2005 CAFR COMPREHENSIVE ANNUAL
FINANCIAL REPORT
1 Ilk
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CITY OF FRIDLEY
MINNESOTA
FOR THE YEAR ENDED DECEMBER 31, 2005
M
CITY OF FRIDLEY, MINNESOTA
Comprehensive Annual Financial Report
For the Fiscal Year Ended
December 31, 2005
Prepared by:
Finance Department
Richard D. Pribyl
Finance Director
CITY OF
FRIDLEY
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2005
TABLE OF CONTENTS
EXHIBIT PAGE
I. INTRODUCTORY SECTION
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting 11
Elected and Appointed Officials 13
City Administrative Organizational Structure 2005 14
II. FINANCIAL SECTION
Independent Auditor's Report 19
Management's Discussion and Analysis 23
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets A-1 35
Statement of Activities A-2 36
Fund Financial Statements:
Balance Sheet-Governmental Funds A-3 38
Statement of Revenues, Expenditures and Changes in Fund Balances-
Governmental Funds A-4 40
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds A-5 43
Statement of Net Assets-Proprietary Funds A-6 44
Statement of Revenues, Expenses and Changes in Fund Net Assets-
Proprietary Funds A-7 46
Statement of Cash Flows- Proprietary Funds A-8 48
Statement of Fiduciary Net Assets A-9 50
Notes to Financial Statements 51
Required Supplementary Information:
Budgetary Comparison Schedule- General Fund B-1 84
Budgetary Comparison Schedule- Grant Management Fund B-2 88
Budgetary Comparison Schedule- Note to RSI 89
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet-Nonmajor Governmental Funds C-1 96
Combining Statement of Revenues, Expenditures and Changes in Fund Balances-
Nonmajor Governmental Funds C-2 97
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2005
TABLE OF CONTENTS
EXHIBIT PAGE
Subcombining Balance Sheet- Nonmajor Special Revenue Funds C-3 100
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances-Nonmajor Special Revenue Funds C-4 102
Special Revenue Funds:
Cable TV Fund:
Comparative Balance Sheet D-1 104
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual D-2 105
Solid Waste Abatement Fund:
Comparative Balance Sheet D-3 106
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual D-4 107
HRA Reimbursement Fund:
Comparative Balance Sheet D-5 108
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual D-6 109
Drug and Gambling Forfeiture Fund:
Comparative Balance Sheet D-7 110
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual D-8 111
F. C. C. Donations Fund:
Comparative Balance Sheet D-9 112
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual D-10 113
Police Activity Fund:
Comparative Balance Sheet D-11 114
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual D-12 115
Springbrook Nature Center Fund:
Balance Sheet D-13 116
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual D-14 117
Capital Project Fund:
Capital Improvement Fund:
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual E-1 118
Internal Service Funds:
Combining Statement of Net Assets F-1 120
Combining Statement of Revenues, Expenses and Changes in Net Assets F-2 121
Combining Statement of Cash Flows F-3 122
Employee Benefits Fund:
Comparative Statement of Net Assets F-4 123
Comparative Statement of Revenues, Expenses and Changes in Net Assets F-5 124
Comparative Statement of Cash Flows F-6 125
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2005
TABLE OF CONTENTS
EXHIBIT PAGE
Self Insurance Fund:
Comparative Statement of Net Assets F-7 126
Comparative Statement of Revenues, Expenses and Changes in Net Assets F-8 127
Comparative Statement of Cash Flows F-9 128
Information Systems Fund:
Comparative Statement of Net Assets F-10 129
Comparative Statement of Revenues, Expenses and Changes in Net Assets F-11 130
Comparative Statement of Cash Flows F-12 131
Housing and Redevelopment Authority (Component Unit):
Balance Sheet-Governmental Funds G-1 134
Statement of Revenues, Expenditures and Changes in
Fund Balances-Governmental Funds G-2 136
Combining Balance Sheet- Nonmajor Governmental Funds G-3 138
Combining Statement of Revenues, Expenditures and Changes in Fund Balances-
Nonmajor Governmental Funds G-4 139
Subcombining Balance Sheet- Nonmajor Capital Project Funds G-5 140
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances-Nonmajor Capital Project Funds G-6 142
Agency Funds:
Statement of Changes in Assets and Liabilities H-1 146
Ill. STATISTICAL SECTION (Unaudited)
Government-Wide Information:
Government-Wide Expenses By Function 1 148
Government-Wide Revenues 2 150
General Government Expenditures by Function - Last Ten Fiscal Years 3 152
General Revenue by Source-Last Ten Fiscal Years 4 153
Certified Property Tax Levies and Collections- Last Ten Fiscal Years 5 155
Estimated Market Value and Taxable Value of All Property-
Last Ten Fiscal Years 6 156
Significant Minnesota Tax Policies 7 159
Tax Capacity Rates- Direct and Overlapping Governments- Last Ten Fiscal Years 8 160
Special Assessment Levies and Collections-Last Ten Fiscal Years 9 163
History of Certified Tax Levies and Tax Rates- Last Ten Fiscal Years 10 164
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2005
TABLE OF CONTENTS
EXHIBIT PAGE
Ratio of Net General Bonded Debt to Taxable Value and Net Bonded Debt Per
Capita - Last Ten Fiscal Years 11 167
Computation of Legal Debt Margin 12 168
Computation of Direct and Overlapping Bonded Debt and Comparative
Debt Ratios 13 170
Ratio of Annual Debt Service Expenditures for General Bonded Debt to
Total General Government Expenditures- Last Ten Fiscal Years 14 171
Revenue Bond Coverage- Last Ten Fiscal Years 15 172
Demographic Statistics- Last Ten Fiscal Years 16 173
Construction and Property Value-Last Ten Fiscal Years 17 174
Principal Taxpayers 18 175
Insurance Coverage 19 176
Miscellaneous Statistical Information 20 177
General Information 21 180
I. INTRODUCTORY SECTION
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CITY OF
FRIDLEY
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CI1YOF
FRIDLEY
FRIDLEY MUNICIPAL CENTER • 6431 UNIVERSITY AVE.N.E.FRIDLEY,MN 55432
(763)571-3450 • FAX(763)571-1287 • TTD/ITY(763)572-3534
June 1, 2006
To the Citizens of the City of Fridley,
Mayor, Council Members, and City Manager
The Comprehensive Annual Financial Report of the City of Fridley, Minnesota, for the fiscal
year ended December 31, 2005, is submitted herewith:
Responsibility for both the accuracy of the presented data and the completeness and fairness of
the presentation, including all disclosures, rests with the City. We believe that the data, as
presented, is accurate in all material aspects, that it is presented in a manner designed to fairly
set forth the financial position and results of operations of the City as measured by the
financial activity of its various funds, and that all disclosures necessary to enable the reader to
gain the maximum understanding of the City's financial activity have been included.
The Comprehensive Annual Financial Report is presented in three sections: Introductory,
Financial, and Statistical. The Introductory Section includes this transmittal letter, the City's
organizational chart, a list of principal officials, and a reproduction of the Certificate of
Achievement for the prior year. The Financial Section includes: 1) independent auditor's
opinion; 2) management's discussion and analysis; 3) government-wide and fund financial
statements; 4) notes to the financial statements; 5) required supplemental information; 6)
combining and individual fund statements and schedules; and, 7) the supplemental financial
information. The Statistical Section includes tables and reports of various economic, social,
financial and fiscal data designed to reflect trends and ratios.
Generally accepted accounting principals require that management provide a narrative
introduction, overview, and analysis to accompany the basic financial statements in the form of
Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to
complement the MD&A and should be read in conjunction with it. The City of Fridley's
MD&A can be found immediately following the report of the independent auditors.
All City funds, departments, commissions and other organizations for which the City of
Fridley is financially accountable are presented within the Comprehensive Annual Financial
Report. The City provides a full range of services to its citizens. These services include, but are
not limited to, police and fire protection; water and sanitary sewer utilities; the construction
and maintenance of streets and infrastructure; recreational facilities; and general administrative
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CITY OF
FRIDLEY
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CITY OF FRIDLEY, MINNESOTA
services. The Housing and Redevelopment Authority (HRA) is included in the reporting entity
as a component unit of the City, because the governing board is appointed by the City Council,
and because of the City's relationship of financial benefit or burden with the authority.
The organization, form and contents of this report were prepared in accordance with the
standards prescribed by the Governmental Accounting Standards Board (GASB), the
Government Finance Officers Association of the United States and Canada (GFOA), the
American Institute of Certified Public Accountants, the Minnesota Office of the State Auditor,
and the City Charter.
ECONOMIC CONDITION AND OUTLOOK
BACKGROUND AND LOCATION
The City of Fridley is a first ring suburban community with an estimated 2005 population of
27,088. The City is located 10 minutes north of downtown Minneapolis and 25 minutes
northwest of downtown St. Paul. Incorporated in July of 1949, Fridley covers 11 square miles
of area and is now home to some of the most important industries in the Midwest, nation, and
the world. An industrial spine around the rail corridor has served the City well and has
provided the city with nearly as many jobs as the number of citizens who reside in the
community. Fridley is home to the largest number of employees in Anoka County.
LOCAL ECONOMY
The local economy has been a mixed bag over the past year. The number of manufacturing
jobs has increased; however, the number of service jobs has decreased. The unemployment
rate for the City however, is still below that of the national average.
The value of new construction for 2005 increased significantly from 2004 levels. In 2005 there
were six new projects having a value greater than $500,000, compared to only four in 2004.
Continued long-term growth is anticipated as Fridley continues to aggressively pursue
redevelopment opportunities. Property values have continued to increase with an overall
increase of 6.8% in estimated market value for all properties in Fridley, and a 13.2% increase
in estimated market value for homesteaded residential property.
MAJOR INITIATIVES
For the Year
The City has many accomplishments to report for 2005. The following list is a summary
of the major initiatives completed throughout the year.
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CITY OF FRIDLEY, MINNESOTA
ECONOMIC CONDITION AND OUTLOOK(CONTINUED)
1. The City reconstructed 3.8 miles of streets throughout the City. This
project work included new concrete curb and gutter, new base and asphalt,
and water and sewer repairs as necessary. The final cost of these projects
was approximately $2,400,000.
2. Wells #3 & 6 were repaired as part of the City's preventive maintenance
program. This program helps to ensure a constant water supply for the
City.
3. The City continued installing AMR(automated meter reading)devices on
some of its more difficult to read commercial meters.
4. The Police Department shooting range was improved.
5. The City took advantage of low interest rates and refinanced a 1997 bond
issue.
6. The City maintained a Aal credit rating from Moody's Investors Service.
For the Future
The future for the City of Fridley will be filled with change and restructuring depending on
future legislative actions that may change the state's tax structure, municipal redevelopment
methods, and revenue streams. Traditional level of service is a concern as the City looks at
potential reductions in revenue from traditional redevelopment practices and local government
aid actions at the State Capitol. The City will continue to investigate alternatives that will
allow creative solutions to the delivery of services. The City of Fridley will embark on the
complimentary anchor to the Gateway East development with a project called Gateway West,
which will likely provide an additional 16 single-family units. The importance of this small
development is the balance and positive image it will provide as people enter the community
on University Avenue from the south.
Finally, a proposal by the North Star Corridor Development Authority proposes to connect
Fridley to the region through the use of the existing Burlington Northern Santa Fe rail lines and
using new convenient passenger rail cars continues to move forward. The 2005 legislature
approved funding for this effort to continue. The proposal would offer an alternative mode of
transportation for residents who are commuting into the Minneapolis area from the north.
Additional neighborhood and rail compatible development may occur on the remaining
acreage near the Fridley station site.
Significant projects budgeted for 2006 in the five year capital improvement plan include: the
purchase of a combination pumper and ladder fire truck; an accelerated program to reconstruct
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CITY OF FRIDLEY, MINNESOTA
ECONOMIC CONDITION AND OUTLOOK(CONTINUED)
streets; a reconditioning of the Commons Water Treatment Plant; and the annual well,
reservoir, and pump house maintenance programs.
FINANCIAL INFORMATION
INTERNAL CONTROLS
In developing and improving the City's accounting system, consideration is given to the
adequacy of internal accounting controls. Internal accounting controls are designed to provide
reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from
unauthorized use or disposition and the reliability of financial records for preparing financial
statements and maintaining accountability for assets. The concept of reasonable assurance
recognizes that the cost of a control should not exceed the benefits likely to be derived and the
evaluation of costs and benefits requires estimates and judgments by management.
All internal control evaluations occur within the above framework. We believe that the City's
internal accounting controls adequately safeguard assets and provide reasonable assurance of
the proper recording of financial transactions.
BUDGETARY CONTROLS
A complete budgetary system of accounts is maintained for the General and Special Revenue
Funds. Budgetary control is maintained in compliance with the City Charter requirements.
The Charter provides that it is the duty of the City Manager to strictly enforce the provisions of
the budget. The management policy of the City is such that the existence of a particular item
or appropriation in the approved budget does not mean that it will or must be automatically
expended. It is the policy of the City to control budgets at the expenditure category level.
Budget adjustments between City divisions are made upon the approval of a resolution by the
City Council. The City Charter provides that the City Council shall not have power to increase
the total amount of the budget, whether by insertion of new items or otherwise, beyond the
estimated revenue unless the actual revenue exceeds such revenue estimates, and in that event
not beyond such actual revenue. There is a constant review process.
Expenditures are not approved until it has been determined that 1)the expenditure is necessary,
2) adequate funds have been appropriated, and 3) funds are available.
CASH MANAGEMENT
All temporary cash surpluses during the year are invested in various securities that State
statutes permit. The City's policy is to invest all available monies at competitive interest rates
in accordance with the City's over-all fiscal plan coordinated with operating needs and
programs projected over the ensuing 12-month period. Investment yields on investments held
during the year ranged from 2.0%to 6.0%.
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CITY OF FRIDLEY,MINNESOTA
FINANCIAL INFORMATION (CONTINUED)
RISK MANAGEMENT
The Self-Insurance Fund was set up to account for all revenues and expenditures associated
with the $50,000 deductible on the general liability policy. Self-insuring a larger deductible
has reduced the annual premiums that allow us to directly benefit from our good experience
rating. In the future an analysis will be made of the feasibility of self-insuring all or a portion
of other policies. In 1990, $1,000,000 was transferred from the General Fund to the Self-
Insurance Fund.
OTHER INFORMATION
PENSIONS
City of Fridley employees are covered by one of three pension plans:
1. Fridley Fire Relief Association for Volunteer Firemen.
2. Public Employees Retirement Police and Fire Plan, covering the City's full-time
Firemen and Police Officers.
3. Coordinated Public Employees Retirement Plan, which covers other City civilian
employees. The employees covered by the Coordinated Public Employees Retirement
Plan are also covered by Social Security.
The City is currently making all pension contributions required by law.
For additional background information on the pension plans covering City employees, see
Notes to the Financial Statements.
INDEPENDENT AUDIT
Section 7.13 of the City Charter requires an annual audit to be made of the books of account,
financial records and transactions of all administrative departments of the City by a certified
public accountant or the State Auditor's Office of the State of Minnesota. The accounting firm
of HLB Tautges Redpath, Ltd. was engaged by the City to render an opinion on the City's
financial statements. The auditor's report on the basic financial statements and combining and
individual fund statements and schedules is included in the Financial Section of this report.
CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Fridley, Minnesota, for its comprehensive annual financial report for the fiscal year ended
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CITY OF FRIDLEY,MINNESOTA
OTHER INFORMATION (CONTINUED)
December 31, 2004. In order to be awarded a Certificate of Achievement, a government must
publish an easily readable and efficiently organized Comprehensive Annual Financial Report.
This report must satisfy both generally accepted accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current
Comprehensive Annual Financial Report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
ACKNOWLEDGMENTS
The preparation of this report on a timely basis could not have been accomplished without the
efficient and dedicated services of all members of the Finance Department, with special
recognition to Craig Ellestad, Mike Jeziorski, Carol Meyer, and Marcy Everette and to our
auditors HLB Tautges Redpath, Ltd. for their professional guidance. We would also like to
express our appreciation to the Mayor and members of the City Council for their interest and
support in planning and conducting the financial operations of the City in a responsible and
progressive manner.
Respectfully submitted,
P. ale 44:0
Richard D. Pribyl Alan D. Folie
Finance Director Assistant Finance Director
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CITY OF
FRIDLEY
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Fridley,
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2004
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports(CAFRs)achieve the highest
standards in government accounting
and fmancial reporting.
GE OFFj ��I/1'_ " _ Y
t COMMON S President
M CANADA
SEAL 4,k
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*Sr le019
Executive Director
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CITY OF
FRIDLEY
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CITY OF FRIDLEY, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
DECEMBER 31,2005
ELECTED OFFICIALS
Term of Office
Expires December
Mayor Scott J. Lund 2008
Councilmember At Large Robert R. Barnette 2008
Councilmember,Ward I Steven E. Billings 2006
Councilmember,Ward II Richard P.Wolfe 2006
Councilmember,Ward Ill Ann R. Bolkcom 2006
APPOINTED OFFICIALS
City Manager William W. Bums
City Attorney Frederic W. Knaak
Prosecuting Attorney Carl J. Newquist
City Clerk Debra A. Skogen
Department Heads:
Finance Director/Treasurer Richard D. Pribyl
Director of Public Safety and Civil Defense Donovan W.Abbott
Fire Chief John D. Berg
Director of Public Works Jon H. Haukaas
Director of Recreation and Natural Resources Jack G. Kirk
Director of Community Development Scott J. Hickok
Director of Human Resources Deborah K. Dahl
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CITY ADMINISTRATIVE ORGANIZATIONAL STRUCTURE 2005
City of Fridley
Total Authorized Postions - 133 (A)
CITY MANAGEMENT(3)
City Manager
Secretary to the City Manager
Cable Administrator
FINANCE(23) POLICE (46) HUMAN RESOURCES (2)
Finance Director-Treasurer Public Safety Director Human Resources Director
Secretary Secretary HR Assistant
(2)Accountants
OPERATIONS (30)
ACCOUNTING (5) Captain
Assistant Finance Director (6)Sergeants
Payroll Technician (23)Patrol Officers
Accounting Specialist
(2)Acctg-Data Processing Clerks TECHNICAL SUPPORT(14)
Captain
ASSESSING(2) (1)Sergeant
City Assessor (5)Patrol Officers
Appraiser Projects Coordinator
Crime Prevention Specialist
MIS (2) Office Supervisor
MIS Coordinator (4)Police Technicians
MIS Specialist (1 FT,4 PT benefitted=3 FTE's)
CITY CLERK-RECORDS (2) FIRE(8)
City Clerk
Licensing and Records Technician Fire Chief
Secretary
Assistant Chief
Fire Marshal
Non-General Fund (3) Full-time Firefighters
LIQUOR(6) Rental Inspection Asst.
Liquor Operations Manager (.75 FTE w/benefits)
Assistant Manager
(4) Liquor Store Clerks
WATER ADMIN (2)
Utility Billing Clerk
Acctg-Data Processing Clerk
(A)An "Authroized Position"is defined as one that works at least 32 hours a week and receives
a full-time benefit package.
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PUBLIC WORKS (35) RECREATION & COMMUNITY
NATURALIST(8) DEVELOPMENT(8)(B)
Director of Public Works
Secretary Director of Recreation & Director of Community
Operations Analyst Natural Resources Development
Recreation Office Coordinator Secretary
ENGINEERING (2) (3)Program Supervisors
Assistant Public Works Director BUILDING INSPECTION (3)
Engineering Tech Inspector Chief Building Official
Building Inspector
PW MAINTENANCE (30) NATURALIST(3) Secretary
Secretary Natural Res. Coordinator
Lead Mechanic Interpretive Specialist PLANNING (3)
(2)Mechanic, Level B Secretary Planning Coordinator
Street Supervisor Planning Assitant
(8) Public Service Worker Environmental Coordinator
Water Supervisor
(4)Public Service Worker
Sewer Supervisor
(4)Public Service Worker
Parks Supervisor
(6)Public Service Worker
(B)There are two full-time positions that report to the Community Development Director that are not funded
from the City budget. They are: 1)Assistant Executive Director- HRA and 2) Housing Specialist.
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CITY OF
FRIDLEY
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II. FINANCIAL SECTION
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CITY OF
FRIDLEY
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H LB Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Fridley, Minnesota
We have audited the accompanying financial statements of the governmental activities, the
business-type activities,the aggregate discretely presented component unit, each major fund, and
the aggregate remaining fund information of the City of Fridley, Minnesota, as of and for the
year ended December 31, 2005 which collectively comprise the City's basic financial statements
as listed in the table of contents. These financial statements are the responsibility of the City of
Fridley, Minnesota's management. 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 of material misstatement. An audit includes consideration of
internal control over financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City of Fridley, Minnesota's internal control over financial reporting.
Accordingly, we express no such opinion. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of the governmental activities, the business-type activities, the aggregate
discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City of Fridley, Minnesota, as of December 31, 2005, and the respective
changes in financial position and where applicable, cash flows, thereof for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued a report dated
May 10, 2006 on our consideration of the City of Fridley, 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
4810 White Bear Parkway White Bear Lake, Minnesota 55110 651 426 7000 651 426 5004 Fax www.hibtr.com
1303 South Frontage Road Suite 13 Hastings, Minnesota 55033 651 480 4990 651 426 5004 Fax
HLB Tautges Redpath,Ltd is a member of El International,a world-wide organization of accounting firms and business advisors.
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CITY OF
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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 the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards and should be considered in conjunction with this report in
considering the results of our audit.
The Management's Discussion and Analysis and the budgetary comparison information as listed
in the table of contents, are not a required part of the basic financial statements but are
supplementary information required by accounting principles generally accepted in the United
States of America. We have applied certain limited procedures, which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the required
supplementary information. However,we did not audit the information and express no opinion
on it.
Our audit was made for the purpose of forming opinions on the financial statements that
collectively comprise the City of Fridley, Minnesota's basic financial statements. The
introductory section, combining and individual fund statements and schedules and statistical
tables as listed in the table of contents are presented for purposes of additional analysis and are
not a required part of the basic financial statements. The combining and individual fund
statements and schedules have been subjected to the auditing procedures applied in the audit of
the basic financial statements and, in our opinion, are fairly stated in all material respects, in
relation to the basic financial statements taken as a whole. The introductory section and
statistical tables have not been subjected to the auditing procedures applied in the audit of the
basic financial statements and accordingly, we express no opinion on them.
/4A r4.44._ A-9m/7, c&.
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
May 10, 2006
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CITY OF
FRIDLEY
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MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Fridley, we offer readers of the City of Fridley's financial
statements this narrative overview and analysis of the financial activities of the City for the
fiscal year ended December 31, 2005. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter
of transmittal,which can be found on pages 3 through 9 of this report.
Financial Highlights
The assets of the City of Fridley exceeded its liabilities at the close of the most recent fiscal
year by $59,043,515 (Net assets). Of this amount, $22,590,099 (unrestricted net assets) may
be used to meet the government's ongoing obligations to citizens and creditors in accordance
with the City's fund designations and fiscal policies.
During 2005, the City's total net assets increased by$994,292.
As of the close of the current fiscal year, the City of Fridley's governmental funds reported
combined ending fund balances of$19,616,887. Of this total amount, $12,476,413, or 64% is
designated or reserved through legal restrictions and City Council authorization.
At the end of the current fiscal year the general fund balance of $4,101,947, included
$81,662 reserved and$4,020,285 designated.
The City's total debt, including compensated absences, decreased by $1,276,273 during the
current fiscal year, from$15,970,718 to $14,694,445.
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the City of Fridley'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.
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Fridley's finances, in a
manner similar to a private-sector business.
The statement of net assets presents information on all of the City of Fridley's assets and
liabilities, with the difference between the two reported as net assets. Over time, increases or
decreases in net assets may serve as a useful indicator of whether the financial position of the
City of Fridley is improving or deteriorating.
