HomeMy WebLinkAboutAnnual Financial Report December 31, 2003 CITY OF OAK PARK HEIGHTS, MINNESOTA
ANNUAL FINANCIAL REPORT
December 31, 2003
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
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 36
Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Statement 7 37
Special Revenue Funds:
_., Combining Balance Sheet Statement 8 42
Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 9 43
_ Debt Service Funds:
Combining Balance Sheet Statement 10 44
Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 11 45
Capital Project Funds:
Combining Balance Sheet Statement 12 46
Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 13 49
Enterprise Funds:
Statement 14 52
Balance Sheet
Combining Statement of Revenue, Expenses and Changes in Retained Earnings Statement 15 53
Statement of Cash Flows Statement 16 54
CITY OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
Number
Agency Funds:
Combining Balance Sheet Statement 17 55
Combining Statement of Changes in Assets and Liabilities Statement 18 56
General Fixed Assets Account Group:
Schedule of General Fixed Assets Statement 19 57
General Long -Term Debt Account Group:
Schedule of General Long -Term Debt Statement 20 58
Supplementary Financial Information
Combined Schedule of Indebtedness Exhibit 1 60
Debt Service Payments to Maturity: •
Revenue Bonds and General Debt Bonds Exhibit 2 61
Future Scheduled Tax Levies Exhibit 3 62
Taxable Valuations, Tax Levies and Tax Rates Exhibit 4 63
Schedule of Construction Costs
Exhibit 5 64
Statistical Section
General and Special Revenue Funds - Expenditures by Function -
Years 1994 through 2003 Table 1 66
General and Special Revenue Funds - Revenue by Source -
Years 1994 through 2003 Table 2 67
Property Tax Levies and Collections - Years 1994 through 2003 Table 3 68
Special Assessment Collections - Years 1994 through 2003 Table 4 69
Principal Taxpayers Table 5 70
i
CITY OF OAK PARK HEIGHTS, MINNESOTA
ORGANIZATION
December 31, 2003
Term Expires
Mayor:
David Beaudet December 31, 2004
Councilmembers:
Les Abrahamson December 31, 2006
Mark Swenson December 31, 2006
.r Jack Doerr December 31, 2004
Mary McComber December 31, 2004
Administrator:
Eric Johnson Appointed
r
Deputy Clerk/Finance Director:
Judy Holst Appointed
'- 1
Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Oak Park Heights, Minnesota
We have audited the accompanying general purpose financial statements of the City of Oak
Park Heights, Minnesota, as of and for the year ended December 31, 2003, as listed in the
table of contents. These general purpose financial statements are the responsibility of the
City of Oak Park Heights, Minnesota's management. Our responsibility is to express an
opinion on these general purpose financial statements based on our audit.
r We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the general purpose financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the general purpose financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the
overall general purpose financial statement presentation. We believe that our audit provides
a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all
material respects, the financial position of the City of Oak Park Heights, Minnesota, as of
December 31, 2003, and the results of its operations and the cash flows of its proprietary
fund types for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued a report dated
February 26, 2004 on our consideration of the City of Oak Park Heights, Minnesota's
internal control over financial reporting and our tests of its compliance with certain
provisions of laws, regulations, contracts and grants. That report is an integral part of an
audit performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit.
White Bear Lake Office: 4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA Telephone: 651 426 7000 Fax: 651 426 5004
Hastings Office: 1303 South Frontage Road, Suite 13, Hastings, MN 55033, USA Telephone: 651 480 4990 Fax: 651 426 5004
HLB Tautges Redpath, Ltd. is a member of ® International. A world -wide organization of accounting firms and business advisers.
Our audit was performed for the purpose of forming an opinion on the general purpose
financial statements taken as a whole. The combining, individual fund and account group
_ financial statements, supporting schedules and supplementary information listed in the table
of contents are presented for purposes of additional analysis and are not a required part of the
general purpose financial statements of the City of Oak Park Heights, Minnesota. Such
_ information, except for that portion marked "unaudited," on which we express no opinion,
has been subjected to the auditing procedures applied in the audit of the general purpose
financial statements and, in our opinion, is fairly stated, in all material respects, in relation to
the general purpose financial statements taken as a whole.
February 26, 2004
_ HLB TAUTGES REDPATH, LTD.
Certified Public Accountants
5
GENERAL PURPOSE FINANCIAL STATEMENTS
_ 7
CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINED BALANCE SHEET -
ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 2003
Governmental Fund Types
Special Debt
Assets General Revenue Service
Cash and investments $1,665,006 $84,105 $585,676
Accrued interest receivable _ _
Accounts receivable 1,106
Due from other governmental units 70,029
Due from developers _ _
Prepaid items _ -
Taxes receivable:
Delinquent 30 - 990
Due from County 16,633 - 504
Special assessments receivable - - 838,727
Fixed assets (net of accumulated depreciation) _ _ _
Amount available in general fund
Amount available in debt service fund _
Amount to be provided for retirement of general long -term debt - - _
Total assets $1,783,329 $84,105 $1,425,897
Liabilities, Equity and Other Credits
Liabilities:
Cash overdraft $ _ $ _ $
Escrow deposits payable -
Accounts payable 45,927
Salaries payable 1,549
Contracts payable - _
Due to other governmental units 9,667 121
Due to developers - _
Compensated absences payable
Bonds payable _
Deferred revenue 31,575 - 835,688
Total liabilities 88,718 121 835,688
Equity and other credits:
Invested in general fixed assets - _
Contributed capital - net _
Retained earnings:
Reserved _
Unreserved _
Fund balance:
Reserved - - 590,209
Unreserved:
Designated 1,492,458 83,984 -
Undesignated 202,153 - -
Total equity and other credits 1,694,611 83,984 590,209
Total liabilities, equity and other credits $1,783,329 $84,105 $1,425,897
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 2003 2002
$5,208,395 $523,193 $25,137 $ - $ - $8,091,512 $6,815,166
_ - 135,480 - - 135,480 164,379
182,221 - - - 183,327 193,115
- _ - _ - 70,029 32,685
50,684 - 17,334 - - 68,018 25,391
- 22,339 - - - 22,339 26,173
7 _ _ _ - 31,552 20,174
_ - _ - 17,137 8,553
134,234 - 5,555 - - 978,516 1,200,970
- 5,742,254 - 3,585,527 - 9,327,781 9,270,912
_ - _ _ 128,458 128,458 122,365
590,209 590,209 588,131
_ - 1,300,413 1,300,413 1,713,560
$5,393,320 $6,470,007 $183,506 $3,585,527 $2,019,080 $20,944,771 $20,181,574
$240 $ - $135,480 $ - $ - $135,720 $165,981
9,347 - 13,000 - - 22,347 23,347
_ 32,333 19,904 9,397 - - 107,561 75,965
- 1,376 - - - 2,925 3,109
54,530 - - - - 54,530 7,053
- 3,326 - - - 13,114 29,574
- 25,629 - - 25,629 29,493
35,544 - - 159,080 194,624 191,423
- _ _ 1,860,000 1,860,000 2,270,000
134,241 - - - - 1,001,504 1,218,340
230,691 60,150 183,506 0 2,019,080 3,417,954 4,014,285
- - - 3,585,527 - 3,585,527 3,485,632
- 5,252,271 - - - 5,252,271 5,400,937
_ - 200,000 - - - 200,000 200,000
- 957,586 - - - 957,586 709,584
- - - 590,209 588,131
5,162,629 - - - - 6,739,071 5,783,195
- _ - 202,153 (190)
5,162,629 6,409,857 0 3,585,527 0 17,526,817 16,167,289
$5,393,320 $6,470,007 $183,506 $3,585,527 $2,019,080 $20,944,771 $20,181,574
The accompanying notes are an integral part of these financial statements.
^ 9
CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND Statement 2
CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES
For The Year Ended December 31, 2003
Totals
Special Debt Capital (Memorandum Only)
General Revenue Service Project 2003 2002
Revenue:
General property taxes $1,859,203 $ - $59,191 $12 $1,918,406 $1,802,455
Special assessments - - 165,498 126,485 291,983 253,839
Intergovernmental 79,171 - - - 79,171 191,078
Licenses and permits 313,273 - - - 313,273 183,596
Charges for services 209,076 - - - 209,076 188,093
Fines and forfeits 61,146 - - - 61,146 63,211
Earnings on investments 32,067 2,585 18,488 150,462 203,602 231,164
Connection charges - - - 770,407 770,407 199,880
Direct charges to developers - - - 953,326 953,326 149,370
Refunds and reimbursements 69,903 462 - 5,827 76,192 85,112
Donations and contributions 1,500 - - 22,205 23,705 93,800
Other 484 6,651 - 8,188 15,323 23,930
Total revenue 2,625,823 9,698 243,177 2,036,912 4,915,610 3,465,528
Expenditures:
Current:
General government 769,032 - - - 769,032 779,454
Public safety 1,017,406 2,688 - - 1,020,094 1,001,286
Public works 160,724 - - 206,662 367,386 219,542
Recreation 95,818 - - - 95,818 87,932
Community development 19,796 390 - - 20,186 112,775
Capital outlay - 1,978 - 60,157 62,135 67,520
Debt service:
Principal - - 410,000 - 410,000 895,000
Interest - - 80,581 - 80,581 114,618
Paying agent fees - - - - - 3,810 •
Construction costs - - - 1,000,147 1,000,147 203,600
Total expenditures 2,062,776 5,056 490,581 1,266,966 3,825,379 3,485,537
Revenue over (under) expenditures 563,047 4,642 (247,404) 769,946 1,090,231 (20,009)
Other financing sources (uses):
Refunding bonds issued - - - - - 510,000
Discount on debt issued - - - - - (7,650)
Operating transfers from other funds - - 249,482 267,731 517,213 485,922
Operating transfers to other funds (197,665) - - (249,482) (447,147) (420,875)
Total other financing sources (uses) (197,665) 0 249,482 18,249 70,066 567,397
Net increase in fund balance 365,382 4,642 2,078 788,195 1,160,297 547,388
Fund balance - January 1 1,329,229 79,342 588,131 4,374,434 6,371,136 5,823,748
Fund balance - December 31 $1,694,611 $83,984 $590,209 $5,162,629 $7,531,433 $6,371,136
The accompanying notes are an integral part of these financial statements.
