HomeMy WebLinkAbout2010 Annual Financial Report
CITY OF OAK PARK HEIGHTS, MINNESOTA
ANNUAL FINANCIAL REPORT
December 31, 2010
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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 1062
Schedule of Funding Progress - Retiree Health Plan67
Budgetary Comparison Schedule - Note to RSI68
Combining and Individual Fund Financial Statements:
Combining Balance Sheet - Nonmajor Governmental FundsStatement 1172
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental FundsStatement 1273
CITY OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
ReferenceNo.
Subcombining Balance Sheet - Nonmajor Special Revenue FundsStatement 1374
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue FundsStatement 1475
Subcombining Balance Sheet - Nonmajor Debt Service FundsStatement 1576
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service FundsStatement 1677
Subcombining Balance Sheet - Nonmajor Capital Project FundsStatement 1778
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project FundsStatement 1880
Agency Funds:
Subcombining Balance SheetStatement 1982
Subcombining Statement of Changes in Assets and LiabilitiesStatement 2083
STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Assets by Component - Last Seven Fiscal YearsTable 186
Changes in Net Assets - Last Seven Fiscal YearsTable 288
Fund Balances, Governmental Funds - Last Seven Fiscal YearsTable 392
Changes in Fund Balances, Governmental Funds - Last Seven Fiscal YearsTable 494
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of Taxable PropertyTable 596
Direct and Overlapping Property Tax Capacity RatesTable 697
Principal Property TaxpayersTable 798
Property Tax Levies and CollectionsTable 899
Debt Capacity:
Ratios of Outstanding Debt by TypeTable 9100
Direct and Overlapping Governmental Activities DebtTable 10101
Legal Debt Margin InformationTable 11102
Pledged Revenue CoverageTable 12103
Demographic and Economic:
Demographic and Economic StatisticsTable 13104
Principal EmployersTable 14105
Operating Information:
Full-Time Equivalent City Government Employees By Function/ProgramTable 15106
Operating Indicators by Function/ProgramTable 16108
Capital Asset Statistics by Function/ProgramTable 17110
INTRODUCTORY SECTION
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CITY OF OAK PARK HEIGHTS, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
December 31, 2010
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
Deputy Clerk/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, 2010.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$33,982,896 (Net assets). Of this amount, $14,862,538 (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 $960,064.
As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $14,348,532, a decrease of $1,810,693. The decrease is mainly due
to expenditures for construction of the new city hall.
At the end of the current fiscal year the general fund balance was $2,973,797 of which
$2,419,000 is designated.
The General Fund balance increased by $253,785 as a result of positive budget variances in
revenue and expenditures.
The City transferred $206,850from 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
$122,000 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 six 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
Moelter Park – 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 $33,982,896 at the
close of the most recent fiscal year.
The largest portion of the City’s net assets ($18,272,496 or 53.7% 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
201020092010200920102009
Assets:
Current and other assets$15,516,265$17,683,418$1,257,019$1,242,248$16,773,284$18,925,666
Capital assets18,629,52816,058,9116,752,9686,925,82525,382,49622,984,736
Total assets$34,145,793$33,742,329$8,009,987$8,168,073$42,155,780$41,910,402
Liabilities:
Long-term liabilities outstanding$7,063,434$7,300,223$29,126$26,518$7,092,560$7,326,741
Other liabilities1,019,2841,501,30761,04059,5221,080,3241,560,829
Total liabilities$8,082,718$8,801,530$90,166$86,040$8,172,884$8,887,570
Net assets:
Invested in capital assets, net of related debt$11,519,528$8,698,911$6,752,968$6,925,825$18,272,496$18,834,596
Restricted847,8624,076,963 - - 847,862867,103
Unrestricted13,695,68512,164,9251,166,8531,156,20814,862,53813,321,133
Total net assets$26,063,075$24,940,799$7,919,821$8,082,033$33,982,896$33,022,832
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 $1,122,276 during 2010. Key
elements of this increase are as follows:
City of Oak Park Heights’ Changes in Net Assets
Governmental ActivitiesBusiness-Type ActivitiesTotals
201020092010200920102009
Revenues:
Program revenues:
Charges for services$950,513$394,910$1,390,935$1,272,101$2,341,448$1,667,011
Operating grants and contributions145,04888,187 - - 145,04888,187
Capital grants and contributions76,970688,975 - - 76,970688,975
General revenues:
General property taxes3,692,1273,537,829 - - 3,692,1273,537,829
Grants and contributions not
restricted to specific programs104,987180,430 - - 104,987180,430
Gain on sale of capital assets - 12,165 - - - 12,165
Other revenue16,58814,186 - - 16,58814,186
Unrestricted investment earnings320,183456,93422,93426,174343,117483,108
Total revenues5,306,4165,373,6161,413,8691,298,2756,720,2856,671,891
Expenses:
General government1,575,2971,356,038 - - 1,575,2971,356,038
Public safety1,407,1611,364,734 - - 1,407,1611,364,734
Public works980,630957,308 - - 980,630957,308
Parks and recreation201,716211,795 - - 201,716211,795
Interest on long-term debt280,548262,586 - - 280,548262,586
Water - - 466,218434,577466,218434,577
Sanitary sewer - - 740,184680,468740,184680,468
Storm sewer - - 108,46743,337108,46743,337
Total expenses 4,445,3524,152,4611,314,8691,158,3825,760,2215,310,843
Increase in net assets before transfers861,0641,221,15599,000139,893960,0641,361,048
Transfers261,212(549,139)(261,212)549,139 - -
Change in net assets1,122,276672,016(162,212)689,032960,0641,361,048
Net assets - January 124,940,79924,268,7838,082,0337,393,00133,022,83231,661,784
Net assets - December 31$26,063,075$24,940,799$7,919,821$8,082,033$33,982,896$33,022,832
Management’s Discussion and Analysis
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenditures:
Governmental Activities -Revenues
Unrestricted investment
Grants and contributions not
earnings
Charges for services
restricted to specific programs
6%
Operating grants and
2%
18%
contributions
3%
Capital grants and
contributions
1%
General property taxes
70%
Governmental Activities -Expenses
Interest on long-term debt
6%
Parks and recreation
General government
5%
35%
Public works
22%
Public safety
32%
Management’s Discussion and Analysis
Business-Type Activities
Business-type activities decreased net assets by $162,212 during 2010. Below are graphs
showing the business-type activities revenue and expense comparisons:
Business-Type Activities -Revenues
Unrestricted investment
earnings
2%
Charges for services
98%
Business-Type Activities -Expenses
Storm sewer
8%
Water
36%
Sanitary sewer
56%
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 $14,348,532.
The General Fund increased by $253,785 in 2010. Revenues were over budget by $276,606
due to an increase in grant revenues received and in permit and development charges
collected due to a large residential development. Expenditures were under budget by
$170,386 due to reduced spending in almost every City department.
The Budgeted Projects and Equipment Revolving increased by $56,179 due to transfers in
from other funds exceeding current year expenditures.
The Moelter Park Capital Project Fund was created in 2009 and increased by $14,226 due to
investment income.
The Street Reconstruction Capital Project Fund increased by $355,240 during 2010 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 $3,303,062 in 2010.
The Renewal and Replacement Capital Project Fund increased by $278,477 during 2010.
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 $12,266 during 2010.
The nonmajor debt service funds decreased by $4,819 during 2010.
The nonmajor capital project funds increased by $551,547 during 2010.
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 2010.
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, 2010, amounts to $25,382,496 (net of accumulated
depreciation). This investment in capital assets includes land, buildings and structures,
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 progress4,356,7733,242,312(7,516,034)83,051
Total capital assets, not being depreciated6,595,7033,242,312(7,516,034)2,321,981
Capital assets, being depreciated:
Buildings and structures1,584,0316,841,817(915,156)7,510,692
Other improvements886,154531,809(15,799)1,402,164
Machinery and equipment531,916 - (19,995)511,921
Furniture and fixtures342,69745,683(94,142)294,238
Infrastructure12,643,088168,858 - 12,811,946
Total capital assets, being depreciated15,987,8867,588,167(1,045,092)22,530,961
Less accumulated depreciation for:
Buildings and structures867,229210,288(915,156)162,361
Other improvements174,18512,224(10,996)175,413
Machinery and equipment281,56069,121(19,995)330,686
Furniture and fixtures170,96626,642(88,074)109,534
Infrastructure5,030,738414,682 - 5,445,420
Total accumulated depreciation6,524,678732,957(1,034,221)6,223,414
Total capital assets being depreciated - net9,463,2086,855,210(10,871)16,307,547
Governmental activities capital assets - net$16,058,911$10,097,522($7,526,905)$18,629,528
Management’s Discussion and Analysis
BeginningEnding
BalanceIncreasesDecreasesBalance
Business-type activities:
Capital assets, not being depreciated:
Land$921,283$16,636$ - $937,919
Total capital assets, not being depreciated921,28316,6360937,919
Capital assets, being depreciated:
Buildings and structures1,814,878 - (199,464)1,615,414
Machinery and equipment282,400125,661(533)407,528
Distribution and collection systems7,334,849 - (23,420)7,311,429
Total capital assets, being depreciated9,432,127125,661(223,417)9,334,371
Less accumulated depreciation:
Buildings and structures657,29456,957(113,336)600,915
Machinery and equipment161,04514,606(533)175,118
Distribution and collection systems2,609,246147,818(13,775)2,743,289
Less accumulated depreciation3,427,585219,381(127,644)3,519,322
Total capital assets being depreciated - net6,004,542(93,720)(95,773)5,815,049
Business-type activities capital assets - net$6,925,825($77,084)($95,773)$6,752,968
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 $7,110,000, a decrease of $250,000 from 2009.
Additional long-term debt in the amount of $250,704 for compensated absences was also
outstanding at the end of 2010.
