2013 CAFR
CITY OF FRIDLEY, MINNESOTA
Comprehensive Annual Financial Report
For the Year Ended
December 31, 2013
Prepared by:
Finance Department
Darin R. Nelson
Finance Director
CITY OF
FRIDLEY
CITY OF FRIDLEY, MINNESOT
A
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2013
TABLE OF CONTENTS
EXHIBIPAG
TE
I. INTRODUCTORY SECTION
Letter of Transmittal3
Certificate of Achievement 9
Elected and Appointed Officials10
City Administrative Organizational Structure 201312
II. FINANCIAL SECTION
Independent Auditor's Report17
Management's Discussion and Analysis21
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net PositionA-135
Statement of ActivitiesA-236
Fund Financial Statements:
Balance Sheet - Governmental FundsA-338
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental FundsA-440
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of ActivitieA-543
Statement of Net Position - Proprietary FundsA-644
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary FundsA-746
Statement of Cash Flows - Proprietary FundsA-848
Statement of Fiduciary Net PositionA-950
Notes to Financial Statements51
Required Supplementary Information:
Budgetary Comparison Schedule - General FundB-188
Budgetary Comparison Schedule - Note to RSI93
Schedule of Funding Progress - Retiree Health Plan94
Combined, Combining and Individual Fund Statements and Schedules:
Combined Balance Sheet - Nonmajor Governmental FundsC-198
Combined Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental FundsC-299
CITY OF FRIDLEY, MINNESOT
A
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2013
TABLE OF CONTENTS
EXHIBIPAG
TE
Combining Balance Sheet - Nonmajor Special Revenue FundC-3102
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue FundsC-4104
Special Revenue Funds:
Cable TV Fund:
Comparative Balance SheetD-1106
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and ActualD-2107
Grant Management Fund:
Comparative Balance SheetD-3108
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and ActualD-4109
Solid Waste Abatement Fund:
Comparative Balance SheetD-5110
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and ActualD-6111
Drug and Gambling Forfeiture Fund:
Comparative Balance SheetD-7112
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and ActualD-8113
Police Activity Fund:
Comparative Balance SheetD-9114
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and ActualD-10115
Springbrook Nature Center Fund:
Comparative Balance SheetD-11116
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and ActualD-12117
Capital Project Funds:
Capital Equipment Fund:
Comparative Balance SheetE-1120
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and ActuaE-2121
Capital Improvement Fund:
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and ActualE-3122
CITY OF FRIDLEY, MINNESOT
A
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2013
TABLE OF CONTENTS
EXHIBIPAG
TE
Internal Service Funds
Combining Statement of Net PositionF-1124
Combining Statement of Revenues, Expenses and Changes in Net PositionF-2125
Combining Statement of Cash FlowsF-3126
Employee Benefits Fund:
Comparative Statement of Net PositionF-4127
Comparative Statement of Revenues, Expenses and Changes in Net PositioF-5128
Comparative Statement of Cash FlowsF-6129
Self Insurance Fund:
Comparative Statement of Net PositionF-7130
Comparative Statement of Revenues, Expenses and Changes in Net PositioF-8131
Comparative Statement of Cash FlowsF-9132
Information Systems Fund:
Comparative Statement of Net PositionF-10133
Comparative Statement of Revenues, Expenses and Changes in Net PositioF-11134
Comparative Statement of Cash FlowsF-12135
Housing and Redevelopment Authority (Component Unit):
Balance Sheet - Governmental FundsG-1138
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental FundsG-2140
Subcombining Balance Sheet - Nonmajor Capital Project FundsG-3142
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Capital Project FundsG-4144
Agency Funds:
Combining Statement of Assets and LiablilitesH-1148
Statement of Changes in Assets and LiabilitiesH-2149
CITY OF FRIDLEY, MINNESOT
A
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2013
TABLE OF CONTENTS
EXHIBIPAG
TE
III. STATISTICAL SECTION (Unaudited
)
Financial Trends:
Net Position by ComponentTable 1152
Changes in Net PositionTable 2154
Fund Balances - Governmental FundsTable 3158
Changes in Fund Balances - Governmental FundsTable 4160
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of Taxable PropertyTable 5162
Direct and Overlapping Property Tax Capacity RatesTable 6164
Principal Property TaxpayersTable 7167
Debt Capacity:
Property Tax Levies and CollectionsTable 8168
Ratios of Outstanding Debt by TypeTable 9169
Direct and Overlapping Govermental Activities DebtTable 10170
Demographic and Economic:
Legal Debt Margin InformationTable 11171
Pledged Revenue CoverageTable 12172
Operating Information:
Demographic and Economic StatisticsTable 13174
Principal EmployersTable 14175
Full-Time Equivalent City Government Employees by Function/ProgramTable 15176
Operating Indicators by Function/ProgramTable 16178
Capital Asset Statistics by Funciton/ProgramTable 17180
I. INTRODUCTORY SECTION
CITY OF
FRIDLEY
City of Fridley, 6431 University Avenue NE, Fridley, MN 55432
Finance Department • 763-571-3450 • Fax 763-571-1287 • www.FridleyMN.gov
May 16, 2014
To the Citizens of the City of Fridley,
Mayor, Council Members, and City Manager
The Comprehensive Annual Financial Report of the City of Fridley, Minnesota, for the
fiscal year ended December 31, 2013, is submitted herewith:
Responsibility for both the accuracy of the presented data and the completeness and
fairness of the presentation, including all disclosures, rests with the City. We believe that
the data, as presented, is accurate in all material aspects, that it is presented in a manner
designed to fairly set forth the financial position and results of operations of the City as
measured by the financial activity of its various funds, and that all disclosures necessary
to enable the reader to gain the maximum understanding of the City’s financial activity
have been included.
Generally accepted accounting principals require that management provide a narrative
introduction, overview, and analysis to accompany the basic financial statements in the
form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is
designed to complement the MD&A and should be read in conjunction with it. The City
of Fridley’s MD&A can be found immediately following the report of the independent
auditors.
All City funds, departments, commissions and other organizations for which the City of
Fridley is financially accountable are presented within the Comprehensive Annual
Financial Report. The City provides a full range of services to its citizens. These services
include, but are not limited to, police and fire protection; water and sanitary sewer
utilities; the construction and maintenance of streets and infrastructure; recreational
facilities; and general administrative services. The Housing and Redevelopment
Authority (HRA) is included in the reporting entity as a component unit of the City,
because the governing board is appointed by the City Council, and because of the City’s
relationship of financial benefit or burden with the authority.
The organization, form and contents of this report were prepared in accordance with the
standards prescribed by the Governmental Accounting Standards Board (GASB), the
Government Finance Officers Association of the United States and Canada (GFOA), the
American Institute of Certified Public Accountants, the Minnesota Office of the State
Auditor, and the City Charter.
CITY OF FRIDLEY, MINNESOTA
ECONOMIC CONDITION AND OUTLOOK
BACKGROUND AND LOCATION
The City of Fridley is a first ring suburban community with an estimated 2013 population
of 27,785. The City is located 10 minutes north of downtown Minneapolis and 25
minutes northwest of downtown St. Paul. Incorporated in July of 1949, Fridley covers 10
square miles of area and is now home to some of the most important industries in the
Midwest, nation, and the world. An industrial spine around the rail corridor has served
the City well and has provided the city with nearly as many jobs as the number of citizens
who reside in the community. Fridley is home to the largest number of employees in
Anoka County.
LOCAL ECONOMY
The local economy is showing signs of steady improvement over the past year. New
construction and renovation continues to gain traction as activity has steadily increased
over the past few years, unemployment numbers have improved, and property values
appear to have bottomed out and have rebounded with double digit increases over the
past year.
The value of new construction remained relatively stable compared to the prior year. The
construction value for 2013 amounted to approximately $40.7 million. This is about $5.0
million more than 2012. The major projects for 2013 included; a transitional care unit at
Unity hospital valued at $8.6 million, Cummins loading dock addition valued at $2.7
million, Unity professional building remodel valued at $2.0 million, Vision
Woodworking addition valued at $925,000, a new McDonalds valued at $650,000, and
two elementary school additions valued at $1.0 million each. Continued long-term
growth is anticipated as Fridley continues to aggressively pursue redevelopment
opportunities. Unfortunately, the estimated market value for all properties in Fridley
decreased 9.7% over the past year. This decline in valuation is consistent with other
municipalities in the Minneapolis-St. Paul metropolitan area.
MAJOR INITIATIVES
For the Year
2013 continued with its fast pace of city initiated projects along with the partnering with
developers to bring substantial redevelopment projects to fruition. Current projects
include:
CITY OF FRIDLEY, MINNESOTA
ECONOMIC CONDITION AND OUTLOOK (CONTINUED)
1.The Street Program continued the on-going efforts of resurfacing city streets. The
2013 Street Program included streets within the Meadowmore Terrace and Flanery
Park neighborhoods. The final cost of this project was approximately $975,000.
2.The City entered its third year of a ten to twelve year campaign to replace the City’s
approximately 7,500 manual read water meters with automatic meter reading water
meters. Public Works staff is undertaking the change-out in house, which saves
contractual costs and allows the city to more easily budget for new meters on an
annual basis rather than a large one-time purchase. Annual expenditure for the
purchase of new water meters is estimated to cost $125,000 per year with an average
of 600 meters changed out per year.
3.The HRA continues to be very active with redevelopment activity. Two major TIF
districts are set to break ground in 2014 after years of negotiation and planning. The
first district involves the redevelopment of an old Navy munitions site that requires
hazardous remediation along with the demolition of 2 million square feet of obsolete
manufacturing space and replacing it with 1.6 million square feet of commercial
office and warehouse space. The second district involves a property referred to as
Gateway Northeast, which is a main corridor along University Avenue that bisects the
city. The HRA has been buying dilapidated properties along this corridor for several
years and now has a blank slate to begin redevelopment. This 6 acre site is scheduled
for senior and market rate rental housing with a total of 259 units divided into three
phases.
For the Future
The future for the City of Fridley will continue to be filled with change. Legislative
changes and an improving state and local economy have provided for a brighter financial
outlook from the City’s standpoint. The 2013 State Legislative session appears to have
provided some stability for the State’s funding of Local Government Aid (LGA) with
both the simplification of the funding formula and the outward appearance that LGA
funding will be sustained for the immediate future. In addition, the Legislature
eliminated a majority of the state sales tax cities and counties had to pay on the purchase
of goods and certain services. This relief is estimated to save the General fund
approximately $75,000 per year. As always, city leadership is doing its due diligence to
protect itself from last minute legislative changes by preparing and sustaining viable
budgets that help guard against unforeseen circumstances.
CITY OF FRIDLEY, MINNESOTA
ECONOMIC CONDITION AND OUTLOOK (CONTINUED)
The City also undertook an in-depth review of its Water, Sewer and Storm Water utility
rates back in 2012. As part of this process, the City projects fund balances and capital
improvements needs for each of the utility systems for the next twenty years, and from
that data projects estimated user rates for each fund for that same time period. One goal
of the review was to determine necessary rate adjustments needed to reduce the City’s
dependence on debt financing for yearly capital outlay. Annual updates are done on this
analysis to better reflect current year assumptions.
Maintaining current service levels is a high priority for the City. Through the past several
years operating budgets have been reduced in order to balance budgets. These reductions
have forced City leadership to become more innovative and subsequently more efficient
to maintain service levels. The City will continue to investigate alternatives that will
allow creative solutions to the delivery of services.
FINANCIAL INFORMATION
INTERNAL CONTROLS
In developing and improving the City’s accounting system, consideration is given to the
adequacy of internal accounting controls.Internal accounting controls are designed to
provide reasonable, but not absolute, assurance regarding the safeguarding of assets
against loss from unauthorized use or disposition and the reliability of financial records
for preparing financial statements and maintaining accountability for assets. The concept
of reasonable assurance recognizes that the cost of a control should not exceed the
benefits likely to be derived and the evaluation of costs and benefits requires estimates
and judgments by management.
All internal control evaluations occur within the above framework. We believe that the
City’s internal accounting controls adequately safeguard assets and provide reasonable
assurance of the proper recording of financial transactions.
BUDGETARY CONTROLS
A complete budgetary system of accounts is maintained for the General and Special
Revenue Funds. Budgetary control is maintained in compliance with the City Charter
requirements. The Charter provides that it is the duty of the City Manager to strictly
enforce the provisions of the budget. The management policy of the City is such that the
existence of a particular item or appropriation in the approved budget does not mean that
it will or must be automatically expended. It is the policy of the City to control budgets
at the expenditure category level.
CITY OF FRIDLEY, MINNESOTA
FINANCIAL INFORMATION (CONTINUED)
Budget adjustments between City divisions are made upon the 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) the expenditure is
necessary, 2) adequate funds have been appropriated, and 3) funds are available.
FUND BALANCE POLICY
The purpose of the fund balance policy is to establish appropriate fund balance levels for
each fund that is primarily supported by property tax revenues or user fees. These
policies will ensure that adequate resources are available to meet cash flow needs for
carrying out the regular operations of the City. The funds addressed in this policy include
the General Fund, Solid Waste Abatement Fund, Springbrook Nature Center Fund and
Enterprise Funds. In 2013, all the funds addressed by this policy, with the exception of
the Sewer Enterprise Fund, met the fund balance guidelines. The Sewer Enterprise Fund,
along with the other utility enterprise funds, have all implemented a multi-year plan to
ensure long-term sustainability. The Sewer Enterprise Fund is expected to meet
minimum fund balance requirements within the next couple years.
INVESTMENT POLICY
The purpose of the investment policy is to develop an overall program for cash
investments, designed and managed with a high degree of professionalism, worthy of the
public trust; to establish that elected and appointed officials and employees are custodians
of a portfolio which shall be subject to public review; to establish cash investment
objectives, delegation of authority, standards of prudence, internal controls, authorized
investments, selection process for investments, and broker representations.
The investment policy outlines the investing philosophy and practices of the City of
Fridley and the Fridley Housing and Redevelopment Authority, and has been developed
to serve as a reference point for the management of City assets. It is the policy of the
City to invest public funds in a manner which will provide for safety, liquidity, and yield
in that order of importance. Investments will conform to all federal, state and local
regulations governing the investment of public funds.
CITY OF FRIDLEY, MINNESOTA
OTHER INFORMATION
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 Office of the State of Minnesota.
The accounting firm of HLB Tautges Redpath, Ltd. was engaged by the City to render an
opinion on the City’s financial statements. The auditor’s report on the basic financial
statements and combining and individual fund statements and schedules is included in the
Financial Section of this report.
AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City
of Fridley for its comprehensive annual financial report for the fiscal year ended
December, 31, 2012. In order to be awarded a Certificate of Achievement, a government
must publish an easily readable and efficiently organized comprehensive annual financial
report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our
current comprehensive annual financial report continues to meet the Certificate of
Achievement Program’s requirements and are submitting it to the GFOA to determine its
eligibility for another certificate.
ACKNOWLEDGMENTS
The preparation of this report on a timely basis could not have been accomplished
without the efficient and dedicated services of all members of the Finance Department,
with special recognition to Carol Meyer, Rebecca Kiernan, Greg Tirevold, Jean Michaels,
and to our auditors HLB Tautges Redpath, Ltd. for their professional guidance. We
would also like to express our appreciation to the Mayor and members of the City
Council for their interest and support in planning and conducting the financial operations
of the City in a responsible and progressive manner.
Respectfully submitted,
Darin Nelson Shelly Peterson
Finance Director Assistant Finance Director
CITY OF FRIDLEY, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
DECEMBER 31, 2013
ELECTED OFFICIALS
Term of Office
Expires December
MayorScott J. Lund2016
Councilmember At LargeRobert L. Barnette2016
Councilmember, Ward IJames T. Saefke2014
Councilmember, Ward IIDolores M. Varichak2014
Councilmember, Ward IIIAnn R. Bolkcom 2014
APPOINTED OFFICIALS
City ManagerWilliam W. Burns
City AttorneyDarcy M. Erickson
Prosecuting AttorneyCarl J. Newquist
City ClerkDebra A. Skogen
Department Heads:
Finance Director/TreasurerDarin R. Nelson
Director of Public Safety and Civil DefenseDonovan W. Abbott
Fire ChiefJohn D. Berg
Director of Public WorksJames P. Kosluchar
Director of Parks and RecreationJack G. Kirk
Director of Community DevelopmentScott J. Hickok
Director of Human ResourcesDeborah K. Dahl
CITY OF
FRIDLEY
CITY ADMINISTRATIVE ORGANIZATIONAL STRUCTURE 2013
City of Fridley
General Fund Authorized Full-Time Positions - 103(A)
(Minimum Of 32 Hours A Week)
Total Authorized Full-Time Positions - 127(A)
(Minimum Of 32 Hours A Week)
rev. 10/26/11
CITY MANAGEMENT (2)
City Manager
Admin Assistant to the City Manager
Non-General Fund
CABLE TV FUND
Cable Administrator
FINANCE (20)POLICE (44)FIRE (8)
Finance Director - TreasurerPublic Safety DirectorFire Chief
AccountantAdministrative AssistantAdministrative Assistant
Assistant Chief
ACCOUNTING (4)FIELD OPERATIONS (28)
(3) Captains
Assistant Finance DirectorCaptain
Payroll Coordinator(5) Sergeants
Accounting Specialist(22) Patrol Officers
RENTAL INSPECTIONS (2)
Acctg-Data Processing Clerk
Rental Inspection Asst.
ASSESSING (2)TECHNICAL SUPPORT (14)
Full-time Firefighter
City AssessorCaptain
AppraiserLieutenant
HUMAN RESOURCES (2)
(3) Detectives
MIS (2)
Pawn Detective
IT ManagerHuman Resources Director
(2) School Resource Officer
PC TechnicianAnoka-Henn DTF SergeantAdministrative Assistant
Special Projects Coordinator
CITY CLERK - RECORDS (2)
Crime Prevention Specialist
City Clerk
Office Supervisor
Licensing & Records Technician(2) Police Technicians
(Also 3 at 32 hrs/week)
Non-General Fund
LIQUOR (5)
Liquor Operations Manager
(4) Lead Liquor Store Clerks
WATER ADMIN (2)
Utility Billing Clerk
Acctg-Data Processing Clerk
HRA/WATER ADMIN (1)
Acctg/Admin Specialist
(A) An "Authorized Position" is defined as one that works at least 32 hours a week and receives a full-time benefit package.
PUBLIC WORKS (35)PARKS &COMMUNITY
RECREATION (8)DEVELOPMENT (9)
Public Works Director
Parks & Recreation DirectorCommunity Development
Admin Assist/Main't Coord
Director
Recreation Office Coordinator
(2) Program SupervisorsOffice Coordinator
ENGINEERING (3)
Sr Citizens Program Supervisor
Assistant Public Works DirectorBUILDING INSPECTION (3)
Chief Building Official
(2) Engineering Technician
Building Inspector
PW MAINTENANCE (19)
Permit Technician
Fleet Services SupervisorPLANNING
Planning Manager
(2) Mechanic
Street Supervisor
(8) Public Service Worker
Parks Supervisor
(6) Public Service Worker
Non-General FundNon-General FundNon-General Fund
WATER (5)SPRINGBROOK NATURESOLID WASTE
Water SupervisorCENTER (3)
Environmental Planner
Nature Center Director
(4) Public Service Worker
SECTION 8 HOUSING
Program Supervisor
Coordinator
SEWER (5)
Program Admin Assist
(32 hrs/week)
Sewer Supervisor
HRA
(4) Public Service Worker
Assistant Executive Director
CITY OF
FRIDLEY
II. FINANCIAL SECTION
CITY OF
FRIDLEY
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Fridley, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
City of Fridley, Minnesota, as of and for the year ended December 31, 2013, and the related
notes to the financial statements, which collectively comprise the City’s basic financial
statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com
Equal Opportunity Employer 100-Percent Employee-Owned
HLB Tautges Redpath is a member of HLB International, a world-wide network of independent accounting firms and business advisors.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Fridley, Minnesota, as
of December 31, 2013, and the respective changes in financial position, and, where applicable,
cash flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Emphasis of Matter – Implementation of GASB 65
As described in Note 18 to the financial statements, in 2013, the City adopted new accounting
guidance, GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. Our
opinion is not modified with respect to this matter.
Report on Summarized Comparative Information
We have previously audited the City of Fridley, Minnesota’s 2012 financial statements, and we
expressed an unmodified audit opinion on the respective financial statements of the
governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information in our report dated June 14, 2013. In our opinion, the summarized
comparative information presented herein as of and for the year ended December 31, 2012 is
consistent, in all material respects, with the audited financial statements from which they were
derived.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and budgetary comparison information and the schedule
of funding progress listed in the table of contents on pages 21-31 and 88-91 be presented to
supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency
with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Fridley, Minnesota’s basic financial statements. The
introductory section, combining and individual fund financial statements, supplementary
financial information, statistical section, and other information section are presented for purposes
of additional analysis and are not a required part of the basic financial statements.
The combining and individual fund financial statements and the supplementary financial
information are the responsibility of management and were derived from and relate directly to
the underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the combining and individual fund financial statements and the
supplementary financial information are fairly stated in all material respects in relation to the
basic financial statements as a whole.
The introductory, statistical, and other information sections have not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we do
not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
May 16, 2014, on our consideration of the City of Fridley, Minnesota’s internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City of Fridley, Minnesota’s internal control
over financial reporting and compliance.
HLB TAUTGES REDPATH, LTD.
May 16, 2014
CITY OF
FRIDLEY
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Fridley, we offer readers of the City of Fridley’s financial
statements this narrative overview and analysis of the financial activities of the City for the
fiscal year ended December 31, 2013. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter
of transmittal, which can be found on pages 3 through 8 of this report.
Financial Highlights
The assets of the City of Fridley exceeded its liabilities at the close of the most recent fiscal
year by $62,771,633 (net position). Of this amount, $32,968,815 (unrestricted net position)
may be used to meet the government’s ongoing obligations to citizens and creditors in
accordance with the City's fund designations and fiscal policies.
During 2013, the City’s total net position decreased by $698,700.
As of the close of the current fiscal year, the City of Fridley’s governmental funds reported
combined ending fund balances of $23,966,291. Of this total amount, $2,273,676, or 10% is
restricted through legal restrictions or third-party agreements.
At the end of the current fiscal year the general fund balance of $8,087,414 included $50,366
in nonspendable and $7,997,036 in unassigned fund balance.
The City’s total debt decreased by $1,639,397 during the current fiscal year, it went from
$15,695,541 to $14,056,114.
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the City of Fridley’s
basic financial statements. The City’s basic financial statements comprise three components:
1) government-wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains other supplementary information in addition
to the basic financial statements themselves.
Government-wide financial statements
. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Fridley’s finances, in a
manner similar to a private-sector business.
The statement of net position presents information on all of the City of Fridley’s assets and
liabilities, with the difference between the two reported as net position. Over time, increases
or decreases in net position may serve as a useful indicator of whether the financial position
of the City of Fridley is improving or deteriorating.
Managements Discussion and Analysis
’
The statement of activities presents information showing how the City’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will
only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused
vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Fridley
that are principally supported by taxes and intergovernmental revenues (governmental
activities) from other functions that are intended to recover all or a significant portion of their
costs through user fees and charges (business-type activities). The governmental activities of
the City of Fridley include general government, public safety, public works, community
development, and recreation and naturalist. The business-type activities of the City of
Fridley include liquor, water, sewer and storm water.
The government-wide financial statements can be found on pages 35 through 37 of this
report.
Fund financial statements
. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The
City of Fridley, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City
of Fridley can be divided into three categories: governmental funds, proprietary funds, and
fiduciary funds.
Governmental funds
. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government’s near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government-wide
financial statement. By doing so, readers may better understand the long-term impact of the
City's near term financial decisions. Both the governmental fund balance sheet and
governmental fund statement of revenues, expenditures, and change in fund balances provide
a reconciliation to facilitate this comparison between governmental funds and governmental
activities.
Managements Discussion and Analysis
’
The City of Fridley maintains four individual major governmental funds. Information is
presented separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances for the general fund, debt
service fund, special assessment construction capital projects fund and capital improvements
fund all of which are considered to be major funds.
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-major governmental funds is provided in the form
of combining statements elsewhere in this report.
The City of Fridley adopts an annual appropriated budget for its general fund, special
revenue funds and capital improvements capital projects fund.
A budgetary comparison statement has been provided for those funds to demonstrate
compliance with this budget.
The basic governmental fund financial statements can be found on pages 38 through 43 of
this report.
Proprietary funds
. The City of Fridley maintains four enterprise funds and three internal
service funds as a part of its proprietary fund type. Enterprise funds are used to report the
same functions presented as business-type activities in the government-wide financial
statements. The City of Fridley uses enterprise funds to account for its liquor, water, sewer,
and storm water operations. The City of Fridley uses internal service funds to account for its
employee benefits, self insurance and information systems. Because these services
predominately benefit governmental rather than business-type functions, they have been
included within governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the water, sewer, storm water and liquor operations, all of which are
considered to be major funds of the City of Fridley. Conversely, the internal service funds
are combined into a single, aggregated presentation in the proprietary fund financial
statements. Individual fund data for the internal service funds is provided in the form of
combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 44 through 49 of this
report.
Fiduciary funds
. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government-wide
financial statements because the resources of those funds are not available to support the City
of Fridley’s own program. The accounting used for fiduciary funds is much like that used for
proprietary funds.
