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HomeMy WebLinkAboutAnnual Financial Report CITY OF ®AID PARIS HEIGHTS, MINNESOTA ANNUAL FINANCIAL REPORT DECEMBER 31, 1999 This page intentionally left blank. CITE' OF OAK PARK HEIGHTS, MINNESOTA TABLE OF CONTENTS Page Number Organization I Independent Auditor's Report 3 General Purpose 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: Statement 6 38 Balance Sheet Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Statement 7 39 Special Revenue Funds: Combining Balance Sheet Statement 8 44 Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 9 45 Debt Service Funds: Combining Balance Sheet Statement 10 46 Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 11 47 Capital Project Funds: Combining Balance Sheet Statement 12 48 Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 13 52 Enterprise Fund: Statement 14 56 Balance Sheet Statement of Revenue, Expenses and Changes in Retained Earnings Statement 15 57 Statement of Cash Flows Statement 16 58 CITE' OF ®AID PARK HEIGHTS, MANESOTA TABLE OF CONTENTS Page Number Agency Funds: Combining Balance Sheet Statement 17 59 Combining Statement of Changes in Assets and Liabilities Statement 18 60 General Fixed Asset Account Group: Schedule of General Fixed Assets Statement 19 61 General Long -Term Debt Account Group: Schedule of General Long -Term Debt Statement 20 62 Supplementary Financial Information Combined Schedule of Indebtedness Exhibit 1 64 Debt Service Payments to Maturity: Revenue Bonds and General Debt Bonds Exhibit 2 65 Insurance in Force Exhibit 3 66 Future Scheduled Tax Levies Exhibit 4 67 Taxable Valuations, Tax Levies and Tax Rates Exhibit 5 68 Schedule of Construction Costs Exhibit 6 69 Statistical Section General and Special Revenue Funds - Expenditures by Function - Years 1990 through 1999 Table 1 72 General and Special Revenue Funds - Revenue by Source - Years 1990 through 1999 Table 2 73 Property Tax Levies and Collections - Years 1990 through 1999 Table 3 74 Special Assessment Collections - Years 1990 through 1999 Table 4 75 Principal Taxpayers Table 5 76 CITE' OF OAK PARK HEIGHTS, MINNESOTA ORGANIZATION December 31, 1999 Term Expires Mayor: David Schaaf December 31, 2000 Council Members: Lynae Eynre December 31, 2002 Marls Swenson December 31, 2002 David Eeaudet December 31, 2000 Jerry Turnquist December 31, 2000 Administrator: Thomas Melena Appointed Deputy Cleric /finance Director: Judy Holst Appointed 1 This page intentionally left blank. s + f V i .f G f. T 5p n� 7 7,74 t Y: i'` ] «° ���`t ,rn '�.:;^', sit §��' ' ,� �"� L r >�3` "��e °';�� 8 � ,5�7 g .�. <, ��: �,.�f�•� .,kr ,..,�.�e � =7Sgt% c 2g s spy .�. ^,i xs r.:� �r'• fry 1 ; , f - ; d z y , u' fiS a M ,fir,," Y rr;�� € ,' � #' s •?t'�f rt.si�._ �.� _p. ..`«� �.� -.Si- ��,�'s�fs& �i..s P.c -. .,. �. ^{ 9u � §,s?�a a` sb�� � c, ��tu, �k -1�� This page intentionally left blank. 4 Our audit was performed for the purpose of fornirming 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 stated in all material respects, in relation to the general purpose financial statements taken as a whole. March 13, 2000 HL$ TAUTGES REDPATH, LTD. Certified Public Accountants 5 This page intentionally left blank. 6 GENERAL PURPOSE FINANCIAL STATEMENTS 7 CITY OF OAK PARK HE' IGHTS, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1999 With Comparative Totals For December 31, 1998 Governmental Fund Types Special Debt Assets General Revenue Service Cash and investments $1,172,829 $86,567 $555,486 Interfund loan receivable - 10,313 - Accrued interest receivable - - - Accounts receivable 9,030 - 35,454 Due from other governmental units 37,531 - Due from developers - _ Prepaid items - Inventory - - - Taxes receivable: Delinquent 22,952 _ 1,028 Due from County 17,061 - 898 Special assessments receivable - 1,444,830 Fixed assets (net of accumulated depreciation) - - - Amount available in general fund - Amount available in debt service fund - Amount to be provided for retirement of general long -term debt - - Total assets $1,259,403 $96,880 $2,037,696 Liabilities, Equity and Other Credits Liabilities: Cash overdraft $ - $ $ Interfund loan payable -• 260,000 Escrow deposits payable - •- Accounts payable 34,602 - Salaries payable 1,918 - Contracts payable -• Due to other governmental units 7,830 - Due to developers - - Compensated absences payable Bonds payable - - Deferred revenue 23,972 - 1,444,281 Total liabilities 68,322 260,000 1,444,281 Equity and other credits: Invested in general fixed assets - - Contributions - net - - - Retained earnings: Reserved - - - Unreserved - - - Fund balance: Reserved - 10,313 593,415 Unreserved: Designated 1,191,081 4,124 - Undesignated - (177,557) - Total equity and other credits 1,191,081 (163,120) 593,415 Total liabilities, equity and other credits $1,259,403 $96,880 $2,037,696 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 1999 1998 $3,592,992 $436,920 $31,000 $ - $ - $5,875,794 $7,561,692 260,000 - - - _ 270,313 260,000 - - 111,294 - 111,294 146,730 5 118,539 2,475 _ _ 165,503 163,287 - 437 - - _ 37,968 44,059 64,290 - 45,063 _ - 109,353 42,416 - 21,952 - _ 21,952 18,757 _ - 2,624 23,980 16,863 _ _ - 17,959 41,390 392,216 - - _ _ 1,837,046 946,154 - 4,645,952 _ 2,690,219 - 7,336,171 6,758,561 _ _ - 102,958 102,958 76,617 593,415 593,415 544,441 2,811,585 2,811,585 3,235,559 $4,309,503 $5,223,800 $189,832 $2,690,219 $3,507,958 $19,315,291 $19,859,150 $32,513 $ - $150,767 $ $ - $183,280 $181,764 10,313 - _ _ - 270,313 260,000 9,347 - 31,000 - - 40,347 42,347 33,631 26,274 6,412 - 100,919 126,516 - 1,308 - - 3,226 8,773 176,222 - - - - 176,222 72,458 - 10,815 - - - 18,645 22,266 - 1,653 - - 1,653 718 22,987 - - 102,958 125,945 90,006 _ _ m 3,405,000 3,405,000 3,780,000 370,606 - - - - 1,838,859 963,249 632,632 61,384 189,832 0 3,507,958 6,164,409 5,548,097 - - 2,690,219 - 2,690,219 2,451,402 - 4,403,495 - - - 4,403,495 4,073,875 - 661,765 _ - - 661,765 661,765 - 97,156 - - - 97,156 179,761 260,000 - - - 863,728 807,065 3,489,532 _ _ - 4,684,737 6,272,364 (72,661) _ - - - (250,218) (135,179) 3,676,871 5,162,416 0 2,690,219 0 13,150,882 14,311,053 $4,309,503 $5,223,800 $189,832 $2,690,219 $3,507,958 $19,315,291 $19,859,150 The accompanying notes are an integral part of these financial statements. 9 CITE' 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, 1999 With Comparative Totals For The Year Ended December 31, 1998 Totals Special Debt Capital (Memorandum Only) General Revenue Service Project 1999 1998 Revenue: General property taxes $1,333,194 $ - $83,760 $ - $1,416,954 $1,563,865 Tax increment taxes - - - 13,945 13,945 43,834 Special assessments - - 321,291 353,927 675,218 174,618 Intergovernmental 192,194 - - - 192,194 208,560 Licenses and permits 227,693 - - 227,693 125,678 Charges for services 230,147 _ - - 230,147 186,799 Fines and forfeits 58,886 - - - 58,886 60,183 Earnings on investments 36,970 5,741 28,387 231,578 302,676 286,845 Connection charges - - 35,454 31,832 67,286 796,131 Escrow /interfund loan interest - 313 - 20,000 20,313 10,000 Refunds and reimbursements 65,295 - - 1,132,699 1,197,994 236,525 Donations and contributions 365 - - 4,275 4,640 23,407 Other 3,087 4,030 - 15,408 22,525 8,263 Total revenue 2,147,831 10,084 468,892 1,803,664 4,430,471 3,724,708 Expenditures: Current: General government 772,729 - - - 772,729 774,444 Public safety 886,666 977 - - 887,643 835,293 Public works 192,501 - - -- 192,501 139,948 Recreation 73,241 - - - 73,241 120,255 Community development 84,221 40,110 - - 124,331 43,471 Capital outlay 40,055 2,309 - 175,307 217,671 311,338 Debt service: Principal - - 375,000 - 375,000 215,000 Interest - - 178,496 - 178,496 93,905 Professional services - - 1,422 18,162 19,584 73,110 Contractual services - - - 862 862 - Developer assistance - - - 8,367 8,367 26,300 Administrative charge - - - 7,253 7,253 27,009 Construction costs - - - 3,278,021 3,278,021 1,297,353 Total expenditures 2,049,413 43,396 554,918 3,487,972 6,135,699 3,957,426 Revenue over (under) expenditures 98,418 _ (33,312)_ (86,026) (1,684,308) (1,705,228) (232,718) Other financing sources (uses): Bond proceeds - - - - - 1,958,298 Operating transfers from other funds - 135,000 503,225 638,225 983,785 Operating transfers to other funds (94,000) - - (485,000) (579,000) (1,058,432) Total other financing sources (uses) (94,000) 0 135,000 18,225 59,225 1,883,651 Net increase (decrease) in fund balance 4,418 (33,312) 48,974 (1,666,083) (1,646,003) 1,650,933 Fund balance - January 1 1,186,663 (129,808) 544,441 5,342,954 6,944,250 5,293,317 Fund balance - December 31 $1,191,081 ($163,120) $593,415 $3,676,871 $5,298,247 $6,944,250 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, 1999 With Comparative Actual Amounts For The Year Ended December 31, 1998 1999 Favorable (Unfavorable) 1998 Budget Actual Variance Actual Revenue: General property taxes $1,325,000 $1,333,194 $8,194 $1,479,490 Intergovernmental 184,157 192,194 8,037 193,148 Licenses and permits 215,190 227,693 12,503 125,678 Charges for services 298,955 230,147 (68,808) 186,799 Fines and forfeits 60,150 58,886 (1,264) 60,183 Earnings on investments 52,000 36,970 (15,030) 45,848 Refunds and reimbursements 40,000 65,295 25,295 44,058 Donations and contributions - 365 365 500 Other - 3,087 3,087 6,413 Total revenue 2,175,452 2,147,831 (27,621) 2,142,117 Expenditures: Current: General government 698,415 772,729 (74,314) 774,444 Public safety 909,875 886,666 23,209 834,268 Public works 179,280 192,501 (13,221) 139,948 Sanitation - - - Recreation 83,635 73,241 10,394 120,255 Community development 59,810 84,221 (24,411) 25,850 Capital outlay 44,600 40,055 4,545 32,005 Total expenditures 1,975,615 2,049,413 (73,798) 1,926,770 Revenue over (under) expenditures 199,837 98,418 (101,419) 215,347 Other financing sources (uses): Operating transfers from other funds - - - 10,591 Operating transfers to other funds (168,000) (94,000) 74,000 (281,323) Total other financing sources (uses) (168,000) (94,000) 74,000 (270,732) Net increase (decrease) in fund balance $31,837 4,418 ($27,419) (55,385) Fund balance - January 1 1,186,663 1,246,347 Residual equity transfer - (4,299) Fund balance - December 31 $1,191,081 $1,186,663 The accompanying notes are an integral part of these financial statements. 11 CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENSES AND Statement 4 CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPE For The Year Ended December 31, 1999 With Comparative Amounts For The Year Ended December 31, 1998 Enterprise Fund 1999 1998 Operating revenue: Customer billings $711,472 $611,537 Penalties 13,416 8,046 Plumbing permits 2,160 1,110 Meter sales 10,930 6,178 Charges for services 3,317 10,675 Total operating revenue 741,295 637,546 Operating expenses: Personal services 236,017 147,827 Contractual services 202,271 391,076 Refunds and reimbursements 1,100 550 MCES charges 250,780 213,651 Materials and supplies 9,207 11,663 Administrative and personnel charges 80,655 63,525 Depreciation 120,930 118,696 Total operating expenses 900,960 946,988 Net income (loss) from operations (159,665) (309,442) Other income: Earnings on investments 27,060 32,091 Net income (loss) before operating transfers (132,605) (277,351) Other financing sources (uses): Operating transfer from other funds 65,000 190,400 Operating transfer to other funds (124,225) (115,753) Total other financing sources (uses) (59,225) 74,647 Net income (loss) (191,830) (202,704) Other increases: Credit arising from transfer of depreciation to contributions from property owners 109,225 107,253 Net increase (decrease) in retained earnings (82,605) (95,451) Retained earnings - January 1 841,526 936,977 Retained earnings - December 31 $758,921 $841,526 The accompanying notes are an integral part of these financial statements. 12 CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED STATEMENT OF CASH FLOWS - Statement 5 PROPRIETARY FUND TYPE For The Year Ended December 31, 1999 With Comparative Amounts For The Year Ended December 31, 1998 Enterprise Fund 1999 1998 Cash flows from operating activities: Operating income (loss) ($159,665) ($309,442) Refund of prior SAC charges - - Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation 120,930 118,696 Change in assets and liabilities: Decrease (increase) in receivables 46,277 (15,342) Decrease (increase) in prepaid expenses (3,195) 817 Increase (decrease) in payables (22,696) 76,057 Net cash flows from operating activities (18,349) (129,214) Cash flows from noncapital financing activities: Operating transfers from other funds 65,000 190,400 Operating transfers to other funds (124,225) (107,253) Net cash flows from noncapital financing activities (59,225) 83,147 Cash flows from capital and related financing activities: Operating transfers to other funds - (8,500) Acquisition of fixed assets (20,878) (7,216) Net cash flows from capital and related financing activities (20,878) (15,716) Cash flows from investing activities: Interest received on investments 27,060 32,091 Net increase (decrease) in cash and cash equivalents (71,392) (29,692) Cash and cash equivalents - January 1 508,312 538,004 Cash and cash equivalents - December 31 $436,920 $508,312 Significant noncash investing, capital and financing activities: During 1998 and 1999, fixed assets were contributed to the Enterprise Fund as follows: 1999 1998 Water Operating Fund $187,914 $55,053 Sewer Operating Fund 250,931 43,917 Total $438,845 $98,970 The accompanying notes are an integral part of these financial statements. 13 This page intentionally left blank. 14 CI'T'Y OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 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 , PORTING 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. 15 CITY OF OAK PAID HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Special Revenue Funds - to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. Debt Service Funds - to account for the accumulation of resources for, and the payment of, general long -term debt principal, interest, and related costs. Capital Proiect Funds - to account for financial resources to be used for the acquisition or construction of major facilities other than those financed by Proprietary Funds. PROPRIETARY FUNDS EnteWiise F unds -• 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. FIDUCIA FUNDS Agenev 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. 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 Long -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. 16 CITY OF OAK PARIS HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 C. BASIS OF ACCOUNTING The accounting and reporting treatment applied to a fiord is determined by its measurement focus. All governmental funds are accounted for on a current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. All Proprietary Funds are accounted for on a flow of economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with this activity are included on their balance sheets. Their reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. The modified accrual basis of accounting is followed by the City for its Governmental Funds and Agency Funds. Under this method of accounting, revenues are recognized when they become susceptible to accrual - that is, when they become both measurable and available to finance expenditures of the fiscal period. "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. 17 CITE' OIL OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 The City has reported as deferred revenues the amount of $1,839,489, which consists of the following: Unearned grants $1,020 Property taxes receivable 23,980 Special assessments receivable 1,813,859 Total $1,838,859 Do 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 Bind 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. 18 CI'T'Y OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 4. The department heads are authorized to transfer appropriations under $500 within any department budget. Additional interdepartmental or interfund appropriations and deletions are or may be authorized by the City Council with fund (contingency) reserves or additional revenues. 5. Formal budgetary integration is employed as a management control device during the year for the General Fund. 6. Legal debt obligation indentures determine the appropriation level and debt service tax levies for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to determine and calculate user charges. These debt service and budget amounts represent general obligation bond indenture provisions and net income for operation and capital maintenance and are not reflected in the financial statements. 