2023 ACFR City of Fridley, Minnesota City of Fridley, Minnesota
Annual Comprehensive Financial ReportAnnual Comprehensive Financial ReportFor year end December 31, 2023For year end December 31, 2023
FridleyMN.gov/233/City-FinancialsFridleyMN.gov/233/City-Financials
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Prepared by:
Finance Department
Joseph Starks
Finance Director
CITY OF FRIDLEY, MINNESOTA
Annual Comprehensive Financial Report
For Year End December 31, 2023
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EXHIBIT PAGE
Letter of Transmittal 3
Certificate of Achievement 11
Elected and Appointed Officials 13
City Administrative Organizational Structure 15
Independent Auditor's Report 19
Management's Discussion and Analysis 23
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position A-1 39
Statement of Activities A-2 40
Fund Financial Statements:
Balance Sheet - Governmental Funds A-3 42
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds A-4 44
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities A-5 47
Statement of Net Position - Proprietary Funds A-6 48
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds A-7 50
Statement of Cash Flows - Proprietary Funds A-8 52
Statement of Fiduciary Net Position - Fiducary Funds A-9 54
Statement of Changes in Fiducary Net Position - Fiduciary Funds A-10 55
Notes to Financial Statements 57
Required Supplementary Information:
Budgetary Comparison Schedule - General Fund B-1 102
Schedule of Changes in the Total OPEB Liability and Related Ratios B-2 106
Schedule of Proportionate Share of Net Pension Liability - General Employees
Retirement Fund B-3 107
Schedule of Pension Contributions - General Employees Retirement Fund B-4 108
Schedule of Proportionate Share of Net Pension Liability - Public Employees Police
and Fire Fund B-5 109
Schedule of Pension Contributions - Public Employees Police and Fire Fund B-6 110
Notes to RSI 111
I. INTRODUCTORY SECTION
II. FINANCIAL SECTION
CITY OF FRIDLEY, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2023
TABLE OF CONTENTS
EXHIBIT PAGE
CITY OF FRIDLEY, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2023
TABLE OF CONTENTS
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds C-1 120
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds C-2 121
Subcombining Balance Sheet - Nonmajor Special Revenue Funds C-3 126
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue Funds C-4 127
Subcombining Balance Sheet - Nonmajor Capital Project Funds C-5 130
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Capital Project Funds C-6 131
Special Revenue Funds:
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual:
Cable TV Fund D-1 134
Solid Waste Abatement Fund D-2 135
Police Activity Fund D-3 136
Springbrook Nature Center Fund D-4 137
Internal Service Funds:
Combining Statement of Net Position E-1 140
Combining Statement of Revenues, Expenses and Changes in Net Position E-2 141
Combining Statement of Cash Flows E-3 142
Housing and Redevelopment Authority (Component Unit):
Balance Sheet - Governmental Funds F-1 144
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds F-2 146
Subcombining Balance Sheet - Nonmajor Capital Project Funds F-3 148
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Capital Project Funds F-4 150
Custodial Funds:
Combining Statement of Net Position - Fiduciary Funds G-1 154
Combining Statement of Changes in Fiduciary Net Position - Fiduciary Funds G-2 155
EXHIBIT PAGE
CITY OF FRIDLEY, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2023
TABLE OF CONTENTS
Financial Trends:
Net Position by Component Table 1 160
Changes in Net Position Table 2 162
Fund Balances - Governmental Funds Table 3 166
Changes in Fund Balances - Governmental Funds Table 4 168
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 170
Direct and Overlapping Property Tax Capacity Rates Table 6 172
Principal Property Taxpayers Table 7 174
Property Tax Levies and Collections Table 8 175
Debt Capacity:
Ratios of Outstanding Debt by Type Table 9 176
Direct and Overlapping Govermental Activities Debt Table 10 177
Legal Debt Margin Information Table 11 179
Pledged Revenue Coverage Table 12 180
Demographic and Economic:
Demographic and Economic Statistics Table 13 182
Principal Employers Table 14 183
Full-Time Equivalent City Government Employees by Function/Program Table 15 184
Operating Information:
Operating Indicators by Function/Program Table 16 186
Capital Asset Statistics by Function/Program Table 17 188
III. STATISTICAL SECTION (Unaudited)
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I. INTRODUCTORY SECTION
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June 3, 2024
To the Citizens of the City of Fridley,
Mayor and Council Members
The Annual Comprehensive Financial Report (ACFR) of the City of Fridley,
Minnesota (City), for the fiscal year ended December 31, 2023, 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. The
City believes that the data, as presented, is accurate in all material aspects. The
data 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. All disclosures necessary to enable the reader to gain the maximum
understanding of the City’s financial activity have been included.
Generally Accepted Accounting Principles (GAAP) 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’s MD&A may be found immediately
following the report of the independent auditors.
All City funds, departments, commissions, and other organizations for which the
City is financially accountable are presented within the ACFR. The City provides a
full range of services to its citizens, including police and fire protection; water and
sanitary sewer utilities; the construction and maintenance of streets and sidewalks;
recreational facilities; commercial and residential real estate development
coordination; and general administrative services. The Housing and
Redevelopment Authority (HRA) is included in the reporting entity as a component
unit of the City as the governing board is appointed by the City Council and
because of the City’s financial relationship with the HRA.
Fridley Civic Campus
7071 University Ave N.E. Fridley, MN 55432
763-571-3450 | FAX: 763-571-1287 | FridleyMN.gov
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CITY OF FRIDLEY, MINNESOTA
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, the City Charter, the Fridley City Code and
other applicable actions of the City Council.
PROFILE OF THE CITY
The City is a first–ring suburban community with a population of 30,289, according
to the current census estimate. The City is located 10 minutes north of downtown
Minneapolis and 25 minutes northwest of downtown St. Paul. Incorporated in July
of 1949, the City covers about 11 square miles and is home to some of the most
important industries in the world. An “industrial spine” around the rail corridor has
served the City well and has provided the community with nearly as many jobs as
the number of residents. The City is home to the largest number of employees in
Anoka County.
LOCAL ECONOMY
The local economy continues to grow through an increase in new construction,
redevelopment, and renovation. Unemployment in Minnesota rose slightly
throughout 2023. Current unemployment as of February 2024 is still near historic
lows at 2.7% and is lower than the national average of 3.8%. In 2023, job growth
rose at a steady pace as Minnesota employers added just over 35,000 jobs which
brought the total to just over 3 million jobs by year-end. The state surpassed pre-
pandemic employment levels as of September. The Consumer Price Index (CPI) has
steadily declined from a multi-decade high of 9.1% in June of 2022 to the current
CPI of 3.2% as of February 2024. While there is optimism, inflation continues to be
a worry for many as the cost of life’s necessities continues to be impactful, and
recent data from the Federal Reserve shows the ongoing process to tame inflation
is not over.
In December, the City received its one-time payment of $1,292,504 in public safety
aid funds from the State of Minnesota. The City intends to use the funds as one-
time expenditures as there will not be continued funding moving forward.
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CITY OF FRIDLEY, MINNESOTA
Based on preliminary data received from Anoka County for the January 2, 2024,
assessment (unaudited), the estimated market value of the City increased modestly
in 2023, growing by about $121,722,300, or 2.8%, compared to the prior year. The
number of residential home sales decreased by about 27.22% over the same time
period, largely due to rising interest rates and a low inventory of homes for sale.
Additionally, the City experienced a relatively modest year of real estate
development, adding about $7,312,000 of new market value to the community.
The estimated market value for all property classes in the City increased, with
apartments up 2.4%, commercial/industrial up 5.8%, and residential values by 1.5%.
The average sale price of a residential homestead increased by 1.4% compared to
the previous year. These increases in valuation are consistent with other cities
located in the Minneapolis–St. Paul Metropolitan Statistical Area.
LONG-TERM FINANCIAL PLANNING
As a fully developed community, the City continues to experience certain financial
challenges. In order to maintain affordable housing and the corresponding tax
base, the City must help protect its aging housing stock. The City also works
diligently, through the budget process, to develop financial plans that emphasize
reasonable tax rates, consistent service delivery, infrastructure investments, and
good standing within the broader financial and local government community.
The City continues to focus on quality-of-life improvements throughout the
community. These initiatives include revitalizing parks and public areas,
maintaining and improving current City services, and increasing the
communication between City representatives and the public.
The City also continues to work closely with every level of government and other
interested parties to improve transportation throughout the community, including
major investment in area highways, roads and streets. Funding for these
improvements comes largely from the State and certain federal agencies with
additional monies levied through special assessment against benefiting properties
and other applicable funds controlled by the City.
Annually, the City develops a five-year financial plan for all budgeted funds. The
plans help the organization better understand the effects of certain public policy
decisions and allow the City to make more proactive decisions regarding its
financial position.
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CITY OF FRIDLEY, MINNESOTA
MAJOR INITIATIVES
In 2023, the City continued a number of projects in partnership with various public
and private entities related to several infrastructure and redevelopment projects.
The following non-exhaustive list outlines many of the more significant projects.
1. The City completed the 2023 Street Rehabilitation Project that included the
Marian Hills, Georgetown Charles and Flannery Park neighborhoods.
2. The City completed the 53rd Avenue Roundabout Safety Project in the area
of 53rd Avenue from the West Target Entrance to Highway 65.
3. The City completed the 53rd Avenue Trail and Walk Improvements Project
in the area of 53rd Avenue from Main Street to the West Target Entrance.
4. The City completed the West Moore Lake Drive Mill and Overlay Project in
the area of West Moore Lake Drive from 61st Avenue to Highway 65 West
Service Drive.
5. The City completed construction on three parks, Ed Wilmes, Creek View and
Skyline. It neared completion on a very large project at Moore Lake Park.
These were all funded through the City’s Park System Improvement Plan
(PSIP).
6. The City allocated approximately $435,000 of American Rescue Plan Act
(ARPA) funds to cover the costs of Water System Upgrades with Street
Projects and Water Treatment Plan Security in 2023.
7. It was a strong year for development as the value for all building permits
was approximately $73.5 million.
Moving into 2024, the City continues its effort to enhance and expand various
programs and services while ensuring a fiscally responsible organization sensitive
to the needs of the community. The 2024 Budget reflects these goals while also
responding to various cost pressures and guidance from the City Council.
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CITY OF FRIDLEY, MINNESOTA
The City plans on allocating remaining ARPA funds to various utility infrastructure
projects in 2024, including Recondition Water System Pumps for $200,000, Water
Treatment Plant Security for $210,000, Water Distribution System Reconstruction
for $314,500 and Sanitary Sewer Lining for $1,100,000.
In 2024, construction and development have begun strong. As of March 31, 2024,
the value of new construction totaled approximately $4.6 million. The City has
several large projects anticipated for 2024, including, but not limited to the
following:
1. A major re-development project is underway as Roers Companies
previously requested the approval of several items to allow for the
redevelopment of the Moon Plaza Property. The redevelopment includes
construction of a 169-unit affordable multi-family rental housing
development.
2. Design works on the 57th Avenue Bridge will be completed in 2024.
Simultaneous to the design work, staff will be working with the legislature
to secure a State match for our Federal funding request for bridge
construction. Acquisition of the right-of-way (3 small properties) to make
way for the bridge will be completed.
3. Coordination between the City of Fridley and the Metropolitan Council
continues plans for the development of the former Girl Scout Camp for the
Metropolitan Council Sanitary Pump Station.
4. Platting efforts and parcel consolidation are underway to prepare the
property at the southeast quadrant of Central Avenue and Mississippi Street
for development of additional housing. Planning and Housing and
Redevelopment Authority staff continue to evaluate housing type and
development layout.
5. A multi-modal parklet is being created at University Avenue and 61st Avenue
NE.
6. The former Park Construction site has been purchased by a private industrial
entity who plans to build a 20,000 to 50,0000 square foot building on the
site.
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CITY OF FRIDLEY, MINNESOTA
7. A small office condominium building, including eight for sale units, will be
constructed on 6th Street (south of Highway 694).
8. The City plans to complete the 2024 Street Rehabilitation Project that
includes the Brookview, Norton and Marian Hills neighborhoods.
9. The City plans to start design and/or construction at multiple City parks,
including Edgewater, Plymouth Square, Sylvan Hills as part of the approved
PSIP. The largest project of the park system improvement plan, Commons,
will start design in 2024 with construction planned for 2025.
RELEVANT FINANCIAL POLICIES
In developing and improving the accounting system of the City, 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 from the same.
The evaluation of costs and benefits are based on the reasonable estimates and
judgments of City management.
All internal control evaluations occur within the above framework. The internal
accounting controls of the City adequately safeguard assets and provide
reasonable assurance of the proper recording of financial transactions.
Budgets for the General, Special Revenue and Capital Projects Funds are adopted
on an annual basis. Budgetary control is maintained in compliance with the City
Charter. The City 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 expended.
Budget adjustments between City departments 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.
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CITY OF FRIDLEY, MINNESOTA
There is a monthly process to review actual revenues and expenditures. The City
Council also adopts a revised budget annually to reflect any material changes
consistent with the City Charter.
Expenditures are not approved until it has been determined that the expenditure
1) meets a public purpose, 2) is necessary, 3) adequate funds have been
appropriated; 4) funds are available; and 5) the authorization of the appropriation
expenditure by the appropriate parties. As required by the City Charter, budgetary
control is maintained within each department at the department level per the
annually adopted budget resolution. This is the level of control at which
expenditures may not legally exceed appropriations.
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, Cable Television Fund, and all Enterprise Funds. In 2023, all
the funds addressed by this policy, with the exception of the Springbrook Nature
Center, met their fund balance guidelines.
The purpose of the Investment Policy is to develop an overall program and
philosophy for cash investments, designed and managed with a high degree of
professionalism and worthy of public trust. It establishes that elected and
appointed officials as well as certain employees are custodians of a portfolio. It
also establishes cash investment objectives, delegation of authority, standards of
prudence, internal controls, authorized investments, selection process for
investments and broker representations.
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 Office of the State Auditor. The
accounting firm of Redpath and Company was engaged by the City to render an
opinion on the financial statements of the City. 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.
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CITY OF FRIDLEY, MINNESOTA
AWARDS AND ACKNOWLEDGEMENTS
The GFOA awarded a Certificate of Achievement for Excellence in Financial
Reporting to the City for its ACFR for the fiscal year ended December 31, 2022. In
order to be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized Annual Comprehensive financial report.
This report must satisfy both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City
continues to strive to meet the requirements of the Certificate of Achievement
Program and will continue submitting it to the GFOA to determine the eligibility
for future certificates.
The preparation of this report could not have been accomplished without the
dedicated services of all members of the Finance Department, with special
recognition to Korrie Johnson, Assistant Finance Director, and the staff of the
Accounting Division. Staff are also grateful for the professional guidance from the
City auditors, Redpath and Company. Staff would also like to express appreciation
to the Mayor and City Council for their interest and support in planning and
conducting the financial operations of the City in a responsible and thoughtful
manner.
Respectfully submitted,
Walter T. Wysopal Joe Starks
City Manager Finance Director/City Treasurer
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Fridley
Minnesota
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2022
Executive Director/CEO
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Term of Office
Expires December
Mayor Scott J. Lund 2024
Councilmember At Large David Ostwald 2024
Councilmember, Ward I Thomas Tillberry 2026
Councilmember, Ward II Ryan Evanson 2026
Councilmember, Ward III Ann R. Bolkcom 2026
City Manager Walter T. Wysopal
City Attorney Sarah J. Sonsalla
Prosecuting Attorney City of Coon Rapids
City Clerk Melissa M. Moore
Department Heads:
Director of Finance and City Treasurer Joseph A. Starks
Director of Public Safety Ryan N. George
Director of Public Works James P. Kosluchar
Director of Community Development Scott J. Hickok
Director of Community Services Michael W. Maher
Director of Employee Resources Rebecca A. Hellegers
December 31, 2023
APPOINTED OFFICIALS
ELECTED OFFICIALS
CITY OF FRIDLEY, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
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City Manager
Community Development
Building Inspections
Planning
Rental Inspection
Parks and
Recreation
Parks and Recreation
Springbrook Nature Center
Employee Resources Finance
Accounting
Assessing
Information Technology
Municipal Liquor
Public Safety
Police
Emergency Management
Fire
Public Works
Facilities Management
Engineering
Forestry
Parks Maintenance
Streets Maintenance
Fleet Services
City Attorney Communications and Engagement
City Clerk's Office
Utilities15
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II. FINANCIAL SECTION
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400 Robert Street North, Suite 1600, St. Paul, MN, 55101 651.426.7000 www.redpathcpas.com
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Fridley, Minnesota
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental
activities, the business-type activities, the discretely presented component unit, each
major fund, and the aggregate remaining fund information of the City of Fridley,
Minnesota, as of and for the year ended December 31, 2023, and the related notes
to the financial statements, which collectively comprise the City of Fridley,
Minnesota's basic financial statements as listed in the table of contents.
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, the discretely presented component unit, each major fund,
and the aggregate remaining fund information of the City of Fridley, Minnesota, as of
December 31, 2023, 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.
Basis for Opinions
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. Our responsibilities under those standards are further described
in the Auditor's Responsibilities for the Audit of the Financial Statements section of
our report. We are required to be independent of the City of Fridley, Minnesota and
to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinions.
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Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with accounting principles generally accepted in the
United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether
there are conditions or events, considered in the aggregate, that raise substantial
doubt about the City of Fridley, Minnesota’s ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud or
error, and to issue an auditor's report that includes our opinions. Reasonable
assurance is a high level of assurance but is not absolute assurance and therefore is
not a guarantee that an audit conducted in accordance with generally accepted
auditing standards and Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment
made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and
Governmental Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism
throughout the audit.
Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, and design and perform audit
procedures responsive to those risks. Such procedures include examining,
on a test basis, evidence regarding the amounts and disclosures in the
financial statements.
Obtain an understanding of internal control relevant to the audit 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 City of
Fridley, Minnesota’s internal control. Accordingly, no such opinion is
expressed.
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Evaluate the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as
well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City of
Fridley, Minnesota’s ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit, significant audit
findings, and certain internal control related matters that we identified during the
audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require
that the management’s discussion and analysis, the budgetary comparison
schedule, and the schedules of OPEB and pension information, as listed in the table
of contents, be presented to supplement the basic financial statements. Such
information is the responsibility of management and, 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.
Supplementary 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 accompanying combining and individual nonmajor fund financial
statements and schedules are presented for purposes of additional analysis and are
not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial
statements. The 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
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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 nonmajor fund financial
statements and schedules are fairly stated, in all material respects, in relation to the
basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report.
The other information comprises the introductory and statistical sections but does
not include the basic financial statements and our auditor's report thereon. Our
opinions on the basic financial statements do not cover the other information, and
we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to
read the other information and consider whether a material inconsistency exists
between the other information and the basic financial statements, or the other
information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report
dated June 3, 2024 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 solely 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 the effectiveness of the City of Fridley, Minnesota’s
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.
REDPATH AND COMPANY, LLC
St. Paul, Minnesota
June 3, 2024
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Fridley (City), we offer readers of the City’s financial
statements this narrative overview and analysis of the financial activities of the City
for the fiscal year ended December 31, 2023. The City encourages readers to
consider the information presented here in conjunction with additional information
that we have furnished in the letter of transmittal, which can be found in the table of
contents within this report.
Financial Highlights
The City’s assets and deferred outflows of resources exceeded its liabilities and
deferred inflows of resources at the close of the most recent fiscal year by
$93,129,477 (net position). Of this amount, $30,926,670 (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 2023, the City’s total net position increased by $13,767,283.
As of the close of the current fiscal year, the City’s governmental funds reported
combined ending fund balances of $56,767,858. Of this total amount, $22,072,612,
or 39% is restricted through legal restrictions or third–party agreements.
At the end of the current fiscal year, the General Fund balance of $12,885,809
included $258,652 in nonspendable, $1,381,489 in restricted, and $11,245,668 in
unassigned fund balance.
The City’s total debt decreased by $2,514,729 during the current fiscal year. Total
debt outstanding at December 31, 2023 is $82,736,021.
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the City’s
basic financial statements. The City’s basic financial statements comprise of 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.
23
Management’s Discussion and Analysis
Government–wide financial statements. The government–wide financial
statements are designed to provide readers with a broad overview of the City’s
finances, in a manner similar to a private sector business. The statement of net
position presents information on all of the City’s assets, deferred outflows of
resources, liabilities, and deferred inflows of resource, with the remainder 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 is improving or deteriorating.
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
that are principally supported by taxes and intergovernmental revenues (i.e.,
governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees and charges (i.e., business–type
activities). The governmental activities of the City include general government,
public safety, public works, community development, and parks and recreation. The
business–type activities of the City include Liquor, Water, Sewer and Storm Water.
The government–wide financial statements can be found on Exhibits A-1 and A-2 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, 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 can be divided into three categories: governmental funds;
proprietary funds; and fiduciary funds.
24
Management’s Discussion and Analysis
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
expenditures, and change in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The City maintains six 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, Debt Service, Street Improvements, Community Investment,
Park Improvements, and CARES/ARPA Funds, 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 as referred to in the table of
contents of this report.
The City adopts an annual appropriated budget for its General Fund, four Special
Revenue funds and five Capital Project Funds. 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 Exhibits A-3 and
A-4 of this report.
25
Management’s Discussion and Analysis
Proprietary funds. The City maintains four enterprise funds and two 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 uses enterprise funds to account for its Liquor, Water,
Sewer, and Storm Water operations. The City uses internal service funds to account
for its Employee Benefits and Self Insurance. 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 Liquor, Water, Sewer, Storm Water and
operations, all of which are considered to be major funds of the City. 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 Exhibits A-6 through
A-8 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’s own programs. The accounting used for fiduciary
funds is much like that used for proprietary funds. The basic fiduciary fund financial
statements can be found Exhibits A-9 through A-10 of this report.
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 as
listed in the table of contents within 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 in the table of contents
within this report.
26
Management’s Discussion and Analysis
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, assets exceeded liabilities by
$93,129,477 at the close of the most recent fiscal year.
A significant portion of the City's net position ($55,100,718 or 59%) 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 uses
these capital assets to provide services to citizens; consequently, these assets are not
available for future spending. Although the City’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
2023 2022 2023 2022 2023 2022
Current and other assets $68,717,893 $69,234,551 $19,762,921 $16,405,782 $88,480,814 $85,640,333
Capital assets 83,800,824 72,796,652 27,565,510 27,610,263 111,366,334 100,406,915
Total assets $152,518,717 $142,031,203 $47,328,431 $44,016,045 $199,847,148 $186,047,248
Total deferred outflows of resources 13,048,644 15,346,190 58,577 12,383 13,107,221 15,358,573
Long-term liabilities outstanding $89,460,839 $105,160,637 $3,004,453 $3,291,661 $92,465,292 $108,452,298
Other liabilities 11,162,047 8,069,363 1,700,905 2,404,943 12,862,952 10,474,306
Total liabilities $100,622,886 $113,230,000 $4,705,358 $5,696,604 $105,328,244 $118,926,604
Total deferred inflows of resources 14,467,346 3,110,218 29,302 6,805 14,496,648 3,117,023
Net position:
Net investment in capital assets $30,920,434 $27,164,052 $24,180,284 $23,290,271 $55,100,718 $50,454,323
Restricted 7,102,089 3,957,778 - - 7,102,089 3,957,778
Unrestricted 12,454,606 9,915,345 18,472,064 15,034,748 30,926,670 24,950,093
Total net position $50,477,129 $41,037,175 $42,652,348 $38,325,019 $93,129,477 $79,362,194
Governmental Activities Business-Type Activities Totals
The City adopted accounting guidance, Governmental Account Standards Board
(GASB) Statement No. 68, Accounting and Financial Reporting for Pensions – an
Amendment of GASB Statement No. 27 in 2016. Essentially, the standard required the
unfunded portion of defined benefit pension plans to be reported by all participating
employers. Recording the net pension liability and the pension related deferred
outflows and inflows of resources do not change the City’s future funding
requirements or obligations under the plans, which are determined by Minnesota
statutes.
27
Management’s Discussion and Analysis
Net position was negatively impacted by $12,497,929 at December 31, 2023 due to
pension–related amounts included in the above schedule related to the standard are
as follows:
Deferred outflows of resources 12,014,264
Deferred inflows of resources (12,003,039)
Noncurrent liabilities (12,509,154)
Total ($12,497,929)
A portion of the City’s net position represents resources that are subject to external
restrictions on how they may be used. The remaining balance of $30,926,670 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 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 increased the City’s net position by $9,439,954. Some of the
largest factors contributing to this increase are as follows: Investment earnings
increased by $3,443,720 as a result of improved investment rates of return. Capital
Grants and Contributions increased $2,608,414. This was largely due to $1,292,504
received as part of a one-time statewide public safety aid disbursement, and an
increase in municipal state aid for street projects of $906,186. Property taxes
increased $2,069,773 due to an increased levy, primarily for tax abatement bonds
issued in 2022 and levied for beginning in 2023. Finally, charges for services
increased by $1,921,816. The majority of this is due to reimbursements from other
local governments for shared street projects.