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Management's Discussion and Analysis
The statement of activities presents information showing how the City's net assets changed
during the most recent fiscal year. All changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will
only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused
vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Fridley
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 of Fridley include general government, public safety, public works, community
development, and recreation and naturalist. The business-type activities of the City of
Fridley include liquor, water, sewer and storm water.
The government-wide financial statements can be found on pages 35 through 37 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 of Fridley, 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
of Fridley can be divided into three categories: governmental funds, proprietary funds, and
fiduciary 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 resources, 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 statement. 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 balances provide
a reconciliation to facilitate this comparison between governmental funds and governmental
activities.
24
Management's Discussion and Analysis
The City of Fridley maintains six individual major governmental funds. Information is
presented separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances for the general fund, grant
management fund, special assessment debt service fund, tax increment debt service fund,
special assessment construction capital projects fund and capital improvements fund all of
which are considered to be major funds.
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-major governmental funds is provided in the form
of combining statements elsewhere in this report.
The City of Fridley adopts an annual appropriated budget for its general fund, special
revenue funds and capital improvements capital projects fund.
A budgetary comparison statement has been provided for those funds to demonstrate
compliance with this budget.
The basic governmental fund financial statements can be found on pages 38 through 43 of
this report.
Proprietary funds. The City of Fridley maintains four enterprise funds and three internal
service 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 of Fridley uses enterprise funds to account for its liquor, water, sewer,
and storm water operations. The City of Fridley uses internal service funds to account for its
employee benefits, self insurance and information systems. Because these services
predominately benefit governmental rather than business-type functions, they have been
included within governmental activities in the government-wide financial statements.
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 water, sewer, storm water and liquor operations, all of which are
considered to be major funds of the City of Fridley. Conversely, the internal service funds
are combined into a single, aggregated presentation in the proprietary fund financial
statements. Individual fund data for the internal service funds is provided in the form of
combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 44 through 49 of this
report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government-wide
financial statements because the resources of those funds are not available to support the City
of Fridley's own program. The accounting used for fiduciary funds is much like that used for
proprietary funds.
25
Management's Discussion and Analysis
The basic fiduciary fund financial statement can be found on page 50 of this report.
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 on pages 51 through 81 of this
report.
Other information. The combining statements referred to earlier in connection with the
non-major governmental funds are presented immediately following the required
supplementary information on budgetary comparisons. Combining and individual fund
statements and schedules can be found on pages 91 through 146 of this report.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indictor of a government's
financial position. In the case of the City of Fridley, assets exceeded liabilities by
$59,043,515 at the close of the most recent fiscal year.
The largest portion of the City of Fridley's net assets ($34,912,885 or 59 percent) reflects its
investment in capital assets (e.g. land, buildings, machinery and equipment) less any related
debt used to acquire those assets that is still outstanding. The City of Fridley uses these
capital assets to provide services to citizens; consequently, these assets are not available for
future spending. Although the City of Fridley'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 FRIDLEY'S NET ASSETS
Governmental Activities Business-Type Totals
2004 2005 2004 2005 2004 2005
Current and other assets $24,953,043 $25,081,138 $12,396,211 $10,010,640 $37,349,254 $35,091,778
Capital assets 18,495,647 20,263,113 19,928,180 20,265,012 38,423,827 40,528,125
Total assets $43,448,690 $45,344,251 $32,324,391 $30,275,652 $75,773,081 $75,619,903
Long-term liabilities outstanding $8,487,368 $8,687,978 $3,809,933 $3,415,240 $12,297,301 $12,103,218
Other liabilities 3,254,995 3,326,514 2,171,562 1,146,656 5,426,557 4,473,170
Total liabilities $11,742,363 $12,014,492 $5,981,495 $4,561,896 $17,723,858 $16,576,388
Net assets:
Invested in capital assets,net of related debt $18,305,647 $18,458,113 $14,528,247 $16,454,772 $32,833,894 $34,912,885
Restricted 1,664,773 1,540,531 - - 1,664,773 1,540,531
Unrestricted 11,735,907 13,331,115 11,814,649 9,258,984 23,550,556 22,590,099
Total net assets $31,706,327 $33,329,759 $26,342,896 $25,713,756 $58,049,223 $59,043,515
26
Management's Discussion and Analysis
A portion of the of the City of Fridley's net assets represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net
assets ($22,590,099) may be used to meet the City's ongoing obligations to citizens and
creditors.
At the end of the current fiscal year, the City of Fridley is able to report positive balances in
all three categories of net assets, both for the government as a whole, as well as for its
separate governmental and business-type activities.
Governmental Activities
Governmental activities increased the City of Fridley's net assets by $1,623,432, while the
overall increase totaled $994,292. Key elements of this increase are as follows:
City of Fridley's Changes in Net Assets
Governmental Activities Business-Type Activities Totals
2004 2005 2004 2005 2004 2005
Revenues:
Program revenues:
Charges for services $2,669,014 $2,954,192 $10,770,363 $10,739,892 $13,439,377 $13,694,084
Operating grants and contributions 1,009,861 1,121,726 208 600 1,010,069 1,122,326
Capital grants and contributions 882,292 1,657,106 - - 882,292 1,657,106
General revenues: - -
Property taxes 5,816,656 7,428,226 - - 5,816,656 7,428,226
Grants and contributions not
restricted to specific programs 3,436,473 3,365,739 - - 3,436,473 3,365,739
Unrestricted investment earnings 413,743 511,464 146,248 168,445 559,991 679,909
Gain on sale of property 680 434 - - 680 434
Total revenues 14,228,719 17,038,887 10,916,819 10,908,937 25,145,538 27,947,824
Expenses:
General government 3,513,065 4,448,175 - - 3,513,065 4,448,175
Public safety 5,468,014 5,514,330 - - 5,468,014 5,514,330
Public works 3,612,318 4,105,860 - - 3,612,318 4,105,860
Community development 602,335 793,836 - - 602,335 793,836
Recreation and naturalist 993,570 767,599 - - 993,570 767,599
Interest on long-term debt 544,478 443,533 - - 544,478 443,533
Liquor - - 5,005,198 4,919,458 5,005,198 4,919,458
Water - - 2,086,513 2,070,032 2,086,513 2,070,032
Sewer - - 3,256,371 3,570,113 3,256,371 3,570,113
Storm water - - 334,906 320,596 334,906 320,596
Total expenses 14,733,780 16,073,333 10,682,988 10,880,199 25,416,768 26,953,532
Increase(decrease)in net assets before transfers (505,061) 965,554 233,831 28,738 (271,230) 994,292
Transfers 558,609 657,878 (558,609) (657,878) - -
Increase in net assets 53,548 1,623,432 (324,778) (629,140) (271,230) 994,292
Net assets-January 1 31,652,779 31,706,327 26,667,674 26,342,896 58,320,453 58,049,223
Net assets-December 31 $31,706,327 $33,329,759 $26,342,896 $25,713,756 $58,049,223 $59,043,515<
27
Management's Discussion and Analysis
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenditures:
Governmental Activities-Revenues
Unrestricted investment
earnings
I
Grants and contributions not 3% Charges for services
restricted n specufic programs ��; v¢t �� r } i�g��,�
17/
20% e S� i -gt :' n;. ✓', Operating
aaa � f' • 'gaols and
y#, ,� �� tributions
y ,tip E tal e ' , %
Gam on / n Ffn � 11'
sale of
property a , f �, £ /� - N � ,
may. v / ' r \ i `
,.
£7 •a 10%
�� _ _ Capital grants
and
contributions
43%
Property taxes
Governmental Activities-Expenses
Interest on
Recreation long-term debt
Community and naturalist
Development 5� 3%
5 General government
v
,,, Fry. 28%
°,6,' 1.& N :tiny, _
eill 'g•t s , ,%f� 4y a,0%1: '/� ' f y// t f z : :<;4t2,1;51-,.,, ,,','-'� ? \
26%
public
works
33%
Public safety
28
Management's Discussion and Analysis
Business-Type Activities
Business-type activities decreased net assets by $629,140, compared to an overall increase of
$994,292 in net assets of the City of Fridley. Below are graphs showing the business-type
activities revenue and expense comparisons:
Business-Type Activities-Revenues
Unrestricted
investment earnings
Operating grants 2% I
•and contributions
v°fir lg"q/ , ,s
8 j
98%
Charges for services
Business-Type Activities-Expenses
storm water
3%
Water
19% b
+ 4
• 4 d 2 L 5%•
X:
33%
Sewer
29
Management's Discussion and Analysis
Financial Analysis of the Government's Funds
Governmental Funds. The focus of the City of Fridley'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 of Fridley'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 of Fridley's governmental funds reported
combined ending fund balances of $19,616,887. Approximately 92 percent of this total
amount ($17,977,691) constitutes unreserved fund balance. The remainder of the fund
balance ($1,639,196) is reserved because it has already been committed 1) to provide for
inventory ($54,116), 2) to pay debt service ($389,197), 3) for loan receivable ($507,669) and
4) for police purposes ($688,214).
The general fund's fund balance decreased by $61,887 in 2005. This was significantly less
than the decrease budgeted for.
The special assessment debt service fund's fund balance increased by $284,280 due to
prepaid special assessments collected on the 2005 Street Reconstruction Project.
The non-major special revenue fund's fund balances increased by $90,236 in 2005. This was
mainly due to the signing of a new cable franchise agreement.
Proprietary funds. The City of Fridley's proprietary funds provide the same type of
information found in the government-wide financial statements,but in more detail.
The unrestricted net assets in the respective proprietary funds are liquor $1,018,339, water
$3,207,587, sewer $3,837,984 and storm water $1,195,074. The liquor, water, sewer and
storm water funds had decreases in net assets of$124,134, $230,527, $214,311 and $60,168,
respectively.
Budgetary Highlights
General Fund
The original budget for elections was increased by $12,606 during the year. This was due to
the city holding an election that was not planned for when the original budget was approved.
The original budget for contingency was decreased by $99,093 during the year. This was
due to its budget being allocated to budgets in other departments.
Expenditures in total were less than the final budgetary estimates by $37,815. Significant
variances include the City Council department which expended $5,496 less than anticipated,
the Human Resources department which expended $4,784 less than anticipated, the
30
Management's Discussion and Analysis
Assessing department which expended $7,139 less than anticipated and the MIS department
which expended $12,753 less than anticipated.
Capital Asset and Debt Administration
Capital assets. The City of Fridley's, investment in capital assets for its governmental and
business type activities as of December 31, 2005, amounts to $40,528,125 (net of
accumulated depreciation). This investment in capital assets includes land, buildings and
structures, improvements other than buildings, machinery and equipment, infrastructure and
construction in progress.
City of Fridley's Capital Assets
(Net of Depreciation)
Governmental Activities Business-Type Activities Totals
2004 2005 2004 2005 2004 2005
Land $2,824,016 $2,840,316 $306,477 $306,477 $3,130,493 $3,146,793
Buildings and structures 3,622,524 3,317,928 640,800 610,994 $4,263,324 $3,928,922
Improvements other than buildings 1,085,065 1,071,577 6,772,165 6,446,722 $7,857,230 $7,518,299
Machinery and equipment 1,788,395 1,637,935 694,845 852,719 $2,483,240 $2,490,654
Infrastructure 8,909,802 8,318,763 10,480,310 11,517,928 $19,390,112 $19,836,691
Construction in progress 265,845 3,076,594 1,033,583 530,172 $1,299,428 $3,606,766
Total Capital Assets $18,495,647 $20,263,113 $19,928,180 $20,265,012 $38,423,827 $40,528,125
Additional information on the City of Fridley's capital assets can be found in Note 4.
Long-term debt. At the end of the current fiscal year, the City of Fridley had total bonded
debt outstanding of$13,955,000, a decrease of$1,235,000 from 2004. $1,805,000 of this is
for general obligation improvement debt which is supported by special assessments and a
property tax levy, an additional $8,335,000 is for general obligation tax increment debt which
financed the City's housing and redevelopment program, and $3,815,000 is general
obligation utility revenue bonds which financed utility improvements. In 2005, the City
issued $1,805,000 in general obligation improvement bonds and $4,645,000 in general
obligation tax increment refunding.
In addition, there is long-term debt in the amount of$744,205 for compensated absences.
City of Fridley's Outstanding Debt
General Obligation Improvement Bonds, General Obligation Tax Increment Bonds, General
Obligation Revenue Bonds, and Compensated Absences:
Governmental Activities Business-Type Activities Totals
2004 2005 2004 2005 2004 2005
General Obligation Improvement Bonds $ 190,000 $ 1,805,000 $ - $ - $ 190,000.00 $ 1,805,000.00
General Obligation Tax Increment Bonds 9,595,000 8,335,000 - - 9,595,000 8,335,000
General Obligation Revenue Bonds - - 5,405,000 3,815,000 5,405,000 3,815,000
Compensated Absences _ 785,785 744,205 - - 785,785 744,205
Total $ 10,570,785 $ 10,884,205 $ 5,405,000 $ 3,815,000 $ 15,975,785 $ 14,699,205
The City of Fridley has maintained a Aal rating from Moody's.
31
Management's Discussion and Analysis
State statutes limit the amount of general obligation debt a Minnesota city may issue to 2% of
total Estimated Market Value. The current debt limitation for the City of Fridley is
$45,168,942. None of the City's outstanding debt is counted within the statutory limitation.
Requests for information. This financial report is designed to provide a general overview
of the City of Fridley'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 Finance Director, 6431 University Avenue
NE, Fridley, Minnesota 55432.
32
BASIC FINANCIAL STATEMENTS
33
CITY OF
FRIDLEY
34
Exhibit A-1
CITY OF FRIDLEY,MINNESOTA
STATEMENT OF NET ASSETS
December 31,2005
Component Unit
Primary Government Housing&Redevelopment
Governmental Business-Type Totals Authority
Assets: Activities Activities 2005 2004 2005 2004
Cash and investments $22,660,895 $7,641,186 $30,302,081 $31,251,482 $15,739,617 $14,832,443
Cash held in escrow - - - 1,178,641 146,324 142,929
Receivables:
Accounts 190,033 1,501,694 1,691,727 1,670,447 443,309 443,309
Taxes 184,667 187 184,854 142,369 95,756 167,967
Special assessments 1,224,066 49,973 1,274,039 957,143 - -
Mortgage - - - - 1,119,820 972,147
Interest 67,015 - 67,015 83,539 20,076 20,006
Loan from component unit 480,123 - 480,123 541,244 - -
Notes 27,546 - 27,546 36,728 - -
Due from component unit 54,886 - 54,886 61,273 - -
Due from other governments 137,791 3,346 141,137 564,591 - -
Due from primary government - - - - - 12,478
Prepaid items - 216,828 216,828 210,146 - -
Inventories-at cost 54,116 597,426 651,542 651,651 - -
Land held for resale - - - - 1,122,000 1,055,000
Capital assets (net of accumulated depreciation):
Land 2,840,316 306,477 3,146,793 3,130,493 - -
Buildings and structures 3,317,928 610,994 3,928,922 4,263,324 - -
Improvements other than buildings 1,071,577 6,446,722 7,518,299 7,857,230 - -
Machinery and equipment 1,637,935 852,719 2,490,654 2,483,240 - -
Infrastructure 8,318,763 11,517,928 19,836,691 19,390,112 - -
Construction in progress 3,076,594 530,172 3,606,766 1,299,428 - -
Total assets 45,344,251 30,275,652 75,619,903 75,773,081 18,686,902 17,646,279
Liabilities:
Due to primary government - - - - 54,886 61,273
Accounts payable 392,846 305,488 698,334 664,473 260,063 267,285
Deposits payable 32,760 - 32,760 32,777 - -
Contracts payable 134,457 289,610 424,067 92,708 - -
Due to other governments 13,386 76,243 89,629 100,007 - -
Due to component unit - - - 12,478 - -
Salaries payable 295,032 25,222 320,254 349,040 - 1,528
Accrued interest payable 157,179 55,093 212,272 267,614 - -
Compensated absences payable:
Due within one year 641,227 - 641,227 613,417 - -
Due in more than one year 102,978 - 102,978 172,368 - -
Unearned revenue 104,627 - 104,627 234,043 - -
Loan payable to primary government:
Due within one year - - - - 64,215 61,121
Due in more than one year - - - - 415,908 480,123
Bonds payable:
Due within one year 1,555,000 395,000 1,950,000 3,060,000 - -
Due in more than one year 8,585,000 3,415,240 12,000,240 12,124,933 - -
Total liabilities 12,014,492 4,561,896 16,576,388 17,723,858 795,072 871,330
Net assets:
Invested in capital assets,net of related debt 18,458,113 16,454,772 34,912,885 32,833,894 - -
Restricted for:
Debt service 852,407 - 852,407 498,037 - -
Public safety 688,124 - 688,124 1,155,225 - -
Tax increment purposes - - - 11,510 2,654,382 2,819,574
Unrestricted 13,331,115 9,258,984 22,590,099 23,550,557 15,237,448 13,955,375
Total net assets $33,329,759 $25,713,756 $59,043,515 $58,049,223 $17,891,830 $16,774,949
The accompanying notes are an integral part of these financial statements.
35
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2005
Program Revenues
Operating
Charges For Grants and
Expenses Services Contributions
Functions/Programs
Primary government:
Governmental activities:
General government $4,448,175 $1,263,265 $7,777
Public safety 5,514,330 569,993 582,213
Public works 4,105,860 189,766 216,080
Community development 793,836 599,870 297,482
Recreation and naturalist 767,599 331,298 18,174
Interest on long-term debt 443,533 - -
Total governmental activities 16,073,333 2,954,192 1,121,726
Business-type activities:
Liquor 4,919,458 5,283,229 -
Water 2,070,032 1,771,846 -
Sewer 3,570,113 3,299,957 -
Storm water 320,596 384,860 600
Total business-type activities 10,880,199 10,739,892 600
Total primary government $26,953,532 $13,694,084 $1,122,326 ,
Component units:
Housing and Redevelopment Authority $2,938,372 $9,600 $ -
Total component units $2,938,372 $9,600 $0
General revenues:
Property taxes
Tax increment collections
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Gain on sale of property
Other
Transfers
Total general revenues
and transfers
Change in net assets
Net assets-beginning
Net assets-ending
The accompanying notes are an integral part of these financial statements.
36
Exhibit A-2
Net(Expense) Revenue and Changes in Net Assets Component Unit
Capital Primary Government Housing & Redevelopment
Grants and Governmental Business-Type Totals Authority
Contributions Activities Activities 2005 2004 2005 2004
$ - ($3,177,133) $ - ($3,177,133) ($2,403,309) $ - $ -
237,645 (4,124,479) - (4,124,479) (4,370,202) - -
1,419,461 (2,280,553) - (2,280,553) (2,170,968) - -
- 103,516 - 103,516 (71,710) - -
- (418,127) - (418,127) (611,946) - -
(443,533) - (443,533) (544,478) - -
1,657,106 (10,340,309) 0 (10,340,309) (10,172,613) 0 0
- - 363,771 363,771 371,230 - -
- - (298,186) (298,186) (322,890) - -
- - (270,156) (270,156) (7,419) - -
- - 64,864 64,864 46,662 - -
0 0 (139,707) (139,707) 87,583 0 0
$1,657,106 (10,340,309) (139,707) (10,480,016) (10,085,030) $0 $0
$ - ($2,928,772) ($3,099,422)
$0 (2,928,772) (3,099,422)
7,428,226 - 7,428,226 5,816,656 297,097 262,429
- - - - 3,224,205 3,079,596
3,365,739 - 3,365,739 3,436,473 67,633 66,442
511,464 168,445 679,909 559,991 418,549 230,246
434 - 434 680 - -
- - - - 38,169 86,402
657,878 (657,878) - - - -
11,963,741 (489,433) 11,474,308 9,813,800 4,045,653 3,725,115
1,623,432 (629,140) 994,292 (271,230) 1,116,881 625,693
31,706,327 26,342,896 58,049,223 58,320,453 16,774,949 16,149,256
$33,329,759 $25,713,756 $59,043,515 $58,049,223 $17,891,830 $16,774,949
The accompanying notes are an integral part of these financial statements.
37
CITY OF FRIDLEY,MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31,2005
Special
Grant Assessment
General Management Debt Service
Assets
Cash and investments $4,117,867 $80,986 $6,365,041
Receivables:
Accounts 44,973 - -
Taxes 169,857 - -
Special assessments 16,912 - 1,176,285
Interest 67,015 - -
Loan receivable from component unit - - 480,123
Developer note 27,546 - -
Due from other funds 160,680 - -
Due from component unit 42,839 - -
Due from other governments 15,051 62,019 -
Inventories,at cost 54,116 - -
Total assets $4,716,856 $143,005 $8,021,449
Liabilities and Fund Balances
Liabilities:
Accounts payable $241,036 $36,223 $ -
Deposits payable 27,510 - -
Contracts payable - - -
Salaries payable 208,864 1,322 -
Deferred revenue 125,352 104,626 1,175,241
Due to other funds - - -
Due to other governments 12,147 834 -
Due to component unit - - -
Total liabilities 614,909 143,005 1,175,241
Fund balances:
Reserved for:
Inventory 54,116 - -
Long-term receivables 27,546 - 480,123
Public safety - - - I
Debt service - - 389,197 j
Unreserved:
Designated reported in:
General Fund 4,020,285 - -
Special Revenue Funds - - -
Capital Project Funds - - -
Undesignated reported in:
Special Revenue Funds - - -
Debt Service Funds - - 5,976,888
Capital Project Funds - - -
Total fund balances 4,101,947 0 6,846,208
Total liabilities and fund balances $4,716,856 $143,005 $8,021,449
The accompanying notes are an integral part of these financial statements.
38
Exhibit A-3
Special
Tax Assessment Other Infra- Totals
Increment Construction Capital Governmental Activity Governmental Funds
Debt Service Capital Projects Improvements Funds Eliminations 2005 2004
$ - $1,393,118 $5,630,842 $1,785,565 $ - $19,373,419 $18,799,975
- - - 145,060 - 190,033 123,190
- - 8,478 6,332 - 184,667 142,164
- 30,592 277 - - 1,224,066 898,429
- - - - - 67,015 83,539
- - - - - 480,123 541,244
- - - - - 27,546 36,728
- - 102,745 - (263,425) - -
- - - 11,940 - 54,779 61,170
- - - 60,721 - 137,791 561,124
- - - - 54,116 47,094
$0 $1,423,710 $5,742,342 $2,009,618 ($263,425) $21,793,555 $21,294,657
$ - $ - $5,713 $51,576 $ - $334,548 $279,457
- 5,250 - - - 32,760 32,777
- 134,456 - - - 134,456 34,101
- - - 6,074 - 216,260 250,927
- 30,592 5,773 3,996 - 1,445,580 1,215,270
- 102,745 - 160,680 (263,425) - -
- - - 83 - 13,064 34,012
- - - - - - 12,478
0 273,043 11,486 222,409 (263,425) 2,176,668 1,859,022
- - - - - 54,116 47,094
- - - - - 507,669 577,972
- - - 688,214 - 688,214 1,155,225
- - - - - 389,197 509,547
- - - - - 4,020,285 4,080,012
- - - 1,086,076 - 1,086,076 554,343
- - 5,730,856 - - 5,730,856 7,207,879
- - - 12,919 - 12,919 (12,595)
- - - - - 5,976,888 5,522,647
- 1,150,667 - - - 1,150,667 (206,489)
0 1,150,667 5,730,856 1,787,209 0 19,616,887 19,435,635
$0 $1,423,710 $5,742,342 $2,009,618 ($263,425) $21,793,555 $21,294,657
Fund balance reported above $19,616,887 $19,435,635
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources,and
therefore,are not reported in the funds. 19,841,422 18,105,839
Other long-term assets are not available to pay for current-period expenditures and,
therefore,are deferred in the funds. 1,340,953 981,227
Long-term liabilities,including bonds payable,are not due and payable in the
current period and therefore are not reported in the funds. (10,297,179) (9,964,169)
Internal service funds are used by management to charge the cost of certain
activities to individual funds.The assets and liabilities are included in the
governmental statement of net assets 2,827,676 3,147,795
Net assets of governmental activities $33,329,759 $31,706,327
The accompanying notes are an integral part of these financial statements.
