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1982 CAFR __i I_N .............. ............. IIII IIIIIi_1 ............. IIIII__I..IIIII ' ........................... ..."--1117_...7711." CITY O F FR 1 D L E Y STATE OF MINNESOV_ 414 \71"117: r- �< 1 I^^1I1``{{//((//��, ''' x cnoz Arn_ IL _ RE o nL_J FOR THE YEAR ENDED DECEMBER 31, 1982 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL. FINANCIAL REPORT DECEMBER 31, 1982 Prepared by: Department of Finance Sidney C. Inman Director of Central Services Richard. D. Pribyl Finance Officer CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT TEAR ENDED DECEMBER 31, 1982 _. TABLE OF CONTENTS INTRODUCTORY SECTION EXHIBIT PAGE 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 Accountant's Opinion 25 Combined Financial Statements - Overview ("Lifetable" 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, Expenditures and Changes in Retained Earnings - All Proprietory Fund Types A-4 36 Combined Statement of Changes in Financial Position - All Proprietory Fund Types A-5 37 Notes to Financial Statements 38 Financial Statements of Individual Funds: General Fund: Comparative Balance Sheet B-1 57 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual B-2 58 Statement of Revenues and Other Financing Sources - Budget and Actual B-3 59 Statement of Expenditures and Other Financing Uses - Budget and Actual B-4 61 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT r, YEAR ENDED DECEMBER 31, 1982 TABLE OF CONTENTS (CONTINUED) EXHIBIT PAGE Special Revenue Funds: Combining Balance Sheet C-1 66 Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 68 Municipal State Aid Fund: Comparative Balance Sheet C-3 70 ., Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual C-4 71 Revenue Sharing Fund: Comparative Balance Sheet C-5 72 -, Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual C-6 73 Cable TV Fund: Comparative Balance Sheet C-7 74 -- Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual C-8 75 _. Home Ownership Fund: Comparative Balance Sheet C-9 76 ... Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual C-10 77 -^ Housing and Redevelopment Authority Fund: Comparative Balance Sheet C-11 78 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual C-12 79 Debt Service Funds: Combining Balance Sheet D-1 81 Combining Statement of Revenues, Expenditures and Changes in Fund Balances D-2 82 .. CITY OF FRIDLEY, MINNESOTA _ COMPREHENSIVE ANNUAL FINANCIAL REPORT TEAR ENDED DECEMBER 31, 1982 TABLE OF CONTENTS (CONTINUED) EXHIBIT PAGE Capital Project Funds: Combining Balance Sheet E-1 84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances E-2 86 Special Assessment Funds: Combining Balance Sheet F-1 91 Combining Statement of Revenues, Expenditures and Changes in Fund Balances F-2 92 Enterprise Funds: Combining Balance Sheet G-1 93 Combining Statement of Revenues, Expenses and Changes in Retained Earnings G-2 94 Combining Statement of Changes in Financial Position G-3 95 Liquor Fund: Comparative Balance Sheet G-4 96 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings G-5 97 Comparative Statement of Changes in Financial Position G-6 98 Public Utilities Fund: Comparative Balance Sheet G-7 99 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings G-8 100 Comparative Statement of Changes in Financial Position G-9 101 Christenson Building Fund: Comparative Balance Sheet G-10 102 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1982, TABLE OF CONTENTS (CONTINUED) EXHIBIT PAGE Comparative Statement of Revenues, Expenses and Changes in Retained Earnings G-11 103 Comparative Statement of Changes in Financial Position G-12 104 Internal Service Fund: Comparative Balance Sheet H-1 105 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings H-2 106 Comparative Statement of Changes in Financial Position H-3 107 Trust and Agency Fund: Comparative Balance Sheet I-1 109 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance I-2 110 General Fixed Assets: Comparative Schedule of General Fixed Assets - By Sources J-1 111 Schedule of General Fixed Assets - By Function and Activity J-2 112 ,^ Schedule of Changes in General Fixed Assets - By Function and Activity J-3 113 General Long-Term Debt: Comparative Statement of General Long-Term Debt K-1 115 TABLE PAGE STATISTICAL SECTION General Governmental Expenditures by Function - Last Ten Fiscal Years 1 117 General Revenues By Source - Last Ten Fiscal Years 2 118 Property Tax Levies and Collections - Last Ten Fiscal Years 3 119 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1982 TABLE OF CONTENTS (CONTINUED) TABLE PAGE Assessed and Estimated Market Value of All Taxable Property - Last Ten Fiscal Years 4 120 Statement of Valuations and Levies By Classes of Property 5 122 Significant Minnesota Tax Policies 125 Property Tax Rates Per $1,000 of Assessed Value and Tax Levies - All Overlapping Governments - "' Last Ten Fiscal Years 6 126 Special Assessment Levies and Collections - Last Ten Fiscal Years 7 129 History of Tax Levies and Mill Rates - Last Ten Fiscal Years 8 130 Ratio of Net General Bonded Debt to Assessed Values and Net Bonded Debt Per Capita - Last Ten Fiscal ^ Years 9 132 Computation of Legal Debt Margin 10 134 Computation of Direct and Overlapping Bonded Debt and Comparative Debt Ratios 11 136 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Government Expenditures - Last Ten Fiscal Years 12 137 Revenue Bond Coverage - Last Ten Fiscal Years 13 138 Demographic Statistics - Last Ten Fiscal Years 14 139 Construction, Bank Deposits and Property Value - Last Ten Fiscal Years 15 140 Principal Taxpayers 16 141 Insurance Coverage 142 City Capital Improvement Financing Policy 143 Miscellaneous Statistical Information 144 General Information 147 INTRODUCTORY SECTION 4 a CITY OF FRIDLEY, MINNESOTA ELECTED AID APPOINTED OFFICIALS DECEMBER 31, 1982 ELECTED OFFICIALS Term of Office Expires December _ Mayor William J. Nee 1983 Councilmember At Large Robert L. Barnette 1983 Councilmember, Ward I Edward L. Hamernik 1984 Councilmember, Ward II Dennis L. Schneider 1985 Councilmember, Ward III Edward J. Fitzpatrick 1984 Effective January 1983 Mayor William J. Nee 1983 Councilmember At Large Robert L, Barnette 1983 Councilmember, Ward I Edward L. Hamernik 1984 Councilmember, Ward II Dennis L. Schneider 1985 Councilmember, Ward III Edward J. Fitzpatrick 1984 i APPOINTED OFFICIALS City Manager - Nasim M. Qureshi City Attorney - Virgil C. Herrick Prosecuting Attorney - Carl Newquist City Clerk/Treasurer - Sidney C. Inman 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 Parks, Recreation and Natural Resource - Charles A. Boudreau Director of Central Service - Sidney C. Inman Division Heads: City Planner - Jerrold Boardman Finance Officer - Richard D. Pribyl Public Works Superintendent - Ralph S. Volkman Chief Building Official - Darrel G. Clark City Assessor - Mervin J. Herrmann Liquor Stores Manager —Robert L. McGuire 1 r City of Fridley CITY ADMINISTRATIVE CITY MANAGER Personnel Officer/Admin. Asst. Management Analyst City Manager's Secretary Economic Dev. Asst. Clerk Typist PARKS AND PUBLIC WORKS (38) RECREATION (13) Public Works Director Parks and Recreation Director Operations Analyst Parks & Rec. Public Works Secretary Secretary Naturalist/Resource ..., Engineering Div. (3) Code Enforcement Division (4) Coordinator Asst. P.Wks. Director Chief Building Official Interpretive Spec. Engineering Tech. Environmental Officer Recreat"on Supv. Eng. Aide/Admin. Plumbing Inspector Program Supv. Clerk/Secretary Park Foreman (7) Planning Division (3) City Planner Senior Parkkeeper 2 Opr. & Maint. Spec. Associate Planner 3 Opr. & Maint. Persons Clerk/Secretary Public Works Maintenance Division Supt. of Public Works (25) Cl erk1/Secretary Street Foreman (13) Water Foreman (5) Sewer Foreman (5) Sr. Steet Operator Sr. Water Operator 2 Sr. Sewer Operators 3 Heavy Equip. Opr. 2 Opr. & Maint. Spec. 2 Opr. & Maint. Persons Opr. & Maint. Spec. Opr. & Maint. Person 4 Opr. & Maint. Persons 2 Mechanics Opr & Maint. Spec. 2 ORGANIZATIONAL STRUCTURE 1912 • (127) Director Central Services/Clerk Treasurer (22) Finance Officer (9) 1 General 'Accountant Sr. Util Billg Clk Budget Control Asst. Record Spec/Dpt C.Clk Payb/Data Proc Clk Sr. Assess. Clerk Clerk-Purchasing Word Processing Opr. Acctg/Data Proc Clk Receptionist/Lic Clk Acctg/Data Input Clk Cashier PUBLIC SAFETY (42) FIRE (6) Assistant City Manager/ Public Safety Director Fire Chief (C.D.Dir.) Police Secretary Deputy Fire Chief Captain 2 Firefighters Clerk Typist II (C.D.) Deputy P.S.D. Lieutenant 3 Sergeants 3 Corporals 23 Police Officers 1 Neighborhood Serv. Coord. I Crime Prevention Specialist I Police Technician Liquor'Division PropertyITax division 6 Office Assistants Liquor Store Manager (4) Assessor (4) Asst. Liquor Store Mgr. 2 Appraisers Head Liquor Store Clerk Tax Assess. Clerk Liquor Store Clerk POSITIONS DISCONTINUED: Engineering Aide/Inspection Funded through General Fund Janitor Funded through General Fund Human Services Assistant Funded through Federal and State Funds (--)= Number of full time employees 3 CITY OF FRIDLEY 6431 UNIVERSITY AVENUE N.E., FRIDLEY, MINNESOTA 55432 TELEPHONE ( 812)571-3450 June 14, 1983 The Honorable Mayor and City Council City of Fridley Fridley, Minnesota Gentlemen: In accordance with the Charter, we hereby transmit the detailed Annual Financial Report of the City of Fridley for the year ending December 31, 1982. The Report includes an excellent and comprehensive letter from Mr. Sidney C. Inman, Director of Central Services and Mr. Richard D. Pribyl, 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, Nasim M. Qureshi City Manager 5 CITY OF FRIDLEY 6431 UNIVERSITY AVENUE N.E., FRIDLEY, MINNESOTA 55432 TELEPHONE ( 612)571 -3450 June 14, 1983 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, 1982, is submitted herewith: _ The organization, form, and contents of this report were prepared in accordance with the standards prescribed by the Municipal Finance Officers Association of the United States and Canada, the American Institute of Certified Public Acountants, the National Council on Governmental Accounting, and the Minnesota State Auditors Office. The Municipal 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 National Council on Governmental Accounting. The City of Fridley was awarded a certificate of Conformance for its annual financial report for the fiscal year 1981 . It is my belief that the accompanying fiscal year 1982 financial report continues to meet program standards and it will be submitted to the Municipal 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 fund statments, and .— account group statements. Section III is the statistical section which includes the previous year's financial and non-financial data. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation including all disclosures rests with the City. We believe 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. 7 ACCOUNTING SYSTEM AND BDDGETORY CONTROL The accounting system 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 accural 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 WWI 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 included in this comprehensive annual financial report are controlled by or dependent on the City of Fridley. This report also includes the activities of the Fridley Housing and Redevelopment Authority (HRA) which is a separate legal entity but is under the immediate control of the City and its Council. Financial information relating to the Fridley Fire Relief Association and the Fridley Police Relief Association is not presented in this •••• report. Determination of "controlled by or dependent on" is based on criteria developed by the Federal Bureau of the Census. The criteria deal with the existence as an organized entity, governmental character, and substantial autonomy. Based on these criteria, the various funds and account groups, which are all the funds and accounts groups of the City shown in the table of contents, are included in this report. 9 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 Based on trends of the past several years and current projections, there will be a greater reliance on property taxes and user fees and a de-emphasis of intergovernmental revenues (federal and state) as sources for financing of -- City operations. There are additional revenue sources currently being explored, and all current charges for our services are being re-examined for appropriateness. Property tax collections have been fairly stable during the past ten years, (total collections compared with levies have varied from 90.41$ to 99.00$ during this period) which included several recessionary years, therefore the prospect for property tax stability appears favorable. In the area of cost containment, the City has taken several steps to resist inflationary pressures and to conserve energy. The City has been striving to cut the cost of full-time staff by holding positions open for a year or two, —. and trying to restructure those positions into other full-time positions or factoring out some of those responsibilities to part-time employment opportunities. Some of the energy conservation measures initiated include energy audits of all City-owned buildings with implementation of high pay-back conservation items, down-sizing of the City's fleet (auto and trucks) and emphasizing use of diesel engines where practical. The use of our computer has expanded into all departments which should greatly reduce labor costs and -, greatly enhance administration and planning in conjunction with all user departments. The City's basic capital improvements (permanent street paving, water and sewer systems, and park acquisition/development) have all been substantially completed in prior years. This should result in minimal taxes and special assessment requirements on property owners for future years. The City's overall financial stability appears excellent, with continued emphasis on cost containment, including labor management control and reductions where possible. CASH MANAGEMENT All temporary cash surpluses during the year are invested in various securities which State statutes permit. The City's policy is to invest all available monies at competitive interest rates in accordance with the City's over-all fiscal plan coordinated with operating needs and programs projected over the ensuing 12 month period. Investment yields ranged from 7.00$ to 15.60$ during the year. The 1982 earnings were distributed to the following fund types: 10 General $ 236,197 Special Revenue 245,792 Debt Service 129,544 Capital Projects 153,484 Special Assessments 683,304 Enterprise 378,550 Internal Service 56,236 Expendable Trust 2,502 $1,885,609 The following is a summary of earnings for the past three years: Year Earnings 1980 $1,249,913 1981 $1,821,144 1982 $1,885,609 DEBT ADMIIISTRATION Net general bonded debt per capita, and the percentage of the net general debt to assessed value are useful indicators of the City's debt position. Debt statistics for the City as of December 31, 1982 are as follows: Percent of Debt per Amount Assessed Value Capita Net general bonded debt $57,627 .03 1.93 On July 26, 1982, $625,000 of General Obligation Tax Increment Redevelopment Bonds were sold at an interest rate of 8.50% to 10.70%. The issue will be fully retired February 1, 1999 and will be paid for by funds generated from the tax increment district. On July 26, 1982 , $1 ,425,000 of Special Assessment Bonds were sold at an interest rate from 8.50% to 10.70%. The issue will be fully retired February 1 , 1999 and will be paid for by assessments to property owners. On November 1 , 1982 , $600 ,000 of General Obligation Tax Increment Redevelopment Bonds were sold at an interest rate of 6.50% to 9.75%. The issue will be fully retired February 1 , 1999 and will be paid for by funds generated from the tax increment district. During 1982, $2,444,000 worth of bonds were retired, including a temporary Special Assessment issue of $1 ,439,000 which replaced the permanent bond issue. The total bonds outstanding for the City on December 31 , 1982 was $9,160,000. 11 Below is a table of the outstanding bonds: Remaining t ningg Date of Amount Years Interest Issue Outstanding of Issue Rate 1982 $ 625,000 17 8.50 - 10.70% 1982 1,425,000 17 8.50 - 10.70% 1982 600,000 17 6.50 - 9.75% 1981 2,200,000 16 7.10 - 9.00% 1980 1,600,000 13 7.25 - 8.50% -� 1977 655,000 6 3.10 - 4.90% 1976 500,000 7 3.75 - 6.00% 1975 235,000 6 6.00% 1972 675,000 11 3.80 - 5.30% 1967 140,000 5 4.20 - 4.50% 1965 95,000 3 3.20 - 3.50% 1965 140,000 3 3.20 - 3.50% 1965 270,000 5 3.20 - 3.50% $9,160,000 During 1982, the City was notified that Moody's Investor Service had continued a bond rating of Aa1 which the City achieved during 1981 . As of December 31 , 1982, the City had issued $31,650,000 in Industrial Revenue Bonds which are permitted under Minnesota Statutes, Chapter 474. Listed below are the bonds issued: ._ Somanr 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 Ave. Partnership 10/25/82 1 ,500,000 $31,650,000 FISCAL DISPARITIES The commonly referred to "Fiscal Disparity Law" was adoted 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. 12 The Fiscal Disparity Law has had the following impact on the taxable valuations of the City for taxes collectible for years 1982, 1981 , 1980, and 1979: 1982 1981 1980 1979 Taxable values - City Personal property $ 8,311,212 $ 8,054,674 $ 7,696,957 $ 7,492,535 Real estate 207,339,276 180,937,326 166,338,623 155,838,501 Less tax increment project valuations (2,892,948) (2,708,711) (954,050) Subtotal City 212,757,540 186,283,289 173,081,530 163,331,036 Areawide allocation Contribution to "Pool" (20,695,684) (17,377,237) (14,234,755) (11,720,528) Distribution from "Pool" 11,355,678 7,354,639 5,376,247 4,344,311 ... Subtotal Pool (9,340,006) (10,022,598) (8,858,508) (7,376,217) Total Taxable Value $203,417,534 $176,260,691 064,223,022 $155,954,819 TAX INCREMENT DISTRICT The City Council took action on May 7, 1979 to form a Tax Increment District. The Fridley Housing and Redevelopment Authority is responsible for '-` administering the Tax Increment project. The project consists of the planned redevelopment of properties located near the center of the City and near the Fridley Civic Center. The creation of the Tax Increment District has the effect of lowering the assessed valuation of the City that can be used for other purposes by $2,892,948 for taxes collectible in 1982. During 1982 , Columbia Park Properties received $4,000,000 in Industrial Revenue Bonds and now are in the final construction stages of a major medical center in the Civic Center Increment Area. The 73rd Avenue Partnership also has embarked on the construction of a three story office building which is scheduled for completion during 1983 in the same increment area. 