HomeMy WebLinkAbout2011 Annual Financial Report
CITY OF OAK PARK HEIGHTS, MINNESOTA
ANNUAL FINANCIAL REPORT
December 31, 2011
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CITY OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
ReferenceNo.
INTRODUCTORY SECTION
Elected and Appointed Officials3
FINANCIAL SECTION
Independent Auditor's Report7
Management's Discussion and Analysis9
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net AssetsStatement 123
Statement of ActivitiesStatement 224
Fund Financial Statements:
Balance Sheet - Governmental FundsStatement 326
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental FundsStatement 428
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds Statement 530
Statement of Net Assets - Proprietary FundsStatement 631
Statement of Revenues, Expenses and Changes in Fund Net Assets -
Proprietary FundsStatement 732
Statement of Cash Flows - Proprietary FundsStatement 833
Statement of Fiduciary Net Assets - Agency FundsStatement 934
Notes to Financial Statements35
Required Supplementary Information:
Budgetary Comparison Schedule - General FundStatement 1064
Schedule of Funding Progress - Retiree Health Plan69
Budgetary Comparison Schedule - Note to RSI70
Combining and Individual Nonmajor Fund Financial Statements:
Combining Balance Sheet - Nonmajor Governmental FundsStatement 1174
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental FundsStatement 1275
CITY OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
ReferenceNo.
Subcombining Balance Sheet - Nonmajor Special Revenue FundsStatement 1376
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue FundsStatement 1477
Subcombining Balance Sheet - Nonmajor Debt Service FundsStatement 1578
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service FundsStatement 1679
Subcombining Balance Sheet - Nonmajor Capital Project FundsStatement 1780
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project FundsStatement 1882
Agency Funds:
Subcombining Balance SheetStatement 1984
Subcombining Statement of Changes in Assets and LiabilitiesStatement 2085
STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Assets by Component - Last Eight Fiscal YearsTable 188
Changes in Net Assets - Last Eight Fiscal YearsTable 290
Fund Balances, Governmental Funds - Last Ten Fiscal YearsTable 394
Changes in Fund Balances, Governmental Funds - Last Eight Fiscal YearsTable 496
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of Taxable PropertyTable 598
Direct and Overlapping Property Tax Capacity RatesTable 699
Principal Property TaxpayersTable 7100
Property Tax Levies and CollectionsTable 8101
Debt Capacity:
Ratios of Outstanding Debt by TypeTable 9102
Direct and Overlapping Governmental Activities DebtTable 10103
Legal Debt Margin InformationTable 11104
Pledged Revenue CoverageTable 12105
Demographic and Economic:
Demographic and Economic StatisticsTable 13106
Principal EmployersTable 14107
Operating Information:
Full-Time Equivalent City Government Employees By Function/ProgramTable 15108
Operating Indicators by Function/ProgramTable 16110
Capital Asset Statistics by Function/ProgramTable 17112
INTRODUCTORY SECTION
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CITY OF OAK PARK HEIGHTS, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
December 31, 2011
Term Expires
Mayor:
David BeaudetDecember 31, 2012
Councilmembers:
Les AbrahamsonDecember 31, 2014
Mary McComberDecember 31, 2012
Mike RunkDecember 31, 2012
Mark SwensonDecember 31, 2014
Administrator:
Eric JohnsonAppointed
Finance Director:
Betty CarusoAppointed
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FINANCIAL SECTION
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Oak Park Heights, Minnesota (the City) we offer readers of
the City’s financial statements this narrative overview and analysis of the financial activities
of the City for the fiscal year ended December 31, 2011.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$34,593,380 (Net assets). Of this amount, $15,094,368 (unrestricted net assets) may be used
to meet the government’s ongoing obligations to citizens and creditors in accordance with the
City's fund designations and fiscal policies.
The City’s total net assets increased by $703,111.
As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $15,031,437, an increase of $682,905. The increase is mainly due to
$412,366 of transfers from Enterprise funds for capital improvement projects and from
overall favorable budget variances.
At the end of the current fiscal year the general fund balance was $3,261,561 of which
$2,057 is nonspendable, $179,000 is assigned, and $2,609,000 is meant to fund cash flow and
contingencies during 2012.
The General Fund balance increased by $287,764 as a result of positive budget variances in
revenue and expenditures.
The City transferred $280,240 from the General Fund to the Budgeted Projects Fund for
capital improvements for streets, parks, public safety, public works, and general government.
The City also transferred $320,000 from the General Fund to the Street Reconstruction Fund,
$78,000 from the General Fund to the Storm Sewer Renewal Replacement Fund and
$134,000 from the General Fund to the G.O. Capital Improvement Bonds of 2009 Fund.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic
financial statements. The City’s basic financial statements comprise three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains other supplementary information in addition
to the basic financial statements themselves.
Management’s Discussion and Analysis
Government-wide financial statements
. The government-wide financial statements are
designed to provide readers with a broad overview of the City’s finances, in a manner similar
to a private-sector business.
Thestatement of net assets presents information on all of the City’s assets and liabilities,
with the difference between the two reported as net assets. Over time, increases or decreases
in net assets may serve as a useful indicator of whether the financial position of the City is
improving or deteriorating.
Thestatement of activities presents information showing how the City’s net assets changed
during the most recent fiscal year. All changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will
only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused
vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities)
from other functions that are intended to recover all or a significant portion of their costs
through user fees and charges (business-type activities). The governmental activities of the
City include general government, public safety, public works and parks and recreation. The
business-type activities of the City include water, sanitary sewer and storm sewer.
The government-wide financial statements are statements 1 and 2 of this report.
Fund Financial statements
. A fund is a grouping of related accounts that is used to
maintain control over resources that have been segregated for specific activities or objectives.
The City, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City
can be divided into two categories: governmental funds and proprietary funds.
Governmental funds
. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resource, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government’s near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government-wide
financial statements. By doing so, readers may better understand the long-term impact of the
City's near term financial decisions. Both the governmental fund balance sheet and
Management’s Discussion and Analysis
governmental fund statement of revenues, expenditures and change in fund balance provide a
reconciliation to facilitate this comparison between governmental funds and governmental
activities.
The City maintains five individual major governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures and changes in fund balance for the following major funds:
General Fund
Budgeted Projects and Equipment Revolving Fund – Capital Project Fund
Street Reconstruction Fund – Capital Project Fund
City Hall Improvements – Capital Project Fund
Renewal and Replacement Fund – Capital Project Fund
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the form
of subcombining statements elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund. A budgetary
comparison schedule has been provided for this fund to demonstrate compliance with this
budget – see Statement 10.
The basic governmental fund financial statements are statements 3 through 5 of this report.
Proprietary funds
. The City maintains three enterprise funds as a part of its proprietary
fund type. Enterprise funds are used to report the same functions presented as business-type
activities in the government-wide financial statements. The City uses enterprise funds to
account for its water, sanitary sewer and storm sewer operations.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the following funds:
Enterprise funds:
Water
Sanitary Sewer
Storm Sewer
The basic proprietary fund financial statements are statements 6 through 8 of this report.
Management’s Discussion and Analysis
Fiduciary Funds
. Fiduciary funds are used to account for resources held for the benefit of
parties outside the City. Fiduciary funds are not reflected by the government-wide financial
statements because the resources of those funds are not available to support the City’s own
programs.
The basic fiduciary fund statements are Statements 9, 19 and 20.
Notes to the financial statements
. The notes provide additional information that is essential
to a full understanding of the data provided in the government–wide and fund financial
statements. The notes to the financial statements can be found following Statement 9.
Other information.
The combining statements referred to earlier in connection with non-
major governmental funds are presented immediately following the required supplementary
information on budgetary comparisons. Combining and individual fund statements and
schedules are presented as Statements 11 through 18.
Government-Wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's
financial position. In the case of the City, assets exceeded liabilities by $34,593,380 at the
close of the most recent fiscal year.
The largest portion of the City’s net assets ($18,346,223 or 53% percent) reflects its
investment in capital assets (e.g. land, improvements, buildings and structures, machinery
and equipment, and furniture and fixtures) less any related debt used to acquire those assets
that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City’s
investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
Management’s Discussion and Analysis
City of Oak Park Heights’ Net Assets
Governmental ActivitiesBusiness-Type ActivitiesTotals
201120102011201020112010
Assets:
Current and other assets$15,682,544$15,516,265$1,314,158$1,257,019$16,996,702$16,773,284
Capital assets18,236,43618,629,5286,964,7876,752,96825,201,22325,382,496
Total assets$33,918,980$34,145,793$8,278,945$8,009,987$42,197,925$42,155,780
Liabilities:
Long-term liabilities outstanding$6,767,937$7,063,434$35,564$29,126$6,803,501$7,092,560
Other liabilities658,1291,019,284142,91561,040801,0441,080,324
Total liabilities$7,426,066$8,082,718$178,479$90,166$7,604,545$8,172,884
Net assets:
Invested in capital assets, net of related debt$11,381,436$11,519,528$6,964,787$6,752,968$18,346,223$18,272,496
Restricted1,152,789847,862 - - 1,152,789847,862
Unrestricted13,958,68913,695,6851,135,6791,166,85315,094,36814,862,538
Total net assets$26,492,914$26,063,075$8,100,466$7,919,821$34,593,380$33,982,896
A portion of the City’s net assets represent resources that are subject to external restrictions
on how they may be used. The remaining balance of unrestricted net assets may be used to
meet the City’s ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three
categories of net assets, both for the government as a whole, as well as for its separate
governmental and business-type activities.
Management’s Discussion and Analysis
Governmental Activities
Governmental activities increased the City’s net assets by $429,839 during 2011. Key
elements of this increase are as follows:
City of Oak Park Heights’ Changes in Net Assets
Governmental ActivitiesBusiness-Type ActivitiesTotals
201120102011201020112010
Revenues:
Program revenues:
Charges for services$442,037$950,513$1,497,669$1,390,935$1,939,706$2,341,448
Operating grants and contributions96,402145,0484,594 - 100,996145,048
Capital grants and contributions15,94376,970 - - 15,94376,970
General revenues:
General property taxes3,934,3093,692,127 - - 3,934,3093,692,127
Grants and contributions not
restricted to specific programs2,040104,987 - - 2,040104,987
Gain on sale of capital assets8,960 - - - 8,960 -
Other revenue17,71816,588 - - 17,71816,588
Unrestricted investment earnings239,763320,18317,78022,934257,543343,117
Total revenues4,757,1725,306,4161,520,0431,413,8696,277,2156,720,285
Expenses:
General government1,381,5891,575,297 - - 1,381,5891,575,297
Public safety1,411,6901,407,161 - - 1,411,6901,407,161
Public works999,473980,630 - - 999,473980,630
Parks and recreation239,100201,716 - - 239,100201,716
Interest on long-term debt275,196280,548 - - 275,196280,548
Water - - 472,040466,218472,040466,218
Sanitary sewer - - 746,656740,184746,656740,184
Storm sewer - - 48,360108,46748,360108,467
Total expenses 4,307,0484,445,3521,267,0561,314,8695,574,1045,760,221
Increase in net assets before transfers450,124861,064252,98799,000703,111960,064
Transfers(20,285)261,21220,285(261,212) - -
Change in net assets429,8391,122,276273,272(162,212)703,111960,064
Net assets - January 1, as previously reported26,063,07524,940,7997,919,8218,082,03333,982,89633,022,832
Prior period adjustment - - (92,627) - (92,627) -
Net assets - January 1, as restated26,063,07524,940,7997,827,1948,082,03333,890,26933,022,832
Net assets - December 31$26,492,914$26,063,075$8,100,466$7,919,821$34,593,380$33,982,896
Management’s Discussion and Analysis
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenditures:
Governmental Activities -Revenues
Unrestricted investment
Operating grants and
Grants and contributions not
Capital grants and
earnings
contributions
restricted to specific programs
contributions 1%
Charges for services
5%
2%
0%
9%
General property taxes
83%
Governmental Activities -Expenses
Interest on long-term debt
6%
Parks and recreation
6%
General government
32%
Public works
23%
Public safety
33%
Management’s Discussion and Analysis
Business-Type Activities
Business-type activities increased net assets by $273,272 during 2011. Below are graphs
showing the business-type activities revenue and expense comparisons:
Business-Type Activities -RevenuesBusiness-Type Activities -RevenuesBusiness-Type Activities -Revenues
Operating grants and
Unrestricted investment
contributions 0%
earnings
1%
Charges for services
99%
Business-Type Activities -Expenses
Storm sewer
4%
Water
37%
Sanitary sewer
59%
Management’s Discussion and Analysis
Financial Analysis of the Government's Funds
Governmental Funds
. The focus of the City’s governmental funds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information is
useful in assessing the City’s financing requirements. In particular, unreserved fund balance
may serve as a useful measure of a government’s net resources available for spending at the
end of the fiscal year.
At the end of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $15,031,437.
The General Fund increased by $287,764 in 2011. Revenues were over budget by $141,895
due to a strong property tax collection rate and collection of more license and permit revenue
than budgeted.
Expenditures were under budget by $267,359 due to the majority of City departments actual
expenditures being under budget.
The Budgeted Projects and Equipment Revolving increased by $37,830 primarily because the
City is accumulating funds for future expenditures relating to the eradification of the Emerald
Ash Borer.
The Street Reconstruction Capital Project Fund increased by $352,806 during 2011 due to
transfers in from other funds and investment income.
The City Hall Improvements Capital Project Fund was established in 2008 to account for the
construction of the new City Hall. Financing is provided by $6.3 million of bonds issued in
2008 and an additional $1.2 million of bonds issued in 2009. The fund balance of this fund
decreased $74,209 in 2011.
The Renewal and Replacement Capital Project Fund increased by $256,271 during 2011.
This fund receives an annual transfer from the proprietary funds in an amount equal to
depreciation expense on contributed capital assets.
The nonmajor special revenue funds decreased by $49,118 during 2011.
The nonmajor debt service funds increased by $15,275 during 2011.
