2011 CAFR
CITY OF FRIDLEY, MINNESOTA
Comprehensive Annual Financial Report
For the Year Ended
December 31, 2011
Prepared by:
Finance Department
Darin R. Nelson
Finance Director
CITY OF
FRIDLEY
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2011
TABLE OF CONTENTS
EXHIBITPAGE
I. INTRODUCTORY SECTION
Letter of Transmittal3
Elected and Appointed Officials9
City Administrative Organizational Structure 201110
II. FINANCIAL SECTION
Independent Auditor's Report15
Management's Discussion and Analysis17
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net AssetsA-129
Statement of ActivitiesA-230
Fund Financial Statements:
Balance Sheet - Governmental FundsA-332
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental FundsA-434
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of ActivitiesA-537
Statement of Net Assets - Proprietary FundsA-638
Statement of Revenues, Expenses and Changes in Fund Net Assets -
Proprietary FundsA-740
Statement of Cash Flows - Proprietary FundsA-842
Statement of Fiduciary Net AssetsA-944
Notes to Financial Statements45
Required Supplementary Information:
Budgetary Comparison Schedule - General FundB-180
Budgetary Comparison Schedule - Grant Management FundB-284
Budgetary Comparison Schedule - Note to RSI85
Schedule of Funding Progress - Retiree Health Plan86
Combined, Combining and Individual Fund Statements and Schedules:
Combined Balance Sheet - Nonmajor Governmental FundsC-190
Combined Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental FundsC-291
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2011
TABLE OF CONTENTS
EXHIBITPAGE
Combining Balance Sheet - Nonmajor Special Revenue FundsC-394
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue FundsC-496
Special Revenue Funds:
Cable TV Fund:
Comparative Balance SheetD-198
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and ActualD-299
Solid Waste Abatement Fund:
Comparative Balance SheetD-3100
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and ActualD-4101
HRA Reimbursement Fund:
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and ActualD-5102
Drug and Gambling Forfeiture Fund:
Comparative Balance SheetD-6103
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and ActualD-7104
F. C. C. Donations Fund:
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and ActualD-8105
Police Activity Fund:
Comparative Balance SheetD-9106
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and ActualD-10107
Springbrook Nature Center Fund:
Comparative Balance SheetD-11108
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and ActualD-12109
Capital Project Fund:
Capital Improvement Fund:
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and ActualE-1112
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2011
TABLE OF CONTENTS
EXHIBITPAGE
Internal Service Funds:
Combining Statement of Net AssetsF-1114
Combining Statement of Revenues, Expenses and Changes in Net AssetsF-2115
Combining Statement of Cash FlowsF-3116
Employee Benefits Fund:
Comparative Statement of Net AssetsF-4117
Comparative Statement of Revenues, Expenses and Changes in Net AssetsF-5118
Comparative Statement of Cash FlowsF-6119
Self Insurance Fund:
Comparative Statement of Net AssetsF-7120
Comparative Statement of Revenues, Expenses and Changes in Net AssetsF-8121
Comparative Statement of Cash FlowsF-9122
Information Systems Fund:
Comparative Statement of Net AssetsF-10123
Comparative Statement of Revenues, Expenses and Changes in Net AssetsF-11124
Comparative Statement of Cash FlowsF-12125
Housing and Redevelopment Authority (Component Unit):
Balance Sheet - Governmental FundsG-1128
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental FundsG-2130
Subcombining Balance Sheet - Nonmajor Capital Project FundsG-3132
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Capital Project FundsG-4134
Agency Funds:
Combining Statement of Assets and LiablilitesH-1138
Statement of Changes in Assets and LiabilitiesH-2139
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2011
TABLE OF CONTENTS
EXHIBITPAGE
III. STATISTICAL SECTION (Unaudited)
Financial Trends:
Net Assets by ComponentTable 1144
Changes in Net AssetsTable 2146
Fund Balances - Governmental FundsTable 3150
Changes in Fund Balances - Governmental FundsTable 4152
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of Taxable PropertyTable 5154
Direct and Overlapping Property Tax Capacity RatesTable 6156
Principal Property TaxpayersTable 7158
Debt Capacity:
Property Tax Levies and CollectionsTable 8159
Ratios of Outstanding Debt by TypeTable 9160
Direct and Overlapping Govermental Activities DebtTable 10162
Demographic and Economic:
Legal Debt Margin InformationTable 11163
Pledged Revenue CoverageTable 12164
Operating Information:
Demographic and Economic StatisticsTable 13166
Principal EmployersTable 14167
Full-time-Equivalent City Government Employees by Function/ProgramTable 15168
Operating Indicators by Function/ProgramTable 16170
Capital Asset Statistics by Funciton/ProgramTable 17172
I. INTRODUCTORY SECTION
1
CITY OF
FRIDLEY
2
CITY OF FRIDLEY, MINNESOTA
ECONOMIC CONDITION AND OUTLOOK (CONTINUED)
Each one of these events diverted resources from other routine projects such as street
patching, water and sewer main flushing, and storm water pond maintenance.
Fortunately, the year ended with an ideal fall and early winter with warm weather late
into the year and virtually no snow through the end of the year. This allowed staff time
to catch up with projects that had been delayed earlier in the year. The nice weather also
spelled relief for personnel budgets, since additional overtime for snowplowing was not
needed.
Even with these setbacks, the City did undertake a number of initiatives. The following
list is a summary of those initiatives.
1.The Street Program continued the on-going efforts of resurfacing city
streets. The 2011 Street Program included streets within the Hyde Park
neighborhood including several blocks of Main Street. The final cost of
this project was approximately $545,000.
2.The lining of a 12” water main on North Innsbruck Drive was completed
at a final cost of $346,000. This project was done in collaboration with
two other cities, Golden Valley and Hutchinson. The City of Golden
Valley led this project by consolidating each city’s respective project
needs and bidding the project as one large project to take advantage of
economies of scale.
3.The City began a ten to twelve year campaign to replace the City’s
approximately 7,500 manual read water meters with automatic meter
reading water meters. Public Works staff is undertaking the change-out in
house, which saves contractual costs and allows the city to more easily
budget for new meters on an annual basis rather than a large one-time
purchase. Annual expenditure for the purchase of new water meters is
estimated to cost $100,000-125,000 per year.
For the Future
The future for the City of Fridley will continue to be filled with change. Future State
legislative actions continue to cause the City to react on the fly, whether it’s last minute
reductions to Local Government Aid (LGA) or a State shutdown due to political impasse on
the State level. City leadership is doing its due diligence to protect the City from these last
minute legislative changes that can have an immediate impact on the City’s financial position,
as well as long-range financial planning to insulate itself from future State financial crises. For
example, the 2012 budget removed LGA from the General Fund and moved it to the Capital
Improvements Fund, designating it for building improvements. Since the General Fund
consists mainly of operational costs that are relatively consistent from year-to-year, including
LGA in the General Fund as a revenue stream caused a lot of uncertainty on whether or not
budget projections would be realized.
5
CITY OF FRIDLEY, MINNESOTA
ECONOMIC CONDITION AND OUTLOOK (CONTINUED)
Recognizing the LGA as a one-time funding source in the Capital Improvements Fund
provides the City with more options if funding is reduced or not received in any one year. If
necessary, capital projects can be delayed, and by chance an unexpected allotment of LGA is
received, the City is able to move up future planned projects or complete prior delayed
projects.
In addition, the City also undertook an in-depth review of its Water, Sewer and Storm Water
utility rates. As part of this process the City projects fund balances and capital improvements
to each of the systems for the next twenty years and the projected user rates needed for each
fund for that same time period. One goal of the review was to determine necessary rate
adjustments needed to reduce the City’s dependence on debt financing for yearly capital
outlay.
Maintaining current service levels is a high priority for the City. Through the past several
years operating budgets have been reduced in order to balance budgets. These reductions have
forced City leadership to become more innovative and subsequently more efficient to maintain
service levels. The City will continue to investigate alternatives that will allow creative
solutions to the delivery of services.
FINANCIAL INFORMATION
INTERNAL CONTROLS
In developing and improving the City’s accounting system, consideration is given to the
adequacy of internal accounting controls. Internal accounting controls are designed to provide
reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from
unauthorized use or disposition and the reliability of financial records for preparing financial
statements and maintaining accountability for assets. The concept of reasonable assurance
recognizes that the cost of a control should not exceed the benefits likely to be derived and the
evaluation of costs and benefits requires estimates and judgments by management.
All internal control evaluations occur within the above framework. We believe that the City’s
internal accounting controls adequately safeguard assets and provide reasonable assurance of
the proper recording of financial transactions.
