HomeMy WebLinkAboutAnnual Financial Report CITY OF OAK PARK HEIGHTS, MINNESOTA
ANNUAL FINANCIAL REPORT
December 31, 2002
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CITY 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:
Balance Sheet Statement 6 37
Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Statement 7 38
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 51
Enterprise Funds:
Balance Sheet Statement 14 54
Combining Statement of Revenue, Expenses and Changes in Retained Earnings Statement 15 55
Statement of Cash Flows Statement 16 56
CITY OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
Number
Agency Funds:
Combining Balance Sheet Statement 17 57
Combining Statement of Changes in Assets and Liabilities Statement 18 58
General Fixed Assets Account Group:
Schedule of General Fixed Assets Statement 19 59
General Long -Term Debt Account Group:
Schedule of General Long -Term Debt Statement 20 60
Supplementary Financial Information
Combined Schedule of Indebtedness Exhibit 1 62
Debt Service Payments to Maturity:
Revenue Bonds and General Debt Bonds Exhibit 2 63
Future Scheduled Tax Levies Exhibit 3 64
Taxable Valuations, Tax Levies and Tax Rates Exhibit 4 65
Schedule of Construction Costs Exhibit 5 66
Statistical Section
General and Special Revenue Funds - Expenditures by Function -
Years 1993 through 2002 Table 1 68
General and Special Revenue Funds - Revenue by Source -
Years 1993 through 2002 Table 2 69
Property Tax Levies and Collections - Years 1993 through 2002 Table 3 70
Special Assessment Collections - Years 1993 through 2002 Table 4 71
Principal Taxpayers Table 5 `72
CI'T'Y OF OAK PARK HEIGHTS, MINNESOTA
ORGANIZATION
December 31, 2002
Term Expires
Mayor:
David Beaudet December 31, 2004
Councilmembers:
Les Abrahamson December 31, 2006
Mark Swenson December 31, 2006
Jack Doerr December 31, 2004
Mary McComber December 31, 2004
Acting Administrator:
Judy Holst Appointed
Deputy Clerk/Finance Director:
Judy Holst Appointed
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IALL
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Our audit was performed for the purpose of forming an opinion on the general purpose
financial statements taken as a whole. The combining, individual fiord 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, 2003
14e zi;� ® c
HLB TAUTGES IZEDPATH, LTD.
Certified Public Accountants
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GENERAL PURPOSE FINANCIAL STATEMENTS
7
CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINED BALANCE SHEET -
ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 2002
Governmental Fund Types
Special Debt
Assets General Revenue Service
Cash and investments $1,321,714 $79,342 $585,304
Accrued interest receivable - _
Accounts receivable 26,445 -
Due from other governmental units 31,560 - -
Due from developers - _
Prepaid items - - _
Taxes receivable:
Delinquent 19,545 - 609
Due from County 8,300 - 253
Special assessments receivable - - 945,838
Fixed assets (net of accumulated depreciation) - - -
Amount available in general fluid - _
Amount available in debt service fund - _.
Amount to be provided for retirement of general long -term debt - _
Total assets $1,407,564 $79,342 $1,532,004
Liabilities, Equity and Other Credits
Liabilities:
Cash overdraft $ $ _ $
Escrow deposits payable _ _ -
Accounts payable 35,153 1,250
Salaries payable 867 _ _
Contracts payable - _
Due to other governmental units 21,750
Due to developers _ _
Compensated absences payable
Bonds payable - _
Deferred revenue 20,565 - 942,623
Total liabilities 78,335 0 943,873
Equity and other credits:
Invested in general fixed assets - - -
Contributions - net _ -
Retained earnings:
Reserved - _ -
Unreserved - _ _
Fund balance:
Reserved - - 588,131
Unreserved:
Designated 1,329,229 79,342 -
Undesignated _ _ -
Total equity and other credits 1,329,229 79,342 588,131
Total liabilities, equity and other credits $1,4 07,564 $79,342 $1,532,004
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 2002 2001
$4,391,079 $407,153 $30,574 $ - $ - $6,815,166 $6,365,851
- 164,379 - - 164,379 125,810
- 166,670 - - - 193,115 176,083
1,125 - - - - 32,685 29,583
5,931 - 19,460 - - 25,391 46,258
- 26,173 - - - 26,173 23,699
20 - - _ - 20,174 24,199
- _ _ _ - 8,553 10,595
255,132 - - - - 1,200,970 1,213,998
- 5,785,280 - 3,485,632 - 9,270,912 8,611,279
- - - 122,365 122,365 132,476
_ - 588,131 588,131 629,619
_ 1,713,560 1,713,560 2,025,381
$4,653,287 $6,385,276 $214,413 $3,485,632 $2,424,056_ $20,181,574 $19,414,831
$1,602 $ - $164,379 $ - $ - $165,981 $145,350
9,347 - 14,000 - - 23,347 20,347
5,699 27,322 6,541 - - 75,965 199,152
- 2,242 - - - 3,109 2,983
7,053 - - - - 7,053 7,966
- 7,824 - - - 29,574 8,031
- 29,493 - - 29,493 13,814
37,367 - - 154,056 191,423 167,816
- _ _ - 2,270,000 2,270,000 2,655,000
255,152 - - - - 1,218,340 1,231,400
278,853 74,755 214,413 0 2,424,056 a 4,014,285 4,451,859
- - - 3,485,632 - 3,485,632 2,815,619
- 5,400,937 - - _ 5,400,937 5,546,885
- 200,000 - - - 200,000 200,000
- 709,584 - - 709,584 576,720
- - _ _ - 588,131 629,619
4,374,624 - - - - 5,783,195 5,194,987
(190) _ - - - (190) (858)
4,374,434 6,310,521 0 3,485,632 0 16,167,289 14,962,972
$4,653,287 $6,385,276 $214,413 $3,485,632 $2,424,056 $20,181,574 $19,414,831
The accompanying notes are an integral part of these financial statements.
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CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND Statement 2
CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES
For The Year Ended December 31, 2002
Totals
Special Debt Capital (Memorandum Only)
General Revenue Service Project 2002 2001
Revenue:
General property taxes $1,748,634 $ - $53,812 $9 $1,802,455 $1,583,600
Special assessments - - 164,882 88,957 253,839 439,088
Intergovernmental 180,858 7,170 3,050 - 191,078 181,344
Licenses and permits 183,596 - - - 183,596 213,651
Charges for services 188,093 - - - 188,093 197,318
Fines and forfeits 63,211 - - - 63,211 63,655
Earnings on investments 32,052 2,938 26,112 170,062 231,164 317,956
Connection charges - - - 199,880 199,880 72,602
Escrow /interfund loan interest - - _. - - 20,000
Refunds and reimbursements 69,074 1,150 - 164,258 234,482 152,840
Donations and contributions 100 - - 93,700 93,800 1,700
Other 10,335 13,595 - - 23,930 6,627
Total revenue 2,475,953 24,853 247,856 716,866 3,465,528 3,250,381
Expenditures:
Current:
General government 779,454 - - 779,454 919,622
Public safety 999,139 2,147 - - 1,001,286 967,854
Public works 134,337 - _ 85,205 219,542 244,687
Recreation 87,932 - - - 87,932 t09,481
Community development 112,240 535 - _ 112,775 126,356
Capital outlay 5,865 8,680 - 52,975 67,520 58,989
Deb( service:
Principal - - 895,000 - 895,000 850,000
Interest - - 114,618 - 114,618 133,352
Paying agent fees - - 3,810 - 3,810 4,052
Developer assistance - - - - - 95,100
Administrative charge - - - - - 452
Construction costs - - - 203,600 203,600 _ 177,119
Total expenditures 2,118,967 11,362 1,013,428 341,780 3,485,537 3,687,064
Revenue over (under) expenditures 356,986 13,491 (765,572) 375,086 (20,009) (436,683)
Other financing sources (uses):
Bond proceeds - rebinding bonds - - 510,000 - 510,000 483,779
Operating transfers from other funds - - 220,000 265,922 485,922 685,041
Operating transfers to other funds (200,875) - - (220,000) (420,875) (617,365)
Discount on debt issued - (7,650) - (7,650) -
Total other financing sources (uses) (200,875) 0 722,350 45,922 567,397 551,455
Net increase (decrease) in fund balance 156,111 13,491 (43,222) 421,008 547,388 114,772
Fund balance - January 1 1,173,118 65,851 629,619 3,955,160 5,823,748 5,708,976
Residual equity transfer - - 1,734 (1,734) - -
Fund balance - December 31 $1,329,229 $79,342 $588,131 $4,374,434 $6,371,136 $5,823,748
The accompanying notes are an integral part of these financial statements.
