HomeMy WebLinkAbout2013 Annual Financial Report
CITY OF OAK PARK HEIGHTS, MINNESOTA
ANNUAL FINANCIAL REPORT
December 31, 2013
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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 Ten Fiscal YearsTable 190
Changes in Net Position - Last Ten Fiscal YearsTable 292
Fund Balances, Governmental Funds - Last Ten Fiscal YearsTable 396
Changes in Fund Balances, Governmental Funds - Last Ten 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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2
CITY OF OAK PARK HEIGHTS, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
December 31, 2013
Term Expires
Mayor:
Mary McComberDecember 31, 2016
Councilmembers:
Chuck DoughertyDecember 31, 2016
Mike LilijegrenDecember 31, 2014
Mike RunkDecember 31, 2016
Mark SwensonDecember 31, 2014
Administrator:
Eric JohnsonAppointed
Finance Director:
Betty CarusoAppointed
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4
FINANCIAL SECTION
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INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Oak Park Heights, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
City of Oak Park Heights, Minnesota, as of and for the year ended December 31, 2013, and the
related notes to the financial statements, which collectively comprise City of Oak Park Heights,
Minnesota’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America;
this includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com
7
Equal Opportunity Employer 100-Percent Employee-Owned
HLB Tautges Redpath is a member of HLB International, a world-wide network of independent accounting firms and business advisors.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Oak Park Heights,
Minnesota, as of December 31, 2013, and the respective changes in financial position, and,
where applicable, cash flows thereof for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Emphasis of Matter
As described in Note 18 to the financial statements, in 2013 the City of Oak Park Heights,
Minnesota adopted new accounting guidance, GASB Statement No. 65, Items Previously
Reported as Assets and Liabilities. Our opinion is not modified with respect to this matter.
Report on Summarized Comparative Information
We have previously audited the City of Oak Park Heights, Minnesota’s 2012 financial
statements, and we expressed an unmodified audit opinion on the respective financial statements
of the governmental activities, the business-type activities, each major fund and the aggregate
remaining fund information in our report dated April 15, 2013. In our opinion, the summarized
comparative information presented herein as of and for the year ended December 31, 2012 is
consistent, in all material respects, with the audited financial statements from which it has been
derived.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, the budgetary comparison information and the schedule
of funding progress, as listed in the table of contents, be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
8
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Oak Park Heights, Minnesota’s basic financial statements. The
introductory section, combining and individual nonmajor fund financial statements, and
statistical section, are presented for purposes of additional analysis and are not a required part of
the basic financial statements.
The combining and individual nonmajor fund financial statements are the responsibility of
management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the
combining and individual nonmajor fund financial statements are fairly stated in all material
respects in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an
opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
March 31, 2014, on our consideration of the City of Oak Park Heights, Minnesota’s internal
control over financial reporting and on our tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements and other matters. The purpose of that report
is to describe the scope of our testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance
withGovernment Auditing Standards in considering the City of Oak Park Heights, Minnesota’s
internal control over financial reporting and compliance.
HLB TAUTGES REDPATH, LTD.
March 31, 2014
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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, 2013.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$36,571,285 (net position). Of this amount, $17,275,115 (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 $1,041,975.
As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $21,680,702, an increase of $60,692. The increase is due to a
combination of increased revenues, decreased operating expenditures, fund transfers and
capital outlays.
At the end of the current fiscal year the general fund balance was $3,514,371, of which
$5,201 is nonspendable, $173,000 is assigned, and $2,902,000 of unassigned fund balance is
meant to fund cash flow and contingencies during 2013.
The General Fund balance decreased by $236,787 as a result of an approved transfer of prior
year’s fund balance overage in accordance with the City’s Fund Balance Policy. The City
transferred $536,000 to fund expenditures in the Capital Revolving Fund. The net increase in
the General Fund prior to the fund balance transfer is due to favorable budget variances.
The City’s budgeted transfers were $346,050 from the General Fund to the Budgeted Projects
Fund for capital improvements for streets, parks, public safety, public works, and general
government; $337,225 from the General Fund to the Street Reconstruction Fund; $80,185
from the General Fund to the Storm Sewer Renewal Replacement Fund and $548,000 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.
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Managements Discussion and Analysis
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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
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Managements Discussion and Analysis
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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.
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Managements Discussion and Analysis
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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 $36,571,285 at the
close of the most recent fiscal year.
The largest portion of the City’s net position ($18,453,960 or 50%) 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
201320122013201220132012
Assets:
Current and other assets$23,059,529$22,160,497$1,587,489$1,368,075$24,647,018$23,528,572
Capital assets18,221,73917,752,2026,604,5156,746,34424,826,25424,498,546
Total assets$41,281,268$39,912,699$8,192,004$8,114,419$49,473,272$48,027,118
Liabilities:
Long-term liabilities outstanding$11,422,248$11,767,849$18,635$32,721$11,440,883$11,800,570
Other liabilities1,341,037723,283120,06755,4801,461,104778,763
Total liabilities$12,763,285$12,491,132$138,702$88,201$12,901,987$12,579,333
Net position:
Net investment in capital assets$11,849,446$11,172,202$6,604,514$6,746,344$18,453,960$17,918,546
Restricted842,2101,007,208 - - 842,2101,007,208
Unrestricted15,826,32715,242,1571,448,7881,279,87417,275,11516,522,031
Total net position$28,517,983$27,421,567$8,053,302$8,026,218$36,571,285$35,447,785
A portion of the City’s net position represents 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.
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Managements Discussion and Analysis
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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 $1,014,891 during 2013. Key
elements of this increase are as follows:
City of Oak Park Heights’ Changes in Net Position
Governmental ActivitiesBusiness-Type ActivitiesTotals
201320122013201220132012
Revenues:
Program revenues:
Charges for services$594,268$395,379$1,641,716$1,598,703$2,235,984$1,994,082
Operating grants and contributions99,171112,912 - - 99,171112,912
Capital grants and contributions341,99124,13123,234 - 365,22524,131
General revenues:
General property taxes4,434,1794,262,983 - - 4,434,1794,262,983
Tax increment106,92426,583 - - 106,92426,583
Grants and contributions not
restricted to specific programs2,0402,040 - - 2,0402,040
Gain on sale of capital assets1,9567,950(1,472) - 4847,950
Other revenue26,52629,172 - - 26,52629,172
Unrestricted investment earnings(85,474)204,422(7,026)14,046(92,500)218,468
Total revenues5,521,5815,065,5721,656,4521,612,7497,178,0336,678,321
Expenses:
General government1,601,4021,455,359 - - 1,601,4021,455,359
Public safety1,497,7651,431,594 - - 1,497,7651,431,594
Public works1,080,4371,128,249 - - 1,080,4371,128,249
Parks and recreation269,929248,243 - - 269,929248,243
Interest on long-term debt463,537377,713 - - 463,537377,713
Water - - 468,932470,266468,932470,266
Sanitary sewer - - 695,817668,588695,817668,588
Storm sewer - - 58,23943,90458,23943,904
Total expenses 4,913,0704,641,1581,222,9881,182,7586,136,0585,823,916
Increase in net position before transfers608,511424,414433,464429,9911,041,975854,405
Transfers406,380504,239(406,380)(504,239) - -
Change in net position1,014,891928,65327,084(74,248)1,041,975854,405
Net position - January 1, as previously reported27,421,56726,492,9148,026,2188,100,46635,447,78534,593,380
Prior period adjustment81,525 - - - 81,525 -
Net position - January 1, as restated27,503,09226,492,9148,026,2188,100,46635,529,31034,593,380
Net position - December 31$28,517,983$27,421,567$8,053,302$8,026,218$36,571,285$35,447,785
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Managements Discussion and Analysis
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Below are specific graphs which provide comparisons of the governmental activities
revenues and expenditures:
Governmental Activities -Revenues
Other revenue
1%
Tax increment
Unrestricted investment
Charges for services
2%
Operating grants and
earnings
11%
contributions
-2%
2%
Capital grants and
contributions
6%
General property taxes
80%
Governmental Activities -Expenses
Interest on long-term debt
9%
Parks and recreation
General government
6%
33%
Public works
22%
Public safety
30%
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Managements Discussion and Analysis
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Business-Type Activities
Business-type activities increased net position by $27,084 during 2013. Below are graphs
showing the business-type activities revenue and expense comparisons:
Business-Type Activities -RevenuesBusiness-Type Activities -RevenuesBusiness-Type Activities -Revenues
Unrestricted investment
earnings
Less than 1%
Charges for services
100%
Business-Type Activities -Expenses
Storm sewer
5%
Water
38%
Sanitary sewer
57%
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Managements Discussion and Analysis
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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 $21,680,702.
The General Fund decreased by $236,787 in 2013. The City had amended the budget to
reallocate the fund balance by $633,295 in accordance with the City’s fund balance policy.
The allocation consists of $97,295 for over budgeted or unfunded expenditures and the
transfer of $536,000 to the Capital Revolving Fund is the portion of the City’s expenditures
for infrastructure betterments due to the Highway 36 Bridge project being constructed by the
State of Minnesota and Minnesota Department of Transportation.
Expenditures were under budget by $199,582 due to most city department’s 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 and materials and
supplies.
The G.O. CIP Refunding Bonds of 2012A decreased by $116,728, due to scheduled debt
payments made with escrowed funds.
The Capital Revolving Fund increased by $106,334, a net result of a $536,000 transfer from
the General Fund and the expenditures incurred relating to the Highway 36 Bridge Project
that is being constructed by the State of Minnesota and the Minnesota Department of
Transportation. The costs incurred are a result of negotiating funding and costs of the
infrastructure that the city is obligated to relocate for the project.
The Street Reconstruction Capital Project Fund increased by $19,079 during 2013 . This
increase is from a transfer of $337,225 from the General Fund net of the expenditures related
to the 2014-2015 Street Reconstruction Project.
The Renewal and Replacement Capital Project Fund decreased by $173,016 during 2013.
This fund receives an annual transfer from the proprietary funds in an amount equal to
depreciation expense on contributed capital assets. The reduction is due to expenditures for
infrastructure replacement.
The nonmajor special revenue funds increased by $14,831 during 2013.
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Managements Discussion and Analysis
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The nonmajor debt service funds decreased by $564 during 2013.
The nonmajor capital project funds increase by $447,543 during 2013 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 2013, increasing other contractual
services for the Mayor and Council, and public works – snow removal for $2,495 and
$66,100, respectively. In addition, transfers out were amended to include an additional
$536,000 to the Revolving Capital Fund and $20,700 transfer to the Renewal and
Replacement Capital Project Fund. Lastly, contingencies were increased by $7,000.
