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2000 CAFR COMPREHENSIVE ANNUAL FINANCIAL REPORT r,„„. -11/2.) CITY OF FRIDLEY MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2000 CITY OF FRIDLEY, MINNESOTA Comprehensive Annual Financial Report — December 31, 2000 a — — Prepared by: Finance Department — Richard D. Pribyl Finance Director CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2000 TABLE OF CONTENTS EXHIBIT PAGE INTRODUCTORY SECTION Elected and Appointed Officials 3 City Administrative Organizational Structure 2000 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 27 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 34 Combined Statement of Revenues, Expenditures and Changes in Fund Balances- •— Budget and Actual -General, Special Revenue and Budgeted Capital Projects Fund Types A-3 36 Combined Statement of Revenues, Expenses and Changes in Retained Earnings-All Proprietary Fund Types A-4 38 Combined Statement of Cash Flows-All Proprietary Fund Types A-5 39 Notes to Financial Statements 41 Financial Statements of Individual Funds: General Fund: Comparative Balance Sheet B-1 70 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual B-2 71 Schedule of Revenues and Other Financing Sources- Budget and Actual B-3 72 Schedule of Expenditures and Other Financing Uses- Budget and Actual B-4 75 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT .� YEAR ENDED DECEMBER 31, 2000 TABLE OF CONTENTS EXHIBIT PAGE Special Revenue Funds: Combining Balance Sheet C-1 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balance C-2 82 Cable TV Fund: Comparative Balance Sheet C-3 84 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual C-4 85 Grant Management Fund: ..� Comparative Balance Sheet C-5 86 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual C-6 87 Solid Waste Abatement Fund: Comparative Balance Sheet C-7 88 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual C-8 89 HRA Reimbursement Fund: Comparative Balance Sheet C-9 90 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual C-10 91 Drug and Gambling Forfeiture Fund: Comparative Balance Sheet C-11 92 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual C-12 93 Housing Revitalization Special Revenue Fund: Comparative Balance Sheet C-13 94 -� Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual C-14 95 ,� CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2000 TABLE OF CONTENTS EXHIBIT PAGE Special Revenue Funds: (continued) Chemical Assessment Team Fund: Comparative Balance Sheet C-15 96 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual C-16 97 F. C. C. Donations Fund: Comparative Balance Sheet C-17 98 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual C-18 99 Police Activity Fund: Comparative Balance Sheet C-19 100 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual C-20 101 Debt Service Funds: Combining Balance Sheet D-1 104 Combining Statement of Revenues, Expenditures and Changes in Fund Balance D-2 105 Capital Projects Funds: Combining Balance Sheet E-1 109 Combining Statement of Revenues, Expenditures and Changes in Fund Balance E-2 110 Capital Improvements Fund: ^ Comparative Balance Sheet E-3 112 — Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual E-4 113 Enterprise Funds: Combining Balance Sheet F-1 116 Combining Statement of Revenues, Expenses and Changes in Retained Earnings F-2 117 Combining Statement of Cash Flows F-3 118 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2000 TABLE OF CONTENTS EXHIBIT PAGE Enterprise Funds: (continued) Liquor Fund: Comparative Balance Sheet F-4 119 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings F-5 120 Comparative Statement of Cash Flows F-6 121 Public Utilities Fund: Comparative Balance Sheet F-7 122 Comparative Statement of Revenues, Expenses and .... Changes in Retained Earnings F-8 124 Comparative Statement of Cash Flows F-9 125 Internal Service Funds: Combining Balance Sheet G-1 128 Combining Statement of Revenues, Expenses and Changes in Retained Earnings G-2 129 -. Combining Statement of Cash Flows G-3 130 — Employee Benefits Fund: Comparative Balance Sheet G-4 131 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings G-5 132 Comparative Statement of Cash Flows G-6 133 Self Insurance Fund: Comparative Balance Sheet G-7 134 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings G-8 135 Comparative Statement of Cash Flows G-9 136 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2000 TABLE OF CONTENTS a EXHIBIT PAGE Internal Service Funds: (continued) Information Systems Fund: Comparative Balance Sheet G-10 137 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings G-11 138 Comparative Statement of Cash Flows G-12 139 Trust and Agency Funds: — Combining Balance Sheet H-1 142 Industrial Development Revenue Bond Trust Fund: Comparative Statement of Revenues, Expenditures and Changes in Fund Balance H-2 143 All Agency Funds: — Combining Statement of Changes in Assets and Liabilities H-3 144 — General Fixed Assets Account Group: Comparative Schedule of General Fixed Assets I-1 146 Schedule of Changes in General Fixed Assets- By Function and Activity 1-2 147 Schedule of General Fixed Assets- By Function and Activity 1-3 148 General Long-Term Debt Account Group: — Comparative Schedule of General Long Term Debt J-1 150 STATISTICAL SECTION: General Government Expenditures by Function - Last Ten Fiscal Years 1 153 General Revenues by Source- Last Ten Fiscal Years 2 154 Certified Property Tax Levies and Collections- Last Ten Fiscal Years 3 155 Estimated Market Value and Taxable Value of All Taxable Property - Last Ten Fiscal Years 4 156 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2000 TABLE OF CONTENTS EXHIBIT PAGE STATISTICAL SECTION: (continued) — Significant Minnesota Tax Policies 5 159 Property Tax Rates-Direct and Overlapping Governments- Last Ten Fiscal Years 6 160 Special Assessment Levies and Collections- Last Ten Fiscal Years 7 163 History of Certified Tax Levies and Tax Rates- Last Ten Fiscal Years 8 164 Ratio of Net General Bonded Debt to Taxable Value and Net Bonded Debt Per — Capita- Last Ten Fiscal Years 9 167 Computation of Legal Debt Margin 10 168 — Computation of Direct and Overlapping Bonded Debt and Comparative Debt Ratios 11 170 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Government Expenditures- Last Ten Fiscal Years 12 171 Revenue Bond Coverage- Last Ten Fiscal Years 13 172 Demographic Statistics-Last Ten Fiscal Years 14 173 Construction and Property Value- Last Ten Fiscal Years 15 174 Principal Taxpayers 16 175 — Insurance Coverage 17 176 Miscellaneous Statistical Information 18 177 General Information 19 180 — INTRODUCTORY SECTION .. a a .. 1 CITY OF FRIDLEY, MINNESOTA —. ELECTED AND APPOINTED OFFICIALS DECEMBER 31,2000 — ELECTED OFFICIALS Term of Office Expires December Effective January,2000 Mayor Nancy J. Jorgenson 2000 Councilmember At Large Robert R. Barnette 2000 Councilmember, Ward I Steven E. Billings 2002 Councilmember, Ward II Richard P. Wolfe 2002 Councilmember, Ward Ill Ann R. Bolkcom 2002 Effective January, 2001 Mayor Scott J. Lund 2004 Councilmember At Large Robert R. Barnette 2004 Councilmember, Ward I Steven E. Billings 2002 Councilmember, Ward II Richard P. Wolfe 2002 _ Councilmember, Ward III 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 Jon H. Haukaas .� Director of Recreation and Natural Resources Jack G. Kirk Director of Community Development Barbara J. Dacy Director of Human Resources Deborah K. Dahl — 3 r CITY ADMINISTRATIVE ORGANIZATIONAL STRUCTURE 2000 Total Authorized Postions(138) CITY MANAGER(4) City Manager Secretary to the City Manager Management Assistant Video specialist FINANCE (21) POLICE(49) HUMAN RESOURCES(2) Finance Director-Treasurer Public Safety Director- Human Resources Director Secretary Emergency Mgmt 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 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 FIRE(7) Fire Chief Secretary Dep Fire Chief (4) Firefighter 4 CITY ADMINISTRATIVE ORGANIZATIONAL STRUCTURE 2000 (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 iti CITY OF FRIDLEY FRIDLEY MUNICIPAL CENTER•6431 UNIVERSITY AVE. N.E.FRIDLEY,MN 55432•(612)571-3450•FAX(612)571-1287 May 24, 2001 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 ended December 31, 2000. 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 Department 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, William W. Burns City Manager 7 IMM ■•■• Ili CITY OF FRIDLEY FRIDLEY MUNICIPAL CENTER•6431 UNIVERSITY AVE.N.E. FRIDLEY,MN 55432•(612)571-3450•FAX(612)571-1287 May 24, 2001 '- Dr. William W. Burns, City Manager Mayor Scott J. Lund and Council Members Fridley, Minnesota 55432 Dear Dr. Burns, Mayor Lund and Council Members: The Comprehensive Annual Financial Report of the City of Fridley, Minnesota, for the fiscal year ended December 31, 2000, 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 1999. It is our belief that the accompanying fiscal year 2000 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 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 a first ring suburban community with a 2000 Census population of 27,449. The City is located 10 minutes north of downtown Minneapolis and 25 minutes northwest of downtown St. Paul. Incorporated in July of 1949, Fridley covers 11 square miles of area and is now home to some of the most important industries in the Midwest, nation, and the world. An industrial spine around the rail corridor has served the City well and has provided the City with nearly as many jobs as the number of citizens who reside in the community. Fridley is home to the largest number of employees in Anoka County. LOCAL ECONOMY Minneapolis - St. Paul and the surrounding metropolitan area has continued to experience a strong economy. Unemployment remains relatively low, and the market place for local products and services remains strong. Continued long-term growth is anticipated as Fridley continues to aggressively pursue redevelopment opportunities. The City experienced a sharp increase in building valuation with the development of Phase I of the Medtronic Inc. World Headquarters Campus. The average valuation in the three prior years was $37 million. With Medtronic, the 2000 valuation reached $102,840,549. Phase I of the 1,000,000 square foot campus was nearly completed by the end of the year 2000. With Phase I, came 520,000 square feet of new building valuation and a showplace setting along the intersection of Highway 1-694 and Highway 65. The estimated market value of the 3-phase project will be well over$100 million. At build-out of the campus, an additional 3,000 jobs will have been added to the City's already impressive employment figures. The existing Rice Creek Corporate campus is now being modified internally to function as the World Headquarters for Medtronic Inc.'s Cardiac Division. MAJOR INITIATIVES During the year 2000, the City continued its focus on the quality of its housing stock and enjoyed much success with its programs. The City loaned citizens nearly a quarter of a million dollars more in 2000, than it loaned in 1999. With programs such as its 5% and 6% Loan programs, citizens with qualifying incomes were given an opportunity to enjoy the benefits of these loans for their home improvement projects. A total of forty-eight loans were given with a total dollar amount of$586,755.91. Through the Community Development Block Grant Program, six loans were processed totaling $62,898.83. A smaller number of people, whose income would not qualify them for any other loan, saw the benefits of the City's Last Resort Loan Program. This program had two loans granted and those loans totaled $18,406.00. In our Hyde Park Program, which recognizes the special needs of some of the City's oldest housing stock, one loan was given for a total of$4,000. Finally, under our MFHA Home Energy, Home Improvement and Community Fix-up Programs, ten loans were given totaling $92,552. Staff is very encouraged by the success of the programs and the enthusiasm of the public regarding the City's emphasis on re-investment in its community's housing stock. 11 CITY OF FRIDLEY,MINNESOTA .o. GENERAL INFORMATION (CONTINUED) As a fully developed community, the City's number of new housing starts is low and may be .. unimpressive when compared to edge developments in the region; however, the City is proud of those housing starts it is seeing and is equally as proud of the residential re-investment that is occurring. In 2000, the Building Department issued 1,040 permits. Permits were issued for 10 residential single family units, 1 townhouse unit, 1 multiple dwelling unit, 13 residential garages, and 811 residential alteration or additions. In the area of commercial and industrial development, 204 permits were issued ranging from 11 new starts to 117 wrecking and moving permits, with the remainder of activity including alterations and business sign applications. Internally, the 2001 budget work sessions were relatively free from major budgetary issues. The gap between revenues and expenditures decreased in the 2001 budget from the 2000 budget. This was mainly due to increasing property tax revenue 4.2%, and increasing transfers from other funds to the .. General Fund. Much of the discussion at the work sessions focused on major expenditure proposals rather than budget detail. The budget sessions ended with an increase in property taxes and the planned use of $595,184 of reserves resulting in a balanced 2001 budget that Council adopted in December. PLANS FOR THE FUTURE The future for the City of Fridley may be filled with change and restructuring depending on legislative actions to change tax structure, municipal redevelopment methods, and revenue streams. Traditional level of service is a concern as the City looks at potential reductions in revenue from traditional redevelopment practices. The City continues to applaud the efforts of the legislature to get a handle on �. unfunded state mandates, and the City will continue to investigate alternatives that will allow creative solutions to the delivery of services. In May of 2001, City officials will attend the groundbreaking for a 28-unit town home development at a Key entry point to the City along University Avenue. Appropriately named Gateway East, the development will provide yet another alternative to comfortable, convenient living in the City of Fridley. With individual unit pricing at$150,000 to$170,000, staff is excited about the project. It will not only fill a .. market segment that needs filling, but it will also provide a bright new image as motorist travel through the community. Beyond the Gateway East development, one of the most significant redevelopment projects in the City's history may be the redevelopment of 20 acres of existing industrial parcels near the intersection of Highway 65 and 73rd Avenue in Fridley. If successful negotiations occur and the funding sources align, nearly 250,000 square feet of new industrial development will be built where contaminated industrial sites now exist. Finally, a proposal by the North Star Corridor Development Authority proposes to connect Fridley to the region through the use of the existing Burlington Northern Santa Fe rail lines and new convenient passenger rail cars. The proposal would offer an alternative mode of transportation for residents who are commuting into Minneapolis or who now commute from as far north as Rice, Minnesota. If the Fridley City Council ultimately approves the proposal, additional neighborhood and rail compatible development may occur on a remaining acreage near the station site. Implementation of an imaging system continued during 2000. This project will increase the availability of data and the efficiency in which City staff can access it and respond to resident's requests. ,1 Significant projects budgeted for 2001 in the five year capital improvement plan include: The re- carpeting of the Municipal Center's upper and lower levels; electrical re-wiring of Commons Park; a major street reconstruction project on some streets within the Hillcrest neighborhood; and the annual well, reservoir and pump house maintenance programs. 12 .... CITY OF FRIDLEY,MINNESOTA FINANCIAL INFORMATION INTERNAL CONTROLS In developing and improving the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition and the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control `– should not exceed the benefits likely to be derived and the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of the proper recording of financial transactions. BUDGETARY CONTROLS A complete budgetary system of accounts is maintained for the General and Special Revenue Funds. Budgetary control is maintained in compliance with the City Charter Requirements. The Charter — provides that it is the duty of the City Manager to strictly enforce the provisions of the budget. The management policy of the City is such that the existence of a particular item or appropriation in the approved budget does not mean that it will or must be automatically expended. It is the policy of the - City to control budgets at the expenditure category level. Budget adjustments between City divisions are made upon the approval of a resolution by the City Council. The City Charter provides that the City Council shall not have power to increase the total amount of the budget, whether by insertion of new items or otherwise, beyond the estimated revenue unless the actual revenue exceeds such revenue estimates, and in that event not beyond such actual revenue. There is a constant review process. Expenditures are not approved until it has been determined that 1) the expenditure is necessary, 2) adequate funds have been appropriated, and 3)funds are available. CASH MANAGEMENT All temporary cash surpluses during the year are invested in various securities 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 7.1%. 