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1991 CAFR COMPREHENSIVE ANNUAL FINANCIAL REPORT -,... .... , i,,:4 4. a Ve •'. CITY OF FRIDLEY MINNESOTA 1 FOR THE YEAR ENDED DECEMBER 31, 1991 - CITY OF FRIDLEY, MINNESOTA Comprehensive Annual Financial Report December 31, 1991 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, 1991 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. 1991 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 Solid Waste Abatement Fund: Comparative Balance Sheet C-7 82 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual C-8 83 Drug and Gambling Forfeiture Fund: Comparative Balance Sheet C-9 84 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual C-10 85 HRA Reimbursement Fund: Comparative Balance Sheet C-11 86 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual C-12 87 Debt Service Funds: Combining Balance Sheet D-1 89 Combining Statement of Revenues, Expenditures and Changes in Fund Balances D-2 90 CITY OF FRIDLEY. MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31. 1991 TABLE OF CONTENTS (CONTINUED) EXHIBIT PAGE Capital Projects Funds: Combining Balance Sheet E-1 92 Combining Statement of Revenues, Expenditures and Changes in Fund Balances E-2 94 Enterprise Funds: Combining Balance Sheet F-1 99 Combining Statement of Revenues, Expenses and Changes in Retained Earnings F-2 100 Combining Statement of Cash Flows F-3 101 Liquor Fund: Comparative Balance Sheet F-4 102 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings F-5 103 i Comparative Statement of Cash Flows F-6 104 Public Utility Fund: Comparative Balance Sheet F-7 105 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings F-8 106 Comparative Statement of Cash Flows F-9 107 Internal Service Funds: Combining Balance Sheet G-1 109 Combining Statement of Revenues, Expenses and Changes in Retained Earnings G-2 110 Combining Statement of Cash Flows G-3 111 Employee Benefits Fund: Comparative Balance Sheet G-4 112 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings G-5 113 Comparative Statement of Cash Flows G-6 114 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT — YEAR ENDED DECEMBER 31, 1991 TABLE OF CONTENTS (CONTINUED) EXHIBIT PAGE Self Insurance Fund: Comparative Balance Sheet G-7 115 — Comparative Statement of Revenues, Expenses and Changes in Retained Earnings G-8 116 Comparative Statement of Cash Flows G-9 117 Trust and Agency Funds: — Combining Balance Sheet H-1 120 Industrial Development Revenue Bond Trust Fund: Comparative Statement of Revenues, Expenditures and Changes in Fund Balance H-2 121 All Agency Funds: Combining Statement of Changes in Assets and Liabilities H-3 122 General Fixed Assets: Comparative Schedule of General Fixed Assets I-1 125 Schedule of Changes in General Fixed Assets - By Function and Activity 1-2 126 Schedule of Changes in General Fixed Assets - By Function and Activity 1-3 127 — General Long-Term Debt: — Comparative Schedule of General Long-Term Debt J-1 129 SUPPLEMENTAL INFORMATION Independent Auditor's Report on Compliance with Requirements Applicable to Nonmajor Federal Financial Assistance Program Transactions 131 Independent Auditor's Report on the Internal Control Structure in Accordance with Government Auditing Standards 133 Independent Auditor's Report on Internal Control Structure Used in Administering Federal Financial Assistance Programs 137 CITY OF FRIDLEY. MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31. 1991 TABLE OF CONTENTS (CONTINUED) EXHIBIT PAGE SUPPLEMENTAL INFORMATION (CONTINUED) Independent Auditor's Report on Compliance with General Requirements Applicable to Federal Financial Assistance Programs 143 Independent Auditor's Report on Supplementary Information - - Schedule of Federal Financial Assistance 145 Compliance Report Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government —' Auditing Standards 147 Schedule of Federal Financial Assistance K-1 149 Schedule of Assessed Valuation and Long-Term Debt for the Tax Increment Financing District K-2 150 Schedule of Sources and Uses of Public Funds for the Tax Increment Financing District K-3 151 STATISTICAL SECTION TABLE General Governmental Expenditures by Function - Last Ten Fiscal Years 1 153 General Revenues by Source - Last Ten Fiscal Years 2 154 Certified Property Tax Levies and Collections - Last Ten Fiscal Years 3 155 Assessed and Estimated Market Value of All Taxable Property - — Last Ten Fiscal Years 4 156 Significant Minnesota Tax Policies Property Tax Rates Per $1,000 of Assessed Value and Calculated Tax Levies - All Overlapping Governments - Last Ten Fiscal Years 5 160 Special Assessment Levies and Collections - Last Ten Fiscal Years 6 162 History of Certified Tax Levies and Actual Mill Rates - — Last Ten Fiscal Years 7 164 Ratio of Net General Bonded Debt to Assessed Values and — Net Bonded Debt Per Capita - Last Ten Fiscal Years 8 166 Computation of Legal Debt Margin 9 168 Computation of Direct and Overlapping Bonded Debt and Comparative Debt Ratios 10 170 CITY OF FRIDLEY. MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31. 1991 TABLE OF CONTENTS (CONTINUED) TABLE PAGE — STATISTICAL SECTION (CONTINUED) Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Government Expenditures - Last Ten Fiscal Years 11 171 Revenue Bond Coverage - Last Ten Fiscal Years 12 172 — Demographic Statistics - Last Ten Fiscal Years 13 173 Construction, Bank Deposits and Property Value - Last Ten Fiscal Years 14 174 Principal Taxpayers 15 175 — Insurance Coverage 176 Miscellaneous Statistical Information 177 — General Information 179 .. .. INTRODUCTORY SECTION .. .. r a I I. I. S r. CITY OF FRIDLEY, MINNESOTA ELECTED AND APPOINTED OFFICIALS DECEMBER 31, 1991 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 H Dennis L Schneider 1991 Councilmember,Ward III Edward J. Fitzpatrick 1994 Effective January 1992 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 1994 Councilmember,Ward Ill Edward J. Fitzpatrick 1994 APPOINTED OFFICIALS City Manager - William W. Bums 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�Y P - Barbara J. Dacy Division Heads: Public Works Superintendent - Ralph S. Volkman Chief Building Official - Darrel G. Clark Liquor Stores Manager - Kathleen L Schmitz 1 t CITY ADMINISTRATIVE ORGANIZATIONAL STRUCTURE 1991 Total Authorized Positions(137) l CITY MANAGER(8) • City Manager Asst to City Manager Personnel Technician Public Information Specialist Secretary to the City Manager Personnel Secretary FINANCE(23) I I POLICE(44) I 1 FIRE(8) I I PUBLIC WORKS(39) I !RECREATION&NATURALIST(9)1 'COMMUNITY DEVELOPMENT(10)1 Finance Director-Treasurer Assistant City Manager- Fire Chief Director of Public Works Director of Recreation&Nat Director of Community Develop Secretary Public Safety Director- Dep Fire Chief Oper Analyst Sr Citizen Program Coordinator Secretary Staff Accountant Civil Defense Director (3)Firefighter Secretary Secretary Accountant Secretary Secretary BUILDING INSPECTION(3) Acctg-Data Proc Clerk Dep Pub Safety Dir ENGINEERING(4) NATURALIST(4) Chief Bldg Official N Receptionist-Uc Clerk Lieutenant Asst Public Works Dir Nat Res Coordinator MechBldg Inspector (4)Sergeant Engineering Tech (2)Interpretive Specialist Secretary ACCOUNTING(8) (3)Corporal Engineering Aide-Admin Receptionist/Cierk Typist Asst Finance Director (23)Patrol Officer Engineering Tech/inspector PLANNING(S) Accounting Specialist Pub Sity Projects Coor RECREATION(2) Planning Coordinator Utility Billing Clk (2)Crime Prey Spec PW MAINTENANCE(32) Program Supervisor Code Enf Officer-Plan Met General Accountant Office Supervisor Superintendent Program Specialist (2)Planning Assistant Acctg-Data Proc Clk (2)Senior Office Asst Secretary (1)Secretary Acctg-Data Proc Clk (4)Office Asst Street Foreman (8)PSW-D ASSESSING(3) (3)Mechanic,Level B Assessor (1)PSW-C Appraiser (1)PSW-B Assmt Clk/Appraiser Asst (1)PSW-A Water Foreman MIS(2) (1)PSW-D MIS Technician (2)PSW-C MIS Specialist (1)PSW-A Sewer Foreman CITY CLERK-RECORDS(2) (2)PSW-B City Clerk (2)PSW-A Records Retention Spec Park Foreman (8)PSW-D LIQUOR(4) LQ Store Manager Asst LO Store Manager (2)LQ Store Clerk 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 UTYOF FRIDLEY — FRIDLEY MUNICIPAL CENTER •6431 UNIVERSITY AVE. N.E. FRIDLEY, MN 55432•(612)571-3450• FAX (612)571-1287 May 29, 1992 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, 1991. — 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, - v/J�itiLl ir�ti:. �l fti-uuli�- William W. Bums City Manager 3 CITYOF FRIDLEY FRIDLEY MUNICIPAL CENTER•6431 UNIVERSITY AVE. N.E. FRIDLEY, MN 55432•(612)571-3450• FAX (612)571-1287 —' May 28, 1992 Mr. William W. Bums, City Manager Mayor William J. Nee and Council Members Fridley, Minnesota 55432 Dear Mr. Bums, Mayor Nee and Council Members: The Comprehensive Annual Financial Report of the City of Fridley, Minnesota, for the fiscal year ending December 31, 1991, 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 1990. It is our belief that the accompanying fiscal year 1991 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. Section IV is the statistical section which includes the previous year's financial and non-financial data. 5 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 construction projects including sealcoating of 6 miles of City streets, construction of new water mains to increase fire flows, improvements to the Springbrook Nature Center entrance, Little League Parking lot, the liquor store parking lot and adjacent — street, and widening of 73rd Avenue. Internally, the City progressed on a number of projects, most notably in the management information area The proposals for a new computer system were analyzed, computer demonstrations were attended and ultimately HTE, Inc. of Orlando, Florida was selected. Training and installation of equipment was substantially completed in 1991 and a January 1, 1992 implementation date for the general ledger, accounts payable and payroll was planned. Parallel testing of many of the accounting activities was completed in the past year prior to live implementation. In addition to the new computer system, installation of a new liquor inventory control system was a significant accomplishment of the past year. This system provides better information for management of the liquor inventory consistent with the goal of improving profitability. Also implemented in 1991 was a computer-controlled fuel and parts inventory system in the municipal garage. This inventory program monitors fuel usage and keeps inventories at minimum levels. Other notable initiatives during the year included: preparation for and issuance of improvement and water revenue bonds; implementation of a separate fund to account for the City's solid waste programs including the recycling pickup program and operation of the yard waste transfer site; completion of an informal sewer policy survey and analysis and implementation of necessary sewer rate increases; implementation of the 1990 liquor study recommendations including establishment of specific financial goals and objectives with periodic evaluation, improvement in the appearance of the liquor stores and 6 CITY OF FRIDLEY, MINNESOTA GENERAL INFORMATION (CONTINUED) MAJOR INITIATIVES (CONTINUED) undertaking various marketing and promotional plans; and increasing the curbside recycling program's — tonnage by 53% from 895 tons in 1990 to 1,370 tons in 1991. We were also honored to receive the Distinguished Budget Presentation Award for our 1991 Budget — for the third 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 and shortfalls in state revenues have and will continue to have a trickle down effect .., to lower levels. Cities are faced with the problems of financing their own traditional levels of service while simultaneously coping with cuts in intergovernmental revenues and the implementation of both federal and state mandates. Strategic planning sessions to deal with various magnitudes of potential cutbacks in state aids to the City were held in 1991 and included issues such as new revenue sources, — prioritization of program cutbacks and delay of capital outlay expenditures. Since the 1991 year-end, the state legislature imposed the state sales tax on city purchases effective June 1, 1992 which is a new twist from previous revenue cutbacks. A study of the existing fees and administrative charges to .... other funds will be completed in 1992 which, combined with the previous strategic planning sessions, will provide various options for dealing with potential future cutbacks. Internally, we continue to review our operation and to make changes to improve effectiveness and efficiency. As discussed above, a new computer system was selected and tested in 1991 and substantially all applications are scheduled for a staged implementation in 1992. As of this writing, the payroll, accounts payable and general ledger systems have been successfully implemented. Scheduled ,.., for later 1992 implementation is the utility billing system and the cash receipting system. Two ongoing goals are to learn the report writer capabilities on the new system to design reports tailored for the needs of the various users and to utilize the system's budgeting module. Also in the computer area, increased familiarity with the capabilities of the liquor inventory control system should facilitate the trend towards increased profitability in the liquor stores as should the continuing program of various marketing and promotion plans. .... Significant projects for 1992 budgeted in the 5 year capital improvement plan include: replacement of one half of the Municipal garage roof; upgrading of municipal park parking lots; construction of a new beach house at Moore Lake; upgrading of the Little League park building and improvements to the Springbrook Nature Center; and annual sealcoating, well, reservoir and pump house maintenance programs. In addition, negotiations are in progress for the possible construction of a senior center in partnership with neighboring cities and repair of the Locke Lake Dam using a combination of grants, loans and special assessments. 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. OEM 7 CITY OF FRIDLEY, MINNESOTA GENERAL INFORMATION (CONTINUED) FINANCIAL INFORMATION — INTERNAL CONTROLS (CONTINUED) All internal control evaluations occur within the above framework. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of the proper recording of financial transactions. — BUDGETARY CONTROLS A complete budgetary system of accounts is maintained for the General and Special Revenue Funds. Budgetary control is maintained in compliance with the City Charter Requirements. The Charter provides that it is the duty of the City Manager to strictly enforce the provisions of the budget. The — management policy of the City is such that the existence of a particular item or appropriation in the approved budget does not mean that it will or must be automatically expended. It is the policy of the City to control budgets at the expenditure category level. Budget adjustments between City divisions are made upon the approval of a resolution by the City Council. The City Charter provides that the City — Council shall not have power to increase the total amount of the budget, whether by insertion of new items or otherwise, beyond the estimated revenue unless the actual revenue exceeds such revenue estimates, and in that event not beyond such actual revenue. There is a constant review process. — Expenditures are not approved until it has been determined that 1) the expenditure is necessary, 2) adequate funds have been appropriated, and 3) funds are available. CASH MANAGEMENT All temporary cash surpluses during the year are invested in various securities which State statutes — permit The City's policy is to invest all available monies at competitive interest rates in accordance with the City's over-all fiscal plan coordinated with operating needs and programs projected over the ensuing 12 month period. Investment yields on investments held during the year ranged from 5.7% to 12.5%. DEBT ADMINISTRATION Net general bonded debt per capita, and the percentage of the net general bonded debt to taxable value are useful indicators of the City's debt position. At December 31, 1991 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 totalling $17,715,000. Of this outstanding debt,$3,810,000 represents special assessment debt with government commitment, $9,485,000 represents general obligation tax increment refunding bonds, $2,805,000 relates to tax increment issues — supported by revenue from the established tax increment areas and $1,615,000 represents general obligation water revenue bonds. During 1991, the city issued $1,020,000 of general obligation bonds to finance various improvement projects completed and assessed against benefitted property. In addition, $1,615,000 of general obligation water revenue bonds were issued in 1991 to finance various — water utility improvements. These bonds are secured by the full faith and credit and taxing powers of the City and the net revenues of the City's water utility. — The City of Fridley has, since 1982, maintained a credit rating of a Aa1 on its long-term bonds. 