28
Management’s Discussion and Analysis
City of Fridley’s Changes in Net Position
2023 2022 2023 2022 2023 2022
Revenues:
Program revenues:
Charges for services $7,726,692 $5,804,876 $20,649,450 $19,474,103 $28,376,142 $25,278,979
Operating grants and contributions 2,908,752 2,082,891 38,706 84,590 2,947,458 2,167,481
Capital grants and contributions 4,743,465 2,135,051 191,275 466,483 4,934,740 2,601,534
General revenues:
Property taxes 19,410,491 17,340,718 - - 19,410,491 17,340,718
Grants and contributions not
restricted to specific programs 1,875,934 1,839,727 434,500 794,835 2,310,434 2,634,562
Unrestricted investment earnings 2,866,774 (576,946) 828,946 (387,377) 3,695,720 (964,323)
Gain on sale of property 188,057 48,528 39,551 17,550 227,608 66,078
Other 797,556 259,020 103 295 797,659 259,315
Total revenues 40,517,721 28,933,865 22,182,531 20,450,479 62,700,252 49,384,344
Expenses:
General government 6,921,931 6,389,864 - - 6,921,931 6,389,864
Public safety 13,556,667 12,178,884 - - 13,556,667 12,178,884
Public works 6,244,765 6,186,146 - - 6,244,765 6,186,146
Community development 1,450,922 1,478,757 - - 1,450,922 1,478,757
Parks and recreation 661,060 1,854,907 - - 661,060 1,854,907
Interest on long-term debt 2,580,922 2,795,304 - - 2,580,922 2,795,304
Liquor - - 5,858,397 6,098,010 5,858,397 6,098,010
Water - - 3,364,844 3,270,302 3,364,844 3,270,302
Sewer - - 6,726,694 6,266,036 6,726,694 6,266,036
Storm water - - 1,566,767 1,496,526 1,566,767 1,496,526
Total expenses 31,416,267 30,883,862 17,516,702 17,130,874 48,932,969 48,014,736
Increase (decrease) in net position before transfers 9,101,454 (1,949,997) 4,665,829 3,319,605 13,767,283 1,369,608
Transfers 338,500 338,500 (338,500) (338,500) - -
Increase in net position 9,439,954 (1,611,497) 4,327,329 2,981,105 13,767,283 1,369,608
Net position - January 1, as previously reported 41,037,175 42,648,672 38,325,019 35,293,914 79,362,194 77,942,586
Prior period adjustment - - - 50,000 - 50,000
Net position - January 1, restated 41,037,175 42,648,672 38,325,019 35,343,914 79,362,194 77,992,586
Net position - December 31 $50,477,129 $41,037,175 $42,652,348 $38,325,019 $93,129,477 $79,362,194
Business-Type Activities TotalsGovernmental Activities
29
Management’s Discussion and Analysis
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenses:
Charges for services
20%
Operating grants and
contributions
8%
Capital grants and
contributions
13%
Property taxes
52%
Grants and
contributions not
restricted to specific
programs
5%
All Other
2%
Governmental Activities - Revenues
General government
22%
Public safety
43%
Public works
20%
Community
development
5%
Parks and recreation
2%
Interest on long‐term
debt
8%
Governmental Activities - Expenses
30
Management’s Discussion and Analysis
Business–Type Activities
Business-type activities increased net position by $4,327,329. This increase is
primarily due to positive cash flow in all four of the City’s Enterprise funds, namely
increased water usage due to a drier than normal year. In addition, it is also due to
federal grants being used for utility infrastructure in the amount of $434,500.
Business–Type Activities – Program Revenues vs Operating Expenses
Charges for
services
97%
Other
Less than 1%
Capital grants and
contributions
1%
Grants and contributions not
restricted to specific programs
2%
Business-Type Activities - Revenues
Liquor
34%
Water
19%
Sewer
38%
Storm Water
9%
Business-Type Activities - Expenses
`
31
Management’s Discussion and Analysis
Financial Analysis of the Government's Funds
Governmental funds. The focus of the City’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’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’s governmental funds reported a
combined ending fund balance of $56,767,858.
The General Fund’s fund balance increased by $2,037,976 in 2023. This was more
than the $0 anticipated fund balance change with the 2023 budget.
Intergovernmental revenue was over budget by $1,659,887 largely due to a one-time
statewide public safety aid disbursement of $1,292,504. Investment income came in
$465,997 over budget due to an increasing rate environment.
The Debt Service Fund balance increased by $1,667,168 in 2023.
The Street Improvements Fund has an assigned fund balance of $2,005,960 and is
identified as a major fund. The fund balance decreased by $523,270 in 2023.
The Community Investment Fund has a committed fund balance of $14,197,809 and
is identified as a major fund. The fund balance increased $1,115,227. The increase in
fund balance is primarily due to a $576,977 gain on investments. The fund also
received a one-time payment of $452,110 as a result a conduit debt issuance.
The CARES/ARPA fund has $1,811,552 in unearned revenue at December 31, 2023.
Non–major special revenue funds decreased by $30,327 in 2023.
Non–major capital project funds increased by $362,292 in 2023. This was primarily
due to $371,359 increase in public safety expenditures from leasing public safety
vehicles and related lease issuance. Additionally, the fund received a transfer in of
$250,000 and recognized proceeds from the sale of capital assets.
32
Management’s Discussion and Analysis
Proprietary funds. The City’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 is: Liquor,
$1,966,399; Water, $6,271,785; Sewer, $6,376,419; and Storm Water, $4,036,308. The
Liquor, Water, Sewer, and Storm Water funds increased respectively in net position
by $122,431, $2,410,641, $999,341, and $878,832.
Budgetary Highlights
General Fund
The original revenue and expenditure budgets were both amended. Three significant
adjustments were made. Police insurance premiums were increased in the amount of
$82,000. Another substantial budget amendment was for $76,000 for Tools that
were able to be purchased towards auto theft prevention and covered by the
increase in premiums. Finally, Fire paid on call staff was increased by $65,000 and
was offset by an increase in Police security revenue.
Operating expenditures in total were less than the final budgetary estimates by
$334,861. Information Technology came in $153,752 under budget largely due to
two unfilled positions at the beginning of 2023. Emergency reserves in the amount
of $88,300 were not used. Parks and recreation had $86,978 budget authority
remaining partially due to a reduced summer staff and having lower than anticipated
utility bills.
Total revenues were greater than the final budgetary estimates by $2,053,115. Local
grants came in $1,427,613 over budget due primarily to a one-time statewide public
safety aid disbursement in the amount of $1,292,504. Investment income came in
$465,997 over budget due to an improved interest rate environment.
33
Management’s Discussion and Analysis
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and
business type activities as of December 31, 2023, amounts to $111,366,334 (net of
accumulated depreciation). This investment in capital assets includes land, buildings
and structures, improvements other than buildings, machinery and equipment,
infrastructure, construction in progress, and right to use leased assets.
City of Fridley’s Capital Assets
(Net of Depreciation)
2023 2022 2023 2022 2023 2022
Land $5,654,704 $5,502,104 $699,047 $699,047 $6,353,751 $6,201,151
Buildings and structures 46,062,576 43,493,731 5,194,941 5,483,565 51,257,517 48,977,296
Improvements other than buildings 5,263,555 3,424,332 - 19,316,182 5,263,555 22,740,514
Machinery and equipment 4,467,525 3,960,468 769,402 744,478 5,236,927 4,704,946
Infrastructure 17,202,482 14,039,539 19,549,941 - 36,752,423 14,039,539
Construction in progress 4,571,540 2,376,478 603,083 581,963 5,174,623 2,958,441
Right to use leased assets 578,442 - 749,096 785,028 1,327,538 785,028
Total Capital Assets $83,800,824 $72,796,652 $27,565,510 $27,610,263 $111,366,334 $100,406,915
Governmental Activities Business-Type Activities Totals
Additional information on the City’s capital assets can be found in Note 6.
34
Management’s Discussion and Analysis
Long-term debt. At the end of the current fiscal year, the City had total bonded
debt outstanding of $76,920,000. This is a decrease of $2,785,000 from 2023.
$41,780,000 of this is for General Obligation Improvement Debt, which is supported
by special assessments and property tax levies. $11,970,000 is General Obligation Tax
Increment Debt which is support by tax increments. $20,730,000 is General
Obligation Tax Abatement Bonds and $2,440,000 is General Obligation Utility
Revenue Debt, which is financed by the respective Utility Fund. In addition, there is
long–term debt in the amount of $1,278,683 for compensated absences and
$3,210,638 of bond issuance premium/discount.
Additional information on the City’s long–term debt can be found in Note 7.
City of Fridley’s Outstanding Debt
General Obligation Improvement Bonds, General Obligation Equipment Certificates,
General Obligation Revenue Bonds, the related premiums or discounts, and
Compensated Absences are as follows:
2023 2022 2023 2022 2023 2022
General Obligation Improvement Bonds $41,780,000 $43,245,000 $ - $ - $41,780,000 $43,245,000
General Obligation Tax Increment Bonds 11,970,000 12,715,000 - - 11,970,000 12,715,000
General Obligation Tax Abatement Bonds 20,730,000 20,730,000 - - 20,730,000 20,730,000
General Obligation Revenue Bonds - - 2,440,000 3,015,000 2,440,000 3,015,000
Compensated Absences 1,278,683 1,214,923 - - 1,278,683 1,214,923
Lease Liability 516,400 - 810,300 817,471 1,326,700 817,471
Bond issuance premium/discount 3,125,806 3,416,687 84,832 96,669 3,210,638 3,513,356
Total $79,400,889 $81,321,610 $3,335,132 $3,929,140 $82,736,021 $85,250,750
Governmental Activities Business-Type Activities Totals
The City of Fridley has an Aa2 rating.
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 is
$122,055,999. Only $41,780,000 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.
Requests for information. This financial report is designed to provide a general
overview of the City’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, 7071 University Avenue NE, Fridley, Minnesota 55432.
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36
BASIC FINANCIAL STATEMENTS
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38
Exhibit A-1
Component Unit
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments $57,221,670 $16,694,047 $73,915,717 $18,620,671
Receivables:
Accounts 221,414 4,575,051 4,796,465 699,985
Taxes 479,356 - 479,356 45,469
Special assessments 1,548,869 10,684 1,559,553 -
Mortgage - - - 3,548,471
Notes - - - 400,000
Interest 351,397 - 351,397 93,778
Due from component unit 450,709 - 450,709 -
Due from other governments 3,041,688 196,293 3,237,981 -
Internal balances 3,165,063 (3,165,063) - -
Prepaid items 207,711 454,153 661,864 -
Inventories - at cost 83,152 997,756 1,080,908 -
Lease receivable 1,946,864 - 1,946,864 -
Land held for resale - - - 743,030
Capital assets (net of accumulated depreciation):
Land 5,654,704 699,047 6,353,751 1,011,755
Buildings and structures 46,062,576 5,194,941 51,257,517 -
Improvements other than buildings 5,263,555 - 5,263,555 -
Machinery and equipment 4,467,525 769,402 5,236,927 -
Infrastructure 17,202,482 19,549,941 36,752,423 -
Construction in progress 4,571,540 603,083 5,174,623 -
Right-to-use leased assets 578,442 749,096 1,327,538 -
Total assets 152,518,717 47,328,431 199,847,148 25,163,159
Deferred outflows of resources:
Related to other post employment benefits 1,034,380 58,577 1,092,957 -
Related to pensions 12,014,264 - 12,014,264 -
Total deferred outflows of resources 13,048,644 58,577 13,107,221 -
Liabilities:
Due to primary government - - - 450,595
Accounts payable 384,617 448,444 833,061 886,743
Deposits payable 107,387 361 107,748 -
Contracts payable 2,337,993 50,094 2,388,087 -
Due to other governments 221,064 599,237 820,301 -
Salaries payable 797,675 101,964 899,639 -
Accrued interest payable 1,178,271 20,672 1,198,943 -
Unearned revenue 1,811,552 43,318 1,854,870 -
Compensated absences payable:
Due within one year 857,229 - 857,229 -
Due in more than one year 421,454 - 421,454 -
Other post employment benefits payable:
Due within one year 70,405 - 70,405 -
Due in more than one year 1,803,879 106,136 1,910,015 -
Lease liability:
Due within one year 115,854 151,815 267,669 -
Due in more than one year 400,546 658,485 1,059,031 -
Bonds payable:
Due within one year 3,280,000 285,000 3,565,000 -
Due in more than one year 74,325,806 2,239,832 76,565,638 -
Net pension liability:
Due in more than one year 12,509,154 - 12,509,154 -
Total liabilities 100,622,886 4,705,358 105,328,244 1,337,338
Deferred inflows of resources:
Related to leases 1,946,864 - 1,946,864 -
Related to other post employment benefits 517,443 29,302 546,745 -
Related to pensions 12,003,039 - 12,003,039 -
Total deferred inflows of resources 14,467,346 29,302 14,496,648 -
Net position:
Net investment in capital assets 30,920,434 24,180,284 55,100,718 1,011,755
Restricted for:
Debt service 5,484,171 - 5,484,171 -
Tax increment purposes - - - 7,070,266
Police forfeitures 136,211 - 136,211 -
Public safety 1,292,504 - 1,292,504 -
Cable television equipment 100,218 - 100,218 -
Donations 88,985 - 88,985 -
Unrestricted 12,454,606 18,472,064 30,926,670 15,743,800
Total net position $50,477,129 $42,652,348 $93,129,477 $23,825,821
Housing &
Redevelopment
Authority
Primary Government
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2023
The accompanying notes are an integral part of these financial statements.
39
Operating Capital
Charges For Grants and Grants and
Expenses Services Contributions Contributions
Functions/Programs
Primary government:
Governmental activities:
General government $6,921,931 $2,229,748 $186,874 $ -
Public safety 13,556,667 903,757 2,507,212 -
Public works 6,244,765 1,997,663 5,540 4,743,465
Community development 1,450,922 2,247,338 - -
Parks and recreation 661,060 348,186 209,126 -
Interest on long-term debt 2,580,922 - - -
Total governmental activities 31,416,267 7,726,692 2,908,752 4,743,465
Business-type activities:
Liquor 5,858,397 6,230,594 - -
Water 3,364,844 4,894,229 725 -
Sewer 6,726,694 7,491,197 - 19,624
Storm water 1,566,767 2,033,430 37,981 171,651
Total business-type activities 17,516,702 20,649,450 38,706 191,275
Total primary government $48,932,969 $28,376,142 $2,947,458 $4,934,740
Component unit:
Housing and Redevelopment Authority $4,545,172 $416,308 $138,232 $ -
Total component unit $4,545,172 $416,308 $138,232 $ -
General revenues:
Property taxes
Tax increment collections
Grants and contributions not
restricted to specific programs
Investment income/(loss)
Gain on sale of property
Other
Transfers
Total general revenues
and transfers
Change in net position
Net position - January 1
Net position - December 31
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2023
Program Revenues
The accompanying notes are an integral part of these financial statements.
40
Exhibit A-2
Component Unit
Housing &
Governmental Business-Type Redevelopment
Activities Activities Total Authority
($4,505,309) $ - ($4,505,309) $ -
(10,145,698) - (10,145,698) -
501,903 - 501,903 -
796,416 - 796,416 -
(103,748) - (103,748) -
(2,580,922) - (2,580,922) -
(16,037,358) - (16,037,358) -
- 372,197 372,197 -
- 1,530,110 1,530,110 -
- 784,127 784,127 -
- 676,295 676,295 -
- 3,362,729 3,362,729 -
(16,037,358) 3,362,729 (12,674,629) $ -
($3,990,632)
(3,990,632)
19,410,491 - 19,410,491 625,607
- - - 6,088,745
1,875,934 434,500 2,310,434 -
2,866,774 828,946 3,695,720 753,375
188,057 39,551 227,608 127,970
797,556 103 797,659 -
338,500 (338,500) - -
25,477,312 964,600 26,441,912 7,595,697
9,439,954 4,327,329 13,767,283 3,605,065
41,037,175 38,325,019 79,362,194 20,220,756
$50,477,129 $42,652,348 $93,129,477 $23,825,821
Primary Government
Net (Expense) Revenue and Changes in Net Position
The accompanying notes are an integral part of these financial statements.
41
General Debt Service
Cash and investments $12,605,448 $5,307,024
Receivables:
Accounts 89,284 -
Taxes 342,603 123,177
Special assessments 74,222 1,995
Interest 351,397 -
Due from component unit 15,737 -
Due from other governments 233,391 -
Due from other funds 29,133 -
Prepaids 175,500 -
Lease receivable 1,946,864 -
Inventories, at cost 83,152 -
Total assets $15,946,731 $5,432,196
Liabilities, Deferred Inflows of Resources, and Fund Balances:
Liabilities:
Accounts payable $176,966 $475
Due to other funds - -
Deposits payable 93,937 -
Contracts payable - -
Due to other governments 7,104 -
Salaries payable 614,246 -
Unearned revenue - -
Total liabilities 892,253 475
Deferred inflows of resources:
Related to leases 1,946,864 -
Unavailable revenue 221,805 51,109
Total deferred inflows of resources 2,168,669 51,109
Fund balance:
Nonspendable 258,652 -
Restricted 1,381,489 5,433,063
Committed - -
Assigned - -
Unassigned 11,245,668 (52,451)
Total fund balance 12,885,809 5,380,612
Total liabilities, deferred inflows of resources, and fund balance $15,946,731 $5,432,196
Assets:
CITY OF FRIDLEY, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2023
The accompanying notes are an integral part of these financial statements.
42
Exhibit A-3
Street
Improvements
Community
Investment
Park
Improvements CARES/ARPA
Other
Governmental
Funds
Intra-Activity
Eliminations
Totals
Governmental
Funds
$43,317 $11,226,984 $18,026,181 $1,881,812 $5,546,534 $ - $54,637,300
- - 33,192 - 95,058 - 217,534
- 251 133 - 13,225 - 479,389
1,404,982 299 - - 67,338 - 1,548,836
- - - - - - 351,397
- - - - 434,972 - 450,709
2,673,748 - - - 134,549 - 3,041,688
- 2,986,216 - - - (29,133) 2,986,216
- - - - 32,211 - 207,711
- - - - - - 1,946,864
- - - - - - 83,152
$4,122,047 $14,213,750 $18,059,506 $1,881,812 $6,323,887 ($29,133)$65,950,796
$18,437 $15,410 $100,618 $ - $67,276 $ - $379,182
- - - - 29,133 (29,133) -
11,300 - - - 2,150 - 107,387
490,492 - 1,847,501 - - - 2,337,993
195,428 - - - 283 - 202,815
- - - - 35,101 - 649,347
- - - 1,811,552 - - 1,811,552
715,657 15,410 1,948,119 1,811,552 133,943 (29,133) 5,488,276
- - - - - - 1,946,864
1,400,430 531 133 - 73,790 - 1,747,798
1,400,430 531 133 - 73,790 - 3,694,662
- - - - 32,211 - 290,863
- - 15,021,631 - 236,429 - 22,072,612
- 14,197,809 - 70,260 3,687,329 - 17,955,398
2,005,960 - 1,089,623 - 2,160,185 - 5,255,768
- - - - - - 11,193,217
2,005,960 14,197,809 16,111,254 70,260 6,116,154 - 56,767,858
$4,122,047 $14,213,750 $18,059,506 $1,881,812 $6,323,887 ($29,133)$65,950,796
Fund balance reported above $56,767,858
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.83,800,824
Other long-term assets are not available to pay for current-period expenditures
and, therefore, are reported as unavailable revenue in the funds.1,747,798
Long-term liabilities, including bonds payable, are not due and payable in the
current period and, therefore, are not reported in the funds.(79,300,477)
Other post employment benefits are not due and payable in the current period
and, therefore, are not reported in the funds.(1,357,347)
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.(11,181,527)
Net position of governmental activities $50,477,129
The accompanying notes are an integral part of these financial statements.
43
General Debt Service
Street
Improvements
Revenues:
Taxes $13,710,273 $5,143,482 $ -
Special assessments 47,216 47 607,867
Licenses and permits 1,131,770 - -
Intergovernmental revenue 3,967,987 - 4,556,734
Charges for services 2,685,894 - -
Reimbursements - - -
Fines and forfeits 154,274 - -
Investment income (loss)642,097 - 132,947
Contributions and donations 47,200 - -
Payment from component unit - 1,135,413 -
Interest on loan - - -
Miscellaneous:
Other 262,604 - -
Total revenues 22,649,315 6,278,942 5,297,548
Expenditures:
Current:
General government 4,361,518 - -
Public safety 10,532,022 - -
Public works 3,859,192 - 55,694
Community development 1,379,785 - -
Parks and recreation 808,922 - -
Debt service:
Principal - 2,210,000 -
Interest and other charges - 2,949,429 -
Capital outlay - - 5,658,524
Total expenditures 20,941,439 5,159,429 5,714,218
Excess (deficiency) of revenues over (under) expenditures 1,707,876 1,119,513 (416,670)
Other financing sources (uses):
Proceeds from sale of capital assets - - -
Lease issuance - - -
Transfers in 330,100 547,655 -
Transfers out - - (106,600)
Total other financing sources (uses)330,100 547,655 (106,600)
Net change in fund balance 2,037,976 1,667,168 (523,270)
Fund balance - January 1 10,847,833 3,713,444 2,529,230
Fund balance - December 31 $12,885,809 $5,380,612 $2,005,960
CITY OF FRIDLEY, MINNESOTA
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2023
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
The accompanying notes are an integral part of these financial statements.
44
Exhibit A-4
Community
Investment
Park
Improvements CARES/ARPA
Other
Governmental
Funds
Intra-Activity
Eliminations
Totals
Governmental
Funds
$ - $ - $ - $569,795 $ - $19,423,550
- - 28,792 - 683,922
- - - 221,068 - 1,352,838
- 30,000 - 1,166,294 - 9,721,015
- - - 557,799 - 3,243,693
- - - 200,034 - 200,034
- - - 41,652 - 195,926
576,977 949,471 129,154 282,379 - 2,713,025
- 186,385 - 18,041 - 251,626
- - - - - 1,135,413
97,181 - - - - 97,181
466,646 35,882 - 29,546 - 794,678
1,140,804 1,201,738 129,154 3,115,400 - 39,812,901
25,577 - 45,102 1,194,519 - 5,626,716
- - - 999,621 - 11,531,643
- - - 13,358 - 3,928,244
- - - 6,360 - 1,386,145
- 53,431 - 741,597 - 1,603,950
- - - 75,908 - 2,285,908
- - - 22,107 - 2,971,536
- 7,689,586 - 760,330 - 14,108,440
25,577 7,743,017 45,102 3,813,800 - 43,442,582
1,115,227 (6,541,279) 84,052 (698,400) - (3,629,681)
- - - 188,057 - 188,057
- - - 592,308 - 592,308
- - - 250,000 (789,255) 338,500
- (682,655) - - 789,255 -
0 (682,655) - 1,030,365 - 1,118,865
1,115,227 (7,223,934) 84,052 331,965 - (2,510,816)
13,082,582 23,335,188 (13,792) 5,784,189 - 59,278,674
$14,197,809 $16,111,254 $70,260 $6,116,154 $ - $56,767,858
The accompanying notes are an integral part of these financial statements.
45
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46
Exhibit A-5
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) ($2,510,816)
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 depreciation exceeded
capital outlays in the current period. 11,004,172
Deferred revenues in the statement of activities that do not provide current
financial resources are not reported as revenues in the funds. 343,154
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.1,984,481
Internal service funds are used by management to charge the cost of
certain activities to individual funds. This amount is net expenditures
attributable to governmental activities. (1,432,456)
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. (48,314)
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. 99,733
Change in net position of governmental activities (Exhibit A-2) $9,439,954
For The Year Ended December 31, 2023
CITY OF FRIDLEY, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
The accompanying notes are an integral part of these financial statements.
47
Assets:Liquor Water
Current assets:
Cash and investments $1,561,958 $7,639,586
Accounts receivable - 1,659,453
Special assessments receivable - 9,994
Due from other governments - 4,487
Prepaid items - 253
Inventories - at cost 894,734 103,022
Total current assets 2,456,692 9,416,795
Noncurrent assets:
Capital assets:
Land 151,946 147,485
Buildings and structures 528,636 8,369,979
Machinery and equipment 322,452 2,905,452
Infrastructure - 23,681,933
Construction in process - -
Right to use leased asset 919,604 39,813
Total capital assets 1,922,638 35,144,662
Less: Allowance for depreciation and amortization (856,083) (21,209,221)
Net capital assets 1,066,555 13,935,441
Total assets 3,523,247 23,352,236
Deferred outflows of resources:
Related to pensions - -
Related to other post employment benefits 13,419 21,037
Total deferred outflows of resources 13,419 21,037
Liabilities:
Current liabilities:
Accounts payable 338,153 92,765
Deposits payable 361 -
Accrued interest payable - 20,672
Contracts payable - -
Due to other governments 64,517 215,481
Due to other funds - 2,756,216
Salaries payable 26,338 32,273
Payroll deductions payable - -
Compensated absences payable - -
Lease liability - current 131,927 7,144
Bonds payable - current - 285,000
Unearned revenue 43,318 -
Total current liabilities 604,614 3,409,551
Noncurrent liabilities:
Other post employment benefits 24,313 38,117
Compensated absences - noncurrent - -
Lease liability - noncurrent 578,429 27,948
Bonds payable - noncurrent - 2,239,832
Net pension liability - -
Total noncurrent liabilities 602,742 2,305,897
Total liabilities 1,207,356 5,715,448
Deferred inflows of resources:
Related to pensions - -
Related to other post employment benefits 6,712 10,523
Total deferred outflows of resources 6,712 10,523
Net position:
Net investment in capital assets 356,199 11,375,517
Unrestricted 1,966,399 6,271,785
Total net position $2,322,598 $17,647,302
Net position reported above
Adjustment to report the cumulative internal balance for the net effect
activity between the internal service fund and the enterprise funds over time
Net position of business-type activities (Exhibit A-1)
Business-Type Activities - Enterprise Funds
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2023
The accompanying notes are an integral part of these financial statements.
