1976 Annual Financial Report fl
n
r ANNUAL FINANCIAL REPORT
of the
CITY OF FRIDLEY , MINNESOTA
7
for the year ended
DECEMBER 91 , 1816
� DEPARTMENT OF FINANCE
MARVIN C. BRUNSELL, DIRECTOR OF FINANCE
r-)1 MEMBER OF MUNICIPAL FINANCE OFFICERS' ASSOCIATION
OF THE UNITED STATES AND CANADA
CITY OF FRIDLEY, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
DECEMBER 31 , 1976
� { ELECTED OFFICIALS
i
Term of office
expires January
Elected
Mayor - Wi 11 i am J. Nee 1978
Council
Wallace R. Starwalt 1977
Carroll A. Kukowski 1978
Edward J. Fitzpatrick 1979
Edward L. Hamerni k 1979
r1
!
Effective January 1977
Mayor - William J. Nee 1978
I I Counci 1
II Carrol A. Kukowski 1978
Edward J. Fitzpatrick 1979
Edward L. Hamernik 1979
Dennis L. Schneider 1980
APPOINTED OFFICIALS
Appointed
City Manager - Nasim M. Qureshi
Clerk-Treasurer - Marvin C. Brunsell
Attorney - Vi rgi 1 C. Herri ck
Department Heads
Finance Director - Marvin C. Brunsell
Public Safety Director - James P. Hill
Parks and Recreation Director - Charles A. Boudreau
Fire Chief - Robert S. Hughes
Public Works Director - Richard N. Sobiech
Division Heads
I I City Assessor - Mervin Herrmann
Accounting Officer - Randy C. Fury
Liquor Stores Manager - Robert L. McGuire
n Assistant City Engineer - Thomas A. Colbert
I + Public Works Superintendent - Ralph S. Volkman
Cormnuni ty Development Director - Darrel G. Clark
Civil Defense Director - Robert D. Aldrich
Naturalist - Dan E. Huff
El
II
J J `i] 1 T1A 1 ) - ] I 7 _ 1 -7 ,_.J _I
CITY OF FRIDLEY
ORGANIZATION CHART
I ELECTORATE
IMAYOR AND CITY COUNCIL I
IPlanning Commission I ,
I Charter Commission CATV Commission
Community Development Commission Human Resources Commission Police Commission Board of Health
Parks & Recreation Commission Appeals Commission Housing & Redevelopment Authority
Environmental Quality Commission
CITY MANAGER
I LEGAL I _ I PERSONNEL I
iPURCHASINGI
1
NATURE INTERPRETATION PARK & RECREATION PUBLIC WORKS I FINANCE DEPARTMENT I POLICE FIRE
Parks Engineering Accounting & Police Protection Fire Protection
Data Processing
Recreation Utilities ( Animal Control Fire Prevention
Assessing &
Special Assessments
Band Street Maintenance Civil Defense
Elections &
Planning Registration
Building Inspection Liquor Stores
CITY OF FRIDLEY, MINNESOTA_
TABLE OF CONTENTS
fl Exhibit
Number Page
Ij City Manager's Letter
Finance Director's Letter
Accountant's Opinion
II SECTION I
COMBINED FINANCIAL SECTION
Combined Balance Sheet - All Funds Exhibit I 1
Combined Statement of Revenue -
General and Special Revenue Funds Exhibit II 3
Statement of Investments Exhibit III 5
II Statement of Cash and Security for Deposits Exhibit IV 7
I Statement of Cash Receipts and
I Disbursements - All Funds Exhibit IV 7
Combined Statement of Delinquent
rlTaxes - Receivable by Funds Exhibit V 8
Schedule of Bonds Payable - All Funds Exhibit VI 9
SECTION II
flFINANCIAL SECTION BY FUNDS
General Fund
Balance Sheet Exhibit VII 13
rl Analysis of Fund Balance Exhibit VIII 14
II Statement of Revenue - Estimated and Actual Exhibit IX 15
II Statement of Expenditures -
rlCompared with Authorizations Exhibit X 16
Special Revenue Funds
Combined Balance Sheet Exhibit XI 19
Analysis of Fund Balances Exhibit XII 20
flCombined Statement of Revenue and Expenditures Exhibit XIII 2.1
1
7
r1-1 CITY OF FRIDLEY, PIINNESOTA
TABLE OF CONTENTS (CONTINUED)
Exhibit
r, Number _ Page
General Debt Service Fund
r F-1
Balance Sheet Exhibit XIV 22
Statement of Revenue and Expenditures Exhibit XV 23
II Capital Project Funds
Combined Balance Sheet Exhibit XVI 24
' Analysis of Fund Balances Exhibit XVII 25
Statement of Revenue and Expenditures Exhibit XVIII 26
Enterprise Funds
rl Municipal Liquor Fund
Balance Sheet Exhibit XIX 27
Analysis of Changes in Retained Savings Exhibit XX 28
Statement of Income Exhibit XXI 29
Statement of Operating Expenses Exhibit XXII 31
ri
Statement of Changes in Financial Position Exhibit XXIII 32
n Water and Sewer Revenue Bond Fund
f ! Balance Sheet Exhibit XXIV 33
Statement of Changes in Financial Position Exhibit XXV 34
Statement of Income Exhibit XXVI 35
Analysis of Change in Sinking and Reserve Accounts Exhibit XXVII 37
flSpecial Assessment Funds
Combined Balance Sheet Exhibit XXVIII 38
.. Analysis of Fund Balances Exhibit XXIX 39
r•. Statement of Cash Receipts and Disbursements Exhibit XXX 40
n
1
r-,
r-,
CITY OF FRIDLEY, MINNESOTA
ri
TABLE OF CONTENTS (CONTINUED)
Exhibit
Number Page
Trust and Agency Funds
^ Industrial Revenue Bond Fund
Balance Sheet Exhibit XXXI 41
( ! Statement of Cash Receipts and Disbursements Exhibit XXXI 41
General Fixed Assets
Statement of General Fixed Assets Exhibit XXXII 42
General Long Term Debt
Statement of General Long Term Debt Exhibit, XXXIII 43
Notes to Financial Statements
Note 1 - Summary of Significant Accounting Policies- 44
All Funds
Note 2 - Pending Litigation 44
Note 3 - Deferred Credit - Metropolitan Waste Control
Commission - Water and Sewer Revenue Bond
Fund 45
Note 4 - Pension Plans 45
Note 5 - Leases 46
Note 6 r Bonded Debt 46
SECTION III
STATISTICAL SECTION
General Fund Expenditure Analysis by Function Table 1 47
7 General Fund Revenues by Source Table 2 48
Property Tax Levies and Collections Table 3 49
Assessed Value and Estimated Market Value of
All Taxable Property Table 4 50
History of Tax Levies and Mill Rates Table 5 52
7.\
..
T,
6 CITY OF FRIDLEY, MINNESOTA
0�/ TABLE OF CONTENTS (CONTINUED)
Exhibit
Number Page
iiStatement of Valuations and Levies by Classes of
Property - for Taxes Payable in 1976 Table 6 54
iiStatement of Valuations and Levies by Classes of
Property - for Taxes Payable in 1977 Table 7 55
rd Special Assessment Levies and Collections Table 8 56
Debt Service Requirements - All Funds Table 9 57
r,
Debt Service Requirements - General Obligation Bonds Table 10 58
rr Debt Service Requirements - Permanent Special
Assessment Bonds Table 11 59
Debt Service Requirements - Temporary Special
rr Assessment Bonds Table 12 60
Debt Service Requirements - Public Utility Revenue
t' and Water Improvement Bonds Table 13 61
Computation of Legal Debt Margin Table 14 62
r Property Tax Rates and Tax Levies - All Overlapping
Governmental Units Table 15 64
V Computation of Direct and Overlapping Bonded Debt
and Comparative Debt Ratios Table 16 66
r Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General Government
Expenditures Table 17 67
r Ratio of Net Bonded Debt to Property Values and
Net Bonded Debt Per Capita Table 18 68
✓ Schedule of Insurance in Force Table 19 69
City Capital Improvement Financing Policy Table 20 70
✓ Miscellaneous Statistical Information Table 21 71
T
h
r
CITY OF FRIDLEY
6431 UNIVERSITY AVENUE N.E., FRIDLEY, MINNESOTA 55432
April 15, 1977
The Honorable Mayor and City Council
City of Fridley
Fridley, Minnesota 55432 TELEPHONE ( 612)571-3450
Council Members :
rThis letter is the preface to the 1976 annual financial report
of the City of Fridley. The report has been prepared and
submitted in accordance with Section 7.14 of the City Charter.
The report has been prepared under the direct supervision of
I Marvin C. Brunsell , Director of Finance.
The accounts and fiscal affairs have been audited by the George
M. Hansen Company an independent firm of Certified Public
Accountants.
The report is presented in three parts , a letter of transmittal ,
the financial section, and the statistical section. The
financial section shows combined financial information and
financial information by fund, summarizes the financial condition
II of the City, and is certified by the George M. Hansen Company.
The statistical section contains tables and data having reference
value for those who invest in the City of Fridley bonds and
others interested in financial statistics of municipalities.
This fiscal report represents the detailed and comprehensive
r financial statement of the City and is designed to show the
City's financial condition and operation of city government. A
careful analysis of the financial activity will verify sound
fiscal management and supports the City's A-1 bond rating.
V ry truly yours ,
Nasim M. Qureshi
City Manager
rriTh
7
Air CITY OF FRIDLEY
8431 UNIVERSITY AVENUE N.E., FRIDLEY, MINNESOTA 55432
TELEPHONE ( 612)571.3450
April 15, 1977
Mr. Nasim M. Qureshi
City Manager
City of Fridley
Dear Mr. Qureshi :
The annual financial report for the City of Fridley for the fiscal year ended
December 31 , 1976 is herewith submitted.
ACCOUNTING SYSTEM AND REPORTS
The organization form and contents of this report were prepared generally in
accordance with standards prescribed by the Municipal Finance Officers Association
of the United States and Canada, the American Institute of Certified Public
Accountants , the State Auditor's Office, State of Minnesota, and the City Charter.
The City of Fridley operated on a modified accrual basis of accounting. Major
revenues are recorded when earned and expenditures are recorded when incurred.
A complete budgetary system of accounts is maintained for those funds where
governmental budgetary principles are applicable.
' Budgetary control is maintained in compliance with 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, automatically be spent. The policy provides for
flexibility in that where need has been properly demonstrated, and adjustment
can be made within the department's budget by the City Manager, or between City
departments 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
revenues unless the actual receipts exceed such revenue estimates , and in that
event not beyond such actual receipts. 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 has not borrowed funds during the past year either on a short term basis ,
or a long term basis , to meet current operating expenses.
r Th The City of Fridley has computerized substantially all of its financial operations.
This has been done through the use of computer facilities and programs available
r
El
7
Ti through the "LOGIS" organization.
The objective of LOGIS is to provide a computer based management information
system for use by Minnesota municipalities.
The Local Government Information Systems Association, "LOGIS," was formed under
the Minnesota Joint Powers Act to provide an organization through which a number
of municipalities could jointly and cooperatively provide for the establishing,
operation , and maintenance, of data processing facilities and management informa-
tion systems for the use and benefit of the members and others. The Articles of
Agreement became effective May 25, 1972 and the By-Laws were adopted May 26, 1972.
The accounting modules which have been computerized are the payroll module, the
utility billing module, the financial control module, the equipment control module,
r� the fixed asset module and the liquor inventory module.
II, The following is a brief explanation of the purpose of each type of fund used in
managing and accounting for City operations.
GENERAL FUND
Purpose
The General Fund was established to account for revenues and expenditures necessary
to provide basic governmental services to the City, such as general government,
public safety, highway maintenance, park and recreation services. This is one of
the three operating funds of the City. The other two operating funds are the
Public Utility Fund and the Municipal Liquor Fund.
ri Comments
On December 31 , 1976, the General Fund showed an unappropriated fund balance of
$834,196 and an appropriated fund balance of $356,335. The appropriated fund
balance includes the amount necessary to fully reserve the City's accrued liability
for vacation benefits for all City employees. It also includes the estimated
r., potential liability for sick leave benefits for all City employees. The City's
liability for sick leave accrual was based on one-third of the total sick leave
accumulations for all City employees. The unappropriated fund balance of $834,196
is available to finance future City budgets. In actual practice, this represents
working capital for the General Fund operations. The City receives most of its
tax revenues during the months of July and December. This necessitates carrying
a relatively high fund balance in order to maintain the City's policy of not
7 funding General Fund operating expenditures by borrowing. The General Fund
1 balance increased by $136,372 in 1976. Of the $136,372, $98,749 was the result
of actual expenditures being under budgeted expenditures.
fIn the financial statements which follow, revenues are recorded by source while
expenditures are recorded by division. Included in general property taxes in
71-
7
, 1
rlthe statement of revenue, are taxes and payments from the State Property Tax
Relief Fund for Homestead Credit.
7 A plan of financial operations of the fund is set forth in the annual budget
adopted by the City Council . General Fund statements are prepared to show the
budget estimate and the actual amount expended. A condensed summary of revenue
-. and expenditures is shown below.
Revenues received for General Fund operations totaled $3,412,839 in 1976, an
increase of $457,989 over the previous year. The following table represents
an analysis of the major revenue sources for the General Fund for the years
1974, 1975 and 1976.
1976 1975 1974
Revenue Source Budget Actual Actual Actual
r,
General property taxes $1 ,734,566 $1 ,762 ,205 $1 ,619,966 $1 ,344,632
Licenses and permits 125,450 144,451 111 ,728 124,456
Intergovernmental revenue 795,654 811 ,406 648,872 601 ,266
Charges for current services
57,878
63,200
59,936 58,243
i Fines and forfeitures 55 ,000 66,453 62,902 54,686
From use of money and property 63,884 83,939 68,126 66 ,417
Other revenue 75,003 95,797 47,627 46,151
Interfund transfers 380,043 385,388 335,693 323,690
Prior year's fund balance 92 ,735
Total $3,380,213 $3,412,839 $2,954,850 $2,619,541
Expenditures for general governmental operations totaled $3,281 ,464 in 1976, an
7 increase of $412,019 over 1975.
Expenditure by Function
7 General government $ 515,865 $ 476,286 $ 436,032 $ 389,955
Public Safety 1 ,163,971 1 ,146,181 1 ,016,774 893,201
�
Civic Center 90,990 80,067 77,753 61 ,449
IJ Public Works 902,250 879,626 755,904 642,438
Parks and Recreation 707,137 699 ,304 582,982 493,160
�1 Reserve for contingencies -0- -0- -0- -0-
Total $3,380,213 $3 ,281 ,464 $2,869,445 $2,480,203
7 Levy Limitations
Minnesota Levy Limitation Law was adopted in 1972, and in general has placed a
.. limitation on the amount of increased property tax which a City can levy. The
r,
n
•-,
r-,
amount of increase is limited to six percent per capita per year. Since
inception , various amendments to the law have been enacted, but the basic
principle has remained the same. The following table summarizes the City's
compliance with the law for 1975 and 1976:
1976 1975
Authorized levy $1 ,704,706 $1 ,432,811
Plus allowable special levies 353,724 396,926
Total allowable levy $2,058,430 $1 ,829,737
Actual levy 1 ,854,061 1 ,662,544
Excess not used $ 204,369 $ 167,193
The City is operating within the authorized levy limitation. In the year
1976, the City was $204,369 under the levy limitation.
Fiscal Disparities
^ The State Legislature enacted a "Fiscal Disparity Law" in 1971 which was not
implemented until taxes payable in 1975 due to a constitutional challenge. The
law provides for the "pooling" of forty percent 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 $4,541 ,034 in 1976.
r
SPECIAL REVENUE FUNDS
Purpose
Special revenue funds are used to account for revenue derived from specific
taxes or other ear-marked 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
ii used for maintenance purposes are accounted for in the General Fund. Transfers
are also made back to this fund from special assessment funds. These funds are
derived from the excess of the construction funds received from the State of
Minnesota, plus the special assessments levied, less the cost of the project.
' i
J
flThis excess is transferred back to the Municipal State-Aid Fund where the funds
are ear marked for seal coating projects , or the City's share of sidewalk or
�., street improvement projects.
' ' Revenue Sharing Fund
7 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
r, accordance with the provision of this act. The City's share of these Revenue
Sharing Funds for the year 1976 was $198,863.
Revenue Sharing Funds are transferred from the Revenue Sharing Fund to the
General Fund where the Revenue Sharing amounts are budgeted. The City maintains
a separate Revenue Sharing Budget on a memo basis. The past policy of the
City Council has been to use Revenue Sharing Funds primarily for capital
outlay items.
Anti-Recession Revenue Sharing Fund
Anti-Recession Funds were received by the City in November of 1976, and have
been deposited in a fund created for this purpose. As of December 31 , 1976, the
^'Th City Council had not appropriated these funds.
GENERAL DEBT SERVICE FUNDS
Purpose
ii
Debt Service Funds account for money devoted to the payment of interest and
principal on long-term general obligation debt (other than Special Assessment
Debt Service).
This fund is used for the accumulation of moneys for payment of general
obligation bonds and interest therein. Property taxes provide the necessary
revenue.
