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1999 CAFR AFIMININXIMMIMMMIIMI COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF FRIDLEY MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 1999 CITY OF FRIDLEY, MINNESOTA Comprehensive Annual Financial Report December 31, 1999 a Prepared by: Finance Department Richard D. Pribyl Finance Director CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1999 TABLE OF CONTENTS EXHIBIT PAGE INTRODUCTORY SECTION Elected and Appointed Officials 3 City Administrative Organizational Structure 1999 4 City Manager's Letter of Transmittal 7 —. Chief Executive Officer's Letter of Transmittal 9 Certificate of Achievement for Excellence in Financial Reporting 19 FINANCIAL SECTION Independent Auditor's Report 23 General Purpose Financial Statements-Combined Financial Statements: Combined Balance Sheet-All Fund Types and Account Groups and Discretely Presented Component Units A-1 29 Combined Statement of Revenues, Expenditures and Changes .. in Fund Balance-All Governmental Fund Types and Expendable Trust Funds and Discretely Presented Component Units A-2 36 Combined Statement of Revenues, Expenditures and Changes in Fund Balances- Budget and Actual -General, Special Revenue and Budgeted Capital Projects Fund Types A-3 38 Combined Statement of Revenues, Expenses and Changes in Retained Earnings-All Proprietary Fund Types A-4 40 Combined Statement of Cash Flows-All Proprietary Fund Types A-5 41 Notes to Financial Statements 43 Financial Statements of Individual Funds: General Fund: Comparative Balance Sheet B-1 74 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual B-2 75 Schedule of Revenues and Other Financing Sources-Budget and Actual B-3 76 Schedule of Expenditures and Other Financing Uses-Budget and Actual B-4 79 .. CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1999 TABLE OF CONTENTS EXHIBIT PAGE Special Revenue Funds: Combining Balance Sheet C-1 84 Combining Statement of Revenues, Expenditures and Changes in Fund Balance C-2 86 Cable TV Fund: Comparative Balance Sheet C-3 88 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual C-4 89 Grant Management Fund: Comparative Balance Sheet C-5 90 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual C-6 91 Solid Waste Abatement Fund: Comparative Balance Sheet C-7 92 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual C-8 93 HRA Reimbursement Fund: Comparative Balance Sheet C-9 94 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual C-10 95 ^ Drug and Gambling Forfeiture Fund: Comparative Balance Sheet C-11 96 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual C-12 97 Housing Revitalization Special Revenue Fund: ^ Comparative Balance Sheet C-13 98 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual C-14 99 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1999 TABLE OF CONTENTS EXHIBIT PAGE Special Revenue Funds: (continued) Chemical Assessment Team Fund: Comparative Balance Sheet C-15 100 ... Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual C-16 101 F. C. C. Donations Fund: Comparative Balance Sheet C-17 102 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual C-18 103 Debt Service Funds: Combining Balance Sheet D-1 106 Combining Statement of Revenues, Expenditures and Changes in Fund Balance D-2 107 Capital Projects Funds: Combining Balance Sheet E-1 111 Combining Statement of Revenues, Expenditures and Changes in Fund Balance E-2 112 Capital Improvements Fund: Comparative Balance Sheet E-3 114 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual E-4 115 Enterprise Funds: Combining Balance Sheet F-1 118 Combining Statement of Revenues, Expenses and Changes in Retained Earnings F-2 119 Combining Statement of Cash Flows F-3 120 Liquor Fund: Comparative Balance Sheet F-4 121 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1999 TABLE OF CONTENTS EXHIBIT PAGE Enterprise Funds: (continued) Liquor Fund: (continued) Comparative Statement of Revenues, Expenses and Changes in Retained Earnings F-5 122 Comparative Statement of Cash Flows F-6 123 Public Utilities Fund: Comparative Balance Sheet F-7 124 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings F-8 126 Comparative Statement of Cash Flows F-9 127 Internal Service Funds: Combining Balance Sheet G-1 130 Combining Statement of Revenues, Expenses and Changes in Retained Earnings G-2 131 Combining Statement of Cash Flows G-3 132 Employee Benefits Fund: Comparative Balance Sheet G-4 133 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings G-5 134 Comparative Statement of Cash Flows G-6 135 Self Insurance Fund: Comparative Balance Sheet G-7 136 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings G-8 137 Comparative Statement of Cash Flows G-9 138 — CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1999 TABLE OF CONTENTS EXHIBIT PAGE Internal Service Funds: (continued) Information Systems Fund: Comparative Balance Sheet G-10 139 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings G-11 140 Comparative Statement of Cash Flows G-12 141 Trust and Agency Funds: Combining Balance Sheet H-1 144 Industrial Development Revenue Bond Trust Fund: r Comparative Statement of Revenues, Expenditures and Changes in Fund Balance H-2 145 All Agency Funds: Combining Statement of Changes in Assets and Liabilities H-3 146 General Fixed Assets Account Group: Comparative Schedule of General Fixed Assets 1-1 148 Schedule of Changes in General Fixed Assets- By Function and Activity 1-2 149 — Schedule of General Fixed Assets-By Function and Activity 1-3 150 General Long-Term Debt Account Group: Comparative Schedule of General Long Term Debt J-1 152 .. STATISTICAL SECTION: General Government Expenditures by Function -Last Ten Fiscal Years 1 155 General Revenues by Source-Last Ten Fiscal Years 2 156 — Certified Property Tax Levies and Collections-Last Ten Fiscal Years 3 157 Estimated Market Value and Taxable Value of All Taxable Property- Last Ten Fiscal Years 4 158 .. CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT .� YEAR ENDED DECEMBER 31, 1999 TABLE OF CONTENTS EXHIBIT PAGE STATISTICAL SECTION: (continued) -, Significant Minnesota Tax Policies 5 161 Property Tax Rates-Direct and Overlapping Governments-Last Ten Fiscal Years 6 162 Special Assessment Levies and Collections- Last Ten Fiscal Years 7 165 History of Certified Tax Levies and Tax Rates-Last Ten Fiscal Years 8 166 Ratio of Net General Bonded Debt to Taxable Value and Net Bonded Debt Per Capita - Last Ten Fiscal Years 9 169 Computation of Legal Debt Margin 10 170 Computation of Direct and Overlapping Bonded Debt and Comparative Debt Ratios 11 172 .� Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Government Expenditures-Last Ten Fiscal Years 12 173 Revenue Bond Coverage-Last Ten Fiscal Years 13 174 r.. Demographic Statistics- Last Ten Fiscal Years 14 175 Construction and Property Value -Last Ten Fiscal Years 15 176 Principal Taxpayers 16 177 Insurance Coverage 17 178 Miscellaneous Statistical Information 18 179 General Information 19 182 Ol gook a INTRODUCTORY SECTION a a a • aft a.a Oft a 1 CITY OF FRIDLEY. MINNESOTA ELECTED AND APPOINTED OFFICIALS DECEMBER 31. 1999 — ELECTED OFFICIALS Term of Office Expires December Mayor Nancy J.Jorgenson 2000 .. Councilmember At Large Robert R. Bamette 2000 Councilmember, Ward I Steven E. Billings 2002 Councilmember,Ward II Richard P. Wolfe 2002 Councilmember, Ward Ill Ann R. Bolkcom 2002 APPOINTED OFFICIALS City Manager William W. Burns 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 David H. Sallman Fire Chief Charles J. McKusick Director of Public Works John G. Flora Director of Recreation and Natural Resources Jack G. Kirk Director of Community Development Barbara J. Dacy Director of Human Resources Sara S. Hill a a a .. a 3 CITY ADMINISTRATIVE ORGANIZATIONAL STRUCTURE 1999 Total Authorized Postions(138) CITY MANAGER(4) City Manager Secretary to the City Manager –� Management Assistant Video specialist FINANCE(21) I I POLICE(49) I I HUMAN RESOURCES(2) Finance Director-Treasurer Public Safety Director- Human Resources Director Secretary Emergency Mamt Director HR Assistant Staff Accountant Secretary Accountant OPERATIONS(28) ACCOUNTING(7) Deputy Public Safety Director Assistant Finance Director (4) Sergeant General Accountant (2)Corporal Accounting Specialist (21) Patrol Officer Utility Billing Clerk (3)Acctg-Data Processing Clerk TECHNICAL SUPPORT(19) Lieutenant ASSESSING(2) Investigative Sergeant Assessor (2) Investigators Appraiser (2) Problem Response Team School Resource Officer — MIS(1) Projects Coordinator MIS Coordinator Crime Prevention Specialist Outreach Coordinator v. CITY CLERK- RECORDS(2) Office Supervisor City Clerk (5) Police Technicians Receptionist-License Clerk (3 of the 5 are job shared) ., CSO Coordinator LIQUOR(5) Narcotics Liquor Operations Manager Rental Housing NRO (2) Liquor Store Manager (1)Assistant Manager (1) Liquor Store Clerk I FIRE(7) I Fire Chief Secretary Dep Fire Chief (4) Firefighter 4 CITY ADMINISTRATIVE ORGANIZATIONAL STRUCTURE 1999 (cont) PUBLIC WORKS(38) RECREATION& COMMUNITY NATURALIST(8) DEVELOPMENT(9) Director of Public Works Secretary Director of Recreation& Director of Community Oper Analyst Natural Resources Development Recreation Office Coordinator Secretary ENGINEERING(4) Program Supervisor Assistant Public Works Director Program Specialist Engineering Tech Sr Citizen Prog Coord BUILDING INSPECTION (2) Engineering Tech Inspector Chief Building Official GIS Technician Secretary NATURALIST(3) PW MAINTENANCE(31) Natural Res.Coordinator PLANNING(5) Superintendant Interpretive Specialist Planning Coordinator Secretary Secretary (3) Planning Assistant Lead Mechanic Secretary (2) Mechanic, Level B Street Supervisor (8) Public Services Worker Water Supervisor (5) Public Services Worker Sewer Supervisor (4) Public Services Worker Park Supervisor (5) Public Services Worker 5 CITYOF FRIDLEY FRIDLEY MUNICIPAL CENTER•6431 UNIVERSITY AVE. N.E. FRIDLEY,MN 55432•(612)571-3450•FAX(612)571-1287 June 15, 2000 The Honorable Mayor and Members of the City Council City of Fridley Council Members: In accordance with the Charter, we hereby transmit the Comprehensive Annual Financial Report of the City of Fridley for the year ending December 31, 1999. The Report includes an excellent and comprehensive letter from Richard D. Pribyl, Director of Finance and Alan D. Folie, Assistant Finance Director, which provides a brief description of some of the activities in which the City is currently involved. Also highlighted in the letter are some of the more important financial management practices employed by the City's administrative staff. I would like to express my appreciation and commendation to them and the Finance Division staff for the manner in which the accounts are kept and the Report presented. I would also like to express appreciation for the commendable administrative financial management of the several departments and divisions by the respective department and division heads as revealed by this Report. Very truly yours, ,11,E 4J '4'44Y) . William W. Burns City Manager 7 CI1YOF FRIDLEY FRIDLEY MUNICIPAL CENTER•6431 UNIVERSITY AVE. N.E.FRIDLEY,MN 55432•(612)571-3450•FAX(612)571-1287 June 15,2000 Dr.William W. Bums, City Manager Mayor Nancy Jorgenson and Council Members Fridley, Minnesota 55432 Dear Dr. Bums, Mayor Jorgenson and Council Members: The Comprehensive Annual Financial Report of the City of Fridley, Minnesota, for the fiscal year ending December 31, 1999, is submitted herewith: The organization, form, and contents of this report were prepared in accordance with the standards prescribed by the Government Finance Officers Association of the United States and Canada, the American Institute of Certified Public Accountants, the Governmental Accounting Standards Board, and the Minnesota State Auditor's Office. The Government Finance Officers Association awards Certificates of Achievement for Excellence in Financial Reporting to those governments whose annual financial reports are judged to conform substantially with high standards of public financial reporting including generally accepted accounting principles promulgated by the Governmental Accounting Standards Board. The City of Fridley was awarded a Certificate of Achievement for Excellence in Financial Reporting for its annual financial report for the fiscal year 1998. It is our belief that the accompanying fiscal year 1999 financial report continues to meet program standards and it will be submitted to the Government Finance Officers Association for review. _. This report was prepared by the City's finance staff and consists of three sections: Section I is the introductory section and contains the table of contents, letter of transmittal, and other appropriate material. Section II is the financial section and contains the auditors' opinion, the combined financial statements, notes to the financial statements, combining statements, individual fund statements, and account group statements. Section III is the statistical section that includes the previous year's financial and non-financial data. 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. 9 CITY OF FRIDLEY,MINNESOTA a- The City's financial statements include all funds and account groups. Services provided by the City include police and fire protection; water and sanitary sewer utilities; the construction and maintenance of - streets and infrastructure; recreational activities and cultural events. In addition to general government activities, the activities of the Fridley Housing and Redevelopment Authority (HRA) have been included since they serve the entire City and the City Council has the ability to control the actions of the HRA. However, the Fridley School Districts and the Fridley Volunteer Firefighters Relief Association have not met the established criteria for inclusion in the reporting entity, and accordingly are excluded from this report. GENERAL INFORMATION BACKGROUND AND LOCATION The City of Fridley is an older metropolitan community with an estimated 1999 population of 28,623. The City is located just north of downtown Minneapolis and covers 11 square miles of area. The City was incorporated July 1, 1949 and is currently committed to redevelopment. With the help of the Housing and Redevelopment Authority, the City has been successful in attracting new industries as well as completing redevelopment projects. LOCAL ECONOMY The Minneapolis-St. Paul area economy has continued to be relatively stable over the last several years. Unemployment for Anoka County has ranged around 3% for the last several years with very little change. Fridley is home to the largest amount of employees in Anoka County. Approximately 22,000 employees work in over 800 businesses across Fridley. Long term growth in Fridley's economy will result from redevelopment projects which will create the opportunity for new construction. The City has averaged $37 million in building permit valuation over the last three years. The future economy of Fridley will be further bolstered by the construction of Medtronic Inc.'s World Headquarters. In 1999, Medtronic initiated construction of the 1,000,000 square foot corporate office space campus. Phase I is about 520,000 square feet. The estimated market value of the project will be well over$100 million. About 3,000 new employees are anticipated to work out of the new campus. The existing Medtronic campus will become the company's Cardiac Division headquarters. It is extremely unusual for a community of Fridley's size to have two corporate campuses within its borders. MAJOR INITIATIVES During 1999, the City continued its focus on the quality of the housing stock within the City and enjoyed continued success with the 5% home remodeling program. The Housing and Redevelopment Authority maintains this revolving loan fund for home remodeling loans. It is projected that the loan pool will "pay for itself" in fifteen years. With 1999 activity, 240 loans have been closed, totaling $3,007,181. In addition, 15 remodeling loans totaling $172,000 were provided to rental owners to improve apartment buildings since 1993. These programs help residents improve and maintain their properties. They also encourage residents to stay in Fridley by being able to improve their existing home instead of losing a resident to the outlying communities. The Housing and Redevelopment Authority has also sponsored five successful remodeling fairs and hired a part time "Remodeling Advisor" to assist homeowners with their remodeling ideas. In 1999, the Authority, in conjunction with 14 other metropolitan cities, published an award winning planbook entitled: "Cape Cods and Ramblers: A Remodeling Planbook for Post-WW II Houses. The planbook won the National League of Cities "Innovation Award" in 1999. 11 CITY OF FRIDLEY,MINNESOTA GENERAL INFORMATION (CONTINUED) An extensive amount of remodeling activity took place in Fridley in 1998, primarily as a result of a major storm. This activity continued into 1999, although to a lesser extent than 1998. Over 1,600 permits were issued for new windows, roofs, or new siding, which is two times the typical number of permits. The valuation for residential permit activity was also the highest in 10 years, totaling $15.4 million. This means a significant part of the City's housing stock was dramatically improved. The redevelopment of the Southwest Quadrant, an area bounded by University Avenue and Mississippi Street, began in 1995 with the HRA acquiring four apartment buildings and a number of businesses. Rottlund Homes was selected as the developer and has completed the construction of the 118 owner occupied units. All of the 118 units have been constructed and sold. In addition, a new senior housing facility, Banfill Crossing, was also constructed. It contains 108 one —, and two bedroom apartment units. About 40% of the units must be rented to households who have incomes below 60% of area median income. Since the City's warehouse liquor store was one of the businesses required to relocate as the Southwest Quadrant project moved forward, the City continued to search for potential sites for a new liquor store while the relocated store maintained its presence in the Holly Shopping Center. In 1999, the City executed a lease agreement with Lyndale Terminal Co. to lease 13,000 square feet within the Cub .. Foods facility on 57th Avenue and 1-694. Commercial and industrial activity continued to flourish, with a total valuation increase of $32.5 million. In the commercial category, Friendly Chevrolet expanded its facilities with a 22,000 square foot shop expansion. Holiday Station Stores opened two new facilities. In the industrial category, Sheet Metal Connectors expanded by 50,000 square feet, Toolcraft Inc. by 20,000 square feet, Alltemp Distribution, by 30,000 square feet, and Barole Trucking built two new buildings totaling 77,000 square feet. In addition to the Medtronic project, Cummins Power Generation and Murphy Warehouse teamed up to build a 406,000 square foot warehouse facility on the existing Cummins Campus on 73`d Avenue. The parcel was part of a partial contamination cleanup previously conducted by the previous owner, Boise .. Cascade. In order to make this parcel buildable, the developer obtained pollution cleanup funds from the Department of Trade and Economic Development and the Metropolitan Council's Tax Base Revitalization Fund. The $960,000 of grant assistance was required to make the parcel buildable. The project will create$500,000 per year in annual taxes. Both the Medtronic and the Cummins project received awards from City Business for "Best in Real Estate in 1999" in their respective categories (Corporate Office and Industrial). Internally, the 2000 budget work sessions were relatively free from major budgetary issues. The gap between revenues and expenditures widened in the 2000 budget from the 1999 budget. Much of the discussion at the work sessions focused on addressing this widening gap. The budget sessions ended ., with no increase in property taxes and the planned use of$1,123,365 of reserves resulting in a balanced 2000 budget that Council adopted in December. PLANS FOR THE FUTURE The future of the City of Fridley, like all units of government is filled with change and restructuring. The federal deficit and changes in state revenue have and will continue to have a trickle down effect to lower levels. Cities are faced with the problems of financing their own traditional levels of service while simultaneously coping with cuts in intergovernmental revenues and the implementation of both federal and state mandates. The City applauds the efforts of the Minnesota State Legislature in their attempt to curtail unfunded state mandates. The City will continue to investigate new funding and cost sharing alternatives as well as reviewing our operations in order to decrease the reliance on intergovernmental revenues. 12 CITY OF FRIDLEY,MINNESOTA GENERAL INFORMATION (CONTINUED) Implementation of an imaging system continued during 1999. This project will increase the availability of data and the efficiency in which City staff can access it and respond to resident's requests. The most significant project in the City's history was approved in early 1999. Medtronic, Inc.will build its world headquarters at the Fridley Executive Center site at the northwest corner of T.H. 65 and 1-694. First phase construction began in June 1999 on 520,000 square feet of development. Ultimately, the site may be developed up to 1.6 million square feet, and at minimum, 1 million square feet of corporate office space is planned. The first phase (estimated value at $46 million) will consist of five buildings. The centerpiece of the development will be the corporate headquarters office, which will be flanked by two additional buildings, the Research Center and the Education Center. The fourth building will be the headquarters for the Neurological Division of the company. Finally, the fifth building will house the support functions of the development including the employee cafeteria, resource center, auditorium and fitness center. Multi-level parking ramps are necessary to provide adequate parking for the campus. The ramps for the first phase will be six levels(two below grade)and will contain about 1,000 parking spaces. Medtronic anticipates that the project,when fully developed, will create 3,000 new jobs. Significant projects budgeted for 2000 in the five year capital improvement plan include: The remodeling of the Municipal Center's reception area; upgrading picnic tables and park benches in City parks; a major street reconstruction project on some of the streets bordering the Melody Manor neighborhood; 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. 