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HomeMy WebLinkAboutAnnual Financial Report CITY OF OAK PARK HEIGHTS, MINNESOTA ANNUAL FINANCIAL REPORT DECEMBER 31, 1997 CITY OF OAK PARK HEIGHTS, MINNESOTA TABLE OF CONTENTS urmumua, uuweuuuvram ;wwduaswuwm,,iwuu.w wnmwruuuouw ad;euuuda;mdm •ouw,;u mauwauroa,muwuiawre:a;mmu,uu wwiww, ary; wdursw; wuwaW, ro, w, dwwm, an, woW!ouwa:wdaaum,w +mmiuvu,u,,a vuwtu.w ua,am as dam ;wuuw,woea, ,w,wimswmr,.uo. W,a,m;, wumi:„uu wa uuuvwmru „w wW ui,eum „n.,wwui Organization Independent Auditor's Report General Purpose Financial Statements Combined Balance Sheet - All Fund Types and Account Groups Statement 1 Combined Statement of Revenue, Expenditures and Changes in Fund Balance - All Governmental Fund Types Statement 2 Combined Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual - General 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 Combininsa. Individual Fund and Account Group Financial Statements. General Fund: Balance Sheet Statement 6 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Statement 7 Special Revenue Funds: Combining Balance Sheet Statement 8 Combining 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 6l. WLIJ. 6, 4Wd: IY. WI' WIl LIIy ,1.411YIIV6Y "„IIIU'IJ14'JILI I:IY'II: YI UJUJU JI:,I.lJlY1Y'wlu,lll.WV 1111J, ILLIVLL,ItliYIJ u4,d,:L11 JdIlY,J1YIWJ,YddIVV I.IJJ'tl',l 'O:V:JJIIA YIY WItlJtl1V Yd IYJIIIIw:.IJ:IYJtlJW III LIJII IJ4LYJIJIYYYY'41:LIJI114 JW41 uW lltl IILIIWIYv1:lY('iW'IWILLd IILJYJI:llYLL:YIIIJ: NWYIUllJ11YLIY IILL'JY:WIAIYJd:11Wd:lW:. 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 -Tenn Debt Account Group: Schedule of General Long -Term Debt Statement 20 Supplementary 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 dxr mw.uawu;mrdu,wnauwnsww uuuw,auu wwnwuuu muwwwwsiuuudy�;uaru wwuuwmwa�orwuuu m��a�umwreawwwwwnwwuuuwuwmmwdu uwa,a,iwarunsiwswuuau wwuuusiui.wwa,.wau,a�wiawwwwu wuwa�wuuiw,iuwaue, uwawwuouwuum uiea.u,,ua�a iuwwww�wuu.�a�a,iwwwr auu;ww'uwwmwu wuwaxwi uauueww�,u Statistical Section General and Special Revenue Funds - Expenditures by Function - Years 1988 through 1997 Table 1 General and Special Revenue Funds - Revenue by Source - Years 1988 through 1997 Table 2 Property Tax Levies and Collections - Years 1988 through 1997 Table 3 Special Assessment Collections - Years 1988 through 1997 Table 4 Principal Taxpayers Table 5 CITY OF OAK PARK HEIGHTS, MINNESOTA ORGANIZATION December 31, 1997 :uu¢utir,,i au:madauar as xa uxwd:m:u�uwi�uwdmmmuu : wudaan,�w,uWUiam:vl,uew ew�rwwa, unur vowwaununwi,ewuda,urd,wuio:aaw,muua mr:u dau: duoiupia� ,iwuans�uwmunuu,rwauuunueuuwawr u,nuiuu:wurwau,omwua�io r�uaruWUa,:moruru,mueuu wnr�u�wm�ebu:uu:un uri aewao�.wo:asm adovtuu„a, ,�yvuVr�au��A Term 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 Interim Administrator - Treasurer: Judy Holst Appointed Deputy Clerk/Finance Director: Judy Holst Appointed 1 This page intentionally left blank. 2 777j k7 nm TI p 77 §T'77 t — 712E , 7 OUT ;k7gg !"T";7 7� 4 W T i .......... a - L44 4r, +» ;t, M. = 71 Z 1l-----1 i tz' *04, gl This page intentionally left blank. 4 GENERAL PURPOSE FINANCIAL STATEMENTS 5 CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1997 With Comparative Totals For December 31, 1996 Governmental Fund Types Special Debt Assets General Revenue Service Cash and investments $1,337,184 $21,745 $518,953 Interfund receivable - - - Assets held with deferred compensation plan administrator - - - Accrued interest receivable _ _ Accounts receivable 29,011 - Due from other governmental units 15,256 - Due from developers - - Prepaid items - - Inventory 3,056 - - Taxes receivable: Delinquent 10,805 - 142 Due from County (41,155) - (721) Special assessments receivable - 342,814 Fixed assets (net of accumulated depreciation) _ _ _ Amount available in general fund - - - Amount available in debt service fund _ _ _ Amount to be provided for retirement of general long -term debt - - - Total assets $1,354,157 $21,745 $861,188 Liabilities, Equity and Other Credits Liabilities: Cash overdraft $ $ - $ - Interlund payable - - Escrow deposits payable - - Accounts payable 64,652 - - Salaries payable 17,116 - - Contracts payable - - Due to other governmental units 14,217 199 - Judgment payable - - Deferred compensation payable - - Due to developers _ - Compensated absences payable - - Contract for deed payable - - Bonds payable - - - Deferred revenue 11,825 7,220 342,104 Total liabilities 107,810 7,419 342,104 Equity and other credits: Invested in general fixed assets - - - Contributions - net - - - Retained earnings: Reserved - - - Unreserved - - - . Fund balance: Reserved - - 519,084 Unreserved: Designated 1,188,814 14,326 - Undesignated 57,533 - - Total equity and other credits 1,246,347 14,326 519,084 Total liabilities, equity and other credits $1,354,157 $21,745 $861,188 6 The accompanying notes are an integral part of these financial statements. Statement 1 Proprietary Fiduciary Account Groups Totals Capital Fund Type Fund Type General General Long- (Memorandum Only) Project Enterprise Agency Fixed Assets Term Debt 1997 1996 $3,624,580 $538,004 $29,000 $ - $ $6,069,466 $5,601,132 75,000 - - - - 75,000 - - _ _ _ 215,653 - 131,530 - - 131,530 66,932 127,630 - - 156,641 168,500 - 22,281 - - 37,537 14,138 101,845 - 48,044 - 149,889 93,213 - 19,574 - - 19,574 23,238 - _ _ - 3,056 4,294 10,947 18,196 _ _ _ - (41,876) 5,156 154,752 - - - 497,566 791,700 - 4,319,669 - 1,837,486 - 6,157,155 5,748,063 - 95,814 95,814 80,274 519,084 519,084 496,308 - - 1,505,916 1,505,916 1,758,692 $3,956,177 $5,027,158 $208,574 $1,837,486 $2,120,814 $15,387,299 $15,085,489 $59,891 $ - $163,130 $ - $ - $223,021 $107,638 75,000 - - - - 75,000 - - - 29,000 - 29,000 33,000 22,723 5,972 15,273 - 108,620 91,581 - - - - 17,116 164,109 130,431 _ _ - 130,431 - - 2,051 - - 16,467 41,517 _ _ _ _ 100,000 _ 215,653 1,171 - 1,171 313 _ - 95,814 95,814 80,274 20,000 20,000 40,000 2,005,000 2,005,000 2,215,000 154,572 - - - - 515,721 808,060 442,617 8,023 208,574 0 2,120,814 3,237,361 3,897,145 - 1,837,486 - 1,837,486 1,770,837 - 4,082,158 - - - 4,082,158 3,736,928 - 661,765 - - - 661,765 661,765 - 275,212 - - - 275,212 213,368 - 519,084 496,308 3,578,274 - - - - 4,781,414 4,338,885 (64,714) - - - - (7,181) (29,747) 3,513,560 5,019,135 0 1,837,486 0 12,149,938 11,188,344 $3,956,177 $5,027,158 $208,574 $1,837,486 $2,120,814 $15,387,299 $15,085,489 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, 1997 With Comparative Totals For The Year Ended December 31, 1996 Totals Special Debt Capital (Memorandum Only) General Revenue Service Project 1997 1996 Revenue: General property taxes $1,387,227 $ - $23,648 $ - $1,410,875 $1,414,321 Tax increment taxes - - - 130,343 130,343 142,586 Special assessments - - 94,741 250,900 345,641 235,213 Intergovernmental 164,352 2,780 1,336 - 168,468 146,908 Licenses and permits 204,986 - - - 204,986 156,181 Charges for services 216,536 - - - 216,536 230,579 Fines and forfeits 60,682 - - - 60,682 56,545 Interest on investments 55,885 616 29,541 205,222 291,264 248,027 Connection charges - - - 288,283 288,283 206,621 Other charges - - - - - 13,258 Escrow investment earnings - - - 231 231 207 Refunds and reimbursements 51,108 - - 177,960 229,068 441,255 Donations and contributions 50 - - 38,120 38,170 13,120 Other 4,226 8,500 - - 12,726 12,592 Total revenue 2,145,052 11,896 149,266 1,091,059 3,397,273 3,317,413 Expenditures: Current: General government 507,902 - - - 507,902 441,852 Public safety 845,287 1,728 - - 847,015 796,557 Streets and highways 99,412 - - - 99,412 136,611 Sanitation 313,302 - - - 313,302 434,175 Recreation 211,244 - - - 211,244 185,372 Capital outlay 52,018 3,288 - 37,613 92,919 134,062 Debt service: Principal - - 210,000 - 210,000 160,000 Interest - - 102,490 - 102,490 108,737 Professional services - - - 52,145 52,145 42,545 Developer assistance _ _ _ 78,206 78,206 85,551 Construction costs - - - 495,970 495,970 737,050 Total expenditures 2,029,165 5,016 312,490 663,934 3,010,605 3,262,512 Revenue over (under) expenditures 115,887 6,880 (163,224) 427,125 386,668 54,901 Other financing sources (uses): Operating transfers from other funds - 1,112 186,000 646,774 833,886 303,324 Operating transfers to other funds (182,133) - - (550,550) (732,683) (205,000) Total other financing sources (uses) (182,133) 1,112 186,000 96,224 101,203 98,324 Net increase (decrease) in fund balance (66,246) 7,992 22,776 523,349 487,871 153,225 Fund balance - January 1 1,312,593 6,334 496,308 2,990,211 4,805,446 4,652,221 Fund balance - December 31 $1,246,347 $14,326 $519,084 $3,513,560 $5,293,317 $4,805,446 8 The accompanying notes are an integral part of these financial statements. CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND Statement 3 CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND For The Year Ended December 31, 1997 With Comparative Actual Amounts For The Year Ended December 31, 1996 1997 Over (Under) 1996 Budget Actual Budget Actual Revenue: General property taxes $1,371,254 $1,387,227 $15,973 $1,390,443 Intergovernmental 154,401 164,352 9,951 145,741 Licenses and permits 165,980 204,986 39,006 156,181 Charges for services 212,300 216,536 4,236 230,579 Fines and forfeits 52,100 60,682 8,582 56,545 Interest on investments 45,000 55,885 10,885 56,468 Refunds and reimbursements 21,735 51,108 29,373 45,268 Donations and contributions 50 50 - 1,600 Other - 4,226 4,226 8,742 Total revenue 2,022,820 2,145,052 122,232 2,091,567 Expenditures: Current: General government 439,665 507,902 68,237 441,852 Public safety 889,030 845,287 (43,743) 791,916 Streets and highways 97,725 99,412 1,687 136,611 Sanitation 327,600 313,302 (14,298) 434,175 Recreation 203,650 211,244 7,594 185,372 Capital outlay 44,000 52,018 8,018 34,645 Total expenditures 2,001,670 2,029,165 27,495 2,024,571 Revenue over expenditures 21,150 115,887 94,737 66,996 Other financing sources (uses): Operating transfers to other funds (96,000) (182,133) (86,133) (35,000) Net increase (decrease) in fund balance ($74,850) (66,246) $8,604 31,996 Fund balance - January 1 1,312,593 1,280,597 Fund balance - December 31 $1,246,347 $1,312,593 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, 1997 With Comparative Amounts For The Year Ended December 31, 1996 Enterprise Fund 1997 1996 Operating revenue: Customer billings $489,759 $494,369 Penalties 6,692 8,656 Plumbing permits 1,410 1,860 Meter sales 6,683 5,580 Charges for services 4,154 2,010 Total operating revenue 508,698 512,475 Operating expenses: Contractual services 80,652 61,731 Refunds and reimbursements 888 606 MCES charges 226,198 266,494 Materials and supplies 16,659 7,719 Administrative and personnel charges 102,100 98,850 Depreciation 112,284 108,564 Total operating expenses 538,781 543,964 Net income (loss) from operations (30,083) (31,489) Other income: Interest on investments 37,777 31,201 Refund of prior SAC charges 54,150 20,700 Total other income 91,927 51,901 Net income before operating transfers 61,844 20,412 Operating transfers to Capital Project Fund (101,203) (98,324) Net income (loss) (39,359) (77,912) Other increases: Credit arising from transfer of depreciation to contributions from property owners 101,203 98,325 Net increase in retained earnings 61,844 20,413 Retained earnings - January 1 875,133 854,720 Retained earnings - December 31 $936,977 $875,133 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, 1997 With Comparative Amounts For The Year Ended December 31, 1996 Enterprise Fund 1997 1996 Cash flows from operating activities: Operating income (loss) ($30,083) ($31,489) Refund of prior SAC charges 54,150 20,700 Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation 112,284 108,564 Change in assets and liabilities: Decrease (increase) in receivables (7,715) (22,081) Decrease (increase) in prepaid expenses 3,664 (2,611) Increase (decrease) in payables (34,638) (443) Net cash flows from operating activities 97,662 72,640 Cash flows from noncapital financing activities: Operating transfers to other funds (101,203) (98,324) Cash flows from capital and related financing activities: Acquisition of fixed assets (8,294) (17,358) Cash flows from investing activities: Interest received on investments 37,777 31,201 Net increase (decrease) in cash and cash equivalents 25,942 (11,841) Cash and cash equivalents - January 1 512,062 523,903 Cash and cash equivalents - December 31 $538,004 $512,062 Significant noncash investing, capital and financing activities: During 1996 and 1997, fixed assets were contributed to the Enterprise Fund as follows: 1997 1996 Water Operating Fund $266,417 $ - Sewer Operating Fund 180,016 - Total $446,433 $0 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, 1997 WYI:I IWGIUw.rlldll, ill 6Ili l611'1ll 0IIeA,III,WIlel4! Wild 6J4 11 A Ii WI i I 161111, 11 Ild, I lid, AM I Ili I Y 1! 11WI Ill kill lJi.6IIr6W'1H Ill !JYILha i 0 Ill 1I I'll ILI! mol I: Ill Ill II I id10JAI.WIIJAId Au ldi[IIIII'MYlwllrpl1 Ilk Ill IIY01dWlllliw l6lyl41101i I W OII Ilk' V4Y1lYlYIYYIL IIII J,11hlug!kil Ili A"iI!LJiI,di'll IIYdlI'tlNIIJYOYWIIWIw'ldldVIJ 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 HRA of the City of Oak Park Heights is a separate legal entity which is authorized to expend monies generated by the City's tax increment district. The City council also serve as HRA board members. The transactions of the HRA are confined to the St. Croix Mall TIF Capital Project Fund. B. 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, 1997 PROPRIETARY FUNDS Enternrise 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 Agencv 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 bust 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 Lone -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, 1997 WIJILLINIIWtlJIJ4JIY'. d4i! Wu , ;W, k 11 J111 I LII ii III: "I,1111u 11, . I III , I J I ICI IJ I 11 IIJ IIw1JII111tl'IIS JJ I, I W tlJ1111111111111111 !11 A 1141. 1111111 "J111i III uIlI I I4JIwIIII,IJILO LM I\I III U:I I ih I 11I0 IId.I,I Iii 111 Wu JI I l ill 11111') ILI, III , III, "JIJIIU k1d i ,,I ;I II ,I AAA III IJdJ'I ' IJi1IiW.JI 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. Govermmental 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 $515,721, which consists of the following: Unearned grants $8,239 Property taxes receivable 10,947 Special assessments receivable 496,535 Total $515,721 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 Funds and accordingly the combined statement of revenue, expenditures and changes in fund balance - budget and actual (Statement 3) excludes amounts relating to these unbudgeted funds. 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, 1997 !4'tllWllWWItlWWWu,81WbJWd ti� " WItlIrv6JY1JWYJW •" •" JW4LuuluWdJeWYdL' WJY6YWWYIYWUIW' dWWy> L' YWiVl41e1uYWIWLJ lWYU6WW11LLIIJNIJWWtiYYWJIJIWJY W'Jtl1Y ` si?'..' i' LLLW4Wv41u4' LLWdYilw' W.' WYBWYdIWIWyLW11iLWYJWJ '4LYWIWtlWLLu'Y 'WWiY" WI1 .4'Ssi !'L! tW"JlW18 ..I 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. 16 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 williWil"W"hii IWl Wa Ih I11 AfrYilu"NI 161: 1,11, 11 IWAdWhdlda A6119LJ O;Ji III hd , ji All, I A 1, ji I, I id 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 the fund's equity in the cash and investment pool. 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. H. 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. 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 1997 and 1996 totaled $72,735 and $64,727, respectively. Receipt of property taxes from this "fiscal disparities pool" does not increase or decrease total tax revenue. 17 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 WYLL'IYIUdtW111Y'J[IIWJ41l1UU .bLlIJ I „LIIUlYI JJ YIJII WW YlIIYaY'WI, YJYIUWI!' el YWl wll l 'IYWW4LL'JJ1111UUWlYWI.IdWllllW 116JLYtlIIJIJIU WWuJdIWWdIdIJYIY JLi O!'WIW'W WWI U',d JIIJIdIVIW'111UW1UiIbJtlJY W4111llY1 JUIWUY',IflUIJW,Ylu 1'JIWitl YII' Willll (YIWLIYUOxILJW4'3YW'vL1YLJw, YIdlJblldJ' JWE” WJYWJJYWYY' W{ d1WILLLLW1lWJW,Ii1WY14YLWY'WJNi I. 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. J. 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. K. FIXED 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. 18 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 dIWY:YYW'ltlpNY41YNdI11LLl ItlIeYYIJI, LIIIILLIII; WWIIYIIIIY llAIIIIII IN; III III III II III 4WIYIIYId U161111JVIII 4l lI A1111 WI1NI IIINMW 1,1119;IN AIN14JI10A, I jlY:tl IA, �'a II U I' � I' 11 Wdll JII:WY ILW dIId WIJII61LLd114V1111 JIYILI'lllI YIWIJ'mllJIIILJIIid Y' IIIIIIII, p11' d1WJIl; WUI. 1I, I, J41JL11I ;:1L'1114JIIIJIUII!III'.d1111tlJ IN I1111i�41 411, IdIdLLll 'JIIId.11111I1AWid1WIlW J,11114V 111 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. L. 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. M. 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. N. 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. 19 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 uvwm,ui:wwmmueu a i.,wmuuuuuuu aw;; mW ,;euu :wumwuuwwwweu a.rw;;unsu m;d a .,u iu!u ema. u!.;, c, nrWrwwuwuwsiuuaiou ,uwu,wuuawuamumwumimawmu,!u u.;aww umwueuWa uu. Wambuuueuwuu :wumtmWwmaa;aomoumo� euuwwu'ulu;ro,Wi +wu mummwmw uiu "mniumm�tu O. 