CAPITAL PROJECT FUNDS
Purpose
r-,
Capital Project Funds receive and disburse moneys used for acquisition of
capital facilities other than those financed by Special Assessments and
Enterprise Funds.
Capital Project Fund
This fund was established to account for the receipts and disbursements of a
i
71
revolving type capital improvement fund. No expenditures have been made from
this fund to date.
Islands of Peace
This fund was established to account for the Islands of Peace Project. A
$7,000 grant has been authorized by the State of Minnesota for use in conjunction
with the Islands of Peace Project. The City has not yet received the funds
from the grant, but the City has been notified by the State that the grant has
r been approved.
North Park Fund
This fund has 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 has been received
from the State of Minnesota for use on this project.
n
ENTERPRISE FUNDS
! 1 Purpose
7'") Enterprise funds account for the financing of services to the general public
in which all or most of the cost involved are paid in the form of charges by
the users of such service. In the City of Fridley, Enterprise Funds are used
to account for the operation of the Public Utility System and the Municipal
Liquor Stores. Except for ownership, Enterprise Funds bear a close resemblance
to privately owned utility or service enterprises.
Municipal Liquor Fund
The Municipal Liquor Fund was established to account for the operation and
7 financing of the City owned Municipal Liquor Stores. This is an Operating Fund.
The City presently operates two off-sale liquor stores. One is located at
., 6289 Highway 65 and 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 City is operating
under a five year lease at the University Avenue location. The lease term began
on August 1 , 1974 and will run to July 31 , 1979. The lease provides for annual
rentals of $8,232 for the two year period ending July 31 , 1978, and $8,532 per
year for the twelve months ending July 31 , 1979.
Shown below is a condensed summary of liquor store operations for the years
nI
n
1:1",
f1976, 1975, 1974 and 1973.
n 1976 1975 1974 1973
Sales $1 ,061 ,562 $1 ,100,224 $1 ,074,169 $1 ,067,330
Gross profit 214,480 231 ,768 245,843 235,182
pNet profit 98,963 90,939 107,339 52,109
Transfers to the General Fund $ 85,000 $ 75,000 $ 75,000 $ -0-
nRetained earnings of the Municipal Liquor Fund were $693,625 on December 31 , 1976,
compared to $679,662 on December 31 , 1975. i
n Water and Sewer Revenue Bond Fund
' This fund accounts for the operation and financing of City owned sewer and
n water systems. In 1956 and in 1970, revenue bonds in the amount of $170,000
1 and $460,000, respectively, were issued. In 1975, the bonds issued in 1970
were refunded bond substituted. On December 31 , 1976,
n ,663 of these and bonds a new were outstanding issue and payable in future years. Debt
Service Accounts for these bond issues are being maintained in accordance
with the provisions of the bond sale agreements. The agreements provide
that net revenues of the water and sewer operation, equal to the principal
and interest maturities of the revenue bonds due in the following year be
n
pledged as collateral .
n In 1969, the fund assumed a $770,000 liability for bonds payable along with
f ) future interest obligations of the Water No. 75 Improvement Bonds. A total
principal amount of $570,000 for this bond issue was outstanding on
n December 31 , 1976. 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
revenue from the Water and Sewer Revenue Bond Fund.
I I The receivable from the Metropolitan Waste Control Commission of $428,401
represents the City's share of the equity in the Minneapolis Sewer System
n which was acquired by the Board on January 1 , 1971 , and the balance of the
I ' reserve capacity charges which were advanced to the Commission during 1971 and
1972. The reserve capacity charges of $51 ,260 at December 31 , 1976 will be
n repaid with interest directly to the City over the next twelve years. The
remainder 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
flinstallments with interest through 1999.
The City follows the practice of carrying the cost of the distribution system,
financed by special assessments , in the general fixed asset fund. Those
n r
n
n A,R-6,2,„ 6(5,46
_...--- -----'-- .
improvements to the utility system, paid for or financed by the Water and
Sewer Revenue Bond Fund, are carried in this fund.
The Water and Sewer Revenue Bond Fund has transferred moneys 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.
Retained earnings on December 31 , 1976 were $2,775,607, compared to $2,460,780
on December 31 , 1975.
Shown below is a condensed summary of operations of the Water and Sewer
Revenue Bond Fund for the years 1976, 1975, 1974 and 1973.
1976 1975 1974 1973
Water account
Operating revenue $707,872 $554,174 $548,467 $413,027
Operating expenses 460,948 419 ,532 458,314 416,621
Operating income (loss) $246,924 $134,642 $ 90,153 $ (3,594)
Sewer account
Operating revenue $579 ,091 $615,086 $596,560 $611 ,448
Operating expenses 647,182 581 ,386 414,726 407,545
Operating income (loss) $(68,091 ) $ 33,700 $181 ,834 $203,903
SPECIAL ASSESSMENT FUNDS
Purpose
Special Assessment Funds are employed 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 specially benefit,
distinguish them from improvements which benefit the entire community and which
are paid for out of general revenues or through the issuance of general obligation
bonds.
Comments
The City employs the practice of issuing temporary three year bonds to finance
the improvements during the construction stage of projects. The temporary bonds
usually are in force past the time the special assessment rolls are adopted by
r..
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 amount of permanent bonds issued by the City to a minimum.
Special Improvements Revolving Fund
The purpose of this fund is to provide temporary financing for small improvement
projects.
TRUST AND AGENCY FUND
Purpose
Trust and Agency Funds account for assets held by the City as a trustee or
agent for individuals, private organizations , and other governmental units.
Comments
In the past, the City has maintained Trust and Agency Funds for Police Pensions ,
Fire Pensions and other City employee pension costs. These pension costs are
now accounted for in other City funds. The General Fund makes remittances to
r1 the State of Minnesota for Social Security, the Public Employees Retirement
Association , the Fridley Fire Relief Association , and the Fridley Police Relief
Association.
^" The cost of pensions is shown as part of the operating costs of the General
Fund for all regular governmental operations. Exceptions are those pension
costs associated with the Liquor Operation , the Public Utility Operation,
or pension costs associated with special assessement improvement projects.
These costs are now shown in their respective funds.
— Industrial Revenue Bond Fund
The only remaining Trust Fund of the City is the Industrial Revenue Bond Fund
which was set up to account for the deposit by a private corporation in connection
with an industrial revenue bond issue.
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 , Working Capital , or Trust 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
,k
7
H
a life longer than the fiscal year, and (3) it must be of significant value.
GENERAL LONG-TERM DEBT FUND
Purpose
General Obligation Bonds and other forms of Long-Term Debt supported by general
revenues , are obligations of a governmental unit as a whole and not its
individual constituent funds. Morever, 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 full faith and credit of the City, are accounted for and reported in a
separate self-balancing group of accounts entitled General Long-Debt Group of
Accounts. The group includes , in addition to, conventional General Obligation
Bonds , Time Warrants , and Notes which have a maturity of more than one year from
date of issuance.
Comments
As of December 31 , 1976, the Long-Term Debt of the City consisted of $310,000
in Definitive Bonds issued for the purpose of financing the Civic Center, and
$171 ,851 in Long-Term Contracts payable , issued for the purpose of financing
the addition to the City's Municipal Garage.
CITY INVESTMENT POLICY
r.
The City follows a policy of pooling the investments for all City funds and
prorating the interest earned back to each fund on the basis of each funds
average cash balance. During the year 1976, interest earnings totaled $532,220.
This is an increase of $39,723 over the $492 ,497 earned in the year 1975.
BOND RATING
The City's current bond rating is A-1 . This rating was awarded for the
Improvement Bond Sale held on February 9, 1976. The amount of the bond issue
was $1 ,550 ,000. The purpose of the bond issue was to refund temporary three-
year improvement bonds. The 1976 issue is payable 100% from special assessments
which were levied in 1975 or prior years. The City was awarded the A-1 bond
rating for the first time on March 1 , 1975.
PENSIONS
-, Comments
Employees in the City of Fridley are covered by five pension plans. They are ;
•, (1 ) the Fridley Fire Relief Association for Volunteer Firemen , (2) the Fridley
Police Pension Association for Police Officers hired prior to December 15, 1975,
n
OMR
(3) the 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 covering certain other City civilian employees , and (5) the
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.
A brief explanation of each of the pension plans follows :
Fridley Firemen's Relief Association
As of December 31 , 1976, there were thirty-six active Volunteer Firemen covered
by this pension system. The pension plan provides benefits for Volunteer Firemen
only, and provides no benefits for full-time Firemen. The City's full-time
Firemen are covered by the P.E.R.A. Police and Fire Plan. The Fridley Fire Plan
is actuarially sound. An audit report performed for the Fridley Volunteer
Firemen's Relief Association by the State Auditor's Office as of December 31 , 1975,
shows an actuarial surplus in the fund of $95,401 . Based on a letter from
Stennes & Associates , dated August 4, 1975, the cost of the plan is $22,090 per
year. Funding for the pension plan is provided entirely from the 2% rebate
received from the State of Minnesota. This rebate is in the form of a 2%
levy on all fire insurance premiums written in the City of Fridley. In 1976,
this source of revenue provided $33,773 to the fund, which was in excess of the
amount needed to meet the normal pension costs.
Fridley Police Pension Association
The Fridley Police Pension Association was incorporated on December 26, 1966
to be effective January 1 , 1967. On December 31 , 1976, the plan covered
twenty-seven sworn Police Officers on the City of Fridley Police Force. On
December 15, 1975, the City Council adopted an ordinance which has 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 has the affect of substantially
r, reducing the City's liability for newly hired Police Officers , as the State-
Wide Police and Fire Plan has less liberal retirement benefits in comparison
to the Fridley Police Pension Association. This action of the City Council has
been upheld by the Minnesota District Court.
An Audit Report prepared for the Fridley Police Pension Association by the
State Auditor's Office shows an unfunded actuarial deficit of $571 ,950 as
of December 31 , 1975. Assets of the association were shown as $695,277 and
total liabilities of $1 ,267,227. In 1969 , the State Legislature adopted
legislation requiring all municipalities in the State to gradually increase
their contributions to local pension plans such as the Fridley Police Pension
Association , so that by the year 1980 the level of funding would be such that
the actuarial deficit in the plan would be frozen. The purpose of the
legislation was to prevent an increase in unfunded pension liabilities , and to
cause the employee and employers to contribute sufficient funds to the plan to
fund the normal cost of the plan. The City has proceeded ahead of schedule
in increasing its contributions to the plan.
The normal cost of the pension plan is 25.85% of payroll according to Hewitt
Associates actuaries. In addition to meeting this normal cost, the 1969
Guidelines Act requires that interest on the deficit in the amount of 5% be
paid to the association. This is the funding level that is required to be
reached by the year 1980. The interest on the deficit amounts to approximately
5% of payroll . The total funding requirements of the plan, therefore , are
approximately 31% of covered payroll , with the employees contributing 6%.
The City receives a 2% rebate on automobile insurance policies written in the
City. This is for the purpose of helping pay the employers share of pension
costs. In 1976 , this amounted to $23 ,028. The City contributed $87,148 in
taxes during the year 1976. The total contributions to the fund, by the City,
were $110,176. This compares with a normal cost of the plan, assuming there
was no deficit, of $119 ,450. The amount the City and the employees contributed
is $5, 287 short of the level of funding that must be reached by 1980. Because
of the Council 's action in placing newly hired Police Officers in the State-
Wide Police and Fire Plan , the Fridley Police Pension Association Plan will
eventually be phased out. It is the intent of the City to meet or exceed the
funding requirements as provided by State law for this pension plan.
Public Employees. Retirement Association - Police and Fire Plan
As of December 31 , 1976, there were five full-time Firemen and the Public Safety
Director in the State-Wide Police and Fire Plan. The normal cost of this plan
is 20% of payroll . The employee contributes 8% of payroll and the employer 12%.
According the Executive Secretary of the Public Employees Retirement Association ,
their actuarial survey shows this plan was 77% funded as of December 30, 1976.
Basi c Public Employees Retirement Association P1 an
As of December 31 , 1976, there were thirty-two permanent employees and two
temporary employees covered by the State-Wide Basic Public Employees Retirement
Plan. Employees under this plan are not covered by Social Security. This is
a State-Wide Pension System covering local government employees throughout the
State of Minnesota, with the exception of the City of Minneapolis. The normal
cost of this pension plan is 16% of payroll , plus 22% to make up the actuarial
deficit. Employees contribute 8% of payroll and employers contribute 8%, plus
an additional 22% which is applied towards the actuarial deficit. State law
•- provides that the actuarial deficit is to be retired by 1997. According to
the Executive Secretary of P.E.R.A. , their actuarial survey shows the plan was
r.
63% funded as of June 30, 1976.
Coordinated Public Employees Retirement Association Plan
As of December 31 , 1976, there were seventy permanent employees and eight
temporary employees covered by this plan. Employees covered by this plan
receive approximately one-half of the benefits of those employees covered
by the Basic P.E.R.A. Plan. In addition , they receive Social Security
benefits . The normal cost of this plan is 8% of payroll , plus an additional
12% to make up the actuarial deficit of the fund. The employee contributes
4% of payroll and the employer 4% of payroll , plus an additional 11/2% to retire
the actuarial deficit. Under State law, the actuarial deficit is scheduled
to be retired by 1997. The Executive Secretary of P.E.R.A. states that their
actuarial survey shows the plan was 87% funded as of June 30, 1976.
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, Certified Public Accountants ,
is included with this report.
r1
Acknowledgement
The preparation of this report on a timely basis could not be accomplished
without the efficient and dedicated services of the entire staff of the Finance
Department. I want to express my special appreciation to Randy Fury and
Shirley Haapala for their assistance. I wish to also thank the office of the
City Manager 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.
P'4
Very truly yours ,
ar n C. runse
Assistant City Manager/Finance Director
r.
LTh
GEORGE M. HANSEN COMPANY
r'
Certified Public Accountants
SOUTH PLAZA BUILDING
MINNEAPOLIS, MINNESOTA 55416
ACCOUNTANTS ' OPINION
PR
Honorable City Council
City of Fridley, Minnesota
We have examined the financial statements of the various funds and account
groups of the City of Fridley for the year ended December 31, 1976, listed
r., in Sections I and II of the foregoing table of contents. Our examination
was made in accordance with generally accepted auditing standards and
included such tests of the accounting records and such other auditing
procedures as we considered necessary in the circumstances.
In our opinion, the aforementioned financial statements present fairly
the financial position of the various funds and account groups of the
/Th City of Fridley at December 31, 1976, and the results of operations of
such funds and the changes in financial position of the Enterprise and
Intragovernmental Service funds for the year then ended, in conformity
with generally accepted accounting principles applied on a basis consistent
r-• with that of the preceding year.
...9gzeer 777 7:142"17-42e-71- 67zar
F"'
March 22, 1977
#may �sn x}] .:Y 4 .
i t~n '
„ .„_,,,;.,.,,,,, . ,:::,..__....4.: . . , ., .. , „_.... , , .,
::„:"...7,-"•-• -.'* . - ' ' ' '1 '. ' '-- '' '
•
■
j 'k } € ' w `
,.Z k 5*
,.A r
T f+?<” b'Y ` fi
' "y€ -, ?';: t i it 4 m a °rtet r „ .re:EE ,4-3U W a'x * s ''a * �w 4 re
a a
CITY OF FRIDLEY, MINNESOTA
El
BALANCE SHEETS - ALL FUNDS
DECEMBER 31 , 1976
pi
Combined ri
(Memorandum Special
Only) General Revenue
ASSETS fl
Cash (deficit) $ (262,290) $ (200,033) $ 30,931
Investments, at cost
U. S. Government obligation 7,368,091 1 ,391 ,700 1 ,050,980
City of Fridley temporary bonds 1 ,650,000
Accounts receivable 1 ,234,587 254,469 112,536
Taxes receivable 94,628 90,993 ri
Special assessments receivable 5,468,411 17,376
Due from other funds 7,389
Inventories , at cost 147,434 11 ,705 ' I
Prepaid expenses 52,127 52,127
Fixed assets , at cost less accumulated
depreciation 27,521 ,423
Amount available in General Debt Service ri
Fund 49,081
Amount to be provided by future taxes 526,151
Total assets $43,857,032 $1 ,618,337 $1 ,194,447 (7
LIABILITIES, RESERVES AND FUND BALANCE pi
Accounts and contracts payable $ 741 ,853 $ 297,001 n
Deposits payable 191 ,947 15,047 II
Due to other funds 7,389 7,389
Bonded indebtedness - Future maturities
Definitive bonds fI
Principal 6,560,000
Temporary bonds (held by City of Fridley)
Principal 1 ,650,000 ri
Reserves 768,880 108,369 $ 66,668
Investment in general fixed assets 25,432,158
Retained earnings 3,469,232 n
Fund balance
Appropriated 3,956,194 356,335 1 ,021 ,880
Unappropriated 1 ,079,379 834,196 105,899
Total liabilities, reserves and rl
fund balance $43,857,032 $1 ,618,337 $1 ,194,447
r-1
7i
-1- . n
II
Exhibit I
General Water and Trust General
Debt Capital Municipal Sewer Special and Long Term
Service Project Liquor Utilities Assessment Agency Fixed Assets Debt
$ 779 $ 630 $ (1 ,541 ) $ 51 ,242 $ (144,210) $ (88)
45,930 61 ,032 215,191 1 ,564,919 3,033,605 4,734
1 ,650,000
7,000 139,974 720,608
2,372 1 ,263
5,451 ,035
7,389
130,494 5,235
221 ,253 1 ,868,012 $25,432,158
$ 49,081
526,151
$49,081 $77,314 $705,371 $4,210,016 $9,990,430 $4,646 $25,432,158 $575,232
$48,000 $ 6,714 $ 12,862 $ 205,425 $171 ,851
708 171 ,546 $4,646
835,663 5,414,337 310,000
1 ,650,000
2,372 1 ,263 5,032 585,176
$25,432,158
.. 693,625 2,775,607
46,709 (17,852) 2,549,122
45,903 93,381
$49,081 $77,314 $705,371 $4,210,016 $9,990,430 $4,646 $25,432,158 $575,232
..