City of Oak Park Heights’ Outstanding Debt
General obligation improvement bonds and compensated absences:
Governmental ActivitiesBusiness-Type ActivitiesTotals
201020092010200920102009
General Obligation Bonds$7,110,000$7,360,000$ - $ - $7,110,000$7,360,000
Compensated absences219,967239,43530,73727,250250,704266,685
Total$7,329,967$7,599,435$30,737$27,250$7,360,704$7,626,685
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 $20,482,263. The
Management’s Discussion and Analysis
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, 2010
Primary Government
GovernmentalBusiness-TypeTotals
Assets:ActivitiesActivities20102009
Cash and investments$14,732,532$836,650$15,569,182$17,758,360
Accrued interest 142,30310,193152,496285,198
Accounts receivable - net20,317375,471395,788336,014
Due from other governmental units84,22676584,99145,460
Prepaid items - 33,94033,94081,609
Taxes receivable:
Delinquent132,814 - 132,814138,496
Due from County33,854 - 33,85447,451
Special assessments receivable74,038 - 74,03896,645
Land held for resale168,518 - 168,518 -
Unamortized bond issuance costs127,663 - 127,663136,433
Capital assets (net of accumulated depreciation):
Land2,238,930937,9193,176,8493,160,213
Building and structures7,348,3311,014,4998,362,8301,874,386
Other improvements1,226,751 - 1,226,751711,969
Machinery and equipment181,235232,410413,645371,711
Furniture and fixtures184,704 - 184,704171,731
Infrastructure7,366,5264,568,14011,934,66612,337,953
Construction in progress83,051 - 83,0514,356,773
Total assets34,145,7938,009,98742,155,78041,910,402
Liabilities:
Accounts payable277,45342,185319,638325,854
Salaries payable5,5742,3387,9128,549
Contracts payable318,084 - 318,084814,452
Due to other governmental units2,4976,2108,7077,291
Due to developers61,092 - 61,09250,000
Accrued interest payable11,111 - 11,11111,333
Compensated absences payable:
Due within one year11,5331,61113,14449,944
Due in more than one year208,43429,126237,560216,741
Other post employment benefits76,9408,69685,63643,406
Bonds payable:
Due within one year255,000 - 255,000250,000
Due in more than one year6,855,000 - 6,855,0007,110,000
Total liabilities8,082,71890,1668,172,8848,887,570
Net assets:
Invested in capital assets, net of related debt11,519,5286,752,96818,272,49618,834,596
Restricted for:
Debt service235,862 - 235,862255,103
Park improvements612,000 - 612,000612,000
Unrestricted13,695,6851,166,85314,862,53813,321,133
Total net assets$26,063,075$7,919,821$33,982,896$33,022,832
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, 2010
Charges For
Functions/ProgramsExpensesServices
Primary government:
Governmental activities:
General government$1,575,297$161,070
Public safety1,407,161371,838
Public works980,630176,165
Parks and recreation201,716241,440
Interest on long-term debt280,548 -
Total governmental activities4,445,352950,513
Business-type activities:
Water466,218565,859
Sanitary sewer740,184749,378
Storm sewer108,46775,698
Total business-type activities1,314,8691,390,935
Total primary government$5,760,221$2,341,448
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
ContributionsContributionsActivitiesActivities20102009
$42,335$ - ($1,371,892)$ - ($1,371,892)($1,271,971)
77,943 -(957,380) -(957,380)(1,000,388)
24,77042,270(737,425) -(737,425)(845,649)
-34,70074,424 -74,424400,205
- -(280,548) -(280,548)(262,586)
145,04876,970(3,272,821)0(3,272,821)(2,980,389)
- - -99,64199,641112,029
- - -9,1949,194(29,446)
- - -(32,769)(32,769)31,136
00076,06676,066113,719
$145,048$76,970(3,272,821)76,066(3,196,755)(2,866,670)
General revenues:
General property taxes3,692,127 - 3,692,1273,537,829
Grants and contributions not
restricted to specific programs104,987 -104,987180,430
Unrestricted investment earnings320,18322,934343,117483,108
Gain on sale of capital assets - - -12,165
Other16,588 -16,58814,186
Transfers261,212(261,212) - -
Total general revenues
and transfers4,395,097(238,278)4,156,8194,227,718
Change in net assets1,122,276(162,212)960,0641,361,048
Net assets - January 124,940,7998,082,03333,022,83231,661,784
Net assets - December 31$26,063,075$7,919,821$33,982,896$33,022,832
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2010
401 Budgeted
Projects and
Equipment
General FundRevolving
Assets
Cash and investments$3,006,856$1,084,008
Accrued interest receivable22,52010,018
Accounts receivable - net20,317 -
Due from other governmental units84,226 -
Prepaid items - -
Taxes receivable:
Delinquent121,911 -
Due from county30,581 -
Special assessments receivable - -
Land held for resale - -
Total assets$3,286,411$1,094,026
Liabilities and Fund Balances
Liabilities:
Accounts payable$171,565$105,888
Salaries payable5,574 -
Contracts payable - -
Due to other governmental units2,47225
Due to developers11,092 -
Deferred revenue121,911 -
Total liabilities312,614105,913
Fund balance:
Reserved - -
Unreserved:
Designated reported in General Fund2,419,000 -
Designated reported in Special Revenue Funds - -
Designated reported in Capital Project Funds -988,113
Undesignated reported in General Fund554,797 -
Total fund balance2,973,797988,113
Total liabilities and fund balance$3,286,411$1,094,026
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.
Statement 3
710 Renewal
and
ReplacementOther
407 Moelter 565 Street 572 City Hall Capital Project Governmental
ParkReconstructionImprovementsFundFundsTotal Governmental Funds
20102009
$620,799$1,764,479$493,507$4,082,813$3,680,070$14,732,532$16,896,149
6,32315,72314,44539,70733,567142,303269,624
- - - - - 20,3177,509
- - - - - 84,22642,011
- - - - - - 49,100
- - - - 10,903132,814138,496
- - - - 3,27333,85447,451
- - - - 74,03874,03896,645
- - - - 168,518168,518 -
$627,122$1,780,202$507,952$4,122,520$3,970,369$15,388,602$17,546,985
$ - $ - $ - $ - $ - $277,453$281,217
- - - - - 5,5747,236
- - 318,084 - - 318,084814,452
- - - - - 2,497334
- - - - 50,00061,09250,000
- - - - 253,459375,370234,521
00318,0840303,4591,040,0701,387,760
- - - - 97,29697,296102,115
- - - - - 2,419,0002,496,635
- - - - 88,47188,471100,737
627,1221,780,202189,8684,122,5203,481,14311,188,96813,236,361
- - - - - 554,797223,377
627,1221,780,202189,8684,122,5203,666,91014,348,53216,159,225
$627,122$1,780,202$507,952$4,122,520$3,970,369$15,388,602$17,546,985
$14,348,532$16,159,225
18,629,52816,058,911
503,033370,954
(7,110,000)(7,360,000)
(219,967)(239,435)
(76,940)(37,523)
(11,111)(11,333)
$26,063,075$24,940,799
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, 2010
401 Budgeted
Projects and
Equipment407 Moelter
General FundRevolvingPark
Revenues:
General property taxes$3,305,004$ - $ -
Special assessments - - -
Licenses and permits197,181 - -
Intergovernmental279,411 - -
Charges for services143,806 - -
Fines and forfeits58,365 - -
Investment income50,67522,54014,226
Refunds and reimbursements124,705917 -
Donations and contributions -2,184 -
Total revenues4,159,14725,64114,226
Expenditures:
Current:
General government1,239,05914,750 -
Public safety1,307,7831,939 -
Public works487,607100,328 -
Parks and recreation108,02917,385 -
Capital outlay36,459122,510 -
Debt service:
Principal retirement - - -
Interest and other - - -
Bond issuance costs - - -
Construction costs - - -
Total expenditures3,178,937 256,912 0
Revenues over (under) expenditures980,210 (231,271)14,226
Other financing sources (uses):
Sale of capital assets425 - -
Bonds issued - - -
Transfers in - 287,450 -
Transfers out(726,850) - -
Total other financing sources (uses)(726,425)287,450 0
Net change in fund balance253,78556,17914,226
Fund balance - January 12,720,012931,934612,896
Fund balance - December 31$2,973,797$988,113$627,122
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
20102009
$ - $ - $ - $392,805$ - $3,697,809$3,470,670
- - - 28,583 - 28,58343,810
- - - - - 197,181100,074
-3,140 - - - 282,551276,772
- - - 417,605 - 561,411107,392
- - - 15,396 - 73,76174,588
35,37732,50289,34175,522 - 320,183456,934
-8,170 - 531 - 134,323137,422
- - - - - 2,184612,525
35,377 43,812 89,341 930,442 0 5,297,986 5,280,187
- 107,331 - 9,241 - 1,370,3811,117,822
- - - 2,613 - 1,312,3351,277,600
137 - - 4,825 - 592,897586,872
- - - - - 125,414139,188
- 45,683 - 185,154 - 389,8061,053,745
- - - 250,000 - 250,000135,000
- - - 272,000 - 272,000255,213
- - - - - - 33,537
- 3,193,860 - - - 3,193,8603,903,908
137 3,346,874 0 723,833 0 7,506,693 8,502,885
35,240 (3,303,062)89,341 206,609 0 (2,208,707)(3,222,698)
- - - - - 42512,200
- - - - - - 1,195,000
320,000 - 189,136477,853(876,850)397,589351,247
- - - (150,000)876,850 - -
320,000 0 189,136 327,853 0 398,014 1,558,447
355,240 (3,303,062)278,477 534,462 0 (1,810,693)(1,664,251)
1,424,9623,492,9303,844,0433,132,448 - 16,159,22517,823,476
$1,780,202$189,868$4,122,520$3,666,910$0$14,348,532$16,159,225
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, 2010
20102009
Amounts reported for governmental activities in the
statement of activities are different because:
Net changes in fund balances - total governmental funds (Statement 4)($1,810,693)($1,664,251)
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(732,957)(724,967)
Capital outlay3,583,6664,957,653
Other various transactions relating to capital assets:
Capital contributions to business-type activities(136,377)(900,386)
Transfer of asset from business-type activities35,674 -
Received donation of land -50,000
Loss on disposal of capital asset(10,871)(36)
Other -248
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(5,682)67,159
Change in deferred and delinquent special assessments(21,987)(35,895)
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 payable250,000135,000
Bonds issued - (1,195,000)
Bond issuance costs -33,537
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)(5,416)
Change in compensated absences payable19,468(6,150)
Change in other post employment benefits(39,417)(37,523)
Change in accrued interest payable222(1,957)
Change in net assets of governmental activities (Statement 2)$1,122,276$672,016
