HomeMy WebLinkAboutAnnual Financial Report CITY OF OAK PARK HEIGHTS, MINNESOTA
ANNUAL- FINANCIAL. REPORT
DECEMBER 31, 1998
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CITY OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
Number
Organization 1
Independent Auditor's Report 3
General nirpose Financial Statements
Combined Balance Sheet - All Fund Types and Account Groups Statement 1 8
Combined Statement of Revenue, Expenditures and Changes in Fund Balance -
All Governmental Fund Types Statement 2 10
Combined Statement of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual - General Fund Statement 3 11
Combined Statement of Revenue, Expenses and Changes in Retained Earnings -
Proprietary Fund Type Statement 4 12
Combined Statement of Cash Flows - Proprietary Fund Type Statement 5 13
Notes to Financial Statements 15
Combining, Individual Fund and Account Group Financial Statements:
General Fund:
Balance Sheet Statement 6 41
Statement of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual Statement 7 42
Special Revenue Funds:
Combining Balance Sheet Statement 8 48
Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 9 49
Debt Service Funds:
Combining Balance Sheet Statement 10 50
Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 11 51
Capital Project Funds:
Combining Balance Sheet Statement 12 52
Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 13 57
Enterprise Fund:
Balance Sheet Statement 14 62
Statement of Revenue, Expenses and Changes in Retained Earnings Statement 15 63
Statement of Cash Flows Statement 16 64
CITE' OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
Number
Agency Funds:
Combining Balance Sheet Statement 17 65
Combining Statement of Changes in Assets and Liabilities Statement 18 66
General Fixed Asset Account Group:
Schedule of General Fixed Assets Statement 19 67
General Long -Term Debt Account Group:
Schedule of General Long -Term Debt Statement 20 68
Supplementary Financial Information
Combined Schedule of Indebtedness Exhibit 1 70
Debt Service Payments to Maturity:
Revenue Bonds and General Debt Bonds Exhibit 2 71
Insurance in Force Exhibit 3 72
Future Scheduled Tax Levies Exhibit 4 73
Taxable Valuations, Tax Levies and Tax Rates Exhibit 5 74
Schedule of Construction Costs Exhibit 6 75
Statistical Section
General and Special Revenue Funds - Expenditures by Function -
Years 1989 through 1998 Table 1 78
General and Special Revenue Funds - Revenue by Source -
Years 1989 through 1998 Table 2 79
Property Tax Levies and Collections - Years 1989 through 1998 Table 3 80
Special Assessment Collections - Years 1989 through 1998 Table 4 81
Principal Taxpayers Table 5 82
CITY OF OAK PARK HEIGHTS, MINNESOTA
ORGANIZATION
December 31, 1998
Term Expires
Mayor:
David Schaaf December 31, 2000
Council Members:
Janet Robert December 31, 1998
Mark Swenson December 31, 1998
David Beaudet December 31, 2000
Jerry Turnquist December 31, 2000
Administrator:
Thomas Melena Appointed
Deputy Clerk/Finance Director:
Judy Holst Appointed
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December 31, 1998, and the results of its operations and the cash flows of its proprietary fund
types for the year then ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated
March 3, 1999 on our consideration of the City of Oak Park Heights, Minnesota's internal
control over financial reporting and a report dated March 3, 1999 on its compliance with
certain provisions of laws and regulations.
Our audit was made for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The combining and individual fund and account group financial
statements, supporting schedules and supplementary information listed in the table of
contents are presented for purposes of additional analysis and are not a required part of the
general purpose financial statements of the City of Oak Park Heights, Minnesota. Such
information, except for that portion marked "unaudited," on which we express no opinion,
has been subjected to the auditing procedures applied in the audit of the general purpose
financial statements and, in our opinion, is fairly presented in all material respects in relation
to the general purpose financial statements taken as a whole.
March 3, 1999
HLB TAUTGES DPATH, LTD.
Certified Public Accountants
5
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GENERAL PURPOSE
FINANCIAL STATEMENTS
CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINED BALANCE SHEET -
ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 1998
With Comparative Totals For December 31, 1997
Governmental Fund Types
Special Debt
Assets General Revenue Service
Cash and investments $1,163,632 $130,192 $541,554
Interfund loan receivable - - -
Accrued interest receivable - - _
Accounts receivable 18,767 - -
Due from other governmental units 23,326 - -
Due from developers - - -
Prepaid items - - -
Inventory 2,624 _ _
Taxes receivable:
Delinquent 16,077 - 786
Due from County 39,147 - 2,243
Special assessments receivable - - 281,920
Fixed assets (net of accumulated depreciation) - - -
Amount available in general fund - - -
Arnount available in debt service fund - - -
Amount to be provided for retirement of general long -term debt - - -
Total assets $1,263,573 $130,192 $826,503
Liabilities, Equity and Other Credits
Liabilities:
Cash overdraft $ _ $ _ $
Interfund loan payable - 260,000 -
Escrow deposits payable - - -
Accounts payable 47,412
Salaries payable 6,311
Contracts payable _ _
Due to other governmental units 6,090 - -
Due to developers - - -
Compensated absences payable - _ _
Contract for deed payable - - -
Bonds payable - - _
Deferred revenue 17,097 - 282,062
Total liabilities 76,910 260,000 282,062
Equity and other credits:
Invested in general fixed assets - - -
Contributions - net - - _
Retained earnings:
Reserved _ - -
Unreserved _ - -
Fund balance:
Reserved 2,624 - 544,441
Unreserved:
Designated 1,160,912 3,242 -
Undesignated 23,127 (133,050) -
Total equity and other credits 1,186,663 (129,808) 544,441
Total liabilities, equity and other credits $1,263,573 $130,192 $826,503
The accompanying notes are an integral part of these financial statements.
8
Statement 1
Proprietary Fiduciary Account Groups Totals
Capital Fund Type Fund Type General General Long- (Memorandum Only)
Project Enterprise Agency Fixed Assets Term Debt 1998 1997
$5,185,002 $508,312 $33,000 $ $ - $7,561,692 $6,069,466
260,000 _ - - 260,000 75,000
- 146,730 - - 146,730 131,530
144,520 - - - 163,287 156,641
- 20,733 - - - 44,059 37,537
411 - 42,005 - - 42,416 149,889
- 18,757 - - - 18,757 19,574
2,624 3,056
- 16,863 10,947
- w - - 41,390 (41,876)
664,234 - - _ - 946,154 497,566
- 4,307,159 - 2,451,402 - 6,758,561 6,157,155
- - - 76,617 76,617 95,814
- 544,441 544,44.1 519,084
- - 3,235,559 3,235,559 1,505,916
$6,109,647 $4,999,481 $221,735 $2,451,402 $3,856,617 $19,859,150 $15,387,299
$ - $ - $181,764 $ - $ - $181,764 $223,021
- - - 260,000 75,000
9,347 - 33,000 - - 42,347 29,000
20,650 52,201 6,253 - 126,516 108,620
- 2,462 - - - 8,773 17,116
72,458 _ _ _ _ 72,458 130,431
148 16,028 - - - 22,266 16,467
- - 718 - - 718 1,171
13,389 - w 76,617 90,006 95,814
- - 20,000
- - - - 3,780,000 3,780,000 2,005,000
664,090 _ _ _ - 963,249 515,721
766,693 84,080 221,735 0 3,856,617 5,548,097 3,237,361
- - - 2,451,402 - 2,451,402 1,837,486
- 4,073,875 - - - 4,073,875 4,082,158
- 661,765 - - - 661,765 661,765
- 179,761 - - - 179,761 275,212
260,000 - - - - 807,065 522,140
5,108,210 - - - - 6,272,364 4,778,358
(25,256) - - - - (135,179) (7,181)
5,342,954 4,915,401 0 2,451,402 0 14,311,053 12,149,938
$6,109,647 $4,999,481 $221,735 $2,451,402 $3,856,617 $19,859,150 $15,387,299
The accompanying notes are an integral part of these financial statements.
9
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, 1998
With Comparative Totals For The Year Ended December 31, 1997
Totals
Special Debt Capital (Memorandum Only)
General Revenue Service Project 1998 1997
Revenue:
General property taxes $1,479,490 $ - $84,375 $ - $1,563,865 $1,410,875
Tax increment taxes - - - 43,834 43,834 130,343
Special assessments - - 78,521 96,097 174,618 345,641
Intergovernmental 193,148 7,220 - 8,192 208,560 168,468
Licenses and permits 125,678 - - - 125,678 204,986
Charges for services 186,799 - - - 186,799 216,536
Fines and forfeits 60,183 - - - 60,183 60,682
Interest on investments 45,848 4,064 29,859 207,074 286,845 291,264
Connection charges - - - 796,131 796,131 288,283
Escrow /interfund loan interest - - 10,000 10,000 231
Refunds and reimbursements 44,058 2,531 - 189,936 236,525 229,068
Donations and contributions 500 - 22,907 23,407 38,170
Other 6,413 1,850 -• - 8,263 12,726
Total revenue 2,142,117 15,665 192,755 1,374,171 3,724,708 3,397,273
Expenditures:
Current:
General government 774,444 - - - 774,444 507,902
Public safety 834,268 1,025 - - 835,293 847,015
Public works 139,948 - - - 139,948 99,412
Sanitation - - - - - 313,302
Recreation 120,255 - - - 120,255 211,244
Community development 25,850 17,621 - - 43,471 -
Capital outlay 32,005 141,153 - 138,180 311,338 92,919
Debt service:
Principal - - 215,000 - 215,000 210,000
Interest - - 93,905 - 93,905 102,490
Professional services - - - 73,110 73,110 52,145
Developer assistance - - - 26,300 26,300 78,206
Administrative charge - - - 27,009 27,009 -
Construction costs - - - 1,297,353 1,297,353 495,970
Total expenditures 1,926,770 159,799 308,905 1,561,952 3,957,426 3,010,605
Revenue over (under) expenditures 215,347 (144,134) (116,150) (187,781) (232,718) 386,668
Other financing sources (uses):
Bond proceeds - - 16,507 1,941,791 1,958,298 -
Operating transfers from other funds 10,591 - 125,000 848,194 983,785 833,886
Operating transfers to other funds (281,323) - - (777,109) (1,058,432
(732,683)_
Total other financing sources (uses) (270,732) 0 141,507 2,012,876 1,883,651 101,203
Net increase (decrease) in fund balance (55,385) (144,134) 25,357 1,825,095 1,650,933 487,871
Fund balance - January 1 1,246,347 14,326 519,084 3,513,560 5,293,317 4,805,446
Residual equity transfer (4,299) - - 4,299 - -
Fund balance - December 31 $1,186,663 ($129,808) $544,441 $5,342,954 $6,944,250 $5,293,317
The accompanying notes are an integral part of these financial statements.