7. A capital improvement program is reviewed annually by the City Council for the Capital Project Funds. However, appropriations for major projects are not adopted until the actual bid award of the improvement. The appropriations are not reflected in the financial statements. 8. Expenditures may not legally exceed budgeted appropriations at the total fund level. Monitoring of budgets is maintained at the expenditure category level (i.e., personal services; material and supplies; contractual services; capital outlay) within each department. 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. 'The following is a listing of General Fund departments whose expenditures exceed budget appropriations: Over Budget Actual Budget Mayor and council $52,650 $60,296 $7,646 City administrator 177,350 194,600 17,250 General management and building 49,850 78,366 28,516 Finance 112,060 129,719 17,659 Computer system 9,200 22,622 13,422 Insurance 159,800 165,725 5,925 Planning and zoning 35,000 43,704 8,704 Fire protection 80,000 83,019 3,019 Street maintenance 43,960 58,976 15,016 Snow removal 55,000 58,259 3,259 Street lighting 45,000 45,439 439 Community development 59,810 84,700 24,890 19 CITY OF DAIS PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 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 TAX REVENUE RE COGNITION 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 1999 and 1998 totaled $89,420 and $76,858, respectively. Receipt of property taxes from this "fiscal disparities pool" does not increase or decrease total tax revenue. 20 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 H. SPECIAL, ASSESSMENT + VENUE 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. 1. 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. 21 CITE' OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 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 1998 or 1999. 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. 22 CI'T'Y OF DAIS PARIS HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 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. 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. O. 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. P. 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. 23 CITY OF OAK PARIS HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 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, 1999 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. $5,414,185 $5,323,547 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. - Totals $5,414,185 $5,323,547 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. 24 CI'T'Y OF OAK PARK HEIGHTS, MINNESO'T'A NOTES TO FINANCIAL STATEMENTS December 31, 1999 c) General obligations of the State of Minnesota or any of its municipalities. d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System. e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota securities broker- dealers; or, a bank qualified as a depositor. Balances at December 31, 1999 were: Carrying Custodial Credit Risk category Amount Securities Type _ _ 1 2 3 (at Fair Value) U.S. Government and Agency Securities $100,000 $ - $ a $100,000 Investments not subject to credit risk categorization: Investment company shares 268,867 Total investment 368,867 Deposits 5,323,547 Total deposits and investments 5,692,414 Change funds 100 Total $5,692,514 The City's investments are categorized above to give an indication of the level of custodial credit risk assumed at year end. Category 1 includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured or unregistered investments for which the securities are held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty or by its trust department or agent but not in the City's name. 25 CITE' OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 3 FIXED ASSETS • summary of changes in general fixed assets is as follows: Balance Balance 01/01/1999 Additions Deletions 12/31/1999 Land $482,859 $ $ - $482,859 Land improvements 326,601 - - 326,601 Buildings and structures 1,023,197 115,782 - 1,138,979 Machinery and equipment 323,531 124,212 28,849 418,894 Furniture and fixtures 295,214 63,886 36,214 322,886 Totals $2,451,402 $303,880 $65,063 $2,690,219 • summary of Enterprise Fund fixed assets at December 31, 1999 is as follows: Enterprise Land $60,000 Buildings and structures 1,254,845 Machinery and equipment 162,707 Distribution and collection systems 4,872,289 Total 6,349,841 Less: allowance for depreciation 0 2 703,8 89) Net fixed assets $4,645,952 26 CITY OF OAK PARIS HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 4 CI'T'Y INDEBTEDNESS The following is a schedule of changes in City indebtedness for the year ended December 31, 1999: Balance Balance 01/01/99 Additions Deletions 12/31/99 General Long -Term Debt Account Group: Bonded debt: General obligation $950,000 $ - $115,000 $835,000 Special assessment bonds 2,830,000 - 260,000 2,570,000 Compensated absences 76,617 26,341 - 102,958 Total general long-term debt 3,856,617 26,341 375,000 3,507,958 Proprietary funds: Compensated absences 13,389 9,598 - 22,987 Totals $3,870,006 $35,939 $375,000 $3,530,945 All longterm bonded indebtedness outstanding at December 31, 1998 is backed by the full faith and credit of the City, including special assessment bond issues. Delinquent assessments receivable at December 31, 1999 totaled $4,704. The annual requirement to amortize all debt outstanding at December 31, 1999 including interest payments of $850,285 is as follows: Year General Ending Obligation Decem 31, . 2000 $539,688 2001 503,352 2002 507,768 2003 495,967 2004 468,493 2005 -2013 1,740,017 Total $4,255,285 It is not practicable to determine the specific year for payment of long -term accrued compensated absences. 27 CITE' OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Long -term debt at December 31, 1999 is composed of the following: Final Authorized Issue Maturity Interest And Outstanding Date Date Rate Issued 12/31/99 General Long -Term Debt: General obligation bonds: G.O. Refunding Bonds of 1992 09/01/92 12/01/00 5.48 $150,000 $25,000 G.O. Crossover Refunding Bonds of 1993 04/01/93 12/01/06 4.71 1,140,000 810,000 Special assessment bonds: G.O. Improvement Bonds of 1995 07/01/95 12/01/05 4.69 1,130,000 720,000 G.O. Improvement Bonds of 1998 10/01/98 12/01/13 4.19 1,990,000 1,850,000 Compensated absences payable 125,945 Total general long -term debt $3,530,945 28 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 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 1998 and 1999 is computed as follows: December 31, 1999 1998 Market value (for pay 1999 or 1998) $274,454,600 $238,211,800 Debt limit percentage 2.00% 2.00 % Debt limit 5,489,092 4,764,236 Amount of debt applicable to debt limit: Total bonded debt 3,405,000 3,780,000 Less: Non applicable debt: Revenue bonds (810,000) (900,000) Special assessment bonds (2,570,000) (2,830,000) Cash and investments in corresponding Debt Service Funds (31,193) (31,850) Total amount of debt applicable to debt limit (6,193) 18, Legal debt margin $5,495,285 $4,746,086 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 (PERT) 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. 29 CITY OF OAK PARIS HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 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 set vice, age, and years of credit at termination of set 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 6.20% 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 9.30% for PEPFF members. The City's contributions to the Public Employees Retirement Fund for the years ending December 31, 1999, 1998 and 1997 were $28,355, $19,695 and $14,070, respectively. The City's contributions to the Public Employees Police and Fire Fund for the years ending December 31, 1999, 1998 and 1997 were $52,788, $54,602 and $48,046, 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 Set (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 now bills 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. 