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, 2010
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility
Utility FundUtility FundFund
Totals
20102009
Assets:
Current assets:
Cash and cash equivalents$336,333$339,939$160,378$836,650$862,211
Accrued interest receivable4,0914,2191,88310,19315,574
Accounts receivable:
Customers124,625182,80320,824328,252285,278
Certified to County12,59727,6736,94947,21943,227
Due from other governmental units261412927653,449
Prepaid items - 33,940 - 33,94032,509
Total current assets477,907 588,986 190,126 1,257,019 1,242,248
Noncurrent assets:
Capital assets:
Land937,919 - - 937,919921,283
Buildings and structures1,571,43143,983 - 1,615,4141,814,878
Machinery and equipment399,7557,773 - 407,528282,400
Distribution and collection system3,308,9444,002,485 - 7,311,4297,334,849
Total capital assets6,218,049 4,054,241 0 10,272,290 10,353,410
Less: Allowance for depreciation(1,981,773)(1,537,549) - (3,519,322)(3,427,585)
Net capital assets4,236,2762,516,69206,752,9686,925,825
Total noncurrent assets4,236,2762,516,69206,752,9686,925,825
Total assets4,714,1833,105,678190,1268,009,9878,168,073
Liabilities:
Current liabilities:
Accounts payable10,00831,19098742,18544,637
Salaries payable1,493845 - 2,3381,313
Due to other governmental units4,1312,079 - 6,2106,957
Compensated absences payable - current portion938582911,611732
Total current liabilities16,570 34,696 1,078 52,344 53,639
Noncurrent liabilities:
Compensated absences payable - noncurrent portio
n16,95110,5241,65129,12626,518
Other post employment benefits4,8473,1976528,6965,883
Noncurrent liabilities21,79813,7212,30337,82232,401
Total liabilities38,36848,4173,38190,16686,040
Net assets:
Invested in capital assets4,236,2762,516,692 - 6,752,9686,925,825
Unrestricted439,539540,569186,7451,166,8531,156,208
Total net assets$4,675,815$3,057,261$186,745$7,919,821$8,082,033
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, 2010
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility
Utility FundUtility FundFund
Totals
20102009
Operating revenues:
Customer billings$553,459$737,920$74,430$1,365,809$1,254,394
Penalties5,5399,7881,12816,45515,183
Meter sales5,022 - - 5,0221,121
Charges for services1,1821,6701402,992805
Refunds and reimbursements657 - - 657598
Total operating revenues565,859 749,378 75,698 1,390,935 1,272,101
Operating expenses:
Personal services166,364108,60018,986293,950315,583
Contractual services78,75465,40849,042193,204173,383
MCES charges - 390,106 - 390,106366,192
Materials and supplies12,8506,61689520,36120,952
Administrative and personnel charges21,20041,3503,87066,42064,400
Depreciation134,34185,040 - 219,381217,872
Total operating expenses413,509 697,120 72,793 1,183,422 1,158,382
Operating income152,350 52,258 2,905 207,513 113,719
Nonoperating revenues (expenses):
Earnings on investments9,2059,4934,23622,93426,174
Other - - (35,674)(35,674) -
(Loss) on disposal of capital assets(52,709)(43,064) - (95,773) -
Total nonoperating revenues (expenses)(43,504)(33,571)(31,438)(108,513)26,174
Income (loss) before contributions and transfers108,84618,687(28,533)99,000139,893
Capital contributions136,377 - - 136,377900,386
Transfers:
Transfers to other funds(255,962)(133,327)(8,300)(397,589)(351,247)
Total transfers and contributions(119,585)(133,327)(8,300)(261,212)549,139
Change in net assets(10,739)(114,640)(36,833)(162,212)689,032
Net assets - January 14,686,5543,171,901223,5788,082,0337,393,001
Net assets - December 31$4,675,815$3,057,261$186,745$7,919,821$8,082,033
CapitalTransfers
ContributionsNet
Amounts reported above$136,377($397,589)
Amounts reported for business-type activities in the statement of activities are different because:
Transfer in of capital assets from governmental activities(136,377)136,377
Amounts reported on the statement of activities$0($261,212)
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, 2010
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility
Utility FundUtility FundFund
Totals
20102009
Cash flows from operating activities:
Receipts from customers and users$553,569$719,679$73,405$1,346,653$1,224,855
Payment to suppliers(114,846)(504,028)(55,847)(674,721)(591,565)
Payment to employees(161,978)(106,087)(18,560)(286,625)(305,951)
Net cash flows provided by (used in) operating activities276,745109,564(1,002)385,307327,339
Cash flows from noncapital financing activities:
Transfer to other funds(255,962)(133,327)27,374(361,915)(351,247)
Cash flows from capital and related
financing activities:
Acquisition of capital assets(5,664)(256)(35,674)(41,594)(15,515)
Cash flows from investing activities:
Investment income10,96511,9145,43628,31533,404
Net increase (decrease) in cash and cash equivalents26,084(12,105)(3,866)10,113(6,019)
Cash and cash equivalents - January 1310,249352,044199,918862,211868,230
Cash and cash equivalents - December 31$336,333 $339,939 $196,052 $872,324 $862,211
Reconciliation of operating income to net
cash provided by operating activities:
Operating income$152,350$52,258$2,905$207,513$113,719
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities:
Depreciation134,34185,040 - 219,381217,872
Changes in assets and liabilities:
Decrease (increase) in receivables(12,290)(29,699)(2,293)(44,282)(47,246)
Decrease (increase) in prepaid expenses - (1,431) - (1,431)(1,993)
Increase (decrease) in payables2,3443,396(1,614)4,12644,987
Total adjustments124,395 57,306 (3,907)177,794 213,620
Net cash provided by (used in) operating activities$276,745$109,564($1,002)$385,307$327,339
Noncash investing, capital and financing activities:
Contribution of capital assets$136,377$0$0$136,377$900,386
Transfer of capital assets to governmental activities$0$0($35,674)($35,674)$0
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, 2010
20102009
Assets:
Cash and investments$185,338$172,408
Due from developers15,7356,859
Total assets201,073179,267
Liabilities:
Escrow deposits payable$96,500$101,500
Accounts payable6,5513,635
Due to developers98,02274,132
Total liabilities201,073179,267
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, 2010
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 UNITS
The HRA of the City of Oak Park Heights, Minnesota is a separate legal entity which is authorized to
expend monies generated by the City's tax increment district. The City council also serves as HRA
board members. Separate financial statements are not prepared for the HRA.
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
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.
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.
TheMoelter Park Capital Project Fund is used to account for funds received for improvements and/or
continued maintenance of park amenities on or adjacent to the Moelter site, including trails, park
shelters, parking lots and other related park amenities, as stated in City resolution number 09-12-49.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
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.
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
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
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.
When both restricted and unrestricted resources are available for an allowable use, it is the City’s policy
to use restricted resources first, then unrestricted resources as they are needed.
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
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
general obligation bond indenture provisions and net income for operation and capital
maintenance and are not reflected in the financial statements.
7. A capital improvement program is reviewed annually by the City Council for the Capital
Project Funds. However, appropriations for major projects are not adopted until the actual bid
award of the improvement. The appropriations are not reflected in the financial statements.
8. Expenditures may not legally exceed budgeted appropriations at the total fund level.
Monitoring of budgets is maintained at the expenditure category level (i.e., personal services;
material and supplies; contractual services; capital outlay) within each department. All
amounts over budget have been approved by the City council through the disbursement
approval process.
9. The City Council may authorize transfer of budgeted amounts between City funds.
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
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.
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
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.
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, 2010, 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 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, 2010
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 premiums and
discounts, as well as issuance costs, 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 EQUITY
In the fund financial statements, governmental funds report reservations of fund balance for amounts
not appropriable for expenditure or legally segregated for a specific future use. Designated fund
balances represent tentative plans for future use of financial resources.
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
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.
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, 2010 the carrying amount of the City’s deposits with financial institutions was
$10,292,479.
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, 2010, the bank balance of the City’s deposits was
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
$10,442,283. Of this amount, $9,863,662 was insured by the Federal Deposit Insurance Corporation
(FDIC) or covered by perfected pledged collateral held in the City’s name. The remaining $578,621 of
deposits were covered by pledged collateral, but the collateral pledged was not an allowable form of
collateral as stated in Minnesota Statute 118A.03, subdivision 2.