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 $5,800, 180, a decrease of $156 ,588 from 1981 . The ._ revenues of the General Fund during 1982 showed the impact that the cuts in intergovernmental revenues had on our City's government. Also, expenditures (including transfers) for the General Fund totaled $5,423,756 , a decrease of $82,686 over the previous year. The fund balance increased by $376,424 and was $3,783,427 at the end of the year. A portion of this fund balance is available 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. 13 The following table shows the beginning-year General Fund Unreserved- Undesignated balances as compared to the adopted budget of the current year. Fund Balance General Beginning of Year Fund Budget Amount % of Budget 1977 $3,581 ,342 $ 834,196 23.9 -" 1978 3,962,664 1,279,792 32.3 1979 4,351 ,005 1,630,478 37.5 1980 5,664,208 2,280,353 40.2 ", 1981 6,101 ,166 378,727 6.2 1982 6,180,388 994,413 16.1 The amount of revenue from various sources and the changes from the previous year are summarized in the following table. Increase 1982 Percent (Decrease) Amount of Total from 1981 General property taxes $2,392,519 41 .2 $ 306,760 License and permits 254,039 4.4 61,692 Intergovernmental revenue 1,958,152 33.8 (625,428) Charges for current services 145,551 2.5 15,664 Fines and forfeits 146,334 2.5 26,906 ^ Interest on investments 236,197 4.1 (75,347) Miscellaneous 138,493 2.4 64,270 Transfers 528,895 9.1 68,895 _, Total revenue $5,800,180 100.0% $ 156,588 General property taxes accounted for 41 .2% of the General Fund revenues and current tax collections were 95.10% of the total tax levy for the year 1982. Changes in levels of expenditures for major functions of the City over the preceding year are shown in the following table: Increase —. 1982 Percent (Decrease) Expenditures by Function Amount of Total from 1981 General government $ 747,176 13.8 $ 27,781 Public safety 1,939,996 35.8 69,920 Civic center 115,893 2.1 (6,516) Public works 1 ,129,875 20.8 (278,914) Parks and recreation 911 ,141 16.8 (84,194) Debt service 16,033 .3 3 Capital outlay 367,609 6.8 110,856 Transfers 196,033 3.6 78,378 $5,423,756 100.0% $ (82,686) 14 The mill rates by purpose for the past two fiscal years is as follows: Purpose 1982 1981 General Fund 13.876 15.248 General Debt Service .183 .220 Capital Improvement .219 .254 14.278 15.722 SPECIAL REVENUE FUNDS Purpose Special Revenue funds are used to account for revenue 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 are 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. These 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 improvements projects. The fund balance at December 31, 1982 was $1,152,580 which was a decrease from the previous year of $39,349. Revenues totaled $196,486 , 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 $157,573. The expenditures from this fund were in the form of transfers to other funds and increased this year by $45,470. 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 1982 was $196,355 which was a decrease from 1981 of $15,719. Revenue Sharing funds are transferred from the Revenue Sharing Fund to the General Fund where the detailed amounts are budgeted. During 1982, transfers of these types totaled $255,000. The fund balance of December 31 , 1982 was $110,548, which represents a decrease of $34,238 from 1981. 15 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 , 1982 the fund balance totaled $73,154. Hose Ownership Fund A grant of $120,000 was approved in 1979 by HUD for the City of Fridley. The purpose of the grant is to facilitate home ownership for large, low-income families. Revenues during 1982 totaled $374 which were the final revenues for this fund. The objective of this fund has now been completed and it was closed out as of December 31 , 1982. HRA Fund The HRA Fund was established during 1982 to account for the activity of the Fridley Housing and Redevelopment Authority. The main area of redevelopment is occuring in the area of the Fridley Civic Center. The Fridley HRA has established three tax increment areas that are financing the various projects. ._ During 1982, expenditures were in excess of revenues and other financing uses by $490,215, leaving the fund balance at December 31 ,1982 at $1,331,099. GENERAL DEBT SERVICE FUND Purpose .� The General Debt Service Fund accounts for money devoted to the payment of interest and principal on long-term general obligation debt (other than ., Special Assessment Debt Service). This fund is used for the accumulation of monies for payment of general obligation bonds and interest thereon. Property taxes and proceeds from the tax increment areas provide the necessary revenue. During 1982, revenues amounted to 469,881 , of which $28,702 was from property tax collections. The City has four general obligation issues outstanding which are carried in this fund. There is a $500,000 issue for the Civic Center dated May 1 , 1965. Three issues exist that pertain to the developing tax increment redevelopment area, totaling $3,425,000. On December 31 , 1982, $140,000 was outstanding on the Civic Center bond issue and $3,425,000 on the Tax Increment bond issues. The Debt Service Fund balance at December 31 , 1982 was $529,555. 16 — CAPITAL PROJECTS FUNDS Purpose Capital Project Funds receive and disburse monies used for aquisition 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. During 1982 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 the future replacement of the assets that are growing with age. No expenditures have been made from this Fund to date. As of December 31 , 1982 the fund balance was $1,197,517. North Park Fund This fund has been established to account for the special North Park Project. The North Park area was developed by a private non-profit foundation and the City as a nature center. A $27,000 grant was received in 1976 from the State of Minnesota for use of this project. The objective of this fund has now been completed and the residual fund balance of $244 was transferred to the North Park Visitation Center Fund. The North Park Fund was closed out as of December 31, 1982. North Park Visitation Center Fund This fund was set up to account for the revenues and expenditures relating to the construction of a Visitation Center Building in North Park. During 1982 , landscaping and paving activities took place that were necessary to complete PMI the project. During 1982, total expenditures and other financing uses exceeded revenues by $17,456. The fund balance as of December 31 , 1982 was $80,764. Sears Fund This fund was set up to account for the revenues and expenditures relating to the purchase of park land formerly owned by Sears Roebuck. During 1982, the earth work was completed on the park along with street construction and landscaping. During 1982 , $75,000 was received in donations and the fund earned $28,154 on its investments. The fund balance as of December 31 , 1982 was $366,213. University Avenue Bike/Walkway Fund The City will be receiving a participating grant from the State to construct a third bike/walkway that will connect the major parks within the City. The bike/walkway should be completed during 1983, connecting the other two bike/walkways completed in prior years. Revenues this year were in the form of grants from the State, the amount of which was $542. Expenditures for the trail were $542, thus leaving an ending fund balance of $165. 17 ■■. 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 issuing temporary three-year bonds to finance the improvements during the construction period of projects. The temporary bonds usually are in force past the time the special assessment rolls are adopted by the City Council. 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. Special Assessments 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. The combined fund balances increased during 1982 by $942,108. ENTERPRISE FUNDS Purpose Enterprise Funds account for the financing of services to the general public in which all or most of the costs involved is 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. 18 -� Municipal Liquor Fund The Municipal Liquor Fund was established to account for the operation and financing of the City-owned municipal liquor stores. One is located at 6289 Highway 65; the other is located at 6586 University Avenue Northeast. The City owns the land, building and fixtures at the Highway 65 location. The City leases the building at the University Avenue location. The most current lease was negotiated in 1978 for the University Avenue location. Shown below is a summary of liquor store operations for the years 1982 , 1981 , 1980, 1979 and 1978. 1982 1981 1980 1979 1978 Sales $1,714,953 $1,743,846 $1,661,818 $1,461,144 $1,323,462 Gross profit 340,059 344,681 333,245 275,862 260,941 t„ Net profit 168,603 192,975 171 ,285 117,404 119,607 Transfers to General Fund $ 100,000 $ 90,000 $ 85,000 $ 85,000 $ 85,000 '— Retained earnings of the Municipal Liquor Fund were $1,032,212 on December 31, 1982, compared to $963,609 on December 31 , 1981. 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 $270,000 for this bond issue was outstanding on December 31, 1982. 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 $381 ,084 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. 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. The City Council has a policy of not depreciating water and sewer lines paid for by special assessments. The reasoning for this is that Fridley is still a young community. The original water and sewer lines have not been fully paid for by the property owners. To require these same property owners to pay for the lines by special assessments and also via their utility bills would require the same customers to pay for the system twice. 19 The Public Utility Fund has transferred monies to the Special Assessment Debt Service funds to pay principal and interest on some bond issues although there is no legal requirement to do so. As a result, the City considers such transfers as direct charges against retained earnings and not against income. Retained earnings on December 31 , 1982 were $5,036,751 compared to $4,341 ,448 on December 31, 1981. Shown below is a summary of operations of the Public Utility Fund for the years 1982, 1981 , 1980, 1979 and 1978. 1982 1981 1980 1979 1978 Operating income $1,753,918 $1,560,081 $1,477,709 $1,397,400 $1,404,459 Operating expenses 1 ,767,818 1,681 ,670 1,376,970 1,237,212 1,2991988 - Operating income (loss) 4 (13,900)$ (121,589)$ 100,739 ,$ 160,188 $ 104,471 During 1981 , the sewage disposal charge increased drastically compared to prior years. It was necessary in 1982 to increase the sewage charge to property owners to compensate for these higher rates. Christenson Building Fund On September 1 , 1978 the City entered into a lease/option agreement with 0. H. Peterson, Jr. for the property known as the Christenson building. The property consists of 2.66 acres of land, an older shopping center building, a house, and a cement block commercial garage building. The lease ran until July 31, 1979. The lease contains provisions for two one-year extensions. The City exercised the option for both one-year extensions. The lease agreement also provided that the City had the option to purchase the property for -. $275,000. During 1981 , the City did purchase the building for the specified amount. The purpose of the City entering into the above situation with Mr. Peterson was to hold the property together as one parcel pending future HRA development. The City has recently demolished the building and this piece of property was sold to the Fridley HRA and will be developed in the future by that agency. The fund was closed out as of December 31 , 1982. INTERNAL SERVICE FUNDS 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. The City of Fridley has set up an Internal Service Fund to account for all fringe benefits in one area. During 1982 , benefit payments exceeded charges for services by $25,010. The fund balance as of December 31, 1982 was $378,160. TRUST IND 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. 20 '- The Trust and Agency 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, 1982 is $170. GENERAL FIXED ASSETS GROUP OF ACCOUNTS Purpose General Fixed Assets are those fixed assets of a governmental jurisdiction which are not accounted for in an Enterprise Fund. To be classified as a fixed asset in this category, a specific peice 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 GROUP OF ACCOUNTS Purpose General obligation bonds and other forms of long-term debt supported by general revenue 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 Group of Accounts." 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. PENSIONS Employees in the City of Fridley are covered by five pension plans: 1) Fridley Fire Relief Association for Volunteer Firemen. 2) Fridley Police Pension 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 newly-hired Police Officers. 4) The basic Public Employees Pension Plan, which covers certain other City civilian employees. 5) Coordinated Public Employee Pension 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. 21 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. , Certifed Public Accountants is included in this report. CERTIFICATE OF CONFORMANCE - "The Municipal Finance Officers Association of the United States and Canada - (MFOA) 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, 1981. In order to be awarded a Certificate of Conformance, a governmental unit must -- publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable ^ legal requirements. A Certificate of 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 MFOA to determine its eligibility for another certificate." ACKNOWLEDGEMENTS The preparation of the report on a timely basis could not have been - accomplished without the efficient and dedicated services of the Finance and ,_ Central Services staff. A special thanks is extended to Noel Graczyk and Dawn Weigel for their prudent services. 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, -- C. 29;412 -- Sidney C. Inman Richard D. Pribyl Director of Central Services 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, 1981 A Certificate of Conformance in Financial Reporting is presented by the Municipal 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. to Office VA _ E President wpm 476. 0,#‘404 Executive Director 23 FINANCIAL SECTION Oil OMNI • ACCOUNTANT'S OPINION h I � GEORGE M. HANSEN COMPANY, P.A. G NI I-1 C o A Professional Corporation of Certified Public Accountants ACCOUNTANTS' OPINION — The City Council 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, 1982, 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, 1982, 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 after giving retroactive effect to the changes, with which we concur, in the method of accounting for special assessment funds as described in Note 2 of the financial statements. Our examination was made for the purpose of forming an opinion on the combined financial statements taken as a whole. The combining, individual fund, and account • group financial statements and schedules 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. 6°777 — May 19, 1983 175 SOUTH PLAZA BUILDING WAYZATA BOULEVARD AT HIGHWAY 100 MINNEAPOLIS.MINNESOTA 55416 612/546-2566 25 COMBINED - INANCIAL 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, Expenses, 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 AID ACCOUNT GROUPS December 31, 1982 Governmental Fund Types Special Debt Capital Special General Revenue Service Projects Assessment Assets Cash (deficit) $ 13,182 $ (94,743) $(88,875) $ 5,556 $ 44,152 Investments, at cost 3,442,793 2,862,371 700,685 1 ,642,529 6,791 ,368 Receivables (Net of allowance for uncollectable): Accounts 5,616 106,910 Taxes 8,711 207 140 Special Assessments 18,650 3,928,972 Interest 272,388 27,143 Due from other funds 153,556 3,530 -- Due from other governments 32,135 58,820 1 ,123 Inventories, at cost 22,869 Prepaid expenses Long term receivable Restricted assets: Cash Investments, at cost 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 $3,969,900 82,964,031 $612,017 81,649,348 $10:764,492 See Accompanying Notes to Financial Statement 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 1982 1981 $ 75,744 $ 28,001 $ $ $ $ (16,983) $ (165,218) 3,464,647 550,256 15,372 19,470,021 17,705,318 394,411 506,937 389,908 9,058 92,128 3,947,622 4,332,798 299,531 646,448 157,086 17,254 13,311 105,389 1 ,060,478 206,289 229,158 213,192 76,909 76,909 70,279 367,773 367,773 383,235 (20,678) ^" 188,068 188,068 226,113 11,895,961 20,265,510 32,161,471 30,901 ,391 611,810 611,810 184,035 2,953,190 2,953,190 2,222,037 $16,683,113 $578,257 $15,372 $20,265,510 $3,565,000 $61,067,040 $58,258,718 29 CITY OF FRIDLEY, NINNESOTA. -- COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS (Continued) December 31, 1982 Governmental Fund Types -- Special Debt Capital Special General Revenue Service Projects Assessment Liabilities Accounts payable $ 98,090 $ 82,535 $ $ 2,511 $ 775 - Deposits payable 19,270 10,000 102,079 Contracts payable 47,879 86,282 Salaries payable 39,644 Leave payable Deferred revenue 27,361 207 140 3,928,972 - Due to other funds 156,236 Due to other governments 2,108 2,038 Bonds payable 5,325,000 -, Total liabilities 186,473 296,650 207 4,689 9,443,108 Fund Equity - Contributed capital Investment in general fixed assets Retained earnings - Reserved Unreserved Fund balance: Reserved 2,645,087 611,810 1,197,517 996,574 Unreserved Designated 505,400 113,100 Undesignated 632,940 2,554,281 447,142 324,810 - Total retained earnings/ fund balance 3,783,427 2,667,381 611,810 1,644,659 1,321,384 Total fund equity 3,783,427 2,667,381 611,810 1,644,659 1,321.384 Total liabilities and -- fund equity $3,969,900 $2,964,031 $612,017 $1,649,348 $10,764,492 See Accompanying Notes to Financial Statement 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 1982 1981 ▪ $ 119,464 $ $ $ $ $ 303,375 $ 188,816 15,202 146,551 162,054 134,161 • 27,123 6,300 45,944 50,243 172,097 172,097 198,213 3,956,680 4,797,958 850 157,086 74,061 50,856 28,000 83,002 333,374 270,000 3,565,000 9,160,000 8,954,000 447,470 200,097 15,202 3,565,000 14,158,896 14,785,842 10,166,680 10,166,680 10,166,680 20,265,510 20,265,510 19,046,507 378,160 378,160 313,477 6,068,963 6,068,963 5,305,057 5,450,988 3,173,771 618,500 356,000 170 3,959,343 5,111,384 - 6,068,963 378,160 170 16,475,954 14,259,689 16,235,643 378,160 170.. 