The basic fiduciary fund financial statement can be found on page 50 of this report.
Managements Discussion and Analysis
’
Notes to the financial statements
. The notes provide additional information that is essential
to a full understanding of the data provided in the government–wide and fund financial
statements. The notes to the financial statements can be found on pages 51 through 86 of this
report.
Other information.
The combining statements referred to earlier in connection with the
non-major governmental funds are presented immediately following the required
supplementary information on budgetary comparisons. Combining and individual fund
statements and schedules can be found on pages 98 through 149 of this report.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's
financial position. In the case of the City of Fridley, assets exceeded liabilities by
$62,771,633 at the close of the most recent fiscal year.
The largest portion of the City of Fridley's net position ($26,752,614 or 43 percent) reflects
its investment in capital assets (e.g. land, buildings, machinery and equipment) less any
related debt used to acquire those assets that is still outstanding. The City of Fridley uses
these capital assets to provide services to citizens; consequently, these assets are not available
for future spending. Although the City of Fridley's investment in its capital assets is reported
net of related debt, it should be noted that the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be used to liquidate
these liabilities.
CITY OF FRIDLEY'S NET POSITION
Governmental ActivitiesBusiness-TypeTotals
201220132012201320122013
Current and other assets$31,197,767$30,220,437$10,085,398$9,936,439$41,283,165$40,156,876
Capital assets20,938,80220,522,49719,474,12218,573,24040,412,92439,095,737
Total assets$52,136,569$50,742,934$29,559,520$28,509,679$81,696,089$79,252,613
Long-term liabilities outstanding$7,410,130$6,264,552$6,477,952$5,910,986$13,888,082$12,175,538
Other liabilities3,053,0333,033,9511,284,6401,271,4914,337,6734,305,442
Total liabilities$10,463,163$9,298,503$7,762,592$7,182,477$18,225,755$16,480,980
Net position:
Invested in capital assets, net of related debt$14,139,656$13,842,497$13,560,980$12,910,117$27,700,636$26,752,614
Restricted3,294,9523,050,201 - - 3,294,9523,050,201
Unrestricted24,238,79824,551,7308,235,9488,417,08532,474,74632,968,815
Total net position$41,673,406$41,444,428$21,796,928$21,327,202$63,470,334$62,771,630
Managements Discussion and Analysis
’
A portion of the of the City of Fridley's net position represents resources that are subject to
external restrictions on how they may be used.The remaining balance of $32,968,815 in
unrestricted net position may be used to meet the City's ongoing obligations to citizens and
creditors.
At the end of the current fiscal year, the City of Fridley is able to report positive balances in
all three categories of net position, both for the government as a whole, as well as for its
separate governmental and business-type activities.
Governmental Activities
Governmental activities decreased the City of Fridley's net position by $228,974. Capital
grants and contributions increased by $183,157 due to the increase in street construction
activity. There was an increase in charges for services of $102,686 due to street
reconstruction fees and building permits. Conversely, public works expenditures increased by
$508,060 due to an increase in street construction activity.Investment earnings for 2013
were a negative $216,821. This negative amount is due to year-end market value
adjustments.
City of Fridley's Changes in Net Position
Managements Discussion and Analysis
’
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenses:
Managements Discussion and Analysis
’
Business-Type Activities
Business-type activities decreased net position by $469,726. Charges for utility services
were in-line with expenses for the utilities. There were decreases in both revenues and
expenditures for the liquor fund due to a major remodeling project affecting sales the latter
part of the year:
Managements Discussion and Analysis
’
Financial Analysis of the Government's Funds
Governmental funds
. The focus of the City of Fridley’s governmental funds is to provide
information on near-term inflows, outflows, and balances of spendable resources. Such
information is useful in assessing the City of Fridley’s financing requirements. In particular,
unrestricted fund balance may serve as a useful measure of a government’s net resources
available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City of Fridley's governmental funds reported
combined ending fund balances of $23,966,291.
The General Fund’s fund balance increased by $418,092 in 2013. This was much better than
the $51,176 increase originally budgeted for. The key reason for this increase was due to a
significant reduction in budgeted expenditures for both public works and public safety. 2012
proved to be a very mild year with very few snow plowing events. This saved both personnel
costs for overtime and supply costs for fuel and road salt. Public Safety expenditures saw
savings from personnel vacancies throughout the year.
The Capital Improvements Fund’s assigned fund balance increased by $163,087. This was
due to receiving more Local Government Aid (LGA) than what was originally anticipated.
Prior to 2012, LGA was budgeted in the General Fund. However, LGA has been susceptible
to state legislation that resulted in this becoming an unreliable source of revenue. Rather
than utilizing this revenue for operations within the General Fund, which requires continual
funding, the decision was made to allocate LGA to the Capital Improvements Fund. Now if
the City experiences fluctuations in LGA funding, which we did in 2013, we are more easily
able to adjust the budget for one-time purchases rather than continuous operational funding.
The Capital Equipment Fund was added as a governmental fund in 2012. In 2013, this fund
ended the year with a committed fund balance of $102,365. This capital projects fund was
added to better account for capital equipment purchases along with the proceeds from capital
equipment certificates. In the past, capital equipment was purchased out of the General Fund
and would tend to cause large peaks and valleys in regards to total expenditures. With the
capital equipment purchases reported in a separate fund, the General Fund expenditures are
more constant from year to year.
Proprietary funds
. The City of Fridley’s proprietary funds provide the same type of
information found in the government-wide financial statements, but in more detail.
The unrestricted net position in the respective proprietary funds are liquor $409,246, water
$3,970,514 sewer $2,571,975 and storm water $1,465,350. The storm water fund had an
increase in net position of $12,374. The liquor, water and sewer funds had decreases of
$12,085, $57,478 and $412,537 respectively. The sewer variance is primarily due to
conservation efforts by a large industrial customer.
Managements Discussion and Analysis
’
Budgetary Highlights
General Fund
The original revenue and expenditure budgets were amended to account for $178,937 in
additional grants and donations received during the year.
Operating expenditures in total were less than the final budgetary estimates by $507,799.
Significant variances include unspent emergency funds of $120,000 and Public Works, Parks
and Police departments expended $262,306 less than anticipated primarily due to vacancies
and retirements.
Investment earnings for all funds fell below anticipated budget amounts. In fact, due to year-
end market value adjustments, net investment earnings were negative for all funds. At the
end of each year, the City is required by GASB Statement 31 to adjust investments from
book value to market value, even if the investments are intended to be held to maturity,
which the City’s investment policy strongly suggests. After years of declining interest rates,
this fall, the investment market started to see increasing rates. Since the City has previously
purchased investments on its books with interest rates below the current market rate, the
market value of these investments declined to a value below the current book value.
The recorded year-end investment loss is only a book loss since the City tends to hold
investments to maturity. If the investment is held to maturity, interest earning payments
continue to be disbursed to the City and as investments mature, the City will continue to
receive its full principal investment return. In essence, the book loss will be recovered as
investments mature.
Since the financial statements are just a snapshot in time, specifically December 31, 2013,
the fair market value investment loss of approximately $525,000 decreased to $218,000 by
January 31. This demonstrates the volatility of the investment market and all the more
reason why the City tends to hold investments to maturity and invest in secure investments.
Capital Asset and Debt Administration
Capital assets
. The City of Fridley’s, investment in capital assets for its governmental and
business type activities as of December 31, 2013, amounts to $39,095,737 (net of
accumulated depreciation). This investment in capital assets includes land, buildings and
structures, improvements other than buildings, machinery and equipment, infrastructure and
construction in progress.
Managements Discussion and Analysis
’
City of Fridley’s Capital Assets
(Net of Depreciation
)
Governmental ActivitiesBusiness-Type ActivitiesTotals
201220132012201320122013
Land$2,841,516$2,841,516$306,477$306,477$3,147,993$3,147,993
Buildings and structures1,463,784 1,471,8051,387,6632,935,5892,623,022
1,235,359
Improvements other than buildings1,785,957 6,786,8226,476,7168,572,7798,241,852
1,765,136
Machinery and equipment2,075,412 440,226402,6632,515,6383,174,862
2,772,199
Infrastructure12,772,133 10,462,3979,965,88323,234,53021,867,876
11,901,993
Construction in progress-6,294 6,39533,8386,39540,132
Total Capital Assets$20,938,802$20,522,497$19,474,122$18,573,240$40,412,924$39,095,737
Additional information on the City of Fridley’s capital assets can be found in Note 5.
Long-term debt
. At the end of the current fiscal year, the City of Fridley had total bonded
debt outstanding of $13,095,000, a decrease of $1,635,000 from 2012. $4,955,000 of this is
for general obligation improvement debt which is supported by special assessments and a
property tax levy, an additional $1,725,000 is for general obligation equipment certificate
debt which financed the City’s capital equipment purchases, and $6,415,000 is general
obligation utility revenue bonds which financed utility improvements.
In addition, there is long-term debt in the amount of $962,960 for compensated absences.
Additional information on the City of Fridley’s long-term debt can be found in Note 6.
City of Fridley’s Outstanding Debt
General Obligation Improvement Bonds, General Obligation Tax Increment Bonds, General
Obligation Equipment Certificates, General Obligation Revenue Bonds, and Compensated
Absences (excluding bond discounts) are as follows:
Governmental ActivitiesBusiness-Type ActivitiesTotals
201220132012201320122013
General Obligation Improvement Bonds$5,880,000$4,955,000$0$0$5,880,000$4,955,000
General Obligation Revenue Bonds - - 7,070,000 6,415,000 7,070,000 6,415,000
General Obligation Equipment Certificates1,780,0001,725,000 - - 1,780,000 1,725,000
Compensated Absences 967,751 962,960 - - 967,751 962,960
Total$8,627,751$7,642,960$7,070,000$6,415,000$15,697,751$14,057,960
The City of Fridley has an Aa1 rating from Moody's Investors Service.
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of
total Estimated Market Value. The current debt limitation for the City of Fridley is
$60,000,015. Only $1,725,000 of the City's outstanding debt is counted within the statutory
limitation because all other debt is either wholly or partially repaid by revenues other than
general property tax levies.
Managements Discussion and Analysis
’
Requests for information.
This financial report is designed to provide a general overview
of the City of Fridley’s finances for all those with an interest in the government’s finances.
Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to the Finance Director, 6431 University Avenue
NE, Fridley, Minnesota 55432.
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BASIC FINANCIAL STATEMENTS
CITY OF
FRIDLEY
Exhibit A-1
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2013
With comparative totals for December 31, 2012
Component Unit
Primary GovernmentHousing & Redevelopment
GovernmentalBusiness-TypeTotalsAuthority
ActivitiesActivities2013201220132012
Assets:
Cash and investment$26,966,82$5,852,707$32,819,532$33,947,623$9,896,629$10,036,934
s5
Restricted cash and investment -750,031750,0311,154,649 - -
s
Receivables:
Accounts181,6132,447,6752,629,2882,625,37250,54372,020
Taxes350,475 - 350,475312,07316,95319,401
Special assessments2,113,76715,6932,129,4602,027,284 - -
Mortgage - - - - 899,9011,051,661
Interest129,731 - 129,731171,65758,63371,390
Due from component unit125,431 - 125,43162,255 - -
Due from other governments302,2295,050307,279109,568 - -
Prepaid items - - - 298,0097503,914
Inventories - at cost50,366865,283915,649574,675 - -
Land held for resale - - - - 3,547,9253,378,555
Capital assets (net of accumulated depreciation):
Land2,841,516306,4773,147,9933,147,9932,023,5112,023,511
Buildings and structures1,235,3591,387,6632,623,0222,935,589 - -
Improvements other than buildings1,765,1366,476,7168,241,8528,572,779 - -
Machinery and equipment2,772,199402,6633,174,8622,515,638 - -
Infrastructure11,901,9939,965,88321,867,87623,234,530 - -
Construction in progress6,29433,83840,1326,395 - -
Total assets50,742,93428,509,67979,252,61381,696,08916,494,84516,657,386
Liabilities:
Due to primary government - - - - 125,43162,255
Accounts payable253,298407,443660,741573,149373,833375,985
Deposits payable 1,200 -1,2002,711 - -
Contracts payable31,330 -31,330315,028 - -
Due to other governments29,599131,457161,056115,610 - -
Salaries payable639,10865,316704,424604,996 - -
Accrued interest payable86,47297,275183,747200,278 - -
Compensated absences payable:
Due within one year776,529 - 776,529763,779 - -
Due in more than one year186,431 - 186,431203,972 - -
Other post employment benefits payable:
Due in more than one year548,12167,832615,953591,319 - -
Unearned revenue66,415 -66,415127,122 - -
Bonds payable:
Due within one year1,150,000570,0001,720,0001,635,000 - -
Due in more than one year5,530,0005,843,15411,373,15413,092,791 - -
Total liabilities9,298,5037,182,47716,480,98018,225,755499,264438,240
Net position:
Net investment in capital assets13,842,49712,910,11726,752,61427,700,6362,023,5112,023,511
Restricted for:
Debt service2,827,982 - 2,827,9823,067,040 - -
Tax increment purposes - - - - 1,264,9312,042,108
Police forfeitures102,570102,570127,928 - -
Cable television equipment72,640 -72,64072,640 - -
Donations47,012 -47,01227,344 - -
Unrestricted24,551,7308,417,08532,968,81532,474,74612,707,13912,153,527
Total net position$41,444,431$21,327,202$62,771,633$63,470,334$15,995,581$16,219,146
The accompanying notes are an integral part of these financial statements.
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2013
With comparative totals for the year ended December 31, 2012
Program Revenues
Operating
Charges ForGrants and
ExpensesServicesContributions
Functions/Programs
Primary government:
Governmental activities:
General government$3,434,479$2,025,108$67,302
Public safety7,101,331864,435495,254
Public works5,928,33199,289385,207
Community development935,716582,28083,418
Parks and recreation1,456,841326,06764,543
Interest on long-term debt218,610 - -
Total governmental activities19,075,3083,897,1791,095,724
Business-type activities:
Liquor4,148,4474,308,79150,000
Water2,815,5882,788,146 -
Sewer4,974,5254,572,798 -
Storm water587,036613,818 -
Total business-type activities12,525,59612,283,55350,000
Total primary government$31,600,904$16,180,732$1,145,724
Component unit:
Housing and Redevelopment Authority$1,820,723$53,706$ -
Total component unit$1,820,723$53,706$0
General revenues:
Property taxes
Tax increment collections
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Net change in the fair market value of investments
Gain on sale of property
Other
Transfers
Total general revenues
and transfers
Change in net position
Net position - January 1
Net position - December 31
The accompanying notes are an integral part of these financial statements.
Exhibit A-2
Net (Expense) Revenue and Changes in Net PositionComponent Unit
Primary GovernmentHousing & Redevelopment
Capital
TotalsAuthority
Grants andGovernmentalBusiness-Type
ContributionsActivitiesActivities2013201220132012
$ - ($1,342,069)$ - ($1,342,069)($1,108,844)$ - $ -
- (5,741,642) - (5,741,642)(5,631,950) - -
1,747,303(3,696,532) - (3,696,532)(3,480,442) - -
- (270,018) - (270,018)(248,353) - -
- (1,066,231) - (1,066,231)(952,678) - -
- (218,610) - (218,610)(232,318) - -
1,747,303(12,335,102)0(12,335,102)(11,654,585)00
- - 210,344210,344350,614 - -
- - (27,442)(27,442)125,925 - -
- - (401,727)(401,727)(104,180) - -
- - 26,78226,782(31,216) - -
00(192,043)(192,043)341,14300
$1,747,303(12,335,102)(192,043)(12,527,145)(11,313,442)$0$0
$ -($1,767,017)($1,460,477)
$0(1,767,017)(1,460,477)
11,003,455 - 11,003,45510,654,542373,063422,275
- - - - 995,8461,482,662
1,033,814 - 1,033,8141,030,123 - -
245,37056,572301,942343,64246,56492,353
(462,191)(108,918)(571,109)(8,865)(51,864)13,536
35,680 - 35,68066,27843,914144,323
- 24,66324,663 - 135,929200,715
250,000(250,000) - - - -
12,106,128(277,683)11,828,44512,085,7201,543,4522,355,864
(228,974)(469,726)(698,700)772,278(223,565)895,387
41,673,40521,796,92863,470,33362,698,05616,219,14615,323,759
$41,444,431$21,327,202$62,771,633$63,470,334$15,995,581$16,219,146
The accompanying notes are an integral part of these financial statements.
CITY OF FRIDLEY, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2013
Debt Service
General
Assets
Cash and investments$8,160,447$7,747,298
Receivables:
Accounts76,092 -
Taxes313,90626,281
Special assessments38,2131,410,821
Interest129,731 -
Due from other funds97,712 -
Due from component unit123,004 -
Due from other governments36,753 -
Inventories, at cost50,366 -
Total assets$9,026,224$9,184,400
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable$177,365$ -
Deposits payable1,200 -
Contracts payable - -
Due to other governments24,497 -
Due to other funds - -
Salaries payable514,393 -
Unearned revenue - -
Total liabilities717,4550
Deferred inflows of resources:
Unavailable revenue221,3551,417,671
Fund balance:
Nonspendable50,366 -
Restricted40,0122,051,454
Committed - -
Assigned - 5,715,275
Unassigned7,997,036 -
Total fund balance8,087,4147,766,729
Total liabilities, deferred inflows of resources, and fund balanc$9,026,224$9,184,400
The accompanying notes are an integral part of these financial statements.
Exhibit A-3
Special Assessment
Construction Capital Other Governmental Intra-Activity
ProjectsCapital ImprovementsFundsEliminations
Totals Governmental Funds
20132012
$396,373$5,911,740$1,731,268$ - $23,947,126$25,217,941
- 1,35095,349 - 172,791183,578
- 23510,053 - 350,475312,073
113,888550,845 - - 2,113,7672,001,917
- - - - 129,731171,657
- - - (97,712) - -
- - - - 123,00462,186
217,917 - 47,559 - 302,229103,160
- - - - 50,36666,152
$728,178$6,464,170$1,884,229($97,712)$27,189,489$28,118,664
$5,140$6,080$57,232$ -$245,817$234,073
- - - -1,2002,711
26,2975,033 - -31,330258,503
3,783 -320 -28,60038,013
- -97,712(97,712) - -
- -26,724 -541,117455,689
- -66,415 -66,415127,122
35,22011,113248,403(97,712)914,4791,116,111
113,888549,4976,308 -2,308,7192,225,462
- - - -50,36666,152
- -182,210 -2,273,6763,114,112
579,070 -1,545,874 -2,124,9442,328,583
-5,903,560 - -11,618,83511,783,596
- -(98,566) -7,898,4707,484,648
579,0705,903,5601,629,518023,966,29124,777,091
$728,178$6,464,170$1,884,229($97,712)$27,189,489$28,118,664
Fund balance reported above$23,966,291$24,777,091
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds.20,246,00220,587,570
Other long-term assets are not available to pay for current-period expenditures and,
therefore, are reported as unavailable revenue in the funds.2,308,7192,225,462
Long-term liabilities, including bonds payable, are not due and payable in the
current period and, therefore, are not reported in the funds.(7,314,593)(8,280,896)
Internal service funds are used by management to charge the cost of certain activities to individual
funds. The assets and liabilities are included in the governmental statement of net position.2,238,0122,364,179
$41,444,431$41,673,406
Net position of governmental activities
The accompanying notes are an integral part of these financial statements.
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2013
With comparative totals for the year ended December 31, 2012
Debt Service
General
Revenues:
Taxes$9,787,289$919,305
Special assessments30,765376,026
Licenses and permits858,310 -
Intergovernmental revenue909,806 -
Charges for services2,079,418 -
Fines and forfeits180,815 -
Investment income:
Interest and dividends82,06666,860
Net change in the fair value of investments(115,992)(140,188)
Miscellaneous:
Other263,058 -
Total revenues14,075,5351,222,003
Expenditures:
Current:
General government2,546,218 -
Public safety6,656,251 -
Public works3,266,653 -
Community development817,895 -
Parks and recreation847,747 -
Debt service - 1,207,326
Capital outlay18,627 -
Total expenditures14,153,3911,207,326
Excess (deficiency) of revenues
over (under) expenditures(77,856)14,677
Other financing sources (uses):
Bonds issued - -
Proceeds from sale of capital assets - -
Transfers in641,000 -
Transfers out(145,052)(350,000)
Total other financing sources (uses)495,948(350,000)
Net change in fund balance418,092(335,323)
Fund balance - January 17,669,3228,102,052
Fund balance - December 31$8,087,414$7,766,729
The accompanying notes are an integral part of these financial statements.
Exhibit A-4
Special
AssessmentOther
ConstructionCapitalGovernmentalIntra-Activity
Capital ProjectsImprovementsFundsEliminations
Totals Governmental Funds
20132012
$ - ($443)$318,634$ - $11,024,785$10,732,129
9,517417,812 - - 834,120763,920
- - 265,325 - 1,123,6351,104,504
217,9171,041,785474,220 - 2,643,7282,649,207
83,604 - 382,886 - 2,545,9082,353,888
- - 37,379 - 218,194255,622
72750,16920,124 - 219,946240,928
(1,615)(111,941)(35,683) - (405,419)(4,702)
- 6,06726,284 - 295,409322,354
310,1501,403,4491,489,169018,500,30618,417,850
13,85082,679636,910 - 3,279,6573,499,197
- 75,03863,235 - 6,794,5246,426,775
262,3061,980 - - 3,530,9393,047,300
- - - - 817,895772,070
- 45,572411,839 - 1,305,1581,252,089
- - - - 1,207,3261,219,334
1,096,144235,0931,186,422 - 2,536,2861,639,773
1,372,300440,3622,298,406019,471,78517,856,538
(1,062,150)963,087(809,237)0(971,479)561,312
- - - - - 1,280,000
- - 35,679 - 35,67963,445
800,000 - 20,052(1,211,052)250,000350,000
(41,000)(800,000) - 1,211,052(125,000) -
759,000(800,000)55,7310160,6791,693,445
(303,150)163,087(753,506)0(810,800)2,254,757
882,2205,740,4732,383,024 - 24,777,09122,522,334
$579,070$5,903,560$1,629,518$0$23,966,291$24,777,091
The accompanying notes are an integral part of these financial statements.
CITY OF
FRIDLEY
Exhibit A-5
CITY OF FRIDLEY, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2013
With comparative amounts for the year ended December 31, 2012
20132012
Amounts reported for governmental activities in the
statement of activities (Exhibit A-2) are different because:
Net changes in fund balances - total governmental funds (Exhibit A-4)($810,800)$2,254,757
Governmental funds report capital outlays as expenditures. However,
in the statement of activities the cost of those assets is allocated
over their estimated useful lives and reported as depreciation
expense. This is the amount by which capital outlays exceeded
depreciation in the current period.(341,567)(996,298)
Revenues in the statement of activities that do not provide current
financial resources are not reported as revenues in the funds.83,257(117,548)
The issuance of long-term debt (e.g., bonds, leases) provides current
resources to governmental funds, while the repayment of the
principal of financial long-term debt consumes the current
financial resources of governmental funds. Neither transaction,
however, has any effect on net position. This amount is the net
effect of these differences in the treatment of long-term debt and
related items.980,000(340,000)
Internal service funds are used by management to charge the cost of
certain activities to individual funds. This amount is net revenue
attributable to governmental activities.(126,167)(81,971)
Other post employment benefits in the statement of activities does not
require the use of current financial resources and, therefore, is not
reported as expenditures in governmental funds.(21,963)(26,007)
Accrued interest reported in the statement of activities does not require
the use of current financial resources and, therefore, is not
reported as expenditures in governmental funds.8,26612,985
Change in net position of governmental activities (Exhibit A-2)($228,974)$705,918
The accompanying notes are an integral part of these financial statements.
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2013
With comparative totals for December 31, 2012
Business-Type Activities - Enterprise Funds
Assets:LiquorWater
Current assets:
Cash and investments$191,844$2,821,762
Restricted cash and investments - 589,830
Accounts receivable50,0001,068,464
Special assessments receivable - 2,605
Due from other governments - -
Prepaid items - -
Inventories - at cost578,850286,433
Total current assets820,694 4,769,094
Noncurrent assets:
Capital assets:
Land151,946154,531
Buildings and structures130,2113,124,015
Improvements other than buildings774,7908,934,668
Machinery and equipment186,7171,635,574
Infrastructure - 9,809,768
Construction in process - -
Total capital assets1,243,664 23,658,556
Less: Allowance for depreciation(714,565)(13,593,657)
Net capital assets529,09910,064,899
Total noncurrent assets529,09910,064,899
Total assets1,349,79314,833,993
Liabilities:
Current liabilities:
Accounts payable328,36661,332
Accrued interest payable - 86,488
Contracts payable - -
Due to other governments44,7927,093
Salaries payable19,79425,334
Payroll deductions payable - -
Compensated absences payable - -
Bonds payable - current - 520,000
Total current liabilities392,952 700,247
Noncurrent liabilities:
Other post employment benefits18,49628,503
Compensated absences - noncurrent - -
Bonds payable - noncurrent - 5,068,154
Total noncurrent liabilities18,496 5,096,657
Total liabilities411,4485,796,904
Net position:
Net investment in capital assets529,0995,066,575
Unrestricted409,2463,970,514
Total net position$938,345$9,037,089
The accompanying notes are an integral part of these financial statements.