8 CITY OF FRIDLEY, MINNESOTA FINANCIAL INFORMATION (CONTINUED) FISCAL DISPARITIES The commonly referred to 'Fiscal Disparity Law' was adopted by the Legislature in 1971. The area of " the fiscal disparity district encompasses all the properties located within the seven-county metropolitan area The law provides that 40% of all new commercial/industrial property valuations or growth be placed in an 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. GENERAL GOVERNMENT FUNCTIONS The following schedule presents a summary of the General, Special Revenue, Debt Service, Capital Projects and Expendable Trust Funds' revenues for the fiscal year ended December 31, 1991. Percent Increase/ Revenues Amount of Total (Decrease) Taxes and special assessments $7,301,508 48.70% $401,419 Licenses and permits 425,023 2.83% 16,057 Intergovernmental 3,445,972 22.98% (118,454) Charges for services 784,962 5.23% 154,947 Fines and forfeits 286,159 1.91% 26,395 Interest on i,nvestments 2,385,209 15.91% 265,237 Miscellaneous 365,131 2.44% 168,625 Total $14,993,964 100.00% $914,226 9 CITY OF FRIDLEY, MINNESOTA FINANCIAL INFORMATION (CONTINUED) — GENERAL GOVERNMENT FUNCTIONS (CONTINUED) 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. Increased special assessments and tax increment projects of prior years account for most of the large increase in the tax and special assessment category. The intergovernmental category decline is due to a combination of state cutbacks in local government aid of approximately $234,000 in the general fund and increased _ state aid for streets in Capital Projects Funds. In general, the increased revenue from charges for services is attributable to efforts to increase other revenues in the general fund including administrative charges to other funds, fire impact fees and other fees. In addition, increased and new fees were experienced for recycling and yard waste disposal fees in the Solid Waste Abatement Fund. Interest on investments was up significantly due to increased fund balances,favorable investment performance and incorporating an investment management charge to other funds in the investment income allocation process. Miscellaneous income was up due to increased gambling tax receipts in the general fund and — a more significant increase in the miscellaneous revenue category in the HRA capital project fund due to settlement on mortgages. The following schedule presents a summary of the General, Special Revenue, Debt Service, Capital Projects and Expendable Trust Funds' expenditures for the fiscal year ended December 31, 1991. Percent Expenditures Amount of Total Increase Current: General government $2,566,435 20.82% $92,887 Public safety 3,233,501 26.23% 224,801 Civic center 165,968 1.35% (7,292) Public works 2,213,994 17.95% 105,267 Community development 422,381 3.43% (61,530) Recreation and naturalist 655,985 5.32% 14,553 Debt service 1,866,305 15.13% (13,922,864) Capital outlay 1,204,077 9.77% (1,423,688) Total $12,328,646 100.00% ($14,977,866) The most significant decreases are in the debt service and capital outlay categories. The significant decline in debt service from 1990 to 1991 is attributable to a 1990 refunding of variable rate bonds in the principal amount of $13,620,000. The large decline in capital outlay expenditures is explained by less activity in the special assessment funds and capital improvement fund but is mostly attributable — to a marked decrease in tax increment capital expenditures down from the large outlays of 1990. After factoring out debt service and capital outlay, the overall increase in other categories is 4% which is reflective somewhat of inflation on city expenditures. However, a more detailed analysis among _ categories indicates that the public safety increase reflects decreased personal services expenditures in 1990 due to turnover that were filled in 1991. The public works category reflects increased amounts spent for sealcoating and capital outlay in 1991 and additional overtime attributable somewhat to large snowfall in the latter part of 1991. The decline in the Community Development category is due to the — Planning Coordinator position not being filled in 1991. 10 CITY OF FRIDLEY, MINNESOTA FINANCIAL INFORMATION (CONTINUED) GENERAL GOVERNMENT FUNCTIONS (CONTINUED) General Fund Balance The fund balance is used to provide working capital for the fund until tax settlements and state aids are received in July and December of each year,to provide funds for unknown events which could have an adverse effect on the fund, and to help finance future budgets. In 1990 the City Council adopted a formal policy designating portions of the general fund's fund balance for working capital, subsequent years expenditures, contingencies and for replacement of fixed assets at the end of each fiscal year. ENTERPRISE OPERATIONS The enterprise funds account for the financing of services to the general public in which all or most of the costs involved are paid in the form of charges by the users of such services. In the City of Fridley, Enterprise Funds are used to account for the operation of the public utility system and 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 $1,112,630 on December 31, 1991 as compared to$997,514 at the closing of the last fiscal year. Income before operating transfers increased to $165,116 in 1991 from $113,472 in the previous year. Public Utility Fund .. This fund accounts for the operation and financing if the City-owned sewer and water systems. Included in the assets of the fund is a receivable from the Metropolitan Waste Control Commission of $190,412 which 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. 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, 1990 and 1991. 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, 1991 were $10,102,711 compared to $9,722,181 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. 11 CITY OF FRIDLEY, MINNESOTA — 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. 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 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, 1990. 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. 12 CITY OF FRIDLEY, MINNESOTA OTHER INFORMATION (CONTINUED) 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 Tjornhom, Sharon Felting, Paul Hansen and Marcy Everette and to our auditors 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, L•mdt.D. 1)01;4SA•243•44Q Richard D. Pribyl David J. DuBord Finance Director Assistant Finance Director 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, 1990 _ 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. f,� : AO> m : r President caraanan seat. G au. Executive Director 15 T FINANCIAL SECTION AUDITOR'S OPINION MIN TAUTGES, REDPATH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS 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, 1991 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, 1991, 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 financial 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 fmancial statements of the City of Fridley, Minnesota. Such information,except for that portion marked"unaudited",on which we express ._ no opinion,has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and,in our opinion,is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. "'• May 15, 1992 "LIPP114 f�- ,cam. TAUTGES,REDPATH&CO.,LTD. 1 Certified Public Accountants 17 4810 White Bear Parkway • White Bear Lake, Minnesota 55110 • 612/426-7000 • FAX/426-5004 • 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, 1991 Governmental Fund Types Special Debt Capital — General Revenue Service Projects Assets Cash and cash equivalents $330 $10,000 $419 $1,022,332 Investments 6,902,800 114,111 11,150,930 13,436,982 Receivables: — Accounts 7,551 26,079 17,298 Taxes 415,231 514,415 Special assessments 14,605 2,923,509 110,219 — Mortgage 952,000 Interest 929,005 172,889 Due from other funds 14,125 2,958 43,503 — Due from other governments 48,649 38,266 Inventories, at cost 22,975 Prepaid items 48,171 — 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 $8,403,442 $191,414 $14,074,858 $16,269,638 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 1991 1990 $2,295,484 $90,535 $ $ $ $3,419,100 $3,397,189 3,621,077 65,068 35,290,968 30,273,418 804,868 2,082 857,878 739,763 1,438 931,084 665,302 3,048,333 3,513,380 952,000 993,960 1,101,894 1,054,614 2,568,657 2,629,243 1,408,454 18,946 105,861 165,882 320,592 343,567 335,555 -.. 164,359 163 212,693 219,381 190,412 190,412 210,424 3,706,214 3,706,214 3,031,006 18,455,183 27,313,817 45,769,000 44,262,076 11,132,454 11,132,454 10,418,754 4,967,546 4,967,546 5,346,246 $25,870,921 $2,659,355 $3,774,802 $27,313,817 $16,100,000 $114,658,247 $106,035,404 21 CITY OF FRIDLEY, MINNESOTA COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS(CONTINUED) — December 31, 1991 Governmental Fund Types Special Debt Capital General Revenue Service Projects Liabilities,fund equity and other credits Liabilities Accounts payable $138,253 $22,362 $419 $27,437 Deposits payable 1,560 10,000 103,141 Contracts payable 34,214 — Salaries payable 55,340 360 Compensated absences payable Deferred revenue 326,222 2,920,572 1,563,785 — Due to other funds 1,776,756 25,535 21,413 805,435 Due to other governments 1,715 180,168 Bonds payable — Other liabilities Total liabilities 2,299,846 58,257 2,942,404 2,714,180 Fund equity and other credits Contributed capital Investment in general fixed assets Retained earnings- Reserved Unreserved _ Fund balance: Reserved 331,432 955 3,475,448 6,590,670 Unreserved- _ Designated 5,007,092 132,202 7,104,222 Undesignated 765,072 7,657,006 (139,434) — Total equity and other credits 6,103,596 133,157 11,132,454 13,555,458 Total liabilities, equity and other credits $8,403,442 $191,414 $14,074,858 $16,269,638 _ 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 1991 1990 $168,942 $697 $ $ $ $358,110 $299,849 3,748,568 3,863,269 3,197,845 153,570 187,784 187,100 5,413 9,200 70,313 262,458 1,005,971 1,005,971 992,875 4,810,579 5,133,112 104 2,629,243 1,408,454 87,340 7,501 276,724 186,514 1,615,000 16,100,000 17,715,000 15,765,000 43,412 75,000 118,412 2,073,677 1,090,868 3,756,173 0 16,100,000 31,035,405 27,433,207 12,581,903 1,000,000 13,581,903 13,858,573 27,313,817 27,313,817 26,440,178 2,291,080 568,487 2,859,567 1,406,737 8,924,261 8,924,261 9,777,166 10,398,505 9,316,953 12,243,516 11,531,039 18,629 8,301,273 6,271,551 23,797,244 1,568,487 18,629 27,313,817 83,622,842 78,602,197 $25,870,921 $2,659,355 $3,774,802 $27,313,817 $16,100,000 $114,658,247 $106,035,404 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. 1991 Governmental Fund Types Special Debt General Revenue Service - Revenues: Taxes $3,704,876 $ $ Special assessments 2,166 770,576 Licenses and permits 342,713 82,310 - Intergovernmental revenue 2,820,558 307,061 Charges for services 693,661 91,301 Fines and forfeits 238,906 47,253 - Interest on investments 521,352 8,402 889,311 Miscellaneous 124,656 816 Total revenues 8,448,888 537,143 1,659,887 - Expenditures: Current - General government 1,498,935 370,763 Public safety 3,233,501 35,735 Municipal center 165,968 Public works 2,031,122 Community development 422,381 Recreation and naturalist 655,985 Debt service 1,866,305 Capital outlay 381,469 80,715 Total expenditures 8,389,361 487,213 1,866,305 Excess(deficiency)of revenues over expenditures 59,527 49,930 (206,418) - Other financing sources(uses): Bond proceeds 31,363 Operating transfers in 370,700 1,081,374 Operating transfers out (20,823) (5,000) (192,619) Payment to Refunded Bond Escrow Agent Total other financing sources(uses) 349,877 (5,000) 920,118 Excess(deficiency)of revenues and other financing sources over expenditures and other financing uses 409,404 44,930 713,700 - Fund Balance January 1 5,694,192 88,227 10,418,754 Residual Equity Transfers in Residual Equity Transfers out Fund Balance December 31 $6,103,596 $133,157 $11,132,454 See Accompanying Notes to Financial Statements 24 Exhibit A-2 Fiduciary Fund Type Totals Capital (Memorandum Only) Projects Trust 1991 1990 $2,734,961 $ $6,439,837 $6,136,537 88,929 861,671 771,256 425,023 408,966 318,353 3,445,972 3,556,722 784,962 630,015 ... 286,159 259,764 961,053 5,091 2,385,209 2,119,972 239,659 365,131 196,506 4,342,955 5,091 14,993,964 14,079,738 661,002 2,530,700 2,473,548 3,269,236 3,008,700 165,968 173,260 182,872 2,213,994 2,108,432 422,381 484,206 655,985 641,432 1,866,305 15,789,169 741,893 1,204,077 2,627,765 1,585,767 0 12,328,646 27,306,512 2,757,188 5,091 2,665,318 (13,226,774) 977,417 1,008,780 9,394,489 261,600 1,713,674 1,482,076 (1,335,681) (9,898) (1,564,021) (1,305,967) (9,257,980) (96,664) (9,898) 1,158,433 312,618 2,660,524 (4,807) 3,823,751 (12,914,156) 10,894,934 23,436 27,119,543 41,033,699 14,409 (1,014,409) $13,555,458 $18,629 $30,943,294 $27,119,543 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. 1991 _ With comparative totals for year ended December 31, 1990 General Fund Variance Favorable - Budget Actual (Unfavorable) Revenues: Taxes $3,773,838 $3,704,876 ($68,962) - Special assessments 1,495 2,166 671 Licenses and permits 348,748 342,713 (6,035) Intergovernmental revenue 3,063,886 2,820,558 (243,328) - Charges for services 699,004 693,661 (5,343) Fines and forfeits 272,147 238,906 (33,241) Interest on investments 205,166 521,352 316,186 - Miscellaneous 70,232 124,656 54,424 Total revenues 8,434,516 8,448,888 14,372 Expenditures: Current General government 1,615,808 1,498,935 116,873 - Public safety 3,306,428 3,233,501 72,927 Municipal center 171,369 165,968 5,401 Public works 2,164,124 2,031,122 133,002 Community development 477,510 422,381 55,129 Recreation and naturalist 709,320 655,985 53,335 Reserve for contingency 238,413 238,413 Capital outlay 570,192 381,469 188,723 Total expenditures 9,253,164 8,389,361 863,803 Excess(deficiency)of revenues over _ expenditures (818,648) 59,527 878,175 Other financing sources(uses): Operating transfers in 370,700 370,700 Operating transfers out (20,823) (20,823) _ Total other financing sources(uses) 349,877 349,877 Excess(deficiency)of revenues and other financing sources over expenditures - and other financing uses (468,771) 409,404 878,175 Fund balance January 1 5,694,192 5,694,192 - Residual equity transfer in(out) Fund Balance December 31 $5,225,421 $6,103,596 $878,175 See Accompanying Notes to Financial Statements - 26 Exhibit A-3 Totals - Special Revenue Fund Types (Memorandum Only) Variance Variance- - Favorable Favorable 1990 Budget Actual (Unfavorable) Budget Actual (Unfavorable) Actual $ $ $ $3,773,838 $3,704,876 ($68,962) $3,552,142 1,495 2,166 671 1,288 70,000 82,310 12,310 418,748 425,023 6,275 408,966 -_ 326,457 307,061 (19,396) 3,390,343 3,127,619 (262,724) 3,377,958 80,836 91,301 779,840 784,962 5,122 630,015 47,253 47,253 319,400 286,159 (33,241) 259,764 _ 3,197 8,402 5,205 208,363 529,754 321,391 373,578 11,781 816 (10,965) 82,013 125,472 43,459 100,132 539,524 537,143 (2,381) 8,974,040 8,986,031 11,991 8,703,843 - 437,893 370,763 67,130 2,053,701 1,869,698 184,003 1,761,474 35,735 35,735 3,342,163 3,269,236 72,927 3,008,700 171,369 165,968 5,401 173,260 2,164,124 2,031,122 133,002 1,967,166 - 477,510 422,381 55,129 484,206 709,320 655,985 53,335 641,432 238,413 238,413 - 90,431 80,715 9,716 660,623 462,184 198,439 410,196 564,059 487,213 76,846 9,817,223 8,876,574 940,649 8,446,434 (24,535) 49,930 74,465 (843,183) 109,457 952,640 257,409 370,700 370,700 203,409 (5,000) (5,000) (25,823) (25,823) (5,948) - (5,000) (5,000) 344,877 344,877 197,461 (29,535) 44,930 74,465 (498,306) 454,334 952,640 454,870 - 88,227 88,227 5,782,419 5,782,419 6,327,549 (1,000,000) $58,692 $133,157 $74,465 $5,284,113 $6,236,753 $952,640 $5,782,419 • 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, 1991 With Comparative Totals for Year Ended December 31, 1990 Proprietary Fund Types Totals - Internal (Memorandum Only) Enterprise Service 1991 1990 Sales and cost of sales: - Sales $2,787,205 $ $2,787,205 $2,492,863 Cost of sales 2,219,230 2,219,230 2,002,681 Gross profit 567,975 0 567,975 490,182 - Operating revenues: Water sales and sewer rents 3,011,473 3,011,473 2,926,154 - Other 103,964 143,383 247,347 181,225 Charges for services 252,799 Total operating revenues 3,115,437 143,383 3,258,820 3,360,178 - Operating expenses: Personal services 957,192 57,429 1,014,621 1,024,496 Supplies and other charges 2,328,613 92,823 2,421,436 2,492,438 - Capital outlay 1,530 1,530 Depreciation 584,378 584,378 533,257 Total operating expenses 3,870,183 151,782 4,021,965 4,050,191 - Operating(loss) (186,771) (8,399) (195,170) (199,831) Non-operating revenues(expenses): - Interest on investments 542,061 212,678 754,739 570,697 Debt service (148,449) Loss on reclassification of assets (741) - Other 2,000 2,000 4,017 Total non-operating revenues (expenses) 395,612 212,678 756,739 573,973 - Income before operating transfers 208,841 204,279 561,569 374,142 - Operating transfers in 347 347 Operating transfers out (50,000) (100,000) (150,000) (176,109) Total operating transfers (49,653) (100,000) (149,653) (176,109) - Net income 159,188 104,279 411,916 198,033 Credit arising from transfer of - depreciation on contributed capital 336,458 336,458 335,927 Retained earnings January 1 10,719,695 1,464,208 12,183,903 10,649,943 - Retained earnings December 31 $11,215,341 $1,568,487 $12,932,277 $11,183,903 See Accompanying Notes to Financial Statements 28 CITY OF FRIDLEY. MINNESOTA Exhibit A-5 COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES Year Ended December 31, 1991 With Comparative Totals for Year Ended December 31, 1990 Proprietary Fund Types Totals Internal (Memorandum Only) Enterprise Service 1991 1990 Cash flows from operating activities: Operating income(loss) ($186,771) ($8,399) ($195,170) ($199,831) Adjustments to reconcile operating income(loss)to net cash flows from operating activities: Depreciation 584,378 584,378 533,257 Changes in assets and liabilities: Decrease(increase) in receivables (86,651) 3,424 (83,227) 44,505 Decrease(increase) in due from other funds (1,199,127) (1,199,127) (1,365,875) Decrease(increase)in inventories (5,684) (5,684) (40,982) Decrease(increase) in prepaid items (17,009) (17,009) 18,021 _ Increase(decrease) in payables 217,293 95,120 312,413 (115,094) Net cash flows from operating activities 505,556 (1,108,982) (603,426) (1,125,999) - Cash flows from non-capital financing activities: Contributed capital from General Fund 1,000,000 Operating transfers in 347 347 Operating transfers out (50,000) (100,000) (150,000) (176,109) Other non-operating revenue 2,000 2,000 4,017 Net cash flows from non-capital financing activities: (47,653) (100,000) (147,653) 827,908 Cash flows from capital and related financing activities: - Acquisition and construction of fixed assets (1,157,875) (1,157,875) (1,436,157) Proceeds from sale of revenue bonds 1,615,000 1,615,000 Interest and paying agent fees on revenue bonds (148,449) (148,449) - Net cash flows from capital and related financing activities 308,676 0 308,676 (1,436,157) Cash flows from investing activities: - Interest on investments 533,313 212,678 745,991 561,248 Interest received from MWCC 8,748 8,748 9,449 Net cash flows from investing activities 542,061 212,678 754,739 570,697 Net increase(decrease)in cash and cash equivalents 1,308,640 (996,304) 312,336 (1,163,551) Cash and cash equivalents-January 1 986,844 1,086,839 2,073,683 3,237,234 - Cash and cash equivalents-December 31 $2,295,484 $90,535 $2,386,019 $2,073,683 Non-cash investing, capital and financing activities: -- System assets of$15,603 were contributed by the Capital Projects Special Assessment Fund to the Public Utility Enterprise Fund in 1991. - See Accompanying Notes to Financial Statements 29 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1991 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. 1991 1. Summary 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, 1991 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, 1991 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 City Charter. Upon adoption of the annual budget resolution by the Council, it becomes the formal appropriation budget for City operations. All budget adjustments must be approved by the Council. The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes expenditures and the means of financing them. 33 CITY OF FRIDLEY. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) — DECEMBER 31, 1991 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 a resolution. 