The nonmajor capital project funds decreased by $143,714 during 2011.
Management’s Discussion and Analysis
Proprietary funds
. The City’s proprietary funds provide the same type of information
found in the government-wide financial statements, but in more detail.
Budgetary Highlights
General Fund
The General Fund budget was not amended during 2011.
Capital Asset and Debt Administration
Capital assets
. The City’s investment in capital assets for its governmental and business-
type activities as of December 31, 2011, amounts to $25,201,223 (net of accumulated
depreciation). This investment in capital assets includes land, construction in progress,
buildings and structures, other improvements, infrastructure, machinery and equipment and
furniture and fixtures.
City of Oak Park Heights’ Capital Assets
(Net of Depreciation
)
BeginningEnding
BalanceIncreasesDecreasesBalance
Governmental activities:
Capital assets, not being depreciated:
Land$2,238,930$ - $ - $2,238,930
Construction in progress83,051503,029(586,080) -
Total capital assets, not being depreciated2,321,981503,029(586,080)2,238,930
Capital assets, being depreciated:
Buildings and structures7,510,69281,150(44,579)7,547,263
Other improvements1,402,164120,995 - 1,523,159
Machinery and equipment511,92190,619(52,290)550,250
Furniture and fixtures294,238125,624 - 419,862
Infrastructure12,811,946 - - 12,811,946
Total capital assets, being depreciated22,530,961418,388(96,869)22,852,480
Less accumulated depreciation for:
Buildings and structures162,361176,912(44,579)294,694
Other improvements175,41344,395 - 219,808
Machinery and equipment330,68650,013(52,290)328,409
Furniture and fixtures109,53435,123 - 144,657
Infrastructure5,445,420421,986 - 5,867,406
Total accumulated depreciation6,223,414728,429(96,869)6,854,974
Total capital assets being depreciated - net16,307,547(310,041)015,997,506
Governmental activities capital assets - net$18,629,528$192,988($586,080)$18,236,436
Management’s Discussion and Analysis
BeginningEnding
BalanceIncreasesDecreasesBalance
Business-type activities:
Capital assets, not being depreciated:
Land$937,919$ - $ - $937,919
Total capital assets, not being depreciated937,91900937,919
Capital assets, being depreciated:
Buildings and structures1,615,014432,651 - 2,047,665
Machinery and equipment407,9283,874(8,941)402,861
Distribution and collection systems7,311,429 - - 7,311,429
Total capital assets, being depreciated9,334,371436,525(8,941)9,761,955
Less accumulated depreciation:
Buildings and structures600,91555,355 - 656,270
Machinery and equipment175,11820,458(7,670)187,906
Distribution and collection systems2,743,289147,622 - 2,890,911
Less accumulated depreciation3,519,322223,435(7,670)3,735,087
Total capital assets being depreciated - net5,815,049213,090(1,271)6,026,868
Business-type activities capital assets - net$6,752,968$213,090($1,271)$6,964,787
Additional information on the City’s capital assets can be found in Note 4.
Long-term debt
. At the end of the current fiscal year, the City had total long-term debt
outstanding of $6,855,000, a decrease of $255,000 from 2010.
Additional long-term debt in the amount of $263,801 for compensated absences was also
outstanding at the end of 2011.
City of Oak Park Heights’ Outstanding Debt
General obligation improvement bonds and compensated absences:
Governmental ActivitiesBusiness-Type ActivitiesTotals
201120102011201020112010
General Obligation Bonds$6,855,000$7,110,000$ - $ - $6,855,000$7,110,000
Compensated absences226,421219,96737,38030,737263,801250,704
Total$7,081,421$7,329,967$37,380$30,737$7,118,801$7,360,704
Management’s Discussion and Analysis
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of
total estimated market value. The current debt limitation for the City is $20,098,161. The
City’s 2008A and 2009A Capital Improvement Bonds are counted within the statutory
limitation.
Additional information on the City’s long-term debt can be found in Note 5.
Requests for information.
This financial report is designed to provide a general overview
of the City’s finances for all those with an interest in the government’s finances. Questions
concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Director of Finance, 14168 Oak Park Boulevard, Oak
Park Heights, Minnesota 55082-2007.
BASIC FINANCIAL STATEMENTS
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CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 1
STATEMENT OF NET ASSETS
December 31, 2011
Primary Government
GovernmentalBusiness-TypeTotals
Assets:ActivitiesActivities20112010
Cash and investments$15,035,643$883,290$15,918,933$15,569,182
Accrued interest 137,55510,202147,757152,496
Accounts receivable - net9,343382,094391,437395,788
Due from other governmental units43,2728,46651,73884,991
Prepaid items2,05730,10632,16333,940
Taxes receivable:
Delinquent82,734 - 82,734132,814
Due from County29,000 - 29,00033,854
Special assessments receivable55,529 - 55,52974,038
Land held for resale168,518 - 168,518168,518
Unamortized bond issuance costs118,893 - 118,893127,663
Capital assets (net of accumulated depreciation):
Land2,238,930937,9193,176,8493,176,849
Building and structures7,252,5691,391,3958,643,9648,362,830
Other improvements1,303,351 - 1,303,3511,226,751
Machinery and equipment221,841214,955436,796413,645
Furniture and fixtures275,205 - 275,205184,704
Infrastructure6,944,5404,420,51811,365,05811,934,666
Construction in progress - - - 83,051
Total assets33,918,9808,278,94542,197,92542,155,780
Liabilities:
Accounts payable94,522117,982212,504319,638
Salaries payable4,4251,8336,2587,912
Contracts payable121,393 - 121,393318,084
Due to other governmental units1,0938,6279,7208,707
Deposits payable4,000 - 4,00061,092
Accrued interest payable10,862 - 10,86211,111
Compensated absences payable:
Due within one year38,4841,81640,30013,144
Due in more than one year187,93735,564223,501237,560
Other post employment benefits108,35012,657121,00785,636
Bonds payable:
Due within one year275,000 - 275,000255,000
Due in more than one year6,580,000 - 6,580,0006,855,000
Total liabilities7,426,066178,4797,604,5458,172,884
Net assets:
Invested in capital assets, net of related debt11,381,4366,964,78718,346,22318,272,496
Restricted for:
Debt service231,464 - 231,464235,862
Park improvements913,170 - 913,170944,952
Law enforcement8,155 - 8,15554,021
Unrestricted13,958,6891,135,67915,094,36814,475,565
Total net assets$26,492,914$8,100,466$34,593,380$33,982,896
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2011
Charges For
Functions/ProgramsExpensesServices
Primary government:
Governmental activities:
General government$1,381,589$101,999
Public safety1,411,690293,353
Public works999,47346,685
Parks and recreation239,100 -
Interest on long-term debt275,196 -
Total governmental activities4,307,048442,037
Business-type activities:
Water472,040648,663
Sanitary sewer746,656782,266
Storm sewer48,36066,740
Total business-type activities1,267,0561,497,669
Total primary government$5,574,104$1,939,706
The accompanying notes are an integral part of these financial statements.
Statement 2
Net (Expense) Revenue and
Program RevenuesChanges in Net Assets
OperatingCapitalPrimary Government
Grants andGrants andGovernmentalBusiness-TypeTotals
ContributionsContributionsActivitiesActivities20112010
$4,000$ - ($1,275,590)$ - ($1,275,590)($1,371,892)
74,248 - (1,044,089) - (1,044,089)(957,380)
18,1544,443(930,191) - (930,191)(737,425)
- 11,500(227,600) - (227,600)74,424
- - (275,196) - (275,196)(280,548)
96,40215,943(3,752,666)0(3,752,666)(3,272,821)
4,594 - - 181,217181,21799,641
- - - 35,61035,6109,194
- - - 18,38018,380(32,769)
4,59400235,207235,20776,066
$100,996$15,943(3,752,666)235,207(3,517,459)(3,196,755)
General revenues:
General property taxes3,934,309 - 3,934,3093,692,127
Grants and contributions not
restricted to specific programs2,040 - 2,040104,987
Unrestricted investment earnings239,76317,780257,543343,117
Gain on sale of capital assets8,960 - 8,960 -
Other17,718 - 17,71816,588
Transfers(20,285)20,285 - -
Total general revenues
and transfers4,182,50538,0654,220,5704,156,819
Change in net assets429,839273,272703,111960,064
Net assets - January 1,
as previously reported26,063,0757,919,82133,982,89633,022,832
Prior period adjustment - (92,627)(92,627) -
Net assets - January 1, as restated26,063,0757,827,19433,890,26933,022,832
Net assets - December 31$26,492,914$8,100,466$34,593,380$33,982,896
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2011
401 Budgeted
Projects and
Equipment
General FundRevolving
Assets
Cash and investments$3,250,191$1,017,048
Accrued interest receivable23,7348,895
Accounts receivable - net6,091 -
Due from other governmental units43,272 -
Prepaid items2,057 -
Taxes receivable:
Delinquent82,734 -
Due from county26,288 -
Special assessments receivable - -
Land held for resale - -
Total assets$3,434,367$1,025,943
Liabilities and Fund Balances
Liabilities:
Accounts payable$80,554$ -
Salaries payable4,425 -
Contractspayable -- --
Contractspayable
Due to other governmental units1,093 -
Deposits payable4,000 -
Deferred revenue82,734 -
Total liabilities172,8060
Fund balance:
Nonspendable2,057 -
Restricted - -
Assigned179,0001,025,943
Unassigned3,080,504 -
Total fund balance3,261,5611,025,943
Total liabilities and fund balance$3,434,367$1,025,943
Fund balance reported above
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources, and therefore, are not reported in the funds.
Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds.
Long-term liabilities, are not due and payable in the current period and therefore are not reported in the funds:
Bonds payable
Compensated absences payable
Other post employment benefits
Accrued interest payable
Net assets of governmental activities
The accompanying notes are an integral part of these financial statements. The accompanying notes are an integral part of these financial statements.
Statement 3
710 Renewal and
ReplacementOther
565 Street 572 City Hall Capital Project Governmental
ReconstructionImprovementsFundFunds
Total Governmental Funds
20112010
$2,114,186$225,348$4,337,475$4,091,395$15,035,643$14,732,532
18,8222,88941,31641,899137,555142,303
-3,252 - -9,34320,317
- - - -43,27284,226
- - - -2,057 -
- - - -82,734132,814
- - -2,71229,00033,854
- - -55,52955,52974,038
- - -168,518168,518168,518
$2,133,008$231,489$4,378,791$4,360,053$15,563,651$15,388,602
$ -$5,042$ -$8,926$94,522$277,453
- - - -4,4255,574
--110788, --10605,121393,318084,
11078810605121393318084
- - - -1,0932,497
- - - -4,00061,092
- - -224,047306,781375,370
0115,8300243,578532,2141,040,070
- - - -2,057 -
- - - 1,033,8961,033,8961,096,269
2,133,008115,6594,378,7913,082,57910,914,98010,550,466
- - - - 3,080,5042,701,797
2,133,008115,6594,378,7914,116,47515,031,43714,348,532
$2,133,008$231,489$4,378,791$4,360,053$15,563,651$15,388,602
$15,031,437$14,348,532
18,236,43618,629,528
425,674503,033
(6,855,000)(7,110,000)
(226,421)(219,967)
(108,350)(76,940)
(10,862)(11,111)
$26,492,914$26,063,075
The accompanying notes are an integral part of these financial statements. The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2011
401 Budgeted
Projects and
Equipment
General FundRevolving
Revenues:
General property taxes$3,583,487$ -
Special assessments - -
Licenses and permits131,081 -
Intergovernmental97,442 -
Charges for services87,552 -
Fines and forfeits57,862 -
Investment income41,37815,503
Refunds and reimbursements129,313 -
Donations and contributions -12,500
Total revenues4,128,11528,003
Expenditures:
Current:
General government1,150,89511,866
Public safety1,325,9317,903
Public works445,520136,422
PkdtiParks and recreation113,7925,2031137925203
Capital outlay1,983231,369
Debt service:
Principal retirement - -
Interest and other - -
Total expenditures3,038,121 392,763
Revenues over (under) expenditures1,089,994 (364,760)
Other financing sources (uses):
Sale of capital assets10,010 -
Transfers in - 402,590
Transfers out(812,240) -
Total other financing sources (uses)(802,230)402,590
Net change in fund balance287,76437,830
Fund balance - January 12,973,797988,113
Fund balance - December 31$3,261,561$1,025,943
The accompanying notes are an integral part of these financial statements. The accompanying notes are an integral part of these financial statements.
