HomeMy WebLinkAbout2004 Audit Review April 12, 2005 Cit y of
Oak Park Heights
Minnesota
2004 Audit Review
April 12, 2005
n tr r� TOUVOs R
Reports Issued
2 Teu#ses
Annual Financial Report
♦ The financial statements are
the responsibility of
management
♦ Independent auditor reports
on the fair presentation of
the financial statements
♦ "Clean opinion" on the 2004
financial statements
♦ Financial statements
conform to GASB 34
To' ,.�
Annual Financial Report
♦ Statement of Activities
Program Revenues Net (Expense) Revenue and
Operating Capital Changes in Net Assets
Charges For Grants and Grants and Governmental Business -Type
FunctionstProgmms Expenses Services Contributions Contributions Activities Activities Total
Government activities:
General government 77124073 , $250 $ ($708,286) $ ($708,286)
Public safety 1,155,243 480,163 67,377 (607,703) (607,703)
Public works 602,111 344,397 731 212,635 (44,348) (44,348)
Parks and recreation 123,737 - - - (123,737) (123,737)
Interest on long -term debt 67,365 - - - (67,365) (67,365)
Total government activities 2,781,065 948,633 68,358 212,635 (1,551,439) 0 (1,551,439)
Business -type activities:
Water 323,527 388,198 32,843 97,514 97,514
Sanitary sewer 517,595 577,253 - 25,863 85,521 85,521
Sanitation 167,258 96,909 - (70,349) (70,349)
Storm sewer 41,082 70,878 - 29,796 29,796
Total business -type activities 1,049,462 1,133,238 0 58,706 0 142,482 142,482
Total E3,830,527 - ,.. $2,081,871 $271,341 (1,551,439) 142,482 (1,408,957)
General revenues:
General property taxes 1,979,288 - 1,979,288
Grants and contributions not
restricted to specific programs 3,060 - 3,060
Unrestricted investment earnings 199,737 19,148 218,885
Other 29,125 - 29,125
Transfers 90,423 (90,423) -
Total general revenues and transfers 2,301,633 (71,275) 2,230,358
Change in net assets 750,194 71,207 821,401
Net assets - beginning 17,828,506 6,409,857 24,238,363
Netassets - ending $18,578,700 $6,481,064 $25,059,764
or Includes General Fund, Special Revenue, Debt Service and Capital Project Funds.
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Minnesota
Legal Compliance Report
♦ Required by Minnesota Statute
§6.65
♦ OSA established a task force to
develop audit guide for legal
compliance
♦ Audit guide covers six categories
1) contracting and bidding
2) deposits and investments
3) conflicts of interest
4) public indebtedness
5) claims and disbursement
6) other miscellaneous provisions
♦ One finding for 2004
................
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ayaeerefr�r�o4nraon� 5 � r'uey� A
Report on Internal Control
♦ Required by audit standards
♦ Based on inquiries and
observations
♦ Identifies reportable conditions
♦ Reportable condition defined as
"significant deficiencies in the design or
operation of the internal control over financial
reporting that would adversely affect the
City's ability to record, process, summarize,
and report financial data"
♦ No reportable conditions noted
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Management Letter
+All Funds Summary:
All Funds Financial Summary - 2004
Increase
(Decrease) in Fund Balance/
Revenue Expenditures Fund Balance/ Net
and Other and Other Transfers Net Assets
Fund Sources Uses (Net) Assets 12/31/2004
General $2,644,010 $2,177,713 ($313,300) $152,997 $1,847,608
Special Revenue Funds:
Forfeiture and Seizure 11,472 15,262 - (3,790) 28,843
Economic Development 1,441 468 - 973 52,324
Debt Service Funds:
Bonds of 1998 9,476 158,322 55,000 (93,846) 267,018
Bonds of 2001 95,054 132,325 - (37,271) 74,532
Bonds of 2002 118,289 177,687 55,000 (4,398) 113,144
Capital Project Funds:
Capital Revolving 125,993 184,542 - (58,549) 365,080
Budgeted Projects and Equipment Revo 27,951 126,096 249,700 151,555 396,079
SA / Valvoline Oil (2,761) - - (2,761) -
Park Development 8,871 - - 8,871 324,075
Street Reconstruction 11,108 - - 11,108 405,774
Renewal and Replacement 61,689 - 154,023 215,712 2,407,576
Brekke Park Memorial 6 - - 6 229
Water Tower Rental 8,349 - - 8,349 8,349
Boutwells Landing 5,780 5,780 - - -
McKean Square 357,503 357,503 - - -
Oak Park Station - Phase I 10,958 10,958 - - -
Santiary Sewer Sewer Connection 20,037 - (32,775) (12,738) 393,247
Water Connection 22,118 - (59,625) (37,507) 216,035
Storm Sewer Connection 45,240 92,581 (17,600) (64,941) 865,290
Enterprise Funds:
Water 430,615 323,527 (93,193) 13,895 3,482,438
Sanitary Sewer 612,690 517,595 (82,430) 12,665 2,950,716
Sanitation %,909 167,258 88,500 18,151 (34,558)
Storm Sewer 70,878 41,082 (3,300) 26,4% 82,468
Total $4,793,676 $4,488,699 $0 $304,977 $14,246,267
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Management Letter
♦ Summary:
— General Fund:
• Fund balance increased $153,000
during 2004.