13 CITY OF FRIDLEY,MINNESOTA zti FINANCIAL INFORMATION (CONTINUED) 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 which 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 5.1%to 6.5%. DEBT ADMINISTRATION Net general bonded debt per capita and the percentage of the net general bonded debt to taxable value are useful indicators of the City's debt position. At December 31, 1999 the City of Fridley's debt service funds provided sufficient capital to cover the net general bonded debt. The City has numerous debt issues outstanding totaling $20,080,000. Of this outstanding debt, $1,070,000 represents special assessment debt with government commitment, $13,685,000 represents general obligation tax increment refunding bonds, $5,325,000 represents general obligation water, .. sewer and storm water revenue bonds. The City of Fridley has, since 1982, maintained a credit rating of Aa1 on its long-term bonds. FISCAL DISPARITIES The commonly referred to "Fiscal Disparity Law" was adopted by the Legislature in 1971. The area of .g the fiscal disparity district encompasses all the properties located within the seven-county metropolitan area. The law provides that 40% of all new commercial/industrial property valuations or growth be placed in an area wide"pool,"and shared according to specific criteria. TAX INCREMENT DISTRICTS The City Council took action on May 7, 1979 to form the first of twelve tax increment districts. In 1985, the individual districts were combined into one redevelopment district to more easily manage the overall activities. All of the districts have been established in economically depressed areas within the City. With the successful relationship that the City and the Housing and Redevelopment Authority have developed, many benefits have been derived. -� a 14 CITY OF FRIDLEY,MINNESOTA FINANCIAL INFORMATION (CONTINUED) GENERAL GOVERNMENT FUNCTIONS The following schedule presents a summary of the General, Special Revenue, Debt Service, Capital Projects and Expendable Trust Funds' revenues for the fiscal year ended December 31, 1999. The most significant changes in revenues from the prior year were decreases in charges for services, investment income, and miscellaneous. Charges for services decreased by$222,729 mainly due to the closing of the City's recycling center in 1999. Investment income decreased by $474,847 due to rising interest rates in 1999 and the associated decline in value of securities with longer maturities. The miscellaneous decrease of $47,851 was due primarily to the decline in donations for the Fridley Community Center. Percent of Increase/ Revenues Amount Total (Decrease) Taxes and special assessments $4,475,051 33.00% ($45,633) Licenses and permits 937,084 6.91% 90,939 Intergovernmental 5,417,384 39.95% (186,292) Charges for services 1,291,819 9.53% (222,729) Fines and forfeits 195,798 1.45% (6,934) Investment income 803,768 5.93% (474,847) Miscellaneous 437,815 3.23% (47,851) Total $13,558,719 100.00% ($893,347) The following schedule presents a summary of the General, Special Revenue, Debt Service, Capital Projects and Expendable Trust Funds' expenditures for the fiscal year ended December 31, 1999. The most significant changes in expenditures from the prior year were in the municipal center and debt service categories. The increase in municipal center is primarily due to higher maintenance costs. The decrease in debt service is due to 1998 being unusually high due to the refunding of a bond issue. Percent of Increase/ Expenditures Amount Total (Decrease) Current: General $2,585,352 15.72% $236 Public safety 4,243,682 25.81% 145,634 Municipal center 235,308 1.43% 29,827 Public works 2,879,627 17.51% 53,090 Community development 721,120 4.39% 72,281 Recreation and naturalist 996,584 6.06% 94,423 Debt service 1,029,680 6.27% (4,112,186) Capital outlay 3,753,581 22.81% 346,264 Total $16,444,934 100.00% (3,370,431) 15 CITY OF FRIDLEY,MINNESOTA FINANCIAL INFORMATION (CONTINUED) General Fund Balance .., The fund balance is used to provide working capital for the fund until tax settlements and state aids are received in July and December of each year, to provide funds for unknown events which could have an adverse effect on the fund, and to help finance future budgets. In 1990 the City Council adopted a -- formal policy designating portions of the general fund's fund balance for working capital, subsequent year's expenditures, contingencies and for replacement of fixed assets at the end of each fiscal year. ENTERPRISE OPERATIONS The Enterprise Funds account for the financing of services to the general public in which all or most of the costs involved are paid in the form of charges by the users of such services. In the City of Fridley, Enterprise Funds are used to account for the operation of the public utility system and three municipal liquor stores. Except for ownership, Enterprise Funds bear a close resemblance to privately owned utility or service enterprises. Liquor Fund The Liquor Fund was established to account for the operation and financing of the City-owned municipal liquor stores. The City operates three liquor stores, one at 6289 Highway 65, one next to Cub Foods, and the other in the Holly Shopping Center. The City owns the store at the Highway 65 location and currently leases space for the other two stores. In 1984, the City changed its sales philosophy to the wholesale approach so that we could remain competitive with the three neighboring communities that •-• use wholesale pricing. Retained earnings of the Liquor Fund were $1,956,940 on December 31, 1999 as compared to $1,919,315 at the closing of the prior fiscal year. Income before operating transfers decreased from $266,980 in 1998 to $207,625 in 1999. This decrease is primarily due to the expense involved in opening a third store. r` Public Utilities Fund This fund accounts for the operation and financing of the City-owned sewer and water systems. Included in the assets of the fund is a receivable from the Metropolitan Council Environmental Service Division of $25,915 representing the City's share of the equity in the Minneapolis Sewer System that was acquired by the Metropolitan Council on January 1, 1971. The assets for the Water and Sewer Distribution system, originally financed by special assessments, were transferred from General Fixed Assets to the Public Utilities Fund in 1978. Additional Fixed Assets were transferred in 1979, 1984, 1989, 1990, 1991, 1992, 1993, 1994 and 1995. Those improvements to the utility system paid for or financed directly by the Public Utilities Fund have always been carried in the Public Utilities Fund and depreciated. Retained earnings on December 31, 1999 were $14,175,791 compared to$13,954,194 at the close of the prior fiscal year. 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 which 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. Beginning in 1999, the City began self insuring for the health care coverage for City employees. The City and its employees contribute into the Self Insurance Fund and claims are paid out to a third party administrator which handles the paperwork. An insurance policy purchased out of this fund, kicks in when claims for an •- individual exceed $15,000 during a twelve-month period. .r. 16 CITY OF FRIDLEY,MINNESOTA OTHER INFORMATION PENSIONS City of Fridley employees are covered by one of four 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) The basic Public Employees Retirement Plan, which covers certain other City civilian employees. 4) Coordinated Public Employees Retirement Plan, which covers certain other City civilian employees. The employees covered by the Coordinated P.E.R.A. 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 Department of the State of Minnesota. This requirement has been complied with and the opinion of HLB Tautges Redpath, Ltd. is included in 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 December 31, 1998. 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. 17 CITY OF FRIDLEY,MINNESOTA OTHER INFORMATION (CONTINUED) 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, Julie Vogel, 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, Pci-eti �• Richard D. Pribyl Alan D. Folie Finance Director Assistant Finance Director MEM 18 _ 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, 1998 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 financial reporting. NEE OFFj EY`��4✓ C 2(UNITED STATES lqn yr car�uon President CHICAGO j�`� Executive Director 19 MON FINANCIAL SECTION MINS 21 AUDITOR'S OPINION • 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 general purpose fmancial statements of the City of Fridley, Minnesota, as of and for the year ended December 31, 1999 as listed in the table of contents. These general purpose financial statements are the responsibility of the City of - Fridley,Minnesota's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. - We conducted our audit in accordance with generally accepted auditing standards 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 general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion,the general purpose financial statements referred to above present fairly, in all material respects,the financial position of the City of Fridley, Minnesota, as of December 31, 1999, and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards,we have also issued a report dated May 10, 2000 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 grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. 4810 White Bear Parkway,White Bear Lake, Minnesota 55110, USA Telephone: 651 426 7000 Fax: 651 426 5004 HLB Tautges Redpath,Ltd.is a member of ills International. A world-wide organization of23ounting firms and business advisers. Our audit was performed for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund and account group financial statements, supporting schedules and statistical information as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose fmancial statements of the City of Fridley,Minnesota. Such information, except for that portion marked"unaudited," on which we express no opinion,has been subjected to the auditing procedures applied in the audit of the general purpose fmancial statements and, in our opinion, is fairly stated in all material respects, in relation to the general purpose fmancial statements taken as a whole. May 10, 2000 �a T7 GA 1. HLB TAUTGES REDPATH, LTD. Certified Public Accountants a ._ 25 COMBINED FINANCIAL STATEMENTS The combined statements are intended to provide an overview and broad perspective of the City's financial position and operations.These statements present a summary set of information needed to control and analyze current operations to determine compliance with legal and budgetary limitations and to assist in financial planning.The following combined statements are presented: Combined Balance Sheet —All Fund Types and Account Groups and Discretely Presented Component Units Combined Statement of Revenues, Expenditures, and Changes in Fund Balances — All Governmental Fund Types and Expendable Trust Funds and Discretely Presented Component Units Combined Statement of Revenues, Expenditures, and Changes in Fund Balances— Budget and Actual — General, Special Revenue Fund and Budgeted Capital Project Types Combined Statement of Revenues, Expenses and Changes in Retained Earnings — All Proprietary Fund Types Combined Statement of Cash Flows—All Proprietary Fund Types Exhibit A-1 "" Page 1 of 4 CITY OF FRIDLEY, MINNESOTA COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS .- AND DISCRETELY PRESENTED COMPONENT UNITS December 31, 1999 Governmental Fund Types Special Debt Capital _ General Revenue Service Projects .. Assets Cash and investments $6,858,487 $1,094,908 $8,680,329 $5,055,149 .. Receivables: Accounts 62,832 53,591 - 3,039 Taxes 101,621 - - 2,418 Special assessments 11,950 - 1,258,435 74,861 Mortgage - - - - Interest 343,961 - - - Loan receivable 6,300 - - - — Loan receivable from component unit - - 805,410 - Developer note 85,776 - - - Due from other funds 131,154 - 204,958 743,582 _ Interfund loan receivable - - - - Due from component unit - - - - Due from other governments 48,226 418,709 71,667 - Inventories, at cost 36,432 - - - - Prepaid items - - - - Long term receivable - - - - Property and equipment (Net of depreciation) - - - - Amount available in debt service fund - - - - Amount to be provided for retirement of general long term debt - - - - _ Total assets $7,686,739 $1,567,208 $11,020,799 $5,879,049 .. a See Accompanying Notes to Financial Statements .. 29 CITY OF FRIDLEY, MINNESOTA COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS — December 31, 1999 Fiduciary Proprietary Fund Types Fund Types Internal Trust and Enterprise Service Agency Assets — Cash and investments $9,058,842 $3,879,392 $41,819 Receivables: -- Accounts 1,342,413 1,698 2,926 Taxes - - 315 Special assessments 173,700 - - — Mortgage - - - Interest 21,483 - - Loan receivable - - - Loan receivable from component unit - - - --• Developer note - - - Due from other funds 899 - - Interfund loan receivable - - - Due from component unit - - - Due from other governments 28,992 26 - Inventories, at cost 754,339 - - Prepaid items 186,248 - - — Long term receivable - - - Property and equipment (Net of depreciation) 21,360,205 211,390 - Amount available in debt service fund - - - Amount to be provided for retirement of general long term debt - - - Total assets $32,927,121 $4,092,506 $45,060 See Accompanying Notes to Financial Statements 30 - Exhibit A-1 Page 2 of 4 - Account Groups Totals Primary Government Component Totals Reporting Entity General General Long (Memorandum Only) Unit (Memorandum Only) Fixed Assets Term Debt 1999 1998 HRA 1999 1998 a $ - $ - $34,668,926 $36,565,295 $8,279,941 $42,948,867 $46,152,361 - - - 1,466,499 1,973,425 - 1,466,499 1,973,425 - - 104,354 256,828 106,932 211,286 528,516 - - 1,518,946 1,650,402 - 1,518,946 1,650,402 - - - - - 2,639,371 2,639,371 2,784,956 - - 365,444 292,955 123,232 488,676 349,571 - - 6,300 6,300 - 6,300 6,300 - - - 805,410 1,394,917 - 805,410 1,394,917 - - 85,776 96,004 - 85,776 96,004 - - 1,080,593 1,159,910 3,541,973 4,622,566 4,539,791 - - - - 939,775 939,775 13,184,622 - - - 1,301 - - 1,301 - - 567,620 699,467 941,791 1,509,411 699,467 - - 790,771 350,754 - 790,771 350,754 - - - 186,248 250,492 - 186,248 250,492 - - - 25,915 - - 25,915 39,647,657 - 61,219,252 58,079,824 - 61,219,252 58,079,824 - 9,467,255 9,467,255 9,681,268 - 9,467,255 10,141,268 - 5,287,745 5,287,745 5,368,732 - 5,287,745 5,368,732 - $39,647,657 $14,755,000 $117,621,139 $117,853,789 $16,573,015 $134,194,154 $147,578,618 a a See Accompanying Notes to Financial Statements a 31 Exhibit A-1 Page 3 of 4 — CITY OF FRIDLEY, MINNESOTA COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS ._ December 31, 1999 Governmental Fund Types Special Debt Capital General Revenue Service Projects Liabilities,fund equity and other credits Liabilities Accounts payable $184,213 $35,045 $3,232 $7,632 Deposits payable 51,955 10,219 - - Contracts payable - - - 62,751 Interfund loan payable - - - - — Salaries payable 301,023 12,980 - - Compensated absences payable - - - - Deferred revenue 44,577 39,414 1,252,091 75,530 — Due to other funds 805 131,153 204,958 743,383 Due to primary government - - - - Due to component unit - 848,528 93,263 - Due to other governments 27,935 305 - 7,500 . Bonds payable - - - - Loan payable to primary government - - - - Accrued interest payable - - - - Totalliabilities 610,508 1,077,644 1,553,544 896,796 Fund equity and other credits Contributed capital - - - - Investment in general fixed assets - - - - Retained earnings: ... Reserved - - - - Unreserved - - - - Fund balance: Reserved 130,998 - 1,535,867 336,559 .— Unreserved: Designated 6,945,233 368,549 - 4,974,502 Undesignated - 121,015 7,931,388 (328,808) -- Total fund equity and other credits 7,076,231 489,564 9,467,255 4,982,253 Total liabilities,fund equity and other credits $7,686,739 $1,567,208 $11,020,799 $5,879,049 — See Accompanying Notes to Financial Statements a 33 CITY OF FRIDLEY, MINNESOTA COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNITS December 31, 1999 Fiduciary Proprietary Fund Types Fund Types Internal Trust and Enterprise Service Agency Liabilities,fund equity and other credits ~ Liabilities Accounts payable $380,763 $70,416 $ - Deposits payable - - 12,591 Contracts payable 87,601 - - Interfund loan payable - - - Salaries payable 43,774 62,665 - ... Compensated absences payable - 838,866 - Deferred revenue - - 201 Due to other funds 94 - 200 Due to primary government - - - Due to component unit - - - Due to other governments 63,481 - 14,394 Bonds payable 5,304,849 - - --r Loan payable to primary government - - - Accrued interest payable 116,188 - - Total liabilities 5,996,750 971,947 27,386 — Fund equity and other credits Contributed capital 10,797,640 1,830,850 - Investment in general fixed assets - - - Retained earnings: Reserved 2,249,000 211,382 - Unreserved 13,883,731 1,078,327 - Fund balance: Reserved - - - Unreserved: Designated - - - Undesignated - - 17,674 Total fund equity and other credits 26,930,371 3,120,559 17,674 — Total liabilities,fund equity and other credits $32,927,121 $4,092,506 $45,060 See Accompanying Notes to Financial Statements 34 Exhibit A-1 Page 4 of 4 Account Groups Totals Primary Government Component Totals Reporting Entity ` General General Long (Memorandum Only) Unit (Memorandum Only) Fixed Assets Term Debt 1999 1998 HRA 1999 1998 $ - $ - $681,301 $575,424 $506,753 $1,188,054 $613,609 - - 74,765 34,015 29,250 104,015 60,765 - - 150,352 57,627 - 150,352 57,627 - - - - 939,775 939,775 13,184,622 - - - 420,442 356,422 9,783 430,225 363,402 - - 838,866 842,050 - 838,866 842,050 - - 1,411,813 1,551,244 90,348 1,502,161 1,618,121 _ - - 1,080,593 1,159,910 3,541,973 4,622,566 4,539,791 - - - - 107,646 107,646 1,300 - - 941,791 - - 941,791 - - - 113,615 809,021 - 113,615 951,285 - - 14,755,000 20,059,849 20,652,919 - 20,059,849 21,112,919 - - - - 805,410 805,410 1,394,917 - - 116,188 122,162 - 116,188 122,162 4 0 14,755,000 25,889,575 26,160,794 6,030,938 31,920,513 44,862,570 - - 12,628,490 13,012,535 - 12,628,490 13,012,535 39,647,657 - 39,647,657 36,950,041 - 39,647,657 36,950,041 ... - - 2,460,382 2,755,933 - 2,460,382 2,755,933 - - 14,962,058 14,341,245 - 14,962,058 14,341,245 - - 2,003,424 3,541,700 2,771,866 4,775,290 3,541,700 _ - - 12,288,284 14,736,808 - 12,288,284 17,620,764 - - 7,741,269 6,354,733 7,770,211 15,511,480 14,493,830 39,647,657 0 91,731,564 91,692,995 10,542,077 102,273,641 102,716,048 $39,647,657 $14,755,000 $117,621,139 $117,853,789 $16,573,015 $134,194,154 $147,578,618 See Accompanying Notes to Financial Statements 35 CITY OF FRIDLEY, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS AND DISCRETELY PRESENTED COMPONENT UNITS .. Year Ended December 31, 1999 Governmental Fund Types - Special Debt Capital General Revenue Service Projects Revenues: Taxes $3,975,124 $ - $ - $73,100 Special assessments 10,249 - 396,385 20,193 Licenses and permits 793,444 143,640 - - Intergovernmental revenue 3,323,400 1,380,075 - 713,909 Charges for services 1,079,696 212,123 - - Fines and forfeits 172,399 23,399 - - Investment income 292,631 8,482 276,793 224,756 _ Miscellaneous 254,648 9,330 68,826 105,011 Total revenues 9,901,591 1,777,049 742,004 1,136,969 Expenditures: Current: General government 1,829,838 746,668 - - Public safety 4,189,882 53,800 - - Municipal center 235,308 - - - Public works 2,510,359 - - 369,268 Community development 721,120 - - - Recreation and naturalist 994,354 2,230 - - - Debt service - - 1,029,680 - Capital outlay 451,509 153,156 - 3,148,916 Total expenditures 10,932,370 955,854 1,029,680 3,518,184 �w Excess (deficiency)of revenues over(under)expenditures (1,030,779) 821,195 (287,676) (2,381,215) Other financing sources (uses): Bond proceeds - - - - Sale of fixed assets 21,279 - - - Operating transfers in 402,900 60,251 - 3,503,467 - Operating transfers out - - (574,537) (2,927,081) Operating transfers from component unit - - 741,463 - Operating transfers to component unit - (848,528) (93,263) - Operating transfers from primary government - - - - - Operating transfers to primary government - - - - Total other financing sources(uses) 424,179 (788,277) 73,663 576,386 Excess(deficiency)of revenues and other financing "' sources over(under)expenditures and other financing uses (606,600) 32,918 (214,013) (1,804,829) Fund balance-January 1 7,682,831 456,646 9,681,268 6,787,082 Fund balance- December 31 $7,076,231 $489,564 $9,467,255 $4,982,253 See Accompanying Notes to Financial Statements 36 Exhibit A-2 - Fiduciary - Fund Type Totals Primary Government Component Totals Reporting Entity Expendable (Memorandum Only) Unit (Memorandum Only) Trust 1999 1998 HRA 1999 1998 - $ - $4,048,224 $4,080,277 $3,052,417 $7,100,641 $7,088,739 - 426,827 440,407 - 426,827 440,407 - 937,084 846,145 - 937,084 846,145 - - 5,417,384 5,603,676 - 5,417,384 5,603,676 - 1,291,819 1,514,548 - 1,291,819 1,514,548 - 195,798 202,732 - 195,798 202,732 - 1,106 803,768 1,278,615 360,495 1,164,263 1,847,588 - 437,815 485,666 259,272 697,087 770,523 1,106 13,558,719 14,452,066 3,672,184 17,230,903 18,314,358 8,846 2,585,352 2,585,116 1,300,931 3,886,283 3,416,996 - 4,243,682 4,098,048 - 4,243,682 4,098,048 - 235,308 205,481 - 235,308 205,481 - 2,879,627 2,826,537 - 2,879,627 2,826,537 - 721,120 648,839 - 721,120 648,839 - - 996,584 902,161 - 996,584 902,161 - 1,029,680 5,141,866 550,034 1,579,714 5,622,451 - 3,753,581 3,407,317 2,502,523 6,256,104 4,507,081 8,846 16,444,934 19,815,365 4,353,488 20,798,422 22,227,594 - (7,740) (2,886,215) (5,363,299) (681,304) (3,567,519) (3,913,236) - - 4,160,329 - - 4,160,329 21,279 38,912 - 21,279 38,912 - - - 3,966,618 2,018,529 11,599,580 15,566,198 23,875,696 (3,501,618) (1,877,029) (11,599,580) (15,101,198) (23,734,196) - - 741,463 722,860 - 741,463 722,860 (941,791) (84,955) - (941,791) (84,955) - -- - - - 941,791 941,791 84,955 - - (741,463) (741,463) (722,860) 0 285,951 4,978,646 200,328 486,279 4,340,741 (7,740) (2,600,264) (384,653) (480,976) (3,081,240) 427,505 25,414 24,633,241 25,017,894 11,023,053 35,656,294 35,228,789 $17,674 $22,032,977 $24,633,241 $10,542,077 $32,575,054 $35,656,294 See Accompanying Notes to Financial Statements "' 37 CITY OF FRIDLEY, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL GENERAL,SPECIAL REVENUE AND BUDGETED CAPITAL PROJECTS FUND TYPES Year Ended December 31, 1999 General Special Revenue Funds -• Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable; Revenues: Taxes $3,879,583 $3,975,124 $95,541 $ - $ - $ - Special assessments 2,588 10,249 7,661 - - - Licenses and permits 653,324 793,444 140,120 97,041 143,640 46,599 Intergovernmental revenue 3,333,195 3,323,400 (9,795) 1,413,119 1,380,075 (33,044) Charges for services 1,197,770 1,079,696 (118,074) 195,000 212,123 17,123 Fines and forfeits 181,589 172,399 (9,190) 23,399 23,399 - Investment income 435,000 292,631 (142,369) 10,933 8,482 (2,451) - Miscellaneous 159,177 254,648 95,471 5,087 9,330 4,243 Total revenues 9,842,226 9,901,591 59,365 1,744,579 1,777,049 32,470 Expenditures: ,^ Current: General government 1,923,841 1,829,838 94,003 848,528 746,668 101,860 Public safety 4,242,536 4,189,882 52,654 53,800 53,800 - Municipal center 235,308 235,308 - - - - -, Public works 2,531,849 2,510,359 21,490 - - - Community development 721,120 721,120 - - - - Recreation and naturalist 1,035,450 994,354 41,096 2,230 2,230 - Capital outlay 474,710 451,509 23,201 217,228 153,156 64,072 Total expenditures 11,164,814 10,932,370 232,444 1,121,786 955,854 165,932 Excess(deficiency)of revenues over(under)expenditures (1,322,588) (1,030,779) 291,809 622,793 821,195 198,402 Other financing sources(uses): Sale of fixed assets 15,000 21,279 6,279 - - - Operating transfers in 402,900 402,900 - 60,251 60,251 - Operating transfers out - - - - - - Operating transfer to component unit - - - (848,528) (848,528) - Total other financing sources(uses) 417,900 424,179 6,279 (788,277) (788,277) 0 .. Excess(deficiency)of revenues and other financing sources over(under) expenditures and other financing --+ uses ($904,688) (606,600) $298,088 ($165,484) 32,918 $198,402 Fund balance-January 1 7,682,831 456,646 Fund balance-December 31 $7,076,231 $489,564 r.. See Accompanying Notes to Financial Statements 38 Exhibit A-3 r Totals Budgeted Capital Projects Funds (Memorandum Only) Variance Variance Favorable Favorable 1998 Budget Actual (Unfavorable) Budget Actual (Unfavorable) Actual - $70,550 $73,100 $2,550 $3,950,133 $4,048,224 $98,091 $4,080,277 - 1,509 1,509 2,588 11,758 9,170 5,871 - - - - 750,365 937,084 186,719 846,145 280,464 350,349 69,885 5,026,778 5,053,824 27,046 5,588,283 - - 1,392,770 1,291,819 (100,951) 1,514,548 - - - 204,988 195,798 (9,190) 202,732 417,225 219,968 (197,257) 863,158 521,081 (342,077) 772,587 - - - 164,264 263,978 99,714 382,511 768,239 644,926 (123,313) 12,355,044 12,323,566 (31,478) 13,392,954 - - - 2,772,369 2,576,506 195,863 2,585,116 - - - 4,296,336 4,243,682 52,654 4,098,048 - - - - 235,308 235,308 - 205,481 50,000 46,273 3,727 2,581,849 2,556,632 25,217 2,265,385 - - 721,120 721,120 - 648,839 - - - 1,037,680 996,584 41,096 902,161 1,026,356 582,261 444,095 1,718,294 1,186,926 531,368 1,327,904 1,076,356 628,534 447,822 13,362,956 12,516,758 846,198 12,032,934 - (308,117) 16,392 324,509 (1,007,912) (193,192) 814,720 1,360,020 - - 15,000 21,279 6,279 38,912 "" - - - 463,151 463,151 - 624,402 (2,937,504) (2,927,081) 10,423 (2,937,504) (2,927,081) 10,423 (1,394,127) - - - (848,528) (848,528) - - (2,937,504) (2,927,081) 10,423 (3,307,881) (3,291,179) 16,702 (730,813) ($3,245,621) (2,910,689) $334,932 ($4,315,793) (3,484,371) $831,422 629,207 - 8,221,750 16,361,227 15,732,020 $5,311,061 $12,876,856 $16,361,227 r See Accompanying Notes to Financial Statements 39 Exhibit A-4 CITY OF FRIDLEY, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS-ALL PROPRIETARY FUND TYPES Year Ended December 31, 1999 - Proprietary Fund Types Totals Internal (Memorandum Only) Sales and cost of sales: Enterprise Service 1999 1998 Sales $3,686,984 $ - $3,686,984 $3,219,049 Cost of sales 2,905,867 - 2,905,867 2,555,072 Gross profit 781,117 0 781,117 663,977 Operating revenues: Water sales and sewer rents 5,389,003 - 5,389,003 6,512,163 Other - - - 8,785 Charges for services - 292,031 292,031 98,697 Total operating revenues 5,389,003 292,031 5,681,034 6,619,645 Operating expenses: Personal services 1,403,675 14,854 1,418,529 1,265,973 Supplies and other charges 3,541,607 248,189 3,789,796 4,109,659 Depreciation 910,783 100,611 1,011,394 978,940 Total operating expenses 5,856,065 363,654 6,219,719 6,354,572 - Operating income(loss) 314,055 (71,623) 242,432 929,050 Nonoperating revenues(expenses): Intergovernmental revenue - - - 124,441 Investment income 309,955 123,683 433,638 640,845 Debt service (283,058) - (283,058) (306,481) Special assessments 16,375 - 16,375 68,943 - Loss on disposal of fixed assets (22,055) - (22,055) - Other revenues 18,885 - 18,885 - Total nonoperating revenues (expenses) 40,102 123,683 163,785 527,748 -» Income before operating transfers 354,157 52,060 406,217 1,456,798 Operating transfers: Operating transfer out (465,000) - (465,000) (141,500) Net income(loss) (110,843) 52,060 (58,783) 1,315,298 Credit arising from transfer of depreciation on contributed capital 370,065 13,980 384,045 395,708 Retained earnings-January 1 15,873,509 1,223,669 17,097,178 15,386,172 - Retained earnings- December 31 $16,132,731 $1,289,709 $17,422,440 $17,097,178 See Accompanying Notes to Financial Statements 40 Exhibit A-5 "" CITY OF FRIDLEY. MINNESOTA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES Year Ended December 31, 1999 Proprietary Fund Types Totals Internal (Memorandum Only) Enterprise Service 1999 1998 -- Cash flows from operating activities: Operating income(loss) $315,055 ($71,623) $243,432 $929,050 1 Adjustments to reconcile operating income(loss)to net cash flows from operating activities: -.. Depreciation 910,783 100,611 1,011,394 978,940 Loss on sale of fixed assets 22,055 - 22,055 256,805 Change in assets and liabilities: - Decrease(increase)in receivables 526,805 (1,698) 525,107 82,002 Decrease(increase)in due from other funds 427 - 427 3 Decrease(increase)in due from other governments 199,822 (26) 199,796 25,608 Decrease(increase)in inventories (450,387) - (450,387) (33,854) ._ Decrease(increase)in prepaid items 64,244 - 64,244 26,314 Increase(decrease)in payables 266,682 47,175 313,857 (92,698) Net cash flows from operating activities 1,855,486 74,439 1,929,925 2,172,170 Cash flows from noncapital financing activities: Intergovernmental revenue - - - 124,441 Operating transfers out (465,000) - (465,000) (141,500) "" Special assessment collections 16,375 - 16,375 68,943 Other revenues 18,885 - 18,885 - Net cash flows from noncapital financing activities (429,740) 0 (429,740) 51,884 Cash flows from capital and related financing activities: Acquisition and construction of fixed assets (1,353,789) (143,527) (1,497,316) (906,625) Proceeds from sale of revenue bonds - - - 1,171,191 - Prinicipal paid on revenue bonds (298,070) - (298,070) (260,000) Interest and paying agent fees on revenue bonds (283,058) - (283,058) (306,481) Net cash flows from capital and related financing activities (1,934,917) (143,527) (2,078,444) (301,915) Cash flows from investing activities: Investment income 309,955 123,683 433,638 640,845 Net increase(decrease)in cash and cash equivalents (199,216) 54,595 (144,621) 2,562,984 Cash and cash equivalents-January 1 9,259,058 3,824,797 13,083,855 10,520,871 Cash and cash equivalents-December 31 $9,059,842 $3,879,392 $12,939,234 $13,083,855 - See Accompanying Notes to Financial Statements - 41 NOTES TO FINANCIAL STATEMENTS ■ –a ... CITY OF FRIDLEY. MINNESOTA - NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 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 accounting policies of the City of Fridley conform to generally accepted accounting policies applicable to governmental units. The following is a summary of the more significant policies: A. Principles used in the determination of the scope of the Governmental entity The City has implemented Government Accounting Standards Boards Statement 14, The Financial Reporting Entity. As required by Statement 14, these financial statements present the City and its component units. The component unit discussed below is included in the reporting entity because of the significance of their operation and financial relationship with the City. — 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. Complete financial statements of the HRA may be obtained from William W. Burns, Executive Director, 6431 University Avenue NE, Fridley, Minnesota 55432. — The following governmental entities are not included in these financial statements since they do not meet the criteria contained in Statement 14: Independent School District #11/Independent School District #13/Independent School District#14/Independent School District#16-These four school districts either reside wholly within the City of Fridley or overlap within the City boundaries. According to Minnesota State Statutes, Minnesota school districts are totally independent of all other governing jurisdictions. The City has no authority to appoint board members and has no fiscal responsibility. School districts are able to levy taxes and issue debt in their own name. Fridley Volunteer Firefighters Relief Association - This association is organized as a — nonprofit organization by its members to provide pension and other benefits to such members in accordance with Minnesota Statutes. The board of directors is elected by the membership of the Association. All funding is conducted in accordance with Minnesota Statutes, whereby state aids flow to the association,tax levies are determined by the association and is only reviewed by the City. The association pays benefits directly to its members. The association may certify tax levies to the County directly if the City does not carry out this function. Because the association is able to fund its program independently of the City, it is excluded from these financial statements. (See Note 9 for disclosures relating to the pension plan operated by this organization.) 43 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 1999 B. Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in -• the financial statements in this report, into seven generic fund types and three broad categories as follows: GOVERNMENTAL FUNDS Governmental funds include the general fund, special revenue funds, debt service funds and capital projects funds. The governmental fund measurement focus is based upon the determination of financial position and changes in financial position (sources, uses and balances of financial resources rather than upon net income determination). These funds are maintained on the modified accrual basis of accounting (explained further under Significant Accounting Policies). -=1 General Fund - The General Fund is the primary operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of certain specific revenue sources that are restricted to expenditures for specified purposes. Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. Capital Projects Funds -Capital Projects Funds are used for the acquisition or construction of major capital facilities other than those financed by proprietary funds. PROPRIETARY FUNDS Proprietary funds include enterprise funds and internal service funds. The proprietary fund measurement focus is based upon the determination of net income, financial position and changes in financial position. The generally accepted accounting principles here are those _, applicable to similar businesses in the private sector and thus these funds are maintained on the accrual basis of accounting. Enterprise Funds - Enterprise Funds are used to account for operations that are financed and -- operated in a manner similar to private business enterprises -where the intent is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City on a cost- reimbursement basis. 44 ,. .. CITY OF FRIDLEY, MINNESOTA •■ NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 FIDUCIARY FUNDS Fiduciary funds include expendable trust and agency funds. The measurement focus of the expendable trust funds is the same as governmental funds and is, therefore, maintained on the modified accrual basis of accounting. Trust Fund-The Trust Fund is used to account for assets held by the City in a trustee capacity for individuals, private organizations, other governments, and/or all other funds. The City's Trust Fund is classified as an Expendable Trust Fund and is accounted for in essentially the same manner as governmental funds. Agency Funds - Agency Funds are clearing type funds for the collection of taxes or deposits held in trust, on behalf of individuals, private organizations and other governments. The funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of ,^ operation. C. Measurement Focus The accounting and reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable trust funds are accounted for on a spending or "current financial resources" measurement focus. This means that only current assets and "' current liabilities are generally included on the balance sheets. (Their reported fund balance is considered a measure of "available spendable resources.") Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of"available spendable resources"during a period. Fixed assets used in governmental fund type operations (general fixed assets) are recorded at historical costs and accounted for in the General Fixed Assets Account Group. Public domain ("infrastructure") general fixed assets consisting of roads, bridges, curbs and gutters, are capitalized along with other general fixed assets. No depreciation has been provided on general fixed assets. Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group, not in the governmental funds. 'ma These two account groups are not"funds." They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. Noncurrent portions of long-term receivables due to governmental funds are reported on their — balance sheets, in spite of their measurement focus. However, special reporting treatments are used to indicate in all governmental funds that they should not be considered "available spendable resources,"since they do not represent net current assets. Recognition of revenues in these funds represented by noncurrent receivables is deferred until they become current receivables. 45 a CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long- Term Debt Account Group. Proprietary funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets, including fixed assets, and all liabilities, including long-term liabilities, associated with their activity are included on their balance sheets. Their reported fund equity is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses)in net total assets. D. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. _■ Governmental Funds and Expendable Trust Funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become susceptible to accrual, i.e., both measurable and available. Substantially all revenues are accrued. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred, except for principal and interest on general long-term debt which is recognized when due. Agency Fund assets and liabilities are accounted for on the modified accrual basis of accounting. Proprietary funds are accounted for using the accrual basis of accounting. Revenues are recognized when they are earned, and expenses are recognized when they are incurred. The City has implemented Statement No. 20 of the Governmental Accounting Standards Board (GASB), Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting. This statement provides guidance on business- type accounting and financial reporting for proprietary activities. Proprietary activities should apply to all applicable GASB pronouncements as well as the following pronouncements issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements: Statements of Interpretations of the Financial Accounting Standards Board (FASB), Accounting Principles Board Opinion, and Accounting Research Bulletins of the Committee on Accounting Procedures. In addition, a proprietary activity may elect to apply all FASB Statements and Interpretations issued after November 30, 1989, except for those that conflict with GASB pronouncements. The City has elected not to apply FASB Statements and Interpretations issued after November 30, 1989. 46 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 E. Budgets and Budgetary Accounting 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. a 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. 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. There were no supplemental appropriations required or made during the year. 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, Special Revenue Funds and Capital Improvement Capital Projects 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. (See Note 16 for further information on budgeted and unbudgeted capital projects funds.) 8. Budgets for the General, Special Revenue and Capital Improvement Capital Projects Funds are adopted on a basis consistent with generally accepted accounting principles. 9. 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. 10. 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. 47 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS — DECEMBER 31, 1999 F. Assets, Liabilities and Fund Equity 1) Cash and Cash Equivalents,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. With exception of the Deferred Compensation Agency Fund which states investments in a deferred compensation plan at market, all investments are stated at cost which approximates market. Investments with original maturities of three months or less are classified as cash equivalents. The City provides temporary advances to funds that have insufficient cash balances by means of an advance from the internal service and enterprise funds. This is classified as an interfund payable in the fund receiving the advance and as an offsetting interfund receivable in the internal service and enterprise funds. In accordance with authorized investment laws,the City invests in various mortgage-backed securities, such as collateralized mortgage obligations. These securities are reported at .., cost in the balance sheet. They are reported in aggregate as U.S. Government Agencies in the disclosure of custodial credit risk. (See Note 2 on Investments). 2) Receivables Property Taxes The property tax levy was set by the City Council in November and was certified to the County for collection the following year. In Minnesota, counties act as collection agents for all property taxes. The County spreads the levies over all taxable property in the City. Such taxes become receivables of the City as of January 1. Property taxes are payable in equal installments by property owners to the County as follows: Personal property- February 28 and June 30 Real property- May 15 and October 15 The County remits the collections to the City and other taxing districts four times a year, in January,April, July and December. During 1999 taxes were adjusted downward $30,977 by Anoka County due to abatements and court ordered settlements. Unpaid taxes at December 31 become liens on the respective property and are classified in the financial statements as delinquent taxes receivable. The receivable is fully offset by -- deferred revenue as it is not available to finance current expenditures. Taxes payable on homestead property (as defined by State Statutes) are partially reduced by Homestead and Agriculture Credit Aid. This aid is paid to the City by the State in lieu of taxes levied against homestead property. The State remits this aid in two equal installments in July and December each year. . 4 8 -. a CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 Special Assessments Receivable 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. a Collection of annual installments (including interest) is handled by the County in the same manner as property taxes. Property owners are allowed to prepay total future installments without interest or prepayment penalties. Special assessments receivable includes the following components: Unremitted-amounts collected by Anoka County and not remitted to the City prior to year end. Delinquent-amounts billed to property owners but not paid. Deferred - assessment installments which will be billed to property owners in future years. "' 3) Inventories Inventory in the General Fund consists of expendable supplies held for consumption and is recorded at cost on a first in first out basis. The cost is recorded as an expenditure at the time individual inventory items are used. Reported inventories are equally offset by a fund balance reserve which indicates that they do not constitute"available spendable resources" even though they are a component of net current assets. Proprietary Funds inventory items are expensed at the time they are sold or used. (Consumption method). Liquor inventories are recorded on the average cost basis. "' 4) Property and Equipment/General Fixed Assets All fixed assets are recorded at historical cost or estimated historical cost, if the original cost was not available. Donated fixed assets are carried at the fair market value on the date donated. Additions to general fixed assets for general City purposes, including public domain (infrastructure)fixed assets are recorded as expenditures of the applicable fund in the year in which the fixed asset was purchased or constructed, and are capitalized in the General Fixed Asset Account Group. Depreciation is not recorded on these assets. 49 S S CITY OF FRIDLEY. MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 Property and equipment of the proprietary funds are capitalized in these funds. Depreciation of exhaustible property and equipment of the proprietary funds is charged as an expense against their operations and accumulated depreciation is reported on proprietary fund balance sheets. Depreciation has been provided over the estimated useful lives using the straight line method. The estimated useful lives are as follows: Improvements Other Than Building 20-50 years Buildings 20-50 years Machinery and Equipment 5- 10 years Land N/A 5) 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. 6) Encumbrances Encumbrances represent purchase commitments. Encumbrances outstanding at year end are reported as reservations of fund balance since they do not constitute expenditures or liabilities. G. Revenues, Expenditures and Expenses The following transactions are accounted for as described below: General Property Taxes/Special Assessments - Revenue is recognized in the year of collection, with amounts due from the County and received early in the following year set up as receivable (unremitted receivables). Uncollected (delinquent) taxes and special assessments receivable are fully offset by deferred revenue until they become available to finance current expenditures. General property taxes and special assessments are recognized when cash is received to prevent overstating due to delinquencies. Principal Portion of Special Assessments - Revenue is recognized in the year the assessments are collected. Interest Revenue on Special Assessments Receivable - Interest revenue is recognized in the year of collection of the current principal installment. 50 N MI Ai CITY OF FRIDLEY, MINNESOTA — NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 "" Intergovernmental Revenues - Intergovernmental revenues in the form of state aids are recorded as revenue when allocations are made by statutory formula. Other intergovernmental revenues received as reimbursements for specific purposes or projects are recognized based upon the expenditures incurred. Intergovernmental revenues received through abatements or shares are recorded in the year determined to be measurable and available. Investment Income-Interest is recorded as revenue in the year earned. Water and Sewer Service Charges- Revenue is recognized when earned with no allowance for uncollectibles as delinquent accounts are certified as a special assessment lien against the property billed. Unbilled service charges are included in receivables at year end. Other Revenues - Licenses, fines, penalties and miscellaneous revenues are recorded as revenues when received in cash because they are generally not measurable until actually received. Interest Expense on Bonded Indebtedness - Interest expense is recorded as an expenditure when paid in the governmental fund types and accrued when incurred in the proprietary fund — types. Bond and Interest Payments Due January 1 - Expenditures are recognized when amounts are remitted to the paying agent(usually in December)for payment of bonds and interest. H. Comparative Data Comparative total data for the prior year have been presented in the accompanying combined financial statements in order to provide an understanding of changes in the City's financial position and operations. However, comparative(i.e., presentation of prior year totals by fund type) — data have not been presented in all statements since their inclusion would make the statements unduly complex and difficult to read. Total columns on the combined statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. I. 