Loading...
1979 Annual Financial Report ANNUAL FINANCIAL REPORT of the CITY OF FRIDLEY, MINNESOTA for the year ended DECEMBER 31, 1979 DEPARTMENT OF FINANCE MARVIN C. BRUNSEII, 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 Letter of Transmittal I-XII Auditor's Opinion XIII Certificate of Conformance XIV-XV Elected and Appointed Officials XVI Organizational Chart XVII SECTION II COMBINED FINANCIAL SECTION Combined Balance Sheet - All Funds I 1 Combined Statement of Revenue, Expenditures, and Changes in Fund Balances - All Governmental Fund Types II 2 Statement of Income and Changes in Retained Earnings - Proprietary Fund Type III 3 Statement of Changes in Financial Position - Proprietary Fund Type IV 4 Statement of Cash and Security for Deposits V 5 Statement of Investments VI 6 Bonds Payable - All Funds VII 9 Combined Statement of Delinquent Taxes Receivable by Funds VIII 14 r ■ CITY OF FRIDLEY, MINNESOTA TABLE OF CONTENTS (CONTINUED) Exhibit Number Page SECTION III FINANCIAL SECTION BY FUNDS General Fund Balance Sheet IX 15 Analysis of Changes in Fund Balance X 16 Statement of Revenue - Estimated and Actual XI 17 Statement of Expenditures - Compared with ,r Authorizations XII 19 Special Revenue Funds r- Combining Balance Sheet XIII 22 Combining Statement of Changes in Fund Balances XIV 23 Statement of Revenue and Expenditures XV 24 General Debt Service Fund Balance Sheet XVI 25 Statement of Revenue, Expenditures and Analysis Of Fund Balance XVII 26 Capital Project Funds Balance Sheets XVIII 27 Analysis of Changes in Fund Balance XIX 28 Statement of Revenue and Expenditures XX 29 Special Assessment Funds Balance Sheets XXI 30 Analysis of Changes in Fund Balances XXII 31 I — Statements of Revenue and Expenditures XXIII 32 1 Statements of Cash Receipts and Disbursements XXIV 33 I -- ii CITY OF FRIDLEY, MINNESOTA TABLE OF CONTENTS (CONTINUED) Exhibit Number Page Enterprise Funds Balance Sheets XXV 34 Combined Statement of Income and Changes in Retained Earnings XXVI 35 Combined Statement of Changes in Financial Position XXVII 36 Municipal Liquor Fund Balance Sheet XXVIII 37 Analysis of Changes in Retained Earnings XXIX 38 Statement of Income XXX 39 Statement of Operating Expenses XXXI 40 ...� Statement of Changes in Financial Position - XXXII 41 Public Utility Fund Balance Sheet XXXIII 42 Analysis of Changes in Retained Earnings XXXIV 43 Statement of Income XXXV 44 Statement of Changes in Financial Position XXXVI 45 Christenson Building Fund Balance Sheet XXXVII 46 Analysis of Changes in Retained Earnings XXXVII 46 Statement of Income XXXVIII 47 '— Statement of Changes in Financial Position XXXVIII 47 iii CITY OF FRIDLEY, MINNESOTA TABLE OF CONTENTS (CONTINUED) Exhibit Number Page Trust and Agency Funds Balance Sheets XXXIX 48 Analysis of Changes in Fund Balance XXXX 49 Statement of Revenue and Expenditures XXXXI 50 General Fixed Assets Statement of General Fixed Assets XXXXII 51 Schedule of General Fixed Assets by Functions and Activities XXXXIII 52 Statement of Changes in General Fixed Assets XXXXIV 53 General Long-Term Debt Statement of General Long-Term Debt XXXXV 54 Notes to the Financial Statements Note 1 - Summary of Significant Accounting Policies 55 Note 2 - Pending Litigation 56 Note 3 - Deferred Credit - Metropolitan Waste Control Commission (Public Utility Fund) 57 Note 4 - Pension Plans (All Funds) 57 Note 5 - Leases 60 -� Note 6 - Bonded Debt 60 Note 7 - Revenue Bonds 60 Note 8 - Bond Covenants 61 Note 9 - Industrial Revenue Bonds 61 Note 10 - Vacation and Sick Leave 61 —. iv CITY OF FRIDLEY, MINNESOTA TABLE OF CONTENTS (CONTINUED) SECTION IV STATISTICAL SECTION Table Number Page General Fund Expenditure Analysis by Function Table 1 62 General Fund Revenue by Source Table 2 63 -- Tax Levies and Tax Collections Table 3 64 Assessed Value and Estimated Market Value of all Taxable Property Table 4 65 History of Tax Levies and Mill Rates Table 5 66 "' Statement of Valuations and Levies by Classes of Property (1979 Valuation for Taxes Payable in 1980) Table 6 67 -.� Significant Minnesota Tax Polices Table 7 68 Special Assessment Levies and Collections Table 8 69 Debt Service Requirements - All Funds Table 9 70 -- Summary of Outstanding Bonded Indebtedness Table 9 70 Debt Service Requirements - General Obligation Bonds Table 10 71 .. Assessment Bonds Debt Service Requirements - Permanent Special Assessment Bonds Table 11 72 Debt Service Requirements - Temporary Special Table 12 73 Assessment Bonds Debt Service Requirements - Public Utility Revenue and Water Improvement Bonds Table 13 74 Computation of Legal Debt Margin Table 14 75 Property Tax Rates and Tax Levies - All Overlapping "' Governmental Units Table 15 77 /'1 Computation of Direct and Overlapping Bonded Debt and Comparative Debt Ratios Table 16 78 v CITY OF FRIDLEY, MINNESOTA TABLE OF CONTENTS (CONTINUED) Table Number Page Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Government Expenditures Table 17 79 Ratio of Net Bonded Debt to Property Values and Net Bonded Debt per Capita Table 18 80 Schedule of Insurance in Force Table 19 81 Principal Officials Annual Salaries and Surety Bonds Table 19 81 City Capital Improvement Financing Policy Table 20 82 Miscellaneous Statistical Information Table 21 83 General Information Table 22 86 vi INTRODUCT(°'RY SECTION I'` • May 31 , 1980 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 , 1979 is herewith submitted. ACCOUNTING SYSTEM AND REPORTS The organizational 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 of Minnesota Auditor's Office, and the City Charter. General and Special Revenue, and General Debt Service funds are presented on a modified accrual basis of accounting. All other funds are presented on an accrual basis of accounting. (See NOTES TO FINANCIAL STATEMENTS. ) A complete budgetary system of accounts is maintained for the General and Special Revenue funds: 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 division level . Budget adjustments between City divisions are made upon approval of a resolution by the City Council . The City Charter provides that the City Council shall not have power to increase the total amount of the budget, whether by insertion of new items or otherwise, beyond the estimated revenue unless the actual revenue exceeds such revenue estimates, and in that event not beyond such actual revenue. There is a constant review Process. Expenditures are not approved until it has been determined that 1 ) adequate funds have been appropriated, 2) the expendi- ture is necessary, and 3) funds are available. The City has not borrowed funds during the past year, either on a short- or long-term basis, to meet current operating expenses. I Page 2 May 31 , 1980 City Manager, Mayor and Council Members The City of Fridley has computerized substantially all of its financial - operations. This has been done through the use of computer facilities and programs available through the Local Government Information Systems Association (LOGIS) . ..- LOGIS was formed under the Minnesota Joint Powers Act to provide an organiza- tion through which a number of .municipalities could jointly and cooperatively provide for the establishment, operation and maintenance of data processing -" facilities and management information 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 for payroll , utility billing, financial control , equipment control , fixed asset, and liquor — inventory. Programs have also been developed for special applications. The following is a brief explanation of the purpose of each type of fund used in managing and accounting for City operations. GENERAL FUND �- Putcpo4 e The General Fund was established to account for revenue 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 four operating funds of the City. The other three operating — funds are the Municipal Liquor, Public Utility, and the Christenson Building funds. Commen-ta On December 31 , 1979, the General Fund showed an unappropriated fund balance \of $2,280,353 and an appropriated fund balance of $115,125. — 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. One-third of the total sick leave accumulation for all City employees was used as the basis for estimating the City's liability for sick leave. — The unappropriated fund balance of $2,280,353 is available to finance future City budgets. In actual practice, the bulk of this amount represents working capital for the General Fund operations. The City receives most of its tax revenue 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 borrowing to fund General Fund operating expenditureso The General Fund — balance increased by $560,362 in 1979. Of the $560,362, $363,596 was the result of actual expenditures being under budgeted expenditures; and $175,934 was the result of actual revenue being over the estimate. Revenue exceeded I I -- Page 3 May 31 , 1980 - City Manager, Mayor and Council Members estimates in several areas including license revenue, grants, fines, interest earnings and insurance rebates from the State of Minnesota 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. Expenditures - were under the budget in several areas. For additional detail , see Exhibits XI and XII. In the financial statements which follow, revenue is recorded by source while expenditures are recorded by division. Included in intergovernmental revenue in the statement of revenue are payments received from the State Property Tax Relief Fund for Homestead Credit. A plan of financial operations of the General 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. Revenue received for General Fund operations totaled $4,819,893 in 1979, an increase of $353,228, or 7.9% over the previous year. The following table represents an analysis of the major revenue sources for the General Fund for __ the years 1979, 1978 and 1977. 1979 1978 1977 Revenue Source Budget Actual Actual Actual General Property Taxes $1 ,899,500 $1 ,954,651 $1 ,846,370 $1 ,703,364 --, Special Assessments 5,600 7,026 9,362 5,116 Licenses and Permits 178,614 211 ,263 179,868 191 ,243 Intergovernmental Revenue 1 ,513,351 1 ,639,892 1 ,576,630 1 ,346,412 - Charges for Current Services 98,056 103,267 104,069 99,755 Fines and Forfeitures 79,000 92,376 85,789 79,166 From Use of Money and Property 89,000 182,414 133,386 88,042 Interfund Transfers 417,500 417,000 388,628 384,743 Other Revenue 158,700 212,004 142,563 142,594 Prior Year's Fund Balance 204,638 -0- -0- -0- - Total $4,643,959 $4,819893 $4,466,665 $4,040.435 Expenditures for general governmental operations totaled $4,280-,363 in 1979, an __ increase of $308,547, or 7.8% over 1978. Expenditure by Function General Government $ 631 ,386 $ 586,836 $ 572,381 $ 484,663 - Public Safety 1 ,538,798 1 ,499,660 1 ,446,302 1 ,239,730 Civic Center 126,014 121 ,937 102,444 109,647 Engineering and Inspection 359,340 322,167 353,833 311 ,092 _ Highways 735,760 699,297 674,761 617,650 Naturalist 74,300 65,598 152,988 152,275 Parks 716,744 716,327 371 ,027 426,256 Recreation 317,774 268,541 298,080 260,620 Reserve for Contingencies 143,843 -0- -0- -0- Total $4,643,959 $4,280.363 $3,971 .816 $3,601 ,933 __ III Page 4 May 31 , 1980 City Manager, Mayor and Council Members — Levy Limitations Minnesota Levy Limit 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 Wimited to 6% 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 the years 1980, 1979, 1978 and 1977. Shown by Year Collectible 1980 1979 1978 1977 Authorized Levy $2,301 ,446 $1 ,993,192 $1 ,869,304 $1 ,756,263 Base Adjustment 82,946 294,889 -0- -0- Plus Allowable Special Levies 442,060 328,580 339,266 398,149 _ Total Allowable Levy $2,826,452 $2,616,661 $2,208,570 $2,154,412 Actual Levy 2,512,176 2,348,124 2,199,318 2,057,083 Excess Not Used $ 314,2276 $ 268,537 $ 9,252 1o� 973 29 — The City is operating within the authorized levy limitation. For the taxes collectible in the year 1979, the City was $268,537 under the levy limitation and will be $314,276 under the limitation for 1980. — Fiscal Vicespatz i tLes 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 40% of all new commercial and industrial _ property valuations in the seven-county metropolitan area. In turn, valuation from this "pool " is to be redistributed to taxing jurisdictions according to specific criteria. _ lthough 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 $7,376,217 for the taxes collectible in 1979. — Tax Increment V4tiz-i.ct The City Council took action on May 7, 1979 to form a Tax Increment District. The Fridley Housing and Redevelopment Authority has also been reactivated. The Authority has been reactivated for the purpose of administering the Tax Increment project. The project consists of the possible redevelopment of properties located — near the center of the City, and near the Fridley Civic Center. The creation of the Tax Increment District has the effect of lowering the assessed valuation of the City that can be used for other purposes by $954,050 for taxes collectible — in 1980. IV Page 5 May 31 , 1980 City Manager, Mayor and Council Members SPECIAL REVENUE FUNDS Pu'.po4 e Special Revenue funds are used to account for revenue derived from specific taxes or other earmarked revenue sources. They are usually required by Statute, Charter provisions or local ordinance to finance particular functions or activities of government. Munic Lpa e 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 earmarked for seal coating projects, or the City's share of sidewalk or street improvement projects. — Revenue Sha.wing Fund The Revenue Sharing Fund was established to account for the revenue received from the Federal Government in accordance with the "State and Local Fiscal Assistance Act of 1972." Expenditure of these funds can be made only in accordance with the provisions of that act. The City's share of these Revenue Sharing funds for the year 1979 was $224,478. Revenue Sharing funds are transferred from the Revenue Sharing Fund to the General Fund where the actual expenditures are budgeted. STEP Fund The STEP Fund was set up to account for phase II of the Selective Traffic Enforcement Program. The program is being funded by a grant from the State of Minnesota and City funds. Teen Center. Fund The Teen Center Fund was set up to account for the revenue and expenditures associated with the operation of a teen center and teen dances. Community Development Bloch Grant A $140,000 Community Development Block Grant was approved for the City of Fridley in 1977. Funds are received from HUD as money is spent, and HUD is billed. Of the $140,000 grant, $93,500 is scheduled for home rehabilitation grants, $20,400 for housing maintenance, $21 ,000 for administration, and $5,100 for a resource center. V Page 6 May 31 , 1980 City Manager, Mayor and Council Members Lange Fam 2y Home Ownens hip Fund A grant of $120,000 was approved in 1979 by HUD for the City of Fridley, The purpose of the grant is to facilitate home ownership for large, low-income families. GENERAL DEBT SERVICE FUND Putpose — The General Debt Service Fund accounts for money devoted to the payment of interest and principal on long-term general obligation debt (other than Special Assessment Debt Service) . — This fund is used for the accumulation of monies for payment of general obli- gation bonds and interest thereon. 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 , 1979, $230,000 was outstanding on this bond issue. — CAPITAL PROJECT FUNDS Punpos e Capital Project funds receive and disburse monies used for acquisition of — capital facilities other than those financed by Special Assessments and Enterprise funds. Capita Impnovement Fund This fund was established to account for the revenue and expenditures of a revolving-type Capital Improvement Fund. No expenditures have been made from this fund to date. I4&tnd4 a6 Peace This fund was established to account for the Islands of Peace Project. A $150,000 grant has been received from the State of Minnesota for the purpose of — constructing a shelter building. This project is substantially complete. North Path 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. VI — Page 7 May 31 , 1980 City Manager, Mayor and Council Members Locke Punk Fund This fund has been set up to account for three separate trail grants. Grants in the amounts of $5,000, $38,000 and $40,240 for trail systems in Locke Park have been approved by the State. Seams Fund This fund was set up to account for the receipts and disbursements relating to the purchase of park land formerly owned by Sears Roebuck. The City received — a LAWCON grant of $206,625 in 1979 for the purchase of the property. Additional revenue in the amount of $90,454 was received from the sale of easements, and a $65,000 transfer from the General Fund. — NoAth Pank Visitation Centetc Fund This fund was set up to account for the receipts and disbursements relating to — the construction of a Visitation Center Building in North Park. A grant of $365,000 has been approved by the Metropolitan Council for this project. $30,000 was received in 1979. Garage ConAttuction Fund This fund was set up to account for the receipts and disbursements relating to constructing an addition to the City Garage. The project is being financed by a transfer of $26,700 from the General Fund, a transfer of $17,540 from the Public Utility Fund, and a loan of $41 ,313 by the Public Utility Fund which will be repaid by users of the garage facility over a three-year period. ENTERPRISE FUNDS Putcpo4s e Enterprise Funds account for the financing of services to the general public in which all or most of the cost involved is paid in the form of charges by the users of such a service. In the City of Fridley, Enterprise Funds are used to account for the operation of the Public Utility System, the municipal liquor stores, and the operation of a small shopping center. Except for ownership, Enterprise Funds bear a close resemblance to privately-owned utility or service enterprises. Muvi i.c Lpat L-.quotc Fund The Municipal Liquor Fund was established to account for the operation and financing of the two City-owned municipal liquor stores. One is located at 6289 Highway 65; the other is located at 6586 University Avenue Northeast. The City owns the land, building and fixtures at the Highway 65 location. The City leases the building at the University Avenue location. A new lease was negotiated in 1978 for the University Avenue location. VII Page 8 May 31 , 1980 City Manager, Mayor and Council Members — Shown below is a summary of liquor store operations for the years 1979, 1978, 1977, 1976 and 1975: 1979 1978 1977 1976 1975 Sales $1 ,461 ,144 $1 ,323,462 $1 ,160,937 $1 ,061 ,562 $1 ,100,224 Gross Profit 275,862 260,941 228,106 214,480 231 ,768 Net Profit 117,404 119,607 98,681 98,963 90,939 _ Transfers to the General Fund $ 85,000 $ 85,000 $ 85,000 $ 85,000 $ 75,000 Retained earnings of the Municipal Liquor Fund were $774,349 on December 31 , 1979, compared to $741 ,933 on December 31 , 1978. Pubti.c UtU ty 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 , 1979, $105,250 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 $420,000 for this bond issue was outstanding on December 31 , 1979. Although deferred tax levies are set forth in the resolution for r^' 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 $494,427 represents the City's share of the equity in the Minneapolis Sewer System _ which was acquired by the Board on January 1 , 1971 , the balance of the reserve capacity charges which were advanced to the Commission during 1971 and 1972, and final cost allocation from 1978. The reserve capacity charges of $45,684 at December 31 , 1979 will be repaid with interest directly to the City — over the next ten 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 assets for the Water and Sewer Distribution System, originally financed by special assessments, were transferred from General Fixed Assets to the Public — Utility Fund in 1978. Additional Fixed Assets were transferred in 1979. Those improvements to the utility system paid for or financed directly by the Public Utility Fund have always been carried in the Public Utility Fund and depreciated. The City Council has a policy of not depreciating water and sewer lines paid for by special assessments. The reasoning for this is that Fridley is still a young community. The original water and sewer lines have not been fully paid for by the property owners. To require these same property owners to pay for the lines by special assessments and also via their utility bills would require the same customers to pay twice for the system. If depreciation were charged on the water and sewer lines financed by special assessments, the income of the Public Utility Fund would have been $203,334 less. VIII —' Page 9 _ May 31 , 1980 City Manager, Mayor and Council Members The Public Utility Fund has transferred monies to the Special Assessment Debt Service Funds to pay principal and interest on some bond issues although theres is no legal requirement to do so. As a result, the City considers such transfers as direct charges against retained earnings and not against income. Retained earnings on December 31 , 1979 Were $13,811 ,353 compared to $13,554,769 on December 31 , 1978. On December 12, 1977, the City Council took action to increase sewer rates by 10.3% for all classes of customers. It is expected that the Public Utility Fund will be able to operate on a self-sustaining basis for at least another year before another rate adjustment is necessary. Shown below is a summary of operations of the Public Utility Fund for the years 1979, 1978, 1977, 1976 and 1975: 1979 1978 1977 1976 1975 Water Account Operating income $621 ,856 $615,741 $650,272 $707,872 $554,174 Operating expenses 513,356 472,763 440,440 460,948 419,532 Operating income $108,50Q $l42.97B mum $.246.924 $134,642 Sewer Account Operating income $772,724 $788,718 $625,924 $579,091 $615,086 Operating expenses 724,148 827,225 698,712 647,182 581 ,386 Operating income (loss) _148,576 $(38,507) $(72.788) $( 8.091 ) $ 33,700 Ch 4. tewson Bonding Fund On September 1 , 1978, the City entered into a lease/option agreement with 0.H. Peterson, Jr. for the property known as the Christenson Building. The property consists of 2.66 acres of land, an older shopping center building, a house, and a cement block commercial garage building. The initial lease ran until July 31 , 1979. The lease contained provisions for two one-year extensions. The City exercised the option for the first one-year extension. The lease agreement also provided that the City has the option to purchase the property for $275,000. The purpose of the City entering into the lease agreement with _ Dr. Peterson is to hold the property together as one parcel pending possible redevelopment (see comments under Tux Inetcement V-us tLct) . The City is currently operating the property as a shopping center. The City pays $1 ,700 month rent plus all other operating expenses, and in turn collects rent from -- the tenants. TRUST AND AGENCY FUNDS Trust and Agency Funds account for assets held by the City as a trustee or agent for individuals, private organizations, and other governmental units. IX Page 10 May 31 , 1980 City Manager, Mayor and Council Members '- The Trust and Agency Fund maintained by the City is for the purpose of holding escrow deposits relating to industrial development revenue bond and mortgage issues. SPECIAL ASSESSMENT FUNDS Pufcpo4 e — Special Assessment Funds are employed to finance and account for the construc- tion 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 distinguishes them from improvements which benefit the entire commu- nity and which are paid for out of general revenue or through the issuance of general obligation bonds. — Comments The City employs the practice of issuing temporary three-year bonds to finance the improvements during the construction period of projects. The temporary bonds usually are in force past the time the special assessment rolls are adopted by the City Council . Permanent bonds are normally issued after the assessment rolls have been approved by the City Council and after the initial prepayments of assessments have been made by property owners. This practice allows the City to keep the amount of permanent bonds issued by the City to -- a minimum. Construction in progress is shown in the General Fixed Asset Group of Accounts. Spec,iat A44e64men-4 Revo.ev-Lng Fund The purpose of this fund is to provide temporary financing for small _ improvement projects. SpecLat A44e64ment4 ConztnuctLon Fund The transactions accounted for in the Special Assessment Construction Funds are the receipt of bond proceeds and the disbursement of the proceeds for construction work performed. Spec La C. A4s4 easmen-s Debt Service Fund The Special Assessments Debt Service Funds are used to account for the — collection of assessments against benefited property owners and the disbursement of assessment collections for the payment of bonds and interest thereon. f,. X Page 11 May 31 , 1980 City Manager, Mayor and Council Members GENERAL FIXED ASSETS GROUP OF ACCOUNTS Puhpo4s e General Fixed Assets are those fixed assets of a governmental jurisdiction which are not accounted for in an Enterprise Fund. To be classified as a fixed asset in this cateogry, a specific piece of property must possess three attributes: 1 ) it must be tangible in nature, 2) it must have a life longer than the fiscal year, and 3) it must be of significant value. GENERAL LONG-TERM DEBT GROUP OF ACCOUNTS Putpo4e General obligation bonds, and other forms of long-term debt supported by general revenue, are obligations of a governmental unit as a whole and not its individual constituent funds. Moreover, the proceeds of such debt may be spent on facilities which are utilized in the operation of several funds. For these reasons, the amount of unmatured long-term indebtedness which is backed by a full faith and credit of the City is accounted for and reported in a separate self-balancing group of accounts entitled "General Long Grou p of Accounts. " The group includes (in addition to conventional term debt) general obligation bonds, time warrants and notes which have a maturity of more than one year from date of issuance. Comments As of December 31 , 1979, the long-term debt of the City consisted of $230,000 in definitive bonds issued for the purpose of financing the Civic Center, -- and $65,836 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 fund's average cash balance. During the year 1979, the interest earnings totaled $841 ,030. This is an increase of $149,963 over the $681 ,067 earned in the year 1978. BOND RATING The City's current bond rating is Aa. This rating was initially awarded for the Improvement Bond Sale held May 16, 1977 and was continued for the $1 ,755,000 bond issue dated May 1 , 1980. This bond issue was to refund temporary three-year improvement bonds or to finance construction projects already underway. The 1980 issue will be repaid entirely from special assess- .... ments. The City previously held an A-1 bond rating which was awarded for the first time on March 1 , 1975. XI Page 12 May 31 , 1980 City Manager, Mayor and Council Members __ PENSIONS - Comments Employees in the City of Fridley are covered by five pension plans: 1 ) Fridley Fire Relief Association for Volunteer Firefighters; 2) Fridley Police Pension Association, for Police Officers hired prior to December 15, 1975; 3) Public Employees Retirement Police and Fire Plan, covering the City's — full-time Firefighters and newly-hired Police Officers; 4) the Basic Public Employees Retirement Plan, which covers certain other City civilian employees; and 5) Coordinated Public Employee Pension Plan, which covers the balance of — the City civilian employees. The employees covered by the Coordinated Public Employees Retirement Plan are also covered by Social Security. — The City is currently making all contributions required by law. For additional background information on the pension plans covering City employees, see NOTES TO THE FINANCIAL STATEMENTS. — Independent Audit Section 7.13 of the City Charter requires an annual audit to be made of the books of account, financial records, and transactions of all administrative departments of the City by a certified public accountant or the State Auditor's Department of the State of Minnesota. This requirement has been complied with and the opinion of the George M. Hansen Company, Certified Public Accountants, is included with this report. know dg emen t (::: ot e preparation of this report on a timely basis could not be accomplished — thout the efficient and dedicated services of the entire staff of the nance Department. I want to express my special appreciation to Sid Inman, an Chri stianson and Kathleen Williams for their assistance. _ ry truly yours, /dill V n C. Brunsel Asst. City Mgr./Fin. Dir. — XII — GEORGE M. HANSEN COMPANY Certified Public Accountants SOUTH PLAZA BUILDING MINNEAPOLIS, MINNESOTA 55415 ACCOUNTANTS ' REPORT To The City Council City of Fridley, Minnesota We have examined the financial statements of the various funds and account groups of the City of Fridley, Minnesota for the year ended December 31, 1979, -- listed in Sections II and III of the foregoing table of contents. Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the aforementioned financial statements present fairly the financial position of the various funds and account groups of the City of Fridley, Minnesota at December 31, 1979, and the results of operations of such funds and the changes in financial position of the proprietary funds for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Our examination did not include the statistical information presented in Section IV. (2.194.7( June 27, 1980 XIII Certificate of Conformance - in Financial Reporting Presented to Ctt of d.le J IT•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. i..` ■014 p .7 7 dWjr� J tive Director / = i =. •• Date OCtobQx12.,1977 XIV 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 our 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 an easily readable and efficiently organized comprehensive Annual Financial Report, whose contents conform to industry standards. Such reports must satisfy both generally accepted accounting principles and applicable — legal requirements. A Certificate of Conformance is valid for a period of three years subject to — two Annual Reviews. Our Annual Financial Report for the fiscal year ended December 31 , 1978 successfully passed its required Annual Review. We believe our current report continues to conform to Certificate of Conformance Program requirements, and we are submitting it to MFOA for another required Annual Review." XV CITY OF FRIDLEY, MINNESOTA ELECTED AND APPOINTED OFFICIALS DECEMBER 31, 1979 ELECTED OFFICIALS _ Term of office expires January Elected '- Mayor - William J. Nee 1981 Council Robert L. Barnette, Councilmember-at-Large 1981 .- Cheryl Lee Moses, Ward I 1982 Dennis L. Schneider, Ward II 1980 Edward J. Fitzpatrick, Ward III 1979 Effective January 1980 Mayor - William J. Nee 1981 Council Robert L. Barnette, Councilmember-at-Large 1981 Cheryl Lee Moses, Ward I 1982 Dennis L. Schneider, Ward II 1983 Edward J. Fitzpatrick, Ward III 1982 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 D. Aldrich Public Works Director - John Flora Division Heads City Assessor - Mervin Herrman Accounting Officer - Sidney Inman Liquor Stores Manager - Robert L. McGuire Public Works Superintendent - Ralph S. Volkman Community Development Director - Darrel G. Clark -- Civil Defense Director - Robert D. Aldrich City Planner - Jerrold Boardman XVI COMBINED FINANCIAL SECTION n r B, ; I„ I,.•"• �: $ i i y 1 • I I I I I I I I 1 / I I I I I I I 1 1i) I I ) CITY OF FRIDLEY, MINNESOTA COMBINED BALANCE SHEET EXHIBIT I ALL FUNDS AND ACCOUNT GROUPS DECEMBER 31, 1979 Proprietary Governmental Fund Types Fund Type Trust & Agency Account Groups Total General Industrial General General Special Debt Capital Special Revenue Fixed Long Term December 31, December 31, General Revenue Service Project Assessment Enterprise Bonds Assets Debt 1979 1978 ASSETS* Cash (deficit) $ (355,258) $ 190,534 $ 1,851 $(98,445) $ (124,774) $ ( 45,478) $17,254 $ (414,316) $ (57,942) Investments, at cost U.S. Government and other short term obligations (Exhibit VI) 1,309,428 972,544 62,532 326,976 5,256,803 2,697,956 10,626,239 10,396,311 City of Fridley temporary bonds (Exhibit VI) 1,620,000 1,620,000 545,000 Accounts receivable 557,338 389,741 137,250 2,880 728,168 1,815,377 1,488,192 Taxes receivable 21,424 378 409 22,211 15,528 Special assessments receivable 7,919 3,602,810 41,313 3,652,042 3,771,441 Inventories, at cost 19,738 177,543 197,281 176,102 Prepaid expenditures or expenses 107,150 47,438 154,588 127,893 Fixed assets, at cost less accumulated 8epreciation 12,003,718 $17,727,734 29,731,452 27,709,068 Amount available in General Debt Service Fund $ 64,383 64,383 60,071 Amount to be provided by future taxes 231,453 231,453 295,746 Unassessed construction costs 1,145,000 1,145,000 500,000 Total assets $3,287,739 $1,552,819 $64,761 $366,190 $9,882,719 $15,650,658 $17,254 $17,727,734 $295,836 $48,945,191 $45,027,410 ■j' LIABILITIES, RESERVES AND FUND EQUITY 1 Liabilities Accounts and contracts payable $ 861,209 $ 5,000 $ 4,911 $ 98,327 $ 23,670 $16,243 $65,836 $ 1,075,196 $ 1,235,899 Deposits payable 1,709 143,141 185 145,035 170,480 Deferred revenue or income 29,343 $ 378 409 493,854 523,984 531,679 Bonded indebtedness - future maturities - Definitive bonds Principal (Exhibit VII) 4,169,750 525,250 230,000 4,925,000 5,840,000 Temporary bonds (held by City of Fridley) Principal (Exhibit VII) 1,620,000 1,620,000 545,000 Total Liabilities $ 892,261 $ 5,000 $ 378 $ 5,320 $6,031,218 $ 1,042,959 $16,243 $ -0- $295,836 $8,289,215 $ 8,323,058 Reserves Fund equity $17,727,734 $17,727,734 $15,637,067 Investment in general fixed assets Retained earnings $10,166,680 10,166,680 10,166,680 Contributions 1,837,038 -0- 1,837,038 1,905,321 Investment in fixed assets 2,603,981 2,603,981 2,226,343 Unappropriated Fund balance Appropriated $ 115,125 $1,449,658 $64,383 $ 59,117 $3,851,501 $ 1,011 5,540,795 4,794,702 Unappropriated 2,280,353 98,161 301,753 2,680,267 1,974,239 Total reserves and fund equity $2,395,478 $1,547,819 $64,383 $360,870 $3,851,501 $14,607,699 $ 1,011 $17,727,734 $ -0- $40,614,090 $36,704,352 Total liabilities, reserves and fund equity $3,287,739 $1,552,819 $64,761 $366,190 $9,882,719 $15,650,658 $17,254 $17,727,734 $295,836 $48,945,191 $45,027,410 *A portion of the assets are restricted for debt retirement. See Public Utility Fund financial statements. See accompanying Notes to Financial Statements. EXHIBIT II CITY OF FRIDLEY, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FINK) BALANCES ALL GOVERNMENTAL FUND TYPES DECEMBER 31, 1979 Governmental Fund Types General Trust I4 Special Debt Capital Special Agency 1979 1978 General Revenue Service Project Assessment Funds Total Total Revenue Taxes $1,954,651 $34,300 $ 37,024 $2,025,975 $1,919,786 Special assessments levied 7,026 $ 598,618 605,644 84,975 Licenses and permits 211,263 211,263 179,868 Intergovernmental revenue Federal 98,095 98,095 254,886 State 1,457,784 $ 336,117 5,781 6,291 1,805,973 1,460,097 Grants 84,013 334,855 236,625 655,493 549,869 Other 2,748 Charges for current services 103,267 103,267 117,764 Fines and forfeits 92,376 22,189 114,565 85,789 Interest and rents 182,414 81,488 2,792 23,012 389,658 $14,365 693,729 545,877 Unassessed construction costs 500,000 Miscellaneous revenue 212,004 150,274 268,878 631 156 529,279 Total revenue $4,402,893 $ 752,466 $42,873 $453,226 $1,279,343 $14,365 15,340 ,Hmi 6,230,938 Other sources Proceeds of General Obligation Bonds 1,145,000 1,145,000 520,000 Transfers from other funds 417,000 165,241 116,700 203,398 902,339 759,263 N Total revenue and other sources 14,819,893 $ 917,701 $42,873 $569,926 $2,621,741 114,365 $8,92, 494 $7,510,201 1 Expenditures Current General government $ 586,836 Public safety 1,426,776 $ 107,843 $ 586,836 $ 572,381 $13,354 1,547,973 1,479,008 Civic center 121,937 121,937 102,444 Public works 951,415 76,599 $1,074,221 2,102,235 1,863,067 Parks and recreation 985,466 9,493 $462,718 1,457,677 920,755 Debt service Principal $30,000 30,000 545,000 Interest and fiscal charges 8 561 266,228 274,789 296,533 Total expenditures 14,072,430 $ 193,945 13$;551 )162,718 $1,340,443 $13,354 $6,121,447 $5,779,188 Other uses Transfers to other funds 1. 