10
CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND Statement 3
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
For The Year Ended December 31, 2003
2003
Favorable
(Unfavorable) 2002
Budget Actual Variance Actual
Revenue:
General property taxes $1,857,516 $1,859,203 $1,687 $1,748,634
Intergovernmental 179,078 79,171 (99,907) 180,858
.- Licenses and permits 166,050 313,273 147,223 183,596
Charges for services 142,905 209,076 66,171 188,093
Fines and forfeits 67,000 61,146 (5,854) 63,211
Earnings on investments 30,000 32,067 2,067 32,052
Refunds and reimbursements 59,175 69,903 10,728 69,074
Donations and contributions - 1,500 1,500 100
Other - 484 484 10,335
Total revenue 2,501,724 2,625,823 124,099 2,475,953
Expenditures:
Current:
General government 839,400 769,032 70,368 779,454
Public safety 1,059,620 1,017,406 42,214 999,139
Public works 185,375 160,724 24,651 134,337
Recreation 101,155 95,818 5,337 87,932
Community development 27,130 19,796 7,334 112,240
Capital outlay - - - 5,865
Total expenditures 2,212,680 2,062,776 149,904 2,118,967
Revenue over expenditures 289,044 563,047 274,003 356,986
Other financing sources (uses):
Operating transfers to other funds (186,500) (197,665) (11,165) (200,875)
Net increase in fund balance $102,544 365,382 $262,838 156,111
.- Fund balance - January 1 1,329,229 1,173,118
Fund balance - December 31 $1,694,611 $1,329,229
The accompanying notes are an integral part of these financial statements.
_ 11
CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENSES AND Statement 4
CHANGES IN RETAINED EARNINGS
PROPRIETARY FUND TYPE
For The Year Ended December 31, 2003
Enterprise Fund
2003 2002
Operating revenue:
Customer billings $1,039,739 $975,760
Penalties 14,051 11,309
Plumbing permits 7,640 1,635
Meter sales 17,733 5,725
Charges for services 14,263 3,222
Total operating revenue 1,093,426 997,651
Operating expenses:
Personal services 213,812 231,424
Contractual services 292,941 355,966
Refunds and reimbursements 500 -
Recycling award 600 606
MCES charges 274,430 257,783
Materials and supplies 12,495 9,887
Administrative and personnel charges 87,205 89,780
Depreciation 163,220 159,790
Total operating expenses 1,045,203 1,105,236
Net income (loss) from operations 48,223 (107,585)
Nonoperating revenue (expenses):
Earnings on investments 17,045 18,941
Capital contributions 104,134 147,920
Loss on disposal of fixed assets - (7,312)
Total nonoperating revenue (expenses) 121,179 159,549
Net income before operating transfers 169,402 51,964
Other financing sources (uses):
Operating transfer from other funds 88,500 88,500
Operating transfer to other funds (158,566) (153,547)
Total other financing sources (uses) (70,066) (65,047)
Net income (loss) 99,336 (13,083) _
Other increases:
Credit arising from transfer of depreciation to
contributions from property owners 148,666 145,947
Net increase in retained earnings 248,002 132,864
Retained earnings - January 1 909,584 776,720
Retained earnings - December 31 $1,157,586 $909,584
The accompanying notes are an integral part of these financial statements.
12
CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINED STATEMENT OF CASH FLOWS - Statement 5
PROPRIETARY FUND TYPE
For The Year Ended December 31, 2003
Enterprise Fund
2003 2002
Cash flows from operating activities:
Operating income (loss) $48,223 ($107,585)
Adjustments to reconcile operating income (loss) to
net cash flows from operating activities:
Depreciation 163,220 159,790
Prior period adjustment (5,390) -
Change in assets and liabilities:
Decrease (increase) in receivables (15,551) (26,329)
Decrease (increase) in prepaid expenses 3,834 (2,474)
Increase (decrease) in payables (14,605) 13,636
._ Net cash flows from operating activities 179,731 37,038
Cash flows from noncapital financing activities:
Operating transfers from other funds 88,500 88,500
Operating transfers to other funds (158,566) (153,547)
Net cash flows from noncapital financing activities (70,066) (65,047)
Cash flows from capital and related financing activities:
Acquisition of fixed assets (10,670) (8,803)
Cash flows from investing activities:
Earnings on investments 17,045 18,941
Net increase (decrease) in cash and cash equivalents 116,040 (17,871)
Cash and cash equivalents - January 1 407,153 425,024
Cash and cash equivalents - December 31 $523,193 $407,153
Significant noncash investing, capital and financing activities:
During 2003 and 2002, fixed assets were contributed to the Enterprise Fund as follows:
.-. 2003 2002
Water Operating Fund $43,267 $123,192
Sewer Operating Fund 60,867 24,728
Total $104,134 $147,920
r
The accompanying notes are an integral part of these financial statements.
13
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,
�.. The City of Oak Park Heights operates under the State of Minnesota Statutory Plan A form of government.
The governing body consists of a five member City council elected by voters of the City.
The financial statements of the City of Oak Park Heights have been prepared in conformity with generally
accepted accounting principles as applied to governmental units by the Governmental Accounting Standards
Board (GASB). The following is a summary of the significant accounting policies.
A. FINANCIAL REPORTING ENTITY
As required by generally accepted accounting principles, the financial statements of the reporting
entity include those of the City of Oak Park Heights (the primary government) and its component
units, entities which the City is considered to be financially accountable. Blended component units,
although legally separate entities, are, in substance, part of the City's operations and so data from these
units are combined with data of the primary government.
BLENDED COMPONENT UNITS
The HRA of the City of Oak Park Heights is a separate legal entity which is authorized to expend
monies generated by the City's tax increment district. The City council also serve as HRA board
members. 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.
Soecial Revenue Funds - to account for the proceeds of specific revenue sources that are legally
restricted to expenditure for specified purposes.
15
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
Debt Service Funds - to account for the accumulation of resources for, and the payment of,
general long -term debt principal, interest, and related costs. r
Capital Proiect Funds - to account for financial resources to be used for the acquisition or
construction of major facilities other than those financed by Proprietary Funds.
PROPRIETARY FUNDS
Entemrise 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
/g ontinuing basis be financed or recovered primarily through user charges; or, (b) where the
overning body has decided that periodic determination of revenues earned, expenses incurred,
and/or net income is appropriate for capital maintenance, public policy, management control,
accountability, or other purposes.
FIDUCIARY FUNDS
Aeencv Funds - to account for assets held by a governmental unit in a trustee capacity or as an
agent for individuals, private organizations, other governmental units, and/or other funds.
ACCOUNT GROUPS
The governmental fund types are designed to account for the financial flow of a particular fund;
therefore, they generally include only current assets and current liabilities on their balance sheets.
The City maintains two account groups to account for noncurrent assets and long -term liabilities
as follows:
General Fixed Assets - The City maintains a separate account group which contains the fixed
assets used in the governmental fund type operations. They are assets of the City as a whole and
not of individual funds.
General Lone -Term Debt - This account group contains the long -term obligations of the City
including general obligation bonds, certificates of indebtedness, contracts payable and _
compensated absences payable. These long -term liabilities are expected to be financed by the
governmental funds.
16
r
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
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 due.
The accrual basis of accounting is followed for the Proprietary Funds. Under this method of
accounting, revenues are recognized during the accounting period in which they are earned and
become measurable and expenses are recognized in the accounting period in which they are incurred if
measurable. Governmental Accounting Standards Board (GASB) Statement No. 20, Accounting and
Financial Reporting for Proprietary Funds and Other Governmental Entities that Use Proprietary
Funds provides proprietary activities with a choice of authoritative guidance issued after November
30, 1989. The City of Oak Park Heights has elected to follow GASB pronouncements exclusively
r after that date.
The government reports deferred revenue on its combined balance sheet. Deferred revenues arise
when a potential revenue does not meet both the "measurable" and "available" criteria for recognition
in the current period. Deferred revenues also arise when resources are received by the government
before it has a legal claim to them, as when grant monies are received prior to the incurrence of
qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or
when the government has a legal claim to the resources, the liability for deferred revenue is removed
from the combined balance sheet and revenue is recognized.