4. The City Council may authorize transfer of budgeted amounts between departments within any fund. 5. Reported budget amounts are as originally adopted or as amended by Council — approved transfers. The City Charter limits appropriations to the total estimated revenues and fund balances. If actual revenues exceed the original estimates, appropriations may be increased by the Council up to the amount of revenue increases. -- There were no supplemental appropriations required or made during the year. 6. All budget amounts lapse at the end of the year to the extent they have not been — expended or encumbered. Encumbrances are reappropriated into the following year's budget. 7. 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. — 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. 34 CITY OF FRIDLEY, MINNESOTA - NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1991 1. Summary of Significant Accounting Policies (Continued) F. Assets, Liabilities and Fund Equity (Continued) 1) Cash and Cash Equivalents, and Investments (Continued) The allocation 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 internal service funds. This is classified as an interfund payable in the fund receiving the advance and as an offsetting interfund receivable in the internal service funds. 2) Receivables Property Taxes The property tax levy was set by the City Council in November and was certified to the County for collection the following year. In Minnesota, counties act as collection agents for all property taxes. The County spreads the levies over all taxable property in the City. Such taxes become receivables of the City as of January 1. Property taxes are payable in equal installments by property owners to the County as follows: Personal property - February 28 and June 30 Real property - May 15 and October 15 The County remits the collections to the City and other taxing districts four times a year, in January, April, July and December. During 1991 taxes were adjusted downward $99,573 by Anoka County due to abatements and court ordered settlements. amok 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 1991, the 1990 tax levy plus state paid aids was increased 3% for inflation and an additional 1.006% for the percentage increase in households. The levy was then reduced by the amount of the City's 1990 Local Government Aid reduction to arrive at the City's 1991 Levy Limit. Levies for bonded indebtedness are not limited by the law. — Taxes payable on homestead property (as defined by State Statutes) are partially reduced by Homestead and Agriculture Credit Aid. This aid is paid to the City by the State in lieu of taxes levied against homestead property. The State remits this aid in _ two equal installments in July and December each year. 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, 1991 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 '" future years. 3) Inventories — Inventory in the General Fund consists of expendable supplies held for consumption and is recorded at cost on a first in first out basis. The cost is recorded as an expenditure at the time individual inventory items are used. Reported inventories are equally offset by a fund balance reserve which indicates that they do not constitute 'available spendable resources' even though they are a component of net current assets. — Proprietary Funds inventory items are expensed at the time they are sold or used. (Consumption method). Liquor inventories are recorded on the average cost basis. 4) Property and Equipment/General Fixed Assets All fixed assets are recorded at historical cost or estimated historical cost, if the original — cost was not available. Donated fixed assets are carried at the fair market value on the date donated. — Additions to general fixed assets for general City purposes, including public domain (infrastructure) fixed assets are recorded as expenditures of the applicable fund in the year in which the fixed asset was purchased or constructed, and are capitalized in the General Fixed Asset Account Group. Depreciation is not recorded on these assets. — 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, 1991 1. Summary of Significant Accounting Policies (Continued) F. Assets, Llabilitles and Fund Equity (Continued) 4) Property and Equipment/General Flied 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, 1991 1. Summary of Significant Accounting 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. 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 1990 amounts have been reclassified to conform to the 1991 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. 38 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1991 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, 1991 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 $940,163 $524,911 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 $940,163 $524,911 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. 1991 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 $9,241,769 $9,241,769 $10,102,636 U.S. Government agencies or instrumentalities 20,638,888 20,638,888 21,838,025 Commercial paper 4,314,587 4,314,587 4,314,587 Repurchase agreements 1,696,621 1,696,621 1,696,621 $34,195,244 $1,696,621 Investment in money — market fund(at market) 233,892 233,892 Investment in mutual fund 2,055,228 2,055,228 Investment in deferred — compensation plan (at market) 3,706,214 3,706,214 Total investments $41,887,199 $43,947,203 40 . CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1991 2. Deposits and Investments (Continued) Cash and Cash Equivalents and Investments per accompanying financial statement: Cash and cash equivalents $3,419,100 Investments 35,290,968 Total $38,710,068 3. Special Assessments Receivable Special assessments receivable at December 31, 1991 are as follows: Special Special Assessment Assessment Capital General Debt Service Projects Total Unremitted $823 $3,170 $136 $4,129 Delinquent 10,097 203,660 2,007 215,764 Deferred 3,685 2,716,679 108,076 2,828,440 Total $14,605 $2,923,509 $110,219 $3,048,333 41 CITY OF FRIDLEY. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) — DECEMBER 31. 1991 4. Due From Other Governments Amounts due from other governments at December 31, 1991 are as follows: General Fund: State of Minnesota: a) State Aid Mainenance $662 Anoka County: a) Fines and Forfeits 17,161 b) Gas Reimbursement 141 City of New Brighton 1,634 City of Mounds View 792 City of Hilltop 27,080 City of St. Anthony 456 -" School District#14 723 Total General Fund $48,649 Special Revenue Funds: State of Minnesota-Section 8 Housing 3,201 — Anoka County: a) Community Development Block Grant 15,703 b) Recycling 19,362 — Total Special Revenue Funds $38,266 Enterprise Funds: — Utility Funds: Metropolitan Waste Control Commission (MWCC) - — Current portion of amounts due from MWCC $18,946 Non-current portion -long term receivable of amounts due from MWCC $190,412 -- 42 CITY OF FRIDLEY. MINNESOTA -' NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1991 4. Due From Other Governments (Continued) The non-current receivable of $190,412 in the Utility Enterprise Fund is comprised of: 1. The balance due for the sale of the City's sewer interceptors is$181,538 (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 $8,874, 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, 1991 Additions Deletions Dec 31, 1991 Land $1,976,302 $125,312 $2,101,614 Buildings 4,510,618 4,592 $4,515,210 Improvements other than buildings 15,328,066 125,870 $15,453,936 Machinery and equipment 4,625,192 575,423 266,306 $4,934,309 Construction in progress 308,748 $308,748 Total $26,440,178 $1,139,945 $266,306 $27,313,817 43 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) — DECEMBER 31. 1991 6. Summary of Proprietary Fund Property and Equipment A summary of proprietary fund type property, plant and equipment at December 31, 1991 follows: Enterprise Public Liquor Utilities Total Land $66,961 $154,531 $221,492 Buildings 179,764 1,524,072 1,703,836 Improvements other than — buildings 76,320 4,234,441 4,310,761 Machinery and equipment 239,174 2,267,717 2,506,891 Water and sewer lines 16,944,533 16,944,533 562,219 25,125,294 25,687,513 Less: Accumulated depreciation (240,985) (6,991,345) (7,232,330) — Net property and equipment $321,234 $18,133,949 $18,455,183 7. Long-Term Debt — The following is a summary of long-term debt transactions of the City for the year ended December 31, 1991: Bonds payable at January 1, 1991 $15,765,000 Bonds issued 2,635,000 Bonds retired (685,000) Bonds payable at December 31, 1991 $17,715,000 ._ 44 CITY OF FRIDLEY. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1991 7. Lona-Term Debt (Continued) Bonds payable at December 31, 1991 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% $ 100 $1,755,000 Special Assessment Bonds of 1980 due in varying annual installments of$25,000-$50,000 through February 1, 2001; interest at 7.50% - 8.40% 300 $1,425,000 Special Assessment Bonds of 1982 due in varying annual installments of$15,000-$90,000 through February 1, 1999; interest at 9.40% - 10.70% 300 $2,705,000 Refunding Improvement Bonds of 1986 due in varying annual installments of $180,000 - $290,000 through February 1, 2000; interest at 6.00% - 7.40% 2,090 $4,070,000 Tax Increment Revenue Refunding Bonds of 1985 due in varying annual installments of $265,000 - $460,000 through February 1, 1999; interest at 6.75% - 9.00% 2,805 $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 $1.020,000 Special Assessment Bonds of 1991 in varying annual installments of $35,000-$90,000 through February 1, 2005; interest at 5.6% - 6.6% 1.020 Subtotal General Long-Term Debt 16.100 Water Revenue Bonds: $1,615,000 General Obligation Water Revenue Bonds of 1991 in varying annual installments $35,000 - $140,000 through February 1, 2011; interest at5.% - 6.8% 1,615 Total Bonds Payable $17,715 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. The City issued $1,020,000 General Obligation Improvement Bonds of 1991, dated January 1, 1991. The proceeds of the bonds were used to finance various improvement projects completed and assessed against benefitted property. At the same time, the City issued $1,615,000 General Obligation Water Revenue Bonds of 1991, the proceeds of which were used to finance various water utility improvements. In addition to the general obligation pledge of the City, not revenues of the City s water system are also pledged for payment of debt service on these kinds. 45 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) — DECEMBER 31. 1991 — 7. Long-Term Debt (Continued) Annual Requirements to Amortize Long-Term Debt December 31, 1991 — General Obligation Year Ending Special Water December 31 Assessment Redevelopment Revenue Total -- 1992 $604,013 $1,138,695 $138,228 $1,880,936 1993 673,403 1,137,714 146,005 $1,957,122 -- 1994 613,943 1,134,470 143,463 $1,891,876 1995 518,280 1,133,740 145,730 $1,797,750 1996 523,896 1,130,300 147,658 $1,801,854 — 1997-2001 2,056,445 5,495,830 733,835 $8,286,110 2002-2006 169,548 7,293,940 728,053 $8,191,541 2007-2011 4,267,300 730,500 $4,997,800 _ $5,159,528 $22,731,989 $2,913,472 $30,804,989 $11,132,454 is available in the Debt Service Fund to service the Special Assessment and Redevelopment Bonds. $5,134,648 is available in the Water Fund, a component of the Public Utility Enterprise Funds, to service the Water Revenue Bond debt service. 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, 1991, the legal debt margin was $20,608,392. 46 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1991 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, 1991, was $3,276,121 and $1,195,628, respectively; the City's total payroll was $5,520,446. 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. 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: 47 CITY OF FRIDLEY. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) — DECEMBER 31. 1991 8. Defined Benefit Pension Plans-Statewide (Continued) B. Contributions Required and Contributions Made (Continued) Statutory Rates: Required Employees Employer Rates PERF: Basic& Coordinated plans 4.44% 4.81% 10.04% PEPFF 8.00% 12.00% 17.56% Total contributions made by the City during fiscal year 1991 were: Percentage of Amounts Covered Payroll Employees Employer Employees Employer _ PERF: Basic& $38,228 $49,841 8.23% 10.73% ._ Coordinated plan 118,932 125,961 4.23% 4.48% PEPFF 95,650 143,475 8.00% 12.00% Total $252,810 $319,277 _ The City's contribution for the year ended June 30, 1991, to the PERF represented .17 percent of total contributions required of all participating entities. For the PEPFF, contributions for the year ended June 30, 1991, represented .54 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. 48 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1991 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, 1991, were as follows: Public Public Employees Employees Retirement Police& _ Fund Fire (PERF) (in millions) (PEPFF) Total pension benefit obligations $4,458 $733 Net assets available for benefits, at cost(Market values in millions) PERF=$3,663 PEPFF=$872 3,524 823 Unfunded(assets in excess of) pension benefit obligation $934 ($90) The measurement of the pension benefit obligation is based on an actuarial valuation as of June 30, 1991. Net assets available to pay pension benefits were valued as of -� June 30, 1991. 2. Changes in Benefit Provisions During the 1991 legislative session, benefit improvements were obtained for survivors of members in the Basic Plan and the Police and Fire Fund. In the Basic Plan, the maximum family death benefit was increased from $1,000 per month to 70 percent of the member's average salary. In the Police and Fire Fund, children's benefits were restored for families of disabled members who had chosen the joint and survivor annuity option before death. The effect of these changes increased the pension benefit obligation in the PERF by $4,016,869 and had essentially no effect on the pension benefit obligation in the PEPFF. 49 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) — DECEMBER 31, 1991 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, 1991. 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, 1991, 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 1991 contribution rate was 7.65% (6.2% is social security and 1.45% is medicare) — up to a maximum of $53,400 in wages. The cost of Social Security for 1991 was $188,745. 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 1991 cost for Medicare was $53,585. — 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$5,520,446. 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 $74,238 and $89,996 in State Aid to the Association for 1991 and 1990 respectively. — 50 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1991 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 1991 and as of December 31, 1991 the Association held no securities issued by the City or other related parties. 51 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1991 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, 1991 was $341,604; the City's total payroll was $5,520,446. — 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: Ante 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. 52 CITY OF FRIDLEY. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1991 - 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 Adlustment ("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 ONIM 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, 1991. 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. 53 CITY OF FRIDLEY. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) — DECEMBER 31. 1991 10. Defined Benefit Pension Plan - Fridley Police Relief Association (Continued) B. Funding Status and Progress (Continued) As of December 31, 1991, 1990 and 1989, (actuarial valuation dates), the unfunded pension benefit obligation was determined as follows: 1991 1990 1989 Pension Benefit Obligation: — Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $5,318,532 $5,248,980 $4,955,628 — Current employees-- Accumulated employee contributions including — allocated investment income 322,209 295,542 299,882 Employer financed 1,481,255 1,384,248 1,389,242 — Total Pension Benefit Obligation $7,121,996 $6,928,770 $6,644,752 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) 6,186,418 5,728,808 5,286,411 Unfunded Pension Benefit Obligation $935,578 $1,199,962 $1,358,341 Net assets available/Pension benefit obligation 86.86% 82.68% 79.56% Unfunded pension benefit obligation/ Annual covered payroll 273.88% 359.10% 381.50% Employer contributions/Annual covered payroll 47.77% 45.40% 53.30% — No changes in actuarial assumptions or benefit provisions that would significantly affect the valuation of the pension benefit obligation occurred during 1991. 54 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1991 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. -M 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 1991 amounted to $246,164, of which $50,252 and $26,623 were made by the City and its police officers respectively and of which $169,289 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, 1989. The contributions represent funding for normal cost of $85,822 and the amortization of the unfunded actuarial accrued liability of $111,169. Contributions made by the City, state and its police officers represent 15.1 percent, 50.9 percent and 8.0 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 1991 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, 1991 actuarial valuation and effective January 1, 1993 are$76,504 to amortize the unfunded actuarial accrued liability and$136,763 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. ammo • INEM 55 • CITY OF FRIDLEY. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1991 11. Interfund Receivables and Payables Interfund receivables and payables at December 31, 1991 are as follows: Interfund Interfund Receivables Payables Due From/Due To: — General Fund $14,125 $1,776,756 Special Revenue Fund s HRA Reimbursement Fund 2,958 2,500 — Grant Management Fund 13,319 Solid Waste Abatement Fund 9,716 Debt Service Funds _ Special Assessment Fund 21,413 Capital Projects Funds Capital Improvement Fund 19,590 _ Speical Assessment Fund 768,762 HRA Fund 23,913 36,673 Internal Service Funds _ Employee Benefits Fund 1,381,219 Self Insurance Fund 1,187,438 Agency Funds Hotel Motel Fund 104 $2,629,243 $2,629,243 56 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1991 — 12. Reserved Fund Balances/Retained Earnings The following reservations have been made of various fund balances/retained earnings at December 31, 1991. Fund Balance General Fund Reserved for: Encumbrances $260,285 Inventory 22,976 Prepaid items 48,171 $331,432 Special Revenue Funds Reserved for encumbrances $955 Debt Service Funds Reserved for Debt Service $3,475,448 Capital Projects Funds Reserved for: Encumbrances 59,938 Construction 6,530,732 6,590,670 Total Governmental Funds $10,398,505 Retained Earnings Enterprise Funds Public Utilities Funds Reserved for capital outlay $2,291,080 Internal Service Funds Employee Benefits Fund Reserved for employee benefits 366,211 Self-Insurance Fund Reserved for contingencies 202,276 Total Internal Service Funds $568,487 Total Proprietary Funds $2,859,567 57 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) — DECEMBER 31, 1991 — 13. Designated Fund Balance The following designations have been made of various fund balances at December 31, 1991: General Fund: Working Capital $3,113,463 ..., Subsequent Year's Expenditures 487,437 Contingencies 887,140 Replacement of Fixed Assets 519,052 — Total General Fund 5,007,092 Special Revenue Funds: — Cable TV Fund- Subsequent Year's Expenditures 4,466 Cable TV Program 107,489 — Grant Management Fund- Subsequent Year's Expenditures 669 Solid Waste Abatement Fund Solid Waste Abatement 8,060 -- Drug and Gambling Forfeiture Fund Drug and Gambling Enforcement 11,518 Total Special Revenue Funds 132,202 — Capital Projects Funds: Capital Improvement Fund- — Replacement of Fixed Assets 1,725,183 Park Improvement 1,092,696 Street Improvements 4,286,343 — Total Capital Project Fund 7,104,222 Total of Designated Fund Balances $12,243,516 -- 14. Contributed Capital — A reconciliation of contributed capital is as follows: Public Utility Self Insurance Enterprise Fund Internal Service Fund Balance January 1 $12,858,573 $1,000,000 — Increases — Current capital contributions 15,603 Adjustment 44,185 Decreases Depreciation of contributed _ assets (336,458) Balance December 31 $12,581,903 $1,000,000 — 58 CITY OF FRIDLEY. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1991 15. Seament 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, 1991 is as follows: Total Enterprise Liquor Utility Funds Sales(less cost of sales of$2,219,230) $567,975 $ $567,975 Operating revenues 3,115,437 3,115,437 Operating expenses (462,115) (3,408,068) (3,870,183) Operating income(loss) 105,860 (292,631) (186,771) Non-operating revenues (expenses)-net 59,256 336,356 395,612 Income before operating transfers 165,116 43,725 208,841 Operating transfers from(to)other funds (50,000) 347 (49,653) Net income $115,116 $44,072 $159,188 Depreciation expense included in operating expenses $19,204 $565,174 $584,378 Property and equipment- Additions 127,966 1,029,909 1,157,875 '- Deletions (13,378) (13,378) Working capital 791,396 5,940,253 6,731,649 Total assets 1,255,506 24,571,230 25,826,736 Fund equity- Contributed capital 12,537,718 12,537,718 Retained earnings 1,112,630 10,102,711 11,215,341 Total fund equity $1,112,630 $22,640,429 $23,753,059 Current capital contributions $15,603 $15,603 Bonds payable $1,615,000 59 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) — DECEMBER 31. 1991 16. 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. Plan assets are $3,706,214 stated at market on December 31, 1991 and are shown in the financial statements as 'Other assets' in the agency funds with a corresponding credit to 'Deposits payable'. — 17. Lltioation — 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. 18. 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. — 19. Deficit Balances — The following fund had a deficit balance at December 31, 1991: Capital Project Funds — Special Assessments (139,434) This deficit balance will be funded by a future General Obligation Improvement Bond Issue. 60 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1991 20. 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 1 257,692 959,426 701,734 0 701,734 1981 2 71,352 548,625 477,273 0 477,273 1982 3 254,067 1,530,622 1,276,555 224,881 1,051,674 1984 4 116,609 393,244 276,635 0 276,635 1984 5 30,294 42,359 12,065 0 12,065 1985 6 142,171 323,456 181,285 0 181,285 1986 7 10,960 139,068 128,108 0 128,108 1986 8 27,132 38,741 11,609 0 11,609 1989 9 1,045,007 1,029,856 0 0 0 1990 10 12,710 9,484 0 0 0 1,967,994 5,014,881 3,065,264 224,881 2,840,383 • All debt issued is pooled debt. Total bonds issued is $38,575,000. Total amount of bonds redeemed is $26,285,000. Outstanding bonds at December 31, 1991, is $12,290,000. All taxable value is currently'retained by the Housing and Redevelopment Authority. • 61 1 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, 1991 and 1990 1991 1990 -- Assets Cash and cash equivalents $330 $1,785 Investments 6,902,800 4,891,073 Receivables: Accounts 7,551 10,934 Taxes- Unremitted 102,791 28,659 Delinquent 312,440 293,536 Special Assessments- Unremitted 823 Delinquent 10,097 6,548 Deferred 3,685 7,533 Interest 929,005 958,699 Due from other governments 48,649 48,636 Due from other funds 14,125 37,452 Inventories, at cost 22,975 20,647 Prepaid items 48,171 72,031 Total assets $8,403,442 $6,377,533 Liabilities and Fund Balance Liabilities: Accounts payable $138,253 $140,290 Deposits payable 1,560 1,427 Salaries payable 55,340 233,872 Deferred revenue 326,222 307,617 Due to other governments 1,715 135 Due to other funds 1,776,756 Total liabilities 2,299,846 683,341 Fund balance: Reserved for encumbrances 260,285 322,412 Reserved for inventory 22,976 20,647 Reserved for prepaid items 48,171 72,031 Unreserved- Designated for working capital 3,113,463 3,201,683 Designated for contingencies 887,140 896,876 Designated for subsequent year's expenditures 487,437 373,683 Designated for fixed asset replacement 519,052 505,810 Undesignated 765,072 301,050 Total fund balance 6,103,596 5,694,192 Total liabilities and fund balance $8,403,442 $6,377,533 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, 1991 - With Comparative Actual Amounts for Year Ended December 31, 1990 1991 Variance Favorable 1990 Budget Actual (Unfavorable) Actual Revenues: Taxes $3,773,838 $3,704,876 ($68,962) $3,552,142 - Special assessments 1,495 2,166 671 1,288 Licenses and permits 348,748 342,713 (6,035) 334,141 Intergovernmental revenue 3,063,886 2,820,558 (243,328) 3,053,017 - Charges for services 699,004 693,661 (5,343) 630,015 Fines and forfeits 272,147 238,906 (33,241) 259,764 Interest on investments 205,166 521,352 316,186 367,776 Miscellaneous 70,232 124,656 54,424 99,532 Total revenues 8,434,516 8,448,888 14,372 8,297,675 Expenditures: Current- - General government 1,615,808 1,498,935 116,873 1,433,714 Public safety 3,306,428 3,233,501 72,927 3,008,700 Civic center 171,369 165,968 5,401 173,260 - Public works 2,164,124 2,031,122 133,002 1,967,166 Community development 477,510 422,381 55,129 484,206 Recreation and naturalist 709,320 655,985 53,335 641,432 _ Reserve for contingency 238,413 238,413 Capital outlay 570,192 381,469 188,723 354,954 Total expenditures 9,253,164 8,389,361 863,803 8,063,432 Excess(deficiency)of revenues over expenditures (818,648) 59,527 878,175 234,243 Other financing sources(uses): Operating transfers in 370,700 370,700 203,409 Operating transfers out (20,823) (20,823) (5,948) Total other financing sources(uses) 349,877 349,877 197,461 Deficiency of revenues and other financing sources over expenditures and other financing uses (468,771) 409,404 878,175 431,704 - Fund balance January 1 5,694,192 5,694,192 6,262,488 Residual Equity Transfers(out) (1,000,000) Fund balance December 31 $5,225,421 $6,103,596 $878,175 $5,694,192 -- 64 Exhibit B-3 - CITY OF FRIDLEY, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES- BUDGET AND ACTUAL - Year Ended December 31. 1991 With Comparative Actual Amounts for Year Ended December 31, 1990 1991 Variance Favorable 1990 Budget Actual (Unfavorable) Actual Taxes and special assessments: Current ad valorem taxes $3,700,307 $3,681,556 . ($18,751) $3,458,744 Delinquent ad valorem taxes 45,000 7,822 (37,178) 53,168 Penalties and interest 25,101 11,030 (14,071) 32,185 Forfeited sale-taxes 3,430 4,468 1,038 8,045 Special assessments 1,495 2,166 671 1,288 Total taxes and special - assessments 3,775,333 3,707,042 (68,291) 3,553,430 Licenses and permits: - Licenses- Contractor 15,447 18,705 3,258 19,090 Business 77,860 77,943 83 77,687 - All other 58,767 31,271 (27,496) 32,178 Permits 196,674 214,794 18,120 205,186 Total licenses and permits 348,748 342,713 (6,035) 334,141 Intergovernmental revenue: Civil defense 5,000 5,545 545 6,162 - State maintenance aid 195,811 186,278 (9,533) 195,811 State credits 846,304 856,066 9,762 846,304 Local government aid 1,743,090 1,506,376 (236,714) 1,740,569 - Other state grants 37,286 31,600 (5,686) 34,498 Police and fire pension 236,395 231,666 (4,729) 229,673 Other 3,027 3,027 - Total intergovernmental revenue 3,063,886 2,820,558 (243,328) 3,053,017 Charges for services: - General government 490,164 477,885 (12,279) 447,061 Public safety 66,205 67,929 1,724 39,993 Conservation of health 3,126 2,370 (756) 7,606 Recreation 139,509 145,477 5,968 135,355 Total charges for services 699,004 693,661 (5,343) 630,015 Fine and forfeits 272,147 238,906 (33,241) 259,764 Interest on investments 205,166. 521,352 316,186 367,776 (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, 1991 With Comparative Actual Amounts for Year Ended December 31, 1990 1991 - Variance Favorable 1990 Budget Actual (Unfavorable) Actual - Miscellaneous revenue: Rent income $5,740 $5,186 ($554) $5,571 - Sale of property 25,171 27,404 2,233 6,370 Donations 24,202 25,918 1,716 58,967 Miscellaneous 15,119 66,148 51,029 28,624 - Total miscellaneous revenue 70,232 124,656 54,424 99,532 Total revenues 8,434,516 8,448,888 14,372 8,297,675 - Other financing sources: Operating transfers in - - Employee Benefit Fund 100,000 100,000 Special Assessment Encumbrance Fund 13,530 13,530 12,886 Liquor Fund 50,000 50,000 115,000 - Cable TV Fund 5,000 5,000. IRDB Deposit Fund 9,898 9,898 9,427 Special Assessment Debt Service Fund 192,272 192,272 4,987 - Self Insurance Fund 61,109 Total other financing sources 370,700 370,700 0 203,409 Total revenues and other financing sources $8,805,216 $8,819,588 $14,372 $8,501,084 66 Exhibit B-4 CITY OF FRIDLEY, MINNESOTA _ GENERAL FUND SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES- BUDGET AND ACTUAL Year Ended December 31, 1991 With Comparative Actual Amounts for Year Ended December 31, 1990 1991 Variance Favorable 1990 Budget Actual (Unfavorable) Actual General government: Mayor and Council- Personal services $49,556 $49,128 $428 $45,320 Supplies and other charges 55,258 41,577 13,681 50,935 104,814 90,705 14,109 96,255 Planning commission - Supplies and other charges 4,344 572 3,772 2,482 4,344 572 3,772 2,482 Other commissions- - Supplies and other charges 29,001 16,065 12,936 3,366 29,001 16,065 12,936 3,366 City manager- Personal services 227,543 225,586 1,957 221,180 Supplies and other charges 52,045 43,367 8,678 38,139 279,588 268,953 10,635 259,319 Personnel - Personal services 62,575 62,575 56,496 Supplies and other charges 13,576 10,363 3,213 10,525 76,151 72,938 3,213 67,021 Legal - Supplies and other charges 169,696 169,696 149,444 169,696 169,696 0 149,444 Elections- Personal services 2,072 2,072 Supplies and other charges 8,178 1,151 7,027 28,510 10,250 3,223 7,027 28,510 _ (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. 1991 With Comparative Actual Amounts for Year Ended December 31, 1990 1991 Variance Favorable 1990 Budget Actual (Unfavorable) Actual General government(continued): _ Accounting- Personal services $439,257 $430,112 9,145 $407,519 Supplies and other charges 64,204 48,376 15,828 53,908 503,461 478,488 24,973 461,427 Assessing- Personal services 135,457 134,454 1,003 130,112 Supplies and other charges 22,561 15,110 7,451 16,737 158,018 149,564 8,454 146,849 - MIS- Personal services 99,909 92,088 7,821 87,156 Supplies and other charges 63,000 61,388 1,612 42,966 -" 162,909 153,476 9,433 130,122 City clerk/records- -" Personal services 77,289 73,210 4,079 71,745 Supplies and other charges 8,086 5,796 2,290 2,182 85,375 79,006 6,369 73,927 Nondepartmental - Personal services 4,837 4,837 832 - Supplies and other charges 27,364 11,412 15,952 14,160 32,201 16,249 15,952 14,992 Total general government 1,615,808 1,498,935 116,873 1,433,714 (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, 1991 With Comparative Actual Amounts for Year Ended December 31, 1990 - 1991 Variance - Favorable 1990 Budget Actual (Unfavorable) Actual Public safety: -- Police- Personal services $2,370,378 $2,339,423 $30,955 $2,152,076 Supplies and other charges 283,819 258,432 25,387 252,393 - 2,654,197 2,597,855 56,342 2,404,469 Fire- - Personal services 542,234 527,377 14,857 513,895 Supplies and other charges 100,698 100,181 517 84,455 642,932 627,558 15,374 598,350 Civil defense- Personal services _ Supplies and other charges 9,299 8,088 1,211 5,881 9,299 8,088 1,211 5,881 Total public safety 3,306,428 3,233,501 72,927 3,008,700 _ Municipal center: Personal services 23,005 22,738 267 21,933 Supplies and other charges 148,364 143,230 5,134 151,327 Total municipal center 171,369 165,968 5,401 173,260 - Public works: Engineering- - Personal services 355,236 348,811 6,425 332,330 Supplies and other charges 27,799 25,708 2,091 27,043 383,035 374,519 8,516 359,373 - Public works and Parks: Personal services 1,041,316 996,402 44,914 965,909 - Supplies and other charges 739,773 660,201 79,572 641,884 1,781,089 1,656,603 124,486 1,607,793 - Total public works 2,164,124 2,031,122 133,002 1,967,166 - (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. 1991 With Comparative Actual Amounts for Year Ended December 31, 1990 1991 Variance _ Favorable 1990 Budget Actual (Unfavorable) Actual Community Development: _ Building inspection Personal services $133,316 $133,316 $ $125,215 Supplies and other charges 39,982 37,710 2,272 41,754 173,298 171,026 2,272 166,969 Planning - _ Personal services 275,658 224,415 51,243 258,826 Supplies and other charges 28,554 26,940 1,614 58,411 304,212 251,355 52,857 317,237 Total community development 477,510 422,381 55,129 484,206 Naturalist and Recreation: -' Naturalist- Personal services 161,286 155,196 6,090 149,303 Supplies and other charges 62,974 56,148 6,826 54,654 224,260 211,344 12,916 203,957 Recreation- - Personal services 347,186 339,866 7,320 304,460 Supplies and other charges 137,874 104,775 33,099 133,015 485,060 444,641 40,419 437,475 - Total recreation and naturalist 709,320 655,985 53,335 641,432 Reserve for contingency- 238,413 238,413 (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, 1991 With Comparative Actual Amounts for Year Ended December 31, 1990 1991 Variance Favorable 1990 Budget Actual (Unfavorable) Actual Capital outlay expenditures- - City manager $1,608 $1,608 $ $ Accounting 4,031 3,990 41 11,098 Assessing 1,950 1,950 Elections 416 416 - MIS 264,021 227,084 36,937 City clerk/records 525 469 56 Police 102,604 4,467 98,137 100,772 Fire 45,860 4,172 41,688 33,943 Civil defense 3,118 Municipal center 7,591 4,591 3,000 340 - Building inspection 627 627 Planning 1,058 Engineering 10,528 10,528 15,201 Public works 121,486 119,405 2,081 175,342 Naturalist 4,425 2,089 2,336 6,865 Recreation 4,520 2,023 2,497 7,217 Total capital outlay 570,192 381,469 188,723 354,954 Total expenditures 9,253,164 8,389,361 863,803 8,063,432 - Other financing uses: Operating transfers out- - Capital Improvement Fund 20,823 20,823 5,948 _ Total other financing uses 20,823 20,823 0 5,948 Total expenditures and other financing uses $9,273,987 $8,410,184 $863,803 $8,069,380 71 SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for revenues derived from specific taxes or other earmarked revenue sources. They are usually required by statute, charter provision or local ordinance to finance particular governmental functions or activities. Cable TV Fund This fund receives revenues from the issuance of a franchise agreement with the cable TV provider. These revenues are used for the operation and maintenance of a government access channel. Grant Management Fund This fund administers grants received from a variety of intergovernmental agencies. In most cases, grant funds are provided on a reimbursement basis following proper documentation of expenditures, however, in some cases the money is provided in advance to be spent on specific activities outlined in the grant. Solid Waste Abatement Fund This fund receives grants, recycling fees and yard waste fees. These revenues finance the City's curbside recycling pickup and operation of the yard waste transfer site. Drug and Gambling Forfeiture Fund This fund receives forfeited property in connection with illegal gambling or drug activity. Pursuant to Minnesota statutes the proceeds are disbursed equally between the investigating agency and the prosecuting agency. HRA Reimbursement Fund This fund receives revenues from the Housing and Redevelopment Authority. These revenues are used to reimburse the City for professional services provided by city staff for HRA related activities. CITY OF FRIDLEY. MINNESOTA SPECIAL REVENUE FUNDS — COMBINING BALANCE SHEET December 31, 1991 With Comparative Totals for December 31, 1990 Solid Waste — Cable Grant Abatement TV Management Fund Assets Cash and cash equivalents $10,000 $ $ — Investments 101,734 Accounts receivable 20,113 5,966 Due from other funds — Due from other governments 18,904 19,362 Total assets $131,847 $18,904 $25,328 — Liabilities and Fund Balance — Liabilities: Accounts payable $8,937 $4,556 $7,552 — Deposits payable 10,000 Salaries payable 360 Due to other funds 13,319 9,716 — Total liabilities 18,937 18,235 17,268 Fund balance: _ Reserved for encumbrances 955 Unreserved- Designated for subsequent — year's expenditures 4,466 669 Designated for Special Revenue Programs 107,489 8,060 Total fund balance 112,910 669 8,060 Total liabilities and fund balance $131,847 $18,904 $25,328 74 Exhibit C-1 Drug& Gambling HRA Forfeiture Totals Reimbursement Fund 1991 1990 $ $ $10,000 $66,687 594 11,783 114,111 20,770 26,079 20,637 2,958 2,958 1,252 38,266 89,156 $3,552 $11,783 $191,414 $198,502 $1,052 $265 $22,362 $27,617 10,000 10,000 360 1,608 2,500 25,535 71,050 3,552 265 58,257 110,275 955 5,135 7,491 11,518 127,067 80,736 0 11,518 133,157 88,227 $3,552 $11,783 $191,414 $198,502 75 CITY OF FRIDLEY, MINNESOTA — SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended December 31, 1991 — With Comparative Totals for Year Ended December 31, 1990 Solid Waste Cable Grant Abatement TV Management Fund — Revenues: Charges for services $ $ $91,301 -" Fines and forfeits Licenses and permits 82,310 Intergovernmental revenue 175,604 82,178 — Interest on investments 8,402 Miscellaneous 675 110 Total revenues 90,712 176,279 173,589 — Expenditures: Current- — General government 57,402 98,522 165,529 Public safety Capital outlay 2,453 78,262 — Total expenditures 59,855 176,784 165,529 Excess(deficiency)of revenues — over expenditures 30,857 (505) 8,060 Other financing(uses): — Operating transfers out (5,000) Total other financing(uses) (5,000) 0 0 Excess(deficiency)of revenues over expenditures and other financing uses 25,857 (505) 8,060 _, Fund balance January 1 87,053 1,174 Fund balance December 31 $112,910 $669 $8,060 76 Exhibit C-2 Drug& ,.., Gambling HRA Forfeiture Totals Reimbursement Fund 1991 1990 $ $ $91,301 $ 47,253 47,253 82,310 74,825 49,279 307,061 324,941 8,402 5,802 31 816 600 49,310 47,253 537,143 406,168 49,310 370,763 327,760 35,735 35,735 