48
Exhibit A-6
Governmental Activities -
Sewer Storm Water Total Internal Service Funds
$4,095,118 $3,397,385 $16,694,047 $2,584,370
2,297,373 618,225 4,575,051 3,880
- 690 10,684 -
18,758 173,048 196,293 -
453,900 - 454,153 -
- - 997,756 -
6,865,149 4,189,348 22,927,984 2,588,250
22,800 376,816 699,047 -
903,244 - 9,801,859 -
1,172,268 542,164 4,942,336 -
11,540,262 14,512,828 49,735,023 -
25,134 577,949 603,083 -
72,142 - 1,031,559 -
13,735,850 16,009,757 66,812,907 -
(9,490,581) (7,691,512) (39,247,397) -
4,245,269 8,318,245 27,565,510 -
11,110,418 12,507,593 50,493,494 2,588,250
- - - 12,014,266
10,231 13,890 58,577 -
10,231 13,890 58,577 12,014,266
7,784 9,742 448,444 5,435
- - 361 -
- - 20,672 -
16,022 34,072 50,094 -
319,239 - 599,237 18,249
130,000 100,000 2,986,216 -
18,280 25,073 101,964 -
- - - 136,328
- - - 857,229
12,744 - 151,815
- - 285,000 -
- - 43,318 -
504,069 168,887 4,687,121 1,017,241
18,539 25,167 106,136 -
- - - 433,454
52,108 - 658,485 -
- - 2,239,832 -
- - - 12,509,154
70,647 25,167 3,004,453 12,942,608
574,716 194,054 7,691,574 13,959,849
- - - 12,003,040
5,119 6,948 29,302 -
5,119 6,948 29,302 12,003,040
4,164,395 8,284,173 24,180,284 -
6,376,419 4,036,308 18,650,911 (11,360,373)
$10,540,814 $12,320,481 $42,831,195 ($11,360,373)
$42,831,195
(178,847)
$42,652,348
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
49
Liquor Water
Sales $6,230,219 $ -
Cost of sales (4,443,563) -
Gross profit 1,786,656 -
Operating revenues:
Customer billings - 4,891,077
Charges for services - -
Other revenues 375 3,152
Total operating revenues 375 4,894,229
Total gross profit and operating revenues 1,787,031 4,894,229
Operating expenses:
Personnel services 713,095 907,807
Supplies and other charges:
Disposal charges - -
Other 458,474 1,288,870
Depreciation and amortization 178,782 1,007,899
Total operating expenses 1,350,351 3,204,576
Operating income (loss)436,680 1,689,653
Nonoperating revenues (expenses):
Intergovernmental revenue - 435,225
Investment income (loss)66,621 408,568
Insurance reimbursement - -
Interest and fiscal charges (42,370)(131,983)
Gain (loss) on sale of capital assets - 9,178
Other - -
Total nonoperating revenues (expenses)24,251 720,988
Income (loss) before transfers and capital contributions 460,931 2,410,641
Transfers and capital contributions:
Transfers out (338,500) -
Capital contributions - -
Total contributions and transfers (338,500) -
Change in net position 122,431 2,410,641
Net position - January 1 2,200,167 15,236,661
Net position - December 31 $2,322,598 $17,647,302
Changes in net position reported above
Adjustment to report the cumulative internal balance for the net effect of activity
between the internal service funds and the enterprise funds over time.
Changes in net position of business-type activities (Exhibit A-2)
For The Year Ended December 31, 2023
Business-Type Activities - Enterprise Funds
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
The accompanying notes are an integral part of these financial statements.
50
Exhibit A-7
Governmental Activities -
Sewer Storm Water Total Internal Service Funds
$ - $ - $6,230,219 $ -
- - (4,443,563) -
- - 1,786,656 -
7,491,197 2,033,430 14,415,704 -
- - - 1,887,408
- - 3,527 -
7,491,197 2,033,430 14,419,231 1,887,408
7,491,197 2,033,430 16,205,887 1,887,408
494,746 642,033 2,757,681 3,256,053
5,232,866 - 5,232,866 -
564,987 510,541 2,822,872 340,419
413,983 392,372 1,993,036 -
6,706,582 1,544,946 12,806,455 3,596,472
784,615 488,484 3,399,432 (1,709,064)
- 37,981 473,206 19,860
170,544 183,213 828,946 153,749
- - - 19,084
(5,815) (2,600) (182,768) -
30,373 - 39,551 -
- 103 103 -
195,102 218,697 1,159,038 192,693
979,717 707,181 4,558,470 (1,516,371)
- - (338,500) -
19,624 171,651 191,275 -
19,624 171,651 (147,225) -
999,341 878,832 4,411,245 (1,516,371)
9,541,473 11,441,649 38,419,950 (9,844,002)
$10,540,814 $12,320,481 $42,831,195 ($11,360,373)
$4,411,245
(83,916)
$4,327,329
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
51
Liquor Water
Cash flows from operating activities:
Receipts from customers and users $6,229,568 $4,865,356
Receipts from interfund services provided - -
Payment to suppliers (4,852,687)(1,443,740)
Payment to employees (705,348)(897,703)
Operating contribution - -
Net cash flows from operating activities 671,533 2,523,913
Cash flows from noncapital financing activities:
Intergovernmental revenue - 435,225
Transfers out (338,500) -
Net cash flows from noncapital financing activities (338,500)435,225
Cash flows from capital and related
financing activities:
Acquisition of capital assets (93,141)(933,068)
Proceeds from sale of capital assets - 9,178
Capital grants and contributions - -
Principal received on special assessments - 4,113
Insurance reimbursement - -
Principal paid on revenue bonds - (586,837)
Principal paid on leases (107,115)(4,721)
Repayment on interfund loan - (488,149)
Interest and paying agent fees on long-term liabilities (42,371)(136,775)
Net cash flows from capital
and related financing activities (242,627)(2,136,259)
Cash flows from investing activities:
Investment income (loss)66,621 408,568
Net increase (decrease) in cash and cash equivalents 157,027 1,231,447
Cash and cash equivalents - January 1 1,404,931 6,408,139
Cash and cash equivalents - December 31 $1,561,958 $7,639,586
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $436,680 $1,689,653
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation and amortization 178,782 1,007,899
Operating contribution - -
Changes in assets and liabilities:
Decrease (increase) in receivables - (28,873)
Decrease (increase) in prepaid items - (253)
Decrease (increase) in inventories (4,627)(20,078)
Decrease (increase) in deferred outflows of resources (10,379)(16,593)
Increase (decrease) in payables 67,061 (115,923)
Increase (decrease) in unearned revenue (1,026) -
Increase (decrease) in deferred inflows of resources 5,042 8,081
Total adjustments 234,853 834,260
Net cash provided by operating activities $671,533 $2,523,913
Business-Type Activities - Enterprise Funds
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2023
The accompanying notes are an integral part of these financial statements.
52
Exhibit A-8
Governmental Activities -
Sewer Storm Water Total Internal Service Funds
$6,902,037 $1,905,077 $19,902,038 $ -
- - - 1,890,235
(5,848,563)(510,709)(12,655,699)(381,987)
(487,101)(630,011)(2,720,163)(1,589,830)
- 103 103 -
566,373 764,460 4,526,279 (81,582)
- 37,981 473,206 19,860
- - (338,500) -
- 37,981 134,706 19,860
(176,619)(974,407)(2,177,235) -
30,373 - 39,551 -
55,837 238,433 294,270 -
- 1,059 5,172 -
- - - 19,084
- - (586,837) -
(7,140) - (118,976)
(40,000)(30,000)(558,149) -
(5,815)(2,600)(187,561) -
(143,364)(767,515)(3,289,765)19,084
170,544 183,213 828,946 153,749
593,553 218,139 2,200,166 111,111
3,501,565 3,179,246 14,493,881 2,473,259
$4,095,118 $3,397,385 $16,694,047 $2,584,370
$784,615 $488,484 $3,399,432 ($1,709,064)
413,983 392,372 1,993,036 -
- 103 103 -
(589,160)(128,353)(746,386)2,827
(19,563) - (19,816) -
- - (24,705) -
(8,158)(11,064)(46,194)2,916,998
(19,323)17,523 (50,662)(12,841,946)
- - (1,026) -
3,979 5,395 22,497 11,549,603
(218,242)275,976 1,126,847 1,627,482
$566,373 $764,460 $4,526,279 ($81,582)
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
53
Exhibit A-9
Total
Assets:
Cash and investments $7,464
Accounts receivables 8,110
$15,574
Liabilities:
Accounts payable 15,574
Net Position:
Restricted for economic development $ -
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF FIDUCIARY NET POSITION - FIDUCIARY FUNDS
December 31, 2023
The accompanying notes are an integral part of these financial statements.
54
Exhibit A-10
Total
Additions:
Tax collections from other governments $136,089
Total additions 136,089
Deductions:
Payments of tax to other governments 129,285
Administrative fee 6,804
Total deductions 136,089
Net increase in fiduciary net position -
Net position - beginning -
Net position - ending $ -
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - FIDUCIARY FUNDS
For The Year Ended December 31, 2023
The accompanying notes are an integral part of these financial statements.
55
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56
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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 Activities) 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.
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THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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 and the fiduciary 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 City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It accounts for all financial resources
of the general government, except those required to be accounted for in another fund.
The Debt 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.
The Street Improvements Fund is used to account for repairs and replacements of city streets
and street related equipment such as signs and street lights.
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THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
The Community Investment Fund is used to account for capital costs associated with the parks
and public utilities maintained by the City.
The Park Improvements Fund is used to account for repairs and replacements of city park
equipment or park related improvements.
The CARES/ARPA Fund is used to account for monies received as a result of the pandemic.
The City reports the following major proprietary funds:
The Liquor Fund accounts for operations of the municipal liquor stores.
The Water Fund accounts for the water service charges which are used to finance the water
system operating expenses.
The Sewer Fund accounts for the sewer service charges which are used to finance the sanitary
sewer system operating expenses.
The Storm Water Fund accounts for storm sewer charges which are used to finance the storm
sewer operating expenses.
Additionally, the City reports the following fund types:
Internal Service Funds are used to account for employee fringe benefits, pension benefits,
and insurance deductibles 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.
Fiduciary Funds - Custodial Funds are used to account for monies on behalf of 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 operating revenues 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.
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THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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 and select Special Revenue 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 for the following Special
Revenue Funds: Cable TV Fund, Solid Waste Abatement Fund, Police Activity Fund, and
Springbrook Nature Fund. 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.
8. As required by the City Charter, budgetary control is maintained within department at the
departmental level. This is the level of control at which expenditures may not legally exceed
appropriations.
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THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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.
The following is a listing of funds whose expenditures exceeded budgeted appropriations:
Final Amount Over
Budget Actual Budget
Nonmajor Funds:
Solid Waste Abatement Fund $465,400 $471,669 $6,269
F. Cash and Investments
Cash and investment balances from all funds are pooled and invested to the extent available in
authorized investments. Investment income is allocated to individual funds on the basis of the
fund’s equity in the cash and investment pool.
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.
Investments are stated at fair value, based upon quoted market prices. Investment income is
accrued at the balance sheet date.
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.
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 “due from/to other
funds.” All short-term interfund receivables and payables at December 31, 2023 are planned to be
eliminated in the subsequent year. 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.
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THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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 in full on May 15 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 (including interest) is handled by the County
in the same manner as property taxes. Property owners are allowed to (and often do) prepay future
installments without interest or prepayment penalties.
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.
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THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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 the other governmental funds are recorded as
expenditures at the time of purchase.
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.
L. Lease Receivable
The City's lease receivable is measured at the present value of lease payments expected to be
received during the lease term. Under the lease agreement, the City may receive variable lease
payments that are dependent upon the lessee's revenue/the lessee's usage levels.
A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is
recorded at the commencement of the lease in an amount equal to the initial recording of the lease
receivable and is recognized as revenue over the lease term.
63
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
M. 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 City as assets with an estimated useful life in excess
of two years and an initial cost of more than the following:
Capitalization Threshold
Land $1
Building and building improvements $25,000
Land improvements $25,000
Vehicles and equipment $10,000
Infrastructure $50,000
Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.
Donated capital assets are recorded at estimated acquisition 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 City 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 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.
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:
Improvements other than building 10 – 20 years
Buildings and structures 10 – 40 years
Machinery and equipment 3 – 25 years
Infrastructure 15 – 50 years
Assets
The City has recorded a right to use leased asset as a result of implementing GASB 87. The right
to use assets are initially measured at an amount equal to the initial measurement of the related
lease liability plus any lease payments made prior to the lease term, less lease incentives and plus
any ancillary charges necessary to place the lease into service. The right to use assets are
amortized on a straight-line basis over the life of the related lease.
64
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
N. 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.
O. 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 deferred and amortized over the life of the bonds.
Issuance costs are immaterial and are expensed in the year of bond issuance.
In the fund financial statements, governmental fund types recognize bond premiums and discounts,
as well as bond issuance costs, 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.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as
debt service expenditures.
P. 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.
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.
65
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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.
Q. 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.
R. 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.
S. 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 assets that applies to a future period(s) and so will not
be recognized as an outflow of resources (expense/expenditure) until then. The government has
two items that qualify for reporting in this category. They are the pension and OPEB related
deferred outflows of resources reported in the government-wide Statement of Net Position and the
proprietary funds Statement of Net Position.
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 assets 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 pension
related deferred inflows of resources reported in the government-wide Statement of Net Position
and the proprietary funds Statement of Net Position and lease related deferred inflows reported in
the government-wide Statements of Net Position and the governmental funds Balance Sheet. The
City also has a 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 property taxes and special assessments.
66
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
T. Defined Benefit Pension Plans
For purposes of measuring the net pension liability, deferred outflows and inflows of resources, and
pension expense, information about the fiduciary net position of the Public Employees Retirement
Association (PERA) and additions to and deductions from PERA’s fiduciary net position have been
determined on the same basis as they are reported by PERA except that PERA’s fiscal year end
is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates
and benefit payments and refunds are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
U. 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 difference are as follows:
Bonds payable $74,480,000
Premium on bonds payable 3,125,806
Lease liability 516,400
Accrued interest payable 1,178,271
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities $79,300,477
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 difference are as follows:
Capital outlay $15,919,127
Depreciation expense (4,914,955)
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities $11,004,172
67
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
Another element of that reconciliation states that “revenues in the Statement of Activities that
do not provide current financial resources are not reported as revenues in the funds”. The
details of this difference are as follows:
Unavailable revenue - general property taxes:
At December 31, 2022 214,706
At December 31, 2023 (204,555)
Unavailable revenue - special assessments:
At December 31, 2022 1,189,938
At December 31, 2023 (1,543,243)
Net adjustments to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities ($343,154)
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
difference are as follows:
Principal repayments $2,210,000
Amortization of premium on bonds issuance 290,881
Lease repayment 75,908
Lease issuance (592,308)
Net adjustment to increase (decrease) net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities $1,984,481
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. Minnesota Statute
118A.03 identifies allowable forms of collateral.
68
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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, 2023, the bank balance of the
City’s and HRA’s deposits were either insured by the Federal Deposit Insurance Corporation (FDIC)
or covered by perfected pledged collateral held in the City or HRA’s name.
B. Investments
Subject to rating, yield, maturity and issuer requirements as prescribed by statue, Minnesota
Statutes 118A.04 and 118A.05 authorized the City to invest in United States securities, state and
local securities, commercial paper, time deposits, temporary general obligation bonds, repurchase
agreements, Minnesota joint powers investment trust and guaranteed investment contracts.
As of December 31, 2023 the City’s investment balances were as follows:
Fair Less
Investment Type Rating Value Than 1 1-5 6-10
Federal Farm Credit Bank AA+$1,309,333 $98,440 $1,210,893 $ -
Federal Home Loan Bank AA+$4,129,310 2,225,094 1,904,216 -
Federal National Mortgage Association AA+$8,543,541 1,018,472 2,015,087 5,509,982
Federal Home Loan Mortgage Corporation AA+$6,144,929 61 6,144,868 -
Local government bonds A+-AAA, Aaa-Aa3 $23,795,919 5,797,501 17,522,983 475,435
International Development Finance Corp N/R $827,530 437,422 390,108 -
US Treasury Notes AA+$9,589,693 7,718,940 1,870,753 -
US Treasury Bills AA+$4,619,765 4,619,765 - -
Brokered Certificates of Deposits N/R $4,523,325 1,317,205 3,206,120 -
Money market N/R $8,864,051 8,864,051 - -
Total $72,347,396 $32,096,951 $34,265,028 $5,985,417
Total investments $72,347,396
Deposits 1,571,185
Petty cash 4,600
Total cash and investments $73,923,181
Investment Maturities (in Years)
As of December 31, 2023 the HRA investment balances were as follows:
Fair Less
Investment Type Rating Value Than 1 1-5 6-10
Federal National Mortgage Association AA+1,308,120 $ - $738,376 $569,744
Federal Home Loan Mortgage Corp AA+3,208,291 82,811 3,125,480 -
Local Government Bonds N/R, AA1-AAA 2,411,683 646,925 1,764,758 -
Inter American Development Bank AAA 121,909 - 121,909 -
US Treasury Notes AA+4,516,275 4,516,275 - -
US Treasury Bills AA+742,385 742,385 - -
Brokered Certificates of Deposits N/R 2,669,190 486,701 2,182,489 -
Money Market N/R 3,537,413 3,537,413 - -
Total $18,515,266 $10,012,510 $7,933,012 569,744
Total investments $18,515,266
Deposits 105,405
Total cash and investments $18,620,671
Investment Maturities (in Years)
69
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
The City categorizes its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure the fair value of the asset. The hierarchy has three levels. Level 1 investments are valued
using inputs that are based on quoted prices in active markets for identical assets. Level 2
investments are valued using inputs that are based on quoted prices for similar assets or inputs
that are observable either directly or indirectly. Level 3 investments are valued using inputs that
are unobservable.
The City has the following recurring fair value measurements as of December 31, 2023:
Fair
Investment Type Value Level 1 Level 2 Level 3
Investments at fair value:
Federal Farm Credit Bank $1,309,333 $ - $1,309,333 $ -
Federal Home Loan Bank 4,129,310 - 4,129,310 -
Federal National Mortgage Association 8,543,541 - 8,543,541 -
Federal Home Loan Mortgage Corporation 6,144,929 - 6,144,929 -
Local government bonds 23,795,919 - 23,795,919 -
International Development Finance Corp 827,530 - 827,530 -
US Treasury Notes 9,589,693 9,589,693 - -
US Treasury Bills 4,619,765 4,619,765 - -
Brokered Certificates of Deposits 4,523,325 - 4,523,325 -
$63,483,345 $14,209,458 $49,273,887 $ -
Investments not categorized:
Money market 8,864,051
Total $72,347,396
Fair Value Measurement Using
The HRA has the following recurring fair value measurements as of December 31, 2023:
Fair
Investment Type Value Level 1 Level 2 Level 3
Investments at fair value:
Federal National Mortgage Association $1,308,120 $ - $1,308,120 $ -
Federal Home Loan Mortgage Corp 3,208,291 - 3,208,291 -
Local Government Bonds 2,411,683 - 2,411,683 -
Inter American Development Bank 121,909 - 121,909 -
US Treasury Notes 4,516,275 4,516,275 - -
US Treasury Bills 742,385 742,385 - -
Brokered Certificates of Deposits 2,669,190 - 2,669,190 -
Total/Subtotal $14,977,853 $5,258,660 $9,719,193 $ -
Investments not categorized:
Money market 3,537,413
Total $18,515,266
Fair Value Measurement Using
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, 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.
70
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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 only
those investment instruments authorized by Minnesota Statutes. The City’s investment policy does
not place further restrictions on investment options.
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 and HRA places no
limit on the amount the City or HRA 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 Bank 5.71%
Federal National Mortgage Association 11.81%
Federal Home Loan Mortgage Corporation 8.49%
US Treasury Notes 13.26%
US Treasury Bills 6.39%
Investments in a single issuer exceeding 5% of the HRA’s overall investment portfolio are in various
holdings as follows:
Federal National Mortgage Association 7.07%
Federal Home Loan Mortgage Corp 17.33%
US Treasury Notes 24.39%
First American Treasury Obligation Money Market 19.11%
71
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
3. Receivables
Significant receivables balances not expected to be collected within one year of December 31, 2023 are as
follows:
Street Community Park Nonmajor
General Debt Service Improvements Investment Improvements Funds Total
Special assessments receivable $52,277 $1,427 $1,011,483 $216 $ - $49,227 $1,114,630
Delinquent property taxes 117,900 38,800 - 200 100 4,400 161,400
Lease Receivable 1,946,864 - - - - - 1,946,864
$2,117,041 $40,227 $1,011,483 $416 $100 $53,627 $3,222,894
Major Funds
Primary Government
4. Lease Receivable
The City leases a portion of city owned sites for antenna rentals as follows:
Estimated Estimated Range of Monthly
Tower Leases Ending Term ** Payments During Lease Term Annual Adjustment Escalator
Dish Wireless - Commons Tower #1 5/1/2033 $2,000 - $3,103 5% every 5 years
AT&T - Marion Hills 7/1/2025 $3,374 - $3,906 Greater of 5% or CPI-U
AT&T - Public Works Garage 11/30/2028 $3,759 - $5,037 Greater of 5% or CPI-U
T-Mobile - Marion Hills 6/17/2032 $3,039 - $3,705 Greater of 2% or CPI-U up to 5%
T-Mobile - Commons Tower #1 3/28/2030 $2,919 - $3,420 Greater of 2% or CPI-U up to 5%
T-Mobile - TH65 Tower #2 2/22/2035 $2,078 - $3,460 Greater of 4% or CPI-U
T-Mobile - TH65 Tower #2 10/1/2025 $3,382 - $3,915 Greater of 5% or CPI-U
Verizon - Commons Tower #1 6/30/2033 $3,610 - $6,175 Greater of 5% or CPI-U
Verizon - TH65 Tower #2 2/13/2034 $3,610 - $6,484 Greater of 5% or CPI-U
** This is the period covered in which the lessor believes it is reasonably certain that the lease will be extended thru.
The leases are measured at the present value of the future minimum lease payments expected to be
received during the lease term at a discount rate of 5.50% which is based on the rate available to finance
acquisitions over the same period.
At December 31, 2023, the City recorded $1,946,864 in leases receivables and deferred inflows of
resources for these arrangements.
Total revenue recognized in relation to these leases is as follows:
Amortization of lease-related deferred inflows:
Site leases $190,348
Interest Revenue 114,851
Total revenue recognized
in relation to lease assets $305,199
72
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
5. 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:
Property Special
Taxes Assessments Total
Major funds:
General $149,424 $72,381 $221,805
Debt Service 49,134 1,975 51,109
Street Improvements - 1,400,430 1,400,430
Park Improvements 133 - 133
Community Investment 232 299 531
Nonmajor 5,632 68,158 73,790
Total unavailable revenue $204,555 $1,543,243 $1,747,798
6. Capital and Right to Use Leased Assets
Capital asset and right to use leased asset activity for the year ended December 31, 2023 was as follows:
Beginning Ending
Primary Government Balance Increases Decreases Transfers Balance
Governmental activities:
Capital assets, not being depreciated or amortized:
Land $5,502,104 $152,600 $ - $ - $5,654,704
Construction in progress 2,376,478 4,232,851 (2,037,789) - 4,571,540
Total capital assets, not being depreciated 7,878,582 4,385,451 (2,037,789)0 10,226,244
Capital assets, being depreciated and amortized:
Buildings and structures 53,656,293 4,679,125 (188,901)58,146,517
Machinery and equipment 14,161,867 2,154,756 16,316,623
Improvements 5,681,879 4,405,405 (177,960)9,909,324
Infrastructure 36,302,611 1,665,285 (779,137)15,347 37,204,106
Right-to-use leased assets - 666,894 - - 666,894
Total capital assets, being depreciated 109,802,650 13,571,465 (1,145,998)15,347 122,243,464
Less accumulated depreciation and amortization for:
Buildings and structures 10,162,562 2,110,280 (188,901) - 12,083,941
Machinery and equipment 10,201,399 315,533 - - 10,516,932
Improvements 2,257,547 1,242,462 (177,960) - 3,322,049
Infrastructure 22,263,072 1,158,228 (779,137)15,347 22,657,510
Right-to-use leased assets - 88,452 - - 88,452
Total accumulated depreciation 44,884,580 4,914,955 (1,145,998)15,347 48,668,884
Total capital assets being depreciated and amortized - net 64,918,070 8,656,510 - - 73,574,580
Governmental activities capital assets - net $72,796,652 $13,041,961 ($2,037,789)$0 $83,800,824
73
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
Beginning Ending
Primary Government Balance Increases Decreases Transfers Balance
Business-type activities:
Capital assets, not being depreciated or amortized:
Land $699,047 $ - $ - $ - $699,047
Construction in progress 581,963 167,219 (146,099) - 603,083
Total capital assets, not being depreciated 1,281,010 167,219 (146,099)0 1,302,130
Capital assets, being depreciated and amortized:
Buildings and structures 9,618,145 191,969 (8,255) - 9,801,859
Machinery and equipment 4,732,826 368,739 (143,882)(15,347) 4,942,336
Infrastructure 48,499,862 1,254,500 (19,339) - 49,735,023
Right-to-use leased assets 919,604 111,955 - - 1,031,559
Total capital assets, being depreciated and amortized 63,770,437 1,927,163 (171,476)(15,347) 65,510,777
Less accumulated depreciation and amortization for:
Buildings and structures 4,134,580 480,593 (8,255) - 4,606,918
Machinery and equipment 3,988,348 219,272 (19,339)(15,347) 4,172,934
Infrastructure 29,183,680 1,145,284 (143,882) - 30,185,082
Right-to-use leased assets 134,576 147,887 - - 282,463
Total accumulated depreciation and amortization 37,441,184 1,993,036 (171,476)(15,347) 39,247,397
Total capital assets being depreciated and amortized - net 26,329,253 (65,873) - - 26,263,380
Business-type activities capital assets - net $27,610,263 $101,346 ($146,099)$0 $27,565,510
The City has recorded one right-to-use leased asset for building space, and nineteen right-to-use leased
assets for vehicle leases. The related leases are discussed in the long-term liabilities footnote disclosure.