�' 17
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
The City has reported as deferred revenues the amount of $1,001,504, which consists of the following:
Unearned grants $1,020
Property taxes receivable 31,552
Special assessments receivable 968,932
Total $1,001,504
D. BUDGETS
Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual
appropriated budgets are adopted for the General Fund. The City does not adopt a budget for the
Special Revenue Funds and accordingly the combined statement of revenue, expenditures and changes
in fund balance - budget and actual (Statement 3) excludes amounts relating to these unbudgeted
funds.
Budgeted amounts are reported as originally adopted, or as amended by the City Council. Individual
amendments were not material in relation to the original appropriations which were adjusted.
Budgeted expenditure appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not
employed by the City because it is at present not considered necessary to assure effective budgetary
control or to facilitate effective cash management.
E. LEGAL COMPLIANCE - BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Administrator submits to the City Council a proposed operating budget for the fiscal
year commencing the following January 1. The operating budget includes proposed
expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmental basis and can
be expended by each department based upon detailed budget estimates for individual
expenditure accounts. ..
18
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
._ December 31, 2003
4. The department heads are authorized to transfer appropriations under $500 within any
department budget. Additional interdepartmental or interfund appropriations and deletions
are or may be authorized by the City Council with fund (contingency) reserves or additional
revenues.
5. Formal budgetary integration is employed as a management control device during the year for
the General Fund.
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies
for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to
determine and calculate user charges. These debt service and budget amounts represent
general obligation bond indenture provisions and net income for operation and capital
maintenance and are not reflected in the financial statements.
7. A capital improvement program is reviewed annually by the City Council for the Capital
Project Funds. However, appropriations for major projects are not adopted until the actual
—" bid award of the improvement. The appropriations are not reflected in the financial
statements.
8. Expenditures may not legally exceed budgeted appropriations at the total fund level.
Monitoring of budgets is maintained at the expenditure category level (i.e., personal services;
material and supplies; contractual services; capital outlay) within each department. All
amounts over budget have been approved by the City council through the disbursement
approval process.
9. The City Council may authorize transfer of budgeted amounts between City funds.
The following is a listing of General Fund departments whose expenditures exceed budget
appropriations:
_. Over
Budget Actual Budget
Elections $250 $1,824 $1,574
Engineering 27,000 30,526 3,526
Fire protection 97,280 99,680 2,400
19
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
F. CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in
authorized investments. Earnings from investments are allocated to individual funds on the basis of
the fund's equity in the cash and investment pool.
Investments are stated at fair value, based upon quoted market prices.
For purposes of the statement of cash flows the Enterprise Fund considers all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents. All of the cash and
investments allocated to the Enterprise Fund have original maturities of 90 days or less. Therefore the
entire balance in the fund is considered cash equivalents.
G. PROPERTY TAX REVENUE 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 2003 and 2002
totaled $102,566 and $70,262, respectively. Receipt of property taxes from this "fiscal disparities
pool" does not increase or decrease total tax revenue.
20
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
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 term of years usually consistent with the term of the related bond issue.
Collection of annual installments (including interest) is handled by the County Auditor in the same
manner as property taxes. Property owners are allowed to (and often do) prepay future installments
without interest or prepayment penalties.
Revenue from special assessments is recognized by the City when it becomes measurable and
available to finance expenditures of the current fiscal period. In practice, current and delinquent
special assessments received by the City are recognized as revenue for the current year. Special
assessments are collected by the County and remitted by December 31 (remitted to the City the
following January) and are also recognized as revenue for the current year. All remaining delinquent,
deferred and special deferred assessments receivable in governmental funds are completely offset by
deferred revenues.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that
property until full payment is made or the amount is determined to be excessive by the City Council or
court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit
sale. 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 ASSETS
GENERAL FIXED ASSETS
General fixed assets are recorded as expenditures of the Governmental Funds at the time of purchase.
Such assets are capitalized at historical cost or estimated historical cost in the General Fixed Asset
Account Group. Public Domain ( "infrastructure ") general fixed assets consisting of roads, bridges,
curbs, gutters, streets, sidewalks, drainage systems and lighting systems are excluded from general
fixed assets as these assets are immovable and of value only to the City. Gifts or contributions are
recorded in general fixed assets at fair market value at the time received. No depreciation has been
provided on general fixed assets. Interest incurred during construction is not capitalized on general
fixed assets.
21
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
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 i
borrow to finance the construction of Proprietary Fund fixed assets in 2002 or 2003.
K. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay
benefits. No liability is recorded for unpaid accumulated sick leave, except that portion that is payable
as severance. Vested or accumulated vacation leave and other benefit amounts that are expected to be
liquidated with expendable available financial resources are reported as an expenditure and a fund
liability of the governmental fund that will pay them. Amounts that are not expected to be liquidated
with expendable available financial resources are reported in the General Long -Term Debt Account
Group. No expenditure is reported for these amounts. Vested or accumulated vacation leave and
other benefit amounts of proprietary funds are recorded as an expense and liability of those funds as
the benefits accrue to employees.
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22 i
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
L. LONG -TERM OBLIGATIONS
Long -term debt is recognized as a liability of a governmental fund when due, or when resources have
been accumulated in the Debt Service Fund for payment early in the following year. For other long-
term obligations, only that portion expected to be financed from expendable available financial
resources is reported as a fund liability of a governmental fund. The remaining portion of such
obligations is reported in the General Long -Term Debt Account Group. Long -term liabilities expected
to be financed from proprietary fund operations are accounted for in those funds.
M. FUND EQUITY
Contributed capital is recorded in Proprietary Funds that have received capital grants or contributions
from developers, customers or other funds. Reserves represent those portions of fund equity not
appropriable for expenditure or legally segregated for a specific future use. Designated fund balances
represent tentative plans for future use of financial resources.
N. INTERFUND TRANSACTIONS
Quasi - external transactions are accounted for as revenues, expenditures or expenses. Transactions that
constitute reimbursements to a fund for expenditures /expenses initially made from it that are properly
applicable to another fund, are recorded as expenditures /expenses in the reimbursing fund and as
reductions of expenditures /expenses in the fund that is reimbursed.
All other interfund transactions, except quasi - external transactions and reimbursements, are reported
as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity
transfers. All other interfund transfers are reported as operating transfers.
O. MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the General Purpose Financial Statements are captioned "Memorandum Only" to
_ indicate that they are presented only to facilitate financial analysis. Data in these columns do not
present financial position, results of operations or changes in cash flow in conformity with generally
accepted accounting principles. Neither are such data comparable to a consolidation. Interfund
eliminations have not been made in the aggregation of this data.
P. USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted accounting principles
(GAAP) requires management to make estimates that affect amounts reported in the financial
statements during the reporting period. Actual results could differ from such estimates.
23
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
Note 2 DEPOSITS AND INVESTMENTS
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks
authorized by the City Council, all of which are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral.
The market value of collateral pledged must equal 110% of the deposits not covered by insurance or
bonds.
Authorized collateral includes the following:
1. United States government treasury bills, treasury notes, treasury bonds;
2. Issues of United States government agencies and instrumentalities as quoted by a recognized
industry quotation service available to the government entity;
3. General obligation securities of any state or local government with taxing powers which is
rated "A" or better by a national bond rating service, or revenue obligation securities of any
state or local government with taxing powers which is rated "AA" or better by a national
bond rating service;
4. Unrated general obligation securities of a local government with taxing powers may be
pledged as collateral against funds deposited by that same local government entity;
5. Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality
accompanied by written evidence that the bank's public debt is rated "AA" or better by
Moody's Investors Service, Inc., or Standard & Poor's Corporation; and
6. Time deposits that are fully insured by the Federal Deposit Insurance Corporation.
Balances at December 31, 2003 are as follows:
Bank Carrying
Balances Amount
1) Insured or collateralized by securities held by the City $7,192,125 $7,012,292
or its agent in the City's name.
2) Collateralized with securities held by the pledging institution
trust department in the City's name. - -
3) Uncollateralized or collateralized with securities
not in the City's name.
Totals $7,192,125 $7,012,292
24
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
B. INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its
instrumentalities, or organizations created by an act of congress, excluding mortgage- backed
securities defined as high risk.
b) Shares of investment companies registered under the Federal Investment Company Act of 1940
and whose only investments are in securities described in (a) above, general obligation tax - exempt
securities, or repurchase or reverse repurchase agreements.
c) Obligations of the State of Minnesota or any of its municipalities as follows:
I . any security which is a general obligation of any state or local government with taxing
powers which is rated "A" or better by a national bond rating service;
2. any security which is a revenue obligation of any state or local government with taxing
powers which is rated "AA" or better by a national bond rating service; and
3. a general obligation of the Minnesota housing finance agency which is a moral obligation of
the state of Minnesota and is rated "A" or better by a national bond rating agency.
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.
g) General obligation temporary bonds of the same governmental entity issued under Section
429.041, Subd. 7, 469.178, Subd. 5 or 475.6 1, Subd. 6.
25
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
Balances at December 31, 2003 were:
Carrying
Custodial Credit Risk category Amount
Securities Type 1 2 3 (at Fair Value)
U.S. Government and Agency Securities $738,939 $ - $ - $738,939
Investments not subject to credit risk categorization:
4M Fund and money market 204,461
Total investment 943,400
Deposits 7,012,292
Total deposits and investments 7,955,692
Change funds 100
Total $7,955,792
r
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.
