1977 Annual Financial Report ANNUAL FINANCIAL REPORT
of the
CITY OF FRIDLEY, MINNESOTA
for the year ended
DECEMBER 31 , 1977
DEPARTMENT OF FINANCE
n
MARVIN C. BRUNSELI, DIRECTOR OF FINANCE
MEMBER OF MUNICIPAL FINANCE OFFICERS' ASSOCIATION
�-� OF THE UNITED STATES AND CANADA
CITY OF FRIDLEY, MINNESOTA
TABLE OF CONTENTS
Exhibit
Number Page,
SECTION I
INTRODUCTORY SECTION
Letters of Transmittal I - XI
Auditor's Opinion XII
Certificate of Conformance XIII - XIV
Elected and Appointed Officials XV
Organization Chart XVI
SECTION II
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
Statement of Cash and Security for Deposits Exhibit IV 7
Statement of Cash Receipts and
Disbursements - All Funds Exhibit IV 7
Combined Statement of Delinquent
Taxes - Receivable by Funds Exhibit V 8
Schedule of Bonds Payable - All Funds Exhibit VI 9
SECTION III
FINANCIAL SECTION BY FUNDS
General Fund
Balance Sheet Exhibit VII 13
J ; Analysis of Fund Balance Exhibit VIII 14
Statement of Revenue - Estimated and Actual Exhibit IX 15
Statement of Expenditures -
Compared with Authorizations Exhibit X 16
fL CITY OF FRIDLEY, MINNESOTA
TABLE OF CONTENTS (CONTINUED)
Exhibit
Number Page
Special Revenue Funds
p.
Combined Balance Sheet Exhibit XI 19
Analysis of Fund Balances Exhibit XII 21
Combined Statement of Revenue and Expenditures Exhibit XIII 23
General Debt Service Fund
Balance Sheet Exhibit XIV 25
Statement of Revenues and Expenditures Exhibit XV 26
Capital Project Funds
Combined Balance Sheet Exhibit XVI 27
Analysis of Fund Balance Exhibit XVII 28
Statement of Revenue and Expenditures Exhibit XVIII 29
Enterprise Funds
r- Combined Enterprise Balance Sheet Exhibit XIX 30
Municipal Liquor Fund
Balance Sheet Exhibit XX 31
Analysis of Changes in Retained
Earnings Exhibit XXI 32
Statement of Income Exhibit XXII 33
Statement of Operating Expenses Exhibit XXIII 34
Statement of Changes in Financial
7 Position Exhibit XXIV 36
Ls
CITY OF FRIDLEY, MINNESOTA
TABLE OF CONTENTS (CONTINUED)
r.,
Exhibit
Number Page
^. Enterprise Funds (Continued)
Water and Sewer Revenue Bond Fund
r
Balance Sheet Exhibit XXV 37
Statement of Changes in Financial Position Exhibit XXVI 38
Statement of Income Exhibit XXVII 39
Analysis of Change in Sinking and
Reserve Accounts Exhibit XXVIII 41
Special Assessment Funds
Combined Balance Sheet Exhibit XXIX 42
Analysis of Fund Balances Exhibit XXX 43
Statements of Cash Receipts and Disbursements Exhibit XXXI 44
Trust and Agency Funds
Industrial Revenue Bond Fund
Statement of Cash Receipts and Disbursements Exhibit XXXII 45
General Fixed Assets
Statement of General Fixed Assets Exhibit XXXIII 46
Schedule of General Fixed Assets by Functions
and Activities Exhibit XXXIV 47
Statement of Changes in General Fixed Assets Exhibit XXXV 49
General Long Term Debt
Statement of General Long Term Debt Exhibit XXXVI 50
Notes to Financial Statements
' � Note 1 - Summary of Significant Accounting Policies -
All Funds 51
�1,
1 CITY OF FRIDLEY, MINNESOTA
TABLE OF CONTENTS (CONTINUED)
n Table
Number Page
Notes to Financial Statements (Continued)
Note 2 - Pending Litigation 51
r
Note 3 - Deferred Credit - Metropolitan Waste
Control Commission - Water and Sewer
Revenue Bond Fund 52
Note 4 - Pension Plans
Note 5 - Leases 55
Note 6 - Bonded Debt 56
SECTION IV
STATISTICAL SECTION
General Fund Expenditure Analysis by Function Table 1 57
General Fund Revenues by Source Table 2 58
Property Tax Levies and Collections Table 3 59
Assessed Value and Estimated Market Value of
All Taxable Property Table 4 60
History of Tax Levies and Mill Rates Table 5 62
Statement of Valuations and Levies by Classes of
Property - For Taxes Payable in 1978 Table 6 64
Significant Minnesota Tax Policies Table 7 65
Special Assessment Levies and Collections Table 8 66
Debt Service Requirements - All Funds Table 9 67
Debt Service Requirements - General Obligation Bonds Table 10 68
Debt Service Requirements - Permanent Special
Assessment Bonds Table 11 69
tTh
Debt Service Requirements - Temporary Special
Assessment Bonds Table 12 70
CITY OF FRIDLEY, MINNESOTA
n TABLE OF CONTENTS (CONTINUED)
,
r, Table
Number Page
M.4 Section IV - Statistical Section (Continued)
Debt Service Requirements - Public Utility Revenue
and Water Improvement Bonds Table 13 71
Computation of Legal Debt Margin Table 14 72
Property Tax Rates and Tax Levies - All Overlapping
Governmental Units Table 15 74
r' Computation of Direct and Overlapping Bonded Debt
and Comparative Debt Ratios Table 16 76
•■ Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General Government
Expenditures Table 17 77
Ratio of Net Bonded Debt to Property Values and
Net Bonded Debt Per Capita Table 18 78
Schedule of Insurance in Force Table 19 79
Principal Officials Annual Salaries and Surety
r, Bonds Table 19 79
City Capital Improvement Financing Policy Table 20 80
Miscellaneous Statistical Information Table 21 81
General Information Table 22 84
r,
; j
INTRODUCT(',RY SECTION I
April 14, 1978
Mr. Nasim M. Qureshi , City Manager
Mayor William J. Nee and Council Members
Fridley, Minnesota 55432
Dear Mr. Qureshi , Mayor Nee and Council Members:
The annual financial report for the City of Fridley for the fiscal year ended
December 31 , 1977 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.
General and Special Revenue Funds are presented on a modified accrual basis of
accounting. All other funds are presented on an accrual basis of accounting.
*"Th (See Notes to Financial Statements. )
A complete budgetary system of accounts is maintained for those funds for which
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 expended. It is the policy of
the City to control budgets at the department level . Budget adjustment between
City departments are made upon approval of a resolution by the City Council .
The City Charter provides that the City Council shall not have power to increase
the total amount of the budget, whether by insertion of new items or otherwise,
beyond the estimated 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.
The City of Fridley has computerized substantially all of its financial operation.
This has been done through the use of computer facilities and programs available
PTh
^
I
through the "LOGIS" organization.
P` 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,
the fixed asset module and the liquor inventory module.
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.
Comments
On December 31 , 1977, the General Fund showed an unappropriated fund balance of
$1 ,279,792 and an appropriated fund balance of $77,987.
The General Fund Balance Sheet as presented, reflects the City's accrued liability
for vacation benefits for all City employees. It also includes the estimated
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 unappropriate fund balance of $1 ,279,792 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 funding General Fund operating
expenditures by borrowing. The General Fund balance increased by $423,583 in
r. 1977. Of the $423,583, $170,007 was the result of actual expenditures being
under budgeted expenditures, and $268,495 was the result of actual revenues being
over the estimate. Revenue exceeded estimates in several areas, including permit
revenue, grants, interest earnings and insurance rebates used to finance fire and
police pensions. Revenue in these areas was higher than expected, and can be
expected to return to a more normal pattern in the future. For additional detail ,
see Exhibits IX and X.
In the financial statements which follow, revenues are recorded by source while
expenditures are recorded by division. Included in general property taxes in
the statement of revenue, are taxes and payments from the State Property Tax
Relief Fund for Homestead Credit.
II
`. 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 $4,040,435 in 1977 an
increase of $627,596 or 18% over the previous year. The following table repre-
sents an analysis of the major revenue sources for the General Fund for the years
1975, 1976 and 1977.
077
7
1976 1975
Revenue Source Budget Actual Actual Actual
General property taxes $1 ,935,072 $1 ,988,618 $1 ,762,205 $1 ,619,966
-„ Licenses and permits 136,834 191 ,243 144,451 111 ,728
Intergovernmental revenue 945,323 1 ,053,894 811 ,406 648,872
Charges for current services 75,240 99,755 63,200 59,936
r Fines and forfeitures 63,000 79,166 66,453 62,902
From use of money and property 69,500 95,306 83,939 68,126
Interfund transfers 388,318 384,743 385,388 335,693
Other refenue 89,988 147,710 95,797 47,627
Prior year's fund balance 68,665 -0- -0- -0-
Total $3,771 ,940 $4,040,435 $3,412,839 $2,954,850
...., Expenditures for general governmental operations totaled $3,601 ,933 in 1977 an
increase of $320,469 or 10% over 1976.
"~ Expenditure by Function
General government $ 535,966 $ 484,663 $ 476,286 $ 436,032
Public Safety 1 ,270,282 1 ,239,730 1 ,146,181 1 ,016,774
Civic Center 1.03,857 109,647 80,067 77,753
Public Works 967,451 928,742 879,626 755,904
Parks and Recreation 844,769 839,151 699,304 582,982
Reserve for contingencies 49,615 -0- -0- -0-
Total $3,771 ,940 $3,601 ,933 $3,281 ,464 $2,869,445
Levy Limitations
Minnesota Levy Limitation Law was adopted in 1972, and in general has placed a
limitation on the amount of property tax a City can levy. The amount of increase
is limited to six percent per capita per year. Since inception, various amend-
., ments 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, 1976
and 1977.
PTh
III
1977 1976 1975
Authorized levy $1 ,756,263 $1 ,704,706 $1 ,432,811
Plus allowable special levies 398,149 353,724 396,926
Total allowable levy $2,154,412 $2,058,430 $1 ,839,727
Actual levy 2,057,083 1 ,854,061 1 ,662,544
Excess not used $ 97,329 $ 204,369 $ 167,193
The City is operating within the authorized levy limitation. For the taxes
collectible in the year 1977, the City was $97,329 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.
r•
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 $4,812,211 for the taxes collectible in 1977.
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.
Except as noted below in comments for the Revenue Sharing Fund, and the
Anti-Recession Fund, the only special revenue fund for which a budget has been
adotped is the State-Aid Fund.
Municipal State-Aid Fund
Gasoline tax collections apportioned to the City by the State of Minnesota for
street construction are accounted for in this fund. Gasoline tax apportionments
used for maintenance purposes are accounted for in the General Fund. Transfers
are also made back to this fund from special assessment funds. These funds are
derived from the excess of the construction funds received from the State of
Minnesota, plus the special assessments levied, less the cost of the project.
This excess is transferred back to the Municipal State-Aid Fund where the funds
are ear marked for seal costing projects, or the City's share of sidewalk or
street improvement projects.
Revenue Sharing Fund
The Revenue Sharing Fund was established to account for the revenue received
from the Federal Government, in accordance with the State and local "Fiscal
�' IV
Assistance Act of 1972." Expenditure of these funds can be made only in
accordance with the provision of this act. The City's share of these Revenue
Sharing Funds for the year 1977 was $194,979.
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.
Anti-Recession Revenue Sharing Fund
A total of $11 ,446 in anti-recession funds were received by the City in 1977, and
have been deposited in a fund created for this purpose. In 1977, $23,063 in anti-
recession funds were transferred to the General Fund, where this amount was
appropriated and spent.
Teen Center Fund
un
A donation of $1 ,000 was received by the City in 1977. This donation was for the
explicit purpose of defraying costs relating to the operation of a teen center.
As of December 31 , 1977, the funds had not been used.
Community Development Block Grant
A $140,000 Community Development Block Grant was approved for the City of Fridley
during 1977. Of the $140,000 grant, $93,500 is scheduled for home rehabilitation
�--� grants, $25,500 for rehabilitation services and $21 ,000 for administration.
Rehabilitation service includes a tool loan program and funding of a housing
maintenance program.
GENERAL DEBT SERVICE FUNDS
Purpose
Debt Service Funds account for money devoted to the payment of interest and
I 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. The City has one General obligation issue outstanding which is
carried in this Fund. This is a $500,000 issue for the Civic Center dated
May 1 , 1965. On December 31 , 1977, $285,000 was outstanding on this bond issue.
CAPITAL PROJECT FUNDS
Purpose
Capital Project Funds receive and disburse moneys used for acquisition of
capital facilities other than those financed by Special Assessments and
"' Enterprise Funds.
V
Capital Project Fund
This fund was established to account for the receipts and disbursements of a
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 received no funds from the
grant, however, the City has been notified by the State that the grant has 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 was received in
1976 from the State of Minnesota for use on this project.
Locke Park Fund
Grants in the amount of $5,000 and $40,240 for trail systems in Locke Park have
been approved by the State, and will be accounted for in this fund.
ENTERPRISE FUNDS
Purpose
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
provately owned utility or service enterprises.
Municipal Liquor Fund
The Municipal Liquor Fund was established to account for the operation and
financing of the City owned Municipal Liquor Stores. 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 year 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 1977,
1976, 1975, 1974 and 1973.
VI
1977 1976 1975 1974 1973
Sales $1 ,160,937 $1 ,061 ,562 $1 ,100,224 $1 ,074,169 $1 ,067,330
Gross profit 228,106 214,480 231 ,768 245,843 235,182
Net profit 98,681 98,963 90,939 107,339 52,109
Transfers to the
General Fund $ 85,000 $ 85,000 $ 75,000 $ 75,000 $ -0-
^ Retained earnings of the Municipal Liquor Fund were $707,306 on December 31 , 1977,
compared to $693,625 on December 31 , 1976.
Public Utility Fund
This fund accounts for the operation and financing of the City owned sewer and
water systems. In 1970, bonds in the amount of $460,000 were issued. In 1975,
these bonds were refunded and a new bond issue substituted. On December 31 , 1977,
$213,938 of these bonds were outstanding and payable in future years.
In 1969, the fund assumed a $770,000 liability for bonds payable along with
future interest obligations of the Water No. 75 Improvement Bonds. A total
principal amount of $520,000 for this bond issue was outstanding on
December 31 , 1977. Although deferred tax levies are set forth in the resolution
for retirement of the bonds and interest, it is the intention of the City to
cancel the tax levies annually for this bond issue, and to provide the necessary
,_..� revenue from the Public Utility Fund.
The receivable from the Metropolitan Waste Control Commission of $410,533
represents the City's share of the equity in the Minneapolis Sewer System
^" which was acquired by the Board on January 1 , 1971 , and the balance of the
reserve capacity charges which were advanced to the Commission during 1971 and
1972. The reserve capacity charges of $49,556 at December 31 , 1977 will be
repaid with interest directly to the City over the next eleven 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
installments 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
improvements to the utility system, paid for or financed directly by the Water
and Sewer Revenue Bond Fund, are carried in this fund.
The Public Utility 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 , 1977 were $3,036,949, compared to $2,775,606
on December 31 , 1976.
VII
On December 12, 1977 the City Council took action to increase sewer rates by
10. 3% for all classes of customers. With this action, it is expected that
the Utility Fund will be able to operate on a self-sustaining basis for a
minimum of three years before another rate adjustment is necessary.
Shown below is a condensed summary of operations of the Water and Sewer
Revenue Bond Fund for the years 1977, 1976, 1975, 1974 and 1973.
1977 1976 1975 1974 1973
Water account
Operating revenue $650,272 $707,872 $554,174 $548,467 $413,027
Operating expenses 440,440 460,948 419,532 458,314 416,621
Operating income (loss) $209,832 $246,924 $134,642 $ 90,153 $ (3,594)
Sewer account
Operating revenue $625,924 $579,091 $615,086 $596,560 $611 ,448
Operating expenses 698,712 647,182 581 ,386 414,726 407,545
Operating income (loss) $(72,788) $(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 imporvements during the construction state of projects. The temporary bonds
usually are in force past the time the special assessment rolls are adopted by
the City Council . Permanent bonds are normally issued after the assessment
rolls have been approved by the City Council , and after the initial prepayments
of assessments have been made by property owners. This practice allows the
City to keep the amount of permanent bonds issued by the City to a minimum.
Construction in progress is shown in the General Fixed Asset Group of Accounts.
VIII
Special Improvements Revolving Fund
=4 The purpose of this fund is to provide temporary financing for small improvement
projects.
TRUST AND AGENDY 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 maintained Trust and Agency Funds for Police Pensions,
Fire Pensions and other City employee pensions. This is no longer true.
The General Fund makes remittances to the State of Minnesota for Social
Security, the Public Employees Retirement Association, the Fridley Fire
Relief Association, and the Fridley Police Relief Association. The City has
= no pension funds.
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 assessment improvement projects.
—� These costs are now shown in their respective funds.
Industrial Revenue Bond Fund
The only active Trust Fund during 1977 was the Industrial Revenue Bond Fund.
This fund was set up to account for a deposit by a private corporation in
connection with an industrial revenue bond issue. The fund has now been closed
out.
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 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
IX
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, 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 , 1977, the Long-Term Debt of the City consisted of $285,000
in Definitive Bonds issued for the purpose of financing the Civic Center, and
$133,834 in Long-Term Contracts payable, issued for the purpose of financing
the addition to the City's Municipal Garage.
CITY INVESTMENT POLICY
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 1977, interest earnings totaled $556,001 .
This is an increase of $23,781 over the $532,220 earned in the year 1976.
'^ BOND RATING
The City's current bond rating is Aa. This rating was awarded for the
�--, Improvement Bond Sale held May 16, 1977. The amount of the bond issue was
$1 ,115,000. The purpose of the bond issue was to refund temporary three-year
improvement bonds or to finance construction projects underway. The 1977
issue will be repaid entirely from special assessments. The City previously
held an A-1 bond rating, which was awarded 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,
(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.
The City is currently making all pension contributions required by law in
1977, the amount contributed by the City as the employer's share of pension
plans was as follows:
The Fridley Firemen's Relief Association Plan covers thirty-
^ five Volunteer Firemen. The employer's contribution was
., X
$38,922 in 1977
The Fridley Police Pension Association Plan covers twenty-
six sworn Police Officers. The employer's contributions
were $133,458 in 1977.
