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FOR THE YEAR ENDED
1% DECEMBER 31, 1985
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CITY OF FRIDLEY, MINNESOTA
Comprehensive Annual Financial Report
December 31, 1985
Prepared by:
Department of Finance
Richard D. Pribyl
Director of Finance
Julie M. Burt
Assistant Finance Officer
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1985
TABLE OF CONTENTS
EXHIBIT PAGE
INTRODUCTORY SECTION
List of Elected and Appointed Officials 1
Organizational Structure 2
City Manager's Letter of Transmittal 5
Chief Executive Officer's Letter of Transmittal 7
-" Certificate of Conformance 23
FINANCIAL SECTION
Auditors' Opinion 25
r-- Combined Financial Statements - Overview
(General Purpose Financial Statements)
Combined Balance Sheet - All Fund Types and
Account Groups A-1 28
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - All Governmental
Fund Types and Expendable Trust Funds A-2 32
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - Budget and
Actual - General and Special Revenue Fund Types A-3 34
Combined Statement of Revenues, Expenses
and Changes in Retained Earnings - All
Proprietary Fund Types A-4 36
Combined Statement of Changes in Financial
Position - All Proprietary Fund Types A-S 37
Notes to Financial Statements 38
Financial Statements of Individual Funds:
General Fund:
Comparative Balance Sheet B-1 61
Statement of Revenues, Expenditures and
'-' Changes in Fund Balance - Budget and Actual B-2 62
Schedule of Revenues and Other Financing
*,. Sources - Budget and Actual B-3 63
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1985
TABLE OF CONTENTS (CONTINUED)
EXHIBIT PAGE
Schedule of Expenditures and Other Financing
Uses - Budget and Actual B-4 65
Special Revenue Funds:
Combining Balance Sheet C-1 70
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances C-2 72
Municipal State Aid Fund:
Comparative Balance Sheet C-3 74 _
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual C-4 75
Revenue Sharing Fund:
Comparative Balance Sheet C-5 76 —
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual C-6 77
Cable TV Fund:
Comparative Balance Sheet C-7 78
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual C-8 79
Home Ownership Fund:
Comparative Balance Sheet C-9 80
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual C-10 81 —
Housing and Redevelopment Authority Fund:
Comparative Balance Sheet C-11 82
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual C-12 83
Debt Service Funds:
Combining Balance Sheet D-1 85
CITY OF FRIDLEY, MINNESOTA
'— COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1985
TABLE OF CONTENTS (CONTINUED)
EXHIBIT PAGE
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances D-2 86
Capital Projects Funds:
Combining Balance Sheet E-1 88
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances E-2 90
Special Assessment Funds:
Combining Balance Sheet F-1 95
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances F-2 96
Enterprise Funds:
._ Combining Balance Sheet G-1 97
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings G-2 98
Combining Statement of Changes in
Financial Position G-3 99
Liquor Fund:
Comparative Balance Sheet G-4 100
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings G-5 101
Comparative Statement of Changes in
Financial Position G-6 102
Public Utilities Fund:
Comparative Balance Sheet G-7 103
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings G-8 104
Comparative Statement of Changes in
Financial Position G-9 105
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1985
TABLE OF CONTENTS (CONTINUED)
EXHIBIT PAGE
Internal Service Funds:
Combining Balance Sheet H-1 107
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings H-2 108
Combining Statement of Changes in
Financial Position H-3 109
Employee Benefits Fund:
Comparative Balance Sheet H-4 110 —.
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings H-5 111
Comparative Statement of Changes in
Financial Position H-6 112
Management Information Services Fund:
Comparative Balance Sheet H-7 113
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings H-8 114
Comparative Statement of Changes in
Financial Position H-9 115
Trust and Agency Fund:
Combining Balance Sheet I-1 117
Comparative Statement of Revenues, Expenditures
and Changes in Fund Balance I-2 118
Statement of Changes in Assets and Liabilities I-3 119
General Fixed Assets:
Comparative Statement of General Fixed Assets J-1 121
Schedule of General Fixed Assets - By Function
and Activity J-2 122
Schedule of Changes in General Fixed Assets -
By Function and Activity J-3 123
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1985
TABLE OF CONTENTS (CONTINUED)
TABLE PAGE
General Long-Term Debt:
— Comparative Statement of General Long-Term Debt K-1 125
SUPPLEMENTAL INFORMATION
Auditors' Report on Internal Control L-1 127
Auditors' Comments on Compliance L-2 129
Schedule of Federal Grant Activity L-3 131
Schedule of Assessed Valuation and Long-Term Debt
... for the Tax Increment Financing District L-4 132
Schedule of Sources and Uses of Public Funds
for the Tax Increment Financing District L-5 133
STATISTICAL SECTION
General Governmental Expenditures by Function -
Last Ten Fiscal Years 1 135
General Revenues by Source - Last Ten Fiscal Years 2 136
Certified Property Tax Levies and Collections -
Last Ten Fiscal Years 3 137
Assessed and Estimated Market Value of All Taxable
Property - Last Ten Fiscal Years 4 138
Statement of Valuations and Levies By Classes
of Property 5 140
Significant Minnesota Tax Policies 142
Property Tax Rates Per $1,000 of Assessed Value
and Calculated Tax Levies - All Overlapping
Governments - Last Ten Fiscal Years 6 144
Special Assessment Levies and Collections - Last
Ten Fiscal Years 7 146
History of Certified Tax Levies and Actual Mill
Rates - Last Ten Fiscal Years 8 148
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1985
TABLE OF CONTENTS (CONTINUED)
TABLE PAGE
Ratio of Net General Bonded Debt to Assessed
Values and Net Bonded Debt Per Capita -
Last Ten Fiscal Years 9 150 _
Computation of Legal Debt Margin 10 152
Computation of Direct and Overlapping Bonded Debt
and Comparative Debt Ratios 11 154
Ratio of Annual Debt Service Expenditures for --
General Bonded Debt to Total General Government
Expenditures - Last Ten Fiscal Years 12 155
Revenue Bond Coverage - Last Ten Fiscal Years 13 156
Demographic Statistics - Last Ten Fiscal Years 14 157
Construction, Bank Deposits and Property Value -
Last Ten Fiscal Years 15 158
Principal Taxpayers 16 159
Insurance Coverage 160
City Capital Improvement Financing Policy 161
Miscellaneous Statistical Information 162
General Information 165
INTRODUCTORY SECTION
4
CITY OF FRIDLEY, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
DECEMBER 31, 1985
ELECTED OFFICIALS
Term of Office
Expires December
_ Mayor William J. Nee 1986
Councilmember At Large Robert L. Barnette 1986
Councilmember, Ward I Brian A. Goodspeed 1987
Councilmember, Ward II Dennis L. Schneider 1985
Councilmember, Ward III Edward J. Fitzpatrick 1987
Effective January 1986
Mayor William J. Nee 1986
Councilmember At Large Robert L. Barnette 1986
Councilmember, Ward I Brian A. Goodspeed 1987
— Councilmember, Ward II Dennis L. Schneider 1988
Councilmember, Ward III Edward J. Fitzpatrick 1987
APPOINTED OFFICIALS
City Manager - Nasim M. Qureshi
City Attorney - Virgil C. Herrick
Prosecuting Attorney - Carl J. Newquist
Treasurer - Richard D. Pribyl
a
City Clerk - Shirley A. Haapala
Department Heads:
Director of Public Safety and
Civil Defense Director - James P. Hill
Fire Chief - Robert D. Aldrich
Director of Public Works - John G. Flora
Director of Recreation and Natural Resource - Charles A. Boudreau
... Director of Finance - Richard D. Pribyl
Division Heads:
City Planner - James L. Robinson
Public Works Superintendent - Ralph S. Volkman
Chief Building Official - Darrel G. Clark
Liquor Stores Manager - Robert L. McGuire
P.M
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...
II= CITY ADMINISTRATIVE
cIUYOF
FRIDLEY
Total Authorized Positions (126)
CITY MANAGER (7) ._
- Asst to City Manager - Economic Dev. Asst
- Sec. City Manager - Management Assistant
- Clerk Typist - City Clerk - --
I
FINANCE (21) POLICE (42)
L----Finance Director-Treasurer 1----Assistant City Manager-
Public Safety Director-
- MIS Technician Civil Defense Director
I- Acctg-Data Proc Clk L Sec. Police
- Receptionist-Lic Clk - Dep Pub Safety Dir
FINANCE (9) - Lieutenant
Asst Finance Officer
- (3) Sergeant
Finance Assistant
- (3) Corporal
General Accountant
- (23) Patrol Officer
Sr Utility Billing Clk
- Pub Sfty Projects Coor
Sr Assessment Clk..___
- Crime Prev Spec
Accounting Specialist
- Police Technician
Acctg-Data Proc Clk --
- (2) Senior Office Asst
Acctg-Data Input Clk
- (4) Office Asst
Acctg-Data Input Clk
ASSESSING (3)
-Assessor --
- Appraiser
- Tax Assessment Clk
LIQUOR (4)
- LQ Store Manager
- LQ Store Coordinator
- Head LQ Clerk
- LQ Store Clerk
2
ORGANIZATIONAL STRUCTURE 1985
I I
FIRE (6) PUBLIC WORKS (44) RECREATION & NATURALIST (6)
I Fire Chief Director ofI Public Works �Dir of Rec & Nature
.... - Dep Fire Chief ` Oper. Analyst ` Sec Rec & Nature
Sec. Public Works
- Captain —NATURALIST (2)
—ENGINEERING (3)
- (2) Firefighter Naturalist-Res Cor
- Asst Pub Works Dir
- Cik Typist II Interpretive Spec
(Civil Defense) - Enigineering Tech
Eng Aide-Admin —RECREATION (2)
—CODE ENFORCEMENT (3) Rec Supervisor
Chief Bldg Official Program Supervisor
- Plumbing Inspector Park Foreman (7)
Clerk-Secretary - Senior Parkeeper
— —PLANNING (3) - (2) Opr-Maint Spec
City Planner - (3) Opr-Maint Per
- Planning Coor
- Clerk-Secretary
ISuperintendant oft.
Public Works (32) Street Foreman (13) [—Water Foreman (5) L–Sewer Foreman(5)
Clerk-Secretary - Sr Street Opr - Sr Water Opr (2) Sr Sew Opr
- (3) Hvy Equip Op - Opr & Maint Spec (2) Opr & Main
Person
Opr & Maint Spec - (2) Opr & Maint
Person
(4) Opr & Maint
Person
(2) Mechanics
Opr & Maint Spec I
3
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OMNI CITYOF
FRIDLEY
CIVIC CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY,MINNESOTA 55432 • PHONE(612)571-3450
May 14, 1986
The Honorable Mayor and City Council
City of Fridley
Fridley, Minnesota 55432
Gentlemen:
In accordance with the Charter, we hereby transmit the
Comprehensive Annual Financial Report of the City of
Fridley for the year ending December 31, 1985.
The Report includes an excellent and comprehensive letter
from Mr. Richard D. Pribyl, Director of Finance and Julie
M. Burt, Assistant Finance Officer, which assists in a
ready understanding of the several accounts and funds and
matters covered by the Report . I would express
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 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,
jul amz •
Nasim M. Qureshi
City Manager
5
CITY OF
FRIDLEY
ame
CIVIC CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY,MINNESOTA 55432 • PHONE(612)571-3450
May 14, 1986
Mr. Nasim M. Qureshi, City Manager
Mayor William J. Nee and Council Members
Fridley, Minnesota 55432
Dear Mr. Qureshi, Mayor Nee and Council Members:
The Comprehensive Annual Financial Report of the City of Fridley Minnesota,
for the fiscal year ending December 31, 1985, 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 Auditors Office. The Government Finance Officers
Association awards Certificates of Conformance 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 Conformance for its
_ annual financial report for the fiscal year 1984. It is my belief that the
accompanying fiscal year 1985 financial report continues to meet program
standards and it will be submitted to the Government Financial Officers
Association for review.
The Report was prepared by the City's Finance Staff and consists of three
sections:
Section I is the introductory section and contains the table of
contents, letter of transmittal, and other appropriate material.
�.. Section II is the financial section and contains the accountant's
opinion, the combined financial statements, notes to the financial
statements, combining statements, individual funds 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.
7
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.
ACCOUNTING SYSTEM AND BUDGETARY CONTROL -"
The accounting sytem provides for a complete self-balancing account group for
each fund of the City. Accounting records are maintained on the modified —
accrual basis for the governmental type funds and the trust and agency funds,
and the accrual basis of accounting is utilized for the proprietary type funds
as defined in the notes to the financial statements.
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 judgements by management.
All internal control evaluations occur within the above framework. We believe
that the City's internal accounting controls adequately safeguard assets and
provide reasonable assurance of the proper recording of financial —
transactions. 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) adequate funds have been appropriated, 2) the expenditure
is necessary, and 3) funds are available.
THE REPORTING ENTITY AND ITS SERVICES
The funds and entities included in this comprehensive annual financial report —
are controlled by or dependent on the City of Fridley. This report follows
the criteria as set forth by the National Council on Governmental Accounting,
Statement 3 . Defining the Governmental Reporting Entity. As such , the —
8
- activities of the Fridley Housing and Redevelopment Authority (HRA) which is a
separate legal entity but is under the immediate control of the City Council
is included as a part of this statement. Financial information relating to the
Fridley Fire Relief Association and the Fridley Police Relief Association is
not presented in this report. In applying the criteria of oversight
responsibility to the two relief associations , it was determined that the
criteria were not applicable to them or any of the school districts that
either reside or overlap in the Fridley area. Since there was a lack of
criteria necessary to establish manifestation of oversight responsibility, the
above mentioned entities were excluded from this report.
The City provides a full range of municipal services. These include police,
fire, parks and recreation, public improvements, street maintenance, sanitary
_ sewer and water utilities, liquor sales, planning and general administrative
services.
CITY FINANCIAL PROSPECTS FOR FUTURE YEARS
The City of Fridley, our first ring metropolitan community, has bright
— prospects for the future. The city has in the past enjoyed the rewards of
attracting a large number of major commercial and industrial businesses . The
management has always had a goal of establishing a sound tax base over the
years and is now reafirming this commitment through our redevelopment program.
In the most recent years the city has been revitilizing the downtown area of
the city where the municipal office is located. It has become the hub of the
city with the recent completion of three major building complexes that house a
major medical facility, a three story office complex, and a three story
midwest headquarters for Target, Inc. The building theme has been cohesive
and is to this day attracting more major businesses to the downtown area.
During 1985, the city was successful in attracting a development corporation
into the last major piece of property in our redevelopment area . This
developer proposes to develop a multi-office complex that has a theme of an
office park. The location for this proposed complex is along the major
thoroughfare that passes through the city giving it very high visibility. The
city anticipates seeing a multimillion dollar project added to its tax base in
.._ the near future.
This form of activity within the city is consistent with the philosophy of
reducing our dependence on intergovernmental revenues (Federal and State) and
becoming more financially independent. Our city is an older metropolitan area
and as such has an infrastructure that was established a number of years ago.
The city has been prudent in setting aside funds for the replacement or
upgrading of these structures without the burden of additional mill levies.
The council adopted the 1985 appropriation ordinance based on the proposed use
of $312,426 of fund balance. Through effective cost cutting procedures and
increased revenue raising techniques, it was found to be unnecessary to use
any fund balance and in fact finished the year with a $691, 160 positive
variance adding to last years fund balance. We anticipate the oncoming year
to have the same positive outlook and to once again try to maximize the use of
— each dollar it receives and continue to provide a level of service that the
residents of this city can be proud of.
9
CASH MANAGEMENT 0
All temporary cash surpluses during the year are invested in various
securities which State statutes permit. The City's policy is to invest all
available monies at competitive interest rates in accordance with the City' s
over-all fiscal plan coordinated with operating needs and programs projected
over the ensuing 12 month period. Investment yields ranged from 7 . 00% to
12.6% during the year. The 1985 earnings shown with prior years ' earnings --
were distributed to the following fund types:
1985 1984 1983 1982
General $ 444,013 $ 397,975 $ 277,480 $ 236,197
Special Revenue 268,211 237,632 244,579 245,792
Debt Service 8,328 66,799 52,355 129,544
Capital Projects 160,640 150,467 148,778 153,484
Special Assessments 869,211 862,158 727,703 683,304
Enterprise 459,648 454,084 373,838 378,550 --
Internal Service 103,455 77,818 74,470 56,236
Expendable Trust 1,486 3,725 2,112 2,502
$2,314,992 $2,250,658 $1,901,315 $1,885,609 -
DEBT ADMINISTRATION -
Net general bonded debt per capita, and the percentage of the net general
bonded debt to assessed value are useful indicators of the City ' s debt
position. At December 31, 1985 the City of Fridley' s debt service funds
provided more capital than necessary to cover the net general bonded debt.
The City of Fridley issued three bonds during 1985 . In May, a Revenue Bond -
was sold in the amount of $4,070,000 that was used to refund the previously
issued Tax Increment General Obligation Bonds. In December, the City issued
two Variable Rate General Obligation Bonds , one issue was for General .,
Obligation Tax Increment Bonds in the amount of $11,550,000 and the other was
General Obligation Improvement Bonds issued in the amount of $3,100,000.
Remaining
Date of Amount Years Interest
Issue Outstanding of Issue Rate
1985 $11,550,000 15 Variable
1985 3,100,000 15 Variable
1985 4,070,000 15 5.50 - 9.00% _
1982 1,030,000 14 8.50 - 10.70%
1980 1,150,000 10 7.25 - 8.50%
1977 325,000 3 3.10 - 4.90%
1976 125,000 4 3.75 - 6.00% '"
1975 100,000 3 6.00%
1972 450,000 8 3.80 - 5.30%
1967 50,000 2 4.20 - 4.50%
1965 20,000 1 3.20 - 3.50%
1965 35,000 1 3.50%
1965 120,000 2 3.20 - 3.50%
$22,125,000
10
During 1985, the City was notified that Moody's Investor Service had continued
a bond rating of Aal which the City achieved during 1982.
As of December 31, 1985, the City had issued $66,725,000 in Industrial Revenue
Bonds which are permitted under Minnesota Statutes, Chapter 474. Listed below
are the bonds issued:
Company Date of Issue Amount
Safetrans 03/21/77 $ 1,500,000
Perlman Rocque 05/07/79 2,500,000
Medtronics 11/05/79 1,000,000
Simer Pump 06/02/80 550,000
._ G. T. A. 10/20/80 6,000,000
Win-Stevens Datsun, Inc. 01/12/81 600,000
WWH Properties 11/23/81 1,250,000
Webb Company 12/14/81 9,000,000
'-' LaMaur, Inc. 02/02/82 1,000,000
Gerald Paschke 05/03/82 750,000
Columbia Park Properties 06/07/82 4,000,000
Kuether Distributing, Inc. 10/04/82 2,000,000
73rd Avenue Partnership 10/25/82 1,500,000
ELO Engineering 09/12/83 1,300,000
Skywood Mall 11/21/83 7,000,000
Frank Shear Associates 12/19/83 2,175,000
Johnson Printing 12/19/83 2,400,000
Longview Fibre Company 03/26/84 3,200,000
River Road Investors 07/16/84 6,190,000
North Freeway Investors 07/16/84 7,730,000
Columbia Park Properties 12/16/85 4,360,000
-. Gerald W. Paschke, IV 720,000
$66,725,000
These Industrial Revenue Bonds are not a liability of the City and as such are
not pledged by the full faith and credit of the City. We act only as an
administrating agent in the issuance of these bonds . The bonds are a
liability of each company referenced above.
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.
The Fiscal Disparity Law has had the following impact on the taxable
valuations of the City for taxes collectible for years 1985 , 1984, 1983, and
1982:
11
1985 1984 1983 1982 '^
Taxable values-
City "'
Personal property $ 9,259,749 $ 9,143,348 $ 8,488,759 $ 8,311,212
Real estate 224,157,483 224,638,752 220,511,750 207,339,276
Less tax increment .,
project valuations (5,458,497) (2,765,895) (3,951,300) (2,892,948)
Subtotal City 227,958,735 231,016,205 225,049,209 212,757,540
Areawide allocation
Contribution to "Pool" (29,835,444) (27,102,595) (25,629,645) (20,695,684)
Distribution from "Pool" 18,142,244 15,369,625 12,509,174 11,355,678
Subtotal Pool (11,693,200) (11,732,970) (13,120,471) (9,340,006)
Total Taxable Value $216,265,535 $219,283,235 $203,417,534 $176,260,691
TAX INCREMENT DISTRICTS
The City Council took action on May 7 , 1979 to form the first of five tax
increment districts. In 1985 the five tax increment districts were combined
into one redevelopment district to more easily manage the overall activities,
also tax increment district number six was established. These districts were
formed 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. The Center City Tax Increment
Area has, in the past three years, been the site of one of the largest growth
areas within the City.
During the past three years, a clinic for a major health maintenance
organization and two multi-level office complex's have been completed. This
year, the Center City Area was the site of a potential six story apartment
building which will be combined with a retail sales center to be built around
the apartment structure.
GENERAL FUND
The General Fund accounts for all financial transactions not properly .,
accounted for in any other fund. Revenues (including transfers) of the
General Fund totaled $7 , 255 , 483 , an increase of $302 , 696 from 1984 .
Expenditures (including transfers) for the General Fund totaled $6,564,323, an
increase of $273,740 over the previous year. The fund balance increased by
$691,160 and was $6,083,983 at the end of the year.
The fund balance is used to provide working capital for the fund until tax --
settlements 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.
12
The following table shows the beginning-year General Fund Unreserved-
Undesignated balances as compared to the adopted budget of the year indicated.
—. Undesignated Fund Balance
General Beginning of Year
Fund Budget Amount % of Budget
1981 6,101,166 378,727 6.2
1982 6,180,388 994,413 16.1
1983 6,366,475 610,071 9.6
1984 7,230,491 1,531,908 21.2
1985 7,422,192 796,365 10.7
... The amount of revenue from various sources and the changes from the previous
year are summarized in the following table.
Increase
1985 Percent (Decrease)
Amount of Total from 1984 .
General property taxes $2,550,940 35.1 $ 34,056
Licenses and permits 367,224 5.1 7,619
Intergovernmental revenue 2,873,270 39.6 77,504
... Charges for services 153,483 2.1 8,089
Fines and forfeits 354,956 4.9 176,636
Interest on investments 444,013 6.1 46,038
Miscellaneous 136,082 1.9 37,391
Transfers 375,515 5.2 (84,637)
Total revenue $7,255,483 100.0% $ 302,696
General property taxes accounted for 35.1% of the General Fund revenues (36.2%
in 1984) and current tax collections were 96 .67% of the total tax levy for
1985.
Changes in levels of expenditures for major functions of the City over the
preceding year are shown in the following table.
Increase
1985 Percent (Decrease)
Expenditures by Function Amount of Total from 1984
General government $ 949,105 14.4 $142,706
— Public safety 2,270,691 34.6 69,536
Civic center 162,220 2.5 12,888
Public works 1,929,934 29.4 42,555
.. Recreation and Naturalist 535,801 8.2 92,884
Capital outlay 332,703 5.1 (158,815)
Transfers 383,869 5.8 71,986
.. $6,564,323 100.0% $273,740
..
—
13
The mill rates by purpose for the past two fiscal years are as follows:
Purpose 1985 1984
General Fund 14.283 13.970
General Debt Service .163 .166
Capital Improvement .208 .204
14.654 14.340
SPECIAL REVENUE FUNDS
amm
Purpose
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 provisions, or local ordinance to finance particular
functions or activities of government. —
Municipal State-Aid Fund
Gasoline tax collection apportioned to the City by the State of Minnesota for -
street construction is accounted for in this fund. Gasoline tax
apportionments used for maintenance purposes are accounted for in the General
Fund. Transfers are also made back to this fund from Special Assessment —
Funds. Such funds are derived from the excess of the construction funds
received from the State of Minnesota plus the special assessments levied less
the cost of the project. This excess is transferred back to the Municipal —
State-Aid Fund where the funds are earmarked for seal coating projects or the
City's share of sidewalk or street improvement projects.