Note 3 FIXED ASSETS
A summary of changes in general fixed assets is as follows:
Balance Balance
1/1/2003 Additions Deletions Adjustments 12/31/2003
Land $1,203,690 $ - $ - ($20,000) $1,183,690
Land improvements 499,601 88,000 - - 587,601
Buildings and structures 1,165,981 - - (15,437) 1,150,544
Machinery and equipment 379,026 61,290 31,987 42,067 450,396
Furniture and fixtures 237,334 31,229 55,267 - 213,296
Totals $3,485,632 $180,519 $87,254 $6,630 $3,585,527
The adjustments to general fixed assets were made to align the amounts reported in this report to the City's
fixed asset records.
26
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
A summary of Enterprise Fund fixed assets at December 31, 2003 is as follows:
Enterprise
Land $60,000
Buildings and structures 1,320,334
Machinery and equipment 205,039
Distribution and collection systems 6,454,890
-- Total 8,040,263
Less: allowance for depreciation (2,298,009)
Net fixed assets $5,742,254
Note 4 CITY INDEBTEDNESS
The following is a schedule of changes in City indebtedness for the year ended December 31, 2003:
Balance Balance
01/01/03 Additions Deletions 12/31/03
General Long -Term Debt Account Group:
Bonded debt:
General obligation $510,000 $ - $135,000 $375,000
Special assessment bonds 1,760,000 - 275,000 1,485,000
Compensated absences 154,056 5,024 - 159,080
Total general long -term debt 2,424,056 5,024 410,000 2,019,080
Proprietary funds:
Compensated absences 37,367 - 1,823 35,544
'— Totals $2,461,423 $5,024 $411,823 $2,054,624
All long -term bonded indebtedness outstanding at December 31, 2003 is backed by the full faith and credit of
the City, including special assessment bond issues. Delinquent assessments receivable at December 31, 2003
totaled $634.
27
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
The annual requirement to amortize all debt outstanding at December 31, 2003 including interest payments of
$322,268 is as follows:
Year General
Ending Obligation
December 31, Bonds
2004 $468,336
2005 451,710
2006 234,535
2007 162,687
2008 157,500
2009 -2013 707,500
Total $2,182,268
It is not practicable to determine the specific year for payment of long -term accrued compensated absences.
Long -term debt at December 31, 2003 is composed of the following:
Final Authorized
Issue Maturity Interest And Outstanding
Date Date Rate Issued 12/31/03
General Long -Term Debt:
General obligation bonds:
G.O. Refunding Bonds of 2002 11/01/02 12/01/06 2.19 $510,000 $375,000
Special assessment bonds:
G.O. Improvement Bonds of 1998 10/01/98 12/01/13 4.19 1,990,000 1,250,000
G.O. Refunding Bonds of 2001 11 /01 /01 12/01/05 2.98 490,000 235,000
Compensated absences payable 159,080
Total general long -term debt $2,019,080
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0
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
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 2002 and 2003 is computed as follows:
-- December 31,
2003 2002
_. Market value (for pay 2003 and 2002) $406,640,800 $349,905,800
Debt limit percentage 2.00% 2.00%
Debt limit 8,132,816 6,998,116
_ Amount of debt applicable to debt limit:
Total bonded debt 1,860,000 2,270,000
Less:
Non applicable debt:
Revenue bonds (375,000) (510,000)
Special assessment bonds (1,485,000) (1,760,000)
Total amount of debt applicable to debt limit 0 0
Legal debt margin $8,132,816 $6,998,116
Note 6 PENSION PLANS
A. PERA DEFINED BENEFIT PLAN
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
y " cost - sharing, multiple - employer retirement plans. These plans are established and administered in
accordance with Minnesota Statute, Chapters 353 and 356.
_ PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. All new members must participate in the
Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by
statute are covered by the PEPFF.
29
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
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.
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. ..
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: 11.78% 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,
2003, 2002 and 2001 were $31,701, $38,971 and $33,561, respectively. The City's contributions to
the Public Employees Police and Fire Fund for the years ending December 31, 2003, 2002 and 2001
were $55,917, $54,554 and $52,132, respectively. The City's contributions were equal to the
contractually required contributions for each year as set by state statute.
B. DEFINED CONTRIBUTION PLAN
The City administrator does not participate in PERA, but is covered by a defined contribution plan
administered by the ICMA Retirement Corporation. The Plan is a tax qualified plan under Section 457
of the Internal Revenue Code and all contributions by or on behalf of the employee are tax deferred
until time of withdrawal.
..o
The City is required to contribute 10% of the annual base salary. Plan provisions and contribution
requirements are established and may be amended by the City council. Employer contributions were
$5,152 for the year ended December 31, 2003.
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30
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
Note 7 RECONCILIATION OF CONTRIBUTED CAPITAL
Changes to contributed capital during the year are as follows:
Depreciation
Beginning on Contributed Ending
Balance Assets Adjustments Balance
Water $2,804,477 ($78,066) $433 $2,725,978
Sewer 2,596,460 (70,600) (433) 2,526,293
Total $5,400,937 ($148,666) $0 $5,252,271
In accordance with GASB Statement No. 33, the City records capital contributions as nonoperating revenue.
Capital contributions were $104,134 for the year ended December 31, 2003.
Note 8 CONTINGENCIES
A. LITIGATION
The City attorney has indicated there are no existing and pending lawsuits, claims and other actions in
which the City is a defendant.
B. FEDERAL AND STATE FUNDS
The City receives financial assistance from federal and state governmental agencies in the form of
grants. The disbursement of funds received under these programs generally requires compliance with
the terms and conditions specified in the grant agreements and is subject to audit by the grantor
agencies. Any disallowed claims resulting from such audits could become a liability of the applicable
fund. However, in the opinion of management, any such disallowed claims will not have a material
effect on any of the financial statements of the individual fund types included herein or on the overall
financial position of the City at December 31, 2003.
C. TAX INCREMENT DISTRICTS
-- The City's tax increment districts are subject to review by the State of Minnesota Office of the State
Auditor (OSA). 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 fund. Management has indicated that they are not aware of any instances of
noncompliance which would have a material effect on the financial statements.
31
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
Note 9 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, 2003 totaled $124,000.
Note 10 DESIGNATIONS AND RESERVATIONS OF FUND EOUITY
At December 31, 2003 and 2002 the City had designated and reserved portions of its various fund equities
through legal restriction and City Council authorization. Major fund equity appropriations at December 31,
2003 and 2002 are shown on the various balance sheets as segregations of the fund equity. A summary of such
designations is as follows:
December 31,
2003 2002
General Fund:
Designated for cash flow $996,000 $973,000
Designated for contingent employee benefit 128,458 122,365
Designated for general contingency 368,000 233,864
Special Revenue Funds:
Designated for special revenue programs 83,984 79,342
Debt Service Funds:
Reserved for debt service 590,209 588,131
Capital Project Funds:
Designated for capital improvements 5,162,629 4,367,526
Designated for committed contracts - 7,098
Y
Enterprise Fund:
Reserved for debt service reserve 200,000 200,000
Totals $7,529,280 $6,571,326
32
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
Note 11 COMMITMENTS
Construction commitments at December 31, 2003 were composed of the following:
Expended Remaining
Contract as of Contract
Description Authorized 12/31/03 Commitment
McKean Square $982,281 $747,128 $235,153
The McKean Square contract is 100% developer reimbursed.
Note 12 MAJOR TAXPAYER
--. The City has one major taxpayer, Xcel Energy. The total tax capacity value for this taxpayer represented
approximately 27% of the City's total tax capacity value for taxes payable in 2003.
Note 13 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; and natural disasters.
Workers compensation coverage is provided through a pooled self - insurance program through the League of
Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject
to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers
Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is
not subject to a deductible. The City's workers compensation coverage is retrospectively rated. With this type
of coverage, final premiums are determined after loss experience is known. The amount of premium
adjustment, if any, is considered immaterial and not recorded until received or paid.
Property and casualty insurance coverage is provided through a pooled self - insurance program through the
LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if
deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess
various amounts. The City retains risk for deductible portions. These deductibles are considered immaterial to
the financial statements.
Employee health and disability insurance is provided through commercial insurance. 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.
.a
33
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
Note 14 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, 2003, there were four series of Industrial Revenue Bonds outstanding. The principal
amount payable at December 31, 2003 could not be determined; however, their original issue amounts totaled
$34,985,000.
