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1972 Financial Statements A. CITY OF FRIDLEY, MINNESOTA , FINANCIAL STATEMENTS DECEMBER 31 , 1 972 . GEORGFE AN:SEN`.COMPANY , Certified Public Accountants MINNEAPOLIS,MINNESOTA 584•L8 PM CITY OF FRIDLEY, MINNESOTA ELECTED AND APPOINTED OFFICIALS DECEMBER 31 , 1972 Term of office expires January Elected Mayor - Frank G. Liebl 1975 Councilmen Donald R. Mittelstadt 1973 Tim F. Breider 1973 Wallace R. Starwalt 1974 Everett F. Utter 1975 Effective January 1973 Mayor - Frank G. Liebl 1975 Councilmen /'1 Wallace R. Starwalt 1974 Everett F. Utter 1975 William J. Nee 1976 Tim F. Breider 1976 Appointed City Manager - Gerald R. Davis Clerk-Treasurer - Marvin C. Brunsell Attorney - Virgil C. Herrick Assessor - Mervin Herrmann Engineer - Nasim Qureshi r. CITY OF FRIDLEY, MINNESOTA TABLE OF CONTENTS Page Accountant's opinion 1 Comments 2 Balance sheets - All funds 8 General and special revenue funds Balance sheets 10 General Fund Statement of revenue - Actual compared with budget estimates 11 Statement of expenditures - Actual compared with budget estimates 12 Special Revenue funds - Statements of cash receipts and disbursements 17 Investment Fund Balance sheet 19 Statement of cash receipts and disbursements 79 Special assessment funds Balance sheets 20 Statements of cash receipts and disbursements 21 Individual fund balance sheets Construction 22 Debt service 24 General debt service funds Balance sheets 28 Statements of cash receipts and disbursements 28 Liquor Fund Balance sheet 29 Statement of income 30 Analysis fo changes in retained earnings 30 Statement of changes in financial position 33 Statement of operating expenses 34 CITY OF FRIDLEY, MINNESOTA "- TABLE OF CONTENTS (CONTINUED) Page Municipal Building Reserve Bond Fund Statement of changes in assets restricted for liquor revenue bond debt service Sinking Account 36 — Reserve Account 36 Water and Sewer Revenue Bond Fund _ Balance Sheet 36 Operation and Maintenance Account - Statement of income 37 Analysis of changes in retained earnings 37 Statement of changes in financial position 38 — Statement of changes in assets restricted for revenue bond debt service Sinking Account 39 -, Reserve Account 39 Construction Account 39 Trust and agency funds Balance sheets 40 Statements of cash receipts and disbursements 40 Statement of general fixed assets 41 Miscellaneous information - Statement of cash and security for deposits 43 Summary statement of cash receipts and disbursements 43 Bonds payable - All funds 44 - Debt service requirements - All funds 50 Certificates of indebtedness - General Fund 50 Assessed valuations , tax levies and mill rates 51 Tax levies and tax collections 52 Insurance coverage 53 Employees' surety bonds 53 r GEORGE M. HANSEN COMPANY Certified Public Accountants SOUTH PLAZA BUILDING MINNEAPOLIS,MINNESOTA 55416 wm nn To the City Council of Fridley, Minnesota We have examined the accompanying financial statements of the respective funds of the City of Fridley, Minnesota for the year ended December 31 , 1972. 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, such financial statements present fairly the financial position of the respective funds of the City of Fridley, Minnesota at December 31 , 1972 and the results of their operations for the year then ended , in conformity with generally accepted governmental accounting principles applied on a consistent basis. 72? .2)-44i,e0-,24-1 Co7rdr- August 2, 1973 2 CITY OF FRIDLEY, MINNESOTA - COMMENTS The City of Fridley operates under a charter which provides for a form of government - designated as the "Council-Manager Plan. " Under this plan as set forth in the Charter, "All discretionary powers of the city, both legislative and executive shall vest in and be exercised by the city council . It shall have complete control over - the city administration, but shall exercise this control exclusively through the city manager and shall not itself attempt to perform any administrative work. " The council is elected by popular vote and consists of five members , including the mayor who is chairman. The city manager is appointed by the council . The city financial statements are presented on the accrual basis of accounting whereby revenues are recorded when earned, except for general property taxes and - General Fund special assessments which are considered as revenue in the year collected. The financial statements which follow have been prepared to set forth individual fund balance sheets , analysis of changes in fund balance, actual revenue compared with _, budget estimates and other information. GENERAL FUND IEJ The General Fund was established to account for the revenues and expenditures necessary to provide basic governmental services to the City such as general government, public safety and highway maintenance. In the following statements , revenues are recorded by source, while expenditures are recorded by department. Included in "General property taxes" in the statement of revenue are property and bank excise taxes and payments from the State property tax relief fund for homestead tax credit. A plan of financial operation of the fund is set forth in the annual budget adopted by Council . The General Fund statements are prepared to show the budget estimate, actual amount and balance. A condensed summary of revenue and expenditures is shown below: REVENUE 1972 1971 Budget Budget Actual estimates Actual estimates General property taxes $ 973,103 $ 905,153 $ 955 ,838 $ 982,166 Licenses and permits 166,776 93,930 97,393 64,373 Fines and forfeitures 25,680 24,000 22,668 20,000 From use of money and property 59,251 33,600 40,660 24,400 Intergovernmental revenue 541 ,938 524,372 395,384 368,891 Charges for current services 47,761 53,565 56.254 50,890 Other revenue 30,805 17,190 26,352 10,600 Transfers from other funds 156,500 202,000 239,000 239,000 Prior year's fund balance 84,035 47,880 Total revenue $2,001 ,814 11 ,937,845 $1 ,833,549 $1 ,808,200 3 EXPENDITURES 1972 1971 Budget Budget Actual estimates Actual estimates General government $ 343,947 $ 351 ,601 $ 302,310 $ 320,540 Public safety 652,201 693,703 621 ,908 655,045 Highways 432,092 448,387 378,320 403,898 Sanitation and waste removal 21 ,590 39,178 39,847 42,475 Conservation of health 6,125 7,415 6,922 6,900 City band 1 ,259 1 ,600 1 ,381 1 ,600 Recreation 82,803 97,282 82,365 79,871 Municipal parks 267,677 264,099 257,787 260,571 Reserve for contingencies 34,580 37 ,300 Total expenditures $1 ,807,694 $1 ,937,845 $1 ,690,840 $1 ,808,200 Actual revenues exceed actual expenditures during 1972 by $194,120 increasing the - fund balance to $769,536 at December 31 , 1972. An unused reserve for contingencies and less than anticipated personal services expenditures in general government, public safety and highways were the main reasons for the increase in the fund balance. Shown on the balance sheets are amounts to be provided for land, building and equipment acquisition. Repayment is to be made in annual installments and financed by current tax levies . SPECIAL REVENUE FUNDS • Municipal State-Aid Fund - Gasoline tax collections apportioned to the City from the State of Minnesota for street construction are accounted for in this fund. Transfers are also made to this fund from special assessment debt service funds . Any excess of amounts assessed over construction costs have been restricted in this fund for payment of seal coating expenditures . At December 31 , 1972, $338,432 of the fund balance was available for future seal coating. Park Capital Fund - This fund accounts for the acquisition and improvement of parks in the City. Revenue has been provided by transfers from other funds along with Federal and State grants in aid. Accounts receivable of $137,744 from the Federal Government represent the balance due from grants are reflected on the balance sheet. Additional revenue of $25,967 will be required to finance construction costs incurred to date. Revenue Sharing Fund - The Revenue Sharing Fund was established to account for revenue received from the Federal Government in accordance with the "State and Local Fiscal Assistance Act of 1972." Expenditures can only be made from this Fund as outlined in the Act. The City's share of revenue for 1972 was $132,407, of which $67,633 was received in December, 1972 and $64,774 is to be received in 1973. No appropriations had been made as of December 31 , 1972. INVESTMENT FUND This fund was established to more effectively handle the accounting for investments (Th and interest earned thereon. All investments are carried in this account during the year and transferred to their respective funds at the year end. Consequently, at December 31 , 1972, this fund shows only interest earned but not yet received. 