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. 51 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31. 1999 2. Deposits and Investments A. Deposits In accordance with applicable Minnesota Statutes,the City maintains deposits at depository banks authorized by the City Council. All such depositories are members of the Federal Reserve System. Minnesota Statutes require that all deposits be protected by insurance, surety bond or collateral. If collateral is pledged as protection for the deposits, State Statutes require that it be held by a third party in the City's name. The market value of the collateral must at a minimum be 110% of the deposits not covered by insurance or bonds (140% in the case of mortgage backed collateral). Repurchase agreements are intentionally overcollateralized at 105% to insure that the safety of investment principal is attained and losses do not occur from rapid overnight deterioration. Due to wire transfers and tax settlements credited by the bank at the end of the day, there were several occasions during the year where overnight deposits were undercollateralized. On each occasion, �" the uncollateralized balance was invested with another financial institution on the following day. Balances at December 31, 1999 are as follows: Bank Carrying Balances Amount City $190,032 $847,613 HRA 251,048 (417,029) The entire bank balances are covered by Federal Depository Insurance or collateral held by the City/HRA's agent in the City/HRA's name. B. Investments The City is authorized by Minnesota Statutes to invest in the following: (a) Direct obligations or obligations guaranteed by the United States or its agencies. (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. (c) General obligations of the State of Minnesota or any of its municipalities. "" (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. ■•■• 52 CITY OF FRIDLEY. MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31. 1999 (f) Repurchase or reserve 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, or certain — Minnesota securities broker dealers. (g) Future contracts sold under authority of Minnesota Statutes 471.56, subd. 5. •• The City invests in collateralized mortgage obligations (a form of mortgage backed security). These securities allow cash flows to be split so that different classes of securities with different maturities and coupons may be created. The City, by policy, is only allowed to invest in these types of securities if they are classified as a Planned Amortization Class 1 (PAC 1)with a stated maturity of 3 years or less. The City's investments are categorized below to give an indication of the level of risk assumed at year end. The level of risk is defined by the following criteria set out by the Governmental Accounting Standards Board within Statement No. 3. Category 1 includes investments that are insured or registered '— for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty, or by its trust department or agent but not in the City's name. The fair value and credit risk of the investments held by the City at year end are as follows: -- Credit Risk Category Fair Value Securities Type 1 2 3 Amount U.S. government agencies AM or instrumentalities $30,576,164 $ - $ - $30,576,164 Investments not subject to categorization: "' Mutual funds 3,245,149 Total investments $33,821,313 53 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 The fair value and credit risk of the investments held by the HRA at year end are as follows: Credit Risk Category Fair Value Securities Type _ 1 2 3 Amount ^ U.S. government securities $190,773 $ - $ - $190,773 U.S. government agencies or instrumentalities 7,925,700 - - 7,925,700 $8,116,473 $0 $0 8,116,473 Investments not subject to categorization: Money market fund 34,219 Mutual fund 546,278 Total investments $8,696,970 3. Special Assessments Receivable Special assessments receivable at December 31, 1999 are as follows: Capital Special Special Improvements Assessment Public Assessment Capital Capital Utilities --. General Debt Service Projects Projects Enterprise Total Unremitted $3,573 $6,346 $ - $ - $12,516 $22,435 Delinquent 594 20,357 103 2,199 - 23,253 Deferred 7,783 1,231,732 6,552 66,007 161,184 1,473,258 Total $11,950 $1,258,435 $6,655 $68,206 $173,700 $1,518,946 54 a a CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 4. Due From Other Governments Amounts due from other governments at December 31, 1999 are as follows: a General Fund: Anoka County: a) Fines and forfeits $12,024 Met Council 1,400 Fridley HRA 31,212 Other 3,590 Total General Fund $48,226 — Special Revenue Funds: State of Minnesota: a) RAP grant $8,698 b) Justice Department 108,032 c) Department of Trade and Economic Development 112,176 Anoka County: a) Community Development Block Grant 1,723 b) Project Safety Net 2,375 — c) Auto Theft 447 d) Sheriffs Office 1,247 e) Recycling 63,282 Met Council 116,026 Fridley HRA 4,703 Total Special Revenue Funds $418,709 Debt Service Funds: Fridley HRA $71,667 Enterprise Funds: a Metropolitan Council Environmental Services(MCES)- current portion of amounts due from MCES $25,915 Other 3,077 a Total Enterprise Funds $28,992 Internal Service Funds: ... Fridley HRA $26 a a 55 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 5. Changes in General Fixed Assets A summary of changes in general fixed assets are as follows: — Balance Balance January 1 December 31, 1999 Additions Deletions 1999 Land $2,449,646 $292,945 $6,604 $2,735,987 Buildings 6,933,651 26,248 18,514 6,941,385 Improvements other than buildings 21,605,446 2,862,891 422,934 24,045,403 Machinery and equipment 5,961,298 920,765 957,181 5,924,882 Total $36,950,041 $4,102,849 $1,405,233 $39,647,657 6. Summary of Proprietary Fund Property and Equipment A summary of proprietary fund type property, plant and equipment at December 31, 1999 follows: Internal Enterprise Service Funds Funds Public Information Liquor Utilities Systems Total Land $151,946 $154,531 $ - $306,477 Buildings 130,211 1,519,535 - 1,649,746 Improvements other than buildings 627,555 10,155,351 - 10,782,906 Machinery and equipment 322,638 2,137,175 643,715 3,103,528 Water and sewer lines - 18,041,570 - 18,041,570 1,232,350 32,008,162 643,715 33,884,227 _, Less: Accumulated depreciation (231,580) (11,648,727) (432,325) (12,312,632) Net property and equipment $1,000,770 $20,359,435 $211,390 $21,571,595 56 CITY OF FRIDLEY. MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 7. Long-Term Debt The following is a summary of long-term debt transactions of the City for the year ended December 31, 1999: Proprietary General Long-Term Debt Account Group Funds General Obligation Bonds General Tax Special Tax Obligation Increment Assessment Increment Total Revenue Bonds HRA Debt payable-January 1, 1999 $1,290,000 $13,760,000 $15,050,000 $5,625,000 $460,000 Debt issued - - - - - Debt retired (220,000) (75,000) (295,000) (300,000) (460,000) -• Debt payable-December 31, 1999 $1,070,000 $13,685,000 $14,755,000 $5,325,000 $0 a 57 CITY OF FRIDLEY. MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 Bonds payable at December 31, 1999 are comprised of the following individual issues (in thousands of dollars): General Long-Term Debt: $1,020,000 Special Assessment Bonds of 1991 due in varying annual installments of$35,000-$90,000 through February 1,2005; interest at 5.60%-6.60%. $330 $855,000 General Obligation Special Assessment bonds of 1992,Series A, ,.., due in varying annual installments of$50,000-$95,000 through February 1, 2004;interest at 3.00%-5.25%. 380 $150,000 Special Assessment Bonds of 1994 due in varying annual installments of$5,000-$60,000 through February 1,2005; interest at 4.75%-6.10%. 110 $320,000 Special Assessment Bonds of 1996 due in varying annual installments of$30,000-$35,000 through February 1,2007;interest at 4.05%-4.95%. 250 $9,575,000 General Obligation Tax Increment Bonds of 1997 due in varying annual installments of$75,000-$1,175,000 through August 1,2009; interest at 4.60%-5.12%. 9,500 $4,185,000 General Obligation Tax Increment Refinancing Bonds of 1998, due in varying annual installments of$75,000-$62,000 through February 1,2012; interest at 5.10%-5.65%. 4,185 - Subtotal General Long-Term Debt 14,755 Revenue Bonds: $1,615,000 General Obligation Water Revenue Bonds of 1991 due in varying annual installments$35,000-$140,000 through February 1,2011;interest at 5%-6.8%. 1,205 $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 3.0%-5.7%. 395 $335,000 General Obligation Water,Sewer and Storm Water Revenue Bonds of 1994 due in varying annual installments of$5,000-$25,000 through February 1,2005;interest at 4.75%-6.10%. 235 $2,615,000 General Obligation Water and Storm Water Revenue Bonds of 1996 due in varying annual installments of$65,000-$165,000 through February 1,2012;interest at 4.05%-5.30%. 2,310 $1,180,000 General Obligation Water Revenue Bonds of 1998,due in varying annual installments of$90,000-$130,000 through February 1,2011. 1,180 Subtotal Revenue Bonds 5,325 Total Bonds Payable $20,080 58 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 The General Obligation Tax Increment Refunding Bonds are payable primarily from tax increment revenue with any deficiency to be provided by general property taxes. General Obligation Special Assessment Bonds are payable from assessments levied against benefited properties. While it is anticipated that the assessment will be adequate to make the required debt payments, the City is responsible for any deficiency that may occur. The General Obligation Revenue Bonds are payable from the net revenues of the City's water, sewer and storm water systems in addition to the general obligation pledge. General Obligation Bonds Year Ending Special Tax December 31, Assessment Increment-City Revenue Total 2000 $276,874 $776,188 $581,203 $1,634,265 2001 269,771 1,572,701 678,244 2,520,716 2002 179,608 1,654,664 667,151 2,501,423 2003 171,607 1,636,292 660,032 2,467,931 2004 139,134 1,733,002 666,391 2,538,527 2005-2008 199,765 7,598,512 2,340,470 10,138,747 2009-2012 - 3,780,800 1,509,313 5,290,113 $1,236,759 $18,752,159 $7,102,804 $27,091,722 $9,467,255 is available in the Debt Service Fund to service the Special Assessment and Redevelopment Bonds. $13,883,731 is available in the Public Utilities Enterprise Funds, to service the Water, Sewer and Storm Water Revenue Bonds. There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions. Legal Debt Margin - Under applicable State Statutes, the legal debt margin is 2% of the most recent market value less certain deductions. At December 31, 1999,the legal debt margin was$25,486,970. CROSSOVER REFUNDING On May 1, 1998,the City issued $1,180,000 in General Obligation Water Revenue Refunding Bonds with an average interest rate of 4.64%to advance refund$1,135,000 of outstanding 1991 General Obligation Water Revenue Bonds with an average interest rate of 6.73%. The net proceeds of $1,143,395(after payment of$29,485 of issuance costs)were used to purchase U.S. Government Securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for the interest on the refunding bonds before the crossover date and called principal on the refunded bonds on February 1,2000. The City advance refunded the 1991 General Obligation Water Revenue Bonds to reduce its total debt service payments over the next 11 years by$124,409 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt)of$90,281. 59 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 The City is responsible for the debt service of the 1991 refunded bonds through the crossover date ^ (February 1,2000)and the debt service of the 1998 refunding bonds after the crossover date. The debt service of the 1998 refunding bonds before the crossover date is payable from the escrow account. Assets held with the escrow agent total $1,139,431 at December 31, 1999. The financial statements present both bond issues and the escrow account assets pursuant to SFAS No. 76. The effect on the financial statements is to report greater debt than, in substance,the City will be responsible for paying. 8. 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 by writing to PERA, 514 St. Peter Street#200, St. Paul, Minnesota, 55102 or by calling (651)296-7460 or 1-800-652-9026. ^ 60 CITY OF FRIDLEY, MINNESOTA ... NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 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 are required to contribute 8.75%and 4.75%, respectively, of their annual covered salary. PEPFF members are required to contribute 6.20%of their annual covered salary. The City of Fridley is required to contribute the following percentages of annual covered payroll: 11.43%for Basic Plan PERF members, 5.18%for Coordinated Plan PERF members, and 9.30%for PEPFF members. The City's contributions for the years ending December, 1997, 1998 and 1999 equal to the contractually required contributions for each year as set by state statute for PERF and PEPFF as follows: PERF PEPFF 1997 $177,375 $207,015 1998 207,829 206,140 1999 225,626 201,709 C. Public Employees Retirement Association (PERA)-Defined Contribution Plan Description Three council members of the City of Fridley are covered by 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 six accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2 percent of employer contributions and one- tenth of one percent of the assets in each member's account. 61 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 Total contributions made by the City during fiscal year 1999 were: --, Percentage of Amount Covered Payroll Required Employees Employer Employees Employer Rates PEDCP $1,254 $1,254 5.00% 5.00% 5.00% 9. Defined Contribution Pension Plan -Fridley Volunteer Firefighters Relief Association Plan Description The Fridley Volunteer Firefighters Relief Association (Association), is a single employer public A» 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. 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 remitted $98,229 and $97,482 in State Aid to the Association for 1999 and 1998, respectively. During 1999 and as of December 31, 1999,the Association held no securities issued by the City or other related parties. 10. Defined Benefit Pension Plan -Police and Fire Consolidation Fund Plan Description Until July 1, 1999,the City of Fridley was a participant in the Police and Fire Consolidation Fund (PFCF), an agent, multiple-employer defined benefit plan. Effective July 1, 1999, this plan was — terminated and all assets and liabilities were transferred to the Public Employee's Retirement Association (PERA) Police and Fire Fund, a cost sharing multiple-employer plan (see note 22). At the time of termination the PFCF was over funded, and the City received a refund on April 13, 2000. These funds will be accounted for in a Special Revenue Fund and are restricted to public safety expenditures. 62 CITY OF FRIDLEY. MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 11. Interfund Receivables and Payables Interfund receivables and payables of the primary government at December 31, 1999 are as follows: Interfund Interfund Receivables Payables Due From/Due To: General Fund $131,154 $805 Special Revenue Fund: HRA Reimbursement - 4,542 Solid Waste Abatement Fund - 107,010 Debt Service Funds: Chemical Assessment Team Fund - 19,601 Closed Bond Fund 204,958 - Bond of the Future - 204,958 Capital Projects Funds: Capital Improvements 743,582 - Special Assessments - 743,383 Enterprise Funds: Public Utilities Fund 899 14 _ Liquor - 80 Trust and Agency Funds: Hotel/Motel Tax Agency Fund - 200 $1,080,593 $1,080,593 Interfund receivables and payables of the HRA component unit at December 31, 1999 is as follows: Interfund Interfund Receivables Payables Due From/Due To: General Fund $3,541,973 $ - Special Revenue Funds - 1,297,790 Capital Projects Funds: Lake Pointe - 1,052,899 Gateway East - 151,699 Onan - 55,524 Shorewood - 16,007 57th Avenue Redevelopment - 117,004 Housing Replacement#1 - 851,050 $3,541,973 $3,541,973 63 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 12. Reserved Fund Balances/Retained Earnings The following reservations have been made of various fund balances/retained earnings of the primary government at December 31, 1999: General Fund: Reserved for: Encumbrances $2,490 .. Inventory 36,432 Long-term receivables 92,076 Total General Fund 130,998 Debt Service Funds: Reserved for debt service 730,457 Reserved for long-term receivable 805,410 Total Debt Service Funds 1,535,867 Capital Projects Funds: --� Reserved for encumbrances 336,559 Total Governmental Funds $2,003,424 Retained Earnings: Enterprise Funds: Reserved for capital outlay $2,249,000 Internal Service Funds: .� Employee Benefits Fund: Reserved for employee benefits 211,382 Total Proprietary Funds $2,460,382 "' The HRA component unit had reserved fund balances at December 31, 1999: Reserved for: Debt service $33,495 •• Mortgage receivable 2,738,371 Total component unit $2,771,866 r.. 64 — CITY OF FRIDLEY. MINNESOTA — NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 13. Designated Fund Balance The following designations have been made of various fund balances at December 31, 1999: General Fund: Working capital $4,115,072 Contingencies 1,152,465 — Subsequent year's expenditures 1,123,365 Replacement of fixed assets 554,331 Total General Fund 6,945,233 Special Revenue Funds: Cable TV Fund: Subsequent year's expenditures 6,215 Drug and Gambling Forfeiture Fund: Drug and gambling enforcement 21,579 Housing Revitalization Program . Housing revitalization 250,000 F.C.C. Donations: Fridley community center 90,755 Total Special Revenue Funds 368,549 — Capital Projects Funds: Capital Improvement Fund: -- Replacement of fixed assets 1,156,460 Park improvements 1,580,984 Street improvements 2,237,058 Total Capital Projects Funds 4,974,502 Total of designated fund balances $12,288,284 r 65 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS .. DECEMBER 31, 1999 14. Contributed Capital A reconciliation of contributed capital is as follows: Self Information Public Insurance Systems Utilities Internal Internal Enterprise Service Service Fund Fund Fund Balance-January 1 $11,167,705 $1,000,000 $844,830 Increases: Current capital contributions - - - Decreases: .. Depreciation of contributed assets (370,065) - (13,980) Balance-December 31 $10,797,640 $1,000,000 $830,850 .. r 66 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 15. Segment Information for Enterprise Funds The City maintains operating funds for Liquor and Public Utilities (water, sewer, storm sewer operations). Segment information for the year ended December 31, 1999 is as follows: Total Public Enterprise Liquor Utilities Funds Sales (less cost of sales of$2,905,867) $781,117 $ - $781,117 Operating revenues - 5,389,003 5,389,003 Operating expenses (613,404) (5,242,661) (5,856,065) Operating income 167,713 146,342 314,055 Nonoperating revenues (expenses)-net 39,912 190 40,102 Operating transfers in (out) (170,000) (295,000) (465,000) Net income $37,625 ($148,468) ($110,843) Depreciation expense included in operating expenses $20,085 $890,698 $910,783 Property and equipment: Additions (including capital contributions) 809,076 544,713 1,353,789 Working capital 956,170 9,608,845 10,565,015 Total assets 2,442,376 30,484,745 32,927,121 Bonds payable - 5,304,849 5,304,849 Fund equity: Contributed capital - 10,797,640 10,797,640 Retained earnings 1,956,940 14,175,791 16,132,731 Total fund equity $1,956,940 $24,973,431 $26,930,371 67 CITY OF FRIDLEY. MINNESOTA NOTES TO FINANCIAL STATEMENTS -• DECEMBER 31, 1999 16. Unbudgeted Capital Projects Funds The City does not budget all Capital Projects Funds, and accordingly, the applicable columns of the Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Exhibit A-3) excludes amounts relating to unbudgeted funds. A reconciliation of actual results for budgeted and unbudgeted funds is as follows: Fund -w Other Balance Financing (Deficit) Sources December 31, Revenues Expenditures (Uses) 1999 All Capital Projects Funds $1,136,969 $3,518,184 $576,386 $4,982,253 Less unbudgeted funds: Special Assessments Fund (492,043) (2,889,650) (3,503,467) 328,808 Budgeted Capital Projects Funds $644,926 $628,534 ($2,927,081) $5,311,061 17. 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. The City's workers compensation insurance policy is retrospectively rated. With this type of policy, final premiums are determined after loss experience is known. The amount of premium adjustment, if any, is not reasonably estimable and is not recorded until received or paid. Effective September 1, 1999 the City began to self insure for health insurance. The Self Insurance Fund pays claims up to a maximum of$15,000. The City purchases insurance for claims in excess of coverage provided by the fund. -- 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, are considered to be immaterial. As of December 31, 1999, the Self Insurance Fund has accumulated equity in the amount of$1,939,629 to cover future claims and losses. sia 68 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 18. Commitments and Contingencies A. Litigation IMO 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. B. Federal and State Funds The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and is 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, 1999. C. 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. ANEW 69 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 19. Leases ..- Operating Leases The City leases space for two of its liquor stores. Total costs for these leases were $66,104 for the year ended December 31, 1999. The future minimum lease payments for these leases are as follows: Year Ending December 31, 2000 $132,319 2001 91,519 "' 2002 83,319 2003 83,319 2004 85,904 ... Thereafter 1,027,651 Total $1,504,031 20. Deficit Balances The following funds had deficit balances at December 31, 1999: Special Revenue Funds: Solid waste abatement ($47,739) Chemical assessment team (24,384) Capital Projects Funds: Amat Special assessments (328,808) These deficit balances will be funded by a combination of future General Obligation Improvement Bonds and transfers from other funds. 21. 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. 70 CITY OF FRIDLEY, MINNESOTA ... NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 As of December 31, 1999, there were twenty-six series of Industrial Revenue Bonds issued. The aggregate principal amount payable for the four series issued after July 1, 1995 was $18,165,000. 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. 