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1981 CAFR INIIINNIq%rI II/N I III. Ip1I INIA IN Y Y''/-' OW III.%-r _-`I'II/I INI.q -/ ..I IIV/ NI 212121112/22/22122122 /qIN I .IIINIINgq II"II N.H NINIIIINNN/II 2 2V 22"""' I, -Aq % CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT DECEMBER 31, 1981 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 YEAR ENDED DECEMBER 31, 1981 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 ("Liftable" General Purpose Financial Statements) Combined Balance Sheet - All Fund Types and Account Groups A-1 28 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds A-2 32 Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and _ Actual-General, and Special Revenue Fund Types A-3 34 Combined Statement of Revenues, Expenses, and Changes in Retaining 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 55 Statement of Revenue, Expenditures, and Changes in Fund Balance - Budget and Actual B-2 56 Statement of Revenues and Other Financing Sources - Budget and Actual B-3 57 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1981 TABLE OF CONTENTS (CONTINUED) EXHIBIT PAGE Statement of Expenditures and Other Financing _.. Uses - Budget and Actual B-4 59 Special Revenue Funds: Combining Balance Sheet C-1 64 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances C-2 66 Municpal State Aid Fund: -- Comparative Balance Sheet C-3 68 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual C-4 69 Revenue Sharing Fund: -- Comparative Balance Sheet C-5 70 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual C-6 71 Cable TV Fund: Comparative Balance Sheet C-7 72 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual C-8 73 Home Ownership Fund: .� Comparative Balance Sheet C-9 74 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual C-10 75 Debt Service Fund: Comparative Balance Sheet D-1 77 Statement of Revenues, Expenditures, and Changes in Fund Balance D-2 78 .� CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1981 _ TABLE OF CONTENTS (CONTINUED) EXHIBIT PAGE Capital Projects Funds: Combining Balance Sheet E-1 80 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance E-2 82 Special Assessment Funds: Combining Balance Sheet F-1 87 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance F-2 88 Enterprise Funds: Combining Balance Sheet G-1 89 Combining Statement of Revenues, Expenditures, and Changes in Retained Earnings G-2 90 Combining Statement of Changes in Financial Position G-3 91 Liquor Fund: Comparative Balance Sheet G-4 92 Comparative Statement of Revenues, Expenses, and Changes in Retained Earnings G-5 93 Comparative Statement of Changes in Financial Position G-6 94 Public Utilities Fund: Comparative Balance Sheet G-7 96 Comparative Statement of Revenues, Expenses, and Changes in Retained Earnings G-8 98 Comparative Statement of Changes in Financial Position G-9 99 Christenson Building Fund: Comparative Balance Sheet G-10 100 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1981 TABLE OF CONTENTS (CONTINUED) EXHIBIT PAGE Comparative Statement of Revenues, Expenses, and Changes in Retained Earnings G-11 101 Comparative Statement of Changes in Financial Position G-12 102 Internal Service Fund: Comparative Balance Sheet H-1 103 Comparative Statement of Changes in Revenues, Expenses, and Changes in Retained Earnings H-2 104 -- Comparative Statement of Changes in Financial Position H-3 105 Trust and Agency Fund: Comparative Balance Sheet I-1 107 Comparative Statement of Changes in Revenues, Expenses, and Changes in Fund Balance 1-2 108 ., General Fixed Asset: Comparative Statement of General Fixed Assets J-1 109 r Schedule of General Fixed Assets - By Function and Activity J-2 110 Schedule of Changes in General Fixed Assets - By Function and Activity J-3 112 ., General Long-Term Debt: Comparative Statement of General Long-Term Debt K-1 113 TABLE PAGE STATISTICAL SECTION General Governmental Expenditures by Function - Last Ten Fiscal Years 1 115 General Revenues By Source - Last Ten Fiscal Years 2 116 '^ Property Tax Levies and Collections - Last Ten Fiscal Years 3 117 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1981 TABLE OF CONTENTS (CONTINUED) TABLE PAGE _ Assessed and Estimated Market Value of All Taxable Property - Last Ten Fiscal Years 4 118 Statement of Valuations and Levies By Classes of Property 5 120 Significant Minnesota Tax Policies 122 Property Tax Rates Per $1,000 of Assessed Value and Tax Levies - All Overlapping Governments - Last Ten Fiscal Years 6 124 Special Assessment Levies and Collections - Last Ten Fiscal Years 7 126 History of Tax Levies and Mill Rates - Last Ten Fiscal Years 8 128 Ratio of Net Bonded Debt to Assessed Value and Net Debt Per Capita - Last Ten Fiscal Years 9 130 Computation of Lebal Debt Margin 10 132 Computation of Direct and Overlapping Bonded Debt and Comparative Debt Ratios 11 134 Ratio of Annual Debt Service Expenditures for _ General Bonded Debt to Total General Government Expenditures - Last Ten Fiscal Years 12 135 Revenue Bond Coverage - Last Ten Fiscal Years 13 136 Demographic Statistics - Last Ten Fiscal Years 14 137 .� Property Value, Construction, and Bank Deposits - Last Ten Fiscal Years 15 138 Principal Taxpayers 16 139 Insurance Coverage 140 City Capital Improvement Financing Policy 141 Miscellaneous Statistical Information 142 General Information 145 INTRODUCTORY SECTION a a 4 a MEI CITY OF FRIDLEY, MINNESOTA ELECTED AND APPOINTED OFFICIALS DECEMBER 31, 1981 ELECTED OFFICIALS Term of Office Expires December Mayor William J. Nee 1983 Councilmember At Large Robert L. Barnette 1983 Councilmember, Ward I Cheryl Lee Moses 1981 Councilmember, Ward II Dennis L. Schneider 1982 — Councilmember, Ward III Edward J. Fitzpatrick 1981 Effective January 1982 -� Mayor William J. Nee 1983 Councilmember At Large Robert L. Barnette 1983 Councilmember, Ward I Edward Hamernik 1984 — Councilmember, Ward II Dennis L. Schneider 1982 Councilmember, Ward III Edward J. Fitzpatrick 1984 — APPOINTED OFFICIALS - City Manager - Nasim M. Qureshi City Attorney - Virgil C. Herrick Prosecuting Attorney - Carl Newquist City Clerk/Treasurer - Sidney C. Inman Department He ads: 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 Re source - Charles A. Boudreau - Director of Central Service - Sidney C. Inman ... Division Heads: City Planner - Jerrold Boardman Finance Officer - Richard Pribyl Public Works Superintendent - Ralph S. Volkman Chief Building Official - Darrel G. Clark City Assessor - Mervin Herrmann — Liquor Stores Manager - Robert L. McGuire 1 City of Fridley Minnesota CITY ADMINISTRATIVE CITY MANAGER PersonnellOfficer/Admin. Asst. Management Analyst --City Manager's Secretary Economic Dev. Asst. Clerk Typist PARKS AND PUBLIC WORKS (39) RECREATION (13) Public Works Director Parks and Recreation Director Operations Analyst Parks l8 Rec. Public Works Secretary Secretary Naturalist/Resource Engineering Div. (4) Code Enforcement Division (4) Coordinator Asst. P.Wks. Director Chief Building Official Interpretive Spec. _, Engineering Tech. Environmental Officer Recreation Supv. Eng. Aide/Admin. Plumbing Inspector Program Supv. Eng. Aide/Inspection 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) Clerk/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 (129) Director Central Services/Clerk Treasurer Finance Officer I 1 General IA ccountant Sr. Util Billg Clk Purchasing Agent Record Spec/Dpt C.Clk Payb/Data Proc Clk Sr. Assess. Clerk Clerk-Purchasing Word Processing Opr. Acctg/Data Proc Clk Custodian 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. .-. 4 Police Technicians 4 Office Assistants Liquor'Division Property/Tax Division Liquor Store Manager(4) Assessor (4) Asst. Liquor Store Mgr. 2 Appraisers Head Liquor Store Clerk Tax Assess. Clerk Liquor Store Clerk • Human Services Asst. Fully funded through federal and state funds (--)= Number of full time employees 3 - ' CITY OF FRIDLEY 6431 UNIVERSITY AVENUE N.E., FRIDLEY, MINNESOTA 55432 TELEPHONE ( 612)571-3450 June 14, 1982 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, 1981. 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 and 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 OMR 5 CITY OF FRIDLEY 8431 UNIVERSITY AVENUE N.E, FRIDLEY, MINNESOTA 55432 �'. June 14, 1982 TELEPHONE ( 612)571.3450 10■ Mr. Nasim M. Qureshi, City Manager Mayor William J. Nee and Council Members Fridley, Minnesota 55432 Dear Mr. Qureshi, Mayor Nee and Council Members: 01 The Comprehensive Annual Financial Report of the City of Fridley, Minnesota, for the fiscal year ending December 31, 1981, 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 Accountants, 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 1980. It is my belief that the accompanying fiscal year 1981 financial report continues to meet program standards and it will be submitted to the Municipal Finance 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, the combining and individual fund statements, 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 BUDGETORY 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 fund and the accrual basis of accounting is utilized for the proprietary type funds, as defined in the notes to the financial statements. In developing and improving the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolete, asssurance 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 catagory level . Budget adjustments between City divisions are made upon approval of a resolution by the City Council. The City Charter provides that the City Council shall not have power to increase the total amount of the budget , whether by insertion of new items or otherwise, beyond the estimated revenue unless the actual revenue exceeds such revenue estimates, and in that event not beyond such actual revenue. There is a constant review process. Expenditures are not approved until it has been determined that 1) adequate funds have been appropriated , 2) the expenditure is necessary, and 3) funds are available. THE CITY AND IT' S SERVICES The funds included in this comprehensive annual financial report are controlled by or dependent on the City of Fridley. Determination of "controlled by or dependent on" is based on criteria developed by the Federal Bureau of the Census. The criteria deal with existence as an organized entity, governmental character, and substantial autonomy. Based on these criteria the various funds and account groups, which are all the fund and account groups of the City shown in the table of contents, are included in this report . 8 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. DEBT ADMINISTRATION Net bonded debt per capita, and the percentages of the net debt to assessed value and to market value are useful indicators of the City's debt position. Debt statistics for the City as of December 31, 1981 are as follows: Percent of Percent of Debt per Amount Assessed Value Market Value Capita Net direct debt $2,695,365 1.42 .419 89.25 Net direct debt is based on Fridley's outstanding indebtedness less cash and investments on hand. �.. On February 1, 1981, $2,200,000 of General Obligation Tax Increment Redevelopment Bonds were sold at a interest rate from 7.10% to 9.00%. The issue will be fully retired February 1, 1999 and will be paid for by funds -- generated from the tax increment district. On April 14, and December 15, 1981, a total of $1,439,000 of Temporary Improvement Bonds were sold at an interest rate of 8%. During 1981, $790,000 of Bonds were retired leaving the total outstanding indebtedness for the City on December 31, 1981 at $8,954,000. Below is a table of bonds issued since January 1, 1962. Remaining Date of Years Interest Issue Amount of Issue Rate 1981 $2,200,000 17 7.10 - 9.00% 1981 1,439,000 3 8.00% 1980 265,000 2 8.00% 1980 1,755,000 14 7.25 - 8.50% 1977 765,000 7 3.10 - 4.90% 1976 675,000 8 3.75 - 6.00% 1975 28 5,000 7 6.00% •• 1972 750,000 12 3.80 - 5.30% 1967 170,000 6 4.20 - 4.50% 1965 120,000 4 3.20 - 3.50% 1965 170,000 4 3.20 - 3.50% 1965 320,000 6 3.20 - 3.50% 1963 35,000 1 3.20 - 3.80% 1962 5,000 1 3.10 - 3.80% ` $8,954,000 9 During 1981, the City was notified that Moody's Investor Service had assigned a bond rating of Aal from Aa which the City has held since May 16, -- 1977. As of December 31, 1981, the City had issued $23,225,000 in Industrial Revenue Bonds which are permitted under Minnesota Statutes, Chapter 474. Listed below are the bond issues: Company Date of Issue Amount ...� Safetrans 03/21/77 $ 1,500,000 Perlman Rocque 05/07/79 2,500,000 Medtronics 11/05/79 1,000,000 Simer Pump 06/02/80 700,000 G.T.A. 10/20/80 6,000,000 Win-Stevens Datsuns, Inc . 01/12/81 675,000 WWH Properties 11/23/81 1,250,000 Webb Company 12/14/81 9,600,000 $23,225,000 CASH MANAGEMENT All temporary cash surpluses during the year are invested in various securities which State statues permit. Investment yields ranged from 7.00% to 17.5% during the year. The 1981 earnings were distributed to the following fund types: General $ 311,544 Special Revenue 174,198 Debt Service 5,401 Capital Projects 148,837 Special Assessments 740,269 Enterprise 426,865 Internal Service 11,585 Expendable Trust 2,445 $1,821,144 ... The following is a summary of earnings for the past three years: Year Earnings 1979 $ 871,757 1980 $1,249,913 1981 $1,821,144 10 FISCAL DISPARITIES The State Legislature enacted a "Fiscal Disparity Law" in 1971 which was not implemented until 1975 due to a constitutional challenge. The law provides for the "pooling" of 40% of all new commercial and industrial property valuations in the seven-county metropolitan area. In turn, valuation from this "pool" is to be redistributed to taxing jurisdictions according to specific criteria. Although it is impossible to determine the future impact of the "Fiscal Disparity Law' on the City of Fridley, the law had the effect of reducing the City's taxable valuation by $10,022,598 for taxes collectible in 1981. 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 s 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 $2,708,711 for taxes collectible in 1981. N.4 W. W. r 11 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 $5,956,768, an increase of $740,085 from 1980. Also expenditures (including transfers) for the General Fund totaled $5,506,442, an increase of $579,539 over the previous year. The fund balance increased by $450,326 and was $3,407,003 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. The following table shows the beginning-year General Fund balances as compared to the adopted budget of the previous year. Fund Balance -- General Beginning of Year Fund Budget Amount % of Budget 1977 $3,581,342 S1,190,531 33.2 1978 3,962,664 1,357,779 34.3 1979 4,351,005 1,835,116 42.2 1980 5,664,208 2,666,897 47.1 '^ 1981 6,101,166 2,956,677 48.5 1982 6,070,894 3,407,003 56.1 The amount of revenue from various sources and the changes from the previous year are shown in the following table. ►r Increase 1980 Percent (Decrease) Revenue Source Amount of Total from 1979 General property taxes $2,085,759 35.0 $141,837 License and permits 192,347 3.2 (36,801) Intergovernmental revenue 2,583,580 43.4 528,673 .-. Charges for current services 129,887 2.2 21,340 Fines and forfeits 119,428 2.0 16,415 Interest on investments 311,544 5.2 19,970 Miscellaneous 74,223 1.3 15,234 Transfers 460,000 7.7 33,417 Total revenue $5,956,768 100.0% $740,085 General property taxes accounted for 35.0% of the General Fund revenues and ^ current tax collections were 90.41% of the total tax levy for the year 1981. Intergovernmental revenues accounted for 43.4% of the revenues compared to 39.4% the previous year. The increase in intergovernmental revenue came primarily from the state homestead credit. 