4 SPECIAL ASSESSMENT FUNDS Special assessment funds are established to account for special assessments levied . to finance improvements or services deemed to benefit the properties against which the assessments are levied. Primarily, the transactions accounted for in special assessment construction funds are receipt of bond proceeds and disbursement of bond proceeds for construction work done. Special assessment debt service funds account mainly for collection of assessments against benefited property owners and disburse- ment of assessment collections for the payment of bonds and interest. Several special assessment construction funds showed cash deficits as of December 31 , - 1972. These deficits mean, in effect, that monies belonging to other City funds have been used as a means of temporary financing until sufficient bonds are sold and special assessments receivable collected to pay current expenditures and eliminate the deficits. The debt service fund for Improvement Bonds of 1963 shows a deferred tax levy of $381 ,000 to pay costs of water and sewer system expansion not assessed against - benefited property. It is anticipated that the unassessed costs will be paid from earnings of the Water and Sewer Utilities Operating Fund and that annual collectible amounts of the levy will be canceled or reduced accordingly. The debt service fund for the Refunding Bonds of 1964 shows a deferred tax levy of $658,300. This tax levy was set up in the bond resolution for payment of the total bond issue; no consideration was given to the deferred special assessments - receivable. The collections by the City of deferred special assessments , as well as the transfers from the Sewer and Water Utilities Operating Fund, could be used to cancel or reduce the annual collectible amount of the deferred tax levy. - The balance sheets for the debt service funds show future interest on both special assessments receivable and related bonds payable. It should be noted that pro- spective interest receivable or payable becomes an actual asset or liability, respectively, strictly as a function of time. Prepayments of special assessments have the effect of reducing the amount of interest collectible. Conversely, redemption of bonds before maturity would reduce the amount of interest to be paid. Refunding bonds were sold by the City in 1964 for the advance payment of the re- maining bonds of three City bond issues . Proceeds were deposited with the escrow agent for payment when due. These issues in original amounts were: Improvement Bonds dated January 1 , 1959 $ 270,000 Improvement Bonds dated December 15, 1959 505,000 Improvement Bonds of 1961 , dated May 1 , 1961 1 ,250,000 $2,025,000 During 1972, the final payment was made on the refunded issues and the escrow account closed. The escrow account cash balance of $26,592 was paid to the City and deposited in the Refunding Bonds of 1964 Fund. 5 SPECIAL ASSESSMENT FUNDS (CONTINUED) Special Improvements Revolving Fund - The purpose of this fund is to provide temporary ' financing for small improvement projects . It has been used also to provide cash to special assessment debt service funds which have incurred cash deficits due to bond and interest maturities in advance of collection of corresponding special assessments -- receivable. Money for these purposes has been provided mainly from balances in old inactive construction and debt service funds , water and sewer connection assessments and improvement escrow deposits . GENERAL DEBT SERVICE FUNDS These funds are being used for the accumulation of monies for payment of general obligation bonds and interest thereon. General property taxes provide the necessary revenue. LIQUOR FUND (MUNICIPAL BUILDING REVENUE BOND FUND) This fund was established to account for the operations and financing of the City-owned liquor stores . Shown below is a condensed summary of liquor store operations for 1972, 1971 and 1970: 1972 1971 1970 Percent Percent Percent of sales of sales of sales Sales Off sale $1 ,069,472 100.0 $1 ,137,712 78.4 $1 ,169,734 76.2 — e"' On sale 312,647 21 .6 365,028 23.8 Total sales $1 ,069,47£ 00 0 $1 ,450,359 00 0 $1 ,534.762 00 0 Cost of sales 807,136 75.5 952,302 65.7 988,084 64.4 Gross profit $ 262,336 24.5 $ 498,057 34.3 $ 546,678 35.6 Operating expenses 188,057 17.6 370,031 25.5 343,122 22.4 Operating profit $ 74,279 6.9 $ 128,026 8.8 $ 203,556 13.2 Other income and expenses (net) 25,772 2.4 86,874 6.0 16,387 1 .1 Net income $ 100,051 9.3 $ 214,900 14.8 $ 219,943 14.3 Percent of Percent of Percent of net income net income net income Transfers to other City funds $ 136,500 136.4 $ 224,175 104.3 $ 216,000 98.2 The City sold both on-sale liquor stores in September 1971 for $252,000 resulting in a gain of $66,848. Accounts receivable of $171 ,124 from the sale of the stores is re- flected on the balance sheet at December 31 , 1972. • ^ 7 , WATER AND SEWER REVENUE BOND FUND This fund accounts for the operations and financing for City-owned sewer and water systems. In 1956 and 1970, revenue bonds in the amounts of $170,000 and $460,000, respectively, were issued of which $520,000 of these bonds were outstanding at .• December 31 , 1972 and payable in future years. Debt service accounts for these bond issues are being maintained in accordance with the provisions of the bond sales agreements . The agreements provide that net revenues of the water and sewer operations equal to the principal and interest maturities of the revenue bonds due in the following year be pledged as collateral . Shown below is a condensed summary of operations of the water and sewer operation account for 1972, 1971 and 1970. 1972 1971 1970 •. Water account Operating revenue $362,708 $364,261 $349,257 Operating expenses 332,606 268,791 238,442 Operating income $ 30,102 $ 95,470 $110,815 Sewer account Operating revenue $643,903 $359,205 $279,262 Operating expenses 473,615 434,299 176,868 Operating income (loss) $170,288 $(75,094) $102,394 The receivable from the Metropolitan Sewer Board represents the City's share of the equity in the North Suburban Sanitary Sewer District sewer system which was acquired by the Board on January 1 , 1971 . This receivable will be paid to the City by means of issuing credit against future sewer billings from the Board. These credits will be applied in equal annual installments , with interest, through 1999. Sewer operating expenses for 1972 include $352,557 in rental charges as compared with $317,060 in 1971 . The City follows the practice of not including as part of fixed assets in this fund the cost of the distribution system, which is paid for by assessment against benefited property or by deferred tax levies. Such fixed assets are carried as a part of General Fixed Assets. In 1969, the Fund assumed a $770,000 liability for bonds payable along with future interest obligations of the Water No. 75 Improvement Bonds . 