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, 2010
As of December 31, 2010 the City had the following investments and maturities:
Investment Maturities (in Years)
FairLess
Investment TypeRatingValueThan 11-56-10
Federal National Mortgage Assn. NotesAaa$551,840$ - $ - $551,840
Federal Home Loan Mortgage Corp. NotesAaa1,098,249 - 598,249500,000
Brokered certificates of depositNR2,779,608975,6081,708,00096,000
External investment pool - 4M FundNR1,032,2441,032,244 - -
Total$5,461,941$2,007,852$2,306,249$1,147,840
NR - Not RatedTotal investments$5,461,941
Deposits10,292,479
Petty cash100
Total cash and investments$15,754,520
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, 2010:
Government-wide statement of net assets:
Cash and investments$15,569,182
Fiduciary funds statement of net assets185,338
Total cash and investments$15,754,520
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
C. INVESTMENT RISKS
– For investments in securities, custodial credit risk is the risk that in
Custodial credit risk – investments
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
$1,095,608 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 is the risk that changes in interest rates of debt investments could
Interest rate risk
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 is the risk that an issuer or other counterparty to an investment will be unable
Credit Risk
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, 2010
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2010 are as
follows:
Other
Governmental
GeneralFundsTotal
Delinquent property taxes$55,738$4,985$60,723
Deferred special assessments - 55,52955,529
Total$55,738$60,514$116,252
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)$121,911$ -
Delinquent property taxes receivable (Nonmajor Fund)10,903 -
Special assessments receivable (Nonmajor Fund)74,038 -
Land held for resale (Nonmajor Fund)168,518 -
Total deferred/unearned revenue for governmental funds$375,370$0
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 4 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2010 was as follows:
BeginningEnding
BalanceIncreasesDecreasesBalance
Governmental activities:
Capital assets, not being depreciated:
Land$2,238,930$ - $ - $2,238,930
Construction in progress4,356,7733,242,312(7,516,034)83,051
Total capital assets, not being depreciated6,595,7033,242,312(7,516,034)2,321,981
Capital assets, being depreciated:
Buildings and structures1,584,0316,841,817(915,156)7,510,692
Other improvements886,154531,809(15,799)1,402,164
Machinery and equipment531,916 - (19,995)511,921
Furniture and fixtures342,69745,683(94,142)294,238
Infrastructure12,643,088168,858 - 12,811,946
Total capital assets, being depreciated15,987,8867,588,167(1,045,092)22,530,961
Less accumulated depreciation for:
Buildings and structures867,229210,288(915,156)162,361
Other improvements174,18512,224(10,996)175,413
Machinery and equipment281,56069,121(19,995)330,686
Furniture and fixtures170,96626,642(88,074)109,534
Infrastructure5,030,738414,682 - 5,445,420
Total accumulated depreciation6,524,678732,957(1,034,221)6,223,414
Total capital assets being depreciated - net9,463,2086,855,210(10,871)16,307,547
Governmental activities capital assets - net$16,058,911$10,097,522($7,526,905)$18,629,528
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
BeginningEnding
BalanceIncreasesDecreasesBalance
Business-type activities:
Capital assets, not being depreciated:
Land$921,283$16,636$ - $937,919
Total capital assets, not being depreciated921,28316,6360937,919
Capital assets, being depreciated:
Buildings and structures1,814,878 - (199,464)1,615,414
Machinery and equipment282,400125,661(533)407,528
Distribution and collection systems7,334,849 - (23,420)7,311,429
Total capital assets, being depreciated9,432,127125,661(223,417)9,334,371
Less accumulated depreciation:
Buildings and structures657,29456,957(113,336)600,915
Machinery and equipment161,04514,606(533)175,118
Distribution and collection systems2,609,246147,818(13,775)2,743,289
Less accumulated depreciation3,427,585219,381(127,644)3,519,322
Total capital assets being depreciated - net6,004,542(93,720)(95,773)5,815,049
Business-type activities capital assets - net$6,925,825($77,084)($95,773)$6,752,968
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government$221,060
Public safety49,433
Public works387,122
Recreation75,342
Total depreciation expense - governmental activities$732,957
Business-type activities:
Water$134,341
Sewer85,040
Total depreciation expense - business-type activities$219,381
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
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, 2010, the long-term debt of the financial reporting entity consisted of the following:
FinalAuthorized
Issue Maturity Interest AndOutstanding
DateDateRateIssued12/31/10
Governmental activities:
Improvement bonds:
G.O. Capital Improvement Bonds, Series 2008A06/15/0812/15/282.5 - 4.4$6,300,000$6,015,000
G.O. Capital Improvement Bonds, Series 2009A09/15/0912/15/191.2 - 3.551,195,0001,095,000
Compensated absences payable219,967
Total governmental activities7,329,967
Business-type activities:
Compensated absences payable30,737
Total City indebtedness$7,360,704
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
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
2011$155,000$237,525$100,000$29,150$255,000$266,675
2012170,000233,030105,00027,650275,000260,680
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$6,015,000$2,869,227$1,095,000$174,180$7,110,000$3,043,407
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, 2010
Change in Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2010, was as follows:
FinalAuthorized
Issue Maturity Interest AndOutstanding
DateDateRateIssued12/31/10
Governmental activities:
Improvement bonds:
G.O. Capital Improvement Bonds, Series 2008A06/15/0812/15/282.5 - 4.4$6,300,000$6,015,000
G.O. Capital Improvement Bonds, Series 2009A09/15/0912/15/191.2 - 3.551,195,0001,095,000
Compensated absences payable219,967
Total governmental activities7,329,967
Business-type activities:
Compensated absences payable30,737
Total City indebtedness$7,360,704
For governmental activities, compensated absences are generally liquidated by the General Fund. All long-
term bonded indebtedness outstanding at December 31, 2010 is backed by the full faith and credit of the
City, including improvement bond issues. Delinquent taxes receivable at December 31, 2010 were
$132,814.
Revenues Pledged
Revenue PledgedCurrent Year
Percent ofRemainingPrincipalPledged
Use ofTotalTerm ofPrincipaland InterestRevenue
Bond IssueProceedsTypeDebt ServicePledgeand InterestPaidReceived
2008ACity hall constructionProperty taxes100%2009 - 2028$8,884,227$391,650$392,805
2009ACity hall constructionProperty taxes100%2010 - 2019$1,269,180$130,350$122,000
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, 2010
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 6.0%, respectively, of their annual
covered salary in 2010. PEPFF members were required to contribute 9.4% of their annual covered
salary in 2010. The City was required to contribute the following percentages of annual covered
payroll in 2010: 11.78% for Basic Plan GERF members, 7.0% for Coordinated Plan GERF members,
and 14.1% for PEPFF members. Employer contribution rates for the Coordinated Plan will increase to
7.25% and rates for the PEPFF will increase to 14.4% effective January 1, 2011 The City’s
contributions to the General Employees Retirement Fund for the years ending December 31, 2010, 2009
and 2008 were $50,534, $47,320 and $45,539, respectively. The City’s contributions to the Public
Employees Police and Fire Fund for the years ending December 31, 2010, 2009 and 2008 were
$99,847, $94,756 and $91,155, 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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
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, 2010.
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
C. PARTICIPANTS
As of the actuarial valuation dated February 2009, participants consisted of:
Retirees and beneficiaries currently
purchasing health insurance through the City3
Active employees21
Total24
Participating employers1
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, 2010, was calculated as follows:
Annual required contribution (ARC)$60,075
Interest on net OPEB obligation1,736
Adjustment to ARC(2,510)
Annual OPEB cost59,301
Contributions made during the year(17,071)
Increase in net OPEB obligation42,230
Net OPEB obligation - beginning of year43,406
Net OPEB obligation - end of year$85,636
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
The net OPEB obligation is allocated as follows:
Governmental activities$76,940
Business-type activities8,696
$85,636
For governmental activities, the net OPEB obligation is generally liquidated by the General Fund.
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net
OPEB obligation for 2009 and 2010 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
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 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.
Note, the first OPEB actuarial valuation was conducted as of January 1, 2009. There is no data available prior to the first
valuation.
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
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
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.
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, 2010, was 28
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$320,000$ - $206,850$200,000$726,850
Nonmajor Governmental Funds - - - 150,000150,000
Business-type activities:
Water Utility Fund - 91,95936,150127,853255,962
Sewer Utility Fund - 97,17736,150 - 133,327
Storm Sewer Utility Fund - - 8,300 - 8,300
Total transfers$320,000$189,136$287,450$477,853$1,274,439
During 2010, the City made routine interfund transfers to accumulate resources to be used for improvements.
Also, the Storm Sewer Utility Fund made an additional transfer of capital assets to governmental activities in the
amount of $35,674 which is not reflected in the schedule above.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
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, 2010.
C.COMMITTED CONTRACTS
At December 31, 2010, the City had commitments of $31,522 for uncompleted construction contracts
relating to the new City hall.
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
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.
Note 11 DESIGNATIONS AND RESERVATIONS OF FUND BALANCES
At December 31, 2010 the City had designated and reserved portions of its various fund balances through legal
restriction and City Council authorization. Major fund balance appropriations at December 31, 2010 are shown
on the various balance sheets as segregations of the fund balance. A summary of such reservations and
designations is as follows:
December 31,
2010
Governmental Funds:
Major Funds:
General Fund:
Designated for cash flow$1,593,000
Designated for contingent employee benefit172,000
Designated for general contingency554,000
Designated for ensuing year's budget100,000
City Hall Improvement Fund:
Designated for capital improvements189,868
Renewal and Replacement Fund:
Designated for capital improvements4,122,520
Moelter Park Fund:
Designated for park improvements627,122
Street Reconstruction Fund:
Designated for capital improvements1,780,202
Budgeted Projects and Equipment Revolving Fund:
Designated for capital improvements988,113
Nonmajor Funds:
Designated for special revenue programs88,471
Reserved for debt service97,296
Designated for capital improvements3,481,143
Totals$13,793,735
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2010
Note 12 MAJOR TAXPAYER
The City has one major taxpayer, Xcel Energy. The total tax capacity value for this taxpayer represented
approximately 34% of the City's total tax capacity value for taxes payable in 2010.
Note 13 CONDUIT DEBT OBLIGATIONS
From time to time, the City has issued Rental Housing or Industrial Revenue Bonds to provide financial
assistance to private-sector entities for the acquisition and construction of rental housing, office space or a clinic
deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from
payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired
facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any
political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are
not reported as liabilities in the accompanying financial statements.