-2-
II
CITY OF FRIDLEY, MINNESOTA
COMBINED STATEMENT OF REVENUE - EXPENDITURES AND ENCUMBRANCES
GENERAL AND SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED DECEMBER 31 , 1976
Special Revenue Funds n
I1
General Municipal Revenue Anti
Fund State Aid Sharing Recession
Revenues
General property taxes $1 ,762,205 f
Licenses and permits 144,451
Intergovernmental revenue 811 ,406 $110,826 $198,863 $23,063
Charges for current services 63,200 fl
Fines and forfeitures 66,453
Use of money and property 83,939 55,092 5,237
Transfers from other funds 385,388 167,781
Other revenue 95,797
Total $3,412,839 $333,699 $204,100 $23,063
i
Expenditures
General government $ 476,286 $ 66,000 $229,043 fl
Public safety 1 ,146,181
Civic Center 80,067
Engineering & inspection 267,501
Highways 612,125 136,575
Naturalist 103,685
Parks 363,460
1.1
Recreation 232,159 - -
Total $3,281 ,464 $202,575 $229,043 $ -0-
i
El
rl
' 1
n
-3- El
Exhibit II
Eliminations Combined Statement
Combined and 1976 1975
Total Adjustments Total Total
$1 ,762,205 $1 ,762,205 $1 ,619,966
144,451 144,451 111 ,728
1 ,144,158 $295,043 849,115 901 ,667
63,200 63,200 59,936
66,453 66,453 62,902
144,268 144,268 133,050
553,169 553,169 371 ,152
95,797 95,797 47,627
$3,973,701 $295,043 $3,678,658 $3,308,028
■ 1
$ 771 ,329 $295,043 $ 476,286 $ 436,032
1 ,146,181 1 ,146,181 1 ,016,774
80,067 80,067 77,753
267,501 267,501 230,742
748,700 748,700 672,574
103,685 103,685 77,248
363,460 363,460 210,809
232,159 232,159 294,925
$3,713,082 $295,043 $3,418,039 $3,016,857
-4-
CITY OF FRIDLEY , MINNESOTA 7
STATEMENT OF INVESTMENTS
DECEMBER 31 , 1976
Interest
Rate Maturity Cost
i
Federal National Mortgage Association 7.05% 3/10/77 $ 200,000
Federal National Mortgage Association 7.45 9/11/78 150,000 �
Federal Land Bank Bonds 6.35 10/20/77 50,781 ! I
Federal Land Bank Bonds 8.69 1/23/78 200,000
Federal Land Bank Bonds 6.80 10/23/79 204,282 ...
Federal Home Loan Bank Bonds 6.75 11/25/77 500,000
Federal Home Loan. Bank Bonds 6.66 2/27/78 100,875
Federal Home Loan Bank Bonds 6.07 5/25/79 191 ,715
Federal Home Loan Bank Bonds 6.70 11/25/80 511 ,154 n
Federal Home Loan Bank Bonds 6.70 11/25/80 179,370 II
U. S. Treasury Bills 6.00 1/11/77 38,039
U. S. Treasury Bills 5.66 3/8/77 47,241 n
U. S. Treasury Bills 5.30 4/5/77 23,682 II
U. S. Treasury Bills 6.10 4/5/77 65,952
Certificate of Deposit - Northwestern National , Mpls 6.00 1/17/77 150,000 .-
Certificate of Deposit - Northwestern National , Mpls 5.875 1/20/77 100,000
Certificate of Deposit - Northwestern National , Mpls 6.25 2/23/77 250,000
Certificate of Deposit - Northwestern National , Mpls 6.375 4/15/77 100,000
Certificate of Deposit - Northwestern National , Mpls 6.50 6/23/77 500,000 *'
Certificate of Deposit - Northwestern National , Mpls 6.25 12/16/31 500,000
Certificate of Deposit - Northwestern Nat' l , St. Paul 6.25 5/16/77 300,000
Certificate of Deposit - Fidelity, Minneapolis 6.625 6/23/77 375,000 ri
Certificate of Deposit - Fidelity, Minneapolis 6.50 7/10/77 400,000
Certificate of Deposit - Fidelity , Minneapolis 6.25 7/15/77 300,000
Certificate of Deposit - Fidelity, Minneapolis 6.25 8/16/77 100,000
Certificate of Deposit - Fidelity, Minneapolis 6.25 9/2/77 200,000
Certificate of Deposit - Fi deli ty , Minneapolis 5.80 11/17/77 200,000
Certificate of Deposit - First Northtown , Blaine 6.45 3/9/77 100,000
Certificate of Deposit - Twin City Federal Savings �1
& Loan , Fridley 7.00 3/31/78 100,000 II
Certificate of Deposit - Marquette Bank, Columbia
Heights 6.60 4/18/77 100,000
Certificate of Deposit - First National , Minneapolis 6.125 5/5/77 100 ,000
7
Certificate of Deposit - First Federal Savings &
Loan , Roseville 6.75 5/16/77 100,000
Certificate of Deposit - Hennepin Federal Savings n
& Loan , Minneapolis 6.75 7/18/77 100,000
Certificate of Deposit - Northern Federal Savings
& Loan, St. Paul 7.25 7/18/77 100,000 n
Certificate of Deposit - Midwest Federal Savings &
Loan , Minneapolis 7.00 4/11/78 100,000
Certificate of Deposit - Home Federal Savings & Loan, n
Columbia Heights 7.00 4/11/78 100,000 II
Short Term Government Securities - State Street Bank 5.19 Indefinite 125,000
Short Term Government Securities - State Street Bank 5.19 Indefinite 25,000
Short Term Government Securities - State Street Bank 5.19 Indefinite 30 ,000 n
Short Term Government Securities - State Street Bank 5.19 Indefinite 50,000
Short Term Government Securities - State Street Bank 5.02 Indefinite 100 ,000 �1
Short Term Government Securities - State Street Bank 5.01 Indefinite 200,000 n
-5-
11
Exhibit III
CITY OF FRIDLEY , MINNESOTA
STATEMENT OF INVESTMENTS (CONTINUED)
DECEMBER 31 ,1976
Interest
Rate Maturity Cost
City of Fridley Temporary Bonds
1975 Street 7.00% 3/15/78 $1 ,220,000
Sewer and Water No. 117 7.00 10/15/78 50,000
Sewer, Water and Storm Sewer No. 119 7.00 6/15/79 55,000
1976 Street 7.00 7/15/79 325,000
Total $9,018,091
Allocated by funds
General $1 ,391 ,700
r Special Revenue Funds 1 ,050,980
General Debt Service Fund 45,930
Capital Project Fund 61 ,032
Enterprise Funds 1 ,780,110
Trust and Agency Fund 4,734
Special Assessment Funds 4,683,605
Total $9,018,091
lb
-6-
CITY OF FRIDLEY, MINNESOTA Exhibit IV n
STATEMENT OF CASH AND SECURITY FOR DEPOSITS II
DECEMBER 31 , 1976 n
Face amount �,I
of securities —
pledged as
Cash collateral
•
Checking accounts - Fridley State Bank,
Fridley , Minnesota 7
General Account $ (267 ,790) $ 200,000*
Petty cash and change funds 5,500 7
Total cash $ (262,290)
7
Certificates of Deposit (included in investments)
Fidelity Bank & Trust Company , Minneapolis $1 ,575,000 $1 ,605,000*
First Northtown , Blaine 100,000 *
Northwestern National Bank , Minneapolis 1 ,600,000 1 ,710,000*
Northwestern National Bank, St. Paul 300,000 403,000* n
Twin City Federal Savings & Loan , Fridley 100,000 *
Marquette Bank , Columbia Heights 100,000 *
First National Bank , Minneapolis 100,000 *
First Federal Savings & Loan , Roseville 100,000 *
Hennepin Federal Savings & Loan , Minneapolis 100,000 * 7
Northern Federal Savings & Loan , St. Paul 100,000 *
Midwest Federal Savings & Loan , Minneapolis 100 ,000 *
Home Federal Savings & Loan , Columbia Heights 100,000 * n
Total investments in Certificates of Deposit $4,375,000 $3,715,000
*Additional security of $100 ,000 is provided by the Federal Deposit Insurance Corporation.
SUMMARY STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS 7
ALL FUNDS
YEAR ENDED DECEMBER 31 , 1976 n
Cash Cash
balance balance
January 1 , December 31 , 7
Fund 1976 Receipts Disbursements 1976
General Fund $(164,737) $ 7 ,769 ,993 $ 7,805,289 $(200 ,033) n Special revenue funds (20,985) 1 ,366,747 1 ,314,831 30,931
General debt service funds 82,841 82,062 779
Capital Projects 81 66,266 65,717 630
Liquor Fund (23,276) 1 ,061 ,562 1 ,039,827 (1 ,541 ) n
Water and Sewer Revenue
Bond Fund (14,913) 1 ,402,105 1 ,335,950 51 ,242
Special assessment funds 49,065 10,810,664 11 ,003,939 (144,210)
Trust and agency funds 5,000 5 ,088 (88) rin
Total $(174,765) $22,565,178 $22,652,703 $(262 ,29),) fl
-7- n
Exhibit V
r•
CITY OF FRIDLEY, MINNESOTA
COMBINED STATEMENT OF DELINQUENT
TAXES RECEIVABLE BY FUNDS
p.
I
1973 &
Funds Exhibit Total Prior 1974 1975 1976
General VII $74,206 $20,237 $8,194 $12,720 $33,055
Capital Improvement XVI 868 863
General Debt Service Fund XIV 1 ,980 545 242 409 784
Total $77,054 $20,782 $8,436 $13,129 $34,707
See accompanying Notes to Financial Statements.
r
-8-
Exhibit VI ' !
CITY OF FRIDLEY, MINNESOTA r 71
BONDS PAYABLE - ALL FUNDS
DECEMBER 31 , 1976
7
Issue Interest Maturity Principal
date rate date amount ` I
Special Assessment Debt Service
Funds - Definitive Bonds 'l
Improvement Bonds of 1960
January 1 , 1978 10/1/60 4.20% 1/1/78 $ 80,000
January 1 , 1979 4.20 1/1/79 75,000 fl
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
7
Total Improvement Bonds of 1960 Special Assessment Debt
Service Fund $ 380,000
7
Improvement Bonds of 1962
February 1 , 1977 5/1/62 3.80 2/1/77 $ 10,000
February 1 , 1978 3.80 2/1/78 5,000 j l
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 n
Service Fund $ 40 ,000
Improvement Bonds of 1963 7
$30,000 per year 1/1/63 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 fl
Service Fund $ 200,000
Refunding Bonds of 1964 7
i
$105,000 per year 2/1/64 3.40 2/1/77-79 $ 315,000
February 1 , 1980 3.40 2/1/80 40,000
Total Refunding Bonds of 1964 Special Assessment Debt
Service Fund $ 355,000
Improvement Bonds of 1965 7
$30,000 per year 5/1/65 3.30 2/1/77-78 $ 60,000
$30,000 per year 3.40 2/1/79-80 60,000 n
February 1 , 1981 3.40 2/1/81 25,000
$25,000 per year 3.50 2/1/82-85 100,000
February 1 , 1936 3.50- 2/1 /86 20,000
Total Improvement Bonds of 1965 Special Assessment Debt �)
Service Fund $ 265,000
-9-
Exhibit VI
Continued
^' CITY OF FRIDLEY, MINNESOTA
BONDS PAYABLE - ALL FUNDS CONTINUED)
DECEMBER 31 , 1976
., Issue Interest Maturity Principal
date rate date amount
Special Assessment Debt Service
" Funds - Definitive Bonds (Continued)
Improvement Bonds of 1967
January 1 , 1978 10/1/67 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 $ 460,000
Improvement Bonds of 1972
January 1 , 1978 10/1/72 4.10 1/1/78 $ 150,000
$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
.../Th $ 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
January 1 , 1989 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 $1 ,500,000
Refunding Bonds of 1975 (Improvement Bond Portion)
$98,276 per year 3/1/75 6.00 1/1/78-79 $ 196,552
January 1 , 1980 6.00 1/1/80 88,035
January 1 , 1981 6.00 1/1/81 47,250
January 1 , 1982 6.00 1/1/82 47,500
$50,000 per year 6.00 1/1/83-84 100,000
January 1 , 1985 6.00 1/1/85 40,000
... $45,000 per year 6.00 1/1/86-88 135,000
January 1 , 1989 6.00 1/1/89 10,000
Total Refunding Bonds of 1975 Special Assessment Debt
". Service Fund $ 664,337
Special Assessment Fund Bonds of 1976
^+ February 1 , 1977 2/1/76 3.75 2/1/77 $ 175,000
February 1 , 1978 4.00 2/1/78 175,000
,� February 1 , 1979 4.10 2/1/79 175,000
r, February 1 , 1980 4.30 2/1/80 175,000
-10-
Exhibit VI 1-1
Continued
CITY OF FRIDLEY, MINNESOTA n
BONDS PAYABLE - ALL FUNDS (CONTINUED) �,
DECEMBER 31 , 1976
7
Issue Interest Maturity Principal
date rate date amount fl
Special Assessment Debt Service
Funds - Definitive Bonds (Continued)
7
Special Assessment Fund Bonds of 1976 (Continued)
February 1 , 1981 2/1/76 4.50% 2/1/81 $ 175,000
February 1 , 1982 4. 70 2/1/82 175,000
7
February 1 , 1983 4.90 2/1/83 175,000
February 1 , 1984 5.00 2/1/84 125 ,000
February 1 , 1985 5.10 2/1/85 75,000 �
February 1 , 1986 5.25 2/1/86 25,000 ! I
February 1 , 1987 5.40 2/1/87 25,000
February 1 , 1988 5.60 2/1/88 25,000
February 1 , 1989 5.80 2/1/89 25,000
7
February 1 , 1990 6.00 2/1/90 25,000
Total Special Assessment Fund Bonds of 1976 Special
Assessment Debt Service Fund $1 ,550 ,000 7
Total Special Assessment Definitive Bonds $5,414,337 n
General Debt Service Funds
Civic Center Bonds
7
$25,000 per year 5/1/65 3. 30 2/1/77-78 $ 50,000
$30,000 per year 3.40 2/1/79-81 90,000
February 1 , 1982 3.50 2/1/82 30,000 n
$35,000 per year 3.50 2/1/83-86 140,000 I
Total Civic Center Bonds $ 310,000
7
Total General Debt Service Funds $ 310,000
REVENUE BONDS n
Public Utilities Sinking Fund II
Water No. 75 7
$50,000 per year 5/1/65 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 2/1/83-87 300,000
7
February 1 , 1988 3.50 2/1/88 20,000
Total Water No. 75 Bonds $ 570,000 ./ fl
J
r ,
h
it
-11-
li
Exhibit VI
Continued
CITY OF FRIDLEY, MINNESOTA
BONDS PAYABLE - ALL FUNDS (CONTINUED)
DECEMBER 31 , 19 76
Issue Interest Maturity Principal
date rate date amount
Public Utilities Sinking Fund (Continued)
Refunding Bonds of 1975 (Water Utility Portion)
$51 ,724 per year 3/1/75 6.00 1/1/78-79 $ 103,448
$56,965 per year 6.00 1/1/80 56,965
$57,750 per year 6.00 1/1/81 57,750
$47,500 per year 6.00 1/1/82 47,500
Total Refunding Bonds of 1975 (Water Utility Portion) $ 265 ,663
Total Water and Sewer Revenue Bonds $ 835,663
Total Definitive Bonds $6 ,560,000
Special Assessment Debt Service
Funds - Temporary Bonds
r1 1975 Street 9/15/75 `7.00 9/15/78 $1 ,220,000
Water and Sewer No. 117 10/15/75 7.00 10/15/78 50,000
Water, Sewer and Storm Sewer No. 119 6/15/76 7.00 6/15/79 55,000
1976 Street 7/15/76 7.00 7/15/79 325,000
Total Special Assessment Temporary Bonds $1 ,650,000
Total bonds outstanding $8,210,000
r,
n
-12-
•
. FINANCIAL SECTION BY FUND
•
•
•
•
•
•
•
•
•
•
,.i
1
• . ..,
i
•
•
•
•
Exhibit VII f
CITY OF FRIDLEY , MINNESOTA
GENERAL FUND
BALANCE SHEET
DECEMBER 31 , 1976
General fl
ASSETS
Cash (deficit) $ (200,033) El
Investments , at cost 1 ,391 ,700
Accounts Receivable 30,977
Taxes receivable
Delinquent 74,206
Unremitted 16,787
Delinquent special
assessments receivable 6,607
Deferred special
assessments receivable 10,769
Accrued interest receivable 223,492
Inventories , at cost 11 ,705
Prepaid expenses 52,127
Total assets $1 ,618,337
LIABILITIES , RESERVE AND FUND
BALANCE
Accounts payable $ 297,001 7
Deposits payable 15,047
Due to other funds 7,389
Reserve for uncollected
taxes and special assessments 108,369
Fund balance
Appropriated 356 ,335
Unappropriated 834,196
Total liabilities ,
reserves and fund
balance $1 ,618,337
I
See accompanying Notes to Financial Statements.