The Public Employees Retirement Association/Police and Fire
Plan covers eleven employees. The employer's contribution
to the plan was $16,929 in 1977.
The Public Employees Retirement Association/Basic Plan covers
thirty permanent employees and one temporary employee. The
employer's contribution in 1977 was $50,422.
The Public Employees Retirement Association/Coordinated Plan
covers eighty-one permanent employees and eleven temporary
employees. The employer's contribution in 1977 was $54,017.
Social Security retirement system covers the same employees
as the Coordinated Plan. The total employer contribution in
1977 was $56,463.
For additional background information on the pension plans covering City
employees, see Notes to the Financial Statements.
Independent Audit
Section 7.13 of the City Charter requires an annual audit to be made of the
books of account financial records and transactions of all administrative
departments of the City by a certified public accountant or the State Auditor's
Department of the State of Minnesota. This requirement has been complied with
and the opinion of the George M. Hansen Company, Certified Public Accountants,
is included with this report.
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.
Very truly yours,
M"arJ'Sn C. Brunsell
Assistant City Manager/Finance Director
....
XI
GEORGE M. HANSEN COMPANY
Certified Public Accountants
SOUTH PLAZA BUILDING
MINNEAPOLIS,MINNESOTA 55416
rs
ACQQ TJ gsrrS onNiQN
^' 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 31,1977, listed
in Sections II and III 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
.--� City of Fridley at December 31, 1977, and the results of operations of
such funds and the changes in financial position of the enterprise funds
for the year then ended, in conformity with generally accepted accounting
principles applied on a basis consistent with that of the preceding year.
.,d4,41,7e WadliAerl Ca"r4"7
July 14, 1978
>•• X I I
Certificate
of
Conformance
in Financial
Reporting
Presented to
Ct of tid l ) ti n
� n esota
For its Annual Financial Report
for the Fiscal Year Ended
'December 31,1976
A Certificate of Conformance in Financial Reporting is presented
by the Municipal Finance Officers Association of the United States and Canada
to governmental units whose annual financial reports are judged to
substantially conform to the financial reporting principles and
standards promulgated by the National Council on Governmental Accounting.
PA rif
five Director
we. DateOCtobec 12,1917
XIII
r`
r.
"On October 12, 1977 the Municipal Finance Officers Association
of the United States and Canada (MFOA) awarded a Certificate
of Conformance in Financial Reporting to the City of Fridley
for its Annual Financial Report for the fiscal year ended
December 31 , 1976.
In order to be awarded a Certificate of Conformance, a
governmental unit must publish a comprehensive Annual Financial
Report, whose contents include its basic financial statements
prepared in substantial conformance with generally accepted
accounting principles, an appropriate letter of transmittal and
extensive statistical section, and whose representations are
organized into an efficiently communicative format.
A Certificate of Conformance is valid for a period of three
years subject to two Annual Reviews. We believe that our current
Annual Financial Report continues to conform to Certificate of
Conformance program requirements. In order to maintain the
validity of our certificate, we are submitting this report to
MFOA for the requried Annual Review."
/''1
XIV
Pm
CITY OF FRIDLEY, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
DECEMBER 31 , 1977
ELECTED OFFICIALS
Term of office
expires January
Elected
Mayor - William J. Nee 1978
Council
Carroll A. Kukowski , Councilmember-at-Large 1978
Edward L. Hamernik, Ward I 1979
Dennis L. Schneider, Ward II 1980
Edward J. Fitzpatrick, Ward III 1979
Effective January 1978
Mayor - William J. Nee 1981
Council
Robert L. Barnette, Councilmember-at-Large 1981
Edward L. Hamernik, Ward I 1979
Dennis L. Schneider, Ward II 1980
Edward J. Fitzpatrick, Ward III 1979
APPOINTED OFFICIALS
Appointed
City Manager - Nasim M. Qureshi
Clerk-Treasurer. - Marvin C. Brunsell
Attorney - Virgil C. Herrick
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
City Assessor - Mervin Herrmann
Accounting Officer - Randy C. Fury
Liquor Stores Manager - Robert L. McGuire
Public Works Superintendent - Ralph S. Volkman
Community Development Director - Darrel G. Clark
Civil Defense Director - Robert D. Aldrich
"' XV
= _, = = = j = = = -1 = = = = = = ] —
CITY OF FRIDLEY
ORGANIZATION CHART
1 ELECTORATE
I
IMAYOR AND CITY COUNCIL I
IPlanning Commission I
I
Charter Commission CATV Commission
Community Development Commission Human Resources Commission Police Commission Board of Health
gParks & Recreation Commission Appeals Commission Housing & Redevelopment Authority
Environmental Quality Commission
CITY MANAGER
I LEGAL I I PERSONNEL(
IPURCHASINGI
NATURE INTERPRETATION PARK & RECREATION PUBLIC WORKS I FINANCE DEPARTMENT I POLICE FIRE
I
Parks Engineering I Accounting & Police Protection Fire Protection
Data Processing
Recreation Utilities Assess in & Animal Control Fire Prevention
9
Special Assessments
Band Street Maintenance Civil Defense 1
Elections V
Planning Regiommia. ,1 to( a ts,,r.rra
............
Building Inspection Liquor Stores
COMBINED FINANCIAL SECTION
{
,11
•
•
•
fl
•-•
CITY OF FRIDLEY, MINNESOTA r.
BALANCE SHEETS - ALL FUNDS '
DECEMBER 31 , 1977 II
Combined rl(Memorandum Special
Only) General Revenue
ASSETS* II
Cash (deficit) $ (223,093) $ (161 ,292) $ (2,073)
Investments, at cost
U.S. Government obligation (Exhibit III) 9,681 ,712 1 ,797,268 1 ,104,140 7
City of Fridley temporary bonds (Exhibit III) 35,000
Accounts receivable 1 ,237,787 284,685 202,032 Taxes receivable 15,869 15,243 ['I
Special assessments receivable 4,669,553 10,063
Due from other funds 5,000
Inventories, at cost 156,918 15,464
7
Prepaid expenses 55,329 53,249
Fixed assets, at cost less accumulated
depreciation 28,416,349 ri
Amount available in General Debt Service
Fund 50,815
Amount to be provided by future taxes 374,551
7
Total assets $44,475,790 $2,014,680 $1 ,304,099
LIABILITIES, RESERVES AND FUND BALANCE
ri
Liabilities
Accounts and contracts payable $ 1 ,051 ,950 $ 600,672 rl
Deposits payable 205,147 30,923
Due to other funds 5,000
Deferred income and credits 562,577 25,306
Bonded indebtedness - Future maturities
rl
Definitive bonds 6,740,000
Principal (Exhibit VI)
Temporary bonds (held by City of Fridley) 35 000 � !
Reserves
Principal (Exhibit VI 135,00.0$ 144,806
Investment in general fixed assets 26,413,582
Retained earnings 3,744,255 11
Fund balance
Appropriated 4,044,743 77,987 1,044,042
Unappropriated 1 ,528,730 1 ,279,792 115,251 fl Total liabilities, reserves
and fund balance $44,475,790 $2,014,680 $1 ,304,099
Fl
*A portion of the assets are restricted for debt retirement. See Public Utility Fund
financial statements. 71
See accompanying Notes to Financial Statements. fl-1-
rn
Exhibit I
n
1 •
General General
Debt Capital Special Long Term
Service Project Enterprise Assessment Fixed Assets Debt
$ (3,857) $ (1 ,638) $ (54,233)
n
$50,815 127,552 2,150,343 4,451 ,594
35,000
7,000 738,281 5,789
310 316
4,659,490
5,000
r, 141 ,454
2,080
1 • 2,002,767 $26,413,582
$ 50,815
rte,
374,551
$51 ,125 - $131 ,011 $5,038,287 -$9,097,640 $26,413,582 $425,366
,•, $ 48,000 $ 22,641 $ 246,803 $133,834
808 173,416
$ 310 316 536,645 5,000
733,938 5,721 ,062 285,000
35,000
$26,413,582
3,744,255
50,815 (49,460) 2,921 ,359
r*, 132,155 1 ,532
.-. $51 ,125 $131 ,011 $5,038,287 $9,097,640 $26,413,582 $425,366
r-,
-2-
II
(11
Ill
CITY OF FRIDLEY, MINNESOTA il
COMBINED STATEMENT OF REVENUE - EXPENDITURES AND ENCUMBRANCES
GENERAL AND SPECIAL REVENUE FUNDS rl
FOR THE YEAR ENDED DECEMBER 31 , 1977
it
Special Revenue Funds
General Municipal Revenue Anti t
Fund State Aid Sharing Recession I
Revenues
it
General property taxes $1 ,988,618 n
Licenses and permits 191 ,243 l
Intergovernmental revenue 1 ,053,894 $132,644 $194,979 $11 ,446
Charges for current services 99,755
Fines and forfeitures 79,166
Use of money and property 95,306 64,267 3,733 662
Transfers from other funds 384,743 50,286
Other revenue 147,710
Total $4;040,435 $247,197 $198,712 $12,108
Expenditures fl
General government $ 484,663 $ 76,000 $ 3,100
Public safety 1 ,239,730 45,918 $ 7,000 rl
Civic center 109,647 11 ,900
Engineering & inspection . 311 ,092 11 ,155 1 ,000
Highways 617,650 127,935 48,150 4,050
Naturalist 152,275 27,845 1 ,000 rl
Parks 426,256 52,437
Recreation 260,620 10,013 j�
Total $3,601 ,933 $203,935 $200,505 $23,063 ' `
It
fl-
See (..-
accompanying Notes to Financial Statements. ri-3-
rn
Exhibit II
r,
n
•
i ∎
;
Eliminations Combined Statement
Teen Community Combined and 1977 1976
Center Development Total Adjustments Total Total
n
rm
$1 ,988,618 $1 ,988,618 $1 ,762,205
191 ,243 191 ,243 144,451
$1 ,000 $3,073 1 ,397,036 1 ,397,036 1 ,144,158
99,755 99,755 63,200
r■ 79,166 79,166 66,453
163,968 163,968 144,268
435,029 $299,568 135,461 258,126
r, 147,710 147,710 95,797
$1 ,000 $3,073 $4,502,525 $299,568 $4,202,957 $3,678,658
P-1
$3,073 $ 566,836 $ 79,100 $ 487,736 $ 476,286
r% 1 ,292,648 52,918 1 ,239,730 1 ,146,181
! 121 ,547 11 ,900 109,647 80,067
323,247 12,155 311 ,092 267,501
n 797,785 52,200 745,585 748,700
181 ,120 28,845 152,275 103,685
478,693 52,437 426,256 363,460
270,633 10,013 260,620 232,159
I $ -0- $3,073 $4,032,509 $299,568 $3,732,941 $3,418,039
r.,
r
, )
r,
r.+
-4-
! I
' 1
CITY OF FRIDLEY, MINNESOTA r ,
STATEMENT OF INVESTMENTS 11
DECEMBER 31 , 1977
Interest f 1
rate Maturity Cost
Federal Intermediate Credit Bank 6.40% 7/3/78 $ 200,000 il
Federal Intermediate Credit Bank 6.81 9/1/78 300,475
Federal Intermediate Credit Bank 6.73 4/1/82 100,000
Federal National Mortgage Association 7.45 9/11/78 150,000
Federal National Mortgage Association 7.55 12/12/84 500,000 rill
Federal Land Bank Bonds 8.70 1/23/78 200,000
Federal Land Bank Bonds 6.80 10/23/79 204,282
Federal Land Bank Bonds 7.30 10/20/83 100,000
Federal Home Loan Bank Bonds 7.25 2/27/78 100,875 ' '
Federal Home Loan Bank Bonds 8.65 5/25/79 191 ,715
Federal Home Loan Bank Bonds 6.11 11/25/80 511 ,153 n
Federal Home Loan Bank Bonds 6.07 11/25/80 179,370 i
U. S. Treasury Bills 5.70 1/19/78 248,304
U. S. Treasury Bills 5.45 2/7/78 95,002
rl
U. S. Treasury Notes 7.13 11/30/79 250,294 I �
U. S. Treasury Notes 7.13 11/15/80 200,118
U. S. Treasury Notes 7.41 11/15/82 400,124
Certificate of Deposit - Northwestern National ,
Saint Paul 5.70 1/24/78 150,000 rki Certificate of Deposit - Northwestern National ,
Saint Paul 6.11 12/22/78 125,000
Certificate of Deposit - Northwestern National , 71
Saint Paul 6.25 1/24/79 150,000
Certificate of Deposit - Northwestern National ,
Saint Paul 6.16 1/24/79 400,000
rl
Certificate of Deposit - Northwestern National ,
Saint Paul 6.40 6/22/79 100,000
Certificate of Deposit - Northwestern National ,
Saint Paul 6.45 1/24/80 150,000 rl
Certificate of Deposit - Northwestern National , 6.65 5/16/80 140,000
Saint Paul rl
Certificate of Deposit - Northwestern National ,
Saint Paul 6.75 6/24/80 100,000
Certificate of Deposit - Northwestern National , 6.82 7/24/80 100,000
Saint Paul `
Certificate of Deposit - Northwestern National ,
Saint Paul 6.90 12/23/80 150,000
Certificate of Deposit - Fidelity, Minneapolis 5.63 1/18/78 200,000
Certificate of Deposit - Fidelity, Minneapolis 6.00 6/17/78 100,000 il
Certificate of Deposit - Fidelity, Minneapolis 6.00 7/24/78 100,000
Certificate of Deposit - Fidelity, Minneapolis 6.20 12/14/78 100,000
Certificate of Deposit - Fidelity, Minneapolis 6.20 12/15/78 300,000
Certificate of Deposit - Fidelity, Minneapolis 6.75 12/22/78 200,000 n"
n
-5- t l
Exhibit III
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF INVESTMENTS (CONTINUED)
DECEMBER 31 , 1977
1 Interest
rate Maturity Cost
Certificate of Deposit - Fidelity, Minneapolis 6.25% 3/9/79 $ 100,000
Certificate of Deposit - Fidelity, Minneapolis 6.30 5/5/79 100,000
Certificate of Deposit - Fidelity, Minneapolis 7.25 11/17/79 200,000
^' Certificate of Deposit - Fidelity, Minneapolis 6.60 12/21/79 400,000
Certificate of Deposit - Fidelity, Minneapolis 6.60 12/21/79 100,000
Certificate of Deposit - Fidelity, Minneapolis 6.75 1/24/80 100,000
Certificate of Deposit - Fidelity, Minneapolis 6.75 1/24/80 300,000
Certificate of Deposit - Fidelity, Minneapolis 7.00 3/11/81 200,000
Certificate of Deposit. - Minnesota Federal Savings &
Loan, New Brighton 7.50 2/23/81 50,000
Certificate of Deposit - Minnesota Federal Savings &
Loan, New Brighton 7.50 4/2/81 50,000
Certificate of Deposit - Twin City Federal Savings &
Loan, Fridley 7.00 3/31/78 100,000
Certificate of Deposit - Midwest Federal Savings&
Loan, Minneapolis 7.00 4/11/78 100,000
r., Certificate of Deposit - Northwestern Nat'l , Mpls. 6.25 12/16/81 500,000
Certificate of Deposit - Home Federal Savings &
Loan, Columbia Heights 7.00 4/11/78 100,000
Certificate of Deposit - First Federal Savings &
, ' Loan, Roseville 6.50 5/19/78 100,000
Certificate of Deposit - Northern Federal Savings &
Loan, Saint Paul 6.88 7/18/79 100,000
Certificate of Deposit - Hennepin Federal Savings &
Loan, Minneapolis 6.75 7/22/79 100,000
Short Term Government Securities - State Street Bank 5.33 Indefinite 10,000
Short Term Government Securities - State Street Bank 5.67 Indefinite 50,000
Short Term Government Securities - State Street Bank 5.76 Indefinite 150,000
Short Term Government Securities - State Street Bank 5.74 Indefinite 100,000
Short Term Government Securities - State Street Bank 5.85 Indefinite 75,000
Short Term Government Securities - State Street Bank 5.84 Indefinite 100,000
City of Fridley Temporary Bonds
,. Water, Sewer and Storm Sewer No. 121 7.00 8/1/80 35,000
Total $9,716,712
Allocated by funds
General $1 ,797,268
Special Revenue Funds 1 ,104,140
General Debt Service Fund 50,815
Capital Project Fund 127,552
r,, Enterprise Funds 2,150,343
i , Special Assessment Funds 4,486,594
I
n Total
$9,716,712
". -6-
Exhibit IV fl
CITY OF FRIDLEY, MINNESOTA n
STATEMENT OF CASH AND SECURITY FOR DEPOSITS 11
DECEMBER 31 , 1977
Face amount r__
of securities
pledged as 1.1
Cash collateral
Checking accounts - Fridley State Bank, ri
Fridley Minnesota I
General Account $ (228,593) $ 200,000*
Petty cash and change funds 5,500 f
Total cash 112222.9-9.1)
Certificates of Deposit (included in investments) i1
Northwestern National Bank, Minneapolis $ 500.000 $1 ,315,000
Fidelity Bank & Trust Company, Minneapolis 2,500,000 2,875,000*
Minnesota Federal Savings & Loan, New Brighton 100,000 *
rl
Northwestern National Bank, St. Paul 1 ,565,000 1 ,600,000*
Twin City Federal Savings & Loan, Fridley 100,000 *
First Federal Savings & Loan, Roseville 100,000 * rl Hennepin Federal Savings & Loan, Minneapolis 100,000 *
Northern Federal Savings & Loan, St. Paul 100,000 *
Midwest Federal Savings & Loan, Minneapolis 100,000 *
Home Federal Savings & Loan, Columbia Heights 100,000 * (.7
Total investments in Certificates of Deposit $5,265,000 $5,790,000
*Additional security of $40,000 for demand deposits and $100,000 for time deposits is
provided at each depository by the Federal Deposit Insurance Corporation or the
Federal Savings and Loan Insurance Corporation. it
SUMMARY STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS fl ALL FUNDS
YEAR ENDED DECEMBER 31 , 1977
Cash Cash � i
balance balance i �
January 1 , December 31 ,
Fund 1977 Receipts Disbursements 1977 n
General Fund $(200,033) $ 8,310,482 $ 8,271 ,741 $(161 ,292)
Special revenue funds 30,931 1 ,523,112 1 ,556,116 (2,073)
General debt service funds 779 85,342 86,121
Capital Projects 630 153,163 157,650 (3,857) 71
Liquor Fund (1 ,541 ) 1 ,532,481 1 ,526,655 4,285
Public Utility Fund 51 ,242 3,259,945 3,317,110 (5,923)
Special assessment funds (144,210) 9,683,331 9,593,354 (54,233)
Trust and agency funds (88) 4,926 4,838 rTh-
Total $ 2623290) $24_552 782 $24,513,585 $(223,093) 1
-7- n
Exhibit V
CITY OF FRIDLEY, MINNESOTA
COMBINED STATEMENT OF DELINQUENT
TAXES RECEIVABLE BY FUNDS
DECEMBER 31 , 1977
i .
