HomeMy WebLinkAbout2012 Financial Statements
CITY OF OAK PARK HEIGHTS, MINNESOTA
ANNUAL FINANCIAL REPORT
December 31, 2012
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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 Analysis11
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net PositionStatement 125
Statement of ActivitiesStatement 226
Fund Financial Statements:
Balance Sheet - Governmental FundsStatement 328
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental FundsStatement 430
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds Statement 532
Statement of Net Position - Proprietary FundsStatement 633
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary FundsStatement 734
Statement of Cash Flows - Proprietary FundsStatement 835
Statement of Fiduciary Net Position - Agency FundsStatement 936
Notes to Financial Statements37
Required Supplementary Information:
Budgetary Comparison Schedule - General FundStatement 1066
Schedule of Funding Progress - Retiree Health Plan70
Budgetary Comparison Schedule - Note to RSI71
Combining and Individual Nonmajor Fund Financial Statements:
Combining Balance Sheet - Nonmajor Governmental FundsStatement 1176
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental FundsStatement 1277
CITY OF OAK PARK HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
ReferenceNo.
Subcombining Balance Sheet - Nonmajor Special Revenue FundsStatement 1378
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue FundsStatement 1479
Subcombining Balance Sheet - Nonmajor Debt Service FundsStatement 1580
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service FundsStatement 1681
Subcombining Balance Sheet - Nonmajor Capital Project FundsStatement 1782
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project FundsStatement 1884
Agency Funds:
Subcombining Balance SheetStatement 1986
Subcombining Statement of Changes in Assets and LiabilitiesStatement 2087
STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Position by Component - Last Nine Fiscal YearsTable 190
Changes in Net Position - Last Nine Fiscal YearsTable 292
Fund Balances, Governmental Funds - Last Ten Fiscal YearsTable 396
Changes in Fund Balances, Governmental Funds - Last Nine Fiscal YearsTable 498
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of Taxable PropertyTable 5100
Direct and Overlapping Property Tax Capacity RatesTable 6102
Principal Property TaxpayersTable 7103
Property Tax Levies and CollectionsTable 8104
Debt Capacity:
Ratios of Outstanding Debt by TypeTable 9105
Direct and Overlapping Governmental Activities DebtTable 10106
Legal Debt Margin InformationTable 11107
Pledged Revenue CoverageTable 12108
Demographic and Economic:
Demographic and Economic StatisticsTable 13109
Principal EmployersTable 14111
Operating Information:
Full-Time Equivalent City Government Employees By Function/ProgramTable 15112
Operating Indicators by Function/ProgramTable 16114
Capital Asset Statistics by Function/ProgramTable 17116
INTRODUCTORY SECTION
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CITY OF OAK PARK HEIGHTS, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
December 31, 2012
Term Expires
Mayor:
David BeaudetDecember 31, 2012
Councilmembers:
Les AbrahamsonDecember 31, 2014
Mary McComberDecember 31, 2012
Mike RunkDecember 31, 2012
Mark SwensonDecember 31, 2014
Administrator:
Eric JohnsonAppointed
Finance Director:
Betty CarusoAppointed
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FINANCIAL SECTION
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Oak Park Heights, Minnesota (the City) we offer readers of
the City’s financial statements this narrative overview and analysis of the financial activities
of the City for the fiscal year ended December 31, 2012.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$35,447,785 (net position). Of this amount, $16,522,031 (unrestricted net position) 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 position increased by $854,405.
As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $21,538,485, an increase of $6,507,048. The increase is mainly due
to the issuance of $5,140,000 of G.O. CIP Refunding Bonds of 2012A, for which the
proceeds were placed into an escrow account. Also contributing to the increase were
$408,914 of transfers from Enterprise funds for capital improvement projects and from
overall favorable budget variances.
At the end of the current fiscal year the general fund balance was $3,669,633 of which
$4,609 is nonspendable, $165,000 is assigned, and $2,794,000 of unassigned fund balance is
meant to fund cash flow and contingencies during 2013.
The General Fund balance increased by $408,072 as a result of positive budget variances in
revenue and expenditures.
The City transferred $314,225 from the General Fund to the Budgeted Projects Fund for
capital improvements for streets, parks, public safety, public works, and general government.
The City also transferred $329,000 from the General Fund to the Street Reconstruction Fund,
$78,000 from the General Fund to the Storm Sewer Renewal Replacement Fund and
$536,000 from the General Fund to the G.O. Capital Improvement Bond Funds of 2008 and
2009.
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.
Managements 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 position presents information on all of the City’s assets and liabilities,
with the difference between the two reported as net position. Over time, increases or
decreases in net position 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 position changed
during the most recent fiscal year. All changes in net position 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
governmental fund statement of revenues, expenditures and change in fund balance provide a
Managements Discussion and Analysis
’
reconciliation to facilitate this comparison between governmental funds and governmental
activities.
The City maintains five individual major governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures and changes in fund balance for the following major funds:
General Fund
G.O. CIP Refunding Bonds of 2012A – Debt Service Fund
Capital Revolving Fund – Capital Project Fund
Street Reconstruction Fund – 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.
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.
Managements Discussion and Analysis
’
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 position may serve over time as a useful indicator of a government's
financial position. In the case of the City, assets exceeded liabilities by $35,447,785 at the
close of the most recent fiscal year.
The largest portion of the City’s net position ($17,918,546 or 51% 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.
City of Oak Park Heights’ Net Position
Governmental ActivitiesBusiness-Type ActivitiesTotals
201220112012201120122011
Assets:
Current and other assets$22,160,497$15,682,544$1,368,075$1,314,158$23,528,572$16,996,702
Capital assets17,752,20218,236,4366,746,3446,964,78724,498,54625,201,223
Total assets$39,912,699$33,918,980$8,114,419$8,278,945$48,027,118$42,197,925
Liabilities:
Long-term liabilities outstanding$11,767,849$6,767,937$32,721$35,564$11,800,570$6,803,501
Other liabilities723,283658,12955,480142,915778,763801,044
Total liabilities$12,491,132$7,426,066$88,201$178,479$12,579,333$7,604,545
Net position:
Net investment in capital assets$11,172,202$11,381,436$6,746,344$6,964,787$17,918,546$18,346,223
Restricted1,007,2081,152,789 - - 1,007,2081,152,789
Unrestricted15,242,15713,958,6891,279,8741,135,67916,522,03115,094,368
Total net position$27,421,567$26,492,914$8,026,218$8,100,466$35,447,785$34,593,380
A portion of the City’s net position represent resources that are subject to external restrictions
on how they may be used. The remaining balance of unrestricted net position may be used to
meet the City’s ongoing obligations to citizens and creditors.
Managements Discussion and Analysis
’
At the end of the current fiscal year, the City is able to report positive balances in all three
categories of net position, both for the government as a whole, as well as for its separate
governmental and business-type activities.
Governmental Activities
Governmental activities increased the City’s net position by $928,653 during 2012. Key
elements of this increase are as follows:
City of Oak Park Heights’ Changes in Net Position
Governmental ActivitiesBusiness-Type ActivitiesTotals
201220112012201120122011
Revenues:
Program revenues:
Charges for services$395,379$442,037$1,598,703$1,497,669$1,994,082$1,939,706
Operating grants and contributions112,91296,402 - 4,594112,912100,996
Capital grants and contributions24,13115,943 - - 24,13115,943
General revenues:
General property taxes4,262,9833,934,309 - - 4,262,9833,934,309
Tax increment26,583 - - - 26,583 -
Grants and contributions not
restricted to specific programs2,0402,040 - - 2,0402,040
Gain on sale of capital assets7,9508,960 - - 7,9508,960
Other revenue29,17217,718 - - 29,17217,718
Unrestricted investment earnings204,422239,76314,04617,780218,468257,543
Total revenues5,065,5724,757,1721,612,7491,520,0436,678,3216,277,215
Expenses:
General government1,455,3591,381,589 - - 1,455,3591,381,589
Public safety1,431,5941,411,690 - - 1,431,5941,411,690
Public works1,128,249999,473 - - 1,128,249999,473
Parks and recreation248,243239,100 - - 248,243239,100
Interest on long-term debt377,713275,196 - - 377,713275,196
Water - - 470,266472,040470,266472,040
Sanitary sewer - - 668,588746,656668,588746,656
Storm sewer - - 43,90448,36043,90448,360
Total expenses 4,641,1584,307,0481,182,7581,267,0565,823,9165,574,104
Increase in net position before transfers424,414450,124429,991252,987854,405703,111
Transfers504,239(20,285)(504,239)20,285 - -
Change in net position928,653429,839(74,248)273,272854,405703,111
Net position - January 1, as previously reported26,492,91426,063,0758,100,4667,919,82134,593,38033,982,896
Prior period adjustment - - - (92,627) - (92,627)
Net position - January 1, as restated26,492,91426,063,0758,100,4667,827,19434,593,38033,890,269
Net position - December 31$27,421,567$26,492,914$8,026,218$8,100,466$35,447,785$34,593,380
Managements Discussion and Analysis
’
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenditures:
Managements Discussion and Analysis
’
Business-Type Activities
Business-type activities decreased net position by $74,248 during 2012. Below are graphs
showing the business-type activities revenue and expense comparisons:
Managements 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 $21,538,485.
The General Fund increased by $408,072 in 2012. Revenues exceeded budgeted estimates
by $83,933 due to a strong property tax collection rate and receiving more permit revenue
than was budgeted.
Expenditures were under budget by $309,721 due to most city departments actual
expenditures being under budget. The budget savings was primarily due to reduced costs in
personal services as a result of retirements with reduced replacement costs and the combining
of the Building Inspector position with the Planning/Code Enforcement position. Other
budget savings are from reduced costs incurred for the contractual services the city utilizes.
The G.O. CIP Refunding Bonds of 2012A increased by $5,194,790, due to the City issuing
$5,140,000 of Crossover Refunding Bonds during 2012. The bonds are for a 2016 scheduled
repayment of the G.O. Capital Improvement Bonds of 2008. The refunding will result in a
debt service savings of $404,000.
The Capital Revolving Fund decreased by $89,316 as a result of expenditures related to the
Highway 36 Bridge Project that will be constructed by the State of Minnesota and the
Minnesota Department of Transportation. The costs incurred are a result of negotiating
funding and for the preliminary costs of the infrastructure that the city is obligated to relocate
for the project.
The Street Reconstruction Capital Project Fund increased by $359,518 during 2012 due to
transfers in from other funds and investment income.
The Renewal and Replacement Capital Project Fund increased by $306,079 during 2012.
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 increased by $3,801 during 2012.
The nonmajor debt service funds increased by $2,470 during 2012.
Managements Discussion and Analysis
’
The nonmajor capital project funds increase by $321,634 during 2012 due to transfers in
from other funds for the accumulation of resources for future capital improvement
expenditures.
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 amended once during 2012, increasing budgeted building
inspections expenditures by $10,000.
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, 2012, amounts to $24,498,546 (net of accumulated
depreciation). This investment in capital assets includes land, construction in progress,
buildings and structures, other improvements, infrastructure, machinery and equipment and
furniture and fixtures.
City of Oak Park Heights’ Capital Assets
(Net of Depreciation
)
BeginningEnding
BalanceIncreasesDecreasesBalance
Governmental activities:
Capital assets, not being depreciated:
Land$2,238,930$ - $ - $2,238,930
Construction in progress - 2,675 - 2,675
Total capital assets, not being depreciated2,238,9302,67502,241,605
Capital assets, being depreciated:
Buildings and structures7,547,263 - (7,013)7,540,250
Other improvements1,523,1596,400 - 1,529,559
Machinery and equipment550,250185,016(153,622)581,644
Furniture and fixtures419,862 - - 419,862
Infrastructure12,811,94695,325 - 12,907,271
Total capital assets, being depreciated22,852,480286,741(160,635)22,978,586
Less accumulated depreciation for:
Buildings and structures294,694180,456(7,013)468,137
Other improvements219,80847,258 - 267,066
Machinery and equipment328,40957,682(124,254)261,837
Furniture and fixtures144,65737,332 - 181,989
Infrastructure5,867,406421,554 - 6,288,960
Total accumulated depreciation6,854,974744,282(131,267)7,467,989
Total capital assets being depreciated - net15,997,506(457,541)(29,368)15,510,597
Governmental activities capital assets - net$18,236,436($454,866)($29,368)$17,752,202
Managements Discussion and Analysis
’
BeginningEnding
BalanceIncreasesDecreasesBalance
Business-type activities:
Capital assets, not being depreciated:
Land$937,919$ - $ - $937,919
Total capital assets, not being depreciated937,91900937,919
Capital assets, being depreciated:
Buildings and structures2,047,665 - - 2,047,665
Machinery and equipment402,86126,127(834)428,154
Infrastructure7,311,429 - - 7,311,429
Total capital assets, being depreciated9,761,95526,127(834)9,787,248
Less accumulated depreciation:
Buildings and structures656,27076,890 - 733,160
Machinery and equipment187,90619,722(499)207,129
Infrastructure2,890,911147,623 - 3,038,534
Less accumulated depreciation3,735,087244,235(499)3,978,823
Total capital assets being depreciated - net6,026,868(218,108)(335)5,808,425
Business-type activities capital assets - net$6,964,787($218,108)($335)$6,746,344
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 bonded debt
outstanding of $11,720,000, an increase of $4,865,000 from 2011.