80,715 55,242 49,310 35,735 487,213 383,002 11,518 49,930 23,166 (5,000) 0 0 (5,000) 0 11,518 44,930 23,166 88,227 65,061 ._ $0 $11,518 $133,157 $88,227 77 Exhibit C-3 CITY OF FRIDLEY, MINNESOTA CABLE TV SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET — December 31, 1991 and 1990 1991 1990 —' Assets Cash and cash equivalents $10,000 $66,687 Investments 101,734 20,770 Accounts receivable 20,113 20,409 -' Total assets $131,847 $107,866 Liabilities and Fund Balance Liabilities: Accounts payable $8,937 $10,238 Deposits payable 10,000 10,000 — Salaries payable 575 Total liabilities 18,937 20,813 Fund balance: Reserved for encumbrances 955 Unreserved- — Designated for subsequent year's expenditures 4,466 6,317 Designated for Cable TV Program 107,489 80,736 Total fund balance 112,910 87,053 — Total liabilities and fund balance $131,847 $107,866 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, 1991 With Comparative Amounts for Year Ended December 31, 1990 1991 Variance Favorable 1990 Budget Actual (Unfavorable) Actual Revenues: Licenses-franchise fee $70,000 $82,310 $12,310 $74,825 Interest on investments 3,197 8,402 5,205 5,802 Total revenues 73,197 90,712 17,515 80,627 Expenditures: Current General government- Personal services 17,662 11,225 6,437 9,798 Supplies and other charges 49,135 46,177 2,958 43,246 Capital outlay 2,453 2,453 3,992 Total expenditures 69,250 59,855 9,395 57,036 Excess(deficiency)of revenues over expenditures 3,947 30,857 26,910 23,591 - Other financing sources(uses): Operating transfers out (5,000) (5,000) Excess(deficiency)of revenues over expenditures and other financing uses (1,053) 25,857 26,910 23,591 Fund balance January 1 87,053 87,053 63,462 - Fund balance December 31 $86,000 $112,910 $26,910 $87,053 79 Exhibit C-5 CITY OF FRIDLEY, MINNESOTA GRANT MANAGEMENT SPECIAL REVENUE FUND — COMPARATIVE BALANCE SHEET December 31, 1991 and 1990 1991 1990 Assets Accounts receivable $ $228 — Due from other governments 18,904 89,156 Total assets $18,904 $89,384 Liabilities and Fund Balance Liabilities: — Due to other funds $13,319 $70,670 Accounts payable 4,556 16,507 Salaries payable 360 1,033 Total liabilities 18,235 88,210 Fund balance: — Unreserved- Designated for subsequent year's expenditures 669 1,174 — Total liabilities and fund balance $18,904 $89,384 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, 1991 With Comparative Amounts for Year Ended December 31, 1990 1991 Variance Favorable 1990 Budget Actual (Unfavorable) Actual Revenues: - Intergovernmental revenue - Federal $150,942 $174,141 $23,199 $149,468 State 1,463 1,463 118,276 Donations 100 Miscellaneous 675 675 500 Total revenues 152,405 176,279 23,874 268,344 Expenditures: Current General government- Personal services 42,732 36,827 5,905 41,196 Supplies and other charges 61,695 61,695 176,323 Capital outlay 87,978 78,262 9,716 51,250 Total expenditures 192,405 176,784 15,621 268,769 Excess(deficiency)of revenues over expenditures and other financing sources (40,000) (505) (40,505) (425) Fund balance January 1 1,174 1,599 Fund balance December 31 ($40,000) $669 ($40,505) $1,174 81 Exhibit C-7 CITY OF FRIDLEY, MINNESOTA SOLID WASTE ABATEMENT SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1991 and 1990 1991 1990 Assets Accounts receivable $5,966 $ Due from other governments 19,362 Total assets $25,328 $0 Liabilities and Fund Balance Liabilities: Due to other funds $9,716 $ Accounts payable 7,552 Total liabilities 17,268 0 Fund balance: — Designated for Solid Waste Abatement 8,060 Total liabilities and fund balance $25,328 $0 82 Exhibit C-8 CITY OF FRIDLEY, MINNESOTA SOLID WASTE ABATEMENT SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL Year Ended December 31, 1991 With Comparative Amounts for Year Ended December 31, 1990 1991 Variance Favorable 1990 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue- — State $124,773 $82,178 ($42,595) $ Charges for services 80,836 91,301 10,465 Miscellaneous 11,750 110 (11,640) ... Total revenues 217,359 173,589 (43,770) 0 Expenditures: Current . General government- Personal services 17,702 7,450 10,252 Supplies and other charges 199,657 1 58,079 41,578 Total expenditures 217,359 165,529 51,830 0 Excess of revenues over expenditures 8,060 8,060 Fund balance January 1 Fund balance December 31 $0 $8,060 $8,060 $0 83 • Exhibit C-9 — CITY OF FRIDLEY. MINNESOTA DRUG AND GAMBLING FORFEITURE SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET _ December 31, 1991 and 1990 1991 1990 —' Assets Investments $11,783 $ Total assets $11,783 $0 Liabilities and Fund Balance Liabilities: Accounts payable $265 $ — Total liabilities 265 0 Fund balance: — Designated for Drug and Gambling Enforcement 11,518 Total liabilities and fund balance $11,783 $0 — • 84 • Exhibit C-10 CITY OF FRIDLEY, MINNESOTA DRUG AND GAMBLING FORFEITURE SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL Year Ended December 31, 1991 With Comparative Amounts for Year Ended December 31, 1990 1991 Variance Favorable 1990 Budget Actual (Unfavorable) Actual Revenues: Fines and forfeits $47,253 $47,253 $ $ Total revenues 47,253 47,253 0 0 Expenditures: Current Public safety- Supplies and other charges 35,735 35,735 '— Total expenditures 35,735 35,735 0 0 Excess of revenues over expenditures 11,518 11,518 Fund balance January 1 Fund balance December 31 $11,518 $11,518 $0 $0 85 Exhibit C-11 CITY OF FRIDLEY, MINNESOTA HRA REIMBURSEMENT SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1991 and 1990 1991 1990 '^ Assets Investments $594 $ Due from other funds 2,958 1,252 Total assets $3,552 $1,252 Liabilities and Fund Balance Liabilities: '- Accounts payable $1,052 $872 Due to other funds 2,500 380 Total liabilities 3,552 1,252 -- Fund balance: Unreserved-undesignated 0 0 Total liabilities and fund balance $3,552 $1,252 86 Exhibit C-12 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, 1991 With Comparative Amounts for Year Ended December 31, 1990 .-. 1991 Variance Favorable 1990 Budget Actual (Unfavorable) Actual Revenues: — Intergovernmental revenue- Housing Redevelopment Authority $49,279 $49,279 $ $57,197 Miscellaneous 31 31 Total revenues 49,310 49,310 0 57,197 Expenditures: Current General government- Supplies and other charges 49,310 49,310 57,197 Total expenditures 49,310 49,310 0 57,197 Excess of revenues over expenditures 0 0 0 Fund balance January 1 0 0 0 Fund balance December 31 $0 $0 $0 $0 • 87 • 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, 1991 With Comparative Totals for December 31, 1990 Special Totals Assessment HRA 1991 1990 Assets Cash and cash equivalents $ $419 $419 $ -' Investments 10,677,326 473,604 11,150,930 10,443,559 Receivables: Special Assessments- — Unremitted 3,170 3,170 1,544 Delinquents 203,660 203,660 143,642 Deferred 2,716,679 2,716,679 3,234,827 Total assets $13,600,835 $474,023 $14,074,858 $13,823,572 Liabilities and Fund Balance Liabilities: Accounts payable $ $419 $419 $ Deposits payable 26,350 Deferred revenue 2,920,572 2,920,572 3,378,468 Due to other funds 21,413 21,413 Total liabilities 2,941,985 419 2,942,404 3,404,818 Fund balance: Reserved for debt service 3,001,844 473,604 3,475,448 3,452,488 Unreserved- undesignated 7,657,006 7,657,006 6,966,266 Total fund balance 10,658,850 473,604 11,132,454 10,418,754 Total liabilities and fund balance $13,600,835 $474,023 $14,074,858 $13,823,572 89 Exhibit D-2 CITY OF FRIDLEY. MINNESOTA DEBT SERVICE FUNDS — COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended December 31. 1991 With Comparative Totals for Year Ended December 31, 1990 Special Totals Assessment HRA 1991 1990 Revenues: Special assessments $770,576 $ $770,576 $630,779 Interest on investments 866,598 22,713 889,311 812,976 — Total revenues 1,637,174 22,713 1,659,887 1,443,755 Expenditures: — Debt service- Principal retirement 440,000 245,000 685,000 14,720,000 Interest and fiscal charges 285,468 895,837 1,181,305 985,514 — Refunding bond issuance costs 83,655 Total expenditures 725,468 1,140,837 1,866,305 15,789,169 Excess(deficiency)of revenues over expenditures 911,706 (1,118,124) (206,418) (14,345,414) Other financing sources(uses): Operating transfers in (out)- Bond Proceeds 31,363 31,363 9,394,489 — HRA Capital Projects Fund 1,081,374 1,081,374 1,272,719 General Fund (192,272) (192,272) Public Utility Fund (347) (347) — Payment to Refunded Bond Escrow Agent (9,257,980) Total other financing sources (161,256) 1,081,374 920,118 1,409,228 Excess(deficiency)of revenues and other financing sources over expenditures 750,450 (36,750) 713,700 (12,936,186) — Fund balance January 1 9,908,400 510,354 10,418,754 23,354,940 Fund balance December 31 $10,658,850 $473,604 $11,132,454 $10,418,754 90 • 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. 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, 1991 With Comparative Totals for December 31, 1990 Capital Special Improvements Assessments Assets -' Cash and cash equivalents $69,153 $ Investments 7,095,955 779,663 Receivables: Accounts 2,870 Taxes- Unremitted 1,947 Delinquent 6,336 Specials- Unremitted 136 Delinquent 2,007 Deferred 108,076 Mortgage- -' Current Delinquent Deferred — Interest Due from other funds 19,590 Total assets $7,195,851 $889,882 — Liabilities and Fund Balance Liabilities: — Accounts payable $18,557 $ Deposits payable 88,055 Contracts payable 6,798 27,416 -' Deferred revenue 6,336 110,083 Due to other funds 768,762 Due to other governments 35,000 — Total liabilities 31,691 1,029,316 Fund balance: — Reserved for encumbrances 59,938 Reserved for construction Unreserved - _ Designated for fixed asset replacement 1,725,183 Designated for park improvements 1,092,696 Designated for street improvements 4,286,343 Undesignated (139,434) Total fund balance 7,164,160 (139,434) Total liabilities and fund balance $7,195,851 $889,882 92 Exhibit E-1 Totals HRA 1991 1990 $953,179 $1,022,332 $1,185,085 5,561,364 13,436,982 11,296,939 14,428 17,298 11,275 10,766 12,713 9,318 495,366 501,702 332,483 136 2,007 1,468 108,076 117,818 4,000 7,960 952,000 952,000 982,000 172,889 172,889 95,915 23,913 43,503 220 $8,183,905 $16,269,638 $14,044,481 $8,880 $27,437 $3,973 15,086 103,141 86,688 34,214 132,279 1,447,366 1,563,785 1,445,730 36,673 805,435 1,337,404 145,168 180,168 143,473 1,653,173 2,714,180 3,149,547 59,938 273,027 6,530,732 6,530,732 5,176,348 1,725,183 1,827,593 1,092,696 773,754 4,286,343 3,944,149 (139,434) (1,099,937) 6,530,732 13,555,458 10,894,934 $8,183,905 $16,269,638 $14,044,481 93 CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES. EXPENDITURES AND — CHANGES IN FUND BALANCE Year Ended December 31, 1991 With Comparative Totals for Year Ended December 31, 1990 — Capital Special Improvements Assessments Revenues: Taxes- Tax increment $ $ — Current ad valorem taxes 72,284 Delinquent ad valorem taxes 296 Special assessments 19,338 — Total taxes 72,580 19,338 Intergovernmental revenue- — State credits 15,000 State aid for construction 303,353 Other _ Total intergovernmental revenue 318,353 0 Interest on investments 608,960 14,951 _ Miscellaneous revenue- Rental income Donations 11,120 Other 306 1,910 Total miscellaneous revenue 11,426 1,910 Total revenues 1,011,319 36,199 (Continued) • 94 Exhibit E-2 Totals HRA 1991 1990 $2,662,381 $2,662,381 $2,510,294 72,284 72,726 296 1,375 69,591 88,929 139,189 2,731,972 2,823,890 2,723,584 15,000 14,344 303,353 77,504 86,916 0 318,353 178,764 337,142 961,053 927,643 108,414 108,414 66,147 11,120 19,291 117,909 120,125 10,936 226,323 239,659 96,374 3,295,437 4,342,955 3,926,365 95 CITY OF FRIDLEY. MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE(Continued) Year Ended December 31. 1991 With Comparative Totals for Year Ended December 31, 1990 Capital Special Improvements Assessments Expenditures: Current- General government $ $ Public works 182,872 Capital outlay 302,036 260,770 Total expenditures 484,908 260,770 Excess(deficiency)of revenues over expenditures 526,411 (224,571) — Other financing sources(uses): Bond proceeds 977,417 — Operating transfers in (out)- General Fund 20,823 (13,530) HRA Debt Service Fund — Capital Improvement Fund 221,187 HRA Capital Project Fund 19,590 Special Assessment Capital Projects Fund (221,187) Total other financing sources(uses) (180,774) 1,185,074 Excess(deficiency)of revenues and other financing sources over expenditures and other financing uses 345,637 960,503 Fund balance January 1 6,818,523 (1,099,937) Fund balance(deficit) December 31 $7,164,160 ($139,434) 96 Exhibit E-2 Continued Totals HRA 1991 1990 $661,002 $661,002 $708,965 182,872 141,266 179,087 741,893 2,217,569 840,089 1,585,767 3,067,800 2,455,348 2,757,188 858,565 977,417 7,293 (11,925) (1,081,374) (1,081,374) (1,272,719) (19,590) 201,597 88,291 19,590 (221,187) (88,291) (1,100,964) (96,664) (1,284,644) 1,354,384 2,660,524 (426,079) 5,176,348 10,894,934 11,321,013 • $6,530,732 $13,555,458 $10,894,934 97 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. CITY OF FRIDLEY. MINNESOTA ENTERPRISE FUNDS Exhibit F-1 COMBINING BALANCE SHEET December 31. 1991 With Comparative Totals for December 31, 1990 Public Totals Liquor Utilities 1991 1990 Assets Current Assets: Cash and cash equivalents $591,189 $1,704,295 $2,295,484 $986,844 Investments 3,621,077 3,621,077 3,621,077 Accounts receivable 804,868 804,868 689,061 Due from other governments 18,946 18,946 28,090 Inventories, at cost 319,232 1,360 320,592 314,908 Prepaid items 23,851 140,508 164,359 147,350 Total current assets 934,272 6,291,054 7,225,326 5,787,330 Long-term receivable- Metro Waste Control Commission 190,412 190,412 210,424 - Property and equipment, at cost: Property and equipment 562,219 25,125,294 25,687,513 24,543,015 Less: accumulated depreciation (240,985) (6,991,345) (7,232,330) (6,721,117) Net property and equipment 321,234 18,133,949 18,455,183 17,821,898 Total assets $1,255,506 $24,615,415 $25,870,921 $23,819,652 Liabilities and Fund Equity Current liabilities: Accounts payable $113,761 $55,181 $168,942 $123,608 Contracts payable 450 153,120 153,570 54,821 Salaries payable 2,063 3,350 5,413 26,978 Due to other governments 26,602 60,738 87,340 35,977 Accrued interest payable 43,412 43,412 Bonds payable-current 35,000 35,000 Total current liabilities 142,876 350,801 493,677 241,384 Long-term liabilities: Bonds payable 1,580,000 1,580,000 Total liabilities 142,876 1,930,801 2,073,677 i Fund equity: Contributed capital 12,581,903 12,581,903 12,858,573 Retained earnings- Reserved for capital outlay 2,291,080 2,291,080 942,529 Unreserved 1,112,630 7,811,631 8,924,261 9,777,166 Total retained earnings 1,112,630 10,102,711 11,215,341 10,719,695 • ... Total fund equity 1,112,630 22,684,614 23,797,244 23,578,268 Total liabilities and fund equity $1,255,506 $24,615,415 $25,870,921 $23,819,652 99 CITY OF FRIDLEY. MINNESOTA Exhibit F-2 ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES. EXPENSES - AND CHANGES IN RETAINED EARNINGS Year Ended December 31. 1991 With Comparative Totals for Year Ended December 31, 1990 _ Public Totals - Liquor Utilities 1991 1990 Sales and cost of sales: Sales $2,787,205 $ $2,787,205 $2,492,863 - Cost of sales 2,219,230 2,219,230 2,002,681 Gross profit 567,975 0 567,975 490,182 Operating revenues: Water sales and sewer rents 3,011,473 3,011,473 2,926,154 Other 103,964 103,964 123,504 - Total operating revenues 0 3,115,437 3,115,437 3,049,658 Operating expenses: Personal services 293,720 663,472 957,192 906,538 Supplies and other charges- Disposal charges 1,600,457 1,600,457 1,471,997 Other 149,191 578,965 728,156 732,240 Depreciation 19,204 565,174 584,378 _ 533,257 Total operating expenses 462,115 3,408,068 3,870,183 3,644,032 Operating income(loss) 105,860 (292,631) (186,771) (104,192) Non-operating revenues(expenses): Interest on investments 57,256 484,805 542,061 429,945 Debt service (148,449) (148,449) _, Loss on reclassification of fixed assets (741) Other 2,000 2,000 4,017 Total non-operating revenues(expenses) 59,256 336,356 395,612 433,221 Income before operating transfers 165,116 43,725 208,841 329,029 Operating transfers in(out): General Fund (50,000) (50,000) (115,000) Special Assessment Debt Service Fund 347 347 - Total operating transfers (50,000) 347 (49,653) (115,000) Net income (loss) 115,116 44,072 159,188 214,029 "' Credit arising from transfer of depreciation on contributed capital 336,458 336,458 335,927 Retained earnings January 1 997,514 9,722,181 10,719,695 10,169,739 Retained earnings December 31 $1,112,630 $10,102,711 $11,215,341 $10,719,695 100 Exhibit F-3 CITY OF FRIDLEY, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS Year Ended December 31, 1991 With Comparative Totals for Year Ended December 31, 1990 Public Totals Liquor Utilities 1991 1990 Cash flows from operating activities: Operating income(loss) $105,860 ($292,631) ($186,771) ($104,192) Adjustments to reconcile operating income(loss) to net cash flows from operating activities: Depreciation 19,204 565,174 584,378 533,257 Changes in assets and liabilities: Decrease(increase)in receivables (86,651) (86,651) 47,787 ,.., Decrease(increase)in due from other funds 3,655 Decrease(increase) in inventories (6,199) 515 (5,684) (40,982) Decrease(increase) in prepaid items (4,280) (12,729) (17,009) (3,052) Increase(decrease) in payables 29,405 187,888 217,293 (69,162) Net cash flows from operating activities 143,990 361,566 505,556 367,311 - Cash flows from non-capital financing activities: Operating transfers out (50,000) (50,000) (115,000) Operating transfers in 347 347 Other non-operating revenue 2,000 2,000 4,017 Net cash flows from non-capital financing activities (48,000) 347 (47,653) (110,983) - Cash flows from capital and related financing activities: Acquisition and construction of fixed assets (127,966) (1,029,909) (1,157,875) (1,436,157) Proceeds from sale of revenue bonds 1,615,000 1,615,000 Interest and paying agent fees on revenue bonds (148,449) (148,449) Net cash flows from capital and related financing activities (127,966) 436,642 308,676 (1,436,157) Cash flows from investing activities: Interest on investments 57,256 476,057 533,313 420,496 Interest received from MWCC 8,748 8,748 9,449 Net cash flows from investing activities 57,256 484,805 542,061 429,945 - Net increase(decrease)in cash and cash equivalents 25,280 1,283,360 1,308,640 (749,884) Cash and cash equivalents-January 1 565,909 420,935 986,844 1,736,728 Cash and cash equivalents-December 31 $591,189 $1,704,295 $2,295,484 $986,844 101 Exhibit F-4 CITY OF FRIDLEY, MINNESOTA LIQUOR ENTERPRISE FUND COMPARATIVE BALANCE SHEET -" December 31, 1991 and 1990 1991 1990 Assets — Current Assets: Cash and cash equivalents $591,189 $565,909 — Inventories, at cost 319,232 313,033 Prepaid items 23,851 19,571 Total current assets 934,272 898,513 — Property and equipment, at cost: Land 66,961 66,961 — Buildings 179,764 174,116 Improvements other than building 76,320 18,677 Machinery and equipment 239,174 174,498 -- 562,219 434,252 Less: accumulated depreciation (240,985) (221,780) Net property and