1974 &
°"'1 Funds Exhibit Total Prior 1975 1976 1977
General VII $51 ,898 $18,346 $6,478 $8,172 $18,902
Capital Improvement XVI 655 215 440
General Debt Service Fund XIV 1 ,312 416 269 255 372
Total $53,865 $18,762 $6,747 $8,642 $19,714
P,
; I
See accompanying Notes to Financial Statements.
-8-
Exhibit VI n
CITY OF FRIDLEY, MINNESOTA
BONDS PAYABLE - ALL FUNDS
DECEMBER 31 , 1977 II
Issue Interest Maturity Principal
date rate date amount I (
Special Assessment Debt Service
Funds - Definitive Bonds rl
Improvement Bonds of 1970
January 1 , 1979 10/1/60 4.20% 1/1/79 $ 75,000 (�
January 1 , 1980 4.20 1/1/80 80,000
January 1 , 1981 4.20 1/1/81 70,000
January 1 , 1982 4.20 1/1/82 75,000 il
Total Improvement Bonds of 1960 Special Assessment Debt
Service Fund $ 300,000 it
Improvement Bonds of 1962
February 1 , 1978 5/1/62 3.80 2/1/78 $ 5,000
February 1 , 1979 3.80 2/1/79 10,000 n
$ 5,000 per year 3.80 2/1/80-82 15,000 I `
Total Improvement Bonds of 1962 Special Assessment Debt
Service Fund $ 30,0007
Improvement Bonds of 1963 n
January 1 , 1979 1/1/63 3.80 1/1/79 $ 30,000 fl
$ 35,000 per year 3.80 1/1/80-83 140,000
Total Improvement Bonds of 1963 Special Assessment Debt (�
Service Fund $ 170,000 ' I
Refunding Bonds of 1964
$105,000 per year 2/1/64 3.40 2/1/78-79 $ 210,000
February 1 , 1980 3.40 2/1/80 40,000
Total Refunding Bonds of 1964 Special Assessment Debt il Service Fund $ 250,000
Improvement Bonds of 1965 fl
February 1 , 1978 5/1/65 3.30 2/1/78 $ 30,000
$ 30,000 per year 3.40 2/1/79-80 60,000
February 1 , 1981 3.40 2/1/81 25,000
$ 25,000 per year 3.50 2/1/82-85 100,000 il
February 1 , 1986 3.50 2/1/86 20,000
Total Improvement Bonds of 1965 Special Assessment Debt
Service Fund $ 235,000 Fl
(--
fl
-9- I 1
Exhibit VI
Continued
rL..,
CITY OF FRIDLEY, MINNESOTA
BONDS PAYABLE - ALL FUNDS (CONTINUED)
7 DECEMBER 31 , 1977
Issue Interest Maturity Principal
date rate date amount
r, Special Assessment Debt Service
�
; Funds - Definitive Bonds (Continued)
i 1
Improvement Bonds of 1967
$ 40,000 per year 10/1/67 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
r,
1 Total Improvement Bonds of 1967 Special Assessment Debt
Service Fund $ 330,000
ri Improvement Bonds of 1972
II $150,000 per year 10/1/72 4.40 1/1/79-80 $ 300,000
$150,000 per year 4.60 1/1/81-82 300,000
^''1 $ 75,000 per year 4.80 1/1/83-84 150,000
$ 75,000 per year 5.00 1/1/85-86 150,000
January 1 , 1987 5.10 1/1/87 75,000
January 1 , 1988 5.20 1/1/88 75,000
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
1
Total Improvement Bonds of 1972 Special Assessment Debt
Service Fund $1 ,350,000
' ! Refunding Bonds of 1975 (Improvement Bond Portion)
January 1 , 1979 3/1/75 6.00 1/1/79 $ 98,276
r■ January 1 , 1980 6.00 1/1/80 88,035
, I 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
i ! $ 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 $ 566,061
I
., -10-
1
Exhibit VI rl
Continued I
ril
i
CITY OF FRIDLEY, MINNESOTA n
BONDS PAYABLE - ALL FUNDS (CONTINUED) fl
DECEMBER 31 , 1977
rl
Issue Interest Maturity Principal
date rate date amount
Special Assessment Debt Service rl
Funds - Definitive Bonds (Continued)
Special Assessment Fund Bonds of 1976 fl
February 1 , 1978 2/1/76 4.00% 2/1/78 $ 175,000
February 1 , 1979 4.10 2/1/79 175,000
February 1 , 1980 4.30 2/1/80 175,000 I )
February 1 , 1981 4.50 2/1/81 175,000
February 1 , 1982 4.70 2/1/82 175,000
February 1 , 1983 4.90 2/1/83 175,000 it
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 R
February 1 , 1987 5.40 2/1/87 25,000 11
February 1 , 1988 5.60 2/1/88 25,000
February 1 , 1989 5.80 2/1/89 25,000
February 1 , 1990 6.00 2/1/90 25,000
Total Special Assessment Fund Bonds of 1976 Special
Assessment Debt Service Fund $1 ,375,000 rl
Special Assessment Fund Bonds of 1977
February 1 , 1978 5/1/77 3.10 2/1/78 $ 65,000 n
February 1 , 1979 3.40 2/1/79 65,000 II
February 1 , 1980 3.70 2/1/80 110,000
February 1 , 1981 3.90 2/1/81 110,000
February 1 , 1982 4.00 2/1/82 110,000 rl
February 1 , 1983 4.20 2/1/83 110,000
February 1 , 1984 4.30 2/1/84 110,000
February 1 , 1985 4.40 2/1/85 110,000 1.1
February 1 , 1986 4.60 2/1/86 110,000 I `
February 1 , 1987 4.70 2/1/87 115,000
February 1 , 1988 4.80 2/1/88 50,000 il February 1 , 1989 4.90 2/1/89 50,000
Total Special Assessment Fund Bonds of 1977 Special
Assessment Debt Service Fund $1 ,115,000 71
Total Special Assessment Definitive Bonds $5,721 ,061
71
n
n
-11-
ri
I~ Exhibit VI
Continued
71 CITY OF FRIDLEY, MINNESOTA
BONDS PAYABLE - ALL FUNDS (CONTINUED]
r. DECEMBER 31 , 1977
Issue Interest Maturity y Principal
� ; date rate date amount
General Debt Service Funds
, ' Civic Center Bonds
February 1 , 1978 5/1/65 3.30% 2/1/78 $ 25,000
r. $30,000 per year 3.40 2/1/79-81 90,000
February 1 , 1982 3.50 2/1/82 30,000
$35,000 per year 3.50 2/1/83-86 140,000
Total Civic Center Bonds $ 285,000
Total General Debt Service Funds $ 285,000
r.
� � REVENUE BONDS
n Public Utilities Sinking Fund
Water No. 75
February 1 , 1978 5/1/65 3.30 2/1/78 $ 50,000
�
"'1 $50,000 per year 3.40 2/1/79-81 150,000
$50,000 per year 3.50 2/1/83-87 300,000
February 1 , 1988 3.50 2/1/88 20,000
Total Water No. 75 Bonds $ 520,000
Refunding Bonds of 1975 (Water Utility Portion)
January 1 , 1979 3/1/75 6.00 1/1/79 $ 51 ,724
$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) $ 213,939
Total Water and Sewer Revenue Bonds $ 733,939
Total Definitive Bonds $6,740,000
! Special Assessment Debt Service
Funds - Temporary Bonds
' , Water, Sewer and Storm Sewer No. 121 8/1/77 7.00 8/1/80 $ 35,000
7 Total Special Assessment Temporary Bonds $ 35,000
1I
Total bonds outstanding $6,775,000
.. -12-
..a
si
THE GENERAL FUND
The General Fund accounts for all revenues and
expenditures of a governmental unit which are
not accounted for in other funds, and it is
usually the largest and most important accounting
activity for state and local governments. It
normally receives a greater variety and number of
taxes and other general revenues than any other
fund. This fund has flowing into it such revenues
as general property taxes, licenses and permits,
fines and penalties, rents, charges for current
services, state-shared taxes, and interest earnings.
The fund's resources also finance a wider range of
activities than any other fund. Most of the current
operations of governmental units will be financed
jj from this fund.
Exhibit VII i)
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND
BALANCE SHEET
n
December 31 , 1977 December 31 , 1976 r,
I
ASSETS
Cash (deficit) $ (161 ,292) $ (200,033) '1
Investments 1 ,797,268 1 ,391 ,700 J1
Accounts receivable 58,967 30,977
Taxes receivable
Delinquent $ 51 ,898 $ 74,206
Unremitted 15,243 16,787
Less: Estimated uncollectible taxes (51 ,898) 15,243 (74,206) 16,787 n
Delinquent special assessments � )
receivable 6,750 6,607
Deferred special assessments
receivable 10,063 10,769 r
Less: Estimated uncollectible
special assessments (6,750) 10,063 (6,607) 10,769
Accrued interest receivable 2215,464 1 223,492 2
Inventories, at cost
Prepaid expenses 53,249 52,127
Total assets $2,014,680 $1 ,537,524 r'
LIABILITIES AND FUND BALANCE rN
Liabilities
Accounts payable $ 293,521 $ 282,647
Leave payable 307,151 270,689 il
Deposits payable 30,923 15,047
Due to other funds 7,389
Deferred income - taxes and special r1
assessments 25,306 27,556 1 (
Fund balance
Appropriated 77,987 100,000 il
Unappropriated 1 ,279,792 834,196
Total liabilities and fund balance $2,014,680 $1 ,537,524
71
1
n
it
See accompanying Notes to Financial Statements.
-13- I l
Exhibit VIII
r.,
rN
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND
ANALYSIS OF CHANGES IN FUND BALANCE
n YEAR ENDED DECEMBER 31
r"‘
December 31 , 1977 December 31 , 1976
Fund balance, January 1 $ 934,196 $1 ,054,159
Add:
Excess of revenues over
expenditures:
Revenues (Exhibit IX) $4,040,435 $3,412,839
Expenditures (Exhibit X) 3,601 ,933 438,502 3,281 ,464 131 ,375
Accounts payable cancelled 14,137 6,114
Deduct: $1 ,386,835 $1 ,191 ,648 .
Accounts receivable cancelled $ 634 $ 1 ,117
Adjustment of leave payable 28,422 29,056 256,335 257,452
rn
Fund balance, December 31 $1,357,779 $ 934,196
r-k
r1
t
r.
It
P.
See accompanying Notes to Financial Statements.
rl
-14-
Exhibit IX
T1
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND rn
STATEMENT OF REVENUE - YEARS ENDED DECEMBER 31 , 1976 AND 1977 1
1977 1976
Budget Actual Actual t
General property and other taxes ''1
Current ad valorem $1 ,589,781 $1 ,658,196 $1 ,449,317
Delinquent ad valorem 29,332 37,904 30,588
Tax forfeit 5,101 -0- 1 ,069
Homestead Credit 9 310,858 292,518 281 ,231 71
$1 ,935,072 $1 ,988,618 $1 ,762,205
Licenses and permits
71
Contractors $ 9,809 $ 9,520 $ 7,900
Business 53,245 62,485 46,225
All other 7,400 4,831 8,188
Permits 66,380 114,407 82,138 11
$ 136,834 $ 191 ,243 $ 144,451
Intergovernmental revenue ;1
C.E.T.A. $ 150,547 $ 147,757 $ 92,912
Civil Defense 6,406 10,933 7,523
State Aid - Maintenance 26,700 26,625 29,253
ri
Sales tax 752,170 752,170 676,695
Federal Grants -0- 17,085 -0-
State Grants 7,500 97,324 3,023
Local Grants 2,000 2,000 2,000 (7
$ 945,323 $1 ,053,894 $ 811 ,406
Charges for current services II
General Government $ 4,937 $ 12,418 $ 8,874
Public Safety 14,131 15,938 11 ,598
Conservation of Health 13,977 19,160 12,212
Recreation 42,195 52,239 30,516 Ti
$ 75,240 $ 99,755 $ 63,200
Fines and forfeitures $ 63,000 $ 79,166 $ 66,453 l
Revenue from use of money and property
Interest $ 59,500 $ 85,069 $ 73,000
71
Rents 10,000 10,237 10,939
$ 69,500 $ 95,306 $ 83,939
Transfers from other funds 71
Liquor Fund $ 85,000 $ 85,000 $ 85,000
Revenue Sharing Fund 200,505 200,505 229,043
Other Funds 102,813 99,238 71 ,345
$ 388,318 $ 384,743 $ 385,388 i
Other revenue $ 89,988 $ 147,710 $ 95,797 (11
Prior years' fund balance $ 68,665 $ -0- $ -0- Jam.
Total revenue $3,771 ,940 $4,040,435 $3,412,839 ; l
See accompanying Notes to Financial Statements. r.
-15- I
1 CITY OF FRIDLEY, MINNESOTA Exhibit X
GENERAL FUND
STATEMENT OF EXPENDITURES - YEARS ENDED DECEMBER 31 , 1976 AND 1977
1 `1- 1977 1976
r, Budget Actual Actual
GENERAL GOVERNMENT
Mayor and Council
'.‘ Personal Services $ 47,167 $ 43,351 $ 42,581
Other Expenses 26,350 16,650 14,703
$ 73,517 $ 60,001 $ 57,284
r.
Planning Commission
Personal Services $ 18,218 $ 16,415 $ 15,351
,,i Other Expenses 6,600 4,478 4,216
1 Capital Outlay -0- -0- 125
$ 24,818 $ 20,893 $ 19,692
Other Commissions
Personal Services $ 6,023 $ 4,453 $ 4,772
Other Expenses 3,040 7,171 3,750
l-• Capital Outlay -0- -0- 48
i $ 9,063 $ 11 ,624 $ 8,570
City Manager
Personal Services $ 98,651 $ 81 ,838 $ 91 ,928
Other Expenses 38,075 28,902 30,471
Capital Outlay 310 2,678 219
$137,036 $113,418 $122,618
Personnel
r., Personal Services $ 17,690 $ 12,319 $ 11 ,866
Other Expenses 3,050 1 ,085 2,851
$ 20,740 T13,404 $ 14,717
"n%! Legal
Personal Services $ -0- $ 261 $ -0-
Other Expenses 44,600 43,916 39,011
r'' $ 44,600 $ 44,177 $ 39,011
Elections
Personal Services $ 10,490 $ 5,996 $ 13,209
rn Other Expenses 3,040 1 ,790 2,139
Capital Outlay 200 1 ,049 -0-
$ 13,730 $ 8,835 $ 15,348
Finance
Personal Services $ 73,493 $ 80,480 $ 71 ,651
r. Other Expenses 46,551 38,645 37,352
Capital Outlay 2,200 2,848 1 ,608
$122,244 $121 ,973 $110,611
p-" Assessing
�.- Personal Services $ 80,968 $ 81 ,119 $ 80,841
(.." Other Expenses 8,550 8,802 6,633
Capital Outlay 700 417 961
'' $ 90,218 $ 90,338 $ 88,435
Total General Government $535,966 $484,663 $476,286
See accompanying Notes to Financial Statements.
-16-
CITY OF FRIDLEY, MINNESOTA Exhibit X rj
Continued '__
GENERAL FUND
STATEMENT OF EXPENDITURES - YEARS ENDED DECEMBER 31 , 1976 AND 1977 r1
1977 1976 r1
Budget Actual Actual
1
PUBLIC SAFETY
Police
Personal Services $836,495 $801 ,859 $747,604 71
Other Expenses 91 ,102 93,773 85,609
Capital Outlay 42,720 47,023 41 ,177
$970,317 $942,655 $874,390 4
Animal Control
Personal Services $ 311 $ 300 $ 103
Other Expenses 14,900 12,127 11 ,539
$ 15,211 $ 12,427 $ 11 ,642 ° '
rn
Fire
Personal Services $225,602 $227,608 $214,522 f_I
Other Expenses 37,275 36,326 27,264
Capital Outlay 3,550 2,460 2,055 --Z
$266,427 $266,394 $243,841 LI
Civil Defense
Personal Services $ 12,149 $ 13,220 $ 12,219 +
Other Expenses 5,590 4,592 3,371
Capital Outlay 588 442 718
$ 18,327 $ 18,254 $ 16,308
7
Total Public Safety $1 ,270,282 $1 ,239,730 $1 ,146,181
CIVIC CENTER Ti
Personal Services $ 36,582 $ 37,049 $ 35,248
Other Expenses 51 ,175 48,780 36,933
Capital Outlay 16,100 23,818 7,886
r_
Total Civic Center $103,857 $109,647 $ 80,067
I
PUBLIC WORKS f
Community Development
Personal Services $184,764 $183,132 $152,922 rt
Other Expenses 44,655 40,567 28,752 I i
Capital Outlay 960 1 ,201 720
$230,379 $224,900 $182,394
;'1
Engineering I
Personal Services $ 73,469 $ 68,186 $ 66,063
Other Expenses 13,850 15,759 13,984
Capital Outlay 1 ,195 2,247 5,060 I
$ 88,514 $ 86,192 $ 85,107
Public Works
Personal Services $254,023 $225,390 $208,106 fl
Other Expenses 276,535 270,084 249,538
Capital Outlay 118,000 122,176 154,481
$648,558 $617,650 $612,125 cl
Total Public Works
$967,451 $928,742 $879,626 r
See accompanying Notes to Financial Statements. I ! ,
-17- .
Exhibit X
Continued
rs!
J �
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND
STATEMENT OF EXPENDITURES - YEARS ENDED DECEMBER 31 , 1976 AND 1977
1977 1976
Budget Actual Actual
PARKS AND RECREATION
Naturalist
Personal Services $ 74,028 $ 61 ,665 $ 50,116
Other Expenses 65,325 77,702 53,088
Capital Outlay 13,000 12,908 481
$152,353 $152,275 $103,685
Parks
Personal Services $199,531 $154,362 $138,757
Other Expenses 82,225 101 ,857 84,078
Capital Outlay 138,650 170,037 140,625
$420,406 $426,256 $363,460
Recreation
Personal Services $208,015 $195,592 $178,071
Other Expenses 62,125 63,557 40,969
Capital Outlay 1 ,870 1 ,471 13,119
$272,010 $260,620 $232,159
Total Parks and Recreation $844,769 $839,151 $699,304
RESERVE FOR CONTINGENCIES
r-
Total Reserve for Contingencies $ 49,615 $ -0- $ -0-
r-t Total expenditures $3,771 ,940 $3,601 ,933 $3,281 ,464
t
r
r
r+
rn
I
r" See accompanying Notes to Financial Statements.