Additional long-term debt in the amount of $247,346 for compensated absences and
$155,137 of unamortized bond premium was also outstanding at the end of 2012.
City of Oak Park Heights’ Outstanding Debt
General obligation bonds, compensated absences and unamortized bond premium:
Governmental ActivitiesBusiness-Type ActivitiesTotals
201220112012201120122011
General obligation bonds$11,720,000$6,855,000$ - $ - $11,720,000$6,855,000
Compensated absences212,177226,42135,16937,380247,346263,801
Bond premium155,137 - - - 155,137 -
Total$12,087,314$7,081,421$35,169$37,380$12,122,483$7,118,801
Managements Discussion and Analysis
’
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of
total estimated market value. The current debt limitation for the City is $19,308,249. The
City’s 2008A and 2009A Capital Improvement Bonds are counted within the statutory
limitation.
Additional information on the City’s long-term debt can be found in Note 5.
Requests for information.
This financial report is designed to provide a general overview
of the City’s finances for all those with an interest in the government’s finances. Questions
concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Director of Finance, 14168 Oak Park Boulevard, Oak
Park Heights, Minnesota 55082-2007.
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BASIC FINANCIAL STATEMENTS
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CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 1
STATEMENT OF NET POSITION
December 31, 2012
Primary Government
GovernmentalBusiness-TypeTotals
Assets:ActivitiesActivities20122011
Cash and investments$16,334,800$919,948$17,254,748$15,918,933
Cash with escrow agent5,179,790 - 5,179,790 -
Accrued interest receivable107,5767,522115,098147,757
Accounts receivable - net12,787405,732418,519391,437
Due from other governmental units57,9511,99059,94151,738
Prepaid items4,60932,88337,49232,163
Taxes receivable204,842 - 204,842111,734
Special assessments receivable37,019 - 37,01955,529
Land held for resale111,000 - 111,000168,518
Unamortized bond issuance costs110,123 - 110,123118,893
Capital assets (net of accumulated depreciation):
Land2,238,930937,9193,176,8493,176,849
Building and structures7,072,1131,314,5058,386,6188,643,964
Other improvements1,262,493 - 1,262,4931,303,351
Machinery and equipment319,807221,025540,832436,796
Furniture and fixtures237,873 - 237,873275,205
Infrastructure6,618,3114,272,89510,891,20611,365,058
Construction in progress2,675 - 2,675 -
Total assets39,912,6998,114,41948,027,11842,197,925
Liabilities:
Accounts payable256,50426,171282,675216,504
Salaries payable5,3421,8777,2196,258
Contracts payable - - - 121,393
Due to other governmental units1,6677,0708,7379,720
Accrued interest payable15,271 - 15,27110,862
Compensated absences payable:
Due within one year14,7692,44817,21740,300
Due in more than one year197,40832,721230,129223,501
Other post employment benefits125,03417,914142,948121,007
Bonds payable:
Due within one year304,696 - 304,696275,000
Due in more than one year11,570,441 - 11,570,4416,580,000
Total liabilities12,491,13288,20112,579,3337,604,545
Net position:
Net investment in capital assets11,172,2026,746,34417,918,54618,346,223
Restricted for:
Debt service124,817 - 124,817231,464
Park improvements870,864 - 870,864913,170
Other purposes11,527 - 11,5278,155
Unrestricted15,242,1571,279,87416,522,03115,094,368
Total net position$27,421,567$8,026,218$35,447,785$34,593,380
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, 2012
Charges For
ExpensesServices
Functions/Programs
Primary government:
Governmental activities:
General government$1,455,359$24,558
Public safety1,431,594325,433
Public works1,128,24945,388
Parks and recreation248,243 -
Interest on long-term debt377,713 -
Total governmental activities4,641,158395,379
Business-type activities:
Water470,266714,660
Sanitary sewer668,588800,281
Storm sewer43,90483,762
Total business-type activities1,182,7581,598,703
Total primary government$5,823,916$1,994,082
The accompanying notes are an integral part of these financial statements.
Statement 2
Net (Expense) Revenue and
Program RevenuesChanges in Net Assets
Primary Government
OperatingCapital
Totals
Grants andGrants andGovernmentalBusiness-Type
ContributionsContributionsActivitiesActivities20122011
$ -$ - ($1,430,801)$ - ($1,430,801)($1,275,590)
79,600 - (1,026,561) - (1,026,561)(1,044,089)
33,3123,396(1,046,153) - (1,046,153)(930,191)
-20,735(227,508) -(227,508)(227,600)
- -(377,713) -(377,713)(275,196)
112,91224,131(4,108,736)0(4,108,736)(3,752,666)
- - -244,394244,394181,217
- - -131,693131,69335,610
- - -39,85839,85818,380
000415,945415,945235,207
$112,912$24,131(4,108,736)415,945(3,692,791)(3,517,459)
General revenues:
General property taxes4,262,983 - 4,262,9833,934,309
Tax increment26,583 -26,583 -
Grants and contributions not
restricted to specific programs2,040 -2,0402,040
Unrestricted investment earnings204,42214,046218,468257,543
Gain on sale of capital assets7,950 -7,9508,960
Other revenue29,172 -29,17217,718
Transfers504,239(504,239) - -
Total general revenues
and transfers5,037,389(490,193)4,547,1964,220,570
Change in net position928,653(74,248)854,405703,111
Net position - January 1,
as previously reported26,492,9148,100,46634,593,38033,982,896
Prior period adjustment - - -(92,627)
Net position - January 1, as restated26,492,9148,100,46634,593,38033,890,269
Net position - December 31$27,421,567$8,026,218$35,447,785$34,593,380
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2012
528 G.O. CIP
Refunding Bonds
General Fundof 2012A
Assets
Cash and investments$3,609,138$14,992
Cash with escrow agent -5,179,790
Accrued interest receivable19,6838
Accounts receivable - net12,787 -
Due from other governmental units47,395 -
Prepaid items4,609 -
Taxes receivable:
Delinquent100,357 -
Due from county104,485 -
Special assessments receivable - -
Land held for resale - -
Total assets$3,898,454$5,194,790
Liabilities and Fund Balances
Liabilities:
Accounts payable$118,455$ -
Salaries payable5,342 -
Contracts payable - -
Due to other governmental units1,667 -
Deposits payable3,000 -
Deferred revenue100,357 -
Total liabilities228,8210
Fund balance:
Nonspendable4,609 -
Restricted -5,194,790
Assigned165,000 -
Unassigned3,500,024 -
Total fund balance3,669,6335,194,790
Total liabilities and fund balance$3,898,454$5,194,790
Fund balance reported above
Amounts reported for governmental activities in the statement of net position 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 position of governmental activities
The accompanying notes are an integral part of these financial statements.
Statement 3
710 Renewal and
ReplacementOther
500 Capital 565 Street Capital Project Governmental
Revolving FundReconstructionFundFunds
Total Governmental Funds
20122011
$285,161$2,476,184$4,654,913$5,294,412$16,334,800$15,035,643
- - - - 5,179,790 -
2,06316,34232,36937,111107,576137,555
- - - -12,7879,343
2,465 - -8,09157,95143,272
- - - -4,6092,057
- - - -100,35782,734
- - - -104,48529,000
37,019 - - -37,01955,529
- - -111,000111,000168,518
$326,708$2,492,526$4,687,282$5,450,614$22,050,374$15,563,651
$80,147$ -$2,412$52,490$253,504$94,522
- - - -5,3424,425
- - - - -121,393
- - - -1,6671,093
- - - -3,0004,000
37,019 - -111,000248,376306,781
117,16602,412163,490511,889532,214
- - - -4,6092,057
- - -997,4326,192,2221,033,896
209,5422,492,5264,684,8704,289,69211,841,63010,914,980
- - - - 3,500,0243,080,504
209,5422,492,5264,684,8705,287,12421,538,48515,031,437
$326,708$2,492,526$4,687,282$5,450,614$22,050,374$15,563,651
$21,538,485$15,031,437
17,752,20218,236,436
358,499425,674
(11,875,137)(6,855,000)
(212,177)(226,421)
(125,034)(108,350)
(15,271)(10,862)
$27,421,567$26,492,914
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, 2012
528 G.O. CIP
Refunding Bonds of
General Fund2012A
Revenues:
General property taxes$4,245,360$ -
Tax increment - -
Special assessments - -
Licenses and permits163,986 -
Intergovernmental78,989 -
Charges for services17,528 -
Fines and forfeits55,023 -
Investment income36,7913,507
Refunds and reimbursements140,940 -
Donations and contributions - -
Total revenues4,738,6173,507
Expenditures:
Current:
General government1,138,678 -
Public safety1,379,117 -
Public works459,988 -
Parks and recreation119,955 -
Capital outlay - -
Debt service:
Principal - -
Interest - -
Bond issuance costs -103,854
Total expenditures3,097,738103,854
Revenues over (under) expenditures1,640,879(100,347)
Other financing sources (uses):
Sale of capital assets24,418 -
Issuance of refunding bonds -5,140,000
Bond premium -155,137
Transfers in - -
Transfers out(1,257,225) -
Total other financing sources (uses)(1,232,807)5,295,137
Net change in fund balance408,0725,194,790
Fund balance - January 13,261,561 -
Fund balance - December 31$3,669,633$5,194,790
The accompanying notes are an integral part of these financial statements.
Statement 4
710 Renewal
and Replacement Other
500 Capital 565 Street Capital Project GovernmentalIntra-Activity
Revolving FundReconstructionFundFundsEliminationsTotal Governmental Funds
20122011
$ - $ - $ - $ - $ - $4,245,360$3,984,389
- - - 26,583 - 26,583 -
21,906 - - - - 21,90622,952
- - - - - 163,986131,081
24,000 - - 11,963 - 114,95297,442
- - - 31,913 - 49,441134,237
- - - 1,686 - 56,70960,822
3,85330,51860,44969,304 - 204,422239,763
- - - 13,475 - 154,415132,565
- - - 400 - 40012,500
49,759 30,518 60,449 155,324 0 5,038,174 4,815,751
- - - 56,443 - 1,195,1211,178,710
- - - 15,469 - 1,394,5861,351,567
139,075 - - 137,938 - 737,001605,955
- - - 12,542 - 132,497129,327
- - 2,675158,181 - 160,856767,988
- - - 275,000 - 275,000255,000
- - - 260,680 - 260,680266,675
- - - - - 103,854 -
139,075 0 2,675 916,253 0 4,259,595 4,555,222
(89,316)30,518 57,774 (760,929)0 778,579 260,529
- - - - - 24,41810,010
- - - - - 5,140,000 -
- - - - - 155,137 -
- 329,000248,3051,097,928(1,266,319)408,914412,366
- - - (9,094)1,266,319 - -
0 329,000 248,305 1,088,834 0 5,728,469 422,376
(89,316)359,518 306,079 327,905 0 6,507,048 682,905
298,8582,133,0084,378,7914,959,219 - 15,031,43714,348,532
$209,542$2,492,526$4,684,870$5,287,124$0$21,538,485$15,031,437
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, 2012
20122011
Amounts reported for governmental activities in the
statement of activities are different because:
Net changes in fund balances - total governmental funds (Statement 4)$6,507,048$682,905
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(744,282)(728,429)
Capital outlay160,856767,988
Other various transactions relating to capital assets:
Capital contributions to business-type activities - (432,651)
Transfer of asset from business-type activities95,325 -
Donation of capital assets20,000 -
Book value of capital assets sold, less trade-in value received(16,133) -
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 receivable17,623(50,080)
Change in deferred special assessments receivable(18,510)(18,509)
Change in value of land held for resale(57,518) -
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 payable275,000255,000
Issuance of refunding bonds(5,140,000) -
Bond premium(155,137) -
Some expenses reported in the statement of activities do not require the use
of current financial resources and, therefore, are not reported as expenditures
in governmental funds. Expenses reported in the statement of activities
include the effects of the changes in these expense accruals as follows:
Amortization of issuance costs(8,770)(8,770)
Change in compensated absences payable14,244(6,454)
Change in other post employment benefits(16,684)(31,410)
Change in accrued interest payable(4,409)249
Change in net position of governmental activities (Statement 2)$928,653$429,839
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 6
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2012
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility
Utility FundUtility FundFundTotals
20122011
Assets:
Current assets:
Cash and cash equivalents$524,200$336,518$59,230$919,948$883,290
Accrued interest receivable3,6412,9609217,52210,202
Accounts receivable:
Customers147,446193,06320,925361,434335,338
Certified to County20,38522,0981,81544,29846,756
Due from other governmental units7591,138931,9908,466
Prepaid items - 32,883 - 32,88330,106
Total current assets696,431 588,660 82,984 1,368,075 1,314,158
Noncurrent assets:
Capital assets:
Land937,919 - - 937,919937,919
Buildings and structures2,003,68243,983 - 2,047,6652,047,665
Machinery and equipment421,5556,599 - 428,154402,861
Distribution and collection system3,308,9444,002,485 - 7,311,4297,311,429
Total capital assets6,672,100 4,053,067 0 10,725,167 10,699,874
Less: Allowance for depreciation(2,274,468)(1,704,355) - (3,978,823)(3,735,087)
Net capital assets4,397,6322,348,71206,746,3446,964,787
Total noncurrent assets4,397,6322,348,71206,746,3446,964,787
Total assets5,094,0632,937,37282,9848,114,4198,278,945
Liabilities:
Current liabilities:
Accounts payable15,2062,4788,48726,171117,982
Salaries payable7571,120 - 1,8771,833
Due to other governmental units4,7292,341 - 7,0708,627
Compensated absences payable - current portion1,4378651462,4481,816
Total current liabilities22,129 6,804 8,633 37,566 130,258
Noncurrent liabilities:
Compensated absences payable - noncurrent portion19,20811,5581,95532,72135,564
Other post employment benefits10,0686,5451,30117,91412,657
Noncurrent liabilities29,27618,1033,25650,63548,221
Total liabilities51,40524,90711,88988,201178,479
Net position:
Net investment in capital assets4,397,6322,348,712 - 6,746,3446,964,787
Unrestricted645,026563,75371,0951,279,8741,135,679
Total net position$5,042,658$2,912,465$71,095$8,026,218$8,100,466
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 POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2012
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility
Utility FundUtility FundFund
Totals
20122011
Operating revenues:
Customer billings$699,664$787,675$82,585$1,569,924$1,467,376
Penalties6,0989,90593216,93521,817
Meter sales5,343 - - 5,3431,721
Charges for services1,4151,9932453,6532,139
Refunds and reimbursements2,140708 - 2,8484,616
Total operating revenues714,660 800,281 83,762 1,598,703 1,497,669
Operating expenses:
Personal services194,566125,35021,576341,492335,083
Contractual services93,22989,29916,797199,325199,611
MCES charges - 361,271 - 361,271407,278
Materials and supplies22,2068,3631,70132,27030,953
Administrative and personnel charges - - 3,8303,83069,425
Depreciation160,06484,171 - 244,235223,435
Total operating expenses470,065 668,454 43,904 1,182,423 1,265,785
Operating income244,595 131,827 39,858 416,280 231,884
Nonoperating revenues (expenses):
Earnings on investments6,7995,5271,72014,04617,780
Other - - (95,325)(95,325)4,594
(Loss) on disposal of capital assets(201)(134) - (335)(1,271)
Total nonoperating revenues (expenses)6,5985,393(93,605)(81,614)21,103
Income before contributions and transfers251,193137,220(53,747)334,666252,987
Capital contributions - - - - 432,651
Transfers:
Transfers to other funds(225,538)(177,384)(5,992)(408,914)(412,366)
Total transfers and contributions(225,538)(177,384)(5,992)(408,914)20,285
Change in net position25,655(40,164)(59,739)(74,248)273,272
Net position - January 1, as previously reported5,017,0032,952,629130,8348,100,4667,919,821
Prior period adjustment - - - - (92,627)
Net position - January 1, as restated5,017,0032,952,629130,8348,100,4667,827,194
Net position - December 31$5,042,658$2,912,465$71,095$8,026,218$8,100,466
Transfers
Net
Amounts reported above($408,914)