39
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2005
Special i
Grant Assessment 1
General Management Debt Service
Revenues:
Taxes $6,780,604 $ - $ -
Special assessments 608 - 542,548 '
Licenses and permits 688,776 - -
Intergovernmental revenue 1,575,177 344,003 -
Charges for services 1,302,764 - -
Fines and forfeits 163,166 - -
Investment income 106,513 - 123,845
Interest on loan - - 26,308
Miscellaneous 287,225 53,540 -
Total revenues 10,904,833 397,543 692,701
Expenditures:
Current:
General government 2,422,768 423,372 -
Public safety 5,204,551 - -
Public works 2,940,869 - -
Community development 671,173 - -
Recreation and naturalist 737,094 - -
Debt service - - 195,976
Capital outlay 259,690 - -
Contingency 907 - -
Total expenditures 12,237,052 423,372 195,976
Excess(deficiency)of revenues
over(under)expenditures (1,332,219) (25,829) 496,725
Other financing sources(uses):
Refunding bonds issued - -
-
Bond proceeds - - 37,555
Premium/(discount)on bonds issued - - -
Transfers in 1,273,883 25,829 -
Transfers out (3,551) - (250,000)
Total other financing sources (uses) 1,270,332 25,829 (212,445)
Net change in fund balance (61,887) 0 284,280
Fund balance-January 1 4,163,834 - 6,561,928
Fund balance- December 31 $4,101,947 $0 $6,846,208
fxil,- ) - I), 231 Sp)
The accompanying notes are an integral part of these financial statements.
40
Exhibit A-4
Special
Tax Assessment Other Infra- Totals
Increment Construction Capital Governmental Activity Governmental Funds
Debt Service Capital Projects Improvements Funds Eliminations 2005 2004
$ - $ - $346,468 $270,309 $ - $7,397,381 $5,809,631
- 6,769 984 - - 550,909 300,389
- - - 177,072 - 865,848 785,582
- - 742,745 105,799 - 2,767,724 3,207,482
- 130,027 - 303,390 - 1,736,181 1,533,253
- - - 938 - 164,104 176,878
- 2,723 145,432 32,820 - 411,333 325,307
- - - - - 26,308 29,253
1,697,027 - 45,286 542,821 - 2,625,899 2,085,069
1,697,027 139,519 1,280,915 1,433,149 0 16,545,687 14,252,844
- 373,562 170,164 854,630 - 4,244,496 3,155,617
- - - - - 5,204,551 5,156,529
- - - - - 2,940,869 2,608,316
- - - - - 671,173 593,393
- - - - - 737,094 960,723
6,357,387 - - - - 6,553,363 5,749,013
- 2,353,243 499,767 - - 3,112,700 869,770
- - - - - 907 -
6,357,387 2,726,805 669,931 854,630 0 23,465,153 19,093,361
(4,660,360) (2,587,286) 610,984 578,519 0 (6,919,466) (4,840,517)
- - - - - 3,920,000
4,645,000 1,767,445 - - - 6,450,000 -
3,850 (11,010) - - - (7,160) (10,992)
- 2,188,007 - - (2,829,841) 657,878 558,609
- - (2,088,007) (488,283) 2,829,841 - -
4,648,850 3,944,442 (2,088,007) (488,283) 0 7,100,718 4,467,617
(11,510) 1,357,156 (1,477,023) 90,236 0 181,252 (372,900)
11,510 (206,489) 7,207,879 1,696,973 - 19,435,635 19,808,535
$0 $1,150,667 $5,730,856 $1,787,209 $0 $19,616,887 $19,435,635
The accompanying notes are an integral part of these financial statements.
41
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42
Exhibit A-5
CITY OF FRIDLEY, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES,AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2005
2005 2004
Amounts reported for governmental activities in the
statement of activities (Exhibit A-2)are different because:
Net changes in fund balances-total governmental funds (Exhibit A-4) $181,252 ($372,900)
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. This is the amount by which capital outlays exceeded
depreciation in the current period. 1,735,583 (723,839)
Revenues in the statement of activities that do not provide current
financial resources are not reported as revenues in the funds. 359,726 (83,988)
The issuance of long-term debt(e.g., bonds, leases) provides current
resources to governmental funds,while the repayment of the
principal of financial long-term debt consumes the current
financial resources of governmental funds. Neither transaction,
however, has any effect on net assets. This amount is the net
effect of these differences in the treatment of long-term debt and
related items. (355,000) 1,235,000
Internal service funds are used by management to charge the cost of
certain activities to individual funds. This amount is net revenue
attributable to governmental activities. (320,119) (61,252)
Accrued interest reported in the statement of activities does not require
the use of current financial resources and, therefore, is not
reported as expenditures in governmental funds. 21,990 60,527
Change in net assets of governmental activities (Exhibit A-2) $1,623,432 $53,548
The accompanying notes are an integral part of these financial statements.
43
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2005
Business-Type Activities- Enterprise Funds
Liquor Water
Assets:
Current assets:
Cash and cash equivalents $746,438 $3,006,504
Cash with escrow agent - -
Accounts receivable 2,794 592,156
Taxes receivable:
Unremitted - -
Delinquent - -
Special assessments receivable - 8,255
Due from component units - -
Due from other governments - -
Inventories, at cost 590,158 7,268
Prepaid items - -
Total current assets 1,339,390 3,614,183
Noncurrent assets:
Capital assets:
Land 151,946 154,531
Buildings and structures 130,211 1,714,009
Improvements other than buildings 650,245 6,520,196
Machinery and equipment 208,930 1,517,948
Infrastructure - 8,551,553
Construction in progress - 530,172
Total capital assets 1,141,332 18,988,409
Less: Allowance for depreciation (515,581) (8,677,397)
Net capital assets 625,751 10,311,012
Total noncurrent assets 625,751 10,311,012
Total assets 1,965,141 13,925,195
Liabilities:
Current liabilities:
Accounts payable 260,940 37,559
Contracts payable - 289,610
Salaries payable 10,129 8,353
Payroll deductions payable
Compensated absences payable - -
Due to other governments 49,982 17,648
Accrued interest payable - 53,426
Bonds payable-current - 295,000
Total current liabilities 321,051 701,596
Noncurrent liabilities:
Compensated absences-noncurrent - -
Bonds payable-noncurrent - 3,314,920
Total noncurrent liabilities 0 3,314,920
Total liabilities 321,051 4,016,516
Net assets:
Invested in capital assets, net of related debt 625,751 6,701,092
Unrestricted 1,018,339 3,207,587
Total net assets $1,644,090 $9,908,679
The accompanying notes are an integral part of these financial statements.
44
Exhibit A-6
Governmental
Business-Type Activities-Enterprise Funds Activities-
Storm Totals Internal Service
Sewer Water 2005 2004 Funds
$2,830,341 $1,057,903 $7,641,186 $8,793,224 $3,287,476
- - - 1,178,641 -
809,811 96,933 1,501,694 1,547,257 -
- 55 55 91 -
- 132 132 114 -
- 41,718 49,973 58,714 -
- - - - 107
3,346 - 3,346 3,467 -
- - 597,426 604,557 -
216,828 - 216,828 210,146 -
3,860,326 1,196,741 10,010,640 12,396,211 3,287,583
- - 306,477 306,477 -
8,770 - 1,852,990 1,852,991 -
1,980,021 1,872,818 11,023,280 10,914,591 -
888,997 29,125 2,645,000 2,382,699 1,472,977
6,550,550 6,357,193 21,459,296 19,981,803 -
- - 530,172 1,033,583 -
9,428,338 8,259,136 37,817,215 36,472,144 1,472,977
(4,670,799) (3,688,426) (17,552,203) (16,543,964) (1,051,286)
4,757,539 4,570,710 20,265,012 19,928,180 421,691
4,757,539 4,570,710 20,265,012 19,928,180 421,691
8,617,865 5,767,451 30,275,652 32,324,391 3,709,274
6,989 - 305,488 344,702 58,298
- 289,610 58,607 -
6,740 - 25,222 23,813 -
- - - - 78,773
- - - - 641,227
8,613 - 76,243 65,995 322
- 1,667 55,093 88,445 -
100,000 395,000 1,590,000 -
22,342 101,667 1,146,656 2,171,562 778,620
- - - - 102,978
- 100,320 3,415,240 3,809,933 -
0 100,320 3,415,240 3,809,933 102,978
22,342 201,987 4,561,896 5,981,495 881,598
4,757,539 4,370,390 16,454,772 14,528,247 421,691
3,837,984 1,195,074 9,258,984 11,814,649 2,405,985
$8,595,523 $5,565,464 $25,713,756 $26,342,896 $2,827,676
The accompanying notes are an integral part of these financial statements.
45
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For The Year Ended December 31, 2005
Business-Type Activities- Enterprise Funds
Liquor Water
Sales $5,283,229 $ -
Cost of sales (4,061,768) -
Gross profit 1,221,461 0
Operating revenues:
Customer billings - 1,762,995
Charges for services - 7,578
Other revenues - 1,273
Total operating revenues 0 1,771,846
Total gross profit and operating revenues 1,221,461 1,771,846
Operating expenses:
Personal services 457,634 608,487
Supplies and other charges:
Disposal charges - -
Other 351,895 760,830
Depreciation 48,161 566,608
Total operating expenses 857,690 1,935,925
Operating income(loss) 363,771 (164,079)
Nonoperating revenues (expenses):
Intergovernmental revenue - -
Investment income 12,095 72,199
Interest expense - (134,107)
Bond issuance costs - -
Special assessments - -
Gain (loss)on disposal of capital assets - -
Total nonoperating revenues(expenses) 12,095 (61,908)
Income (loss)before transfers 375,866 (225,987)
Transfers:
Transfers in - 16,680
Transfers out (500,000) (21,220)
Total transfers (500,000) (4,540)
Change in net assets (124,134) (230,527)
Net assets-January 1 1,768,224 10,139,206
Net assets- December 31 $1,644,090 $9,908,679
The accompanying notes are an integral part of these financial statements.
46
Exhibit A-7
Governmental
Business-Type Activities- Enterprise Funds Activities-
Storm Infra Activity Totals Internal Service
Sewer Water Elimination 2005 2004 Funds
$ - $ - $ - $5,283,229 $5,376,428 $ -
- - (4,061,768) (4,188,290) -
0 0 0 1,221,461 1,188,138 0
3,299,957 372,409 - 5,435,361 5,371,662 -
- - - 7,578 7,578 151,388
- 8,402 - 9,675 9,867 -
3,299,957 380,811 0 5,452,614 5,389,107 151,388
3,299,957 380,811 0 6,674,075 6,577,245 151,388
548,178 100,700 - 1,714,999 1,648,153 57,796
2,521,757 - - 2,521,757 2,307,279 -
194,914 29,385 - 1,337,024 1,121,487 316,591
305,213 185,469 - 1,105,451 1,103,723 171,377
3,570,062 315,554 0 6,679,231 6,180,642 545,764
(270,105) 65,257 0 (5,156) 396,603 (394,376)
- 600 - 600 208 -
60,541 23,610 - 168,445 146,248 73,823
(51) (5,042) - (139,200) (196,501) -
- - - - (41,950) -
- 4,049 - 4,049 4,828 -
- - - - (75,605) 434
60,490 23,217 0 33,894 (162,772) 74,257
(209,615) 88,474 0 28,738 233,831 (320,119)
25,008 - (41,688) - - -
(29,704) (148,642) 41,688 (657,878) (558,609) -
(4,696) (148,642) 0 (657,878) (558,609) 0
(214,311) (60,168) 0 (629,140) (324,778) (320,119)
8,809,834 5,625,632 - 26,342,896 26,667,674 3,147,795
$8,595,523 $5,565,464 $0 $25,713,756 $26,342,896 $2,827,676
The accompanying notes are an integral part of these financial statements.
47
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31,2005
Business-Type Activities- Enterprise Funds
Liquor Water
Cash flows from operating activities:
Receipts from customers and users $5,284,548 $1,777,301
Receipts from interfund services provided - -
Payment to suppliers (4,475,112) (497,015)
Payment to employees (458,832) (607,951)
Net cash flows from operating activities 350,604 672,335
Cash flows from noncapital financing activities:
Intergovernmental revenue - -
Transfers out (500,000) (21,220)
Transfers in - 16,680
Special assessment collections - -
Net cash flows from
noncapital financing activities (500,000) (4,540)
Cash flows from capital and related
financing activities:
Acquisition of capital assets (14,589) (874,947)
Proceeds from issuance of revenue bonds - -
Payment to refunding escrow - -
Payment from refunding escrow - 983,340
Bond issuance costs - -
Principal paid on revenue bonds - (1,265,000)
Interest and paying agent fees on revenue bonds - (160,688)
Proceeds from sale of capital assets - -
Net cash flows from capital
and related financing activities (14,589) (1,317,295)
Cash flows from investing activities:
Investment income 12,095 72,199
Net increase (decrease)in cash and cash equivalents (151,890) (577,301)
Cash and cash equivalents-January 1 898,328 3,583,805
Cash and cash equivalents-December 31 $746,438 $3,006,504
Reconciliation of operating income (loss)to net cash
provided (used)by operating activities:
Operating income(loss) $363,771 ($164,079)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation 48,161 566,608
Changes in assets and liabilities:
Decrease (increase)in receivables (1,319) 5,454
Decrease (increase)in prepaid items - -
Decrease (increase)in inventories 760 6,371
Increase(decrease)in payables (60,769) 257,981
Total adjustments (13,167) 836,414
Net cash provided by operating activities $350,604 $672,335
The accompanying notes are an integral part of these financial statements.
48
Exhibit A-8
Governmental
Business-Type Activities- Enterprise Funds Activities-
Storm Totals Internal
Sewer Water 2005 2004 Service Fund
$3,330,928 $400,148 $10,792,925 $10,659,646 $ -
- - - 151,388
(2,716,774) (29,367) (7,718,268) (7,745,592) (298,391)
(548,504) (100,700) (1,715,987) (1,678,617) (94,903)
65,650 270,081 1,358,670 1,235,437 (241,906)
- 600 600 208 -
(29,704) (148,642) (699,566) (599,589) -
25,008 - 41,688 40,980 -
- 4,049 4,049 24,120 -
(4,696) (143,993) (653,229) (534,281) 0
(302,064) (250,804) (1,442,404) (1,326,553) (203,261)
- 3,001,650 -
- - - (1,189,368) -
- 195,692 1,179,032 - -
- - - (41,950) -
(10,000) (315,000) (1,590,000) (390,000) -
(305) (11,559) (172,552) (153,955) -
- 10,483 434
(312,369) (381,671) (2,025,924) (89,693) (202,827)
60,541 23,610 168,445 146,248 73,823
(190,874) (231,973) (1,152,038) 757,711 (370,910)
3,021,215 1,289,876 8,793,224 8,035,513 3,658,386
$2,830,341 $1,057,903 $7,641,186 $8,793,224 $3,287,476
($270,105) $65,257 ($5,156) $396,603 ($394,376)
305,213 185,469 1,105,451 1,103,723 171,377
30,972 19,373 54,480 (105,889) (107)
(6,682) - (6,682) (13,365) -
- 7,131 (45,981) -
6,252 (18) 203,446 (99,654) (18,800)
335,755 204,824 1,363,826 838,834 152,470
$65,650 $270,081 $1,358,670 $1,235,437 ($241,906)
The accompanying notes are an integral part of these financial statements.
49
Exhibit A-9
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF FIDUCIARY NET ASSETS
December 31, 2005
2005 2004
Assets:
Cash and investments $24,025 $20,580
Receivables:
Accounts 1,956 1,590
Taxes:
Unremitted 53 57
Delinquent 102 80
Total assets 26,136 22,307
Liabilities:
Due to other governments 26,136 22,307
Net assets:
Unreserved:
Undesignated - -
Total net assets $0 $0
The accompanying notes are an integral part of these financial statements.
50
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
1. Summary of Significant Accounting Policies
The City of Fridley was incorporated July 1, 1949, under Chapter 410.03 of the Statutes of the State
of Minnesota providing for a council-manager form of government under the "Home Rule Charter
City" concept. The City provides the following services as authorized by its charter: general
administrative services, public safety(police and fire), public improvements, planning and zoning, and
culture and recreation.
The financial statements of the City of Fridley 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 of Fridley(the primary government)and its
component units. The component units discussed below are included in the City's
reporting entity because of the significance of their operational or financial relationships
with the City.
Component Units
In conformity with generally accepted accounting principles, the financial statements of the
component units have been included in the financial reporting entity as discretely presented
component units.
Discretely Presented Component Unit- The Fridley Housing and Redevelopment Authority
(HRA) is governed by commissioners appointed by the Fridley City Council. The HRA is
responsible for providing housing and redevelopment assistance to the City and its
residents. Funding for the various programs administered by the HRA is provided through
the issuance of tax increment revenue bonds and general obligation tax increment bonds
guaranteed by the City. Separate financial statements are not prepared for the HRA.
B. Government-Wide and Fund Financial Statements
The government-wide financial statements(i.e., the statement of net assets and the
statement of changes in net assets)report information on all of the nonfiduciary activities of
the primary government and its component units. For the most part,the effect of interfund
activity has been removed from these statements. Governmental activities, which normally
are supported by taxes and intergovernmental revenues, are reported separately from
business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or business-type activity is offset by program revenues. Direct expenses are those
that are clearly identifiable with a specific function or business-type activity. Program
revenues include 1)charges to customers or applicants who purchase, use, or directly
benefit from goods, services, or privileges provided by a given function or business-type
activity and 2)grants and contributions that are restricted to meeting the operational or
capital requirements of a particular function or business-type activity. Taxes and other items
not included among program revenues are reported instead as general revenues.
51
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the Proprietary Fund
financial statements. Revenues are recorded when earned and expenses are recorded
when a liability is incurred, regardless of the timing of related cash flows. Property taxes are
recognized as revenues in the year for which they are levied. Grants and similar items are
recognized as revenue as soon as all eligibility requirements imposed by the provider have
been met.
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 government 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 government.
The government reports the following major governmental funds:
The general fund is the government's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in
another fund.
The grant management special revenue fund administers grants received from a variety
of intergovernmental agencies. In most cases, grant funds are provided on a
reimbursement basis following proper documentation of expenditures, however, in some
cases the money is provided in advance to spend on specific activities outlined in the
grant.
The special assessment debt service fund services debt on the general obligation
improvement bonds that were issued to finance construction of public improvements.
Special assessment improvements are paid for completely or in part by property owners
deemed to have benefited from such improvements.
52
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
The tax increment debt service fund services the debt of the tax increment bonds. Tax
increment money is used to service the debt on redevelopment related bonds.
The special assessment construction capital projects fund is used to account for the
construction of public improvements, such as residential streets, sidewalks, and storm
sewers or for the provision of services that are to be paid primarily by the benefited
property owner.
The capital improvements fund is used to account for the monies received from property
taxes that are used to finance major improvements and the acquisition of assets that
require a large capital outlay.
The government reports the following major proprietary funds:
The liquor fund accounts for operations of the municipal liquor stores.
The water fund accounts for the water service charges which are used to finance the
water system operating expenses.
The sewer fund accounts for the sewer service charges which are used to finance the
sanitary sewer system operating expenses.
The storm water fund accounts for storm sewer charges which are used to finance the
storm sewer operating expenses.
Additionally,the government reports the following fund types:
Internal Service Funds are used to account for employee fringe benefits, insurance
deductibles and maintenance and upgrading of information systems that are provided
on a cost reimbursement or fee basis to departments or agencies within the City. These
funds are essential for segregating costs for determining the total cost of providing a
service and for assuring that the goods and services provided are properly utilized.
Agency Funds are used to account for monies on behalf of the Six Cities Watershed
District and the North Metro Convention and Tourism Bureau.
Private-sector standards of accounting and financial reporting issued prior to December 1,
1989, generally are followed in both the government-wide and proprietary-fund financial
statements to the extent that those standards do not conflict with or contradict guidance of
the Governmental Accounting Standards Board. Governments also have the option of
following subsequent private-sector guidance for their business-type activities and enterprise
funds, subject to this same limitation. The government has elected not to follow subsequent
private-sector guidance.
As a general rule the effect of interfund activity has been eliminated from the government-
wide financial statements. Exceptions to this general rule are transactions that would be
treated as revenues, expenditures or expenses if they involved external organizations, such
as buying goods and services or payments in lieu of taxes, are similarly treated when they
involve other funds of the City of Fridley. Elimination of these charges would distort the direct
costs and program revenues reported for the various functions concerned.
53
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
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 liquor, water, sewer and storm water enterprise funds
are charges to customers for sales and services. Operating expenses for enterprise funds
include the cost of sales and services, administrative expenses, and depreciation on capital
assets. All revenues and expenses not meeting this definition are reported as nonoperating
revenues and expenses.
When both restricted and unrestricted resources are available for an allowable use, it is the
government's policy to use restricted resources first,then unrestricted resources as they are
needed.
D. Budgets
The City Charter grants the City Council full authority over the financial affairs of the City.
The City Manager is charged with the responsibility of preparing the estimates of the
annual budget and the enforcement of the provisions of the budget as specified in the City
Charter. Upon adoption of the annual budget resolution by the Council, it becomes the
formal appropriation budget for City operations. All budget adjustments must be approved
by the Council. Budgets for the General, Special Revenue and Capital Improvement
Capital Projects Funds are adopted on a basis consistent with accounting principles
generally accepted in the United States of America. Budgeted expenditure appropriations
lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments
for the expenditure of monies are recorded in order to reserve that portion of the
appropriation, is not employed by the City because it is, at present, not considered
necessary to assure effective budgetary control or to facilitate effective cash management.
E. Legal Compliance Budgets
The City follows these procedures in establishing the budgetary data reflected in the
financial statements:
1. The City Manager submits to the City Council a proposed operating budget for the
fiscal year commencing the following January 1. The operating budget includes
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.
54
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
4. The City Council may authorize transfer of budgeted amounts between departments
within any fund.
5. Reported budget amounts are as originally adopted or as amended by Council
approved transfers. The City Charter limits appropriations to the total estimated
revenues and fund balances. If actual revenues exceed the original estimates,
appropriations may be increased by the Council up to the amount of revenue
increases.
6. All budget amounts lapse at the end of the year to the extent they have not been
expended or encumbered. Encumbrances are reappropriated into the following year's
budget.
7. Annual budgets are legally adopted for the General Fund and Special Revenue Funds.
Formal budgeting integration is employed as a management control device during the
year for each of these funds. Formal budgetary integration is not employed for Debt
Service Funds because effective budgetary control is achieved through the bond
indenture provisions. Budgetary control for other Capital Projects Funds is
accomplished through the use of project controls.
8. As required by the City Charter, budgetary control is maintained within department at
the level of three major categories of expenditures: salaries and wages; ordinary
expenses; and capital outlay. This is the level of control at which expenditures may not
legally exceed appropriations.
9. The General Fund budget includes prior year encumbrances which were
reappropriated to the current year. Expenditures for the items encumbered are
included in the current year's expenditures.
F. Cash and Investments
Cash balances from all funds are combined and invested to the extent available in certificates
of deposit, U.S. government securities and other securities authorized by State Statute.
Investment income is allocated to the respective funds on the basis of applicable cash
balance participation by each fund. Investments are stated at fair value, based upon quoted
market prices as of the balance sheet date. Investment income is accrued at the balance
sheet date.
The City provides temporary advances to funds that have insufficient cash balances by
means of an advance from another fund shown as interfund receivables in the advancing
fund, and an interfund payable in the fund with the deficit, until adequate resources are
received. These interfund balances are eliminated on the government-wide financial
statements.