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, 2013, amounts to $24,826,255 (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.
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Managements Discussion and Analysis
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City of Oak Park Heights’ Capital Assets
(Net of Depreciation
)
BeginningEnding
BalanceIncreasesDecreasesBalance
Governmental activities:
Capital assets, not being depreciated:
Land$2,238,930$434$ - $2,239,364
Construction in progress2,6751,116,122 - 1,118,797
Total capital assets, not being depreciated2,241,6051,116,55603,358,161
Capital assets, being depreciated:
Buildings and structures7,540,25034,459(11,048)7,563,661
Other improvements1,529,55921,900(7,090)1,544,369
Machinery and equipment581,644 - (8,000)573,644
Furniture and fixtures419,86242,116(43,471)418,507
Infrastructure12,907,27120,856 - 12,928,127
Total capital assets, being depreciated22,978,586119,331(69,609)23,028,308
Less accumulated depreciation for:
Buildings and structures468,137180,786(11,048)637,875
Other improvements267,06645,929(7,090)305,905
Machinery and equipment261,83758,560(8,000)312,397
Furniture and fixtures181,98942,291(28,573)195,707
Infrastructure6,288,960423,885 - 6,712,845
Total accumulated depreciation7,467,989751,451(54,711)8,164,729
Total capital assets being depreciated - net15,510,597(632,120)(14,898)14,863,579
Governmental activities capital assets - net$17,752,202$484,436($14,898)$18,221,740
BeginningEnding
BalanceIncreasesDecreasesBalance
Business-type activities:
Capital assets, not being depreciated:
Land$937,919$ - $ - $937,919
Construction in progress - 72,476 - 72,476
Total capital assets, not being depreciated937,91972,47601,010,395
Capital assets, being depreciated:
Buildings and structures2,047,665 - - 2,047,665
Machinery and equipment428,15432,461(11,900)448,715
Infrastructure7,311,429 - - 7,311,429
Total capital assets, being depreciated9,787,24832,461(11,900)9,807,809
Less accumulated depreciation for:
Buildings and structures733,16076,856 - 810,016
Machinery and equipment207,12920,815(10,428)217,516
Infrastructure3,038,534147,623 - 3,186,157
Less accumulated depreciation3,978,823245,294(10,428)4,213,689
Total capital assets being depreciated - net5,808,425(212,833)(1,472)5,594,120
Business-type activities capital assets - net$6,746,344($140,357)($1,472)$6,604,515
Additional information on the City’s capital assets can be found in Note 4.
20
Managements Discussion and Analysis
’
Long-term debt
. At the end of the current fiscal year, the City had total bonded debt
outstanding of $11,425,000, a decrease of $295,000 from 2012.
Additional long-term debt in the amount of $242,685 for compensated absences was also
outstanding at the end of 2013.
City of Oak Park Heights’ Outstanding Debt
General obligation bonds, compensated absences and unamortized bond premium:
Governmental ActivitiesBusiness-Type ActivitiesTotals
201320122013201220132012
General obligation bonds$11,425,000$11,720,000$ - $ - $11,425,000$11,720,000
Compensated absences222,233212,17720,45235,169242,685247,346
Bond premium145,441155,137 - - 145,441155,137
Total$11,792,674$12,087,314$20,452$35,169$11,813,126$12,122,483
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 $19,235,070. 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 6.
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.
21
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22
BASIC FINANCIAL STATEMENTS
23
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24
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF NET POSITIONStatement 1
December 31, 2013
Primary Government
GovernmentalBusiness-Type
Assets:ActivitiesActivitiesTotal
Cash and investments$17,122,693$1,122,310$18,245,003
Cash with escrow agent5,063,118 - 5,063,118
Accrued interest receivable99,9087,484107,392
Accounts receivable - net138,909423,458562,367
Internal balances(211)211 -
Due from other governmental units389,068 - 389,068
Escrow deposit10,000 - 10,000
Prepaid items5,20134,02639,227
Taxes receivable101,334 - 101,334
Special assessments receivable18,509 - 18,509
Land held for resale111,000 - 111,000
Capital assets (net of accumulated depreciation):
Land2,239,364937,9193,177,283
Building and structures6,925,7861,237,6498,163,435
Other improvements1,238,463 - 1,238,463
Machinery and equipment261,247231,199492,446
Furniture and fixtures222,800 - 222,800
Infrastructure6,215,2824,125,27210,340,554
Construction in progress1,118,79772,4761,191,273
Total assets41,281,2688,192,00449,473,272
Liabilities:
Accounts payable647,30194,471741,772
Salaries payable6,3351,9968,331
Due to other governmental units153,1462,030155,176
Accrued interest payable15,945 - 15,945
Unearned revenue2,932 - 2,932
Compensated absences payable:
Due within one year45,7301,81747,547
Due in more than one year176,50318,635195,138
Other post employment benefits144,95219,753164,705
Bonds payable:
Due within one year324,696 - 324,696
Due in more than one year11,245,745 - 11,245,745
Total liabilities12,763,285138,70212,901,987
Net position:
Net investment in capital assets11,849,4466,604,51418,453,960
Restricted for:
Park improvements815,549 - 815,549
Other purposes26,661 - 26,661
Unrestricted15,826,3271,448,78817,275,115
Total net position$28,517,983$8,053,302$36,571,285
The accompanying notes are an integral part of these financial statements.
25
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2013
Program Revenues
Charges For
Functions/ProgramsExpensesServices
Primary government:
Governmental activities:
General government$1,601,402$305,590
Public safety1,497,765255,169
Public works1,080,43733,509
Parks and recreation269,929 -
Interest on long-term debt463,537 -
Total governmental activities4,913,070594,268
Business-type activities:
Water468,932720,590
Sanitary sewer695,817833,063
Storm sewer58,23988,063
Total business-type activities1,222,9881,641,716
Total primary government$6,136,058$2,235,984
The accompanying notes are an integral part of these financial statements.
26
Statement 2
Net (Expense) Revenue and
Program RevenuesChanges in Net Position
Primary Government
OperatingCapital
Grants andGrants andGovernmentalBusiness-Type
ContributionsContributionsActivitiesActivitiesTotal
$ - $ - ($1,295,812)$ - ($1,295,812)
89,359 - (1,153,237) - (1,153,237)
9,812341,491(695,625) - (695,625)
- 500(269,429) - (269,429)
- - (463,537) - (463,537)
99,171341,991(3,877,640)0(3,877,640)
- - - 251,658251,658
- - - 137,246137,246
- 23,234 - 53,05853,058
023,2340441,962441,962
$99,171$365,225(3,877,640)441,962(3,435,678)
General revenues:
General property taxes4,434,179 - 4,434,179
Tax increment106,924 - 106,924
Grants and contributions not
restricted to specific programs2,040 - 2,040
Unrestricted investment earnings(85,474)(7,026)(92,500)
Gain (loss) on sale of capital assets1,956(1,472)484
Other revenue26,526 - 26,526
Transfers406,380(406,380) -
Total general revenues
and transfers4,892,531(414,878)4,477,653
Change in net position1,014,89127,0841,041,975
Net position - January 1,
as previously reported27,421,5678,026,21835,447,785
Prior period adjustment81,525 - 81,525
Net position - January 1, as restated27,503,0928,026,21835,529,310
Net position - December 31$28,517,983$8,053,302$36,571,285
The accompanying notes are an integral part of these financial statements.
27
CITY OF OAK PARK HEIGHTS, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2013
528 G.O. CIP
Refunding Bonds
General Fundof 2012A
Assets
Cash and investments$3,643,812$14,849
Cash with escrow agent - 5,063,118
Accrued interest receivable17,35795
Accounts receivable - net134,478 -
Due from other governmental units47,398 -
Escrow deposit - -
Prepaid items5,201 -
Taxes receivable:
Delinquent101,334 -
Due from county - -
Special assessments receivable - -
Land held for resale - -
Total assets$3,949,580$5,078,062
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable$156,925$ -
Salaries payable6,335 -
Due to other governmental units153,115 -
Deposits payable17,500 -
Unearned revenue - -
Total liabilities333,8750
Deferred inflows of resources:
Unavailable revenue101,334 -
Fund balance:
Nonspendable5,201 -
Restricted - 5,078,062
Assigned173,000 -
Unassigned3,336,170 -
Total fund balance3,514,3715,078,062
Total liabilities, deferred inflows of resources, and fund balance$3,949,580$5,078,062
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 reported as
unavailable revenues 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.
28
Statement 3
710 Renewal and Other
500 Capital 565 Street Replacement Capital Governmental
Revolving FundReconstructionProject FundFundsTotal Governmental Funds
20132012
$451,901$2,775,511$4,482,641$5,753,979$17,122,693$16,334,800
- - - - 5,063,1185,179,790
2,40316,30829,21334,53299,908107,576
- - - 4,431138,90912,787
341,670 - - - 389,06857,951
- - - 10,00010,000 -
- - - - 5,2014,609
- - - - 101,334100,357
- - - - - 104,485
18,509 - - - 18,50937,019
- - - 111,000111,000111,000
$814,483$2,791,819$4,511,854$5,913,942$23,059,740$22,050,374
$141,828$280,214$ - $51,045$630,012$253,504
- - - - 6,3355,342
- - - 31153,1461,667
- - - - 17,5003,000
- - - 2,9322,932 -
141,828280,214054,008809,925263,513
356,779 - - 111,000569,113248,376
- - - - 5,2014,609
- - - 956,6876,034,7496,192,222
315,8762,511,6054,511,8544,792,24712,304,58211,841,630
- - - - 3,336,1703,500,024
315,8762,511,6054,511,8545,748,93421,680,70221,538,485
$814,483$2,791,819$4,511,854$5,913,942$23,059,740$22,050,374
$21,680,702$21,538,485
18,221,73917,752,202
569,113358,499
(11,570,441)(11,875,137)
(222,233)(212,177)
(144,952)(125,034)
(15,945)(15,271)
$28,517,983$27,421,567
The accompanying notes are an integral part of these financial statements.