207,933 $ 355,761 $ 248,344 $`812,036 $ 661,307 Total expenditures and other uses $4,280,363 $ 549,696 $38,561 $462,718 $1,588,793 $13,354 $6,,933,485 $6,440,495 Revenue over (under) expenditures $ 539,530 $ 368,005 $4,312 $107,208 $1,038,948 $ 1,011 $2,059,014 $1,069,706 Adjustments to fund balance 20,832 (105,618) 608 (522,715) (606,893) 127,294 Net increase (decrease) in fund balance during year $ 560,362 $ 262,387 $ 4,312 $107,816 $ 516,233 $ 1,011 $1,452,121 $1,197,000 Fund balance, January 1 1,835,116 1,285,432 60,071 253,054 3,335,268 6,768,941 $5,571,941 Fund balance, December 31 $2,395,478 $1,547,819 $64,383 $360,870 $3,851,501 $ 1,011 $8,221,062 $6,768,941 See accompanying Notes to Financial Statements. • I A) 1 1 1 1 1 1 1 v, 1 , , , I , ' 1 1 1 EXHIBIT III CITY OF FRIDLEY, MINNESOTA STATEMENT OF INCOME AND CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPE (ENTERPRISE FUNDS) YEARS ENDED DECEMBER 31,1979 AND 1978 1979 1978 Sales and cost of sales Sales $ 1,461,144 $ 1,323,462 Cost of sales 1,185,282 1,062,521 Gross profit $ 275,862 $ 260,941 Operating income Water sales and sewer rents $ 1 ,313,764 $ 1,319,213 Rental income 45,527 14,805 Other 82,339 85,246 Total operating income $ 1,441,630 $ 1,419,264 Operating expenses $ 1,481,112 $ 1,494,558 — Operating income $ 236,380 § 185,647 Other income and (expense) Interest on investments $ 173,467 $ 153,687 Other interest 35,637 20,600 Other income 21,494 17,779 Interest expense (24,273) (28,964) — Fiscal agent charges ) 163) Total other income and (expense) 6,2O9 , — Net income $ 442,496 $ 348,586 Retained earnings January 1 14,298,344 3,744,255 $14,740,840 $ 4,092,841 Adjustments Contribution of water and sewer lines $10,166,680 '- Elimination of other liability-Deferred credit 123,118 Add - Current value credits received $ 13,033 13,158 -- Write-off of accounts payable 1,722 503 Deduct - Transfers to other funds (90,301 ) (97,956) Retained earnings December 31 $14,665,294 $14,298,344 . See accompanying Notes to Financial Statements. -3- EXHIBIT IV CITY OF FRIDLEY, MINNESOTA STATEMENT OF CHANGES IN FINANCIAL POSITION em PROPRIETARY FUND TYPE (ENTERPRISE FUNDS) YEARS ENDED DECEMBER 31, 1979 AND 1978 SOURCE OF FUNDS 1979 1978 Operations: Net income for the year $442,496 $348,586 Items not requiring current outlay of funds Depreciation 115,649 118,358 $558,145 $466,944 Decrease in receivables -0- 47,182 Sale of fixed assets -0- 1 ,797 Adjustment of accounts payable 1,722 503 Metropolitan Waste Control Commission credits received 13,033 13,158 Total source of funds $572 900 $529,584 - APPLICATION OF FUNDS Adjustment of prior year interest $ 133 $ -0- Purchase of property and equipment 47,367 22,709 j Decrease in other liabilities Deferred income 1,415 1,579 Deposits payable (45) 668 - Bonds payable less portion due within one year 1 5,241 Transfers to sinking accounts 82,641 83,316 Transfers to other funds 90,301 97,956 _ Increase in working capital 351,087 318,115 Total application of funds $572,900 $529,584 Various elements of net increase in working capital Cash and investments $206,439 $334,931 Accounts and contracts receivable 10,045 13,583 Inventory 5,907 17,897 Prepaid expenses 6,330 39,028 Accounts payable 80,779 (81 ,808) ,-- Bonds payable within one year (1 ) (5,241 ) Deferred income 275 (275) Due from other funds 41,313 -0- Increase in working capital $351 ,087 $318,115 See accompanying Notes to Financial Statements. -4- EXHIBIT V CITY OF FRIDLEY, MINNESOTA STATEMENT OF CASH AND SECURITY FOR DEPOSITS DECEMBER 31, 1979 Face amount of securities pledged as Cash collateral Checking account - Fridley State Bank, Fridley, Minnesota .- General Account $ (420,116) $ 200,000* Petty cash and change fund 5,800 Total cash $ (414,316) Certificates of Deposit (included in investments) Farmers &Mechanics Savings Bank, Minneapolis $ 575,000 720,100* -- Fidelity Bank & Trust Company, Minneapolis 1,200,000 $2,675,000* First Federal Savings & Loan, Roseville 100,000 First National Bank, Minneapolis 100,000 1,205,000* Hennepin Federal Savings & Loan, Minneapolis 700,000 781,094* Midwest Federal, Saint Anthony 160,000 400,000* Minnesota Federal Savings & Loan, New Brighton 50,000 Northern Federal Savings & Loan, St. Paul 400,000 1,847,244* —' Northwestern National Bank, Minneapolis 1,000,000 1,190,000* Northwestern National Bank, St. Paul 140,000 550,000* Twin City Federal Savings & Loan, Fridley 300,000 298,136* Total invested in certificates of deposit $ 4,725,000 $9,666,574 Government securities 5,901,239 City of Fridley temporary bonds 1,620,000 .— Total investments $12,246,239 *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. -^ See accompanying Notes to Financial Statements. .. -5- EXHIBIT VI .. CITY OF FRIDLEY, MINNESOTA STATEMENT OF INVESTMENTS YEAR ENDED DECEMBER 31, 1979 em Interest .. „' Rate Maturity Cost Certificate of Deposit - Farmers & Mechanics, 10.50% 03/24/80 $ 100,000 Minneapolis Certificate of Deposit - Farmers & Mechanics, 14.10 05/19/80 150,000 Minneapolis "- Certificate of Deposit - Farmers & Mechanics, 13.15 05/28/80 150,000 Minneapolis Certificate of Deposit - Farmers & Mechanics, 13.15 06/30/80 175,000 .. Minneapolis Certificate of Deposit - Fidelity, Minneapolis 6.75 01/24/80 100,000 Certificate of Deposit - Fidelity, Minneapolis 6.75 01/24/80 300,000 Certificate of Deposit - Fidelity, Minneapolis 7.50 01/25/80 100,000 Certificate of Deposit - Fidelity, Minneapolis 7.00 03/11/80 200,000 Certificate of Deposit - Fidelity, Minneapolis 13.35 06/26/80 200,000 Certificate of Deposit - Fidelity, Minneapolis 8.70 07/21/80 200,000 -- Certificate of Deposit - Fidelity, Minneapolis 8.55 07/27/80 100,000 Certificate of Deposit - First Federal Savings & 14.25 05/23/80 100,000 Loan, Roseville .- Certificate of Deposit - First National Bank of 10.75 03/24/80 100,000 Minneapolis Certificate of Deposit - Hennepin Federal Savings & 10.25 01/12/80 200,000 Loan, Minneapolis /7 Certificate of Deposit - Hennepin Federal Savings & 10.25 04/11/80 100,000 Loan, Minneapolis Certificate of Deposit - Hennepin Federal Savings & 9.75 12/23/80 300,000 — Loan, Minneapolis Certificate of Deposit - Hennepin Federal Savings & 9.63 07/26/84 100,000 Loan, Minneapolis — Certificate of Deposit - Midwest Federal 12.75 06/03/80 110,000 Saint Anthony Certificate of Deposit - Midwest Federal . 7.50 02/23/81 50,000 Saint Anthony Certificate of Deposit - Minnesota Federal Savings 7.50 04/08/81 50,000 & Loan, New Brighton Certificate of Deposit - Northern Federal Savings & 10.60 01/18/80 150,000 .- Loan, Saint Paul Certificate of Deposit - Northern Federal Savings & 10.10 07/18/80 150,000 Loan, Saint Paul Certificate of Deposit - Northern Federal Savings & 10.10 07/18/80 100,000 Loan, Saint Paul Certificate of Deposit - Northwestern National Bank, 6.45 01/24/80 150,000 Minneapolis Certificate of Deposit - Northwestern National Bank, 6.65 05/16/80 140,000 Minneapolis Certificate of Deposit - Northwestern National Bank, 6.75 06/24/80 100,000 _- Minneapolis See accompanying Note to Financial Statements. -6- EXHIBIT VI CONTINUED CITY OF FRIDLEY, MINNESOTA STATEMENT OF INVESTMENTS (CONTINUED) YEAR ENDED DECEMBER 31, 1979 Interest Rate Maturity Cost Certificate of Deposit - Northwestern National Bank, 6.82% 07/24/80 $ 100,000 Minneapolis Certificate of Deposit - Northwestern National Bank, 6.90 12/23/80 150,000 Minneapolis Certificate of Deposit - Northwestern National Bank, 6.25 12/16/81 500,000 Minneapolis Certificate of Deposit - Twin City Federal Bank 10.00 04/03/80 100,000 Fridley Certificate of Deposit - Twin City Federal Bank 12.75 06/14/80 200,000 Fridley Farm Credit Bank Bonds 10.07 05/01/80 100,516 Farm Credit Bank Bonds 12.25 09/02/80 200,000 Federal Home Loan Bank Bonds 9.75 08/25/80 100,000 Federal Home Loan Bank Bonds 9.72 08/25/80 200,625 Federal Home Loan Bank Bonds 9.74 08/25/80 175,000 Federal Home Loan Bank Bonds 5.98 11/25/80 306,692 Federal Home Loan Bank Bonds 12.30 11/25/80 200,500 Federal Intermediate Credit Bank Bonds 10.50 02/04/80 200,000 Federal Intermediate Credit Bank Bonds 6.73 04/01/82 100,000 Federal Land Bank Bonds 7.30 10/20/80 100,000 Federal National Mortgage Association 8.70 10/10/80 200,000 Federal National Mortgage Association 8.61 10/10/80 202,618 Federal National Mortgage Association 11 .00 07/11/83 200,000 Federal National Mortgage Association 8.50 09/12/83 100,000 Federal National Mortgage Association 8. 17 04/10/84 100,387 Federal National Mortgage Association 9.03 07/10/84 300,640 Federal National Mortgage Association 9.04 07/10/84 200,578 Federal National Mortgage Association 11.70 10/10/84 239,114 Federal National Mortgage Association 7.55 12/10/84 250,000 Government National Mortgage Association 8.13 07/01/2008 272,911 Government National Mortgage Association 9.00 09/01/2008 246,290 Government National Mortgage Association 7.00 12/01/2008 242,508 Overnight Investments 9.63 Indefinite 415,000 Small Business Loan 8.90 12/16/85 72,021 U. S. Treasury Notes 7.12 11/15/80 200,118 U. S. Treasury Notes 8.75 12/31/80 200,000 U. S. Treasury Notes 7.41 11/15/82 400,124 U. S. Treasury Notes 8.75 12/31/82 275,000 U. S. Treasury Notes 7.95 08/15/86 100,597 City of Fridley Temporary Bonds Storm Sewer No. 125 7.00 09/1/81 10,000 Street Improvement No. 1976-3 7.00 01/15/82 65,000 Street Improvement No. 1975-4 7.00 01/15/82 100,000 Street Improvement No. ST. 1978-1, 2 & 4 7.00 05/15/81 450,000 See accompanying Note to Financial Statements. -7- EXHIBIT VI CONTINUED CITY OF FRIDLEY, MINNESOTA STATEMENT OF INVESTMENTS (CONTINUED) YEAR ENDED DECEMBER 31 , 1979 Interest Rate Maturity Cost Street Improvement No. 1979-1 & 2 7.00% 08/01/82 $ 400,000 -- Water, Sewer and Storm Sewer No. 121 7.00 08/01/82 15,000 Water, Sewer and Storm Sewer No. 126 7.00 08/01/82 20,000 Water, Sewer and Storm Sewer No. 127 8.00 09/15/82 450,000 Water, Sewer and Storm Sewer No. 128 8.00 12/01/82 110,000 Total $12,246,239 Allocated by funds General Fund $ 2,929,428 Special Revenue Funds 972,544 General Debt Service Fund 62,532 Capital Project Funds 326,976 Special Assessment Funds 5,256,803 Enterprise Funds 2,697,956 Total $12,246,239 -- -8- EXHIBIT V: a CITY OF FRIDLEY, MINNESOTA BONDS PAYABLE - ALL FUNDS YEAR ENDED DECEMBER 31, 1979 Issue Interest Maturity Principal Date Rate Date Amount SPECIAL ASSESSMENT DEBT SERVICE FUNDS - DEFINITIVE BONDS r Improvement Bonds of 1960 p January 1, 1981 10/1/60 4.20% 1/1/81 $ 70,000 January 1, 1982 4.20 1/1/82 75,000 Total Improvement Bonds of 1960 Special Assessment Debt Service Fund $145,000 Improvement Bonds of 1962 5Ckb $ 5,000 per year 05/01/62 3.80 02/dl/80-827`T$ 15,000 Total Improvement Bonds of 1962 Special Assessment Debt Service Fund �$ 15,000 Improvement Bonds of 1963 0 $ 35,000 per year 01/1/63 3.80 01/01/81-82/7 -3 1 105,000 Total Improvement Bonds of 1963 Special Assessment Debt Service Fund $105,000 Refunding Bonds of 1964 / U February 1 , 1980 3.40 02/01/80 . 40 000 Total Refunding Bonds of 1964 Special Assessment Debt -- Service Fund $ 40,000 Improvement Bonds of 1965 3d edQ February 1, 1980 05/01/65 3.40 $ 30,000 February 1, 1981 3.40 02/01/81 25,000 $ 25,000 per year 3.50- 02/01/82-85 100,000 February 1, 1986 3.50 02/01/86 20,000 Total Improvement Bonds of 1965 Special Assessment Debt Service Fund — 175,000 See accompanying Notes to Financial Statements. • .. -9r EXHIBIT VII CONTINUED r1 CITY OF FRIDLEY, MINNESOTA BONDS PAYABLE - ALL FUNDS (CONTINUED) YEAR ENDED DECEMBER 31 , 1979 Issue Interest Maturity Principal Date Rate Date Amount SPECIAL ASSESSMENT DEBT SERVICE FUNDS - DEFINITIVE BONDS Improvement Bonds of 1967 $ 40,000 per year 10/01/67 4.40% 01/01/81-82 80,000 $ 30,000 per year 4.50 01/01/83-87 p ,. 150,000 January 1 , 1988 4.50 01/01/88 1 20,000 "- Total Improvement Bonds of 1967 Special Assessment Debt Service Fund $ 250,000 Improvement Bonds of 1972 $150,000 per year 10/01/72 4.60 01/01/81-82 $ 300,000 $ 75,000 per year 4.80 01/01/83-84 150,000 $ 75,000 per year O 5.00 01/01/85-86 150,000 January 1, 1987 5.10 01/01/87 \ 75,000 January 1, 1988 5.20 01/01/88 l 75,000 January 1, 1989 5.20 01/01/89 / 50,000 $ 50,000 per year 5.25 01/01/90-91 100,000 $ 50,000 per year 5.30 01/01/92-94 150,000 Total Improvement Bonds of 1972 Special Assessment Debt Service Fund $1,050,000 Refunding bonds of 1975 (Improvement Bond Portion) d January 1, 1981 3/01/75 6.00 01/01/81 $ 47,250 January 1 , 1982 6.00 01/01/82 47,500 $ 50,000 per year 6.00 01/01/83-84 9 100,000 January 1, 1985 6.00 01/01/85 �j 40,000 $ 45,000 per year 6.00 01/01/86-88 135,000 January 1, 1989 6.00 01/01/89 10,000 Total Refunding Bonds of 1975 Special Assessment Debt Service Fund $ 3793750 See accompanying Notes to Financial Statements. -10- EXHIBIT VII CONTINUE[ TW e CITY OF FRIDLEY, MINNESOTA BONDS PAYABLE - ALL FUNDS (CONTINUED) '- YEAR ENDED DECEMBER 31, 1979 — Issue Interest Maturity Principal Date Rate Date Amount SPECIAL ASSESSMENT DEBT SERVICE FUNDS - DEFINITIVE BONDS Improvement Bonds of 1976 -- February 1, 1980 02/01/76 4.30% 02/01/80 $ 175,000 February 1, 1981 4.50 02/01/81 \ 175,000 February 1, 1982 4.70 02/01/82 175,000 .. February 1, 1983 4.90 02/01/83 75,000 February 1 , 1984 5.00 02/01/84 ' 25,000 ' February 1, 1985 5.10 02/01/85 75,000 February 1, 1986 5.25 02/01/86 25,000 ." February 1, 1987 5.40 02/01/87 25,000 February 1, 1988 5.60 02/01/88 25,000 February 1 , 1989 5.80 02/01/89 25,000 -- February 1, 1990 6.00 02/01/90 25,000 Total Improvement bonds of 1976 Special .. Assessment Debt Service Fund $1,025,000 . Improvement Bonds of 1977 February 1, 1980 05/01/77 3.70 02/01/80 $ 110,000 "' February 1, 1981 3.90 02/01/81 10,000 February 1, 1982 4.00 02/01/82 10,000 February 1, 1983 4.20 02/01/83 10,000 •. February 1 , 1984 4.30 02/01/84 10,000 • February 1, 1985 4.40 02/01/85 110,000 February 1, 1986 4.60 02/01/86 110,000 r., February 1, 1987 4.70 02/01/87 115,000 February 1, 1988 4.80 02/01/88 50,000 February 1, 1989 4.90 02/01/89 50,000 Total Improvement Bonds of 1977 Special Assessment Debt Service Fund $ 985,000 Total Special Assessment Debt Service Funds - Definitive Bonds $4,169,750 .C.. See accompanying Notes to Financial Statements. .. -11• EXHIBIT VII CONTINUED CITY OF FRIDLEY, MINNESOTA BONDS PAYABLE - ALL FUNDS (CONTINUED) YEAR ENDED DECEMBER 31, 1979 Issue Interest Maturity Principal Date Rate Date Amount GENERAL DEBT SERVICE FUND- DEFINITIVE BONDS (CONTINUED) Civic Center Bonds of 1965 -- $ 30,000 per year 05/01/65 3.40% 02/01/80-81 $ 60,000 February 1, 1982 3.50 02/01/82 30,000 $ 35,000 per year 3.50 02/01/83-86 140,000 Total General Debt Service Fund Bonds $ 230,000 Public Utility Fund Definitive Revenue Bonds / Waterworks Bonds of 1965 (W-75) 50,000 per year 05/01/65 3.40 02/01/80-81 $ 100,000 $ 50,000 per year 3.50 02/01/82-87 300,000 February 1 , 1988 3.50 02/01/88 20,000 Total Waterworks Bonds of 1965 (W-75) Public Utility Fund $ 420,000 Refunding Bonds of 1975 (Water Utility Portion) January 1 , 1981 03/01/75 6.00 01/01/81 $ 57,750 January 1, 1982 6.00 01/01/82 47,500 m. Total Refunding Bonds of 1975 (Water Utility Portion) $ 105,250 Total Public Utility Fund Revenue Bonds $ 525,250 Total Definitive Bonds $4,925,000 See accompanying Notes to Financial Statements. -12- EXHIBIT VII CONTINUI 7•t CITY OF FRIDLEY, MINNESOTA BONDS PAYABLE - ALL FUNDS (CONTINUED) YEAR ENDED DECEMBER 31, 1979 Issue Interest Maturity Principal Date Rate Date Amount SPECIAL ASSESSMENT DEBT SERVICE FUND - TEMPORARY BONDS Water, Sewer and Storm Sewer No. 121 08/01/77 7.00% 08/01/80 $ 15,000 Street Improvement Projects ST. 1978-1, ST. 1978-2 and ST. 1978-4 05/15/78 7.00 05/15/81 $ 450,000 Storm Sewer No. 125 09/01/78 7.00 09/01/81 $ 10,000 i Street Improvement Project 1976-3 01/15/79 7.00 01/15/82 $ 65,000 ,.� Street Improvement Project 1975-4 01/15/79 7.00 01/15/82 $ 100,000 Water and Sewer Project No. 126 08/01/79 7.00 08/01/82 $ 20,000 Street Improvement Project 1979.1 and 1979-2 08/01/79 8,00 09/15/82 $ 400,000 P- Water, Sewer and Storm Sewer Project No.127 09/15/79 8.00 09/15/82 $ 450,000 Water, Sewer and Storm Sewer Project No. 128 12/01/79 8.00_ 12/01/82 $ 110,000 Total Special Assessment Debt Service Fund Temporary Bonds $1,620,000 •- Total Bonds Outstanding $6,545,000 See accompanying Notes to Financial Statements. -13- EXHIBIT VIII CITY OF FRIDLEY, MINNESOTA ^ COMBINED STATEMENT OF DELINQUENT TAXES RECEIVABLE BY FUNDS YEAR ENDED DECEMBER 31, 1976 THROUGH 1979 1976 and Funds Exhibit Total Prior 1977 1978 1979 General Fund IX $39,677 $16,156 $2,973 $5,562 $14,986 Capital Improvement Fund XVIII 573 102 69 115 287 General Debt Service Fund XVI 1,066 606 59 108 293 Total $41,316 $16,864 $3,101 $5,785 $15,566 See accompanying Notes to Financial Statements. -14- EXHIBIT IX CITY OF FRIDLEY, MINNESOTA GENERAL FUND BALANCE SHEET DECEMBER 31, 1979 AND 1978 ASSETS 1979 1978 Cash (deficit) $ (355,258) $ 26,242 Investments, at cost 2,929,428 2,074,989 Accounts receivable 42,623 70,006 Taxes receivable Delinquent $ 39,677 $ 44,469 Unremitted 21,424 14,939 Less: Estimated uncollectible (39,677) 21,424 (44,469) 14,939 Special assessments receivable Delinquent 9,137 3,375 Deferred - Principal 7,919 16,020 Less: Estimated uncollectible (9, 137) 7,919 (3,375) 16,020 Accrued interest receivable 514,715 412,870 Inventories, at cost 19,738 16,751 Prepaid expenditures 107,150 86,785 Total assests $3,287,739 $2,718,602 LIABILITIES AND FUND BALANCE Liabilities .., Accounts payable $ 485,892 $ 491,389 Leave payable 375,317 341,921 Deposits payable 1,709 19,217 Deferred revenue - Taxes and special assessments receivables 29,343 30,959 Fund balance Appropriated 115,125 204,638 Unappropriated 2,280,353 1,630,478 Total liabilities and fund balance $3,287,739 $2,718,602 See accompanying Notes to Financial Statements. -15. EXHIBIT X CITY OF FRIDLEY, MINNESOTA GENERAL FUND ANALYSIS OF CHANGES IN FUND BALANCE YEARS ENDED DECEMBER 31, 1979 AND 1978 • .