090 1999 27,700 159,420 132,690 2000 26,375 154,140 133,910 2001 - 148,740 134,825 2002 - 143,280 150,325 2003 - 137,700 149,805 2004 - 132,000 158,805 2005 - 126,000 166,805 2006 - - 78,900 Totals $102,495 $1,314,035 $1,366,285 61 CITY OF OAK PARK HEIGHTS, MINNESOTA INSURANCE IN FORCE Exhibit 3 December 31, 1996 Coverage Amount Umbrella Liability $1,000,000 Package: Property Blanket Building and Contents ($500 deductible) 3,004,960 Public Liability including errors and omissions 600,000 Inland Marine ($500 deductible) 109,000 Limited Pollution 600,000 General Liability 600,000 Business Auto Policy: Liability CSL 600,000 Uninsured motorist 600,000 Underinsured motorist 600,000 Physical Damage: Comprehensive ($250 deductible) A.C.V. Collision ($500 deductible) A.C.V. Worker's Compensation 200,000/600,000 /600,000 Public Employees' Bond: Clerk - treasurer 50,000 Deputy Clerk - treasurer 50,000 Bond - Public Employees Blanket Bond 50,000 Open Meet Law Policy - Defenses Costs 20,000 62 CITY OF OAK PARK HEIGHTS, MINNESOTA FUTURE SCHEDULED TAX LEVIES Exhibit 4 December 31, 1996 Special Taxin District Year Of G.O. Refunding G.O. Improvement Collection Bonds of 1992 Bonds of 1995 Total 1997 $23,664 $ - $23,664 1998 25,000 59,000 84,000 1999 25,000 60,000 85,000 2000 25,000 60,000 85,000 2001 - 60,000 60,000 2002 - 60,000 60,000 2003 - 60,000 60,000 2004 - 60,000 60,000 2005 - 60,000 60,000 Totals $98,664 $479,000 $577,664 63 CITY OF OAK PARK HEIGHTS, MINNESOTA TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Exhibit 5 1996/1997 1995/1996 Taxable Valuations: Real estate $6,591,894 $6,411,815 Personal property 136,796 129,330 Fiscal disparity: Contribution (750,991) (755,512) Distribution 313,429 280,681 Captured tax increment value (143,528) (155,088) Total $6,147,600 $5,911,226 Tax Levy: City Wide: General revenue $1,371,254 $1,367,545 Debt service - - Total City Wide 1,371,254 1,367,545 Storm Sewer District: G.O. Refunding Bonds of 1992 23,644 23,840 Total Tax Levy $1,394,898 $1,391,385 Tax Capacity Rate: City Wide: General revenue 22.270% 23.145% Debt service 0.000% 0.000% Total City Wide 22.270% 23.145% Storm Sewer District: Storm Sewer Bonds of 1982 0.628% 0.636% Total Storm Sewer District 22.898% 23.781% Note: The tax levies shown above represent net tax levies after reduction for state aids. 64 CITY OF OAK PARK HEIGHTS, MR- NESOTA SCHEDULE OF CONSTRUCTION COSTS Exhibit 6 December 31, 1996 Legal Expended and Current Prior Contractor Engineer Fiscal Other Total Year Years River Hills 2nd Addition $173,386 $30,641 $1,189 $13,904 $219,120 $13,807 $205,313 Street Reconstruction 933,686 220,585 4,866 65,956 1,225,093 69,701 1,155,392 Valley View Estates 242,506 52,545 1,444 4,670 301,165 34,527 266,638 AAE - 58th Street - Phase II 411,251 72,391 2,080 11,269 496,991 71,614 425,377 AAE - 58th Street - Phase III - - 1,913 25,501 27,414 21,427 5,987 AAE - Autumn Ridge 165,463 49,305 742 1,976 217,486 23,730 193,756 AAE - Autumn Ridge - 2nd Addition 300,100 49,556 486 2,847 352,989 95,301 257,688 AAE - Brackey Addition 165,381 32,704 2,064 1,763 201,912 192,728 9,184 AAE - Haase Addition 52,077 15,214 741 608 68,640 3,196 65,444 Total- All Funds $2,443,850 $522,941 $15,525 $128,494 $3,110,810 $526,031 $2,584,779 65 CITY OF OAK PARK HEIGHTS, MINNESOTA SCHEDULE OF SOURCES AND USES OF FUNDS Exhibit 7 FOR ST. CROIX MALL TAX INCREMENT DISTRICT December 