BUDGETARY CONTROLS
A complete budgetary system of accounts is maintained for the General and Special Revenue
Funds. Budgetary control is maintained in compliance with the City Charter requirements.
The Charter provides that it is the duty of the City Manager to strictly enforce the provisions of
the budget. The management policy of the City is such that the existence of a particular item
or appropriation in the approved budget does not mean that it will or must be automatically
expended. It is the policy of the City to control budgets at the expenditure category level.
6
CITY OF FRIDLEY, MINNESOTA
FINANCIAL INFORMATION (CONTINUED)
Budget adjustments between City divisions are made upon the approval of a resolution by the
City Council. The City Charter provides that the City Council shall not have power to increase
the total amount of the budget, whether by insertion of new items or otherwise, beyond the
estimated revenue unless the actual revenue exceeds such revenue estimates, and in that event
not beyond such actual revenue. There is a constant review process.
Expenditures are not approved until it has been determined that 1) the expenditure is necessary,
2) adequate funds have been appropriated, and 3) funds are available.
CASH MANAGEMENT
All temporary cash surpluses during the year are invested in various securities that State
Statutes permit. The City’s policy is to invest all available monies at competitive interest rates
in accordance with the City’s over-all fiscal plan coordinated with operating needs and
programs projected over the ensuing 12-month period. The investment yield for 2011 was
1.50%. For additional background information on deposits and investments, see Notes to the
Financial Statements.
RISK MANAGEMENT
The Self-Insurance Fund was set up to account for all revenues and expenditures associated
with the $50,000 deductible on the general liability policy. Self-insuring a larger deductible
has reduced the annual premiums that allow us to directly benefit from our good experience
rating. For 2012, the City increased its deductible to $75,000 to again take advantage of our
experience rating along with lower premium costs associated with higher deductibles. Our
average annual claim rate over the past four years has been approximately $30,000.
OTHER INFORMATION
PENSIONS
City of Fridley employees are covered by one of three pension plans:
1. Fridley Fire Relief Association for Volunteer Firefighters.
2. Public Employees Retirement Police and Fire Plan, covering the City’s full-time
Firefighters and Police Officers.
3. Coordinated Public Employees Retirement Plan, which covers other City civilian
employees. The employees covered by the Coordinated Public Employees Retirement
Plan are also covered by Social Security.
The City is currently making all pension contributions required by law. For additional
background information on the pension plans covering City employees, see Notes to the
Financial Statements.
7
CITY OF FRIDLEY, MINNESOTA
OTHER INFORMATION (CONTINUED)
INDEPENDENT AUDIT
Section 7.13 of the City Charter requires an annual audit to be made of the books of account,
financial records and transactions of all administrative departments of the City by a certified
public accountant or the State Auditor’s Office of the State of Minnesota. The accounting firm
of HLB Tautges Redpath, Ltd. was engaged by the City to render an opinion on the City’s
financial statements. The auditor’s report on the basic financial statements and combining and
individual fund statements and schedules is included in the Financial Section of this report.
ACKNOWLEDGMENTS
The preparation of this report on a timely basis could not have been accomplished without the
efficient and dedicated services of all members of the Finance Department, with special
recognition to Carol Meyer, Rebecca Kiernan, Greg Tirevold, Jean Michaels, and to our
auditors HLB Tautges Redpath, Ltd. for their professional guidance. We would also like to
express our appreciation to the Mayor and members of the City Council for their interest and
support in planning and conducting the financial operations of the City in a responsible and
progressive manner.
Respectfully submitted,
Darin R. Nelson Alan D. Folie
Finance Director Assistant Finance Director
8
CITY OF FRIDLEY, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
DECEMBER 31, 2011
ELECTED OFFICIALS
Term of Office
Expires December
MayorScott J.Lund2012
Councilmember At LargeRobert L. Barnette2012
Councilmember, Ward IJames T. Saefke2014
Councilmember, Ward IIDolores M. Varichak2014
Councilmember, Ward IIIAnn R. Bolkcom 2014
APPOINTED OFFICIALS
City ManagerWilliam W. Burns
City AttorneyDarcy M. Erickson
Prosecuting AttorneyCarl J. Newquist
City ClerkDebra A. Skogen
Department Heads:
Finance Director/TreasurerDarin R. Nelson
Director of Public Safety and Civil DefenseDonovan W. Abbott
Fire ChiefJohn D. Berg
Director of Public WorksJames P. Kosluchar
Director of Recreation and Natural ResourcesJack G. Kirk
Director of Community DevelopmentScott J. Hickok
Director of Human ResourcesDeborah K. Dahl
9
CITY ADMINISTRATIVE ORGANIZATIONAL STRUCTURE 2011
City of Fridley
General Fund Authorized Full-Time Positions - 101(A)
(Minimum Of 32 Hours A Week)
Total Authorized Full-Time Positions - 125 (A)
(Minimum Of 32 Hours A Week)
CITY MANAGEMENT (2)
City Manager
Admin Assistant to the City Manager
Non-General Fund
CABLE TV FUND
Cable Administrator
FINANCE (19)POLICE (43)FIRE (8)
Finance Director - TreasurerPublic Safety DirectorFire Chief
AccountantAdministrative AssistantAdministrative Assistant
Assistant Chief
ACCOUNTING (4)PATROL OPERATIONS (27)
(3) Captains
Assistant Finance DirectorCaptain
Payroll Coordinator(5) Sergeants
Accounting Specialist(21) Patrol Officers
RENTAL INSPECTIONS (2)
Acctg-Data Processing Clerk
Rental Inspection Asst.
ASSESSING (2)TECHNICAL SUPPORT (13)
Full-time Firefighter
City AssessorCaptain
AppraiserLieutenant
HUMAN RESOURCES (2)
(3) Detectives
MIS (2)
Pawn Detective
IT ManagerHuman Resources Director
School Resource Officer
PC TechnicianAnoka-Henn DTF SergeantAdministrative Assistant
Special Projects Coordinator
CITY CLERK - RECORDS (2)
Crime Prevention Specialist
City Clerk
Office Supervisor
Licensing & Records Technician(2) Police Technicians
(Also 3 at 32 hrs/week)
Non-General FundNon-General Fund
LIQUOR (5)DEA Detective (1)
Liquor Operations Manager
Fed Agency-Drug Enforcement Agency
(4) Lead Liquor Store Clerks
WATER ADMIN (2)
Utility Billing Clerk
Acctg-Data Processing Clerk
(A) An "Authorized Position" is defined as one that works at least 32 hours a week and receives a full-time benefit package.
10
PUBLIC WORKS (34)PARKS &COMMUNITY
RECREATION (8)DEVELOPMENT (9)
Public Works Director
Parks & Recreation DirectorCommunity Development
Admin Assist/Main't Coord
Director
Recreation Office Coordinator
(2) Program SupervisorsOffice Coordinator
ENGINEERING (3)
Sr Citizens Program Supervisor
Assistant Public Works DirectorBUILDING INSPECTION (3)
Chief Building Official
(2) Engineering Technician
Building Inspector
PW MAINTENANCE (19)
Permit Technician
Fleet Services SupervisorPLANNING
Planning Manager
(2) Mechanic
Street Supervisor
(8) Public Service Worker
Parks Supervisor
(6) Public Service Worker
Non-General FundNon-General FundNon-General Fund
WATER (5)SPRINGBROOK NATURESOLID WASTE
Water SupervisorCENTER (3)
Environmental Planner
Nature Center Director
(4) Public Service Worker
SECTION 8 HOUSING
Program Supervisor
Coordinator
SEWER (5)
Program Admin Assist
(32 hrs/week)
Sewer Supervisor
HRA
(4) Public Service Worker
Assistant Executive Director
11
CITY OF
FRIDLEY
12
II. FINANCIAL SECTION
13
CITY OF
FRIDLEY
14
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Fridley, we offer readers of the City of Fridley’s financial
statements this narrative overview and analysis of the financial activities of the City for the
fiscal year ended December 31, 2011. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter
of transmittal, which can be found on pages 3 through 8 of this report.
Financial Highlights
The assets of the City of Fridley exceeded its liabilities at the close of the most recent fiscal
year by $62,698,056 (Net assets). Of this amount, $30,157,288 (unrestricted net assets) 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 2011, the City’s total net assets decreased by $296,760.
As of the close of the current fiscal year, the City of Fridley’s governmental funds reported
combined ending fund balances of $22,522,334. Of this total amount, $2,529,873, or 11% is
restricted through legal restrictions or third-party agreements.
At the end of the current fiscal year the general fund balance of $6,773,555 included $65,271
in nonspendable and $6,708,284 in unassigned fund balance.
The City’s total debt decreased by $1,312,481 during the current fiscal year, it went from
$17,251,722 to $15,939,241.