20,265,510 -0- 46,908 144 43,472,876 06,683,113 $578,257 $15,372 $20,265,510 $3,565,000 $61,067,040 $58,258,718 31 CITY OF FRIDLET, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS Year Ended Deoe=ber 31, 1982 Governmental Fund Types Special Debt General Revenue Service Revenues: Taxes and special assessments $2,392,519 $ $ 333,219 Licenses and permits 254,039 106,910 Intergovernmental revenue 1,958,152 273,088 7,118 Charges for current services 145,551 Fines and forfeitures 146,334 Interest on investments 236,197 245,792 129,544 Miscellaneous 138,493 41 ,401 Total revenues 5,271,285 667,191 469,881 Expenditures: Current General government 747,176 82,258 Public safety 1,939,996 -- Civic center 115,893 Public works 1 ,129,875 192,118 Parks and recreation 911 ,141 Capital projects Debt service 16,033 216,760 Other Capital outlay 367,609 1 ,474,528 Total expenditures 5,227,723 1,748,904 216,760 Excess of revenues over expenditures 43,562 (1,081,713) 2539121 Other financing sources (uses): Bond sales 1 ,211,907 Operating transfers in 528,895 1 ,037,253 Operating transfers out (196,033) (490,835) (1,037,253) Total other financing sources (uses) 332,862 546,418 174,654 Excess of revenues and other financing sources over expenditures and other financing uses 376,424 (535,295) 4279775 "' Fund balance January 1 as previously reported 3,407,003 3,202,676 184,035 -- Adjustment: See note 2 Fund balance January 1 as restated 3,407,003 3,202,676 184,035 Fund Balance Deoember 31 $39783,427 $ 2,6679381 $ 611,810 " See Accompanying Notes to Financial Statements 32 -' Exhibit A-2 _. Fiduciary Fund Type Totals Capital Special Trust and (Memorandum Only) Projects Assessments Agency 1982 1981 $ 34,362 $ 608,215 $ $ 3,368,315 $ 2,945,719 86,006 446,955 233,901 9,073 2,247,431 3,528,060 145,551 129,887 146,334 124,428 153,484 683,304 2,502 1,450,823 1,671 ,108 75,000 393,452 648,346 773,582 271,919 1,770,977 2,502 8,853,755 . 9,406,685 7,271 836,705 719,395 1,939,996 1,870,076 115,893 122,409 1,321,993 1,486,320 •- 911,141 995,335 71,476 682,656 754,132 849,547 396,146 628,939 609,438 18,690 18,690 1 ,842,137 1,206,585 71,476 1,097,492 7,271 8,369,626 7,859,105 200,443 673,485 (4,769) 84,129 1,547,580 1,211,907 2,173,729 244 288,353 1,854,745 2,818,934 (19,254) (19,730) (1,763,105) (2,737,294) (19,010) 268,623 1,303,547 2,255,369 181,433 942,108 (4,769) 1,387,676 3,802,949 1,463,226 5,054,294 4,939 13,316,173 8,778,261 (4,675,018) (4,675,018) (3,940,055) ,.r 1,463,226 379,276 4,939 8,641,155 4,838,206 0,644,659 $ 1,321,384 $ 170 $10,028,831 $ 8,641,155 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, 1982 General Fund Varianoe- Favorable Budget Actual (Unfavorable) Revenues: -, Taxes and special assessments $2,461,426 $2,392,519 $ (68,907) Licenses and permits 267,002 254,039 (12,963) Intergovernmental revenue 2,065,966 1,958,152 (107,814) Charges for current services 133,000 145,551 12,551 j Fines and forfeits 107,000 146,334 39,334 Interest on investments 210,000 236,197 26,197 Miscellaneous 48,000 138,493 90,493 Total revenues 5,292,394 5,271,285 (21,109) Expenditures: Current General government 869,265 747,176 122,089 Public safety 2,118,313 1,939,996 178,317 Civic center 143,994 115,893 28,101 Public works 1,158,596 1,129,875 28,721 Parks and recreation 1,037,964 911,141 126,823 Debt service 16,033 16,033 Reserve for contingency 175,500 175,500 Capital outlay 500,120 367,609 132,511 Total expenditures 6,019,785 5,227,723 792,062 Excess (deficiency) of revenues over expenditures (727,391) 43,562 770,953 Other financing sources (uses): Operating transfers in 490,000 528,895 38,895 Operating transfers out (160,603) (196,033) (35,430) Total other financing sources (uses) 329,39T 332,862 3,465 Excess (deficiency) of revenues and other financing sources -- over expenditures and other financing uses (397,994) 376,424 774,418 Fund balance January 1 3,407,003 3,407,003 Fund Balance December 31 $3,009,009 $3,783,427 $ 7711,1118 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) $ $ $ $ 2,461,426 $ 2,392,519 $ (68,907) 90,000 106,910 16,910 357,002 360,949 3,947 418,074 273,088 (144,986) 2,484,040 2,231,240 (252,800) 133,000 145,551 12,551 107,000 146,334 39,334 170,000 245,792 75,792 380,000 481 ,989 101 ,989 35,000 41 ,401 6,401 83,000 179,894 96,894 713,074 667,191 (45,883) 6,005,468 5,938,476 (66,992) 87,171 82,258 4,913 956,436 829,434 127,002 2,118,313 1,939,996 178,317 143,994 115,893 28,101 191,374 192,118 (744) 1,349,970 1,321,993 27,977 1,037,964 911 ,141 126,823 16,033 16,033 175,500 175,500 1,480,900 1,474,528 6,372 1,981 ,020 1 ,842,137 138,883 1,759,445 1,748,904 10,541 7,779,230 6,976,627 802,603 (1,046,371) (1,081,713) (35,342) (1,773,762) (1,038,151) 735,611 1,057,253 1,037,253 (20,000) 1,547,253 1,566,148 18,895 (581,700) (490,835) 90,865 (742,303) (686,868) 55,435 475,553 546,418 702865 804,950 879,280 74,330 (570,818) (535,295) 35,523 (968,812) (158,871) 809,941 3,202,676 3,202,676 6,609,679 6,609,679 $ 2,631858 $ 2,667,381 $ 35,523 $ 5,640,867 $ 6,450,808 $ 809,941 35 Exhibit A-4 CITY OF FRIDLEY, MINNESOTA COMBINED STATEMENT OF REVENUES, ElPENDITURES AND (RANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES Year Ended December 31, 1982 Proprietary Fund Types Totals Internal (Memorandum Only) Enterprise Service 1982 1981 Sales and cost of sales: Sales $1,714,953 $ $1,714,953 $1,743,846 Cost of sales 1 ,374,894 1,374,894 1 ,399,165 Gross profit 340,059 -0- 340,059 344,681 Operating revenues: Water sales and sewer rents 1,680,304 1,680,304 1,494,168 Rental income 17,731 Other 73,614 73,614 65,913 .. Charges for services 686,643 686,643 790,849 Total operating revenue 1,753,918 686,643 2,440,561 2,368,661 Operating expenses: Personal services 595,848 595,848 512,192 Supplies and other charges 1,331,618 711,653 2,043,271 2,059,308 Depreciation 99,936 99,936 121,580 Total operating expenses 2,027,402 711,653 2,739,055 2,693,080 Operating income (loss) 66,575 (25,010) 41,565 20,262 Nonoperating revenues (expenses): Intergovenrmental revenue 2,116 2,116 302,009 Interest on investments 378,550 56,236 434,786 438,450 Debt service (10,415) (10,415) (14,681) Other 22,686 33,457 56,143 80,521 Land acquisition (274,995) Total non-operating revenues (expenses) 392,937 89,693 482,630 531,304 Income before extraordinary item and operating transfers 459,512 64,683 524,195 551,566 Extraordinary item 396,034 -0- 396,034 -0- Income before operating transfers 855,546 64,683 920,229 551,566 Operating transfers in 8,360 8,360 8,360 Operating transfers out (100,000) (100,000) (90,000) Total operating transfers (91,640) -0- (91,640) (81,640) Net income 763,906 64,683 828,589 469,926 Retained earnings January 1 5,305,057 313,477 5,618,534 5,148,608 Retained earnings December 31 $6,068,963 $378,160 $6,447,123 $5,618,534 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, 1982 Proprietary Fund Tlpea Totals Internal (Memorandum Only) Enterprise Service 1982 1981 Sources of working capital: Operations: ,- Net income for the year $ 763,906 $ 64,683 $ 828,589 $ 469,926 Items not required working capital-depreciation 99,936 99,936 121,580 Working capital provided by operations 863,842 64,683 928,525 591,506 Long term receivable 15,462 15,462 14,819 - Net decrease in restricted assets 17,367 17,367 4,205 Total sources of working capital 896,671 64,683 961,354 610,530 •- Uses of working capital: Acquisition of property and equipment 141 ,013 141 ,013 73,171 Decrease in long term bonds payable 50,000 50,000 85,625 Decrease in deferred revenue 396,034 396,034 52,092 Total uses of working capital 587,047 -0- 587,047 210,888 Net increase in working capital $ 309,624 $ 64,683 $ 374,307 $ 399,642 Elements of net increase (decrease) in working capital: Cash $ 136,605 $165,001 $ 301,606 $ (869,450) Investments 386,311 (98,316) 287,995 1,019,908 Receivables 77,250 (118) 77,132 10,404 -• Due from other funds (14,845) (14,845) (13,743) Due from other governments (284,141) (284,141) 244,539 Inventory 10,449 10,449 7,683 Prepaid expenses 6,630 6,630 6,230 Accounts payable (16,036) (28,000) (44,036) 33,426 Contracts payable 877 877 (877) Salaries payable (1,001) (1,001) (537) Leave payable 26,116 26,116 9,415 Due to other funds (850) (850) Due to other governments 8,375 8,375 (59,231) Bonds payable 11,875 Net increase in working capital $ 309,624 $ 64,683 $ 374,307 $ 399,642 See Accompanying Notes to Financial Statements 37 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1982 1. Summary of Significant Accounting Principles The City of Fridley operates under a "Home Rule Charter" form of government according to applicable State of Minnesota Statutes. The Charter prescribes a Manager-Council form of organization. The City provides the following services: -- general government, public safety, public improvements and planning and zoning. This report includes the financial information relating to all funds and account groups of the City. This report also includes the activites of the Fridley Housing and Redevelopment Authority (HRA) which is a separate legal entity but is under the immediate control of the City and its Council . Financial information relating to the Fridley Fire Relief Association and the Fridley Police Relief Association is not presented in this report. The Associations are independent enitities as authorized by Minnesota Statutes. As independent entities, the Associations maintain their own accounts and funds, and report ■■ their financial affairs separately from the City. The accounting policies of the City of Fridley conform to generally accepted accounting principles as applicable to governments. 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 eight generic fund types and three broad categories as follows: GOVERNMENTAL FUNDS 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 legally 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, 1982 1. Summary of Significant Accounting Principles (Continued) A. Fund Accounting (Continued) GOVERNMENTAL FUNDS (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 Enterprise Funds - Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business OMNI 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 Trust Funds - Trust Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments, and/or other funds. The City's Trust Funds are classified as Expendable Trust Funds and are accounted for in essentially the same manner as governmental funds. B. Measurement Focus The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. 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. 39 CITY OF FRIDLEY, MINNESOTA -. NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1982 1. Summary of Significant Accounting Principles (Continued) B. Measurement Focus (Continued) 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 balace 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 are 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 funds. 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 types operating statements present increases (revenues) and decreases (expenses) in net total assets. 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. 40 IMM imm CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) ,^ DECEMBER 31, 1982 1. Summary of Significant Accounting Principles (Continued) C. Basis of Accounting (Continued) Governmental Funds and Expendable Trust Funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available. Substantially all sources are accrued except interest on special assessments receivable, which is recognized when due. 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. -� 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 resolution. 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. 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 alternatively achieved through general obligation bond indenture provisions. Budgetary control for Capital Projects and Special Assessment Funds is accomplished through the use of project controls. 41 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1982 1. Summary of Significant Accounting Principles (Continued) D. Budgets and Budgetary Accounting (Continued) 8. Budgets for the General and Special Revenue Funds are adopted on a basis -■• consistent with generally accepted accounting principles (GAAP). 9. Budgetary control is maintained at the expenditure category level within each activity. Budgetary control, by departments or divisions, and by category is required by the City Charter. 10. The General Fund budget includes $109,494 of prior year encumbrances which were expended during the year. E. Assets, Liabilities and Fund Equity ^ 1) Cash and Temporary Investments Cash balances from all funds are combined and invested to the extent available in certificates of deposit and U.S. government securities. Earnings from such investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund. Temporary investments are stated at cost which approximates market. Investments are adjusted to market value only when a permanent decline in market value has occurred or when such investments will not be carried to maturity. 2) Inventory F.I.F.O. based inventory is valued at the lower of cost or market based on perpetual inventory systems in the Enterprise Funds. 3) Property Taxes Property taxes are set by the City Council with the levy certified to ._ the County, who acts as collection agent, in October prior to the year collectible. Such taxes constitute a lien on the property on January 1 of the year collectible. Cities in Minnesota operate under a levy limitation law which generally permits an eight (8%) percent increase in taxes levied per capita each year along with certain permitted special levies as set forth in Minnesota Statutes. Levies for bonded indebtedness are not limited by this law. Allowances have been provided for all taxes receivable which were not remitted to the City within sixty (60) days of year end, except when ^ remittances were legally held by the County beyond this date and were measurable. 42 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1982 1. Summary of Significant Accounting Principles (Continued) E. Assets, Liabilities and Fund Equity (Continued) 4) Special Assessments Special assessments are recognized when they become both measurable and available as net current assets. In practice, special assessment ■ principal is recognized as revenue in the year when assessments are due to be collected. ._ 5) Property and Equipment/General Fixed Assets All assets are recorded at historical cost or estimated historical cost, if the original cost is not available. Donated assets are stated at the fair market value on the date donated. Additions to fixed assets for general City purposes, including public domain (infrastructure) fixed assets are recorded as an expenditure of the applicable fund in the year in which the asset is 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 all 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 years Buildings 20 years Office Equipment 5 - 10 years Machinery and Equipment 5 - 10 years Other Improvements 20 years Capital leases are recorded as assets in either the proprietary funds or in the general fixed asset account group, as appropriate. The City Council has a policy of not depreciating water and sewer lines paid for by special assessments. The reasoning for this is that Fridley is still a young community. The original water and sewer lines have not been fully paid for by the property owners. To require these same property owners to pay for the lines by special assessments and also via their utility bills would require the same customers to pay for the system twice. 43 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECIDER 31, 1982 1. Summary of Significant Accounting Principles (Continued) E. Assets, Liabilities and Fund Equity (Continued) 6) Vacation and Sick Leave The Employee Benefits Internal Service Fund reflects the City's accrued liabilities for vacation and other benefits for all City employees, exclusive of accrued sick leave which is not recorded. The estimated potential liability for sick leave benefits is estimated to be $261 ,237 based on one-third (1/3) of the total sick leave accumulation for all City employees as stated in the Personnel Ordinance. This potential liability is covered by the $378,160 Retained Earnings in the Employee Benefits Fund. 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. F. Revenues, Expenditures and Expenses The following transactions are accounted for as described below: General Property Taxes - Revenue is recognized in the year of anticipated collection, with amounts due from the County and received early in the following year set up as receivable (current taxes receivable). Allowances are provided for the full amount of delinquent taxes receivable. This has ^ the full effect of recognizing general property taxes as revenue when cash is received because of the unavailability of the delinquent collections. Principal Portion of Special Assessments - Revenue is recognized in the year the assessment roll is due to be collected. Interest Revenue on Special Assessments Receivable - Interest revenue is recognized in the year of anticipated collection of the current principal installment. Interest Expense on Bonded Indebtedness - Interest expense is recorded as an expenditure when paid in the governmental type 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. Unbilled Sewer and Water Fund Utility Service Receivables - are recorded at year end. 44 Irma - CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1982 1. Summary of Significant Accounting Principles (Continued) G. Comparative Data Comparative total data for the prior year has 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. Certain 1981 amounts have been reclassified to conform to the 1982 presentation. 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 priniciples. Interfund eliminations have not been made in the aggregation of this data. 2. Accounting Change — Special Assessment Fund Accounting The City changed its method of accounting for special assessment revenues and receivables in accordance with NCGA Statement No. 1. Under this method, revenue recognition for special assessments will be identical to that of the other governmental fund revenues which are recognized when they become measurable and available. Previously, special assessment revenues were recognized at the time assessments were adopted. Allowances have now been provided for all delinquent special assessments receivable which were not available as net current assets. Deferred revenues equal to any postponed or deferred assessments have also been recorded. On January 1 , 1982 and 1981 fund balance and related 1981 revenues of the Special Assessment Fund have been restated to reflect this accounting change. The following is a summary of changes to previously reported amounts: — Fund Balance 1981 1/1/82 1/1/81 Revenues Balances as previously reported $ 5,054,294 $ 3,562,225 $2,502,430 Adjustment of special assessment .