Depreciation and amortization expense was charged to functions/programs of the primary government as
follows:
Governmental activities:
General government $948,802
Public safety 1,154,322
Public works, including depreciation of general infrastructure assets 2,482,944
Community development 7,759
Parks and recreation 321,128
Total - governmental activities $4,914,955
Business-type activities:
Liquor $178,782
Water 1,007,899
Sewer 413,983
Storm water 392,372
Total - business-type activities $1,993,036
74
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
7. Long-Term Liabilities
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, 2023, the long-term bonded debt of the City consisted of the following:
Governmental Activities:
$49,130,000 General Obligation Improvement Bonds, Series 2017A due in varying annual
installments of $1,060,000 - $2,925,000 through February 1, 2042; interest at 3.00% - 5.00% $41,780,000
$9,510,000 General Obligation Tax Increment Bonds, Series 2019A due in varying annual
installments of $930,000- $1,150,000 beginning February 1, 2027 through February 1,
2035; interest at 2.125% - 5.00% 9,510,000
$4,540,000 General Obligation Tax Increment Bonds, Series 2020A due in varying annual
installments of $630,000- $860,000 beginning February 1, 2021 through February 1,
2026; interest at 5.00%2,460,000
$20,730,000 General Obligation Tax Abatement bonds, Series 2022A due in varying
installments of $965,000 - $1,855,000, beginning February 1, 2024 through February 1,
2038; interest at 4.00% - 5.00% 20,730,000
Unamortized premium 3,125,806
Subtotal governmental activities 77,605,806
Business-Type Activities:
$5,995,000 General Obligation Water Revenue Bonds of 2016A due in varying annual installments
of $275,000 - $575,000 through February 1, 2031; interest at 2.00% - 2.25% 2,440,000
Unamortized premium 84,832
Subtotal business-type activities 2,524,832
Total primary government $80,130,638
Lease agreements that qualify as other than short-term leases under GASB 87 have been recorded at the
present value of the future minimum lease payments as of the date of lease commencement.
The City has entered into an agreement to lease building space. The lease requires 82 monthly lease
payments that range from $12,153 - $13,975. The lease liability is measured at a discount rate of 5.50%,
which is the City’s incremental borrowing rate. The lease requires the City to pay a portion of the operating
costs of the building. As a result of the lease, the City has recorded a right to use asset with a net book
value of $650,452 and lease liability of $810,300 on December 31, 2023.
The City has entered into nineteen agreements to lease vehicles with terms up to 60 months. The leases
require monthly payments ranging from $205-$1,593. The lease liabilities are measured at discount rates
implicit in the lease ranging from 7.31% - 8.28%. As a result of these agreements, the City has recorded
right-to-use leased assets with a net book value totaling $677,086 with a lease liability of $616,343 at
December 31, 2023.
75
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
Total expense related to the leased asset for the year ended December 31, 2023 is as follows:
Amortization expense on building space $236,339
Variable lease expense 96,508
Interest on lease liabilities 69,111
Total expense recognized in relation to leased assets $401,958
The future minimum lease obligation and the net present value of the minimum lease payments as of
December 31, 2023 was as follows:
Year Ending
December 31, Principal Interest Total
2024 $151,814 $42,611 $194,425
2025 160,801 33,624 194,425
2026 170,326 24,099 194,425
2027 180,425 14,000 194,425
2028 146,934 18,005 164,939
Total $810,300 $132,339 $942,639
Year Ending
December 31, Principal Interest Total
2024 $115,854 $35,777 $151,631
2025 125,040 28,335 153,375
2026 115,155 20,474 135,629
2027 108,241 12,169 120,410
2028 52,110 3,459 55,569
Total $516,400 $100,214 $616,614
Business-Type Activities
Governmental Activities
76
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
Annual debt service requirements to maturity for general obligation and revenue bonds are as follows:
Year Ending
December 31, Principal Interest Principal Interest Principal Interest Principal Interest
2024 $1,535,000 $1,451,238 $780,000 $352,288 $965,000 $942,325 $285,000 $46,763
2025 1,615,000 1,372,488 820,000 312,288 1,015,000 892,825 290,000 41,012
2026 1,695,000 1,289,738 860,000 270,288 1,065,000 840,825 295,000 35,163
2027 1,780,000 1,211,763 930,000 225,538 1,120,000 786,200 300,000 29,212
2028 1,850,000 1,139,163 975,000 177,912 1,175,000 728,825 310,000 23,113
2029 1,925,000 1,073,288 1,025,000 143,287 1,230,000 668,700 315,000 16,862
2030 1,985,000 1,014,637 1,045,000 122,587 1,295,000 605,575 320,000 10,512
2031 2,040,000 954,263 1,065,000 101,487 1,360,000 539,200 325,000 3,656
2032 2,105,000 890,771 1,085,000 79,987 1,425,000 469,575 - -
2033 2,170,000 822,619 1,105,000 58,087 1,500,000 396,450 - -
2034 2,240,000 750,956 1,130,000 35,737 1,575,000 319,575 - -
2035 2,315,000 676,937 1,150,000 12,219 1,650,000 247,200 - -
2036 2,390,000 600,481 - - 1,715,000 179,900 - -
2037 2,465,000 520,047 - - 1,785,000 109,900 - -
2038 2,550,000 433,825 - - 1,855,000 37,100 - -
2039 2,640,000 343,000 - - - - - -
2040 2,730,000 249,025 - - - - - -
2041 2,825,000 151,812 - - - - - -
2042 2,925,000 51,188 - - - - - -
Total $41,780,000 $14,997,239 $11,970,000 $1,891,705 $20,730,000 $7,764,175 $2,440,000 $206,293
Governmental Activities Business-Type Activities
G.O. Improvement G.O. Tax Abatement Revenue BondsG.O. Tax Increment
Primary Government
77
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
Long-term liability activity for the year ended December 31, 2023 was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
G.O. improvement bonds $43,245,000 $ - ($1,465,000) $41,780,000 $1,535,000
G.O. tax increment bonds 12,715,000 - (745,000) 11,970,000 780,000
G.O. tax abatement bonds 20,730,000 - - 20,730,000 965,000
Total bonds payable 76,690,000 - (2,210,000) 74,480,000 3,280,000
Bond issuance premium/discount 3,416,687 - (290,881) 3,125,806 -
Lease liability - 592,308 (75,908) 516,400 115,854
Compensated absences**1,214,923 63,760 - 1,278,683 857,229
Total governmental activities
long-term debt $81,321,610 $656,068 ($2,576,789) $79,400,889 $4,253,083
Business-type activities:
Bonds payable:
G.O. revenue bonds $3,015,000 $ - ($575,000) $2,440,000 $285,000
Bond issuance premium/discount 96,669 - (11,837) 84,832 -
Lease liability 817,471 111,805 (118,976) 810,300 151,815
Total business-type activities
long-term debt $3,929,140 $111,805 ($705,813) $3,335,132 $436,815
**The change in compensated absences is presented at the net amount.
All long-term bonded indebtedness outstanding at December 31, 2023 is backed by the full faith and credit
of the City, including improvement and revenue bond issues. Delinquent assessments receivable at
December 31, 2023 totaled $14,296.
Revenues Pledged
Future revenue pledged for the payment of long-term debt is as follows:
Percent of Debt service Principal Pledged
Use of total as a % of Term of Remaining and Interest Revenue
Bond Issue Proceeds Type debt service net revenues Pledge Principal paid received
2022A Park Improvements Property Taxes 100% - 2020- $20,730,000 $1,030,880 -
2038
2020A Housing Redevelopment Tax Increment 100% 100.0% 2020- 2,460,000 886,625 886,625
2026
2019A Housing Redevelopment Tax Increment 100% 100.0% 2020- 9,510,000 248,788 248,788
2035
2017A Building Improvements Property Taxes 100% 95.06% 2017- 41,780,000 2,991,238 3,146,774
2042
2016A Water Revenue Bonds Infrastructure Improvements Water Customer 100% 12.88% 2016- 2,440,000 630,363 4,894,229
Net Revenue 2031
Revenue Pledged Current Year
78
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
8. Defined Benefit Pension Plans
A. Plan Description
The City participates in the following cost-sharing multiple-employer defined benefit pension plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s
defined benefit pension plans are established and administered in accordance with Minnesota
Statutes, Chapters 353 and 356. PERA’s defined benefit pension plans are tax qualified plans
under Section 401(a) of the Internal Revenue Code.
1. General Employees Retirement Fund (GERF)
All full-time (with the exception of employees covered by PEPFF) and certain part-time
employees of the City are covered by the General Employees Retirement Fund (GERF). GERF
members belong to the Coordinated Plan. Coordinated Plan members are covered by Social
Security.
2. Public Employees Police and Fire Fund (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local relief
association, now covers all police officers and firefighters hired since 1980. Effective July 1,
1999, the PEPFF also covers police officers and firefighters belonging to local relief
associations that elected to merge with and transfer assets and administration to PERA.
B. Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established by
state statute and can only be modified by the state legislature. 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.
1. GERF Benefits
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. Two methods are used to
compute benefits for PERA’s Coordinated members. Members hired prior to July 1, 1989
receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members
hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2%
for each of the first ten years of service and 1.7% for each additional year. Under Method 2,
the accrual rate for Coordinated Plan members is 1.7% for all years of service. For members
hired prior to July 1, 1989 a full annuity is available when age plus years of service equal 90
and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement
age is the age for unreduced Social Security benefits capped at 66.
79
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
Benefit increases are provided to benefit recipients each January. The postretirement increase
is equal to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum
increase of at least 1% and a maximum of 1.5%. Recipients that have been receiving the
annuity or benefit for at least a full year as of the June 30 before the effective date of the
increase will receive the full increase. Recipients receiving the annuity or benefit for at least
one month but less than a full year as of the June 30 before the effective date of the increase
will receive a reduced prorated increase. In 2023, legislation repealed the statute delaying
increases for members retiring before full retirement age.
2. PEPFF Benefits
Benefits for PEPFF members first hired after June 30, 2010 but before July 1, 2014 vest on a
prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits
for PEPFF members first hired after June 30, 2014 vest on a prorated basis from 50% after ten
years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of
average salary for each year of service. For PEPFF members who were first hired prior to July
1, 1989, a full annuity is available when age plus years of service equal at least 90.
Benefit increases are provided to benefit recipients each January. Beginning in 2020, the
postretirement increase will be fixed at 1%. Recipients that have been receiving the annuity or
benefit for at least 36 months as of the June 30 before the effective date of the increase will
receive the full increase. For recipients receiving the annuity or benefit for at least 25 months
but less than 36 months as of the June 30 before the effective date of the increase will receive
a reduced prorated increase.
C. Contributions
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions.
Contribution rates can only be modified by the state legislature.
1. GERF Contributions
Coordinated Plan members were required to contribute 6.50% of their annual covered salary
in fiscal year 2023 and the City was required to contribute 7.50% for Coordinated Plan
members. The City’s contributions to the GERF for the year ended December 31, 2023, were
$625,623 The City’s contributions were equal to the required contributions as set by state
statute.
2. PEPFF Contributions
Police and Fire Plan members were required to contribute 11.80% of their annual covered
salary in fiscal year 2023 and the City was required to contribute 17.70% for Police and Fire
plan members. The City’s contributions to the PEPFF for the year ended December 31, 2023,
were $946,028. The City’s contributions were equal to the required contributions as set by
state statute.
80
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
D. Pension Costs
1. GERF Pension Costs
At December 31, 2023, the City reported a liability of $5,631,031 for its proportionate share of
GERF’s net pension liability. The City net pension liability reflected a reduction due to the State
of Minnesota’s contribution of $16 million. The State of Minnesota is considered a non-
employer contributing entity and the state’s contribution meets the definition of a special
funding situation. The State of Minnesota’s proportionate share of the net pension liability
associated with the City totaled $155,264.
The net pension liability was measured as of June 30, 2023, and the total pension liability used
to calculate the net pension liability was determined by an actuarial valuation as of that date.
The City’s proportionate share of the net pension liability was based on the City’s contributions
received by PERA during the measurement period for employer payroll paid dates from July 1,
2022 through June 30, 2023, relative to the total employer contributions received from all of
PERA’s participating employers. The City’s proportionate share was 0.1007% at the end of
the measurement period and 0.0982% for the beginning of the period.
City's proportionate share of the net pension liability $5,631,031
State of Minnesota’s proportionate share of the net pension
liability associated with the City 155,264
Total $5,786,295
For the year ended December 31, 2023, the City recognized pension expense of $973,288 for
its proportionate share of the GERF’s pension expense. In addition, the City recognized an
additional $698 as pension expense (and grant revenue) for its proportionate share of the State
of Minnesota’s contribution of $16 million to the GERF.
At December 31, 2023, the City reported its proportionate share of the GERF’s deferred
outflows of resources and deferred inflows of resources related to pensions from the following
sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience $184,925 $39,273
Changes in actuarial assumptions 922,449 1,543,417
Difference between projected and
actual investment earnings - 224,014
Changes in proportion 155,464 -
Contributions paid to PERA
subsequent to the measurement date 314,869 -
Total $1,577,707 $1,806,704
81
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
The $314,869 reported as deferred outflows of resources related to pensions resulting from
City contributions subsequent to the measurement date will be recognized as a reduction of
the net pension liability in the year ended December 31, 2024. Other amounts reported as
deferred outflows and inflows of resources related to pensions will be recognized in pension
expense as follows:
Year Ending Pension
December 31, Expense
2024 231,900
2025 (815,924)
2026 162,314
2027 (122,156)
2028 -
Thereafter -
($543,866)
2. PEPFF Pension Costs
At December 31, 2023, the City reported a liability of $6,878,123 for its proportionate share of
the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2023
and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of that date. The City’s proportionate share of the net pension liability
was based on the City’s contributions received by PERA during the measurement period for
employer payroll paid dates from July 1, 2022 through June 30, 2023, relative to the total
employer contributions received from all of PERA’s participating employers. The City’s
proportionate share was 0.3983% at the end of the measurement period and 0.4048% for the
beginning of the period.
The State of Minnesota also contributed $18 million to PEPFF during the plan fiscal year ended
June 30, 2023. The contribution consisted of $9 million in direct state aid that meets the
definition of a special funding situation and $9 million in supplemental state aid that does not
meet the definition of a special funding situation. The direct state aid was paid on October 1,
2022. Thereafter, by October 1 of each year, the state will pay $9 million to the PEPFF until
full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental
state aid will continue until the fund is 90% funded, or until the State Patrol Plan (administered
by the Minnesota State Retirement System) is 90% funded, whichever occurs later. The State
of Minnesota’s proportionate share of the net pension liability associated with the City totaled
$277,026.
City's proportionate share of the net pension liability $6,878,123
State of Minneosta's proportionate share of the net
pension liability associated with the City 277,026
Total $7,155,149
The State of Minnesota is included as a non-employer contributing entity in the PEPFF
Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current
Reporting Period Only (pension allocation schedules) for the $9 million in direct state aid.
PEPFF employers need to recognize their proportionate share of the State of Minnesota’s
pension expense (and grant revenue) under GASB 68 special funding situation accounting and
financial reporting requirements. For the year ended December 31, 2023, the City recognized
pension expense of $2,217,196 for its proportionate share of the Police and Fire Plan’s pension
82
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
expense. The City recognized an additional ($16,685) as pension expense (and grant revenue)
for its proportionate share of the State of Minnesota’s contribution of $9 million to the PEPFF.
The State of Minnesota is not included as a non-employer contributing entity in the Police and
Fire Pension Plan pension allocation schedules for the $9 million in supplemental state aid.
The City recognized $35,847 for the year ended December 31, 2023 as revenue and an
offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s
on-behalf contributions to the Police and Fire Fund.
At December 31, 2023, the City reported its proportionate share of the PEPFF’s deferred
outflows of resources and deferred inflows of resources related to pensions from the following
sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience $1,895,353 $ -
Changes in actuarial assumptions 7,970,444 9,670,575
Difference between projected and
actual investment earnings - 313,571
Changes in proportion 97,008 212,190
Contributions paid to PERA
subsequent to the measurement date 473,754
Total $10,436,559 $10,196,336
The $473,754 reported as deferred outflows of resources related to pensions resulting from
City contributions subsequent to the measurement date will be recognized as a reduction of
the net pension liability in the year ended December 31, 2024. Other amounts reported as
deferred outflows and inflows of resources related to pensions will be recognized in pension
expense as follows:
Year Ending Pension
December 31, Expense
2024 $252,754
2025 39,731
2026 1,645,967
2027 (450,365)
2028 (1,721,618)
Thereafter -
($233,531)
The net pension liability will be liquidated by the general, water, sewer, storm water and liquor
funds.
83
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
E. Actuarial Assumptions
The total pension liability in the June 30, 2023 actuarial valuation was determined using an
individual entry-age normal actuarial cost method and the following actuarial assumptions:
Inflation 2.25% per year
Investment Rate of Return 7.00%
The long-term investment rate of return is based on a review of inflation and investment return
assumptions from a number of national investment consulting firms. The review provided a range
of investment return rates deemed to be reasonable by the actuary. An investment return of 7.00%
was deemed to be within that range of reasonableness for financial reporting purposes.
Benefit increases after retirement are assumed to be 1.25% for the GERF and 1.00% for the
PEPFF.
Salary growth assumptions in the GERF range in annual increments from 10.25% after one year
of service to 3.0% after 27 years of service. In the PEPFF, salary growth assumptions range from
11.75% after one year of service to 3.0% after 24 years of service.
Mortality rates for GERF were based on the Pub-2010 General Employee Mortality Table. Mortality
rates for PEPFF were based on the Pub-2010 Public Safety Employee Mortality tables. The tables
are adjusted slightly to fit PERA’s experience.
Actuarial assumptions for GERF are reviewed every four years. The most recent four-year
experience study for GERF was completed in 2022. The assumption changes were adopted by
the Board and become effective with the July 1, 2023 actuarial valuation. The most recent four-
year experience study for PEPFF was completed in 2020 and adopted by the Board and became
effective with the July 1, 2021 actuarial valuation.
The following changes in actuarial assumptions and plan provisions occurred in 2023:
General Employees Fund
Changes in Actuarial Assumptions:
The investment return assumption and single discount rate were changed from 6.50% to
7.00%.
Changes in Plan Provisions:
An additional one-time direct state aid contribution of $170.1 million was contributed to the Plan
on October 1, 2023.
The vesting period of those hired after June 30, 2010, was changed from five years of allowable
service to three years of allowable service.
The benefit increase delay for early retirements on or after January 1, 2024, was eliminated.
A one-time, non-compounding benefit increase of 2.50% minus the actual 2024 adjustment will
be payable in a lump sum for calendar year 2024 by March 31, 2024.
Police and Fire Fund
Changes in Actuarial Assumptions:
The investment return assumption was changed from 6.50% to 7.00%.
The single discount rate changed from 5.40% to 7.00%.
84
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
Changes in Plan Provisions:
An additional one-time direct state aid contribution of $19.4 million was contributed to the Plan
on October 1, 2023.
Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year
vesting schedule to a graded 10-year vesting schedule, with 50% vesting after five years,
increasing incrementally to 100% after 10 years.
A one-time, non-compounding benefit increase of 3.00% will be payable in a lump sum for
calendar year 2024 by March 31, 2024.
Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability
benefit for a psychological condition relating to the member’s occupation.
The total and permanent duty disability benefit was increased, effective July 1, 2023.
The State Board of Investment, which manages the investments of PERA, prepares an analysis of
the reasonableness on a regular basis of the long-term expected rate of return using a building-
block method in which best-estimate ranges of expected future rates of return are developed for
each major asset class. These ranges are combined to produce an expected long-term rate of
return by weighting the expected future rates of return by the target asset allocation percentages.
The target allocation and best estimates of geometric real rates of return for each major asset class
are summarized in the following table:
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Domestic equity 33.5%5.10%
International equity 16.5%5.30%
Fixed income 25.0%0.75%
Private markets 25.0%5.90%
Total 100%
F. Discount Rate
The discount rate used to measure the total pension liability in 2023 was 7.00%. The projection of
cash flows used to determine the discount rate assumed that contributions from plan members and
employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the
fiduciary net position of the GERF and PEPFF were projected to be available to make all projected
future benefit payments of current plan members. Therefore, the long-term expected rate of return
on pension plan investments was applied to all periods of projected benefit payments to determine
the total pension liability.
G. Pension Liability Sensitivity
The following presents the City’s proportionate share of the net pension liability, calculated using
the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate
share of the net pension liability would be if it were calculated using a discount rate one percentage
point lower (6.00%) or one percentage point higher (8.00%) than the current discount rate:
1% Decrease in Current 1% Increase in
Discount Rate Discount Rate Discount Rate
Proportionate share of the
GERF net pension liability $9,961,746 $5,631,031 $2,068,853
Proportionate share of the
PEPFF net pension liability $13,647,017 $6,878,123 $1,313,187
85
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
H. Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in a separately-
issued PERA financial report that includes financial statements and required supplementary
information. That report may be obtained at www.mnpera.org.
I. Pension Expense
Pension expense recognized by the City for the year ended December 31, 2023 is as follows
GERF $973,986
PEPFF 2,200,511
Total $3,174,497
9. Defined Contribution Plan
Five Council members of the City of Fridley are covered by the Public Employees Defined
Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by
PERA. 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.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, 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% 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% of
employer contributions and twenty-five hundredths of 1% (.0025) of the assets in each member's
account annually.
Total contributions made by the City during fiscal year 2023 were:
Employer Percentage of Covered Payroll Required
Employee (Pension Expense) Employee Employer Rate
$2,138 $2,138 5%5%5%
Contribution Amount
86
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
10. 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 the 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 $228,821 and $199,515 in State Aid to the Association for
December 31, 2023 and 2022, respectively. This transaction is recorded as revenue and
expenditures in the City’s financial statements.
During 2023 and as of December 31, 2023, the Association held no securities issued by the City
or other related parties.
11. Post-Employment Benefits Other Than Pensions (OPEB)
A. Plan Description
In addition to providing the pension benefits described in Notes 8 and 9, the City provides post
employment health care benefits, as defined in paragraph B, through its group health insurance
plan (the plan). The plan is a single-employer defined benefit OPEB plan 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. No assets are accumulated in a trust that
meets the criteria in paragraph 4 of GASB Statement No. 75.
B. Benefits Provided
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.
87
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
The City provides health coverage for peace officers or firefighters disabled or killed in the line of
duty in accordance with Minnesota Statute 299A.465. The amount of coverage provided is equal
to the employer portion of health insurance premiums that would have otherwise been paid if the
officer or firefighter was an active employee. During 2022, benefits were provided to four officers
disabled in the line of duty.
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, Medicare becomes
the primary insurer.
C. Participants
As of the January 1, 2023 actuarial valuation date, participants of the plan consisted of:
Active employees 150
Inactive employees or beneficiaries
currently receiving benefits 6
Total 156
D. Total OPEB Liability and Changes in Total OPEB Liability
The City’s total OPEB liability of $1,542,143 was measured as of January 1, 2023 and was
determined by an actuarial valuation as of January 1, 2023. Changes in the total OPEB liability
during 2023 were:
Balance - beginning of year $1,542,143
Changes for the year:
Service cost 37,192
Interest cost 31,042
Changes of benefit terms
Differences between expected and actual experience 828,651
Changes in assumptions (403,871)
Benefit payments (54,737)
Net changes 438,277
Balance - end of year $1,980,420
There were no plan changes since the measurement date of January 1, 2023.
88
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
E. Actuarial Assumptions and Other Inputs
The total OPEB liability in the January 1, 2023 actuarial valuation was determined using the
following actuarial assumptions and other inputs, applied to all periods included in the
measurement, unless otherwise specified:
Inflation 2.50%
Salary increases service graded increases ranging from 3% - 11.755%
Discount rate 4.00%
20-year municipal bond yield 4.00%
Healthcare cost trend rates 6.50% as of January 1, 2023 grading to 5.00% over 6
years and then to 4.00% over the next 48 years
Retirees' share of benefit-related costs 100%
Since the plan is funded on a pay-as-you-go basis, both the discount rate and the investment rate
of return was based on published rate information for 20-year high quality, tax exempt, general
obligation municipal bonds as of the measurement date.
Mortality rates were based on the Pub-2010 Public Retirement Plan Headcount – weighted
mortality tables (General, Safety) with MP-2020 Generational Improvement Scale.
The actuarial assumptions (retirement withdrawal) used in the January 1, 2023 valuation are similar
to those used to value pension liabilities for Minnesota public employees. The state pension plans
base their assumptions on periodic experience studies.
There were no changes in assumptions and other inputs since the prior measurement date.
F. Sensitivity of the Total OPEB Liability to Changes in The Discount Rate
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB
liability would be if it were calculated using a discount rate that is 1% lower or 1% higher than the
current discount rate 4.00%:
1% Decrease Discount Rate 1% Increase
(3.00%) (4.00%) (5.00%)
Total OPEB liability $2,197,782 $1,980,420 $1,790,262
G. Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB
liability would be if it were calculated using healthcare cost trend rates that are 1% lower or 1%
higher than the current healthcare cost trend rates of 6.50% grading to 5.00% over 6 years and
then to 4.00% over the next 4 years:
Healthcare Cost
Trend Rates
1% Decrease (6.25% decreasing to 5.00%) 1% Increase
Total OPEB liability $1,782,189 $1,980,420 $2,207,451
89
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
H. OPEB Expense and Deferred Outflows and Inflows of Resources Related To OPEB
For the year ended December 31, 2023, the City recognized $110,339 of OPEB expense. At
December 31, 2023, the City reported deferred outflows and inflows of resources related to OPEB
from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and actual experience $854,528 $170,474
Changes in actuarial assumptions 163,887 376,271
Contributions subsequent to
the measurement date 74,542 -
Total $1,092,957 $546,745
$74,542 reported as deferred outflows of resources related to OPEB resulting from City
contributions after the measurement date will be recognized as a reduction of the OPEB liability
in the year ended December 31, 2024. Amounts reported as deferred outflows and inflows of
resources related to OPEB will be recognized in OPEB expense as follows:
Year Ended OPEB
December 31, Expense
2024 $91,039
2025 91,039
2026 91,040
2027 55,514
2028 36,844
Thereafter 106,194
90
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
12. Interfund Receivables, Payables and Transfers
Interfund payables and receivables are representative of lending/borrowing arrangements to cover
deficit cash balances (unless otherwise indicated below) at the end of the fiscal year.