-18-
r
SPECIAL REVENUE FUNDS
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for
revenues derived from specific taxes or other
earmarked revenue sources. They are usually
required by statute, charter provision, or
local ordinance to finance particular functions
or activities of government.
Exhibit XI � 1
'1
1'1
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUNDS
BALANCE SHEETS
DECEMBER 31 , 1977 P"1
I
Municipal Revenue Anti- ,1
Combined State-Aid Sharing Recession
ASSETS
Cash (deficit) $ (2,073) _1
Investments, at cost 1 ,104,140 $1 ,049,363 $42,669 $12,108
Accounts receivable r�
Federal Government 57,226 54,153
State of Minnesota 144,806 144,806
Total assets $1 ,304,099 $1 ,194,169 $96,822 $12,108
RESERVE AND FUND
BALANCE
Reserve for construction $ 144,806 $ 144,806
Fund balance ! 1
Appropriated 1 ,044,042 934,112 $96,822 $12,108
Unappropriated 115,251 115,251
Total reserve
and fund
balance $1 ,304,099 $1 ,194,169 $96,822 $12,108
! l
71
See accompanying Notes to Financial Statements.
-19- r1
PI
Jt
ofn
rink
Teen Community
Center Development
$1 ,000 $(3,073)
eml
j 3,073
r', $1 ,000 $ -0-
n
$1 ,000
r
r�. $1 ,000 $ -0-
� t
r,
k
-20-
rn
Exhibit XII
I
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUNDS
ANALYSIS OF CHANGES IN FUND BALANCES
YEAR ENDED DECEMBER 31 , 1977
*1
1
Municipal Revenue Anti-
Combined State Aid Sharing Recession
i ;
Fund balance,
January 1 , 1977 $1 ,127,779 $1 ,006,101 $ 98,615 $23,063
_ i
Revenue $ 462,090 $ 247,197 $198,712 $12,108
Expenditures 430,576 203,935 200,505 23,063 i1
Fund balance, i
December 31 , 1977 $1 ,159,293 $1 ,049,363 $ 96,822 $12,108
11
iy
1 (
'1
See accompanying Notes to Financial Statements.
-21- rn.
11
II
rft
it
r.
•-1
1 �
ra
Teen Community
el Center Development
$ -0- $ -0-
r
$1 ,000 $3,073
3,073
emit
I �
$1 ,000 $ -0-
0-4
rok
f �
I (^
;
"n -22-
fl
rri
ri
CITY OF FRIDLEY, MINNESOTA ' !
SPECIAL REVENUE FUNDS
STATEMENT OF REVENUE AND EXPENDITURES t 1
YEAR ENDED DECEMBER 31 , 1977
Revenue 11
Combined Municipal State Aid Sharing
Actual Budget Actual Actual
i �
Revenue -
State-aid PI
construction apportionment $132,644 $177,494 $132,644 i
Grants and donations 210,498 $194,979
Interest on investments 68,662 30,000 64,267 3,733 r■
Transfers from 1976 Street
Construction 20,440 25,000 20,440
Transfers from 1977 Street
Construction 29,846 29,846
Prior years' fund balance 50,000
Total revenue $462,090 $282,494 $247,197 $198,712 '�
► '
Expenditures ` 1
Transfers to other funds
General Fund $299,568 $ 76,000 $ 76,000 $200,505
1975 Street Construction Fund 29,568 30,000 29,568 ?--
1976 Street Construction Fund 29,695 30,000 29,695
1977 Street Construction Fund 68,672 146,494 68,672
Other 3,073 73
Total expenditures $430,576 $282,494 $203,935 $200,505
Revenue over (under) expenditures $ 31 ,514 $ -0- $ 43,262 $ (1 ,793)
1
See accompanying Notes to Financial Statements.
T
-23-
rn
Exhibit XIII
r
r
f
P.11
n
' Anti Teen Community
• Recession Center Development
Actual Actual Actual
1 1
$ 11 ,446 $1 ,000 $3,073
rl 662
■
I
Ogic $ 12,108 $1 ,000 $3,073
r
Mg.
$ 23,063
n
■ $3,073
$ 23,063 $ -0- $3,073
it
$(10,955) $1 ,000 $ -0-
li
■
ri-
r �
-24-
; l
er,Y
DEBT SERVICE FUNDS
DEBT SERVICE FUNDS
Debt Service Funds are created to account for
% :
the payment of interest and principal on long-
term, general obligation debt other than that
-
_ ' payable from special assessments and debt issued
-0! for and serviced primarily by a governmental
enterprise.
rn
Exhibit XIV
el
n
r .
. P'1
CITY OF FRIDLEY, MINNESOTA 1
GENERAL DEBT SERVICE FUND
CIVIC CENTER BONDS OF 1965
BALANCE SHEET
YEAR ENDED DECEMBER 31 , 1977
n
Civic `J
Center
Bonds
of 1965
ASSETS n
Cash $ -0-
Investments 50,815 r"1
Taxes receivable
Delinquent $ 1,312 --
Unremitted 310
Less: Estimated uncollectible taxes (1 ,312) 310 ^
Total assets $51 ,125
r1
LIABILITY AND FUND BALANCE
Liability ;
Deferred income $ 310
Fund balance 50,815
Total liability and fund balance $51 ,125 ' 4
1' I
rl
i-1
See accompanying Notes to Financial Statements.
-25- 1.
Exhibit XV
r +
I '.
CITY OF FRIDLEY, MINNESOTA
GENERAL DEBT SERVICE FUND
ra CIVIC CENTER BONDS OF 1965
STATEMENT OF REVENUES, EXPENDITURES AND ANALYSIS OF FUND BALANCE
YEAR ENDED DECEMBER 31 , 1977
r't
Budget Actual
Fund balance, January 1 , 1977 $46,709 $46,709
► ;
Revenue
f i Property taxes $35,868 $37,936
Interest on investments 1 ,475
Total revenue $35,868 $39,411
Expenditures
Bonds $25,000 $25,000
, I Interest 10,247 10,247
Fiscal agent service charge 60 58
Contingencies 561
! Total expenditures $35,868 $35,305
Fund balance, December 31 , 1977 $46,709 $50,815
■
n
1Th
See accompanying Notes to Financial Statements.
n -26-
/ �
CAPITAL PROJECTS FUNDS
CAPITAL PROJECTS FUNDS
Capital Projects Funds are created to account for
all resources used for the acquisition of capital
facilities by a governmental unit except those
j financed by special assessment and enterprise funds.
i _
k
•
1
Exhibit XVI r1
n
CITY OF FRIDLEY, MINNESOTA ft
CAPITAL PROJECT FUNDS
BALANCE SHEETS
DECEMBER 31 , 1977 ri
Capital Islands North Locke 1
Combined Improvement of Peace Park Park
ASSETS fl
Cash (deficit) $ (3,857) $ (8,198) $4,603 $(262)
Investments 127,552 $127,552 r'1
Taxes receivable t I
Delinquent $ 655 $ 655
Unremitted 316 316
Less: Uncollectible r'1
taxes (655) 316 (655) 316
Grants receivable 7,000 7,000
Total assets $131 ,011 $127,868 $ (1 ,198) $4,603 $(262)
LIABILITIES AND FUND BALANCE fl
Liabilities
Contracts payable $ 48,000 $ 48,000
Deferred revenue 316 $ 316 I1
Fund balance
Appropriated (49,460) (49,198) $(262) n
Unappropriated 132,155 127,552 $4,603
Total liabilities and
fund balance $131 ,011 $127,868 $ (1 ,198) $4,603 $(262) 71
n
it
71
r,
I
See accompanying Notes to Financial Statements.
-27- t
n
Exhibit XVII
1Th
n
ri
pl
P%
CITY OF FRIDLEY, MINNESOTA
CAPITAL PROJECT FUNDS
ANALYSIS OF CHANGES IN FUND BALANCE
YEAR ENDED DECEMBER 31 , 1977
Capital Islands North Locke
Combined Improvement of Peace Park Park
l Fund balance
January 1 , 1977 $28,051 $ 45,903 $(41 ,437) $23,585 $ -0-
r��
Revenue $83,605 $ 81 ,649 $ 25 $ 1 ,931
r` Expenditures 28,961 7,786 20,913 262
I 1
Fund balance
December 31 , 1977 $82,695 $127,552 $(49,198) $ 4,603 $(262)
ii
r1
i
rn
ii
i
r,— See accompanying Notes to Financial Statements.
n -28-
Exhibit XVIII ) 1
J' l
i1
Fl
CITY OF FRIDLEY, MINNESOTA fl
I
CAPITAL PROJECT FUNDS
STATEMENTS OF REVENUE AND EXPENDITURES
YEAR ENDED DECEMBER 31 , 1977 rl
Capital Islands North Locke fl
Combined Improvement of Peace Park Park
Revenue
C
Property tax $39,326 $39,326
Homestead Credit 6,794 6,794 n
Interest on investments 5,041 4,094 $ 947
Transfers 31 ,435 31 ,435
Other 1 ,009 $ 25 984
Total revenue $83,605 $81 ,649 $ 25 $ 1 ,931 $ -0-
n
Expenditures ► �
Interest $ 1 ,180 $ 1 ,180
Other 27,781 6,606 $ 20,913 $ 262 II
Total expenditures $28,961 $ -0- $ 7,786 $ 20,913 $ 262
mn
it
Revenue over (under)
expenditures $54,644 $81 ,649 $(7,761 ) $(18,982) $(262)
n
PI
it
1
r
See accompanying Notes to Financial Statements. n
-29-
ENTERPRISE FUNDS
Enterprise funds are established to account for
the financing of self-supporting activities of
governmental units which render services on a user
charge basis to the general public. The most
universal type of government enterprise is the
public utility engaged in the provision of such
`� - basic services as water, electricity, and natural
gas. Sanitary sewer systems financed by user
charges have also assumed the status of public
utility operations in many urban areas, and many
cities have combined water and sewer systems under
the same management. Another type of government
enterprise in Minnesota is the Municipal Liquor
Operation.
n
Exhibit XIX
n
71 CITY OF FRIDLEY, MINNESOTA
ENTERPRISE FUNDS
BALANCE SHEET
n DECEMBER 31 , 1977
►4 Public
Liquor Utility
Combined Fund Fund
pl
ASSETS*
Cash $ (1 ,638) $ 4,285 $ (5,923)
71 Investments 2,150,343 311 ,060 1 ,839,283
Accounts receivable 738,281 55,598 682,683
Due from other funds 5,000 5,000
n Inventories, at cost 141 ,454 138,083 3,371
Prepaid expenses 2,080 12 2,068
Fixed assets, at cost, less depreciation 2,002,767 216,496 1 ,786,271
Total assets $5,038,287 $725,534 $4,312,753
LIABILITIES AND RETAINED EARNINGS
Liabilities
Accounts and contracts payable $ 22,641 $ 15,234 $ 7,407
Deposits payable 808 808
Deferred income 413,527 2,994 410,533
Bonds payable 733,938 733,938
` Deferred credit 123,118 123,118
Total liabilities $1 ,294,032 $ 18,228 $1 ,275,804
^ Retained earnings
Invested in property, plant and equipment $2,002,767 $216,496 $1 ,786,271
Unappropriated 1 ,741 ,488 490,810 1 ,250,678
Total retained earnings $3,744,255 $707,306 $3,036,949
r1
Total liabilities and retained •
earnings $5,038,287 $725,534 $4,312,753
*A portion of the assets are restricted for debt retirement. See Public Utility
Fund financial statements.
/T
rl
See accompanying Notes to Financial Statements.
∎ I -30-
Exhibit XX 1
i
CITY OF FRIDLEY, MINNESOTA
LIQUOR FUND
BALANCE SHEET fl
December December
31 , 1977 31 , 1976
ASSETS
Current assets f I
Cash (deficit) $ 4,285 $ (1 ,541 )
Investments, at cost plus accrued interest 311 ,060 215,191
Accounts receivable - Anti-trust 1 ,499 1 ,679 r,
Inventory, at cost 138,083 130,494
Contract for deed receivable 6,917 14,128
Prepaid expenses 12
Total current assets $461 ,856 $359,951 I {
Property, plant and equipment, substantially all at cost
Land and buildings $198,641 $195,600 71
Furniture, fixtures and equipment 62,538 62,926
Signs and automotive 13,628 13,194
$274,807 $271 ,720 n
Less accumulated depreciation 58,311 50,467
Net property, plant and equipment $216,496 $221 ,253
Other assets fl
Contracts for deed receivable, less current portion $ 45,687 $120,814
Anti-trust accounts receivable, less current portion 1 ,495 3,353
Total other assets $ 47,182 $124,167 fl
Total assets $725,534 $705,371
LIABILITIES AND RETAINED EARNINGS
1
Current liabilities
Accounts payable $ 9,452 $ 1 ,693
Accrued sales tax 5,782 5,021
Total current liabilities $ 15,234 $ 6,714
Other liability
Deferred revenue $ 2,994 $ 5,032
Retained earnings
Invested in property, plant and equipment $216,496 $221 ,253
Unappropriated 490,810 472,372
Total retained earnings $707,306 $693,625
Total liabilities and retained earnings $725,534 $705,371
See accompanying Notes to Financial Statements.
-31- fl
I
!i'1
Exhibit XXI
i
71
If
CITY OF FRIDLEY, MINNESOTA
LIQUOR FUND
ANALYSIS OF CHANGES IN RETAINED EARNINGS
n
YEAR ENDED DECEMBER 31
r7
1977 1976
Retained earnings
January 1 $693,625 $679,662
Net income 98,681 98,963
ra
Transferred to General Fund 85,000 85,000
r, Retained earnings
December 31 $707,306 $693,625
n
n
r1
r'1
See accompanying Notes to Financial Statements.
n -32-
T1
.7
Ti
CITY OF FRIDLEY, MINNESOTA Fl
LIQUOR FUND r,
STATEMENT OF INCOME ' �
YEAR ENDED DECEMBER 31 —
Combined Store No. 2 ` 1
1977 1976 1977 1976 !
71
Sales $1 ,160,937 $1 ,061 ,562 -0- -0- --
Cost of Sales 932,831 847,082 -0- -0- 7
Gross Profit $ 228,106 $ 214,480 -0- -0-
Percent of Sales 19.7 20.2 -0- -0- 7
Operating expenses $ 167,518 $ 151 ,851 -0- -0-
Percent of sales 14.4 14.3 -0- -0-
71
Operating profit (loss) $ 60,588 $ 62,629 -0- -0-
Percent of sales 5.2 5.9 -0- -0-
Other income $ 38,093 $ 36,334 $4,250 $4,752 7
Percent of sales 3.3 3.4 -0- -0-
Net income $ 98,681 $ 98,963 $4,250 $4,752
Percent of sales 8.5 9.3 -0- -0-
II
7
-,
, 1
Ti
r..)-
See accompanying Notes to Financial Statements. '1
-33-
11
r1
Exhibit XXII
r
i 1
rl
rl
I
Store No. 3 Store No. 4
Hwy. 65 Holly Center
1977 1976 1977 1976
n
$591 ,618 $540,235 $569,319 $521 ,327
rl
475,519 432,207 457,312 414,875
$116,099 $108,028 $112,007 $106,452
19.6 20.0 19.7 20.4
$ 84,961 $ 76,287 $ 82,557 $ 75,564
14.4 14.1 14.5 14.5
$ 31 ,138 $ 31 ,741 $ 29,450 $ 30,888
71 5.3 5.9 5.2 5.9
$ 17,433 $ 19,171 $ 16,410 $ 12,411
n
2.9 3.5 3.6 2.4
' $ 48,571 $ 50,912 $ 45,860 $ 43,299
8.2 9.5 8.8 8.3
r
ee-
r
-34-
Exhibit XXIII fl
CITY OF FRWLP, MIflN SOTA,
LIQUOR FUND 1
STATEMENT OF OPERATING EXPENSES
YEAR ENDED DECEMBER 31
71
Store No. 3 Store No. 4
Combined Hwy. 65 Holly Center
7
1977 1976 1977 1976 1977 1976
Operating Expense ;fl
Selling
Salary - Clerks $ 77,642 $ 72,721 $ 38,594 $ 35,849 $ 39,048 $ 36,872
Bags & Wrapping 2,881 2,590 1 ,405 1 ,347 1 ,476 1 ,243 •,
Uncollectable Checks 716 136 318 82 398 54
Cash Shortage 6 16 10 31 ) (4) 47
$ 81 ,245 $ 75,463 $ 40,327 37,247 40,918 $ 38,216
Percent of Sales 7.0 7.1 6.8 6.9 7.2 7.3 7
Overhead
Utilities $ 9,111 $ 8,585 $ 6,239 $ 5,641 .$ 2,872 $ 2,944
Insurance 11 ,788 7,394 6,041 3,870 5,747 3,524
Rent 8,232 8,057 -0- -0- 8,232 8,057
Laundry 1 ,128 885 593 430 535 455
Repair & Maintenance 3,617 1 ,864 1 ,880 ' 808 1 ,737 1 ,056
Supplies 1 ,335 185 768 143 567 42
Communications 1 ,260 1 ,039 701 618 559 421
Alarm Service 492 485 269 274 223 211
Advertising 1 ,039 1 ,379 532 689 507 690
Depreciation 8,719 8,175 7,169 6,885 1 ,550 1 ,290
Other Overhead Expe 2,114 2,475 1 ,349 1 ,429 765 1 ,046 7
$ 40,523 $ 25,541 $ 20,787 $ 23,294 T1T756
Percent of Sales 4.2 3.8 4.3 3.8 4.1 3.8
i
General
Management Expense $ 20,337 $ 18,508 $ 10,372 $ 9,419 $ 9,965 $ 9,089 ^
Inventory Control 5,380 6,235 2,744 3,173 2,636 3,062 1
i
Accounting 4,926 5,699 2,512 2,900 2,414 2,799
Warehouse Expense 109 212 56 109 53 103 n
Data Processing 5,776 4,575 2,946 2,328 2,830 2,247
Other General
Overhead Expense 910 636 463 324 447 312
$ 37,438 $ 35,865 $ 19,093 $ 18,253 $ 18,345 $ 17,612 7
Percent of Sales 3.2 3.4 3.2 3.4 3.2 3.4
Total Operating Expense$167,518 $151 ,851 $ 84,961 $ 76,287 $ 82,557 $ 75,564
Total Percent of Sales 14.4 14.3 14.4 14.1 14.5 14.5 .,
1
See accompanying Notes to Financial Statements.