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CITE' OF OAK PARK HEIGHTS, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND Statement 3
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERALFUND
For The Year Ended December 31, 2002
2002
Favorable
(Unfavorable) 2001
Budget Actual Variance Actual
Revenue:
General property taxes $1,775,244 $1,748,634 ($26,610) $1,524,300
Intergovernmental 182,981 180,858 (2,123) 179,591
Licenses and permits 179,010 183,596 4,586 213,651
Charges for services 172,763 188,093 15,330 197,318
Fines and forfeits 66,400 63,211 (3,189) 63,655
Earnings on investments 30,000 32,052 2,052 48,559
Refunds and reimbursements 61,500 69,074 7,574 68,154
Donations and contributions - 100 100 1,200
Other 10,200 10,335 135 1,448
Total revenue 2,478,098 2,475,953 (2,145) 2,297,876
Expenditures:
Current:
General government 841,215 779,454 61,761 919,622
Public safety 1,022,545 999,139 23,406 966,000
Public works 179,600 134,337 45,263 168,011
Recreation 89,970 87,932 2,038 109,481
Community development 115,485 112,240 3,245 105,956
Capital outlay - 5,865 (5,865) 10,503
Total expenditures 2,248,815 2,118,967 129,848 2,279,573
Revenue over expenditures 229,283 356,986 127,703 18,303
Other financing sources (uses):
Operating transfers to other funds (200,875) (200,875) - (125,286)
Net increase (decrease) in fund balance $28, 156,111 $127,703 (106,983)
Fund balance - January 1 1,173,118 1,280,101
Fund balance - December 31 $1,329,229 $1,173,118
The accompanying notes are an integral part of these financial statements.
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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, 2002
Enterprise Fund
2002 2001
Operating revenue:
Customer billings $975,760 $950,271
Penalties 11,309 12,701
Plumbing permits 1,635 450
Meter sales 5,725 12,460
Charges for services 3,222 4,387
Total operating revenue 997,651 980,269
Operating expenses:
Personal services 231,424 268,846
Contractual services 355,966 273,788
Refunds and reimbursements - 842
Recycling award 606 535
MCES charges 257,783 243,670
Materials and supplies 9,887 8,118
Administrative and personnel charges 89,780 95,300
Depreciation 159,790 148,448
Total operating expenses 1,105,236 1,039,547
Net income (loss) from operations (107,585) (59,278)
Nonoperating revenue (expenses):
Earnings on investments 18,941 29,598
Capital contributions 147,920 -
Loss on disposal of fixed assets (7,312) -
Total nonoperating revenue (expenses) 159,549 29,598
Net income (loss) before operating transfers 51,964 (29,680)
Other financing sources (uses):
Operating transfer from other funds 88,500 83,000
Operating transfer to other funds (153,547) (150,676)
Total other financing sources (uses) (65,047) (67,676)
Net income (loss) (13,083) (97,356)
Other increases:
Credit arising from transfer of depreciation to
contributions from property owners 145,947 135,276
Net increase in retained earnings 132,864 37,920
Retained earnings - January 1 776,720 738,800
Retained earnings - December 31 $909,584 $776,720
The accompanying notes are an integral part of these financial statements.
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CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINED STATEMENT OF CASH FLOWS - Statement 5
PROPRIETARY FUND TYPE
For The Year Ended December 31, 2002
Enterprise Fund
2002 2001
Cash flows from operating activities:
Operating income (loss) ($107,585) ($59,278)
Adjustments to reconcile operating income to
net cash flows from operating activities:
Depreciation 159,790 148,448
Change in assets and liabilities:
Decrease (increase) in receivables (26,329) 151,757
Decrease (increase) in prepaid expenses (2,474) (2,455)
Increase (decrease) in payables 13,636 (177,762)
Net cash rows from operating activities 37,038 60,710
Cash flows from noncapital financing activities:
Operating transfers from other funds 88,500 83,000
Operating transfers to other funds (153,547) (150,676)
Net cash flows from noncapital financing activities (65,047) (67,676)
Cash flows from capital and related financing activities:
Acquisition of fixed assets (8,803) (21,651)
Cash flows from investing activities:
Earnings on investments 18,941 29,598
Net increase (decrease) in cash and cash equivalents (17,871) 981
Cash and cash equivalents - January 1 425,024 424,043
Cash and cash equivalents - December 31 $407,153 $425,024
Significant noncash investing, capital and financing activities:
During 2002 and 2001, fixed assets were contributed to the Enterprise Fund as follows:
2002 2001
Water Operating Fund $123,192 $177,042
Sewer Operating Fund 24,728 356,533
Total $147,920 $533,575
The accompanying notes are an integral part of these financial statements.
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CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Oak Park Heights operates under the State of Minnesota Statutory Plan A form of government.
The governing body consists of a five member City council elected by voters of the City.
The financial statements of the City of Oak Park Heights have been prepared in conformity with generally
accepted accounting principles as applied to governmental units by the Governmental Accounting Standards
Board (GASB). The following is a summary of the significant accounting policies.
A. FINANCIAL REPORTING ENTITY
As required by generally accepted accounting principles, the financial statements of the reporting
entity include those of the City of Oak Park Heights (the primary government) and its component
units, entities which the City is considered to be financially accountable. Blended component units,
although legally separate entities, are, in substance, part of the City's operations and so data from these
units are combined with data of the primary government.
BLENDED COMPONENT UNITS
The HRA of the City of Oak Park Heights is a separate legal entity which is authorized to expend
monies generated by the City's tax increment district. The City council also serve as HRA board
members. The transactions of the HRA are confined to the St. Croix Mall TIF Capital Project
Fund. Separate financial statements are not prepared for the HRA.
The EDA of the City of Oak Park Heights is a separate legal entity. The EDA board members are
substantially the same as the City council in that four of the five board members are council
members and the fifth board member is the City finance director. Separate financial statements
are not prepared by the EDA.
B. FUND ACCOUNTING
The accounting system of the City is organized and operated on a fund basis. A fund is defined as a
fiscal and accounting entity with a self - balancing set of accounts recording cash and other financial
resources, together with all related liabilities and residual equities or balances, and changes therein,
which are segregated for the purpose of carrying on specific activities or attaining certain objectives in
accordance with special regulations, restrictions or limitations.
The following types of funds and account groups are employed by the City:
GOVERNMENTAL FUNDS
General Fund - to account for all financial resources except those required to be accounted for in
another fund.
Special Revenue Funds - to account for the proceeds of specific revenue sources that are legally
restricted to expenditure for specified purposes.
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CI'T'Y OF OATS PARK HEIGHT'S, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
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 Project 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
Enterprise Funds - to account for operations: (a) that are financed and operated in a manner
similar to private business enterprises - where the intent of the governing body is that the costs
(expenses, including depreciation) of providing goods or services to the general public on a
continuing basis be financed or recovered primarily through user charges; or, (b) where the
governing body has decided that periodic determination of revenues earned, expenses incurred,
and /or net income is appropriate for capital maintenance, public policy, management control,
accountability, or other put
FIDUCIARY FUNDS
ARencv 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 fitnd type operations. They are assets of the City as a whole and
not of individual lands.
General Lone -Tenn 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.
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CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
C. BASIS OF ACCOUNTING
The accounting and reporting treatment applied to a fund is determined by its measurement focus. All
governmental funds are accounted for on a current financial resources measurement focus. This
means that only current assets and current liabilities are generally included on their balance sheets.
Governmental fund operating statements present increases (revenues and other financing sources) and
decreases (expenditures and other financing uses) in net current assets.
All Proprietary Funds are accounted for on a flow of economic resources measurement focus. This
means that all assets and all liabilities (whether current or noncurrent) associated with this activity are
included on their balance sheets. Their reported fund equity (net total assets) is segregated into
contributed capital and retained earnings components. Proprietary fund type operating statements
present increases (revenues) and decreases (expenses) in net total assets.
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 earnings 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 clue.
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 Reporrting 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.
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CI'T'Y OF OAK PARK HEIGHTS, MI1NNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
The City has reported as deferred revenues the amount of $1,218,340, which consists of the following:
Unearned grants $1,020
Property taxes receivable 20,174
Special assessments receivable 1,197,146
Total $1,218,340
D. BUDGETS
Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual
appropriated budgets are adopted for the General Fund. The City does not adopt a budget for the
Special Revenue Funds and accordingly the combined statement of revenue, expenditures and changes
in fund balance - budget and actual (Statement 3) excludes amounts relating to these unbudgeted
funds.
Budgeted amounts are reported as originally adopted, or as amended by the City Council. Individual
amendments were not material in relation to the original appropriations which were adjusted.
Budgeted expenditure appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not
employed by the City because it is at present not considered necessary to assure effective budgetary
control or to facilitate effective cash management.
E. LEGAL COMPLIANCE - BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Administrator submits to the City Council a proposed operating budget for the fiscal
year commencing the following January 1. The operating budget includes proposed
expenditures and the means of financing there.
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.
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CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
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.
I. 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
Finance $168,395 $169,083 $688
Animal control 1,150 1,655 505
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CI'T'Y OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
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.