� revenues and receivables (4,675,018) (3,940,055) (734,963) Balances as restated $ 379,276 $ (377,830) $1,767,467 45 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECIDER 31, 1982 3. Extraordinary Item — Enterprise Funds (Public Utilities Fund) The gain related to the sale of the City's sewer system to the Metropolitan Waste Control Commission (MWCC) had been deferred because of uncertainties surrounding the repayment of this amount. The MWCC, however, has been and will continue to repay this amount by issuing credits against future billings and the uncertainty of collectibility no longer exists. Therefore, the remaining deferred gain of $396,034 as of December 31, 1981 was recognized as income for 1982. Previously, the balance of the gain was recognized on the installment basis and included in income as received. In 1981 , this amounted to $17,356. 4. Special Assessments Receivable "' Special assessments receivable at December 31, 1982 are as follows: Special General Assessment Total Deferred $ 18,650 $3,928,972 $3,947,622 Delinquent 10,022 408,393 418,415 Total 28,672 4,337,365 4,366,037 Less: allowance for uncollectible (10,022) (408,393) $ (418,415) Net $ 18,650 $32928,972 $3,947,622 5. Due From Other Governments General Fund: 1. State of Minnesota a) Section 8 Housing $ 6,639 b) State Aid Maintenance 2,814 2. Metropolitan Council 4,729 3. Anoka County 11 ,835 4. City of Hilltop 6,118 $32,135 Special Revenue Funds: 1. State of Minnesota, Construction Money Expended in 1982 $11,664 2. Federal Government, Revenue Sharing 47,156, #58,820 46 CITY OF FRIDLET, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1982 5. Due From Other Governments (Continued) Capital Projects Funds: 1. Univeristy Avenue Bikeway/Walkway, State Grant $1,123 Enterprise Funds - Public Utilities Fund: 1. Metropolitan Waste Control Commission Current portion $ 13,311 Long-term portion 367,773 .. The receivable in the Public Utilities Enterprise Fund represents: 1. The balance for the City's share of equity in the City's sewer interceptors is $328,040 (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 $39,733, which will be repaid with interest through 1998, is for advances made to the Commission during 1971 and 1972. 6. Changes in General Fixed Assets A summary of changes in general fixed assets are as follows: Balance Balance Jan 1, 1982 Additions Deletions Dec 31, 1982 -� Land $ 1,656,779 $ 314,196 $ 454,822 $ 1,516,153 Buildings 1 ,629,919 121 ,632 132,456 1,619,095 Improvements other than buildings 13,350,278 747,210 68,925 14,028,563 Machinery and equipment 1 ,729,326 426,658 405,167 1,786,817 Construction in progress 680,205 1 ,046,208 411,531 1,314,882 Total 09,046,507 $2,691,904 $1,472,901 $20,265,510 .. Construction in progress is composed of the following: Land $ 380,312 Improvements 934,570 Total $1,314,882 47 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1982 7. Summary of Proprietary Fund Property and Equipment A summary of proprietary fund type property, plant and equipment at December 31, 1982 follows: Public Liquor Utilities Total Land $ 66,961 $ 154,881 $ 221,842 Buildings 130,211 754,608 884,819 Improvements other than buildings 1 ,469 123,909 125,378 -- Machinery and equipment 124,998 2,018,213 2,143,211 Water and sewer lines 10,166,680 10,166,680 Total 323,639 13,218,291 13,541,930 Less: accumulated depreciation (85,545) (1,560,424) 1,645,969 Net $238,094 $11,657,867 $11,895,961 ., 8. Changes in Long-Term Debt The following is a summary of long-term debt transactions of the City of the year ended December 31, 1982: General Special Long-Term Enterprise Assessment "' Debt Funds Funds Total Bonds payable -" at Janaury 1, 1982 $2,370,000 $320,000 $6,264,000 $8,954,000 New bonds issued: General Obligation: Tax Increment Redevelopment Bonds 1,225,000 1,225,000 Special Assessment Bonds 1 ,425,000 1,425,000 ,^ Bonds retired (30,000) (50,000) (2,364,000) 2,444,000 Bonds payable at December 31, 1982 $3,565,000 $270,000 $5,325,000 $9,160,000 Bonds payable at December 31, 1982 are comprised of the following individual issues (in thousands of dollars): 48 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINOED) DECEMBER 31, 1982 8. Changes in Long-Tern Debt (Continued) General Long-Tern Debt: $500,000 Civic Center Bonds of 1965 due in varying annual installments of $15,000 - $35,000 through February 1 , 1987 and $20,000 on the final maturity date, February 1, 1988 interest at 3.20% - 3.50% 140 $2,200,000 General Obligation Tax Increment Redevelopment Bonds of 1981 due in varying annual, installments of $50,000 - $250,000 through February 1, 1999; interest at 7.10% - 9.00% 2,200 $625,000 General Obligation Tax Increment Redevelopment Bonds of 1982 due in varying annual installments of $5,000 - $85,000 through February 1, 1999; interest at 8.50% - 10.70% 625 $600,000 General Obligation Tax Increment Redevelopment Bonds of 1982 due in varying annual installments of $5,000 - $100,000 through February 1, 1999; interest at 6.50% - 9.75% 600 3,565 — 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% 270 Special Assesment Funds: $715,000 Improvement Bonds of 1965 due in annual installments of $25,000 through February 1 , 1985 and $20,000 on the final maturity date, February 1, 1986; interest at 3.20% - 3.50% 95 $1 ,830,000 Improvement Bonds of 1967 due in varying annual installments of $20,000 - $40,000 through Janaury 1 , 1988; interest at 4.20$ - 4.50% 140 $2,135,000 G.O. Special Assessment Bonds of 1972 due in varying annual installments of $50,000 - $150,000 through January 1 , -' 1994; interest at 3.80% - 5.30$ 675 $1 ,220,000 Refunding Bonds of 1967 due in varying annual installments of $10,000 - $95,000 through January 1 , 1989; interest at 6.00% 235 $1 ,550,000 Special Assessment Bonds of 1976 due in varying annual installments of $25,000 - $175,000 through February 1 , 1990; interest at 3.75% - 6.00% 500 $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% 655 49 CITY OF FRIDLE , MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1982 8. Changes in Lone-Term Debt (Continued) Special Assesment Funds (Continued): $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% 1,600 $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% 1,425 5,325 The annual requirements to amortize all debt outstanding as of December 31 , 1982, including interest payments of $4,474,291 , are as follows: Annual Requirements to Amortize Long-Term Debt December 31 , 1982 Tear Ending Civic Center Redevelopment Enterprise Assessment Deoember 31 Bonds Bonds Fund Fund Total 1983 39,288 246,100 58,575 1,175,035 1 ,518,998 1984 38,062 294,325 56,825 994,770 1,383,982 1985 36,837 319,636 55,075 865,975 1 ,277,523 1986 35,613 313,764 53,325 804,764 1,207,466 1987 307,810 51 ,575 753,405 1,112,940 1988 - 1992 1,691,364 2,218,155 3,929,869 1993 - 1997 1,805,156 543,156 2,348,912 1998 - 2001 689,113 165,638 854,751 8149,800 $5,667,268 8295:725 $7,521,498 $13,6311,291 $611 ,810 is available in the Debt Service Fund to service the General -, Obligation Bonds. The General Obligation Tax Increment Financing Bonds are payable by the money generated from the Tax Increment District within the City. There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitaitons and restrictions. Legal Debt Margin - Under applicable State Statutes, the legal debt margin .� is 6.667% of the most recent assessed valuation less certain deductions. At December 31, 1982, the legal debt margin was $14,319,673. 50 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1982 9. Retirement Plans The City is involved in four pension plans, with other agencies being responsible for the administration of each plan. The City is making all pension contributions as required by law. Fridley Polioe Relief Association and Fridley Fire Relief Association - These Associations are independent entities that administer pension plans for 17 and 45 members respectively. The City levies taxes for pension contributions to the Associations when necessary in accordance with State Statutes. The pension levies satisy 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. State law requires an actuarial study every two years. Based on the latest actuarial study for the Police Relief Association as of December 31 , 1982, the actuarial liability exceeded pension fund assets by approximately $1 ,556 ,537. The lastest study for the Firemen's Relief Association as of May 18, 1981 stated that there was an excess of pension fund assets over accrued liabilities of $2,283. Ammi 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 5.5% to 12.0% of its employees' wages, and the rate is determined by the particular plan the employee belongs to. The cost of PERA in 1981 and 1982 was $187,250, and $202,944, respectively. 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 latest PERA -- annual report, the unfunded accrued liability was $382,031 ,130 as of June 30, 1982. 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 1981 contribution rate was 6.65% on $29,700 in wages, and the 1982 contribution rate was 6.70% on $32,400 in wages. The cost of Social Security in 1981 and 1982 was $90,845 and $95,898 respectively. 10. Leases .� The City leases space for Liquor Store No. 4 at the Holly Shopping Center, 6586 University Avenue Northeast. An eight-year lease was entered into on October 30, 1978 which provides for the following payments effective May 1 , 1979: $13,600 per annum for each of the first four lease years $13,192 per annum for each of the fifth throughout eighth years 51 CITY OF FRIDLET, MINNESOTA -- NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1982 10. Leases (Continued) In addition to the above amounts, the City is required to pay $61 each month for the first four years of the lease for lot maintenance and $73 per month during the fifth through the eighth years for lot maintenance. The City will also share a pro rata basis any increase in taxes over the base year of 1978. 11. Interfund Receivables and Payables Interlund Interfund Fund Receivables Payables General Fund $153,556 $ Home Ownership Fund 2,680 Housing and Redevelopment Authority Fund 850 156,236 Public Utility Fund 850 $157,086 $157,086 12. Reserved Fund Balances/Retained Earnings The following reservations have been made of various fund balances/retained earnings at December 31, 1982: Fund Balance General Fund -` Reserved for: Encumbrances $ 345,087 Fixed asset replacement 700,000 Working capital 1,600,000 2,645,087 Debt service Fund Reserved for Debt Service 611,810 Capital Projects Fund Reserved for Fixed Asset Replacement 1,197,517 Special Assessment Fund Reserved for: Encumbrances 121,753 Debt Service 874,821 '- 996,574 Total reservations $5,450,988 Retained Earnings ^' Internal Service Fund Reserved for employee benefits $ 378,160 52 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1982 12. Reserved Fund Balanoes/Retained Earnings (Continued) No reservations have been made in the Enterprise Funds for restricted assets, as there was no excess of restricted assets over the related liabilities. 13. Designated Fund Balance The following designations have been made of various fund balances at December 31, 1982: i General Fund For Subsequent Years Expenditure $505, 400 Special Revenue Municipal state Aid Fund For Subsequent Years Expenditure 21 ,000 Revenue Sharing Fund For Subsequent Years Expenditure 92,100 Total $618,500 i i 53 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1982 14. Segment Information for Enterprise Funds The City maintains operating funds for Liquor and Public Utilities. Segment information for the year ended December 31, 1982 are as follows: Total Enterprise Liquor Utilities Funds Sales (less cost of sales of $1,399,165) $ 340,059 $ -0- $ 340,059 Operating revenues -0- 1,753,918 1,753,918 Operating expenses (259,584) (1,767,818) 2,027,402 Operating 'noose (loss) 80,475 (13,900) 66,575 Nonoperating revenues 88,128 304,809 392,937 Income before extraordinary item and operating transfers 168,603 290,909 459,512 Extraordinary item -0- 396,034 396,034 Inoo■e before operating transfers 168,603 686,943 855,546 -- Operating transfers from (to) other funds (100,000) 8,360 (91 ,640) Net change in retained earnings $ 68,603 $ 695,303 $ 763,906 Depreciation expense included in operating expenses 15,534 84,402 99,936 Property and equipment Additions 43,560 97,453 141 ,013 Deletions 20,915 74,806 95,721 Net working capital 794,118 3,209,723 4,003,841 Bonds and other long-term liabilities payable from operating revenues -0- 270,000 270,000 Total assets 1,136,662 15,546,451 16,683,113 Total equity $1,032,212 $15,203,431 $16,235,643 54 CITY OF FRIDLET, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1982 15. Contingent Liabilities The City participates in a number of federally assisted grant programs, principal of which are the General Revenue Sharing and Land and Water Conservation Programs. These programs are subject to program compliance audits by the grantors or their representatives. The audits of these programs for the year ended December 31 , 1982 have not yet been conducted. Accordingly, the City's compliance with applicable grant requirements will be established at some future date. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time although the City expects such amounts, if any, to be immaterial. r-. The City participates under a joint powers agreement in a data processing consortium. In accordance with the terms of the agreement, if the City were to withdraw prior to January 1 , 1985, the City would be responsible for is proportionate share of capital costs as follows: 1983 $10,882 1984 10,785 1985 15,860 -- Total $37,527 16. Litigation The City had the usual and customary type of miscellaneous claims pending at year-end, mostly of a minor nature and usually all covered by insurance carried for that purpose. At the present time, there is no significant litigation pending not covered by the City's insurance. 55 GENERAL FUND The General Fund was established to account for the revenues and expenditures necessary to carry out basic governmental activities of the City, such as general government, public safety, and public works. Revenues are recognized by source, such as property taxes, licenses and permits, fines and forfeits, charges for services and state-shared taxes. General Fund expenditures are made primarily for current day to day operations and are recorded by functional classifications and by operating departments. This fund accounts for all financial transactions not accounted for in another fund. • Exhibit B-1 CITY OF FRIDLEY, MINNESOTA GENERAL FUND COMPARATIVE BALANCE SHEET December 31, 1982 and 1981 1982 1981 Assets Cash $ 13,182 $ 88,151 Investments, at cost 3,442,793 2,439,489 Receivables: Accounts 5,616 30,386 Taxes Unremitted 8,711 17,532 Delinquent 145,560 274,678 Less: estimated uncollectable (145,560) (274,678) Special assesments Deferred prinicipal 18,650 5,756 Delinquent 10,022 9,332 Less: estimated uncollectable (10,022) (9,332) Interest 272,388 358,034 Due from other funds 153,556 -- Due from other governments 32,135 623,950 Inventories at cost 22,869 17,352 Total assets $3,969,900 $3,580,650 Liabilities and Fund Balance Liabilities: Accounts payable 98,090 73,930 Deposits payable 19,270 16,765 Salaries payable 39,644 44,833 Deferred revenue 27,361 23,289 •. Due to other governments 2,108 14,830 Total liabilities 186,473 173,647 Fund balance: Reserve for encumbrances 345,087 384,590 Reserve for replacement of fixed assets 700,000 700,000 Reserve for working capital 1 ,600,000 1 ,100,000 Unreserved - Designated for subsequent years expenditure 505,400 288,000 Undesignated 632,940 934,413 Total fund balance 3,783,427 3,407,003 Total liabilities and fund balance $3,969,900 $3,580,650 57 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, 1982 With Comparative Actual Amounts for Year Ended December 31, 1981 1982 Variance- Favorable 1981 Budget Actual (Unfavorable) Actual Revenues: Taxes and special assessments $2,461,426 $2,392,519 $ (68,907) $2,085,759 Licenses and permits 267,002 254,039 (12,963) 192,347 Intergovernmental revenue 2,065,966 1 ,958,152 (107,814) 2,583,580 Charges for current services 133,000 145,551 12,551 129,887 Fines and forfeits 107,000 146,334 39,334 119,428 Interest on investments 210,000 236,197 26,197 311,544 ^ Miscellaneous 48,000 138,493 90,493 74,223 Total revenues 5,292,394 5,271,285 (21,109) 5,496,768 Expenditures: Current General government 869,265 747,176 122,089 719,395 Public safety 2,118,313 1 ,939,996 178,317 1 ,870,076 -, Civic center 143,994 115,893 28,101 122,409 Public works 1 ,158,596 1,129,875 28,721 1 ,408,789 Parks and recreation 1 ,037,964 911 ,141 126,823 995,335 Debt service 16,033 16,033 16,030 ' Reserve for contingency 175,500 175,500 Capital outlay 500,120 367,609 132,511 256,753 Total expenditures 6,019,785 5,227,723 792,062 5,388,787 Excess (deficiency) of revenues -. over expenditures (727,391) 43,562 770,953 107,981 Other financing sources (uses): Operating transfers in 490,000 528,895 38,895 460,000 ^' Operating transfers out (160,603) (196,033) (35,430) (117,655) Total other financing sources (uses) 329,397 332,862 3.465 342,345. Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses (397,994) 376,424 774,418 450,326 Fund balance January 1 3,407,003 3,407,003 2,956,677 - Fund balance December 31 $3,009,009 $3,783,427 $ 774,418 $3,407,003 58 "- Exhibit 6-3 CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL Year Ended December 31, 1982 -. With Comparative Actual Amounts for Year Ended December 31, 1981 .. 