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, 2000 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 $18,335,000. Of this outstanding debt, $845,000 represents special assessment debt with government commitment, $13,610,000 represents general obligation tax increment refunding bonds, and $3,880,000 represents general obligation water, sewer and storm water revenue bonds. /.111 The City of Fridley has, since 1982, maintained a credit rating of Aa1 on its long-term bonds. 13 CITY OF FRIDLEY,MINNESOTA FINANCIAL INFORMATION (CONTINUED) FISCAL DISPARITIES The commonly referred to "Fiscal Disparity Law" was adopted by the Legislature in 1971. The area of 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. 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, 2000. "" The most significant changes in revenues from the prior year were increases in licenses and permits, intergovernmental revenue, and investment income. Licenses and permits increased by $339,531 due to the increase in building permits issued in 2000. Intergovernmental revenue increased by$1,751,982 due in large part to the $2,242,586 in residual assets refunded to the City from the Public Employees Retirement Association's police consolidation account. The investment income increase of $803,489 was due to increased yields, as well as having more money to invest during the year. Percent of Increase/ Revenues Amount Total (Decrease) Taxes and special assessments $4,529,716 27.45% $54,665 Licenses and permits 1,276,615 7.74% 339,531 Intergovernmental 7,169,366 43.45% 1,751,982 Charges for services 1,391,203 8.43% 99,384 Fines and forfeits 197,132 1.19% 1,334 Investment income 1,607,257 9.74% 803,489 Miscellaneous 330,150 2.00% (107,665) Total $16,501,439 100.00% $2,942,720 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, 2000. The most significant change in expenditures from the prior year was a decrease in capital outlay. This decrease was primarily due to the unusually high capital outlay figure in 1999 that came about as a result of the largest street project in the history of the City. Imk 14 CITY OF FRIDLEY,MINNESOTA FINANCIAL INFORMATION (CONTINUED) Percent of Increase/ Expenditures Amount Total (Decrease) Current: General $2,888,061 19.31% $302,709 Public safety 4,392,025 29.36% 148,343 Municipal center 225,114 1.51% (10,194) Public works 2,661,927 17.80% (217,700) Community development 775,312 5.18% 54,192 Recreation and naturalist 1,031,174 6.89% 34,590 Debt service 1,058,772 7.08% 29,092 Capital outlay 1,924,662 12.87% (1,828,919) Total $14,957,047 100.00% ($1,487,887) 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. .o 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 municipal liquor operations. 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. During 2000, the City operated three liquor stores, one at 6289 Highway 65, one next to the Fridley Cub Foods Store, and the other at the Holly Shopping Center. In February of 2001, in order to increase efficiencies, the store at the Holly Shopping Center was closed. The City owns the store at the Highway 65 location and currently leases space for the other store. 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 $1,940,508 on December 31, 2000 as compared to $1,956,940 at the close of the prior fiscal year. Income before operating transfers decreased from $207,625 in 1999 to $183,568 in 2000. This decrease is primarily due to the expense involved in operating a third store. Public Utilities Fund This fund accounts for the operation and financing of the City-owned sewer and water systems.. 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 15 CITY OF FRIDLEY,MINNESOTA FINANCIAL INFORMATION (CONTINUED) Public Utilities Fund and depreciated. Retained earnings on December 31, 2000 were $14,999,268 compared to$14,175,791 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 that allow us to directly benefit from our good experience rating. In the future an analysis will be made of the feasibility of self insuring all or a portion of other policies. In 1990, $1,000,000 was transferred from the General Fund to the Self Insurance Fund. 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 pays claims when an individual exceeds$20,000 in claims during a twelve-month period. OTHER INFORMATION PENSIONS City of Fridley employees are covered by one of three pension plans: 1) Fridley Fire Relief Association for Volunteer Firemen. 2) Public Employees Retirement Police and Fire Plan, covering the City's full-time Firemen and Police Officers. 3) Coordinated Public Employees Retirement Plan, which covers other City civilian employees. The employees covered by the Coordinated 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 Office 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, 1999. 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. 16 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, Paul Eisenmenger, 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, 2LD4 Richard D. Pribyl Alan D. Folie Finance Director Assistant Finance Director 17 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, 1999 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 financ reports (CAFRs) achieve the highest standards in government accounting and financial reporting. `00 oFF,�� C� � 'OF NRTO STATES f ht AND M CANADA / t y won= s "resident t SEAL e � CMCA64 y#Tiz;a/rid& Executive Director 4 19 FINANCIAL SECTION IMO I- a somi omm MEI 21 AUDITOR'S OPINION HLB 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 financial statements of the City of Fridley, Minnesota, as of and for the year ended December 31, 2000 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 auditing standards and the standards generally accepted in the United States of America 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 financial 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, 2000, and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States of America. _ In accordance with Government Auditing Standards, we have also issued a report dated May 8, 2001 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 MLR International.A world-wide organization of accounting firms and business advisers. 23 .-S Our audit was performed for the purpose of forming an opinion on the general purpose fmancial 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 financial 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 financial statements taken as a whole. - May 8, 2001 ike 1:4444e, 444/344A 4/7. HLB TAUTGES REDPATH, LTD. Certified Public Accountants 24 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 UNIT December 31,2000 Governmental Fund Types Special Debt Capital General Revenue Service Projects .. Assets Cash and investments $6,816,089 $2,886,543 $8,556,709 $5,400,729 Restricted assets _ - _ - Receivables: Accounts 40,835 59,180 - - Taxes 171,343 - - 4,940 — Special assessments 10,250 - 1,538,566 67,484 Mortgage - - _ - Interest 327,791 - - - _ Loan receivable 6,300 - - - Loan receivable from component unit - - 757,662 - Developer note 75,548 - - - Due from other funds 60,014 - - - — Interfund loan receivable - - - - Due from component unit 12,502 1,362 - - Due from other governments 57,648 196,659 - 62,594 — Inventories, at cost 38,513 - - - Prepaid items - - - - 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 $7,616,833 $3,143,744 $10,852,937 $5,535,747 I See Accompanying Notes to Financial Statements 27 CITY OF FRIDLEY, MINNESOTA COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNIT December 31,2000 Fiduciary Proprietary Fund Types Fund Types — Internal Trust and Enterprise Service Agency Assets Cash and investments $8,442,668 $3,973,709 $50,042 Restricted assets - - - Receivables: Accounts 1,410,146 21,602 3,442 Taxes 317 - 487 Special assessments 151,158 - - — Mortgage - - - Interest - - - Loan receivable - - - Loan receivable from component unit - - - Developer note - - - Due from other funds 1,745 - - Interfund loan receivable - - - — Due from component unit - 544 - Due from other governments 3,141 - - Inventories, at cost 652,137 - - -- Prepaid items 185,555 - - Property and equipment (Net of depreciation) 20,858,941 254,041 - Amount available in debt service fund - - - Amount to be provided for retirement of general long term debt - - - Total assets $31,705,808 $4,249,896 $53,971 See Accompanying Notes to Financial Statements 28 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 2000 1999 HRA 2000 1999 $ - $ - $36,126,489 $33,529,495 $10,557,729 $46,684,218 $41,809,436 - - - 1,139,431 - - 1,139,431 - - 1,535,205 1,466,499 - 1,535,205 1,466,499 - - 177,087 104,354 236,298 413,385 211,286 - - - 1,767,458 1,518,946 - 1,767,458 1,518,946 - - - 2,839,162 2,839,162 2,639,371 - - 327,791 365,444 98,871 426,662 488,676 _ - - 6,300 6,300 - 6,300 6,300 - - 757,662 805,410 - 757,662 805,410 - - 75,548 85,776 - 75,548 85,776 - - 61,759 1,080,593 2,524,464 2,586,223 4,622,566 - - - - - - - 939,775 - - 14,408 107,646 - 14,408 107,646 - - 320,042 459,974 24,267 344,309 1,401,765 - - 690,650 790,771 - 690,650 790,771 - - 185,555 186,248 - 185,555 186,248 ,r 40,903,920 - 62,016,902 61,219,252 - 62,016,902 61,219,252 - 9,334,218 9,334,218 9,467,255 - 9,334,218 9,467,255 - 5,120,782 5,120,782 5,287,745 - 5,120,782 5,287,745 $40,903,920 $14,455,000 $118,517,856 $117,621,139 $16,280,791 $134,798,647 $134,194,154 See Accompanying Notes to Financial Statements 29 Exhibit A-1 Page 3 of 4 ,_ CITY OF FRIDLEY, MINNESOTA COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNIT December 31, 2000 Governmental Fund Types .. Special Debt Capital General Revenue Service Projects Liabilities,fund equity and other credits Liabilities Accounts payable $212,285 $37,599 $ - $1,025 — Deposits payable 60,947 10,334 - - Contracts payable 22,132 - - - Interfund loan payable - - - - _. Salaries payable 315,989 10,617 - 259 Compensated absences payable - - - - Deferred revenue 128,732 108,686 1,514,820 71,238 Due to other funds 1,542 59,790 - - Due to primary government - - - - Due to component unit - - - - Due to other governments 12,729 2,844 3,899 169 — Bonds payable - - - - Loan payable to primary government - - - - Accrued interest payable - - - - Total liabilities 754,356 229,870 1,518,719 72,691 Fund equity and other credits Contributed capital - - - - Investment in general fixed assets - - - - Retained earnings: — Reserved - - - - Unreserved - - - - Fund balance: Reserved 125,839 - 1,409,977 393,040 — Unreserved: Designated 6,736,638 2,913,874 - 5,092,617 Undesignated - - 7,924,241 (22,601) "" Total fund equity and other credits 6,862,477 2,913,874 9,334,218 5,463,056 Total liabilities, fund equity and other credits $7,616,833 $3,143,744 $10,852,937 $5,535,747 See Accompanying Notes to Financial Statements 31 CITY OF FRIDLEY, MINNESOTA COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNIT December 31,2000 Fiduciary Proprietary Fund Types Fund Types Internal Trust and Enterprise Service Agency Liabilities,fund equity and other credits Liabilities Accounts payable $287,334 $32,720 $ - Deposits payable - - 12,591 Contracts payable - - - Interfund loan payable - - - Salaries payable 44,172 70,368 - Compensated absences payable - 805,858 - �" Deferred revenue - - 427 Due to other funds 203 - 224 Due to primary government - - - Due to component unit - - - Due to other governments 66,738 33,995 20,816 Bonds payable 3,861,779 - - — Loan payable to primary government - - - Accrued interest payable 78,231 - - Total liabilities 4,338,457 942,941 34,058 Fund equity and other credits Contributed capital 10,427,575 1,827,822 - -- Investment in general fixed assets - - - Retained earnings: Reserved 9,128,000 280,325 - Unreserved 7,811,776 1,198,808 - Fund balance: Reserved - - - Unreserved: Designated - - - Undesignated - - 19,913 Total fund equity and other credits 27,367,351 3,306,955 19,913 — Total liabilities, fund equity and other credits $31,705,808 $4,249,896 $53,971 See Accompanying Notes to Financial Statements 32 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 2000 1999 HRA 2000 1999 $ - $ - $570,963 $681,301 $33,868 $604,831 $1,188,054 - - - 83,872 74,765 - 83,872 104,015 - - 22,132 150,352 - 22,132 150,352 - - - - - - 939,775 - - 441,405 420,442 3,206 444,611 430,225 - - 805,858 838,866 - 805,858 838,866 - - 1,823,903 1,411,813 39,527 1,863,430 1,502,161 _ - - 61,759 1,080,593 2,524,464 2,586,223 4,622,566 - - - - 14,408 14,408 107,646 - - - 941,791 - - 941,791 - - 141,190 113,615 - 141,190 113,615 - - 14,455,000 18,316,779 20,059,849 - 18,316,779 20,059,849 - - - - 757,662 757,662 805,410 - - 78,231 116,188 - 78,231 116,188 ,..� 0 14,455,000 22,346,092 25,889,575 3,373,135 25,719,227 31,920,513 - - 12,255,397 12,628,490 - 12,255,397 12,628,490 40,903,920 - 40,903,920 39,647,657 - 40,903,920 39,647,657 - - - 9,408,325 2,460,382 - 9,408,325 2,460,382 - - 9,010,584 14,962,058 - 9,010,584 14,962,058 - - 1,928,856 2,003,424 2,938,162 4,867,018 4,775,290 - - 14,743,129 12,481,422 - 14,743,129 12,481,422 - - 7,921,553 7,548,131 9,969,494 17,891,047 15,318,342 "' 40,903,920 0 96,171,764 91,731,564 12,907,656 109,079,420 102,273,641 - $40,903,920 $14,455,000 $118,517,856 $117,621,139 $16,280,791 $134,798,647 $134,194,154 See Accompanying Notes to Financial Statements 33 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 UNIT Year Ended December 31, 2000 _. Governmental Fund Types Special Debt Capital ., General Revenue Service Projects Revenues: Taxes $3,910,473 $ - $ - $71,557 -� Special assessments 8,419 - 522,431 16,836 Licenses and permits 1,155,877 120,738 - - Intergovernmental revenue 3,463,918 2,998,663 - 706,785 . Charges for services 1,185,202 206,001 - - Fines and forfeits 183,972 13,160 - - Investment income 518,312 113,059 603,321 370,326 Miscellaneous 203,902 17,214 39,680 69,354 Total revenues 10,630,075 3,468,835 1,165,432 1,234,858 Expenditures: Current: General government 1,864,752 1,023,309 - - Public safety 4,341,248 50,777 - - Municipal center 225,114 - - - Public works 2,508,029 - - 153,898 Community development 775,312 - - - Recreation and naturalist 1,031,174 - - - - Debt service - - 1,058,772 - Capital outlay 478,199 53,586 - 1,392,877 Total expenditures 11,223,828 1,127,672 1,058,772 1,546,775 - Excess (deficiency) of revenues over(under) expenditures (593,753) 2,341,163 106,660 (311,917) Other financing sources(uses): Sale of fixed assets 33,666 - - - Operating transfers in 432,900 86,567 - 1,975,748 Operating transfers out (86,567) - (940,386) (1,183,028) Operating transfers from component unit - - 776,188 - Operating transfers to component unit - (3,420) (75,499) - Operating transfers from primary government - - - - - Operating transfers to primary government - - - - Total other financing sources(uses) 379,999 83,147 (239,697) 792,720 Excess(deficiency) of revenues and other financing _, sources over(under) expenditures and other financing uses (213,754) 2,424,310 (133,037) 480,803 Fund balance-January 1 7,076,231 489,564 9,467,255 4,982,253 Fund balance- December 31 $6,862,477 $2,913,874 $9,334,218 $5,463,056 See Accompanying Notes to Financial Statements 34 Exhibit A-2 Fiduciary Fund Type Totals Primary Government Component Totals Reporting Entity Expendable (Memorandum Only) Unit (Memorandum Only) Trust 2000 1999 HRA 2000 1999 $ - $3,982,030 $4,048,224 $3,008,689 $6,990,719 $7,100,641 547,686 426,827 - 547,686 426,827 - 1,276,615 937,084 - 1,276,615 937,084 - 7,169,366 5,417,384 108,762 7,278,128 5,417,384 - 1,391,203 1,291,819 - 1,391,203 1,291,819 - 197,132 195,798 - 197,132 195,798 2,239 1,607,257 803,768 648,047 2,255,304 1,164,263 - - 330,150 437,815 495,343 825,493 697,087 2,239 16,501,439 13,558,719 4,260,841 20,762,280 17,230,903 - 2,888,061 2,585,352 921,741 3,809,802 3,886,283 - 4,392,025 4,243,682 - 4,392,025 4,243,682 - - 225,114 235,308 - 225,114 235,308 - 2,661,927 2,879,627 - 2,661,927 2,879,627 - 775,312 721,120 - 775,312 721,120 - - 1,031,174 996,584 - 1,031,174 996,584 - 1,058,772 1,029,680 39,681 1,098,453 1,579,714 - 1,924,662 3,753,581 236,571 2,161,233 6,256,104 0 14,957,047 16,444,934 1,197,993 16,155,040 20,798,422 - 2,239 1,544,392 (2,886,215) 3,062,848 4,607,240 (3,567,519) - 33,666 21,279 - 33,666 21,279 - 2,495,215 3,966,618 2,967,906 5,463,121 15,566,198 - - (2,209,981) (3,501,618) (2,967,906) (5,177,887) (15,101,198) - 776,188 741,463 - 776,188 741,463 - (78,919) (941,791) - (78,919) (941,791) - - - - 78,919 78,919 941,791 - - (776,188) (776,188) (741,463) 0 1,016,169 285,951 (697,269) 318,900 486,279 - 2,239 2,560,561 (2,600,264) 2,365,579 4,926,140 (3,081,240) 17,674 22,032,977 24,633,241 10,542,077 32,575,054 35,656,294 - $19,913 $24,593,538 $22,032,977 $12,907,656 $37,501,194 $32,575,054 See Accompanying Notes to Financial Statements 35 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 31,2000 General Special Revenue Funds Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Revenues: Taxes $3,884,521 $3,910,473 $25,952 $ - $ - $ - Special assessments 4,000 8,419 4,419 - - - Licenses and permits 718,900 1,155,877 436,977 140,000 120,738 (19,262) Intergovernmental revenue 3,381,743 3,463,918 82,175 2,963,385 2,998,663 35,278 Charges for services 1,234,035 1,185,202 (48,833) 207,164 206,001 (1,163) Fines and forfeits 185,000 183,972 (1,028) 15,937 13,160 (2,777) Investment income 435,000 518,312 83,312 7,500 118,059 110,559 - Miscellaneous 155,165 203,902 48,737 4,777 12,214 7,437 Total revenues 9,998,364 10,630,075 631,711 3,338,763 3,468,835 130,072 Expenditures: Current: General government 1,999,804 1,864,752 135,052 1,047,330 1,023,309 24,021 Public safety 4,360,797 4,341,248 19,549 50,777 50,777 - Municipal center 225,114 225,114 - - - - .