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the City of Fridley’s
basic financial statements. The City’s basic financial statements comprise three components:
1) government-wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains other supplementary information in addition
to the basic financial statements themselves.
Government-wide financial statements
. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Fridley’s finances, in a
manner similar to a private-sector business.
The statement of net assets presents information on all of the City of Fridley’s assets and
liabilities, with the difference between the two reported as net assets. Over time, increases or
decreases in net assets may serve as a useful indicator of whether the financial position of the
City of Fridley is improving or deteriorating.
17
Managements Discussion and Analysis
’
The statement of activities presents information showing how the City’s net assets changed
during the most recent fiscal year. All changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will
only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused
vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Fridley
that are principally supported by taxes and intergovernmental revenues (governmental
activities) from other functions that are intended to recover all or a significant portion of their
costs through user fees and charges (business-type activities). The governmental activities of
the City of Fridley include general government, public safety, public works, community
development, and recreation and naturalist. The business-type activities of the City of
Fridley include liquor, water, sewer and storm water.
The government-wide financial statements can be found on pages 29 through 30 of this
report.
Fund financial statements
. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The
City of Fridley, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City
of Fridley can be divided into three categories: governmental funds, proprietary funds, and
fiduciary funds.
Governmental funds
. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government’s near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government-wide
financial statement. By doing so, readers may better understand the long-term impact of the
City's near term financial decisions. Both the governmental fund balance sheet and
governmental fund statement of revenues, expenditures, and change in fund balances provide
a reconciliation to facilitate this comparison between governmental funds and governmental
activities.
18
Managements Discussion and Analysis
’
The City of Fridley maintains five individual major governmental funds. Information is
presented separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances for the general fund, grant
management fund, debt service fund, special assessment construction capital projects fund
and capital improvements fund all of which are considered to be major funds.
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-major governmental funds is provided in the form
of combining statements elsewhere in this report.
The City of Fridley adopts an annual appropriated budget for its general fund, special
revenue funds and capital improvements capital projects fund.
A budgetary comparison statement has been provided for those funds to demonstrate
compliance with this budget.
The basic governmental fund financial statements can be found on pages 32 through 37 of
this report.
Proprietary funds
. The City of Fridley maintains four enterprise funds and three internal
service funds as a part of its proprietary fund type. Enterprise funds are used to report the
same functions presented as business-type activities in the government-wide financial
statements. The City of Fridley uses enterprise funds to account for its liquor, water, sewer,
and storm water operations. The City of Fridley uses internal service funds to account for its
employee benefits, self insurance and information systems. Because these services
predominately benefit governmental rather than business-type functions, they have been
included within governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the water, sewer, storm water and liquor operations, all of which are
considered to be major funds of the City of Fridley. Conversely, the internal service funds
are combined into a single, aggregated presentation in the proprietary fund financial
statements. Individual fund data for the internal service funds is provided in the form of
combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 38 through 43 of this
report.
Fiduciary funds
. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government-wide
financial statements because the resources of those funds are not available to support the City
of Fridley’s own program. The accounting used for fiduciary funds is much like that used for
proprietary funds.
The basic fiduciary fund financial statement can be found on page 44 of this report.
19
Managements Discussion and Analysis
’
Notes to the financial statements
. The notes provide additional information that is essential
to a full understanding of the data provided in the government–wide and fund financial
statements. The notes to the financial statements can be found on pages 45 through 78 of this
report.
Other information.
The combining statements referred to earlier in connection with the
non-major governmental funds are presented immediately following the required
supplementary information on budgetary comparisons. Combining and individual fund
statements and schedules can be found on pages 90 through 140 of this report.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's
financial position. In the case of the City of Fridley, assets exceeded liabilities by
$62,698,056at the close of the most recent fiscal year.
The largest portion of the City of Fridley's net assets ($28,897,573 or 46 percent) reflects its
investment in capital assets (e.g. land, buildings, machinery and equipment) less any related
debt used to acquire those assets that is still outstanding. The City of Fridley uses these
capital assets to provide services to citizens; consequently, these assets are not available for
future spending. Although the City of Fridley's investment in its capital assets is reported net
of related debt, it should be noted that the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be used to liquidate
these liabilities.
CITY OF FRIDLEY'S NET ASSETS
Governmental ActivitiesBusiness-TypeTotals
201020112010201120102011
Current and other assets$27,812,083$28,999,522$11,519,394$10,438,978$39,331,477$39,438,500
Capital assets23,377,14321,874,63920,104,22119,755,83243,481,36441,630,471
Total assets$51,189,226$50,874,161$31,623,615$30,194,810$82,812,841$81,068,971
Long-term liabilities outstanding$7,967,110$7,108,922$7,681,212$7,129,457$15,648,322$14,238,379
Other liabilities2,980,6512,797,7511,189,0521,334,7854,169,7034,132,536
Total liabilities$10,947,761$9,906,673$8,870,264$8,464,242$19,818,025$18,370,915
Net assets:
Invested in capital assets, net of related debt$16,408,075$14,554,639$15,105,503$14,342,934$31,513,578$28,897,573
Restricted3,401,7763,392,382 - - 3,401,7763,392,382
Unrestricted20,431,61423,020,4677,647,8487,387,63428,079,46230,408,101
Total net assets$40,241,465$40,967,488$22,753,351$21,730,568$62,994,816$62,698,056
20
Managements Discussion and Analysis
’
A portion of the of the City of Fridley's net assets represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net
assets ($30,408,101) may be used to meet the City's ongoing obligations to citizens and
creditors.
At the end of the current fiscal year, the City of Fridley is able to report positive balances in
all three categories of net assets, 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 of Fridley's net assets by $726,023. Capital grants
and contributions decreased by $569,732 due to the decrease in street construction activity.
Grants and contributions not restricted to specific programs decreased by $1,623,509 due to
lower payments from the HRA, and Public works expenses decreased by $893,696 due to
this same increase in street construction activity.
City of Fridley's Changes in Net Assets
Governmental ActivitiesBusiness-Type ActivitiesTotals
201020112010201120102011
Revenues:
Program revenues:
Charges for services$3,405,054$3,957,600$11,721,331$12,014,399$15,126,385$15,971,999
Operating grants and contributions939,1231,148,315 - - 939,1231,148,315
Capital grants and contributions1,952,9341,374,651 - - 1,952,9341,374,651
General revenues: - -
Property taxes10,141,11910,126,395 - - 10,141,11910,126,395
Grants and contributions not
restricted to specific programs2,718,9791,095,470 - - 2,718,9791,095,470
Unrestricted investment earnings208,565347,18457,098106,274265,663453,458
Gain (loss) on sale of property20,11214,937112 - 20,22414,937
Other - - - - - -
Total revenues19,385,88618,064,55211,778,54112,120,67331,164,42730,185,225
Expenses:
General government3,272,4703,321,402 - - 3,272,4703,321,402
Public safety6,756,6986,720,641 - - 6,756,6986,720,641
Public works5,916,7765,023,080 - - 5,916,7765,023,080
Community development966,909973,198 - - 966,909973,198
Recreation and naturalist1,521,1061,387,133 - - 1,521,1061,387,133
Interest on long-term debt268,892263,075 - - 268,892263,075
Liquor - - 4,542,1804,568,2824,542,1804,568,282
Water - - 2,438,3992,688,8462,438,3992,688,846
Sewer - - 4,617,9914,750,4674,617,9914,750,467
Storm water - - 421,630785,861421,630785,861
Total expenses 18,702,85117,688,52912,020,20012,793,45630,723,05130,481,985
Increase (decrease) in net assets before transfers683,035376,023(241,659)(672,783)441,376(296,760)
Transfers350,000350,000(350,000)(350,000) - -
Increase in net assets1,033,035726,023(591,659)(1,022,783)441,376(296,760)
Net assets - January 139,208,43040,241,46523,345,01022,753,35162,553,44062,994,816
Net assets - December 31$40,241,465$40,967,488$22,753,351$21,730,568$62,994,816$62,698,056
21
Managements Discussion and Analysis
’
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenses:
Governmental Activities -Revenues
Unrestricted investment
earnings
Grants and contributions not restricted to
2%
specific programs
Charges for services
6%
22%
Operating grants and
contributions
6%
Capital grants and
contributions
8%
56%
Property taxes
Governmental Activities -Expenses
Interest on
Recreation
long-term debt
Community
and naturalist
General government
1%
Developement
8%
19%
6%
28%
Public works
38%
Public safety
22
Managements Discussion and Analysis
’
Business-Type Activities
Business-type activities decreased net assets by $1,022,783. Charges for utility services
($7,120,963) did not keep up with expenses for the utilities ($8,225,174).This is in large
part due to sewer charges to utility customers not keeping up with sewer disposal charges
from the Metropolitan Council Environmental Services to the City of Fridley:
1%
99%
Business-Type Activities -Expenses
Storm water
6%
Water
Liquor
21%
36%
`
37%
Sewer
23
Managements Discussion and Analysis
’
Financial Analysis of the Government's Funds
Governmental Funds
. The focus of the City of Fridley’s governmental funds is to provide
information on near-term inflows, outflows, and balances of spendable resources. Such
information is useful in assessing the City of Fridley’s financing requirements. In particular,
unrestricted fund balance may serve as a useful measure of a government’s net resources
available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City of Fridley's governmental funds reported
combined ending fund balances of $22,522,334.