equipment 321,234 212,472 _ Total assets $1,255,506 $1,110,985 Liabilities and Fund Equity Current Liabilities: Accounts payable $113,761 $76,039 Contracts payable 450 Salaries payable 2,063 10,609 Due to other governments 26,602 26,823 Total current liabilities 142,876 113,471 Fund equity: Retained earnings- unreserved 1,112,630 997,514 Total liabilities and fund equity $1,255,506 $1,110,985 102 Exhibit F-5 CITY OF FRIDLEY. MINNESOTA LIQUOR ENTERPRISE FUND - COMPARATIVE STATEMENT OF REVENUES. EXPENSES AND CHANGES IN RETAINED EARNINGS Years Ended December 31, 1991 and 1990 - 1991 1990 Sales and cost of sales: Sales $2,787,205 $2,492,863 - Cost of sales 2,219,230 2,002,681 Gross profit 567,975 490,182 - Operating expenses: Selling: Personal services 168,023 162,209 - Supplies and other charges 35,329 1,154 Total selling expenses 203,352 163,363 - Administration and overhead Personal services 125,697 119,414 Supplies and other charges 113,862 131,757 Depreciation 19,204 16,271 Total administration and overhead 258,763 267,442 - Total operating expenses 462,115 430,805 Operating income 105,860 59,377 Non-operating revenues: Interest on investments 57,256 50,819 _ Loss on reclassification of fixed assets (741) Other 2,000 4,017 Total non-operating revenues 59,256 54,095 Income before operating transfers 165,116 113,472 Operating transfers out: - General Fund (50,000) (115,000) Total operating transfers - (50,000) (115,000) Net income(loss) 115,116 (1,528) Retained earnings January 1 997,514 999,042 Retained earnings December 31 $1,112,630 $997,514 103 Exhibit F-6 CITY OF FRIDLEY, MINNESOTA LIQUOR ENTERPRISE FUND — COMPARATIVE STATEMENT OF CASH FLOWS Years Ended December 31, 1991 and 1990 1991 1990. Cash flows from operating activities: Operating income $105,860 $59,377 Adjustments to reconcile operating income (loss)to net — cash flows from operating activities: Depreciation 19,204 16,271 Changes in assets and liabilities: — Decrease(increase) in inventories (6,199) (40,090) Decrease(increase) in prepaid items (4,280) (1,789) Increases(decrease)in payables 29,405 (1,857) — Net cash flows from operating activities 143,990 31,912 Cash flows from non-capital financing activities: Operating transfers out to General Fund (50,000) (115,000) Other non-operating revenue 2,000 4,017 — Net cash flows from non-capital financing activities: (48,000) (110,983) — Cash flows from investing activities: Interest on investments 57,256 50,819 Cash flows from capital and related — financing activities: Acquisition and construction of fixed assets (127,966) Net increase(decrease)in cash and cash equivalents 25,280 (28,252) Cash and cash equivalents-January 1 565,909 594,161 — Cash and cash equivalents-December 31 $591,189 $565,909 • 104 CITY OF FRIDLEY, MINNESOTA Exhibit F-7 PUBLIC UTILITY ENTERPRISE FUND COMPARATIVE BALANCE SHEET December 31, 1991 and 1990 1991 1990 Assets Current assets: Cash &cash equivalents $1,704,295 $420,935 Investments 3,621,077 3,621,077 Receivables: Accounts 802,339 688,628 Taxes 2,529 433 Due from other governments 18,946 28,090 Inventories, at cost 1,360 1,875 Prepaid items 140,508 127,779 Total current assets 6,291,054 4,888,817 Long-term receivable- Metropolitan Waste Control Commission 190,412 210,424 Property and equipment, at cost: Land 154,531 154,531 Buildings 1,524,072 1,556,891 Improvements other than building 4,234,441 3,211,699 Machinery and equipment 2,267,717 2,183,336 Water and sewer lines 16,944,533 17,002,306 25,125,294 24,108,763 Less: accumulated depreciation (6,991,345) (6,499,337) Net property and equipment 18,133,949 17,609,426 Total assets $24,615,415 $22,708,667 -. Liabilities and Fund Equity Current liabilities: Accounts payable $55,181 $47,569 Contracts payable 153,120 54,821 Salaries payable 3,350 16,369 Due to other governments 60,738 9,154 Accrued interest payable 43,412 Bonds payable-current 35,000 Total current liabilities 350,801 127,913 Long term liabilities: Bonds payable 1,580,000 Total liabilities 1,930,801 127,913 Fund Equity: Contributed capital 12,581,903 12,858,573 Retained earnings: Reserved for capital outlay 2,291,080 942,529 Unreserved 7,811,631 8,779,652 ._ Total Retained Earnings 10,102,711 9,722,181 Total fund equity 22,684,614 22,580,754 Total liabilities and fund equity $24,615,415 $22,708,667 105 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, 1991 and 1990 1991 1990 — Operating Revenues: Water sales and sewer rents $3,011,473 $2,926,154 Other 103,964 123,504 Total Operating Revenues 3,115,437 3,049,658 — Operating Expenses: Personal services 663,472 624,915 — Supplies and other charges- Disposal charges 1,600,457 1,471,997 Other 578,965 599,329 Depreciation: Purchased assets 228,716 181,059 Contributed assets 336,458 335,927 -� Total Operating Expenses 3,408,068 3,213,227 Operating loss (292,631) (163,569) — Non-Operating Revenues(Expenses): Interest on Investments 484,805 379,126 — Debt service (148,449) Total non-operating revenues (expenses) 336,356 379,126 Income before operating transfers 43,725 215,557 Operating transfers from (to): Special Assessment Debt Service Fund 347 Total operating transfers 347 0 Net income 44,072 215,557 Credit arising from transfer of depreciation on contributed capital 336,458 335,927 • Retained Earnings January 1 9,722,181 9,170,697 Retained Earnings December 31 $10,102,711 $9,722,181 106 Exhibit F-9 CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITY ENTERPRISE FUND COMPARATIVE STATEMENT OF CASH FLOWS Years Ended December 31, 1991 and 1990 1991 1990 Cash flows from operating activities: Operating income(loss) ($292,631) ($163,569) Adjustment to reconcile operating income(loss)to net cash flows from operating activities: Depreciation 565,174 516,986 Changes in assets and liabilities: Decrease(increase) in receivables (86,651) 47,787 Decrease(increase) in due from other funds 3,655 Decrease(increase) in inventories 515 (892) Decrease(increase)in prepaid items (12,729) (1,263) Increase(decrease) in payables 187,888 (67,305) Net cash flows from operating activities 361,566 335,399 Net cash flows from non-capital financing activities: Operating transfer from Special Assessment Debt Service Fund 347 _ Cash flows from capital and related financing activities: Acquisition and construction of fixed assets (1,029,909) (1,436,157) Proceeds from sale of revenue bonds 1,615,000 Interest and paying agent fees on revenue bonds (148,449) Net cash flows from capital and related financing activities 436,642 (1,436,157) Cash flows from investing activities: Interest on investments 476,057 369,677 Interest received from MWCC 8,748 9,449 Net cash flows from investing activities 484,805 379,126 Net increase(decrease)in cash and cash equivalents 1,283,360 (721,632) Cash and cash equivalents-January 1 420,935 • 1,142,567 Cash and cash equivalents-December 31 $1,704,295 $420,935 Non-cash investing, capital and financing activities: System assets of$15,603 were contributed by the Capital Projects Special Assessment Fund to the Public Utility Enterprise Fund in 1991. 107 • 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. 1991 With Comparative Totals for December 31, 1990 Employee Self Totals Benefits Insurance 1991 1990 Assets Current assets: Cash and cash equivalents $ $90,535 $90,535 $1,086,839 Due from other funds 1,381,219 1,187,438 $2,568,657 $1,369,530 Accounts receivable 3,587 Prepaid items 163 163 Total assets $1,381,382 $1,277,973 $2,659,355 $2,459,956 Liabilities and Fund Equity Current liabilities: Accounts payable $ $697 $697 $ Payroll deductions payable 9,200 9,200 Compensated absences payable 1,005,971 1,005,971 995,748 Accrued claims liability 75,000 75,000 Total liabilities 1,015,171 75,697 1,090,868 995,748 Fund equity: Contributed capital 1,000,000 1,000,000 1,000,000 Retained earnings- reserved 366,211 202,276 568,487 464,208 Total fund equity 366,211 1,202,276 1,568,487 1,464,208 Total liabilities and fund equity $1,381,382 $1,277,973 $2,659,355 $2,459,956 109 Exhibit G-2 CITY OF FRIDLEY. MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES. EXPENSES AND CHANGES IN RETAINED EARNINGS Year Ended December 31. 1991 With Comparative Totals for Year Ended December 31, 1990 Employee Self Totals Benefits Insurance 1991 1990 Operating revenues: Charges for services $ $ $ $252,799 Insurance reimbursement 143,383 143,383 57,721 Total operating revenues 143,383 143,383 310,520 Operating expenses: Personal services 57,429 57,429 117,958 - Supplies and other charges 92,823 92,823 35,402 Benefit payments 252,799 Capital outlay 1,530 1,530 - Total operating expenses 57,429 94,353 151,782 406,159 Operating income(loss) (57,429) 49,030 (8,399) (95,639) - Non operating revenues: - Interest on investments 113,507 99,171 212,678 140,752 Income before operating transfers 56,078 148,201 204,279 45,113 Operating transfers out: General Fund (100,000) (100,000) (61,109) Net income(loss) (43,922) 148,201 104,279 (15,996) Retained earnings January 1 410,133 54,075 464,208 480,204 Retained earnings December 31 $366,211 $202,276 $568,487 $464,208 110 Exhibit G-3 CITY OF FRIDLEY. MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS Year Ended December 31.1991 With Comparative Totals for Year Ended December 31, 1990 Employee Self Totals Benefits Insurance 1991 1990 Cash flows from operating activities: Operating income(loss) ($57,429) $49,030 ($8,399) ($95,639) Adjustments to reconcile operating income(loss) to net cash flows from operating activities: Changes in assets and liabilities: Decrease(increase)in due from other funds (11,689) (1,187,438) (1,199,127) (1,369,530) Decrease(increase)in accounts receivable 1,106 2,318 3,424 (3,282) Decrease(increase)in prepaid items 21,073 Increase(decrease)in accounts payable (2,176) (2,176) 2,864 Increase(decrease)in accrued claims liability 75,000 75,000 Increase(decrease) in compensated absences payable 13,096 13,096 (48,796) • Increase(decrease) in payroll deductions payable 9,200 9,200 Net cash flows from operating activities (45,716) (1,063,266) (1,108,982) (1,493,310) Cash flows from non-capital financing activities: Contributed capital in from General Fund 1,000,000 Operating transfers to General Fund (100,000) (100,000) (61,109) Net cash flows from non-capital financing activities (100,000) 0 (100,000) 938,891 Cash flows from investing activities: Interest on investments 113,507 99,171 212,678 140,752 Net increase in cash and cash equivalents (32,209) (964,095) (996,304) (413,667) Cash and cash equivalents-January 1 32,209 1,054,630 1,086,839 1,500,506 Cash and cash equivalents-December 31 $0 $90,535 $90,535 $1,086,839 111 Exhibit G-4 CITY OF FRIDLEY, MINNESOTA EMPLOYEE BENEFITS INTERNAL SERVICE FUND COMPARATIVE BALANCE SHEET — December 31, 1991 and 1990 1991 1990 Assets — Cash and cash equivalents • $ $32,209 Due from other funds 1,381,219 1,369,530 — Accounts receivable 163 1,269 Total assets $1,381,382 $1,403,008 Liabilities and Fund Eauitv Current Liabilities: Compensated absences payable $1,005,971 $992,875 Payroll deductions payable 9,200 — Total current liabilities 1,015,171 992,875 Fund equity: Retained earnings- Reserved for employee benefits 366,211 410,133 Total current liability and fund equity $1,381,382 $1,403,008 112 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, 1991 and 1990 1991 1990 Operating revenues: Charges for services $ $252,799 Operating expenses: _ General government- Personal services 57,429 45,069 Benefit payments 252,799 Total operating expenses 57,429 297,868 Operating income(loss) (57,429) (45,069) Non-operating revenues: Interest on investments 113,507 113,618 Total non-operating revenues 113,507 113,618 Income before operating transfers 56,078 68,549 Operating transfers out: General Fund (100,000) Net income(loss) (43,922) 68,549 -- Retained earnings January 1 410,1143 341,584 Retained earnings December 31 $366,211 $410,133 113 Exhibit G-6 CITY OF FRIDLEY. MINNESOTA EMPLOYEE BENEFITS INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF CASH FLOWS — Years Ended December 31, 1991 and 1990 1991 1990 Cash flows from operating activities: Operating income(loss) ($57,429) ($45,069) — Adjustments to reconcile operating income(loss)to net cash flows from operating activities: Changes in assets and liabilities: Decrease(increase)in due from other funds (11,689) (1,369,530) Decrease(increase) in accounts receivable 1,106 (1,269) Decrease(increase)in prepaid items 21,073 — Increase (decrease) in compensated absences payable 13,096 (48,796) Increase(decrease)in payroll deductions payable 9,200 Net cash flows from operating activities (45,716) (1,443,591) — Cash flows from non-capital financing activities: Operating transfer to General Fund (100,000) — Cash flows from investing activities: Interest on investments 113,507 113,618 — Net increase(decrease)in cash and cash equivalents (32,209) (1,329,973) Cash and cash equivalents-January 1 32,209 1,362,182 Cash and cash equivalents-December 31 $0 $32,209 — 114 Exhibit G-7 CITY OF FRIDLEY, MINNESOTA SELF INSURANCE INTERNAL SERVICE FUND COMPARATIVE BALANCE SHEET December 31, 1991 and 1990 1991 1990 Assets Cash and cash equivalents $90,535 $1,054,630 Due from other funds 1,187,438 Accounts receivable 2,318 Total assets $1,277,973 $1,056,948 Liabilities and Fund Equity Current liabilities: Accounts payable $697 $2,873 Accrued claims liability 75,000 Total current liabilities 75,697 2,873 Fund equity: _ Contributed capital 1,000,000 1,000,000 Retained earnings- Reserved for contingencies 202,276 54,075 Total fund equity 1,202,276 1,054,075 Total liabilities and fund equity $1,277,973 $1,056,948 115 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, 1991 and 1990 -- 1991 1990 — Operating revenues: Insurance reimbursement $143,383 $57,721 Total operating revenues 143,383 57,721 Operating expenses: Personal services 72,889 Supplies and other charges 92,823 35,402 -- Capital outlay 1,530 Total operating expenses 94,353 108,291 Operating income(loss) 49,030 (50,570) Non-operating revenues: Interest on investments 99,171 27,134 — Income(loss)before operating transfers 148,201 (23,436) Operating transfers out: General Fund (61,109) Net income(loss) 148,201 (84,545) Retained earnings January 1 54,075 138,620 Retained earnings December 31 $202,276 $54,075 116 Exhibit G-9 CITY OF FRIDLEY. MINNESOTA SELF INSURANCE INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF CASH FLOWS Years Ended December 31, 1991 and 1990 1991 1990 Cash flows from operating activities: Operating income(loss) $49,030 ($50,570) Adjustments to reconcile operating income(loss)to net cash flows from operating activities: Changes in assets and liabilities: Decrease(increase)in due from other funds (1,187,438) Decrease(increase) in accounts receivable 2,318 (2,013) Increase(decrease) in accounts payable (2,176) 2,864 Increase(decrease) in accrued claims liability 75,000 Net cash flows from operating activities (1,063,266) (49,719) Cash flows from non-capital financing activities: Contributed capital in from General Fund 1,000,000 Operating transfer to General Fund (61,109) Net cash flows from non-capital financing activities 0 938,891 _ Cash flows from investing activities: Interest on investments 99,171 27,134 Net increase in cash and cash equivalents (964,095) 916,306 Cash and cash equivalents-January 1 1,054,630 138,324 Cash and cash equivalents-December 31 $90,535 $1,054,630 117 • 1 •i TRUST AND AGENCY FUNDS • ":.:..••,•, '_ Trust and Agency Funds are used to ac vaunt for assets..held by a government in a trustee or agent capacity for individuals, private organzations, other governments or other funds, ' rer?ctabfe Trusf, Edna_ 14 The City of Fridley maintains only one Expendable Trust Fund that is used to aefray the City ./, aa. m inistrative costs assoriatedwith the issuance of industrial revenue,develppment bonds.. Six ( IdesWatershed Actt ncy Euad 1 f.---i'',� Thiwa fund was'established to arcounr for the collection of taxes received'from the County on ,, i behalf of the Six Cities r ter.shedd Distrit;t. b3� '.1 Hotell `totel A enc f=ui•�d' ,i, This fund was established to;�account for fihe collection,of a three percent tax that has;been i =• ; ,ti "'.' imposed on all the hotels and motels in the�north suburban area The collection process is .k ' • administered by the City on behalf of the North Metro Convention and Tourism Bureau which will `;: i' . . , ' use the money to provide infoirhation to visitars.and create an awareness of the facilities available ;. {T in this area Deferred Compensation Agent Fxid Vii., This find accounts for deposits held in trust with the International City,Managers Association ,,• { ' (ICMA)on.behalf of tlie,City.of Fridley employees: Erpployees make pretax contributions to this q ;organization throughout their careers which are used as a retirement benefit.- .,t s, r is ' Pik... ii- .,- " ' '- ' '-'-, " , , - "'". ,. - ''' ,,,,,'',."'