The fund balance at December 31, 1985 was $1,247 ,186 which was an increase
from the previous year of $77,701. Revenues totaled $220,564, which is the
combination of State Aid and interest earned on the cash held in this fund.
The State Aid portion of the revenues decreased from the previous year by
$228,385. The expenditures from this fund were in the form of transfers to
other funds and decreased this year by $282,645.
Revenue Sharing Fund —
The Revenue Sharing Fund was established to account for the revenue received
from the Federal Government in accordance with the "State and Local Fiscal --
Assistance Act of 1972 . " Expenditure of these funds can be made only in
accordance with the provisions of that act. The City's share of these Revenue
Sharing funds for the year 1985 was $216,324, which was an increase from 1984 —
of $19,759.
Revenue Sharing funds are transferred from the Revenue Sharing Fund to the
General Fund where the detailed amounts are budgeted. During 1985, transfers Omml
of these types totaled $232,652.
The fund balance of December 31, 1985 was $41,836, which represents a decrease
of $4,090 from 1984.
14
Cable TV Fund
The Cable Television Fund was established to account for franchise fees (5% of
CATV subscriber revenues) . These revenues are dedicated to three uses : 1)
establish a comprehensive Broadband Telecommunications Network regulating
program, 2) develop and operate governmental and other access channels , 3)
establish a CATV Advisory Committee, advising the City Council on CATV
matters. As of December 31, 1985 the fund balance totaled $105,630.
Home Ownership Fund
The Home Ownership Fund was originally set-up to control all grant proceeds
and expenditures that were related to the home ownership and rehabilitation
function. This type of activity within the city has diminished to the point
where the function of this fund has changed in character. During 1985 , this
fund was used jointly with the reimbursement activity for providing
professional services from the city staff to the Fridley Housing and
Redevelopment Authority. The expenditures during 1985 in the form of
professional services were $28 ,429, of which there was an equal amount of
reimbursement for services rendered leaving the fund balance at December 31,
— 1985 at zero.
HRA Fund
The HRA Fund was established to account for the activity of the Fridley
Housing and Redevelopment Authority (HRA) . The Fridley HRA has established
six tax increment areas that are financing tax increment debt and project
costs. The major development has occurred over the past years in the Center
City area, this year negotiations took place that will create two multimillion
dollar projects. One of these projects is in our Center City area and the
other is in the 100 Twin area.
The City sold $11,550,000 in Variable Rate Tax Increment Bonds and a Capital
Appreciation Bond for $5,603,756. To meet the requirements of these bonds, we
have set up a reserve for debt service in the amount of $4, 045 , 603 . This
amount is based on a percentage of the outstanding principal and will be
transferred to the Debt Service Fund as the debt service requirements arise.
These bonds are being used to correct problems with site locations that have
in the past made certain prime locations undevelopable . The Tax Increment
Financing tool has been used very successfully within our city and without it
... numerous developments would not have occurred.
During 1985, revenues and other financing sources exceeded expenditures and
other financing uses by $12,085,889, leaving a fund balance at December 31, of
$12,803,975.
— DEBT SERVICE FUNDS
Purpose
The Debt Service Funds account for money devoted to the payment of interest
and principal on long-term general obligation debt (other than Special
Assessment Debt Service) .
The funds are used for the accumulation of monies for payment of general
obligation bonds and interest thereon. Property taxes provide the necessary
15
revenue. During 1985, revenues amounted to $208 , 364 , of which $28 ,460 was
from property tax collections. The City has two general obligation issues
outstanding which are carried in this fund. In May, a Revenue Bond was sold
in the amount of $4,070,000 that was used to refund the previously issued Tax
Increment General Obligation Bonds. In December, the City issued a Variable
Rate General Obligation Tax Increment Bond in the amount of $11, 550, 000.
There is also a $500,000 issue for the Civic Center dated May 1 , 1965 , with
1986 being its retirement year. On December 31, 1985, $35,000 was outstanding
on the Civic Center bond issue and $15 ,620 ,000 on the Tax Increment bond
issues. The fund balance at December 31, 1985 was $588,470.
CAPITAL PROJECTS FUNDS
Purpose
Capital Project Funds are used for acquisition and construction of capital
facilities other than those financed by Special Assessments and Enterprise
funds.
Capital Improvement Fund
This fund was established to account for the revenues and expenditures of a
revolving type Capital Improvement Fund. The City concluded that the current
and future cost of replacing or repairing many of the large assets owned by
the City is growing steadily. The monies set aside in this fund are to
finance future replacement of assets that are aging or have become obsolete. ._
During 1985, the Capital Improvement Fund transferred $250,000 to the Civic
Center Improvement Fund for remodeling the interior of City Hall . As of
December 31, 1985, the fund balance was $1,623,470.
Sears Fund
This fund was set up to account for revenues and expenditures relating to the
purchase and development of park land formerly owned by Sears Roebuck. The
objective of the City is to create a major outdoor athletic recreational ,_
facility. This facility includes six softball fields , four football fields
and a central building that houses pressboxes, a first aid room and concession
areas. The grounds have picnic areas and walking trails that tie into the
rest of the City's walkways. During 1985, $50,000 was received in donations —"
and there were no expenditures during the year, leaving a fund balance at
December 31, 1985 of $56,511. The park is being financed by donations from
civic organizations and private industry with additional commitments to be ._
received during 1986.
Civic Center Improvement Fund
This fund was established to account for the revenues and expenditures
relating to the improvement of the Fridley Civic Center. During 1985 , a
resolution was passed authorizing transfers of $250,000 from the reservations
of fund balance for fixed asset replacement of both the General Fund and
Capital Improvement Fund. During 1985, expenditures totaled $600, leaving a
fund balance at December 31, 1985 of $499,400. _
16
OWN
SPECIAL ASSESSMENT FUNDS
Special Assessment Funds are used to finance and account for the construction
'-' and financing of certain public improvements such as street improvements,
sidewalk improvements, storm sewers, and water and sewer lines which may be
paid wholly or in part from the special assessments levied against benefited
property. The fact that the special assessments are paid for completely or in
part by property owners in a limited geographical area who specifically
benefit distinguishes them from improvements which benefit the entire
community and which are paid for out of general revenue or through the
issuance of general obligation bonds.
The City employs the practice of self financing improvements during the
construction period of projects. Permanent bonds are normally issued after
the assessment rolls have been approved by the City Council and after the
initial prepayments of assessments have been made by property owners. This
- practice allows the City to keep the number of permanent bonds issued by the
City to a minimum. Construction in progress is shown in the General Fixed
Asset Group of Accounts.
Special Assessments Revolving Fund
The purpose of this fund is to provide temporary financing for small
- improvement projects undertaken by the City.
Special Assessments Fund
NMI
The Special Assessments Fund is used to account for the collection of
assessments against benefited property owners and the disbursement of
assessment collections for the payment of bonds and interest thereon. It also
— handles the receipt of bond proceeds and the disbursement of the proceeds for
construction work performed. During 1985, Variable Rate General Obligation
Improvement Bonds were issued in the amount of $3 , 100 ,000. The proceeds of
this issue will finance previous years construction projects that have been
internally financed.
_ The combined fund balances increased during 1985 by $709,496 bringing the
combined fund balance at December 31, 1985 to $4,481,183.
ENTERPRISE FUNDS
Purpose
NMI
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 the 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 two year lease at the
other store. In 1984, the City changed its sales philosophy to the wholesale
17
approach so that we could remain competitive with three of the neighboring --
communities which use wholesale pricing. In 1985 , the Municipal Liquor
operation was still feeling the effect of different pressures causing reduced
sales. With many neighboring communities now warehousing liquor, competition _,
is much greater. The DWI laws still are depressing liquor sales along with
the current health trend which is having an impact on liquor consumption.
This has caused us to review our marketing strategies and adopt a more
aggressive approach for the future. We are monitoring the sales of each store
on a periodic basis so we can evaluate the effectiveness of our pricing
policy.
Shown below is a summary of liquor store operations for the years 1985 , 1984,
1983, 1982, and 1981.
1985 1984 1983 1982 1981 ^ '
Sales $2,303,732 $1,645,005 $1,618,204 $1,714,953 $1,743,846
Gross profit 324,535 272,073 314,653 340,059 344,681
Net income (loss)
before transfers (48,139) 15,201 102,385 168,603 192,975
Transfers to --
General Fund $ -0- $ 120,000 $ 150,000 $ 100,000 $ 90,000
Retained earnings of the Liquor Fund were $832 ,999 on December 31, 1985, .,
compared to $879,798 on December 31, 1984.
Public Utility Fund
This fund accounts for the operation and financing of the City-owned sewer and
water systems.
In 1969, the fund assumed a $770,000 liability for bonds payable along with
future interest obligations of the Water No. 75 Improvement Bonds . A total
principal amount of $120,000 for this bond issue was outstanding on December
31, 1985. Although deferred tax levies were set forth in the resolution for
retirement of the bonds and interest, it is the intention of the City to
cancel the tax levies annually for this bond issue and to provide the
necessary revenue from the Public Utility Fund.
The receivable from the Metropolitan Waste Control Commission of $331 ,847
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 credit 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 and
1984. 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, 1985 were $6,663,160 compared to $6 , 192 ,475
on December 31, 1984.
Shown below is a summary of operations of the Public Utility Fund for the
years 1985, 1984, 1983, 1982, and 1981.
18
1985 1984 1983 1982 1981
Operating revenue $2,296,415 $2,401,206 $1,928,973 $1,753,918 $1,560,081
Operating expenses 2,253,164 2,043,653 1,850,966 1,767,818 1,681,670
Operating income
(loss) $ 43,251 $ 357,553 $ 78,007 $ (13,900)$ (121,589)
._. INTERNAL SERVICE FUNDS
Purpose
Internal Service Funds are set up to account for goods and services provided
by designated departments on a cost reimbursement basis to other departments
within a single governmental unit.
Employee Benefits Fund
_ This fund was originally set up to account for all fringe benefits in one
central location. With the use of the new in-house computer system, it is now
possible to allocate costs to the proper departments when incurred. Health
and Life insurance are still charged here and then allocated back to the
benefited departments. Under the old system, it was necessary to charge all
fringe benefits to the Employee Benefits Fund to centralize the costs for
management review. Management now can call for these same costs to be
•• summarized through the use of a simple program. This type of procedure
enhances the City's budgetary control. Amounts accumulated for annual leave
are maintained in this fund. The City has a policy that effectively places a
ceiling on annual leave amounts to keep the dilution of City assets to a
minimum upon employee retirement. During 1985 , operating revenues exceeded
operating expenses by $146,054 resulting in a fund equity at December 31, 1985
of $352,268.
Management Information Services Fund
This fund was created to account for revenues and expenses associated with the
operation of a computerized information system the City has placed into use.
The City determined that an in-house computer was the solution to cost
containment in the information processing area. We have embarked on the
development of a comprehensive management information database that ties all
city activities into one database.
This system has the potential to render valuable information in seconds for
the decisions that must now be made in a dynamic municipal background. All
departments within the functional structure of our City Government are
involved in the development of their related software . The money for the
development of this project came from an advance from the Capital Project
Fund. This advance is to be repaid with interest over a period of five years.
The City is very proud of this decision and hopes to impact the information
- systems many of the cities in Minnesota will be acquiring.
During the year, our city went live with all our financial applications, those
included were Budgetary, General Ledger, Utility Billing, and Payroll. This
was a very smooth transition for us and we are now converting to a new Special
Assessment System.
a
19
Revenues in the form of charges for services during 1985 amount to $163 , 173
and the expenses were $109,147. The fund balance as of December 31, 1985 is
$77,332.
TRUST AND AGENCY FUNDS
Trust and Agency Funds account for assets held by the City as a trustee or --
agent for individuals, private organizations and other governmental units.
The Expendable Trust Fund maintained by the City is for the purpose of holding
escrow deposits relating to industrial development revenue bond and mortgage
issues. The fund balance as of December 31, 1985 is $7,493.
The Agency Fund maintained by the city is for the purpose of collecting taxes —"
received on behalf of an overlapping governmental unit, the Six Cities
Watershed District. The funds are collected and disbursed to the Six Cities
Watershed Management Organization.
GENERAL FIXED ASSETS ACCOUNT GROUP .,
Purpose
General Fixed Assets are those fixed assets of a governmental jurisdiction
which are not accounted for in an Enterprise or Internal Service Fund. To be
classified as a fixed asset in this category, a specific piece of property
must possess three attributes: 1) it must be tangible in nature ; 2) it must
have a life longer than the fiscal year; and 3) it must be of significant
value.
GENERAL LONG TERM DEBT ACCOUNT GROUP
Purpose
General obligation bonds and other forms of long-term debt supported by
general revenues are obligations of a governmental unit as a whole and not its
individual constituent funds . Moreover, the proceeds of such debt may be
spent on facilities which are utilized in the operation of several funds. For
these reasons, the amount of unmatured long-term indebtedness which is backed
by the full faith and credit of the City are accounted for and reported in a
separate self-balancing group of accounts entitled "General Long Term Debt
Account Group" . The group includes (in addition to conventional term debt)
general obligation bonds, time warrants and notes which have a maturity of '^
more than one year from the date of issuance . During the year, the City
issued $4,070,000 in Tax Increment Revenue Bonds that were used to refund the
previously issued General Obligation Tax Increment Bonds . Variable Rate
General Obligation Tax Increment Bonds in the amount of $11,550,000 were also
sold at year-end. During 1985, the City retired $35,000 of principal on the
Civic Center bond issue.
20
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 the George M. Hansen Company P.A. , Certified
Public Accountants is included in this report.
CERTIFICATE OF CONFORMANCE
The Governmental Finance Officers Association of the United States and Canada
(GFOA) awarded a Certificate of Conformance in Financial Reporting to the City
of Fridley, Minnesota, for its comprehensive annual financial report for the
fiscal year ended December 31, 1984.
Om MI
In order to be awarded a Certificate of Conformance, a governmental unit must
publish an easily readable and efficiently organized comprehensive annual
financial report, which contents conform to program standards . Such reports
must satisfy both generally accepted accounting principles and applicable
legal requirements. A Certificate of Conformance is valid for a period of one
year only. We believe our current report continues to conform to Certificate
of Conformance Program requirements , and we are submitting it to GFOA to
determine its eligibility for another certificate.
21
ACKNOWLEDGEMENTS
The preparation of this report on a timely basis could not have been
accomplished without the efficient and dedicated services of the Finance
Department. 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,
-�t,2_ ._�r c✓_ �� k� wctiA._
Richard D. Pribyl Julie M. Burt
Finance Director Assistant Finance Officer
22
Certificate
of
Conformance
in Financial
Reporting
Presented to
City of
Fridley, Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 1984
A Certificate of Conformance in Financial Reporting is
presented by the Government Finance Officers Association
of the United States and Canada to governmental units
and public employee retirement systems whose comprehensive
annual financial reports (CAFR's) are judged to substantially
conform to program standards.
'NCE
T°.uNTEO suns ,
4 i
President uo
coonso
3.A
Z‘det
Executive Director
23
FINANCIAL SECTION
..
a
AUDITOR'S OPINION
GM H C o GEORGE M. HANSEN COMPANY, P.A.
A Professional Corporation of Certified Public Accountants
AUDITORS' OPINION
City Council
Fridley, Minnesota
We have examined the combined financial statements of the City of Fridley,
Minnesota as of and for the year ended December 31 , 1985, as listed in the table
of contents. Our examination was made in accordance with generally accepted
... auditing standards and, accordingly, included such tests of the accounting
records and such other auditing procedures as we considered necessary in the
circumstances.
In our opinion, the combined financial statements referred to above present
fairly the financial position of the City of Fridley, Minnesota at December 31 ,
1985, and the results of its operations and the changes in financial position of
its proprietary fund types for the year then ended, in conformity with generally
accepted accounting principles applied on a basis consistent with that of the
preceding year.
Our examination was made for the purpose of forming an opinion on the combined
financial statements taken as a whole. The combining, individual fund, account
group financial statements and schedules and supplemental information listed in
the table of contents are presented for purposes of additional analysis and are
not a required part of the combined financial statements of the City of Fridley,
Minnesota. The information has been subjected to the auditing procedures applied
in the examination of the combined financial statements, and, in our opinion, is
fairly stated in all material respects in relation to the combined financial
statements taken as a whole. Our examination did not include the statistical
information listed in the table of contents.
. a*'? , ��. A .
June 2, 1986
1433 UTICA AVENUE SOUTH, SUITE 175 MINNEAPOLIS, MINNESOTA 55416 612/546-2566
25
COMBINED FINANCIAL STATEMENTS
The combined statements are intended to provide an overview and broad
perspective of the City's financial position and operations . These
statements present a summary set of information needed to control and
analyze current operations to determine compliance with legal and budgetary
limitations and to assist in financial planning. The following combined
statements are presented:
Combined Balance Sheet - All Fund Types and Account Groups
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 Changes in Financial Position - All
Proprietary Fund Types
CITY OF FRIDLEY, MINNESOTA
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 1985
Governmental Fund Types
Special Debt Capital Special
General Revenue Service Projects Assessment
Assets
Cash $ 976,041 $ 6,623 $ 953 $ 499,400 $
Cash in escrow 11,292,009 3,015,614
Investments 4,748,876 2,860,268 587,003 1,740,332 9,367,454
Receivables:
Accounts 12,189 29,560
Taxes 190,467 8,189 2,648 2,764
Special Assessments 12,241 3,827,174
Interest 395,150 21,680
Due from other funds 87,036 25,000 87,059
Due from other governments 88,542 63,395 175,233
Advance to other funds 50,000
Inventories 19,143
Prepaid expenditure 2,621
Long term receivable
Restricted assets:
Cash
Investments —'
Property and equipment
(Net of depreciation)
Amount available in debt
service fund
Amount to be provided for
retirement of general
long term debt
Total assets $6,445,270 $14,368,760 $590,604 $2,317,496 $16,472,534
(Continued)
See Accompanying Notes to Financial Statements
28
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 1985 1984
$ 157,598 $ 19,836 $ 2,339 $ $ $ 1,662,790 $ 610,702
14,307,623
4,703,250 1,228,483 44,080 25,279,746 21,945,414
619,413 661,162 565,760
1,075 205,143 163,980
3,839,415 4,522,979
416,830 537,369
199,095 172,286
94,800 421,970 594,559
50,000 75,000
365,170 384,313 369,056
2,621 186,906
316,874 316,874 334,662
.� 13,638 13,638 23,806
94,855 94,855 64,243
12,275,948 115,623 24,327,437 36,719,008 35,493,489
588,470 588,470 546,670
15,066,530 15,066,530 2,898,330
$18,641,546 $1,363,942 $47,494 $24,327,437 $15,655,000 $100,230,083 $69,105,211
29
CITY OF FRIDLEY, MINNESOTA
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS (Continued)
December 31, 1985
Governmental Fund Types
Special Debt Capital Special
General Revenue Service Projects Assessment
Liabilities and Fund Equity
Liabilities
Advance from city's
general account $ $ 33,401 $ $ 136,006 $ 1,596,937
Accounts payable 77,532 5,269 24,292 —
Deposits payable 26,551 10,850 131,447
Contracts payable
Salaries payable 98,114 748 492
Leave payable
Deferred revenue 151,247 6,779 2,134 2,109 3,827,174
Due to other funds 113,086 61,009
Due to other governments 7,843
Advance from other fund
Bonds payable 6,350,000
Total liabilities 361,287 170,133 2,134 138,115 11,991,351
Fund Equity
Contributed capital
Investment in general
fixed assets
Retained earnings -
Reserved .,
Unreserved
Fund balance:
Reserved 302,668 12,803,975 588,470 549,400 5,714,572
...
Unreserved
Designated 4,473,872 402,821 1,623,470
Undesignated 1,307,443 991,831 6,511 (1,233,389)
Total retained earnings
and fund balance 6,083,983 14,198,627 588,470 2,179,381 4,481,183
Total fund equity 6,083,983 14,198,627 588,470 2,179,381 4,481,183
Total liabilities and
fund equity $6,445,270 $14,368,760 $590,604 $2,317,496 $16,472,534
See Accompanying Notes to Financial Statements
30
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 1985 1984
$ $ $ $ $ $ 1,766,344 $ 780,778
112,136 16,182 5,199 240,610 431,789
33,721 202,569 166,480
37,718
15,650 115,004 52,642
834,301 834,301 854,137
955 3,990,398 4,655,631
25,000 199,095 172,286
36,416 8,859 126 53,244 34,563
50,000 50,000 75,000
120,000 15,655,000 22,125,000 7,470,000
284,202 934,342 40,001 -0- 15,655,000 29,576,565 14,731,024
10,861,185 10,861,185 10,861,185
24,327,437 24,327,437 22,832,479
429,600 429,600 263,724
7,496,159 7,496,159 7,045,347
19,959,085 5,154,898
6,500,163 6,279,629
7,493 1,079,889 1,936,925
7,496,159 429,600 7,493 -0- -0- 35,464,896 20,680,523
18,357,344 429,600 7,493 24,327,437 -0- 70,653,518 54,374,187
$18,641,546 $1,363,942 $47,494 $24,327,437 $15,655,000 $100,230,083 $69,105,211
31
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, 1985
Governmental Fund Types
Special Debt
General Revenue Service
Revenues:
Taxes and special assessments $2,550,940 $ 401,577 $ 193,569
Licenses and permits 367,224 55,382
Intergovernmental revenue 2,873,270 349,165 6,467
Charges for services 153,483
Fines and forfeits 354,956 --
Interest on investments 444,013 268,211 8,328
Miscellaneous 136,082 87,421
Total revenues 6,879,968 1,161,756 208,364
Expenditures:
Current
General government 949,105 35,986
Public safety 2,270,691
Civic center 162,220
Public works 1,929,934 282,472 _.