12 Increases in levels of expenditures for major functions of the City over the preceding year are shown in the following table: Increase 1981 Percent (Decrease) Expenditures by Function Amount of Total from 1980 General government $ 725,095 13.2 $106,880 Public safety 1,994,788 36.2 338,282 Civic center 137,976 2.5 9,181 Public works 1,427,087 25.9 423,065 Parks and recreation 1,087,811 19.8 248,540 Debt service 16,030 .3 -0- Transfers 117,655 2.1 (546,409) Total expenditures $5,506,442 100.0% $579,539 --� Adjusted assessed valuations of $176,260,691 represented an increase of 10% over the preceding year. Part of the increase in assessed valuation was due to a court ruling declaring the concept of limited market value unconstitutional. To comply with this ruling the legislature moved to eliminate this concept during 1980 and 1981. The mill rates by purpose for these fiscal years is as follows: Purpose 1981 1980 General Fund 15.248 14.795 General Debt Service .220 .237 Capital Improvement .254 .274 Total Tax Rate 15.722 15.360 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 collections 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 13 construction funds received from the State of Minnesota plus the special assessments levied less the cost of the project. This excess is transferred back to the Municipal State-Aid Fund where the funds are earmarked for seal coating projects or the City's share of sidewalk or street improvement projects. The fund balance at December 31, 1981 was $1,191,929 which was an increase .� from the previous year of $180,499. Revenues totaled $370,864, which is the combination of State Aid and interest earned on the cash held in this fund. The State Aid portion of the revenues increased from the previous year by $110,990. The expenditures from this fund were in the form of transfers to other funds and decreased this year by $98,890. 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 1981 was $212,074 which was A decrease from 1980 of $8,780. Revenue Sharing funds are transferred from the Revenue Sharing Fund to the General Fund where the detailed amounts are budgeted. During 1981, transfers of these types totaled $245,000. The fund balance at December 31, 1981 was $144,786, which represents a increase of $97 from 19 80. Cable TV Fund The Cable TV was set up in 1981 to segregate funds received from the cable TV provider. These funds consist of 5% of the total amount of money paid to the cable TV provider for subscriptions. This is used to finance the city's administration of the cable TV franchise. These revenues during 1981 amounted to $41,554, plus interest earnings of $3,093. This left the fund balance at December 31, 1981 at $44,647. Home 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 1981 totaled 3,570 which was a decrease of $93,121 from 1980. The objective of this fund has now been completed and is in its close-out stages. There were no expenses in 1981 and at December 31, 1981, this fund ended with a zero balance. 14 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 a tax increment area provide the necessary revenue. During 1981, revenues amounted to 43,988, of which $29,915 was from property tax collections. The City has two general obligation issues outstanding which are carried in this fund. There is a $500,000 issue for the Civic Center dated May 1, 1965, and a $2,200,000 issue for a tax increment redevelopment area established in 1980. On December 31, 1981, $170,000 was outstanding on the Civic Center bond issue and $2,200,000 on the Tax Increment bond issue. The Debt Service Fund balance at December 31, 1981 was $76,953. CAPITAL PROJECTS FUNDS Purpose Capital Project Funds receive and disburse monies used for acquisition of •. capital facilities other than those financed by Special Assessments and Enterprise Funds. Capital Improvement Fund This fund was established to account for the revenue and expenditures of a revolving type Capital Improvement Fund. During 1980 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 moneys 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. At December 31, 1981 the fund balance was $1,038,321. 15 Is lands of Peace This fund was established to account for the Islands of Peace Project. A $150,000 grant had been received from the State of Minnesota for the purpose of constructing a shelter building during the prior year. During 1981, expenditures exceeded revenues by $1,559 thus reducing the fund balance to zero. • North Park Fund This fund had been established to account for the special North Park Project . The North Park area is currently being 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 residual fund balance of $244 was transfered to the North Park Visitation Center Fund in 1982. North Park Visitation Center Fund This fund was set up to account for the receipts and disbursements relating to the construction of a Visitation Center Building in North Park. A substantial portion of the project was completed last year. In 1981, land sales, donations and investment income amounted to $153,379 with expenditures of $75,859 resulting in an ending fund balance of $97,187. Sears Fund This fund was set up to account for the receipts and disbursements relating to the purchase of park land formerly owned by Sears Roebuck. The City received a State grant of $75,591 in 1981 for the purchase of the property. Additional revenue in the amount of $18,106 was received as "^ interest on cash, and $175,000 as donations. The fund balance at year end was $327,309. University Avenue Bike/Walkway Fund The City received a participating grant from the State to construct a bike/walkway that would connect major parks within the City. Revenues this year were in the form of grants from the State the amount of which was $34,966. Expenditures for the trail were $33,008 thus leaving a ending fund balance of $165. 16 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 improvements 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 fund balance increased during 1981 by $1,492,069. ori 17 ENTERPRISE FUNDS Purpose Enterprise funds account for the financing of services to the general public in which all or most of the cost 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, the municipal liquor stores and the operation of a small shopping center. Except for ownership, Enterprise Funds bear a close resemblance to privately owned utility or service enterprises. 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 1981, 1980, 1979, 1978, and 1977. 1981 1980 1979 1978 1977 Sales $1,743,846 $1,661,818 $1,461,144 $1,323,462 $1,160,937 Gross profit 344,681 333,245 275,862 260,941 228,106 Net profit 192,975 171,285 117,404 119,607 98,681 Transfers to the General Fund $ 90,000 $ 85,000 $ 85,000 $ 85,000 $ 85,000 Retained earnings of the Municipal Liquor Fund were $963,609 on December 31, 1981, compared to $860,634 on December 31, 1980. 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 $320,000 for this bond issue was outstanding on December 31, 1981. Although deferred tax levies are 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. 18 The receivable from the Metropolitan Waste Control Commission of $396,034 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. OMI 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. 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, 1981 were $4,341,448 compared to $4,080,709 on December 31, 1980. .., Shown below is a summary of operations of the Public Utility Fund for the years 1981, 1980, 1979, 1978, and 1977. 1981 1980 1979 1978 1977 Operating income $1,560,081 $1,477,709 $1,397,400 $1,404,459 $1,276,196 Operating expenses 1,681,670 1,376,970 1,237,212 1,299,988 1,139,152 Operating income $ (121,589) $ 100,739 $ 160,188 $ 104,471 $ 137,044 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 O.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 IMO 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 redevelopment. The City has recently 19 demolished the building and this piece of property was sold the Fridley BRA and will be developed in the future by that agency. 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 1981, charges for services exceeded benefit payments by $113,682. The fund balance as of December 31, 1981 was $313,477. TRUST AND AGENCY FUNDS Trust and Agency Funds account for assets held by the City as a trustee or agent for individuals, private organizations, and other governmental units. The 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 for December 31, 1981 is $4,939. .. 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 piece of property must possess three attributes: 1) it must be tangible in nature, 2) it must have a life longer than the fiscal year, and 3) it must be of significant value. GENERAL LONG TERM DEBT 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 20 separate self-balancing group of accounts entitled "General Long Group of Accounts." The group includes (in addition to conventional term debt) general 0.• obligation bonds, time warrants and notes which have a maturity of more than one year from 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. P.M 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 Retirement 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. INDEPENDENT AUDIT Section 7.13 of the City Charter requires an annual audit to be made of the books of account, financial records and transactions of all administrative departments of the City by a certified public accountant or the State Auditor's Department of the State of Minnesota. This requirement has been complied with and the opinion of the George M. Hansen Company P.A. , Certified Public Accountants, is included with this report. r.• 21 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, 1980. 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 is eligibility for another certificate." ACKNOWL EDEME NTS - 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. We would 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 - V Sidney C. Inman Richard D. Pribyl Director of Central Services Finance Officer -r 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, 1980 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. �cE OFF/e4 STA� P /. AND 113 "'� nt .4 CAVA ea T., SELL ti*men* Executive Director 23 Ims FINANCIAL SECTION 7— ACCOUNTANT'S OPINION G IVI I-I C o GEORGE M. HANSEN COMPANY, P.A. A Professional Corporation of Certified Public Accountants ACCOUNTANTS' OPINION NMI 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, 1981, 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, 1981, and the results of its operations and the changes in financial position of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with -� that of the preceding year. Our examination was made for the purpose of forming an opinion on the combined _ financial statements taken as a whole. The combining, individual fund, and account group financial statements and schedules lised 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 exam- ination of the combined financial statements and, in our opinion, is fairly stated in all material respects in relation to the combined financial state- - ments taken as a whole. Our examination did not include the statistical information listed in the table of contents . .7d.e. ,00r 7243.1'61eri c".7251", June 1, 1982 alMa _ 1 75 SOUTH PLAZA BUILDING WAYZATA BOULEVARD AT HIGHWAY 100 MINNEAPOLIS.MINNESOTA 55416 612/546-2566 25 COMBINED FINANCIAL STATEMENTS ..r 27 CITY OF FRIDLEY, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1981 Governmental Fund Types Special Debt Capital Special General Revenue Service Projects Assessment Assets '- Cash (deficit) $ 88,151 $ (218,668) $ 1,787 $ 180,974 $ (24,694) Investments, at cost 2,439,489 1,49 8,275 72,220 1,258,721 6,790,580 Receivables (Net of allowance for uncollectable) : Accounts 30,386 41,554 Taxes 17,532 257 296 Special assessments 5,756 4,675,018 Interest 358,034 Due from other governments 623,950 60,224 2,946 23,531 3,744 Due from other funds Inventories, at cost 17,352 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 $3,580,650 $1,381,385 $77,210 $1,463,522 $11,444,648 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 1981 1980 $ (60,861) $(137,000) $ 3,165 $ (167,146) $ (217,516) 3,078,336 648,572 31,804 15,817,997 13,546,631 317,161 118 389,219 373,412 18,085 25,346 4,680,774 3,952,401 358,034 463,424 297,452 1,011,847 143,923 14,845 14,845 28,588 195,840 213,192 203,209 70,279 70,279 64,049 383,235 383,235 398,054 (20,678) (20,678) (760) 226,113 226,113 210,400 11,854,884 $19,046,507 30,901,391 30,444,257 $ 76,953 76,953 69,480 2,329,119 2,329,119 200,459 $16,356,606 $ 511,690 $34,969 $19,046,507 $2,406,072 $56,303,259 $49,905,357 29 CITY OF FRIDLEY, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS (Continued) December 31, 1981 '- Governmental Fund Types Special Debt Capital Special General Revenue Service Projects Assessment Liabilities • Accounts payable $ 73,930 $ 4,331 Deposits payable 16,765 116,916 Contracts payable 5,019 Salaries payable 44,833 $ 23 88 Leave payable Deferred revenue 23,289 $ 257 $ 296 Due to other governments 14,830 Due to other funds Bonds payable 6,264,000 Total liabilities 173,647 23 257 296 6,390,354 Fund Equity T-. Contributed capital Investment in general fixed assets Retained earnings - Reserved - See note 10 Unreserved Fund balance: Reserved - See note 10 2,184,590 76,953 1,047,196 4,358,128 Unreserved 1,222,413 1,381,362 _ 416,030 696, 166 Total retained earnings/ -- fund balance 3,407,003 1,381,362 76,953 1,463,226 5,054,294 Total fund equity 3,407,003 1,381,362 76,953 1,463,226 5,054,294 Total liabilities and fund equity $3,580,650 $1, 381,385 $77,210 $1,463,522 $11,444,648 See Accompanying Notes to Financial Statement 30 EXHIBIT A-1 Cont. Fiduciary Proprietary Fund Types Fund Types Account Groups Totals Internal Trust and General General Long (Memorandum Only) Enterprise Service Agency Fixed Assets Term Debt 1981 1980 $ 103,428 $ 2 ,128 $ 183,817 $ 270,108 27,902 161,583 141,585 877 $ 21,227 27,123 65,344 5,299 50,243 33,330 $198,213 198,213 207,628 396,034 419,876 478,808 59,231 74,061 178 14,845 14,845 28,588 320,000 2,370,000 8,954,000 6,105,000 884,869 198,213 30,030 -0- 2,406,072 10,083,761 7,330,569 10,166,680 10,166,680 10,166,680 $19,046,507 19,046,507 18,540,964 313,477 313,477 -0- 5,305,057 5,305,057 4,948,813 7,666,867 7,290,462 4,939 3,720,910 1,627,869 5,305,057 313,477 4,939 17 ,006,311 13,867,144 15,471,737 313,477 4,939 19,046,507 -0- 46,219,498 42,574,788 $16,356,606 $511,690 $34,969 $19,046,507 $2,406,072 $56,303,259 $49,905,357 31 CITY OF FRIDLEY, MINNESCIA COMBINED STATEMENT OF REVENUES , EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS Year Ended December 31, 1981 Governmental Fund Types Special Debt General Revenue Service Revenues: Taxes and special assessments $2,085,759 $29,915 Licenses and permits 192,347 $ 41,554 Intergovernmental revenue 2,583,580 448,426 8,672 - Charges for current services 129,887 Fines and forfeitures 119,428 Interest on investments 311,544 174,198 5,401 Miscellaneous 74,223 Total revenues 5,496,768 664,178 43,988 Other financing sources: Transfers from other funds 460,000 Bond sales Total other financing sources 460,000 -0- -0- Total revenues and other financing sources 5,956,768 664,178 43,988 _, Expenditures: General government 725,095 Public safety 1,994,788 ►. Civic center 137,976 Public works 1,427,087 3,570 Parks and recreation 1,087,811 Capital projects Debt service 16,030 36,515 Other Total expenditures 5,388,787 3,570 36,515 Other financing uses: _, Transfers to other funds 117,655 435,365 Bonds issued Total other financing uses 117,655 435,365 -0- Total expenditures and other financing uses 5,506,442 438,935 36,515 Excess of revenues and other sources over expenditures and other uses 450,326 225,243 7,473 Fund balance January 1 as previously reported 2,956,677 1 , 603,939 69,480 Adjustment: See note 11 (447,820) Fund balance January 1 as restated 2,956,677 1,156,119 69,480 .. Fund balance December 31 S3,407,003 $1,381,362 $76,953 See Accompanying Notes to Financial Statements EXHIBIT A-2 - Fiduciary Fund Type Totals Capital Special Trust and (Memorandum Only) Projects Assessments Agency 1981 1980 $ 34,516 $1,353,321 $ 3,503,511 $ 3,041,713 233,901 229,148 ... 