-_-_,',...'";.,.',..] { Exhibit H-1 CITY OF FRIDLEY, MINNESOTA — TRUST AND AGENCY FUNDS COMBINING BALANCE SHEET • December 31, 1991 _ With Comparative Totals for December 31, 1990 Expendable Agency Totals Trust Funds 1991 1990 Assets Cash and cash equivalents $ $ $ $69,949 Investments 60,983 4,085 65,068 Receivables: Accounts 2,082 2,082 4,269 — Taxes- Unremitted 133 133 9 Delinquent 1,305 1,305 1,297 Other assets 3,706,214 3,706,214 3,031,006 Total assets $60,983 $3,713,819 $3,774,802 $3,106,530 Liabilities and Fund Balance — Liabilities: Accounts payable $ $ $ $1,488 Deposits payable 42,354 3,706,214 $3,748,568 3,073,380 -' Due to other governments 7,501 7,501 8,226 Due to other funds 104 104 Total liabilities 42,354 3,713,819 3,756,173 3,083,094 Fund balance: — Unreserved- undesignated 18,629 18,629 23,436 Total liabilities and fund balance $60,983 $3,713,819 $3,774,802 $3,106,530 120 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, 1991 and 1990 1991 1990 Revenues: Interest on investments $5,091 $5,775 Expenditures: Current: General government 3,109 Excess of revenues over expenditures 5,091 2,666 �- Other financing uses: Operating transfers out (9,898) (9,427) Total other financing uses (9,898) (9,427) Increase(deficiency)of revenues �- over expenditures and other financing uses (4,807) (6,761) Fund balance,January 1 23,436 30,197 Fund balance, December 31 $18,629 $23,436 121 Exhibit H-3 CITY OF FRIDLEY. MINNESOTA ALL AGENCY FUNDS - COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES(Continued) Year Ended December 31, 1991 Balance Balance - January 1 Additions Deletions December 31 SIX CITIES WATERSHED AGENCY FUND - Assets Cash and cash equivalents $2,221 $3,360 $5,581 $ - Investments 4,085 4,085 Taxes receivable: Unremitted 9 133 9 133 - Delinquent 1,297 80 72 1,305 Total assets $3,527 $7,658 $5,662 $5,523 - Liabilities Accounts payable $1,488 $ $1,488 $ Due to other governments 2,039 5,522 2,038 5,523 Total liabilities $3,527 $5,522 $3,526 $5,523 HOTEUMOTEL TAX AGENCY FUND Assets - Cash and cash equivalents $1,918 $31,198 $33,116 $ Accounts receivable 4,269 2,082 4,269 2,082 - Total assets $6,187 $33,280 $37,385 $2,082 Liabilities Due to other governments $6,187 $1,978 $6,187 $1,978 _, Due to other funds 104 104 Total liabilities $6,187 $2,082 $6,187 $2,082 • 122 Exhibit H-3 Continued _ CITY OF FRIDLEY, MINNESOTA ALL AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES(Continued) Year Ended December 31, 1991 Balance Balance January 1 Additions Deletions December 31 DEFERRED COMPENSATION AGENCY FUND Assets Deferred compensation-at market $3,031,006 $788,186 $112,978 $3,706,214 Total assets $3,031,006 $788,186 $112,978 $3,706,214 Liabilities - Deposits payable $3,031,006 $788,186 $112,978 $3,706,214 Total liabilities $3,031,006 $788,186 $112,978 $3,706,214 TOTALS-All AGENCY FUNDS Assets _ Cash and cash equivalents $4,139 $34,558 $38,697 $ Investments 4,085 4,085 Receivables: Accounts 4,269 2,082 4,269 2,082 Taxes- Unremitted 9 133 9 133 Delinquent 1,297 80 72 1,305 Other assets 3,031,006 788,186 112,978 3,706,214 Total assets $3,040,720 $829,124 $156,025 $3,713,819 Liabilities Accounts payable $1,488 $ $1,488 $ Deposits payable 3,031,006 788,186 112,978 3,706,214 Due to other governments 8,226 7,500 8,225 7,501 Due to other funds 104 104 Total liabilities $3,040,720 $795,790 $122,691 $3,713,819 123 GENERAL FIXED ASSET ACCOUNT GROUP The General Fixed Asset Account Group is set up to account for long-lived assets not accounted for in an enterprise, trust or internal service fund. Exhibit I-1 CITY OF FRIDLEY. MINNESOTA COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS �- December 31, 1991 and 1990 1991 1990 General fixed assets: Land $2,101,614 $1,976,302 Building 4,515,210 4,510,618 Improvements other than building 15,454,342 15,328,066 Machinery and equipment 4,933,903 4,625,192 Construction in progress 308,748 Total general fixed assets $27,313,817 $26,440,178 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 10,381,044 10,116,207 Special revenue fund revenues 1,466,624 1,388,362 Special assessments 9,864,750 9,552,502 Private gifts 764,675 764,675 :Other sources 2,297,167 2,078,875 Total investment in general fixed assets $27,313,817 $26,440,178 125 Exhibit 1-2 CITY OF FRIDLEY. MINNESOTA SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY December 31, 1991 Improvements Machinery Other than and Total Land Buildings Buildings Equipment - Function and Activity General government City manager $30,022 $ $ $ $30,022 Cable TV 41,023 41,023 - Accounting 49,314 49,314 Management information systems 549,837 5,990 543,847 Assessing 4,541 4,541 _, Elections 92,804 92,804 City clerk/records 1,585 1,585 Planning 146,822 124,804 22,018 Municipal center 3,725,216 52,496 2,849,206 42,961 780,553 Total general government 4,641,164 177,300 2,849,206 48,951 1,565,707 Public safety Public protection 618,109 158,682 459,427 Fire protection 1,478,124 59,106 497,922 98,413 822,683 _ Inspectional services 10,631 10,631 Civil defense 147,302 110,527 36,775 Total public safety 2,254,166 59,106 497,922 367,622 1,329,516 Public works Engineering 87,367 87,367 Street improvements 11,478,228 4,426 11,473,802 _ Traffic signal 156,602 156,602 City garage 1,921,589 135,311 386,266 226,164 1,173,848 Parks 5,104,724 1,419,413 330,500 2,750,697 604,114 - Total public works 18,748,510 1,559,150 716,766 14,607,265 1,865,329 Recreation/Naturalist - Recreation 143,156 8,502 134,654 Naturalist 1,218,073 306,058 451,316 422,002 38,697 Total recreation/naturalist 1,361,229 306,058 451,316 430,504 173,351 - Total general fixed assets allocated to functions $27,005,069 $2,101,614 $4,515,210 $15,454,342 $4,933,903 - Construction in progress 308,748 - Total fixed assets $27,313,817 126 • Exhibit 1-3 CITY OF FRIDLEY, M INNESOTA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS- BY FUNCTION AND ACTIVITY Year Ended December 31, 1991 General Fixed General Fixed Assets Assets 1/1/91 Additions Deletions 12/31/91 Function and Activity General government City manager $25,357 $4,665 $ $30,022 - Cable TV 40,421 602 41,023 Accounting 49,360 1,962 2,008 49,314 Management information systems 329,278 220,559 549,837 - Assessing 5,406 865 4,541 Elections 92,388 416 92,804 City clerk/records 1,116 469 1,585 - Planning 146,822 146,822 Municipal center 3,714,599 10,617 3,725,216 Total general government 4,404,747 239,290 2,873 4,641,164 Public safety Public protection 657,619 4,884 44,394 618,109 Fire protection 1,413,815 70,167 5,858 1,478,124 Inspectional services 10,004 627 10,631 Civil defense 147,302 147,302 _ Total public safety 2,228,740 75,678 50,252 2,254,166 Public works Engineering 76,839 10,528 87,367 Street improvements 11,434,936 43,292 11,478,228 Traffic signal 138,110 18,492 156,602 City garage 1,982,209 102,541 163,161 1,921,589 - Parks 4,825,874 328,870 50,020 5,104,724 Total public works 18,457,968 503,723 213,181 18,748,510 - Recreation/Naturalist Recreation 135,638 7,518 143,156 _ Naturalist 1,213,085 4,988 1,218,073 Total recreation/naturalist 1,348,723 12,506 0 1,361,229 Construction in progress 308,748 308,748 - Total general fixed assets $26,440,178 $1,139,945 $266,306 $27,313,817 127 GENERAL LONG-TERM DEBT ACCOUNT GROUP The General Long-Term Debt Account Group is set up to account for unmatured principal of bonds, warrants, notes, or other forms of long-term indebtedness that are secured by the full faith and credit of the City and is not deemed the primary obligation of any specific enterprise fund of the City. Exhibit J-1 CITY OF FRIDLEY, MINNESOTA COMPARATIVE SCHEDULE OF GENERAL LONG-TERM DEBT December 31, 1991 and 1990 1991 1990 Amount available and to be provided for the payment of general long-term debt — Amount available in Debt Service Funds $11,132,454 $10,418,754 Amount to be provided by future taxes 4,967,546 5,346,246 Total available and to be provided $16,100,000 $15,765,000 — General long-term debt payable General long-term debt payable: General obligation special assessment improvement bonds $3,810,000 $3,230,000 General obligation tax increment refunding bonds 9,485,000 9,485,000 Tax increment revenue refunding bonds 2,805,000 3,050,000 Total general long-term debt payable $16,100,000 $15,765,000 129 SUPPLEMENTAL SECTION TAUTGES, REDPATH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report on Compliance With Requirements Applicable to Nonmajor Federal Financial Assistance Program Transactions To the Honorable Mayor and Members of the City Council City of Fridley,Minnesota We have audited the general purpose fmancial statements of the City of Fridley,Minnesota as of and for the year ended December 31, 1991,and have issued our report thereon dated May 15, 1992. In connection with our audit of the general purpose financial statements of the City of Fridley, Minnesota,and with our consideration of the City of Fridley's control structure 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, 1991. As required by Circular A-128,we have performed auditing procedures to test compliance with the requirements governing the allowability of services and program expenditures 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 Minnesota'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. With respect to items not tested,nothing came to our attention that caused us to believe that the City of Fridley,Minnesota had not complied,in all material respects,with those requirements. This report is intended for the information of the City of Fridley,Minnesota and the Federal Cognizant Audit Agency. However,this report is a matter of public record and its distribution is ...• not limited. ,&,ryr4 sr4 //V. TAUTGES, REDPATH&CO.,LTD. Certified Public Accountants May 15, 1992 131 4810 White Bear Parkway • White Bear Lake, Minnesota 55110 • 612/426-7000 • FAX/426-5004 TAUTGES, REDPATH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report on the Internal Control Structure — 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,Minnesota, as of and for the year ended December 31, 1991,and have issued our report thereon dated May 15, 1992. 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, 1991,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. 133 4810 White Bear Parkway • White Bear Lake, Minnesota 55110 • 612/426-7000 • FAX/426-5004 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 the City of Fridley,Minnesota and the Federal Cognizant Audit Agency. This restriction is not intended to limit the distribution of this report, which is a matter of public record. /i . fg. L,, TAUTGES,REDPATH&CO.,LTD. Certified Public Accountants May 15, 1992 135 TAUTGES, REDPATH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS jgdependent Auditor's Report on the Internal Control Structure Used in Administering Federal Financial Assistance Programs 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, 1991,and have issued our report thereon dated May 15, 1992. — We conducted our audits in accordance with generally accepted auditing standards;Government Auditing Standards,issued by the Comptroller General of the United States; and Office of Management and Budget(OMB)Circular A-128,Audits of State and Local Governments. Those standards and OMB Circular A-128 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 audits for the year ended December 31, 1991,we considered the City's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the City's general purpose financial statements. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated May 15, 1992. 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,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,and that federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure,errors,irregularities,or instances of noncompliance may nevertheless occur and not be detected. Also,projection 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 137 4810 White Bear Parkway • White Bear Lake, Minnesota 55110 • 612/426-7000 • FAX/426-5004 For the purpose of this report,we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: -. General Requirements: Specific Requirements: Political Activity Types of Services Civil Rights Eligibility Cash Management Reporting Relocation Assistance and Real Property Special Tests and Provisions Acquisition Claims for Reimbursement Federal Financial Reports Allowable Costs/Cost Principles Administrative Requirements For all of the internal control structure categories listed above,we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended December 31, 1991,the City of Fridley,Minnesota had no major federal financial assistance programs and expended 73%of its total federal financial assistance under the Community Development Block Grant nonmajor federal financial assistance program. We performed tests of controls,as required by OMB Circular A-128,to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we have considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements,and requirements governing claims for reimbursements applicable to the aforementioned nonmajor programs. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly,we do not express such an opinion. We noted no matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to out attention relating to significant deficiencies in the design or operation of the internal control structure that,in our judgment,could adversely affect the City's ability to administer federal financial assistance programs in accordance with applicable laws and regulations. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and,accordingly,would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. 139 This report is intended for the information of the City of Fridley,Minnesota and the Federal Cognizant Audit Agency. This restriction is not intended to limit the distribution of this report, which is a matter of public record. TAUTGES,REDPATH&CO.,LTD. Certified Public Accountants May 15, 1992 • 141 TAUTGES, REDPATH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report on Compliance with General Requirements Applicable to Federal Financial Assistance Programs — 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, 1991,and have issued our report thereon dated May 15, — 1992. We have applied procedures to test the City of Fridley,Minnesota's compliance with the following — requirements applicable to its federal financial assistance programs,which are identified in the schedule of federal financial assistance,for the year ended December 31, 1991. The general requirements tested were: — Political Activity Relocation Assistance and Civil Rights Real Property Acquisition Cash Management Allowable Costs/Cost Principles — Federal Financial Reports Administrative Requirements Our procedures were limited to the applicable procedures described in the Office of Management and Budget's Compliance Supplement for Single Audits of State and Local Governments. 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, Minnesota's compliance with the requirements listed in the preceding paragraph. 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 second paragraph of this report. With respect to items not tested,nothing came to our attention that caused us to believe that the City of Fridley, Minnesota had not complied,in all material respects,with those requirements. This report is intended for the information of the City of Fridley, Minnesota and the Federal — Cognizant Audit Agency. However,this report is a matter of public record and its distribution is not limited. ` TAUTGES,REDPATH&CO.,LTD. Certified Public Accountants May 15, 1992 143 4810 White Bear Parkway • White Bear Lake, Minnesota 55110 • 612/426-7000 • FAX/426-5004 TAUTGES, REDPATH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS 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, 1991, and have issued our report thereon dated May 15, 1992. These general purpose financial statements are the responsibility of the City of Fridley, Minnesota's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and 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. -j 4 A•01/4 fd.« TAUTGES, REDPATH&CO.,LTD. Certified Public Accountants May 15, 1992 145 4810 White Bear Parkway • White Bear Lake, Minnesota 55110 • 612/426-7000 • FAX/426-5004 TAUTGES, REDPATH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Compliance Report Based on an Audit of General 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,Minnesota as of and for the year ended December 31, 1991,and have issued our report thereon dated May 15, 1992. 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, Minnesota is the responsibility of the City of Fridley,Minnesota'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. Accordingly,we do not express such an opinion. The results of our tests indicate that,with respect to the items tested,the City of Fridley,Minnesota 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 and the Federal Cognizant Audit Agency. This restriction is not intended to limit the distribution of this report, which,is a matter of public record.' TAUTGES,REDPATH&CO.,LTD. Certified Public Accountants May 15, 1992 147 4810 White Bear Parkway • White Bear Lake, Minnesota 55110 • 612/426-7000 • FAX/426-5004 Exhibit K-1 CITY OF FRIDLEY, MINNESOTA SCHEDULE OF FEDERAL GRANT INFORMATION For The Year Ended December 31, 1991 Catalog# Accrued Accrued Federal Funding Source/ Federal Revenue at Revenue at Pass Through Agency/ Domestic December 1, Revenue December 31 Program Title Assistance 1991 Recognized Expenditures 1991 U.S. Department of Housing and Urban Development: Anoka County: Community Development Block Grant- Entitlement Grant 14.219 $11,656 $136,899 $137,574 $15,703 Metropolitan Council Housing and Redevelopment Authority: Housing Assistance Payments Program for Low Income Families 14.156 7,951 28,848 28,848 3,201 Total Department of Housing and Urban Development 19,607 165,747 166,422 18,904 U.S. Department of Health and Human Services: Greater Minneapolis Council of Churches: Special Programs for the Aging-Title III, Part C - Nutrition Services 13.635 2,016 8,394 8,394 U.S. Department of Transportation Anoka County State and Community Highway Safety(A.T.A.C.) 20.600 7,611 7,611 Federal Emergency Management Association: Minnesota Department of Public Safety: _. Civil Defense 83.516 5,545 5,545 Total Federal Assistance $21,623 $187,297 $187,972 $18,904 149 Exhibit K-2 CITY OF FRIDLEY. MINNESOTA SCHEDULE OF ASSESSED VALUATION AND LONG-TERM DEBT FOR THE TAX INCREMENT FINANCING DISTRICT DECEMBER 31, 1991 Redevelopment District Original Tax Capacity $1,967,994 — Current Tax Capacity 5,014,881 Captured Tax Capacity- retained by the Authority 2,840,383 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 (3,005,000) Bonds defeased-prior (23,280,000) Total amount redeemed (26,285,000) Outstanding bonds at December 31, 1991 $12,290,000 150 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. 1991 Current Year Prior Years Total Sources of Funds: Proceeds of refunding bonds $40,199,956 $40,199,956 Tax increments received 2,662,381 10,051,939 12,714,320 Special assessments 69,591 69,591 Interest on invested funds 359,854 4,315,376 4,675,230 Real estate sales 117,500 384,471 501,971 Rental 108,414 354,872 463,286 Home ownership revenue 10,125 10,125 Other 409 306,619 307,028 Total sources of funds 3,318,149 55,623,358 58,941,507 _ Uses of Funds: Land acquisition 54,087 10,733,148 10,787,235 Building acquisition 125,000 1,068,971 1,193,971 _ Site improvements or preparation costs 19,590 3,956,879 3,976,469 Installation of public utilities and improvements 1,096,775 1,096,775 Bond payments Principal 245,000 13,690,000 13,935,000 Interest and fiscal charges 895,836 5,884,476 6,780,312 Refunding bond issuance cost 83,655 83,655 Payment to refunded bond escrow agent 9,257,980 9,257,980 Refund to school districts 310,272 469,195 779,467 Refund of tax increment overpayment 94,897 94,897 Administrative costs 265,193 3,057,339 3,322,532 Other 85,537 543,341 628,878 Total uses of funds 2,000,515 49,936,656 51,937,171 District Balance $1,317,634 $5,686,702 $7,004,336 151 STATISTICAL SECTION Table 1 CITY OF FRIDLEY. MINNESOTA GENERAL GOVERNMENT EXPENDITURES BY FUNCTION (11 LAST TEN FISCAL YEARS Fiscal General Public Civic Public Community Recreation, Debt Year Government Safety Center Works(2) Development(3) Naturalist Service Total 1982 $1,021,552 $1,939,996 $115,893 $1,129,875 $ $911,141 $647,629 $5,766,086 1983 796,799 2,148,834 156,708 1,414,165 910,204 773,998 6,200,708 _ 1984 850,963 2,201,155 149,332 2,054,223 442,917 835,729 6,534,319 1985 985,091 2,270,691 162,220 2,212,406 535,801 768,547 6,934,756 1986 1,877,676 2,576,847 180,839 1,886,888 535,430 1,515,823 8,573,503 1987 1,927,147 2,707,681 160,222 1,992,949 530,066 2,248,809 9,566,874 1988 2,366,779 2,741,465 205,654 2,014,957 589,771 2,803,027 10,721,653 1989 2,013,513 3,030,507 273,095 2,222,203 628,397 3,181,419 11,349,134 1990 2,470,439 3,008,700 173,260 2,592,638 641,432 15,789,169 24,675,638 1991 2,566,435 3,233,501 165,968 2,213,994 422,381 655,985 1,866,305 11,124,569 Notes (1) Includes General, Special Revenue, Special Assessment, Capital Projects and Debt Service Funds and excludes capital outlay. (2) Beginning in 1983, Parks Maintenance activity is included with Public Works. (3) Prior to 1991, Community Development was included with Public Works. 