For purposes of the statement of cash flows the City considers 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 proprietary funds have original maturities of 90 days or
less. Therefore the entire balance in the Proprietary Funds is considered cash equivalents.
Cash and investments held by escrow agent include balances held in segregated accounts
that are established for specific purposes.
55
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
G. Receivables and Payables
During the course of operations, numerous transactions occur between individual funds for
goods provided or services rendered. Short-term interfund loans are classified as "interfund
receivables/payables." All short-term interfund receivables and payables at December 31,
2005 are planned to be eliminated in 2006. Any residual balances outstanding between the
governmental activities and business-type activities are reported in the government-wide
financial statements as"internal balances."
Uncollectible property taxes and special assessments are not material and therefore have not
been reported. Because utility bills are considered liens on property, no estimated
uncollectible amounts are established. Uncollectible amounts are not material for other
receivables and have not been reported.
H. Property Tax Revenue Recognition
The City Council annually adopts a tax levy and certifies it to the County in December
(levy/assessment date)of each year for collection in the following year. The County is
responsible for billing and collecting all property taxes for itself,the City,the local School
District and other taxing authorities. Such taxes become a lien on January 1 and are
recorded as receivables by the City at that date. Real property taxes are payable (by
property owners)on May 15 and October 15 of each calendar year. Personal property taxes
are payable by taxpayers on February 28 and June 30 of each year. These taxes are
collected by the County and remitted to the City on or before July 7 and December 2 of the
same year. Delinquent collections for November and December are received the following
January. The City has no ability to enforce payment of property taxes by property owners.
The County possesses this authority.
Government-Wide Financial Statements
The City recognizes property tax revenue in the period for which the taxes were levied.
Uncollectible property taxes are not material and have not been reported.
Governmental Fund Financial Statements
The City recognizes property tax revenue when it becomes both measurable and available to
finance expenditures of the current period. In practice, current and delinquent taxes and
State credits received by the City in July, December and January are recognized as revenue
for the current year. Taxes collected by the County by December 31 (remitted to the City the
following January)and taxes and credits not received at year end are classified as delinquent
and due from County taxes receivable. The portion of delinquent taxes not collected by the
City in January is fully offset by deferred revenue because they are not available to finance
current expenditures.
Market Value Homestead Credit
Property taxes on residential agricultural homestead property(as defined by State Statutes)
are partially reduced by market value homestead credit(MVHC). This credit is paid to the
City by the State in lieu of taxes levied against homestead property. The State remits this
credit through installments each year. The credit is recognized as revenue by the City at the
time of collection.
56
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
J. Special Assessment Revenue Recognition
Special assessments are levied against the benefited properties for the assessable costs of
special assessment improvement projects in accordance with State Statutes. The City
usually adopts the assessment rolls when the individual projects are complete or
substantially complete. The assessments are collectible over a term of years generally
consistent with the term of years of the related bond issue. Collection of annual installments
is handled by the County in the same manner as property taxes. Property owners are
allowed to 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
remitted to the City in payment of delinquent special assessments. 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. Special assessments that are collected by the County by December 31
(remitted to the City the following January)are also recognized as revenue for the current
year. All remaining delinquent, deferred and special deferred assessments receivable in
governmental funds are completely offset by deferred revenues.
K. Inventories
Governmental Funds
Inventories of the general fund are stated at cost,which approximates market, using the first-
in, first out(FIFO) method. The primary government does not maintain material amounts of
inventory within the other governmental funds. Inventories of governmental funds are
recorded as expenditures when consumed rather than when purchased.
Proprietary Funds
Liquor fund inventories are valued on the average cost basis. Other proprietary funds
inventory items are expensed at the time they are sold or used (consumption method).
57
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
L. 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.
M. 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 government 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 government chose to include all such items regardless of their
acquisition date or amount. The City was able to estimate the historical cost for the initial
reporting of these assets through back-trending (i.e., estimating the current replacement cost
of the infrastructure to be capitalized and using an appropriate price-level index to deflate the
cost of the infrastructure to be capitalized and using an appropriate price-level index to
deflate the cost to the acquisition year or estimated acquisition year).
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, 2005, no interest was capitalized in connection with construction in
progress.
Property, plant and equipment of the primary government, and the component units, are
depreciated using the straight line method over the following estimated useful lives:
Assets
Improvements other than building 20—25 years
Buildings and structures 20—25 years
Machinery and equipment 5— 10 years
Infrastructure 25 years
58
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
N. Compensated Absences
All liabilities for compensated absences, both current and long-term, for annual leave,
severance and separation pay are accounted for in the Employee Benefit Fund, an Internal
Service Fund. Each year compensated absence expenditures and expenses are recorded in
the Governmental and Proprietary Funds respectively, equivalent to the full amount accrued
by fund employees during the year. These charges are offset by a corresponding transfer of
assets from the home department funds to the Employee Benefit Fund to fund the liability.
This liability represents the maximum possible dilution of Employee Benefit Fund assets by
retirements or extended leaves by employees. The personnel ordinance limits the annual
accumulation of benefits that can be accumulated from year-to-year.
O. Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type
statement of net assets. Bond premiums and discounts, as well as issuance costs, are
generally immaterial and are expensed in the year of bond issuance. Material premiums and
discounts are deferred and amortized over the life of the bonds.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of
debt issued is reported as other financing sources. Premiums received on debt issuances
are reported as other financing sources while discounts on debt issuances are reported as
other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds
received, are reported as debt service expenditures.
P. Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance for
amounts not appropriable for expenditure or legally segregated for a specific future use.
Designated fund balances represent tentative plans for future use of financial resources.
Q. 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.
59
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
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. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
1. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL
FUND BALANCE SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET
ASSETS
The governmental fund balance sheet includes reconciliation between fund balance—
total governmental funds and net assets—governmental activities as reported in the
government-wide statement of net assets. One element of that reconciliation explains
that"long-term liabilities, including bonds payable, are not due and payable in the current
period and therefore are not reported in the funds." The details of this ($10,297,179)
difference are as follows:
Bonds payable ($10,140,000)
Accrued interest payable (157,179)
Net adjustment to decrease net changes in fund
balances-total governmental funds to arrive at
changes in net assets of governmental activities ($10,297,179)
60
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
2. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL
FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES AND THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
The governmental fund statement of revenues, expenditures and changes in fund
balances includes reconciliation between net changes in fund balances—total
governmental funds and changes in net assets of governmental activities as reported in
the government-wide statement of activities. One element of that reconciliation explains
that"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." The details of this$1,735,583 difference
are as follows:
Contribution of capital assets $60,124
Loss on disposal of capital assets (56,030)
Capital outlay 3,280,250
Depreciation expense (1,548,761)
Net adjustment to increase net changes in fund
balances-total governmental funds to arrive at
changes in net assets of governmental activities $1,735,583
Another element of that reconciliation states that"revenues on the statement of activities
that do not provide current financial resources are not reported as revenues in the funds."
The details of this$359,726 difference are as follows:
General property taxes deferred revenue:
At December 31, 2004 ($87,143)
At December 31, 2005 117,988
Special assessments deferred revenue:
At December 31,2004 (894,084)
At December 31, 2005 1,222,965
Net adjustments to increase net changes in fund
balances-total governmental funds to arrive at
changes in net assets of governmental activities $359,726
61
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Another element of that reconciliation states that"the issuance of long-term debt(e.g.,
bonds, leases)provides current financial resources to governmental funds, while the
repayment of the principal on long-term debt consumes the current financial resources of
governmental funds." Neither transaction, however, has any effect on net assets. The
details of this ($355,000)difference are as follows:
Debt issued:
Tax increment bonds ($4,645,000)
Improvement bonds (1,805,000)
Principal repayments:
Improvement bonds 190,000
Tax increment bonds 5,905,000
Net adjustment to decrease net changes in fund
balances-total governmental funds to arrive at
changes in net assets of governmental activities ($355,000)
T. RECLASSIFICATIONS
Certain amounts presented in the prior year data have been reclassified in order to be
consistent with the current year's presentation.
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;
62
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
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, 2005 the carrying amount of the City's deposits with financial institutions
was$688,832, and the Fridley HRA was$365,508. Of these deposits, $0 were
uncollateralized.
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.
63
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
g) General obligation temporary bonds of the same governmental entity issued under
section 429.091, subdivision 7;469.178, subdivision 5; or 475.61, subdivision 6.
As of December 31, 2005 the City had the following investments and maturities:
Investment Maturities(in Years)
Fair Less Over
Investment Type Rating Value Than 1 1-5 6-10 10 Years
Federal Home Loan Mortgage Co. AAA $2,486,900 $1,989,940 $496,960 $ - $ -
Federal Home Loan Bank AAA 18,421,962 5,943,450 12,478,512 - -
Money market N/A 8,699,837 8,699,837 - - -
Total $29,608,699 $16,633,227 $12,975,472 $0 $0
Total investments $29,608,699
Deposits 688,832
Petty cash 4,550
Total cash and investments $30,302,081
As of December 31, 2005 the HRA had the following investments and maturities:
Investment Maturities(in Years)
Fair Less Over
Investment Type Rating Value Than 1 1-5 6-10 10 Years
Federal Home Loan Mortgage Co. AAA $2,975,330 $1,979,690 $995,640 $ - $ -
Federal Home Loan Bank AAA 2,975,940 2,975,940 - - -
United States Treasury Bond AAA 203,260 - - 203,260 -
Money market N/A 9,365,903 9,365,903 - - -
Total $15,520,433 $14,321,533 $995,640 $203,260 $0
Total investments $15,520,433
Deposits 365,508
Total cash and investments $15,885,941
C. Investment Risks
The City's investment policy is to follow Minnesota State Statutes as described above which
reduces the City's exposure to credit, custodial credit, and interest rate risks. Specific risk
information for the City is as follows:
Interest rate risk—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.
64
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Concentration of credit risk—The City places no limit on the amount the City may invest in
any one issuer. More than 5% of the City's investments are in various holdings as follows:
Federal Home Loan Mortgage Co. 8.40%
Federal Home Loan Bank 62.22%
Money market 29.38%
Concentration of credit risk—The HRA places no limit on the amount the HRA may invest in
any one issuer. More than 5%of the HRA's investments are in various holdings as follows:
Federal Home Loan Mortgage Co. 19.17%
Federal Home Loan Bank 19.17%
Money market 60.35%
3. Receivables
Significant receivables balances not expected to be collected within one year of December 31, 2005
are as follows:
Primary Government
Major Funds
Special
Assessment Capital Nonmajor
General Debt Service Improvements Funds Total
Special assessments receivable $11,421 $793,629 $149 $20,658 $825,857
Loans receivable 18,364 415,908 - - 434,272
Delinquent property taxes 80,028 - 4,098 2,974 87,100
$109,813 $1,209,537 $4,247 $23,632 $1,347,229
65
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Governmental funds also defer
revenue recognition in connection with resources that have been received, but not yet earned. At the
end of the current fiscal year, the various components of deferred revenue and unearned revenue
reported in the governmental funds were as follows:
Unavailable Unearned Total
Delinquent property taxes receivable(General Fund) $108,441 $ - $108,441
Delinquent property taxes receivable(Capital Improvements Fund) 5,551 - 5,551
Delinquent property taxes receivable(Nonamjor Funds) 3,996 - 3,996
Special assessments not yet due(General Fund) 16,911 - 16,911
Special assessments not yet due(Special Assessment Debt Service Fund) 1,175,241 - 1,175,241
Special assessments not yet due(Capital Improvements Fund) 222 - 222
Special assessments not yet due(Nonmajor Funds) 30,592 - 30,592
Unearned grant funds(Grant Management Fund) - 104,626 104,626
Total deferred/unearned revenue for governmental funds $1,340,954 $104,626 $1,445,580
4. Capital Assets
Capital asset activity for the year ended December 31, 2005 was as follows:
Beginning Ending
Primary Government Balance Increases Decreases Balance
Governmental activities:
Capital assets, not being depreciated:
Land $2,824,016 $16,300 $ - $2,840,316
Construction in progress 265,845 2,810,749 3,076,594
3,076,594
Total capital assets,not being depreciated 3,089,861 2,827,049 0 5,916,910
Capital assets, being depreciated:
Buildings and structures 7,773,311 - - 7,773,311
Machinery and equipment 7,271,410 521,076 (395,730) 7,396,756
Improvements 3,782,585 195,510 - 3,978,095
Infrastructure 24,671,275 - (448,419) 24,222,856
Total capital assets,being depreciated 43,498,581 716,586 (844,149) 43,371,018
Less accumulated depreciation for:
Buildings and structures 4,150,787 304,596 - 4,455,383
Machinery and equipment 5,483,015 633,214 (357,408) 5,758,821
Improvements 2,697,520 208,998 - 2,906,518
Infrastructure 15,761,473 573,331 (430,711) 15,904,093
Total accumulated depreciation 28,092,795 1,720,139 (788,119) 29,024,815
Total capital assets being depreciated-net 15,405,786 (1,003,553) (56,030) 14,346,203
Governmental activities capital assets-net $18,495,647 $1,823,496 ($56,030) $20,263,113
I
66
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Beginning Ending
Primary Government Balance Increases Decreases Balance
Business-type activities:
Capital assets,not being depreciated:
Land $306,477 $ - $ - $306,477
Construction in progress 1,033,583 530,172 (1,033,583) 530,172
Total capital assets,not being depreciated 1,340,060 530,172 (1,033,583) 836,649
Capital assets,being depreciated:
Buildings and structures 1,852,990 - - 1,852,990
Improvements other than buildings 10,914,590 145,896 (37,206) 11,023,280
Machinery and equipment 2,382,699 322,426 (60,125) 2,645,000
Infrastructure 19,981,803 1,477,494 - 21,459,297
Total capital assets,being depreciated 35,132,082 1,945,816 (97,331) 36,980,567
Less accumulated depreciation for:
Buildings and structures 1,212,190 29,806 - 1,241,996
Improvements other than buildings 4,142,425 471,339 (37,206) 4,576,558
Machinery and equipment 1,687,854 164,432 (60,005) 1,792,281
Infrastructure 9,501,493 439,876 - 9,941,369
Total accumulated depreciation 16,543,962 1,105,453 (97,211) 17,552,204
Total capital assets being depreciated-net 18,588,120 840,363 (120) 19,428,363
Business-type activities capital assets-net $19,928,180 $1,370,535 ($1,033,703) $20,265,012
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government $339,939
Public safety 191,345
Public works, including depreciation of general infrastructure assets 925,483
Community development 2,947
Recreation and naturalist 29,041
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets 171,378
Total depreciation expense-governmental activities $1,660,133
Business-type activities:
Liquor $48,162
Water 566,609
Sewer 305,213
Storm water 185,469
Total depreciation expense-business-type activities $1,105,453
67
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
5. Long-Term Debt
The City issues general obligation bonds to provide funds for the acquisition and construction of
major capital facilities. The reporting entity's long-term debt is segregated between the amounts to
be repaid from governmental activities and amounts to be repaid from business-type activities.
As of December 31, 2005, the governmental long-term bonded debt and loans of the financial
reporting entity consisted of the following:
Governmental Activities:
$3,920,000 General Obligation Tax Increment Refunding Bonds of 2004 due in varying annual
installments of$230,000-$605,000 through February 1,2012;interest at 2.00%-4.35%
February 1,2012;interest at 5.10%-5.65%. $3,690,000
$1,805,000 General Obligation Improvement Bonds of 2005 due in varying annual installments of
$155,000-$210,000 through February 1,2016;interest at 2.80%-3.750%. 1,805,000
$4,645,000 General Obligation Tax Increment Refunding Bonds of 2005 due in varying annual
installments of$1,090,000-$1,160,000 through February 1,2009;interest at 8.00%. 4,645,000
Subtotal governmental activities 10,140,000
Business-Type Activities:
$620,000 General Obligation Water Revenue Bonds of 1992,Series B,due in varying annual
installments of$35,000-$55,000 through February 1,2007;interest at 3.00%-5.70%. $110,000
$1,180,000 General Obligation Water Revenue Bonds of 1998,due in varying annual
installments of$90,000-$130,000 through February 1,2011. 710,000
$1,790,000 General Obligation Water Revenue Bonds of 2004 due in varying annual installments
of$50,000-$230,000 through February 1,2019;interest at 2.5%-4.00%. 1,790,000
$1,205,000 General Obligation Water and Storm Water Revenue Bonds of 2004 due in varying
annual installments of$160,000-$235,000 through February 1,2012;interest at 2.0%-3.25%. 1,205,000
Unamortized discount (4,760)
Subtotal business-type activities 3,810,240
Total primary government $13,950,240
Component Units:
$1,500,000 loan payable to primary government. Due in annual installments of
$87,429,through February 1,2012;interest at 5%. $480,123
Current Refunding
On June 15, 2005, the City issued the $4,645,000 General Obligation Tax Increment Refunding
Bonds, Series 2005B with an average interest rate of 2.96% to refund the 2006 through 2009
maturities aggregating $4,625,000 in principal amount of the City's $9,575,000 General Obligation
Tax Increment Bonds, Series 1997A with an average interest rate of 5.1%. The net proceeds of
$4,612,436 (after payment of $36,415 of issuance costs) plus an additional $16,142 of escrow
68
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
interest earnings were used to retire all outstanding principal of the refunded bonds on August 1,
2005 (the call date).
The City refunded the 1997A Bonds to reduce its total debt service payments over the next four years
by $159,210 and to obtain an economic gain (difference between the present value of the debt
service payments on the old and new debt)of$149,582.
Annual debt service requirements to maturity for general obligation bonds and loans are as follows:
Primary Government Component Unit
Governmental Activities Business-Type Activities HRA
Year Ending G.O.Improvement Tax Increment Revenue Bonds Loan Payable
December 31, Principal Interest Principal Interest Principal Interest Principal Interest
2006 $ - $67,466 $1,555,000 $262,965 $395,000 $126,024 $64,215 $23,213
2007 155,000 57,653 1,670,000 199,488 405,000 113,348 67,467 19,963
2008 160,000 53,163 1,710,000 149,015 300,000 101,943 70,882 16,547
2009 165,000 48,368 1,680,000 96,495 315,000 91,726 74,470 12,959
i 2010 170,000 43,215 545,000 59,906 320,000 80,756 78,240 9,188
2011 175,000 37,694 570,000 38,003 330,000 68,955 82,201 5,227
2012 185,000 31,751 605,000 13,159 345,000 57,229 42,648 1,066
2013 190,000 25,375 - - 175,000 48,779 - -
2014 195,000 18,636 - - 185,000 42,836 - -
2015 200,000 - - - 190,000 36,413 - -
2016 210,000 - - - 200,000 29,388 - -
2017 - - - - 205,000 21,844 - -
2018 - - - - 220,000 13,600 - -
2019 - - - - 230,000 4,600 - -
Total $1,805,000 $383,321 $8,335,000 $819,031 $3,815,000 $837,438 $480,123 $88,163
Long-term liability activity for the year ended December 31, 2005,was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
G.O.improvement bonds $190,000 $1,805,000 ($190,000) $1,805,000 $ -
Tax increment bonds 9,595,000 4,645,000 (5,905,000) 8,335,000 1,555,000
Total bonds payable 9,785,000 6,450,000 (6,095,000) 10,140,000 1,555,000
Compensated absences 785,785 599,567 (641,147) 744,205 641,227
Total government activity
long-term debt $10,570,785 $7,049,567 ($6,736,147) $10,884,205 $2,196,227
Business-type activities:
Bonds payable:
G.O. revenue bonds $5,405,000 $ - ($1,590,000) $3,815,000 $395,000
Component units:
Loan payable $541,244 $ - ($61,121) $480,123 $64,215
Compensated absences are generally liquidated by the General Fund. The loan payable is liquidated
by the HRA Revolving Loan Fund. All long-term bonded indebtedness outstanding at December 31,
2005 is backed by the full faith and credit of the City, including improvement and revenue bond
issues. Delinquent assessments receivable at December 31,2005 totaled $18,927.
69
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
6. Defined Benefit Pension Plans-Statewide
A. Plan Description
All full-time and certain part-time employees of the City of Fridley are covered by defined
benefit plans administered by the Public Employees Retirement Association of Minnesota
(PERA). PERA administers the Public Employees Retirement Fund (PERF) 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 Statute, Chapters 353 and 356.
PERF 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.
PERA issues a publicly available financial report that includes financial statements and
required supplementary information for PERF and PEPFF. That report may be obtained on
the web at 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.
B. 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.
PERF Basic Plan members and Coordinated Plan members were required to contribute
9.10%and 5.10%, respectively, of their annual covered salary. Contribution rates in the
Coordinated Plan will increase in 2006 to 5.5%. PEPFF members were required to
contribute 6.20%of their annual covered salary in 2005. That rate will increase to 7.0% in
2006. The City of Fridley is required to contribute the following percentages of annual
covered payroll: 11.78%for Basic Plan PERF members, 5.53%for Coordinated Plan PERF
members, and 9.30%for PEPFF members. Employer contribution rates for the Coordinated
Plan and PEPFF will increase to 6.0% and 10.5% respectively, effective January 1,2006.
The City's contributions for the years ending December 2003, 2004 and 2005 equal to the
contractually required contributions for each year as set by state statute for PERF and
PEPFF as follows:
PERF PEPFF
2003 $258,241 $255,993
2004 257,163 268,253
2005 257,111 271,444
70
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
C. Public Employees Retirement Association (PERA) -Defined Contribution
Plan Description
All council members of the City of Fridley are covered by a defined contribution pension plan
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the Public Employees Defined Contribution Plan (PEDCP) which is a multiple-
employer deferred compensation plan.
Benefit Provisions and Contribution Rates
The PEDCP is a tax qualified plan under Section 401(a)of the Internal Revenue Code and all
contributions by or on behalf of employees are tax deferred until time of withdrawal.
Plan benefits depend solely on amounts contributed to the plan plus investment income, less
administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies the employee and
employer contribution rates for those qualified personnel who elect to participate. An eligible
elected official who decides to participate contributes 5 percent of salary which is matched by
the elected official's employer. For ambulance service personnel, employer contributions are
determined by the employer, and for salaried employees must be a fixed percentage of
salary. Employer contributions for volunteer personnel may be a unit value for each call or
period of alert duty. Employees who are paid for their services may elect to make member
contributions in an amount not to exceed the employer share. Employer and employee
contributions are combined and used to purchase shares in one or more of the seven
accounts of the Minnesota Supplemental Investment Fund. For administering the plan,
PERA receives 2 percent of employer contributions and four-tenths of one percent of the
assets in each member's account.
Total contributions made by the City during fiscal year 2005 were:
Percentage of
Amount Covered Payroll Required
Employees Employer Employees Employer Rates
PEDCP $1,928 $1,928 5.00% 5.00% 5.00%
7. Defined Contribution Pension Plan-Fridley Volunteer Firefighters Relief Association
Plan Description
The Fridley Volunteer Firefighters Relief Association (Association), is a single employer public
employee retirement system that acts as a common investment administrator for all of the City's
firefighters. Pursuant to a 1987 amendment to its by-laws, the pension plan is a defined
contribution plan, prior to 1987 the pension plan was a defined benefit pension plan.
Benefits and contribution requirements are established by Association's by-laws and can be
amended by the Association's Board of Trustees with approval from the City of Fridley. All
provisions are within limitations established by Minnesota Statutes.
71
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Type of Benefit
The exclusive pension provided by the Association is a "Defined Contribution Lump Sum Service
Pension,"as defined in Minnesota Statutes§424A.02, Subdivision 4.
Contribution Made
The City collected and remitted $163,880 and $175,552 in State Aid to the Association for 2005
and 2004, respectively.
During 2005 and as of December 31, 2005,the Association held no securities issued by the
City or other related parties.