10
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, 1998
With Comparative Actual Amounts For The Year Ended December 31, 1997
1998
Favorable
(Unfavorable) 1997
Budget Actual Variance Actual
Revenue:
General property taxes $1,440,637 $1,479,490 $38,853 $1,387,227
Intergovernmental 190,666 193,148 2,482 164,352
Licenses and permits 174,425 125,678 (48,747) 204,986
Charges for services 147,709 186,799 39,090 216,536
Fines and forfeits 54,600 60,183 5,583 60,682
Interest on investments 49,500 45,848 (3,652) 55,885
Refunds and reimbursements 40,950 44,058 3,108 51,108
Donations and contributions - 500 500 50
Other - 6,413 6,413 4,226
Total revenue 2,098,487 2,142,117 43,630 2,145,052
Expenditures:
Current:
General government 713,045 774,444 (61,399) 507,902
Public safety 855,200 834,268 20,932 845,287
Public works 137,235 139,948 (2,713) 99,412
Sanitation - - - 313,302
Recreation 131,205 120,255 10,950 211,244
Community development 35,825 25,850 9,975 -
Capital outlay 38,525 32,005 6,520 52,018
Total expenditures 1,911,035 1,926,770 (15,735) 2,029,165
Revenue over expenditures 187,452 215,347 27,895 115,887
Other financing sources (uses):
Operating transfers from other funds 10,591 10,591 - -
Operating transfers to other funds (281,323) (281,323) - (182,133)
Total other financing sources (uses) (270,732) (270,732) - (182,133)
Net increase (decrease) in fund balance ($83,280) (55,385) $27,895 (66,246)
Fund balance - January 1 1,246,347 1,312,593
Residual equity transfer (4,299) -
Fund balance - December 31 $1,186,663 $1,246,347
The accompanying notes are an integral part of these financial statements.
11
CITE' 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, 1998
With Comparative Amounts For The Year Ended December 31, 1997
Enterprise Fund
1998 1997
Operating revenue:
Customer billings $611,537 $489,759
Penalties 8,046 6,692
Plumbing permits 1,110 1,410
Meter sales 6,178 6,683
Charges for services 10,675 4,154
Total operating revenue 637,546 508,698
Operating expenses:
Personal services 147,827 -
Contractual services 391,076 80,652
Refunds and reimbursements 550 888
MCES charges 213,651 226,198
Materials and supplies 11,663 16,659
Administrative and personnel charges 63,525 102,100
Depreciation 118,696 112,284
Total operating expenses 946,988 538,781
Net income (loss) from operations (309,442) (30,083)
Other income:
Interest on investments 32,091 37,777
Refund of prior SAC charges - 54,150
Total other income 32,091 91,927
Net income (loss) before operating transfers (277,351) 61,844
Other financing sources (uses):
Operating transfer from other funds 190,400 -
Operating transfer to other funds (115,753) (101,203)
Total other financing sources (uses) 74,647 (101,203)
Net income (loss) (202,704) (39,359)
Other increases:
Credit arising from transfer of depreciation to
contributions from property owners 107,253 101,203
Net increase (decrease) in retained earnings (95,451) 61,844
Retained earnings - January 1 936,977 875,133
Retained earnings - December 31 $841,526 $936,977
The accompanying notes are an integral part of these financial statements.
12
CITY OR OAK PARK HE IGHTS, MINNESOTA
COMBINED STATEMENT OF CASH FLOWS - Statement 5
PROPRIETARY FUND TYPE
For The Year Ended December 31, 1998
With Comparative Amounts For The Year Ended December 31, 1997
Enterprise Fund
1998 1997
Cash flows from operating activities:
Operating income (loss) ($309,442) ($30,083)
Refund of prior SAC charges - 54,150
Adjustments to reconcile operating income to
net cash flows from operating activities:
Depreciation 118,696 112,284
Change in assets and liabilities:
Decrease (increase) in receivables (15,342) (7,715)
Decrease (increase) in prepaid expenses 817 3,664
Increase (decrease) in payables 76,057 (34,638)
Net cash flows from operating activities (129,214) 97,662
Cash flows from noncapital financing activities:
Operating transfers from other funds 190,400 -
Operating transfers to other funds (107,253) (101,203)
Net cash flows from noncapital financing activities 83,147 (101,203)
Cash flows from capital and related financing activities:
Operating transfers to other funds (8,500) -
Acquisition of fixed assets (7,216) (8,294)
Net cash flows from capital and related financing activities (15,716) (8,294)
Cash flows from investing activities:
Interest received on investments 32,091 37,777
Net increase (decrease) in cash and cash equivalents (29,692) 25,942
Cash and cash equivalents - January 1 538,004 512,062
Cash and cash equivalents - December 31 $508,312 $538,004
Significant noncash investing, capital and financing activities:
During 1997 and 1998, fixed assets were contributed to the Enterprise Fund as follows:
1998 1997
Water Operating Fund $55,053 $266,417
Sewer Operating Fund 43,917 180,016
Total $98,970 $446,433
The accompanying notes are an integral part of these financial statements.
13
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14
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
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 Units
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.
Separate financial statements are not prepared for the HRA.
The EDA of the City of Oak Park Heights is a separate legal entity. The EDA board members are
substantially the same as the City council in that four of the five board members are council members
and the fifth board member is the City finance director. Separate financial statements are not prepared
by the EDA.
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.
15
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
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.
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 Aeencv Funds - to account for assets held by a governmental unit in a trustee
capacity or as an agent for individuals, private organizations, other governmental units,
and /or other funds. These include (a) expendable trust funds, (b) nonexpendable trust funds,
(c) pension trust funds, and (d) agency funds.
ACCOUNT GROUPS
The governmental fund types are designed to account for the financial flow of a particular
fund; therefore, they generally include only current assets and current liabilities on their
balance sheets. The City maintains two account groups to account for noncurrent assets and
long -term liabilities as follows:
General Fixed Assets - The City maintains a separate account group which contains the fixed
assets used in the governmental fund type operations. They are assets of the City as a whole
and not of individual funds.
General 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.
Co 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.
16
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
WASIBRENNIMMEW
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.
The modified accrual basis of accounting is followed by the City for its Governmental Funds and
Fiduciary Funds. Under this method of accounting, revenues are recognized when they become
susceptible to accrual - that is, when they become both measurable and available to finance
expenditures of the fiscal period. "Measurable" means the amount of the transaction can be
determined and "available" means collectible within the current period or soon enough thereafter to be
used to pay liabilities of the current period. Major revenue sources susceptible to accrual include
property taxes (excluding delinquent taxes received over 60 days after year end), special assessments,
intergovernmental revenues, charges for services and interest on investments. Major revenue sources
not susceptible to accrual include licenses and permits, fees, and miscellaneous revenues. Such
revenues are recorded as revenue when received because they are not measurable until collected.
Expenditures are generally recognized in the accounting period when the fund liability is incurred,
except for interest on general long -term debt which is recognized when due.
The accrual basis of accounting is followed for the Proprietary Funds. Under this method of
accounting, revenues are recognized during the accounting period in which they are earned and
become measurable and expenses are recognized in the accounting period in which they are incurred if
measurable. Governmental Accounting Standards Board (GASB) Statement #20, Accounting and
Financial Reporting for Proprietary Funds and Other Governmental Entities that Use Proprietary
Funds provides proprietary activities with a choice of authoritative guidance issued after November
30, 1989. The City of Oak Park Heights has elected to follow GASB pronouncements exclusively
after that date.
The government reports deferred revenue on its combined balance sheet. Deferred revenues arise
when a potential revenue does not meet both the "measurable" and "available" criteria for recognition
in the current period. Deferred revenues also arise when resources are received by the government
before it has a legal claim to them, as when grant monies are received prior to the incurrence of
qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or
when the government has a legal claim to the resources, the liability for deferred revenue is removed
from the combined balance sheet and revenue is recognized.
The City has reported as deferred revenues the amount of $963,249, which consists of the following:
Unearned grants $1,020
Property taxes receivable 16,862
Special assessments receivable 945,367
Total $963,249
17
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
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.
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.
18
CITY OF OAK PARIS HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
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. All
amounts over budget have been approved by the City council through the disbursement
approval process.
9. The City Council may authorize transfer of budgeted amounts between City funds.
F. CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in
authorized investments. Earnings from investments are allocated to individual funds on the basis of
the fund's equity in the cash and investment pool.
Investments are stated at fair value, based upon quoted market prices.
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. PROPERTY TAB 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 1998 and 1997
totaled $76,858 and $72,735, respectively. Receipt of property taxes from this "fiscal disparities pool"
does not increase or decrease total tax revenue.
19
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
H. 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.
I. 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.
J. 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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
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.
CAPITALIZATION OF INTEREST
In accordance with FASB Statement 62, the City adopted the policy of capitalizing net interest costs
on funds borrowed to finance the construction of Proprietary Fund fixed assets. The City did not
borrow to finance the construction of Proprietary Fund fixed assets in 1997 or 1998.
K. 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.
L. 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.
21
CITY OF OAK PARIS HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
M. 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.
N. 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.
Oe 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.
Po 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.
Q. 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.
22
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
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.
Balances at December 31, 1998 are as follows:
Bank Carrying
Balances Amount
1) Insured or collateralized by securities held by the City
or its agent in the City's name. $6,928,429 $6,312,441
2) Collateralized with securities held by the pledging institution
trust department in the City's name. - -
3) Uncollateralized or collateralized with securities
not in the City's name. 251,090
Totals $7,179,519 $6,312,441
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.
23
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL, STATEMENTS
December 31, 1998
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.