22. Subsequent Event On April 13, 2000 the City of Fridley received $2,242,586 from the Public Employees Retirement Association (PERA). This refund was received pursuant to legislation passed in 1999(Chapter 222, Section 10)related to Police and Fire consolidation accounts. The refund was not recorded as a receivable as of December 31, 1999 as the specific dollar amount was unknown, and it was received after 60 days of the year end. OEM Alma 71 GENERAL FUND The General Fund was established to account for the revenues and expenditures necessary to carry out basic governmental activities of the City, such as general government, public safety, and public works. Revenues are recognized by source, such as property taxes, licenses and permits, fines and forfeits, charges for services and state-shared taxes. General Fund expenditures are made primarily for current day to day operations and are recorded by functional classifications and by operating departments. This fund accounts for all financial transactions not accounted for in another fund. • Exhibit B-1 CITY OF FRIDLEY, MINNESOTA GENERAL FUND COMPARATIVE BALANCE SHEET December 31, 1999 and 1998 Assets 1999 1998 Cash and investments $6,858,487 $7,279,914 Receivables: Accounts 62,832 124,633 Taxes: Unremitted 65,421 171,351 - Delinquent 36,200 80,116 Special assessments: Unremitted 3,573 592 Delinquent 594 - Deferred 7,783 3,740 Interest 343,961 261,472 _. Loan receivable 6,300 6,300 Developer note 85,776 96,004 Due from other funds 131,154 79,826 Due from other governments 48,226 . 80,841 Inventories, at cost 36,432 46,802 Total assets $7,686,739 $8,231,591 - Liabilities and Fund Balance Liabilities: Accounts payable $184,213 $181,156 Deposits payable 51,955 18,203 Salaries payable 301,023 255,925 Deferred revenue 44,577 86,743 Due to other funds 805 1,136 Due to other governments 27,935 5,597 - Total liabilities 610,508 548,760 Fund balance: - Reserved for encumbrances 2,490 20,314 Reserved for inventory 36,432 46,803 Reserved for long-term receivables 92,076 102,304 - Unreserved: Designated for working capital 4,115,072 4,064,726 Designated for contingencies 1,152,465 1,107,494 Designated for subsequent year's expenditures 1,123,365 886,782 - Designated for fixed asset replacement 554,331 1,164,684 Undesignated - 289,724 Total fund balance 7,076,231 7,682,831 -_ Total liabilities and fund balance $7,686,739 $8,231,591 ^ 74 -. Exhibit B-2 CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL Year Ended December 31, 1999 With comparative actual amounts for year ended December 31, 1998 1999 Variance Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Taxes $3,879,583 $3,975,124 $95,541 $4,007,547 Special assessments 2,588 10,249 7,661 3,682 Licenses and permits 653,324 793,444 140,120 712,975 .. Intergovernmental revenue 3,333,195 3,323,400 (9,795) 3,409,671 Charges for services 1,197,770 1,079,696 (118,074) 1,209,668 Fines and forfeits 181,589 172,399 (9,190) 196,448 Investment income 435,000 292,631 (142,369) 376,741 Miscellaneous 159,177 254,648 95,471 207,529 Total revenues 9,842,226 9,901,591 59,365 10,124,261 Expenditures: Current: General government 1,923,841 1,829,838 94,003 1,710,258 .. Public safety 4,242,536 4,189,882 52,654 4,058,203 Municipal center 235,308 235,308 - 205,481 Public works 2,531,849 2,510,359 21,490 2,224,219 Community development 721,120 721,120 - 648,839 Recreation and naturalist 1,035,450 994,354 41,096 897,288 Capital outlay 474,710 451,509 23,201 315,601 Total expenditures 11,164,814 10,932,370 232,444 10,059,889 Excess(deficiency)of revenues over(under)expenditures (1,322,588) (1,030,779) 291,809 64,372 Other financing sources (uses): Sale of fixed assets 15,000 21,279 6,279 34,912 Operating transfers in 402,900 402,900 - 372,902 Total other financing sources (uses) 417,900 424,179 6,279 407,814 Excess(deficiency)of revenues and other - financing sources over(under)expenditures and other financing uses ($904,688) (606,600) $298,088 472,186 .. Fund balance-January 1 7,682,831 7,210,645 Fund balance-December 31 $7,076,231 $7,682,831 75 Exhibit B-3 Page 1 of 2 '^ CITY OF FRIDLEY, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES-BUDGET AND ACTUAL -- Year Ended December 31, 1999 With comparative actual amounts for year ended December 31, 1998 1999 Variance Favorable 1998 Budget Actual (Unfavorable) Actual Taxes and special assessments: Current ad valorem taxes $3,825,521 $3,950,575 $125,054 $3,926,220 -- Delinquent ad valorem taxes 21,519 11,518 (10,001) 3,584 Penalties and interest 32,543 13,031 (19,512) 14,224 Forfeited sale-taxes - - - 63,519 Special assessments 2,588 10,249 7,661 3,682 Total taxes and special assessments 3,882,171 3,985,373 103,202 4,011,229 Licenses and permits: Licenses: Contractor 36,360 41,410 5,050 48,338 Business 85,334 106,627 21,293 85,667 All other 60,373 37,872 (22,501) 63,580 Permits 471,257 607,535 136,278 515,390 Total licenses and permits 653,324 793,444 140,120 712,975 - Intergovernmental revenue: Civil defense 5,000 7,229 2,229 2,828 Federal grants - 2,791 2,791 - FEMA disaster aid - - - 49,626 State maintenance aid 190,904 175,245 (15,659) 186,582 State credits 1,038,950 1,047,294 8,344 1,048,920 Local government aid 1,684,587 1,677,315 (7,272) 1,677,068 Local performance aid 34,413 34,413 - 37,466 Other state grants 13,620 1,097 (12,523) 41,291 - Police and fire pension 326,754 341,292 14,538 317,201 Other 38,967 36,724 (2,243) 48,689 Total intergovernmental revenue 3,333,195 3,323,400 (9,795) 3,409,671 Charges for services: General government 825,048 696,136 (128,912) 866,385 Public safety 155,036 133,284 (21,752) 140,577 Conservation of health 1,336 6,294 4,958 187 Recreation 216,350 243,982 27,632 202,519 Total charges for services 1,197,770 1,079,696 (118,074) 1,209,668 Fines and forfeits 181,589 172,399 (9,190) 196,448 .- Investment income 435,000 292,631 (142,369) 376,741 76 Exhibit B-3 Page 2 of 2 CITY OF FRIDLEY, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES-BUDGET AND ACTUAL Year Ended December 31, 1999 With comparative actual amounts for year ended December 31, 1998 1999 Variance Favorable 1998 Budget Actual (Unfavorable) Actual Miscellaneous revenue: Rent income $1,849 $83 ($1,767) $74 Sale of property 7,053 14,171 7,118 608 Donations 6,827 58,084 51,257 22,807 Miscellaneous 143,448 182,310 38,862 184,040 Total miscellaneous revenue 159,177 254,648 95,471 207,529 Total revenues 9,842,226 9,901,591 59,365 10,124,261 Other financing sources: Sale of fixed assets 15,000 21,279 6,279 34,912 Operating transfers in: Liquor fund 170,000 170,000 - 372,902 Special assessment debt service fund 232,900 232,900 - - Total other financing sources 417,900 424,179 6,279 407,814 Total revenues and other financing sources $10,260,126 $10,325,770 $65,644 $10,532,075 a a a 77 Exhibit B-4 - Page 1 of 3 CITY OF FRIDLEY, MINNESOTA GENERAL FUND "' SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES-BUDGET AND ACTUAL Year Ended December 31, 1999 With comparative actual amounts for year ended December 31, 1998 1999 Variance Favorable 1998 Budget Actual (Unfavorable) Actual General government: - Mayor and council: Personal services $58,051 $58,051 $ - $51,018 Supplies and other charges 41,799 41,799 - 38,543 Total mayor and council 99,850 99,850 0 89,561 Planning commission: Supplies and other charges 1,753 159 1,594 636 Other commissions: Supplies and other charges 27,868 27,868 - 616 City manager: Personal services 228,053 228,053 - 201,814 Supplies and other charges 57,777 57,777 - 51,820 Total City manager 285,830 285,830 0 253,634 Personnel: Personal services 117,038 115,125 1,913 91,002 Supplies and other charges 13,329 13,329 - 18,179 Total personnel 130,367 128,454 1,913 109,181 . Legal: Supplies and other charges 269,963 269,963 - 272,780 Elections: Personal services 10,389 10,389 - 24,191 Supplies and other charges 947 947 - 1,665 Total elections 11,336 11,336 0 25,856 Accounting: �► Personal services 466,199 462,636 3,563 445,534 Supplies and other charges 92,969 86,857 6,112 91,063 Total accounting 559,168 549,493 9,675 536,597 _„ Assessing: Personal services 128,936 126,781 2,155 127,119 Supplies and other charges 8,899 8,765 134 9,794 Total assessing 137,835 135,546 2,289 136,913 MIS: Personal services 123,712 101,690 22,022 95,531 Supplies and other charges 86,675 34,182 52,493 28,247 - Total MIS 210,387 135,872 74,515 123,778 City clerk/records: Personal services 104,977 101,947 3,030 103,365 Supplies and other charges 8,099 8,099 - 8,674 Total City clerk/records 113,076 110,046 3,030 112,039 79 Exhibit B-4 Page 2 of 3 CITY OF FRIDLEY, MINNESOTA GENERAL FUND SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES-BUDGET AND ACTUAL ^ Year Ended December 31, 1999 With comparative actual amounts for year ended December 31, 1998 1999 Variance Favorable 1998 Budget Actual (Unfavorable) Actual Nondepartmental: Personal services $5,000 $4,289 $711 $1,508 Supplies and other charges 71,408 71,132 276 47,159 Total nondepartmental 76,408 75,421 987 48,667 Total general government 1,923,841 1,829,838 94,003 1,710,258 Public safety: Police: Personal services 3,027,215 3,015,579 11,636 2,956,820 Supplies and other charges 329,918 329,918 - 290,913 Total police 3,357,133 3,345,497 11,636 3,247,733 "' Fire: Personal services 644,494 630,013 14,481 611,171 Supplies and other charges 133,281 119,786 13,495 115,183 - Total fire 777,775 749,799 27,976 726,354 Rental inspections: Personal services 78,521 68,573 9,948 63,673 Supplies and other charges 14,661 11,567 3,094 10,712 Total rental inspections 93,182 80,140 13,042 74,385 Civil defense: Supplies and other charges 14,446 14,446 - 9,731 Total public safety 4,242,536 4,189,882 52,654 4,058,203 Municipal center: Personal services 23,121 23,121 - 27,808 Supplies and other charges 212,187 212,187 - 177,673 Total municipal center 235,308 235,308 0 205,481 Public works: Engineering: Personal services 388,915 388,915 - 367,108 Supplies and other charges 67,901 54,647 13,254 50,244 - Total engineering 456,816 443,562 13,254 417,352 Public works and parks: Personal services 1,186,217 1,186,217 - 1,074,360 ,_ Supplies and other charges 888,816 880,580 8,236 732,507 Total public works and parks 2,075,033 2,066,797 8,236 1,806,867 Total public works 2,531,849 2,510,359 21,490 2,224,219 -^ 80 .. Exhibit B-4 Page3of3 CITY OF FRIDLEY, MINNESOTA GENERAL FUND SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES-BUDGET AND ACTUAL Year Ended December 31, 1999 With comparative actual amounts for year ended December 31, 1998 1999 Variance Favorable 1998 Budget Actual (Unfavorable) Actual Community development: Building inspection: Personal services $173,442 $173,442 $ - $163,651 Supplies and other charges 79,238 79,238 - 106,871 ... Total building inspection 252,680 252,680 0 270,522 Planning: Personal services 337,356 337,356 - 305,069 _ Supplies and other charges 131,084 131,084 - 73,248 Total planning 468,440 468,440 0 378,317 Total community development 721,120 721,120 0 648,839 Recreation and naturalist: Recreation: Personal services 511,198 499,940 11,258 430,634 Supplies and other charges 266,598 236,760 29,838 221,935 Total recreation 777,796 736,700 41,096 652,569 Naturalist: Personal services 197,065 197,065 - 184,792 Supplies and other charges 60,589 60,589 - 59,927 Total naturalist 257,654 257,654 0 244,719 Total recreation and naturalist 1,035,450 994,354 41,096 897,288 Capital outlay expenditures: Finance and administration 650 - 650 - Police 96,800 89,835 6,965 72,743 Fire 68,125 68,125 - 14,761 Municipal center 1,360 1,360 - 1,379 Public works 298,900 286,096 12,804 222,917 .. Planning 700 - 700 - Naturalist 1,775 1,775 - 797 Recreation 2,000 - 2,000 3,004 "' Non-departmental 4,400 4,318 82 - Total capital outlay 474,710 451,509 23,201 315,601 Total expenditures $11,164,814 $10,932,370 $232,444 $10,059,889 81 5•a t„ 0. 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. Grant Management Fund This 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 be spent on specific activities outlined in the grant. 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. Drug and Gambling Forfeiture Fund' This fund receives forfeited property in connection with illegal gambling or drug activity. Pursuant to Minnesota Statutes the equally y proceeds are disbursed a uali between the investigating agency and the prosecuting agency. , 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. ,u. Housing Revitalization Fund This fund receives revenues to administer the City Council s priority of improving housing rehabilitation programs to revitalize aging neighborhoods in the community. Chemical Assessment Team Fund This fund receives grant revenues and accounts for expenditures related to training and coordinating a multi-city chemical assessment team. " F.C.C. Donations Fund This fund is used to account for donations received and used in improving and furnishing the Fridley Community Center. 't I CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31. 1999 With comparative totals for December 31, 1998 Cable Grant Solid Waste Assets TV Management Abatement Cash and investments $174,225 $556,038 $ - Accounts receivable 37,241 - 16,350 Due from other funds - - - Due from other governments - 350,724 63,282 Total assets $211,466 $906,762 $79,632 Liabilities and Fund Balance Liabilities: Accounts payable $450 $9,283 $18,472 Deposits payable 10,219 - - Salaries payable 1,444 9,344 1,889 Deferred revenue - 39,414 - Due to other funds - - 107,010 Due to component unit - 848,528 - Due to other governments - 193 - Total liabilities 12,113 906,762 127,371 Fund balance: Unreserved: Designated for subsequent year's expenditures 6,215 - - Designated for special revenue programs - - Undesignated 193,138 - (47,739) Total fund balance 199,353 0 (47,739) Total liabilities and fund balance $211,466 $906,762 $79,632 84 0. Exhibit C-1 Drug and Chemical HRA Gambling Housing Assessment F.C.C. Totals Reimbursement Forfeiture Revitalization Team Donations 1999 1998 $ - $23,890 $250,000 $ - $90,755 $1,094,908 $578,743 - - - - - - 53,591 68,558 - - - - - - 1,301 4,703 - - - - 418,709 108,659 - $4,703 $23,890 $250,000 $0 $90,755 $1,567,208 $757,261 - $49 $2,311 $ - $4,480 $ - $35,045 $86,509 - - - - - 10,219 10,221 - - - 303 - 12,980 9,039 - - - - - 39,414 59,455 4,542 - - 19,601 - 131,153 79,896 -� - - - - - 848,528 - 112 - - - - 305 55,495 4,703 2,311 0 24,384 0 1,077,644 300,615 a - - - - - 6,215 79,021 a - 21,579 250,000 - 90,755 362,334 421,264 - - - (24,384) - 121,015 (43,639) 0 21,579 250,000 (24,384) 90,755 489,564 456,646 a $4,703 $23,890 $250,000 $0 $90,755 $1,567,208 $757,261 a a a a 85 CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31. 1999 –, With comparative totals for year ended December 31, 1998 Cable Grant Solid Waste TV Management Abatement Revenues: Licenses and permits $143,640 $ - $ - Intergovernmental revenue - 1,248,468 73,336 —, Charges for services 816 - 211,307 Fines and forfeits - - - Investment income 5,049 - - Donations - 1,857 - Miscellaneous - 305 2,168 Total revenues 149,505 1,250,630 286,811 Expenditures: Current: General government 89,533 334,104 . 308,181 — Public safety - - - Recreation and naturalist - - - Capital outlay 36,179 90,081 1,684 ,.� Total expenditures 125,712 424,185 309,865 Excess(deficiency)of revenues over(under)expenditures 23,793 826,445 (23,054) Other financing sources (uses): Sale of fixed assets - - - Operating transfers in - - - Operating transfer to component unit - (848,528) - Total other financing sources(uses) 0 (848,528) 0 Excess(deficiency)of revenues and other financing sources over(under)expenditures and other financing uses 23,793 (22,083) (23,054) Fund balance(deficit)-January 1 175,560 22,083 (24,685) Fund balance(deficit)-December 31 $199,353 $0 ($47,739) 86 Exhibit C-2 Drug and Chemical HRA Gambling Housing Assessment F.C.C. Totals Reimbursement Forfeiture Revitalization Team Donations 1999 1998 $ - $ - $ - $ - $ - $143,640 $133,170 14,850 - - 43,421 - 1,380,075 492,849 - - - - - 212,123 304,880 - 23,399 - - - 23,399 6,284 - - - - - 3,433 8,482 17,731 - - - - 5,000 6,857 152,377 - - - - - 2,473 932 a 14,850 23,399 0 43,421 8,433 1,777,049 1,108,223 14,850 - - - - 746,668 874,858 - 8,033 - 45,767 - 53,800 39,845 - - - - 2,230 2,230 4,873 •• - 7,761 - 3,084 14,367 153,156 164,390 14,850 15,794 0 48,851 16,597 955,854 1,083,966 - 7,605 - (5,430) (8,164) 821,195 24,257 - - - - - - 4,000 "" - - 60,251 - - 60,251 251,500 - - - - - (848,528) - 0 0 60,251 0 0 (788,277) 255,500 - 7,605 60,251 (5,430) (8,164) 32,918 279,757 - 13,974 189,749 (18,954) 98,919 456,646 176,889 $0 $21,579 $250,000 ($24,384) $90,755 $489,564 $456,646 - - a 87 Exhibit C-3 CITY OF FRIDLEY, MINNESOTA CABLE TV SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1999 and 1998 Assets 1999 1998 Cash and investments $174,225 $152,971 Accounts receivable 37,241 34,230 Total assets $211,466 $187,201 Liabilities and Fund Balance Liabilities: Accounts payable $450 $181 Deposits payable 10,219 10,221 Salaries payable 1,444 1,239 Total liabilities 12,113 11,641 ... Fund balance: Unreserved: Designated for subsequent year's expenditures 6,215 56,938 Designated for cable TV program 193,138 118,622 Total fund balance 199,353 175,560 Total liabilities and fund balance $211,466 $187,201 •y. 88 r Exhibit C-4 CITY OF FRIDLEY, MINNESOTA CABLE TV SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES,AND "` CHANGES IN FUND BALANCE-BUDGET AND ACTUAL Year Ended December 31, 1999 With comparative actual amounts for year ended December 31, 1998 - 1999 Variance Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Licenses-franchise fee $97,041 $143,640 $46,599 $133,170 Charges for services - 816 816 - Investment income 7,500 5,049 (2,451) 8,398 - Donations - - - 82,833 Miscellaneous - - - 687 Total revenues 104,541 149,505 44,964 225,088 Expenditures: Current: General government: Personal services 60,125 60,072 53 58,453 Supplies and other charges 61,354 29,461 31,893 67,020 Capital outlay 40,000 36,179 3,821 10,185 ... Total expenditures 161,479 125,712 35,767 135,658 Excess(deficiency)of revenues over(under)expenditures ($56,938) 23,793 $80,731 89,430 Fund balance-January 1 175,560 86,130 Fund balance-December 31 $199,353 $175,560 r. 89 Exhibit C-5 CITY OF FRIDLEY, MINNESOTA GRANT MANAGEMENT SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1999 and 1998 Assets 1999 1998 ,„ Cash and investments $556,038 $73,078 Due from other governments 350,724 78,236 Total assets $906,762 $151,314 Liabilities and Fund Balance Liabilities: Accounts payable 9,283 64,218 Salaries payable 9,344 5,558 Deferred revenue 39,414 59,455 Due to component unit 848,528 - Due to other governments 193 - Total liabilities 906,762 129,231 Fund balance: Unreserved - 22,083 Total liabilities and fund balance $906,762 $151,314 90 Exhibit C-6 ... CITY OF FRIDLEY, MINNESOTA GRANT MANAGEMENT SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL Year Ended December 31, 1999 With comparative actual amounts for year ended December 31, 1998 1999 Variance _ Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue: Federal $204,886 $341,621 $136,735 $303,788 State 1,074,962 906,847 (168,115) 63,375 Charges for services - - - 249 Miscellaneous 87 2,162 2,075 - Total revenues 1,279,935 1,250,630 (29,305) 367,412 Expenditures: Current: General government: Personal services 238,982 238,982 - 196,974 Supplies and other charges 95,122 95,122 - 140,544 Capital outlay 90,081 90,081 - 23,920 .. Total expenditures 424,185 424,185 0 361,438 Excess(deficiency)of revenues over(under)expenditures 855,750 826,445 (29,305) 5,974 Other financing sources (uses): Sale of fixed assets - - - 4,000 Operating transfers in (out): Storm Water Fund - - - 1,500 Component Unit (848,528) (848,528) - - Total other financing sources (uses) (848,528) (848,528) 0 5,500 Excess (deficiency)of revenues and other financing sources over(under)expenditures and other financing uses $7,222 (22,083) ($29,305) 11,474 Fund balance-January 1 22,083 10,609 ` Fund balance- December 31 $0 $22,083 91 Exhibit C-7 CITY OF FRIDLEY. MINNESOTA SOLID WASTE ABATEMENT SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31. 1999 and 1998 Assets 1999 1998 Accounts receivable $16,350 $34,328 Due from other governments 63,282 24,750 Total assets $79,632 $59,078 Liabilities and Fund Balance Liabilities: Accounts payable $18,472 $21,147 — Salaries payable 1,889 2,099 Due to other funds 107,010 60,517 Total liabilities 127,371 83,763 Fund balance: Unreserved: Undesignated (47,739) (24,685) Total liabilities and fund balance $79,632 $59,078 ,A► 92 Exhibit C-8 CITY OF FRIDLEY, MINNESOTA SOLID WASTE ABATEMENT SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL Year Ended December 31, 1999 With comparative actual amounts for year ended December 31, 1998 1999 Variance Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue: State $75,000 $73,336 ($1,664) $75,220 Charges for services 195,000 211,307 16,307 304,631 Miscellaneous - 2,168 2,168 245 Total revenues 270,000 286,811 16,811 380,096 Expenditures: Current: General government: Personal services 53,449 53,449 - 71,859 Supplies and other charges 269,642 254,732 14,910 325,804 Capital outlay 1,684 1,684 - - Total expenditures 324,775 309,865 14,910 397,663 Excess (deficiency)of revenues over(under)expenditures ($54,775) (23,054) $31,721 (17,567) Fund balance(deficit)-January 1 (24,685) (7,118) Fund balance(deficit)-December 31 ($47,739) ($24,685) 93 Exhibit C-9 CITY OF FRIDLEY, MINNESOTA HRA REIMBURSEMENT SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1999 and 1998 ^ Assets 1999 1998 Due from other funds $ - $1,301 Due from other governments 4,703 230 Total assets $4,703 $1,531 Liabilities and Fund Balance Liabilities: Accounts payable $49 $ - -�► Due to other funds 4,542 1,531 Due to other governments 112 - Total liabilities 4,703 1,531 Fund balance: Unreserved - undesignated - - Total liabilities and fund balance $4,703 $1,531 r 94 Exhibit C-10 CITY OF FRIDLEY, MINNESOTA HRA REIMBURSEMENT SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL Year Ended December 31, 1999 With comparative actual amounts for year ended December 31, 1998 1999 Variance Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue: Housing Redevelopment Authority $14,850 $14,850 $ - $13,969 Expenditures: Current: General government: Supplies and other charges 14,850 14,850 - 14,204 Excess(deficiency)of revenues over(under)expenditures $0 0 $0 (235) Fund balance-January 1 - 235 Fund balance-December 31 $0 $0 95 Exhibit C-11 CITY OF FRIDLEY, MINNESOTA DRUG AND GAMBLING FORFEITURE SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1999 and 1998 Assets 1999 1998 Cash and investments $23,890 $8,531 Due from other governments - 5,443 .. Total assets $23,890 $13,974 Liabilities and Fund Balance *` Liabilities: Accounts payable $2,311 $ - Fund balance: Designated for drug and gambling enforcement 21,579 13,974 Total liabilities and fund balance $23,890 $13,974 ..z .y. 96 Exhibit C-12 — CITY OF FRIDLEY, MINNESOTA DRUG AND GAMBLING FORFEITURE SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES,AND "` CHANGES IN FUND BALANCE-BUDGET AND ACTUAL Year Ended December 31, 1999 With comparative actual amounts for year ended December 31, 1998 1999 Variance — Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Fines and forfeits $23,399 $23,399 $ - $6,284 Expenditures: -- Current: Public safety: Supplies and other charges 8,033 8,033 - 852 Capital outlay 7,761 7,761 - 2,311 Total expenditures 15,794 15,794 0 3,163 Excess(deficiency)of revenues over expenditures $7,605 7,605 $0 3,121 Fund balance-January 1 13,974 10,853 Fund balance-December 31 $21,579 $13,974 r 97 Exhibit C-13 CITY OF FRIDLEY, MINNESOTA HOUSING REVITALIZATION SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1999 and 1998 Assets 1999 1998 Cash and investments $250,000 $189,749 Total assets $250,000 $189,749 Liabilities and Fund Balance Liabilities: Due to other funds $ - $ - Fund balance: Designated for special revenue programs 250,000 189,749 Total liabilities and fund balance $250,000 $189,749 +` 98 Exhibit C-14 CITY OF FRIDLEY, MINNESOTA HOUSING REVITALIZATION SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL Year Ended December 31, 1999 With comparative actual amounts for year ended December 31, 1998 1999 Variance Favorable 1998 Budget Actual (Unfavorable) Actual Revenues $ - $ - $ - $ - Expenditures: Capital outlay 60,251 - 60,251 12,071 Excess (deficiency)of revenues over(under)expenditures (60,251) 0 60,251 (12,071) Other financing sources (uses): Operating transfer in: Special Assessment Debt Service Fund 60,251 60,251 - 250,000 Excess(deficiency)of revenues and other financing sources over(under)expenditures $0 60,251 $60,251 237,929 Fund balance(deficit)-January 1 189,749 (48,180) Fund balance-December 31 $250,000 $189,749 99 Exhibit C-15 CITY OF FRIDLEY, MINNESOTA CHEMICAL ASSESSMENT TEAM SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1999 and 1998 Assets 1999 1998 Assets $ - $ - Liabilities and Fund Balance Liabilities: Accounts payable $4,480 $963 Salaries payable 303 143 Due to other funds 19,601 17,848 Total liabilities 24,384 18,954 Fund balance: Unreserved - undesignated (24,384) (18,954) Total liabilities and fund balance $0 $0 100 Exhibit C-16 CITY OF FRIDLEY, MINNESOTA CHEMICAL ASSESSMENT TEAM SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL Year Ended December 31, 1999 With comparative actual amounts for year ended December 31, 1998 1999 Variance Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue: Federal $170 $170 $ - $ - State 43,251 43,251 - 36,497 Total revenues 43,421 43,421 0 36,497 Expenditures: Current: Public safety: Personal services 12,401 12,401 - 11,801 Supplies and other charges 33,366 33,366 - 27,192 Capital outlay 3,084 3,084 - 959 Total expenditures 48,851 48,851 0 39,952 Excess(deficiency)of revenues over(under)expenditures ($5,430) (5,430) $0 (3,455) Fund balance(deficit)-January 1 (18,954) (15,499) Fund balance(deficit)- December 31 ($24,384) ($18,954) 101 Exhibit C-17 CITY OF FRIDLEY, MINNESOTA F.C.C. DONATIONS SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1999 and 1998 ..