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COMBINING, INDIVIDUAL FUND
AND ACCOUNT GROUP
FINANCIAL STATEMENTS
35
CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL FUND Statement 6
BALANCE SHEET
December 31, 2003
With Comparative Amounts For December 31, 2002
December 31,
Assets 2003 2002
Cash and investments $1,665,006 $1,321,714
Accounts receivable 965 7,824
Accounts receivable - certified 141 18,621
Due from other governmental units 70,029 31,560
Taxes receivable:
Delinquent 30,555 19,545
Due from County 16,633 8,300
Total assets $1,783,329 $1,407,564
Liabilities and Fund Balance
Liabilities:
Accounts payable $45,927 $35,153
Salaries payable 1,549 867
Due to other governmental units 9,667 21,750
Deferred revenue 31,575 20,565
Total liabilities 88,718 78,335
Fund balance:
Unreserved:
Designated for cash flow 996,000 973,000
Designated for contingent employee benefit 128,458 122,365 _
Designated for general contingency 368,000 233,864
Undesignated 202,153 -
Total fund balance 1,694,611 1,329,229
Total liabilities and fund balance $1,783,329 $1,407,564
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36
CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL FUND Statement 7
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 1 of 5
IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2003
With Comparative Actual Amounts For The Year Ended December 31, 2002
_ 2003
Favorable
(Unfavorable) 2002
Budget Actual Variance Actual
Revenue:
General property taxes:
Current and delinquent $1,842,516 $1,844,234 $1,718 $1,730,944
Payment in lieu of taxes 15,000 13,912 (1,088) 16,431
Other taxes - 1,057 1,057 1,259
Total general property taxes 1,857,516 1,859,203 1,687 1,748,634
Intergovernmental:
Federal:
Safe and sober - 2,058 2,058 4,140
Underage compliance checks 2,000 1,380 (620) 1,425
State:
Market value homestead credit 88,487 - (88,487) 97,935
Local government aid 15,951 - (15,951) 4,881
'- Police aid 55,000 54,555 (445) 52,132
Police training aid - 3,815 3,815 3,393
PERA rate increase aid 2,040 2,040 - 2,040
County:
Recycling grant 14,700 13,538 (1,162) 14,250
Gravel tax allocation 900 1,785 885 662
Total intergovernmental 179,078 79,171 (99,907) 180,858
Licenses and permits 166,050 313,273 147,223 183,596
Charges for services:
._ General government 12,000 18,455 6,455 17,706
Development charge - - - 6,000
Refuse charge - Junker settlement - 52 52 28,460
Inspections - City of Bayport 43,700 88,751 45,051 44,064
Administrative - Enterprise Fund 87,205 87,205 - 89,780
Administrative - Construction - 14,613 14,613 2,083
Total charges for services 142,905 209,076 66,171 188,093
Fines and forfeits 67,000 61,146 (5,854) 63,211
Earnings on investments 30,000 32,067 2,067 32,052
Refunds and reimbursements 59,175 69,903 10,728 69,074
Donations and contributions - 1,500 1,500 100
Sale of property - 140 140 10,335
Other - 344 344 -
._ Total revenue 2,501,724 2,625,823 124,099 2,475,953
37
CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL FUND Statement 7
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 2 of 5
IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2003
With Comparative Actual Amounts For The Year Ended December 31, 2002
2003 _
Favorable
(Unfavorable) 2002
Budget Actual Variance Actual
Expenditures:
General government:
Mayor and council:
Current: �+
Personal services $48,990 $44,339 $4,651 $38,288
Materials and supplies 1,500 297 1,203 785
Contractual services 25,450 14,348 11,102 22,516
Total mayor and council 75,940 58,984 16,956 61,589
City administration:
Current: _
Personal services 129,405 124,468 4,937 149,656
Materials and supplies 3,100 1,869 1,231 1,442
Contractual services 15,000 5,410 9,590 10,181
Total City administration 147,505 131,747 15,758 161,279
Legal:
Current:
Personal services 28,500 21,847 6,653 22,345
General management and building:
Current:
Materials and supplies 7,300 5,765 1,535 6,722
Contractual services 68,500 57,658 10,842 56,861
Total general management and building 75,800 63,423 12,377 63,583
Elections: _
Current:
Personal services - 1,394 (1,394) 4,881
Materials and supplies - 430 (430) 389
Contractual services 250 - 250 250
Total elections 250 1,824 (1,574) 5,520
Finance:
Current:
Personal services 167,010 166,530 480 164,301
Materials and supplies 2,400 1,648 752 1,632
Contractual services 3,225 1,937 1,288 3,150
Total finance 172,635 170,115 2,520 169,083
Computer system:
Current:
Materials and supplies 1,000 1,490 (490) 1,941
Contractual services 6,000 4,945 1,055 9,965
Total current 7,000 6,435 565 11,906
Capital outlay - - - 5,865
Total computer system 7,000 6,435 565 17,771
Audit:
Current:
Personal services 13,000 12,750 250 12,044
38
CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL FUND Statement 7
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 3 of 5
IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2003
With Comparative Actual Amounts For The Year Ended December 31, 2002
_ 2003
Favorable
(Unfavorable) 2002
Budget Actual Variance Actual
Expenditures: (continued)
General government: (continued)
Insurance:
-- Current:
Contractual services $233,770 $222,385 $11,385 $202,147
Assessing:
r Current:
Personal services 18,500 18,126 374 17,386
Planning and zoning:
_ Current:
Personal services 26,300 27,292 (992) 27,710
Materials and supplies 200 10 190 73
Contractual services 3,000 1,455 1,545 1,573
Total planning and zoning 29,500 28,757 743 29,356
Engineering:
Current:
Personal services 27,000 30,526 (3,526) 19,860
General contingency:
Current:
^ Contractual services 10,000 2,113 7,887 3,356
Total general government 839,400 769,032 70,368 785,319
X Public safety:
Police department:
Current:
Personal services 731,865 713,189 18,676 738,955
Materials and supplies 30,350 26,067 4,283 22,163
Contractual services 88,350 75,490 12,860 41,129
Total police department 850,565 814,746 35,819 802,247
Building inspections:
Current:
Personal services 100,830 91,662 9,168 99,776
Materials and supplies 2,270 2,331 (61) 1,665
Contractual services 7,025 7,653 (628) 5,949
Total building inspections 110,125 101,646 8,479 107,390
Fire protection:
Current:
Materials and supplies 2,000 2,000 - -
Contractual services 95,280 97,680 (2,400) 87,847
Total fire protection 97,280 99,680 (2,400) 87,847
39
CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL FUND Statement 7
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 4 of 5
IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2003
With Comparative Actual Amounts For The Year Ended December 31, 2002
2003
Favorable
(Unfavorable) 2002
Budget Actual Variance Actual
Expenditures: (continued)
Animal control:
Current:
Materials and supplies $150 $75 $75 $66
Contractual services 1,500 1,259 241 1,589
Total animal control 1,650 1,334 316 1,655
Total public safety 1,059,620 1,017,406 42,214 999,139
Public works:
Street maintenance:
Current:
Personal services 21,720 18,144 3,576 16,674
Materials and supplies 4,425 2,386 2,039 2,445
Contractual services 14,925 10,088 4,837 9,358
Total street maintenance 41,070 30,618 10,452 28,477
Snow removal: -•
Current:
Materials and supplies 2,000 147 1,853 1,098
Contractual services 65,300 56,552 8,748 35,761
Total snow removal 67,300 56,699 10,601 36,859
Street lighting:
Current:
Contractual services 48,000 44,803 3,197 42,153
Arborist:
Current:
Contractual services 10,350 10,297 53 11,758 ^
Materials and supplies 155 100 55 90
Total arborist 10,505 10,397 108 11,848
Tree removal and planting:
Current:
Contractual services 18,500 18,207 293 15,000
^
Total public works 185,375 160,724 24,651 134,337
40
CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL FUND Statement 7
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES Page 5 of 5
IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2003
With Comparative Actual Amounts For The Year Ended December 31, 2002
_ 2003
Favorable
(Unfavorable) 2002
Budget Actual Variance Actual
Expenditures: (continued)
x Recreation:
Parks, playgrounds and rinks:
-- Current:
Personal services $48,780 $46,852 $1,928 $45,466
Materials and supplies 4,000 3,332 668 4,070
Contractual services 48,375 45,634 2,741 38,396
Total recreation 101,155 95,818 5,337 87,932
Community development:
Current:
Personal services 18,350 17,192 1,158 101,568
Contractual services 6,680 615 6,065 8,481
Materials and supplies 2,100 1,989 111 2,191
Total community development 27,130 19,796 7,334 112,240
Total expenditures 2,212,680 2,062,776 149,904 2,118,967
Revenue over expenditures 289,044 563,047 274,003 356,986
Other financing sources (uses):
Operating transfers to Capital Project Fund (98,000) (109,165) (11,165) (112,375)
Operating transfers to Enterprise Fund (88,500) (88,500) - (88,500)
Total other financing sources (uses) (186,500) (197,665) (11,165) (200,875)
Net increase in fund balance $102,544 365,382 $262,838 156,111
Fund balance - January 1 1,329,229 1,173,118
Fund balance - December 31 $1,694,611 $1,329,229
41
CITY OF OAK PARK HEIGHTS, MINNESOTA
SPECIAL REVENUE FUNDS Statement 8
COMBINING BALANCE SHEET
December 31, 2003
With Comparative Totals For December 31, 2002
Forfeiture
and Economic Totals
Seizure Development 2003 2002
Assets
Cash and investments $32,754 $51,351 $84,105 $79,342
Total assets $32,754 $51,351 $84,105 $79,342
Liabilities and Fund Balance
Liabilities:
Due to other governments $121 $ - $121 $ -
Fund balance:
Unreserved:
Designated for special revenue programs 32,633 51,351 83,984 79,342
Total liabilities and fund balance $32,754 $51,351 $84,105 $79,342
42
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, 2003
With Comparative Totals For The Year Ended December 31, 2002
Forfeiture
and Economic Totals
Seizure Development 2003 2002
Revenue:
Intergovernmental $ - $ - $ - $7,170
Earnings on investments 986 1,599 2,585 2,938
Refunds and reimbursements 462 - 462 1,150
Confiscated property 4,122 - 4,122 13,595
Sale of municipal property 2,529 - 2,529 -
Total revenue 8,099 1,599 9,698 24,853
_ Expenditures:
Public safety:
Current:
Materials and supplies 1,361 - 1,361 1,218
Contractual services 1,327 - 1,327 929
Capital outlay 1,978 - 1,978 8,680
Community development:
Current:
Contractual services - 390 390 535
Total expenditures 4,666 390 5,056 11,362
Revenue over expenditures 3,433 1,209 4,642 13,491
_ Fund balance - January 1 29,200 50,142 79,342 65,851
Fund balance - December 31 $32,633 $51,351 $83,984 $79,342
-
43
CITY OF OAK PARK HEIGHTS, MINNESOTA
DEBT SERVICE FUNDS Statement 10
COMBINING BALANCE SHEET
December 31, 2003
With Comparative Totals For December 31, 2002
G.O. G.O. G.O
Refunding Refunding Improvement
Bonds Bonds Bonds Totals
of 2002 of 2001 of 1998 2003 2002
Assets
Cash and investments $360,864 $110,095 $114,717 $585,676 $585,304 r.