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 on this bond issue and to provide the necessary revenues from the Water and Sewer Revenue Bond Fund. Included in interest expense of the Water and Sewer Fund is $23,715 representing the current ._ year's charges on this bond issue. The Water and Sewer Revenue Bond Fund has transferred monies to the special assessment debt service funds to pay principal and interest on some bond issues , although it is _ not required to do so. As a result, the City considers such transfers as direct charges against retained earnings and not against income. TRUST AND AGENCY FUNDS • Trust and agency funds are established to account for cash or other assets held by the City as a trustee or agent. The City funds of this nature include (1 ) Firemen 's Relief Association Fund , (2) Police Relief Association Fund and (3) Pension Fund. The first two funds account for collections of general property taxes and subsequent remittance of these collections to the respective association. The Pension Fund accounts for the accumulation of resources needed to finance the City's share of the pension contributions. - 8 — CITY OF FRIDLEY, MINNESOTA (-.,, BALANCE SHEETS - ALL FUNDS DECEMBER 31 , 1972 General and — Combined Special Total Revenue ASSETS — Cash $( 20,148) $ 9,531 Cash with fiscal agent 756,109 Investments , at cost plus accrued interest "` City of Fridley temporary bonds 540,000 U. S. Government obligation 5,068,893 1 ,235,000 Accounts receivable 1 ,272,647 277 ,966 — Due from other funds 193 ,280 193 ,280 , Taxes receivable 1 ,646,770 57 ,727 Special assessments receivable 6,082,384 12,359 Inventories , at cost 235,756 3,172 Fixed assets , at cost less accumulated depreciation 22,443 ,695 Amounts to be provided 2,760,967 441 ,664 — Total assets $40,980,353 $2,230,699 LIABILITIES, RESERVES AND FUND BALANCE Accounts and contracts payable $ 1 ,205,655 $ 562,118 — Due to other funds 193,280 193 ,280 Deposits payable 465,998 19,847 Bonded indebtedness - Future maturities Definitive bonds Principal 9,216,000 Interest 2,295,716 Certificates of indebtedness Principal 16,735 16,735 Interest 1 ,261 1 ,261 Temporary bonds (held by City of Fridley) Principal 540,000 Interest 113,400 Reserves 2,911 ,247 70,086 Unencumbered appropriation balances 59,468 PI Investment in general fixed assets 20,139,793 Retained earnings 2,157 ,326 Fund balance 1 ,664 ,474 1 ,367 ,372 r, Total liabilities , reserves and fund balance $40,980,353 $2,230,699 9 General Water and Trust Investment Special Debt Municipal Sewer and General Fund Assessment Service Liquor Utilities Agency Fixed Assets $(87,622) $( 9,328) $ 853 $ 10,774 $( 1 ,715) $57,359 678,286 27,667 50,156 540,000 2,884,893 69,000 67,000 813,000 87,622 25,719 171 ,124 710,216 1 ,039,866 541 ,312 7,865 6,070,025 -- 232,584 103,405 2,200,497 $20,139,793 2,319,303 $ -0- $13,548,764 $638,832 $584,887 $3,772,154 $65,224 $20,139,793 - $ 596,457 $ 5,612 $ 10,584 $30,884 204,302 241 ,849 7,546,000 $470,000 1 ,200,000 2,187,331 108,385 540,000 113,400 2,031 ,179 60,447 741 ,670 7,865 59,468 $20,139,793 579,275 1 ,578,051 270,627 26,475 $ -0- $13,548,764 $638,832 $584,887 $3,772,154 $65,224 $20,139,793 10 CITY OF FRIDLEY, MINNESOTA GENERAL AND SPECIAL REVENUE FUNDS BALANCE SHEETS - DECEMBER 31 , 1972 Municipal Park Revenue Combined General State-Aid Capital Sharing ASSETS Cash $ 9,531 $ 6,276 $ 53 $ 569 $ 2,633 Investments, at cost plus - accrued interest 1 ,235,000 875,000 266,000 29,000 65,000 Accounts receivable State of Minnesota 61 ,639 55,543 6,096 Other 216,327 13,809 137,744 64,774 Due from other funds 193,280 193,280 Taxes receivable IDnremitted 14,007 14,007 Delinquent 43,720 43,720 Delinquent special assessments receivable 12,359 12,359 Inventories , at cost 3,172 3,172 . Amount to be provided For equipment 83,996 83,996 For land and buildings 331 ,701 331 ,701 From General Fund for reimbursement of n-, construction costs 25,967 25,967 Total assets $2,230,699 $1 ,439,583 $465,429 $193,280 $132,407 LIABILITIES, RESERVES AND FUND BALANCE ^' Accounts payable $ 164,417 $ 164,417 Contracts payable 397,701 397,701 Due to other funds 193,280 $193,280 Deposits payable 19,847 19,847 Certificates of Indebtedness ., Principal 16,735 16,735 Interest 1 ,261 1 ,261 Reserve for uncollected taxes and special assessments 70,086 70,086 ^, Fund balance 1 ,367,372 -. 769,536 $465,429 $132,407 Total liabilities, reserves and fund balance $2,230,699 $1 ,439,583 $465,429 $193,280 $132,407 $7,178 of State Aid Fund Construction in progress will be found in General Fixed Assets. $306,343 of Park Capital Fund Construction in progress will be found in General Fixed Assets. 7 7 . 11 CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF REVENUE - ACTUAL COMPARED WITH BUDGET ESTIMATES YEAR ENDED DECEMBER 31 , 1972 Budget Actual estimates General property and other taxes Current ad valorem $ 907,587 $ 890,153 Delinquent ad valorem 65,516 12,000 Tax forfeit -- 3,000 - $ 973,103 $ 905,153 Licenses and permits Business regulatory licenses $ 30,311 $ 39,280 Nonbusiness licenses and permits 136,465 54,650 $ 166,776 $ 93,930 Fines and forfeitures - Municipal Court $ 25,680 $ 24,000 Revenue from use of money and property Interest earned $ 51 ,494 $ 25,000 Rents 7,757 8,600 $ 59,251 $ 33,600 "- Intergovernmental revenue Cigarette and liquor taxes $ 107,870 $ 105,530 Mobile home registration fee 2,336 5,490 Per capita apportionment 391 ,937 383,727 Gasoline tax 22,350 22,125 Mortgage registry 17,445 7,500 -. $ 541 ,938 $ 524,372 Charges for current services General Government $ 7,527 $ 7,565 Public Safety 5,973 3,900 Conservation of Health 12,450 19,500 Recreation 21 ,811 22,600 $ 47,761 53,565 Other revenue $ 30,805 $ 17,190 Transfers from other funds Municipal Liquor Operating Fund $ 136,500 $ 182,000 Municipal State-Aid Fund - Seal Coating 20,000 20,000 $ 156,500 $ 202,000 Prior years' fund balance $ 84,035 Total revenue $2,001 ,814 $1 ,937,845 12 CITY OF FRIDLEY, MINNESOTA GENERAL FUND r STATEMENT OF EXPENDITURES - ACTUAL COMPARED WITH BUDGET ESTIMATES YEAR ENDED DECEMBER 31 , 1972 Budget Actual estimates General Government "- Mayor and Council Personal services $ 18,923 $ 18,650 Contractual services 13,634 13,850 _ Commodities 935 875 Other charges 6,178 6,331 Capital outlay 233 200 $ 39,903 $ 39,906 ^" Manager Personal services $ 46,173 $ 51 ,478 "' Contractual services 6,480 6,000 Commodities 1 ,186 1 ,325 Other charges 1 ,957 1 ,125 Capital outlay 1 ,660 825 $ 57 ,456 $ 60,753 Elections and Voters' Registration Personal services $ 8,976 $ 9,327 Contractual services 1 ,030 880 n Commodities 1 ,098 1 ,300 Other charges 3,553 3,785 $ 14,657 $ 15,292 Finance Clerk-Treasurer Personal services $ 39,515 $ 38,732 Contractual services 7,885 7 ,375 Commodities 3,659 4,200 Other charges 8,706 8,910 Capital outlay 3,498 1 ,450 Refunds - 200 Assessor Personal services • 45,232 47,288 „ Contractual services 4,368 5,075 Commodities 347 925 Other charges 1 ,978 1 ,760 ,, Capital outlay 175 100 Independent auditing and accounting 4,625 5,500 $ 119,988 $ 121 ,515 Legal Personal services $ 27,146 $ 27,425 Contractual services 510 250 -, Commodities 104 120 Other charges 138 150 $ 27 ,898 $ 27,945 7 .. 