1990 CAFR COMPRF,HENSIVE ANNUAL
FINANCIAL REPORT
CITY OF FRIDLEY
MINNESOTA
FOR THE YEAR ENDED DECEMBER 31, 1990
CITY OF FRIDLEY, MINNESOTA
Comprehensive Annual Financial Report
December 31, 1990
Prepared by:
Department of Finance
Richard D. Pribyl
Director of Finance
David J. DuBord
Assistant Finance Director
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1990
TABLE OF CONTENTS
EXHIBIT PAGE
INTRODUCTORY SECTION
List of Elected and Appointed Officials 1
Organizational Structure 2
City Manager's Letter of Transmittal 3
Chief Executive Officer's Letter of Transmittal 5
Certificate of Achievement for Excellence in
Financial Reporting 15
FINANCIAL SECTION
Auditors' Opinion 17
General Purpose Financial Statements
Combined Financial Statements - Overview
Combined Balance Sheet - All Fund Types and
Account Groups A-1 20
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - All Governmental
Fund Types and Expendable Trust Funds A-2 24
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual -
General and Special Revenue Fund Types A-3 26
Combined Statement of Revenues, Expenses and Changes
in Retained Earnings - All Proprietary Fund Types A-4 28
Combined Statement of Cash Flows
All Proprietary Fund Types A-5 29
Notes to Financial Statements 30
Financial Statements of Individual Funds:
General Fund:
Comparative Balance Sheet B-1 63
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual B-2 64
Schedule of Revenues and Other Financing Sources -
Budget and Actual B-3 65
Schedule of Expenditures and Other Financing Uses -
Budget and Actual B-4 67
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1990
TABLE OF CONTENTS (CONTINUED)
EXHIBIT PAGE
Special Revenue Funds:
Combining Balance Sheet C-1 74
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances C-2 76
Cable TV Fund:
Comparative Balance Sheet C-3 78
Statement of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual C-4 79
Grant Management Fund:
Comparative Balance Sheet C-5 80
Statement of Revenues, Expenditures and Changes —
in Fund Balance - Budget and Actual C-6 81
HRA Reimbursement Fund:
Comparative Balance Sheet C-7 82
Statement of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual C-8 83
Debt Service Funds:
Combining Balance Sheet D-1 85
—
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances D-2 86
Capital Projects Funds:
Combining Balance Sheet E-1 88
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances E-2 90
Enterprise Funds: '^
Combining Balance Sheet F-1 95
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings F-2 96
Combining Statement of Cash Flows F-3 97
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1990
TABLE OF CONTENTS (CONTINUED)
EXHIBIT PAGE
Liquor Fund:
Comparative Balance Sheet F-4 98
Comparative Statement of Revenues, Expenses and
Changes in Retained Earnings F-5 99
Comparative Statement of Cash Flows F-6 100
Public Utilities Fund:
Comparative Balance Sheet F-7 101
Comparative Statement of Revenues, Expenses and
_ Changes in Retained Earnings F-8 102
Comparative Statement of Cash Flows F-9 103
Internal Service Funds:
Combining Balance Sheet G-1 105
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings G-2 106
Combining Statement of Cash Flows G-3 107
Employee Benefits Fund:
Comparative Balance Sheet G-4 108
_ Comparative Statement of Revenues, Expenses and
Changes in Retained Earnings G-5 109
Comparative Statement of Cash Flows G-6 110
Self Insurance Fund:
Comparative Balance Sheet G-7 111
Comparative Statement of Revenues, Expenses and
Changes in Retained Earnings G-8 112
Comparative Statement of Cash Flows G-9 113
Trust and Agency Funds:
Combining Balance Sheet H-1 115
Trust Fund Comparative Statement of Revenues, Expenditures
and Changes in Fund Balance H-2 116
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1990 —
TABLE OF CONTENTS (CONTINUED)
EXHIBIT PAGE
Trust and Agency Funds: (Continued)
Agency Funds
Combining Statement of Changes in Assets and Liabilities H-3 117
Statement of Changes in Assets and Liabilities for
Individual Agency Funds
Six Cities Watershed H-4 118
Hotel/Motel H-4 118
Deferred Compensation H-5 119
General Fixed Assets:
Comparative Statement of General Fixed Assets I-1 121
Schedule of General Fixed Assets - By Function and Activity 1-2 122
Schedule of Changes in General Fixed Assets - By Function 1-3 123
and Activity
General Long-Term Debt:
Comparative Statement of General Long-Term Debt J-1 125
SUPPLEMENTAL INFORMATION
Independent Auditor's Report on Compliance with Requirements
Applicable to Nonmajor Federal Financial Assistance Program
Transactions 127
Schedule of Findings and Questioned Costs 129
Independent Auditor's Report on the Internal Control Structure
in Accordance with Government Auditing Standards 131 —
Independent Auditor's Report on Internal Controls (Accounting and
Administrative) Based on a Study and Evaluation Made as a Part —
of an Audit of the General Purpose Financial Statements and the
Additional Tests Required by the Single Audit Act 135
Independent Auditor's Report on Supplementary Information -
Schedule of Federal Financial Assistance 141
Compliance Report Based on an Audit of General Purpose Financial —
Statements Performed in Accordance with Government Auditing Standards 143
Schedule of Federal Financial Assistance K-1 145 —
Schedule of Assessed Valuation and Long-Term Debt
for the Tax Increment Financing District K-2 146
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1990
TABLE OF CONTENTS (CONTINUED)
SUPPLEMENTAL INFORMATION (CONTINUED) EXHIBIT PAGE
Schedule of Sources and Uses of Public Funds
for the Tax Increment Financing District K-3 147
... STATISTICAL SECTION TABLE
General Governmental Expenditures by Function - Last Ten Fiscal Years 1 149
General Revenues by Source - Last Ten Fiscal Years 2 150
Certified Property Tax Levies and Collections - Last Ten Fiscal Years 3 151
Assessed and Estimated Market Value of All Taxable Property -
Last Ten Fiscal Years 4 152
Significant Minnesota Tax Policies 154
Property Tax Rates Per $1,000 of Assessed Value and Calculated
Tax Levies - All Overlapping Governments - Last Ten Fiscal Years 5 156
Special Assessment Levies and Collections - Last Ten Fiscal Years 6 158
History of Certified Tax Levies and Actual Mill Rates -
Last Ten Fiscal Years 7 160
Ratio of Net General Bonded Debt to Assessed Values and
Net Bonded Debt Per Capita - Last Ten Fiscal Years 8 162
Computation of Legal Debt Margin 9 164
Computation of Direct and Overlapping Bonded Debt and
Comparative Debt Ratios 10 166
Ratio of Annual Debt Service Expenditures for General Bonded Debt
to Total General Government Expenditures - Last Ten Fiscal Years 11 167
Revenue Bond Coverage - Last Ten Fiscal Years 12 168
Demographic Statistics - Last Ten Fiscal Years 13 169
Construction, Bank Deposits and Property Value - Last Ten Fiscal Years 14 170
Principal Taxpayers 15 171
Insurance Coverage 172
Miscellaneous Statistical Information 173
General Information 176
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INTRODUCTORY SECTION
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CITY OF FRIDLEY, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
DECEMBER 31, 1990
ELECTED OFFICIALS
Term of Office
— Expires December
Mayor William J. Nee 1992
Councilmember At Large Nancy J. Jorgenson 1992
Councilmember, Ward I Steven E. Billings 1994
Councilmember,Ward II Dennis L Schneider 1991
Councilmember,Ward Ill Edward J. Fitzpatrick 1994
Effective January 1990
Mayor William J. Nee 1992
Councilmember At Large Nancy J. Jorgenson 1992
Councilmember, Ward I Steven E. Billings. 1994
Councilmember, Ward II Dennis L Schneider 1991
Councilmember,Ward Ill Edward J. Fitzpatrick 1994
APPOINTED OFFICIALS
City Manager - William W. Burns
City Attorney - Virgil C. Herrick
Prosecuting Attorney - Carl J. Newquist
Treasurer - Richard D. Pribyl
City Clerk - Shirley A. Haapala
Department Heads:
Director of Finance - Richard D. Pribyl
Director of Public Safety and
Civil Defense Director - James P. Hill
Fire Chief - Charles J. McKusick
Director of Public Works - John G. Flora
Director of Recreation and Natural Resource - Jack G. Kirk
Director of Community Development - Barbara J. Dacy
Division Heads:
Public Works Superintendent - Ralph S. Volkman
Chief Building Official - Darrel G. Clark
Liquor Stores Manager - Kathleen L Schmitz
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CITY ADMINISTRATIVE ORGANIZATIONAL STRUCTURE 1990
Total Authorized Positions(126)
CITY MANAGER(5)
City Manager
Asst to City Manager
Personnel Technician
Secretary to the City Manager
Personnel Clerk
FINANCE(21) POLICE(44) FIRE(6) PUBLIC WORKS(38) RECREATION&NATURALIST(5) COMMUNITY DEVELOPMENT(7)
Finance Director-Treasurer Assistant City Manager- Fire Chief Director of Public Works Director of Recreation&Nat Director of Community Devel-HRA
MIS Technician Public Safety Director- Dep Fire Chief Oper Analyst Secretary
Staff Accountant Civil Defense Director (3)Firefighter Secretary CODE ENFORCEMENT(3)
Accountant Secretary Secretary NATURALIST(2) Chief Bldg Official
Acctg-Data Proc Clerk Dep Pub Safety Dir ENGINEERING(3) Nat Res Coordinator Mech/Bldg Inspector
Receptionist-Lic Clerk Lieutenant Asst Public Works Dir Interpretive Specialist Secretary
(4)Sergeant Engineering Tech
ACCOUNTING(6) (3)Corporal Engineering Aide-Admin RECREATION(1) PLANNING(3)
Asst Finance Director (23)Patrol Officer Program Supervisor Planning Coordinator
Accounting Specialist Pub Sfty Projects Coor PW MAINTENANCE(32) Code Enf Officer-Planning A
Utility Billing CIk (2)Crime Prey Spec Superintendant Secretary
General Accountant Office Supervisor Secretary
Acctg-Data Proc CIk (2)Senior Office Asst Street Foreman
Acctg-Data Proc Clk (4)Office Asst (6)PSW-D
(3)Mechanic,Level B
ASSESSING(3) (2)PSW-C
Assessor (1)PSW-B
Appraiser Water Foreman
Assessment Clk (1)PSW-D
(1)PSW-C
CITY CLERK-RECORDS(2) (1)PSW-B
CITY CLERK (1)PSW-A
Records Retention Spec Sewer Foreman
(1)PSW-B
LIQUOR(4) (3)PSW-A
LQ Store Manager Park Foreman
Asst LQ Store Manager (6)PSW-D
LO Store Clerk
LQ Store Clerk
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CITYOF
FRIDLEY
FRIDLEY MUNICIPAL CENTER•6431 UNIVERSITY AVE. N.E. FRIDLEY, MN 55432• (612)571-3450•FAX(612)571-1287
May 17, 1991
The Honorable Mayor and
Members of the City Council
City of Fridley
Council Members:
In accordance with the Charter, we hereby transmit the Comprehensive Annual Financial
Report of the City of Fridley for the year ending December 31, 1990.
The Report includes an excellent and comprehensive letter from Richard D.Pribyl, Director
of Finance and David J. DuBord, Assistant Finance Director, which provides a brief
description of some of the activities the City is currently involved in. Also highlighted in
..., the letter are some of the more important financial management practices employed by the
City administrative staff. I would like to express my appreciation and commendation to
them and the Finance Division staff for the manner in which the accounts are kept and the
Report presented.
I would also like to express appreciation for the commendable administrative financial
management of the several departments and divisions by the respective department and
division heads as revealed by this Report.
Very truly yours,
William W. Burns
City Manager
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-- UTYOF
FRIDLEY
FRIDLEY MUNICIPAL CENTER•6431 UNIVERSITY AVE. N.E. FRIDLEY, MN 55432•(612)571-3450•FAX(612)571-1287
May 17, 1991
Mr. William W. Burns, City Manager
Mayor William J. Nee and Council Members
._ Fridley, Minnesota 55432
Dear Mr. Burns, Mayor Nee and Council Members:
—' The Comprehensive Annual Financial Report of the City of Fridley, Minnesota,for the fiscal
year ending December 31, 1990, 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 1989. It is our belief that the
.... accompanying fiscal year 1990 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 four 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 supplemental information section which includes information
regarding federal programs and tax increment financing activity.
WEB
Section IV is the statistical section which includes the previous year's financial and
non-financial data.
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CITY OF FRIDLEY, MINNESOTA
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 the
data as presented is accurate in all material aspects, that it is presented in a manner
designed to fairly set forth the financial position and results of operations of the City as '-
measured by the financial activity of its various funds, and that all disclosures necessary
to enable the reader to gain the maximum understanding of the City's financial activity
have been included.
The 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 City exercises or has the
ability to exercise, oversight responsibility of the Fridley Housing and Redevelopment
Authority,these activities are included in the reporting entity. However,the Fridley School
Districts,the Fridley Police Relief Association and the Fridley Volunteer Firefighters Relief
Association have not met the established criteria for inclusion in the reporting entity, and
accordingly are excluded from this report. ._
GENERAL INFORMATION
BACKGROUND AND LOCATION
The City of Fridley is an older metropolitan community with a 1990 population of 28,335.
The City is located just north of downtown Minneapolis and covers 11 square miles of
area. The City was incorporated July 1, 1949 and is currently committed to
redevelopment. With the help of the Housing and Redevelopment Authority,the City has
been successful in attracting redevelopment projects in the past and for the future.
MAJOR INITIATIVES
During the year, the City of Fridley directed a number of projects including construction -_
of a new 1.5 million gallon water tower, construction of three monitoring wells which
indicated no contamination, major repairs to our 1.5 million gallon and 3 million gallon
reservoirs, construction of new park shelters, upgrading of playground equipment,
resurfacing of tennis courts and repair/sealcoating of 6 miles of City streets.
Internally, the City completed a number of projects. Phase II of the management
information study which involved design of hardware and software specifications was —
completed and requests for proposals were solicited. A number of proposals were received
and analyzed. Selection of the vendor and acquisition of the hardware and software was
initially anticipated to be completed in 1990 and is now planned for summer of 1991.
Phase II of the records retention program was ongoing during 1990. This phase involves
the establishment of central files including consolidation and elimination of duplicate files,
establishment of a city-wide classification/coding system and microfilming and microfiching
of city documents. Several departments were converted in 1990 with the remainder
scheduled for conversion in 1991.
Other notable initiatives during the year included: purchase and implementation of new
optical scan voting equipment used in the September Primary and November General
Elections; completion of a water rate study resulting in implementation of new water rates;
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CITY OF FRIDLEY, MINNESOTA
GENERAL INFORMATION (CONTINUED)
MAJOR INITIATIVES (CONTINUED)
issuance of refunding bonds in early 1990 and preparation for an early 1991 issue of
improvement and water revenue bonds; completion by the City Manager's office of a
' comprehensive study of the liquor operations; and increasing the curbside recycling
programs tonnage by over 50% from 594 tons in 1989 to 895 tons in 1990.
We were also honored to receive the Distinguished Budget Presentation Award for our
1990 Budget for the second year in a row.
'— PLANS FOR THE FUTURE
The future for the City of Fridley, like all units of government is filled with change and
restructuring. The federal deficit has and will continue to have a trickle down effect to
lower levels. Cities are faced with the problems of financing their own traditional levels of
service while simultaneously coping with cuts in intergovernmental revenues and the
implementation of both federal and state mandates. In addition to these issues, we are
being challenged to find alternatives to deal with costly issues relating to solid waste
management. Strategic planning sessions to deal with various magnitudes of possible
cutbacks in state aids to cities are scheduled for 1991 and will include issues such as new
— revenue sources, prioritization of program cutbacks and delay of capital outlay
expenditures.
— Internally, we continue to review our operation and to make changes to improve
effectiveness and efficiency. As discussed above, proposals for a new management
information system were received in the latter part of 1990 and selection of a vendor is
anticipated in mid-1991. A staged implementation for the various applications is planned
for the latter part of 1991 to include training, data conversion, running parallel systems,
identifying and correcting bugs and eventual full conversion of all accounting applications.
Also planned for 1991 is creation of a computer link with the Anoka County Assessor's
office. In addition, acquisiton of a computer-controlled fuel and parts inventory system is
planned for the municipal garage.This inventory program will monitor fuel usage and aid
in reducing parts inventory to minimum levels.
Implementation of recommendations of the liquor operations study will continue to be
implemented in 1991 in an effort to improve profitability. Selection of a new liquor
inventory control system to provide better information for inventory control is expected by
mid-year with implementation by year-end. Other liquor study recommendations to be
implemented in 1991 include establishment of specific financial goals and objectives with
periodic evaluation, improvement in the internal and external appearance of the stores, and
undertaking various marketing and promotional plans.
With regards to solid waste issues, a separate fund will be created in 1991 to account for
_ the City's programs and projects associated with solid waste abatement including the
City's curbside recycling pickup program and the operation of the yard waste transfer site.
Plans are to obtain and distribute recycling containers to residents to improve recycling
volume and to sponsor a tire recycling day semiannually. Funding will come from grants
from Anoka County and the Metropolitan Council, a new recycling charge to be billed
through the utility billing system effective in January, 1991 and a gate fee at the yard
waste disposal site.
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CITY OF FRIDLEY, MINNESOTA
GENERAL INFORMATION (CONTINUED)
PLANS FOR THE FUTURE (CONTINUED)
Significant projects for 1991 budgeted in the 5 year capital improvement plan include:five
major redevelopment projects in the streets division including additions of water, sewer and
storm water improvements; construction of a new well adjacent to the Locke Park Filter
Plant to support the necessary water demand during peak summer usage periods;
extension of monitoring wells in the Commons Park field in relation to contamination of the
Jordan aquifer; and annual well, reservoir and pump house maintenance programs.
FINANCIAL INFORMATION
INTERNAL CONTROLS
In developing and improving the City's accounting system, consideration is given to the
adequacy of internal accounting controls. Internal accounting controls are designed to
provide reasonable, but not absolute, assurance regarding the safeguarding of assets
against loss from unauthorized use or disposition and the reliability of financial records for
preparing financial statements and maintaining accountability for assets. The concept of
reasonable assurance recognizes that the cost of a control should not exceed the benefits
likely to be derived and the evaluation of costs and benefits requires estimates and
judgments by management.
All internal control evaluations occur within the above framework. We believe that the
City's internal accounting controls adequately safeguard assets and provide reasonable
assurance of the proper recording of financial transactions.
BUDGETARY CONTROLS
A complete budgetary system of accounts is maintained for the General and Special
Revenue Funds. Budgetary control is maintained in compliance with the City Charter
Requirements. The Charter provides that it is the duty of the City Manager to strictly
enforce the provisions of the budget. The management policy of the City is such that the
existence of a particular item or appropriation in the approved budget does not mean that
it will or must be automatically expended. It is the policy of the City to control budgets
at the expenditure category level. Budget adjustments between City divisions are made
upon the approval of a resolution by the City Council. The City Charter provides that the
City Council shall not have power to increase the total amount of the budget, whether by
insertion of new items or otherwise, beyond the estimated revenue unless the actual
revenue exceeds such revenue estimates, and in that event not beyond such actual
revenue. There is a constant review process. Expenditures are not approved until it has
been determined that 1) the expenditure is necessary, 2) adequate funds have been
appropriated, and 3) funds are available.
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CITY OF FRIDLEY, MINNESOTA
FINANCIAL INFORMATION (CONTINUED)
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 ranged from
7.0% to 11.7% during the year.
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, 1990
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. Of the $15,765,000 outstanding,
$3,230,000 represents special assessment debt with government commitment,$9,485,000
represents general obligation tax increment refunding bonds and the remaining $3,050,000
relates to tax increment issues supported by revenue from the established tax increment
areas. During 1990, $13,620,000 of bonds were refunded through call, $9,060,000 of bonds
were defeased and $9,485,000 of bonds were issued.
The City of Fridley has, since 1982, maintained a credit rating of a Aa1 on its long-term
bonds.
FISCAL DISPARITIES
The commonly referred to'Fiscal Disparity Law'was adopted by the Legislature in 1971.
The area of 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 areawide'pool', and
shared according to specific criteria
TAX INCREMENT DISTRICTS
The City Council took action on May 7, 1979 to form the first of nine 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.
During the past few years there has been a lot of activity in various areas throughout the
City. In the North Area the Springbrook apartments at Northtown were completed. In the
Moore Lake area, three projects have been completed and the Northwest Racquet and
Swim Club opened in the summer of 1990. There is also a new shopping center and an
office complex which are in the process of leasing space.
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CITY OF FRIDLEY, MINNESOTA
FINANCIAL INFORMATION (CONTINUED) „_
GENERAL GOVERNMENT FUNCTIONS
The following schedule presents a summary of the General Fund,Special Revenue Funds,
Debt Service Funds and the HRA Capital Projects Fund revenues for the fiscal year ended
December 31, 1990. Percent Increase/ —
Revenues Amount of Total (Decrease)
Taxes and special assessments $6,694,503 51.27% $501,940
Licenses and permits 408,966 3.13% (68,226)
Intergovernmental 3,377,958 25.86% (1,574,289)
Charges for services 630,015 4.82% 471,352
Fines and forfeits 259,764 1.99% 18,529
Interest on investments 1,520,170 11.64% (224,412)
Miscellaneous 169,064 1.29% (1,823)
Total $13,060,440 100.00% ($876,929)
The most significant changes in revenues from the prior year were in the taxes/special
assessments, intergovernmental revenue, charges for services and interest income
categories. The increase in the taxes and special assessments category and
approximately the same amount of decline in the intergovernmental category resulted from
a change in the method of distributing state aids which were substantially offset by —
redistribution of property taxes.The most significant decline in intergovernmental revenue
was due to 1989 receipt of state aid construction monies attributable to the Lake Pointe
project.Charges for services increased substantially due to the implementation in 1990 of
administrative transfers from other funds to the general fund as opposed to direct charging
of personal services to other funds in previous years.Interest on investments declined due
to major improvements the City undertook during the year and due to the $1,000,000
transfer from the General Fund to the Self Insurance Fund.
The following schedule presents a summary of the General Fund,Special Revenue Funds,
Debt Service Funds and the HRA Capital Projects Fund expenditures for fiscal year ended
December 31, 1990.
Percent -,
Expenditures Amount of Total Increase
Current:
General government $2,452,968 10.01% $531,409
Public safety 3,008,700 12.27% (21,807)
Civic center 173,260 0.70% (99,835)
Public works 2,451,372 10.00% 229,169
Recreation and naturalist 641,432 2.62% 13,035
Debt service 15,789,169 64.40% 12,607,750 '^
Total $24,516,901 100.00% $13,259,721
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CITY OF FRIDLEY, MINNESOTA
NMI
FINANCIAL INFORMATION (CONTINUED)
GENERAL GOVERNMENT FUNCTIONS (CONTINUED)
The most significant increase in expenditures was in debt service. This is due to the
refunding through call of the Variable Rate Bonds of 1985 in the principal amount of
$13,620,000. The appearance of large increases in the general government and public
works area is largely due to the new practice discussed above of no longer charging
personal service expenditures directly to other funds but leaving all personnel costs in the
general fund and billing administrative charges to the other funds.
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 years expenditures,
contingencies and for replacement of fixed assets.
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 two municipal liquor stores. Except for ownership,enterprise
funds bear a close resemblance to privately owned utility or service enterprises.
Liquor Fund
The Liquor Fund was established to account for the operation and financing of the City-
owned municipal liquor stores. The City operates two liquor stores, one at 6289 Highway
65, and the other at 214 Mississippi Street. The City owns the store at the Highway 65
location and currently has a lease with one year options at 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 which use wholesale pricing.Retained
earnings of the Liquor Fund were $997,514 on December 31, 1990 as compared to
$999,042 at the closing of the last fiscal year.
Public Utility Fund
This fund accounts for the operation and financing of the City-owned sewer and water
systems. Included in the assets of the fund is a receivable from the Metropolitan Waste
Control Commission of$210,424. This receivable represents the City's share of the equity
in the Minneapolis Sewer System which was acquired by the Commission on January 1,
1971. This amount will be paid to the City by means of issuing credits against future
sewer billings from the Commission. These credits will be applied in annual installments
with interest through 1999.