As of December 31, 2010, there were three series of Industrial Revenue Bonds outstanding. The principal
amount payable at December 31, 2010 was $92,088,243.
Note 14 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:
2010
LeaseAnnual LeaseExpirationRenewal
LocationLesseeAmountAdjustment Factor*DateOptions
58th and NorrellSprint PCS$29,067Greater 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.
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, 2010
With Comparative Actual Amounts For The Year Ended December 31, 2009
Variance with
Final Budget -
2010 Actual Positive2009 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Revenues:
Property taxes$3,291,704$3,291,704$3,279,190($12,514)$3,174,197
Abatement of property taxes - - (10,026)(10,026)(59,807)
Payment in lieu of taxes20,50020,50035,84015,34019,988
Total property taxes3,312,2043,312,2043,305,004(7,200)3,134,378
Intergovernmental:
Federal:
Energy efficiency and conservation
block grant - - 73,89573,895 -
Other public safety grants11,00011,00014,0303,03020,335
State:
Utility valuation transition aid102,947102,947102,947 - 178,390
Police aid70,00070,00058,930(11,070)69,392
PERA rate increase aid2,0402,0402,040 - 2,040
Other public safety grants - - 2,7992,799 -
Other public works grants - - 13,45813,458 -
Other:
Poison ivy grant - - - - 962
Recycling grant - - 11,31211,312 -
Total intergovernmental185,987185,987279,41193,424271,119
Licenses and permits81,65081,650197,181115,531100,074
Charges for services:
General government10,08010,08077,38667,3069,890
Administrative - Enterprise Fund66,42066,42066,420 - 64,400
Total charges for services76,50076,500143,80667,30674,290
Fines and forfeits67,70067,70058,365(9,335)70,102
Investment income58,50058,50050,675(7,825)55,439
Refunds and reimbursements100,000100,000124,70524,705117,441
Donations and contributions - - - - 500
Total revenues3,882,5413,882,5414,159,147276,6063,823,343
Expenditures:
General government:
Mayor and city council:
Current:
Personal services59,22059,22057,9241,29658,576
Materials and supplies800800304496135
Other services and charges33,11033,11020,02113,08921,043
Total mayor and city council93,13093,13078,24914,88179,754
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, 2010
With Comparative Actual Amounts For The Year Ended December 31, 2009
Variance with
Final Budget -
2010 Actual Positive2009 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Expenditures: (continued)
General government: (continued)
City administration:
Current:
Personal services$194,470$194,470$192,846$1,624$184,829
Materials and supplies2,8502,8501,3241,5261,912
Other services and charges51,81551,81548,9542,86156,705
Total City administration249,135249,135243,1246,011243,446
Legal:
Current:
Personal services29,70029,70016,33313,36718,448
General management and building:
Current:
Materials and supplies8,6008,6007,8657356,864
Other services and charges94,38594,38580,77513,61064,201
Total general management and building102,985102,98588,64014,34571,065
Elections:
Current:
Personal services3,5003,5005,503(2,003) -
Materials and supplies350350399(49) -
Other services and charges940940988(48)943
Total elections4,7904,7906,890(2,100)943
Finance:
Current:
Personal services254,100254,100268,244(14,144)200,572
Materials and supplies3,3003,3002,4248762,187
Other services and charges42,95542,95540,1602,79531,864
Total finance300,355300,355310,828(10,473)234,623
Computer system:
Current:
Materials and supplies1,9001,9001,5833172,762
Other services and charges21,00021,00021,946(946)14,778
Total computer system22,90022,90023,529(629)17,540
Audit:
Current:
Personal services21,25021,25022,009(759)19,730
Insurance:
Current:
Other services and charges376,860376,860339,36237,498326,470
Assessing:
Current:
Personal services21,90021,90020,6261,27421,169
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, 2010
With Comparative Actual Amounts For The Year Ended December 31, 2009
Variance with
Final Budget -
2010 Actual Positive2009 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Expenditures: (continued)
General government: (continued)
Planning and zoning:
Current:
Personal services$34,000$34,000$67,184($33,184)$42,027
Materials and supplies14014010733 -
Other services and charges1,5001,5001,430701,100
Total planning and zoning35,64035,64068,721(33,081)43,127
Engineering:
Current:
Other services and charges26,73026,73014,35912,37125,308
General contingency:
Current:
Other services and charges9,9009,9006,3893,5117,134
Total general government1,295,2751,295,2751,239,05956,2161,108,757
Public safety:
Police department:
Current:
Personal services861,410861,410812,34049,070791,420
Materials and supplies61,47561,47544,39717,07844,621
Other services and charges182,565182,565166,65715,908155,794
Capital outlay - - - - 7,500
Total police department1,105,4501,105,4501,023,39482,056999,335
Building inspections:
Current:
Personal services107,000107,000103,7503,250102,222
Materials and supplies2,8002,8009711,8291,715
Other services and charges22,17522,17516,9385,23717,742
Total building inspections131,975131,975121,65910,316121,679
Fire protection:
Current:
Materials and supplies2,0002,0002,000 - -
Other services and charges148,600148,600158,826(10,226)147,472
Total fire protection150,600150,600160,826(10,226)147,472
Civil defense:
Current:
Other services and charges5,0505,0506924,3581,524
Animal control:
Current:
Materials and supplies150150529864
Other services and charges1,4851,4851,1603251,461
Total animal control1,6351,6351,2124231,525
Total public safety1,394,7101,394,7101,307,78386,9271,271,535
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, 2010
With Comparative Actual Amounts For The Year Ended December 31, 2009
Variance with
Final Budget -
2010 Actual Positive2009 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Expenditures: (continued)
Public works:
Street maintenance:
Current:
Personal services$18,750$18,750$17,366$1,384$19,976
Materials and supplies10,69010,6908,0792,6116,298
Other services and charges28,84028,84016,23212,60817,462
Total street maintenance58,28058,28041,67716,60343,736
Snow removal:
Current:
Materials and supplies1,0001,000232768773
Other services and charges121,750121,750146,407(24,657)105,382
Total snow removal122,750122,750146,639(23,889)106,155
Sanitation:
Current:
Other services and charges191,050191,050190,627423187,204
Street lighting:
Current:
Other services and charges68,00068,00061,4896,51163,725
Arborist:
Current:
Personal services14,85014,85016,512(1,662)15,108
Materials and supplies9999 - 99 -
Other services and charges252252131121138
Total arborist15,20115,20116,643(1,442)15,246
Tree removal and planting:
Current:
Other services and charges45,75045,75030,53215,21819,774
Total public works501,031501,031487,60713,424435,840
Parks and recreation:
Parks, playgrounds and rinks:
Current:
Personal services64,12564,12549,23414,89158,139
Materials and supplies16,30016,30011,1125,18817,746
Other services and charges77,88277,88247,68330,19947,284
Capital outlay - - 36,459(36,459) -
Total parks and recreation158,307158,307144,48813,819123,169
Total expenditures3,349,3233,349,3233,178,937170,3862,939,301
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, 2010
With Comparative Actual Amounts For The Year Ended December 31, 2009
Variance with
Final Budget -
2010 Actual Positive2009 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Revenues over expenditures
$533,218$533,218$980,210$446,992$884,042
Other financing sources (uses):
Sale of property - - 42542512,200
Transfers out(726,850)(726,850)(726,850) - (792,600)
Total other financing sources (uses)(726,850)(726,850)(726,425)425(780,400)
Net change in fund balance($193,632)($193,632)253,785$447,417103,642
Fund balance - January 12,720,0122,616,370
Fund balance - December 31$2,973,797$2,720,012
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS - RETIREE HEALTH PLAN
For The Year Ended December 31, 2010
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, 2010
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 FUND FINANCIAL STATEMENTS
ó ̸· °¿¹» ·²¬»²¬·±²¿´´§ ´»º¬ ¾´¿²µ ó
NONMAJOR GOVERNMENTAL FUNDS
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 11
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2010
With Comparative Totals For December 31, 2009
Totals
Nonmajor
SpecialDebtCapitalGovernmental Funds
AssetsRevenueServiceProject20102009
Cash and investments$87,502$92,967$3,499,601$3,680,070$3,123,412
Accrued interest receivable9691,05631,54233,56759,197
Taxes receivable:
Delinquent - 10,903 - 10,90316,555
Due from county - 3,273 - 3,2735,422
Special assessments receivable:
Deferred - - 74,03874,03896,645
Accounts receivable - net - - - - 812
Land held for resale168,518 - - 168,518 -
Total assets$256,989$108,199$3,605,181$3,970,369$3,302,043
Liabilities and Fund Balance
Liabilities:
Accounts payable$ - $ - $ - $ - $7,015
Due to developers - - 50,00050,00050,000
Deferred revenue168,51810,90374,038253,459112,580
Total liabilities168,51810,903124,038303,459169,595
Fund balance:
Reserved - 97,296 - 97,296102,115
Unreserved:
Designated88,471 - 3,481,1433,569,6143,030,333
Total fund balance88,47197,2963,481,1433,666,9103,132,448