31, 1996 Accounted Original for in Current Amount Bud et Prior Years W Year _ Remaining Sources of funds: Tax increments received (including interest) $1,700,000 $749,609 $143,861 $806,530 Uses of funds: Developer assistance 960,000 446,155 85,551 428,294 58th Street improvements 170,040 150,079 - 19,921 Other improvements: Street reconstruction 520,000 145,800 - 374,200 Other - 1,419 - (1,419) Administrative 50,000 - - 50,000 Total uses of funds 1,700,000 743,453 85,551 870,996 Funds remaining (deficit) $0 $6,156 $58,310 ($64,466) 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, 1996. 66 STATISTICAL SECTION 67 QTY OF OAK PARK HEIGHTS, MINNL+'SOTA GENERAL AND SPECIAL REVENUE FUNDS Table 1 EXPENMURES BY FUNCTION Years 1987 Through 1996 (UNAUDITED) Streets General Public and Capital Year Total Government Safety Highways Sanitation Recreation Outlay 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 1991 1,425,679 318,948 563,770 107,828 262,838 139,726 32,569 1992 1,512,901 335,835 606,517 83,638 267,557 156,321 63,033 1993 1,604,095 364,284 655,150 94,365 312,423 160,257 17,616 1994 1,694,495 370,356 683,928 100,059 338,498 164,685 36,969 1995 1,795,775 398,640 724,112 86,000 344,396 178,567 64,060 1996 2,032,963 441,852 796,557 136,611 434,175 185,372 38,396 68 CITY OF OAK PARK HEIGHTS, MINNESOTA GENERAL AND SPECIAL REVENUE FUNDS Table 2 REVENUE BY SOURCE Years 1987 Through 1996 (UNAUDITED) Licenses Charges Fines Interest Inter - and for and on Year Total Taxes governmental Permits Services Forfeits Investments Miscellaneous 1987 $997,368 $681,636 $185,050 $18,882 $35,493 $31,809 $38,658 $5,840 1988 1,150,650 804,441 194,553 22,682 48,452 27,788 45,043 7,691 1989 1,278,878 868,420 205,914 20,187 67,334 36,776 53,348 26,899 1990 1,448,745 1,142,770 40,037 48,870 102,836 42,165 62,064 10,003 1991 1,462,737 1,057,578 51,460 122,804 123,969 36,174 52,004 18,748 1992 1,552,461 1,121,894 87,194 93,908 146,702 38,557 33,905 30,301 1993 1,750,039 1,262,465 108,990 62,898 208,315 44,189 25,500 37,682 1994 1,821,948 1,254,999 136,359 60,914 239,643 55,111 34,783 40,139 1995 2,003,222 1,354,677 144,480 117,511 241,874 49,020 55,436 40,224 1996 2,097,097 1,390,443 145,741 156,181 230,579 56,545 56,468 61,140 69 CITY OF OAK PARK HEIGHTS, NIINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Table 3 Years 1987 Through 1996 (UNAUDITED) WWWI'J IWIUL1411 YII, Yu1111W111eIWJ11Wl IlJ 14WI YLIII II{ II' AIWIIWIYYYIIWWIIYILLIIUIWWI1VYWe11111WIW11dIYYd4ulY11WW1114lWIIWIIl 411141 'Id11411Y11JYIlYYY11lYWIiuJiJl II WIJWlWIY1dLL111'llul'W 11lII,YYdIW 1Y1WLi1115W 'IIYW,WIi0111''J4WtlIWI1WWl'uYu IIWIIWIY{IW4WWd'lI1W 14111'' IWJV, IVIIIIIYJIIVWIil1VWJ1' iWltlYlll, 4 ,WPI'Ill11tlJ{YU11111VYll,llwlll, ILIWiti JYWVWY UO. 111414! IWWIIIIWIIWWIWWII 'WlWIIL;JIYIII!IY!W41 Percent Total of Collection Delinquent Current Delinquent Total as a Outstanding Percent of Taxes Total Current Tax Levy Tax Tax Percent Delinquent Current Py le Tax Levy Collections Collected Collections Collections of Levy Taxes Levy 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% 1991 * 1,199,554 1,129,373 94.15% 15,103 1,144,476 95.41% 35,036 2.92% 1992 1,199,554 1,182,272 98.56% 8,815 1,191,087 99.29% 39,017 3.25% 1993 1,302,310 1,294,478 99.40% 26,441 1,320,919 101.43% 17,563 1.35% 1994 1,344,630 1,330,300 98.93% 2,344 1,332,644 99.11% 21,146 1.57% 1995 1,430,985 1,421,284 99.32% 