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CITY OF FRIDLEY, MINNESOTA
FINANCIAL INFORMATION (CONTINUED)
GENERAL GOVERNMENT FUNCTIONS (CONTINUED)
—
Public Utility Fund
The assets for the water and sewer distribution system, originally financed by special
assessments, were transferred from General Fixed Assets to the Public Utility Fund in 1978.
Additional fixed assets were transferred in 1979, 1984, 1989 and 1990. Those
improvements to the utility system paid for or financed directly by the Public Utility Fund
have always been carried in the Public Utility Fund and depreciated. Retained earnings
on December 31, 1990 were $9,722,181 compared to $9,170,697 at the closing of the
last fiscal year.
RISK MANAGEMENT
The Self Insurance Fund was set up to account for all revenues and expenditures
associated with the$50,000 deductible on the general liability policy. Self insuring a larger
deductible has reduced the annual premiums which allow us to directly benefit from our
—
good experience rating. In the future an analysis will be made of feasibility of self insuring
all or a portion of other policies. In 1990, $1,000,000 was transferred from the General
Fund to the Self Insurance Fund.
OTHER INFORMATION
PENSIONS
Employees in the City of Fridley are covered by five pension plans:
1) Fridley Fire Relief Association for Volunteer Firemen.
2) Fridley Police Relief Association,for Police Officers hired prior to December
15, 1975.
3) Public Employees Retirement Police and Fire Plan,covering the City's full-
time Firemen and Police Officers hired after December 15, 1975.
4) The basic Public Employees Retirement Plan,which covers certain other -,
City civilian employees.
5) Coordinated Public Employees Retirement Plan,which covers the balance
of the 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.
12
CITY OF FRIDLEY, MINNESOTA
.., OTHER INFORMATION (CONTINUED)
INDEPENDENT AUDIT
Section 7.13 of the City Charter requires an annual audit to be made of the books of
account,financial records and transactions of all administrative departments of the City by
a certified public accountant or the State Auditor's Department of the State of Minnesota.
This requirement has been complied with and the opinion of Voto, Tautges, Redpath &
Co., Ltd., is included in this report.
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE
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, 1989.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an
easily readable and efficiently organized comprehensive annual financial report, whose
contents conform to program standards. Such reports 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
report continues to conform to the Certificate of Achievement Program requirements, and
we are submitting it to GFOA to determine its eligibility for another certificate.
ACKNOWLEDGEMENTS
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 Donna Tjomhom, Sharon Fetting, Paul Hansen and Marcy Everette and to
our auditors Voto,Tautges, Redpath&Co.,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,
giaast. . -2)41.4 40.3)t4.-a4,4j1
Richard D. Pribyl David J. DuBord
Finance Director Assistant Finance Director
13
•
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, 1989
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFR's) achieve the highest
standards in government accounting
and financial reporting.
S1A1ES r
n o President
se"" Z‘det lA 1�K0
Executive Director
15
FINANCIAL SECTION
IMMO
OMNI
a
Oft
r
AUDITOR'S OPINION
VOTO, TAUTGES, REDPATH & CO., LTD. V11.1Sw
CERTIFIED PUBLIC ACCOUNTANTS
Birch Lake Professional Building • 1310 E. Hwy. 96• White Bear Lake, MN 55110 • Fax(612)426-5004
• Phone(612)426-3263
ROBERT J.VOTO,CPA
ROBERT G.TAUTGES,CPA
JAMES S.REDPATH,CPA
D.KENNETH GEORGE,CPA
DAVID J.MOL,CPA
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Fridley,Minnesota
We have audited the general purpose financial statements of the City of Fridley,Minnesota,as of and for the year
ended December 31, 1990 as listed in the table of contents. These financial statements are the responsibility of the
City's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards,Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining,on a test basis,evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by management,as well
as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for
our 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, 1990,and the results of its operations and
its cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting
principles.
Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a
whole.The combining,individual fund,account group fmancial statements,supporting schedules and statistical
information in the table of contents is presented for purposes of additional analysis and is not a required part of the
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 financial statements and,in our opinion,is fairly stated in all material respects in relation to the
general purpose fmancial statements taken as a whole.
May 14, 1991
� /64444 #6.
VOTO,TAUTGES,REDPATH &CO.,LTD.
Certified Public Accountants
/ME MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • PRIVATE COMPANIES PRACTICE SECTION
MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
GOVERNMENT FINANCE OFFICERS ASSOCIATION • MINNESOTA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS
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
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All
Governmental Fund Types and Expendable Trust Funds
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and
Actual - General and Special Revenue Fund Types
Combined Statement of Revenues, Expenditures, and Changes in Retained Earnings - All
Proprietary Fund Types
Combined Statement of Cash Flows - All Proprietary Fund Types
CITY OF FRIDLEY, MINNESOTA
COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 1990
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
Assets
Cash and cash equivalents $1,785 $66,687 $ $1,185,085
Deposits with trustee
Investments 4,891,073 20,770 10,443,559 11,296,939
Receivables:
Accounts 10,934 20,637 11,275
Taxes 322,195 341,801
Special Assessments 14,081 3,380,013 119,286
Mortgage 993,960
Interest 958,699 95,915
Due from other funds 37,452 1,252 220
Due from other governments 48,636 89,156
Inventories, at cost 20,647
Prepaid items 72,031
Long term receivable
Other assets .,
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 $6,377,533 $198,502 $13,823,572 $14,044,481 --
See Accompanying Notes to Financial Statements
20
Exhibit A-1
Fiduciary
Proprietary Fund Types Fund Types Account Groups Totals
Internal Trust and General General Long (Memorandum Only)
-. Enterprise Service Agency Fixed Assets Term Debt 1990 1989
$986,844 $2,456,369 $69,949 $ $ 4,766,719 1,592,663
11,576,900
3,621,077 30,273,418 36,460,377
689,061 3,587 4,269 739,763 750,940
1,306 665,302 983,303
3,513,380 2,688,716
993,960 990,000
1,054,614 1,035,434
38,924 62,548
28,090 165,882 92,244
314,908 335,555 297,156
147,350 219,381 165,371
210,424 210,424 230,145
3,031,006 3,031,006 2,647,512
17,821,898 26,440,178 44,262,076 42,182,834
10,418,754 10,418,754 23,354,940
5,346,246 5,346,246 6,705,060
$23,819,652 $2,459,956 $3,106,530 $26,440,178 $15,765,000 $106,035,404 $131,816,143
21
CITY OF FRIDLEY, MINNESOTA
COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS (CONTINUED)
December 31, 1990
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
Liabilities, fund equity and other credits
Liabilities
Advance from city's general account $ $70,830 $ $1,298,700
Accounts payable 140,290 27,617 3,973
Deposits payable 1,427 10,000 26,350 86,688
Contracts payable 132,279
Salaries payable 233,872 1,608
Compensated absences payable
Deferred revenue 307,617 3,378,468 1,445,730
Due to other funds 220 38,704
Due to other governments 135 143,473
Bonds payable
Total liabilities 683,341 110,275 3,404,818 3,149,547
Fund equity and other credits
Contributed capital
Investment in general
fixed assets
Retained earnings-
Reserved
Unreserved
Fund balance:
Reserved 343,059 3,452,488 5,449,375
Unreserved-
Designated 4,978,052 7,491 6,545,496
Undesignated 373,081 80,736 6,966,266 (1,099,937)
Total equity and other credits 5,694,192 88,227 10,418,754 10,894,934
Total liabilities, equity
and other credits $6,377,533 $198,502 $13,823,572 $14,044,481
See Accompanying Notes to Financial Statements
22
—
Exhibit A-1
Continued
—
Fiduciary
Proprietary Fund Types Fund Types Account Groups Totals
Internal Trust and General General Long (Memorandum Only)
Enterprise Service Agency Fixed Assets Term Debt 1990 1989
—
$ $ $ $ $ $1,369,530 $1,675,690
123,608 2,873 1,488 299,849 364,566
3,073,380 3,197,845 2,799,551
54,821 187,100 463,743
26,978 262,458 211,040
—
992,875 992,875 1,041,671
1,297 5,133,112 4,586,829
38,924 62,548
—
35,977 6,929 186,514 409,267
15,765,000 15,765,000 30,060,000
241,384 995,748 3,083,094 0 15,765,000 27,433,207 41,674,905
—
12,858,573 12,858,573 13,047,497
— 26,440,178 26,440,178 25,410,099
942,529 1,464,208 2,406,737 2,236,317
—
9,777,166 9,777,166 8,413,626
9,244,922 23,089,587
—
11,531,039 12,175,294
23,436 6,343,582 5,768,818
23,578,268 1,464,208 23,436 26,440,178 78,602,197 90,141,238
$23,819,652 $2,459,956 $3,106,530 $26,440,178 $15,765,000 $106,035,404 $131,816,143
23
CITY OF FRIDLEY, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES-ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS
Year Ended December 31, 1990
Governmental Fund Types —
Special Debt
General Revenue Service
Revenues:
Taxes $3,552,142 $ $
Special assessments 1,288 630,779
Licenses and permits 334,141 74,825
Intergovernmental revenue 3,053,017 324,941
Charges for services 630,015
Fines and forfeits 259,764
Interest on investments 367,776 5,802 812,976
Miscellaneous 99,532 600 1.
Total revenues 8,297,675 406,168 1,443,755
Expenditures:
Current
General government 1,433,714 327,760
Public safety 3,008,700
Civic center 173,260
Public works 2,451,372
Recreation and naturalist 641,432
Debt service 15,789,169
Capital outlay 354,954 55,242
Total expenditures 8,063,432 383,002 15,789,169
Excess(deficiency)of revenues over
expenditures 234,243 23,166 (14,345,414)
Other financing sources(uses):
Proceeds of Refunding Bonds 9,394,489
Operating transfers in 203,409 1,272,719
Operating transfers out (5,948)
Payment to Refunded Bond Escrow Agent (9,257,980)
Total other financing sources(uses) 197,461 0 1,409,228
Excess(deficiency)of revenues and other
financing sources over expenditures
and other financing uses 431,704 23,166 (12,936,186) '^
Fund Balance January 1 6,262,488 65,061 23,354,940
Residual Equity Transfers in (out) (1,000,000)
Fund Balance December 31 $5,694,192 $88,227 $10,418,754
See Accompanying Notes to Financial Statements
24
Exhibit A-2
Fiduciary
Fund Type Totals
Capital Trust and (Memorandum Only)
Projects Agency 1990 1989
$2,584,395 $ $6,136,537 $5,354,751
139,189 771,256 1,998,388
408,966 477,192
178,764 3,556,722 4,968,720
630,015 158,663
259,764 241,235
927,643 5,775 2,119,972 2,095,605
96,374 196,506 350,274
3,926,365 5,775 14,079,738 15,644,828
708,965 3,109 2,473,548 2,013,513
3,008,700 3,030,507
173,260 273,095
141,266 2,592,638 2,222,203
641,432 628,397
15,789,169 3,181,419
2,217,569 2,627,765 6,420,134
3,067,800 3,109 27,306,512 17,769,268
858,565 2,666 (13,226,774) (2,124,440)
9,394,489
5,948 1,482,076 2,656,571
(1,290,592) (9,427) (1,305,967) (2,663,748)
(9,257,980)
— (1,284,644) (9,427) 312,618 (7,177)
(426,079) (6,761) (12,914,156) (2,131,617)
11,321,013 30,197 41,033,699 42,642,258
(1,000,000) 523,058
$10,894,934 $23,436 $27,119,543 $41,033,699
25
CITY OF FRIDLEY, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES- BUDGET AND ACTUAL -
GENERAL AND SPECIAL REVENUE FUND TYPES
Year Ended December 31, 1990
With comparative totals for year ended December 31, 1989 -
General Fund .-
Variance
Favorable
Budget Actual (Unfavorable)
Revenues:
Taxes $3,538,249 $3,552,142 $13,893 ..
Special assessments 2,619 1,288 ($1,331)
Licenses and permits 309,054 334,141 25,087
Intergovernmental revenue 3,124,058 3,053,017 (71,041) ..,
Charges for services 638,911 630,015 (8,896)
Fines and forfeits 287,639 259,764 (27,875)
Interest on investments 270,000 367,776 97,776 -,
Miscellaneous 121,999 99,532 (22,467)
Total revenues 8,292,529 8,297,675 5,146
Expenditures:
Current
General government 1,558,800 1,433,714 125,086 -•
Public safety 3,077,720 3,008,700 69,020
Civic center 173,475 173,260 215
Public works 2,574,847 2,451,372 123,475 -,
Recreation and naturalist 674,435 641,432 33,003
Reserve for Contingency 297,000 297,000
Capital outlay 612,501 354,954 257,547
Total expenditures 8,968,778 8,063,432 905,346
Excess(deficiency)of revenues over -.
expenditures (676,249) 234,243 910,492
Other financing sources(uses):
Operating transfers in 350,713 203,409 (147,304)
Operating transfers out (5,948) (5,948)
Total other financing sources(uses) 344,765 197,461 (147,304) -
Excess(deficiency)of revenues and other
financing sources over expenditures -
and other financing uses (331,484) 431,704 763,188
Fund balance January 1 6,262,488 6,262,488 -,
Residual equity transfer in (out) (1,000,000) (1,000,000)
Fund Balance December 31 $4,931,004 $5,694,192 $763,188
See Accompanying Notes to Financial Statements
26
-
Exhibit A-3
_ Totals
Special Revenue Fund Types (Memorandum Only)
Variance Variance-
_ Favorable Favorable 1989
Budget Actual (Unfavorable) Budget Actual (Unfavorable) Actual
- $ $ $ $3,538,249 $3,552,142 $13,893 $2,939,982
2,619 1,288 1,336
68,000 74,825 6,825 377,054 408,966 31,912 477,192
- 277,195 324,941 47,746 3,401,253 3,377,958 (23,295) 4,937,047
638,911 630,015 (8,896) 158,663
287,639 259,764 (27,875) 241,235
- 2,000 5,802 3,802 272,000 373,578 101,578 466,696
600 600 121,999 100,132 (21,867) 137,010
347,195 406,168 58,973 8,639,724 8,703,843 64,119 9,359,161
- 246,620 327,760 (81,140) 1,805,420 1,761,474 43,946 1,448,977
3,077,720 3,008,700 69,020 3,030,507
173,475 173,260 215 273,095
2,574,847 2,451,372 123,475 2,222,203
674,435 641,432 33,003 628,397
297,000 297,000
- 109,000 55,242 53,758 721,501 410,196 311,305 486,302
355,620 383,002 (27,382) 9,324,398 8,446,434 877,964 8,089,481
(8,425) 23,166 31,591 (684,674) 257,409 942,083 1,269,680
350,713 203,409 (147,304) 150,259
(5,948) (5,948) (854,695)
- 0 0 0 344,765 197,461 (147,304) (704,436)
(8,425) 23,166 31,591 (339,909) 454,870 794,779 565,244
- 65,061 65,061 6,327,549 6,327,549 7,814,002
(1,000,000) (1,000,000) (2,051,697)
$56,636 $88,227 $31,591 $4,987,640 $5,782,419 $794,779 $6,327,549
27
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, 1990
With Comparative Totals for Year Ended December 31, 1989
Proprietary Fund Types Totals
Internal (Memorandum Only)
Enterprise Service 1990 1989 -
Sales and cost of sales:
Sales $2,492,863 $ $2,492,863 $2,382,991
-
Cost of sales 2,002,681 2,002,681 1,929,794
Gross profit 490,182 0 490,182 453,197
Operating revenues: -
Water sales and sewer rents 2,926,154 2,926,154 2,767,449
Other 123,504 123,504 111,731
Charges for services 252,799 252,799 325,803 -.
Total operating revenues 3,049,658 252,799 3,302,457 3,204,983
Operating expenses:
Personal services 906,538 117,958 1,024,496 1,262,538
Supplies and other charges 2,204,237 288,201 2,492,438 2,481,710
Capital outlay 12,962
Depreciation 533,257 533,257 559,981
Total operating expenses 3,644,032 406,159 4,050,191 4,317,191
Operating(loss) (104,192) (153,360) (257,552) (659,011)
Non-operating revenues(expenses):
Interest on investments 429,945 140,752 570,697 517,260
Debt service
Loss on reclassification of assets (741) (741) (1,071)
Other 4,017 57,721 61,738 74,162
Total non-operating revenues
(expenses) 433,221 198,473 631,694 590,351
-
Income before operating
transfers 329,029 45,113 374,142 (68,660)
Operating transfers in 17,177
Operating transfers out (115,000) (61,109) (176,109) (10,000)
Total operating transfers (115,000) (61,109) (176,109) 7,177
-
Net income 214,029 (15,996) 198,033 (61,483)
Credit arising from transfer of
depreciation on contributed capital 335,927 335,927 326,605 ""
Retained earnings January 1 10,169,739 480,204 10,649,943 11,033,828
Residual equity transfers in (out) 1,000,000 1,000,000 (649,007)
Retained earnings December 31 $10,719,695 $1,464,208 $12,183,903 $10,649,943
See Accompanying Notes to Financial Statements --
28
•
Exhibit A-5
CITY OF FRIDLEY, MINNESOTA
-- COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
Year Ended December 31, 1990
- With Comparative Totals for Year Ended December 31, 1989
Proprietary Fund Types Totals
Internal (Memorandum Only)
- Enterprise Service 1990 1989
Cash flows from operating activities:
Operating income (loss) ($104,192) ($153,360) ($257,552) ($626,788)
Adjustments to reconcile operating
income (loss) to net cash flows from
- operating activities:
Depreciation 533,257 533,257 518,917
Other non-operating revenue 4,017 57,721 61,738 74,112
-- Operating transfers in (out) (115,000) (61,109) (176,109) 7,177
Changes in assets and liabilities:
Decrease (increase) in receivables 47,787 (3,282) 44,505 (85,434)
"- Decrease(increase) in due from other funds 3,655 3,655 (3,655)
Decrease (increase) in inventories (40,982) (40,982) 92,376
Decrease (increase) in prepaid items (3,052) 21,073 18,021 (36,967)
- Increase (decrease) in payables (69,162) (45,932) (115,094) 335,764
Net cash flows from operating activities 256,328 (184,889) 71,439 275,502
Cash flows from non-capital financing activities:
Interest received from MWCC 9,449 9,449 10,122
- Residual equity transfers in 1,000,000 1,000,000
Net cash flows from non-capital financing
- activities 9,449 1,000,000 1,009,449 10,122
Cash flows from capital and related financing
- activities:
Acquisition and construction of fixed assets (1,436,157) (1,436,157) (328,649)
- Cash flows from investing activities:
Interest on investments 420,496 140,752 561,248 470,183
-- Net increase (decrease) in cash and cash
equivalents (749,884) 955,863 205,979 427,158
_ Cash and cash equivalents-January 1 1,736,728 1,500,506 3,237,234 2,812,942
Cash and cash equivalents-December 31 $986,844 $2,456,369 $3,443,213 $3,240,100
Non-cash investing, capital and financing activities:
_. System assets of$147,003 were contributed by the Capital Projects Special
Assessment Fund to the Public Utility Enterprise Fund in 1990.
29
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1990
^
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 National Council on Governmental Accounting Statement 3, Defining the
Governmental Reporting Entity. In accordance with Statement 3,for financial reporting purposes
the City's financial statements include all funds, account groups, departments, agencies, boards,
commissions and other organizations over which City officials exercise oversight responsibility.
Oversight responsibility includes such aspects as appointment of governing body members, budget
approval, approval of property tax levies, outstanding debt secured by City full faith and credit or --
revenues, responsibility for funding deficits and others.
Included within the reporting entity:
Fridley Housing and Redevelopment Authority(HRA)-The HRA was created to provide housing
and redevelopment assistance to its citizens. The HRA provides this assistance through the
administration of various programs. A majority of the funding is provided through the issuance
of general obligation tax increment bonds guaranteed by the City. The City would also be
responsible for deficits, therefore, the HRA is considered a component unit of the City. The
operations of the HRA are reported in separate Debt Service and Capital Projects Funds.
Excluded from the reporting entity:
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 Police and Volunteer Firefighters Relief Associations-These associations are organized
as non-profit organizations by their members to provide pension and other benefits to such
members in accordance with Minnesota Statutes. Their boards of directors are elected by the
membership of the association. All funding is conducted in accordance with Minnesota Statutes,
whereby state aids flow to the associations, tax levies are determined by the associations and
are only reviewed by the City. The associations pay benefits directly to their members. The
associations may certify tax levies to the County directly if the City does not carry out this function.
Because the associations are able to fund their programs independently of the City, they are
excluded from the reporting entity. (See Notes 9 and 10 for disclosures relating to the pension
plans operated by these organizations.)
30
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
1. Summary of Significant Accounting Policies (Continued)
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 use 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.
31
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990 —
1. Summary of Significant Accounting Policies (Continued)
B. Fund Accounting
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.
The 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.
32
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
1. Summary of Significant Accounting Policies (Continued)
C. Measurement Focus (Continued)
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.
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 budget ordinance. Upon
adoption of the annual budget ordinance by the Council, it becomes the formal appropriation
budget for City operations.
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.
33
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
1. Summary of Significant Accounting Policies (Continued)
E. Budgets and Budgetary Accounting (Continued)
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of an ordinance.
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. Formal budgetary integration is employed as a management control device during the
year for the General Fund and Special Revenue 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 Capital Projects Funds is
accomplished through the use of project controls.
8. Budgets for the General and Special Revenue Funds are adopted on a basis consistent
with generally accepted accounting principles.
9. As required by the City Charter, budgetary control is maintained within department at the
level of three major categories of expenditures: salaries and wages; ordinary expenses;
and capital outlay. This is the level of control at which expenditures may not legally
exceed appropriations.
10. The General Fund budget includes prior year encumbrances which were reappropriated
to the current year. Expenditures for the items encumbered are included in the current
year's expenditures. Expenditures exceeded appropriations in the Grant Management
Special Revenue Fund for general government by$102,521 and was related to the receipt
of additional unbudgeted recycling grant revenue. Expenditures were approved through
the disbursement approval process.
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. Earnings from such investments are allocated to the respective funds on the basis
of applicable cash balance participation by each fund. With exception of the Deferred
Compensation Agency Fund which states investments in deferred compensation plan at
market, all investments are stated at cost which approximates market. Investments with
original maturities of three months or less are classified as cash equivalents. The allocation
34
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
1. Summary of Significant Accounting Policies (Continued)
F. Assets, Liabilities and Fund Equity (Continued)
-- 1) Cash and Cash Equivalents, and Investments (Continued)
of investments from the investment pool to the proprietary funds was the same for the 1989
and 1990 year ends.
The City provides temporary advances to funds that have insufficient cash balances by
means of an advance from the general account. This is classified as a liability of the
fund until adequate resources are received.
2) Receivables
Property Taxes
Property tax levies are set by the City Council in October each year and are 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.
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.
Cities in Minnesota operate under a levy limitation set by state statutes. For taxes payable
1990, the 1989 tax levy plus state paid aids was increased 3% for inflation and an
additional 1.007% for the percentage increase in households. Levies for bonded
indebtedness are not limited by the law.
Taxes payable on homestead property(as defined by State Statutes)are partially reduced
by a homestead credit. This credit is paid to the City by the State in lieu of taxes levied
against homestead property. The State remits this credit in two equal installments in July
and December each year.
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
35
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990 .�
1. Summary of Significant Accounting Policies (Continued)
F. Assets, Liabilities and Fund Equity (Continued)
2) Receivables (Continued) -.
Special Assessments Receivable (Continued)
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.
Delinquent - amounts billed to property owners but not paid.
Deferred - assessment installments which will be billed to property owners in '.t
future years.
3) Inventories
Inventories are stated at cost or based on perpetual inventory systems.
Inventory in the General Fund consists of expendable supplies held for consumption.
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).
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.
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
36
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
1. Summary of Significant Accounting Policies (Continued)
F. Assets, Liabilities and Fund Equity (Continued)
"" 4) Property and Equipment/General Fixed Assets (Continued)
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) Other Assets
This account represents the market,value of investments and other assets held in an
..., agency fund for the City's deferred compensation plan. (See Note 15.)