29
CITY OF OAK PARK HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2013
528 G.O. CIP
Refunding Bonds of
General Fund2012A
Revenues:
General property taxes$4,433,202$ -
Tax increment - -
Special assessments - -
Licenses and permits90,910 -
Intergovernmental96,587 -
Charges for services304,403 -
Fines and forfeits51,360 -
Investment income(23,982)(7,897)
Refunds and reimbursements135,364 -
Donations and contributions500 -
Total revenues5,088,344 (7,897)
Expenditures:
Current:
General government1,279,394 -
Public safety1,437,141 -
Public works606,680 -
Parks and recreation135,756 -
Capital outlay - -
Debt service:
Principal - -
Interest - 108,831
Bond issuance costs - -
Total expenditures3,458,971 108,831
Revenues over (under) expenditures1,629,373 (116,728)
Other financing sources (uses):
Sale of capital assets2,000 -
Issuance of refunding bonds - -
Bond premium - -
Transfers in - -
Transfers out(1,868,160) -
Total other financing sources (uses)(1,866,160)0
Net change in fund balance(236,787)(116,728)
Fund balance - January 1, as previously reported3,669,6335,194,790
Prior period adjustment81,525 -
Fund balance - January 1, as restated3,751,1585,194,790
Fund balance - December 31$3,514,371$5,078,062
The accompanying notes are an integral part of these financial statements.
30
Statement 4
710 Renewal
and Replacement Other
500 Capital 565 Street Capital Project GovernmentalIntra-Activity
Revolving FundReconstructionFundFundsEliminationsTotal Governmental Funds
20132012
$ - $ - $ - $ - $ - $4,433,202$4,245,360
- - - 106,924 - 106,92426,583
20,731 - - - - 20,73121,906
- - - - - 90,910163,986
1,000 - - 4,624 - 102,211114,952
- - - 33,509 - 337,91249,441
- - - 5,248 - 56,60856,709
(2,540)(12,896)(12,982)(25,177) - (85,474)204,422
- - - - - 135,364154,415
- - - - - 500400
19,191 (12,896)(12,982)125,128 0 5,198,888 5,038,174
- - - 99,497 - 1,378,8911,195,121
- - - 11,962 - 1,449,1031,394,586
18,093159,374 - 21,629 - 805,776737,001
- - - 16,305 - 152,061132,497
430,764145,876422,192104,477 - 1,103,309160,856
- - - 295,000 - 295,000275,000
- - - 253,605 - 362,436260,680
- - - - - - 103,854
448,857 305,250 422,192 802,475 0 5,546,576 4,259,595
(429,666)(318,146)(435,174)(677,347)0 (347,688)778,579
- - - - - 2,00024,418
- - - - - - 5,140,000
- - - - - - 155,137
536,000337,225262,1581,139,157 - 2,274,540408,914
- - - - - (1,868,160) -
536,000 337,225 262,158 1,139,157 0 408,380 5,728,469
106,334 19,079 (173,016)461,810 0 60,692 6,507,048
209,5422,492,5264,684,8705,287,124 - 21,538,48515,031,437
- - - - - 81,525 -
209,5422,492,5264,684,8705,287,124 - 21,620,01015,031,437
$315,876$2,511,605$4,511,854$5,748,934$0$21,680,702$21,538,485
The accompanying notes are an integral part of these financial statements.
31
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, 2013
20132012
Amounts reported for governmental activities in the
statement of activities are different because:
Net changes in fund balances - total governmental funds (Statement 4)$60,692$6,507,048
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(751,452)(744,282)
Capital outlay1,103,309160,856
Other various transactions relating to capital assets:
Transfer of asset from business-type activities - 95,325
Donation of capital assets - 20,000
Adjustment of land434 -
Book value of capital assets sold, less trade-in value received(44)(16,133)
Capitalization of prior year construction in progress117,290 -
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 receivable97717,623
Change in deferred special assessments receivable(18,510)(18,510)
Change in value of land held for resale - (57,518)
Change in unavailable grant receivable338,270 -
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
position. The amount of this difference is:
Principal payments on bonds payable295,000275,000
Issuance of refunding bonds - (5,140,000)
Bond premium9,696(155,137)
Elimination of bond issuance costs(110,123) -
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)
Change in compensated absences payable(10,056)14,244
Change in other post employment benefits(19,918)(16,684)
Change in accrued interest payable(674)(4,409)
Change in net position of governmental activities (Statement 2)$1,014,891$928,653
The accompanying notes are an integral part of these financial statements.
32
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 6
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2013
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility
Utility FundUtility FundFundTotals
20132012
Assets:
Current assets:
Cash and cash equivalents$660,585$379,053$82,672$1,122,310$919,948
Accrued interest receivable4,1902,7994957,4847,522
Accounts receivable:
Customers143,944197,23420,844362,022361,434
Certified to County21,70220,67319,27261,64744,298
Due from other governmental units - - - - 1,990
Prepaid items - 34,026 - 34,02632,883
Total current assets830,421 633,785 123,283 1,587,489 1,368,075
Noncurrent assets:
Capital assets:
Land937,919 - - 937,919937,919
Buildings and structures2,003,68243,983 - 2,047,6652,047,665
Machinery and equipment442,1166,599 - 448,715428,154
Distribution and collection system3,308,9444,002,485 - 7,311,4297,311,429
Construction in progress72,476 - - 72,476 -
Total capital assets6,765,137 4,053,067 0 10,818,204 10,725,167
Less: Allowance for depreciation(2,425,136)(1,788,553) - (4,213,689)(3,978,823)
Net capital assets4,340,0012,264,51406,604,5156,746,344
Total noncurrent assets4,340,0012,264,51406,604,5156,746,344
Total assets5,170,4222,898,299123,2838,192,0048,114,419
Liabilities:
Current liabilities:
Accounts payable83,0711,21518584,47126,171
Deposits payable10,000 - - 10,000 -
Salaries payable1,091905 - 1,9961,877
Due to other governmental units2,030 - - 2,0307,070
Compensated absences payable - current portion1,0656431091,8172,448
Total current liabilities97,257 2,763 294 100,314 37,566
Noncurrent liabilities:
Compensated absences payable - noncurrent portion10,9216,5921,12218,63532,721
Other post employment benefits11,1617,0861,50619,75317,914
Noncurrent liabilities22,08213,6782,62838,38850,635
Total liabilities119,33916,4412,922138,70288,201
Net position:
Net investment in capital assets4,340,0002,264,514 - 6,604,5146,746,344
Unrestricted711,083617,344120,3611,448,7881,279,874
Total net position$5,051,083$2,881,858$120,361$8,053,302$8,026,218
The accompanying notes are an integral part of these financial statements.
33
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, 2013
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility
Utility FundUtility FundFund
Totals
20132012
Operating revenues:
Customer billings$705,595$823,129$82,744$1,611,468$1,569,924
Penalties7,2909,28681917,39516,935
Meter sales3,019 - - 3,0195,343
Charges for services420140 - 5603,653
Refunds and reimbursements4,2665084,5009,2742,848
Total operating revenues720,590 833,063 88,063 1,641,716 1,598,703
Operating expenses:
Personal services198,594125,80921,822346,225341,492
Contractual services89,31984,59131,509205,419199,325
MCES charges - 394,600 - 394,600361,271
Materials and supplies19,9236,61972827,27032,270
Administrative and personnel charges - - 4,1804,1803,830
Depreciation161,09684,198 - 245,294244,235
Total operating expenses468,932 695,817 58,239 1,222,988 1,182,423
Operating income251,658 137,246 29,824 418,728 416,280
Nonoperating revenues (expenses):
Earnings on investments(4,638)(2,013)(375)(7,026)14,046
Other - - 23,23423,234(95,325)
(Loss) on disposal of capital assets(1,472) - - (1,472)(335)
Total nonoperating revenues (expenses)(6,110)(2,013)22,85914,736(81,614)
Income before contributions and transfers245,548135,23352,683433,464334,666
Transfers:
Transfers to other funds(237,123)(165,840)(3,417)(406,380)(408,914)
Total transfers and contributions(237,123)(165,840)(3,417)(406,380)(408,914)
Change in net position8,425(30,607)49,26627,084(74,248)
Net position - January 15,042,6582,912,46571,0958,026,2188,100,466
Net position - December 31$5,051,083$2,881,858$120,361$8,053,302$8,026,218
The accompanying notes are an integral part of these financial statements.
34
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 8
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2013
Business-Type Activities Enterprise Funds
707 Storm
705 Water 706 Sewer Sewer Utility
Utility FundUtility FundFundTotals
20132012
Cash flows from operating activities:
Receipts from customers and users$723,534$831,455$70,780$1,625,769$1,581,541
Payment to suppliers(34,076)(490,557)(44,719)(569,352)(692,841)
Payment to employees(205,826)(130,671)(22,487)(358,984)(338,402)
Net cash flows provided by (used in) operating activities483,632210,2273,574697,433550,298
Cash flows from noncapital financing activities:
Transfer to other funds(237,123)(165,840)(3,417)(406,380)(408,914)
Cash flows from capital and related
financing activities:
Acquisition of capital assets(104,937) - - (104,937)(121,452)
Cash flows from investing activities:
Investment income(5,187)(1,852)51(6,988)16,726
Net increase (decrease) in cash and cash equivalents136,38542,535208179,12836,658
Cash and cash equivalents - January 1524,200336,51859,230919,948883,290
Cash and cash equivalents - December 31$660,585 $379,053 $59,438 $1,099,076 $919,948
Reconciliation of operating income to net
cash provided by operating activities:
Operating income$251,658$137,246$29,824$418,728$416,280
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities:
Depreciation161,09684,198 - 245,294244,235
Changes in assets and liabilities:
Decrease (increase) in receivables2,944(1,608)(17,283)(15,947)(17,162)
Decrease (increase) in prepaid expenses - (1,143) - (1,143)(2,777)
Increase (decrease) in payables67,934(8,466)(8,967)50,501(90,278)
Total adjustments231,974 72,981 (26,250)278,705 134,018
Net cash provided by (used in) operating activities$483,632$210,227$3,574$697,433$550,298
The accompanying notes are an integral part of these financial statements.
35
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 9
STATEMENT OF FIDUCIARY NET POSITION
AGENCY FUNDS
December 31, 2013
20132012
Assets:
Cash and investments$238,004$225,031
Due from developers25,1845,377
Total assets263,188230,408
Liabilities:
Escrow deposits payable136,000136,000
Accounts payable1,9632,872
Due to developers125,22591,536
Total liabilities263,188230,408
Net position:
Unrestricted$0$0
The accompanying notes are an integral part of these financial statements.
36
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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 for 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 position and the statement of
changes in net position) 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.
37
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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.
38
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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.
39
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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.
40
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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 inflows of
resources because they are not available to finance current expenditures.
41
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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 inflows of
resources.
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.
42
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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, 2013, 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 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.
43
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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 position. Bond premiums
and discounts are amortized over the life of the bond.
In the fund financial statements, governmental fund types recognize bond premiums and discounts
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.