120,622 62,702 3,224,002 2,957,372 129,887 108,547 119,428 103,013 ... 148,837 740,269 2,445 1,382,694 955,209 318,488 346,138 738,849 386,263 622,463 2,502,430 2,445 9,332,272 7,781,265 183,020 643,020 1,282,580 2,100,139 .. -0- 183,020 -0- 643,020 3,3 82,719 622,463 2,685,450 2,445 9,975,292 11,163,984 725,095 618,215 1,994,788 1,737,883 137,976 128,795 1,430,657 1,111,066 ... 1,087,811 839,271 130,778 718,769 849,547 1,426,947 382,254 434,799 324,921 „r 83,998 83,998 42,560 130,778 1,185,021 -0- 6,744,671 6,229,658 8,360 561,380 1,209,469 2,120,000 8,360 -0- 561,380 3,329,469 130,778 1,193,381 -0- 7,306,051 9,559,127 491,685 1,492,069 2,445 2,669,241 1,604,857 971,541 3,562,225 2,494 9,166,356 7,426,802 (447,820) (313,123) 971,541 3,562,225 2,494 8,718,536 7,113,679 $1,463,226 $5,054,294 $4,939 $11,387,777 $ 8, 718,536 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, 1981 General Fund Variance- Favorable Budget Actual (Unfavorable) Revenues: Taxes and special assessments $2,317,846 $2,085,759 $(232,087) -. Licenses and permits 233,772 192,347 (41,425) Intergovernmental revenue 2,195,060 2,583,580 388,520 Charges for current services 116,364 129,887 13,523 Fines and forfeits 98,000 119,428 21,428 Interest on investments 170,000 311,544 141,544 Miscellaneous 63,700 74,223 10,523 Total revenues 5,194,742 5,496,768 _ 302,026 Other financing sources - transfers from other funds 460,000 460,000 -0- Total revenues and other financing sources 5,654,742 5,956,768 302,026 -. Expenditures: General government 772,357 725,095 47,262 Public safety 2,006,884 1,994, 788 12,096 Civic Center 145,311 137,976 7,335 Public works 1,562,451 1,427,087 135,364 Parks and recreation 1,231,078 1,087,811 143,267 Debt service 16,030 16,030 Reserve for contingency 249,400 249,400 Total expenditures 5,983,511 5,388,787 594,724 Other financing uses - transfers to other funds 117,655 117,655 -0- Total expenditures and other financing uses 6,101 ,166 5,506,442 594,724 Excess (deficiency) of revenues and other sources over expenditures and other uses (446,424) 450,326 896,750 Fund balance January 1, as previously reported 2,956,677 2,956,677 Adjustment: See Note 11 Fund balance January 1, as restated 2,956,677 2,956,677 ^„ Fund balance December 31 $2,510,253 $3,407,003 $ 896,750 See Accompanying Notes to Financial Statements ., 34 EXHIBIT A-3 a Total -. Special Revenue Fund Types (Memorandum Only) Variance- Variance- Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) - $2,317,846 $2,085,759 $ (232,087) $ 41,554 $ 41,554 233,772 233,901 129 $ 430,368 448,426 18,058 2,625,428 3,032,006 406,578 .. 116,364 129,887 13,523 98,000 119,428 21,428 76,000 174,198 98,198 246,000 485,742 239,742 63,700 74,223 10,523 ..` 506,368 664,178 157,810 5,701,110 6,160,946 459,836 20,000 -0- (20,000) 480,000 460,000 (20,000) 526,368 664,178 137,810 6,181,110 6,620,946 439,836 772,357 725,095 47,262 a 2,006,884 1,994,788 12,096 145,311 137,976 7,335 3,600 3,570 30 1,566,051 1,430,657 135,394 _ • 1,231,078 1,087,811 143,267 16,030 16,030 249,400 249,400 „r 3,600 3,570 30 5,987,111 5,392,357 594,754 616,000 435,365 180,635 733,655 553,020 180,635 619,600 438,935 180,665 6,720,766 5,945,377 775,389 .. .. (93,232) 225,243 318,475 (539,656) 675,569 1,215,225 1,603,939 1,603,939 4,560,616 4,560,616 (447,820) (447,820) (447,820) (447,820) 1,603,939 1,156,119 4,560,616 4,112,796 $1,510,707 $1,381,362 $(129,345) $4,020,960 $4,788,365 $ 767,405 -. 35 EXHIBIT A-4 CITY OF FRIDLEY, MINNESOTA -- COMBINED STATEMENT OF REVENUES , EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES Year Ended December 31, 1981 -. Proprietary Fund Types Totals Internal (Memorandum only) T Enterprise Service 1981 1980 Sales and cost of sales: Sales $1,743,846 $1,743,846 $1,661,818 Cost of sales 1,399,165 1,399,165 1,328,573 - Gross profit 344,681 -0- 344,681 333,245 Operating revenues: Water sales and sewer rents 1,494,168 1,494,168 1,404,119 Connection permits 1,704 1,704 2,079 Miscellaneous revenues 64,209 64,209 71,511 _ Rental income 17,731 17,731 36,990 Charges for services $790,849 790,849 199,795 Total operating revenue 1,577,812 790,849 2,368,661 1, 714,494 Operating expenses: Personal services 512,192 512,192 484,825 Supplies and other charges 1,320,610 738,698 2,059,308 1,030,486 - Depreciation 121,580 121,580 123,389 Total operating expenses 1,954,382 738,698 2,69 3,080 1,638,700 - Operating income (31,889) 52,151 20,262 409,039 Nonoperating revenues (expenses) : Intergovernmental revenue 302,009 302,009 7,227 Interest on investment 426,865 11,585 438,450 294,704 Tap fees 445 445 1,125 Debt service (14,681) (14,681) (19,508) Current value credit received 14,327 14,327 13,613 Miscellaneous revenue 15,803 49,946 65,749 16,905 Land acquisition (274,995) (274,995) Total non-operating revenues (expenses) 469,773 61,531 531,304 314,066 Income before operating transfers 437,884 113,682 551,566 723,105 Operating transfers from (to) (81,640) -0- (81,640) (73,111) Net income 356,244 113,682 469,926 649,994 Retained earnings January 1 4,948,813 199,795 5,14 8,608 4,498,614 Retained earnings December 31 $5,305,057 $313,477 $5,618,534 $5,148,608 See Accompanying Notes to Financial Statements .� 36 EXHIBIT A-5 CITY OF FRIDLEY, MINNESO'T'A COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION ALL PROPRIETARY FUND TYPES Year Ended December 31, 1981 Totals Internal (Memorandum Only) Enterprise Service 1981 1980 Sources of working capital: Operations: Net income for the year $ 356,244 $ 113,682 $ 469,926 $ 649,994 Items not requiring working capital-depreciation 121,580 121,580 123,389 Working capital provided by operations 477,824 113,682 591,506 773,383 Long term receivable 14,819 14,819 14,087 Net decrease in restricted assets 4,205 4,205 28,875 Total sources of working capital 496,848 113,682 610,530 816,345 Uses of working capital: Acqusition of fixed assets 73,171 73,171 22,964 Decrease in long term bonds payable 85,625 85,625 62,661 Decrease in deferred revenue 52,092 52,092 46,301 Total uses of working capital 210,888 -0- 210,888 131,926 Net increase in working capital $ 285,960 $ 113,682 $ 399,642 $ 684,419 Elements of net increase (decrease) in working capital: Cash $(321,919) $(547,531) $ (869,450) $ 725,687 Investments 371,336 648,572 1,019,908 238,226 Receivables 10,286 118 10,404 2,681 Inventory 7,683 7,683 22,899 Prepaid expenses 6,230 6,230 16,611 Due from other governments 244,539 244,539 (29,373) Due from other funds (13,743) (13,743) (12,725) Accounts payable 30,473 2,953 33,426 (112,286) Contracts payable (877) (877) Salaries payable (692) 155 (537) (4,762) Leave payable 9,415 9,415 (207,628) Due to other government units (59,231) (59,231) Bonds payable 11,875 11,875 45,089 Net increase in working capital $ 285,960 $ 113,682 $ 399,642 $ 684,419 a See Accompanying Notes to Financial Statements 37 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1981 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: 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 government and provides the following services: General Government , Public Safety, Public Works and Parks and Recreation services. 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 catagories as follows: .. GOVERNMENTAL FUNDS General Fund - The General Fund is the general 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. Capital Projects Funds - Capital Projects Funds are used to account for financial resources to be 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. 38 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1981 1. Summary of Significant Accounting Principles (Continued) A. Fund Accounting (Continued) PROPRIETARY FUNDS Enterprise Funds - Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City on a cost-reimbursement basis. FIDUCIARY FUNDS .o. 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. Fixed assets used in governmental fund type operations (general fixed assets) are recorded at historical cost 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. 39 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1981 1. Summary of Significant Accounting Principles (Continued) B. Measurement Focus (Continued) The two account groups are not "funds". They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets, in spite of their measurement focus. However, special reporting treatments are used to indicate in all governmental funds except Special Assessment 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. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long-Term Debt Account Group. Proprietary funds are accounted for on a. cost of services or "capital maintenance" measurement focus. This means that all assets, including fixed assets, and all liabilities, including long-term liabilities, associated with their activity are included on their balance sheets. Their reported fund equity is segregated into contributed capital and retained earnings components. Proprietary fund types operating statements present increases (revenues) and decreases (expenses) in net total assets. Depreciation of fixed assets used by 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 estmated useful lives are as follows: Land improvement 20 years Buildings 20 years Office equipment 5 - 10 years Machinery and equipment 5 - 10 years Other improvements 20 years 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. 40 P.M CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1981 1. Summary of Significant Accounting Principles (Continued) B. Measurement Focus (Continued) Capital leases are recorded as assets in either the proprietary funds or ..•■ in the general fixed assets account group, as appropriate. Donated fixed assets are valued at the fair market value as of the date received. C. Basis of Accounting Basis of accounting refers to when revenues and expenditures 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. 11` 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 of revenue 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. Unbilled utility service receivables are recorded at year end. 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 outside revenues. 41 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1981 1. Summary of Significant Accounting Principles (Continued) D. Budgets and Budgetary Accounting (Continued) 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 Assessments Funds is accomplished through the use of project controls. 8. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP) .. 9. Budgetary control is maintained at the expenditure catagory level within each activity. Budgetary control, by departments or divisions, and by catagory is required by the City Charter. E. 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. Cash and 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. Investments are stated at cost which approximates market. Investments, including 51,704,000 of temporary bonds issued by the City and held as investments by the Special Assessment Fund, are stated at cost and adjusted to market value only when a permanent decline in market has occured or when such investments will not be carried to maturity. G. Inventory F.I.F.O. based inventory is valued at the lower of cost or market based on physical counts in the General Fund and perpetual system in the Enterprise Funds. Inventory in the General Fund consists of expendable supplies held for consumption. 42 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) .� DECEMBER 31, 1981 1. Summary of Significant Accounting Principles (Continued) H. 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 $238,342 t.. 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 $313,477 Retained Earnings in the Employee Benefits Fund. I. 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 1980 amounts have been reclassified to conform to the 1981 presentation. ,.ft J. Total Columns on Combined Statements Total columns on the combined statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Interfund eliminations 1•■ have not been made in the aggregation of this data. 2. 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 collectable. Cities in Minnesota operate under a levy limitation law which generally permits a eight percent (8%) increase in taxes levied per capita each year and within taxing district. Levies for bonded indebtness are not limited by this law. 3. Due From Other Governments General Fund: 1. Fridley HRA $ 32,376 2. State of Minnesota, 1981 State Aid 591,574 $623 950 43 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1981 3. The From Other Governments (Continued) Special Revenue Funds: 1. State of Minnesota, Construction Money Expended in 1981. $ 8,083 2. Federal Government , Revenue Sharing 49,732 3. Housing and Urban Development 2,409 $66,224 Debt Service Fund: 1. Debt Service Fund, 1981 State Aid $ 2,946 Capital Projects Funds: 1. Capital Improvement Fund, 1981 State Aid $ 3,418 ..., 2. University Avenue Bikeway/Walkway, State Grant 20,113 $ 23,531 Special Assessment Funds: 1. Special Assessment Fund, 1981 State Aids $ 3,744 Enterprise Funds: 1. Public Utilities Fund, Metropolitan -� Waste Commission, current portion of deferred credit (explained below) . $ 12,799 2. Christenson Building Fund , Fridley Housing and Redevelopment Authority 284,653 $297,452 The deferred credit of the Public Utilities Enterprise Fund represents: 1. The City's share of equity in the City's sewer interceptors is $354,150 (the interceptors were acquired by the Metropolitan Waste Control Commission on 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 $41,884, which will be repaid with interest through 1988, is for advances made to the Commission during 1971 and 1972. 44 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1981 4. Changes in General Fixed Assets A summary of changes in general fixed assets are as follows: Balance Balance Jan 1, 1981 Additions Deletions Dec 31, 1981 Land $ 1,656,778 $ 1,656,778 Buildings and structures 1,200,801 $ 429,118 1,629,919 Improvements other than buildings 12,311,446 1,053,349 $14,518 13,350,277 Furniture, fixtures and office equipment 295,200 20,680 59,189 256,691 Machinery and equipment 1,320,247 160,768 102,832 1,378,183 Specialized equipment 86,867 11,500 3,913 94,454 Construction in progress 1,669,625 476,131 1,465,551 680,205 Total $18,540,964 $2,151,546 $1,646,003 $19,046,507 Construction in progress is composed of the following: Land $380,312 Improvements other than buildings 299,893 Total $680 205 A summary of proprietary fund type property, plant and equipment at December 31, 1981 follows: Enterprise Land $ 22 3,312 Buildings 894,936 Office furniture 77,503 Other improvements 10,290,589 Machinery and automotive equipment 2,012,028 Total 13,498,368 Less accumulated depreciation 1,643,484 Net $11,885,884 45 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1981 5. Changes in Long-Term Liability The following is a summary of bond transactions of the City of the year ended December 31, 1981 (in thousands of dollars) : General Special Long-Term Enterprise Assessment Debt Funds Funds Total Bonds payable at January 1, 1981 $ 200,000 $417,500 $5,487,500 $6,105,000 New bonds issued: General Obligation Tax Increment Redevelopment Bonds 2,200,000 2,200,000 Temporary Bonds of 1981 1,439,000 1,439,000 Bonds retired (30,000) ( 97,500) (662,500) (790,000) Bonds payable at December 31, 1981 $2,370,000 $320,000 $6,264,000 $8,954,000 Bonds payable at December 31, 1981 are comprised of the following individual issues (in thousands of dollars): General Long-Term 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% 170 $2,200,000 General Obligation Tax Increment Redevelopment Bonds of 1981 due in varing annual installments of $50,000 - $250,000 through February 1, 1999; interest at 7.10% - 2,200 9.00% 2,370 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, 320 February 1, 1988; interest at 3.20% - 3.50% Special Assessment Funds: $295,000 Improvement Bonds of 1962 due in annual .. installments of $5,000 through February 1, 1982 ; interest 5 at 3.10% - 3.80% 46 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1981 5. Changes in Long-Term Liability (Continued) Special Assessment Fund (continued) : $990,000 Improvement Bonds of 1963 due in annual installments of $35,000 through January 1, 1983; interest at 3.20% - 3.80% 35 $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% 120 $1,830,000 Improvement Bonds of 1967 due in varying annual installments of $20,000 - $40,000 through January 1, 1988; interest at 4.20% - 4.50% 170 $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% 750 $1,220,000 G. O. Refunding Bonds of 1975 due in varying annual installments of $10,000 - $95,000 through January 1, 1989; interest at 6.00% 285 $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% 675 $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% 765 $1,755,000 Special Assessment Bonds of 1980 in varying annual installments of $25,000 - $155,000 through February 1, 2001; interest at 7.25% - 8.50% 1,755 $265,000 Temporary Bonds of 1980 due August, 1983; interest at 8.00% 265 $940,000 Temporary Bonds of 1981 due April 15, 1984; interest at 8.00% 940 $499,000 Temporary Bonds of 1981 due December 15, 1984; interest at 8.00% 499 6,264 47 . CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) ., DECEMBER 31, 1981 5. Changes in Long-Term Liability (Continued) The annual requirements to amortize all debt outstanding as of December 31, 1981, including interest payments of $4,086,163, are as follows: Annual Requirements to Amortize Long-Term Debt December 31, 1981 General Long-Term Debt Tax Increment Special Year Ending Civic Center Redevelopment Enterprise Assessment December 31 Bonds Bonds Fund Fund Total ,, 1982 $ 35,425 $ 181,150 $109,045 $ 863,844 $ 1,189,464 1983 39,299 181,150 58,575 1,318,567 1,597,581 1984 38,062 229,375 56,825 2,229,971 2,554,233 1985 36,837 249,900 55,075 668,061 1,009,873 1986 35,613 244,463 53,325 591,153 924,554 1987 238,950 51,575 550,415 840,940 .