30 CITY OF OAK PARIS HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 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, 1999 and 1998 were as follows: December 31, 1999 1998 Current value credits $0 $67 Note , CONCILIATION OF CONTRIBUTED CAPITAL Changes to contributed capital during the year are as follows: Depreciation Beginning Capital on Contributed Ending Balance Contributions Assets Balance Water $2,395,595 $187,914 $61,908 $2,521,601 Sewer 1,678,280 250,931 47,317 1,881,894 Total $4,073,875 $438,845 $109,225 $4,403,495 Note 9 TAX INCREMENT DISTRICTS The City established an economic development district, "St. Croix Mall Tax Increment District," on August 7, 1989. This district was decertified during 1999. Taxes Payable in 1999 Current net tax capacity $237,095 Original net tax capacity (as adjusted) (206,715) Retained captured net tax capacity $30,380 31 CI'T'Y OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 10 SPECIAL TAXING DISTRICT The City Council of Oat 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 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, 1999: Amount Special Revenue: Economic Development $167,244 Capital Project: Central Business District 12,770 Brackey - Oak Park Pond 22,390 Kern Center 29,835 Osgood Highway 36 Intersection 7,666 Dote 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. 32 CITY OF OAK (PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 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, 1999. C. TAX INCRE MENT 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, 1999 totaled $359,400. 33 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 14 DESIGNATIONS AND RE SERVATIONS OF FUND EOIIITY At December 31, 1999 and 1998 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, 1999 and 1998 are shown on the various balance sheets as segregations of the fund equity. A summary of such designations is as follows: December 31, 1999 1998 General Fund: Reserved for inventory $ - $2,624 Designated for cash flow 733,000 702,000 Designated for contingent employee benefit 135,153 101,617 Designated for general contingency 285,526 326,000 Designated for capital improvements 12,011 6,204 Designated for employee insurance benefits 25,391 25,091 Special Revenue Funds: Reserved for interfund loan receivable 10,313 - Designated for special revenue program 4,124 3,242 Debt Service Funds: Reserved for debt service 593,415 544,441 Capital Project Funds: Reserved for interfund loan receivable 260,000 260,000 Designated for capital improvements 3,372,934 5,080,647 Designated for committed contracts 116,598 27,563 Enterprise Fund: Reserved for debt service reserve 661,765 661,765 Totals $6,210,230 $7,741,194 34 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 15 COMMITMENTS Construction commitments at December 31, 1999 were composed of the following: Expended Remaining Contract as of Contract Description Authorized 12/31/99 Commitment 57th Street Oakgreen Extention $255,339 $207,774 $47,565 Fern Center 804,178 777,125 27,053 58th Street Improvement Phase 1II 789,016 649,874 139,142 Boutwells Landing 1,232,093 923,003 309,090 Note 16 MAJOR TAXPAYER The City has one major taxpayer, Northern States Power, the total tax capacity value for this taxpayer represented approximately 55% 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 $151,578 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. 35 CITE' OF OAK PARIS HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1999 Note 13 CONDUIT DEBT 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, 1999, there were four series of Industrial Revenue Bonds outstanding. The principal amount payable at December 31, 1999 was $38 million. Note 19 INTERF'UND LOANS There were interfund loans receivable and payable at December 31, 1999 as follows: Fund Receivable Payable Economic development $10,313 $260,000 Capital revolving fund 260,000 - Central Business District - 10,313 Total $270,313 $270,313 The $260,000 loan will be repaid from yet undetermined sources by July 1, 2003. The $10,313 loan will be repaid from yet undetermined sources, and does not have a due date. 36 COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS 37 CITY OF ®AID PARK HEIGHTS, MINNESOTA GENERAL FUND Statement 6 BALANCE SHEET December 31, 1999 With Comparative Amounts for December 31, 1998 December 31, Assets 1999 1998 Cash and investments $1,172,829 $1,163,632 Accounts receivable 8,124 18,246 Accounts receivable - certified 906 521 Due from other governmental units 37,531 23,326 Inventory - 2,624 "faxes receivable: Delinquent 22,952 16,077 Due from County 17,061 39,147 Total assets $1,259,403 $1,263,573 Liabilities and Fund Balance Liabilities: Accounts payable $34,602 $47,412 Salaries payable 1,918 6,311 Due to other governmental units 7,830 6,090 Deferred revenue 23,972 17,097 Total liabilities 68,322 76,910 Fund balance: Reserved for inventory - 2,624 Unreserved: Designated for cash flow 733,000 702,000 Designated for contingent employee benefit 135,153 101,617 Designated for general contingency 285,526 326,000 Designated for capital improvements 12,011 6,204 Designated for employee insurance benefits 25,391 25,091 Undesignated - 23,127 Total fund balance 1,191,081 1,186,663 Total liabilities and fund balance $1,259,403 $1,263,573 38 CITY OF OAK PARK HEIGHTS, MINNESOTA GENERAL FUND Statement 7 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Pagel of 5 IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31, 1998 1999 Favorable (Unfavorable) 1998 Budget Actual Variance Actual Revenue: General property taxes: Current and delinquent $1,325,000 $1,315,529 ($9,471) $1,462,506 Payment in lieu of taxes - 11,778 11,778 10,723 Excess TIF _ 5,808 5,808 6,204 Othertaxes - 79 79 57 Total general property taxes 1,325,000 1,333,194 8,194 1,479,490 Intergovernmental: Federal: Safe and Sober - - - 6,153 Cops Grant 35,000 36,022 1,022 26,159 FEMA - - 8,109 Underage Compliance Checks - 780 780 - State: HACA 74,983 74,983 - 74,464 Local Performance aid 4,884 4,884 - 5,133 Police aid 50,000 53,446 3,446 48,350 Police training aid - 2,963 2,963 2,848 Disaster aid - 1,559 1,559 - Other 2,040 2,040 - 2,689 County: Recycling grant 16,500 14,691 (1,809) 14,691 Gravel tax allocation 750 826 76 223 Met Council planning grant - - - 4,329 Total intergovernmental 184,157 192,194 8,037 193,148 Licenses and permits 215,190 227,693 12,503 125,678 Charges for services: General government 2,700 14,767 12,067 14,910 Development charge 9,000 9,000 - 12,000 Refuse charge - Junker settlement 31,600 25,718 (5,882) 28,887 Inspections - City of Bayport 25,000 36,122 11,122 40,468 Administrative - Enterprise Fund 80,655 80,655 - 63,525 Administrative - TIF 50,000 7,253 (42,747) 27,009 Administrative - Construction 100,000 56,632 (43,368) - Total charges for services 298,955 230,147 (68,808) 186,799 Fines and forfeits 60,150 58,886 (1,264) 60,183 Earnings on investments 52,000 36,970 (15,030) 45,848 Refunds and reimbursements 40,000 65,295 25,295 44,058 Donations and contributions - 365 365 500 Sale of property - 3,087 3,087 6,413 Total revenue 2,175,452 2,147,831 (27,621) 2,142,117 39 CITE' OF OAK PARK HEIGHTS, MINNESOTA GENERAL FUND Statement 7 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 2 of 5 IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31, 1998 1999 Favorable (Unfavorable) 1998 Budget Actual Variance Actual Expenditures: General government: Mayor and council: Current: Personal services $32,500 $35,439 ($2,939) $30,097 Materials and supplies 1,800 1,247 553 3,249 Contractual set 18,350 22,663 (4,313) 19,223 Total current 52,650 59,349 (6,699) 52,569 Capital outlay - 947 (947) - Total mayor and council 52,650 60,296 (7,646) 52,569 City administrator: Current: Personal services 161,000 169,954 (8,954) 142,760 Materials and supplies 3,150 3,416 (266) 6,855 Contractual services 12,200 19,756 (7,556) 21,331 'Total current 176,350 193,126 (16,776) 170,946 Capital outlay 1,000 1,474 (474) 809 Total City administrator 177,350 194,600 (17,250) 171,755 Legal: Current: Personal services 32,000 23,337 8,663 33,436 General management and building: Current: Personal services 1,700 - 1,700 9,621 Materials and supplies 7,000 11,688 (4,688) 23,158 Contractual set-vices 41,150 65,013 (23,863) 61,006 Total current 49,850 76,701 (26,851) 93,785 Capital outlay - 1,665 (1,665) 1,098 Total general management and building 49,850 78,366 (28,516) 94,883 Elections: Current: Personal services - - _ 3,258 Materials and supplies - - _ 408 Contractual set 800 - 800 520 Total elections 800 0 800 4,186 Finance: Current: Personal services 107,160 125,260 (18,100) 82,777 Materials and supplies 1,550 1,811 (261) 1,095 Contractual services 2,850 2,401 449 1,798 Total current 111,560 129,472 (17,912) 85,670 Capital outlay 500 247 253 327 Total finance 112,060 129,719 (17,659) 85,997 40 CI'T'Y OF OAK PARK HEIGHTS, MINNESOTA GENERAL FUND Statement 7 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 