13 CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF EXPENDITURES - ACTUAL COMPARED WITH BUDGET ESTIMATES (CONTINUED) .. YEAR ENDED DECEMBER 31 , 1972 Budget Actual estimates General Government (Continued) .. Administrative Offices . Planning Commission Personal services $ - $ 2,000 Industrial Development Commission Personal services - 150 Contractual services 262 1 ,710 Commodities 77 150 "' Civil Service Personal services - 100 Contractual services 42 410 - Human Relations Contractual services - 160 Commodities - 125 $ 381 $ 4,805 Planning and Zoning -, Personal services $ 21 ,139 $ 22,071 �,� Contractual services 3,944 1 ,150 ,,ate Commodities 1 ,056 1 ,000 Other charges 452 422 Capital outlay 511 100 $ 27,102 $ 24,743 General Government Buildings Personal services $ 15,180 $ 12,976 Contractual services 30,551 32,017 Commodities 1 ,800 1 ,412 Other charges 5,860 7,212 Capital outlay 3,171 3,025 $ 56,562 $ 56,642 Total General Government $ 343,947 $ 351 ,601 Public Safety Police Protection Personal services $ 336,114 $ 362,190 Contractual services 22,337 21 ,634 Commodities 15,602 18,100 Other charges 18,769 18,967 Capital outlay 14,403 15,550 "' $ 407,225 $ 436,441 .. • 14 CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF EXPENDITURES - ACTUAL COMPARED WITH BUDGET ESTIMATES (CONTINUED) /'1 YEAR ENDED DECEMBER 31 , 1972 Budget _ Actual estimates Public Safety (Continued) Fire Protection Personal services $ 99,882 $ 99,390 Contractual services 16,985 17,250 Commodities 5,840 6,750 Other charges 10,650 8,567 Capital outlay 22,771 25,006 Refunds 50 - $ 156,178 $ 156,963 Protective Inspection Personal services $ 46,214 $ 53,324 / Contractual services 12,758 13,100 tr Commodities 743 1 ,200 �� Other charges 1 ,968 2,400 Capital outlay 1 ,853 800 Refunds 106 150 $ 63,642 $ 70,974 Civil Defense Personal services $ 8,231 $ 9,130 Contractual services 819 1 ,314 n Commodities 118 250 Other charges 1 ,105 1 ,169 Capital outlay 10,919 10,067 $ 21 ,192 $ 21 ,930 .^ Animal Control Personal services $ - $ 2,120 -, Contractual services 3,900 5,000 Commodities 64 275 $ 3,964 $ 7,395 Total Public Safety $ 652,201 $ 693,703 Highways Engineering Personal services $ 53,557 $ 54,016 Contractual services 7,281 7 ,800 Commodities 2,186 2,500 Other charges 4,494 4,080 Capital outlay 3,262 $ 70,780 $ 68,396 Street and Alley $ 87 ,162 $ 116,279 Personal services 24,594 19,300 Contractual services Commodities 26,638 20,200 Other charges 31 ,315 31 ,075 Capital outlay 28,794 21 ,300 '„ $ 198,503 $ 208,154 15 CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF EXPENDITURES - ACTUAL COMPARED WITH BUDGET ESTIMATES (CONTINUED) YEAR ENDED DECEMBER 31 , 1972 Budget Actual estimates Highways (Continued) Snow and Ice Removal Personal services $ 15,843 $ 21 ,500 Contractual services 5,034 7,900 ., Commodities 5,192 5,700 Other charges 1 ,177 4,400 Capital outlay 10,885 6,000 ,_ $ 38,131 $ 45,500 Traffic Signs, Signals and Markings Personal services $ 5,924 $ 5,000 Contractual services 9,125 8,824 Commodities 9,806 6,826 Other charges 104 200 _. Capital outlay 21 ,030 23,850 $ 45,989 $ 44,700 Equipment Maintenance Personal services $ 6,187 $ 5,000 Contractual services 6,370 5,850 Commodities 2,736 3,500 Other charges 1 ,776 1 ,435 Capital outlay 22,516 25,552 $ 39,585 $ 41 ,337 Street Lighting - Contractual services $ 39,104 $ 40,300 Total Highways $ 432,092 $ 448,387 Sanitation and Waste Removal Storm Sewers Personal services $ 5,459 $ 5,600 Contractual services 2,313 6,628 Commodities 2,365 1 ,400 .. Other charges 94 900 $ 10,231 $ 14,528 Pest Control - Contractual services $ - $ 200 Weed Eradication Personal services $ 3,934 $ 4,400 t: �'' Contractual services 7,409 19,775 V4 Commodities 11 200 Other charges 5 75 $ 11,359 $ 24,450 Total Sanitation and Waste Removal $ 21 ,590 $ 39,178 16 CITY OF FRIDLEY,. MINNESOTA GENERAL FUND - STATEMENT OF EXPENDITURES - ACTUAL COMPARED WITH BUDGET ESTIMATES (CONTINUED) YEAR ENDED DECEMBER 31 , 1972 Budget Actual estimates Conservation of Health '- Personal services $ 5,986 $ 5,750 Contractual services 34 1 ,520 Commodities 18 80 - Other charges 87 65 Total Conservation of Health $ 6,125 $ 7,415 City Band Personal services $ 950 $ 950 Commodities 193 549 Other charges 15 - '" Capital outlay 101 101 Total City Band $ 1 ,259 $ 1 ,600 Recreation Personal services $ 62,459 $ 70,469 Contractual services 3,265 4,000 - Commodities and capital outlay 16,790 22,333 Other charges 216 480 Refunds 73 - Total Recreation $ 82,803 97,282 Municipal Parks Personal services $ 118,997 $ 113,434 Contractual services 31 ,515 29,649 Commodities 18,968 18,585 Other charges 12,618 10,865 Capital outlay 85,579 91 ,566 Total Municipal Parks $ 267 ,677 $ 264,099 Reserve for contingencies $ - $ 34,580 .. Total expenditures $1 ,807,694 $1 ,937 ,845 p. Fund balance January 1 , 1972 $ 575,878 $ 491 ,843 Revenue over (under) expenditures 194,120 -0- Adjustment of prior year's accounts payable & receivable ( 462) Fund balance December 31 , 1972 $ 769,536 $ 491 ,843 1 r, i • I L •. 17 CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUNDS STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS YEAR ENDED DECEMBER 31 , 1972 Municipal Park Revenue Combined State-Aid Capital Sharing ., Cash balance, January 1 , 1972 $ (7,151 ) $ 3,530 $(10,681 ) $ -0- Receipts • State-aid construction apportionment $158,326 $158,326 Federal Revenue Sharing 67,633 $67,633 Interest on investments 22,638 21 ,929 $ 709 Investments matured (at cost) 370,000 370,000 - Transfers from other funds 1971 Street Construction Fund 47,719 47,719 General Fund 8,382 8,382 State-aid 113,280 113,280 Matching Funds, State of Minnesota 30,500 30,500 Total receipts $818,478 $597,974 $152,871 $67,633 Disbursements Purchase of investments $360,000 $266,000 $ 29,000 $65,000 Interest expense 2,813 2,813 Land purchase 109,808 109,808 Transfers to other funds General Fund 20,000 20,000 1971 Street Construction Fund 43,844 43,844 1972 Street Construction Fund 158,327 158,327 Park Capital Fund ( Temporary transfer) 113,280 113,280 Total disbursements $808,072 $601 ,451 $141 ,621 $65,000 Cash balance, December 31 , 1972 $ 3,255 $ 53 $ 569 $ 2,633 ..r 19 CITY OF FRIDLEY, MINNESOTA INVESTMENT FUND BALANCE SHEET DECEMBER 31 , 1972 Imet ASSETS Cash (deficit) $ (87,622) Accrued interest receivable 87,622 Total assets $ -0- STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS YEAR ENDED DECEMBER 31 , 1972 ._ Cash balance, January 1 , 1972 $ (78,903) Receipts Investments Matured $2,663,032 Accrued Interest Received 140,294 Interest Earned - Current Period 133,403 Transfers in From Other Funds (Investment Principal ) 5,608,893 Total receipts $8,545,622 Disbursements Investments Purchased $4,778,070 Distributed to Other Funds (Investment Principal ) 3,493,855 Interest distributed to other City funds General 46,983 Special Revenue 21 ,929 Special Assessment 148,394 General Debt Service 878 Municipal Liquor 7,183 Water and Sewer Utilities 56,187 Trust & Agency 862 Total disbursements $8,554,341 Cash balance, December 31 , 1972 $ (87,622) 20 - CITY OF FRIDLEY, MINNESOTA SPECIAL ASSESSMENT FUNDS BALANCE SHEETS DECEMBER 31 , 1972 Special Special Special -- Assessment Assessment Improvements Combined Construction Debt Service Revolving ASSETS Cash (deficit) $( 9,328) $( 88,957) $ 77,984 $ 1 ,645 Cash with fiscal agents 678,286 678,286 Investments, at cost plus accrued interest .. City of Fridley temporary bonds 540,000 540,000 Other 2,884,893 384,000 2,210,893 290,000 Accounts receivable 25,719 25,719 Taxes receivable - Delinquent 566 566 Deferred 1 ,039,300 1 ,039,300 Special assessments receivable - Delinquent 745,770 727,909 17,861 Deferred Principal 3,846,173 3,680,750 165,423 n Interest 1 ,478,082 1 ,478,082 Amounts to be provided for Construction 335,163 335,163 Debt retirement 1 ,984,140 _ 1 ,984,140 - Total assets $13,548,764 $ 655,925 $12,417,910 $ 474,929 LIABILITIES, RESERVES, APPROPRIATIONS AND FUND BALANCE �. Accounts and contracts payable $ 596,457 $ 596,457 Deposits payable 204,302 $ 204,302 Bonded indebtedness - Future maturities '^ Definitive bonds Principal 7,546,000 $ 7,546,000 Interest 2,187,331 2,187,331 -, Temporary bonds (held by City of Fridley) Principal 540,000 540,000 Interest 113,400 113,400 Reserves for debt retirement 2,031 ,179 2,031 ,179 Unencumbered appropriation balances 59,468 59,468 Fund balance 270,627 270,627 rN Total liabilities, reserves appropriations and fund balance $13,548,764 $ 655,925 $12,417,910 $ 474,929 . 