-. Public works 2,534,362 2,508,029 26,333 - - - Community development 779,171 775,312 3,859 - - - Recreation and naturalist 1,066,175 1,031,174 35,001 - - - ... Capital outlay 519,886 478,199 41,687 303,882 53,586 250,296 Total expenditures 11,485,309 11,223,828 261,481 1,401,989 1,127,672 274,317 Excess(deficiency)of revenues .--, over(under)expenditures (1,486,945) (593,753) 893,192 1,936,774 2,341,163 404,389 Other financing sources(uses): Sale of fixed assets 20,000 33,666 13,666 - - - Operating transfers in 432,900 432,900 - 250,235 86,567 (163,668) 1 Operating transfers out (86,332) (86,567) (235) (3,420) (3,420) - Operating transfer to component unit - - - - - - Total other financing sources(uses) 366,568 379,999 13,431 246,815 83,147 (163,668) Excess(deficiency)of revenues and other financing sources over(under) expenditures and other financing uses ($1,120,377) (213,754) $906,623 $2,183,589 2,424,310 $240,721 Fund balance-January 1 7,076,231 489,564 Fund balance- December 31 $6,862,477 $2,913,874 See Accompanying Notes to Financial Statements 36 Exhibit A-3 Totals - Budgeted Capital Projects Funds (Memorandum Only) Variance Variance Favorable Favorable 1999 Budget Actual (Unfavorable) Budget Actual (Unfavorable) Actual $70,550 $71,557 $1,007 $3,955,071 $3,982,030 $26,959 $4,048,224 - 1,550 1,550 4,000 9,969 5,969 11,758 - - - 858,900 1,276,615 417,715 937,084 224,534 706,785 482,251 6,569,662 7,169,366 599,704 5,053,824 - - - 1,441,199 1,391,203 (49,996) 1,291,819 - - - 200,937 197,132 (3,805) 195,798 - 417,225 360,305 (56,920) 859,725 996,676 136,951 521,081 30,000 68,129 38,129 189,942 284,245 94,303 263,978 742,309 1,208,326 466,017 14,079,436 15,307,236 1,227,800 12,323,566 - - - 3,047,134 2,888,061 159,073 2,576,506 _ - - - 4,411,574 4,392,025 19,549 4,243,682 - - - 225,114 225,114 - 235,308 44,962 44,962 - 2,579,324 2,552,991 26,333 2,556,632 - - - 779,171 775,312 3,859 721,120 - - - 1,066,175 1,031,174 35,001 996,584 320,206 320,206 - 1,143,974 851,991 291,983 1,186,926 365,168 365,168 0 13,252,466 12,716,668 535,798 12,516,758 377,141 843,158 466,017 826,970 2,590,568 1,763,598 (193,192) - - - 20,000 33,666 13,666 21,279 - - 683,135 519,467 (163,668) 463,151 (1,183,028) (1,183,028) - (1,272,780) (1,273,015) (235) (2,927,081) - - - - (848,528) (1,183,028) (1,183,028) 0 (569,645) (719,882) (150,237) (3,291,179) ($805,887) (339,870) $466,017 $257,325 1,870,686 $1,613,361 (3,484,371) - 5,311,061 12,876,856 16,361,227 $4,971,191 $14,747,542 $12,876,856 See Accompanying Notes to Financial Statements 37 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, 2000 Proprietary Fund Types Totals Internal (Memorandum Only) Sales and cost of sales: Enterprise Service 2000 1999 Sales $5,200,127 $ - $5,200,127 $3,686,984 .. Cost of sales 4,134,935 - 4,134,935 2,905,867 Gross profit 1,065,192 0 1,065,192 781,117 Operating revenues: Water sales and sewer rents 5,150,374 - 5,150,374 5,389,003 Charges for services - 688,926 688,926 292,031 Other revenues 13,403 - 13,403 18,885 - Total operating revenues 5,163,777 688,926 5,852,703 5,699,919 Operating expenses: Personal services 1,531,577 8,094 1,539,671 1,418,529 Supplies and other charges 3,341,557 671,094 4,012,651 3,789,796 Depreciation 1,018,648 99,731 1,118,379 1,011,394 1 Total operating expenses 5,891,782 778,919 6,670,701 6,219,719 - Operating income(loss) 337,187 (89,993) 247,194 261,317 Nonoperating revenues(expenses): Intergovernmental revenue 34,945 - 34,945 - Investment income 579,258 276,390 855,648 433,638 Debt service (199,893) - (199,893) (283,058) Special assessments 30,271 - 30,271 16,375 Loss on disposal of fixed assets (59,554) - (59,554) (22,055) Total nonoperating revenues (expenses) 385,027 276,390 661,417 144,900 _. Income before operating transfers 722,214 186,397 908,611 406,217 Operating transfers: Operating transfer out (285,234) - (285,234) (465,000) Net income (loss) 436,980 186,397 623,377 (58,783) Credit arising from transfer of depreciation on contributed capital 370,065 3,027 373,092 384,045 Retained earnings-January 1 16,132,731 1,289,709 17,422,440 17,097,178 Retained earnings- December 31 $16,939,776 $1,479,133 $18,418,909 $17,422,440 -- See Accompanying Notes to Financial Statements 38 Exhibit A-5 .., CITY OF FRIDLEY, MINNESOTA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES Year Ended December 31,2000 — — Proprietary Fund Types Totals Internal (Memorandum Only) Enterprise Service 2000 1999 _ Cash flows from operating activities: Operating income(loss) $337,187 ($89,993) $247,194 $261,317 Adjustments to reconcile operating income(loss)to net cash flows from operating activities: — Depreciation 1,018,648 99,731 1,118,379 1,011,394 Change in assets and liabilities: Decrease(increase)in receivables (24,024) (19,904) (43,928) 525,107 Decrease(increase)in due from other funds (846) - (846) 427 — Decrease(increase)in due from component unit - (518) (518) (26) Decrease(increase) in due from other governments 25,851 - 25,851 199,822 Decrease(increase) in inventories 102,202 - 102,202 (450,387) — Decrease(increase)in prepaid items 693 - 693 64,244 Increase(decrease) in payables (215,223) (29,006) (244,229) 313,857 Net cash flows from operating activities 1,244,488 (39,690) 1,204,798 1,925,755 — Cash flows from noncapital financing activities: Intergovernmental revenue 34,945 - 34,945 - Operating transfers out (285,234) - (285,234) (465,000) _., Special assessment collections 30,271 - 30,271 16,375 Net cash flows from noncapital financing activities (220,018) 0 (220,018) (448,625) Cash flows from capital and related financing activities: "" Acquisition and construction of fixed assets (576,939) (142,383) (719,322) (1,475,261) Prinicipal paid on revenue bonds (1,443,070) - (1,443,070) (298,070) Interest and paying agent fees on revenue bonds (199,893) - (199,893) (283,058) Net cash flows from capital and related financing activities (2,219,902) (142,383) (2,362,285) (2,056,389) Cash flows from investing activities: Investment income 579,258 276,390 855,648 433,638 Net increase(decrease) in cash and cash equivalents (616,174) 94,317 (521,857) (145,621) Cash and cash equivalents-January 1 9,058,842 3,879,392 12,938,234 13,083,855 — Cash and cash equivalents-December 31 $8,442,668 $3,973,709 $12,416,377 $12,938,234 See Accompanying Notes to Financial Statements 39 NOTES TO FINANCIAL STATEMENTS CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2000 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.) 41. CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 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). 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. "" 42 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2000 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. 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. 43 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2000 .. 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. 44 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2000 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. 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; OMR 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. 45 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 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. Investments are stated at fair value, based upon quoted market prices as of the balance sheet date. 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 2000 taxes were adjusted downward $11,895 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 a. taxes levied against homestead property. The State remits this aid in two equal installments in July and December each year. 46 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2000 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. 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. 47 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2000 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. 48 ark r CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2000 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. AMIN 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. 49 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 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, 2000 are as follows: Bank Carrying Balances Amount City $119,159 $270,253 HRA 240,850 162,453 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. 50 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 (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 or instrumentalities $28,152,533 $ - $ - $28,152,533 Investments not subject to categorization: Mutual funds 7,703,703 Total investments $35,856,236 51 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 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 $210,979 $ - $ - $210,979 U.S. government agencies or instrumentalities 5,997,452 - - 5,997,452 $6,208,431 $0 $0 6,208,431 Investments not subject to categorization: Money market fund 598,680 Mutual fund 3,588,165 Total investments $10,395,276 •-r 3. Special Assessments Receivable Special assessments receivable at December 31, 2000 are as follows: Capital Special Special Improvements Assessment Public Assessment Capital Capital Utilities — General Debt Service Projects Projects Enterprise Total Unremitted $2,205 $23,746 $266 $ - $8,336 $34,553 Delinquent 496 3,204 - 2,433 113 6,246 Deferred 7,549 1,511,616 5,320 59,465 142,709 1,726,659 Total $10,250 $1,538,566 $5,586 $61,898 $151,158 $1,767,458 52 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 4. Due From Other Governments Amounts due from other governments at December 31, 2000 are as follows: General Fund: State of Minnesota: a) State Aid Maintenance $19,472 b) FEMA 9,542 c) Department of Revenue 15,427 Anoka County: a) Fines and Forfeits 12,816 Other 391 Total General Fund $57,648 Special Revenue Funds: State of Minnesota: a) Highway Improvements $57,446 b) Chemical Assessment Team 12,607 c) Department of Revenue 6,878 Anoka County: a) Community Development Block Grant 3,147 b) Recycling 55,632 Federal 55,155 Met Council-Section 8 5,794 Total Special Revenue Funds $196,659 Capital Projects Funds: State of Minnesota $62,594 Enterprise Funds: City of Coon Rapids $3,141 53 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 5. Changes in General Fixed Assets A summary of changes in general fixed assets are as follows: Balance Balance January 1, December 31, 2000 Additions Deletions 2000 Land $2,735,987 $ - $ - $2,735,987 Buildings 6,941,385 2,420 9,591 6,934,214 Improvements other than buildings 24,045,403 1,349,401 212,055 25,182,749 Machinery and equipment 5,924,882 599,866 473,778 6,050,970 Total $39,647,657 $1,951,687 $695,424 $40,903,920 6. Summary of Proprietary Fund Property and Equipment A summary of proprietary fund type property, plant and equipment at December 31, 2000 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 661,315 10,517,640 - 11,178,955 Machinery and equipment 316,863 2,146,924 733,948 3,197,735 Water and sewer lines - 18,041,570 - 18,041,570 1,260,335 32,380,200 733,948 34,374,483 Less: Accumulated depreciation (301,315) (12,480,279) (479,907) (13,261,501) Net property and equipment $959,020 $19,899,921 $254,041 $21,112,982 '^ 54 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 .. 7. Long-Term Debt The following is a summary of long-term debt transactions of the City for the year ended December 31, 2000: Proprietary General Long -Term Debt Account Group Funds .. General Obligation Bonds General Special Tax Obligation Assessment Increment Total Revenue Bond Debt payable-January 1, 2000 $1,070,000 $13,685,000 $14,755,000 $5,325,000 Debt issued - - - - Debt retired (225,000) (75,000) (300,000) (1,445,000) Debt payable- December 31, 2000 $845,000 $13,610,000 $14,455,000 $3,880,000 a a 55 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 Bonds payable at December 31, 2000 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%. $240 $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%. 290 $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%. 100 $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%. 215 $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%. 9,425 $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 14,455 Revenue Bonds: $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%. 355 •. $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%. 205 $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%. 2,140 $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 3,880 Total Bonds Payable $18,335 56 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 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. Annual Requirements to Amortize Long-Term Debt December 31, 2000 General Obligation Bonds Year Ending Special Tax December 31, Assessment Increment-City Revenue Total —. 2001 $269,771 $1,572,701 $529,805 $2,372,277 2002 179,608 1,654,664 523,477 2,357,749 2003 171,607 1,636,292 516,355 2,324,254 2004 139,134 1,733,002 518,240 2,390,376 ... 2005 136,810 1,734,334 523,656 2,394,800 2006-2010 62,955 8,365,630 1,832,770 10,261,355 2011 -2012 - 1,279,347 470,309 1,749,656 $959,885 $17,975,970 $4,914,612 $23,850,467 $9,334,218 is available in the Debt Service Fund to service the Special Assessment and Redevelopment Bonds. $25,426,843 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, 2000, the legal debt margin was$26,327,646. 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. 57 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 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. 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. 58 A.% CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 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, 1998, 1999 and 2000 -- are equal to the contractually required contributions for each year as set by state statute for PERF and PEPFF as follows: PERF PEPFF 1998 $207,829 $206,140 1999 225,626 201,709 - 2000 235,249 226,412 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. 59 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 Total contributions made by the City during fiscal year 2000 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 •- 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 $100,841 and $98,229 in State Aid to the Association for 2000 and 1999, .r respectively. During 2000 and as of December 31, 2000, the Association held no securities issued by the City or other related parties. 10. Defined Benefit Pension Plan -Police and Fire Consolidation Fund a 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. 60 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 11. Interfund Receivables and Payables Interfund receivables and payables of the primary government at December 31, 2000 are as follows: " Interfund Interfund _Receivables Payables Due From/Due To: ... General Fund $60,014 $1,542 Special Revenue Fund: Solid Waste Abatement Fund - 49,800 HRA Reimbursement - 457 Chemical Assessment Team Fund - 9,533 Enterprise Funds: Public Utilities Fund 1,745 24 Liquor - 179 Trust and Agency Funds: Hotel/Motel Tax Agency Fund - 224 $61,759 $61,759 lnterfund receivables and payables of the HRA component unit at December 31, 2000 is as follows: Interfund Interfund Receivables Payables Due From/Due To: General Fund $2,524,464 $ - Capital Projects Funds: Lake Pointe - 1,072,303 Onan - 127,422 Shorewood - 16,007 Northco Phase III - 364 Redevelopment - 120,260 57th Avenue Gateway East - 327,653 Housing Replacement#1 - 860,455 $2,524,464 $2,524,464 61 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 .