Go PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December
(levy /assessment date) of each year for collection in the following year. The County is responsible for
billing and collecting all property taxes for itself, the City, the local School District and other taxing
authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that
date. Real property taxes are payable (by property owners) on May 15 and October 15 of each
calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each
year. These taxes are collected by the County and remitted to the City on or before July 7 and
December 2 of the same year. Delinquent collections for November and December are received the
following January. The City has no ability to enforce payment of property taxes by property owners.
The County possesses this authority.
The City recognizes property tax revenue when it becomes both measurable and available to finance
expenditures of the current period. In practice, current and delinquent taxes and State credits received
by the City in July, December and January are recognized as revenue for the Current year. Taxes
collected by the County by December 31 (remitted to the City the following January) and taxes and
credits not received at the year end are classified as delinquent and due from County taxes receivable.
The portion of delinquent taxes not collected by the City in January is fully offset by deferred revenue
because it is not available to finance current expenditures.
The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal
Disparities Formula) per State Statute 473F. This statute provides a means of spreading a portion of
the taxable valuation of commercial /industrial real property to various taxing authorities within the
defined metropolitan area. The valuation "shared" is a portion of commercial /industrial property
valuation growth since 1971. Property taxes paid to the City through this formula for 2002 and 2001
totaled $70,262 and $78,785, respectively. Receipt of property taxes from this "fiscal disparities pool"
does not increase or decrease total tax revenue.
20
CITE' OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
H. MARKET VALUE HOMESTEAD CREDIT
Property taxes on residential and agricultural homestead property (as defined by State Statutes) are
partially reduced by market value homestead credit (MVHC). This credit is paid to the City by the
State in lieu of taxes levied against homestead property. The State remits this credit through
installments each year. The credit is recognized as revenue by the City at the time of collection.
I, SPECIAL. ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of
special assessment improvement projects in accordance with State Statutes. These assessments are
collectible by the City over a tern 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. Proceeds of sales from tax forfeit properties are allocated first to the County's costs of
administering all tax forfeit properties. Generally, the City will collect the full amount of its special
assessments not adjusted by City Council or court action. Pursuant to State Statutes, a property shall
be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal
recreational land in which event the property is subject to such sale after five years.
J. FIXED ASSE'T'S
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
CITY OF OAK PAT HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
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 2001 or 2002.
Igo COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate eat 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 find
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. Vested or accumulated vacation leave and
other benefit amounts of proprietary funds are recorded as an expense and liability of those fiords as
the benefits accrue to employees.
22
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
L. LONG -TERM OBLIGATIONTS
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 find equity not
appropriable for expenditure or legally segregated for a specific fixture use. Designated fund balances
represent tentative plans for fixture use of financial resources.
N. INTERFUND TRANSACTIONTS
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 find and as
reductions of expenditures /expenses in the fund that is reimbursed.
All other interfnd 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 interfind 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, 2002
Sam
Note 2 DEPOSIT'S AND INVESTMENTS
A. DEPOSIT'S
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, 2002 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. $5,852,676 $5,740,917
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. 98,545 98,545
Totals $5,951,221 $5,839,462
De 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
CITE' OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
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, 2002 were:
Carrying
Custod Credit Risk category Amount
Securities Type 1 2 3 (at Fair Value)
U.S. Government and Agency Securities $600,000 $ - $ - $600,000
Investments not subject to credit risk categorization:
4M Fund and money market 209,623
Total investment 809,623
Deposits 5,839,462
Total deposits and investments 6,649,085
Change funds 1 100
Total $6,649,185
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
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
Note 3 F IXED ASSETS
A summary of changes in general fixed assets is as follows:
Balance Balance
1/1/2002 Additions Deletions Adjustments 12/31/2002
Land $482,859 $720,831 $ - $ - $1,203,690
Land improvements 326,601 173,000 - 499,601
Buildings and structures 1,165,981 - - 1,165,981
Machinery and equipment 503,673 23,387 22,360 (125,674) 379,026
Furniture and fixtures 336,505 9,093 254 (108,010) 237,334
Totals $2,815,619 $926,311 $22,614 ($233,684) $3,485,632
The adjustments to general fixed assets represent a change in accounting principal. Effective January 1, 2002,
the City of Oak Park Heights adopted a new fixed asset policy which raised their capitalization threshold to
$5,000. This change was made to conform with GFOA's recornrnended practice. The result of this change was
a reduction in general fixed assets of $233,684. The change in capitalization was applied retroactively to the
general fixed asset account group and prospectively to the enterprise fiord fixed assets.
A summary of Enterprise Fluid fixed assets at December 31, 2002 is as follows:
Enterprise
Land $60,000
Buildings and structures 1,267,723
Machinery and equipment 196,869
Distribution and collection systems 6,403,368
Total 7,927,960
Less: allowance for depreciation (2,142,680)
Net fixed assets $5,785,280
26
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
Note 4 CITE' INDEBTEDNESS
The following is a schedule of changes in City indebtedness for the year ended December 31, 2002:
Balance Balance
01/01/02 Additions Deletions 12/31/02
General Long -Tenn Debt Account Group:
Bonded debt:
General obligation $615,000 $510,000 $615,000 $510,000
Special assessment bonds 2,040,000 - 280,000 1,760,000
Compensated absences 132,476 21,580 - 154,056
Total general long -tern debt 2,787,476 531,580 895,000 2,424,056
Proprietary fiords:
Compensated absences 35,340 2,027 - 37,367
Totals $2,822,816 $533,607 $895,000 $2,461,423
All long -term bonded indebtedness outstanding at December 31, 2002 is backed by the full faith and credit of
the City, including special assessment bond issues. Delinquent assessments receivable at December 31, 2002
totaled $6,267.
The annual requirement to amortize all debt outstanding at December 31, 2002 including interest payments of
$402,849 is as follows:
Year General
Ending Obligation
December 31, Bonds
2003 $490,581
2004 468,336
2005 451,710
2006 234,535
2007 162,687
2008 -2013 865,000
Total $2,672,849
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, 2002
Long -term debt at December 31, 2002 is composed of the following:
Final Authorized
Issue Maturity Interest And Outstanding
Date Date Rate Issued 12/31/02
General Long -Term Debt:
General obligation bonds:
G.O. Refunding Bonds of 2002 11/01/02 12/01/06 2.19 $510,000 $510,000
Special assessment bonds:
G.O. Improvement Bonds of 1998 10/01/98 12/01/13 4.19 1,990,000 1,400,000
G.O. Refunding Bonds o1`2001 11/01/01 12/01/05 2.98 490,000 360,000
Compensated absences payable 154,056
Total general long -term debt $2,424,056
Current Refunding — On November 1, 2002, the City issued the $510,000 General Obligation Refunding
Bonds of 2002 with an average interest rate of 2.19% to refired the City's General Obligation Crossover
Refunding Bonds of 1993 with an average remaining interest rate of 4.71 %. The advance refunding was
undertaken to reduce debt payments over the next four years by $17,591.
28
CITY OIL OAK PARK HEIGHTS, MINNESO'T'A
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
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 2001 and 2002 is computed as follows:
December 31,
2002 2001
Market value (for pay 2002 and 2001) $349,905,800 $324,581,100
Debt limit percentage 2.00% 2.00%
Debt limit 6,998,116 6,491,622
Amount of debt applicable to debt limit:
Total bonded debt 2,270,000 2,655,000
Less:
Non applicable debt:
Revenue bonds (510,000) (615,000)
Special assessment bonds (1,760,000) (2,040,000)
Total amount of debt applicable to debt limit 0 0
Legal debt margin $6,998,116 $6,491
Note 6 PENSION PLANS.
A. PLAN DESCRIPTION
All full -time and certain part -time employees of the City are covered by defined benefit plans administered
by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public
Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF) which are
cost - sharing, multiple - employer retirement plans. These plans are established and administered in
accordance with Minnesota Statute, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. All new members must participate in the
Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by
statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by State Statute, and vest after three years of
credited service. The defined retirement benefits are based on a member's highest average salary for any
five successive years of allowable service, age, and years of credit at termination of service.
29
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
The benefit provisions stated in the previous paragraphs of this section are current provisions and
apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not
receiving them yet are bound by the provisions in effect at the time they last terminated their public
service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA, 60
Empire Drive #200, St. Paul, Minnesota, 55103 -2088 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 9.10% and 5.10 %, respectively, of their annual
covered salary. PEPFF members are required to contribute 6.20% of their annual covered salary. The
City is required to contribute the following percentages of annual covered payroll: 1 1.78% for Basic
Plan PERF members, 5.53% 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,
2002, 2001 and 2000 were $38,971, $33,561 and $31,344, respectively. The City's contributions to
the Public Employees Police and Fire Fund for the years ending December 31, 2002, 2001 and 2000
were $54,554, $52,132 and $49,656, respectively. The City's contributions were equal to the
contractually required contributions for each year as set by state statute.
Note 7 RECONCILIATION OF CONTRIBUTED CAPITAL.