Total liabilities and fund balance$256,989$108,199$3,605,181$3,970,369$3,302,043
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 12
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2010
With Comparative Totals For The Year Ended December 31, 2009
Totals
Special DebtCapitalNonmajor Governmental Funds
RevenueServiceProject20102009
Revenues:
General property taxes$ - $392,805$ - $392,805$336,292
Charges for services - - 417,605417,60533,102
Fines and forfeits15,396 - - 15,3964,486
Special assessments - - 28,58328,58343,810
Investment income2,1792,37670,96775,522103,274
Refunds and reimbursements531 - - 53119,981
Total revenues18,106 395,181 517,155 930,442 540,945
Expenditures:
Current:
General government9,241 - - 9,241480
Public safety2,613 - - 2,6138,398
Public works - - 4,8254,82535,795
Capital outlay168,518 - 16,636185,154897,800
Debt service:
Principal - 250,000 - 250,000135,000
Interest - 272,000 - 272,000255,213
Total expenditures180,372 522,000 21,461 723,833 1,332,686
Revenues over (under) expenditures(162,266)(126,819)495,694 206,609 (791,741)
Other financing sources (uses):
Bonds issued - - - - 21,582
Transfers in150,000122,000205,853477,853207,461
Transfers out - - (150,000)(150,000)(394)
Total other financing sources (uses)150,000 122,000 55,853 327,853 228,649
Net change in fund balance(12,266)(4,819)551,547 534,462 (563,092)
Fund balance - January 1100,737102,1152,929,5963,132,4483,695,540
Fund balance - December 31$88,471$97,296$3,481,143$3,666,910$3,132,448
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 13
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2010
With Comparative Totals For December 31, 2009
202 Forefeiture 204 Economic
Totals Nonmajor Special Revenue
and SeizureDevelopment
Funds
Assets20102009
Cash and investments$53,535$33,967$87,502$98,615
Accrued interest receivable4864839691,575
Accounts receivable - - - 812
Land held for resale - 168,518168,518 -
Total assets$54,021$202,968$256,989$101,002
Liabilities and Fund Balance
Liabilities:
Accounts payable$ - $ - $ - $265
Deferred revenue - 168,518168,518 -
Total liabilities0168,518168,518265
Fund balance:
Unreserved:
Designated for special revenue programs54,02134,45088,471100,737
Total liabilities and fund balance$54,021$202,968$256,989$101,002
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, 2010
With Comparative Totals For The Year Ended December 31, 2009
202 Forefeiture 204 Economic
Totals Nonmajor Special Revenue
and SeizureDevelopment
Funds
20102009
Revenues:
Investment income$1,093$1,086$2,179$2,647
Refunds and reimbursements531 - 531301
Confiscated property15,396 - 15,3964,486
Totalrevenues17,020 1,086 18,106 7,434
Expenditures:
General government:
Current:
Contractual services -9,2419,241480
Public safety:
Current:
Materials and supplies2,463 - 2,4636,076
Contractual services150 - 1502,322
Capital outlay - 168,518168,518 -
Total expenditures2,613 177,759 180,372 8,878
Revenues over (under) expenditures14,407 (176,673)(162,266)(1,444)
Other financing sources (uses):
Transfers in - 150,000150,000 -
Net change in fund balance14,407(26,673)(12,266)(1,444)
Fund balance - January 139,61461,123100,737102,181
Fund balance - December 31$54,021$34,450$88,471$100,737
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 15
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2010
With Comparative Totals For December 31, 2009
526 G.O. Capital 527 G.O. Capital
ImprovementImprovement
Bonds of 2008Bonds of 2009
Total Nonmajor Debt Service Funds
20102009
Assets
Cash and investments$85,566$7,401$92,967$94,655
Accrued interest receivable7363201,0562,038
Taxes receivable:
Delinquent10,903 - 10,90316,555
Due from county3,273 - 3,2735,422
Total assets$100,478$7,721 $108,199 $118,670
Liabilities and Fund Balance
Liabilities:
Deferred revenue$10,903$0$10,903$16,555
Fund balance:
Reserved for debt service89,5757,72197,296102,115
Total liabilities and fund balance$100,478$7,721 $108,199 $118,670
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, 2010
With Comparative Totals For The Year Ended December 31, 2009
3
526 G.O. 527 G.O.
CapitalCapital
ImprovementImprovement
Total Nonmajor Debt Service
Bonds of 2008Bonds of 2009
Funds
20102009
Revenues:
General property taxes$392,805$ - $392,805$336,292
Investment income1,6567202,3764,607
Total revenues394,461720395,181340,899
Expenditures:
Debt service:
Principal150,000100,000250,000135,000
Interest241,65030,350272,000252,613
Total expenditures391,650130,350522,000387,613
Revenues over (under) expenditures2,811 (129,630)(126,819)(46,714)
Other financing sources:
Transfers in - 122,000122,000 -
Bonds issued - - - 21,582
Total other financing sources0122,000122,00021,582
Net change in fund balance2,811(7,630)(4,819)(25,132)
Fund balance - January 186,76415,351102,115127,247
Fund balance - December 31$89,575 $7,721 $97,296 $102,115
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2010
With Comparative Totals For December 31, 2009
732 Novak
712 Storm Sewer Avenue Street and
405 Park 500 Capital Renewal / Utility
DevelopmentRevolving FundReplacement FundImprovements
Assets
Cash and investments$747,930$291,163$238,076$50,000
Accrued interest receivable6,0773,6181,877 -
Special assessments receivable:
Deferred -74,038 - -
Total assets$754,007 $368,819 $239,953 $50,000
Liabilities and Fund Balance
Liabilities:
Accounts payable$ - $ - $ - $ -
Due to developers - - -50,000
Deferred revenue -74,038 - -
Total liabilities074,038050,000
Fund balance:
Unreserved:
Designated for capital improvement754,007294,781239,953 -
Total fund balance754,007294,781239,9530
Total liabilities and fund balance $754,007 $368,819 $239,953 $50,000
Statement 17
734 Water 771 Sanitary 773 AAE -
Tower735 Well 736 Sewer Sewer772 Water Storm Sewer
Totals Nonmajor Capital
RehabilitationRehabilitationRehabilitationConnectionConnectionConnection
Project Funds
20102009
$337,981$78,023$42,415$393,877$410,703$909,433$3,499,601$2,930,142
2,3987034323,8603,3929,18531,54255,584
- - - - - - 74,03896,645
$340,379 $78,726 $42,847 $397,737 $414,095 $918,618 $3,605,181 $3,082,371
$ - $ - $ - $ - $ - $ - $ - $6,750
- - - - - - 50,00050,000
- - - - - - 74,03896,025
0 0 0 0 0 0 124,038 152,775
340,37978,72642,847397,737414,095918,6183,481,1432,929,596
340,379 78,726 42,847 397,737 414,095 918,618 3,481,143 2,929,596
$340,379 $78,726 $42,847 $397,737 $414,095 $918,618 $3,605,181 $3,082,371
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2010
With Comparative Totals For The Year Ended December 31, 2009
732 Novak
712 Storm Sewer Avenue Street and
405 Park 500 Capital Renewal / Utility
DevelopmentRevolving FundReplacement FundImprovements
Revenues:
Charges for services:
Connections charges$ - $ - $ - $ -
Rents - - - -
Park dedication fee241,440 - - -
Special assessments -28,583 - -
Investment income13,6738,1394,223 -
Refunds and reimbursements - - - -
Total revenues255,11336,7224,2230
Expenditures:
Public works:
Current:
Contractual services -4,825 - -
Capital outlay -16,636 - -
Debt service - interest - - - -
Total expenditures021,46100
Revenues over (under) expenditures255,11315,2614,2230
Other financing sources (uses):
Transfers in - -78,000 -
Transfers out -(150,000) - -
Total other financing sources (uses)0(150,000)78,0000
Net change in fund balance255,113(134,739)82,2230
Fund balance - January 1498,894429,520157,730 -
Fund balance - December 31$754,007$294,781$239,953$0
Statement 18
734 Water 771 Sanitary 773 AAE -
Tower735 Well 736 Sewer Sewer772 Water Storm Sewer
Totals Nonmajor Capital Project
RehabilitationRehabilitationRehabilitationConnectionConnectionConnection
Funds
20102009
$ - $ - $ - $22,105$114,866$10,127$147,098$5,419
29,067 - - - - - 29,06727,683
- - - - - - 241,440 -
- - - - - - 28,58343,810
5,3951,5829728,6847,63320,66670,96796,020
- - - - - - - 19,680
34,4621,58297230,789122,49930,793517,155192,612
- - - - - - 4,82535,795
- - - - - - 16,636897,800
- - - - - - - 2,600
00000021,461936,195
34,4621,58297230,789122,49930,793495,694(743,583)
118,8479,006 - - - - 205,853207,461
- - - - - - (150,000)(394)
118,8479,006000055,853207,067
153,30910,58897230,789122,49930,793551,547(536,516)
187,07068,13841,875366,948291,596887,8252,929,5963,466,112
$340,379 $78,726 $42,847 $397,737 $414,095 $918,618 $3,481,143 $2,929,596
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 19
SUBCOMBINING BALANCE SHEET
AGENCY FUNDS
December 31, 2010
With Comparative Totals For December 31, 2009
902 Developer 903 Developer
Deposit FundEscrow FundTotals - Agency Funds
20102009
Assets
Cash and investments$88,838$96,500$185,338$172,408
Due from developers15,735 - 15,7356,859
Total assets$104,573 $96,500 $201,073 $179,267
Liabilities
Escrow deposits payable$ - $96,500$96,500$101,500
Accounts payable6,551 - 6,5513,635
Due to developers98,022 - 98,02274,132
Total liabilities$104,573 $96,500 $201,073 $179,267
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 20
SUBCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2010
BalanceBalance
January 1,December 31,
2010AdditionsDeletions2010
902 Developer Deposit Fund
Assets:
Cash and investments$70,908$35,703$17,773$88,838
Due from developers6,85915,7356,85915,735
Total assets$77,767$51,438$24,632$104,573