-35- ',
; i
I j Exhibit XXIV
i
n CITY OF FRIDLEY, MINNESOTA
it
LIQUOR FUND
rl
STATEMENT OF CHANGES IN FINANCIAL POSITION
! i YEAR ENDED DECEMBER 31
4 1977 1976
SOURCE OF FUNDS
n,
Operations:
Net income for the year $ 98,681 $ 98,963
n Items not requiring current outlay of funds
Depreciation 7,844 8,175
Decrease in long term contracts receivable 75,127 14,129
n Anti-trust receivables used 1 ,858 1 ,754
1 I Retirement of fixed assets 874
71
Total operations $184,384 $123,021
APPLICATION OF FUNDS
rm
Purchase of property and equipment $ 3,961 $ 100
Transfer to General Fund 85,000 85,000
r� Increase in working capital 93,385 36,100
II Decrease in deferred revenue 2,038 1 ,811
Total application of funds $184,384 $123,021
i
Various Elements of Net Increase in
r Working Capital :
Cash $ 5,826 $ 21 ,735
Investments 95,869 18,408
n Accounts receivable (180) (57)
Inventories 7,589 2,643
Contract for deed receivable (7,211 ) 1 ,025
Accounts payable (8,520) (326)
7 Prepaid expenses 12 (7,318)
Total $ 93,385 $ 36,110
I
n
1
n
r ;
See accompanying Notes to Financial Statements.
n
i -36-
Exhibit XXV II
CITY OF FRIDLEY, MINNESOTA
PUBLIC UTILITY FUND ;-1
BALANCE SHEETS
December December fl
31 ,1977 31 , 1976
ASSETS 71
Current assets
Cash (deficit) $ (5,923) $ 10,035 i l
Investments, at cost 1 ,563,038 1 ,316,460
Accounts receivable 272,150 292,207
Inventory of meters 3,371 5,235
Prepaid expenses 2,068 7
Total current assets $1 ,834,704 $1 ,623,937
Restricted assets - Revenue Bond Accounts it
Sinking Account
Cash $ 41 ,207
Investments, at cost $ 276,245 248,459
Due from other funds 5,000 ' )
Accounts receivable Metropolitan Waste Control Commission 410,533 428,401
Total restricted assets $ 691 ,778 $ 718,067 '1
; I
Property, plant and equipment, substantially all at cost
Land and improvements $ 154,590 $ 154,590
Buildings 737,067 737,068
Machinery and equipment 1 ,880,854 1 ,815,338 `
Other improvements 123,909 158,508
$2,896,420 $2,865,504 'l
Less accumulated depreciation 1 ,110,149 997,492 ii
Net property, plant and equipment $1 ,786,271 $1 ,868,012
Total assets $4,312,753 $4,210,016 j l
LIABILITIES AND RETAINED EARNINGS
Current liabilities
Accounts payable - other $ 7,407 $ 12,862
Bonds payable within one year 101 ,724 101 ,724
Total current liabilities $ 109,131 $ 114,586 11
Other liabilities
Bonds payable less portion due within one year $ 632,214 $ 733,939 ri
Deferred revenue - Metropolitan Waste Control Commission 410,533 428,401
Deferred credit - Sinking Account debt service 123,118 156,775
Deposits payable 808 708 fl
Total other liabilities $1 ,166,673 $1 ,319,823 1
Retained earnings
Invested in property, plant and equipment $1 ,786,271 $1 ,868,012 7
Unappropriated 1 ,250,678 907,595 n
Total retained earnings $3,036,949 $2,775,607
Total liabilities and retained earnings $4,312,753 $4,210,016
Il
See accompanying Notes to Financial Statements. + I
-37-
Exhibit XXVI
rn
n
CITY OF FRIDLEY, MINNESOTA
PUBLIC UTILITY FUND
STATEMENT OF CHANGES IN FINANCIAL POSITION
YEAR ENDED DECEMBER 31
PI
1977 1976
SOURCE OF FUNDS
Operations:
^ Net income for the year $231 ,402 $255,236
Items not requiring current outlay of funds
Depreciation 112,928 114,455
n Metropolitan Sewer Board credits used 17,868 20,500
Transfer-in from reserve & princ. & int. accounts 35,052
Write-off of accounts payable (receivable) (151 ) 1 ,733
fl Total operations $362,047 $426,976
APPLICATIONS OF FUNDS
Additions to Utility Plant in Service $ 31 ,188 $ 38,273
n Decrease in other liabilities (Deposits Payable) (100) 110
Adjustment of Long-Term Debt 5,117
Transfer to Other Funds (Principal & Interest Accounts) 83,302 97,533*
Transfers to Other Funds - Special Assessment Funds 31 ,435 38,626
n Increase in Working Capital 216,222 247,317
Total $362,047 $426,976
n
Various Elements of Net Increase in
r, Working Capital :
Cash and Investments $230,620 $228,810
Accounts receivable (20,057) 38,427
Inventory (1 ,864) (285)
l Prepaid expenses 2,068 (6,392)
I Accounts payable 5,455 (8,126)
Current portion of long-term payable (5,117)
rN
I Increase in working capital $216,222 $247,317
*Net of transfers plus interest earned, less interest expense.
See accompanying Notes to Financial Statements.
-38-
CITY OF FRIDLEY, MINNESOTA 71
PUBLIC UTILITY FUND
OPERATION AND MAINTENANCE ACCOUNT �fl
STATEMENT OF INCOME
YEAR ENDED DECEMBER 31
• 1977 1976 ii
Combined Combined
Operating Revenue 71
Water sales and sewer rents $1 ,180,577 $1 ,205,204
Connection permits 9,008 7,275
Sales of materials and miscellaneous service 86 611 74,484 71
Total operating revenue $1 ,276,196 $1 ,286,963
Operating expenses
Source of supply $ 498,476 $ 481 ,259 7
Power and pumping 121 ,985 150,558
Purification 48,985 60,229
Transmission and distribution 246,896 198,159
71
Customer accounting and collecting 67,944 72,852
Administrative and general 41 ,938 30,618
Depreciation 112,928 114,455
Total operating expenses $1 ,139,152 . $1 ,108,130 i
Operating income $ 137,044 $ 178,833 7
Other income and (expense)
Interest income - operating accounts $ 107,791 $ 92,185
Interest income - princ. & int. accounts 16,891 20,335
Connection charges 3,465 2,620
Interest expense (33,657) (38,500)
Fiscal agents' charges - princ. & int. accounts (132) (237) TI
Net income $ 231 ,402 $ 255,236
rl
ANALYSIS OF CHANGES IN RETAINED EARNINGS
YEAR ENDED DECEMBER 31 n
Retained earnings January 1 $2,775,607 $2,460,780
Add fl
Net income $ 231 ,402 $ 255,236
Current value credits used 17,869 20,500
Transfer-in 10,000 5,000
Reduction in deferred credit for debt service 33,657 38,500
Write-off of accounts payable 1 ,733
Deduct 7
Transfer-out - special assessment fund $ (31 ,435) $ (38,626)
Increase (decrease) in reserve - reserve accounts 32,484
Adjustment of accounts receivable (151) it
Retained earnings, December 31 $3,036,949 $2,775,607
11
See accompanying Notes to Financial Statements.
-39- 11
.n
Exhibit XXVII
n
r,
1977 1976 . 1977 1976
Water Water Sewer Sewer
n
$578,520 $647,403 $602,057 $557,801
2,880 2,415 6,128 4,860
68,872 58,054 17,739 16,430
$650,272 $707,872 $625,924 $579,091
n $ 1 ,565 $ 1 ,499 $496,911 $479,760
97,543 127,441 24,442 23,117
48,985 60,229
113,085 94,287 133,811 103,872
45,985 50,012 21 ,959 22,840
34,877 25,342 7,061 5,276
98,400 102,138 14,528 12,317
$440,440 $460,948 $698,712 $647,182
r, $209,832 $246,924 1.17122.8.8) $(68,091 )
rTh
II
n
n
n
rmi
r ..
-40-
r _ _ _ _ _
Exhibit XXVIII 71
II
CITY OF FRIDLEY, MINNESOTA ^}
PUBLIC UTILITY FUND
ANALYSIS OF CHANGES IN SINKING ACCOUNT .,
YEAR ENDED DECEMBER 31 , 1977
it
Cash Balance, January 1 , 1977 $ 41 ,207
71 Receipts
Interest on investments $ 16,891
Transfer from Water and Sewer Fund 100,200
Transfer from General Fund 5,000
Investments sold 248 460
Total receipts
Disbursements
Bonds $101 ,723
Interest 33,657
Fiscal agents service charge 132
Investments purchased 276,246
Total disbursements $411 ,758 ri
Cash balance, December 31 , 1977 $ -0-
Investment balance, January 1 , 1977 $248,459
Additions 276,246
Deductions 248,460
I
Investment balance, December 31 , 1977 $276,245
71
r'1
See accompanying Notes to Financial Statements.
-41- n
f
SPECIAL ASSESSMENT FUNDS
Special Assessment Funds are employed to finance and
account for the construction and financing of certain
drpublic improvements such as residential streets,
sidewalks, or storm sewers or the provision of services
which are to be paid for wholly or in part from special
{ assessments levied against benefited property. The
special assessment improvements. fact that spe rovements are paid for p
completely or in part by property owners in a limited
geographical area deemed to be specially benefited
distinguishes them from improvements which benefit the
entire community and which are paid for out of general
revenues or through the issuance of general obligation
ry bonds.
}
ri Exhibit XXIX
rrl" -
CITY OF FRIDLEY, MINNESOTA
n SPECIAL ASSESSMENT FUNDS
BALANCE SHEETS
il DECEMBER 31 , 1977
Special Special Special
Assessment Assessment Improvements
Combined Construction Debt Service Revolving
nASSETS
Cash (deficit) $ (54,233) $ (40,352) $ (13,916) $ 35
Investments, at cost
n Government securities 4,451 ,594 151 ,220 3,861 ,536 438,838
City of Fridley temporary bonds 35,000 35,000
Due from State of Minnesota 5,234 5,234
rlAccounts receivable 555 555
Special assessments receivable
Delinquent 655,072 634,489 20,583
Deferred
Principal 4,004,418 3,903,026 101 ,392
Total assets $9,097,640 $ 116,102 $8,420,690 $560,848
n LIABILITIES AND FUND BALANCE
Liabilities
fl Accounts and contracts payable $ 246,803 $ 246,803
l Deposits payable 173,416 $173,416
Bonded indebtedness - Future
nmaturities
Definitive bonds
Principal 5,721 ,062 $5,721 ,062
Temporary bonds (held by
r 1 City of Fridley)
Principal 35,000 35,000
Fund balance 2,921 ,359 (130,701) 2,664,628 387,432
n Total liabilities and
fund balance $9097,640 $ 116,102 $8,420,690 $560,848
n
n
5-
See accompanying Notes to Financial Statements.
n -42-
Exhibit XXX n
T
fl
fl
n
! 1
CITY OF FRIDLEY, MINNESOTA n
SPECIAL ASSESSMENT FUNDS
ANALYSIS OF FUND BALANCES
YEAR ENDED DECEMBER 31 , 1977 n
Fund Reduction Fund , t
Balance of Future Balance
January Expendi- Assessments December II
1 , 1977 Revenue tures Receivable 31 , 1977
FUND
Special Assessment
Construction Funds $ (31 ,926) $ 661 ,039 $ 759,814 -0- $ (130,701 ) n
Special Assessment
Debt Service Funds 2,223,398 2,330,216 1 ,582,912 $306,074 07,/‘6,GG4, 682
Revolving Fund 357,650 86,356 56 574
> 387,432
Total $2,549,122 $3,077,611 $2,399,300 $306,074 $2,921,359 n
► l
11
n
n
See accompanying Notes to Financial Statements.
-43- ri
T1 Exhibit XXXI
, :....)
f l CITY OF FRIDLEY, MINNESOTA
SPECIAL ASSESSMENT FUNDS
('n STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS
YEAR ENDED DECEMBER 31 , 1977
Special Special Special
Assessment Assessment Improvements
Combined Construction Debt Service Revolving
I1 Cash balance, January 1 , 1977 $ (144,210) $ 173,499 $ (327,858) $ 10,149
Receipts
rlProceeds from sale of bonds $1 ,150,000 $ 35,000 $1 ,115,000
I ' Special assessments 1 ,637,438 1 ,597,929 $ 39,509
Penalty and interest on
nspecial assessments 27,463 27,146 317
Interest on investments 276,802 13,917 237,570 25,315
Investments sold 4,864,521 180,915 4,292,174 391 ,432
Escrow deposits 40,095 40,095
R ITransfers from other funds 1 ,655,224 669,498 985,726
I Other 31 ,788 11 ,159 20,629
fl,Q.A.f-Lvi-v-444-9 Csvv".--14 c9-e__c
7 Total Receipts $9,683,331 $ 910,489 $8,255,545 $517,297
Disbursements
1 Capital Outlay
Transfers to other funds -
Interest during construction $ 4,340 $ 4,340
nRetirement of bonds
Principal $2,458,276 $2,458,276
Interest 326,711 326,711
•� Investments purchased 4,667,512 $ 332,138 $3,896,536 $438,838
� ' Transfers to other funds 1 ,499,431 211 ,778 1 ,255,857 31 ,796
Refund of escrow deposits 38,227 38,227
Other 598,857 576,084 4,223 18,550
ri Total disbursements $9,593,354 $1 ,124,340 $7,941 ,603 $527,411
rl
11 Cash balance, December 31 , 1977 $ (54,233) $ (40,352) $ (13,916) $ 35
n
n
ri
See accompanying Notes to Financial Statements.
1 -44-
TRUST AND AGENCY FUNDS
1 .
Trust and Agency Funds account for assets held by
'. i
the City as a trustee or agent for individuals,
private organizations, and other governmental
units.
Exhibit XXXII II
I
.71
CITY OF FRIDLEY, MINNESOTA i
TRUST AND AGENCY FUNDS
INDUSTRIAL REVENUE BOND FUND ^'
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS 71
YEAR ENDED DECEMBER 31 , 1977
Cash balance, January 1 , 1977 $ 88)
Receipts
Investments sold $4, 34
Interest on investments 92
Total receipts $4 '26
Disbursements ,.�
Transfer to General Fund $1 ,979
Other expenses 2,:59
Total disbursements $4,838
Cash balance, December 31 , 1977 $ 0-
II
See accompanying Notes to Financial Statements. rr
i7
-45-
GENERAL FIXED ASSETS
GROUP OF ACCOUNTS
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
these attributes: .
(1 ) tangible nature; (2) a life longer than the
current fiscal year; and (3) a significant value.
Exhibit XXXIII
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF GENERAL FIXED ASSETS
DECEMBER 31 , 1977
r,
n
; General fixed assets
Land $ 1 ,177,924
Building and structures 1 ,113,935
Improvements other than buildings 22,830,371
Furniture, fixtures, and office equipment 230,931
rl
Machinery and equipment 876,182
FIN
Construction in progress 184,239
Total general fixed assets $26,413,582
Investment in general fixed assets
Special assessments $21 ,923,240
pl
State-aid 236,883
General fund 2,653,766
71 Municipal liquor dispensary 15,421
Contributions 725,153
General obligation bonds 856,597
Water and sewer utilities 2,522
eg Total investment in general fixed assets $26,413,582
See accompanying Notes to Financial Statements.
-46-
fl
CITY OF FRIDLEY, MINNESOTA
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTIONS AND ACTIVITIES ' (
DECEMBER 31 , 1977 r1
n
Other
Total Land Buildings Improvements !l
General Government
City Manager $ 18,795
Accounting 51 ,887 7
Assessing 6,593
Elections & Voter
Registration 21 ,923 7
Planning 15,226
Civic Center 707,471 $ 18,448 $ 664,690
Total General fl
Government $ 821 ,895 $ 18,448 $ 664,690 $ -0-
Public Safety % I
Police protection $ 118,243
Fire protection 311 ,459 $ 70,281
Inspectional services 1 ,626 'l
Civil Defense 29,069 , i
Total Public r
Safety $ 460,397 $ -0- $ 70,281 $ -0-
Highways
Engineering $ 45,505
Street improvements 8,312,193 $ 5,103 $ 7,955,327
Water, sewer and
storm sewer 14,459,705 14,459,705
71
Traffic signals 101 ,561 101 ,561
City Garage 372,979 97,940 $ 265,101
r,
Total Highways $23,291 ,943 $ 103,043 $ 265,101 $22,516,593
Parks/Naturalist
Parks $ 1 ,620,133 $1 ,053,381 $ 100,849 $ 310,385
71
Naturalist 34,975 3,052 13,014 3,393
Total Parks & '1
Naturalist $ 1 ,655,108 $1 ,056,433 $ 113,863 $ 313,778 i
Total General ,,.,
Fixed Assets � �
Allocated to
Functions $26,229,343 $1 ,177,924 $1 ,113,935 $22,830,371
en
Construction in Progress 184,239 N `
Total Fixed n
Assets $26,413,582 ;1
See accompanying Notes to Financial Statements. ^
-47- 1
Exhibit XXXIV
L..*
Furniture
and
Machinery Equipment
$ 843 $ 17,952
51 ,887
6,593
21 ,923
5,850 9,376
r•` 24,333
$ 6,693 $132,064
n $ 87,686 $ 30,557
226,368 14,810
1 ,626
26,980 2,089
$342,660 $ 47,456
$ 21 ,930 $ 23,575
351 ,763
r �
9,938
$373,693 $ 33,513
1 .