Recreation and naturalist 535,801
Capital projects
Debt service 354,029
Capital outlay 332,703 5,501,456
Total expenditures 6,180,454 5,819,914 354,029
Excess (deficiency) of revenues --
over expenditures 699,514 (4,658,158) (145,665)
Other financing sources (uses) :
Bond proceeds 17,407,887
Operating transfers in 375,515 187,465
Operating transfers out (383,869) (562,980)
Total other financing sources (uses) (8,354) 16,844,907 187,465
Excess (deficiency) of revenues .,
and other financing sources over
expenditures and other financing
uses 691,160 12,186,749 41,800
Fund balance January 1 5,392,823 2,011,878 546,670
Fund balance December 31 $6,083,983 $14,198,627 $ 588,470 ,^
See Accompanying Notes to Financial Statements
32
Exhibit A-2
Fiduciary
Fund Type Totals
Capital Special Trust and (Memorandum Only)
Projects Assessments Agency 1985 1984
$ 36,489 $1,087,362 $ $ 4,269,937 $ 4,069,579
422,606 411,054
8,270 165,531 3,402,703 3,570,422
153,483 145,394
354,956 178,320
160,640 869,211 1,486 1,751,889 1,718,756
50,000 127,713 401,216 354,135
255,399 2,249,817 1,486 10,756,790 10,447,660
-„ 985,091 850,963
2,270,691 2,201,155
162,220 149,332
2,212,406 2,054,223
535,801 442,917
600 1,202,588 1,203,188 1,572,747
414,518 768,547 835,729
_ 5,834,159 687,791
600 1,617,106 -0- 13,972,103 8,794,857
254,799 632,711 1,486 (3,215,313) 1,652,803
17,407,887
282,195 90,423 748,133 1,608,276
(13,638) (773,022) (1,499,025)
282,195 76,785 -0- 17,382,998 109,251
536,994 709,496 1,486 14,167,685 1,762,054
1,642,387 3,771,687 6,007 13,371,452 11,609,398
$2,179,381 $4,481,183 $7,493 $27,539,137 $13,371,452
33
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, 1985
General Fund
Variance
Favorable
Budget Actual (Unfavorable)
Revenues:
Taxes and special assessments $ 2,495,148 $2,550,940 $ 55,792
Licenses and permits 241,628 367,224 125,596
Intergovernmental revenue 2,853,238 2,873,270 20,032 -'
Charges for services 121,402 153,483 32,081
Fines and forfeits 150,000 354,956 204,956
Interest on investments 260,000 444,013 184,013
Miscellaneous 42,500 136,082 93,582
Total revenues 6,163,916 6,879,968 716,052
Expenditures:
Current
General government 989,654 949,105 40,549
Public safety 2,370,150 2,270,691 99,459
Civic center 181,216 162,220 18,996
Public works 2,131,089 1,929,934 201,155
Recreation and naturalist 569,658 535,801 33,857 ^
Reserve for contingency 281,239 281,239
Capital outlay 506,894 332,703 174,191
Total expenditures 7,029,900 6,180,454 849,446
Excess (deficiency) of revenues
over expenditures (865,984) 699,514 1,565,498
Other financing sources (uses) :
Bond proceeds
Operating transfers in 422,652 375,515 (47,137) .,
Operating transfers out (383,869) (383,869)
Total other financing sources (uses) 38,783 (8,354) (47,137)
Excess (deficiency) of revenues
and other financing sources over
expenditures and other financing
uses (827,201) 691,160 1,518,361
Fund balance January 1 5,392,823 5,392,823
Fund balance December 31 $ 4,565,622 $6,083,983 $1,518,361
See Accompanying Notes to Financial Statements
34
Exhibit A-3
Totals
Special Revenue Fund Types (Memorandum Only)
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
$ 401,000 $ 401,577 $ 577 $ 2,896,148 $ 2,952,517 $ 56,369
51,490 55,382 3,892 293,118 422,606 129,488
- 545,023 349,165 (195,858) 3,398,261 3,222,435 (175,826)
121,402 153,483 32,081
150,000 354,956 204,956
248,060 268,211 20,151 508,060 712,224 204,164
85,475 87,421 1,946 127,975 223,503 95,528
1,331,048 1,161,756 (169,292) 7,494,964 8,041,724 546,760
52,464 35,986 16,478 1,042,118 985,091 57,027
2,370,150 2,270,691 99,459
181,216 162,220 18,996
288,550 282,472 6,078 2,419,639 2,212,406 207,233
569,658 535,801 33,857
281,239 281,239
5,751,836 5,501,456 250,380 6,258,730 5,834,159 424,571
6,092,850 5,819,914 272,936 13,122,750 12,000,368 1,122,382
(4,761,802) (4,658,158) 103,644 (5,627,786) (3,958,644) 1,669,142
17,000,000 17,407,887 407,887 17,000,000 17,407,887 407,887
422,652 375,515 (47,137)
(835,473) (562,980) 272,493 (1,219,342) (946,849) 272,493
16,164,527 16,844,907 680,380 16,203,310 16,836,553 633,243
11,402,725 12,186,749 784,024 10,575,524 12,877,909 2,302,385
2,011,878 2,011,878 7,404,701 7,404,701
$13,414,603 $14,198,627 $784,024 $17,980,225 $20,282,610 $2,302,385
35
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, 1985
Proprietary Fund Types
Totals
Internal (Memorandum Only) ,^
Enterprise Service 1985 1984
Sales and cost of sales:
Sales $2,303,732 $ $2,303,732 $1,645,005 -'
Cost of sales 1,979,197 1,979,197 1,372,932
Gross profit 324,535 -0- 324,535 272,073
Operating revenues:
Water sales and sewer rents 2,078,176 2,078,176 2,060,966
Other 218,239 218,239 340,240 -
Charges for services 349,174 349,174 993,377
Total operating revenues 2,296,415 349,174 2,645,589 3,394,583
Operating expenses:
Personal services 692,295 692,295 671,431
Supplies and other charges 1,640,740 237,969 1,878,709 2,221,583
Depreciation 326,060 34,416 360,476 329,809
Total operating expenses 2,659,095 272,385 2,931,480 3,222,823
Operating income (38,145) 76,789 38,644 443,833
Non-operating revenues (expenses) :
Intergovernmental revenue 2,250
Interest on investments 459,648 103,455 563,103 531,902
Debt service (5,152) (7,000) (12,152) (15,657)
Other 2,482 (278) 2,204 7,786 -
Total non-operating revenues 456,978 96,177 553,155 526,281
Income before operating transfers 418,833 172,966 591,799 970,114
Operating transfers in 14,978 21,176 36,154 23,806
Operating transfers out (9,925) (1,340) (11,265) (133,057)
Total operating transfers 5,053 19,836 24,889 (109,251)
Net income 423,886 192,802 616,688 860,863
Retained earnings January 1
as previously reported 7,072,273 236,798 7,309,071 7,265,585 -
Adjustment: See note 14 -0- -0- -0- (817,377)
Retained earnings January 1 as restated 7,072,273 236,798 7,309,071 6,448,208
Retained earnings December 31 $7,496,159 $429,600 $7,925,759 $7,309,071
See Accompanying Notes to Financial Statements -
36
Exhibit A-5
CITY OF FRIDLEY, MINNESOTA
.- COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION -
ALL PROPRIETARY FUND TYPES
Year Ended December 31, 1985
Prorietary Fund Types Totals
Internal (Memorandum Only)
Enterprise Service 1985 1984
Sources of working capital:
Operations:
Net income for the year $ 423,886 $192,802 $ 616,688 $ 860,863
Items not requiring working
-' capital-depreciation 326,060 34,416 360,476 329,809
Working capital provided by operations 749,946 227,218 977,164 1,190,672
Contributions from property owners 694,505
Decrease in long term receivable 17,788 17,788 16,904
Net decrease in restricted assets 75,605
Total sources of working capital 767,734 227,218 994,952 1,977,686
Uses of working capital:
.- Net increase in restricted assets 20,444 20,444
Acquisition of property and equipment 67,703 23,335 91,038 918,814
Decrease in long term bonds payable 50,000 50,000 50,000
Decrease in long term advance from
Capital Improvement Fund 25,000 25,000 25,000
Total uses of working capital 138,147 48,335 186,482 993,814
Increase in working capital $ 629,587 $178,883 $ 808,470 $ 983,872
- Elements of increase (decrease)
in working capital:
Cash $ (74,375) $(35,060) $(109,435)$ (302,784)
Investments 593,772 173,849 767,621 1,173,533
Accounts receivable 142,491 142,491 (61,662)
Due from other governments (63,095) (63,095) 86,026
Inventories 11,475 11,475 158,406)
- Prepaid expenses (124,810) (124,810) 51,409
Accounts payable 155,105 21,388 176,493 (147,097)
Contracts payable 10,744 10,744 (10,744)
Salaries payable (6,251) (6,251) (1,018)
Leave payable 19,836 19,836 53,298
Due to other governments (15,469) (1,130) (16,599) (15,495)
_.. Increase in working capital $ 629,587 $178,883 $ 808,470 $ 983,872
"' See Accompanying Notes to Financial Statements
37
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS --
DECEMBER 31, 1985
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. 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 nine generic fund types and three broad
categories as follows:
GOVERNMENTAL FUNDS
Governmental funds include the general fund, special revenue funds , debt
service funds, capital projects funds and special assessment 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) .
Those 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.
38
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
1. Summary of Significant Accounting Policies (Continued)
A. Fund Accounting (Continued)
Capital Projects Funds - Capital Projects Funds are used for the acquisition or
construction of major capital facilities other than those financed by
-. proprietary funds or special assessment funds.
Special Assessment Funds - Special Assessment Funds are used to account for the
financing of public improvements or services deemed to benefit the properties
against which special assessments are levied.
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.
FIDUCIARY FUNDS
Fiduciary funds include expendable trust funds and agency funds . The
measurement focus of these funds is the same as governmental funds and are
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 Fund - The Agency Fund is a clearing type fund for the collection of
taxes on behalf of an overlapping governmental unit, Six Cities Watershed
District. The fund is custodial in nature (assets equal liabilities) and does
not involve measurement of results of operation.
39
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
1. Summary of Significant Accounting Policies (Continued)
B. 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 "financial flow" measurement focus. This .�
means that only current assets and current liabilities are generally
included on their 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 single exception to the general rule is for special
assessment bonds, which are accounted for in Special Assessment 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.
Because of their spending measurement focus , expenditure recognition for
governmental fund types excludes amounts represented by noncurrent .,
liabilities, except special assessment bonds. 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.
40
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
- 1. Summary of Significant Accounting Policies (Continued)
C. 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.
D. Budgets and Budgetary Accounting
The City follows these procedures in establishing the budgetary data
reflected in the financial statements:
_ 1. The City Manager submits to the City Council a proposed operating budget
for the fiscal year commencing the following January 1. The operating
budget includes expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a re..olution.
4. The City Council may authorize transfer of budgeted amounts between
departments within any fund.
5. Supplemental appropriations may be made during the year by the City
Council. These amounts must be financed by funds from the contingency
reserve set up in the General Fund or by additional revenues.
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.
41
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
1. Summary of Significant Accounting Policies (Continued)
D. Budgets and Budgetary Accounting (Continued)
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 and Special
Assessment 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. Budgetary control is maintained at the expenditure category level within
each division. Budgetary control, by departments or divisions , and by
category is required by the City Charter.
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.
E. Assets, Liabilities and Fund Equity
1) Cash and Investments —'
Cash balances from all funds are combined and invested to the extent
available in certificates of deposit, U. S. government securities and �...
other securities authorized by State Statute. Earnings from such
investments are allocated to the respective funds on the basis of
applicable cash balance participation by each fund. Investments are
stated at cost which approximates market.
The City provides temporary advances to funds that have insufficient
cash balances by means of an advance from the general account. This is
classified as a liability of the fund until adequate resources are
received.
2) Cash in Escrow
Cash in escrow represents the net proceeds after issuance costs , from
the sale of two bond issues; 1) 11,550,000 Variable Rate Demand General
Obligation Tax Increment Bonds, Series 1985 and 2) 3 , 100 ,000 Variable
Rate Demand General Obligation Improvement Bonds , Series 1985 . The
proceeds are being held in escrow by Manufacturers Hanover Corporation ...,
under an investment agreement until a permanent bond rating can be
issued by Standard and Poors Corporation.
42
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
1. Summary of Significant Accounting Policies (Continued)
_ E. Assets, Liabilities and Fund Equity (Continued)
3) Receivables
Property Taxes
Property tax levies are set by the City Council in October each year and
are certified to the County for collection the following year. In
Minnesota, counties act as collection agents for all property taxes.
The County spreads the levies over all taxable property in the City.
Such taxes become receivables of the City as of January 1.
Property taxes are payable in equal installments by property owners to
the County as follows:
Personal property - February 28 and June 30
.� Real property - May 15 and October 15
The County remits the collections to the City and other taxing districts
four times a year, on or before February 21, April 19, July 5 and
'-' December 4.
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 law which allows an
increase in the tax levy each year equal to the Implicit Price Deflator
increase or 5%, whichever is greater, further indexed by the percentage
increase in households or population, whichever is greater. Levies for
bonded indebtedness are not limited by the law.
— Taxes payable on homestead property (as defined by State Statutes) are
partially reduced by a homestead credit. This credit is paid to the
City by the State in lieu of taxes levied against homestead property.
The State remits this credit in six equal installments in July through
— December each year.
43
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) '-
DECEMBER 31, 1985
1. Summary of Significant Accounting Policies (Continued)
E. Assets, Liabilities and Fund Equity (Continued) .■
3) Receivables (Continued)
Special Assessments Receivable
Special assessments are levied against the benefited properties for the
assessable costs of special assessment improvement projects in
accordance with State Statutes. The City usually adopts the assessment
rolls when the individual projects are complete or substantially
complete. The assessments are collectible over a term of years _
generally consistent with the term of years of the related bond issue.
Collection of annual installments (including interest) is handled by the
County in the same manner as property taxes. Property owners are --
allowed to prepay total future installments without interest or
prepayment penalties.
Special assessments receivable includes the following components:
Unremitted - amounts collected by Anoka County and not
remitted to the City.
Delinquent - amounts billed to property owners but not paid.
Deferred - assessment installments which will be billed to
property owners in future years.
4) Inventories
Inventories are stated at the lower of F.I.F.O. cost or market based on
perpetual inventory systems. ^'
Inventory in the General Fund consists of expendable supplies held for
consumption. The cost is recorded as an expenditure at the time
individual inventory items are purchased. 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) . .,
44
CITY OF FRIDLEY, MINNESOTA
-- NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
1. Summary of Significant Accounting Policies (Continued)
_.. E. Assets, Liabilities and Fund Equity (Continued)
5) 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 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:
Land Improvements 20 - 50 years
Buildings 20 - 50 years
Office Equipment 5 - 10 years
Machinery and Equipment 5 - 10 years
Other Improvements 20 years
6) Annual Leave
The personnel ordinance limits the annual accumulation of benefits that
can be accumulated from year to year. The Employee Benefits Internal
Service Fund reflects the City's accrued liabilities for annual leave
and other benefits for all City employees. That liability is stated in
the Employee Benefits Fund and represents the maximum possible dilution
of fund assets by retirements or extended approved leaves by employees.
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.
WPM
45
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
1. Summary of Significant Accounting Policies (Continued)
F. 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 as they are not available to finance current
expenditures. General property taxes and special assessments are recognized
when cash is received to prevent overstating due to delinquencies.
Principal Portion of Special Assessments - Revenue is recognized in the year
the assessments are collected.
Interest Revenue on Special Assessments Receivable - Interest revenue is
recognized in the year of collection of the current principal installment.
Intergovernmental Revenues - Intergovernmental revenues in the form of state
aids are recorded as revenue annually when allocations are made by statutory
formula. Entitlements for General Revenue Sharing are recorded as revenue
for the period of the allocation. Other intergovernmental revenues received
as reimbursements for specific purposes or projects are recognized based
upon the expenditures recorded. Intergovernmental revenues received through
abatements or shares are recorded in the year determined to be measurable .�
and available such as in the State Aid Fund.
Interest on Investments - Interest is recorded as revenue in the year
earned.
Water and Sewer Service Charges - Revenue is recognized when earned with no
allowance for uncollectibles as delinquent accounts are certified as a --
special assessment lien against the property billed. Unbilled service
charges are included in receivables at year-end.
Other Revenues - Licenses, fines, penalties and miscellaneous revenues are
recorded as revenues when received in cash because they are generally not
measurable until actually received.
Interest Expense on Bonded Indebtedness - Interest expense is recorded as an
expenditure when paid in the governmental fund types and accrued when
incurred in the proprietary fund types. .,
Bond and Interest Payments Due January 1 - Expenditures are recognized when
amounts are remitted to the paying agent (usually in December) for payment
of bonds and interest.
46
CITY OF FRIDLEY, MINNESOTA
_ NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
1. Summary of Significant Accounting Policies (Continued)
G. 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.
H. Total Columns on Combined Statements
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 1984 amounts have been
reclassified to conform to the 1985 presentation.
2. 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.
Based on the foregoing criteria the financial statement of the following
- organization has been incorporated in the accompanying financial statement:
Fridley Housing and Redevelopment Authority - The City Council appoints the
chairperson and the Commission members of the Housing and Redevelopment
Authority. A majority of the funding is provided by the issuance of general
obligation tax increment bonds issued by the City. The operations of the
Fridley Housing and Redevelopment Authority are reported in a separate
Special Revenue Fund.
47
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
2. Principles used in the determination of the scope of the Governmental entity
(Continued)
The following entities are not part of the City of Fridley and are excluded --
from the accompanying financial statements:
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. _-
Police and Fire 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. 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.
3. Special Assessments Receivable
Special assessments receivable at December 31, 1985 are as follows:
Special
General Assessments Total
Deferred $ 5,954 $3,489,207 $3,495,161
Delinquent 6,287 337,967 344,254
Total $12,241 $3,827,174 $3,839,415 --
48
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
4. Due From Other Governments
Amounts due from other governments at December 31, 1985 are as follows:
General Fund:
State of Minnesota
a) Section 8 Housing $ 7,858
b) Civil Defense 306
c) DWI Grant 7,086
Anoka County
a) Fines and Forfeits 27,499
b) Community Development Block Grant 26,857
c) Gas Reimbursement 226
d) Recycling 3,395
e) Civil Defense 8,552
.... Metro Council, Recycling Program 5,377
City of Hilltop, Fire Protection Service 1,350
City of St. Petersburg, Refund 36
... $ 88,542
Special Revenue Funds:
State of Minnesota, Construction
Money Expended in 1984 and 1985 $ 13,679
Federal Government, Revenue Sharing 49,716
— $ 63,395
Special Assessment Funds:
State of Minnesota, Water Reclamation
Money Expended in 1984 and 1985 $175,233
Enterprise Funds - Utility Fund:
.� Metropolitan Waste Control Commission (MWCC)
Refund of overpayment $ 79,827
Current portion of amounts due from MWCC 14,973
Total current portion 94,800
— Non-current portion - long-term receivable of
amounts due from MWCC 316,874
MM
MEI
49
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
4. Due From Other Governments (Continued)
The non-current receivable in the Utility Enterprise Fund represents:
1. The balance for the sale of the City's sewer interceptors is $284, 827 (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 $32,047, 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, 1985 Additions Deletions Dec 31, 1985
Land $ 1,632,207 $ 46,165 $ $ 1,678,372
Buildings 1,766,372 6,686 1,773,058
Improvements other than .,
buildings 16,236,688 49,902 16,286,590
Machinery and equipment 2,064,165 262,146 46,660 2,279,651
Construction in progress 1,133,047 1,176,719 2,309,766
Total $22,832,479 $1,541,618 $ 46,660 $24,327,437
50
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
6. Summary of Proprietary Fund Property and Equipment
A summary of proprietary fund type property, plant and equipment at December 31,
–. 1985 follows:
Enterprise
Internal
Liquor Utility Total Service
Land $ 66,961 $ 154,881 $ 221,842 $
— Buildings 174,116 824,078 998,194
Improvements other than
buildings 13,656 233,827 247,483
Machinery and equipment 217,821 2,089,884 2,307,705 178,802
Water and sewer lines 10,861,185 10,861,185
472,554 14,163,855 14,636,409 178,802
Less:
Accumulated depreciation (134,824) (2,225,637) (2,360,461) (63,179)
Net property and
equipment $337,730 $11,938,218 $12,275,948 $115,623
7. Long-Term Debt
The following is a summary of long-term debt transactions of the City for
the year ended December 31, 1985:
Special General
Assessment Enterprise Long-Term
Funds Funds Debt Total
Bonds payable
at January 1, 1985 $3,855,000 $170,000 $ 3,445,000 $ 7,470,000
Bonds issued 3,100,000 15,620,000 18,720,000
Bonds retired (605,000) (50,000) (3,410,000) (4,065,000)
— Bonds payable
at December 31, 1985 $6,350,000 $120,000 $15,655,000 $22,125,000
51
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
7. Long-Term Debt (Continued) --
Bonds payable at December 31, 1985 are comprised of the following individual
issues (in thousands of dollars) : ,_
Special Assessment Funds:
$715,000 Improvement Bonds of 1965 due on the final maturity
date, February 1, 1986; interest at 3.50% $ 20
$1 , 830,000 Improvement Bonds of 1967 due in varying annual
installments of $20,000 - $30,000 through Janaury 1, 1988 ; --
interest at 4.20% - 4.50% 50
$1 , 220,000 Refunding Bonds of 1975 due in varying annual ,^
installments of $10,000 - $45,000 through January 1, 1989 ;
interest at 6.00% 100
$2,135,000 G.O. Special Assessment Bonds of 1972 due in varying
annual installments of $50,000 - $75 , 000 through January 1,
1994; interest at 3.80% - 5.30% 450
$1 ,550 ,000 Special Assessment Bonds of 1976 due in varying
annual installments of $25 ,000 through February 1 , 1990 ;
interest at 3.75% - 6.00% 125
$1 ,115 ,000 Special Assessment Bonds of 1977 due in varying
annual installments of $50,000 - $115 ,000 through February 1,
1989; interest at 3.10% - 4.90% 325
$1 ,755 ,000 Special Assessment Bonds of 1980 due in varying
annual installments of $25,000 - $155 ,000 through February 1, .,
2001; interest at 7.25% - 8.50% 1,150
$1 ,425 ,000 Special Assessment Bonds of 1982 due in varying
annual installments of $15,000 - $175 ,000 through February 1,
1999; interest at 8.50% - 10.70% 1,030
$3,100,000 Variable Rate Demand Improvement Bonds of 1985 3,100 .,
$6,350
Enterprise Fund:
$780,000 General Obligation (G.0. ) Water Revenue Bonds of 1965
due in annual installments of $50,000 through February 1 , 1987
and $20, 000 on the final maturity date , February 1 , 1988 ;
interest at 3.20% - 3.50% $ 120
52
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
'— DECEMBER 31, 1985
—. 7. Long-Term Debt (Continued)
General Long-Term Debt:
$500,000 Civic Center Bonds of 1965 due in annual installments
of $35,000 through February 1, 1986; interest at 3.50% 35
$4,070,000 Tax Increment Revenue Bonds of 1985 due in varying
annual installments of $180,000-460 ,000 through February 1,
1999; interest at 5.50%- 9.00% 4,070
_. $11,550,000 Variable Rate Demand Tax Increment Bonds of 1985 11,550
$15,655
The annual requirements to amortize all debt outstanding as of December 31,
1985, including interest payments of $3,818,274, are as follows:
Annual Requirements to Amortize Long-Term Debt
December 31, 1985
Special
Year Ending Assessment Enterprise Civic Center Redevelopment
December 31 Fund Fund Bonds Fund Total
1986 800,864 53,325 35,612 492,040 1,381,841
1987 1,204,467 51,575 491,390 1,747,432
1988 1,015,205 20,350 2,199,284 3,234,839
1989 962,438 940,621 1,903,059
1990 848,167 900,315 1,748,482
1991 - 1995 2,516,396 5,806,483 8,322,879
1996 - 2000 891,217 7,536,350 8,427,567
2001 26,050 26,050
$8,264,804 $125,250 $35,612 $18,366,483 $26,792,149
The preceding debt service requirements do not include interest on the Tax
Increment or Improvement Bonds of December 30, 1985 , as the bonds have a
variable interest rate.
$588,470 is available in the Debt Service Fund to service the General Obligation
Bonds.
The Tax Increment Revenue Bonds are payable solely from increment revenue that
is generated from the related increment district.
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.
53
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
7. Long-Term Debt (Continued)
Legal Debt Margin - Under applicable State Statutes , the legal debt margin is
7.33% of the most recent assessed valuation less certain deductions . At
December 31, 1985, the legal debt margin was $15,852,264.
8. Retirement Plans
The City is involved with four pension plans, and other agencies are responsible
for the administration of each plan. The City is making all pension —
contributions as required by law.
Fridley Police Relief Association and Fridley Fire Relief Association - These
Associations are independent entities that administer pension plans for 16 and
31 members respectively. The City levies taxes for pension contributions to the
Associations in accordance with State Statutes. The pension levies satisfy the
Police Relief Association Guidelines Act, which requires that contributions —
cover normal cost, interest at five (5%) percent on the unfunded liability, and
an amount for amortization of any unfunded pension liability by the year 2010.
The pension levy for the year ended December 31, 1985 for the Police Association _
was $124,303. There is no levy requirement for the Fire Association at this
time.