Amounts reported for business-type activities in the statement of activities are different because:
Transfer of capital assets to governmental activities(95,325)
Amounts reported on the statement of activities($504,239)
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, 2012
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility
Utility FundUtility FundFundTotals
20122011
Cash flows from operating activities:
Receipts from customers and users$702,039$799,970$79,532$1,581,541$1,483,345
Payment to suppliers(129,405)(483,688)(79,748)(692,841)(717,846)
Payment to employees(192,828)(124,255)(21,319)(338,402)(324,984)
Net cash flows provided by (used in) operating activities379,806192,027(21,535)550,298440,515
Cash flows from noncapital financing activities:
Other revenues - - - - 4,594
Transfer to other funds(225,538)(177,384)(5,992)(408,914)(412,366)
Net cash flows provided by (used in)
noncapital financing activities(225,538)(177,384)(5,992)(408,914)(407,772)
Cash flows from capital and related
financing activities:
Acquisition of capital assets(25,590)(537)(95,325)(121,452)(3,874)
Cash flows from investing activities:
Investment income7,5536,5722,60116,72617,771
Net increase (decrease) in cash and cash equivalents136,23120,678(120,251)36,65846,640
Cash and cash equivalents - January 1387,969315,840179,481883,290836,650
Cash and cash equivalents - December 31$524,200 $336,518 $59,230 $919,948 $883,290
Reconciliation of operating income to net
cash provided by operating activities:
Operating income$244,595$131,827$39,858$416,280$231,884
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities:
Depreciation160,06484,171 - 244,235223,435
Prior period adjustment - - - - (92,627)
Changes in assets and liabilities:
Decrease (increase) in receivables(12,621)(311)(4,230)(17,162)(14,324)
Decrease (increase) in prepaid expenses - (2,777) - (2,777)3,834
Increase (decrease) in payables(12,232)(20,883)(57,163)(90,278)88,313
Total adjustments135,211 60,200 (61,393)134,018 208,631
Net cash provided by (used in) operating activities$379,806$192,027($21,535)$550,298$440,515
Noncash investing, capital and financing activities:
Contribution of capital assets from governmental activities$0$0$0$0$432,651
Transfer of capital assets to governmental activities$0$0($95,325)($95,325)$0
The accompanying notes are an integral part of these financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 9
STATEMENT OF FIDUCIARY NET POSITION
AGENCY FUNDS
December 31, 2012
20122011
Assets:
Cash and investments$225,031$238,758
Due from developers5,37717,168
Total assets230,408255,926
Liabilities:
Escrow deposits payable$136,000$146,500
Accounts payable2,8727,502
Due to developers91,536101,924
Total liabilities230,408255,926
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, 2012
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Oak Park Heights, Minnesota operates under the State of Minnesota Statutory Plan A form of
government. The governing body consists of a five member City council elected by voters of the City.
The financial statements of the City of Oak Park Heights, Minnesota have been prepared in conformity with
generally accepted accounting principles as applied to governmental units by the Governmental Accounting
Standards Board (GASB). The following is a summary of the significant accounting policies.
A.FINANCIAL REPORTING ENTITY
As required by generally accepted accounting principles, the financial statements of the reporting entity
include those of the City (the primary government) and its component units, entities which the City is
considered to be financially accountable. Blended component units, although legally separate entities,
are, in substance, part of the City's operations and so data from these units are combined with data of
the primary government.
BLENDED COMPONENT UNIT
The EDA of the City of Oak Park Heights, Minnesota is a separate legal entity. The EDA board
members are substantially the same as the City council in that four of the five board members are
council members and the fifth board member is the City finance director. Separate financial statements
are not prepared by the EDA.
B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the statement of net assets and the statement of changes
in net assets) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent on fees
and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
business-type activity is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or business-type activity. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or business-type activity and 2) grants and contributions that are restricted
to meeting the operational or capital requirements of a particular function or business-type activity.
Taxes and other items not included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns
in the fund financial statements.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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.
TheG.O. CIP Refunding Bonds of 2012A Debt Service Fund is used to account for the
accumulation of resources for debt service payments on the 2012A bonds. The fund also holds
assets which will be used to refund the G.O. Capital Improvement Bonds of 2008 in the year 2016.
TheCapital Revolving Capital Project Fund is used to account for monies set aside for various
capital improvements.
TheStreet Reconstruction Capital Project Fund accounts for the accumulation of funds to be used
for future street reconstruction projects.
TheRenewal and Replacement Capital Project Fund is used to account for assets depreciated from
the utility fund and water and sanitary sewer departments. Funds are used to renew or replace
water and sanitary sewer system assets.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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.
As a general rule the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are transactions that would be treated as revenues,
expenditures or expenses if they involved external organizations, such as buying goods and services or
payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination
of these charges would distort the direct costs and program revenues reported for the various functions
concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of
the enterprise funds are charges to customers for sales and services. Operating expenses for enterprise
funds include the cost of sales and services, administrative expenses, and depreciation on capital assets.
All revenues and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
E.LEGAL COMPLIANCE - BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Administrator submits to the City Council a proposed operating budget for the fiscal
year commencing the following January 1. The operating budget includes proposed
expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmental basis and can
be expended by each department based upon detailed budget estimates for individual
expenditure accounts.
4. The department heads are authorized to transfer appropriations under $500 within any
department budget. Additional interdepartmental or interfund appropriations and deletions are
or may be authorized by the City Council with fund (contingency) reserves or additional
revenues.
5. Formal budgetary integration is employed as a management control device during the year for
the General Fund.
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies
for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to
determine and calculate user charges. These debt service and budget amounts represent
general obligation bond indenture provisions and net income for operation and capital
maintenance and are not reflected in the financial statements.
7. A capital improvement program is reviewed annually by the City Council for the Capital
Project Funds. However, appropriations for major projects are not adopted until the actual bid
award of the improvement. The appropriations are not reflected in the financial statements.
8. Expenditures may not legally exceed budgeted appropriations at the total fund level.
Monitoring of budgets is maintained at the expenditure category level (i.e., personal services;
material and supplies; contractual services; capital outlay) within each department. All
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Investments are stated at fair value, based upon quoted market prices, except for investments in 2a7-like
external investment pools, which are stated at amortized cost and approximate fair value. Investment
income is accrued at the balance sheet date.
For purposes of the statement of cash flows the Enterprise Funds consider all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents. All of the cash and
investments allocated to the Enterprise Funds have original maturities of 90 days or less. Therefore the
entire balance in the fund is considered cash equivalents.
G.RECEIVABLES AND PAYABLES
Property taxes and special assessments (see notes 1H and I) have been reported net of estimated
uncollectible accounts. Because utility bills are considered liens on property, no estimated uncollectible
amounts are established. Uncollectible amounts are not material for other receivables and have not
been reported.
H.PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment
date) of each year for collection in the following year. The County is responsible for billing and
collecting all property taxes for itself, the City, the local School District and other taxing authorities.
Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real
property taxes are payable (by property owners) on May 15 and October 15 of each calendar year.
Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes
are collected by the County and remitted to the City on or before July 7 and December 2 of the same
year. Delinquent collections for November and December are received the following January. The
City has no ability to enforce payment of property taxes by property owners. The County possesses this
authority.
Government-Wide Financial Statements
The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible
property taxes are not material and have not been reported.
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
I.SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of special
assessment improvement projects in accordance with State Statutes. These assessments are collectible
by the City over a term of years usually consistent with the term of the related bond issue. Collection of
annual installments (including interest) is handled by the County Auditor in the same manner as
property taxes. Property owners are allowed to (and often do) prepay future installments without
interest or prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that
property until full payment is made or the amount is determined to be excessive by the City Council or
court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit
sale. Proceeds of sales from tax forfeit properties are allocated first to the County’s costs of
administering all tax forfeit properties. Generally, the City will collect the full amount of its special
assessments not adjusted by City Council or court action. Pursuant to State Statutes, a property shall be
subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal
recreational land in which event the property is subject to such sale after five years.
Government-Wide Financial Statements
The City recognizes special assessment revenue in the period that the assessment roll was adopted by
the City Council. Uncollectible special assessments are not material and have not been reported.
Governmental Fund Financial Statements
Revenue from special assessments is recognized by the City when it becomes measurable and available
to finance expenditures of the current fiscal period. In practice, current and delinquent special
assessments received by the City are recognized as revenue for the current year. All remaining
delinquent and deferred assessments receivable in governmental funds are offset by deferred revenues.
J.INVENTORIES
The original cost of materials and supplies has been recorded as expenditures at the time of purchase.
The City does not maintain material amounts of inventories of goods and supplies.
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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, 2012, no interest was
capitalized in connection with construction in progress.
Property, plant and equipment of the primary government, as well as the component units, are
depreciated using the straight line method over the following estimated useful lives:
Buildings and structures 20 - 50 years
Machinery and equipment 3 – 20 years
Distribution and collection systems 50 years
Streets 25 years
Storm sewers 50 years
Pathways 20 years
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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,
discounts and issuance costs are amortized over the life of the bond.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
O.FUND BALANCE CLASSIFICATIONS
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable - consists of amounts that are not in spendable form, such as prepaid items.
Restricted - consists of amounts related to externally imposed constraints established by creditors,
grantors or contributors; or constraints imposed by state statutory provisions.
Committed - consists of internally imposed constraints. These constraints are established by
Resolution of City Council.
Assigned – consistsof internally imposed constraints for the specific purpose of the City’s intended
use. Pursuant to the City’s Fund Balance Policy, the Finance Director and/or City Administrator
have been authorized to assign fund balance that reflects the City’s intended use of those funds.
Unassigned – is the residual classification for the general fund and also reflects negative residual
amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the City’s policy to first use
restricted resources, and then use unrestricted resources as they are needed.
When committed, assigned or unassigned resources are available for use, it is the City’s policy to use
resources in the following order; 1) committed 2) assigned and 3) unassigned.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
P.INTERFUND TRANSACTIONS
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it
that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing
fund and as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are
reported as an interfund loan receivable or payable which offsets the movement of cash between funds.
All other interfund transactions are reported as transfers.
Q.RECLASSIFICATIONS
Certain amounts presented in the prior year data have been reclassified in order to be consistent with the
current year’s presentation.
R.USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted accounting principles
(GAAP) requires management to make estimates that affect amounts reported in the financial
statements during the reporting period. Actual results could differ from such estimates.
S.COMPARATIVE TOTALS
The basic financial statements and combining and individual fund financial statements include certain
prior-year summarized comparative information in total but not at the level of detail required for a
presentation in conformity with generally accepted accounting principles. Accordingly, such
information should be read in conjunction with the City’s financial statements for the year ended
December 31, 2011, from which the summarized information was derived.