1 E9^" 21 CITY OF FRIDLEY , MINNESOTA SPECIAL ASSESSMENT FUNDS STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS YEAR ENDED DECEMBER 31 , 1972 Special Special Special Assessment Assessment Improvements Combined Construction Debt Service Revolving Cash balance, January 1 , 1972 $( 19,885) $ 55,255 $( 76,178) $ 1 ,038 'Receipts Proceeds from sale of temporary bonds $ 3,094,300 $ 985,000 $2,109,300 Special assessments 1 ,223,690 1 ,159,031 $ 64,659 General property taxes 240 240 Penalty and interest on -- special assessments 30,153 29,753 400 Interest on investments 269,812 37,354 216,919 15,539 Investments sold 3,478,855 712,000 2,686,855 80,000 Other governmental units 260,062 260,062 Escrow deposits 212,660 212,660 Transfers from other funds 2,272,761 328,102 1 ,944,659 f.Th Total receipts $10,842,533 $2,322,518 $8,146,757 $373,258 Disbursements Capital- outlay Transfers to other funds - Interest during construction $ 28,785 $ 28,785 Other 1 ,382,364 1 ,382,364 $ 1 ,411 ,149 $1 ,411 ,149 Retirement of bonds Principal 2,729,000 $2,729,000 Interest 458,529 458,529 Investments purchased 3,424,893 384,000 2,750,893 $290,000 Transfers to other funds 2,773,401 671 ,581 2,041 ,021 60,799 Refund of escrow deposits 21 ,826 21 ,826 Other disbursements 13,178 13 ,152 26 Total disbursements $10,831 ,976 $2,466,730 $7,992,595 $372,651 Cash balance, December 31 , 1972 $( 9,328) $( 88,957) $ 77,984 $ 1 ,645 • i 22 — CITY OF FRIDLEY, MINNESOTA n SPECIAL ASSESSMENT CONSTRUCTION FUNDS —' BALANCE SHEETS DECEMBER 31 , 1972 ASSETS — Accounts receivable - Cash Investments Other Sewer and Water No. 50 $ 9,624 Storm Sewer No. 82 `13,797 Sewer and Water No. 93 9,408 Storm Sewer No. 100 663 Storm Sewer No. 101 ( 2,748) — Sewer and Water No. 102 (132,768) Storm Sewer and Sewer and Water No. 103 838 $ 37,000 Locke Lake Dam No. 104 3,178 �1_ Storm Sewer and Sewer and Water No. 105 9,177 Sewer and Water No. 106 6,399 Storm Sewer and Sewer and Water No. 107 ( 8,160) 1970 Street 9,398 — 1971 Street $ 25,719 1972 Street 68 347,000 1973 Street ( 7,831 ) — Combined $( 88,957) $384,000 $ 25,719 Construction in progress in the amount of $1 ,286,591 will be found in General Fixed — Assets. 23 LIABILITIES AND APPROPRIATIONS Amount Accounts Total to be and Unencumbered liabilities provided for Total contracts appropriation and construction assets payable balance appropriations $ 9,624 $ 7,408 $ 2,216 $ 9,624 13,797 11 ,000 2,797 13,797 $ 4,566 13,974 13,974 13,974 818 1 ,481 1 ,481 1 ,481 2,748 280,867 148,099 148,099 148,099 14,128 51 ,966 51 ,966 51 ,966 _^ 80 3,258 3,258 3,258 9,177 6,309 2,868 9,177 15,965 22,364 22,364 22,364 8,160 9,398 9,398 9,398 25,719 10,270 15,449 25,719 347,068 310,930 36,138 347,068 7,831 $ 335,163 $ 655,925 $596,457 $ 59,468 $ 655,925 24 '" CITY OF FRIDLEY, MINNESOTA — n SPECIAL ASSESSMENT DEBT SERVICE FUNDS BALANCE SHEETS — DECEMBER 31 , 1972 Regular Special • Combined Assessment — ASSETS Cash (deficit) $ 77,984 $ 1 ,119 Cash with fiscal agents 678,286 Investments, at cost plus accrued interest City of Fridley temporary bonds 540,000 160,000 Other 2,210,893 1 ,010,000 Taxes receivable Delinquent 566 Deferred 1 ,039,300 Special assessments receivable Delinquent 727,909 78,854 — Deferred Principal 3,680,750 170,660 Interest 1 ,478,082 18,719 Amount to be provided for debt retirement 1 ,984,140 Total assets $12,417,910 $1 ,439,352 LIABILITIES AND RESERVE — Bonded indebtedness - Future maturities Definitive bonds Principal $ 7,546,000 $ 531 ,000 — Interest 2,187,331 42,720 Temporary bonds (held by City of Fridley) Principal 540,000 — Interest 113,400 Reserve for debt retirement 2,031 ,179 865,632 Total liabilities and reserve $12,417,910 $1 ,439,352 .. 25 Improve- Improve- Improve- Refund- Sewer Storm ment ment ment ing .. and Water Sewer 1972 Bonds of Bonds of Bonds of Bonds of No. 48 No. 106 Street 1960 1962 1963 1964 $(94,145) $ 8,233 $ 3,778 $ 591 $ 111 $ 156,455 112,595 96,338 60,787 380,000 83,000 230,000 52,893 566 381 ,000 658,300 70,821 84,266 16,375 55,038 86,254 124,173 116,655 326,962 32,647 28,809 168,240 41 ,169 95,330 107,813 9,786 5,462 42,455 $520,300 $254,613 $220,218 $520,300 $999,157 $142,399 $761 ,207 $1 ,165,163 $110,000 $775,000 $ 70,000 $415,000 $ 775,000 2,255 160,603 12,145 78,277 97,192 $110,000 $430,000 23,100 90,300 142,358 87,118 63,554 60,254 267,930 292,971 $254,613 $220,218 $520,300 $999,157 $142,399 $761 ,207 $1 ,165,163 26 — CITY OF FRIDLEY, MINNESOTA SPECIAL ASSESSMENT DEBT SERVICE FUNDS BALANCE SHEETS CONTINUED — DECEMBER 31 , 1972 Improve- Improve- _ ment ment Bonds of Bonds of 1965 1967 ASSETS _ Cash (deficit) $ 549 $ 448 Cash with fiscal agents 175,689 Investments, at cost plus accrued interest — City of Fridley temporary bonds Other 233,000 314,000 Taxes receivable Delinquent Deferred Special Assessments receivable Delinquent 99,006 113,820 — Deferred Principal 183,749 747,508 Interest 69,021 238,207 n._ Amount to be provided for debt retirement Total assets $585,325 $1 ,589,672 LIABILITIES AND RESERVE "' Bonded indebtedness - Future maturities Definitive bonds Principal $385,000 $1 ,190,000 Interest 87 ,140 261 ,495 Temporary bonds (held by City of Fridley) Principal Interest Reserve for debt retirement 113,185 138,177 Total liabilities and reserve $585,325 $1 ,589,672 27 Improve- Improve- ment ment Bonds of Bonds of 1970 1972 $ 512 $ 333 133,783 99,094 114,000 174,000 77,056 46,419 911 ,886 869,461 476,720 373,400 2,553 1 ,461 ,287 $1 ,716,510 $3,023,994 $1 ,160,000 $2,135,000 556,510 888,994 $1 ,716,510 $3,023,994 28 CITY OF FRIDLEY, MINNESOTA GENERAL DEBT SERVICE FUNDS BALANCE SHEETS - DECEMBER 31 , 1972 Civic Park Bonds Center of 1962 Bonds - Combined and 1963 of 1965 ASSETS Cash $ 853 $ 412 $ 441 Cash with fiscal agent 27,667 27,667 Investments at cost plus accrued interest 69,000 39,000 30,000 - Taxes receivable Delinquent 4,712 2,557 2,155 Deferred 536,600 27,200 509,400 Total assets $638,832 $ 96,836 $541 ,996 LIABILITY AND RESERVE Liability - Bonded indebtedness Future maturities Bonds $470,000 $ 65,000 $405,000 Interest 108,385 2,002 106,383 n Reserve for Debt Retirement 60,447 29,834 _ 30,613 Total liability and reserve $638,832 $ 96,836 $541 ,996 _. STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS YEAR ENDED DECEMBER 31 , 1972 Cash balance, January 1 , 1972 $ 28,816 $ 1 ,353 $ 27,463 Receipts Property taxes $ 81 ,683 $ 45,321 $ 36,362 Interest on investments 2,982 2,261 721 Investment maturities , at cost 40,000 40,000 Total receipts $124,665 $ 87,582 $ 37 ,083 Disbursements Investment purchases $ 69,000 $ 39,000 $ 30,000 Bonds 60,000 40,000 20,000 Interest 23,520 9,475 14,045 -- Fiscal agent service charge 108 48 60 Total disbursements $152,628 $ 88,523 $ 64,105 Cash balance, December 31 , 1972 $ 853 $ 412 $ 441 29 CITY OF FRIDLEY, MINNESOTA LIQUOR FUND -• BALANCE SHEET DECEMBER 31 , 1972 ASSETS Current assets Cash $ 10,774 Investments, at cost plus accrued interest 67,000 Inventories, at cost 232,584 Contract for deed receivable 9,253 Total current assets $319,611 Property, plant and equipment, substantially all at cost Land and improvements $ 64,076 Furniture, fixtures and equipment 70,639 Truck 3,084 Construction in progress 7,747 $145,546 Less accumulated depreciation 42,141 Net property, plant and equipment $103,405 /Th Contract for deed receivable, less current portion above $161 ,871 Total assets $584,887 LIABILITY AND RETAILED EARNINGS Current liability Accounts payable $ 5,612 Retained earnings $579,275 Total liability and retained earnings $584,887 30 CITY OF FRIDLEY, MINNESOTA n LIQUOR FUND STATEMENT OF INCOME — YEAR ENDED DECEMBER 31 , 1972 Off-Sale Stores Total No. 1 No. 2 Sales $1 ,069,472 • $128,207 $240,508 — Cost of sales 807,136 97,296 181 ,762 Gross profit $ 262,336 $ 30,911 $ 58,746 Percent of sales 24.5 24.1 24.4 Operating expenses $ 188,057 $ 38,328 $ 50,935 Percent of sales 17.6 29.9 21 .2 Operating profit (loss) $ 74,279 $ (7 ,417) $ 7 ,811 Percent of sales 6.9 (5.8) 3.2 Other income $ 25,772 $ 403 $ 8,185 — Percent of sales 2.4 .3 3.4 Net income $ 100,051 $ (7,014) $ 15,996 (Th., Percent of sales 9.3 (5.5) 6.6 ANALYSIS OF CHANGES IN RETAINED EARNINGS -- YEAR ENDED DECEMBER 31 , 1972 Retained earnings January 1 , 1972 $615,724 — Net income 100,051 Transfer to General Fund (136,500) Retained earnings December 31 , 1972 $579,275 7 7 31 No. 3 No. 4 $243,979 $456,778 189,733 338,345 $ 54 ,246 $118,433 22.2 25.9 $ 42,267 $ 56,527 17.3 12.4 $ 11 ,979 $ 61 ,906 4.9 13.5 $ 11 ,204 $ 5,980 4.6 1 .3 $ 23,183 $ 67 ,886 9.5 14.8 33 CITY OF FRIDLEY, MINNESOTA LIQUOR FUND STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED DECEMBER 31 , 1972 Fund Provided Operations Net income $100,051 Depreciation 6,956 $107,007 Decrease in contracts receivable 9,353 $116,360 Funds Applied Additions to property, plant and equipment $ 74,826 Transfers to other City funds 136,500 -- $211 ,326 Decrease in working capital $(94,966) Changes in elements of working capital Increase (decrease) in current assets Cash $ 533 Contract for deed 766 Investments (98,000) Prepaid expense (914) Inventories (7,230) (Increase) decrease in current liabilities Accounts payable 9,879 Decrease in working capital $(94,966) 34 CITY OF FRIDLEY, MINNESOTA LIQUOR FUND STATEMENT OF OPERATING EXPENSES - Off-Sale Stores Percent Percent Percent Total of sales No. 1 of sales No. 2 of sales Salaries and wages $104,229 9.7 $ 20,470 15.9 $ 29,020 12.0 Employee benefits 8,671 .8 2,113 1 .6 1 ,838 .8 - Supplies 3,846 .4 593 .5 925 .4 Laundry and cleaning 2,462 .2 577 .5 649 .3 Rent 23,113 2.2 4,295 3.3 6,231 2.6 - Utilities 10,841 1 .0 2,595 2.0 3,014 1 .3 Repairs and maintenance 3,542 .3 475 .4 1 ,649 .7 Insurance 16,799 1 .6 3,871 3.0 3,968 1 .6 Depreciation 6,956 .7 2,055 1 .6 2,186 .9 Mileage and automobile expense 866 .1 218 .2 210 .1 Professional fees 1 ,338 .1 323 .3 323 .1 - Alarm service 1 ,858 .2 520 .4 674 .3 Cash (over) short 7 (4) Miscellaneous 3,536 .3 216 .2 252 .1 /" ..- $188,057 17.6 $ 38,328 29.9 $ 50,935 21 .2 - 35 Percent Percent No. 3 of sales No. 4 of sales $ 24,594 10.1 $ 30,145 6.5 1 ,971 .8 2,749 .5 1 ,008 .4 1 ,320 .3 510 .2 726 .2 5,406 2.2 7,181 1 .6 2,090 .9 3,142 .7 692 .3 726 .2 4,473 1 .8 4,487 1 .0 548 .2 2,167 .5 218 .1 220 .1 323 .1 369 .1 92 572 .1 (18) 15 360 .2 2,708 .6 $ 42,267 17.3 $ 56,527 12.4 • CITY OF FRIDLEY, MINNESOTA 36 WATER AND SEWER REVENUE BOND FUND BALANCE SHEET DECEMBER 31 , 1972 — ASSETS Current Assets Cash $ (29,846) Investments , at cost 575,000 Accounts receivable 268,419 -- Total current assets $ 813 ,573 Restricted assets - Revenue Bond Accounts Sinking Account Cash $ 24,951 Cash with fiscal agent 50,156 Investments, at cost 213,000 $ 288,107 Reserve Account Cash $ 1 ,313 Investment, at cost 25,000 26,313 -- Construction Account Cash $ 1 ,867 1 ,867 Accounts receivable Metropolitan Sewer Board 441 ,797 ., Total restricted assets $ 758,084 Property, plant and equipment, substantially all at cost Land and improvements $ 149,076 Buildings 737 ,067 Meters 229,766 Machinery and equipment 1 ,776,387 r-' -- $2,892,296 Less accumulated depreciation 691 ,799 Net property, plant and equipment $2,200,497 Total assets $3,772,154 LIABILITIES , RESERVES AND RETAINED EARNINGS -- Current liabilities Accounts payable - Other $ 8,717 ., Bonds payable within one year 70,000 Total current liabilities $ 78,717 Other liabilities Accounts payable from restricted assets (Construction Account) $ 1 ,867 Bonds payable less portion due within one year 1 ,130,000 Meter deposits payable 241 ,849 Total other liabilities $1 ,373,716 Reserves Metropolitan Sewer Board current value credit $ 441 ,797 Reserve for Sinking Account debt service 273,560 Reserve for Reserve Account 26,313 Total reserves $ 741 ,670 Retained earnings $1 ,578,051 Total liabilities , reserves and retained earnings $3,772,154 n 37 CITY OF FRIDLEY, MINNESOTA WATER AND SEWER UTILITIES REVENUE BOND FUND OPERATION AND MAINTENANCE ACCOUNT STATEMENT OF INCOME YEAR ENDED DECEMBER 31 ,1972 Combined Water Sewer Operating revenue Water Sales and sewer rents $ 993,472 $356,638 $636,834 Connection permits 7,800 2,590 5,210 Sales of materials and miscellaneous services 5,339 3 ,480 1 ,859 Total operating revenue $1 ,006,611 $362,708 $643,903 Operating expenses Source of supply $ 376,495 $ 23,938 $352,557 Power and pumping 35,909 35,909 Purification 38,230 38,230 Transmission and distribution 173,728 82,617 91 ,111 Customer accounting and collecting 37,290 22,357 14,933 Administrative and general 24,448 11 ,972 12,476 Depreciation 120,121 117,583 2,538 Total operating expenses $ 806,221 $332,606 $473,615 fTh Operating income (loss) $ 200,390 $ 30,102 $170,288 Other income and (expense) Adjustment of 1971 disposal charges 19,622 Interest income 39,475 Connection charges 7,599 Interest expense (57,465) Net income $ 209,621 ANALYSIS OF CHANGES IN RETAINED EARNINGS YEAR ENDED DECEMBER 31 , 1972 Retained earnings January 1 , 1972, before adjustments $1 ,369,416 Net income 209,621 Transferred from Construction Account 41 ,430 .. Transfers to other funds (42,416) Retained earnings December 31 , 1972 $1 ,578,051 38 • CITY OF FRIDLEY, MINNESOTA WATER AND SEWER REVENUE BOND FUND STATEMENTS OF CHANGES IN FINANCIAL POSITION _- YEAR ENDED DECEMBER 31 , 1972 Working capital provided from Net income $ 209,621 Add expenses not requiring working capital - Depreciation 120,121 Working capital provided from operations $ 329,742 .- Transfers from other funds 41 ,430 Increase in reserves 638,085 Total working capital provided $1 ,009,257 Working capital used for Reduction of long-term debt $ 580,948 Additions to property, plant and equipment 49,143 -- Increase in restricted assets 180,682 Transfers to other funds 42,416 Total working capital used $ 853,189 -, Increase in working capital $ 156,068 Changes in elements of working capital n Increase (decrease) in current assets Cash $ (33,061 ) Accounts receivable 70,768 — Investments (5,000) (Increase) decrease in current liabilities Accounts payable 183,361 Current portion of long-term payable (60,000) Increase (decrease) in working capital $ 156,068 r, 39 CITY OF FRIDLEY, MINNESOTA WATER AND SEWER REVENUE BOND FUND STATEMENT OF CHANGES IN ASSETS RESTRICTED FOR REVENUE BOND DEBT SERVICE YEAR ENDED DECEMBER 31 , 1972 • Sinking Reserve Construction Combined Account Account Account Cash balance, January 1 , 1972 $ 30,965 $ 24,004 $ 4,478 $ 2,483 Receipts Interest on investments $ 16,711 $ 14,876 $ 1 ,835 Transfer from Water and Sewer Operating Fund 163,446 131 ,579 $ 31 ,867 Investments sold 270,000 210,000 20,000 40,000 Total receipts $450,157 $356,455 $ 21 ,835 $ 71 ,867 Disbursements Bonds $ 85,000 $ 85,000 Interest 57,240 57,240 Fiscal agents service charge 268 268 Construction costs 31 ,053 $ 31 ,053 Transfer to Water and Sewer Operating Fund 41 ,430 41 ,430 Investments purchased 2_,___38000 213 ,000 $ 25,000 Total disbursements $452,991 $355,508 $ 25,000 $ 72,483 .. Cash balance, December 31 , 1972 $ 28,131 $ 24,951 $ 1 ,313 $ 1 ,867 Investment balance, January 1 , 1972 $270,000 $210,000 $ 20,000 $ 40,000 Additions 238,000 213,000 25,000 Deductions (270,000) (210,000) (20,000) (40,000) Investment balance, December 31 , 1972 $238,000 $213,000 $ 25,000 $ -O- .. 