Balances at December 31, 1998 were:
Carrying
Amount
(at Fair Value)
Investments:
Shared investment pools $1,067,387
Deposits 6,312,441
Change funds 100
Total $7,379,928
At December 31, 1998, the City held no investments subject to custodial credit risk classification.
Note 3 FIXED ASSETS
A summary of changes in general fixed assets is as follows:
Balance Balance
1/1/98 Additions Deletions 12/31/98
Land $174,231 $308,628 $ - $482,859
Land improvements 326,601 - - 326,601
Buildings and structures 864,726 158,471 - 1,023,197
Machinery and equipment 280,715 73,044 30,228 323,531
Furniture and fixtures 191,213 121,009 17,008 295,214
Totals $1,837,486 $661,152 $47,236 $2,451,402
24
CITE' OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
A summary of Enterprise Fund fixed assets at December 31, 1998 is as follows:
Enterprise
Land $60,000
Buildings and structures 1,254,845
Machinery and equipment 141,829
Distribution and collection systems 4,433,445
Total 5,890,119
Less: allowance for depreciation (1, 582,960)
Net fixed assets $4,307,159
Note 4 CITY INDEBTEDNESS
The following is a schedule of changes in City indebtedness for the year ended December 31, 1998:
Balance ]Balance
1/1/98 Additions Deletions 12/31/98
General Long -Term Debt Account Group:
Bonded debt:
General obligation $1,055,000 $ - $105,000 $950,000
Special assessment bonds 950,000 1,990,000 110,000 2,830,000
Compensated absences 95,814 - 19,197 76,617
Contract for deed 20,000 - 20,000 -
Total general long -term debt 2,120,814 1,990,000 254,197 3,856,617
Proprietary funds:
Compensated absences - 13,389 - 13,389
Totals $2,120,814 $2,003,389 $254,197 $3,870,006
All long -term bonded indebtedness outstanding at December 31, 1998 is backed by the full faith and credit of
the City.
25
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
The annual requirement to amortize all debt outstanding at December 31, 1998 including interest payments of
$1,028,781 is as follows:
Year General
Ending Obligation
December 31, Bonds
1999 $553,496
2000 539,688
2001 503,352
2002 507,768
2003 495,967
2004 -2013 2,208,510
Total $4,808,781
It is not practicable to determine the specific year for payment of long -terra accrued compensated absences.
Long -term debt at December 31, 1998 is composed of the following:
Final Authorized
Issue Maturity Interest And Outstanding
Date Date Rate Issued 12/31/98
General Long -Term Debt:
General obligation bonds:
G.O. Refunding Bonds of 1992 9/01/92 12/01/00 5.48 $150,000 $50,000
G.O. Crossover Refunding Bonds of 1993 4/01/93 12/01/06 4.71 1,140,000 900,000
Special assessment bonds:
G.O. Improvement Bonds of 1995 7/1/95 12/1/05 4.69 1,130,000 840,000
G.O. Improvement Bonds of 1998 10/1/98 12/1/13 4.19 1,990,000 1,990,000
Compensated absences payable 90,006
Total general long -term debt $3,870,006
26
CITY OF OAK PARIS HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
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 1997 and 1998 is computed as follows:
December 31,
1998 1997
Market value (for pay 1998) $238,176,000 $223,205,500
Debt limit percentage 2.00% 2.00%
Debt limit 4,763,520 4,464,110
Amount of debt applicable to debt limit:
Total bonded debt 3,780,000 2,005,000
Less:
Non applicable debt:
Revenue bonds (900,000) (985,000)
Special assessment bonds (2,830,000) (950,000)
Cash and investments in
corresponding Debt Service Funds (31,850) (29,770)
Total amount of debt applicable to debt limit 18,150 40,230
Legal debt margin $4,745,370 $4,423,880
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.
27
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
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 (651)296 -7460 or 1- 800 - 652 -9026.
B. FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These
statutes are established and amended by the state legislature. The City makes annual contributions to
the pension plans equal to the amount required by state statutes. PERF Basic Plan members and
Coordinated Plan members are required to contribute 8.75% and 4.75 %, 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: 11.43% for Basic Plan PERF members, 5.18% for Coordinated Plan PERF members, and
11.40% for PEPFF members. The City's contributions to the Public Employees Retirement Fund for
the years ending December 31, 1998, 1997, and 1996 were $19,695, $14,070, and $15,758,
respectively. The City's contributions to the Public Employees Police and Fire Fund for the years
ending December 31, 1998, 1997 and 1996 were $54,602, $48,046, and $44,851, respectively. The
City's contributions were 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 reflect the actual cost adjustment for 1997 estimated billings.
28
CITE' OF OAK PARIS HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
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, 1998 and 1997 were as
follows:
December 31,
1998 1997
Current value credits $67 $106
Debt service credits - 10,251
Total $67 $10,357
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 $2,400,923 $55,053 $60,381 $2,395,595
Sewer 1,681,235 43,917 46,872 1,678,280
Total $4,082,158 $98,970 $107,253 $4,073,875
Note 9 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, 1998.
Taxes
Payable
in 1998
Current net tax capacity $270,822
Original net tax capacity (as adjusted) (223,073)
Retained captured net tax capacity $47,749
29
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
Note 10 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 two 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 11 DEFICIT FUND BALANCES/RETAINED EARNINGS
The following funds had a fund deficit at December 31, 1998:
Amount
Special Revenue:
Economic Development ($133,050)
Capital Project:
Osgood Highway 36 Intersection (5,447)
Brackey - Oak Park Pond (3,090)
Autumn Ridge 3rd Addition (16,719)
Note 12 CONTINGENCIES
A. LITIGATION
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.
B. FEDERAL AND STATE FUNDS
The City receives financial assistance from federal and state governmental agencies in the form of
grants. The disbursement of funds received under these programs generally requires compliance with
the terms and conditions specified in the grant agreements and is subject to audit by the grantor
agencies. Any disallowed claims resulting from such audits could become a liability of the applicable
fund. However, in the opinion of management, any such disallowed claims will not have a material
effect on any of the financial statements of the individual fund types included herein or on the overall
financial position of the City at December 31, 1998.
30
CITE' OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
C. TAX INCREMENT DISTRICTS
The City's tax increment districts are subject to review by the State of Minnesota Office of the State
Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the
applicable fund. Management has indicated that they are not aware of any instances of noncompliance
which would have a material effect on the financial statements.
Note 13 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, 1998 totaled $469,400.
31
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
Note 14 DESIGNATIONS AND RESERVATIONS OF FUND EOUITY
At December 31, 1998 and 1997 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,
1998 and 1997 are shown on the various balance sheets as segregations of the fund equity. A summary of such
designations is as follows:
December 31,
1998 1997
General Fund:
Reserved for inventory $2,624 $3,056
Designated for cash flow 702,000 760,000
Designated for contingent employee benefit 101,617 120,814
Designated for general contingency 326,000 308,000
Designated for capital improvements 6,204 -
Designated for employee insurance benefits 25,091 -
Special Revenue Funds:
Designated for special revenue program 3,242 14,326
Debt Service Funds:
Reserved for debt service 544,441 519,084
Capital Project Funds:
Reserved for interfund loan receivable 260,000 -
Designated for capital improvements 5,080,647 3,541,989
Designated for committed contracts 27,563 36,285
Enterprise Fund:
Reserved for debt service reserve 661,765 661,765
Totals $7,741,194 $5,965,319
Note 15 COMMITMENTS
Construction commitments at December 31, 1998 were composed of the following:
Expended Remaining
Contract as of Contract
Description Authorized 12/31/98 Commitment
60th Street/Neal Avenue $52,150 $30,505 $21,645
Brackey West Addition 627,597 604,992 22,605
City Ball Remodeling 81,162 79,711 1,451
32
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
Note 16 MAJOR TAXPAYER
The City has one major taxpayer, Northern States Power, the total tax capacity value for this taxpayer
represented approximately 48% of the City's total tax capacity value for taxes payable in 1998.
Note 17 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 $10,000 per employee with a $135,284 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.
Note 18 CONDUIT DEIST OBLIGATIONS
From time to time, the City has issued Rental Housing or Industrial Revenue Bonds to provide financial assistance to
private- sector entities for the acquisition and construction of rental housing, office space or a clinic deemed to be in
the public interest. The bonds are secured by the property financed and are payable solely from payments received on
the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the
private - sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is
obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the
accompanying financial statements.
As of December 31, 1998, there were two series of Industrial Revenue Bonds outstanding. The principal amount
payable at December 31, 1998 was $38 million.
33
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
Note 19 INTERFUND LOANS
There were interfund loans receivable and payable at December 31, 1998 as follows:
Fund Receivable Payable
Economic development $ - $260,000
Capital revolving fund 260,000 -
The loan will be repaid from yet undetermined sources by July 1, 2003.
Note 20 YEAR 2000 ISSUE (UNAUDITED)
GENERAL DESCRIPTION
The City is currently addressing year 2000 issues relating to its computer systems and other electronic
equipment. The year 2000 issue refers to the fact that many computer programs use only the last two digits
to refer to a year. Therefore, both 1900 and 2000 would be referred to as "00." Computer programs have
to be adjusted to recognize the difference between those two years or the programs will fail or create errors.
Also, some programs may not be able to recognize that 2000 is a leap year. Further, the year 2000 issue
could affect electronic equipment — such as environmental systems, elevators, and vehicles — containing
computer chips that have date recognition features.
In 1998, the City created a Task Force to help address the year 2000 issue. The Task Force has identified
various computer systems and pieces of electronic equipment that are critical to conducting the entity's
operations and that need to be year 2000 compliant. The Task Force is monitoring year 2000 compliance
efforts at the various departments and is providing assistance and assigning resources to accelerate
compliance for all mission- critical systems and equipment. The Task Force also is monitoring and
assisting the department's efforts to develop contingency plans should year 2000 failures adversely affect
the department's mission- critical operations. Individual departments are solely responsible for the year
2000 compliance of systems and equipment that are not mission - critical.
RESOURCES COMMITTED
As of year end, the City has contracted with several vendors for assistance in addressing the year 2000
issue relating its computer systems and other electronic equipment. Those commitments are:
Administrative and financial accounting system $50,000
Electric system 31,400
Communications systems 20,300
Police emergency response equipment 3,000
Total $104,700
34
CITY OF OAK PARIS HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
STAGES OF WORK
The City has identified three computer systems and two electronic equipment groups that are mission -
critical (that is, critical to conduction operations) and is subjecting those systems and equipment to the
following stages of work to address year 2000 issues:
• Awareness stage — Establishing a budget and project plan for dealing with the year 2000 issue.