- Assets 1999 1998 Cash and investments $90,755 $154,414 Total assets $90,755 $154,414 Liabilities and Fund Balance Liabilities: Due to other governments $ - $55,495 Fund balance: Designated for Fridley Community Center 90,755 98,919 — Total liabilities and fund balance $90,755 $154,414 102 Exhibit C-18 CITY OF FRIDLEY, MINNESOTA F.C.C. DONATIONS SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES,AND �` CHANGES IN FUND BALANCE-BUDGET AND ACTUAL Year Ended December 31, 1999 With comparative actual amounts for year ended December 31, 1998 1999 Variance Favorable 1998 Budget Actual (Unfavorable) Actual Revenues: — Investment income $3,433 $3,433 $ - $9,333 Donations 5,000 5,000 - 69,544 Total revenues 8,433 8,433 0 78,877 Expenditures: Current: Recreation and naturalist: Supplies and other charges 2,230 2,230 - 4,873 Capital outlay 14,367 14,367 - 114,944 Total expenditures 16,597 16,597 0 119,817 Excess(deficiency)of revenues over(under)expenditures ($8,164) (8,164) $0 (40,940) -- Fund balance-January 1 98,919 139,859 Fund balance-December 31 $90,755 $98,919 103 DEBT SERVICE FUNDS Debt Service Funds are used to finance and account for the payment of principal and interest on all general obligation debt excluding those accounted for in the proprietary funds. Special Assessment Fund This 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. Tax Increment Fund This fund services the debt of the tax increment bonds. Tax increment money is used to service the debt on redevelopment related bonds. Exhibit D-1 CITY OF FRIDLEY, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1999 and 1998 — Special Tax Totals Assets Assessment Increment 1999 1998 Cash and investments $8,640,036 $40,293 $8,680,329 $8,288,693 Receivables: — Special assessments: Unremitted 6,346 - 6,346 10,406 Delinquent 20,357 - 20,357 24,147 — Deferred 1,231,732 - 1,231,732 1,307,751 Loan receivable from component unit 805,410 - 805,410 1,394,917 Due from other funds 204,958 - 204,958 - Due from other governments 71,667 - 71,667 - — Total assets $10,980,506 $40,293 $11,020,799 $11,025,914 Liabilities and Fund Balance — Liabilities: Accounts payable $3,232 $ - $3,232 $10,000 — Deferred revenue 1,252,091 - 1,252,091 1,331,899 Due to other funds 204,958 - 204,958 - Due to component unit 93,263 - 93,263 - Due to other governments - - - 2,747 — Total liabilities 1,553,544 0 1,553,544 1,344,646 Fund balance: — Reserved for debt service 690,164 40,293 730,457 764,581 Reserved for long term receivable 805,410 - 805,410 1,398,785 Unreserved-undesignated 7,931,388 - 7,931,388 7,517,902 _ Total fund balance 9,426,962 40,293 9,467,255 9,681,268 Total liabilities and fund balance $10,980,506 $40,293 $11,020,799 $11,025,914 106 Exhibit D-2 . CITY OF FRIDLEY, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -. Year Ended December 31, 1999 With comparative totals for year ended December 31, 1998 Special Tax Totals Assessment Increment 1999 1998 Revenues: Special assessments $396,385 $ - $396,385 $416,746 Investment income 276,793 - 276,793 496,813 Interest on loan 68,826 - 68,826 72,417 Total revenues 742,004 0 742,004 985,976 .. Expenditures: Debt service: Principal retirement 220,000 75,000 295,000 4,310,000 .. Interest and fiscal charges 64,484 666,912 731,396 798,781 Bond issuance costs - - - 29,587 Miscellaneous 3,284 - 3,284 2,748 -� Total expenditures 287,768 741,912 1,029,680 5,141,116 Excess (deficiency)of revenues _ over(under)expenditures 454,236 (741,912) (287,676) (4,155,140) Other financing sources (uses): Bond proceeds - - - 4,160,329 .- Operating transfers in (out): General Fund (232,900) - (232,900) (232,902) Capital Improvements Fund (281,386) - (281,386) - Special Revenue Fund (60,251) - (60,251) (250,000) HRA Component Unit (93,263) 741,463 648,200 637,905 Total other financing sources (uses) (667,800) 741,463 73,663 4,315,332 Excess (deficiency)of revenues and other financing sources over(under)expenditures and other financing uses (213,564) (449) (214,013) 160,192 Fund balance-January 1 9,640,526 40,742 9,681,268 9,521,076 Fund balance-December 31 $9,426,962 $40,293 $9,467,255 $9,681,268 "' 107 CAPITAL PROJECT FUNDS Capital Projects Funds are used to account for the resources expended to acquire permanent or long term assets. These funds are established to provide special accounting for bond proceeds, grants and contributions designated for the acquisition of capital assets. Capital Projects Funds provide a formal mechanism, which enables administrators to ensure that revenues designated for specific purposes are properly used. Capital Improvement Fund This 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. Special Assessment Fund This 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 for primarily by the benefited property owner. Exhibit E-1 CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET - December 31, 1999 With comparative totals for December 31, 1998 Capital Special Totals Assets Improvements Assessments 1999 1998 Cash and investments $4,633,955 $421,194 $5,055,149 $7,288,525 Receivables: Accounts - 3,039 3,039 4,186 Taxes: Unremitted 1,139 - 1,139 1,771 Delinquent 1,279 - 1,279 2,830 ,.. Special assessments: Delinquent 103 2,199 2,302 1,301 Deferred 6,552 66,007 72,559 68,661 Due from other funds 743,582 - 743,582 1,078,758 ._ Due from other governments - - - 281,153 Total assets $5,386,610 $492,439 $5,879,049 $8,727,185 Liabilities and Fund Balance Liabilities: Accounts payable $5,033 $2,599 $7,632 $12,726 Contracts payable 62,751 - 62,751 57,627 Deferred revenue 7,765 67,765 75,530 72,778 Due to other funds - 743,383 743,383 1,078,759 Due to other governments - 7,500 7,500 718,213 Total liabilities 75,549 821,247 896,796 1,940,103 Fund balance: Reserved for encumbrances 336,559 - 336,559 1,208,913 Unreserved: Designated for fixed asset replacement 1,156,460 - 1,156,460 1,450,313 Designated for park improvements 1,580,984 - 1,580,984 388,874 Designated for street improvements 2,237,058 - 2,237,058 5,173,650 ,� Undesignated - (328,808) (328,808) (1,434,668) Total fund balance 5,311,061 (328,808) 4,982,253 6,787,082 Total liabilities and fund balance $5,386,610 $492,439 $5,879,049 $8,727,185 111 Exhibit E-2 Page 1 of 2 CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - Year Ended December 31, 1999 With comparative totals for year ended December 31, 1998 Capital Special Totals Improvements Assessments 1999 1998 Revenues: Taxes: Current ad valorem taxes $72,863 $ - $72,863 $72,663 Delinquent ad valorem taxes 237 - 237 67 Special assessments 1,509 18,684 20,193 19,979 Total taxes 74,609 18,684 93,293 92,709 Intergovernmental revenue: State credits 15,000 - 15,000 15,000 State aid for construction 235,464 - 235,464 1,361,428 County - 340,367 340,367 - Other 6,219 116,859 123,078 324,728 --, Total intergovernmental revenue 256,683 457,226 713,909 1,701,156 Investment income 219,968 4,788 224,756 385,564 .., Miscellaneous revenue: Refunds and reimbursements - 7,597 7,597 - Other 93,666 3,748 97,414 52,411 -, Total miscellaneous revenue 93,666 11,345 105,011 52,411 Total revenues 644,926 492,043 1,136,969 2,231,840 112 .. .. Exhibit E-2 Page 2 of 2 CITY OF FRIDLEY, MINNESOTA . CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 1999 ,-- With comparative totals for year ended December 31, 1998 Capital Special Totals Improvements Assessments 1999 1998 Expenditures: Current: Public works $46,273 $322,995 $369,268 $602,318 Debt service: Bond issuance costs - - - 750 Capital outlay 582,261 2,566,655 3,148,916 2,927,326 Total expenditures 628,534 2,889,650 3,518,184 3,530,394 Excess(deficiency)of revenues over(under)expenditures 16,392 (2,397,607) (2,381,215) (1,298,554) Other financing sources (uses): Operating transfers in (out): .. Water Fund - 100,000 100,000 - Sewer Fund - 75,000 75,000 - Storm Water Fund - 120,000 120,000 - Special Assessment Debt Service Fund - 281,386 281,386 - - Capital Improvement Fund - 2,927,081 2,927,081 1,394,127 Special Assessments Capital Projects Fund (2,927,081) - (2,927,081) (1,394,127) Total other financing sources (uses) (2,927,081) 3,503,467 576,386 0 Excess(deficiency)of revenues and .. other financing sources over(under)expenditures and other financing uses (2,910,689) 1,105,860 (1,804,829) (1,298,554) Fund balance(deficit)-January 1 8,221,750 (1,434,668) 6,787,082 8,085,636 Fund balance(deficit)-December 31 $5,311,061 ($328,808) $4,982,253 $6,787,082 113 Exhibit E-3 CITY OF FRIDLEY. MINNESOTA CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND COMPARATIVE BALANCE SHEET December 31. 1999 and 1998 — Totals Assets 1999 1998 Cash and investments $4,633,955 $6,892,767 Receivables: Accounts - 4,186 Taxes: Unremitted 1,139 1,771 — Delinquent 1,279 2,830 Special assessments: Delinquent 103 101 Deferred 6,552 7,448 Due from other funds 743,582 1,078,758 Due from other governments - 281,153 Total assets $5,386,610 $8,269,014 Liabilities and Fund Balance Liabilities: Accounts payable $5,033 $10,487 Contracts payable 62,751 16,453 Deferred revenue 7,765 10,379 Due to other governments - 9,945 Total liabilities 75,549 47,264 Fund balance: Reserved for encumbrances 336,559 1,208,913 Unreserved: Designated for fixed asset replacement 1,156,460 1,450,313 Designated for park improvements 1,580,984 388,874 Designated for street improvements 2,237,058 5,173,650 Total fund balance 5,311,061 8,221,750 Total liabilities and fund balance $5,386,610 $8,269,014 114 .� Exhibit E-4 -. CITY OF FRIDLEY, MINNESOTA CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL Year Ended December 31, 1999 With comparative actual amounts for year ended December 31, 1998 1999 Variance Favorable 1998 "' Budget Actual (Unfavorable) Actual Revenues: Taxes: Current ad valorem taxes $70,550 $72,863 $2,313 $72,663 Delinquent ad valorem taxes - 237 237 67 Total taxes 70,550 73,100 2,550 72,730 Special assessments - 1,509 1,509 2,189 Intergovernmental revenue: - State credits 15,000 15,000 - 15,000 State aid for construction 235,464 235,464 - 1,361,428 Other - 6,219 6,219 309,335 Total intergovernmental revenue 250,464 256,683 6,219 1,685,763 Investment income 417,225 219,968 (197,257) 378,115 a Miscellaneous revenue: Other 30,000 93,666 63,666 21,673 Total revenues 768,239 644,926 (123,313) 2,160,470 Expenditures: Current: Public works 50,000 46,273 3,727 41,166 Capital outlay 1,026,356 582,261 444,095 847,913 - Total expenditures 1,076,356 628,534 447,822 889,079 Excess(deficiency)of revenues over (under)expenditures (308,117) 16,392 324,509 1,271,391 Other financing sources (uses): Operating transfers in (out): Special Assessment Capital Projects Fund (2,937,504) (2,927,081) 10,423 (1,394,127) Excess(deficiency)of revenues and other financing sources over(under)expenditures and other financing uses ($3,245,621) (2,910,689) $334,932 (122,736) Fund balance-January 1 8,221,750 8,344,486 Fund balance-December 31 $5,311,061 $8,221,750 a 115 ENTERPRISE FUNDS Enterprise Funds are used to account for the operations of self-supporting governmental activities that render services or goods to the public. The accounting records are maintained on an accrual basis. The reporting for enterprise funds is similar to comparable private enterprises. Creditors, legislators or the general public can evaluate the performance of a municipal enterprise on the same basis as they can the performance of investor-owned enterprises. Liquor Fund This fund accounts for the operation of the City's off-sale liquor establishments. Public Utilities Fund This fund accounts for the operations of the City-owned sewer and water systems. .- Exhibit F-1 CITY OF FRIDLEY, MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET December 31, 1999 - With comparative totals for December 31, 1998 Public Totals Assets Liquor Utilities 1999 1998 Current assets: Cash and investments $675,132 $7,244,279 $7,919,411 $8,118,538 -, Restricted investments - 1,139,431 1,139,431 1,140,520 Accounts receivable 820 1,341,593 1,342,413 1,773,027 Taxes receivable - - - 174 Special assessments receivable - 173,700 173,700 233,804 Accrual interest receivable - 21,483 21,483 31,483 Due from other funds - 899 899 1,326 Due from other governments - 28,992 28,992 228,814 `` Inventories, at cost 748,558 5,781 754,339 303,952 Prepaid items 17,096 169,152 186,248 250,492 Total current assets 1,441,606 10,125,310 11,566,916 12,082,130 Non-current assets: Long-term receivable: Metropolitan Council Environmental Services - - - 25,915 Property and equipment, at cost: Property and equipment 1,232,350 32,008,161 33,240,511 32,086,183 -, Less: accumulated depreciation (231,580) (11,648,726) (11,880,306) (11,124,874) Net property and equipment 1,000,770 20,359,435 21,360,205 20,961,309 Total assets $2,442,376 $30,484,745 $32,927,121 $33,069,354 -, Liabilities and Fund Equity Current liabilities: -, Accounts payable $329,445 $51,318 $380,763 $265,270 Contracts payable 87,601 - 87,601 - Salaries payable 15,470 28,304 43,774 28,499 -- Due to other funds 80 14 94 119 Due to other governments 52,840 10,641 63,481 9,171 Accrued interest payable - 116,188 116,188 122,162 ., Bonds payable-current - 310,000 310,000 300,000 Total current liabilities 485,436 516,465 1,001,901 725,221 Long-term liabilities: ^, Bonds payable - 4,994,849 4,994,849 5,302,919 Total liabilities 485,436 5,511,314 5,996,750 6,028,140 Fund equity: Contributed capital - 10,797,640 10,797,640 11,167,705 Retained earnings: Reserved for capital outlay - 2,249,000 2,249,000 2,567,000 Unreserved 1,956,940 11,926,791 13,883,731 13,306,509 Total fund equity 1,956,940 24,973,431 26,930,371 27,041,214 Total liabilities and fund equity $2,442,376 $30,484,745 $32,927,121 $33,069,354 ,-- 118 Exhibit F-2 "' CITY OF FRIDLEY, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Year Ended December 31, 1999 With comparative totals for year ended December 31, 1998 Public Totals Liquor Utilities 1999 1998 Sales and cost of sales: .. Sales $3,686,984 $ - $3,686,984 $3,219,049 Cost of sales 2,905,867 - 2,905,867 2,555,072 Gross profit 781,117 0 781,117 663,977 Operating revenues: Water sales and sewer rents - 5,389,003 5,389,003 6,512,163 Other - - - 8,785 '" Total operating revenues 0 5,389,003 5,389,003 6,520,948 Operating expenses: .. Personal services 342,125 1,061,550 1,403,675 1,254,417 Supplies and other charges: Disposal charges - 2,677,625 2,677,625 2,086,475 Other 251,194 612,788 863,982 1,727,250 0. Depreciation 20,085 890,698 910,783 882,009 Total operating expenses 613,404 5,242,661 5,856,065 5,950,151 Operating income 167,713 146,342 314,055 1,234,774 Non-operating revenues(expenses): Intergovernmental revenue - - - 124,441 ... Investment income 54,007 255,948 309,955 431,542 Debt service - (283,058) (283,058) (306,481) Special assessments - 16,375 16,375 68,943 Loss on disposal of fixed assets (14,095) (7,960) (22,055) - Other revenues - 18,885 18,885 - Total non-operating revenues (expenses) 39,912 190 40,102 318,445 Income before operating transfers 207,625 146,532 354,157 1,553,219 Operating transfers in (out): General Fund (170,000) - (170,000) (140,000) -- Special Revenue Fund - - - (1,500) Special Assessment Capital Project Fund - (295,000) (295,000) - Total transfers in (out) (170,000) (295,000) (465,000) (141,500) Net income 37,625 (148,468) (110,843) 1,411,719 Credit arising from transfer of depreciation on contributed capital - 370,065 370,065 369,919 Retained earnings-January 1 1,919,315 13,954,194 15,873,509 14,091,871 Retained earnings-December 31 $1,956,940 $14,175,791 $16,132,731 $15,873,509 119 Exhibit F-3 CITY OF FRIDLEY, MINNESOTA "`' ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS Year Ended December 31, 1999 --, With comparative totals for year ended December 31, 1998 Public Totals Liquor Utilities 1999 1998 ^ Cash flows from operating activities: Operating income $167,713 $146,342 $314,055 $1,234,774 Adjustments to reconcile operating income(loss) -' to net cash flows from operating activities: Depreciation 20,085 890,698 910,783 882,009 Loss on sale of fixed assets 14,095 7,960 22,055 184,733 Change in assets and liabilities: Decrease (increase)in receivables (791) 527,596 526,805 82,002 Decrease(increase)in due from other funds - 427 427 3 Decrease(increase) in due from other governments - 199,822 199,822 25,608 "-k Decrease(increase)in inventories (452,395) 2,008 (450,387) (33,854) Decrease(increase)in prepaid items (4,365) 68,609 64,244 26,314 Increase (decrease) in payables 270,115 (3,433) 266,682 (83,567) Net cash flows from operating activities 14,457 1,840,029 1,854,486 2,318,022 Cash flows from noncapital financing activities: Intergovernmental revenue - - - 124,441 Operating transfers in (out) (170,000) (295,000) (465,000) (141,500) Special assessment collections - 16,375 16,375 68,943 Other revenues - 18,885 18,885 - -. Net cash flows from noncapital financing activities (170,000) (259,740) (429,740) 51,884 Cash flows from capital and related financing activities: -, Acquisition and construction of fixed assets (809,076) (544,713) (1,353,789) (871,696) Proceeds from sale of revenue bonds - - - 1,171,191 Principal paid on revenue bonds - (298,070) (298,070) (260,000) .-, Interest and paying agent fees on revenue bonds - (283,058) (283,058) (306,481) Net cash flows from capital and related financing activities (809,076) (1,125,841) (1,934,917) (266,986) Cash flows from investing activities: Investment income 54,007 255,948 309,955 431,542 Net increase(decrease) in cash and cash --r equivalents (910,612) 710,396 (200,216) 2,534,462 Cash and cash equivalents-January 1 1,585,744 7,673,314 9,259,058 6,724,596 Cash and cash equivalents-December 31 $675,132 $8,383,710 $9,058,842 $9,259,058 120 Exhibit F-4 CITY OF FRIDLEY, MINNESOTA LIQUOR ENTERPRISE FUND COMPARATIVE BALANCE SHEET December 31, 1999 and 1998 Totals Assets 1999 1998 Current assets: Cash and investments $675,132 $1,585,744 Accounts receivable 820 29 Inventories, at cost 748,558 296,163 Prepaid items 17,096 12,731 Total current assets 1,441,606 1,894,667 Property and equipment, at cost: Land 151,946 151,946 Buildings 130,211 130,211 Improvements other than buildings 627,555 49,047 Machinery and equipment 24,640 79,556 Office equipment and furniture 297,998 95,076 1,232,350 505,836 Less: accumulated depreciation (231,580) (265,867) Net property and equipment 1,000,770 239,969 Total assets $2,442,376 $2,134,636 Liabilities and Fund Equity Current liabilities: Accounts payable $329,445 $206,631 Contracts payable 87,601 - Salaries payable 15,470 8,603 Due to other funds 80 87 Due to other governments 52,840 - Total current liabilities 485,436 215,321 Fund equity: Retained earnings- unreserved 1,956,940 1,919,315 Total liabilities and fund equity $2,442,376 $2,134,636 121 Exhibit F-5 CITY OF FRIDLEY, MINNESOTA LIQUOR ENTERPRISE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Years ended December 31, 1999 and 1998 Totals 1999 1998 Sales and cost of sales: Sales $3,686,984 $3,219,049 Cost of sales 2,905,867 2,555,072 Gross profit 781,117 663,977 Operating expenses: Selling: Personal services 198,919 132,012 Supplies and other charges 30,863 24,658 Total selling expenses 229,782 156,670 Administration and overhead: Personal services 143,206 160,771 Supplies and other charges 220,331 129,995 Depreciation 20,085. 32,787 -, Total administration and overhead 383,622 323,553 Total operating expenses 613,404 480,223 Operating income 167,713 183,754 Non-operating revenues (expenses): ~` Investment income 54,007 83,226 Loss on disposal of fixed assets (14,095) - Total non-operating revenues 39,912 83,226 Income before operating transfers 207,625 266,980 Operating transfers in (out): General Fund (170,000) (140,000) Net income 37,625 126,980 Retained earnings-January 1 1,919,315 1,792,335 Retained earnings-December 31 $1,956,940 $1,919,315 122 Exhibit F-6 CITY OF FRIDLEY, MINNESOTA LIQUOR ENTERPRISE FUND COMPARATIVE STATEMENT OF CASH FLOWS Years ended December 31. 