� 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, 2000: General Fund: Reserved for: Encumbrances $5,478 Inventory 38,513 Long-term receivables 81,848 Total General Fund 125,839 Debt Service Funds: Reserved for debt service 652,315 Reserved for long-term receivable 757,662 Total Debt Service Funds 1,409,977 a' Capital Projects Funds: Reserved for encumbrances 393,040 Total Governmental Funds $1,928,856 Retained Earnings: M. Enterprise Funds: Reserved for capital outlay $9,128,000 Internal Service Funds: Employee Benefits Fund: Reserved for employee benefits 280,325 Total Proprietary Funds $9,408,325 The HRA component unit had reserved fund balances at December 31, 2000: Reserved for: Mortgage receivable $2,938,162 O.. 62 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 13. Designated Fund Balance The following designations have been made of various fund balances at December 31, 2000: General Fund: Working capital $4,186,141 Contingencies 1,166,402 _. Subsequent year's expenditures 595,184 Replacement of fixed assets 788,911 Total General Fund 6,736,638 Special Revenue Funds: Cable TV Fund: Cable TV operations 209,772 Solid Waste Abatement: Subsequent years expenditures 1,444 HRA Reimbursement: Professional services 780 Drug and Gambling Forfeiture Fund: Drug and gambling enforcement 18,802 Housing Revitalization Program: Housing revitalization 250,000 F.C.C. Donations: Fridley community center 97,965 Police Activity: Public safety expenditures 2,335,111 Total Special Revenue Funds 2,913,874 Capital Projects Funds: Capital Improvement Fund: Replacement of fixed assets 1,170,123 Park improvements 1,572,971 Street improvements 2,349,523 Total Capital Projects Funds 5,092,617 Total of designated fund balances $14,743,129 63 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2000 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 $10,797,640 $1,000,000 $830,850 Increases: Current capital contributions - - - Decreases: .. Depreciation of contributed assets (370,065) - (3,028) Balance- December 31 $10,427,575 $1,000,000 $827,822 64 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 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, 2000 is as follows: Total Public Enterprise Liquor Utilities Funds Sales (less cost of sales of$4,134,935) $1,065,192 $ - $1,065,192 Operating revenues - 5,150,374 5,150,374 Operating expenses (926,409) (4,965,373) (5,891,782) Operating income 138,783 185,001 323,784 Nonoperating revenues (expenses) - net 44,785 353,645 398,430 Operating transfers in (out) (200,000) (85,234) (285,234) Net income ($16,432) $453,412 $436,980 Depreciation expense included in operating expenses $77,935 $940,713 $1,018,648 Property and equipment: Additions(including capital contributions) 36,185 551,366 587,551 Working capital 981,488 9,038,701 10,020,189 Total assets 2,237,400 29,468,408 31,705,808 Bonds payable - 3,861,779 3,861,779 Fund equity: Contributed capital - 10,427,575 10,427,575 Retained earnings 1,940,508 14,999,268 16,939,776 Total fund equity $1,940,508 $25,426,843 $27,367,351 65 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 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 Other Balance Financing (Deficit) Sources December 31, Revenues Expenditures (Uses) 2000 All Capital Projects Funds $1,234,858 $1,546,771 $792,716 $5,463,056 .. Less unbudgeted funds: Special Assessments Fund (26,532) (1,181,603) (1,975,748) (491,865) Budgeted Capital Projects Funds $1,208,326 $365,168 ($1,183,032) $4,971,191 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, 2000, the Self Insurance Fund has accumulated equity in the amount of $1,988,218 to cover future claims and losses. 66 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2000 18. Commitments and Contingencies A. Litigation The City attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs. 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, 2000. 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 WWI instances of noncompliance which would have a material effect on the financial statements. .. 19. Leases Operating Leases The City leases space for two of its liquor stores. Total costs for these leases were$162,414 for the year ended December 31, 2000. The future minimum lease payments for these leases are as follows: Year Ending December 31, 2001 $91,519 2002 83,319 2003 83,319 2004 85,904 ... 2005 95,850 Thereafter 917,353 Total $1,357,264 67 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 20. Conduit Debt Obligation From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to private- sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. "' As of December 31, 2000, 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 $17,800,000. 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. MOM 68 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, 2000 and 1999 _, Assets 2000 1999 Cash and investments $6,816,089 $6,858,487 Receivables: Accounts 40,835 62,832 Taxes: Unremitted 57,526 65,421 Delinquent 113,817 36,200 Special assessments: Unremitted 2,205 3,573 Delinquent 496 594 Deferred 7,549 7,783 Interest 327,791 343,961 Loan receivable 6,300 6,300 Developer note 75,548 85,776 Due from other funds 60,014 131,154 Due from component unit 12,502 31,212 - Due from other governments 57,648 17,014 Inventories, at cost 38,513 36,432 Total assets $7,616,833 $7,686,739 Liabilities and Fund Balance ..., Liabilities: Accounts payable $212,285 $184,213 ., Contracts payable 22,132 - Deposits payable 60,947 51,955 Salaries payable 315,989 301,023 Deferred revenue 128,732 44,577 Due to other funds 1,542 805 Due to other governments 12,729 27,935 Total liabilities 754,356 610,508 Fund balance: Reserved for encumbrances 5,478 2,490 _, Reserved for inventory 38,513 36,432 Reserved for long-term receivables 81,848 92,076 Unreserved: Designated for working capital 4,186,141 4,115,072 Designated for contingencies 1,166,402 1,152,465 Designated for subsequent year's expenditures 595,184 1,123,365 Designated for fixed asset replacement 788,911 554,331 Total fund balance 6,862,477 7,076,231 Total liabilities and fund balance $7,616,833 $7,686,739 .... 70 Exhibit B-2 CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES,AND -. CHANGES IN FUND BALANCE- BUDGET AND ACTUAL Year Ended December 31,2000 With comparative actual amounts for year ended December 31, 1999 2000 Variance -, Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Taxes $3,884,521 $3,910,473 $25,952 $3,975,124 Special assessments 4,000 8,419 4,419 10,249 Licenses and permits 718,900 1,155,877 436,977 793,444 - Intergovernmental revenue 3,381,743 3,463,918 82,175 3,323,400 Charges for services 1,234,035 1,185,202 (48,833) 1,079,696 Fines and forfeits 185,000 183,972 (1,028) 172,399 Investment income 435,000 518,312 83,312 292,631 - Miscellaneous 155,165 203,902 48,737 254,648 Total revenues 9,998,364 10,630,075 631,711 9,901,591 Expenditures: Current: General government 1,999,804 1,864,752 135,052 1,829,838 Public safety 4,360,797 4,341,248 19,549 4,189,882 Municipal center 225,114 225,114 - 235,308 Public works 2,534,362 2,508,029 26,333 2,510,359 Community development 779,171 775,312 3,859 721,120 Recreation and naturalist 1,066,175 1,031,174 35,001 994,354 Capital outlay 519,886 478,199 41,687 451,509 Total expenditures 11,485,309 11,223,828 261,481 10,932,370 Excess(deficiency) of revenues over(under) expenditures (1,486,945) (593,753) 893,192 (1,030,779) - Other financing sources(uses): Sale of fixed assets 20,000 33,666 13,666 21,279 - Operating transfers in 432,900 432,900 - 402,900 Operating transfers out (86,332) (86,567) (235) - Total other financing sources(uses) 366,568 379,999 13,431 424,179 Excess(deficiency)of revenues and other financing sources over(under) expenditures and other financing uses ($1,120,377) (213,754) $906,623 (606,600) Fund balance-January 1 7,076,231 7,682,831 Fund balance- December 31 $6,862,477 $7,076,231 71 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 31,2000 With comparative actual amounts for year ended December 31, 1999 2000 Variance Favorable 1999 Budget Actual (Unfavorable) Actual Taxes and special assessments: Current ad valorem taxes $3,825,521 $3,844,528 $19,007 $3,950,575 - Delinquent ad valorem taxes 20,000 43,623 23,623 11,518 Penalties and interest 14,000 20,055 6,055 13,031 Forfeited sale-taxes 25,000 2,267 (22,733) - ..., Special assessments 4,000 8,419 4,419 10,249 Total taxes and special assessments 3,888,521 3,918,892 30,371 3,985,373 Licenses and permits: Licenses: Contractor 43,000 44,481 1,481 41,410 Business 91,700 98,086 6,386 106,627 All other 40,000 66,209 26,209 37,872 Permits 544,200 947,101 402,901 607,535 Total licenses and permits 718,900 1,155,877 436,977 793,444 - Intergovernmental revenue: Civil defense 5,000 1,199 (3,801) 7,229 Federal grants - 792 792 2,791 FEMA disaster aid 4,796 3,597 (1,199) - State maintenance aid 190,900 214,293 23,393 175,245 State credits 1,068,907 1,077,816 8,909 1,047,294 Local government aid 1,738,876 1,738,876 - 1,677,315 Local performance aid - - - 34,413 Other state grants 32,445 44,014 11,569 1,097 Police and fire pension 313,200 336,383 23,183 341,292 Other 27,619 46,948 19,329 36,724 Total intergovernmental revenue 3,381,743 3,463,918 82,175 3,323,400 Charges for services: General government 888,260 713,620 (174,640) 696,136 Public safety 122,775 184,783 62,008 133,284 Conservation of health 200 7,523 7,323 6,294 Recreation 222,800 279,276 56,476 243,982 Total charges for services 1,234,035 1,185,202 (48,833) 1,079,696 Fines and forfeits 185,000 183,972 (1,028) 172,399 Investment income 435,000 518,312 83,312 292,631 72 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 31,2000 With comparative actual amounts for year ended December 31, 1999 2000 Variance Favorable 1999 Budget Actual (Unfavorable) Actual Miscellaneous revenue: Insurance and other reimbursements $85,000 $66,439 ($18,561) $67,838 Gambling tax 58,000 97,563 39,563 99,857 Donations 9,815 10,260 445 58,084 Miscellaneous 2,350 29,640 27,290 28,869 Total miscellaneous revenue 155,165 203,902 48,737 254,648 Total revenues 9,998,364 10,630,075 631,711 9,901,591 Other financing sources: Sale of fixed assets 20,000 33,666 13,666 21,279 Operating transfers in: Liquor fund 200,000 200,000 - 170,000 Special assessment debt service fund 232,900 232,900 - 232,900 Total other financing sources 452,900 466,566 13,666 424,179 ._ Total revenues and other financing sources $10,451,264 $11,096,641 $645,377 $10,325,770 73 .. 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 31,2000 With comparative actual amounts for year ended December 31, 1999 2000 Variance Favorable 1999 Budget Actual (Unfavorable) Actual General government: Mayor and council: Personal services $69,992 $60,958 $9,034 $58,051 Supplies and other charges 45,960 37,907 8,053 41,799 - Total mayor and council 115,952 98,865 17,087 99,850 Planning commission: Supplies and other charges 1,760 159 1,601 159 Other commissions: - Supplies and other charges 5,130 1,718 3,412 27,868 City manager: Personal services 235,735 235,735 - 228,053 - Supplies and other charges 41,878 41,878 - 57,777 Total City manager 277,613 277,613 0 285,830 Human resources: Personal services 120,703 117,660 3,043 115,125 Supplies and other charges 13,450 11,767 1,683 13,329 Total human resources 134,153 129,427 4,726 128,454 Legal: Supplies and other charges 293,583 277,651 15,932 269,963 Elections: Personal services 29,506 29,506 - 10,389 - Supplies and other charges 2,106 2,106 - 947 Total elections 31,612 31,612 0 11,336 Accounting: Personal services 490,663 481,296 9,367 462,636 Supplies and other charges 96,935 73,596 23,339 86,857 Total accounting 587,598 554,892 32,706 549,493 - Assessing: Personal services 136,067 136,067 - 126,781 Supplies and other charges 8,973 8,973_ - 8,765 Total assessing 145,040 145,040 0 135,546 MIS: Personal services 143,903 116,955 26,948 101,690 Supplies and other charges 71,868 50,479 21,389 34,182 _ Total MIS 215,771 167,434 48,337 135,872 City clerk/records: Personal services 123,408 112,666 10,742 101,947 Supplies and other charges 12,894 12,894 - 8,099 Total City clerk/records 136,302 125,560 10,742 110,046 75 Page 2 of 3 CITY OF FRIDLEY, MINNESOTA GENERAL FUND SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES-BUDGET AND ACTUAL _ Year Ended December 31, 2000 With comparative actual amounts for year ended December 31, 1999 2000 Variance Favorable 1999 Budget Actual (Unfavorable) Actual Nondepartmental: Personal services $1,080 $1,080 $ - $4,289 Supplies and other charges 54,210 53,701 509 71,132 Total nondepartmental 55,290 54,781 509 75,421 Total general government 1,999,804 1,864,752 135,052 1,829,838 Public safety: Police: Personal services 3,106,917 3,106,917 - 3,015,579 Supplies and other charges 334,235 334,235 - 329,918 Total police 3,441,152 3,441,152 0 3,345,497 Fire: Personal services 684,970 684,970 - 630,013 Supplies and other charges 150,839 150,839 - 119,786 Total fire 835,809 835,809 0 749,799 Rental inspections: Personal services 57,231 41,994 15,237 68,573 Supplies and other charges 13,970 10,911 3,059 11,567 Total rental inspections 71,201 52,905 18,296 80,140 Civil defense: Supplies and other charges 12,635 11,382 1,253 14,446 �' Total public safety 4,360,797 4,341,248 19,549 4,189,882 Municipal center: Personal services 17,481 17,481 - 23,121 Supplies and other charges 207,633 207,633 - 212,187 - Total municipal center 225,114 225,114 0 235,308 Public works: Engineering: Personal services 395,508 393,174 2,334 388,915 Supplies and other charges 75,555 72,696 2,859 54,647 Total engineering 471,063 465,870 5,193 443,562 Public works and parks: Personal services 1,216,415 1,203,845 12,570 1,186,217 Supplies and other charges 846,884 838,314 8,570 880,580 Total public works and parks 2,063,299 2,042,159 21,140 2,066,797 Total public works 2,534,362 2,508,029 26,333 2,510,359 76 Exhibit B-4 ^ Page3of3 CITY OF FRIDLEY, MINNESOTA GENERAL FUND SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES-BUDGET AND ACTUAL Year Ended December 31, 2000 With comparative actual amounts for year ended December 31, 1999 2000 Variance ... Favorable 1999 Budget Actual (Unfavorable) Actual Community development: Building inspection: Personal services $190,688 $190,688 $ - $173,442 Supplies and other charges 93,494 89,635 3,859 79,238 -, Total building inspection 284,182 280,323 3,859 252,680 Planning: Personal services 353,026 353,026 - 337,356 Supplies and other charges 141,963 141,963 - 131,084 - Total planning 494,989 494,989 0 468,440 Total community development 779,171 775,312 3,859 721,120 Recreation and naturalist: Recreation: Personal services 528,107 527,497 610 499,940 Supplies and other charges 272,507 238,116 34,391 236,760 Total recreation 800,614 765,613 35,001 736,700 Naturalist: Personal services 204,065 204,065 - 197,065 - Supplies and other charges 61,496 61,496 - 60,589 Total naturalist 265,561 265,561 0 257,654 Total recreation and naturalist 1,066,175 1,031,174 35,001 994,354 Capital outlay expenditures: Police 108,840 103,594 5,246 89,835 - Fire 21,595 20,116 1,479 68,125 Municipal center 4,000 4,000 - 1,360 Public works 383,701 350,489 33,212 286,096 Naturalist - - - 1,775 Recreation 1,750 - 1,750 - Non-departmental - - - 4,318 Total capital outlay 519,886 478,199 41,687 451,509 Total expenditures 11,485,309 11,223,828 261,481 10,932,370 Operating transfers out: Special Revenue Fund 86,332 86,567 (235) - Total expenditures $11,571,641 $11,310,395 $261,246 $10,932,370 77 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 spend 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 proceeds are disbursed equally 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. 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. Police Activity Fund This fund is used to account for the residual assets refunded to the City from the Public Employees Retirement Association's police consolidation account. CITY OF FRIDLEY, MINNESOTA –■ SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 2000 With comparative totals for December 31, 1999 Cable Grant Solid Waste HRA Assets TV Management Abatement Reimbursement Cash and investments $181,167 $1,936 $ - $ - Accounts receivable 40,794 - 17,779 - -- Due from component unit - - - 1,362 Due from other governments - 127,471 55,632 - Total assets $221,961 $129,407 $73,411 $1,362 Liabilities and Fund Balance — Liabilities: Accounts payable $337 $13,810 $20,157 $125 Deposits payable 10,334 - - - Salaries payable 1,518 6,776 2,010 - Deferred revenue - 108,686 - - Due to other funds - - 49,800 457 Due to component unit - - - - "" Due to other governments - 135 - - Total liabilities 12,189 129,407 71,967 582 Fund balance: Unreserved: Designated for subsequent year's expenditures - - 1,444 - Designated for special revenue programs 209,772 - - 780 Undesignated - - - - Total fund balance 209,772 0 1,444 780 Total liabilities and fund balance $221,961 $129,407 $73,411 $1,362 80 Exhibit C-1 Drug and Chemical Gambling Housing Assessment F.C.C. Police Totals "" Forfeiture Revitalization Team Donations Activity 2000 1999 $18,195 $250,000 $ - $100,134 $2,335,111 $2,886,543 $1,094,908 .. 