EI
-13-
Exhibit VIII
•
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND
ANALYSIS OF FUND BALANCE
YEAR ENDED DECEMBER 31 , 1976
General
Fund balance
January 1 , 1976 $1 ,054,159
Adjustment of beginning
balance $ 4,997
Revenue 3,412,839
Expenditures 3,281 ,464
Fund balance
December 31 , 1976 $1 ,190,531
See accompanying Notes to Financial Statements.
r�
-14-
CITY OF FRIDLEY, MINNESOTA Exhibit IX n
GENERAL FUND II
STATEMENT OF REVENUE - YEARS ENDING DECEMBER 31 , 1975 AND 1976 (11
1976 1975
Budget Actual Actual "1
General property and other taxes
Current ad valorem $1 ,414,139 '$1 ,449,317 $1 ,330,877
Delinquent ad valorem 15,900 30,588 24,556
Tax forfeit 4,527 1 ,069 4,271
Homestead Credit 300,000 281 ,231 260,262
$1 ,734,566 $1 ,762,205 $1 ,619,966 ' I
Licenses and permits
Contractors $ 7,239 $ 7,900 $ 7,475
Business 53,612 46,225 36,281
All other 7,219 8,188 7,784
Permits 57,380 82,138 60,188 r,
$ 125,450 $ 144,451 '1/ $ 111 ,728 j
Intergovernmental revenue
C.E.T.A. $ 94,895 $ / 92,912 $ 41 ,077
ri
Civil Defense 7,500 ' 7,523 5,408
State Aid - Maintenance 25,884 29,253 23,342
Sales tax 665,350 '676,695 577,045 n
Grants 2,025 / 2,000 2,000 ' 1
Section 8 -0- ' 3,023 - -0-
$ 795,654 $ 811 ,4064/ $ 648,872
(A-7Charges for current services
General Government $ 9,922 $ / 8,874 $ 4,670
Public Safety 10,118 ' 11 ,598 15,419 n
Conservation of Health 6,218 / 12,212 7,187 II
Recreation 31 ,620 30,516 32,660
$ 57,878 $ 63,200'1/ ir 59,936
riFines and forfeitures $ 55,000 $ J 66,453^/ $ 62,902
Revenue from use of money and property n
Interest $ 57,434 $ ' 73,000 $ 58,280 it
Rents 6,450 ✓ 10,939 9,846
$ 63,884 $ J 83,939 v $ 68,126 n
Transfers from other funds II
Liquor Fund $ 85,000 $ '. 85,000 $ 75,000
Revenue Sharing Fund 229,043 '' 229,043 196,776 II
Other Funds 66,000 'i 71 ,345 63,917
$ 380,043 $ 385,388'V $ 335,693 ri
Other revenue $ 75,003 $0 95,797 $ 47,627
Prior years' fund balance $ 92,735 $ -0- _ $ -0- n
Total revenue $3,380,213 $3,412,839 $2,954,850 ,Ill
See accompanying Notes to Financial Statements. 7
-15-
rl
CITY OF FRIDLEY, MINNESOTA Exhibit X
GENERAL FUND
STATEMENT OF EXPENDITURES - YEARS ENDING DECEMBER 31 , 1975 AND 1976
HTh
1976 1975
^ Budget Actual Actual
GENERAL GOVERNMENT
Mayor and Council
Personal Services $ 42,142 $ 42,581 $ 45,651
Other Expenses 29,450 14,703 24,374
$-71 ,592 $ 57,284w ' $ 70,025
Planning Commission
Personal Services $ 14,538 $ 15,351 $ 14,062
Other Expenses 4,745 4,216 872
Capital Outlay -0- 125 -0-
$ 19,283 $ 19,692/ $ 14,934
Other Commissions
Personal Services $ 10,016 $ 4,772 $ 3,127
Other Expenses 1 ,950 3,750 816
., Capital Outlay -0- 48 500
$ 11 ,966 $ 8,570 , $ 4,443
City Manager
Personal Services $101 ,905 $ 91 ,928 $ 74,686
Other Expenses 39,850 30,471 23,737
Capital Outlay -0- 219 631
'"'°, $141 ,755 $122,618/- 99,054
Personnel
^, Personal Services $ 11 ,187 $ 11 ,866 $ 14,034
Other Expenses 3,150 __Mil 1 ,893
$ 14,337 14,717,/ $ 15,927
Legal
Personal Services $ -0- $ -0- $ 77
Other Expenses 41 ,300 39,011 38,509
,,, $ 41 ,300 $ 39,011 $ 38,509
Elections
Personal Services $ 13,222 $ 13,209 : $ 5,446
Other Expenses 2,630 2,139 2,155
$ 15,852 $ 15,348 ./ $ 7,601
., Finance
Personal Services $ 70.,822 $ 71 ,651 $ 68,410
Other Expenses 45,690 37,352 38,221
., Capital Outlay 635 1 ,608 840
$117,147 $110,611 , $10,471
Assessing
Personal Services $ 73,599 $ 80,841 $ 69,574
` 1..,, Other Expenses 8,450 6,633 7,622
Capital Outlay 584 961 872
71 $ 82,633 $ 88,435, $ 78,068_
Total General Government $515,865 $476,286 $436,032
See accompanying Notes to Financial Statements.
-16-
CITY OF FRIDLEY, MINNESOTA EXhibit X_ ^
Continued
GENERAL FUND
STATEMENT OF EXPENDITURES - YEARS ENDING DECEMBER 31 , 1975 AND 1976
1976 1975 (.."'
Budget Actual Actual
PUBLIC SAFETY 7
Police
Personal Services $760,376 $747,604 $677,700
Other Expenses 83,450 85,609 80,338
7
Capital Outlay 42,350 41 ,177 34,627
$886,176 $874,390 - $792,665
Animal Control
Personal Services $ 1 ,431 $ 103 $ 459
Other Expenses 13,600 11 ,539 11 ,520
$ 15,031 $ 11 ,642,- $ 11 ,979 7
Fire
Personal Services $205,751 $214,522 $158,590 fl
Other Expenses 32,400 27,264 33,434
Capital Outlay 5,254 2,055 3,639
1243,405 $243,841 -- $195,663 fl
Civil Defense
Personal Services $ 12,214 $ 12,219 $ 10,743 ^
Other Expenses 6,145 3,371 3,724 II
Capital Outlay 1 ,000 718 _Z AN
$ 19,359 $ 16,308 16,467_
Total Public Safety $1 ,163,971 $1 ,146,181 $1 ,016,774 (7
CIVIC CENTER n
Personal Services $ 35,855 $ 35,248 $ 30,517 71
Other Expenses 48,135 36,933 43,186
Capital Outlay 7,000 7,886 4,050
Total Civic Center $ 90,990 $ 80,067,, $ 77,753 ri
PUBLIC WORKS ri
Community Development and Health I
Personal Services $143,770 $152,922 $113,986
Other Expenses 34,355 28,752 33,654
Capital Outlay 450 720 3,386
ri
$178,575 $182,394_, $151 ,026
Engineering
ri Personal Services $ 67,617 $ 66,063 $ 61 ,316
Other Expenses 15,165 13,984 17,963
Capital Outlay 5,175 5,060 437 ri
$ 87,957 $ 85,107 S 79,716
Public Works �
Personal Services $227,901 $208,106 $210,747 I
Other Expenses 266,206 249,538 214,021
Capital Outlay 141 ,611 154,481 100,394
$635,718 $612,125 ., $525,162 -^
Total Public Works $902,250 $879,626 $755,904
See accompanying Notes to Financial Statements. I T-
-17-
Exhibit X
Continued
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND
STATEMENT OF EXPENDITURES - YEARS ENDING DECEMBER 31 , 1975 AND 1976
1976 1975
Budget Actual Actual
PARKS AND RECREATION
Naturalist
Personal Services $ 58,971 $ 50,116 $ 46,782
Other Expenses 46,125 53,088 27,725
Capital Outlay 6,300 481 2,741
-• $111 ,396 $103,685 $ 77,248
Parks
Personal Services $140,458 $138,757 $127,646
Other Expenses 76,749 84,078 75,188
Capital Outlay 121 ,190 140,625 92,091
$338,397 $363,460 $294,925
Recreation
Personal Services $208,694 $178,071 $164,712
Other Expenses 48,650 40,969 45,500
Capital Outlay -0- 13,119 597
$257,344 $232,159 $210,809
"."") Total Parks and Recreation $707,137 $699,304 $582,982
•
RESERVE FOR CONTINGENCIES
Total Reserve for Contingencies $ -0- $ -0- $ -0-
..
Total Expenditures $3,380,213 $3,281 ,464 $2,869,445 /
See accompanying Notes to Financial Statements.
JJ
-18-
1
Exhibit XI
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUNDS
BALANCE SHEETS
DECEMBER 31 , 1976
Municipal Revenue Anti-
Combined State-Aid Sharing Recession
ASSETS
Cash (deficit) $ 30 ,931 $ 29,268 $(21 ,400) $23,063
Investments , at cost 1 ,050 ,980 976,833 74,147
Accounts receivable I
Federal Government 45,868 45,868
Other 66,668 66,668
Total assets $1 ,194,447 $1 ,072 ,769 $ 98,615 $23,063 I
LIABILITIES, RESERVE AND FUND ' I
BALANCE
Reserve for construction $ 66,668 $ 66,668
Fund balance
Appropriated 1 ,021 ,880 890,117 $108,700 $23,063
Unappropriated 105 ,899 115,934 (10,085) fl
Total 1 abi 1 ties ,
reserves and fund
balance $1 ,194,447 $1 ,072,769 $ 98,615 $23,063
n
! I
See accompanying Notes to Financial Statements.
jl
n
I
-19-
11
Exhibit XII
CITY OF FRIDLEY , MINNESOTA
'-1 SPECIAL REVENUE FUNDS
ANALYSIS OF FUND BALANCES
YEAR ENDED DECEMBER 31 , 1976
ii
Municipal Revenue Youth Anti-
^ Combined State Aid Sharing Service Recession
Fund balance,
January 1 , 1976 $ 998,550 $ 874,977 $123,558 $15 $ -0-
I !
Revenue $ 560,862 $ 333,699 $204,100 $23,063
Expenditures 431 ,633 202 ,575 229,043 $15
Fund balance ,
December 31 , 1976 $1 ,127,779 $1 ,006,101 $ 98,615 $-0- $23,063
See accompanying Notes to Financial Statements.
n
r \
-20-
Exhibit XIII :711
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUNDS
STATEMENTS OF REVENUE AND EXPENDITURES
YEAR ENDED DECEMBER 31 , 1976
Municipal Revenue Youth Anti fl
Combined State-Aid Sharing Service Recession
Revenue
State-aid
construction apportionment $110,826 $110,826
Federal Grants 221 ,926 $198,863 $23,063
Interest on investments 60,329 55,092 5,237
Transfers from 1975 Street ^-,
Construction 167,781 167,781
-1
Total revenue $560,862 $333,699 $204,100 $-0- $23,063
Expenditures
Transfers to other Funds
General Fund $295,058 $ 66,000 $229,043 $15
1975 Street Construction Fund 90,386 90,386
1976 Street Construction Fund 20,440 20,440
1976 Street, principal and interest 25,749 25,749
Total expenditures $431 ,633 $202,575 $229,043 $15 $-0- ^1
Revenue over (under) expenditures $129,229 $131 ,124 ($24,943) ($15) $23,063
1
See accompanying Notes to Financial Statements
I
it
_71
-21-
' 2
Exhibit XIV
it
F4 CITY OF FRIDLEY, MINNESOTA
iTh
GENERAL DEBT SERVICE FUND
r. BALANCE SHEET - DECEMBER 31 , 1976
Civic
Center
r, Bonds
of 1965
MR ASSETS
Cash $ 779
Investments 45,930
fl Taxes receivable
Delinquent 1 ,980
Unremitted 392.
n
iI Total assets $ 49,081
RESERVE AND FUND BALANCE
Reserve for uncollected taxes receivable $ 2,372
Fund balance 46,709
Total reserve and fund balance $ 49,081
n See accompanying Notes to Financial Statements.
7
22-
.,
Exhibit XV �1
CITY OF FRIDLEY, MINNESOTA (-71
GENERAL DEBT SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES AND FUND BALANCE
YEAR ENDED DECEMBER 31 , 1976
Civic
Center
Bonds
of 1965
Fund balance, January 1 , 1976 $ 44,145
T
Revenue
Property taxes $ 37,486
Interest on investments 1 ,211
$ 38,697
Disbursements
Bonds $ 25,000
Interest 11 ,073 ^-1
Fiscal agent service charge 60
Total disbursements $ 36,133
Fund balance, December 31 , 1976 $ 46,709
See accompanying Notes to Financial Statements. .�
7
r)
T
-23-
Exhibit XVI
CITY OF FRIDLEY, MINNESOTA
CAPITAL PROJECT FUNDS
BALANCE SHEETS
DECEMBER 31 , 1976
Capital Islands North
Combined Improvement of Peace Park
•, ASSETS
Cash $ 630 $ 454 $ (437) $ 613
Investments 61 ,032 38,060 22,972
'1 Taxes receivable
Delinquent 868 868
Unremitted 395 395
Grants receivable 7,000 7,000
Due from other funds
7,389 7,389
Total assets $ 77,314 $47,166 $ 6,563 $23,585
1
LIABILITIES AND FUND BALANCE
n
Contracts payable $ 48,000 $ 48,000
Reserve for taxes 1 ,263 $ 1 ,263
r1 Fund balance
Appropriated (17,852) (41 ,437) $23,585
Unappropriated 45,903 45,903
Total liabilities and
fund balance $ 77,314 $47,166 $ 6,563 $23,585
See accompanying Notes to Financial Statements.
T
-1 -24-
Exhibit XVII fl
CITY OF FRIDLEY, MINNESOTA
CAPITAL PROJECT FUNDS
ANALYSIS OF FUND BALANCE
DECEMBER 31 , 1976
Capital Islands North
Combined Improvement of Peace Park
Fund balance, January 1 , 1976 $(47,919) $ -0- $(47,919) $ -0-
Revenue $ 80,655 $45,903 $ 7,000 $27,752
Expenditures 4,685 -0- 518 4,167 T
Fund balance, December 31 , 1976 $ 28,051 $45,903 $(41 ,437) $23,585
T
fl
T
T
T
See accompanying Notes to Financial Statements.
-25- 1
11 Exhibit XVIII
fm14
CITY OF FRIDLEY , MINNESOTA
nCAPITAL PROJECT FUNDS
STATEMENTS OF REVENUE AND EXPENDITURES
YEAR ENDED DECEMBER 31 , 1976
I1 Capital Islands North
Combined Improvement of Peace Park
fl Revenue
Property tax $ 38,060 $ 38,060
II Homestead Credit 7,389 7,389
' t Interest on investments 1 ,206 454 $ 752
Grants 34,000 $ 7,000 27,000
II Total revenue $ 80,655 $ 45,903 $ 7,000 $ 27,752
li Expenditures
17' Interest $ 180 $ 180
Other 4,505 338 $ 4,167
n Total expenditures $ 4,685 $ -0- $ 518 $ 4,167
Revenue over (under)
11 expenditures $ 75,970 $ 45,903 $ 6,482 $ 23,585
11
n
nSee accompanying Notes to Financial Statements.
El
n
jl -26-
Exhibit XIX n
(11
CITY OF FRIDLEY , MINNESOTA
LIQUOR FUND 11
BALANCE SHEET
DECEt ER 31 , 1976 n
1976 1975 I I
ASSETS I I
Current assets
Cash $ (1 ,541 ) $(23,276) n
Investments , at cost plus accrued interest 215,191 196,784 II
Accounts receivable - Anti-trust 1 ,679 1 ,736
Inventory, at cost 130,494 127,851
Contract for deed receivable 14,128 13,103
Prepaid expenses 7,318
Total current assets $359,951 $323,516 fl Property, plant and equipment, substantially all at cost
Land and buildings $195,600 $195,600
furniture, fixtures and equipment 62,926 62,826
Signs and automotive 13,194 13,194
$271 ,720 $271 ,620
Less accumulated depreciation 50,467 42,291
Net property, plant and equipment $221 ,253 $229,329
(71
Other assets
Contracts for deed receivable, less current portion $120,814 $134,943
Anti-trust accounts receivable, less current portion 3,353 5,107 I `
Total contracts for deed and anti-trust receivable $124,167 $140,050
Total assets $705,371 $692,895 II
LIABILITIES, RESERVE AND RETAINED EARNINGS II
Current liabilities I
Accounts payable .-- 1\ 1 ,693 $ 6,389 n
Accrued sales tax 5,021
Total current liability • ,714 $ 6,389
Reserve for Anti-trust -' - 4, lv $ 5,032 $ 6,844 I I
Retained earnings $693,625 $679,662 fl Total liabilities , reserve and retained earnings $705,371 $692,895
See accompanying Notes to Financial Statements.