$144,450 $ 11 ,068
8,686 6,830
$153,136 $ 17,898
r•
■
$876,182 $230,931
-48-
Exhibit XXXV rl
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION, ACTIVITY AND SOURCE I
YEAR ENDED DECEMBER 31 , 1977
Function January 1 , 1977 Additions Deductions December 31 , 1977
_l
General Government
City Manager $ 19,143 $ 755 $ 1 ,103 $ 18,795 71
Accounting 48,757 4,294 1 ,164 51 ,887
Assessing 6,940 710 1 ,057 6,593
Elections - Voter registration 21 ,923 -0- -0- 21 ,923
Planning 12,424 3,387 585 15,226 71
Civic Center 668,320 42,017 2,866 707,471
$ 777,507 $ 51 ,163 $ 6,775 $ 821 ,895 n
Public Safety
Police Protection $ 103,139 $ 50,517 $ 35,413 $ 118,243
Fire Protection 311 ,747 16,713 17,001 311 ,459 Fl
Inspection Services 1 ,732 760 866 1 ,626
Civil Defense 46,356 -0- 17,287 29,069
$ 462,974 $ 67,990 $ 70,567 $ 460,397
71
Highways
Engineering $ 40,740 $ 9,001 $ 4,236 $ 45,505 (---1
Street Improvements 7,669,314 676,105 33,226 8,312,193 1
Water, Sewer & Storm Sewer 14,241 ,255 218,450 -0- 14,459,705
Traffic Signals 87,980 13,581 -0- 101 ,561 ^
City Garage 411 ,305 7,018 45,344 372,979 I
$22,450,594 $ 924,155 $ 82,806 $23,291 ,943
Parks 7
Parks $ 1 ,571 ,641 $ 178,325 $129,833 $ 1 ,620,133
Naturalist 20,742 16,201 1 ,968 34,975
$ 1 ,592,383 $ 194,526 $131 ,801 $ 1 ,655,108
Construction
in progress $ 148,700 $ 89,956 $ 54,417 $ 184,239
Total $25,432,158 $1 ,327,790 $346,366 $26,413,582 71
Source 7
i
Special Assessments $21 ,379,196 $ 544,044 $21 ,923,240
State Aid 198,057 38,826 236,883 r.,
General 2,398,167 498,965 $243,366 2,653,766 � �
Liquor 15,260 161 15,421
Contributions 582,589 245,564 103,000 725,153
General Obligation Bonds 856,597 856,597 77
Water and Sewer 2,292 230 2,522
Total $25,432,158 $1 ,327,790 $346,366 $26,413,582
t1
See accompanying Notes to Financial Statements. ,�
-49- j ■
,.I
GENERAL LONG - TERM DEBT
GROUP OF ACCOUNTS
General obligation bonds and other forms of long-
term debt supported by general revenues are
obligations of a governmental unit as a whole and
not its individual constituent funds. Moreover,
the proceeds of such debt may be spent on facilities
which are utilized in the operations of several
funds. For these reasons, the amount of unmatured
long-term indebtedness which is backed by the full
faith and credit of the government should be recorded
{ and accounted for in a separate self-balancing group
of accounts titled the "General Long-Term Debt Group
of Accounts." This debt group will include, in
addition to conventional general obligation bonds,
time warrants and notes which have a maturity of
more than one year from date of issuance.
r
II Exhibit XXXVI
rl
r.+
r
it
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF GENERAL LONG-TERM DEBT
DECEMBER 31 , 1977
•
Amount available and to be provided for the payment
'7 of general long-term debt
Amount available in General Debt Service Fund $ 50,815
lo•., Amount to be provided by future taxes 374,551
Total available and to be provided $425,366
General long-term debt payable
Serial Bonds $285,000
Contracts - City Garage and Garage Addition 133,834
Due to Public Utility Fund - Loan for park
improvement 5,000
Fund balance - Unappropriated 1 ,532
Total $425,366
7
1"•
See accompanying Notes to Financial Statements.
■ -50-
NOTES TO
FINANCIAL STATEMENTS
•
•
R
1 !
CITY OF FRIDLEY
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31 , 1977
Note 1 : Summary of Significant Accounting Policies
rl
The City statements are presented on the accrual basis of accounting with the fl
following minor exceptions: !_
(a) General property taxes - Revenue is recognized in the year of collection; fl
(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 matured and not paid;
(c) Interest revenue on special assessments receivable - Interest revenue is
recognized in the year of anticipated collection of the current principal
Fl
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 f
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.
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 as the "General
Long-Term Debt Group of Accounts."
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 depreciation has been
provided on general fixed assets. Ti
Note 2: Pending Litigation
With the exception of the below mentioned items, the City had the usual and customary
71
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 Comstock and Davis, Inc consulting engineers, were named 71
as defendants in an action brought by A. J. Chromy for breach of warranties and
misrepresentation regarding a construction contract. The plaintiff claimed that he i
was not compensated for all of the work performed. The City has denied the allegation
and filed a cross complaint against the consulting engineering firm. The question
of insurance coverage is to be resolved. The plaintiff claims the City and the
consulting engineer were negligent in preparing plans and specifications.
-51-
I �
CITY OF FRIDLEY
r4.-41 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31 , 1977
I ( Note 3: Deferred Credit, Metropolitan Waste Control Commission (Public Utility
Fund)
n The deferred credit of the Public Utility Fund represents:
J y 1 . The amount of $360,977 which will be repaid to the City in
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
7 billings from the Commission.
2. The amount of $49,556 which will be repaid, with interest,
through 1988 is for advances made to the Commission during
j 1971 and 1972.
j� Note 4: Pension Plans (All Funds)
The City has no pension funds as such. Other agencies are responsible for the
administration of all of the pension plans covering City employees. 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; (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
' 1 civilian employees. The employees covered by the Coordinated P.E.R.A. Plan
are also covered by Social Security.
The City is currently making all pension contributions required by law.
A brief explanation of each of the pension plans follows:
1 . Fridley Firemen's Relief Association:
As of December 31 , 1977, there thirty-five active
Volunteer Firemen coverd by this pension system. The
employer's contribution in 1977 was $38,922. The pension
plan provides benefits for Volunteer Firemen only, and
n 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
rI
I -52-
! {
CITY OF FRIDLEY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31 , 1977
Fl
Note 4: Pension Plans (All Funds) (Continued) fl
1 . Fridley Firemen's Relief Association (Continued) :
Firemen's Relief Association by the State Auditor's ,fl
Office as of December 31 , 1976, shows an actuarial
surplus in the fund of $52,586. Funding for the
pension plan is provided entirely from the 2% rebate n
received from the State of Minnesota. This rebate II
is in the form of a 2% levy on all fire insurance
premiums written in the City of Fridley. In 1977,
this source of revenue provided $38,922 to the fund, II
which was in excess of the amount needed to meet the
normal pension costs.
71
2. Fridley Police Pension Association:
The Fridley Police Pension Association was incorporated
on December 26, 1966 to be effective January 1 , 1967. I_ .
On December 31 , 1977, the plan covered twenty-six sworn
Police Officers on the City of Fridley Police Force.
In 1977, the employer's contribution was $117,959. 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 reducing the City's liability for newly
hired Police Officers, as the State-Wide Police and Fire ri 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. In addition, a special bill was adopted by the J1
State Legislature, with an effective date of July 11 , 1977,
which also provides for putting new officers in P.E.R.A. ,
in addition to some other features.
71
An actuarial report prepared for the Fridley Police Pension
Association by Hewitt Associates shows an unfunded actuarial
deficit of $367,918 as of December 31 , 1976. Assets of the
association were shown as $878,422 and total liabilities of
$1 ,246,340. In 1969, the State Legislature adopted legislation .�
requiring all municipalities in the State to gradually increase I
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 legislation was to
n
-53-
r
CITY OF FRIDLEY
, m NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
.1 DECEMBER 31 , 1977
7 Note 4: Pension Plans (All Funds) (Continued)
2. Fridley Police Pension Association (Continued):
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.
nThe City has proceeded ahead of schedule in increasing its
contributions to the plan.
The normal cost of the pension plan is 27.177% 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 4.2% of payroll . The
total funding requirements of the plan, therefore, are
approximately 31 .4% of covered payroll , with the employees
contributing 8% and the City 23.4%.
The City receives a 2% rebate on automobile insurance policies
written in the City. This is for the purpose of helping pay
r+ the employer's share of pension costs. In 1977, this amounted
to $49,162. The City contributed $68,797 in taxes during the
year 1977. The total contributions to the fund, for the
employer's share were $117,959. This compares with a normal
cost of the plan, assuming there was no deficit, of $92,501 .
The amount the City and the employees contributed is in
excess 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 the Guidelines Act for this pension
plan, and to retire the deficit entirely by 2010. This is
provided for in Special Legislation enacted by the State
Legislature. The City bears the ultimate funding liability for
+ the fund, except for the amount contributed by the employees.
el 3. Public Employees Retirement Association - Police and Fire Plan:
As of December 31 , 1977, there were eleven full-time employees
in the State-Wide Police and Fire Plan. The employer's contribution
rl I ; in 1977 was $16,929. The normal cost of this plan is 20% of
payroll . The employee contributes 8% of payroll and the employer
12%. According to the Financial Report of the Public Employees
Retirement Association, this plan was 80% funded as of
June 30, 1977. The City's funding responsibility is limited to
the 12% employer's contribution.
r,
-54-
ii
CITY OF FRIDLEY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (I)/
DECEMBER 31 , 1977
Note 4: Pension Plans (All Funds) (Continued)
4. Basic Public Employees Retirement Association Plan:
As of December 31 , 1977, there were thirty permanent employees 1�
and one temporary employee 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 ' I
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 Financial
Report of P.E.R.A. , the plan was 56% funded as of June 30, 1977.
n
5. Coordinated Public Employees Retirement Association Plan: _1
As of December 31 , 1977, there were eighty-one permanent
employees and eleven temporary employees covered by this
plan. The employer's contribution in 1977 was $50,422.
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. rl
The employee contributes 4% of payroll and the employer 4% of
payroll , plus an additional 12% to retire the actuarial deficit.
Under State law, the actuarial deficit is scheduled to be
retired by 1997. The Financial Report of P.E.R.A. shows the
plan was 99% funded as of June 30, 1977. The City's responsibility
is limited to the 4% contribution.
Note 5 : Leases
The City leases space for Liquor Store No. 4, 6586 University Avenue Northeast. 71 The lease, expiring July 31 , 1979, requires rental payments as follows:
1/1/78 to 12/31/78 $8,382
1/1/79 to 7/31/79 4,266 —I
The above includes $63 per month for maintenance of the parking lot. There are fl
no other provisions in the lease for the City to pay a pro rata share of common
center expense, for increases in property taxes, or other expense.
-55- 71
CITY OF FRIDLEY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31 , 1977
Note 6: Bonded Debt
The City had four types of bonded debt outstanding at December 31 , 1977. They
are: (1 ) general obligation bonds for the Civic Center, (2) general obligation
improvement bonds, (3) general obligation utility revenue bonds, and (4) public
utility bonds.
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.
r.
See the supplemental information for schedules of bond and interest maturities.
Note 7: Vacation and Sick Leave
71 The General Fund Balance Sheet as presented, reflects the City's accrued liability
for vacation benefits for all City employees. It also includes the estimated
!"-m 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.
r•
Note 8: Deficiency in Pledged Collateral
Minnesota statutes require depositories for City funds to pledge collateral to
secure balances in excess of F.D.I.C. insurance coverage. At December 31 , 1977
the collateral pledged by Northwestern National Bank of Saint Paul was below the
statutory requirement.
Pm
f
I -56-
-"STATISTICAL SECTION IV
Table 1
r•
n
CITY OF FRIDLEY, MINNESOTA
n
i i GENERAL FUND EXPENDITURE ANALYSIS
BY FUNCTION
General Civic Public Public Parks and
Year Government Center Safety Works Recreation Total
1968 $188,154 $ 54,394 $ 378,493 $316,244 $170,974 $1 ,108,259
,o! 1969 199,356 56,049 496,542 368,494 200,269 1 ,320,710
■ i
1970 230,473 50,051 565,629 352,661 327,552 1 ,526,366
f l 1971 255,423 53,809 621 ,908 418,167 341 ,533 1 ,690,840
1972 293,510 56,562 652,201 453,682 351 ,739 1 ,807,694
r
1973 310,866 62,076 848,448 495,006 407,943 2,124,339
1974 357,012 61 ,449 893,201 675,381 493,160 2,480,203
1975 436,032 77,753 1 ,016,774 755,904 582,982 2,869,445
^
1976 476,286 80,067 1 ,146,181 879,626 699,304 3,281 ,464
1977 484,663 109,647 1 ,239,730 928,742 839,151 3,601 ,933
n
1
r-�
I -57-
Table 2
! '
! i
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND REVENUES BY SOURCE �
LAST TEN FISCAL YEARS
Charges Inter- 1 l
General Licenses for govern- Inter-
Property Permits, Current mental Fund Other Total
Year Tax and Fines Services Revenues Transfers Revenues Revenues 14
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 ! 1
1970 894,153 96,994 45,172 331 ,699 157,890 73,340 1 ,599,248 1
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 (7
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 + I
1975 1 ,619,966 174,630 59,936 648,872 335,693 115,753 2,954,850 e)
�
1976 1 ,762,205 210,904 63,200 811 ,406 385,388 179,736 3,412,839 i-
1977 1 ,988,618 270,409 99,755 1 ,053,894 384,743 243,016 4,040,435 '
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. '�
� 6
! t
-58- i
r Table 3
n
CITY OF FRIDLEY, MINNESOTA
*, TAX LEVIES AND TAX COLLECTIONS
YEARS 1968 THROUGH 1977
Collections Percentage Collection
of current of levy of prior Ratio
year's taxes collected year's taxes of total
r Year Total during fiscal during fiscal during fiscal Total collections
collected tax levy period period period collections to tax levy
1968 $ 757,325 $ 743,851 98.22 $29,672 $ 773,523 1 .0213:1
dI
1969 904,756 877,150 96.95 16,349 893,499 .9875:1
rTh 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
rr
1972 1 ,139,871 1 ,119,975 98.25 75,812 1 ,195,787 1 .0490:1
r 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
n
1977 2,057,083 2,033,169 98.84 39,505 2,072,674 1 .0076:1
r't
-59-
L
'
CITY OF FRIDLEY, MINNESOTA
ASSESSED VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY
(Shown by Year of Collectibility)
Years 1969 Through 1979 fl
Fl
Fiscal Period ,�
1969 1970 1971 1972 ; I
Population 28,235 29,233**** 29,636 30,340
Real Property rl
Estimated Market Value $161 ,803,359 $179,336,929 $215,276,076 $224,892,331
Assessor's Lmt. Mar. Val . $ 50,968,058 $ 55,773,785 $ 67,811 ,964 $ 69,941 ,515
Assessed Value
Homestead $ 4,901 ,847 $ 5,126,387 $ 5,271 ,642 $ 5,295,419 Ii
Excess and Non-Homestead 12,502,701 14,063,578 18,649,587 19,425,726
Area-Wide Allocation --- --- --- ---
Taxable Value $ 17,404,548 $ 19,189,965 $ 23,921 ,229 $ 24,721 ,145 f !
Personal Property
Estimated Market Value il Taxable Property $ 19,435,721 $ 28,671 ,122 $ 32,262,943 $ 36,379,141
Exempt Property 8,127,429 10,211 ,890 10,593,848 ---
Total Market Value $ 27,563,150 $ 38,883,012 $ 42,856,791 $ 36,379,141
Assessor's Value
71
Taxable Property $ 6,122,252 $ 8,916,719 $ 10,162,827 $ 11 ,313,913
Exempt Property 2,560,140 3,175,898 3,337,062 ---
Total Assessor's Value $ 8,682,392 $ 12,092,617 $ 13,499,889 $ 11 ,313,913 n
Taxable Value:
Taxable Property $ 2,311 ,980 $ 3,245,428 $ 3,687,092 $ 4,080,720
Exempt Property 966,800 1 ,155,935 1 ,210,692 ---
Taxable Value $ 3,278,780 $ 4,401 ,363 $ 4,897,784 $ 4,080,720 fl
Total Real & Personal Property
Estimated Market Value $189,366,509 $218,219,941 $258,132,867 $261 ,271 ,472 7
Limited Market Value $ 59,650,450 $ 67,866,402 $ 81 ,311 ,853 $ 81 ,255,428
Total Taxable Value $ 20,683,328 $ 23,591 ,328 $ 28,819,013 $ 28,801 ,865 fl Ratio of Market Value
To Limited Market Value .315:1** .311 :1** .315:1** .311 :1**
To Taxable Value .109:1 .108:1 .112:1 .110:1
rl
Per Capita Valuations
Estimated Market Value $ 6,707 $ 7,465 $ • 8,710 $ 8,640
Taxable Value $ 733 $ 807 $ 972 $ 952 1
(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. 71
Beginning in 1972, the value of inventories and fixtures was dropped. Cities I
were reimbursed by the State via other State Aids.
(2) 1972 and subsequent valuations reflect changes as provided for in Laws of 1971 , 11
Extra Session, Chapter 31 , amended. n
Beginning with taxes levied in 1972, collectible in 1973, Minnesota assessed ■-1- ;
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.
1
7 Table 4
Fiscal Period
1973 1974 1975 1976 1977 1978
31 ,143 32,542 32,486 31 ,570 31 ,940 31 ,940***
(2) (3)
$266,730,657 $294,415,529 $325,394,031 $367,264,013 $405,285,288 $456,038,596
$242,991 ,629 $270,273,456 $288,949,935 $327,232,236 $363,541 ,172 $408,865,261
$ 16,233,935 $ 16,582,864 $ 17,104,208 $ 17,644,329 $ 19,607,606 $ 20,453,732
73,166,443 84,043,948 90,832,944 105,665,396 117,424,505 124,640,289
(3,140,753) (4,541 ,034) (4,812,211 ) (6,271 ,738)
$ 89,400,378 $100,626,812 $104,796,399 $118,768,691 $132,219,900 $138,822,283
$ 15,796,166 $ 17,323,420 $ 18,183,599 $ 18,073,064 $ 18,167,447 $ 19,340,803
--- --- --- --- --- ---
MN $ 15,796,166 $ 17,323,420 $ 18,183,599 $ 18,073,064 $ 18,167,447 $ 19,340,803
$ 14,390,307 $ 15,902,900 $ 16,147,000 $ 16,103,100 $ 16,296,200 $ 17,348,700
--- --- --- --- --- ---
$ 14,390,307 $ 15,902,900 $ 16,147,000 $ 16,103,100 $ 16,296,200 $ 17,348,700
$ 6,187,860 $ 6,838,247 $ 6,943,210 $ 6,924,333 $ 7,007,366 $ 7,459,941
$ 6,187,860 $ 6,838,247 $ 6,943,210 $ 6,924,333 $ 7,007,366 $ 7,459,941
$282,526,823 $311 ,738,949 $343,577,630 $385,337,077 $423,452,735 $475,379,399
$257,381 ,936 $286,176,356 $305,096,935 $343,335,336 $379,837,372 $426,213,961
$ 95,588,238 $107,465,059 $111 ,739,609 $125,693,024 $139,227,266 $146,282,224
.911 :1* .918:1* .888:1* .891 :1* .897:1* .897:1*
.338:1 .345:1 .325:1 .326:1 .329:1 .308:1
el
$ 9,072 $ 9,580 $ 10,576 $ 12,206 $ 12,689 $ 14,884
$ 3,069 $ 3,302 $ 3,440 $ 3,981 $ 4,359 $ 4,580
(3) Property values include net amount allocated pursuant to Laws of 1971 , Extra
r, Session, Chapter 23, from Area-Wide "Pool ."