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. P. 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. Q. COMPARATIVE DATA Comparative total data for the prior year have been presented in 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 in prior year data have been reclassified in order to be consistent with the current year's presentation. R. USE OF ESTIMATES The preparation of financial statements in accordance with generally accepted accounting principles (GAAP) requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. 20 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 IWYWtlIJY✓liY U' JIaLi0.W, w0dItl 1611bW!ILb OW, @III IkJJdI!aLI1'�L,lld'O, YYIWdu11dWLLIWUHWWI iIadIltl11,JJ Ilu J1lWl!!ItllWJ 181111dL61YIlI;WYwv111 iWY ILdWLiWd.IlY lrYtl1111.LVdLIII IpBll udlwddLLmWw4lov "Wi,Ww dde '6WW,vY 4. INhllb!Idl01W JdWLrW dldtluidu l�JU itl151L1d1YL l;Le,ldl iWll;Ali 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 $4,888,969 and the bank balance was $5,200,836. The entire bank balance was covered by Federal Depository Insurance or by collateral held by the City's agent in the City's name. INVESTMENTS Minnesota Statutes authorize the City to invest in the following: a) Direct obligations or obligations guaranteed by the United States or its agencies, 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, 1997 Balances at December 31, 1997 were: Carrying Market Amount Value Investments: Shared investment pools $957,376 $958,568 Deposits 4,888,969 Change funds 100 Total $5,846,445 At December 31, 1997, the City held no investments subject to custodial credit risk classification. Note 3 FIXED ASSETS • summary of changes in general fixed assets is as follows: Balance Balance 1/1/97 Additions Deletions 12/31/97 Land $154,231 $20,000 $ - $174,231 Land improvements 320,958 5,643 - 326,601 Buildings and structures 852,047 12,679 - 864,726 Machinery and equipment 260,152 48,976 28,413 280,715 Furniture and fixtures 183,449 9,564 1,800 191,213 Totals $1,770,837 $96,862 $30,213 $1,837,486 • summary of Enterprise Fund fixed assets at December 31, 1997 is as follows: Enterprise Land $60,000 Buildings and structures 1,254,445 Machinery and equipment 134,613 Distribution and collection systems 4,334,874 Total 5,783,932 Less: accumulated depreciation (1,464,263) Net fixed assets $4,319,669 22 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 A&I; BI lid Ali WUIWIYIEM.ULLLHJIO'U W,IRAIIILI, U1111YluVIIW I J911i YIlk [ OJAI I tlIJUiI11VIM1luJU III I lffi� Ibl'i' lklJjgil!l:!4' uii,::ih,WIIWNI a JtlpI,WWUIwBWI H1111,1110i! IIIW::1: IIlwu'JI "ill"W"I'lJ lwV dtl Al UAd11UI1WJ MiuYWIVYI,ILLWI I alWUl H 1) 11111 Note 4 LONG -TERM DEBT The following is a schedule of changes in City indebtedness for the year ended December 31, 1997: Balance Balance 1/1/97 Additions Deletions 12/31/97 General Long -Term Debt Account Group: Bonded debt: General obligation $1,155,000 $ $100,000 $1,055,000 Special assessment bonds 1,060,000 - 110,000 950,000 Compensated absences 80,274 15,540 - 95,814 Contract for deed 40,000 - 20,000 20,000 Total general long -term debt $2,335,274 $15,540 $230,000 $2,120,814 All long -term bonded indebtedness outstanding at December 31, 1997 is backed by the full faith and credit of the City. The annual requirement to amortize all debt outstanding at December 31, 1997 including interest payments of $466,419 is as follows: Year General Contract Ending Obligation for December 31, Bonds Deed 1998 $308,905 $21,094 1999 319,810 - 2000 314,425 - 2001 283,565 - 2002 293,605 - 2003 -2006 950,015 - Total $2,470,325 $21,094 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, 1997 Long -term debt at December 31, 1997 is composed of the following: Final Authorized Issue Maturity Interest And Outstanding Date Date Rate Issued 12/31/97 General Long -Tenn Debt: General obligation bonds: G.O. Refunding Bonds of 1992 9/01/92 12/01/00 5.48 $150,000 $70,000 G.O. Crossover Refunding Bonds of 1993 4/01/93 12/01/06 4.71 1,140,000 985,000 Special assessment bonds: G.O. Improvement Bonds of 1995 7/1/95 12/1/05 4.69 1,130,000 950,000 Compensated absences 95,814 Contract for deed 2/27/96 2/16/98 5.47 60,000 20,000 Total general long -term debt $2,120,814 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, 1997, $25,000 of bonds outstanding are considered defeased as follows: Issue Amount $500,000 General Obligation Water and Sanitary Sewer Improvement Bonds of 1968 $25,000 24 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 uuiou,,u,;mni u.mosidwnu,m u,;ws uieruweiruiau,uuaeeimn w,a r,; m Lw.uu,ewaiaum,�;meuu eamuwi uyawuu; uu, muuwu, uasmwuuiwuuwmmuuude raueeduuouuaiummuewiumsuuwuum; mueduud. mwwewuuwaiuruawatsuerwauuuuueu ,;a uri:uruiu,usu,; e;wur, e,iimem;Le:uuoe. 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 and 1997 is computed as follows: December 31, 1997 1996 Market value (for pay 1997) $223,205,500 $223,097,480 Debt limit percentage 2.00% 2.00% Debt limit 4,464,110 4,461,950 Amount of debt applicable to debt limit: Total bonded debt 2,005,000 2,215,000 Less: Non applicable debt: Revenue bonds (985,000) (1,065,000) Special assessment bonds (950,000) (1,060,000) Cash and investments in corresponding Debt Service Funds (29,770) (26,873) Total amount of debt applicable to debt limit 40,230 63,127 Legal debt margin $4,423,880 $4,398,823 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 with Minnesota 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. 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. 25 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 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 1997, 1996 and 1995 were $62,116, $60,609 and $55,796, respectively, equal to the contractually required contributions for each year as set by state statute. 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). The MCES changed their billing methods effective January 1, 1998. The MCES will bill on a quarterly basis based on normalized flows with a two quarter delay in flow determination. The 1999 bills will reflect the actual cost adjustment for 1997 estimated 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, 1997 and 1996 were as follows: December 31, 1997 1996 Current value credits $106 $147 Debt service credits 10,251 21,297 Total $10,357 $21,444 26 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 'IYI U; iI "!,i IIIL;W All iI lilk III L Ili I� i, ILL d.IUIJIiIJi I�Ili.l dliiLlh iLL� L J. Id;i�,Id,liW�lu0111! o�IIIII,VJ; II..wL� II14nill�idJiWplul�LLlp I;IdIIJV'el.l,ll IVI ,IWIiIIIJ'e:lul;111111Le1111�W i W I', VaIV . hilld6liJlillilld Ill ",.h L dWIII WIN llll' III lYLLLL41LJlltl ILA l l'pll d!14I1 4 1111A ilI'll IIIIIIWIII! IOJLLIdhJIIJ {IiluV11;tl'L!IuYi! III ilh JJhlell,il ILL l, III I'hllhl iI IlsVll{ IJIw!YIIIYIWIY 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 $2,191,568 $266,417 $57,062 $2,400,923 Sewer 1,545,360 180,016 44,141 1,681,235 Total $3,736,928 $446,433 $101,203 $4,082,158 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. On August 20, 1996 the provisions of Internal Revenue Code Section 457 were amended to enable plans to hold all assets and income of the plan in trust for the exclusive benefit of participants and their beneficiaries. These assets were previously required to be held as property of the City. The Governmental Accounting Standards Board (GASB) issued Statement 32 in October 1997. This Statement rescinds GASB Statement 2 which required deferred compensation plans to be presented as Agency Funds within the City's financial statements. GASB 32 is effective for the year ended December 31, 1999 or on the date (if earlier) that the plan changes its trust provisions. The plan provisions for the ICMA and PEPSCO defined compensation plans were amended to hold the plan assets in trust for the plan participants and their beneficiaries. The deferred compensation Agency Fund is therefore closed at December 31, 1997. Note 10 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, 1997. Taxes Payable in 1997 Current net tax capacity $385,283 Original net tax capacity (as adjusted) (243,513) Retained captured net tax capacity $141,770 27 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 . "WIdYYYbWWiWiYJiNtlY14WWYYWYYWVW WLitlWiiLIWWYItlWi111WdNWeYWiWWWtlydYIh1 WIY, IWiYIiYIIdWYtlYiIYWWWhIWYYUW 'YtiiWIYgWWIWYYL •, ,• • •.