- 1979 1978 Add Revenue $4,819,893 $4,466,665 Accounts payable canceled 2,621 175 Adjustment to gas/oil inventory 2,383 Other adjustments of prior year's balance 403 Adjustment of leave payable 17,808 $4,840,725 $4,469,223 -- Deduct: Expenditures $4,280,363 $3,971 ,816 �'✓ Accounts receivable canceled 2,032 Adjustment of leave payable 18,038 $4,280,363 $3,991,886 Increase in fund balance $ 560,362 $ 477,337 Fund balance, January 1 1,835,116 1,357,779 -- Fund balance, December 31 $2,395,478 $1,835,116 �-�—s See accompanying Notes to Financial Statements. -16- EXHIBIT XI "1 CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF REVENUE YEARS ENDED DECEMBER 31, 1979 and 1978 1979 Budget 1979 1978 As Adopted As Amended Actual Actual General property and other taxes Current ad valorem $1,863,500 $1,863,500 $1,847,971 $1,749,512 „ Delinquent ad valorem 31,000 31,000 30,944 35,454 Tax forfeit 5,000 5,000 9,347 11,846 Fiscal disparities 60,490 42,122 Penalties and interest 5,899 7,436 .. $1,899,500 $1,899,500 $1,954,651 $1,846,370 Special Assessments $ 5,600 $ 5,600 $ 7,026 $ 9,362 Licenses and permits Licenses Contractors $ 8,300 $ 8,300 $ 15,452 $ 12,375 Business 78,239 81,764 105,789 76,882 All other 5,800 5,800 3,041 3,265 Permits 82,750 - 82,750 86,981 87,346 $ 175,089 $ 178,614 $ 211,263 $ 179,868 Intergovernmental revenue C.E.T.A. $ 93,041 $ 93,039 $ 249,385 Civil defense $ 11,020 11,020 5,056 5,501 State aid - maintenance 26,205 26,205 26,490 30,849 Local government aid 988,765 1,038,765 1,103,291 905,499 Homestead Credit 320,058 320,058 328,003 301,617 Grants Federal 7,000 7,000 9,698 34,136 State 17,262 17,262 55,586 46,895 Local $1,370,310 18,729 2,748 -, $1,513,351 $1,639L892 $1,576,630 Charges for current services _ General government $ 11,210 $ 11,210 $ 12,417 $11,897 Public safety 15,624 15,624 21,916 18,858 Conservation of health 19,665 19,665 14,910 20,014 Recreation 51,557 51,557 53,936 53,300 $ 98,056 $ 98,056 $ 103,179 $ 104,069 Fines and forfeitures $ 79,000 $ 79,000 $ 92,376 $ 85,789 See accompanying Notes to Financial Statements. -17- EXHIBIT XI CONTINUED CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF REVENUE (CONTINUED) YEARS ENDED DECEMBER 31, 1979 and 1978 1979 Budget 1979 1978 As Adopted As Amended Actual Actual Revenue from use of money and property Interest on investments $ 85,000 $ 85,000 $ 166,055 $ 121,638 -- Rents 4,000 4,000 16,359 11,748 $ 89,000 $ 89,000 $ 182,414 $ 133,386 _ Transfers from other funds Liquor Fund $ 85,000 $ 85,000 $ 85,000 $ 85,000 ■-''" Revenue Sharing Fund 217,000 217,000 217,000 186,520 Other funds 115,500 115,500 115,000 117,108 $ 417,500 $ 417,500 $ 417,000 $ 388,628 - Other revenue $ 122,200 $ 158,700 $ 212,092 142,563 Prior year's fund balance $ 94,750 $ 204,638 Total revenue $4,351,005 $4,643,959 $4,819,893 $4,466,665 See accompanying Notes to Financial Statements. -18- EXHIBIT XII CITY OF FRIDLEY, MINNESOTA "'1 GENERAL FUND - STATEMENT OF EXPENDITURES YEARS ENDED DECEMBER 31, 1979 and 1978 1979 Budget 1979 1978 As Adopted As Amended Actual Actual GENERAL GOVERNMENT -- Mayor and Council Personal services $ 49,910 $ 49,916 $ 33,616 $ 47,063 ^, Other expenditures 26,320 26,320 30,960 14,786 Capital outlay 144 $ 76,230 $ 76,236 $ 64,576 $ 61,993 Planning Commission Personal services $ 23,336 $ 23,538 $ 20,486 $ 18,557 Other expenditures 7,608 7,608 4,352 4,308 - Capital outlay 143 $ 30,944 $ 31,146 $ 24,838 $ 23,008 Other Commissions Personal services $ 7,427 $ 7,735 $ 4,667 $ 4,364 Other expenditures 6,227 9,752 12,817 4,300 "-1/4--N, $ 13,654 $ 17,487 $ 17,484 $ 8,664 City Manager Personal services $ 99,047 $114,521 $ 98,182 $115,040 -- Other expenditures 37,253 37,253 31,867 26,435 Capital Outlay 2,650 2,650 16,798 2,756 $138,950 $154,424 1146,647 $144,231 Personnel Personal services $ 18,903 $ 25,531 $ 23,710 $ 21 ,335 Other expenditures 6,426 8,318 6,222 2,568 Capital outlay 125 $ 25,329 $ 33,845 $ 29,932 $ 24,028 - Legal Personal services $ 2,816 $ 2,816 . $ 14 Other expenditures 50,100 50,100 46,857 $ 53,134 $ 52,916 $ 52,916 $ 46,871 $ 53,134 Elections Personal services $ 8, 103 $ 8,103 $ 3,949 $ 14,306 - Other expenditures 3,366 3,366 1,664 1,503 Capital outlay 200 200 480 _. Finance $ 11,669 $ 11,669 $ 5,613 $ 16,289 Personal services $ 87,289 $ 89,681 $ 93,293 $ 83,171 Other expenditures 51,300 51,300 44,365 44,351 Capital outlay 3,760 3,760 4,322 2 125 $12 $142,349 $144,741 $141,980 9,647 - See accompanying Notes to Financial Statements. -19- EXHIBIT XII CONTINUED CITY OF FRIDLEY, MINNESOTA ., GENERAL FUND STATEMENT OF EXPENDITURE$ (CONTINUED) ;_ YEARS ENDED DECEMBER 31 , 1979 and 197$ 1979 Budget 1979 1978 As Adopted As Amended Actual Actual -- GENERAL GOVERNMENT (CONTINUED) Assessing Personal services $ 97,408 $ 97,433 $ 98,339 $ 101 ,413 Other expenditures 11,285 11 ,285 10,356 9,383 Capital outlay 200 200 591 $ 108,893 $ 108,918 $ 108,695 $ 111,387 Total general government $ 600,934 $ 631 ,386 $ 586,836 $ 572,381 PUBLIC SAFETY Police -- Personal services $ 964,445 $ 997,505 $ 892,087 $ 910,555 Other expenditures 140,833 143,268 205,547 150,548 Capital outlay 56,220 59,830 68,296 53,793 "-$1,161,498 $1,200,603 $1 ,165,930 $1 ,114,896 Fire Personal services $ 253,073 $ 262,073 $ 249,958 $ 251 ,433 ,...- Other expenditures 42,720 50,877 44,973 52,703 Capital outlay 1,400 1,400 19,309 11,432 $ 297,193 $ 314,350 $ 314,240 $ 315,568 Civil Defense Personal services $ 14,480 $ 14,480 $ 11,607 $ 13,266 Other expenditures 5,365 5,365 3,883 2,572 Capital outlay 4,000 4,000 4,000 $ 23,845 $ 23,845 , Total Public Safety $1,482,536 $1 ,538,798 9, iiiii3g -- CIVIC CENTER Personal services $ 43,970 $ 45,664 $ 43,312 $ 45,134 .- Other expenditures 63,750 63,750 61,419 40,785 Capital outlay 16,600 16,600 17,206 16,525 Total Civic Center $ 1Z4,320 $ 126,014 $ 121,937 $ 102,444 PUBLIC WORKS Code Enforcement Personal services $ 133,806 $ 135,821 $ 100,774 $ 120,230 Other expenditures 25,600 25,600 25,354 53,368 Capital outlay 1,225 1 ,225 512 1 ,613 ._ $ 160,631 $ 162,646 $ 126,640 $ 175,211 /--\ See accompanying Notes to Financial Statements. -20- ... EXHIBIT XII CONTINUED - CITY OF FRIDLEY, MINNESOTA "-„,„ GENERAL FUND STATEMENT OF EXPENDITURES (CONTINUED) YEARS ENDED DECEMBER 31 , 1979 and 1978 1979 Budget 1979 1978 As Adopted As Amended Actual Actual PUBLIC WORKS (CONTINUED) Planning Personal services $ 60,318 $ 63,828 $ 64,936 $ 74,651 Other expenditures 36,818 36,818 30,530 11,724 Capital outlay 5,000 694 $ 97,136 $ 100,646 $ 100,466 $ 87,069 -- Engineering Personal services $ 67,050 $ 69,444 $ 67,349 $ 54,484 Other expenditures 19,954 „ 19,954 21,933 30,673 Capital outlay 6,650 6,650 5,779 6,396 $ 93,654 $ 96,048 $ 95,061 $ 91,553 Public Works ^' Personal services $ 275,779 $ 280,545 $ 269,089 $ 248,011 Other expenditures 329,490 329,490 307,503 302,122 Capital outlay 125,725 125,725 122,705 124,628 -..... $ 730,994 $ 735,760 $ 699,297 Total Public Works $T,082,415 $1,095,100 $1,021,464 , , _. PARKS AND RECREATION Naturalist Personal services $ 45,701 $ 48,720 $ 46,657 $ 105,558 "" Other expenditures 22,345 . 22,345 16,117 47,096 Capital outlay 3,235 3,235 2,824 333 $ 71,281 $ 74,300 $ 65,598 $ 152,987 -- Parks Personal services $ 235,100 $ 241,705 $ 216,499 $ 122,113 Other expenditures 225,436 225,436 263,883 105,964 Capital outlay 103,103 249,603 235,945 139,410 $ 563,639 $ 7T6,744 $ 716,327 $ 367,487 Recreation Personal services $ 214,767 $ 230,883 $ 190,257 $ 238,742 "- Other expenditures 82,378 82,378 76,087 61,707 Capital outlay 3,735 4,513 2,197 1,172 $ 300,880 $ 317,774 268,541 $ 301,62T Total Parks and Recreation $ 935,800 $1,108,818 $1,050,466 $ 822,095 RESERVE FOR CONTINGENCIES Total Reserve for Contingencies $ 125,000 $ 143,843 $ -0- $ -0- Total expenditures $4,351,005 $4,643,959 $4,280,363 $3,971,816 -- See accompanying Notes to Financial Statements. -21- 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. x\,, i i i i i J1 I r I I I I � I i EXHIBIT XIII CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEETS DECEMBER 31, 1979 Municipal Revenue Teen Community Home Combined State Aid Sharing STEP Center Development Ownership ASSETS Cash (deficit) $ 190,534 $, 1317;066 $ 92,883 $(27,701) $(1,463) $(2,107) $(1,144) Investments, at cost 972,544 949,893 20,478 2,046 127 Accounts receivable N Federal government 56,692 56,692 State of Minnesota 330,427 313,123 7,223 9,047 1,034 Other 2,622 2,622 Total assets $1,552,819 $1,395,704 $149,575 $ -0- $ 583 $ 7,067 $ (110) LIABILITY AND FUND BALANCE Liability - Accounts payable $ 5,000 $ 5,000 Fund balance Reserve for construction 313,123 $ 313,123 Appropriated 1,136,535 -¢,986,960 $149,575 Unappropriated 98,161 95,621 -,6 ., $ 583 $ 7,067 $(5,110) Total liability and fund balance $1,552,819 $1,395,704 $149,575 $ -0- $ 583 $ 7,067 $ (110) See accompanying Notes to Financial Statements. EXHIBIT XIV CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF CHANGES IN FUND BALANCES YEAR ENDED DECEMBER 31, 1979 Municipal Revenue Teen Community Home Combined State Aid Sharing STEP Center Development Ownership Fund balance January 1, 1979 before adjustment $1,285,432 $1,138,798 $133,423 $ 2,009 $1,666 $ 9,536 Adjustment: To Fund Balance w Accounts receivable (105,618) (105,618) 1 Fund balance January 1, 1979 after adjustment $1,179,814 $1,033,180 $133,423 $ 2,009 $1,666 $ 9,536 Revenue 917,701 501,285 233,155 105,834 8,410 67,983 $ 1,034 Expenditures 549,696 138,761 217,003 107,843 9,493 70,452 6,144 Fund balance December 31,1979 $1,547,819 $1,395,704 $149,575 $ -0- $ 583 $ 7,067 $(5,110) See accompanying Notes to Financial Statements. 1 r:) I 1 1 1 1 _I J ' __1 1 a J 1 l 1 \_ 1 1 i ' \ 1 1 1 1 I 1 1 .)11 1 1 I I 1 1 I 1 • EXHIBIT XV • CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUNDS • COMBINING STATEMENT OF REVENUE AND EXPENDITURES YEAR ENDED DECEMBER 31, 1979 Community Home Combined Municipal State Aid Revenue Sharing STEP Teen Center Development Ownership Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual Revenue State-aid construction apportionment $211,909 $336,117 $211,909 $336,117 I Grants and donations 418,645 334,855 $216,612 $224,478 $115,833 $ 32,950 $9,500 $ 8,410 $70,550 $67,983 $ 6,150 $ 1,034 ? Interest on investments 67,500 81,488 64,000 72,811 3,500 8,677 Transfers 165,241 92,357 72,884 Prior years' fund balance 51,000 51,000 Total revenue $749,054 $917,701 $326,909 $501,285 $220,112 $233,155 $115,833 $105,834 $9,500 $ 8,410 $70,550 $67,983 $ 6,150 $ 1,034 Expenditures Transfers to other funds General fund $523,521 $332,000 $303,409 $115,000 $220,112 $217,000 1977 Street Construction Fund 3,500 3,520 3,500 3,520 1978 Street Construction Fund 20,000 20,241 20,000 20,241 Other $202,033 $193,935 3 $115,833 $107,843 $9,500 $ 9,493 $70,550 $70,452 $6,150 $ 6,144 Total expenditures $749,054 $549,696 $326,909 $138,761 $220,112 $217,003 $115,833 $107,843 $9,500 $ 9,493 $70,550 $70,452 $6,150 $ 6,144 Revenue over(under) expenditures $ -0- $368,005 $ -0- $362,524 $ -0- $ 16,152 $ -0- $ (2,009) $ -0- $(1,083) $ -0- $(2,469) $ -0- $(5,110) See accompanying Notes to Financial Statements. 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 for and serviced primarily by a governmental enterprise. • EXHIBIT XVI CITY OF FRIDLEY, MINNESOTA GENERAL DEBT SERVICE FUND CIVIC CENTER BONDS OF 1965 BALANCE SHEET DECEMBER 31, 1979 ASSETS Cash $ 1,851 Investments, at cost 62,532 Taxes receivable Delinquent $1,066 Unremitted 378 Less: Estimated uncollectible taxes ( 1,066) 378 Total assets $64,761 LIABILITY AND FUND BALANCE Liability - Deferred revenue $ 378 Fund balance - Appropriated 64,383 Total liability and fund balance $64,761 See accompanying Notes to Financial Statements. -25- EXHIBIT XVII CITY OF FRIDLEY, MINNESOTA GENERAL DEBT SERVICE FUND CIVIC CENTER BONDS OF 1965 STATEMENT OF REVENUE, EXPENDITURES AND ANALYSIS OF FUND BALANCE YEAR ENDED DECEMBER 31, 1979 — Budget Actual Revenue Property taxes $39,102 $34,300 Homestead credit 5,781 Interest on investments 1,000 2,792 Total revenue $40,102 $42,873 Expenditures Bonds $30,000 $30,000 /-' Interest 8,500 8,500 Fiscal agent service charge 100 61 Contingencies 1,502 Total expenditures $40, 102 $38,561 Revenue over expenditures $ 4,312 Fund balance, January 1, 1979 $60,071 60,071 Fund balance, December 31, 1979 $60,071 $64,383 .- See accompanying Notes to Financial Statements -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 financed by special assessment and enterprise funds. 4f I J l 1 1 1 1 1 1 J1 1 1 1 1 1 1 J j 1 EXHIBIT XVIII CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECT FUNDS BALANCE SHEETS DECEMBER 31, 1979 Capital Islands North Locke North Park Combined Improvement of Peace Park Park Sears Visitation Garage ASSETS Cash (deficit) $(98,445) $ 10,783 $ 615 $ 202 $ 410 $(111,124) $ 669 Investments, at cost 326,976 288,846 4,800 5,079 11,469 16,782 Taxes receivable Delinquent $ 573 $ 573 Unremitted 409 409 Less: estimated ry Uncollectible taxes (573) . 409 (573) 409 V Due from other -government 137,250 137,250 Total assets $366,190 $300,038 $5,415 $5,281 $11,879 $ 26,126 $17,451 $-0- LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 4,911 $1,811 $3,100 Deferred revenue 409 $ 409 Fund Balance Appropriated 59,117 3,661 $11,879 $ 26,126 $17,451 Unappropriated 301,753 299,629 (57) 2,181 Total liabilities and fund balance $366,190 $300,038 $5,415 $5,281 $11,879 $ 26,126 $17,451 $-0- See accompanying Notes to Fiancial Statements. • EXHIBIT XIX CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECT FUNDS ANALYSIS OF CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1979 Capital Islands North Locke North Park Combined Improvement of Peace Park Park Sears Visitation Garage Fund balance (deficit) 1 January 1, 1979 $253,054 $212,646 $27,347 $1,804 $11,257 ra co 1 Adjustment for accounts payable 608 608 Revenue 569,926 86,983 3,408 377 857 $362,079 $30,669 $85,553 Expenditures 462,718 27,759 235 335,953 13,218 85,553 Fund balance December 31, 1979 $360,870 $299,629 $ 3,604 $2,181 $11,879 $ 26,126 $17,451 $ -0- See accompanying Notes to Financial Statements. 1 :) 1 1 1 ) ) l 1 _1 l _ l ____ 1 1 1 I / 1 1 1 1 V \J\ 1 1 1 1 I )I 1 . 1 1 1 1 1 " , 1 I EXHIBIT XX CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECT FUNDS .. STATEMENT OF REVENUE AND EXPENDITURES YEAR ENDED DECEMBER 31, 1979 lr Capital Islands North Locke North Park Combined Improvement of Peace Park Park Sears Visitation Garage Revenue Property taxes $ 37,024 $37,024 Homestead credit 6,291 6,291 Interest on investments 23,012 18,668 $ 2,441 $377 $857 $ 669 Grants 236,625 $206,625 30,000 ' N Transfer from other fund 116,700 25,000 65,000 $26,700 up Other 150,274 967 90,454 58,853 1 Total revenue $569,926 $86,983 $ 3,408 $377 $857 1362,079 $30,669 $85,553 Expenditures Interest $ 4,996 $ 4,996 Other 457,722 $ 27,759 $235 330,957 $13,218 $85,553 Total Expenditures $462,718 $ -0- ; 27,759 $-0- $235 $335,953 $13,218 $85,553 Revenue over (under) Expenditures $107,208 $86,983 $(24,351) $377 $622 $ 26,126 $17,451 $ -0 See accompanying Notes to Financial Statements. SPECIAL ASSESSMENT FUNDS Special Assessment Funds are employed to finance and account for the construction and financing of certain public 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 fact that special assessment improvements are paid for 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 bonds. EXHIBIT XXI CITY OF FRIDLEY, MINNESOTA SPECIAL ASSESSMENT FUNDS BALANCE SHEETS DECEMBER 31 , 1979 Special Special Special Assessment Assessment Assessment -- Combined Construction Debt Service Revolving ASSETS Cash (deficit) $ (124,774) $(224,325) $ 82,234 $ 17,317 Investments, at cost 5,256,803 370,792 4,444,019 441,992 Due from the State of Minnesota 2,880 2,880 Special assessments receivable Delinquent 379,149 373,488 5,661 Deferred - Principal 3,223,661 3,142,373 81,288 Unassessed construction costs 1,145,000 1,145,000 Total assets $9,882,719 $ 146,467 $9,189,994 $546,258 LIABILITIES AND FUND BALANCE Liabilities Accounts and contracts payable $ 98,327 $ 98,300 $ 27 • Deposits payable 143,141 $143,141 Bonded indebtedness Future maturities Definitive bonds Principal 4,169,750 4,169,750 Temporary Bonds (held by (City of Fridley) Principal 1,620,000 1,620,000 Fund balance (deficit) - Appropriated 3,851,501 48,167 3,400,217 403,117 Total liabilities and fund balance $9,882,719 $ 146,467 $9,189,994 $546,258 See accompanying Notes to Financial Statements. -- -30- EXHIBIT XXII CITY OF FRIDLEY, MINNESOTA SPECIAL ASSESSMENT FUND 1 ANALYSIS OF CHANGES IN FUND BALANCES ' YEAR ENDED DECEMBER 31 , 1979 Special Special Special Assessment Assessment Assessment Combined Construction Debt Service Revolving Fund balance (deficit) January 1 , 1979 $3,335,268 $ (90,369) $3,024,699 $400,938 (Adjust prior year unassessed construction costs (500,000) (500,000) (Adjust prior year assessments receivable (7,633) (88) (7,545) Other adjustment (15,082) (15,082) Revenue 2,627,741 1 ,338,333 1 ,229,589 59,819 Expenditures 1 ,588,793 1 ,184,715 353,983 50,095 Fund balance (deficit) December 31 , 1979 Imam. $3_,9(1.217, x;403. 7 _ n See accompanying Notes to Financial Statements, -31- EXHIBIT XXIII CITY OF FRIDLEY, MINNESOTA SPECIAL ASSESSMENT FUNDS STATEMENT OF REVENUE AND EXPENDITURES YEAR ENDED DECEMBER 31 , 1979 Special Special Special Assessment Assessment Assessment Combined Construction Debt Service Revolving Revenue Proceeds from sale of bonds $1,145,000 $1, 145,000 Special assessments levied 598,618 $ 578,157 $20,461 Interest on assessments 240,897 234,228 6,669 Penalties and interest on assessments 22,189 22,046 143 County share of project 2,880 2,880 Interest on investments 389,658 25,879 331,233 32,546 Other 25,101 25,101 Transfers from other funds 203,398 142,353 61,045 Total revenue $2,627,741 $1,338,333 $1,229,589 $59,819 Expenditures Construction costs $1,062,465 $1,062,465 Bond interest 262,597 262,597 Fiscal agent charges 3,631 3,631 Other 11,756 11,743 13 Transfers to other funds 248,344 122,250 76,012 50,082 Total expenditures $1,588,793 $1 ,184,715 $ 353,983 $50,095 Revenue over expenditures $1,038,948 $ 153,618 $ 875,606 $ 9,724 See accompanying Notes to Financial Statements. -32- EXHIBIT XXIV CITY OF FRIDLEY, MINNESOTA SPECIAL ASSESSMENT FUNDS STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS YEAR ENDED DECEMBER 31 , 1979 Special Special Special Assessment Assessment Assessment Combined Construction Debt Service Revolving Cash balance (deficit) January 1, 1979 $ (92,555) $ (69,656) $ (25,400) $ 2,501 Receipts Proceeds from sale of bonds $1,145,000 • $1, 145,000 Special assessments •984,497 $ 952,341 $ 32,156 Penalties and interest on assessments 22,188 22,045 143 -- Interest on invetments 389,658 25,879 331,233 32,546 Escrow deposits 25,221 25,221 Other 25,102 25,102 fir, Transfers from other funds 653,441 142,353 61,045 450,043 Investments matured 4,503,997 117,016 4,386,981 Total receipts $7,749,104 $1,455,350 $5,753,645 $540,109 Disbursements Construction costs $1,116,977 $1,116,977 Bond retirement Principal 848,035 $ 848,035 Interest 262,597 262,597 Fiscal agent charges 3,605 3,605 -` • Refund of escrow deposits 33,205 $ 33,205 Other 11,757 11,743 14 Transfers to other funds 248,344 122,250 76,012 50,082 -� Investments purchased 5,256,803 370,792 4,444,019 441,992 Total disbursements $7,781,323 $1,610,019 $5,646,011 $525,293 ,, Cash balance (deficit) December 31, 1979 $ (124,774) $ (224,325) $ 82,234 $ 17,317 n See accompanying Notes to Financial Statements. -33- 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. EXHIBIT XXV CITY OF FRIDLEY, MINNESOTA ENTERPRISE FUNDS "''•, BALANCE SHEETS DECEMBER 3T, 1979 Public Christenson Liquor Utility Building Combined Fund Fund Fund ASSETS Current assets Cash (deficit) $ (54,811 ) $ (2,458) $ (52,293) $ (60) Investments, at cost 2,468,774 393,076 2,065,926 9,772 Accounts receivable 304,194 1,413 302,781 - Inventories, at cost 165,258 161,409 3,849 Prepaid expenses 47,438 5,163 42,275 Due from other funds 41,313 41,313 - Total Current assests $ 2,972,166 $558,603 $ 2,403,851 Restricted assets Sinking account '- Cash $ 9,333 $ 9,333 Investments, at cost 229,182 229,182 Accounts receivable - Metropolitan Waste Control Commission 494,427 494,427 Total restricted assets $ 732,942 $ 732,942 Property, plant and equipment, Substantially all at cost less accumulated depreciation 12 003,718 $215,991 $11,787,727 Total assets , 08, $774,594 $14,924,520 9, LIABILITIES AND RETAINED EARNINGS Current liabilities . Accounts payable $ 23,670 $ 245 $ 23,425 Bonds payable within one year 106,964 106,964 Total current liabilities $ 130,634 $ 245 $ 130,389 T-707: Other liabilities .. Bonds payable less portion due within one year $ 418,286 $ 418,286 Deferred income 494,427 494,427 - Deposits payable 185 185 Total other liabilities $ 91Z,898 $ -0- $ 912,898 - Retained earnings Contributions $10,166,680 $10,166,680 Invested in property, plant and equipment 1,837,038 $215,991 1,621,047 Unappropriated 2,661,576 558,358 2,093,506 9,7 Total retained earnings $14,665,294 $774,349 $13,881,233 12 , Total liabilities and retained earnings $15,708,826 $774,594 $14,924,520 $9,712 - See accompanying Notes to Financial Statements. -34- EXHIBIT