Exhibit A-6
Governmental
Activities -
Internal Service
Funds
Business-Type Activities - Enterprise FundsTotals
SewerStorm Water20132012
$1,374,090$1,465,011$5,852,707$5,650,648$3,019,699
160,201 - 750,0311,154,649 -
1,172,709156,5022,447,6752,441,7948,822
- 13,08815,69325,3672,427
4,0501,0005,0506,408 -
- - - 298,009 -
- - 865,283508,523 -
2,711,050 1,635,601 9,936,439 10,085,398 3,030,948
- - 306,477306,477 -
8,770 - 3,262,9963,262,996 -
2,906,3542,066,53414,682,34614,537,719 -
1,024,822172,2153,019,3282,942,1031,471,090
7,030,6907,227,38124,067,83924,000,200 -
- 33,83833,8386,395 -
10,970,636 9,499,968 45,372,824 45,055,890 1,471,090
(7,041,792)(5,449,570)(26,799,584)(25,581,768)(1,194,594)
3,928,8444,050,39818,573,24019,474,122276,496
3,928,8444,050,39818,573,24019,474,122276,496
6,639,8945,685,99928,509,67929,559,5203,307,444
12,3365,409407,443335,8867,482
6,1464,64197,275105,540 -
- - - 56,525 -
79,572 - 131,45777,597999
20,188 - 65,31654,092 -
- - - - 97,991
- - - - 776,529
30,00020,000570,000655,000 -
148,242 30,050 1,271,491 1,284,640 883,001
20,833 - 67,83265,161 -
- - - - 186,431
440,000335,0005,843,1546,412,791 -
460,833 335,000 5,910,986 6,477,952 186,431
609,075365,0507,182,4777,762,5921,069,432
3,458,8443,855,59912,910,11713,560,980276,496
2,571,9751,465,3508,417,0858,235,9481,961,516
$6,030,819$5,320,949$21,327,202$21,796,928$2,238,012
The accompanying notes are an integral part of these financial statements.
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2013
With comparative totals for the year ended December 31, 201
2
Business-Type Activities - Enterprise Funds
LiquorWater
Sales$4,308,791$ -
Cost of sales(3,222,209) -
Gross profit1,086,5820
Operating revenues:
Customer billings - 2,777,653
Charges for services - -
Other revenues - 10,493
Total operating revenues0 2,788,146
Total gross profit and operating revenues1,086,582 2,788,146
Operating expenses:
Personal services511,616833,781
Supplies and other charges:
Disposal charges - -
Other380,3941,023,800
Depreciation34,228748,597
Total operating expenses926,238 2,606,178
Operating income (loss)160,344 181,968
Nonoperating revenues (expenses):
Intergovernmental revenue - -
Investment income:
Interest and dividends3,69429,557
Net change in the fair value of investments(786)(59,593)
Insurance reimbursement24,663 -
Interest expense - (209,410)
Other50,000 -
Gain (loss) on disposal of capital assets - -
Total nonoperating revenues (expenses)77,571 (239,446)
Income (loss) before transfers237,915 (57,478)
Transfers:
Transfers in - -
Transfers out(250,000) -
Total transfers(250,000) -
Change in net position(12,085)(57,478)
Net position - January 1 950,4309,094,567
Net position - December 31$938,345$9,037,089
The accompanying notes are an integral part of these financial statements.
Exhibit A-7
Governmental
Activities -
Business-Type Activities - Enterprise Funds
Internal Service
Funds
SewerStorm WaterTotals
20132012
$ - $ - $4,308,791$4,705,523$ -
- - (3,222,209)(3,497,168) -
001,086,5821,208,3550
4,572,798611,2877,961,7387,864,406 -
- - - 2,212213,335
- - 10,49310,242 -
4,572,798 611,287 7,972,231 7,876,860 213,335
4,572,798 611,287 9,058,813 9,085,215 213,335
724,657245,2002,315,2542,269,15567,207
3,595,271 - 3,595,2713,374,867 -
321,22895,9151,821,3371,525,826227,482
318,515234,7111,336,0511,336,371147,354
4,959,671 575,826 9,067,913 8,506,219 442,043
(386,873)35,461 (9,100)578,996 (228,708)
- 1,0001,000 - -
11,12511,19655,57269,70025,424
(21,935)(26,604)(108,918)(4,163)(56,772)
- - 24,6637008,889
(14,854)(11,210)(235,474)(255,055) -
- 2,53152,53116,502 -
- - - 9,680 -
(25,664)(23,087)(210,626)(162,636)(22,459)
(412,537)12,374 (219,726)416,360 (251,167)
- - - - 250,000
- - (250,000)(350,000)(125,000)
- - (250,000)(350,000)125,000
(412,537)12,374 (469,726)66,360 (126,167)
6,443,3565,308,57521,796,92821,730,5682,364,179
$6,030,819$5,320,949$21,327,202$21,796,928$2,238,012
The accompanying notes are an integral part of these financial statements.
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2013
With comparative totals for the year ended December 31, 2012
Business-Type Activities - Enterprise Funds
LiquorWater
Cash flows from operating activities:
Receipts from customers and users$4,258,791$2,751,403
Receipts from interfund services provided - -
Payment to suppliers(3,674,441)(1,289,886)
Payment to employees(508,372)(828,416)
Operating contribution50,000 -
Net cash flows from operating activities125,978633,101
Cash flows from noncapital financing activities:
Operating grants - -
Transfers in - -
Transfers out(250,000) -
Net cash flows from noncapital financing activities(250,000)0
Cash flows from capital and related
financing activities:
Acquisition of capital assets(213,288)(5,525)
Principal received on special assessments - -
Insurance reimbursement24,663 -
Principal paid on revenue bonds -(569,637)
Interest and paying agent fees on revenue bonds -(216,790)
Proceeds from sale of capital assets - -
Net cash flows from capital
and related financing activities(188,625)(791,952)
Cash flows from investing activities:
Investment income2,908(30,036)
Net increase (decrease) in cash and cash equivalents(309,739)(188,887)
Cash and cash equivalents - January 1501,5833,600,479
Cash and cash equivalents - December 31$191,844$3,411,592
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $160,344$181,968
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation34,228748,597
Operating contribution50,000 -
Changes in assets and liabilities:
Decrease (increase) in receivables(50,000)(36,743)
Decrease (increase) in prepaid items - -
Decrease (increase) in inventories(128,784)(227,976)
Increase (decrease) in payables60,190(32,745)
Total adjustments(34,366)451,133
Net cash provided by operating activities$125,978$633,101
The accompanying notes are an integral part of these financial statements.
Exhibit A-8
Governmental
Activities -
Business-Type Activities - Enterprise Funds
Internal Service
Funds
SewerStorm WaterTotals
20132012
$4,664,350$611,629$12,286,173$12,419,851$ -
- - - - 202,155
(3,566,188)(98,161)(8,628,676)(8,525,660)(222,192)
(719,371)(245,200)(2,301,359)(2,266,936)(69,222)
- - 50,000 - -
378,791268,2681,406,1381,627,255(89,259)
- 1,0001,000 - -
- - - - 250,000
- - (250,000)(350,000)(125,000)
01,000(249,000)(350,000)125,000
(140,866)(75,490)(435,169)(1,054,662)(72,617)
- 2,5312,53116,502 -
- - 24,6637008,889
(50,000)(35,000)(654,637)(554,744) -
(15,375)(11,574)(243,739)(262,570) -
- - - 9,680 -
(206,241)(119,533)(1,306,351)(1,845,094)(63,728)
(10,810)(15,408)(53,346)65,537(31,348)
161,740134,327(202,559)(502,302)(59,335)
1,372,5511,330,6846,805,2977,307,5993,079,034
$1,534,291$1,465,011$6,602,738 $6,805,297 $3,019,699
($386,873)$35,461($9,100)$578,996($228,708)
318,515234,7111,336,0511,336,371147,354
- - 50,000 - -
91,5523425,151(162,532)(11,180)
298,009 - 298,009(18,170) -
- - (356,760)31,981 -
57,588(2,246)82,787(139,391)3,275
765,664232,8071,415,238 1,048,259 139,449
$378,791$268,268$1,406,138$1,627,255($89,259)
The accompanying notes are an integral part of these financial statements.
Exhibit A-9
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF FIDUCIARY NET POSITION
December 31, 2013
With comparative amounts for December 31, 2012
20132012
Assets:
Cash and investments$ - $24,631
Receivables:
Accounts3,0992,766
Taxes:
Delinquent - 61
Total assets$3,099$27,458
Liabilities:
Due to other governments$3,099$27,458
The accompanying notes are an integral part of these financial statements.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
1. Summary of Significant Accounting Policies
The City of Fridley, Minnesota was incorporated July 1, 1949, under Chapter 410.03 of the Statutes of the
State of Minnesota providing for a council-manager form of government under the “Home Rule Charter
City” concept. The City provides the following services as authorized by its charter: general
administrative services, public safety (police and fire), public improvements, planning and zoning, and
culture and recreation.
The financial statements of the City of Fridley, Minnesota have been prepared in conformity with
generally accepted accounting principles as applied to governmental units by the Governmental
Accounting Standards Board (GASB). The following is a summary of the significant accounting policies.
A. Financial Reporting Entity
As required by generally accepted accounting principles, the financial statements of the
reporting entity include those of the City of Fridley, Minnesota (the primary government) and its
component units. The component units discussed below are included in the City's reporting
entity because of the significance of their operational or financial relationships with the City.
Component Units
In conformity with generally accepted accounting principles, the financial statements of the
component units have been included in the financial reporting entity as discretely presented
component units.
Discretely Presented Component Unit - The Fridley Housing and Redevelopment Authority
(HRA) is governed by commissioners appointed by the Fridley City Council. The HRA is
responsible for providing housing and redevelopment assistance to the City and its residents.
Funding for the various programs administered by the HRA is provided through the issuance of
tax increment revenue bonds and general obligation tax increment bonds guaranteed by the
City. Separate financial statements are not prepared for the HRA.
B.Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement
of changes in net position) report information on all of the nonfiduciary activities of the primary
government and its component units. For the most part, the effect of interfund activity has been
removed from these statements.Governmental activities, which normally are supported by taxes
and intergovernmental revenues, are reported separately from business-type activities, which rely
to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or business-type activity is offset by program revenues.Direct expenses are those that
are clearly identifiable with a specific function or business-type activity.Program revenues
include 1) charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or business-type activity and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular
function or business-type activity. Taxes and other items not included among program revenues
are reported instead as general revenues.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the government considers all revenues, except reimbursement
grants, to be available if they are collected within 60 days of the end of the current fiscal period.
Reimbursement grants are considered available if they are collected within one year of the end of
the current fiscal period. Expenditures generally are recorded when a liability is incurred, as
under accrual accounting. However, debt service expenditures, as well as expenditures related
to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and
interest associated with the current fiscal period are all considered to be susceptible to accrual
and so have been recognized as revenues of the current fiscal period. Only the portion of special
assessments receivable due within the current fiscal period is considered to be susceptible to
accrual as revenue of the current period. All other revenue items are considered to be
measurable and available only when cash is received by the government.
The government reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
TheDebt Service Fund services debt on the general obligation improvement bonds that were
issued to finance construction of public improvements. Special assessment improvements
are paid for completely or in part by property owners deemed to have benefited from such
improvements.
TheSpecial Assessment Construction Capital Projects Fund is used to account for the
construction of public improvements, such as residential streets, sidewalks, and storm
sewers or for the provision of services that are to be paid primarily by the benefited property
owner.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
The Capital Improvements Fund is used to account for the monies received from property
taxes that are used to finance major improvements and the acquisition of assets that require
a large capital outlay.
The government reports the following major proprietary funds:
TheLiquor Fund accounts for operations of the municipal liquor stores.
TheWater Fund accounts for the water service charges which are used to finance the water
system operating expenses.
TheSewer Fund accounts for the sewer service charges which are used to finance the
sanitary sewer system operating expenses.
TheStorm Water Fund accounts for storm sewer charges which are used to finance the
storm sewer operating expenses.
Additionally, the government reports the following fund types:
Internal Service Funds are used to account for employee fringe benefits, insurance
deductibles and maintenance and upgrading of information systems that are provided on a
cost reimbursement or fee basis to departments or agencies within the City. These funds
are essential for segregating costs for determining the total cost of providing a service and
for assuring that the goods and services provided are properly utilized.
Agency Funds are used to account for monies on behalf of the Six Cities Watershed District
and the North Metro Convention and Tourism Bureau.
As a general rule the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are transactions that would be treated as
revenues, expenditures or expenses if they involved external organizations, such as buying
goods and services or payments in lieu of taxes, are similarly treated when they involve other
funds of the City of Fridley. Elimination of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as
general revenues rather than as program revenues. Likewise, general revenues include all
taxes.
Proprietary funds distinguish operatingrevenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund’s principal ongoing operations. The
principal operating revenues of the liquor, water, sewer and storm water enterprise funds are
charges to customers for sales and services.Operating expenses for enterprise funds include
the cost of sales and services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
When both restricted and unrestricted resources are available for an allowable use, it is the
government’s policy to use restricted resources first, then unrestricted resources as they are
needed.
D. Budgets
The City Charter grants the City Council full authority over the financial affairs of the City. The
City Manager is charged with the responsibility of preparing the estimates of the annual budget
and the enforcement of the provisions of the budget as specified in the City Charter. Upon
adoption of the annual budget resolution by the Council, it becomes the formal appropriation
budget for City operations. All budget adjustments must be approved by the Council. Budgets
for the General, Special Revenue and Capital Improvement Capital Projects Funds are adopted
on a basis consistent with accounting principles generally accepted in the United States of
America. Budgeted expenditure appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for
the expenditure of monies are recorded in order to reserve that portion of the appropriation, is
not employed by the City because it is, at present, not considered necessary to assure effective
budgetary control or to facilitate effective cash management.
E. Legal Compliance Budgets
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Manager submits to the City Council a proposed operating budget for the fiscal
year commencing the following January 1. The operating budget includes expenditures
and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution.
4. The City Council may authorize transfer of budgeted amounts between departments within
any fund.
5. Reported budget amounts are as originally adopted or as amended by Council approved
transfers. The City Charter limits appropriations to the total estimated revenues and fund
balances. If actual revenues exceed the original estimates, appropriations may be
increased by the Council up to the amount of revenue increases.
6. All budget amounts lapse at the end of the year to the extent they have not been expended
or encumbered. Encumbrances are reappropriated into the following year’s budget.
7. Annual budgets are legally adopted for the General Fund and Special Revenue Funds.
Formal budgeting integration is employed as a management control device during the year
for each of these funds. Formal budgetary integration is not employed for Debt Service
Funds because effective budgetary control is achieved through the bond indenture
provisions. Budgetary control for other Capital Projects Funds is accomplished through the
use of project controls.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
8. As required by the City Charter, budgetary control is maintained within department at the
level of three major categories of expenditures: salaries and wages; ordinary expenses;
and capital outlay. This is the level of control at which expenditures may not legally exceed
appropriations.
9. The General Fund budget includes prior year encumbrances which were reappropriated to
the current year. Expenditures for the items encumbered are included in the current year’s
expenditures.
F. Cash and Investments
Cash balances from all funds are combined and invested to the extent available in certificates of
deposit, U.S. government securities and other securities authorized by State Statute. Investment
income is allocated to the respective funds on the basis of applicable cash balance participation
by each fund. Investments are stated at fair value, based upon quoted market prices as of the
balance sheet date. Investment income is accrued at the balance sheet date.
The City provides temporary advances to funds that have insufficient cash balances by means of
an advance from another fund shown as interfund receivables in the advancing fund, and an
interfund payable in the fund with the deficit, until adequate resources are received. These
interfund balances are eliminated on the government-wide financial statements.
For purposes of the statement of cash flows the City considers all highly liquid investments with a
maturity of three months or less when purchased to be cash equivalents. All of the cash and
investments allocated to the proprietary funds have original maturities of 90 days or less.
Therefore the entire balance in the Proprietary Funds is considered cash equivalents.
Restricted cash balances relate to unspent bond proceeds.
Investments are stated at fair value, based upon quoted market prices, except for investments in
2a7-like external investment pools, which are stated at amortized cost. Investment income is
accrued at the balance sheet date.
G. Receivables and Payables
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. Short-term interfund loans are classified as “interfund
receivables/payables.” All short-term interfund receivables and payables at December 31, 2013
are planned to be eliminated in 2013. Any residual balances outstanding between the
governmental activities and business-type activities are reported in the government-wide financial
statements as “internal balances.”
Uncollectible property taxes and special assessments are not material and therefore have not
been reported. Because utility bills are considered liens on property, no estimated uncollectible
amounts are established. Uncollectible amounts are not material for other receivables and have
not been reported.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
H. Property Tax Revenue Recognition
The City Council annually adopts a tax levy and certifies it to the County in December
(levy/assessment date) of each year for collection in the following year. The County is
responsible for billing and collecting all property taxes for itself, the City, the local School District
and other taxing authorities. Such taxes become a lien on January 1 and are recorded as
receivables by the City at that date. Real property taxes are payable (by property owners) on
May 15 and October 15 of each calendar year. Personal property taxes are payable by
taxpayers on February 28 and June 30 of each year. These taxes are collected by the County
and remitted to the City on or before July 7 and December 2 of the same year. Delinquent
collections for November and December are received the following January. The City has no
ability to enforce payment of property taxes by property owners. The County possesses this
authority.
Government-Wide Financial Statements
The City recognizes property tax revenue in the period for which the taxes were levied.
Uncollectible property taxes are not material and have not been reported.
Governmental Fund Financial Statements
The City recognizes property tax revenue when it becomes both measurable and available to
finance expenditures of the current period. In practice, current and delinquent taxes and State
credits received by the City in July, December and January are recognized as revenue for the
current year. Taxes collected by the County by December 31 (remitted to the City the following
January) and taxes and credits not received at year end are classified as delinquent and due
from County taxes receivable. The portion of delinquent taxes not collected by the City in
January is fully offset by deferred inflows of resources because they are not available to finance
current expenditures.
I. Special Assessment Revenue Recognition
Special assessments are levied against the benefited properties for the assessable costs of
special assessment improvement projects in accordance with State Statutes. The City usually
adopts the assessment rolls when the individual projects are complete or substantially complete.
The assessments are collectible over a term of years generally consistent with the term of years
of the related bond issue. Collection of annual installments is handled by the County in the same
manner as property taxes. Property owners are allowed to prepay future installments without
interest or prepayment penalties.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon
that property until full payment is made or the amount is determined to be excessive by the City
Council or court action. If special assessments are allowed to go delinquent, the property is
subject to tax forfeit sale. Proceeds of sales from tax forfeit properties are remitted to the City in
payment of delinquent special assessments. Pursuant to State Statutes, a property shall be
subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal
recreational land in which event the property is subject to such sale after five years.
Government-Wide Financial Statements
The City recognizes special assessment revenue in the period that the assessment roll was
adopted by the City Council. Uncollectible special assessments are not material and have not
been reported.
Governmental Fund Financial Statements
Revenue from special assessments is recognized by the City when it becomes measurable and
available to finance expenditures of the current fiscal period. In practice, current and delinquent
special assessments received by the City are recognized as revenue for the current year.
Special assessments that are collected by the County by December 31 (remitted to the City the
following January) are also recognized as revenue for the current year. All remaining delinquent,
deferred and special deferred assessments receivable in governmental funds are completely
offset by deferred inflows of resources.
J. Inventories
Governmental Funds
Inventories of the general fund are stated at cost, which approximates market, using the first-in,
first out (FIFO) method. The primary government does not maintain material amounts of
inventory within the other governmental funds. Inventories of governmental funds are recorded
as expenditures when consumed rather than when purchased.
Proprietary Funds
Liquor fund inventories are valued on the average cost basis. Other proprietary funds inventory
items are expensed at the time they are sold or used (consumption method).
K. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both government-wide and fund financial statements. Prepaid items
are reported using the consumption method and recorded as expenditures/expenses at the time
of consumption.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
L. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads,
bridges, sidewalks, and similar items), and intangible assets such as easements are reported in
the applicable governmental or business-type activities columns in the government-wide financial
statements. Capital assets are defined by the government as assets with an initial, individual
cost of more than $5,000 (with the exception of computer equipment) (amount not rounded) and
an estimated useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets are recorded at
estimated fair market value at the date of donation.
In the case of the initial capitalization of general infrastructure assets (i.e., those reported by
governmental activities) the government chose to include all such items regardless of their
acquisition date or amount. The City was able to estimate the historical cost for the initial
reporting of these assets through back-trending (i.e., estimating the current replacement cost of
the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost
of the infrastructure to be capitalized and using an appropriate price-level index to deflate the
cost to the acquisition year or estimated acquisition year).
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase of capital assets of business-type activities is
included as part of the capitalized value of the assets constructed. For the year ended December
31, 2013, no interest was capitalized in connection with construction in progress.
Property, plant and equipment of the primary government, and the component units, are
depreciated using the straight line method over the following estimated useful lives:
Assets
Improvements other than building 20 – 25 years
Buildings and structures 20 – 25 years
Machinery and equipment 5 – 10 years
Infrastructure 25 years
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
M. Compensated Absences
All liabilities for compensated absences, both current and long-term, for annual leave, severance
and separation pay are accounted for in the Employee Benefit Fund, an Internal Service Fund.
Each year compensated absence expenditures and expenses are recorded in the Governmental
and Proprietary Funds respectively, equivalent to the full amount accrued by fund employees
during the year. These charges are offset by a corresponding transfer of assets from the home
department funds to the Employee Benefit Fund to fund the liability. This liability represents the
maximum possible dilution of Employee Benefit Fund assets by retirements or extended leaves
by employees. The personnel ordinance limits the annual accumulation of benefits that can be
accumulated from year-to-year.
N. Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type statement of
net assets. Bond premiums and discounts are generally immaterial and are expensed in the year
of bond issuance. Material premiums and discounts are deferred and amortized over the life of
the bonds.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing
sources while discounts on debt issuances are reported as other financing uses.
O. Fund Balance Classifications
In the fund financial statements, governmental funds report fund balance in classifications that
disclose constraints for which amounts in those funds can be spent. These classifications are as
follows:
Nonspendable- consists of amounts that are not in spendable form, such as prepaid items.
Restricted - consists of amounts related to externally imposed constraints established by
creditors, grantors or contributors; or constraints imposed by state statutory provisions.
Committed - consists of internally imposed constraints. These constraints are established by
Resolution of the City Council.
Assigned- consists of internally imposed constraints. These constraints reflect the specific
purpose for which it is the City’s intended use. Pursuant to City Council Resolution, the City
Manager and/or the Finance Director are authorized to establish assignments of fund
balance.
Unassigned - is the residual classification for the general fund and also reflects negative
residual amounts in other funds.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
When both restricted and unrestricted resources are available for use, it is the City’s policy to first
use restricted resources, and then use unrestricted resources as they are needed.
When committed, assigned or unassigned resources are available for use, it is the City’s policy to
use resources in the following order; 1) committed 2) assigned and 3) unassigned.
P. Interfund Transactions
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made
from it that are properly applicable to another fund, are recorded as expenditures/expenses in the
reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Interfund loans are reported as an interfund loan receivable or payable which offsets the
movement of cash between funds. All other interfund transactions are reported as transfers.
Q. Use of Estimates
The preparation of financial statements in accordance with generally accepted accounting
principles (GAAP) requires management to make estimates that affect amounts reported in the
financial statements during the reporting period. Actual results could differ from such estimates.
R. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section
for deferred outflows of resources. This separate financial statement element, deferred outflows
of resources, represents a consumption of net position that applies to a future period(s) and so
willnot be recognized as an outflow of resources (expense/expenditure) until then. The
government has no items that qualify for reporting in this category.
In addition to liabilities, the statement of financial position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element, deferred
inflows of resources, represents an acquisition of net position that applies to a future period(s)
and so will not be recognized as an inflow of resources (revenue) until that time. The
government has one type of item, which arises only under a modified accrual basis of accounting,
that qualifies for reporting in this category.Accordingly, the item, unavailable revenue, is
reported only in the governmental fund balance sheet. The governmental funds report
unavailable revenues from the following sources: property taxes and special assessments.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
S. Reconciliation of Government-Wide and Fund Financial Statements
1. Explanation of certain differences between the governmental fund balance sheet and the
government-wide statement of net position
The governmental fund balance sheet includes reconciliation between fund balance – total
governmental funds and net position – governmental activities as reported in the
government-wide statement of net position. One element of that reconciliation explains that
“long-term liabilities, including bonds payable, are not due and payable in the current period
and therefore are not reported in the funds”. The details of this ($7,314,593) difference are
as follows:
Bonds payable($6,680,000)
Accrued interest payable(86,472)
Other post employment benefits payable(548,121)
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities($7,314,593)
2. Explanation of certain differences between the governmental fund statement of revenues,
expenditures and changes in fund balances and the government-wide statement of activities
The governmental fund statement of revenues, expenditures and changes in fund balances
includes reconciliation between net changes in fund balances – total governmental funds and
changes in net position of governmental activities as reported in the government-wide
statement of activities. One element of that reconciliation explains that “governmental funds
report capital outlays as expenditures. However, in the statement of activities the cost of
those assets is allocated over their estimated useful lives and reported as depreciation
expense”. The details of this ($341,567) difference are as follows:
Capital outlay$2,536,286
Less maintenance projects not capitalized(942,942)
Depreciation expense(1,934,911)
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities($341,567)
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Another element of that reconciliation states that “revenues on the statement of activities that
do not provide current financial resources are not reported as revenues in the funds”. The
details of this $83,257 difference are as follows:
Unavailable revenue - general property taxes:
At December 31, 2012($227,717)
At December 31, 2013206,387
Unavailable revenue - special assessments:
At December 31, 2012(1,997,745)
At December 31, 20132,102,332
Net adjustments to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities$83,257
Another element of that reconciliation states that “the issuance of long-term debt (e.g., bonds,
leases) provides current financial resources to governmental funds, while the repayment of
the principal on long-term debt consumes the current financial resources of governmental
funds”. Neither transaction, however, has any effect on net position. The details of this
$980,000 difference are as follows:
Principal repayments:
G.O. Improvement bonds$980,000
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities$980,000
T. Restricted Assets
Cash balances in the Water and Sewer Enterprise Funds are restricted at December 31, 2013
and 2012, for unspent bond proceeds.