• • " " . " 1Y4tlYYWtlWWWIWWY�WJhIYW1WItlYWYWbYIWIIWiiWIiWWtl41WYYYtlIY 'WWW ` YIIIULWYWtlWIW11WWWYdiYYlYlW4uiYJtlWIdtlAYYYLYYW1dYtlId4WWtl14YWULWYLW1YYeffiWL Note 11 SPECIAL TAXING DISTRICT The City Council of Oak Park Heights established Storm Sewer Improvement Tax District No. 1 pursuant to Minnesota Statutes, Section 444.17 and Ordinance No. 1600 adopted by the City on October 12, 1982. Financing of the construction costs for establishment of this district was 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 three 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 12 DEFICIT FUND BALANCESIRETAINED EARNINGS The following funds had a fund deficit at December 31, 1997: Amount Capital Project: Interim construction ($3,458) River Hills 2nd addition (65) West Frontage Road connection (947) 58th Street Improvement Phase II1 (50,866) Autumn Ridge 3rd addition (9,378) Note 13 CONTINGENCIES The City attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance, of an immaterial amount; or in the judgment of the City attorney, remotely recoverable by plaintiffs. Note 14 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, 1997 totaled $553,410. 28 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 :wwumY,urrYUml Wmmlullwuiounruw: nYUaaudlwaY, uimuuYWwarJmanrm 'uul.oYmuulWduoaJll JawnrYmuuWnYl :YUWI1ruYmmuoaerrna IUWWY'WIWVWII I! Illlullb6l; i' J,IIIWW.I!IIIiIIIItlJJ!iI4YJYYi III,IIJII,Ii IIIlurY111111JW11Y Ill, LIIIIY1WdiJIIWYJdllp141YVdi144W1 JIIYl{YJeu LWlllp.Illll lilt: IYI, IIVIiIWIIVaII ,LIWIWiIYLYYM1Iilll1l',:Illli 1dIV !YaIIY,WWWJIJ10IIYYIVYILL'111Y l Note 15 DESIGNATIONS AND RESERVATIONS OF FUND EOUITY, At December 31, 1997 and 1996 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, 1997 and 1996 are shown on the various balance sheets as segregations of the fund equity. A summary of such designations is as follows: December 31, 1997 1996 General Fund: Designated for cash flow $760,000 $724,000 Designated for contingent employee benefit 120,814 197,308 Designated for general contingency 308,000 245,823 Designated for capital improvements - 72,962 Designated for ensuing year's budget deficit - 61,000 Designated for comprehensive plan - 11,500 Special Revenue Fund: Designated for special revenue program 14,326 6,334 Debt Service Funds: Reserved for debt service 519,084 496,308 Capital Project Funds: Designated for capital improvements 3,541,989 3,019,958 Designated for committed contracts 36,285 - Enterprise Fund: Reserved for debt service reserve 661,765 661,765 Totals $5,962,263 $5,496,958 29 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1997 tlWYWdu1'el 11111.1WI,L JYY IIILlilllll {W 4 WJIII 6111.6 1i'L lol LLILeIWibY'IdtlYI1J 11'dLI;J1sYWJWIW,WI116Y btl J4111J IIIiYJI; IJW' YWIIJ' JYY' mY, d; l, l', WILJILYIIYIWIW6 'l1WUJWYWW6.lIYLV WYYYL¢W lluu. WI;WIIWWIIW',uWWtldbYWWLWIWYWWJY J11WwtleWWJLWJYVilWLL' L: IWYJAlIJ1 .1WY'h11d{WdiYWll'W;'1114J &WLLIuW IuWLI'wi• {WU, YLLWWWl1hkYIWI1L Note 16 COMMITMENTS Construction commitments at December 31, 1997 were composed of the following: Expended Remaining Contract as of Contract Description Authorized 12/31/97 Commitment Autumn Ridge 3rd Addition $201,634 $187,567 $14,067 Brackey West Addition 340,908 288,321 52,587 Note 17 MAJOR TAXPAYER The City has one major taxpayer, Northern States Power, the total tax capacity value for this taxpayer represented approximately 64% of the City's total tax capacity value for taxes payable in 1997. Note 18 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. 30 COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS 31 This page intentionally left blank. 32 CITY OF OAK PARK HEIGHTS, MINNESOTA GENERAL FUND Statement 6 BALANCE SHEET December 31, 1997 With Comparative Amounts for December 31, 1996 December 31, Assets 1997 1996 Cash and investments $1,337,184 $1,453,511 Accounts receivable 27,306 25,234 Accounts receivable - certified 1,705 1,970 Due from other governmental units 15,256 13,238 Inventory 3,056 4,294 Taxes receivable: Delinquent 10,805 17,859 Due from County (41,155) 5,068 Total assets $1,354,157 $1,521,174 Liabilities and Fund Balance Liabilities: Accounts payable $64,652 $81,522 Salaries payable 17,116 6,695 Due to other governmental units 14,217 2,505 Judgment payable - 100,000 Deferred revenue 11,825 17,859 Total liabilities 107,810 208,581 Fund balance: Unreserved: Designated for cash flow 760,000 724,000 Designated for contingent employee benefit 120,814 197,308 Designated for general contingency 308,000 245,823 Designated for capital improvements - 72,962 Designated for ensuing year's budget deficit - 61,000 Designated for comprehensive plan - 11,500 Undesignated 57,533 - Total fund balance 1,246,347 1,312,593 Total liabilities and fund balance $1,354,157 $1,521,174 33 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, 1997 With Comparative Actual Amounts for the Year Ended December 31, 1996 1997 Over (Under) 1996 Budget Actual Budget Actual Revenue: General property taxes: Current and delinquent $1,371,254 $1,367,012 ($4,242) $1,36$,127 Payment in lieu of taxes - 8,116 8,116 7,185 Excess TIF - 12,059 12,059 14,711 Other taxes - 40 40 420 Total general property taxes 1,371,254 1,387,227 15,973 1,390,443 Intergovernmental: Federal: Safe &Sober 10,150 8,687 (1,463) 12,938 State: HACA 73,065 73,065 - 67,063 Local Performance aid 4,186 4,186 - - Police aid 50,000 44,900 (5,100) 52,211 Snow plowing - 15,800 15,800 - County: Recycling grant 16,000 16,505 505 13,300 Gravel tax allocation 1,000 1,109 109 229 Other - miscellaneous - 100 100 - Total intergovernmental 154,401 164,352 9,951 145,741 Licenses and permits 165,980 204,986 39,006 156,181 Charges for services: General government 2,200 2,456 256 2,674 Refuse collection 93,000 87,830 (5,170) 103,444 Inspections - City of Bayport 15,000 24,150 9,150 25,611 Administrative - Enterprise Fund 102,100 102,100 - 98,850 Total charges for services 212,300 216,536 4,236 230,579 Fines and forfeits 52,100 60,682 8,582 56,545 Interest on investments 45,000 55,885 10,885 56,468 Refunds and reimbursements 21,735 51,108 29,373 45,268 Donations and contributions 50 50 - 1,600 Sale of property - 4,226 4,226 8,742 Total revenue 2,022,820 2,145,052 122,232 2,091,567 Expenditures: General government: Mayor and council: Current: Personal services 42,095 70,576 28,481 41,662 Contractual services 7,900 8,405 505 4,779 Total current 49,995 78,981 28,986 46,441 Capital outlay - 11,352 11,352 2,544 Total mayor and council 49,995 90,333 40,338 48,985 34 CITY OF OAK PARK HEIGHTS, MINNESOTA 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, 1997 With Comparative Actual Amounts for the Year Ended December 31, 1996 ddW lluLlYU.hd luLwA(W I,LAwelY ba,Y l,lu u. '.,,p, s,a ,, .. v. m. YU, d,pa u,,wae e. awuoludee, uae" ,,, ,, . uaw JiJd', d alu W4Ws ,Ll6sutluY, udLLelY1J'1o11WWYWhJI1W VJU Ytl11'YYCWVWWWw4Y8.0 sWYw14W4JdJa illwhlWtledJY , a "LLU'u 16W1 LWa,0Y0¢wWIWN,N4WWU 0' I,m,l wawa wYW'Y4UN'.01ull 1997 Over (Under) 1996 Budget Actual Budget Actual Expenditures: (continued) General government: (continued) Elections: Current: Personal services $ - $ - $ - $2,611 Contractual services 720 720 - 126 Total elections 720 720 0 2,737 City administrator: Current: Personal services 176,600 178,594 1,994 161,248 Materials and supplies 3,150 3,620 470 3,192 Contractual services 10,050 14,165 4,115 16,093 Total current 189,800 196,379 6,579 180,533 Capital outlay 1,000 288 (712) 1,856 Total City administrator 190,800 196,667 5,867 182,389 Planning and zoning: Current: Personal services 30,000 35,230 5,230 45,745 Municipal building: Current: Materials and supplies 5,300 5,299 (1) 6,318 Contractual services 17,150 21,988 4,838 19,794 Total current 22,450 27,287 4,837 26,112 Capital outlay 2,000 2,050 50 2,263 Total municipal building 24,450 29,337 4,887 28,375 Assessor: Current: Personal services 13,200 15,042 1,842 13,412 Engineering: Current: Contractual services 10,000 15,245 5,245 5,086 General management: Current: Personal services 14,000 37,841 23,841 13,879 Materials and supplies 4,250 6,406 2,156 8,661 Contractual services 105,250 94,771 (10,479) 99,246 Total general management 123,500 139,018 15,518 121,786 Total general government 442,665 521,592 78,927 448,515 35 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, 1997 With Comparative Actual Amounts for the Year Ended December 31, 1996 1997 Over (Under) 1996 Budget Actual Budget Actual Expenditures: (continued) Public safety: Police department: Current: Personal services $683,625 $634,099 ($49,526) $613,468 Materials and supplies 23,500 30,826 7,326 31,144 Contractual services 24,610 22,995 (1,615) 25,565 Total current 731,735 687,920 (43,815) 670,177 Capital outlay 25,400 25,784 384 21,693 Total police department 757,135 713,704 (43,431) 691,870 Building inspections: Current: Personal services 95,420 