XXVI CITY OF FRIDLEY, MINNESOTA ENTERPRISE FUNDS - t COMBINED STATEMENT OF INCOME AND CHANGES IN RETAINED EARNINGS YEAR ENDED DECEMBER 31 , 1979 Public Christenson Liquor Utility Building Combined Fund Fund Fund Sales and cost of sales Sales $ 1 ,461 ,144 $1 ,461 ,144 .. Cost of sales 1,185,282 1,185,282 Gross profit $ 275,862 $ 275,862 Operating income .. Water sales and sewer rents $ 1,313,764 $ 1,313,764 Rental income 45,527 $45,527 Other 82,339 80,816 Total operating income $ 1,441,630 $ -0- $ 1,394,580 , Operating expenses $ 1,481,112 $ 203,210 $ 1 ,237,504 $40,398 _. Operating income $ 236,380 $ 72,652 $ 157,076 $ 6,652 Other income and (expense) Interest on investments $ 173,467 $ 29,813 $ 143,654 Other interest 35,637 1,413 34,224 Other income 21 ,494 13,526 7,968 Interest expense (24,273) (24,273) Fiscal agent charges (209) (209) Total other income and (expense) $ 206,116 $ 44,752 $ 161 ,364 Net income $ 442,496 $ 117,404 $ 318,440 $ 6,652 Retained earnings January 1 $14,298,344 $ 741,933 $13,554,769 $ 1 ,642 Add Current value credits received 13,033 13,033 Write-off of accounts payable 1,722 $ 12 292 $ 1,418 Deduct - transfers to other funds (90,301 ) (85,000) (5,301 ) Retained earnings December 31 $14,665,294 $ 774,349 $13,881,233 $ 9,712 See accompanying Notes to Financial Statements. /'N -35- EXHIBIT XXVI - CITY OF FRIDLEY, MINNESOTA ENTERPRISE FUNDS COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED DECEMBER 31, 1979 Public Christenson - Liquor Utility Building Combined Fund Fund Fund SOURCE OF FUNDS Operations: Net income for the year $442,496 $117,404 $318,440 $ 6,652 Items not requiring current outlay of funds Depreciation 115,649 8,312 107,337 $558,145 $125,716 $425,777 $ 6,652 Adjustment of accounts payable $ 1,722 $ 12 $ 292 $ 1,418 Metropolitan Waste Control Commission credits received _ 13,033 13033 Total source of funds $572,900 $125,728 $439,102 $8,070 APPLICATION OF FUNDS Adjustment of prior years interest $ 133 $ 133 Purchase of property and equipment 47,367 16,030 $ 31,337 "' Decrease in other liabilites Deferred income 1,415 1,415 Deposits payable (45) (45) Bonds payable less portion due within one year 1 1 Transfers to sinking accounts 82,641 82,641 Transfers to other funds 90,301 85,000 5,301 Increase in working capital 351,087 23,150 319,867 $ 8,070 Total application of funds $572,900 $125,728 $439,102 $ 8,070 Various elements of net increase in working capital - Cash and investments $206,439 $(67,088) $263,688 $ 9,839 Accounts receivable 10,045 ( 1,729) 15,349 (3,575) Inventory 5,907 5,681 226 Prepaid expenses 6,330 5,163 1,167 Accounts payable 80,779 81,123 ( 1,875) 1,531 Bonds payable within one year 275 (1) Deferred income 275 Due from other funds 41,313 41,313 n. Increase in working capital 1351,087 $ 23,150 $319,867 $ 8,070 See accompanying Notes to Financial Statements. -36- EXHIBIT XXVIII CITY OF FRIDLEY LIQUOR FUND BALANCE SHEET DECEMBER 31, 1979 AND 1978 ASSETS 1979 1978 Current assets Cash $ (2,458) $ 6,326 Investments, at cost 393,076 451,247 Accounts receivable - anti-trust 1,413 3,142 Inventory at cost 161,409 155,728 ., Prepaid expenses 5,163 Total current assets $558,603 $616,443 Property, plant and equipment, substantially all at cost Land and buildings $198,641 $198,641 Furniture, fixtures and equipment 77,967 62,538 Signs and automotive 14,229 13,628 Less accumulated depreciation 74 846) 66,534) Net property, plant and equipment $215,991 0 Total assets $774,594 $824,716 LIABILITIES AND RETAINED EARNINGS Current liabilities Accounts payable $ 245 $ 75,223 Accrued sales tax 6,145 Total current liabilities $ 245 $ 81,368 Reserve for anti-trust $ 1,415 Retained earnings $774,349 741,933 Total liabilities and retained earnings $774,594 $824,716 See accompanying Notes to Financial Statements. -37- EXHIBIT XXIX CITY OF FRIDLEY, MINNESOTA LIQUOR FUND ANALYSIS OF CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1979 AND 1978 1979 1978 Retained earnings January 1 $741,933 $707,306 Net income 117,404 119,607 Adjustment of accounts payable 12 20 Transferred to General Fund (85,000) (85,000) Retained earnings December 31 $774,349 $741,933 /'N See accompanying Notes to Financial Statements. -38- EXHIBIT XXX CITY OF FRIDLEY, MINNESOTA LIQUOR FUND STATEMENT OF INCOME YEARS ENDED DECEMBER 31, 1979 AND 1978 Store No. 3 Store No. 4 Combined Store No. 2 Hwy. 65 Holly Center . 1979 1978 1979 1978 1979 1978 1979 1978 Sales $1,461,144 $1,323,462 $776,716 $686,195 $684,428 $637,267 Cost of Sales 1,185,282 1,062,521 630,036 550,355 555,246 512,166 Gross Profit $ 275,862 $ 260,941 $146,680 $135,840 $129,182 $125,101 Percent of sales 18.9 19.7 18.9 19.8 18.9 19.6 I GO 101,180 $ 91,019 $102,030 $ 90,388 1' Operating expenses $ 203,210 $ 181,407 $101,180 of sales 13.9 13.7 13.0 13.3 14.9 14.2 Operating profit $ 72,652 $ 79,534 45,500 $ 44,821 $ 27,152 $ 34,713 Percent of sales 5.0 6.0 5.9 6.5 4.0 5.4 Other income $ 44,752 $ 40,073 $2,781 $ 23,656 $ 19,359 $ 21,096 $ 17,933 Percent of sales 3.0 3.0 3.1 2.8 3.1 2.8 Net income $ 117,404 $ 119,607 $-0- $2,781 $ 69,156 $ 64,180 $ 48,248 $ 52,646 Percent of sales 8.0 9.0 8.9 9.3 7.0 8.2 See accompanying Notes to Financial Statements. 1 ___ l l l 1 l __ 1 __ l =_\ __l 1 __l __ 1 1 1 1 1 l I ' 1 1 I 1 1 I I 1 )I 1 1 1 I 1 I 1 I EXHIBIT XXXI CITY OF FRIDLEY, MINNESOTA LIQUOR FUND STATEMENT OF OPERATING EXPENSES YEARS ENDED DECEMBER 31, 1979 and 1978 Store No. 3 Store No. 4 Combined Hwy. 65 Molly Center 1979 1978 1979 1978 1979 1978 Operating expenses Selling Salary - clerks $ 90,269 $ 86,552 =:44,717 $42,536 $ 45,552 $44,016 Bags & wrapping 3,801 3,395 1,923 1,732 1,878 1,663 Uncollectable checks 1,113 543 572 191 541 352 Cash shortage 132 38 28 (10) 104 48 Licenses 53 108 27 54 26 54 • Sales tax shortage 99) $-50-54) 10 32 �109) (74) $ 47,277 $44,535 I-47-992- $46,059 Percent of sales 6.5 6.9 6,1 6.5 7.0 7.2 Overhead Utilities $ 10,524 $ 8,282 $ 6,345 $ 5,226 $ 4,179 $ 3,056 1 Insurance 17,956 13,667 9.282 6,971 8,674 6,696 o Rent 12,399 8,357 12,399 8,357 1 Laundry 1,262 1,100 510 619 652 481 Repair and maintenance 5,470 4,055 3,079 2,350 2,391 1,705 Supplies 1,183 594 639 342 544 252 Communications 1,093 1,126 686 531 407 595 Alarm service 873 561 289 315 584 246 Advertising 1,656 1,467 1,186 918 470 549 Depreciation 8,312 8,223 6,953 6,943 1,359 1,280 Other overhead expense 2,260 1 835 458 1,079 802 756 $ 62,988 x,267 X1 0 ,527 $25,294 $ 32,461 $23,973 Percent of sales 4.3 3.7 3.9 3.7 4.7 3.8 General Management expense $ 20,904 $ 20,992 $ 10,870 $10,706 $ 10,034 $10,286 Inventory control 6,436 6,254 3,347 3,190 3,089 3,064 Accounting 10,719 7,568 5,574 3.860 5,145 3,708 Warehouse expense 32 16 16 Data processing 5,591 5,699 2,907 2,907 2,684 2,792 Other general overhead _-_,1 306 _-.,1 00] • 679 511 627 490 44,956 $ 41,345 1.23,377 $21,190 $ 21,579 $20,356 Percent of sales 3.0 3.1 3.0 3.1 3.2 3.2 Total operating expenses $203,213 $181,407 $101,181 $91,019 $102,032 $90,388 Total percent of sales 13.9 13.7 13.0 13.3 14.9 14.2 See accompanying Notes to Financial Statements. EXHIBIT XXXII CITY OF FRIDLEY, MINNESOTA LIQUOR FUND STATEMENT OF CHANGES IN FINANCIAL POSITION YEARS ENDED DECEMBER 31 , 1979 AND 1978 1979 1978 SOURCE OF FUNDS Operations: Net income for the year $117,404 $119,607 Items not requiring current outlay of funds Depreciation 8,312 8,223 $125,716 $127,830 Decrease in long-term contracts receivable 45,687 .. Decrease in anti-trust receivables 1,495 Adjustment of accounts payable 12 20 Total source of funds $125,728 $175,032 APPLICATION OF FUNDS ^' Adjustment of prior year interest $ 133 Purchase of property and equipment 16,030 Transfer to General Fund 85,000 $ 85,000 Decrease in deferred income 1,415 1,579 Increase in working capital 23,150 88,453 .. Total application of funds $125,728 $175,032 Various elements of net increase in working capital: Cash $ (8,917) $ 2,041 Investments (58,171 ) • 140,187 Accounts receivable (1 ,729) 1,643 Inventory 5,681 17,645 Contracts for deed receivable (6,917) Accounts payable 74,978 (65,771 ) Accrued sales tax 6,145 (363) Prepaid expenses 5 163 (12) Increase in working capital s $ 88,453 See accompanying Notes to Financial Statements. n -41- '- EXHIBIT XXXIII CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITY FUND ,, BALANCE SHEET DECEMBER 31, 1979 AND 1978 1979 1978 ASSETS Current assets Cash (deficit) $ (520293) $ 4,855 Investments, at cost 2,065,926 1,745,090 Accounts receivable 302,781 287,432 Inventory of meters 3,849 3,623 Prepaid expenses 42,275 41,108 Due from other funds 41,313 Total current assets $ 2,403,851 $ 2,082,108 Restricted assets Sinking accounts Cash $ 9,333 $ 3,893 Investments, at cost 229,182 258,944 Accounts receivable - Metropolitan Waste Control Comm. 494,427 498,441 Total restricted assets $ 732,9 2 $ 761,278 Property, plant and equipment, substantially all at cost Land and improvements $ 154,881 $ 152,793 Buildings 754,608 737,067 Machinery and equipment 1,915,270 1,903,563 Other improvements 123,909 123,909 Water and sewer lines 10,166,680 10,166,680 $13,115,348 $13,084,012 Less accumulated depreciation 11327,621 1,220,284 Net property, plant and equipment $11,787,727 $11,863,728 Total assets $14,924,520 $14,707,114 LIABILITIES AND RETAINED EARNINGS Current liabilities Accounts payable - other $ 23,425 $ 21,550 Bonds payable within one year 106,964 106,965 Total current liabilities $ 130,389 $ 128,515 Other liabilities Bonds payable less portion due within one year $ 418,286 $ 525,249 Deferred income - Metropolitan Waste Control Commission 494,427 498,441 Deposits payable 185 140 Total other liabilities $ 912,898 $ 1,023,830 Retained earnings Contributions from other funds $10,166,680 $10,166,680 Invested in property, plant and equipment 1,621,047 1,697,048 Unappropriated 2,093,506 1,691,041 Total retained earnings $13,881,233 $13,554,769 Total liabilities and retained earnings $14,924,520 $14,707,114 '- See accompanying Notes to Financial Statements. -42- EXHIBIT XXXIV ti CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITY FUND ANALYSIS OF CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 1979 AND 1978 1979 1978 Retained earnings January 1 , before adjustments $13,554,769 $ 3,036,949 Adjustments -- Contribution of water and sewer lines 10,166,680 Elimination of other liability - deferred credit -0- 123,118 Retained earnings January 1, after adjustments $13,554,769 $13,326,747 Add Net income $ 318,440 $ 227,337 e^ Current value credits received 13,033 13,158 Write-off of accounts payable 322 483 Deduct Transfer out 553 Transfer out = Special Assessment Fund 4,748 12,956 Adjustment of accounts receivable 30 Retained earnings, December 31 $13,881,233 $13,554,769 See accompanying Notes to Financial Statements. -43- I I I I l I I I I I I I I I I I EXHIBIT XXX. CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITY FUND STATEMENT OF INCOME YEARS ENDED DECEMBER 31, 1979 AND 1978 1979 1978 1979 1978 1979 1978 Combined Combined Water Water Sewer Sewer Operating income Water sales and sewer rents $1,313,764 $1,319,213 $563,599 $551,300 $750,165 $767,913 Connection permits 5,524 6,119 1,737 1,950 3,787 4,169 Sales of materials and miscellaneous service 75,292 79,127 56,520 62,491 18,772 16,636 Total operating income $1,394,580 $1,404,459 $621,856 $615,741 $772,724 $788,718 Operating expenses Source of supply $ 557,867 $ 591,356 $ 37,607 $ 1,895 $520,260 $589,461 Power and pumping 126,542 135,392 97,261 106,780 29,281 28,612 Purification 70,897 46,047 70,897 46,047 Transmission and distribution 252,518 291,568 127,254 134,946 125,264 156,622 Customer accounting and collecting 80,909 77,967 53,243 53,778 27,666 24,189 - Administrative and general 41,434 47,523 33,276 33,187 8,158 14,336 I Depreciation 107,337 110,135 93,818 96,130 13,519 14,005 Total operating expenses $1,237,504 $1,299,988 $513,356 $472,763 $724,148 $827,225 Operating income (loss) $ 157,076 $ 104,471 $108,500 $142,978 $ 48,576 $(38,507) Other income and (expense) Interest on investments - operating account $ 143,654 $ 112,530 Interest on investments - sinking account 16,534 18,083 Other interest - operating account 17,690 17,819 Connection charges 7,968 3,561 Interest expense (24,273 ) (28,964) Fiscal agents' charges - sinking accounts (209) (163) Total other income and (expense) $ 161,364 $ 122,866 Net income $ 318,440 $ 227,337 See accompanying Notes to Financial Statements. EXHIBIT XXXVI CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITY FUND STATEMENT OF CHANGES IN FINANCIAL POSITION YEARS ENDED DECEMBER 31 , 1979 AND 1978 1979 1978 SOURCE OF FUNDS Operations Net income for the year $318,440 $227,337 Items not requiring current outlay of funds Depreciation 107,337 110, 135 $425,777 $337,472 Metropolitan Waste Control Commission credits received $ 13,033 $ 13,158 Sale of fixed assets 1,797 Write-off of accounts payable (receivable) 292 483 Total source of funds $439,102 $352,910 APPLICATION OF FUNDS Purchase of property and equipment $ 31,337 $ 22,709 , Decrease in other liabilities , Deposits payable (45) 668 Bonds payable less portion due within one year 1 5,241 Transfers to sinking accounts 82,641* 83,316* Transfers to other funds - Special Assessment Fund 4,748 12,956 Transfer to other funds 553 -• Increase in working capital 319,867 228,020 Total application of funds $439, 102 $352,910 �. Various elements of net increase in working capital - - Cash and investments $263,688 $192,830 Accounts receivable 15,349 15,282 Inventory 226 252 Prepaid expenses 1 ,167 39,040 Accounts payable ( 1 ,875) ( 14,143) ^ Bonds payable within one year ( 1) (5,241 ) Due from other funds 41 ,313 Increase in working capital $319,867 $228,020 *Net of bonds paid less decrease in restricted assets - sinking accounts See accompanying Notes to Financial Statements. -45- .. EXHIBIT XXXUII CITY OF FRIDLEY, MINNESOTA CHRISTENSON BUILDING FUND BALANCE SHEET DECEMBER 31, 1979 AND 1978 ASSETS 1979 1978 Cash & Investments (deficit) $9,712 $( 127) Accounts receivable $600 $3,575 Less Reserve for doubtful accounts 600 3,575 Total assets $9,712 $3,448 LIABILITIES AND RETAINED EARNINGS Liabilities Accounts payable $1,531 Deferred income 275 Retained earnings - Unappropriated $9,712 $1,642 Total liabilities and retained earnings $9,712 $3,448 CHRISTENSON BUILDING FUND ANALYSIS OF CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31 , 1979 AND 1978 -- 1979 1978 Retained earnings January 1 before Adjustments $1,642 Adjustments Accounts payable canceled 1,418 Retained earnings January 1 after Adjustments $3,060 $ -0- Add net income 6,652 1,642 Retained earnings December 31 $9,712 $1,642 See accompanying Notes to Financial Statements. -46- EXHIBIT XXXVIII CITY OF FRIDLEY, MINNESOTA CHRISTENSON BUILDING FUND • STATEMENT OF INCOME 7 YEARS ENDED DECEMBER 31 , 1979 AND 1978 1979 1978 Operating income Rent $45,527 $14,805 Other income 1,523 Total operating income $47,050 $14,805 Operating expenses Salaries $ 1,186 Professional services 821 $ 25 -. Rent 20,181 6,800 Taxes 14,474 4,761 Repair and maintenance 2,689 Insurance 578 1,441 Other operating expenses 126 16 Lot maintenance 343 120 Total operating expenses $40,398 $13,163 Net income $ 6,652 $ 1,642 CITY OF FRIDLEY, MINNESOTA CHRISTENSON BUILDING FUND STATEMENT OF CHANGES IN FINANCIAL POSITION YEARS ENDED DECEMBER 31, 1979 AND 1978 SOURCE OF FUNDS 1979 1978 Operations Net income for the year $ 6,652 $ 1,642 Write off of accounts payable 1,418 $ 8,070 $ 1,642 APPLICATION OF FUNDS Increase in working capital $ 8,070 $ 1,642 Various elements of net increase in working capital Cash and Investments $ 9,839 $ (127) Accounts receivable (3,575) 3,575 Accounts payable 1,531 (1 ,531 ) Deferred income 275 (275) Increase in working capital $ 8,070 $ 1,642 rTh See accompanying Notes to Financial Statements. -47- "� • TRUST AND AGENCY FUNDS Trust and Agency Funds account for assets held by the City as a trustee or agent for individuals, private organizations, and other governmental units. • EXHIBIT XXXIX CITY OF FRIDLEY, MINNESOTA TRUST AND AGENCY FUND BALANCE SHEETS DECEMBER 31, 1979 ASSETS Cash (deficit) $17,254 Total assets $17,254 LIABILITIES AND FUND BALANCE Liabilities Deposits payable $16;243 Fund balance (deficit) 1,011 Total liabilities and fund balance $17,254 See accompanying Notes to Financial Statements. -48- EXHIBIT XXXX CITY OF FRIDLEY, MINNESOTA TRUST AND AGENCY FUND ANALYSIS OF CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1979 Fund balance (deficit) January 1 , 1979 $ -0- Revenue 14,365 Expenditures 13,354 Fund balance December 31 , 1979 $ 1,011 See accompanying Notes to Financial Statements. -49- -- EXHIBIT XXXXI CITY OF FRIDLEY, MINNESOTA TRUST AND AGENCY FUND STATEMENT OF REVENUE AND EXPENDITURES YEAR ENDED DECEMBER 31, 1979 Revenue Fees $13,304 Interest on investments 1,061 Total revenue $14,365 Expenditures Other $13,354 Total expenditures $13,354 Revenue over (under) expenditures $ 1,011 See accompanying Notes to Financial Statements, -50- 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. Whdriv 10 &-i +'` EXHIBIT X X X I I Msue CI\v\ 1N*girrjdl i ~ CITY OF FRIDLEY, MINNESOTA STATEMENT OF GENERAL FIXED ASSETS DECEMBER 31, 1979 General fixed assets ° Land $ 1,656,320 Building and structures `;b�. 