-. 1988 257,425 20,350 451,425 729,200 1989 249,875 351,163 601,038 1990 266,231 274,450 540,681 1991 256,450 186,775 443,225 1992 - 1996 1,302,681 416,406 1,719,087 1997 - 2001 739,412 150,875 890,287 $185,226 S4,397,062 $404,770 $8,053,105 $13,040,163 $76,953 is available in the Debt Service Fund to service the General Obligation Civic Center Bonds. The General Obligation Tax Increment Financing Bonds of 1981 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 limitations and restrictions. 6. 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 rental 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 48 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1981 6. 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 throughout 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. In addition, the City has a lease-purchase agreement for the purchase of real estate located within Fridley, known as the Christenson property. The agreement expired July 31, 1979 but contained provisions for two one-year extensions. The City had the option of purchasing the property for $275,000 and did so during 1981. During that same year the City sold this property to the Fridley HRA for the City cost. 7. Interfund Receivables and Payables Interfund Interfund Fund or Account Group Receivables Receivables Enterprise - Public Utility Fund $14,845 "" General Long-Term Debt $14,845 $14,845 $14,845 •• The amounts shown here represent an interest bearing 3 year loan that the Enterprise Fund made for an addition on the City Garage. The repayment of the loan is provided for in the annual budget of the General Fund. 8. Pension Plans (All Funds) The City levies annually for pension contributions to the Fridley Police Relief Association. The Fridley Volunteer Firefighters Relief Association is totally funded and required no City levy. The Police and Firemen's associations have approximately 25 and 34 members respectively. The pension levies for the year ended December 31, 1981 for the Police Pension was $127,236. The pension levy meets the minimum requirements of the Police and Firemen's Relief Association Guidelines ._ Act , and includes the normal cost, interest at 5% on the unfunded liability, and an amount for the amoritzation of the 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 .. 30, 1980, the actuarial liability exceeded pension fund assets by approximately $1,100,587. The latest study for the Firemen's Relief Assocation as of May 18, 1981 stated that there was an excees of pension fund assets over accrued liabilities of $2,283. 49 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1981 8. Pension Plans (All Funds) Continued On December 15, 1975, the City Council adopted an ordinance which had the effect of placing all newly-hired police officers in the state-wide P.E.R.A. Police and Fire Plan. This action of the City Council had the effect of substantially reducing the City's liability for newly-hired officers as the statewide P.E.R.A. Police and Fire Plan has retirement benefits less liberal than those of the Fridley Police Pension Association. The above disclosures are not in accordance with Financial Accounting -� Standard Number 36. The required information is not available because the relief associations are not required to report under ERISA. All other City employees (with minor exceptions such as casual labor) must belong to the state-wide retirement plan administered by the Public Employees Retirement Association (PERA) . The City contribution to this plan of $433,599, based on statutory percentages determined by PERA for the year ended December 31, 1981, included an amount to retire prior years' unfunded liabilities with full funding required by the year 2010. PERA is a state-wide contributory retirement plan for which an individual City's portion of the unfunded liability is not available because no city is directly liable for any unfunded liability under Minnesota law. 50 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1981 9. Segment Information for Enterprise Funds The City maintains operating funds for Liquor, Public Utilities, and the Christenson Building. Segment information for the year ended December 31, 1981 are as follows: Total Public Christenson Enterprise Li uor Utilities Building Funds Sales (less cost of m. sales of $1,399,165) $ 344,681 $ 344,681 Operating revenues $ 1,560,081 $17,731 1,577,812 Operating expenses (237,471) (1,681,670) (35,241 ) (1,954,382) Operating income (loss) 107,210 (121,589) (17,510) (31,889) Nonoperating revenue 85,765 373,968 10,040 469,773 Net income 192,975 252,379 (7,470) 437,884 Transfers from (to) other funds (90,000) 8,360 -0- (81,640) Net change in retained earnings $ 102,975 $ 260,739 $(7,470) $ 356,244 Depreciation expense included in operating expenses 11,463 110,117 -0- 121,580 Property and equipment Additions 10,118 63,053 -0- 73,171 Deletions 869 869 Net working capital 753,541 2,940,676 -0- 3,694,217 Bonds and other long-term liabilities payable from operating revenues 320,000 320,000 Total assets 1,053,088 15,303,518 -0- 16,356,606 Total equity $ 963,609 $14,508,128 -0- $15,471,737 51 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1981 10. Reserved Fund Balances/Fund Equity The following reservations have been made of various fund balances/fund equity at December 31, 1981: General Fund Reserved for : Encumbrances $ 384,590 Fixed asset replacement 700,000 Working capital 1,100,000 2,184,590 Debt Service Fund Reserved for Debt Service 76,953 Capital Projects Fund Reserved for encumbrances 8,875 Reserved for Fixed Asset Replacement 1,038,321 1,047,196 Special Assessment Fund Reserved for : Encumbrances 629,422 Debt Service 3,728,706 4,358,128 Internal Service Fund Reserved for employee benefits 313,477 Total reservations S7,980,344 11. Prior Period Adjustments The Municipal State Aid Fund within the Special Revenue Funds has been restated to remove the January 1, 1981 and 1980 receivables from the State of Minnesota in the amounts of $447,820 and $313,123 respectively. These receivables, which were reserved in the financial statements, are available to the City only upon meeting certain criteria established by the State. The related revenue is recognized when the conditions set forth by the State are met. 52 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1981 12. 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 or including the year ended December 31, 1981 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. 13. Litigation The City had the usual and customary types 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. 53 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, 1981 and 1980 1981 1980 Assets Cash (deficit) $ 88,151 $ (880,313) Investment, at cost 2,439,489 3,451,4 31 Receivables: -' Accounts 30,386 65,937 Taxes Unremitted 17,532 24,938 Delinquent 274,678 51,803 Less: estimated uncollectable (274,678) (51,803) Special assessments Deferred principal 5,756 5,336 Delinquent 9,332 9,483 Less: estimated uncollectable (9,332) (9,483) Interest 358,034 463,424 Due from other governments 623,950 Inventories at cost 17,352 15,052 Total assets $3,580,650 $3,145,805 Liabilities and Fund Balance Liabilities: Accounts payable $ 73,930 $ 122,199 Deposits payable 16,765 7,909 Salaries payable 44,833 28,568 Deferred revenue 23,289 30,274 Due to other governments 14,830 178 Total liabilities 173,647 189,128 Fund balance: Reserve for encumbrances 384,590 522,950 Reserve for replacement of fixed assets 700,000 700,000 Reserve for working capital 1,100,000 1, 100,000 Unreserved - Designated for subsequent years expenditure 228,000 255,000 .. Undesignated 994,413 378,727 Total fund balance 3,407,003 2,956,677 �- Total liabilities and fund balance $3,580,650 $3,145,805 55 FYHILI'7 F-2 CITY OF FRIDLEY, MINNESOTA - GENERAL FUND STATEMENT OF REVENUES , EXPENDITURES , AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1981 With Comparative Actual Amounts For Year Ended December 31, 1980 1981 Variance- Favorable 1980 Budget Actual (Unfavorable) Actual Revenues: Taxes $2,317,846 $2,085,759 $(232,087) $1,943,922 Licenses and permits 233,772 192,347 (41,425) 229,148 Intergovernmental revenue 2,195,060 2,5 83,580 388,520 2,054,907 -, Charges for current services 116,364 129,887 13,523 108,547 Fines and forfeits 98,000 119,428 21,428 103,013 Interest on investments 170,000 311,544 141,544 291,574 Miscellaneous 63,700 74,223 10,523 58,989 '- Total revenues 5,194,742 5,496,768 302,026 4,790,100 Other financing sources: Transfers from other funds 460,000 460,000 -0- 426,583 Total revenues and other financing sources 5,654,742 5,956,768 302,026 5,216,683 Expenditures: General government 772,357 725,095 47,262 618,215 Public safety 2,006,884 1,994,788 12,096 1,656,506 Civic center 145,311 137,976 7,335 128,795 - Public works 1,562,451 1,427,087 135,364 1,004,022 Parks and recreation 1,231,078 1,087,811 143,267 839,271 Debt service 16,030 16,030 16,030 Reserve for contingencies 249,400 249,400 Total expenditures 5,983,511 5,388,787 594,724 4,262,839 Other financing uses: Transfers to other funds 117,655 117 ,655 -0- 664,064 Total expenditures and -- other financing uses 6,101,166 5,506,442 594,724 4,926,903 Excess (deficiency) of revenues and other sources over expenditures and other uses (446,424) 450,326 896,750 289,780 Fund balance January 1 2,956,677 2,956,677 2,666,897 Fund balance December 31 $2,510,253 $3,407,003 $ 896,750 $2,956,677 _, 56 EXHIBIT B-3 CITY OF FRIDI,EY, MINNESOTA GENERAL FUND STATEMENT OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL - Year Ended December 31, 1981 With Comparative Actual Totals for Year Ended December 31, 1980 1981 Variance Favorable 1980 Budget Actual (Unfavorable) Actual Taxes: Current ad valorem taxes $2,264,846 $2,028,517 $(236,329) $1,888,000 Delinquent ad valorem taxes 31,000 40,791 9,791 37,844 Penalties and interest 3,500 6,156 2,656 5,903 .. Forfeited sale-taxes 10,000 6,990 (3,010) 7,084 Special assessments 8,500 3,305 (5,195) 5,091 Total taxes 2,317,846 2,085,759 (232,087) 1,94 3,922 Licenses and permits: Licenses - Contractor 16,868 10,657 (6,211) 13,760 - Business 108,832 89,449 (19,383) 118,114 All other 3,250 5,474 2,224 3,280 Permits 104,822 86,767 (18,055) 93,994 -. Total licenses and permits 233,772 192,347 (41,425) 229,148 Intergovernmental revenue: Civil defense 12,000 6,488 (5,512) 6,792 - Other federal grants 289,600 327,103 37,503 41,187 State maintenance aid 26,500 27,794 1,294 26,490 Attached machinery aid 16,700 19,694 2,994 17,018 -• Homestead credit 335,000 603,677 268,677 491,184 Local government aid 1,303,860 1,406,047 102,187 1,303,860 Other state grants 14,400 24,865 10,465 4,182 Shade tree disease control 32,000 (32,000) 25,178 Police and fire pension 120,000 123,905 3,905 123,370 Local grants 45,000 44,007 (993) 15,646 Total intergovernmental revenue 2,195,060 2,583,580 388,520 2,054,907 Charges for services: General government 12,420 11,510 (910) 11,682 - Public safety 21,730 18,925 (2,805) 17,718 Conservation of health 17,380 15,159 (2,221) 13,084 Recreation 64,834 84,293 19,459 66,063 Total charges for current services 116,364 129,887 13,523 108,547 - Fines and forfeitures 98,000 119,428 21,428 103,013 (Continued) 57 xl1IBI7 B-3 'ont. CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL -- Year Ended December 31, 1981 With Comparative Actual Totals for Year Ended December 31, 1980 1981 Variance- Favorable 1980 Budget Actual (Unfavorable) Actual Interest on investments $ 170,000 $ 311,544 $141,544 $ 291,574 Miscellaneous revenue: Rent income 16,500 8,555 (7,945) 16,471 Sale of property 22,200 42,339 20,139 7,340 Donations 15,000 9,051 (5,949) 26,200 Miscellaneous refunds 10,000 14,278 4,278 8,978 Total miscellaneous revenue 63,700 74,223 10,523 58,989 -, Total revenue 5,194,742 5,496,768 302,026 4,790,100 Other financing sources: Transfers from - State Aid Fund 125,000 125,000 111,000 Revenue Sharing Fund 245,000 245,000 230,000 Liquor Fund 90,000 90,000 85,000 Teen Center Fund 583 Total other financing sources 460,000 460,000 -0- 426,583 Total revenues and other financing sources $5,654,742 $5,956,768 $302,026 $5,216,683 .... 58 EXHIBIT B-4 .., CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL Year Ended December 31, 1981 -- With Comparative Actual Amounts for Year Ended December 31, 1980 - 1981 Variance- Favorable 1980 -- Budget Actual (Unfavorable) Actual General government: _ Mayor and council - Personal services $ 60,924 $ 49,930 $ 10,994 $ 43,917 Supplies and other charges 24,700 22,561 2,139 18,171 85,624 72,491 13,133 62,088 Planning commission - Personal services 26,394 24,802 1,592 17,763 - Supplies and other charges 8,815 5,470 3,345 4,963 35,209 30,272 4,937 22,726 Other commissions - ." Personal services 7,944 9,458 (1,514) 10,971 Supplies and other charges 35,285 39,190 (3,905) 27,617 Capital outlay 5,000 5,000 -• 48,229 48,648 (419) 38,588 City manager - .. Personal services 120,980 119,470 1,510 95,258 Supplies and other charges 45,691 43,098 2,593 20,952 Capital outlay 1,460 3,645 (2,185) 12,551 168,131 166,213 1,918 128,761 Personnel Personal services 25,320 27,224 (1,904) 13,112 - Supplies and other charges 6,350 4,150 2,200 3,368 Capital outlay 31,670 31,374 296 16,480 Legal - Personal services 2,600 2,600 Supplies and other charges 58,100 60,088 (1,988) 50,873 " 60,700 60,088 612 50,873 Elections - .. Personal services 10,355 7,254 3,101 22,179 Supplies and other charges 3,310 1,613 1,697 1,704 Capital outlay 712 (712) 13,665 9,579 4,086 23,883 Accounting - Personal services 116,509 116,991 (482) 97,748 - Supplies and other charges 67,451 60,454 6,997 46,955 Capital outlay 1,475 913 562 3,796 185,435 178,358 7,077 148,499 (Continued) 59 EXR1:B11 B-4 Cont. CITY OF FRIDLEY, MINNESOT A GENERAL FUND STATEMENT OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL '- Year Ended December 31, 1981 With Comparative Actual Amounts for Year Ended December 31, 1980 1981 Variance- -, Favorable 1980 Budget Actual (Unfavorable) Actual General government: (continued) Assessing - Personal services $ 128,339 $ 118,442 $ 9,897 $ 116,009 Supplies and other charges 14,155 9,200 4,955 10,308 -, Capital outlay 1, 200 430 770 143,694 128,072 15,622 126, 317 Total general government 772,357 725,095 47,262 618,215 Public safety: --Police - Personal services 1, 237,301 1,188,421 48,880 1,071,529 Supplies and other charges 221,274 210,877 10,397 149,371 Capital outlay 81, 275 76,133 5,142 53,598 - 1,539,850 1,475,431 64,419 1,274,498 Fire - -, Personal services 305,067 313,916 (8,849) 305,563 Supplies and other charges 88,490 117,126 (28,636) 44,441 Capital outlay 20,700 48,579 (27,879) 13,624 414,257 479,621 (65,364) 363,628 -- Civil defense - Personal services 43,452 36,379 7,073 16,706 Supplies and other charges 9,325 3,357 5,968 1,674 52,777 39,736 13,041 18,380 Total public safety 2,006,884 1,994,788 12,096 1,656,5 06 Civic center : Personal services 56,806 60,134 (3 ,328) 56,188 -- Supplies and other charges 80,655 62 ,275 18,380 69,698 Capital outlay 7,850 15,567 (7,717) 2,909 145, 311 137,976 7,335 128,795 Public works: Code enforcement - Personal services 161,541 153,225 8,316 121,226 Supplies and other charges 36,650 23,170 13,480 27,433 -. Capital outlay 150 150 198,341 176,395 21,946 148,659 Planning - Personal services 79,266 90,314 (11,048) 72,303 Supplies and other charges 327,600 316,236 11,364 19, 518 Capital outlay 500 712 (212) 625 407,366 407,262 104 92,446 (Continued) .. 