12,034 1,433,318 100.16% 18,813 1.31% 1996 1,459,621 1,452,564 99.52% 7,674 1,460,238 100.04% 18,196 1.25% * During 1991, the State cut the City's HACA by $43,148 representing 3.6% of the City's total certified tax levy. Without this State aid. reduction, 1991 total tax collections would have equaled 99 % of the certified tax levy. 70 CITY OF OAK PARK BEIGBTS, MINNESOTA SPECIAL ASSESSMENT COLLECTIONS Table 4 Years 1987 Through 1996 (UNAUDITED) Current Total Outstanding Collections Collections Delinquent As a Percent As a Percent Assessments Current Current Of Current Delinquent Of Current (including Year Assessments Assessments Assessments Assessments Assessments Certified Pa able Due Collected Due Collected Due Bills) 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 * 1991 74,851 46,219 61.75% * 42,965 119.15% * 58,761 * 1992 120,717 102,217 84.67% * 24,861 105.27% * 50,927 * 1993 125,110 123,137 98.42% * 48,247 136.99% * 2,106 * 1994 46,145 45,729 99.10% 35 99.17% 2,486 1995 47,191 43,888 93.00% 1,021 95.16% 2,282 1996 139,628 136,958 98.09% 1,071 98.85% 4,163 * Note: Special assessments for 1989 through 1993 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 elected to pay these assessments as the underlying parcels were sold and/or developed rather than over the scheduled years of the certified collections for this assessment roll. The above delinquent assessments of $2,106 at December 31, 1993 include $998 from this single developer. Actual versus scheduled collections for this assessment roll have been as follows through December 31, 1993: Excess (Deficiency) Actual Originally Scheduled Over Year Annually Cumulative Annually Cumulative Scheduled 1987 $128,240 $128,240 $ - $ - $128,240 1988 167,569 295,809 - - 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 97,563 949,418 229,600 735,500 213,918 1992 43,859 993,277 214,100 949,600 43,677 1993 28,427 1,021,704 198,500 1,148,100 (126,396) Based upon the past history of this developer (as shown above) the City provided alternative revenue to ensure the complete and timely financing of this bond issue. Such alternative revenue sources (plus 1990 - 1993 delinquent collections) resulted in a remaining surplus of $216,921 after the bonds were fully retired. 71 CITY OF OAK PARK HEIGHTS, MINNESOTA PRINCIPAL TAXPAYERS (Ten Largest Taxpayers) Table 5 Taxes Payable in 1996 (UNAUDITED) Percent of Percent of Total Net Total Tax Market Market Tax Capacity Property Taxpayer Value Value Capacity Value Classification Northern States Power $78,394,400 35.1% $3,606,141 53.6% Public Utilities Oak Park Partners 9,850,700 4.4% 451,533 6.7% Commercial Wal -Mart Stores Inc 2,588,000 1.2% 117,448 1.7% Commercial K -Mart Corporation 1,814,200 0.8% 81,853 1.2% Commercial Oak Ridge Place 2,451,500 1.1% 83,351 1.2% Res. over 3 units Port of Sunnyside 1,415,700 0.6% 63,523 0.9% Commercial Oak Park Associates 1,821,600 0.8% 61,934 0.9% Res. over 3 units Wbdh Realty Company 715,900 0.3% 31,331 0.5% Res. over 3 units Routson Investments 643,100 0.3% 27,983 0.4% Commercial Doyle John R Sr & Jo 610,50 0.3% 26,483 0.4% Commercial Totals $100,305,600 45.0% $4,551,580 67.6% SOURCE: Washington County Auditor - Treasurer Taxation Division. NOTES: (1) This list is based only on parcels paying more than $15,000 net tax (2) If a taxpayer has property consisting of more than one classification, only one is shown. 72