8. Interfund Receivables, Payables and Transfers
Interfund receivables and payables of the primary government at December 31, 2005 are as
follows:
Interfund Interfund
Receivables Payables
Due From/Due To:
Major Funds:
General Fund $160,680 $ -
Capital Improvement Fund 102,745 -
Nonmajor Governmental Funds:
Special Revenue Funds:
Solid Waste Abatement Fund - 148,758
HRA Reimbursement Fund - 11,922
Capital Project Funds:
Special Assessment Construction Fund - 102,745
$263,425 $263,425
Interfund payables and receivables are representative of lending/borrowing arrangements to
cover deficit cash balances at the end of the fiscal year.
72
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Interfund receivables and payables of the HRA component unit at December 31, 2005 are as
follows:
Interfund Interfund
Receivables Payables
Due From/Due To:
General Fund $3,599,638 $ -
Capital Projects Funds:
Lake Pointe - 1,080,303
Gateway East - 972,653
Gateway West - 1,421,922
57th Avenue Redevelopment - 124,760
$3,599,638 $3,599,638
The above balances are not expected to be eliminated within one year of December 31,
2005.
Interfund Transfers:
Transfer In Transfer Out
Governmental Funds:
Major Funds:
General Fund $1,273,883 $3,551
Grant Management 25,829 -
Special Assessment Debt Service - 250,000
Capital Improvement - 2,088,007
Special Assessment Construction Capital Projects 2,188,007 -
Nonmajor Funds - 488,283
Total governmental funds 3,487,719 2,829,841
Proprietary Funds:
Enterprise:
Liquor - 500,000
Water 16,680 21,220
Sewer 25,008 29,704
Storm Water - 148,642
Total proprietary funds 41,688 699,566
Total $3,529,407 $3,529,407
Interfund transfers allow the City to allocate financial resources to the funds that receive
benefit from services provided by another fund. Most of the City's interfund transfers fall
under that category.
73
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
9. Reserved Fund Balances
The following reservations have been made of various fund balances of the primary government at
December 31, 2005:
General Fund:
Reserved for:
Inventory $54,116
Long-term receivables 27,546
Total General Fund 81,662
Special Revenue Funds:
Reserved for police activity 688,214
Debt Service Funds:
Reserved for long-term receivable 480,123
Reserved for debt service 389,197
Total Debt Service Funds 869,320
Total Governmental Funds $1,639,196
The HRA component unit had reserved fund balances at December 31,2005:
Reserved for:
Debt service $3,000,000
Mortgage receivable 1,141,241
$4,141,241
74
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
10. Designated Fund Balance
The following designations have been made of various fund balances at December 31, 2005:
General Fund:
Working capital $4,020,085
Special Revenue Funds:
Cable TV Fund:
Cable TV operations 951,616
Drug and Gambling Forfeiture Fund:
Drug and gambling enforcement 47,521
F.C.C. Donations:
Fridley community center 86,939
Total Special Revenue Funds 1,086,076
Capital Projects Funds:
Capital Improvements Fund:
Future improvements 5,730,856
Total of designated fund balances $10,837,017
75
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
11. Tax Increment Districts
The HRA is the administering authority for the following Tax Increment Districts:
Fiscal Retained
Year Tax Capacity Values Disparity By
Established District District Name Current Original Captured Adjustments Authority
1979 1 Center City $716,101 $118,515 $597,586 $ - $597,586
1981 2 Moore Lake 519,992 33,732 486,260 - 486,260
1982 3 North Area 1,549,304 90,346 1,458,958 (289,302) 1,169,656
1985 6 Lake Pointe 765,266 83,780 681,486 - 681,486
1986 7 Winfield 60,596 3,582 57,014 - 57,014
1989 9 Onan/Old Central Avenue 437,179 42,646 394,533 - 394,533
1992 11 University/Osborne 62,680 26,478 36,202 - 36,202
1992 12 McGlynn's 83,892 41,254 42,638 - 42,638
1995 13 Satellite Lane Apartments 50.002 2,334 47,668 - 47,668
1995 14 Industrial Equities 72,996 16,381 56,615 - 56,615
1997 16 57th Avenue Replacement 26,354 7,776 18,578 - 18,578
2000 17 Gateway East 46,167 5,042 41,125 - 41,125
1995 HR1/04 Housing Replacement 5,586 543 5,043 - 5,043
1995 HR1/05 Housing Replacement 2,242 270 1,972 - 1,972
1995 HR1/06 Housing Replacement 5,579 686 4,893 - 4,893
1995 HR1/Q2 Housing Replacement 2,182 318 1,864 - 1,864
1995 HR1/Q3 Housing Replacement 1,883 393 1,490 - 1,490
1995 HR1/Q4 Housing Replacement 5,886 781 5,105 - 5,105
1995 HR1/S3 Housing Replacement 2,200 516 1,684 - 1,684
1995 HR1/S4 Housing Replacement 2,273 563 1,710 - 1,710
1995 HR1/S5 Housing Replacement 1,975 375 1,600 - 1,600
1995 HR1/S6 Housing Replacement 1,794 443 1,351 - 1,351
Totals $4,422,129 $476,754 $3,945,375 ($289,302) $3,656,073
12. Commitments and Contingencies
A. 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.
During 1987,the City established the Self Insurance Fund (an Internal Service Fund)to
account for and finance its uninsured risks of loss.
The Self Insurance Fund provides coverage for up to a maximum of$50,000 for each liability
and property claim with an annual aggregate of$100,000 for all claims. The City purchases
insurance through the League of Minnesota Cities Insurance Trust for claims in excess of
coverage provided by the fund and for all other risks of loss.
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 the 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
subject to a $500 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.
76
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
The City continues to carry commercial insurance for all other risks of loss, including
employee health and disability 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.
In 1990, the General Fund contributed $1,000,000 to the Self Insurance Fund in lieu of the
Self Insurance Fund charging losses back to each fund.
There is no recorded liability for unpaid claims because the amount of such claims, if any, is
considered to be immaterial.
As of December 31, 2005, the Self Insurance Fund has accumulated equity in the amount of
$1,611,002 to cover future claims and losses.
B. Litigation
The City attorney has indicated that existing and pending lawsuits, claims and other actions
in which the City is a defendant are either covered by insurance; of an immaterial amount; or,
in the judgment of the City attorney, remotely recoverable by plaintiffs.
C. 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, 2005.
D. Tax Increment Districts
The City's tax increment districts are subject to review by the State of Minnesota Office of the
State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a
liability of the applicable fund. Management has indicated that they are not aware of any
instances of noncompliance which would have a material effect on the financial statements.
77
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
E. Contingent Liability
The HRA entered into various limited tax increment revenue notes with developers whereby
the HRA shall pay the developers the lesser of the scheduled payment or available tax
increment. Whether a payment will occur, and if so, the amount of the payment(s)are
uncertain since all payments are dependent on the HRA receiving tax increments from the
developer's project. As such, this liability has not been recorded in the financial statements.
The HRA has issued various Tax Increment Revenue Notes. These notes are not a general
obligation of the HRA and are payable solely from available tax increments.Accordingly,
these notes are not reflected in the financial statements of the HRA. A schedule of
outstanding notes at December 31, 2005 is as follows:
Original 12/31/2005 Interest Maturity
Note Principal Balance Rate Date
Medtronic $10,000,000 $10,053,163 6.75%o August 1,2025
Linn 175,000 149,500 8.50% February 1, 2012
Banfill 683,156 252,242 8.00% August 1, 2007
F. Construction Commitments
At December 31, 2005, the City had construction project contracts in progress. The
commitments related to the remaining contract balances are summarized as follows:
Remaining
Project Commitment
85th Avenue Trail Project $72,468
Woodside Court Street Improvement 7,865
2005-1 Street Reconstruction 133,596
Locke Park Filter Plant Improvement 5,310
Commons Park 733,372
2006-1 Street Reconstruction 85,906
73 1/2 Avenue Improvement 23,870
Fire Truck 358,676
3MG Water Storage 2,437
Total $1,423,500
G. Commitments -HRA
The HRA has pledged future tax increments to the City of Fridley for the City's general
obligation tax increment debt.
78
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
13. Leases
A. Lease Expense
The City leases space for one of its liquor stores. Total costs for this lease was$103,564 for
the year ended December 31, 2005. The future minimum lease payments for this lease are
as follows:
Year Ending
December 31, Amount
2006 $95,850
2007 95,850
2008 95,850
2009 98,200
2010 109,981
2011 109,981
2012 109,981
2013 109,981
2014 91,650
Total $917,324
B. Lease Revenue
The City receives revenue from agreements for the lease of space above its water towers to
communication companies. The space is used for antennas and other equipment(of the
lessees) necessary to provide radio communications. For accounting purposes,the leases
are considered operating leases. Lease revenue for the year ended December 31, 2005,
totaled $115,285. Terms of each lease are as follows:
Annual
Lease
Adjustment Expiration Renewal
Lessee Factor* Date Options
T-Mobile Greater of 3% or CPI 12/31/06 2 Five Year Renewals
T-Mobile Highway 65 Greater of 3%or CPI 12/31/07 3 Five Year Renewals
Cingular-Garage Greater of 5%or CPI 08/25/08 4 Five Year Renewals
Cingular-Marion Hills Greater of 5%or CPI 06/30/10 4 Five Year Renewals
Sprint- Highway 65 Greater of 5% or CPI 09/30/10 4 Five Year Renewals
Sprint-Well#13 Greater of 5% or CPI 09/30/08 4 Five Year Renewals
Global Signal-Well#13 Greater of 5%or CPI 08/19/10 4 Five Year Renewals
*Amounts for future lease receipts are unavailable because they are based on the
Consumer Price Index.
79
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
14. Conduit Debt Obligation
From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to
private-sector entities for the acquisition and construction of industrial and commercial facilities
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, 2005, there were 28 series of Industrial Revenue Bonds issued. The aggregate
principal amount payable for the six series issued after July 1, 1995 is $19,684,697. The aggregate
principal amount payable for the twenty-two series issued prior to July 1, 1995, could not be
determined; however, their original issue amounts totaled $65.2 million.
15. Deficit Fund Balances
At December 31, 2005, individual funds with a deficit fund balance are as follows:
City:
Special Assessment Funds:
Solid Waste Abatement Fund $40,231
Component unit:
Lake Pointe $325,721
Gateway East $943,733
Gateway West $1,421,922
57th Avenue Redevelopment $122,461
16. Contingent Receivable
In 1999,the HRA entered into an agreement with Medtronic for the sale of land from the HRA to
Medtronic. The original principal amount of the receivable was$5,000,000. Interest is added
quarterly at a rate of 8.25%. Payments on the note receivable are made in an amount equal to
11.11%of tax increment note payments received by Medtronic through 2012, and 22.22% of tax
increment note payments receivable from 2012 through 2026.
80
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
17. Recently Issued Accounting Standards
The Governmental Accounting Standards Boards (GASB) recently approved the following statements
which were not implemented for these financial statements:
Statement No.44 Economic Condition Reporting: The Statistical Section—an amendment to
NCGA Statement 1. The provisions of this Statement are effective for statistical sections
prepared for periods beginning after June 15, 2005.
Statement No.45 Accounting and Financial Reporting by Employers for Post Employment
Benefits Other Than Pension Plans. Implementation is required in three phases based on a
government's total annual revenues in the first fiscal year ending after June 15, 1999. This
Statement is effective for periods beginning after December 15, 2006,for phase 1 governments
(those with total annual revenues of$100 million or more); after December 15, 2007,for phase 2
governments(those with total annual revenues of$10 million or more but less than $100 million);
and after December 15, 2008, for phase 3 governments(those with total annual revenues of less
than $10 million). Early implementation is encouraged.
Statement No.46 Net Assets Restricted by Enabling Legislation—an amendment of GASB
Statement 34. The provisions of this Statement are effective for financial statements for periods
beginning after June 15, 2005.
Statement No. 47 Accounting for Termination Benefits. The provisions of this Statement are
effective for financial statements for periods beginning after June 15, 2005.
The effect these standards may have on future financial statements is not determinable at this time.
81
r
Fs
CITY OF
FRIDLEY
82
REQUIRED SUPPLEMENTARY INFORMATION
83
Exhibit B-1
Page 1 of 4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND
For The Year Ended December 31, 2005
With comparative actual amounts for the year ended December 31, 2004
2005
r
Variance with
Final Budget- 2004
Budgeted Amounts Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Taxes and special assessments:
Current ad valorem taxes $7,673,970 $6,899,956 $6,763,409 (136,547) $5,685,097
Delinquent ad valorem taxes 30,000 30,000 8,266 (21,734) 37,995
Penalties and interest 12,000 12,000 8,929 (3,071) 394
Special assessments 3,100 3,100 608 (2,492) 8,906
Total taxes and special assessments 7,719,070 6,945,056 6,781,212 (163,844) 5,732,392 '
Licenses and permits:
Licenses:
Contractor 101,580 101,580 74,149 (27,431) 76,308
Business 110,300 110,300 94,704 (15,596) 101,467
All other 29,000 29,000 28,670 (330) 32,331
Permits 372,300 372,300 491,253 118,953 392,131
Total licenses and permits 613,180 613,180 688,776 75,596 602,237
Intergovernmental revenue:
Civil defense - - 8,377 '
Federal grants 3,200 5,116 5,387 271 7,949
State maintenance aid 204,000 204,000 196,268 (7,732) 171,674
State credits - 499,014 499,014 - 517,543 l
Local government aid 293,654 293,654 293,654 - 942,038
Other state grants 1,000 1,000 32,070 31,070 3,033
Police and fire pension 382,282 393,914 464,956 71,042 469,885
Other - 8,496 83,828 75,332 8,912
Total intergovernmental revenue 884,136 1,405,194 1,575,177 169,983 2,129,411
Charges for services:
General government 879,890 879,890 879,826 (64) 828,850
Public safety 166,985 171,409 126,904 (44,505) 125,399 '
Public works 12,000 12,000 14,103 2,103 8,021
Community development 47,100 47,100 28,943 (18,157) 20,294
Recreation 304,400 214,700 252,988 38,288 306,582
Total charges for services 1,410,375 1,325,099 1,302,764 (22,335) 1,289,146
Fines and forfeits 180,000 180,000 163,166 (16,834) 173,694
Investment income 150,000 150,000 106,513 (43,487) 88,773
Miscellaneous revenue:
Insurance and other reimbursements 60,700 65,634 99,902 34,268 125,345
Gambling tax 74,000 74,000 74,032 32 84,955
Donations 10,000 21,967 24,477 2,510 89,838
Miscellaneous 11,000 14,200 88,814 74,614 83,095
Total miscellaneous revenue 155,700 175,801 287,225 111,424 383,233 1
Total revenues 11,112,461 10,794,330 10,904,833 110,503 10,398,886
1
84
Exhibit B-1
Page 2 of 4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND
For The Year Ended December 31, 2005
With comparative actual amounts for the year ended December 31,2004
2005
Variance with
Final Budget- 2004
Budgeted Amounts Actual Positive Actual
Original Final Amounts (Negative) Amounts
Expenditures:
General government:
Mayor and council:
Personal services $74,680 $74,980 $74,980 $ - $72,347
Supplies and other charges 42,849 39,019 33,523 5,496 29,099
Total mayor and council 117,529 113,999 108,503 5,496 101,446
Planning commission:
Supplies and other charges 200 200 - 200 1
Other commissions:
Supplies and other charges - 56 56 - 52
City manager:
Personal services 193,788 195,244 195,244 - 186,875
Supplies and other charges 62,490 52,098 52,098 - 51,871
Total City manager 256,278 247,342 247,342 0 238,746
Human resources:
Personal services 147,120 147,120 146,621 499 143,206
Supplies and other charges 25,765 37,296 33,011 4,285 17,705
Total human resources 172,885 184,416 179,632 4,784 160,911
Legal:
Supplies and other charges 347,237 359,647 359,647 - 303,761
Elections:
Personal services - 992 992 - 2,322
Supplies and other charges 1,302 12,916 12,916 - 31,492
Total elections 1,302 13,908 13,908 0 33,814
Accounting:
Personal services 592,867 566,624 564,552 2,072 582,715
Supplies and other charges 86,030 99,453 99,452 1 74,608
Total accounting 678,897 666,077 664,004 2,073 657,323
Assessing:
Personal services 152,163 152,163 149,311 2,852 146,865
Supplies and other charges 10,666 10,666 6,379 4,287 7,538
Total assessing 162,829 162,829 155,690 7,139 154,403
MIS:
Personal services 152,975 155,483 155,483 - 147,159
Supplies and other charges 98,974 85,303 72,550 12,753 60,362
Total MIS 251,949 240,786 228,033 12,753 207,521
City clerk/records:
Personal services 109,917 113,589 113,589 - 108,324
Supplies and other charges 21,072 28,563 28,563 - 22,855
Total City clerk/records 130,989 142,152 142,152 0 131,179
Nondepartmental:
Personal services 40,000 6,472 6,471 1 32,049
Supplies and other charges 53,783 50,084 50,084 - 15,613
Total nondepartmental 93,783 56,556 56,555 1 47,662
85
Exhibit B-1
Page 3 of 4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND
For The Year Ended December 31, 2005
With comparative actual amounts for the year ended December 31,2004
2005
Variance with
Final Budget- 2004
Budgeted Amounts Actual Positive Actual
Original Final Amounts (Negative) Amounts
Expenditures: (continued)
General government: (continued)
Municipal center:
Personal services $32,267 $30,789 $30,789 $ - $31,365
Supplies and other charges 204,380 236,457 236,457 - 210,572
Total municipal center 236,647 267,246 267,246 0 241,937
Total general government 2,450,525 2,455,214 2,422,768 32,446 2,278,756
Expenditures:
Public safety:
Police:
Personal services 3,664,752 3,648,888 3,648,888 - 3,473,578
Supplies and other charges 372,725 428,351 428,351 - 393,207
Total police 4,037,477 4,077,239 4,077,239 0 3,866,785
Fire:
Personal services 781,285 863,669 863,669 - 871,591
Supplies and other charges 171,016 140,002 140,002 - 287,404
Total fire 952,301 1,003,671 1,003,671 0 1,158,995
Rental inspections:
Personal services 106,079 104,897 104,897 - 111,051
Supplies and other charges 15,582 5,763 5,763 - 9,117
Total rental inspections 121,661 110,660 110,660 0 120,168
Civil defense:
Supplies and other charges 15,517 15,517 12,981 2,536 10,581
Total public safety 5,126,956 5,207,087 5,204,551 2,536 5,156,529
Public works:
Engineering:
Personal services 414,457 395,157 395,156 1 391,410
Supplies and other charges 72,290 68,782 68,782 - 66,137
Total engineering 486,747 463,939 463,938 1 457,547
Public works and parks:
Personal services 1,417,421 1,463,477 1,463,477 - 1,358,898
Supplies and other charges 852,215 1,013,455 1,013,454 1 791,871 ,
Total public works and parks 2,269,636 2,476,932 2,476,931 1 2,150,769
Total public works 2,756,383 2,940,871 2,940,869 2 2,608,316
Community development:
Building inspection:
Personal services 199,994 208,538 208,538 - 190,367
Supplies and other charges 89,880 111,324 111,324_ - 104,424
Total building inspection 289,874 319,862 319,862 0 294,791
86
Exhibit B-1
Page 4 of 4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND
For The Year Ended December 31, 2005
With comparative actual amounts for the year ended December 31,2004
2005
Variance with
Final Budget- 2004
Budgeted Amounts Actual Positive Actual
Original Final Amounts (Negative) Amounts
Expenditures: (continued)
Community development: (continued)
Planning:
Personal services $308,973 $298,200 $298,200 $ - $267,996
Supplies and other charges 46,134 53,111 53,111 - 30,606
Total planning 355,107 351,311 351,311 0 298,602
Total community development 644,981 671,173 671,173 0 593,393
Expenditures:
Recreation and naturalist:
Recreation:
Personal services 541,137 496,429 496,326 103 465,274
Supplies and other charges 260,988 241,113 240,768 345 224,904
Total recreation 802,125 737,542 737,094 448 690,178
Naturalist:
Personal services 216,097 - - - 218,317
Supplies and other charges 54,377 - - - 52,228
Total naturalist 270,474 0 0 0 270,545
Total recreation and naturalist 1,072,599 737,542 737,094 448 960,723
Capital outlay:
Public safety 99,900 96,169 96,169 - 117,752
Public works 160,000 165,904 163,521 2,383 105,363
Total capital outlay 259,900 262,073 259,690 2,383 223,115
Contingency:
Current:
Supplies and other charges 100,000 907 907 - -
Total expenditures 12,411,344 12,274,867 12,237,052 37,815 11,820,832
Excess (deficiency)of revenues over
(under)expenditures (1,298,883) (1,480,537) (1,332,219) 148,318 (1,421,946)
Other financing sources(uses):
Proceeds from sale of fixed assets 25,000 25,000 - (25,000) -
Transfers in 1,273,883 1,273,883 1,273,883 - 1,161,293
Transfers out - (6,750) (3,551) 3,199 (3,388)
Total other financing sources(uses) 1,298,883 1,292,133 1,270,332 (21,801) 1,157,905
Net change in fund balance $0 ($188,404) (61,887) $126,517 (264,041)
Fund balance-January 1 4,163,834 4,427,875
Fund balance-December 31 $4,101,947 $4,163,834
87
Exhibit B-2
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GRANT MANAGEMENT FUND
For The Year Ended December 31, 2005
With comparative actual amounts for the year ended December 31, 2004
2005
Variance with
Final Budget- 2004
Budgeted Amounts Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Intergovernmental:
Federal grants $102,704 $102,704 $143,446 $40,742 $169,308
State grants - 335,187 162,332 (172,855) 102,008
Other - - 91,765 91,765 29,225
Total intergovernmental 102,704 437,891 397,543 (40,348) 300,541
Miscellaneous revenue:
Donations - - - - 427
Total revenues 102,704 437,891 397,543 (40,348) 300,968
Expenditures:
Current:
General government:
Personal services 78,089 84,839 80,361 4,478 109,697
Supplies and other charges 7,824 343,011 343,011 - 203,268
Total general government 85,913 427,850 423,372 4,478 312,965
Total expenditures 85,913 427,850 423,372 4,478 312,965
Excess (deficiency)of revenues over
(under)expenditures 16,791 10,041 (25,829) (35,870) (11,997)
Other financing sources(uses):
Transfers in - 29,028 25,829 (3,199) 11,997 1
Net change in fund balance $16,791 $39,069 0 ($39,069) 0
Fund balance-January 1 - -
Fund balance-December 31 $0 $0
88
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2005
Note A LEGAL COMPLIANCE—BUDGETS
The General Fund and Grant Management Fund budgets are 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 expenditure category level.
89
� yak
‘44.
CITY OF
FRIDLEY
90
COMBINING AND INDIVIDUAL FUND STATEMENTS AND
SCHEDULES
91
„,„
CITY OF
FRIDLEY
92
NONMAJOR GOVERNMENTAL FUNDS
93
iiellfii3O
$8°4* ,
N.
a"
CITY OF
FRIDLEY
94
SPECIAL REVENUE FUNDS
A Special Revenue Fund accounts for revenues derived from specific taxes or other earmarked
revenue sources. They are usually required by statute or local ordinance and/or resolution to finance
particular functions, activities or governments.