60 "' EXHIBIT B-4 Cont . - CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL - Year Ended December 31, 1981 With Comparative Actual Amounts for Year Ended December 31, 1980 1981 Variance- Favorable 1980 - Budget Actual (Unfavorable) Actual Public works: (continued) - Engineering - Personal services $ 82,630 $ 66,375 $ 16,255 $ 62,963 Supplies and other charges 29,925 34,370 (4,445) 23,794 Capital outlay 525 254 271 1, 209 113,080 100,999 12,081 87,966 Public works - - Personal services 328,995 313,532 15,463 276,525 Supplies and other charges 390,131 411,567 (21,436) 339,708 Capital outlay 124,538 17,332 107,206 58,718 843,664 742,431 101,233 674,951 - Total public works 1,562,451 1,427,087 135,364 1,004,022 Parks and recreation: Naturalist - Personal services 55,857 55,587 270 50,576 .... Supplies and other charges 29,140 27,644 1,496 18,074 Capital outlay 2,030 1,316 714 404 87,027 84,547 2,480 69,054 Parks - Personal services 261,539 251,777 9,762 251,300 Supplies and other charges 360,706 294,254 66,452 165,086 Capital outlay 145,899 91,160 54,739 83,823 768,144 637,191 130,953 500,209 Recreation - Personal services 259,697 241,665 18,032 184,165 Supplies and other charges 116,210 124,408 (8,198) 85,843 375,907 366,073 9,834 270,008 - Total parks and recreation 1,231,078 1,087,811 143,267 839,271 - Debt service: Principal 13,743 13,743 12,725 Interest 2,287 2,287 3,305 -. Total debt service 16,030 16,030 -0- 16,030 Reserve for contingencies 249,400 -0- 249,400 -0- Total expenditures 5,983,511 5,388,787 594,724 4,262,839 (Continued) 61 EXHIBIT B-4 Cont . CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL Year Ended December 31, 1981 With Comparative Actual Amounts for Year Ended December 31 , 1980 1981 Variance- ,.., Favorable 1980 Budget Actual (Unfavorable) Actual Other financing uses: Transfers to - Special Assessment Fund $ 117,655 $ 117,655 $ 92,132 STEP Fund 66,932 Capital Improvement Fund 500,000 Sears Fund 5,000 Garage Fund -- Total other financing uses 117,655 117,655 -0- 664,064 Total expenditures and other financing uses $6,101,166 $5,506,442 $594,724 $4,926,903 62 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, 1981 -- With Comparative Totals For Year Ended December 31, 1980 ., Municipal State Revenue Cable Aid Sharing TV Assets Cash (deficit) $ 89,776 $(279,220) $(26,838) Investments, at cost 1,094,070 374,274 29,931 Accounts receivable 41,554 Due from other governments 8,083 49,732 Total assets $1,191,929 $ 144,786 $ 44,647 Liabilities and Fund Balance Liabilities: - Salaries payable -0- -0- -0- Fund balances: Unreserved - undesignated $1,191 ,929 $ 144,786 $ 44,647 Total liabilities and fund balances $1,191,929 $ 144,786 $ 44,647 ^- 64 EXHIBIT C-1 Home Totals Ownership 1981 1980 (2,386) $ (218,668) $ 20,109 1,498,275 1,070,000 41,554 2,409 60,224 66,010 — $ 23 $1,381,385 $1,156,119 $ 23 $ 23 -0- -0- 1,381,362 $1,156,119 $ 23 $1,381,385 $1,156,119 65 CITY OF FRIDLEY, MNNESOTA ., SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES , EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 1981 With Comparative Totals For Year Ended December 31, 1980 Municipal State Revenue Cable Aid Sharing TV Revenues: Licenses and permits $ -0- $ -0- $41,554 Intergovernmental revenue - Minnesota state aid 232,782 Revenue sharing 212,074 Selective Traffic Enforcement Program Housing redevelopment Housing and Urban Development Total intergovernmental revenue 232,782 212,074 -0- Interest on investments 138,082 33,023 3,093 Total revenues 370,864 245,097 44,647 — Other f inanc ing sources: Transfers from - — Gener a l Fund Community Development Fund Total other financing sources -0- -0- -0- Total revenues and other financing sources 370,864 245,097 44,647 Expenditures: Public safety Public works Total expenditures -0- -0-- -0- — Other financing uses: Transfers to - General Fund 125,000 245,000 Special Assessment Fund 65,365 — Home Ownership Fund _ _ Total other financing uses 190,365 245,000 -0- Total expenditures and other — financing uses 190,365 245,000 -0- Excess (deficiency) of revenues and other financing sources — over expenditures and other financing uses 180,499 97 44,647 Fund balance January 1 as previously reported 1,459,250 144,689 -0- Adjustment: See note 11 (447,820) Fund balance January 1 as restated 1,011,430 144,689 -0- Fund balance December 31 $1,191,929 $144,786 $44,647 66 EXHIBIT C-2 Home Totals Ownership 1981 1980 $ -0- $ 41,554 $ -0- ... 232,782 121,792 212,074 220,854 14,445 8,396 3,570 3,570 96,691 3,570 448,426 462,178 174,198 100,572 3,570 664,178 562,750 66,932 1,834 -0- -0- 68,766 3,570 664,178 631,516 81,377 3,570 3,570 107,044 3,570 3,570 188,421 370,000 341,583 65,365 178,255 1,834 -0- 435,365 521,672 3,570 438,935 710,093 -0- 225,243 (78,577) -0- 1,6 03,939 1,547,819 ._ (447,820) (313,123) -0- 1,156,119 1,234,696 $ -0- $1,381,362 $1,156,119 67 EXHIBIT C-3 CITY OF FRIDLEY, MINNESOTA MUNICIPAL STATE AID SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1981 and 1980 1981 1980 Assets Cash $ 89,776 $ 26,808 Investments, at cost 1,094,070 982,000 Due from other governments 8,083 2,622 -� Total assets $1,191,929 $1,011,430 Fund Balance Fund balance: Unreserved - undesignated $1,191,929 $1,011,430 68 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, 1981 With Comparative Actual Amounts for Year Ended December 31, 1980 1981 Variance- Favorable 1980 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental - Minnesota state aid $ 200,000 $ 232,782 $ 32,782 $ 121,792 Interest on investments 70,000 138,082 68,082 96,312 Total revenues 270,000 370,864 100,864 218,104 Other financing sources: Transfers from other funds 20,000 -0- (20,000) -0- "" Total revenues and other financing sources 290,000 370,864 80,864 218,104 Other financing uses: Transfers to - General Fund 125,000 125,000 111,000 Special Assessment Fund 246,000 65,365 180,635 178,255 Total other financing uses 371,000 190,365 180,635 289,255 Excess (deficiency) of revenues and other financing sources over expenditures and other -• financing uses (81,000) 180,499 261,499 (71,151) Fund balance January 1 as previously reported 1,459,250 1,459,250 1,395,704 Adjustment: See note 11 (447,820) (447,820) (313,123) "' Fund balance January 1 as restated 1,459,250 1,011,430 1,082,581 Fund balance December 31 $1,378,250 $1,191,929 $(186,321) $1,011,430 69 EXHIBIT C-5 CITY OF FRIDLEY, MINNESOTA REVENUE SHARING SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1981 and 1980 1981 1980 -, Assets Cash $(279,220) $ 2,575 Investments, at cost 374,274 88,000 Due from other governments 49,732 54,114 Total assets $ 144,786 $144,689 Fund Balance Fund balance: Unreserved - undesignated $ 144,786 $144,689 70 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, 1981 With Comparative Actual Amounts For Year Ended December 31, 1980 1981 Variance- Favorable 1980 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental - Revenue sharing $226,768 $212,074 $(14,694) $220,854 Interest on investments 6,000 33,023 27,023 4,260 Total revenues 232,768 245,097 12,329 225,114 Other financing uses: Transfer to General Fund 245,000 245,000 -0- 230,000 Total expenditures and other financing uses 245,000 245,000 -0- 230,000 Excess (deficiency) of revenues over expenditures and other financing uses (12,232) 97 12,329 (4,886) Fund balance January 1 144,689 144,689 149,575 Fund balance December 31 $132,457 $144,786 $ 12,329 $144,689 71 EXHIBIT C-7 CITY OF FRIDLEY, MINNESOTA CABLE TV SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1981 and 1980 1981 1980 Assets Cash (deficit) $(26,838) Investments, at cost 29,931 Accounts receivable $ 41,554 Total assets $ 44,647 $ -0- Find Balance Fund balance: Unreserved - undesignated $ 44,647 $ -0- 72 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, 1981 With Comparative Actual Amounts for Year Ended December 31, 1980 1981 Variance- Favorable 1980 -- Budget Actual (Unfavorable) Actual Revenues: Licenses - Cable TV $ 41,554 $ 41,554 Interest on investments 3,093 3,093 Total revenue s -0- 44,647 44,647 -0- . Fund balance January 1 -0- -0- -0- Fund balance December 31 $ -0- $ 44,647 $ 44,647 $ -0- • 73 EXHIBIT C-9 — CITY OF FRIDLEY, MINNESOTA HOME OWNERSHIP SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1981 and 1980 -- 1981 1980 Assets Cash (deficit) $(2,386) $(9,274) — Due from other governments 2,409 9,274 Total assets $ 23 $ -0- Liabilities and Fund Balance ., Liabilities: Salaries payable $ 23 -0- Fund balance: ""' Unreserved - undesignated -0- -0- Total liabilities and fund balance $ 23 $ -0- 74 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, 1981 With Comparative Actual Amounts for Year Ended December 31, 1980 1981 .• Variance- Favorable 1980 Budget Actual (Unfavorable) Actual Revenue s: Intergovernmental - Housing and Urban Development $71,491 Housing Redevelopment Authority $ 3,600 $ 3,570 $ (30) 25,200 Total revenues 3,600 3,570 (30) 96,691 — Other financing sources: Transfer from Community Development Fund -0- -0- -0- 1,834 Total revenues and other financing sources 3,600 3,570 (30) 98,525 Expenditures: Public works - Personal services 3,250 3,230 20 5,348 Supplies and other charges 350 340 10 1,575 Capital outlay 86,492 Total expenditures 3,600 3,570 30 93 i___415 Excess (deficiency) of revenues and other financing sources over expenditures -0- -0- -0- 5,110 Fund balance January 1 -0- -0- (5,110) Fund balance December 31 $ -0- $ -0- $ -0- $ -0- .. 75 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 FRIDLEY, MINNESOTA DEBT SERVICE FUND COMPARATIVE BALANCE SHEET December 31, 1981 and 1980 1981 1980 Assets Cash $1,787 $11,280 Investments, at cost 72,220 58,200 Taxes receivable: Unremitted 257 408 Delinquent 4,360 1,205 Less: Estimated uncollectable (4,360) (1,205) Due from other governments 2,946 Total assests $77,210 $69,888 Liabilities and Fund Balance �. Liabilities: Deferred revenue $ 257 $ 408 Fund balance: Reserved for debt service 76,953 69,480 Total liabilities and fund balance $77,210 $69,888 77 EXHIBIT D-2 CITY OF FRIDLEY, MINNESOTA DEBT SERVICE FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Years Ended December 31, 1981 and 1980 -1981 1980 -, Revenues: Taxes $29,915 $30,952 Intergovernmental - Homestead credit 8,672 7,826 Interest on investments 5,401 3,858 Total revenues 43,988 42,636 Expenditures: Debt service - ... Principal retirement 30,000 30,000 Interest and fiscal charges 6,515 7,539 Total expenditures 36,515 37,539 Excess of revenues over expenditures 7,473 5,097 Fund balance January 1 69,480 64,383 Fund balance December 31 $76,953 $69,480 78 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, 1981 With Comparative Totals For December 31, 1980 Islands North Capital of North Park Improvement Peace Park Visitation Assets Cash (deficit) $ 30,636 $244 $ 2,996 " Investments, at cost 1,004,267 94,191 Taxes receivables Unremitted 296 Delinquent 4,562 Less: Estimated uncollectable taxes (4,562) Due from other governments 3,418 Total assets $1,038,617 $ -0- $244 $97,187 Liabilities and Fund Balance Liabilities: -- Accounts payable Contracts payable Deferred revenue $ 296 Total liabilities 296 -0- -0- -0- Fund balances: Reserved for encumbrances Reserved for fixed asset replacement 1,038,321 Unreserved - undesignated 244 97,187 -� Total fund balances 1,038,321 -0- 244 97,187 Total liabilities and fund balances $1,038,617 $ -0- $244 $97,187 80 EXHIBIT E-1 University Avenue Totals Sears Bike/Walk 1981 1980 $167,046 $(19,948) $180,974 $52,082 160,263 1,258,721 954,400 _ 296 4,562 1,246 (4,562) (1,246) 20,113 23,531 $327,309 $ 165 $1,463,522 $1,006,482 $ 10,948 $ 296 23,993 -0- -0- 296 34,941 8,875 8,875 55,607 1,038,321 875,882 318,434 165 416,030 40,052 327,309 165 1,463,226 971 ,541 $327,309 $ 165 $1,463,522 $1,006,482 81 CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES , EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended December 31, 1981 With Comparative Totals For Year Ended December 31, 1980 North Park — Capital Islands North Visitation Improvement of Peace Park Center — Revenues: Taxes - Current ad valorem taxes $ 33,788 Delinquent ad valorem taxes 728 — Total taxes 34,516 -0- -0- -0- Intergovernmental - Homestead credit 10,065 State grant Me tro counc it — Islands of peace foundation Total intergovernmental 10,065 -0- -0- -0- Interest on investments 117,858 -0- $244 $ 12,629 — Miscellaneous revenue - Sale of property 121,750 — Donatio ns $ 1,000 19,000 Other 1, 738 Total miscellaneous -0- 2,738 -0- 140,750 Total revenues 162,439 2,738 244 153,379 Other financing sources: Transfers from - Gener a l Fund North Park Fund — Total other financing sources -0- -0- -0- -0- Total revenues and other financing sources 162,439 2,738 244 153,379 82 EXHIBIT E-2 University Avenue Totals Sears Bike/Walk 1981 1980 $ 33,788 $ 34,987 728 723 -0- -0- 34,516 35,710 10,065 9,147 $ 75,591 $34,966 110,557 55,783 341,231 1,300 75,591 34,966 120,622 407,461 18,106 -0- 148,837 36,532 121,750 175,000 195,000 14,700 1,738 11,980 175,000 -0- 318,488 26,680 268,697 34,966 622,463 506,383 505,000 2,703 -0- -0- -0- 507,703 268,697 34,966 622,463 1,014,086 83 CITY OF FRIDLEY, MI NNES OT A CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES EXPENDITURES, AND CHANGES IN FUND BALANCES (Continued) Year Ended December 31, 1981 With Comparative Totals For Year Ended December 31, 1980 North Park Capital Islands North Visitation Improvement of Peace Park Center Expenditures: Capital projects - — Construction contracts $ 69,605 Engineering and other $ 4,297 6,254 Interest expense Total expenditures -0- 4,297 -0- 75,859 Other financing uses: Transfers to North Park Fund -0- -0- -0- -0- Total expenditures and other financing uses -0- 4,297 -0- 75,859 -- Excess (deficiency) of revenue and other financing sources over expenditures and other financing uses $ 162,439 (1,559) $244 77,520 Fund balance January 1 875,882 1,559 -0- 19,667 Fund balance December 31 $1,038,321 $ -0- $244 $ 97,187 84 EXHIBIT E-2 Cont. University Avenue Totals Sears Bike/Walk 1981 1980 $27,218 $ 96,823 $ 369,583 $ 17,614 4,562 32,727 29,453 1,228 1,228 1,676 17,614 33,008 130,778 400, 712 -0- -0- -0- 2,703 17,614 33,008 130,778 403,415 251,083 1,958 491,685 610,671 i 76,226 (1,793) 971,541 360,870 $327,309 $ 165 $1,463,226 $ 971,541 a 85 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, 1981 With Comparative Totals For December 31, 1980 Special Totals Assessment Revolving 1981 