Taxes receivable:
Delinquent - 990 - 990 609
Due from County - 504 - 504 253
Special assessments:
Delinquent - 634 - 634 6,267
Deferred - 55,452 778,612 834,064 935,747
Due from County - 1,204 2,825 4,029 3,824
Total assets $360,864 $168,879 $896,154 $1,425,897 $1,532,004
Liabilities and Fund Balance
Liabilities:
Accounts payable $ - $ - $ - $ - $1,250
Deferred revenue - 57,076 778,612 835,688 942,623
Total liabilities 0 57,076 778,612 835,688 943,873
Fund balance:
Reserved for debt service 360,864 111,803 117,542 590,209 588,131
Total liabilities and fund balance $360,864 $168,879 $896,154 $1,425,897 $1,532,004
44
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, 2003
With Comparative Totals For The Year Ended December 31, 2002
G.O. G.O G.O.
Refunding Refunding Improvement
Bonds Bonds Bonds Totals
of 2002 of 2001 of 1998 2003 2002
Revenue:
General property taxes:
Current and delinquent $ - $59,191 $ - $59,191 $53,812
Special assessments:
Current and delinquent - 34,096 127,680 161,776 158,858
Prepayments - 2,116 - 2,116 5,555
Penalties and interest - 191 1,415 1,606 469
Intergovernmental - - - - 3,050
Earnings on investments 10,235 4,810 3,443 18,488 26,112
Total revenue 10,235 100,404 132,538 243,177 247,856
Expenditures:
Debt service:
Principal 135,000 125,000 150,000 410,000 895,000
Interest 11,356 10,763 58,462 80,581 114,618
Paying agent fees - - - - 3,810
Total expenditures 146,356 135,763 208,462 490,581 1,013,428
.. Revenue over (under) expenditures (136,121) (35,359) (75,924) (247,404) (765,572)
Other financing sources:
Refunding bonds issued - - - - 510,000
Discount on debt issued - - - - (7,650)
Operating transfer from Capital Project Fund 165,000 - 84,482 249,482 221,734
Total other financing sources 165,000 0 84,482 249,482 724,084
Net increase (decrease) in fund balance 28,879 (35,359) 8,558 2,078 (41,488)
Fund balance - January 1 331,985 147,162 108,984 588,131 629,619
Fund balance - December 31 $360,864 $111,803 $117,542 $590,209 $588,131
45
CITY OF OAK PARK HEIGHTS, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
December 31, 2003
With Comparative Totals For December 31, 2002
Budgeted _
Projects
Capital and
Revolving Equipment Superamerica Park Street
Fund Revolving Valvoline Oil Development Reconstruction
Assets
Cash and investments $423,629 $275,237 $12,108 $315,204 $394,666
Due from other governmental units - - - - -
Due from developers - - - - -
Taxes receivable: _
Delinquent 7 - - - -
Special assessments receivable:
Deferred 6,416 - - - -
Total assets $430,052 $275,237 $12,108 $315,204 $394,666
Liabilities and Fund Balance
Liabilities:
Cash overdraft $ - $ - $ - $ - $ -
Escrow deposits payable - - 9,347 - -
Accounts payable - 30,713 - - -
Contracts payable - -
Deferred revenue 6,423 - - - Total liabilities 6,423 30,713 9,347 0 0
Fund balance:
Unreserved:
Designated for capital improvement 423,629 244,524 2,761 315,204 394,666
Designated for committed contracts - - - - - "
Undesignated - - - - -
Total fund balance 423,629 244,524 2,761 315,204 394,666
Total liabilities and fund balance $430,052 $275,237 $12,108 $315,204 $394,666
46
r
Statement 12
AAE
Brekke Oak Park Sanitary Storm
Renewal and Park McKean Station Sewer Water Sewer Totals
Replacement Memorial Square Phase I Connection Connection Connection 2003 2002
$2,191,864 $223 $ - $ - $411,691 $253,542 $930,231 $5,208,395 $4,391,079
- _ _ - - - - 1,125
45,245 5,439 - - - 50,684 5,931
- - - - - 7 20
- - - - 25,855 45,004 56,959 134,234 255,132
$2,191,864 $223 $45,245 $5,439 $437,546 $298,546 $987,190 $5,393,320 $4,653,287
$ - $ - $240 $ - $ - $ - $ - $240 $1,602
- - - - - 9,347 9,347
- 1,620 - - - - 32,333 5,699
- - 43,385 5,439 5,706 - - 54,530 7,053
- - - - 25,855 45,004 56,959 134,241 255,152
0 0 45,245 5,439 31,561 45,004 56,959 230,691 278,853
2,191,864 223 - - 405,985 253,542 930,231 5,162,629 4,367,526
- - - - - - - - 7,098
- - - - - - - - (190)
2,191,864 223 0 0 405,985 253,542 930,231 5,162,629 4,374,434
$2,191,864 $223 $45,245 $5,439 $437,546 $298,546 $987,190 $5,393,320 $4,653,287
47
CITY OF OAK PARK HEIGHTS, MINNESOTA
CAPITAL PROJECT FUNDS Statement 13
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND Page 1 of 2
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2003
With Comparative Totals For The Year Ended December 31, 2002
Budgeted
Projects
Capital and
_ Revolving Equipment Superamerica/ Park
Fund Revolving Valvoline Oil Development
Revenue:
General property taxes -
current and delinquent $12 $ - $ - $ -
Special assessments:
Current and delinquent 83,880 - - -
Earnings on investments 11,349 5,874 376 10,265
Connection charges - - - -
Direct charges to developers - - - -
,_ Refunds and reimbursements 77 5,750 - -
Donations and contributions - 2,605 - 19,600
Sale of equipment - 8,188 - -
Total revenue 95,318 22,417 376 29,865
Expenditures:
Public works:
Materials and supplies - 4,039 - 40,135
Contractual services 16,319 6,827 40 4,000
Capital outlay - 60,157 - -
Construction costs - - - -
Total expenditures 16,319 71,023 40 44,135
Revenue over (under) expenditures 78,999 (48,606) 336 (14,270)
Other financing sources (uses):
_ Operating transfers from General Fund - 108,975 - -
Operating transfers from Enterprise Fund - 9,900 - -
Operating transfers to Debt Service Fund - - - -
Total other financing sources (uses) 0 118,875 0 0
Net increase (decrease) in fund balance 78,999 70,269 336 (14,270)
Fund balance (deficit) - January 1 344,630 174,255 2,425 329,474
Fund balance - December 31 $423,629 $244,524 $2,761 $315,204
49
CITY OF OAK PARK HEIGHTS, MINNESOTA
CAPITAL PROJECT FUNDS �.
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2003 r ,
With Comparative Totals For The Year Ended December 31, 2002
Central Brekke
Street Renewal and Business Park McKean _
Reconstruction Replacement District Memorial Square
Revenue:
General property taxes -
current and delinquent $ - $ - $ _ $ _ $ _
Special assessments:
Current and delinquent
Earnings on investments 12,236 64,356 - 7 -
Connection charges - _
Direct charges to developers - - - - 944,351
Refunds and reimbursements - - _ _ _
Donations and contributions - -
Sale of equipment - _ _ _ _
Total revenue 12,236 64,356 0 7 944,351
Expenditures:
Public works:
Materials and supplies - 9,345 - - -
Contractual services - 7,993 - - -
Capital outlay - _ _ _ -
Construction costs - 43,266 - - 944,351
Total expenditures 0 60,604 0 0 944,351
Revenue over (under) expenditures 12,236 3,752 0 7 0
Other financing sources (uses):
Operating transfers from General Fund - - 190 - -
Operating transfers from Enterprise Fund - 148,666
Operating transfers to Debt Service Fund - -
Total other financing sources (uses) 0 148,666 190 0 0
Net increase (decrease) in fund balance 12,236 152,418 190 7 0
Fund balance (deficit) - January 1 382,430 2,039,446 (190) 216 - —.