The General Fund’s fund balance increased by $988,336 in 2011. This was much better than
the $267,954 decrease originally budgeted for.The key reason for this improvement is not
budgeting for Local Government Aid (LGA) and then receiving $762,495 in LGA.
The Special Assessment Construction Capital Projects Fund’s fund balance increased by
$400,528 in 2011. This was due to a large transfer from the Capital Improvements Fund.
The Cable TV Fund’s fund balance increased by $100,499 in 2011. This was due to
franchise fees exceeding expenditures.
Proprietary funds
. The City of Fridley’s proprietary funds provide the same type of
information found in the government-wide financial statements, but in more detail.
The unrestricted net assets in the respective proprietary funds are liquor $584,030, water
$2,841,754, sewer $2,896,346 and storm water $1,065,504. The liquor, water, sewer, and
storm water funds had decreases in net assets of $24,085, $210,858, 479,415 and $547,724
respectively.
Budgetary Highlights
General Fund
The original budget was amended to move $506,896 in state aid credits from taxes to
intergovernmental revenue. The budget for police expenditures was increased by $83,000,
mainly as a result of settled union contracts. The original budget for contingency was
decreased by $14,918 during the year. This was due to its budget being allocated to budgets
in other departments.
Expenditures in total were less than the final budgetary estimates by $599,948. Significant
variances include the Municipal Center department which expended $31,760 less than
anticipated, the Public Works and Parks department which expended $172,225 less than
anticipated, the Police department which expended $79,374 less than anticipated and the
Parks and Recreation department which expended $92,861 less than anticipated.
24
Managements Discussion and Analysis
’
Capital Asset and Debt Administration
Capital assets
. The City of Fridley’s, investment in capital assets for its governmental and
business type activities as of December 31, 2011, amounts to $41,630,471 (net of
accumulated depreciation). This investment in capital assets includes land, buildings and
structures, improvements other than buildings, machinery and equipment, infrastructure and
construction in progress.
City of Fridley’s Capital Assets
(Net of Depreciation
)
Governmental ActivitiesBusiness-Type ActivitiesTotals
201020112010201120102011
Land$2,841,516$2,841,516$306,477$306,477$3,147,993$3,147,993
Buildings and structures 2,032,153 1,755,938 1,644,950 1,558,316 3,677,103 3,314,254
Improvements other than buildings 2,033,251 1,785,230 7,345,743 7,065,003 9,378,994 8,850,233
Machinery and equipment 1,900,863 1,828,453 579,499 486,909 2,480,362 2,315,362
Infrastructure 14,563,360 13,657,502 10,227,552 10,339,127 24,790,912 23,996,629
Construction in progress 6,000 6,000 - - 6,000 6,000
Total Capital Assets$23,377,143$21,874,639$20,104,221$19,755,832$43,481,364$41,630,471
Additional information on the City of Fridley’s capital assets can be found in Note 4.
Long-term debt
. At the end of the current fiscal year, the City of Fridley had total bonded
debt outstanding of $14,945,000, a decrease of $1,355,000 from 2010. $6,770,000 of this is
for general obligation improvement debt which is supported by special assessments and a
property tax levy, an additional $550,000 is for general obligation equipment certificate debt
which financed the City’s capital equipment purchases, and $7,625,000 is general obligation
utility revenue bonds which financed utility improvements.
In addition, there is long-term debt in the amount of $996,706 for compensated absences.
Additional information on the City of Fridley’s long-term debt can be found in Note 5.
25
Managements Discussion and Analysis
’
City of Fridley’s Outstanding Debt
General Obligation Improvement Bonds, General Obligation Tax Increment Bonds, General
Obligation Equipment Certificates, General Obligation Revenue Bonds, and Compensated
Absences (excluding bond discounts) are as follows:
Governmental ActivitiesBusiness-Type ActivitiesTotals
201020112010201120102011
General Obligation Improvement Bonds7,570,000$ $ 6,770,000$ -$ -$ 7,570,000$ 6,770,000
General Obligation Revenue Bonds - - 8,160,000 7,622,535 8,160,000 7,622,535
General Obligation Equipment Certificates550,000550,000 - - 550,000 550,000
Compensated Absences 973,963 996,706 - - 973,963 996,706
Total$ 9,093,963$ 8,316,706$ 8,160,000$ 7,622,535$ 17,253,963$ 15,939,241
The City of Fridley has an Aa1 rating from Moody's Investors Service.
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of
total Estimated Market Value. The current debt limitation for the City of Fridley is
$70,577,037. Only $550,000 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 of Fridley’s finances for all those with an interest in the government’s finances.
Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to the Finance Director, 6431 University Avenue
NE, Fridley, Minnesota 55432.
26
BASIC FINANCIAL STATEMENTS
27
CITY OF
FRIDLEY
28
Exhibit A-1
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2011
With comparative totals for December 31, 2010
Component Unit
Primary GovernmentHousing & Redevelopment
GovernmentalBusiness-TypeTotalsAuthority
ActivitiesActivities2011201020112010
Assets:
Cash and investment$25,723,102$5,097,956$30,821,05$29,992,062$9,018,618$8,106,540
s8
Restricted cash and investment - 2,209,6432,209,6433,159,041 - -
s
Receivables:
Accounts199,9842,297,3612,497,3452,399,71046,68745,796
Taxes378,739 - 378,739386,62131,75462,665
Special assessments2,044,3418,9352,053,2761,912,576 - -
Mortgage - - - - 1,061,2001,042,788
Interest162,150 - 162,150116,57644,65623,355
Due from component unit9,443 - 9,44364,038 - -
Due from other governments416,4924,741421,233402,890 - -
Prepaid items - 279,839279,839285,1034,3993,638
Inventories - at cost65,271540,503605,774612,860 - -
Land held for resale - - - - 3,599,3054,251,051
Capital assets (net of accumulated depreciation):
Land2,841,516306,4773,147,9933,147,9932,023,5112,023,511
Buildings and structures1,755,9381,558,3163,314,2543,677,103 - -
Improvements other than buildings1,785,2307,065,0038,850,2339,378,994 - -
Machinery and equipment1,828,453486,9092,315,3622,480,362 - -
Infrastructure13,657,50210,339,12723,996,62924,790,912 - -
Construction in progress6,000 - 6,0006,000 - -
Total assets50,874,16130,194,81081,068,97182,812,84115,830,13015,559,344
Liabilities:
Due to primary government - - - - 9,44364,038
Accounts payable234,521433,018667,539527,830496,928540,294
Deposits payable 2,111 - 2,11117,711 - -
Contracts payable1,083104,711105,794296,605 - -
Due to other governments20,64773,88994,536183,485 - -
Salaries payable543,65655,111598,767594,516 - -
Accrued interest payable107,723113,055220,778239,596 - -
Compensated absences payable:
Due within one year767,935 - 767,935799,284 - -
Due in more than one year228,771 - 228,771174,679 - -
Other post employment benefits payable:
Due in more than one year500,15161,923562,074530,884 - -
Unearned revenue180,075 - 180,075175,676 - -
Bonds payable:
Due within one year940,000554,7441,494,7441,335,000 - -
Due in more than one year6,380,0007,067,79113,447,79114,942,759 - -
Total liabilities9,906,6738,464,24218,370,91519,818,025506,371604,332
Net assets:
Invested in capital assets, net of related debt14,554,63914,342,93428,897,57330,651,7222,023,5112,023,511
Restricted for:
Debt service3,335,579 - 3,335,5793,345,972 -
Tax increment purposes - - - - 1,611,4681,589,213
Police forfeitures71,49171,49125,573 - -
Cable television equipment236,125 - 236,125245,601 - -
Unrestricted22,769,6547,387,63430,157,28828,725,94811,688,78011,342,288
Total net assets$40,967,488$21,730,568$62,698,056$62,994,816$15,323,759$14,955,012
The accompanying notes are an integral part of these financial statements.