U. Reclassifications
Certain amounts presented in the prior year data have been reclassified in order to be consistent
with the current year’s presentation.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
V. Comparative Totals
The basic financial statements, required supplementary information, combining and individual
fund financial statements and schedules, and supplementary financial information include certain
prior-year summarized comparative information in total but not at the level of detail required for a
presentation in conformity with generally accepted accounting principles. Accordingly, such
information should be read in conjunction with the City’s financial statements for the year ended
December 31, 2012, from which the summarized information was derived.
2. Deposits and Investments
A.Deposits
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks
authorized by the City Council, all of which are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or
collateral. The market value of collateral pledged must equal 110% of the deposits not covered
by insurance or bonds.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the
City Treasurer or in a financial institution other than that furnishing the collateral. Authorized
collateral includes the following:
a) United States government treasury bills, treasury notes, treasury bonds;
b) Issues of United States government agencies and instrumentalities as quoted by a
recognized industry quotation service available to the government entity;
c) General obligation securities of any state or local government with taxing powers which is
rated “A” or better by a national bond rating service, or revenue obligation securities of any
state or local government with taxing powers which is rated “AA” or better by a national bond
rating service;
d) Unrated general obligation securities of a local government with taxing powers may be
pledged as collateral against funds deposited by that same local government entity:
e) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality
accompanied by written evidence that the bank’s public debt is rated “AA” or better by
Moody’s Investors Service, Inc. or Standard & Poor’s Corporation; and
f) Time deposits that are fully insured by any Federal agency.
Custodial Credit Risk – Deposits: Custodial credit risk is the risk that in the event of a bank
failure, the City’s deposits may not be returned to it. State Statutes require that insurance, surety
bonds or collateral protect all City deposits. The market value of collateral pledged must equal
110% of deposits not covered by insurance or bonds. As of December 31, 2013, the bank
balance of the City’s deposits was covered by federal depository insurance or covered by
perfected collateral pledged and held in the City’s name.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
B. Investments
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its
instrumentalities or organizations created by an act of congress, excluding mortgage-backed
securities defined as high risk.
b) Shares of investment companies registered under the Federal Investment Company Act of
1940 and whose only investments are in securities described in (a) above, general obligation
tax-exempt securities, or repurchase or reverse repurchase agreements.
c) Obligations of the State of Minnesota or any of its municipalities as follows:
1) any security which is a general obligation of any state or local government with taxing
powers which is rated “A” or better by a national bond rating service;
2) any security which is a revenue obligation of any state or local government with taxing
powers which is rated “AA” or better by a national bond rating service; and
3) a general obligation of the Minnesota housing finance agency which is a moral obligation
of the State of Minnesota and is rated “A” or better by a national bond rating agency.
d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve
System.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the
highest quality, and maturing in 270 days or less.
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal
Reserve System with capitalization exceeding $10,000,000; a primary reporting dealer in
U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota
securities broker-dealers; or, a bank qualified as a depositor.
g) General obligation temporary bonds of the same governmental entity issued under section
429.091, subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6.
As of December 31, 2013 the City had the following investments and maturities:
Investment Maturities (in Years)
FairLessOver
Investment TypeRatingValueThan 11-56-1010 Years
Federal Home Loan BankAAA$8,309,366$ - $489,935$7,819,431$ -
Federal National Mortgage AssociationAAA2,950,720 - 2,460,975489,745 -
Federal Home Loan Mortgage CorporationAAA2,954,643 - 982,9401,971,703 -
Local government bondsAA9,421,7213,087,6136,133,900200,208 -
Brokered CDsN/R3,099,2561,246,2331,610,250242,773 -
Money marketN/R5,029,0535,029,053 - -
Total$31,764,759$9,362,899$11,678,000$10,723,860$0
Total investments$31,764,759
Deposits1,800,254
Petty cash4,550
Total cash and investments$33,569,563
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Following is a reconciliation to the City’s cash and investment balances as of December 31, 2013:
Cash and investments - primary government:
Governmental and business-type (statement A-1)$32,819,532
Restricted cash business-type (statement A-1)750,031
Fiduciary (statement A-9) -
$33,569,563
As of December 31, 2013 the HRA had the following investments and maturities:
Investment Maturities (in Years)
FairLessOver
Investment TypeRatingValueThan 11-56-1010 Years
United States Treasury BondAAA$151,623$ - $151,623$ - $ -
Federal National Mortgage AssociationAAA1,133,147 - 1,133,147 - -
Federal Home Loan Mortgage CorporationAAA470,337470,337
Aaa - A
Local government bonds4,372,3702,146,0902,226,280 - -
1
Money marketN/R2,620,0722,620,072 - - -
Total$8,747,549$4,766,162$3,981,387$0$0
Total investments$8,747,549
Deposits1,149,080
Total cash and investments$9,896,629
C. Investment Risks
Custodial credit risk – investments – For investments in securities, custodial credit risk is the risk
that in the event of failure of the counterparty to a transaction, the City will not be able to recover
the value of its investment securities that are in the possession of an outside party. Investments
in investment pools and money markets are not evidenced by securities that exist in physical or
book entry form, and therefore are not subject to custodial credit risk disclosures. The City policy
is to limit its exposure by holding investments in securities with a major bank’s corporate trust
department. Investments are delivered to the City’s trust account and then payment is released
to the broker-dealer.
Interest rate risk – Interest rate risk is the risk that changes in interest rates of debt investments
could adversely affect the fair value of an investment. The City’s investment policy requires the
City to diversify its investment portfolio to eliminate the risk of loss resulting from over
concentration of assets in a specific maturity. The policy also states the City’s investment
portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which
might be reasonably anticipated.
Credit Risk– Credit risk is the risk that an issuer or other counterparty to an investment will be
unable to fulfill its obligation to the holder of the investment. State law limits investments to
commercial paper to those rated in the highest quality category by at least two nationally
recognized rating agencies; in any security of the State of Minnesota or any of its municipalities
which is rated “A” or better by a national bond rating service for general obligation and rated “AA”
or better for a revenue obligation; a general obligation of the Minnesota Housing Finance Agency
to those rated “A” or better by a national bond rating agency; mutual funds or money market
funds whose investments are restricted to securities described in MS 118A.04. The City’s
investment policy does not place further restrictions on investment options.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Concentration of credit risk – Concentration of credit risk is the risk of loss that may be attributed
to the magnitude of a government’s investment in a single issuer. The City places no limit on the
amount the City may invest in any one issuer.Investments in a single issuer exceeding 5% of
the City’s overall investment portfolio are in various holdings as follows:
Federal Home Loan Bank26.16%
Federal Home Loan Mortgage Corporation9.30%
Federal National Mortgage Association9.29%
Local government bonds:
El Paso Texas6.41%
Concentration of credit risk – Concentration of credit risk is the risk of loss that may be attributed
to the magnitude of a government’s investment in a single issuer. The HRA places no limit on the
amount the HRA may invest in any one issuer. Investments in a single issuer exceeding 5% of
the HRA’s overall investment portfolio are in various holdings as follows:
Federal Home Loan Bank5.38%
Federal National Mortgage Association12.95%
Local government bonds:
Oregon St-TXB-E5.22%
Baltimore MD11.30%
Kansas City MO7.72%
Greenville SC6.81%
3. Receivables
Significant receivables balances not expected to be collected within one year of December 31, 2013 are
as follows:
Primary Government
Major Funds
Special
AssessmentCapitalNonmajor
GeneralDebt ServiceCapital ProjectsImprovementsFundsTotal
Special assessments receivable$29,914$1,118,713$438,380$90,896$ - $1,677,903
Delinquent property taxes122,300 - 11,632 - 4,068138,000
$152,214$1,118,713$450,012$90,896$4,068$1,815,903
HRA Component Unit
Major Funds
RevolvingGeneral
LoanFundTotal
Mortgage receivable$955,065$ - $955,065
Allowance for uncollectible accounts(55,164) - ($55,164)
Delinquent tax increment - 5,309$5,309
$899,901$5,309$905,210
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
4. Unavailable Revenues
Governmental funds report deferred inflows of resources in connection with receivables that are not
considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year,
the various components of unavailable revenue reported in the governmental funds were as follows:
PropertySpecial
TaxesAssessmentsTotal
Major funds:
General$183,874$37,481$221,355
Debt Service15,9761,401,6951,417,671
Special Assessment Capital Projects - 113,888113,888
Capital Improvements229549,268549,497
Nonmajor6,308 - 6,308
Total unavailable revenue$206,387$2,102,332$2,308,719
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
5. Capital Assets
Capital asset activity for the year ended December 31, 2013 was as follows:
BeginningEnding
Primary Government
BalanceIncreasesDecreasesBalance
Governmental activities:
Capital assets, not being depreciated:
Land$2,841,516$ - $ - $2,841,516
Construction in progress - 6,294 - 6,294
Total capital assets, not being depreciated2,841,5166,29402,847,810
Capital assets, being depreciated:
Buildings and structures7,981,14060,980 - 8,042,120
Machinery and equipment8,695,1761,292,476(501,459)9,486,193
Improvements6,174,900323,590(105,485)6,393,005
Infrastructure33,150,978 - - 33,150,978
Total capital assets, being depreciated56,002,1941,677,046(606,944)57,072,296
Less accumulated depreciation for:
Buildings and structures6,517,357289,405 - 6,806,762
Machinery and equipment6,619,763578,309(484,079)6,713,993
Improvements4,388,943344,411(105,485)4,627,869
Infrastructure20,378,845870,140 - 21,248,985
Total accumulated depreciation37,904,9082,082,265(589,564)39,397,609
Total capital assets being depreciated - net18,097,286(405,219)(17,380)17,674,687
Governmental activities capital assets - net$20,938,802($398,925)($17,380)$20,522,497
BeginningEnding
Primary Government
BalanceIncreasesDecreasesBalance
Business-type activities:
Capital assets, not being depreciated:
Land$306,477$ - $ - $306,477
Construction in progress6,39533,838(6,395)33,838
Total capital assets, not being depreciated312,87233,838(6,395)340,315
Capital assets, being depreciated:
Buildings and structures3,262,996 - - 3,262,996
Improvements other than buildings14,537,719240,487(95,860)14,682,346
Machinery and equipment2,942,10399,600 - 3,041,703
Infrastructure24,000,20067,639 - 24,067,839
Total capital assets, being depreciated44,743,018407,726(95,860)45,054,884
Less accumulated depreciation for:
Buildings and structures1,791,19184,142 - 1,875,333
Improvements other than buildings7,750,897550,593(95,860)8,205,630
Machinery and equipment2,501,875137,163 - 2,639,038
Infrastructure13,537,805564,153 - 14,101,958
Total accumulated depreciation25,581,7681,336,051(95,860)26,821,959
Total capital assets being depreciated - net19,161,250(928,325)018,232,925
Business-type activities capital assets - net$19,474,122($894,487)($6,395)$18,573,240
Component unit:
Capital assets, not being depreciated:
Land$2,023,511$0$0$2,023,511
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government$197,826
Public safety263,410
Public works, including depreciation of general infrastructure assets1,287,497
Park and recreation186,178
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets147,354
Total depreciation expense - governmental activities$2,082,265
Business-type activities:
Liquor$34,228
Water748,597
Sewer318,515
Storm water234,711
Total increases in accumulated depreciation$1,336,051
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
6. Long-Term Debt
The City issues general obligation bonds to provide funds for the acquisition and construction of major
capital facilities. The reporting entity’s long-term debt is segregated between the amounts to be repaid
from governmental activities and amounts to be repaid from business-type activities.
As of December 31, 2013, the governmental long-term bonded debt and loans of the financial reporting
entity consisted of the following:
Governmental Activities:
$1,915,000 General Obligation Improvement Bonds, Series 2008A due in varying annual
installments of $165,000 - $225,000 through February 1, 2019; interest at 2.95% - 4.00%.$1,225,000
$1,910,000 General Obligation Improvement Bonds, Series 2007A due in varying annual
installments of $155,000 - $230,000 through August 1, 2018; interest at 3.50% - 3.85%.1,055,000
$1,215,000 General Obligation Improvement Bonds, Series 2010C due in varying annual
installments of $55,000 - $135,000 through February 1, 2021; interest at 2.00% - 3.00%.935,000
$1,805,000 General Obligation Improvement Bonds of 2005 due in varying annual installments of
$155,000 - $210,000 through February 1, 2016; interest at 2.80% - 3.750%.605,000
$2,505,000 General Obligation Improvement Bonds of 2006 due in varying annual installments
of $205,000 - $305,000 through February 1, 2017; interest at 4.00%.1,135,000
$550,000 General Obligation Equipment Certificates, Series 2010B due in varying annual
installments of $50,000 - $70,000 through February 1, 2020; interest at 2.00% - 3.00%445,000
$1,280,000 General Obligation Equipment Certificates, Series 2012A due in varying annual
installments of $135,000 - $150,000 through February 1, 2022; interest at 1.00% - 1.65%1,280,000
Subtotal governmental activities$6,680,000
Business-Type Activities:
$1,180,000 General Obligation Water Revenue Bonds of 1998, due in varying annual
installments of $90,000 - $130,000 through February 1, 2011.-$
$1,790,000 General Obligation Water Revenue Bonds of 2004 due in varying annual installments
of $50,000 - $230,000 through February 1, 2019; interest at 2.50% - 4.00%.1,230,000
$1,005,000 General Obligation Water and Storm Water Revenue Bonds of 2004 due in varying
annual installments of $160,000 - $235,000 through February 1, 2012; interest at 2.00% - 3.25%. -
$3,725,000 General Obligation Water Revenue Bonds of 2008B due in varying
annual installments of $240,000 - $315,000 through February 1, 2023; interest at 2.95% - 4.50%.2,640,000
$2,810,000 General Obligation Utility Revenue Bonds of 2010A due in varying annual
installments of $160,000 - $265,000 through February 1, 2026; interest at 2.50% - 3.50%2,545,000
Unamortized discount(1,846)
Subtotal business-type activities6,413,154
Total primary government$13,093,154
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Annual debt service requirements to maturity for general obligation bonds and loans are as follows:
Primary Government
Governmental ActivitiesBusiness-Type Activities
Year EndingG.O. ImprovementG.O. Equipment CertificatesRevenue Bonds
December 31,PrincipalInterestPrincipalInterestPrincipalInterest
2014$955,000$165,235$195,000$25,655$570,000$223,459
2015990,000 129,815 200,000 23,080 585,000 203,060
20161,030,000 92,090 200,000 20,330 610,000 181,610
2017855,000 56,360 205,000 17,205 625,000 159,191
2018570,000 29,503 205,000 13,855 655,000 135,623
2019355,000 12,450 210,000 10,371 680,000 110,748
2020135,000 3,975 215,000 6,570 465,000 89,585
202165,000 975 145,0003,526490,000 72,080
2022 - - 150,0001,238505,000 53,688
2023 - - - - 530,000 34,125
2024 - - - - 225,000 20,281
2025 - - - - 235,000 12,513
2026 - - - - 240,000 4,200
Total$4,955,000$490,403$1,725,000$121,830$6,415,000$1,300,161
Long-term liability activity for the year ended December 31, 2013, was as follows:
BeginningEndingDue Within
BalanceAdditionsReductionsBalanceOne Year
Governmental activities:
Bonds payable:
G.O. improvement bonds$5,880,000$ - ($925,000)$4,955,000$955,000
G.O. equipment certificates1,780,000 - (55,000)1,725,000195,000
Total bonds payable7,660,0000(980,000)6,680,0001,150,000
Compensated absences967,750753,425(758,215)962,960186,431
Total government activity
long-term debt$8,627,750$753,425($1,738,215)$7,642,960$1,336,431
Business-type activities:
Bonds payable:
G.O. revenue bonds$7,067,791$ - ($654,637)$6,413,154$570,000
Compensated absences are generally liquidated by the Employee Benefits Fund. All long-term bonded
indebtedness outstanding at December 31, 2013 is backed by the full faith and credit of the City,
including improvement and revenue bond issues. Delinquent assessments receivable at December 31,
2013 totaled $35,512.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Revenues Pledged
Revenue PledgedCurrent Year
Percent ofDebt servicePrincipalPledged
Use oftotalas a % ofTerm ofRemainingand InterestRevenue
Bond IssueProceedsTypedebt servicenet revenuesPledgePrincipalpaidreceived
2012ACapital EquipmentProperty Taxes100%2013-$1,280,000$13,363$ -
2022
2010BCapital EquipmentProperty Taxes100%2011-445,00067,400232,780
2020
2010CStreet ImprovementsProperty Taxes and100%2011-935,000142,45097,994
Special Assessments2021
2008AStreet ImprovementsProperty Taxes and100%2008-1,225,000232,150211,264
Special Assessments2019
2007AStreet ImprovementsProperty Taxes and100%2007-1,055,000227,938207,141
Special Assessments2018
2006AStreet ImprovementsProperty Taxes and100%2007-1,135,000305,500248,928
Special Assessments2017
2005AStreet ImprovementsProperty Taxes and100%2006-605,000215,375212,603
Special Assessments2016
Water, Sewer and
2010A Utility Revenue BondsInfrastructure improvementsStorm Customer100%4.37%2011-2,545,000348,1387,972,231
Net Revenue2026
2008B Water Revenue BondsInfrastructure improvementsWater Customer100%11.71%2008-2,640,000326,4602,788,146
Net Revenue2023
2004 Water Revenue BondsInfrastructure improvementsWater Customer100%8.03%2004-1,230,000223,7792,788,146
Net Revenue2019
7. Defined Benefit Pension Plans-Statewide
A. Plan Description
All full-time and certain part-time employees of the City are covered by defined benefit plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the General Employees Retirement Fund (GERF) and the Public Employees Police
and Fire Fund (PEPFF), which are cost-sharing, multiple-employer retirement plans. These
plans are established and administered in accordance with Minnesota Statutes, Chapters 353
and 356.
GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan
members are covered by Social Security and Basic Plan members are not. All new members
must participate in the Coordinated Plan. All police officers, firefighters and peace officers who
qualify for membership by statute are covered by the PEPFF.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
PERA provides retirement benefits as well as disability benefits to members, and benefits to
survivors upon death of eligible members. Benefits are established by State Statute, and vest
after three years of credited service. The defined retirement benefits are based on a member’s
highest average salary for any five successive years of allowable service, age, and years of
credit at termination of service.
The benefit provisions stated in the previous paragraphs of this section are current provision and
apply to active plan participants. Vested, terminated employees who are entitled to benefits but
are not receiving them yet are bound by the provisions in effect at the time they last terminated
their public service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for GERF and PEPFF.That report may be obtained on the internet at
www.mnpera.org, by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088
or by calling (651)296-7460 or 1-800-652-9026.
B. Funding Policy
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These
statutes are established and amended by the state legislature. The City makes annual
contributions to the pension plans equal to the amount required by state statutes. GERF Basic
Plan members and Coordinated Plan members were required to contribute 9.10% and 6.25%,
respectively, of their annual covered salary in 2013. PEPFF members were required to
contribute 9.6% of their annual covered salary in 2013. The City was required to contribute the
following percentages of annual covered payroll in 2013: 11.78% for Basic Plan members,
7.25% for Coordinated Plan members, and 14.4% for PEPFF members. The City’s contributions
to the General Employees Retirement Fund for the years ending December 31, 2013, 2012 and
2011 were $411,511, $397,492, and $400,177, respectively. The City’s contributions to the
Public Employees Police and Fire Fund for the years ending December 31, 2013, 2012 and 2011
were $503,700, $501,259 and $477,618, respectively. The City’s contributions were equal to the
contractually required contributions for each year as set by state statute.
C. Public Employees Retirement Association (PERA) - Defined Contribution
Plan Description
All council members of the City of Fridley are covered by a defined contribution pension plan
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the Public Employees Defined Contribution Plan (PEDCP) which is a multiple-
employer deferred compensation plan.
Benefit Provisions and Contribution Rates
The PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all
contributions by or on behalf of employees are tax deferred until time of withdrawal.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Plan benefits depend solely on amounts contributed to the plan plus investment income, less
administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions,
including the employee and employer contribution rates for those qualified personnel who elect to
participate. An eligible elected official who decides to participate contributes 5 percent of salary
which is matched by the elected official's employer. For ambulance service personnel, employer
contributions are determined by the employer, and for salaried employees must be a fixed
percentage of salary. Employer contributions for volunteer personnel may be a unit value for
each call or period of alert duty. Employees who are paid for their services may elect to make
member contributions in an amount not to exceed the employer share. Employer and employee
contributions are combined and used to purchase shares in one or more of the seven accounts of
the Minnesota Supplemental Investment Fund.For administering the plan, PERA receives 2
percent of employer contributions and twenty-five hundredths of one percent of the assets in
each member's account.
Total contributions made by the City during fiscal year 2013 were:
Percentage of
AmountCovered PayrollRequired
EmployeesEmployerEmployeesEmployerRates
PEDCP$2,106$2,1065.00%5.00%5.00%
8. Defined Contribution Pension Plan - Fridley Volunteer Firefighters Relief Association
Plan Description
The Fridley Volunteer Firefighters Relief Association (Association), is a single employer public
employee retirement system that acts as a common investment administrator for all of the City’s
firefighters. Pursuant to a 1987 amendment to its by-laws, the pension plan is a defined contribution
plan, prior to 1987 the pension plan was a defined benefit pension plan.
Benefits and contribution requirements are established by Association’s by-laws and can be
amended by the Association’s Board of Trustees with approval from the City of Fridley, Minnesota.
All provisions are within limitations established by Minnesota Statutes.
Type of Benefit
The exclusive pension provided by the Association is a “Defined Contribution Lump Sum Service
Pension,” as defined in Minnesota Statutes §424A.02, Subdivision 4.
Contribution Made
The City collected and remitted $108,637 and $101,103 in State Aid to the Association for 2013 and
2012, respectively. This transaction is recorded as revenue and expenditures in the City’s financial
statements.
During 2013 and as of December 31, 2013, the Association held no securities issued by the City
or other related parties.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
9. Other Post-Employment Benefits
A. Plan Description
In addition to providing the pension benefits described in Note 6, the City provides post-
employment health care benefits (as defined in paragraph B) for retired employees and police
and firefighters disabled in the line of duty, through a single-employer defined benefit plan. The
termPlan refers to the City’s requirement by State Statute to provide retirees with access to
health insurance. The OPEB plan is administered by the City. The authority to provide these
benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a, and 299A.465. The
benefits, benefit levels, employee contributions and employer contributions are governed by the
City and can be amended by the City through its personnel manual and collective bargaining
agreements with employee groups. The Plan is not accounted for as a trust fund, an irrevocable
trust has not been established to account for the Plan. The Plan does not issue a separate
report.
B. Benefits Provided
Retirees
The City is required by State Statute to allow retirees to continue participation in the City’s group
health insurance plan if the individual terminates service with the City through service retirement
or disability retirement. Covered spouses may continue coverage after the retiree’s death. The
surviving spouse of an active employee may continue coverage in the group health insurance
plan after the employee’s death.
All health care coverage is provided through the City’s group health insurance plans. The retiree
is required to pay 100% of their premium cost for the City-sponsored group health insurance plan
in which they participate. The premium is a blended rate determined on the entire active and
retiree population. Since the projected claims costs for retirees exceed the blended premium
paid by retirees, the retirees are receiving an implicit rate subsidy (benefit). The coverage levels
are the same as those afforded to active employees. Upon a retiree reaching age 65 years of
age, Medicare becomes the primary insurer.
The monthly retiree premiums effective January 1, 2013 were:
SingleMarried
Regular and Dental$737$2,129
HRA and Dental6221,797
HSA and Dental6011,736
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
C. Participants
As of the actuarial valuation dated January 1, 2011, participants consisted of:
Retired participants and beneficiaries
currently receiving benefits11
Active employees69
Waiving Coverage62
Total142
Participating employers1
D. Funding Policy
The additional cost of using a blended rate for actives and retirees is currently funded on a pay-
as-you-go basis. The City Council may change the funding policy at any time.