1
-27- n
n Exhibit XX
11
CITY OF FRIDLEY, MINNESOTA
LIQUOR FUND
ANALYSIS OF CHANGES IN RETAINED EARNINGS
n YEAR ENDED DECEMBER 31
1 !
1976 1975
Retained earnings
� + January 1 $679,662 $663,723
FlNet Income 98,963 90,939
Transferred to General Fund 85,000 75,000
n Retained earnings
O December 31 $693,625 $679,662
I
11
11 See accompanying Notes to Financial Statements.
1;1,
p
p
fl -28-
n
CITY OF FRIDLEY, MINNESOTA
fell
LIQUOR FUND
STATEMENT OF INCOME O
YEAR ENDED DECEMBER 31
n
Combined Store No. 2
1976 1975 1976 1975 (1
Sales $1 ,061 ,562 $1 ,100,224 -0- -0- n
Cost of Sales 847,082 868,456 -0- -0- 11
Gross Profit $ 214,480 $ 231 ,768 -0- -0- (�
Percent of sales 20.2 21 .1 -0- -0- I �
Operating expenses $ 151 ,851 $ 169,453 -0- -0-Percent of sales 14.3 15.4 -0- -0- il
Operating profit (loss) $ 62,629 $ 62,315 -0- -0-
Percent of sales 5.9 5.7 -0- -0-
Other income $ 36,334 $ 28,624 $4,752 $5,217
Percent of sales 3.4 2.6 -0- -0-
Net income $ 98,963 $ 90,939 $4,752 $5,217
Percent of sales 9.3 8.3 -0- -0- _ n
See accompanying Notes to Financial Statements. 1 )
il
H
f1
11
11
10-t
fl
-29-
fl
1 1 Exhibit XXI
ii,)
fl
n
Store No. 3 Store No. 4
fl1976 1975 1976 1975
fl $540,235 $538,352 $521 ,327 $561 ,872
432,207 431,612 414,875 436,844
11
II $108,028 $106,740 $106,452 $125,028
20.0 19.8 20.4 22.3
fl $ 76,287 $ 89,051 $ 75,564 $ 80,402
14.1 16.5 14.5 14.3
$ 31 ,741 $ 17,689 $ 30,888 $ 44,626
ill
5.9 3.3 5.9 7.9
$ 19,171 $ 15,110 $ 12,411 $ 8,297
3.5 2.8 2.4 1.5
$ 50,912 $ 32,799 $ 43,299 $ 52,923
11 9.5 6. 1 8.3 9.4
n
11
11
fl
rl
n -30-
11
Exhibit XX I I (l
CITY OF FRIDLEY, MINNESOTA
LIQUOR FUND errl STATEMENT OF OPERATING EXPENSES
YEAR ENDED DECEMBER 31 II
Combined Store No. 3 Store No. 4 fl
1976 1975 1976 1975 1976 1975
Operating Expense II
Selling
Salary - Clerks $ 72,721 $ 75,706 $ 35,849 $ 40,401 $ 36,872 $ 35,305
Bags & Wrapping 2,590 2,738 1 ,347 1 ,439 1 ,243 1 ,299 (�
Uncollectable Checks 136 1 ,527 82 728 54 799 II
Cash Shortage 16 38 (31 ) 51 47 (13)
Other Selling Expenses -0- 1 ,586 -0- 1 ,585 -0- 1 n
$ 75,463 $ 81 ,595 $ 37,247 .$ 44,204 $ 38,216 $ 37,391 II
Percent of Sales 7.1 7.4 6.9 8.2 7.3 6.7 n
Overhead 11
Utilities $ 8,585 $ 9,288 $ 5,641 $ 6,303 $ 2,944 $ 2,985
Insurance 7,394 7,100 3,870 3,851 3,524 3,249 (�
Rent 8,057 7,932 -0- -0- 8,057 7,932 ( I
Laundry 885 872 430 381 455 491
Repair & Maintenance 1 ,864 4,486 808 2,507 1 ,056 1 ,979
Supplies 185 844 143 655 42 189
Communications 1 ,039 1 ,298 618 788 421 510 '
Alarm Service 485 725 274 397 211 328
Advertising 1 ,379 970 689 300 690 670
il Depreciation 8,175 8,731 6,885 7,184 1 ,290 1 ,547
Other Overhead Expense 2,475 2,328 1 ,429 1 ,302 1 ,046- 1 ,026
$ 40,523 $ 44,574 $ 20,787 $ 23,668 $ 19,736 $ 20,906
il
Percent of Sales 3.8 4.1 3.8 4.4 3.8 3.7
General
Management Expense $ 18,508 $ 17,177 $ 9,419 $ 8,405 $ 9,089 $ 8,772 [1
Inventory Control 6,235 5,329 3,173 2,607 3,062 2,722
Accounting 5,699 9,058 2,900 4,432 2,799 4,626 (�
Warehouse Expense 212 3,024 109 1 ,480 103 1 ,544 1I
Data Processing 4,575 7,533 2,328 3,686 2,247 3,847
Other General n
Overhead Expense 636 1 ,163 324 569 312 594 II
$ 35,865 $ 43,284 $ 18,253 $ 21 ,179 $ 17,612 $ 22,105
Percent of Sales 3.4 3.9 3.4 3.9 3.4 3.9 II
Total Operating Expense $151 ,851 $169,453 $ 76,287 $ 89,051 $ 75,564 $ 80,402
Total Percent of Sales 14.3 15.4 14.1 16.5 14.5 14.3
See accompanying Notes to Financial Statements. 11
-31-
11
11 Exhibit XXIII
CITY OF FRIDLEY , MINNESOTA
LIQUOR FUND
STATEMENT OF CHANGES IN FINANCIAL POSITION
11 YEAR ENDED DECEMBER 31 , 1976
SOURCE OF FUNDS
11
flOperations :
Net income for the year $ 98,963
tl
- Items not requiring current outlay of funds
Depreciation 8,175
Decrease in long term contracts receivable 14,129
Anti-trust receivables used 1 ,754
Total operations $123,021
I1 APPLICATION OF FUNDS
Purchase of fixed assets $ 100
17'
Transfer to General Fund 85,000
Increase in working capital 36,110
Decrease in anti-trust reserve 1 ,811
Total application of funds
$123,021
II Various Elements of Net Increase in
Working Capital :
R Cash $ 21 ,735
( 1 Investments 18,408
Accounts receivable (57)
Inventories 2,643
flContract for deed receivable 1 ,025
t Accounts payable (326)
(� Prepaid expenses (7,318)
li Total $ 36,110
11
n
11 -32-
CITY OF FRIDLEY, MINNESOTA Exhibit XXIV
WATER AND SEWER REVENUE BOND FUND
ri
BALANCE SHEET
December December rill
31 , 1976 31 , 1975
ASSETS n
Current Assets ' I
Cash (deficit) $ 10,035 $ (14,913)
Investments, at cost 1 ,316,460 1 ,112,598 II
Accounts receivable 292,207 253,780
Inventory of meters 5,235 5,520
Prepaid expenses 6,392 ,
Total current assets $1 ,623,937 $1 ,363,377
Restricted assets - Revenue Bond Accounts fl Sinking Account
Cash $ 41 ,207 $
Investments, at cost 248,459 286,308
Reserve Account
Investments 32,484
Accounts receivable Metropolitan Waste Control Commission 428,401 448,901
Total restricted assets $ 718,067 $ 767,693 fl
Property, plant and equipment, substantially all at cost
Land and improvments $ 154,590 $ 154,590 n
Buildings 737,068 737,068 II
Machinery and equipment 1 ,815,338 1 ,808,449
Other improvements • 158,508 131 ,645
$2,865,504 $2,831 ,752
Less accumulated depreciation 997,492 887,558 1
Net property, plant and equipment $1 ,868,012 $1 ,944,194
Total assets $4,210,016 $4,075,264 II
LIABILITIES, RESERVES AND RETAINED EARNINGS fl
Current liabilities
Accounts payable - Other $ 12,862 $ 4,736 n
Bonds payable within one year 101 ,724 96,607 [ I
Total current liabilities $ 114,586 $ 101 ,343
Other liabilities 733,939 $ 835,663 ' 1
Bonds payable less portion due within one year $
Deferred credit - Metropolitan Waste Control Commission 428,401 448,901
Deposits payable 708 818
Total other liabilities $1 ,163,048 $1 ,285,382 ri
Reserves
Reserve for Sinking Account debt service t $ 156,775 $ 195,275
fl
Total reserves 75
Reserve for Reserve Account $ 156,775 $ 227,759
tained earni^nos V $2,775,607 $2,460,780 eific
k‘ �b
tal li bilities, reserves and retained earnings $4,210,016 $4,075,264 ri
See accompanying Notes to Financial Statements. n
-33-
lExhibit XXV
Pim CITY OF FRIDLEY, MINNESOTA
n WATER AND SEWER REVENUE BOND FUND
STATEMENT OF CHANGES IN FINANCIAL POSITION
n YEAR ENDED DECEMBER 31 , 1976
1976 1975
Source of Funds
11 Operations:
11 Net income for the year $255,236 $235,414
Items not requiring current outlay of funds
Depreciation 114,455 110,181
11 Metropolitan Sewer Board credits used 20,500 16,935
Ii Transfer-in from Reserve & Princ. & Int. accounts 35,052
Write-off of accounts payable 1 ,733
Total operations $426,976 $362,530 `�`�.4
.),,2 ,-164°0/
II Application of Funds 4,.b
_ aleer,fr e' tiki\I-r7 5
i ),,- n.
Additions to Utility Plant in Service
(Fixed Assets Purchased) $ 38,273 $149,939
Decrease in other liabilities (Deposits Payable) 110 2,700
Payment of Long-Term Debt 5,117 61 ,607
11 Transfer to Other Funds (Principal & Interest Accounts) 97,533 107,534*
Transfer to Other Funds - Special Assessment Funds 38,626 24,130
Increase in Working Capital 247,317 16,620
II Total $426,976 $362,530
II Various Elements of Net Increase in
Working Capital
Cash and Investments $228,810 $ 68,687
11 Accounts receivable 38,427 9,096
11 Inventory (285) (578)
Prepaid Expenses (6,392) (6,393)
11 (Increase) decrease in current liabilities
Accounts payable (8,126 7,415
Current portion of long-term payable (5,117) (61 ,607)
11 Increase in working capital $247,317 $ 16,620
-)71). *Net of transfers plus interest earned, less interest expense
r , See accompanying Notes to Financial Statements
ri -34-
ri
CITY OF FRIDLEY, MINNESOTA
WATER AND SEWER UTILITIES REVENUE BOND FUND
OPERATION AND MAINTENANCE ACCOUNT
STATEMENT OF INCOME
YEAR ENDED DECEMBER 31 f1
1976 1975 I
Combined Combined n
Operating revenue II
Water sales and sewer rents $1 ,205,204 $1 ,103,656
Connection permits 7,275 3,945 (�
Sales of materials and miscellaneous service 74,484 61 ,659 ' I
Total operating revenue $1 ,286,963 $1 ,169,260
Operating expenses II
Source of supply $ 481 ,259 $ 419,239
Power and pumping 150,558 127,151
Purification 60,229 55,567
Transmission and distribution 198,159 180,510
Customer accounting and collecting 72,852 69,195
Administrative and general 30,618 39,347 (�
Depreciation 114,455 109,909 II
Total operating expenses $1 ,108,130 $1 ,000,918
Operating income $ 178,833 $ 168,342 II
Other income and (expense)
Interest income - operating accounts $ 92,185 $ 91 ,822 rl
Interest income - princ. & int. & res. accounts 20,335 20,237
Connection charges 2,620 816
Interest expense (38,500) (45,380) il Fiscal agents' charges - princ. and int. accounts (237) (423)
Net income $ 255,236 $ 235,414 n
ANALYSIS OF CHAGES IN RETAINED EARNINGS II
YEAR ENDED DECEMBER 31 n
Retained earnings January 1 $2,460,780 $2,189,631
Add
Adjustment of future principal and interest $ $ (5,116)
Net income 255,236 235,414
Current value credits used 20,500 16,935 n
Transfer-in - General Fund 5,000 5,000 II
Reduction in reserve for debt service 38,500 45,380
Write-off of accounts payable 1 ,733
Deduct
Transfer-out - special assessment fund (38,626) (24,130)
Increase (decrease) in reserve - reserve accounts 32,484 (2,334)
eil
Retained earnings, December 31 $2,775,607 $2,460,780
See accompanying Notes to Financial Statements ri
-35- n
11 Exhibit XXVI
N
1976 1975 1976 1975
Water Water Sewer Sewer
$647,403 $509,830 $557,801 $593,826
" 2,415 1 ,240 4,860 2,705
58,054 43,104 16,430 18,555
$707,872 $554,174 $579,091 $615,086
$ 1 ,499 $ 2,898 $479,760 $416,341
127,441 102,910 23,117 24,241
60,229 55,567
94,287 82,815 103,872 97,695
50,012 45,929 22,840 23,266
25,342 27,843 5,276 11 ,504
102,138 101 ,570 12,317 8,339
$460,948 $419,532 $647,182 $581 ,386
$246,924 $134,642 $(68,091 ) $ 33,700
F
F
F
11
II
-36-
Exhibit XXVII I I
rrl
CITY OF FRIDLEY, MINNESOTA
WATER AND SEWER REVENUE BOND FUND rl
ANALYSIS OF CHANGES IN SINKING AND RESERVE ACCOUNTS
YEAR ENDED DECEMBER 31 , 1976 II
Sinking Reserve ri
Combined Account Account I
Cash Balance, January 1 , 1976 $ -0- $ -0- $ -0- n
Receipts I '
Interest on investments $ 20,335 $ 18,123 $ 2,212
Transfer from Water and Sewer rl Operating Fund 120,935 120,935
Investments sold 318,792 286,308 32,484
Total receipts $460,062 $425,366 $ 34,696
[1
Disbursements
Bonds $ 96,607 $ 96,607 $
Interest 38,500 38,500
rl Fiscal agents service charge 237 237
Transfer to Operating fund (13,857) (15,032) 1 ,175
Investments purchased 297=,368 263,847 33,521
Total disbursements $418,855 $384,159 $ 34,696
Cash balance, December 31 , 1976 $ 41 ,207 $ 41 ,207 $ -0-
Investment balance, January 1 , 1976 $318,791 $286,307 32,484
Additions 297,368 263,847 33,521
rl Deductions (367,700) (301 ,695) (66,005)
Investment balance, December 31 , 1976 $248,459 $248,459 $ -0- (1
n
1 1
See accompanying Notes to Financial Statements
n
n
-37- 1 1
1
11 Exhibit XXVIII
CITY OF FRIDLEY, MINNESOTA
ri SPECIAL ASSESSMENT FUNDS
BALANCE SHEETS
flDECEMBER 31 , 1976
Special Special Special
11 Assessment Assessment Improvements
Combined Construction Debt Service Revolving
n ASSETS
flCash (deficit) $ (144,210) $173,499 $ (327,858) $ 10,149
Investments, at cost
1 Government securities 3,033,605 2,642,173 391 ,432
City of Fridley temporary bonds 1 ,650,000 1 ,650,000
IISpecial assessments receivable
Delinquent 706,413 691 ,430 14,983
n Deferred
' ) Principal 4,744,622 4,631 ,990 112,632
flTotal assets $ 9,990,430 $173,499 $ 9,287,735 $529,196
LIABILITIES, RESERVES,
IN
AND FUND BALANCE
ri Accounts and contracts payable $ 205,425 $205,425
Deposits payable 171 ,546 $171 ,546
Bonded indebtedness - Future maturities
Definitive bonds
II Principal 5,414,337 $ 5,414,337
Temporary bonds (held by City
of Fridley)
11 Principal 1 ,650,000 1 ,650,000
11 Fund Balance 2,549,122 (31 ,926) 2,223,398 357,650
Total liabilities,
1 reserves and
fund balance $ 9,990,430 $173,499 $ 9,287,735 $529,196
! t See accompanying Notes to Financial Statements.
il
n
11 -38-
Exhibit XXIX (l
CITY OF FRIDLEY, MINNESOTA
SPECIAL ASSESSMENT FUNDS
ANALYSIS OF FUND BALANCES
YEAR ENDED DECEMBER 31 , 1976 II
Fund Reduction Fund
Balance of Future Balance (�
January Expendi- Taxes December II
1 , 1976 Revenue tures Receivable 31 , 1976
FUND - —
S
rl
pecial Assessment
Construction Funds $ 543,215 $ 816,339 $1 ,391 ,480 $ -0- $ (31 ,926)
Special Assessment rl
Debt Service Funds 2,043,042 8,118,482 4,643,164 3,294,962 2,223,398
Revolving Fund 311 ,743 48,689 2,782 -0- 357,650 fl
Total $2,898,000 $8,983,510 $6,037,426 $3,294,962 $2,549,122
rl
n
(71)
n
n
See accompanying Notes to Financial Statements. n
II
n
(11-11
n
-39- n
n Exhibit XXX
CITY OF FRIDLEY, MINNESOTA
y AND DISBURSEMENTS
STATEMENTS OF CASH RECEIPTS D
n YEAR ENDED DECEMBER 31 , 1976
t1 Special Special Special
Assessment Assessment Improvements
flCombined Construction Debt Service Revolving
Cash balance, January 1 , 1976 $ 49,065 $ (37,482) $ 113,664 $ (27,117) .