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.
44
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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, 2012, from which the summarized information was derived.
T.DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position that applies to a future period(s) and so will not be
recognized as an outflow of resources (expense/expenditure) until then. The City has no items that
qualify for reporting in this category.
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be recognized
as an inflow of resources (revenue) until that time. The City has one type of item, which arises only
under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly,
the item, unavailable revenue, is reported only in the governmental fund balance sheet. The
governmental funds report unavailable revenues from the following sources: property taxes, special
assessments, land held for resale, and unavailable grant revenue.
45
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 2 DEPOSITS AND INVESTMENTS
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized
by the City Council, all of which are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral.
The market value of collateral pledged must equal 110% of the deposits not covered by insurance or
bonds.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City
Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral
includes the following:
a)United States government treasury bills, treasury notes, treasury bonds;
b)Issues of United States government agencies and instrumentalities as quoted by a recognized
industry quotation service available to the government entity;
c)General obligation securities of any state or local government with taxing powers which is rated
“A” or better by a national bond rating service, or revenue obligation securities of any state or local
government with taxing powers which is rated “AA” or better by a national bond rating service;
d)Unrated general obligation securities of a local government with taxing powers may be pledged as
collateral against funds deposited by that same local government entity;
e)Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality
accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s
Investors Service, Inc. or Standard & Poor’s Corporation; and
f)Time deposits that are fully insured by any Federal agency.
At December 31, 2013 the carrying amount of the City’s deposits with financial institutions was
$6,847,251.
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, 2013, the bank balance of the City’s deposits was
$7,078,421, 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.
46
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
B. INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its
instrumentalities or organizations created by an act of congress, excluding mortgage-backed
securities defined as high risk.
b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and
whose only investments are in securities described in (a) above, general obligation tax-exempt
securities, or repurchase or reverse repurchase agreements.
c) Obligations of the State of Minnesota or any of its municipalities as follows:
1)any security which is a general obligation of any state or local government with taxing powers
which is rated “A” or better by a national bond rating service;
2)any security which is a revenue obligation of any state or local government with taxing powers
which is rated “AA” or better by a national bond rating service; and
3)a general obligation of the Minnesota housing finance agency which is a moral obligation of
the State of Minnesota and is rated “A” or better by a national bond rating agency.
d) Bankers’ acceptance of United States banks eligible for purchase by the Federal Reserve System.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the
highest quality, and maturing in 270 days or less.
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers;
or, a bank qualified as a depositor.
g) General obligation temporary bonds of the same governmental entity issued under section 429.091,
subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6.
47
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
As of December 31, 2013 the City had the following investments and maturities:
Investment Maturities (in Years)
FairLess
Investment TypeRatingValueThan 11-56-10
Federal National Mortgage Assn. NotesAaa$5,063,118$ - $5,063,118$ -
Federal Home Loan Mortgage Corp. NotesAaa - - - -
Federal Home Loan Bank NotesAaa5,728,678 - 98,6765,630,002
Brokered certificates of depositNR3,887,2131,981,0351,716,638189,540
External investment pool - 4M FundNR2,019,7652,019,765 - -
Total$16,698,774$4,000,800$6,878,432$5,819,542
NR - Not RatedTotal investments$16,698,774
Deposits6,847,251
Petty cash100
Total cash and investments$23,546,125
The Minnesota Municipal Money Market Fund (4M Fund) is regulated by Minnesota Statutes and the Board
of Directors of the League of Minnesota Cities and is an external investment pool not registered with the
Securities Exchange Commission (SEC) that follows the same regulatory rules of the SEC under rule 2a7.
The fair value of the position in the pool is the same as the value of the pool shares.
Following is a reconciliation of the City’s cash and investment balances as of December 31, 2013:
Cash and investments:
Governmental and business-type (Statement 1)$18,245,003
Fiduciary (Statement 9)238,004
Cash with escrow agent5,063,118
Total cash and investments$23,546,125
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.
48
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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 one of the top two highest
categories; repurchase or reverse purchase agreements and securities lending agreements with financial
institutions qualified as a “depository” by the government entity, with banks that are members of the
Federal Reserve System with capitalization exceeding $10,000,000, that are a primary reporting dealer
in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota
securities brokers-dealers. The City’s investment policy does not place further restrictions on
investment options.
Concentration of credit risk – 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, 2013, more than 5% of the City’s cash and
investments are in the following governmental agencies: Federal National Mortgage Association (21%)
and Federal Home Loan Bank (24%).
49
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2013 are as
follows:
Storm Sewer
Utility
GeneralFundTotal
Delinquent property taxes$50,823$ - $50,823
Deferred special assessments - 15,24715,247
Total$50,823$15,247$66,070
Note 4 UNAVAILABLE REVENUE
Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. As of the end of the current fiscal year,
the various components of unavailable revenue reported in the governmental funds were as follows:
Unavailable
Property Special Land HeldGrant
TaxesAssesmentsfor ResaleRevenueTotal
Major funds:
General Fund$101,334$ - $ - $ - $101,334
Capital Revolving Fund - 18,509 - 338,270356,779
Nonmajor funds - - 111,000 - 111,000
Total unavailable revenue$101,334$18,509$111,000$338,270$569,113
50
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2013 was as follows:
BeginningEnding
BalanceIncreasesDecreasesBalance
Governmental activities:
Capital assets, not being depreciated:
Land$2,238,930$434$ - $2,239,364
Construction in progress2,6751,116,122 - 1,118,797
Total capital assets, not being depreciated2,241,6051,116,55603,358,161
Capital assets, being depreciated:
Buildings and structures7,540,25034,459(11,048)7,563,661
Other improvements1,529,55921,900(7,090)1,544,369
Machinery and equipment581,644 - (8,000)573,644
Furniture and fixtures419,86242,116(43,471)418,507
Infrastructure12,907,27120,856 - 12,928,127
Total capital assets, being depreciated22,978,586119,331(69,609)23,028,308
Less accumulated depreciation for:
Buildings and structures468,137180,786(11,048)637,875
Other improvements267,06645,929(7,090)305,905
Machinery and equipment261,83758,560(8,000)312,397
Furniture and fixtures181,98942,291(28,573)195,707
Infrastructure6,288,960423,885 - 6,712,845
Total accumulated depreciation7,467,989751,451(54,711)8,164,729
Total capital assets being depreciated - net15,510,597(632,120)(14,898)14,863,579
Governmental activities capital assets - net$17,752,202$484,436($14,898)$18,221,740
51
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
BeginningEnding
BalanceIncreasesDecreasesBalance
Business-type activities:
Capital assets, not being depreciated:
Land$937,919$ - $ - $937,919
Construction in progress - 72,476 - 72,476
Total capital assets, not being depreciated937,91972,47601,010,395
Capital assets, being depreciated:
Buildings and structures2,047,665 - - 2,047,665
Machinery and equipment428,15432,461(11,900)448,715
Infrastructure7,311,429 - - 7,311,429
Total capital assets, being depreciated9,787,24832,461(11,900)9,807,809
Less accumulated depreciation for:
Buildings and structures733,16076,856 - 810,016
Machinery and equipment207,12920,815(10,428)217,516
Infrastructure3,038,534147,623 - 3,186,157
Less accumulated depreciation3,978,823245,294(10,428)4,213,689
Total capital assets being depreciated - net5,808,425(212,833)(1,472)5,594,120
Business-type activities capital assets - net$6,746,344($140,357)($1,472)$6,604,515
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government$204,284
Public safety34,796
Public works393,552
Recreation118,820
Total depreciation expense - governmental activities$751,452
Business-type activities:
Water$161,096
Sewer84,198
Total depreciation expense - business-type activities$245,294
52
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 6 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, 2013, the long-term debt of the financial reporting entity consisted of the following:
FinalAuthorized
Issue Maturity Interest AndOutstanding
DateDateRateIssued12/31/13
Governmental activities:
Improvement bonds:
G.O. Capital Improvement Bonds, Series 2008A06/15/0812/15/282.5 - 4.4$6,300,000$5,505,000
G.O. Capital Improvement Bonds, Series 2009A09/15/0912/15/191.2 - 3.551,195,000780,000
G.O. CIP Refunding Bonds, Series 2012A12/01/1212/15/282.0 - 2.155,140,0005,140,000
Bond premium155,137145,441
Compensated absences payable222,233
Total governmental activities11,792,674
Business-type activities:
Compensated absences payable20,452
Total City indebtedness$11,813,126
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
2014$200,000$222,018$ - $104,758$115,000$23,560$315,000$350,336
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$5,505,000$645,436$5,140,000$1,077,927$780,000$91,620$11,425,000$1,814,983
It is not practicable to determine the specific year for payment of accrued compensated absences.
53
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Change in Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2013, was as follows:
BalanceBalanceDue Within
01/01/13AdditionsReductions12/31/13One Year
Governmental Activities:
Bonded debt:
Improvement bonds$6,580,000$ - ($295,000)$6,285,000$315,000
CIP refunding bonds5,140,000 - - 5,140,000 -
Bond premium155,137 - (9,696)145,4419,096
Compensated absences212,17784,772(74,716)222,23345,730
Total governmental activities$12,087,314$84,772($379,412)$11,792,674$369,826
Business-Type Activities:
Compensated absences$37,380$11,901($28,829)$20,452$1,818
Total business-type activities$37,380$11,901($28,829)$20,452$1,818
For governmental activities, compensated absences are generally liquidated by the General Fund. All long-
term bonded indebtedness outstanding at December 31, 2013 is backed by the full faith and credit of the
City, including improvement bond issues. Delinquent taxes receivable at December 31, 2013 were
$101,334.
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 $5,063,118 at December 31, 2013.
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.
54
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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
2014$422,018$104,758$104,758$422,018
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$6,150,436$6,217,927$5,174,274$7,194,089
Revenues Pledged
Revenue PledgedCurrent Year
Percent ofRemainingPrincipalPledged
Use ofTotalTerm ofPrincipaland InterestRevenue
Bond IssueProceedsTypeDebt ServicePledgeand InterestPaidReceived
2008ACity hall constructionProperty taxes100%2009 - 2028$6,150,439$412,845$410,000
2009ACity hall constructionProperty taxes100%2010 - 2019$871,620$135,760$138,000
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.
55
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 7 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 9.1% and 6.25%, respectively, of their annual
covered salary in 2013. PEPFF members were required to contribute 9.6% of their annual covered
salary in 2013. The City was required to contribute the following percentages of annual covered
payroll in 2013: 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, 2013, 2012 and 2011 were $53,186, $52,387, and $52,289, respectively. The
City’s contributions to the Public Employees Police and Fire Fund for the years ending December 31,
2013, 2012 and 2011 were $116,026, $108,683, and $106,220, respectively. The City’s contributions
were equal to the contractually required contributions for each year as set by state statute.