Statement 4
710 Renewal
and Replacement Other
565 Street 572 City Hall Capital Project GovernmentalIntra-Activity
ReconstructionImprovementsFundFundsEliminations
Total Governmental Funds
20112010
$ - $ - $ - $400,902$ - $3,984,389$3,697,809
- - - 22,952 - 22,95228,583
- - - - - 131,081197,181
- - - - - 97,442282,551
- - - 46,685 - 134,237561,411
- - - 2,960 - 60,82273,761
32,8065,03572,01373,028 - 239,763320,183
-3,252 - - - 132,565134,323
- - - - - 12,5002,184
32,806 8,287 72,013 546,527 0 4,815,751 5,297,986
- 12,118 - 3,831 - 1,178,7101,370,381
- - - 17,733 - 1,351,5671,312,335
- - - 24,013 - 605,955592,897
- - - 10,332 - 129,327125,41410332129327125414
- 70,378 - 464,258 - 767,9883,583,666
- - - 255,000 - 255,000250,000
- - - 266,675 - 266,675272,000
0 82,496 0 1,041,842 0 4,555,222 7,506,693
32,806 (74,209)72,013 (495,315)0 260,529 (2,208,707)
- - - - - 10,010425
320,000 - 184,258339,208(833,690)412,366397,589
- - - (21,450)833,690 - -
320,000 0 184,258 317,758 0 422,376 398,014
352,806 (74,209)256,271 (177,557)0 682,905 (1,810,693)
1,780,202189,8684,122,5204,294,032 - 14,348,53216,159,225
$2,133,008$115,659$4,378,791$4,116,475$0$15,031,437$14,348,532
The accompanying notes are an integral part of these financial statements. The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 5
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2011
20112010
Amounts reported for governmental activities in the
statement of activities are different because:
Net changes in fund balances - total governmental funds (Statement 4)$682,905($1,810,693)
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense:
Depreciation(728,429)(732,957)
Capital outlay767,9883,583,666
Other various transactions relating to capital assets:
Capital contributions to business-type activities(432,651)(136,377)
Transfer of asset from business-type activities -35,674
Loss on disposal of capital asset -(10,871)
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds:
Change in delinquent taxes receivable(50,080)(5,682)
Change in deferred and delinquent special assessments receivable(18,509)(21,987)
The issuance of long-term debt (e.g., bonds, leases) provides current
financial resources to governmental funds, while the repayment of the
principal of long-term debt consumes the current financial resources of
governmental funds. Neither transaction, however, has any effect on net
assets. The amount of this difference is:
Principal payments on bonds payable255,000250,000
Some expenses reported in the statement of activities do not require the use
of current financial resources and, therefore, are not reported as expenditures
in governmental funds. Expenses reported in the statement of activities
include the effects of the changes in these expense accruals as follows:
Amortization of issuance costs(8,770)(8,770)
Change in compensated absences payable(6,454)19,468
Change in other post employment benefits(31,410)(39,417)
Change in accrued interest payable249222
Change in net assets of governmental activities (Statement 2)$429,839$1,122,276
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 6
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2011
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility
Utility FundUtility FundFund
Totals
20112010
Assets:
Current assets:
Cash and cash equivalents$387,969$315,840$179,481$883,290$836,650
Accrued interest receivable4,3954,0051,80210,20210,193
Accounts receivable:
Customers136,629181,93216,777335,338328,252
Certified to County17,26927,7421,74546,75647,219
Due from other governmental units2,0716,314818,466765
Prepaid items - 30,106 - 30,10633,940
Total current assets548,333 565,939 199,886 1,314,158 1,257,019
Noncurrent assets:
Capital assets:
Land937,919 - - 937,919937,919
Buildings and structures2,003,68243,983 - 2,047,6651,615,414
Machinery and equipment396,4656,396 - 402,861407,528
Distribution and collection system3,308,9444,002,485 - 7,311,4297,311,429
Total capital assets6,647,010 4,052,864 0 10,699,874 10,272,290
Less: Allowance for depreciation(2,114,703)(1,620,384) - (3,735,087)(3,519,322)
Net capital assets4,532,3072,432,48006,964,7876,752,968
Total noncurrent assets4,532,3072,432,48006,964,7876,752,968
Total assets5,080,6402,998,419199,8868,278,9458,009,987
Liabilities:
Current liabilities:
Accounts payable29,69322,38265,907117,98242,185
Salaries payable964869 - 1,8332,338
Due to other governmental units4,2124,415 - 8,6276,210
Compensated absences payable - current portion1,0596531041,8161,611
Total current liabilities35,928 28,319 66,011 130,258 52,344
Noncurrent liabilities:
Compensated absences payable - noncurrent portion20,74112,7922,03135,56429,126
Other post employment benefits6,9684,6791,01012,6578,696
Noncurrent liabilities27,70917,4713,04148,22137,822
Total liabilities63,63745,79069,052178,47990,166
Net assets:
Invested in capital assets4,532,3072,432,480 - 6,964,7876,752,968
Unrestricted484,696520,149130,8341,135,6791,166,853
Total net assets$5,017,003$2,952,629$130,834$8,100,466$7,919,821
The accompanying notes are an integral part of these financial statements.The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 7
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For The Year Ended December 31, 2011
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility
Utility FundUtility FundFund
Totals
20112010
Operating revenues:
Customer billings$633,938$768,097$65,341$1,467,376$1,365,809
Penalties8,55412,0881,17521,81716,455
Meter sales1,721 - - 1,7215,022
Charges for services1,649490 - 2,1392,992
Refunds and reimbursements2,8011,5912244,616657
Total operating revenues648,663 782,266 66,740 1,497,669 1,390,935
Operating expenses:
Personal services190,893121,91822,272335,083293,950
Contractual services93,91984,24021,452199,611193,204
MCES charges - 407,278 - 407,278390,106
Materials and supplies24,2735,88479630,95320,361
Administrative and personnel charges22,46043,1253,84069,42566,420
Depreciation139,22484,211 - 223,435219,381
Total operating expenses470,769 746,656 48,360 1,265,785 1,183,422
Operating income177,894 35,610 18,380 231,884 207,513
Nonoperating revenues (expenses):
Earnings on investments7,6596,9803,14117,78022,934
Other4,594 - - 4,594(35,674)
(Loss) on disposal of capital assets(1,271) - - (1,271)(95,773)
Total nonoperating revenues (expenses)10,9826,9803,14121,103(108,513)
Income before contributions and transfers188,87642,59021,521252,98799,000
Capital contributions432,651 - - 432,651136,377
Transfers:
Transfers to other funds(270,610)(133,456)(8,300)(412,366)(397,589)
Total transfers and contributions162,041(133,456)(8,300)20,285(261,212)
Change in net assets350,917(90,866)13,221273,272(162,212)
Net assets - January 1, as previously reported4,675,8153,057,261186,7457,919,8218,082,033
Prior period adjustment(9,729)(13,766)(69,132)(92,627) -
Net assets - January 1, as restated4,666,0863,043,495117,6137,827,1948,082,033
Net assets - December 31$5,017,003$2,952,629$130,834$8,100,466$7,919,821
CapitalTransfers
ContributionsNet
Amounts reported above$432,651($412,366)
Amounts reported for business-type activities in the statement of activities are different because:
Transfer in of capital assets from governmental activities(432,651)432,651
Amounts reported on the statement of activities$0$20,285
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 8
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2011
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility
Utility FundUtility FundFund
Totals
20112010
Cash flows from operating activities:
Receipts from customers and users$630,176$777,167$76,002$1,483,345$1,346,653
Payment to suppliers(130,615)(556,931)(30,300)(717,846)(674,721)
Payment to employees(185,390)(118,073)(21,521)(324,984)(286,625)
Net cash flows provided by (used in) operating activities314,171102,16324,181440,515385,307
Cash flows from noncapital financing activities:
Other revenues4,594 - - 4,594 -
Transfer to other funds(270,610)(133,456)(8,300)(412,366)(397,589)
Net cash flows provided by (used in)
noncapital financing activities(266,016)(133,456)(8,300)(407,772)(397,589)
Cash flows from capital and related
financing activities:
Acquisition of capital assets(3,874) - - (3,874)(41,594)
Cash flows from investing activities:
Investment income7,3557,1943,22217,77128,315
Net increase (decrease) in cash and cash equivalents51,636(24,099)19,10346,640(25,561)
Cash and cash equivalents - January 1336,333339,939160,378836,650862,211
Cash and cash equivalents - December 31$387,969 $315,840 $179,481 $883,290 $836,650
Reconciliation of operating income to net
cash provided by operating activities:
Operating income$177,894$35,610$18,380$231,884$207,513
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities:
Depreciation139,22484,211 - 223,435219,381
Prior period adjustment(9,729)(13,766)(69,132)(92,627) -
Changes in assets and liabilities:
Decrease (increase) in receivables(18,487)(5,099)9,262(14,324)(44,282)
Decrease (increase) in prepaid expenses - 3,834 - 3,834(1,431)
Increase (decrease) in payables25,269(2,627)65,67188,3134,126
Total adjustments136,277 66,553 5,801 208,631 177,794
Net cash provided by (used in) operating activities$314,171$102,163$24,181$440,515$385,307
Noncash investing, capital and financing activities:
Contribution of capital assets$432,651$0$0$432,651$136,377
Transfer of capital assets to governmental activities$0$0$0$0($35,674)
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 9
STATEMENT OF FIDUCIARY NET ASSETS
AGENCY FUNDS
December 31, 2011
20112010
Assets:
Cash and investments$238,758$185,338
Due from developers17,16815,735
Total assets255,926201,073
Liabilities:
Escrow deposits payable$146,500$96,500
Accounts payable7,5026,551
Due to developers101,92498,022
Total liabilities255,926201,073
Net assets:
Unrestricted$0$0
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Oak Park Heights, Minnesota 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, Minnesota 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 (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 UNIT
The EDA of the City of Oak Park Heights, Minnesota 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.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the statement of net assets and the statement of changes
in net assets) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent on fees
and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
business-type activity is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or business-type activity. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or business-type activity and 2) grants and contributions that are restricted
to meeting the operational or capital requirements of a particular function or business-type activity.
Taxes and other items not included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns
in the fund financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
C.MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met. The City’s only fiduciary funds are agency funds. Agency
funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of
operations.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
City considers all revenues, except reimbursement grants, to be available if they are collected within 60
days of the end of the current fiscal period. Reimbursement grants are considered available if they are
collected within one year of the end of the current fiscal period. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well
as expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Only the portion of special assessments receivable
due within the current fiscal period is considered to be susceptible to accrual as revenue of the current
period. All other revenue items are considered to be measurable and available only when cash is
received by the City.
The City reports the following major governmental funds:
TheGeneral Fund is the City’s primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
TheBudgeted Projects and Equipment Revolving Capital Project Fund is used to account for
monies set aside for various capital improvements.
TheStreet Reconstruction Capital Project Fund accounts for the accumulation of funds to be used
for future street reconstruction projects.
TheCity Hall Improvements Capital Project Fund is used to account for the costs related to the
construction of the new City hall.
TheRenewal and Replacement Capital Project Fund is used to account for assets depreciated from
the utility fund and water and sanitary sewer departments. Funds are used to renew or replace
water and sanitary sewer system assets.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
The City reports the following major proprietary funds:
The Water Utility Fund accounts for assets, liabilities, revenues and expenditures for water utility
operations.
The Sewer Utility Fund accounts for assets, liabilities, revenues and expenditures for sewer utility
operations.
The Storm Sewer Utility Fund accounts for assets, liabilities, revenues and expenditures for storm
sewer utility operations.
Additionally, the City reports the following fund type:
Agency Funds account for the assets of various developers held by the City as an agent.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the government-wide and proprietary fund financial statements to the
extent that those standards do not conflict with or contradict guidance of the Governmental Accounting
Standards Board. Governments also have the option of following subsequent private-sector guidance
for their business-type activities and enterprise funds, subject to this same limitation. The City has
elected not to follow subsequent private-sector guidance.
As a general rule the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are transactions that would be treated as revenues,
expenditures or expenses if they involved external organizations, such as buying goods and services or
payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination
of these charges would distort the direct costs and program revenues reported for the various functions
concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of
the enterprise funds are charges to customers for sales and services. Operating expenses for enterprise
funds include the cost of sales and services, administrative expenses, and depreciation on capital assets.
All revenues and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
D.BUDGETS
Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual
appropriated budgets are adopted for the General Fund, but not for Special Revenue Funds. Budgeted
expenditure appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed
by the City because it is at present not considered necessary to assure effective budgetary control or to
facilitate effective cash management.
E.LEGAL COMPLIANCE - BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Administrator submits to the City Council a proposed operating budget for the fiscal
year commencing the following January 1. The operating budget includes proposed
expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmental basis and can
be expended by each department based upon detailed budget estimates for individual
expenditure accounts.
4. The department heads are authorized to transfer appropriations under $500 within any
department budget. Additional interdepartmental or interfund appropriations and deletions are
or may be authorized by the City Council with fund (contingency) reserves or additional
revenues.
5. Formal budgetary integration is employed as a management control device during the year for
the General Fund.
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies
for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to
determine and calculate user charges. These debt service and budget amounts represent
general obligation bond indenture provisions and net income for operation and capital
maintenance and are not reflected in the financial statements.
7. A capital improvement program is reviewed annually by the City Council for the Capital
Project Funds. However, appropriations for major projects are not adopted until the actual bid
award of the improvement. The appropriations are not reflected in the financial statements.
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
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
amounts over budget have been approved by the City council through the disbursement
approval process.
9. The City Council may authorize transfer of budgeted amounts between City funds.
F.CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in
authorized investments. Earnings from investments are allocated to individual funds on the basis of the
fund's equity in the cash and investment pool.
Investments are stated at fair value, based upon quoted market prices, except for investments in 2a7-like
external investment pools, which are stated at amortized cost and approximate fair value. Investment
income is accrued at the balance sheet date.
For purposes of the statement of cash flows the Enterprise Funds consider 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 Funds have original maturities of 90 days or less. Therefore the
entire balance in the fund is considered cash equivalents.
G.RECEIVABLES AND PAYABLES
Property taxes and special assessments (see notes 1H and I) have been reported net of estimated
uncollectible accounts. Because utility bills are considered liens on property, no estimated uncollectible
amounts are established. Uncollectible amounts are not material for other receivables and have not
been reported.
H.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.
Government-Wide Financial Statements
The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible
property taxes are not material and have not been reported.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Governmental Fund Financial Statements
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 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 they are not available to finance current expenditures.
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.
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.
Government-Wide Financial Statements
The City recognizes special assessment revenue in the period that the assessment roll was adopted by
the City Council. Uncollectible special assessments are not material and have not been reported.
Governmental Fund Financial Statements
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. All remaining
delinquent and deferred assessments receivable in governmental funds are offset by deferred revenues.
J.INVENTORIES
The original cost of materials and supplies has been recorded as expenditures at the time of purchase.
The City does not maintain material amounts of inventories of goods and supplies.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
K.PREPAID ITEMS
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements. Prepaid items are reported using
the consumption method and recorded as expenditure/expense at time of consumption.
L.CAPITAL ASSETS
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements. Capital assets are defined by the City as assets
with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in
excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased
or constructed. Donated capital assets are recorded at estimated fair market value at the date of
donation.
In the case of the initial capitalization of general infrastructure assets (i.e., those reported by
governmental activities) the City chose to include all such items regardless of their acquisition date.