Changes to contributed capital during the year are as follows:
Depreciation
Beginning Capital on Contributed Ending
Balance Contributions Assets Balance
Water $2,880,080 $ - $75,603 $2,804,477
Sewer 2,666,804 - 70,344 2,596,460
Total $5,546,884 $0 $145,947 $5,400,937
In accordance with GASB Statement No. 33, the City records capital contributions as nonoperating revenue.
Reclassification of prior year's financials for amounts recorded as contributed capital within fund equity is not
required under GASB Statement No. 33. Capital contributions were $147,920 for the year ended December 31,
2002.
30
CITY OF OAK PARIS HEIGHTS, MINNESO'T'A
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
Note 8 DEFICIT FUND BALANCES /RETAINED EARNINGS
The following funds had a fund deficit at December 31, 2002:
Amount
Capital Project:
Central Business District 190
Note 9 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.
Bo 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, 2002.
Ca TAX INCREMENT DISTRICTS
The City's tax increment districts are subject to review by the State of Minnesota Office of the State
Auditor (OSA). The City decertified an economic development district, "St. Croix Mall Tax
Increment District," during 1999. Any disallowed claims or misuse of tax increments could become a
liability of the applicable field. Management has indicated that they are not aware of any instances of
noncompliance which would have a material effect on the financial statements.
Note 10 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, 2002 totaled $186,000.
31
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
Nate ll DESIGNATIONS AND RESERVATIONS OF FUND EQUITY
At December 31, 2002 and 2001 the City had designated and reserved portions of its various fund equities
through legal restriction and City Council authorization. Major fiend equity appropriations at December 31,
2002 and 2001 are shown on the various balance sheets as segregations of the fund equity. A summary of such
designations is as follows:
December 31,
2002 2001
General Fluid:
Designated for cash flow $973,000 $956,000
Designated for contingent employee benefit 122,365 104,16 t
Designated for general contingency 233,864 112,957
Special Revenue Funds:
Designated for special revenue programs 79,342 65,851
Debt Service Funds:
Reserved for debt service 588,131 629,619
Capital Project Funds:
Designated for capital improvements 4,367,526 3,936,057
Designated for committed contracts 7,098 19,961
Enterprise Fund:
Reserved for debt service reserve 200,000 200,000
Totals $6,571,326 $6,024,606
32
CITE' OIL OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
Note 12 COMMITMENTS
Construction commitments at December 31, 2002 were composed of the following:
Expended Remaining
Contract as of Contract
Description Authorized 12/31/02 Commitment
Oak Park Station Phase I $102,543 $101,361 $1,182
60th Street Sanitary Sewer Improvements 46,806 39,708 7,098
Note 13 MAJOR TAXPAYER
The City has one major taxpayer, Xcel Energy. The total tax capacity value for this taxpayer represented
approximately 30% of the City's total tax capacity value for taxes payable in 2002.
Note 14 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 irmnaterial 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. The City does not have a
deductible or yearly maximum on this insurance.
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.
33
CITY OF DAIS PARK HEIGHTS, [MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
Note 15 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, 2002, there were three series of Industrial Revenue Bonds outstanding. The principal
amount payable at December 31, 2002 was $29,985,000.
34
COMBINING, INDIVIDUAL FUND
AND ACCOUNT GROUP
FINANCIAL S'TATEMEN'TS
35
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36
CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL FUND Statement 6
BALANCE SHEET
December 31, 2002
With Comparative Amounts For December 31, 2001
December 31,
Assets 2002 2001
Cash and investments $1,321,714 $1,141,909
Accounts receivable 7,824 17,437
Accounts receivable - certified 18,621 17,874
Due from other governmental units 31,560 28,458
Taxes receivable:
Delinquent 19,545 23,267
Due from County 8,300 10,198
Total assets $1,407,564 $1,239,143
Liabilities and Fund Balance
Liabilities:
Accounts payable $35,153 $35,123
Salaries payable 867 1,563
Due to other governmental units 21,750 5,052
Deferred revenue 20,565 24,287
Total liabilities 78,335 66,025
Fund balance:
Unreserved:
Designated for cash flow 973,000 956,000
Designated for contingent employee benefit 122,365 104,161
Designated for general contingency 233,864 112,957
Total fund balance 1,329,229 1,173,118
Total liabilities and fund balance $1,407,56 $1,239,143
37
CITE' OF OAK PARK HEIGHTS, MINNESOTA
GENERAL FUND Statement 7
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 1 of 6
IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2002
With Comparative Actual Amounts For The Year Ended December 31, 2001
2002
Favorable
(Unfavorable) 2001
Budget Actual Variance Actual
Revenue:
General property taxes:
Current and delinquent $1,752,244 $1,730,944 ($21,300) $1,524,288
Payment in lieu of taxes 23,000 16,431. (6,569) (2,223)
Other taxes - 1,259 1,259 2,235
Total general property taxes 1,775,244 1,748,634 (26,610) 1,_5
Intergovernmental:
Federal:
Safe and sober 5,500 4,140 (1,360) 19,499
Underage compliance checks 1,500 1,425 (75) 2,160
State:
Market value homestead credit 97,935 97,935 - -
HACA - - - 79,603
Local government aid 4,881 4,881 4,878
Police aid 52,132 52,132 - 49,613
Police training aid 3,393 3,393 - 4,037
PERA rate increase aid 2,040 2,040 - 2,040
Releaf - - - 2,121
County:
Recycling grant 14,700 14,250 (450) 14,691
Gravel tax allocation 900 662 (238) 949
Total intergovernmental 182,981 180,858 (2,123) 179,591
Licenses and permits t79,010 1 83,596 4,58 213,651
Charges for services:
General government 15,500 17,706 2,206 30,097
Development charge 3,000 6,000 3,000 -
Refuse charge - Junker settlement 28,400 28,460 60 28,422
Inspections - City of Bayport 34,000 44,064 10,064 43,047
Administrative - Enterprise Fund 89,780 89,780 - 95,300
Administrative - TIF - - - 452
Administrative - Construction 2,083 2,083 - -
Total charges for services 172,763 188,093 15,330 197,318
Fines and forfeits 66,400 63,211 (3,189) 63,655
Earnings on investments 30,000 32,052 2,052 48,559
Refunds and reimbursements 61,500 69,074 7,574 68,154
Donations and contributions - 100 100 1,200
Sale of property 10,200 10,335 135 1,448
Total revenue 2,478,098 2,475,953 (2,145) 2,297,876
38
CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL FUND Statement 7
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 2 of 6
IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2002
With Comparative Actual Amounts For The Year Ended December 31, 2001
2002
Favorable
(Unfavorable) 2001
Budget Actual Variance Actual
Expenditures:
General government:
Mayor and council:
Current:
Personal services $44,390 $38,288 $6,102 $35,957
Materials and supplies 1,000 785 215 1,572
Contractual services 23,710 22,516 1,194 21,293
Total mayor and council 69,100 61,589 7,511 58,822
City administrator:
Current:
Personal services 154,940 149,656 5,284 195,961
Materials and supplies 3,000 1,442 1,558 2,944
Contractual services 14,035 10,181 3,854 17,838
Total current 171,975 161,279 10,696 216,743
Capital outlay - - - 231
Total City administrator 171,975 161,279 10,696 216,974
Legal:
Current:
Personal services 27,500 22,345 5,155 36,221
General management and building:
Current:
Personal services - - - 639
Materials and supplies 8,335 6,722 1,613 7,590
Contractual services 68,835 56,861 11,974 67,685
Total current 77,170 63,583 13,587 75,914
Capital outlay - - - 4,768
Total general management and building 77,170 63,583 13,587 80,682
Elections:
Current:
Personal services 7,000 4,881 2,119
Materials and supplies 500 389 111 110
Contractual services 500 250 250
Total elections 8,000 5,520 2,480 110
Finance:
Current:
Personal services 162,160 164,301 (2,141) 151,340
Materials and supplies 2,320 1,632 688 1,823
Contractual services 3,915 3,150 765 3,636
Total current 168,395 169,083 (688) 156,799
Capital outlay - - - 3,659
Total finance 168,395 169,083 (688)_ 160,458
39
CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL FUND Statement 7
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 3 of 6
IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2002
With Comparative Actual Amounts For The Year Ended December 31, 2001
2002
Favorable
(Unfavorable) 2001
Budget Actual Variance Actual
Expenditures: (continued)
General government: (continued)
Computer system:
Current:
Materials and supplies $1,000 $1,941 ($941) $375
Contractual services 21,300 9,965 11,335 13,361
Total current 22,300 11906 10,394 13,736
Capital outlay - 5,865 (5,865) -
Total computer system 22,300 17,771 4,529 13,736
Audit: -
Current:
Personal services 13,000 12,044 956 12,361
Insurance:
Current:
Contractual services 207,340 202,147 5,193_ 219,151
Assessing:
Current:
Personal services 18,000 17,386 614 18,_070
Planning and zoning:
Current:
Personal services 26,300 27,710 (1,410) 56,418
Materials and supplies 200 73 127 2
Contractual services 3,000 1,573 1,427 2,299
Total planning and zoning 29,500 29,356 144 58,719
Engineering:
Current:
Personal services 20,000 19,860 140 18,541
General contingency:
Current:
Contractual services 8,935 3,356 5,579 34,435
Total general government 841,215 785,319 55,896 928,280
Public safety:
Police department:
Current:
Personal services 752,985 738,955 14,030 714,169
Materials and supplies 24,400 22,163 2,237 30,342
Contractual services 41,100 41,129 (29) 40,384
Total current 818,485 802,247 16,238 784,895
Capital outlay - - - 1,254
Total police department 818,485 802,247 16,238 786,149
40
CITE' OF OAK PARK HEIGHTS, MINNESOTA
GENERAL FUND Statement 7
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 4 of 6
IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2002
With Comparative Ac tual Amounts For The Year Ended December 31, 2001
2002
Favorable
(Unfavorable) 2001
Budget Actual Variance Actual
Expenditures: (continued)
Building inspections:
Current:
Personal services $101,725 $99,776 $1,949 $89,536
Materials and supplies 2,270 1,665 605 2,591
Contractual services 7,025 5,949 1,076 7,185
Total building inspections 111,020 107,390 3,630 99,312
Fire protection:
Current:
Contractual services 91,890_ 87,847 4,043 79,930
Animal control:
Current:
Materials and supplies 150 66 84 72
Contractual services 1,000 1,589 (589) 1,791
Total animal control 1,150 1,655 (505) 1,863
Total public safety 1,022,545 999,139 23,406 967,254
Public works:
Street maintenance:
Current:
Personal services 19,315 16,674 2,641 20,731
Materials and supplies 5,400 2,445 2,955 2,783
Contractual services 12,460 9,358 3,102 14,124
Total current 37,175 28,477 8,698 37,638
Capital outlay - __ - 5
Total street maintenance 37,175 28,477 8,698 37,643
Snow removal:
Current:
Personal services - - 3,345
Materials and supplies 3,500 1,098 2,402 3,460
Contractual services 65,000 35,761 29,239 53,391
Total snow removal 68,500 36,859 31,641 60,196
Street lighting:
Current:
Contractual services 45,000 42,153 2,847 43,121 r
41
CITY OF OAK PARK IIEIGHTS, MINNESOTA
GENERAL FUND Statement 7
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 5 of 6
IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2002
With Comparative Actual Amounts For The Year Ended December 31, 2001
2002
Favorable
(Unfavorable) 2001
Budget Actual Variance Actual
Expenditures: (continued)
Arborist:
Current:
Personal services $13,600 $11,604 $1,996 $10,682
Contractual services 175 154 21 2
Materials and supplies 150 90 60 118
Total arborist 13,925 11,848 2,077 10,802
Tree removal and planting:
Current:
Materials and supplies - - - 36
Contractual services 15,000 15,000 - 16,
Total tree removal and planting 15,000 15,000 0 16,254
Total public works 179,600 134,337 45,263 168,016
Recreation:
Parks, playgrounds and rinks:
Current:
Personal services 44,645 45,466 (821) 57,249
Materials and supplies 3,620 4,070 (450) 4,717
Contractual services 41,705 38,396 3,309 47,515
Total current 89,970 87,932 2,038 109,481
Capital outlay - - 5
Total recreation 89,970 87,932 2,038 109,486
Community development:
Current:
Personal services 103,210 101,568 1,642 94,809
Contractual services 9,550 8,481 1,069 9,711
Materials and supplies 2,725 2,191 534 1,436
Total current 115,485 112,240 3,245 105,956
Capital outlay - - - 581
Total community development 115,485 112,240 3,245 106,537
Total expenditures 2,248,815 2,118,967 129,848 2,279,573
Revenue over expenditures 229,283 356,986 127,703 18,303
42
CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL FUND Statement 7
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 6 of 6
IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2002
With Comparative Actual Amounts For The Year Ended December 31, 2001
2002
Favorable
(Unfavorable) 2001
Budget Actual Variance Actual
Other financing sources (uses):
Operating transfers to Capital Project Fund ($112,375) ($112,375) $ - ($42,286)
Operating transfers to Enterprise Fund (88,500) (88,500) - (83,000)
Total other financing sources (uses) (200,875) (200,875) 0 (125,286)
Net increase (decrease) in fund balance $28,408 156,111 $127,703 (106,983)
Fund balance - January 1 1,173,118 1,280,101
Fund balance - December 31 $1,329,229 $1,173,118
43
CITY OF GAIL PARK HEIGHTS, MINNESOTA
SPECIAL REVENUE FUNDS Statement 8
COMBINING BALANCE SHEET
December 31, 2002
With Comparative Totals For December 31, 2001
Forfeiture
and Economic Totals
Seizure Development 2002 2001
Assets
Cash and investments $29,200 $50,142 $79,342 $65,670
Accounts receivable - - - 181
Total assets $29,200 $50,142 $79,342 $65,851
Liabilities and Fund Balance
Liabilities $ _ $ _ $ _ $
Fund balance:
Unreserved:
Designated for special revenue programs 29,200 50,142 79,342 65,551
Total liabilities and fund balance $29,200 $50,142 $7 9,342 $65,1351
44
CITY OF OAK PARK HEIGHTS, MINNESOTA
SPECIAL REVENUE FUNDS Statement 9
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
For The Year Ended December 31, 2002
With Comparative Totals For The Year Ended December 31, 2001
Forfeiture
and Economic Totals
Seizure Development _ 2002 2001
Revenue:
hrtergovernmental $7,170 $ - $7,170 $ -
Earnings on investments 945 1,993 2,938 4,784
Refunds and reimbursements 1,150 - 1,150 181
Confiscated property 13,595 - 13,595 4,529
Sale of municipal property - - - 1 650
Total revenue 22,860 1,993 24,853 10,144
Expenditures:
Public safety:
Current:
Materials and supplies 1,218 - 1,218 687
Contractual services 929 - 929 1,167
Capital outlay 8,680 - 8,680 12,741
Community development:
Current:
Contractual services - 535 535 400
Interfund loan interest - - - 20,000
Total expenditures 10,827 535 11,362 34,995
Revenue over (under) expenditures 12,033 1,458 13,491 (24,851)
Other Financing sources (uses):
Operating transfer from Capital Project Fund - - - 260,000
Operating transfer to Capital Project Fund - - - (11,113)
Total other financing sources (uses) 0 0 0 248,887
Net increase in fund balance 12,033 1,458 13,491 224,036
Fund balance - January 1 17,167 48,684 65,851 (158,185)
Fund balance - December 31 $29,200 $50, 142 $79,342 $65,851
45
CITE' OF OAK PARK HEIGHTS, MINNESOTA
DEBT SERVICE FUNDS Statement 10
COMBINING BALANCE SHEET
December 31, 2002
With Comparative Totals For December 31, 2001
G.O. G.O.
Crossover Improvement
Refunding Bonds
Bonds of of 1995/ G.O
1993 / Refunding Refunding Improvement
Bonds Bonds Bonds Totals
of 2002 of 2001 of 1998 2002 2001
Assets
Cash and investments $333,235 $146,009 $106,060 $585,304 $623,969
Taxes receivable:
Delinquent - 609 - 609 905
Due from County - 253 - 253 393
Special asscssments:
Delinquent - 333 5,934 6,267 197
Deferred 86,352 849,395 935,747 1,042,985
Due from County 900 2,924 3,824 7,817
Total assets $333 $234,456 $964,313 $1,532,004 $1,676,266
Liabilities and Fund Balance
Liabilities:
Accounts payable $1,250 $ - $ - $1,250 $2,560
Deferred revenue - 87,294 855,329 942,623 1,044,087
Total liabilities 1,250 87,294 855,329 943,873 1,046,647
Fund balance:
Reserved for debt service 331,985 147,162 108,984 588,131 629,619
Total liabilities and fund balance $333,235 $234,456 $9 $1,532,004 $1,676,266
46
CITY OF OAK PARK HEIGHTS, MINNESOTA
DEBT SERVICE FUNDS Statement 11
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2002
With Comparative Totals For The Year Ended December 31, 2001
G.O. G.O
Crossover Improvement
Refunding Bonds
Bonds of of 1995/ G.O.