607 - - - - 59,180 53,591 - - - - 1,362 107,646 - 13,556 - - 196,659 311,063 ,.., $18,802 $250,000 $13,556 $100,134 $2,335,111 $3,143,744 $1,567,208 $ - $ - $3,170 $ - $ - $37,599 $35,045 - - - - - 10,334 10,219 - - 313 - - 10,617 12,980 - - - - - 108,686 39,414 - - 9,533 - - 59,790 131,153 - - - - - - 848,528 - - 540 2,169 - 2,844 305 0 0 13,556 2,169 0 229,870 1,077,644 ,� - - - - - 1,444 6,215 18,802 250,000 - 97,965 2,335,111 2,912,430 555,472 - - - - - - (72,123) 18,802 250,000 0 97,965 2,335,111 2,913,874 489,564 $18,802 $250,000 $13,556 $100,134 $2,335,111 $3,143,744 $1,567,208 81 CITY OF FRIDLEY, MINNESOTA -• SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2000 „_, With comparative totals for year ended December 31, 1999 Cable Grant Solid Waste HRA TV Management Abatement Reimbursement Revenues: Licenses and permits $120,738 $ - $ - $ - Intergovernmental revenue - 613,284 75,218 14,520 Charges for services 532 - 205,469 - Fines and forfeits - - - - Investment income 13,547 - - - Donations - - - - Miscellaneous 5,000 2,068 2,921 - Total revenues 139,817 615,352 283,608 14,520 Expenditures: Current: General government 84,694 612,167 312,708 13,740 -, Public safety - - - - Recreation and naturalist - - - - Capital outlay 44,704 - - - Total expenditures 129,398 612,167 312,708 13,740 Excess(deficiency)of revenues - over(under) expenditures 10,419 3,185 (29,100) 780 Other financing sources(uses): Operating transfers in - 235 78,283 - Operating transfer to component unit (3,420) - - - Total other financing sources (uses) 0 (3,185) 78,283 0 Excess (deficiency)of revenues and other financing sources over(under) expenditures and other financing uses 10,419 - 49,183 780 Fund balance (deficit) -January 1 199,353 - (47,739) - Fund balance- December 31 $209,772 $0 $1,444 $780 82 Exhibit C-2 Drug and Chemical Gambling Housing Assessment F.C.C. Police Totals ... Forfeiture Revitalization Team Donations Activity 2000 1999 $ - $ - $ - $ - $ - $120,738 $143,640 - - 53,055 - 2,242,586 2,998,663 1,380,075 - - - - - 206,001 212,123 13,160 - - - - 13,160 23,399 .... - - - 6,987 92,525 113,059 8,482 - - - 5,000 - 5,000 6,857 - - 2,225 - - 12,214 2,473 13,160 0 55,280 11,987 2,335,111 3,468,835 1,777,049 - - - - - - 1,023,309 746,668 11,832 - 38,945 - - 50,777 53,800 - - - - - - 2,230 - 4,105 - - 4,777 - 53,586 153,156 15,937 0 38,945 4,777 0 1,127,672 955,854 - (2,777) - 16,335 7,210 2,335,111 2,341,163 821,195 - - - 8,049 - - 86,567 60,251 - - - - - (3,420) (848,528) 0 0 8,049 0 0 83,147 (788,277) - (2,777) - 24,384 7,210 2,335,111 2,424,310 32,918 21,579 250,000 (24,384) 90,755 - 489,564 456,646 $18,802 $250,000 $0 $97,965 $2,335,111 $2,913,874 $489,564 83 Exhibit C-3 CITY OF FRIDLEY, MINNESOTA CABLE TV SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 2000 and 1999 -- Assets 2000 1999 Cash and investments $181,167 $174,225 Accounts receivable 40,794 37,241 Total assets $221,961 $211,466 Liabilities and Fund Balance Liabilities: Accounts payable $337 $450 a Deposits payable 10,334 10,219 Salaries payable 1,518 1,444 Total liabilities 12,189 12,113 ., Fund balance: Unreserved: Designated for subsequent year's expenditures - 6,215 Designated for special revenue programs 209,772 193,138 Total fund balance 209,772 199,353 a Total liabilities and fund balance $221,961 $211,466 a 84 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, 2000 With comparative actual amounts for year ended December 31, 1999 2000 Variance Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Licenses-franchise fee $140,000 $120,738 ($19,262) $143,640 Charges for services - 532 532 816 Investment income 7,500 13,547 6,047 5,049 Miscellaneous 0 5,000 5,000 - Total revenues 147,500 139,817 (7,683) 149,505 Expenditures: Current: General government: Personal services 63,178 63,080 98 60,072 Supplies and other charges 45,537 21,614 23,923 29,461 Capital outlay 45,000 44,704 296 36,179 Total expenditures 153,715 129,398 24,317 125,712 a Excess (deficiency) of revenues over(under) expenditures ($6,215) 10,419 $16,634 23,793 Fund balance-January 1 199,353 175,560 Fund balance- December 31 $209,772 $199,353 a a a a a a a 85 Exhibit C-5 CITY OF FRIDLEY, MINNESOTA GRANT MANAGEMENT SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 2000 and 1999 Assets 2000 1999 Cash and investments $1,936 $556,038 Due from other governments 127,471 350,724 Total assets $129,407 $906,762 Liabilities and Fund Balance Liabilities: Accounts payable 13,810 9,283 Salaries payable 6,776 9,344 Deferred revenue 108,686 39,414 Due to component unit - 848,528 Due to other governments 135 193 Total liabilities 129,407 906,762 Fund balance - - Total liabilities and fund balance $129,407 $906,762 86 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, 2000 With comparative actual amounts for year ended December 31, 1999 2000 Variance — Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: a Intergovernmental revenue: Federal $435,807 $450,628 $14,821 $341,621 State 157,307 162,656 5,349 906,847 Miscellaneous - 2,068 2,068 2,162 –. Total revenues 593,114 615,352 22,238 1,250,630 Expenditures: Current: General government: Personal services 235,684 235,684 - 238,982 �` Supplies and other charges 376,483 376,483 - 95,122 Capital outlay - - - 90,081 Total expenditures 612,167 612,167 0 424,185 Excess(deficiency) of revenues over(under) expenditures (19,053) 3,185 22,238 826,445 Other financing sources(uses): Operating transfers in (out): General Fund - 235 235 Component Unit - (3,420) (3,420) (848,528) "' Total other financing sources(uses) 0 (3,185) (3,185) (848,528) Excess(deficiency) of revenues and other financing sources over(under) expenditures and other financing uses ($19,053) 0 $19,053 (22,083) - Fund balance-January 1 - 22,083 Fund balance- December 31 $0 $0 a a a a 87 Exhibit C-7 CITY OF FRIDLEY, MINNESOTA .. SOLID WASTE ABATEMENT SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 2000 and 1999 Assets 2000 1999 •-r Accounts receivable $17,779 $16,350 Due from other governments 55,632 63,282 Total assets $73,411 $79,632 Liabilities and Fund Balance ., Liabilities: Accounts payable $20,157 $18,472 Salaries payable 2,010 1,889 Due to other funds 49,800 107,010 Total liabilities 71,967 127,371 Fund balance: Unreserved: Designated for subsequent year's expenditures 1,444 - '^ Undesignated - (47,739) Total fund balance 1,444 (47,739) Total liabilities and fund balance $73,411 $79,632 88 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, 2000 With comparative actual amounts for year ended December 31, 1999 2000 Variance Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue: State $75,000 $75,218 $218 $73,336 Charges for services 207,164 205,469 (1,695) 211,307 Miscellaneous - 2,921 2,921 2,168 Total revenues 282,164 283,608 1,444 286,811 Expenditures: Current: General government: Personal services 52,011 52,011 - 53,449 Supplies and other charges 260,697 260,697 - 254,732 Capital outlay - - - 1,684 Total expenditures 312,708 312,708 0 309,865 Excess(deficiency) of revenues over(under)expenditures (30,544) (29,100) 1,444 (23,054) Other financing sources(uses): Operating transfer in: General fund - 78,283 78,283 - Excess(deficiency) of revenues and other financing sources over(under)expenditures ($30,544) 49,183 $79,727 (23,054) Fund balance (deficit) -January 1 (47,739) (24,685) Fund balance(deficit)- December 31 $1,444 ($47,739) 89 r Exhibit C-9 CITY OF FRIDLEY, MINNESOTA HRA REIMBURSEMENT SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 2000 and 1999 Assets 2000 1999 Due from component unit $1,362 $4,703 Total assets $1,362 $4,703 Liabilities and Fund Balance Liabilities: Accounts payable $125 $49 Due to other funds 457 4,542 „, Due to other governments - 112 Total liabilities 582 4,703 Fund balance: Unreserved: Designated for special revenue programs 780 - ^ Total liabilities and fund balance $1,362 $4,703 r-. 90 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 31,2000 With comparative actual amounts for year ended December 31, 1999 2000 Variance Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue: Housing Redevelopment Authority $13,740 $14,405 $665 $14,850 Miscellaneous - 115 115 - Total revenues 13,740 14,520 780 14,850 Expenditures: Current: General government: Supplies and other charges 13,740 13,740 - 14,850 a Excess(deficiency)of revenues over(under) expenditures $0 780 $780 0 Fund balance-January 1 - - Fund balance- December 31 $780 $0 a a 91 Exhibit C-11 CITY OF FRIDLEY, MINNESOTA .� DRUG AND GAMBLING FORFEITURE SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 2000 and 1999 Assets 2000 1999 Cash and investments $18,195 $23,890 Due from other governments 607 - Total assets $18,802 $23,890 Liabilities and Fund Balance Liabilities: Accounts payable $ - $2,311 .. Fund balance: Unreserved: Designated for special revenue programs 18,802 21,579 Total liabilities and fund balance $18,802 $23,890 a a 92 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, 2000 With comparative actual amounts for year ended December 31, 1999 2000 Variance Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Fines and forfeits $15,937 $13,160 ($2,777) $23,399 Expenditures: Current: Public safety: Supplies and other charges 11,832 11,832 - 8,033 Capital outlay 4,105 4,105 - 7,761 Total expenditures 15,937 15,937 0 15,794 Excess(deficiency) of revenues over(under) expenditures $0 (2,777) ($2,777) 7,605 Fund balance-January 1 21,579 13,974 Fund balance- December 31 $18,802 $21,579 93 Exhibit C-13 CITY OF FRIDLEY, MINNESOTA HOUSING REVITALIZATION SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 2000 and 1999 Assets 2000 1999 Cash and investments $250,000 $250,000 Total assets $250,000 $250,000 Liabilities and Fund Balance Liabilities $ - $ - Fund balance: .. Unreserved: Designated for special revenue programs 250,000 250,000 Total liabilities and fund balance $250,000 $250,000 ice► ire r 94 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 31,2000 With comparative actual amounts for year ended December 31, 1999 2000 Variance Favorable 1999 Budget Actual (Unfavorable) Actual — Revenues $ - $ - $ - $ - Expenditures: Capital outlay 250,000 - 250,000 - Excess(deficiency) of revenues over(under) expenditures (250,000) 0 250,000 0 Other financing sources(uses): Operating transfer in: Special Assessment Debt Service Fund 250,000 - (250,000) 60,251 Excess(deficiency) of revenues and other financing sources over(under)expenditures $0 0 $0 60,251 • Fund balance(deficit) -January 1 250,000 189,749 — Fund balance- December 31 $250,000 $250,000 95 Exhibit C-15 CITY OF FRIDLEY, MINNESOTA CHEMICAL ASSESSMENT TEAM SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 2000 and 1999 ., Assets 2000 1999 Due from other governments $13,556 $ - Total assets $13,556 $0 Liabilities and Fund Balance Liabilities: Accounts payable $3,170 $4,480 Salaries payable 313 303 ,. Due to other funds 9,533 19,601 Due to other governments 540 - Total liabilities 13,556 24,384 Fund balance: Unreserved: Undesignated - (24,384) '~ Total liabilities and fund balance $13,556 $0 S 96 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, 2000 With comparative actual amounts for year ended December 31, 1999 2000 Variance Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue: Federal $ - $447 $447 $170 — State 38,945 52,608 13,663 43,251 Miscellaneous - 2,225 2,225 - Total revenues 38,945 55,280 16,335 43,421 Expenditures: _ Current: Public safety: Personal services 9,989 9,989 - 12,401 Supplies and other charges 28,956 28,956 - 33,366 Capital outlay - - - 3,084 ... Total expenditures 38,945 38,945 0 48,851 Excess(deficiency) of revenues over(under) expenditures 0 16,335 16,335 (5,430) .r Other financing sources(uses): Operating transfer in: General Fund - 8,049 8,049 - — Excess(deficiency) of revenues and other financing sources over(under)expenditures $0 24,384 $24,384 (5,430) Fund balance (deficit) -January 1 (24,384) (18,954) Fund balance (deficit) - December 31 $0 ($24,384) y 97 r Exhibit C-17 CITY OF FRIDLEY, MINNESOTA ., F.C.C. DONATIONS SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 2000 and 1999 Assets 2000 1999 Cash and investments $100,134 $90,755 Total assets $100,134 $90,755 Liabilities and Fund Balance Liabilities: Due to other governments $2,169 $ - Fund balance: Unreserved: Designated for special revenue programs 97,965 90,755 4 Total liabilities and fund balance $100,134 $90,755 98 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 r.. Year Ended December 31, 2000 With comparative actual amounts for year ended December 31, 1999 2000 Variance Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Investment income $ - $6,987 $6,987 $3,433 Donations 4,777 5,000 223 5,000 Total revenues 4,777 11,987 7,210 8,433 Expenditures: Current: Recreation and naturalist: Supplies and other charges - - - 2,230 Capital outlay 4,777 4,777 - 14,367 Total expenditures 4,777 4,777 0 16,597 Excess(deficiency)of revenues over(under)expenditures $0 7,210 $7,210 (8,164) Fund balance-January 1 90,755 98,919 Fund balance- December 31 $97,965 $90,755 I.� 99 Exhibit C-19 CITY OF FRIDLEY, MINNESOTA — POLICE ACTIVITY SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 2000 and 1999 Assets 2000 1999 Cash and investments $2,335,111 $ - Total assets $2,335,111 $0 Liabilities and Fund Balance Liabilities $ - $ - Fund balance: Unreserved: Designated for special revenue programs 2,335,111 - Total liabilities and fund balance $2,335,111 $0 100 Exhibit C-20 CITY OF FRIDLEY, MINNESOTA POLICE ACTIVITY SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL Year Ended December 31, 2000 With comparative actual amounts for year ended December 31, 1999 2000 Variance Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: .• Intergovernmental: PERA refund $2,242,586 $2,242,586 $ - $ - Investment income - 92,525 92,525 - Total revenues 2,242,586 2,335,111 92,525 0 Expenditures - - - - ._ Excess of revenues over expenditures $2,242,586 2,335,111 $92,525 0 Fund balance-January 1 - - r Fund balance- December 31 $2,335,111 $0 101 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, 2000 and 1999 .... Special Tax Totals Assets Assessment Increment 2000 1999 Cash and investments $8,517,173 $39,536 $8,556,709 $8,680,329 Receivables: — Special assessments: Unremitted 23,746 - 23,746 6,346 Delinquent 3,204 - 3,204 20,357 Deferred 1,511,616 - 1,511,616 1,231,732 Loan receivable from component unit 757,662 - 757,662 805,410 Due from other funds - - - 204,958 Due from other governments - - - 71,667 Total assets $10,813,401 $39,536 $10,852,937 $11,020,799 Liabilities and Fund Balance Liabilities: Accounts payable $ - $ - $ - $3,232 -, Deferred revenue 1,514,820 - 1,514,820 1,252,091 Due to other funds - - - 204,958 Due to component unit - - - 93,263 .,.. Due to other governments 3,899 - 3,899 - Total liabilities 1,518,719 0 1,518,719 1,553,544 — Fund balance: Reserved for debt service 612,779 39,536 652,315 730,457 Reserved for long term receivable 757,662 - 757,662 805,410 Unreserved: Undesignated 7,924,241 - 7,924,241 7,931,388 Total fund balance 9,294,682 39,536 9,334,218 9,467,255 Total liabilities and fund balance $10,813,401 $39,536 $10,852,937 $11,020,799 104 Exhibit D-2 CITY OF FRIDLEY, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2000 With comparative totals for year ended December 31, 1999 Special Tax Totals Assessment Increment 2000 1999 Revenues: Special assessments $522,431 $ - $522,431 $396,385 Investment income 603,321 - 603,321 276,793 Interest on loan 39,680 - 39,680 68,826 Total revenues 1,165,432 0 1,165,432 742,004 Expenditures: Debt service: Principal retirement 225,000 75,000 300,000 295,000 Interest and fiscal charges 52,927 701,945 754,872 731,396 Miscellaneous 3,900 - 3,900 3,284 Total expenditures 281,827 776,945 1,058,772 1,029,680 Excess(deficiency) of revenues over(under) expenditures 883,605 (776,945) 106,660 (287,676) Other financing sources(uses): Operating transfers in (out): General Fund (232,900) - (232,900) (232,900) Capital Improvements Fund (707,486) - (707,486) (281,386) Special Revenue Fund - - - (60,251) HRA Component Unit (75,499) 776,188 700,689 648,200 - Total other financing sources(uses) (1,015,885) 776,188 (239,697) 73,663 Excess(deficiency)of revenues and other financing "' sources over(under)expenditures and other financing uses (132,280) (757) (133,037) (214,013) Fund balance-January 1 9,426,962 40,293 9,467,255 9,681,268 Fund balance-December 31 $9,294,682 $39,536 $9,334,218 $9,467,255 105 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 31,2000 - With comparative totals for December 31, 1999 - Capital Special Totals Assets Improvements Assessments 2000 1999 Cash and investments $4,908,267 $492,462 $5,400,729 $5,055,149 Receivables: Accounts - - - 3,039 Taxes: Unremitted 920 - 920 1,139 Delinquent 4,020 - 4,020 1,279 Special assessments: Unremitted 266 - 266 - Delinquent - 2,433 2,433 2,302 Deferred 5,320 59,465 64,785 72,559 Due from other funds - - - 743,582 Due from other governments 62,594 - 62,594 - Total assets $4,981,387 $554,360 $5,535,747 $5,879,049 Liabilities and Fund Balance - Liabilities: Accounts payable $687 $338 $1,025 $7,632 Contracts payable - - - 62,751 Salaries payable - 259 259 - Deferred revenue 9,340 61,898 71,238 75,530 Due to other funds - - - 743,383 _ Due to other governments 169 - 169 7,500 Total liabilities 10,196 62,495 72,691 896,796 Fund balance: "' Reserved for encumbrances 393,040 - 393,040 336,559 Unreserved: Designated for fixed asset replacement 1,170,123 - 1,170,123 1,156,460 Designated for park improvements 1,572,971 - 1,572,971 1,580,984 Designated for street improvements 1,835,057 514,466 2,349,523 2,237,058 Undesignated - (22,601) (22,601) (328,808) Total fund balance 4,971,191 491,865 5,463,056 4,982,253 Total liabilities and fund balance $4,981,387 $554,360 $5,535,747 $5,879,049 109 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, 2000 With comparative totals for year ended December 31, 1999 Capital Special Totals Improvements Assessments 2000 1999 Revenues: Taxes: -- Current ad valorem taxes $70,744 $ - $70,744 $72,863 Delinquent ad valorem taxes 813 - 813 237 Special assessments 1,550 15,286 16,836 20,193 .