• Assessment stage — Identifying the systems and components for which year 2000 compliance
work is needed.
• Remediation stage — Making changes to systems and equipment.
• Validation /testing stage — Validating and testing the changes that were made during the
remediation stage.
The City's year 2000 remediation work for its mission - critical systems and electronic equipment are in the
following stages of work.
Administrative and financial accounting systems. The City is currently remediating its financial reporting,
payroll and employee benefit systems. Validation and testing of these systems have yet to be completed.
Remaining contracted amounts of $50,000 are committed to this project as of December 31, 1998.
Electrical systems. The City has completed all testing and validation of its portion of the electrical systems
and has purchased a back -up system in case of power outage. Remaining contract amounts of $31,400 are
committed to this project as of December 31, 1998.
Communications systems. The City has completed all testing and validation of its portion of the
communications systems. Remaining contracted amounts of $20,300 are committed to this project as of
December 31, 1998.
911 emergencv reportine system. Washington County is responsible for the 911 emergency reporting
system, therefore, the City has no control over the testing and validation of this system.
Police emeraencv response equipment. The City has completed all testing and validation of its portion of
the police emergency response equipment. Remaining contracted amounts of $3,000 are committed to this
project as of December 31, 1998.
Water supply system equipment. The City is currently remediating the water supply system equipment.
Validation and testing of the equipment has yet to be completed.
35
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
SEC DISCLOSURE.
The City has identified external parties whose preparedness for year 2000 could affect the City's ability to
provide services and meet its obligations, including the timely payment of its indebtedness. Examples of
such external parties are as follows:
External Party Description
Washington County The County is responsible for billing and
collecting property taxes and special
assessments. The County reports that it is
currently remediating its billing and collection
systems.
The County is responsible for Police
Department computer file records systems,
dispatch, and 911 emergency reporting systems
and they report that they have completed all
testing and validation of their computer system.
Financial Institutions Various financial institutions are the paying
agents for the City bond issues. They report that
they have completed all testing and validation of
its wire transfer and paying agency related
systems.
Investments of the City are held by various
financial institutions. They report that they are
currently testing and validating all data
processing systems.
US West US West Communications is responsible for the
Communications City's telephone system. They report they have
completed all testing and validation.
Northern States Power Northern States Power Company is responsible
Company for the City's electrical supply. They report
they are currently remediating their computer
system.
The City has expended approximately $97,900 (not including internal staff time) associated with fixing
year 2000 issues and estimates future expenditures of approximately $104,700. The City has not incurred
losses because of the year 2000 issue.
The City is not aware of any liabilities associated with year 2000 issues at December 31, 1998.
36
CITY OF OAK PARK HEIGHTS, MINNESOTA.
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
UNCERTAINTIES
Because of the unprecedented nature of the year 2000 issue, its effects and the success of related
remediation efforts will not be fully determinable until the year 2000 and thereafter. Management cannot
assure that the City is or will be year 2000 ready, that the City's remediation efforts will be successful in
whole or in part, or that parties with whom the City does business will be year 2000 ready.
Note 21 CHANGE IN ACCOUNTING PRINCIPLE
The City implemented Governmental Accounting Standards Board (GASB) Statement No. 31, Accounting and
Financial Reporting Certain Investments and External Investment Pools, during 1998. GASB Statement 31
requires that investments be reported at fair value on the balance sheet with changes in the fair value of investments
reported on the operating statement. The effect of implementing GASB 31 during 1998 was to increase investment
income by approximately $1,200. The effect of implementing GASB 31 was immaterial at December 31, 1997 and
accordingly 1997 financial statements have not been restated.
Note 22 CHANGES IN PRESENTATION
Sanitation activities were reported in the General Fund in 1997 and the Enterprise Fund in 1998. Prior year financial
statements have not been restated. Additionally, individual departments were established in the General Fund in 1998
that were combined with existing departments in 1997. Prior year financial statements have not been restated.
37
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38
COMBINING,
INDIVIDUAL FUND
AND ACCOUNT GROUP
FINANCIAL, STATEMENTS
39
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40
CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL FUND Statement 6
BALANCE SHEET
December 31, 1998
With Comparative Amounts for December 31, 1997
December 31,
Assets 1998 1997
Cash and investments $1,163,632 $1,337,184
Accounts receivable 18,246 27,306
Accounts receivable - certified 521 1,705
Due from other governmental units 23,326 15,256
Inventory 2,624 3,056
Taxes receivable:
Delinquent 16,077 10,805
Due from County 39,147 (41,155)
Total assets $1,263,573 $1,354,157
Liabilities and Fund Balance
Liabilities:
Accounts payable $47,412 $64,652
Salaries payable 6,311 17,116
Due to other governmental units 6,090 14,217
Deferred revenue 17,097 11,825
Total liabilities 76,910 107,810
Fund balance:
Reserved for inventory 2,624 3,056
Unreserved:
Designated for cash flow 702,000 760,000
Designated for contingent employee benefit 101,617 120,814
Designated for general contingency 326,000 308,000
Designated for capital improvements 6,204 -
Designated for employee insurance benefits 25,091 -
Undesignated 23,127 54,477
Total fund balance 1,186,663 1,246,347
Total liabilities and fund balance $1,263,573 $1,354,157
41
CITE' OF OAK PARK HEIGHTS, MINNESOTA
GENERAL FUND Statement 7
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 1 of 6
IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1998
With Comparative Actual Amounts for the Year Ended December 31, 1997
1998
Favorable
(Unfavorable) 1997
Budget Actual Variance Actual
Revenue:
General property taxes:
Current and delinquent $1,440,637 $1,462,506 $21,869 $1,367,012
Payment in lieu of taxes - 10,723 10,723 8,116
Excess TIF - 6,204 6,204 12,059
Other taxes - 57 57 40
Total general property taxes 1,440,637 1,479,490 38,853 1,387,227
Intergovernmental:
Federal:
Safe & Sober 6,000 6,153 153 8,687
Cops Grant 26,000 26,159 159 -
FEMA - 8,109 8,109 -
State:
HACA 74,493 74,464 (29) 73,065
Local Performance aid 5,133 5,133 - 4,186
Police aid 60,000 51,198 (8,802) 44,900
Snow plowing - - - 15,800
Other 2,040 2,689 649 -
County:
Recycling grant 16,500 14,691 (1,809) 16,505
Gravel tax allocation 500 223 (277) 1,109
Met Council planning grant - 4,329 4,329 -
Other - miscellaneous - - - 100
Total intergovernmental 190,666 193,148 2,482 164,352
Licenses and permits 174,425 125,678 (48,747) 204,986
Charges for services:
General government 6,900 14,910 8,010 2,456
Development charge 9,600 12,000 2,400 -
Refuse charge - - - 87,830
Refuse charge - Junker settlement - 28,887 28,887 -
Inspections - City of Bayport 40,675 40,468 (207) 24,150
Administrative - Enterprise Fund 63,525 63,525 - 102,100
Administrative - TIF 27,009 27,009 - -
Total charges for services 147,709 186,799 39,090 216,536
Fines and forfeits 54,600 60,183 5,583 60,682
Interest on investments 49,500 45,848 (3,652) 55,885
Refunds and reimbursements 40,950 44,058 3,108 51,108
Donations and contributions - 500 500 50
Sale of property 6,413 6,413 4,226
Total revenue 2,098,487 2,142,117 43,630 2,145,052
42
CITY OF OAK PARIS HEIGHTS, MINNESOTA
GENERAL FUND Statement 7
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 2 of 6
IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1998
With Comparative Actual Amounts for the Year Ended December 31, 1997
1998
Favorable
(Unfavorable) 1997
Budget Actual Variance Actual
Expenditures:
General government:
Mayor and council:
Current:
Personal services $33,220 $30,097 $3,123 $70,576
Materials and supplies 4,500 3,249 1,251 -
Contractual services 14,260 19,223 (4,963) 8,405
Total current 51,980 52,569 (589) 78,981
Capital outlay - - - 11,352
Total mayor and council 51,980 52,569 (589) 90,333
City administrator:
Current:
Personal services 136,200 142,760 (6,560) 178,594
Materials and supplies 2,200 6,855 (4,655) 3,620
Contractual services 12,850 21,331 (8,481) 14,165
Total current 151,250 170,946 (19,696) 196,379
Capital outlay 1,000 809 191 288
Total City administrator 152,250 171,755 (19,505) t96,667