1993 / Refunding Refunding Improvement
Bonds Bonds Bonds Totals
of 2002 of 2001 of 1998 2002 2001
Revenue:
General property taxes:
Current and delinquent $ - $53,812 $ - $53,812 $59,274
Special assessments:
Current and delinquent - 38,798 120,060 158,858 194,968
Prepayments - 5,555 - 5,555 120,673
Penalties and interest - 156 313 469 2,413
Intergovernmental - 3,050 - 3,050 -
Earnings on investments 13,314 8,130 4,668 26,112 33,643
Total revenue 13,314 109,501 125,041 247,856 410,971
Expenditures:
Debt service:
Principal 615,000 130,000 150,000 895,000 850,000
Interest 35,275 " 15,180 64,163 114,618 133,352
Paying agent fees 3,810 - - 3,810 4,052
Total expenditures 654,085 145,180 214,163 1,013,428 987,404
Revenue over (under) expenditures (640,771) (35,679) (89,122) (765,572) (576,433)
Other financing sources:
Bond proceeds - refunding bonds 510,000 - - 510,000 483,779
Operating transfer from Capital Project Fund 145,000 - 75,000 220,000 195,000
Discount on debt issued (7,650) - - (7,650) -
Total other financing sources 647,350 0 75,000 722,350 678,779
Net increase (decrease) in fund balance 6,579 (35,679) (14,122) (43,222) 102,346
Fund balance - January 1 325,406 182,841 121,372 629,619 527,273
Residual equity transfer - - 1,734 1,734 -
Fund balance - December 31 $331,985 $147,162 $108,984 $588,131 $629,619
47
CITY OF OAK PARK HEIGHTS, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
December 31, 2002
With Comparative Totals For December 31, 2001
Budgeted
Projects
Capital and
Revolving Equipment Superamerica Park Street Renewal and
Fund Revolving Valvoline Oil Development Reconstruction Replacement
Assets
Cash and investments $345,067 $178,939 $11,772 $329,474 $382,430 $2,039,446
Accounts receivable - other - - - - -
Due from other governmental units -
Due from developers -
Taxes receivable:
Delinquent 20
Due from County - _
Special assessments receivable:
Deferred 84,707 - - -
Total assets $429,794 $178,939 $11,772 $329,474 $382,430 $2,039,446
Liabilities and Fund Balance
Liabilities:
Cash overdraft $ $ $ - $ $ $
Escrow deposits payable 9,347
Accounts payable 437 4,684 -
Contracts payable - _
Deferred revenue 84,727 - _
Total liabilities 85,164 4,684 9,347 0 0 0
Fund balance:
Unreserved:
Designated for capital improvement 344,630 174,255 2,425 329,474 382,430 2,039,446
Designated for committed contracts - - - - _ _
Undesignated - - - _ - _
Total Rind balance 344,630 174,255 2,425 329,474 382,430 2,039,446
Total liabilities and fund balance $429,794 $178,939 $11,772 $329,474 $382,430 $2,039,446
48
Statement 12
AAE
Central Brekke Oak Park Sanitary Storm
Business Nark Kern Boutwells Station Sewer Water Sewer Totals
District Memorial Center Landing Phase I Connection Connection Connection 2002 2001
$ $216 $4,662 $ $ $309,584 $145,243 $644,246 $4,391,079 $4,094,137
- _ 250
1,125 - _ 1,125 1,125
- 350 5,581 - 5,931 29,994
- _ 20 27
4
- - - - - 34,474 60,005 75,946 255,132 162,999
$1,125 $216 $4,662 $350 $5,581 $344,058 $205,248 $720,192 $4,653,287 a $4,288,536
$1,315 $ - $ - $287 $ - $ - $ - $ - $1,602 $19,540
9,347 9,347
2 63 513 - - 5,699 133,497
5,068 1,985 - - 7,053 7,966
- 34,474 60,005 75,946 255,152 163,026
1,315 0 2 350 5,581 36,459 60,005 75,946 278,853 333,376
- 216 4,660 - 300,501 145,243 644,246 4,367,526 3,936,057
- - - 7,098 - - 7,098 19,961
(190) - - - - - - - (190) (858)
(190) 216 4,660 0 0 307,599 145,243 644,246 4,374,434 3,955,160
$1,125 $216 $4,662 $350 $5,581 $344,058 $205,248 $720,192 $4,653,287 $4,288,536
49
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s0
CITY OF OAK PARK HEIGHTS, MINNESOTA
CAPITAL PROJECT FUNDS Statement 13
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND Page I of 2
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2002
With Comparative Totals For The Year Ended December 31, 2001
Budgeted
Projects
Capital and
Revolving Equipment Superamerica/ Park Street
Fund Revolving Valvoline Oil Development Reconstruction
Revenue:
General property taxes -
current and delinquent $9 $ - $ _ $ - $ -
Special assessments:
Current and delinquent 88,957 - - - -
Intergovernmental - - - -
Earnings on investments 11,242 5,953 465 13,131 15,113
Connection charges - -- - -
Interfund loan interest - _ _ - -
Refunds and reimbursements - 14,888 - -
Donations and contributions - 93,700 - -
Total revenue 100,208 114,541 465 13,131 15,113
Expenditures:
Public works:
Materials and supplies - 5,606 - 4,063 -
Contractual services 13,874 61,879 - -
Capital outlay - 40,394 - - -
Developer assistance -- - - - -
Administrative charge - - - -
Construction costs - - - -
Total expenditures 13,874 107,879 0 4,063 0
Revenue over (under) expenditures 86,334 6,662 465 9,068 1 5,11 3
Other financing sources (uses):
Operating transfers from General Fund - 112,375 - - -
Operating transfers from Special Revenue Fund - -
Operating transfers from Capital Project Fluid - - - - -
Operating transfers from Enterprise Fund - 7,600 - - -
Operating transfers to Special Revenue Fund - - - - -
Operating transfers to Debt Service Fund - - - -
Operating transfers to Capital Project Fund
Total financing sources (uses) 0 119,975 0 0 0
Net increase (decrease) in fund balance 86,334 126,637 465 9,068 15,113
Fund balance - January 1 258,296 47,618 1,960 320,406 367,317
Residual equity transfer - - - -
Fund balance (deficit) - December 31 $344,630 $174,255 $2,425 $329,474 $382,430
51
CITY OF OAK PARK HEIGHTS, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2002
With Comparative Totals For The Year Ended December 31, 2001
AAE
Central Brekke
Deep Renewal and Business Park Kern
Well #3 Replacement District Memorial Center
Revenue:
General property taxes -
Current and delinquent $ - $ _ $ _ $ _ $ _
Special assessments:
Current and delinquent - _
Intergovernmental - _
Earnings on investments 1 75,241 - 20 201
Connection charges - _
Interfund loan interest -
Refunds and reimbursements - - - - 9,910
Donations and contributions - _
'total revenue 1 75,241 0 20 10,111
Expenditures:
Public works:
Materials and supplies - _ _
Contractual services (667) 450 - -
Capital outlay - 11,953 - 628
Developer assistance -
Administrative charge -
Construction costs - - - - 13,711 .