1980 Assets Cash (deficit) $ (40,818) $ 16,124 $ (24,694) $ (92,338) Investments, at cost 6,264,511 526,069 6,790,580 5,294,100 ▪ Receivables: Accounts 600 Special assessments Deferred 4,257,993 69,049 4,327,042 3,543,053 Delinquent 342,185 5,791 347,976 404,012 Due from other governments 3,744 3,744 25,000 — Total assets $10,827,615 $617,033 $11,444,648 $9,174,427 — Liabilities and Fund Balance Liabilities: -. Accounts payable $ 4,331 $ 4,331 $ 107 Deposits payable $116,916 116,916 124,595 Contracts payable 5,019 5,019 Salaries payable 88 88 " Bonds payable 6,264,000 6,264,000 5,487,500 Total liabilities 6,273,438 116,916 6,390,354 5,612,202 Fund balances: Reserved for encumbrances 629,422 629,422 123,108 Reserved for debt service 3,728,706 3,728,706 3,643,640 Unreserved - undesignated 196,049 500,117 696,166 (204,523) Total fund balance 4,554,177 500,117 5,054,294 3,562,225 Total liabilities and fund balances $10,827,615 $617,033 $11,444,648 $9,174,427 i /fl 87 EXHIBIT F-2 ., CITY OF FRIDLEY, MINNESOTA SPECIAL ASSESSMENT FUNDS -, COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended December 31, 1981 With Comparative Totals For Year Ended December 31, 1980 ,^ Special Totals Assessments Revolving 1981 1980 Revenues: Special assessments $1,344,961 $ 8,360 $1,353,321 $1,031,129 Intergovernmental - local 62,702 62,702 25,000 Interest on investments 676,481 63,788 740,269 521,190 Interest and penalties on assessments 324,932 7,114 332,046 256,531 Interest on assessments 4,465 119 4,584 20,020 Miscellaneous 9,508 9,508 24,043 Total revenues 2,423,049 79,381 2,502,430 1,877,913 Other financing sources: Transfers from - General Fund 117,655 117,655 92,132 State Aid Fund 65,365 65,365 178,255 Public Utility Fund 9,141 Bond Sales 2 ,100,139 Total other financing sources 183,020 -0- 183,020 2,379,667 Total revenues and other financing sources 2,606,069 79,381 2,685,450 4,257,580 Expenditures: Capital projects 702,769 16,000 718,769 1,026,235 Debt service - interest and fiscal charges 382,254 382,254 271,352 Interest 83,998 83,998 25,805 Other 16,755 Total expenditures 1,169,021 16,000 1,185,021 1,340,147 -" Other financing uses: Transfers to - Public Utility Fund 8,360 8,360 21,030 Bonds issued 2,120,000 Total other financing uses -0- 8,360 8,360 2,141,030 ,_ Total expenditures and other financing uses 1,169,021 24,360 1,193,381 3,481,177 Excess (deficiency) of revenues and other financing sources over expenditures and .. other financing uses 1,437,048 55,021 1,492,069 776,403 Fund balance January 1 3,117,129 445,096 3,562,225 2,785,822 Fund balance December 31 $4,554,177 $500,117 $5,054,294 $3,562,225 88 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 FRIDLEY, MINNESOTA ENTERPRISE FUNDS - COMBINING BALANCE SHEET EXHIBIT G-1 .-. December 31, 1981 With Comparative Totals For December 31, 1980 Public Christenson Totals Liquor Utilities Building 1981 1980 Assets Current assets: Cash (deficit) $ 113,964 $ 110,136 $(284,961) $ (60,861) $ 261,058 ... Investments, at cost 540,048 2,538,288 3,078,336 2,707,000 Accounts receivable 54 316,799 308 317,161 306,875 Due from other governments 12,799 284,653 297,452 52,913 Due from other funds 14,845 14,845 28,588 " Inventories, at cost 188,954 6,886 195,840 188,157 Prepaid expenses 70,279 70,279 64,049 Total current assets 843,020 3,070,032 -0- 3,913,052 3,608,640 Long term receivable-Metropolitan Waste Control Commission -0- 383,235 -0- 383,235 398,054 ▪ Restricted assets (for debt service) : Cash (deficit) (20,678) (20,678) (760) Investments, at cost -0- 226,113 -0- 226,113 210,400 .. Total restricted assets -0- 205,435 -0- 205,435 209,640 Property and equipment, at cost: Property and equipment 302,724 13,195,644 13,498,368 13,426,066 ▪ Less: Accumulated depreciation (92,656) (1,550,828) -0- (1,643,484) (1,522,773) Net property and equipment 210,068 11,644,816 -0- 11,854,884 11,903,293 Total assets $1,053,088 $15,303,518 $ -0- $16,356,606 $16,119,627 Liabilities And Fund Equity Current liabilities: Accounts payable $ 76,541 $ 26,887 $ 103,428 $ 133,901 Contracts payable 877 877 Salaries payable 1,692 3,607 5,299 4,607 Due to other governments 11,246 47,985 59,231 Bonds payable 50,000 50,000 61,875 Total current liabilities 89,479 129,356 $ -0- 218,835 200,383 Long term liabilities: Bonds payable (net of current portion) 270,000 270,000 355,625 Deferred revenue 396,034 396,034 448,126 Total long term liabilities -0- 666,034 -0- 666,034 803,751 Total liabilities 89,479 795,390 -0- 884,869 1,004,134 Fund equity: Contibuted capital 10,166,680 10,166,680 10,166,680 Retained earnings - unreserved 963,609 4,341,448 -0- 5,305,057 4,948,813 Total fund equity 963,609 14,508,128 -0- 15,471,737 15,115,493 Total liabilities and fund equity $1,053,088 $15,303,518 $ -0- $16,356,606 $16,119,627 89 EXHIBIT G-2 CITY OF FRIDLEY, MINNESOTA ENTERPRISE FUNDS ... COMBINING STATEMENT OF REVENUES , EXPENSES AND CHANGES IN RETAINED EARNINGS Year Ended December 31, 1981 With Comparitive Totals For Year Ended December 31, 1980 Public Christenson Totals Liquor Utilities Building 1981 1980 Sales and cost of sales: Sales $1,743,846 $1,743,846 $1,661,818 Cost of sales 1,399,165 1,399,165 1,328,573 Gross profit 344,681 -0- -0- 344,681 333,245 Operating revenues: Water sales and sewer rents $1,494,168 1,494,168 1,404,119 Connection permits 1,704 1,704 2,079 Miscellaneous revenues 64,209 64,209 71,511 ,_ Rental income $ 17,731 17,731 36,990 Total operating revenue -0- 1,560,081 17,731 1,577,812 1,514,699 Operating expenses: Personal services 152,700 358,952 540 512,192 484,825 Supplies and other charges 73,308 1,212,601 34,701 1,320,610 1,030,486 Depreciation 11,463 110,117 121,580 123,389 Total operating expenses 237,471 1,681,670 35,241 1,954,382 1,638,700 Operating income (loss) 107,210 (121,589) (17,510) (31 ,889) 209,244 Nonoperating revenues (expenses) : Intergovernmental revenue 17,356 284,653 302,009 7,227 Interest on investment 70,344 356,521 426,865 294,704 - Tap fees 445 445 1,125 Debt service - Interest expense (14,490) (14,490) (19,341) _ Fiscal agent fees (191) (191) (167) Current value credit 14,327 14,327 13,613 Miscellaneous revenue 15,421 382 15,803 16,905 Land acquisition _ (274,995) (274,995) Total non-operating revenue (expenses) 85,765 373,968 10,040 469,773 314,066 Income (loss) before operating transfers 192,975 252,379 (7 ,470) 437,884 523,310 Operating transfers from (to) : General Fund (90,000) (90,000) (85,000) Special Assessment Fund (9,141) Revolving Fund 8,360 8,360 21,030 -- Total operating transfers (90,000) 8,360 -0- (81,640) (73,111) Net income 102,975 260,739 (7,470) 356,244 450,199 Retained earnings January 1 860,634 4,080,709 7,470 4,94 8,813 4,498,614 Retained earnings December 31 $ 963,609 $4,341,448 $ -0- $5,305,057 $4,948,813 90 EXHIBIT G-3 CITY OF FRIDLEY, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION Year Ended December 31, 1981 With Comparative Totals For Year Ended December 31, 1980 Public Christenson Totals Liquor Utility Building 1981 1980 Sources of working capital: " Operations: Net income (loss) for the year $102,975 $260,739 $ (7,470) $ 356,244 $450,199 Items not requiring working -- capital - depreciation 11,463 110,117 121,580 123,389 Working capital provided by operations 114,438 370,856 (7,470) 477,824 573,588 Long term receivable 14,819 14,819 14,087 Net decrease in restricted assets 4,205 4,205 28,875 Total sources of working capital 114,438 389,880 (7,470) 496,848 616,550 Uses of working capital: Acquisition of fixed assets 10,118 63,053 73,171 22,964 Decrease in long term bonds payable 85,625 85,625 62,661 Decrease in deferred revenue 52,092 52,092 46,301 Total uses of working capital 10,118 200,770 -0- 210,888 131,926 Net increase (decrease) in working capital $104,320 $189,110 $ (7,470) $ 285,960 $484,624 Elements of net increase (decrease) _ in working capital: Cash $ 51,721 $(88,211) $(285,429) $(321,919) $315,156 Investments 63,048 313,988 (5,700) 371,336 238,226 Receivables 54 11,939 (1,707) 10,286 2,681 Inventory 6,047 1,636 7,683 22,899 Prepaid expenses (9,880) 16,110 6,230 16,611 Due from other governments (40,114) 284,653 244,539 (29,373) Due from other funds (13,743) (13,743) (12,725) Accounts payable 4,864 24,896 713 30,473 (109,333) Contracts payable (877) (877) Salaries payable (288) (404) (692) (4,607) Due to other government units (11, 246) (47,985) (59,231) Bonds payable 11,875 11,875 45,089 Net increase (decrease) in working capital $104,320 $189,110 $ (7,470) $ 285,960 $484,624 91 EXHIBIT G-4 CITY OF FRIDLEY, MINNESOTA LIQUOR ENTERPRISE FUND COMPARATIVE BALANCE SHEET December 31, 1981 and 1980 1981 1980 Assets Current assets: Cash (deficit) $ 113,964 $ 62,243 Investments, at cost 540,048 477,000 Accounts receivable 54 -. Inventories at cost 188,954 182,907 Prepaid expenses 9,880 Total current assets 843,020 732,030 Property and equipment, at cost: Land improvement 68,431 68,431 Buildings 140,328 130,210 Furniture, fixtures and equipment 77,503 78,372 Signs and automotive 16,462 16,462 302,724 293,475 Less: Accumulated depreciation (92,656) (82,062) Net property and equipment 210,068 211,413 Total assets $1,053,088 $943,443 Liabilities and Fund Equity Current liabilities: Accounts payable $ 76,541 $ 81 ,405 Salaries payable 1,692 1,404 Due to other governments 11,246 Total liabilities 89,479 82,809 Fund equity: Retained earnings - unreserved 963,609 860,634 ., Total liabilities and fund equity $1,053,088 $943,443 92 EXHIBIT G-5 CITY OF FRIDLEY, MINNESOTA LIQUOR ENTERPRISE FUND COMPARATIVE STATEMENT OF REVENUES EXPENSES AND CHANGES IN RETAINED EARNINGS Years Ended December 31, 1981 and 1980 1981 1980 Sales and cost of sales: Sales $1,743,846 $1,661,818 Cost of sales 1,399,165 1,328,573 Gross profit 344,681 333,245 Operating expenses: Selling: Personal services 104,707 98,805 -- Supplies and other charges 5,038 5,086 Total selling expense 109,745 103,891 _ Overhead: Supplies and other charges 55,856 51,545 Depreciation 11,463 10,299 Total overhead expenses 67,319 61,844 Administrative: Personal services 47,993 41,772 Supplies and other charges 12,414 13,335 Total administrative 60,407 55,107 Total operating expenses 237,471 220,842 Operating income 107,210 112,403 Non-operating revenues: Interest on investments 70,344 42,706 Miscellaneous revenue 15,421 16,176 Total non-operating revenues 85,765 58,882 Income before operating transfers 192,975 171,285 Operating transfer to General Fund (90,000) (85,000) Net income 102,975 86,285 Retained earnings January 1 860,634 774,349 Retained earnings December 31 $ 963,609 $ 860,634 93 — EXHIBIT G-6 CITY OF FRIDLEY, MINNESOTA LIQUOR ENTERPRISE FUND COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION Years Ended December 31, 1981 and 1980 1981 1980 Sources of working capital: Operations: Net income for the year $102,975 $86,285 Items not requiring working capital - depreciation 11,463 10,299 Total sources of working capital 114,438 96,584 Uses of working capital: Acquisition of fixed assets 10,118 5,721 Net increase in working capital $104,320 $90,863 Elements of net increase (decrease) in working capital: — Cash $ 51,721 $64,701 Investments 63,048 83,924 Receivables 54 (1,413) Inventory 6,047 21,498 Prepaid expenses (9,880) 4,717 Accounts payable . 4,864 (81,160) Salaries payable (288) (1,404) Due to other governments (11,246) Net increase in working capital $104,320 $90,863 94 CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITY ENTERPRISE FUND COMPARATIVE BALANCE SHEET December 31, 1981 and 1980 1981 1980 Assets —" Current assets: Cash (deficit) $ 110,136 $ 198,347 ., Investments, at cost 2,538,288 2,224,300 Accounts receivable 316,799 304,860 Due from other governments 12,799 52,913 ._ Due from other funds 14,845 28,588 Inventories at cost 6,886 5,250 Prepaid expense 70,279 54,169 Total current assets 3,070,032 2,868,427 Long-term receivable - Metropolitan Waste Control Commission 383,235 398,054 .., Restricted assets: Cash (deficit) (20,678) (760) Investments, at cost 226,113 210,400 Total restricted assets 205,435 209,640 Property and equipment , at cost: Land and improvement 154,88]/ 154,881 Buildings 754,60Y 754,608 Machinery and equipment 1,995,560 1,932,513 ..., Other improvements 123,909" 123,909 Water and sewer lines 10,166,680 10,166,680 13,195,644 13,132,591 Less: Accumulated depreciation (1,550,828) (1,440,711) —" Net property and equipment 11,644,816 11,691,880 Total assets $15,303,518 $15,168,001 96 EXHIBIT G-7 1981 1980 Liabilities And Fund Equity Current liabilities: Accounts payable $ 26,887 $ 51,783 Contracts payable 877 Salaries payable 3,607 3,203 Due to other government units 47,985 Bonds payable 50,000 61,875 Total current liabilities 129,356 116,861 Long term liabilities: Bonds payable (net of current position) 270,000 355,625 Deferred revenue 396,034 448,126 Total long term liabilites 666,034 803,751 Total liabilities 795,390 920,612 Fund equity: Contribution capital 10,166,680 10,166,680 Retained earnings - unreserved 4,341,448 4,UbU,709 Total fund equity 14,508,128 14,247,389 Total liabilities and fund equity $15,303,518 $15,168,001 97 EXHIBIT G-8 CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITY ENTERPRISE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Years Ended December 31, 1981 and 1980 1981 1980 Operating revenues: Water sales and sewer rents $1,494,168 $1,404,119 Connection permits 1,704 2,079 Miscellaneous revenues 64,209 71,511 Total operating revenues 1,560,081 1,477,709 Operating expenses: Personal services 358,952 342,933 Supplies and other charges 1,212,601 920,947 Depreciation 110,117 113,090 Total operating expenses 1,681,670 1,376,970 Operating income (121,589) 100,739 Non-operating revenues (expenses) : Intergovernmental revenue - federal grant 17 ,356 7,227 Interest on investments 356,521 251,071 Tap fees 445 1, 125 Debt service - Interest expense (14,490) (19,341) Fiscal agent fees (191) (167) ^ Current value credit 14,327 13,613 Total non-operating revenues (expenses) 373,968 253,528 ,^ Income before operating transfers 252,379 354,267 Operating transfers from (to) : Special Assessment Fund (9,141) Revolving Fund 8,360 21,030 Total operating transfers 8,360 11,889 Net income 260,739 366,156 Retained earnings January 1 4,080,709 3,714,553 Retained earnings December 31 $4,341,448 $4,080,709 98 EXHIBIT G-9 CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITY ENTERPRISE FUND COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION Years Ended December 31, 1981 and 1980 1981 1980 Sources of working capital: .� Operations: Net income $260,739 $366,156 Items not requiring working capital - depreciation 110,117 113,090 Working capital provided by operations 370,856 479,246 Long term receivable 14,819 14,087 Net decrease in restricted assets 4,205 28,875 Total sources of working capital 389,880 522,208 Uses of working capital: Acquisition of fixed assets 63,053 17,243 Decrease in long term revenue bonds payable 85,625 62,661 -- Decrease in deferred revenue 52,092 46,301 Total uses of working capital 200,770 126,205 Net increase in working capital $189,110 $396,003 Elements of net increase (decrease) in working capital: Cash $(88,211) $250,640 Investments 313,988 158,374 Receivables 11,939 2,079 Inventory 1,636 1,401 Prepaid expenses 16,110 11,894 Due from other governments (40,114) (29,373) Due from other funds (13,743) (12,725) Accounts payable 24,896 (28,173) _ Contracts payable (877) Salaries payable (404) (3,203) Due to other governments (47,985) Bonds payable 11,875 45,089 Net increase in working capital $189,110 $396,003 99 EXHIBIT G-1C CITY OF FRIDLEY, MINNESOTA C HRI STE NSON BUILDING ENTERPRISE FUND COMPARATIVE BALANCE SHEET December 31, 1981 and 1980 Assets 1981 1980 Cash (deficit) $(284,961) $ 468 Investments, at cost 5,700 Accounts receivable 308 2.,015 Due from other governments 284,653 -" Total assets $ -0- $8,183 Liabilities and Fund Equity Liabilities: Accounts payable $ -0- $ 713 — Fund equity: Retained earnings - unreserved -0- $7,470 Total liabilities and fund equity $ -0- $8,183 100 EXHIBIT G-11 CITY OF FRIDLEY, MINNESOTA CHRISTENSON BUILDING ENTERPRISE FUND COMPARATIVE STATEME NT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS "^ Years Ended December 31, 1981 and 1980 _. 