Interfund receivables and payables of the City are as follows:
Interfund Interfund
Receivables Payables
Due From/Due To:
Major Funds:
General Fund $29,133 $ -
Community Investment (1) (2)2,986,216 -
Water (1) (2) - 2,756,216
Sewer (2) - 130,000
Storm Water (2) - 100,000
Nonmajor Fund:
Police Activity - 29,133
Total $3,015,349 $3,015,349
(1) Interfund loan from Community Investment Fund to Water Fund to support capital costs
related to the Locke Park Water Treatment Improvement Project Balance was $2,286,216 at
December 31, 2023.
(2) Interfund loan from Community Investment Fund to Water, Sewer, and Storm Water Funds to
pay off the 2010A revenue bond to save on interest expense. Balance is $700,000 at December
31, 2023.
Interfund receivables and payables of the HRA component unit at December 31, 2023 are as
follows:
Interfund Interfund
Receivables Payables
Due From/Due To:
Major Funds:
General Fund $8,772,506 $ -
Lake Pointe - 95,303
Gateway Northeast - 1,872,606
BAE Hazardous Sub District - 2,390,888
Locke Point Park - 4,191,974
Nonmajor Governmental Funds:
Gateway East - 69,586
Gateway West - 146,265
Moon Plaza - 5,884
Total $8,772,506 $8,772,506
The above balances are not expected to be eliminated within one year of December 31, 2023.
91
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
Interfund Transfers:
Transfer In Transfer Out
Governmental Funds:
Major Funds:
General Fund (3) (4) (5) $330,100 $ -
Street Improvements (5) - 106,600
Park Improvements (4) (1) - 682,655
Debt Service (1) 547,655 -
Nonmajor Governmental Funds:
Capital Equipment (2) 250,000 -
Total governmental funds 1,127,755 789,255
Proprietary Funds:
Liquor (2) (3) - 338,500
Total $1,127,755 $1,127,755
(1) Transfer of $547,655 to Debt Service Fund from Park improvements for 1st interest payment on PSIP bond.
(2) Transfer from Liquor fund to Capital Equipment ($250,000).
(3) Transfer of $88,500 from Liquor Fund to finance General Fund activities
(4) Transfer of $135,000 from the Park Improvements Fund to the General Fund cover employee time
spent on park improvements
(5) Transfer of $106,600 from the Street Improvements Fund to finance General Fund activities.
92
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
13. Fund Balance
A. Fund Balance Classifications
At December 31, 2023, a summary of the governmental fund balance classifications are as follows:
Debt Street Community Park CARES/ Other Total Component
General Service Improvements Investment Improvements ARPA Governmental City Unit
Nonspendable:
Inventory $83,152 $ - $ - $ - $ - $ - $ - $83,152 $ -
Prepaid items 175,500 - - - - - 32,211 207,711 -
Mortgage loan receivable - - - - - - - - 3,548,471
Total nonspendable 258,652 - - - - - 32,211 290,863 3,548,471
Restricted for:
Donations 88,985 - - - - - - 88,985 -
Public safety 1,292,504 - - - - - - 1,292,504 -
Debt service - 5,433,063 - - - - - 5,433,063 -
Tax increment - - - - - - - - 6,985,866
Police forfeitures - - - - - - 136,211 136,211 -
Cable television equipment - - - - - - 100,218 100,218 -
Unspent bond proceeds - - - - 15,021,631 - - 15,021,631 -
Total restricted 1,381,489 5,433,063 - - 15,021,631 - 236,429 22,072,612 6,985,866
Committed to:
ARPA programs - - - - - 70,260 - 70,260 -
Cable television programming - - - - - - 955,894 955,894 -
Recycling programs - - - - - - 97,230 97,230 -
Nature Center activities - - - - - - 224,785 224,785 -
Community investment - - - 14,197,809 - - - 14,197,809 -
Police activity - - - - - - 8,537 8,537 -
Capital equipment - - - - - - 2,389,142 2,389,142 -
Emergency reserves - - - - - - 11,741 11,741 -
Housing loan program - - - - - - - - 947,614
Total committed - - - 14,197,809 - 70,260 3,687,329 17,955,398 947,614
Assigned to:
Capital improvements - - 2,005,960 - 1,089,623 - 2,160,185 5,255,768 -
Unassigned 11,245,668 (52,451) - - - - - 11,193,217 10,178,661
Total $12,885,809 $5,380,612 $2,005,960 $14,197,809 $16,111,254 $70,260 $6,116,154 $56,767,858 $21,660,612
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, 2023, the unassigned fund balance of the General Fund was $11,245,668,
compared to its targeted unassigned fund balance of between $7,923,895 and $11,319,850.
93
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
14. Tax Increment Districts
The HRA is the administering authority for the following Tax Increment Districts:
Fiscal Retained
Year Disparity By
Established District District Name Current Original Captured Adjustments Authority
1985 6 Lake Pointe $1,117,264 $326,940 $790,324 $ - $790,324
2000 17 Gateway East 58,122 3,147 54,975 - 54,975
2007 18 Gateway West 62,781 4,430 58,351 - 58,351
2007 19 Main Street 278,896 45,628 233,268 - 233,268
2013 20 TIF 20 HSS 20A 3,246,922 276,688 2,970,234 - 2,970,234
2009 21 Gateway Northeast 800,067 28,419 771,648 - 771,648
2013 22 Northstar Transit Station 2,078,673 515,962 1,562,711 - 1,562,711
2017 23 Locke Point Park 330,247 62,486 267,761 - 267,761
2018 24 Northern Stacks VIII 230,436 115,566 114,870 - 114,870
2020 25 Holly Center 788,672 70,449 718,223 - 718,223
2023 26 Moon Plaza 50,186 46,560 3,626 - 3,626
2017 HR1/V5 Housing Replacement 2,987 208 2,779 - 2,779
1995 HR1/V6 Housing Replacement 6,530 316 6,214 - 6,214
1995 HR1/V9 Housing Replacement 3,096 286 2,810 - 2,810
1995 HR1/W1 Housing Replacement 2,964 357 2,607 - 2,607
1995 HR1/W2 Housing Replacement 2,853 286 2,567 - 2,567
1995 HR1/W6 Housing Replacement 9,392 516 8,876 - 8,876
1995 HR1/W7 Housing Replacement 3,418 170 3,248 - 3,248
1995 HR1/X8 Housing Replacement 6,711 503 6,208 - 6,208
2017 HR1/X9 Housing Replacement 4,233 164 4,069 - 4,069
1995 HR1/Y1 Housing Replacement 3,390 201 3,189 - 3,189
1995 HR1/Y2 Housing Replacement 3,521 181 3,340 - 3,340
2015 HR1/Y4 Housing Replacement 4,010 328 3,682 - 3,682
2017 HR1/Y5 Housing Replacement 3,491 251 3,240 - 3,240
2020 HR1/AA5 Housing Replacement 3,851 295 3,556 - 3,556
2020 HR1/AA7 Housing Replacement 3,762 299 3,463 - 3,463
2021 HR1/BB3 Housing Replacement 4,482 547 3,935 - 3,935
2021 HR1/BB4 Housing Replacement 3,863 350 3,513 3,513
Totals $9,114,820 $1,501,533 $7,613,287 $ - $7,613,287
Tax Capacity Values
15. Commitments and Contingencies
A. Risk Managements
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 $25,000 deductible.
94
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
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.
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, 2023, the Self Insurance Fund has accumulated equity in the amount of
$816,034 to cover future claims and losses.
B. Litigation
The City attorney and management 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 and management, 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, 2023.
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.
95
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
E. Tax Abatements – Pay-As-You-Go Tax Increment
The HRA provides tax abatements pursuant to Minnesota Statutes 469.174 to 469.1794 (Tax
Increment Financing) through a pay-as-you-go note program. Tax increment financing (TIF) can
be used to encourage private development, redevelopment, renovation and renewal, growth in low-
to-moderate-income housing, and economic development within the City. TIF captures the increase
in tax capacity and property taxes from development or redevelopment to provide funding for the
related project.
The HRA has seven tax increment pay-as-you-go agreements. The agreements are not a general
obligation of the HRA and are payable solely from available tax increment. Accordingly, these
agreements are not reflected in the financial statements of the HRA. Details of the pay-as-you-go
notes are as follows:
TIF District #6, Lake Pointe (Medtronic):
Issued in 2001 in the principal sum of $20,000,000 with an interest rate of 6.75% per annum.
Principal and interest shall be paid on August 1, 2001 and each February 1 and August 1
thereafter to and including March 1, 2026. Payments are payable solely from available tax
increment derived from the developed/redeveloped property and paid to the HRA. The pay-as-
you-go note provides for payment to the developer equal to 90% of all tax increment received in
the prior six months. The payment reimburses the developer for public improvements. The HRA
shall have no obligation to pay any unpaid balance of principal or accrued interest that may
remain after the final payment on March 1, 2026. The current year abatement (TIF note
payments) amounted to $575,922. At December 31, 2023, the principal amount outstanding on
the note was $20,000,000.
TIF District #19, Main Street:
Issued in 2008 in the principal sum of $1,500,000 with an interest rate of 7.00% per annum.
Principal and interest shall be paid on August 1, 2009 and each February 1 and August 1
thereafter to and including February 1, 2025. Payments are payable solely from available tax
increment derived from the developed/redeveloped property and paid to the HRA. The pay-as-
you-go note provides for payment to the developer equal to 90% of all tax increment received in
the prior six months. The payment reimburses the developer for certain public redevelopment
costs. The current year abatement (TIF note payments) amounted to $144,785. At December
31, 2023, the principal amount outstanding on the note was $1,471,848.
TIF District #22, Northstar – Fridley Senior Apartments
Issued in 2021 in the principal sum of $3,204,650 with an interest rate of 5.00% per annum.
Principal and interest shall be paid on August 1, 2022, and each February 1 and August 1
thereafter to and including February 1, 2043. Payments are solely from available tax increment
derived from developed/redeveloped property and paid to the HRA. The pay-as-you-go note
provides for payment to the developer equal to 90% of all increments received in the prior six
months. The HRA shall have no obligation to pay any unpaid balance of principal or accrued
interest that may remain after the final payment on February 1, 2043. Current year abatement
(TIF note payments) amounted to $251,468. At December 31, 2023, the balance outstanding
was $3,147,311.
96
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
TIF District #22, Fridley Market Apartments
Issued in 2021 in the principal sum of $2,845,250 with an interest rate of 5.00% per annum.
Principal and interest shall be paid on August 1, 2022, and each February 1 and August 1
thereafter to and including February 1, 2043. Payments are solely from available tax increment
derived from developed/redeveloped property and paid to the HRA. The pay-as-you-go note
provides for payment to the developer equal to 90% of all increments received in the prior six
months. The HRA shall have no obligation to pay any unpaid balance of principal or accrued
interest that may remain after the final payment on February 1, 2043. Current year abatement
(TIF note payments) amounted to $222,980. At December 31, 2023, the balance outstanding
was $2,750,091.
TIF District #22, Fridley City Apartments
Issued in 2023 in the principal sum of $1,222,750 with an interest rate of 5.00% per annum.
Principal and interest shall be paid on August 1, 2023, and each February 1 and August 1
thereafter to and including February 1, 2043. Payments are solely from available tax increment
derived from developed/redeveloped property and paid to the HRA. The pay-as-you-go note
provides for payment to the developer equal to 90% of all increments received in the prior six
months. The HRA shall have no obligation to pay any unpaid balance of principal or accrued
interest that may remain after the final payment on February 1, 2043. Current year abatement
(TIF note payments) amounted to $123,168. At December 31, 2023, the balance outstanding
was $1,177,873.
TIF District #24, Northern Stacks Phase VIII:
Issued in 2018 in the principal sum of $660,000 with an interest rate of 5.75% per annum.
Principal and interest shall be paid on August 1, 2020 and each February 1 and August 1
thereafter to and including February 1, 2042. Payments are payable solely from available tax
increment derived from the developed/redeveloped property and paid to the HRA. The pay-as-
you-go note provides for payment to the developer equal to 90% of all tax increment received in
the prior six months. The payment reimburses the developer for street, utilities, right-of-way, land
acquisition, and other public improvements. The HRA shall have no obligation to pay any unpaid
balance of principal or accrued interest that may remain after the final payment on February 1,
2042. Current year abatement (TIF note payments) amounted to $49,874. At December 31,
2023, the principal amount outstanding on the note was $649,970.
TIF District #25, Roers – Holly Center:
Issued in 2023 in the principal sum of $6,489,820 with an interest rate of 4.00% per annum.
Principal and interest shall be paid on August 1, 2023 and each February 1 and August 1
thereafter to and including February 1, 2049. Payments are payable solely from available tax
increment derived from the developed/redeveloped property and paid to the HRA. The pay-as-
you-go note provides for payment to the developer equal to 90% of all tax increment received in
the prior six months. The payment reimburses the developer for street, utilities, right-of-way, land
acquisition, and other public improvements. The HRA shall have no obligation to pay any unpaid
balance of principal or accrued interest that may remain after the final payment on February 1,
2049. Current year abatement (TIF note payments) amounted to $226,745. At December 31,
2023, the principal amount outstanding on the note was $6,489,820.
97
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
16. 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, 2023, there are five series outstanding issued after July 1, 1995 with an aggregate
principal amount payable of $69,818,624.
17. Deficit Fund Balances
At December 31, 2023, individual funds with a deficit fund balance are as follows:
Primary government:
Internal Service Fund:
Employee Benefits ($12,176,407)
Component unit:
Gateway Northeast ($1,863,566)
BAE Hazardous Sub District (2,303,296)
Locke Point Park (4,188,709)
Lake Pointe (93,539)
Gateway East (68,355)
Gateway West (145,366)
Northern Stacks VIII (23,492)
Moon Plaza (5,884)
18. 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, 2023 is $2,829,463. 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.
19. Construction Commitments
At December 31, 2023, the City had construction project contracts in progress. The commitments related to the
remaining contract balances amounted to $5,818,085.
98
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2023
20. Recently Issued Accounting Standards
The Governmental Accounting Standards Board (GASB) recently approved the following
statements which were not implemented for these financial statements:
Statement No. 100 Accounting Changes and Error Corrections – an amendment of GASB
Statement No. 62. The provisions of this Statement are effective for fiscal years beginning
after June 15, 2023.
Statement No. 102 Certain Risk Disclosures. The provisions of this Statement are effective
for fiscal years beginning after June 15, 2024.
Statement No. 103 Financial Reporting Model Improvements The provisions of this
Statement are effective for fiscal years beginning after June 15, 2025.
The effect these standards may have on future financial statements is not determinable at this
time.
21. Subsequent Events and Uncertainties
Subsequent events have been evaluated for recognition or disclosure through June 3, 2024, the
date the financial statements were available to be issued.
99
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100
REQUIRED SUPPLEMENTARY INFORMATION
101
Exhibit B-1
Page 1 of 4
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes and special assessments:
Current ad valorem taxes $13,844,700 $13,844,700 $13,732,933 ($111,767)
Delinquent ad valorem taxes-net of abatements 26,800 26,800 (56,804) (83,604)
Penalties and interest 12,100 12,100 34,144 22,044
Special assessments 53,300 53,300 47,216 (6,084)
Total taxes and special assessments 13,936,900 13,936,900 13,757,489 (179,411)
Licenses and permits:
Licenses:
Rental 164,000 164,000 180,527 16,527
Business 87,900 87,900 63,115 (24,785)
All other 36,600 36,600 40,885 4,285
Permits 833,300 833,300 847,243 13,943
Total licenses and permits 1,121,800 1,121,800 1,131,770 9,970
Intergovernmental revenue:
Federal grants 165,000 165,000 131,501 (33,499)
State maintenance aid 448,200 448,200 648,725 200,525
Local grants 709,400 713,400 2,141,013 1,427,613
Other state grants 199,600 234,100 297,168 63,068
Police and fire pension 640,400 747,400 749,580 2,180
Total intergovernmental revenue 2,162,600 2,308,100 3,967,987 1,659,887
Charges for services:
General government 1,358,100 1,358,100 1,390,361 32,261
Public safety 593,700 627,700 650,767 23,067
Public works 396,900 408,200 272,762 (135,438)
Community development 229,600 229,600 210,157 (19,443)
Recreation 153,200 159,200 161,847 2,647
Total charges for services 2,731,500 2,782,800 2,685,894 (96,906)
Fines and forfeits 132,200 136,200 154,274 18,074
Investment income:
Interest and dividends 176,100 176,100 262,596 86,496
Net change in the fair value of investments - - 379,501 379,501
Total investment income 176,100 176,100 642,097 465,997
Miscellaneous revenue:
Insurance and other reimbursements 30,700 33,700 120,105 86,405
Gambling tax 60,000 60,000 29,697 (30,303)
Donations 9,800 27,800 47,200 19,400
Miscellaneous 12,800 12,800 112,802 100,002
Total miscellaneous revenue 113,300 134,300 309,804 175,504
Total revenues 20,374,400 20,596,200 22,649,315 2,053,115
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2023
2023
Budgeted Amounts
See accompanying notes to required supplementary information
102
Exhibit B-1
Page 2 of 4
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Expenditures:
General government:
City management:
Mayor and council:
Current:
Personnel services $90,400 $90,400 $111,965 ($21,565)
Supplies and other charges 78,600 78,600 54,694 23,906
Total mayor and council 169,000 169,000 166,659 2,341
City manager:
Current:
Personnel services 371,300 371,300 373,844 (2,544)
Supplies and other charges 19,900 19,900 20,014 (114)
Total city manager 391,200 391,200 393,858 (2,658)
Employee resources:
Current:
Personnel services 348,100 348,100 354,777 (6,677)
Supplies and other charges 63,800 63,800 43,924 19,876
Total employee resources 411,900 411,900 398,701 13,199
Legal:
Current:
Supplies and other charges 406,600 406,600 432,076 (25,476)
Elections:
Current:
Personnel services - - 2 (2)
Supplies and other charges 16,300 16,300 17,197 (897)
Total elections 16,300 16,300 17,199 (899)
Communications and engagement
Current:
Personnel services 140,700 140,700 140,527 $173
Supplies and other charges 71,300 75,300 61,712 13,588
Total communications and engagement 212,000 216,000 202,239 13,761
City clerk/records:
Personnel services 235,500 235,500 234,066 1,434
Supplies and other charges 22,600 22,600 25,351 (2,751)
Total city clerk/records 258,100 258,100 259,417 (1,317)
Total city management 1,865,100 1,869,100 1,870,149 (1,049)
Finance:
Accounting:
Current:
Personnel services 685,700 685,700 670,583 15,117
Supplies and other charges 94,200 94,200 92,569 1,631
Total accounting 779,900 779,900 763,152 16,748
Assessing:
Current:
Personnel services 288,600 288,600 279,348 9,252
Supplies and other charges 18,000 18,000 12,779 5,221
Total assessing 306,600 306,600 292,127 14,473
Information Technology:
Current:
Personnel services 419,400 419,400 275,269 144,131
Supplies and other charges 339,300 339,300 329,679 9,621
Total Information Technology 758,700 758,700 604,948 153,752
Total finance 1,845,200 1,845,200 1,660,227 184,973
Emergency reserves:
Current:
Supplies and other charges 88,300 88,300 - 88,300
Nondepartmental:
Current:
Supplies and other charges 23,700 23,700 24,527 (827)
Total nondepartmental 23,700 23,700 24,527 (827)
2023
Budgeted Amounts
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2023
See accompanying notes to required supplementary information
103
Exhibit B-1
Page 3 of 4
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Expenditures: (continued)
General government: (continued)
Facilities management:
Current:
Personnel services $310,500 $310,500 $303,894 $6,606
Supplies and other charges 426,300 426,300 502,721 (76,421)
Total facilities management 736,800 736,800 806,615 (69,815)
Total general government 4,559,100 4,563,100 4,361,518 201,582
Public safety:
Police:
Police protection:
Current:
Personnel services 7,477,200 7,517,200 7,593,100 (75,900)
Supplies and other charges 675,700 751,700 800,829 (49,129)
Total police protection 8,152,900 8,268,900 8,393,929 (125,029)
Emergency management:
Current:
Supplies and other charges 14,600 14,600 15,311 (711)
Total police 8,167,500 8,283,500 8,409,240 (125,740)
Fire:
Fire protection:
Current:
Personnel services 1,337,600 1,377,600 1,320,425 57,175
Supplies and other charges 472,200 511,200 552,717 (41,517)
Total fire protection 1,809,800 1,888,800 1,873,142 15,658
Rental inspections:
Current:
Personnel services 244,800 244,800 242,210 2,590
Supplies and other charges 11,000 11,000 7,430 3,570
Total rental inspections 255,800 255,800 249,640 6,160
Total public safety 10,233,100 10,428,100 10,532,022 (103,922)
Public works:
Engineering:
Current:
Personnel services 380,700 380,700 385,873 (5,173)
Supplies and other charges 120,200 120,200 96,702 23,498
Total engineering 500,900 500,900 482,575 18,325
Lighting:
Current:
Personnel services 18,700 18,700 18,260 440
Supplies and other charges 256,500 256,500 189,027 67,473
Total lighting 275,200 275,200 207,287 67,913
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2023
2023
Budgeted Amounts
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
See accompanying notes to required supplementary information
104
Exhibit B-1
Page 4 of 4
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Expenditures: (continued)
Park maintenance:
Current:
Personnel services 856,300 856,300 827,700 28,600
Supplies and other charges 233,300 237,300 210,553 26,747
Total park maintenance 1,089,600 1,093,600 1,038,253 55,347
Street:
Current:
Personnel services 917,500 924,800 952,330 (27,530)
Supplies and other charges 598,700 598,700 617,121 (18,421)
Total street 1,516,200 1,523,500 1,569,451 (45,951)
Fleet services:
Current:
Personnel services 427,200 427,200 417,706 9,494
Supplies and other charges 42,900 42,900 67,733 (24,833)
Total garage 470,100 470,100 485,439 (15,339)
Forestry
Current:
Supplies and other charges 81,900 87,400 76,187 11,213
Total forestry 81,900 87,400 76,187 11,213
Total public works 3,933,900 3,950,700 3,859,192 91,508
Community development:
Building inspection:
Current:
Personnel services $358,000 $358,000 $351,690 $6,310
Supplies and other charges 138,100 138,100 116,329 21,771
Total building inspection 496,100 496,100 468,019 28,081
Planning:
Current:
Personnel services 737,000 737,000 734,580 2,420
Supplies and other charges 205,400 205,400 177,186 28,214
Total planning 942,400 942,400 911,766 30,634
Total community development 1,438,500 1,438,500 1,379,785 58,715
Parks and recreation
Current:
Personnel services 681,800 687,800 647,145 40,655
Supplies and other charges 208,100 208,100 161,777 46,323
Total parks and recreation 889,900 895,900 808,922 86,978
Total expenditures 21,054,500 21,276,300 20,941,439 334,861
Excess (deficiency) of revenues over
(under) expenditures (680,100) (680,100) 1,707,876 2,387,976
Other financing sources (uses):
Transfers in 680,100 680,100 330,100 (350,000)
Total other financing sources 680,100 680,100 330,100 (350,000)
Net change in fund balance $ - $ - 2,037,976 $2,037,976
Fund balance - January 1 10,847,833
Fund balance - December 31 $12,885,809
Budgeted Amounts
2023
For The Year Ended December 31, 2023
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
See accompanying notes to required supplementary information
105
Exhibit B-2
2023 2022 2021 2020 2019 2018
Total OPEB Liability:
Service cost 37,191$ 41,774$ 40,554$ 29,976$ 24,817$ 30,073$
Interest cost 31,042 30,625 46,853 53,743 36,281 14,035
Addition of disabled police officers - - - - - 659,344
Changes in benefit terms - - - - - -
Differences between expected and actual experience 828,651 - (272,762) - 345,222 -
Changes in assumptions (403,871) - 142,709 149,391 (61,029) -
Benefit payments (54,737) (39,292) (46,423) (38,283) (32,982) (15,301)
Net change in total OPEB liability 438,276 33,107 (89,069) 194,827 312,309 688,151
Total OPEB liability - beginning 1,542,143 1,509,036 1,598,105 1,403,278 1,090,969 402,818
Total OPEB liability - ending 1,980,419$ 1,542,143$ 1,509,036$ 1,598,105$ 1,403,278$ 1,090,969$
Covered-employee payroll $12,650,589 $11,843,778 $11,498,814 $10,759,599 $10,446,213 $10,037,870
Total OPEB liability as a percentage of covered payroll 16.0% 13.0% 13.1% 14.9% 13.4% 10.9%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2018 and
is intended to show a ten year trend. Additional years will be added as they become available.