95
Exhibit C-1
CITY OF FRIDLEY, MINNESOTA
BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2005
With comparative totals for December 31, 2004
Nonmajor Special Revenue
2005 2004
Assets
Cash and investments $1,785,565 $1,698,554
Receivables:
Accounts 145,060 64,547
Taxes 6,332 -
Due from component unit 11,940 5,996
Due from other governments 60,721 61,029
Total assets $2,009,618 $1,830,126
Liabilities and Fund Balance
Liabilities:
Accounts payable $51,576 $32,705
Deposits payable - 10,025
Salaries payable 6,074 2,377
Deferred revenue 3,996 -
Due to other funds 160,680 88,002
Due to other governments 83 44
Total liabilities 222,409 133,153
Fund balance (deficit):
Reserved 688,214 1,155,225
Unreserved:
Designated 1,086,076 554,343
Undesignated 12,919 (12,595)
Total fund balance (deficit) 1,787,209 1,696,973
Total liabilities and fund balance $2,009,618 $1,830,126
96
Exhibit C-2
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2005
With comparative total for the year ended December 31, 2004
Nonmajor Special Revenue
2005 2004
Revenues:
Licenses and permits $177,072 $183,345
Intergovernmental revenue 105,799 88,649
Taxes 270,309 -
Charges for services 303,390 228,420
Fines and forfeits 938 3,184
Investment income 32,820 30,262
Miscellaneous 542,821 1,740
Total revenues 1,433,149 535,600
Expenditures:
Current:
General government 854,630 532,246
Excess (deficiency)of revenues over
(under)expenditures 578,519 3,354
Other financing sources(uses):
Transfers out (488,283) (478,393)
Net change in fund balance 90,236 (475,039)
Fund balance-January 1 1,696,973 2,172,012
Fund balance- December 31 $1,787,209 $1,696,973
97
�� ry
y � Y
CITY OF
FRIDLEY
98
NONMAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues derived from specific taxes or other
earmarked revenue sources. They are usually required by statute, charter provision or local ordinance
to finance particular governmental functions or activities.
Cable TV Fund -This fund receives revenues from the issuance of a franchise agreement with the
cable TV provider. These revenues are used for the operation and maintenance of a government
access channel.
Solid Waste Abatement Fund -This fund receives grants, recycling fees and yard waste fees. These
revenues finance the City's curbside recycling pickup and operation of the yard waste transfer site.
HRA Reimbursement Fund -This fund receives revenues from the Housing and Redevelopment
Authority. These revenues are used to reimburse the City for professional services provided by City
staff for HRA related activities.
Drug and Gambling Forfeiture Fund -This fund receives forfeited property in connection with illegal
gambling or drug activity. Pursuant to Minnesota Statutes, the proceeds are disbursed between the
investigating agency and the prosecuting agency.
F.C.C. Donations Fund -This fund is used to account for donations received and used in improving and
furnishing the Fridley Community Center.
Police Activity Fund -This fund is used to account for the residual assets refunded to the City from the
Public Employees Retirement Association's police consolidation account.
Springbrook Nature Center Fund -This fund was established in 2005 after a$275,000 referendum
supporting the Springbrook Nature Center was approved by the voters in November of 2004. The
revenues from the annual levy are used for the on-going operation of the nature center and the capital
improvement projects required in the park.
99
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2005
With comparative totals for December 31, 2004
Cable Solid Waste
Assets TV Abatement
Cash and investments $901,894 $ -
Receivables:
Accounts 52,534 92,457
Taxes - -
Due from component unit - -
Due from other governments - 60,721
Total assets $954,428 $153,178
Liabilities and Fund Balance
Liabilities:
Accounts payable $1,725 $43,589
Deposits payable - -
Salaries payable 1,087 1,062
Due to other funds - 148,758
Due to other governments - -
Deferred revenue - -
Total liabilities 2,812 193,409
Fund balance:
Reserved - -
Unreserved:
Designated for special revenue programs 951,616 -
Undesignated - (40,231)
Total fund balance 951,616 (40,231)
Total liabilities and fund balance $954,428 $153,178
100
Exhibit C-3
Totals
Drug and Nonmajor
HRA Gambling F.C.C. Police Springbrook Special Revenue Funds
Reimbursement Forfeiture Donations Activity Nature Center 2005 2004
$ - $47,604 $86,939 $688,214 $60,914 $1,785,565 $1,698,554
- - - - 69 145,060 64,547
- - - 6,332 6,332 -
11,940 - - - - 11,940 5,996
- 60,721 61,029
$11,940 $47,604 $86,939 $688,214 $67,315 $2,009,618 $1,830,126
$18 $ - $ - $ - $6,244 $51,576 $32,705
- - - - - - 10,025
- - - - 3,925 6,074 2,377
11,922 - - - - 160,680 88,002
- 83 - - - 83 44
- - - - 3,996 3,996 -
11,940 83 0 0 14,165 222,409 133,153
- - - 688,214 - 688,214 1,155,225
- 47,521 86,939 - - 1,086,076 554,343
- - - - 53,150 12,919 (12,595)
0 47,521 86,939 688,214 53,150 1,787,209 1,696,973
$11,940 $47,604 $86,939 $688,214 $67,315 $2,009,618 $1,830,126
101
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2005
With comparative totals for the year ended December 31, 2004
Cable Solid Waste
TV Abatement
Revenues:
Licenses and permits $177,072 $ -
Intergovernmental revenue - 60,721
Taxes - -
Charges for services 665 231,877
Fines and forfeits - -
Investment income 9,744 -
Miscellaneous 450,000 70,463
Total revenues 637,481 363,061
Expenditures:
Current:
General government 127,464 390,697
Excess (deficiency)of revenues
over(under)expenditures 510,017 (27,636)
Other financing sources(uses):
Transfers out - -
Net change in fund balance 510,017 (27,636)
Fund balance-January 1 441,599 (12,595)
Fund balance- December 31 $951,616 ($40,231)
102
Exhibit C-4
Totals
Drug and Nonmajor
HRA Gambling F.C.C. Police Springbrook Special Revenue Funds
Reimbursement Forfeiture Donations Activity Nature Center 2005 2004
$ - $ - $ - $ - $ - $177,072 $183,345
26,531 - - - 18,547 105,799 88,649
- - - - 270,309 270,309 -
- - - - 70,848 303,390 228,420
- 938 - - - 938 3,184
- - 1,804 21,272 - 32,820 30,262
- 20,426 - - 1,932 542,821 1,740
26,531 21,364 1,804 21,272 361,636 1,433,149 535,600
26,531 1,452 - - 308,486 854,630 532,246
0 19,912 1,804 21,272 53,150 578,519 3,354
- - - (488,283) - (488,283) (478,393)
- 19,912 1,804 (467,011) 53,150 90,236 (475,039)
- 27,609 85,135 1,155,225 - 1,696,973 2,172,012
$0 $47,521 $86,939 $688,214 $53,150 $1,787,209 $1,696,973
103
Exhibit D-1
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -CABLE TV FUND
COMPARATIVE BALANCE SHEET
December 31, 2005 and 2004
Assets 2005 2004
Cash and investments $901,894 $411,867
Accounts receivable 52,534 44,234
Total assets $954,428 $456,101
Liabilities and Fund Balance
Liabilities:
Accounts payable $1,725 $3,461
Deposits payable - 10,025
Salaries payable 1,087 1,016
Total liabilities 2,812 14,502
Fund balance:
Unreserved:
Designated for special revenue programs 951,616 441,599
Total liabilities and fund balance $954,428 $456,101
104
Exhibit D-2
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -CABLE TV FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2005
With comparative actual amounts for the year ended December 31, 2004
2005 2004
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Licenses -franchise fee $175,000 $177,265 $177,072 $183,345
Charges for services 1,000 1,000 665 699
Investment income 6,000 6,000 9,744 6,256
Miscellaneous - - 450,000 -
Total revenues 182,000 184,265 637,481 190,300
Expenditures:
Current:
General government:
Personal services 109,299 109,299 108,816 104,878
Supplies and other charges 16,383 18,648 18,648 44,176
Total expenditures 125,682 127,947 127,464 149,054
Net change in fund balance $56,318 $56,318 510,017 41,246
Fund balance-January 1 441,599 400,353
Fund balance- December 31 $951,616 $441,599
I
105
Exhibit D-3
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -SOLID WASTE ABATEMENT FUND
COMPARATIVE BALANCE SHEET
December 31, 2005 and 2004
1
Assets 2005 2004
Accounts receivable $92,457 $20,313
Due from other governments 60,721 61,029
Total assets $153,178 $81,342
Liabilities and Fund Balance
Liabilities:
Accounts payable $43,589 $10,458
Salaries payable 1,061 1,361
Due to other funds 148,759 82,074
Due to other governments - 44
Total liabilities 193,409 93,937
Fund balance:
Unreserved:
Undesignated (40,231) (12,595)
Total liabilities and fund balance $153,178 $81,342
106
Exhibit D-4
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -SOLID WASTE ABATEMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31,2005
With comparative actual amounts for the year ended December 31, 2004
2005 2004
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Intergovernmental revenue:
State $55,239 $55,239 $60,721 $68,714
Charges for services 227,251 312,064 231,877 227,721
Miscellaneous 800 800 70,463 1,440
Total revenues 283,290 368,103 363,061 297,875
Expenditures:
Current:
General government:
Personal services 64,075 64,075 54,566 63,576
Supplies and other charges 251,319 336,132 336,131 266,740
Total expenditures 315,394 400,207 390,697 330,316
Net change in fund balance ($32,104) ($32,104) (27,636) (32,441)
Fund balance(deficit)-January 1 (12,595) 19,846
Fund balance(deficit)- December 31 ($40,231) ($12,595)
107
Exhibit D-5
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -HRA REIMBURSEMENT FUND
COMPARATIVE BALANCE SHEET
December 31, 2005 and 2004
Assets 2005 2004
Due from component unit $11,940 $5,996
Total assets $11,940 $5,996
Liabilities and Fund Balance
Liabilities:
Accounts payable $18 $68
Due to other funds 11,922 5,928
Total liabilities 11,940 5,996
Fund balance - -
Total liabilities and fund balance $11,940 $5,996
108
Exhibit D-6
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -HRA REIMBURSEMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For The Year Ended December 31, 2005
With comparative actual amounts for the year ended December 31, 2004
2005 2004
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Intergovernmental revenue:
Housing and Redevelopment Authority $ - $26,531 $26,531 $19,935
Expenditures:
Current:
General government:
Supplies and other charges - 26,531 26,531 19,935
Net change in fund balance $0 $0 0 0
Fund balance-January 1 - -
Fund balance-December 31 $0 $0
109
Exhibit D-7
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -DRUG AND GAMBLING FORFEITURE FUND
COMPARATIVE BALANCE SHEET
December 31, 2005 and 2004
Assets 2005 2004
Cash and investments $47,604 $46,327
Due from other governments - -
Total assets $47,604 $46,327
Liabilities and Fund Balance
Liabilities:
Accounts payable $ - $18,718
Due to other governments 83 -
Total liabilities 83 18,718
Fund balance:
Unreserved:
Designated for special revenue programs 47,521 27,609
Total liabilities and fund balance $47,604 $46,327
110
Exhibit D-8
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -DRUG AND GAMBLING FORFEITURE FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2005
With comparative actual amounts for the year ended December 31, 2004
2005 2004
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Fines and forfeits $ - $21,363 $938 $3,184
Miscellaneous - - 20,426 300
Total revenues 0 21,363 21,364 3,484
Expenditures:
Current:
General government:
Supplies and other charges - 1,452 1,452 27,649
Net change in fund balance $0 $19,911 19,912 (24,165)
Fund balance-January 1 27,609 51,774
Fund balance- December 31 $47,521 $27,609
111
Exhibit D-9
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -F.C.C. DONATIONS FUND
COMPARATIVE BALANCE SHEET
December 31, 2005 and 2004
Assets 2005 2004
Cash and investments $86,939 $85,135
Total assets $86,939 $85,135
Liabilities and Fund Balance
Liabilities $ - $ -
Fund balance:
Unreserved:
Designated for special revenue programs 86,939 85,135
Total liabilities and fund balance $86,939 $85,135
112
Exhibit D-10
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - F.C.C. DONATIONS FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For The Year Ended December 31, 2005
With comparative actual amounts for the year ended December 31, 2004
2005 2004
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Investment income $ - $ - $1,804 $1,405
Expenditures:
Current:
General government:
Supplies and other charges - - - 5,292
Net change in fund balance $0 $0 1,804 (3,887)
Fund balance-January 1 85,135 89,022
Fund balance - December 31 $86,939 $85,135
113
Exhibit D-11
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -POLICE ACTIVITY FUND
COMPARATIVE BALANCE SHEET
December 31, 2005 and 2004
Assets 2005 2004
Cash and investments $688,214 $1,155,225
Total assets $688,214 $1,155,225
Liabilities and Fund Balance
Liabilities $ - $ -
Fund balance:
Reserved for police activity 688,214 1,155,225
Total liabilities and fund balance $688,214 $1,155,225
114
Exhibit D-12
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -POLICE ACTIVITY FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For The Year Ended December 31, 2005
With comparative actual amounts for the year ended December 31, 2004
2005 2004
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Investment income $23,000 $23,000 $21,272 $22,601
Expenditures - - - -
Excess (deficiency)of revenues over(under)expenditures 23,000 23,000 21,272 22,601
Other financing sources (uses):
Transfers out:
General Fund (488,283) (488,283) (488,283) (478,393)
Net change in fund balance ($465,283) ($465,283) (467,011) (455,792)
Fund balance-January 1 1,155,225 1,611,017
Fund balance- December 31 $688,214 $1,155,225
115
Exhibit D-13
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -SPRINGBROOK NATURE CENTER FUND
COMPARATIVE BALANCE SHEET
December 31, 2005
Assets 2005
Cash and investments $60,914
Receivables:
Accounts 69
Taxes 6,332
Total assets $67,315
Liabilities and Fund Balance
Liabilities:
Accounts payable $6,244
Salaries payable 3,925
Deferred Revenue 3,996
Total liabilities $14,165
Fund balance:
Unreserved:
Undesignated 53,150
Total liabilities and fund balance $67,315
116
Exhibit D-14
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -SPRINGBROOK NATURE CENTER FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2005
2005
Budgeted Amounts Actual
Original Final Amounts
Revenues:
Intergovernmental revenue $ - $18,547 $18,547
Taxes - 256,453 270,309
Charges for service - 58,500 70,848
Miscellaneous - 1,780 1,932
Total revenues 0 335,280 361,636
Expenditures
Current:
General government:
Personal services - - 240,626
Supplies and other charges - - 67,860
Total expenditures 0 0 308,486
Net change in fund balance $0 $335,280 53,150
Fund balance-January 1 -
Fund balance- December 31 $53,150
117
Exhibit E-1
CITY OF FRIDLEY, MINNESOTA
CAPITAL PROJECT FUND -CAPITAL IMPROVEMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For The Year Ended December 31, 2005
With comparative actual amounts for the year ended December 31, 2004
2005 2004
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Taxes $378,879 $353,326 $346,468 $86,145
Special assessments - - 984 1,275
Intergovernmental revenue:
State 875,000 1,230,553 742,745 688,881
Investment income 139,129 139,129 145,432 109,774
Miscellaneous 10,000 10,000 45,286 25,697
Total revenues 1,403,008 1,733,008 1,280,915 911,772
Expenditures:
Current:
General government:
Supplies and other charges 3,000 170,165 170,164 2,225
Capital outlay 1,087,000 1,027,000 499,767 14,250
Total expenditures 1,090,000 1,197,165 669,931 16,475
Excess (deficiency)of revenues over(under)expenditures 313,008 535,843 610,984 895,297
Other financing sources (uses):
Transfers out (1,920,000) (2,250,000) (2,088,007) (469,710)
Net change in fund balance ($1,606,992) ($1,714,157) (1,477,023) 425,587
Fund balance -January 1 7,207,879 6,782,292
Fund balance- December 31 $5,730,856 $7,207,879
118
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for goods and services that are provided on a
cost reimbursement or fee basis to departments or agencies within the City. These funds
are essential for segregating costs for determining the total cost of providing a service
and for assuring that the goods and services provided are properly utilized. These funds
are accounted for on a capital maintenance measurement focus and use the accrual
basis of accounting.
Employee Benefits Fund—This fund is used to account for the expenses associated with
providing fringe benefits for employees.
Self-Insurance Fund—This fund is used to account for all revenues and expenses
associated with the$50,000 deductible in the City's general liability policy.
Information Systems Fund—This fund is used to account for all revenues and expenses
associated with maintaining and upgrading the City's computerized information systems.
119
Exhibit F-1
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF NET ASSETS i
INTERNAL SERVICE FUNDS 1
December 31, 2005
With comparative totals for December 31, 2004
Employee Self Information Totals
Benefits Insurance Systems 2005 2004
Assets:
Current assets:
Cash and investments $922,145 $1,665,999 $699,332 $3,287,476 $3,658,283
Due from component unit 107 - - 107 103
Total current assets 922,252 1,665,999 699,332 3,287,583 3,658,386
Capital assets, at cost:
Machinery and equipment - - 1,472,977 1,472,977 1,331,455
Less: accumulated depreciation - - (1,051,286) (1,051,286) (941,647)
Net capital assets 0 0 421,691 421,691 389,808
Total assets 922,252 1,665,999 1,121,023 3,709,274 4,048,194
Liabilities:
Current liabilities:
Accounts payable - 54,997 3,301 58,298 40,314
Due to other governments - - 322 322 - r
Payroll deductions payable 78,773 - - 78,773 74,300
Compensated absences payable-
current portion 641,227 - - 641,227 613,417
Total current liabilities 720,000 54,997 3,623 778,620 728,031
Noncurrent liabilities:
Compensated absences payable 102,978 - - 102,978 172,368
Total liabilities 822,978 54,997 3,623 881,598 900,399
Net assets:
Invested in capital assets, net
of related debt - - 421,691 421,691 389,808 ,
Unrestricted 99,274 1,611,002 695,709 2,405,985 2,757,987
Total net assets $99,274 $1,611,002 $1,117,400 $2,827,676 $3,147,795
120
Exhibit F-2
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS
INTERNAL SERVICE FUNDS
For The Year Ended December 31, 2005
With comparative totals for the year ended December 31, 2004
Employee Self Information Totals
Benefits Insurance Systems 2005 2004
Operating revenues:
Charges for services $ - $ - $151,388 $151,388 $152,067
Operating expenses:
Personal services 2,383 55,413 - 57,796 7,518
Supplies and other charges 3,390 291,678 21,523 316,591 105,379
Depreciation - - 171,377 171,377 160,285
Total operating expenses 5,773 347,091 192,900 545,764 273,182
Operating income (loss) (5,773) (347,091) (41,512) (394,376) (121,115)
Nonoperating revenues:
Investment income 19,935 38,145 15,743 73,823 59,183
Gain (loss)on disposal of capital assets - - 434 434 680
Total nonoperating revenues 19,935 38,145 16,177 74,257 59,863
Change in net assets 14,162 (308,946) (25,335) (320,119) (61,252)
Net assets-January 1 85,112 1,919,948 1,142,735 3,147,795 3,209,047
Net assets- December 31 $99,274 $1,611,002 $1,117,400 $2,827,676 $3,147,795
121
Exhibit F-9
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND -SELF INSURANCE FUND
COMPARATIVE STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2005
With comparative amounts for the year ended December 31,2004
2005 2004
Cash flows from operating activities:
Payments to employees ($55,413) $
Payment to suppliers (241,806) (85,547)
Net cash flows from operating activities (297,219) (85,547)
Cash flows from investing activities:
Investment income 38,145 31,349
Net increase (decrease)in cash and cash equivalents (259,074) (54,198)
Cash and cash equivalents-January 1 1,925,073 1,979,271
Cash and cash equivalents- December 31 $1,665,999 $1,925,073 I
Reconciliation of operating income (loss)to net cash
provided (used)by operating activities:
Operating income (loss) ($347,091) ($90,094)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Changes in assets and liabilities:
increase (decrease)in payables 49,872 4,547
Total adjustments 49,872 4,547
Net cash provided (used)by operating activities ($297,219) ($85,547)
I
128
Exhibit F-10
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND -INFORMATION SYSTEMS FUND
COMPARATIVE STATEMENT OF NET ASSETS
December 31, 2005
With comparative amounts for December 31, 2004
2005 2004
Assets:
Current assets:
Cash and investments $699,332 $788,116
Capital assets, at cost:
Property and equipment 1,472,977 1,331,455
Less: accumulated depreciation (1,051,286) (941,647)
Net capital assets 421,691 389,808
Total assets 1,121,023 1,177,924
mei
Liabilities:
Current liabilities:
Accounts payable 3,301 35,189
Due to other governments 322 -
Total liabilities 3,623 35,189
Net assets:
Invested in capital assets, net of related debt 421,691 389,808
Unrestricted 695,709 752,927
Total net assets $1,117,400 $1,142,735
129
Exhibit F-11
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND -INFORMATION SYSTEMS FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS
For The Year Ended December 31, 2005
With comparative amounts for the year ended December 31, 2004
2005 2004
Operating revenues:
Charges for services $151,388 $152,067
Operating expenses:
Supplies and other charges 21,523 12,830
Depreciation 171,377 160,285
Total operating expenses 192,900 173,115
Operating income(loss) (41,512) (21,048)
Nonoperating revenues:
Investment income 15,743 12,114
Gain (loss)on disposal of fixed assets 434 680
Total nonoperating revenues 16,177 12,794
Change in net assets (25,335) (8,254)
Net assets-January 1 1,142,735 1,150,989
Net assets- December 31 $1,117,400 $1,142,735
130
Exhibit F-12
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND -INFORMATION SYSTEMS FUND
COMPARATIVE STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2005
With comparative amounts for the year ended December 31, 2004
2005 2004
Cash flows from operating activities:
Receipts from interfund services provided $151,388 $152,067
Payment to suppliers (53,088) (12,843)
Net cash flows from operating activities 98,300 139,224
Cash flows from capital and related
financing activities:
Acquisition of capital assets (203,261) (128,181)
Proceeds from sale of capital assets - 434 29,822
Net cash flows from capital
and relatd financing activities (202,827) (98,359)
Cash flows from investing activities:
Investment income 15,743 12,114
Net increase (decrease)in cash and cash equivalents (88,784) 52,979
Cash and cash equivalents -January 1 788,116 735,137
Cash and cash equivalents- December 31 $699,332 $788,116
Reconciliation of operating income(loss)to net cash
provided (used) by operating activities:
Operating income (loss) _ ($41,512) ($21,048)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation 171,377 160,285
Changes in assets and liabilities:
Increase (decrease)in payables (31,565) (13)
Total adjustments 139,812 160,272
Net cash provided by operating activities $98,300 $139,224
131
aY
■
Ilk
II
t ,
CITY OF
FRIDLEY
__
132
HOUSING AND REDEVELOPMENT AUTHORITY
COMPONENT UNIT
133
CITY OF FRIDLEY, MINNESOTA
BALANCE SHEET-GOVERNMENTAL FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
December 31, 2005
With comparative totals for December 31,2004
North Area/
Revolving Univ. Ind.
General Loan Park
Assets
Cash and investments $5,809,538 $3,147,684 $1,455,649
Cash with escrow agent - - 146,324
Receivables:
Accounts 869 - -
Interest 20,076 - -
Taxes:
Unremitted 2,593 - 8,510
Delinquent 4,787 - 39,482
Mortgage:
Deferred - 1,049,331 49,072
Allowance for uncollectible accounts - (20,987) -
Due from primary government - - -
Due from other funds 3,599,638 - -
Land held for resale - - 192,000
Total assets $9,437,501 $4,176,028 $1,891,037
�,I
Liabilities and Fund Balance
Liabilities:
Accounts payable $22,626 $ - $ -
Due to primary government 53,055 - 330
Due to other funds - - -
Deferred revenue 4,788 - 231,482
Loan payable to primary government - 480,123 -
Total liabilities 80,469 480,123 231,812
Fund balance:
Reserved for debt service 3,000,000 - -
Reserved for mortgage receivable - 1,049,331 49,072
Unreserved, undesignated 6,357,032 2,646,574 1,610,153
Total fund balance 9,357,032 3,695,905 1,659,225
Total liabilities and fund balance $9,437,501 $4,176,028 $1,891,037 1
134
Exhibit G-1
Other Totals
Lake Gateway Gateway Governmental Governmental Funds
Pointe East West Funds 2005 2004
$543,472 $28,920 $ - $4,754,354 $15,739,617 $14,832,443
- - 146,324 142,929
442,440 - - - 443,309 443,309
- - - - 20,076 20,006
1,700 - - 12,476 25,279 100,222
3,909 - - 22,299 70,477 67,745
- - - 42,838 1,141,241 1,001,747
- - - (434) (21,421) (29,600)
- - - - - 12,478
- - - - 3,599,638 3,074,382
50,000 - 700,000 180,000 1,122,000 1,055,000
$1,041,521 $28,920 $700,000 $5,011,533 $22,286,540 $20,720,661
$233,030 $ - $4,407 $260,063 $268,814
- 1,501 54,886 61,272
1,080,303 972,653 1,421,922 124,760 3,599,638 3,074,382
53,909 - 700,000 202,299 1,192,478 1,122,745
- - - - 480,123 541,244
1,367,242 972,653 2,121,922 332,967 5,587,188 5,068,457
- - - - 3,000,000 3,281,746
- - 42,838 1,141,241 1,001,747
(325,721) (943,733) (1,421,922) 4,635,728 12,558,111 11,368,711
(325,721) (943,733) (1,421,922) 4,678,566 16,699,352 15,652,204
$1,041,521 $28,920 $700,000 $5,011,533 $22,286,540 $20,720,661
135
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
For The Year Ended December 31, 2005
With comparative totals for the year ended December 31, 2004
North Area/
Revolving Univ. Ind.