6) 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 approved leaves by employee. The personnel
ordinance limits the annual accumulation of benefits that can be accumulated from year
to year.
7) 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.
37
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990 —
1. Summary of Significant Accountings Policies (Continued)
G. Revenues, Expenditures and Expenses (Continued)
Interest Revenue on Special Assessments Receivable- Interest revenue is recognized in the year —
of collection of the current principal installment.
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 such as in the State Aid Fund.
Interest on Investments - 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 changes in financial position in conformity with generally —'
accepted accounting principles. Interfund eliminations have not been made in the aggregation of
this data Certain 1989 amounts have been reclassified to conform to the 1990 presentation.
Cash Flows Statements
The Governmental Accounting Standards Board Statement No. 9 requires that governments include
a statement of cash flows for proprietary and nonexpendable trust funds to replace the statement
of changes in financial position as a basic financial statement. GASB statement No.9 was effective
for fiscal periods beginning after December 15, 1989 and accordingly its requirements have been
incorporated in the accompanying financial statements and the prior year statements have been --
restated.
38
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
— DECEMBER 31, 1990
2. Deposits and Investments
A. Deposits
• In accordance with applicable Minnesota Statues,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 Statues 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.
Balances at December 31, 1990 are as follows:
Bank Carrying
Balances Amount
1) Insured or collateralized by securities held
by the City or its agent in the City's name $1,174,402 $1,072,753
2) Collateralized with securities held by the pledging
institution trust department in the City's name 0 0
3) Uncollateralized or collateralized with
securities not in the City's name 0 0
—
Totals $1,174,402 $1,072,753
Categories 2 and 3 are not procedures that are authorized by Minnesota statutes.
—
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.
39
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
2. Deposits and Investments (Continued)
—
B. Investments (Continued)
(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'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 Category 1 securities consist of the various investment types shown below which are held by a trustee —
in the City's name.
The carrying value, market value and credit risk of the investments held by the City at year end are as
follows: —'
^
Credit Risk Category Carrying Market
Securities Type 1 2 3 Amount Value
U.S. Government securities $2,730,478 $2,730,478 $3,120,530 -�
U.S. Government agencies
or instrumentalities 21,163,693 21,163,693 21,346,498
Commercial paper 5,128,262 5,128,262 5,128,262
Repurchase agreements 1,922,055 1,922,055 1,922,055
$29,022,433 $0 $1,922,055
Investment in money
market fund (at market) 708,868 708,868
Investment in mutual fund 939,826 939,826
Investment in deferred —
compensation plan (at market) 3,031,006 3,031,006
Total investments $35,624,188 $36,197,045
40
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
2. Deposits and Investments (Continued)
Cash and Cash Equivalents and Investments per accompanying financial statement:
Cash and cash equivalents $4,766,719
Investments 30,273,418
Advance from city's
general account (1,369,530)
Total $33,670,607
3. Special Assessments Receivable
Special assessments receivable at December 31, 1990 are as follows:
Special
Special Assessment
Assessment Capital
General Debt Service Projects Total
'— Unremitted $1,544 $1,544
Delinquent 6,548 143,642 1,468 151,658
Deferred 7,533 3,234,827 117,818 3,360,178
Total $14,081 $3,380,013 $119,286 $3,513,380
41
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
4. Due From Other Governments
Amounts due from other governments at December 31, 1990 are as follows:
General Fund: -�
State of Minnesota:
a) State Aid Mainenance $19,581
b) Public Employees' Retirement Association 2,694
Anoka County:
a) Fines and Forfeits 22,262
b) Gas Reimbursement 251
c) DWI Grant Reimbursement 905
d) Miscellaneous 90
City of Columbia Heights 46
City of Coon Rapids 556
City of Hilltop 406
City of St. Anthony 556
City of Spring Lake Park 601
School District#14 688
Total General Fund $48,636
Special Revenue Funds:
State of Minnesota-Section 8 Housing 7,951
Anoka County:
a) Community Development Block Grant 11,657
b) Recycling 67,532
Greater Minneapolis Council of Churches 2,016
Total Special Revenue Funds $89,156
Enterprise Funds:
Utility Funds:
Metropolitan Waste Control Commission (MWCC) - ••.1%.
Current portion of amounts due from MWCC $18,217
Non-current portion - long term receivable of amounts
due from MWCC $210,424
42
•
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
4. Due From Other Governments (Continued)
The non-current receivable in the Utility Enterprise Fund represents:
1. The balance due for the sale of the City's sewer interceptors is $210,424 (the interceptors were
sold to the Metropolitan Waste Control Commission January 1, 1971). This receivable will be
paid to the City in annual installments with interest through 1999. Repayment will be made by
issuing credits against future disposal charges from the Commission.
2. The amount of$9,940, which will be repaid with interest through 1998, is for advances made to
the Commission during 1971 and 1972.
5. Changes In General Fixed Assets
A summary of changes in general fixed assets are as follows:
Balance Balance
Jan 1, 1990 Additions Deletions Dec 31, 1990
Land $1,917,024 $59,278 $1,976,302
Buildings 4,412,051 99,717 1,150 $4,510,618
-- Improvements other than
buildings 13,228,165 2,099,901 $15,328,066
Machinery and equipment 4,066,976 610,708 52,492 $4,625,192
Construction in progress 1,785,883 363,673 2,149,556 $0
Total $25,410,099 $3,233,277 $2,203,198 $26,440,178
43
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
6. Summary of Proprietary Fund Property and Equipment
A summary of proprietary fund type property, plant and equipment at December 31, 1990 follows:
Enterprise
Public
Liquor Utilities Total
Land $66,961 $154,531 $221,492
Buildings 174,116 1,556,891 1,731,007
Improvements other than
buildings 18,677 3,211,699 3,230,376
Machinery and equipment 174,498 2,183,336 2,357,834
Water and sewer lines 17,002,306 17,002,306
434,252 24,108,763 24,543,015
Less:
Accumulated depreciation (221,780) (6,499,337) (6,721,117)
Net property and
equipment $212,472 $17,609,426 $17,821,898
7. Long-Term Debt
The following is a summary of long-term debt transactions of the City for the year ended December 31,
1990:
Bonds payable at January 1, 1990 $30,060,000
Bonds issued 9,485,000
Bonds retired (1,100,000)
Bonds refunded through call - 1985 (13,620,000)
Bonds defeased- 1986 (9,060,000)
Bonds payable at December 31, 1990 $15,765,000
44
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
7. Long-Term Debt (Continued)
Bonds payable at December 31, 1990 are comprised of the following individual issues (in thousands of
dollars):
General Long-Term Debt:
$2,135,000 G.O.Special Assessment Bonds of 1972 due in annual installments
of $50,000 through January 1, 1994; interest at 5.20% - 5.30% $ 150
$1,755,000 Special Assessment Bonds of 1980 due in varying annual
installments of$25,000-$100,000 through February 1,2001;interest at 7.50%
— - 8.40% 400
$1,425,000 Special Assessment Bonds of 1982 due in varying annual
installments of$15,000-$120,000 through February 1, 1999; interest at 9.40%
- 10.70% 420
$2,705,000 Refunding Improvement Bonds of 1986 due in varying annual
installments of$170,000-$290,000 through February 1,2000;interest at 6.00%
- 7.40% 2,260
$4,070,000 Tax Increment Revenue Refunding Bonds of 1985 due in varying
annual installments of$245,000-$460,000 through February 1, 1999; interest
at 6.75% - 9.00% 3,050
$9,485,000 General Obligation Tax Increment Refunding Bonds of 1990 in
varying annual installments of$810,000-$1,270,000 through August 1, 2009;
interest at 6.60% - 7.00% 9.485
$ 15,765
The Tax Increment Revenue Refunding Bonds are payable solely from increment revenue that is generated
from the related increment district. General Obligation Tax Increment Refunding Bonds are payable
primarily from tax increment revenue with any deficiency to be provided by general property taxes.
On February 1, 1990, the$11,550,000 variable rate General Obligation Tax Increment Bonds of 1985, and
outstanding in the amount of $10,845,000, were crossover refunded and paid in full.
The HRA issued$9,485,000 General Obligation Tax Increment Refunding Bonds of 1990, dated March 1,
1990. The proceeds of the bonds were used to refund, in an'advance refunding", in advance of maturity
... all of the outstanding General Obligation Tax Increment Refunding Bonds, Series 1986, dated August 1,
1986, as the date of the original issue, issued in the amount of $10,045,000 on August 15, 1986, and
outstanding in the amount of $9,060,000.
45
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990 _
7. Long-Term Debt (Continued)
—
The difference between the cash flows required to service the$10,045,000 (old) debt and the cash flows
required to service the$9,485,000(new) debt and complete the refunding and the economic gain or loss
resulting from the transaction are below: —
Cash Flow Difference:
Old debt service cash flows 13,529,490
New debt service cash flows 19,782,140
Less accrued interest included —
in payment 4/10/90 (48,684) 19,733,456
Cash flow difference (6,203,966)
Economic Gain (Loss):
—
Present value of old debt service
cash flows 9,127,696
Present value of new debt service
cash flows 9,310,834
Economic loss (183,138)
46
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-- DECEMBER 31, 1990
7. Long-Term Debt (Continued)
Annual Requirements to Amortize Long-Term Debt
December 31, 1990
General Obligation
Year Ending Special
December 31 Assessment Redevelopment Total
1991 $619,147 $1,137,514 $1,756,661
1992 575,567 1,138,695 1,714,262
1993 533,933 1,137,714 1,671,647
1994 479,339 1,134,470 1,613,809
1995 388,585 1,133,740 1,522,325
1996 - 2000 1,861,758 5,167,000 7,028,758
2001 - 2005 26,050 7,295,190 7,321,240
2006 - 2009 0 5,725,180 5,725,180
$4,484,379 $23,869,503 $28,353,882
$10,418,754 is available in the Debt Service Fund to service the General Obligation 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, 1990, the legal debt margin was $20,506,964.
47
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990 —
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
pension 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 public employee retirement —
systems.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated members
are covered by Social Security and Basic 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. The payroll for employees covered by PERF
and PEPFF for the year ended December 31, 1990,was$3,160,363 and$1,122,760, respectively; -,
the City's total payroll was $5,365,882.
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 member's
average salary for any five successive years of allowable service, age, and years of credit at
termination of service. Two methods are used to compute benefits for Coordinated and Basic
members. The retiring member receives the higher of step-rate benefit accrual formula (Method
1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rates for a Basic
member is 2 percent of average salary for each of the first 10 years of service and 2.5 percent .,
for each remaining year. For a Coordinated member,the annuity accrual is 1 percent of average
salary for each of the first 10 years and 1.5 percent of each remaining year. Using Method 2, the
annuity accrual rate is 2.5 percent of average salary for Basic members and 1.5 percent for
Coordinated members. For PEPFF members, the annuity accrual rate is 2.5 percent of average
salary for each of the first 25 years and 2 percent for each remaining year. For PERF members
whose annuity is calculated using Method 1, and for all PEPFF members, a full annuity is available
when age plus years of service equal 90. -�
There are different types of annuities available to members upon retirement. A normal annuity is
a lifetime annuity that ceases upon the death of the retiree. No survivor annuity is payable. IN.al
There are also various types of joint and survivor annuity options available which will reduce the
monthly normal annuity amount, because the annuity is payable over joint lives. Members may
also leave their contributions in the fund upon termination of public service, in order to qualify for
a deferred annuity at retirement age. Refunds of contributions are available at any time to
members who leave public service, but before retirement benefits begin.
B. Contributions Required and Contributions Made -,
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. The
City makes annual contributions to the pension plans equal to the amount required by State
statutes. According to Minnesota Statutes Chapter 356.215, Subdivision 4 (g), the date of full
funding required for the PERF and the PEPEF is the year 2020. As part of the annual actuarial
valuation, PERA's actuary determines the sufficiency of the statutory contribution rates towards
meeting the required full funding deadline. The actuary compares the actual contribution rate to
a'required' contribution rate. Current combined statutory contribution rates and actuarially required
contribution rates for the plans are as follows:
48
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
�- DECEMBER 31, 1990
8. Defined Benefit Pension Plans-Statewide (Continued)
B. Contributions Required and Contributions Made (Continued)
Statutory Rates: Required
Employees Employer Rates
... PERF:
Basic&
Coordinated plans 4.47% 4.82% 8.83%
-_ PEPFF 8.00% 12.00% 16.21%
Total contributions made by the City during fiscal year 1990 were:
Percentage of
Amounts Covered Payroll
Employees Employer Employees Employer
PERF:
Basic& $40,998 $53,452 8.23% 10.73%
Coordinated plan 112,611 119,267 4.23% 4.48%
PEPFF 89,821 134,731 8.00% 12.00%
Total $243,430 $307,450
The City's contribution for the year ended June 30, 1990, to the PERF represented .35 percent of
total contributions required of all participating entities. For the PEPFF, contributions for the year
ended June 30, 1990, represented .93 percent of total contributions required of all participating
entities.
C. Funding Status and Progress
1. Pension Benefit Obligation
The'pension benefit obligation'is a standardized disclosure measure of the present value
of pension benefits, adjusted for the effects of projected salary increases and step-rate
benefits, estimated to be payable in the future as a result of employee service to date.
The measure,which is the actuarial present value of credited projected benefits, is intended
to help users assess PERA's funding status on a going-concern basis, assess progress
made in accumulating sufficient assets to pay benefits when due,and make comparisons
among Public Employees Retirement Systems and among employers. PERA does not
make separate measurements of assets and pension benefit obligation for individual
employers.
49
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990 _
8. Defined Benefit Pension Plans-Statewide (Continued)
—
C. Funding Status and Progress (Continued)
1. Pension Benefit Obligation (Continued) —
The pension benefit obligations of the PERA as of June 30, 1990, were as follows:
Public Public
Employees Employees
Retirement Police& —
Fund Fire
(PERF) (in millions) (PEPFF)
Total pension benefit obligations $4,090 $657
Net assets available for benefits, .,
at cost(Market values in millions)
PERF=$3,547
PEPFF=$803 3,250 739 -•
Unfunded (assets in excess of)
pension benefit obligation $840 ($82)
The measurement of the pension benefit obligation is based on an actuarial valuation as
of June 30, 1990. Net assets available to pay pension benefits were valued as of June
30, 1990.
2. Changes in Actuarial Methods and Benefit Provisions
For the fiscal year 1990 actuarial valuation,the PERA Board of Trustees approved the use r"
of new withdrawal rates. The change was made to reduce, if not eliminate,the series of
large, annually recurring actuarial losses in the last few years due to lower than expected
terminations. —
With the adoption of new withdrawal rates, the pension benefit obligation increased
$59,942,000 in the PERF and $6,978,000 in the PEPFF.
50
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
8. Defined Benefit Pension Plans-Statewide (Continued)
D. Ten-Year Historical Trend Information
Ten-year historical trend information is presented in PERA's Comprehensive Annual Financial
Report for the year ended June 30, 1990. This information is useful in assessing the pension
plan's accumulation of sufficient assets to pay pension benefits as they become due.
E. Related Party investments
As of June 30, 1990, and for the fiscal year then ended, PERA held no securities issued by the
City or other related parties.
F. Federal Insurance Contribution Act (Social Security)
Approximately sixty (60%) percent of the permanent City employees are covered by Social Security.
The 1990 contribution rate was 7.65%on$51,300 in wages. The cost of Social Security for 1990
was$208,441. In addition,as of April 1, 1986 all newly hired or returning seasonal employees who
are not covered by PERA and thus contributing to Social Security, must contribute 1.45% of their
salary with an equal match made by the City. The 1990 cost for Medicare was $9,172.
9. Defined Contribution Pension Plan - Fridley Volunteer Firefighter Relief Association
A. 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. The City's annual payroll was$5,365,882. There are no payroll earnings for
volunteer firefighters subject to pension contributions; however, in accordance with the Associations
_ bylaws, each active and deferred member contributes$150 per year to the Association. The City
also remitted$89,996 and$88,192 in State Aid to the Association for 1990 and 1989 respectively.
51
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
9. Defined Contribution Pension Plan-Fridley Volunteer Firefighter Relief Association (Continued)
A. Plan Description (Continued)
Currently the City does not levy any taxes on behalf of the Association. In the event that the state
aid formulas would change, the City would pick up the shortfall.
The contribution benefits for each member (and earnings allocated to each members account)
are vested as follows: -,
Years of Service Percent Vested
0 thru 9 years 0%
10 years 60%
11 years 64%
12 years 68%
13 years 72%
14 years 76%
15 years 80%
16 years 84%
17 years 88%
18 years 92%
19 years 96%
20 years and over 100%
Normal Retirement Eligibility
50 years of age and 20 years of service.
Deferred Vested Eligibility
On termination after completion of 10 years of service, a deferred benefit is payable at age 50
equal to the accrued benefit times the vesting percentage.
Lump Sum Death Benefit
Payment of an amount not to exceed $1,000 as a funeral benefit to the surviving spouse, or if -�
no surviving spouse, the estate of the deceased Association member.
During 1990 and as of December 31, 1990 the Association held no securities issued by the City
or other related parties.
•
52
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
10. Defined Benefit Pension Plan - Fridley Police Relief Association
A. Plan Description
The City contributes to the Fridley Police Relief Association(Association),a single-employer public
employee retirement system that acts as a common investment and administrator for the City's
police officers. The City's payroll for employees covered by the Association for the year ended
_ December 31, 1990 was $445,068; the City's total payroll was $5,365,882.
Police officers of the City hired prior to December 15, 1975, are members of the Association.
Police officers hired after December 15, 1975 are members of the PERA Public Employees Police
and Fire Fund. Association members are entitled to the following benefits:
Age and Service Retirement
Eligibility 50 years of age and 10 years of service
Amount For first 10 years of service, 15/75 of base pay. For each year in excess of 10, an
additional 2/75 is added. For each year in excess of 20, an additional 1/75 is added up to a
maximum of 42/75 of base pay.
Pay Used for Plan Purposes For benefit determination purposes,'base pay'means the salary
of a first grade patrolman for the second month of the previous fiscal year. For contribution
purposes, it means the present base pay of a first grade patrolman.
Disability Retirement
Eligibility Disabled to the extent that member is no longer able to perform the duties of a police
officer before being eligible for age and service retirement.
Amount 36/75 of base pay.
Member's Death while Active, or in Deferred Status or Retired
Eligibility
Spouse Legally married to member at least one year prior to separation from service and
residing with member at time of death. Benefits terminate upon remarriage.
Child Younger than age 18.
Amount
Spouse 18/75 of base pay.
Child 6/75 of base pay per child. Children's maximum is 18/75 if spouse is receiving of
36/75 if no spouse is receiving.
53
CITY OF FRIDLEY, MINNESOTA —
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
10. Defined Benefit Pension Plan - Fridley Police Relief Association (Continued)
A. Plan Description (Continued) ._
Vested Deferred 10 years of service and separated before age 50. Maximum benefit is 40/75
of base pay. Payment beginning is deferred to attainment of age 50.
Post-Retirement Adjustment (Escalator) Each time base pay is changed, payments to all benefit
recipients are simultaneously changed by the same percent that base pay is changed. (Exception
- For members on age and service retirement with less than 20 years service, the maximum
increase is 3% compounded annually. Also, applies to survivors of these retirants).
Police officers who are members of the Association are required to pay 8 percent of their base ■
pay to the Association; 75 percent of the member's contribution is refundable, without interest, if
no benefit is payable upon separation of service. The City makes annual contributions to the
relief association equal to the amount required by state statutes.
B. Funding Status and Progress
The amount shown below as the'pension benefit obligation'is a standardized disclosure measure
of the present value of pension benefits, adjusted for the effects of projected salary increases,
estimated to be payable in the future as a result of employee service to date. The measure is the
actuarial present value of credited projected benefits and is intended to (i) help users assess the
plan's funding status on a going-concern basis. (ii) assess progress being made in accumulating
sufficient assets to pay benefits when due,and(iii)allow for comparisons among public employees
retirement plans. The measure is independent of the actuarial funding method used to determine
contributions to the plan.
The pension benefit obligation was determined as part of an actuarial valuation of the plan as of
December 31, 1990. Significant actuarial assumptions used in determining the pension benefit
obligation include (a) a rate of return on the investment of present and future assets of 5.0% per
year compounded annually,(b)projected salary increases of 3.5%per year compounded annually,
attributable to inflation, and (c) the assumption that benefits will increase 3.5% per year after
retirement.
54
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
—
DECEMBER 31. 1990
10. Defined Benefit Pension Plan - Fridley Police Relief Association (Continued)
B. Funding Status and Progress (Continued)
— As of December 31,1990,1989 and 1988,(actuarial valuation dates),the unfunded pension benefit
obligation was determined as follows:
—
1990 1989 1988
Pension Benefit Obligation:
Retirees and beneficiaries currently receiving
benefits and terminated employees not yet
receiving benefits $5,248,980 $4,955,628 $3,751,992
Current employees--
Accumulated employee contributions including
-" allocated investment income 295,542 299,882 362,910
Employer financed 1,384,248 1,389,242 1,864,066
Total Pension Benefit Obligation $6,928,770 $6,644,752 $5,978,968
— Net assets available for benefits, at cost
(market value was$4,818,301 for 1987,
$5,398,954 for 1989 and$5,861,250 for 1990) 5,728,808 5,286,411 4,838,092
Unfunded Pension Benefit Obligation $1,199,962 $1,358,341 $1,140,876
— Net assets available/Pension benefit obligation 82.68% 79.56% 80.92%
Unfunded pension benefit obligation/
Annual covered payroll 359.10% 381.50% 256.30%
— Employer contributions/Annual covered payroll 45.40% 53.30% 38.34%
No changes in actuarial assumptions or benefit provisions that would significantly affect the
valuation of the pension benefit obligation occurred during 1990.
55
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
10. Defined Benefit Pension Plan - Fridley Police Relief Association (Continued)
C. Contributions Required and Contributions Made
Financial requirements of the Association are determined on an actuarial basis using the entry
age normal actuarial cost method. Normal cost is funded on a current basis. The unfunded ..
actuarial accrued liability is to be funded by December 31, 2010. The City's minimum obligation
is the financial requirement for the year less anticipated member contributions and state aids.
Any additional payments by the City shall be used to amortize the unfunded liability of the
Association. The funding strategy for normal cost and the unfunded actuarial accrued liability
should provide sufficient resources to pay Association benefits on a timely basis.
Total contributions to the Association in 1990 amounted to$228,733, of which$50,507 and$26,688 -,
were made by the City and its police officers respectively and of which $151,538 was state aid
received by the City and remitted to the Association. The contributed amounts were actuarially
determined as described above and were equal to the contribution requirements determined by ..
an actuarial valuation of the plan as of December 31, 1988. The contributions represent funding
for normal cost of $83,495 and the amortization of the unfunded actuarial accrued liability of
$95,691. Contributions made by the City and its police officers represent 45.4 percent and 6.0
percent, respectively, of covered payroll for the year.
Significant actuarial assumptions used to compute pension contribution requirements are
substantially the same as those to determine the standardized measure of the pension obligation. ••
The computation of the pension contribution requirements for 1990 was based on the same
actuarial assumptions, benefit provision, actuarial funding method, and other significant factors
used to determine pension contribution requirements in previous years. The contribution
requirements based on the December 31, 1990 actuarial valuation and effective January 1, 1992
are $100,610 to amortize the unfunded actuarial accrued liability and $159,735 of employer
contributions for normal costs. -,
D. Historical Trend Information
Historical trend information related to the pension plan is presented in the Association's annual -,
financial report. The information is presented to enable the reader to assess the progress made
by the Association in accumulating sufficient assets to pay pension benefits as they become due.
11. Interfund Receivables and Payables
Interfund receivables and payables at December 31, 1990 are as follows:
Interfund Interfund -,
Receivables Payables
Due From/Due To:
General Fund $37,452
Special Revenue Fund -
HRA Reimbursement Fund 1,252 220
Capital Projects Funds-
HRA Fund 220 38,704
$38,924 $38,924
56
•
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
12. Reserved Fund Balances/Retained Earnings
The following reservations have been made of various fund balances/retained earnings at December 31,
1990.