- Total taxes 73,107 15,286 88,393 93,293 Intergovernmental revenue: State credits 15,000 - 15,000 15,000 State aid for construction 659,615 - 659,615 235,464 County - - - 340,367 Other 32,170 - 32,170 123,078 - Total intergovernmental revenue 706,785 0 706,785 713,909 Investment income 360,305 10,021 370,326 224,756 Miscellaneous revenue: Refunds and reimbursements - - - 7,597 Other 68,129 1,225 69,354 97,414 Total miscellaneous revenue 68,129 1,225 69,354 105,011 Total revenues 1,208,326 26,532 1,234,858 1,136,969 110 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, 2000 With comparative totals for year ended December 31, 1999 Capital Special Totals Improvements Assessments 2000 1999 — Expenditures: Current: Public works $44,962 $108,936 $153,898 $369,268 Capital outlay 320,206 1,072,671 1,392,877 3,148,916 Total expenditures 365,168 1,181,607 1,546,775 3,518,184 Excess (deficiency) of revenues over(under)expenditures 843,158 (1,155,075) (311,917) (2,381,215) Other financing sources (uses): Operating transfers in (out): Water Fund - 85,234 85,234 100,000 Sewer Fund - - - 75,000 Storm Water Fund - - - 120,000 Special Assessment Debt Service Fund - 707,486 707,486 281,386 Capital Improvement Fund - 1,183,028 1,183,028 2,927,081 Special Assessments Capital Projects Fund (1,183,028) - (1,183,028) (2,927,081) Total other financing sources(uses) (1,183,028) 1,975,748 792,720 576,386 Excess (deficiency)of revenues and other financing sources over(under) expenditures and other financing uses (339,870) 820,673 480,803 (1,804,829) Fund balance (deficit) -January 1 5,311,061 (328,808) 4,982,253 6,787,082 — Fund balance- December 31 $4,971,191 $491,865 $5,463,056 $4,982,253 a 111 Exhibit E-3 CITY OF FRIDLEY, MINNESOTA CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND COMPARATIVE BALANCE SHEET December 31, 2000 and 1999 ._ Totals Assets 2000 1999 Cash and investments $4,908,267 $4,633,955 Receivables: Taxes: Unremitted 920 1,139 Delinquent 4,020 1,279 — Special assessments: Unremitted 266 - Delinquent - 103 — Deferred 5,320 6,552 Due from other funds - 743,582 Due from other governments 62,594 - — Total assets $4,981,387 $5,386,610 ., Liabilities and Fund Balance Liabilities: Accounts payable $687 $5,033 Contracts payable - 62,751 Deferred revenue 9,340 7,765 Due to other governments 169 - — Total liabilities 10,196 75,549 Fund balance: –. Reserved for encumbrances 393,040 336,559 Unreserved: Designated for fixed asset replacement 1,170,123 1,156,460 Designated for park improvements 1,572,971 1,580,984 .� Designated for street improvements 1,835,057 2,237,058 Total fund balance 4,971,191 5,311,061 Total liabilities and fund balance $4,981,387 $5,386,610 112 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, 2000 With comparative actual amounts for year ended December 31, 1999 2000 Variance Favorable 1999 Budget Actual (Unfavorable) Actual Revenues: Taxes: Current ad valorem taxes $70,550 $70,744 $194 $72,863 Delinquent ad valorem taxes - 813 813 237 Total taxes 70,550 71,557 1,007 73,100 Special assessments - 1,550 1,550 1,509 Intergovernmental revenue: State credits 15,000 15,000 - 15,000 State aid for construction 209,534 659,615 450,081 235,464 Other - 32,170 _ 32,170 6,219 Total intergovernmental revenue 224,534 706,785 482,251 256,683 Investment income 417,225 360,305 (56,920) 219,968 Miscellaneous revenue: Other 30,000 68,129 38,129 93,666 Total revenues 742,309 1,208,326 466,017 644,926 Expenditures: Current: Public works 44,962 44,962 - 46,273 Capital outlay 320,206 320,206 - 582,261 Total expenditures 365,168 365,168 0 628,534 Excess(deficiency) of revenues over (under)expenditures 377,141 843,158 466,017 16,392 Other financing sources(uses): Operating transfers in (out): Special Assessment Capital Projects Fund (1,183,028) (1,183,028) - (2,927,081) Excess(deficiency)of revenues and other financing sources over(under)expenditures and other financing uses ($805,887) (339,870) $466,017 (2,910,689) Fund balance-January 1 5,311,061 8,221,750 Fund balance- December 31 $4,971,191 $5,311,061 113 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, 2000 ..., With comparative totals for December 31, 1999 Public Totals Assets Liquor Utilities 2000 1999 Current assets: Cash and investments $629,598 $7,813,070 $8,442,668 $7,919,411 -. Restricted investments - - - 1,139,431 Accounts receivable 2,850 1,407,296 1,410,146 1,342,413 Taxes receivable: -- Unremitted - 182 182 - Delinquent - 135 135 - Special assessments receivable - 151,158 151,158 173,700 Accrued interest receivable - - - 21,483 Due from other funds - 1,745 1,745 899 Due from other governments - 3,141 3,141 28,992 Inventories, at cost 645,932 6,205 652,137 754,339 Prepaid items - 185,555 185,555 186,248 Total current assets 1,278,380 9,568,487 10,846,867 11,566,916 Property and equipment, at cost: Property and equipment 1,260,335 32,380,200 33,640,535 33,240,511 Less: accumulated depreciation (301,315) (12,480,279) (12,781,594) (11,880,306) Net property and equipment 959,020 19,899,921 20,858,941 21,360,205 " Total assets $2,237,400 $29,468,408 $31,705,808 $32,927,121 Liabilities and Fund Equity Current liabilities: Accounts payable $227,774 $59,560 $287,334 $380,763 -- Contracts payable - - - 87,601 Salaries payable 15,967 28,205 44,172 43,774 Due to other funds 179 24 203 94 Due to other governments 52,972 13,766 66,738 63,481 Accrued interest payable - 78,231 78,231 116,188 Bonds payable-current - 350,000 350,000 310,000 Total current liabilities 296,892 529,786 826,678 1,001,901 Long-term liabilities: Bonds payable - 3,511,779 3,511,779 4,994,849 - Total liabilities 296,892 4,041,565 4,338,457 5,996,750 Fund equity: _, Contributed capital - 10,427,575 10,427,575 10,797,640 Retained earnings: Reserved for capital outlay - 9,128,000 9,128,000 2,249,000 Unreserved 1,940,508 5,871,268 7,811,776 13,883,731 - Total fund equity 1,940,508 25,426,843 27,367,351 26,930,371 Total liabilities and fund equity $2,237,400 $29,468,408 $31,705,808 $32,927,121 116 Exhibit F-2 CITY OF FRIDLEY, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Year Ended December 31,2000 With comparative totals for year ended December 31, 1999 Public Totals Liquor Utilities _ 2000 1999 Sales and cost of sales: .. Sales $5,200,127 $ - $5,200,127 $3,686,984 Cost of sales 4,134,935 - 4,134,935 2,905,867 Gross profit 1,065,192 0 1,065,192 781,117 Operating revenues: Water sales and sewer rents - 5,150,374 5,150,374 5,389,003 Other revenues - 13,403 13,403 18,885 Total operating revenues 0 5,163,777 5,163,777 5,407,888 Operating expenses: - Personal services 448,959 1,082,618 1,531,577 1,403,675 Supplies and other charges: Disposal charges - 2,439,370 2,439,370 2,677,625 ,^ Other 399,515 502,672 902,187 863,982 Depreciation 77,935 940,713 1,018,648 910,783 Total operating expenses 926,409 4,965,373 5,891,782 5,856,065 . Operating income 138,783 198,404 337,187 332,940 Non-operating revenues(expenses): Intergovernmental revenue - 34,945 34,945 - "` Investment income 44,785 534,473 579,258 309,955 Debt service - (199,893) (199,893) (283,058) Special assessments - 30,271 30,271 16,375 - Loss on disposal of fixed assets - (59,554) (59,554) (22,055) Total non-operating revenues(expenses) 44,785 340,242 385,027 21,217 Income before operating transfers 183,568 538,646 722,214 354,157 Operating transfers in (out): General Fund (200,000) - (200,000) (170,000) Special Assessment Capital Projects Fund - (85,234) (85,234) (295,000) Total transfers in (out) (200,000) (85,234) (285,234) (465,000) Net income(loss) (16,432) 453,412 436,980 (110,843) Credit arising from transfer of depreciation on contributed capital - 370,065 370,065 370,065 - Retained earnings-January 1 1,956,940 14,175,791 16,132,731 15,873,509 Retained earnings- December 31 $1,940,508 $14,999,268 $16,939,776 $16,132,731 117 Exhibit F-3 CITY OF FRIDLEY, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS Year Ended December 31, 2000 With comparative totals for year ended December 31, 1999 Public Totals Liquor Utilities 2000 1999 Cash flows from operating activities: Operating income $138,783 $198,404 $337,187 $332,940 Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation 77,935 940,713 1,018,648 910,783 Change in assets and liabilities: Decrease (increase) in receivables (2,030) (21,994) (24,024) 526,805 Decrease (increase) in due from other funds - (846) (846) 427 Decrease (increase) in due from other governments - 25,851 25,851 199,822 Decrease(increase) in inventories 102,626 (424) 102,202 (450,387) Decrease (increase) in prepaid items 17,096 (16,403) 693 64,244 Increase(decrease) in payables (188,544) (26,679) (215,223) 266,682 Net cash flows from operating activities 145,866 1,098,622 1,244,488 1,851,316 -� Cash flows from noncapital financing activities: Intergovernmental revenue - 34,945 34,945 - Operating transfers in (out) (200,000) (85,234) (285,234) (465,000) Special assessment collections - 30,271 30,271 16,375 Net cash flows from noncapital financing activities (200,000) (20,018) (220,018) (448,625) ., Cash flows from capital and related financing activities: Acquisition and construction of fixed assets (36,185) (540,754) (576,939) (1,331,734) Principal paid on revenue bonds - (1,443,070) (1,443,070) (298,070) Interest and paying agent fees on revenue bonds - (199,893) (199,893) (283,058) Net cash flows from capital and related financing activities (36,185) (2,183,717) (2,219,902) (1,912,862) Cash flows from investing activities: Investment income 44,785 534,473 579,258 309,955 Net increase (decrease) in cash and cash equivalents (45,534) (570,640) (616,174) (200,216) Cash and cash equivalents-January 1 675,132 8,383,710 9,058,842 9,259,058 Cash and cash equivalents- December 31 $629,598 $7,813,070 $8,442,668 $9,058,842 118 Exhibit F-4 CITY OF FRIDLEY, MINNESOTA LIQUOR ENTERPRISE FUND COMPARATIVE BALANCE SHEET December 31, 2000 and 1999 Totals Assets 2000 1999 Current assets: Cash and investments $629,598 $675,132 Accounts receivable 2,850 820 Inventories, at cost 645,932 748,558 — Prepaid items - 17,096 Total current assets 1,278,380 1,441,606 Property and equipment, at cost: Land 151,946 151,946 Buildings 130,211 130,211 Improvements other than buildings 661,315 627,555 — Machinery and equipment 16,440 24,640 Office equipment and furniture 300,423 297,998 Total property and equipment 1,260,335 1,232,350 Less: accumulated depreciation (301,315) (231,580) Net property and equipment 959,020 1,000,770 . Total assets $2,237,400 $2,442,376 Liabilities and Fund Equity Current liabilities: Accounts payable $227,774 $329,445 Contracts payable - 87,601 Salaries payable 15,967 15,470 Due to other funds 179 80 Due to other governments 52,972 52,840 Total current liabilities 296,892 485,436 Fund equity: Retained earnings- unreserved 1,940,508 1,956,940 Total liabilities and fund equity $2,237,400 $2,442,376 .. 119 Exhibit F-5 CITY OF FRIDLEY, MINNESOTA — LIQUOR ENTERPRISE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Years ended December 31, 2000 and 1999 Totals .. 2000 1999 Sales and cost of sales: Sales $5,200,127 $3,686,984 Cost of sales 4,134,935 2,905,867 Gross profit 1,065,192 781,117 Operating expenses: Selling: Personal services 307,493 198,919 Supplies and other charges 69,341 30,863 Total selling expenses 376,834 229,782 Administration and overhead: Personal services 141,466 143,206 Supplies and other charges 330,174 220,331 Depreciation 77,935 20,085 Total administration and overhead 549,575 383,622 Total operating expenses 926,409 613,404 — Operating income 138,783 167,713 Non-operating revenues(expenses): Investment income 44,785 54,007 Loss on disposal of fixed assets - (14,095) Total non-operating revenues 44,785 39,912 Income before operating transfers 183,568 207,625 Operating transfers in (out): General Fund (200,000) (170,000) Net income (loss) (16,432) 37,625 Retained earnings-January 1 1,956,940 1,919,315 Retained earnings- December 31 $1,940,508 $1,956,940 120 Exhibit F-6 • CITY OF FRIDLEY, MINNESOTA LIQUOR ENTERPRISE FUND COMPARATIVE STATEMENT OF CASH FLOWS Years ended December 31,2000 and 1999 Totals 2000 1999 Cash flows from operating activities: Operating income $138,783 $167,713 Adjustments to reconcile operating income (loss)to net cash flows from operating activities: Depreciation 77,935 20,085 Loss on disposal of fixed assets - 14,095 Changes in assets and liabilities: Decrease (increase) in receivables (2,030) (791) Decrease(increase) in inventories 102,626 (452,395) Decrease (increase) in prepaid items 17,096 (4,365) Increase (decrease) in payables (188,544) 270,115 Net cash flows from operating activities 145,866 14,457 Cash flows from noncapital financing activities: Operating transfers in (out) (200,000) (170,000) Cash flows from capital and related financing activities: Acquisition and construction of fixed assets (36,185) (809,076) Cash flows from investing activities: Investment income 44,785 54,007 Net increase (decrease) in cash and cash equivalents (45,534) (910,612) Cash and cash equivalents-January 1 675,132 1,585,744 Cash and cash equivalents- December 31 $629,598 $675,132 121 Exhibit F-7 Page 1 of 2 CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITIES ENTERPRISE FUND COMPARATIVE BALANCE SHEET December 31, 2000 and 1999 Totals Assets 2000 1999 Current assets: Cash and investments $7,813,070 $7,244,279 ^ Restricted investments - 1,139,431 Receivables: Accounts 1,407,296 1,341,593 Taxes: Unremitted 182 - Delinquent 135 - Accrued interest - 21,483 Special assessments 151,158 173,700 Due from other funds 1,745 899 Due from other governments 3,141 28,992 Inventories, at cost 6,205 5,781 Prepaid items 185,555 169,152 Total current assets 9,568,487 10,125,310 ^ Property and equipment, at cost: Land 154,531 154,531 Buildings 1,519,535 1,519,535 Improvements other than buildings 10,517,640 10,155,350 Machinery and equipment 2,136,274 2,126,525 Office equipment and furniture 10,650 10,650 Water and sewer lines 18,041,570 18,041,570 Total property and equipment 32,380,200 32,008,161 Less: accumulated depreciation (12,480,279) (11,648,726) Net property and equipment 19,899,921 20,359,435 Total assets $29,468,408 $30,484,745 —, 122 Exhibit F-7 Page 2 of 2 CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITIES ENTERPRISE FUND COMPARATIVE BALANCE SHEET December 31,2000 and 1999 Totals Liabilities and Fund Equity 2000 1999 Current liabilities: Accounts payable $59,560 $51,318 Salaries payable 28,205 28,304 Due to other funds 24 14 Due to other governments 13,766 10,641 Accrued interest payable 78,231 116,188 Bonds payable-current 350,000 310,000 Total current liabilities 529,786 516,465 Long-term liabilities: Bonds payable 3,511,779 4,994,849 Total liabilities 4,041,565 5,511,314 Fund equity: Contributed capital 10,427,575 10,797,640 Retained earnings: Reserved for capital outlay 9,128,000 2,249,000 Unreserved 5,871,268 11,926,791 Total fund equity 25,426,843 24,973,431 Total liabilities and fund equity $29,468,408 $30,484,745 123 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, 2000 and 1999 Totals 2000 1999 Operating revenues: Water $1,712,797 $1,597,714 Sewer 3,114,030 3,468,816 Storm sewer 323,547 322,473 Other revenues 13,403 18,885 Total operating revenues 5,163,777 5,407,888 Operating expenses: Personal services 1,082,618 1,061,550 Supplies and other charges: Disposal charges 2,439,370 2,677,625 Other 502,672 612,788 Depreciation: Purchased assets 570,648 520,633 Contributed assets 370,065 370,065 Total operating expenses 4,965,373 5,242,661 Operating income 198,404 165,227 — Nonoperating revenues(expenses): Intergovernmental revenue 34,945 - Investment income 534,473 255,948 Debt service (199,893) (283,058) Special assessments 30,271 16,375 Loss on disposal of fixed assets (59,554) (7,960) Total nonoperating revenues (expenses) 340,242 (18,695) Income before operating transfers 538,646 146,532 Operating transfers in (out): Special Assessment Capital Project Fund (85,234) (295,000) — Net income(loss) 453,412 (148,468) Credit arising from transfer of depreciation on contributed capital 370,065 370,065 Retained earnings-January 1 14,175,791 13,954,194 Retained earnings- December 31 $14,999,268 $14,175,791 124 Exhibit F-9 -. CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITIES ENTERPRISE FUND COMPARATIVE STATEMENT OF CASH FLOWS .. Years ended December 31, 2000 and 1999 Totals 2000 1999 Cash flows from operating activities: Operating income $198,404 $165,225 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation 940,713 890,698 a Change in assets and liabilities: Decrease (increase) in receivables (21,994) 527,598 Decrease(increase) in due from other funds (846) 427 Decrease(increase) in due from other governments 25,851 199,822 Decrease(increase) in inventories (424) 2,008 Decrease(increase) in prepaid items (16,403) 68,609 ._ Increase (decrease) in payables (26,679) (3,433) Net cash flows from operating activities 1,098,622 1,850,954 Cash flows from noncapital financing activities Intergovernmental revenue 34,945 - Operating transfers out (85,234) (295,000) Special assessments collections 30,271 16,375 — Net cash flows from noncapital financing activities (20,018) (278,625) Cash flows from capital and related financing activities: Acquisition and construction of fixed assets (540,754) (536,753) Principal paid on revenue bonds (1,443,070) (298,070) Interest and paying agent fees paid on revenue bonds (199,893) (283,058) Net cash flows from capital and related financing activities (2,183,717) (1,117,881) — Cash flows from investing activities: Investment income 534,473 255,948 Net increase (decrease) in cash and cash equivalents (570,640) 710,396 Cash and cash equivalents-January 1 8,383,710 7,673,314 Cash and cash equivalents- December 31 $7,813,070 $8,383,710 a a 125 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 INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET December 31, 2000 With comparative totals for December 31, 1999 .., Employee Self Information Totals Assets Benefits Insurance Systems 2000 1999 Current assets: Cash and investments $1,156,551 $1,996,292 $820,866 $3,973,709 $3,879,392 Accounts receivable - 21,602 - 21,602 1,698 Due from component unit - 544 - 544 - -. Due from other governments - - - - 26 Total current assets 1,156,551 2,018,438 820,866 3,995,855 3,881,116 Property and equipment, at cost: Property and equipment - - 733,948 733,948 643,715 Less: accumulated depreciation - - (479,907) (479,907) (432,325) Net property and equipment 0 0 254,041 254,041 211,390 "., Total assets $1,156,551 $2,018,438 $1,074,907 $4,249,896 $4,092,506 Liabilities and Fund Equity Current liabilities: Accounts payable $ - $30,220 $2,500 $32,720 $70,416 Payroll deductions payable 70,368 - - 70,368 62,665 Compensated absences payable 805,858 - - 805,858 838,866 .