flReceipts
Proceeds from sale of bonds 1 ,908,920 380,000 1 ,528,920
Special assessments 1 ,684,015 1 ,641 ,612 42,403
n Penalty and interest on
special assessments 34,412 33,780 632
Interest on investments 309,397 53,804 233,805 21 ,788
II Investments sold 4,317,942 801 ,716 3,146,416 369,810
Escrow deposits 40,893 40,893
Transfers from other funds 2,506,627 369,313 2,137,314
11 Other 8,458 8,458
Total Receipts $10,810,664 $1 ,613,291 $8,721 ,847 $ 475,526
n Disbursements
Capital outlay
ri) Transfers to other funds -
Interest during construction $ 7,210 $ 7,210
Retirement of bonds
Principal 2,983,393 $2,983,393
Interest 431 ,239 431 ,239
Investments purchased 4,851 ,384 908,139 3,551 ,813 $ 391 ,432
Transfers to other funds 2,353,567 115,191 2,195,240 43,136
11 Refund of escrow deposits 910 910
Other 376,236 371 ,770 1 ,684 2,782
ti Total disbursements $11 ,003,939 $1 ,402,310 $9,163,369 $ 438,260
Cash balance, December 31 , 1976 $ (144,210) $ 173,499 $ (327,858) $ 10,149
Ii
11
n See accompanying Notes to Financial Statements.
n
fl -40-
Exhibit XXXI II
•
CITY OF FRIDLEY, MINNESOTA r '
I LEY, MIWN OT
TRUST AND AGENCY FUNDS
INDUSTRIAL REVENUE BOND FUND
BALANCE SHEET
DECEMBER 31 , 1977 (l
ASSETS n
Cash $ (88)
Investments 4,734
Total Assets $ 4,646 11
LIABILITIES AND FUND BALANCE II
Deposits payable $ 4,646 n
Fund balance -0- 11
Total liabilities and fund balance $ 4,646
rl
STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS
YEAR ENDED DECEMBER 31 , 1976 I
Cash balance, January 1 , 1976 $ -0-
Receipts I_I
Deposits $ 5,000
Total Receipts $ 5,000 II
Disbursements
Investments Purchased $ 4,734
ri
Other Expenses 354
Total disbursements $ 5,088 fl
Cash balance, December 31 , 1976 $ (88)
(1
II
See accompanying Notes to Financial Statements
ell
n
-41-
11
flExhibit XXXII
CITY OF FRIDLEY, MINNESOTA
1 STATEMENT OF GENERAL FIXED ASSETS
DECEMBER 31 , 1976
11 General fixed assets
Land $ 1 ,215,789
Building and structures 1 ,053,998
Improvements other than buildings 22,011 ,191
Furniture, fixtures, and office equipment 200,633
Machinery and equipment 801 ,847
n Construction in progress 148,700
11 Total general fixed assets $25,432,158
Investment in general fixed assets
Special assessments $21 ,379,196
11 State-aid 198,057
1 General fund 2,398,167
Municipal liquor dispensary 15,260
(� Contributions 582,589
' t General obligation bonds 856,597
flWater and sewer utilities 2,292
11 Total investment in general fixed assets $25,432,158
fl
See accompanying Notes to Financial Statements.
n
11 -42-
Exhibit XXXIII it
n
CITY OF FRIDLEY , MINNESOTA
STATEMENT OF GENERAL LONG-TERM DEBT (�
DECEMBER 31 , 1976 ' I
n
Amount available and to be provided for the payment II
of general long-term debt
Amount available in General Debt Service Fund $ 49,081
Amount to be provided by future taxes 526,151 ( I
Total available and to be provided $575,232
General long-term debt payable
Serial bonds $310,000
Contracts - City Garage and Garage Addition 171 ,851 fi
Fund balance - Unappropriated 93,381
$575,232 II
n
See accompanying Notes to Financial Statements.
n
n
n
-43- n
II
p
^ CITY OF FRIDLEY
IJ•�l NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31 , 1976
p
Note 1 - Summary of Significant Accounting Policies
The City statements are presented on the accrual basis of accounting with
the following minor exceptions.
11 (a) General property taxes - revenue is recognized in the year
of collection ;
(b) Interest expense on general bonded indebtedness and special
assessment bonds - Interest expense is recorded as an
expenditure when paid; interest is not accrued unless fully
n matured and not paid;
` ! (c) Interest revenue on special assessments receivable - Interest
revenue is recognized in the year of anticipated collection of
► I the current principal installment;
(d) Bond and interest payments due January 1 - expenditures are
recognized when amounts are remitted to the fiscal agent
(usually in December) for payment of bonds and interest.
Investments - Investments are carried at cost which approximates market.
Investment revenue is recorded as earned and is allocated to the respective
funds.
Inventories - Inventories held by the Enterprise Funds are stated at cost.
Property and equipment - Enterprise Funds - The property and equipment of
the Enterprise Funds are stated at cost. Depreciation has been provided using
the straight line method over the estimated useful lives of the assets.
II General Long-term Debt - The general long-term liabilities , except for
Enterprise and Special Assessment Funds , are not carried as a liability of a
fund but rather are set up in a separate self-balancing group of accounts known
n as the "General Long-Term Debt Group of Accounts."
1t General Fixed Assets - General Fixed Assets purchased are recorded as expense
in funds other than Enterprise Funds at time of purchase. Such assets are
capitalized at cost in the general fixed asset group of accounts. No deprecia-
tion has been provided on general fixed assets.
Note 2 - Pending Litigation
With the exception of the below mentioned item, 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.
The City of Fridley and the City of Columbia Heights were named as co-defendants
p
n
-44-
II
CITY OF FRIDLEY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31 , 1976
in the case of John Glover Houses , Inc. The plaintiff had asked for two I I
million dollars in damages. The plaintiff alledged that these damages
resulted from work performed by the defendants at Sullivan Lake. The case n
was tried in November of 1975. The court determined the plaintiff was 1I
entitled to damages against the defendants in the amount of $281 ,500. The
City of Columbia Heights has paid the judgement. The court has ruled and
made findings that this ends all claims of the plaintiff and other persons II
who participated in the development of this land from any further claims _
against the two cities. The City of Fridley and the City of Columbia Heights
had entered into a hold-harmless agreement because the storm sewer project (�
on Sullivan Lake was wholly within the bounds of the City of Columbia Heights. � I
The City of Columbia Heights would like to have the City of Fridley participate
in the settlement for a dollar amount not to exceed $25,000. The matter has
never been resolved between the City of Columbia Heights and the City of Fridley.
Note 3 - Deferred Credit - Metropolitan Waste Control Commission - Water and
Sewer Revenue Bond Fund tl
The deferred credit of the Water and Sewer Revenue Bond Fund represents : t '
1 . The amount of $377,141 which will be repaid to the City in fl
equal annual installments , with interest, through the year
1999. This repayment is for the City's equity in sewer
interceptors which were acquired by the Commission. Repayment
will be made by credits against future sewer billings from
the Commission.
2. The amount of $51 ,260 which will be repaid, with interest, 11
through 1988. This repayment is for advances made to the
Commission during 1971 and 1972. 1 1
Note 4 - Pension Plans - All Funds
The City is currently making all pension contributions required by law. In I I
1976, the amount contributed by the City as the employer's share of pension ' I
plans was as fol 1 ows :
1 . The Fridley Firemen's Relief Association Plan covers thirty- I I
six Volunteer Firemen. The employer's contribution was
$33,773 in 1976.
2. The Fridley Police Pension Association Plan covers twenty- ( -I
seven sworn Police Officers. The employer's contributions
were $110,176 in 1976. I I
3. The Public Employees Reitrement Association - Police and
Fire Plan covers six employees. The employer's contribution
to the plan was $13,640 in 1976.
n
-45-
1
n
CITY OF FRIDLEY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31 , 1976
11
4. The Public Employees Retirement Association - Basic
P1 an covers thirty-two permanent employees and two
temporary employees. The employer's contribution in
1976 was $50,554.
n 5. The Public Employees Retirement Association - Coordinated
( � Plan covers seventy permanent employees and eight temporary
employees. The employer's contribution in 1976 was
.$46,943.
6. The Social Security - Retirement System covers the same
employees as the Coordinated Plan. The total employer
11 contribution in 1976 was $49,019.
' t For additional background information on the pension plans covering City
n
employees , see the comments made by the Finance Director in his letter to
( ! the City Manager.
Note 5 - Leases
The City leases space for Liquor Store No. 4, 6586 University Avenue
ri ) Northeast. The lease, expiring July 31 , 1979, requires annual rentals
as follows :
8/1/76 to 7/31/77 $8,232
8/1/77 to 7/31/78 8,232
8/1/78 to 7/31/79 8,532
There is no provision in the lease for the City to pay a pro rata share of
common center expense or for increases in property taxes or other expense.
Note 6 - Bonded Debt
The City had four types of bonded debt outstanding at December 31 , 1976.
There are (1 ) general obligation bonds for the Civic Center, (2) general
obligation improvement bonds , (3) general obligation unility revenue bonds ,
and (4) water and sewer revenue bonds.
1 The general obligation bonds are payable solely from general property taxes.
The general obligation improvement bonds and general obligation utility revenue
bonds are payable primarily from other sources such as , special assessments and
utility revenue, with any deficiency to be provided for by general property
taxes. The water and sewer revenue bonds are payable solely from the revenue
of the City's utilities fund.
See the supplemental information for schedules of bond and interest maturities.
11
-46-
n
n
n
n
STATISTICAL SECTION
n
n
n
n
n
n
n
n
n
n
n
n
n
(( ,y7
S�JBJEC'T: COMMENTS li.� THE ANNUAL FINANCIAL REPORT OF THE 71 i ;VIVO
CITY OF COON RAPIDS, MINNESOTA, FOR THE FISCAL /I. 1
YEAR ENDED DECEMBER 31, 1976 s, 5 ,;
! Olaf .1'
The standards used by the Special Review Committee are contained in NCGA's
GOVERNMENTAL ACCOUNTING, AUDITING AND FINANCIAL REPORTING (GAAFR) , and the
Industry Audit Guide of the American Institute of Certified Public Accountants
AUDITS OF STATE AND LOCAL GOVERNMENTAL UNITS (ASLGU) .
The recommended additions or changes to your report are as follows:
1. The reader of the Annual Financial Report should' be able to trace signifi-
cantly related items from the combined overview statements to the appro-
priate individual fund and account group statements. To facilitate this
type of tracing, the presentation of combined statements by fund type is
recommended (GAAFR, pp. 33-34, 40-41, 48, 83-84 and 91-92) where the govern-
mental unit has two or more funds of a given generic type. Total columns
should be included on the combined statements by fund type and amounts
reported Lhetein s1u u1.1 agree? :.•ith 1z tsd .amo; ?ts .repportee in the combined
overview statements. The presentation of combined statements by fund
type would enhance report readability in the case of the enterprise
funds in your report.
2. The reader of the Annual Financial Report should be provided with an over-
view understanding of the nature and magnitude of the specific revenues
and expenditures related to the regular recurring governmental activities
engaged in by the governmental unit. Such revenues and expenditures are
accounted for in the general and special revenue funds.
A Combined Statement of General Governmental Revenues is therefore recom-
mended. Such a statement should classify revenues by source and by fund
and should include all revenues reported in the general or special revenue
funds (GAAFR, p. 111) .
A Combined Statement of General Governmental Expenditures is also recom-
mended. Such a statement should classify expenditures by function and by
fund and should include all expenditures reported in the general and
special revenue funds (GAAFR, p. 112) .
3. A single combined analysis of changes in fund equity with separate columns
for each of the eight basic generic fund types in use by the governmental
unit is recommended (ASLGU, p. 106) .
\/ 4. The first page of both the Introductory Section and the entire Annual Financial '
Report should be the title page. This page should contain the title "Annual
Financial Report of the (name and location of thee governmental unit) for the
Fiscal Year (inclusive dates) ," the exact name of the department issuing the
report, and the name and title of the official heading that department
(the chief finance officer) (GAAFR, p. 107) .
5. The financial statements, supporting schedules and statistical tables should
be numbered or letter and indexed as such in the table of contents to facili-
tate easy cross-referencing.
6. The Annual Financial Report should be bound in a mant.er which will permit it
to lie flat when opened in order to facilitate easy cross-referencing by
report users.
Table 1
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND EXPENDITURE ANALYSIS
BY FUNCTION
General Public Public Parks and
Government Safety Works Recreation Naturalist Total
1967 $206,450 $ 323,901 $230,854 $138,047 - $ 899,252
1968 242,548 378,493 316,244 170,974 - 1 ,108,259
1969 255,405 496,542 368,494 200,269 - 1 ,320,710
1970 280,524 565,629 352,661 327,552 - 1 ,526,366
1971 309,232 621 ,908 418,167 341 ,533 - 1 ,690,840
1972 350,072 652,201 453,682 351 ,739 - 1 ,807,694
1973 372,942 848,448 495,006 407,943 - 2,124,339
-.---4, 1974 418,461 893,201 675,381 459,687 $ 33,473 2,480,203
1975 513,785 1 ,016,774 755,904 505,734 77,248 2,869,445
1976 556,353 1 ,146,181 879,626 595,619 103,685 3,281 ,464
I
;''\
-47-
Table 2
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND REVENUES BY SOURCE /
LAST TEN FISCAL YEARS
Charges Inter-
General Licenses, for govern- Inter- .,
Property Permits, Current mental Fund Other Total
Tax and Fines Services Revenues Transfers Revenues Revenues
1967 $ 564,880 $100,596 $13,437 $ 99,809 $140,000 $ 16,749 $ 935,471
1968 623,882 121 ,486 34,450 254,062 174,000 23,194 1 ,231 ,074
1969 720,572 109,276 24,957 263,780 212,123 39,778 1 ,370,486
1970 894,153 96,994 45,172 331 ,699 157,890 73,340 1 ,599,248
1971 955,838 120,061 56,254 395,384 239,000 67,012 1 ,833,549
1972 973,103 192,456 47,761 541 ,938 156,500 90,056 2,001 ,814
1973 1 ,087,173 157,703 57,100 502,955 263,245 93,012 2,161 ,188
1974 1 ,344,632 179,142 58,243 601 ,266 323,690 112,568 2,619,541
1975 1 ,619,966 174,630 59,936 648,872 335,693 115,753 2,954,850
1976 1 ,762 ,205 210,904 63,200 811 ,406 385,388 179,736 3,412,839
Increases in general property taxes is partially attributable to change in accounting
procedures, which now include pension contributions and other employee benefits in
the operating programs of the General Fund.
-48-
Table 3
CITY OF FRIDLEY, MINNESOTA
— TAX LEVIES AND TAX COLLECTIONS
YEARS 1967 THROUGH 1976
Collections Percentage Collection
of current of levy of prior Ratio
year's taxes collected year's taxes of total
-. Year Total during fiscal during fiscal during fiscal Total collections
collected tax levy period period period collections to tax levy
1967 $ 753,242 $ 721 ,568 95. 79 $16,160 $ 737,728 .9794: 1
1968 757,325 743,851 93.22 29 ,672 773,523 1 .0213:1
— 1969 904,756 877,150 96.95 16,349 893,499 .9875:1
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
1973 1 ,260 ,386 1 ,245,095 98.78 30,551 1 ,275,646 1 .0112:1
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. 78 32,401 1 ,845,140 .9952 :1
— -49-
CITY OF FRIDLEY, MINNESOTA
.ASSESSED VALUE AND ESTIMATED MARKET VALUE OF
ALL TAXABLE PROPERTY
(Shown by Year of Collectibility) / \
Years 1968 Through 1977
Fiscal Period
1968 1969 1970 1971
Population 27,670 28,235 29,233**** 29,636 -.