3 of 5 IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31, 1998 1999 Favorable (Unfavorable) 1998 Budget Actual Variance Actual Expenditures: (continued) General government: (continued) Computer system: Current: Materials and supplies $200 $457 ($257) $53 Contractual services 9,000 22,165 (13,165) 3,206 Total computer system 9,200 22,622 (13,422) 3,259 Audit: Current: Personal services 11,600 7,141 4,459 14,379 Materials and supplies 105 - 105 70 Total audit 11,705 7,141 4,564 14,449 Insurance: Current: Contractual services 159,800 165,725 (5,925) 154,006 Assessing: Current: Personal services 17,000 16,735 265 14,377 Planning and zoning: Current: Personal services 35,000 43,664 (8,664) 88,822 Materials and supplies - - - 16 Contractual services - 40 (40) - Total planning and zoning 35,000 43,704 (8,704) 88,838 Engineering: Current: Personal services 30,000 29,421 579 53,986 General contingency: Current: Contractual services 12,500 5,396 7,104 4,937 Total general government 699,915 777,062 (77,147) 776,678 Public safety: Police department: Current: Personal services 661,500 655,095 6,405 625,167 Materials and supplies 29,000 25,038 3,962 22,277 Contractual services 39,725 34,430 5,295 40,255 Total cut 730,225 714,563 15,662 687,699 Capital outlay 31,500 31,053 447 29,442 Total police department 761,725 745,616 16,109 717,141 41 CITE' OF OAK PARK HEIGHTS, MINNESOTA GENERAL FUND Statement 7 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 4 of 5 IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31, 1998 1999 Favorable (Unfavorable) 1998 Budget Actual Variance Actual Expenditures: (continued) Building inspections: Current: Personal services $91,450 $78,841 $12,609 $74,063 Materials and supplies 1,850 1,822 28 1,138 Contractual services 5,250 7,451 (2,201) 3,132 Total building inspections 98,550 88,114 10,436 78,333 Fire protection: Current: Contractual services 78,000 80,740 (2,740) 67,680 Materials and supplies 2,000 2,279 (279) - Total fire protection 80,000 83,019 (3,019) 67,680 Animal control: Current: Materials and supplies 100 50 50 155 Contractual services 1,000 920 80 401 Total animal control 1,100 970 130 556 Total public safety 941,375 917,719 23,656 863,710 Public works: Street maintenance: Current: Personal services 21,800 27,298 (5,498) - Materials and supplies 2,810 3,831 (1,021) 2,053 Contractual services 19,350 24,421 (5,071) 19,603 Total current 43,960 55,550 (11,590) 21,656 Capital outlay - 3,426 (3,426) - Total street maintenance 43,960 58,976 (15,016) 21,656 Snow removal: Current: Materials and supplies - 606 (606) - Conti•actual services 55,000 57,653 (2,653) 49,211 Total snow removal 55,000 58,259 (3,259) 49,211 Street lighting: Current: Contractual services 45,000 45,439 (439) 46,144 Arborist: Current: Personal services 11,570 11,410 160 7,838 Contractual services 150 8 142 7 Materials and supplies 100 113 (13) 66 Total arborist 11,820 11,531 289 7,911 4.2 CITY OF OAK PARK HEIGHTS, MINNESOTA GENERAL FUND Statement 7 STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 5 of 5 IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1999 With Comparative Actual Amounts for the Year Ended December 31, 1998 1999 Favorable (Unfavorable) 1998 Budget Actual Variance Actual Expenditures: (continued) Tree removal and planting: Current: Contractual services $23,500 $21,722 $1,778 $15,026 Total public works 179,280 195,927 (16,647) 139,948 Recreation: Parks, playgrounds and rinks: Current: Personal services 48,675 47,110 1,565 91,825 Materials and supplies 2,585 4,307 (1,722) 4,007 Contractual services 32,375 21,824 10,551 24,423 Total cuff ent 83,635 73,241 10,394 120,255 Capital outlay 11,600 764 10,836 223 Total recreation 95,235 74,005 21,230 120,478 Community development: Current: Personal services 57,010 70,994 (13,984) 21,903 Contractual services 1,300 7,127 (5,827) 2,734 Materials and supplies 1,500 6,100 (4,600) 1,213 Total current 59,810 84,221 (24,411) 25,850 Capital outlay - 479 (479) 106 Total community development 59,810 84,700 (24,890) 25,956 Total expenditures 1,975,615 2,049,413 (73,798) 1,926,770 Revenue over (under) expenditures 199,837 98,418 (101,419) 215,347 Other financing sources (uses): Operating transfers from Capital Project Fund - - - 10,591 Operating transfers to Enterprise Fund (65,000) (65,000) - (190,400) Operating transfers to Capital Project Fund (103,000) (29,000) 74,000 (90,923) Total other financing sources (uses) (168,000) (94,000) 74,000 (270,732) Net increase (decrease) in fund balance $31,837 4,418 ($27,419) (55,385) Fund balance - January 1 1,186,663 1,246,347 Residual equity transfer - (4,299) Fund balance - December 31 $1,191,081 $1,186,663 43 CITE' OF OAK PARK HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS Statement 8 COMBINING BALANCE SHEET December 31, 1999 With Comparative Amounts For December 31, 1998 Forfeiture and Economic Totals Seizure Development 1999 1998 Assets Cash and investments $4,124 $82,443 $86,567 $130,192 Interfund loan receivable - 10,313 10,313 - Total assets $4,124 $92,756 $96,880 $130,192 Liabilities and Fund Balance Liabilities: Interfund loan payable $ - $260,000 $260,000 $260,000 Fund balance: Reserved for interfund loan receivable - 10,313 10,313 - Unreserved: Designated for special revenue programs 4,124 - 4,124 3,242 Undesignated - (177,557) (177,557) (133,050) Total fund balance 4,124 (167,244) (163,120) (129,808) Total liabilities and fund balance $4,124 $92,756 $96,880 $130,192 44 CITE' 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, 1999 With Comparative Amounts For The Year Ended December 31, 1998 Forfeiture and Economic _ Totals Seizure Development 1999 1998 Revenue: Intergovernmental - federal block grant $ - $ - $ - $7,220 Earnings on investments 214 5,527 5,741 4,064 Interfund loan interest - 313 313 - Refunds and reimbursements - - - 2,531 Confiscated property 2,649 - 2,649 1,850 Sale of municipal property 1,305 76 1,381 - Total revenue 4,168 5,916 10,084 15,665 Expenditures: Public safety: Current: Materials and supplies - - - 1,012 Contractual services 977 - 977 13 Capital outlay 2,309 - 2,309 19,653 Community development: Current: Materials and supplies - 450 450 7 Contractual services - 19,660 19,660 7,614 Interfund loan interest - 20,000 20,000 10,000 Capital outlay - - - 121,500 Total expenditures 3,286 40,110 43,396 159,799 Revenue over (under) expenditures 882 (34,194) (33,312) (144,134) Fund balance - January 1 3,242 (133,050) (129,808) 14,326 Fund balance - December 31 $4,124 ($167,244) ($163,120) ($129,808) 45 CITY OF OAK PARK HEIGHTS, MINNESOTA DEBT SERVICE FUNDS Statement 10 COMBINING BALANCE SHEET December 31, 1999 With Comparative Totals For December 31, 1998 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 1999 1998 Assets Cash and investments $31,193 $282,630 $219,659 $22,004 $555,486 $541,554 Accounts receivable - - - 35,454 35,454 - Taxes receivable: Delinquent 201 - 827 - 1,028 786 Due from County 265 e 633 e 898 2,243 Special assessments: Delinquent m 2,270 1,410 - 3,680 3,476 Deferred m m 214,574 1,224,999 1,439,573 277,800 Due from County - - 1,577 - 1,577 644 Total assets $31,659 $284,900 $438,680 $1,282,457 $2,037,696 $826,503 Liabilities and Fund Balance Liabilities: Deferred revenue $201 $2,270 $216,811 $1,224,999 $1,444,281 $282,062 Fund balance: Reserved for debt service 31,458 282,630 221,869 57,458 593,415 544,441 Total liabilities and fund balance $31,659 $284,900 $438,680 $1,282,457 $2,037,696 $826,503 46 CITE' 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, 1999 With Comparative Totals For The Year Ended December 31, 1998 G.O. Revenue Bonds of 1991/ Crossover G.0 G.O. G.O. Refunding Refunding Improvement Improvement Bonds of 1992 Bonds Bonds Bonds Totals (Storm Sewer) of 1993 of 1995 of 1998 1999 1998 Revenue: General property taxes: Current and delinquent $ - $ - $59,001 $ - $59,001 $59,026 Storm sewer ad valorem taxes: Current and delinquent 24,759 _ _ - 24,759 25,349 Special assessments: Current and delinquent - - 57,539 - 57,539 63,398 Prepayments - - 23,541 240,000 263,541 14,812 Penalties and interest 2 _ 209 - 211 311 Earnings on investments 1,874 13,263 12,866 384 28,387 29,859 Connection charge - - - 35,454 35,454 - Total revenue 26,635 13,263 153,156 275,838 468,892 192,755 Expenditures: Professional and consulting services - - - 1,422 1,422 - Debt service: Principal 25,000 90,000 