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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, 2012 the carrying amount of the City’s deposits with financial institutions was
$8,534,343.
Custodial credit risk – Deposits. Custodial credit risk is the risk that in the event of a bank failure, the
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, 2012, the bank balance of the City’s deposits was
$8,631,256, all of which was either insured by the Federal Deposit Insurance Corporation (FDIC) or
covered by perfected pledged collateral held in the City’s name.
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;
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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.
As of December 31, 2012 the City had the following investments and maturities:
Investment Maturities (in Years)
FairLess
Investment TypeRatingValueThan 11-56-10
Federal National Mortgage Assn. NotesAaa$5,179,790$ - $5,179,790$ -
Federal Home Loan Mortgage Corp. NotesAaa1,248,74998,249 - 1,150,500
Federal Home Loan Bank NotesAaa2,369,996 - - 2,369,996
Brokered certificates of depositNR4,827,0003,097,0001,485,000245,000
External investment pool - 4M FundNR499,591499,591 - -
Total$14,125,126$3,694,840$6,664,790$3,765,496
NR - Not RatedTotal investments$14,125,126
Deposits8,534,343
Petty cash100
Total cash and investments$22,659,569
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Following is a reconciliation of the City’s cash and investment balances as of December 31, 2012:
Cash and investments:
Governmental and business-type (Statement 1)$17,254,748
Fiduciary (Statement 9)225,031
Cash with escrow agent5,179,790
Total cash and investments$22,659,569
C. INVESTMENT RISKS
Custodial credit risk – investments – For investments in securities, custodial credit risk is the risk that in
the event of failure of the counterparty to a transaction, the City will not be able to recover the value of
its investment securities that are in the possession of an outside party. Investments in investment pools
and money markets are not evidenced by securities that exist in physical or book entry form, and
therefore are not subject to custodial credit risk disclosures. The City’s investment policy does not
address custodial risk. However, investments in securities are held by the City’s broker-dealer of which
$2,000,000 is insured through SIPC. Each broker-dealer has provided additional protection by
providing additional insurance. This insurance is subject to aggregate limits applied to all of the
broker-dealer’s accounts.
Interest rate risk – Interest rate risk is the risk that changes in interest rates of debt investments could
adversely affect the fair value of an investment. The City’s investment policy requires the City to
diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of assets
in a specific maturity. The policy also states the City’s investment portfolio will remain sufficiently
liquid to enable the City to meet all operating requirements which might be reasonably anticipated.
Credit Risk – Credit risk is the risk that an issuer or other counterparty to an investment will be unable
to fulfill its obligation to the holder of the investment. Minnesota Statutes limit the City’s investments
to direct obligations or obligations under the Federal Investment Company Act of 1940 that receive the
highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency,
and all of the investments have a final maturity of thirteen months or less; shares of a Minnesota joint
powers investment trust whose investments are restricted to securities described in 118.04; general
obligations of any state or local government with taxing powers which is rated “A” or better; revenue
obligations of any state or local government with taxing powers which is rated “AA” or better; general
obligations of the Minnesota Housing Finance Agency rated “A” or better; bankers’ acceptances of
United States banks eligible for purchase by the Federal Reserve System; commercial paper issued by
United States corporations or their Canadian subsidiaries, rated of the highest quality category by at
least two nationally recognized rating agencies, and maturing in 270 days or less; guaranteed
investment contracts guaranteed by a United States commercial bank, domestic branch of a foreign
bank or a United States insurance company, and with the credit quality in the one of the top two highest
categories; repurchase or reverse purchase agreements and securities lending agreements with financial
institutions qualified as a “depository” by the government entity, with banks that are members of the
Federal Reserve System with capitalization exceeding $10,000,000, that are a primary reporting dealer
in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
securities brokers-dealers. The City’s investment policy does not place further restrictions on
investment options.
Concentration of credit risk – Concentration of credit risk is the risk of loss that may be attributed to the
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. As of December 31, 2012, more than 5% of the City’s cash and
investments are in the following governmental agencies: Federal National Mortgage Association
(23%), Federal Home Loan Bank (10%) and Federal Home Loan Mortgage Corporation (6%).
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2012 are as
follows:
Capital
Revolving
GeneralFundTotal
Delinquent property taxes$48,808$ - $48,808
Deferred special assessments - 18,50918,509
Total$48,808$18,509$67,317
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)$100,357$ -
Special assessments receivable (Capital Revolving Fund)37,019 -
Land held for resale (Nonmajor Fund)111,000 -
Total deferred/unearned revenue for governmental funds$248,376$0
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 4 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2012 was as follows:
BeginningEnding
BalanceIncreasesDecreasesBalance
Governmental activities:
Capital assets, not being depreciated:
Land$2,238,930$ - $ - $2,238,930
Construction in progress - 2,675 - 2,675
Total capital assets, not being depreciated2,238,9302,67502,241,605
Capital assets, being depreciated:
Buildings and structures7,547,263 - (7,013)7,540,250
Other improvements1,523,1596,400 - 1,529,559
Machinery and equipment550,250185,016(153,622)581,644
Furniture and fixtures419,862 - - 419,862
Infrastructure12,811,94695,325 - 12,907,271
Total capital assets, being depreciated22,852,480286,741(160,635)22,978,586
Less accumulated depreciation for:
Buildings and structures294,694180,456(7,013)468,137
Other improvements219,80847,258 - 267,066
Machinery and equipment328,40957,682(124,254)261,837
Furniture and fixtures144,65737,332 - 181,989
Infrastructure5,867,406421,554 - 6,288,960
Total accumulated depreciation6,854,974744,282(131,267)7,467,989
Total capital assets being depreciated - net15,997,506(457,541)(29,368)15,510,597
Governmental activities capital assets - net$18,236,436($454,866)($29,368)$17,752,202
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
BeginningEnding
BalanceIncreasesDecreasesBalance
Business-type activities:
Capital assets, not being depreciated:
Land$937,919$ - $ - $937,919
Total capital assets, not being depreciated937,91900937,919
Capital assets, being depreciated:
Buildings and structures2,047,665 - - 2,047,665
Machinery and equipment402,86126,127(834)428,154
Infrastructure7,311,429 - - 7,311,429
Total capital assets, being depreciated9,761,95526,127(834)9,787,248
Less accumulated depreciation for:
Buildings and structures656,27076,890 - 733,160
Machinery and equipment187,90619,722(499)207,129
Infrastructure2,890,911147,623 - 3,038,534
Less accumulated depreciation3,735,087244,235(499)3,978,823
Total capital assets being depreciated - net6,026,868(218,108)(335)5,808,425
Business-type activities capital assets - net$6,964,787($218,108)($335)$6,746,344
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government$202,664
Public safety34,376
Public works390,836
Recreation116,406
Total depreciation expense - governmental activities$744,282
Business-type activities:
Water$160,064
Sewer84,171
Total depreciation expense - business-type activities$244,235
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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, 2012, the long-term debt of the financial reporting entity consisted of the following:
FinalAuthorized
Issue Maturity Interest AndOutstanding
DateDateRateIssued12/31/12
Governmental activities:
Improvement bonds:
G.O. Capital Improvement Bonds, Series 2008A06/15/0812/15/282.5 - 4.4$6,300,000$5,690,000
G.O. Capital Improvement Bonds, Series 2009A09/15/0912/15/191.2 - 3.551,195,000890,000
G.O. CIP Refunding Bonds, Series 2012A12/01/1212/15/282.0 - 2.155,140,0005,140,000
Bond premium155,137155,137
Compensated absences payable212,177
Total governmental activities12,087,314
Business-type activities:
Compensated absences payable35,169
Total City indebtedness$12,122,483
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Annual debt service requirements to maturity are as follows:
YearGovernmental Activities
Ending2008A G.O. Cap Imp Bonds2012A G.O. CIP Ref. Bonds2009A G.O. Cap Imp BondsTotal
December 31,PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest
2013$185,000$227,845$ - $108,831$110,000$25,760$295,000$362,436
2014200,000222,018 - 104,758115,00023,560315,000350,336
2015215,000215,418 - 104,758120,00020,858335,000341,034
20165,090,000208,000 - 104,758125,00017,6785,215,000330,436
2017 - - 305,000104,758130,00014,115435,000118,873
2018 - - 320,00098,658140,00010,084460,000108,742
2019 - - 340,00092,258150,0005,325490,00097,583
2020 - - 360,00085,458 - - 360,00085,458
2021 - - 380,00078,258 - - 380,00078,258
2022 - - 400,00070,658 - - 400,00070,658
2023 - - 430,00062,658 - - 430,00062,658
2024 - - 455,00054,058 - - 455,00054,058
2025 - - 495,00044,958 - - 495,00044,958
2026 - - 525,00035,058 - - 525,00035,058
2027 - - 545,00024,295 - - 545,00024,295
2028 - - 585,00012,578 - - 585,00012,578
Total$5,690,000$873,281$5,140,000$1,186,758$890,000$117,380$11,720,000$2,177,419
It is not practicable to determine the specific year for payment of accrued compensated absences.
Change in Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2012, was as follows:
BalanceBalanceDue Within
01/01/12AdditionsReductions12/31/12One Year
Governmental Activities:
Bonded debt:
Improvement bonds$6,855,000$ - ($275,000)$6,580,000$295,000
CIP refunding bonds - 5,140,000 - 5,140,000 -
Bond premium - 155,137 - 155,1379,696
Compensated absences226,42179,905(94,149)212,17714,769
Total governmental activities$7,081,421$5,375,042($369,149)$12,087,314$319,465
Business-Type Activities:
Compensated absences$37,380$15,585($17,796)$35,169$2,448
Total business-type activities$37,380$15,585($17,796)$35,169$2,448
For governmental activities, compensated absences are generally liquidated by the General Fund. All long-
term bonded indebtedness outstanding at December 31, 2012 is backed by the full faith and credit of the
City, including improvement bond issues. Delinquent taxes receivable at December 31, 2012 were
$100,357.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Crossover Refunding – 2012A Bonds
On December 1, 2012, the City issued $5,140,000 in General Obligation Capital Improvement Plan
Crossover Refunding Bonds, Series 2012A with interest rates between 2.00% and 2.15% to advance refund
$4,860,000 of outstanding 2008A General Obligation Capital Improvement Bonds with interest rates
between 3.70% and 4.40%. The net proceeds were used to purchase U.S. government securities in the
amount of $5,179,790. Those securities were deposited in an irrevocable trust with an escrow agent to
provide for the interest on the refunding bonds before the crossover date and called principal on the
refunded bonds on December 15, 2016.
The City advance refunded the 2008A General Obligation Capital Improvement Bonds to reduce its total
debt service payments during the years 2013 through 2028 by $481,745 and to obtain an economic gain
(difference between the present value of the debt service payments on the old and new debt) of $404,263.
The City is responsible for the debt service of the refunded bonds through the crossover date (December 15,
2016) and the debt service of the refunding bonds after the crossover date. The debt service of the
refunding bonds before the crossover date is payable from the escrow account. Assets held with the escrow
agent total $5,179,790 at December 31, 2012.
The financial statements present each bond issue and the escrow account assets pursuant to GASB No. 7.
The effect on the financial statements is to report greater debt than, in substance, the City will be responsible
for paying.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
The Refunding Bonds of 2012A are crossover refunding bonds whereby the City and the escrow agent are
responsible for the debt service payments as follows:
Debt Service Commitment
Year EndingRefundedRefundingEscrow
December 31,Bonds TotalBonds TotalAccountCity
2013$412,845$108,831$108,831$412,845
2014422,018104,758104,758422,018
2015430,418104,758104,758430,418
20165,298,000104,7584,964,758438,000
2017 - 409,758 - 409,758
2018 - 418,658 - 418,658
2019 - 432,258 - 432,258
2020 - 445,458 - 445,458
2021 - 458,258 - 458,258
2022 - 470,658 - 470,658
2023 - 492,658 - 492,658
2024 - 509,058 - 509,058
2025 - 539,958 - 539,958
2026 - 560,058 - 560,058
2027 - 569,295 - 569,295
2028 - 597,578 - 597,578
Total$6,563,281$6,326,758$5,283,105$7,606,934
Revenues Pledged
Revenue PledgedCurrent Year
Percent ofRemainingPrincipalPledged
Use ofTotalTerm ofPrincipaland InterestRevenue
Bond IssueProceedsTypeDebt ServicePledgeand InterestPaidReceived
2008ACity hall constructionProperty taxes100%2009 - 2028$6,563,281$403,030$400,000
2009ACity hall constructionProperty taxes100%2010 - 2019$1,007,380$132,650$136,000
The City will begin making payments on the 2012A Bonds in 2017. Beginning then, the property taxes
pledged for the 2008A Bonds will be applied to the 2012A Bonds, as the 2008A Bonds will have been
refunded.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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.
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
www.mnpera.org, by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by
calling 651-296-7460 or 1-800-652-9026.
FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes
are established and amended by the state legislature. The City makes annual contributions to the
pension plans equal to the amount required by state statutes. GERF Basic Plan members and
Coordinated Plan members were required to contribute 9.10% and 6.25%, respectively, of their annual
covered salary in 2012. PEPFF members were required to contribute 9.6% of their annual covered
salary in 2012. The City was required to contribute the following percentages of annual covered
payroll in 2012: 11.78% for Basic Plan members, 7.25% for Coordinated Plan members, and 14.4% for
PEPFF members. The City’s contributions to the General Employees Retirement Fund for the years
ending December 31, 2012, 2011 and 2010 were $52,387, $52,289 and $50,534, respectively. The
City’s contributions to the Public Employees Police and Fire Fund for the years ending December 31,
2012, 2011 and 2010 were $108,683, $106,220 and $99,847, respectively. The City’s contributions
were equal to the contractually required contributions for each year as set by state statute.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
B. DEFINED CONTRIBUTION PLAN
The City administrator does not participate in PERA, but is covered by a defined contribution plan
administered by the ICMA Retirement Corporation. The Plan is a tax qualified plan under Section 457
of the Internal Revenue Code and all contributions by or on behalf of the employee are tax deferred
until time of withdrawal.
The City is required to contribute 10% of the annual base salary. Plan provisions and contribution
requirements are established and may be amended by the City council. Employer contributions were
$10,829 for the year ended December 31, 2012.
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, 2012
C. PARTICIPANTS
As of the January 1, 2012 actuarial valuation, participants consisted of:
Retirees and beneficiaries currently
purchasing health insurance through the City2
Active employees19
Total21
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, 2012, was calculated as follows:
Annual required contribution (ARC)$33,841
Interest on net OPEB obligation4,840
Adjustment to ARC(6,998)
Annual OPEB cost31,683
Contributions made during the year(9,742)
Increase in net OPEB obligation21,941
Net OPEB obligation - beginning of year121,007
Net OPEB obligation - end of year$142,948
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
The net OPEB obligation is allocated as follows:
Governmental activities$125,034
Business-type activities17,914
$142,948
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 the previous three years was as follows:
Percentage of
Fiscal YearAnnual OPEBEmployer Annual OPEB CostNet OPEB
EndedCostContributionsContributedObligation
December 31, 2010$59,301$17,07128.8%$85,636
December 31, 2011$58,548$23,17739.6%$121,007
December 31, 2012$31,683$9,74230.7%$142,948
F. FUNDED STATUS AND FUNDING PROGRESS
The City currently has no assets that have been irrevocably deposited in a trust for future health
benefits; therefore, the actuarial value of assets is zero. The funded status of the plan as of the most
recent actuarial valuation date was as follows:
Unfunded
ActuarialActuarialUAAL as a
ActuarialActuarialAccruedAccruedFundedCoveredPercentage of
ValuationValue of AssetsLiability (AAL)*Liability (UAAL)RatioPayrollCovered Payroll
Date(a)(b)(b-a)(a/b)(c) ( (b-a) / c)
January 1, 2012$0$290,381$290,3810.0%$1,648,74817.6%
*Using the Projected Unit Credit Actuarial cost method.
G. ACTUARIAL METHODS AND ASSUMPTIONS
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality and the health care cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions (ARC) of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates are
made about the future. The schedule of funding progress, presented as required supplementary
information following the notes to financial statements, presents multi-year trend information that
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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, 2012 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),
an inflation rate of 3.0% and an initial annual health care cost trend rate of 9% reduced by 0.4% 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 amortized as a level dollar amount over a 30 year
open period. The remaining amortization period at December 31, 2012, was 27 years.
Note 8 INTERFUND TRANSFERS
Transfers In
Major Funds
Renewal and Nonmajor
StreetReplacement Governmental
ReconstructionFund FundsTotal
Transfers out:
Governmental activities:
General Fund$329,000$ - $928,225$1,257,225
Nonmajor Governmental Funds - - 9,0949,094
Business-type activities:
Water Utility Fund - 110,309115,229225,538
Sewer Utility Fund - 137,99639,388177,384
Storm Sewer Utility Fund - - 5,9925,992
Total transfers$329,000$248,305$1,097,928$1,675,233
During 2012, the City made routine interfund transfers to accumulate resources to be used for capital
improvements and to fund debt service expenditures. Also, the Storm Sewer Utility Fund made an additional
transfer of capital assets to governmental activities in the amount of $95,325, which is not reflected in the
schedule above.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 9 CONTINGENCIES AND COMMITMENTS
A.ST. CROIX RIVER CROSSING PROJECT
During 2012 the State of Minnesota and Minnesota Department of Transportation (MNDOT) finalized
plans and received federal approval to construct an interstate bridge connecting Highway 36 in Oak
Park Heights and Houlton, Wisconsin. As a direct result of the MNDOT project, the City was obligated
to commit to relocate portions of its water, sewer and storm utility infrastructure along Highway 36.
The majority of these improvements will be constructed by MNDOT. The City has entered into
agreements with the parties for the portion of the improvements considered to be betterments to the
present utility systems. The estimated cost to the City for these improvements is $500,000, and is
expected to be incurred over the next five years depending on the final timing to be determined by
MNDOT and their contractors.
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, 2012.
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.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Employee health and disability insurance is provided through commercial insurance. The City does not have a
deductible or yearly maximum on this insurance.
There were no significant reductions in insurance from the previous year or settlements in excess of insurance
coverage for any of the past three fiscal years.
Note 11 FUND BALANCE
A.CLASSIFICATIONS
Definitions of fund balance classifications are included in Note 1.O. At December 31, 2012, a
summary of the governmental fund balance classifications are as follows:
G.O. CIP
RefundingCapitalRenewal andOther
Bonds ofStreetRevolvingReplacementGovernmental
General Fund2012AReconstructionFundFundFundsTotal
Nonspendable:
Prepaid items$4,609$ - $ - $ - $ - $ - $4,609
Restricted for:
Law enforcement - - - - - 6,9236,923
Tax increment - - - - - 4,6044,604
Debt service - 5,194,790 - - - 115,0415,309,831
Park improvements - - - - - 311,502311,502
Moelter Park improvements - - - - - 559,362559,362
Total restricted05,194,790000997,4326,192,222
Assigned for:
Compensated absences165,000 - - - - - 165,000
Capital purposes - - - 209,5424,684,8704,258,0659,152,477
Street reconstruction - - 2,492,526 - - - 2,492,526
Economic development - - - - - 31,62731,627
Total assigned165,00002,492,526209,5424,684,8704,289,69211,841,630
Unassigned3,500,024 - - - - - 3,500,024
Total$3,669,633$5,194,790$2,492,526$209,542$4,684,870$5,287,124$21,538,485
B.MINIMUM UNASSIGNED FUND BALANCE POLICY
The City Council has formally adopted a policy regarding the minimum unassigned fund balance for the
General Fund. The most significant revenue source of the General Fund is property taxes. This
revenue source is received in two installments during the year – June and December. As such, it is the
City’s goal to begin each fiscal year with sufficient working capital to fund operations between each
semi-annual receipt of property taxes.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
The policy states the City will maintain an unassigned fund balance in the General Fund for the
following purposes and in the following amounts:
For cash flow needs – an amount should be established equal to 45-55% of the subsequent
year’s budgeted operating expenditures.
For emergencies or contingencies (such as revenue shortfalls or unexpected budget over runs)
– an amount should be established equal to 10 – 15% of the ensuing year’s General Fund
operating expenditures.
At December 31, 2012, the unassigned fund balance of the General Fund was $3,500,024, which
sufficiently meets the cash flow and emergency needs described above.
Note 12 MAJOR TAXPAYER
The City has one major taxpayer, Xcel Energy. The total tax capacity value for this taxpayer represented
approximately 38% of the City's total tax capacity value for taxes payable in 2012.
Note 13 TAX INCREMENT DISTRICT
The City is the administrating authority for Tax Increment District 1-1 (Oakgreen Project). During 2010, the
City and the developer signed a $1,200,000 tax increment pay-as-you-go revenue note relating to this district.
The note is not a general obligation of the City and is payable solely from available tax increments.
Accordingly, the note is not reflected in the financial statements of the City. A summary of the note is as
follows:
Tax Increment Revenue Note, TIF 1-1 – issued in 2010 in the principal sum of $1,200,000 with an interest rate
of 6.90% per annum. Principal and interest payments shall be payable on each February 1 and August 1
following the date of the note to and including February 1, 2026. Payments are payable solely from available tax
increment, which shall mean 80% of the tax increment derived from the development property and received by
the City. The City shall have no obligation to pay unpaid balance of principal or accrued interest that may
remain after the final payment on February 1, 2026. At December 31, 2012 the principal amount outstanding on
the note was $1,200,000.
Note 14 CONDUIT DEBT OBLIGATIONS
From time to time, the City has issued Rental Housing or Industrial Revenue Bonds to provide financial
assistance to private-sector entities for the acquisition and construction of rental housing, office space or a clinic
deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from
payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired
facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any
political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are
not reported as liabilities in the accompanying financial statements.
As of December 31, 2012, there were three series of Industrial Revenue Bonds outstanding. The principal
amount payable at December 31, 2012 was $88,882,487.
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 15 OPERATING LEASES
The City leases space in and above its water tower. The space is used for antennas and other equipment necessary to
provide radio communications. Lease terms are as follows:
2012
LeaseAnnual LeaseExpirationRenewal
LocationLesseeAmountAdjustment Factor*DateOptions
58th and NorrellSprint PCS$31,913Greater 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
REQUIRED SUPPLEMENTARY INFORMATIONStatement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUNDPage 1 of 4
For The Year Ended December 31, 2012
With Comparative Actual Amounts For The Year Ended December 31, 2011
Variance
with Final
Budget -
2012 Actual Positive2011 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Revenues:
Property taxes$4,228,062$4,228,062$4,179,856($48,206)$3,523,673
Payment in lieu of taxes59,00059,00065,5046,50459,814
Total property taxes4,287,0624,287,0624,245,360(41,702)3,583,487
Intergovernmental:
PERA aid2,0402,0402,040 - 2,040
Police aid50,00050,00061,24211,24263,278
Recycling grant7,0007,0009,3122,31211,612
Safe and Sober grant11,00011,0006,395(4,605)9,970
Other general government grants - - - - 4,000
Other public works grants - - - - 6,542
Total intergovernmental70,04070,04078,9898,94997,442
Licenses and permits83,40083,400163,98680,586131,081
Charges for services:
General government14,85214,85213,698(1,154)18,127
Administrative - Enterprise Fund3,8303,8303,830 - 69,425
Total charges for services18,68218,68217,528(1,154)87,552
Fines and forfeits50,50050,50055,0234,52357,862
Investment income40,00040,00036,791(3,209)41,378
Refunds and reimbursements105,000105,000140,94035,940129,313
Total revenues4,654,6844,654,6844,738,61783,9334,128,115
Expenditures:
General government:
Mayor and city council:
Current:
Personal services59,82059,82057,1412,67957,408
Materials and supplies500500161339177
Other services and charges32,61532,61526,8945,72122,574
Total mayor and city council92,93592,93584,1968,73980,159
City administration:
Current:
Personal services198,220198,220178,68919,531194,542
Materials and supplies2,850$2,8501,2101,6401,626
Other services and charges46,66846,66837,6968,97241,060
Total City administration247,738247,738217,59530,143237,228
Legal:
Current:
Personal services30,00030,00015,08714,91315,724
General management and building:
Current:
Materials and supplies8,2008,2004,2703,9307,282
Other services and charges119,475119,475114,6954,780125,705
Total general management and building127,675127,675118,9658,710132,987
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATIONStatement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUNDPage 2 of 4
For The Year Ended December 31, 2012
With Comparative Actual Amounts For The Year Ended December 31, 2011
Variance
with Final
Budget -
2012 Actual Positive2011 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Expenditures: (continued)
General government: (continued)
Elections:
Current:
Personal services$9,000$9,000$6,047$2,953$1,928
Materials and supplies1,5001,5004491,051169
Other services and charges1,2401,240979261982
Total elections11,74011,7407,4754,2653,079
Finance:
Current:
Personal services212,924212,924207,2135,711195,473
Materials and supplies3,6003,6002,5921,0082,805
Other services and charges42,75142,75136,1176,63432,974
Total finance259,275259,275245,92213,353231,252
Computer system:
Current:
Materials and supplies2,9002,9001,5041,3962,100
Other services and charges28,60028,60019,6848,91621,100
Total computer system31,50031,50021,18810,31223,200
Audit:
Current:
Personal services27,50027,50032,647(5,147)27,500
Insurance:
Current:
Other services and charges349,761349,761330,51519,246337,018
Assessing:
Current:
Personal services22,70022,70021,6271,07321,644
Planning and zoning:
Current:
Personal services34,00034,00022,32011,68025,125
Materials and supplies200200300(100)314
Other services and charges1,8001,800825975775
Total planning and zoning36,00036,00023,44512,55526,214
Engineering:
Current:
Other services and charges27,00027,00011,77115,22913,599
General contingency:
Current:
Other services and charges10,00010,0008,2451,7551,291
Total general government1,273,8241,273,8241,138,678135,1461,150,895
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATIONStatement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUNDPage 3 of 4
For The Year Ended December 31, 2012
With Comparative Actual Amounts For The Year Ended December 31, 2011
Variance
with Final
Budget -
2012 Actual Positive2011 Actual
Amounts(Negative)Amounts
Budgeted Amounts
Expenditures: (continued)OriginalFinal
Public safety: (continued)
Police department:
Current:
Personal services$923,530$923,530$886,600$36,930$843,275
Materials and supplies59,07559,07542,38716,68839,825
Other services and charges182,284182,284174,9337,351162,320
Total police department1,164,8891,164,8891,103,92060,9691,045,420
Building inspections:
Current:
Personal services110,137110,13788,16221,975107,362
Materials and supplies1,8001,8001,150650897
Other services and charges20,03830,03823,7576,28117,684
Total building inspections131,975141,975113,06928,906125,943
Fire protection:
Current:
Materials and supplies2,0002,0002,000 - -
Other services and charges158,380158,380158,380 - 153,336
Total fire protection160,380160,380160,3800153,336
Civil defense:
Current:
Other services and charges5,0505,050854,96590
Animal control:
Current:
Materials and supplies150150727845
Other services and charges1,4851,4851,591(106)1,097
Total animal control1,6351,6351,663(28)1,142
Total public safety1,463,9291,473,9291,379,11794,8121,325,931
Public works:
Street maintenance:
Current:
Personal services22,59422,59420,9991,59519,851
Materials and supplies12,15012,15010,9371,21311,504
Other services and charges29,14129,14128,73141019,033
Total street maintenance63,88563,88560,6673,21850,388
Snow removal:
Current:
Materials and supplies1,0001,000643357958
Other services and charges128,000128,00094,51933,48193,518
Total snow removal129,000129,00095,16233,83894,476
Sanitation:
Current:
Other services and charges197,800197,800194,7033,097194,610
Street lighting:
Current:
Other services and charges68,70068,70062,9935,70766,074
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATIONStatement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUNDPage 4 of 4
For The Year Ended December 31, 2012
With Comparative Actual Amounts For The Year Ended December 31, 2011
Variance
with Final
Budget -
2012 Actual Positive2011 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Expenditures: (continued)
Public works: (continued)
Arborist:
Current:
Personal services$14,500$14,500$13,200$1,300$14,825
Materials and supplies100100 - 100 -
Other services and charges250250150100150
Total arborist14,85014,85013,3501,50014,975
Tree removal and planting:
Current:
Other services and charges35,00035,00033,1131,88724,997
Total public works509,235509,235459,98849,247445,520
Parks and recreation:
Parks, playgrounds and rinks:
Current:
Personal services50,16950,16947,3152,85449,232
Materials and supplies17,10017,10019,421(2,321)11,861
Other services and charges83,20283,20253,21929,98352,699
Capital outlay - - - - 1,983
Total parks and recreation150,471150,471119,95530,516115,775
Total expenditures3,397,4593,407,4593,097,738309,7213,038,121
Revenues over expenditures
1,257,2251,247,2251,640,879393,6541,089,994
Other financing sources (uses):
Sale of property - - 24,41824,41810,010
Transfers out(1,257,225)(1,257,225)(1,257,225) - (812,240)
Total other financing sources (uses)(1,257,225)(1,257,225)(1,232,807)24,418(802,230)
Net change in fund balance$0($10,000)408,072$418,072287,764
Fund balance - January 1 3,261,5612,973,797
Fund balance - December 31$3,669,633$3,261,561
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS - RETIREE HEALTH PLAN
For The Year Ended December 31, 2012
UnfundedUAAL As A
ActuarialActuarialActuarialPercentage of
ActuarialValue ofAccruedLiabilityFundedCoveredCovered
ValuationAssetsLiability (AAL)*(UAAL)RatioPayrollPayroll
Date(a)(b)(b-a)(a/b)(c)( (b-a) / c)
January 1, 2012$0$290,381$290,3810.0%$1,648,74817.6%
January 1, 2009$0$452,765$452,7650.0%$1,600,00028.3%
*Using the Projected Unit Credit Actuarial cost method.