Beginning with taxes levied in 1974, collectible in 1975, the value on which
the City of Fridley's mill rate is calculated, is not the City's assessed
value but a taxable value based on the City of Fridley's assessed value plus
the net addition or deletion from the Metro Tax Pool .
*Source - State of Minnesota Department of Revenue
**Source - Anoka County Assessor's Office
***No census figure for 1978 is available, therefore, the 1977 figure is used.
****United States Census
-61-
7
F1
( I
' I
71
CITY OF FRIDLEY, MINNESOTA
71
HISTORY OF TAX LEVIES AND MILL RATES
(Shown by Year of Tax Collectibility)
1969 1970 1971 1972
Tax Levies
Ti
General Fund $727,902 $ 909,650 $1 ,001 ,209 $ 923,625
P.E.R.A. Fund 60,288 90,312 47,402 59,566
Fire Relief Assoc. Fund 20,683 24,057 27,523 17,602
' I
Police Pension Assoc. Fund 20,683 44,610 55,862 57,547
General Debt Service Funds 75,200 ---- 83,590 81 ,531
Capital Improvement Fund ---- ---- ---- ----
Total $904,756 $1 ,068,629 $1,215,586 $1 ,139,871
7
Mill Rate
General Fund 35.16 38.56 34.74 32.07
P.E.R.A. Fund 2.91 3.83 1 .64 2.07 1.1
Fire Relief Assoc. Fund .95 1 .02 .96 .61
Police Pension Assoc. Fund .95 1 .89 1 .94 2.00
General Debt Service Funds 3.63 -- 2.90 2.83
Capital Improvement Fund -- -
43.60 45.30 42.18 39.58
(2) 1972/73 and subsequent mill rates reflect changes as provided in Laws of 1971 ,
Extra Session, Chapter 31 , as 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 71
arrive at "adjusted" market values. Tax rates are one-third of past rates.
Ti
Ti
►1
-62- fl
I
r,
Table 5
r%
n
I
i �
I7
ri
1973 1974 1975 1976 1977 1978
' i
$1 ,075,464 $1 ,178,854 $1 ,624,144 $1 ,769,965 $1 ,974,563 $2,114,917
rl 53,954 95,895 ---- ---- ---- ----
, i 13,776 ---- ---- ----
` 49,992 75,723
---- ---- ---- ----
67,200 39,200 38,400 37,500 36,600 41 ,000
iI
---- ---- ---- 46,596 45,920 43,401
$1 ,260,386 $1 ,389,672 $1 ,662,544 $1 ,854,061 $2,057,083 $2,199,318
r"' 10.84 10.97 14.53 14.09 14.18 14.47 rn '
.54 .89 -- -- -- --
14 -- -- -- -- --
.- .51 .71 -- -- -- --
.68 .37 .35 .30 .27 .28 ,z''
-- -- -- .37 .33 .30 .2,8
m 12.71 12.94 14.88 14.76 14.78 15.05 /c.PC7
7 (3) Property values include net amount allocated pursuant to Laws of 197, Extra ''_-'
Session, Chapter 23, from Area-Wide "Pool . "
Beginning with taxes levied in 1974, collectible in 1975, the value on which
ii the City of Fridley's mill rate is calculated, is not the City's assessed value
but a taxable value based on the City of Fridley's assessed value plus the
r. net addition or deletion from the Metro Tax Pool .
n
a
r
r
r,
-63-_ 3
n
Table 6
n
CITY OF FRIDLEY, MINNESOTA 14
1
STATEMENT OF VALUATIONS AND LEVIES BY CLASSES OF PROPERTY
(1977 Valuation for Taxes Payable in 1978) el
n
Assessed 1
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
Commercial $ 19,817,668 $3,002,883 $ 16,814,785 11 .495% $ 252,811 .60 , {
Industrial 34,194,460 5,181 ,336 29,013,124 19.834 436,212.73 rl
281 424 648 745 3,632,679 2.483 54,609.07
F.M.C. #85 4,
Gas 1 ,238,357 187,643 1 ,050,714 .718 15,791 .10 1
Electric 1 ,930,872 292,576 1 ,638,296 1 .120 24,632.36
Billboards, etc. 9,288 1 ,407 7,881 .005 109.9
Real Estate-P.U. 359,651 54,496 305,155 .209 4,596.57
71
Vacant Land 1 ,406,100 1 ,406,100 .961 21 ,135.45 !i
Apartments 13,531 ,852 13,531 ,852 9.251 203,458.91 n
i
Residential 75,784,290 75,784,290 51 .807 1 ,139,400.68
Received from
Metro Pool $3,097,348 3,097,348 2.117 46,559.56
TOTALS $152,553,962 $9,369,086 $3,097,348 $146,282,224 100.000 $2,199,318.00 01
, 4
The assessed value for the first seven classes of property shown above has been reduced for
local taxable value to 84.8474% 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 115.00. This money then goes into the Metro Pool .
The City of Fridley received $46,559.56 from this pool . ' f
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 rl
is paid by the State to the County, and the County in turn distributes this to various ) 1
local governments as part of the levy request. An additional refund may be received r- -J
by the taxpayer directly from the State depending on income and age.
rl
-64-
71
rw
CITY OF FRIDLEY, MINNESOTA Table 7
rR SIGNIFICANT MINNESOTA TAX POLICIES
GENERAL
n
All non-exempt property in Minnesota is subject to taxation by local taxing districts.
The tax levied on a property is derived by multiplying its assessed valuation by the
total tax rate. The tax rate (mills) is determined by the County Auditor, dividing
rl each taxing district's dollar levy (budget less aids and revenues) by its total
assessed valuation (taxable value) . (Budget ; taxable value = mill rate. )
rt Properties are valued by local or county assessors at least every four years at their
' estimated market or potential sales value (Estimated Market Value = EMV). Because
Minnesota legislation limits the amount which any property value (for tax purposes)
,iR may be increased in one year, a Limited Market Value (LMV) is used to determine a
property's assessed value for tax purposes. (A State objective is to increase
undervalued properties to near market value within four years in annual stages. )
• The Minnesota Department of Revenue appraises representative properties annually,
' t comparing sales or market values with the LMV. Sales ratios are averaged over three
years to determine an average sales ratio. The sales ratio is also applied to
►I determine municipal and school district state-aids.
For tax purposes, the assessed valuation of a property is computed on the basis of
its Limited Market Value and its category of use. Some examples are:
Pft
Residential homestead property: Part of the LMV said to be "homestead" ($15,000 for
taxes due in 1978) is assessed at 22%, and the balance at 36%. The assessed value of
r-'1 a homestead residence with an LMV of $40,000 would be $12,300 for taxes collectible
in 1978. (See "homestead" note below. )
riN Residential non-homestead property is assessed at 40% of its LMV. The assessed value
of a non-homestead residence (rental property) with an LMV of $40,000 would be $16,000.
Industrial/commercial/utility property is assessed at 43% of LMV. (LMV of utilities
is computed by the Minnesota Department of Revenue. )
NOTE: A property qualifies as a "homestead" if it is occupied by the owner
*� on the assessment date. The homestead base is adjusted annually by the Department
' 1 of Revenue based upon an inflation index.
n EXEMPT PROPERTY: Exempt real property includes Indian lands, public property, and
( educational , religious and charitable institutions. In 1967, certain personal property
was exempted from taxation, and additional properties (farm machinery, inventories,
manufacturers' machinery) were exempted in 1971 and 1973. Originally the State provided
direct reimbursement for taxes lost due to newly exempt properties; however, later
' ` implemented local government aids consider these, and reimbursements have been "grand-
fathered in" (guaranteed) at previous levels and are no longer identified.
r.
HOMESTEAD CREDIT: Homestead taxes are reduced by a 45% credit (maximum $325). This
credit is subtracted on the tax statement, and the taxpayer pays only the net amount;
homestead credits are reimbursed by the State to the taxing districts in proportion to
it
their levies, thus relieving the property tax burden.
"CIRCUIT BREAKER" TAX RELIEF: Further residential property tax credits are gauged by
rr percentages of the gross property tax to household income: (1 ) To the extent a
homeowner's tax or a renter's imputed tax exceeds certain percentages of household
income (1% for lower income groups, up to 4% for incomes of $100,000 or more),
• homeowners or renters may receive State credits up to $800 (combined homestead and
income-adjusted credits).
-65-
►'1
Table 8
Jr1
n
11
! 1
CITY OF FRIDLEY, MINNESOTA n
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS
YEARS 1968 THROUGH 1977
7
Ratio Total
Ratio of Outstand- r1
of Total ing , 4
Current Collec- Current
Collec- Delin- tions and
Current Current tions to quent to Delin-
Assess- Assess- Amount Assess- Current quent
Fiscal ments ments Due ments Total Levy Assess-
Year Due Collected (Percent) Collected Collected (Percent) ments fl 1968 $705,501 $544,615 77.20 $125,016 $669,631 94.92 $812,821
1969 683,141 563,413 82.47 158,713 722,126 105.71 744,043 n
1970 681 ,841 572,939 84.03 62,085 635,024 93.13 818,438
1971 688,887 606,297
88.01 133,150 739,447 104.34 751 ,726 0
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 fl
1975 953,453 696,193 73.02 273,771 969,964 101 .73 736,530
5 767,498 81 .39 223,843 991 ,341 105.13 706,413 it
1976 942,96 ,
1977 918,918 801 ,584 87.23 168,821 970,405 '105.60 655,073 P1
Ti
11
1
1l
-66- 11
rw
Table 9
CITY OF FRIDLEY, MINNESOTA
J `'1 DEBT SERVICE REQUIREMENTS - ALL FUNDS
n
DECEMBER 31 , 1977
Year Principal Interest Total
rut
' 1 1978 $ 455,000 $ 234,297.50 $ 689,297.50
1979 910,000 268,080.00 1 ,178,080.00
1980 925,000 229,400.01 1 ,154,400.01
1981 795,000 190,055.00 985,055.00
1982 790,000 154,812.50 944,812.50
1983 585,000 123,985.00 708,985.00
71 1984 500,000 99,432,50 599,432.50
, 1985 440,000 78,035.00 518,035.00
1986 390,000 59,103.75 449,103.75
P4 1987 340,000 41 ,990.00 381 ,990.00
1988 235,000 27,800.00 262,800.00
1989 135,000 18,250.00 153,250.00
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
1 ■
$6,775,000 $1 ,559,066.26 $8,334,066.26
r1
T
SUMMARY OF OUTSTANDING BONDED INDEBTEDNESS
Bonds Outstanding January 1 , 1977
Special Assessment - Permanent $5,414,337
r9 General Debt Service 310,000
Public Utilities - Sinking 835,663
Special Assessment - Temporary 1 ,650,000
rl
$8,210,000
ff
Bonds Issued During 1977
Special Assessment - Permanent $1 ,115,000
1 r` Special Assessment - Temporary 35,000
' $1 ,150,000
n Bonds Retired During 1977
Special Assessment - Permanent $ 808,276
General Debt Service 25,000
Public Utilities - Sinking 101 ,724
Special Assessment - Temporary 1 ,650,000
$2,585,000
''. Balance and Purpose of Bonds Outstanding on December 31 , 1977
' Special Assessment - Permanent $5,721 ,061
�1 General Debt Service 285,000
r Public Utilities - Sinking 733,939
Special Assessment - Temporary 35,000
$6,775,000
m,
-67-
Table 10 '
_II
(--- ,
r1
Il
n
? r
5
CITY OF FRIDLEY, MINNESOTA
DEBT SERVICE REQUIREMENTS - GENERAL OBLIGATION BONDS
CIVIC CENTER
DECEMBER 31 , 1977
Year Principal Interest Total 'It
1978 $ 25,000 $ 9,422.50 $ 34,422.50
1979 30,000 8,500.00 38,500.00 r"1
1980 30,000 7,480.00 37,480.00 1
1981 30,000 6,460.00 36,460.00
1982 30,000 5,425.00 35,425.00
1983 35,000 4,287.50 39,287.50 7:1
1984 35,000 3,062.50 38,062.50
1985 35,000 1 ,837.50 36,837.50
1986 35,000 612.50 35,612.50
ri
$285,000 $47,087.50 $332,087.50
n.
ll
' 1
fl
r_1
it
-68- 11
Table 11
r.
^,
1
1
*1 CITY OF FRIDLEY, MINNESOTA
f
DEBT SERVICE REQUIREMENTS - PERMANENT BONDS
r, SPECIAL ASSESSMENT FUNDS
DECEMBER 31 , 1977
'l Year Principal Interest Total
I
1978 $ 380,000 $ 199,380.22 $ 579,380.22
r 1979 778,276 231 ,348.69 1 ,009,624.69
1980 753,035 198,513.22 951 ,548.22
1981 657,250 167,529.77 824,779.77
r.1 1982 662,500 137,842.57 800,342.57
1983 500,000 111 ,122.50 611 ,122.50
1984 415,000 89,545.00 504,545.00
1985 355,000 71 ,122.50 426,122.50
n 1986 305,000 55,166.25 360,166.25
1987 290,000 40,415.00 330,415.00
1988 215,000 27,450.00 242,450.00
PI 1989 135,000 18,250.00 153,250.00
■ 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
; 1 1993 50,000 3,975.00 53,975.00
1994 50,000 1 ,325.00 51 ,325.00
r"% $5,721 ,061 $1 ,381 ,510.72 $7,102,571 .72
I
n
.
n
r7
r'
■ -69-
Table 12
t
n
ll
CITY OF FRIDLEY, MINNESOTA 71
DEBT SERVICE REQUIREMENTS - TEMPORARY BONDS
SPECIAL ASSESSMENT FUNDS
DECEMBER 31 , 1977
Year Principal Interest Total
i
1978 $ -0- $2,450.00 $ 2,450.00
1979 -0- 2,450.00 2,450.00
1980 35,000 2,450.00 37,450.00
$35,000 $7,350.00 $42,350.00
n
' 1
71
ri
it
-70-
Table 13
r1L__
n
' 6
CITY OF FRIDLEY, MINNESOTA
DEBT SERVICE REQUIREMENTS
PUBLIC UTILITY REVENUE & WATER IMPROVEMENT BONDS
DECEMBER 31 , 1977
r,
Year Principal Interest Total
1978 $ 50,000 $ 23,044.78 $ 73,044.78
1979 101 ,724 25,781 .31 127,505.31
1980 106,965 20,956.79 127,921 .79
1981 107,750 16,065.23 123,815.23
r, 1982 97,500 11 ,544.93 109,044.93
1983 50,000 8,575.00 58,575.00
1984 50,000 6,825.00 56,825.00
1985 50,000 5,075.00 55,075.00
1986 50,000 3,325.00 53,325.00
1987 50,000 1 ,575.00 51 ,575.00
1988 20,000 350.00 20,350.00
$733,939 $123,118.04 $857,057.04
r,
r-
,
-71-
r'1
Table 14 1t
1!
7 t
CITY OF FRIDLEY, MINNESOTA F-1
COMPUTATION OF LEGAL DEBT MARGIN
DECEMBER 31 , 1977
i
Assessed Value $152,553,962*
(A) Debt Limit 6.667 Percent of Assessed Value $10,170,773
Amount of Debt Applicable to Debt Limit:
Total Bonded Debt $ 6,775,000
(B) Deductions: i
General Debt Service Fund Assets $ 50,815
Special Assessment Bonds 5,756,061
Water Revenue & Improvement Bonds 733,939 6,540,815
Total Amount of Debt Applicable to Debt r�
Limit 234,185 i
Legal Debt Margin $ 9,936,588
rl
{ I
*Includes $6,271 ,738 negative adjustment from "Fiscal Disparity" area wide tax base.
Note: (A) M.S.A. Section 475.53 (see following page) rl Note: (B) M.S.A. Section 475.51 (see following page)
I
11
p
-72- ! 1
r"
Table 14
Continued
--1 CITY OF FRIDLEY, MINNESOTA
rs COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED)
DECEMBER 31 , 1977
I Note (A):
M.S.A. Section 475.53 et seq. Limit on Net Debt
"Subdivision 1 . Generally. Except as otherwise provided in
section 475.51 , no municipality, except a school district or
a city of the first class, shall incur or be subject to a
n net debt in excess of 6.67 percent of the assessed value."
Note (B):
M.S.A. Section 475.51 Definitions
PN
"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
r,,,,, levied upon property specially. benefited thereby, including
those which are general obligations of the municipality issuing
them, if the municipality is entitled to reimbursement in whole
or in part from the proceeds of the special assessments.
PI
(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
rl public waterworks systems, and public lighting, heating or
power systems, and of any combination thereof or for any other
public convenience from which a revenue is or may be derived.
(6) Debt service loans and capital loans made to a school
district under the provisions of sections 124.42 and 124.43.
^ (7) Amount of all money and the face value of all securities held
as a debt service fund for the extinguishment of obligations
other than those deductible under this subdivision.
(8) All other obligations which under the provisions of law
authorizing their issuance are not to be included in computing
r"
the net debt of the municipality. "
-73-
r1
el
n
CITY OF FRIDLEY, MINNESOTA -
PROPERTY TAX RATES PER $1 ,000 OF ASSESSED VALUE AND TAX LEVIES
ALL OVERLAPPING GOVERNMENTS
YEARS 1969 THROUGH 1978 ___
il
TAX RATES
n
School School School School
District District District District
Year City No. 11 No. 13 No. 14 No. 16 County
71
1969 43.60 Mills 265.66 Mills 180.74 Mills 257.96 Mills 244.28 Mills 71 .77 Mills
1970 45.30 297.66 209.33 287.42 247.72 68.99
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 " 71
�� 29.49 ��
1975 14.88 60.19 54.12 60.33 66.05* 22.22
1976 14.76 55.27 49.16 55.18 61 .60* 22.16
1977 14.78 58.40 47.26 54.65 63.62* 22.21
1978 15.05 55.84 46.53 54.26 61 .68* 24.40 " 7
*Vocational/Technical District No. 916 included in District No. 16.