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
Last Ten Years
See accompanying notes to required supplementary information
106
Exhibit B-3
City's
State's Proportionate City's
Proportionate Share of the Net Proportionate
City's City's Share (Amount) Pension Liability and Share of the
Proportionate Proportionate of the Net the State's Proportionate Net Pension Plan Fiduciary
Share Share (Amount) Pension Share of the Net Liability as a Net Position as
Measurement Fiscal Year (Percentage) of of the Net Liability Pension Liability Percentage of its a Percentage
Date Ending the Net Pension Pension Associated with Associated with Covered Covered of the Total
June 30 December 31 Liability Liability (a) City (b) City (a+b) Payroll (c) Payroll ((a+b)/c) Pension Liability
2015 2015 0.1004% $5,203,249 $ - $5,203,249 $5,903,611 88.1% 78.2%
2016 2016 0.1018% 8,265,655 107,922 8,373,577 6,281,307 133.3% 68.9%
2017 2017 0.0979% 6,249,871 78,569 6,328,440 6,269,774 100.9% 75.9%
2018 2018 0.0976% 5,414,448 177,601 5,592,049 6,461,494 86.5% 79.5%
2019 2019 0.0919% 5,080,945 157,993 5,238,938 6,505,506 80.5% 80.2%
2020 2020 0.0946% 5,671,702 174,864 5,846,566 6,747,539 86.6% 79.1%
2021 2021 0.0987% 4,214,932 128,697 4,343,629 7,107,615 61.1% 87.0%
2022 2022 0.0982% 7,777,472 228,060 8,005,532 7,353,484 108.9% 76.7%
2023 2023 0.1007% 5,631,031 155,264 5,786,295 8,009,849 72.2% 83.1%
* The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY* -
GENERAL EMPLOYEES RETIREMENT FUND
Last Ten Years
See accompanying notes to the required supplementary information.
107
Exhibit B-4
Statutorily Contributions in Contribution Contributions as a
Required Relation to the Deficiency Covered Percentage of
Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered
Ending (a) Contribution (b) (a-b) (c) Payroll (b/c)
December 31, 2015 $466,069 $466,069 $ - $6,214,253 7.5%
December 31, 2016 458,639 458,639 - 6,115,187 7.5%
December 31, 2017 479,410 479,410 - 6,392,134 7.5%
December 31, 2018 480,597 480,597 - 6,407,960 7.5%
December 31, 2019 495,872 495,872 - 6,611,626 7.5%
December 31, 2020 525,081 525,081 - 7,001,082 7.5%
December 31, 2021 541,932 541,932 - 7,225,769 7.5%
December 31, 2022 569,464 569,464 - 7,592,844 7.5%
December 31, 2023 625,623 625,623 - 8,341,627 7.5%
* The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is
intended to show a ten year trend. Additional years will be reported as they become available.
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PENSION CONTRIBUTIONS* - GENERAL EMPLOYEES RETIREMENT FUND
Last Ten Years
See accompanying notes to the required supplementary information.
108
Exhibit B-5
City's
State's Proportionate City's
Proportionate Share of the Net Proportionate
City's City's Share (Amount) Pension Liability and Share of the
Proportionate Proportionate of the Net the State's Proportionate Net Pension Plan Fiduciary
Share Share (Amount) Pension Share of the Net Liability as a Net Position as
Measurement Fiscal Year (Percentage) of of the Net Liability Pension Liability Percentage of its a Percentage
Date Ending the Net Pension Pension Associated with Associated with Covered Covered of the Total
June 30 December 31 Liability Liability (a) City (b) City (a+b)Payroll (c) Payroll ((a+b)/c) Pension Liability
2015 2015 0.4170% $4,738,096 $ - $4,738,096 $3,821,428 124.0%86.6%
2016 2016 0.4050% 16,253,355 - 16,253,355 3,898,494 416.9%63.9%
2017 2017 0.3710% 5,008,941 - 5,008,941 3,812,191 131.4%85.4%
2018 2018 0.4185% 4,460,779 - 4,460,779 4,265,364 104.6%88.8%
2019 2019 0.4147% 4,414,900 - 4,414,900 4,373,847 100.9%89.3%
2020 2020 0.4043% 5,329,107 125,537 5,454,644 4,560,658 119.6%87.2%
2021 2021 0.3895% 3,006,527 135,161 3,141,688 4,603,126 68.3%93.7%
2022 2022 0.4048% 17,615,297 769,563 18,384,860 4,917,823 373.8%70.5%
2023 2023 0.3983% 6,878,123 277,026 7,155,149 5,230,355 136.8%86.5%
* The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY* -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
Last Ten Years
See accompanying notes to the required supplementary information.
109
Exhibit B-6
Statutorily Contributions in Contribution Contributions as a
Required Relation to the Deficiency Covered Percentage of
Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered
Ending (a) Contribution (b) (a-b) (c) Payroll (b/c)
December 31, 2015 $644,283 $644,283 $ - $3,977,056 16.20%
December 31, 2016 606,767 606,767 - 3,745,475 16.20%
December 31, 2017 653,014 653,014 - 4,030,951 16.20%
December 31, 2018 700,029 700,029 - 4,321,166 16.20%
December 31, 2019 751,753 751,753 - 4,435,121 16.95%
December 31, 2020 807,829 807,829 - 4,564,003 17.70%
December 31, 2021 839,373 839,373 - 4,742,218 17.70%
December 31, 2022 903,357 903,357 - 5,103,712 17.70%
December 31, 2023 946,028 946,028 - 5,344,791 17.70%
* The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is
intended to show a ten year trend. Additional years will be reported as they become available.
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PENSION CONTRIBUTIONS* - PUBLIC EMPLOYEES POLICE AND FIRE FUND
Last Ten Years
See accompanying notes to the required supplementary information.
110
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2023
A. LEGAL COMPLIANCE – 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.
B. OPEB INFORMATION
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No.
75 to pay related benefits.
2023 Changes
No benefit changes.
The health care trend rates were changed to better anticipate short term and long term
medical increases.
The mortality tables were updated from the Pub-2010 Public Retirement Plans Headcount-
Weighted Mortality Tables (General, Safety) with MP-2020 Generational Improvement Scale
to the Pub-2010 Public Retirement Plans Headcount-Weighted Mortality Tables (General,
Safety) with MP-2021 Generational Improvement Scale.
The inflation rate was changed from 2.00% to 2.50%.
The discount rate was changed from 2.00% to 4.00%.
The retirement, withdrawal, and salary increase rates for public safety employees were
updated to reflect the latest experience study.
These changes decreased the liability $403,871.
2022 Changes
No benefit changes.
No assumptions changes.
2021 Changes
No benefit changes.
The discount rate was changed from 2.90% to 2.00%.
The mortality tables were updated from the RP-2014 White Collar Mortality Tables with MP-
2018 Generational Improvement Scale to Pub-2010 Public retirement Plans Headcount –
Weighted Mortality Tables (General, Safety) with MP-2020 Generational Improvement Scale.
2020 Changes
No benefit changes.
The discount rate was changed from 3.80% to 2.90%.
2019 Changes
The health care trend rates were changed to better anticipate short term and long term
medical increases.
The mortality tables were updated from the RP-2014 White Collar Mortality Tables with MP-
2016 Generational Improvement Scale (with Blue Collar adjustment for Police and Fire
Personnel) to the RP-2014 White Collar Mortality Tables with MP-2018 Generational
Improvement Scale (with Blue Collar adjustment for Police and Fire Personnel).
The retirement and withdrawal tables for Police and Fire Personnel were updated.
The discount rate was changed from 3.30% to 3.80%.
111
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2023
C. PENSION INFORMATION
PERA – General Employees Retirement Fund
2023 Changes in Actuarial Assumptions:
The investment return assumption and single discount rate were changed from 6.50% to
7.00%.
2023 Changes in Plan Provisions:
An additional one-time direct state aid contribution of $170.1 million was contributed to the
Plan on October 1, 2023.
The vesting period of those hired after June 30, 2010, was changed from five years of
allowable service to three years of allowable service.
The benefit increase delay for early retirements on or after January 1, 2024, was eliminated.
A one-time, non-compounding benefit increase of 2.50% minus the actual 2024 adjustment
will be payable in a lump sum for calendar year 2024 by March 31, 2024.
2022 Changes
The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
2021 Changes
The investment return and single discount rates were changed from 7.50% to 6.50% for
financial reporting purposes.
The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
2020 Changes
The price inflation assumption was decreased from 2.50% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.00%.
Assumed salary increase rates were decreased 0.25% and assumed rates of retirement were
changed resulting in more unreduced (normal) retirements and slightly fewer Rule of 90 and
early retirements. Assumed rates of termination and disability were also changed.
Base mortality tables were changed from RP-2014 tables to Pub-2010 tables, with
adjustments.
The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
The spouse age difference was changed from two years older for females to one year older.
The assumed number of married male new retirees electing the 100% Joint & Survivor option
changed from 35% to 45%. The assumed number of married female new retirees electing
the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of
married new retirees electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions:
Augmentation for current privatized members was reduced to 2.0% for the period July 1,
2020 through December 31, 2023 and 0.0% after. Augmentation was eliminated for
privatizations occurring after June 30, 2020.
2019 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2017 to MP-2018
Changes in the Plan Provisions
112
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2023
The employer supplemental contribution was changed prospectively, decreasing from $31
million to $21 million per year. The State’s special funding contribution was changed
prospectively, requiring $16 million due per year through 2031.
2018 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2015 to MP-2017.
The assumed benefit increase was changed from 1.00% per year through 2044 and 2.50%
per year thereafter to 1.25% per year.
2017 Changes
Changes in Actuarial Assumptions:
The Combined Service Annuity (CSA) loads were changed from 0.8 % for active members
and 60% for vested and non-vested deferred members. The revised CSA loads are now
0.0% for active member liability, 15.0% for vested deferred member liability and 3.0% for non-
vested deferred member liability.
The assumed post-retirement benefit increase rate was changed from 1.0% per year for all
years to 1.0% per year through 2044 and 2.5% per year thereafter.
2016 Changes
Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2035 and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
was changed from 7.9% to 7.5%.
Other assumptions were changed pursuant to the experience study dated June 30, 2015.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25%
to 3.25% for payroll growth and 2.50% for inflation.
PERA – Public Employees Police and Fire Fund
2023 Changes in Actuarial Assumptions:
The investment return assumption was changed from 6.50% to 7.00%.
The single discount rate changed from 5.40% to 7.00%
2023 Changes in Plan Provisions:
An additional one-time direct state aid contribution of $19.4 million was contributed to the
Plan on October 1, 2023.
Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year
vesting schedule to a graded 10-year vesting schedule, with 50% vesting after five years,
increasing incrementally to 100% after 10 years.
A one-time, non-compounding benefit increase of 3.00% will be payable in a lump sum for
calendar year 2024 by March 31, 2024.
Psychological treatment is required effective July 1, 2023, prior to approval for a duty
disability benefit for a psychological condition relating to the member’s occupation.
The total and permanent duty disability benefit was increased, effective July 1, 2023.
113
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2023
2022 Changes
The single discount rate changed from 6.50% to 5.4%.
The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
2021 Changes
The investment return and single discount rates were changed from 7.50% to 6.50% for
financial reporting purposes.
The inflation assumption was changed from 2.50% to 2.25%.
The payroll growth assumption was changed from 3.25% to 3.00%.
The base mortality tables for healthy annuitants, disabled annuitants and employees were
changed from RP-2014 tables to Pub-2010 Public Safety Mortality tables. The mortality
improvement scale was changed from MP-2019 to MN-2020.
Assumed salary increase and retirement rates were modified as recommended in the July 14,
2020 experience study. The changes result in a decrease in gross salary increase rates,
slightly more unreduced retirements and fewer assumed early retirements.
Assumed rates of withdrawal were changed from select and ultimate rates to service-based
rates. The changes result in more assumed terminations.
Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49.
Overall, proposed rates result in more projected disabilities.
Assumed percent married for active female members was changed from 60% to 70%.
2020 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2018 to MP-2019.
2019 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2017 to MP-2018
Changes in the Plan Provisions:
There have been no changes since the prior valuation.
2018 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2016 to MP-2017.
2017 Changes
Changes in Actuarial Assumptions:
The single discount rate was changed from 5.6% to 7.5%.
Assumed salary increases were changed as recommended in the June 30, 2016 experience
study. The net effect is proposed rates that average 0.34 % lower than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
114
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2023
The Combined Service Annuity (CSA) load was 30% for vested and non-vested deferred
members. The CSA has been changed to 33% for vested members and 2% for non-vested
members.
The base mortality table for healthy annuitants was changed from the RP-2000 fully
generational table to the RP-2014 fully generational table (with a base year of 2006), with
male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from
Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed
from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees.
Assumed termination rates were decreased to 3.0% for the first three years of service. Rates
beyond the select period of three years were adjusted, resulting in more expected
terminations overall.
Assumed percentage of married female members was decreased from 65% to 60%.
Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four
years older) to the assumption that males are two years older than females.
The assumed percentage of female members electing Joint and Survivor annuities was
increased.
The assumed post-retirement benefit increase rate was changed from 1.00 perfect for all
years to 1.00% per year through 2064 and 2.50% thereafter.
2016 Changes
Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2037 and 2.5% thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
changed from 7.9% to 5.6%.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25%
to 3.25% for payroll growth and 2.50% for inflation.
115
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116
COMBINING AND INDIVIDUAL FUND STATEMENTS AND
SCHEDULES
117
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118
SPECIAL REVENUE FUNDS
Special Revenue Funds account for revenues derived from specific taxes or other earmarked
revenue sources. They are usually required by statute or local ordinance and/or resolution to
finance particular functions, activities or governments.
CAPITAL PROJECT FUNDS
Capital Project Funds are used to account for the resources expended to acquire
permanent or long-term assets.
119
Exhibit C-1
Special Revenue Capital Project
Cash and investments $1,398,889 $4,147,645 $5,546,534
Receivables:
Accounts 95,058 - 95,058
Taxes 12,405 820 13,225
Special assessments - 67,338 67,338
Due from other governments 129,600 4,949 134,549
Due from component unit - 434,972 434,972
Prepaids 32,211 - 32,211
Total assets $1,668,163 $4,655,724 $6,323,887
Liabilities:
Accounts payable $40,778 $26,498 $67,276
Due to other funds 29,133 - 29,133
Deposits payable 2,150 - 2,150
Due to other governments 283 - 283
Salaries payable 35,101 - 35,101
Total liabilities 107,445 26,498 133,943
Deferred inflows of resources:
Unavailable revenue 5,632 68,158 73,790
Fund balance:
Nonspendable 32,211 - 32,211
Restricted 236,429 - 236,429
Committed 1,286,446 2,400,883 3,687,329
Assigned - 2,160,185 2,160,185
Total fund balance 1,555,086 4,561,068 6,116,154
Total liabilities, deferred inflows
of resources, and fund balance $1,668,163 $4,655,724 $6,323,887
Assets
Total Nonmajor
Governmental
Funds
CITY OF FRIDLEY, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2023
Liabilities, Deferred Inflows of Resources, and Fund Balance
120
Exhibit C-2
Special Capital
Revenue Project
Revenues:
Taxes $495,795 $74,000 $569,795
Special assessments - 28,792 28,792
Licenses and permits 221,068 - 221,068
Intergovernmental revenue 151,294 1,015,000 1,166,294
Charges for services 555,299 2,500 557,799
Reimbursements 200,034 - 200,034
Fines and forfeits 41,652 - 41,652
Investment income (loss) 78,105 204,274 282,379
Contributions and donations 18,041 - 18,041
Miscellaneous 4,140 25,406 29,546
Total revenues 1,765,428 1,349,972 3,115,400
Expenditures:
Current:
General government 819,366 375,153 1,194,519
Public safety 236,871 762,750 999,621
Public works - 13,358 13,358
Parks and recreation 715,273 26,324 741,597
Community development - 6,360 6,360
Capital outlay 24,245 736,085 760,330
Debt service:
Principal - 75,908 75,908
Interest and other charges - 22,107 22,107
Total expenditures 1,795,755 2,018,045 3,813,800
Excess (deficiency) of revenues over (under) expenditures (30,327) (668,073) (698,400)
Other financing sources (uses):
Proceeds from sale of capital assets - 188,057 188,057
Lease issuance - 592,308 592,308
Transfers in - 250,000 250,000
Total other financing sources (uses) - 1,030,365 1,030,365
Net change in fund balance (30,327)362,292 331,965
Fund balance - January 1 1,585,413 4,198,776 5,784,189
Fund balance - December 31 $1,555,086 $4,561,068 $6,116,154
Total Nonmajor
Governmental
Funds
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2023
121
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122
NONMAJOR GOVERNMENTAL FUNDS
123
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124
NONMAJOR SPECIAL REVENUE FUNDS
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.
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.
125
Exhibit C-3
Assets Cable TV
Solid Waste
Abatement
Drug and
Gambling
Forfeiture Police Activity
Springbrook
Nature Center
Totals
Nonmajor
Special
Cash and investments $1,005,163 $17,018 $135,536 $ - $241,172 $1,398,889
Receivables:
Accounts 63,676 30,707 675 - - 95,058
Taxes - - - - 12,405 12,405
Due from other governments - 75,971 - 53,629 - 129,600
Prepaids 32,211 - - - - 32,211
Total assets $1,101,050 $123,696 $136,211 $53,629 $253,577 $1,668,163
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $5,180 $24,308 $ - $9,659 $1,631 $40,778
Due to other funds - - - 29,133 - 29,133
Deposits payable - - - - 2,150 2,150
Due to other governments - - - - 283 283
Salaries payable 7,547 2,158 - 6,300 19,096 35,101
Total liabilities 12,727 26,466 0 45,092 23,160 107,445
Deferred inflows of resources:
Unavailable revenue - - - - 5,632 5,632
Fund balance:
Nonspendable 32,211 - - - - 32,211
Restricted 100,218 - 136,211 - - 236,429
Committed 955,894 97,230 - 8,537 224,785 1,286,446
Total fund balance 1,088,323 97,230 136,211 8,537 224,785 1,555,086
Total liabilities, deferred inflows
of resources, and fund balance $1,101,050 $123,696 $136,211 $53,629 $253,577 $1,668,163
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2023
126
Exhibit C-4
Cable TV
Solid Waste
Abatement
Drug and
Gambling
Forfeiture Police Activity
Springbrook
Nature Center
Totals
Nonmajor
Special
Revenue Funds
Revenues:
Taxes $ - $ - $ - $ - $495,795 $495,795
Licenses and permits 221,068 - - - - 221,068
Intergovernmental revenue - 151,294 - - - 151,294
Charges for services 44,214 327,102 - - 183,983 555,299
Reimbursements - - - 200,034 - 200,034
Fines and forfeits - - 41,652 - - 41,652
Investment income (loss) 67,387 625 - - 10,093 78,105
Contributions and donations - - - - 18,041 18,041
Miscellaneous - 3,109 - - 1,031 4,140
Total revenues 332,669 482,130 41,652 200,034 708,943 1,765,428
Expenditures:
Current:
General government 347,697 471,669 - - - 819,366
Public safety - - 22,775 214,096 - 236,871
Parks and recreation - - - - 715,273 715,273
Capital Outlay 24,245 - - - - 24,245
Total expenditures 371,942 471,669 22,775 214,096 715,273 1,795,755
Excess (deficiency) of revenues
over (under) expenditures (39,273) 10,461 18,877 (14,062) (6,330) (30,327)
Fund balance - January 1 1,127,596 86,769 117,334 22,599 231,115 1,585,413
Fund balance - December 31 $1,088,323 $97,230 $136,211 $8,537 $224,785 $1,555,086
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2023
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128
NONMAJOR CAPITAL PROJECT FUNDS
Special Assessment Construction Capital Projects Fund - is established 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.
Building Improvements Fund - is used to account for capital improvements and
purchases.
Information System Improvement Fund - is established to account for the
purchase of new equipment and replacement equipment such as computers,
local area and wide area network equipment, printers, peripheral devices,
telecommunications improvements, copiers and software.
Capital Equipment Fund - is used to account for the purchase and repair of major
capital equipment.
129
Exhibit C-5
Assets
Special
Assessment
Construction
Capital Projects
Building
Improvements
Information
System
Improvement
Capital
Equipment
Totals
Nonmajor
Capital Project
Funds
Cash and investments $11,741 $1,403,739 $335,052 $2,397,113 $4,147,645
Receivables:
Taxes 820 - - - 820
Special assessments 67,338 - - - 67,338
Due from other governments - 165 - 4,784 4,949
Due from component unit - 434,972 - - 434,972
Total assets $79,899 $1,838,876 $335,052 $2,401,897 $4,655,724
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $ - $12,600 $1,143 $12,755 $26,498
Total liabilities - 12,600 1,143 12,755 26,498
Deferred inflows of resources:
Unavailable revenue 68,158 - - - 68,158
Fund balance:
Committed 11,741 - - 2,389,142 2,400,883
Assigned - 1,826,276 333,909 - 2,160,185
Total fund balance 11,741 1,826,276 333,909 2,389,142 4,561,068
Total liabilities, deferred inflows
of resources, and fund balance $79,899 $1,838,876 $335,052 $2,401,897 $4,655,724
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2023
The accompanying notes are an integral part of these financial statements.
130
Exhibit C-6
Special
Assessment
Construction
Capital Projects
Building
Improvements
Information
System
Improvement
Capital
Equipment
Totals
Nonmajor
Capital Project
Funds
Revenues:
Taxes $ - $ - $74,000 $ - $74,000
Special assessments 28,792 - - - 28,792
Intergovernmental revenue - - 250,000 765,000 1,015,000
Charges for services - - 2,500 - 2,500
Investment income (loss) - 87,564 16,949 99,761 204,274
Miscellaneous - 17,961 - 7,445 25,406
Total revenues 28,792 105,525 343,449 872,206 1,349,972
Expenditures:
Current:
General government 53,365 33,272 288,052 464 375,153
Public safety - - - 762,750 762,750
Public works - - - 13,358 13,358
Parks and recreation - - - 26,324 26,324
Community development - - - 6,360 6,360
Debt Service:
Principal - - - 75,908 75,908
Interest and other charges - - - 22,107 22,107
Capital outlay - 12,600 111,702 611,783 736,085
Total expenditures 53,365 45,872 399,754 1,519,054 2,018,045
Excess (deficiency) of revenues
over (under) expenditures (24,573) 59,653 (56,305) (646,848) (668,073)
Other financing sources (uses):
Proceeds from sale of capital assets - - - 188,057 188,057
Lease issuance - - - 592,308 592,308
Transfers in - - - 250,000 250,000
Total other financing sources (uses) - - - 1,030,365 1,030,365
Net change in fund balance (24,573) 59,653 (56,305) 383,517 362,292
Fund balance - January 1 36,314 1,766,623 390,214 2,005,625 4,198,776
Fund balance - December 31 $11,741 $1,826,276 $333,909 $2,389,142 $4,561,068
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2023
The accompanying notes are an integral part of these financial statements.
131
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132
INDIVIDUAL BUDGET TO ACTUAL STATEMENTS
SPECIAL REVENUE FUNDS
133
Exhibit D-1
Actual
Original Final Amounts
Revenues:
Licenses - franchise fee $249,900 $249,900 $221,068
Charges for services 78,400 78,400 44,214
Investment income:
Interest and dividends 21,000 21,000 17,723
Net change in the fair value of investments - - 49,664
Total revenues 349,300 349,300 332,669
Expenditures:
Current:
General government:
Personal services 193,300 193,300 191,125
Supplies and other charges 249,100 249,100 156,572
Capital Outlay - - 24,245
Total expenditures 442,400 442,400 371,942
Excess (deficiency) of revenues over
(under) expenditures ($93,100)($93,100)(39,273)
Fund balance - January 1 1,127,596
Fund balance - December 31 $1,088,323
Budgeted Amounts
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, 2023
134
Exhibit D-2
Actual
Original Final Amounts
Revenues:
Intergovernmental revenue:
State $126,800 $126,800 $151,294
Charges for services 322,300 327,300 327,102
Investment income:
Interest and dividends 700 700 294
Net change in the fair value of investments - - 331
Miscellaneous 1,500 1,500 3,109
Total revenues 451,300 456,300 482,130
Expenditures:
Current:
General government:
Personal services 64,000 64,000 54,538
Supplies and other charges 396,400 401,400 417,131
Total expenditures 460,400 465,400 471,669
Excess (deficiency) of revenues
over (under) expenditures ($9,100)($9,100)10,461
Fund balance - January 1 86,769
Fund balance - December 31 $97,230
CITY OF FRIDLEY, MINNESOTA
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2023
SCHEDULE OF REVENUES, EXPENDITURES AND
Budgeted Amounts
SPECIAL REVENUE FUND - SOLID WASTE ABATEMENT FUND
135
Exhibit D-3
Actual
Original Final Amounts
Revenues:
Charges for services $218,800 $218,800 $200,034
Expenditures:
Public safety:
Personal services 163,500 163,500 163,574
Supplies and other charges 55,100 55,100 50,522
Total expenditures 218,600 218,600 214,096
Excess (deficiency) of revenues
over (under) expenditures $200 $200 (14,062)
Fund balance - January 1 22,599
Fund balance - December 31 $8,537
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - POLICE ACTIVITY FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Budgeted Amounts
For The Year Ended December 31, 2023
136
Exhibit D-4
Actual
Original Final Amounts
Revenues:
Taxes $498,100 $498,100 $495,795
Charges for service 171,900 171,900 183,983
Investment income:
Interest and dividends 2,400 2,400 3,093
Net change in the fair value of investments - - 7,000
Contributions and donations 21,800 21,800 18,041
Miscellaneous 1,500 1,500 1,031
Total revenues 695,700 695,700 708,943
Expenditures:
Current:
Parks, recreation and naturalist
Personal services 597,400 597,400 585,365
Supplies and other charges 125,800 125,800 129,908
Total expenditures 723,200 723,200 715,273
Excess (deficiency) of revenues
over (under) expenditures ($27,500)($27,500)(6,330)
Fund balance - January 1 231,115
Fund balance - December 31 $224,785
Budgeted Amounts
For The Year Ended December 31, 2023
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - SPRINGBROOK NATURE CENTER FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
137
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138
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 and pension 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.