These assets are reported at historical cost.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type activities is included as part of
the capitalized value of the assets constructed.For the year ended December 31, 2011, no interest was
capitalized in connection with construction in progress.
Property, plant and equipment of the primary government, as well as the component units, are
depreciated using the straight line method over the following estimated useful lives:
Buildings and structures 20 - 50 years
Machinery and equipment 3 – 20 years
Distribution and collection systems 50 years
Streets 25 years
Storm sewers 50 years
Pathways 20 years
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
M.COMPENSATED ABSENCES
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay
benefits. All vacation pay and accumulated vested sick leave benefits that is accrued when incurred in
the government-wide and proprietary fund financial statements.
A liability for these amounts is reported in governmental funds only if they have matured, for example,
as a result of employee resignations and retirements. In accordance with the provisions of Statement of
Government Accounting Standards No. 16, Accounting for Compensated Absences, no liability is
recorded for nonvesting accumulating rights to receive sick pay benefits.
N.LONG-TERM OBLIGATIONS
In the government-wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net assets. Bond issuance costs
are amortized over the life of the bond. Bond premiums and discounts are immaterial and are expensed
in the year of bond issuance.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
O.FUND BALANCE CLASSIFICATIONS
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable - consists of amounts that are not in spendable form, such as prepaid items.
Restricted - consists of amounts related to externally imposed constraints established by creditors,
grantors or contributors; or constraints imposed by state statutory provisions.
Committed - consists of internally imposed constraints. These constraints are established by
Resolution of City Council.
Assigned – consistsof internally imposed constraints for the specific purpose of the City’s intended
use. Pursuant to the City’s Fund Balance Policy, the Finance Director and/or City Administrator
have been authorized to assign fund balance that reflects the City’s intended use of those funds.
Unassigned – is the residual classification for the general fund and also reflects negative residual
amounts in other funds.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
When both restricted and unrestricted resources are available for use, it is the City’s policy to first use
restricted resources, and then use unrestricted resources as they are needed.
When committed, assigned or unassigned resources are available for use, it is the City’s policy to use
resources in the following order; 1) committed 2) assigned and 3) unassigned.
P.INTERFUND TRANSACTIONS
Interfund services provided and used 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. Interfund loans are
reported as an interfund loan receivable or payable which offsets the movement of cash between funds.
All other interfund transactions are reported as transfers.
Q.RECLASSIFICATIONS
Certain amounts presented in the prior year data have been reclassified in order to be consistent with the
current year’s presentation.
R.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.
S.COMPARATIVE TOTALS
The basic financial statements and combining and individual fund financial statements include certain
prior-year summarized comparative information in total but not at the level of detail required for a
presentation in conformity with generally accepted accounting principles. Accordingly, such
information should be read in conjunction with the City’s financial statements for the year ended
December 31, 2010, from which the summarized information was derived.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City
Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral
includes the following:
a)United States government treasury bills, treasury notes, treasury bonds;
b)Issues of United States government agencies and instrumentalities as quoted by a recognized
industry quotation service available to the government entity;
c)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;
d)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:
e)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
f)Time deposits that are fully insured by any Federal agency.
At December 31, 2011 the carrying amount of the City’s deposits with financial institutions was
$9,582,060.
Custodial credit risk is the risk that in the event of a bank failure, the
Custodial credit risk – Deposits.
City’s deposits may not be returned to it. State statutes require that insurance, surety bonds or collateral
protect all City deposits. The market value of collateral pledged must equal 110% of deposits not
covered by insurance or bonds. As of December 31, 2011, the bank balance of the City’s deposits was
$4,521,016, all of which was either insured by the Federal Deposit Insurance Corporation (FDIC) or
covered by perfected pledged collateral held in the City’s name.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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:
1)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 429.091,
subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
As of December 31, 2011 the City had the following investments and maturities:
Investment Maturities (in Years)
FairLess
Investment TypeRatingValueThan 11-56-10
Federal National Mortgage Assn. NotesAaa$699,800$ - $100,800$599,000
Federal Home Loan Mortgage Corp. NotesAaa98,249 - 98,249 -
Federal Home Loan Bank NotesAaa550,000 - - 550,000
Brokered certificates of depositNR3,582,000778,0002,708,00096,000
External investment pool - 4M FundNR1,645,4821,645,482 - -
Total$6,575,531$2,423,482$2,907,049$1,245,000
NR - Not RatedTotal investments$6,575,531
Deposits9,582,060
Petty cash100
Total cash and investments$16,157,691
The Minnesota Municipal Money Market Fund (4M Fund) is regulated by Minnesota Statutes and the
Board of Directors of the League of Minnesota Cities and is an external investment pool not registered
with the Securities Exchange Commission (SEC) that follows the same regulatory rules of the SEC
under rule 2a7. The fair value of the position in the pool is the same as the value of the pool shares.
Following is a reconciliation of the City’s cash and investment balances as of December 31, 2011:
Government-wide statement of net assets:
Cash and investments$15,918,933
Fiduciary funds statement of net assets238,758
Total cash and investments$16,157,691
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
C. INVESTMENT RISKS
Custodial credit risk – investments – For investments in securities, custodial credit risk is the risk that in
the event of failure of the counterparty to a transaction, the City will not be able to recover the value of
its investment securities that are in the possession of an outside party. Investments in investment pools
and money markets are not evidenced by securities that exist in physical or book entry form, and
therefore are not subject to custodial credit risk disclosures. The City’s investment policy does not
address custodial risk. However, investments in securities are held by the City’s broker-dealer of which
$1,500,000 is insured through SIPC. Each broker-dealer has provided additional protection by
providing additional insurance. This insurance is subject to aggregate limits applied to all of the
broker-dealer’s accounts.
Interest rate risk – Interest rate risk is the risk that changes in interest rates of debt investments could
adversely affect the fair value of an investment. The City’s investment policy requires the City to
diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of assets
in a specific maturity. The policy also states the City’s investment portfolio will remain sufficiently
liquid to enable the City to meet all operating requirements which might be reasonably anticipated.
Credit Risk – Credit risk is the risk that an issuer or other counterparty to an investment will be unable
to fulfill its obligation to the holder of the investment. Minnesota Statutes limit the City’s investments
to direct obligations or obligations under the Federal Investment Company Act of 1940 that receive the
highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency,
and all of the investments have a final maturity of thirteen months or less; shares of a Minnesota joint
powers investment trust whose investments are restricted to securities described in 118.04; general
obligations of any state or local government with taxing powers which is rated “A” or better; revenue
obligations of any state or local government with taxing powers which is rated “AA” or better; general
obligations of the Minnesota Housing Finance Agency rated “A” or better; bankers’ acceptances of
United States banks eligible for purchase by the Federal Reserve System; commercial paper issued by
United States corporations or their Canadian subsidiaries, rated of the highest quality category by at
least two nationally recognized rating agencies, and maturing in 270 days or less; guaranteed
investment contracts guaranteed by a United States commercial bank, domestic branch of a foreign
bank or a United States insurance company, and with the credit quality in the one of the top two highest
categories; repurchase or reverse purchase agreements and securities lending agreements with financial
institutions qualified as a “depository” by the government entity, with banks that are members of the
Federal Reserve System with capitalization exceeding $10,000,000, that are a primary reporting dealer
in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota
securities brokers-dealers. The City’s investment policy does not place further restrictions on
investment options.
– Concentration of credit risk is the risk of loss that may be attributed to the
Concentration of credit risk
magnitude of a government’s investment in a single issuer. The City places no limit on the amount the
City may invest in any one issuer. The City does not have exposure to a single issuer that equals or
exceeds 5% of the overall portfolio and, therefore, there is no concentration of credit risk.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2011 are as
follows:
Other
Governmental
GeneralFundsTotal
Delinquent property taxes$36,569$ - $36,569
Deferred special assessments - 37,01937,019
Total$36,569$37,019$73,588
Governmental funds report deferred revenue in connection with receivables for revenues that are not considered
to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition
in connection with resources that have been received, but not yet earned. At the end of the current fiscal year,
the various components of deferred revenue and unearned revenue reported in the governmental funds were as
follows:
UnavailableUnearned
Delinquent property taxes receivable (General Fund)$82,734$ -
Special assessments receivable (Nonmajor Fund)55,529 -
Land held for resale (Nonmajor Fund)168,518 -
Total deferred/unearned revenue for governmental funds$306,781$0
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 4 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2011 was as follows:
BeginningEnding
BalanceIncreasesDecreasesBalance
Governmental activities:
Capital assets, not being depreciated:
Land$2,238,930$ - $ - $2,238,930
Construction in progress83,051503,029(586,080) -
Total capital assets, not being depreciated2,321,981503,029(586,080)2,238,930
Capital assets, being depreciated:
Buildings and structures7,510,69281,150(44,579)7,547,263
Other improvements1,402,164120,995 - 1,523,159
Machinery and equipment511,92190,619(52,290)550,250
Furniture and fixtures294,238125,624 - 419,862
Infrastructure12,811,946 - - 12,811,946
Total capital assets, being depreciated22,530,961418,388(96,869)22,852,480
Less accumulated depreciation for:
Buildings and structures162,361176,912(44,579)294,694
Other improvements175,41344,395 - 219,808
Machinery and equipment330,68650,013(52,290)328,409
Furniture and fixtures109,53435,123 - 144,657
Infrastructure5,445,420421,986 - 5,867,406
Total accumulated depreciation6,223,414728,429(96,869)6,854,974
Total capital assets being depreciated - net16,307,547(310,041)015,997,506
Governmental activities capital assets - net$18,629,528$192,988($586,080)$18,236,436
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
BeginningEnding
BalanceIncreasesDecreasesBalance
Business-type activities:
Capital assets, not being depreciated:
Land$937,919$ - $ - $937,919
Total capital assets, not being depreciated937,91900937,919
Capital assets, being depreciated:
Buildings and structures1,615,014432,651 - 2,047,665
Machinery and equipment407,9283,874(8,941)402,861
Distribution and collection systems7,311,429 - - 7,311,429
Total capital assets, being depreciated9,334,371436,525(8,941)9,761,955
Less accumulated depreciation:
Buildings and structures600,91555,355 - 656,270
Machinery and equipment175,11820,458(7,670)187,906
Distribution and collection systems2,743,289147,622 - 2,890,911
Less accumulated depreciation3,519,322223,435(7,670)3,735,087
Total capital assets being depreciated - net5,815,049213,090(1,271)6,026,868
Business-type activities capital assets - net$6,752,968$213,090($1,271)$6,964,787
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government$197,742
Public safety29,598
Public works392,539
Recreation108,550
Total depreciation expense - governmental activities$728,429
Business-type activities:
Water$139,224
Sewer84,211
Total depreciation expense - business-type activities$223,435
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 5 LONG-TERM DEBT
The City issues general obligation bonds to provide funds for the acquisition and construction of major capital
facilities. The reporting entity’s long-term debt is segregated between the amounts to be repaid from
governmental activities and amounts to be repaid from business-type activities.
As of December 31, 2011, the long-term debt of the financial reporting entity consisted of the following:
FinalAuthorized
Issue Maturity Interest AndOutstanding
DateDateRateIssued12/31/11
Governmental activities:
Improvement bonds:
G.O. Capital Improvement Bonds, Series 2008A06/15/0812/15/282.5 - 4.4$6,300,000$5,860,000
G.O. Capital Improvement Bonds, Series 2009A09/15/0912/15/191.2 - 3.551,195,000995,000
Compensated absences payable226,421
Total governmental activities7,081,421
Business-type activities:
Compensated absences payable37,380
Total City indebtedness$7,118,801
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Annual debt service requirements to maturity are as follows:
YearGovernmental Activities
Ending2008A G.O. Cap Imp Bonds2009A G.O. Cap Imp BondsTotal
December 31,PrincipalInterestPrincipalInterestPrincipalInterest
2012$170,000$233,030$105,000$27,650$275,000$260,680
2013185,000227,845110,00025,760295,000253,605
2014200,000222,018115,00023,560315,000245,578
2015215,000215,418120,00020,858335,000236,276
2016230,000208,000125,00017,678355,000225,678
2017250,000199,720130,00014,115380,000213,835
2018270,000190,470140,00010,084410,000200,554
2019290,000180,345150,0005,325440,000185,670
2020315,000169,325 - - 315,000169,325
2021340,000156,725 - - 340,000156,725
2022370,000143,125 - - 370,000143,125
2023405,000128,325 - - 405,000128,325
2024440,000111,922 - - 440,000111,922
2025485,00093,882 - - 485,00093,882
2026525,00073,512 - - 525,00073,512
2027560,00051,200 - - 560,00051,200
2028610,00026,840 - - 610,00026,840
Total$5,860,000$2,631,702$995,000$145,030$6,855,000$2,776,732
It is not practicable to determine the specific year for payment of accrued compensated absences.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Change in Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2011, was as follows:
BalanceBalanceDue Within
01/01/11AdditionsReductions12/31/11One Year
Governmental Activities:
Bonded debt:
Improvement bonds$7,110,000$ - $255,000$6,855,000$275,000
Compensated absences219,967128,002121,548226,42138,484
Total governmental activities$7,329,967$128,002$376,548$7,081,421$313,484
Business-Type Activities:
Compensated absences$30,737$23,009$16,366$37,380$1,816
Total business-type activities$30,737$23,009$16,366$37,380$1,816
For governmental activities, compensated absences are generally liquidated by the General Fund. All long-
term bonded indebtedness outstanding at December 31, 2011 is backed by the full faith and credit of the
City, including improvement bond issues. Delinquent taxes receivable at December 31, 2011 were $82,734.