Fund Balance
General Fund
Reserved for:
— Encumbrances $322,412
Inventory 20,647
— 343,059
Debt Service Funds
Reserved for Debt Service $3,452,488
Capital Projects Funds
Reserved for:
Encumbrances 273,027
Construction 5,176,348
5,449,375
Total Governmental Funds $9,244,922
Retained Earnings
Enterprise Funds
Public Utilities $942,529
Internal Service Funds
Employee Benefits Fund
Reserved for employee benefits 410,133
Self-Insurance Fund
Reserved for contingencies 1,054,075
Total Internal Service Funds $1,464,208
Total Proprietary Funds $2,406,737
57
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
13. Designated Fund Balance
The following designations have been made of various fund balances at December 31, 1990:
General Fund:
Working Capital $3,201,683
Subsequent Year's Expenditures 373,683
Contingencies 896,876
Replacement of Fixed Assets 505,810
$4,978,052
Special Revenue Funds:
Cable TV Fund- ..
Subsequent Year's Expenditures 6,317
Grant Management Fund-
Subsequent Year's Expenditures 1,174
$7,491
Capital Projects Funds: .,
Capital Improvement Fund-
Replacement of Fixed Assets $1,827,593
Park Improvement 773,754
Street Improvements 3,944,149
6,545,496
Total of Designated Fund Balances $11,531,039
58
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
14. Segment Information for Enterprise Funds
The City maintains operating funds for Liquor and Utility (Water, Sewer, Storm Sewer Operations). Segment
information for the year ended December 31, 1990 is as follows:
Total
Enterprise
Liquor Utility Funds
Sales(less cost of sales
—
of$2,002,681) $490,182 $ $490,182
Operating revenues 3,049,658 3,049,658
Operating expenses (430,805) (3,213,227) (3,644,032)
Operating income(loss) 59,377 (163,569) (104,192)
Non-operating revenues
(expenses) - net 54,095 379,126 433,221
Income before operating
transfers 113,472 215,557 329,029
Operating transfers to other funds (115,000) (115,000)
Net income ($1,528) $215,557 $214,029
Depreciation expense included in
operating expenses $16,271 $516,986 $533,257
Property and equipment-
— Additions 1,583,160 1,583,160
Deletions (30,322) (30,322)
— Working capital 785,042 4,760,904 5,545,946
Total assets 1,110,985 22,708,667 23,819,652
Fund equity-
Contributed 12,858,573 12,858,573
Retained earnings $997,514 $9,722,181 $10,719,695
59
CITY OF FRIDLEY. MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31. 1990 •
,^
15. Deferred Compensation Plan
The City offers its employees a deferred compensation plan established in accordance with Internal
Revenue Code Section 457. The plan, available to all employees, permits them to defer a portion of their
salary until future years. The deferred compensation is not available to employees until termination, ....
retirement, death, or unforeseeable emergency.
All amounts of compensation deferred under the plan, all property and rights purchased with those
amounts,and all income attributable to those amounts,property,or rights are(until paid or made available
to the employees or other beneficiary)solely the property and rights of the City, subject only to the claims
of the City's general creditors. Participants' rights under the plan are equal to those of general creditors
of the City in an amount equal to the fair market value of the deferred account for each participant.
It is the opinion of the City's legal counsel that the City has no liability for losses under the plan but does
have the duty of due care that would be required of an ordinary prudent investor. The City believes that
it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. J
Plan assets are $3,031,006 stated at market on December 31, 1990 and are shown in the financial
statements as 'Other assets' in the agency funds with a corresponding credit to 'Deposits payable".
16. Litigation .,
The City had the usual and customary type of miscellaneous claims pending at year-end, mostly of a
minor nature and usually all covered by insurance carried for that purpose. At the present time, there is
no significant litigation pending not covered by the City's insurance.
17. Leases
The City leases the property at 214 Mississippi from the Fridley Housing and Redevelopment Authority
for a warehouse liquor store. The City and Housing and Redevelopment Authority have a lease with one
year options. Rental expense is $21,250 annually.
18. Prior Period Adlustment
In 1990, the City developed the necessary data to compute the liability for severance and separation
benefits in the Employee Benefit Fund for the first time. A summary of the effects of this restatement is
as follows:
Net Retained
Income Earning
1989 12/31/89
—
As previously reported $43,700 $647,106
Adjustment for recognition of severance/ (305,522) (305,522)
separation liability
As adjusted ($261,822) $341,584
60
•
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1990
19. Subsequent Event
On January 1, 1991, the City issued the$1,615,000 General Obligation Water Revenue Bonds of
1991 and the$1,020,000 General Obligation Improvement Bonds of 1991. The bonds were issued
- to finance various improvements to the water utility and various improvement projects completed
or under construction within the City respectively.
-
20. Deficit Balances
The following fund had a deficit balance at December 31, 1990:
Capital Project Funds
- Special Assessments $1,099,937
- This deficit balance will be funded by the$1,020,000 General Obligation Improvement Bond Issue
of 1991, discussed above.
21. Residual Equity Transfer
During 1990,the City's General Fund contributed$1,000,000 to the Self Insurance Internal Service
-
Fund. This non-recurring transfer of equity is shown as a residual equity transfer.
- 22. Tax Increment Districts
The Fridley Housing and Redevelopment Authority is the administrating authority for the following
Tax Increment Financing Districts:
Retained
Year Tax Capacity Values Fiscal By
Established District Original Current Captured Disparity Authority
1979 1 257,692 929,460 671,768 0 671,768
1981 2 72,646 229,019 156,373 0 156,373
1982 3 254,067 1,303,700 1,049,633 191,264 858,369
1984 4 108,967 463,463 354,496 0 354,496
1984 5 24,041 42,454 18,413 0 18,413
1985 6 142,172 309,840 167,668 0 167,668
1986 7 10,960 126,192 115,232 0 115,232
1986 8 26,449 38,674 12,225 0 12,225
1989 9 1,045,007 1,059,180 14,173 0 14,173
1990 10 - - - - -
- 1,942,001 4,501,982 2,559,981 191,264 2,368,717
All debt issued is pooled debt. Total bonds issued is $38,575,000. Total amount of bonds
redeemed is$26,040,000. Outstanding bonds at December 31, 1990, is$12,535,000. All taxable
value is currently retained by the Housing and Redevelopment Authority.
61
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, 1990 and 1989
-
1990 1989
-
Assets
"" Cash and cash equivalents $1,785 $2,555,676
Investments 4,891,073 3,050,689
Receivables:
- Accounts 10,934 1,821
Taxes-
Unremitted 28,659 40,398
- Delinquent 293,536 279,354
Special Assessments-
Unremitted 153
'- Delinquent 6,548 5,882
Deferred 7,533 1,954
Interest 958,699 837,531
'_' Due from other governments 48,636 41,140
Due from other funds 37,452
Inventories, at cost 20,647 23,230
- Prepaid items 72,031
Total assets $6,377,533 $6,837,828
Liabilities and Fund Balance
Liabilities:
Accounts payable $140,290 $105,069
-
Deposits payable 1,427 6,847
Salaries payable 233,872 175,744
Deferred revenue 307,617 287,190
-
Due to other governments 135 490
Total liabilities 683,341 575,340
- Fund balance:
Reserve for encumbrances 322,412 648,378
Reserve for inventory 20,647 23,230
Unreserved-
Designated for working capital 3,201,683 3,129,521
Designated for contingencies 896,876 887,497
Designated for subsequent year's expenditures 373,683 1,293,746
Designated for fixed asset replacement 505,810
Undesignated 373,081 280,116
Total fund balance 5,694,192 6,262,488
Total liabilities and fund balance $6,377,533 $6,837,828
63
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, 1990 -
With Comparative Actual Amounts for Year Ended December 31, 1989
1990
Variance
Favorable 1989
Budget Actual (Unfavorable) Actual
Revenues:
-
Taxes $3,538,249 $3,552,142 $13,893 $2,939,982
Special assessments 2,619 1,288 (1,331) 1,336
Licenses and permits 309,054 334,141 25,087 411,168
Intergovernmental revenue 3,124,058 3,053,017 (71,041) 3,444,418
Charges for services 638,911 630,015 (8,896) 158,663
Fines and forfeits 287,639 259,764 (27,875) 241,235
^
Interest on investments 270,000 367,776 97,776 303,951 .
Miscellaneous 121,999 99,532 (22,467) 136,995
Total revenues 8,292,529 8,297,675 5,146 7,637,748
Expenditures:
Current-
General government 1,558,800 1,433,714 125,086 1,121,745
Public safety 3,077,720 3,008,700 69,020 3,030,507
Civic center 173,475 173,260 215 273,095 -
Public works 2,574,847 2,451,372 123,475 2,222,203
Recreation and naturalist 674,435 641,432 33,003 628,397
Reserve for contingency 297,000 297,000
Capital outlay 612,501 354,954 257,547 485,721
Total expenditures 8,968,778 8,063,432 905,346 7,761,668
Excess(deficiency)of revenues
over expenditures (676,249) 234,243 910,492 (123,920)
Other financing sources (uses):
Operating transfers in 350,713 203,409 (147,304) 150,259
Operating transfers out (5,948) (5,948) (605,104) -
Total other financing sources(uses) 344,765 197,461 (147,304) (454,845)
Deficiency of revenues and -
other financing sources over
expenditures and other
financing uses (331,484) 431,704 763,188 (578,765) -'
Fund balance January 1 6,262,488 6,262,488 6,318,195
Residual Equity Transfers(out) (1,000,000) (1,000,000) 523,058
Fund balance December 31 $4,931,004 $5,694,192 $763,188 $6,262,488 --
64
Exhibit B-3
_. CITY OF FRIDLEY, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL
-
Year Ended December 31, 1990
With Comparative Actual Amounts for Year Ended December 31, 1989
1990
Variance
._ Favorable 1989
Budget Actual (Unfavorable) Actual
Taxes and special assessments:
Current ad valorem taxes $3,467,373 $3,458,744 ($8,629) $2,874,288
Delinquent ad valorem taxes 45,000 53,168 8,168 31,474
_ Penalties and interest 22,688 32,185 9,497 29,927
Forfeited sale-taxes 3,188 8,045 4,857 4,293
Special assessments 2,619 1,288 (1,331) 1,336
Total taxes and special
-
assessments 3,540,868 3,553,430 12,562 2,941,318
Licenses and permits:
Licenses-
Contractor 14,024 19,090 5,066 17,970
Business 79,888 77,687 (2,201) 76,967
All other 33,017 32,178 (839) 32,734
Permits 182,125 205,186 23,061 283,497
Total licenses and permits 309,054 334,141 25,087 411,168
Intergovernmental revenue:
Civil defense 6,419 6,162 (257) 5,078
State maintenance aid 179,696 195,811 16,115 174,446
State credits 846,304 846,304 605,506
-
Local government aid 1,837,523 1,740,569 (96,954) 2,381,414
Other state grants 27,761 34,498 6,737 44,207
Police and fire pension 226,355 229,673 3,318 233,767
_ Total intergovernmental revenue 3,124,058 3,053,017 (71,041) 3,444,418
Charges for services:
- General government 474,918 447,061 (27,857) 11,750
Public safety 34,663 39,993 5,330 22,386
Conservation of health 3,581 7,606 4,025 3,115
Recreation 125,749 135,355 9,606 121,412
Total charges for services 638,911 630,015 (8,896) 158,663
_ Fine and forfeits 287,639 259,764 (27,875) 241,235
Interest on investments 270,000 367,776 97,776 303,951
(Continued)
65
Exhibit B-3
Continued
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND _
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL
Year Ended December 31, 1990
With Comparative Actual Amounts for Year Ended December 31, 1989 ,^
1990
Variance
Favorable 1989
Budget Actual (Unfavorable) Actual
Miscellaneous revenue:
Rent income $5,175 $5,571 $396 $6,865
Sale of property 24,514 6,370 (18,144) 34,027
Donations 66,773 58,967 (7,806) 67,539
Miscellaneous refunds 25,537 28,624 3,087 28,564
Total miscellaneous revenue 121,999 99,532 (22,467) 136,995
Total revenues 8,292,529 8,297,675 5,146 7,637,748
Other financing sources:
Operating transfers in - _
Municipal State Aid Fund 138,860
Special Assessment- Cap. Projects 1,399
Special Assessment Encumbrance Fund 12,886 12,886
Liquor Fund 115,000 115,000 10,000
MIS Fund 213,400 (213,400)
IRDB Deposit Fund 9,427 9,427
Special Assessment Funds 4,987 4,987
Self Insurance Fund 61,109 61,109
Total other financing sources 350,713 203,409 (147,304) 150,259
Total revenues and other
. financing sources $8,643,242 $8,501,084 ($142,158) $7,788,007
66
Exhibit B-4
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL
Year Ended December 31, 1990
With Comparative Actual Amounts for Year Ended December 31, 1989
1990
Variance
Favorable 1989
Budget Actual (Unfavorable) Actual
General government:
Mayor and Council -
Personal services $47,766 $45,320 $2,446 $86,123
Supplies and other charges 67,683 50,935 16,748 64,122
115,449 96,255 19,194 150,245
Planning commission -
Personal services 16,484
Supplies and other charges 6,041 2,482 3,559 3,336
6,041 2,482 3,559 19,820
Other commissions-
Personal services 2,948
Supplies and other charges 5,767 3,366 2,401 18,920
-.. 5,767 3,366 2,401 21,868
City manager-
Personal services 234,816 221,180 13,636 154,137
Supplies and other charges 47,558 38,139 9,419 50,002
282,374 259,319 23,055 204,139
- Personnel -
Personal services 56,496 56,496 58,332
Supplies and other charges 15,708 10,525 5,183 7,234
72,204 67,021 5,183 65,566
Legal -
Personal services 317
Supplies and other charges 160,697 149,444 11,253 153,110
160,697 149,444 11,253 153,427
- Elections-
Personal services 3,841
Supplies and other charges 31,751 28,510 3,241 11,721
-
31,751 28,510 3,241 15,562
- (Continued)
67
Exhibit B-4 -
Continued
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES- BUDGET AND ACTUAL -
Year Ended December 31, 1990
With Comparative Actual Amounts for Year Ended December 31, 1989
1990
Variance
Favorable 1989
Budget Actual (Unfavorable) Actual
General government(continued):
Accounting-
-
Personal services $407,519 $407,519 $ $265,622
Supplies and other charges 55,649 53,908 1,741 68,992
463,168 461,427 1,741 334,614
Assessing-
Personal services 134,054 130,112 3,942 133,661
Supplies and other charges 23,949 16,737 7,212 22,843
158,003 146,849 11,154 156,504
MIS - `
Personal services 93,556 87,156 6,400
Supplies and other charges 56,996 42,966 14,030
150,552 130,122 20,430
City clerk/records-
Personal services 74,450 71,745 2,705
Supplies and other charges 4,092 2,182 1,910
78,542 73,927 4,615
Nondepartmental -
Personal services 1,752 832 920
Supplies and other charges 32,500 14,160 18,340
34,252 14,992 19,260
Total general government 1,558,800 1,433,714 125,086 1,121,745
(Continued)
68
Exhibit B-4
Continued
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND
- SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL
Year Ended December 31, 1990
With Comparative Actual Amounts for Year Ended December 31, 1989
1990
Variance
- Favorable 1989
Budget Actual (Unfavorable) Actual
Public safety:
- Police-
Personal services $2,195,569 $2,152,076 $43,493 $2,129,213
Supplies and other charges 269,065 252,393 16,672 265,404
- 2,464,634 2,404,469 60,165 2,394,617
Fire -
- Personal services 513,895 513,895 502,147
Supplies and other charges 92,112 84,455 7,657 95,013
606,007 598,350 7,657 597,160
Civil defense -
Personal services 34,942
- Supplies and other charges 7,079 5,881 1,198 3,788
7,079 5,881 1,198 38,730
- Total public safety 3,077,720 3,008,700 69,020 3,030,507
- Municipal center:
Personal services 22,148 21,933 215 52,000
Supplies and other charges 151,327 151,327 221,095
- Total municipal center 173,475 173,260 215 273,095
Public works:
- Code enforcement-
Personal services 125,215 125,215 146,478
Supplies and other charges 48,508 41,754 6,754 40,625
173,723 166,969 6,754 187,103
Planning-
Personal services 258,826 258,826 141,741
Supplies and other charges 80,121 58,411 21,710 89,286
338,947 317,237 21,710 231,027
Engineering -
Personal services 351,402 332,330 19,072 164,038
-
Supplies and other charges 30,314 27,043 3,271 31,738
381,716 359,373 22,343 195,776
(Continued)
69
Exhibit B-4 ' '
Continued
CITY OF FRIDLEY. MINNESOTA
GENERAL FUND
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL -
Year Ended December 31, 1990
With Comparative Actual Amounts for Year Ended December 31, 1989
1990
Variance
Favorable 1989 -
Budget Actual (Unfavorable) Actual
Public works and Parks(continued):
Personal services $965,909 $965,909 $ $938,349 -
Supplies and other charges 714,552 641,884 72,668 669,948
1,680,461 1,607,793 72,668 1,608,297
Total public works 2,574,847 2,451,372 123,475 2,222,203
Naturalist and Recreation: .„
Naturalist-
Personal services 149,346 149,303 43 142,454
Supplies and other charges 58,883 54,654 4,229 49,802 .,.
208,229 203,957 4,272 192,256
Recreation -
Personal services 327,917 304,460 23,457 295,676
Supplies and other charges 138,289 . 133,015 5,274 140,465
466,206 437,475 28,731 436,141
Total recreation and naturalist 674,435 641,432 33,003 628,397
Reserve for contingency- 297,000 297,000
Capital outlay expenditures- -
City manager 1,300 1,300
Accounting 222,421 11,098 211,323 410
Police 103,435 100,772 2,663 116,716 -
Fire 36,596 33,943 2,653 26,806
Civil defense 3,634 3,118 516 3,968
Municipal center 6,732 340 6,392 18,728 -
Code enforcement 647
Planning 1,058 1,058 1,449
Engineering 17,215 15,201 2,014 -
Public works 196,005 175,342 20,663 283,432
Naturalist 15,537 6,865 8,672 26,334
Recreation 8,568 7,217 1,351 7,231
Total capital outlay 612,501 354,954 257,547 485,721
Total expenditures 8,968,778 8,063,432 905,346 7,761,668
(Continued)
70
Exhibit B-4
Continued
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL
Year Ended December 31, 1990
With Comparative Actual Amounts for Year Ended December 31, 1989
1990
Variance
Favorable 1989
Budget Actual (Unfavorable) Actual
Other financing uses:
-� Operating transfers out-
Capital Improvement Fund $5,948 $5,948 $ $514,949
Special Assessment Capital
Projects Fund 90,155
Total other financing uses 5,948 5,948 605,104
Total expenditures and other
financing uses $8,974,726 $8,069,380 $905,346 $8,366,772
71
SPECIAL REVENUE FUNDS
Special Revenue nue Funds are used to account for revenues derived from specific taxes or other earmarked
revenue sources. They are usually required by statute, charter provision or local ordinance to finance
particular governmental functions or activities.
Cable TV Fund
This fund receives revenues from the issuance of a franchise agreement with the cable TV provider.
These revenues are used for the operation and maintenance of a government access channel.
Grant Management Fund
This fund administers grants received from a variety of intergovernmental agencies. In most cases, grant
funds are provided on a reimbursement basis following proper documentation of expenditures, however,
in some cases the money is provided in advance to be spent on specific activities outlined in the grant.
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.
1
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December 31, 1990
With Comparative Totals for December 31, 1989
—
Cable Grant HRA
TV Management Reimbursement
Assets
Cash and cash equivalents $66,687 $ $
Investments 20,770
Accounts receivable 20,409 228
Due from other funds 1,252
Due from other governments 89,156
Total assets $107,866 $89,384 $1,252
Liabilities and Fund Balance —
Liabilities:
Advance from city's general account $ $70,670 $160 —
Accounts payable 10,238 16,507 872
Deposits payable 10,000
Salaries payable 575 1,033 —
Due to other funds 220
Total liabilities 20,813 88,210 1,252
Fund balance:
Unreserved -
Designated for susequent —
year's expenditures 6,317 1,174
Undesignated 80,736
Total fund balance 87,053 1,174 0 —
Total liabilities and
fund balance $107,866 $89,384 $1,252 .,
74
Exhibit C-1
Totals
1990 1989
_ $66,687 $
20,770 66,344
20,637 18,265
1,252 10,374
89,156 33,588
$198,502 $128,571
$70,830 $20,539
27,617 28,901
10,000 10,000
-„ 1,608 4,070
220
110,275 63,510
7,491 10,791
80,736 54,270
88,227 65,061
$198,502 $128,571
75
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Year Ended December 31, 1990
With Comparative Totals for Year Ended December 31, 1989
Cable Grant HRA
TV Management Reimbursement
Revenues:
Licenses and permits $74,825 $ $ —
Intergovernmental revenue 267,744 57,197
Interest on investments 5,802
Miscellaneous 600
Total revenues 80,627 268,344 57,197
Expenditures:
Current-
General government 53,044 217,519 57,197
Capital outlay 3,992 51,250
Total expenditures 57,036 268,769 57,197
Excess(deficiency)of revenues
over expenditures 23,591 (425) 0
Other financing (uses):
Operating transfers out
Total other financing(uses) 0 0 0
—
Excess(deficiency) of revenues
over expenditures and other
financing uses 23,591 (425)
Fund balance January 1 63,462 1,599
Residual equity transfer out
Fund balance December 31 $87,053 $1,174 $0
76
Exhibit C-2
Totals
1990 1989
$74,825 $66,024
324,941 1,492,629
5,802 162,745
600 15
406,168 1,721,413
327,760 327,232
55,242 581
383,002 327,813
23,166 1,393,600
(249,591)
0 (249,591)
,.., 23,166 1,144,009
65,061 1,495,807
(2,574,755)
$88,227 $65,061
77
Exhibit C-3 "-
CITY OF FRIDLEY. MINNESOTA —
CABLE TV SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEET
December 31, 1990 and 1989 --
1990 1989 —
Assets
Cash and cash equivalents $66,687 $10,000
Investments 20,770 56,344
Accounts receivable 20,409 18,265 -,
Total assets $107,866 $84,609
Liabilities and Fund Balance
Liabilities:
Accounts payable $10,238 $10,425
Deposits payable 10,000 10,000
Salaries payable 575 722
Total liabilities 20,813 21,147
Fund balance:
Unreserved -
Designated for subsequent year's expenditures 6,317 9,192
Undesignated 80,736 54,270
Total fund balance 87,053 63,462
Total liabilities and fund balance $107,866 $84,609
78
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, 1990
With Comparative Amounts for Year Ended December 31, 1989
_ 1990
Variance
Favorable 1989
Budget Actual (Unfavorable) Actual
Revenues:
Licenses-franchise fee $68,000 $74,825 $6,825 $66,024
Interest on investments 2,000 5,802 3,802 3,815
Miscellaneous 15
Total revenues 70,000 80,627 10,627 69,854
Expenditures:
Current
General government-
Personal services 25,714 9,798 15,916 22,957
Supplies and other charges 48,711 43,246 5,465 38,686
Capital outlay 4,000 3,992 8 581
Total expenditures 78,425 57,036 21,389 62,224
Excess(deficiency)of revenues
over expenditures (8,425) 23,591 32,016 7,630
Fund balance January 1 63,462 63,462 55,832
Fund balance December 31 $55,037 $87,053 $0 $63,462
79
Exhibit C-5 —
CITY OF FRIDLEY, MINNESOTA
GRANT MANAGEMENT SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEET
December 31, 1990 and 1989
1990 1989
Assets
—
Accounts receivable $228 $
Due from other goverments 89,156 33,588
Total assets $89,384 $33,588
Liabilities and Fund Balance
Liabilities:
Advance from city's general account $70,670 $17,029
Accounts payable 16,507 13,783
Salaries payable 1,033 1,177
Total liabilities 88,210 31,989
Fund balance:
Unreserved -
Designated for subsequent year's expenditures 1,174 1,599
Total liabilities and fund balance $89,384 $33,588
80
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, 1990
With Comparative Amounts for Year Ended December 31, 1989
1990
Variance
Favorable 1989
Budget Actual (Unfavorable) Actual
Revenues:
Intergovernmental revenue -
Federal $172,901 $149,468 ($23,433) $81,647
State 47,097 118,276 71,179 30,694
Donations 100 100
Miscellaneous 500 500
Total revenues 219,998 268,344 48,346 112,341
Expenditures:
Current
_ General government-
Personal services 34,954 41,196 (6,242) 42,674
Supplies and other charges 80,044 176,323 (96,279) 68,666
Capital outlay 105,000 51,250 53,750
Total expenditures 219,998 268,769 (48,771) 111,340
Excess(deficiency)of revenues
over expenditures and other
financing sources (425) (425) 1,001
Fund balance January 1 1,599 1,599 598
Fund balance December 31 $1,599 $1,174 ($425) $1,599
81
Exhibit C-7
CITY OF FRIDLEY, MINNESOTA
HRA REIMBURSEMENT SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEET
December 31, 1990 and 1989 _
1990 1989
Assets
Due from other funds $1,252 $10,374
Liabilities and Fund Balance
Liabilities:
Advance from city's general account $160 $3,510
Accounts payable 872 4,693
Salaries payable 2,171 —
Due to other funds 220
Total liabilities 1,252 10,374
Fund balance:
Unreserved - undesignated
Total liabilities and fund balance $1,252 $10,374
82
Exhibit C-8
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, 1990
With Comparative Amounts for Year Ended December 31, 1989
1990
�- Variance
Favorable 1989
Budget Actual (Unfavorable) Actual
Revenues:
Intergovernmental revenue -
— Housing Redevelopment Authority $57,197 $57,197 $ $154,249
Expenditures:
Current
General government-
Personal services 74,810
Supplies and other charges 57,197 57,197 79,439
Total expenditures 57,197 57,197 0 154,249
Excess of revenues over
expenditures 0 0 0
— Fund balance January 1 0 0 0
Fund balance December 31 $0 $0 $0 $0
83
•
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 be benefited from such improvements.