-, Due to other governments - - 33,995 33,995 - Total liabilities 876,226 30,220 36,495 942,941 971,947 Fund equity: Contributed capital - 1,000,000 827,822 1,827,822 1,830,850 Retained earnings: Reserved for employee benefits 280,325 - - 280,325 211,382 Unreserved - 988,218 210,590 1,198,808 1,078,327 Total fund equity 280,325 1,988,218 1,038,412 3,306,955 3,120,559 Total liabilities and fund equity $1,156,551 $2,018,438 $1,074,907 $4,249,896 $4,092,506 r r- r-, - 128 p Exhibit G-2 CITY OF FRIDLEY, MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND ._ CHANGES IN RETAINED EARNINGS Year Ended December 31,2000 With comparative totals for year ended December 31, 1999 Employee Self Information Totals Benefits Insurance Systems 2000 1999 Operating revenues: Charges for services $ - $587,119 $101,807 $688,926 $292,031 Total operating revenues 0 587,119 101,807 688,926 292,031 Operating expenses: Personal services 8,094 - - 8,094 14,854 Supplies and other charges 2,087 622,041 46,966 671,094 248,189 Depreciation - - 99,731 99,731 100,611 Total operating expenses 10,181 622,041 146,697 778,919 363,654 i Operating income (loss) (10,181) (34,922) (44,890) (89,993) (71,623) -- Nonoperating revenues: Investment income 79,124 141,344 55,922 276,390 123,683 Net income 68,943 106,422 11,032 186,397 52,060 Credit arising from transfer of depreciation on contributed capital - - 3,027 3,027 13,980 Retained earnings-January 1 211,382 881,796 196,531 1,289,709 1,223,669 Retained earnings- December 31 $280,325 $988,218 $210,590 $1,479,133 $1,289,709 129 Exhibit G-3 CITY OF FRIDLEY, MINNESOTA ., INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS Year Ended December 31,2000 With comparative totals for year ended December 31, 1999 Employee Self Information Totals Benefits Insurance Systems 2000 1999 Cash flows from operating activities: Operating income(loss) ($10,181) ($34,922) ($44,890) ($89,993) ($71,623) Adjustments to reconcile operating income(loss) to net cash flows from operating activities: Depreciation - - 99,731 99,731 100,611 Change in assets and liabilities: (Increase)decrease in accounts receivable - (19,904) - (19,904) (1,698) (Increase)decrease in due from component unit - (518) - (518) (26) Increase(decrease) in accounts payable 534 (27,613) 32,098 5,019 42,467 Increase(decrease) in compensated absences payable (33,008) - - (33,008) (3,184) Increase(decrease) in payroll deductions payable (1,017) - - (1,017) 7,892 Net cash flows from operating activities (43,672) (82,957) 86,939 (39,690) 74,439 Cash flows from capital and related financing activities: Aquisition of fixed assets - - (142,383) (142,383) (143,527) Cash flows from investing activities: Investment income 79,124 141,344 55,922 276,390 123,683 Net increase in cash and cash equivalents 35,452 58,387 478 94,317 54,595 Cash and cash equivalents-January 1 1,121,099 1,937,905 820,388 3,879,392 3,824,797 Cash and cash equivalents-December 31 $1,156,551 $1,996,292 $820,866 $3,973,709 $3,879,392 130 Exhibit G-4 CITY OF FRIDLEY, MINNESOTA EMPLOYEE BENEFITS INTERNAL SERVICE FUND COMPARATIVE BALANCE SHEET ,., December 31,2000 and 1999 Totals .. Assets 2000 1999 Cash and investments $1,156,551 $1,121,099 Accounts receivable - - Total assets $1,156,551 $1,121,099 Liabilities and Fund Equity Current liabilities: Accounts payable $8,720 $8,186 Payroll deductions payable 61,648 62,665 Compensated absences payable 805,858 838,866 Total current liabilities 876,226 909,717 Fund equity: Retained earnings: '—' Reserved for employee benefits 280,325 211,382 Total liabilities and fund equity $1,156,551 $1,121,099 131 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, 2000 and 1999 Totals 2000 1999 Operating revenues: Charges for services $ - $2,707 Operating expenses: General government: -�- Personal services 8,094 14,854 Supplies and other charges 2,087 784 Total operating expenses 10,181 15,638 Operating income(loss) (10,181) (12,931) Nonoperating revenues: r, Investment income 79,124 35,380 Net income 68,943 22,449 Retained earnings-January 1 211,382 188,933 Retained earnings- December 31 $280,325 $211,382 .s, a a 132 Exhibit G-6 CITY OF FRIDLEY, MINNESOTA EMPLOYEE BENEFITS INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF CASH FLOWS Years ended December 31,2000 and 1999 Totals 2000 1999 Cash flows from operating activities: Operating income (loss) ($10,181) ($12,931) Change in assets and liabilities: (Increase) decrease in accounts receivable - - Increase(decrease) in accounts payable 534 (5,806) Increase(decrease) in compensated absences payable (33,008) (3,184) Increase (decrease) in payroll deductions payable (1,017) 7,892 Net cash flows from operating activities (43,672) (14,029) Cash flows from investing activities: Investment income 79,124 35,380 Net increase in cash and cash equivalents 35,452 21,351 Cash and cash equivalents-January 1 1,121,099 1,099,748 Cash and cash equivalents- December 31 $1,156,551 $1,121,099 133 Exhibit G-7 CITY OF FRIDLEY, MINNESOTA SELF INSURANCE INTERNAL SERVICE FUND COMPARATIVE BALANCE SHEET December 31, 2000 and 1999 Totals Assets 2000 1999 Cash and investments $1,996,292 $1,937,905 Accounts receivable 21,602 1,698 Due from component unit 544 26 Total assets $2,018,438 $1,939,629 Liabilities and Fund Equity Current liabilities: Accounts payable $30,220 $57,833 Fund equity: Contributed capital 1,000,000 1,000,000 Retained earnings: Unreserved 988,218 881,796 Total fund equity 1,988,218 1,881,796 r' Total liabilities and fund equity $2,018,438 $1,939,629 a a a a 134 Exhibit G-8 r CITY OF FRIDLEY, MINNESOTA SELF INSURANCE INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF REVENUES, ,., EXPENSES AND CHANGES IN RETAINED EARNINGS Years ended December 31, 2000 and 1999 Totals 2000 1999 Operating revenues $587,119 $188,713 Operating expenses: Supplies and other charges 622,041 189,869 Operating income(loss) (34,922) (1,156) Nonoperating revenues: Investment income 141,344 60,361 Net income 106,422 59,205 Retained earnings-January 1 881,796 822,591 Retained earnings- December 31 $988,218 $881,796 135 Exhibit G-9 CITY OF FRIDLEY, MINNESOTA SELF INSURANCE INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF CASH FLOWS Years ended December 31, 2000 and 1999 .. Totals 2000 1999 Cash flows from operating activities: Operating income (loss) ($34,922) ($1,156) Adjustments to reconcile operating income (loss)to net cash flows from operating activities: Change in assets and liabilities: (Increase) decrease in accounts receivable (19,904) (1,698) :.. (Increase) decrease in due from component unit (518) (26) Increase(decrease) in accounts payable (27,613) 53,555 Net cash flows from operating activities (82,957) 50,675 Cash flows from investing activities: Investment income 141,344 60,361 Net increase in cash and cash equivalents 58,387 111,036 Cash and cash equivalents-January 1 1,937,905 1,826,869 -- Cash and cash equivalents- December 31 $1,996,292 $1,937,905 a.s 136 Exhibit G-10 CITY OF FRIDLEY, MINNESOTA INFORMATION SYSTEMS INTERNAL SERVICE FUND COMPARATIVE BALANCE SHEET December 31,2000 and 1999 Totals Assets 2000 1999 Current assets: Cash and investments $820,866 $820,388 Property and equipment, at cost: Property and equipment 733,948 643,715 Less: accumulated depreciation (479,907) (432,325) Net property and equipment 254,041 211,390 Total assets $1,074,907 $1,031,778 Liabilities and Fund Equity Current liabilities: Accounts payable $2,500 $4,397 Due to other governments 33,995 - Total liabilities 36,495 4,397 Fund equity: Contributed capital 827,822 830,850 Retained earnings: Unreserved, undesignated 210,590 196,531 Total fund equity 1,038,412 1,027,381 Total liabilities and fund equity $1,074,907 $1,031,778 137 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, 2000 and 1999 Totals 2000 1999 Operating revenues: Charges for services $101,807 $100,611 Operating expenses: General government: — Supplies and other charges 46,966 57,536 Depreciation 99,731 100,611 Total operating expenses 146,697 158,147 Operating income(loss) (44,890) (57,536) Nonoperating revenues: Investment income 55,922 27,942 Net income (loss) 11,032 (29,594) — Credit arising from transfer of depreciation on contributed assets 3,027 13,980 Retained earnings-January 1 196,531 212,145 Retained earnings- December 31 $210,590 $196,531 138 Exhibit G-12 CITY OF FRIDLEY, MINNESOTA INFORMATION SYSTEMS INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF CASH FLOWS ti Years ended December 31, 2000 and 1999 Totals 2000 1999 Cash flows from operating activities: Operating income(loss) ($44,890) ($57,536) Adjustments to reconcile operating income (loss)to net cash flows from operating activities: Depreciation 99,731 100,611 Change in assets and liabilities: Increase(decrease) in accounts payable 32,098 (5,282) Net cash flows from operating activities 86,939 37,793 Cash flows from capital and related financing activities: Acquisition of fixed assets (142,383) (143,527) Cash flows from investing activities: Investment income 55,922 27,942 Net increase(decrease) in cash and cash equivalents 478 (77,792) Cash and cash equivalents-January 1 820,388 898,180 Cash and cash equivalents- December 31 $820,866 $820,388 139 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, 2000 With comparative totals for December 31, 1999 Expendable Agency Totals Assets Trust Funds 2000 1999 Cash and investments $32,504 $17,538 $50,042 $41,819 -� Receivables: Accounts - 3,442 3,442 2,926 Taxes: — Unremitted - 60 60 114 Delinquent - 427 427 201 Total assets $32,504 $21,467 $53,971 $45,060 Liabilities and Fund Balance Liabilities: Deposits payable $12,591 $ - $12,591 $12,591 Deferred revenue - 427 427 201 Due to other funds - 224 224 200 Due to other governments - 20,816 20,816 14,394 Total liabilities 12,591 21,467 34,058 27,386 Fund balance: Unreserved: Undesignated 19,913 - 19,913 17,674 Total liabilities and fund balance $32,504 $21,467 $53,971 $45,060 142 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 31,2000 and 1999 Totals 2000 1999 Revenues: Investment income $2,239 $1,106 Expenditures - 8,846 Excess(deficiency) of revenues over(under) expenditures 2,239 (7,740) -- Fund balance-January 1 17,674 25,414 Fund balance- December 31 $19,913 $17,674 143 Exhibit H-3 CITY OF FRIDLEY, MINNESOTA ALL AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Year ended December 31, 2000 - Balance Balance T January 1 Additions Deletions December 31 SIX CITIES WATERSHED AGENCY FUND Assets Cash and investments $11,554 $5,984 $ - $17,538 Taxes receivable: Unremitted 114 - 54 60 Delinquent 201 226 - 427 -- Total assets $11,869 $6,210 $54 $18,025 Liabilities Due to other governments $11,668 $5,930 $ - $17,598 Deferred revenue 201 226 - 427 Total liabilities $11,869 $6,156 $0 $18,025 HOTEUMOTEL TAX AGENCY FUND Assets -, Accounts receivable $2,926 $516 $ - $3,442 Total assets $2,926 $516 $0 $3,442 - Liabilities Due to other funds $200 $24 $ - $224 Due to other governments 2,726 492 - 3,218 Total liabilities $2,926 $516 $0 $3,442 Balance Balance January 1 Additions Deletions December 31 , TOTAL-ALL AGENCY FUNDS Assets Cash and investments $11,554 $5,984 $ - $17,538 Receivables: Accounts 2,926 516 - 3,442 Taxes: Unremitted 114 - 54 60 Delinquent 201 226 - 427 Total assets $14,795 $6,726 $54 $21,467 Liabilities Due to other funds $200 $24 $ - $224 Due to other governments 14,394 6,422 - 20,816 Deferred revenue 201 226 - 427 Total liabilities $14,795 $6,672 $0 $21,467 144 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 I-1 CITY OF FRIDLEY, MINNESOTA — COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS December 31, 2000 and 1999 Totals 2000 1999 General fixed assets: Land $2,735,987 $2,735,987 Buildings 6,934,214 6,941,385 Improvements other than buildings 25,182,749 24,045,403 Machinery and equipment 6,050,970 5,924,882 Total general fixed assets $40,903,920 $39,647,657 Investment in general fixed assets from: ..., General obligation bonds $1,176,647 $1,176,647 Federal and state aid 7,981,344 7,321,729 General fund revenues 12,265,944 12,043,563 —` Special revenue fund revenues 1,828,576 1,791,613 Special assessments 13,131,789 12,631,649 Private gifts 902,728 891,968 Other sources 3,616,892 3,790,488 Total investment in general fixed assets $40,903,920 $39,647,657 146 Exhibit 1-2 -- CITY OF FRIDLEY, MINNESOTA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY Year ended December 31, 2000 General Fixed General Fixed Assets Assets Function and Activity 1/1/00 Additions Deletions 12/31/00 General government: Cable TV $113,355 $29,807 $ - $143,162 Accounting 19,717 - - 19,717 Elections 101,768 63,064 101,768 63,064 Management information systems 2,450 - - 2,450 City clerk/records 141,139 - - 141,139 Planning 35,845 - - 35,845 Municipal center 3,763,958 - 105,279 3,658,679 Total general government 4,178,232 92,871 207,047 4,064,056 Public safety: Public protection 813,542 107,699 36,214 885,027 Fire protection 2,288,763 16,060 11,147 2,293,676 .. Inspectional services 5,078 2,086 - 7,164 Civil defense 93,473 - - 93,473 Total public safety 3,200,856 125,845 47,361 3,279,340 Public works: Engineering 68,494 - 13,357 55,137 Street improvements 22,914,313 1,356,313 117,188 24,153,438 Traffic signal 301,113 - 30,431 270,682 Parks 5,572,617 346,797 190,293 5,729,121 Total public works 28,856,537 1,703,110 351,269 30,208,378 Recreation/naturalist: Recreation 2,108,495 27,441 31,847 2,104,089 Naturalist 1,303,537 2,420 57,900 1,248,057 Total recreation/naturalist 3,412,032 29,861 89,747 3,352,146 .. Total general fixed assets $39,647,657 $1,951,687 $695,424 $40,903,920 147 Exhibit 1-3 CITY OF FRIDLEY, MINNESOTA -, SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 2000 Improvements Machinery Other Than and Function and Activity Total Land Buildings Buildings Equipment General government: Cable TV $143,162 $ - $ - $ - $143,162 Accounting 19,717 - - - 19,717 Management Information Systems 2,450 - - - 2,450 - Elections 63,064 - - - 63,064 City clerk/records 141,139 - - - 141,139 Planning 35,845 - - - 35,845 ,.. Municipal center 3,658,679 17,496 2,838,486 52,961 749,736 Total general government 4,064,056 17,496 2,838,486 52,961 1,155,113 Public safety: Public protection 885,027 - - 154,365 730,662 Fire protection 2,293,676 58,656 644,674 204,238 1,386,108 Inspectional services 7,164 - - - 7,164 Civil defense 93,473 - - 66,734 26,739 Total public safety 3,279,340 58,656 644,674 425,337 2,150,673 Public works: Engineering 55,137 - - - 55,137 Street improvements 24,153,438 454,180 371,467 21,952,877 1,374,914 Traffic signal 270,682 - - 270,682 - Parks _ 5,729,121 1,901,053 676,405 1,967,156 1,184,507 Total public works 30,208,378 2,355,233 1,047,872 24,190,715 2,614,558 Recreation/naturalist: Recreation 2,104,089 - 1,923,198 60,304 120,587 Naturalist 1,248,057 304,602 479,984 453,432 10,039 ^ Total recreation/naturalist 3,352,146 304,602 2,403,182 513,736 130,626 Total fixed assets $40,903,920 $2,735,987 $6,934,214 $25,182,749 $6,050,970 148 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, 2000 and 1999 2000 1999 Amount Available And To Be Provided For The Payment of General Long-Term Debt Amount available in Debt Service Funds $9,334,218 $9,467,255 Amount to be provided by future taxes 5,120,782 5,287,745 Total available and to be provided $14,455,000 $14,755,000 General long-term debt payable: General long-term debt payable: General obligation special assessment improvement bonds $845,000 $1,070,000 General obligation tax increment refunding bonds 13,610,000 13,685,000 Total general long-term debt payable $14,455,000 $14,755,000 150 STATISTICAL SECTION WON i ■ ■ •■ a a 151 Table 1 IMMIL 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 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 ri 2000 2,888,061 4,392,025 225,114 2,661,927 775,312 1,031,174 1,058,772 13,032,385 ')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. r a 153 Table 2 CITY OF FRIDLEY, MINNESOTA GENERAL REVENUES BY SOURCE(1) LAST TEN FISCAL YEARS (UNAUDITED) General Property „t Taxes& Inter- Fiscal Special Licenses governmental Charges For Miscellaneous Year Assessments & Permits Revenue Services Revenue Total 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 1997 4,312,005 792,622 5,410,058 1,313,705 2,176,543 14,004,933 ". 