120,000 140,000 375,000 215,000 Interest 2,700 42,690 39,420 93,686 178,496 93,905 Total expenditures 27,700 132,690 159,420 235,108 554,918 308,905 Revenue over (under) expenditures (1,065) (119,427) (6,264) 40,730 (86,026) (116,150) Other financing sources: Bond proceeds _ - - - 16,507 Transfer from Capital Project Fund - 135,000 _ - 135,000 125,000 Total other financing sources 0 135,000 0 0 135,000 141,507 Net increase (decrease) in fund balance (1,065) 15,573 (6,264) 40,730 48,974 25,357 Fund balance - January 1 32,523 267,057 228,133 16,728 544,441 519,084 Fund balance - December 31 $31,458 $282,630 $221,869 $57,458 $593,415 $544,441 47 CITY OF OAK PARK HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1999 With Comparative Totals For December 31, 1998 Budgeted Projects and 57th Street/ Osgood/ Capital Equipment Oakgreen Highway 36 Revolving Fund Revolving Extension Intersection Assets Cash and investments $53,813 $35,715 $36,985 $ - Accounts receivable - other 5 - - Interfund loan receivable 260,000 Due from developers - - Special assessments receivable: Delinquent 1,024 - - Deferred 319,582 - - Special deferred - - - Due from County 21,610 - - Total assets $656,034 $35,715 $36,985 $0 Liabilities and Fund Balance Liabilities: Cash overdraft $ - $ - $ - $7,666 Interfund loan payable - - - Escrow deposits payable - - Accounts payable - - 3,200 Contracts payable - - 10,389 - Due to other governments - - - Deferred revenue 320,606 -• - - Total liabilities 320,606 0 13,589 7,666 Fund balance: Reserved for interfand loan receivable 260,000 - - - Unreserved: Designated for capital improvement 75,428 35,715 - Designated for committed contracts - - 23,396 - Undesignated - - - (7,666) Total fund balance 335,428 35,715 23,396 (7,666) Total liabilities and fund balance $656,034 $35,715 $36,985 $0 48 Statement 12 Page 1 of 2 St. Croix Central Superamerica Park Mall Street East Oaks Renewal and Business Valvoline Oil Development (TIF) Reconstruction Swager Replacement District $10,028 $385,245 $95,034 $336,347 $2 $1,451,052 $ - - - 93 - $10,028 $385,245 $95,034 $336,347 $95 $1,451,052 $0 $ - $ - $ - $ - $ - $ $2,457 n _ _ _ 10,313 9,347 - _ - _ _ _ 68 9,347 0 68 0 0 0 12,770 681 385,245 94,966 336,347 95 1,451,052 _ _ _ _ _ - (12,770) 681 385,245 94,966 336,347 95 1,451,052 (12,770) $10,028 $385,245 $95,034 $336,347 $95 $1,451,052 $0 49 CITE' OF OAK PARK HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1999 With Comparative Totals For December 31, 1998 AAE Brekke Brackey - Brackey - Park Kern Oak Park Outlots Memorial Center Pond A & B Assets Cash and investments $362 $37,077 $ - $52,323 Accounts receivable - other - - - - Interfund loan receivable - - _ Due from developers - - _ Special assessments receivable: Delinquent _ _ _ Deferred - - Special deferred - - - Due from County -• - - - Total assets $362 $37,077 $0 $52,323 Liabilities and Fund Balance Liabilities: Cash overdraft $ - $ - $22,390 $ - Interfund loan payable - - - Escrow deposits payable - - - Accounts payable - 8,827 - - Contracts payable - 58,085 - 29,104 Due to other governments - - - - Deferred revenue - - - - Total liabilities 0 66,912 22,390 29,104 Fund balance: Reserved for interfund loan receivable _ - - - Unreserved: Designated for capital improvement 362 - - 23,219 Designated for committed contracts - - - - Undesignated - (29,835) (22,390) - Total fund balance 362 (29,835) (22,390) 23,219 Total liabilities and fund balance $362 $37,077 $0 $52,323 50 Statement 12 Page 2 of 2 AAE 58th Street Sanitary Storm Improvement Boutwells Sewer Water Sewer Totals Phase III Landing Connection Connection Connection _® 1999 1998 $129,185 $ - $309,470 $215,433 $444,921 $3,592,992 $5,185,002 _ 5 260,000 260,000 64,197 _ - - 64,290 411 - - - - 1,024 1,578 m - 10,070 17,485 22,445 369,582 647,712 _ - _ - 14,800 - - _ _ - 21,610 144 - $129,185 $64,197 $319,540 $232,918 $467,366 $4,309,503 $6,109,647 $ - $ - $ - $ - $ - $32,513 $ _ _ - 10,313 - - - _ - - 9,347 9,347 3,489 18,047 - - - 33,631 20,650 32,494 46,150 - - - 176,222 72,458 - - 148 - - 10,070 17,485 22,445 370,606 664,090 35,983 64,197 10,070 17,485 22,445 632,632 766,693 - _ _ - - 260,000 260,000 - - 309,470 215,433 444,921 3,372,934 5,080,647 93,202 - - - - 116,598 27,563 - - - _ - (72,661) (25,256) 93,202 0 309,470 215,433 444,921 3,676,871 5,342,954 $129,185 $64,197 $319,540 $232,918 $467,366 $4,309,503 $6,109,647 51 CITY OF OAK PARIS HEIGHTS, MINNESOTA CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1999 With Comparative Totals For The Year Ended December 31, 1998 Budgeted Projects Capital and 57th Street/ Osgood/ Revolving Equipment Oakgreen Highway 36 Superamerica/ Fund Revolving Extension Intersection Valvoline Oil Revenue: Tax increment taxes $ - $ - $ - $ - $ Special assessments: Current and delinquent 290,814 _ - - Penalty and interest 3,391 - - - Prepayments 28,722 _ _ _ Intergovernmental _ - _ - Earnings on investments 4,100 4,069 663 - 514 Connection charges 8,703 -• - - - Interfund loan interest 20,000 - - Refunds and reimbursements -• 862 Donations and contributions - 250 - Sale of property 250 - 15,158 - - Total revenue 355,980 5,181 15,821 0 514 Expenditures: Professional services 7,244 - m p Contractual services - Developer assistance Administrative charge - - Capital outlay 89,796 85,511 - - Construction costs 27,795 1,352 314,162 2,219 Total expenditures 124,835 86,863 314,162 2,219 0 Revenue over (under) expenditures 231,145 (81,682) (298,341) (2,219) 514 Other financing sources (uses): Bond proceeds - - Operating transfers from General Fund - 19,000 - _ Operating transfers from Capital Project Fund 50,000 - 300,000 A Operating transfers from Enterprise Fund - 15,000 - _ Operating transfers to General Fund - - - - Operating transfers to Debt Service Fund - - - - Operating transfers to Capital Project Fund (300,000) - - - - Total financing sources (uses) (250,000) 34,000 300,000 0 0 Net increase (decrease) in fund balance (18,855) (47,682) 1,659 (2,219) 514 Fund balance - January 1 354,283 83,397 21,737 (5,447) 167 Residual equity transfer - - - _ Fund balance (deficit) - December 31 $335,428 $35,715 $23,396 ($7,666) $681 52 Statement 13 Page 1 of 2 St. Croix Valley View Central Park Mall Street East Oaks Estates Renewal and Business Development (TIF) Reconstruction Swager Krongard Replacement District $ - $13,945 $ - $ - $ $ - $ 480 - 19,745 5,385 17,335 - (79) 68,775 25 427 - 665 - - - - w 3,000 20,890 19,330 17,335 0 348 68,775 3,025 1,163 9,755 - - - - - - 862 - - - - - - 8,367 - - - - - 7,253 - - - - - - - 7,553 - 450 - 25,795 1,163 26,237 7,553 0 450 0 25,795 19,727 (6,907) 9,782 0 (102) 68,775 (22,770) 10,000 109,225 0 0 0 0 0 109,225 10,000 19,727 (6,907) 9,782 0 (102) 178,000 (12,770) 365,518 101,873 326,565 95 102 1,273,052 - $385,245 $94,966 $336,347 $95 $0 $1,451,052 ($12,770) 53 CI'T'Y OF OAK PARK HEIGHT'S, MINNESO'T'A CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1999 With Comparative Totals For The Year Ended December 31, 1998 AAE Brek ke Brackey - Brackey - 58th Street Park Kern Oak Park Outlots Improvement Memorial Center Pond A & B Phase III Revenue: Tax increment taxes $ - $ - $ _ $ _ $ _ Special assessments: Current and delinquent - - - - Penalty and interest - - - - Prepayments - - - Intergovernmental - - - - - Earnings on investments 2 25,045 782 3,002 25,311 Connection charges - - - - interfund loan interest - - - - m Refunds and reimbursements - - - n Donations and contributions 360 - - m Sale of property - ° - - - Total revenue 362 25,045 782 3,002 25,311 Expenditures: Professional services - - - - Contractual services - - - Developer assistance - - - Administrative charge - - - Capital outlay - •- - - - Construction costs - 987,378 20,082 35,510 741,034 Total expenditures 0 987,378 20,082 35,510 741,034 Revenue over (under) expenditures 362 (962,333) (19,300) (32,508) (715,723) Other financing sources (uses): Bond proceeds - - - Operating transfers from General Fund - - - - - Operating transfers from Capital Project Fund - - - - - Operating transfers from Enterprise Fund - - - - - Operating transfers to General Fund - - - -- - Operating transfers to Debt Service Fund - - - - - Operating transfers to Capital Project Fund Total financing sources (uses) 0 0 0 0 0 Net increase (decrease) in fund balance 362 (962,333) (19,300) (32,508) (715,723) Fund balance - January 1 - 932,498 (3,090) 55,727 808,925 Residual