Revenues Pledged
Revenue PledgedCurrent Year
Percent ofRemainingPrincipalPledged
Use ofTotalTerm ofPrincipaland InterestRevenue
Bond IssueProceedsTypeDebt ServicePledgeand InterestPaidReceived
2008ACity hall constructionProperty taxes100%2009 - 2028$8,491,702$392,525$400,902
2009ACity hall constructionProperty taxes100%2010 - 2019$1,140,030$129,150$134,000
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 General
Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF) which are
cost-sharing, multiple-employer retirement plans. These plans are established and administered in
accordance with Minnesota Statutes, Chapters 353 and 356.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. All new members must participate in the
Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute
are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon
death of eligible members. Benefits are established by state statute, and vest after three years of credited
service. The defined retirement benefits are based on a member’s highest average salary for any five
successive years of allowable service, age, and years of credit at termination of service.
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 GERF and PEPFF. That report may be obtained on the internet at
, by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by
www.mnpera.org
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. GERF Basic Plan members and
Coordinated Plan members were required to contribute 9.10% and 6.25%, respectively, of their annual
covered salary in 2011. PEPFF members were required to contribute 9.6% of their annual covered
salary in 2011. The City was required to contribute the following percentages of annual covered
payroll in 2011: 11.78% for Basic Plan members, 7.25% for Coordinated Plan members, and 14.4% for
PEPFF members. The City’s contributions to the General Employees Retirement Fund for the years
ending December 31, 2011, 2010 and 2009 were $52,289, $50,534 and $47,320, respectively. The
City’s contributions to the Public Employees Police and Fire Fund for the years ending December 31,
2011, 2010 and 2009 were $106,220, $99,847 and $94,756, 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.
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
$10,723 for the year ended December 31, 2011.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 7 OTHER POST-EMPLOYMENT BENEFITS
In 2009, the City prospectively implemented the requirement of a new accounting pronouncement, GASB
Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than
Pensions.
A.PLAN DESCRIPTION
In addition to providing the pension benefits described in Note 6, the City provides post-employment
health care benefits (as defined in paragraph B) for retired employees through a single-employer
defined benefit plan. The City of Oak Park Heights, Minnesota OPEB plan is administered by the City.
The authority to provide these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a,
and 299A.465. The benefits, benefit levels, employee contributions and employer contributions are
governed by the City and can be amended by the City through its personnel manual and collective
bargaining agreements with employee groups. The Plan is not accounted for as a trust fund, an
irrevocable trust has not been established to account for the Plan. The Plan does not issue a separate
report.
B. BENEFITS PROVIDED
Retirees
The City is required by State Statute to allow retirees to continue participation in the City’s group health
insurance plan if the individual terminates service with the City through service retirement or disability
retirement. Eligibility for benefits is the earlier of age 55 and 3 years of service or age 65.
All health care coverage is provided through the City’s group health insurance plans. The retiree is
required to pay 100% of their premium cost for the City-sponsored group health insurance plan in
which they participate. The premium is a blended rate determined on the entire active and retiree
population. Since the projected claims costs for retirees exceed the blended premium paid by retirees,
the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those
afforded to active employees. Upon a retiree reaching age 65 years of age, Medicare becomes the
primary insurer and the City’s plan becomes secondary.
C. PARTICIPANTS
As of the January 1, 2009 actuarial valuation, participants consisted of:
Retirees and beneficiaries currently
purchasing health insurance through the City3
Active employees21
Total24
Participating employers1
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
D. FUNDING POLICY
The additional cost of using a blended rate for actives and retirees is currently funded on a pay-as-you-
go basis. The City Council may change the funding policy at any time.
E. ANNUAL OPEB COSTS AND NET OPEB OBLIGATION
The City’s annual other post employment benefit (OPEB) cost is calculated based on the annual
required contribution (ARC) of the employer, an amount actuarially determined in accordance with the
parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed 30 years. The net OPEB obligation as of
December 31, 2011, was calculated as follows:
Annual required contribution (ARC)$60,075
Interest on net OPEB obligation3,425
Adjustment to ARC(4,952)
Annual OPEB cost58,548
Contributions made during the year(23,177)
Increase in net OPEB obligation35,371
Net OPEB obligation - beginning of year85,636
Net OPEB obligation - end of year$121,007
The net OPEB obligation is allocated as follows:
Governmental activities$108,350
Business-type activities12,657
$121,007
For governmental activities, the net OPEB obligation is generally liquidated by the General Fund.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net
OPEB obligation for the previous three years was as follows:
Percentage of
Fiscal YearAnnual OPEBEmployer Annual OPEB CostNet OPEB
EndedCostContributionsContributedObligation
December 31, 2009$60,075$16,66927.7%$43,406
December 31, 2010$59,301$17,07128.8%$85,636
December 31, 2011$58,548$23,17739.6%$121,007
F. FUNDED STATUS AND FUNDING PROGRESS
The City currently has no assets that have been irrevocably deposited in a trust for future health
benefits; therefore, the actuarial value of assets is zero. The funded status of the plan as of the most
recent actuarial valuation date was as follows:
Unfunded
ActuarialActuarialUAAL as a
ActuarialActuarialAccruedAccruedFundedCoveredPercentage of
ValuationValue of AssetsLiability (AAL)*Liability (UAAL)RatioPayrollCovered Payroll
Date(a)(b)(b-a)(a/b)(c) ( (b-a) / c)
January 1, 2009$0$452,765$452,7650.0%$1,600,00028.3%
*Using the Projected Unit Credit Actuarial cost method.
G. ACTUARIAL METHODS AND ASSUMPTIONS
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality and the health care cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions (ARC) of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates are
made about the future. The schedule of funding progress, presented as required supplementary
information following the notes to financial statements, presents multi-year trend information that
shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of
each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are
designed to reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial
value of assets, consistent with the long-term perspective of the calculations.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
In the January 1, 2009 actuarial valuation, the Projected Unit Credit Actuarial cost method was used.
The actuarial assumptions included a 4.0% investment rate of return (net of administrative expenses)
and an initial annual health care cost trend rate of 10% reduced by 0.5% each year to arrive at an
ultimate health care cost trend rate of 5.0%. The actuarial value of assets was $0. The Plan’s unfunded
actuarial accrued liability is being amortized using the level percentage of projected payroll method
over 30 years on a closed basis. The remaining amortization period at December 31, 2011, was 27
years.
Note 8 INTERFUND TRANSFERS
Transfers In
Major Funds
Budgeted
Renewal and Projects and Nonmajor
Street Replacement Equipment Governmental
Total
ReconstructionFund RevolvingFunds
Transfers out:
Governmental activities:
General Fund$320,000$ - $280,240$212,000$812,240
Nonmajor Governmental Funds - - 21,450 - 21,450
Business-type activities:
Water Utility Fund - 87,10256,300127,208270,610
Sewer Utility Fund - 97,15636,300 - 133,456
Storm Sewer Utility Fund - - 8,300 - 8,300
Total transfers$320,000$184,258$402,590$339,208$1,246,056
During 2011, the City made routine interfund transfers to accumulate resources to be used for capital
improvements and to fund debt service expenditures.
Note 9 CONTINGENCIES AND COMMITMENTS
A.LITIGATION
In 2009, the City was named in a lawsuit commenced by the County of Washington in dispute over
utility billings for the years 2005 and 2006. The claim has been tendered to the City’s insurance carrier,
who has accepted defense of the claim.
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 are 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, 2011.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 10 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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 11 FUND BALANCE
The City adopted the provisions of Governmental Accounting Standards Board Statement No. 54, Fund Balance
Reporting and Governmental Fund Type Definitions for the year ended December 31, 2011. This standard
changed fund balance classifications for governmental fund statements. Definitions for the new classifications
are included in Note 1.O.
A.CLASSIFICATIONS
At December 31, 2011, a summary of the governmental fund balance classifications are as follows:
Budgeted
Projects andRenewal andOther
EquipmentStreetCity HallReplacementGovernmental
General FundRevolvingReconstructionImprovementsFundFundsTotal
Nonspendable:
Prepaid items$2,057$ - $ - $ - $ - $ - $2,057
Restricted for:
Law enforcement - - - - - 8,1558,155
Debt service - - - - - 112,571112,571
Park improvements - - - - - 311,502311,502
Moelter Park improvements - - - - - 601,668601,668
Total restricted000001,033,8961,033,896
Assigned for:
Compensated absences179,000 - - - - - 179,000
Capital purposes - 1,025,943 - - 4,378,7913,051,3818,456,115
Street reconstruction - - 2,133,008 - - - 2,133,008
City hall improvements - - - 115,659 - - 115,659
Economic development - - - - - 31,19831,198
Total assigned179,0001,025,9432,133,008115,6594,378,7913,082,57910,914,980
Unassigned3,080,504 - - - - - 3,080,504
Total$3,261,561$1,025,943$2,133,008$115,659$4,378,791$4,116,475$15,031,437
B.MINIMUM UNASSIGNED FUND BALANCE POLICY
The City Council has formally adopted a policy regarding the minimum unassigned fund balance for the
General Fund. The most significant revenue source of the General Fund is property taxes. This
revenue source is received in two installments during the year – June and December. As such, it is the
City’s goal to begin each fiscal year with sufficient working capital to fund operations between each
semi-annual receipt of property taxes.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
The policy states the City will maintain an unassigned fund balance in the General Fund for the
following purposes and in the following amounts:
For cash flow needs – an amount should be established equal to 45-55% of the subsequent
year’s budgeted operating expenditures.
For emergencies or contingencies (such as revenue shortfalls or unexpected budget over runs)
– an amount should be established equal to 10 – 15% of the ensuing year’s General Fund
operating expenditures.
At December 31, 2011, the unassigned fund balance of the General Fund was $3,080,504, which
sufficiently meets the cash flow and emergency needs described above.
Note 12 MAJOR TAXPAYER
The City has one major taxpayer, Xcel Energy. The total tax capacity value for this taxpayer represented
approximately 36% of the City's total tax capacity value for taxes payable in 2011.
Note 13 TAX INCREMENT DISTRICT
The City is the administrating authority for Tax Increment District 1-1 (Oakgreen Project). During 2010, the
City and the developer signed a $1,200,000 tax increment pay-as-you-go revenue note relating to this district.
The note is not a general obligation of the City and is payable solely from available tax increments.
Accordingly, the note is not reflected in the financial statements of the City. A summary of the note is as
follows:
Tax Increment Revenue Note, TIF 1-1 – issued in 2010 in the principal sum of $1,200,000 with an interest rate
of 6.90% per annum. Principal and interest payments shall be payable on each February 1 and August 1
following the date of the note to and including February 1, 2026. Payments are payable solely from available tax
increment, which shall mean 80% of the tax increment derived from the development property and received by
the City. The City shall have no obligation to pay unpaid balance of principal or accrued interest that may
remain after the final payment on February 1, 2026. At December 31, 2011 the principal amount outstanding on
the note was $1,200,000.
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, 2011, there were three series of Industrial Revenue Bonds outstanding. The principal
amount payable at December 31, 2011 was $90,578,814.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 15 OPERATING LEASES
The City leases space in and above its water tower. The space is used for antennas and other equipment necessary to
provide radio communications. Lease terms are as follows:
2011
LeaseAnnual LeaseExpirationRenewal
LocationLesseeAmountAdjustment Factor*DateOptions
58th and NorrellSprint PCS$27,861Greater of CPI or 5%9/20/20142 5-year terms
*Amounts for future lease receipts are unavailable because they are based on the Consumer Price Index.
Note 16 PRIOR PERIOD ADJUSTMENT
On January 1, 2011, the City recorded prior period adjustments in the Water, Sewer and Storm Sewer Utility
Funds. Revenues and net assets previously reported were overstated due to overbillings of utility revenues.