1998 4,520,684 846,145 5,603,676 1,514,548 1,965,247 14,450,300 1999 4,475,051 937,084 5,417,384 1,291,819 1,437,381 13,558,719 2000 4,529,716 1,276,615 7,169,366 1,391,203 2,134,539 16,501,439 I (')Includes 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. r, 154 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 Collectionsl1 2 Collected Taxes Collections Tax Levy Taxes(3) 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 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 2000 4,035,671 3,924,172 97.24% 44,446 3,968,618 0.9834 :1 118,399 (')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 2000 and 1999 was$1,092,816 and $1,055,038, respectively. (2)Excludes collections from properties pledged to tax increment. (3)Delinquent taxes are adjusted by Anoka County due to abatements, court ordered settlements and corrections of prior errors by the County. 155 CITY OF FRIDLEY, MINNESOTA — ESTIMATED MARKET VALUE AND TAXABLE VALUE OF ALL TAXABLE PROPERTY LAST TEN FISCAL YEARS (UNAUDITED) Fiscal year payable 1991 1992 1993 1994 Assessment year 1990(1) 1991(1) 1992(1) 1993(1) Population, fiscal year 28,313 28,369 28,287 28,104 Real property: Estimated market value $1,002,812,900 $1,057,532,000 $1,064,099,200 $1,068,474,200 Taxable value: Homestead 7,009,982 6,763,333 6,980,161 7,008,373 Excess and nonhomestead 20,147,442 20,555,478 19,609,068 19,250,219 Less fiscal disparities contribution (4,853,513) (4,684,322) (5,274,175) (5,000,902) , Less tax increment value (2,840,385) (3,073,122) (2,536,327) (2,581,487) Taxable value 19,463,526 19,561,367 18,778,727 18,676,203 Personal property: Estimated market value 27,606,700 22,917,200 23,184,800 23,308,700 Taxable value 1,115,388 1,087,658 1,088,969 1,071,329 Totals: Estimated market value 1,030,419,600 1,080,449,200 1,087,284,000 1,091,782,900 ..., Taxable value 20,578,914 20,649,025 19,867,696 19,747,532 Per market value ratios: Taxable value .020:1 .019:1 .018:1 .018:1 .1 Per capita valuations: Estimated market value $36,394 $38,086 $38,438 $38,848 Taxable value 727 728 702 703 '"r Real property: Taxable value — Fiscal disparities distribution $4,079,539 $3,753,494 $3,463,663 $3,349,769 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, 1999 upon which the 2000 levy was based was$26,635,808. owl 156 Table 4 1995 1996 1997 1998 1999 2000 1994(1) 1995(1) 1996(1) 1997(1) 1998(1) 1999(1) 28,204 28,267 28,419 28,335 28,623 27,449 $1,090,023,902 $1,120,412,065 $1,152,674,700 $1,274,348,500 $1,274,348,500 $1,316,382,300 a 7,374,709 7,784,740 8,199,059 8,307,553 8,556,633 9,152,661 — 19,253,892 19,554,250 20,139,316 18,039,448 16,302,168 16,814,763 (4,946,278) (4,974,987) (5,147,086) (4,685,134) (4,337,632) (4,312,759) (2,642,692) (2,692,879) (2,760,628) (2,638,263) (2,381,402) (2,475,455) 19,039,631 19,671,124 20,430,661 19,023,604 18,139,767 19,179,210 a 19,952,700 19,576,200 19,576,200 19,164,700 19,315,800 19,160,600 916,940 916,940 916,940 766,322 673,798 668,384 a 1,109,976,602 1,139,988,265 1,172,250,900 1,293,513,200 1,293,664,300 1,335,542,900 19,956,571 20,588,064 21,347,601 19,789,926 18,813,565 19,847,594 .018:1 .018:1 .018:1 .015:1 .015:1 .015:1 $39,355 $40,329 $41,249 $45,651 $45,197 $48,655 708 728 751 698 657 723 a $2,827,323 $3,007,783 $3,222,432 $3,116,450 $2,941,279 $3,355,535 ■ 157 Table 5 CITY OF FRIDLEY, MINNESOTA SIGNIFICANT MINNESOTA TAX POLICIES -- December 31, 2000 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 2000 Class Rates Residential Homestead First$75,000 1.00% Over$75,000 1.65% Commercial/Industrial First$150,000 2.40% Over$150,000 3.40% Rentals Apartments: 4+ units 2.40% Less than 4 units 1.65% Title II, MFHA, Sect. 8 1.00% 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. 159 CITY OF FRIDLEY, MINNESOTA �` PROPERTY TAX RATES(1) DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS ook. (UNAUDITED) School School School School '~ Fiscal District District District District Year City No. 11 No. 13 No. 14 No. 16(2) 1991 15.854% 51.779% 53.249% 49.727% 49.867% 1992 15.474% 56.525% 61.847% 58.025% 49.798% +t 1993 15.390% 63.717% 68.142% 61.406% 58.922% 1994 16.005% 57.161% 69.161% 60.840% 53.355% 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% 2000 17.070% 51.792% 66.685% 61.655% 51.440% 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)Stonybrook Creek Subwatershed is included with School District No. 11 and 14. 160 Table 6 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) ■ 31.400% 4.767% 103.420% 105.226% 101.704% 101.844% - 32.990% 5.119% 109.711% 115.388% 111.566% 103.339% 32.779% 5.668% 116.910% 122.707% 115.221% 114.723% 32.680% 5.452% 110.879% 123.277% 114.956% 108.899% a 32.765% 6.022% 115.811% 132.593% 118.159% 113.801% 31.036% 6.122% 117.662% 113.880% 125.488% 121.656% a 30.091% 6.044% 108.218% 137.656% 119.067% 114.551% 30.618% 6.603% 107.400% 124.314% 125.225% 114.679% a 32.265% 6.603% 114.104% 128.158% 127.049% 120.765% 30.861% 8.224% 108.610% 123.385% 118.575% 108.882% a r: ... 161 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 _ 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 0. 1997 540,313 507,588 93.94% 47,068 554,656 102.65% 74,711 1998 524,560 483,721 92.21% 44,464 528,185 100.69% 70,596 1999 482,364 457,546 94.85% 36,695 494,241 102.46% 61,103 2000 489,933 474,153 96.78% 31,938 506,091 103.30% 33,050 r i' 163 CITY OF FRIDLEY, MINNESOTA .� HISTORY OF CERTIFIED TAX LEVIES AND TAX RATES LAST TEN FISCAL YEARS (UNAUDITED) .a 1991 1992 1993 Certified tax levies: General Fund $4,660,276 $4,660,276 $4,535,276 General Debt Service Funds - Capital Improvement Fund 87,689 87,689 87,689 Subtotal 4,747,965 4,747,965 4,622,965 Enterprise Fund - - - Agency Fund 3,500 3,500 3,500 Total $4,751,465 $4,751,465 $4,626,465 Oft Tax Capacity Rate: General Fund 14.705% 15.548% 15.153% General Debt Service Funds 0.000% 0.000% 0.000% Capital Improvement Fund 0.290% 0.284% 0.300% Enterprise Fund 0.000% 0.000% 0.000% Subtotal 14.995% 15.832% 15.453% Agency Fund 0.015% 0.022% 0.021% Total 15.010% 15.854% 15.474% dot Notes: ("Beginning in 1994, the State law required the City to certify its tax levy after subtracting Homestead and „y Agricultural Aid Credit(HACA). Total HACA for 2000 and 1999 was$1,092,816 and$1,055,038, respectively. 164 a Table 8 1994(1) 1995(1) 1996(1) 1997(1) 1998(1) 1999(1) 2000(1) $3,603,266 $3,592,295 $3,821,853 $3,806,950 $3,921,159 $3,947,133 $4,117,233 72,689 72,689 72,689 72,689 72,689 72,689 72,667 3,675,955 3,664,984 3,894,542 3,879,639 3,993,848 4,019,822 4,189,900 - - - 8,900 8,900 8,900 8,900 2,710 2,702 3,087 3,073 7,822 6,197 6,200 $3,678,665 $3,667,686 $3,897,629 $3,891,612 $4,010,570 $4,034,919 $4,205,000 _ 15.076% 15.778% 16.258% 15.399% 16.807% 17.995% 16.761% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.314% 0.320% 0.307% 0.294% 0.312% 0.331% 0.309% 0.000% 0.000% 0.000% 0.625% 0.516% 0.687% 0.613% 15.390% 16.098% 16.565% 16.318% 17.635% 19.013% 17.683% 0.022% 0.022% 0.024% 0.023% 0.067% 0.049% 0.045% 15.412% 16.120% 16.589% 16.341% 17.702% 19.062% 17.728% a r 165 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 1991 28,313 $20,578,914 $17,715,000 $ - $17,715,000 $ - $ - $ - 1992 28,369 20,649,025 22,470,000 - 22,470,000 - - - 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 - - - — 2000 27,449 19,847,594 18,335,000 - 18,335,000 - - - a AO Z 167 Table 10 Page 1 of 2 CITY OF FRIDLEY, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN December 31, 2000 .� (UNAUDITED) Market Value $1,316,382,300 (A)Debt Limit 2% of Market Value $26,327,646 Amount of Debt Applicable to Debt Limit: Total Debt $18,335,000 (B)Deductions: Tax Increment Redevelopment Bonds $13,850,000 Special Assessment Bonds 605,000 Revenue Bonds 3,880,000 18,335,000 — Total Amount of Debt Applicable to Debt Limit Legal Debt Margin $26,327,646 Notes: (A)M.S.A. Section 475.53 (see following page) (B)M.S.A. Section 475.51 (see following page) Ire Asak arr R 168 Table 10 Page 2 of 2 CITY OF FRIDLEY MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED) December 31, 2000 (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 extinguishment of obligations other than those deductible under this subdivision. (8) Obligations to repay loans made under section 216C.37. (9) Obligations to repay loans made from money received from litigation or settlement of alleged violations of federal petroleum pricing regulations. (10) All other obligations which under the provisions of law authorizing their issuance are not to be included in computing the net debt of the municipality. 169 Table 11 CITY OF FRIDLEY, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT AND COMPARATIVE DEBT RATIOS December 31, 2000 (UNAUDITED) Net Percent of Net General Debt Debt General Bonded Gross Service Net Applicable Bonded Debt Governmental Unit Debt Funds Debt to City Debt Per Capita .ter Direct and overlapping debt: Direct debt: City of Fridley $18,335,000 $9,408,985 $8,926,015 100.00% $8,926,015 $325 Overlapping debt: School Districts: No. 11 123,664,157 6,861,267 116,802,890 1.60% 1,868,846 68 No. 14 17,700,000 212,000 17,488,000 100.00% 17,488,000 637 No. 16 29,260,000 2,800,501 26,459,499 36.80% 9,737,096 354 •a Metro Council 685,163,296 43,818,000 641,345,296 1.19% 7,632,009 278 Anoka County 78,265,000 8,168,907 70,096,093 18.04% 12,645,335 460 Vocational/Technical District No. 916 20,060,000 788,807 19,271,193 2.21% 425,893 15 Overlapping debt 954,112,453 62,649,482 891,462,971 49,797,179 1,812 Total direct and overlapping debt $972,447,453 $72,058,467 $900,388,986 $58,723,194 $2,137 .. 170 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) Ratio to Total Total Debt Service Fiscal Debt General to General Year Principal Interest Service Expenditures(" Expenditure 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 2000 300,000 753,062 1,053,062 13,032,385 .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. a 171 Table 13 CITY OF FRIDLEY, MINNESOTA REVENUE BOND COVERAGE LAST TEN FISCAL YEARS (UNAUDITED) " 0. Net Operating Revenue Direct Direct Available Fiscal Operating Operating For Debt Debt Service Requirements Year Revenue(') Expenses(2) Service Principal Interest Total Coverage 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 .,A, 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 2000 5,150,374 4,965,373 185,001 1,445,000 199,893 1,644,893 0.11 ~ Notes: (')Total operating revenue. (2)Total operating expenses including depreciation. :s. s. . 172 Table 14 CITY OF FRIDLEY, MINNESOTA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS (UNAUDITED) Annual Per Average Fiscal Capita Median School Unemployment Year Population') Income) Agee) Enrollment(2) Rate(4) 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% 2000 27,449 (6) 25,357 37.2 3,543 2.8% Notes: ('Estimated by Metropolitan Council. (2)Estimated -excludes Grace Parochial High School as it is not supported by property tax dollars. (3)1991 - 1994 amounts for Anoka County. (4)Minnesota Department of Economic Security-Twin Cities Labor Market (5)National Planning Data Corporation (6)2000 Population Report- Bureau of the Census 173 Table 15 CITY OF FRIDLEY, MINNESOTA CONSTRUCTION AND PROPERTY VALUE LAST TEN FISCAL YEARS (UNAUDITED) f Commercial Construction Residential Construction Number Number Estimated Market Value Fiscal of of Taxable Non- Year Units Value Units Value Property Taxable ) Total 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 2000 96 93,625,644 836 8,020,233 1,335,542,900 208,409,300 1,543,952,200 Note: wNon-taxable property is reevaluated by the city assessors every six years 174 Table 16 CITY OF FRIDLEY, MINNESOTA PRINCIPAL TAXPAYERS December 31,2000 (UNAUDITED) Fiscal Year 2000 Percent 1999 of Total Taxable Taxable Rank Taxpayer Type of Business Valuation Valuation 1 Target Corporation Target discount store,warehouse and office $34,734,600 3.05% 2 Medtronic, Inc. Electro-medical devices 34,058,000 2.99% 3 Shamrock Investments Murphy Warehouses 27,058,000 2.37% 4 Springbrook Apartments Springbrook Apartments 18,405,000 1.61% a- 5 Maurice Fillister(Georgetown) Georgetown Apartments 14,501,600 1.27% 6 Cummins Power(Onan) Portable electric generators 14,264,100 1.25% 7 Burlington Northern Railroad Operating property 13,059,000 1.15% 8 Retail Trust IV(Wal-Mart/Sam's) Wal-Mart/Sam's Club discount stores 11,239,600 0.99% 9 Northwest Racquet&Swim Club Health and Tennis Club 11,069,300 0.97% 10 Riverpointe Apartments Riverpointe Apartments 10,504,200 0.92% Total $188,893,400 16.57% 175 Table 17 CITY OF FRIDLEY, MINNESOTA �. INSURANCE COVERAGE December 31,2000 (UNAUDITED) Municipal Property &Crime: Property $28,120,000 Mobile Property (also refered to as Inland Marine). .. Scheduled Over$25,000 1,371,694 Unsched$25,000 & Less 494,168 Crime (inside/outside &forgery). 100,000 �. Bonds 350,000 Municipal Liability: Each occurance limit $1,000,000 Automobile Liability: Liability $1,000,000 Personal Injury Protection Mn Statutory Coverage Uninsured/Underinsured Motorist 1,000,000 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: Each Occurrence Limit 1,000,000 Personal&Adverting Injury Limit 1,000,000 4' General Aggregate Limit 2,000,000 Medical Payments limit 10,000 Employee Dishonesty 25,000 " Money &Securities Inside the Premises 10,000 Money &Securities Outside the Premises 5,000 Boiler& Machinery: Equipment Breakdown Limit 3,000,000 Accident Plan for Volunteers: Accidental 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: Bodily Injury-Each Occurrence 1,000,000 176 Table 18 — Page 1 of 3 CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION December 31, 2000 (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 November 4, 2000 — Registered voters 18,686 Number of votes cast 13,873 Percent(%)of registered voters voting 74.0% 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 2000 - Federal Census 27,449 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 2000 138 177 Table 18 Page 2 of 3 •- CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED) December 31, 2000 (UNAUDITED) Fire protection: Number of stations 3 Volunteer firefighters 24 Full-time firefighters 6 Fire rating Class 3 Police protection: Number of stations 1 Tr Number of sworn officers 39 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 127.20 Trunk highways 10.79 County roads 14.56 Sidewalks and bikeways 14.48 Miles of sewer: Storm 49.34 Sanitary 102.96 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 998 Municipal sewer system: Disposal--through Metropolitan Council Environmental Service ,o, Number of connections December 31, 1999 8,205 Average daily flow(includes infiltration/inflow) 5.25 million gallons 178 Table 18 Page 3 of 3 CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED) December 31, 2000 (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 A. 179 Table 19 CITY OF FRIDLEY, MINNESOTA GENERAL INFORMATION December 31, 2000 (UNAUDITED) Location -Transportation ,+ The City of Fridley, with a total land area of eleven square miles and an estimated population of 27,449, 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 -R 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 160 certified personnel in the education of about 2,597 students. Grace Parochial High School has an enrollment of approximately 1,077. 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 950 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 headquarters 2,170 United Defense Systems Pumps and naval ordinance 1,473 Cummins (Onan) Portable generators, electronic equipment 1,362 Minco Products Electronic devices 677 Kurt Manufacturing Machine parts 650 Burlington Northern Railroad Railroad company 650 Parsons Electric Electric contractor 500 Unity Hospital Medical services 474 Target Stores, Warehouse Discount department store 384 McGlynn's Bakery 377 .. 1- 180