The first OPEB actuarial valuation was conducted as of January 1, 2009. There is no data available
prior to the first valuation.
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2012
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.
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COMBINING AND INDIVIDUAL NONMAJOR
FUND FINANCIAL STATEMENTS
- This page intentionally left blank -
NONMAJOR GOVERNMENTAL FUNDS
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 11
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2012
With Comparative Totals For December 31, 2011
Totals
Nonmajor
SpecialDebtCapitalGovernmental Funds
AssetsRevenueServiceProject20122011
Cash and investments$53,491$113,890$5,127,031$5,294,412$5,034,291
Accrued interest receivable2971,15135,66337,11150,735
Accounts receivable - net - - - - 3,252
Due from other governmental units - - 8,0918,091 -
Taxes receivable:
Due from county - - - - 2,712
Land held for resale111,000 - - 111,000168,518
Total assets$164,788$115,041$5,170,785$5,450,614$5,259,508
Liabilities and Fund Balance
Liabilities:
Accounts payable$10,634$ - $41,856$52,490$10,378
Contracts payable - - - - 121,393
Deferred revenue111,000 - - 111,000168,518
Total liabilities121,634041,856163,490300,289
Fund balance:
Restricted11,527115,041870,864997,4321,033,896
Assigned31,627 - 4,258,0654,289,6923,925,323
Total fund balance43,154115,0415,128,9295,287,1244,959,219
Total liabilities and fund balance$164,788$115,041$5,170,785$5,450,614$5,259,508
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 12
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2012
With Comparative Totals For The Year Ended December 31, 2011
Totals
Special DebtCapitalNonmajor Governmental Funds
RevenueServiceProject20122011
Revenues:
General property taxes$ - $ - $ - $ - $400,902
Tax increment26,583 - - 26,583 -
Intergovernmental - - 11,96311,963 -
Charges for services - - 31,91331,91346,685
Fines and forfeits1,686 - - 1,6862,960
Investment income5552,15066,59969,30488,428
Refunds and reimbursements - - 13,47513,4753,252
Donations and contributions - - 40040012,500
Total revenues28,824 2,150 124,350 155,324 554,727
Expenditures:
Current:
General government22,007 - 34,43656,44327,815
Public safety3,016 - 12,45315,46925,636
Public works - - 137,938137,938136,422
Parks and recreation - - 12,54212,54215,535
Capital outlay - - 158,181158,181766,005
Debt service:
Principal - 275,000 - 275,000255,000
Interest - 260,680 - 260,680266,675
Total expenditures25,023 535,680 355,550 916,253 1,493,088
Revenues over (under) expenditures3,801 (533,530)(231,200)(760,929)(938,361)
Other financing sources (uses):
Transfers in - 536,000561,9281,097,928741,798
Transfers in - - (9,094)(9,094)(21,450)
Total other financing sources (uses)0 536,000 552,834 1,088,834 720,348
Net change in fund balance3,801 2,470 321,634 327,905 (218,013)
Fund balance - January 139,353112,5714,807,2954,959,2195,177,232
Fund balance - December 31$43,154$115,041$5,128,929$5,287,124$4,959,219
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 13
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With Comparative Totals For December 31, 2011
202 Forfeiture 204 Economic 205 TIF
Totals Nonmajor Special
and SeizureDevelopmentDistrict #1
Revenue Funds
Assets20122011
Cash and investments$6,871$31,397$15,223$53,491$38,884
Accrued interest receivable5223015297627
Land held for resale - 111,000 - 111,000168,518
Total assets$6,923$142,627$15,238$164,788$208,029
Liabilities and Fund Balance
Liabilities:
Accounts payable$ - $ - $10,634$10,634$158
Deferred revenue - 111,000 - 111,000168,518
Total liabilities0111,00010,634121,634168,676
Fund balance:
Restricted6,923 - 4,60411,5278,155
Assigned - 31,627 - 31,62731,198
Total fund balance6,92331,6274,60443,15439,353
Total liabilities and fund balance$6,923$142,627$15,238$164,788$208,029
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 14
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2012
With Comparative Totals For The Year Ended December 31, 2011
202 Forfeiture 204 Economic 205 TIF Totals Nonmajor Special
and SeizureDevelopmentDistrict #1Revenue Funds
20122011
Revenues:
Tax increment$ - $ - $26,583$26,583$ -
Confiscated property1,686 - - 1,6862,960
Investment income98429285551,093
Total revenues1,784429 26,611 28,824 4,053
Expenditures:
Current:
General government - - 22,00722,0073,831
Public safety3,016 - - 3,01617,733
Capital outlay - - - - 31,607
Total expenditures3,016 0 22,007 25,023 53,171
Revenues over (under) expenditures(1,232)429 4,604 3,801 (49,118)
Fund balance - January 18,15531,198 - 39,35388,471
Fund balance - December 31$6,923$31,627$4,604$43,154$39,353
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 15
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2012
With Comparative Totals For December 31, 2011
526 G.O. 527 G.O.
CapitalCapital
ImprovementImprovement
Bonds of 2008Bonds of 2009Total Nonmajor Debt Service Funds
20122011
Assets
Cash and investments$97,263$16,627$113,890$108,685
Accrued interest receivable9052461,1511,174
Taxes receivable:
Due from county - - - 2,712
Total assets$98,168 $16,873 $115,041 $112,571
Liabilities and Fund Balance
Liabilities$ - $ - $ - $ -
Fund balance:
Restricted98,16816,873115,041112,571
Total liabilities and fund balance$98,168 $16,873 $115,041 $112,571
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 16
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2012
With Comparative Totals For The Year Ended December 31, 2011
526 G.O. Capital 527 G.O. Capital
ImprovementImprovement
Bonds of 2008Bonds of 2009
Total Nonmajor Debt Service Funds
20122011
Revenues:
General property taxes$ - $ - $ - $400,902
Investment income1,6904602,1502,048
Total revenues1,6904602,150402,950
Expenditures:
Debt service:
Principal170,000105,000275,000255,000
Interest233,03027,650260,680266,675
Total expenditures403,030132,650535,680521,675
Revenues over (under) expenditures(401,340)(132,190)(533,530)(118,725)
Other financing sources (uses):
Transfers in400,000136,000536,000134,000
Net change in fund balance(1,340)3,8102,47015,275
Fund balance - January 199,50813,063112,57197,296
Fund balance - December 31$98,168$16,873 $115,041 $112,571
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2012
With Comparative Totals For December 31, 2011
401 Budgeted 712 Storm
Projects and Sewer Renewal
Equipment405 Park 407 Moelter 572 City Hall / Replacement
RevolvingDevelopmentParkImprovementsFund
Assets
Cash and investments$1,210,263$750,471$589,302$104,209$402,714
Accrued interest receivable7,4965,4864,5049222,527
Accounts receivable - net - - - - -
Due from other governments8,091 - - - -
Total assets$1,225,850 $755,957 $593,806 $105,131 $405,241
Liabilities and Fund Balance
Liabilities:
Accounts payable$41,704$ - $ - $152$ -
Contracts payable - - - - -
Total liabilities41,704001520
Fund balance:
Restricted - 311,502559,362 - -
Assigned1,184,146444,45534,444104,979405,241
Total fund balance1,184,146 755,957 593,806 104,979 405,241
Total liabilities and fund balance $1,225,850 $755,957 $593,806 $105,131 $405,241
Statement 17
734 Water 771 Sanitary 773 AAE -
Tower735 Well 736 Sewer Sewer772 Water Storm Sewer
Totals Nonmajor Capital Project
RehabilitationRehabilitationRehabilitationConnectionConnectionConnection
Funds
20122011
$125,791$107,379$45,810$410,001$438,258$942,833$5,127,031$4,886,722
6077073212,9973,2046,89235,66348,934
- - - - - - - 3,252
- - - - - - 8,091 -
$126,398 $108,086 $46,131 $412,998 $441,462 $949,725 $5,170,785 $4,938,908
$ - $ - $ - $ - $ - $ - $41,856$10,220
- - - - - - - 121,393
0 0 0 0 0 0 41,856 131,613
- - - - - - 870,864913,170
126,398108,08646,131412,998441,462949,7254,258,0653,894,125
126,398 108,086 46,131 412,998 441,462 949,725 5,128,929 4,807,295
$126,398 $108,086 $46,131 $412,998 $441,462 $949,725 $5,170,785 $4,938,908
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, 2012
With Comparative Totals For The Year Ended December 31, 2011
401 Budgeted 712 Storm
Projects and Sewer Renewal
Equipment405 Park 407 Moelter 572 City Hall / Replacement
RevolvingDevelopmentParkImprovementsFund
Revenues:
Intergovernmental$11,963$ - $ - $ - $ -
Charges for services:
Connections charges - - - - -
Rents - - - - -
Investment income13,99810,2458,4121,7224,719
Refunds and reimbursements13,475 - - - -
Donations and contributions200 - 200 - -
Total revenues39,63610,2458,6121,7224,719
Expenditures:
Current:
General government31,128 - - 3,308 -
Public safety12,453 - - - -
Public works137,813 - - - -
Parks and recreation5,766 - 6,776 - -
Capital outlay122,451 - 35,730 - -
Total expenditures309,611042,5063,3080
Revenues over (under) expenditures(269,975)10,245(33,894)(1,586)4,719
Other financing sources (uses):
Transfers in428,178 - - - 78,000
Transfers out - - - (9,094) -
Total other financing sources (uses)428,17800(9,094)78,000
Net change in fund balance158,20310,245(33,894)(10,680)82,719
Fund balance - January 11,025,943745,712627,700115,659322,522
Fund balance - December 31$1,184,146 $755,957 $593,806 $104,979 $405,241
Statement 18
734 Water 771 Sanitary 773 AAE -
Tower735 Well 736 Sewer Sewer772 Water Storm Sewer
Totals Nonmajor Capital Project
RehabilitationRehabilitationRehabilitationConnectionConnectionConnection
Funds
20122011
$ - $ - $ - $ - $ - $ - $11,963$ -
- - - - - - - 18,824
31,913 - - - - - 31,91327,861
1,1351,3205995,5975,98212,87066,59985,287
- - - - - - 13,4753,252
- - - - - - 40012,500
33,0481,3205995,5975,98212,870124,350147,724
- - - - - - 34,43623,984
- - - - - - 12,4537,903
125 - - - - - 137,938136,422
- - - - - - 12,54215,535
- - - - - - 158,181734,398
12500000355,550918,242
32,9231,3205995,5975,98212,870(231,200)(770,518)