E. Annual OPEB Costs and Net OPEB Obligation
The City’s annual other post employment benefit (OPEB) cost is calculated based on the annual
required contribution (ARC) of the employer, an amount actuarially determined in accordance
with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if
paid on an ongoing basis, is projected to cover normal cost each year and amortize any
unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The net
OPEB obligation as of December 31, 2013, was calculated as follows:
Annual required contribution (ARC)$72,372
Interest on net OPEB obligation23,653
Adjustment to ARC(34,196)
Annual OPEB cost61,829
Contributions made during the year(37,196)
Increase in net OPEB obligation24,633
Net OPEB obligation - beginning of year591,320
Net OPEB obligation - end of year$615,953
For the governmental activities, other post employment benefits are generally liquidated through
the General Fund.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan and
the net OPEB obligation for 2011 to 2013 was as follows:
Percentage of
Fiscal YearAnnual OPEBEmployer Annual OPEB CostNet OPEB
EndedCostContributionsContributedObligation
December 31, 2011$59,654$28,46447.7%$562,074
December 31, 201260,78031,53551.9%591,319
December 31, 201361,82937,19660.2%615,953
F. Funded Status and Funding Progress
The City currently has no assets that have been irrevocably deposited in a trust for future health
benefits; therefore, the actuarial value of assets is zero. The funded status of the Plan was as
follows:
Unfunded
ActuarialActuarialUAAL as a
ActuarialActuarialAccruedAccruedFundedCoveredPercentage of
ValuationValue of AssetsLiability (AAL)*Liability (UAAL)RatioPayrollCovered Payrol
Date(a)(b)(b-a)(a/b)(c) ( (b-a) / c)
anuary 1, 2011$ - $616,348$616,3480.0%$8,186,0317.5%
J
*Using the projected unit credit actuarial cost method.
G. Actuarial Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality and the health care cost trend. Amounts
determined regarding the funded status of the plan and the annual required contributions (ARC)
of the employer are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The schedule of funding progress,
presented as required supplementary information following the notes to financial statements,
presents multi-year trend information that shows whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan members to that point. The actuarial methods and assumptions
used include techniques that are designed to reduce the effect of short-term volatility in actuarial
accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of
the calculations.
In the January 1, 2011 actuarial valuation, the Projected Unit Credit Actuarial cost method was
used. The actuarial assumptions included a 4.0% investment rate of return (net of administrative
expenses) and an initial annual health care cost trend rate of 10% reduced by 0.5% each year to
arrive at an ultimate health care cost trend rate of 5.0%, which includes a 3% inflation
assumption. The actuarial value of assets was $0. The plan’s unfunded actuarial accrued
liability is being amortized using the level percentage of projected payroll method over 30 years
on a closed basis. The remaining amortization period at December 31, 2013, was 27 years.
10. Interfund Receivables, Payables and Transfers
Interfund payables and receivables are representative of lending/borrowing arrangements to
cover deficit cash balances at the end of the fiscal year. Interfund receivables and payables of
the City are as follows:
InterfundInterfund
ReceivablesPayables
Due From/Due To:
Major Funds:
General Fund$97,712$ -
Nonmajor Governmental Funds:
Special Revenue Funds:
Police Activity Fund - 97,712
$97,712$97,712
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Interfund receivables and payables of the HRA component unit at December 31, 2013 are as
follows:
InterfundInterfund
ReceivablesPayables
Due From/Due To:
General Fund$7,005,931$ -
Capital Projects Funds:
Lake Pointe - 325,303
Gateway East - 661,653
Gateway West - 670,109
57th Avenue Redevelopment - 38,760
Housing Replacement - 600,000
Gateway Northeast - 4,388,173
#20 BAE - 33,000
#20 - BAE Hazardous Subs - 284,933
#22 Northstar - 4,000
$7,005,931$7,005,931
The above balances are not expected to be eliminated within one year of December 31, 2013.
Interfund Transfers:
Transfer InTransfer Out
Governmental Funds:
Major Funds:
General Fund (1) (4) (5) (6)$641,000$145,052
Special Assessment Debt Service (1) - 350,000
Capital Improvements (2) - 800,000
Special Assessment Construction Capital Projects (2) (6)800,00041,000
Nonmajor Funds (1)20,052 -
Total governmental funds1,461,0521,336,052
Internal Service Funds:
Employee Benefit (3) - 125,000
Info Systems (3) (5)250,000 -
Proprietary Funds:
Liquor (4) - 250,000
Total$1,711,052$1,711,052
(1) Transfer of $350,000 to finance General Fund and $20,052 to finance nonmajor funds
(2) Transfer City portion of various street repairs
(3) Transfer of expenditures related to laserfiche purchase
(4) Annual transfer to finance General Fund
(5) Transfer of expenditures related to equipment and program costs
(6) Transfer to allocate staff costs
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
During 2012, the HRA Component Unit had a transfer of $262,907 related to the closure of the
Winfield Fund to the Gateway West Fund. Interfund transfers allow the City and HRA to allocate
financial resources to the funds that receive benefit from services provided by another fund.
Most of the interfund transfers fall under that category.
11. Fund Balance
A. CLASSIFICATIONS
At December 31, 2013, a summary of the governmental fund balance classifications are as
follows:
Special
Assessment
DebtConstructionCapital OtherTotalComponent
General FundServiceCapital ProjectsImprovementsGovernmentalCityUnit
Nonspendable:
Inventory$50,366$ - $ - $ - $ - $50,366$ -
Mortgage loan receivable - - - - - 900,651
Total nonspendable50,366000050,366900,651
Restricted for:
Donations40,012 - - - 7,00047,012 -
Unspent bond proceeds - - - - - - -
Debt service - 2,051,454 - - - 2,051,454 -
Tax increment - - - - - 1,264,931
Cable television equipment - - - - 72,64072,640 -
Police forfeitures - - - - 102,570102,570 -
Total restricted40,0122,051,45400182,2102,273,6761,264,931
Committed to:
Cable televitsion programming - - - - 1,311,2141,311,214 -
Recycling programs - - - - 78,58378,583 -
Nature Center activities - - - - 53,71253,712 -
Public improvements - - 579,070 - - 579,070 -
Capital equipment - - - - 102,365102,365 -
Housing loan program - - - - - - 3,027,312
Total committed00579,07001,545,8742,124,9443,027,312
Assigned to: -
Capital improvements - 5,715,275 - 5,903,560 - 11,618,835 -
Total assigned05,715,27505,903,560011,618,8350
Unassigned7,997,036 - - - (98,566)7,898,4705,214,298
Total$8,087,414$7,766,729$579,070$5,903,560$1,629,518$23,966,291$10,407,192
B. MINIMUM UNASSIGNED FUND BALANCE POLICY
The City Council has formally adopted a policy regarding the minimum unassigned fund balance
for the General Fund. The most significant revenue source of the General Fund is property
taxes. This revenue source is received in two installments during the year – June and
December. As such, it is the City’s goal to begin each fiscal year with sufficient working capital to
fund operations between each semi-annual receipt of property taxes. The City’s policy for
unassigned funds in the General Fund is equal to 35% - 50% of the following year General Fund
expenditures.
At December 31, 2013, the unassigned fund balance of the General Fund was $7,997,036,
compared to its targeted unassigned fund balance of between $5,265,555 and $7,522,222.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
12. Tax Increment Districts
The HRA is the administering authority for the following Tax Increment Districts:
FiscalRetained
YearTax Capacity ValuesDisparityBy
EstablishedDistrictDistrict NameCurrentOriginalCapturedAdjustmentsAuthority
19856 Lake Pointe$936,604$326,940$609,664$ - $609,664
19899 Onan/Old Central Ave354,241 42,909 311,332 - 311,332
199211 University/Osborne77,248 26,478 50,770 - 50,770
199212 McGlynn's69,768 41,254 28,514 - 28,514
199513 Satellite Lane Apartments35,292 1,438 33,854 - 33,854
199716 57th Ave Replacement26,750 7,301 19,449 - 19,449
200017 Gateway East30,426 3,468 26,958 - 26,958
200718 Gateway West11,604 2,819 8,785 - 8,785
200719 Main Street165,914 45,628 120,286 - 120,286
1995HR1/Q2Housing Replacement1,563 191 1,372 1,372
1995HR1/Q3Housing Replacement1,371 236 1,135 1,135
1995HR1/Q4Housing Replacement4,051 469 3,582 - 3,582
1995HR1/S3Housing Replacement1,703 310 1,393 - 1,393
1995HR1/S4Housing Replacement2,069 338 1,731 - 1,731
1995HR1/S5Housing Replacement1,268 225 1,043 - 1,043
1995HR1/S6Housing Replacement1,471 266 1,205 - 1,205
1995HR1/T7Housing Replacement1,941 384 1,557 - 1,557
1995HR1/V9Housing Replacement596 596 - - -
1995HR1/W1Housing Replacement1,384 357 1,027 - 1,027
1995HR1/W2Housing Replacement914 286 628 - 628
1995HR1/W6Housing Replacement315 315 - - -
Totals$1,726,493$502,208$1,224,285$0$1,224,285
13. Commitments and Contingencies
A. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. During 1987, the City
established the Self Insurance Fund (an Internal Service Fund) to account for and finance its
uninsured risks of loss.
Workers compensation coverage is provided through a pooled self-insurance program through
the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to
the LMCIT. The City is subject to supplemental assessments if deemed necessary by the
LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA)
as required by law. For workers compensation, the City is subject to a $2,500 deductible.
Property and casualty insurance coverage is provided through a pooled self-insurance program
through LMCIT. The City pays an annual premium to the LMCIT. The City is subject to
supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through
commercial companies for claims in excess of various amounts. For property (other than
vehicles for which the City is self-insured) and casualty coverage, the City has a $75,000
deductible per occurrence with a $150,000 annual maximum. This deductible gets paid out of the
Self-Insurance Fund as necessary.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
The City continues to carry commercial insurance for all other risks of loss, including employee
health and disability insurance.
There were no significant reductions in insurance from the previous year or settlements in excess
of insurance coverage for any of the past three fiscal years.
In 1990, the General Fund contributed $1,000,000 to the Self Insurance Fund in lieu of the Self
Insurance Fund charging losses back to each fund.
There is no recorded liability for unpaid claims because the amount of such claims, if any, is
considered to be immaterial.
As of December 31, 2013, the Self Insurance Fund has accumulated equity in the amount of
$1,378,686 to cover future claims and losses.
B. Litigation
The City attorney has indicated that existing and pending lawsuits, claims and other actions in
which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the
judgment of the City attorney, remotely recoverable by plaintiffs.
C. Federal and State Funds
The City receives financial assistance from federal and state governmental agencies in the form
of grants. The disbursement of funds received under these programs generally requires
compliance with the terms and conditions specified in the grant agreements and are subject to
audit by the grantor agencies. Any disallowed claims resulting from such audits could become a
liability of the applicable fund. However, in the opinion of management, any such disallowed
claims will not have a material effect on any of the financial statements of the individual fund
types included herein or on the overall financial position of the City at December 31, 2013.
D. Tax Increment Districts
The City’s tax increment districts are subject to review by the State of Minnesota Office of the
State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability
of the applicable fund. Management has indicated that they are not aware of any instances of
noncompliance which would have a material effect on the financial statements.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
E. Contingent Liability
The HRA entered into various limited tax increment revenue notes with developers whereby the
HRA shall pay the developers the lesser of the scheduled payment or available tax increment.
Whether a payment will occur, and if so, the amount of the payment(s) are uncertain since all
payments are dependent on the HRA receiving tax increments from the developer’s project. As
such, this liability has not been recorded in the financial statements.
The HRA has issued various Tax Increment Revenue Notes. These notes are not a general
obligation of the HRA and are payable solely from available tax increments. Accordingly, these
notes are not reflected in the financial statements of the HRA. A schedule of outstanding notes at
December 31, 2013 is as follows:
Original InterestMaturity Outstanding
NotePrincipalRateDateBalance 12/31/13
Medtronic$10,000,0006.75%August 1, 2025$2,418,539
TIF #191,500,0007.00%February 1, 20251,528,050
Hazardous Substance4,500,0003.50%June 1, 20334,215,067
F. Construction Commitments
At December 31, 2013, the City had construction project contracts in progress. The commitments
related to the remaining contract balances amounted to $380,066.
14. Leases
A. Lease Expense
The City leases space for one of its liquor stores. Total costs for this lease was $133,714 for the
year ended December 31, 2013. The future minimum lease payments for this lease are as
follows:
Year Ending
December 31,Amount
2014$126,778
2015126,778
2016126,778
2017126,778
2018105,649
Total$612,761
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
B. Lease Revenue
The City receives revenue from agreements for the lease of space above its water towers to
communication companies. The space is used for antennas and other equipment necessary to
provide radio communications. For accounting purposes, the leases are considered operating
leases. Lease revenue for the year ended December 31, 2013, totaled $290,889. Terms of each
lease are as follows:
Annual
Lease
AdjustmentExpirationRenewal
LesseeFactor*DateOptions
T-Mobile-CommonsGreater of 2% or CPI up to 5%07/01/154 Five Year Renewals
T-Mobile Highway 65Greater of 3% or CPI12/31/161 Five Year Renewals
T-Mobile - Marion HillsGreater of 2% or CPI up to 5%09/01/174 Five Year Renewals
AT&T - GarageGreater of 5% or CPI12/01/134 Five Year Renewals
AT&T - Marion HillsGreater of 5% or CPI06/30/153 Five Year Renewals
Sprint - Highway 65Greater of 5% or CPI09/30/153 Five Year Renewals
Crown Castle - Well #13Greater of 5% or CPI09/30/132 Five Year Renewals
ClearWire Legacy-Marion HillsGreater of 4% or CPI08/01/154 Five Year Renewals
ClearWire Legacy-Hwy65Greater of 4% or CPI08/01/154 Five Year Renewals
ClearWire Legacy-CommonsGreater of 4% or CPI06/01/154 Five Year Renewals
TTM Operating Corp-CommonsGreater of 3% or CPI04/01/154 Five Year Renewals
TTM Operating Corp-Hwy65Greater of 3% or CPI08/01/154 Five Year Renewals
Metropolitan CouncilN/A12/31/134 One Year Renewals
*Amounts for future lease receipts are unavailable because they are based on the
Consumer Price Index.
15. Conduit Debt Obligation
From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to
private-sector entities for the acquisition and construction of industrial and commercial facilities deemed
to be in the public interest. The bonds are secured by the property financed and are payable solely from
payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the
acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the
State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds.
Accordingly, the bonds are not reported as liabilities in the accompanying financial statements.
As of December 31, 2013, there were 31 series of Industrial Revenue Bonds issued. The aggregate
principal amount payable for the eight series issued after July 1, 1995 is $12,558,824. The aggregate
principal amount payable for the twenty-two series issued prior to July 1, 1995, could not be determined;
however, their original issue amounts totaled $65.2 million.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
16. Deficit Fund Balances
At December 31, 2013, individual funds with a deficit fund balance are as follows:
Primary government:
Non major Special Revenue Fund:
Police Activity$97,712
Grant Management854
Component unit:
Lake Pointe447,886
Gateway East649,547
Gateway West631,206
57th Avenue Redevelopment28,679
TIF #193,346
Gateway NorthEast4,130,712
#20 BAE32,220
#20 - BAE Hazardous Subs286,132
#22 Northstar3,841
17. Contingent Receivable
In 1999, the HRA entered into an agreement with Medtronic for the sale of land from the HRA to
Medtronic. The original principal amount of the receivable was $5,000,000 and the outstanding balance
at December 31, 2013 is $4,085,515. Interest is added quarterly at a rate of 8.25%. Payments on the
note receivable are made in an amount equal to 11.11% of tax increment note payments received by
Medtronic through 2013, and 22.22% of tax increment note payments receivable from 2013 through
2026.
18. Change in Accounting Principle
For the year ended December 31, 2013, the City implemented GASB Statements No. 61 and 65. GASB
Statement No. 61, The Financial Reporting Entity: Omnibus – An Amendment of GASB No. 14 and No.34
modifies certain requirements for inclusion of component units in the financial reporting entity and also
amends the criteria for reporting component units as if they were part of the primary government (i.e.
blending). GASB Statement No. 65, Items Previously Reported as Assets and Liabilities resulted in
accounts previously presented as liabilities being reclassified as deferred inflows of resources.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
19. Recently Issued Accounting Standards
The Governmental Accounting Standards Boards (GASB) recently approved the following statements
which were not implemented for these financial statements:
City
Implementation
Upcoming GASB Statements Required By
Statement No. 67
Financial Reporting for Pension Plans – An amendment
2014
of GASB Statement No. 25.
Statement No. 68
Financial Reporting for Pensions – An amendment of
2015
GASB Statement No. 27.
Statement No. 69
Government Combinations and Disposal of Government
2014
Operations.
Statement No. 70
Financial Reporting for Nonexchange Financial
2014
Guarantees.
Statement No. 71
Pension Translation for Contributions Made Subsequent
2015
to the Measurement Date – An amendment of GASB Statement No. 68.
Statement No. 68 (2015) will require for the first time the City to record a liability for its
proportionate share of the net pension liability of cost-sharing multi-employer pension plans (i.e.,
PERA).
REQUIRED SUPPLEMENTARY INFORMATION
Exhibit B-1
Page 1 of 4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2013
With comparative actual amounts for the year ended December 31, 2012
2013
Variance with
Final Budget - 2012
Budgeted AmountsActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Taxes and special assessments:
Current ad valorem taxes$9,972,346$9,972,346$9,982,736$10,3909,585,780
Delinquent ad valorem taxes-net of abatements100,000100,000(223,035)(323,035)22,530
Penalties and interest25,00025,00027,5882,58833,184
Special assessments44,10044,10030,765(13,335)39,851
Total taxes and special assessments10,141,44610,141,4469,818,054(323,392)9,681,345
Licenses and permits:
Licenses:
Rental150,000150,000170,78120,781163,495
Business86,90086,90074,956(11,944)84,689
All other30,00030,00029,280(720)33,540
Permits533,250533,250583,29350,043570,252
Total licenses and permits800,150800,150858,31058,160851,976
Intergovernmental revenue:
Federal grants62,000109,13557,373(51,762)111,940
State maintenance aid330,000330,000361,54831,548347,539
State credits - - (47)(47)1,802
Local grants - 2,7852,110(675)3,500
Other state grants43,78254,50033,715(20,785)25,842
Police and fire pension370,300370,300455,10784,807384,155
Total intergovernmental revenue806,082866,720909,80643,086874,778
Charges for services:
General government1,440,6001,455,9551,438,486(17,469)1,411,283
Public safety287,752300,352381,74581,393314,727
Public works38,00038,00015,560(22,440)7,886
Community development11,50011,50018,6847,1847,833
Recreation216,900216,900224,9438,043230,347
Total charges for services1,994,7522,022,7072,079,41856,7111,972,076
Fines and forfeits155,000155,000180,81525,815170,427
Investment income:
Interest and dividends54,60054,60082,06682,06681,324
Net change in the fair market value of investments - - (115,992)(170,592)(85)
Total investment income54,60054,600(33,926)(88,526)81,239
Miscellaneous revenue:
Insurance and other reimbursements67,20069,375106,73237,357149,408
Gambling tax52,50052,50057,7885,28861,124
Donations - 22,26832,2309,96248,390
Miscellaneous41,30041,30066,30825,00812,466
Total miscellaneous revenue161,000185,443263,05877,615271,388
Total revenues14,113,030 14,226,066 14,075,535 (150,531)13,903,229
Exhibit B-1
Page 2 of 4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2013
With comparative actual amounts for the year ended December 31, 2012
2013
Variance with
Final Budget - 2012
Budgeted AmountsActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Expenditures:
General government:
City management:
Mayor and council:
Current:
Personal services$97,868$97,868$96,391$1,477$92,558
Supplies and other charges30,32028,38827,80758128,315
Total mayor and council128,188126,256124,1982,058120,873
City manager:
Current:
Personal services237,408195,046175,40119,645223,782
Supplies and other charges56,14174,52281,976(7,454)61,418
Total city manager293,549269,568257,37712,191285,200
Human resources:
Current:
Personal services191,255191,255196,648(5,393)189,110
Supplies and other charges18,45717,7098,0369,6739,571
Total human resources209,712208,964204,6844,280198,681
Legal:
Current:
Supplies and other charges423,990422,378402,38419,994402,952
Total city management1,055,4391,027,166988,64338,5231,007,706
Finance:
Elections:
Current:
Personal services - - 242(242)38,402
Supplies and other charges6,4606,4565,4241,0323,882
Total elections6,4606,4565,66679042,284
Accounting:
Current:
Personal services651,731634,000630,4983,502608,573
Supplies and other charges64,38059,88866,534(6,646)64,539
Total accounting716,111693,888697,032(3,144)673,112
Assessing:
Current:
Personal services206,488202,771203,163(392)184,335
Supplies and other charges7,2216,5364,2142,32213,201
Total assessing213,709209,307207,3771,930197,536
MIS:
Current:
Personal services214,473214,473222,318(7,845)210,856
Supplies and other charges36,18135,30435,2089657,274
Total MIS250,654249,777257,526(7,749)268,130
City clerk/records:
Personal services140,193121,193110,42510,768138,552
Supplies and other charges20,93339,49938,2541,24519,886
Total city clerk/records161,126160,692148,67912,013158,438
Total finance1,348,0601,320,1201,316,2803,8401,339,500
Nondepartmental:
Current:
Personal services10,00010,000 - 10,00010,966
Supplies and other charges27,60041,67312,72228,95115,569
Total nondepartmental37,60051,67312,72238,95126,535
Exhibit B-1
Page 3 of 4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2013
With comparative actual amounts for the year ended December 31, 2012
2013
Variance with
Final Budget - 2012
Budgeted AmountsActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Expenditures: (continued)
General government: (continued)
Municipal center:
Current:
Personal services$40,396$40,396$22,703$17,693$22,619
Supplies and other charges223,372222,546205,87016,676208,724
Total municipal center263,768262,942228,57334,369231,343
Total general government2,704,8672,661,9012,546,218115,6832,605,084
Public safety:
Police:
Police protection:
Current:
Personal services4,785,4354,876,8074,817,91158,8964,578,675
Supplies and other charges530,378598,629522,68975,940493,565
Captital outlay - 18,5689,9918,5775,467
Total police protection5,315,8135,494,0045,350,591143,4135,077,707
Civil defense:
Current:
Supplies and other charges19,84620,01820,044(26)17,544
Total police5,335,6595,514,0225,370,635143,3875,095,251
Fire:
Fire protection:
Current:
Personal services1,063,408992,8781,005,149(12,271)1,004,487
Supplies and other charges174,144152,577166,243(13,666)165,817
Capital outlay - - - - -
Total fire protection1,237,5521,145,4551,171,392(25,937)1,170,304
Rental inspections:
Current:
Personal services136,713136,713117,59319,120130,283
Supplies and other charges11,11526,8356,62220,2138,096
Total rental inspections147,828163,548124,21539,333138,379
Total fire1,385,3801,309,0031,295,60713,3961,308,683
Total public safety6,721,0396,823,0256,666,242156,7836,403,934
Public works:
Engineering:
Current:
Personal services492,177492,177504,147(11,970)458,742
Supplies and other charges61,25458,08658,830(744)66,566
Total engineering553,431550,263562,977(12,714)525,308
Public works and parks:
Current:
Personal services1,725,5041,732,3701,698,38733,9831,613,545
Supplies and other charges1,051,5211,035,0031,005,28929,714871,084
Capital outlay - - 8,636(8,636)5,866
Total public works and parks2,777,0252,767,3732,712,31255,0612,490,495
Total public works3,330,4563,317,6363,275,28942,3473,015,803
Exhibit B-1
Page 4 of 4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2013
With comparative actual amounts for the year ended December 31, 2012
2013
Variance with
Final Budget - 2012
Budgeted AmountsActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Expenditures: (continued)
Community development:
Building inspection:
Current:
Personal services256,632280,631273,9546,677251,063
Supplies and other charges64,22660,48463,437(2,953)74,470
Total building inspection320,858341,115337,3913,724325,533
Planning:
Current:
Personal services$410,494$424,567$433,947($9,380)$365,991
Supplies and other charges54,25068,95846,55722,40180,546
Total planning464,744493,525480,50413,021446,537
Total community development785,602834,640817,89516,745772,070
Parks and recreation:
Current:
Personal services615,947615,947589,94626,001565,830
Supplies and other charges265,818273,968257,80116,167231,911
Capital outlay - - - - 12,830
Total parks and recreation881,765889,915847,74742,168810,571
Contingency:
Current:
Supplies and other charges120,000120,000 - 120,000 -
Total expenditures14,543,72914,647,11714,153,391493,72613,607,462
Excess (deficiency) of revenues over
(under) expenditures(430,699)(421,051)(77,856)343,195295,767
Other financing sources (uses):
Transfers in641,000641,000641,000 - 600,000
Transfers out(159,125)(159,125)(145,052)14,073 -
Total other financing sources481,875481,875495,94814,073600,000
Net change in fund balance$51,176$60,824418,092$357,268895,767
Fund balance - January 17,669,3226,773,555
Fund balance - December 31$8,087,414$7,669,322
CITY OF
FRIDLEY
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2013
A. BUDGETS
The General Fund budget is legally adopted on a basis consistent with accounting principles
generally accepted in the United States of America. The legal level of budgetary control is at the
expenditure category level.
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS - RETIREE HEALTH PLAN
For The Year Ended December 31, 2013
Unfunded
ActuarialActuarialUAAL as a
ActuarialActuarialAccruedAccruedFundedCoveredPercentage of
ValuationValue of AssetsLiability (AAL)*Liability (UAAL)RatioPayrollCovered Payroll
Date(a)(b)(b-a)(a/b)(c) ( (b-a) / c)
January 1, 2011$ - $616,348$616,3480.0%$8,186,0317.5%
January 1, 2008$ - $1,910,670$1,910,6700.0%$9,303,57620.5%
*Using the projected unit credit actuarial cost method.