1981 1980 Operating revenues: Rental income $ 17,731 $36,990 Operating expenses: Personal services 540 1,315 Supplies and other charges 34,701 39,573 Total operating expenses 35,241 40,888 Operating income (loss) (17,510) (3,898) Non-operating revenues (expenses) : Intergovernmental revenue - local grant 284,653 Interest on investments 927 Miscellaneous revenue 382 729 Land acquisition (274,995) Total non-operating revenues (expenses) 10,040 1,656 Net income (loss) (7,470) (2,242) Retained earnings January 1 7,470 9,712 Retained earnings December 31 3 -0- 3 7,470 101 — EXHIBIT C-12 CITY OF FRIDLEY, MINNESOTA CHRISTENSON BUILDING ENTERPRISE FUND COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION Years Ended December 31, 1981 and 1980 1981 1980 — Sources of working capital: Operations: — Net income (loss) $ (7,470) $(2,242) — Elements of net increase (decrease) in working capital: Cash $(285,429) $ (185) Investments (5,700) (4,072) — Receivables (1,707) 2,015 Due from other governmental units 284,653 Accounts payable 713 Net increase (decrease) in working capital $ (7,470) $(2,242) --t 102 INTERNAL SERVICE FUNDS NDS 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 December 31, 1981 AND 1980 1981 1980 Assets Cash $(137,000) $410,531 Investments, at cost 648,572 _ Accounts receivable 118 Total assets $ 511,690 $410,531 Liabilities and Fund Equity Liabilities: Accounts payable $ 2,953 Salaries payable 155 Leave payable $ 198,213 207,628 Total liabilities 198,213 210,736 Fund equity: Retained earnings - Reser ved for employee benefits 313,477 199,795 Total liabilities and fund equity $ 511,690 $410,531 103 EXHIBIT H-2 CITY OF FRIDLEY, MINNESOTA EMPLOYEE BENEFITS INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF REVENUES , EXPENSES AND CHANGES IN RETAINED EARNINGS Years Ended December 31, 1981 and 1980 1981 1980 Operating revenues: Charges for services $790,849 $199,795 Operating expenses: Benefit payments 738,698 -0- Operating income 52,151 199,795 Non-operating revenues: ,.., Interest inc ome 11,585 Refunds 49,946 Total non-operating revenues 61,531 -0- Net income 113,682 199,795 Retained earnings January 1 199,795 -0- -- Retained earnings December 31 $313,477 $199,795 104 EXHIBIT H-3 CITY OF FRIDLEY, MINNESOTA _ EMPLOYEE FRINGE BENEFITS INTERNAL SERVICE FUND STATEMENT OF CHANGES IN FINANCIAL POSITION Years Ended December 31, 1981 and 1980 a 1981 1980 Sources of working capital: Operations: Net income $ 113,682 $199,795 Elements of net increase (decrease) in working capital: Cash $(547,531) $410,531 Investments 648,572 Accounts receivable 118 a Accounts payable 2,953 (2,953) Salaries payable 155 (155) Leave payable 9,415 (207,628) Net increase in working capital $ 113,682 $199,795 a a 105 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. I EXHIBIT I-1 CITY OF FRIDLEY, MINNESOTA TRUST AND AGENCY FUND COMPARATIVE BALANCE SHEET December 31, 1981 and 1980 1981 1980 Assets Cash $ 3,165 $ 75 Investments, at cost 31,804 11,500 Total assets $34,969 $11,575 Liabilities and Fund Balance Liabilities: Accounts payable $ 2,128 Deposits payable 27,902 $ 9,081 Total liabilities 30,030 9,081 •• Fund balance: Unreserved - undesignated 4,939 2,494 Total liabilities and fund balance $34,969 $11,575 107 EXHIBIT I-2 ^ CITY OF FRIDLEY, MINNESOTA TRUST AND AGENCY FUND COMPARATIVE STATEMENT OF REVENUES , EXPENSES AND CHANGES IN FUND BALANCE Years Ended December 31, 1981 and 1980 ..., 1981 1980 — Revenues: Interest on investments $2,445 $1,483 Fund balance, January 1 2,494 1,011 Fund balance, December 31 $4,939 $2,494 108 GENERAL FIXED ASSETS GROUP OF ACCOUNTS General fixed asset group of accounts are set up to account for long-lived assets not accounted for in an enterprise, trust or intergovernmental service fund. 1 EXHIBIT J-1 CITY OF FRIDLEY, MINNESOTA COMPARATIVE STATEMENT OF GENERAL FIXED ASSETS December 31, 1981 and 1980 1981 1980 General fixed assets: Land $ 1,656,778 $ 1,656,778 Building 1,629,919 1,200,801 Improvements other than building 13,350,277 12,311,446 Furniture, fixtures and office equipment 256,691 295,200 Machinery and equipment 1,378,183 1,320,247 Specialized equipment 94,454 86,867 Construction in progress 680,205 1,669,625 Total general fixed assets $19,046,507 $18,540,964 Investment in general fixed assets from: Special assessments $12,272,319 $11,952,853 State aid 302,497 302,497 General Fund 3,928,374 3,842,148 Other funds 522,174 522,174 Liquor Fund 15,421 15,421 Contributions 676,969 676,969 General obligation bonds 856,597 856,597 Public Utility Fund 2,522 2,522 Grants 469,634 369,783 .� Total investment in general fixed assets $19,046,507 $18,540,964 109 CITY OF FRIDLEY, MINNESOTA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY Year Ended December 31, 1981 Total Land Buildings General government -' City manager $ 40,955 Accounting 57,042 Assessing 7,140 -^ Elections 23,999 Planning 18,896 Civic center 731,390 $ 18,448 $ 664,690 Total general government 879,422 18,448 664,690 Public safety Police protection 245,654 Fire protection 368,162 70,281 Inspectional services 1,819 Civil defense 29, 069 Total public safety 644,704 -0- 70,281 Public works Engineering 21,727 Street improvements 7,947,531 5,103 Water, sewer and storm sewer 5,253,323 Traffic signal 120,288 City garage 478,677 97,940 333,114 Total public works 13,821,546 103,043 333,114 Parks/Naturalist Parks 2,516 ,961 1,527,867 119,702 Naturalist 503,669 7,420 442,132 Total parks/naturalist 3,020,630 1,535,287 561,834 Total general fixed - assets allocated to functions $18,366,302 $1,656,778 $1,629,919 Construction in progress 680,205 Total fixed assets $19,046,507 110 EXHIBIT J-2 Furniture Other and Specialized Improvements Machinery Equipment Equipment $ 7,344 $ 29,675 $ 3,936 55,034 2,008 7,140 23,999 5,850 13,046 336 41,647 6,269 -0- 13,530 170,541 12,213 206,290 26,098 13,266 $ 21,521 247,493 10,115 18,752 1,404 415 26,980 2,089 21,521 482,167 38,302 32,433 16,603 3,983 1,141 7,428,253 514,175 5,253,323 120,288 1,096 35,057 11, 267 203 .. 12,802,960 565,835 15,250 1,344 492,493 303,020 25,415 48,464 33,303 13,631 7,183 525,796 316,651 32,598 48,464 $13,350,277 $1,378,183 $256,691 $94,454 111 EXHIBIT J-3 CITY OF FRIDLEY, MINNESOTA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY Year Ended December 31, 1981 General General Fixed Fixed Assets Assets - 1/1/81 Additions Deductions 12/31/81 Function and activity General government City manager $ 39,882 $ 3,645 $ 2,572 $ 40,955 Accounting 61,969 913 5,840 57,042 - Assessing 7,379 430 669 7,140 Elections 24,681 682 23,999 Planning 18,271 712 87 18,896 -- Civic center 716,048 15,567 225 731,390 Total general government 868,230 21,267 10,075 879,422 Public safety Police protection 244,869 76,133 75,348 245,654 Fire protection 357,365 48,579 37,782 368,162 Inspection services 2,041 222 1,819 - Civil defense 29,069 29,069 Total public safety 633,344 124,712 113,352 644,704 Public works Engineering 53,562 254 32,089 21,727 Street improvement 7,376,723 570,808 7,947,531 Water, sewer and storm sewer 4,886,018 367,341 36 5,253,323 Traffic signal 101,561 18,727 120,288 City garage 473,860 17,332 12,515 478,677 Total public works 12,8 91,724 974,462 44,640 13,8 21,546 Parks/Naturalist Parks 2,403,607 124,540 11,186 2,516,961 Naturalist 74,434 430,434 1,199 503,669 Total parks/naturalist 2,478,041 554,974 12,385 3,020,630 Construction in progress 1,669,625 476,131 1,465,551 680,205 Total general fixed assets $18,540,964 $2,151,546 $1,646,003 $19,046,507 112 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 FRIDLEY, MINNESOTA COMPARATIVE STATEMENT OF GENERAL LONG-TERM DEBT December 31, 1981 and 1980 1981 1980 Amount available to be provided for the '-' payment of general long-term debt Amount available in general debt service fund $ 76,953 $ 69,480 Amount to be provided by future taxes 2,329,119 200,459 Total available and to be provided $2,406,072 $269,939 General long-term debt payable -- General long-term debt payable: General obligation tax increment redevelopment bonds $2,200,000 Serial bonds 170,000 $200,000 Contracts-city garage and garage addition 21,227 41,351 Due to public utility fund 14,845 28,588 Total general long-term debt payable $2,406,072 $269,939 113 STATISTICAL SECTION _ II TABLE 1 CITY OF FRIDLEY, MINNESOTA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) LAST TEN FISCAL YEARS General Public Civic Public Parks and Debt Year Government Safety Center Works Recreation Service Total 1972 $293,510 $ 652,201 $ 56,562 $ 453,682 $ 351,739 $1,807,694 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 Note (1) Includes General, Special Revenue, and Debt Service Funds 115 TABLE 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 - 1972 $ 973,103 $192,456 $ 541,938 $ 47,761 $ 90,056 $1 ,845,314 1973 1 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 4,819,892 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 Not e (1) Includes General, Special Revenue, and Debt Service Funds 116 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 1972 $1,139,871 $1,119,975 98.25 75,812 $1,195,787 1.0491 :1 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 2,19 9, 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 :1 117 CITY OF FRIDLEY, MINNESOTA ASSESSED AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY LAST TEN FISCAL YEARS Fiscal. Period 1972 1973 1974 1975 Population 30,240 31,143 (2) 32,542 32,486 (3) Real property Estimated market value $224,892,331 $266,730,657 $294,415,529 $325,394,031 Assessor's limited market value $ 69,941,515 $242,991,629 $270,273,456 $288,949,935 Assessed value Homestead $ 5,295,419 $ 16,233,935 $ 16,582,864 $ 17,104,208 Excess and non-homestead 19,425,726 73,166,443 84,043,948 90,832,944 Area-wide allocation Tax-increment value Taxable value $ 24,721,145 $ 89,400,378 $100,626,812 $104,796,399 Personal Property Estimated market value - Taxable property $ 36,379,141 $ 15,796,166 $ 17,323,420 $ 18,183,599 Assessor's value - Taxable property $ 11,313,912 $ 14,390,307 $ 15,902,900 $ 16,147,000 Taxable value - Taxable property $ 4,080,719 $ 6,187,860 $ 6,838,247 $ 6,943,210 Total real and personal property Estimated market value $261,271,472 $282,526,823 $311,738,949 $343,577,630 Limited market value $ 81,255,428 $257,381,936 $286,176,356 $305,096,935 — Total taxable value $ 28,801,865 $ 95,588,238 $107,465,059 $111,739,609 Ratio of market value ,� To limited market value .311:1** .911: 1* .918:1* .888:1* To taxable value .110:1 .338 :1 .345 :1 .325:1 Per capita valuations — Estimated market value $ 8,640 $ 9,072 $ 9,580 $ 10,576 Taxable value $ 952 $ 3,069 $ 3,302 $ 3,440 Mote *Source - State of Minnesota Department of Revenue **Source - Anoka County Assessor's Office (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. 118 TABLE 4 Fiscal Period 1976 1977 1978 1979 1980 1981 31,570 31,940 33,450 32,664 30,214 30,200 $367,264,013 $405,285,288 $456,038,596 $474,610,022 $555,096,298 .$632,523,959 $327,232,236 $363,541,172 $408,865,261 $458,973,683 $522,308,032 $ N/A (3) $ 17,644,329 $ 19,607,606 $ 20,453,732 $ 21,633,558 $ 24,392,539 $ 59,013,036 105,665,396 117,424,505 124,640,289 134,204,943 141,946,084 121,924,290 (4,541,034) (4,812,211) (6,271,738) (7,376,217) (8,858,508) (10,022,598) (954,050) (2,708,711) $118,768,691 $132,219,900 $138,822,283 $148,462,284 $156,526,065 $168,206,017 $ 18,073,064 $ 18,167,447 $ 19,340,803 $ 17,424,500 $ 17,899,900 $ 18,731,800 $ 16,103,100 $ 16,296,200 $ 17,348,700 $ 17,424,500 $ 17,899,900 $ 18,731,800 $ 6,9 24,333 $ 7,007,366 $ 7,4 59,941 $ 7,492,535 $ 7,696,957 $ 8,054,674 $385,337,077 $423,452,735 $475,379,399 $492,034,522 $572,996,198 $651,255,759 $343,335,336 $379,837,372 $426,213,961 $476,398,183 $540,207,932 $ N/A (3) $125,693,024 $139,227,266 $146,282,224 $155,954,819 $164,223,022 $176,260,691 .891:1* .897:1* .897:1* .968:1 .943:1 N/A .326 :1 .329 :1 .308 :1 .317 :1 .287 :1 .271 :1 12,206 $ 12,689 $ 14,212 $ 15,064 $ 18,965 $ 21,565 $ 3,981 $ 4,359 $ 4,373 $ 4,775 $ 5,435 $ 5,836 (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. 119 CITY OF FRIDLEY, MINNESOTA STATEMENT OF VALUATIONS AND LEVIES BY CLASSES OF PROPERTY DECEMBER 31, 1981 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 $ 27,871,336 $ (5,737,684) Industrial 48,079,831 (9,897,870) F.M.C. #85 4,326,531 (890,674) Gas 1,289,742 (265,511) Electric 2,438,401 (501,977) P.U. : 405,713 (83,521) Vacant Land 1,237,920 Apartments 21,691,882 Residential 81 ,650,644 Distribution $7,354,639 (1) Totals $188,992,000 $(17,377,237) $7,354,639 _. 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 79.4137% 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 103.003. This money then goes into the Metro Pool. The City of Fridley 120 TABLE 5 Assessed Valuation Allocated to Adjusted Percent Dollars Tax Increment Assessed of Total of City Financing Value City Tax Tax $ (254,029) $ 21,879,623 12.427 $ 343,991 ,.., 38,181,961 21.686 600,297 3,435,857 1.951 54,019 1,024,231 .582 16,103 1,936,424 1.100 30,444 322,192 .183 5,066 (20,362) 1,217,558 .692 19,142 (2,383,690) 19,308,192 10.966 303,563 (50,630) 81,600,014 46.346 1,282,916 7,354,639 4.067 112,570 $(2,708,711) $176,260,691 100.00 $2,768,111 received $112,570.10 from this pool. — 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. 121 CITY OF FRIDLEY, MINNESOTA SIGNIFICANT MINNESOTA TAX POLICIES DECEMBER 31, 1981 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 appraises representative 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 Assesssors 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" ($25,000 for taxes due in 1981) is assessed at 16%, the next 25,000 assessed at 22%, and the balance at 28%. The assessed value of a homestead residence with a market value of $50,000 would be $9,500 for taxes collectible in 1981 (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 38% ( $50,000 value x 38% = $19,000) . Industrial/commercial/utility property is assessed at 43% of market value. 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 homeowner's tax or a renter's imputed tax exceeds certain percentages of household 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) . 122 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 1972 39.58 Mills 173.68 Mills 162.66 Mills 160.27 Mills 172.87 Mills 73.59 Mills 1973 12.71 " 54.92 49.88 52.54 56.01 " 21.77 " 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 " 37.99 " 41.48 " 41.12 " 51.08 " 27.91 " -. *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. • 1 Year Tax Levies 1972 $1,139,978 $171,539 $1,087,369 $2,292,156 $1,195,816 $2 ,119,529 -- 1973 1,214,927 183,201 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 1,759,295 3,493,129 2 ,144,854* 4,904,234 *Includes Vocational/Technical District No. 916. 124 - TABLE 6 Totals "' Special School School School School Districts District District District District Total No. 11 No. 13 No. 14 No. 16 5.60 Mills 292.45 Mills 281.43 Mills 279.04 Mills 291.64 Mills 2.38** " 91.78 86.74 " 89.40 " 92.87 " 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.l4** " 98.43 " 89.12 " 96.85 " 104.27 " 3.35** " 90.41 " 87.74 " 89.87 " 104.95 " 3.60** " 87.44 " 91.48 " 89.83 " 106.58 " 4.36** " 85.54 " 89.47 " 89.11 " 99.08 " S Yearly Net Tax Total Total Local Percentage Contribution Increment Tax Tax Levies Increase To Metro Pool District Levies 0.61,290 $ 8,167,677 (21%) $ 8,167,677 204,380 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 n.... 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 16,084,826 4% 1,113,321 240,295 17,438,442 ... S ... 125 TABLE 7 CITY OF FRIDLEY, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS ,.. LAST TEN FISCAL YEARS Ratio Total Ratio of Outstand- of Total ing Current Collec- Current Collec- Delin- tions and Current Current tions to quent to Delin- Assess- Assess- Amount Assess- Current quent .