Bud et Actual Variance
Revenue /transfers in $2,487,556 $2,644,010 $156,454
Expenditures/transfers out 2,487,050 2,491,013 (3,963)
Increase in fund balance $506 $152,997 $152,491
• Fund balance at December 31,
2004 was $1,847,000
Management Letter
• Fund balance at December 31,
2004 was sufficient to fulfill all city
policy reserve requirements.
General Fund Balance
December 31,
2003 2004
Designated for:
Cash flow $996,000 $1,147
Contingent employee benefits 128 133,961
General contingency 368,000 419,000
Subtotal - designated 1,492 1,699,961
Undesignated 202,153 147,647
Total fund balance $1,694 $1
Tautges
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Management Letter
General Fund Monthly Cash Balances
$2,000,000
$1,800,000
$ 1,600,000
$1,400,000
$948,000
$1,200,000 decreasc
$1,000,000
$800,000
$600,000
$400,000
$200,000
S0 11112004 113112004 2/28/2004 3/31/2004 1 4/30/2004 5/31/2004 1 6/30/2004 7/31/2004 8/31/2004 9/30/2004 10/31/2004 11/30/2004 12/31/2004
INS"iesl 51,663,000 $1,536,336 $1,479,076 $1,312,098 $1,181,505 I $1,005,264 $817,453 $1,718,088 $1,655,950 $1,503,488 I $1,425,098 $1,322,837 $1,818,367
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Management Letter
Fund Balance
$2,000,000
$1,800,000
$1,600,000 /
� r
$1,400,000
-+—Actual Fund Balance
$1,200,000 _ Desired Fund Balance
$1,000,000
$800,000
$600,000
1997 1998 1999 2000 2001 2002 2003 2004
Management Letter
— Debt Service Funds:
• Three bond issues outstanding
totaling $1.46 million.
Outstanding
Bond Issue Maturity Date Balance
Bonds of 1998 12/1/2013 $1,125,000
Bonds of 2001 12/1/2005 110,000
Bonds of 2002 12/1/2006 225,000
Total $1,460,000
A
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Management Letter
— Capital Proiect Funds:
• Connection Charge Funds - a
summary is as follows:
Sanitary Water Storm
Sewer Works Water Total
Fund balance - December 31, 2004 $393,247 $216,035 $865,290 $1,474,572
Future connection charges (est.) 249,220 433,590 549,020 1,231,830
Subtotal 642,467 649,625 1,414,310 2,706,402
Debt service commitments:
Bonds of 1998 (217,150) (75,250) (137,600) (430,000)
Project commitments:
Kern Center pond - - (250,000) (250,000)
Subtotal 425,317 574,375 1,026,710 2,026,402
Available for new well - (574,375) - (574,375)
Uncommitted $425,317 $0 $1,026,710 $1,452,027
F —�yZtia
13 Tautges
Management Letter
- Enterprise Funds:
Net Income By Year
Sanitary Storm
Year Water Sewer Sanitation Sewer Total
2004 $13,895 $12,665 $18,151 $26,496 $71,206
2003 117,821 87,935 5,457 36,789 248,002
2002 41,573 81,542 3,955 5,794 132,864
2001 41,643 (5,994) (3,604) 5,875 37,920
2000 65,051 (80,152) (255) (4,765) (20,121)
1999 49,552 (111,811) (32,625) 12,279 (82,605)
1998 (31,669) (38,145) (25,637) - (95,451)
1997 11,294 50,550 - - 61,844
1996 26,964 (6,551) - - 20,413
1995 54,581 (2,359) - - 52,222
1994 (302,719) (198,539) - - (501,258)
1993 73,349 40,156 - - 113,505
(1) Amount shown is after General Fund transfer of $88,500.
F nd 4 Tautges '
Management Letter
— Other Items:
• Collection rates:
— Property taxes 99%
— Special assessments 99%
• Tax capacity rates:
—2003 35.799%
—2004 34.382%
—2005 36.488%
• Comparison to other communities —
2004 tax rate:
— Oak Park Heights 34.382%
— Stillwater 51.951%
— Bayport 47.538%
— Lake Elmo 19.315%
— Mahtomedi 32.157%
5 Tautgo*