40,47913,3331,938 - - - 561,928607,798
- - - - - - (9,094)(21,450)
40,47913,3331,938000552,834586,348
73,40214,6532,5375,5975,98212,870321,634(184,170)
52,99693,43343,594407,401435,480936,8554,807,2954,991,465
$126,398 $108,086 $46,131 $412,998 $441,462 $949,725 $5,128,929 $4,807,295
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 19
SUBCOMBINING BALANCE SHEET
AGENCY FUNDS
December 31, 2012
With Comparative Totals For December 31, 2011
902 Developer 903 Developer
Deposit FundEscrow FundTotals - Agency Funds
20122011
Assets
Cash and investments$89,031$136,000$225,031$238,758
Due from developers5,377 - 5,37717,168
Total assets$94,408 $136,000 $230,408 $255,926
Liabilities
Escrow deposits payable$ - $136,000$136,000$146,500
Accounts payable2,872 - 2,8727,502
Due to developers91,536 - 91,536101,924
Total liabilities$94,408 $136,000 $230,408 $255,926
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 20
SUBCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2012
BalanceBalance
January 1,December 31,
2012AdditionsDeletions2012
902 Developer Deposit Fund
Assets:
Cash and investments$92,258$10,607$13,834$89,031
Due from developers17,1685,37717,1685,377
Total assets$109,426$15,984$31,002$94,408
Liabilities:
Accounts payable$7,502$2,872$7,502$2,872
Due to developers101,92413,11223,50091,536
Total liabilities$109,426$15,984$31,002$94,408
903 Developer Escrow Fund
Assets:
$146,500$ - $10,500$136,000
Cash and investments
Liabilities:
Escrow deposits payable$146,500$ - $10,500$136,000
Total Agency:
Assets:
Cash and investments$238,758$10,607$24,334$225,031
Due from developers17,1685,37717,1685,377
Total assets$255,926$15,984$41,502$230,408
Liabilities:
Escrow deposits payable$146,500$ - $10,500$136,000
Accounts payable7,5022,8727,5022,872
Due to developers101,92413,11223,50091,536
Total liabilities$255,926$15,984$41,502$230,408
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STATISTICAL SECTION (UNAUDITED)
CITY OF OAK PARK HEIGHTS, MINNESOTA
NET POSITION BY COMPONENT
(1)
Last Nine Fiscal Years
(Accrual Basis of Accounting)
2004200520062007
Governmental activities:
Net investment in capital assets$10,059,989$9,928,521$11,481,494$11,799,071
Restricted1,192,681856,611899,708614,170
Unrestricted7,326,0308,213,51310,290,01810,950,978
Total governmental activities net position$18,578,700$18,998,645$22,671,220$23,364,219
Business-type activities:
Net investment in capital assets$5,646,237$5,985,350$5,826,582$6,355,129
Unrestricted834,8271,108,0691,382,1631,355,564
Total business-type activities net position$6,481,064$7,093,419$7,208,745$7,710,693
Primary government:
Net investment in capital assets$15,706,226$15,913,871$17,308,076$18,154,200
Restricted1,192,681856,611899,708614,170
Unrestricted8,160,8579,321,58211,672,18112,306,542
Total primary government net position$25,059,764$26,092,064$29,879,965$31,074,912
(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
20082009201020112012
$12,328,032$11,908,771$11,519,528$11,381,436$11,172,202
235,559867,1031,234,8351,152,7891,007,208
11,705,19212,164,92513,308,71213,958,68915,242,157
$24,268,783$24,940,799$26,063,075$26,492,914$27,421,567
$6,227,796$6,925,825$6,752,968$6,964,787$6,746,344
1,165,2051,156,2081,166,8531,135,6791,279,874
$7,393,001$8,082,033$7,919,821$8,100,466$8,026,218
$18,555,828$18,834,596$18,272,496$18,346,223$17,918,546
235,559867,1031,234,8351,152,7891,007,208
12,870,39713,321,13314,475,56515,094,36816,522,031
$31,661,784$33,022,832$33,982,896$34,593,380$35,447,785
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN NET POSITION
(1)
Last Nine Fiscal Years
(Accrual Basis of Accounting)
2004200520062007
Expenses
Governmental activities:
General government$832,609$882,800$987,597$1,046,676
Public safety1,155,2431,210,1791,226,0421,234,769
Public works602,111511,137755,989796,025
Parks and recreation123,737138,378152,899184,008
Interest on long-term debt67,36555,69543,96537,255
Total governmental activities expenses2,781,0652,798,1893,166,4923,298,733
Business-type activities:
Water323,527373,996398,766387,766
Sanitary sewer517,595560,876661,367606,458
Storm sewer41,08234,15065,14934,277
Sanitation167,258164,572147,565153,848
Total business-type activities expenses1,049,4621,133,5941,272,8471,182,349
Total primary government expenses$3,830,527$3,931,783$4,439,339$4,481,082
Program revenues
Governmental activities:
Charges for services:
Licenses and permits$304,594$365,512$306,266$155,820
Inspections - City of Bayport50,33784,719 - -
Administrative - Enterprise Fund90,86094,14064,46563,200
Direct charges to developers315,535139,191938,298244,895
Connection charges - 18,326780,14134,595
Park fees - 22,9521,004,240 -
Refunds and reimbursements91,784106,569155,080105,832
Other activities95,523144,559116,793151,002
Operating grants and contributions68,35888,22974,105142,879
Capital grants and contributions212,63562,686165,39711,324
Total governmental activities program revenues1,229,6261,126,8833,604,785909,547
Business-type activities:
Charges for services:
Water388,198423,876502,407482,100
Sanitary sewer577,253705,456767,207679,821
Storm sewer96,90973,54674,17373,942
Sanitation70,87896,85997,26697,764
Operating grants and contributions - - - -
Capital grants and contributions58,706 - - -
Total business-type activities
program revenues1,191,9441,299,7371,441,0531,333,627
Total primary government program revenues$2,421,570$2,426,620$5,045,838$2,243,174
Table 2
Page 1 of 2
20082009201020112012
$1,477,836$1,356,038$1,575,297$1,381,589$1,455,359
1,347,1641,364,7341,407,1611,411,6901,431,594
796,532957,308980,630999,4731,128,249
224,426211,795201,716239,100248,243
138,399262,586280,548275,196377,713
3,984,3574,152,4614,445,3524,307,0484,641,158
405,965434,577466,218472,040470,266
670,661680,468740,184746,656668,588
59,11543,337108,46748,36043,904
- - - - -
1,135,7411,158,3821,314,8691,267,0561,182,758
$5,120,098$5,310,843$5,760,221$5,574,104$5,823,916
$203,041$100,074$197,181$131,081$163,986
- - - - -
62,04064,40066,42069,4253,830
- - - - -
-5,419147,09818,824 -
- -241,440 - -
153,267112,856117,735114,847125,243
84,905112,161180,639107,860102,320
90,54888,187145,04896,402112,912
10,091688,97576,97015,94324,131
603,8921,172,0721,172,531554,382532,422
475,658546,606565,859648,663714,660
656,809651,022749,378782,266800,281
74,25774,47375,69866,74083,762
494 - - - -
- - -4,594 -
- - - - -
1,207,2181,272,1011,390,9351,502,2631,598,703
$1,811,110$2,444,173$2,563,466$2,056,645$2,131,125
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN NET POSITION
(1)
Last Nine Fiscal Years
(Accrual Basis of Accounting)
2004200520062007
Net (expense) revenue:
Governmental activities($1,551,439)($1,671,306)$438,293($2,389,186)
Business-type activities142,482166,143168,206151,278
Total primary government net
(expense) revenue(1,408,957)(1,505,163)606,499(2,237,908)
General revenues and other changes in net position:
Governmental activities:
General property taxes and tax increment1,979,2882,222,3352,417,0142,730,994
Unrestricted grants and contributions3,0602,04029,838111,090
Investment earnings199,737258,614425,160532,827
Gain on sale of property - - 244,0999,237
Miscellaneous29,12525,20616,25427,626
Transfers90,423(416,944)101,917(329,589)
Total governmental activities2,301,6332,091,2513,234,2823,082,185
Business-type activities:
Investment earnings19,14829,26849,03760,103
Transfers(90,423)416,944(101,917)329,589
Total business-type activities(71,275)446,212(52,880)389,692
Total primary government$2,230,358$2,537,463$3,181,402$3,471,877
Change in net position:
Governmental activities$750,194$419,945$3,672,575$692,999
Business-type activities71,207612,355115,326540,970
Total primary government$821,401$1,032,300$3,787,901$1,233,969
(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
20082009201020112012
($3,380,465)($2,980,389)($3,272,821)($3,752,666)($4,108,736)
71,477113,71976,066235,207415,945
(3,308,988)(2,866,670)(3,196,755)(3,517,459)(3,692,791)
3,146,0493,537,8293,692,1273,934,3094,289,566
56,693180,430104,9872,0402,040
606,996456,934320,183239,763204,422
20,89512,165 - 8,9607,950
22,14814,18616,58817,71829,172
432,248(549,139)261,212(20,285)504,239
4,285,0293,652,4054,395,0974,182,5055,037,389
43,08026,17422,93417,78014,046
(432,248)549,139(261,212)20,285(504,239)
(389,168)575,313(238,278)38,065(490,193)
$3,895,861$4,227,718$4,156,819$4,220,570$4,547,196
$904,564$672,016$1,122,276$429,839$928,653
(317,691)689,032(162,212)273,272(74,248)
$586,873$1,361,048$960,064$703,111$854,405
CITY OF OAK PARK HEIGHTS, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2003200420052006
General Fund:
Nonspendable$ - $ - $ - $ -
Assigned for:
Employee benefits128,458133,961141,533169,633
Ensuing year's budget - - - -
Unassigned:
Cash flow reserve996,0001,147,0001,237,0001,409,000
General contingency reserve368,000419,000439,000493,000
Remaining unassigned balance202,153147,647286,210230,869
Total general fund$1,694,611$1,847,608$2,103,743$2,302,502
All other governmental funds:
Restricted for:
Debt service$590,209$454,694$214,783$717,829
Park improvements - - - -
Law enforcement - - - -
Tax increment - - - -
Assigned, reported in:
Special revenue funds83,98481,16775,72186,326
Debt service funds - - - 47,315
Capital projects funds5,162,6295,381,7346,107,9088,022,588
Total all other governmental funds$5,836,822$5,917,595$6,398,412$8,874,058
Notes: The City implemented GASB Statement No. 54 for the fiscal year ended December 31, 2011. Prior to 2011, fund
balance was reported as reserved, designated or undesignated. Beginning in 2011, fund balance is reported as
nonspendable, restricted, committed, assigned or unassigned.