Real Property
Estimated Market Value $144,183,369 $161 ,803,359 $179,336,929 $215,276,076
Assessor's Lmt. Mar. Val . $ 44,985,211 $ 50,968,058 $ 55,773,785 $ 67,811 ,964
Assessed Value
Homestead $ 4,727,610 $ 4,901 ,847 $ 5,126,387 $ 5,271 ,642
Excess and Non-Homestead 10,372,089 12,502,701 14,063,578 18,649,587
Area-Wide Allocation --- --- --- ---
Taxable Value $ 15,099,699 $ 17,404,548 $ 19,189,965 $ 23,921 ,229
Personal Property
Estimated Market Value
Taxable Property $ 18,679,981 $ 19,435,721 $ 28,671 ,122 $ 32,262,943
Exempt Property 8,077,000 8,127,429 10,211 ,890 10,593,848
Total Market Value $ 26,756,981 S 27,563,150 $ 38,883,012 S 42,856,791
Assessor's Value
Taxable Property $ 5,828,154 $ 6,122,252 $ 8,916,719 $ 10,162,827
Exempt Property 2,520,024 2,560,140 3,175,898 3,337,062
Total Assessor's Value $ 8,348,178 $ 8,682,392 $ 12,092,617 $ 13,499,889
Taxable Value: /"`'
Taxable Property $ 2,210,004 $ 2,311 ,980 $ 3,245,428 $ 3,687,092
Exempt Property 840,008 966,800 1 ,155,935 1 ,210,692
Taxable Value $ 3,050,012 $ 3,278,780 $ 4,401 ,363 $ 4,897,784 ..,
Total Real and Personal Property
Estimated Market Value $170,940,350 $189,366,509 $218,219,941 $258,132,867
Limited Market Value $ 53,333,389 $ 59,650,450 S 67,866,402 S 81 ,311 ,853
Total Taxable Value $ 18,149,711 $ 20,683,328 $ 23,591 ,328 $ 28,819,013
Ratio of Market Value
To Limited Market Value .312: 1** .315:1** .311 :1** .315: 1**
To Taxable Value .106:1 .109: 1 .108:1 .112:1
Per Capita Valuations
Estimated Market Value $ 6,178 $ 6,707 $ 7,465 $ 8,710
Taxable Value $ 656 $ 733 $ 807 $ 972
(1 ) Beginning with the year 1968, business had the option of deleting either their
inventory or fixtures. The City was reimbursed by the State for this lost value.
Beginning in 1972, the value of inventories and fixtures was dropped. Cities were
reimbursed by the State via other State Aids.
(2) 1972 and subquent valuations reflect changes as provided for in Laws 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.
-50- ..
, ,,,,,-).... )4,..7--•
11 „.
Table 4 liLr
Ilk O� �
fl Fiscal Period
1972 1973 1974 1975 1976 1977
30,240
(1) 31 ,143
(2) 32,542 32,486
(3) 31 ,570 31 ,570***
n1269,941 ,515 $242,991,629 $270,273,456 $288,949,935 $327,232,236 $363,541 ,172
$ 5,295,419 $ 16,233,935 $ 16,582,864 $ 17,104,208 $ 17,644,329 $ 19,607,606
II 19,425,726 73,166,443 84,043,948 90,832,944 105,665,396 117,424,505
(3,140,753) (4,541 ,034) (4,812,211)
rl $ 24,721 ,145 $ 89,400,378 $100,626,812 $104,796,399 $118,768,691 $132,219,900
1.1 $ 36,379,141 $ 15,796,166 $ 17,323,420 $ 18,183,599 $ 18,073,064 $ 18,026,770
$ 36,379,141 $ 15,796,166 $ 17,323,420 $ 18,183, 599 $ 18,073,064 $ 18,026,770
II $ 11 ,313,913 $ 14,390,307 $ 15,902,900 $ 16,147,000 $ 16,103,100 $16,296,200
$ 11 ,313,913 $ 14,3.90,307 $ 15,902,900 $ 16,147,000 $ 16,103,100 $ 16,296,200
I , $ 4,080,720 $ 6,187,860 $ 6,838,247 $ 6,943,210 $ 6,924,333 $ 7,007,366
--- --- --- --- --- ___
(1 $ 4,080,720 $ 6,187,860 $ 6,838,247 $ 6,943,210 $ 6,924,333 $ 7,007,366
II
$261 ,271 ,472 $282,526,823 $311 ,738,949 $343,577,630 $385,337,077 $420,312,296
11 $ 81 ,255,428 $257,381 ,936 $286,176,356 $305,096,935 $343,335,336 $379,837,372
11 $ 28,801 ,865 $ 95,588,238 $107,465,059 $111 ,739,609 $125,693,024 $139,227,266
fl .311 :1** .911 :1* .918:1* .888:1* .891 :1* .904:1**
.110:1 .338:1 .345:1 .325:1 .326:1 .346:1
1 8,640 9,072 9,580 10,576 $ 12,206 $ 13,314
952 3,069 3,302 $ 3,440 $ 3,981 $ 4,410
Ii (3) Property values include net amount allocated pursuant to Laws 1971 , Extra Session,
Chapter 23, from Area-Wide "Pool" .
it 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 assessed value but a
taxable value based on the City of Fridley's assessed value plus the net addition
or deletion from the Metro Tax Pool .
*Source - State of Minnesota Department of Revenue
f **Source - Anoka County Assessor's Office
***No .census figure for 1977 available until April , therefore, 1976 figure is used
****United States Census
(1 -51-
ri
CITY OF FRIDLEY , MINNESOTA
eil
HISTORY OF TAX LEVIES AND MILL RATES
(Shown by Year of Tax Collectibility) II
1967 1968 1969 1970 n
Tax Levies II
General Fund $576,210 $611 ,635 $727,902 $ 909,650
P.E.R.A. Fund 15,128 32,690 60,288 90,312
rl
Fire Relief Assoc. Fund 17,125 18,150 20,683 24,057
Police Pension Assoc. Fund 17,125 18,150 20,683 44,610
General Debt Service Funds 74,592 76,700 75,200 ----
il Improvement Bonds 53,062 ---- ---- ----
Capital Improvement Fund ---- ---- ---- ----
Total $753,242 $757,325 $904,756 $1 ,068,629 II
Mill Rate fl
General Fund 33.65 33.70 35.16 38.56
P.E.R.A. Fund .88 1.81 2.91 3.83
Fire Relief Assoc. Fund 1.00 1 .00 .95 1 .02
Police Pension Assoc. Fund 1 .00 1.00 .95 1.89
General Debt Service Funds 4.36 4.22 3.63 --
Improvement Bonds 3.09 -- -- --
Capital Improvement Fund -- -- -- --
Total 43.98 41.73 43.60 45.30
fl
(2) 1972/73 and subsequent mill rates reflect changes as provided in Laws of 1971 ,
Extra Session , Chapter 31 , as amended. n
Beginning with taxes levied in 1972, collectible in 1973, Minnesota assessed ( I
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.
n
II
II
n
-52- n
Table 5
TIN-,
.,
1971 1972 1973 1974 1975 1976
,., $1 ,001 ,209 $ 923,625 $1 ,075 ,464 $1 ,178,854 $1 ,624,144 $1 ,769 ,965
47,402 59 ,566 53,954 95,895 ---- ----
27,523 17,602 13,776
55,862 57,547 49,992 75,723 ---- ----
83,590 81 ,531 67,200 39,200 38,400 37,500
---- ---- ---- 46,596
$1 ,215,586 $1 ,139,871 $1 ,260,386 $1 ,389,672 $1 ,662,544 $1 ,854,061
34.74 32.07 10.84 10.97 14.53 14.09
1 .64 2.07 .54 .89 --- ---
.96 .61 .14 --- --- ---
1 .94 2.00 .51 .71 --- ---
2.90 2.83 .68 .37 .35 .30
7 42.18 39.58 12.71 12.94 14.88 14.76
1
(3) Property values include net amount allocated pursuant to Laws 1971 , Extra
Session , Chapter 23, from Area-Wide "Pool . "
Beginning with taxes levied in 1974, collectible in 1975, the value on
7 which the City of Fridley's mill rate is calculated, is not the City assessed
value but a taxable value based on the City of Fridley's assessed value plus
the net addition or deletion from the Metro Tax Pool .
7
...,
7
-53-
I
Ti
Table 6
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF VALUATIONS AND LEVIES BY CLASSES OF PROPERTY 71
(1975 Valuation for Taxes Payable in 1976)
Ti
Assessed
Valuation Assessed Ratio of Tax Levy
Before Valuation Valuation Adjusted Based on
Contribution Contribution Contribution Adjusted Assessed Adjusted
Class of to Metro Tax to Metro Tax From Metro Assessed Value to Assessed
Property Pool Pool Tax Pool Value Total Value 7
Commercial $ 15,408,706 $2,255,993 $ $ 13,152,713 10.464 $ 194,008.92
Industrial 28,240,981 4,134,769 24,106,212 19.179 355,578.36 7
F.M.C. #85 3,831 ,429 560,961 3,270,468 2.602 48,240.99 Ti
Gas - Electric 3,083,272 451 ,423 2,631 ,849 2.094 38,821 .05
Billboards, etc. 9,632 1 ,410 8,222 .007 121 .28 7
Real Estate-P.U. 356,393 52,180 304,213 .242 4,487.29
Vacant Land 1 ,460,366 1 ,460,366 1 .162 21 ,541 .10 (7
Apartments 12,331 ,576 12,331 ,576 9.811 181 ,896.75
Residential 65,511 ,703 65,511 ,703 52.119 966,329.50
Received from
Metro Pool $2,915,702 $ 2,915,702 2.320 $ 43,035.76
TOTALS $130,234,058 $7,456,736 $2,915,702 $125,693,024 100.00 $1 ,854,061 .00 7
The assessed value for the first six classes of property shown above has been reduced for
local taxable value to 85.36% of the actual assessed value. This taxable value is then
multiplied by the applicable local mill rates. The balance of the assessed value is 7
multiplied by the Metro mill rate of (111 .65) . This money then goes into the Metro Pool .
The City of Fridley received $43,035.76 from this pool, in 1976.
71
The tax shown for Residential is the total amount received by the City. Owners of
Residential properties do not pay this full amount. Up to $325 per homestead in credit
is paid by the State to the County, and the County in turn distributes this to various 71
local governments as part of the levy request. An additional refund may be received
directly by the taxpayer depending on income and age.
71
-54- n
71
IfTable 7
' 1 CITY OF FRIDLEY, MINNESOTA
I STATEMENT OF VALUATIONS AND LEVIES BY CLASSES OF PROPERTY
.1 (1976 Valuation for Taxes Payable in 1977)
7 Assessed
Valuation Assessed Ratio of Tax Levy
Before Valuation Valuation Adjusted Based on
Contribution Contribution Contribution Adjusted Assessed Adjusted
^j Class of to Metro Tax to Metro Tax From Metro Assessed Value to Assessed
1 Property Pool Pool Tax Pool Value Total Value
-4 Commercial $ 16,977,285 $2,270,186 $ $ 14,707,099 10.563 $ 217,301 .69
i
Industrial 31 ,495,866 4,211 ,596 27,284,270 19.597 403,133.07
F.M.C. #85 3,831 ,386 512,329 3,319,057 2.384 49,040.04
Gas - Electric 3,166,907 423,476 2,743,431 1 .970 40,535.00
Billboards, etc. 9,073 1 ,213 7,860 .006 116. 13
Real Estate-P.U. 345,176 46,157 299,019 .215 4,418.09
Vacant Land 1 ,566,447 1 ,566,447 1 .125 23,144.71
.. Apartments 12,716,086 12,716,086 9.133 187,883.89
1
Residential 73,931 ,251 73,931 ,251 53.102 1 ,092,355.85
'1 Received from
Metro Pool $2,652,746 $ 2,652,746 1.905 $ 39,154.53
TOTALS $144,039,477 $7,464,957 $ 2,652,746 $139,227,266 100.00 $2,057,083.00
The assessed value for the first six classes of property shown above has been reduced for
I local taxable value to 86.6090% 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 (111 .68) . This money then goes into the Metro Pool .
The City of Fridley received $39,154.53 from this pool .
The tax shown for Residential is the total amount received by the City. Owners of
Residential properties do not pay this full amount. Up to $325 per homestead in credit
^7 is paid by the State 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 directly from the State depending on income and age.
i
f
I
-55-
Table 8 ;"l
CITY OF FRIDLEY, MINNESOTA
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS
YEARS 1967 THROUGH 1976
7
Ratio of Ratio of
7
Current Total Total
Collections Collections Outstanding
Current Current to Amount Delinquent to Current Current and 7
Fiscal Assessments Assessments Due Assessments Total Levy Delinquent
Year Due Collected (Percent) Collected Collected (Percent) Assessments
1967 $664,554 $551 ,124 85.50 $ 65,941 $617,065 95.74 $763,148 7
1968 705,501 544,615 77.20 125,016 569,631 94.92 812,821 fl
1969 683,141 563,413 82.47 158,713 722,126 105.71 744,043
1970 681 ,841 572 ,939 84.03 62,085 635,024 93.13 818,438 n
1971 638,887 606,297 88.01 133,150 739,,447 107.34 751 ,726 I
1972 746,971 634,697 84.97 119,204 753,901 100.93 727,909 n
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 7
1975 953,453 696,193 73.02 273,771 969,964 101 .73 736,530
7
1976 942 ,965 767,498 81.39 223,843 991 ,341 105. 13 706 ,413
7
1
7I
Fl
7
7
-56- 7
CITY OF FRIDLEY, MINNESOTA Table 9
f
DEBT SERVICE REQUIREMENTS - ALL FUNDS
n DECEMBER 31 , 1976
r•
Year Principal Interest Total
1977 $ 395,000 $ 317,028.79 $ 712,028. 79
1978 2,200,000 375,815.00 2,575,815.00
1979 1 ,225,000 246,935.00 1 ,471 ,935.00
1980 780,000 186,720.01 966,720.01
1981 685,000 154,005.00 839,005.00
n 1982 680,000 123,107.50 803,107.50
1983 475,000 96,790.00 571 ,790.00
1984 390,000 76,912.50 466,912.50
1985 330,000 60,300.00 390,300.00
7 1986 280,000 46,318.75 326,318.75
1987 225 ,000 34,437.50 259,437.50
1988 185,000 24,150.00 209,150.00
n 1989 85,000 17,025.00 102,025.00
1990 75,000 12,637.50 87,637.50
1991 50,000 9,262.50 59,262.50
7 1992 50,000 6,625.00 56,625.00
1993 50,000 3,975.00 53,975.00
1994 50 ,000 1 ,325.00 51 ,325.00
7 $8,210 ,000 $1 ,793,370.05 $10,003,370.05
SUMMARY OF OUTSTANDING BONDED INDEBTEDNESS
•-, Bonds Outstanding January 1 , 1976
1 Special Assessment - Permanent $4,557,730
General Debt Service 335,000
Public Utilities - Sinking 932 ,270
7 Special Assessment - Temporary 3,560,000
$9,385,000
n Bonds Issued During 1976
Special Assessment - Permanent $1 ,550,000
Special Assessment - Temporary 380,000
$1 ,930,000
7
Bonds Retired During 1976
Special Assessment - Permanent $ 693,393
7 General Debt Service 25,000
Public Utilities - Sinking 96,607
Special Assessment Temporary 2,290,000
$3,105,000
i
Balance and Purpose of Bonds Outstanding on December 31 , 1976
Special Assessment - Permanent $5,414,337
7 General Debt Service 310,000
i'M Public Utilities 835,663
Special Assessment - Temporary 1 ,650,000
7 $8,210,000
-57-
Table 10 fl
CITY OF FRIDLEY, MINNESOTA
A
DEBT SERVICE REQUIREMENTS - GENERAL OBLIGATION BONDS 71
CIVIC CENTER
DECEMBER 31 , 1976
7
Year Principal "Interest Total
1977 $ 25,000.00 $ 10,247.50 $ 35,247.50 7
1978 25,000.00 9,422.50 34,422.50
1979 30,000.00 8,500.00 38,500.00
1980 30,000.00 7,480.00 37,480.00 7
1981 30,000.00 6,460.00 36,460.00
1982 30,000.00 5,425.00 35,425.00
1983 35,000.00 4,287.50 39,287.50
7
1984 35,000.00 3,062.50 38,062.50
1985 35,000.00 1 ,827.50 36,837.50
1986 35,000.00 612.50 35,612.50
$ 310,000.00 $ 57,335.00 $ 367,335.00
n
(7
n
7
7
El
rl
-53- n
Table 11
CITY OF FRIDLEY, MINNESOTA
DEBT SERVICE REQUIREMENTS - PERMANENT BONDS
SPECIAL ASSESSMENT FUNDS
DECEMBER 31 , 1976
.,
I
Year Principal Interest Total
1977 $ 320,000 $ 165,065.25 $ 485,065.25
n 1978 803,276 220,406.61 1 ,023,682.61
1979 713,276 187,978.69 901 ,254.69
1980 643,035 158,283.22 801 ,318.22
., 1981 547,250 131 ,479.77 678,729.77
1982 552,500 106,137.57 658,637. 57
1983 390,000 83,927.50 473,927.50
1984 305,000 67,025.00 372,025.00
., 1985 245,000 53,387.50 298,387.50
1986 195,000 42 ,331.25 237,381 .25
1987 175,000 32,862.50 207,862.50
• ■ 1988 165,000 23,800.00 188,800.00
' ! 1989 85,000 17,025.00 102,025.00
1990 75,000 12,637.50 87,637.50
!''. 1991
50,000 9,262.50 59,262.50
1992 50,000 6,625.00 56,625.00
1993 50,000 3,975.00 53,975.00
1994 50,000 1 ,325.00 51 ,325.00
$5 ,414,337 $1 ,323,584.86 $6 ,737,921 .86
7
11
r, -59-
1 !