Fund balance - December 31 $394,666 $2,191,864 $0 $223 $0
^
50
Statement 13
Page 2 of 2
AAE
Oak Park Sanitary Storm
_ Kern Boutwells Station Sewer Water Sewer Totals
Center Landing Phase I Connection Connection Connection 2003 2002
$ - $ - $ - $ - $ - $ - $12 $9
- - - 8,618 15,001 18,986 126,485 88,957
120 - - 12,220 8,002 25,657 150,462 170,062
- 151,669 234,296 384,442 770,407 199,880
166 8,809 - - - 953,326 149,370
- - - - - - 5,827 14,888
- - - - - - 22,205 93,700
- - - - - - 8,188 -
120 166 8,809 172,507 257,299 429,085 2,036,912 716,866
- - - - - - 53,519 9,669
298 166 - - - 117,500 153,143 75,536
- - - - - - 60,157 52,975
- - 8,809 3,721 - - 1,000,147 203,600
298 166 8,809 3,721 0 117,500 1,266,966 341,780
(178) 0 0 168,786 257,299 311,585 769,946 375,086
_ - - - - - - 109,165 112,375
- - - - - 158,566 153,547
(4,482) - - (70,400) (149,000) (25,600) (249,482) (221,734)
(4,482) 0 0 (70,400) (149,000) (25,600) 18,249 44,188
(4,660) 0 0 98,386 108,299 285,985 788,195 419,274
4,660 - - 307,599 145,243 644,246 4,374,434 3,955,160
$0 $0 $0 $405,985 $253,542 $930,231 $5,162,629 $4,374,434
51
CITY OF OAK PARK HEIGHTS, MINNESOTA
ENTERPRISE FUNDS Statement 14
BALANCE SHEET
December 31, 2003
With Comparative Amounts for December 31, 2002
Assets
2003 2002
Current assets:
Cash and cash equivalents $523,193 $407,153
Accounts receivable:
Customers 166,966 153,107
Certified to County 14,257 13,445 ^
Other 998 118
Prepaid items 22,339 26,173
Total current assets 727,753 599,996
Fixed assets:
Land 60,000 60,000
Buildings and structures 1,320,334 1,267,723
Machinery and equipment 205,039 196,869
Distribution and collection system 6,454,890 6,403,368
Total 8,040,263 7,927,960
Less: Allowance for depreciation (2,298,009) (2,142,680)
Net fixed assets 5,742,254 5,785,280
Total assets $6,470,007 $6,385,276
Liabilities and Fund Equity
Current liabilities:
Accounts payable $19,904 $27,322
Salaries payable 1,376 2,242 --
Due to other governmental units 3,326 7,824
Total current liabilities 24,606 37,388
Noncurrent liabilities: ...
Compensated absences payable 35,544 37,367
Total liabilities 60,150 74,755
Fund equity:
Contributed capital 5,252,271 5,400,937
Retained earnings:
Reserved for debt service reserve 200,000 200,000
Unreserved 957,586 709,584
Total fund equity 6,409,857 6,310,521
Total liabilities and fund equity $6,470,007 $6,385,276
s
52
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, 2003
With Comparative Totals For The Year Ended December 31, 2002
_. Water Sewer Storm Sewer Totals
Operating Operating Sanitation Operating 2003 2002
Revenue:
Customer billings $350,549 $522,652 $97,970 $68,568 $1,039,739 $975,760
Penalties 5,878 8,173 - - 14,051 11,309
Plumbing permits 4,980 2,660 - - 7,640 1,635
Meter sales 17,733 - - - 17,733 5,725
r- Charges for services 7,161 7,102 - - 14,263 3,222
Total operating revenue 386,301 540,587 97,970 68,568 1,093,426 997,651
Expenses:
Personal services 121,253 81,489 - 11,070 213,812 231,424
Contractual services 72,253 42,154 163,523 15,011 292,941 355,966
Refunds and reimbursements - 500 - - 500 -
Recycling award - - 600 - 600 606
MCES charges - 274,430 - - 274,430 257,783
Materials and supplies 8,936 3,061 - 498 12,495 9,887
Administrative and personnel charge 23,275 41,840 16,890 5,200 87,205 89,780
Depreciation:
On purchased assets 11,537 3,017 - - 14,554 13,843
.. On contributed assets 78,066 70,600 - - 148,666 145,947
Total operating expenses 315,320 517,091 181,013 31,779 1,045,203 1,105,236
Operating income (loss) $70,981 $23,496 ($83,043) $36,789 48,223 (107,585)
Nonoperating revenue (expenses):
Earnings on investments 17,045 18,941
Capital contributions 104,134 147,920
Loss on disposal of fixed assets - (7,312)
Total nonoperating revenue (expenses) 121,179 159,549
Net income before operating transfers 169,402 51,964
�- Other financing sources (uses):
Operating transfer from General Fund 88,500 88,500
Operating transfer to Capital Project Funds (158,566) (153,547)
Total other financing sources (uses) (70,066) (65,047)
Net income (loss) 99,336 (13,083)
.r Other increases:
Credit arising from transfer of depreciation to contributed capital 148,666 145,947
Net increase in retained earnings 248,002 132,864
Retained earnings - January 1 909,584 776,720
Retained earnings - December 31 $1,157,586 $909,584
53
CITY OF OAK PARK HEIGHTS, MINNESOTA
ENTERPRISE FUNDS Statement 16
STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2003
With Comparative Amounts For The Year Ended December 31, 2002
2003 2002
Cash flows from operating activities:
Operating income (loss) $48,223 ($107,585)
Adjustments to reconcile operating income (loss) to
net cash flows from operating activities:
Depreciation 163,220 159,790
Prior period adjustment (5,390) -
Change in assets and liabilities:
Decrease (increase) in receivables (15,551) (26,329)
Decrease (increase) in prepaid expenses 3,834 (2,474)
Increase (decrease) in payables (14,605) 13,636
Net cash flows from operating activities 179,731 37,038
s
Cash flows from noncapital financing activities:
Operating transfers from other funds 88,500 88,500
Operating transfers to other funds (158,566) (153,547)
Net cash flows from noncapital financing activities (70,066) (65,047)
Cash flows from capital and related financing activities: .+
Acquisition of fixed assets (10,670) (8,803)
Cash flows from investing activities:
Earnings on investments 17,045 18,941
Net increase (decrease) in cash and cash equivalents 116,040 (17,871)
Cash and cash equivalents - January 1 407,153 425,024
Cash and cash equivalents - December 31 $523,193 $407,153
Significant noncash investing, capital and financing activities: ,.
During 2003 and 2002, fixed assets were contributed to the Enterprise Fund as follows:
2003 2002
Water Operating Fund $43,267 $123,192 ..
Sewer Operating Fund 60,867 24,728
Total $104,134 $147,920
r
r
b.
r
54
CITY OF OAK PARK HEIGHTS, MINNESOTA
AGENCY FUNDS Statement 17
COMBINING BALANCE SHEET
December 31, 2003
With Comparative Totals For December 31, 2002
Developer Developer
Deposit Escrow Investment Totals
Fund Fund Fund 2003 2002
Assets
Cash and investments $12,137 $13,000 $ - $25,137 $30,574
Special assessments - deferred 5,555 - - 5,555 -
�- Accrued interest receivable - - 135,480 135,480 164,379
Due from developers 17,334 - - 17,334 19,460
Total assets $35,026 $13,000 $135,480 $183,506 $214,413
Liabilities
r. Cash overdraft $ - $ - $135,480 $135,480 $164,379
Escrow deposits payable - 13,000 - 13,000 14,000
Accounts payable 9,397 - - 9,397 6,541
Due to developers 25,629 - - 25,629 29,493
Total liabilities $35,026 $13,000 $135,480 $183,506 $214,413
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55
CITY OF OAK PARK HEIGHTS, MINNESOTA
AGENCY FUNDS Statement 18
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For The Year Ended December 31, 2003
Balance Balance
January 1, December 31,
2003 Additions Deletions 2003
Developer Deposit Fund:
Assets:
Cash and investments $16,574 $12,137 $16,574 $ 12,137
Special assessments - deferred - 5,555 - 5,555
Due from developers 19,460 17,334 19,460 17,334 +
Total assets $36,034 $35,026 $36,034 $35,026
Liabilities:
Accounts payable $6,541 $9,397 $6,541 $9,397
Due to developers 29,493 25,629 29,493 25,629
Total liabilities $36,034 $35,026 $36,034 $35,026
Developer Escrow Fund:
Assets:
Cash and investments $14,000 $13,000 $14,000 $13,000
Liabilities:
Escrow deposits payable $14,000 $13,000 $14,000 $13,000
Investment Fund:
Assets:
Accrued interest receivable $164,379 $135,480 $164,379 $135,480
Liabilities: -
Cash overdraft $164,379 $135,480 $164,379 $135,480
Total Aeencv:
Assets:
Cash and investments $30,574 $25,137 $30,574 $25,137
Special assessments - deferred - 5,555 - 5,555 �.