1999 and 1998 Totals 1999 1998 Cash flows from operating activities: Operating income $167,713 $183,754 Adjustments to reconcile operating income(loss)to net cash flows from operating activities: Depreciation 20,085 32,787 Loss on disposal of fixed assets 14,095 172 Changes in assets and liabilities: Decrease(increase)in receivables (791) 235 Decrease(increase)in inventories (452,395) (32,163) Decrease(increase)in prepaid items (4,365) (7,325) Increase(decrease)in payables 270,115 62,379 Net cash flows from operating activities 14,457 239,839 Cash flows from noncapital financing activities: Operating transfers in (out) (170,000) (140,000) Cash flows from capital and related financing activities: Acquisition and construction of fixed assets (809,076) (91,479) Cash flows from investing activities: Investment income 54,007 83,226 Net increase(decrease)in cash and cash equivalents (910,612) 91,586 Cash and cash equivalents-January 1 1,585,744 1,494,158 Cash and cash equivalents-December 31 $675,132 $1,585,744 123 Exhibit F-7 Page 1 of 2 CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITIES ENTERPRISE FUND COMPARATIVE BALANCE SHEET '-, December 31, 1999 and 1998 Totals Assets 1999 1998 Current assets: Cash and investments $7,244,279 $6,532,794 Restricted investments 1,139,431 1,140,520 Receivables: Accounts 1,341,593 1,772,998 Taxes - 174 Accrued interest 21,483 31,483 Special assessments 173,700 233,804 ,..k Due from other funds 899 1,326 Due from other governments 28,992 228,814 Inventories, at cost 5,781 7,789 Prepaid items 169,152 237,761 Total current assets 10,125,310 10,187,463 Noncurrent assets: ^` Long-term receivables: Metropolitan Council Environmental Services - 25,915 Property and equipment, at cost: Land 154,531 154,531 Buildings 1,519,535 1,520,821 j-. Improvements other than buildings 10,155,350 9,824,570 Machinery and equipment 2,126,525 2,027,044 Office equipment and furniture 10,650 11,811 Water and sewer lines 18,041,570 18,041,570 ""` Total property and equipment 32,008,161 31,580,347 Less: accumulated depreciation 11,648,726 10,859,007 Net property and equipment 20,359,435 20,721,340 Total assets $30,484,745 $30,934,718 124 Exhibit F-7 Page 2 of 2 CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITIES ENTERPRISE FUND .r COMPARATIVE BALANCE SHEET December 31. 1999 and 1998 Totals Liabilities and Fund Equity 1999 1998 Current liabilities: Accounts payable $51,318 $58,639 Salaries payable 28,304 19,896 Due to other funds 14 32 Due to other govemments 10,641 9,171 Accrued interest payable 116,188 122,162 Bonds payable-current 310,000 300,000 Total current liabilities 516,465 509,900 Long-term liabilities: Bonds payable 4,994,849 5,302,919 Total liabilities 5,511,314 5,812,819 Fund equity: Contributed capital 10,797,640 11,167,705 Retained earnings: Reserved for capital outlay 2,249,000 2,567,000 Unreserved 11,926,791 11,387,194 Total fund equity 24,973,431 25,121,899 Total liabilities and fund equity $30,484,745 $30,934,718 Ir 125 Exhibit F-8 CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITIES ENTERPRISE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS —. Years ended December 31, 1999 and 1998 Totals 1999 1998 Operating revenues: Water $1,597,714 $1,771,367 Sewer 3,468,816 4,425,015 Storm sewer 322,473 315,781 Other - 8,785 �-• Total operating revenues 5,389,003 6,520,948 Operating expenses: Personal services 1,061,550 961,634 Supplies and other charges: Disposal charges 2,677,625 2,086,475 Other 612,788 1,572,597 Depreciation: Purchased assets 520,633 479,302 Contributed assets 370,065 369,920 -- Total operating expenses 5,242,661 5,469,928 Operating income 146,342 1,051,020 Nonoperating revenues (expenses): Intergovernmental revenue - 124,441 Investment income 255,948 348,316 Debt service (283,058) (306,481) Special assessments 16,375 68,943 Loss on disposal of fixed assets (7,960) - -- Other revenues 18,885 - Total nonoperating revenues(expenses) 190 235,219 Income before operating transfers 146,532 1,286,239 Operating transfers in (out): Special Revenue Fund - (1,500) Special Assessment Capital Project Fund (295,000) - Total operating transfers in (out) (295,000) (1,500) Net income(loss) (148,468) 1,284,739 Credit arising from transfer of depreciation on contributed capital 370,065 369,919 Retained earnings-January 1 13,954,194 12,299,536 Retained earnings-December 31 $14,175,791 $13,954,194 126 �' Exhibit F-9 CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITIES ENTERPRISE FUND COMPARATIVE STATEMENT OF CASH FLOWS r- Years ended December 31, 1999 and 1998 Totals 1999 1998 Cash flows from operating activities: Operating income $146,340 $1,051,020 Adjustments to reconcile operating income(loss)to net cash flows from operating activities: Depreciation 890,698 849,222 ^ Loss on sale of fixed assets 7,960 184,561 Change in assets and liabilities: Decrease (increase)in receivables 527,598 81,767 ,� Decrease (increase) in due from other funds 427 3 Decrease (increase)in due from other governments 199,822 25,608 Decrease(increase)in inventories 2,008 (1,691) Decrease(increase) in prepaid items 68,609 33,639 Increase (decrease)in payables (3,433) (145,946) Net cash flows from operating activities 1,840,029 2,078,183 .. Cash flows from noncapital financing activities Intergovernmental revenue - 124,441 .. Operating transfers out (295,000) (1,500) Special assessments collections 16,375 68,943 Other revenues 18,885 - Net cash flows from noncapital financing activities (259,740) 191,884 Cash flows from capital and related financing activities: Acquisition and construction of fixed assets (544,713) (780,217) Proceeds from sale of revenue bonds - 1,171,191 Principal paid on revenue bonds (298,070) (260,000) .. Interest and paying agent fees paid on revenue bonds (283,058) (306,481) Net cash flows from capital and related financing activities (1,125,841) (175,507) Cash flows from investing activities: Investment income 255,948 348,316 .. Net increase(decrease) in cash and cash equivalents 710,396 2,442,876 Cash and cash equivalents-January 1 7,673,314 5,230,438 Cash and cash equivalents-December 31 $8,383,710 $7,673,314 "" 127 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 general liability policy, and for the self-insurance health plan for City employees. 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. Exhibit G-1 CITY OF FRIDLEY, MINNESOTA .a INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1999 With comparative totals for December 31, 1998 Employee Self Information Totals Assets Benefits Insurance Systems 1999 1998 Currnt assets: .� e Cash and investments $1,121,099 $1,937,905 $820,388 $3,879,392 $3,824,797 Accounts receivable - 1,698 - 1,698 - Due from other governments - 26 - 26 - Total current assets 1,121,099 1,939,629 820,388 3,881,116 3,824,797 Property and equipment, at cost: Property and equipment - - 643,715 643,715 573,892 Less: accumulated depreciation - - (432,325) (432,325) (405,418) Net property and equipment 0 0 211,390 211,390 168,474 Total assets $1,121,099 $1,939,629 $1,031,778 $4,092,506 $3,993,271 Liabilities and Fund Equity '°` Current liabilities: Accounts payable $8,186 $57,833 $4,397 $70,416 $19,763 ,,,, Payroll deductions payable 62,665 - - 62,665 62,959 Compensated absences payable 838,866 - - 838,866 842,050 Total liabilities 909,717 57,833 4,397 971,947 924,772 Fund equity: Contributed capital - 1,000,000 830,850 1,830,850 1,844,830 Retained earnings: Reserved for employee benefits 211,382 - - 211,382 188,933 Unreserved - 881,796 196,531 1,078,327 1,034,736 Total fund equity 211,382 1,881,796 1,027,381 3,120,559 3,068,499 Total liabilities and fund equity $1,121,099 $1,939,629 $1,031,778 $4,092,506 $3,993,271 130 Exhibit G-2 CITY OF FRIDLEY, MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Year Ended December 31, 1999 With comparative totals for year ended December 31, 1998 Employee Self Information Totals Benefits Insurance Systems 1999 1998 Operating revenues: Charges for services $2,707 $188,713 $100,611 $292,031 $98,697 Total operating revenues 2,707 188,713 100,611 292,031 98,697 Operating expenses: Personal services 14,854 - - 14,854 11,556 Supplies and other charges 784 189,869 57,536 248,189 295,934 Depreciation - - 100,611 100,611 96,931 Total operating expenses 15,638 189,869 158,147 363,654 404,421 r Operating income (loss) (12,931) (1,156) (57,536) (71,623) (305,724) Nonoperating revenues: Investment income 35,380 60,361 27,942 123,683 209,303 Net income (loss) 22,449 59,205 (29,594) 52,060 (96,421) Credit arising from transfer of depreciation on contributed capital - - 13,980 13,980 25,789 Retained earnings-January 1 188,933 822,591 212,145 1,223,669 1,294,301 Retained earnings- December 31 $211,382 $881,796 $196,531 $1,289,709 $1,223,669 t 131 1 Exhibit G-3 CITY OF FRIDLEY, MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS Year Ended December 31,1999 �. With comparative totals for year ended December 31, 1998 Employee Self Information Totals Benefits Insurance Systems 1999 1998 .. Cash flows from operating activities: Operating income(loss) ($12,931) ($1,156) ($57,536) ($71,623) ($305,724) Adjustments to reconcile operating income(loss) to net cash flows from operating activities: '4 Depreciation - - 100,611 100,611 96,931 Loss on sale of fixed assets - - - - 72,072 Change in assets and liabilities: „t (Increase)decrease in accounts receivable - (1,698) - (1,698) - (Increase)decrease in due from other governments - (26) - (26) - Increase(decrease)in accounts payable (5,806) 53,555 (5,282) 42,467 14,851 Increase(decrease)in .., compensated absences payable (3,184) - - (3,184) (16,640) Increase(decrease)in ' payroll deductions payable 7,892 - - 7,892 (7,342) Net cash flows from operating activities (14,029) 50,675 37,793 74,439 (145,852) Cash flows from capital and related financing r activities: Aquisition of fixed assets - - (143,527) (143,527) (34,929) Cash flows from investing activities: oft Investment income 35,380 60,361 27,942 123,683 209,303 Net increase(decrease)in cash and cash equivalents 21,351 111,036 (77,792) 54,595 28,522 A+. Cash and cash equivalents-January 1 1,099,748 1,826,869 898,180 3,824,797 3,796,275 Cash and cash equivalents-December 31 $1,121,099 $1,937,905 $820,388 $3,879,392 $3,824,797 "°'k Vey 7 sz ... 132 Exhibit G-4 CITY OF FRIDLEY, MINNESOTA EMPLOYEE BENEFITS INTERNAL SERVICE FUND COMPARATIVE BALANCE SHEET December 31, 1999 and 1998 Totals Assets 1999 1998 Cash and investments $1,121,099 $1,099,748 Total assets $1,121,099 $1,099,748 Liabilities and Fund Equity Current liabilities: Accounts payable $8,186 $5,806 Payroll deductions payable 62,665 62,959 Compensated absences payable 838,866 842,050 Total current liabilities 909,717 910,815 Fund equity: Retained earnings: Reserved for employee benefits 211,382 188,933 r Total liabilities and fund equity $1,121,099 $1,099,748 133 Exhibit G-5 CITY OF FRIDLEY, MINNESOTA EMPLOYEE BENEFITS INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS + Years ended December 31, 1999 and 1998 Totals 1999 1998 Operating revenues: Charges for services $2,707 $1,766 Operating expenses: General government: Personal services 14,854 11,556 Supplies and other charges 784 3,009 Total operating expenses 15,638 14,565 Operating income(loss) (12,931) (12,799) Nonoperating revenues: Investment income 35,380 58,943 Net income 22,449 46,144 - Retained earnings-January 1 188,933 142,789 Retained earnings- December 31 $211,382 $188,933 a.. ,e. 4 134 Exhibit G-6 CITY OF FRIDLEY, MINNESOTA EMPLOYEE BENEFITS INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF CASH FLOWS Years ended December 31, 1999 and 1998 Totals 1999 1998 Cash flows from operating activities: Operating income(loss) ($12,931) ($12,799) Change in assets and liabilities: Increase(decrease)in accounts payable (5,806) 5,541 Increase(decrease) in compensated absences payable (3,184) (16,640) Increase(decrease)in payroll deductions payable 7,892 (7,342) Net cash flows from operating activities (14,029) (31,240) Cash flows from investing activities: Investment income 35,380 58,943 Net increase in cash and cash equivalents 21,351 27,703 Cash and cash equivalents-January 1 1,099,748 1,072,045 Cash and cash equivalents-December 31 $1,121,099 $1,099,748 135 Exhibit G-7 CITY OF FRIDLEY, MINNESOTA SELF INSURANCE INTERNAL SERVICE FUND COMPARATIVE BALANCE SHEET December 31, 1999 and 1998 Totals Assets 1999 1998 .� Cash and investments $1,937,905 $1,826,869 Accounts receivable 1,698 - Due from other governments 26 - Total assets $1,939,629 $1,826,869 Liabilities and Fund Equity Current liabilities: Accounts payable $57,833 $4,278 Fund equity: n Contributed capital 1,000,000 1,000,000 Retained earnings: Unreserved 881,796 822,591 Total fund equity 1,881,796 1,822,591 Total liabilities and fund equity $1,939,629 $1,826,869 Alk � I 136 Exhibit G-8 CITY OF FRIDLEY, MINNESOTA SELF INSURANCE INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Years ended December 31, 1999 and 1998 Totals 1999 1998 Operating revenues $188,713 $ - Operating expenses: Supplies and other charges 189,869 123,559 Operating income(loss) (1,156) (123,559) Nonoperating revenues: Investment income 60,361 102,581 Net income (loss) 59,205 (20,978) Retained earnings-January 1 822,591 843,569 Retained earnings-December 31 $881,796 $822,591 137 Exhibit G-9 CITY OF FRIDLEY, MINNESOTA SELF INSURANCE INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF CASH FLOWS Years ended December 31, 1999 and 1998 Totals 1999 1998 Cash flows from operating activities: Operating income(loss) ($1,156) ($123,559) Adjustments to reconcile operating income(loss)to net cash flows from operating activities: Change in assets and liabilities: (Increase)decrease in accounts receivable (1,698) - �► (Increase)decrease in due from other governments (26) - Increase(decrease) in accounts payable 53,555 3,774 Net cash flows from operating activities 50,675 (119,785) Cash flows from investing activities: Investment income 60,361 102,581 ^A` Net increase(decrease) in cash and cash equivalents 111,036 (17,204) Cash and cash equivalents-January 1 1,826,869 1,844,073 Cash and cash equivalents-December 31 $1,937,905 $1,826,869 l- Y 138 Exhibit G-10 CITY OF FRIDLEY, MINNESOTA INFORMATION SYSTEMS INTERNAL SERVICE FUND COMPARATIVE BALANCE SHEET December 31, 1999 and 1998 Totals Assets 1999 1998 Current assets: Cash and investments $820,388 $898,180 Property and equipment, at cost: Property and equipment 643,715 573,892 Less: accumulated depreciation (432,325) (405,418) Net property and equipment 211,390 168,474 Total assets $1,031,778 $1,066,654 Liabilities and Fund Equity Current liabilities: Accounts payable $4,397 $9,679 Fund equity: Contributed capital 830,850 844,830 Retained earnings: Unreserved, undesignated 196,531 212,145 Total fund equity 1,027,381 1,056,975 Total liabilities and fund equity $1,031,778 $1,066,654 I- -.. 139 Exhibit G-11 CITY OF FRIDLEY, MINNESOTA INFORMATION SYSTEMS INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS -� Years ended December 31, 1999 and 1998 Totals 1999 1998 Operating revenues: Charges for services $100,611 $96,931 rte. Operating expenses: General government: •k► Supplies and other charges 57,536 169,366 Depreciation 100,611 96,931 Total operating expenses 158,147 266,297 ,. Operating income(loss) (57,536) (169,366) Nonoperating revenues: '~ Investment income 27,942 47,779 Net income (loss) (29,594) (121,587) Credit arising from transfer of depreciation on contributed assets 13,980 25,789 Retained earnings-January 1 212,145 307,943 Retained earnings-December 31 $196,531 $212,145 A .o ... 140 Exhibit G-12 CITY OF FRIDLEY, MINNESOTA INFORMATION SYSTEMS INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF CASH FLOWS Years ended December 31. 1999 and 1998 Totals 1999 1998 Cash flows from operating activities: Operating income(loss) ($57,536) ($169,366) Adjustments to reconcile operating income(loss)to net cash flows from operating activities: Depreciation 100,611 96,931 Loss on sale of assets - 72,072 Change in assets and liabilities: Increase(decrease)in accounts payable (5,282) 5,536 Net cash flows from operating activities 37,793 5,173 Cash flows from capital and related financing activities: Acquisition of fixed assets (143,527) (34,929) Cash flows from investing activities: Investment income 27,942 47,779 Net increase(decrease)in cash and cash equivalents (77,792) 18,023 Cash and cash equivalents-January 1 898,180 880,157 Cash and cash equivalents- December 31 $820,388 $898,180 141 TRUST AND AGENCY FUNDS Trust and Agency Funds are used to account for assets held by a government in a trustee or agent capacity for individuals, private organizations, other governments or other funds. Expendable Trust Fund The City of Fridley maintains only one Expendable Trust Fund that is used to defray the City administrative costs associated with the issuance of industrial revenue development bonds. Six Cities Watershed Agency Fund This fund was established to account for the collection of taxes received from the County on behalf of the Six Cities Watershed District. Hotel/Motel Agency Fund This fund was established to account for the collection of a three percent tax that has been imposed on all the hotels and motels in the north suburban area. The collection process is administered by the City on behalf of the North Metro Convention and Tourism Bureau, which uses the money to provide information to visitors and create an awareness of the facilities available in this area. Exhibit H-1 CITY OF FRIDLEY, MINNESOTA — TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET December 31, 1999 — With comparative totals for December 31, 1998 Expendable Agency Totals Assets Trust Funds 1999 1998 — Cash and investments $30,265 $11,554 $41,819 $45,565 Receivables: Accounts - 2,926 2,926 3,021 Taxes: — Unremitted - 114 114 217 Delinquent - 201 201 369 Total assets $30,265 $14,795 $45,060 $49,172 Liabilities and Fund Balance Liabilities: Deposits payable $12,591 $ - $12,591 $5,591 Deferred revenue - 201 201 369 — Due to other funds - 200 200 - Due to other governments - 14,394 14,394 17,798 Total liabilities 12,591 14,795 27,386 23,758 — Fund balance: Unreserved, undesignated 17,674 - 17,674 25,414 Total liabilities and fund balance $30,265 $14,795 $45,060 $49,172 144 �' Exhibit H-2 CITY OF FRIDLEY, MINNESOTA INDUSTRIAL DEVELOPMENT REVENUE BOND TRUST FUND COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Years ended December 31, 1999 and 1998 Totals 1999 1998 Revenues: Investment income $1,106 $1,766 Expenditures 8,846 - Excess(deficiency)of revenues over(under)expenditures (7,740) 1,766 Fund balance-January 1 25,414 23,648 Fund balance-December 31 $17,674 $25,414 145 Exhibit H-3 CITY OF FRIDLEY, MINNESOTA - ALL AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Year ended December 31, 1999 Balance Balance _ January 1 Additions Deletions December 31 SIX CITIES WATERSHED AGENCY FUND Assets Cash and investments $11,344 $210 $ - $11,554 - Taxes receivable: Unremitted 217 - 103 114 Delinquent 369 - 168 201 - Total assets $11,930 $210 $271 $11,869 Liabilities - Due to other governments $11,561 $107 $ - $11,668 Deferred revenue 369 - 168 201 Total liabilities $11,930 $107 $168 $11,869 HOTEUMOTEL TAX AGENCY FUND Assets Cash and investments $3,216 $ - $3,216 $ - - Accounts receivable 3,021 - 95 2,926 Total assets $6,237 $0 $3,311 $2,926 Liabilities Due to other funds $ - $200 $ - $200 Due to other governments 6,237 - 3,511 2,726 Total liabilities $6,237 $200 $3,511 $2,926 Balance Balance January 1 Additions Deletions December 31 TOTAL-ALL AGENCY FUNDS Assets Cash and investments $14,560 $210 $3,216 $11,554 Receivables: Accounts 3,021 - 95 2,926 Taxes: Unremitted 217 - 103 114 Delinquent 369 - 168 201 Total assets $18,167 $210 $3,582 $14,795 Liabilities Due to other funds $ - $200 $ - $200 Due to other governments 17,798 107 3,511 14,394 Deferred Revenue 369 - 168 201 Total liabilities $18,167 $307 $3,679 $14,795 146 GENERAL FIXED ASSET ACCOUNT GROUP The General Fixed Asset Account Group is set up to account for long-lived assets not accounted for in an enterprise, trust or internal service fund. Exhibit 1-1 CITY OF FRIDLEY, MINNESOTA COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS December 31, 1999 and 1998 Totals 1999 1998 ., General fixed assets: Land $2,735,987 $2,449,646 Buildings 6,941,385 6,933,651 Improvements other than buildings 24,045,403 21,605,446 Machinery and equipment 5,924,882 5,961,298 Total general fixed assets $39,647,657 $36,950,041 Investment in general fixed assets from: General obligation bonds $1,176,647 $1,176,647 Federal and state aid 7,321,729 4,963,947 General fund revenues 12,043,563 11,646,838 ,,,. Special revenue fund revenues 1,791,613 1,765,090 Special assessments 12,631,649 12,630,140 Private gifts 891,968 840,711 Other sources 3,790,488 3,926,668 "' Total investment in general fixed assets $39,647,657 $36,950,041 148 Exhibit 1-2 ._ CITY OF FRIDLEY, MINNESOTA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY Year ended December 31. 1999 General Fixed General Fixed Assets Assets Function and Activity 1/1/99 Additions Deletions 12/31/99 General government: City manager $3,801 $ - $3,801 $ - Cable TV 97,314 36,179 20,138 113,355 Accounting 24,456 - 4,739 19,717 Elections 101,768 - - 101,768 Management information systems 2,450 - - 2,450 a City clerk/records 70,229 98,224 27,314 141,139 Planning 72,823 1,684 38,662 35,845 Municipal center 3,743,447 150,342 129,831 3,763,958 Total general government 4,116,288 286,429 224,485 4,178,232 Public safety: Public protection 784,814 187,677 158,949 813,542 ^ Fire protection 2,395,009 99,444 205,690 2,288,763 Inspectional services 7,484 - 2,406 5,078 Civil defense 110,526 - 17,053 93,473 .. Total public safety 3,297,833 287,121 384,098 3,200,856 Public works: Engineering 84,237 12,749 28,492 68,494 .. Street improvements 20,078,801 3,013,797 178,285 22,914,313 Traffic signal 298,085 7,905 4,877 301,113 Parks 5,596,881 423,359 447,623 5,572,617 Total public works 26,058,004 3,457,810 659,277 28,856,537 Recreation/naturalist: .- Recreation 2,173,733 18,607 83,845 2,108,495 Naturalist 1,304,183 52,882 53,528 1,303,537 Total recreation/naturalist 3,477,916 71,489 137,373 3,412,032 a Total general fixed assets $36,950,041 $4,102,849 $1,405,233 $39,647,657 a a a 149 Exhibit 1-3 CITY OF FRIDLEY, MINNESOTA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 1999 - Improvements Machinery Other Than and Function and Activity Total Land Buildings Buildings Equipment General government: City manager $ - $ - $ - $ - $ - Cable TV 113,355 - - - 113,355 Accounting 19,717 - - - 19,717 -. Management Information Systems 2,450 - - - 2,450 Elections 101,768 - - - 101,768 City clerk/records 141,139 - - - 141,139 - Planning 35,845 - - - 35,845 Municipal center 3,763,958 17,496 2,843,077 52,961 850,424 Total general government 4,178,232 17,496 2,843,077 52,961 1,264,698 Public safety: Public protection 813,542 - - 154,365 659,177 Fire protection 2,288,763 58,656 649,674 204,238 1,376,195 - Inspectional services 5,078 - - - 5,078 Civil defense 93,473 - - 66,734 26,739 Total public safety 3,200,856 58,656 649,674 425,337 2,067,189 Public works: Engineering 68,494 - - - 68,494 Street improvements 22,914,313 454,180 371,467 20,811,868 1,276,798 Traffic signal 301,113 - - 301,113 - Parks 5,572,617 1,901,053 676,405 1,891,930 1,103,229 Total public works 28,856,537 2,355,233 1,047,872 23,004,911 2,448,521 Recreation/naturalist: Recreation 2,108,495 - 1,923,198 58,135 127,162 Naturalist 1,303,537 304,602 477,564 504,059 17,312 Total recreation/naturalist 3,412,032 304,602 2,400,762 562,194 144,474 Total fixed assets $39,647,657 $2,735,987 $6,941,385 $24,045,403 $5,924,882 150 GENERAL LONG-TERM DEBT ACCOUNT GROUP The General Long-Term Debt Account Group is set up to account for unmatured principal of bonds, warrants, notes, or other forms of long-term indebtedness that are secured by the full faith and credit of the City and is not deemed the primary obligation of any specific enterprise fund of the City. Exhibit J-1 CITY OF FRIDLEY, MINNESOTA COMPARATIVE SCHEDULE OF GENERAL LONG TERM DEBT December 31, 1999 and 1998 a 1999 1998 Amount Available And To Be Provided For The Payment of General Long-Term Debt a Amount available in Debt Service Funds $9,467,255 $9,681,268 Amount to be provided by future taxes 5,287,745 5,368,732 Total available and to be provided $14,755,000 $15,050,000 General long-term debt payable: General long-term debt payable: General obligation special assessment improvement bonds $1,070,000 $1,290,000 General obligation tax increment refunding bonds 13,685,000 13,760,000 Total general long-term debt payable $14,755,000 $15,050,000 a 152 STATISTICAL SECTION r 153 Table 1 CITY OF FRIDLEY, MINNESOTA GENERAL GOVERNMENT EXPENDITURES BY FUNCTION(1) LAST TEN FISCAL YEARS (UNAUDITED) Fiscal General Public Municipal Public Community Recreation/ Debt Year Government Safety Center Works Development(2) Naturalist Service Total 1990 $2,470,439 $3,008,700 $173,260 $2,592,638 $ - $641,432 $15,789,169 $24,675,638 1991 2,566,435 3,233,501 165,968 2,213,994 422,381 655,985 1,866,305 11,124,569 •► 1992 2,857,536 3,320,123 172,664 2,306,970 378,690 702,421 1,884,325 11,622,729 1993 2,612,941 3,413,297 169,493 2,376,990 407,470 720,759 2,207,891 11,908,841 1994 3,206,942 3,552,812 180,104 2,473,128 462,615 780,242 3,495,789 14,151,632 1995 3,954,875 3,821,230 195,949 2,375,472 530,230 850,329 5,636,711 17,364,796 1996 (3) 2,145,143 3,863,105 185,917 2,306,088 535,496 759,457 1,102,010 10,897,216 1997 2,488,576 4,109,283 214,490 2,625,869 572,817 813,356 10,635,507 21,459,898 1998 2,585,116 4,098,048 205,481 2,826,537 648,839 902,161 5,141,866 16,408,048 1999 2,585,352 4,243,682 235,308 2,879,627 721,120 996,584 1,029,680 12,691,353 (1)Includes General,Special Revenue,Capital Projects,Debt Service and Expendable Trust Funds and excludes capital outlay. (2)Prior to 1991,Community Development was included with Public Works. (3)Prior to 1996,the HRA was included as a blended component unit of the City. 155 .r, Table 2 CITY OF FRIDLEY, MINNESOTA .