Note, the first OPEB actuarial valuation was conducted as of January 1, 2008. There is no data available prior
to the first valuation.
COMBINED, COMBINING AND INDIVIDUAL FUND STATEMENTS AND
SCHEDULES
CITY OF
FRIDLEY
NONMAJOR GOVERNMENTAL FUNDS
Exhibit C-1
CITY OF FRIDLEY, MINNESOTA
COMBINED BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2013
Total Nonmajor Governmental
Special RevenueCapital ProjectFunds
20132012
Assets
Cash and investments$1,628,903$102,365$1,731,268$2,687,928
Receivables:
Accounts95,349 - 95,34993,165
Taxes10,053 - 10,0539,146
Due from other governments47,559 - 47,55917,371
Total assets$1,781,864$102,365$1,884,229$2,807,610
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$57,232$ - $57,232$41,809
Contracts payable - - - 131,666
Due to other governments320 - 320147
Due to other funds97,712 - 97,71297,712
Salaries payable26,724 - 26,72419,425
Unearned revenue66,415 - 66,415127,194
Total liabilities248,4030248,403417,953
Deferred inflows of resources:
Unavailable revenue6,308 - 6,3086,633
Total deferred inflows of resources6,30806,3086,633
Fund balance:
Restricted182,210 - 182,2101,034,373
Committed1,443,509102,3651,545,8741,446,363
Unassigned(98,566) - (98,566)(97,712)
Total fund balance1,527,153102,3651,629,5182,383,024
Total liabilities, deferred inflows
of resources, and fund balance$1,781,864$102,365$1,884,229$2,807,610
Exhibit C-
2
CITY OF FRIDLEY, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2013
With comparative amounts for the year ended December 31, 2012
Special CapitalTotal Nonmajor
RevenueProjectGovernmental Funds
20132012
Revenues:
Taxes$318,634$ - $318,634$318,168
Licenses and permits265,325 - 265,325252,528
Intergovernmental revenue180,720293,500474,220174,828
Charges for services382,886 - 382,886362,479
Fines and forfeits37,379 - 37,37985,195
Investment income:
Interest and dividends12,2937,83120,12419,873
Net change in the fair value of investments(25,401)(10,282)(35,683)(1,774)
Miscellaneous18,4887,79626,28450,216
Total revenues1,190,324 298,845 1,489,169 1,261,513
Expenditures:
Current:
General government636,910 - 636,910647,690
Public safety63,235 - 63,23528,308
Parks and recreation411,839 - 411,839418,518
Debt service - - - 33,581
Capital outlay60,9801,125,4421,186,422608,101
Total expenditures1,172,9641,125,4422,298,4061,736,198
Excess (deficiency) of revenues over (under) expenditures17,360 (826,597)(809,237)(474,685)
Other financing sources (uses):
Bonds issued - - - 1,280,000
Proceeds from sale of capital assets - 35,67935,67963,445
Transfers in20,052 - 20,05236,819
Total other financing sources (uses)20,052 35,679 55,731 1,380,264
Net change in fund balance37,412 (790,918)(753,506)905,579
Fund balance - January 11,489,741893,2832,383,0241,477,445
Fund balance - December 31$102,365$1,629,518$2,383,024
$1,527,153
CITY OF
FRIDLEY
NONMAJOR 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 governmental functions or activities.
Cable TV Fund - This fund receives revenues from the issuance of a franchise agreement with
the cable TV provider. These revenues are used for the operation and maintenance of a
government access channel.
Grant Management Fund – This fund administers grants received from a variety of
intergovernmental agencies, which the amounts are restricted. In most cases, grant funds are
provided on a reimbursement basis following proper documentation of expenditures, however, in
some cases the money is provided in advance to spend on specific activities outlined in the
grant.
Solid Waste Abatement Fund - This fund receives grants, recycling fees and yard waste fees.
These revenues finance the City’s curbside recycling pickup and operation of the yard waste
transfer site.
Drug and Gambling Forfeiture Fund - This fund receives forfeited property in connection with
illegal gambling or drug activity. Pursuant to Minnesota Statutes, the proceeds are disbursed
between the investigating agency and the prosecuting agency.
Police Activity Fund - This fund is used to track the revenue and expenditures of externally
funded police positions.
Springbrook Nature Center Fund - This fund was established in 2005 after a $275,000
referendum supporting the Springbrook Nature Center was approved by the voters in
November of 2004. The revenues from the annual levy are used for the on-going operation of
the nature center and the capital improvement projects required in the park.
CITY OF FRIDLEY, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2013
GrantSolid Waste
AssetsCable TVManagementAbatement
Cash and investments$1,321,667$70,509$42,331
Receivables:
Accounts67,495 - 27,854
Taxes - - -
Due from other governments - 62344,469
Total assets$1,389,162$71,132$114,654
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$235$369$31,611
Contracts payable - - -
Due to other governments - - -
Due to other funds - - -
Salaries payable5,0735,2024,460
Unearned revenue - 66,415 -
Total liabilities5,30871,98636,071
Deferred inflows of resources:
Unavailable revenue - - -
Total deferred inflows of resources - - -
Fund balance:
Restricted72,640 - -
Committed1,311,214 - 78,583
Unassigned - (854) -
Total fund balance1,383,854(854)78,583
Total liabilities, deferred inflows
of resources, and fund balance$1,389,162$71,132$114,654
Exhibit C-3
Drug and Gambling Springbrook Nature
ForfeiturePolice ActivityCenter
Totals Nonmajor Special Revenue Funds
20132012
$123,910$ - $70,486$1,628,903$1,787,332
- - - 95,34993,165
- - 10,05310,0539,146
742 - 1,72547,55917,371
$124,652$0$82,264$1,781,864$1,907,014
$22,082$ - $2,935$57,232$34,496
- - - - 131,666
- - 320320147
- 97,712 - 97,71297,712
- - 11,98926,72419,425
- - - 66,415127,194
22,08297,71215,244248,403410,640
- - 6,3086,3086,633
- - 6,3086,3086,633
102,570 - 7,000182,210207,100
- - 53,7121,443,5091,380,353
- (97,712) - (98,566)(97,712)
102,570(97,712)60,7121,527,1531,489,741
$124,652$0$82,264$1,781,864$1,907,014
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2013
With comparative totals for the year ended December 31, 2012
GrantSolid Waste
Cable TVManagementAbatement
Revenues:
Taxes$ - $ - $ -
Licenses and permits265,325 - -
Intergovernmental revenue - 113,41864,039
Charges for services700 - 281,042
Fines and forfeits - - -
Investment income:
Interest and dividends11,358 - -
Net change in the fair value of investments(24,975) - -
Miscellaneous - 3057,573
Total revenues252,408113,723352,654
Expenditures:
Current:
General government170,820114,577351,513
Public safety - - -
Parks and recreation - - -
Capital outlay - - -
Total expenditures170,820114,577351,513
Excess (deficiency) of revenues
over (under) expenditures81,588(854)1,141
Other financing sources (uses):
Transfers in - - 20,052
Net change in fund balance81,588(854)21,193
Fund balance - January 11,302,266 - 57,390
Fund balance - December 31$1,383,854($854)$78,583
Exhibit C-4
Drug and
GamblingSpringbrook
ForfeiturePolice ActivityNature Center
Totals Nonmajor Special Revenue Funds
20132012
$ - $ - $318,634$318,634$318,168
- - - 265,325252,528
- - 3,263180,720174,828
- - 101,144382,886362,479
37,379 - - 37,37985,195
- - 93512,29315,866
- - (426)(25,401)(332)
500 - 10,11018,48850,216
37,8790433,6601,190,3241,258,948
- - - 636,910647,690
63,235 - - 63,23528,308
- - 411,839411,839418,518
- - 60,98060,980188,955
63,2350472,8191,172,9641,283,471
(25,356)0(39,159)17,360(24,523)
- - - 20,05236,819
(25,356)0(39,159)37,41212,296
127,926(97,712)99,8711,489,7411,477,445
$102,570($97,712)$60,712$1,527,153$1,489,741
Exhibit D-1
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - CABLE TV FUND
COMPARATIVE BALANCE SHEET
December 31, 2013 and 2012
Assets
20132012
Cash and investments$1,321,667$1,375,597
Accounts receivable67,49565,167
Total assets$1,389,162$1,440,764
Liabilities and Fund Balance
Liabilities:
Accounts payable$235$3,873
Contracts payable - 131,666
Salaries payable5,0732,959
Total liabilities5,308138,498
Fund balance:
Restricted72,64072,640
Committed1,311,2141,229,626
Total fund balance1,383,8541,302,266
Total liabilities and fund balance$1,389,162$1,440,764
Exhibit D-2
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - CABLE TV FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2013
With comparative actual amounts for the year ended December 31, 2012
20132012
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Licenses - franchise fee$270,000$268,000$265,325$252,528
Charges for services800700700711
Investment income:
Interest and dividends15,00015,00011,35815,344
Net change in the fair value of investments - - (24,975)(322)
Miscellaneous200 - - -
Total revenues286,000 283,700 252,408 268,261
Expenditures:
Current:
General government:
Personal services145,047147,120152,008141,508
Supplies and other charges25,73523,83518,81227,481
Capital outlay - - - 162,761
Total expenditures170,782 170,955 170,820 331,750
Excess (deficiency) of revenues over (under) expenditures$115,218$112,74581,588(63,489)
Fund balance - January 11,302,2661,365,755
Fund balance - December 31$1,383,854$1,302,266
Exhibit D-3
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - GRANT MANAGEMENT FUND
COMPARATIVE BALANCE SHEET
December 31, 2013 and 2012
Assets
20132012
Cash and investments$70,509$123,220
Due from other governments6238,397
Total assets$71,132$131,617
Liabilities and Fund Balance
Liabilities:
Accounts payable$369$651
Salaries payable5,2023,772
Unearned revenue66,415127,194
Total liabilities71,986131,617
Fund balance:
Unassigned(854) -
Total fund balance(854)0
Total liabilities and fund balance$71,132$131,617
Exhibit D-4
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - GRANT MANAGEMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2013
With comparative actual amounts for the year ended December 31, 2012
2013
2012
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Intergovernmental:
Federal grants$100,964$101,388$103,529$99,222
State grants6,00013,2899,8898,204
Miscellaneous305465
Total revenues106,964 114,677 113,723 107,891
Expenditures:
Current:
Community development:
Personal services93,789104,373101,82899,720
Supplies and other charges13,17510,30412,7498,171
Total expenditures106,964 114,677 114,577 107,891
Excess (deficiency) of revenues over
(under) expenditures$0$0(854) -
Fund balance - January 1 - -
Fund balance - December 31($854)$0
Exhibit D-5
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - SOLID WASTE ABATEMENT FUND
COMPARATIVE BALANCE SHEET
December 31, 2013 and 2012
Assets
20132012
Cash and investments$42,331$44,136
Accounts receivable27,854$27,998
Due from other governments44,4698,974
Total assets$114,654$81,108
Liabilities and Fund Balance
Liabilities:
Accounts payable$31,611$21,709
Salaries payable4,4602,009
Total liabilities36,07123,718
Fund balance:
Committed78,58357,390
Total liabilities and fund balance$114,654$81,108
Exhibit D-6
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - SOLID WASTE ABATEMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2013
With comparative actual amounts for the year ended December 31, 2012
20132012
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Intergovernmental revenue:
State$64,000$71,935$64,039$65,550
Charges for services283,196280,831281,042271,805
Miscellaneous2,0003,2007,57318,522
Total revenues349,196 355,966 352,654 355,877
Expenditures:
Current:
General government:
Personal services69,21388,48250,79639,133
Supplies and other charges296,314310,956300,717331,677
Total expenditures365,527 399,438 351,513 370,810
Excess (deficiency) of revenues
over (under) expenditures(16,331)(43,472)1,141(14,933)
Other financing sources:
Transfers in34,12536,11620,05236,819
Net change in fund balance$17,794($7,356)21,19321,886
Fund balance - January 157,39035,504
Fund balance - December 31$78,583$57,390
Exhibit D-7
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - DRUG AND GAMBLING FORFEITURE FUND
COMPARATIVE BALANCE SHEET
December 31, 2013 and 2012
Assets
20132012
Cash and investments$123,910$131,285
Due from other governments742 -
Total assets$124,652$131,285
Liabilities and Fund Balance
Liabilities$22,082$3,359
Fund balance:
Restricted102,570127,926
Total fund balance102,570127,926
Total liabilities and fund balance$124,652$131,285
Exhibit D-8
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - DRUG AND GAMBLING FORFEITURE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2013
With comparative actual amounts for the year ended December 31, 2012
20132012
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Fines and forfeits$ - $62,800$37,379$84,743
Miscellaneous - 500500 -
Total revenues - 63,30037,87984,743
Expenditures:
Current:
Public safety
Personal services - 7006871,142
Supplies and other charges - 62,60062,54827,166
Total expenditures - 63,30063,23528,308
Excess (deficiency) of revenues
over (under) expenditures$0$0(25,356)56,435
Fund balance - January 1127,92671,491
Fund balance - December 31$102,570$127,926
Exhibit D-9
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - POLICE ACTIVITY FUND
COMPARATIVE BALANCE SHEET
December 31, 2013 and 2012
Assets
20132012
Total assets$0$0
Liabilities and Fund Balance
Liabilities:
Due to other funds$97,712$97,712
Fund balance:
Unassigned(97,712)(97,712)
Total liabilities and fund balance$0$0
Exhibit D-10
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - POLICE ACTIVITY FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2013
With comparative actual amounts for the year ended December 31, 2012
20132012
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Fines and forfeits$ - $ - $ - $452
Expenditures - - - -
Excess (deficiency) of revenues
over (under) expenditures$0$00452
Fund balance (deficit) - January 1(97,712)(98,164)
Fund balance (deficit) - December 31($97,712)($97,712)
Exhibit D-11
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - SPRINGBROOK NATURE CENTER FUND
COMPARATIVE BALANCE SHEET
December 31, 2013 and 2012
Assets
20132012
Cash and investments$70,486$113,094
Receivables:
Taxes10,0539,146
Due from other governments1,725 -
Total assets$82,264$122,240
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$2,935$4,904
Due to other governments320147
Salaries payable11,98910,685
Total liabilities15,24415,736
Deferred inflows of resources:
Unavailable revenue6,3086,633
Total deferred inflows of resources6,3086,633
Fund balance:
Restricted(32,159)3,546
Committed92,87196,325
Total fund balance60,71299,871
Total liabilities, deferred inflows of resources and fund balance$82,264$122,240
Exhibit D-12
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - SPRINGBROOK NATURE CENTER FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2013
With comparative actual amounts for the year ended December 31, 2012
20132012
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Taxes$331,700$331,700$318,634$318,168
Intergovernmental revenue:
Local grant - 3,2633,2631,852
Charges for service93,70091,100101,14489,963
Investment income:
Interest and dividends - - 935522
Net change in the fair value of investments - - (426)(10)
Miscellaneous - 6,79710,11031,229
Total revenues425,400432,860433,660441,724
Expenditures:
Current:
Parks, recreation and naturalist
Personal services339,859337,859334,127343,376
Supplies and other charges70,35880,41877,71275,142
Capital outlay - 61,00060,98026,194
Total expenditures410,217 479,277 472,819 444,712
Excess (deficiency) of revenues
over (under) expenditures$15,183($46,417)(39,159)(2,988)
Fund balance - January 199,871102,859
Fund balance - December 31$60,712$99,871
CITY OF
FRIDLEY
NONMAJOR CAPITAL PROJECT FUND
The Capital Equipment Fund - is used to account for the purchase and repair of
major capital equipment.
MAJOR CAPITAL PROJECT FUND
The Capital Improvement Fund - is established to provide special accounting for
bond proceeds, grants and contributions designated for the acquisition of capital
assets.
Exhibit E-1
CITY OF FRIDLEY, MINNESOTA
CAPITAL PROJECT FUND - CAPITAL EQUIPMENT
COMPARATIVE BALANCE SHEET
December 31, 2013 and 2012
Assets
20132012
Cash and investments$102,365$900,596
Total assets$102,365$900,596
Liabilities and Fund Balance
Liabilities:
Accounts payable$ - $7,313
Total liabilities07,313
Fund balance:
Restricted - 827,273
Committed102,36566,010
Total fund balance102,365893,283
Total liabilities and fund balance$102,365$900,596
Exhibit E-2
CITY OF FRIDLEY, MINNESOTA
CAPITAL PROJECT FUND - CAPITAL EQUIPMENT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2013
With comparative actual amounts for the year ended December 31, 2012
20132012
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Intergovernmental revenue$243,500$293,500$293,500$ -
Investment income:
Interest and dividends - - 7,8312,276
Net change in the fair value of investments - - (10,282)289
Miscellaneous - 2,5007,796 -
Total revenues243,500 296,000 298,845 2,565
Expenditures:
Debt service - - - 33,581
Capital outlay1,065,4001,125,5001,125,442419,146
Total expenditures1,065,400 1,125,500 1,125,442 452,727
Excess (deficiency) of revenues over (under) expenditures(821,900)(829,500)(826,597)(450,162)
Other financing sources (uses):
Bonds issued - - - 1,280,000
Proceeds from sale of capital assets - 32,20035,67963,445
Total other financing sources (uses) - 32,20035,6791,343,445
Net change in fund balance($821,900)($797,300)(790,918)893,283
Fund balance - January 1893,283 -
Fund balance - December 31$102,365$893,283
Exhibit E-3
CITY OF FRIDLEY, MINNESOTA
CAPITAL PROJECT FUND - CAPITAL IMPROVEMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2013
With comparative actual amounts for the year ended December 31, 2012
20132012
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Taxes$ - $ - ($443)$76
Special assessments - - 417,81251,888
Intergovernmental revenue:
State823,5001,045,9001,041,7851,599,601
Investment income:
Interest and dividends50,95550,94050,16961,026
Net change in the fair value of investments - - (111,941)(1,731)
Miscellaneous10,00010,0006,067750
Total revenues884,455 1,106,840 1,403,449 1,711,610
Expenditures:
Current:
General government:
Supplies and other charges - - 82,67949,364
Public safety:
Supplies and other charges - 31,85775,038 -
Public works:
Supplies and other charges - - 1,980 -
Parks and recreation:
Supplies and other charges40,00040,00045,57235,830
Capital outlay457,500596,500235,093280,261
Total expenditures497,500 668,357 440,362 365,455
Excess of revenues over expenditures386,955438,483963,0871,346,155
Other financing sources (uses):
Transfers out(841,000)(841,000)(800,000)(870,000)
Transfers in95,000 - - -
Total other financing sources (uses)(746,000)(841,000)(800,000)(870,000)
Net change in fund balance($359,045)($402,517)163,087476,155
Fund balance - January 15,740,4735,264,318
Fund balance - December 31$5,903,560$5,740,473
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for goods and services that are
provided on a cost reimbursement or fee basis to departments or agencies within
the City. These funds are essential for segregating costs for determining the
total cost of providing a service and for assuring that the goods and services
provided are properly utilized. These funds are accounted for on a capital
maintenance measurement focus and use the accrual basis of accounting.
Employee Benefits Fund – This fund is used to account for the expenses
associated with providing fringe benefits for employees.
Self-Insurance Fund – This fund is used to account for all revenues and
expenses associated with the $50,000 deductible in the City’s general liability
policy.
Information Systems Fund – This fund is used to account for all revenues and
expenses associated with maintaining and upgrading the City’s computerized
information systems.