State law requires an actuarial study every two years . Based on the latest
actuarial study for the Police Relief Association as of December 31, 1985 , the
actuarial liability exceeded pension fund assets by approximately $1,689 ,444.
The latest study for the Firemen's Relief Association as of January 1 , 1983
stated that there was an excess of accrued liabilities over pension fund assets
of $160,769.
Public Employee Retirement Association - All permanent City employees are
covered by the Public Employee Retirement Association (PERA) which is a
state-wide plan and is administered by an independent agency of the State of
Minnesota. The City's contribution ranges from 4.25% to 12.0% of its employees' --
wages, and the rate is determined by the particular plan the employee belongs
to. The cost of PERA for 1985 was $220,823. State law provides that the City
contribute an amount that will fund the current year costs as they accrue and to
fund the amortization of prior service costs with full funding required by the
year 2010. According to the PERA annual report, the unfunded accrued liability
was $628,687,639 as of July 1, 1984. The amount of unfunded prior service cost
for each governmental unit served by PERA is not available. —
Federal Insurance Contribution Act (Social Security) - Approximately sixty (60%)
percent of the permanent City employees are covered by Social Security. The
1985 contribution rate was 7 . 05% on $39 , 600 in wages . The cost of Social
Security for 1985 was $111,920.
54
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
9. Interfund Receivables and Payables
Interfund receivables and payables at December 31, 1985 are as follows:
Interfund Interfund
Receivables Payables
Due From/Due To:
Special Revenue Funds -
- Home Ownership Fund $ 26,027 $
HRA Fund 61,009 113,086
Capital Projects Fund -
Capital Improvement Fund 25,000
Special Assessment Fund 87,059 61,009
Internal Service Fund -
Management Information Services Fund 25,000
$199,095 $199,095
Advance From/Advance To:
Capital Projects Fund -
Capital Improvement Fund $ 50,000
Internal Service Fund -
Management Information Services Fund $ 50,000
NMI
W M
MM
W M
MM
MM
55
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
10. Reserved Fund Balances/Retained Earnings
The following reservations have been made of various fund balances/retained
earnings at December 31, 1985: '-
Fund Balance
General Fund —
Reserved for:
Encumbrances $ 175,645
Park construction 107,880
Inventory 19,143
302,668
Special Revenue Fund
Reserved for:
Construction 8,758,372,
Debt Service 4,045,603
12,803,975
Debt Service Fund
Reserved for Debt Service 588,470
Capital Projects Fund
Reserved for:
Advance to other funds 50,000
Construction 499,400 —
549,400
Special Assessment Fund
Reserved for:
Encumbrances 562,249
Debt Service 5,152,323 —
5,714,572
Total reservations $19,959,085 —
Retained Earnings
Internal Service Fund
Reserved for employee benefits $ 352,268
Management Information Services Fund
Reserved for capital outlay 77,332
Total reservations $ 429,600
No reservations have been made in the Enterprise Funds for restricted assets, as
there is not an excess of restricted assets over the related liabilities.
56
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
11. Designated Fund Balance
The following designations have been made of various fund balances at December
..., 31, 1985:
General Fund
Working Capital $3,000,000
'—' Subsequent Year's Expenditures 473,872
Replacement of Fixed Assets 1,000,000
4,473,872
Special Revenue
Municipal state Aid Fund
Subsequent Year's Expenditures 402,821
Capital Projects
Capital Improvement Fund -
Replacement of Fixed Assets 1,510,271
Park Improvement 63,199
Sears Fund -
Park Improvement 50,000
1,623,470
Total $6,500,163
57
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
12. Segment Information for Enterprise Funds
The City maintains operating funds for Liquor and Utility (Water and Sewer
Operations) . Segment information for the year ended December 31 , 1985 is as
follows:
Total
Enterprise
Liquor Utility Funds
Sales (less cost of --
sales of $1,979,197) $ 324,535 $ -0- $ 324,535
Operating revenues -0- 2,296,415 2,296,415
Operating expenses (405,931) (2,253,164) (2,659,095) ,_
Operating income (loss) (81,396) 43,251 (38,145)
Non-operating revenues
(expenses) - net 33,257 423,721 456,978
Income (loss) before operating —
transfers (48,139) 466,972 418,833
Operating transfers from other
funds 1,340 13,638 14,978
Operating transfers to other funds (9,925) (9,925)
Net income (loss) $ (46,799) $ 470,685 $ 423,886
Depreciation expense included -
in operating expenses 25,122 300,938 326,060
Property and equipment
Additions 46,981 20,722 67,703
Deletions -0- (6,266) (6,266)
Working capital 495,269 5,230,760 5,726,029
Bonds and other long-term —.
liabilities payable from
operating revenues -0- 120,000 120,000
Total assets 970,314 17,671,232 18,641,546 —"
Fund equity
Contributed 10,861,185 10,861,185 --
Retained earnings $ 832,999 $ 6,663,160 $ 7,496,159
58
CITY OF FRIDLEY, MINNESOTA
_ NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1985
13. Litigation
The City had the usual and customary type of miscellaneous claims pending at
year-end, mostly of a minor nature and usually all covered by insurance carried
for that purpose . At the present time , there is no significant litigation
pending not covered by the City's insurance.
14. Prior Period Adjustment
The Employee Benefit Fund within the Internal Service Funds reflects an
accounting change that restates the liability that exists for the employees
leave payable as of December 31, 1984. With the change in the City's accounting
system this change was required.
15. Leases
•••• The City leases the property at 214 Mississippi from the Fridley Housing and
Redevelopment Authority for a warehouse liquor store. The lease is for 3 years
terminating in December of 1987. Rental expense is $21,250 annually.
59
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
(Iti‘6:7 CITY OF FRIDLEY, MINNESOTA
GENERAL FUND
-. (12\ COMPARATIVE BALANCE SHEET
December 31, 1985 and 1984
-. /P-- iS
1985 1984
Assets
Cash $ 976,041 $
Investments 4,748,876 5,410,599
-- Receivables:
Accounts 12,189 14,240
Taxes
.... Unremitted 51,461 28,933
Delinquent 139,006 125,533
Special Assessments
,.. Deferred 5,954 9,406
Delinquent 6,287 7,945
Interest 395,150 528,685
Due from other governments 88,542 121,589
Inventories 19,143 15,361
Prepaid expenditures 2,621
Total assets $6,445,270 $6,262,291
-- Liabilities and Fund Balance
Liabilities:
Advance from city's general account $ $ 594,071
Accounts payable 77,532 58,865
Deposits payable 26,551 25,001
Salaries payable 98,114 42,760
... Deferred revenue 151,247 142,884
Due to other governments 7,843 5,887
Total liabilities 361,287 869,468
Fund balance:
Reserve for encumbrances 175,645 182,204
"' Reserve for park construction 107,880 86,467
Reserve for inventory 19,143 15,361
Unreserved -
Designated for working capital 3,000,000 3,000,000
Designated for subsequent year's expenditures 473,872 312,426
Designated for replacement of fixed assets 1,000,000 1,000,000
Undesignated 1,307,443 796 365
Total fund balance 6,083,983 5,392,823
'- Total liabilities and fund balance $6,445,270 $6,262,291
61
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, 1985
With Comparative Actual Amounts for Year Ended December 31, 1984
1985
Variance-
Favorable 1984
Budget Actual (Unfavorable) Actual --
Revenues:
Taxes and special assessments $2,495,148 $2,550,940 $ 55,792 $2,516,884 _
Licenses and permits 241,628 367,224 125,596 359,605
Intergovernmental revenue 2,853,238 2,873,270 20,032 2,795,766
Charges for services 121,402 153,483 32,081 145,394
Fines and forfeits 150,000 354,956 204,956 178,320 -"
Interest on investments 260,000 444,013 184,013 397,975
Miscellaneous 42,500 136,082 93,582 98,691
Total revenues 6,163,916 6,879,968''' 716,052 6,492,635 -
Expenditures:
Current -_
General government 989,654 949,105 40,549 806,399
Public safety 2,370,150 2,270,691 99,459 2,201,155
Civic center 181,216 162,220 18,996 149,332
Public works 2,131,089 1,929,934 201,155 1,887,379 -"
Recreation and naturalist 569,658 535,801 33,857 442,917
Reserve for contingencies 281,239 281,239
Capital outlay 506,894 332,703 174,191 491,518 -
Total expenditures 7,029,900 6,180,454 849,446 5,978,700
Excess (deficiency) of revenues .,
over expenditures (865,984) 699,514 1,565,498 513,935
Other financing sources (uses) : .,
Operating transfers in 422,652 375,515 (47,137) 460,152
Operating transfers out (383,869) (383,869) (311,883)
Total other financing sources -
(uses) 38,783 (8,354) (47,137) 148,269
Excess (deficiency) of revenues ._
and other financing sources
over expenditures and other
financing uses (827,201) 691,160 1,518,361 662,204
Fund balance January 1 5,392,823 5,392,823 4,730,619
Fund balance December 31 $4,565,622 $6,083,983 $1,518,361 $5,392,823 --
62
Exhibit B-3
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL
Year Ended December 31, 1985
With Comparative Actual Amounts for Year Ended December 31, 1984
1985
Variance-
Favorable 1984
Budget Actual (Unfavorable) Actual
Taxes and special assessments:
" Current ad valorem taxes $2,455,978 $2,427,146 $(28,832) $2,430,609
Delinquent ad valorem taxes 30,870 72,582 41,712 42,629
Penalties and interest 4,000 41,615 37,615 32,658
.-. Forfeited sale-taxes 1,000 3,232 2,232 2,657
Special assessments 3,300 6,365 3,065 8,331
Total taxes 2,495,148 2,550,940 55,792 2,516,884
Licenses and permits
Licenses -
Contractor 12,650 14,656 2,006 12,807
Business 98,254 91,269 (6,985) 130,990
All other 30,724 49,867 19,143 6,167
Permits 100,000 211,432 111,432 209,641
Total licenses and permits 241,628 367,224 125,596 359,605
Intergovernmental revenue:
Civil defense 16,000 9,687 (6,313) 11,628
Other federal grants 191,526 176,526 (15,000) 286,684
State maintenance aid 60,000 31,335 (28,665) 90,556
Homestead credit 566,836 566,836 539,933
-- Local government aid 1,801,199 1,800,000 (1,199) 1,699,244
Other state grants 71,388 125,044 53,656 25,901
Police and fire pension 131,000 148,553 17,553 141,820
,.., Local grants 15,289 15,289
Total intergovernmental revenue 2,853,238 2,873,270 20,032 2,795,766
Charges for services:
General government 10,000 17,803 7,803 31,477
Public safety 18,801 20,979 2,178 4,112
Conservation of health 8,600 4,758 (3,842)
Recreation 84,001 109,943 25,942 109,805
Total charges for services 121,402 153,483 32,081 145,394
Fine and forfeits 150,000 354,956 204,956 178,320
Interest on investments 260,000 444,013 184,013 397,975
(Continued)
63
Exhibit B-3
Continued
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL
Year Ended December 31, 1985
With Comparative Actual Amounts for Year Ended December 31, 1984 _
1985
Variance- -'
Favorable 1984
Budget Actual (Unfavorable) Actual
Miscellaneous revenue:
Rent income $ $ 11,925 $ 11,925 $ 1,957
Sale of property 18,000 63,172 45,172 52,201 _
Donations 14,000 48,865 34,865 24,366
Miscellaneous refunds 10,500 12,120 1,620 20,167
Total miscellaneous revenue 42,500 136,082 93,582 98,691
Total revenue 6,163,916 6,879,968 716,052 6,492,635
Other financing sources:
Operating transfers in -
Municipal State Aid Fund 140,000 142,863 2,863 140,000
Revenue Sharing Fund 232,652 232,652 187,000 ._
Cable TV Fund 13,152
Liquor Fund 50,000 (50,000) 120,000
Total other financing sources 422,652 375,515 (47,137) 460,152 _
Total revenues and other
financing sources $6,586,568 $7,255,483 $668,915 $6,952,787
64
Exhibit B-4
CITY OF FRIDLEY, MINNESOTA
-- GENERAL FUND
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL
Year Ended December 31, 1985
With Comparative Actual Amounts for Year Ended December 31, 1984
1985
Variance-
-- Favorable 1984
Budget Actual (Unfavorable) Actual
.. General government:
Mayor and council -
Personal services $ 64,324 $ 58,966 $ 5,358 $ 59,205
Supplies and other charges 29,497 26,048 3,449 27,128
- 93,821 85,014 8,807 86,333
Planning commission -
,. Personal services 26,756 26,738 18 19,416
Supplies and other charges 7,649 7,629 20 3,784
34,405 34,367 38 23,200
-- Other commissions -
Personal services 11,814 3,770 8,044 6,276
Supplies and other charges 14,904 11,669 3,235 10,205
- 26,718 15,439 11,279 16,481
City Manager -
Personal services 144,974 139,269 5,705 125,967
". Supplies and other charges 55,297 55,272 25 43,652
200,271 194,541 5,730 169,619
.-. Personnel -
Personal services 36,196 36,164 32 25,789
Supplies and other charges 21,524 21,423 101 4,514
-. 57,720 57,587 133 30,303
Legal -
Personal services 4,596 4,522 74 5,687
- Supplies and other charges 120,084 120,034 50 105,290
124,680 124,556 124 110,977
.. Elections -
Personal services 15,093 9,271 5,822 29,460
Supplies and other charges 3,103 2,510 593 2,480
.. 18,196 11,781 6,415 31,940
Accounting -
Personal services 222,253 222,065 188 143,574
.. Supplies and other charges 66,464 65,845 619 63,649
288,717 287,910 807 207,223
Assessing -
Personal services 114,191 107,229 6,962 98,480
Supplies and other charges 30,935 30,681 254 31,843
145,126 137,910 7,216 130,323
Total general government 989,654 949,105 40,549 806,399
(Continued)
65
Exhibit B-4
Continued CITY OF FRIDLEY, MINNESOTA
GENERAL FUND
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL
Year Ended December 31, 1985
With Comparative Actual Amounts for Year Ended December 31, 1984 -
1985
Variance-
Favorable 1984
Budget Actual (Unfavorable) Actual
Public safety:
Police -
Personal services $1,665,988 $1,598,862 $ 67,126 $1,538,784 ,_
Supplies and other charges 206,264 203,381 2,883 198,844
1,872,252 1,802,243 70,009 1,737,628
Fire - -
Personal services 363,182 353,695 9,487 345,103
Supplies and other charges 74,596 73,934 662 66,357
437,778 427,629 10,149 411,460 -
Civil defense -
Personal services 53,040 38,601 14,439 48,265
Supplies and other charges 7,080 2,218 4,862 3,802
60,120 40,819 19,301 52,067
Total public safety 2,370,150 2,270,691 99,459 2,201,155 -
Civic center:
Personal services 63,366 63,274 92 60,460
Supplies and other charges 117,850 98,946 18,904 88,872 ' -
181,216 162,220 18,996 149,332
Public works: _
Code enforcement -
Personal services 123,871 123,342 529 141,579
Supplies and other charges 36,137 35,823 314 27,516 _
160,008 159,165 843 169,095
Planning -
Personal services 159,724 159,471 253 72,937 -
Supplies and other charges 145,626 145,205 421 238,558
305,350 304,676 674 311,495
--Engineering -
Personal services 109,083 109,066 17 84,396
Supplies and other charges 31,390 31,147 243 37,433
140,473 140,213 260 121,829 ""
Public works -
Personal services 787,484 780,379 7,105 679,184 _,
Supplies and other charges 737,774 545,501 192,273 605,776
1,525,258 1,325,880 199,378 1,284,960
Total public works 2,131,089 1,929,934 201,155 1,887,379 ' -
(Continued)
66
Exhibit B-4
Continued
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND
- SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL
Year Ended December 31, 1985
With Comparative Actual Amounts for Year Ended December 31, 1984
1985
Variance-
-' Favorable 1984
Budget Actual (Unfavorable) Actual
- Recreation and naturalist:
Naturalist -
Personal services $ 81,849 $ 62,991 $ 18,858 $ 79,094
Supplies and other charges 59,782 52,609 7,173 29,291
141,631 115,600 26,031 108,385
Recreation -
Personal services 288,579 280,992 7,587 240,805
Supplies and other charges 139,448 139,209 239 93,727
428,027 420,201 7,826 334,532
Total recreation and naturalist 569,658 535,801 33,857 442,917
Reserve for contingencies 281,239 -0- 281,239 -0-
Capital outlay expenditures -
City manager 181 181 288
-- Elections 23,923 23,055 868
Accounting 918 916 2 6,221
Assessing 414 414
Police 104,039 89,127 14,912 89,436
- Fire 77,600 61,846 15,754 8,139
Civic center 24,634 5,573 19,061 4,623
Code enforcement 250 250
.., Planning 39,400 38,833 567 49,073
Engineering 1,400 1,316 84 14,290
Public works 228,814 111,239 117,575 315,089
Recreation 3,745 798 2,947 4,359
- Naturalist 1,576 1,576
Total capital outlay 506,894 332,703 174,191 491,518
.... Total expenditures 7,029,900 6,180,454 849,446 5,978,700
Other financing uses:
Operating transfers out -
Capital Projects Funds 282,195 282,195 170,846
Special Assessment Fund 90,423 90,423 141,037
Internal Service Funds 11,251 11,251
- Total other financing uses 383,869 383,869 -0- 311,883
Total expenditures and
other financing uses $7,413,769 $6,564,323 $849,446 $6,290,583
67
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 activies.
Municipal State Aid Fund
This fund is used to account for the City's allocation of the state collected
highway user tax. The allocation is based on both population and the need
for construction of state aid streets in the City. Transfers are made from
this fund to the Special Assessment Fund for current year road construction
activity.
Revenue Sharing Fund
This fund was established to receive and account for the City's allocation of
Federal Revenue Sharing money. The amount available to a governmental unit
is allocated on the basis of a formula established by the Congress of the
United States. Fridley uses its revenue sharing money for reducing general
property taxes.
Cable TV Fund
This fund receives revenues from issuance of an annual license to the cable
TV provider. These revenues are used for the operation and maintenance of a
government access channel.
Home Ownership Fund
This fund receives revenues from a variety of sources for housing
rehabilitation.
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
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December 31, 1985
With Comparative Totals for December 31, 1984
Municipal
State Revenue Cable
Aid Sharing TV _-
Assets
Cash $ $ $ 5,511 -
Cash in escrow
Investments 1,233,507 80,401
Receivables: —'
Accounts 25,229
Interest
Taxes _.