Legal:
Current:
Personal services 20,000 33,436 (13,436) -
General management and building:
Current:
Personal services 3,190 9,621 (6,431) 37,841
Materials and supplies 21,945 23,158 (1,213) 6,406
Contractual services 49,075 61,006 (11,931) 94,771
Total current 74,210 93,785 (19,575) 139,018
Capital outlay 1,100 1,098 2 -
Total general management and building 75,310 94,883 (19,573) 139,018
Elections:
Current:
Personal services 1,900 3,258 (1,358) -
Materials and supplies 500 408 92 -
Contractual services 720 520 200 720
Total elections 3,120 4,186 (1,066) 720
Finance:
Current:
Personal services 81,250 82,777 (1,527) -
Materials and supplies 1,050 1,095 (45) -
Contractual services 2,450 1,798 652 -
Total current 84,750 85,670 (920) 0
Capital outlay 500 327 173 -
Total finance 85,250 85,997 (747) 0
43
CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL FUND Statement 7
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 3 of 6
IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1998
With Comparative Actual Amounts for the Year Ended December 31, 1997
1998
Favorable
(Unfavorable) 1997
Budget Actual Variance Actual
Expenditures: (continued)
General government: (continued)
Computer system:
Current:
Materials and supplies $150 $53 $97 $ -
Contractual services 2,300 3,206 (906) -
Total computer system 2,450 3,259 (809) 0
Audit:
Current:
Personal services 11,000 14,379 (3,379)
Materials and supplies 105 70 35 -
Total audit 11,105 14,449 (3,344) 0
Insurance:
Current:
Contractual services 153,180 154,006 (826)
Assessing:
Current:
Personal services 16,000 14,377 1,623 15,042
Planning and zoning:
Current:
Personal services 83,000 88,822 (5,822) 35,230
Materials and supplies - 16 (16) 29,337
Total planning and zoning 83,000 88,838 (5,838) 64,567
Engineering:
Current:
Personal services 52,000 53,986 (1,986) 15,245
General contingency:
Current:
Contractual services 10,000 4,937 5,063 -
Total general government 715,645 776,678 (61,033) 521,592
44
CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL FUND Statement 7
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 4 of 6
IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1998
With Comparative Actual Amounts for the Year Ended December 31, 1997
1998
Favorable
(Unfavorable) 1997
Budget Actual Variance Actual
Expenditures: (continued)
Public safety:
Police department:
Current:
Personal services $631,025 $625,167 $5,858 $634,099
Materials and supplies 24,650 22,277 2,373 30,826
Contractual services 44,075 40,255 3,820 22,995
Total current 699,750 687,699 12,051 687,920
Capital outlay 35,425 29,442 5,983 25,784
Total police department 735,175 717,141 18,034 713,704
Building inspections:
Current:
Personal services 79,285 74,063 5,222 95,904
Contractual services 2,735 3,132 (397) 4,090
Materials and supplies 1,550 1,138 412 1,648
Total current 83,570 78,333 5,237 101,642
Capital outlay 500 - 500 22
Total building inspections 84,070 78,333 5,737 101,664
Fire protection:
Current:
Contractual services 70,780 67,680 3,100 54,183
Animal control:
Current:
Materials and supplies 100 155 (55) 53
Contractual services 1,000 401 599 1,489
Total animal control 1,100 556 544 1,542
Total public safety 891,125 863,710 27,415 871,093
45
CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL FUND Statement 7
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 5 of 6
IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1998
With Comparative Actual Amounts for the Year Ended December 31, 1997
1998
Favorable
(Unfavorable) 1997
Budget Actual Variance Actual
Expenditures: (continued)
Public works:
Street maintenance:
Current:
Materials and supplies $1,300 $2,053 ($753) $2,228
Contractual services 19,375 19,603 (228) 8,653
Total current 20,675 21,656 (981) 10,881
Capital outlay - - - 7,598
Total street maintenance 20,675 21,656 (981) 18,479
Snow removal:
Current:
Contractual services 50,000 49,211 789 45,131
Street lighting:
Current:
Contractual services 44,900 46,144 (1,244) 41,280 _
Arborist:
Current:
Personal services 6,460 7,838 (1,378) 2,100
Contractual services 150 7 143 -
Materials and supplies 50 66 (16) 20
Total arborist 6,660 7,911 (1,251) 2,120
Tree removal and planting:
Current:
Contractual services 15,000 15,026 (26) 14,460
Total public works 137,235 139,948 (2,713) 121,470
Sanitation:
Refuse collection and disposal:
Current:
Contractual services - - 298,842
Total sanitation 0 0 0 298,842
46
CITY OF OAK PARK FIGHTS, MINNESOTA
GENERAL FUND Statement 7
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 6 of 6
IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1998
With C omp a r at i ve A ctual Amounts for the Ye ar Ended December 31, 1997
1998
Favorable
(Unfavorable) 1997
Budget Actual Variance Actual
Expenditures: (continued)
Recreation:
Parks, playgrounds and rinks:
Current:
Personal services $97,580 $91,825 $5,755 $180,925
Materials and supplies 5,475 4,007 1,468 5,869
Contractual services 28,150 24,423 3,727 24,450
Total current 131,205 120,255 10,950 211,244
Capital outlay - 223 (223) 4,924
Total recreation 131,205 120,478 10,727 216,168
Community development:
Current:
Personal services 33,625 21,903 11,722 -
Contractual services 700 2,734 (2,034) -
Materials and supplies 1,500 1,213 287 -
Total current _ 35,825 25,850 9,975 -
Capital outlay - 106 (106) -
Total community development 35,825 25,956 9,869 0
Total expenditures 1,911,035 1,926,770 (15,735) 2,029,165
Revenue over expenditures 187,452 215,347 27,895 115,887
Other financing sources (uses):
Operating transfers from Capital Project Fund 10,591 10,591 - -
Operating transfers to Enterprise Fund (190,400) (190,400) - (1,112)
Operating transfers to Debt Service Fund - - - (61,000)
Operating transfers to Capital Project Fund (90,923) (90,923) - (120,021)
Total other financing sources (uses) (270,732) (270,732) 0 (182,133)
Net increase (decrease) in fund balance ($83,280) (55,385) $27,895 (66,246)
Fund balance - January 1 1,246,347 1,312,593
Residual equity transfer (4,299) -
Fund balance - December 31 $1,186,663 $1,246,347
47
CITY OF OAK PARK HEIGHTS, MINNESOTA
SPECIAL REVENUE FUNDS Statement S
COMBINING BALANCE SHEET
December 31, 1998
With Comparative Amounts For December 31, 1997
Forfeiture
and Economic Totals
Seizure Development 1998 1997
Assets
Cash and investments $3,242 $126,950 $130,192 $21,745
Total assets $3,242 $ 126,950 $130,192 $21,745
Liabilities and Fund Balance
Liabilities:
Interfund loan payable $ - $260,000 $260,000 $ -
Due to other governmental units - _ - $199
Deferred revenue - - - 7,220
Total liabilities 0 260,000 260,000 7,419
Fund balance:
Unreserved:
Designated for special revenue programs 3,242 - 3,242 14,326
Undesignated - (133,050) (133,050) -
Total fund balance 3,242 (133,050) (129,808) 14,326
Total liabilities and fund balance $3,242 $126,950 $130,192 $21,745
48
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, 1998
With Comparative Amounts For The Year Ended December 31, 1997
Forfeiture Law
and Economic Enforcement Totals _
Seizure Development Grant 1998 1997
Revenue:
Intergovernmental - federal block grant $ - $ - $7,220 $7,220 $2,780
Interest on investments 393 3,540 131 4,064 616
Refunds and reimbursements - 2,531 - 2,531 -
Confiscated property 1,850 - - 1,850 8,500
Total revenue 2,243 6,071 7,351 1.5,665 11,896
Expenditures:
Public safety:
Current:
Materials and supplies 1,012 - - 1,012 1,030
Contractual services 13 - - 13 698
Capital outlay 11,346 - 8,307 19,653 3,288
Community development:
Current:
Materials and supplies - 7 - 7 -
Contractual services - 7,614 - 7,614 -
Interfund loan interest - 10,000 - 10,000 -
Capital outlay - 121,500 - 121,500 -
Total expenditures 12,371 139,121 8,307 159,799 5,016
Revenue over (under) expenditures (10,128) (133,050) (956) (144,134) 6,880
Other financing sources:
Transfer from General Fund - - - - 1,112
Net increase (decrease) in hand balance (10,128) (133,050) (956) (144,134) 7,992
Fund balance - January 1 13,370 - 956 14,326 6,334
Fund balance - December 31 $3,242 ($133,050) $0 ($129,808) $14,326
49
CITY OF OAK PARK HEIGHTS, MINNESOTA
DEBT SERVICE FUNDS Statement 10
COMBINING BALANCE SHEET
December 31, 1998
With Comparative Totals For December 31, 1997
G.O.
Revenue
Bonds of 1991/
Crossover G.O. G.O
G.O. Refunding Refunding Improvement Improvement
Bonds of 1992 Bonds Bonds Bonds Totals
(Storm Sewer) of 1993 of 1995 of 1998 1998 1997
Assets
Cash and investments $31,850 $267,057 $225,919 $16,728 $541,554 $518,953
Taxes receivable:
Delinquent 267 - 519 - 786 142
Due from County 673 - 1,570 - 2,243 (721)
Special assessments:
Delinquent - 2,270 1,206 _ 3,476 3,335
Deferred - - 277,800 _ 277,800 338,628
Due from County - - 644 - 644 851
Total assets $32,790 $269,327 $507,658 $16,728 $826,503 $861,188
Liabilities and Fund Balance
Liabilities:
Deferred revenue $267 $2,270 $279,525 $ - $282,062 $342,104
Total liabilities 267 2,270 279,525 0 282,062 342,104
Fund balance:
Reserved for debt service 32,523 267,057 228,133 16,728 544,441 519,084
Total liabilities and fund balance $32,790 $269,327 $507,658 $16,728 $826,503 $861,188
50
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, 1998
With Comparative Totals For The Year Ended December 31, 1997
G.O.
Revenue
Bonds of 1991!
Crossover G.O G.O.