29
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2011
With comparative totals for the year ended December 31, 2010
Program Revenues
Operating
Charges ForGrants and
ExpensesServicesContributions
Functions/Programs
Primary government:
Governmental activities:
General government$3,321,402$1,886,783$66,241
Public safety6,720,641796,308606,692
Public works5,023,080378,142335,293
Community development973,198570,685111,092
Parks, recreation and naturalist1,387,133325,68228,997
Interest on long-term debt263,075 - -
Total governmental activities17,688,5293,957,6001,148,315
Business-type activities:
Liquor4,568,2824,893,436 -
Water2,688,8462,418,226 -
Sewer4,750,4674,245,654 -
Storm water785,861457,083 -
Total business-type activities12,793,45612,014,3990
Total primary government$30,481,985$15,971,999$1,148,315
Component unit:
Housing and Redevelopment Authority$2,436,976$9,600$ -
Total component unit$2,436,976$9,600$0
General revenues:
Property taxes
Tax increment collections
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Gain on sale of property
Other
Transfers
Total general revenues
and transfers
Change in net assets
Net assets - January 1
Net assets - December 31
The accompanying notes are an integral part of these financial statements.
30
Exhibit A-2
Net (Expense) Revenue and Changes in Net AssetsComponent Unit
Primary GovernmentHousing & Redevelopment
Capital
TotalsAuthority
Grants andGovernmentalBusiness-Type
ContributionsActivitiesActivities2011201020112010
$ - ($1,368,378)$ - ($1,368,378)($1,468,906)$ - $ -
- (5,317,641) - (5,317,641)(5,526,258) - -
1,374,651(2,934,994) - (2,934,994)(3,687,482) - -
- (291,421) - (291,421)(334,506) - -
- (1,032,454) - (1,032,454)(1,119,696) - -
- (263,075) - (263,075)(268,892) - -
1,374,651(11,207,963)0(11,207,963)(12,405,740)00
- - 325,154325,154313,700 - -
- - (270,620)(270,620)(47,563) - -
- - (504,813)(504,813)(565,191) - -
- - (328,778)(328,778)185 - -
00(779,057)(779,057)(298,869)00
$1,374,651(11,207,963)(779,057)(11,987,020)(12,704,609)$0$0
$ -($2,427,376)($5,909,800)
$0(2,427,376)(5,909,800)
10,126,395 - 10,126,39510,141,119448,347470,659
- - - - 1,769,3811,709,840
1,095,470 - 1,095,4702,718,97934,60333,661
347,184106,274453,458265,663134,746112,166
14,937 - 14,93720,224 - 233,170
- - - - 409,04621,143
350,000(350,000) - - - -
11,933,986(243,726)11,690,26013,145,9852,796,1232,580,639
726,023(1,022,783)(296,760)441,376368,747(3,329,161)
40,241,46522,753,35162,994,81662,553,44014,955,01218,284,173
$40,967,488$21,730,568$62,698,056$62,994,816$15,323,759$14,955,012
The accompanying notes are an integral part of these financial statements.
31
CITY OF FRIDLEY, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2011
Grant
ManagementDebt Service
General
Assets
Cash and investments$6,854,348$179,521$8,058,950
Receivables:
Accounts77,531 - -
Taxes340,149 -27,995
Special assessments63,253 -1,716,673
Interest162,150 - -
Due from other funds121,854 - -
Due from component unit9,351 - -
Due from other governments25,7993,995 -
Inventories, at cost65,271 - -
Total assets$7,719,706$183,516$9,803,618
Liabilities and Fund Balances
Liabilities:
Accounts payable$175,134$60$ -
Deposits payable2,111 - -
Contracts payable - - -
Due to other governments16,288 - -
Due to other funds - - -
Salaries payable420,3363,382 -
Deferred revenue332,282180,0741,737,676
Total liabilities946,151183,5161,737,676
Fund balance:
Nonspendable65,271 - -
Restricted - -2,222,257
Committed - - -
Assigned - -5,843,685
Unassigned6,708,284 - -
Total fund balance6,773,55508,065,942
Total liabilities and fund balance$7,719,706$183,516$9,803,618
The accompanying notes are an integral part of these financial statements.
32
Exhibit A-3
Special
AssessmentOtherTotals
ConstructionCapitalGovernmentalIntra-ActivityGovernmental
Capital ProjectsImprovementsFundsEliminationsFunds
2011
$591,972$5,282,704$1,494,434$ -$22,461,929
-5,660116,793 -199,984
-7609,835 -378,739
25,125239,290 - -2,044,341
- - - -162,150
- - -(121,854) -
- - - -9,351
354,161 -32,537 -416,492
- - - -65,271
$971,258$5,528,414$1,653,599($121,854)$25,738,257
$ -$24,048$27,003$ -$226,245
- - - -2,111
1,083 - - -1,083
3,976 -373 -20,637
- -121,854(121,854) -
- -19,044 -442,762
25,125240,0487,880 -2,523,085
30,184264,096176,154(121,854)3,215,923
- - - -65,271
- -307,616 -2,529,873
941,074 -1,267,993 -2,209,067
-5,264,318 - -11,108,003
- -(98,164) -6,610,120
941,0745,264,3181,477,445022,522,334
$971,258$5,528,414$1,653,599($121,854)$25,738,257
Fund balance reported above$22,522,334
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds.21,583,868
Other long-term assets are not available to pay for current-period expenditures and,
therefore, are deferred in the funds.2,343,010
Long-term liabilities, including bonds payable, are not due and payable in the
current period and, therefore, are not reported in the funds.(7,927,874)
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 assets.2,446,150
Net assets of governmental activities$40,967,488
The accompanying notes are an integral part of these financial statements.
33
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2011
With comparative totals for the year ended December 31, 2010
Grant
ManagementDebt Service
General
Revenues:
Taxes$9,057,879$ - $740,790
Special assessments29,577 - 504,053
Licenses and permits847,392 - -
Intergovernmental revenue1,622,368240,3261,381
Charges for services1,832,283 - -
Fines and forfeits165,314 - -
Investment income85,703 - 111,034
Miscellaneous:
Other203,994 - -
Received from component unit - - -
Total revenues13,844,510240,3261,357,258
Expenditures:
Current:
General government2,463,920 - -
Public safety6,183,397 - -
Public works3,055,401 - -
Community development738,716240,326 -
Parks, recreation and naturalist770,983 - -
Debt service0 - 1,074,768
Capital outlay282,320 - -
Total expenditures13,494,737240,3261,074,768
Excess (deficiency) of revenues
over (under) expenditures349,7730282,490
Other financing sources (uses):
Bonds issued - - -
Bond premiums - -
Proceeds from sale of capital assets15,096 - -
Transfers in623,467 - -
Transfers out - - (266,705)
Total other financing sources (uses)638,5630(266,705)
Net change in fund balance988,336015,785
Fund balance - January 15,785,219 - 8,050,157
Fund balance - December 31$6,773,555$0$8,065,942
The accompanying notes are an integral part of these financial statements.
34
Exhibit A-4
Special
AssessmentOther
ConstructionCapitalGovernmentalIntra-Activity
Capital ProjectsImprovementsFundsEliminations
Totals Governmental Funds
20112010
$ - $190$314,261$ - $10,113,120$10,178,369
3,451135,848 - - 672,929622,100
- - 237,708 - 1,085,100973,985
72,692476,07186,172 - 2,499,0103,310,631
358,247 - 370,395 - 2,560,9252,080,349
- - 93,058 - 258,372240,880
1,36579,56319,625 - 297,290176,257
- 3,000118,290 - 325,284237,909
- - - - - 1,755,062
435,755694,6721,239,509017,812,03019,575,542
56,4048,166636,621 - 3,165,1113,010,835
- - 101,261 - 6,284,6586,329,354
5,699 - - - 3,061,1003,111,918
- - - - 979,042967,487
- 26,863397,564 - 1,195,4101,292,783
- - - - 1,074,7682,778,055
583,12471,71027,256 - 964,4101,812,087
645,227106,7391,162,702016,724,49919,302,519
(209,472)587,93376,80701,087,531273,023
- - - - - 1,765,000
- 53,163
- - - - 15,09616,500
691,40330,00016,705(981,575)380,0001,235,467
(81,403)(610,000)(23,467)981,575 - (885,467)
610,000(580,000)(6,762)0395,0962,184,663
400,5287,93370,04501,482,6272,457,686
540,5465,256,3851,407,400 - 21,039,70718,582,021
$941,074$5,264,318$1,477,445$0$22,522,334$21,039,707
The accompanying notes are an integral part of these financial statements.