equity transfer - - _ _ - Fund balance (deficit) - December 31 $362 ($29,835) ($22,390) $23,219 $93,202 54 Statement 13 Page 2 of 2 AAE Autumn Sanitary Storm Ridge Boutwells Sewer Water Sewer Totals 3rd Addition Landing Connection Connection Connection 1999 19 $ _ $ _ $ _ $ _ $ - $13,945 $43,834 6,244 10,840 13,436 321,814 32,726 - - - 3,391 83 28,722 63,288 _ _ _ - 8,192 - 16,481 15,928 24,495 231,578 207,074 ® 5,175 8,161 9,793 31,832 796,131 20,000 10,000 17,777 1,113,633 - - - 1,132,699 189,936 - - _ - 4,275 22,907 - - - 15,408 - 17,777 1,113,633 27,900 34,929 47,724 1,803,664 1,374,171 - - 18,162 73,110 - 862 _ - - 8,367 26,300 - _ - 7,253 27,009 - _ _ - 175,307 138,180 1,058 1,113,633 - g _ - 3,278,021 1,297,353 1,058 1,113,633 0 0 0 3,487,972 1,561,952 16,719 0 27,900 34,929 47,724 (1,684,308) (187,781) - _ - - - 1,941,791 29,000 90,923 - 350,000 641,518 - - 124,225 115,753 - (10,591) (20,000) (115,000) - (135,000) (125,000) (50,000) (350,000) _ (641,518) 0 0 (20,000) _ (115,000) (50,000) 18,225 2,012,876 16,719 0 7,900 (80,071) (2,276) (1,666,083) 1,825,095 (16,719) - 301,570 295,504 447,197 5,342,954 3,513,560 - - _ - 4,299 $0 $0 $309,470 $215,433 $444,921 $3,676,871 $5,342,954 55 CPI'Y OF OAK PARK HEIGHTS, MINNESOTA ENTERPRISE FUND Statement 14 BALANCE SHEET December 31, 1999 With Comparative Amounts for December 31, 1998 Assets 1999 1998 Current assets: Cash and cash equivalents $436,920 $508,312 Accounts receivable: Customers 107,128 135,151 Certified to County 10,638 8,928 Other 773 441 Due from other governmental units 437 20,733 Prepaid MCES 21,952 18,757 Total current assets 577,848 692,322 Fixed assets: Land 60,000 60,000 Buildings and structures 1,254,845 1,254,845 Machinery and equipment 162,707 141,829 Distribution and collection system 4,872,289 4,433,445 Total 6,349,841 5,890,119 Less: Allowance for depreciation (1,703,889) (1,582,960) Net fixed assets 4,645,952 4,307,159 Total assets $5,223,800 $4,999,481 Liabilities and Fund Equity Current liabilities: Accounts payable $26,274 $52,201 Salaries payable 1,308 2,462 Due to other governmental units 10,815 16,028 Total current liabilities 38,397 70,691 Noncurrent liabilities: Compensated absences payable 22,987 13,389 Total liabilities 61,384 84,080 Fund equity: Contributions from property owners - net 4,403,495 4,073,875 Retained earnings: Reserved for debt service reserve 661,765 661,765 Unreserved 97,156 179,761 Total fund equity 5,162,416 4,915,401 Total liabilities and fund equity $5,223,800 $4,999,481 56 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, 1999 With Comparative Totals For The Year Ended December 31, 1998 Water Sewer Storm Sewer Totals Operating Operating Sanitation Operating 1999 1998 Revenue: Customer billings $279,160 $347,099 $71,585 $13,628 $711,472 $611,537 Penalties 5,896 7,520 - - 13,416 8,046 Plumbing permits 1,545 615 - - 2,160 1,110 Meter charges 10,930 - - - 10,930 6,178 Charges for services 1,899 1,418 - - 3,317 10,675 Total operating revenue 299,430 356,652 71,585 13,628 741,295 637,546 Expenses: Personal services 112,133 123,039 500 345 236,017 205,237 Contractual services 45,886 8,684 146,948 753 202,271 333,666 Refunds and reimbursements -- 500 - - 500 550 MCES charges - 250,780 - - 250,780 213,651 Materials and supplies 7,146 1,728 82 251 9,207 11,663 Administrative and personnel charge 19,550 40,025 21,080 - 80,655 63,525 Recycling award - - 600 - 600 - Depreciation: On purchased assets 9,285 2,420 - - 11,705 11,443 On contributed assets 61,908 47,317 - - 109,225 107,253 Total operating expenses 255,908 474,493 169,210 1,349 900,960 946,988 Operating income (loss) $43,522 ($117,841) ($97,625) $12,279 (159,665) (309,442) Other income: Earnings on investments 27,060 32,091 Net income (loss) before operating transfers (132,605) (277,351) Other financing sources (uses): Operating transfer from General Fund 65,000 190,400 Operating transfer to Capital Project Funds (124,225) (115,753) Total other financing sources (uses) (59,225) 74,647 Net income (loss) (191,830) (202,704) Other increases: Credit arising from transfer of depreciation to contributions from property owners 109,225 107,253 Net increase (decrease) in retained earnings (82,605) (95,451) Retained earnings - January 1 841,526 936,977 Retained earnings - December 31 $758,921 $841,526 57 CITY OF OAK PARK HEIGHTS, MINNESOTA ENTERPRISE FUND Statement 16 STATEMENT OF CASH FLOWS For The Year Ended December 31, 1999 With Comparative Amounts For The Year Ended December 31, 1998 1999 1998 Cash flows from operating activities: Operating income (loss) ($159,665) ($309,442) Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation 120,930 118,696 Change in assets and liabilities: Decrease (increase) in receivables 46,277 (15,342) Decrease (increase) in prepaid expenses (3,195) 817 Increase (decrease) in payables (22,696) 76,057 Net cash flows from operating activities (18,349) (129,214) Cash flows from noncapital financing activities: Operating transfers from other funds 65,000 190,400 Operating transfers to other funds (124,225)_ (107,253) Net cash flows from noncapital financing activities (59,225) 83,147 Cash flows from capital and related financing activities: Operating transfer to other funds - (8,500) Acquisition of fixed assets (20,878) (7,216) Net cash flows from capital and related financing activities (20,878) (15,716) Cash flows from investing activities: Interest received on investments 27,060 32,091 Net increase (decrease) in cash and cash equivalents (71,392) (29,692) Cash and cash equivalents - January 1 508,312 538,004 Cash and cash equivalents - December 31 $436,920 $508,312 Significant noncash investing, capital and financing activities: During 1998 and 1999, fixed assets were contributed to the Enterprise Fund as follows: 1999 1998 Water Operating Fund $187,914 $55,053 Sewer Operating Fund 250,931 43,917 Total $438,845 $98,970 58 CITY OF OAK PARK HEIGHTS, MINNESOTA AGENCY FUNDS Statement 17 COMBINING BALANCE SHEET December 31, 1999 With Comparative Totals for December 31, 1998 Developer Developer Deposit Escrow Investment Totals Fund Fund Fund 1999 1998 Assets Cash and investments $ - $31,000 $ - $31,000 $33,000 Accrued interest receivable - - 111,294 111,294 146,730 Accounts receivable - certified 2,475 - - 2,475 - Due from developers 45,063 - - 45,063 42,005 Total assets $47,538 $31,000 $111,294 $189,832 $221,735 Liabilities Cash overdraft $39,473 $ $111,294 $150,767 $181,764 Escrow deposits payable - 31,000 - 31,000 33,000 Accounts payable 6,412 - - 6,412 6,253 Due to developers 1,653 - - 1,653 718 Total liabilities $47,538 $31,000 $111,294 $189,832 $221,735 59 CITE' OF OAK PARK HEIGHTS, MINNESOTA AGENCY FUNDS Statement IS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For The Year Ended December 31, 1999 Balance Balance January 1, December 31, 1999 Additions Deletions 1999 Developer Deposit Fund: Assets: Accounts receivable - certified $ - $2,475 $ - $2,475 Due from developers 42,005 45,063 42,005 45,063 Total assets $42,005 $47,538 $42,005 $47,538 Liabilities: Cash overdraft $35,034 $4,439 $ - $39,473 Accounts payable 6,253 6,412 6,253 6,412 Due to developers 718 1,653 718 1,653 Total liabilities $42,005 $12,504 $6,971 $47,538 Developer Escrow Fund- Assets: Cash and investments $33,000 $ - $2,000 $31,000 Liabilities: Escrow deposits payable $33,000 $31,000 $33,000 $31,000 Investment Fund: Assets: Accrued interest receivable $146,730 $111,294 $146,730 $111,294 Liabilities: Cash overdraft $146,730 $ - $35,436 $111,294 Total Agcncvl Assets: Cash and investments $33,000 $ - $2,000 $31,000 Accounts receivable - certified - 2,475 - 2,475 Accrued interest receivable 146,730 111,294 146,730 111,294 Due from developers 42,005 45,063 42,005 45,063 Total assets $221,735 $158,832 $190,735 $189,832 Liabilities: Cash overdraft $181,764 $4,439 $35,436 $150,767 Escrow deposits payable 33,000 31,000 33,000 31,000 Accounts payable 6,253 6,412 6,253 6,412 Due to developers 718 1,653 718 1,653 Total liabilities $221,735 $43,504 $75,407 $189,832 60 CITY OF OAK PARK HEIGHTS, MINNESOTA SCHEDULE OF GENERAL FIXED ASSETS Statement 19 For The Year Ended December 31, 1999 Balance Balance January 1, December 31, Description 1999 Additions Deletions 1999 Land $482,859 $ - $ - $482,859 Land improvements 326,601 - - 326,601 Buildings and structures 1,023,197 115,782 - 1,138,979 Machinery and equipment 323,531 124,212 28,849 418,894 