G.O. Refunding Refunding Improvement Improvement
Bonds of 1992 Bonds Bonds Bonds Totals
(Storm Sewer) of 1993 of 1995 of 1998 1998 1997
Revenue:
General property taxes:
Current and delinquent $ - $ - $59,026 $ - $59,026 $ -
Storm sewer ad valorem taxes:
Current and delinquent 25,349 - - - 25,349 23,648
Special assessments:
Current and delinquent - - 63,398 - 63,398 63,125
Prepayments - - 14,812 - 14,812 31,397
Penalties and interest - - 311 - 311 219
Intergovernmental:
State:
HACA - - - - 1,264
Local performance aid _. _ _ - 72
Interest on investments 1,845 13,938 13,855 221 29,859 29,541
Total revenue 27,194 13,938 151,402 221 192,755 149,266
Expenditures:
Debt service:
Principal 20,000 85,000 110,000 - 215,000 210,000
Interest 3,720 46,090 44,095 - 93,905 102,490
Total expenditures 23,720 131,090 154,095 0 308,905 312,490
Revenue over(under)expenditures 3,474 (117,152) (2,693) 221 (116,150) (163,224)
Other financing sources:
Bond proceeds - - - 16,507 16,507 -
Transfer from General Fund - - _ _ _ 61,000
Transfer from Capital Project Fund - 125,000 - - 125,000 125,000
Total other financing sources 0 125,000 0 16,507 141,507 186,000
Net increase (decrease) in fund balance 3,474 7,848 (2,693) 16,728 25,357 22,776
Fund balance - January 1 29,049 259,209 230,826 - 519,084 496,308
Fund balance - December 31 $32,523 $267,057 $228,133 $16,728 $544,441 $519,084
51
CITY OF OAK PARK HEIGHTS, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
December 31, 1998
With Comparative Totals For December 31, 1997
Budgeted
Projects
and 57th Street Osgood
Capital Equipment Oakgreen Highway 36
Revolving Fund Revolving Extension Intersection
Assets
Cash and investments $114,273 $83,397 $23,411 ($4,544)
Interfund loan receivable 260,000 - -
Due from developers _ _ -
Special assessments receivable:
Delinquent 1,578 - -
Deferred 572,713 - -
Special deferred 14,800 - -
Due from County 144 - -
Total assets $963,508 $83,397 $23,411 ($4,544)
Liabilities and Fund Balance
Liabilities:
Cash overdraft $ _ $ _ $ _ $
Interfund loan payable - _ _
Escrow deposits payable - - _ _
Accounts payable 5,761 - 1,674 903
Contracts payable 14,373 _ _
Due to other governments - _ _
Deferred revenue 589,091 - -
Total liabilities 609,225 0 1,674 903
Fund balance:
Reserved for interfund loan receivable 260,000 - - _
Unreserved:
Designated for capital improvement 71,187 83,397 21,737
Designated for committed contracts 23,096 - _ _
Undesignated - - - (5,447)
Total fund balance 354,283 83,397 21,737 (5,447)
Total liabilities and fund balance $963,508 $83,397 $23,411 ($4,544)
52
Statement 12
Page 1 of 2
St. Croix
Kern Superamerica Park Mall Street East Oaks
Center Valvoline Oil Development (TIF) Reconstruction Swager
$942,062 $9,514 $365,518 $102,931 $326,565 $2
_ 93
444 - - -
$942,062 $9,514 $365,962 $102,931 $326,565 $95
- 9,347 _ _. _
9,416 - - 1,058 -
148 - -
- - 444 _ -
9,564 9,347 444 1,058 0 0
932,498 167 365,518 101,873 326,565 95
932,498 167 365,518 101,873 326,565 95
$942,062 $9,514 $365,962 $102,931 $326,565 $95
53
CITY OF OAK PARK HEIGHTS, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
December 31, 1998
With Comparative Totals For December 31, 1997
AAE
Valley View Brackey - Brackey -
Estates Renewal and Oak Park Outlots
Krongard Replacement Pond A & B
Assets
Cash and investments ($216) $1,273,052 $40,438 $61,692
Interfund loan receivable - _ _ -
Due from developers 318 - - -
Special assessments receivable:
Delinquent - - - -
Deferred - _ _ -
Special deferred - - - -
Due from County - _ _ -
Total assets $102 $1,273,052 $40,438 $61,692
Liabilities and Fund Balance
Liabilities:
Cash overdraft $ - $ - $ -- $ -
Interfund loan payable - - -- -
Escrow deposits payable - - - -
Accounts payable - - 950 238
Contracts payable - - 42,578 5,727
Due to other governments - - -
Deferred revenue - - - -
Total liabilities 0 0 43,528 5,965
Fund balance:
Reserved for interfund loan receivable - - - -
Unreserved:
Designated for capital improvement 102 1,273,052 - 51,260
Designated for committed contracts - - - 4,467
Undesignated - - (3,090) -
Total fund balance 102 1,273,052 (3,090) 55,727
Total liabilities and fund balance $102 $1,273,052 $40,438 $61,692
54
Statement 12
Page 2 of 2
AAE
58th Street Autumn Sanitary Storm
Improvement Midge Sewer Water Sewer Totals
Phase III 3rd Addition Connection Connection Connection 1998 1997
$809,539 ($6,903) $301,570 $295,504 $447,197 $5,185,002 $3,624,580
- _ _ - - 260,000 75,000
411 101,845
- - - 1,578 1,632
- _ 15,107 26,225 33,223 647,712 138,140
- - - 14,800 14,800
- - - - - 144 180
$809,539 ($6,903) $316, 677 $ 321, 729 $480,420 $6,109,647 $3,956,177
$ - $ - $ - $ - $ - $ - $59,891
- - - - - - 75,000
- - - _ 9,347 -
614 36 - - - 20,650 22,723
- 9,780 - - 72,458 130,431
- - _ _ 148 -
- 15,107 26,225 33,223 664,090 154,572
614 9,816 15,107 26,225 33,223 766,693 442,617
- _ _ - 260,000 -
808,925 - 301,570 295,504 447,197 5,080,647 3,541,989
- _ - 27,563 36,285
- (16,719) - - - (25,256) (64,714)
808,925 (16,719) 301,570 295,504 447,197 5,342,954 3,513,560
$809,539 ($6,903) $316,677 $321,729 $480,420 $6,109,647 $3,956,177
55
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56
CITY OF OAK PARIS HEIGHTS, MINNESOTA
CAPITAL PROJECT FUNDS Statement 13
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND Page 1 of 3
CHANGES IN FUND BALANCE
For The Year Ended December 31, 1998
With Comparative Totals For The Year Ended December 31, 1997
Budgeted
Projects
Capital and 57th Street Osgood
Revolving Equipment Oakgreen Highway 36 Kern
Fund Revolving Extension Intersection Center
Revenue:
Tax increment taxes $ _ $ _ $ _ $ _ $ -
Special assessments:
Current and delinquent 28,195 - _ - _
Penalty and interest 83 - - - -
Prepayments 63,288 - - - -
Intergovernmental - 8,192 - - -
Interest on investments 36,203 10,611 113 - 12,514
Connection charges 45,070 - - - -
Escrow /interfund loan interest 10,000 - - - -
Refunds and reimbursements - 2,576 - - -
Donations and contributions - 2,351 - - -
Total revenue 182,839 23,730 113 0 12,514
Expenditures:
Professional services 30,038 26,089 - - -
Developer assistance - - - _
Administrative charge _ _ _ _
Capital outlay 63,270 74,910 - - -
Construction costs 411,311 41,526 198,376 5,447 75,999
Total expenditures 504,619 142,525 198,376 5,447 75,999
Revenue over (under) expenditures (321,780) (118,795) (198,263) (5,447) (63,485)
Other financing sources (uses):
Bond proceeds - - - - 995,983
Operating transfers from General Fund - 90,923 - - -
Operating transfers from Capital Project Fund 50,000 - 220,000 - -
Operating transfers from Enterprise Fund - 8,500 - - -
Operating transfers to General Fund - - - - -
Operating transfers to Debt Service Fund
Operating transfers to Capital Project Fund (393,800) (197,718) _ _ _
Total financing sources (uses) (343,800) (98,295) 220,000 0 995,983
Net increase (decrease) in fund balance (665,580) (217,090) 21,737 (5,447) 932,498
Fund balance - January 1 967,924 300,487 - - -
Residual equity transfer 51,939 _ _ _
Fund balance (deficit) - December 31 $354,283 $83,397 $21,737 ($5,447) $932,498
57
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, 1998
With Comparative Totals For The Year Ended December 31, 1997
St. Croix
Superamerica/ Park Interim Mall River Hills
Valvoline Oil Development Construction (TIF) 2nd Addition
Revenue:
Tax increment taxes $ - $ - $ - $43,834 $
Special assessments:
Current and delinquent - - - -
Penalty and interest - - - -
Prepayments - - - -
Intergovernmental - - - -
Interest on investments 167 19,808 - 7,254
Connection charges - - - -
Escrow/interfund loan interest -
Refunds and reimbursements - - -
Donations and contributions - 20,556 - -
Total revenue 167 40,364 0 51,088 0
Expenditures:
Professional services - 1,056 - 6,762 776
Developer assistance - - - 26,300
Administrative charge - - 27,009
Capital outlay - - -
Construction costs - - -
Total expenditures 0 1,056 0 60,071 776
Revenue over (under) expenditures 167 39,308 0 (8,983) (776)
Other financing sources (uses):
Bond proceeds - - - - -
Operating transfers from General Fund - - - - -
Operating transfers from Capital Project Fund - - - - -
Operating transfers from Enterprise Fund - - - - -
Operating transfers to General Fund - - - (10,591) -
Operating transfers to Debt Service Fund - - -
Operating transfers to Capital Project Fund - - - -
Total financing sources (uses) 0 0 0 (10,591) 0
Net increase (decrease) in fund balance 167 39,308 0 (19,574) (776)
Fund balance - January I - 326,210 (3,458) 121,447 (65)
Residual equity transfer - - 3,458 - 841
Fund balance (deficit) - December 31 $167 $365,518 $0 $101,873 $0
58
Statement 13
Page 2 of 3
AAE
Valley View West Brackey - Brackey -
Street East Oaks Estates Frontage Road Renewal and Oak Park Outlots
Reconstruction Swager Krongard Connection Replacement Pond A & B
11,318 - 2 - 64,624 5,705 299
10,000 _ 698 - - 54,770 120,764
21,318 0 700 0 64,624 60,475 121,063
2,580 - - - - - -
4,537 - 675 - - 388,060 65,336
7,117 0 675 0 0 388,060 65,336
14,201 0 25 0 64,624 (327,585) 55,727
197,718 - - - 173,800 -
- _ _ - 107,253 - -
197,718 0 0 0 107,253 173,800 0
211,919 0 25 0 171,877 (153,785) 55,727
114,646 95 77 (947) 1,101,175 150,695 -