35
CITY OF
FRIDLEY
36
Exhibit A-5
CITY OF FRIDLEY, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2011
With comparative amounts for the year ended December 31, 2010
20112010
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)$1,482,627$2,457,686
Governmental funds report capital outlays as expenditures. However,
in the statement of activities the cost of those assets is allocated
over their estimated useful lives and reported as depreciation
expense. This is the amount by which capital outlays exceeded
depreciation in the current period.(1,514,711)(1,562,725)
Revenues in the statement of activities that do not provide current
financial resources are not reported as revenues in the funds.166,234(265,341)
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 assets. This amount is the net
effect of these differences in the treatment of long-term debt and
related items.800,000680,000
Internal service funds are used by management to charge the cost of
certain activities to individual funds. This amount is net revenue
attributable to governmental activities.(191,650)(140,049)
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.(27,720)(157,405)
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.11,24320,869
Change in net assets of governmental activities (Exhibit A-2)$726,023$1,033,035
The accompanying notes are an integral part of these financial statements.
37
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2011
With comparative totals for December 31, 2010
Business-Type Activities - Enterprise Funds
Assets:LiquorWater
Current assets:
Cash and investments$491,909$2,155,219
Restricted cash and investments - 1,876,879
Accounts receivable - 998,582
Special assessments receivable - 6,276
Due from other governments - -
Prepaid items - -
Inventories - at cost522,52717,976
Total current assets1,014,436 5,054,932
Noncurrent assets:
Capital assets:
Land151,946154,531
Buildings and structures130,2113,124,015
Improvements other than buildings650,2458,934,668
Machinery and equipment208,9301,586,836
Infrastructure - 9,244,229
Total capital assets1,141,332 23,044,279
Less: Allowance for depreciation(776,506)(12,118,922)
Net capital assets364,82610,925,357
Total noncurrent assets364,82610,925,357
Total assets1,379,26215,980,289
Liabilities:
Current liabilities:
Accounts payable346,65471,883
Accrued interest payable - 101,383
Contracts payable - 93,678
Due to other governments49,00622,317
Salaries payable17,71621,089
Payroll deductions payable - -
Compensated absences payable - -
Bonds payable - current - 554,744
Total current liabilities413,376 865,094
Noncurrent liabilities:
Other post employment benefits17,03025,955
Compensated absences - noncurrent - -
Bonds payable - noncurrent - 6,157,791
Total noncurrent liabilities17,030 6,183,746
Total liabilities430,4067,048,840
Net assets:
Invested in capital assets, net of related debt364,8266,089,695
Unrestricted584,0302,841,754
Total net assets$948,856$8,931,449
The accompanying notes are an integral part of these financial statements.
38
Exhibit A-6
Governmental
Activities -
Internal Service
Funds
Business-Type Activities - Enterprise FundsTotals
SewerStorm Water20112010
$1,177,498$1,273,330$5,097,956$5,270,973$3,261,173
332,764 -2,209,6433,159,041 -
1,169,365129,4142,297,3612,224,487 -
-2,6598,93522,81392
4,741 -4,7413,872 -
279,839 -279,839285,103 -
- -540,503553,105 -
2,964,207 1,405,403 10,438,978 11,519,394 3,261,265
- -306,477306,477 -
8,770 -3,262,9963,262,996 -
2,651,0232,004,40514,240,34113,964,553 -
1,036,771172,2153,004,7522,984,7711,706,407
6,969,3037,116,94823,330,48022,697,021 -
10,665,867 9,293,568 44,145,046 43,215,818 1,706,407
(6,517,214)(4,976,572)(24,389,214)(23,111,597)(1,415,636)
4,148,6534,316,99619,755,83220,104,221290,771
4,148,6534,316,99619,755,83220,104,221290,771
7,112,8605,722,39930,194,81031,623,6153,552,036
12,7761,705433,018332,8338,286
6,6675,005113,055120,630 -
10,608425104,711 - -
2,566 -73,889143,918 -
16,306 -55,11156,671 -
- - - -100,894
- - - -767,935
- -554,744535,000 -
48,923 7,135 1,334,528 1,189,052 877,115
18,938 -61,92358,453 -
- - - -228,771
520,000390,0007,067,7917,622,759 -
538,938 390,000 7,129,714 7,681,212 228,771
587,861397,1358,464,2428,870,2641,105,886
3,628,6534,259,76014,342,93415,105,503290,771
2,896,3461,065,5047,387,6347,647,8482,155,379
$6,524,999$5,325,264$21,730,568$22,753,351$2,446,150
The accompanying notes are an integral part of these financial statements.
39
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For The Year Ended December 31, 2011
With comparative totals for the year ended December 31, 201
0
Business-Type Activities - Enterprise Funds
LiquorWater
Sales$4,893,241
Cost of sales(3,681,988) -
Gross profit1,211,2530
Operating revenues:
Customer billings - 2,416,043
Charges for services - -
Other revenues1952,183
Total operating revenues195 2,418,226
Total gross profit and operating revenues1,211,448 2,418,226
Operating expenses:
Personal services492,898806,978
Supplies and other charges:
Disposal charges - -
Other364,069910,002
Depreciation29,327727,479
Total operating expenses886,294 2,444,459
Operating income (loss)325,154 (26,233)
Nonoperating revenues (expenses):
Intergovernmental revenue - -
Investment income76159,762
Insurance reimbursement - -
Interest expense - (244,387)
Other - -
Gain (loss) on disposal of capital assets - -
Total nonoperating revenues (expenses)761 (184,625)
Income (loss) before transfers325,915 (210,858)
Transfers:
Transfers out(350,000) -
Change in net assets(24,085)(210,858)
Net assets - January 1 972,9419,142,307
Net assets - December 31$948,856$8,931,449
The accompanying notes are an integral part of these financial statements.
40
Exhibit A-7
Governmental
Activities -
Business-Type Activities - Enterprise Funds
Internal Service
Funds
SewerStorm WaterTotals
20112010
$ -$ -$4,893,241$4,855,880$ -
- -(3,681,988)(3,655,045) -
001,211,2531,200,8350
4,245,654456,4577,118,1546,855,441 -
-3343346,75429,402
- -2,3782,821 -
4,245,654 456,791 7,120,866 6,865,016 29,402
4,245,654 456,791 8,332,119 8,065,851 29,402
702,931235,7002,238,5072,122,70847,631
3,440,691 -3,440,6913,460,966 -
279,177300,4201,853,6681,246,60083,928
311,746237,7871,306,3391,293,374131,900
4,734,545 773,907 8,839,205 8,123,648 263,459
(488,891)(317,116)(507,086)(57,797)(234,057)
- - - -9,943
25,39820,353106,27457,09849,894
- - - -12,729
(15,922)(11,954)(272,263)(241,507) -
-292292435 -
- - -112(159)
9,476 8,691 (165,697)(183,862)72,407
(479,415)(308,425)(672,783)(241,659)(161,650)
- -(350,000)(350,000)(30,000)
(479,415)(308,425)(1,022,783)(591,659)(191,650)
7,004,4145,633,68922,753,35123,345,0102,637,800
$6,524,999$5,325,264$21,730,568$22,753,351$2,446,150
The accompanying notes are an integral part of these financial statements.
41
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2011
With comparative totals for the year ended December 31, 2010
Business-Type Activities - Enterprise Funds
LiquorWater
Cash flows from operating activities:
Receipts from customers and users$4,893,436$2,455,529
Receipts from interfund services provided
Payment to suppliers(3,955,343)(799,655)
Payment to employees(491,149)(808,038)
Net cash flows from operating activities446,944847,836
Cash flows from noncapital financing activities:
Transfers out(350,000) -
Special assessment collections - -
Net cash flows from
noncapital financing activities(350,000)0
Cash flows from capital and related
financing activities:
Acquisition of capital assets -(704,805)
Intergovernmental - -
Insurance reimbursement - -
Principal paid on revenue bonds -(535,000)
Proceeds from sale of bonds - -
Interest and paying agent fees on revenue bonds -(252,284)
Proceeds from sale of capital assets - -
Net cash flows from capital
and related financing activities0(1,492,089)
Cash flows from investing activities:
Investment income76159,762
Net increase (decrease) in cash and cash equivalents97,705(584,491)
Cash and cash equivalents - January 1394,2044,616,589
Cash and cash equivalents - December 31$491,909$4,032,098
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $325,154($26,233)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation29,327727,479
Changes in assets and liabilities:
Decrease (increase) in receivables -37,303
Decrease (increase) in prepaid items - -
Decrease (increase) in inventories17,757(5,154)
Increase (decrease) in payables74,706114,441
Total adjustments121,790874,069
Net cash provided by operating activities$446,944$847,836
The accompanying notes are an integral part of these financial statements.