95,904 484 60,721 Contractual services 2,000 4,090 2,090 3,056 Materials and supplies 1,550 1,648 98 1,810 Total current 98,970 101,642 2,672 65,587 Capital outlay 500 22 (478) 6,289 Total building inspections 99,470 101,664 2,194 71,876 Fire protection: Current: Contractual services 57,225 54,183 (3,042) 55,428 Animal control: Current: Materials and supplies 100 53 (47) 105 Contractual services 1,000 1,489 489 619 Total animal control 1,100 1,542 442 724 Total public safety 914,930 871,093 (43,837) 819,898 Streets and highways: Streets and alleys: Current: Materials and supplies 1,300 2,228 928 689 Contractual services 15,325 8,653 (6,672) 10,221 Total current 16,625 10,881 (5,744) 10,910 Capital outlay 9,100 7,598 (1,502) - Total streets and alleys 25,725 18,479 (7,246) 10,910 Snow and ice removal: Current: Contractual services 35,000 45,131 10,131 81,144 Street lighting: Current: Contractual services 43,800 41,280 (2,520) 42,307 36 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, 1997 With Comparative Actual Amounts for the Year Ended December 31, 1996 AMA: ,u4lJlrs'YII.WdI'A Allll'V QLUl{'IJ1Y1IUW W!1110I {I11161L16, YJVV1',IWwl uu, wJl IIJY. ILI' lw4lWvl' atl. ll' aVL' Lt1, WJb' WUId! d' LIIJ.', WI'. dJd1dIWJ .W4,:'WJ!WII {u{4WWYIaf lluJU.LLY, 1.uullullLIlu a 'Ww,I;ui1JWYLLJIJi!WIIJVi1WIYl'1 6111{ Jlllyll! 4WIWIbYIWYd' luliiW {y11MYWIIW't1YJLYtl11Yl'L4YVYLW JYWY46Y' JWI' llY' IYWIWYYIYJYYYWYIWIWWWYWWOWYIY! L 'd'1'JYWW'JWYWIWIYWWWVYWIW.'LL'W IIWIII 1997 Over (Under) 1996 Budget Actual Budget Actual Expenditures: (continued) Streets and highways: (continued) Arborist: Current: Personal services $2,100 $2,100 $ - $2,225 Contractual services 150 - (150) - Materials and supplies 50 20 (30) 25 Total arborist 2,300 2,120 (180) 2,250 Total streets and highways 106,825 107,010 185 136,611 Sanitation: Refuse collection and disposal: Current: Court judgment - - - 100,000 Contractual services 317,600 298,842 (18,758) 326,036 Total refuse collection and disposal 317,600 298,842 (18,758) 426,036 Tree removal and planting: Current: Contractual services 10,000 14,460 4,460 8,139 Total sanitation 327,600 313,302 (14,298) 434,175 Recreation: Parks, playgrounds and rinks: Current: Personal services 184,375 180,925 (3,450) 171,282 Materials and supplies 5,275 5,869 594 5,783 Contractual services 14,000 24,450 10,450 8,307 Total current 203,650 211,244 7,594 185,372 Capital outlay 6,000 4,924 (1,076) - Total recreation 209,650 216,168 6,518 185,372 Total expenditures 2,001,670 2,029,165 27,495 2,024,571 Revenue over expenditures 21,150 115,887 94,737 66,996 Other financing sources (uses): Operating transfers to Special Revenue Fund - (1,112) (1,112) - Operating transfers to Debt Service Fund (61,000) (61,000) - Operating transfers to Capital Project Fund (35,000) (120,021) (85,021) (35,000) Total other financing sources (uses) (96,000) (182,133) (86,133) (35,000) Net increase (decrease) in fund balance ($74,850) (66,246) $8,604 31,996 Fund balance - January 1 1,312,593 1,280,597 Fund balance - December 31 $1,246,347 $1,312,593 37 CITY OF OAK PARK HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS Statement COMBINING BALANCE SHEET December 3l,1997 With Comparative Amounts For December 3}, 1996 Forfeiture Law and Enforcement Totals Seizure Grant 1997 1996 /\uaeta Cash and investments $13 $8,176 $21,745 $6,334 Total assets $13,569 $8,176 $21,745 $6,334 Liabilities and Fund Balance LiuhUdicx: Due to other governmental onkx $199 $ - $199 $ - Deferred revenue 7 7 ' Total liabilities 199 7,220 7,419 O Fund balance: Ducexoncd: Designated for special revenue programs 13.370 956 14,326 6,334 Total fund balance 13 956 14 6.334 Total liabilities and fund balance $13,560 $8,176 $21 $6,334 38 CITY OF OAK PARK HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS Statement 9 COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1997 With Comparative Amounts For The Year Ended December 31, 1996 Forfeiture Law and Enforcement Totals Seizure Grant 1997 1996 Revenue: Intergovernmental - Federal block grant $ - $2,780 $2,780 $ - Interest on investments 463 153 616 400 Other refunds and reimbursements - - - 1,680 Confiscated property 8,500 - 8,500 3,850 Total revenue 8,963 2,933 11,896 5,930 Expenditures: Public safety: Current: Materials and supplies 1,030 - 1,030 3,360 Contractual services 698 - 698 1,281 Capital outlay 199 3,089 3,288 3,751 Total expenditures 1,927 3,089 5,016 8,392 Revenue over (under) expenditures 7,036 (156) 6,880 (2,462) Other financing sources: Transfer from General Fund - 1,112 1,112 Net increase (decrease) in fund balance 7,036 956 7,992 (2,462) Fund balance - January 1 6,334 - 6,334 8,796 Fund balance - December 31 $13,370 $956 $14,326 $6,334 39 CITY OF OAK PARK HEIGHTS, MINNESOTA DEBT SERVICE FUNDS Statement 10 COMBINING BALANCE SHEET December 3l With Comparative Totals For December 3l, 1996 ..... ... ~~..~.,.-~~~~~~~^~~~^.~..~..~,~~.~_^.....~^...~~..~..~.-^�~~..~~~...~~~,.'~.^.�..~....^~^..~...^^...~~...^.~~.~..~..~^^.~~~ G.O. Revenu Bonds of|99|/ Crossover G.O. G.O. Refunding }��odin� Improvement Bonds of|9D2 Bundy Bonds Totals (Storm Sewer) of1993 nf1995 1997 1996 }\xsuto Cash and investments $29,770 S259.208 $229.975 $518,953 $495,055 Taxes receivable: Delinquent 142 ' ' 142 337 Due from County ( ( XX Special uxaoosmnntu: Delinquent 2 1 3,335 1.506 Deferred ' 4,214 334 338,628 439,760 Due from County - ' 851 851 1,165 Total assets $29 S265 $566,305 $861 $937,911 Liabilities and Fund Balance L|uhUkioc Deferred revenue $142 $6,483 $335 $342,104 $441 Total Uuhilbioa 142 6,483 335,479 342.104 441,603 Fund balance: Reserved for debt service 29,049 259.209 230,826 519,084 496,308 Total liabilities and fund balance $29,191 S265,692 $566.305 $861,188 $937,911 40 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, 1997 With Comparative Totals For The Year Ended December 31, 1996 d1J. 4Y41LJItlWltllt uWYlluWLLiLLIWiYYJ45d .116111WLI4111W0 il e YW.hl Ili d'�, J,, ,IYIIItYI 11 !. '1 ..YitlYJYl.,1 J'L aIWYWdIYl lil ll u R i, YJYaIYW' Yl' WIIILLY�411111. WI,JILIJII,IW'IWWWIYIYll 1'WIWI A10 IIIYI�IW,IWJIi LY 4 flI IIII'�1141i, II YJWJWI dIWe I uIYWIWWtl1411 YYWIL Ydw d'lIIILLIIWWtl WWWYll, 111YI11W0NlIYlW WIYYtO'YIY Y �, JIY,JYYLwtYWWId e�WWY1WWWYY'uuWYYWYYIiWfIwWY I WYUYW 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 1997 1996 Revenue: Storm sewer ad valorem taxes: Current and delinquent $23,648 $ - $ - $23,648 $23,789 Special assessments: Current and delinquent - (9,572) 72,697 63,125 108,017 Prepayments - 1,773 29,624 31,397 47,346 Penalties and interest - 3 216 219 151 Intergovermnental: State: HACA 1,264 - - 1,264 1,167 Local performance aid 72 - - 72 - Interest on investments 1,804 14,510 13,227 29,541 24,522 Total revenue 26,788 6,714 115,764 149,266 204,992 Expenditures: Debt service: Principal 20,000 80,000 110,000 210,000 160,000 Interest 4,700 49,130 48,660 102,490 108,737 Total expenditures 24,700 129,130 158,660 312,490 268,737 Revenue over (under) expenditures 2,088 (122,416) (42,896) (163,224) (63,745) Other financing sources: Transfer from General Fund - - 61,000 61,000 - Transfer from Capital Project Fund - 125,000 - 125,000 120,000 Total other financing sources 0 125,000 61,000 186,000 120,000 Net increase in fund balance 2,088 2,584 18,104 22,776 56,255 Fund balance - January 1 26,961 256,625 212,722 496,308 440,053 Fund balance - December 31 $29,049 $259,209 $230,826 $519,084 $496,308 41 CITY OF OAK PARK HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1997 With Comparative Totals For December 31, 1996 Yu..Yw ll.aw.u. "4...:.LIW.1a..a uu4uLAYJJi'W'�' "'•' "•• "" '•,, , "• "••' " " " „`' ' " "•'•' ,rai.i,.e a. .,i., „ r i,aa. ., e. a a r a....a.. a. a a "w,ae.a .0 . it ra ra a aar a e ilY YlW4tlw t4ell tl.VU1m4 r1 rd'u',U4LL4''u Budgeted Projects and Capital Equipment Park Interim Revolving Fund Revolving Development Construction Assets Cash and investments $892,939 $339,867 $326,210 $ - Interfund receivable 75,000 - - - Due from developers - - - 37,441 Special assessments receivable: Delinquent 1,632 - - - Deferred 138,140 - - - Special deferred 14,800 - - - Due from County 180 - - - Total assets $1,122,691 $339,867 $326,210 $37,441 Liabilities and Fund Balance Liabilities: Cash overdraft $ - $ - $ - $38,939 Interfund payable - - - - Accounts payable 195 15,730 - 374 Contracts payable - 23,650 - 1,586 Deferred revenue 154,572 - - Totalliabilities 154,767 39,380 0 40,899 Fund balance: Unreserved: Designated 967,924 300,487 326,210 - Undesignated - - - (3,458) Total fund balance 967,924 300,487 326,210 (3,458) Total liabilities