Unremitted
Delinquent
Due from other funds
Due from other governments 13,679 49,716 "'
Total assets $1,247,186 $49,716 $111,141
Liabilities and Fund Balance
Liabilities:
Advance from city's general account $ $ 7,880 $
Accounts payable 5,269
Deposits payable
Salaries payable 242
Deferred revenue
Due to other funds
Total liabilities -0- 7,880 5,511
Fund balance:
Reserved for construction
Reserved for debt service
Unreserved -
Designated for subsequent
year's expenditures 402,821
Undesignated 844,365 41,836 105,630
Total fund balance 1,247,186 41,836 105,630
Total liabilities and
fund balance $1,247,186 $49,716 $111,141
70
Exhibit C-1
Home Totas
Ownership BRA 1985 1984
$ $ 1,112 $ 6,623 $ 2,441
11,292,009 11,292,009
1,546,360 2,860,268 2,043,836
4,331 29,560 13,589
21,680 21,680 8,684
1,410 1,410
6,779 6,779
26,027 61,009 87,036 10,231
63,395 147,449
$26,027 $12,934,690 $14,368,760 $2,226,230
$25,521 $ $ 33,401 $ 54,357
5,269 1,663
10,850 10,850 10,850
506 748 196
6,779 6,779
113,086 113,086 147,286
26,027 130,715 170,133 214,352
8,758,372 8,758,372
4,045,603 4,045,603
402,821 402,821
991,831` 1,609,057
-0- 12,803,975 14,198,627 2,011,878
$26,027 $12,934,690 $14,368,760 $2,226,230
71
CITY OF FRIDLEY, MINNESOTA -
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Year Ended December 31, 1985 --
With Comparative Totals for Year Ended December 31, 1984
Municipal
State Revenue Cable
Aid Sharing TV
Revenues:
Tax increment $ $ $
Licenses and permits 55,382
Intergovernmental revenue 97,152 216,324
Interest on investments 123,412 12,988 7,546
Miscellaneous --
Total revenues 220,564 229,312 62,928
Expenditures:
Current -
General government 750 35,236
Public works
Capital outlay 443
Total expenditures -0- 750 35,679
Excess of revenues over expenditures 220,564 228,562 27,249 --
Other financing sources (uses) :
Bond proceeds
Operating transfers out (142,863) (232,652) -0-
-'
Total other financing sources (uses) (142,863) (232,652) -0-
Excess (deficiency) of revenues and
other financing sources over "
expenditures and other financing
uses 77,701 (4,090) 27,249
Fund balance January 1 1,169,485 45,926 78,381
Fund balance December 31 $1,247,186 $ 41,836 $105,630
r
72
— Exhibit C-2
`.%
Home Total
Ownership HRA 1985 1984
$ $ 401,577 $ 401,577 $ 128,042
55,382 51,449
28,429 7,260 349,165 584,225
124,265 268,211 237,632
87,421 87,421 202,484
28,429 620,523 1,161,756 1,203,832
35,986 44,564
28,429 254,043 282,472 166,844
5,501,013 5,501,456 112,014
28,429 5,755,056 5,819,914 323,422
-0- (5,134,533) (4,658,158) 880,410
17,407,887 17,407,887
-0- (187,465) (562,980) (1,033,218)
-0- 17,220,422 16,844,907 (1,033,218)
12,085,889 12,186,749 (152,808)
-0- 718,086 2,011,878 2,164,686
$ -0- $12,803,975 $14,198,627 $2,011,878
73
Exhibit C-3
CITY.OF FRIDLEY, MINNESOTA
MUNICIPAL STATE AID SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEET —
December 31, 1985 and 1984
1985 1984
Assets .,
Investments $1,233,507 $1,101,860
Due from other governments 13,679 91,239
Total assets $1,247,186 $1,193,099
Liability and Fund Balance .,
Liability:
Advance from city's general account $ -0- $ 23,614 —
Fund balance:
Unreserved -
Designated for subsequent year's expenditures 402,821 402,821
Undesignated 844,365 766,664
Total fund balance 1,247,186 1,169,485
Total liability and fund balance $1,247,186 $1,193,099
74
Exhibit C-4
(C2
CITY OF FRIDLEY, MINNESOTA
MUNICIPAL STATE AID SPECIAL REVENUE FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 1985
With Comparative Amounts for Year Ended December 31, 1984
1985
Variance-
Favorable 1984
Budget Actual (Unfavorable) Actual
Revenues:
Intergovernmental - Minnesota
state aid $ 282,821 $ 97,152 $(185,669) $ 325,537
Interest on investments 120,000 123,412 3,412 132,365
Total revenues 402,821 220,564 (182,257) 457,902
Other financing uses:
Operating transfers out -
"" General Fund (402,821) (142,863) 259,958 (140,000)
Special Assessment Fund (285,508)
Total other financing uses (402,821) (142,863) 259,958 (425,508)
Excess of revenues over
expenditures and other
financing uses -0- 77,701 77,701 32,394
Fund balance January 1 1,169,485 1,169,485 1,137,091
Fund balance December 31 $1,169,485 $1,247,186 $ 77,701 $1,169,485
75
Exhibit C-5
q•-• AJ ^
^
CITY OF FRIDLEY, MINNESOTA
REVENUE SHARING SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEET
December 31, 1985 and 1984
1985 1984
Assets
Due from other governments $49,716 $56,210
Liability and Fund Balance
Liability:
Advance from city's general account $ 7,880 $10,284
Fund balance:
Unreserved - undesignated 41,836 45,926
Total liability and fund balance $49,716 $56,210
76
Exhibit C-6
CITY OF FRIDLEY, MINNESOTA
REVENUE SHARING SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 1985
With Comparative Amounts for Year Ended December 31, 1984
'-' 1985
Variance-
Favorable 1984
Budget Actual (Unfavorable) Actual
Revenues:
Intergovernmental -
" Revenue sharing $ 226,652 $ 216,324 $(10,328) $ 196,565
Interest on investments 6,000 12,988 6,988 7,662
Total revenues 232,652 229,312 (3,340) 204,227
Expenditures:
Current
General government -
Supplies and other charges 750 750 -0- 48
Excess of revenues over
expenditures 231,902 228,562 (3,340) 204,179
Other financing uses:
Operating transfers out -
General fund (232,652) (232,652) -0- (187,000)
�. Excess (deficiency) of revenues
over expenditures and other
financing uses (750) (4,090) (3,340) 17,179
Fund balance January 1 45,926 45,926 28,747
Fund balance December 31 $ 45,176 $ 41,836 $(3,340) $ 45,926
77
Exhibit C-7
IS
CITY OF FRIDLEY, MINNESOTA
CABLE TV SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEET
December 31, 1985 and 1984
1985 1984
Assets
Cash $ 5,511 $ 182
Investments 80,401 64,862 _,
Accounts receivable 25,229 13,589
Total assets $111,141 $78,633
Liabilities and Fund Balance
Liabilities: —'
Accounts payable $ 5,269 $ 137
Salaries payable 242 115
Total liabilities 5,511 252
Fund balance:
Unreserved - undesignated 105,630 78,381
Total liabilities and fund balance $111,141 $78,633
78
Exhibit C-8
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, 1985
With Comparative Amounts for Year Ended December 31, 1984
1985
Variance-
Favorable 1984
Budget Actual (Unfavorable) Actual
Revenues:
Licenses - Cable TV $ 51,490 $ 55,382 $ 3,892 $51,449
�.. Interest on investments 2,060 7,546 5,486 6,857
Total revenues 53,550 62,928 9,378 58,306
Expenditures:
Current
General government -
- Personal services 25,792 14,032 11,760 18,748
Supplies and other charges 25,922 21,204 4,718 25,768
Capital outlay 1,836 443 1,393
Total expenditures 53,550 35,679 17,871 44,516
Excess of revenues over
expenditures -0- 27,249 27,249 13,790
Other financing uses:
Transfer to general fund -0- -0- -0- (13,152)
Excess (deficiency) of revenues
over expenditures and other
financing uses 27,249 27,249 638
Fund balance January 1 78,381 78,381 -0- 77,743
Fund balance December 31 $ 78,381 $105,630 $27,249 $78,381
79
Exhibit C-9
CITY OF FRIDLEY, MINNESOTA
HOME OWNERSHIP SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEET
December 31, 1985 and 1984
1985 1984
Assets
Investments $ $10,565
Due from other funds 26,027 10,231
Total assets $26,027 $20,796
Liabilities and Fund Balance
Liabilities:
Advance from city's general account $25,521 $20,459 .,
Accounts payable 256
Salaries payable 506 81
Total liabilities 26,027 20,796 -_
Fund balance:
Unreserved - undesignated -0- -0-
Total liabilities and fund balance $26,027 $20,796
80
Exhibit C-10
CITY OF FRIDLEY, MINNESOTA
HOME OWNERSHIP SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
.� Year Ended December 31, 1985
With Comparative Amounts for Year Ended December 31, 1984
1985
Variance-
Favorable 1984
"" Budget Actual (Unfavorable) Actual
Revenues:
Intergovernmental -
Housing Redevelopment Authority $28,550 $28,429 $(121) $56,430
Expenditures:
Current
Public Works -
Personal services 23,300 23,276 24 44,659
Supplies and other charges 5,250 5,153 97 11,771
Total expenditures 28,550 28,429 121 56,430
... Excess of revenues over
expenditures -0- -0- -0- -0-
Fund balance January 1 -0- -0- -0- -0-
Fund balance December 31 $ -0- $ -0- $ -0- $ -0-
81
Exhibit C-11
CITY OF FRIDLEY, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY (HRA) SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEET
December 31, 1985 and 1984
1985 1984
Assets —
Cash $ 1,112 $ 2,259
Cash in escrow 11,292,009
Investments 1,546,360 866,549
Receivables:
Accounts 4,331 8,684
Interest 21,680 —
Taxes
Unremitted 1,410
Delinquent 6,779 _,
Due from other funds 61,009
Total assets $12,934,690 $877,492
Liabilities and Fund Balance
Liabilities:
Accounts payable $ $ 1,270
Deposits payable 10,850 10,850
Deferred revenue 6,779 -,
Due to other funds 113,086 147,286
Total liabilities 130,715 159,406
Fund balance:
Reserved for construction 8,758,372
Reserved for debt service 4,045,603 718,086
Total fund balance 12,803,975 718,086
Total liabilities and fund balance $12,934,690 $877,492 —'
82
Exhibit C-12
CITY OF FRIDLEY, MINNESOTA
HOUSING AND REDEVELOPMENT AUTHORITY (HRA) SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 1985
With Comparative Amounts for Year Ended December 31, 1984
1985
Variance-
Favorable 1984
Budget Actual (Unfavorable) Actual
Revenues:
Taxes -
Tax increment $ 401,000 $ 401,577 $ 577 $ 128,042
Intergovernmental revenue -
State credits 7,000 7,260 260 5,693
Interest on investments 120,000 124,265 4,265 90,748
Miscellaneous revenue:
Rent income 25,000 26,764 1,764 12,106
Sale of property 60,000 60,000 190,378
Other 475 657 182
Total miscellaneous revenue 85,475 87,421 1,946 202,484
Total revenues 613,475 620,523 7,048 426,967
Expenditures
Current -
Public works 260,000 254,043 5,957 110,414
._. Capital outlay 5,750,000 5,501,013 248,987 112,014
Total expenditures 6,010,000 5,755,056 254,944 222,428
.� Excess (deficiency) of revenues
over expenditures (5,396,525) (5,134,533) 261,992 204,539
_ Other financing sources (uses) :
Bond proceeds 17,000,000 17,407,887 407,887
Operating transfers in (out) -
Special Assessment Fund (407,558)
HRA Debt Service Fund (200,000) (187,465) 12,535
Total other financing
sources (uses) 16,800,000 17,220,422 420,422 (407,558)
Excess (deficiency) of revenues
and other financing sources
over expenditures and other
_.. financing uses 11,403,475 12,085,889 682,414 (203,019)
_.. Fund balance January 1 718,086 718,086 921,105
Fund balance December 31 $12,121,561 $12,803,975 $682,414 $ 718,086
83
DEBT SERVICE FUNDS
Debt Service Funds are used to finance and account for the payment of
principal and interest on all general obligation debt other than that
payable exclusively from special assessments or debt issued for and
serviced by governmental enterprises. Provisions are made in the City's
general property tax levy so that sufficient resources are available to
meet the general obligation debt. Tax increment money is used to service
the debt on redevelopment related bonds.
City Fund
This fund services the debt on one bond issue from 1965 for the
construction of the City's Civic Center.
HRA Fund
This fund services the debt of the tax increment bonds.
Exhibit D-1
-L-.33 c'
CITY OF FRIDLEY, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 1985
With Comparative Totals for December 31, 1984
Totals
City HRA 1985 1984
Assets
Cash $ $ 953 $ 953 $ 188
Investments 85,603 501,400 587,003 508,237
Receivables:
Taxes
Unremitted 514 514 1,971
Delinquent 2,134 2,134 5,233
Prepaid expenditures 36,274
Total assets $88,251 $502,353 $590,604 $551,903
Liability and Fund Balance
Liability:
Deferred revenue $ 2,134 $ -0- $ 2,134 $ 5,233
Fund balance:
Reserved for debt service 86,117 502,353 588,470 546,670
Total liability and fund balance $88,251 $502,353 $590,604 $551,903
85
Exhibit D-2
CITY OF FRIDLEY, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
Year Ended December 31, 1985 -
With Comparative Totals for Year Ended December 31, 1984
Totals
City HRA 1985 1984
Revenues:
Taxes $28,460 $ $ 28,460 $ 29,307
Tax increment 165,109 165,109 177,187
Intergovernmental - Homestead credit 6,467 6,467 6,541
Interest on investments 5,747 2,581 8,328 66,799
Total revenues 40,674 167,690 208,364 279,834
Expenditures:
Debt service
Principal retirement 35,000 85,000 120,000 85,000
Interest and fiscal charges 6,266 227,763 234,029 301,140
Total expenditures 41,266 312,763 354,029 386,140
Deficiency of revenues
over expenditures (592) (145,073) (145,665) (106,306)
Other financing sources: .�
Operating transfers in -
HRA Fund -0- 187,465 187,465 -0-
0.
Excess (deficiency) of revenues
and other financing sources
over expenditures (592) 42,392 41,800 (106,306)
Fund balance January 1 86,709 459,961 546,670 652,976
Fund balance December 31 $86,117 $ 502,353 $ 588,470 $ 546,670 ..
86
CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the resources expended to
acquire permanent or long term assets. These funds are established to
provide special accounting for bond proceeds, grants and contributions
designated for the acquisition of capital assets.
Capital project 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 money received from property taxes that
are used to finance major improvements and the acquistion of assets that
require a large capital outlay.
Sears Fund
This fund is used to account for the revenues and expenditures that are
related to the construction of an outdoor athletic recreation facility.
Civic Center Improvement Fund
This fund was established to account for the revenues and expenditures
associated with the interior remodeling of the Fridley Civic Center.
CITY OF FRIDLEY, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
December 31, 1985
With Comparative Totals for December 31, 1984
Civic
Capital Center .,
Improvement Sears Improvement
Assets
Cash $ $ $ 499,400
Investments 1,683,821 56,511
Taxes Receivable: —.
Unremitted 655
Delinquent 2,109
Due from other funds 25,000
Due from other governments
Advance to Management Information Services Fund 50,000
Total assets $1,761,585 $ 56,511 $ 499,400;
Liabilities and Fund Balance
Liabilities:
Advance from city's general account $ 136,006 $ $ --
Accounts payable
Deferred revenue 2,109
Total liabilities 138,115 -0- -0-
Fund balance:
Reserved for advance to other fund 50,000 —"
Reserved for construction 499,400
Unreserved -
Designated for fixed asset replacement 1,510,271 —
Designated for park improvement 63,199 50,000
Undesignated 6,511
_.
Total fund balance 1,623,470 56,511 499,400
Total liabilities and fund balance $1,761,585 $ 56,511 $ 499,400
88
Exhibit E-1
Totals
'-' 1985 1984
$ 499,400 $ 64,250
1,740,332 1,537,403
655 424
2,109 1,886
25,000 25,000
.. 111,567
50,000 75,000
$2,317,496 $1,815,530
$ 136,006 $ 108,544
62,713
2,109 1,886
138,115 173,143
50,000 75,000
499,400
1,510,271 1,501,183
113,199 63,199
6,511 3,005
2,179,381 1,642,387
$2,317,496 $1,815,530
89
CITY OF FRIDLEY, MINNESOTA
CAPITAL PROJECTS FUNDS _,
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
Year Ended December 31, 1985
With Comparative Totals for Year Ended December 31, 1984
Civic
Capital Center
Improvement Sears Improvement
Revenues:
Taxes -
Current ad valorem taxes $ 35,409 $ $ .,
Delinquent ad valorem taxes 1,080
Total taxes 36,489 -0- -0-
Intergovernmental revenue -
Homestead credit 8,270
State grant
Total intergovernmental revenue 8,270 -0- -0-
Interest on investments 157,134 3,506 -0-
Miscellaneous revenue -
Donations 50,000
Other
Total miscellaneous revenue -0- 50,000 -0-
Total revenues 201,893 53,506 -0-
(Continued)
90
Exhibit E-2
Totals
1985 1984
$ 35,409 $ 35,847
1,080 204
36,489 36,051
8,270 7,774
111,567
8,270 119,341
160,640 150,467
50,000 17,000
_ 160
50,000 17,160
255,399 323,019
91
Cam'
CITY OF FRIDLEY, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND —
CHANGES IN FUND BALANCES (Continued)
Year Ended December 31, 1985
With Comparative Totals for Year Ended December 31, 1984 -
Civic •■
Capital Center
Improvement Sears Improvement
Expenditures: -,
Current -
Capital projects
Construction contracts $ $ $ _
Engineering 600
Capital outlay
Total expenditures -0- -0- 600 -_
Excess (deficiency) of revenues
over expenditures 201,893 53,506 (600)
Other financing sources (uses) :
Operating transfers in (out) -
General Fund 32,195 250,000
Capital Improvement Fund (250,000) 250 000
North Park Fund '
Special Assessment Fund
Total other financing sources (uses) (217,805) -0- 500,000
Excess (deficiency) of revenues and
other financing sources over
expenditures and other financing uses (15,912) 53,506 499,400
Fund balance January 1 1,639,382 3,005
Fund balance December 31 $1,623,470 $56,511 $499,400 --
92
Exhibit E-2
Continued
Totals
1985 1984
$ $ 24,918
600 118,398
_..
84,259
600 227,575
254,799 95,444
282,195 170,846
(63,199)
63,199
(66,919)
282,195 103,927
536,994 199,371
1,642,387 1,443,016
3 $2,179,381 $1,642,387
4J
93
SPECIAL ASSESSMENT FUNDS
Special Assessment Funds are used to account for the construction and
financing of certain public improvements such as residential streets ,
sidewalks and storm sewers or for the provision of services which are to be
paid for solely by the benefited property owner. The fact that special
assessment improvements are paid for completely or in part by property
owners in a limited geographical area deemed to be benefited distinguishes
them from improvements that benefit the entire community and which are paid
for out of general revenues or through issuance of general obligation
bonds.
Special Assessments Fund
This fund is used for the construction of improvements and the collection
of assessments from properties benefiting from the improvements . The
payments for the principal and interest on bonds used to finance
improvements are expended through this fund.
Revolving Fund
This fund is used for providing temporary financing for small improvements
undertaken by the City until permanent financing is obtained.
Exhibit F-1
i3`
-- CITY OF FRIDLEY, MINNESOTA
SPECIAL ASSESSMENT FUNDS
COMBINING BALANCE SHEET
December 31, 1985
With Comparative Totals for December 31, 1984
- Special Totals
Assessment Revolving 1985 1984
.. Assets
Cash $ $ $ $ 256,954
Cash in escrow 3,015,614 3,015,614
Investments 8,488,308 879,146 9,367,454 7,260,790
Receivables:
Accounts 61,009
- Special Assessments
Deferred 3,428,297 60,910 3,489,207 4,141,622
Delinquent 335,375 2,592 337,967 364,006
_, Due from other funds 87,059 87,059 137 055
Due from other governments 175,233 175,233 56,059
Prepaid expenditures 25,822
Total assets $15,529,886 $942,648 $16,472,534 $12,303,317
Liabilities and Fund Balance
Liabilities:
- Advance from city's general account $ 1,583,299 $ 13,638 $ 1,596,937 $ 23,806
Accounts payable 24,292 24,292 3,737
Deposits payable 131,447 131,447 116,199
Contracts payable 26,974
Salaries payable 492 492 286
Deferred revenue 3,763,672 63,502 3,827,174 4,505,628
Due to other funds 61,009 61,009
'- Bonds payable 6,350,000 6,350,000 3,855,000
Total liabilities 11,782,764 208,587 11,991,351 8,531,630
Fund balance:
Reserved for encumbrances 562,249 562,249 562,248
,. Reserved for debt service 5,152,323 5,152,323 3,686,948
Unreserved - undesignated (1,967,450) 734,061 (1,233,389) (477,509)
Total fund balance 3,747,122 734,061 4,481,183 • 3,771,687
Total liabilities and
fund balance $15,529,886 $942,648 $16,472,534 $12,303,317
95
Exhibit F-2
CITY OF FRIDLEY, MINNESOTA
SPECIAL ASSESSMENT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Year Ended December 31, 1985
With Comparative Totals for Year Ended December 31, 1984
Special Totals
Assessment Revolving 1985 1984
Revenues:
Special assessments $1,068,354 $ 19,008 $1,087,362 $1,182,108
Intergovernmental revenue 165,531 165,531 64,-549
Interest on investments 790,676 78,535 869,211 862,158
Interest and penalties on assessments 17,759
Miscellaneous 127,713 127,713 18,041 ._
Total revenues 2,152,274 97,543 2,249,817 2,144,615
Expenditures:
Capital projects 1,202,588 1,202,588 1,429,431
Debt service -
Interest and fiscal charges 414,518 414,518 449,589
Total expenditures 1,617,106 -0- 1,617,106 1,879,020
Excess of revenues over
expenditures 535,168 97,543 632,711 265,595 --
Other financing sources (uses) :
Operating transfers in -
General Fund 90,423 90,423 141,037
Municipal State Aid Fund 285,508
HRA Fund 407,558
Capital Improvement Fund 66,919
Public Utility Fund 13,057
Operating transfers out -
Public Utility Fund
Y (13,638) (13,638) (23,806) --
Total other financing
sources (uses) 90,423 (13,638) 76,785 890,273
--Excess of revenues and
other financing sources
over expenditures and
other financing uses 625,591 83,905 709,496 1,155,868
Fund balance January 1 3,121,531 650,156 3,771,687 2,615,819
Fund balance December 31 $3,747,122 $734,061 $4,481,183 $3,771,687
96
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 muncipal enterprise on the same basis as they can the
performance of investor-owned enterprises.
Liquor Fund
This fund accounts for the operation of two municipal off-sale liquor
establishments.
Public Utilities Fund
This fund accounts for the operation of the City-owned sewer and water
system.
Exhibit G-1
CITY OF FRIDLEY, MINNESOTA
ENTERPRISE FUNDS
,_ COMBINING BALANCE SHEET
December 31, 1985
With Comparative Totals for December 31, 1984
Public Totals
-
Liquor Utilities 1985 1984
Assets
- Current assets:
Cash $ 128,897 $ 28,701 $ 157,598 $ 231,973
Investments 141,504 4,561,746 4,703,250 4,109,478
Accounts receivable 619,413 619,413 476,922
Due from other governments 94,800 94,800 157,895
Inventories 362,183 2,987 365,170 353,695
Prepaid expenses 124,810
-' Total current assets 632,584 5,307,647 5,940,231 5,454,773
Long term receivable - Metropolitan
Waste Control Commission -0- 316,874 316,874 334,662
Restricted assets (for debt service) :
Cash 13,638 13,638 23,806
.. Investments, at cost 94,855 94,855 64,243
Total restricted assets -0- 108,493 108,493 88,049
Property and equipment, at cost:
Property and equipment 472,554 14,163,855 14,636,409 14,574,972
Less: accumulated depreciation (134,824) (2,225,637) (2,360,461) (2,040,666)
Net property and equipment 337,730 11,938,218 12,275,948 12,534,306
Total assets $ 970,314 $17,671,232 $18,641,546 $18,411,790
.-. Liabilities and Fund Equity
Current liabilities:
Accounts payable $ 96,122 $ 16,014 $ 112,136 $ 267,241
Contracts payable 10,744
Salaries payable 6,268 9,382 15,650 9,400
Due to other governments 34,925 1,491 36,416 20,947
- Bonds payable 50,000 50,000 50,000
Total current liabilities 137,315 76,887 214,202 358,332
Long term liabilities:
Bonds payable (net of current
portion) -0- 70,000 70,000 120,000
Total liabilities 137,315 146,887 284,202 478,332
Fund equity:
Contributed capital 10,861,185 10,861,185 10,861,185
- Retained earnings - unreserved 832,999 6,663,160 7,496,159 7,072,273
Total fund equity 832,999 17,524,345 18,357,344 17,933,458
Total liabilities and
- fund equity $ 970,314 $17,671,232 $18,641,546 $18,411,790
97
Exhibit G-2
CITY OF FRIDLEY, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
Year Ended December 31, 1985
With Comparative Totals for Year Ended December 31, 1984
Public Totals
Liquor Utilities 1985 1984
Sales and cost of sales:
Sales $2,303,732 $ $2,303,732 $1,645,005
Cost of sales 1,979,197 1,979,197 1,372,932
Gross profit 324,535 -0- 324,535 272,073
Operating revenues:
Water sales and sewer rents 2,078,176 2,078,176 2,060,966
Other 218,239 218,239 340,240
Total operating revenues -0- 2,296,415 2,296,415 2,401,206
Operating expenses:
Personal services 236,237 456,058 692,295 670,845
Supplies and other charges - --
Disposal charges 1,023,558 1,023,558 750,547
Other 144,572 472,610 617,182 635,978
Depreciation 25,122 300,938 326,060 306,604
Total operating expenses 405,931 2,253,164 2,659,095 2,363,974
Operating income (loss) (81,396) 43,251 (38,145) 309,305
Non-operating revenues (expenses) :
Intergovernmental revenue -
local grant 2,250 -,
Interest on investments 30,775 428,873 459,648 454,084
Debt service (5,152) (5,152) (6,907)
Other 2,482 2,482 3,379
Total non-operating
revenues (expenses) 33,257 423,721 456,978 452,806
Income (loss) before operating
transfers (48,139) 466,972 418,833 762,111
Operating transfers in (out) :
General Fund (120,000)
Special Assessment Fund (13,057)
Revolving Fund 13,638 13,638 23,806 ._
Internal Service Funds 1,340 (9,925) (8,585)
Total operating transfers 1,340 3,713 5,053 (109,251)
Net income (loss) (46,799) 470,685 423,886 652,860
Retained earnings January 1 879,798 6,192,475 7,072,273 6,419,413
Retained earnings December 31 $ 832,999 $6,663,160 $7,496,159 $7,072,273
98
Exhibit G-3
CITY OF FRIDLEY, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION
-- Year Ended December 31, 1985
With Comparative Totals for Year Ended December 31, 1984
Public Totals
Liquor Utilities 1985 1984
... Sources of working capital:
Operations:
Net income (loss) for the year $(46,799) $ 470,685 $ 423,886 $ 652,860
Items not requiring working
capital - depreciation 25,122 300,938 326,060 306,604
Working capital provided (used)
., by operations (21,677) 771,623 749,946 959,464
Contributions from property owners 694,505
Decrease in long term receivable 17,788 17,788 16,904
Net decrease in restricted assets 75,605
Total sources of working
capital (21,677) 789,411 767,734 1,746,478
Uses of working capital:
Net increase in restricted assets 20,444 20,444
.. Acquisition of property and
equipment 46,981 20,722 67,703 842,264
Decrease in long term bonds payable 50,000 50,000 50,000
Total uses of working capital 46,981 91,166 138,147 892,264
Increase (decrease) in
working capital $(68,658) $ 698,245 $ 629,587 $ 854,214
Elements of increase (decrease)
- in working capital:
Cash $(71,218) $ (3,157) $ (74,375) (220,050)
Investments (88,659) 682,431 593,772 1,013,008
Accounts receivable 142,491 142,491 (61,662)
Due from other governments (63,095) (63,095) 86,026
Inventories 12,680 (1,205) 11,475 158,406
Prepaid expenses (124,810) (124,810) 51,409
- Accounts payable 95,900 59,205 155,105 (149,182)
Contracts payable 10,744 10,744 (10,744)
Salaries payable (1,855) (4,396) (6,251) (1,018)
Due to other governments (15,506) 37 (15,469) (11,979)
Increase (decrease) in
working capital $(68,658) $ 698,245 $ 629,587 $ 854,214
99
Exhibit G-4
CITY OF FRIDLEY, MINNESOTA
LIQUOR ENTERPRISE FUND
COMPARATIVE BALANCE SHEET ...