139
Exhibit E-1
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31, 2023
Employee Benefits Self Insurance Total
Assets:
Cash and investments $1,748,532 $835,838 $2,584,370
Accounts receivable - 3,880 3,880
Total assets 1,748,532 839,718 2,588,250
Deferred outflows of resources:
Pension related 12,014,266 - 12,014,266
Liabilities:
Current liabilities:
Accounts payable - 5,435 5,435
Due to other governments - 18,249 18,249
Payroll deductions payable 136,328 - 136,328
Compensated absences payable - current portion 857,229 - 857,229
Total current liabilities 993,557 23,684 1,017,241
Noncurrent liabilities:
Compensated absences payable - long-term portion 433,454 - 433,454
Net pension liability 12,509,154 - 12,509,154
Total liabilities 13,936,165 23,684 13,959,849
Deferred inflows of resources:
Pension related 12,003,040 - 12,003,040
Net position:
Unrestricted (12,176,407) 816,034 (11,360,373)
Total net position ($12,176,407) $816,034 ($11,360,373)
140
Exhibit E-2
Employee Benefits Self Insurance Total
Operating revenues:
Charges for services $1,653,207 $234,201 $1,887,408
Operating expenses:
Personal services 3,256,053 -3,256,053
Supplies and other charges 2,659 337,760 340,419
Total operating expenses 3,258,712 337,760 3,596,472
Operating income (loss)(1,605,505)(103,559) (1,709,064)
Nonoperating revenues:
Investment income (loss)95,208 58,541 153,749
Intergovernmental 19,860 - 19,860
Insurance reimbursement - 19,084 19,084
Total nonoperating revenues 115,068 77,625 192,693
Change in net position (1,490,437)(25,934) (1,516,371)
Net position - January 1 (10,685,970)841,968 (9,844,002)
Net position - December 31 ($12,176,407)$816,034 ($11,360,373)
For The Year Ended December 31, 2023
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
141
Exhibit E-3
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
Employee Benefits Self Insurance Total
Cash flows from operating activities:
Receipts from interfund services provided $1,653,207 $237,028 $1,890,235
Payment to suppliers (2,659) (379,328) (381,987)
Payment to employees (1,589,830) - (1,589,830)
Net cash flows from operating activities 60,718 (142,300) (81,582)
Cash flows from noncapital financing activities:
Intergovernmental revenue 19,860 - 19,860
Cash flows from capital and related
financing activities:
Insurance reimbursement - 19,084 19,084
Cash flows from investing activities:
Investment income 95,208 58,541 153,749
Net increase (decrease) in cash and
cash equivalents 175,786 (64,675) 111,111
Cash and cash equivalents - January 1 1,572,746 900,513 2,473,259
Cash and cash equivalents - December 31 $1,748,532 $835,838 $2,584,370
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) ($1,605,505) ($103,559) ($1,709,064)
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities:
Changes in assets and liabilities:
Decrease (increase) in receivables - 2,827 2,827
Decrease (increase) in deferred
outflows of resources 2,916,998 - 2,916,998
Increase (decrease) in payables (12,800,378) (41,568) (12,841,946)
Increase (decrease) in deferred
inflows of resources 11,549,603 - 11,549,603
Total adjustments 1,666,223 (38,741) 1,627,482
Net cash provided by operating activities $60,718 ($142,300) ($81,582)
For The Year Ended December 31, 2023
142
HOUSING AND REDEVELOPMENT AUTHORITY
COMPONENT UNIT
143
General Housing Loan Gateway Northeast
BAE Northern
Stacks
Assets
Cash and investments $10,717,058 $64,599 $9,040 $3,241,983
Receivables:
Accounts 699,985 - - -
Note 400,000 - - -
Taxes 16,042 - - 64
Mortgage:
Deferred - 3,548,471 - -
Interest 93,778 - - -
Due from other funds 8,772,506 - - -
Land held for resale 659,370 - - -
Total assets $21,358,739 $3,613,070 $9,040 $3,242,047
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $3,249 $84,568 $ - $ -
Due to primary government 450,595 - - -
Due to other funds - - 1,872,606 -
Total liabilities 453,844 84,568 1,872,606 -
Deferred inflows of resources:
Unavailable revenue 1,066,444 - - 64
Fund balance (deficit):
Nonspendable - 3,548,471 - -
Restricted - - - 3,241,983
Committed 947,614 - - -
Unassigned 18,890,837 (19,969) (1,863,566) -
Total fund balance (deficit) 19,838,451 3,528,502 (1,863,566) 3,241,983
Total liabilities, deferred inflows
of resources, and fund balance $21,358,739 $3,613,070 $9,040 $3,242,047
CITY OF FRIDLEY, MINNESOTA
BALANCE SHEET - GOVERNMENTAL FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
December 31, 2023
144
Exhibit F-1
BAE Hazardous Sub
District Locke Point Park Lake Pointe
Northstar Transit
Station
Other Governmental
Funds
Intra - Activity
Eliminations
Totals Governmental
Funds
$87,592 $323 $289,725 $3,231,946 $978,405 $ - $18,620,671
- - - - - - 699,985
- - - - - - 400,000
- 2,942 - 21,394 5,027 - 45,469
- - - - - - 3,548,471
- - - - - - 93,778
- - - - - (8,772,506) -
- - - - 83,660 - 743,030
$87,592 $3,265 $289,725 $3,253,340 $1,067,092 ($8,772,506) $24,151,404
$ - $ - $287,961 $298,978 $211,987 $ - $886,743
- - - - - - 450,595
2,390,888 4,191,974 95,303 - 221,735 (8,772,506) -
2,390,888 4,191,974 383,264 298,978 433,722 (8,772,506) 1,337,338
- - - - 86,946 - 1,153,454
- - - - - - 3,548,471
- - - 2,954,362 789,521 - 6,985,866
- - - - - - 947,614
(2,303,296) (4,188,709) (93,539) - (243,097) - 10,178,661
(2,303,296) (4,188,709) (93,539) 2,954,362 546,424 - 21,660,612
$87,592 $3,265 $289,725 $3,253,340 $1,067,092 ($8,772,506) $24,151,404
Fund balance reported above $21,660,612
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 1,011,755
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are reported as unavailable revenue 1,153,454
Net position of governmental activities $23,825,821
145
General Housing Loan
Gateway
Northeast
BAE Northern
Stacks
Revenues:
Tax increment $ - $ - $684,832 $2,133,395
Property taxes 337,477 288,328 - -
Investment income/(loss)470,543 26,891 10,641 93,133
Mortgage interest earnings - 31,721 - -
Interfund and other loan interest earnings 384,587 - - -
Miscellaneous 103,732 34,500 - -
Total revenues 1,296,339 381,440 695,473 2,226,528
Expenditures:
Personal services 990 - - -
Supplies and other charges 703,436 61,069 1,601 47,110
Developer assistance - 111,167 - -
Interest expense 17,961 - 98,452 -
Payments to primary government - - - 1,135,413
Redevelopment expense 643,508 - - -
Total expenditures 1,365,895 172,236 100,053 1,182,523
Excess (deficiency of revenues
over (under expenditures (69,556)209,204 595,420 1,044,005
Other financing sources:
Sale of real estate 127,970 - - -
Transfers in - 540,855 - -
Transfers out - - - (540,855)
Total other financing sources (uses)127,970 540,855 - (540,855)
Net change in fund balance 58,414 750,059 595,420 503,150
Fund balance (deficit) - January 1 19,780,037 2,778,443 (2,458,986)2,738,833
Fund balance (deficit) - December 31 $19,838,451 $3,528,502 ($1,863,566) $3,241,983
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CITY OF FRIDLEY, MINNESOTA
For The Year Ended December 31, 2023
HOUSING AND REDEVELOPMENT AUTHORITY
GOVERNMENTAL FUNDS
146
Exhibit F-2
BAE Hazardous Sub
District Locke Point Park Lake Pointe
Northstar Transit
Station
Other Governmental
Funds
Totals Governmental
Funds
$247,074 $275,475 $639,913 $1,402,700 $707,334 $6,090,723
- - - - - 625,805
4,400 3,985 4,179 104,028 35,575 753,375
- - - - - 31,721
- - - - - 384,587
- - - - - 138,232
251,474 279,460 644,092 1,506,728 742,909 8,024,443
- - - - - 990
- 3,872 1,540 50,073 25,036 893,737
- - 575,922 597,616 482,857 1,767,562
86,515 171,813 - - 15,808 390,549
- - - - - 1,135,413
- - - - - 643,508
86,515 175,685 577,462 647,689 523,701 4,831,759
164,959 103,775 66,630 859,039 219,208 3,192,684
- - - - - 127,970
- - - - - 540,855
- - - - - (540,855)
- - - - - 127,970
164,959 103,775 66,630 859,039 219,208 3,320,654
(2,468,255) (4,292,484) (160,169) 2,095,323 327,216 18,339,958
($2,303,296) ($4,188,709) ($93,539) $2,954,362 $546,424 $21,660,612
Amounts reported for governmental activities in the statement of activities
(Exhibit A-2) are different because:
Net changes in fund balances - total above $3,320,654
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.284,411
Changes in net position of governmental activities (Exhibit A-2)$3,605,065
147
Gateway East Gateway West
Housing
Replacement
Assets
Cash and investments $1,231 $899 $257,209
Taxes receivable - - 3,257
Land held for resale - 2,610 81,050
Total assets $1,231 $3,509 $341,516
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $ - $ - $ -
Due to other funds 69,586 146,265 -
Total liabilities 69,586 146,265 -
Deferred inflows of resources:
Unavailable revenue - 2,610 84,307
Fund balance (deficit):
Restricted - - 257,209
Unassigned (68,355) (145,366) -
Total fund balance (deficit) (68,355) (145,366) 257,209
Total liabilities, deferred inflows
of resources, and fund balance $1,231 $3,509 $341,516
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
December 31, 2023
148
Exhibit F-3
McGlynn Bakeries
Satellite Lane
Apts. Main Street
Northern Stacks
VIII Holly Center Moon Plaza
Total Nonmajor
Capital Project
Funds
$398 $530,889 $72,974 $1,445 $113,360 $ - $978,405
- 12 - - 1,758 - 5,027
- - - - - - 83,660
$398 $530,901 $72,974 $1,445 $115,118 $0 $1,067,092
$ - $510 $72,392 $24,937 $114,148 $ - $211,987
- - - - - 5,884 221,735
0 510 72,392 24,937 114,148 5,884 433,722
- 12 - - 17 - 86,946
398 530,379 582 - 953 - 789,521
- - - (23,492) - (5,884) (243,097)
398 530,379 582 (23,492) 953 (5,884) 546,424
$398 $530,901 $72,974 $1,445 $115,118 $0 $1,067,092
149
Gateway East Gateway West
Housing
Replacement
Revenues:
Tax increment $56,950 $54,104 $64,710
Investment income/(loss) 2,761 1,361 8,788
Total revenues 59,711 55,465 73,498
Expenditures:
Supplies and other charges 982 707 320
Developer assistance - - -
Interest expense 6,052 9,530 -
Total expenditures 7,034 10,237 320
Excess (deficiency of revenues
over (under expenditures 52,677 45,228 73,178
Fund balance (deficit) - January 1 (121,032) (190,594) 184,031
Fund balance (deficit) - December 31 ($68,355) ($145,366) $257,209
AND CHANGES IN FUND BALANCE
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
CITY OF FRIDLEY, MINNESOTA
For The Year Ended December 31, 2023
HOUSING AND REDEVELOPMENT AUTHORITY
NONMAJOR CAPITAL PROJECT FUNDS
150
Exhibit F-4
McGlynn
Bakeries
Satellite
Lane Apts.Main Street
Northern
Stacks VIII Holly Center Moon Plaza
Totals Nonmajor
Capital Project
Funds
$ - $61,602 $160,872 $55,416 $253,680 $ - $707,334
- 22,315 - - 350 - 35,575
- 83,917 160,872 55,416 254,030 - 742,909
- 921 15,505 464 479 5,658 25,036
60,943 510 144,785 49,874 226,745 - 482,857
- - - - - 226 15,808
60,943 1,431 160,290 50,338 227,224 5,884 523,701
(60,943) 82,486 582 5,078 26,806 (5,884) 219,208
61,341 447,893 - (28,570) (25,853) - 327,216
$398 $530,379 $582 ($23,492) $953 ($5,884) $546,424
151
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152
CUSTODIAL FUNDS
Custodial 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.
153
Exhibit G-1
Hotel/Motel Tax
Assets:
Cash and investments $7,464
Accounts receivables 8,110
Total assets $15,574
Liabilities:
Accounts payable 15,574
Net Position:
Restricted for economic development $ -
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF NET POSITION
CUSTODIAL FUND
December 31, 2023
154
Exhibit G-2
Hotel/Motel Tax
Additions:
Tax collections from other government $136,089
Total additions 136,089
Deductions:
Payments of tax to other governments 129,285
Administrative fee 6,804
Total deductions 136,089
Net increase (decrease) in Fiduciary net position -
Net position - beginning -
Net position - ending $ -
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUND
For The Year Ended December 31, 2023
155
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156
III. STATISTICAL SECTION (UNAUDITED)
157
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158
Statistical Section (Unaudited)
This part of the City of Fridley's annual comprehensive financial report presents
detailed statistical 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.
Contents Tables
Financial Trends 1 - 4
These schedules contain trend information to help the reader understand how the
City's financial performance and well-being have changed over time.
Revenue Capacity 5 - 8
These schedules contain information to help the reader assess the factors
affecting the City's ability to generate its property tax.
Debt Capacity 9 - 12
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 Information 13 - 15
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 Information 16 - 17
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.
159
2014 2015 2016 2017
Governmental activities:
Net investment in capital assets $14,186,359 $16,811,842 $23,932,586 $31,006,344
Restricted 2,673,982 2,233,179 2,204,983 2,739,575
Unrestricted 25,321,659 16,052,833 13,175,954 8,889,557
Total governmental activities net position $42,182,000 $35,097,854 $39,313,523 $42,635,476
Business-type activities:
Net investment in capital assets $13,053,816 $14,234,711 $13,913,434 $13,897,925
Unrestricted 8,727,382 8,058,181 9,567,290 11,077,566
Total business-type activities net position $21,781,198 $22,292,892 $23,480,724 $24,975,491
Primary government:
Net investment in capital assets $27,240,175 $31,046,553 $37,846,020 $44,904,269
Restricted 2,673,982 2,233,179 2,204,983 2,739,575
Unrestricted 34,049,041 24,111,014 22,743,244 19,967,123
Total primary government net position $63,963,198 $57,390,746 $62,794,247 $67,610,967
Note: GASB 68 was implemented in 2015. Net position was restated for 2014 to reflect the reporting of net position
liability and pension related deferred outflows of resources. Net position for years prior to 2014 was not restated.
CITY OF FRIDLEY, MINNESOTA
NET POSITION BY COMPONENT
Last ten fiscal years
(Accrual Basis of Accounting)
160
Table 1
2018 2019 2020 2021 2022 2023
$30,070,173 $27,349,945 $31,075,685 $29,987,129 $27,164,052 $30,920,434
2,977,454 3,047,005 3,662,136 2,763,121 3,957,778 7,102,089
11,049,555 15,961,597 5,783,139 9,898,422 9,915,345 12,454,606
$44,097,182 $46,358,547 $40,520,960 $42,648,672 $41,037,175 $50,477,129
$15,068,876 $18,211,710 $21,135,232 $23,043,111 $23,290,271 $24,180,284
12,674,876 11,837,418 11,052,792 12,250,803 15,034,748 18,472,064
$27,743,752 $30,049,128 $32,188,024 $35,293,914 $38,325,019 $42,652,348
$45,139,049 $45,561,655 $52,210,917 $53,030,240 $50,454,323 $55,100,718
2,977,454 3,047,005 3,662,136 2,763,121 3,957,778 7,102,089
23,724,431 27,799,015 16,835,931 22,149,225 24,950,093 30,926,670
$71,840,934 $76,407,675 $72,708,984 $77,942,586 $79,362,194 $93,129,477
161
2014 2015 2016 2017
Expenses
Governmental activities:
General government $4,092,123 $4,156,904 $4,398,370 $4,298,149
Public safety 7,570,322 8,048,655 10,313,163 9,129,111
Public works 5,959,595 5,127,667 4,975,340 5,112,090
Community development 898,455 1,107,348 1,126,835 981,433
Parks and recreation 1,513,135 1,353,320 1,440,232 1,720,811
Interest on long-term debt 179,420 144,064 97,684 2,292,957
Total governmental activities expenses 20,213,050 19,937,958 22,351,624 23,534,551
Business-type activities:
Liquor 4,596,316 4,914,786 5,043,703 5,110,714
Water 2,902,419 3,101,356 3,076,493 3,531,649
Sanitary sewer 4,988,587 5,040,861 5,068,146 5,340,062
Storm water 597,915 785,626 1,030,467 1,085,780
Total business-type activities expenses 13,085,237 13,842,629 14,218,809 15,068,205
Total primary government expenses $33,298,287 $33,780,587 $36,570,433 $38,602,756
Program revenues
Governmental activities:
Charges for services:
General government $2,079,719 $1,905,021 $2,031,207 $2,021,012
Public safety 683,418 619,630 742,523 798,510
Public works 27,312 53,589 32,522 34,681
Community development 798,392 1,194,534 1,108,177 895,125
Parks and recreation 327,508 336,847 333,766 352,245
Operating grants and contributions 1,837,860 1,139,385 1,077,559 1,847,380
Capital grants and contributions 1,220,903 2,370,009 6,296,532 5,333,480
Total governmental activities program revenues 6,975,112 7,619,015 11,622,286 11,282,433
Business-type activities:
Charges for services:
Liquor 4,786,987 5,256,840 5,439,423 5,520,161
Water 2,913,717 2,907,123 3,330,350 3,486,965
Sanitary sewer 4,754,492 4,809,679 5,298,995 5,640,419
Storm water 732,961 1,225,153 1,324,460 1,378,095
Operating grants and contributions - - 67,551 61,476
Capital grants and contributions 440,627 421,990 186,791 713,655
Total business-type activities program revenues 13,628,784 14,620,785 15,647,570 16,800,771
Total primary government program revenues $20,603,896 $22,239,800 $27,269,856 $28,083,204
CITY OF FRIDLEY, MINNESOTA
CHANGES IN NET POSITION
Last ten fiscal years
(Accrual basis of accounting)
162
Table 2
Page 1 of 2
2018 2019 2020 2021 2022 2023
$3,697,097 $5,504,858 $6,003,817 $5,851,445 $6,389,864 $6,921,931
9,274,465 10,035,219 9,946,434 9,816,095 12,178,884 13,556,667
4,699,946 5,677,069 5,304,937 5,698,161 6,186,146 6,244,765
946,173 973,708 16,037,288 1,051,339 1,478,757 1,450,922
1,835,082 1,565,950 1,459,005 1,754,110 1,854,907 661,060
1,685,039 1,795,560 2,012,685 1,881,282 2,795,304 2,580,922
22,137,802 25,552,364 40,764,166 26,052,432 30,883,862 31,416,267
5,544,091 5,698,502 6,115,659 6,552,204 6,098,010 5,858,397
3,047,417 2,811,051 3,192,159 3,086,716 3,270,302 3,364,844
5,347,742 5,722,230 5,911,370 5,776,014 6,266,036 6,726,694
1,071,446 1,208,564 1,243,060 1,288,000 1,496,526 1,566,767
15,010,696 15,440,347 16,462,248 16,702,934 17,130,874 17,516,702
$37,148,498 $40,992,711 $57,226,414 $42,755,366 $48,014,736 $48,932,969
$2,244,912 $2,236,868 $1,490,036 $1,623,061 $2,157,317 $2,229,748
840,976 558,695 2,181,463 2,066,986 791,031 903,757
53,360 31,841 792,658 874,269 553,539 1,997,663
1,206,364 1,502,589 971,674 1,299,234 1,982,209 2,247,338
319,998 317,088 59,289 233,035 320,780 348,186
1,185,939 1,845,628 1,603,520 1,483,495 2,082,891 2,908,752
520,201 1,334,148 6,096,584 1,265,349 2,135,051 4,743,465
6,371,750 7,826,857 13,195,224 8,845,429 10,022,818 15,378,909
6,029,627 6,195,797 6,708,539 7,290,355 6,521,618 6,230,594
3,912,727 3,798,381 4,143,249 4,666,860 4,545,403 4,894,229
6,095,556 6,075,840 5,937,276 6,325,191 6,639,735 7,491,197
1,433,935 1,491,252 1,523,085 1,600,201 1,767,347 2,033,430
- 251,666 118,410 - 84,590 38,706
499,800 - 163,816 275,449 466,483 191,275
17,971,645 17,812,936 18,594,375 20,158,056 20,025,176 20,879,431
$24,343,395 $25,639,793 $31,789,599 $29,003,485 $30,047,994 $36,258,340
163
2014 2015 2016 2017
Net (expense) revenue:
Governmental activities ($13,237,938) ($12,318,943) ($10,729,338) ($12,252,118)
Business-type activities 543,547 778,156 1,428,761 1,732,566
Total primary government net (expense) revenue ($12,694,391) ($11,540,787) ($9,300,577) ($10,519,552)
General revenues and other changes in net position
Governmental activities:
General property taxes $11,521,196 $11,795,707 $12,222,937 $13,884,775
Grants not restricted to programs 1,476,664 1,325,388 1,763,614 657,546
Investment income/(loss)634,411 157,281 254,379 413,165
Gain (loss) on sale of property -67,581 11,005 -
Other 93,236 418,640 354,572 280,085
Transfers 250,000 338,600 338,500 338,500
Total governmental activities 13,975,507 14,103,197 14,945,007 15,574,071
Business-type activities:
Grants not restricted to programs -2,413 - -
Investment earnings 148,248 42,722 95,713 68,805
Gain (loss) on sale of property -10,672 -16,000
Other 12,201 16,331 1,858 15,896
Transfers (250,000)(338,600) (338,500) (338,500)
Total business-type activities (89,551) (266,462) (240,929) (237,799)
Total primary government $13,885,956 $13,836,735 $14,704,078 $15,336,272
Change in net position:
Governmental activities $737,569 $1,784,254 $4,215,669 $3,321,953
Business-type activities 453,996 511,694 1,187,832 1,494,767
Total primary government $1,191,565 $2,295,948 $5,403,501 $4,816,720
Note: GASB 68 was implemented in 2015. Pension expense for years prior to 2015 was not restated.