Exhibit F-1
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31, 2013
With comparative totals for December 31, 2012
EmployeeSelfInformation
BenefitsInsuranceSystems
Totals
Assets:20132012
Current assets:
Cash and investments$1,100,624$1,375,797$543,278$3,019,699$3,079,034
Accounts receivable - 8,822 - 8,822 -
Due from component unit2,427 - - 2,42769
Total current assets1,103,0511,384,619543,2783,030,9483,079,103
Capital assets, at cost:
Machinery and equipment - - 1,471,0901,471,0901,462,918
Less: accumulated depreciation - - (1,194,594)(1,194,594)(1,111,685)
Net capital assets00276,496276,496351,233
Total assets1,103,0511,384,619819,7743,307,4443,430,336
Liabilities:
Current liabilities:
Accounts payable4014,9342,1477,4823,191
Due to other governments - 999 - 999 -
Payroll deductions payable97,991 - - 97,99195,215
Compensated absences payable -
current portion776,529 - - 776,529763,779
Total current liabilities874,9215,9332,147883,001862,185
Noncurrent liabilities:
Compensated absences payable186,431 - - 186,431203,972
Total liabilities1,061,3525,9332,1471,069,4321,066,157
Net position:
Net investment in capital assets - - 276,496276,496351,233
Unrestricted41,6991,378,686541,1311,961,5162,012,946
Total net position$41,699$1,378,686$817,627$2,238,012$2,364,179
Exhibit F-2
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For The Year Ended December 31, 2013
With comparative totals for the year ended December 31, 2012
EmployeeSelfInformationIntra-Activity
BenefitsInsuranceSystemsEliminations
Totals
20132012
Operating revenues:
Charges for services$56,954$149,925$6,456$ - $213,335$291,859
Operating expenses:
Personal services56,51610,691 - - 67,20749,410
Supplies and other charges2,099210,82414,559 - 227,482231,876
Depreciation - - 147,354 - 147,354136,123
Total operating expenses58,615221,515161,9130442,043417,409
Operating income (loss)(1,661)(71,590)(155,457)0(228,708)(125,550)
Nonoperating revenues:
Investment income:
Interest and dividends10,27212,0413,111 - 25,42433,014
Net change in the fair value of investment(23,129)(26,313)(7,330)(56,772)
s
Intergovernmental - - - - - 10,365
Insurance reimbursement - 8,889 - - 8,889200
Total nonoperating revenues(12,857)(5,383)(4,219)0(22,459)43,579
Income (loss) before transfers(14,518)(76,973)(159,676)0(251,167)(81,971)
Other financing sources (uses):
Transfers in - - 250,000(125,000)125,000 -
Transfers out(125,000) - - 125,000 - -
Total other financing sources (uses)(125,000) - 250,000 - 125,000 -
Change in net position(139,518)(76,973)90,3240(126,167)(81,971)
Net position - January 1181,2171,455,659727,303 - 2,364,1792,446,150
Net position - December 31$41,699$1,378,686$817,627$0$2,238,012$2,364,179
Exhibit F-3
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For The Year Ended December 31, 2013
With comparative totals for the year ended December 31, 2012
EmployeeSelfInformation
BenefitsInsuranceSystems
Totals
20132012
Cash flows from operating activities:
Receipts from interfund services provided$54,596$141,103$6,456$202,155$291,882
Payment to suppliers(1,698)(207,311)(13,183)(222,192)(236,971)
Payment to employees(58,531)(10,691) - (69,222)(84,044)
Net cash flows from operating activities(5,633)(76,899)(6,727)(89,259)(29,133)
Cash flows from noncapital financing activities:
Transfer in - - 250,000250,00059,000
Transfer out(125,000) - - (125,000)(59,000)
Net cash flows from
noncapital financing activties(125,000)0250,000125,0000
Cash flows from capital and related
financing activities:
Acquisition of capital assets - - (72,617)(72,617)(196,585)
Intergovernmental revenue - - - - 10,365
Insurance reimbursement - 8,889 - 8,889200
Net cash flows from capital and
and related financing activities 08,889(72,617)(63,728)(186,020)
Cash flows from investing activities:
Investment income(12,857)(14,272)(4,219)(31,348)33,014
Net increase (decrease) in cash and
cash equivalents(143,490)(82,282)166,437(59,335)(182,139)
Cash and cash equivalents - January 11,244,1141,458,079376,8413,079,0343,261,173
Cash and cash equivalents - December 31$1,100,624 $1,375,797 $543,278 $3,019,699 $3,079,034
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) ($1,661)($71,590)($155,457)($228,708)($125,550)
Adjustments to reconcile operating income
(loss) to net cash flows from operating
activities:
Depreciation - - 147,354147,354136,123
Changes in assets and liabilities:
Decrease (increase) in receivables(2,358)(8,822) - (11,180)23
Increase (decrease) in payables(1,614)3,5131,3763,275(39,729)
Total adjustments(3,972)(5,309)148,730 139,449 96,417
Net cash provided by operating activities($5,633)($76,899)($6,727)($89,259)($29,133)
Exhibit F-4
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND - EMPLOYEE BENEFITS FUND
COMPARATIVE STATEMENT OF NET POSITION
December 31, 2013
With comparative totals for December 31, 2012
20132012
Assets:
Current assets:
Cash and investments$1,100,624$1,244,114
Due from component unit2,42769
Total current assets1,103,0511,244,183
Liabilities:
Current liabilities:
Accounts payable401 -
Payroll deductions payable97,99195,215
Compensated absences payable - current portion776,529763,779
Total current liabilities874,921858,994
Noncurrent liabilities:
Compensated absences payable 186,431203,972
Total liabilities1,061,3521,062,966
Net position:
Unrestricted41,699181,217
Total net position$41,699$181,217
Exhibit F-5
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND - EMPLOYEE BENEFITS FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
For The Year Ended December 31, 2013
With comparative amounts for the year ended December 31, 2012
20132012
Operating revenues$56,954$21,410
Operating expenses:
Personal services56,51622,869
Supplies and other charges2,0991,700
Total operating expenses58,61524,569
Operating income (loss)(1,661)(3,159)
Nonoperating revenues:
Investment income:
Interest and dividends10,27214,278
Net change in the fair value of investments(23,129)(495)
Total nonoperating revenues(12,857)13,783
Income before transfers(14,518)10,624
Other financing uses:
Transfers out(125,000)(59,000)
Change in net position(139,518)(48,376)
Net position - January 1181,217229,593
Net position - December 31$41,699$181,217
Exhibit F-6
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND - EMPLOYEE BENEFITS FUND
COMPARATIVE STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2013
With comparative amounts for the year ended December 31, 2012
20132012
Cash flows from operating activities:
Receipts from interfund services provided$54,596$21,433
Payment to suppliers(1,698)(1,700)
Payment to employees(58,531)(57,503)
Net cash flows from operating activities(5,633)(37,770)
Cash flows from noncapital financing activities:
Transfer out(125,000)(59,000)
Cash flows from investing activities:
Investment income(12,857)13,783
Net increase in cash and cash equivalents(143,490)(82,987)
Cash and cash equivalents - January 11,244,1141,327,101
Cash and cash equivalents - December 31$1,100,624 $1,244,114
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) ($1,661)($3,159)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Changes in assets and liabilities:
(Increase) decrease in receivables(2,358)23
Increase (decrease) in payables(1,614)(34,634)
Total adjustments(3,972)(34,611)
Net cash provided by operating activities($5,633)($37,770)
Exhibit F-7
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND - SELF INSURANCE FUND
COMPARATIVE STATEMENT OF NET POSITION
December 31, 2013
With comparative amounts for December 31, 2012
20132012
Assets:
Current assets:
Cash and investments$1,375,797$1,458,079
Accounts receivable8,822 -
Total assets1,384,6191,458,079
Liabilities:
Current liabilities:
Accounts payable4,9342,420
Due to other governments999 -
Total liabilities5,9332,420
Net position:
Unrestricted1,378,6861,455,659
Total net position$1,378,686$1,455,659
Exhibit F-8
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND - SELF INSURANCE FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
For The Year Ended December 31, 2013
With comparative amounts for the year ended December 31, 2012
20132012
Operating revenues:
Charges for services$149,925$196,889
Operating expenses:
Supplies and other charges210,824217,687
Personal services10,69126,541
Total operating expenses221,515244,228
Operating income (loss)(71,590)(47,339)
Nonoperating revenues (expenses):
Intergovernmental - 10,365
Investment income:
Interest and dividends12,04115,771
Net change in the fair value of investments(26,313)(737)
Insurance reimbursement8,889200
Total nonoperating revenues (expenses)(5,383)25,599
Change in net position(76,973)(21,740)
Net position - January 11,455,6591,477,399
Net position - December 31$1,378,686$1,455,659
Exhibit F-9
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND - SELF INSURANCE FUND
COMPARATIVE STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2013
With comparative amounts for the year ended December 31, 2012
20132012
Cash flows from operating activities:
Receipts from interfund services provided$141,103$196,889
Payment to suppliers(207,311)(218,612)
Payment to employees(10,691)(26,541)
Net cash flows from operating activities(76,899)(48,264)
Cash flows from capital and related financing activities:
Intergovernmental revenue -10,365
Insurance reimbursement8,889200
Net cash flows provided from capital and related financing activities8,88910,565
Cash flows from investing activities:
Investment income(14,272)15,034
Net increase (decrease) in cash and cash equivalents(82,282)(22,665)
Cash and cash equivalents - January 11,458,0791,480,744
Cash and cash equivalents - December 31$1,375,797 $1,458,079
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) ($71,590)($47,339)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Changes in assets and liabilities:
(Increase) decrease in receivables(8,822) -
Increase (decrease) in payables3,513(925)
Total adjustments(5,309)(925)
Net cash provided (used) by operating activities($76,899)($48,264)
Exhibit F-10
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND - INFORMATION SYSTEMS FUND
COMPARATIVE STATEMENT OF NET POSITION
December 31, 2013
With comparative amounts for December 31, 2012
20132012
Assets:
Current assets:
Cash and investments$543,278$376,841
Capital assets, at cost:
Property and equipment1,471,0901,462,918
Less: accumulated depreciation(1,194,594)(1,111,685)
Net capital assets276,496351,233
Total assets819,774728,074
Liabilities:
Current liabilities:
Accounts payable2,147771
Net position:
Net investment in capital assets276,496351,233
Unrestricted541,131376,070
Total net position$817,627$727,303
Exhibit F-11
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND - INFORMATION SYSTEMS FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
For The Year Ended December 31, 2013
With comparative amounts for the year ended December 31, 2012
20132012
Operating revenues:
Charges for services$6,456$73,560
Operating expenses:
Supplies and other charges14,55912,489
Depreciation147,354136,123
Total operating expenses161,913148,612
Operating income (loss)(155,457)(75,052)
Nonoperating revenues:
Investment income:
Interest and dividends3,1114,562
Net change in the fair value of investments(7,330)(365)
Total nonoperating revenues(4,219)4,197
Income before transfers(159,676)(70,855)
Other financing uses:
Transfers in250,00059,000
Change in net position90,324(11,855)
Net position - January 1727,303739,158
Net position - December 31$817,627$727,303
Exhibit F-12
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND - INFORMATION SYSTEMS FUND
COMPARATIVE STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2013
With comparative amounts for the year ended December 31, 2012
20132012
Cash flows from operating activities:
Receipts from interfund services provided$6,456$73,560
Payment to suppliers(13,183)(16,659)
Net cash flows from operating activities(6,727)56,901
Cash flows from noncapital financing activities:
Transfer in250,00059,000
Cash flows from capital and related
financing activities:
Acquisition of capital assets(72,617)(196,585)
Cash flows from investing activities:
Investment income(4,219)4,197
Net increase in cash and cash equivalents166,437(76,487)
Cash and cash equivalents - January 1376,841453,328
Cash and cash equivalents - December 31$543,278$376,841
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) ($155,457)($75,052)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation147,354136,123
Changes in assets and liabilities:
Increase (decrease) in payables1,376(4,170)
Total adjustments148,730131,953
Net cash provided by operating activities($6,727)$56,901
CITY OF
FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY
COMPONENT UNIT
CITY OF FRIDLEY, MINNESOTA
BALANCE SHEET - GOVERNMENTAL FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
December 31, 2013
GeneralHousing LoanLake Pointe
Assets
Cash and investments$4,441,177$3,030,413$191,833
Receivables:
Accounts50,543 - -
Delinquent taxes8,093 - 1,322
Mortgage:
Deferred - 955,065 -
Allowance for uncollectible accounts - (55,164) -
Interest58,633 - -
Due from other funds7,005,931 - -
Prepaid expenses - 750 -
Land held for resale2,348,370 - 69,120
Total assets$13,912,747$3,931,064$262,275
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$2,986$3,101$314,416
Due to primary government125,431 - -
Due to other funds - - 325,303
Total liabilities128,4173,101639,719
Deferred inflows of resources:
Unavailable revenue2,356,463 - 70,442
Total deferred inflows of resources2,356,463 - 70,442
Fund balance (deficit):
Nonspendable - 900,651 -
-
Restricted - -
Committed - 3,027,312 -
Unassigned11,427,867 - (447,886)
Total fund balance (deficit)11,427,8673,927,963(447,886)
Total liabilities, deferred inflows
of resources, and fund balance$13,912,747$3,931,064$262,275
Exhibit G-1
Housing#20A-BAEOther
GatewayReplacementGatewayHazardousGovernmental
OnanWest#1NorthEast #20 BAESubsFundsTotals Governmental Funds
20132012
$784,992$38,903$745,373$262,126$780$785$400,247$9,896,629$10,036,934
- - - - - - - 50,54372,020
5,214 - - - - - 2,32416,95319,401
- - - - - - - 955,0651,109,620
- - - - - - - (55,164)(57,959)
- - - - - - - 58,63371,390
- - - - - - - 7,005,9314,508,825
- - - - - - - 7503,914
255,330135,126379,889360,090 - - - 3,547,9253,378,555
$1,045,536$174,029$1,125,262$622,216$780$785$402,571$21,477,265$19,142,700
$ - $ - $1,235$4,665$ - $1,984$45,446$373,833$375,985
- - - 125,43162,255
- 670,109600,0004,388,17333,000284,933704,4137,005,9314,508,825
0670,109601,2354,392,83833,000286,917749,8597,505,1954,947,065
260,544135,126379,889360,090 - - 2,3243,564,8783,397,956
260,544135,126379,889360,090 - - 2,3243,564,8783,397,956
- - - 900,6511,055,575
784,992 - 144,138 - - - 335,8011,264,9312,042,018
- - - 3,027,3122,853,960
- (631,206) - (4,130,712)(32,220)(286,132)(685,413)5,214,2984,846,126
784,992(631,206)144,138(4,130,712)(32,220)(286,132)(349,612)10,407,19210,797,679
$1,045,536$174,029$1,125,262$622,216$780$785$402,571$21,477,265$19,142,700
Fund balance reported above$10,407,192$10,797,679
Amounts reported for governmental activities in the statement of net
position are different because:
Capital assets used in governmental activities are not financial
resources, and therefore, are not reported in the funds2,023,5112,023,511
Other long-term assets are not available to pay for current-period
expenditures and, therefore, reported as unavailable revenue3,564,8783,397,956
Net position of governmental activities$15,995,581$16,219,146
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
For The Year Ended December 31, 2013
With comparative totals for the year ended December 31, 2012
GeneralHousing LoanLake PointeOnanGateway West
Revenues:
Tax increment$ - $ - $419,487$281,084$9,220
Property taxes373,036 - - - -
Investment income:
Interest and dividends18,91913,7941,7468,440291
Net change in the fair value of investments(14,003)(16,077)(1,037)(6,742)(519)
Mortgage interest earnings - 40,214 - - -
Rental9,603 - - - -
Sale of real estate43,914 - - - 90,980
Miscellaneous99,86038,971 - - -
Total revenues531,32976,902420,196282,78299,972
Expenditures:
Personal services122,629 - - - -
Supplies and other charges310,85558,47465,44529,1903,088
Capital outlay - - - 562,040 -
Developer assistance - - 357,202 - -
Total expenditures433,48458,474422,647591,2303,088
Excess (deficiency) of revenues over
(under) expenditures97,84518,428(2,451)(308,448)96,884
Other financing sources:
Transfer in2,938,173 - - - 500,000
Transfer out - - - (500,000) -
Total other financing sources (uses)2,938,17300(500,000)500,000
Net change in fund balance3,036,01818,428(2,451)(808,448)596,884
Fund balance (deficit) - January 18,391,8493,909,535(445,435)1,593,440(1,228,090)
Fund balance (deficit) - December 31$11,427,867$3,927,963($447,886)$784,992($631,206)
Exhibit G-2
Housing#20A-BAEOther
ReplacementGatewayHazardousGovernmentalIntra-Activity
#1NorthEast #20 BAESubsFundsElminations
Totals Governmental Funds
20132012
$17,002$ - $ - $ - $271,448$ - $998,241$1,488,534
- - 373,036428,756
-
3,609(1,574) - - 1,339 - 46,56447,332
(3,631)(7,780) - - (2,075) - (51,864)13,536
- - 40,21445,021
- - 9,6039,600
143,843 - - - - - 278,737432,822
821246 - - - - 139,898200,715
161,644(9,108)00270,71201,834,4292,666,316
- - 122,629118,337
25,68637,14132,2205,19979,086 - 646,384556,403
164,077 - - - - - 726,117114,932
- - - 280,93391,651 - 729,786748,154
189,76337,14132,220286,132170,73702,224,9161,537,826
(28,119)(46,249)(32,220)(286,132)99,9750(390,487)1,128,490
- - - - - (3,438,173) - -
- (2,938,173) - - - 3,438,173 - -
0(2,938,173)000000
(28,119)(2,984,422)(32,220)(286,132)99,975 - (390,487)1,128,490
172,257(1,146,290) - - (449,587) - 10,797,6799,669,189
$144,138($4,130,712)($32,220)($286,132)($349,612)$0$10,407,192$10,797,679
Amounts reported for governmental activities in the statement of activities
(Exhibit A-2) are different because:
Net changes in fund balances - total above($390,487)$1,128,490
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.166,922(233,103)
Changes in net position of governmental activities (Exhibit A-2)($223,565)$895,387
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
December 31, 2013
With comparative totals for December 31, 2012
GatewayUniversity / McGlynnSatellite Lane
EastOsborneBakeriesApts.
Assets
Cash and investments$12,106$191,830$72,450$71,521
Delinquent taxes receivable - 194 - 1,497
Land held for resale - - - -
Total assets$12,106$192,024$72,450$73,018
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$ - $ - $ - $ -
Due to other funds661,653 - - -
Total liabilities661,653 0 0 0
Deferred inflows of resources:
Unavailable revenue - 194 - 1,497
Total deferred inflows of resources0 194 0 1,497
Fund balance (deficit):
Restricted - 191,83072,45071,521
Unassigned(649,547) - - -
Total fund balance (deficit)(649,547)191,830 72,450 71,521
Total liabilities, deferred inflows
of resources, and fund balance$12,106$192,024$72,450$73,018
Exhibit G-3
57th Avenue #22
Total Nonmajor Capital
RedevelopmentTIF #19Northstar
Project Funds
20132012
$10,081$42,035$224$400,247$335,363
109524 - 2,3241,558
- - - - -
$10,190$42,559$224$402,571$336,921
$ - $45,381$65$45,446$51,537
38,760 - 4,000704,413733,413
38,760 45,381 4,065 749,859 784,950
109524 - 2,3241,558
109 524 0 2,324 1,558
- - - 335,801276,321
(28,679)(3,346)(3,841)(685,413)(725,908)
(28,679)(3,346)(3,841)(349,612)(449,587)
$10,190$42,559$224$402,571$336,921
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
For The Year Ended December 31, 2013
With comparative totals for the year ended December 31, 2012
North Area /
Center CityUniv. Ind. ParkGateway East
Revenues:
Tax increment$ - $ - $26,663
Investment income:
Interest and dividends - - 58
Net change in the fair value of investments - - -
Sale of real estate - - -
Miscellaneous - - -
Total revenues0026,721
Expenditures:
Supplies and other charges12,89733,7102,709
Developer assistance -
Capital outlay -
Total expenditures12,89733,7102,709
Excess (deficiency) of
revenues over (under) expenditures(12,897)(33,710)24,012
Other financing sources:
Transfers out - - -
Net change in fund balance(12,897)(33,710)24,012
Fund balance (deficit) - January 112,89733,710(673,559)
Fund balance (deficit) - December 31$0$0($649,547)
Exhibit G-4
University / McGlynnSatellite Lane 57th Avenue #22
Totals Nonmajor Capital
OsborneBakeriesApts.RedevelopmentNorthstar
TIF #19Project Funds
20132012
$50,814$30,166$39,162$22,549$102,094$ - $271,448$388,538
69817517558175 - 1,339533
(1,037)(519)(519) - - - (2,075)1,683
- - - - - - - -
- - - - - - - -
50,47529,82238,81822,607102,2690270,712390,754
5,2563,0664,7062,33210,5693,84179,08638,889
- - - - 91,651 - 91,651103,132
- - - - - - - -
5,2563,0664,7062,332102,2203,841170,737142,021
45,21926,75634,11220,27549(3,841)99,975248,733
- - - - - - - (262,907)
45,21926,75634,11220,27549(3,841)99,975(14,174)
146,61145,69437,409(48,954)(3,395) - (449,587)(435,413)
$191,830$72,450$71,521($28,679)($3,346)($3,841)($349,612)($449,587)
CITY OF
FRIDLEY
AGENCY FUNDS
Agency Funds account for assets held by a governmental unit in a trustee
capacity or as an agent for individuals, private organizations, other governmental
units, and/or other funds.
Exhibit H-1
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2013
Totals Agency Funds
Six Cities
Hotel/Motel TaxWatershed
20132012
Assets:
Cash and investments$ - $ - $ - $24,631
Receivables:
Accounts3,099 - 3,0992,766
Taxes:
Delinquent - - - 61
Total assets$3,099$0$3,099$27,458
Liabilities:
Due to other governments$3,099$0$3,099$27,458
Exhibit H-2
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2013
BalanceBalance
January 1,December 31,
2013AdditionsDeletions2013
Six Cities Watershed
Assets:
Cash and investments$22,189$ - $22,189$ -
Receivables:
Taxes:
Delinquent6181142 -
Total assets$22,250$81$22,331$0
Liabilities:
Due to other governments$22,250$67$22,317$ -
Hotel/Motel Tax
Assets:
Cash and investments$2,442$46,423$48,865$ -
Receivables:
Accounts2,766333 - 3,099
Total assets$5,208$46,756$48,865$3,099
Liabilities:
Due to other governments$5,208$51,467$53,576$3,099
Totals
Assets:
Cash and investments$24,631$46,423$71,054$ -
Receivables:
Accounts2,766333 - 3,099
Taxes:
Delinquent6181142 -
Total assets$27,458$46,837$71,196$3,099
Liabilities:
Due to other governments$27,458$51,534$75,893$3,099
CITY OF
FRIDLEY
Statistical Section (Unaudited)
This part of the City of Fridley's statistical's comprehensive annual financial report
presents detailed information as a context for understanding what the information in the
financial statements, note disclosures, and required supplementary information says
about the City's overall financial health.
ContentsPage
Financial Trends152
These schedules contain trend information to help the reader understand how the
City's financial performance and well-being have changed over time.
Revenue Capacity162
These schedules contain information to help the reader assess the factors
affecting the City's ability to generate its property tax.
Debt Capacity168
These schedules present information to help the reader assess the affordability
of the City's current levels of outstanding debt and the City's ability to issue
additional debt in the future.
Demographic and Economic Information174
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take
place and to help make comparisons over time and with other governments.
Operating Information178
These schedules contain information about the City's operations and resources
to help the reader understand how the City's financial information relates to the
services the City provides and the activities it performs.
Sources:
Unless otherwise noted, the information in these schedules is derived
from the comprehensive annual financial reports for the relevant year. The City
implemented Statement 34 in 2003; the City has chosen to provide information for that
year forward. Ultimately, these schedules will contain information for the last ten years.
CITY OF FRIDLEY, MINNESOTA
NET POSITION BY COMPONENT
Last ten fiscal years
(Accrual Basis of Accounting)
200420052006
Governmental activities:
Net investment in capital assets$18,305,647$18,458,113$18,635,605
Restricted 1,664,772 1,540,531 1,591,936
Unrestricted 11,735,908 13,331,115 15,140,831
Total governmental activities net position$31,706,327$33,329,759$35,368,372
Business-type activities:
Net investment in capital assets$14,528,247$16,454,772$17,354,621
Restricted - - -
Unrestricted11,814,6499,258,9847,955,426
Total business-type activities net position$26,342,896$25,713,756$25,310,047
Primary government:
Net investment in capital assets$32,833,894$34,912,885$35,990,226
Restricted 1,664,772 1,540,531 1,591,936
Unrestricted 23,550,557 22,590,099 23,096,257
Total primary government net position$58,049,223$59,043,515$60,678,419
Table 1
2007200820092010201120122013
$18,245,265$17,490,936$16,141,958$15,546,219$14,554,639$14,139,656$13,842,497
2,193,4101,711,255 2,790,220 3,401,776 3,392,382 3,294,952 3,050,204
18,845,00617,244,490 20,276,252 21,293,470 23,020,467 $24,238,798$24,551,730
$37,201,010$38,529,352$39,208,430$40,241,465$40,967,488$41,673,406$41,444,431
$16,951,085$16,381,443$15,036,932$15,105,503$14,342,934$13,560,980$12,910,117
- - - - - - -
7,722,4587,869,1858,308,0787,647,8487,387,6348,235,9488,417,085
$24,673,543$24,250,628$23,345,010$22,753,351$21,730,568$21,796,928$21,327,202
$35,196,350$33,872,379$31,178,890$30,651,722$28,897,573$27,700,636$26,752,614
2,193,4101,711,255 2,790,220 3,401,776 3,392,382 3,294,952 3,050,204
26,714,19124,966,948 28,584,330 28,941,318 30,408,101 32,474,746 32,968,815
$61,874,553$62,779,980$62,553,440$62,994,816$62,698,056$63,470,334$62,771,633
CITY OF FRIDLEY, MINNESOTA
CHANGES IN NET POSITION
Last ten fiscal years
(Accrual basis of accounting)
200420052006
Expenses
Governmental activities:
General government$3,513,065$4,448,175$4,177,829
Public safety5,468,0145,514,3306,023,335
Public works3,612,3184,105,8603,868,517
Community Development602,335793,8361,118,661
Parks and recreation 993,570767,5991,147,966
Interest on long-term debt544,478443,533397,036
Total governmental activities expenses14,733,78016,073,33316,733,344
Business-type activities:
Liquor5,005,1984,919,4584,793,419
Water2,086,5132,070,0322,138,371
Sanitary sewer3,256,3713,570,1133,629,361
Storm water334,906320,596331,039
Total business-type activities expenses10,682,98810,880,19910,892,190
Total primary government expenses$25,416,768$26,953,532$27,625,534
Program revenues
Governmental activities:
Charges for services:
General government$1,032,130$1,263,265 1,443,361
Public safety$539,334$569,993 609,721
Public works$286,165$189,766 197,968
Community Development$441,649$599,870 470,733
Parks and recreation $369,736$331,298 346,382
Operating grants and contributions1,009,8611,121,7261,304,510
Capital grants and contributions882,2921,657,1061,919,108
Total governmental activities program revenues4,561,1675,733,0246,291,783
Business-type activities:
Charges for services:
Liquor5,376,4285,283,2295,136,029
Water1,763,6231,771,8461,929,573
Sanitary sewer3,248,9523,299,9573,345,017
Storm water381,360384,860391,032
Operating grants and contributions208600514
Capital grants and contributions - - -
Total business-type activities program revenues10,770,57110,740,49210,802,165
Total primary government program revenues$15,331,738$16,473,516$17,093,948
Table 2
Page 1 of 2
2007200820092010201120122013
$4,074,480$3,646,436$3,324,698$3,272,470$3,321,402$3,155,983$3,434,479
6,260,8066,774,6106,847,5716,756,6986,720,6416,999,5547,101,331
4,208,7654,771,7485,065,1785,916,7765,023,0805,420,2715,928,331
863,8501,479,4551,036,549966,909973,198880,414935,716
1,312,5021,303,0631,605,3061,521,1061,387,1331,355,5711,456,841
416,850377,884342,555268,892263,075232,318218,610
17,137,25318,353,19618,221,85718,702,85117,688,52918,044,11119,075,308
4,920,5114,937,7764,654,8114,542,1804,568,2824,354,9094,148,447
2,279,0342,378,1012,423,1292,438,3992,688,8462,647,1762,815,588
3,798,0534,065,8994,350,5764,617,9914,750,4674,653,4344,974,525
381,944373,989399,349421,630785,861602,923587,036
11,379,54211,755,76511,827,86512,020,20012,793,45612,258,44212,525,596
$28,516,795$30,108,961$30,049,722$30,723,051$30,481,985$30,302,553$31,600,904
$1,468,699$1,600,769$1,733,160$1,755,123$1,886,783$1,979,737$2,025,108
709,209759,892690,115717,003796,308862,584864,435
49,39964,04223,03466,938378,14228,14499,289
656,674510,908523,508501,897570,685554,129582,280
381,432376,621347,044364,093325,682369,899326,067
930,593818,805930,765939,1231,148,3151,030,8871,095,724
834,7482,078,5721,476,9891,952,9341,374,6511,564,1461,747,303
5,030,7546,209,6095,724,6156,297,1116,480,5666,389,5266,740,206
5,252,9105,275,4674,973,0004,855,8804,893,4364,705,5234,308,791
1,990,0472,110,6212,419,4002,390,8362,418,2262,773,1012,788,146
3,461,6153,873,8063,784,0004,052,8004,245,6544,549,2544,572,798
392,016404,562457,862421,815457,083571,707613,818
- - - - - - 50,000
- - - - - - -
11,096,58811,664,45611,634,26211,721,33112,014,39912,599,58512,333,553
$16,127,342$17,874,065$17,358,877$18,018,442$18,494,965$18,989,111$19,073,759
CITY OF FRIDLEY, MINNESOTA
CHANGES IN NET POSITION
Last ten fiscal years
(Accrual basis of accounting)
200320042005
Net (expense) revenue:
Governmental activities($10,172,613)($10,340,309)($10,441,561)
Business-type activities87,583(139,707)(90,025)
Total primary government net (expense) revenue($10,085,030)($10,480,016)($10,531,586)
General revenues and other changes in net position
Governmental activities:
General property taxes$5,816,656$7,428,226$8,253,653
Grants not restricted to programs3,436,4733,365,7392,623,407
Investment earnings413,743511,464998,154
Gain on sale of property6804343,357
Other - -1,603
Transfers - -600,000
Total governmental activities9,667,55211,305,86312,480,174
Business-type activities:
Investment earnings146,248168,445281,316
Gain on Sale of Property - -5,000
Other - - -
Transfers - -(600,000)
Total business-type activities146,248168,445(313,684)
$9,813,800$11,474,308$12,166,490
Total primary government
Change in net position:
Governmental activities($505,061)$965,554$2,038,613
Business-type activities233,83128,738(403,709)
Total primary governmen($271,230)$994,292$1,634,904
t
Table 2
Page 2 of 2
2007200820092010201120122013
($12,106,499)($12,143,587)($12,497,242)($12,405,740)($11,207,963)($11,654,585)($12,335,102)
(282,954)(91,309)(193,603)(298,869)(779,057)341,143(192,043)
($12,389,453)($12,234,896)($12,690,845)($12,704,609)($11,987,020)($11,313,442)($12,527,145)
$8,986,924$9,068,718$9,175,888$10,141,119$10,126,395$10,654,542$11,003,455
3,152,4213,240,0813,390,6332,718,9791,095,4701,030,1231,033,814
1,111,116687,66596,817208,565347,184269,240(216,821)
59,438(24,802)12,98220,11214,93756,59835,680
29,238267 - - - -
600,000500,000500,000350,000350,000350,000250,000
13,939,13713,471,92913,176,32013,438,77511,933,98612,360,50312,106,128
245,172168,39425,90857,098106,27465,537(52,346)
1,278 - (237,923)112 - 9,680 -
- - - - - - 24,663
(600,000)(500,000)(500,000)(350,000)(350,000)(350,000)(250,000)
(353,550)(331,606)(712,015)(292,790)(243,726)(274,783)(277,683)
$13,585,587$13,140,323$12,464,305$13,145,985$11,690,260$12,085,720$11,828,445
$1,832,638$1,328,342$679,078$1,033,035$726,023$705,918($228,974)
(636,504)(422,915)(905,618)(591,659)(1,022,783)66,360(469,726)
$1,196,134$905,427($226,540)$441,376($296,760)$772,278($698,700)
Table 3
Page 1 of 2
CITY OF FRIDLEY, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
(1)
Last ten fiscal years
(Modified accrual basis of accounting)
2004200520062007
General Fund:
Reserved$83,822$81,662$77,476$65,528
Unreserved:
General fund4,080,0124,020,2853,863,0235,206,778
Designated for employee benefits - - - -
Designated for contingencies - - - -
Undesignated - - - -
Nonspendable - - - -
Restricted - - - -
Unassigned - - - -
Total general fund$4,163,834$4,101,947$3,940,499$5,272,306
All other governmental funds:
Reserved for:
Long-term receivables$541,244$480,123$415,908$348,441
Public safety1,155,225688,214203,13120,726
Debt service509,547389,197721,8661,214,519
Unreserved, reported in:
Special revenue funds541,7481,098,9951,106,6231,189,140
Capital projects funds7,001,3906,881,5236,963,5245,223,563
Debt service5,522,6475,976,8885,991,1026,201,350
Restricted - - - -
Committed - - - -
Assigned - - - -
Unassigned - - - -
Total all other governmental funds$15,271,801$15,514,940$15,402,154$14,197,739
(1)
The City implemented GASB Statement No. 31 for the fiscal year ended December 31, 2003.