153 Table 2 • CITY OF FRIDLEY GENERAL REVENUE BY SOURCE(1) LAST TEN FISCAL YEARS — General Property Taxes& Intergovem- Fiscal Special Licenses mental Charges For Miscellaneous — Year Assessments &Permits Revenue Services Revenue Total 1982 $3,443,524 $360,949 $2,258,228 $145,551 $2,243,001 $8,451,253 — 1983 3,552,876 320,964 3,145,321 131,018 2,212,796 9,362,975 1984 4,069,579 411,054 3,570,422 145,394 2,247,486 10,443,935 1985 4,269,937 422,606 3,402,703 153,483 2,506,575 10,755,304 -" 1986 4,885,669 358,962 3,652,179 157,829 3,571,207 12,625,846 1987 4,767,980 405,583 3,302,438 164,617 3,086,280 11,726,898 1988 5,296,520 378,553 3,744,038 160,255 2,938,911 12,518,277 — 1989 7,353,139 477,192 4,968,720 158,663 2,682,242 15,639,956 1990 6,900,089 408,966 3,564,426 630,015 2,570,467 14,073,963 1991 7,301,508 425,023 3,445,972 784,962 3,031,408 14,988,873 — Note — (1) Includes General, Special Revenue, Capital Projects, Debt Service and Special Assessment Funds. 154 Table 3 CITY OF FRIDLEY. MINNESOTA CERTIFIED PROPERTY TAX LEVIES AND COLLECTIONS — LAST TEN FISCAL YEARS Ratio Current Percent Collection of Total Outstanding — Fiscal Certified Tax of Levy of Prior Total Collections Delinquent Year Tax levy Collections(1X2) Collected Year's Taxes Collections to Tax Levy Taxes — 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 — 1991 4,751,465 4,620,032 97.23% 12,633 4,632,665 .9750:1 320,081 (3) — Notes (1) Includes Homestead Credit. _„ (2) Excludes collections from properties pledged to tax increment. (3) Taxes were adjusted$99,573 by Anoka County due to abatements and court ordered settlements. See Footnote 1.F.2. — 155 CITY OF FRIDLEY. MINNESOTA ESTIMATED MARKET VALUE AND TAXABLE VALUE OF ALL PROPERTY — LAST TEN FISCAL YEARS Fiscal Year Payable 1982 1983 1984 1985 Assessment Year 1981 1982 1983 1984 Population,fiscal year 29,920 29,810 29,750 29,440 Real Property: Estimated market value $723,016,622 $776,074,092 $802,180,000 $807,910,500 Taxable value- Homestead $65,308,228 $94,445,737 $94,343,673 $91,923,166 Excess and non-homestead 142,031,048 126,066,013 130,295,079 132,234,317 Less fiscal disparities contribution (20,695,684) (25,629,645) (27,102,595) (29,835,444) Less tax increment value (2,892,948) (3,951,300) (2,765,895) (5,458,497) Taxable value $183,750,644 $190,930,805 $194,770,262 $188,863,542 Personal property: Estimated market value $19,328,400 $19,741,300 $21,263,600 $21,534,300 — Taxable value $8,311,212 $8,488,759 $9,143,348 $9,259,749 Totals: Estimated market value $742,345,022 $795,815,392 $823,443,600 $829,444,800 Taxable value $192,061,856 $199,419,564 $203,913,610 $198,123,291 r Per market value ratios -- Taxable value .259:1 .251:1 .248:1 .239:1 Per capita valuations — Estimated market value $24,811 $26,696 $27,679 $28,174 Taxable value $6,419 $6,690 $6,854 $6,730 — Real property Taxable value- — Fiscal disparities distribution $11,355,678 $12,509,174 $15,369,625 $18,142,244 Notes (1) The Minnesota Legislature enacted legislation which changed the method of computing property taxes in 1988, 1989 and 1990. Those changes have been reflected — in the computation of the taxable value for taxes payable in 1989, 1990 and 1991. (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, 1990 upon which the 1991 levy was based was$20,578,914. 156 Table 4 1986 1987 1988 1989 1990 1991 - 1985 1986 1987 1988(1) 1989(1) 1990(1) 29,423 29,310 29,336 29,250 28,335 28,313 $839,392,000 $879,498,600 $907,274,900 $941,136,600 $998,231,500 $1,002,812,900 $91,343,841 $94,010,922 $94,216,387 $11,864,707 $6,858,848 $7,009,982 143,450,918 153,262,018 152,658,373 19,425,676 19,728,534 20,147,442 - (29,730,694) (34,112,779) (37,235,245) (4,351,931) (4,435,055) (4,853,513) (9,032,222) (11,348,839) (14,921,389) (2,524,911) (2,368,717) (2,840,385) - $196,031,843 $201,811,322 $194,718,126 $24,413,541 $19,783,610 $19,463,526 $26,208,700 $26,531,000 $26,731,000 $26,452,800 $27,116,700 $27,606,700 $11,245,936 $11,393,525 $11,479,525 $1,385,766 $1,369,388 $1,115,388 $865,600,700 $906,029,600 $934,005,900 $967,589,400 $1,025,348,200 $1,030,419,600 - $207,277,779 $213,204,847 $206,197,651 $25,799,307 $21,152,998 $20,578,914 .239:1 .235:1 .221:1 .027:1 .021:1 .020:1 $29,419 $30,912 $31,838 $33,079 $36,187 $36,393 $7,045 $7,274 $7,029 $882 $747 $727 $18,296,235 - $20,639,055 $23,382,622 $3,428,008 $3,817,118 $4,079,539 157 CITY OF FRIDLEY, MINNESOTA SIGNIFICANT MINNESOTA TAX POLICIES — DECEMBER 31, 1991 GENERAL All non-exempt property in Minnesota is subject to taxation by local taxing districts. Properties are physically reviewed by assessors at least once every four years. The assessors market value is — multiplied by the appropriate class rates to arrive at the adjusted net tax capacity (taxable value). The class rates vary by class of property. — A tax rate is determined by the County Auditor by dividing each taxing jurisdictions tax levy by the jurisdiction's adjusted net tax capacity. The taxes on a property are then computed by multiplying this tax rate by the property's tax capacity. The schedule below shows some of the major classes of property and their applicable class rates. Type of Property 1991 Class Rates Residential Homestead — First $68,000 1.00% $68,000 - 110,000 2.00 — Over $110,000 3.00 Commercial/Industrial First $100,000 3.20 Over $100,000 4.95 — 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. — 158 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 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% 1991 15.832% 51.779% 53.249% 49.727% 49.867% 31.400% - 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 - 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 1991 4,747,965 586,640 3,353,377 6,279,991 3,477,136 9,717,317 _ Notes - (1) 1982-1988 tax rates are expressed as mills; 1989- 1991 rates are expressed as tax capacity rates. (2) VocationalTechnical 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. - 160 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) - 4.057 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 5.597 113.334 112.022 118.743 122.169 4.679% 95.813% 95.908% 99.737% 97.756% - 4.399% 95.851% 89.554% 91.383% 92.498% 4.767% 103.420% 105.226% 101.704% 101.844% Net - Total Total Yearly Contribution Tax Total Special All Local Percentage To Metro Increment Tax Districts Tax Levies Change Tax Pool Districts Levies - 779,684 19,406,590 20.38% 925,052 304,517 20,636,159 822,414 21,291,689 9.71% 1,402,913 340,539 23,035,141 - 1,044,451 22,988,695 7.97% 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 1,430,252 29,592,678 4.26% 122,535 2,662,381 32,377,594 161 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 Assessment Assessments 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 - 1991 737,712 652,011 88.38% 28,616 680,627 92.26% 215,764 162 CITY OF FRIDLEY, MINNESOTA HISTORY OF CERTIFIED TAX LEVIES AND TAX RATES LAST TEN FISCAL YEARS 1982 1983 1984 1985 7 Certified tax levies General Fund $2,838,504 $3,070,254 $3,071,882 $3,083,270 General Debt Service Funds 37,352 36,300 36,300 35,175 Capital Improvement Fund 44,770 44,770 44,770 44,982 Subtotal 2,920,626 3,151,324 3,152,952 3,163,427 Agency Fund 14,898 Total $2,920,626 $3,151,324 $3,152,952 $3,178,325 Mill rate(1980-1988); Tax Capacity Rate (1989-1991) — General Fund 13.877 14.525 13.970 14.283 General Debt Service Funds 0.183 0.172 0.166 0.163 Capital Improvement Fund 0.218 0.211 0.204 0.208 — Subtotal 14.278 14.908 14.340 14.654 Agency Fund 0.240 Total 14.278 14.908 14.340 14.894 164 Table 7 1986 1987 1988 1989 1990 1991 $3,141,859 $3,311,826 $3,345,190 $3,556,166 $4,421,519 $4,660,276 35,628 45,521 85,542 86,320 87,689 87,689 87,689 3,223,008 3,397,368 3,431,510 3,643,855 4,509,208 4,747,965 9,869 9,457 8,597 8,597 3,439 3,500 $3,232,877 $3,406,825 $3,440,107 $3,652,452 $4,512,647 $4,751,465 13.895 14.188 14.614 12.192% 14.705% 15.548% 0.158 0.203 0.367 0.378 0.300% 0.290% 0.284% 14.256 14.555 14.992 12.492% 14.995% 15.832% 0.074 0.075 0.066 0.052% 0.015% 0.022% 14.330 14.630 15.058 12.544% 15.010% 15.854% 165 CITY OF FRIDLEY, MINNESOTA RATIO OF NET GENERAL BONDED DEBT TO TAXABLE VALUE 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 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 (1) 30,060,000 -0- 30,060,000 1990 28,335 21,152,998 (1) 15,765,000 -0- 15,765,000 1991 28,313 20,578,914 (1) 17,715,000 -0- 17,715,000 -- 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- 1991. 166 • Table 8 Ratio of Net General Bonded Net General — Net General Debt to Total Bonded Debt Bonded Debt Taxable Value Per Capita — $57,745 0.03% $1.93 20,760 0.01% 0.70 -0- - - — -0- - - -0- - - -0- - - -0- - - -0- - - -0- - - — -0- - - • 167 Table 9 CITY OF FRIDLEY.MINNESOTA — COMPUTATION OF LEGAL DEBT MARGIN DECEMBER 31. 1991 Market Value $1,030,419,600 (A) Debt Limit 2% of Market Value $20,608,392 Amount of Debt Applicable to Debt Limit: — Total Bonded Debt $17,715,000 (B) Deductions: — Tax Increment Redevelopment Bonds $9,485,000 Special Assessment Bonds 3,810,000 Revenue Bonds 4,420,000 17,715,000 — Total Amount of Debt Applicable to Debt Limit _0_ Legal Debt Margin $20,608,392 Notes (A) M.S.A. Section 475.53(see following page) (B) M.S.A. Section 475.51 (see following page) 168 CITY OF FRIDLEY, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED) YEAR ENDED DECEMBER 31, 1991 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.' 169 Table 10 CITY OF FRIDLEY. MINNESOTA — COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT AND COMPARATIVE DEBT RATIOS DECEMBER 31. 1991 — Debt % 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 $13,295,000 $3,054,698 $10,240,302 100.00% $10,240,302 Overlapping debt: — School Districts No. 11 $65,208,635 $5,074,852 $60,133,783 1.16% $697,552 No. 14 155,000 207,225 No. 16 5,350,000 1,753,455 3,596,545 36.80% 1,323,529 Metro Transit 7,550,000 3,207,000 4,343,000 1.29% 56,025 — Metro Council 457,585,000 65,084,300 392,500,700 1.19% 4,670,758 Anoka County 55,881,927 3,032,853 52,849,074 18.04% 9,533,973 — North Suburban — Hospital District 14,338,960 1,252,220 13,086,740 44.73% 5,853,699 Vocational/Technical District No. 916 12,435,000 954,378 11,480,622 2.21% 253,722 Overlapping debt 618,504,522 80,566,283 537,990,464 22,389,257 Total direct and — overlapping debt $631,799,522 $80,566,283 $537,990,464 $22,389,257 • 170 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 1982 $44,845 $566,784 $611,629 $5,766,086 .1061.1 1983 35,000 738,998 773,998 6,200,708 .1248.1 1984 85,000 750,729 835,729 6,534,319 .1279.1 — 1985 120,000 648,547 768,547 6,934,756 .1108.1 1986 215,000 1,300,823 1,515,823 8,573,503 .1768.1 1987 740,000 1,508,809 2,248,809 9,566,874 .2351.1 — 1988 1,380,000 1,423,027 2,803,027 10,721,653 .2614.1 1989 1,640,500 1,540,919 3,181,419 11,349,134 .2803.1 1990 14,720,000 1,069,169 15,789,169 24,675,638 .6399.1 — 1991 685,000 1,181,305 1,866,305 11,124,569 .1678:1 Notes (1) Includes General, Special Revenue, Debt Service, Capital Projects and — Special Assessment Funds. — 171 — 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 (1) Expenses (2) Service Principal Interest Total Coverage 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) 1991 3,115,437 3,408,068 (292,631) - 148,449 148,449 - Notes (1) Total operating revenue exclusive of interest on investments. — (2) Total operating expenses including depreciation. - 172 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) 1982 29,920 $8,750 28.0 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) 32.6 (2) 4,371 4.5% 1991 28,313 N/A (8) 32.6 (2) N/A (8) 4.5% Sources: (1) Estimated by Metropolitan Council (2) 1990 Population Report- Bureau of the Census (3) Estimated-excludes Grace Parochial High School as it is not supported by 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 (7) National Planning Data Corporation (8) 1990 Census information was not available at the time of publication 173 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 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 1,042,724,540 1987 54 9,845,600 435 23,413,715 33,201 906,029,600 177,123,840 1,083,153,440 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 1991 75 11,946,068 360 2,525,711 33,520 1,030,419,600 177,123,840 1,207,543,440 ., Sources: (1) Fridley State Bank (2) Non-taxable property is reevaluated by the county assessors every six years • 174 Table 15 CITY OF FRIDLEY, MINNESOTA PRINCIPAL TAXPAYERS DECEMBER 31, 1991 Fiscal Year 1991 Percent 1990* of Total Taxable Taxable Rank Taxpayer Type of Business Valuation Valuation** 1 Medtronic, Inc. Electro-medical devices $1,136,750 4.02% 2 Dayton Hudson Target discount store,warehouse and office 934,587 3.31% 3 Onan Corporation Portable electric generators 902,437 3.19% 4 Burlington Northern Railroad Operating property 816,193 2.89% 5 FMC Corporation Naval ordinance 712,490 2.52% 6 Dow Brands Cosmetics 563,649 1.99% 7 University Avenue Associates Springbrook apartments 476,460 1.69% 8 Maurice Fillister Georgetown apartments 403,726 1.43% 9 East River Road Business Center Business and retail complex 314,204 1.11 10 Holiday Plus Discount department store 283,325 1.00% Total $6,543,821 23.15% Notes * The 1991 levy was based upon the January 2, 1990 taxable value. *" Before contribution to Metropolitan Tax Pool and tax increment financing 175 CITY OF FRIDLEY, MINNESOTA INSURANCE COVERAGE — DECEMBER 31, 1991 All risk perils, 100% coinsurance — Buildings and contents Blanket, agreed amount endorsement, replacement cost coverage $19,536,013 Contractor's equipment 921,557 — Boiler and machinery 3,000,000 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, 1991 All employees are covered by a blanket of faithful performance bond of$100,000. 176 CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION DECEMBER 31.1991 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 II November 5, 1991 Registered voters 5,845 Number of votes cast 308 Percent(%)of registered voters voting 5.3% 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 1985 Estimated by Metropolitan Council 29,440 1986 Estimated by Metropolitan Council 29,423 1987 Estimated by Metropolitan Council 29,310 1988 Estimated by Metropolitan Council 29,336 1989 Estimated by Metropolitan Council 29,250 1990 Federal Census 28,335 1991 Estimated by Metropolitan Council 28,313 Permanent Employees—As of December 31 Number 1982 123 1983 119 — 1984 119 1985 125 1986 125 1987 125 1988 126 1989 126 1990 126 -- 1991 137 177 CITY OF FRIDLEY. MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION (Continued) DECEMBER 31, 1991 — Fire protection Number of stations 3 "' Paid on call firefighters 32 Full-time firefighters 5 — Fire rating Class 4 Police protection Number of stations 1 — Number of sworn officers 33 Number of street lights 1039 — 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 125.52 — Trunk highways 10.79 County roads 14.56 Sidewalks 10.98 _ Miles of sewer Storm 42.68 — Sanitary 102.62 Miles of water mains 109.94 Municipal water system source Primary source City of Fridley Water Plant (13 wells)--capacity of 15 million gallons per day — Number of water connections December 31, 1991 8,218 connections Daily average consumption 6.9 million gallons Elevated storage capacity 2 million gallons Water storage reservoirs 4.5 million gallons Number of fire hydrants 1,071 — Municipal sewer system Disposal --through Metropolitan Waste Control Commission Number of connections December 31, 1991 7,966 connections — Average daily flow(includes infiltration/inflow) 3.15 million gallons 178 CITY OF FRIDLEY, MINNESOTA GENERAL INFORMATION(CONTINUED) DECEMBER 31, 1991 Larger Employers Larger employers in the City of Fridley include: Full-Time Employer Product or Service Employees FMC Corporation Pumps and naval ordinance 2,430 Onan Corporation Portable generators, electronic equipment 1,600 Medtronics, Inc. Electro-medical devices and hdqtrs. 1,808 Burlington.Northern Railroad Northtown yard 1,200 Unity Hospital Medical services 801 Kurt Manufacturing Machine parts 490 Dow Brands Cosmetics 400 Target Stores, Warehouse Discount department store 257 Minco Products, Inc. Electronic devices 534 Independent School District#14 Fridley school district 236 Safetran Systems Corporation Railroad accessories 240 Longview Fiber Company Packaging supplies 146 City of Fridley Governmental entity 137 Snyder General Corporation Air moving devices 164 179 CITY OF FRIDLEY. MINNESOTA GENERAL INFORMATION DECEMBER 31. 1991 Location - Transportation The City of Fridley, with a total land area of eleven square miles and an estimated population of 28,313, is located at the northern boundaries of Minneapolis and Columbia Heights, about eight miles from the Minneapolis central business district. Freight service is provided in the area by local and interstate truck lines and Burlington Northern Railroad. Commuter transportation is available through Metropolitan Transit Commission facilities. Highways serving Fridley include interstate #694 (beltline around the metropolitan area) and State Highways. An International Airport, located approximately twenty-five _ miles south of Fridley, and private business aviation facilities located at the Anoka County and Crystal Airports, provide air transportation and are operated by the Metropolitan Airport Commission. Medical Facilities Medical facilities in Fridley include Health One Unity Hospital, a 275-bed hospital with an adjacent clinic (Unity Professional Building), Fridley Plaza Clinic, Fridley Convalescent Home, the Fridley Medical Center, and Lynwood Health Care Center. Education Fridley is served by four school districts, a major portion of the City is located within Fridley Independent School District No. 14. The Fridley School District operates two elementary schools, a junior high and senior high school, employing 166 certified personnel in the education of about 2,516 students. Grace Parochial High School has an enrollment of approximately 805. Portions of the Columbia Heights School District (13), the Spring Lake Park School District (16) and Anoka/Hennepin — School District (11) also lie within the City of Fridley. Those districts have an estimated enrollment of 1,800 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. • • 180 CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION DECEMBER 31, 1991 Parks and Recreation Areas Developed 425 Acres Undeveloped 125 Acres Total 550 Acres City Parks Schools Total Number of: Hockey rinks 6 0 6 General skating rinks 17 1 18 Playgrounds 27 8 35 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 19 9 28 Tennis courts 24 19 43 Horseshoe courts 16 0 16 Archery ranges 1 0 1 — Permanent playground buildings 2 0 2 Permanent shelters 17 0 17 Soccer fields 6 2 8 Football fields 7 8 15 181