1,200,801 10 Improvements other than buildings 9 a 740 11,709,629 V) Furniture, fixtures, and office equipment S4 711 273,957 S Machinery and equipment 1, 188,030 1 lyi Sa3 Specialized equipment 1a 4W 59,043 3 Construction in progress 1,639,954 Total general fixed assets $17,727,734 Investment in general fixed assets f Special assessments $11,716,292 State aid 302,497 General Fund 3,638,283 Other funds 510,174 Liquor Fund 15,421 Contributions 676,969 General obligation bonds 856,597 Public Utility Fund 2,522 Grants 8,979 Total investment in general fixed assets $17,727,734 ° See accompanying Notes to Financial Statements. -51- • EXHIBIT XXXXIII CITY OF FRIDLEY, MINNESOTA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTIONS AND ACTIVITIES YEAR ENDED DECEMBER 31, 1979 Furniture Other and Specialized Total Land Buildings Improvements Machinery Equipment Equipment General Government City Manager $ 27,331 $ 7,344 $ 19,696 $ 291 Accounting 58,173 58,173 Assessing 7,379 7,379 Elections 24,681 24,681 Planning 17,646 5,850 11,796 Civic Center 713,139 $ 18,448 $ 664,690 30,001 Total General Government $1 848,349 $ 18,448 $ 664,690 $ 13,194 $151,726 $ 291 Public Safety $ TS 1,692 $ 34,140 5,439 Police Protection $ 191,271 $ Fire Protection 343,781 $ 70,281 238,965 15,115 19,420 Inspectional Services 2,001 1,626 375 Civil Defense 29,069 26,980 2,089 cn '� Total Public Safety $ 566,122 $ 70,281 $ 419,263 $ 51,344 $25,234 Public Works Engineering $ 52,353 $ 26,931 $ 24,982 $ 440 Street Improvements 7,327,081 $ 5,103 $ 6,857,445 464,533 Water, Sewer and Storm Sewer 4,333,716 4,333,716 3 ,7 Traffic Signal 101,561 City Garage 464,784 97,940 333,114 21,701 11,827 202 Total Public Works $12,279,495 $ 103,043 $ 333,114 $11,292,722 $ 513,165 $ 36,809 $ 642 Parks/Naturalist Parks $2,319,784 $1,527,409 $ 119,702 $ 384,920 $ 228,778 $ 26,099 $32,876 Naturalist 74,030 7,420 13,014 31,987 13,630 7,979 Total Parks Naturalist $ 2,393,814 $1,534,829 $ 132,716 $ 416,907 $ 242,408 $ 34,078 $32,876 Total General Fixed Assets Allocated to Functions $16,087,780 $1,656,320 $1,200,801 $11,709,629 $1,188,030 $273,957 $59,043 Construction in Progress $ 1,639,954 Total Fixed Assets $17,727,734 See accompanying Notes to Financial Statements. _1 ! - 1 _1 , .l l l _, _1 1 1 1 J J EXHIBIT XXXXIV CITY OF FRIDLEY, MINNESOTA STATEMENT OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION, ACTIVITY AND SOURCE YEAR ENDED DECEMBER 31, 1979 - Function January 1 , 1979 Additions Deductions December 31 , 1979 General Government - City Manager $ 27,040 $ 291 $ 27,331 Accounting 54,610 3,563 58,173 Assessing 6,788 591 7,379 Elections - voter registration 24,681 24,681 Planning 17,646 17,646 Civic Center 712,583 556 713,139 $ 843,348 $ 5,001 $ -0- $ 848,349 Public Safety Police protection $ 141,178 $ 50,093 $ 191 ,271 Fire protection 324,361 19,420 343,781 - Inspection services 1,626 375 2,001 Civil Defense 29,069 29,069 $ 496,234 $ 69,888 $ -0- $ 566,122 Highways Engineering $ 52,353 - $ 52,353 Street improvements 6,625,995 $ 701,086 7,327,081 Water, sewer and storm sewer 4,312,685 21 ,031 4,333,716 Traffic signals 101 ,561 101,561 City Garage 373,860 90,924 464,784 "` $11,466,454 $ 813,041 $ -0- $12,279,495 Parks - Parks $ 1,825,925 $ 493,859 $ 2,319,784 Naturalist 39,996 34,034 74,030 $ 1,865,921 $ 527,893 $ -0- $ 2,393,814 - Construction in progress T 965,110 $1,523,349 $848,505 $ 1,639,954 Total $15,637,067 $2,939,172 $848,505 p17,727,734 Source Special assessments $10,686,180 $1,725,187 $695,075 $11,716,292 -- State aid 236,883 65,614 302,497 General fund 2,959,615 678,668 3,638,283 Other funds 193,901 469,703 153,430 510,174 -. Liquor fund 15,421 15,421 Contributions 676,969 676,969 General obligation bonds 856,597 856,597 Water/ Sewer Public Utility Fund 2,522 2,522 Grants 8,979 8,979 J^ Total $15,637,067 $2,939,172 $848,505 $17,727,734 See accompanying Notes to Financial Statements. -53- 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. EXHIBIT XXXXV CITY OF FRIDLEY, MINNESOTA STATEMENT OF GENERAL LONG-TERM DEBT YEAR ENDED DECEMBER 31, 1979 Amount available and to be provided for the payment of general long-term debt Amount available in General Debt Service Fund $ 64,383 Amount to be provided by future taxes 272,766 Total available And to be provided $337,149 General long-term debt payable Serial Bonds $230,000 Contracts - City Garage and Garage Addition 65,836 Due to Public Utility Fund 41,313 Total general long-term debt payable $337,149 See accompanying Notes to Financial Statements. -54- FINANCIP.L SEC 'ION BY FUND III 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 from this fund. S1N3W31N1S 1VIONVNI3 01 S310N CITY OF FRIDLEY, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31 , 1979 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the City of Fridley conform to generally accepted accounting principles. The following is a summary of the significant policies: Basis of Accounting Governmental Funds. Revenue and expenditures are recognized on the modified accrual basis. Under the modified accrual basis, revenue is recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the fund incurred the liability, if measurable, except for unmatured interest on general long-term debt and special assessment debt. Proprietary Funds. Income and expenses are recognized on the accrual basis. Under the accrual basis, income is recognized in the accounting period in which they are earned and become measurable; expenses are recognized in the period incurred, if measurable. The following transactions are accounted for as described below: General Property Taxes. Revenue is recognized in the year of anticipated collection, with amounts due from the County and received early in the following year set up as a receivable (unremitted taxes) . Allowances are provided for the full amount of delinquent taxes receivable. This procedure has the effect of recognizing general property taxes as revenue when cash is received because of the uncertainty of collection of the delinquent amount. Interest Revenue on Special Assessments Receivable. Interest revenue is recognized in the year of anticipated collection oT the current principal installment. Interest Expense on General Bonded Indebtedness, Special Assessment Bonds and Utility Revenue Bonds. Interest expense is recorded as an expenditure when paid; interest is not accrued unless fully matured and not paid. Bond and Interest Payments Due January 1 . Expenditures are recognized when amounts are remitted to the paying agent (usually in December) for payment of bonds and interest. Investments. Investments are carried at cost, which approximates market. Cost includes principal, accrued interest and premium or discount. Investment revenue is recorded as earned and is allocated to the respective funds on the basis of applicable participation by each fund. -55- CITY OF FRIDLEY, MINNESOTA _ NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31 , 1979 — NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Inventories. Inventories held by the General Fund and Enterprise Funds are stated at cost which is lower than market on a first-in first-out basis and accounting controls are maintained under a perpetual system. The only other _ items of inventory would be a small quantity of supplies which were expensed when purchased. Property, Plant and Equipment-Enterprise Funds. The property, plant 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. No depreciation has been taken on water and sewer lines as Council has adopted a policy of not depreciating assets contributed by other funds. If depreciation had been charged on those assets financed by other funds, the income of the Public Utility Fund would have been $112,628, a — decrease of $205,812. General Fixed Assets. General Fixed Assets purchased are recorded as expenditures 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 the general fixed 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." Budget. A plan of financial operation is set forth in the annual budget _ adopted by the City Council . The amounts shown in the financial statements represent the original budgeted amount and all revisions made during the year. NOTE 2 - PENDING LITIGATION The City had the usual and customary types of miscellaneous claims pending at year-end, mostly of a minor nature and usually all covered by insurance carried for that purpose. At the present time, there is no significant litigation pending not covered by the City's insurance. The City is involved in several litigations; however, any liability on these cases is covered by an adequate amount of liability insurance. -56- — CITY OF FRIDLEY, MINNESOTA _ NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31 , 1979 NOTE 3 - DEFERRED CREDIT - METROPOLITAN WASTE CONTROL COMMISSION (PUBLIC UTILITY FUND) The deferred credit of the Public Utility Fund represents: 1 . The City's share of equity in the City's sewer interceptors is $378,290 (the interceptors were acquired by the Commission on January 1 , 1971 ) . This receivable will be paid to the City in annual installments with interest through 1999. Repayment will be made by issuing credits against future disposal charges from the Commission. 2. The amount of $45,684, which will be repaid with interest through 1988, is for advances made to the Commission during 1971 and 1972. 3. The remaining balance of $70,453 represents the final cost allocation for 1978. This amount will be credited against disposal charges from the Commission in 1980. 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 of the City of Fridley are covered by five pension plans: 1 ) Fridley Volunteer Firefighter's Relief Association for volunteer firefighters; 2) Fridley Police Pension Association for police officers hired prior to December 15, 1975; 3) Public Employees Retirement Association (P.E.R.A. ) Police and Fire Plan covering the City's full-time firefighters and newly-hired police officers; 4) the basic Public Employees Retirement Association (P.E.R.A.) covering certain other City civilian employees; and 5) the Coordinated Public Employees Retirement Association (P.E.R.A.) 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. A brief explanation of each of the pension plans follows: 1 . Fridley Volunteer Firefighters ' Relief Association As of December 31, 1979, there were thirty-seven active volunteer firefighters covered by this pension system. The employer's contribution in 1979 was $52,043. The pension plan provides benefits for volunteer firefighters only. It provides no benefits for full-time firefighters. The City's full-time firefighters are covered by the P.E.R.A. Police and Fire Plan. The Fridley Volunteer Firefighters ' Relief Association plan is actuarially sound; an audit report prepared by the State Auditor's Office as of December 31, 1979 shows an actuarial surplus in the Fund of $143,860. Funding for the pension plan is provided entirely from the 2% rebate received from the State of Minnesota. The source of revenue for this rebate is a 2% levy on all fire insurance premiums written in the City of Fridley. In 1979 this source of revenue provided $52,043 to the Fund which was in excess of the amount needed to meet the normal pension requirements. -57- CITY OF FRIDLEY, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31 , 1979 NOTE 4 - PENSION PLANS (ALL FUNDS) (CONTINUED) 2. Fridley Police Pension Association The Fridley Police Pension Association was incorporated on December 26, 1966 to be effective January 1, 1967. On December 31 , 1979, the plan -- covered twenty-four active orn police officers. In 1979, the employer 's contribution wa 1121 ,8 An actuarial report prepared for the Fridley Police Pension • ion by Gabriel , Roeder, Smith & — Company shows an unfunded actuarial deficit of $588,573 as of December 31 , 1978. Assets of the Association were shown as $1 ,265,283 and total liabilities of $1 ,853,856. On December 15, 1975, the City Council adopted an ordinance which had the effect of placing all newly-hired police officers in the state-wide P.E.R.A. Police and Fire Plan. This action of the City Council had the effect of substantially reducing the City's liability for newly-hired officers as the statewide P.E.R.A. Police and Fire Plan has retirement benefits less liberal than those of the Fridley Police Pension — Association. This action of the City Council has been upheld by the Minnesota District Court. In addition, a special bill was adopted by the State Legislature with an effective date of July 11, 1977, which also provided for putting new officers in P.E.R.A. The special Bill requires that the deficit in this fund be retired by 2010. The normal cost of the pension plan is 24.03% of payroll , according to — Gabriel , Roeder, Smith & Company, 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 3.9% of payroll . The total funding requirements of the plan, therefore, are approximately — 27.93% of covered payroll with the employees contributing 8% and the City 19.93%. The City receives a 2% surcharge on automobile insurance policies — written in the City. This is channeled through the State of Minnesota to the City for the purpose of helping to pay the employer 's share of pension costs. In 1979, this amounted to $62,983. The City contributed — $65,542 of its own money during 1979. The total contribution to the fund for the employer's share was $125,525. This compares with a normal cost for the employer's share of--Tre--plan, assuming there was no _ deficit, of $80,584. 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 statewide P.E.R.A. Police and Fire Plan, the Fridley Police — Pension Association Plan will eventually be phased out. It is the -58- CITY OF FRIDLEY, MINNESOTA NOTES TO THE FINANCIAL STATEEMTNS (CONTINUED -- DECEMBER 31 , 1979 NOTE 4 - PENSION PLANS (ALL FUNDS) (CONTINUED) — 2. Fridley Police Pension Association (continued) intent of the City to meet or exceed the funding requirements as provided by the Guildeines Act for this pension plan and to retire the deficit entirely on or before 2010 as is provided for by State legislation. The City bears the ultimate funding responsibility for the fund except for the amount contributed by the employees. 3. Public Employees Retirement Association - Police and Fire Plan As of December 31, 1979, there were eleven full-time employees in the statewide P.E.R.A. Police and Fire Plan. The employer 's contribution in 1979 was $21 ,122.17. The normal cost of this plan is 20% of payroll . The employee contributes 8% of payroll and the employer contributes — 12%. According to the Financial Report of the Public Employees Retirement Association, this plan was 86% funded as of June 30, 1979. The City's funding responsibility is limited to the 12% employer 's -- contribution. 4. Basic Public Employees Retirement Association Plan On December 31, 1979, there were thirty permanent employees covered by the statewide Basic Public Employees Retirement Association Plan. Employees under this plan are not covered by Social Security. This is a statewide 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 2-1/2% to -- make up the actuarial deficit. Employees contribute 8% of payroll , and employer contibutes 8% plus an additional 2-1/2% which is applied toward the acutuarial deficit. The City's contribution to this plan was $56,490.86 in 1979. State law provides that the actuarial deficit is to be retired by 1997. According to the Financial Report, the plan was 57% funded as of June 30, 1979. 5. Coordinated Public Employees Retirement Association As of December 31, 1979, there were fifty-seven permanent employees and twenty-six temporary employees covered under this plan. The employer's contribution in 1979 was $51 ,028.84. 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 1-1/2% to make up the actuarial deficit of the fund. The employee contributes 4% of payroll and the employer 4% of payroll, plus an additional 1-1/2% to retire the actuarial deficit. Under State law, the actuarial deficit is scheduled to be retired by 1997. The Financial Report shows the plan was 112% funded as of June 30, 1979. The City's responsibility is limited to the 5.5% contribution. The funding rate for the Basic and Coordinated P.E.R.A. plans, taken as a whole, was 71% on June 30, 1979. CETA employees are covered by Social Security, but no other pension plan. -59- CITY OF FRIDLEY, MINNESOTA — NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31 , 1979 NOTE 5 - LEASES The City leases space for Liquor Store No. 4 at the Holly Shopping Center, — 6586 University Avenue Northeast. A new eight-year lease was entered into on October 30, 1978 which provides for the following rental payments effective May 1 , 1979: — $13,600 per annum for each of the first four lease years $13,192 per annum for each of the fifth throught eighth years — In addition to the above amounts, the City is required to pay $61 each month for the first four years of the lease for lot maintenance and $73 per month during the fifth through the eighth years for lot maintenance. The City will — also share on a pro rata basis any increase in taxes over the base year of 1978. In addition, the City has a lease-purchase agreement for the purchase of real estate located within Fridley, known as the Christenson property. The agreement expired July 31 , 1979 but contained provision for two one-year extensions. The City has the option of purchasing the property for $275,000. Presently the City pays $1 ,700 per month rent, or $20,400 annually, plus all other operating expenses. — NOTE 6 - BONDED DEBT The City had four types of bonded debt outstanding at December 31 , 1978. They were: 1 ) general obligation bonds for the Civic Center, 2) general obligation improvement bonds, 3) general obligation utility revenue bonds, and 4) public utility revenue 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, respectively, with any deficiency to be provided for by general property taxes. The public utility revenue bonds are — payable solely from the revenue of the City's utilities fund. See the supplemental information for schedules of bond and interest maturities. NOTE 7 - REVENUE BONDS At December 31 , 1979, the Public Utility Fund had $525,250 of revenue bonds — outstanding. The net income of the Public Utility Fund, together with general property taxes has been pledged to pay the principal and interest on the bonds. The City has not had to levy taxes for the payment of these bonds or interest. -60- -- CITY OF FRIDLEY, MINNESOTA NOTES TO THE FINANCIAL STATEMENT (CONTINUED) DECEMBER 31 , 1979 NOTE 8 - BOND CONVENANTS The revenue bond issues have specific covenants which are to be followed by the City. The City has complied with these covenants. Note 9 - Industrial Revenue Bonds On December 31 , 1979 the following industrial development revenue bond issues Were outstanding: Safetrans Corporation $1 ,500,000 Perlman-Rocque Company 2,500,000 Medtronics Corp. 1,000,000 $5;000,000 NOTE 10 - VACATION AND SICK LEAVE 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 estimated on the basis of one-third of the total sick leave accumulations for all City employees. NOTE 11 - FIXED ASSETS Property, plant and equipment, and construction work in progress are stated at cost, estimated cost, or market value at the date of gift. General Fixed Assets Property, plant and equipment, and construction work in progress are recorded as expenditures of the General , Special Revenue, Capital Projects, Special Assessments, and Trust and Agency Funds at the time of their purchase. Such assets are then capitalized in the General Fixed Assets group. No depreciation is provided for these assets. Enterprise Funds Property, plant and equipment are capitalized when purchased, and depreciation is recorded using the straight-line method applied over the useful life of the asset. Depreciation rates are summarized as follows: Water and Sewer lines 2% annually Buildings 5% annually Furniture & Fixtures 10% annually Automotive Equipment 20% annually -61- STATISTICAL SECTION IV TABLE 1 CITY OF FRIDLEY, MINNESOTA GENERAL FUND EXPENDITURE ANALYSIS BY FUNCTION YEARS ENDED DECEMBER 31, 1970 THROUGH 1979 General Civic Public Public Parks and Year Government Center Safety Works Recreation Total 1970 $230,473 $50,051 $ 565,629 $ 352,661 $327,552 $1 ,526,366 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 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 1978 572,381 102,444 1 ,446,302 1 ,028,594 822,095 3,971 ,816 1979 586,836 121,937 1,499,660 1,021,464 1 ,050,466 