56
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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
$11,154 for the year ended December 31, 2013.
Note 8 OTHER POST-EMPLOYMENT BENEFITS
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.
57
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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, 2013, was calculated as follows:
Annual required contribution (ARC)$34,923
Interest on net OPEB obligation5,719
Adjustment to ARC(8,267)
Annual OPEB cost32,375
Contributions made during the year(10,618)
Increase in net OPEB obligation21,757
Net OPEB obligation - beginning of year142,948
Net OPEB obligation - end of year$164,705
The net OPEB obligation is allocated as follows:
Governmental activities$144,952
Business-type activities19,753
$164,705
For governmental activities, the net OPEB obligation is generally liquidated by the General Fund.
58
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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, 2011$58,548$23,17739.6%$121,007
December 31, 201231,6839,74230.7%142,948
December 31, 201332,37410,61832.8%164,705
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
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.
59
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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, 2013, was 26 years.
Note 9 INTERFUND TRANSFERS
Transfers In
Major Funds
CapitalStreet Renewal and Nonmajor
RevolvingReconstructionReplacement Governmental
Total
FundFundFund Funds
Transfers out:
Governmental activities:
General Fund$536,000$337,225$20,700$974,235$1,868,160
Business-type activities:
Water Utility Fund - - 114,556122,567237,123
Sewer Utility Fund - - 126,90238,938165,840
Storm Sewer Utility Fund - - - 3,4173,417
Total transfers$536,000$337,225$262,158$1,139,157$2,274,540
During 2013, the City made routine interfund transfers to accumulate resources to be used for capital
improvements and to fund debt service expenditures.
Note 10 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 as well as participate
in other costs as a result of the Project. Accordingly, the City at the request of MNDOT and the State of
Minnesota has entered into agreements with MNDOT for the portions of the impacted relocations or
improvements and all related soft costs and expenses to the present utility systems and for any related costs
as a result of the Project in total. The estimated cost to the City for all costs is anticipated to be a total cost
of $600,000 and is dependent on the final timing to be determined by MNDOT and their contractors.
60
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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, 2013.
Note 11 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; and natural disasters.
Workers compensation coverage is provided through a pooled self-insurance program through the League of
Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject
to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers
Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not
subject to a deductible. The City’s workers compensation coverage is retrospectively rated. With this type of
coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if
any, is considered immaterial and not recorded until received or paid.
Property and casualty insurance coverage is provided through a pooled self-insurance program through the
LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if
deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess
various amounts. The City retains risk for deductible portions. These deductibles are considered immaterial to
the financial statements.
Employee health and disability insurance is provided through commercial insurance. The City does not have a
deductible or yearly maximum on this insurance.
There were no significant reductions in insurance from the previous year or settlements in excess of insurance
coverage for any of the past three fiscal years.
61
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 12 FUND BALANCE
A.CLASSIFICATIONS
Definitions of fund balance classifications are included in Note 1.O. At December 31, 2013, a
summary of the governmental fund balance classifications are as follows:
G.O. CIP
RefundingCapitalRenewal andOther
Bonds ofStreetRevolvingReplacementGovernmental
General Fund2012AReconstructionFundFundFundsTotal
Nonspendable:
Prepaid items$5,201$ - $ - $ - $ - $ - $5,201
Restricted for:
Law enforcement - - - - - 7,3307,330
Tax increment - - - - - 19,33119,331
Debt service - 5,078,062 - - - 114,4775,192,539
Park improvements - - - - - 256,187256,187
Moelter Park improvements - - - - - 559,362559,362
Total restricted05,078,062000559,3626,034,749
Assigned for:
Compensated absences173,000 - - - - - 173,000
Capital purposes - - - 315,8764,511,8544,760,9239,588,653
Street reconstruction - - 2,511,605 - - - 2,511,605
Economic development - - - - - 31,32431,324
Total assigned173,00002,511,605315,8764,511,8544,792,24712,304,582
Unassigned3,336,170 - - - - - 3,336,170
Total$3,514,371$5,078,062$2,511,605$315,876$4,511,854$5,351,609$21,680,702
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.
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, 2013, the unassigned fund balance of the General Fund was $3,336,170, which
sufficiently meets the cash flow and emergency needs described above.
62
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 13 MAJOR TAXPAYER
The City has one major taxpayer, Xcel Energy. The total tax capacity value for this taxpayer represented
approximately 41% of the City's total tax capacity value for taxes payable in 2013.
Note 14 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, 2013 the principal amount outstanding on
the note was $1,200,000.
Note 15 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, 2013, there were three series of Industrial Revenue Bonds outstanding. The principal
amount payable at December 31, 2013 was $95,130,000.
63
CITY OF OAK PARK HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 16 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:
2013
LeaseAnnual LeaseExpirationRenewal
LocationLesseeAmountAdjustment Factor*DateOptions
58th and NorrellSprint PCS$33,509Greater of CPI or 5%9/20/20142 5-year terms
*Amounts for future lease receipts are unavailable because they are based on the Consumer Price Index.
Note 17 PRIOR PERIOD ADJUSTMENT
On January 1, 2013, the City recorded prior period adjustements in the General Fund. Revenues and fund
balance previously reported were understated due to unrecorded servicing fees. Beginning fund balance has
been restated as follows:
General
Fund
Fund balance - January 1, as previously reported$3,669,633
Prior period adjustment81,525
Fund balance - January 1, as restated$3,751,158
Note 18 CHANGE IN ACCOUNTING PRINCIPLE
For the year ended December 31, 2013, the City implemented GASB Statements No. 61 and 65. GASB
Statement No. 61, The Financial Reporting Entity: Omnibus – An Amendment of GASB No. 14 and No.34
modifies certain requirements for inclusion of component units in the financial reporting entity and also amends
the criteria for reporting component units as if they were part of the primary government (i.e. blending). GASB
Statement No. 65, Items Previously Reported as Assets and Liabilities resulted in accounts previously presented
as liabilities being reclassified as deferred inflows of resources.
64
REQUIRED SUPPLEMENTARY INFORMATION
65
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 1 of 4
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
Variance
with Final
Budget -
2013 Actual Positive2012 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Revenues:
Property taxes$4,538,193$4,538,193$4,546,471$8,278$4,179,856
Abatement of property taxes - - (182,996)(182,996) -
Payment in lieu of taxes65,50065,50069,7274,22765,504
Total property taxes4,603,6934,603,6934,433,202(170,491)4,245,360
Intergovernmental:
PERA aid2,0402,0402,040 - 2,040
Police aid50,00050,00070,03120,03161,242
Recycling grant11,00011,0009,812(1,188)9,312
Safe and Sober grant11,00011,00013,6862,6866,395
Other public works grants - - 1,0181,018 -
Total intergovernmental74,04074,04096,58722,54778,989
Licenses and permits49,85549,85590,91041,055163,986
Charges for services:
General government10,15010,150300,223290,07313,698
Administrative - Enterprise Fund4,1804,1804,180 - 3,830
Total charges for services14,33014,330304,403290,07317,528
Fines and forfeits50,50050,50051,36086055,023
Investment income - - (23,982)(23,982)36,791
Refunds and reimbursements101,000101,000135,36434,364140,940
Donations and contributions - - 500500 -
Total revenues4,893,4184,893,4185,088,344194,9264,738,617
Expenditures:
General government:
Mayor and city council:
Current:
Personal services60,32062,81557,3405,47557,141
Materials and supplies500500807(307)161
Other services and charges33,31033,31022,31210,99826,894
Total mayor and city council94,13096,62580,45916,16684,196
City administration:
Current:
Personal services201,845201,845190,60111,244178,689
Materials and supplies2,350$2,3502,1961541,210
Other services and charges47,20047,20038,6878,51337,696
Total City administration251,395251,395231,48419,911217,595
Legal:
Current:
Personal services30,00030,00017,07912,92115,087
General management and building:
Current:
Materials and supplies9,7009,7006,3423,3584,270
Other services and charges126,510126,510154,666(28,156)114,695
Total general management and building136,210136,210161,008(24,798)118,965
66
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 2 of 4
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
Variance
with Final
Budget -
2013 Actual Positive2012 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Expenditures: (continued)
General government: (continued)
Elections:
Current:
Personal services$ - $ - $876($876)$6,047
Materials and supplies - - 126(126)449
Other services and charges1,0701,070948122979
Total elections1,0701,0701,950(880)7,475
Finance:
Current:
Personal services222,453222,453213,9228,531207,213
Materials and supplies3,1503,1501,3911,7592,592
Other services and charges42,42142,42134,0508,37136,117
Total finance268,024268,024249,36318,661245,922
Computer system:
Current:
Materials and supplies5,9005,9003,2482,6521,504
Other services and charges29,90029,90022,5657,33519,684
Total computer system35,80035,80025,8139,98721,188
Audit:
Current:
Personal services28,20028,20028,490(290)32,647
Insurance:
Current:
Other services and charges379,448379,448359,53619,912330,515
Assessing:
Current:
Personal services22,18522,18522,349(164)21,627
Planning and zoning:
Current:
Personal services30,00030,00032,190(2,190)22,320
Materials and supplies200200300(100)300
Other services and charges1,8001,800910890825
Total planning and zoning32,00032,00033,400(1,400)23,445
Engineering:
Current:
Other services and charges27,85027,85013,85313,99711,771
General contingency:
Current:
Other services and charges17,50024,50054,610(30,110)8,245
Total general government1,323,8121,333,3071,279,39453,9131,138,678
67
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 3 of 4
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
Variance
with Final
Budget -
2013 Actual Positive2012 Actual
Amounts(Negative)Amounts
Budgeted Amounts
Expenditures: (continued)OriginalFinal
Public safety: (continued)
Police department:
Current:
Personal services$972,588$972,588$912,276$60,312$886,600
Materials and supplies57,07557,07550,3326,74342,387
Other services and charges209,567209,567194,91814,649174,933
Total police department1,239,2301,239,2301,157,52681,7041,103,920
Building inspections:
Current:
Personal services110,839110,83972,40538,43488,162
Materials and supplies2,2002,2008961,3041,150
Other services and charges25,76525,76513,20312,56223,757
Total building inspections138,804138,80486,50452,300113,069
Fire protection:
Current:
Materials and supplies2,0002,000 - 2,0002,000
Other services and charges193,000193,000190,6342,366158,380
Total fire protection195,000195,000190,6344,366160,380
Civil defense:
Current:
Other services and charges3,1003,1001,0752,02585
Animal control:
Current:
Materials and supplies150150678372
Other services and charges1,5001,5001,3351651,591
Total animal control1,6501,6501,4022481,663
Total public safety1,577,7841,577,7841,437,141140,6431,379,117
Public works:
Street maintenance:
Current:
Personal services25,86226,86224,3492,51320,999
Materials and supplies14,60014,60012,1072,49310,937
Other services and charges31,23231,23223,5417,69128,731
Total street maintenance71,69472,69459,99712,69760,667
Snow removal:
Current:
Materials and supplies1,0001,000122878643
Other services and charges131,810197,910222,981(25,071)94,519
Total snow removal132,810198,910223,103(24,193)95,162
Sanitation:
Current:
Other services and charges197,800197,800198,045(245)194,703
Street lighting:
Current:
Other services and charges70,50070,50068,1762,32462,993
68
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
Page 4 of 4
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
Variance
with Final
Budget -
2013 Actual Positive2012 Actual
Amounts(Negative)Amounts
Budgeted Amounts
OriginalFinal
Expenditures: (continued)
Public works: (continued)
Arborist:
Current:
Personal services$18,500$18,500$17,979$521$13,200
Materials and supplies100100226(126) -
Other services and charges25025020248150
Total arborist18,85018,85018,40744313,350
Tree removal and planting:
Current:
Other services and charges35,00035,00038,952(3,952)33,113
Total public works526,654593,754606,680(12,926)459,988
Parks and recreation:
Parks, playgrounds and rinks:
Current:
Personal services52,53852,53860,740(8,202)47,315
Materials and supplies17,70017,70022,746(5,046)19,421
Other services and charges83,47083,47052,27031,20053,219
Total parks and recreation153,708153,708135,75617,952119,955
Total expenditures3,581,9583,658,5533,458,971199,5823,097,738
Revenues over expenditures
1,311,4601,234,8651,629,373394,5081,640,879
Other financing sources (uses):
Sale of property - - 2,0002,00024,418
Transfers out(1,311,460)(1,868,160)(1,868,160) - (1,257,225)
Total other financing sources (uses)(1,311,460)(1,868,160)(1,866,160)2,000(1,232,807)
Net change in fund balance$0($633,295)(236,787)$396,508408,072
Fund balance - January 1, as previously reported 3,669,6333,261,561
Prior period adjustment81,525
Fund balance - January 1, restated3,751,158
Fund balance - December 31$3,514,371$3,669,633
69
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS - RETIREE HEALTH PLAN
For The Year Ended December 31, 2013
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.