Therefore, information for years prior to 2003 is not available.
In 2011, the City adopted the provisions of Gorenmental Accounting Standards Board Statement
No. 54, Fund Balance Reporting and Governmental Fund Type Definitions.
Table 3
Page 2 of 2
200820092010201120122013
$48,561$58,928$59,755$ - $ - $ -
4,538,2244,600,9885,725,464 - - -
- - - - - -
- - - - - -
- - - - - -
- - - 65,27166,15250,366
- - - - 20,81040,012
- - - 6,708,2847,582,3607,997,036
$4,586,785$4,659,916$5,785,219$6,773,555$7,669,322$8,087,414
$277,560$ - $ - $ - $ - $ -
25,590 - - - - -
1,564,2171,734,6242,066,732 - - -
1,258,9261,329,6471,407,400 - - -
5,944,5565,056,1485,796,931 - - -
5,976,5115,801,6865,983,425 - - -
- - - 2,529,8733,093,3022,233,664
- - - 2,209,0672,328,5832,124,944
- - - 11,108,00311,783,59611,618,835
- - - (98,164)(97,712)(98,566)
$15,047,360$13,922,105$15,254,488$15,748,779$17,107,769$15,878,877
CITY OF FRIDLEY, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
200420052006
Revenues:
General property taxes$5,809,631$7,397,381$8,220,943
Special assessments300,389550,909691,764
Licenses and permits785,582865,848876,903
Intergovernmental3,207,4822,767,7242,663,909
Charges for services1,533,2531,736,1811,855,177
Fines and forfeits176,878164,104261,535
Earnings on investments325,307411,333828,877
Interest on loan29,25326,30823,213
Other2,085,0692,625,8992,154,656
Total revenues 14,252,844 16,545,687 17,576,977
Expenditures:
Current:
General government3,155,6174,244,4963,567,503
Public safety5,156,5295,204,5515,821,523
Public works2,608,3162,940,8692,944,911
Community development593,393671,1731,113,543
Parks and recreation960,723737,0941,118,392
Debt service:
Principal5,155,0006,095,0001,555,000
Interest 561,045422,366330,431
Bond issuance costs32,96835,99731,742
Capital outlay869,7703,112,7004,452,500
Contingency -907 -
Total expenditures 19,093,361 23,465,153 20,935,545
Revenues over (under) expenditures (4,840,517) (6,919,466) (3,358,568)
Other financing sources (uses):
Refunding bond issues3,920,000 - -
Bonds issued -6,450,0002,505,000
Premium/(discount) on bonds issue(10,992)(7,160)(30,720)
Proceeds from sale of capital assets - -10,054
Transfers in558,609657,8784,966,400
Transfers out - -(4,366,400)
Total other financing sources (uses) 4,467,617 7,100,718 3,084,334
Net change in fund balance($372,900)$181,252($274,234)
Debt service as a percentage of
noncapital expenditures31.5%32.2%11.6%
Debt service as percentage of total expenditures 30.1%27.9%9.2%
Table 4
2007200820092010201120122013
$8,927,963$9,052,719$9,072,267$10,178,369$10,113,120$10,732,129$11,024,785
635,817589,790665,038622,100672,929763,920834,120
1,080,787946,285965,363973,9851,085,1001,104,5041,123,635
1,872,6432,742,9813,140,5533,310,6312,853,1712,649,2072,643,728
1,830,4162,015,7962,021,7082,080,3492,206,7642,353,8882,545,908
298,359316,646255,014240,880258,372255,622218,194
920,850560,62974,840176,257297,290236,226(185,473)
19,96216,5476,939 - - - -
2,288,3092,220,2762,043,2521,992,971325,284322,354295,409
18,461,66917,875,106 18,244,974 19,575,542 17,812,030 18,417,850 18,500,306
3,893,9523,338,2283,086,4413,010,8353,165,1113,503,3263,279,657
5,999,5576,323,9106,446,7146,329,3546,284,6586,422,6466,794,524
3,025,1573,406,4683,376,6413,111,9183,061,1003,047,3003,530,939
861,8721,189,033895,057967,487979,042772,070817,895
1,194,2901,366,1541,301,1401,292,7831,195,4101,252,0891,305,158
1,825,0002,075,0002,215,0002,445,000800,000940,000980,000
359,010379,340366,500287,961271,969232,318227,326
42,9869,1391,80145,0942,79947,016 -
3,114,2032,684,9382,144,6491,812,087964,4101,639,7732,536,286
- - - - - -
20,772,21020,316,027 19,833,943 19,302,519 16,724,499 17,856,538 19,471,785
(2,310,541)(2,440,921) (1,588,969) 273,023 1,087,531 561,312 (971,479)
- - - - - - -
1,910,0001,915,000 - 1,765,000 - 1,280,000 -
- - - 53,163 - - -
58,31313,10136,84516,50015,09663,44535,679
600,0003,926,5632,500,4211,235,467380,000350,000250,000
- (3,380,023)(2,000,421)(885,467) - - (125,000)
2,474,6412,568,313 536,845 2,184,663 395,096 1,693,445 160,679
$127,392$164,100($1,052,124)$2,457,686$1,482,627$2,254,757($810,800)
12.9%13.6%14.6%15.9%6.8%7.0%6.8%
11.0%11.9%13.0%14.4%6.4%6.8%6.2%
CITY OF FRIDLEY, MINNESOTA
TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Commercial/
FiscalResidentialIndustrialPublicAll
YearPropertyPropertyUtilityOther
2004$11,163,343$12,740,016$44,539$3,388,828
200512,619,94812,517,53246,5633,762,125
200614,320,78613,166,65746,8613,833,436
200715,074,00814,500,00846,9534,236,896
200815,334,12615,809,59442,7384,370,011
200914,716,96716,788,86038,6804,455,969
201013,494,27916,457,27537,3084,523,767
201112,175,45215,182,22741,2364,396,579
1
2012
10,246,61414,710,92640,3304,271,859
1
2013
8,713,05313,207,35145,3064,286,829
Source: Continuing Disclosure Document
1
After 2011 the State implemented the Homestead Market Value Exclusion program for residential properties. Beginning
in 2012 the HMVE program excludes a portion of the market value prior to the tax calculation.
Table 5
Less:
TotalFiscalAdjustedTotalEstimatedTax Capacity
TaxDisparityTax CapacityDirect TaxMarketas a Percent
CapacityContributionValueRateValueof EMV
$27,336,726$4,292,061$23,044,66530.248%$2,149,055,100118.62%
28,946,1684,624,09124,322,07733.565%2,278,619,300119.01%
31,367,7404,115,59527,252,14531.941%2,469,670,100115.10%
33,857,8654,587,79428,341,51431.349%2,616,727,300119.46%
35,556,4695,221,35530,303,83230.324%2,701,388,800117.33%
36,000,4765,757,07331,758,13328.640%2,698,943,700113.36%
34,512,6296,128,31830,862,68232.258%2,561,173,300111.83%
31,795,4946,212,40628,088,60536.986%2,352,567,900113.20%
29,269,7295,629,37426,491,81439.615%2,278,659,000110.49%
26,252,5395,373,20223,724,02647.362%2,057,500,500110.66%
CITY OF FRIDLEY, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES
Last ten fiscal years
SchoolSchoolSchool
FiscalDistrictDistrictDistrict
YearCityNo. 11No. 13No. 14
200430.248%21.050%22.833%22.683%
200533.565%21.492%19.993%21.606%
200631.941%20.046%19.571%20.830%
200731.349%19.353%17.183%24.175%
200830.324%16.983%15.942%26.033%
200928.640%18.263%23.411%31.172%
201032.258%19.939%24.398%38.795%
201136.486%24.023%18.596%40.631%
201239.615%23.325%24.024%43.862%
201347.362%26.801%27.449%50.112%
Source: Continuing Disclosure Document
Notes:
(1)
Vocational/Technical District #916 is included in District No. 16.
(2)
Six Cities Watershed District is included with School District No. 11.
(3)
Rice Creek Watershed District is included with School District No. 13, 14 and 16.
(4)
Stonybrook Creek Subwatershed is included with School District No. 11 and 14.
Table 6
SchoolTotalSchoolSchoolSchoolSchool
DistrictSpecialDistrictDistrictDistrictDistrict
(1)(2, 4)(3)(3, 4)(1, 3)
No. 16No. 11No. 13No. 14No. 16
CountyDistricts
21.421%35.221%7.623%95.446%97.758%97.525%96.346%
16.118%33.080%8.085%96.945%96.329%97.942%92.454%
17.437%32.096%7.411%92.136%92.813%94.072%90.679%
25.779%30.696%6.829%88.666%87.770%94.762%96.366%
26.213%31.078%7.803%86.608%87.135%97.226%97.406%
27.155%32.078%8.783%86.183%92.840%100.601%96.584%
31.654%35.189%9.089%94.964%100.897%115.294%108.153%
33.959%39.884%10.533%113.226%109.392%131.427%124.755%
39.443%41.146%10.176%111.953%114.961%134.799%130.380%
44.440%44.411%14.189%128.022%129.850%152.513%146.841%
CITY OF
FRIDLEY
Table 7
CITY OF FRIDLEY, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS
Current year and nine years ago
20132004
Percentage Percentage
Taxableof Total CityTaxableof Total City
CapacityCapacityCapacityCapacity
TaxpayerValueRankValueValueRankValue
Medtronic, Inc.$1,792,55816.83%$1,478,52815.41%
Target Corporation395,496 2 1.51%686,130 2 2.51%
Shamrock Investments531,876 3 2.03%510,152 3 1.87%
Cummins Power (Onan)387,262 41.48%334,638 4 1.22%
Retail Trust IV (Wal-Mart/Sam's)336,460 5 1.28%309,356 5 1.13%
BAE283,118 61.08%N/A10 0.00%
Maurice Fillister (Georgetown)244,066 7 0.93%242,267 6 0.89%
University Avenue Associates238,944 8 0.91%235,000 7 0.86%
Lifetime Fitness196,832 9 0.75%234,474 8 0.86%
Riverpointe Apartments187,570 100.71%182,582 9 0.67%
Total$4,594,18217.51%$4,213,12715.42%
Total All Property$26,252,539$27,336,726
Source: City Assessor
Table 8
CITY OF FRIDLEY, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last ten fiscal years
FiscalTaxesCollectionsCollected Within The
YearLeviedinFiscal Year of the LevyTotal Collections to Date
EndedFor ThePercentageSubsequentPercentage
1
Years
Dec. 31Fiscal YearAmountof LevyAmountof Levy
2004$5,958,417$5,784,43897.08%$173,979$5,958,417100.00%
20057,543,3827,394,30498.02%149,0787,543,382100.00%
20068,278,2558,130,76798.22%145,9318,276,69899.98%
20078,772,1498,614,53798.20%154,4118,768,94899.96%
20089,188,5928,958,98697.50%224,2419,183,22799.94%
20099,110,8478,856,38497.21%247,6569,104,04099.93%
20109,707,0759,503,50997.90%191,8909,695,39999.88%
201110,014,0719,897,61098.84%97,0309,994,64099.81%
201210,703,73910,699,02599.96%(45,594)10,653,43199.53%
201311,252,48111,247,94399.96%N/A11,247,94399.96%
1
Includes repayment of property taxes abatements
Source: City Finance Department
Table 9
CITY OF FRIDLEY, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last ten fiscal years
Governmental Activities
Percentage
of EstimatedTotalTotal Percentage
FiscalImprovementTax IncrementEquipmentMarket ValuePerBusiness TypePrimaryof PersonalPer
YearBondsBondsCertificatesTotalof PropertyCapitaBondsGovernmentIncome (1)Capita
2004$190,000$9,595,000$ - $9,785,0000.46%356$5,405,000$15,190,0002.20%$356
20051,805,0008,335,000 - 10,140,0000.45%3743,815,00013,955,0002.01%374
20064,310,0006,780,000 - 11,090,0000.45%4163,420,00014,510,0002.06%416
20076,065,0005,110,000 - 11,175,0000.43%4203,015,00014,190,0001.99%420
20087,615,0003,400,000 - 11,015,0000.41%4166,440,00017,455,0002.46%416
20097,080,0001,720,000 - 8,800,0000.33%3335,865,00014,665,0002.13%333
20107,570,000 - 550,0008,120,0000.32%2988,160,00016,280,0002.19%298
20116,770,000 - 550,0007,320,0000.31%2667,625,00014,945,0002.01%266
20125,880,000 - 1,780,0007,660,0000.34%2787,070,00014,730,0001.95%275
20134,955,000 - 1,725,0006,680,0000.32%2406,415,00013,095,0001.69%240
(1) Demographic information may be found on Table 14
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements
Table 10
CITY OF FRIDLEY, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2013
Estimated
EstimatedShare of
DebtPercentageOverlapping
1
Applicable
Governmental UnitOutstandingDebt
Debt repaid with property taxes:
Independent School District No. 11$87,651,5401.60%$1,402,425
Independent School District No. 1318,795,000 31.46%5,912,907
Independent School District No. 1438,450,000 100.00%38,450,000
Independent School District No. 16112,225,000 36.80%41,298,800
Metro Council1,396,829,257 1.19%16,622,268
Anoka County156,865,658 18.04%28,298,565
Vocational/Technical District No. 9163,950,000 2.21%87,295
Subtotal - overlapping debt132,072,260
City of Fridley - Direct debt$6,680,000100.00%6,680,000
Total direct and overlapping debt$138,752,260
Sources: Continuing Disclosure Document
1
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents
and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term
debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not
imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
Table 11
CITY OF FRIDLEY, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
Last ten fiscal years
Market Value$2,057,500,500
Debt Limit 3% of Market Value$61,725,015
Amount of Debt Applicable to Debt Limit:
Total Debt$13,095,000
Deductions:
Improvement Bonds4,955,000
Revenue Bonds6,415,00011,370,000
Total Amount of Debt Applicable to Debt Limit1,725,000
Legal Debt Margin$60,000,015
Legal Debt Margin Calculation for the last 10 Fiscal Years
Net DebtLegalAmount of Debt
FiscalDebtApplicable toDebtApplicable to
YearLimitLimitMarginDebt Limit
2004$42,589,016$ - $38,755,9120.00%
200545,168,942 - 42,589,0160.00%
200649,393,402 - 45,168,9420.00%
200752,334,546 - 49,393,4020.00%
200854,027,776 - 52,334,5460.00%
200980,968,311 - 54,027,7760.00%
201076,835,199550,00076,285,1990.72%
201170,577,037550,00070,027,0370.78%
201268,359,7701,780,00066,579,7702.60%
201361,725,0151,725,00060,000,0152.79%
Note: State statutes limit the amount of general obligation debt a Minnesota City may issue to 3% of total
estimated market value; prior to 2008, the State Statute debt limit was 2%.
CITY OF FRIDLEY, MINNESOTA
PLEDGED-REVENUE COVERAGE
Last ten fiscal years
Improvement BondsEquipment Certificates
SpecialProperty
Debt ServiceDebt Service
FiscalAssessmentTax
YearCollectionsPrincipalInterestCoverageCollectionsPrincipalInterestCoverage
2004$273,813$90,000$10,3582.73$ - $ - $ - -
2005542,548190,0005,3402.78 - - - -
2006671,204 - 67,4669.95 - - - -
2007602,988155,000160,4231.91 - - - -
2008561,221365,000230,3250.94 - - - -
2009658,406535,000270,0050.82 - - - -
2010555,997725,000252,8990.57 - - - -
2011504,053800,000258,1350.4869,881 - 13,8345.05
2012659,666890,000229,5030.59 70,66850,00013,4501.11
2013376,026925,000198,4130.33 233,74955,00025,7632.89
Table 12
Utility Revenue BondsTax Increment Bonds
Utility Less Net Tax
Debt ServiceDebt Service
ServiceOperatingAvaliableIncrement
RevenuesExpensesRevenuePrincipalInterestCoverageCollectionsPrincipalInterestCoverage
$5,371,662$5,430,082($58,420)$390,000$334,960-0.08$3,078,426$5,065,000$546,9100.55
5,435,3615,821,541(386,180)1,590,000139,200-0.223,224,2045,905,000417,0260.51
5,648,7205,977,607(328,887)395,000121,164-0.642,649,0201,555,000262,9651.46
5,832,9046,350,572(517,668)305,000108,351-1.253,586,0971,670,000199,4881.92
6,379,9846,631,304(251,320)300,000149,481-0.563,329,2891,710,000149,0151.79
6,611,6116,951,906(340,295)575,000221,449-0.432,016,5801,680,00096,4951.14
6,855,4417,236,513(381,072)515,000241,508-0.501,742,8161,720,00035,0630.99
7,118,1547,952,911(834,757)535,000272,264-1.0369,881 - 13,8345.05
7,864,4067,648,478215,928555,000255,0540.27 - - - -
7,961,7386,839,8521,121,886655,000235,4741.26 - - - -
Table 13
CITY OF FRIDLEY, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last ten fiscal years
Total Per Capita
FiscalUnemploymentPersonalPersonal
YearPopulationRateIncomeIncome
200427,4804.8%$691,644,120$25,169
200527,0884.2%695,674,01625,682
200626,6794.2%703,978,77326,387
200726,6034.8%712,747,57626,792
200826,4595.7%708,889,52826,792
200926,4227.9%688,160,99026,045
201027,2087.3%744,138,80027,350
201127,3885.5%742,077,86027,095
201227,7905.6%755,109,88027,172
201327,7854.4%774,145,67027,862
Sources: Metropolitan Council (population), Continuing Disclosure Document (unemployment rate)
Table 14
CITY OF FRIDLEY, MINNESOTA
PRINCIPAL EMPLOYERS
Current year and nine years ago
20132004
Percentage Percentage
of Total Cityof Total City
EmployerEmployeesRankEmploymentEmployeesRankEmployment
Medtronic, Inc.2,693111.99%2,500110.60%
1,51026.72%45.93%
Unity Medical Center1,400
Cummins Power (Onan)1,32535.90%1,72737.32%
Target75843.37%60052.54%
ISD #14 (Fridley Schools)52552.34%
50062.23%62.12%
Minco Products500
BAE Systems37571.67%1,80027.63%
Wal-Mart28881.28%262101.11%
Kurt Manufacturing25091.11%35071.48%
Lofthouse Bakery185100.82%
17591.27%
Park Construction300
Parsons Electric13030081.27%
Total8,71437.44%9,73941.28%
Total City Employment22,46123,593
Source: Continuing Disclosure Documents, Minnesota Department of Employment and Economic
Development and telephone survey.
CITY OF FRIDLEY, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last ten fiscal years
Full-Time Equivalent Employees as of December 31,
Function/Program2004200520062007
General government:
City administration3333
Finance23232322
Human resource2222
Community development88107
Public safety:
Police department46464744
Fire department8899
Public works:
Administration4442
Engineering2224
Mechanic3333
Streets9999
Water5555
Sewer5555
Parks7777
Parks and recreation:
Parks and recreation58118
Total130133140130
Source: City Finance Department
1
Prior to 2013 positions at 32 hours or more per week were counted as 1 full-time equivalent. As of 2013 these figures
represent all permanent staff.
Table 15
Full-Time Equivalent Employees as of December 31,
1
2013
20082009201020112012
333334.0
221919192018.0
222222.0
977778.2
444542434450.6
888887.8
222221.2
444335.0
333334.5
999999.0
555777.0
555557.0
777555.0
888888.0
131127124124126137.3
CITY OF FRIDLEY, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last ten fiscal years
Fiscal Year
Function/Program2004200520062007
Police:
Physical arrests9561,2051,2921,290
Parking violations644884572792
Traffic violations2,1291,7895,1524,035
Fire:
Emergency responses2,4062,7192,5682,804
Fires occurred137107127109
Commercial inspections1,1801,1717844,517
Rental inspections4712962311,176
Refuse collection:
Recyclables collected (tons per day)6.706.696.956.96
Building inspection:
Permits issued:
Residential6247507681,206
Commercial9986115366
Total permit valuation$22,029,469$25,057,537$21,750,596$47,871,624
Other public works:
Street resurfacing (miles)1.24.14.83.7
Recreation
Springbrook Nature Ctr program participants16,35319,85219,59620,245
Water:
Connections8,2888,2328,2358,230
Storage capacity (gallons)6,500,0006,500,0006,500,0006,500,000
Average daily demand (gallons)646,000550,000550,0004,270,000
Peak daily demand (gallons)13,190,00010,000,00010,990,00010,990,000
Sewer:
Connections8,2978,2508,2448,238
Sources: Various City departments.
No operating indicators were available for the Parks, recreation and naturalist function.
Table 16
Fiscal Year
200820092010201120122013
1,3571,3051,3181,1451,1331,344
419382778665283562
4,9942,9342,9292,8602,5902,826
2,8272,8642,7722,9232,9063,003
116141116114121119
1,2391,0218688901,0161,110
7558885977831,1171,145
6.126.475.895.705.815.80
1,4441,5991,9052,2321,6062,191
418386434446386440
$39,105,158$45,564,657$30,441,199$39,902,641$35,763,059$40,697,477
4.14.94.92.23.13.8
20,89420,93723,98724,23124,26623,419
8,2338,2318,2268,2228,2278,230
6,500,0006,500,0006,500,0006,500,0006,500,0006,500,000
4,270,0003,458,4823,014,4253,730,0003,993,2854,227,975
10,800,00019,350,8928,119,2076,622,0008,661,0009,009,000
8,2428,2388,2378,2328,2368,239
Table 17
CITY OF FRIDLEY, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last ten fiscal years
Fiscal Year
Function/Program2004200520062007200820092010201120122013
Police:
Stations1111111111
Squad cars12121212121212121212
Fire stations3333333333
Other public works:
Streets (miles)125.3125.3125.3125.3125.3125.3125.3125.3125.3125.3
Highways (miles)10.310.310.310.310.310.310.310.310.310.3
Streetlights1,0541,0551,0551,0591,0591,0591,0591,0591,0591,059
Traffic signals35353636363636363636
Parks and recreation:
Acreage682682682682682682682682682682
Playgrounds29292929292929292929
Baseball/softball diamonds22222222222222222222
Soccer/football fields2222222222
Community centers1111111111
Water:
Water mains (miles)112.9112.9113.0113.0113.0113.0113.0113.0113.0113.0
Fire hydrants9981,0121,0131,0131,0131,0131,0131,0131,0131,013
Storage capacity (million gallons)6.56.56.56.56.56.56.56.56.56.5
Wastewater:
Sanitary sewers (miles)103.0103.0103.0103.0103.0103.0103.0103.0103.0103.0
Storm sewers (miles)49.350.052.052.052.052.052.052.052.052.0
Sources: Various City departments.