Total expenditures (667) 12,403 0 628 13,711
Revenue over (under) expenditures 668 62,838 0 (608) (3,600)
Other financing sources (uses):
Operating transfers from General Fund - - _ _ _
Operating transfers from Special Revenue Fund -
Operating transfers from Capital Project Fund - -
Operating transfers from Enterprise Fund - 145,947
Operating transfers to Special Revenue Fund - -
Operating transfers to Debt Service Fund -
Operating transfers to Capital Project Fund - -
Total financing sources (uses) 0 145,947 0 0 0
Net increase (decrease) in fund balance 668 208,785 0 (608) (3,600)
Fund balance - January 1 (668) 1,830,661 (190) 824 8,260
Residual equity transfer - _ _
Fund balance (deficit) - December 31 $0 $2,039,446 ($ 190) $216 $4,660
52
Statement 13
Page 2 of 2
AAE
58th Street Oak Park Sanitary Storm
Improvement Boutwells Station Sewer Water Sewer Totals
Phase III Landing Phase I Connection Connection Connection 2002 2001
$ - $ - $ - $ - $ - $ - $9 $26
88,957 121,034
_ 1,753
161 - - 15,039 9,188 24,307 170,062 230,970
- - 40,432 70,376 89,072 199,880 72,602
- _ _ - - 20,000
- 4,317 135,143 - - - 164,258 84,505
_ _ _ - - - 93,700 500
161 4,317 135,143 55,471 79,564 113,379 716,866 531,390
- - - - - 9,669 1,154
75,536 75,522
52,975 35,745
- 95,100
- 452
2,628 4,317 135,143 47,801 203,600 177,119
2,628 4,317 135,143 47,801 0 0 341,780 385,092
(2,467) 0 0 7,670 79,564 113,379 375,086 146,298
112,375 42,286
_ It,113
- 25,966
153,547 150,676
(260,000)
- - (57,875) (138,125) (24,000) (220,000) (195,000)
- (25,966)
0 0 0 (57,875) (138,125) (24,000) 45,922 (250,925)
(2,467) 0 0 (50,205) (58,561) 89,379 421,008 (104,627)
4,201 - - 357,804 203,804 554,867 3,955,160 4,059,787
(1,734) - - - - - (1,734) -
$0 $0 $0 $307,599 $145,243 $644,246 $4,374,434 $3,955,160
53
CITE' OF OAK PARK HEIGHTS, MINNESOTA
ENTERPRISE FUNDS Statement 14
BALANCE SHEET
December 31, 2002
With Comparative Amounts for December 31, 2001
Assets
2002 200t
Current assets:
Cash and cash equivalents $407,153 $425,024
Accounts receivable:
Customers 153,107 129,005
Certified to County 13,445 10,705
Other 118 631
Prepaid items 26,173 23,699
Total current assets 599,996 5 89,064
Fixed assets:
Land 60,000 60,000
Buildings and structures 1,267,723 1,255,770
Machinery and equipment 196,869 195,378
Distribution and collection system 6,403,368 6,267,402
Total 7,927,960 7,778,550
Less: Allowance for depreciation (2,142,680) (1,982,890)
Net fixed assets 5,785,280 5,795,660
Total assets $6,385,276 $6,384,724
Liabilities and Fund Equity
Current liabilities:
Accounts payable $27,322 $21,380
Salaries payable 2,242 1,420
Due to other governmental units 7,824 2,979
Total current liabilities 37,388 25,779
Noncurrent liabilities:
Compensated absences payable 37,367 35,340
Total liabilities 74,755 61,119
Fund equity:
Contributions from property owners - net 5,400,937 5,546,885
Retained earnings:
Reserved for debt service reserve 200,000 200,000
Unreserved 709,584 576,720
Total fund equity 6,310,521 6,323,605
Total liabilities and fund equity $6,385,276 $6,384,724
54
CITY OF OAK PARK HEIGHTS, MINNESOTA
ENTERPRISE FUNDS Statement 15
COMBINING STATEMENT OF REVENUE, EXPENSES AND
CHANGES IN RETAINED EARNINGS
For The Year Ended December 31, 2002
With Comparative Totals For The Year Ended December 31, 2001
Water Sewer Storm Sewer Totals _
Operating Operating Sanitation Operating 2002 2001
Revenue:
Customer billings $310,116 $504,797 $98,030 $62,817 $975,760 $950,271
Penalties 4,538 6,771 - - 11,309 12,701
Plumbing permits 835 625 - 175 1,635 450
Meter sales 5,725 - - - 5,725 12,460
Charges for services 486 2,736 - - 3,222 4,387
Total operating revenue 321,700 514,929 98,030 621992 _ 997,651 980,269
Expenses:
Personal services 123,603 80,064 - 27,757 231,424 268,846
Contractual services 114,967 52,334 165,089 23,576 355,966 273,788
Refunds and reimbursements - - _ _ - 842
Recycling award - 606 - 606 535
MCES charges - 257,783 - - 257,783 243,670
Materials and supplies 6,387 2,435 - 1,065 9,887 8,118
Administrative and personnel charge 27,540 40,560 16,880 4,800 89,780 95,300
Depreciation:
On purchased assets 11,039 2,804 - - 13,843 13,172
On contributed assets 75,603 70,344 - - 145,947 135,276
Total operating expenses 359,139 506,324 182,575 57,198 1,105,236 1,039,547
Operating income (loss) ($37,439) $8,605 ($84,545) $5,794 (107,585) (59,278)
Nonoperating revenue (expenses):
Earnings on investments 18,941 29,598
Capital contributions 147,920 -
Loss on disposal of fixed assets (7,312) -
Total nonoperating revenue (expenses) 159,549 29,598
Net income (loss) before operating transfers 51,964 (29,680)
Other financing sources (uses):
Operating transfer from General Fund /f, 88,500 83,000
Operating transfer to Capital Project Funds (153,547) (150,676)
Total other financing sources (uses) (65,047) (67,676)
Net income (loss) (13,083) (97,356)
Other increases:
Credit arising from transfer of depreciation to contributions from property owners 145,947 135,276
Net increase in retained earnings 132,864 37,920
Retained earnings - January 1 776,720 738,800
Retained earnings - December 31 $909,584 $776,720
55
CITE' OF OAK PARK HEIGHTS, MINNESOTA
ENTERPRISE FUNDS
Statement 16
STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2002
With Comparative Amounts For The Year Ended December 31, 2001
2002 2001
Cash Glows from operating activities:
Operating income (loss) ($107,585) ($59,278
Adjustments to reconcile operating income to
net cash flows from operating activities:
Depreciation 159,790 148,448
Change in assets and liabilities:
Decrease (increase) in receivables (26,329) 151,757
Decrease (increase) in prepaid expenses (2,474) (2,455)
Increase (decrease) in payables 13,636 (177,762)
Net cash flows from operating activities 37,038 60,710
Cash flows from noncapital financing activities:
Operating transfers from other funds 88,500 83,000
Operating transfers to other funds (153,547) (150,676)
Net cash flows from noncapital financing activities (65,047) (67,676)
Cash flows from capital and related financing activities:
Acquisition of fixed assets (8,803) (21,651)
Cash (lows from investing activities:
Earnings on investments 18,941 29,598
Net increase (decrease) in cash and cash equivalents (17,871) 981
Cash and cash equivalents -- January 1 425,024 424,043
Cash and cash equivalents - December 31 $407,153 $425,024
Significant noncash investing, capital and financing activities:
During 2001 and 2002, fixed assets were contributed to the Enterprise Fund as follows:
2002_ 2001
Water Operating Fund $123,192 $177,042
Sewer Operating Fund 24,728 356,533
Total $147,920 $533,575
56
CITY OF OAK PARK HEIGHTS, MINNESOTA
AGENCY FUNDS Statement 17
COMBINING BALANCE SHEET
December 31, 2002
With Comparative Totals For December 31, 2001
Developer Developer
Deposit Escrow Investment Totals
Fund Fund Fund 2002 2001
Assets
Cash and investments $16,574 $14,000 $ - $30,574 $15,142
Accrued interest receivable - - 164,379 164,379 125,810
Due from developers 19,460 - - 19,460 16,264
Total assets $36,034 $14,000 $164,379 $214,413 $157,216
Liabilities
Cash overdraft $ - $ - $164,379 $164,379 $125,810
Escrow deposits payable - 14,000 - 14,000 11,000
Accounts payable 6,541 - - 6,541 6,592
Due to developers 29,493 - - 29,493 13,814
Total liabilities $36,034 $14,000 $164,379 $214,413 $157,216
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CITY OF OAK PARK HEIGHTS, MINNESOTA
AGENCY FUNDS Statement 18
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For The Year Ended December 31, 2002
Balance Balance
January 1, December 31,
2 Additions Deletions 2002
Developer Deposit Fund:
Assets:
Cash and investments $4,142 $12,432 $ - $16,574
Due from developers 16,264 19,460 16,264 19,460
Total assets $20,406 $31,8 $16,26 $36,034
Liabilities:
Accounts payable $6,592 $6,541 $6,592 $6,541
Due to developers 13,814 29,493 13,814 29,493
Total liabilities $20,406 $36,034 $20,406 $36,034
Developer Escrow Fund:
Assets:
Cash and investments $11,000 $14,000 $11,000 $14,000
Liabilities:
Escrow deposits payable $11,000 $14,000 $11,000 $14,000
Investment Fund:
Assets:
Accrued interest receivable $125,810 $164,37 $125,810 $164,379
Liabilities:
Cash overdraft $125,810 $164,3 $125,810 $164,379
Total A>4cncv:
Assets:
Cash and investments $15,142 $26,432 $11,000 $30,574
Accrued interest receivable 125,810 164,379 125,810 164,379
Due from developers 16,264 19,460_ 16,264 19,460
Total assets $157,216 $210,271 $153,074 $214,413
Liabilities:
Cash overdraft $125,810 $164,379 $125,810 $164,379
Escrow deposits payable 11,000 14,000 11,000 14,000
Accounts payable 6,592 6,541 6,592 6,541
Due to developers 13,814 29,493 13,814 29,493