� Fiscal ments ments Due ments Total Levy Assess- Year Due Collected (Percent) Collected Collected (Percent) ments 1972 $746,971 $634,697 84.97 $119,204 $753,901 100.93 $727,909 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 73.02 273,777 969,964 101.73 736,530 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 777,007 699,145 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 95,451 724,203 103.56 404,012 1981 785,128 755,588 96.24 87,206 842,794 107.34 347,975 126 CITY OF FRIDLEY, MINNESOTA HISTORY OF TAX LEVIES AND MILL RATES LAST TEN FISCAL YEARS 1972 1973 1974 1975 Tax levies General Fund $ 923,625 $1,075,464 $1,178,854 $1,624,144 P.E.R.A. Fund 59,566 53,954 95,895 Fire Relief Association Fund 17,602 13,776 ... Police Pension Association Fund 57,547 49,992 75,723 General Debt Service Funds 81,531 67,200 39,200 38,400 Capital Improvement Fund Total $1,139,871 $1,260,386 $1,389,672 $1,662,544 Mill rate .. General Fund 32.07 10.84 10.97 14.53 P.E.R.A. Fund 2.07 .54 .89 Fire Relief Association Fund .61 .14 Police Pension Association Fund 2.00 . 51 . 71 General Debt Service Funds 2.83 .68 .37 .35 Capital Improvement Fund Total 39.58 12.71 12.94 14.88 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, Onapter 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. 128 .� TABLE 8 1976 1977 1978 1979 1980 1981 $1,769,965 $1,974,563 $2 ,114, 917 $2,264,856 $2,428,376 $2,684, 615 37,500 36,600 41, 000 39,900 38,800 38,570 46,596 45,920 43,401 43,368 45,000 44,770 $1,854,061 $2,057,083 $2,199,318 $2,348,124 $2,512,176 $2,767,955 14.09 14.18 14.47 14.52 14. 795 15.248 .30 .27 .28 .26 .237 .220 .37 .33 .30 .28 .274 .254 14.76 14.78 15.05 15.06 15.306 15.722 (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. i 1�. 129 CITY OF FRIDLEY, MINNESOTA RATIO OF NET BONDED DEBT .� TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS Fiscal Assessed Gross Year Population Value Bonded Debt 1972 30,240 $ 28,801,865 $9,756,000 1973 31,143 95,588,238 9,852,000 1974 32,542 107,465,059 8,885,000 1975 32,486 111,739,609 9,385,000 1976 31,570 125,693,024 8,210,000 1977 31,940 139,227,266 6,775,000 ^ 1978 33,450 146,282,224 6,385,000 1979 32,664 155,954,819 6,545,000 1980 30,214 164,223,022 6,105,000 1981 30,200 176,260,691 8,954,000 Note: The assessed valuation figure used in this table is after the contribution from the Metro Pool 130 TABLE 9 Net Ratio of Net Net Bonded Less Debt Bonded Bonded Debt to Debt Per Service Funds Debt Assessed Value Capita 53,870,814 $5,885,186 .2043:1 1194 3,801,883 6,050,117 .0633:1 194 3,010,682 5,874,318 .0547 :1 181 3,623,017 5,761,983 .0516 :1 177 4,300,690 3,909,310 .0311 :1 124 4,209,680 2,565,320 .0184:1 80 4,684,489 1,700,511 .0116 :1 51 4,829,151 1, 715 ,849 .0110:1 53 5,271,242 833,758 .0051 :1 28 6,258,635 2,695,365 .0153:1 89 131 TABLE 10 CITY OF FRIDLEY, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN DECEMBER 31, 1981 ^. Assessed Value $188,992,000 (A) Debt Limit 6.667 Percent of Assessed Value $12,600,097 Amount of Debt Applicable to Debt Limit: Total Bonded Debt $8,954,000 (B) Deductions: General Debt Service Fund Assets $ 76,953 Tax Increment Redevelopment Bonds 2,200,000 Special Assessment Bonds 6,264,000 Water Revenue and Improvement Bonds 320,000 8,860,953 Total Amount of Debt Applicable to Debt Limit 93,047 Legal Debt Margin $12,507,050 Notes (A) M.S.A. Section 475.53 (see following page) (B) M.S.A. Section 475.51 (see following page) 132 CITY OF FRIDLEY, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED) YEAR ENDED DECEMBER 31, 1981 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 "Subdivision 4. "Net Debt" means the amount remaining after deducting from — its gross debt the amount of current revenues which are applicable within the current fiscal year to the payment of any debt, and the aggregate of the principal of the following: (1) Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially benefited thereby , including those which are general — obligations of the municipality issuing them, if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments. (2) Warrants or orders having no definite or fixed maturity. (3) Obligations payable wholly from the income from revenue producing conveniences. (4) Obligations issued to create or maintain a permanent improvement revolving fund. (5) Obligations issued for the acquisition, and betterment of public waterworks systems, and public lighting, heating or power systems, and of any combination thereof or for any other public convenience from which a revenue is or may be derived. (6) Debt service loans and capital loans made to a school district under the provisions of sections 124.42 and 124.43. — (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 ." 133 TABLE 11 CITY OF FRIDLEY COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT AND COMPARATIVE DEBT RATIOS DECEMBER 31, 1981 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 $ 8,954,000 $ 6,258,635 $ 2,695,365 100.000 $ 2,695,365 Overlapping debt: School Districts No. 11 $ 24,205,000 $ 3,837,252 $ 20,367,748 2.023 $ 412,039 No. 13 3,265,000 1,540,766 1,724,234 32.186 554,962 No. 14 2,925,000 461,000 2,464,000 100.000 2,464,000 No. 16 12,250,374 2,911,410 9,338,964 42.422 3,961,775 Metro Transit 13,200,000 2,748,000 10,452,000 1.721 179,879 Metro Council 241,571,000 38,237,950 203,333,050 1.581 3,214,696 Anoka County 6,565,000 1,277,523 5,287,477 20.750 1,097,151 Vocational/Technical District No. 916 5,605,000 599,059 5,005,941 2.784 139,365 Overlapping debt 309,586,374 51,612,960 275,973,414 12,023,867 Total direct and overlapping debt $318,540,374 $57,871,595 $260,668,779 $14,719,232 134 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 1972 $60,000 $23,520 $ 83,520 $1,953,180 .0428:1 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 .0097:1 135 1 TABLE 13 CITY OF FRIDLEY, MINNESOTA REVENUE BOND COVERAGE WATERWORKS BONDS LAST TEN FISCAL YEARS Net revenue Direct Direct available Fiscal operating operating for debt Debt service requirements year revenue expenses service Principal Interest Total Coverage 1972 $1,006,611 $ 806,221 $ 200,390 $15,000 $18,375 $33,375 6.0 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 16,625 62,812 4.2 1978 1,40 4,459 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 7,027 64,171 1.6 1981 1,560,081 1,681,670 (121,589) 57,570 4,015 61,765 - --• 136 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) 1972 30,240 4,147 9,322 3.3 1973 31,143 4,644 (3) 22.6 9,298 3.4 1974 32,542 5,141 22.7 9,220 3.5 1975 32,486 5,667 (3) 22.9 8,983 5.2 ... 1976 31,570 6,193 (3) 25. 1 8,712 5.1 1977 31,940 6,721 25.4 8,339 4.0 "" 1978 33,450 6,980 (3) 25.9 7,750 2.7 1979 32,664 7,239 (3) 26.2 7,119 2.8 1980 30,214 (2) 7,500 (3) 27.4 (2) 6,666 4.8 1981 30,200 -• 6,239 4.7 Sources: (1) Estimated by Metropolitan Council (2) Current Population Report - Bureau of Census (3) 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 * Unavailable 137 TABLE 15 CITY OF FRIDLEY, MINNESOTA PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS 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 -, 1972 82 $ 6,296,752 616 $11,843,557 $ 8,962 $261,271,472 $ 29,418,855 $290,690,327 1973 58 4,482,184 326 3,094,705 10,599 282,526,823 29,418,855 311,94 5,678 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 6,30 3,847 442 6,890,745 13,898 385,337,077 63,4 89,810 448,826,887 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 23,9 22,267 367 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 Source: (1) Fridley State Bank, Annual Financial Statement (2) Non-Taxable property is reevaluated by the county assessors every six years. * Estimated Market Value 138 TABLE 16 CITY OF FRIDLEY, MINNESOTA PRINCIPAL TAXPAYERS DECEMBER 31, 1981 Percent of 1981 Total Assessed Assessed Rank Taxpayer Type of Business Valuation Valuation 1. Onan Corporation Portable electric generators $16,341,300 8 .65 2. FMC Corporation Naval ordinance 15,502,000 8.20 3. Medtronics, Inc . Electro-medical devices 15,369 ,000 8.13 4. Target Stores Discount store and warehouse 9,993,000 5.29 5. Maurice Fillister Georgetown apartments 7,597 ,600 4.02 6. LaMaur, Inc. Cosmetics 6,011,100 3.18 7. Midland Cooperatives Warehousing oil and grain products 4,790,800 2.53 8. Five Sands Development Meadowrun Apartments 4,543,900 2.40 9. Carter-Day Air control equipment 4,297,100 2.27 10. Holiday Village Discount department store 4,273,600 2.26 11. Pillsbury Totino's Frozen foods 3,783,500 2.00 -. 12. Rice Creek Townhouses Townhouses 3,715,600 1.97 13. Black Forest Apartments Apartments 3,683,700 1.95 14. Honeymead Products Lindseed oil and grain products 3,489,100 1.85 15. Wickes (Twin Stores) Discount furniture show/warehouse 2,393,300 1.27 Total 105,784,600 55.97 139 CITY OF FRIDLEY, MINNESOTA -■ INSURANCE COVERAGE DECEMBER 31, 1981 All risk, direct physical loss coverage Building and contents (except liquor stock) - 90% co-insurance $ 7,170,269 Boiler insurance 500,000 Contractor's equipment 276,150 Signs 16,148 All risk, fire and extended coverage-liquor stores and stock 336,700 Comprehensive liability Bodily injury Each person 500,000 Each occurrence 500,000 Property damage 100,000 Liquor liability 500,000/500,000 Excess liability 1,500,000 Automobile Liability 250,000/500,000 Comprehensive and collision Passenger vehicles Actual cash value Other vehicles Stated value Business interruption, liquor stores 168,000 Money and securities, inside and outside premises, all locations 15,000 Workers' compensation Statutory Errors and ommission insurance 1,000,000 PRINCIPAL OFFICIALS' ANNUAL SALARIES AND SURETY BONDS DECEMBER 31, 1981 Surety Name Position Salary Bond Na sim M. Qureshi City Manager $46,699 $50,000 Virgil C. Herrick City Attorney 15,600** None* Sidney C. Inman City Clerk/Treasurer 30,366 51,000 John G. Flora Public Works Director 36,675 None* -� James P. Hill Public Safety Director 37,850 None* Robert Aldrich Fire Chief 30,238 None* Charles A. Boudreau Parks and Recreation Director 33,003 None* *All employees are covered by a blanket faithful performance bond of $100,000. **Covers first thirty hours per month of basic service, balance billed at $40 per hour. 140 CITY OF FRIDLEY, MINNESOTA CITY CAPITAL IMPROVEMENT FINANCING POLICY DECEMBER 31, 1981 The policy of the City of Fridley regarding financing of major capital improvements is as follows: STREET, CURB AND GUTTER, SIDEWALK AND STORM SEWER IMPROVEMENTS It is the policy of the City to assess 100% of the cost of street surfacing, .� curb and gutter improvements and storm sewer improvements against benefited properties, less aid for construction received from the State of Minnesota. Properties owned by the City, the school districts, or other tax exempt organizations are treated in the same manner and assessed at the same rate as taxable properties. WATER AND SEWER IMPROVEMENTS Water and sewer lateral improvements are 100% assessed against benefited properties. Properties owned by tax exempt organizations are treated the same as taxable properties. The water and sewer main system has been substantially assessed against benefited properties. An exception to the above policy has been the cost of looping certain water system main lines which benefited no particular properties. This unassessed portion of the improvement cost is being financed by the Public Utility Fund. WELLS, RESERVOIRS, PUMPING STATIONS , ETC. These improvements have been financed from the income of the Public Utility Fund. ACQUISITION OF PARK LAND, CIVIC CENTER, ETC. It is the policy of the City to finance small park capital improvements out of the current General Fund operating budget. It is the policy of the City to finance major park capital improvements, such as the purchase of large parcels of land, with general obligation bonds. The City currently has one general obligation bond issue outstanding. This is for the Civic Center. The balance outstanding for this issue on December 31, 1981 was $170,000. 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, 1981 was $1,038,321. 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 1981, 7% of Revenue Sharing funds were used for capital outlay items, 42% for other expenses and 51% for personal services. 141 CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION DECEMBER 31, 19 81 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 Aal Elections Registered voters - Wards 1 and 3 only (1981) 10,028 Number of votes cast last election (1981) 1,342 Percent (%) voting - Wards 1 and 3 only 13.4% 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 30,214 1981 Estimated by Metropolitan Council 30,200 — Permanent Employees--As of December 31 Number 1970 115 19 71 105 -- 19 72 109 197 3 118 19 74 12 3 1975 130* 1976 129* 1977 148* 19 78 141* 1979 122 1980 126 19 81 129 *Includes CETA 142 CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED) DECEMBER 31, 1981 Fire protection Number of stations 1 Volunteer Firefighters 29 —' 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 121.47 Trunk highways 10.8 County roads 14.56 Sidewalks 9.5 Miles of sewer Storm 38.26 Sanitary 99.60 Miles of water mains 104.05 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 7,968 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 7,968 Average daily flow (includes infiltration/inflow) 3.13 million gallons 143 CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED) DECEMBER 31, 1981 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 22 0 22 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 16 16 32 ., 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 8 0 8 — Soccer fields 2 0 2 Football fields 1 9 10 144 CITY OF FRIDLEY, MINNESOTA GENERAL INFORMATION DECEMBER 31, 1981 LOCATION - TRANSPORTATION The City of Fridley, with a total land area of eleven square miles and an estimated population of 30,200, is located at the north boundary of Minneapolis and Columbia Heights, about eight miles from the Minneapolis central business district. Freight service is provided the area by local and interstate truck lines and the Burlington Northern Railroad and Minnesota Transfer Railway; transportation is available through Metropolitan Transit Commission facilities. Highways serving Fridley include Interstate #694 (beltline around the metropolitan area) and State Highways #65 and #47. Commercial airline service is available at Minneapolis-St. Paul International Airport , approximately twenty-five miles south, and private business aviation facilities are available at the Anoka County and Crystal Airports, both 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 iamb 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 Marly 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 150 plant 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 100 145 CITY OF FRIDLEY, MINNESOTA GENERAL INFORMATION (CONTINUED) DECEMBER 31, 1981 MEDICAL FACILITIES Medical facilities in Fridley include Unity Hospital, a 275-bed hospital with an adjacent clinic (Unity Professional Building) , Fridley Convalescent Home, the Fridley Medical Center; and another nursing home, Lynwood Manor. EDUCATION Fridley is served by four school districts, the major portion located within Fridley Independent School District No. 14. The Fridley School District operates three elementary schools, a junior high and a senior high school, employing 165 certified personnel in the education of about 3,431 students. Grace Parochial High School has an enrollment of 965. Portions of the Columbia Heights School District (13) , the Spring Lake Park School District (16) and Anoka/Hennepin School District (11) also lie within the City of Fridley. Those districts have an enrollment of 2,398 students living within the City of Fridley. Colleges and universities, vocational-technical and specialized training schools are .-, located throughout the metropolitan area within easy commuting distances of Fridley. eml .7 146