Liabilities:
Accounts payable$3,635$6,551$3,635$6,551
Due to developers74,13244,88720,99798,022
Total liabilities$77,767$51,438$24,632$104,573
903 Developer Escrow Fund
Assets:
Cash and investments$101,500$5,600$10,600$96,500
Liabilities:
Escrow deposits payable$101,500$5,600$10,600$96,500
Total Agency:
Assets:
Cash and investments$172,408$41,303$28,373$185,338
Due from developers6,85915,7356,85915,735
Total assets$179,267$57,038$35,232$201,073
Liabilities:
Escrow deposits payable$101,500$5,600$10,600$96,500
Accounts payable3,6356,5513,6356,551
Due to developers74,13244,88720,99798,022
Total liabilities$179,267$57,038$35,232$201,073
ó ̸· °¿¹» ·²¬»²¬·±²¿´´§ ´»º¬ ¾´¿²µ ó
STATISTICAL SECTION (UNAUDITED)
CITY OF OAK PARK HEIGHTS, MINNESOTA
NET ASSETS BY COMPONENT
(1)
Last Seven Fiscal Years
(Accrual Basis of Accounting)
20042005
Governmental activities:
Invested in capital assets, net of related debt$10,059,989$9,928,521
Restricted1,192,681856,611
Unrestricted7,326,0308,213,513
Total governmental activities net assets$18,578,700$18,998,645
Business-type activities:
Invested in capital assets, net of related debt$5,646,237$5,985,350
Unrestricted834,8271,108,069
Total business-type activities net assets$6,481,064$7,093,419
Primary government:
Invested in capital assets, net of related debt$15,706,226$15,913,871
Restricted1,192,681856,611
Unrestricted8,160,8579,321,582
Total primary government net assets$25,059,764$26,092,064
(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
20062007200820092010
$11,481,494$11,799,071$12,328,032$11,908,771$11,519,528
899,708614,170235,559867,103847,862
10,290,01810,950,97811,705,19212,164,92513,695,685
$22,671,220$23,364,219$24,268,783$24,940,799$26,063,075
$5,826,582$6,355,129$6,227,796$6,925,825$6,752,968
1,382,1631,355,5641,165,2051,156,2081,166,853
$7,208,745$7,710,693$7,393,001$8,082,033$7,919,821
$17,308,076$18,154,200$18,555,828$18,834,596$18,272,496
899,708614,170235,559867,103847,862
11,672,18112,306,54212,870,39713,321,13314,862,538
$29,879,965$31,074,912$31,661,784$33,022,832$33,982,896
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN NET ASSETS
(1)
Last Seven Fiscal Years
(Accrual Basis of Accounting)
20042005
Expenses
Governmental activities:
General government$832,609$882,800
Public safety1,155,2431,210,179
Public works602,111511,137
Parks and recreation123,737138,378
Interest on long-term debt67,36555,695
Total governmental activities expenses2,781,0652,798,189
Business-type activities:
Water323,527373,996
Sanitary sewer517,595560,876
Storm sewer41,08234,150
Sanitation167,258164,572
Total business-type activities expenses1,049,4621,133,594
Total primary government expenses$3,830,527$3,931,783
Program revenues
Governmental activities:
Charges for services:
Licenses and permits$304,594$365,512
Inspections - City of Bayport50,33784,719
Administrative - Enterprise Fund90,86094,140
Direct charges to developers315,535139,191
Connection charges -18,326
Park fees -22,952
Refunds and reimbursements91,784106,569
Other activities95,523144,559
Operating grants and contributions68,35888,229
Capital grants and contributions212,63562,686
Total governmental activities program revenues1,229,6261,126,883
Business-type activities:
Charges for services:
Water388,198423,876
Sanitary sewer577,253705,456
Storm sewer96,90973,546
Sanitation70,87896,859
Capital grants and contributions58,706 -
Total business-type activities
program revenues1,191,9441,299,737
Total primary government program revenues$2,421,570$2,426,620
Table 2
Page 1 of 2
20062007200820092010
$987,597$1,046,676$1,477,836$1,356,038$1,575,297
1,226,0421,234,7691,347,1641,364,7341,407,161
755,989796,025796,532957,308980,630
152,899184,008224,426211,795201,716
43,96537,255138,399262,586280,548
3,166,4923,298,7333,984,3574,152,4614,445,352
398,766387,766405,965434,577466,218
661,367606,458670,661680,468740,184
65,14934,27759,11543,337108,467
147,565153,848 - - -
1,272,8471,182,3491,135,7411,158,3821,314,869
$4,439,339$4,481,082$5,120,098$5,310,843$5,760,221
$306,266$155,820$203,041$100,074$197,181
- - - - -
64,46563,20062,04064,40066,420
938,298244,895 - - -
780,14134,595 -5,419147,098
1,004,240 - - -241,440
155,080105,832153,267112,856117,735
116,793151,00284,905112,161180,639
74,105142,87990,54888,187145,048
165,39711,32410,091688,97576,970
3,604,785909,547603,8921,172,0721,172,531
502,407482,100475,658546,606565,859
767,207679,821656,809651,022749,378
74,17373,94274,25774,47375,698
97,26697,764494 - -
- - - - -
1,441,0531,333,6271,207,2181,272,1011,390,935
$5,045,838$2,243,174$1,811,110$2,444,173$2,563,466
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN NET ASSETS
(1)
Last Seven Fiscal Years
(Accrual Basis of Accounting)
20042005
Net (expense) revenue:
Governmental activities($1,551,439)($1,671,306)
Business-type activities142,482166,143
Total primary government net
(expense) revenue(1,408,957)(1,505,163)
General revenues and other changes in net assets
Governmental activities:
General property taxes1,979,2882,222,335
Unrestricted grants and contributions3,0602,040
Investment earnings199,737258,614
Gain on sale of property - -
Miscellaneous29,12525,206
Transfers90,423(416,944)
Total governmental activities2,301,6332,091,251
Business-type activities:
Investment earnings19,14829,268
Transfers(90,423)416,944
Total business-type activities(71,275)446,212
Total primary government$2,230,358$2,537,463
Change in net assets:
Governmental activities$750,194$419,945
Business-type activities71,207612,355
Total primary government$821,401$1,032,300
(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
20062007200820092010
$438,293($2,389,186)($3,380,465)($2,980,389)($3,272,821)
168,206151,27871,477113,71976,066
606,499(2,237,908)(3,308,988)(2,866,670)(3,196,755)
2,417,0142,730,9943,146,0493,537,8293,692,127
29,838111,09056,693180,430104,987
425,160532,827606,996456,934320,183
244,0999,23720,89512,165 -
16,25427,62622,14814,18616,588
101,917(329,589)432,248(549,139)261,212
3,234,2823,082,1854,285,0293,652,4054,395,097
49,03760,10343,08026,17422,934
(101,917)329,589(432,248)549,139(261,212)
(52,880)389,692(389,168)575,313(238,278)
$3,181,402$3,471,877$3,895,861$4,227,718$4,156,819
$3,672,575$692,999$904,564$672,016$1,122,276
115,326540,970(317,691)689,032(162,212)
$3,787,901$1,233,969$586,873$1,361,048$960,064
CITY OF OAK PARK HEIGHTS, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS
(1)
Last Seven Fiscal Years
(Modified Accrual Basis of Accounting)
20042005
General Fund:
Unreserved:
Designated for cash flow$1,147,000$1,237,000
Designated for employee benefits133,961141,533
Designated for contingencies419,000439,000
Designated for ensuing year's budget - -
Undesignated147,647286,210
Total general fund$1,847,608$2,103,743
All other governmental funds:
Reserved for debt service$454,694$214,783
Unreserved, reported in:
Special revenue funds81,16775,721
Debt service funds - -
Capital projects funds5,381,7346,107,908
Total all other governmental funds$5,917,595$6,398,412
(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 3
20062007200820092010
$1,409,000$1,698,000$1,541,000$1,558,000$1,593,000
169,633183,000188,000188,000172,000
493,000595,000542,000557,000554,000
- - -193,635100,000
230,86939,620345,370223,377554,797
$2,302,502$2,515,620$2,616,370$2,720,012$2,973,797
$717,829$460,263$127,247$102,115$97,296
86,326100,960102,181100,73788,471
47,315 - - - -
8,022,5888,480,88414,977,67813,236,36111,188,968
$8,874,058$9,042,107$15,207,106$13,439,213$11,374,735
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
(1)
Last Seven Fiscal Years
20042005
Revenues:
General property taxes$1,969,207$2,218,906
Special assessments305,758225,516
Licenses and permits304,594365,512
Intergovernmental70,362101,519
Charges for services150,126294,846
Fines and forfeits78,27469,850
Investment income199,737258,614
Direct charges to developers374,241139,191
Refunds and reimbursements109,958125,405
Donations and contributions20,32710,117
Total revenues3,582,5843,809,476
Expenditures:
Current:
General government793,871851,437
Public safety1,119,5331,172,803
Public works296,997208,848
Parks and recreation88,18099,980
Capital outlay50,10421,000
Debt service:
Principal retirement400,000395,000
Interest and other68,33456,710
Bond issuance costs - -
Construction/acquisition costs622,218358,344
Total expenditures3,439,2373,164,122
Revenues over (under) expenditures143,347645,354
Other financing sources (uses):
Sale of capital assets - -
Bonds issued - -
Premium on bonds issued - -
Transfers in178,923180,098
Transfers out(88,500)(88,500)
Total other financing sources (uses)90,42391,598
Net change in fund balance$233,770$736,952
Debt service as a percentage of noncapital expenditures16.9%16.2%
Debt service as percentage of total expenditures 13.6%14.3%
(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
20062007200820092010
$2,423,246$2,687,730$3,156,807$3,470,670$3,697,809
553,45042,34232,07843,81028,583
306,266155,820203,041100,074197,181
102,818188,594141,141276,772282,551
1,886,776192,545102,199107,392561,411
84,73066,18963,60274,58873,761
425,160532,827606,996456,934320,183
938,298244,895 - - -
155,080105,832134,987137,422134,323
136,51483,06427,672612,5252,184