HRA 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. 1990
.. With Comparative Totals for December 31, 1989
-' Special Totals
Assessment HRA 1990 1989
Assets
Deposits with trustee $ $ $ $11,576,900
Investments 9,933,205 510,354 10,443,559 11,767,188
Receivables:
Special Assessments-
— Unremitted 1,544 1,544 13,448
Delinquents 143,642 143,642 161,179
Deferred 3,234,827 3,234,827 2,374,263
Total assets $13,313,218 $510,354 $13,823,572 $25,892,978
Liabilities and Fund Balance
Liabilities:
Accounts payable $ $ $ $2,596
"- Deposits paybale 26,350 26,350
Deferred revenue 3,378,468 3,378,468 2,535,442
Total liabilities 3,404,818 0 3,404,818 2,538,038
Fund balance:
Reserved for debt service 2,942,134 510,354 3,452,488 16,907,951
Unreserved - undesignated 6,966,266 6,966,266 6,446,989
Total fund balance 9,908,400 510,354 10,418,754 23,354,940
-' Total liabilities and fund balance $13,313,218 $510,354 $13,823,572 $25,892,978
85
Exhibit D-2 -'
CITY OF FRIDLEY. MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
Year Ended December 31. 1990
With Comparative Totals for Year Ended December 31, 1989
Special Totals
Assessment HRA 1990 1989
Revenues:
Special Assessments $630,779 $ $630,779 $908,580
Interest on investments 775,380 37,596 812,976 756,971 —
Total revenues 1,406,159 37,596 1,443,755 1,665,551
Expenditures:
Debt service -
Principal retirement 3,280,000 11,440,000 14,720,000 1,640,500
Interest and fiscal charges 235,749 749,765 985,514 1,540,919 —
Refunding bond issuance costs 83,655 83,655
Total expenditures 3,515,749 12,273,420 15,789,169 3,181,419
Excess(deficiency)of revenues
over expenditures (2,109,590) (12,235,824) (14,345,414) (1,515,868)
Other financing sources(uses):
Operating transfers in (out)-
Proceeds of Refunding Bonds 9,394,489 9,394,489
HRA Capital Projects Fund 1,272,719 1,272,719 1,531,220
Payment to Refunded Bond Escrow Agent (9,257,980) (9,257,980)
Total other financing sources 0 1,409,228 1,409,228 1,531,220
Excess(deficiency)of revenues and
other financing sources over -•
expenditures (2,109,590) (10,826,596) (12,936,186) 15,352
Fund balance January 1 12,017,990 11,336,950 23,354,940 23,339,588
Fund balance December 31 $9,908,400 $510,354 $10,418,754 $23,354,940
86
•
CAPITAL PROJECTS 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.
Civic Center Improvement Fund
This fund was established to account for the revenues and expenditures associated with the remodeling
of the Fridley Civic.Center.
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 which are to be paid for primarily by the
benefited property owner.
HRA Fund
This fund receives revenues from general property taxes in the form of tax increment and also from land
sale proceeds. A board of commissioners is appointed by the City Council and they use these funds to
purchase land in the City of Fridley for resale to developers of commercial facilities.
CITY OF FRIDLEY, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 31, 1990
With Comparative Totals for December 31, 1989
Civic
Capital Center Special
Improvements Improvements Assessments
Assets
Cash and cash equivalents $ $ $
Investments 6,984,675 286,250
Receivables:
Accounts
Taxes-
Unremitted 553
Delinquent 6,021
Specials- '^
Unremitted
Delinquent 1,468
Deferred 117,818
Mortgage-
Current
Delinquent '^
Deferred
Interest
Due from other funds
Total assets $6,991,249 $0 $405,536
Liabilities and Fund Balance
Liabilities:
Advance from city's general account $34,201 $ $1,264,499
Accounts payable 225
Deposits payable 86,688
Contracts payable 132,279 —
Salaries payable
Deferred revenue 6,021 119,286
Due to other funds
Due to other governments 35,000
Total liabilities 172,726 0 1,505,473
—
Fund balance:
Reserved for encumbrances 273,027
Reserved for construction
Unreserved-
Designated for fixed asset replacement 1,827,593
Designated for park improvements 773,754 _
Designated for street improvements 3,944,149
Undesignated (1,099,937)
Total fund balance 6,818,523 0 (1,099,937) _
Total liabilities and fund balance $6,991,249 $0 $405,536
88
Exhibit E-1
Totals
HRA 1990 1989,
$1,185,085 $1,185,085 $700
4,026,014 11,296,939 13,678,361
11,275 11,275 800
8,765 9,318 21,069
326,462 .332,483 641,654
45
1,468 2,200
117,818 129,592
4,000 4,000
"- 7,960 7,960
982,000 982,000 990,000
95,915 95,915 197,903
220 220 48,519
$6,647,696 $14,044,481 $15,710,843
$ $1,298,700 $1,655,151
3,748 3,973 50,589
86,688 98,743
132,279 452,651
783
1,320,423 1,445,730 1,763,446
38,704 38,704 62,548
108,473 143,473 305,919
1,471,348 3,149,547 4,389,830
273,027
5,176,348 5,176,348 5,510,028
1,827,593 2,140,970
_ 773,754 806,988
3,944,149 3,905,781
(1,099,937) (1,042,754)
5,176,348 10,894,934 11,321,013
$6,647,696 $14,044,481 $15,710,843
89
CITY OF FRIDLEY, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND
CHANGES IN FUND BALANCE
Year Ended December 31. 1990
With Comparative Totals for Year Ended December 31, 1989
Civic
Capital Center Special
Improvements Improvements Assessments
Revenues:
Taxes-
Tax increment $ $ $
Current ad valorem taxes 72,726
Delinquent ad valorem taxes 1,375
Special assessments 139,189
Total taxes 74,101 0 139,189
Intergovernmental revenue -
State credits 14,344
State grant
State aid for construction 77,504
Other 86,916
Total intergovernmental revenue 91,848 0 86,916
Interest on investments 580,664 13,363 ..
Miscellaneous revenue -
Rental income
Donations 19,291
Other 3,593 4,558
Total miscellaneous revenue 19,291 3,593 4,558
Total revenues 765,904 3,593 244,026 —
(Continued)
90
— Exhibit E-2
Totals
HRA 1990 1989
$2,510,294 $2,510,294 $2,342,665
72,726 71,346
1,375 758
_ 139,189 1,088,472
2,510,294 2,723,584 3,503,241
14,344 30,573
1,100
77,504
86,916
0 178,764 31,673
333,616 927,643 867,066
66,147 66,147 29,050
19,291 174,146
2,785 10,936 10,068
—
68,932 96,374 213,264
2,912,842 3,926,365 4,615,244
—
91
—
CITY OF FRIDLEY, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND _
CHANGES IN FUND BALANCE(Continued)
Year Ended December 31, 1990
With Comparative Totals for Year Ended December 31, 1989 —
Civic
Capital Center Special
Improvements Improvements Assessments
Expenditures:
Current-
General government $16,094 $1,377 $
Public works 141,266
Capital outlay 547,008 16,253 371,627
Total expenditures 704,368 17,630 371,627
Excess(deficiency)of revenues
over expenditures 61,536 (14,037) (127,601) ,^
Other financing sources(uses):
Operating transfers in (out) -
General Fund 5,948 (17,873)
Municipal State Aid Fund
HRA Debt Service Fund
Capital Improvement Fund 88,291
Fire Buildings
Special Assessment Capital Projects Fund (88,291) _
Public Utilities fund
Total other financing sources(uses) (82,343) 0 70,418
Excess(deficiency)of revenues and other
financing sources over expenditures
and other financing uses (20,807) (14,037) (57,183) ._
Fund balance January 1 6,853,739 (372) (1,042,754)
Residual equity transfers in(out) (14,409) 14,409
Fund balance(deficit)December 31 $6,818,523 $0 ($1,099,937)
92
Exhibit E-2
Continued
Totals
HRA 1990 1989
$691,494 $708,965 $564,536
$141,266
1,282,681 $2,217,569 5,933,832
1,974,175 3,067,800 6,498,368
938,667 858,565 (1,883,124)
(11,925) 603,705
110,731
(1,272,719) (1,272,719) (1,531,220)
88,291 260,656
(246,638)
.... (88,291) (14,018)
(17,177)
(1,272,719) (1,284,644) (833,961)
(334,052) (426,079) (2,717,085)
5,510,400 11,321,013 11,463,343
2,574,755
$5,176,348 $10,894,934 $11,321,013
93
ENTERPRISE FUNDS
Enterprise Funds are used to account for the operations of self-supporting governmental activities which
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 two 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, 1990
With Comparative Totals for December 31, 1989
-
Public Totals
Liquor Utilities 1990 1989
Assets
Current Assets:
Cash and cash equivalents $565,909 $420,935 $986,844 $1,736,728
- Investments 3,621,077 3,621,077 3,621,077
Accounts receivable 689,061 689,061 727,701
Due from other funds 3,655
- Due from other governments 28,090 28,090 17,516
Inventories, at cost 313,033 1,875 314,908 273,926
Prepaid items 19,571 127,779 147,350 144,298
- Total current assets 898,513 4,888,817 5,787,330 6,524,901
Long-term receivable -
Metro Waste Control Commission 210,424 210,424 230,145
Property and equipment, at cost:
Property and equipment 434,252 24,108,763 24,543,015 22,990,177
- Less: accumulated depreciation (221,780) (6,499,337) (6,721,117) (6,217,442)
Net property and equipment 212,472 17,609,426 17,821,898 16,772,735
-- Total assets $1,110,985 $22,708,667 $23,819,652 $23,527,781
Liabilities and Fund Equity
Current liabilities:
- Accounts payable $76,039 $47,569 $123,608 $174,536
Contracts payable 54,821 54,821 11,092
Salaries payable 10,609 16,369 26,978 30,443
- Due to other governments 26,823 9,154 35,977 94,474
Total current liabilities 113,471 127,913 241,384 310,545
- Fund equity:
Contributed capital 12,858,573 12,858,573 13,047,497
Retained earnings-
-- Reserved 942,529 942,529 1,756,113
Unreserved 997,514 8,779,652 9,777,166 8,413,626
Total retained earnings 997,514 9,722,181 10,719,695 10,169,739
-
Total fund equity 997,514 22,580,754 23,578,268 23,217,236
Total liabilities and fund equity $1,110,985 $22,708,667 $23,819,652 $23,527,781
95
Exhibit F-2
-
CITY OF FRIDLEY, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES -
AND CHANGES IN RETAINED EARNINGS
Year Ended December 31, 1990
With Comparative Totals for Year Ended December 31, 1989
Public Totals -
Liquor Utilites 1990 1989
Sales and cost of sales:
Sales $2,492,863 $ $2,492,863 $2,382,991
Cost of sales 2,002,681 2,002,681 1,929,794
Gross profit 490,182 0 490,182 453,197
Operating revenues:
Water sales and sewer rents 2,926,154 2,926,154 2,767,449
Other 123,504 123,504 111,731
Total operating revenues 0 3,049,658 3,049,658 2,879,180
Operating expenses:
Personal services 281,623 624,915 906,538 860,295
Supplies and other charges-
Disposal charges 1,471,997 1,471,997 1,382,052
Other 132,911 599,329 732,240 797,249
Depreciation 16,271 516,986 533,257 518,917
Total operating expenses 430,805 3,213,227 3,644,032 3,558,513
Operating income(loss) 59,377 (163,569) (104,192) (226,136)
Non-operating revenues(expenses):
Interest on investments 50,819 379,126 429,945 378,084
Debt service
Loss on reclassification of fixed assets (741) (741) (761)
Other 4,017 4,017 3,536
Total non-operating
revenues(expenses) 54,095 379,126 433,221 380,859
-
Income before operating transfers 113,472 215,557 329,029 154,723
Operating transfers in (out):
General Fund (115,000) (115,000) (10,000)
Special Assessment Capital Projects Fund 17,177
Total operating transfers (115,000) 0 (115,000) 7,177
Net income (loss) (1,528) 215,557 214,029 161,900
Credit arising from transfer of depreciation
on contributed capital 335,927 335,927 326,605
-
Retained earnings January 1 999,042 9,170,697 10,169,739 9,681,234
Retained earnings December 31 $997,514 $9,722,181 $10,719,695 $10,169,739
96
Exhibit F-3
-- CITY OF FRIDLEY. MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
- Year Ended December 31, 1990
With Comparative Totals for Year Ended December 31, 1989
Public Totals
Liquor Utilities 1990 1989
- Cash flows from operating activities:
Operating income(loss) $59,377 ($163,569) ($104,192) ($226,136)
Adjustments to reconcile operating income(loss)
- to net cash flows from operating activities:
Depreciation 16,271 516,986 533,257 518,917
Other non-operating revenue 4,017 4,017 3,536
- Operating transfers to General Fund (115,000) (115,000) (10,000)
Operating transfers from Special Assessment
Capital Projects Fund 17,177
- Changes in assets and liabilities:
Decrease(increase) in receivables 47,787 47,787 (86,139)
Decrease(increase) in due from other funds 3,655 3,655 (3,655)
- Decrease(increase) in inventories (40,090) (892) (40,982) 92,376
Decrease(increase) in prepaid items (1,789) (1,263) (3,052) (15,894)
Increase(decrease) in payables (1,857) (67,305) (69,162) 83,693
Net cash flows from operating activities (79,071) 335,399 256,328 373,875
- Cash flows from non-capital financing activities:
Interest received from MWCC 9,449 9,449 10,122
- Cash flows from capital and related financing activities:
Acquisition and construction of fixed assets (1,436,157) (1,436,157) (328,649)
- Cash flows from investing activities:
Interest on investments 50,819 369,677 420,496 367,962
- Net increase(decrease)in cash and cash equivalents (28,252) (721,632) (749,884) 423,310
Cash and cash equivalents-January 1 594,161 1,142,567 1,736,728 1,313,418
Cash and cash equivalents-December 31 $565,909 $420,935 $986,844 $1,736,728
Non-cash investing. capital and financing activities:
System assets of$147,003 were contributed by the Capital Projects Special
Assessment Fund to the Public Utility Enterprise Fund in 1990.
97
—
Exhibit F-4
CITY OF FRIDLEY, MINNESOTA —
LIQUOR ENTERPRISE FUND
COMPARATIVE BALANCE SHEET
December 31, 1990 and 1989 ._
1990 1989 —
Assets
Current Assets:
Cash and cash equivalents $565,909 $594,161
Inventories, at cost 313,033 272,943 —
Prepaid items 19,571 17,782
Total current assets 898,513 884,886
Property and equipment, at cost:
Land 66,961 66,961
Buildings 174,116 174,116
Improvements other than building 18,677 18,677
Machinery and equipment 174,498 204,820
434,252 464,574 _.,
Less: accumulated depreciation (221,780) (235,091)
Net property and equipment 212,472 229,483
Total assets $1,110,985 $1,114,369
Liabilities and Fund Equity
Current Liabilities:
Accounts payable $76,039 $83,166 -
Salaries payable 10,609 9,987
Due to other governments 26,823 22,174
Total current liabilities 113,471 115,327 -,
Fund equity:
Retained earnings- unreserved 997,514 999,042
Total current liabilities and fund equity $1,110,985 $1,114,369
98
Exhibit F-5
CITY OF FRIDLEY, MINNESOTA
LIQUOR ENTERPRISE FUND
COMPARATIVE STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN RETAINED EARNINGS
Years Ended December 31, 1990 and 1989
1990 1989
Sales and cost of sales:
Sales $2,492,863 $2,382,991
Cost of sales 2,002,681 1,929,794
Gross profit 490,182 453,197
Operating expenses:
_ Selling:
Personal services 162,209 165,943
Supplies and other charges 1,154 21,897
Total selling expenses 163,363 187,840
Overhead:
Supplies and other charges 123,163 100,243
Depreciation 16,271 24,124
Total overhead expense 139,434 124,367
Administrative:
Personal services 119,414 96,944
Supplies and other charges 8,594 15,127
Total adminstrative expense 128,008 112,071
Total operating expenses 430,805 424,278
Operating income 59,377 28,919
Non-operating revenues:
Interest on investments 50,819 36,902
Loss on reclassification of fixed assets (741) (136)
Other 4,017 3,536
Total non-operating revenues 54,095 40,302
Income before operating transfers
113,472 69,221
Operating transfers out:
General Fund (115,000) (10,000)
Total operating transfers (115,000) (10,000)
Net income (loss) (1,528) 59,221
Retained earnings January 1 999,042 939,821
Retained earnings December 31 $997,514 $999,042
99
Exhibit F-6
CITY OF FRIDLEY, MINNESOTA —
LIQUOR ENTERPRISE FUND
COMPARATIVE STATEMENT OF CASH FLOWS
Years Ended December 31, 1990 and 1989
1990 1989 —
Cash flows from operating activities:
Operating income $59,377 $28,919 —
Adjustments to reconcile operating income (loss)to net
cash flows from operating activities:
Depreciation 16,271 24,124
Other non-operating revenue 4,017 3,536
Operating transfers out to General Fund (115,000) (10,000)
Changes in assets and liabilities: —
Decrease (increase) in inventories (40,090) 89,466
Decrease(increase) in prepaid items (1,789) 209
Increases(decrease) in payables (1,857) (18,366)
Net cash flows from operating activities (79,071) 117,888
Cash flows from investing activities:
Interest on investments 50,819 36,902
Net increase(decrease) in cash and cash equivalents (28,252) 154,790
Cash and cash equivalents-January 1 594,161 439,371 —
Cash and cash equivalents-December 31 $565,909 $594,161
100
CITY OF FRIDLEY, MINNESOTA Exhibit F-7
PUBLIC UTILITY ENTERPRISE FUND
COMPARATIVE BALANCE SHEET
December 31, 1990 and 1989
1990 1989
Assets
Current assets:
Cash and cash equivalents $420,935 $1,142,567
-- Investments 3,621,077 3,621,077
Accounts receivable 689,061 727,701
Due from other funds 3,655
— Due from other governments 28,090 17,516
Inventories, at cost 1,875 983
Prepaid items 127,779 126,516
— Total current assets 4,888,817 5,640,015
Long-term receivable - Metropolitan
— Waste Control Commission 210,424 230,145
Property and equipment, at cost:
— Land 154,531 154,531
Buildings 1,556,891 1,524,072
Improvements other than building 3,211,699 1,883,218
— Machinery and equipment 2,183,336 2,181,855
Water and sewer lines 17,002,306 16,781,927
24,108,763 22,525,603
— Less: accumulated depreciation (6,499,337) (5,982,351)
Net property and equipment 17,609,426 16,543,252
-- Total assets $22,708,667 $22,413,412
Liabilities and Fund Equity
Current liabilities:
—
Accounts payable $47,569 $91,370
Contracts payable 54,821 11,092
Salaries payable 16,369 20,456
—
Due to other governments 9,154 72,300
Total liabilities 127,913 195,218
— Fund Equity:
Contributed capital 12,858,573 13,047,497
Retained earnings:
Reserved 942,529 1,756,113
Unreserved 8,779,652 7,414,584
Total retained earnings 9,722,181 9,170,697
Total fund equity 22,580,754 22,218,194
Total liabilities and fund equity $22,708,667 $22,413,412
101
Exhibit F-8
CITY OF FRIDLEY, MINNESOTA
PUBLIC UTILITY ENTERPRISE FUND —.
COMPARATIVE STATEMENT OF REVENUES.
EXPENSES AND CHANGES IN RETAINED EARNINGS
Years Ended December 31, 1990 and 1989 --
1990 1989 —
Operating Revenues:
Water sales and sewer rents $2,926,154 $2,767,449 —
Other 123,504 111,731
Total Operating Revenues 3,049,658 2,879,180
Operating Expenses:
Personal services 624,915 597,408
Supplies and other charges- —
Disposal charges 1,471,997 1,382,052
Other 599,329 659,982
Depreciation: —
Purchased assets 181,059 168,188
Contributed assets 335,927 326,605
Total Operating Expenses 3,213,227 3,134,235
Operating loss (163,569) (255,055)
Non-Operating Revenues(Expenses):
Interest on Investments 379,126 341,182
Loss on reclassification (625)
Total Non-Operating Revenues
(Expenses) 379,126 340,557
Income before operating transfers 215,557 85,502
Operating transfers from: --
Special Assessment Capital Projects Fund 17,177
Total operating transfers 0 17,177
Net Income 215,557 102,679
Credit arising from transfer of depreciation —
on contributed capital 335,927 326,605
7
Retained Earnings January 1 9,170,697 8,741,413
Retained Earnings December 31 $9,722,181 $9,170,697
102
Exhibit F-9
CITY OF FRIDLEY. MINNESOTA
-� PUBLIC UTILITY ENTERPRISE FUND
COMPARATIVE STATEMENT OF CASH FLOWS
Years Ended December 31, 1990 and 1989
1990 1989
Cash flows from operating activities:
Operating income(loss) ($163,569) ($255,055)
Adjustment to reconcile operating income (loss)to net
cash flows from operating activities:
Depreciation 516,986 494,793
Operating transfers from Special Assessment
Capital Projects Fund 17,177
Changes in assets and liabilities:
Decrease (increase) in receivables 47,787 (86,139)
Decrease(increase) in due from other funds 3,655 (3,655)
Decrease(increase) in inventories (892) 2,910
Decrease (increase) in prepaid items (1,263) (16,103)
Increase (decrease) in payables (67,305) 102,059
Net cash flows from operating activities 335,399 255,987
Cash flows from non-capital financing activities:
Interest received from MWCC 9,449 10,122
Cash flows from capital and related financing activities:
Acquisition and construction of fixed assets (1,436,157) (328,649)
Cash flows from investing activities:
Interest on investments 369,677 331,060
Net increase(decrease)in cash and cash equivalents (721,632) 268,520
Cash and cash equivalents-January 1 1,142,567 874,047
Cash and cash equivalents- December 31 $420,935 $1,142,567
Non-cash investing. capital and financing activities:
System assets of$147,003 were contributed by the Capital Projects Special
Assessment Fund to the Public Utility Enterprise Fund in 1990.
103
•
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 the City of
Fridley employees.