CHANGES IN NET POSITION
Last ten fiscal years
(Accrual basis of accounting)
CITY OF FRIDLEY, MINNESOTA
164
Table 2
Page 2 of 2
2018 2019 2020 2021 2022 2023
($15,766,052) ($17,725,507) ($27,568,942) ($17,207,003) ($20,861,044) ($16,037,358)
2,960,949 2,372,589 2,132,127 3,455,122 2,894,302 3,362,729
($12,805,103) ($15,352,918) ($25,436,815) ($13,751,881) ($17,966,742) ($12,674,629)
$14,839,034 $15,387,457 $16,225,057 $16,932,793 $17,340,718 $19,410,491
1,613,020 1,670,719 3,948,112 1,848,065 1,839,727 1,875,934
651,609 811,009 980,709 (180,488) (576,946) 2,866,774
(335,183) (249,165) 21,429 129,604 48,528 188,057
120,778 2,028,352 298,544 266,241 259,020 797,556
338,500 338,500 257,504 338,500 338,500 338,500
17,227,758 19,986,872 21,731,355 19,334,715 19,249,547 25,477,312
8,957 8,957 - - 794,835 434,500
142,716 257,520 262,616 (24,062) (387,377) 828,946
(7,046) 3,772 - 12,450 17,550 39,551
1,185 1,038 1,657 880 295 103
(338,500) (338,500) (257,504) (338,500) (338,500) (338,500)
(192,688) (67,213) 6,769 (349,232) 86,803 964,600
$17,035,070 $19,919,659 $21,738,124 $18,985,483 $19,336,350 $26,441,912
$1,461,706 $2,261,365 ($5,837,587) $2,127,712 ($1,611,497) $9,439,954
2,768,261 2,305,376 2,138,896 3,105,890 2,981,105 4,327,329
$4,229,967 $4,566,741 ($3,698,691) $5,233,602 $1,369,608 $13,767,283
165
2014 2015 2016 2017
General Fund:
Nonspendable $60,123 $66,265 $51,305 $55,777
Restricted 15,176 19,376 35,903 14,466
Unassigned 8,242,331 8,858,309 9,084,228 9,522,843
Total general fund $8,317,630 $8,943,950 $9,171,436 $9,593,086
All other governmental funds:
Nonspendable $ - $ - $ - $ -
Restricted 2,071,259 1,808,572 1,903,290 34,821,855
Committed 2,566,101 2,709,638 2,549,903 2,658,339
Assigned 11,949,555 11,272,588 10,573,287 8,510,134
Unassigned (97,712) (43,153) (27,574) (9,453)
Total all other governmental funds $16,489,203 $15,747,645 $14,998,906 $45,980,875
CITY OF FRIDLEY, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
(Modified accrual basis of accounting)
166
Table 3
2018 2019 2020 2021 2022 2023
$77,801 $53,334 $65,779 $105,578 $225,418 $258,652
20,335 42,180 24,513 20,849 58,765 1,381,489
11,045,978 10,166,947 13,603,533 10,598,912 10,563,650 11,245,668
$11,144,114 $10,262,461 $13,693,825 $10,725,339 $10,847,833 $12,885,809
$ - $ - $ - $ - $ - $32,211
5,009,553 12,775,223 3,566,713 3,720,128 27,174,772 20,691,123
6,765,928 11,165,161 11,550,431 16,180,954 16,523,003 17,955,398
4,567,369 6,177,195 6,362,198 6,811,853 4,799,846 5,255,768
- - (567)(52,012)(66,780)(52,451)
$16,342,850 $30,117,579 $21,478,775 $26,660,923 $48,430,841 $43,882,049
167
2014 2015 2016 2017
Revenues:
General property taxes $11,554,557 $11,805,580 $12,244,211 $13,878,204
Special assessments 938,290 542,248 865,722 621,621
Licenses and permits 1,171,365 1,549,785 1,442,895 1,272,753
Intergovernmental 3,208,442 4,375,972 7,330,338 4,227,709
Charges for services 2,518,062 2,374,896 2,592,665 2,560,831
Fines and forfeits 226,922 184,940 212,635 267,989
Earnings on investments 565,245 157,281 254,379 413,165
Interest on loan - - - -
Other 314,416 429,713 887,678 766,059
Total revenues $20,497,299 $21,420,415 $25,830,523 $24,008,331
Expenditures:
Current:
General government 3,732,056 3,777,688 3,924,877 3,953,025
Public safety 7,165,678 7,319,564 7,537,051 8,001,032
Public works 4,635,752 3,575,252 2,824,319 3,468,102
Community development 894,785 1,081,549 942,768 934,074
Parks and recreation 1,422,405 1,288,684 1,341,444 1,417,611
Debt service:
Principal 1,150,000 1,190,000 1,230,000 1,730,000
Interest 190,890 152,894 112,421 931,527
Bond issuance costs 3,150 7,462 2,700 715,461
Capital outlay 1,290,008 3,645,425 8,618,369 22,577,062
Total expenditures 20,484,724 22,038,518 26,533,949 43,727,894
Revenues over (under) expenditures $12,575 ($618,103) ($703,426) ($19,719,563)
Other financing sources (uses):
Bonds/leases issued - - - 49,130,000
Premium/(discount) on bonds issue - - - 1,584,898
Proceeds from sale of capital assets 36,836 93,670 43,673 69,784
Transfers in 8,253,616 1,065,410 2,047,849 1,361,189
Transfers out (7,462,485)(726,810) (1,909,349) (1,022,689)
Total other financing sources (uses)827,967 432,270 182,173 51,123,182
Net change in fund balance $840,542 ($185,833) ($521,253) $31,403,619
Debt service as a percentage of
noncapital expenditures 7.0%7.3%7.5%13.0%
Debt service as percentage of total expenditures 6.5%6.1%5.1%6.1%
CITY OF FRIDLEY, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
168
Table 4
2018 2019 2020 2021 2022 2023
$14,857,454 $15,337,464 $16,133,737 $16,977,698 $17,352,753 $19,423,550
501,045 467,953 819,347 840,389 657,413 683,922
1,538,758 1,501,526 1,559,003 1,526,246 1,092,843 1,352,838
3,035,084 4,446,430 8,111,582 3,888,549 5,038,786 9,718,659
2,863,220 2,958,748 2,795,287 3,230,503 3,039,357 3,246,049
263,632 186,807 169,156 151,219 197,517 195,926
651,609 811,009 898,347 (164,818)(503,820) 2,713,025
- - 108,000 98,579 111,276 97,181
374,415 2,178,614 1,232,731 1,392,806 1,801,529 2,381,751
$24,085,217 $27,888,551 $31,827,190 $27,941,171 $28,787,654 $39,812,901
3,659,534 4,677,076 5,177,833 5,023,569 5,295,200 5,626,716
8,317,478 8,831,505 8,924,373 9,761,947 10,327,011 11,531,643
3,316,912 3,535,263 3,222,623 3,451,877 3,636,672 3,928,244
909,481 982,166 15,999,027 1,073,651 1,391,086 1,386,145
1,557,052 1,244,351 1,175,270 1,438,269 1,471,176 1,603,950
1,390,000 1,495,000 1,540,000 2,070,000 2,105,000 2,285,908
1,761,843 1,721,308 1,958,725 2,106,674 2,022,014 2,971,536
2,800 155,218 62,855 - 558,999 -
31,660,699 2,721,649 4,412,516 1,269,626 2,686,883 14,108,440
52,575,799 25,363,536 42,473,222 26,195,613 29,494,041 43,442,582
($28,490,582) $2,525,015 ($10,646,032) $1,745,558 ($706,387) ($3,629,681)
- 9,510,000 4,540,000 - 20,730,000 592,308
- 504,837 619,659 - 1,481,771 -
65,085 14,724 21,429 129,604 48,528 188,057
7,795,728 2,819,740 338,500 338,500 338,500 338,500
(7,457,228) (2,481,240)(80,996) - - -
403,585 10,368,061 5,438,592 468,104 22,598,799 1,118,865
($28,086,997) $12,893,076 ($5,207,440) $2,213,662 $21,892,412 ($2,510,816)
15.1%14.3%9.2%16.8%15.7%17.9%
6.0%12.7%8.2%15.9%14.0%12.1%
169
Commercial/
Fiscal Residential Industrial Public All
Year Property Property Utility Other
2014 $7,885,298 $12,520,981 $44,648 $4,362,496
2015 9,538,484 12,771,829 49,868 4,737,031
2016 9,488,686 13,688,867 58,699 4,958,693
2017 10,488,279 15,061,056 59,759 5,564,751
2018 11,639,971 15,097,292 62,282 5,961,619
2019 18,645,518 16,935,599 69,652 1,189,818
2020 20,305,713 18,228,064 52,061 1,200,626
2021 23,149,590 19,713,466 62,485 1,415,212
2022 23,326,147 19,746,828 61,735 1,072,472
2023 23,027,902 22,034,994 62,818 7,306,294
Source: Continuing Disclosure Document
CITY OF FRIDLEY, MINNESOTA
TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY
Last ten fiscal years
1 Property values are determined on January 2 of the preceeding year.
170
Table 5
Add: Less:
Total for Area-wide Fiscal Adjusted Total Estimated Tax Capacity
Tax Values and Disparity Tax Capacity Direct Tax Market as a Percent
Capacity Increment Contribution Value Rate Value 1 of EMV
$24,813,423 $2,799,171 $4,509,587 $23,103,007 48.577% $1,948,580,100 107.40%
27,097,212 2,934,045 4,358,570 25,672,687 43.508% 2,146,063,300 105.55%
28,194,945 2,986,838 4,681,350 26,500,433 44.960% 2,207,363,400 106.39%
31,173,845 2,946,266 5,225,764 28,894,347 48.218% 2,416,338,500 107.89%
32,761,164 2,918,699 5,571,692 30,108,171 47.907% 2,557,662,900 108.81%
36,840,587 3,230,754 5,830,355 34,240,986 45.380% 2,854,939,900 107.59%
39,786,464 3,841,599 6,520,022 37,108,041 45.253% 3,073,484,500 107.22%
44,340,753 5,047,146 7,707,520 41,680,379 44.941% 3,427,584,200 106.38%
44,207,182 5,039,430 7,707,747 41,538,865 45.242% 3,425,676,400 106.42%
52,432,008 (641,369) 7,634,706 44,155,933 43.017% 4,068,533,300 118.74%
171
School School School
Fiscal District District District
Year City No. 11 No. 13 No. 14
2014 48.577%28.265%24.824%49.552%
2015 43.508%22.482%32.562%48.422%
2016 44.960%20.885%29.442%54.252%
2017 48.218%18.590%27.633%49.408%
2018 47.907%18.392%27.900%51.006%
2019 45.382%16.330%33.148%49.055%
2020 45.253%16.948%23.385%46.213%
2021 44.941%16.152%28.771%44.306%
2022 45.242%16.319%24.986%43.699%
2023 43.017%13.671%18.201%34.656%
Source: Anoka County Property Records and Taxation Department
Notes:
(1)Coon Creek Watershed District is included with School District No. 11.
(2)Rice Creek Watershed District is included with School District No. 13, 14 and 16.
CITY OF FRIDLEY, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES
Last ten fiscal years
172
Table 6
Special Special
School Districts Districts School School School School
District with with District District District District
No. 16(1)County Coon Creek Rice Creek No. 11(1)No. 13(2)No. 14(2)No. 16(2)
44.562% 43.239% 9.559% 10.296% 129.640% 126.936% 151.664% 146.674%
40.045% 38.123% 8.591% 9.079% 112.704% 123.272% 139.132% 130.755%
39.609% 38.894% 9.688% 9.622% 114.427% 122.918% 147.728% 133.085%
40.229% 36.841% 6.758% 7.200% 110.407% 119.892% 141.667% 132.488%
39.617% 37.792% 6.892% 7.282% 110.983% 120.881% 143.987% 132.598%
37.632% 34.473% 6.265% 6.699% 102.450% 119.702% 135.609% 124.186%
35.452% 33.440% 6.120% 6.642% 101.761% 108.720% 131.548% 120.787%
33.110% 32.885% 4.354% 4.876% 98.332% 111.473% 127.008% 115.812%
33.380% 29.254% 4.224% 4.582% 95.039% 104.064% 122.777% 112.458%
27.812% 24.176% 5.073% 5.385% 85.937% 90.779% 107.234% 100.390%
Total Tax Capacity Rates By School Districts
173
Table 7
Percentage Percentage
Taxable of Total City Taxable of Total City
Capacity Capacity Capacity Capacity
Taxpayer Value Rank Value Value Rank Value
Medtronic, Inc. $2,159,520 1 4.12% $1,663,360 1 6.70%
Onan Corp (Cummins Power) 845,496 2 1.61% 513,046 3 2.07%
Target Corporation 816,294 3 1.56% 549,794 2 2.22%
BNSF Railroad 741,563 4 1.41% N/A N/A
Industrial Equities Group 677,329 5 1.29% 281,190 5 1.13%
Cielo Partners LLC 671,614 6 1.28% N/A N/A
University Avenue Associates 547,540 7 1.04% 234,936 7 0.95%
Shamrock Investments 539,916 8 1.03% 276,456 6 1.11%
Georgetown Apartments 481,753 9 0.92% N/A N/A
GPT Fridley / BAE 424,538 10 0.81% 210,344 8 0.85%
Hyde Development - 0.00% N/A N/A
Fridley Medical Clinic - 0.00% N/A N/A
Fridley Market (60th/Main) - N/A N/A N/A
Wal-Mart/Sam's Club - N/A 329,397 4 1.33%
River Pointe Apartments - N/A 185,007 9 0.75%
ZCOF (Fridley Market) - N/A N/A N/A
Lifetime Fitness - N/A 181,092 10 0.73%
Total $7,905,563 15.07% $4,424,622 17.84%
Total All Property $52,432,008 $24,813,423
Source: City Assessor
CITY OF FRIDLEY, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS
Current year and nine years ago
20142023
174
Table 8
Fiscal Taxes Collections
Year Levied in
Ended For The Percentage Subsequent Percentage
Dec. 31 Fiscal Year Amount of Levy Years1 Amount of Levy
2014 11,511,288 11,372,812 98.80% 138,476 11,511,288 100.00%
2015 11,734,607 11,657,855 99.35%76,752 11,734,607 100.00%
2016 12,200,835 12,172,555 99.77%25,468 12,198,023 99.98%
2017 14,122,251 13,990,154 99.06% 129,366 14,119,520 99.98%
2018 14,807,913 14,804,501 99.98%429 14,804,930 99.98%
2019 15,494,419 15,339,721 99.00% 154,184 15,493,905 100.00%
2020 16,109,557 16,030,087 99.51%67,543 16,097,630 99.93%
2021 16,890,084 16,834,247 99.67%40,587 16,874,834 99.91%
2022 17,392,070 17,326,104 99.62%37,199 17,363,303 99.83%
2023 19,620,870 19,458,238 99.17% N/A 19,458,238 99.17%
1Includes repayment of property tax abatements
Source: City Finance Department
CITY OF FRIDLEY, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last ten fiscal years
Collected Within The
Fiscal Year of the Levy Total Collections to Date
175
Table 9
CITY OF FRIDLEY, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten fiscal years
Business
Type
Activities
Total Percentage
Fiscal Improvement Tax Increment Equipment Tax Revenue Primary of Personal Per
Year Bonds Bonds Certificates Abatement Total Bonds Government Income1 Capita1
2014 $4,000,000 $ - $1,530,000 $ - $5,530,000 $5,845,000 $11,375,000 1.58% 198
2015 3,010,000 - 1,330,000 - 4,340,000 5,260,000 9,600,000 1.31% 152
2016 1,980,000 - 1,130,000 - 3,110,000 10,811,935 13,921,935 1.69% 109
2017 51,111,785 - 925,000 - 52,036,785 8,200,461 60,237,246 7.25% 1,815
2018 49,863,389 - 720,000 - 50,583,389 7,273,987 57,857,376 6.74% 1,755
2019 49,019,830 9,510,000 510,000 - 59,039,830 6,317,180 65,357,010 7.28% 1,969
2020 47,126,597 15,048,975 295,000 - 62,470,572 5,575,343 68,045,915 7.01% 2,088
2021 45,768,201 14,282,043 150,000 - 60,200,244 3,688,506 63,888,750 6.51% 2,020
2022 44,454,805 13,440,111 - 22,211,771 80,106,687 3,111,669 83,218,356 7.71% 2,674
2023 42,926,410 12,558,178 - 22,121,218 77,605,806 2,524,832 80,130,638 7.33% 2,562
1Demographic information can be found on Table 13
Governmental Activities
176
Table 10
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable1 Debt
Debt repaid with property taxes:
Independent School District No. 11 $238,210,000 1.60% $3,811,360
Independent School District No. 13 16,153,058 31.46% 5,081,752
Independent School District No. 14 38,885,000 100.00% 38,885,000
Independent School District No. 16 91,825,000 36.80% 33,791,600
Metro Council 1,694,829,000 1.19% 20,168,465
Anoka County 34,695,000 18.04% 6,258,978
Vocational/Technical District No. 916 69,450,000 2.21% 1,534,845
Subtotal - overlapping debt 109,532,000
City of Fridley - direct debt 77,605,806
Total direct and overlapping debt $77,605,806 100.00% $187,137,806
Sources: Continuing Disclosure Document
1Overlapping 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.
CITY OF FRIDLEY, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2023
177
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178
Table 11
Market Value $4,068,533,300
Debt Limit 3% of Market Value $122,055,999
Amount of Debt Applicable to Debt Limit:
Total Debt $76,920,000
Deductions:
Revenue Bonds 2,440,000 2,440,000
Total Amount of Debt Applicable to Debt Limit 74,480,000
Legal Debt Margin $47,575,999
Legal Debt Margin Calculation for the last 10 Fiscal Years
Net Debt Legal Amount of Debt
Fiscal Debt Applicable to Debt Applicable to
Year Limit Limit Margin Debt Limit
2014 $58,457,403 $1,530,000 $56,927,403 2.62%
2015 64,381,899 1,330,000 63,051,899 2.07%
2016 66,220,902 1,130,000 65,090,902 1.71%
2017 72,490,155 50,055,000 22,435,155 69.05%
2018 76,729,887 48,790,000 27,939,887 63.59%
2019 85,648,197 56,935,000 28,713,197 66.48%
2020 92,204,535 60,070,000 32,134,535 65.15%
2021 102,827,526 58,065,000 44,762,526 56.47%
2022 102,770,292 46,260,000 59,525,202 57.92%
2023 122,055,999 74,480,000 47,575,999 61.02%
CITY OF FRIDLEY, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
Last ten fiscal years
179
Special Property Utility Less
Fiscal Assessment Tax Service Operating
Year Collections Principal Interest Coverage Collections Principal Interest Coverage Revenues Expenses
2014 $932,078 $955,000 $166,235 0.83 $234,357 $195,000 $25,653 1.06 $8,363,415 $6,987,095
2015 188,303 990,000 129,815 0.17 231,310 200,000 23,080 1.04 8,936,287 7,405,596
2016 166,895 1,030,000 92,090 0.15 234,359 200,000 20,330 1.06 9,938,517 7,381,382
2017 105,827 1,525,000 914,322 0.04 225,962 205,000 17,205 1.02 10,499,230 8,374,461
2018 52,979 1,185,000 1,747,988 0.02 232,848 205,000 13,855 1.06 11,442,218 9,307,210
2019 48,680 1,285,000 1,710,938 0.02 231,149 210,000 10,371 1.05 11,365,473 9,608,209
2020 25,154 1,325,000 1,671,788 0.01 157,817 215,000 6,570 0.71 11,603,610 9,812,423
2021 10,336 1,295,000 1,638,638 0.00 160,511 145,000 3,526 1.08 12,592,252 9,681,907
2022 - 1,250,000 1,594,113 0.00 (95) 150,000 1,238 0.00 12,952,485 12,091,570
2023 - 1,465,000 1,526,238 0.00 1,878 - - N/A 14,419,231 12,806,455
Last ten fiscal years
PLEDGED-REVENUE COVERAGE
CITY OF FRIDLEY, MINNESOTA
Debt Service Debt Service
Improvement Bonds Equipment Certificates
180
Table 12
Net Tax Tax
Available Increment Increment
Revenue Principal Interest Coverage Collections Principal Interest Coverage Collections Principal Interest Coverage
$1,376,320 $570,000 $223,459 1.73 $ - $ - $ - - $ - $ - $ - -
1,530,691 585,000 203,060 1.94 - - - - - - - -
2,557,135 610,000 181,610 3.23 - - - - - - - -
2,124,769 2,600,000 261,888 0.74 - - - - - - - -
2,135,008 915,000 180,688 1.95 - - - - - - - -
1,757,264 945,000 155,763 1.60 - - - - - - - -
1,791,187 730,000 134,838 2.07 - - - - - - 280,368 -
2,910,345 1,875,000 131,838 1.45 - - - - - 630,000 460,038 -
860,915 565,000 66,763 1.36 - - - - - 705,000 426,663 -
1,612,776 575,000 55,363 2.56 - - 1,030,880 - - 745,000 390,413 -
Tax Increment Bonds
Debt Service Debt Service
Utility Revenue Bonds Tax Abatement Bonds
Debt Service
181
Table 13
Total Per Capita
Fiscal Unemployment Personal Personal
Year Population Rate Income Income
2014 27,952 4.2%720,406,896 25,773
2015 28,547 3.9%747,503,195 26,185
2016 28,631 3.9%810,142,776 28,296
2017 28,667 3.8%829,622,980 28,940
2018 28,824 3.1%862,385,256 29,919
2019 28,981 3.3%897,599,532 30,972
2020 29,924 7.5%971,033,800 32,450
2021 29,806 5.0%981,899,058 32,943
2022 29,962 2.6%1,062,531,280 36,040
2023 30,289 3.4%1,092,705,964 36,076
Sources: Metropolitan Council (population), Continuing Disclosure Document (unemployment rate)
CITY OF FRIDLEY, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last ten fiscal years
182
Table 14
2023 2014
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
Medtronic, Inc.3,410 1 13.76% 3,800 1 17.01%
Mercy - Unity Medical Center 1,482 2 5.98% 1,245 3 5.57%
Cummins Power (Onan)1,481 3 5.98% 1,500 2 6.71%
Target 1,476 4 5.96% 696 4 3.11%
BAE Systems 615 5 2.48% 600 5 2.69%
ISD #14 (Fridley Schools)568 6 2.29% 578 6 2.59%
Minco Products 367 7 1.48% 500 7 2.24%
Kurt Manufacturing 348 8 1.40% 263 10 1.18%
Wal-Mart 286 9 1.15% 280 9 1.25%
Taylor Communications 75 10 0.30% N/A N/A
Park Construction N/A N/A 300 8 1.34%
Total 10,108 40.78% 9,762 43.69%
Total City Employment 24,784 22,345
Source: Fridley Community Development Dept, MN Department of Employment and Economic Development
CITY OF FRIDLEY, MINNESOTA
PRINCIPAL EMPLOYERS
Current year and nine years ago
183
Function/Program 2014 2015 2016 2017
General government:
City administration 4.7 4.7 5.0 5.0
Finance 16.0 16.0 15.0 15.0
Employee resources 2.0 2.0 2.0 2.0
Community development 9.8 9.6 10.0 10.0
Public safety:
Police department 51.6 52.6 52.4 52.4
Fire department 7.6 7.0 7.0 7.0
Public works:
Administration 0.6 1.5 1.5 1.8
Engineering 5.0 1.8 1.8 2.1
Fleet 4.0 3.8 3.8 3.8
Streets 8.5 8.5 8.5 8.8
Water 7.0 7.8 7.8 7.9
Sewer 5.0 3.7 3.7 3.7
Parks 6.5 5.8 5.8 5.8
Storm Water - 5.1 5.1 5.1
Parks and recreation:
Parks and recreation 9.6 9.0 9.0 9.8
Total 137.9 138.9 138.4 140.0
Source: City Finance Department
Full-Time Equivalent Employees as of December 31,
CITY OF FRIDLEY, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last ten fiscal years
184
Table 15
2018 2019 2020 2021 2022 2023
5.7 6.0 4.0 5.0 7.0 7.0
2.8 3.0 3.0 3.0 3.0 3.0
16.1 16.9 17.9 22.0 20.0 20.0
10.0 10.0 10.0 10.0 10.0 11.0
52.1 54.1 54.9 56.7 58.7 58.7
7.0 6.0 4.9 6.0 6.0 6.0
1.8 2.8 2.8 3.0 2.9 2.9
2.1 2.1 2.1 2.1 1.8 2.8
5.8 5.8 5.8 5.8 6.1 7.1
8.8 8.8 8.9 8.7 8.3 8.3
3.8 3.8 4.0 3.6 3.9 3.9
7.9 7.9 7.9 8.2 8.1 8.1
3.7 3.7 4.6 4.2 4.6 4.6
5.0 5.0 6.7 6.0 6.1 6.1
10.2 9.0 11.7 10.8 11.3 11.5
142.8 144.9 149.2 155.1 157.8 161.0
Full-Time Equivalent Employees as of December 31,
185
Function/Program 2014 2015 2016 2017
Police:
Physical arrests 1,256 1,386 752 979
Parking violations 373 278 922 553
Traffic violations 3,245 2,592 2,601 2,250
Fire:
Emergency responses 3,089 3,047 3,268 3,439
Fires occurred 110 103 127 126
Commercial inspections 1,505 1,663 789 867
Community development:
Rental inspections 1,428 1,881 1,559 1,434
Refuse collection:
Recyclables collected (tons per day)6.22 6.33 5.99 6.62
Recyclables collected (pounds per person)164.59 165.96 156.54 169.25
Building inspection:
Permits issued:
Residential 1,974 4,642 2,227 1,804
Commercial 492 642 599 612
Total permit valuation $47,109,811 $60,598,103 $73,636,057 $103,663,306
Other public works:
Street resurfacing (miles)3.3 2.9 2.2 1.9
Recreation
Total Program Participant hours 310,000 311,500 315,000 300,000
Total Senior Program Participant hours 70,000 62,218 65,500 65,500
Nature Center Education Participants 23,860 20,404 15,609 16,339
Nature Center Special Event Participants N/A N/A 4,751 2,670
Nature Center Facility Rental Visitors N/A N/A N/A 5,364
Water:
Connections 8,243 8,245 8,374 8,259
Storage capacity (gallons)6,500,000 6,500,000 6,500,000 6,500,000
Average daily demand (gallons)2,517,808 2,968,901 3,560,000 3,390,000
Peak daily demand (gallons)7,439,000 6,803,000 6,392,000 6,379,000
Sewer:
Connections 8,252 8,254 8,271 8,235
Sources: Various City departments.
Fiscal Year
CITY OF FRIDLEY, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last ten fiscal years
186
Table 16
2018 2019 2020 2021 2022 2023
1,043 911 761 1,247 1,365 1,397
612 1,741 671 841 1,289 1,137
2,622 1,932 1,883 1,395 1,258 1,891
2,415 2,596 3,342 3,003 3,372 3,254
126 105 123 159 162 126
829 1,672 862 397 588 722
1,410 1,643 1,260 1,374 1,494 1,657
6.20 6.37 6.57 5.79 5.68 6
158.29 162.28 163.28 142.72 140.32 137
2,007 2,093 2,329 2,278 2,095 2,260
514 453 378 430 297 353
$91,601,072 $98,100,786 $99,191,402 $87,575,510 $32,218,314 $73,578,562
0.2 0.6 3.6 2.2 1.8 4.8
321,927 58,354 6,892 50,765 50,770 51,687
21,615 N/A N/A N/A N/A N/A
16,872 15,587 3,785 10,581 18,343 17,229
4,200 3,700 145 3,528 6,168 5,769
5,500 4,456 1,059 1,419 3,901 4,632
8,261 8,305 8,343 8,362 8,364 8,356
6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000
3,233,000 3,056,000 3,370,000 3,480,000 3,490,000 3,390,000
5,900,000 5,720,000 6,458,000 7,345,000 6,443,000 7,802,000
8,239 8,291 8,326 8,344 8,346 8,338
Fiscal Year
187
Table 17
Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Police:
Stations 1111111111
Squad cars 15 13 13 12 15 15 15 15 15 16
Fire stations 3333322222
Other public works:
Streets (miles) 125.3 125.5 125.5 125.5 125.8 126.1 126.1 126.1 126.1 126.1
Highways (miles) 10.3 10.3 10.3 10.3 10.3 10.3 10.3 10.3 10.3 10.3
Streetlights 1,059 1,059 1,059 1,059 1,059 1,093 1,123 1,123 1,123 1,123
Traffic signals 36 36 36 36 36 36 36 36 36 36
Parks and recreation:
Acreage 682 682 682 682 665 665 666 666 666 742
Playgrounds 29 29 29 29 28 28 29 29 29 30
Baseball/softball diamonds 22 22 22 21 21 21 21 21 21 21
Soccer/football fields 2222222222
Water:
Water mains (miles) 113.0 113.2 113.2 113.2 116.0 117.5 127.0 127.8 127.8 127.8
Fire hydrants 1,013 1,013 1,013 1,013 1,020 1,040 1,040 1,070 1,420 1,422
Storage capacity (million gallons) 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5
Wastewater:
Sanitary sewers (miles) 103.0 103.0 103.0 103.0 106.0 107.5 109.0 109.0 109.2 109.2
Storm sewers (miles) 102.0 102.2 102.2 102.2 104.5 107.0 115.5 115.5 115.5 89.1
Sources: Various City departments.
CITY OF FRIDLEY, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last ten fiscal years
Fiscal Year
188