7,012,338 4,299,838 4,468,523 5,280,187 5,297,986
941,8751,002,7631,075,6161,117,8221,370,381
1,180,4411,193,4511,292,4651,277,6001,312,335
423,010458,241632,530586,872592,897
107,071138,491146,928139,188125,414
443,822411,101160,9071,053,745389,806
190,000125,000750,000135,000250,000
44,53537,688134,850255,213272,000
- -111,02033,537 -
1,353,195916,653740,6573,903,9083,193,860
4,683,949 4,283,388 5,044,973 8,502,885 7,506,693
2,328,389 16,450 (576,450)(3,222,698)(2,208,707)
244,0999,23721,28912,200425
- -6,300,0001,195,000 -
- -5,827 - -
190,417432,2801,790,9261,144,241397,589
(88,500)(76,800)(1,275,843)(792,994) -
346,016 364,717 6,842,199 1,558,447 398,014
$2,674,405$381,167$6,265,749($1,664,251)($1,810,693)
8.1%5.5%21.9%11.1%13.3%
5.0%3.8%17.5%4.6%7.0%
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 5
TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
FiscalLess:
YearCommercial/TotalFiscalAdjustedTotalEstimatedTax Capacity
EndedResidentialIndustrialPublicAllTaxDisparityTax CapacityDirect TaxMarketas a Percent
December 31,PropertyPropertyUtilityOtherCapacityContributionValueRateValueof EMV
2001$2,381,346$2,360,184$2,486,826$141,694$7,383,123$918,384$6,464,73923.692$324,531,100114.21%
20022,126,1181,554,2211,399,70683,3955,163,440611,0974,552,34341.741349,905,800113.42%
20032,390,9182,058,2691,430,73494,6225,974,543657,6515,316,89235.799406,640,800112.37%
20042,603,2442,303,4611,417,841121,3816,445,927798,0485,647,87934.382447,871,200114.13%
20052,907,9262,526,8581,378,249105,9076,918,940954,5785,964,36236.488485,026,700116.00%
20063,269,4682,687,6501,415,909112,9217,485,9481,037,7536,448,19538.377539,357,100116.09%
20073,318,0523,331,9101,733,70388,0738,471,7381,115,2157,356,52335.731579,089,800115.16%
20083,429,1043,679,1883,060,14482,32910,250,7651,508,6608,742,10536.343673,570,600117.26%
20093,483,7263,952,5233,568,95793,83211,099,0382,177,6788,921,36038.732718,753,400124.41%
20103,304,1103,869,5683,311,71687,48010,572,8742,492,1118,080,76343.845682,742,100130.84%
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
200123.69226.01650.37317.267117.348
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
Source: Continuing Disclosure Document, Washington County website.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 7
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
20102001
Percentage Percentage
Taxableof Total CityTaxableof Total City
CapacityCapacityCapacityCapacity
TaxpayerValueRankValueValueRankValue
Xcel Energy$3,553,044133.61%$2,706,275136.72%
VSSA Boutwells Landing LLC531,17225.02%122,78361.67%
OPH Pat LLC & OPH Val LLC321,42833.04% - - -
Wal-Mart Stores, Inc.300,85642.85% - - -
SC Mall LLC251,25052.38%323,26824.39%
OPPGF LLC223,96062.12% - - -
Menard Inc.217,84872.06%204,023 42.77%
Lowe's Home Centers, Inc.198,81481.88% - - -
W.A.T.E. Enterprises Inc.137,68091.30% - - -
Raduenz Dealership 125,476101.19% - - -
KTJ Limited Partnership Eleven - - - 310,783 34.22%
Wal-Mart Real Estate Business - - - 139,532 51.89%
Oak Ridge Place of Oak Park - - - 87,259 71.18%
Stillwater West LLC - - - 68,414 80.93%
Secure Mini Storage Limited - - - 66,041 90.90%
Jacob Holdings of 60th Street - - - 62,012 100.84%
Total$5,861,52855.44%$4,090,39055.50%
Total All Property $10,572,874$7,370,050
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
2001$1,588,435$1,566,93898.65%$18,162$1,585,10099.79%
20021,967,5791,904,48896.79%16,7401,921,22897.64%
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%(29,572)2,616,84994.08%
20083,286,2303,211,39297.72%(23,914)3,187,47896.99%
20093,574,8553,447,96596.45%61,0873,509,05298.16%
20103,662,4553,584,02797.86% - 3,584,02797.86%
(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
2001$615,000$2,040,000$2,655,00035.96%668
2002510,0001,760,0002,270,00043.96%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
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, 2010
Estimated
EstimatedShare of
DebtPercentageOverlapping
Governmental UnitOutstandingApplicableDebt
Debt repaid with property taxes:
Independent School District No. 834$71,755,00010.06%$7,218,553
Washington County120,760,0003.15%3,803,940
NMISD No. 9169,710,0001.47%142,737
Metro Transit140,356,6350.34%477,213
Subtotal - overlapping debt11,642,443
City direct debt7,110,000 100.00%7,110,000
Total direct and overlapping debt$18,752,443
Sources: Continuing Disclosure Document
Notes: Except for the City direct debt, amounts are as of December 31, 2009 because 2010 information was not available.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 11
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2010
Market value$682,742,100
Debt limit (3% of market value)20,482,263
Debt applicable to limit:
General obligation bonds7,110,000
Less: Amount set aside for repayment
of general obligation debt(97,296)
Total net debt applicable to limit7,012,704
Legal debt margin$13,469,559
Legal Debt Margin Calculation for Fiscal Years 2001 Through 2010
Net DebtLegalAmount of Debt
FiscalDebtApplicable toDebtApplicable to
YearLimitLimitMarginDebt Limit
2001$6,491,622$ - $6,491,6220.00%
20026,998,116 - 6,998,1160.00%
20038,132,816 - 8,132,8160.00%
20048,957,424 - 8,957,4240.00%
20059,700,534 - 9,700,5340.00%
200610,787,142 - 10,787,1420.00%
200711,581,796 - 11,581,7960.00%
200820,207,1186,172,75314,034,36530.55%
200921,562,6027,257,88514,304,71733.66%
201020,482,2637,012,70413,469,55934.24%
Note: In 2008, State Statutes increased the percentage used to calculate the debt limit from 2% to 3%.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 12
PLEDGED REVENUE COVERAGE
Last Ten Fiscal Years
Improvement Bonds
PropertySpecial
FiscalTaxAssessmentDebt Service
(1)(2)
CollectionsCollections
YearPrincipalInterestCoverage
2001$ -$311,840$850,000$133,3520.317
2002 -247,618280,00079,3430.689
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
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
(2)(1)(1)
RateIncomeIncome
YearPopulation
20013,9572.30%
20024,2913.60%
20034,3294.10%
20044,6334.00%
20054,6643.40%
Information Not Available
20064,6763.50%
20074,7514.10%
20084,7085.40%
20094,653(1)
20104,3396.60%
Sources: Metropolitan Council (population), Continuing Disclosure Document (unemployment rate)
(1)
Information Not Available
(2)
Washington County rate. The 2010 rate is as of April 2010.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 14
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
20102001
EmployerProduct ServiceEmployeesEmployees
Andersen CorporationWindow Manufacturer550 -
VSSA - Boutwell's Landing/McKean SquareSenior Community Housing454 -
State of Minnesota Correctional FacilityGovernment Correctional Institution362350
Wal-Mart Stores, Inc.Retail355150
ISD No. 834, StillwaterPublic education184163
Menard's Inc.Retail Lumber/Hardware127 -
Lowe'sRetail115 -
Xcel EnergyElectric Utility107105
Kohl'sRetail95 -
Stillwater MotorsAuto Dealership/Service Repair88 -
Herberger's Department StoreRetail Store -125
City of Oak Park HeightsCity Government -75
Total2,437968
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/Program200120022003
General government:
Administration332
Finance333
Building inspections332
Public safety101010
Public works333
Total222220
Source: City Finance Department
Table 15
Full-Time Equivalent Employees as of December 31,
2004200520062007200820092010
2222222
3333333
2222222
10101010101010
4444433
21212121212020
CITY OF OAK PARK HEIGHTS, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program200120022003
Police:
Physical arrests256263237
Parking violations218155145
Traffic violations859611712
Fire:
Fire and related calls61108122
Medical calls139174164
Building inspection:
Permits issued:
Residential465444
Commercial737513
Total permit valuation$5,799,263$11,651,369$19,878,493
Water:
Connections1,2011,1981,212
Average daily demand (thousands of gallons)600,000576,000645,000
Sewer:
Connections1,2881,2811,273
Sources: Various City departments.
Table 16
Fiscal Year
2004200520062007200820092010
308251240207224208176
11812312492135170171
1,0231,0897386131,0169691,240
113115119106989122
200251302270292293537
48211194 - 1
1113158221
$18,043,522$12,732,475$36,975,066$6,521,063$18,707,532$7,254,000$10,955,024
1,2591,2771,2891,3041,3151,3181,317
611,000614,000676,000681,452654,172681,816576,085
1,2351,2511,2641,2741,2831,2851,289
CITY OF OAK PARK HEIGHTS, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Nine Fiscal Years
Fiscal Year
Function/Program200220032004
Police:
Stations111
Squad cars777
Fire stations
Other public works:
Miles of paved streets22.022.022.0
Streetlights265330392
Traffic signals222
Parks and recreation:
Parkland acreage105105105
Number of parks444
Water:
Water mains (miles)25.526.626.6
Fire hydrants302316316
Storage capacity (thousands of gallons)750750750
Wastewater:
Sanitary sewers (miles)21.921.923.3
Storm sewers (miles)12.012.512.5
Sources: Various City departments.
Table 17
Fiscal Year
200520062007200820092010
111111
666666
22.022.022.022.022.022.0
392392396396396396
222222
105105104108104104
455555
26.626.626.826.827.127.1
316316316316216216
750750750750750750
23.323.324.924.924.924.9
12..512.512.612.612.612.6
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