General Loan Park
Revenues:
Tax increment $ - $ - $1,029,350
Property taxes 294,364 - -
Investment income 148,883 75,402 44,115
Intergovernmental revenue 22,218 - -
Mortgage interest earnings 4,374 43,180 -
Rental 9,600 - -
Sale of real estate - - -
Miscellaneous - -
Receipt from primary government - - -
Total revenues 479,439 118,582 1,073,465
Expenditures:
Personal services 79,984 - -
Supplies and other charges 276,476 19,743 2,414
Capital outlay - - -
Developer assistance - - 89,316
Interest expense - 26,308 -
Payment to primary government - 1,597,356
Total expenditures 356,460 46,051 1,689,086
Excess (deficiency)of revenues over
expenditures 122,979 72,531 (615,621)
Other financing sources(uses):
Transfers in 15,000 - -
Transfers out (15,000) (20,000) -
Total other financing sources (uses) 0 (20,000) 0
Net change in fund balance 122,979 52,531 (615,621)
Fund balance-January 1 9,234,053 3,643,374 2,274,846
Fund balance- December 31 $9,357,032 $3,695,905 $1,659,225
136
Exhibit G-2
Other Totals
Lake Gateway Gateway Governmental Governmental Funds
Pointe East West Funds 2005 2004
$634,997 $35,607 $ - $1,524,251 $3,224,205 $3,078,426
- - 294,364 262,092
5,202 341 - 96,764 370,707 185,347
- 7,848 - 37,567 67,633 66,442
- - - 288 47,842 44,899
- - - - 9,600 9,600
- - - - - 46,627
- - - 29,728 29,728 11,420
- - 8,441 - 8,441 28,355
640,199 43,796 8,441 1,688,598 4,052,520 3,733,208
- - - 79,984 92,760
5,128 1,200 152,188 36,939 494,088 342,887
- - 480,229 - 480,229 334,684
- - 136,590 225,906 729,825
- - - - 26,308 29,252
- - 101,501 1,698,857 1,679,614
5,128 1,200 632,417 275,030 3,005,372 3,209,022
635,071 42,596 (623,976) 1,413,568 1,047,148 524,186
- - - 20,000 35,000 103,486
- - - (35,000) (103,486)
0 0 0 20,000 0 0
635,071 42,596 (623,976) 1,433,568 1,047,148 524,186
(960,792) (986,329) (797,946) 3,244,998 15,652,204 15,128,018
($325,721) ($943,733) ($1,421,922) $4,678,566 $16,699,352 $15,652,204
137
Exhibit G-3
CITY OF FRIDLEY, MINNESOTA
COMBINING BALANCE SHEET-HOUSING AND REDEVELOPMENT AUTHORITY
NONMAJOR GOVERMENTAL FUNDS
December 31, 2005
With comparative totals for December 31, 2004
Special Totals
Revenue/ Nonmajor
Housing Capital Governmental Funds ■
Programs Projects 2005 2004
Assets
Cash and investments $15,692 $4,738,662 $4,754,354 $3,310,598
Receivables:
Taxes:
Unremitted - 12,476 12,476 7,631
Delinquent - 22,299 22,299 13,405
Mortgage:
Deferred 21,679 21,159 42,838 59,992
Allowance for uncollectible accounts (434) - (434) (600)
Land held for resale - 180,000 180,000 180,000
Total assets $36,937 $4,974,596 $5,011,533 $3,571,026
Liabilities and Fund Balance
Liabilities:
Accounts payable $4,407 $ - $4,407 $992
Due to primary government - 1,501 1,501 6,871
Due to other funds - 124,760 124,760 124,760
Deferred revenue - 202,299 202,299 193,405
Total liabilities 4,407 328,560 332,967 326,028
Fund balance:
Reserved for mortgage receivable 21,679 21,159 42,838 59,992
Unreserved, undesignated 10,851 4,624,877 4,635,728 3,185,006
Total fund balance 32,530 4,646,036 4,678,566 3,244,998
Total liabilities and fund balance $36,937 $4,974,596 $5,011,533 $3,571,026
138
Exhibit G-4
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -HOUSING AND REDEVELOPMENT AUTHORITY
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2005
With comparative totals for the year ended December 31, 2004
Special Totals
Revenue/ Nonmajor
Housing Capital Governmental Funds
Programs Projects 2005 2004
Revenues:
Tax increment $ - $1,524,251 $1,524,251 $1,553,125
Investment income 309 96,455 96,764 35,288
Intergovernmental revenue - 37,567 37,567 43,053
Mortgage interest earnings - 288 288 442
Miscellaneous 13,220 16,508 29,728 9,550
Total revenues 13,529 1,675,069 1,688,598 1,641,458
Expenditures:
Supplies and other charges 19,942 16,997 36,939 36,666
Developer assistance - 136,590 136,590 231,285
Payment to primary government - 101,501 101,501 1,383,417
Total expenditures 19,942 255,088 275,030 1,651,368
Excess (deficiency)of revenues over
expenditures (6,413) 1,419,981 1,413,568 (9,910)
Other financing sources (uses):
Transfer in 20,000 - 20,000 10,000
Transfer out - - - (2,140)
Total other financing sources 20,000 0 20,000 7,860
Net change in fund balance 13,587 1,419,981 1,433,568 (2,050)
Fund balance-January 1 18,943 3,226,055 3,244,998 3,247,048
Fund balance- December 31 $32,530 $4,646,036 $4,678,566 $3,244,998
139
I
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
December 31, 2005
With comparative totals for December 31, 2004
Center Moore University/
City Lake Area Winfield Onan Osborne
Assets
Cash and investments $1,108,462 $987,415 $454,601 $835,282 $202,436 1
Receivables:
Taxes:
Unremitted 1,794 9,242 164 1,165 3
Delinquent 8,015 10,150 289 2,859 5
Mortgage:
Deferred - - - - -
Land held for resale - 105,000 - - -
Total assets $1,118,271 $1,111,807 $455,054 $839,306 $202,444
Liabilities and Fund Balance
Liabilities:
Accounts payable $ - $ - $ - $ - $ -
Due to primary government - 1,501 - - -
Due to other funds - - - - -
Deferred revenue 8,015 115,149 289 2,859 5
Total liabilities 8,015 116,650 289 2,859 5
Fund balance (deficit):
Reserved for mortgage receivable - - - - -
Unreserved, undesignated 1,110,256 995,157 454,765 836,447 202,439
Total fund balance(deficit) 1,110,256 995,157 454,765 836,447 202,439
Total liabilities and fund balance $1,118,271 $1,111,807 $455,054 $839,306 $202,444
1
140
Exhibit G-5
Totals
Nonmajor
McGlynn Satellite Business 57th Avenue Housing Capital Project Funds
Bakeries Lane Apts. Center Redevelopment Replace. #1 2005 2004
$122,998 $276,033 $561,683 $2,286 $187,466 $4,738,662 $3,303,506
- - 94 14 - 12,476 7,631
- 791 169 21 - 22,299 13,405
- - 21,159 - - 21,159 46,636
- - - - 75,000 180,000 180,000
$122,998 $276,824 $583,105 $2,321 $262,466 $4,974,596 $3,551,178
$ - $ - $ - $ - $ - $ - $87
- - - - - 1,501 6,871
- - - 124,760 - 124,760 124,760
- 791 169 22 75,000 202,299 193,405
0 791 169 124,782 75,000 328,560 325,123
- - 21,159 - - 21,159 46,636
122,998 276,033 561,777 (122,461) 187,466 4,624,877 3,179,419
122,998 276,033 582,936 (122,461) 187,466 4,646,036 3,226,055
$122,998 $276,824 $583,105 $2,321 $262,466 $4,974,596 $3,551,178
141
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
For The Year Ended December 31, 2005
With comparative totals for the year ended December 31, 2004
Center Moore University/
City Lake Area Winfield Onan Osborne
Revenues:
Tax increment $551,162 $453,187 $52,278 $262,515 $32,923
Investment income 20,501 18,334 10,075 18,086 4,404
Intergovernmental revenue 19,253 13,371 - - -
Mortgage interest earnings - 288 - - -
Other - 16,508 - - -
Total revenues 590,916 501,688 62,353 280,601 37,327
Expenditures:
Supplies and other charges 2,063 2,458 863 1,110 1,262
Developer assistance - - - 121,025 -
Payment to primary government - 101,501 - - -
Total expenditures 2,063 103,959 863 122,135 1,262
Excess (deficiency)of
revenues over(under)expenditures 588,853 397,729 61,490 158,466 36,065
Other financing sources (uses):
Transfers out - - - - -
Net change in fund balance 588,853 397,729 61,490 158,466 36,065 1
Fund balance-January 1 521,403 597,428 393,275 677,981 166,374
Fund balance (deficit)-December 31 $1,110,256 $995,157 $454,765 $836,447 $202,439
142
Exhibit G-6
Totals
Nonmajor
McGlynn Satellite Business Commercial 57th Avenue Housing Capital Project Funds
Bakeries Lane Apts. Center Railway Redevelopment Replace.#1 2005 2004
$39,347 $40,065 $52,032 $ - $17,821 $22,921 $1,524,251 $1,553,125
2,473 5,977 12,371 - 42 4,192 96,455 35,288
- 4,943 - - - - 37,567 43,053
- - - - - - 288 442
- - - - - - 16,508
41,820 50,985 64,403 0 17,863 27,113 1,675,069 1,631,908
1,252 1,160 863 - 872 5,094 16,997 19,919
- - - - 15,565 - 136,590 231,285
- - - - - - 101,501 1,383,417
1,252 1,160 863 0 16,437 5,094 255,088 1,634,621
40,568 49,825 63,540 0 1,426 22,019 1,419,981 (2,713)
- - - - - - - (2,139)
40,568 49,825 63,540 0 1,426 22,019 1,419,981 (4,852)
82,430 226,208 519,396 - (123,887) 165,447 3,226,055 3,230,907
$122,998 $276,033 $582,936 $0 ($122,461) $187,466 $4,646,036 $3,226,055
143
b"Y b
CITY OF
FRIDLEY
144
AGENCY FUNDS
145
Exhibit H-1
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
December 31, 2005
Balance Balance
January 1, December 31,
2005 Additions Deletions 2005
Six Cities Watershed
Assets:
Cash and investments $20,580 $26,324 $22,879 $24,025
Receivables:
Taxes:
Unremitted 57 53 57 53
Delinquent 80 102 80 102
Total assets $20,717 $26,479 $23,016 $24,180
Liabilities:
Due to other governments $20,717 $24,180 $20,717 $24,180
Hotel/Motel Tax
Assets:
Receivables:
Accounts $1,590 $1,956 $1,590 $1,956
Liabilities:
Due to other governments $1,590 $1,956 $1,590 $1,956
Totals
Assets:
Cash and investments $20,580 $26,324 $22,879 $24,025
Receivables:
Accounts 1,590 1,956 1,590 1,956
Taxes:
Unremitted 57 53 57 53
Delinquent 80 102 80 102
Total assets $22,307 $28,435 $24,606 $26,136
Liabilities:
Due to other governments $22,307 $26,136 $22,307 $26,136
146
III. STATISTICAL SECTION (UNAUDITED)
147
CITY OF FRIDLEY, MINNESOTA
GOVERNMENT-WIDE EXPENSES BY FUNCTION
2005
(UNAUDITED)
Fiscal General Public Public Community Recreation and
Year* Government Safety Works Development Naturalist
2003 $3,944,682 $5,166,975 $3,749,412 $939,918 $1,105,240
2004 3,513,065 5,468,014 3,612,318 602,335 993,570
2005 4,448,175 5,514,330 4,055,860 793,836 767,599
*Government-wide expenses are not available for years prior to 2003.
148
Table 1
Interest on
Long-Term Storm
Debt Liquor Water Sewer Water Total
$605,639 $5,010,636 $2,030,654 $3,419,100 $359,189 $26,331,445
544,478 5,005,198 2,086,513 3,256,371 334,906 25,416,768
443,533 4,919,458 2,070,032 3,570,113 320,596 26,903,532
149
CITY OF FRIDLEY, MINNESOTA
GOVERNMENT-WIDE REVENUES
2005
(UNAUDITED)
Program Revenues
Charges Operating Capital
Fiscal For Grants and Grants and
Year* Services Contributions Contributions
2003 $13,346,352 $1,519,699 $1,012,151
2004 13,439,377 1,010,069 882,292
2005 13,694,084 1,122,326 1,657,106
*Government-wide revenues are not available for years prior to 2003.
150
Table 2
General Revenues
Grants and
Contributions
Not Restricted Unrestricted
Property Tax to Specific Investment
Taxes Increments Program Earnings Other Total
$5,273,363 $ - $3,751,560 $541,244 $23,500 $25,467,869
5,816,656 - 3,436,473 559,991 680 25,145,538
7,428,226 - 3,365,739 679,909 434 27,947,824
151
Table 3
CITY OF FRIDLEY, MINNESOTA
GENERAL GOVERNMENT EXPENDITURES BY FUNCTION(1)
LAST TEN FISCAL YEARS
(UNAUDITED)
Fiscal General Public Public Community Recreation! Debt
Year Government Safety Works Development Naturalist Service Total
1996 2 $2,331,060 $3,863,105 $2,306,088 $535,496 $759,457 $1,102,010 $10,897,216
1997 2,703,066 4,109,283 2,625,869 572,817 813,356 10,635,507 21,459,898
1998 2,790,588 4,098,048 2,826,545 648,842 902,159 5,141,866 16,408,048
1999 2,820,660 4,243,682 2,879,627 721,120 996,584 1,029,680 12,691,353
2000 3,113,175 4,392,025 2,661,927 775,312 1,031,174 1,058,772 13,032,385
2001 3,246,046 4,467,947 2,863,228 708,749 1,106,058 1,844,640 14,236,668
2002 3,487,505 4,905,475 3,065,570 710,780 1,139,351 1,836,471 15,145,152
2003 3,569,952 4,925,525 2,712,421 934,151 1,068,875 1,810,100 15,021,024
2004 3,155,617 5,156,529 2,608,316 593,393 960,723 5,749,013 18,223,591
2005 4,244,496 5,204,551 2,940,869 671,173 737,094 6,553,363 20,351,546
(')Includes General, Special Revenue, Capital Projects, Debt Service Funds and excludes capital outlay.
(2)Prior to 1996, the HRA was included as a blended component unit of the City.
152
Table 4
CITY OF FRIDLEY, MINNESOTA
GENERAL REVENUE BY SOURCE(')
LAST TEN FISCAL YEARS
(UNAUDITED)
General
Property
Taxes & Inter-
Fiscal Special Licenses governmental Charges For Miscellaneous
Year Assessments & Permits Revenue Services Revenue Total
1996 (2) $4,420,212 $828,652 $3,986,987 $1,299,495 $1,841,698 $12,377,044
1997 4,312,005 792,622 5,410,058 1,313,705 2,176,543 14,004,933
1998 4,520,684 846,145 5,603,676 1,514,548 1,967,013 14,452,066
1999 4,475,051 937,084 5,417,384 1,291,819 1,437,381 13,558,719
2000 4,529,716 1,276,615 7,169,251 1,391,203 2,136,893 16,503,678
2001 4,579,022 776,892 4,032,903 1,471,113 1,545,769 12,405,699
2002 5,497,648 647,676 4,114,622 1,531,782 1,088,236 12,879,964
2003 5,775,937 722,541 4,075,023 1,500,429 2,602,101 14,676,031
2004 6,110,020 785,582 3,207,482 1,533,253 2,616,507 14,252,844
2005 7,948,290 865,848 2,767,724 1,736,181 3,227,644 16,545,687
(')Includes General, Special Revenue, Capital Projects and Debt Service Funds.
(2)Prior to 1996,the HRA was included as a blended component unit of the City.
■
153
I
CITY OF
FRIDLEY
154
Table 5
CITY OF FRIDLEY, MINNESOTA
CERTIFIED PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
Collection Ratio of
Certified Current Percent of Prior Total Outstanding
Fiscal Tax Tax of Levy Year's Total Collections to Delinquent
Year Levy Collections(1) Collected Taxes Collections Tax Levy Taxes
1996 $3,897,629 $3,849,004 98.75% $21,977 $3,870,981 0.9932 :1 $72,063
1997 3,891,612 3,809,416 97.89% 22,115 3,831,531 0.9846 :1 120,696
1998 4,010,570 3,935,004 98.12% 3,584 3,938,588 0.9821 :1 83,110
1999 4,034,919 4,064,819 100.74% 36,168 4,100,987 1.0164 :1 36,583
2000 4,035,671 3,928,752 97.35% 44,565 3,973,317 0.9845 :1 118,399
2001 4,205,000 4,147,788 98.64% 8,623 4,156,411 0.9884 :1 132,404
2002 5,613,131 5,579,777 99.41% 40,354 5,620,131 1.0012 :1 112,252
2003 5,825,855 5,763,097 (2) 98.92% 40,780 5,803,877 0.9962 :1 80,324
2004 6,483,745 6,310,429 (2) 97.33% 39,210 6,349,639 0.9793 :1 87,336
2005 7,792,949 7,699,290 (2) 98.80% 27,869 7,727,159 0.9916 :1 129,513
('Excludes collections from properties pledged to tax increment.
(2)Current tax collections include the market value homestead credit(MVHC).
155
CITY OF FRIDLEY, MINNESOTA
ESTIMATED MARKET VALUE AND TAXABLE VALUE OF ALL PROPERTY
LAST TEN FISCAL YEARS
(UNAUDITED)
Fiscal year payable 1996 1997 1998 1999
Assessment year 1995 1996 1997 1998
Population,fiscal year 28,267 28,419 28,335 28,623
Real property:
Estimated market value $1,120,412,065 $1,152,674,700 $1,209,684,500 $1,274,348,500
Taxable capacity value:
Homestead $7,784,740 $8,199,059 $8,307,553 $8,556,633
Excess and nonhomestead 19,554,250 20,139,316 18,039,448 16,302,168
Less fiscal disparities contribution (4,974,987) (5,147,086) (4,685,134) (4,337,632)
Less tax increment value (2,692,879) (2,760,628) (2,638,263) (2,381,402)
Taxable value $19,671,124 $20,430,661 $19,023,604 $18,139,767
Personal property:
Estimated market value $19,576,200 $19,576,200 $19,164,700 $19,315,800
Taxable capacity value $916,940 $916,940 $766,322 $673,798
Totals:
Estimated market value $1,139,988,265 $1,172,250,900 $1,228,849,200 $1,293,664,300
Taxable value $20,588,064 $21,347,601 $19,789,926 $18,813,565
Per market value ratios:
Taxable value .018:1 .018:1 .015:1 .015:1
Per capita valuations:
Estimated market value $40,329 $41,249 $43,369 $45,197
Taxable value $728 $751 $698 $657
Real property:
Taxable value
Fiscal disparities distribution $3,007,783 $3,222,432 $3,116,450 $2,941,279
Notes:
(')The Anoka County Auditor's Office determines taxable values on January 2 of each year pursuant to State
Statutes. The Total Taxable Value on January 2, 2004 upon which the 2005 levy was based was$20,713,677.
156
Table 6
2000 2001 2002 2003 2004 2005
1999 2000 2001 2002 2003 2004(1)
27,449 27,854 27,877 27,460 27,480 27,088
$1,316,382,300 $1,499,258,100 $1,669,007,700 $1,938,795,600 $2,129,450,800 $2,258,447,100
$9,152,661 $10,201,895 $9,026,662 $9,962,555 $11,163,343 $12,619,948
1 6,814,763 19,002,890 12,973,031 14,662,701 15,783,274 15,925,055
(4,312,759) (4,769,074) (3,223,214) (3,579,128) (4,292,061) (4,624,091)
(2,475,455) (3,272,618) (2,552,353) (3,810,890) (4,216,629) (3,608,400)
$19,179,210 $21,163,093 $16,224,126 $17,235,238 $18,437,927 $20,312,512
$19,160,600 $19,089,700 $19,133,400 $19,225,500 $19,604,300 $20,172,200
$668,384 $645,895 $360,466 $382,533 $390,109 $401,165
$1,335,542,900 $1,518,347,800 $1,688,141,100 $1,958,021,100 $2,149,055,100 $2,278,619,300
$19,847,594 $21,808,988 $16,584,592 $17,617,771 $18,828,036 $20,713,677
.015:1 .014:1 .010:1 .010:1 .010:1 .009:1
$48,655 $54,511 $60,557 $71,304 $78,204 $84,119
$723 $783 $595 $642 $685 $765
$3,355,535 $3,677,471 $2,278,406 $2,572,562 $2,703,374 $2,729,105
157
CITY OF
FRIDLEY
158
Table 7
CITY OF FRIDLEY, MINNESOTA
SIGNIFICANT MINNESOTA TAX POLICIES
December 31, 2005
GENERAL
All non-exempt property in Minnesota is subject to taxation by local taxing districts. The tax levied on a property is
determined by computing its tax capacity, which is the property's market value multiplied by the appropriate class rate.
The taxes on a property are computed by multiplying the tax rate by the property's tax capacity. The tax rate is
determined by the County Auditor, dividing each tax levy by the taxing jurisdiction's adjusted net tax capacity.
Properties are physically reviewed by assessors at least once every four years.
The assessor's market value is multiplied by the appropriate class rates to arrive at the adjusted net tax capacity (taxable
value). The class rates vary by class of property.
Type of Property 2005
Class
Rates
Residential Homestead
First$500,000 1.00%
Over$500,000 1.25%
Commercial/Industrial
First$150,000 1.50%
Over$150,000 2.00%
Rentals
Apartments: 4+ units 1.25%
Less than 4 units 1.25%
Low Income Rental Housing .75%
Property Tax Refund. Residential property tax credits are indexed by the percentage of net property tax to household
income to the extent a homeowner's property tax exceeds a percentage of household income. The percentage ranges
from 1.0%for incomes below$1,189 up to 4%for incomes of$77,519. The maximum refund amount is$1,450.
In 1989, the Minnesota Legislature also enacted a targeting property tax credit program. This program provides refunds
to homestead property owners for part of their tax increase in excess of 12 percent, if the increase is at least$100. The
refund is equal to 60 percent of the increase over 12 percent. The maximum refund is$1,000.