Table 3
200720082009201020112012
$ - $ - $ - $ - $2,057$4,609
183,000188,000188,000172,000179,000165,000
- - 193,635100,000 - -
1,698,0001,541,0001,558,0001,593,0001,911,0002,060,000
595,000542,000557,000554,000698,000734,000
39,620345,370223,377554,797471,504706,024
$2,515,620$2,616,370$2,720,012$2,973,797$3,261,561$3,669,633
$460,263$127,247$102,115$97,296$112,571$5,309,831
- - - -913,170870,864
- - - -8,1556,923
- - - - -4,604
100,960102,181100,73788,47131,19831,627
- - - - - -
8,480,88414,977,67813,236,36111,188,96810,704,78211,645,003
$9,042,107$15,207,106$13,439,213$11,374,735$11,769,876$17,868,852
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
(1)
Last Nine Fiscal Years
2004200520062007
Revenues:
General property taxes$1,969,207$2,218,906$2,423,246$2,687,730
Tax increment - - - -
Special assessments305,758225,516553,45042,342
Licenses and permits304,594365,512306,266155,820
Intergovernmental70,362101,519102,818188,594
Charges for services150,126294,8461,886,776192,545
Fines and forfeits78,27469,85084,73066,189
Investment income199,737258,614425,160532,827
Direct charges to developers374,241139,191938,298244,895
Refunds and reimbursements109,958125,405155,080105,832
Donations and contributions20,32710,117136,51483,064
Total revenues3,582,584 3,809,476 7,012,338 4,299,838
Expenditures:
Current:
General government793,871851,437941,8751,002,763
Public safety1,119,5331,172,8031,180,4411,193,451
Public works296,997208,848423,010458,241
Parks and recreation88,18099,980107,071138,491
Capital outlay672,322379,3441,797,0171,327,754
Debt service:
Principal retirement400,000395,000190,000125,000
Interest and other68,33456,71044,53537,688
Bond issuance costs - - - -
Total expenditures3,439,237 3,164,122 4,683,949 4,283,388
Revenues over (under) expenditures143,347 645,354 2,328,389 16,450
Other financing sources (uses):
Sale of capital assets - - 244,0999,237
Bonds issued - - - -
Premium on bonds issued - - - -
Transfers in178,923180,098190,417432,280
Transfers out(88,500)(88,500)(88,500)(76,800)
Total other financing sources (uses)90,423 91,598 346,016 364,717
Net change in fund balance$233,770$736,952$2,674,405$381,167
Debt service as a percentage of noncapital expenditures16.9%16.2%8.1%5.5%
Debt service as percentage of total expenditures 13.6%14.3%5.0%3.8%
(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
20082009201020112012
$3,156,807$3,470,670$3,697,809$3,984,389$4,245,360
- - - - 26,583
32,07843,81028,58322,95221,906
203,041100,074197,181131,081163,986
141,141276,772282,55197,442114,952
102,199107,392561,411134,23749,441
63,60274,58873,76160,82256,709
606,996456,934320,183239,763204,422
- - - - -
134,987137,422134,323132,565154,415
27,672612,5252,18412,500400
4,468,523 5,280,187 5,297,986 4,815,751 5,038,174
1,075,6161,117,8221,370,3811,178,7101,195,121
1,292,4651,277,6001,312,3351,351,5671,394,586
632,530586,872592,897605,955737,001
146,928139,188125,414129,327132,497
901,5644,957,6533,583,666767,988160,856
750,000135,000250,000255,000275,000
134,850255,213272,000266,675260,680
111,02033,537 - -103,854
5,044,973 8,502,885 7,506,693 4,555,222 4,259,595
(576,450)(3,222,698)(2,208,707)260,529 778,579
21,28912,20042510,01024,418
6,300,0001,195,000 - -5,140,000
5,827 - - -155,137
1,790,9261,144,241397,589412,366408,914
(1,275,843)(792,994) - - -
6,842,199 1,558,447 398,014 422,376 5,728,469
$6,265,749($1,664,251)($1,810,693)$682,905$6,507,048
21.9%11.1%13.3%13.8%13.4%
17.5%4.6%7.0%11.5%12.6%
CITY OF OAK PARK HEIGHTS, MINNESOTA
TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Fiscal
YearCommercial/
EndedResidentialIndustrialPublicAll
December 31,PropertyPropertyUtilityOther
2003$2,390,918$2,058,269$1,430,734$94,622
20042,603,2442,303,4611,417,841121,381
20052,907,9262,526,8581,378,249105,907
20063,269,4682,687,6501,415,909112,921
20073,318,0523,331,9101,733,70388,073
20083,429,1043,679,1883,060,14482,329
20093,483,7263,952,5233,568,95793,832
20103,304,1103,869,5683,311,71687,480
20113,202,6133,676,9853,454,88092,822
20122,928,5143,567,1963,599,10491,665
Source: Washington County Certificate as to Taxes and Taxable Property
Table 5
Adjusted
Less:Less:Tax Capacity
TotalFiscalTax AdjustedTotalEstimatedas a Percent
TaxDisparityIncrementTax CapacityDirect TaxMarketof Total Tax
CapacityContributionCapturedValueRateValueCapacity
$5,974,543$657,651$ - $5,316,89235.799$406,640,80089.0%
6,445,927798,048 - 5,647,87934.382447,871,20087.6%
6,918,940954,578 - 5,964,36236.488485,026,70086.2%
7,485,9481,037,753 - 6,448,19538.377539,357,10086.1%
8,471,7381,115,215 - 7,356,52335.731579,089,80086.8%
10,250,7651,508,660 - 8,742,10536.343673,570,60085.3%
11,099,0382,177,678 - 8,921,36038.732718,753,40080.4%
10,572,8742,492,111 - 8,080,76343.845682,742,10076.4%
10,427,3002,117,456 - 8,309,84445.028674,199,10079.7%
10,186,4792,336,41126,9137,823,15551.710643,608,30076.8%
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 6
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES
Last Ten Fiscal Years
Overlapping Rates
City
FiscalDirectSchoolOther
YearRateCountyDistrictDistrictsTotal
200335.79933.30326.56612.067107.735
200434.38231.20118.74610.79195.120
200536.48828.59919.3936.41290.892
200636.13626.96819.4055.74188.250
200735.73325.67319.0044.85685.266
200836.34325.93617.4044.88584.568
200938.73226.37117.7144.83287.649
201043.84527.77519.7345.10796.461
201145.02829.77220.3005.536100.636
201251.71031.93922.3346.250112.232
Source: Washington County website.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 7
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
20122003
Percentage Percentage
Taxableof Total CityTaxableof Total City
CapacityCapacityCapacityCapacity
TaxpayerValueRankValueValueRankValue
Xcel Energy$3,844,665137.74%$1,534,009129.71%
VSSA Boutwells Landing LLC550,40925.40%245,96724.76%
Wal-Mart Stores, Inc.294,78032.89% - - 0.00%
OPH Pat LLC & OPH Val LLC264,73642.60% - - -
SC Mall LLC213,17652.09%199,159 33.86%
Menard Inc.205,96262.02%123,866 5 2.40%
Lowe's Home Centers, Inc.188,31071.85% - - -
OP Stillwater LLC165,77081.63% - -
W.A.T.E. Enterprises Inc.134,47691.32%50,202100.97%
Raduenz Dealership 111,808101.10% - - -
KTJ Limited Partnership Eleven - - - 182,946 43.54%
Wal-Mart Real Estate Business - - - 94,102 61.82%
Oak Ridge Place of Oak Park - - - 74,700 71.45%
Stillwater West LLC - - - 45,186 90.88%
Secure Mini Storage Limited - - - 48,792 8 0.94%
Total$5,974,09258.65%$2,598,92950.33%
Total All Property $10,186,479$5,163,440
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 8
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
FiscalTaxesCollectionsCollected Within The
YearLeviedFiscal Year of the LevyinTotal Collections to Date
EndedFor ThePercentageSubsequentPercentage
(1)
Fiscal Year
December 31,Amountof LevyYearsAmountof Levy
2003$1,904,483$1,891,04699.29%$17,524$1,908,570100.21%
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%31,5792,394,77199.99%
20072,781,4892,646,42195.14%(20,936)2,625,48594.39%
20083,286,2303,211,39297.72%(10,973)3,200,41997.39%
20093,574,8553,447,96596.45%81,8513,529,81698.74%
20103,662,4553,584,02797.86%35,1513,619,17898.82%
20113,870,7703,819,22098.67%20,6013,839,82199.20%
20124,229,9244,176,12598.73% - 4,176,12598.73%
(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
2003$375,000$1,485,000$1,860,00031.13%430
2004225,0001,235,0001,460,00022.65%315
200565,0001,000,0001,065,00015.39%228
2006 -875,000875,00011.69%188
2007 -750,000750,0008.85%161
20086,300,000 -6,300,00061.46%1,326
20097,360,000 -7,360,00066.31%1,549
20107,110,000 -7,110,00067.25%1,497
20116,855,000 -6,855,00065.74%1,580
201211,720,000(1) - 11,720,000115.05%2,701
Notes: (1)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. In 2012, the City issued the $5,140,000 Crossover
Refunding Bonds to refund $4,860,000 of the 2008 GO Improvement Bonds. The 2008 Bonds will
be called for prepayment in 2016.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 10
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2012
Estimated
EstimatedShare of
DebtPercentageOverlapping
Governmental UnitOutstandingApplicableDebt
Debt repaid with property taxes:
Independent School District No. 83463,145,00010.15%$6,409,218
Washington County167,100,0003.00%5,013,000
Washington County HRA51,990,1583.13%1,627,292
Metro Transit257,390,0000.35%900,865
Subtotal - overlapping debt13,950,374
City direct debt11,720,000100.00%11,720,000
Total direct and overlapping debt$25,670,374
Sources: Washington County
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City.
This Table estimates the portion of the outstanding debt of those overlapping governments that is borne by the
residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and
repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account.
However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each
overlapping government.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 11
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2012
Market value$643,608,300
Debt limit (3% of market value)19,308,249
Debt applicable to limit:
General obligation bonds11,720,000
Less: Amount set aside for repayment
of general obligation debt(5,309,830)
Total net debt applicable to limit6,410,170
Legal debt margin$12,898,079
Legal Debt Margin Calculation for Fiscal Years 2003 Through 2012
Net DebtLegalAmount of Debt
FiscalDebtApplicable toDebtApplicable to
YearLimitLimitMarginDebt Limit
20038,132,816 - 8,132,8160.00%
20048,957,424 - 8,957,4240.00%
20059,700,534 - 9,700,5340.00%
200610,787,142 - 10,787,1420.00%
200711,581,796 - 11,581,7960.00%
200820,207,1186,172,75314,034,36530.55%
200921,562,6027,257,88514,304,71733.66%
201020,482,2637,012,70413,469,55934.24%
201120,098,1616,746,31513,351,84633.57%
2012 19,308,249 6,410,17012,898,07933.20%
Note: In 2008, State Statutes increased the percentage used to calculate the debt limit from 2% to 3%.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 12
PLEDGED REVENUE COVERAGE
Last Ten Fiscal Years
Improvement Bonds
PropertySpecialProperty Tax
FiscalTaxAssessmentTransfer FromDebt Service
(1)(2)(3)
CollectionsCollectionsGeneral Fund
YearPrincipalInterestCoverage
2003$ - $239,390$ - $275,000$69,2250.695
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
-
2009336,292135,000252,6130.868
- -
2010392,805122,000250,000272,0000.986
-
2011400,902134,000255,000266,6751.025
-
2012 -536,000275,000260,6801.001
-
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1,3)
Capital Improvement Bonds were issued during 2008 and 2009 to finance construction of City Hall. The debt service
payments, which began in 2009, are funded by property tax collections and transfers from the General Fund.
(2)
Debt service payments on Improvement Bonds of 1998 ended in 2008 when the bond was paid off. Special assessment
collections, as well as transfers from the connection charge funds, were used to make the debt service payments.
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 13
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Per
Capita
FiscalUnemploymentPersonalPersonal
(1)(1)
IncomeIncome
YearPopulationRate
20034,3294.1%
20044,6334.0%
20054,6643.4%
20064,6763.5%
20074,7514.1%
Information Not Available
20084,7085.4%
20094,6537.4%
20104,3396.3%
20114,3395.2%
2012 4,4455.3%
Sources: Metropolitan Council (population), Continuing Disclosure Document or County Records (unemployment rate)
(1)
Information Not Available
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CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 14
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
20122003
EmployerProduct ServiceEmployeesEmployees
Andersen CorporationWindow Manufacturer505600
VSSA - Boutwell's Landing/McKean SquareSenior Community Housing504135
State of Minnesota Correctional FacilityGovernment Correctional Institution350297
Wal-Mart Stores, Inc.Retail269225
ISD No. 834, StillwaterPublic education174220
Menard's Inc.Retail Lumber/Hardware115100
Lowe'sRetail113 -
Xcel EnergyElectric Utility107100
Stillwater MotorsAuto Dealership/Service Repair92105
Kowalski'sRetail/Grocery80 -
Kohl'sRetail78 -
Rainbow FoodsRetail/Grocery - 225
Stillwater FordAuto Dealership/Service Repair - 129
Total2,3872,136
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/Program200320042005
General government:
Administration222
Finance333
Building inspections222
Public safety101010
Public works344
Total202121
Source: City Finance Department
Table 15
Full-Time Equivalent Employees as of December 31,
2006200720082009201020112012
2222222
3333333
2222221
10101010101010
4443344
21212120202120
CITY OF OAK PARK HEIGHTS, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program200320042005
Police:
Physical arrests237308251
Parking violations145118123
Traffic violations7121,0231,089
Fire:
Fire and related calls122113115
Medical calls164200251
Building inspection:
Permits issued:
Residential44482
Commercial131113
Total permit valuation$19,878,493$18,043,522$12,732,475
Water:
Connections1,2121,2591,277
Average daily demand (thousands of gallons)645,000611,000614,000
Sewer:
Connections1,2731,2351,251
Sources: Various City departments.
(1)
Connection for Irrigation accounts removed from the total
Table 16
Fiscal Year
2006200720082009201020112012
240207224208176151151
1249213517017115599
7386131,0169691,2408741,126
119106989111083107
302270292293260306451
11194 - 1 - 2
15822132
$36,975,066$6,521,063$18,707,532$7,254,000$10,955,024$1,828,000$8,776,295
(1)
1,2891,3041,3151,3181,3171,3211,273
676,000681,452654,172681,816576,085593,496667,835
1,2641,2741,2831,2851,2681,2781,286
CITY OF OAK PARK HEIGHTS, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program2003200420052006
Police:
Stations1111
Squad cars7776
Fire stations
Other public works:
Miles of paved streets22.022.022.022.0
Streetlights265330392392
Traffic signals2222
Parks and recreation:
Parkland acreage105105105105
Number of parks4444
Water:
Water mains (miles)25.526.626.626.6
Fire hydrants302316316316
Storage capacity (thousands of gallons)750750750750
Wastewater:
Sanitary sewers (miles)21.921.923.323.3
Storm sewers (miles)12.012.512.512..5
Sources: Various City departments.
Table 17
Fiscal Year
200720082009201020112012
111111
666666
22.022.022.022.022.022.0
396396396396396396
222222
104108104104104104
555555
26.826.827.127.127.127.1
316316265265265265
750750750750750750
24.924.924.924.924.924.9
12.612.612.612.612.612.6
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