70
CITY OF OAK PARK HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2013
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.
71
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72
COMBINING AND INDIVIDUAL NONMAJOR
FUND FINANCIAL STATEMENTS
73
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74
NONMAJOR GOVERNMENTAL FUNDS
75
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 11
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2013
With Comparative Totals For December 31, 2012
Totals
Nonmajor
SpecialDebtCapitalGovernmental Funds
AssetsRevenueServiceProject20132012
Cash and investments$80,091$113,484$5,560,404$5,753,979$5,294,412
Accrued interest receivable31499333,22534,53237,111
Accounts receivable - net4,431 - - 4,431 -
Due from developer10,000 - - 10,000 -
Due from other governmental units - - - - 8,091
Land held for resale111,000 - - 111,000111,000
Total assets$205,836$114,477$5,593,629$5,913,942$5,450,614
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$36,820$ - $14,225$51,045$52,490
Due to other governments31 - - 31 -
Unearned revenue - - 2,9322,932 -
Total liabilities36,851017,15754,00852,490
Deferred inflows of resources:
Unavailable revenue111,000 - - 111,000111,000
Fund balance:
Restricted26,661114,477815,549956,687997,432
Assigned31,324 - 4,760,9234,792,2474,289,692
Total fund balance57,985114,4775,576,4725,748,9345,287,124
Total liabilities, deferred inflows $205,836$114,477$5,593,629$5,913,942$5,450,614
of resources, and fund balance
76
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, 2013
With Comparative Totals For The Year Ended December 31, 2012
Totals
Special DebtCapitalNonmajor Governmental Funds
RevenueServiceProject20132012
Revenues:
Tax increment$106,924$ - $ - $106,924$26,583
Intergovernmental - - 4,6244,62411,963
Charges for services - - 33,50933,50931,913
Fines and forfeits5,248 - - 5,2481,686
Investment income(873)41(24,345)(25,177)69,304
Refunds and reimbursements - - - - 13,475
Donations and contributions - - - - 400
Total revenues111,299 41 13,788 125,128 155,324
Expenditures:
Current:
General government91,637 - 7,86099,49756,443
Public safety4,831 - 7,13111,96215,469
Public works - - 21,62921,629137,938
Parks and recreation - - 16,30516,30512,542
Capital outlay - - 104,477104,477158,181
Debt service:
Principal - 295,000 - 295,000275,000
Interest - 253,605 - 253,605260,680
Total expenditures96,468 548,605 157,402 802,475 916,253
Revenues over (under) expenditures14,831 (548,564)(143,614)(677,347)(760,929)
Other financing sources (uses):
Transfers in - 548,000591,1571,139,1571,097,928
Transfers out - - - - (9,094)
Total other financing sources (uses)0 548,000 591,157 1,139,157 1,088,834
Net change in fund balance14,831 (564)447,543 461,810 327,905
Fund balance - January 143,154115,0415,128,9295,287,1244,959,219
Fund balance - December 31$57,985$114,477$5,576,472$5,748,934$5,287,124
77
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 13
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2013
With Comparative Totals For December 31, 2012
202 Forfeiture 204 Economic 205 TIF
Totals Nonmajor Special
and SeizureDevelopmentDistrict #1
Revenue Funds
Assets20132012
Cash and investments$4,229$31,125$44,737$80,091$53,491
Accrued interest receivable3019985314297
Accounts receivable4,431 - - 4,431 -
Escrow deposit - - 10,00010,000 -
Land held for resale111,000 - 111,000111,000
Total assets$8,690$142,324$54,822$205,836$164,788
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$1,329$ - $35,491$36,820$10,634
Due to other governments31 - - 31 -
Total liabilities1,360 - 35,49136,85110,634
Deferred inflows of resources:
Unavailable revenue - 111,000 - 111,000111,000
Fund balance:
Restricted7,330 - 19,33126,66111,527
Assigned - 31,324 - 31,32431,627
Total fund balance7,33031,32419,33157,98543,154
Total liabilities, deferred infows $8,690$142,324$54,822$205,836$164,788
of resources, and fund balance
78
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 14
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
202 Forfeiture 204 Economic 205 TIF Totals Nonmajor Special
and SeizureDevelopmentDistrict #1Revenue Funds
20132012
Revenues:
Tax increment$ - $ - $106,924$106,924$26,583
Confiscated property5,248 - - 5,2481,686
Investment income(10)(115)(748)(873)555
Total revenues5,238 (115)106,176 111,299 28,824
Expenditures:
Current:
General government - 18891,44991,63722,007
Public safety4,831 - - 4,8313,016
Total expenditures4,831 188 91,449 96,468 25,023
Revenues over (under) expenditures407 (303)14,727 14,831 3,801
Fund balance - January 16,92331,6274,60443,15439,353
Fund balance - December 31$7,330$31,324$19,331$57,985$43,154
79
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 15
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2013
With Comparative Totals For December 31, 2012
526 G.O. 527 G.O.
CapitalCapital
ImprovementImprovement
Bonds of 2008Bonds of 2009Total Nonmajor Debt Service Funds
20132012
Assets
Cash and investments$94,477$19,007$113,484$113,890
Accrued interest receivable7542399931,151
Total assets$95,231 $19,246 $114,477 $115,041
Liabilities and Fund Balance
Liabilities$ - $ - $ - $ -
Fund balance:
Restricted95,23119,246114,477115,041
Total liabilities and fund balance$95,231 $19,246 $114,477 $115,041
80
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, 2013
With Comparative Totals For The Year Ended December 31, 2012
526 G.O. Capital 527 G.O. Capital
ImprovementImprovement
Bonds of 2008Bonds of 2009
Total Nonmajor Debt Service Funds
20132012
Revenues:
Investment income($92)$133$41$2,150
Expenditures:
Debt service:
Principal185,000110,000295,000275,000
Interest227,84525,760253,605260,680
Total expenditures412,845135,760548,605535,680
Revenues over (under) expenditures(412,937)(135,627)(548,564)(533,530)
Other financing sources (uses):
Transfers in410,000138,000548,000536,000
Net change in fund balance(2,937)2,373(564)2,470
Fund balance - January 198,16816,873115,041112,571
Fund balance - December 31$95,231 $19,246 $114,477 $115,041
81
CITY OF OAK PARK HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2013
With Comparative Totals For December 31, 2012
401 Budgeted 712 Storm
Projects and Sewer Renewal
Equipment405 Park 407 Moelter 572 City Hall / Replacement
RevolvingDevelopmentParkImprovementsFund
Assets
Cash and investments$1,547,812$693,781$587,856$95,141$480,283
Accrued interest receivable8,1224,6783,7576432,702
Due from other governments - - - - -
Total assets$1,555,934 $698,459 $591,613 $95,784 $482,985
Liabilities and Fund Balance
Liabilities:
Accounts payable$14,225$ - $ - $ - $ -
Unearned revenue - - - - -
Total liabilities14,225 0 0 0 0
Fund balance:
Restricted - 256,187559,362 - -
Assigned1,541,709442,27232,25195,784482,985
Total fund balance1,541,709 698,459 591,613 95,784 482,985
Total liabilities and fund balance $1,555,934 $698,459 $591,613 $95,784 $482,985
82
Statement 17
734 Water 771 Sanitary 773 AAE -
Tower735 Well 736 Sewer Sewer772 Water Storm Sewer
Totals Nonmajor Capital Project
RehabilitationRehabilitationRehabilitationConnectionConnectionConnection
Funds
20132012
$201,518$120,323$47,607$408,854$437,033$940,196$5,560,404$5,127,031
9276842922,6142,7946,01233,22535,663
- - - - - - - 8,091
$202,445 $121,007 $47,899 $411,468 $439,827 $946,208 $5,593,629 $5,170,785
$ - $ - $ - $ - $ - $ - $14,225$41,856
2,932 - - - - - 2,932 -
2,932 0 0 0 0 0 17,157 41,856
- - - - - - 815,549870,864
199,513121,00747,899411,468439,827946,2084,760,9234,258,065
199,513 121,007 47,899 411,468 439,827 946,208 5,576,472 5,128,929
$202,445 $121,007 $47,899 $411,468 $439,827 $946,208 $5,593,629 $5,170,785
83
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, 2013
With Comparative Totals For The Year Ended December 31, 2012
401 Budgeted 712 Storm
Projects and Sewer Renewal
Equipment405 Park 407 Moelter 572 City Hall / Replacement
RevolvingDevelopmentParkImprovementsFund
Revenues:
Intergovernmental$4,624$ - $ - $ - $ -
Charges for services:
Rents - - - - -
Investment income(9,198)(2,183)(2,193)(295)(2,441)
Refunds and reimbursements - - - - -
Donations and contributions - - - - -
Total revenues(4,574)(2,183)(2,193)(295)(2,441)
Expenditures:
Current:
General government7,860 - - - -
Public safety7,131 - - - -
Public works21,539 - - - -
Parks and recreation16,305 - - - -
Capital outlay40,26255,315 - 8,900 -
Total expenditures93,09755,31508,9000
Revenues over (under) expenditures(97,671)(57,498)(2,193)(9,195)(2,441)
Other financing sources (uses):
Transfers in455,234 - - - 80,185
Transfers out - - - - -
Total other financing sources (uses)455,23400080,185
Net change in fund balance357,563(57,498)(2,193)(9,195)77,744
Fund balance - January 11,184,146755,957593,806104,979405,241
Fund balance - December 31$1,541,709 $698,459 $591,613 $95,784 $482,985
84
Statement 18
734 Water 771 Sanitary 773 AAE -
Tower735 Well 736 Sewer Sewer772 Water Storm Sewer
Totals Nonmajor Capital Project
RehabilitationRehabilitationRehabilitationConnectionConnectionConnection
Funds
20132012
$ - $ - $ - $ - $ - $ - $4,624$11,963
33,509 - - - - - 33,50931,913
(783)(400)(170)(1,530)(1,635)(3,517)(24,345)66,599
- - - - - - - 13,475
- - - - - - - 400
32,726(400)(170)(1,530)(1,635)(3,517)13,788124,350
- - - - - - 7,86034,436
- - - - - - 7,13112,453
90 - - - - - 21,629137,938
- - - - - - 16,30512,542
- - - - - - 104,477158,181
9000000157,402355,550
32,636(400)(170)(1,530)(1,635)(3,517)(143,614)(231,200)
40,47913,3211,938 - - - 591,157561,928
- - - - - - - (9,094)
40,47913,3211,938000591,157552,834
73,11512,9211,768(1,530)(1,635)(3,517)447,543321,634
126,398108,08646,131412,998441,462949,7255,128,9294,807,295
$199,513 $121,007 $47,899 $411,468 $439,827 $946,208 $5,576,472 $5,128,929
85
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 19
SUBCOMBINING BALANCE SHEET
AGENCY FUNDS
December 31, 2013
With Comparative Totals For December 31, 2012
902 Developer 903 Developer
Deposit FundEscrow FundTotals - Agency Funds
20132012
Assets
Cash and investments$102,004$136,000$238,004$225,031
Due from developers25,184 - 25,1845,377
Total assets$127,188 $136,000 $263,188 $230,408
Liabilities
Escrow deposits payable$ - $136,000$136,000$136,000
Accounts payable1,963 - 1,9632,872
Due to developers125,225 - 125,22591,536
Total liabilities$127,188 $136,000 $263,188 $230,408
86
CITY OF OAK PARK HEIGHTS, MINNESOTA
Statement 20
SUBCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2013
BalanceBalance
January 1,December 31,
2013AdditionsDeletions2013
902 Developer Deposit Fund
Assets:
Cash and investments$89,031$64,500$51,527$102,004
Due from developers5,37733,36413,55725,184
Total assets$94,408$97,864$65,084$127,188
Liabilities:
Accounts payable$2,872$1,963$2,872$1,963
Due to developers91,53650,94317,254125,225
Total liabilities$94,408$52,906$20,126$127,188
903 Developer Escrow Fund
Assets:
$136,000$ - $ - $136,000
Cash and investments
Liabilities:
Escrow deposits payable$136,000$ - $ - $136,000
Total Agency:
Assets:
Cash and investments$225,031$64,500$51,527$238,004
Due from developers5,37733,36413,55725,184
Total assets$230,408$97,864$65,084$263,188
Liabilities:
Escrow deposits payable$136,000$ - $ - $136,000
Accounts payable2,8721,9632,8721,963
Due to developers91,53650,94317,254125,225
Total liabilities$230,408$52,906$20,126$263,188
87
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88
STATISTICAL SECTION (UNAUDITED)
89
CITY OF OAK PARK HEIGHTS, MINNESOTA
NET POSITION BY COMPONENT
Last Ten 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
90
Table 1
200820092010201120122013
$12,328,032$11,908,771$11,519,528$11,381,436$11,172,202$11,849,446
235,559867,1031,234,8351,152,7891,007,208842,210
11,705,19212,164,92513,308,71213,958,68915,242,15715,826,327
$24,268,783$24,940,799$26,063,075$26,492,914$27,421,567$28,517,983
$6,227,796$6,925,825$6,752,968$6,964,787$6,746,344$6,604,514
1,165,2051,156,2081,166,8531,135,6791,279,8741,448,788
$7,393,001$8,082,033$7,919,821$8,100,466$8,026,218$8,053,302
$18,555,828$18,834,596$18,272,496$18,346,223$17,918,546$18,453,960
235,559867,1031,234,8351,152,7891,007,208842,210
12,870,39713,321,13314,475,56515,094,36816,522,03117,275,115
$31,661,784$33,022,832$33,982,896$34,593,380$35,447,785$36,571,285
91
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN NET POSITION
Last Ten 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
92
Table 2
Page 1 of 2
200820092010201120122013
$1,477,836$1,356,038$1,575,297$1,381,589$1,455,359$1,601,402
1,347,1641,364,7341,407,1611,411,6901,431,5941,497,765
796,532957,308980,630999,4731,128,2491,080,437
224,426211,795201,716239,100248,243269,929
138,399262,586280,548275,196377,713463,537
3,984,3574,152,4614,445,3524,307,0484,641,1584,913,070
405,965434,577466,218472,040470,266468,932
670,661680,468740,184746,656668,588695,817
59,11543,337108,46748,36043,90458,239
- - - - - -
1,135,7411,158,3821,314,8691,267,0561,182,7581,222,988
$5,120,098$5,310,843$5,760,221$5,574,104$5,823,916$6,136,058
$203,041$100,074$197,181$131,081$163,986$90,910
- - - - -
62,04064,40066,42069,4253,8304,180
- - - - - -
- 5,419147,09818,824 - -
- - 241,440 - - -
153,267112,856117,735114,847125,243108,838
84,905112,161180,639107,860102,320390,340
90,54888,187145,04896,402112,91299,171
10,091688,97576,97015,94324,131341,991
603,8921,172,0721,172,531554,382532,4221,035,430
475,658546,606565,859648,663714,660720,590
656,809651,022749,378782,266800,281833,063
74,25774,47375,69866,74083,76288,063
494 - - - - -
- - - 4,594 - -
- - - - - 23,234
1,207,2181,272,1011,390,9351,502,2631,598,7031,664,950
$1,811,110$2,444,173$2,563,466$2,056,645$2,131,125$2,700,380
93
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN NET POSITION
Last Ten 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
Loss on sale of capital assets - - - -
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
94
Table 2
Page 2 of 2
200820092010201120122013
($3,380,465)($2,980,389)($3,272,821)($3,752,666)($4,108,736)($3,877,640)
71,477113,71976,066235,207415,945441,962
(3,308,988)(2,866,670)(3,196,755)(3,517,459)(3,692,791)(3,435,678)
3,146,0493,537,8293,692,1273,934,3094,289,5664,541,103
56,693180,430104,9872,0402,0402,040
606,996456,934320,183239,763204,422(85,474)
20,89512,165 - 8,9607,9501,956
22,14814,18616,58817,71829,17226,526
432,248(549,139)261,212(20,285)504,239406,380
4,285,0293,652,4054,395,0974,182,5055,037,3894,892,531
43,08026,17422,93417,78014,046(7,026)
- - - - - (1,472)
(432,248)549,139(261,212)20,285(504,239)(406,380)
(389,168)575,313(238,278)38,065(490,193)(414,878)
$3,895,861$4,227,718$4,156,819$4,220,570$4,547,196$4,477,653
$904,564$672,016$1,122,276$429,839$928,653$1,014,891
(317,691)689,032(162,212)273,272(74,248)27,084
$586,873$1,361,048$960,064$703,111$854,405$1,041,975
95
CITY OF OAK PARK HEIGHTS, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2004200520062007
General Fund:
Nonspendable$ - $ - $ - $ -
Assigned for:
Employee benefits133,961141,533169,633183,000
Ensuing year's budget - - - -
Unassigned:
Cash flow reserve1,147,0001,237,0001,409,0001,698,000
General contingency reserve419,000439,000493,000595,000
Remaining unassigned balance147,647286,210230,86939,620
Total general fund$1,847,608$2,103,743$2,302,502$2,515,620
All other governmental funds:
Restricted for:
Debt service$454,694$214,783$717,829$460,263
Park improvements - - - -
Law enforcement - - - -
Tax increment - - - -
Assigned, reported in:
Special revenue funds81,16775,72186,326100,960
Debt service funds - - 47,315 -
Capital projects funds5,381,7346,107,9088,022,5888,480,884
Total all other governmental funds$5,917,595$6,398,412$8,874,058$9,042,107
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.