40 CITY OF FRIDLEY, MINNESOTA TRUST AND AGENCY FUNDS BALANCE SHEETS - DECEMBER 31 , 1972 Firemen's Police - Relief Relief P,E.R.A. Association Association Pension Combined Fund Fund Fund .. ASSETS Cash $ 57,359 $ 7,273 $ 23,611 $ 26,475 Taxes receivable Unremitted 1 ,946 301 809 836 Delinquent . 5,919 1 ,141 1 ,980 2,798 Total assets $ 65,224 $ 8,715 $ 26,400 $ 30,109 RESERVE AND FUND BALANCE Accounts payable $ 30,884 $ 7,273 $ 23,611 Reserve for uncollected taxes 7,865 1 ,442 2,789 $ 3,634 ^' Fund Balance 26,475 26,475 Total reserve and fund balance $ 65,224 $ 8,715 $ 26,400 $ 30,109 STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS YEAR ENDED DECEMBER 31 , 1972 Cash balance January 1 , 1972 $ 16,466 $ 16,466 Receipts General property taxes $140,761 $ 19,041 $ 59,892 $ 61 ,828 Insurance premium tax 44,756 22,992 21 ,764 ,. Interest earned 862 862 Total receipts Ti86779 $ 42,033 $ 81 ,656 $ 62,690 Disbursements Police Relief Association $ 58,045 $ 58,045 Firemen's Relief Association 34,760 $ 34,760 Pension Contribution 52,681 $ 52,681 Total disbursements $145,486 $ 34,760 $ 58,045 $ 52,681 Cash balance December 31 , 1972 $ 57,359 $ 7,273 $ 23,611 $ 26,475 • 41 CITY OF FRIDLEY, MINNESOTA STATEMENT OF GENERAL FIXED ASSETS DECEMBER 31 , 1972 General fixed assets Land $ 593,649 Building and structures 783,742 Improvements other than buildings 16,406,503 Furniture, fixtures and office equipment 155,635 Machinery and equipment 590,489 Construction in progress 1 ,609,775 Total general fixed assets $20,139,793 Investment in general fixed assets Special assessments $17,167,520 '"� State-aid 198,019 General fund 1 ,594,886 Municipal liquor dispensary 38,570 Contributions 283,715 General obligation bonds 856,597 Water and sewer utilities 486 Total investment in general fixed assets $20,139,793 General fixed assets were shown at cost except that fixed assets for which cost information was not available were priced at appraised values. -- 43 - CITY OF FRIDLEY, MINNESOTA e STATEMENT OF CASH AND SECURITY FOR DEPOSITS DECEMBER 31 , 1972 Face amount • of securities Cash and pledged as deposits collateral Checking accounts - Fridley State Bank, Fridley, Minnesota General account $(32,648) $225,000* Petty cash and change funds 12,500 Total cash $(20,148) *Additional security of $20,000 is provided by the Federal Deposit Insurance Corporation. SUMMARY STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS ALL FUNDS YEAR ENDED DECEMBER 31 , 1972 /Th Cash Cash balance balance January 1 , December 31 , Fund 1972 Receipts Disbursements 1972 General Fund $ 4,799 $ 4,723,942 $ 4,722,465 $ 6,276 Special revenue funds (7,151 ) 818,478 808,072 3,255 Investment Fund (78,903) 8,545,622 8,554,341 (87,622) Special assessment funds (19,885) 10,842,533 10,831 ,976 (9,328) General debt service funds 28,816 124,665 152,628 853 Liquor Fund 10,241 1 ,716,549 1 ,716,016 10,774 Water and Sewer Revenue Bond Fund 34,180 2,131 ,389 2,167,284 (1 ,715) Trust and agency funds 16,466 186,379 145,486 57,359 Total $( 11 ,437) $29,089,557 $29,098,268 $( 20,148) a ^ 44 — CITY OF FRIDLEY , MINNESOTA — BONDS PAYABLE - ALL FUNDS DECEMBER 31 , 1972 Issue Interest Maturity Principal date rate date amount Special Assessment Debt Service — Funds - Definitive Bonds Regular Sewer Improvement Bonds May 1 , 1973 5/1/54 3.00% 5/1/73 $ 4,000 May 1 , 1974 3.00 5/1/74 2,000 Water and Sewer Improvement Bonds of 1954 $20,000 per year 8/1/54 4.00 8/1/73-74 40,000 — Water and Sewer Improvement Bonds of 1954 (Series B) _ $20,000 per year 8/1/54 4.00 2/1/73-74 40,000 Water and Sewer Improvement Bonds n$20,000 per year 11/1/54 4.00 2/1/73-74 40,000 Water and Sewer Improvement _ Bonds $20,000 per year 5/1/55 3.60 2/1/73-75 60,000 $20,000 per year 3.60 8/1/73-75 60,000 General Obligation Improvement Bonds $20,000 per year 10/1/55 3.60 2/1/73-75 60,000 $20,000 per year 3.60 8/1/73-75 60,000 Improvement Bonds _, $30,000 per year 8/1/56 4.75 8/1/73-74 60,000 August 1 , 1975 4.75 8/1/75 50,000 August 1 , 1976 4.75 8/1/76 55,000 Total Regular Special Assessment Debt Service Funds $ 531 ,000 Sewer and Water No. 48 January 1 , 1973 10/1/61 4.10 1/1/73 $ 110,000 Total Sewer and Water No. 48 Special Assessment Debt ., Service Fund $ 110,000 -t 45 CITY OF FRIDLEY, MINNESOTA BONDS PAYABLE - ALL FUNDS (CONTINUED) DECEMBER 31 , 1972 ,_ Issue Interest Maturity Principal date rate date amount Special Assessment Debt Service Funds - Definitive Bonds (Continued) Improvement Bonds of 1960 -- January 1 , 1973 10/1/60 4.10% 1/1/73 $ 80,000 January 1 , 1974 4.10 1/1/74 75,000 $80,000 per year 4.20 1/1/75-78 320,000 .. January 1 , 1979 4.20 1/1/79 75,000 January 1 , 1980 4.20 1/1/80 80,000 January 1 , 1981 4.20 1/1/81 70,000 January 1 , 1982 4.20 1/1/82 75,000 Total Improvement Bonds of 1960 Special Assessment Debt Service Fund $ 775,000 Improvement Bonds of 1962 February 1 , 1973 5/1/62 3.50 2/1/73 $ 10,000 /Th February 1 , 1974 3.50 2/1/74 5,000 February 1 , 1975 3.80 2/1/75 10,000 February 1 , 1976 3.80 2/1/76 5,000 February 1 , 1977 3.80 2/1/77 10,000 February 1 , 1978 3.80 2/1/78 5,000 February 1 , 1979 3.80 2/1/79 10,000 $5,000 per year 3.80 2/1/80-82 15,000 Total Improvement Bonds of 1962 Special Assessment Debt Service Fund $ 70,000 Improvement Bonds of 1963 January 1 , 1973 1/1/63 3.50 1/1/73 $ 60,000 January 1 , 1974 3.50 1/1/74 50,000 January 1 , 1975 3.70 1/1/75 45,000 $30,000 per year 3.70 1/1/76-77 60,000 $30,000 per year 3.80 1/1/78-79 60,000 ._ $35,000 per year 3.80 1/1/80-83 140,000 Total Improvement Bonds of 1963 Special Assessment Debt Service Fund $ 415,000 Refunding Bonds of 1964 $105,000 per year 2/1/64 3.30 2/1/73-75 $ 315,000 $105,000 per year 3.40 2/1/76-79 420,000 �"1 February 1 , 1980 3.40 2/1/80 40,000 .. Total Refunding Bonds of 1964 Special Assessment Debt Service Fund $ 775,000 46 - CITY OF FRIDLEY, MINNESOTA - BONDS PAYABLE - ALL FUNDS (CONTINUED) r"1 DECEMBER 31 , 1972 Issue Interest Maturity Principal date rate date amount Special Assessment Debt Service Funds - Definitive Bonds (Continued) - Improvement Bonds of 1965 $30,000 per year 5/1/65 3.20% 2/1/73-75 $ 90,000 -- $30,000 per year 3.30 2/1/76-78 90,000 $30,000 per year 3.40 2/1/79-80 60,000 February 1 , 1981 3.40 2/1/81 25,000 $25,000 per year 3.50 2/1/82-85 100,000 February 1 , 1986 3.50 2/1/86 20,000 Total Improvement Bonds of 1965 Special Assessment Debt -- Service Fund $ 385,000 Improvement Bonds of 1967 _ $150,000 per year 10/1/67 4.20 1/1/73-75 $ 450,000 $140,000 per year 4.20 1/1/76-77 280,000 $130,000 per year 4.40 1/1/78 130,000 - $ 40,000 per year 4.40 1/1/79-82 160,000 $ 30,000 per year 4.50 1/1/83-87 150,000 January 1 , 1988 4.50 1/1/88 20,000 Total Improvement Bonds of 1967 Special Assessment Debt Service Fund $1 ,190,000 --Improvement Bonds of 1970 $95,000 per year 7/1/70 6.50 1/1/73-79 $ 665,000 $85,000 per year 6.50 1/1/80 85,000 $45,000 per year 6.75 1/1/81-82 90,000 '- $45,000 per year 6.90 1/1/83-84 90,000 $40,000 per year 7.00 1/1/85-89 