� GENERAL REVENUES BY SOURCE(1) LAST TEN FISCAL YEARS (UNAUDITED) General Property Taxes& Inter- Fiscal Special Licenses governmental Charges For Miscellaneous Year Assessments &Permits Revenue Services Revenue Total 1990 $6,900,089 $408,966 $3,564,426 $630,015 $2,570,467 $14,073,963 1991 7,301,508 425,023 3,445,972 784,962 3,031,408 14,988,873 1992 7,336,538 401,178 4,538,566 842,590 3,027,293 16,146,165 1993 7,521,395 410,135 4,417,835 928,736 3,619,903 16,898,004 1994 6,915,475 528,111 3,808,828 1,038,863 2,393,463 14,684,740 1995 6,966,331 554,182 4,003,592 1,015,048 2,547,453 15,086,606 1996 (2) 4,420,212 828,652 3,986,987 1,299,495 1,841,698 12,377,044 'R 1997 4,312,005 792,622 5,410,058 1,313,705 2,176,543 14,004,933 "'1 1998 4,520,684 846,145 5,603,676 1,514,548 1,965,247 14,450,300 1999 4,475,051 937,084 5,417,384 1,291,819 1,437,381 13,558,719 MIncludes General, Special Revenue, Capital Projects, Debt Service and Expendable Trust Funds. (2)Prior to 1996,the HRA was included as a blended component unit of the City. ~` OK 156 Table 3 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 Collectione)(2) Collected Taxes Collections Tax Levy Taxes 1990 $4,512,647 $4,393,986 97.37% $64,357 $4,458,343 0.9880 :1 $300,854 1991 4,751,465 4,620,032 97.23% 12,633 4,632,665 0.9750 :1 320,081 1992 4,751,465 4,575,242 96.29% 36,480 4,611,722 0.9706 :1 399,739 1993 4,626,465 4,563,742 98.64% 162,911 4,726,653 1.0217 :1 217,536 1994 3,678,665 3,578,604 97.28% 6,764 3,585,368 0.9746 :1 32,416 (3) 1995 3,667,686 3,606,902 98.34% 105,526 3,712,428 1.0122 :1 84,303 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 (')For years prior to 1994,the tax levy and collections include Homestead and Agricultural Aid Credit (HACA). Beginning in 1994, state law required the City to certify its tax levy after subtracting HACA. Total HACA received in 1999 and 1998 was$1,055,038 and$1,063,920, respectively. (2)Excludes collections from properties pledged to tax increment. (3)Taxes were adjusted$105,234 by Anoka County due to abatements, court ordered settlements and corrections of prior errors by the County. 157 CITY OF FRIDLEY, MINNESOTA r ESTIMATED MARKET VALUE AND TAXABLE VALUE OF ALL TAXABLE PROPERTY LAST TEN FISCAL YEARS (UNAUDITED) Fiscal year payable 1990 1991 1992 1993 Assessment year 1989(1) 1990(1) 1991(1) 1992(1) Population,fiscal year 28,335 28,313 28,369 28,287 Real property: Estimated market value $998,231,500 $1,002,812,900 $1,057,532,000 $1,064,099,200 —, Taxable value: Homestead 6,858,848 7,009,982 6,763,333 6,980,161 Excess and nonhomestead 19,728,534 20,147,442 20,555,478 19,609,068 Less fiscal disparities contribution (4,435,055) (4,853,513) (4,684,322) (5,274,175) Less tax increment value (2,368,717) (2,840,385) (3,073,122) (2,536,327) Taxable value 19,783,610 19,463,526 19,561,367 18,778,727 Personal property: Estimated market value 27,116,700 27,606,700 22,917,200 23,184,800 "' Taxable value 1,369,388 1,115,388 1,087,658 1,088,969 Totals: Estimated market value 1,025,348,200 1,030,419,600 1,080,449,200 1,087,284,000 Taxable value 21,152,998 20,578,914 20,649,025 19,867,696 1 Per market value ratios: Taxable value .021:1 .020:1 .019:1 .018:1 Per capita valuations: Estimated market value $36,187 $36,394 $38,086 $38,438 Taxable value 747 727 728 702 Real property: Taxable value Fiscal disparities distribution $3,817,118 $4,079,539 $3,753,494 $3,463,663 Notes: (')The Minnesota Legislature enacted legislation which changed the method of computing property taxes in 1988, 1989, 1990 and 1993. Those changes have been reflected in the computation of the taxable value for taxes payable in 1990 through 1999. --. (2)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, 1998 upon which the 1999 levy was based was$18,813,565. 158 .r Table 4 a 1994 1995 1996 1997 1998 1999 1993(1) 1994(1) 1995(1) 1996(1) 1997(1) 1998(1) 28,104 28,204 28,267 28,419 28,335 28,623 $1,068,474,200 $1,090,023,902 $1,120,412,065 $1,152,674,700 $1,274,348,500 $1,274,348,500 7,008,373 7,374,709 7,784,740 8,199,059 8,307,553 8,556,633 — 19,250,219 19,253,892 19,554,250 20,139,316 18,039,448 16,302,168 (5,000,902) (4,946,278) (4,974,987) (5,147,086) (4,685,134) (4,337,632) (2,581,487) (2,642,692) (2,692,879) (2,760,628) (2,638,263) (2,381,402) a 18,676,203 19,039,631 19,671,124 20,430,661 19,023,604 18,139,767 a 23,308,700 19,952,700 19,576,200 19,576,200 19,164,700 19,315,800 1,071,329 916,940 916,940 916,940 766,322 673,798 a a 1,091,782,900 1,109,976,602 1,139,988,265 1,172,250,900 1,293,513,200 1,293,664,300 19,747,532 19,956,571 20,588,064 21,347,601 19,789,926 18,813,565 .018:1 .018:1 .018:1 .018:1 .015:1 .015:1 a $38,848 $39,355 $40,329 $41,249 $45,651 $45,197 a 703 708 728 751 698 657 a $3,349,769 $2,827,323 $3,007,783 $3,222,432 $3,116,450 $2,941,279 a a r 159 Table 5 CITY OF FRIDLEY, MINNESOTA SIGNIFICANT MINNESOTA TAX POLICIES December 31, 1999 a 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 assessors 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 1999 Class Rates ,_ Residential Homestead First$75,000 1.00% Over$75,000 1.85% Commercial/Industrial First$150,000 2.70% Over$150,000 4.00% Rentals Apartments: 4+ units 2.90% Less than 4 units 2.10% Title II, MFHA, Sect. 8 2.00% Property Tax Refund. Residential property tax credits are indexed by the percentage of net property tax to household income to the extent a homeowners property tax exceeds a percentage of household income. The percentage ranges from 1.2%for incomes below$1,000 up to 4%for incomes of$68,510. The maximum refund amount is$490. 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 75 percent of the increase over 12 percent. The maximum refund is$1,000. Property Tax Deferred. In 1993, the Minnesota legislature enacted a law commonly known as "This Old House" which exempts from the property tax all or a portion of the value of improvements made to homes 35 years of age or older. ,.. Homestead property owners could exclude the property tax on those improvements for 10 years. At the end of 10 years, the value of the improvements is added to the market value of the home in equal installments every five years. There are limits to the dollar amount eligible for the tax exclusion: $25,000 on homes 35 to 69 years old; and $50,000 on homes 70 years or older. Only improvements adding $1,000 or more of market value are eligible. This is effective for improvements AIM made through January 2, 2003. a 161 n CITY OF FRIDLEY, MINNESOTA PROPERTY TAX RATES(1) DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS (UNAUDITED) oft School School School School Fiscal District District District District Year City No. 11 No. 13 No. 14 No. 16(2) " 1990 15.010% 47.893% 41.329% 43.158% 43.334% 1991 15.854% 51.779% 53.249% 49.727% 49.867% "•` 1992 15.474% 56.525% 61.847% 58.025% 49.798% soN 1993 15.390% 63.717% 68.142% 61.406% 58.922% 1994 16.005% 57.161% 69.161% 60.840% 53.355% ..r, 1995 16.098% 61.402% 77.730% 63.296% 58.566% 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% -- Notes: (')Rate is expressed as a tax capacity rate. (2)Vocational/Technical District#916 is included in District No. 16. (3)Six Cities Watershed District is included with School District No. 11 beginning in 1985. (4)Rice Creek Watershed District is included with School District No. 13, 14 and 16. (5)Stoneybrook Creek Subwatershed is included with School District No. 11 and 14. ., 162 Table 6 a a - Total School School School School Special District District District District County Districts No. 11(3'5) No. 13(4) No. 14 4'5) No. 16(2,4) 28.846% 4.399% 95.851% 89.554% 91.383% 92.498% 31.400% 4.767% 103.420% 105.226% 101.704% 101.844% 32.990% 5.119% 109.711% 115.388% 111.566% 103.339% a 32.779% 5.668% 116.910% 122.707% 115.221% 114.723% a 32.680% 5.452% 110.879% 123.277% 114.956% 108.899% 32.765% 6.022% 115.811% 132.593% 118.159% 113.801% 31.036% 6.122% 117.662% 113.880% 125.488% 121.656% 30.091% 6.044% 108.218% 137.656% 119.067% 114.551% a 30.618% 6.603% 107.400% 124.314% 125.225% 114.679% 32.265% 6.603% 114.104% 128.158% 127.049% 120.765% a a a a 163 Table 7 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 - 1990 $604,960 $577,064 95.39% $41,913 $618,977 102.32% $151,658 1991 737,712 652,011 88.38% 28,616 680,627 92.26% 215,764 1992 636,842 573,413 90.04% 68,982 642,395 100.87% 126,221 1993 603,004 553,927 91.86% 68,367 622,294 103.20% 91,010 1994 581,591 536,450 92.24% 31,201 567,651 97.60% 118,994 1995 526,207 478,762 90.98% 8,123 486,885 92.53% 156,253 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 a a 165 CITY OF FRIDLEY, MINNESOTA HISTORY OF CERTIFIED TAX LEVIES AND TAX RATES LAST TEN FISCAL YEARS (UNAUDITED) "" Ornt 1990 1991 1992 .6, Certified tax levies: General Fund $4,421,519 $4,660,276 $4,660,276 General Debt Service Funds - - - ss Capital Improvement Fund 87,689 87,689 87,689 Subtotal 4,509,208 4,747,965 4,747,965 Enterprise Fund - - - Agency Fund 3,439 3,500 3,500 Total $4,512,647 $4,751,465 $4,751,465 ii, Tax Capacity Rate: General Fund 12.192% 14.705% 15.548% ..., General Debt Service Funds 0.000% 0.000% 0.000% Capital Improvement Fund 0.300% 0.290% 0.284% Enterprise Fund 0.000% 0.000% 0.000% ... I Subtotal 12.492% 14.995% 15.832% Agency Fund 0.052% 0.015% 0.022% Total 12.544% 15.010% 15.854% Notes: °beginning in 1994,the State law required the City to certify its tax levy after subtracting Homestead and r Agricultural Aid Credit(HACA). Total HACA for 1999 and 1998 was$1,055,038 and $1,063,920, respectively. Awk 166 .. Table 8 1993 1994(1) 1995(1) 1996(1) 1997(1) 1998(1) 1999(1) $4,535,276 $3,603,266 $3,592,295 $3,821,853 $3,806,950 $3,921,159 $3,947,133 _. 87,689 72,689 72,689 72,689 72,689 72,689 72,689 4,622,965 3,675,955 3,664,984 3,894,542 3,879,639 3,993,848 4,019,822 - - - - 8,900 8,900 8,900 3,500 2,710 2,702 3,087 3,073 7,822 6,197 $4,626,465 $3,678,665 $3,667,686 $3,897,629 $3,891,612 $4,010,570 $4,034,919 15.153% 15.076% 15.778% 16.258% 15.399% 16.807% 17.995% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.300% 0.314% 0.320% 0.307% 0.294% 0.312% 0.331% a.., 0.000% 0.000% 0.000% 0.000% 0.625% 0.516% 0.687% 15.453% 15.390% 16.098% 16.565% 16.318% 17.635% 19.013% 0.021% 0.022% 0.022% 0.024% 0.023% 0.067% 0.049% 15.474% 15.412% 16.120% 16.589% 16.341% 17.702% 19.062% 167 Table 9 "' 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 1990 28,335 $21,152,998 $15,765,000 $ - $15,765,000 $ - $ - $ - 1991 28,313 20,578,914 17,715,000 - 17,715,000 - - - 1992 28,369 20,649,025 22,470,000 - 22,470,000 - - - NM 1993 28,287 19,867,696 21,500,000 - 21,500,000 - - - 1994 28,104 19,747,532 19,600,000 - 19,600,000 - - - 1995 28,204 19,956,571 19,075,000 - 19,075,000 - - - 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 - - - "' Notes: (1>The Minnesota Legislature enacted legislation in 1988 and 1989 which changed the method of computing property taxes. Those changes have been reflected in the computation of the taxable '1 value for taxes payable in 1989-1998. ■ ✓ Oft ✓ r r r 169 Table 10 Page 1 of 2 CITY OF FRIDLEY, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN December 31, 1999 (UNAUDITED) Market Value $1,274,348,500 (A)Debt Limit 2% of Market Value $25,486,970 Amount of Debt Applicable to Debt Limit: Total Debt $20,080,000 (B)Deductions: Tax Increment Redevelopment Bonds $14,015,000 Special Assessment Bonds 740,000 Revenue Bonds 5,325,000 20,080,000 Total Amount of Debt Applicable to Debt Limit - •� Legal Debt Margin $25,486,970 Notes: (A)M.S.A. Section 475.53(see following page) ask (B)M.S.A. Section 475.51 (see following page) .v. 170 Table 10 Page 2 of 2 CITY OF FRIDLEY MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED) December 31, 199. 9 (UNAUDITED) 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 r. 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. 171 Table 11 CITY OF FRIDLEY, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT AND COMPARATIVE DEBT RATIOS December 31, 1999 (UNAUDITED) Net Percent of General Debt Debt Bonded Gross Service Net Applicable Debt Governmental Unit Debt Funds Debt to City Per Capita Direct and overlapping debt: Direct debt: City of Fridley $20,080,000 $9,000,682 $11,079,318 100.00% $11,079,318 Overlapping debt: School Districts: No. 11 126,528,072 45,198,255 81,329,817 1.60% 1,301,277 No. 14 17,965,000 438,881 17,526,119 100.00% 17,526,119 No. 16 30,235,000 2,485,017 27,749,983 36.80% 10,211,994 Metro Council 638,422,449 78,667,789 559,754,660 1.19% 6,661,080 Anoka County 84,210,000 8,553,770 75,656,230 18.04% 13,648,384 Vocational/Technical District No. 916 21,960,000 555,776 21,404,224 2.21% 473,033 Overlapping debt 919,320,521 135,899,488 783,421,033 49,821,888 Total direct and overlapping debt $939,400,521 $144,900,170 $794,500,351 $60,901,206 .� 172 Table 12 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 ExpendituresM Expenditure 4. - 1990 $14,720,000 $1,069,169 $15,789,169 $24,675,638 .6399:1 1991 685,000 1,181,305 1,866,305 11,124,569 .1678:1 ..` 1992 715,000 1,169,325 1,884,325 11,662,729 .1616:1 1993 925,000 1,270,590 2,195,590 11,908,841 .1844:1 1994 2,305,000 1,147,551 3,452,551 14,151,632 .2440:1 1995 4,530,000 1,079,838 5,609,838 17,364,796 .3231:1 1996 175,000 896,011 1,071,011 10,897,216 .0983:1 1997 9,675,000 897,930 10,572,930 21,459,898 .4927:1 .► 1998 4,310,000 796,329 5,106,329 16,408,048 .3112:1 1999 295,000 729,889 1,024,889 12,691,353 .0808:1 Notes: (')Includes General, Special Revenue, Debt Service, 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. r f— 173 Table 13 CITY OF FRIDLEY. MINNESOTA la... 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 w 1990 $3,049,658 $3,213,227 ($163,569) $ - $ - $ - $ - 1991 3,115,437 3,408,068 (292,631) - 148,449 148,449 - 1992 3,111,284 3,764,686 (653,402) - 131,761 131,761 - 1993 3,557,088 4,360,448 (803,360) 45,000 129,944 174,944 - 1994 3,985,612 4,534,059 (548,447) 80,000 127,301 207,301 - 1995 4,476,900 5,283,552 (806,652) 85,000 142,943 227,943 - 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 5,325,000 281,975 5,606,975 0.03 Notes: (1)Total operating revenue. (2)Total operating expenses including depreciation. h o. A. mak 174 Table 14 CITY OF FRIDLEY, MINNESOTA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS (UNAUDITED) Annual Per Average Fiscal Capita Median School Unemployment Year Population') Income Age(4) Enrollment(3) Rate(5) 1990 28,335 (2) 16,431 32.6 4,371 4.5% 1991 28,313 16,347 32.6 4,392 4.5% 1992 28,369 16,055 32.6 4,361 4.1% 1993 28,287 15,261 30.3 4,200 4.4% 1994 28,104 15,535 30.5 3,942 3.4% ~ 1995 28,204 17,642 31.2 3,960 3.2% 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% Notes: (1)Estimated by Metropolitan Council. (2)1990 Population Report-Bureau of the Census (3)Estimated -excludes Grace Parochial High School as it is not supported by property tax dollars. (4)1991 - 1994 amounts for Anoka County. (5)Minnesota Department of Economic Security-Twin Cities Labor Market ( National Planning Data Corporation 4r 175 Table 15 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) Total 1990 83 $12,883,850 349 $3,321,362 $1,025,348,200 $177,123,840 $1,202,472,040 1991 75 11,946,068 360 2,525,711 1,030,419,600 177,123,840 1,207,543,440 1992 73 10,329,409 407 2,873,240 1,080,449,200 173,900,300 1,254,349,500 1993 69 6,778,632 474 3,536,547 1,087,284,000 177,929,400 1,265,213,400 1994 115 17,510,011 711 6,365,829 1,091,782,900 191,559,200 1,283,342,100 1995 116 18,280,651 608 7,618,320 1,109,976,602 185,043,100 1,295,019,702 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 Note: (')Non-taxable property is reevaluated by the city assessors every six years asIt air Alm 176 Table 16 CITY OF FRIDLEY, MINNESOTA PRINCIPAL TAXPAYERS December 31, 1999 JUNAUDITED) Fiscal Year 1999 Percent 1998 of Total Taxable Taxable Rank Taxpayer Type of Business Valuation Valuation 1 Dayton Hudson Target discount store,warehouse and office $33,627,200 2.95% 2 Medtronic, Inc. Electro-medical devices 27,419,700 2.41% 3 Burlington Northern Railroad Operating property 13,185,000 1.16% 4 Cummins Power(Onan) Portable electric generators 13,125,100 1.15% 5 Maurice Fillister Georgetown apartments 11,768,900 1.03% 6 Shamrock Investments Murphy Warehouse 11,669,800 1.02% 7 Northwest Racquet&Swim Club Health and Tennis Club 10,955,800 0.96% 8 Retail Trust IV Wal-Mart/Sam's Club discount stores 10,442,600 0.92% 9 Lamaur Cosmetics 9,598,500 0.84% 10 East River Road Business Center Business and retail complex 6,258,100 0.55% Total $148,050,700 12.99% 177 Table 17 CITY OF FRIDLEY, MINNESOTA INSURANCE COVERAGE December 31, 1999 (UNAUDITED) Municipal Liability: Each occurance limit $750,000 •� Products/completed operations aggregate limit 750,000 Failure to supply annual aggregate limit 750,000 EMF annual aggregate limit 1,500,000 Fire damage limit 50,000 Medical expense limit occurance/aggregate 1,000/10,000 Limited pollution liability 750,000 Lead or asbestos claim limit 200,000 Land use regulation limit 1,000,000 Year 2000 claim limit 750,000 Municipal Property&Crime: Property 28,174,706 Mobile Property Scheduled Over$25,000 1,222,870 Unsched$25,000& Less 480,708 Asbestos Clean-up,Abatement& Removal 250,000 Errors 500,000 Valuable Papers&Records 500,000 Bonds 350,000 Automobile Liability: Liability 750,000 Personal Injury Protection Mn Statutory Coverage Uninsured/Underinsured Motorist 750,000 Comp/Collision Actual Cash Value 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 Liquor Liability: General total limit 2,000,000 Products&completed work total limit 2,000,000 Personal injury each person limit 1,000,000 Advertising injury each person limit 1,000,000 Each event limit 1,000,000 Medical expense limit 5,000 Boiler&Machinery: Equipment breakdown limit 3,000,000 Accident Plan for Volunteers: Acciental death/permanent impairment 100,000 Weekly disability (max of 26 weeks) 400 Medical Benefit 1,000 Total limit of liability per accident 500,000 Worker's compensation: Statutory 178 Table 18 Page 1 of 3 CITY OF FRIDLEY. MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION December 31. 1999 (UNAUDITED) Date of Incorporation (Village 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-State and Local General December 14, 1999 Registered voters 16,304 Number of votes cast 3,373 Percent(%)of registered voters voting 21.0% Population: 1950-Federal Census 3,796 1960-Federal Census 15,182 1965-Federal Census 24,789 1970-Federal Census 29,233 1980-Federal Census 30,228 1990-Federal Census 28,335 1992-Estimated by Metropolitan Council 28,369 1993-Estimated by Metropolitan Council 28,287 1994-Estimated by Metropolitan Council 28,104 1995-Estimated by Metropolitan Council 28,204 1996-Estimated by Metropolitan Council 28,267 1997-Estimated by Metropolitan Council 28,419 1998-Estimated by Metropolitan Council 28,335 1999-Estimated by Metropolitan Council 28,623 Permanent Employees--As of December 31 1988 126 1989 126 1990 126 1991 137 1992 137 — 1993 135 1994 140 1995 136 1996 136 1997 136 1998 140 1999 142 179 Table 18 Page 2 of 3 CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED) December 31, 1999 (UNAUDITED) Fire protection: — Number of stations 3 Volunteer firefighters 28 Full-time firefighters 6 Fire rating Class 3 Police protection: Number of stations 1 Number of sworn officers 36 Number of street lights 1,054 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 126.09 Trunk highways 10.79 County roads 14.56 Sidewalks and bikeways 14.48 Miles of sewer: Storm 46.62 Sanitary 103.00 Miles of watermains 112.93 Municipal water system source City of Fridley Water Plant (13 wells)--capacity of 15 million gallons per day Number of water connections December 31, 1999 8,165 Daily average consumption (gallons) 5.2 million gallons .- Elevated stored capacity 3.5 million gallons Water storage reservoirs 3.0 million gallons Stand pipe 1.5 million gallons Number of fire hydrants 1,084 Municipal sewer system: Disposal --through Metropolitan Council Environmental Service Number of connections December 31, 1999 8,173 Average daily flow(includes infiltration/inflow) 4.78 million gallons 180 Table 18 Page 3 of 3 CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED) December 31, 1999 (UNAUDITED) Parks and recreation areas: Developed 420 Acres Undeveloped 262 Acres Total 682 Acres — City and County Parks Schools Total Number of: Hockey rinks 6 2 8 General skating rinks 10 2 12 Playgrounds 29 4 33 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 11 181 Table 19 CITY OF FRIDLEY, MINNESOTA GENERAL INFORMATION December 31, 1999 (UNAUDITED) Location -Transportation The City of Fridley, with a total land area of eleven square miles and an estimated population of 28,623, 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 Convalescent Home, the Fridley Medical Center, and Lynwood Health Care Center. Education Fridley 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 155 certified personnel in the education of about 2,612 students. Grace Parochial High School has an ,.. enrollment of approximately 1,037. 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 922 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. Larger Employers Larger employers in the City of Fridley include: Full-Time Employer Product or Service Employees Medtronic, Inc. Electro-medical devices and 4,250 headquarters Cummins Portable generators, electronic 1,530 .., equipment United Defense Systems Pumps and naval ordinance 1,321 Minco Products Electronic devices 685 Kurt Manufacturing Machine parts 650 McGlynn's Bakery 463 Parsons Electric Electric contractor 460 Unity Hospital Medical services 440 Burlington Northern Railroad Railroad company 435 *- Target Stores,Warehouse Discount department store 415 alma 182