December 31, 1985 and 1984
1985 1984
Assets
Current assets:
Cash $ 128,897 $ 200,115
Investments 141,504 230,163
Inventories 362,183 349,503
Total current assets 632,584 779,781
Property and equipment, at cost:
Land 66,961 66,961
Buildings 174,116 166,612 _
Improvements other than buildings 13,656 1,469
Machinery and equipment 217,821 190,531
472,554 425,573
Less: accumulated depreciation (134,824) (109,701)
Net property and equipment 337,730 315,872
Total assets $ 970,314 $1,095,653 -
Liabilities and Fund Equity .,
Liabilities:
Accounts payable $ 96,122 $ 192,022 ,..,
Salaries payable 6,268 4,414
Due to other governments 34,925 19,419
Total liabilities 137,315 215,855 --
Fund equity:
Retained earnings - unreserved 832,999 879,798 -,
Total liabilities and fund equity $ 970,314 $1,095,653
100
Exhibit G-5
CITY OF FRIDLEY, MINNESOTA
-� LIQUOR ENTERPRISE FUND
COMPARATIVE STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN RETAINED EARNINGS
Years Ended December 31, 1985 and 1984
1985 1984
Sales and cost of sales:
Sales $2,303,732 $1,645,005
Cost of sales 1,979,197 1,372,932
Gross profit 324,535 272,073
Operating expenses:
Selling:
Personal services 167,519 133,609
Supplies and other charges 16,560 18,300
Total selling expenses 184,079 151,909
Overhead:
Supplies and other charges 89,959 61,314
Depreciation 25,122 13,822
Total overhead expenses 115,081 75,136
Administrative:
Personal services 68,718 61,567
�. Supplies and other charges 38,053 31,709
Total administrative expenses 106,771 93,276
Total operating expenses 405,931 320,321
Operating loss (81,396) (48,248)
Non-operating revenues:
Interest on investments 30,775 60,870
Other 2,482 2,579
Total non-operating revenues 33,257 63,449
Income (loss) before operating transfers (48,139) 15,201
Operating transfers in (out) :
General Fund (120,000)
Internal Service Funds 1,340
Total operating transfers 1,340 (120,000)
Net loss (46,799) (104,799)
Retained earnings January 1 879,798 984,597
Retained earnings December 31 $ 832,999 $ 879,798
101
Exhibit G-6
CITY OF FRIDLEY, MINNESOTA
LIQUOR ENTERPRISE FUND
COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION
Years Ended December 31, 1985 and 1984
1985 1984
Uses of working capital:
Operations:
Net loss for the year $(46,799) $(104,799)
Items not requiring working
capital - depreciation 25,122 13,822
Total used in operations (21,677) (90,977) --
Acquisition of property and equipment (46,981) (105,975)
Decrease in working capital $(68,658) $(196,952)
Elements of increase (decrease) in
working capital:
Cash $(71,218) $ 52,716
Investments (88,659) (285,588) —'
Inventories 12,680 158,196
Accounts payable 95,900 (107,033)
Salaries payable (1,855) (1,489)
Due to other governments (15,506) (13,754)
Decrease in working capital $(68,658) $(196,952)
102
Exhibit G-7
CITY OF FRIDLEY, MINNESOTA
PUBLIC UTILITY ENTERPRISE FUND
COMPARATIVE BALANCE SHEET
December 31, 1985 and 1984
.., 1985 1984
Assets
Current assets:
�.. Cash $ 28,701 $ 31,858
Investments 4,561,746 3,879,315
Accounts receivable 619,413 476,922
Due from other governments 94,800 157,895
Inventories 2,987 4,192
Prepaid expense 124,810
Total current assets 5,307,647 4,674,992
Long-term receivable - Metropolitan
Waste Control Commission 316,874 334,662
Restricted assets:
Cash 13,638 23,806
Investments, at cost 94,855 64,243
Total restricted assets 108,493 88,049
Property and equipment, at cost:
Land 154,881 154,881
Buildings 824,078 824,078
Improvements other than buildings 233,827 233,827
Machinery and equipment 2,089,884 2,075,428
Water and sewer lines 10,861,185 10,861,185
14,163,855 14,149,399
Less: accumulated depreciation (2,225,637) (1,930,965)
Net property and equipment 11,938,218 12,218,434
Total assets $17,671,232 $17,316,137
Liabilities and Fund Equity
Current liabilities:
Accounts payable $ 16,014 $ 75,219
Contracts payable 10,744
Salaries payable 9,382 4,986
Due to other governments 1,491 1,528
Bonds payable 50,000 50,000
Total current liabilities 76,887 142,477
Long term liabilities:
Bonds payable (net of current portion) 70,000 120,000
Total liabilities 146,887 262,477
Fund equity:
Contributed capital 10,861,185 10,861,185
Retained earnings - unreserved 6,663,160 6,192,475
_.. Total fund equity 17,524,345 17,053,660
Total liabilities and fund equity $17,671,232 $17,316,137
103
Exhibit G-8
CITY OF FRIDLEY, MINNESOTA
PUBLIC UTILITY ENTERPRISE FUND
COMPARATIVE STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN RETAINED EARNINGS
Years Ended December 31, 1985 and 1984
1985 1984
Operating revenues:
Water sales and sewer rents $2,078,176 $2,060,966
Other 218,239 340,240 -^
Total operating revenues 2,296,415 2,401,206
Operating expenses: --
Personal services 456,058 475,669
Supplies and other charges -
Disposal charges 1,023,558 750,547
Other 472,610 524,655
Depreciation 300,938 292,782
Total operating expenses 2,253,164 2,043,653
Operating income 43,251 357,553
Non-operating revenues (expenses) : --
Intergovernmental revenue - local grant 2,250
Interest on investments 428,873 393,214
Debt service (5,152) (6,907)
Other 800
Total non-operating revenues (expenses) 423,721 389,357
Income before operating transfers 466,972 746,910
Operating transfers in (out) : —'
Special Assessment Fund (13,057)
Revolving Fund 13,638 23,806
Internal Service Funds (9,925)
Total operating transfers 3,713 10,749
Net income 470,685 757,659 ,^
Retained earnings January 1 6,192,475 5,434,816
Retained earnings December 31 $6,663,160 $6,192,475
104
Exhibit G-9
CITY OF FRIDLEY, MINNESOTA
PUBLIC UTILITY ENTERPRISE FUND
COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION
Years Ended December 31, 1985 and 1984
1985 1984
Sources of working capital:
Operations:
Net income for the year $ 470,685 $ 757,659
Items not requiring working
capital - depreciation 300,938 292,782
Working capital provided by operations 771,623 1,050,441
Contributions from property owners 694,505
Decrease in long term receivable 17,788 16,904
Net decrease in restricted assets 75,605
Total sources of working capital 789,411 1,837,455
... Uses of working capital:
Net increase in restricted assets 20,444
Acquisition of property and equipment 20,722 736,289
Decrease in long term revenue bonds payable 50,000 50,000
Total uses of working capital 91,166 786,289
Increase in working capital $ 698,245 $1,051,166
Elements of increase (decrease) in
working capital:
Cash $ (3,157) $ (272,766)
Investments 682,431 1,298,596
Receivables 142,491 (61,662)
Due from other governments (63,095) 86,026
Inventories (1,205) 210
Prepaid expenses (124,810) 51,409
Accounts payable 59,205 (42,149)
Contracts payable 10,744 (10,744)
Salaries payable (4,396) 471
Due to other governments 37 1,775
Increase in working capital $ 698,245 $1,051,166
105
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.
Management Information Services Fund
This fund is used to account for all revenues and expenses associated with
the City-operated computerized information system that handles the
information processing needs of the City.
Exhibit H-1
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
Gj December 31, 1985
With Comparative Totals for December 31, 1984
Management
Employee Information Totals
Benefits Services 1985 1984
Assets
Current assets:
Cash $ 19,836 $ $ 19,836 $ 54,896
Investments 1,175,592 52,891 1,228,483 1,054,634
Total current assets 1,195,428 52,891 1,248,319 1,109,530
Property and equipment, at cost:
Property and equipment 178,802 178,802 155,467
Less: accumulated depreciation (63,179) (63,179) (28,763)
-. Net property and equipment -0- 115,623 115,623 126,704
Total assets $1,195,428 $168,514 $1,363,942 $1,236,234
Liabilities .and Fund Equity
Current liabilities:
Accounts payable $ $ 16,182 $ 16,182
$ 37,570
Leave payable 834,301 834,301 854,137
Due to other funds 25,000 25,000 25,000
Due to other governments 8,859 8,859 7,729
Total current liabilities 843,160 41,182 884,342 924,436
Long term liabilities:
Advance from Capital Improvement
Fund (net of current portion) 50,000 50,000 75,000
Total liabilities 843,160 91,182 934,342 999,436
Fund equity:
Retained earnings -
Reserved 352,268 77,332 429,600 263,724
Unreserved (26,926)
Total fund equity 352,268 77,332 429,600 236,798
Total liabilities and
fund equity $1,195,428 $168,514 $1,363,942 $1,236,234
107
Exhibit H-2 CITY OF FRIDLEY, MINNESOTA .-
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
Year Ended December 31, 1985
With Comparative Totals for Year Ended December 31, 1984
Management
Employee Information Totals
Benefits Services 1985 1984 ._
Operating revenues:
Charges for services $ 186,001 $163,173 $ 349,174 $ 993,377
Operating expenses:
Personal services 586
Supplies and other services 74,731 74,731 112,442 -
Benefits payments 163,238 163,238 722,616
Depreciation 34,416 34,416 23,205
Total operating expenses 163,238 109,147 272,385 858,849 _
Operating income 22,763 54,026 76,789 134,528
Non-operating revenues (expenses) :
Interest income 103,455 103,455 ,-> 77,818
Debt service (7,000) (7,000)` (8,750)
Other (278) (278)- 4,407 -
Total non-operating revenues
(expenses) 103,455 (7,278) 96,177 73,475
Income before operating
transfers 126,218 46,748 172,966 208,003
Operating transfers in (out) :
General Fund 11,251 11,251
Public Utilities Fund 9,925 9,925 _
Liquor Fund (1,340) (1,340)
Total operating transfers 19,836 -0- 19,836 -0-
Net income 146,054 46,748 192,802 208,003 -
Retained earnings January 1
as previously stated 206,214 30,584 236,798 846,172 -
Adjustment: See note 14 -0- -0- -0- (817,377)
Retained earnings January 1
as restated 206,214 30,584 236,798 28,795
Retained earnings December 31 $ 352,268 $ 77,332 $ 429,600 $ 236,798 -
el 06-1
108
Exhibit H-3
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION
Year Ended December 31, 1985
With Comparative Totals for Year Ended December 31, 1984
Management
Employee Information Totals
Benefits Services 1985 1984
Sources of working capital:
Operations:
Net income for the year $146,054 $ 46,748 $192,802 $208,003
Items not requiring working
capital - depreciation 34,416 34,416 23,205
Total sources of working
capital 146,054 81,164 227,218 231,208
Uses of working capital:
Acquisition of property and equipment 23,335 23,335 76,550
Decrease in long term advance from
Capital Improvement Fund 25,000 25,000 25,000
Total uses of working capital -0- 48,335 48,335 101,550
Increase in working capital $146,054 $ 32,829 $178,883 $129,658
Elements of increase (decrease)
in working capital:
Cash $ 6,390 $(41,450) $(35,060) $(82,734)
Investments 120,958 52,891 173,849 160,525
Accounts payable 21,388 21,388 2,085
Leave payable 19,836 19,836 53,298
Due to other governments (1,130) (1,130) (3,516)
Increase in working capital $146,054 $ 32,829 $178,883 $129,658
109
Exhibit H-4
CITY OF FRIDLEY, MINNESOTA
EMPLOYEE BENEFITS INTERNAL SERVICE FUND
COMPARATIVE BALANCE SHEET —
December 31, 1985 and 1984
1985 1984
Assets —
Cash $ 19,836 $ 13,446
Investments 1,175,592 1,054,634
Total assets $1,195,428 $1,068,080
Liabilities and Fund Equity
Liabilities: —
Leave payable 834,301 854,137
Due to other governments 8,859 7,729
Total liabilities 843,160 861,866 —
Fund equity:
Retained earnings -
Reserved for employee benefits 352,268 206,214
Total liabilities and fund equity $1,195,428 $1,068,080
ASS -
110
Exhibit H-5
CITY OF FRIDLEY, MINNESOTA
_ EMPLOYEE BENEFITS INTERNAL SERVICE FUND
COMPARATIVE STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN RETAINED EARNINGS
Years Ended December 31, 1985 and 1984
1985 1984
Operating revenues:
Charges for services $186,001 $ 856,659
Operating expenses:
Benefit payments 163,238 722,616
Operating income 22,763 134,043
Non-operating revenues:
Interest income 103,455 77,818
Total non-operating revenues 103,455 77,818
Income before operating transfers 126,218 211,861
Operating transfers in (out) :
General Fund 11,251
Public Utilities Fund 9,925
Liquor Fund (1,340)
Total operating transfers 19,836 -0-
"' Net income 146,054 211,861
Retained earnings January 1
as previously reported 206,214 811,730
Adjustment: See note 14 (817,377)
Retained earnings January 1 as restated 206,214 (5,647)
Fund balance December 31 $352,268 $ 206,214
111
Exhibit H-6
CITY OF FRIDLEY, MINNESOTA
EMPLOYEE BENEFITS INTERNAL SERVICE FUND
COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION
Years Ended December 31, 1985 and 1984
1985 1984
Sources of working capital:
Operations:
Net income $146,054 $211,861
Elements of increase (decrease) in
working capital:
Cash 6,390 (76,359) .^
Investments 120,958 238,438
Leave payable 19,836 53,298
Due to other governments (1,130) (3,516)
Increase in working capital $146,054 $211,861
112
Exhibit H-7
CITY OF FRIDLEY, MINNESOTA
MANAGEMENT INFORMATION SERVICES INTERNAL SERVICE FUND
COMPARATIVE BALANCE SHEET
December 31, 1985 and 1984
1985 1984
Assets
Current assets:
Cash $ $ 41,450
Investments 52,891
Total current assets 52,891 41,450
Property and equipment, at cost:
Machinery and equipment 178,802 155,467
Less: accumulated depreciation (63,179) (28,763)
Net property and equipment 115,623 126,704
Total assets
$168,514 $168,154
Liabilities and Fund Equity
-- Current liabilities:
Accounts payable $ 16,182 $ 37,570
Due to other funds 25,000 25,000
Total current liabilities 41,182 62,570
Long term liabilities:
Advance from Capital Improvement Fund
(net of current portion) 50,000 75,000
Total liabilities 91,182 137,570
Fund equity:
Retained earnings -
Reserved for capital outlay 77,332 57,510
Unreserved (26,926)
Total fund equity 77,332 30,584
Total liabilities and fund equity $168,514 $168,154
113
Exhibit H-8
CITY OF FRIDLEY, MINNESOTA
MANAGEMENT INFORMATION SERVICES INTERNAL SERVICE FUND
COMPARATIVE STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN RETAINED EARNINGS
Years Ended December 31, 1985 and 1984
1985 1984
Operating revenues:
Charges for services $163,173 $136,718
Operating expenses:
Personal services 586
Supplies and other services 74,731 112,442
Depreciation 34,416 23,205
Total operating expenses 109,147 136,233
Operating income 54,026 485 —
Non-operating revenues (expenses) :
Debt service (7,000) (8,750)
Other (278) 4,407
Total non-operating revenues (expenses) (7,278) (4,343)
Net income (loss) 46,748 (3,858)
Retained earnings January 1 30,584 34,442
Retained earnings December 31 $ 77,332 $ 30,584
114
Exhibit H-9
CITY OF FRIDLEY, MINNESOTA
MANAGEMENT INFORMATION SERVICES INTERNAL SERVICE FUND
-. COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION
Years Ended December 31, 1985 and 1984
1985 1984
Sources of working capital:
Operations:
Net income (loss) for the year $ 46,748 $ (3,858)
Items not requiring working
capital - depreciation 34,416 23,205
Total sources of working capital 81,164 19,347
Uses of working capital:
Acquisition of property and equipment 23,335 76,550
Decrease in long term advance from
Capital Improvement Fund 25,000 25,000
Total uses of working capital 48,335 101,550
Increase (decrease) in working capital $ 32,829 $(82,203)
Elements of increase (decrease) in
working capital:
Cash $(41 ,450) $ (6,375)
Investments 52,891 (77,913)
Accounts payable 21,388 2,085
Increase (decrease) in working capital $ 32,829 $(82,203)
115
•
TRUST AND AGENCY FUNDS
Trust and Agency Funds are used to account for assets held by a government in
a trustee or agent capacity for individuals, private organizations, other
governments or other funds.
Expendable Trust Fund
The City of Fridley maintains only one Expendable Trust Fund that is used to
defray the city adminstrative cost associated with the issuance of industrial
revenue development bonds.
Agency Fund
This Fund was established to account for the collection of taxes received
from the County on behalf of the Six Cities Watershed District.
Exhibit 1-1
CITY OF FRIDLEY, MINNESOTA
1( TRUST AND AGENCY FUND
COMBINING BALANCE SHEET
December 31, 1985 and 1984
Expendable Totals
Trust Agency 1985 1984
Assets
Cash $ 2,333 '$ 6 $ 2,339 $
Investments 44080 44,080 20,437
Taxes receivable:
Unremitted 120 120
Delinquent 955 955
Total assets $46,413 $1,081 $47,494 $20,437
Liabilities and Fund Balance
...
Liabilities:
Accounts payable $ 5,199 $ $ 5,199 $
Deposits payable 33,721 33,721 14,430
Deferred revenue 955 955
Due to other governments 126 126
Total liabilities 38,920 1,081 40,001 14,430
Fund balance:
Unreserved - undesignated 7,493 -0- 7,493 6,007
Total liabilities and fund balance $46,413 $1,081 $47,494 $20,437
117
Exhibit 1-2 CZ
CITY OF FRIDLEY, MINNESOSOTA
TRUST FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND -^
CHANGES IN FUND BALANCE
Years Ended December 31, 1985 and 1984
1985 1984
Revenues:
Interest on investments $1,486 $3,725
Fund balance, January 1 6,007 2,282
Fund balance, December 31 $7,493 $6,007
118
/�
Exhibit 1-3
CITY OF FRIDLEY, MINNESOTA
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED DECEMBER 31, 1985
Balance Balance
January 1 Additions Deletions December 31
Assets
Cash $ $ 9,198 $9,192 $ 6
Taxes Receivable:
Unremitted 120 120
Delinquent 955 955
Total assets $ -0- $10,273 $9,192 $1,081
Liabilities
Deferred revenue $ $ 955 $ $ 955
Due to other governments 9,198 9,072 126
Total liabilities $ -0- $10,153 $9,072 $1,081
119
GENERAL FIXED ASSET ACCOUNT GROUP
The General Fixed Asset Account Group is set up to account for long-lived assets not accounted
for in an enterprise, trust or internal service fund.
Exhibit J-1
CITY OF FRIDLEY, MINNESOTA
COMPARATIVE STATEMENT OF GENERAL FIXED ASSETS
December 31, 1985 and 1984
1985 1984
General fixed assets:
Land $ 1,678,372 $ 1,632,207
Building 1,773,058 1,766,372
Improvements other than building 16,286,590 16,236,688
Machinery and equipment 2,279,651 2,064,165
Construction in progress 2,309,766 1,133,047
Total general fixed assets $24,327,437 $22,832,479
Investment in general fixed assets from:
General obligation bonds $ 856,597 $ 856,597
Federal and state aid 1,632,960 1,594,128
General fund revenues 5,214,906 4,970,499
Special revenue fund revenues 36,438 1,438
Special assessments 15,222,985 14,046,266
Private gifts 730,628 730,628
Other sources 632,923 632,923
Total investment in general fixed assets $24,327,437 $22,832,479
121
Exhibit J-2
'..i:,6.--)i,_ i,-t J E
f ,,e d , ° I Pte.
CITY OF FRIDLEY, MINNESOTA ..
SCHEDULE OF GENERAL FIXED ASSETS -
BY FUNCTION AND ACTIVITY
December 31, 1985
Improvements Machinery
Other than and
Total Land Buildings Buildings Equipment
Function and activity
0
General government 0�
City manager $ 39,150 $ $ $ $ 39,150
Accounting 73,589 73,589
Assessing 7,080 7,080
Elections 33,790 33,790 --
Planning 12,333 12,333
Civic center 734,887 52,496 602,440 26,175 53,776
Total general government 900,829 52,496 602,440 26,175 219,718 -
Public safety
Police protection LIDS 327,199 200 326,999
Fire protection >4; 573,047 142,532 430,515
Inspectional services (a)S- 13,480 13,480
Civil defense 5iD 27,192 27,192
Total public safety 940,918 -0- 142,732 -0- 798,186
Public works l9
Engineering 49,467 49,467 -
Street improvements 9,707,614 5,764 9,701,850
Storm sewer 4,972,736 4,972,736
Traffic signal (0 138,243 138,243
City garage 1,160,675 97,940 347,698 18,522 696,515 .,
Parks 3,318,008 1,216,114 244,020 1,367,194 490,680
Total public works 19,346,743 1,319,818 591,718 16,198,545 1,236,662
Recreation/Naturalist
Recreation 798 798
Naturalist 828,383 306,058 436,168 61,870 24,287 -
Total recreation/naturalist 829,181 306,058 436,168 61,870 25,085
Total general fixed assets _
allocated to functions 22,017,671 $1,678,372 $1,773,058 $16,286,590 $2,279,651
Construction in progress 2,309,766 ,^
Total fixed assets $24,327,437
122
Exhibit J-3
- CITY OF FRIDLEY, MINNESOTA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS -
BY FUNCTION AND ACTIVITY
- Year Ended December 31, 1985
General General
Fixed Fixed
Assets Assets
-1/1/85 Additions Deductions 12/31/85
Function and activity
- General government
City manager $ 39,15 • $ $ $ 39,150
Accounting 71,061 2,621 93 73,589
_, Assessing 7,080 7,080
Elections 18,658 15,132 33,790
Planning 12,333 12,333
Civic center 688,140 46,791 44 734,887
Total general government 836,422 64,544 137 900,829
Public safety
Public protection 277,859 89,127 39,787 327,199
Fire protection 511,870 - 61,847 670 573,047
Inspectional services 13,480 13,480
CivJl defense 27,192 27,192
Total public safety 830,401 150,974 40,457 940,918
-. Public works
Engineering 51,230 3,173 4,936 49,467
Street improvements 9,707,614 9,707,614
Water, sewer and storm sewer 4,972,736 4,972,736
-` Traffic signal 138,243 138,243
City garage 1,097,146 64,659 1,130 1,160,675
Parks 3,237,619 80,389 3,318,008
.. Total public works 19,204,588 148,221 6,066 19,346,743
Recreation/Naturalist
.. Recreation 798 798
Naturalist 828,021 362 828,383
Total recreation/naturalist 828,021 1,160 -0- 829,181
"' Construction in progress 1,133,047 1,176,719 -0- 2,309,766
Total general fixed assets $22,832,479 $1,541,618 $ 46,660 $24,327,437
123
GENERAL LONG TERM DEBT ACCOUNT GROUP
The General Long Term Debt Account Group is set up to account for unmatured
principal and bonds , warrants , notes , or other forms of long term
indebtedness that is secured by the full faith and credit of the City and
is not deemed the primary obligation of any specific special assessment or
enterprise fund of the City.