4,280,363 . -62- TABLE 2 CITY OF FRIDLEY, MINNESOTA GENERAL FUND REVENUE BY SOURCE YEARS ENDED DECEMBER 31 , 1970 THROUGH 1979 Charges Inter- - General Licenses, for govern- Inter- Property Permits Current mental Fund Other Total Year Tax and Fines Services Revenue Transfers Revenue Revenue - 1970 $ 894, 153 $ 96,994 $ 45, 172 $ 331 ,699 $157,890 $ 73,340 $1 ,599,248 1971 955,838 120,061 56,254 395,384 239,000 67,012 1 ,833,549 1972 973, 103 192,456 47,761 541 ,938 156,500 90,056 2,001 ,814 1973 1 ,087,173 157,703 57,100 502,955 263,245 93,012 2,161 ,188 1974 1 ,344,632 179, 142 58,243 601 ,266 323,690 112,568 2,619,541 1975 1 ,619,966 174,630 59,936 648,872 335,693 115,753 2,954,850 1976 1 ,762,205 210,904 63,200 811 ,406 385,388 179,736 3,412,839 1977 1 ,703,364* 270,409 99,755 1 ,346,412 384,743 235,752 4,040,435 1978 1 ,846,370* 265,657 104,069 1 ,576,630 388,628 285,311 4,466,665 1979 1 .948,751* 303,639 103,267 1,646,918 417,000 400,317 4,819,892 *Homestead credit received for these years is reported as part of Inter-governmental Revenue rather than the General Property Tax source. -63- TABLE 3 CITY OF FRIDLEY, MINNESOTA TAX LEVIES AND TAX COLLECTIONS YEARS ENDED DECEMBER 31 , 1970 THROUGH 1979 Collections Percentage Collection of Current of Levy of Prior Ratio Year 's Taxes Collected Year 's Taxes of Total Year Total during Fiscal during Fiscal during Fiscal Total Collections Collected Tax Levy Period Period Period Collections to Tax Levy 1970 $1 ,068,629 $1 ,038,922 97.22% $12,177 $1 ,051 ,099 .9836: 1 1971 1 ,215,586 1 ,136,296 93.48 27,563 1 ,163,859 .9574: 1 1972 1 , 139,871 1 , 119,975 98.25 75,812 1 , 195,787 1 .0491 : 1 1973 1,260,386 1 ,245,095 98.79 30,551 1 ,275,646 1 .0121 : 1 -- 1974 1 ,389,672 1 ,365,737 98.28 18,974 1 ,384,711 .9964: 1 1975 1 ,662,544 1,629,395 98.01 29,767 1,659, 162 .9980: 1 1976 1 ,854,061 1 ,812,739 97.77 32,401 1 ,845, 140 .9952: 1 1977 2,057,083 2,033,169 98.84 39,505 2,072,674 1 .0076: 1 1978 2, 199,318 2,177,318 99.00 48,922 2,226,240 1 .0122: 1 1979 2,348,124 2,318,648 98.74 41,503 2,360,151 1 .0051 : 1 Note: Taxes collected include the "Homestead Credit" remitted directly to the City from the State of Minnesota. This amounted to $340,075 in 1979. — -64- TABLE 4 CITY OF FRIDLEY, MINNESOTA ASSESSED VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY (SHOWN BY YEAR OF COLLECTIBILITY) YEARS ENDED DECEMBER 31, 1971 THROUGH 1980 Fiscal Period Fiscal Period 19/1 1972 1973 19/4 1975 1976 1977 1978 1979 1980 Population 29,636 30,340 31,143 (2) 32,542 32,486 (3) 31,570 31,940 31,940*** 33,450 32,664 Real property Estimated market value $215,276;076 $224,892,331 $266,730,657 294,$ 415,,5x299 $325,394,031 $367,264,013 $405,285,288 $456,038,596 $474,610,022 $555,096,298 Assessor's L11V 1 6/,811,964 $ 69,941,515 $242,991,629 $270,273 4 $288,949,935 $327,232,236 $363,541,172 $408,865,261 $458,973,683 $522,308,032 Assessed value Homestead $ 5,271,642 $ 5,295,419 $ 16,233,935 $ 16,582,864 $ 17,104,208 $ 17,644,329 $ 19,607,606 $ 20,453,732 $ 21,633,558 $ 24,392,539 Excess and non-homestead 18,649,587 19,425,726 73,166,443 84,043,948 90,832,944 105,665,396 117,424,505 124,640,289 134,204,943 141,946,084 Area-wide allocation (3,140,753) (4,541,034) (4,812,211) (6,271,738) (7,376,217) (8,858,508) Tax-increment value Taxable value $ 23,92T,229 $ 24 721,145 $ 89,400,378 $100,626,812 (954,050) $104,796,399 $118,768,691 $132,219,900 $138,822,283 $148,462,284 ;156,526,065 Personal Property Estimated market value Taxable property $ 32,262,943 $ 36,379,141 $ 15,796,166 $ 17,323,420 $ 18,183,599 $ 18,073,064 $ 18,167,447 $ 19,340,803 $ 17,424,500 $ 17,899,900 Exempt property 10,593,848 Total market value $ 42,856,791 $ 36,379,141 $ 15,796,166 $ 17,323,420 $ 18,183,599 $ 18,073,064 $ 18,167,447 $ 19,340,803 $ 17,424,500 $ 17,899,900 Assessor's value Taxable property $ 10,162,827 $ 11,313,913(1)$ 14,390,307 $ 15,902,900 $ 16,147,000 $ 16,103,100 $ 16,296,200 $ 17,348,700 $ 17,424,500 $ 17,899,900 I Exempt property 3,337,062 rn Total assessor's value $ 13,499,889 $ 11,31,913 $ 14,390,307 $ 15,902,900 $ 16,147,000 $ 16,103,100 $ 16,296,200 $ 17,348 700 cn Taxable value: , $ 17,424,500 $ 17,899,900 { Taxable ro ert P P Y $ 3,687,092 $ 4,080,7200nf 6,187,860 $ 6,838,247 $ 6,943,210 $ 6,924,333 $ 7,007,366 $ 7,459,941 $ 7,492,535 $ 7,6 96,957 Exempt property 1,210,692 Taxable value $ 4,897,784 $ 4,080,720 $ 6,187,860 $ 6,838,247 $ 6,943,210 $ 6,924,333 $ 7,007,366 $ 7,459,941 $ 7,492,535 $ 7,696,957 Total real and personal property Estimated market value $258,132,867 $261,271,472 $282,526,823 $311,738,949 $343,577,630 $385,337,077 $423,452,735 $475,379,399 Limited market value $ 81,311,853 $476,398,583 $572,996,198 81,255,428 $257,381,936 $286,176,356 I ,�'•,' $343,335,336 $379,837,3/2 $426,213,961 $476,398,183 $540,207,932 Total taxable value $ 28,819,013 $ 28,801,865 $ 95,588,238 $107,465,059 ,•I'' $125,693,024 $139,227,266 $146,282,224 $155,954,819 $164,223,027 Ratio of market value To limited market value .315:1** .311:1** .911:1* .918:1* .888:1* .891:1* .897:1* .897:1* .968:1 .943:1 To taxable value .112:1 .110:1 .338:1 .345:1 .325:1 .326:1 .329:1 .308:1 .317:1 .287:1 Per capita valuations Estimated market value $ 8,710 $ 8,640 $ 9,072 9,580 $ 10,576 12,206 12,689 $ 14,884 $ 14,710 Taxable value $ 972 $ 952 $ 3,069 $ 3,302 $ 3,440 $ 3,981 $ 4,359 $ 17,542 $ 4,580 4,662 $ 5,028 Beginning with taxes levied in 1972, collectible in 1973, Minnesota assessed *Source - State of Minnesota Department of Revenue values tripled through elimination of the 33 1/3 ratio previously used to **Source - Anoka County Assessor's Office arrive at "adjusted" market values. Tax rates are one-third of past rates. ***No census figure for 1978 is available, therefore, the 1977 figure is used. (3) Property values include net amount allocated pursuant to Laws of 1971, Extra (1) Beginning in 1972, the value of inventories and fixtures was dropped. Cities were Session, Chapter 23, from Area-Wide 'Pool." reimbursed by the State via other State Aids_ Beginning with taxes levied in 1974, collectible in 1975, the value on which (2) 1972 and subsequent valuations reflect changes as provided for in Laws of 1971, Extra the City of Fridley's mill rate is calculated, is not the City's assessed Session, Chapter 31, amended. value but a taxable value based on the City of Fridley's assessed value minus the net loss to the Metro Tax Pool. i I I I I I i i I I I I t I I I I I I I / t I TABLE 5 CITY OF FRIDLEY, MINNESOTA HISTORY OF TAX LEVIES AND MILL RATES (SHOWN BY YEAR OF TAX COLLECTIBILITY) YEAR ENDED DECEMBER 31, 1979 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 Tax levies General Fund $1,001,209 $ 923,625 $1,075,464 $1,178,854 $1,624,144 $1.,769,965 $1,974,563 $2,114,917 $2,264,856 $2,428,376 P.E.R.A. Fund 47,402 59,566 53,954 95,895 Fire Relief Association Fund 27,523 17,602 13,776 Police Pension Association Fund 55,862 57,547 49,992 75,723 General Debt Service Funds 83,590 81,531 67,200 39,200 38,400 37,500 36,600 41,000 39,900 38,800 Capital Improvement Fund 46,596 45,920 43,401 43,368 45,000 Cn t Total $1,215,586 $1,139,871 $1,260,386 $1,389,672 $1,662,544 $1,854,061 $2,057,083 $2,199,318 $2,348,124 $2,512,176 Mill rate General Fund 34.74 32.07 10.84 10.97 14.53 14.09 14.18 14.47 14.52 14.795 P.E.R.A. Fund 1.64 2.07 .54 .89 Fire Relief Association Fund .96 .61 .14 Police Pension Association Fund 1.94 2.00 .51 .71 General Debt Service Funds 2.90 2.83 .68 .37 .35 _30 Capital Improvement Fund .37 .27 .28 .28 .237 .33 .30 .28 .274 _42.18 39.58 12.71 12.94 14.88 14.76 14.78 15.05 15.06 15.306 NOTES: 1. Beginning in 1972, the value of inventories and fixtures was dropped. Cities 3. Property values include net amount allocated pursuant to Laws of 1971, Extra Session, were reimbursed by the State via other State Aids. Chapter 23, from Area-Wide "Pool.' 2. 1972 and subsequent valuations reflect changes as provided for in Laws of 1971, Beginning with taxes levied in 1974, collectible in 1975, the value on which The City of Extra Session, Chapter 31, amended. 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 Beginning with taxes levied in 1972, collectible in 1973, Minnesota assessed Metro Tax Pool. 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. TABLE 6 CITY OF FRIDLEY, MINNESOTA STATEMENT OF VALUATIONS AND LEVIES BY CLASSES OF PROPERTY (1979 VALUATION FOR TAXES PAYABLE IN 1980) YEAR ENDED DECEMBER 31, 1979 Assessed Valuation Assessed Assessed Before Valuation Assessed Valuation Contribution Contribution Value Allocated to Adjusted Percent Dollars Class of to Metro Tax to Metro Tax Received from Tax Increment Assessed of Total of City Property Pool Pool Metro Pool Financing Value City Tax Tax Commercial $ 23,107,469 $ (4,341,790) $ (97,309) $ 18,668,370 11.373% $ 285,717.66 Industrial 44,560,814 (8,372,777) 36,188,037 22.048 553,881.87 F.M.C. #85 3,993,969 (750,449) 3,243,520 1.976 49,645.63 Gas 1,222,963 (229,789) 993,174 .605 15,195.16 Electric 2,480,025 (465,986) 2,014,039 1.227 30,827.95 P.U.-R.E. and cm Mach.* 393,646 (73,964) 319,682 .195 4,886.77 V Vacant Land 1,314,811 (4,945) 1,309,866 .799 20,057.61 Apartments 19,327,048 (850,296) 18,476,752 11.257 282,800.19 Residential 77,634,835 (1,500) 77,633,335 47.298 1,188,213.01 Distribution $5,376,247(1) 3.222 80,950.15 TOTALS $174,035,580 $(14,234,755) $5,376,247 $(954,050) $158,846,775 100.00% $2,512,176.00 *Public Utilities (Real Estate and Machinery) (1) This represents the °assessed value° distributed to Fridley from the metro tax pool. The previous year's City mill rate is used to arrive at the $80,950.15 distribution. The assessed value for the first six classes of property shown above has been reduced for local taxable value to 81.2104% 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 110.552. This money then goes into the Metro Pool. The City of Fridley received $80,950.15 from this pool. The tax shown for Residential is the total amount received by the City. Owners of Homestead Residential properties do not pay this full amount. The State pays up to $550 per homestead in credit to the County, and the County in turn distributes this to various local governments as part of the levy request. An additional refund may be received by the taxpayer directly from the State depending on income and age. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 TABLE 7 CITY OF FRIDLEY, MINNESOTA SIGNIFICANT MINNESOTA TAX POLICIES _ YEAR ENDED DECEMBER 31 , 1979 GENERAL All non-exempt property in Minnesota is subject to taxation by local taxing districts. -- The tax levied on a property is determined by multiplying its assessed value by the tax rate. The tax rate (mills) is determined by the County Auditor, dividing each tax levy by the assessed valuation (taxable value) . Properties are valued by assessors at least once every four years. Minnesota laws limit the amount by which any property may be increased in one year. A Limited Market Value (LMV) is used to determine a property's assessed value for tax purposes. The Minnesota Department of Revenue appraises representative properties annually, 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 used in determining municipal and school district state aids. The Limited Market Value is multiplied by the appropriate percentage to arrive at assessed value. This percentage varies by class of property. Residential homestead property. Part of the- LMV said to be "homestead" ($21 ,000 for — taxes due in 1980) is assessed at 18%, and the balance at 30%. The assessed value of a homestead residence with a LMV of $50,000 would be $12,480 for taxes collectible in 1980 (see "Homestead Credit" note below) . Residential non-homestead property of 1-2-or-3 units is assessed at 32% of its LMV. The assessed value of a non-homestead residence rental property) with a LMV of $50,000 is $16,000. Apartments of 4 units or more are assessed at 40% ($50,000 value x 40% = $20,000). Industrial/commercial/utility property is assessed at 43% of LMV. (LMV of utilities is computed by the Minnesota Department of Revenue. ) HOMESTEAD CREDIT Homestead taxes are reduced by a 50% credit (maximum $550) . This credit is subtracted on the tax statement, and the taxpayer pays only the net amount; homestead credits are reimbursed by the State to the taxing districts in proportion to their levies, thus relieving the property tax burden. "CIRCUIT BREAKER" TAX RELIEF Further residential property tax credits are gauged by percentages of the gross property tax to household income: To the extent a homeowner 's tax or a renter's imputed tax exceeds certain percentages of household income ( 1% for — lower income groups, up to 4% for incomes of $100,000 or more), homeowners or renters may receive State credits up to $1 ,000 (combined homestead and income-adjusted credits) . -68- TABLE 8 CITY OF FRIDLEY, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS YEARS ENDED DECEMBER 31 ,1969 THROUGH 1979 Ratio Total Ratio of Outstand- _ of Total ing Current Collec- Current Collec- Delin- tions and Current Current tions to quent to Delin- - Assess- Assess- Amount Assess- Current quent Fiscal ments ments Due ments Total Levy Assess- Year Due Collected (Percent) Collected Collected (Percent) ments 1969 $683, 141 $563,413 82.47% $158,713 $722, 126 105.71% $744,043 1970 681 ,841 572,939 83.03 62,085 635,024 93.13 818,438 1971 688,887 606,297 88.01 133,150 739,447 104.34 751 ,726 1972 746,971 634,697 84.97 119,204 753,901 100.93 727,909 1973 697,797 619,236 88.74 87,793 707,029 101 .32 724,891 _ 1974 913,497 742, 105 81 .24 81 ,990 824,095 90.21 782,751 1975 953,453 696, 193 73.02 273,771 969,964 101 .73 736,530 -- 1976 942,965 767,498 81 .39 223,843 991 ,341 105.13 706,413 1977 918,918 801,584 87.23 168,821 970,405 105.60 655,073 1978 777,007 699,145 89.98 288,525 987,670 127.11 439,385 1979 678,501 606,763 89.43 134,352 741 ,115 109.23 379,149 -69- TABLE 9 CITY OF FRIDLEY, MINNESOTA DEBT SERVICE REQUIREMENTS - ALL FUNDS YEAR ENDED DECEMBER 31 , 1979 Year Principal Interest Total 1980 $ 440,000 $ 280,042.50 $ 720,042.50 1981 795,000 292,255.00 1 ,087,255.00 1982 2,410,000 240,562.50 2,650,562.50 -- 1983 585,000 123,985.00 708,985.00 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 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 1995 $6,545,000 $1 ,295,281 .25 $7,840,281 .25 SUMMARY OF OUTSTANDING BONDED INDEBTEDNESS Bonds outstanding January 1, 1979 General debt service $ 260,000 Special assessment - permanent 4,947,785 Public utilities - sinking 632,215 Special assessment - temporary 545,000 $6,385,000 Bonds issued during 1979 Special assessment - temporary $1 , 155,000 Bonds retired during 1979 General debt service $ 30,000 Special assessment - permanent 778,035 Public utilities - sinking 106,965 Special assessment - temporary 80,000 $ 995,000 Balance and purpose of bonds outstanding on December 31 , 1979 General debt service $ 230,000 Special assessment - permanent 4, 169,750 — Public utilities - sinking 525,250 Special assessment - temporary 1,620,000 $6,545,000 -70- TABLE 10 CITY OF FRIDLEY, MINNESOTA _ DEBT SERVICE REQUIREMENTS - GENERAL OBLIGATION BONDS CIVIC CENTER YEAR ENDED DECEMBER 31 , 1979 Year Principal Interest Total 1980 $ 30,000 $ 7,480.00 $ 37,480.00 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 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 _ $230,000 $29, 165.00 $259, 165.00 -71- TABLE 11 CITY OF FRIDLEY, MINNESOTA DEBT SERVICE REQUIREMENTS - PERMANENT BONDS SPECIAL ASSESSMENT FUNDS — YEAR ENDED DECEMBER 31 , 1979 Year Principal Interest Total 1980 $ 360,000 $138,717.21 $ 498,717.21 — 1981 657,250 167,529.77 824,779.77 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 1986 305,000 55, 166.25 360, 166.25 r 1987 290,000 40,415.00 330,415.00 1988 215,000 27,450.00 242,450.00 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 $4,169,750 $890,985.80 $5,060,735.80 -72- TABLE 12 CITY OF FRIDLEY, MINNESOTA DEBT SERVICE REQUIREMENTS - TEMPORARY BONDS — SPECIAL ASSESSMENT FUNDS YEAR ENDED DECEMBER 31, 1979 Year Principal Interest Total 1980 $ 119,000.00 $ 119,000.00 1981 102,200.00 102,200.00 1982 $1 ,620,000.00 85,750.00 1 ,705,750.00 $1 ,620,000.00 $ 306,950.00 $1 ,926,950.00 -73- TABLE 13 CITY OF FRIDLEY, MINNESOTA DEBT SERVICE REQUIREMENTS PUBLIC UTILITY REVENUE AND WATER IMPROVEMENT BONDS YEAR ENDED DECEMBER 31 , 1979 Year Principal Interest Total 1980 $ 50,000 $14,845.29 $ 64,845.29 -- 1981 107,750 16,065.23 123,815.23 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 $525,250 $68, 180.45 $593,430.45 -74- TABLE 14 CITY OF FRIDLEY, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN YEAR ENDED DECEMBER 31 , 1979 Assessed value $174,035,580 (A) Debt limit 6.667 percent of assessed value $11,602,952 — Amount of debt applicable to debt limit: Total bonded debt $ 6,545,000 (B) Deductions General debt service fund assets $ 64,383 Special assessment bonds 5,789,750 Water revenue and improvement bonds 525,250 6,379,383 Total amount of debt applicable to debt Limit 165,617 Legal Debt Margin $11 ,437,335 *Includes $8,858,508 negative adjustment from "Fiscal Disparity" area wide tax base. Note (A) : M.S.A. Section 475.53 (see following page) Note (B) : M.S.A. Section 475.51 (see following page) - -75- TABLE 14 CONTINUED CITY OF FRIDLEY, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED) YEAR ENDED DECEMBER 31 , 1979 Note (A) : M.S.A. Section 475.53 et seq. Limit on Net Debt "Subdivision 1 . Generally. Except as otherwise provided in section 475.51 , no municipality, except a school district or a city of the first class, shall incur or be subject to a net debt in excess of 6.67 percent of the assessed value." Note (B): M.S.A. Section 475.51 Definitions "Subdivision 4. "Net Debt" means the amount remaining after deducting from its gross debt the amount of current revenues which are applicable within the current fiscal year to the payment of any debt, and the aggregate of the principal of the following: (1 ) Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially benefited thereby, including those which are general obligations of the municipality issuing them, if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments. (2) Warrants or orders having no definite or fixed maturity. — (3) Obligations payable wholly from the income from revenue producing conveniences. (4) Obligations issued to create or maintain a permanent improvement revolving fund. (5) Obligations issued for the acquisition, and betterment of public waterworks systems, and public lighting, heating or power systems, and of any combination thereof or for any other public convenience from which a revenue is or may be derived. (6) Debt service loans and capital loans made to a school district under the provisions of sections 124.42 and 124.43. (7) Amount of all money and the face value of all securities held as a debt service fund for the extinguishment of obligations other than those deductible under this subdivision. (8) All other obligations which under the provisions of law authorizing their issuance are not to be included in computing the net debt of the municipality." -76- TABLE 15 CITY OF FRIDLEY, MINNESOTA PROPERTY TAX RATES PER 1,000 OF ASSESSED VALUE AND TAX LEVIES ALL OVERLAPPING GOVERNMENTS YEARS ENDED DECEMBER 31, 1971 THROUGH 1980 Tax Rates Totals Schoo Schoo hoo Schoo pecia hoo hoo '2 boo District District District District Districts Districts Districts Districts District Year City No. 11 No. 13 No. 14 No. 16 County Total No. 11 No. 13 No. 14 No. 15 1971 42.18 Mills 257.09 Mills 211.08 Mills 273.11 Mills 217.43 Mills 67.78 Mills 2.87 Mills 369.92 Mills 323.91 Mills 385.94 Mills 330.26 Mills 1972 39.58 173.68 162.66 • 160.27 172.87 73.59 5.60 292.45 281.43 " 279.04 291.64 u 1973 12.71 " 54.92 49.88 " 52.54 56.01 " 21.77 • 2.38** • 91.78 • 86.74 89.40 92.87 ° 1974 12.94 54.85 • 53.49 55.04 ' 54.44 • 29.49 2.89** • 100.17 98.81 100.36 99.76 " 1975 14.88 " 60.19 " 54.12 60.33 66.05* " 22.22 4.77** " 102.06 " 95.99 • 102.20 107.92 " 1976 14.76 " 55.27 " 49.16 55.18 • 61.60* • 22.16 3.23** • 95.42 • 89.31 95.33 " 101.75 ° 1977 14.78 " 58.40 " 47.26 54.65 • 63.62* • 22.21 3.43** • 98.82 87.68 " 95.07 • 104.04 " 1978 15.05 55.84 ° 46.53 • 54.26 " 61.68* " 24.40 • 3.14** " 98.43 " 89.12 • 96.85 ' 104.27 • 1979 15.06 " 47.71 " 45.04 47.17 62.25* " 24.29 3.35** ' 90.41 • 87.74 • 89.87 104.95 ' 1980 15.31 " 43.21 " 46.73 " . 