and fund balance $1,122,691 $339,867 $326,210 $37,441 42 Statement 12 Page 1 of 2 St. Croix Valley View West Brackey - Mall River Hills Street East Oaks Estates Frontage Road Renewal and Oak Park (TIF) 2nd Addition Reconstruction Swager Krongard Connection Replacement Pond $121,447 $ - $115,529 $ - $15,384 $ - $1,101,175 $163,123 776 - 889 - - - - $121,447 $776 $115,529 $889 $15,384 $0 $1,101,175 $163,123 $ - $841 $ - $701 $ - $947 $ - $ - 883 93 - - - 2,481 15,307 - - 9,947 0 841 883 794 15,307 947 0 12,428 121,447 - 114,646 95 77 - 1,101,175 150,695 - (65) - - - (947) - - 121,447 (65) 114,646 95 77 (947) 1,101,175 150,695 $121,447 $776 $115,529 $889 $15,384 $0 $1,101,175 $163,123 43 CITY OF OAK PARK HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1997 With Comparative Totals For December 31, 1996 6111111YW11uidYYY 141 YU6 v4„ IYW, I, JIYIYl J. I JII LL4IYY UIW'1 ":YYI ILLibllYY4W,ulIWJWNYIY IY. I,; YIYI WI,Y IIY Ii IY WJYfWW, IIIYWUIYJl1111YWIIJ1YWIOIWJWI 'Y1Y1111lJYtl'III:L'JYlYl6 YYIWWW.Iaa aJY IYYV11Wd IeYYYVWVII'YUIY YYYWbll,ol'IWYliwle YYeY'oYWllYll'l1eW',IWWI YJJIWY IuIY I.i I'tlll ltWtl YWYYe6::WW1Y'WY4LLa w'WYJI tbIYI:ItYWY: Brackey Addition Brackey - 58th Street Utility and 58th Street Outlots Improvement Autumn Street Improvement A & B Phase II Ridge Improvement Phase III Assets Cash and investments $ - $82,640 $494 $6,305 $24,134 Interfund receivable - - - - - Due from developers 6,077 - - 27,319 - Special assessments receivable: Delinquent - - - - - Deferred - - - - - Special deferred - - - - - Due from County - - - - - Total assets $6,077 $82,640 $494 $33,624 $24,134 Liabilities and Fund Balance Liabilities: Cash overdraft $2,514 $ - $ - $ - $ - Interfund payable - - - - 75,000 Accounts payable 680 243 - 1,643 - Contracts payable 2,883 29,217 - 25,492 - Deferred revenue - - - - - Total liabilities 6,077 29,460 0 27,135 75,000 Fund balance: Unreserved: Designated - 53,180 494 6,489 - Undesignated - - - - (50,866) Total fund balance 0 53,180 494 6,489 (50,866) Total liabilities and fund balance $6,077 $82,640 $494 $33,624 $24,134 44 Statement 12 Page 2 of 2 AAE Autumn Autumn Sanitary Storm Haase Ridge Ridge Sewer Water Sewer Totals Addition 2nd Addition 3rd Addition Connection Connection Connection 1997 1996 $ - $ - $ - $157,997 $126,142 $151,194 $3,624,580 $3,101,170 - 75,000 - 14,466 1,505 13,372 - - - 101,845 85,353 - - _ _ - - 1,632 1,407 - - 138,140 202,391 - - 14,800 144,800 - _ - - - - 180 671 $14,466 $1,505 $13,372 $157,997 $126,142 $151,194 $3,956,177 $3,535,792 $14,444 $1,505 $ - $ - $ - $ - $59,891 $33,706 - _ - _ - 75,000 - - - 401 - - - 22,723 5,863 22,349 - - - 130,431 157,414 - - - - - - 154,572 348,598 14,444 1,505 22,750 0 0 0 442,617 545,581 22 - - 157,997 126,142 151,194 3,578,274 3,019,958 - - (9,378) - - - (64,714) (29,747) 22 0 (9,378) 157,997 126,142 151,194 3,513,560 2,990,211 $14,466 $1,505 $13,372 $157,997 $126,142 $151,194 $3,956,177 $3,535,792 45 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, 1997 With Comparative Totals For The Year Ended December 31, 1996 Budgeted Projects and Capital Equipment Park Interim Revolving Fund Revolving Development Construction Revenue: General property taxes: Current and delinquent Tax increment taxes Special assessments: Current and delinquent 62,347 - - Penalty and interest 75 - - - Prepayments 157,495 - - - Interest on investments 63,630 17,707 17,887 Connection charges 40,680 - - Other charges - Escrow investment earnings 231 - - - Refunds and reimbursements 7,389 2,882 - - Donations and contributions - 250 37,870 - Total revenue 331,847 20,839 55,757 0 Expenditures: Professional services 41,166 3,719 5,188 2,072 Developer assistance - - - Capital outlay - 37,613 - Construction costs 1,928 35,721 - - Total expenditures 43,094 77,053 5,188 2,072 Revenue over (under) expenditures 288,753 (56,214) 50,569 (2,072) Other financing sources (uses): Operating transfers from General Fund - 120,021 - - Operating transfers from Capital Project Fund 50,000 - - Operating transfers from Enterprise Fund - - - - Operating transfers to Debt Service Fund Operating transfers to Capital Project Fund (375,550) - - Total financing sources (uses) (325,550) 120,021 0 0 Net increase (decrease) in fund balance (36,797) 63,807 50,569 (2,072) Fund balance - January 1 1,004,721 236,680 275,641 (1,386) Fund balance (deficit) - December 31 $967,924 $300,487 $326,210 ($3,458) 46 Statement 13 Page 1 of 2 . ahval� ' Cti4'WtlilW46kdutu, +'w , �wuu u4Y'UY.W9uruJYU �'e LL��?. i.!= _ J4 '• °• ° , •:. xaw,wnr�u .i+ ".•. W, ewuWYYyuwYSSNWu' rmu' w: o4 s�v�. � dawua. wwwwuuw�umu, e. tWUueuwwWUJa, uYdun WU. uaYUwudmyWwu: wwuu. wwwu: aWsbuW: uwww• . . m... .:u °e,:¢eaomwrewuwuawae.wuuWa St. Croix Valley View West Brackey - Mall River Hills Street East Oaks Estates Frontage Road Renewal and Oak Park (TIF) 2nd Addition Reconstruction Swager Krongard Connection Replacement Pond 130,343 - - - - - - - 4,844 - 10,220 1 77 - 57,318 840 1,284 7,162 - - 8,583 135,187 0 10,220 1,285 7,239 0 57,318 9,423 78,206 - - - - - - - - 65 24,285 1,231 7,162 - - 234,278 78,206 65 24,285 1,231 7,162 0 0 234,278 56,981 (65) (14,065) 54 77 0 57,318 (224,855) - 375,550 - - - - - 101,203 - 0 0 0 0 0 0 101,203 375,550 56,981 (65) (14,065) 54 77 0 158,521 150,695 64,466 - 128,711 41 - (947) 942,654 - $121,447 ($65) $114,646 $95 $77 ($947) $1,101,175 $150,695 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, 1997 With Comparative Totals For The Year Ended December 31, 1996 Brackey Addition Brackey - 58th Street Utility and 58th Street Outlots Improvement Autumn Street Improvement A & B Phase 11 Ridge Improvement Phase III Revenue: General property taxes: Current and delinquent $ - $ - $ - $ _ $ _ Tax increment taxes - - - Special assessments: Current and delinquent - - - Penalty and interest - - - _ Prepayments - - - Interest on investments - 4,755 23 324 969 Connection charges - - - - - Other charges - - - Escrow investment earnings - - - - Refunds and reimbursements 71,030 - 6,584 50,632 Donations and contributions - - - _ - Total revenue 71,030 4,755 6,607 50,956 969 Expenditures: Professional services - - - _ _ Developer assistance Capital outlay _ _ _ _ _ Construction costs 71,030 8,879 6,584 50,911 24,421 Total expenditures 71,030 8,879 6,584 50,911 24,421 Revenue over (under) expenditures 0 (4,124) 23 45 (23,452) Other financing sources (uses): Operating transfers from General Fund - - - _ _ Operating transfers from Capital Project Fund - - - - - Operating transfers from Enterprise Fund - - - - - Operating transfers to Debt Service Fund - - - - - Operating transfers to Capital Project Fund - - - - - Total financing sources (uses) 0 0 0 0 0 Net increase (decrease) in fund balance 0 (4,124) 23 45 (23,452) Fund balance - January 1 - 57,304 471 6,444 (27,414) Fund balance (deficit) - December 31 $0 $53,180 $494 $6,489 ($50,866) 48 Statement 13 Page 2 of 2 AAE Autumn Autumn Sanitary Storm Haase Ridge Ridge Sewer Water Sewer Totals Addition 2nd Addition 3rd Addition Connection Connection Connection 1997 1996 $ - $ - $ - $ - $ - $ - $ - $89 - - - - - - 130,343 142,586 6,268 10,902 13,813 93,330 30,012 75 575 - - - 157,495 49,112 8,548 10,077 8,002 205,222 166,637 51,067 87,142 109,394 288,283 206,621 - _ - 13,258 - 231 207 11,089 3,150 8,175 - - - 177,960 394,307 - - 38,120 11,520 11,089 3,150 8,175 65,883 108,121 131,209 1,091,059 1,014,924 - - - - - - 52,145 42,545 78,206 85,551 - - - - - - 37,613 95,666 11,089 3,150 17,553 - - (2,317) 495,970 737,050 11,089 3,150 17,553 0 0 (2,317) 663,934 960,812 0 0 (9,378) 65,883 108,121 133,526 427,125 54,112 - - - - - - 120,021 35,000 - 425,550 50,000 - 101,203 98,324 (20,000) (105,000) - (125,000) (120,000) (50,000) (425,550) (50,000) 0 0 0 (20,000) (105,000) (50,000) 96,224 13,324 0 0 (9,378) 45,883 3,121 83,526 523,349 67,436 22 - - 112,114 123,021 67,668 2,990,211 2,922,775 $22 $0 ($9,378) $157,997 $126,142 $151,194 $3,513,560 $2,990,211 49 CITY OF OAK PARK HEIGHTS, MINNESOTA ENTERPRISE FUND Statement 14 BALANCE SHEET December 3l,l997 With Comparative Amounts for December 3l �".��_�^°�..~.~...^``~~.~.�~�^=.-..~.^~.....'.^..~-..^......~~~.~.~~.~~~-~~.^~..^.^~..^~.~..~`.~.~"=^,."==~�~,"^~�°^�"."~.~°==�=.~"~^^==._~�°,^�^�.