1982 Variance- Favorable 1981 Budget Actual (Unfavorable) Actual " Taxes: Current ad valorem taxes $2,412,426 $2,359,603 $ (52,823) $2,028,517 Delinquent ad valorem taxes 30,000 19,589 (10,411) 40,791 ▪ Penalties and interest 3,500 8,504 5,004 6,156 Forfeited sale-taxes 10,000 1 ,556 (8,444) 6,990 Special assessments 5,500 3,267 (2,233) 3,305 .. Total taxes 2,461,426 2,392,519 (68,907) 2,085,759 Licenses and permits: Licenses - "" Contractor 19,563 10,371 (9,192) 10,657 Business 124,236 126,118 1,882 89,449 All other 3,706 5,563 1,857 5,474 • Permits 119,497 111 ,987 (7,510) 86,767 Total licenses and permits 267,002 254,039 (12,963) 192,347 • Intergovernmental revenue: Civil defense 12,000 15,435 3,435 6,488 Other federal grants 10,000 21 ,832 11,832 327,103 State maintenance aid 27,000 28,140 1 ,140 27,794 "' Attached machinery aid 19,335 17,058 (2,277) 19,694 Homestead credit 340,000 340,000 603,677 Local government aid 1,502,631 1,325,693 (176,938) 1,406,047 ▪ Other state grants 25,310 25,310 24,865 Police and fire pension 120,000 135,861 15,861 123,905 Local grants 35,000 48,823 13,823 44,007 Total intergovernmental revenue 2,065,966 1,958,152 (107,814) 2,583,580 Charges for services: ." General government 16,000 12,414 (3,586) 11,510 Public safety 25,000 21 ,308 (3,692) 18,925 Conservation of health 22,000 19,291 (2,709) 15,159 Recreation 70,000 92,538 22,538 84,293 Total charges for current services 133,000 145,551 12,551 129,887 Fines and forfeitures 107,000 146,334 39,334 119,428 Interest on investments 210,000 236,197 26,197 311,544 (Continued) 59 Exhibit B-3 Continued CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL Year Ended December 31, 1982 With Comparative Actual Amounts for Year Ended December 31, 1981 1982 Variance- Favorable 1981 Budget Actual (Unfavorable) Actual -, Miscellaneous revenue: Rent income $ 8,000 $ 8,252 $ 252 $ 8,555 ,_ Sale of property 15,000 113,236 98,236 42,339 Donations 15,000 11 ,315 (3,685) 9,051 Miscellaneous refunds 10,000 5,690 (4,310) 14,278 Total miscellaneous revenue 48,000 138,493 90,493 74,223 Total revenue 5,292,394 5,271,285 (21,109) 5,496,768 Other financing sources: Operating transfers from - Municipal State Aid Fund 135,000 170,430 35,430 125,000 Revenue Sharing Fund 255,000 255,000 245,000 Sears Fund 1,310 1 ,310 Special Assessment Revolving Fund 2,155 2,155 Liquor Fund 100,000 100,000 90,000 �. Total other financing sources 490,000 528,895 38,895 460,000 Total revenues and other financing sources $5,782,394 $5,800,180 $ 17,786 $5,956,768 60 Exhibit B-4 CITY OF FRIIDLEY, MINNESOTA GENERAL FUND STATEMENT OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL Year Ended December 31, 1982 With Comparative Actual mounts for Year Ended December 31, 1981 1982 Variance- Favorable 1981 Budget Actual (Unfavorable) Actual General government: Mayor and council - Personal services $ 62,346 $ 49,321 $ 13,025 $ 49,930 Supplies and other charges 27,850 22,810 5,040 22,561 90,196 72,1310 18,065 72,491, Planning commission - Personal services 28,029 24,555 3,474 24,802 ■. Supplies and other charges 10,315 4,337 5,978 5,470 38,344 28,8920 9,452 30,272 Other commissions - .. Personal services 10,243 5,214 5,029 9,458 Supplies and other charges 34,738 23,642 11 ,096 39,190 44,981 28,8560, 16,125 48,648 City manager - Personal services 131,137 95,896 35,241 119,470 Supplies and other charges 48,805 43,953 4,852 43,098 -. 179,942 139,84 40,093 162,568 Personnel - Personal services 28,911 29,190 (279) 27,224 Supplies and other charges 5,750 3,756 1 ,994 4,150 34,661 32,946 ; 1,715 31,374 Legal - '^ Personal services 6,221 2,171 4,050 Supplies and other charges 84,119 83,979 140 60,088 90,340 86,150 z5' 4,190 60,088 Elections - Personal services 33,090 27,626 5,464 7,254 Supplies and other charges 3,410 6,332 (2,922) 1,613 36,500 33,9580 2,542 8,867 Accounting - Personal services 127,779 122,087 5,692 116,991 Supplies and other charges 75,099 72,917 2,182 60,454 202,878 195,00423 7,874 177,445 Assessing - Personal services 134,673 118,506 16,167 118,442 Supplies and other charges 16,750 10,884 5,866 9,200 151 ,423 129,390E 22,033 127,642 Total general government 869,265 747,176 122,089 719.395 (Continued) 61 Exhibit B-4 Continued CITY OF FRIDLEY, MINNESOTA GENERAL FOND STATEMENT OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL Year Ended December 31, 1982 With Comparative Actual Amounts for Year Ended December 31, 1981 1982 Variance- Favorable 1981 Budget Actual (Unfavorable) Actual Public safety: Police - Personal services 1 ,471,059 1 ,337,996 133,063 $1,188,421 Supplies and other charges 206,164 187,041 19,123 210,877 1 ,677,223 1 ,525,03767-; 152,186 1,399,298 Fire - Personal services 325,253 303,666 21 ,587 313,916 Supplies and other charges 60,900 64,735 (3,835) 117,126 386,153 368,4010 17,752 431,042 Civil defense - Personal services 47,457 42,522 4,935 36,379 Supplies and other charges 7,480 4,036 3,444 3,357 54,937 46,558 8,379 39,736 Total public safety 2,118,313 1,939,996 178,317 1,870,076 Civic center: Personal services 61 ,920 49,576 12,344 60,134 Supplies and other charges 82,074 66,317 15,757 62,275 ., 143,994 115,893e 28,101 122,409 Public works: Code enforcement - Personal services 160,404 153,808 6,596 153,225 Supplies and other charges 30,900 21,726_ 9,174 23,170 191 ,304 175,5345 15,770 176,395 -- Planning - Personal services 120,161 126,809 (6,648) 90,314 Supplies and other charges 21 ,719 14,341 7,378 316,236 141 ,880 141 ,150 9 730 406,550 Engineering - Personal services 70,667 70,513 154 66,375 Supplies and other charges 26,375 20,380 5,995 34,370 97,042 90,69315 6,149 100,745 Public works - Personal services 327,118 323,015 4,103 313,532 Supplies and other charges 401 ,252 399,283 1 ,969 411 ,567 728,370 722,298 6,072 725,099 Total public works 1,158,596 1,129,875 28,721 1,408,789 (Continued) 62 Exhibit B-4 Continued - CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL Year Ended December 31, 1982 With Comparative Actual Amounts for Year Ended Deaeeber 31, 1981 1982 Variance- .. Favorable 1981 Budget Actual (Unfavorable) Actual Parks and recreation: ,_ Naturalist - Personal services 70,445 73,617 (3,172) $ 55,587 Supplies and other charges 31 ,115 21,750 9,365 27,644 101,560 95,36•W 6,193 83,231 Parks - Personal services 285,529 293,609 (8,080) 251 ,777 Supplies and other charges 252,768 208,730 44,038 294,254 538,297 502,339 6- 35,958 546,031 Recreation - .- Personal services 266,509 223,324 43,185 241 ,665 Supplies and other charges 131,598 90,111 41 ,487 124,408 398,107 313,435 84,672 366,073 "' Total parks and recreation 1,037,964 911,141 126,823 995,335 Debt service: Principal 14,845 14,845 13,743 Interest 1 ,188 1 ,188'',N 2,287 Total debt service 16,033 16,033 -0- 16,030 .. Reserve for contingencies 175,500 -0- 175,500 -0- Capital outlay expenditures - Other commissions 5,804 6,806 (1,002) .. City manager 2,160 2,176.'' (16) 3,645 Personnel 250 250 Elections 712 ., Accounting 545 500(" 45 913 Assessing 4,845 4,845 430 Police 87,247 79,600e 7,647 76,133 Fire 90,886 65,658 25,228 48,579 Civil defense 116 (116) Civic center 26,400 442'72., 25,958 15,567 Code enforcement 150 150 .. Planning 725 719 10 712 Engineering 1,150 1 ,0832 67 254 Public works 90,123 79,778 10,345 17,332 Naturalist 8,745 2,034 6,711 1 ,316 -' Parks 175,805 128,701E 47,104 91 ,160 Recreation 5,285 5,285 Total capital outlay 500,120 367,609 132,511 256,753 Total expenditures 6,019,785 5,227,723 792,062 5,388,787 (Continued) 63 Exhibit B-4 Continued CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF EXPENDITURES AND OTHER MINCING USES - BUDGET AID ACTUAL Tear Ended December 31, 1982 With Comparative Actual Amounts for Year Ended December 31, 1981 1982 Variance- Favorable 1981 Budget Actual (Unfavorable) Actual Other financing uses - Operating transfers to other funds $ 160,603 $ 196,033 $ (35,430) $ 117,655 Total expenditures and other financing uses $6,180,388 $5,423,756 $ 756,632 $5,506,442 a 64 SPECIAL REVENUE FUNDS Special revenue funds are used to account for revenues from specific sources. They are usually required by statute, ordinance or administrative action to finance particular activities of government. CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1982 With Comparative Totals for December 31, 1981 Municipal State Revenue Cable Aid Sharing TV Assets Cash (deficit) $ (82,339) $ $(31,870) Investments, at cost 1 ,223,255 63,392 Accounts receivable 106,910 Interest receivable Due from other funds Due from other governments 11 ,664 47,156 Total assets $1,152,580 $110,548 $ 75,040 Liabilities and Fund Balance Liabilities: Accounts payable 1 ,886 Deposits payable Contracts payable Salaries payable Due to other funds Total liabilities -0- -0- 1,886 Fund balance: Unreserved - Designated for subsequent years expenditure 21 ,000 92,100 Undesignated 1 ,131 ,580 18,448 73,154 Total fund balance 1,152,580 110,548 73,154 Total liabilities and fund balance $1,152,580 $110,548 $ 75,040 66 Exhibit C-1 '- Home Totals Ownership HMI 1982 1981 $(2,680) $ 22,146 $ (94,743) $ (218,294) 1 ,575,724 2,862,371 3,358,071 106,910 42,243 27,143 27,143 284,454 2,680 850 3,530 2,409 58,820 57,815 $ —0— $1,625,863 $2,964,031 $3,526,698 80,649 82,535 4,999 10,000 10,000 471 47,879 47,879 23 156,236 156,236 318,529 294,764 296,650 324,022 113,100 68,000 1 ,331,099 2,554,281 3,134,676 —0— 1,331,099 2,667,381 3,202,676 $ —0— $1,625,863 $2,964,031 $3,526,698 67 CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUNDS - COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended December 31, 1982 With Comparative Totals for Year Ended December 31, 1981 Municipal State Revenue Cable Aid Sharing TV Revenues: Taxes and special assessments $ $ $ Licenses and permits 106,910 ^ Intergovernmental revenue 75,209 196,355 Fines and forfeitures Interest on investments 121 ,277 24,578 4,674 ., Miscellaneous Total revenues 196,486 220,933 111,584 Expenditures: Current - General government 171 82,087 Public works Capital outlay 990 Total expenditures -0- 171 83,077 Excess of revenues over expenditures 196,486 220,762 28,507 Other financing sources (uses): Operating transfers in Operating transfers out (235,835) (255,000) Total other financing sources (uses) (235,835) (255,000) -0- Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses (39,349) (34,238) 28,507 Fund balance January 1 1,191,929 144,786 44,647 -- Fund balance December 31 $1,152,580 $ 110,548 $ 73,154 68 Exhibit C-2 Home Totals Ownership SRA 1982 1981 152 106,910 41 ,554 374 1 ,150 273,088 752,484 5,000 95,263 245,792 458,652 41 ,401 41 ,401 17,989 374 137,814 667,191 1,275,831 82,258 374 191 ,744 192,118 77,531 1,473,538 1 ,474,528 949,832 374 1,665,282 1,748,904 1,027,363 -0- (1,527,468) (1,081,713) 248,468 1 ,037,253 1,037,253 2,175,914 (490,835) (437,550) -O- 1,037,253 546,418 1,738,364 -0- (490,215) (535,295) 1,986,832 -0- 1,821,314 3,202,676 1,215,844 $-0- $ 1,331,099 $2,667,381 $3,202,676 69 Exhibit C-3 CITY OF FRIra-EY, MINNESOTA MUNICIPAL STATE AID SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1982 and 1981 1982 1981 Assets Cash $ (82,339) $ 89,776 Investments, at cost 1 ,223,255 1 ,094,070 Due from other governments 11 ,664 8,083 Total assets $1,152,580 $1,191,929 Fund Balance Fund balance: Unreserved - Designated for subsequent years expenditure 21 ,000 21 ,000 Undesignated 1 ,131 ,580 1,170,929 Total fund balance $1,152,580 $1,191,929 70 Exhibit C-4 CITY OF FRIDLEY, MINNESOTA MUNICIPAL STATE AID SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1982 With Comparative Actual Amounts for Year Ended December 31, 1981 1982 Variance- Favorable 1981 '- Budget Actual (Unfavorable) Actual Revenues: -� Intergovernmental - Minnesota state aid $ 215,700 $ 75,209 $(140,491) $ 232,782 Interest on investments 70,000 121,277 51 ,277 138,082 Total revenues 285,700 196,486 (89,214) 370,864 Other financing sources (uses): Operating transfers in 20,000 (20,000) • Operating transfers out - General Fund (110,000) (170,430) (60,430) (125,000) Special Assessment Fund (216,700) (65,405) 151 ,295 (65,365) Total other financing sources (uses) (306,700) (235,835) 70,865 (190,365) -- Exoess (deficiency) of revenues and other financing sources over expenditures and other financing uses (21,000) (39,349) (18,349) 180,499 Fund balance January 1 1,191,929 1,191,929 1,011,430 — Fund balance Deoember 31 $1,170,929 $1,152,580 1.1202) $1 191 929 71 Exhibit C-5 CITY OF FRIDLEY, MINNESOTA REVENUE SNARING SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1982 and 1981 1982 1981 Assets Cash (deficit) $ $(279,220) Investments, at cost 63,392 374,274 Due from other governments 47,156 49,732 Total assets $110,548 $ 144,786 Fund Balance Fund balance: Unreserved - -, Designated for subsequent years expenditure 92,100 47,000 Undesignated 18,448 97,786 Total fund balance $110,548 $ 144:786 72 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, 1982 With Comparative Actual Amounts for Year Ended December 31, 1981 1982 Variance- Favorable 1981 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental - Revenue sharing $201 ,000 $196,355 $(4,645) $212,074 Interest on investments 7,000 24,578 17,578 33,023 Total revenues 208,000 220,933 12,933 245,097 Expenditures: General government - ^` Personal services 129 129 Supplies and other charges 42 42 Total expenditures 171 171 -0- -0- .. Excess (deficiency) of revenues over expenditures 207,829 220,762 12,933 245,097 Other financing uses: Operating transfers out - General fund (255,000) (255,000) -0- (245,000) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses (47,171) (34,238) 12,933 97 Fund balance January 1 144,786 144,786 144,689 Fund balance December 31 $ 97,615 $110,548 $12,933 $144,786 73 Exhibit C-7 CITY OF FRIDLEY, MINNESOTA CABLE TV SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1982 and 1981 1982 1981 Assets Cash (deficit) $(31,870) $(26,838) ^ Investments, at cost 29,931 Accounts receivable 106,910 41 ,554 ^ Total assets $ 75,040 $ 44,647 Liabilities and Fund Balance Liabilities: Accounts payable 1,886 -0- -, Fund balance: Unreserved - undesignated 73,154 44,647 Total liabilities and !kind balance $ 75,040 $ 44,647 74 -- 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, 1982 With Comparative Actual Amounts for Year Ended December 31, 1981 1982 Variance- Favorable 1981 Budget Actual (Unfavorable) Actual Revenues: Licenses - Cable TV $90,000 $106,910 $16,910 $41 ,554 Interest on investments 3,000 4,674 1 ,674 3,093 Total revenues 93,000 111,584 18,584 44,647 Expenditures: Current - General government Personal services 35,000 30,302 4,698 Supplies and other charges 52,000 51 ,785 215 Capital outlay 900 990 (90) •-• Total expenditures 87,900 83,077 4,823 -0- Excess (deficiency) of revenues over expenditures 5,100 28,507 23,407 44,647 Fund balance January 1 44,647 44,647 -O- .. Fund balance December 31 $49,747 $ 73,154 $23,407 $44,647 75 Exhibit C-9 CITY OF FRIDLEY, MINNESOTA HONE OWNERSHIP SPECIAL REVENUE FUND -' COMPARATIVE BALANCE SHEET December 31, 1982 and 1981 1982 1981 Assets Cash (deficit) $(2,680) $(2,386) Due from other funds 2,680 2,409 Total assets $ -0- $ 23 Liabilities and Fund Balance Liabilities: Salaries payable -0- 23 Fund balance: Unreserved - undesignated -0- -0- Total liabilities and fund balance $ -0- # 23 76 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, 1982 With Comparative Actual Amounts for Year Ended December 31, 1981 1982 Variance- Favorable 1981 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental - Housing Redevelopment Authority $ 374 $ 374 $ -0- $ 3,570 Expenditures: Current - Public Works Personal services 102 102 3,230 Supplies and other charges 272 272 340 Total expenditures 374 374 -0- 3,570 Excess (deficiency) of revenues over expenditures -0- -0- -0- -O- .. Fund balance January 1 -0- -0- -0- Fund balance December 31 $ -0- $ -0- $ -0- $ -0- M4 MM 77 Exhibit C-11 CITY OF FRIDLEY, MINNESOTA HOUSING AID REDEVELOPMENT AUTHORITY SPECIAL REVENUE FUND ^' COMPARATIVE BALANCE SHEET December 31, 1982 and 1981 1982 1981 Assets Cash $ 22,146 $ 374 - Investments, at cost 1 ,575,724 1 ,859,796 Accounts receivable 689 Interest receivable 27,143 284,454 Due from other funds 850 Total assets $1,625,863 $2,145,313, Liabilities and Fund Balance Liabilities: Accounts payable 80,649 4,999 Deposits payable 10,000 471 Contracts payable 47,879 Due to other funds 156,236 318,529 Total liabilities 294,764 323,999 Fund balance: Unreserved - undesignated 1,331,099 1,821,314 Total liabilities and fund balance $1,625,863 $2,145,313 78 Exhibit C-12 CITY OF FRIDLEY, MINNESOTA HOUSING AID REDEVELOPMENT AUTHORITY SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1982 With Comparative Actual Amounts for Year Ended December 31, 1981 1982 Varianoe- Favorable 1981 Budget Actual (Unfavorable) Actual Revenues: Taxes and special assessments # -0- $ -0- $ -0- $ 152 Intergovernmental Revenue - Housing Redevelopment Authority 1,000 1,150 150 304,058 Fines and forfeits -0- -0- -0- 5,000 Interest on investments 90,000 95,263 5,263 284,454 Miscellaneous Revenue: Rent income 30,000 32,080 2,080 5,989 Sale of property 5,000 8,471 3,471 12,000 Other 850 850 Total miscellaneous revenue 35,000 41,401 6,401 17,989 Total revenues 126,000 137,814 11,814 611,653 .