Table 12
rn
CITY OF FRIDLEY, MINNESOTA
DEBT SERVICE REQUIREMENTS - TEMPORARY BONDS
SPECIAL ASSESSMENT FUNDS
DECEMBER 31 , 1976
Year Principal Interest Total
1977 $ -0- $115,500.00 $ 115,500.00
1978 1 ,270,000 115,500.00 1 ,385,500.00
1979 380,000 24,675.00 404,675.00
$1 ,650,000 $255,675.00 $1 ,905,675.00
7]
1
71
Ti
Ti
71
T
' I
Ti
-60- Ti
Table 13
CITY OF FRIDLEY, MINNESOTA
Th
DEBT SERVICE REQUIREMENTS
PUBLIC UTILITY REVENUE & WATER IMPROVEMENT BONDS
DECEMBER 31 , 1976
Year Principal Interest Total
1977 $ 50,000.00 $ 26,216.04 $ 76,216.04
1978 101 ,724.00 30,485.89 132,209.89
1979 101 ,724.00 25,781 .31 127,505.31
1980 106,965.00 20,956.79 127,921 .79
7 1981 107,750.00 16,065.23 123,815.23
1982 97,500.00 11 ,544.93 109,044.93
1983 50,000.00 8,575.00 58,575.00
,, 1984 50,000.00 6,825.00 56,825.00
1985 50,000.00 5,075.00 55,075.00
1986 50,000.00 3,325.00 53,325.00
1987 50,000.00 1 ,575.00 51 ,575.00
1988 20,000.00 350.00 20,350.00
$ 835,663.00 $ 156,775.19 $ 992,438.19
.,
7
..
n
' 1 -61-
Table 14 ' 1
CITY OF FRIDLEY, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN rI
DECEMBER 31 , 1976
n
T
Assessed Value $ $144,039,477 T
(A) Debt Limit 6.667 Percent of Assessed Value $9,603,112
Amount of Debt Applicable to Debt Limit:
Total Bonded Debt $ 8,210,000
(B) Deductions :
General Debt Service Fund Assets $ 46,710
Special Assessment Bonds 7,064,337
Water Revenue & Improvement Bonds 835,663 $ 7,946,710 r"""i
Total Amount of Debt
Applicable to Debt Limit $ 263,290 ' I
Legal Debt Margin $9,339,822 fl
*Includes $4,812,211 negative adjustment from
"Fiscal Disparity" area wide tax base.
Note : (A) M.S.A. Section 475.53 (see following page)
Note : (B) M.S.A. Section 475. 51 (see following page)
it
J' I
r
El
-62- . rl
Table 14
Continued
CITY OF FRIDLEY, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED)
DECEMBER 31 , 1976
Note (A) :
M.S.A. Section 475.53 et seq. Limit on Net Debt
"Subdivision 1 . Generally. Except as otherwise provided in
1 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
n
"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 form 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 water-works 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) Amount of all money and the face value of all securities
held as a sinking fund for the extinguishment of obligations
other than those deductible under this subdivision.
(7) All other obligations which under the provisions of the
law authorizing their issuance are not to be included in
computing the net debt of the municipality."
-63-
71
CITY OF FRIDLEY , MINNESOTA
ell
PROPERTY TAX RATES PER $1 ,000 OF ASSESSED VALUE AND TAX LEVIES
ALL OVERLAPPING GOVERNMENTS rl
YEARS 1967 THROUGH 1976
TAX RATES
School School School School fl
District District District District
Year City No. 11 No. 13 No. 14 No. 16 County
1957 43.98 Mills 161 .18 Mills 176.89 Mills 204.79 Mills 188.08 Mills 60.63 Mills
1968 41.73 " 188.70 " 164.83 " 221 .89 " 199.67 64.86 "
1969 43.60 265.66 " 180.74 " 257.96 " 244.28 " 71 .77 "
1970 45.30 " 297.66 209.33 287.42 " 2.47.72 " 68.99 71
1971 42. 18 " 257.09 211 .08 " 273. 11 " 217.43 67.78 "
1972 39.58 173.68 " 162.66 " 160.27 " 172.87 " 73.59 "
1973 12.71 " 54.92 " 49.88 " 52.54 " 56.01 " 21 .77 "
1974 12.94 " 54.85 " 53.49 " 55.04 54.44 " 20.49 "
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 "
il
*Vocational/Technical District No. 916 included in District No. 16.
This table reflects the new method of determining assessed valuations as required
by 1971 L3gislation. This change results in an assessed valuation of approximately
35% of market value instead of approximately 11% under the previous formula. n
' 1
TAX LEVIES
1967 $ 753,146 $111 ,404 $ 900,436 $1 ,917,738 $ 372,168 $1 ,089,738 71
1968 722,334 129 ,546 826,323 2,123,757 407,085 1 ,122 ,707
1969 859 ,641 220,614 1 ,042 ,996 2,713,717 634,024 1 ,415,055
1970 1 ,016,323 250,844 1 ,240,770 3,110,580 1 ,199 ,686 1 ,547,818
1971 1 ,164,519 230 ,075 1 ,418,753 3,711 ,783 1 ,391 ,814 1 ,871 ,292
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 n
n
(-7
-64- 7
r"1
Table 15
TOTALS
Special School School School School
Districts District District District District
State Total No. 11 No. 13 No. 14 No. 16
PR
' 1 17.24 Mills 2.88 Mills 285.91 Mills 301 .62 Mills 329.52 Mills 312.81 Mills
3. 16 298.45 " 274.58 331 .64 309.42 "
P9 3.06 " 384.09 " 299.17 376.39 " 362.71 "
3.34 " 415.29 " 326.96 405.05 " 365.35 "
2.87 " 369.92 " 323.91 " 385.94 330.26 "
5.60 292.45 281.43 279.04 " 291 .64 "
2.38** " 91 .37 86.24 " 89.40 92.87 "
2.89** " 90.96 " 89.81 91 .36 90.76 "
4.77** " 101 .86 95.99 102.20 107.92 "
3.23** " 95.06 89.31 95.33 " 101 .75 "
**No Water Shed District in School District No. 11 .
Yearly
Total Percentage
Tax Levies Increase
$295.230 $ 49 ,319 $ 5,489 ,179
54,699 5,386.451 -2%
60,333 6,946,380 29%
74,934 8,440,955 22%
79,236 9,867.472 17%
161 ,290 8,167,677 -21%
204,380 8,544,576 5%
297,343 9,750,928 14%
520,369 11 ,384,383 17%
380,806 11 ,962,785 5%
..�
-65-
Table 16
7
CITY OF FRIDLEY , MINNESOTA n
COMPUTATION OF DIRECT AND OVERLAPPING
el
BONDED DEBT AND COMPARATIVE DEBT RATIOS
DECEMBER 31 , 1976
7
% of Debt Net Debt
Gross Sinking Net Applicable Applicable 7
Governmental Uni t Debt Funds Debt to City to City
Direct & Overlapping Debt
7
Direct Debt:
City of Fridley $ 8,210,000 $ 4,300,690 $ 3,909,310 100% $ 3,909,310
Overlapping Debt : 7
School Districts
No. 11 $ 42 ,081 ,780 $ 3,263,408 $ 38,818,372 1 .878 $ 729,009
No. 13 6,345,000 1 ,403,194 4,941 ,806 29.685 1 ,466,975
No. 14 6 ,633,541 794,668 5,838,873 100.00 5,838,873
No. 16 16,431 ,335 1 ,776,228 14,655,107 43.455 6,368,377
Metro Transit $ 16,950,000 $ 2,175,440 $ 14,774,560 1 .905 $ 281 ,455 7
Metro Council $ 35,540,000 $19 ,086,728 $ 16,453,272 1.775 $ 292 ,046 n
II
Anoka County $ 660,000 $ 294,298 $ 365,702 23.694 $ 86,649
Vocational/Technical fl
District No. 916 $ 8,180,000 $ 459,861 $ 7 ,720,139 2.824 $ 218,017
7
Total Overlapping
Debt $132,821 ,656 $29,253 ,825 $103,567,831 14.755% $15,281 ,401 n
Total Direct and
Overlapping Debt $141 ,031 ,656 $33,554,515 $107,477,141 14.854% $19,190,711
n
Ratio and Percentage of Net Debt, Applicable to City to Assessed Value and Market Value
Direct Overlapping 7
Total Debt Debt
Ratio of Net Debt to Assessed Value 1 :7.25 1 :35.61 1 :9.11 n
Percent of Net Debt to Assessed Value 13.78% 2.81% 10.98% II
Ratio of Net Debt to Market Value 1 :21 .90 1 :107.52 1 :27.50
Percentage of Net Debt to Market Value 4.57% .93% 3.64%
Per Capita Debt $607.88 $123.83 $484.05 7
The above debt excludes the City's share of debt applicable to the Metropolitan Council ,
Metropolitan Waste Control Commission and the North Suburban Hospital District which is ("7
paid from users ' fees.
7
-66-
Table 17
CITY OF FRIDLEY, MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
.• FOR GENERAL BONDED DEBT TO TOTAL GENERAL
GOVERNMENT EXPENDITURES
YEARS 1967 THROUGH 1976
Total Total Ratio of Debt
Fiscal Debt General Service to
Year Principal Interest Service Expenditures General Expenditures
1967 $25,000 $24,840 $ 49,840 $ 961 ,558 .0518 : 1
7 1968 45,000 23,510 68,510 1 ,2.17,856 .0563 : 1
1969 60,000 47,895 107,895 1 ,416,795 .0762 : 1
1970 60,000 45,975 105,975 1 ,687,787 .0628 : 1
7 197 90,000 48,495 138,495 1 ,846,757 .0750 : 1
1972 60,000 23,520 83,520 1 ,953,180 .0428 : 1
...'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
ml
-67-
Table 18
CITY OF FRIDLEY, MINNESOTA ("17
RATIO OF NET BONDED DEBT
TO PROPERTY VALUES AND NET BONDED DEBT PER CAPITA 11
YEARS 1967 THROUGH 1976
Net Ratio of Net Net Bonded
Fiscal Assessed Gross Less Debt Bonded Bonded Debt to Debt Per
Year Population Value Bonded Debt Service Funds Debt Assessed Value Capita
1967 26,431 $ 17,124,738 $12,805,901 $3,191 ,058 $9,614,843 .5615 : 1 $364
1968 27,670 18,149,711 10,231 ,000 3,371 ,882 6,859,118 .6704 : 1 248
1969 28,235 20,683,328 9,589,000 3,712,201 5,876,799 .2841 : 1 208
1970 29,233 23,591 ,328 9,672,000 3,913,038 5,758,962 .2441 : 1 197
1971 29,636 28,819,013 9,655,000 3,655,759 5,999,241 .2082 : 1 202
1972 30,240 28,801 ,865 9,756,000 3,870,814 5,885,186 .2043 : 1 194 fl
1973 31 ,143 95,588,238 9,852,000 3,801 ,883 6,050,117 .0633 : 1 194 r`7
1974 32,542 107,465,059 8,885,000 3,010,682 5,874,318 .0547 : 1 181 -
1975 32,486 111 ,739,609 9,385,000 3,623,017 5,761 ,983 .0516 : 1 177 --
1976 31 ,570 125,693,024 8,210,000 4,300,690 3,909,310 .0311 : 1 124
71
n
! 1
r
-68-
n
' Table 19
CITY OF FRIDLEY, MINNESOTA
INSURANCE COVERAGE
DECEMBER 31 , 1976
All risk, direct physical loss coverage
Buildings and contents (except liquor stock) - 90% Co-insurance $4,975,525
Boiler insurance 500,000
Contractor's equipment 322,385
Signs 30,000
71 Fire and extended coverage - Liquor contents 183,700
Fire and extended coverage - Liquor stock 150,000
7 Comprehensive liability, including automobiles
Bodily injury
Each person 100,000
, Each occurrence 300,000
I Property damage 100,000/300,000
Excess liability 1 ,000,000
^' Open stock burglary 10,000
Comprehensive and collision, automobile
Passenger vehicles Actual cash value
r Other vehicles Stated value
Business interruption, liquor stores 91 ,000
f1 Money and securities, inside and outside
premises, all locations 15,000
Workmen's compensation Statutory
Errors and ommission insurance 1 ,000,000
7 EMPLOYEES' SURETY BONDS
DECEMBER 31 , 1976
Surety
Name Position bond
Nasim M. Qureshi City Manager $25,000
7 Marvin C. Brunsell City Clerk 1 ,000
7 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 100,000
7 -69-
Table 20
CITY CAPITAL IMPROVEMENT FINANCING POLICY
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: II
It is the policy of the City to assess 100% of the cost of street surfacing, ri
curb and gutter improvements and storm sewer inprovements 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 except organizations are treated the
same as taxable properties. The sewer and water 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 II
improvement cost is being financed by the public utility operation.
WELLS , RESERVOIRS, PUMPING STATIONS, ETC. : fi
These improvements have been financed from the revenues of the municipal
water utility system.
ACQUISTION OF PARK LAND, CIVIC CENTER, ETC. :
It is the policy of the City to finance small park capital improvements out of fl
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 , 1976 was $310,000.
OTHER CAPITAL IMPROVEMENTS : ' I
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 level out the amount budgeted for such items , the City
appropriated funds in the amount of $45,664 for the year 1976 for the purpose
of starting a Capital Improvement Revolving Fund. The 1977 appropriation is
$45 ,000 for this fund. 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: II
It is the policy of the City to use Revenue Sharing Funds primarily for
Capital Outlay items . The general Fund has been used as the vehicle for
expenditure of Revenue Sharing monies.
-70-
_ _
CITY OF FRIDLEY, MINNESOTA Table 21
•. MISCELLANEOUS STATISTICAL INFORMATION
Date of Incorporation (Village of Fridley) July 1 , 1949
Date of Adoption of City Charter September 10, 1957
efecti ve
September 25, 1957
Form of Government Council/Manager
.1 Fiscal Year Begins January 1
Area of i t 11 Square Miles
1 Miles of Streets and i dewal ks
Streets 124.3
Paved 120.7
Other 3.6
Sidewalks 7.97
Miles of Sewer
Storm 36.24
Sanitary 97. 23
7 Miles of Water Mains 100.91
I Fi re Protecti on
Number of Stations 1
Volunteer Firemen 36
Full-Time it men 5
Police Protection
Number of Stations 1
Number of Sworn Officers 28
BUILDING PERMITS
Residential Multiple Commercial/
Year No. Value Dwellings Industrial All Other Total
7 1969 104 $ 2,427,250 $2,060 ,000 $6 ,782 ,500 $2,183,809 $13,453,559
1970 50 1 ,286,900 1 ,330,000 3,073,600 6,310,674 12 ,001 ,174
1971 96 2,380,125 5,045,486 764,400 5,824,504 14,014,515
.—i 1972 418 11 ,270,165 9,501 ,531 4,780,947 2,408,115 27,960 ,758
1973 99 2 ,507,865 -0- 4,482,184 630,014 7,620,063
1974 115 3,025,142 -0- 4,354,649 3,811 ,271 11 ,191 ,062
1975 109 3,845,673 175,850 4,683,913 1 ,337,616 10,043,052
1976 179 6,786,840 -0- 6,303,847 1 ,164,862 14,255,549
-71-
Table 21
7
Continued
Park and Recreation Areas n
Developed 245.0 Acres /i
Undeveloped 202.8 Acres
Total 447.8 Acres n
City Parks Schools Total
Number of: ri
Hockey Rinks 14 1 15
General Skating Rinks 18 0 18 ;II
Playgrounds 14 9 23
Swimming Beaches 2 0 2
Swimming Pools 0 1 1
Wading Pools 0 0 0 7
Pi cni c Grounds 1 0 1
Day Camp Sites 1 0 1
Baseball Diamonds 1 5 6
7
Softball Diamonds 18 16 34
Outdoor Basketball Courts 7 6 13
Tennis Courts 13 16 29
Horseshoe Courts 8 0 8 7
Archery Ranges 1 0 1
Permanent Playground Buildings 0 0 0
Permanent Picnic Shelters 10 0 10 7
Soccer Fields 1 0 1
Football Fields 1 9 10
Municipal Water System Source
Primary Source City of Fridley Water Plant
(Wells )--Capacity of 15 n
Million Gallons Per Day II
Secondary Source City of Minneapolis
(Mississippi River)--35
7
Million Gallons Per Day
Number of Connections December 31 , 1976 6,664 Connections
Daily Average Consumption (Gallons) 3.95 Million Gallons 7
System Capacity 15 Million Gallons
Miles of Water Mains and Laterals 100.91 Miles
Number of Fire Hydrants 936 I
Municipal Sewer System .,
Disposal--Through Metropolitan Waste Control
Commission
Number of Connections 6 ,832 Connections
Miles of Sanitary Sewer Mains and Laterals 97.23 Miles '"
Average Daily Flow (Includes Infiltration/Inflow) 3.34 A Million Gallons
(1976 Estimate)
Storm Sewers
Miles of Storm Sewer 36.24 Miles ej:1
n
-72-
7
,
Table 21
Continued
Number of Street Lights 934
Number of Traffic Signal Installations 24
Number of Other Special Signal Installations 1
Number of Civil Defense Warning Si rens 8
Permanent Employees--As of December 31 , 1976
Number
1967 95
1968 99
1969 109
1970 108
1971 110
1972 110
1973 115
1974 122
1975 129
1976 135
Elections
Registered Voters--Last General Election (1976) 16 ,379
►� Number of Votes Cast Last General Election (1976) 14,290
Percent (%) Voting 87%
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
7
-73-
n
n
n
a
n
n
n
(11
n
71.
n/