Self Insurance Fund
This fund is used to account for all revenues and expenditures associated with the $50,000 deductible
in the City general liability policy.
Exhibit G-1
•
CITY OF FRIDLEY, MINNESOTA
_ INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 1990
With Comparative Totals for December 31, 1989
Employee Self Totals
Benefits Insurance 1990 1989
Assets
_ Current assets:
Cash and cash equivalents $1,401,739 $1,054,630 $2,456,369 $1,503,372
Accounts receivable 1,269 2,318 3,587 305
Prepaid items 21,073
Total assets $1,403,008 $1,056,948 $2,459,956 $1,524,750
Liabilities and Fund Equity
Current liabilities:
Accounts payable $ $ $ $2,875
Compensated absences payable 992,875 2,873 995,748 1,041,671
Total liabilities 992,875 2,873 995,748 1,044,546
_ Fund equity:
Retained earnings- reserved 410,133 1,054,075 1,464,208 480,204
Total fund equity 410,133 1,054,075 1,464,208 480,204
Total liabilities and fund equity $1,403,008 $1,056,948 $2,459,956 $1,524,750
105 •
Exhibit G-2 "'
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN RETAINED EARNINGS
Year Ended December 31, 1990
With Comparative Totals for Year Ended December 31, 1989
Employee Self Totals
Benefits Insurance 1990 1989
Operating revenues:
Charges for services $252,799 $ $252,799 $325,803
Operating expenses:
Personal services 45,069 72,889 117,958 402,243
Supplies and other charges 35,402 35,402 73,303
Benefit payments 252,799 252,799 229,106
Depreciation 41,064
Capital outlay _ 12,962
Total operating expenses 297,868 108,291 406,159 758,678
Operating income(loss) (45,069) (108,291) (153,360) (432,875)
Non operating revenues:
Interest on investments 113,618 27,134 140,752 139,176
Insurance reimbursement 57,721 57,721
Loss on reclassification of assets (310)
Other 70,626
Total non-operating revenues(expenses) 113,618 84,855 198,473 209,492
Net income(loss)before operating
transfers 68,549 (23,436) 45,113 (223,383) -
Operating transfers out:
General Fund (61,109) (61,109)
Total operating transfers 0 (61,109) (61,109) 0 -
Net income(loss) 68,549 (84,545) (15,996) (223,383)
Retained earnings January 1 341,584 138,620 480,204 1,352,594
Residual Equity transfer in(out) 1,000,000 1,000,000 (649,007) -
Retained earnings December 31 $410,133 $1,054,075 $1,464,208 $480,204
106
Exhibit G-3
CITY OF FRIDLEY. MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
Year Ended December 31, 1990
With Comparative Totals for Year Ended December 31, 1989
Employee Self Totals
Benefits Insurance 1990 1989
Cash flows from operating activities:
Operating income (loss) ($45,069) ($108,291) ($153,360) ($400,652)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Insurance reimbursement 57,721 57,721 70,576
Operating transfer out (61,109) (61,109)
Changes in assets and liabilities:
Decrease(increase) in receivables (1,269) (2,013) (3,282) 705
Decrease(increase) in prepaid items 21,073 21,073 (21,073)
Increase(decrease) in payables (48,796) 2,864 (45,932) 252,071
— Net cash flows from operating activities (74,061) (110,828) (184,889) (98,373)
Cash flows from non-capital financing activities:
Residual equity transfer in from General Fund 1,000,000 1,000,000
Cash flows from investing activities:
Interest on investments 113,618 27,134 140,752 102,221
Net increase in cash and cash equivalents 39,557 916,306 955,863 3,848
Cash and cash equivalents-January 1 1,362,182 138,324 1,500,506 1,499,524
Cash and cash equivalents-December 31 $1,401,739 $1,054,630 $2,456,369 $1,503,372
107
Exhibit G-4 "'
CITY OF FRIDLEY, MINNESOTA —
EMPLOYEE BENEFITS INTERNAL SERVICE FUND
COMPARATIVE BALANCE SHEET
—
December 31, 1990 and 1989
1990 1989
Assets
Cash and cash equivalents $1,401,739 $1,362,182
Accounts receivable 1,269
Prepaid items 21,073
Total assets $1,403,008 $1,383,255
Liability and Fund Equity
Current Liability:
Compensated absences payable $992,875 $1,041,671
Fund equity:
Retained earnings-
Reserved for employee benefits 410,133 341,584
Total current liability and fund equity $1,403,008 $1,383,255
108
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, 1990 and 1989
—
1990 1989
Operating revenues:
Charges for services $252,799 $273,965
Operating expenses:
General government-
- Personal services 45,069 401,644
Benefit payments 252,799 229,106
Total operating expenses 297,868 630,750
Operating income(loss) (45,069) (356,785)
Non-operating revenues:
Interest on investments 113,618 94,963
Total non-operating revenues 113,618 94,963
Net income(loss) 68,549 (261,822)
Retained earnings January 1 341,584 603,406
Retained earnings December 31 $410,133 $341,584
109
Exhibit G-6 —
CITY OF FRIDLEY, MINNESOTA —
EMPLOYEE BENEFITS INTERNAL SERVICE FUND
COMPARATIVE STATEMENT OF CASH FLOWS
Years Ended December 31, 1990 and 1989
1990 1989
Cash flows from operating activities:
Operating income (loss) ($45,069) ($356,785)
Adjustments to reconcile operating income (loss)to net
cash flows from operating activities:
Decrease(increase) in accounts receivable (1,269)
Decrease(increase) in prepaid expense 21,073 (21,073) —
Increase(decrease) in compensated absence payable (48,796) 252,873
Net cash flows from operating activities (74,061) (124,985)
Cash flows from investing activities:
Interest on investments 113,618 94,963
Net increase(decrease) in cash and cash equivalents 39,557 (30,022)
Cash and cash equivalents-January 1 1,362,182 1,392,204
Cash and cash equivalents-December 31 $1,401,739 $1,362,182
110
Exhibit G-7
CITY OF FRIDLEY, MINNESOTA
SELF INSURANCE INTERNAL SERVICE FUND
COMPARATIVE BALANCE SHEET
December 31, 1990 and 1989
1990 1989
Assets
Cash and cash equivalents $1,054,630 $138,324
Accounts receivable 2,318 305
Total assets $1,056,948 $138,629
Liability and Fund Equity
Current liability:
Accounts payable $2,873 $9
Fund equity:
Retained earnings-
Reserved for contingencies 1,054,075 138,620
Total fund equity 1,054,075 138,620
Total liability and fund equity $1,056,948 $138,629
111
Exhibit G-8 --
CITY OF FRIDLEY, MINNESOTA
SELF INSURANCE INTERNAL SERVICE FUND
COMPARATIVE STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN RETAINED EARNINGS —
Years Ended December 31, 1990 and 1989
1990 1989
Operating revenues:
Charges for services $ $
Operating expenses:
Personal services 72,889 599
Supplies and other charges 35,402 30,306
Capital outlay 12,962
Total operating expenses 108,291 43,867
Operating(loss) (108,291) (43,867)
Non-operating revenues:
Interest on investments 27,134 7,258
Insurance reimbursement 57,721 70,576
Total non-operating revenues 84,855 77,834 .�
Net income(loss)before operating transfers (23,436) 33,967
Operating transfers out:
General Fund (61,109)
Total operating transfers (61,109) 0 —
Net income(loss) (84,545) 33,967
Retained earnings January 1 138,620 104,653
Residual Equity transfer in 1,000,000
Retained earnings December 31 $1,054,075 $138,620 -�
112
•
Exhibit G-9
CITY OF FRIDLEY, MINNESOTA
SELF INSURANCE INTERNAL SERVICE FUND
COMPARATIVE STATEMENT OF CASH FLOWS
Years Ended December 31, 1990 and 1989
1990 1989
Cash flows from operating activities:
Operating income(loss) ($108,291) ($43,867)
Adjustments to reconcile operating income(loss)to net
cash flows from operating activities:
_ Insurance reimbursement 57,721 70,576
Operating transfer to General Fund (61,109)
Changes in assets and liabilities:
Decrease(increase) in receivables (2,013) 705
Increase(decrease) in accounts payable 2,864 (802)
Net cash flows from operating activities (110,828) 26,612
Cash flows from non-capital financing activities:
Residual equity transfer in from General Fund 1,000,000
Cash flows from investing activities:
Interest on investments 27,134 7,258
Net increase in cash and cash equivalents 916,306 33,870
Cash and cash equivalents-January 1 138,324 104,454
Cash and cash equivalents-December 31 $1,054,630 $138,324
113
„,...„.
L• .
. ,
r
,. .
i . . . .
• . ..
. ..._ . ,
. .. . . , . .. .
. ,
x: •
I: • . .
TRUST AND AGENCY FUNDS . - .
`T,.-ust and Agency Funds are used to account.for assets held by a government in a'trustee or
z anent capacity far irdi��iduals; ' rivatt-'organizations, other overnments br.oth:er funds.: :. .: ::.: ':::'.:-7;..,;..:.:2'!'?..,;',.:::
-
Expendable TrusttFFurid
`: The City of Fridley maintains only one Expendable"Trust Fund that is used to defray the. City - :.i
administrative costs assoriatf d'with the issuance,of industrial revenue development bonds.
Six t_ihes Watershed A gncy Fund - ; 1
:This fund was established to account•for the collection of taxes received from the County on ii
behalf of the Six Cities Watershed District..
Hotel/MP-tell AgenpyF�und
.... n of a three percent to that ha a r,.: ,: ':- '•-”�' .
.�:. . . .,. . ' ' Th.sfur7d•;nras estat�lis edty:accou. tfurahe;i:�all,ecttorto , pe„c. :f., x:. ., . • s.b. ert .:;:.: :.:....:....- ;:.: :,°_l,s�.., `u,�:
imposed oryalt the hotels and motels in the porth:suburban'area: The collection process, is .'.'1 4:,
administered lby the City on behalf of the North Metro Convention and Tourism Bureau whicir.wilf ,iMrl`
use the money'to provide inrorniation,to visitors-and create an awareness of the:facilities available.:;: ;: , -(
K. in this area. u• ,'
,
Deferred Compensation Agency Fund :.:: ,,:
(emu• ::...
' This fund accounts for deposits held in trust with.the:International C't Mana -ers Association'. :: .• • ::. `. ::�. .,,
(ICMA)on behalf of.the City;of,Fridley employees.:-:Employees:make pretax contributions to this: ,{; ,j,,. _Y:
i,.
organization throughout their careers which are used as a retirement'.benefiit. •- ,I-' , ss rf
t .. ,..,,. . ,. ,....: . . ,,,, :,... , . . , . , ,:, .:k .:: :::i ,., ;:: ' 0. .. ...• •' :',.. .::...;•:.; ::''t,"..1',-'4'r".. 1.tt '
s
s
•
ji
Exhibit H-1
CITY OF FRIDLEY, MINNESOTA
TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
December 31, 1990
With Comparative Totals for December 31, 1989
Expendable Agency Totals
Trust Funds 1990 1989
Assets
Cash and cash equivalents $65,810 $4,139 $69,949 $72,905
Receivables:
Accounts 4,269 4,269 2,048
Taxes-
Unremitted 9 9 77
Delinquent 1,297 1,297 751
Other assets 3,031,006 3,031,006 2,647,512
Total assets $65,810 $3,040,720 $3,106,530 $2,723,293
Liabilities and Fund Balance
Liabilities:
Accounts payable $ $1,488 $1,488 $2,683,961
Deposits payable 42,374 3,031,006 $3,073,380
Deferred revenue 1,297 1,297 751
Due to other governments 6,929 6,929 8,384
Total liabilities 42,374 3,040,720 3,083,094 2,693,096
Fund balance:
Unreserved - undesignated 23,436 23,436 30,197
Total liabilities and fund balance $65,810 $3,040,720 $3,106,530 $2,723,293
115
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, 1990 and 1989
1990 1989
Revenues:
Interest on investments $5,775 $4,872
Expenditures:
Current:
General government 3,109 -,
Excess of revenues over expenditures 2,666 4,872
Other financing uses:
Operating transfers out (9,427)
Total other financing uses (9,427) 0
Increase(deficiency)of revenues —
over expenditures and other
financing uses (6,761) 4,872
Fund balance, January 1 30,197 25,325
Fund balance, December 31 $23,436 $30,197
116
—
Exhibit H-3
CITY OF FRIDLEY, MINNESOTA
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
Year Ended December 31, 1990
Balance Balance
— January 1 Additions Deletions December 31
Assets
Cash and cash equivalents $6,259 $33,990 $36,110 $4,139
Receivables:
— Accounts 2,048 4,269 2,048 4,269
Taxes-
Unremitted 77 9 77 9
— Delinquent 751 801 255 1,297
Other assets 2,647,512 493,803 110,309 3,031,006
— Total Assets $2,656,647 $532,872 $148,799 $3,040,720
— Liabilities
Accounts payable $ $1,488 $ $1,488
— Deposits payable 2,647,512 493,803 110,309 3,031,006
Deferred revenue 751 801 255 1,297
Due to other governments 8,384 31,018 32,473 6,929
Total liabilities $2,656,647 $527,110 $143,037 $3,040,720
117
Exhibit H-4 ^
CITY OF FRIDLEY, MINNESOTA
SIX CITIES WATERSHED AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
Year Ended December 31, 1990
Balance Balance -
January 1 Additions Deletions December 31
Assets
Cash and cash equivalents $4,499 $5,193 $7,471 $2,221
Taxes receivable:
Unremitted 77 9 77 9
Delinquent 751 801 255 1,297
-
Total assets $5,327 $6,003 $7,803 $3,527
Liabilities
Accounts payable $ $1,488 $ $1,488
Due to other governments 4,576 3,834 742
Deferred revenue 751 801 255 1,297
-
Total liabilities $5,327 $2,289 $4,089 $3,527
CITY OF FRIDLEY, MINNESOTA
HOTEL/ MOTEL TAX AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES -
Year Ended December 31, 1990
Balance Balance
January 1 Additions Deletions December 31
Assets -
Cash and cash equivalents $1,760 $28,797 $28,639 $1,918
Accounts receivable 2,048 4,269 2,048 4,269
Total assets $3,808 $33,066 $30,687 $6,187
Liabilities
Due to other governments $3,808 $31,018 $28,639 $6,187
Total liabilities $3,808 $31,018 $28,639 $6,187
118
Exhibit H-5
CITY OF FRIDLEY. MINNESOTA
DEFERRED COMPENSATION AGENCY FUND
STATEMENT OF CHANGES IN ASSET AND LIABILITY
Year Ended December 31, 1990
Balance Balance
January 1 Additions Deletions December 31
Asset
Other assets-
Deferred compensation - at
market $2,647,512 $493,803 $110,309 $3,031,006
_ Liability
Deposits payable $2,647,512 $493,803 $110,309 $3,031,006
119
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 STATEMENT OF GENERAL FIXED ASSETS
December 31, 1990 and 1989
1990 1989
General fixed assets:
Land $1,976,302 $1,917,024
Building 4,510,618 4,412,051
Improvements other than building 15,328,066 13,228,165
Machinery and equipment 4,625,192 4,066,976
_ Construction in progress 1,785,883
Total general fixed assets $26,440,178 $25,410,099
Investment in general fixed assets from:
General obligation bonds 856,597 $856,597
Federal and state aid 1,682,960 1,682,960
General fund revenues 10,116,207 9,838,927
Special revenue fund revenues 1,388,362 173,405
Special assessments 9,552,502 10,606,725
Private gifts 764,675 747,514
Other sources 2,078,875 1,503,971
Total investment in general fixed assets $26,440,178 $25,410,099
121
Exhibit 1-2 "'
-
CITY OF FRIDLEY, MINNESOTA
SCHEDULE OF GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
-
December 31, 1990
Improvements Machinery -
Other than and
Total Land Buildings Buildings Equipment
Function and Activity
General government
City manager $25,357 $ $ $ $25,357
Cable TV 40,421 40,421
Accounting 49,360 49,360
Management Information Syst 329,278 5,990 323,288
Assessing 5,406 5,406
Elections 92,388 92,388
City Clerk/Records 1,116 1,116
Planning 146,822 124,804 22,018
Civic center 3,714,599 52,496 2,844,614 36,936 780,553
Total general government 4,404,747 177,300 2,844,614 42,926 1,339,907
Public safety
Public protection 657,620 158,682 498,938
Fire protection 1,413,815 59,106 497,922 98,413 758,374
Inspectional services 10,004 10,004
Civil defense 147,302 110,527 36,775
Total public safety 2,228,741 59,106 497,922 367,622 1,304,091
-
Public works
Engineering 76,839 76,839
Street improvements 11,434,936 4,426 11,430,510
Traffic signal 138,110 138,110
City garage 1,982,208 135,311 386,266 204,530 1,256,101
Parks 4,825,874 1,294,101 330,500 2,714,270 487,003
Total public works 18,457,967 1,433,838 716,766 14,487,420 1,819,943
Recreation/Naturalist -
Recreation 135,638 8,096 127,542
Naturalist 1,213,085 306,058 451,316 422,002 33,709
Total recreation/naturalist 1,348,723 306,058 451,316 430,098 161,251 -
Total general fixed assets
allocated to functions $26,440,178 $1,976,302 $4,510,618 $15,328,066 $4,625,192 -
122
•
Exhibit 1-3
CITY OF FRIDLEY, MINNESOTA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS-
BY FUNCTION AND ACTIVITY
- Year Ended December 31, 1990
- General Fixed General Fixed
Assets Assets
1/1/90 Additions Deletions 12/31/90
Function and Activity
- General government
City manager $25,357 $ $ $25,357
Cable TV 38,564 1,857 40,421
- Accounting 45,507 4,767 914 49,360
Management information services 346,203 2,400 19,325 329,278
Assessing 2,987 2,419 5,406
- Elections 15,132 77,256 92,388
City clerk/records 1,116 1,116
Planning 146,822 146,822
- Civic center 3,706,551 8,048 3,714,599
Total general government 4,327,123 97,863 20,239 4,404,747
- Public safety
Public protection 454,213 204,089 683 657,619
Fire protection 1,147,870 267,579 1,634 1,413,815
- Inspectional services 10,004 10,004
Civil defense 146,258 1,044 147,302
Total public safety 1,758,345 472,712 2,317 2,228,740
Public works
Engineering 46,430 34,526 4,117 76,839
- Street improvements 10,712,699 723,632 1,395 11,434,936
Traffic signal 138,243 133 138,110
City garage 1,826,288 171,991 16,070 1,982,209
- Parks 3,495,595 1,370,711 40,432 4,825,874
Total public works 16,219,255 2,300,860 62,147 18,457,968
- Recreation/Naturalist
Recreation 128,421 7,217 135,638
Naturalist 1,191,072 22,013 1,213,085
- Total recreation/naturalist 1,319,493 29,230 0 1,348,723
Construction in progress 1,785,883 363,673 2,149,556
Total general fixed assets $25,410,099 $3,264,338 $2,234,259 $26,440,178
123
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 STATEMENT OF GENERAL LONG-TERM DEBT
December 31, 1990 and 1989
1990 1989
Amount available and to be provided for
the payment of general long-term debt
Amount available in Debt Service Funds $10,418,754 $23,354,940
Amount to be provided by future taxes 5,346,246 6,705,060
Total available and to be provided $15,765,000 $30,060,000
General long-term debt payable
General long-term debt payable:
General obligation special assessment
improvement bonds $3,230,000 $6,510,000
Variable rate general obligation tax
increment bonds 10,845,000
General obligation tax increment
refunding bonds 9,485,000 9,425,000
Tax increment revenue refunding bonds 3,050,000 3,280,000
Total general long-term debt payable $15,765,000 $30,060,000
125
SUPPLEMENTAL SECTION
VOTO, TAUTGES, REDPATH & CO., LTD.
ri MirSor
CERTIFIED PUBLIC ACCOUNTANTS
Birch Lake Professional Building • 1310 E. Hwy. 96• White Bear Lake, MN 55110 • Fax(612)426-5004
• Phone(612)426-3263
T . TP
ROBERT ROBER J G.TAUTGES,VOO,CA CPA
JAMES S.REDPATH,CPA
D.KENNETH GEORGE,CPA
Independent Auditor's Report on Compliance With DAVID J.MOL,CPA
Requirements Applicable to Nonmajor Federal
Financial Assistance Program Transactions
-' To the Honorable Mayor and
Members of the City Council
City of Fridley,Minnesota
In connection with our audit of the 1990 general purpose financial statements of the City of
Fridley, Minnesota, and with our study and evaluation of the City of Fridley,Minnesota,internal
control systems used to administer federal financial assistance programs,as required by Office of
Management and Budget Circular A-128, "Audits of State and Local Governments," we selected
certain transactions applicable to certain nonmajor federal financial assistance programs for the year
-' ended December 31, 1990.
As required by OMB Circular A-128,we have performed auditing procedures to test compliance
with the requirements governing types of services allowed or unallowed and eligibility, that are
applicable to those transactions. Our procedures were substantially less in scope than an audit, the
objective of which is the expression of an opinion on the City of Fridley's compliance with these
requirements. Accordingly, we do not express such an opinion.
With respect to the items tested,the results of those procedures disclosed no material instances of
noncompliance with the requirements listed in the preceding paragraph except as described in the
attached schedule of findings and questioned costs. With respect to items not tested,nothing came
to our attention that caused us to believe that the City of Fridley had not complied,in all material
respects, with those requirements.
This report is intended for the use of the City of Fridley, Minnesota,the Federal Cognizant Audit
Agency and other federal agencies. This restriction is not intended to limit the distribution of this
report,which is a matter of public record.
VOTO,TAUTGES, REDPA & CO.,LTD.
— Certified Public Accountants
May 14, 1991
— MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • PRIVATE COMPANIES PRACTICE SECTION
MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
GOVERNMENT FINANCE OFFICERS ASSOCIATION • MINNESOTA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS
127
CITY OF FRIDLEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
— FINDING: LACK OF COMPLIANCE WITH THE DRUG-FREE WORKPLACE ACT
CONDITION: All grantees receiving grants from Federal agencies must certify that they will
provide a drug-free workplace. Every grantee,except a State or State agency,
is required to make this certification for each grant.
CRITERIA: Grantees certify they will provide a drug-free workplace by:
a) Publishing a policy statement notifying employees that the unlawful manufacture,
distribution,dispensing,possession or use of a controlled substance is prohibited in the
grantee's workplace and specifying the actions that will be taken against employees for
violation of such prohibition;
b) Establishing an ongoing drug-free awareness program to inform employees about
• The dangers of drug abuse in the workplace;
• The grantee's policy of maintaining a drug-free workplace;
— • Any available drug counseling,rehabilitation,and employee assistance programs;and,
• The penalties that may be imposed upon employees for drug abuse violations
occurring in the workplace;
c) Making it a requirement that each employee to be engaged in the performance of the grant
be given a copy of the statement required by paragraph(a);
d) Notifying the employee in the statement required by paragraph(a)that,as a condition of
employment under the grant,the employee will:
• Abide by the terms of the statement;and
_ • Notify the employer in writing of any criminal drug statute conviction for a violation
occurring in the workplace no later than five calendar days after such conviction;
e) Notifying the agency in writing within ten calendar days after receiving notice under
subparagraph(dX2)from an employee or otherwise receiving actual notice of such
conviction;
f) Taking one of the following actions,within 30 calendar days of receiving notice under
-' subparagraph(dX2),with respect to any employee who is so convicted:
• Taking appropriate personnel action against such an employee,up to and including
_ termination;or
• Requiring such employee to participate satisfactorily in a drug abuse assistance or
rehabilitation program approved for such purposes by a Federal,State,or local health,
law enforcement,or other appropriate agency.
CAUSE: The City was not aware of this Act.