- - - 947 - - -
$326,565 $95 $102 $0 $1,273,052 ($3,090) $55,727
59
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, 1998
With Comparative Totals For The Year Ended December 31, 1997
AAE
Brackey
Addition
58th Street Utility and 58th Street
Improvement Autumn Street Improvement Haase
Phase 11 Ridge Improvement Phase III Addition
Revenue:
Tax increment taxes $ - $ - $ - $ - $
Special assessments:
Current and delinquent - - - -
Penalty and interest - - - -
Prepayments - - - -
Intergovernmental - - - -
Interest on investments 3,021 (494) (5,439) 11,994 (22)
Connection charges - - -
Escrow/interfund loan interest - -
Refunds and reimbursements - - 203
Donations and contributions - - -
Total revenue 3,021 (494) (5,236) 11,994 (22)
Expenditures:
Professional services 3,315 - 1,253 -
Developer assistance - - - - -
Administrative charge - - - - -
Capital outlay - - - - -
Construction costs - - - 98,011 -
Total expenditures 3,315 0 1,253 98,011 0
Revenue over (under) expenditures (294) (494) (6,489) (86,017) (22)
Other financing sources (uses):
Bond proceeds - - - 945,808
Operating transfers from General Fund - - - - -
Operating transfers from Capital Project Fund - - - - -
Operating transfers from Enterprise Fund - - - - -
Operating transfers to General Fund - - - - -
Operating transfers to Debt Service Fund - - - - -
Operating transfers to Capital Project Fund - - - - -
Total financing sources (uses) 0 0 0 945,808 0
Net increase (decrease) in fund balance (294) (494) (6,489) 859,791 (22)
Fund balance - January 1 53,180 494 6,489 (50,866) 22
Residual equity transfer (52,886) - - -
Fund balance (deficit) - December 31 $0 $0 $0 $808,925 $0
60
Statement 13
Page 3 of 3
AAE
Autumn Autumn Sanitary Storm
Ridge Ridge Sewer Water Sewer Totals
2nd Addition 3rd Addition Connection Connection Connection 1998 1997
$ _ $ _ $ _ $ - $ - $43,834 $130,343
917 1,594 2,020 32,726 93,330
- - 83 75
63,288 157,495
- _ - - 8,192 -
10,142 8,562 10,692 207,074 205,222
152,514 264,206 334,341 796,131 288,283
- - - 10,000 231
191 734 - - - 189,936 177,960
_ - - - 22,907 38,120
191 734 163,573 274,362 347,053 1,374,171 1,091,059
191 - - - 1,050 73,110 52,145
- - - - 26,300 78,206
- 27,009 -
- - - - 138,180 37,613
8,075 - - - 1,297,353 495,970
191 8,075 0 0 IX 1,050 1,561,952 663,934
0 (7,341) 163,573 274,362 346,003 (187,781) 427,125
_ _ _ - 1,941,791 -
- _ - - 90,923 120,021
_ - 641,518 425,550
- - - - 115,753 101,203
- _ (10,591) -
- (20,000) (105,000) - (125,000) (125,000)
- - - - (50,000) (641,518) (425,550)
0 0 (20,000) (105,000) (50,000) 2,012,876 96,224
0 (7,341) 143,573 169,362 296,003 1,825,095 523,349
(9,378) 157,997 126,142 151,194 3,513,560 2,990,211
- - - 4,299 -
$0 ($16,719) $301,570 $295,504 $447,197 $5,342,954 $3,513,560
61
CITE' OF OAK PARK HEIGHTS, MINNESOTA
ENTERPRISE FUND Statement 14
BALANCE SHEET
December 31, 1998
With Comparative Amounts for December 31, 1997
Assets
1998 1997
Current assets:
Cash and cash equivalents $508,312 $538,004
Accounts receivable:
Customers 135,151 115,206
Certified to County 8,928 12,202
Other 441 222
Due from other governmental units 20,733 22,281
Prepaid ACES 18,757 19,574
Total current assets 692,322 707,489
Fixed assets:
Land 60,000 60,000
Buildings and structures 1,254,845 1,254,445
Machinery and equipment 141,829 134,613
Distribution and collection system 4,433,445 4,334,874
Total 5,890,119 5,783,932
Less: Allowance for depreciation (1,582,960) (1,464,263)
Net fixed assets 4,307,159 4,319,669
Total assets $4,999,481 $5,027,158
Liabilities and Fund Equity
Current liabilities:
Accounts payable $52,201 $5,972
Salaries payable 2,462 -
Due to other governmental units 16,028 2,051
Total current liabilities 70,691 8,023
Noncurrent liabilities:
Compensated absences payable 13,389 -
Total noncurrent liabilities 13,389 0
Total liabilities 84,080 8,023
Fund equity:
Contributions from property owners - net 4,073,875 4,082,158
Retained earnings:
Reserved for debt service reserve 661,765 661,765
Unreserved 179,761 275,212
Total fund equity 4,915,401 5,019,135
Total liabilities and fund equity $4,999,481 $5,027,158
6?
CITE' OF OAK PARK HEIGHTS, MINNESOTA
ENTERPRISE FUND Statement 15
STATEMENT OF REVENUE, EXPENSES AND
CHANGES IN RETAINED EARNINGS
For The Year Ended December 31, 1998
With Comparative Totals For The Year Ended December 31, 1997
Water Sewer Totals
Operating Operating Sanitation 1998 1997
Revenue:
Customer billings $203,103 $315,420 $93,014 $611,537 $489,759
Penalties 3,254 4,792 - 8,046 6,692
Plumbing permits 555 555 - 1,110 1,410
Meter charges 6,178 - - 6,178 6,683
Charges for services 1,066 9,609 - 10,675 4,154
Total operating revenue 214,156 330,376 93,014 637,546 508,698
Expenses:
Personal services 70,815 77,012 - 147,827 -
Contractual services 90,172 6,928 293,976 391,076 80,652
Refunds and reimbursements - - 550 550 888
MCES charges - 213,651 - 213,651 226,198
Materials and supplies 10,120 1,543 - 11,663 16,659
Administrative and personnel charge 17,000 32,000 14,525 63,525 102,100
Depreciation:
On purchased assets 9,132 2,311 - 11,443 11,081
On contributed assets 60,381 46,872 - 107,253 101,203
Total operating expenses 257,620 380,317 309,051 946,988 538,781
Operating income (loss) ($43,464) ($49,941) ($216,037) (309,442) (30,083)
Other income:
Interest on investments 32,091 37,777
Refund of prior SAC charges - 54,150
Total other income 32,091 91,927
Net income (loss) before operating transfers (277,351) 61,844
Other financing sources (uses):
Operating transfer from General Fund 190,400 -
Operating transfer to Capital Project Funds (115,753) (101,203)
Total other financing sources (uses) 74,647 (101,203)
Net income (loss) (202,704) (39,359)
Other increases:
Credit arising from transfer of depreciation to contributions from property owners 107,253 101,203
Net increase (decrease) in retained earnings (95,451) 61,844
Retained earnings - January 1 936,977 875,133
Retained earnings - December 31 $841,526 $936,977
63
CITY OF OAK PARK HEIGHTS, MINNESOTA
ENTERPRISE FUND Statement 16
STATEMENT OF CASH FLOWS
For The Year Ended December 31, 1998
With Comparative Amounts For The Year Ended December 31, 1997
1998 1997
Cash flows from operating activities:
Operating income (loss) ($309,442) ($30,083)
Refund of prior SAC charges - 54,150
Adjustments to reconcile operating income to
net cash flows from operating activities:
Depreciation 118,696 112,284
Change in assets and liabilities:
Decrease (increase) in receivables (15,342) ( 7,715)
Decrease (increase) in prepaid expenses 817 3,664
Increase (decrease) in payables 76,057 (34,638)
Net cash flows from operating activities (129,214) 97,662
Cash flows from noncapital financing activities:
Operating transfers from other funds 190,400 -
Operating transfers to other funds (107,253) (101,203)
Net cash flows from noncapital financing activities 83,147 (101,203)
Cash flows from capital and related financing activities:
Operating transfer to other funds (8,500)
Acquisition of fixed assets (7,216) (8,294)
Net cash flows from capital and related financing activities (15,716) (8,294)
Cash flows from investing activities:
Interest received on investments 32,091 37,777
Net increase (decrease) in cash and cash equivalents (29,692) 25,942
Cash and cash equivalents -- January 1 538,004 512,062
Cash and cash equivalents - December 31 $508,312 $538,004
Significant noncash investing, capital and financing activities:
During 1997 and 1998, fixed assets were contributed to the Enterprise Fund as follows:
1998 1997
Water Operating Fund $55,053 $266,417
Sewer Operating Fund 43,917 180,016
Total $98,970 $446,433
64
CI'T'Y OF OAK PARK HEIGHTS, MINNESOTA
AGENCY FUNDS Statement 17
COMBINING BALANCE SHEET
December 31, 1998
With Comparative Totals for December 31, 1997
Developer Developer
Deposit Escrow Investment Totals
Fund Fund Fund 1998 1997
Assets
Cash and investments $ _ $33,000 $ - $33,000 $29,000
Accrued interest receivable - - 146,730 146,730 131,530
Due from developers 42,005 - - 42,005 48,044
Total assets $42,005 $33,000 $ 146,730 $221,735 $208,574
Liabilities
Cash overdraft $35,034 $ - $146,730 $181,764 $163,130
Escrow deposits payable - 33,000 - 33,000 29,000
Accounts payable 6,253 - - 6,253 15,273
Due to developers 718 - - 718 1,171
Total liabilities $42,005 $33,000 $146,730 $221,735 $208,574
65
CITY OF OAK PARK HEIGHTS, MINNESOTA
AGENCY FUNDS Statement 18
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For The Year Ended December 31, 1998
Balance Balance
January 1, December 31,
1998 Additions Deletions 1998
Developer Deposit Fund:
Assets:
Due from developers $48,044 $42,005 $48,044 $42,005
Liabilities:
Cash overdraft $31,600 $3,434 $ - $35,034
Accounts payable 15,273 6,253 15,273 6,253
Due to developers 1,171 718 1,171 718
Total liabilities $48,044 $10,405 $16,444 $42,005
Developer Escrow Fund:
Assets:
Cash and investments $29,000 $4,000 $ - $33,000
Liabilities:
Escrow deposits payable $29,000 $33,000 $29,000 $33,000
Invest ment -Fui d -
Assets:
Accrued interest receivable $131,530 $146,730 $131,530 $146,730
Liabilities:
Cash overdraft $131,530 $15,200 $ - $146,730
Total ALyency:
Assets: v
Cash and investments $29,000 $4,000 $ - $33,000