� Expenditures: Current - Public works 191 ,000 191 ,744 (744) 73,961 Capital outlay 1 ,480,000 1,473,538 6,462 _ 949,832 Total expenditures 1,671,000 1,665,282 5,718 1,023,793 Excess (deficiency) of revenues over expenditures (1,545,000) (1,527,468) 17,532 (412,140) Other financing sources (uses): Operating transfers in 1,037,253 1,037,253 2,175,914 Operating transfers out (2,185) Total other financing sources (uses) 1,037,253 1,037,253 -0- 2,173,729 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses (507,747) (490,215) 17,532 1,761,589 Fund balance January 1 1,821,314 1,821,314 59,725 Fund balance December 31 $1,313,567, $ 1,331,099 $ 17,532 $1,821,314 79 DEBT SERVICE FUNDS Debt service funds are used to account for the payment of principal and interest on all general obligation debt other than that payable from special assessments and debt issues for and serviced primarily by a governmental enterprise. Exhibit D-1 CITY OF FRIDLET, MINNESOTA .. DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1982 With Comparative Totals for December 31, 1981 Totals City HRA 1982 1981 Assets Cash (deficit) $ $ (88,875) $ (88,875) $ 3,341 Investments, at cost 82,255 618,430 700,685 99,745 Receivables: Taxes Unremitted 118 89 207 74,300 Delinquent 2,155 3,462 5,617 69,585 Less: Estimated uncollectable (2,155) (3,462) (5,617) (69,585) Interest 3,960 Due from other governments _ 53,986 Total assets $82,373 $ 529,644 $ 612,017 $2.35,332 Liabilities and Fund Balance Liabilities: Deferred revenue 118 89 207 51,291 Fund balance: Reserved for debt service 82,255 529,555 611,810 184,035 Total liabilities and fund balance $82,373 $ 529,644 $ 612,017 $235,332 81 Exhibit D-2 CITY OF FRIDLEY, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended December 31, 1982 -- With Comparative Totals for Year Ended December 31, 1981 Totals City BRA 1982 1981 Revenues: Taxes $28,702 $ $ 28,702 $ 29,915 Tax increment 304,517 304,517 193,763 Intergovernmental - Homestead credit 7,118 7,118 8,672 Interest on investments 4,960 124,584 129,544 9,361 Total revenues 40,780 429,101 469,881 241,711 Expenditures: Debt service - Principal retirement 30,000 30,000 30,000 Interest and fiscal charges 5,478 181 ,282 186,760 97,156 Total expenditures 35,478 181,282 216,760 127,156 Excess of revenues over expenditures 5,302 247,819 253,121 114,555 Other financing sources (uses): Proceeds of general obligation bonds 1 ,211 ,907 1,211 ,907 2,173,729 Operating transfers out (1,037,253) (1,037,253) (2,173,729) Total other financing sources (uses) -0- 174,654 174,654 -0- -' Excess of revenues and other financing sources over expenditures and other -- financing uses 5,302 422,473 427,775 114,555 Fund balance January 1 76,953 107,082 184,035 69,480 Fund balance December 31 $82,255 $ 529,555 $ 611,810 $ 184,035 82 • CAPITAL PROJECTS FUNDS Capital project funds are used to account for financial resources used for the acquisition of capital facilities and equipment by the City. CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET December 31, 1982 With Comparative Totals for December 31, 1981 -' North Capital North Park Improvement Park Visitation Assets Cash (deficit) $ $ $ 5,000 Investments, at cost 1 ,197,517 75,764 Taxes receivables Unremitted 140 Delinquent 2,397 Less: Estimated uncollectable taxes (2,397) Due from other governments Total assets $1,197,657 $-0- $80,764 Liabilities and Fund Balance -. Liabilities: Accounts payable ., Deferred revenue 140 Due to other governments - Total liabilities 140 -0- -0- Fund balances: Reserved for encumbrances -- Reserved for fixed asset replacement 1 ,197,517 Unreserved - undesignated 80,764 Total fund balances 1,197,517 -0- 80,764 Total liabilities and fund balances $1,197,657 $-0- $80,764 84 Exhibit E-1 University Avenue Totals Sears Bike/Walk 1982 1981 $ 1,514 $ (958) 5,556 180 4 , $ $ ,97 369,248 1,642,529 1 ,258,721 140 296 2,397 4,562 (2,397) (4,562) 1,123 1,123 23,531 #370,762 $ 165 $1,649,348 $1,463,522 2,511 2,511 140 296 2,038 2,038 4,549 -0- 4,689 296 8,875 1 ,197,517 1,038,321 366,213 165 447,142 416,030 366,213 165 1,644,659 1,463,226 •- $370,762 $ 165 $1,649,348 $1,463,522 85 CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECTS FUNDS -. COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended December 31, 1982 With Comparative Totals for Year Ended December 31, 1981 North Capital North Park Improvement Park Visitation Revenues: Taxes - Current ad valorem taxes $ 34,049 $ $ Delinquent ad valorem taxes 313 Total taxes 34,362 -0- -o- Intergovernmental - Homestead credit 8,531 State grant Total intergovernmental 8,531 -0- -0- Interest on investments 116,303 -0- 9,027 — Miscellaneous revenue - Sale of property -- Donations Other Total miscellaneous -0- -0- -0- Total revenues 159,196 -0- 91027 (Continued) 86 Exhibit E-2 University Avenue Totals Sears Bike/Walk 1982 1981 $ $ $ 34,049 $ 33,788 313 728 —0— —0— 34,362 34,516 8,531 10,065 542 542 110,557 -0- 542 9,073 120,622 28,154 -0- 153,484 148,837 121,750 75,000 75,000 195,000 1 ,738 75,000 -0- 75,000 318,488 103,154 542 271,919 622,463 87 CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUESL EXPENDITURES AND CHANGES IN FUND BALANCES (Continued) .. Year Ended December 31, 1982 With Comparative Totals for Year Ended December 31, 1981 North Capital North Park Improvement Park Visitation Expenditures: Capital projects - — Construction contracts $ $ $ Engineering and other 7,994 Interest expense .. Total expenditures -0- -0- 7,994 Excess of revenues over expenditures 159,196 -0- 1,033 Other financing sources (uses): Operating transfers in (out) - General Fund North Park Fund 244 North Park Visitation Fund (244) Special Assessment Fund (17,700) Total other financing -. sources (uses) -0- (244) (17,456) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses 159,196 (244) (16,423) Fund balance January 1 1,038,321 244 97,187 Fund balance December 31 $1,197,517 $ _0_ $80,764 -- 88 Exhibit E-2 Continued University Avenue Totals Sears Bike/Valk 1982 1981 $ 43,830 $ $ 43,830. $ 96,823 19,110 542 27,646 32,727 1,228 62,940 542 71,476 130,778 40,214 -0- 200,443 491,685 (1,310) (1,310) 244 (244) (17,700) (1,310) -0- (19,010) -0- 38,904 -0- 181,433 491,685 327,309 165 1,463,226 971,541 $366,213 $165 $1,644,659 $1,463,226 89 SPECIAL ASSESSMENT FUNDS Special assessment funds are set up to account for the construction of improvements or provision of services which are to be financed, wholly or in part, by special assessments levied against the benefited property. Exhibit F-1 CITY OF FRIDLEY, MINNESOTA _ SPECIAL ASSESSMENT FUNDS COMBINING BALANCE SHEET December 31, 1982 With Comparative Totals For December 31, 1981 - Special Totals Assessment Revolving 1982 1981 Assets Cash (deficit) $ 44,152 $ $ 44,152 $ (24,694) Investments, at cost 6,190,442 600,926 6,791 ,368 6,790,580 Receivables: Special Assessments Deferred 3,867,622 61,350 3,928,972 4,327,042 Delinquent 404,102 4,291 408,393 347,976 Less: estimated uncollectible (404,102) (4,291) (408,393) (347,976) Due from other governments 3,744 - Total assets $10,102,216 $662,276 $10,764,492 $11,096,672 Liabilities and Fund Balance Liabilities: Accounts payable 775 775 4,331 Deposits payable 102,079 102,079 116,916 Contracts payable 86,282 86,282 5,019 Salaries payable 88 ▪ Bonds payable 5,325,000 5,325,000 6,264,000 Deferred revenue 3,867,622 61,350 3,928,972 4,327,042 Total liabilities 9,279,679 163,429 9,443,108 10,717,396 Fund balances: Reserved for encumbrances 121 ,753 121,753 629,422 Reserved for debt service 874,821 874,821 (871 ,472) Unreserved - undesignated (174,037) 498,847 324,810 621 ,326 - Total fund balance 822,537 498,847 1,321,384 379,276 Total liabilities and fund balances $10,102,216 $662,276 $10,764,492 $11,096,672 91 Exhibit F-2 CITY OF FRIDLEY, MINNESOTA SPECIAL ASSESSMENT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHARGES IN FUND BALANCES December 31, 1982 With Comparative Totals For Year Ended December 31, 1981 Special Totals -- Assessments Revolving 1982 1981 Revenues: -• Special assessments $ 592,001 $ 16,214 $ 608,215 $ 601 ,614 Intergovernmental - local 86,006 86,006 62,702 Interest on investments 623,523 59,781 683,304 740,269 Interest and penalties on assessments 369,756 6,007 375,763 353,374 Miscellaneous 6,320 11 ,369 17,689 9,508 Total revenues 1,677,606 93,371 1,770,977 1,767,467 Expenditures: Capital projects 682,441 215 682,656 718,769 Debt service - -- Interest and fiscal charges 396,146 396,146 466,252 Other - Discount on bonds issued 18,690 18,690 Total expenditures 1,097,277 215 1,097,492 1,185,021 Excess of revenues over expenditures 580,329 93,156 673,485 582,446 Other financing sources (uses): Operating transfers in - General Fund 196,033 196,033 117,655 Municipal State Aid Fund 65,405 65,405 65,365 North Park Fund 17,700 17,700 -- Revolving Fund 9,215 9,215 Operating transfers out - General Fund (2,155) (2,155) Public Utility Fund (8,360) (8,360) (8,360) Special Assessment Fund (9,215) (9,215) Total other financing sources (uses) 288,353 (19,730) 268,623 174,660 -- Excess of revenues and other financing sources -- over expenditures and other financing uses 868,682 73,426 942,108 757,106 Fund balance January 1 as previously reported 4,554,177 500,117 5,054,294 3,562,225 Adjustment: See note 2 (4,600:322) (74,696) (4,675,018) (3,940,055) -- Fund balance January 1 as restated (46,145) 425,421 379,276 (377,830) Fund balance December 31 $ 822,537 $498,847 $ 1,321,384 $ 379,276 92 ENTERPRISE FUNDS Enterprise funds are set up to account for the acquisition and operation of governmental facilities and services that are entirely or predominately self-supporting from user charges. The City of Fridley operates the following enterprise activities: 1 ) Liquor - Off-Sale 2) Public Utility - Sanitary Sewer and Water 3) Christenson Building - Rental Property CITY OF FRIDLE!, IIIBNESOTA Exhibit G-1 ENTERPRISE FUNDS - COMBINING BALANCE SWEET .-. December 31, 1982 With Comparative Totals For December 31, 1981 .- Public Christenson Totals Liquor Utilities Building 1982 1981 Assets - Current assets: Cash (deficit) $ 10,486 $ 65,258 $ $ 75,744 $ (60,861 Investments, at cost 684,927 2,779,720 3,464,647 3,078,336 - Accounts receivable 394,411 394,411 317,161 Due from other funds 14,845 Due from other governments 13,311 13,311 297,452 • Inventories, at cost 203,155 3,134 206,289 195,840 Prepaid expenses 76,909 76,909 70,279 Total current assets 898,568 3,332,743 -0- 4,231,311 3,913,052 - Long term receivable - Metropolitan Waste Control Commission -0- 367,773 -0- 367,773 383,235 - Restricted assets (for debt service): Cash (deficit) (20,678 Investments, at cost 188,068 188,068 226,113 Total restricted assets -0- 188,068 -0- 188,068 205,435 Property and equipment, at cost: Property and equipment 323,639 13,218,291 13,541 ,930 13,498,368 -' Less: Accumulated depreciation (85,545) (1,560,424) (1 ,645,969) (1,643,484; Net property and equipment 238,094 11,657,867 -0- 11,895,961 11,854,884 Total assets $1,136,662 $15,546,451 $ -0- $16,683,113 $16,356,606 Liabilities and Fund Equity Current liabilities: Accounts payable 92,677 26,787 119,464 103,428 ▪ Contracts payable 877 Salaries payable 2,603 3,697 6,300 5,299 Due to other funds 850 850 Due to other governments 9,170 41 ,686 50,856 59,231 '- Bonds payable 50,000 50,000 50,000 Total current liabilities 1044450 123,020 -0- 227,470 218,835 -- Long term liabilities: Bonds payable (net of current portion) 220,000 220,000 270,000 ▪ Deferred revenue 396,034 Total long term liabilities -0- 220,000 -0- 220,000 666,034 Total liabilities 104,450 343,020 -0- 447,470 884,869 Fund equity: Contributed capital 10,166,680 10,166,680 10,166,680 - Retained earnings - unreserved 1,032,212 5,036,751 6,068,963 5,305,057 Total fund equity 1,032,212 15,203,431 -0- 16,235,643 15,471,737 Total liabilities and fund equity $1,136,662 $15,546,451 $ -0- $16,683,113 $16,356,606 93 Exhibit G-2 CITY OF FRIDLEY, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Year Ended December 31, 1982 ,- With Comparative Totals For Year Ended December 31, 1981 Public Christenson Totals Liquor Utilities Building 1982 1981 Sales and cost of sales: Sales $1,714,953 $ $ $1,714,953 $1,743,846 Cost of sales 1,374,894 1,374,894 1,399,165 Gross profit 340,059 -0- -0- 340,059 344,681 -- Operating revenues: Water sales and sewer rents 1,680,304 1,680,304 1,494,168 Rental income 17,731 "' Other 73,614 73,614 65,913 Total operating revenue -0- 1,753,918 -0- 1,753,918 1,577,812 Operating expenses: Personal services 169,020 426,828 595,848 512,192 Supplies and other charges - Disposal charges 847,581 847,581 724,309 - Other 75,030 409,007 484,037 596,301 Depreciation 15,534 84,402 99,936 121 ,580 ' Total operating expenses 259,584 1,767,818 -0- 2,027,402 1,954,382 Operating inoome (loss) 80,475 (13,900) -0- 66,575 (31,889) Nonoperating revenues (expenses): „ Intergovernmental revenue - local grant 2,116 2,116 302,009 Interest on investments 65,982 312,568 378,550 426,865 Debt service (10,415) (10,415) (14,681) -- Other 22,146 540 22,686 30,575 Land acquisition (274,995) Total non-operating -- revenues (expenses) 88,128 304,809 -0- 392,937 469,773 Income before extraordinary item and operating transfers 168,603 290,909 -0- 459,512 252,379 Extraordinary item -0- 396,034 -0- 396,034 -0- Income before operating transfers 168,603 686,943 -0- 855,546 437,884 Operating transfers in (out) General Fund (100,000) (100,000) (90,000) Revolving Fund 8,360 8,360 8,360 Total operating transfers (100,000) 8,360, -0- (91,640) (81,640) Net income 68,603 695,303 763,906 356,244 Retained earnings January 1 963,609 4,341,448 -0- 5,305,057 4,948,813 Retained earnings December 31 $1,032,212 $5,036,751 $ -0- $6,068,963 $5,305,057 94 Exhibit G-3 CITY OF FRIDLEY, MINNESOTA ENTERPRISE FUNDS .., COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION Year Ended Deoember 31, 1982 With Comparative Totals For Year Ended December 31, 1981 Public Christenson Totals Liquor Utilities Building 1982 1981 Sources of working capital: Operations: Net income (loss) for the year $ 68,603 $695,303 $ $ 763,906 $ 356,244 Items not requiring working capital depreciation 15,534 84,402 99,936 121 ,580 Working capital provided by operations 84,137 779,705 863,842 477,824 Decrease in long term receivable 15,462 15,462 14,819 Net decrease in restricted assets 17,367 17,367 4,205 Total sources of working capital 84,137 812,534 -0- 896,671 496,848 Uses of working capital: - Acquisition of property and equipment 43,560 97,453 141 ,013 73,171 Decrease in long term bonds payable 50,000 50,000 85,625 Decrease in deferred revenue 396,034 396,034 52,092 Total uses of working capital 43,560 543,487 -0- 587,047 210,888 Net increase in working capital $ 40,577 $269,047 $ -0- $ 309,624 $ 285,960 Elements of net increase (decrease) in working capital: Cash $(103,478) $(44,878) $ 284,961 $ 136,605 $(321 ,919) Investments 144,879 241 ,432 386,311 371 ,336 Receivables (54) 77,612 (308) 77,250 10,286 Due from other funds (14,845) (14,845) (13,743) Due from other governments 512 (284,653) (284,141) 244,539 Inventory 14,201 (3,752) 10,449 7,683 Prepaid expenses 6,630 6,630 6,230 Accounts payable (16,136) 100 (16,036) 30,473 Contracts payable 877 877 (877) Salaries payable (911) (90) (1,001) (692) Due to other funds (850) (850) Due to other governments 2,076 6,299 8,375 (59,231) Bonds payable 11,875 Net increase in working capital $ 40,577 $269,047 $ -0- $ 309,624 $ 285,960 95 Exhibit G-4 CITY OF FRIDLEY, MINNESOTA LIQUOR ENTERPRISE FUND COMPARATIVE BALANCE SHEET Deoeaber 31, 1982 and 1981 1982 1981 Assets Current assets: Cash $ 10,486 $ 113,964 Investments, at cost 684,927 540,048 -- Accounts receivable 54 Inventories at cost 203,155 188,954 Total current assets 898,568 843,020 Property and equipment, at cost: Land 66,961 66,961 Buildings 130,211 140,329 Improvements other than buildings 1,469 1,469 Machinery and equipment 124,998 93,965 323,639 302,724 Less: Accumulated depreciation (85,545) (92,656) Net property and equipment 238,094 210,068 Total assets $1,136,662 $1,053,088 Liabilities and Fund Equity Current liabilities: ._ Accounts payable 92,677 76,541 Salaries payable 2,603 1,692 Due to other governments 9,170 11,246 Total liabilities 104,450 89,479 Fund equity: -- Retained earnings - unreserved 1,032,212 963,609 Total liabilities and fund equity $1,136,662 $1,053,088 96 Exhibit G-5 CITY OF FRIDLEY, MINNESOTA -. LIQUOR ENTERPRISE FOND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS -- Year Ended December 31, 1982 and 1981 1982 1981 Sales and cost of sales: Sales $1,714,953 81,743,846 Cost of sales 1,374,894 1,399,165 Gross profit 340,059 344,681 Operating expenses: Selling: Personal services 121,777 104,707 Supplies and other charges 5,625 5,038 Total operating expenses 127,402 109,745 Overhead: Supplies and other charges 49,179 55,856 Depreciation 15,534 11,463 _ Total overhead expenses 64,713 67,319 Administrative: Personal services 47,243 47,993 Supplies and other charges 20,226 12,414 Total administrative 67,469 60,407 -' Total operating expenses 259,584 237,471 Operating income 80,475 107,210 Non-operating revenues: Interest on investments 65,982 70,344 ^, Other 22,146 15,421 Total non-operating revenues 88,128 85,765 Inoome before operating transfers 168,603 192,975 Operating transfer to General Fund (100,000) (90,000) Net income 68,603 102,975 Retained earning' danaery 1 963,609 860,634 Retained earnings December 31 #1032,212 $ 963,609 97 Exhibit G-6 CITY OF FRIDLEY, MINNESOTA LIQUOR ENTERPRISE FUND COMPARATIVE STATEMENT OF CHANGES II FINANCIAL POSITION Year Ended December 31, 1982 and 1981 1982 1981 ^ Sources of working capital: Operations: Net income for the year $ 68,603 $102,975 ., Items not requiring working capital - depreciation 15,534 11,463 Total sources of working capital 84,137 114,438 Uses of working capital: Acquisition of property and equipment 43,560 10,118 Net increase in working capital $ 40,577 $104,320 Elements of net increase (decrease) in working capital: Cash $(103,478) $ 51 ,721 Investments 144,879 63,048 Receivables (54) 54 Inventory 14,201 6,047 Prepaid expenses (9,880) Accounts payable (16,136) 4,864 Salaries payable (911) (288) -- Due to other governments 2,076 (11,246) Net increase in working capital $ 40,577 $104,320 98 Exhibit G-7 CITY OF FRIDLET, MINNESOTA PUBLIC UTILITY ENTERPRISE FUND COMPARATIVE BALANCE SHEET December 31, 1982 and 1981 1982 1981 Assets Current assets: Cash $ 65,258 $ 110,136 Investments, at cost 2,779,720 2,538,288 Accounts receivable 394,411 316,799 Due from other funds 14,845 Due from other governments 13,311 12,799 Inventories at cost 3,134 6,886 Prepaid expense 76,909 70,279 Total current assets 3,332,743 3,070,032 -. Long-term receivable - Metropolitan Waste Control Commission 367,773 383,235 Restricted assets: - Cash (deficit) (20,678) Investments, at cost 188,068 226,113 Total restricted assets 188,068 205,435 Property and equipment, at cost: Land 154,881 154,881 Buildings 754,608 754,608 Improvements other than buildings 123,909 123,909 Machinery and equipment 2,018,213 1,995,566 Water and sewer lines 10,166,680 10,166,680 ._ 13,218,291 13,195,644 Less: Accumulated depreciation (1,560,424) (1,550,828) Net property and equipment 11,657,867 11,644,816 Total assets $15,546,451 $15,303,518 Liabilities and Fund Equity Current liabilities: Accounts payable 26,787 26,887 Contracts payable 877 Salaries payable 3,697 3,607 Due to other funds 850 Due to other governments 41,686 47,985 Bonds payable 50,000 50,000 Total current liabilities 123,020 129,356 Long term liabilities: Bonds payable (net of current position) 220,000 270,000 Deferred revenue 396,034 Total long term liabilities 220,000 666,034 Total liabilities 343,020 795,390 Fund equity: Contributed capital 10,166,680 10,166,680 Retained earnings - unreserved 5,036,751 4,341,448 Total fund equity 15,203,431 14,508,128 Total liabilities and fund equity $15,546,451 $15,303,518 99 Exhibit G-8 CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITY ENTERPRISE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AID CHANGES IN RETAINED EARNINGS Year Ended December 31, 1982 and 1981 -- 1982 1981 Operating revenues: Water sales and sewer rents $1,680,304 $1,494,168 Other 73,614 65,913 Total operating revenues 1,753,918 1,560,081_ Operating expenses: Personal services 426,828 358,952 Supplies and other charges - Disposal charges 847,581 724,309 -. Other 409,007 488,292 Depreciation 84,402 110,117 Total operating expenses 1,767,818 1,681,670 Operating inoome (loss) (13,900) (121,589) Non-operating revenues (expenses): Intergovernmental revenue - local grant 2,116 17,356 Interest on investments 312,568 356,521 Debt service (10,415) (14,681) Other 540 14,772 Total non-operating revenues (expenses) 304,809 373,968 Inoo*e before extraordinary item and operating transfers 290,909 252,379 Extraordinary item - remaining balance of deferred gain from sale of sewer mains to Metropolitan Waste Control Commission 396,034 -0- -, Income before operating transfers 686,943 252,379 Operating transfers from (to): Revolving Fund 8,360 8,360 Net income 695,303 260,739 Retained