129
VOTO, TAUTGES, REDPATH & CO., LTD. Virir Sir
CERTIFIED PUBLIC ACCOUNTANTS
Birch Lake Professional Building • 1310 E. Hwy. 96• White Bear Lake, MN 55110 • Fax (612)426-5004
• Phone(612)426-3263
RR . O ,CPA
ROBERT OBER I G.V TAUTGES,TO CPA
-� JAMES S.REDPATH,CPA
Independent Auditor's Report on the Internal Control Structure
in Accordance with Government Auditing Standards D.KENNETH GEORGE,CPA
DAVID J.MOL,CPA
To the Honorable Mayor and
Members of the City Council
City of Fridley, Minnesota
We have audited the general purpose financial statements of the City of Fridley, Minnesota, as of
and for the year ended December 31, 1990, and have issued our report thereon dated May 14,
1991.
We conducted our audit in accordance with generally accepted auditing standards and 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.
In planning and performing our audit of the general purpose financial statements of the City of
Fridley, Minnesota, for the year ended December 31, 1990, we considered its internal control
structure in order to determine our auditing procedures for the purpose of expressing our opinion
on the general purpose financial statements and not to provide assurance on the internal control
structure.
The management of the City of Fridley,Minnesota,is responsible for establishing and maintaining
an internal control structure. In fulfilling this responsibility,estimates and judgments by
management are required to assess the expected benefits and related costs of internal control
structure policies and procedures. The objectives of an internal control structure are to provide
management with reasonable,but not absolute, assurance that assets are safeguarded against loss
from unauthorized use or disposition,and that transactions are executed in accordance with
management's authorization and recorded properly to permit the preparation of general purpose
financial statements in accordance with generally accepted accounting principles. Because of
inherent limitations in any internal control structure,errors or irregularities may nevertheless occur
and not be detected. Also,projections of any evaluation of the structure to future periods is subject
to the risk that procedures may become inadequate because of changes in conditions or that the
effectiveness of the design and operation of policies and procedures may deteriorate.
— For the purpose of this report,we have classified the significant internal control structure policies
and procedures in the following categories;receivables,cash receipts, billings,accounts payable,
cash disbursements and payroll.
For all of the internal control structure categories listed above, we obtained an understanding of the
design of relevant policies and procedures and whether they have been placed in operation, and we
assessed control risk.
MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • PRIVATE COMPANIES PRACTICE SECTION
MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
GOVERNMENT FINANCE OFFICERS ASSOCIATION • MINNESOTA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS
131
Our consideration of the internal control structure would not necessarily disclose all matters in the
internal control structure that might be material weaknesses under standards established by the
American Institute of Certified Public Accountants. A material weakness is a reportable condition
in which the design or operation of one or more of the specific internal control structure elements
does not reduce to a relatively low level the risk that errors or irregularities in amounts that would
be material in relation to the general purpose financial statements being audited may occur and not
be detected within a timely period by employees in the normal course of performing their assigned
functions. We noted no matters involving the internal control structure and its operation that we
consider to be material weaknesses as defined above.
This report is intended for the information of management. This restriction is not intended to limit
the distribution of this report,which is a matter of public record.
/Alt, 7:e;Giffe/-, 4401,04.4 e‘
VOTO,TAUTGES, REDPATH&CO.,LTD.
Certified Public Accountants
— May 14, 1991
133
•
VOTO, TAUTGES, REDPATH & CO., LTD. tivS.
CERTIFIED PUBLIC ACCOUNTANTS
Birch Lake Professional Building • 1310 E. Hwy.96• White Bear Lake, MN 55110 • Fax (612)426-5004
• Phone(612)426-3263
ROBERT VOTO,CPA
ROBERT G.TAUTGES,CPA
...- JAMES S.REDPATH,CPA
D.KENNETH GEORGE,CPA
DAVID J.MOL,CPA
Independent Auditor's Report on Internal Controls
fAccounting and Administrative)Based on a Study and Evaluation
Made as a Part of an Audit of the General Purpose Financial Statements
and the Additional Tests Required by the Single Audit Act
To the Honorable Mayor and
Members of the City Council
City of Fridley, Minnesota
We have audited the general purpose financial statements of the City of Fridley, Minnesota,for the
year ended December 31, 1990,and have issued our report thereon dated May 14, 1991. As part
of our audit, we made a study and evaluation of the internal control systems, including applicable
internal administrative controls,used in administering federal financial assistance programs to the
extent we considered necessary to evaluate the systems as required by generally accepted auditing
standards, Government Auditing Standards, issued by the Comptroller General of the United
States,the Single Audit Act of 1984,and the provisions of Office of Management and Budget
Circular A-128,Audits of State and Local Governments. For the purpose of this report,we have
classified the significant internal accounting and administrative controls used in administering
federal financial assistance programs in the following categories:
Accounting Applications: Federal Assistance Programs:
• Receivables General Requirements:
• Cash Receipts • Political Activity
• Accounts Payable • Davis Bacon Act
• Cash Disbursements • Civil Rights
• Payroll • Relocation and Real Property
Acquisition
• Federal Financial Reports
• Allowable Costs/Cost Principles
• Drug Free Workplace
• Administrative Requirements
Specific Requirements:
• Types of Services
• Eligibility
• Matching Level of Effort
• Reporting
• Cost Allocation
• Special Requirements
MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • PRIVATE COMPANIES PRACTICE SECTION
MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
GOVERNMENT FINANCE OFFICERS ASSOCIATION • MINNESOTA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS
135
The management of the City of Fridley, Minnesota,is responsible for establishing and maintaining
internal control systems used in administering federal financial assistance programs. In fulfilling
that responsibility,estimates and judgments by management are required to assess the expected
benefits and related costs of control procedures. The objectives of internal control systems used in
administering federal financial assistance programs are to provide management with reasonable,
but not absolute,assurance that,with respect to federal financial assistance programs,resource use
is consistent with laws,regulations,and policies;resources are safeguarded against waste, loss,
and misuse; and,reliable data are obtained,maintained,and fairly disclosed in reports.
Because of inherent limitations in any system of internal accounting and administrative controls
used in administering federal financial assistance programs,errors or irregularities may
nevertheless occur and not be detected. Also,projection of any evaluation of the systems to future
periods is subject to the risk that procedures may become inadequate because of changes in
conditions or that the degree of compliance with the procedures may deteriorate.
Our study included.all of the applicable control categories listed above. During the year ended
December 31, 1990,the City of Fridley,Minnesota had no major federal financial assistance
programs and expended 71% of its total federal financial assistance under the following nonmajor
federal financial assistance program: Community Development Block Grant-Entitlement Grant.
With respect to internal control systems used in administering this nonmajor federal financial
assistance program,our study and evaluation included considering the types of errors and
irregularities that could occur,determining the internal control procedures that should prevent or
detect such errors and irregularities,determining whether the necessary procedures are prescribed
and are being followed satisfactorily, and evaluating any weaknesses.
With respect to the internal control systems used solely in administering the other nonmajor federal
financial assistance programs of the City of Fridley,Minnesota,our study and evaluation was
limited to a preliminary review of the systems to obtain an understanding of the control
environment and the flow of transactions through the accounting system. Our study and evaluation
of the internal control systems used solely in administering these nonmajor federal financial
assistance programs of the City of Fridley,Minnesota,did not extend beyond this preliminary
review phase.
Our study and evaluation was more limited than would be necessary to express an opinion on the
internal control systems used in administering the federal financial assistance programs of the City
of Fridley, Minnesota. Accordingly, we do not express an opinion on the internal control systems
_ used in administering the federal financial assistance programs of the City of Fridley,Minnesota.
Also, our audit,made in accordance with the standards mentioned above,would not necessarily
disclose material weaknesses in the internal control systems,for which our study and evaluation
was limited to a preliminary review of the systems, as discussed in the fifth paragraph of this
report.
137
However,our study and evaluation and our audit disclosed no condition that we believe to be a
material weakness in relation to a federal financial assistance program of the City of Fridley,
Minnesota.
This report is intended solely for the use of the City of Fridley,Minnesota, the Federal Cognizant
Audit Agency and other federal agencies, and should not be used for any other purpose. This
restriction is not intended to limit the distribution of this report,which,upon acceptance by the City
_ of Fridley,Minnesota,is a matter of public record.
VOTO,TAUTGES, REDPATH&CO.,LTD.
Certified Public Accountants
May 14, 1991
139
VOTO, TAUTGES, REDPATH & CO., LTD. Vir.K
CERTIFIED PUBLIC ACCOUNTANTS
Birch Lake Professional Building • 1310 E. Hwy. 96• White Bear Lake, MN 55110 • Fax (612)426-5004
• Phone(612)426-3263
ROBERT J.VOTO,CPA
ROBERT G.TAUTGES,CPA
JAMES S.REDPATH,CPA
D.KENNETH GEORGE,CPA
DAVID I.MOL,CPA
Independent Auditor's Report on Supplementary Information -
—
Schedule of Federal Financial Assistance
To the Honorable Mayor and
Members of the City Council
City of Fridley, Minnesota
We have audited the general purpose financial statements of the City of Fridley, Minnesota, for the
year ended December 31, 1990, and have issued our report thereon dated May 14, 1991. These
general purpose financial statements are the responsibility of the City of Fridley,Minnesota,
management. Our responsibility is to express an opinion on these general purpose financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and 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 financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
Our audit was made for the purpose of forming an opinion on the general purpose financial
statements of the City of Fridley,Minnesota,taken as a whole. The accompanying schedule of
federal financial assistance is presented for purposes of additional analysis and is not a required
part of the general purpose financial statements. The information in that schedule has been
subjected to the auditing procedures applied in the audit of the general purpose financial statements
and,in our opinion,is fairly presented in all material respects in relation to the general purpose
financial statements taken as a whole.
VOTO,TAUTGES,REDPATH&CO.,LTD,
Certified Public Accountants
May 14, 1991
MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • PRIVATE COMPANIES PRACTICE SECTION
MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
GOVERNMENT FINANCE OFFICERS ASSOCIATION • MINNESOTA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS
� di
VOTO, TAUTGES, REDPATH & CO., LTD. Alvic
CERTIFIED PUBLIC ACCOUNTANTS
Birch Lake Professional Building • 1310 E. Hwy. 96• White Bear Lake, MN 55110 • Fax(612)426-5004
• Phone(612)426-3263
ROBERT J,VOTO,CPA
ROBERT G.TAUTGES,CPA
JAMES S.REDPATH,CPA
D.KENNETH GEORGE,CPA
DAVID J.MOL,CPA
Compliance Report Based on an Audit of Genera]
Purpose Financial Statements Performed in
Accordance With Government Auditing Standards
To the Honorable Mayor and
Members of the City Council
City of Fridley,Minnesota
We have audited the general purpose financial statements of the City of Fridley as of and for the
year ended December 31, 1990,and have issued our report thereon dated May 14, 1991.
We conducted our audit in accordance with generally accepted auditing standards and 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.
Compliance with laws,regulations,contracts,and grants applicable to the City of Fridley is the
responsibility of the City of Fridley's management. As part of obtaining reasonable assurance
about whether the general purpose financial statements are free of material misstatement, we
performed tests of the City's compliance with certain provisions of laws,regulations,contracts,
and grants. However,our objective was not to provide an opinion on overall compliance with
such provisions.
The results of our tests indicate that,with respect to the items tested,the City of Fridley complied,
in all material respects,with the provisions referred to in the preceding paragraph. With respect to
items not tested,nothing came to our attention that caused us to believe that the City had not
complied,in all material respects, with those provisions.
This report is intended solely for the use of the City of Fridley,Minnesota,the Federal Cognizant
Audit Agency and other federal agencies, and should not be used for any other purpose. This
restriction is not intended to limit the distribution of this report,which,upon acceptance by the City
of Fridley, Minnesota,is a matter of public record.
44 71a, A4001/ 044.
VOTO, TAUTGES,REDPATH&CO.,LTD.
Certified Public Accountants
May 14, 1991
MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • PRIVATE COMPANIES PRACTICE SECTION
MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
GOVERNMENT FINANCE OFFICERS ASSOCIATION • MINNESOTA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS
4 A A
Exhibit K-1
CITY OF FRIDLEY, MINNESOTA
SCHEDULE OF FEDERAL GRANT INFORMATION
For The Year Ended December 31, 1990
Catalog# Accrued Accrued
Federal Funding Source/ Federal Revenue at Revenue at
Pass Through Agency/ Domestic January 1, Revenue December 31,
Program Title Assistance 1990 Recognized Expenditures 1990
U.S. Department of Housing and
Urban Development:
Anoka County:
Community Development Block Grant-
Entitlement Grant 14.218 $9,719 $110,217 $110,217 $11,656
— Metropolitan Council Housing and
Redevelopment Authority:
Housing Assistance Payments Program
for Low Income Families 14.156 3,297 31,190 31,190 7,951
Total Department of Housing and
— Urban Development 13,016 141,407 141,407 19,607
U.S. Department of Health and
— Human Services:
Greater Minneapolis Council of Churches:
Special Program for the Aging -Title Ill,
Part C - Nutrition Services 13.635 8,061 8,061 2,016
Federal Emergency Management
— Association:
Minnesota Department of Public Safety:
Civil Defense 83.516 6,162 6,162
Total Federal Assistance $13,016 $155,630 $155,630 $21,623
145
Exhibit K-2
—
CITY OF FRIDLEY, MINNESOTA
SCHEDULE OF ASSESSED VALUATION AND LONG-TERM DEBT
FOR THE TAX INCREMENT FINANCING DISTRICT
DECEMBER 31, 1990
Redevelopment District
Original Tax Capacity $1,942,001
Current Tax Capacity 4,310,718
Captured Tax Capacity-
retained by the Authority 2,368,717
Bonds Issues:
General Obligation Tax
Increment Bonds of 1981 $2,200,000
General Obligation Tax
Increment Bonds of 1982 625,000
General Obligation Tax
Increment Bonds of 1983 600,000
Tax Increment Revenue
Refunding Bonds of 1985 4,070,000 —
General Obligation Tax
Increment Redevelopment
Bonds of 1985 11,550,000 ,_
General Obligation Tax
Increment Refunding
Bonds of 1986 10,045,000
General Obligation Tax
Increment Refunding
Bonds of 1990 9,485,000
Total bonds issued 38,575,000
Amounts Redeemed:
Paid (2,760,000)
Bonds defeased- prior (3,375,000)
Bonds refunded through call - 1985 (10,845,000)
Bonds defeased- 1986 (9,060,000)
Total amount redeemed (26,040,000)
Outstanding bonds at December 31, 1990 $12,535,000
146
— Exhibit K-3
— CITY OF FRIDLEY. MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS
FOR THE TAX INCREMENT FINANCING DISTRICT
— INCEPTION TO DECEMBER 31. 1990
— Current Year Prior Years Total
Sources of Funds:
— Proceeds of refunding bonds $9,394,489 $30,805,467 $40,199,956
Tax increments received 2,510,294 7,541,645 10,051,939
Interest on invested funds 371,212 3,944,164 4,315,376
— Real estate sales 384,471 384,471
Rental 66,147 288,725 354,872
Home ownership revenue 10,125 10,125
— Other 2,785 303,834 306,619
Total sources of funds 12,344,927 43,278,431 55,623,358
— Uses of Funds:
Land acquisition 271,917 10,461,231 10,733,148
Building acquisition 999,142 69,829 1,068,971
— Site improvements or
preparation costs 11,622 3,945,257 3,956,879
Installation of public
— utilities and improvements 1,096,775 1,096,775
Bond payments
Principal 11,440,000 2,250,000 13,690,000
— Interest and fiscal charges 749,765 5,134,711 5,884,476
Refunding bond issuance cost 83,655 83,655
Payment to refunded bond escrow agent 9,257,980 9,257,980
— Refund to school districts 272,578 196,617 469,195
Refund of tax increment overpayment 94,897 94,897
Administrative costs 224,674 2,832,665 3,057,339
— Other 99,345 443,996 543,341
Total uses of funds 23,505,575 26,431,081 49,936,656
— District Balance ($11,160,648) $16,847,350 $5,686,702
147
STATISTICAL SECTION
Table 1
CITY OF FRIDLEY, MINNESOTA
GENERAL GOVERNMENT EXPENDITURES BY FUNCTION (1)
LAST TEN FISCAL YEARS
Fiscal General Public Civic Public Recreation, Debt
— Year Government Safety Center Works Naturalist Service Total
1981 $725,095 $1,994,788 $137,976 $1,430,657 $1,087,811 $52,545 $5,428,872
— 1982 829,434 1,939,996 115,893 1,321,993 911,141 232,793 5,351,250
1983 796,799 2,148,834 156,708 1,881,666 (2) 442,703 (2) 325,707 5,752,417
1984 1,017,807 2,201,155 149,332 1,887,379 (2) 442,917 (2) 386,140 6,084,730
— 1985 1,267,563 2,270,691 162,220 1,929,934 (2) 535,801 (2) 354,029 6,520,238
1986 1,872,200 2,576,847 180,839 1,886,888 (2) 535,430 (2) 1,006,771 8,058,975
1987 1,927,147 2,707,681 160,222 1,992,949 (2) 530,066 (2) 2,203,059 (3) 9,521,124
— 1988 1,948,427 2,741,465 205,654 2,014,817 (2) 589,771 (2) 2,752,080 (3) 10,252,214
1989 1,921,559 3,030,507 273,095 2,222,203 (2) 628,397 (2) 3,181,419 (3) 11,257,180
1990 2,452,968 3,008,700 173,260 2,451,372 (2) 641,432 (2) 15,789,169 (3)24,516,901
Note
(1) Includes General, Special Revenue, Capital Projects(HRA Fund only) and Debt
Service Funds
(2) Parks Maintenance activity is now under Public Works
(3) Special Assessment Debt Service Fund included
149
•
Table 2
CITY OF FRIDLEY. MINNESOTA
GENERAL REVENUE BY SOURCE(1)
LAST TEN FISCAL YEARS
General
Property
Taxes& Intergovern- —
Fiscal Special Licenses mental Charges For Miscellaneous Total
Year Assessment (2) &Permits Revenue Services Revenue Revenue
1981 $2,115,674 $233,901 $3,040,678 $129,887 $684,794 ' $6,204,934
1982 2,725,738 360,949 2,238,358 145,551 937,761 6,408,357
1983 2,794,763 320,964 2,994,968 131,018 943,014 7,184,727
1984 2,851,420 411,054 3,386,532 145,394 1,181,901 7,976,301
1985 3,146,086 422,606 3,228,902 153,483 1,299,011 8,250,088
1986 3,484,015 358,962 3,579,436 157,829 2,205,177 9,785,419
1987 4,662,570 405,583 3,256,331 164,617 2,529,385 11,018,486
1988 5,198,696 378,553 3,326,179 160,255 2,339,200 11,402,883
1989 6,192,563 477,192 4,952,247 158,663 2,156,704 13,937,369
1990 6,694,503 408,966 3,377,958 630,015 1,948,998 13,060,440
Note
(1) Includes General, Special Revenue, Capital Projects(HRA Fund only)and Debt
Service Funds
(2) Special Assessment Debt Service Fund included as of 1987
150
— Table 3
— CITY OF FRIDLEY, MINNESOTA
CERTIFIED PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collections Percentage Collection
— of Current of Levy of Prior Total
Certified Year's Taxes Collected Year's Taxes Ratio Outstanding,
Tax levy During During During of Total Current and
— Fiscal For Fiscal Fiscal Fiscal Fiscal Total Collections Delinquent
Year Period Period(1)(2) Period Period Collections to Tax Levy Taxes
— 1981 $2,767,955 $2,713,976 98.05% $49,166 $2,763,142 .9983:1 $59,067
1982 2,920,626 2,777,691 95.11% 21,771 2,799,462 .9585:1 153,574
1983 3,151,324 3,086,091 97.93% 55,382 3,141,473 .9969:1 124,610
— 1984 3,152,952 3,049,773 96.73% 45,490 3,095,263 .9817:1 132,652
1985 3,178,325 3,072,588 96.67% 76,894 3,149,482 .9909:1 150,983
1986 3,232,877 3,152,249 97.51% 44,094 3,196,343 .9887:1 180,738
— 1987 3,406,825 3,253,858 95.51% 49,299 3,303,157 .9696:1 284,407
1988 3,440,107 3,373,355 98.06% 106,318 3,479,673 1.0115:1 244,842
1989 3,652,452 3,574,837 97.87% 36,610 3,611,447 .9888:1 285,847
- 1990 4,512,647 4,393,986 97.37% 64,357 4,458,343 .9880:1 300,854
— Note
(1) Includes Homestead Credit
(2) Excludes collections from properties pledged to tax increment
151
CITY OF FRIDLEY, MINNESOTA
ESTIMATED MARKET VALUE AND TAXABLE VALUE OF ALL PROPERTY
LAST TEN FISCAL YEARS
Fiscal Year Payable 1981 1982 1983 1984
Assessment Year 1980 1981 1982 1983
Population, fiscal year 30,200 29,920 29,810 29,750
Real Property:
—
Estimated market value $632,523,959 $723,016,622 $776,074,092 $802,180,000
Taxable value-
Homestead $59,013,036 $65,308,228 $94,445,737 $94,343,673 '^
Excess and non-homestead 121,924,290 142,031,048 126,066,013 130,295,079
Less fiscal disparities contribution (17,377,237) (20,695,684) (25,629,645) (27,102,595)
—
Less tax increment value (2,708,711) (2,892,948) (3,951,300) (2,765,895)
Taxable value $160,851,378 $183,750,644 $190,930,805 $194,770,262
Personal property: ",
Estimated market value $18,731,800 $19,328,400 $19,741,300 $21,263,600
Taxable value $8,054,674 $8,311,212 $8,488,759 $9,143,348
—
Totals:
Estimated market value $651,255,759 $742,345,022 $795,815,392 $823,443,600
—
Taxable value $168,906,052 $192,061,856 $199,419,564 $203,913,610
Per market value ratios '"
Taxable value .259:1 .259:1 .251:1 .248:1
Per capita valuations '"
Estimated market value $21,565 $24,811 $26,696 $27,679
—
Taxable value $5,593 $6,419 $6,690 $6,854
Real property
Taxable value - '"
Fiscal disparities distribution $7,354,639 $11,355,678 $12,509,174 $15,369,625
Notes
(1) The Minnesota Legislature enacted legislation which changed the method of
computing property taxes in 1988 and 1989. Those changes have been reflected
in the computation of the taxable value for taxes payable in 1989 and 1990
(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,
1989 upon which the 1990 lavy was based was$21,152,998.
152
Table 4
1985 1986 1987 1988 1989 1990
1984 1985 1986 1987 1988(1) 1989
29,440 29,423 29,310 29,336 29,250 28,335
$807,910,500 $839,392,000 $879,498,600 $907,274,900 $941,136,600 $998,231,500
$91,923,166 $91,343,841 $94,010,922 $94,216,387 $11,864,707 $6,858,848
132,234,317 143,450,918 153,262,018 152,658,373 19,425,676 19,728,534
(29,835,444) (29,730,694) (34,112,779) (37,235,245) (4,351,931) (4,435,055)
(5,458,497) (9,032,222) (11,348,839) (14,921,389) (2,524,911) (2,368,717)
$188,863,542 $196,031,843 $201,811,322 $194,718,126 $24,413,541 $19,783,610
$21,534,300 $26,208,700 $26,531,000 $26,731,000 $26,452,800 $27,116,700
$9,259,749 $11,245,936 $11,393,525 $11,479,525 $1,385,766 $1,369,388
$829,444,800 $865,600,700 $906,029,600 $934,005,900 $967,589,400 $1,025,348,200
$198,123,291 $207,277,779 $213,204,847 $206,197,651 $25,799,307 $21,152,998
.239:1 .239:1 .235:1 .221:1 .027:1 .021:1
$28,174 $29,419 $30,912 $31,838 $33,079 $36,187
$6,730 $7,045 $7,274 $7,029 $882 $747
$18,142,244 $18,296,235 $20,639,055 $23,382,622 $3,428,008 $3,817,118
153
—
CITY OF FRIDLEY. MINNESOTA
SIGNIFICANT MINNESOTA TAX POLICIES
DECEMBER 31, 1990
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 rates. 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 adjusted net tax capacity.
Properties are physically reviewed by assessors at least once every four years. —
The Minnesota Department of Revenue analyzes sales of properties annually,comparing sales prices with
the local assessors market value. This establishes a sales ratio. The sales ratio is also used in _,
determining municipal and school district state aids.
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. The schedule below shows some of "'
the major classes of property and their applicable class rate.