Furniture and fixtures 295,214 63,886 36,214 322,886 Totals $2,451,402 $303,880 $65,063 $2,690,219 61 CITY OF OAK PARK HEIGHTS, MINNESOTA SCHEDULE OF GENERAL LONG -TERM DEBT Statement 20 December 31, 1999 With Comparative Amounts For December 31, 1998 1999 1998 Amount Available And To Be Provided For The Retirement of Long -Term Debt Bonds: Amount available in Debt Service Funds $593,415 $544,441 Amount to be provided from future tax levies/ special assessment collections, and connection charges 2,811,585 3,235,559 Compensated absences: Amount available in General Fund 102,958 76,617 Total available and to be provided $3,507,958 $3,856,617 General Long -Term Debt Payable Bonds payable: General Obligation Bonds: G.O. Refunding Bonds of 1992 $25,000 $50,000 G.O. Crossover Refunding Bonds of 1993 810,000 900,000 Special Assessment Bonds: G.O. Improvement Bonds of 1995 720,000 840,000 G.O. Improvement Bonds of 1998 1,850,000 1,990,000 Total bonds payable 3,405,000 3,780,000 Compensated absences payable 102,958 76,617 Total general long -term debt payable $3,507,958 $3,856,617 62 SUPPLEMENTARY FINANCIAL INFORMATION 63 CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS Exhibit 1 December 31, 1999 Final Net Bonds Principal Interest Payment Interest Authorized Retired Outstanding Due Due Date Due Rate And Issued To Date At 12/31/99 In 2000 In 2000 Bonded indebtedness: General debt: G.O. Refunding Bonds of 1992 09/01/92 12/01/00 5.48% $150,000 $125,000 $25,000 $25,000 $1,375 G.O. Crossover Refunding Bonds of 1993 04/01/93 12/01/06 4.71% 1,140,000 330,000 810,000 95,000 38,910 Special assessments bonds: G.O. Improvement bonds of 1995 07/01/95 12/01/05 4.69% 1,130,000 410,000 720,000 120,000 34,140 G.O. Improvement bonds of 1998 10/01/98 12/01/13 4.19% 1,990,000 140,000 1,850,000 150,000 75,263 Total indebtedness $4,410,000 $1,005,000 $3,405,000 $390,000 $149,688 64 CI'T'Y OF OAK PARK HEIGHT'S, MINNESO'T'A REVENUE BONDS AND GENERAL DEBT BONDS Exhibit 2 SCHEDULE OF DEBT SERVICE PAYMENTS TO MATURITY December 31, 1999 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 $25,000 $810,000 $720,000 $1,850,000 $3,405,000 Future interest payable 1,375 163,375 121,860 563,675 850,285 Totals $26,375 $973,375 $841,860 $2,413,675 $4,255,285 Payments to maturity: 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 $26,375 $973,375 $841,860 $2,413,675 $4,255,285 65 CITY OF OAK PARK HEIGHTS, MINNESOTA INSURANCE IN FORCE Exhibit 3 December 31, 1999 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: Cleric - Treasurer 50,000 Deputy Clerk - Treasurer 50,000 Bond - Public Employees Blanket Bond 50,000 Open Meeting Law Policy - Defenses Costs 20,000 66 CITY OF OAK PARK HEIGHTS, MINNESOTA FUTURE SCHEDULED TAX LEVIES Exhibit 4 December 31, 1999 Year Of G.O. Improvement Collection Bonds of 1995 2000 $59,400 2001 60,000 2002 60,000 2003 60,000 2004 60,000 2005 60,000 Totals $359,400 67 CITY OF OAK PARK HEIGHTS, MINNESOTA TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Exhibit 5 1999/2000 1998/1999 Taxable valuations: Real estate $6,571,300 $6,240,081 Personal property 120,574 114,675 Fiscal disparity: Contribution (784,872) (547,378) Distribution 298,275 299,919 Captured tax increment value - (30,380) Total $6,205,277 $6,076,917 Tax levy: City -wide: General revenue $1,380,800 $1,325,000 Debt service 59,400 59,400 Total City -wide 1,440,200 1,384,400 Storm Sewer District: G.O. Refunding Bonds of 1992 - 25,000 Total tax levy $1,440,200 $1,409,400 Tax capacity rate: City -wide: General revenue 22.646% 21.933% Debt service 0.974% 0.962% Total City -wide 23.620% 22.895% Storm. Sewer District: Storm Sewer Bonds of 1982 0.000% 0.833% Total 23.620% 23.728% Note: The tax levies shown above represent net tax levies after reduction for state aids. 68 CITY OF OAK PARK HEIGHTS, MINNESOTA SCHEDULE OF CONSTRUCTION COSTS Exhibit 6 December 31, 1999 Legal Expended and Current Prior Contractor Engineer Fiscal Other Total Year Years 57th St/Oakgreen Extension $211,376 $86,378 $6,256 $208,528 $512,538 $314,162 $198,376 Osgood/Highway 36 Intersection - 7,666 - - 7,666 2,219 5,447 Street Reconstruction 1,001,418 238,832 4,866 68,519 1,313,635 7,553 1,306,082 Kern Center 777,125 145,416 16,227 124,609 1,063,377 987,378 75,999 Valley View Estates 257,813 56,200 1,910 7,300 323,223 450 322,773 Central Business District - 15,000 - 10,795 25,795 25,795 - Brackey - Oak Park Pond 497,927 98,772 4,695 41,026 642,420 20,082 622,338 Brackey Outlot - A & B 140,362 24,616 2,861 4,037 171,876 35,510 136,366 AAE - 58th Street - Phase III 649,874 119,772 6,597 114,637 890,880 741,034 149,846 AAE - Autumn Ridge - 3rd Addition 171,954 30,932 472 6,243 209,601 1,058 208,543 AAE - Boutwells Landing 923,002 164,114 455 26,062 1,113,633 1,113,633 - Total - All Funds $4,630,851 $987,698 $44,339 $611,756 $6,274,644 $3,248,874 $3,025,770 69 This page intentionally left blank. 70 STATISTICAL SECTION 71 CITE' OF OAK PARK HEIGHTS, MINNESOTA GENERAL AND SPECIAL REVENUE FUNDS Table 1 EXPENDITURES BY FUNCTION Years 1990 Through 1999 (UNAUDITED) General Public Public Community Capital Year Total Government Safety Works Sanitation Recreation Development Outlay 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 1999 2,092,809 772,729 887,643 192,501 - 73,241 124,331 42,364 72 CITY OF OAK PARIS HEIGHTS, MINNESOTA GENERAL AND SPECIAL REVENUE FUNDS Table 2 REVENUE BY SOURCE Years 1990 Through 1999 (UNAUDITED) Licenses Charges Fines Earnings Inter- and for and on Year Total Taxes governmental Permits Services Forfeits Investments Miscellaneous 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 1999 2,157,915 1,333,194 192,194 227,693 230,147 58,886 42,711 73,090 73 CITY OF OAK PARK HEIGHTS, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Table 3 Years 1990 Through 1999 (UNAUDITED) Percent Total Total of Collection Delinquent Tax Levy Current Delinquent Total as a Outstanding Percent of Taxes (including Current Tax Levy Tax Tax Percent Delinquent Current affable HACA) Collections Collected Collections Collections of Levy Taxes Levy 1990 1,205,556 1,177,782 97.70% $13,024 $1,190,806 98.78% $33,458 2.78% 1991 1,199,554 1,129,373 94.15% 15,103 1,144,476 95.41% 35,036 2.92% 1992 1,199,554 1,182,272 98.56% 8,815 1,191,087 99.29% 39,017 3.25% 1993 1,302,310 1,294,478 99.40% 26,441 1,320,919 101.43% 17,563 1.35% 1994 1,344,630 1,330,300 98.93% 2,344 1,332,644 99.11% 21,146 1.57% 1995 1,430,985 1,421,284 99.32% 12,034 1,433,318 100.16% 18,813 1.31% 1996 1,459,621 1,452,564 99.52% 7,674 1,460,238 100.04% 18,196 1.25% 1997 1,469,247 1,460,795 99.42% 4,194 1,464,989 99.71% 10,946 0.75% 1998 1,598,540 1,615,619 101.07% 5,726 1,621,345 101.43% 16,863 1.05% 1999 1,484,383 1,469,976 99.03% 4,296 1,474,272 99.32% 23,981 1.62% * 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. 74 CITY OF OAK PARK HEIGHTS, MINNESOTA SPECIAL ASSESSMENT COLLECTIONS Table 4 Years 1990 Through 1999 (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) 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 1999 416,712 414,520 99.47% 1,493 99.83% 6,782 * Note: Special assessments for 1990 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 fi•om 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. 75 CI'T'Y OF OAK PARK HEIGHTS, MINNESOTA PRINCIPAL TAXPAYERS (Ten Largest Taxpayers) Table S Taxes Payable in 1999 (UNAUDITED) Percent of Percent of Total Net Total Tax Market Market Tax Capacity Property Taxpayer Value Value Capacity Value Classification Northern States Power $77,115,600 28.1% $3,361,282 55.3% Public Utilities Watson Centers Inc 7,308,800 2.7% 314,916 5.2% Commercial 1<�TJ Limited Partnership Eleven 6,943,400 2.5% 305,666 5.0% Commercial Menard Inc 4,944,100 1.8% 219,072 3.6% Commercial Wal -Mart Store Inc 3,351,900 1.2% 147,896 2.4% Commercial Oak Ridge Place of Oak Park 2,565,100 09% 77,120 1.3% Res. over 4 units 158 Club 1,561,100 0.6% 66,172 1.1% Commercial Stillwater West LLC 1,636,500 0.6% 63,498 1.0% Commercial Valley Senior Services Alliance 3,830,100 1.4% 61,156 1.0% Agricultural Oak Park Associates 1,821,600 0.7% 54,766 0.9% Res. Over 4 units Totals $111,078,200 40.5% $4,671,544 76.9% Total City $274,454,600 $6,076,917 SOURCE: Washington County Auditor e Treasurer Taxation Division. NOTES: (1) This list is based only on parcels paying more than $5,000 net tax (2) If a taxpayer has property consisting of more than one classification, only one is shown. 76