Beginning net assets have been restated as follows:
WaterSewerStorm Sewer
FundFundFund
Net assets - January 1 as previously reported$4,675,815$3,057,261$186,745
Prior period adjustment(9,729)(13,766)(69,132)
Net assets - January 1 as restated$4,666,086$3,043,495$117,613
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 1 of 5
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2011
With Comparative Actual Amounts For The Year Ended December 31, 2010
Variance
with Final
Budget -
2011 Actual Positive2010 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Revenues:
PttProperty taxes$34824553,482,455$34824553,482,455$35236733,523,673$4121841,218$32791903,279,190
$$$$$
Abatement of property taxes - - (10,026)
Payment in lieu of taxes49,00049,00059,81410,81435,840
Total property taxes3,531,4553,531,4553,583,48752,0323,305,004
Intergovernmental:
Energy efficiency and conservation block grant - - - - 73,895
PERA aid2,0402,0402,040 - 2,040
Policeaid65000,65000,63278,(1722),58930,
Policeaid650006500063278(1722)58930
Recycling grant10,00010,00011,6121,61211,312
Safe and Sober grant11,00011,0009,970(1,030)11,118
Utility valuation transition aid - - - - 102,947
Other general government grants - - 4,0004,000 -
Other public safety grants - - - - 5,711
Other public works grants - - 6,5426,54213,458
Total intergovernmental88,04088,04097,4429,402279,411
g,,,,,
Licenses and permits87,30087,300131,08143,781197,181
Charges for services:
General government9,5009,50018,1278,62777,386
Administrative - Enterprise Fund69,42569,42569,425 - 66,420
Total charges for services78,92578,92587,5528,627143,806
Fines and forfeits60,50060,50057,862(2,638)58,365
Investment income40,00040,00041,3781,37850,675
RfddibRefunds and reimbursements100000100,000100,000129,31329,313124,70510000012931329313124705
Total revenues3,986,2203,986,2204,128,115141,8954,159,147
Expenditures:
General government:
Mayor and city council:
Current:
Current:
Personal services58,82058,82057,4081,41257,924
Materials and supplies800800177623304
Other services and charges31,94031,94022,5749,36620,021
Total mayor and city council91,56091,56080,15911,40178,249
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 2 of 5
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2011
With Comparative Actual Amounts For The Year Ended December 31, 2010
Variance
with Final
Budget -
2011 Actual Positive2010 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Expenditures: (continued)
Glt(tid)General government: (continued)
City administration:
Current:
Personal services$196,830$196,830$194,542$2,288$192,846
Materials and supplies2,8502,8501,6261,2241,324
Other services and charges53,32053,32041,06012,26048,954
Total City administration253,000253,000237,22815,772243,124
Legal:
Legal:
Current:
Personal services29,70029,70015,72413,97616,333
General management and building:
Current:
Materials and supplies8,2008,2007,2829187,865
Other services and charges114,205114,205125,705(11,500)80,775
Total general management and building122,405122,405132,987(10,582)88,640
ggg,,,(,),
Elections:
Current:
Personal services - - 1,928(1,928)5,503
Materials and supplies - - 169(169)399
Other services and charges940940982(42)988
Total elections9409403,079(2,139)6,890
Finance:
CCurrent:
Personal services196,760196,760195,4731,287268,244
Materials and supplies3,3003,3002,8054952,424
Other services and charges38,81538,81532,9745,84140,160
Total finance238,875238,875231,2527,623310,828
Computer system:
Current:
Materialsandsupplies2900,2900,2100,8001583,
Materialsandsupplies2900290021008001583
Other services and charges21,20021,20021,10010021,946
Total computer system24,10024,10023,20090023,529
Audit:
Current:
Personal services21,25021,25027,500(6,250)22,009
Insurance:
Current:
Current:
Other services and charges341,000341,000337,0183,982339,362
Assessing:
Current:
Personal services21,66021,66021,6441620,626
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 3 of 5
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2011
With Comparative Actual Amounts For The Year Ended December 31, 2010
Variance
Variance
with Final
Budget -
2011 Actual Positive2010 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Expenditures: (continued)
General government: (continued)
g()
Planning and zoning:
Current:
Personal services$34,000$34,000$25,125$8,875$67,184
Materials and supplies - - 314(314)107
Other services and charges1,8001,8007751,0251,430
Total planning and zoning35,80035,80026,2149,58668,721
Engineering:
CtCurrent:
Other services and charges32,00032,00013,59918,40114,359
General contingency:
Current:
Other services and charges9,9009,9001,2918,6096,389
Total general government1,222,1901,222,1901,150,89571,2951,239,059
Publicsafety:
Publicsafety:
Police department:
Current:
Personal services882,700882,700843,27539,425812,340
Materials and supplies53,80053,80039,82513,97544,397
Other services and charges180,055180,055162,32017,735166,657
Total police department1,116,5551,116,5551,045,42071,1351,023,394
Building inspections:
gp
Current:
Personal services108,090108,090107,362728103,750
Materials and supplies1,7501,750897853971
Other services and charges21,57021,57017,6843,88616,938
Total building inspections131,410131,410125,9435,467121,659
Fire protection:
Current:
MtildliMaterials and supplies20002,0002,000 - 2,0002,000200020002000
Other services and charges166,100166,100153,33612,764158,826
Total fire protection168,100168,100153,33614,764160,826
Civil defense:
Current:
Other services and charges5,0505,050904,960692
Animal control:
Current:
Current:
Materials and supplies1501504510552
Other services and charges1,4851,4851,0973881,160
Total animal control1,6351,6351,1424931,212
Total public safety1,422,7501,422,7501,325,93196,8191,307,783
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 4 of 5
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2011
With Comparative Actual Amounts For The Year Ended December 31, 2010
Variance
with Final
Budget -
2011 Actual Positive2010 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Expenditures: (continued)
PblikPublic works:
Street maintenance:
Current:
Personal services$21,030$21,030$19,851$1,179$17,366
Materials and supplies11,08011,08011,504(424)8,079
Other services and charges29,24529,24519,03310,21216,232
Total street maintenance61,35561,35550,38810,96741,677
Snowremoval:
Snowremoval:
Current:
Materials and supplies1,0001,00095842232
Other services and charges121,750121,75093,51828,232146,407
Total snow removal122,750122,75094,47628,274146,639
Sanitation:
Current:
Other services and charges190,800190,800194,610(3,810)190,627
g,,,(,),
Street lighting:
Current:
Other services and charges68,00068,00066,0741,92661,489
Arborist:
Current:
Personal services14,85014,85014,8252516,512
Materials and supplies100100 - 100 -
OhidhOther services and charges250250250150100131250150100131
Total arborist15,20015,20014,97522516,643
Tree removal and planting:
Current:
Other services and charges37,50037,50024,99712,50330,532
Total public works495,605495,605445,52050,085487,607
Parksandrecreation:
Parksandrecreation:
Parks, playgrounds and rinks:
Current:
Personal services67,78067,78049,23218,54849,234
Materials and supplies16,47516,47511,8614,61411,112
Other services and charges80,68080,68052,69927,98147,683
Capital outlay - - 1,983(1,983)36,459
Totalparks and recreation164,935164,935115,77549,160144,488
Totalparksandrecreation164,935164,935115,77549,160144,488
Total expenditures3,305,4803,305,4803,038,121267,3593,178,937
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 5 of 5
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2011
With Comparative Actual Amounts For The Year Ended December 31, 2010
Variance
with Final
Budget -
2011 Actual Positive2010 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
RRevenues over expendittures
$680740680,740$680740680,740$10899941,089,994$409254409,254$980210980,210
di$$$$$
Other financing sources (uses):
Sale of property - - 10,01010,010425
Transfers out(780,740)(780,740)(812,240)(31,500)(726,850)
Total other financing sources (uses)(780,740)(780,740)(802,230)(21,490)(726,425)
Netchangeinfundbalance($100000),($100000),287764,$387764,253785,
Netchangeinfundbalance($100000)($100000)287764$387764253785
Fund balance - January 12,973,7972,720,012
Fund balance - December 31$3,261,561$2,973,797
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS - RETIREE HEALTH PLAN
For The Year Ended December 31, 2011
UnfundedUAAL As A
ActuarialActuarialActuarialPercentage of
ActuarialValue ofAccruedLiabilityFundedCoveredCovered
ValuationAssetsLiability (AAL)*(UAAL)RatioPayrollPayroll
Date(a)(b)(b-a)(a/b)(c)( (b-a) / c)
January 1, 2009$0$452,765$452,7650.0%$1,600,00028.3%
*Using the Projected Unit Credit Actuarial cost method.
The City implemented GASB Statement No. 45 for the fiscal year ended December 31, 2009. Information for prior years is
not available.
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2011
Note A BUDGETS
The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted
in the United States of America. The legal level of budgetary control is at the department level for the General
Fund.
COMBINING AND INDIVIDUAL NONMAJOR
FUND FINANCIAL STATEMENTS
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NONMAJOR GOVERNMENTAL FUNDS
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 11
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2011
With Comparative Totals For December 31, 2010
Totals
Nonmajor
SpecialDebtCapitalGovernmental Funds
AssetsRevenueServiceProject20112010
Cash and investments$38,884$108,685$3,943,826$4,091,395$4,300,869
Accrued interest receivable6271,17440,09841,89939,890
Taxes receivable:
Delinquent - - - - 10,903
Due from county - 2,712 - 2,7123,273
Special assessments receivable:
Deferred - - 55,52955,52974,038
Land held for resale168,518 - - 168,518168,518
Total assets$208,029$112,571$4,039,453$4,360,053$4,597,491
Liabilities and Fund Balance
Liabilities:
Accounts payable$158$ - $8,768$8,926$ -
Contracts payable - - 10,60510,605 -
Depositspayable---- 50,000,
Depositspayable----50000
Deferred revenue168,518 - 55,529224,047253,459
Total liabilities168,676074,902243,578303,459
Fund balance:
Restricted8,155112,571913,1701,033,8961,096,269
Assigned31,198 - 3,051,3813,082,5793,197,763
Total fund balance39,353112,5713,964,5514,116,4754,294,032
Total liabilities and fund balance$208,029$112,571$4,039,453$4,360,053$4,597,491
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 12
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2011
With Comparative Totals For The Year Ended December 31, 2010
Totals
Special DebtCapitalNonmajor Governmental Funds
RevenueServiceProject20112010
Revenues:
General property taxes$ - $400,902$ - $400,902$392,805
Charges for services - - 46,68546,685417,605
Fines and forfeits2,960 - - 2,96015,396
Special assessments - - 22,95222,95228,583
Investment income1,0932,04869,88773,02889,748
Refunds and reimbursements - - - - 531
Total revenues4,053 402,950 139,524 546,527 944,668
Expenditures:
Current:
General government3,831 - - 3,8319,241
Public safety17,733 - - 17,7332,613
Public works - - 24,01324,0134,825
Parks and recreation - - 10,33210,332 -
Capital outlay31,607 - 432,651464,258185,154
Debt service:
Principal - 255,000 - 255,000250,000
Interest - 266 ,,675 - 266 ,,675272,,000
Interest266675266675272000
Total expenditures53,171 521,675 466,996 1,041,842 723,833
Revenues over (under) expenditures(49,118)(118,725)(327,472)(495,315)220,835
Other financing sources (uses):
Transfers in - 134,000205,208339,208477,853
Transfers out - - (21,450)(21,450)(150,000)
Total other financing sources (uses)0 134,000 183,758 317,758 327,853
Net change in fund balance(49,118)15,275 (143,714)(177,557)548,688
Fund balance - January 188,47197,2964,108,2654,294,0323,745,344
Fund balance - December 31$39,353$112,571$3,964,551$4,116,475$4,294,032
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 13
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2011
With Comparative Totals For December 31, 2010
202 Forfeiture 204 Economic
Totals Nonmajor Special Revenue
and SeizureDevelopment
Funds
Assets20112010
Cash and investments$7,860$31,024$38,884$87,502
Accrued interest receivable295332627969
Land held for resale - 168,518168,518168,518
Total assets$8,155$199,874$208,029$256,989
Liabilities and Fund Balance
Liabilities:
Accounts payable$ -$158$158$ -
Deferred revenue - 168,518168,518168,518
Total liabilities0168,676168,676168,518
Fund balance:
Restricted8,155 - 8,15554,021
Assigned -31,19831,19834,450
Total fund balance8,,15531,,19839,,35388,,471
Totalfundbalance8155311983935388471
Total liabilities and fund balance$8,155$199,874$208,029$256,989
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 14
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2011
With Comparative Totals For The Year Ended December 31, 2010
202 Forfeiture 204 Economic
Totals Nonmajor Special Revenue
and SeizureDevelopment
Funds
20112010
Revenues:
Investment income$514$579$1,093$2,179
Refunds and reimbursements - - - 531
Confiscated property2,960 - 2,96015,396
Total revenues3,4745794,05318,106
Expenditures:
General government:
Current:
Contractual services -3,8313,8319,241
Public safety:
Current:
Materials and supplies12,944 - 12,9442,463
Contractual services4,789 - 4,789150
Capital outlay31,607 - 31,607168,518
Total expenditures49,3403,83153,171 180,372
Revenuesover(under)expenditures(45,866),(3,252),(49,118),(162,266),
Revenuesover(under)expenditures(45866)(3252)(49118)(162266)
Other financing sources (uses):
Transfers in - - - 150,000
Net change in fund balance(45,866)(3,252)(49,118)(12,266)
Fund balance - January 154,02134,45088,471100,737
Fund balance - December 31$8,155$31,198$39,353$88,471
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 15
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2011
With Comparative Totals For December 31, 2010
526 G.O. Capital 527 G.O. Capital
ImprovementImprovement
Bonds of 2008Bonds of 2009
Total Nonmajor Debt Service Funds
20112010
Assets
Cash and investments$95,904$12,781$108,685$92,967
Accrued interest receivable8922821,1741,056
Taxes receivable:
Delinquent - - - 10,903
Due from county2,712 - 2,7123,273
Total assets$99,508 $13,063 $112,571 $108,199
Liabilities and Fund Balance
Liabilities:
Deferred revenue$ - $ - $ - $10,903
Fund balance:
Restricted99,50813,063112,57197,296
Total liabilities and fund balance$99,508 $13,063 $112,571 $108,199
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 16
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2011
With Comparative Totals For The Year Ended December 31, 2010
3
526 G.O. 527 G.O.
CapitalCapital
ImprovementImprovement
Total Nonmajor Debt Service
Bonds of 2008Bonds of 2009
Funds
20112010
Revenues:
General property taxes$400,902$ - $400,902$392,805
Investment income1,5564922,0482,376
Total revenues402,458492402,950395,181
Expenditures:
Debt service:
Principal155,000100,000255,000250,000
Interest237,52529,150266,675272,000
Total expenditures392,525129,150521,675522,000
Revenues over (under) expenditures9,933 (128,658)(118,725)(126,819)
Other financing sources:
Transfers in - 134,000134,000122,000
Net change in fund balance9,9335,34215,275(4,819)
Fund balance - January 189,5757,72197,296102,115
Fund balance - December 31$99,508 $13,063 $112,571 $97,296
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2011
With Comparative Totals For December 31, 2010
712 Storm
Sewer Renewal 734 Water
405 Park 407 Moelter 500 Capital / Replacement Tower
DevelopmentParkRevolving FundFundRehabilitation
Assets
Cash and investments$738,164$625,041$299,500$319,900$63,152
Accrued interest receivable7,5486,2602,9482,6222,026
Special assessments receivable:
Deferred - - 55,529 - -
Total assets$745,712 $631,301 $357,977 $322,522 $65,178
Liabilities and Fund Balance
Liabilities:
Accounts payable$ - $3,601$3,590$ - $1,577
Contracts payable - - - - 10,605
Deposits payable - - - - -
Deferred revenue - - 55,529 - -
Totalliabilities03,601,59,119,012,182,
Totalliabilities0360159119012182
Fund balance:
Restricted311,502601,668 - - -
Assigned434,21026,032298,858322,52252,996
Total fund balance745,712 627,700 298,858 322,522 52,996
Total liabilities and fund balance $745,712 $631,301 $357,977 $322,522 $65,178
Statement 17
771 Sanitary 773 AAE -
735 Well 736 Sewer Sewer772 Water Storm Sewer
Totals Nonmajor Capital Project
RehabilitationRehabilitationConnectionConnectionConnection
Funds
20112010
$92,645$43,165$403,397$431,220$927,642$3,943,826$4,120,400
7884294,0044,2609,21340,09837,865
- - - - - 55,52974,038
$93,433 $43,594 $407,401 $435,480 $936,855 $4,039,453 $4,232,303
$ - $ - $ - $ - $ - $8,768$ -
- - - - - 10,605 -
- - - - - - 50,000
- - - - - 55,52974,038
0000074,902,124,038,
0000074902124038
- - - - - 913,170944,952
93,43343,594407,401435,480936,8553,051,3813,163,313
93,433 43,594 407,401 435,480 936,855 3,964,551 4,108,265
$93,433 $43,594 $407,401 $435,480 $936,855 $4,039,453 $4,232,303
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2011
With Comparative Totals For The Year Ended December 31, 2010
712 Storm
Sewer Renewal 734 Water
405 Park 407 Moelter 500 Capital / Replacement Tower
DevelopmentParkRevolving FundFundRehabilitation
Revenues:
Charges for services:
Connections charges$ - $ - $ - $ - $ -
Rents - - - - 27,861
Park dedication fee - - - - -
Special assessments - - 22,952 - -
Investment income13,15510,9105,1384,5693,532
Total revenues13,15510,91028,0904,56931,393
Expenditures:
Public works:
Current:
Contractual services - - 24,013 - -
Parks and recreation:
Current - 10,332 - - -
Capital outlay - - - - 432,651
Total expenditures010,33224,0130432,651
Revenues over (under) expenditures13,1555784,0774,569(401,258)
Other financing sources (uses):
Transfers in - - - 78,000113,875
Transfers out(21,450) - - - -
Total other financing sources (uses)(21,450)0078,000113,875
Net change in fund balance(8,295)5784,07782,569(287,383)
Fund balance - January 1754,007627,122294,781239,953340,379
Fund balance - December 31$745,712 $627,700 $298,858 $322,522 $52,996
Statement 18
771 Sanitary 773 AAE -
735 Well 736 Sewer Sewer772 Water Storm Sewer
Totals Nonmajor Capital Project
RehabilitationRehabilitationConnectionConnectionConnection
Funds
20112010
$ - $ - $2,686$13,960$2,178$18,824$147,098
- - - - - 27,86129,067
- - - - - - 241,440
- - - - - 22,95228,583
1,3747476,9787,42516,05969,88785,193
1,3747479,66421,38518,237139,524531,381
- - - - - 24,0134,825
- - - - - 10,332 -
- - - - - 432,65116,636
00000466,99621,461
1,3747479,66421,38518,237(327,472)509,920
13,333 - - - - 205,208205,853
- - - - - (21,450)(150,000)
13,3330000183,75855,853
14,7077479,66421,38518,237(143,714)565,773
78,72642,847397,737414,095918,6184,108,2653,542,492
$93,433 $43,594 $407,401 $435,480 $936,855 $3,964,551 $4,108,265
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 19
SUBCOMBINING BALANCE SHEET
AGENCY FUNDS
December 31, 2011
With Comparative Totals For December 31, 2010
902 Developer 903 Developer
Deposit FundEscrow FundTotals - Agency Funds
20112010
Assets
Cash and investments$92,258$146,500$238,758$185,338
Due from developers17,168 - 17,16815,735
Total assets$109,426 $146,500 $255,926 $201,073
Liabilities
Escrow deposits payable$ - $146,500$146,500$96,500
Accounts payable7,502 - 7,5026,551
Due to developers101,924 - 101,92498,022
Total liabilities$109,426 $146,500 $255,926 $201,073
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 20
SUBCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2011
BalanceBalance
January 1,December 31,
2011AdditionsDeletions2011
902 Developer Deposit Fund
Assets:
Cash and investments$88,838$32,469$29,049$92,258
Due from developers15,73517,16815,73517,168
Total assets$104,573$49,637$44,784$109,426
Liabilities:
Accounts payable$6,551$7,502$6,551$7,502
Due to developers98,02242,13538,233101,924
Total liabilities$104,573$49,637$44,784$109,426
903 Developer Escrow Fund
Assets:
Cash and investments$96,500$68,500$18,500$146,500
Liabilities:
Escrow deposits payable$96,500$68,500$18,500$146,500
Total Agency:
Assets:
Cash and investments$185,338$100,969$47,549$238,758
Due from developers15,73517,16815,73517,168
Total assets$201,073$118,137$63,284$255,926
Liabilities:
Escrow deposits payable$96,500$68,500$18,500$146,500
Accounts payable6,5517,5026,5517,502
Due to developers98,02242,13538,233101,924
Total liabilities$201,073$118,137$63,284$255,926
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STATISTICAL SECTION (UNAUDITED)
CITY OF OAK PARK HEIGHTS, MINNESOTA
NET ASSETS BY COMPONENT
(1)
Last Eight Fiscal Years
(Accrual Basis of Accounting)
200420052006
Governmental activities:
Invested in capital assets, net of related debt$10,059,989$9,928,521$11,481,494
Restricted1,192,681856,611899,708
Unrestricted7,326,0308,213,51310,290,018
Total governmental activities net assets$18,578,700$18,998,645$22,671,220
Business-type activities:
Invested in capital assets, net of related debt$5,646,237$5,985,350$5,826,582
Unrestricted834,8271,108,0691,382,163
Total business-type activities net assets$6,481,064$7,093,419$7,208,745
Primary government:
Invested in capital assets, net of related debt$15,706,226$15,913,871$17,308,076
Restricted1,192,681856,611899,708
Unrestricted8,160,8579,321,58211,672,181
Total primary government net assets$25,059,764$26,092,064$29,879,965
(1)
The City implemented GASB Statement No. 34 for the fiscal year ended December 31, 2004. Therefore, information for years
prior to 2004 is not available.
Table 1
20072008200920102011
$11,799,071$12,328,032$11,908,771$11,519,528$11,381,436
614,170235,559867,1031,234,8351,152,789
10,950,97811,705,19212,164,92513,308,71213,958,689
$23,364,219$24,268,783$24,940,799$26,063,075$26,492,914
$6,355,129$6,227,796$6,925,825$6,752,968$6,964,787
1,355,5641,165,2051,156,2081,166,8531,135,679
$7,710,693$7,393,001$8,082,033$7,919,821$8,100,466
$18,154,200$18,555,828$18,834,596$18,272,496$18,346,223
614,170235,559867,1031,234,8351,152,789
12,306,54212,870,39713,321,13314,475,56515,094,368
$31,074,912$31,661,784$33,022,832$33,982,896$34,593,380
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN NET ASSETS
(1)
Last Eight Fiscal Years
(Accrual Basis of Accounting)
200420052006
Expenses
Governmental activities:
General government$832,609$882,800$987,597
Public safety1,155,2431,210,1791,226,042
Public works602,111511,137755,989
Parks and recreation123,737138,378152,899
Interest on long-term debt67,36555,69543,965
Total governmental activities expenses2,781,0652,798,1893,166,492
Business-type activities:
Water323,527373,996398,766
Sanitary sewer517,595560,876661,367
Storm sewer41,08234,15065,149
Sanitation167,258164,572147,565
Total business-type activities expenses1,049,4621,133,5941,272,847
Total primary government expenses$3,830,527$3,931,783$4,439,339
Program revenues
Governmental activities:
Charges for services:
Licenses and permits$304,594$365,512$306,266
Inspections - City of Bayport50,33784,719 -
Administrative - Enterprise Fund90,86094,14064,465
Direct charges to developers315,535139,191938,298
Connection charges -18,326780,141
Park fees -22,9521,004,240
Refunds and reimbursements91,784106,569155,080
Other activities95,523144,559116,793
Operating grants and contributions68,35888,22974,105
Capital grants and contributions212,63562,686165,397
Total governmental activities program revenues1,229,6261,126,8833,604,785
Business-type activities:
Charges for services:
Water388,198423,876502,407
Sanitary sewer577,253705,456767,207
Storm sewer96,90973,54674,173
Sanitation70,87896,85997,266
Operating grants and contributions - - -
Capital grants and contributions58,706 - -
Total business-type activities
program revenues1,191,9441,299,7371,441,053
Total primary government program revenues$2,421,570$2,426,620$5,045,838
Table 2
Page 1 of 2
20072008200920102011
$1,046,676$1,477,836$1,356,038$1,575,297$1,381,589
1,234,7691,347,1641,364,7341,407,1611,411,690
796,025796,532957,308980,630999,473
184,008224,426211,795201,716239,100
37,255138,399262,586280,548275,196
3,298,7333,984,3574,152,4614,445,3524,307,048
387,766405,965434,577466,218472,040
606,458670,661680,468740,184746,656
34,27759,11543,337108,46748,360
153,848 - - - -
1,182,3491,135,7411,158,3821,314,8691,267,056
$4,481,082$5,120,098$5,310,843$5,760,221$5,574,104
$155,820$203,041$100,074$197,181$131,081
- - - - -
63,20062,04064,40066,42069,425
244,895 - - - -
34,595 -5,419147,09818,824
- - -241,440 -
105,832153,267112,856117,735114,847
151,00284,905112,161180,639107,860
142,87990,54888,187145,04896,402
11,32410,091688,97576,97015,943
909,547603,8921,172,0721,172,531554,382
482,100475,658546,606565,859648,663
679,821656,809651,022749,378782,266
73,94274,25774,47375,69866,740
97,764494 - - -
- - - -4,594
- - - - -
1,333,6271,207,2181,272,1011,390,9351,502,263
$2,243,174$1,811,110$2,444,173$2,563,466$2,056,645
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN NET ASSETS
(1)
Last Eight Fiscal Years
(Accrual Basis of Accounting)
200420052006
Net (expense) revenue:
Governmental activities($1,551,439)($1,671,306)$438,293
Business-type activities142,482166,143168,206
Total primary government net
(expense) revenue(1,408,957)(1,505,163)606,499
General revenues and other changes in net assets
Governmental activities:
General property taxes1,979,2882,222,3352,417,014
Unrestricted grants and contributions3,0602,04029,838
Investment earnings199,737258,614425,160
Gain on sale of property - -244,099
Miscellaneous29,12525,20616,254
Transfers90,423(416,944)101,917
Total governmental activities2,301,6332,091,2513,234,282
Business-type activities:
Investment earnings19,14829,26849,037
Transfers(90,423)416,944(101,917)
Total business-type activities(71,275)446,212(52,880)
Total primary government$2,230,358$2,537,463$3,181,402
Change in net assets:
Governmental activities$750,194$419,945$3,672,575
Business-type activities71,207612,355115,326
Total primary government$821,401$1,032,300$3,787,901
(1)
The City implemented GASB Statement No. 34 for the fiscal year ended December 31, 2004. Therefore, information
for years prior to 2004 is not available.
Table 2
Page 2 of 2
20072008200920102011
($2,389,186)($3,380,465)($2,980,389)($3,272,821)($3,752,666)
151,27871,477113,71976,066235,207
(2,237,908)(3,308,988)(2,866,670)(3,196,755)(3,517,459)
2,730,9943,146,0493,537,8293,692,1273,934,309
111,09056,693180,430104,9872,040
532,827606,996456,934320,183239,763
9,23720,89512,165 -8,960
27,62622,14814,18616,58817,718
(329,589)432,248(549,139)261,212(20,285)
3,082,1854,285,0293,652,4054,395,0974,182,505
60,10343,08026,17422,93417,780
329,589(432,248)549,139(261,212)20,285
389,692(389,168)575,313(238,278)38,065
$3,471,877$3,895,861$4,227,718$4,156,819$4,220,570
$692,999$904,564$672,016$1,122,276$429,839
540,970(317,691)689,032(162,212)273,272
$1,233,969$586,873$1,361,048$960,064$703,111
CITY OF OAK PARK HEIGHTS, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2002200320042005
General Fund:
Nonspendable$ - $ - $ - $ -
Assigned for:
Employee benefits122,365128,458133,961141,533
Ensuing year's budget - - - -
Unassigned:
Cash flow reserve973,000996,0001,147,0001,237,000
General contingency reserve233,864368,000419,000439,000
Remaining unassigned balance - 202,153147,647286,210
Total general fund$1,329,229$1,694,611$1,847,608$2,103,743
All other governmental funds:
Restricted for:
Debt service$588,131$590,209$454,694$214,783
Park improvements - - - -
Law enforcement - - - -
Assigned, reported in:
Special revenue funds79,34283,98481,16775,721
Debt service funds - - - -
Capital projects funds4,374,4345,162,6295,381,7346,107,908
Total all other governmental funds$5,041,907$5,836,822$5,917,595$6,398,412
Notes: The City implemented GASB Statement No. 54 for the fiscal year ended December 31, 2011. Prior to 2011, fund
balance was reported as reserved, designated or undesignated. Beginning in 2011, fund balance is reported as
nonspendable, restricted, committed, assigned or unassigned.
Table 3
200620072008200920102011
$ - $ - $ - $ - $ - $2,057
169,633183,000188,000188,000172,000179,000
- - -193,635100,000 -
1,409,0001,698,0001,541,0001,558,0001,593,0001,911,000
493,000595,000542,000557,000554,000698,000
230,86939,620345,370223,377554,797471,504
$2,302,502$2,515,620$2,616,370$2,720,012$2,973,797$3,261,561
$717,829$460,263$127,247$102,115$97,296$112,571
- - - - -913,170
- - - - -8,155
86,326100,960102,181100,73788,47131,198
47,315 - - - - -
8,022,5888,480,88414,977,67813,236,36111,188,96810,704,782
$8,874,058$9,042,107$15,207,106$13,439,213$11,374,735$11,769,876
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
(1)
Last Eight Fiscal Years
200420052006
Revenues:
General property taxes$1,969,207$2,218,906$2,423,246
Special assessments305,758225,516553,450
Licenses and permits304,594365,512306,266
Intergovernmental70,362101,519102,818
Charges for services150,126294,8461,886,776
Fines and forfeits78,27469,85084,730
Investment income199,737258,614425,160
Direct charges to developers374,241139,191938,298
Refunds and reimbursements109,958125,405155,080
Donations and contributions20,32710,117136,514
Total revenues3,582,584 3,809,476 7,012,338
Expenditures:
Current:
General government793,871851,437941,875
Public safety1,119,5331,172,8031,180,441
Public works296,997208,848423,010
Parks and recreation88,18099,980107,071
Capital outlay672,322379,3441,797,017
Debt service:
Principal retirement400,000395,000190,000
Interest and other68,33456,71044,535
Bond issuance costs - - -
Total expenditures3,439,237 3,164,122 4,683,949
Revenues over (under) expenditures143,347645,354 2,328,389
Other financing sources (uses):
Sale of capital assets - - 244,099
Bonds issued - - -
Premium on bonds issued - - -
Transfers in178,923180,098190,417
Transfers out(88,500)(88,500)(88,500)
Total other financing sources (uses)90,42391,598346,016
Net change in fund balance$233,770$736,952$2,674,405
Debt service as a percentage of noncapital expenditures16.9%16.2%8.1%
Debt service as percentage of total expenditures 13.6%14.3%5.0%
(1)
The City implemented GASB Statement No. 34 for the fiscal year ended December 31, 2004. Therefore, information
for years prior to 2004 is not available.