1
Exhibit K-1
CITY OF FRIDLEY, MINNESOTA
COMPARATIVE STATEMENT OF GENERAL LONG-TERM DEBT
-- December 31, 1985 and 1984
1985 1984
Amount available and to be provided for
the payment of general long-term debt
Amount available in Debt Service Fund $ 588,470 $ 546,670
Amount to be provided by future taxes 15,066,530 2,898,330
Total available and to be provided $15,655,000 $3,445,000
General long-term debt payable
General long-term debt payable:
General obligation tax increment
redevelopment bonds $11,550,000 $3,375,000
Tax increment revenue bonds 4,070,000
Civic center bonds 35,000 70,000
Total general long-term debt payable $15,655,000 $3,445,000
125
SUPPLEMENTAL SECTION
Exhibit L-1
G M H C o GEORGE M. HANSEN COMPANY, P.A.
A Professional Corporation of Certified Public Ae ounlanr.c
City Council
City of Fridley, Minnesota
We have examined the combined financial statements of the City of Fridley,
Minnesota, as of and for the year ended December 31 , 1985, and have issued our
report thereon dated May 21 , 1986. As part of our examination, we made a study
and evaluation of the system of internal accounting control of the City to the
extent we considered necessary to evaluate the system as required by generally
accepted auditing standards and the standards for financial and compliance audits
contained in the U.S. General Accounting Office's Standards for Audit of
.. Governmental Organizations. Programs. Activities and Functions, the Single Audit
Act of 1984 and the provisions of OMB Circular A-128 Audits of State and Local
Governjienxs. For the purpose of this report, we have classified the significant
internal accounting controls in the categories of revenues, disbursements,
financing and external financial reporting.
The purpose of our study and evaluation was to determine the nature, timing and
extent of performing the auditing procedures necessary for expressing an opinion
on the entity's financial statements. Our study and evaluation was more limited
than would be necessary to express an opinion on the system of internal
accounting control taken as a whole or on any of the categories of controls
identified above.
The City is responsible for establishing and maintaining a system of internal
accounting control. In fulfilling this responsibility, estimates and judgments
by management are required to assess the expected benefits and related costs of
control procedures. The objectives of a system are to provide management with
.., reasonable, but not absolute, assurance that assets are safeguarded against loss
from unauthorized use or disposition, the City is managing its Federal financial
assistance programs in compliance with laws and regulations, and that
transactions are executed in accordance with management's authorization and
recorded properly to permit the preparation of financial statements in accordance
with generally accepted accounting principles.
Because of inherent limitations in any system of internal accounting control,
errors or irregularities may nevertheless occur and not be detected. Also,
projection of any evaluation of the system to future periods is subject to the
risk that procedures may become inadequate because of changes in conditions or
that the degree of compliance with the procedures may deteriorate.
Our study and evaluation made for the limited purpose described in the first
paragraph would not necessarily disclose all material weaknesses in the system.
Accordingly, we do not express an opinion on the system of internal accounting
control of the City taken as a whole or on any of the categories of controls
identified in the first paragraph. Our study and evaluation disclosed no
conditions that we believe to be material weaknesses.
/MO This report is intended solely for the use of the City, the Federal cognizant
audit agency, and other Federal agencies and should not be used for any other
purpose.. %
June 2, 1986
1433 UTICA AVENUE SOUTH, SUITE 175 MINNEAPOLIS, MINNESOTA 55416 61 2/546-2566
127
Exhibit L-2
G M H C o GEORGE M. HANSEN COMPANY, P.A.
A Professional Corporation of Certified Public Accountants
AUDITORS' COMMENTS ON COMPLIANCE
City Council
City of Fridley, Minnesota
We have examined the combined financial statements of the City of Fridley,
-. Minnesota, as of and for the year ended December 31 , 1985, and have issued our
report thereon dated May 21, 1986. Our examination was made in accordance with
generally accepted auditing standards; the provisions of ,Standards for Audit of
Gover..gntal Organizations., Progr ms. Activities and Functions, promulgated by
the U.S. Comptroller General, as they pertain to financial and compliance audits;
The Single Audit Act of 1984: and the provisions of OMB Circular A-128, Audits of
State and Local Governments; and, accordingly, included such tests of the
accounting records and such other auditing procedures as we considered necessary
in the circumstances.
In connection with the examination referred to above, a representative number of
charges to Federal awards were selected to determine if Federal funds are being
expended in accordance with the terms of applicable agreements and the provisions
_ of Federal law or regulations that could have a material effect on the financial
statements or on the awards tested. The results of our tests indicate that for
the items tested, the City of Fridley, Minnesota complied with the material terms
and conditions of the Federal award agreements, except for the notice that the
- City does not discriminate on the basis of handicap in employment or in admission
access to, or treatment in its prorams and activities was not published.
Further, for the items not tested, based on our examination and the procedures
— referred to above, nothing came to our attention to indicate that the City of
Fridley, Minnesota had not complied with the significant compliance terms and
conditions of the awards referred to above.
This report is intended solely for the use of the City of Fridley, Minnesota, the
Federal cognizant audit agency, and other Federal agencies and should not be used
for any other purpose. This restriction is not intended to limit the
distribution of this report, which is a matter of public record.
//' 'c
June 2, 1986
— 1433 UTICA AVENUE SOUTH, SUITE 175 MINNEAPOLIS, MINNESOTA 55416 612/546-2566
129
Exhibit L-3
CITY OF FRIDLEY, MINNESOTA
SCHEDULE OF FEDERAL GRANT ACTIVITY
YEAR ENDED DECEMBER 31, 1985
Community
Development
.-. Revenue Block
Sharing Grant
Revenues:
Federal grants $216,324 $150,712
Interest on investments 12,988
Total revenues 229,312 150,712
Expenditures:
Personal services 124,000 1,370
Professional services 750
Human services allocations 30,358
Contractual services 83,984
Supplies and other expenses 68,252
Capital outlay 40,400 35,000
Total expenditures 233,402 150,712
Excess of revenues over
expenditures (4,090) -0-
Fund Balance, January 1 45,926 -0-
Fund Balance, December 31 $ 41,836 $ -0-
131
Exhibit L-4
CITY OF FRIDLEY, MINNESOTA
SCHEDULE OF ASSESSED VALUATION AND LONG-TERM DEBT
FOR THE TAX INCREMMENT FINANCING DISTRICT
December 31, 1985
Redevelopment
District .-.
Original Assessed Value $ 7,286,399
Current Assessed Value $16,710,833
Captured Assessed Value -
retained by the Authority $ 9,424,434 -'
Bonds Issued:
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 1982 600,000
Tax Increment Revenue -.
Refunding Bonds of 1985 4,070,000
General Obligation Tax
Increment Redevelopment
Bonds of 1985 11,550,000
Total bonds issued $19,045,000
Amounts Redeemed:
Paid $ (135,000)
Defeased (3,290,000)
Total amount redeemed (3,425,000)
Outstanding bonds at December 31, 1985 $15,620,000
132
Exhibit L-5
CITY OF FRIDLEY, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS
FOR THE TAX INCREMENT FINANCING DISTRICT
DECEMBER 31, 1985
Current Year Prior Years Total
Sources of Funds:
Bond proceeds $17,407,887 $3,385,636 $20,793,523
Tax increments received 573,946 1,218,054 1,792,000
Interest on invested funds 125,717 820,230 945,947
Real estate sales 60,000 200,428 260,428
Rental 26,764 85,411 112,175
" Home Ownership revenue 1,129 8,996 10,125
Other 657 285,000 285,657
Total sources of funds 18,196,100 6,003,755 24,199,855
Uses of Funds:
Land acquisition 5,402,513 2,719,905 8,122,418
Site improvements or
preparation costs 98,500 98,500
Installation of public
utilities and improvements 7,917 7,917
Bond payments
Principal 85,000 50,000 135,000
Interest 231,475 856,311 1,087,786
Administrative costs 241,138 1,159,749 1,400,887
Other 9,193 31,826 41,019
Total uses of funds 6,067,819 4,825,708 10,893,527
District Balance $12,128,281 $1,178,047 $13,306,328
133
STATISTICAL SECTION
OEM
a
a
OEM
Table 1
CITY OF FRIDLEY, MINNESOTA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1)
LAST TEN FISCAL YEARS
Fiscal General Public Civic Public Recreation, Debt
Year Government Safety Center Works Naturalist Service Total
1976 $ 476,286 $1,146,181 $ 80,067 $ 879,626 $ 699,304 $ $3,281,464
1977 484,663 1,239,730 109,647 928,742 839,151 3,601,933
1978 572,381 1,446,302 102,444 1,028,594 822,095 3,971,816
1979 581,800 1,495,493 103,387 1,056,758 909,317 38,561 4,185,316
1980 618,215 1,737,883 128,795 1,111,066 839,271 53,569 4,488,799
1981 725,095 1,994,788 137,976 1,430,657 1,087,811 52,545 5,428,872
1982 829,434 1,939,996 115,893 1,321,993 911,141 232,793 5,351,250
1983 796,799 2,148,834 156,708 1,881,666(2) 442,703(2) 325,707 5,752,417
1984 850,963 2,201,155 149,332 2,054,223(2) 442,917(2) 386,140 6,084,730
1985 985,091 2,270,691 162,220 2,212,406(2) 535,801(2) 354,029 6,520,238
Note
(1) Includes General, Special Revenue and Debt Service Funds
(2) Parks Maintenance activity is now under Public Works
135
Table 2
CITY OF FRIDLEY, MINNESOTA
GENERAL REVENUES BY SOURCE (1)
LAST TEN FISCAL YEARS
Inter- Charges
General govern- For
Fiscal Property Licenses mental Current Miscellaneous Total
Year Tax & Permits Revenue Services Revenue Revenue
1976 $1,762,205 $210,904 $ 811,406 $ 63,200 $ 179,736 $3,027,451
1977 1,703,364 270,409 1,346,412 99,755 235,752 3,655,692
1978 1,846,370 265,657 1,576,630 104,069 285,311 4,078,037
1979 1,948,751 303,639 1,646,918 103,267 400,317 4,402,892
1980 1,974,874 229,148 2,659,608 108,547 558,006 5,530,183
1981 2,115,674 233,901 3,040,678 129,887 684,794 6,204,934 .,
1982 2,725,738 360,949 2,238,358 145,551 937,761 6,408,357
1983 2,794,763 320,964 2,994,968 131,018 943,014 7,184,727
1984 2,851,420 411,054 3,386,532 145,394 1,181,901 7,976,301 .,
1985 3,146,086 422,606 3,228,902 153,483 1,299,011 8,250,088
Note
(1) Includes General, Special Revenue and Debt Service Funds
136
Table 3
CITY OF FRIDLEY, MINNESOTA
--
CERTIFIED PROPERTY TAX LEVIES AND COLLECTIONS (1)
LAST TEN FISCAL YEARS
Collections Percentage Collection
Of Current of Levy of Prior
— Certified Year's Taxes Collected Years' Taxes Ratio
Fiscal Tax levy During During During of Total
Year For Fiscal Fiscal Fiscal Fiscal Total Collections
Collected Period Period(2) Period Period Collections to Tax Levy
1976 $1,854,061 $ 1,812,739 $ 97.77 $ 32,401 $1,845,140 .9952:1
1977 2,057,083 2,033,169 98.84 39,505 2,072,674 1.0076:1
1978 2,199,318 2,177,318 99.00 48,922 2,226,240 1.0122:1
1979 2,348,124 2,318,648 98.74 41,503 2,360,151 1.0051:1
1980 2,512,176 2,461,402 97.98 46,345 2,507,747 .9982:1
1981 2,767,955 2,502,610 90.41 49,166 2,551,776 .9219:1
— 1982 2,920,626 2,777,691 95.11 21,771 2,799,462 .9585:1
1983 3,151,324 3,086,799 97.95 54,674 3,141,473 .9969:1
1984 3,152,952 3,049,773 96.72 45,490 3,095,263 .9817:1
1985 3,178,325 3,072,588 96.67 76,894 3,149,482 .9909:1
Note
(1) Includes General Fund, Capital Improvement Fund and Debt Service Fund
(2) Includes Homestead Credit
137
CITY OF FRIDLEY, MINNESOTA
ASSESSED AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY
LAST TEN FISCAL YEARS -
Fiscal Year Payable 1976 1977 1978 1979
Assessment Year 1975 1976 1977 1978
Population, fiscal year 31,570 31,940 33,450 32,644
Real property: _
Estimated market value $367,264,013 $405,285,288 $456,038,596 $474,610,022
Assessor's limited market value $327,232,236 $363,541,172 $408,865,261 $458,973,683
Assessed value -
Homestead $ 17,644,329 $ 19,607,606 $ 20,453,732 $ 21,633,558
Excess and non-homestead 105,665,396 117,424,505 124,640,289 134,204,943
Less area wide net allocation (4,541,034) (4,812,211) (6,271,738) (7,376,217) ""
Less tax-increment value )
Assessed value (taxable) $118,768,691 $132,219,900 $138,822,283 $148,462,284 --
Personal property:
Estimated market value $ 18,073,064 $ 18,167,447 $ 19,340,803 $ 17,424,500
Assessor's limited market value $ 16,103,100 $ 16,296,200 $ 17,348,700 $ N/A (4)
Assessed value (taxable) $ 6,924,333 $ 7,007,366 $ 7,459,941
$ 7,492,535 --
Totals:
Estimated market value $385,337,077 $423,452,735 $475,379,399 $492,034,522
Assessor's limited market value $343,335,336 $379,837,372 $426,213,961 $458,973,683
Assessed value (taxable) $125,693,024 $139,227,266 $146,282,224 $155,954,819
Per market value ratios --
Assessor's limited market value .891:1* .897:1* .897:1* .968:1
Assessed value (taxable) .326:1 .329:1 .308:1 .317:1 --
Per capita valuations
Estimated market value $ 12,206 $ 13,258 $ 14,212 $ 15,073
Assessed value (taxable) $ 3,981 $ 4,359 $ 4,373 $ 4,777
Notes
(1) The Anoka County Auditor's Office determines assessed values on January 2 of each
year pursuant to State Statutes and determines Total Assessed Value (Taxable) . The
Total Assessed Value (Taxable) on January 2, 1984 upon which the 1985 levy was based was
$216,265,535.
138
Table 4
1980 1981 1982 (3) 1983 1984 1985
1979 1980 1981 1982 1983 1984
30,228 30,200 29,920 29,810 29,750 29,440
$555,096,298 $632,523,959 $723,016,622 $776,074,092 $802,180,000 $807,910,500
$522,308,032 $ N/A (2) $ N/A (2) $ N/A (2) $ N/A (2) N/A (2)
$ 24,392,539 $ 59,013,036 $ 65,308,228 $ 94,445,737 $ 94,707,547 $ 91,923,166
141,946,084 121,924,290 142,031,048 126,066,013 129,931,205 132,234,317
(8,858,508) (10,022,598) (9,340,006) (13,120,471) (11,732,970) (11,693,200)
(954,050) (2,708,711) (2,892,948) (3,951,300) (2,765,895) (5,458,497)
$156,526,065 $168,206,017 $195,106,322 $203,439,979 $210,139,887 $207,005,786
$ 17,899,900 $ 18,731,800 $ 19,328,400 $ 19,741,300 $ 21,263,600 $ 21,534,300
$ N/A (4) $ N/A (4) $ N/A (4) $ N/A (4) $ N/A (4) N/A (4)
$ 7,696,957 $ 8,054,674 $ 8,311,212 $ 8,488,759 $ 9,143,348 $ 9,259,749
$572,996,198 $651,255,759 $742,345,022 $795,815,392 $823,443,600 $829,444,800
$522,308,032 $ N/A (2) $ N/A (2) $ N/A (2) $ N/A (2) N/A (2)
$164,223,022 $176,260,691 $203,417,534 $211,928,738 $219,283,235 $216,265,535
.943:1 N/A (2) N/A (2) N/A (2) N/A (2) N/A (2)
— .287:1 .271:1 .274:1 .266:1 .266:1 .261:1
$ 18,956 $ 21,565 $ 24,811 $ 26,696 $ 27,679 $ 28,174
$ 5,433 $ 5,836 $ 6,799 $ 7,109 $ 7,371 $ 7,346
(2) In 1980, Limited Market Value was omitted as a consideration in determining
taxable value.
(3) Real property estimated market value includes $8 , 174, 200 of new value from
railroad operating property brought onto the tax roles.
(4) Beginning in Fiscal Year Payable 1979 , the Assessor's value for Assessment
Year 1978 was discontinued and is no longer available.
*Source - State of Minnesota Department of Revenue
139
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF VALUATIONS AND LEVIES BY CLASSES OF PROPERTY
DECEMBER 31, 1985
Assessed
Valuation Assessed --
Before Valuation Assessed
Contribution Contribution Value
Class of to Metro Tax to Metro Tax Received from
Property Pool Pool Metro Tax Pool
Commercial $ 35,263,115 $ (9,845,696)
Industrial 63,148,384 (17,006,203)
F. M. C. #85 4,467,356 (1,521,608) --
Gas 1,237,798 (447,532)
Electric 3,554,595 (865,228) .,
Public utilities* 460,480 (149,177)
Vacant land, residential 1,293,960
Apartments 22,548,588 ,^
Residential 101,442,956
Distribution (1) $18,142,244
Commercial $233,417,232 $(29,835,444) $18,142,244
--Notes
*Real Estate and Machinery
(1) This represents the "assessed value" distributed to Fridley from
the metro tax pool.
The assessed value for the first six classes of property shown above has --
been reduced for local taxable value to 87 . 22% of the actual assessed
value. This taxable value is multiplied by the applicable local mill
rates. The remaining 12 . 78% of assessed value is multiplied by the
Metro Mill Rate of 108.743 mills. This money goes into the Metro Pool. .,
The City of Fridley received $260,160 from this pool in 1985.
140
Table 5
Assessed
Valuation Dollars of
Allocated to Adjusted Percent Certified
Tax Increment Assessed of Total City Tax
Financing Value City Tax Levy
$ (513,099) $ 24,904,320 11.52 $ 366,143
46,142,181 21.34 678,255
2,945,748 1.36 43,225
790,266 0.37 11,760
2,689,367 1.24 39,411
311,303 0.14 4,450
(43,668) 1,250,292 0.58 18,434
(4,803,477) 17,745,111 8.21 260,940
(98,253) 101,344,703 46.86 1,489,363
18,142,244 8.38 266,344
$(5,458,497) $216,265,535 100.00 $3,178,325
The tax shown for Residential is the total amount
received by the City . Owners of Homestead
Residential properties do not pay this full amount.
The State pays up to $650 per homestead in credit.
An additional refund may be received by the taxpayer
from the State depending on income , age and amount
of real estate tax for their homestead property.
141
CITY OF FRIDLEY, MINNESOTA
SIGNIFICANT MINNESOTA TAX POLICIES
DECEMBER 31, 1985
GENERAL
All non-exempt property in Minnesota is subject to taxation by local taxing
districts. The tax levied on a property is determined by multiplying its
assessed value by the tax rate. The tax rate (mills) is determined by the
County Auditor, dividing each tax levy by the assessed valuation (taxable
value) .
Properties are physically reviewed by assessors at least once every four --
years.
The Minnesota Department of Revenue analyzes sales of properties annually, _
comparing sale prices with the Local Assessors Value. This establishes a
sales ratio. The sales ratio is also used in determining municipal and school
district state aids.
The Assessors Market Value is multiplied by the appropriate percentage to
arrive at assessed value. This percentage varies by class of property.
Residential homestead property. Part of the market value said to be
"homestead" ($31 ,000 for taxes due in 1985) is assessed at 17% , the next
31,000 assessed at 19% , and the balance at 30% . The assessed value of a
homestead residence with a market value of $60,000 would be $10,780 for taxes
collectible in 1985 (see "Homestead Credit" note below) .
Residential non-homestead property of 1-2-or-3 units is assessed at 28% of its
market value . The assessed value of a non-homestead residence (rental
property) with a MV of $50,000 is $14,000. Apartments of 4 units or more are
assessed at 34% ($50,000 value x 34% _ $17,000) . _
Industrial/commercial/utility property is assessed at 28% of the first $60,000
of estimated market value, and 43% of balance. Market value of utilities is
computed by the Minnesota Department of Revenue.
HOMESTEAD CREDIT Homestead taxes are reduced by a 54% credit (maximum $650) .
This credit is subtracted on the tax statement, and the taxpayer pays only the _,
net amount; homestead credits are reimbursed by the State to the taxing
districts in proportion to their levies, thus relieving the property tax
burden.
Property tax refund. Further residential property tax credits are gauged by
percentages of the net property tax to household income : To the extent a
homeowners income (1% for lower income groups , up to 4% for incomes of
$40,000) homeowners or renters may receive State credits up to $1 , 775
(combined homestead and income-adjusted credits) .
142
CITY OF FRIDLEY, MINNESOTA
PROPERTY TAX RATES PER $1,000 OF ASSESSED VALUE AND CALCULATED TAX LEVIES
ALL OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Property Tax Rates --
School School School School
District District District District ._
Fiscal City No. 11 No. 13 No. 14 No. 16* County
Year (Mills) (Mills) (Mills) (Mills) (Mills) (Mills)
1976 14.76 55.27 49.16 55.18 61.60 22.16
1977 14.78 58.40 47.26 54.65 63.62 22.21
1978 15.05 55.84 46.53 54.26 61.68 24.40
1979 15.06 47.71 45.04 47.17 62.25 24.29
1980 15.31 43.21 46.73 45.08 61.83 25.84
1981 15.72 38.00 41.48 41.12 51.08 27.91
1982 14.278 46.847 48.266 46.365 65.542 26.113 ._
1983 14.908 45.474 50.156 55.679 62.837 26.594
1984 14.340 55.225 56.227 60.332 63.739 26.088
1985 14.654 52.830 50.487 59.675 60.914 27.017
*Vocational/Technical District No. 916 included in District No. 16 beginning in 1975.
**No Water Shed Special District in School District No. 11. --
Calculated Tax Levies
School School School School
Fiscal District District District District
Year City No. 11 No. 13 No. 14 No. 16* County
1976 1,855,229 300,800 1,403,823 3,537,777 1,698,993 2,785,357
1977 2,057,083 360,242 1,499,855 3,863,402 1,948,613 3,092,238
1978 2,199,318 355,565 1,568,135 3,987,358 2,017,736 3,569,286
1979 2,348,124 330,743 1,634,858 3,668,695 2,204,204 3,788,253
1980 2,512,176 319,712 1,786,183 3,606,461 2,395,401 4,235,650
1981 2,768,111 296,393 1,795,295 3,493,129 2,144,854 4,904,234
1982 2,920,793 447,988 2,383,069 4,412,574 3,130,401 5,332,248
1983 3,151,553 461,623 2,597,543 5,576,373 3,052,396 5,630,016
1984 3,153,251 563,791 2,960,066 6,228,287 3,310,710 5,728,438
1985 3,163,459 536,388 2,650,406 6,152,690 3,122,134 5,825,992
*Vocational/Technical District #916 included in District No. 16 beginning in 1975.