159
CITY OF FRIDLEY, MINNESOTA
TAX CAPACITY RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
(UNAUDITEDI
School School School School
Fiscal District District District District
Year City No. 11 No. 13 No. 14 No. 16(1)
1996 16.565% 64.387% 60.182% 71.790% 67.583%
1997 15.242% 55.588% 84.748% 66.129% 61.268%
1998 17.119% 51.824% 68.491% 69.402% 58.662%
1999 18.326% 54.856% 68.837% 67.728% 61.111%
2000 17.070% 51.792% 66.685% 61.655% 51.440%
2001 16.350% 52.281% 47.452% 45.466% 39.458%
2002 29.906% 29.082% 38.614% 17.855% 25.985%
2003 28.616% 26.941% 20.303% 29.966% 22.054%
2004 30.248% 21.050% 22.833% 22.683% 21.421%
2005 33.565% 21.492% 19.993% 21.606% 16.118%
Notes:
(1)Vocational/Technicai District#916 is included in District No. 16.
(2)Six Cities Watershed District is included with School District No. 11. r
(3)Rice Creek Watershed District is included with School District No. 13, 14 and 16.
(4)Stonybrook Creek Subwatershed is included with School District No. 11 and 14.
160
Table 8
Total School School School School
Special District District District District
County Districts No. 11(2'4) No. 13(3) No. 14(3'4) No. 16(1'3)
31.036% 6.122% 117.662% 113.880% 125.488% 121.656%
■ 30.091% 6.044% 108.218% 137.656% 119.067% 114.551%
30.618% 6.603% 107.400% 124.314% 125.225% 114.679%
32.265% 6.603% 114.104% 128.158% 127.049% 120.765%
30.861% 8.224% 108.610% 123.385% 118.575% 108.621%
28.859% 8.218% 106.287% 101.819% 99.833% 94.139%
■
' 37.976% 7.528% 105.313% 115.198% 94.439% 102.639%
37.714% 7.666% 102.483% 96.360% 105.925% 98.111%
35.221% 7.623% 95.446% 97.758% 97.525% 96.346%
33.080% 8.085% 96.945% 96.329% 97.942% 92.454%
161
CITY OF
FRIDLEY
162
Table 9
CITY OF FRIDLEY, MINNESOTA
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
Total
Current Current Collections Delinquent Collections Outstanding
Fiscal Assessments Assessments to Amount Assessments Total to Current Delinquent
Year Due Collected Due Collected Collected Assessment Assessments
1996 $483,347 $461,929 95.57% $73,178 $535,107 110.71% $104,909
1997 540,313 507,588 93.94% 47,068 554,656 102.65% 74,711
1998 524,560 483,721 92.21% 44,464 528,185 100.69% 70,596
1999 482,364 457,546 94.85% 36,695 494,241 102.46% 61,103
2000 489,933 473,705 96.69% 34,248 507,953 103.68% 33,050
2001 505,054 494,686 97.95% 2,522 497,208 98.45% 41,327
2002 461,603 438,607 95.02% 24,972 463,579 100.43% 39,009
2003 418,432 398,545 95.25% 32,364 430,909 102.98% 26,530
2004 307,622 288,404 93.75% 19,821 308,225 100.20% 18,091
2005 337,211 296,742 88.00% 8,929 305,671 90.65% 39,895
163
CITY OF FRIDLEY, MINNESOTA
HISTORY OF CERTIFIED TAX LEVIES AND TAX RATES 1
LAST TEN FISCAL YEARS
(UNAUDITED)
1996(1) 1997(1) 1998(1) 1999(1)
Certified tax levies:
General Fund $3,821,853 $3,806,950 $3,921,159 $3,947,133
Special Revenue Fund - - - -
Capital Improvement Fund 72,689 72,689 72,689 72,689
Subtotal 3,894,542 3,879,639 3,993,848 4,019,822
Enterprise Fund - 8,900 8,900 8,900
Agency Fund 3,087 3,073 7,822 6,197
Total $3,897,629 $3,891,612 $4,010,570 $4,034,919
Tax Capacity Rate
General Fund 16.258% 15.399% 16.807% 17.995%
Special Revenue Fund - - - -
Capital Improvement Fund 0.307% 0.294% 0.312% 0.331%
Enterprise Fund _ 0.000% 0.625% 0.516% 0.687%
Subtotal 16.565% 16.318% 17.635% 19.013%
Agency Fund 0.024% 0.023% 0.067% 0.049%
Total 16.589% 16.341% 17.702% 19.062%
Notes:
(')Beginning in 1994, the State law required the City to certify its tax levy after subtracting Homestead and
Agricultural Aid Credit(HACA).
(2)For 2002 the levy includes the market value homestead credit(MVHC).
164
Table 10
2000w1w 2001(1) 2002(1) 2003(2) 2004(2) 2005(2)
$3,947,882 $4,117,233 $5,507,313 $5,717,783 $6,372,785 $7,398,970
- - - - - 275,000.00
72,689 72,667 90,719 92,972 95,860 378,879
4,020,571 4,189,900 5,598,032 5,810,755 6,468,645 8,052,849
8,900 8,900 8,900 8,900 8,900 8,900
6,200 6,200 6,200 6,200 6,200 6,200
$4,035,671 $4,205,000 $5,613,132 $5,825,855 $6,483,745 $8,067,949
16.761% 16.049% 29.421% 28.152% 29.800% 30.851%
- - - - 1.147%
0.309% 0.283% 0.485% 0.464% 0.448% 1.580%
0.613% 0.534% 0.762% 0.734% 0.706% 0.672%
17.683% 16.866% 30.668% 29.350% 30.954% 34.250%
0.045% 0.043% 0.059% 0.057% 0.054% 0.050%
17.728% 16.909% 30.727% 29.407% 31.008% 34.300%
,
1
165
S h
Ey
tea:
At
CITY OF
FRIDLEY
166
Table 11
CITY OF FRIDLEY, MINNESOTA
RATIO OF NET GENERAL BONDED DEBT
TO TAXABLE VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
(UNAUDITED)
Ratio of
Net General Net
City Debt Bonded Debt General
Total Gross Service Fund Special Net General to Total Bonded
Fiscal Taxable Bonded Monies Assessment, Bonded Taxable Debt
Year Population Value Debt Available and Revenue Debt Value Per Capita
1996 28,267 $20,588,064 $20,100,000 $ - $20,100,000 $ - $ - $ -
1997 28,419 21,347,601 19,880,000 - 19,880,000 - - -
1998 28,335 19,789,926 20,675,000 - 20,675,000 - - -
1999 28,623 18,813,565 20,080,000 - 20,080,000 - - -
2000 27,449 19,847,594 18,335,000 - 18,335,000 - - -
2001 27,854 21,808,988 16,880,000 - 16,880,000 - - -
2002 27,877 28,135,726 15,370,000 - 15,370,000 - - -
2003 27,460 17,617,771 13,820,000 - 13,820,000 - - -
2004 27,480 18,828,036 15,190,000 - 15,190,000 - - -
! 2005 27,088 20,713,677 13,955,000 - 13,955,000 - - -
167
Table 12
Page 1 of 2
CITY OF FRIDLEY, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 2005
(UNAUDITED)
Market Value $2,258,447,100
(A)Debt Limit 2% of Market Value $45,168,942
Amount of Debt Applicable to Debt Limit:
Total Debt $13,955,000
(B)Deductions:
Tax Increment Redevelopment Bonds $8,335,000
Improvement Bonds 1,805,000
Revenue Bonds 3,815,000 13,955,000
Total Amount of Debt Applicable to Debt Limit -0-
Legal Debt Margin $45,168,942
Notes:
(A)M.S.A. Section 475.53 (see following page)
(B)M.S.A. Section 475.51 (see following page)
168
Table 12
Page 2 of 2
CITY OF FRIDLEY MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED)
YEAR ENDED DECEMBER 31, 2005
Note (A):
M.S.A. Section 475.53 et seq. Limit on Net Debt
"Subdivision 1. Generally, except as otherwise provided in sections 475.51 to 475.75, no municipality,
except a school district or a city of the first class, shall incur or be subject to a net debt in excess of two
percent of the market value of taxable property in the municipality."
Note (B):
M.S.A. Section 475.51 Definitions
"Subdivision 4. "Net Debt" means the amount remaining after deducting from its gross debt the amount of
current revenues which are applicable within the current fiscal year to the payment of any debt, and the
aggregate of the principal of the following:
(1) Obligations issued for improvements which are payable wholly or partly from the proceeds of
special assessments levied upon property specially benefited thereby, including those which are
general obligations of the municipality issuing them, the municipality is entitled to reimbursement
in whole or in part from the proceeds of the special assessments.
(2) Warrants or orders having no definite or fixed maturity.
(3) Obligations payable wholly from the income from revenue producing conveniences.
(4) Obligations issued to create or maintain a permanent improvement revolving fund.
(5) Obligations issued for the acquisition and betterment of public waterworks systems, public
lighting, heating or power systems, and any combination thereof, or for any other public
convenience from which a revenue is or may be derived.
(6) Debt service loans and capital loans made to a school district under the provisions of sections
124.42 and 124.431.
(7) Amount of all money and the face value of all securities held as a debt service fund for the
extinguishment of obligations other than those deductible under this subdivision.
(8) Obligations to repay loans made under section 216C.37.
(9) Obligations to repay loans made from money received from litigation or settlement of alleged
violations of federal petroleum pricing regulations.
(10) All other obligations which under the provisions of law authorizing their issuance are not to be
included in computing the net debt of the municipality.
169
Table 13
CITY OF FRIDLEY, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING
BONDED DEBT AND COMPARATIVE DEBT RATIOS
December 31,2005
(UNAUDITED)
Net
Percent of Net General
Debt Debt General Bonded
Gross Service Net Applicable Bonded Debt
Governmental Unit Debt Funds Debt to City Debt Per Capita
Direct&overlapping debt:
i
Direct debt:
City of Fridley $13,955,000 $6,155,280 $7,799,720 100.00% $7,799,720 $288
Overlapping debt:
School Districts:
No. 11 177,417,115 - 177,417,115 1.60% 2,838,674 105 1
No. 14 16,605,000 - 16,605,000 100.00% 16,605,000 613 r
No. 16 21,875,000 - 21,875,000 36.80% 8,050,000 297
Metro Council 1,025,002,184 99,356,050 925,646,134 1.19% 11,015,189 407
Anoka County 85,166,720 - 85,166,720 18.04% 15,364,076 567
Vocational/Technical 1,390,000 - 1,390,000 2.21% 30,719 1
District No.916
Overlapping debt 1,327,456,019 99,356,050 1,228,099,969 53,903,658 1,990
Total direct and
overlapping debt $1,341,411,019 $105,511,330 $1,235,899,689 $61,703,378 $2,278
I
I
170
Table 14
CITY OF FRIDLEY, MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR GENERAL BONDED DEBT TO TOTAL GENERAL
GOVERNMENT EXPENDITURES
LAST TEN FISCAL YEARS
(UNAUDITED)
r
Ratio to
Total Total Debt Service
Fiscal Debt General to General
Year Principal Interest Service Expenditures(1) Expenditure
1996(2) $175,000 $896,011 $1,071,011 $10,897,216 10%
1997 9,675,000 897,930 10,572,930 21,459,898 49%
1998 4,310,000 796,329 5,106,329 16,408,048 31%
1999 295,000 729,889 1,024,889 12,691,353 8%
2000 300,000 753,063 1,053,063 13,032,385 8%
2001 1,105,000 737,471 1,842,471 14,236,668 13%
2002 1,150,000 684,271 1,834,271 15,145,152 12%
2003 1,180,000 627,899 1,807,899 14,814,303 12%
2004 5,155,000 561,045 5,716,045 18,444,394 31%
2005 6,095,000 422,366 6,517,366 20,352,455 32%
Notes:
(1)Includes General, Special Revenue, Debt Service and Capital Projects and Expendable Trust Funds and
excludes capital outlay.
(2)Prior to 1996, the HRA was included as a blended component unit of the City.
171
Table 15
CITY OF FRIDLEY, MINNESOTA
REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
(UNAUDITED)
Net
Operating
Revenue
Direct Direct Available
Fiscal Operating Operating For Debt Debt Service Requirements
Year Revenue) Expenses(2) Service Principal _ Interest Total Coverage
1996 $5,791,287 $5,648,603 $142,684 $115,000 $173,553 $288,553 0.49
1997 6,660,575 5,339,754 1,320,821 120,000 256,459 376,459 3.51
1998 6,520,948 5,469,928 1,051,020 260,000 275,498 535,498 1.96
1999 5,389,003 5,242,663 146,340 300,000 281,975 581,975 0.25
2000 5,150,374 4,965,373 185,001 1,445,000 197,277 1,642,277 0.11
2001 4,994,669 5,148,461 (153,792) 350,000 175,115 525,115 (0.29)
2002 5,016,233 5,251,371 (235,138) 360,000 158,422 518,422 (0.45)
2003 5,330,603 5,664,741 (334,138) 370,000 141,002 511,002 (0.65)
2004 5,371,662 5,430,082 (58,420) 390,000 334,960 724,960 (0.08)
2005 5,435,361 5,821,541 (386,180) 1,590,000 139,200 1,729,200 (0.22)
Notes:
(')"total operating revenue.
(2)Total operating expenses including depreciation.
f
I
172
Table 16
CITY OF FRIDLEY, MINNESOTA
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
(UNAUDITED)
Annual
Per Average
Fiscal Capita Median School Unemployment
Year Population(') Income Age Enrollment(4) Rate(5)
1996 28,267 $18,672 32.5 4,249 3.4%
1997 28,419 20,808 36.4 4,272 2.6%
1998 28,335 22,405 36.3 3,524 2.1%
1999 28,623 24,113 36.9 3,534 2.3%
2000 27,449 (2) 25,357 37.2 3,543 2.8%
2001 27,854 25,995 36.2 3,888 3.6%
2002 27,877 28,324 36.6 3,937 4.4%
' 2003 27,460 22,687 37.1 3,824 4.3%
2004 27,480 25,169 37.4 3,824 5.0%
2005 27,088 25,682 37.8 3,824 5.0%
Notes:
(1)Estimated
(2)2000 Population Report- Bureau of the Census
(3)Maxfield Research
(4)Estimated-excludes Totino Grace Parochial High School, as it is not supported by property tax dollars.
(5)Minnesota Department of Economic Security-Twin Cities Labor Market
■
173
Table 17
CITY OF FRIDLEY, MINNESOTA
CONSTRUCTION AND PROPERTY VALUE
LAST TEN FISCAL YEARS
(UNAUDITED)
Commercial Construction Residential Construction
Number Number Estimated Market Value
Fiscal of of Taxable Non-
Year Units Value Units Value Property Taxable(1) Total
1996 108 $20,141,727 719 $9,971,879 $1,139,988,265 $185,043,100 $1,325,031,365
1997 101 16,046,463 737 8,894,213 1,208,684,500 191,559,200 1,400,243,700
1998 111 9,605,305 2,977 11,766,221 1,254,840,000 209,634,200 1,464,474,200
1999 90 27,149,247 1,632 15,487,489 1,293,664,300 208,033,400 1,501,697,700
2000 96 93,625,644 836 8,020,233 1,335,542,900 208,409,300 1,543,952,200
2001 70 11,362,547 667 10,445,492 1,470,697,000 205,912,700 1,676,609,700
2002 52 4,905,398 730 6,713,930 1,604,863,900 212,252,400 1,817,116,300
2003 65 7,852,931 642 8,225,267 1,809,222,900 211,029,800 2,020,252,700
2004 99 15,466,115 624 6,563,354 2,008,163,200 308,042,173 2,316,205,373
2005 86 17,749,556 750 7,307,981 2,175,174,400 311,172,767 2,486,347,167
Note:
(1)Non-taxable property is reevaluated by the city assessors every six years
174
Table 18
CITY OF FRIDLEY, MINNESOTA
PRINCIPAL TAXPAYERS
December 31,2004
(UNAUDITED)
Fiscal Year 2005
Percent
2004 of Total
Taxable Taxable
Rank Taxpayer Type of Business Valuation Valuation
1 Medtronic, Inc. Electro-medical devices $74,304,400 3.26%
2 Target Corporation Target discount store,warehouse and office 38,252,100 1.68%
3 Shamrock Investments Murphy Warehouses 25,582,600 1.12%
4 University Avenue Associates Springbrook Apartments 20,706,600 0.91%
5 Maurice Fillister(Georgetown) Georgetown apartments 20,364,900 0.89%
6 Retail Trust IV(Wal-Mart/Sam's) Wal-Mart/Sam's Club discount stores 15,963,500 0.70%
7 Riverpointe Apartments Riverpointe Apartments 15,388,400 0.68%
8 Cummins Power(Onan) Portable electric generators 13,406,900 0.59%
9 Northwest Racquet&Swim Club Health and Tennis Club 11,766,300 0.52%
10 Burlington Northern Railroad Operating property 10,812,900 0.47%
Total $246,548,600 10.82%
175
Table 19
CITY OF FRIDLEY, MINNESOTA
INSURANCE COVERAGE
December 31, 2005
(UNAUDITED)
Municipal Property, Crime & Bond:
Property $34,712,484
Mobile Property(also refered to as Inland Marine).
Scheduled Over$25,000 1,575,743
Unscheduled$25,000& Less 556,910
Crime(inside/outside&forgery). 100,000
Bonds 350,000
Municipal Liability:
Each Occurance Limit $1,000,000
Automobile Liability:
Liability $1,000,000
Personal Injury Protection Mn Statutory Coverage
Uninsured/Underinsured Motorist Mn Statutory Coverage
Deductibles on the above insurance are as follows:
Each Occurrence Deductible 50,000
General Annual Aggregate Deductible 100,000
If the General Annual Aggregate Deductible is exceeded
then the following deductible applies: 1,000
Boiler& Machinery:
Equipment Breakdown Limit 32,612,181
Liquor Liability:
Outdoor Signs-Cub 10,000
Outdoor Signs- Hwy 65 15,000
Money&Securities Inside/Outside the Premises-Hwy 65 20,000/10,000
Money&Securities Inside/Outside the Premises-Cub 30,000/20,000
Employee Dishonesty 10,000
Liability& Medical Expenses 1,000,000
General Aggregate Limit 2,000,000
Medical Payments Limit 10,000
Hired & Non-owned Auto Liability 1,000,000
Liquor Liability- Each occurance 1,000,000
Liquor Liability-Aggregate 2,000,000
Accident Plan for Volunteers:
Coverage A-Acciental Death/Permanent Impairment 100,000
Coverage B- Permanent Impairement Benefit 100,000
Coverage C-Weekly Disability (max of 26 weeks) 400
Coverage D-Medical Benefit 1,000
Total Limit of Liability per Accident 500,000
Worker's compensation:
Bodily Injury-Each Occurrence 1,000,000
Bodily Injury by Disease-Agreement Limit 1,000,000
176
Table 20
CITY OF FRIDLEY, MINNESOTA
MISCELLANEOUS STATISTICAL INFORMATION
December 31, 2005
(UNAUDITED)
Date of Incorporation (Village of Fridley) July 1, 1949
Date of Adoption of City Charter September 10, 1957
effective
September 25, 1957
Form of Government Council/Manager
Fiscal year begins January 1
Area of City 11 square miles
Bond rating (Moody's Investors Service, Incorporated) Aa-1
Elections:
Last election -General Federal, State & Local November 8,2005
Registered voters 15,817
Number of votes cast 4,326
Percent(%)of registered voters voting 27.4%
Population:
1950- Federal Census 3,796
1960- Federal Census 15,182
1970- Federal Census 29,233
1980- Federal Census 30,228
1990- Federal Census 28,335
1996- Estimated 28,267
1997- Estimated 28,419
1998- Estimated 28,335
1999- Estimated 28,623
2000- Federal Census 27,449
2001 - Estimated 27,854
2002- Estimated 27,877
2003- Estimated 27,460
2004- Estimated 27,480
2005- Estimated 27,088
Permanent Employees--As of December 31
1996 136
1997 136
1998 140
1999 142
2000 138
2001 138
2002 139
2003 129
2004 135
2005 131
177
Table 20
Continued
CITY OF FRIDLEY, MINNESOTA
MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED)
December 31, 2005
(UNAUDITED)
Fire protection:
Number of stations 3
Volunteer firefighters 27
Full-time firefighters 6
Fire rating Class 3
Police protection:
Number of stations 1
Number of sworn officers 38
Number of street lights 1,055
Number of traffic signal installations 35
Number of other special signal installations 2
Number of civil defense warning sirens 8
Miles of streets and sidewalks (including State and County):
City streets 127
Trunk highways 11
County roads 15
Sidewalks and bikeways 14
Miles of sewer:
Storm 50
Sanitary 103
Miles of watermains 113
Municipal water system source City of Fridley Water Plant(13 wells)
Capacity of 15.7 million gallons per day
Number of water connections December 31 8,481
Daily average consumption (gallons) 5.2 million gallons
Elevated stored capacity 2.0 million gallons
Water storage reservoirs 3.0 million gallons
Stand pipe 1.5 million gallons
Number of fire hydrants 1,012
Municipal sewer system:
Disposal --through Metropolitan Council Environmental Service
Number of sewer connections December 31 8,250
Average daily flow(includes infiltration/inflow) 4.62 million gallons
178
Table 20
Continued
CITY OF FRIDLEY, MINNESOTA
MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED)
December 31, 2005
(UNAUDITED)
Parks and recreation areas:
Developed 420 Acres
Undeveloped 262 Acres
Total 682 Acres
City and
County Parks Schools Total
Number of:
Hockey rinks 5 2 7
General skating rinks 10 2 12
Playgrounds 29 2 31
Swimming beaches 1 0 1
Swimming pools 0 1 1
Picnic grounds 19 0 19
Day camp sites 1 0 1
Baseball diamonds 4 5 9
Softball diamonds 21 3 24
Outdoor basketball courts 19 4 23
Tennis courts 22 19 41
Horseshoe courts 16 0 16
Archery ranges 1 0 1
Permanent playground buildings 3 0 3
Permanent picnic shelters 15 0 15
Soccer/football fields 8 3 11
179
Table 21
CITY OF FRIDLEY, MINNESOTA
GENERAL INFORMATION
December 31, 2005
(UNAUDITED)
Location -Transportation
The City of Fridley, with a total land area of eleven square miles and an estimated population of 27,088, is located at the
northern boundaries of Minneapolis and Columbia Heights, about eight miles from the Minneapolis central business
district. Freight service is provided in the area by local and interstate truck lines and Burlington Northern Railroad.
Commuter transportation is available through Metropolitan Transit Commission facilities. Highways serving Fridley
include Interstate #694 (beltline around the metropolitan area) and State Highways. An International Airport, located
approximately twenty-five miles south of Fridley, and private business aviation facilities located at the Anoka County and .
Crystal Airports, provide air transportation and are operated by the Metropolitan Airport Commission.
Medical Facilities
Medical facilities in Fridley include Health One Unity Hospital, a 275-bed hospital with an adjacent clinic (Unity
Professional Building), Fridley Plaza Clinic, Fridley Medical Center, and Lynwood Health Care Center.
Education
ilFridley is served by four school districts, a major portion of the City is located within Fridley Independent School District
No. 14. The Fridley School District operates two elementary schools, a junior high and senior high school, employing
159 certified personnel in the education of about 2,645 students. Totino Grace Parochial High School has an enrollment
of approximately 1150. Portions of the Columbia Heights School District (13), the Spring Lake Park School District (16)
and Anoka/Hennepin School District(11)also lie within the City of Fridley. Those districts have an estimated enrollment
of 1179 students living within the City of Fridley.
Colleges and universities, vocational-technical and specialized training schools are located throughout the metropolitan
area within easy commuting distances of Fridley.
Major Employers
Major employers in the City of Fridley include:
Employer Product or Service Employees
Medtronic, Inc. Electro-medical devices and headquarters 2,500
United Defense Systems Pumps and naval ordinance 1,800
Cummins Power(Onan) Portable generators, electronic equipment 1,727
Unity Hospital Medical and surgical services 1,400
Target Discount department store 600
Minco Products Electronic devices 500
Tiro Industries Manufacture personal care products 400
Kurt Manufacturing Manufacture precision parts 350
Park Construction Highway, street and bridge construction 300
Parsons Electric Electric contractor 300
180