Table 4
20072008200920102011
$2,687,730$3,156,807$3,470,670$3,697,809$3,984,389
42,34232,07843,81028,58322,952
155,820203,041100,074197,181131,081
188,594141,141276,772282,55197,442
192,545102,199107,392561,411134,237
66,18963,60274,58873,76160,822
532,827606,996456,934320,183239,763
244,895 - - - -
105,832134,987137,422134,323132,565
83,06427,672612,5252,18412,500
4,299,838 4,468,523 5,280,187 5,297,986 4,815,751
1,002,7631,075,6161,117,8221,370,3811,178,710
1,193,4511,292,4651,277,6001,312,3351,351,567
458,241632,530586,872592,897605,955
138,491146,928139,188125,414129,327
1,327,754901,5644,957,6533,583,666767,988
125,000750,000135,000250,000255,000
37,688134,850255,213272,000266,675
-111,02033,537 - -
4,283,388 5,044,973 8,502,885 7,506,693 4,555,222
16,450 (576,450)(3,222,698)(2,208,707)260,529
9,23721,28912,20042510,010
-6,300,0001,195,000 - -
-5,827 - - -
432,2801,790,9261,144,241397,589412,366
(76,800)(1,275,843)(792,994) - -
364,717 6,842,199 1,558,447 398,014 422,376
$381,167$6,265,749($1,664,251)($1,810,693)$682,905
5.5%21.9%11.1%13.3%13.8%
3.8%17.5%4.6%7.0%11.5%
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 5
TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Adjusted
FiscalLess:Tax Capacity
YearCommercial/TotalFiscalAdjustedTotalEstimatedas a Percent
EndedResidentialIndustrialPublicAllTaxDisparityTax CapacityDirect TaxMarketof Total Tax
December 31,PropertyPropertyUtilityOtherCapacityContributionValueRateValueCapacity
2002$2,126,118$1,554,221$1,399,706$83,395$5,163,440$611,097$4,552,34341.741$349,905,80088.16%
20032,390,9182,058,2691,430,73494,6225,974,543657,6515,316,89235.799406,640,80088.99%
20042,603,2442,303,4611,417,841121,3816,445,927798,0485,647,87934.382447,871,20087.62%
20052,907,9262,526,8581,378,249105,9076,918,940954,5785,964,36236.488485,026,70086.20%
20063,269,4682,687,6501,415,909112,9217,485,9481,037,7536,448,19538.377539,357,10086.14%
20073,318,0523,331,9101,733,70388,0738,471,7381,115,2157,356,52335.731579,089,80086.84%
20083,429,1043,679,1883,060,14482,32910,250,7651,508,6608,742,10536.343673,570,60085.28%
20093,483,7263,952,5233,568,95793,83211,099,0382,177,6788,921,36038.732718,753,40080.38%
20103,304,1103,869,5683,311,71687,48010,572,8742,492,1118,080,76343.845682,742,10076.43%
20113,202,6133,676,9853,454,88092,82210,427,3002,117,4568,309,84445.028674,199,10079.69%
Source: Continuing Disclosure Document
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 6
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES
Last Ten Fiscal Years
CityOverlapping Rates
FiscalDirectSchoolOther
YearRateCountyDistrictDistrictsTotal
200241.74134.39528.40711.934116.477
200335.79933.30326.56612.067107.735
200434.38231.20118.74610.79195.120
200536.48828.59919.3936.41290.892
200636.13626.96819.4055.74188.250
200735.73325.67319.0044.85685.266
200836.34325.93617.4044.88584.568
200938.73226.37117.7144.83287.649
201043.84527.77519.7345.10796.461
201145.02829.77220.3005.536100.636
Source: Continuing Disclosure Document, Washington County website.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 7
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
20112002
Percentage Percentage
Taxableof Total CityTaxableof Total City
CapacityCapacityCapacityCapacity
TaxpayerValueRankValueValueRankValue
Xcel Energy$3,701,742135.50%$1,534,009129.71%
VSSA Boutwells Landing LLC543,80925.22%245,96724.76%
Wal-Mart Stores, Inc.294,78032.83% - - -
OPH Pat LLC & OPH Val LLC263,59842.53% - - -
SC Mall LLC251,25052.41%199,15933.86%
OPPGF LLC223,96062.15% - - -
Menards, Inc.205,96271.98%123,866 52.40%
Lowe's Home Centers, Inc.188,31081.81% - - -
W.A.T.E. Enterprises Inc.134,47691.29%50,2028 -
Raduenz Dealership 111,808101.07% - - -
KTJ Limited Partnership Eleven - - - 182,946 43.54%
Wal-Mart Real Estate Business - - - 94,102 61.82%
Oak Ridge Place of Oak Park - - - 74,700 71.45%
Secure Mini Storage Limited - - - 48,792 90.94%
Stillwater West LLC - - - 45,186 100.88%
Total$5,919,69556.77%$2,598,92949.36%
Total All Property $10,427,300$5,163,440
Source: Continuing Disclosure Document
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 8
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
FiscalTaxesCollected Within TheCollections
YearLeviedFiscal Year of the LevyinTotal Collections to Date
EndedFor ThePercentageSubsequentPercentage
(1)
Fiscal Year
December 31,Amountof LevyYearsAmountof Levy
2002$1,967,579$1,904,48896.79%$16,740$1,921,22897.64%
20031,993,0031,891,04694.88%23,9111,914,95796.08%
20041,965,5361,938,72698.64%24,4381,963,16499.88%
20052,208,1782,176,29098.56%28,7222,205,01299.86%
20062,395,0442,363,19298.67%31,1572,394,34999.97%
20072,781,4892,646,42195.14%(20,938)2,625,48394.39%
20083,286,2303,211,39297.72%(10,973)3,200,41997.39%
20093,574,8553,447,96596.45%86,5873,534,55298.87%
20103,662,4553,584,02797.86%45,1923,629,21999.09%
20113,870,7703,819,22098.67% - 3,819,22098.67%
(1)
The levy amount presented is after deduction for Market Value Homestead Credit.
Source: City Finance Department.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 9
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities
GeneralPercentage
FiscalObligationImprovementof TaxPer
(a)
Capita
YearBondsBondsTotalCapacity
2002$510,000$1,760,000$2,270,00043.96%529
2003375,0001,485,0001,860,00031.13%430
2004225,0001,235,0001,460,00022.65%315
200565,0001,000,0001,065,00015.39%228
2006 -875,000875,00011.69%188
2007 -750,000750,0008.85%161
20086,300,000 -6,300,00061.46%1,326
20097,360,000 -7,360,00066.31%1,549
20107,110,000 -7,110,00067.25%1,497
20116,855,000 -6,855,00065.74%1,580
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
There is no business-type activity long-term debt.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 10
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2011
Estimated
EstimatedShare of
DebtPercentageOverlapping
Governmental UnitOutstandingApplicableDebt
Debt repaid with property taxes:
Independent School District No. 834$62,980,00010.11%$6,367,278
Washington County150,225,000 3.00%4,506,750
Washington County HRA54,520,000 3.00%1,635,600
NMISD No. 9167,395,000 1.62%119,799
Metro Transit235,818,022 0.35%825,363
Subtotal - overlapping debt13,454,790
City direct debt6,855,000 100.00%6,855,000
Total direct and overlapping debt$20,309,790
Sources: Continuing Disclosure Document
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 11
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2011
Market value$669,938,700
Debt limit (3% of market value)20,098,161
Debt applicable to limit:
General obligation bonds6,855,000
Less: Amount set aside for repayment
of general obligation debt(108,685)
Total net debt applicable to limit6,746,315
Legal debt margin$13,351,846
Legal Debt Margin Calculation for Fiscal Years 2001 Through 2010
Net DebtLegalAmount of Debt
FiscalDebtApplicable toDebtApplicable to
YearLimitLimitMarginDebt Limit
2002$6,998,116$ - $6,998,1160.00%
20038,132,816 - 8,132,8160.00%
20048,957,424 - 8,957,4240.00%
20059,700,534 - 9,700,5340.00%
200610,787,142 - 10,787,1420.00%
200711,581,796 - 11,581,7960.00%
200820,207,1186,172,75314,034,36530.55%
200921,562,6027,257,88514,304,71733.66%
201020,482,2637,012,70413,469,55934.24%
201120,098,1616,746,31513,351,84633.57%
Note: In 2008, State Statutes increased the percentage used to calculate the debt limit from 2% to 3%.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 12
PLEDGED REVENUE COVERAGE
Last Ten Fiscal Years
Improvement Bonds
PropertySpecial
FiscalTaxAssessmentDebt Service
(1)(2)
CollectionsCollections
YearPrincipalInterestCoverage
2002$ -$247,618$280,000$79,3430.689
2003 -239,390275,00069,2250.695
2004 -197,940250,00060,0120.638
2005 -204,585235,00051,3870.714
2006 -156,905190,00044,5350.669
2007 -35,180125,00037,6880.216
2008 -31,221750,00010,8330.041
2009336,292 -135,000252,6130.868
2010392,805 -250,000272,0000.753
2011400,902 -255,000266,6750.768
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1)
Capital Improvement Bonds were issued during 2008 and 2009 to finance construction of City Hall. The debt service
payments, which began in 2009, are funded by property tax collections and transfers from the General Fund.
(2)
Debt service payments on Improvement Bonds of 1998 ended in 2008 when the bond was paid off. Special assessment
collections, as well as transfers from the connection charge funds, were used to make the debt service payments.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 13
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Per
Capita
FiscalUnemploymentPersonalPersonal
(1)(1)
IncomeIncome
YearPopulationRate
20024,2913.6%
20034,3294.1%
20044,6334.0%
20054,6643.4%
20064,6763.5%
Information Not Available
20074,7514.1%
20084,7085.4%
20094,6537.4%
20104,3396.3%
20114,3395.2%
Sources: Metropolitan Council (population), Continuing Disclosure Document or County Records (unemployment rate)
(1)
Information Not Available
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 14
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
20112002
EmployerProduct ServiceEmployeesEmployees
Andersen CorporationWindow Manufacturer481600
VSSA - Boutwell's Landing/McKean SquareSenior Community Housing469135
Wal-Mart Stores, Inc.Retail377225
State of Minnesota Correctional FacilityGovernment Correctional Institution349297
ISD No. 834, StillwaterPublic education185220
Menard's Inc.Retail Lumber/Hardware127100
Lowe'sRetail115 -
Xcel EnergyElectric Utility107100
Kohl'sRetail95 -
Stillwater MotorsAuto Dealership/Service Repair88105
Herberger's Department StoreRetail Store -90
Rainbow FoodsRetail/Grocery -225
Total2,3932,097
Source: Continuing Disclosure Document
CITY OF OAK PARK HEIGHTS, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Full-Time Equivalent Employees as of December 31,
Function/Program200220032004
General government:
Administration322
Finance333
Building inspections322
Public safety101010
Public works334
Total222021
Source: City Finance Department
Table 15
Full-Time Equivalent Employees as of December 31,
2005200620072008200920102011
2222222
3333333
2222222
10101010101010
4444334
21212121202021
CITY OF OAK PARK HEIGHTS, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program200220032004
Police:
Physical arrests263237308
Parking violations155145118
Traffic violations6117121,023
Fire:
Fire and related calls108122113
Medical calls174164200
Building inspection:
Permits issued:
Residential544448
Commercial751311
Total permit valuation$11,651,369$19,878,493$18,043,522
Water:
Connections1,1981,2121,259
Average daily demand (thousands of gallons)576,000645,000611,000
Sewer:
Connections1,2811,2731,235
Sources: Various City departments.
Table 16
Fiscal Year
2005200620072008200920102011
251240207224208176151
12312492135170171155
1,0897386131,0169691,240874
11511910698912224
251302270292293537530
211194 - 1 -
131582213
$12,732,475$36,975,066$6,521,063$18,707,532$7,254,000$10,955,024$1,828,000
1,2771,2891,3041,3151,3181,3171,321
614,000676,000681,452654,172681,816576,085593,496
1,2511,2641,2741,2831,2851,2681,278
CITY OF OAK PARK HEIGHTS, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Nine Fiscal Years
Fiscal Year
Function/Program200320042005
Police:
Stations111
Squad cars776
Fire stations
Other public works:
Miles of paved streets22.022.022.0
Streetlights330392392
Traffic signals222
Parks and recreation:
Parkland acreage105105105
Number of parks444
Water:
Water mains (miles)26.626.626.6
Fire hydrants316316316
Storage capacity (thousands of gallons)750750750
Wastewater:
Sanitary sewers (miles)21.923.323.3
Storm sewers (miles)12.512.512.5
Sources: Various City departments.
Table 17
Fiscal Year
200620072008200920102011
111111
666666
22.022.022.022.022.022.0
392396396396396396
222222
105104108104104104
555555
26.626.826.827.127.127.1
316316316216216216
750750750750750750
23.324.924.924.924.924.9
12.512.612.612.612.612.6
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