This table reflects the new method of determining assessed valuations as required 71
by 1971 Legislation. This change results in an assessed valuation of approximately
35% of market value instead of approximately 11% under the previous formula. 71
TAX LEVIES
024 $1 ,415,055
1969 $ 859,641 $220,614 $1 ,042,996 $2,713,717 $ 634,024
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
1977 2,057,083 360,242 1 ,499,855 3,863,402 1 ,948,613* 3,092,238
1978 2,199,318 355,565 1 ,568,135 3,987,358 2,017,736* 3,569,286
*Includes Vocational/Technical District No. 916.
11
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iI
-74- 11
r Table 15
n
n
ji
1
TOTALS
; Special School School School School
Districts District District District District
Total No. 11 No. 13 No. 14 No. 16
3.06 Mills 384.09 Mills 299.17 Mills 376.39 Mills 362.71 Mills
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 89.04 " 92.87 -`
I-,
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 "
3.43** " 98.52 I. 87.68 95.07 104.04 "
n 3.14** " 98.14 " 89.12 " 96.85 104.27 "
**No Water Shed District in School District No. 11 .
P'
Yearly
Total Percentage
Tax Levies Increase
fl $ 60,333
$ 6,946,380 29%
74,934 8,440,955 22%
n 79,236 9,867,472 17%
t 161 ,290 8,167,677 -21%
204,380 8,544,576 5%
297,343 9,750,928 14%
ji 520,369 11 ,384,383 17%
380,806 11 ,962,785 5%
454,078 13,275,511 11%
n 426,450 14,123,848 6%
/'1
r
7 -75-
Table 16 f l
CITY OF FRIDLEY, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING 1
BONDED DEBT AND COMPARATIVE DEBT hATIOS �,
DECEMBER 31 , 1977 nn
it
% of Debt Net Debt
Gross Sinking Net Applicable Applicable �
Governmental Unit Debt Funds Debt to City to City ' l
Direct & Overlapping Debt.
ri
Direct Debt:
City of Fridley $ 6,775,000 $ 2,895,670 $ 3,879,330 100% $ 3,879,330
Overlapping Debt:
School Districts
No. 11 $ 36,735,000* $ 3,259,795 $33,475,205 1 .956 $ 654,775 n
No. 13 5,765,000* 1 ,356,605 4,408,395 31 .402 1 ,384,324
No. 14 4,464,000* 720,557 3,743,443 100.000 3,743,443
No. 16 8,200,145* 2,083,389 6,116,756 45.295 2,770,585 rl
Metro Transit 14,150,000 2,028,978 12,121 ,022 1 .954 236,845 L
Metro Council 34,960,000 19,239,945 15,720,055 1 .814 285,162 fl
Anoka County 645,000 117,665 527,335 23.600 124,451
Vocational/Technical ("7
District No. 916 7,950,000 718,469 7,231 ,531 2.838 205,231 -
Total Overlapping 25 403 $83,343,742 $ 9,404,816 _'
Debt $112,869,145 $29,5
Total Direct and
Overlapping Debt $119,644,145 $32,421 ,073 $87,223,072 �s $13,284,146 r
Ratio and Percentage of Net Debt, Applicable to the City's Taxable Value and Market 71
Value
Direct Overlapping
Total Sebt Debt
Ratio of Net Debt to Taxable Value 1 :11 .01 1 :37.71 1 :15.55 �
Percent of Net Debt to Taxable Value 9.08% 2.65% 6.43% ! 1
Ratio of Net Debt to Market Value 1 :35.79 1 :122.54 1 :50.55
Percent of Net Debt to Market Value 2.79% .81% 1 .98%
Per Capita Debt $415.91 $121 .46 $294.45 '
The above debt excludes the City's share of debt applicable to the Metropolital Council ,
Metropolitan Waste Control Commission, the Metropolitan Airports Commission and the 11
North Suburban Hospital District which is paid from users' fees.
*Does not include State loans. - fl
-76- fl
P.'
1 ` Table 17
II
n
P-1
ii
1 CITY OF FRIDLEY, MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
± i FOR GENERAL BONDED DEBT TO TOTAL GENERAL
I GOVERNMENT EXPENDITURES
,l YEARS 1968 THROUGH 1977
Total Total Ratio of Debt
n Fiscal Debt General Service to
i Year Principal Interest Service Expenditures General Expenditures
i
1968 $45,000 $23,510 $ 68,510 $1 ,217,856 .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
1971 90,000 48,495 138,495 1 ,846,757 .0750 : 1
n1972 60,000 23,520 83,520 1 ,953,180 .0428 : 1
1973 65,000 14,620 79,620 2,341 ,081 .0340 : 1
, 1 1974 25,000 12,685 37,685 2,520,672 .0150 : 1
71 1975 25,000 11 ,885 36,885 2,899,724 .0127 : 1
f
1976 25,000 11 ,073 36,073 3,281 ,818 .0110 : 1
I ; 1977 25,000 10,247 35,247 3,601 ,933 .0098 : 1
n
1
1.--
r
-77-
Table 18 fl
(-1;1
n
' 1
CITY OF FRIDLEY, MINNESOTA 1 1
RATIO OF NET BONDED DEBT
TO PROPERTY VALUES AND NET BONDED DEBT PER CAPITA ti
YEARS 1968 THROUGH 1977
Net Ratio of Net Net Bonded i I
Fiscal Assessed Gross Less Debt Bonded Bonded Debt to Debt Per
Year Population Value Bonded Debt Service Funds Debt Assessed Value Capita n
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 n
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 fl
1972 30,240 28,801 ,865 9,756,000 3,870,814 5,885,186 .2043:1 194
1973 31 ,143 95,588,238 9,852,000 3,801 ,883 6,050,117 .0633:1 194
Li
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 fl
1911 31 ,940 139,227,266 6,775,000 2,958,590 3,816,410 .0274:1 119
Fl
•
! 1
II
11
11
78_ 1 I
7
Table 19
r
' Th CITY OF FRIDLEY, MINNESOTA
R
' i INSURANCE COVERAGE
DECEMBER 31 , 1977
n
iI
All risk, direct physical loss coverage
Building and contents (except liquor stock) - 90% Co-insurance $4,954,972
r, Boiler insurance 500,000
Contractor's equipment 355,161
Signs 16,148
flAll risk, fire and extended coverage - liquor stores and stock 193,000
n Comprehensive liability, including automobiles 250,000/500,000
Bodily injury
Each person 500,000
^ Each occurrence 500,000
Property damage 100,000
Excess liability 1 ,000,000
r Comprehensive and collision, automobile
Passenger vehicles Actual cash value
Other vehicles Stated value
Business interruption, liquor stores 141 ,000
Money and securities, inside and outside
rml premises, all locations 15,000
Workmen's compensation Statutory
nErrors and ommission insurance 1 ,000,000
77 DECEMBER OFFICIALS ANNUAL SALARIES AND SURETY BONDS
i DECEMBER 31 , 1977
Surety
Ili Name Position Salary Bond
rl Nasim M. Qureshi City Manager $34,848 $ 25,000
Virgil C. Herrick City Attorney 15',600** None*
Marvin C. Brunsell City Clerk 26,174 1 ,000
Marvin C. Brunsell Treasurer 26,174 25,000
n Richard N. Sobiech Public Works Director 26,174 None*
James P. Hill Public Safety Director 26,174 None*
Robert S. Hughes Fire Chief 21 ,507 None*
Charles A. Boudreau Parks and Recreation Director 21 ,230 None*
*All employees are covered by a blanket faithful performance bond of 100,000
**Covers first thirty hours per month of basic service, balance billed
IT at $40 per hour.
r•
ii
-79-
Table 20 I
CITY CAPITAL IMPROVEMENT FINANCING POLICY
(.1■1
The policy of the City of Fridley regarding financing of major capital n
improvements is as follows: I +
STREET, CURB AND GUTTER, SIDEWALK AND STORM SEWER IMPROVEMENTS:
It is the policy of the City to assess 100% of the cost of street surfacing,
curb and gutter improvements and storm sewer improvements against benefited
properties, less aid for construction received from the State of Minnesota. Fl
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. n
WATER AND SEWER IMPROVEMENTS:
Water and sewer lateral improvements are 100% assessed against benefited fl
properties. Properties owned by tax exempt 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 Fl above policy has been the cost of looping certain water system main lines
which benefited no particular properties. This unassessed portion of the
improvement cost is being financed by the Public Utility Fund.
WELLS, RESERVOIRS, PUMPING STATIONS, ETC. : rl
These improvements have been financed from the revenues of the Public Utility
Fund.
ACQUISITION OF PARK LAND, CIVIC CENTER, ETC. : fl
It is the policy of the City to finance small park capital improvements out of
the current General Fund operating budget. It is the policy of the City to
finance major park capital improvements, such as the purchase of large parcels
of land, with general obligation bonds. The City currently has one general
obligation bond issue outstanding. This is for the Civic Center. The balance
outstanding for this issue on December 31 , 1977 was $285,000. ' 1
OTHER CAPITAL IMPROVEMENTS:
It is the policy of the City to finance capital improvements such as fire fl
trucks and public works equipment, etc. from the current General Fund operating
budget. In order to even out the amount budgeted annually for such items, the
City started a Capital Improvement Revolving Fund in 1976. The City appropriated f
funds in the amount of $90,664 for the years 1976 and 1977 for this purpose, and
$42,533 in 1978. 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: n
In past years, it was the policy of the City to use Revenue Sharing Funds primarily �.s
for Capital Outlay items. For the year 1978, approximately 25% of the Revenue
Sharing Funds are budgeted for personal services. One hundred percent of the {�
Anti Recession Funds are budgeted for personal services for the year 1978. The
General Fund is used as the vehicle for budgeting and expenditure of Revenue
Sharing monies.
-80-
CITY OF FRIDLEY, MINNESOTA Table 21
MISCELLANEOUS STATISTICAL INFORMATION
' Date of Incorporation (Village of Fridley) July 1 , 1949
7 Date of Adoption of City Charter September 10, 1957
effective
September 25, 1957
J; Form of Government Council/Manager
Fiscal Year Begins January 1
7
Area of City 11 Square Miles
r1 Bond Rating Aa
I ;
Miles of Streets and Sidewalks
Streets 126.7
Paved 123.0
Other 3.6
Sidewalks 8.2
n
1 Miles of Sewer
Storm 36.5
r Sanitary 97.4
Miles of Water Mains 101 .1
Fire Protection
Number of Stations 1
Volunteer Firemen 34
7 Full-Time Firemen 5
Fire Rating Class 5
n Police Protection
' i Number of Stations 1
Number of Sworn Officers 28
rBUILDING PERMITS
l
Residential Multiple Commercial/
Year No. Value Dwellings Industrial All other Total
!rl 1969 104 $ 2,427,250 $2,060,000 $6,782,500 $2,183,809 $13,453,559
r1 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
n 1972 418 11 ,270,165 9,501 ,531 4,780,947 2,408,115 27,960,758
, I
1973 99 2,507,865 -0- 4,482,184 630,014 7,620,063 P.,
' 1 1974 115 3,025,142 -0- 4,354,649 3,811 ,271 11 ,191 ,062
rm
I 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
I 1977 223 8,805,695 5,170,196 5,596,312 3,271 ,108 22,843,311
-81-
Table 21 rl
one ti ed
Fl
Number of Street Lights 850 —
Number of Traffic Signal Installations 24 it
Number of Other Special Signal Installations 1
Number of Civil Defense Warning Sirens 8 fl
Permanent Employees--As of December 31 , 1977
r
Number
1968 94 fl
1969 104
1970 115
1971 105
1972 109 n
1973 118
1974 123
1975 130* rl
1976 129*
1977 148*
Elections fl
Registered Voters--Last General Election (1976) 16,739
Number of Votes Cast Last General Election (1976) 14,290
Percent (%) Voting 87% 1
Population
1950 Federal Census 3,796
1960 Federal Census 15,182
1965 Special Federal Census 24,789
1970 Federal Census 29,233
rl
1971 Estimated by Metropolitan Council 29,636 _
1972 Estimated by Metropolitan Council 30,240
1973 Estimated by Metropolitan Council 31 ,143 rl
1974 Estimated by Metropolitan Council 32,542
1975 Estimated by Metropolitan Council 32,486
1976 Estimated by Metropolitan Council 31 ,570
1977 Estimated by Metropolitan Council ' 31 ,940 fl
*Includes CETA
II
fl
(.7-
-n
-82- fl
Table 21
Continued
71.„ Parks and Recreation Areas
Developed 444.8 Acres
fl Undeveloped 28.7 Acres
Total 473.5 Acres
P1
City Parks Schools Total
n Number of:
1 Hockey Rinks 13 2 15
General Skating Rinks 17 0 17
Playgrounds 14 9 23
n Swimming Beaches 1 0 1
? ■ Swimming Pools 0 1 1
Wading Pools 0 0 0
n Picnic Grounds 1 0 1
Day Camp Sites 1 0 1
Baseball Diamonds 1 5 6
Softball Diamonds 18 16 34
Outdoor Basketball Courts 18 11 29
Tennis Courts 16 16 32
Horseshoe Courts 9 0 9
r'" Archery Ranges 1 0 1
Permanent Playground Buildings 0 0 0
Permanent Picnic Shelters 8 0 8
n Soccer Fields 1 0 1
Football Fields 1 9 10
r Municipal Water System Source
Primary Source City of Fridley Water Plant
(Wells)--Capacity of 15
n
Million Gallons Per Day
� ! Secondary Source City of Minneapolis
(Mississippi River)--35
71 Million Gallons Per Day
Number of Connections December 31 , 1977 6,870 Connections
Daily Average Consumption (Gallons) 4.1 Million Gallons
r1 System Capacity 15 Million Gallons
Number of Fire Hydrants 1 ,005
r7
Municipal Sewer System
Disposal--Through Metropolitan Waste Control
Commission
Number of Connections 6,954 Connections
Average Daily Flow (Includes Infiltration/Inflow) 3.64 A Million Gallons
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Table 22 fl
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CITY OF FRIDLEY, MINNESOTA
GENERAL INFORMATION 0
LOCATION - TRANSPORTATION fl
The City of Fridley, with a total land area of eleven square miles and an estimated
population of 31 ,940, is located at the north boundary of Minneapolis and Columbia 11
Heights, about eight miles from the Minneapolis central business district. Freight —
service is provided the area by local and interstate truck lines and the Burlington
Northern Railroad, and transportation is available through Metropolitan Transit n
Commission facilities. Highways serving Fridley include Interstate #694 (beltline it
around the metropolitan area) and State Highways #65 and #47. Commercial airline
service is available at Minneapolis-St. Paul International Airport, approximately
twenty-five miles south, and private business aviation facilities are available at Fl
the Anoka County and Crystal Airports, both operated by the Metropolitan Airports
Commission.
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LARGER EMPLOYERS
Larger employers in the City include: 71
No. of
Employer Product or Service Employees
FMC Corporation Pumps and naval ordnance 3,400
Onan Corporation Portable generators, electronic 1 ,650
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equipment
Medtronics, Inc. Electro-medical devices 1 ,400
Unity Hospital Medical services 930 rl
Burlington Northern Railroad Northtown Yards 750 ' 1
Totino's Finer Foods Frozen foods 454
Independent School District #14 Fridley School District 355
Holiday Village North Discount department store 350
rl
Target Stores Discount store, warehouse, accounts 300
payable building
LaMaur, Inc. Cosmetics 300 7 Carter-Day Company Air control equipment 300
Midland Cooperatives Warehousing and oil blending 250
plant �
Minco Products, Inc. Electronic devices 216 rl
Kurt Manufacturing Machine parts 200
Barry Blower Company Air moving devices 200
Strite-Anderson Manufacturing Aluminum die castings 200
71
Safetran Systems Corporation Railroad accessories 200
Holly Shopping Center Retail and service establishments 200
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Table 22
Continued
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�I LIMITED MARKET VALUE
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Fifteen of the largest taxpayers include:
n 1977 Payable 1978
I
Value
Market
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Rank Taxpayer Business Value
1 . F.M.C. Corporation Naval ordnance $13,758,200
^ 2: Onan Corporation Portable electric generators 13,217,600
3. Medtronics, Inc. Electro-medical devices 12,602,100
4. Target Stores Discount store & warehouse, etc. 7,773,300
5. Maurice Fillister Georgetown Apartments 6,261 ,065
6. LaMaur, Inc. Cosmetics 4,934,000
7. Midland Cooperatives Warehousing & oil blending 3,932,500
8. Five Sands Development Meadowrun Apartments 3, 835,030
n 9. Honeymead Lindseed oil & grain products 3,442,400
10. Rice Creek Townhouses Apartments 3,300,000
11 . Carter-Day Air control equipment 3,239,000
n 12. Holiday Village Discount department store 3,221 ,300
13. Black Forest Apartments Apartments 3,168,110
14. Wickes Furniture Furniture sales & Warehouse 2,223,000
15. Totino's Finer Foods Frozen foods 2,062,900
Of the City's total assessed value, approximately 62% is residential (including
apartments, mobile home parks and nursing homes) and 38% commercial , industrial and
utility property.
r,.l FINANCIAL SERVICES
The Fridley State Bank has had deposits as follows as of December 31 each year:
I~ 1974 $10,599,525
11 ,002,894
1975 12,759,779
1977 13,898,431
18,280,875
el Twin City Federal Savings and Loan Association, Minneapolis, has one of its branch
offices in Fridley.
n MEDICAL FACILITIES
Medical facilities in Fridley include Unity Hospital , a 275 bed hospital with an
adjacent clinic (Unity Professional Building) , the Fridley Medical Center, which
r recently completed a $350,000 wing, and two nursing homes, Lynwood Manor and Fridley
Convalescent and Nursing Home.
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EDUCATION
Fridley is served by four school districts, the major portion being within
Independent School District No. 14 (Fridley). The Fridley School District operates
1 six elementary schools, a junior high and a senior high school , employing 262
certified personnel and 93 additional employees in the education of about 6,612
1 students. Grace parochial high school has an enrollment of 1 ,018.
I Colleges and universities, vocational-technical and specialized training schools
are located throughout the metropolitan area within easy commuting distances of
Fridley.
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