96
Table 3
200820092010201120122013
$ - $ - $ - $2,057$4,609$5,201
188,000188,000172,000179,000165,000173,000
- 193,635100,000 - -
1,541,0001,558,0001,593,0001,911,0002,060,0002,125,000
542,000557,000554,000698,000734,000777,000
345,370223,377554,797471,504706,024434,170
$2,616,370$2,720,012$2,973,797$3,261,561$3,669,633$3,514,371
$127,247$102,115$97,296$112,571$5,309,831$5,192,539
- - - 913,170870,864815,549
- - - 8,1556,9237,330
- - - - 4,60419,331
102,181100,73788,47131,19831,62731,324
- - - - -
14,977,67813,236,36111,188,96810,704,78211,645,00312,100,258
$15,207,106$13,439,213$11,374,735$11,769,876$17,868,852$18,166,331
97
CITY OF OAK PARK HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten 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%
98
Table 4
200820092010201120122013
$3,156,807$3,470,670$3,697,809$3,984,389$4,245,360$4,433,202
- - - - 26,583106,924
32,07843,81028,58322,95221,90620,731
203,041100,074197,181131,081163,98690,910
141,141276,772282,55197,442114,952102,211
102,199107,392561,411134,23749,441337,912
63,60274,58873,76160,82256,70956,608
606,996456,934320,183239,763204,422(85,474)
- - - - - -
134,987137,422134,323132,565154,415135,364
27,672612,5252,18412,500400500
4,468,523 5,280,187 5,297,986 4,815,751 5,038,174 5,198,888
1,075,6161,117,8221,370,3811,178,7101,195,1211,378,891
1,292,4651,277,6001,312,3351,351,5671,394,5861,449,103
632,530586,872592,897605,955737,001805,776
146,928139,188125,414129,327132,497152,061
901,5644,957,6533,583,666767,988160,8561,103,309
750,000135,000250,000255,000275,000295,000
134,850255,213272,000266,675260,680362,436
111,02033,537 - - 103,854 -
5,044,973 8,502,885 7,506,693 4,555,222 4,259,595 5,546,576
(576,450)(3,222,698)(2,208,707)260,529 778,579 (347,688)
21,28912,20042510,01024,4182,000
6,300,0001,195,000 - - 5,140,000 -
5,827 - - - 155,137 -
1,790,9261,144,241397,589412,366408,9142,274,540
(1,275,843)(792,994) - - - (1,868,160)
6,842,199 1,558,447 398,014 422,376 5,728,469 408,380
$6,265,749($1,664,251)($1,810,693)$682,905$6,507,048$60,692
21.9%11.1%13.3%13.8%13.4%14.8%
17.5%4.6%7.0%11.5%12.6%11.9%
99
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
2004$2,603,244$2,303,461$1,417,841$121,381
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
20132,736,977 3,528,330 3,990,896 96,104
Source: Washington County Certificate as to Taxes and Taxable Property
100
Table 5
Adjusted
Less:Less:Tax Capacity
TotalFiscalTax AdjustedTotalEstimatedas a Percent
TaxDisparityIncrementTax CapacityDirect TaxMarketof Total Tax
CapacityContributionCapturedValueRateValueCapacity
$6,445,927$798,048$ - $5,647,87934.382$447,871,20087.6%
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%
10,352,3072,346,765 108,254 7,897,28854.898641,169,000 76.3%
101
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 6
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES
Last Ten Fiscal Years
Overlapping Rates
City
FiscalDirectSchoolOther
YearRateCountyDistrictDistrictsTotal
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
201354.89834.22522.0186.983118.123
Source: Washington County website.
102
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 7
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
20132004
Percentage Percentage
Taxableof Total CityTaxableof Total City
CapacityCapacityCapacityCapacity
TaxpayerValueRankValueValueRankValue
Xcel Energy$4,241,252141.64%$1,594,767124.74%
VSSA Boutwells Landing LLC550,40925.40%315,00634.89%
Wal-Mart Stores, Inc.294,78032.89% - - 0.00%
OPH Pat LLC & OPH Val LLC248,93442.44% - - 0.00%
SC Mall LLC211,93052.08%376,65625.84%
Menard Inc.205,96262.02%162,71852.52%
Lowe's Home Centers, Inc.188,31071.85% - - 0.00%
OP Stillwater LLC165,77081.63% - - 0.00%
W.A.T.E. Enterprises Inc.125,61091.23%88,87671.38%
Raduenz Dealership 111,808101.10%82,35281.28%
KTJ Limited Partnership Eleven0.00% - - 0.00%
Wal-Mart Real Estate Business0.00%134,06462.08%
Oak Ridge Place of Oak Park0.00% - - 0.00%
Stillwater West LLC0.00% - - 0.00%
Secure Mini Storage Limited0.00% - - 0.00%
Prudential Insurance Co. of America0.00%207,93443.23%
WDBH Realty Company0.00%73,21891.14%
Jerden LLC0.00%70,306101.09%
Total$6,344,76562.29%$3,105,89748.18%
Total All Property $10,186,479$6,445,927
103
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 8
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
FiscalTaxesCollectionsCollected Within The
YearLeviedinFiscal Year of the LevyTotal Collections to Date
EndedFor ThePercentageSubsequentPercentage
(1)
Fiscal Year
December 31,Amountof LevyYearsAmountof Levy
2004$1,965,536$1,938,72698.64%$24,438$1,963,16499.88%
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%(33,798)4,142,32797.93%
20134,538,1934,457,88698.23% - 4,457,88698.23%
(1)
The levy amount presented is after deduction for Market Value Homestead Credit.
Source: City Finance Department.
104
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 9
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities
GeneralPercentage
FiscalObligationImprovementof TaxPer
YearBondsBondsTotalCapacityCapita
2004$225,000$1,235,000$1,460,00022.65%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
201311,425,000 - 11,425,000110.36%2,633
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.
105
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 10
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2013
Estimated
EstimatedShare of
DebtPercentageOverlapping
Governmental UnitOutstandingApplicableDebt
Debt repaid with property taxes:
Independent School District No. 83443,730,00010.75%$4,700,975
Washington County139,195,0003.24%4,509,918
Washington County HRA51,664,7463.24%1,673,938
Metro Transit306,885,0920.34%1,043,409
Subtotal - overlapping debt11,928,240
City direct debt11,425,000100.00%11,425,000
Total direct and overlapping debt$23,353,240
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.
106
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 11
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2013
Market value$641,169,000
Debt limit (3% of market value)19,235,070
Debt applicable to limit:
General obligation bonds11,425,000
Less: Amount set aside for repayment
of general obligation debt(5,192,539)
Total net debt applicable to limit6,232,461
Legal debt margin$13,002,609
Legal Debt Margin Calculation for Fiscal Years 2003 Through 2013
Net DebtLegalAmount of Debt
FiscalDebtApplicable toDebtApplicable to
YearLimitLimitMarginDebt Limit
2004$8,957,424$ - $8,957,4240.00%
20059,700,534 - 9,700,5340.00%
200610,787,142 - 10,787,1420.00%
200711,581,796 - 11,581,7960.00%
200820,207,1186,172,75314,034,36530.55%
200921,562,6027,257,88514,304,71733.66%
201020,482,2637,012,70413,469,55934.24%
201120,098,1616,746,31513,351,84633.57%
201219,308,249 6,410,170 12,898,07933.20%
201319,235,070 6,232,461 13,002,60932.40%
Note: In 2008, State Statutes increased the percentage used to calculate the debt limit from 2% to 3%.
107
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 12
PLEDGED REVENUE COVERAGE
Last Ten Fiscal Years
Improvement Bonds
PropertySpecialProperty Tax
FiscalTaxAssessmentTransfer FromDebt Service
(1)(2)(3)
CollectionsCollectionsGeneral Fund
YearPrincipalInterestCoverage
2004$ - $197,940$ - $250,000$60,0120.638
235,00051,3870.714
2005 - 204,585 -
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
-
2013 -559,000295,000253,6051.019
-
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.
108
CITY OF OAK PARK HEIGHTS, MINNESOTA
Table 13
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Per
Capita
FiscalUnemploymentPersonalPersonal
(1)(1)
IncomeIncome
YearPopulationRate
20044,6334.0%
20054,6643.4%
20064,6763.5%
20074,7514.1%
20084,7085.4%
Information Not Available
20094,6537.4%
20104,3396.3%
20114,3395.2%
2012 4,4455.3%
2013 4,6544.6%
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
20132004
EmployerProduct ServiceEmployeesEmployees
Andersen CorporationWindow Manufacturer600600
VSSA - Boutwell's Landing/McKean SquareSenior Community Housing485135
State of Minnesota Correctional FacilityGovernment Correctional Institution355297
Wal-Mart Stores, Inc.Retail261225
ISD No. 834, StillwaterPublic education180220
Menard's Inc.Retail Lumber/Hardware124100
Lowe'sRetail110
Xcel EnergyElectric Utility106
Stillwater MotorsAuto Dealership/Service Repair92105
Kowalski'sRetail/Grocery95
Kohl'sRetail77155
Stillwater FordAuto Dealership/Service Repair129
HerbergersRetail135
Total2,4852,101
111
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/Program200420052006
General government:
Administration222
Finance333
Building inspections222
Public safety101010
Public works444
Total212121
Source: City Finance Department
112
Table 15
Full-Time Equivalent Employees as of December 31,
2007200820092010201120122013
2222223
3333333
2222211
10101010101011
4433444
21212020212022
113
CITY OF OAK PARK HEIGHTS, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program200420052006
Police:
Physical arrests308251240
Parking violations118123124
Traffic violations1,0231,089738
Fire:
Fire and related calls113115119
Medical calls200251302
Building inspection:
Permits issued:
Residential48211
Commercial111315
Total permit valuation$18,043,522$12,732,475$36,975,066
Water:
Connections1,2591,2771,289
Average daily demand (thousands of gallons)611,000614,000676,000
Sewer:
Connections1,2351,2511,264
Sources: Various City departments.
(1)
Connection for Irrigation accounts removed from the total
114
Table 16
Fiscal Year
2007200820092010201120122013
207224208176151151148
921351701711559991
6131,0169691,2408741,1261,081
106989111083107170
270292293260306451546
194 - 1 - 2 -
822132 -
$6,521,063$18,707,532$7,254,000$10,955,024$1,828,000$8,776,295$4,781,710
(1)(1)
1,3041,3151,3181,3171,3211,2731,274
681,452654,172681,816576,085593,496667,835626,000
1,2741,2831,2851,2681,2781,2861,280
115
CITY OF OAK PARK HEIGHTS, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program2004200520062007
Police:
Stations1111
Squad cars7766
Fire stations
Other public works:
Miles of paved streets22.022.022.022.0
Streetlights330392392396
Traffic signals2222
Parks and recreation:
Parkland acreage105105105104
Number of parks4445
Water:
Water mains (miles)26.626.626.626.8
Fire hydrants316316316316
Storage capacity (thousands of gallons)750750750750
Wastewater:
Sanitary sewers (miles)21.923.323.324.9
Storm sewers (miles)12.512.512.512.6
Sources: Various City departments.
116
Table 17
Fiscal Year
200820092010201120122013
111111
666666
22.022.022.022.022.022.0
396396396396396396
222222
108104104104104104
555555
26.827.127.127.127.127.1
316265265265265265
750750750750750750
24.924.924.924.924.924.9
12.612.612.612.612.612.6
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