45.08 " 61.83 25.84 3.60** • 87.44 • 91.48 • 89.83 106.58 • *Vocational/Technical District No. 916 included in District No. 16. V v **No Water Shed District in School District No. 11. i This table reflects the new method of determining assessed valuations as required by 1971 legislation. This change results in an assessed valuation of approximately 35% of market value instead of approximately 11% under the previous formula. Yearly Tax Total Total Local Percentage Net Contribution Increment_ Tax Year Tax Levies Tax Levies Increase To Metro Pool District Levies 1971 $1,164,519 $230,075 $1,418,753 $3,711,783 $1,391,814 $1,871,292 $ 79,236 $ 9,867,472 17% 1972 1,139,978 171,539 1,087,369 2,292,156 1,195,816 2,119,529 161,290 8,167,677 -21% 1973 1,214,927 183,201 1,108,087 2,570,517 1,182,508 2,080,956 204,380 8,544,576 5% 1974 1,390,598 211,658 1,332,878 3,001,552 1,314,940 2,201,959 297,343 9,750,928 14% 1975 1,662,685 268,717 1,414,161 3,417,636 1,617,961* 2,482,854 520,369 11,384,383 17% 1976 1,855,229 300,800 1,403,823 3,537,777 1,698,993* 2,785,357 380,806 11,962,785 5% 1977 2,057,083 360,242 1,499,855 3,863,402 1,948,613* 3,092,238 454,078 13,275,511 11% 1978 2,199,318 355,565 1,568,135 3,987,358 2,017,736* 3,569,286 426,450 14,123,848 6% 1979 2,348,124 330,743 1,634,858 3,668,695 2,204,204* 3,788,253 470,367 14,445,244 2% $ 922,702 $15,367,946 1980 2,512,176 319,712 1,786,183 3,606,461 2,395,401* 4,235,650 542,080 15,397,663 7% 1,083,986 X5,221 16,566,870 *Includes Vocational/Technical District No. 916. I I I I I 1 I I t 1 I I I I I 1 I I TABLE 16 CITY OF FRIDLEY COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT AND'COMPARATIVE DEBT RATIOS YEAR ENDED DECEMBER 31, 1979 —" % of Debt Net Debt Gross Sinking Net Applicable Applicable Governmental unit Debt Funds Debt to City to City Direct & overlapping debt Direct debt: City of Fridley $ 6,545,000 $ 4,829,151 $ 1,715,849 100.00% $1,715,849 Overlapping debt: School Districts No. 11 $ 30,800,000* $ 4,126,130 $ 26,673,870 1.739 $ 463,859 _. No. 13 4,540,000* 1,500,974 3,039,026 32.413 985,039 No. 14 3,713,000* 514,265 3,198,735 100.000 3,198,735 No. 16 8,175,000* 2,633,059 5,541,941 44.549 2,468,879 Metro Transit $ 17,850,000 $ 2,206,000 $ 15,644,000 1.501 $ 234,816 Metro Council $ 35,660,000 $21,731,857 $ 13,928,143 1.738 $ 242,071 Anoka County $ 605,000 $ 92,992 $ 512,008 22.478 $ 115,089 Vocational/Technical District No. 916 $ 6,840 000 1. 814,249 $ 6,025,751 2.803 $ 168,902 Total overlapping debt $108,183,000 $33,619,526 $ 74,5631474 $7,877,390 Total direct and overlapping debt $114,728,000 $38,448,677 $ 76,279,323 $9,593,239 Direct Overlapping Total Debt Debt Ratio of net debt to taxable value 1:17.12 1:95.71 1:20.85 Percent of net debt to taxable value 5.84% 1.04% 4.80% Ratio of net debt to market value 1:59.73% 1:333.94 1:72.74 Percent of net debt to market value 1.67% 0.30% 1.37% Per capita debt $293.69 $ 52.53 $241.16 The above debt excludes the City's share of debt applicable to the Metropolitan Council, Metropolitan Waste Control Commission, the Metropolitan Airport Commission and the North Suburban Hospital District which is paid from users' fees. *Does not include State loans. -78- TABLE 17 CITY OF FRIDLEY, MINNESOTA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENT EXPENDITURES _ YEARS ENDED DECEMBER 31 ,1970 THROUGH 1979 Total Total Ratio of Debt Fiscal Debt General Service to Year Principal Interest Service Expenditures General Expenditures _ 1970 $60,000 $45,975 $105,975 $1 ,687,787 .0628: 1 1971 90,000 48,495 138,495 1 ,846,757 .0750: 1 1972 60,000 23,520 83,520 1 ,953,180 .0428: 1 r 1973 65,000 14,620 79,620 2,341 ,081 .0340: 1 1974 25,000 12,685 37,685 2,520,672 .0150: 1 1975 25,000 11,885 36,885 2,899,724 .0127: 1 1976 25,000 11 ,073 36,073 3,281 ,818 .0110: 1 -- 1977 25,000 10,247 35,247 3,601 ,933 .0098: 1 1978 25,000 9,422 34,422 3,971 ,816 .0087: 1 1979 30,000 8,500 38,500 4,280,363 .0090: 1 -79- I 1 1 I I I I 1 I I F> I 1 I I I I I ) I I TABLE 18 CITY OF FRIDLEY, MINNESOTA RATIO OF NET BONDED DEBT TO PROPERTY VALUES AND NET BONDED DEBT PER CAPITA GOVERNMENT EXPENDITURES YEARS ENDED DECEMBER 31, 1970 THROUGH 1979 Net Ratio of Net Net Bonded Fiscal Taxable Gross Less Debt Bonded Bonded Debt to Debt Per Year Population Value Bonded Debt Service Funds Debt Assessed Value Capital ao 1970 29,233 $ 23,591,328 $9,672,000 $3,913,038 $5,758,962 .2441:1 197 0 1971 29,636 28,819,013 9,655,000 3,655,759 5,999,241 .2082: 1 202 1972 30,240 28,801,865 9,756,000 3,870,814 5,885,186 .2043: 1 194 1973 31, 143 95,588,238 9,852,000 3,801,883 6,050,117 .0633: 1 194 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 1977 31 ,940 139,227,266 6,775,000 4,209,680 2,565,320 .0184:1 80 1978 33,450 146,282,224 6,385,000 4,684,489 1,700,511 .0116: 1 51 1979 32,664 155,954,819 6,545,000 4,829,151 1,715,849 .0110: 1 53 TABLE 19 CITY OF FRIDLEY, MINNESOTA INSURANCE COVERAGE YEAR ENDED DECEMBER 31 , 1979 — All risk, direct physical loss coverage Building and contents (except liquor stock) - 90% co-insurance $ 5,645,002 _ Boiler insurance 500,000 Contractor's equipment 429,292 . Signs 16,148 All risk, fire and extended coverage-liquor stores and stock 193,000 Comprehensive liability — Bodily injury Each person 500,000 Each occurrence 500,000 Property damage 100,000 — Liquor liability 300,000/500,000 Excess liability 1 ,000,000 Automobile Liability 250,000/500,000 Comprehensive and collision Passenger vehicles Actual cash value Other vehicles Stated value Business interruption, liquor stores 141 ,000 Money and securities, inside and outside premises, all locations 15,000 Workers ' compensation Statutory — Errors and ommission insurance 1 ,000,000 PRINCIPAL OFFICIALS' ANNUAL SALARIES AND SURETY BONDS — YEAR ENDED DECEMBER 31 , 1979 Surety Name Position Salary Bond Nasim M. Qureshi City Manager $39,650 $50,000 — Virgil C. Herrick City Attorney 15,600** None* Marvin C. Brunsell City Clerk 29,500 1 ,000 Marvin C. Brunsell Treasurer 29,500 50,000 Vacant Public Works Director 30,400 None* James P. Hill Public Works Director 30,000 None* Robert Aldrich Fire Chief 24,800 None* Charles A. Boudreau Parks and Recreation Director 26,750 None* — *All employees are covered by a blanket faithful performance bond of $100,000. — **Covers first thirty hours per month of basic service, balance billed at $40 per hour. -81- TABLE 20 CITY OF FRIDLEY, MINNESOTA CITY CAPITAL IMPROVEMENT FINANCING POLICY YEAR ENDED DECEMBER 31 , 1979 — The policy of the City of Fridley regarding financing of major capital improvements is as follows: STREET, CURB AND GUTTER, SIDEWALK AND STORM SEWER IMPROVEMENTS It is the policy of the City to assess 100% of the cost of street surfacing, curb and gutter improvements and storm sewer improvements against benefited properties, less aid for construction received from the State of Minnesota. Properties owned by the City, the school districts, or other tax exempt organizations are treated in the same manner and assessed at the same rate as taxable properties. WATER AND SEWER IMPROVEMENTS Water and sewer lateral improvements are 100% assessed against benefited properties. Properties owned by tax exempt organizations are treated the same as taxable properties. The water and sewer main system has been substantially assessed against benefited properties. An exception to the above policy has been the cost of looping certain water system main lines which benefited no particular properties. This unassessed portion of the improvement cost is being financed by the Public Utility Fund. WELLS, RESERVOIRS, PUMPING STATIONS, ETC. These improvements have been financed from the income of the Public Utility Fund. ACQUISITION OF PARK LAND, CIVIC CENTER, ETC. It is the policy of the City to finance small park capital improvements out of the current General Fund operating budget. It is the policy of the City to finance major park capital improvements, such as the purchase of large parcels of land, with general obligation bonds. The City currently has one general obligation bond issue outstanding. This is for the Civic Center. The balance outstanding for this issue on December 31 , 1979 was $230,000. OTHER CAPITAL IMPROVEMENTS It is the policy of the City to finance capital improvements such as fire trucks and public works equipment, etc. from the current General Fund operating budget. In order to stop fluctuations in the amount budgeted annually for such items, the City started a Capital Improvement Revolving Fund in 1976. The balance in this fund on December 31 , 1979 was $299,629. The purpose of the fund is to finance capital outlay items normally financed through the General Fund. No purchases have been made through this fund to date. REVENUE SHARING The General Fund is used as the vehicle for budgeting and expenditure of Revenue Sharing monies. In 1979, 24% of Revenue Sharing funds were used for capital outlay items, 32% for other expenses and 44% for personal services. -82- TABLE 21 CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION YEAR ENDED DECEMBER 31 , 1979 — Date of Incorporation (Village of Fridley) July 1 , 1949 — Date of Adoption of City Charter September 10, 1957 effective September 25, 1957 — Form of Government Council/Manager Fiscal year begins January 1 — Area of City 11 square miles Bond rating Aa Miles of streets and sidewalks ( including State and County) City streets 100.8 — Trunk highways 10.8 County roads 16.0 Sidewalks 9.5 — Miles of sewer Storm 37.61 Sanitary 98.27 Miles of water mains 102.49 Fire protection Number of stations 1 Volunteer Firefighters 34 _ Full-time Firefighters 5 Fire rating Class 5 Police protection — Number of stations 1 Number of sworn officers 33 ALL BUILDING PERMITS Residential Multiple Commercial/ Year No. Value Dwellings Industrial All Other Total — 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 — 1972 418 11 ,270,165 9,501,531 4,780,947 2,408,115 27,960,758 1973 99 2,507,865 -0- 4,482, 184 630,014 7,620,063 1974 115 3,025,142 -0- 4,354,649 3,810,271 11 ,190,062 1975 109 3,845,673 175,850 4,683,913 1 ,337,616 10,043,052 1976 179 6,786,840 -0- 6,303,847 1 ,164,862 14,255,549 1977 223 8,805,695 5, 170,196 5,596,312 3,271 ,108 22,843,311 1978 92 3,988,131 425,208 5,247,268 1,532,535 11 ,193,142 — 1979 108 4,250,781 88,600 7,755,397 1 ,850,709 13,945,487 -83- — TABLE 21 CONTINUED CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED) YEAR ENDED DECEMBER 31 , 1979 Number of street lights 907 Number of traffic signal installations 28 Number of other special signal installations 1 Number of civil defense warning sirens 8 Permanent Employees--As of December 31 Number 1970 115 1971 105 1972 109 1973 118 1974 123 1975 130* 1976 129* 1977 148* 1978 141* 1979 122 Elections Registered voters--last General Election ( 1978) 14,405 Number of votes cast last General Election ( 1978) 11 , 143 Percent (%) voting 77% Population 1950 Federal Census 3,796 1960 Federal Census 15,182 1965 Special Federal Census 24,789 1970 Federal Census 29,233 1971 Estimated by Metropolitan Council 29,636 1972 Estimated by Metropolitan Council 30,240 1973 Estimated by Metropolitan Council 31 , 143 _ 1974 Estimated by Metropolitan Council 32,542 1975 Estimated by Metropolitan Council 32,486 1976 Estimated by Metropolitan Council 31 ,570 1977 Estimated by Metropolitan Council 31 ,940 1978 Estimated by Metropolitan Council 33,450 1979 Estimated by Metropolitan Council 32,664 *Includes CETA -84- TABLE 21 CONTINUED — CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED) YEAR ENDED DECEMBER 31 , 1979 Parks and Recreation Areas Developed 425 Acres — Undeveloped 125 Acres Total 550 Acres — City Parks Schools Total Number of: Hockey rinks 10 0 10 General skating rinks 20 0 20 Playgrounds 10 9 19 — Swimming beaches 1 0 1 Swimming pools 0 1 1 Wading pools 0 0 0 — Picnic grounds 1 0 1 Day camp sites 1 0 1 Baseball diamonds 1 5 6 Softball diamonds 16 16 32 — Outdoor basketball courts 19 13 32 Tennis courts 22 17 39 Horseshoe courts 8 0 8 Archery ranges 1 0 1 Permanent playground buildings 0 0 0 Permanent picnic shelters 8 0 8 Soccer fields 1 0 1 Football fields 1 9 10 Municipal water system source — Primary source City of Fridley Water Plant (wells)--Capacity of 15 million gallons per day — Secondary source City of Minneapolis (Mississippi River)--35 million gallons per day Number of water connections December 31 , 1979 7,266 Connections Daily average consumption (gallons) 3. 1 million gallons — Elevated storage capacity 5 million gallons Number of fire hydrants 1 ,005 Municipal Sewer System — Disposal--through Metropolitan Waste Control Commission Number of connections December 31 ,1979 7,399 — Average daily flow ( includes infiltration/inflow) 3.42 million gallons -85- TABLE 22 CITY OF FRIDLEY, MINNESOTA _ GENERAL INFORMATION YEAR ENDED DECEMBER 31 , 1979 LOCATION - TRANSPORTATION The City of Fridley, with a total land area of eleven square miles and an estimated population of 32,664, is located at the north boundary of Minneapolis and Columbia Heights, about eight miles from the Minneapolis central business district. Freight service is provided the area by local and interstate truck lines and the Burlington Northern Railroad and Minnesota Transfer Railway; transportation is available — through Metropolitan Transit Commission facilities. Highways serving Fridley include Interstate #694 (beltline around the metropolitan area) and State Highways #65 and #47. Commercial airline service is available at Minneapolis-St. Paul — International Airport, approximately twenty-five miles south, and private business aviation facilities are available at the Anoka County and Crystal Airports, both operated by the Metropolitan Airport Commission. LARGER EMPLOYERS Larger employers in the City include: No. of Employer Product or Service Employees FMC Corporation Pumps and naval ordinance 3,640 Onan Corporation Portable generators, electronic 1 ,900 — equipment Medtronics, Inc. Electra-medical devices 1 ,800 Unity Hospital Medical services 1 ,500 Target Stores & Warehouse Discount store & warehouse 1 ,230 Burlington Northern Railroad Northtown Yard 1 ,043 Totino's Finer Foods Frozen foods 453 Kurt Manufacturing Machine parts 375 LaMaur, Inc. Cosmetics 347 Holiday Village North Discount department store 325 Independent School District #14 Fridley School District 315 Carter-Day Company Air control equipment 300 Minco Products, Inc. Electronic devices 280 Safetran Systems Corporation Railroad accessories 277 _ Barry Blower Company Air moving devices 250 Midland Cooperatives Warehousing and oil blending 226 plant Holly Shopping Center Retail and service establishments 200 — Strite-Anderson Manufacturing Aluminum die castings 175 -86- TABLE 22 CONTINUED CITY OF FRIDLEY, MINNESOTA GENERAL INFORMATION (CONTINUED) YEAR ENDED DECEMBER 31 , 1979 LIMITED MARKET VALUE Fifteen of the largest taxpayers include: 1979 Payable 1980 Value Market Rank Taxpayer Business Value — 1 . Onan Corporation Portable electric generators $15,458,700 2. FMC Corporation Naval ordinance 14,814,300 3. Medtronics, Inc. Electro-medical devices 14,068,100 — 4. Target Stores Discount store & warehouse 9,304,400 5. Maurice Fillister Georgetown apartments 7,213,000 6. LaMaur, Inc. Cosmetics 5,858,900 — 7. Midland Cooperatives Warehousing & oil & grain products 4,485,600 8. Five Sands Development Meadowrun Apartments 4,465,000 9. Carter-Day Air control equipment 4,068,700 10. Holiday Village Discount department store 4,005,800 -- 11 . Honeymead Products Lindseed oil & grain products 3,925,000 12. Pillsbury Totino' s Frozen foods 3,604,800 13. Black Forest Apartments Apartments 3,524,600 14. Rice Creek Townhouses Townhouses 3,446,100 15. Wickes (Twin Stores) Discount furniture show/warehouse 2,420,600 Of the City' s total assessed value, approximately 56% is residential ( including apartments, mobile home parks and nursing homes) and 44% commercial , industrial and utility property. FINANCIAL SERVICES — The Fridley State Bank has had deposits as follows as of December 31 each year: 1974 $11,002,894 1977 16,585,000 — 1975 12,759,779 1978 18,032,565 1976 13,898,431 1979 17,884,000 Twin City Federal Savings and Loan Association, Minneapolis, has one of its branch offices in Fridley. MEDICAL FACILITIES Medical facilities in Fridley include Unity Hospital , a 275-bed hospital with an adjacent clinic (Unity Professional Building) , Fridley Convalescent Home, the Fridley -- Medical Center; and another nursing home, Lynwood Manor . _ -87- TABLE 22 CONTINUED CITY OF FRIDLEY, MINNESOTA GENERAL INFORMATION (CONTINUED) YEAR ENDED DECEMBER 31 , 1979 EDUCATION Fridley is served by four school districts, the major portion located within Fridley Independent School District No. 14. The Fridley School District operates three elementary schools, a junior high and a senior high school , employing 232 certified personnel and 82 additional employees in the education of about 3,955 students. Grace Parochial High School has an enrollment of 996. Portions of the Columbia Heights School District (13), the Spring Lake Park School District ( 16) and Anoka/Hennepin School District ( 11 ) also lie within the City of Fridley. Those districts have an enrollment of 2,748 students living within the City of Fridley. — Colleges and universities, vocational-technical and specialized training schools are located throughout the metropolitan area within easy commuting distances of Fridley. -88-