Total liabilities $157,216 $214,413 $157,216 $214,413
58
CITY OF OAK PARK HEIGHTS, MINNESOTA
SCHEDULE OF GENERAL FIXED ASSETS Statement 19
For The Year Ended December 31, 2002
Balance Balance
January 1, December 31,
Description 2002 Additions Deletions Adjustments 2002
Land $482,859 $720,831 $ - $ - $1,203,690
Land improvements 326,601 173,000 - - 499,601
Buildings and structures 1,165,981 - - - 1,165,981
Machinery and equipment 503,673 23,387 (22,360) (125,674) 379,026
Furniture and fixtures 336,505 9,093 (254) (108,010) 237,334
Totals $2,815,619 $926,311 ($22,614) ($233,684) $3,485,632
59
CITY OF OAK PARK HEIGHTS, MINNESOTA
SCHEDULE OF GENERAL LONG -TERM DEBT
S$atClriCllt 20
December 31, 2002
With Comparative Amounts For December 31, 2001
2002 2001
Amount Available And To Be Provided For The
Retirement of Long -Term Debt
Bonds:
Amount available in Debt Service Funds $588,131 $629,619
Amount to be provided from future tax levies/
special assessment collections, and connection charges 1,713,560 2,025,381
Compensated absences:
Amount available in General Fund 122,365 132,476
Total available and to be provided $2,424,056 $2,787,476
General Long -Term Debt Payable
Bonds payable:
General Obligation Bonds:
G.O. Crossover Refunding Bonds of 1993 $ - $615,000
G.O. Refunding Bonds of 2002 510,000 -
Special Assessment Bonds:
G.O. Improvement Bonds of 1998 1,400,000 1,550,000
G.O. Refunding Bonds of 2001 360,000 490,000
Total bonds payable 2,270,000 2,655,000
Compensated absences payable 154,056 132,476
Total general long -term debt payable $2,424,056 $2,787,476
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SUPPLEMENTARY FINANCIAL INFORMATION
61
CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS Exhibit i
December 31, 2002
Final Net Bonds Principal Interest
Payment Interest Authorized Retired Outstanding Due Due
Date Due Rate Issued To Date At 12/31/02 In 2003 In 2003
Bonded indebtedness: mm
General debt:
G.O. Refunding Bonds of 2002 11/01/02 12/01/06 2.19% $510,000 $ - $510,000 $135,000 r $11,356
Special assessments bonds:
G.O. Improvement Bonds of 1998 10/01/98 12/01/13 4.19% 1,990,000 590,000 1,400,000 150,000 58,462
G.O. Refunding Bonds of 2001 11/01/01 12/01/05 2.98% 490,000 130,000 360,000 125,000 10,763
Total bonded indebtedness 2,990,000 720,000 2,270,000 410,000 80,581
Compensated absences payable - - 191,423 - -
Total City indebtedness $2,990,000 $720,000 $2,461,423 $410,000 $80,581
62
CITY OF OAK PARK HEIGHTS, MINNESOTA
REVENUE BONDS AND GENERAL DEBT BONDS Exhibit 2
SCHEDULE OF DEBT SERVICE PAYMENTS TO MATURITY
December 31, 2002
General Debt Bonds
General General General
Obligation Obligation Obligation
Refunding Improvement Refunding
Bonds of 2002 Bonds of 1998 Bonds of 2001 Total
Bonds payable $510,000 $1,400,000 $360,000 $2,270,000
Future interest payable 26,724 354,462 21 ,663 402,849
Totals $536,724 $1,754,462 $381,663 $2,672,849
Payments to maturity:
2003 $146,356 $208,462 $135,763 $490,581
2004 158,323 177,688 132,325 468,336
2005 165,323 172,812 113,575 451,710
2006 66,722 167,813 - 234,535
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 $536,724 $1,754,462 $381,663 $2,672,849
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CITY OF OAK PARK HEIGHTS, MINNESOTA
FUTURE SCHEDULED TAX LEVIES Exhibit 3
December 31, 2002
Year Of G.O. Refunding
Collection Bonds of 2001
2003 $62,000
2004 62,000
2005 62,000
Totals $186,000
64
CITY OF OAK PARK HEIGHTS, MINNESOTA
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Exhibit 4
2002/2003 2001/2002
Taxable valuations:
Real estate $5,895,692 $5,085,897
Personal property 78,851 77,543
Subtotal 5,974,543 5,163,440
Fiscal disparity:
Contribution (657,651) (611,097)
Distribution 253,076 221,368
Total $5,569,968 $4,773,711
Tax levy:
City -wide:
General revenue $1,931,003 $1,908,179
Debt service 62,000 59,400
Total tax levy $1,993,003 $1,967,579
Tax capacity rate:
City -wide:
General revenue 34.695% 40.495%
Debt service 1.104% 1.246%
Total 35.799% 41.741%
65
CITY OF OAK PARK HEIGHTS, MINNESOTA
SCHEDULE OF CONSTRUCTION COSTS Exhibit 5
December 31, 2002
Legal Expended
and Current Prior
Contractor Engineer Fiscal Other Total Year Years
Kern Center:
Business Center $831,502 $168,713 $21,090 $120,335 $1,141,640 $952 $1,140,688
55th Street 35,812 13,869 57 40 49,778 12,759 37,019
AAE - 58th Street - Phase III 730,687 142,835 10,261 106,504 990,287 2,628 987,659
AAE - BOntwells Landing 1,281,235 260,753 31,732 325 1,574,045 4,317 1,569,728
Oak Park Station Phase 1 101,361 32,925 612 245 135,143 135,143 -
60th Street Sanitary Sewer 39,708 7,900 193 - 47,801 47,801
Total - All Funds $3,020,305 $626,995 $63,945 $22 $3,938,694 $203,600 $3,735,094
66
STATISTICAL. SECTION
67
CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL AND SPECIAL REVENUE FUNDS Table I
EXPENDITURES BY FUNCTION
Years 1993 Through 2002
(UNAUDITED)
General Public Public Community Capital
Year Total Government Safety Works Sanitation Recreation Development Outlay
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
2000 2,113,555 786,886 915,814 170,408 - 86,800 121,056 32,591
2001 2,314,568 919,622 967,854 168,011 - 109,481 126,356 23,244
2002 2,130,329 779,454 1,001,286 134,337 - 87,932 112,775 14,545
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CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL AND SPECIAL REVENUE FUNDS Table 2
REVENUE BY SOURCE
Years 1993 Through 2002
(UNAUDITED)
Licenses Charges Fines Earnings
Inter- and for and on
Year Total Taxes governmental Permits Services Forfeits Investments Miscellaneous
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
2000 2,289,985 1,405,002 180,243 314,527 193,615 56,326 53,842 86,430
2001 2,308,020 1,524,300 179,591 213,651 197,318 68,184 53,343 71,633
2002 2,500,806 1,748,634 188,028 183,596 188,093 63,211 34,990 94,254
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CITY OF OAK PARK HEIGHTS, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS Table 3
Years 1993 Through 2002
(UNAUDITED)
Percent Total
of Collection Delinquent
Current Delinquent Total as a Outstanding Percent of
Taxes Total Current Tax Levy Tax Tax Percent Delinquent Current
Payable Tax Levy Collections Collected Collections Collections of Levy Taxes Levy
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 1,392,558 1,385,501 99.49% 7,674 1,393,175 100.04% 18,196 1.31%
1997 1,396,182 1,387,730 99.39% 4,194 1,391,924 99.70% 10,946 0.78%
1998 1,524,087 1,541,166 101.12% 5,726 1,546,892 101.50% 16,863 1.11%
1999 1,409,400 1,394,993 98.98% 4,296 1,399,289 99.28% 23,981 1.70%
2000 1,440,200 1,426,390 99.04% 13,454 1,439,844 99.98% 22,116 1.54%
2001 1,588,435 1,566,938 98.65% 16,563 1,583,501 99.69% 24,199 1.52%
2002 1,967,579 1,904,488 96.79% (18,789) 1,885,699 95.84% 20,174 1.03%
X1) 1996 through 2001 excludes HACA. 2002 excludes the Market Value Homestead Credit.
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CITY OF OAK PARK HEIGHTS, MINNESOTA
SPECIAL ASSESSMENT COLLECTIONS Table 4
Years 1993 Through 2002
(UNAUDITED)
Current Total
Collections Collections
As a Percent As a Percent
Current Current Of Current Delinquent Of Current Outstanding
Year Assessments Assessments Assessments Assessments Assessments Delinquent
Payable Due Collected Due _ Collected Due Assessments
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 98.09/0 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
2000 333,294 332,190 99.67% 1,647 100.16°/o 4,162
2001 312,038 311,840 99.94% 4,161 101.27% 197
2002 253,885 247,618 97.53% 197 97.61% 6,267
71
CITY OIL OAK PARK HEIGHTS, MINNESOTA
PRINCIPAL TAXPAYERS (Ten Largest Taxpayers) Table 5
Taxes Payable in 2002
(UNAUDITED)
Percent of Percent of
Total Net Total Tax
Market Market Tax Capacity Property
Taxpayer Val ue Value Capacity Value Classification
Xcel Energy Inc $76,783,100 21.9% $1,534,009 29.7% Electric Utilities
SC Mall LLC 10,107,800 2.9% 199,159 3.9% Commercial
KTJ Limited Partnership Eleven 9,184,800 2.6% 182,946 3.5% Commercial
VSSA Housing 13,578,700 3.9% 245,967 4.8% Res. over 4 units
Menards, Inc 6,230,800 1.8% 123,866 2.4% Commercial
Wal -Mart Real Estate Business 4,742,600 1.4% 94,102 1.8% Commercial
W.A.T.E. Enterprises, Inc. 2,992,800 0.9% 50,202 1.0% Commercial
Secure Mini Storage Limited Partnership 2,447,100 0.7% 48,792 0.9% Commercial
Oak Ridge Place of Oak Park 4,150,000 1.2% 74,700 1.4% Res. over 4 units
Stillwater West LLC 2,332,700 0.7% 45,186 0.9% Commercial
Totals 5132,550,400 37.9% $2,5 98,929 50.3%
Total City $349,905,800 $5,163,440
SOURCE: Washington County Auditor - Treasurer Taxation Division.
NOTES:
(t) 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.
72