~~~~= Assets 1997 1996 Current assets: Cash and cash equivalents $538,004 $512,062 Accounts receivable: Customers 115.206 123,625 CortificdtoCounty 12,202 6,905 Other 222 10 Due from other governmental units 22,281 900 PreyuidMCE3 19,574 23,238 Total current assets 707,489 677,496 Fixed assets: LuuJ 60 60,000 Buildings and structures 1,254,445 1,254,445 Machinery and equi 134 126.457 Distribution and collection system 4,334,874 3,888,442 Total 5,783 5,329,344 Less: Allowance for depreciation (1, (1`352,118) Net fixed assets 4,319 3,977,226 Total assets $5,027,158 $4,654,722 Liabilities and Fund Equity LiuhUdioc Accounts payable $5,972 $3,649 Due W ot governmental units 2 39,012 Total liabilities 8,023 42,661 Fund equity: Contributions from property owners ' net 4,082 3,736,928 Retained earnings: Deuen/od 661,765 661.765 Duremuo/eJ 275,212 213.368 Total fund equity 5,019,135 4 Total liabilities and fund equity $5,027 $4,654,722 50 CITY OF OAK PARK HEIGHTS, MINNESOTA ENTERPRISE FUND Statement 15 STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 1997 With Comparative Totals For The Year Ended December 31, 1996 '41J,uVI ul lsWi.Ww v4. Wr1tl. W,hlt „tuuiwtlw,u.1.Vdu,,,,.b uomWlW'1W4e,V.I WNdv ul awAUUWWW rOWe!'d J',wJUIIVW4W UWVW', YWI I,W YU W, uultlV'lJ.J II WIUweWIh111Wl.YVV .VIIY II tl6WWU U1' WOW', IS, u11WYYllle' uIdYYWJVIYYWIWIYWWUY1141uiWWWIWWW WdSWW'LtW lll'Ye.buY'WYYW tWIwsIMUi LUllb, wYY41u 4YbWeW,4lIVa11u, Water Sewer Totals Operating Operating 1997 1996 Revenue: Customer billings $174,221 $315,538 $489,759 $494,369 Penalties 2,401 4,291 6,692 8,656 Plumbing permits 705 705 1,410 1,860 Meter charges 6,683 - 6,683 5,580 Charges for services 2,017 2,137 4,154 2,010 Total operating revenue 186,027 322,671 508,698 512,475 Expenses: Contractual services 65,043 15,609 80,652 61,731 Refunds and reimbursements 888 - 888 606 MCES charges - 226,198 226,198 266,494 Materials and supplies 10,808 5,851 16,659 7,719 Administrative and personnel charge 51,050 51,050 102,100 98,850 Depreciation: On purchased assets 8,770 2,311 11,081 10,240 On contributed assets 57,062 44,141 101,203 98,324 Total operating expenses 193,621 345,160 538,781 543,964 Operating income (loss) ($7,594) ($22,489) (30,083) (31,489) Other income: Interest on investments 37,777 31,201 Refund of prior SAC charges 54,150 20,700 Total other income 91,927 51,901 Net income before operating transfers 61,844 20,412 Operating transfer to Capital Project Funds (101,203) (98,324) Net income (loss) (39,359) (77,912) Other increases: Credit arising from transfer of depreciation to contributions from property owners 101,203 98,325 Net increase in retained earnings 61,844 20,413 Retained earnings - January 1 875,133 854,720 Retained earnings - December 31 $936,977 $875,133 51 CITY OF OAK PARK HEIGHTS, MINNESOTA ENTERPRISE FUND Statement 16 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1997 With Comparative Amounts For The Year Ended December 31, 1996 wuuw.mmw ,, u,u„a,,, .,, siaw aun ,,.nuv,a m,r„.u,u m,a ira.o,a iwau uwnw,,uun,, uee,w mu ur u.ue,umu uu,wea.,u,eawuwuoua ruo amuam.aw„wuu,w,ur uw, ,uwowui uw,nou, a. uwu,ww , +,,,,,, ",,, ,,, , "„ . " 1. ",,, , x.; , y.,xur,wu..:u 1997 1996 Cash flows from operating activities: Operating income (loss) ($30,083) ($31,489) Refund of prior SAC charges 54,150 20,700 Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation 112,284 108,564 Change in assets and liabilities: Decrease (increase) in receivables (7,715) (22,081) Decrease (increase) in prepaid expenses 3,664 (2,611) Increase (decrease) in payables (34,638) (443) Net cash flows from operating activities 97,662 72,640 Cash flows from noncapital financing activities: Operating transfers to other funds (101,203) (98,324) Cash flows from capital and related financing activities: Acquisition of fixed assets (8,294) (17,358) Cash flows from investing activities: Interest received on investments 37,777 31,201 Net increase (decrease) in cash and cash equivalents 25,942 (11,841) Cash and cash equivalents - January 1 512,062 523,903 Cash and cash equivalents - December 31 $538,004 $512,062 Significant noncash investing, capital and financing activities: During 1996 and 1997, fixed assets were contributed to the Enterprise Fund as follows: 1997 1996 Water Operating Fund $266,417 $ - Sewer Operating Fund 180,016 Total $446,433 $0 52 CITY OF OAK PARK HEIGHTS, MINNESOTA AGENCY FUNDS Statement 17 COMBINING BALANCE SHEET December 31, 1997 With Comparative Totals for December 31, 1996 Developer Developer Deposit Escrow Investment Totals Fund Fund Fund 1997 1996 Assets Cash and investments $ - $29,000 $ - $29,000 $33,000 Assets held with deferred compensation plan administrator - - - - 215,653 Accrued interest receivable - - 131,530 131,530 66,932 Due from developers 48,044 - - 48,044 7,860 Total assets $48,044 $29,000 $131,530 $208,574 $323,445 Liabilities Cash overdraft $31,600 $ - $131,530 $163,130 $73,932 Escrow deposits payable - 29,000 - 29,000 33,000 Accounts payable 15,273 - - 15,273 547 Deferred compensation payable - - - - 215,653 Due to developers 1,171 - - 1,171 313 Total liabilities $48,044 $29,000 $131,530 $208,574 $323,445 53 CITY OF OAK PARK HEIGHTS, MINNESOTA AGENCY FUNDS Statement 18 COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For The Year Ended December 31, 1997 : ,Yw'ildWWdllW,e,Wdw1LL1 ; „ wCYJWl1:4J1111bW:Y'YJ,0 W8f W8h IW.LWIJ.WnWe,eo : w11 .u.1 iJY 11, le, , Vu,LdtlulWwbll u w 'IY i "II dJw I I, LJ 681 tlW'u W Wp WILYIV BwllWudu,llY 111tlY VV YYIb I,i lllld nbIII WIVJW 011i,lul Y'V1,11 ".. l.I ,VW, LdI:Il141V8 {IYIJ1l'tl JIa,W4 '1' 111Y 141:111 YI'J 1111, , J:LLIilY111wLIJI84WW YW L YuJ.WL'VW J'i Balance Balance January 1, December 31, 1997 Additions Deletions 1997 Developer Deposit Fund: Assets: Due from developers $7,860 $48,044 $7,860 $48,044 Liabilities: Cash overdraft $7,000 $24,600 $ - $31,600 Accounts payable 547 15,273 547 15,273 Due to developers 313 1,171 313 1,171 Total liabilities $7,860 $41,044 $860 $48,044 Developer Escrow Fund: Assets: Cash and investments $33,000 $ - $4,000 $29,000 Liabilities: Escrow deposits payable $33,000 $29,000 $33,000 $29,000 Investment Fund: Assets: Accrued interest receivable $66,932 $131,530 $66,932 $131,530 Liabilities: Cash overdraft $66,932 $64,598 $ - $131,530 Deferred Compensation Fund: Assets: Assets held with deferred compensation plan administrator $215,653 $ - $215,653 $ - Liabilities: Deferred compensation payable $215,653 $ - $215,653 $ - Total Aaenev: Assets: Cash and investments $33,000 $ - $4,000 $29,000 Assets held with deferred compensation plan administrator 215,653 - 215,653 - Accrued interest receivable 66,932 131,530 66,932 131,530 Due from developers 7,860 48,044 7,860 48,044 Total assets $323,445 $179,574 $294,445 $208,574 Liabilities: Cash overdraft $73,932 $89,198 $ - $163,130 Escrow deposits payable 33,000 29,000 33,000 29,000 Accounts payable 547 15,273 547 15,273 Deferred compensation payable 215,653 - 215,653 - Due to developers 313 1,171 313 1,171 Total liabilities $323,445 $134,642 $249,513 $208,574 54 CITY OF OAK PARK HEIGHTS, MINNESOTA SCHEDULE OF GENERAL FIXED ASSETS Statement 19 For The Year Ended December 31, 1997 diWUldllWdYiW dWV'. W. YYd11Wi,u,l;J 4YYfddJYiu'II ILW lL(IL.iL YUW,uWId4LW1111d1YJ IlItlY1d1Y,W W'W YdWlL.WW N1WW. Y IIfLLY IVL,JVIIWIII Odb JIkLyYl4VUYiId'.eYW4YWY'V01y iW.YlI rJILL.Viud e.11L,aWUw .L.yIWWULLWLW...u,W rleu,W Wwy wwd.„�'. .. .....0 ,.w. Balance Balance January 1, December 31, Description 1997 Additions Deletions 1997 Land $154,231 $20,000 $ - $174,231 Land improvements 320,958 5,643 - 326,601 Buildings and structures 852,047 12,679 - 864,726 Machinery and equipment 260,152 48,976 28,413 280,715 Furniture and fixtures 183,449 9,564 1,800 191,213 Totals $1,770,837 $96,862 $30,213 $1,837,486 55 CITY OF OAK PARK HEIGHTS, MINNESOTA SCHEDULE OF GENERAL LONG -TERM DEBT Statement 20 December 31, 1997 With Comparative Amounts For December 31, 1996 1997 1996 Amount Available And To Be Provided For The Retirement of Loner-Term Debt Bonds: Amount available in Debt Service Funds $519,084 $496,308 Amount to be provided from future tax levies/ special assessment collections, and connection charges 1,485,916 1,718,692 Compensated absences: Amount available in General Fund 95,814 80,274 Contract for deed: Amount to be provided for retirement 20,000 40,000 Total available and to be provided $2,120,814 $2,335,274 General Long -Term Debt Payable Bonds payable: General Obligation Bonds: G.O. Refunding Bonds of 1992 $70,000 $90,000 G.O. Crossover Refunding Bonds of 1993 985,000 1,065,000 Special Assessment Bonds: G.O. Improvement Bonds of 1995 950,000 1,060,000 Total bonds payable 2,005,000 2,215,000 Compensated absences payable 95,814 80,274 Contract for deed payable 20,000 40,000 Total general long -term debt payable $2,120,814 $2,335,274 56 SUPPLEMENTARY FINANCIAL INFORMATI ®N 57 CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS Exhibit I December 