earnings Janaury 1 4,341,448 4,080,709 Retained earnings December 31 $59036,751 $4,341,448 100 Exhibit G-9 CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITY ENTERPRISE FUND COMPARATIVE STATEMENT OF CHANGES II FINANCIAL POSITION Year Ended December 31, 1982 and 1981 1982 1981 Sources of working capital: Operations: Net income $695,303 $260,739 - Items not requiring working capital - depreciation 84,402 110,117 Working capital provided by operations 779,705 370,856 Decrease in long term receivable 15,462 14,819 Net decrease in restricted assets 17,367 4,205 Total sources of working capital 812,534 389,880 Uses of working capital: Acquisition of property and equipment 97,453 63,053 Decrease in long term revenue bonds payable 50,000 85,625 Decrease in deferred revenue 396,034 52,092 Total uses of working capital 543,487 200,770 Net increase in working capital $269,047 $189,110 Elements of net increase (decrease) in working capital: Cash $(44,878) $(88,211) Investments 241 ,432 313,988 Receivables 77,612 11,939 Due from other funds (14,845) (13,743) Due from other governments 512 (40,114) Inventory (3,752) 1,636 Prepaid expenses 6,630 16,110 Accounts payable 100 24,896 Contracts payable 877 (877) Salaries payable • (90) (404) Due to other funds (850) Due to other governments 6,299 (47,985) Bonds payable 11 ,875 Net increase in working capital $269,047 $189,110 101 Exhibit G-10 CITY OF FRIDLEY, MINNESOTA CHRISTENSON BUILDING ENTERPRISE FUND COMPARATIVE BALANCE SHEET December 31, 1982 and 1981 1982 1981 Assets Cash (deficit) $ $(284,961) Investments, at cost Accounts receivable 308 Due from other governments 284,653 Total assets $ -0- $ -0- Fund Equity Fund equity: Retained earnings - unreserved -0- -0- -� Total fund equity $ -0- $ -0- 102 Exhibit G-11 CITY OF FRIDLEY, MINNESOTA CHRISTENSON BUILDING ENTERPRISE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Year Ended December 31, 1982 and 1981 1982 1981 Operating revenues: Rental income $ -0- $ 17,731 Operating expenses: Personal services 540 Supplies and other charges 34,701 Total operating expenses -0- 35,241 — Operating income (loss) -0- (17,510) Non-operating revenues (expenses): Intergovernmental revenue - local grant 284,653 Interest on investments Miscellaneous revenue 382 Land acquisition (274,995) Total non-operating revenues (expenses) -0- 10,040 Net income (loss) -0- (7,470) Retained earnings Janaury 1 -0- 7,470 Retained earnings December 31 $ -0- $ -0- 103 Exhibit G-12 CITY OF FRIDLEY, MINNESOTA CHRISTENSON BUILDING ENTERPRISE FUND COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION Year Ended December 31, 1982 and 1981 1982 1981 Sources of working capital: Operations: Net income (loss) $ -0- $ (7,470) -- Elements of net increase (decrease) in working capital: Cash $ 284,961 $(285,429) Investments (5,700) Receivables (308) (1,707) Due from other governments (284,653) 284,653 Accounts payable 713 Net increase (decrease) in working capital $ -0- $ (7,470) 104 INTERNAL SERVICE FUNDS Internal service funds are set up to account for goods and services provided by designated departments on a cost reimbursement or fee basis to other departments and agencies within the City. Exhibit H-1 .. CITY OF FRIDLEY, MINNESOTA EMPLOYEE BENEFITS INTERNAL SERVICE FUND COMPARATIVE BALANCE SHEET Deoeaber 31, 1982 and 1981 1982 1981 Assets Cash (deficit) $ 28,001 $(137,000) Investments, at cost 550,256 648,572 Accounts receivable 118 Total assets $578,257 $ 511,690 Liabilities and Fund Equity Liabilities: -- Leave payable 172,097 198,213 Due to other governements 28,000 Total liabilities 200,097 198,213 Fund equity: Retained earnings Reserved for employee benefits 378,160 313,477 Total liabilities and fund equity $578,257 $ 511,690 105 Exhibit H-2 CITY OF FRIDLEY, MINNESOTA EMPLOYEE BENEFITS INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES II RETAINED EARNINGS Tear Ended December 31, 1982 and 1981 -- 1982 1981 ., Operating revenues: Charges for services $686,643 $790,849 Operating expenses: Benefit payments 711,653 738,698 Operating income (loss) (25,010) 52,151 Non-operating revenues: Interest income 56,236 11,585 Refunds 33,457 49,946 Total non-operating revenues 89,693 61,531 Net income 64,683 113,682 Retained earnings Janaury 1 313,477 199,795 —' Retained earnings December 31 $378,160 $313,477 106 Exhibit H-3 CITY OF FRIDLEY, MINNESOTA EMPLOYEE BENEFITS INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION Year Ended December 31, 1982 and 1981 1982 1981 Sources of working capital: Operations: Net income $ 64,683 $ 113,682 Elements of net increase (decrease) in working capital: Cash $165,001 $(547,531) Investments (98,316) 648,572 Accounts receivable (118) 118 Accounts payable (28,000) 2,953 Salaries payable 155 Leave payable 26,116 9,415 Net increase in working capital $ 64,683 $ 113,682 107 1 TRUST AND AGENCY FUNDS Trust and agency funds are set up to account for the resources held by the City as a trustee or agent for other funds or entities. Exhibit I-1 CITY OF FRIDLEY, MINNESOTA TRUST AND AGENCY FUND COMPARATIVE BALANCE SHEET December 31, 1982 and 1981 1982 1981 Assets Cash $ $ 3,165 Investments, at cost 15,372 31,80t Total assets $15,372 $34,969 Liabilities and Fund Balance Liabilities: Accounts payable 2,128 Deposits payable 15,202 27,902 Total liabilities 15,202 30,030 -- Fund balance: Unreserved - undesignated 170 4,939, Total liabilities and !land balance $15,372 $34,969 109 Exhibit I-2 CITY OF FRIDLEY, MINNESOTA TRUST AND AGENCY FUND COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND (DES IN FUND BALANCE Year Ended December 31, 1982 and 1981 1982 1981 _. Revenues: Interest on investments $2,502 $2,445 Expenditures: Personal services 7,271 -0- Excess (deficiency) of revenues over expenditures (4,769) 2,445 -- Fund balance, Janaury 1 4,939 2,494. Fund belanoe, December 31 $ 170 man 110 GENERAL FIXED ASSETS GROUP OF ACCOUNTS General fixed asset group of accounts are set up to account for long-lived intergovernmental service assets not accounted for in an enterprise, trust or inter 9 fund. Exhibit J-1 CITY OF FRIDLEY, MINNESOTA ^, COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS — BY SOURCES December 31, 1982 and 1981 1982 1981 General fixed assets: Land $ 1,516,153 $ 1,656,778 Building 1,619,095 1 ,629,919 Improvements other than building 14,028,563 13,350,277 Machinery and equipment 1 ,786,$17 1,729,328 Construction in progress 1 ,314,882 680,205 Total general fixed assets $20,265,510 $19,046,507 —• Investment in general fixed assets from: Capital project funds: General obligation bonds $ 856,597 $ 856,597 Federal and state aid 794,052 772,131 General fund revenues 4,684,551 3,946,317 Special revenue fund revenues 990 Special assessments 12,722,177 12,272,319 Private gifts 684,969 676,969 Other sources 522,174 522,174 Total investment in general fixed assets $20,265,510 $19,046,507 111 Exhibit J-2 CITY OF FRIDLEY, MINNESOTA SCHEDULE OF GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY December 31, 1982 Improvements Machinery Other Than and Total Land Buildings Buildings Equipment General government City manager $ 35,528 $ $ $ $ 35,528 Accounting 90,071 90,071 Assessing 6,685 6,685 Elections 18,658 18,658 Planning 12,397 12,397 Civic center 667,135 17,496 583,094 26,175 40,370 Total general government 830,474 17,496 583,094 26,175 203,709 Public safety Police protection 186,908 200 186,708 Fire protection 500,358 142,532 357,826 Inspectional services 17,044 17,044 Civil defense 27,192 27,192 Total public safety 731,502 -0- 142,732 -0- 588,770 Public works Engineering 45,474 45,474 Street improvements 7,782,402 5,764 7,776,638 Water, sewer and storm sewer 5,297,835 5,297,835 Traffic signal 122,115 122,115 City garage 1 ,011,292 97,940 345,736 8,780 558,836 Total public works 14,259,118 103,704 345,736 13,205,368 604,310 Parks/Naturalist Parks 2,312,314 1 ,088,895 118,415 735,150 369,854 -' Naturalist 817,220 306,058 429,118 61,870 20,174 Total parks/naturalist 3,129,534 1,394,953 547,533 797,020 390,028 Total general fixed assets allocated to functions 18,950,628 $1,516,153 $1,619,095 14,028,563 $1,786,817 Construction in progress 1,314,882 Total fixed assets $20,265,510 112 Exhibit J-3 CITY OF FRIDLEY, MINNESOTA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY Year Ended December 31, 1982 General General Fixed Fixed Assets Assets 1/1/82 Additions Deductions 12/31/82 Function and activity General government City manager $ 40,955 $ 9,624 $ 15,051 $ 35,528 Accounting 57,042 33,029 90,071 '- Assessing 7,140 455 6,685 Elections 23,999 5,341 18,658 Planning 18,896 715 7,214 12,397 Civic center 731,390 64,255 667,135 Total general government 879,422 43,368 92,316 830,474 • Public safety Police protection 245,654 79,240 137,986 186,908 Fire protection 368,162 132,196 500,358 Inspection services 1,819 15,225 17,044 ▪ Civil defense 29,069 116 1,993 27,192 Total public safety 644,704 226,777 139,979 731,502 " Public works Engineering 21 ,727 23,747 45,474 Street improvement 7,947,531 348,328 513,457 7,782,402 .. Water, sewer and storm sewer 5,253,323 44,512 5,297,835 Traffic signal 120,288 1 ,827 122,115 City garage 478,677 532,615 1,011,292 Total public works 13,821,546 951,029 513,457 14,259,118 Parks/Naturalist Parks 2,516,961 110,971 315,618 2,312,314 - Naturalist 503,669 313,551 817,220 Total parks/naturalist 3,020,630 424,522 315,618 3,129,534 " Construction in progress 680,205 1,046,208 411,531 1,314,882 Total general fixed assets $192046,507 $2,691,904 $1,472,901 $20,265,510 113 GENERAL LONG TERM DEBT ACCOUNT GROUP General long-term debt group of accounts 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. Exhibit K-1 CITY OF FRIDLET, MINNESOTA COMPARATIVE STATEMENT OF GENERAL LONG-TERM DEBT December 31, 1982 and 1981 1982 1981 -� Amount available and to be provided for the payment of general long-term debt Amount available in general debt service fund $ 611,810 $ 184,035 Amount to be provided by future taxes 2,953,190 2,222,037 Total available and to be provided $3,565,000 $2,406,072 General long-term debt payable General long-term debt payable: General obligation tax increment redevelopment bonds $3,425,000 $2,200,000 Civic center bonds 140,000 170,000 Contracts - city garage and garage addition 21 ,227 Due to Public Utilities Fund 14,845 Total general long-term debt payable $3,565,000 $2,406,072 115 STATISTICAL SECTION Table 1 CITY OF FRIDLEY, MINNESOTA ._ GENERAL GOVERNMENTAL ElENDITURES BY FUNCTION (1) LAST TEN FISCAL /BARS General Public Civic Public Parks and Debt Year Government Safety Center Works Recreation Service Total 1973 $310,866 $ 848,448 $ 62,076 $ 495,006 $ 407,943 $2,124,339 1974 357,012 893,201 61,449 675,381 493,160 2,480,203 1975 436,032 1,016,774 77,753 755,904 582,982 2,869,445 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 Note (1) Includes General, Special Revenue, and Debt Service Funds 117 fable 2 CITY OF FRIDLEY, MINNESOTA GENERAL REVENUES BY SOURCE (1) LAST TEN FISCAL YEARS Inter- Charges General Licenses, govern- for Property Permits mental Current Miscellaneous Total Year Tax and Fines Revenue Services Revenue Revenue 1973 $1,087,173 $157,703 $ 502,955 $ 57,100 $ 93,012 $1,897,943 -, 1974 1 ,344,632 179,142 601 ,266 58,243 112,568 2,295,851 1975 1 ,619,966 174,630 648,872 59,936 115,753 2,619,157 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 Note (1) Includes General, Special Revenue, and Debt Service Funds "^ 118 "' Table 3 CITY OF FRIDLEY, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Collections Percentage Collection — of Current of Levy of prior Years Taxes Collected Years Taxes Ratio During During During of Total Year Total Fiscal Fiscal Fiscal Total Collections Collected Tax Levy Period Period Period Collections to Tax Levy 1973 $1,260,386 $1,245,095 98.79 $30,551 $1,275,646 1.0121:1 1974 1 ,389,672 1 ,365,737 98.28 18,974 1,384,711 .9964:1 1975 1 ,662,544 1,629,395 98.01 29,767 1,659,162 .9980:1 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 2,920,793 2,777,691 95.10 21 ,771 2,799,462 .9585:1 119 CITY OF FRIDLEY, MINNESOTA ASSESSED AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY LAST TEN FISCAL YEARS Fiscal Period 1973 1974 1975 1976 Population 31 ,143 (1) 32,542 32,486 (2) 31,570 Real property Estimated market value $266,730,657 $294,415,529 $325,394,031 $367,264,013 Assessor's limited market value $242,991,629 $270,273,456 $288,949,935 $327,232,236 Assessed value Homestead $ 16,233,935 $ 16,582,864 $ 17,104,208 $ 17,644,329 - Excess and non-homestead 73,166,443 84,043,948 90,832,944 105,665,396 Area wide allocation (3,140,753) (4,541 ,034) Tax-increment value Taxable value $ 89,400,378 $100,626,812 $104,796,399 $118,768,691 Personal property Estimated market value - Taxable property $ 15,796,166 $ 17,323,420 $ 18,183,599 $ 18,073,064 Assessor's value - Taxable property $ 14,390,307 $ 15,902,900 $ 16,147,000 $ 16,103,100 -- Taxable value - Taxable property $ 6,187,860 $ 6,838,247 $ 6,943,210 $ 6,924,333, Total real and personal property Estimated market value $282,526,823 $311,738,949 $343,577,630 $385,337,077 Limited market value $257,381,936 $286,176,356 $305,096,935 $343,335,336 -• Total taxable value $ 95,588,238 $107,465,059 $111,739,609 $125,693,024 Per market value ratios -- Limited market value .911:1* .918:1* .888:1• .891 : 1* Taxable value .338:1 .345:1 .325:1 .326:1 Per capita valuations Estimated market value $ 9,072 $ 9,580 $ 10,576 $ 12,206 Taxable value $ 3,069 $ 3,302 $ 3,440 $ 3,981 Note *Source - State of Minnesota Department of revenue (1) 1972 and subsequent valuations reflect changes as provided for in Laws of 1971 , Extra Session, Chapter 31, amended. Beginning with taxes levied in 1972, collectible in 1973, Minnesota assessed values tripled through elimination of the 33 1/3 ratio previously used to arrive at "adjusted" market values. Tax rates are one-third of past -" rates. 120 — Table 4 _ Fiscal Period 1977 1978 1979 1980 1981 1982 31,940 33,450 32,644 30,228 30,200 29,920 $405,285,288 $456,038,596 $474,610,022 $555,096,298 $632,523,959 $723,016,622 (4) $363,541 ,172 $408,865,261 $458,973,683 $522,308,032 $ N/A (3) $ N/A (3) $ 19,607,606 $ 20,453,732 $ 21,633,558 $ 24,392,539 $ 59,013,036 $ 65,308,228 117,424,505 124,640,289 134,204,943 141 ,946,084 121,924,290 142,031,048 (4,812,211) (6,271,738) (7,376,217) (8,858,508) (10,022,598) (9,340,006) (954,050) (2,708,711) (2,892,948) $132,219,900 $138,822,283 $148,462,284 $156,526,065 $168,206,017 $195,106,322 $ 18,167,447 $ 19,340,803 $ 17,424,500 $ 17,899,900 $ 18,731,800 $ 19,328,400 $ 16,296,200 $ 17,348,700 $ 17,424,500 $ 17,899,900 $ 18,731,800 $ 19,328,400 $ 7,007,366 $ 7,459,941 $ 7,492,535 $ 7,696,957 $ 8,054,674 $ 8,311,212 — $423,452,735 $475,379,399 $492,034,522 $572,996,198 $651 ,255,759 $742,345,022 $379,837,372 $426,213,961 $476,398,183 $540,207,932 $ N/A (3) $ N/A (3) $139,227,266 $146,282,224 $155,954,819 $164,223,022 $176,260,691 $203,417,534 .897:1* .897:1* .968:1 .943:1 N/A (3) N/A (3) .329:1 .308:1 .317:1 .287:1 .271:1 .274:1 $ 12,689 $ 14,212 $ 15,064 $ 18,988 $ 21,565 $ 24,811 $ 4,359 $ 4,373 $ 4,775 $ 5,433 $ 5,836 $ 6,799 (2) Property values include net amount allocated pursuant to Laws of 1971 , Extra Session, Chapter 23, from Area-Wide "Pool." Beginning with taxes levied in 1974, collectible 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 minus the net loss to the Metro Tax Pool. (3) In 1980 , Limited Market Value was omitted as a consideration in determining taxable value. (4) This value includes $8, 174,200 of new value from railroad operating property — brought onto the tax roles. 121 CITY OF FRIDLEY, MINNESOTA STATEMENT OF VALUATIONS AND LEVIES BY CLASSES OF PROPERTY DECEMBER 31, 1982 Assessed Valuation Assessed Before Valuation Assessed Contribution Contribution Value Class of to Metro Tax to Metro Tax Received from Property Pool Pool Metro Pool Commercial $ 32,994,525 $ (6,829,576) Industrial 55,853,476 (11,796,540) F. M. C. #85 4,528,660 (1,055,480) Gas 1 ,293,903 (310,435) Electric 2,587,806 (600,175) P. U.* 431,301 (103,478) Vacant Land 1,725,204 Apartments 22,427,651 Residential 93,807,962 "' Distribution (1) $11,355,678 Totals $215,650,488 $(20,695,684) $11,355,678 Notes *Public Utilities (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 78.803% of the actual assessed value. This taxable value is then multiplied by the ... applicable local mill rates. The balance of the assessed value is multiplied by the Metro Mill Rate of 94. 106. This money then goes into the Metro Pool. The City of Fridley received $178,533.97 from -- this pool. 122 -, Table 5 Assessed Valuation Allocated to Adjusted Percent Dollars Tax Increment Assessed of Total of City Financing Value City Tax Tax $ (271,307) $ 25,893,642 12.730 $ 371,816 44,056,936 21.659 632,616 3,473,180 1.707 49,858 983,468 .483 14,107 1,987,631 .977 28,536 327,823 .161 4,702 (21,747) 1,703,457 .837 24,447 (2,545,820) 19,881 ,831 9.774 285,478 (54,074) 93,753,888 46.090 1,346,194 11,355,678 5.582 163,039 $(2,892,948) $2034417,534 100.00 $2,920,793 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 to the County, and the County in turn distributes this to various local governments as part of the levy request. 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. 123 _ CITY OF FRIDLEY, MINNESOTA SIGNIFICANT MINNESOTA TAX POLICIES DECEMBER 31k 1982 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 valued by assessors at least once every four years. The Minnesota Department of Revenue analyzes sales of properties annually, comparing sales or market values 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" ($27,000 for taxes due in 1982) is assessed at 16%, the next 27,000 assessed at 22%, and the balance at 28%. The assessed value of a homestead residence with a market value of $54,000 would be $10,260 for taxes -- collectible in 1982 (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 40% of first $50,000 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 58% 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 gross property tax to household income: To the extent a homeowners income (1% for lower income groups, up to 4% for incomes of $100,000 or more), homeowners or renters may receive State credits up to $1,000 (combined homestead and income-adjusted credits). 