Type of Property 1990
Class Rates
Residential Homestead
First $68,000 1.00%
$68,000 - 100,000 2.00
Over $100,000 3.00 —
Commercial/Industrial
First $100,000 3.30 .,
Over $100,000 5.06
—
Rentals
Apartments: 4+ units 3.60
Less than 4 units 3.00 —
Title II, MFHA, Sect. 8 2.40
Property Tax Refund. Residential property tax credits are gauged by percentages of the net property tax ,^
to household income: to the extent a homeowners income(1.2%for incomes below$1,000, up to 4%for
incomes of $60,000) homeowners may receive State refunds up to $400.
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 10 percent. The
refund is equal to 75 percent of the first$250 of the increase and 90 percent of the increase over$250.
154
CITY OF FRIDLEY, MINNESOTA
PROPERTY TAX RATES AND CALCULATED TAX LEVIES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Property Tax Rates(1)
School School School School
Fiscal District District District District
Year City No. 11 No. 13 No. 14 No. 16 (2) County
1981 15.722 38.00 41.48 41.12 51.08 27.91
1982 14.278 46.847 48.266 46.365 65.542 26.113
1983 14.908 45.474 50.156 55.679 62.837 26.594
1984 14.340 55.225 56.227 60.332 63.739 28.363
1985 14.654 52.830 50.487 59.675 60.914 27.017
1986 14.256 55.740 53.797 60.919 63.878 28.738
1987 14.555 54.926 63.234 57.087 60.989 29.414
1988 14.992 62.181 60.733 67.454 70.880 30.766
1989 12.492% 51.384% 51.364% 55.193% 53.212% 27.425%
1990 14.995% 47.893% 41.329% 43.158% 43.334% 28.846%
Certified
Levies Calculated Tax Levies
School School School School _,
Fiscal District District District District
Year City No. 11 No. 13 No. 14 No. 16(2) County
1981 $2,767,955 $296,393 $1,795,295 $3,493,129 $2,144,854 $4,904,234
1982 2,920,626 447,988 2,383,069 4,412,574 3,130,401 5,332,248
1983 3,151,324 461,623 2,597,543 5,576,373 3,052,396 5,630,016
1984 3,152,952 563,791 2,960,066 6,228,287 3,310,710 5,728,438
1985 3,163,427 536,388 2,650,406 6,152,690 3,122,134 5,825,992
1986 3,232,877 576,032 2,894,115 6,402,200 3,555,419 6,451,056
1987 3,406,825 585,299 3,522,818 6,298,305 3,500,364 6,864,334
1988 3,440,107 647,200 3,599,278 7,437,847 3,817,013 7,031,655
1989 3,652,452 708,533 3,692,407 7,836,416 3,448,538 7,939,936 _.
1990 4,509,208 566,098 2,930,508 5,953,244 3,097,572 9,883,766
Notes
(1) 1980-1988 tax rates are expressed as mills; 1989 and 1990 rates are expressed as
tax capacity rates.
(2) Vocational/Technical District#916 included in District No. 16.
(3) Six Cities Watershed District included with School District No. 11 beginning in 1985.
(4) Rice Creek Watershed District included with School District No. 13,14 and 16.
156
Table 5
Totals
Total School School School School
Special District District District District
Districts No. 11 (3) No. 13(4) No. 14(4) No. 16(2),(4)
_ 4.36 85.54 89.47 89.11 99.07
4.057 90.864 92.714 90.813 109.990
4.649 91.170 96.307 101.830 108.988
_ 4.916 100.336 101.571 105.676 109.083
5.229 99.480 97.257 106.445 107.684
4.956 • 103.502 101.673 108.795 111.754
5.761 104.299 112.889 106.742 110.644
5.531 113.334 112.022 118.743 122.169
4.679% 95.813% 95.908% 99.737% 97.756%
4.399% 95.851% 89.554% 91.383% 92.498%
Net
Total Total Yearly Contribution Tax Total
Special All Local Percentage To Metro Increment Tax
Districts Tax Levies Change Tax Pool Districts Levies
$718,810 $16,120,670 4.70% $1,113,318 $193,763 $17,427,751
779,684 19,406,590 20.38% 925,052 304,517 20,636,159
924,841 21,394,116 10.24% 1,402,913 340,539 23,137,568
1,044,451 22,988,695 7.45% 1,209,389 311,160 24,509,244
1,073,929 22,524,966 (2.02)% 1,343,511 573,946 24,442,423
1,080,737 24,192,436 7.40% 1,298,052 867,372 26,357,860
1,269,417 25,447,362 5.19% 1,608,958 993,610 28,049,930
1,246,009 27,219,109 6.96% 1,799,575 1,530,798 30,549,482
_ 1,321,824 28,600,106 5.07% 91,973 2,357,865 31,049,944
1,442,262 28,382,658 (.08)% 92,659 2,510,294 30,985,611
157
Table 6
CITY OF FRIDLEY, MINNESOTA
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Total
Current Current Collections Delinquent Collections Outstanding -
Fiscal Assessments Assessments to Amount Assessments Total to Current Delinquent
Year Due Collected Due Collected Collected Levy Assessments
1981 785,128 755,588 96.24% 87,206 842,794 107.34% 347,975
1982 946,330 780,838 82.51% 65,666 846,504 89.45% 432,530
1983 845,916 739,977 87.48% 99,458 839,435 99.23% 429,947 -
1984 811,722 710,323 87.51% 144,614 854,937 105.32% 371,951
1985 893,674 802,910 89.84% 133,182 936,092 104.75% 344,254
1986 765,737 730,149 95.35% 143,891 874,040 114.14% 176,879
1987 917,525 845,716 92.17% 30,524 876,240 95.50% 221,994
1988 782,079 779,413 99.66% 41,719 821,132 104.99% 202,296
1989 743,555 706,442 95.01% 52,374 758,816 102.05% 168,014
1990 604,960 577,064 95.39% 41,913 618,977 102.32% 151,658
.-.
158
CITY OF FRIDLEY, MINNESOTA
HISTORY OF CERTIFIED TAX LEVIES AND TAX RATES
LAST TEN FISCAL YEARS
1981 1982 1983 1984
Certified tax levies
General Fund $2,684,615 $2,838,504 $3,070,254 $3,071,882 —
General Debt Service Funds 38,570 37,352 36,300 36,300
Capital Improvement Fund 44,770 44,770 44,770 44,770
Subtotal 2,767,955 2,920,626 3,151,324 3,152,952 —
Agency Fund
Total $2,767,955 $2,920,626 $3,151,324 $3,152,952
Mill rate (1980-1988); Tax Capacity Rate (1989-1990) --
General Fund 15.248 13.877 14.525 13.970
General Debt Service Funds 0.220 0.183 0.172 0.166
Capital Improvement Fund 0.254 0.218 0.211 0.204 -.
Subtotal 15.722 14.278 14.908 14.340
Agency Fund —
Total 15.722 14.278 14.908 14.340
160
Table 7
1985 1986 1987 1988 1989 1990
$3,083,270 $3,141,859 $3,311,826 $3,345,190 $3,556,166 $4,421,519
35,175 35,628
44,982 45,521 85,542 86,320 87,689 87,689
3,163,427 3,223,008 3,397,368 3,431,510 3,643,855 4,509,208
14,898 9,869 9,457 8,597 8,597 3,439
$3,178,325 $3,232,877 $3,406,825 $3,440,107 $3,652,452 $4,512,647
14.283 13.895 14.188 14.614 12.192% 14.705%
0.163 0.158
0.208 0.203 0.367 0.378 0.300% 0.290%
14.654 14.256 14.555 14.992 12.492% 14.995%
0.240 0.074 0.075 0.066 0.052% 0.015%
14.894 14.330 14.630 15.058 12.544% 15.010%
161
CITY OF FRIDLEY, MINNESOTA
—
RATIO OF NET GENERAL BONDED DEBT
TO TAXABLE VALUES AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS —
Deduct
City Debt Special
Total Service Fund Assessment,
Fiscal Taxable Gross Monies Revenue and
Year Population Value Bonded Debt Available HRA Bonds
—
1981 30,200 $168,906,052 $8,954,000 $76,953 $8,784,000
1982 29,920 $192,061,856 $9,160,000 $82,255 $9,020,000
1983 29,810 $199,419,654 $8,285,000 $84,240 $8,180,000
1984 29,750 $203,913,610 $7,470,000 $86,709 $7,400,000 �'
1985 29,440 $198,123,291 $22,125,000 $86,117 $22,090,000
1986 29,423 $207,277,779 $34,035,000 $91,510 $34,035,000
1987 29,310 $213,204,847 $33,195,000 -0- $33,195,000
1988 29,336 $206,197,651 $31,845,000 -0- $31,845,000
1989 29,250 $25,799,307 $30,060,000 -0- $30,060,000
1990 28,335 $21,152,998 $15,765,000 -0- $15,765,000
Notes
(1)The Minnesota Legislature enacted legislation in 1988 and 1989 which changed the
method of computing property taxes. Those changes have been reflected in the
computation of the taxable value for taxes payable in 1989 and 1990
162
Table 8
Debt to
Total Net General
— Net General Taxable Bonded Debt
Bonded Debt Value Per Capita
— $93,047 0.05% $3.08
$57,745 0.03% $1.93
$20,760 0.01% $0.70
— -0- - -
-0- - -
-0- - -
— -0- - -
-0- - -
-0- - -
— -0- - -
163
Table 9
CITY OF FRIDLEY.MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
DECEMBER 31, 1990
Market Value $1,025,348,200
(A) Debt Limit 2% of Market Value $20,506,964
Amount of Debt Applicable to Debt Limit: '"
Total Bonded Debt $15,765,000
(B) Deductions: —
Tax Increment Redevelopment Bonds $9,485,000
Special Assessment Bonds 3,230,000
Tax Increment Revenue Bonds 3,050,000 15,765,000
Total Amount of Debt Applicable to Debt Limit -0-
Legal Debt Margin $20,506,964
Notes
(A) M.S.A. Section 475.53 (see following page)
(B) M.S.A. Section 475.51 (see following page)
164
CITY OF FRIDLEY, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED)
YEAR ENDED DECEMBER 31, 1990
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,if 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, and
public lighting, heating or power systems, and of 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.'
165
Table 10
CITY OF FRIDLEY, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING
BONDED DEBT AND COMPARATIVE DEBT RATIOS —
DECEMBER 31, 1990
Debt 0/0 of Debt Net Debt
Gross Service Net Applicable Applicable
Governmental Unit Debt Funds Debt to City to City .,
Direct and overlapping debt
Direct debt:
City of Fridley $12,715,000 $2,994,988 $9,720,012 100.00% $9,720,012
Overlapping debt:
School Districts
No. 11 $33,908,635 $3,636,420 $30,272,215 1.24% $375,375 —
No. 13 50,000 120,877
No. 14 160,000 256,801
No. 16 5,650,000 1,761,732 3,888,268 38.51% 1,497,372 —
Metro Transit 9,250,000 3,261,000 5,989,000 1.18% 70,670
Metro Council 427,696,000 76,456,989 351,239,011 1.09% 3,828,505
Anoka County 58,908,344 2,892,044 56,016,300 19.44% 10,889,569
North Suburban
Hospital District 15,373,960 1,793,727 13,580,233 35.47% 4,816,909 —
Vocational/Technical
District No. 916 13,085,000 2,070,645 11,014,355 1.96% 215,881 —
Overlapping debt 564,081,939 92,250,235 471,999,382 21,694,282
Total direct and
overlapping debt $576,796,939 $95,245,223 $481,719,394 $31,414,294
166
Table 11
— CITY OF FRIDLEY, MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR GENERAL BONDED DEBT TO TOTAL GENERAL
— GOVERNMENT EXPENDITURES
LAST TEN FISCAL YEARS
Ratio of Debt
Total Total Service to
— Fiscal Debt General General
Year Principal Interest Service Expenditures(1) Expenditure
— 1981 $43,743 $8,802 $52,545 $5,428,872 .0097:1
1982 44,845 187,948 232,793 5,351,250 .0435:1
1983 35,000 290,707 325,707 5,752,417 .0566:1
— 1984 85,000 301,140 386,140 6,084,730 .0635:1
1985 120,000 234,029 354,029 6,520,238 .0543:1
1986 215,000 791,771 1,006,771 8,058,975 .1249:1
— 1987 740,000 1,463,059 2,203,059 9,521,124 .2314:1
1988 1,380,000 1,372,080 2,752,080 10,252,214 .2684:1
1989 1,640,500 1,540,919 3,181,419 11,257,180 .2826:1
— 1990 14,720,000 1,069,169 15,789,169 24,433,246 .6462:1
— (1) Includes General, Special Revenue, Debt Service and Capital Projects(HRA Fund Only)
(2) Special Assessment Debt Service Fund included as of 1987
167
—
Table 12
CITY OF FRIDLEY, MINNESOTA
REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
Net
—
Operating
Revenue
Direct Direct Available
Fiscal Operating Operating For Debt Debt Service Requirements
Year Revenue Expenses Services Principal Interest Total Coverage
1981 1,560,081 1,681,670 (121,589) 107,750 16,065 123,815 - "'
1982 1,753,918 1,767,818 (13,900) 97,500 11,545 109,045 -
1983 1,928,973 1,850,966 78,007 50,000 8,659 58,659 1.33
1984 2,401,206 2,043,653 357,553 50,000 6,907 56,907 6.28
1985 2,296,415 2,253,164 43,251 50,000 5,152 55,152 0.78
1986 2,434,100 2,522,048 (87,948) 50,000 3,400 53,400 -
1987 2,473,814 2,513,721 (39,907) 50,000 1,646 51,646 -
1988 2,725,742 2,943,443 (217,701) 20,000 380 20,380 -
1989 2,879,180 3,134,235 (255,055) - - - -
1990 3,049,658 3,213,227 (163,569) - - - -
168
—
Table 13
CITY OF FRIDLEY. MINNESOTA
— DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Annual
Average
Fiscal Per Capita Median School Unemployment
Year Population(1) Income Age(4) Enrollment(3) Rate (5)(6)
— 1981 30,200 8,700 27.7 (3) 5,915 4.7%
1982 29,920 8,750 28.0 (3) 5,595 6.6%
1983 29,810 9,188 28.3 5,238 7.4%
.... 1984 29,750 9,647 28.6 5,007 5.0%
1985 29,440 10,129 28.9 4,833 4.9%
1986 29,423 10,635 29.2 4,660 4.3%
— 1987 29,310 13,238 29.9 4,453 4.7%
1988 29,336 13,241 29.9 4,367 3.1%
1989 29,250 13,241 31.0 4,362 2.9%
1990 28,335 (2) 16,431 (7) 33.0 4,371 4.5%
— Sources:
(1) Estimated by Metropolitan Council
(2) Current Population Report- Bureau of the Census
— (3) Estimated- excludes Grace Parochial High School as it is not supported by
by property tax dollars
(4) Source book of Demographic and Buying Power
— (5) Minnesota Department of Economic Security-Twin Cities Labor Market
(6) 1983 - 1989 Unemployment Rate as reported is area wide for the
County of Anoka rather than for the City of Fridley only
— (7) National Planning Data Corporation
169
Table 14
—
CITY OF FRIDLEY, MINNESOTA
CONSTRUCTION BANK DEPOSITS AND PROPERTY VALUE
LAST TEN FISCAL YEARS
Commercial Construction Residential Construction Estimated Market Value
Number Number Bank(1)
Fiscal of of Deposits Taxable Non-
Year Units Value Units Value (Thousands) Property Taxable (2) Total
1981 32 $4,589,180 348 $2,809,033 $19,399 $651,255,759 $109,749,739 $761,005,49E
1982 60 5,498,098 305 3,012,844 22,875 742,345,022 109,749,739 852,094,761
1983 48 8,921,297 348 2,969,417 26,099 795,815,392 110,559,039 906,374,431^
1984 67 19,332,432 345 4,388,689 27,917 823,443,600 110,559,039 934,002,639
1985 54 12,729,783 365 5,430,598 24,074 829,444,800 110,559,039 940,003,839
1986 41 10,871,941 379 5,409,450 27,025 865,600,700 177,123,840 1,042,724,54C'
1987 54 9,845,600 435 23,413,715 33,201 906,029,600 177,123,840 1,083,153,44C
1988 70 17,421,494 340 3,660,384 29,030 934,005,900 177,123,840 1,111,129,740
1989 93 30,529,963 301 3,522,035 30,329 967,589,400 177,123,840 1,144,713,240^
1990 83 12,883,850 349 3,321,362 29,902 1,025,348,200 177,123,840 1,202,472,040
Sources:
(1) Fridley State Bank
(2) Non-taxable property is reevaluated by the county assessors every six years
.-r
170
Table 15
CITY OF FRIDLEY, MINNESOTA
_ PRINCIPAL TAXPAYERS
DECEMBER 31, 1990
Fiscal Year 1990
Percent
1989* of Total
Taxable Taxable
Rank Taxpayer Type of Business Valuation Valuation**
1 Medtronics, Inc. Electro-medical devices $1,162,040 4.16%
2 FMC Corporation Naval ordinance 1,005,661 3.60%
3 Onan Corporation Portable electric generators 923,588 3.30%
4 Dayton Hudson Target discount store, warehouse and office 882,090 3.16%
5 Burlington Northern Railroad Operating property 803,876 2.88%
6 Dow Brands Cosmetics 576,203 2.06%
7 Maurice Fillister Georgetown apartments 405,061 1.45%
8 University Avenue Associates Springbrook apartments 306,698 1.10%
9 Holiday Plus Discount department store 289,954 1.04%
10 East River Road Business Center Business and retail complex 286,776 1.03%
Total $6,641,947 23.78%
_ Notes
* The 1990 levy was based upon the January 2, 1989 taxable value.
** Before contribution to Metropolitan Tax Pool and tax increment financing
171
CITY OF FRIDLEY, MINNESOTA
INSURANCE COVERAGE
DECEMBER 31, 1990 -•
All risk perils, 100% coinsurance
Buildings and contents
—
Blanket, agreed amount endorsement,
replacement cost coverage $18,272,659
Contractor's equipment 903,957
Boiler and machinery 500,000
Municipal general liability
Each occurrence limit 600,000
Products/completed operations aggregate limit 600,000
Fire damage limit 50,000
Medical expense limit 1,000
Medical expense aggregate occurrence limit 10,000
Limited pollution liability 600,000
Automobile liability
Liability 600,000
Personal injury protection 40,000 .,
Uninsured/underinsured motorist 600,000
Comprehensive Actual cash value
—
Liquor liability
Bodily injury
Each person 1,000,000
Each occurrence 1,000,000
Property damage
Each occurrence 1,000,000
Loss of means of support 1,000,000 —
Law Enforcement professional liability
Combined single limit per loss
Personal injury, bodily injury, property —
damage, punitive damages 600,000
Municipal errors and omissions liability 600,000
Employee benefit programs liability 600,000
—
Worker's compensation Statutory
PRINCIPAL OFFICIALS' BONDS
DECEMBER 31, 1990
All employees are covered by a blanket of faithful performance bond of$100,000.
172
CITY OF FRIDLEY, MINNESOTA
MISCELLANEOUS STATISTICAL INFORMATION
DECEMBER 31, 1990
Date of Incorporation (Village of Fridley) July 1, 1949
Date of Adoption of City Charter September 10, 1957
effective
September 25, 1957
Form of Government Council/Manager
Fiscal year begins January 1
Area of City 11 square miles
-. Bond rating(Moody's Investors Service, Incorporated) Aa-1
Elections
Last Election - Councilmember Ward I and III (State General) November 6, 1990
Registered voters 18,509
Number of votes cast 12,031
Percent(%) of registered voters voting 65%
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
1981 Estimated by Metropolitan Counci 30,200
1982 Estimated by Metropolitan Counci 29,920
1983 Estimated by Metropolitan Counci 29,810
1984 Estimated by Metropolitan Counci 29,750
1985 Estimated by Metropolitan Counci 29,440
1986 Estimated by Metropolitan Counci 29,423
1987 Estimated by Metropolitan Counci 29,310
-' 1988 Estimated by Metropolitan Counci 29,336
1989 Estimated by Metropolitan Counci 29,250
1990 Federal Census 28,335
Permanent Employees—As of December 31 Number
1981 129
"- 1982 123
1983 119
1984 119
1985 125
1986 125
1987 125
1988 126
1989 126
1990 126
173
CITY OF FRIDLEY, MINNESOTA ..,
MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED)
DECEMBER 31, 1990
Fire protection
Number of stations 3
Volunteer firefighters 33
Full-time firefighters 5
Fire rating Class 4
Police protection
Number of stations 1
Number of sworn officers 33 —
Number of street lights 954
Number of traffic signal installations 32
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 125.45
Trunk highways 10.79 —
County roads 14.56
Sidewalks 10.98
Miles of sewer
Storm 42.59
Sanitary 102.62 —
Miles of water mains 109.92
Municipal water system source
City of Fridley Water Plant
(13 wells)--capacity of 15
million gallons per day
Number of water connections December 31, 1990 8,247 connections —
Daily average consumption (gallons) 6.9 million gallons
Elevated storage capacity .5 million gallons
Water storage reservoirs 4.5 million gallons
Number of fire hydrants 1,066
Municipal sewer system —
Disposal --through Metropolitan Waste Control
Commission
Number of connections December 31, 1990 8,344 —
Average daily flow (includes infiltration/inflow) 3.15 million gallons
174
CITY OF FRIDLEY. MINNESOTA
MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED)
DECEMBER 31. 1990
Parks and Recreation Areas
Developed 425 Acres
Undeveloped 125 Acres
Total 550 Acres
City Parks Schools Total
Number of:
Hockey rinks 7 0 7
General skating rinks 18 0 18
Playgrounds 29 8 37
Swimming beaches 1 0 1
Swimming pools 0 1 1
Picnic grounds 2 0 2
Day camp sites 1 0 1
Baseball diamonds 4 5 9
Softball diamonds 27 11 38
Outdoor basketball courts 21 9 30
—' Tennis courts 25 19 44
Horseshoe courts 16 0 16
Archery ranges 1 0 1
— Permanent playground buildings 3 0 3
Permanent picnic shelters 7 0 7
Soccer fields 6 2 8
Football fields 7 8 15
175
CITY OF FRIDLEY, MINNESOTA
GENERAL INFORMATION
DECEMBER 31, 1990
Location - Transportation
The City of Fridley, with a total land area of eleven square miles and an estimated population of 28,267,
is located at the northern boundaries of Minneapolis and Columbia Heights, about eight miles from the
Minneapolis central business district. Freight service is provided in the area by local and interstate truck —
lines and Burlington Northern Railroad. Commuter transportation is available through Metropolitan Transit
Commission facilities. Highways serving Fridley include interstate#694 (beltline around the metropolitan
area) and State Highways. An International Airport, located approximately twenty-five miles south of Fridley,
and private business aviation facilities located at the Anoka County and Crystal Airports, provide air .,
transportation and are operated by the Metropolitan Airport Commission.
Medical Facilities
Medical facilities in Fridley include 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 Manor Nursing Home.
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 165 certified personnel in the education of about 2,535 students. Grace
Parochial High School has an enrollment of approximately 789. 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 enrollment of 1,836 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.
176
•
CITY OF FRIDLEY, MINNESOTA
GENERAL INFORMATION (CONTINUEDI
DECEMBER 31, 1990
Larger Employers
Larger employers in the City of Fridley include:
Full-Time
Employer Product or Service Employees
FMC Corporation Pumps and naval ordinance 2,400
Onan Corporation Portable generators, electronic equipment 1,648
Medtronics, Inc. Electro-medical devices and hdqtrs. 1,550
Burlington Northern Railroad Northtown yard 1,200
Minco Products, Inc. Electronic devices 503
Unity Hospital Medical services 443
Dow Brands Cosmetics 400
Kurt Manufacturing Machine parts 379
Target Stores, Warehouse Discount department store 299
Safetran Systems Corporation Railroad accessories 248
Independent School District#14 Fridley school district 231
Midwest Printing Printing TV guide 223
Snyder General Corporation Air moving devices 164
Longview Fiber Company Packaging supplies 146
City of Fridley Governmental entity 126
177