Accrued interest receivable 164,379 135,480 164,379 135,480
Due from developers 19,460 17,334 19,460 17,334
Total assets $214,413 $183,506 $214,413 $183,506
Liabilities:
Cash overdraft $164,379 $135,480 $164,379 $135,480
Escrow deposits payable 14,000 13,000 14,000 13,000
Accounts payable 6,541 9,397 6,541 9,397
Due to developers 29,493 25,629 29,493 25,629
Total liabilities $214,413 $183,506 $214,413 $183,506
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CITY OF OAK PARK HEIGHTS, MINNESOTA
SCHEDULE OF GENERAL FIXED ASSETS Statement 19
For The Year Ended December 31, 2003
r. Balance Balance
January 1, December 31,
Description 2003 Additions Deletions Adjustments 2003
Land $1,203,690 $ - $ - ($20,000) $1,183,690
Land improvements 499,601 88,000 - - 587,601
Buildings and structures 1,165,981 - - (15,437) 1,150,544
Machinery and equipment 379,026 61,290 (31,987) 42,067 450,396
Furniture and fixtures 237,334 31,229 (55,267) - 213,296
Totals $3,485,632 $180,519 ($87,254) $6,630 $3,585,527
57
CITY OF OAK PARK HEIGHTS, MINNESOTA
SCHEDULE OF GENERAL LONG -TERM DEBT Statement 20 ,.
December 31, 2003
With Comparative Amounts For December 31, 2002
2003 2002
Amount Available And To Be Provided For The
Retirement of Long -Term Debt
Bonds:
Amount available in Debt Service Funds $590,209 $588,131
Amount to be provided from future tax levies/
special assessment collections, and connection charges 1,300,413 1,713,560
Compensated absences:
Amount available in General Fund 128,458 122,365
Total available and to be provided $2,019,080 $2,424,056
General Long -Term Debt Payable
Bonds payable:
General Obligation Bonds:
G.O. Refunding Bonds of 2002 $375,000 $510,000
Special Assessment Bonds:
G.O. Improvement Bonds of 1998 1,250,000 1,400,000
G.O. Refunding Bonds of 2001 235,000 360,000
Total bonds payable 1,860,000 2,270,000
Compensated absences payable 159,080 154,056
Total general long -term debt payable $2,019,080 $2,424,056
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SUPPLEMENTARY FINANCIAL INFORMATION
^ 59
CITY OF OAK PARK HEIGHTS, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS Exhibit 1 _
December 31, 2003
Final Net Bonds Principal Interest
Payment Interest Authorized Retired Outstanding Due Due
Date Due Rate And Issued To Date At 12/31/03 In 2004 In 2004
Bonded indebtedness:
General debt:
G.O. Refunding Bonds of 2002 11/01/02 12/01/06 2.19% $510,000 $135,000 $375,000 $150,000 $8,323
Special assessments bonds:
G.O. Improvement Bonds of 1998 10/01/98 12/01/13 4.19% 1,990,000 740,000 1,250,000 125,000 52,688
G.O. Refunding Bonds of 2001 11/01/01 12/01/05 2.98% 490,000 255,000 235,000 125,000 7,325
Total bonded indebtedness 2,990,000 1,130,000 1,860,000 400,000 68,336
Compensated absences payable - - 194,624 - -
Total City indebtedness $2,990,000 $1,130,000 $2,054,624 $400,000 $68,336
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60
CITY OF OAK PARK HEIGHTS, MINNESOTA
_ REVENUE BONDS AND GENERAL DEBT BONDS Exhibit 2
SCHEDULE OF DEBT SERVICE PAYMENTS TO MATURITY
December 31, 2003
General Debt Bonds
General General General
Obligation Obligation Obligation
Refunding Improvement Refunding
Bonds of 2002 Bonds of 1998 Bonds of 2001 Total
Bonds payable $375,000 $1,250,000 $235,000 $1,860,000
Future interest payable 15,368 296,000 10,900 322,268
Totals $390,368 $1,546,000 $245,900 $2,182,268
_ Payments to maturity:
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 $390,368 $1,546,000 $245,900 $2,182,268
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CITY OF OAK PARK HEIGHTS, MINNESOTA
FUTURE SCHEDULED TAX LEVIES Exhibit 3 _
December 31, 2003
Year Of G.O. Refunding
Collection Bonds of 2001
r
2004 $62,000
2005 62,000
Totals $124,000
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62
CITY OF OAK PARK HEIGHTS, MINNESOTA
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Exhibit 4
2003/2004 2002/2003
Taxable valuations:
Real estate $6,363,354 $5,895,692
Personal property 82,573 78,851
Subtotal 6,445,927 5,974,543
Fiscal disparity:
Contribution (798,048) (657,651)
Distribution 313,675 253,076
Total $5,961,554 $5,569,968
Tax levy:
City-wide:
General revenue $1,992,690 $1,931,003
Debt service 61,380 62,000
Total tax levy $2,054,070 $1,993,003
Tax capacity rate:
City-wide:
General revenue 33.355% 34.695%
Debt service 1.027% 1.104%
Total 34.382% 35.799%
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CITY OF OAK PARK HEIGHTS, MINNESOTA
SCHEDULE OF CONSTRUCTION COSTS Exhibit 5 _
December 31, 2003
Legal Expended
and Current Prior
Contractor Engineer Fiscal Other Total Year Years
Oak Park Station Phase 1 $108,775 $34,239 $653 $285 $143,952 $8,809 $135,143
60th Street Sewer force main 43,429 7,900 193 - 51,522 3,721 47,801
McKean Square 747,128 178,466 2,131 16,626 944,351 944,351 -
Renewal and Replacement:
Well No. 1 maintenance 39,215 4,051 - - 43,266 43,266 -
Total - All Funds $938,547 $224,656 $2,977 $16,911 $1,183,091 $1,000,147 $182,944
64 ..
STATISTICAL SECTION
.o
65
CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL AND SPECIAL REVENUE FUNDS Table I
EXPENDITURES BY FUNCTION
Years 1994 Through 2003
(UNAUDITED)
General Public Public Community Capital
Year Total Government Safety Works Sanitation Recreation Development Outlay
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 .,
2003 2,067,832 769,032 1,020,094 160,724 - 95,818 20,186 1,978
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CITY OF OAK PARK HEIGHTS, MINNESOTA
GENERAL AND SPECIAL REVENUE FUNDS Table 2
REVENUE BY SOURCE
Years 1994 Through 2003
(UNAUDITED)
Licenses Charges Fines Earnings
Inter- and for and on
Year Total Taxes governmental Permits Services Forfeits Investments Miscellaneous
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
2003 2,635,521 1,859,203 79,171 313,273 209,076 61,146 34,652 79,000
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CITY OF OAK PARK HEIGHTS, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS Table 3
Years 1994 Through 2003
(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
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%
2003 1,993,003 1,891,046 94.88% 12,386 1,903,432 95.51% (2 31,552 1.58%
( ` ) 1996 through 2001 excludes HACA. 2002 and 2003 excludes the Market Value Homestead Credit.
(z) Current tax collections do not include market value homestead credit of $88,486. This amount was not paid by the
State of Minnesota. The adjusted collection rate for 2003 is 99.9 %.
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CITY OF OAK PARK HEIGHTS, MINNESOTA
_. SPECIAL ASSESSMENT COLLECTIONS Table 4
Years 1994 Through 2003
(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
1994 $46,145 $45,729 99.10% $35 99.17% $2,486
1995 47,191 43,888 93.00% 1,021 95.16% 2,282
1996 139,628 136,958 98.09% 1,071 98.85% 4,163
1997 166,723 162,433 97.43% 1,743 98.47% 6,582
1998 109,134 106,924 97.97% 2,503 100.27% 6,083
1999 416,712 414,520 99.47% 1,493 99.83% 6,782
r 2000 333,294 332,190 99.67% 1,647 100.16% 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
2003 246,290 239,390 97.20% 6,267 99.74% 634
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CITY OF OAK PARK HEIGHTS, MINNESOTA
PRINCIPAL TAXPAYERS (Ten Largest Taxpayers) Table 5
Taxes Payable in 2003
(UNAUDITED)
Percent of Percent of _
Total Net Total Tax
Market Market Tax Capacity Property
Taxpayer Value Value Capacity Value Classification
Xcel Energy Inc $79,770,000 19.6% $1,593,668 26.7% Electric Utilities
VSSA Housing 24,159,000 5.9% 356,714 6.0% Res. over 4 units —
Prudential Insurance Co. of America 10,215,300 2.5% 203,556 3.4% Commercial
SC Mall LLC 10,237,500 2.5% 203,250 3.4% Commercial —
Menards, Inc 8,043,800 2.0% 160,126 2.7% Commercial
Wal -Mart Real Estate Business 6,086,400 1.5% 120,978 2.0% Commercial
W.A.T.E. Enterprises, Inc. 4,382,000 1.1% 86,890 1.5% Commercial
Raduenz Dealership Properties LLC 4,155,100 1.0% 81,602 1.4% Commercial
Stillwater Ford, Lincoln - Mercury 3,698,400 0.9% 73,218 1.2% Commercial
Jerden LLC 3,008,500 0.7% 57,920 1.0% Commercial —
Totals $153,756,000 37.8% $2,937,922 49.2%
Total City $406,640,800 $5,974,543
SOURCE: Washington County Auditor - Treasurer Taxation Division.
NOTES:
(1) This list is based only on parcels paying more than $2,000 net tax
(2) If a taxpayer has property consisting of more than one classification, only one is shown.
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