Accrued interest receivable 131,530 146,730 131,530 146,730
Due from developers 48,044 42,005 48,044 42,005
Total assets $208,574 $192,735 $179,574 $221,735
Liabilities:
Cash overdraft $163,130 $18,634 $ - $181,764
Escrow deposits payable 29,000 33,000 29,000 33,000
Accounts payable 15,273 6,253 15,273 6,253
Due to developers 1,171 718 1,171 718
Total liabilities $208,574 $58,605 $45,444 $221,735
66
CITY OF OAK PARK HEIGHTS, MINNESOTA
SCHEDULE OF GENERAL FIXED ASSETS Statement 19
For The Year Ended December 31, 1998
Balance Balance
January 1, December 31,
Description 1998 Additions Deletions 1998
Land $174,231 $308,628 $ - $482,859
Land improvements 326,601 - - 326,601
Buildings and structures 864,726 158,471 - 1,023,197
Machinery and equipment 280,715 73,044 30,228 323,532
Furniture and fixtures 191,213 121,009 17,008 295,214
Totals $1, 837,486 $661,152 $47,236 $2,451,402
67
CITY OF OAK PARK HEIGHTS, MINNESOTA
SCHEDULE OF GENERAL LONG -TERM DEBT Statement 20
December 31, 1998
With Comparative Amounts For December 31, 1997
1998 1997
Amount Available And To Be Provided For The
Retirement of Long -Term Debt
Bonds:
Amount available in Debt Service Funds $544,441 $519,084
Amount to be provided from future tax levies/
special assessment collections, and connection charges 3,235,559 1,485,916
Compensated absences:
Amount available in General Fund 76,617 95,814
Contract for deed:
Amount to be provided for retirement - 20,000
Total available and to be provided $3,856,617 $2,120,814
General Long -Term Debt Payable
Bonds payable:
General Obligation Bonds:
G.O. Refunding Bonds of 1992 $50,000 $70,000
G.O. Crossover Refunding Bonds of 1993 900,000 985,000
Special Assessment Bonds:
G.O. Improvement Bonds of 1995 840,000 950,000
G.O. Improvement Bonds of 1998 1,990,000 -
Total bonds payable 3,780,000 2,005,000
Compensated absences payable 76,617 95,814
Contract for deed payable - 20,000
Total general long -term debt payable $3,856,617 $2,120,814
68
SUPPLEMENTARY
FINANCIAL
INFORMATION
69
CITY OF OAK PARIS HEIGHTS, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS Exhibit 1
December 31, 1998
Final Net Bonds Principal Interest
Payment Interest Authorized Retired Outstanding Due Due
Date Due Rate And Issued To Date At 12/31/98 In 1999 In 1999
Bonded indebtedness:
General debt:
G.O. Refunding Bonds of 1992 9/1/92 12/1/00 5.48% $150,000 $100,000 $50,000 $25,000 $2,700
G.O. Crossover Refunding
Bonds of 1993 4/1/93 12/1/06 4.71% 1,140,000 240,000 900,000 90,000 42,690
Special assessments bonds:
G.O. Improvement bonds of 1995 7/1/95 12/1/05 4.69% 1,130,000 290,000 840,000 120,000 39,420
G.O. Improvement bonds of 1998 10/1/98 12/1/13 4.19% 1,990,000 - 1,990,000 140,000 93,686
Total indebtedness $4,410,000 $630,000 $3,780,000 $375,000 $178,496
70
CITY OF OAK PARK HEIGHTS, MINNESOTA
REVENUE BONDS AND GENERAL DEBT BONDS Exhibit 2
SCHEDULE OF DEBT SERVICE PAYMENTS TO MATURITY
December 31, 1998
General Debt Bonds
Special General
Taxing District Obligation General General
$150,000 Crossover Obligation Obligation
G.O. Refunding Refunding Improvement Improvement
Bonds of 1992 Bonds of 1993 Bonds of 1995 Bonds of 1998 Total
Bonds payable $50,000 $900,000 $840,000 $1,990,000 $3,780,000
Future interest payable 4,075 206,065 161,280 657,361 1,028,781
Totals $54,075 $1,106, 065 $1,001,280 $2,647,361 $4,808,781
Payments to maturity:
1999 $27,700 $132,690 $159,420 $233,686 $553,496
2000 26,375 133,910 154,140 225,263 539,688
2001 - 134,825 148,740 219,787 503,352
2002 - 150,325 143,280 214,163 507,768
2003 - 149,805 137,700 208,462 495,967
2004 - 158,805 132,000 177,688 468,493
2005 - 166,805 126,000 172,812 465,617
2006 - 78,900 - 167,813 246,713
2007 - - - 162,687 162,687
2008 - - - 157,500 157,500
2009 - - - 152,250 152,250
2010 - - - 146,938 146,938
2011 - - - 141,562 141,562
2012 - - - 136,125 136,125
2013 - - - 130,625 130,625
Totals $54,075 $1,106,065 $1,001,280 $2,647,361 $4,808,781
71
CITY OF OAK PARK HEIGHTS, MINNESOTA
INSURANCE IN FORCE Exhibit 3
December 31, 1998
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
72
CITE' OF OAK PARIS HEIGHTS, MINNESOTA
FUTURE SCHEDULED TAX LEVIES Exhibit 4
December 31, 1998
Special
Taxing District
Year Of G.O. Refunding G.O. Improvement
Collection Bonds of 1992 Bonds of 1995 Total
1999 $25,000 $59,400 $84,400
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 $50,000 $419,400 $469,400
73
CITE' OF OAK PARK HEIGHTS, MINNESOTA
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Exhibit 5
1998/1999 1997/1998
Taxable valuations:
Real estate $6,205,368 $5,987,202
Personal property 114,675 120,878
Fiscal disparity:
Contribution (547,377) (663,765)
Distribution 299,919 300,520
Captured tax increment value (30,380) (47,749)
Total $6,042,205 $5,697,086
Tax levy:
City -wide:
General revenue $1,325,000 $1,440,637
Debt service 59,400 58,410
Total City -wide 1,384,400 1,499,047
Storm Sewer District:
G.O. Refunding Bonds of 1992 25,000 25,000
Total tax levy $1,409,400 $1,524,047
Tax capacity rate:
City -wide:
General revenue 22.069% 25.336%
Debt service 0.968% 1.027%
Total City -wide 23.037% 26.363%
Storm Sewer District:
Storm Sewer Bonds of 1982 0.833% 0.778%
Total 23.870% 27.141%
Note: The tax levies shown above represent net tax levies after reduction for state aids.
74
CITY OF OAK PARK HEIGHTS, MINNESOTA
SCHEDULE OF CONSTRUCTION COSTS Exhibit 6
December 31, 1998
Legal Expended
and Current Prior
Contractor Engineer Fiscal Other Total Year Years
Street Reconstruction $998,838 $231,279 $4,866 $68,519 $1,303,502 $4,537 $1,298,965
Valley View Estates 257,813 56,127 1,910 6,923 322,773 675 322,098
Brackey - Oak Park Pond 496,512 93,146 4,633 28,047 622,338 388,060 234,278
Brackey Outlot - A & B 108,481 23,472 2,861 1,552 136,366 65,336 71,030
57th St /Oakgreen Extension - 9,388 2,780 186,208 198,376 198,376 -
Osgood/Highway 36 Intersection - 5,447 - - 5,447 5,447
Kern Center - 57,203 2,798 15,998 75,999 75,999 -
AAE - 58th Street - Phase III - 51,039 3,959 94,848 149,846 98,011 51,835
AAE - Autumn Ridge - 3rd Addition 171,955 29,874 472 6,243 208,544 8,075 200,469
Total - All Funds $2,033,599 $556,975 $24,279 $408,338 $3,023,191 $844,516 $2,178,675
75
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76
STATISTICAL
SECTION
77
CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL AND SPECIAL REVENUE FUNDS Table 1
EXPENDITURES BY FUNCTION
Years 1989 Through 1998
(UNAUDITED)
General Public Public Community Capital
Year Total Government Safety Works Sanitation Recreation Development Outlay
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
1998 2,086,569 774,444 835,293 139,948 - 120,255 43,471 173,158
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CITY OF GAIL PARK HEIGHTS, MINNESOTA
GENERAL AND SPECIAL REVENUE FUNDS Table 2
REVENUE BY SOURCE
Years 1989 Through 1998
(UNAUDITED)
Licenses Charges Fines Interest
Inter- and for and on
Year Total Taxes governmental Permits Services Forfeits Investments Miscellaneous
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
1998 2,157,782 1,479,490 200,368 125,678 186,799 60,183 49,912 55,352
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CITY OF OAK PARK HEIGHTS, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS Table 3
Years 1989 Through 1998
(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
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 w 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%
1998 1,598,540 1,615,619 101.07% 5,726 1,621,345 101.43% 16,863 1.05%
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.
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CITY OF OAK PARK HEIGHTS, MINNESOTA
SPECIAL ASSESSMENT COLLECTIONS Table 4
Years 1989 Through 1998
(UNAUDITED)
Current Total Outstanding
Collections Collections Delinquent
As a Percent As a Percent Assessments
Current Current Of Current Delinquent Of Current (including
Year Assessments Assessments Assessments Assessments Assessments Certified
Pa able Due Collected Due Collected Due Bills)
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
1998 109,134 106,924 97.97% 2,503 100.27% 6,083
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.
81
CITY OF OAK PARK HEIGHTS, MINNESOTA
PRINCIPAL TAXPAYERS (Ten Largest Taxpayers) Table 5
Taxes Payable in 1998
(UNAUDITED)
Percent of Percent of
Total Net Total Tax
Market Market Tax Capacity Property
Taxpayer Value Value Capacity Value Classification
Northern States Power $70,806,000 31.7% $2,832,240 42.1% Public Utilities
Wal -Mart Stores Inc 3,209,600 1.4% 126,434 1.9% Commercial
Northern States Power 2,947,700 1.3% 117,908 1.8% Electric Utilities
Watson Centers Inc 2,857,200 1.3% 112,338 1.7% Commercial
Watson Centers Inc 2,508,900 1.1% 100,356 1.5% Commercial
Oak Ridge Place of Oak Park 2,565,100 1.1% 74,388 1.1% Res. over 4 units
Northern States Power 1,587,100 0.7% 63,484 0.9% Public Utilities
Oak Park Associates 1,821,600 0.8% 52,826 0.8% Res. over 4 units
Watson Centers Inc 881,000 0.4% 35,240 0.5% Commercial
158 Club 901,600 0.4% 34,114 0.5% Commercial
Totals $90,085,800 40.4% $3,549,328 52.7%
Total City $238,176,600 $6,108,080
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.
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