144
Table 6
Totals
Total School School School School
— Special District District District District
Districts No. 11** No. 13 No. 14 No. 16*
(Mills) (Mills) (Mills) (Mills) (Mills)
3.23 95.42 89.31 95.33 101.75
3.43 98.82 87.68 95.07 104.04
3.14 98.43 89.12 96.85 104.27
— 3.35 90.41 87.74 89.87 104.95
3.60 87.44 91.48 89.83 106.58
4.36 85.54 89.47 89.11 99.07
4.057 90.864 92.714 90.813 109.990
4.649 91.170 96.307 101.830 108.988
4.916 100.336 101.571 105.676 109.083
5.099 99.480 97.257 106.445 107.684
Net
Total Total Yearly Contribution Tax Total
Special All Local Percentage To Metro Increment Tax
Districts Tax Levies Increase Tax Pool Districts Levies
380,806 11,962,785 5.08% 11,962,785
454,078 13,275,511 10.97% 13,275,511
,_ 426,450 14,123,848 6.39% 14,123,848
470,367 14,445,244 2.28% 922,702 15,367,946
542,080 15,397,663 6.59% 1,083,986 85,221 16,566,870
718,810 16,120,826 4.70% 1,113,318 193,763 17,427,907
779,684 19,406,757 20.38% 925,052 304,517 20,636,326
924,841 21,394,345 10.24% 1,402,913 340,539 23,137,797
1,044,451 22,988,994 7.45% 1,209,389 311,160 24,509,543
... 1,073,929 22,524,998 2.02% 1,343,511 573,946 24,442,455
145
Table 7
CITY OF FRIDLEY, MINNESOTA
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS _,
LAST TEN FISCAL YEARS
Total
Collec- Delin- Collec- Outstand- '^
Current Current tions to quent tions to ing and
Assess- Assess- Amount Assess- Current Delinquent
Fiscal ments ments Due ments Total Levy Assess- ,_
Year Due Collected (Percent) Collected Collected (Percent) ments
1976 $942,965 $ 767,498 81.39 $ 223,843 $ 991,341 105.13 $ 706,413
1977 918,918 801,584 87.23 168,821 970,405 105.60 655,073
1978 777,077 699,145 89.98 288,525 987,670 127.11 439,385 --
1979 678,501 606,763 89.43 134,352 741,115 109.23 379,149
1980 699,330 628,753 89.91 95,451 724,204 103.56 404,012
1981 785,128 755,588 96.24 87,206 842,794 107.34 347,975
1982 946,330 780,838 82.51 65,666 846,504 89.45 432,530
1983 845,916 739,977 87.48 99,458 839,435 99.23 429,947 ._
1984 811,722 710,323 87.51 144,614 854,937 105.32 371,951
1985 893,674 802,910 89.84 133,182 936,092 104.75 344,254
146
CITY OF FRIDLEY, MINNESOTA
HISTORY OF CERTIFIED TAX LEVIES AND ACTUAL MILL RATES
LAST TEN FISCAL YEARS
1976 1977 1978 1979
Certified tax levies .,
General Fund $1,769,965 $1,974,563 $2,114,917 $2,264,856
P.E.R.A. Fund
Fire Relief Association Fund
Police Pension Association Fund .,
General Debt Service Funds 37,500 36,600 41,000 39,900
Capital Improvement Fund 46,596 45,920 43,401 43,368
Agency Fund --
Total $1,854,061 $2,057,083 $2,199,318 $2,348,124
Actual mill rate
General Fund 14.09 14.18 14.47 14.52
P.E.R.A. Fund _
Fire Relief Association Fund
Police Pension Association Fund
General Debt Service Funds .30 .27 .28 .26
Capital Improvement Fund .37 .33 .30 .28
Agency Fund
Total 14.76 14.78 15.05 15.06 --
Notes --
(1) Property values include net amount allocated pursuant to Laws of
1971, Extra Session, Chapter 23, from Area-Wide "Pool" .
Beginning with taxes collectable in 1975, the value on which the City of Fridley's
mill rate is calculated, is not the City's assessed value but a taxable value based
on the City of Fridley's assessed value and the net addition or reduction from
the Metropolitan Tax Pool.
148
Table 8
1980 1981 1982 1983 1984 1985
$2,428,376 $2,684,615 $2,838,504 $3,070,254 $3,071,882 $3,083,270
38,800 38,570 37,352 36,300 36,300 35,175
45,000 44,770 44,770 44,770 44,770 44,982
— 14,898
$2,512,176 $2,767,955 $2,920,626 $3,151,324 $3,152,952 $3,178,325
14.795 15.248 13.877 14.525 13.970 14.283
.274 .220 .183 .172 .166 .163
.237 .254 .218 .211 .204 .208
.240
— 15.306 15.722 14.278 14.908 14.340 14.894
149
CITY OF FRIDLEY, MINNESOTA
RATIO OF NET GENERAL BONDED DEBT
TO ASSESSED VALUES AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
Deduct
Total City Debt Special
Assessed Service Fund Assessment, _
Fiscal Value Gross Monies Revenue and
Year Population (Taxable) Bonded Debt Available HRA Bonds
1976 31,570 $125,693,024 $ 8,210,000 $46,709 $ 7,900,000
1977 31,940 139,227,266 6,775,000 50,815 6,490,000
1978 33,450 146,282,224 6,385,000 60,071 6,125,000
1979 32,664 155,954,819 6,545,000 64,383 6,315,000
1980 30,228 164,223,022 6,105,000 69,480 5,905,000
1981 30,200 176,260,691 8,954,000 76,953 8,784,000 —
1982 29,920 203,417,534 9,160,000 82,255 9,020,000
1983 29,810 211,928,738 8,285,000 84,240 8,180,000
1984 29,750 219,283,235 7,470,000 86,709 7,400,000
1985 29,440 216,265,535 22,125,000 86,117 22,090,000
150
Table 9
Percent of
Net Bonded
Debt to
Total
Assessed Net General
Net General Value Bonded Debt
Bonded Debt (Taxable) Per Capita
$ 263,291 .21% $ 8.34
234,185 .17% 7.33
199,929 .14% 5.98
165,617 .11% 5.07
130,520 .08% 4.32
93,047 .05% 3.08
57,745 .03% 1.93
20,760 .01% .70
-0- - -
-0- - -
151
Table 10
CITY OF FRIDLEY, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
DECEMBER 31, 1985 --
Assessed Value $216,265,535
(A) Debt Limit 7.33% of Assessed Value $15,852,264
Amount of Debt Applicable to Debt Limit: ...
Total Bonded Debt $22,125,000
(B) Deductions:
Debt Service Fund fund balance $ 86,117
Tax Increment Redevelopment Bonds 11,550,000
Special Assessment Bonds 6,350,000 ._
Water Revenue and Improvement Bonds 120,000
Tax Increment Revenue Bonds 4,070,000 22,176,117
Total Amount of Debt Applicable to Debt Limit -0-
Legal Debt Margin $15,852,264
Notes
(A) M.S.A. Section 475.53 (see following page)
(B) M.S.A. Section 475.51 (see following page)
152
CITY OF FRIDLEY, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED)
YEAR ENDED DECEMBER 31, 1985
Note (A) :
M.S.A. Section 475.53 et seq. Limit on Net Debt
"Subdivision 1. Generally, except as otherwise provided in section 475.51,
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 7 . 33 percent of the
assessed value. "
Note (B) :
M.S.A. Section 475.51 Definitions
"Subdivision 4. "Net Debt" means the amount remaining after deduction 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
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 124.43.
(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) 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. "
153
Table 11
—
CITY OF FRIDLEY, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING
BONDED DEBT AND COMPARATIVE DEBT RATIOS
DECEMBER 31, 1985
% of
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 $ 22,125,000 $ 5,743,889 $ 16,381,111 100.00 $16,381,111
Overlapping debt: --
School Districts
No. 11 $ 11,880,000 $ 2,363,633 $ 9,516,367 1.60 $ 152,262
No. 13 1,090,000 795,427 294,573 32.89 96,885 —
No. 14 1,050,000 930,393 119,607 100.00 119,607
No. 16 9,922,309 3,468,742 6,453,567 41.14 2,654,997
Metro Transit 26,800,000 5,617,000 21,183,000 1.55 328,337 —
Metro Council 270,508,000 53,333,232 217,174,768 1.43 3,105,599
Anoka County 9,805,000 228,718 9,576,282 20.20 1,934,409
Vocational/Technical
District No. 916 3,105,000 355,571 2,749,429 2.27 62,412
Overlapping debt 334,160,309 67,092,716 267,067,593 8,454,508
Total direct and
overlapping debt $356,285,309 $72,836,605 $283,448,704 $24,835,619
154
Table 12
CITY OF FRIDLEY, MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR GENERAL BONDED DEBT TO TOTAL GENERAL
GOVERNMENT EXPENDITURES
LAST TEN FISCAL YEARS
Ratio of Debt
Total Total Service to
Fiscal Debt General General
Year Principal Interest Service Expenditures Expenditures
1976 $ 25,000 $ 11,073 $ 36,073 $ 3,281,818 .0110:1
1977 25,000 10,247 35,247 3,601,933 .0098:1
1978 25,000 9,422 34,422 3,971,816 .0087:1
1979 30,000 8,500 38,500 4,280,363 .0090:1
1980 42,725 10,844 53,569 4,488,799 .0119:1
1981 43,743 8,802 52,545 5,428,872 .0097:1
1982 44,845 187,948 232,793 7,193,387 .0324:1
1983 35,000 290,707 325,707 6,204,001 .0525:1
1984 85,000 301,140 386,140 6,688,262 .0577:1
1985 120,000 234,029 354,029 12,354,397 .0287:1
155
Table 13
CITY OF FRIDLEY, MINNESOTA
REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
Net
Operating
Revenue _,
Direct Direct Available
Fiscal Operating Operating For Debt Debt Service Requirements
Year Revenue Expenses Service Principal Interest Total Coverage
1976 $1,286,963 $1,108,130 $ 178,833 $ 96,607 $ 42,660 $139,267 1.28
1977 1,276,196 1,139,152 137,044 96,607 35,040 131,647 1.04 --
1978 1,404,459 1,299,988 104,471 101,724 30,486 132,210 0.79
1979 1,394,580 1,237,504 157,076 101,724 25,781 127,505 1.23
1980 1,477,709 1,376,970 100,739 106,964 20,957 127,921 0.79
1981 1,560,081 1,681,670 (121,589) 107,750 16,065 123,815 -
1982 1,753,918 1,767,818 (13,900) 97,500 11,545 109,045 -
1983 1,928,973 1,850,966 78,007 50,000 8,659 58,659 1.33
1984 2,401,206 2,043,653 357,553 50,000 6,907 56,907 6.28 '-
1985 2,296,415 2,253,164 43,251 50,000 5,152 55,152 .78
156
Table 14
CITY OF FRIDLEY, MINNESOTA
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Annual
Average
Fiscal Per Capita Median School Unemployment
Year Population (1) Income (3) Age (4) Enrollment (3) Rate (5) (6)
1976 31,570 6,193 25.1 8,339 5.1
.— 1977 31,940 6,721 25.4 7,750 4.0
1978 33,450 6,980 25.9 7,119 2.7
1979 32,664 7,239 26.2 6,666 2.8
1980 30,228 (2) 8,654 (2) 27.4 (2) 6,331 4.4 (2)
1981 30,200 8,700 27.7 (3) 5,915 4.7
1982 29,920 8,750 28.0 (3) 5,595 6.6
1983 29,810 9,188 28.3 5,238 7.4
1984 29,750 9,647 28.6 5,007 5.0
1985 29,440 10,129 28.9 4,833 4.9
Sources:
(1) Estimated by Metropolitan Council
(2) Current Population Report - Bureau of the Census
(3) Estimated by the City of Fridley Planning Department
(4) Sales Market Management Survey of Buying Power (Anoka County)
(5) Minnesota Department of Economic Security - Twin Cities Labor Market
_ Information Center
(6) Beginning in 1983, Unemployment Rate as reported is area wide for the
County of Anoka rather than for the City of Fridley only
157
Table 15
CITY OF FRIDLEY, MINNESOTA
CONSTRUCTION, BANK DEPOSITS AND PROPERTY VALUE
LAST TEN FISCAL YEARS
Commercial Residential
Construction Construction Estimated Market Value -�
Number Number Bank (1)
Fiscal of of Deposits Taxable Non-
Year Units Value Units Value (Thousands) Property Taxable (2) Total
1976 54 $ 6,303,847 442 $6,890,745 $ 13,898 $385,337,077 $ 63,489,810 $448,826,887
1977 58 5,596,312 458 7,755,824 16,585 423,452,735 63,489,810 486,942,545 -'
1978 51 5,247,268 385 4,673,528 18,033 475,379,399 63,489,810 538,869,209
1979 47 7,755,397 404 4,107,660 17,885 492,034,522 63,489,810 555,524,332
1980 36 23,922,267 367 2,374,966 18,763 572,996,198 63,489,810 636,486,008
1981 32 4,589,180 348 2,809,033 19,399 651,255,759 109,749,739 761,005,498
1982 60 5,498,098 305 3,012,844 22,875 772,714,552 110,559,039 883,273,591 —
1983 48 8,921,297 348 2,969,417 26,099 795,815,392 109,749,739 905,565,131
1984 67 19,332,432 345 4,388,689 27,917 823,443,600 109,749,739 933,193,339
1985 54 12,729,783 365 5,430,598 24,074 829,444,800 109,749,739 939,194,539
Source:
(1) Fridley State Bank, Annual Financial Statement
(2) Non-taxable property is reevaluated by the county assessors every six years
158
Table 16
CITY OF FRIDLEY, MINNESOTA
PRINCIPAL TAXPAYERS
DECEMBER 31, 1985
Fiscal Year 1985
Percent
1984* of Total
Assessed Assessed
Rank Taxpayer Type of Business Valuation Valuation**
1. Medtronics, Inc. Electro-medical devices $10,798,190 4.63
2. Onan Corporation Portable electric generators 7,412,140 3.18
.— 3. Target Stores Discount store and warehouse 4,864,964 2.08
4. LaMaur, Inc. Cosmetics 3,822,412 1.64
5. Maurice Fillister Georgetown apartments 2,971,770 1.27
6. FMC Corporation Naval ordinance 2,233,923 0.96
7. Land O'Lakes Coop. Warehousing oil and grain products 2,205,457 0.94
_ 8. Carter-Day Air control equipment 2,041,068 0.87
9. Holiday Plus Discount department store 2,015,268 0.86
10. Five Sands Development Meadowrun Apartments 1,841,508 0.79
Total $40,206,700 17.22
Notes
*The 1984 Assessed Value was used to determine the Taxable Value on January 2, 1984,
upon which the 1985 levy was based.
**Before contribution to Metropolitan Tax Pool.
159
CITY OF FRIDLEY, MINNESOTA
INSURANCE COVERAGE
DECEMBER 31, 1985
All risk, direct physical loss coverage
Buildings and contents -�
Blanket real and personal property - 90% co-insurance $ 10,495,459
(except liquor store and stock)
Liquor store 6289 Highway #65 159,938 .�
Personal property (liquor stores) 71,020
Boiler insurance 500,000
Contractor's equipment 546,392
Miscellaneous property 171,000
Signs (neon and city display) 13,818
Miscellaneous small tools 5,000
General liability
Bodily injury
Each occurence 500,000
Aggregate 500,000 --
Property damage
Each occurence 100,000
Aggregate 100,000 -.
Excess liquor liability
Each occurence 500,000
Aggregate 500,000 _
Loss of business income, liquor stores 149,460
Umbrella liability 3,000,000
Automobile liability
Combined single limit
Bodily injury and property damage 500,000
Comprehensive and collision
Passenger vehicles Actual cash value
Other vehicles Actual cash value
Police officers' liability
Combined single limit 500,000
Punitive damages 25,000
Accidental death and dismemberment 10,000
Money and securities, inside and outside premises;
City Hall and Highway #65 liquor store 15,000
Liquor store at 214 Mississippi Street 25,000
Workers' compensation Statutory
Public officials' liability 1,000,000
PRINCIPAL OFFICIALS' BONDS
DECEMBER 31, 1985
Nasim M. Qureshi City Manager $50,000
Shirley A. Haapala City Clerk 1,000
Richard D. Pribyl Treasurer 50,000
HRA 50,000
All employees are covered by a blanket of faithful performance bond of $100,000. ...
160
CITY OF FRIDLEY, MINNESOTA
CITY CAPITAL IMPROVEMENT FINANCING POLICY
_ DECEMBER 31, 1985
The policy of the City of Fridley regarding financing of major capital
improvements is as follows:
Street, Curb and Gutter, Sidewalk and Storm Sewer Improvements
It is the policy of the City to assess 100% of the cost of street surfacing,
curb and gutter improvements and storm sewer improvements against benefited
properties, less aid for construction received from the State of Minnesota.
Properties owned by the City, the school districts , or other tax exempt
organizations are treated in the same manner and assessed at the same rate as
taxable properties.
Water and Sewer Improvements
Water and sewer lateral improvements are 100% assessed against benefited
'— properties. Properties owned by tax exempt organizations are treated the same
as taxable properties. The water and sewer main system has been substantially
assessed against benefited properties. An exception to the above policy has
been the cost of looping certain water system main lines which benefited no
particular properties. This unassessed portion of the improvement cost is
being financed by the Public Utility Fund.
Wells, Reservoirs, Pumping Stations, Etc.
These improvements have been financed from the income of the Public Utility
Fund.
Acquisition of Park Land, Civic Center, Etc.
_ It is the policy of the City to finance small park capital improvements out of
the current General Fund operating budget. It is the policy of the City to
finance major park capital improvements, such as the purchase of large parcels
of land, with general obligation bonds. The City currently has one general
obligation bond issue outstanding. This is for the Civic Center. The balance
outstanding for this issue on December 31, 1985 was $35,000.
_ Other Capital Improvements
It is the policy of the City to finance capital improvements such as fire
trucks and public works equipment, etc . from the current General Fund
operating budget. In order to stop fluctuations in the amount budgeted
annually for such items, the City started a Capital Improvement Fund in 1976.
The total fund balance in this fund on December 31, 1985 was $2,172, 870 . The
purpose of the fund is to finance capital outlay items normally financed
through the General Fund. In 1983, the Capital Improvements Fund made a loan
of $125 , 000 to the Management Information Services Fund to be used for
financing the acquisition of computer hardware.
Revenue Sharing
The General Fund is used as the vehicle for budgeting and expenditure of
Revenue Sharing monies. In 1985, 18% of Revenue Sharing funds were used for
capital outlay items, 29% for other expenses and 53% for personal services.
161
CITY OF FRIDLEY, MINNESOTA
MISCELLANEOUS STATISTICAL INFORMATION
DECEMBER 31, 1985
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 - City Election November 5, 1985
Ward II Registered Voters 5,975
Number of votes cast 349
Percent (%) of registered voters voting 2%
Population
1950 Federal Census 3,796 .,
1960 Federal Census 15,182
1965 Federal Census 24,789
1970 Federal Census 29,233
1971 Estimated by Metropolitan Council 29,636
1972 Estimated by Metropolitan Council 30,240
1973 Estimated by Metropolitan Council 31,143
1974 Estimated by Metropolitan Council 32,542
1975 Estimated by Metropolitan Council 32,486
1976 Estimated by Metropolitan Council 31,570
1977 Estimated by Metropolitan Council 31,940
1978 Estimated by Metropolitan Council 33,450
1979 Estimated by Metropolitan Council 32,664
1980 Federal Census 30,228 -•
1981 Estimated by Metropolitan Council 30,200
1982 Estimated by Metropolitan Council 29,920
1983 Estimated by Metropolitan Council 29,810
1984 Estimated by Metropolitan Council 29,750
1985 Estimated by Metropolitan Council 29,440
Permanent Employees -- As of December 31 Number
1976
1977 129*
1978 148*
1979 141*
1980 122
1981 126
1982 129
1983 123
1984 119
1985 119 --
117
*Includes CETA employees
162
CITY OF FRIDLEY, MINNESOTA
MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED)
DECEMBER 31, 1985
Fire protection
_ Number of stations 1
Volunteer Firefighters 30
Full-time Firefighters 5
Fire rating Class 4
Police protection
Number of stations 1
_ Number of sworn officers 32
Number of street lights 935
Number of traffic signal installations 32
Number of other special signal installations 1
Number of civil defense warning sirens 9
Miles of streets and sidewalks (including State and County)
City streets 123.99
Trunk highways 10.80
County roads 14.56
Sidewalks 10.98
Miles of sewer
_ Storm 38.77
Sanitary 100.49
Miles of water mains 105.90
Municipal water system source
Primary source City of Fridley Water Plant
(13 wells)--Capacity of 15
million gallons per day
Secondary source City of Minneapolis
(Mississippi River)--35
million gallons per day
Number of water connections December 31, 1985 8,089 Connections
Daily average consumption (gallons) 4.4 million gallons
Elevated storage capacity .5 million gallons
Water storage reservoirs 4.5 million gallons
Number of fire hydrants 1,019
Municipal Sewer System
Disposal--through Metropolitan Waste Control
Commission
Number of connections December 31, 1985 8,191
Average daily flow (includes infiltration/inflow) 3.15 million gallons
163
CITY OF FRIDLEY, MINNESOTA
MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED) ...
DECEMBER 31, 1985
Parks and Recreation Areas
Developed 425 Acres
Undeveloped 125 Acres
Total 550 Acres
City Parks Schools Total
Number of: .."
Hockey rinks 9 0 9
General skating rinks 15 0 15
Playgrounds 29 8 37
Swimming beaches 1 0 1
Swimming pools 0 1 1
Picnic grounds 2 0 2 ...
Day camp sites 1 0 1
Baseball diamonds 4 3 7
Softball diamonds 27 11 38
Outdoor basketball courts 21 9 30
Tennis courts 25 19 44
Horseshoe courts 16 0 16
Archery Ranges 1 0 1 ..
Permanent playground buildings 1 0 1
Permanent picnic shelters 7 0 7
Soccer fields 7 2 9
Football fields 8 8 16
164
CITY OF FRIDLEY, MINNESOTA
GENERAL INFORMATION
DECEMBER 31, 1985
Location - Transportation
The City of Fridley, with a total land area of eleven square miles and an
estimated population of 29 ,440, 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 , Burlington Northern Railroad and Minnesota
Transfer Railway. Commuter transportation is available through Metropolitan
Transit Commission facilities. Highways serving Fridley include Interstate
#694 (beltline around the metropolitan area) and State Highways . An
International Airport, located approximately twenty-five miles south of
Fridley, and private business aviation facilities located at the Anoka County
and Crystal Airports , provide air transportation and are operated by the
Metropolitan Airport Commission.
Medical Facilities
Medical facilities in Fridley include Unity Hospital, a 275-bed hospital with
an adjacent clinic (Unity Professional Building) , Fridley Plaza Clinic,
Fridley Convalescent Home, the Fridley Medical Center, and Lynwood Manor
nursing home.
Education
Fridley is served by four school districts , a major portion of the City is
located within Fridley Independent School District No. 14. The Fridley School
District operates two elementary schools , a junior high and senior high
school, employing 110 certified personnel in the education of about 2 , 803
students. Grace Parochial High School has, an enrollment of 1,005. Portions of
the Columbia Heights School District (13) , the Spring Lake Park School
District (16) and Anoka/Hennepin School District (11) also lie within the City
of Fridley. Those districts have an enrollment of 2 ,040 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.
165
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CITY OF FRIDLEY, MINNESOTA
GENERAL INFORMATION (CONTINUED)
DECEMBER 31, 1985
Larger Employers
Larger employers in the City of Fridley include:
Employer Product or Service Employees
FMC Corporation Pumps and naval ordinance 3,280
Onan Corporation Portable generators, electronic 1,575
equipment
Medtronics, Inc. Electro-medical devices and hdqtrs. 1,549 -•
Burlington Northern Railroad Northtown Yard 1,015
Target Stores, Warehouse Discount department store 1,000
Unity Hospital Medical services 700
Park Construction Commercial Construction 490
Kurt Manufacturing Machine parts 450
Minco Products, Inc. Electronic devices 438
LaMaur, Inc. Cosmetics 410
Holiday Plus Discount department store 330
Totino's Finer Foods Frozen foods 275
Independent School District #14 Fridley School District 236 �,
Carter-Day Company Air control equipment 230
Safetran Systems Corporation Railroad accessories 222
Webb Printing (under const. ) Printing TV Guide 180
Barry Blower Marly Corporation Air moving devices 175 —
Strite-Anderson Manufacturing Aluminum die castings 150
Longview Fiber Company Packaging supplies 136
City of Fridley Governmental Entity 117 0...1
Dealers Manufacturing Company Remanufacturing auto parts 110
Land O'Lakes Cooperatives Warehousing and oil blending plant 110
166 -