42
Exhibit A-8
Governmental
Activities -
Business-Type Activities - Enterprise Funds
Internal Service
Funds
SewerStorm WaterTotals
20112010
$4,163,417$441,860$11,954,242$11,635,383$ -
- -29,448
(3,769,660)(298,955)(8,823,613)(8,298,387)(77,144)
(701,710)(235,700)(2,236,597)(2,102,952)(19,079)
(307,953)(92,795)894,0321,234,044(66,775)
- -(350,000)(350,000)(30,000)
- - -435 -
00(350,000)(349,565)(30,000)
(236,686)(16,460)(957,951)(498,473)(144,266)
-292292 -9,943
- - - -12,729
- -(535,000)(515,000) -
- - -2,810,000 -
(15,866)(11,912)(280,062)(212,390) -
- - -112 -
(252,552)(28,080)(1,772,721)1,584,249(121,594)
25,39820,353106,27457,09849,894
(535,107)(100,522)(1,122,415)2,525,826(168,475)
2,045,3691,373,8528,430,0145,904,1883,429,648
$1,510,262$1,273,330$7,307,599 $8,430,014 $3,261,173
($488,891)($317,116)($507,086)($57,797)($234,057)
311,746237,7871,306,3391,293,374131,900
(82,237)(14,931)(59,865)(85,513)46
5,264 -5,2642,023 -
- -12,60318,626 -
(53,835)1,465136,77763,33135,336
180,938224,3211,401,118 1,291,841 167,282
($307,953)($92,795)$894,032$1,234,044($66,775)
The accompanying notes are an integral part of these financial statements.
43
Exhibit A-9
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF FIDUCIARY NET ASSETS
December 31, 2011
With comparative amounts for December 31, 2010
20112010
Assets:
Cash and investments$21,934$9,312
Receivables:
Accounts2,5722,551
Taxes:
Unremitted4682
Delinquent208228
Total assets$24,760$12,173
Liabilities:
Due to other governments$24,760$12,173
The accompanying notes are an integral part of these financial statements.
44
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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 assets and the statement of
changes in net assets) 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.
45
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the Proprietary Fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the government considers all revenues, except reimbursement
grants, to be available if they are collected within 60 days of the end of the current fiscal period.
Reimbursement grants are considered available if they are collected within one year of the end of
the current fiscal period. Expenditures generally are recorded when a liability is incurred, as
under accrual accounting. However, debt service expenditures, as well as expenditures related
to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and
interest associated with the current fiscal period are all considered to be susceptible to accrual
and so have been recognized as revenues of the current fiscal period. Only the portion of special
assessments receivable due within the current fiscal period is considered to be susceptible to
accrual as revenue of the current period. All other revenue items are considered to be
measurable and available only when cash is received by the government.
The government reports the following major governmental funds:
The general fund is the government’s primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
Thegrant management special revenue fund administers grants received from a variety of
intergovernmental agencies, which the amounts are restricted. In most cases, grant funds
are provided on a reimbursement basis following proper documentation of expenditures,
however, in some cases the money is provided in advance to spend on specific activities
outlined in the grant.
Thedebt service fund services debt on the general obligation improvement bonds that were
issued to finance construction of public improvements. Special assessment improvements
are paid for completely or in part by property owners deemed to have benefited from such
improvements.
46
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Thespecial assessment construction capital projects fund is used to account for the
construction of public improvements, such as residential streets, sidewalks, and storm
sewers or for the provision of services that are to be paid primarily by the benefited property
owner.
Thecapital improvements fund is used to account for the monies received from property
taxes that are used to finance major improvements and the acquisition of assets that require
a large capital outlay.
The government reports the following major proprietary funds:
Theliquor fund accounts for operations of the municipal liquor stores.
Thewater fund accounts for the water service charges which are used to finance the water
system operating expenses.
Thesewer fund accounts for the sewer service charges which are used to finance the
sanitary sewer system operating expenses.
Thestorm water fund accounts for storm sewer charges which are used to finance the storm
sewer operating expenses.
Additionally, the government reports the following fund types:
Internal Service Funds are used to account for employee fringe benefits, insurance
deductibles and maintenance and upgrading of information systems that are provided on a
cost reimbursement or fee basis to departments or agencies within the City. These funds
are essential for segregating costs for determining the total cost of providing a service and
for assuring that the goods and services provided are properly utilized.
Agency Funds are used to account for monies on behalf of the Six Cities Watershed District
and the North Metro Convention and Tourism Bureau.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the government-wide and proprietary-fund financial statements to
the extent that those standards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board. Governments also have the option of following subsequent
private-sector guidance for their business-type activities and enterprise funds, subject to this
same limitation. The government has elected not to follow subsequent private-sector guidance.
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.
47
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as
general revenues rather than as program revenues. Likewise, general revenues include all
taxes.
Proprietary funds distinguish operatingrevenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund’s principal ongoing operations. The
principal operating revenues of the liquor, water, sewer and storm water enterprise funds are
charges to customers for sales and services.Operating expenses for enterprise funds include
the cost of sales and services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
When both restricted and unrestricted resources are available for an allowable use, it is the
government’s policy to use restricted resources first, then unrestricted resources as they are
needed.
D. Budgets
The City Charter grants the City Council full authority over the financial affairs of the City. The
City Manager is charged with the responsibility of preparing the estimates of the annual budget
and the enforcement of the provisions of the budget as specified in the City Charter. Upon
adoption of the annual budget resolution by the Council, it becomes the formal appropriation
budget for City operations. All budget adjustments must be approved by the Council. Budgets
for the General, Special Revenue and Capital Improvement Capital Projects Funds are adopted
on a basis consistent with accounting principles generally accepted in the United States of
America. Budgeted expenditure appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for
the expenditure of monies are recorded in order to reserve that portion of the appropriation, is
not employed by the City because it is, at present, not considered necessary to assure effective
budgetary control or to facilitate effective cash management.
E. Legal Compliance Budgets
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Manager submits to the City Council a proposed operating budget for the fiscal
year commencing the following January 1. The operating budget includes expenditures
and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution.
48
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
4. The City Council may authorize transfer of budgeted amounts between departments within
any fund.
5. Reported budget amounts are as originally adopted or as amended by Council approved
transfers. The City Charter limits appropriations to the total estimated revenues and fund
balances. If actual revenues exceed the original estimates, appropriations may be
increased by the Council up to the amount of revenue increases.
6. All budget amounts lapse at the end of the year to the extent they have not been expended
or encumbered. Encumbrances are reappropriated into the following year’s budget.
7. Annual budgets are legally adopted for the General Fund and Special Revenue Funds.
Formal budgeting integration is employed as a management control device during the year
for each of these funds. Formal budgetary integration is not employed for Debt Service
Funds because effective budgetary control is achieved through the bond indenture
provisions. Budgetary control for other Capital Projects Funds is accomplished through the
use of project controls.
8. As required by the City Charter, budgetary control is maintained within department at the
level of three major categories of expenditures: salaries and wages; ordinary expenses;
and capital outlay. This is the level of control at which expenditures may not legally exceed
appropriations.
9. The General Fund budget includes prior year encumbrances which were reappropriated to
the current year. Expenditures for the items encumbered are included in the current year’s
expenditures.
F. Cash and Investments
Cash balances from all funds are combined and invested to the extent available in certificates of
deposit, U.S. government securities and other securities authorized by State Statute. Investment
income is allocated to the respective funds on the basis of applicable cash balance participation
by each fund. Investments are stated at fair value, based upon quoted market prices as of the
balance sheet date. Investment income is accrued at the balance sheet date.
The City provides temporary advances to funds that have insufficient cash balances by means of
an advance from another fund shown as interfund receivables in the advancing fund, and an
interfund payable in the fund with the deficit, until adequate resources are received. These
interfund balances are eliminated on the government-wide financial statements.
For purposes of the statement of cash flows the City considers all highly liquid investments with a
maturity of three months or less when purchased to be cash equivalents. All of the cash and
investments allocated to the proprietary funds have original maturities of 90 days or less.
Therefore the entire balance in the Proprietary Funds is considered cash equivalents.
Restricted cash balances relate to unspent bond proceeds.
Investments are stated at fair value, based upon quoted market prices, except for investments in
2a7-like external investment pools, which are stated at amortized cost. Investment income is
accrued at the balance sheet date.
49
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
G. Receivables and Payables
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. Short-term interfund loans are classified as “interfund
receivables/payables.” All short-term interfund receivables and payables at December 31, 2011
are planned to be eliminated in 2012. 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.