125 ■ CITY OF FRIDLEY, MINNESOTA PROPERTY TAX RATES PER $1,000 OF ASSESSED VALUE AND TAX LEVIES ALL OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS Tax Rates School School School School District District District District Year City No. 11 No. 13 No. 14 No. 16 County 1973 12.71 Mills 54.92 Mills 49.88 Mills 52.54 Mills 56.01 Mills 21.77 Mills 1974 12.94 54.85 53.49 55.04 54.44 29.49 1975 14.88 60.19 54.12 60.33 66.05* 22.22 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 *Vocational/Technical District No. 916 included in District No. 16. **No Water Shed District in School District No. 11. This table reflects the new method of determining assessed valuations as required by 1971 legislation. This change results in an assessed valuation of approximately 29% of market value instead of approximately 11% under the previous formula. Year Tax Levies 1973 $1,214,927 $143,201 $1,108,087 $2,570,517 $1,182,508 $2,080,956 1974 1 ,390,598 211 ,658 1,332,878 3,001 ,552 1,314,940 2,201 ,959 1975 1 ,662,685 268,717 1,414,161 3,417,636 1,617,961* 2,482,854 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 *Includes Vocational/Technical District No. 916 126 '- Table 6 -- Totals Special School School School School Districts District District District District Total No. 11 No. 13 No. 14 No. 16 2.38** Mills 91 .78 Mills 86.74 Mills 89.40 Mills 92.87 Mills _. 2.89** 100.17 98.81 100.36 99.76 4.77** 102.06 95.99 102.20 107.92 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** 87.96 91 .48 89.83 106.58 4.36** 85.99 89.47 89.11 99.07 4.057** 91 .295 92.714 90.813 109.990 School Yearly Net Tax Total Total Local Percentage Contribution Increment Tax Tax Levies Increase To Metro Pool District Levies - $204,380 $ 8,544,576 5% $ 8,544,576 297,343 9,750,928 14% 9,750,928 520,369 11,384,383 17% 11,384,383 - 380,806 11,962,785 5% 11,962,785 454,078 13,275,511 11% 13,275,511 426,450 14,123,848 6% 14,123,848 -- 470,367 14,445,244 2% $ 922,702 15,367,946 542,080 15,397,663 7% 1,083,986 $ 85,221 16,566,870 718,810 16,120,826 5% 1,113,318 193,763 17,427,907 • 779,684 19,406,757 20% 925,052 304,517 20,636,326 127 "' Table 7 CITY OF FRIDLEY, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS -- LAST TEN FISCAL YEARS Ratio Ratio Total of of Outstand- Current Total ing Collec- Delin- Collec- Current - Current Current tions to quent tions to and Assess- Assess- Amount Assess- Current Delinquent Fiscal ments ments Due ments Total Levy Assess- _ Year Due Collected (Percent) Collected Collected (Percent) ments 1973 $697,797 $619,236 88.74 $ 87,793 $707,029 101 .32 $724,891 1974 913,497 742,105 81 .24 81 ,990 824,095 90.21 782,751 ,_ 1975 953,453 696,193 73.02 273,771 969,964 101.73 736,530 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 89.45 432,530 129 CITY OF FRIDLEY, MINNESOTA HISTORY OF TAX LEVIES AND MILL RATES LAST TEN FISCAL YEARS 1973 1974 1975 1976 Tax levies General Fund $1,075,464 $1,178,854 $1,624,144 $1,769,965 P.E.R.A. Fund 53,954 95,895 Fire Relief Association Fund 13,776 Police Pension Association Fund 49,992 75,723 General Debt Service Funds 67,200 39,200 38,400 37,500 ._ Capital Improvement Fund 46,596 Total $1,260,386 $1,389,672 $1,662,544 $1,854,061 Mill rate General Fund 10.84 10.97 14.53 14.09 P.E.R.A. Fund .54 .89 Fire Relief Association Fund .14 Police Pension Association Fund .51 .71 General Debt Service Funds .68 .37 .35 .30 Capital Improvement Fund .37 Total 12.71 12.94 14.88 14.76 Notes (1) Beginning in 1972, the value of inventories and fixtures was dropped. Cities were reimbursed by the State via other State Aids. (2) 1972 and subsequent valuations reflect changes as provided for in Laws of 1971 , Extra Session, Chapter 31 , amended. Beginning with taxes levied in 1972, collectible in 1973, Minnesota assessed values tripled through elimination of the 33 1/3 ratio previously used to arrive at "adjusted" market values. Tax rates are one-third of past rates. 130 Table 8 1977 1978 1979 1980 1981 1982 $1,974,563 $2,114,917 $2,264,856 $2,428,376 $2,684,615 $2,838,201 36,600 41 ,000 39,900 38,800 38,570 37,646 45,920 43,401 43,368 45,000 44,770 44,946 ._ $2,057,083 $2,199,318 $2,348,124 $2,512,176 $2,767,955 $2,920,793 14.18 14.47 14.52 14.795 15.248 13.876 "- .27 .28 .26 .237 .220 .183 .33 .30 .28 .274 .254 .219 14.78 15.05 15.06 15.306 15.722 14.278 (3) Property values include net amount allocated pursuant to Laws of 1971, Extra Session, Chapter 23, from Area-Wide "Pool." Beginning with taxes levied in 1974, collectible 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 Metro Tax Pool. 131 CITY OF FRIDLEY, MINNESOTA RATIO OF NET GENERAL BONDED DEBT TO AssSs D VALUES AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS Deduct Debt Special Service Assessment, Fiscal Assessed Gross Monies Revenue and Year Population Value Bonded Debt Available BRA Bonds .. 1973 31,143 $ 95,588,238 $9,852,000 $63,181 $9,442,000 1974 32,542 107,465,059 8,885,000 42,898 8,525,000 1975 32,486 111,739,609 9,385,000 45,519 9,050,000 1976 31,570 125,693,024 8,210,000 49,081 7,900,000 1977 31,940 139,227,266 6,775,000 51 ,125 6,490,000 1978 33,450 146,282,224 6,385,000 60,363 6,125,000 1979 32,664 155,954,819 6,545,000 64,761 6,315,000 1980 30,228 164,223,022 6,105,000 69,888 5,905,000 1981 30,200 176,260,691 8,954,000 77,210 8,784,000 1982 29,920 203,417,534 9,160,000 82,373 9,020,000 132 '^ Table 9 Ratio of Net Bonded Debt To Net General Net General Assessed Bonded Debt Bonded Debt Values Per Capita ^ $346,819 .36 11.14 317,102 .30 9.74 289,481 .26 8.91 260,919 .21 8.26 233,875 .17 7.32 199,637 .14 5.97 165,239 .11 5.06 130,112 .08 4.30 92,790 .05 3.07 57,627 .03 1.93 133 Table 10 CITY OF FRIDLEY, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN ., DECEMBER 31, 1982 Assessed Value $215,650,488 (A) Debt Limit 6.667 Percent of Assessed Value $14,377,418 Amount of Debt Applicable to Debt Limit: Total Bonded Debt $9,160,000 (B) Deductions: General Debt Service Fund Assets $ 82,255 Tax Increment Redevelopment Bonds 3,425,000 ., Special Assessment Bonds 5,325,000 Water Revenue and Improvement Bonds 270,000 9,102,255 Total Amount of Debt Appicable to Debt Limit 57,745 Legal Debt Margin $14,319,673 Notes (A) M.S.A. Section 475.53 (see following page) (B) M.S.A. Section 475.51 (see following page) 134 CITY OF FRIDLEY, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED) YEAR ENDED DECEMBER 31, 1982 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 6.67 percent of the assessed value." Note (B): - M.S.A. Section 475.51 Definitions NMI "Subdivision 4. "Net Debt" means the amount remaining after deducting from its gross debt the amount of current revenues which are applicable within the current fiscal year to the payment of any debt, and the aggregate of the principal of the following: (1) Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially benefited thereby, including those which are general obligations of the municipality issuing them, if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments. (2) Warrants or orders having no definite or fixed maturity. (3) Obligations payable wholly from the income from revenue producing conveniences. (4) Obligations issued to create or maintain a permanent improvement revolving fund. (5) Obligations issued for the acquisition, and betterment of public waterworks systems, and public lighting, heating or power systems, and 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." 135 Table 11 CITY OF FRIDLEY, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT AND COMPARATIVE DEBT RATIOS DECEMBER 31, 1982 % 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 $ 9,160,000 $ 2,286,509 $ 6,873,491 100.000 $ 6,873,491 Overlapping debt: School Districts No. 11 $ 20,905,000 $ 2,876,630 $ 18,028,370 2.023 $ 364,714 No. 13 2,625,000 1,848,509 776,491 32.186 249,921 No. 14 2,481 ,000 483,950 1 ,997,050 100.000 1,997,050 No. 16 11,336,441 3,254,178 8,082,263 42.422 3,428,658 Metro Transit 20,050,000 3,304,000 16,746,000 1.721 288,199 Metro Council 270,460,000 26,426,215 244,033,785 1.581 3,858,174 Anoka County 6,545,000 1,310,892 5,234,108 20.750 1 ,086,077 Vocational/Technical District No. 916 4,980,000 391 ,361 4,588,639 2.784 127,748 Overlapping debt 339,382,441 39,895,735 299,486,706 11,400,541 Total direct and overlapping debt $348,542,441 $42,182,244 $306,360,197 $18,274,032 136 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 1973 $65,000 $ 14,620 $ 79,620 $2,341 ,081 .0340:1 1974 25,000 12,685 37,685 2,520,672 .0150:1 1975 25,000 11,885 36,885 2,899,724 .0127:1 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 .0324:1 137 Table 13 CITY OF FRIDLEY, NINDESOTA. MENUS BOND COVERAGE YATNROORLS BONDS LAST TEN FISCAL. TEARS Net revenue Direct Direct available Fiscal operating operettas for debt Debt service requirements ., year revenue exRenset service principal Interest Total Coverage 1973 $1,024,475 $ 824,166 $ 200,309 $15,000 $17,700 $32,700 6.1 1974 1,145,027 873,040 271,987 15,000 17,025 32,025 8.5 1975 1 ,169,260 1,000,918 168,342 15,000 16,350 31,350 5.4 1976 1,286,963 1,108,130 178,833 61,607 22,482 84,089 2.1 1977 1,276,196 1,139,152 137,044 46,607 16,265 62,872 2.2 1978 1 ,404,459 1,299,988 104,471 51 ,724 13,361 65,085 1.6 -■ 1979 1 ,394,580 1,237,504 157,076 51 ,724 10,331 62,055 2.5 1980 1 ,477,709 1,376,970 100,739 56,964 7,207 64,171 1.6 1981 1 ,560,081 1,681,670 (121,589) 57,750 4,015 61,765 - 1982 1 ,753,918 1,767,818 (13,900) 47,500 1,229 48,720 - 138 Table 14 CITY OF FRIDLEY, MINNESOTA DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Fiscal Per Capita Median School Unemployment year Population (1) Income (2) Age (4) Enrollment (3) Rate (5) 1973 31,143 4,644 (3) 22.6 9,220 3.4 1974 32,542 5,141 22.7 8,983 3.5 1975 32,486 5,667 (3) 22.9 8,712 5.2 1976 31,570 6,193 (3) 25.1 8,339 5.1 1977 31,940 6,721 (3) 25.4 7,750 4.0 1978 33,450 6,980 (3) 25.9 7,119 2.7 1979 32,664 7,239 (3) 26.2 6,666 2.8 1980 30,228 (2) 8,654 27.4 (2) 6,331 4.4 (2) — 1981 30,200 8,700 (3) 27.7 (3) 5,915 4.7 1982 29,920 8,750 (3) 28.0 (3) 5,595 6.6 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 139 Table 15 CITY OF FRIDLEY, MINNESOTA CONSTRUCTION, BANK DEPOSITS AND PROPERTY VALUE LAST TEN FISCAL YEARS —' Commercial Residential Construction Construction Property Value' Number Number Bank (1) Total Fiscal of of Deposits Taxable Non- Market year units Value units Value (thousands) Property Taxable (2) Value 1973 58 $ 4,482,184 326 $3,094,705 $10,599 $282,526,823 $ 29,418,855 $311,945,678 1974 67 4,354,649 321 3,574,817 11,002 311 ,738,949 29,418,855 341 ,157,804 -, 1975 50 4,683,913 411 4,680,199 12,760 343,577,630 63,489,810 407,067,440 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 57 5,498,098 305 3,012,844 22,875 772,714,552 110,559,039 883,273,591 Source: (1) Fridley State Bank, Annual Financial Statement (2) Non-Taxable property is reevaluated by the county assessors every six years. • Estimated Market Value 140 Table 16 CITY OF FRIDLEY, MINNESOTA PRINCIPAL TAXPAYERS DECEMBER 31, 1982 1982 Percent Estimated of Total Market Assessed Rank Taxpayer Type of Business Value Valuations 1. Medtronics, Inc. Electro-medical devices $ 18,598,500 8.62 2. Onan Corporation Portable electric generators 17,172,500 7.96 3. FMC Corporation Naval ordinance 15,881,000 7.37 4. Target Stores Discount store and warehouse 11 ,315,800 5.25 5. Maurice Fillister Georgetown apartments 8,740,700 4.05 6. LaMaur, Inc. Cosmetics 6,720,300 3.12 7. Five Sands Development Meadowrun Apartments 5,246,000 2.43 8. Midland Cooperatives Warehousing oil and grain products 5,149,900 2.39 9. Carter-Day Air control equipment 4,767,600 2.21 10. Holiday Village Discount department store 4,739,400 2.20 11. Black Forest Apartments Apartments 4,319,000 2.00 ... 12. Pillsbury Totino's Frozen foods 4,182,900 1.94 13. Rice Creek Townhouses Townhouses 3,990,400 1.85 14. Honeymead Products Linseed oil and grain products 3,923,100 1.82 15. Wickes (Twin Stores) Discount furniture show/warehouse 2,763,300 1.28 Total $117,510,400 54.49 * Before contribution to Metropolitan Tax Pool 141 CITY OF FRIDLEYL MINNESOTA INSURANCE COVERAGE DECEMBER 31, 1982 All risk, direct physical loss coverage Buildings and contents (except liquor store and stock) - 90% co-insurance $ 7,170,269 Liquor store 6289 Highway #65 152,322 Personal property (liquor stores) 71,020 Boiler insurance 500,000 Contractor's equipment, including miscellaneous property of $78,260 355,431 Signs 16,148 _. General liability Bodily injury Each occurance 500,000 Aggregate 500,000 Property damage Each occurance 100,000 Aggregate 100,000 Excess liquor liablity Each occurance 500,000 Aggregate 500,000 Loss of business income, liquor stores 149,460 Umbrella liability 1,500,000 Automobile liability Bodily injury Each person 250,000 Each occurance 500,000 Property Damage 100,000 Comprehensive and collision Passenger vehicles Actual cash value Other vehicles Actual cash value Police officer's liability Combined single liability 500,000 Punitive damages 25,000 Accidental death and dismemberment 10,000 Foundation for the Islands of Peace Building 150,000 Contents 25,000 Miscellaneous small tools 4,595 Hired and non-owned auto Bodily injury 250,000 Each person Each occurance 500,000 Property Damage 100,000 ^' Money and securities, inside and outside premises, all locations 15,000 Workers' compensation Statutory Public officials' liability 1 ,000,000 PRINCIPAL OFFICIALS' BONDS DECEMBER 31, 1982 Nasim M. Qureshi City Manager $50,000 Sidney C. Inman City Clerk 1,000 Treasurer 50,000 BRA 50,000 All employees are covered by a blanket of faithful performance bond of $100,000 142 CITY OF FRIDLEY, MINNESOTA CITY CAPITAL IMPROVEMENT mum= POLICY DECEMBER 31, 1982 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 Serer Improvements Water and sewer lateral improvments 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, 1982 was $140,000. 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 balance in this fund on December 31, 1982 was $1,197,517. The purpose of the fund is to finance capital outlay items normally financed through the General Fund. No purchases have been made through this fund to date. Revenue Sharing The General Fund is used as the vehicle for budgeting and expenditure of Revenue Sharing monies. In 1982, 33% of Revenue Sharing funds were used for capital outlay items, 23% for other expenses and 44% for personal services. 143 CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION DECEMBER 31, 1982 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 Aa1 Elections Last Election - Federal, State and Ward 2 November 2, 1982 Registered voters 17,019 Number of votes cast 12,869 Percent (%) of registered voters voting 75.6% Population 1950 Federal Census 3,796 1960 Federal Census 15,182 1965 Special 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 -- Permanent Employees--As of December 31 Number 1970 115 1971 105 1972 109 1973 118 1974 123 1975 130* 1976 129* 1977 148* 1978 141* 1979 122 ,... 1980 126 1981 129 1982 123 *Includes CETA 144 — CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL =PORTION (CONTINUED) DECEMBER 31. 1982 Fire protection Number of stations 1 Volunteer Firefighters 27 Full-time Firefighters 5 Fire rating Class 4 Police protection Number of stations 1 _. Number of sworn officers 32 Number of street lights 927 Number of traffic signal installations 29 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 122.32 Trunk highways 10.8 County roads 16.82 -" Sidewalks 9.5 Miles of sewer Storm 37.97 Sanitary 99.73 Miles of water mains 104.12 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 , 1981 7,872 Connections Daily average consumption (gallons) 4.4 million gallons Elevated storage capacity , .5 million gallons Number of fire hydrants 1,014 Municipal Sewer System Disposal--through Metropolitan Waste Control Commission Number of connections December 31, 1981 7,978 Average daily flow (includes infiltration/inflow) 3.13 million gallons 145 CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED) DECEMBER 31, 1982 Parks and Recreation Areas Developed 425 Acres -, Undeveloped 125 Acres Total 550 Acres ,_ City Parks Schools Total Number of: Hockey rinks 10 0 10 General skating rinks 17 0 17 Playgrounds 29 9 38 Swimming beaches 1 0 1 Swimming pools 0 1 1 Wading pools 0 0 0 Picnic grounds 2 0 2 Day camp sites 1 0 1 Baseball diamonds 1 4 5 —. Softball diamonds 22 16 38 Outdoor basketball courts 21 13 34 Tennis courts 23 17 40 Horseshoe courts 16 0 16 Archery ranges 1 0 1 Permanent playground buildings 0 0 0 Permanent picnic shelters 9 0 9 Soccer fields 4 2 6 Football fields 4 9 13 146 CITY OF FRIDLEY, MINNESOTA GENERAL INFORMATION DECKER 31, 1982 Location - Transportation The City of Fridley, with a total land area of eleven square miles and an estimated population of 29,920, 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. .. Larger Employers Larger employers in the City include: No. of Employer Product or Service Employees FMC Corporation Pumps and naval ordinance 3,600 Medtronics, Inc. Electro-medical devices and hdqtrs. 2,212 Burlington Northern Railroad Northtown Yard 2,100 Onan Corporation Portable generators, electronic 1,900 equipment Unity Hospital Medical services 1 ,200 _ Target Stores, Warehouse Discount store and warehouse 750 Totino's Finer Foods Frozen foods 460 Carter-Day Company Air control equipment 400 Kurt Manufacturing Machine parts 400 LaMaur, Inc. Cosmetics 398 Holiday Village North Discount department store 320 Independent School District #14 Fridley School District 315 .- Minco Products, Inc. Electronic devices 280 Barry Blower Manly Company Air moving devices 250 Holly Shopping Center Retail and service establishments 200 Safetran Systems Corporation Railroad accessories 225 Midland Cooperatives Warehousing and oil blending plant 150 Strite-Anderson Manufacturing Aluminum die castings 130 Honeymead Products Linseed oils 125 Longview Fiber Company Packaging supplies 116 Dealers Manufacturing Company Remanufacturing auto parts 109 Webb Printing (under const.) Printing TV Guide 100 147 CITY OF FRIDLEY, MINNESOTA GENERAL INFORMATION (CONTINUED) DECEMBER 31, 1982 Medical Facilities Medical facilities in Fridley include Unity Hospital, a 275-bed hospital, and fl the adjacent Unity Professional Building. Other facilites include Fridley Convalescent Home, Fridley Medical Center and Lynwood Manor nursing home. -. Education Fridley is served by four school districts, with a major portion located within Fridley Independent School District No. 14. The Fridley School District operates three elementary schools, a junior high, and senior high school employing 143 certified classroom teachers in the education of about 3,245 students. Totino-Grace Parochial High School has an enrollment of 1 ,015 students. Portions of the Columbia Heights School District (13) , Spring Lake Park School District (16) , and Anoka/Hennepin School District (11) also lie within the City of Fridley. These districts have an enrollment of 2 , 350 students living within the City of' Fridley. — Colleges, universities, vocational-technical and specialized training schools are located throughout the metropolitan area within easy commuting distances of Fridley. 148.