31, 1997 Final Net Bonds Principal Interest Payment Interest Authorized Retired Outstanding Due Due Date Due Rate And Issued To Date At 12/31/97 In 1998 In 1998 Bonded Indebtedness General Debt: G.O. Refunding Bonds of 1992 9/1/92 12/1/00 5.48% $150,000 $80,000 $70,000 $20,000 $3,720 G.O. Crossover Refunding Bonds of 1993 4/1/93 12/1/06 4.71% 1,140,000 155,000 985,000 85,000 46,090 Special assessments bonds: G.O. Improvement bonds of 1995 7/1/95 12/1/05 4.69% 1,130,000 180,000 950,000 110,000 44,095 Total Indebtedness $2,420,000 $415,000 $2,005,000 $215,000 $93,905 58 CITY OF OAK PARK HEIGHTS, MINNESOTA REVENUE BONDS AND GENERAL DEBT BONDS Exhibit 2 SCHEDULE OF DEBT SERVICE PAYMENTS TO MATURITY December 31, 1997 General Debt Bonds Special General Taxing District Obligation General $150,000 Crossover Obligation G.O. Refunding Refunding Improvement Bonds of 1992 Bonds of 1993 Bonds of 1995 Bonds payable $70,000 $985,000 $950,000 Future interest payable 7,795 252,155 205,375 Totals $77,795 $1,237,155 $1,155,375 Payments to maturity: 1998 $23,720 $131,090 $154,095 1999 27,700 132,690 159,420 2000 26,375 133,910 154,140 200 1 - 134,825 148,740 2002 - 150,325 143,280 2003 - 149,805 137,700 2004 - 158,805 132,000 2005 - 166,805 126,000 2006 - 78,900 - Totals $77,795 $1,237,155 $1, 155,375 59 CITY OF OAK PARK HEIGHTS, MINNESOTA INSURANCE IN FORCE Exhibit 3 December 31, 1997 .dW IL UI II Ild IIII IIIIIIIIIIIall, IdIl I W'II,IIlJIYILLJYIII IL ,II II'—JIIYI, ldu lLlW I I al 1Y1lLIll. Ill 1111I W111.[Ill0,1,YYIIll Yd1IYI I.Ilill I d— ad Iiii I, all ill LLl Ill I difill all I,dlWWW1u I'll 1111111Y1'I,YYIAkall ll d Ill ,a1111,. IYI'tld YYUYLYWill Id' .11dall III YYYbII Ilia— laid ;IISILJY 11 I IIIad IILYl :kill a aiIIIIIIIad, Ili y ll tld ltl vl u,ialla" 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 Meeting Law Policy - Defenses Costs 20,000 60 CITY OF OAK PARK HEIGHTS, MINNESOTA FUTURE SCHEDULED TAX LEVIES Exhibit 4 December 31, 1997 Special Taxing District Year Of G.O. Refunding G.O. Improvement Collection Bonds of 1992 Bonds of 1995 Total 1998 $25,000 $58,410 $83,410 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 $75,000 $478,410 $553,410 61 CITY OF OAK PARK HEIGHTS, MINNESOTA TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Exhibit 5 1997/1998 1996/1997 Taxable Valuations: Real estate $5,987,202 $6,591,894 Personal property 120,878 136,796 Fiscal disparity: Contribution (663,765) (750,991) Distribution 300,520 313,429 Captured tax increment value (47,749) (143,528) Total $5,697,086 $6,147,600 Tax Levy: City Wide: General revenue $1,440,637 $1,371,254 Debt service 58,410 - Total City Wide 1,499,047 1,371,254 Storm Sewer District: G.O. Refunding Bonds of 1992 25,000 23,644 Total Tax Levy $1,524,047 $1,394,898 Tax Capacity Rate: City Wide: General revenue 25.336% 22.270% Debt service 1.027% 0.000% Total City Wide 26.363% 22.270% Storm Sewer District: Storm Sewer Bonds of 1982 0.778% 0.628% Total 27.141% 22.898% Note: The tax levies shown above represent net tax levies after reduction for state aids. 62 CITY OF OAK PARK HEIGHTS, MINNESOTA SCHEDULE OF CONSTRUCTION COSTS Exhibit 6 December 31, 1997 Legal Expended and Current Prior Contractor Engineer Fiscal Other Total Year Years River Hills 2nd Addition $173,386 $30,706 $1,189 $13,904 $219,185 $65 $219,120 Street Reconstruction 998,838 226,743 4,866 68,518 1,298,965 24,285 1,274,680 Valley View Estates 257,813 55,640 1,879 6,766 322,098 7,162 314,936 Brackey - Oak Park Pond 198,941 31,888 2,240 1,209 234,278 234,278 - Brackey Outlot - A & B 57,664 10,613 2,264 489 71,030 71,030 - AAE - 58th Street - Phase 11 440,467 73,846 2,080 11,269 527,662 8,879 518,783 AAE - Autumn Ridge 177,317 52,791 742 1,976 232,826 6,584 226,242 AAE - Brackey Addition 223,286 38,496 2,129 3,502 267,413 50,911 216,502 AAE - 58th Street - Phase III - 397 1,913 49,525 51,835 24,421 27,414 AAE - Haase Addition 65,857 15,371 741 608 82,577 11,089 71,488 AAE - Autumn Ridge - 2nd Addition 303,132 52,706 486 2,847 359,171 3,150 356,021 AAE - Autumn Ridge - 3rd Addition 163,917 29,537 472 6,543 200,469 17,553 182,916 Total - All Funds $3,060,618 $618,734 $21,001 $167,156 $3,867,509 $459,407 $3,408,102 63 CITY OF OAK PARK HEIGHTS, MINNESOTA SCHEDULE OF SOURCES AND USES 0F FUNDS Exhibit FOR ST. C80[X MALL TAX INCREMENT DISTRICT December 3l,!V97 Accounted Original for in Current Amount Budget Prior Years Year Deouobuiva Sources offunds: Tax increments received (including interest) $1,780 $893,470 $135,187 %671,343 Uses offunds: Developer assistance 960.008 531 78,206 350 5Xth Street improvements 170,000 150,079 ' 19,921 Other improvements: Street reconstruction 520 145,800 - 374,200 Other ' 1.419 - (1,419) Administrative 50,000 - 50,000 Total uses offunds 1,700,000 829,004 78,206 792 Funds remaining (dofiuit) $0 $64,466 $56,981 ($121 The City is the administering authority for the St. Croix Mall Tax Increment District. The district was established August 7 pursuant toM8469.l74 and ia scheduled to terminate ou December 3l,l99X. There have been uo bonds issued uaof December 3l 1097. 64 STATISTICAIL SECTION 65 CITY OF OAK PARK HEIGHTS, MINNESOTA GENERAL AND SPECIAL REVENUE FUNDS Table 1 EXPENDITURES BY FUNCTION Years 1988 Through 1997 (UNAUDITED) �� ,vu�:��:,�u�dr,��d�W:, y ,, ru,;... ��y: ; : W, .,,.: Ww� ,:,�����,�,,,�.W,:�,�lia„� .... ��: �; �, �uW��WWa��w,; , �, �,,:: u,, �, ��We, �,,•,. ouu,��,�,�,�;d�,,,:,,,,� „ Streets General Public and Capital Year Total Government Safety Highways Sanitation Recreation Outlay 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 1997 2,034,181 507,902 847,015 99,412 313,302 211,244 55,306 66 CITY OF OAK PARK HEIGHTS, MINNESOTA GENERAL AND SPECIAL REVENUE FUNDS Table 2 REVENUE BY SOURCE Years 1988 Through 1997 (UNAUDITED) auumww, wouwa, �uiuuw: wuuwe�uuwiwru��u�muanuuxiuwuwu• m, oariw: e, uw�m,.. u. , w..,,,..., , w. , ..:._ ,..,,. ,., , ....,...,,.,.......,.,., ....,.......,,. , , .............. ........ ...... ....,., .,.... .,., ...,,.,...,, .,.. Licenses Charges Fines Interest Inter- and for and on Year Total Taxes governmental Permits Services Forfeits Investments Miscellaneous 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 1997 2,156,948 1,387,227 167,132 204,986 216,536 60,682 56,501 63,884 67 CITY OF OAK PARK HEIGHTS, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Table 3 Years 1988 Through 1997 (UNAUDITED) Percent Total of Collection Delinquent Current Delinquent Total as a Outstanding Percent of Taxes Total Current Tax Levy Tax Tax Percent Delinquent Current Payable Tax Levy Collections Collected Collections Collections of Levy Taxes Levy 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% 1997 1,469,247 1,460,795 99.42% 4,194 1,464,989 99.71% 10,946 0.75% * 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. 68 CITY OF OAK PARK HEIGHTS, MINNESOTA SPECIAL ASSESSMENT COLLECTIONS Table 4 Years 1988 Through 1997 (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 Payable Due Collected Due Collected Due Bills) 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 1997 166,723 162,433 97.43% 1,743 98.47% 6,582 * 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. 69 CITY OF OAK PARK HEIGHTS, MINNESOTA PRINCIPAL TAXPAYERS (Ten Largest Taxpayers) Table 5 Taxes Payable in 1997 (UNAUDITED) J'1L:W14LIY+Ji1'll + inu' „ +e uuuie,uu v. uaii,u ru+u, uu ei, ,, ',i uiiul,Y+1 YbYitlddl 'al4Y+w41u11LLalLe1'IYYYI LU,1YYeY Y114u111Yw 'wYUWWd1YLLUU'Wu'Wwlub WlAu J.dIYLdWYWIII'JYYJ.Y1111JL1WY J. III'Y' Ia'JLYr1Y Y'WYYI4NlxIWYLV IWYY411 Percent of Percent of Total Net Total Tax Market Market Tax Capacity Property Taxpayer Value Value Capacity Value Classification Northern States Power $72,935,300 32.7% $4,068,608 60.5% Public Utilities Watson Centers Inc 3,549,900 1.6% 197,152 2.9% Commercial Watson Centers Inc 3,313,600 1.5% 182,098 2.7% Carmnercial Northern States Power 2,898,600 1.3% 160,980 2.4% Electric Utilities Wal -Mart Stores Inc 2,588,000 1.2% 141,800 2.1% Commercial Oak Ridge Place of Oak Park 2,565,100 1.1% 102,486 1.5% Res. over 3 units Northern States Power 1,656,700 0.7% 92,416 1.4% Public Utilities Oak Park Associates 1,821,600 0.8% 72,779 1.1% Res. over 3 units Watson Centers Inc 881,000 0.4% 48,925 0.7% Commercial 158 Club 901,600 0.4% 48,354 0.7% Commercial Totals $93,111,400 41.7% $5,115,598 76.0% Total City $223,205,500 $6,147,600 SOURCE: Washington County Auditor - Treasurer Taxation Division. NOTES: (1) This list is based only on parcels paying more than $30,000 net tax (2) If a taxpayer has property consisting of more than one classification, only one is shown. 70