200,000 $15,000 per year 7.00 1/1/90-91 30,000 - Total Improvement Bonds of 1970 Special Assessment Debt Service Fund $1 ,160,000 Improvement Bonds of 1972 January 1 , 1973 10/1/72 3.80 1/1/73 $ 75,000 January 1 , 1974 3.80 1/1/74 110,000 $150,000 per year 3.80 1/1/75-76 300,000 $150,000 per year 4.10 1/1/77-78 300,000 $150,000 per year 4.40 1/1/79-80 300,000 - $150,000 per year 4.60 1/1/81-82 300,000 $75,000 per year 4.80 1/1/83-84 150,000 �, $ 75,000 per year 5.00 1/1/85-86 150,000 _. January 1 , 1987 5.10 1/1/87 75,000 January 1 , 1988 5.20 1/1/88 75,000 • 47 CITY OF FRIDLEY, MINNESOTA eTh BONDS PAYABLE - ALL FUNDS (CONTINUED) DECEMBER 31 , 1972 "^ Issue Interest Maturity Principal date rate date amount Special Assessment Debt Service Funds - Definitive Bonds (Continued) Improvement Bonds of 1972 (Continued) January 1 , 1989 10/1/72 5.20% 1/1/89 $ 50,000 $50,000 per year 5.25 1/1/90-91 100,000 $50,000 per year 5.30 1/1/92-94 150,000 Total Improvement Bonds of 1972 Special Assessment Debt Service Fund $2,135,000 Total Special Assessment Definitive Bonds $7,546,000 General Debt Service Funds Park Bonds February 1 , 1973 5/1/62 3.40 2/1/73 $ 20,000 January 1 , 1973 1/1/63 3.50 1/1/73 20,000 January 1 , 1974 3.50 1/1/74 25,000 -- Total Park Bonds $ 65,000 Civic Center Bonds ._ February 1 , 1973 5/1/65 3.20 2/1/73 $ 20,000 $25,000 per year 3.20 2/1/74-75 50,000 $25,000 per year 3.30 2/1/76-78 75,000 430,000 per year 3.40 2/1/79-81 90,000 February 1 , 1982 3.50 2/1/82 30,000 $35,000 per year 3.50 2/1/83-86 140,000 Total Civic Center Bonds $ 405,000 Total General Debt Service Funds $ 470,000 • 49 CITY OF FRIDLEY, MINNESOTA eTh BONDS PAYABLE - ALL FUNDS (CONTINUED) DECEMBER 31 , 1972 Issue Interest Maturity Principal date rate date amount REVENUE BONDS Public Utilities Sinking Fund Water and Sewer Revenue Bonds of 1956 $15,000 per year 9/1/56 4.50% 9/1/73-76 $ 60,000 Total Water and Sewer Revenue Bonds of 1956 $ 60,000 Water No. 75 February 1 , 1973 5/1/65 3.20 2/1/73 $ 20,000 -- February 1 , 1974 3.20 2/1/74 35,000 February 1 , 1975 3.20 2/1/75 20,000 February 1 , 1976 3.30 2/1/76 35,000 $50,000 per year 3.30 2/1/77-78 100,000 $50,000 per year 3.40 2/1/79-81 150,000 $50,000 per year 3.50 2/1/82-87 300,000 February 1 , 1988 3.50 2/1/88 20,000 Total Water No. 75 Bonds $ 680,000 Water Bonds of 1970 January 1 , 1973 7/1/70 6.50 1/1/73 $ 35,000 $40,000 per year 6.50 1/1/74-75 80,000 $45,000 per year 6.50 1/1/76-77 90,000 $50,000 per year 6.50 1/1/78-79 100,000 $55,000 per year 6.50 1/1/80 55,000 $55,000 per year 6.75 1/1/81 55,000 $45,000 per year 6.75 1/1/82 45,000 Total Water Bonds of 1970 $ 460,000 Total Water and Sewer Revenue Bonds $1 ,200,000 Total Definitive Bonds $9,216,000 Special Assessment Debt Service Funds - Temporary Bonds Sewer, Water and Storm Sewer No. 106 7/1/72 7.00 7/1/75 $ 110,000 1972 Street 9/1/72 7.00 9/1/75 $ 430,000 Total Special Assessment Temporary Bonds $ 540,000 Total bonds outstanding $9,756,000 50 CITY OF FRIDLEY, MINNESOTA - DEBT SERVICE REQUIREMENTS - ALL FUNDS DECEMBER 31 , 1972 _ Year Principal Interest Total - 1973 $ 1 ,019,000 $ 406,216 $ 1 ,425,216 1974 932,000 389,528 1 ,321 ,528 1975 1 ,435,000 351 ,150 1 ,786,150 - 1976 810,000 276,178 1 ,086,178 1977 760,000 240,442 1 ,000,442 1978 750,000 207,426 957,425 - 1979 665,000 176,032 841 ,032 1980 600,000 147,430 747 ,430 1981 505,000 121 ,990 626,990 1982 500,000 98,730 598,730 - 1983 295,000 80,572 375,572 1984 260,000 68,002 328,002 1985 255,000 56,176 311 ,175 - 1986 250,000 44,512 294,512 1987 195,000 33,862 228,863 1988 155,000 24,850 179,850 1989 90,000 18,000 108,000 1990 65,000 13,462 78,463 1991 65,000 9,788 74,788 r1- 1992 50,000 6,625 56,625 1993 50,000 3,975 53,975 1994 50,000 1 ,325 51 ,325 $ 9,756,000 $ 2,776,271 $ 12,532,271 CERTIFICATES OF INDEBTEDNESS - GENERAL FUND DECEMBER 31 , 1972 - Interest Maturity Principal rate date amount - Certificates of Indebtedness maturing July 1 , 1973 5 3/8% 7/1/73 $10,000 July 1 , 1974 5 3/8% 7/1/74 6,735 - Total certificates of indebtedness $16,735 - • 51 CITY OF FRIDLEY, MINNESOTA ASSESSED VALUATIONS, TAX LEVIES AND MILL RATES (Shown by year of tax collectibility) 1970 1971 1972 1973 Assessed Valuations Real estate $19,189,965 $23,921 ,229 $24,721 ,145 $89,400,378 Personal property 3,245,428 3,687,092 4,080,720 6,187,860 Actual assessed $22,435,393 $27,608,321 $28,801 ,865 $95,588,238 Exempt personal 1 ,155,935 1 ,210,692 N/A N/A Total $23,591 ,328 $28,819,013 $28,801 ,865 $95,588,238 Tax Levies General Fund $ 909,650 $. 1 ,001 ,209 $ 923,625 $ 1 ,075,464 .. Public Employees ' Retirement Association Fund 90,312 47,402 59,566 53,954 Firemen 's Relief Association Fund 24,057 27,523 17,602 13,776 Police Pension Association Fund 44,610 55,862 57,547 49,992 General Debt Service Funds 83,590 81 ,531 67,200 Total $ 1 ,068,629 $ 1 ,215,586 $ 1 ,139,871 $ 1 ,260,386 Mill Rates General Fund 38.56 34.74 32.07 10.84 " Public Employees ' Retirement Association Fund 3.83 1 .64 2.07 .54 Firemen's Relief Association -- Fund 1 .02 .96 .61 .14 Police Pension Association Fund 1 .89 1 .94 2.00 .51 ._ General Debt Service Funds 2.90 2.83 .68 Total 45.30 42.18 39.58 12.71 Note: The City of Fridley will receive $46,101 directly from the State of Minnesota as a partial replacement for personal property tax in 1973. The 1971 Minnesota State Legislature exempted from assessment most personal property not previously exempted. The Legislature also set market value as the basis for the assessment of real property. The effect is an increase in the assessed value of real property and a reduction in the mill rate. 52 CITY OF FRIDLEY, MINNESOTA 1 n TAX LEVIES AND TAX COLLECTIONS YEARS 1963 THROUGH 1972 - Collections Percentage Collection of current of levy of prior Ratio _ year's taxes collected years ' taxes of total Year Total during fiscal during fiscal during fiscal Total collections collected tax levy period period period collections to tax levy 1963 $ 407,343 $ 394,611 96.87% $ 5,011 $ 399,622 .9810:1 1964 471 ,095 456,350 96.87 7,243 463,593 .9840:1 - 1965 565,667 547,313 96.76 7,658 544,971 .9811 :1 1966 641 ,945 618,252 96.31 10,003 628,255 .9787:1 w. 1967 753,242 721 ,568 95.79 16,160 737,728 .9794:1 1968 757,325 743,851 98.22 29,672 773,523 1 .0213:1 1969 904,756 877,150 96.95 16,349 893,499 .9875:1 (M- 1970 1 ,068,629 1 ,038,922 97.22 12,177 1 ,051 ,099 .9835:1 1971 1 ,215,586 1 ,136,296 93.47 27,563 1 ,163,859 .9574:1 1972 1 ,139,871 1 ,119,975 98.25 75,812 1 ,195,787 1 .0490:1 7 }'f t n•� 53 CITY OF FRIDLEY, MINNESOTA INSURANCE COVERAGE DECEMBER 31 , 1972 All risk, direct physical loss coverage Buildings and contents (except liquor stock) - 90% Co-insurance $3,618,168 Boiler insurance 500,000 Contractor's equipment 229,997 Signs 10,000 Fire and extended coverage - Liquor contents (include stock) 504,000 Comprehensive liability, including automobiles Bodily injury Each person 100,000 Each occurrence 300,000 Property damage 100,000/300,000 Liquor liability 1 ,000,000 '- Open stock burglary 10,000 Comprehensive and collision, automobile Passenger vehicles Actual cash value Other vehicles Stated value I Business interruption, liquor stores 350,000 _^ Money and securities, inside and outside premises, all locations 15,000 Depository, forgery bond 10,000 Workmen's compensation Statutory EMPLOYEES' SURETY BONDS DECEMBER 31 , 1972 Surety Name Position bond Gerald R. Davis City Manager $ 25,000 -- Marvin C. Brunsell City Clerk 1 ,000 Marvin C. Brunsell Treasurer 25,000 Mervin J. Herrmann Assessor 500 Leon Madsen Deputy Assessor 500 Walter J. Mulcahy Appraiser 500 All employees are covered by a blanket faithful performance bond of 15,000