H. Property Tax Revenue Recognition
The City Council annually adopts a tax levy and certifies it to the County in December
(levy/assessment date) of each year for collection in the following year. The County is
responsible for billing and collecting all property taxes for itself, the City, the local School District
and other taxing authorities. Such taxes become a lien on January 1 and are recorded as
receivables by the City at that date. Real property taxes are payable (by property owners) on
May 15 and October 15 of each calendar year. Personal property taxes are payable by
taxpayers on February 28 and June 30 of each year. These taxes are collected by the County
and remitted to the City on or before July 7 and December 2 of the same year. Delinquent
collections for November and December are received the following January. The City has no
ability to enforce payment of property taxes by property owners. The County possesses this
authority.
Government-Wide Financial Statements
The City recognizes property tax revenue in the period for which the taxes were levied.
Uncollectible property taxes are not material and have not been reported.
Governmental Fund Financial Statements
The City recognizes property tax revenue when it becomes both measurable and available to
finance expenditures of the current period. In practice, current and delinquent taxes and State
credits received by the City in July, December and January are recognized as revenue for the
current year. Taxes collected by the County by December 31 (remitted to the City the following
January) and taxes and credits not received at year end are classified as delinquent and due
from County taxes receivable. The portion of delinquent taxes not collected by the City in
January is fully offset by deferred revenue because they are not available to finance current
expenditures.
I. Market Value Homestead Credit
Property taxes on residential agricultural homestead property (as defined by State Statutes) are
partially reduced by market value homestead credit (MVHC). This credit is paid to the City by the
State in lieu of taxes levied against homestead property. The State remits this credit through
installments each year. The State unalloted the 2011 MVHC in the amount of approximately
$496,000 which is a permanent revenue loss to the City.
50
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
J. Special Assessment Revenue Recognition
Special assessments are levied against the benefited properties for the assessable costs of
special assessment improvement projects in accordance with State Statutes. The City usually
adopts the assessment rolls when the individual projects are complete or substantially complete.
The assessments are collectible over a term of years generally consistent with the term of years
of the related bond issue. Collection of annual installments is handled by the County in the same
manner as property taxes. Property owners are allowed to prepay future installments without
interest or prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon
that property until full payment is made or the amount is determined to be excessive by the City
Council or court action. If special assessments are allowed to go delinquent, the property is
subject to tax forfeit sale. Proceeds of sales from tax forfeit properties are remitted to the City in
payment of delinquent special assessments. Pursuant to State Statutes, a property shall be
subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal
recreational land in which event the property is subject to such sale after five years.
Government-Wide Financial Statements
The City recognizes special assessment revenue in the period that the assessment roll was
adopted by the City Council. Uncollectible special assessments are not material and have not
been reported.
Governmental Fund Financial Statements
Revenue from special assessments is recognized by the City when it becomes measurable and
available to finance expenditures of the current fiscal period. In practice, current and delinquent
special assessments received by the City are recognized as revenue for the current year.
Special assessments that are collected by the County by December 31 (remitted to the City the
following January) are also recognized as revenue for the current year. All remaining delinquent,
deferred and special deferred assessments receivable in governmental funds are completely
offset by deferred revenues.
K. Inventories
Governmental Funds
Inventories of the general fund are stated at cost, which approximates market, using the first-in,
first out (FIFO) method. The primary government does not maintain material amounts of
inventory within the other governmental funds. Inventories of governmental funds are recorded
as expenditures when consumed rather than when purchased.
Proprietary Funds
Liquor fund inventories are valued on the average cost basis. Other proprietary funds inventory
items are expensed at the time they are sold or used (consumption method).
51
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
L. 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.
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 government as assets with an initial, individual
cost of more than $5,000 (with the exception of computer equipment) (amount not rounded) and
an estimated useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets are recorded at
estimated fair market value at the date of donation.
In the case of the initial capitalization of general infrastructure assets (i.e., those reported by
governmental activities) the government chose to include all such items regardless of their
acquisition date or amount. The City was able to estimate the historical cost for the initial
reporting of these assets through back-trending (i.e., estimating the current replacement cost of
the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost
of the infrastructure to be capitalized and using an appropriate price-level index to deflate the
cost to the acquisition year or estimated acquisition year).
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase of capital assets of business-type activities is
included as part of the capitalized value of the assets constructed. For the year ended December
31, 2011, no interest was capitalized in connection with construction in progress.
The City implemented GASB Statement No. 51, Accounting and Financial Reporting for
Intangible Assets effective January 1, 2010 which required the City to capitalize and amortize
intangible assets. Pursuant to GASB Statement No. 51, the retroactive reporting of permanent
easements is not required and therefore, the City has elected not to report permanent easements
acquired in years prior to 2010. The City did not acquire any intangible assets since the
implementation of GASB Statement No.51.
Property, plant and equipment of the primary government, and the component units, are
depreciated using the straight line method over the following estimated useful lives:
Assets
Improvements other than building 20 – 25 years
Buildings and structures 20 – 25 years
Machinery and equipment 5 – 10 years
Infrastructure 25 years
52
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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, as well as issuance costs, are generally immaterial
and are expensed in the year of bond issuance.Material premiums and discounts are deferred
and amortized over the life of the bonds.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, 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. These constraints are established by the City
Council and/or management.
Unassigned – is the residual classification for the general fund and also reflects negative
residual amounts in other funds.
53
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
When both restricted and unrestricted resources are available for use, it is the City’s policy to first
use restricted resources, and then use unrestricted resources as they are needed.
When committed, assigned or unassigned resources are available for use, it is the City’s policy to
use resources in the following order; 1) committed 2) assigned and 3) unassigned.
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. 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 assets
The governmental fund balance sheet includes reconciliation between fund balance – total
governmental funds and net assets – governmental activities as reported in the government-
wide statement of net assets. One element of that reconciliation explains that “long-term
liabilities, including bonds payable, are not due and payable in the current period and
therefore are not reported in the funds”. The details of this ($7,927,874) difference are as
follows:
Bonds payable($7,320,000)
Accrued interest payable(107,723)
Other post employment benefits payable(500,151)
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental activities($7,927,874)
54
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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 assets 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 ($1,514,711) difference are as follows:
Capital outlay$964,410
Less maintenance projects not capitalized(559,274)
Depreciation expense(1,919,847)
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental activities($1,514,711)
Another element of that reconciliation states that “revenues on the statement of activities that
do not provide current financial resources are not reported as revenues in the funds”. The
details of this $166,234 difference are as follows:
General property taxes deferred revenue:
At December 31, 2010($292,029)
At December 31, 2011305,304
Special assessments deferred revenue:
At December 31, 2010(1,884,747)
At December 31, 20112,037,706
Net adjustments to increase net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental activities$166,234
55
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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 assets. The details of this
$800,000 difference are as follows:
Bonds issued$ -
Principal repayments:
G.O. Improvement bonds800,000
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental activities$800,000
T. Restricted Assets
Cash balances in the Water and Sewer Enterprise Funds is restricted at December 31, 2011 and
2010, for unspent bond proceeds.
U. Reclassifications
Certain amounts presented in the prior year data have been reclassified in order to be consistent
with the current year’s presentation.
V. Comparative Totals
The basic financial statements, required supplementary information, combining and individual
fund financial statements and schedules, and supplementary financial information include certain
prior-year summarized comparative information in total but not at the level of detail required for a
presentation in conformity with generally accepted accounting principles. Accordingly, such
information should be read in conjunction with the City’s financial statements for the year ended
December 31, 2010, from which the summarized information was derived.
2. Deposits and Investments
A.Deposits
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks
authorized by the City Council, all of which are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or
collateral. The market value of collateral pledged must equal 110% of the deposits not covered
by insurance or bonds.
56
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the
City Treasurer or in a financial institution other than that furnishing the collateral. Authorized
collateral includes the following:
a) United States government treasury bills, treasury notes, treasury bonds;
b) Issues of United States government agencies and instrumentalities as quoted by a
recognized industry quotation service available to the government entity;
c) General obligation securities of any state or local government with taxing powers which is
rated “A” or better by a national bond rating service, or revenue obligation securities of any
state or local government with taxing powers which is rated “AA” or better by a national bond
rating service;
d) Unrated general obligation securities of a local government with taxing powers may be
pledged as collateral against funds deposited by that same local government entity:
e) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality
accompanied by written evidence that the bank’s public debt is rated “AA” or better by
Moody’s Investors Service, Inc. or Standard & Poor’s Corporation; and
f) Time deposits that are fully insured by any Federal agency.
Custodial Credit Risk – Deposits: Custodial credit risk is the risk that in the event of a bank
failure, the City’s deposits may not be returned to it. State Statutes require that insurance, surety
bonds or collateral protect all City deposits. The market value of collateral pledged must equal
110% of deposits not covered by insurance or bonds. As of December 31, 2011, the bank
balance of the City’s deposits was covered by federal depository insurance or covered by
perfected collateral pledged and held in the City’s name.
B. Investments
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its
instrumentalities or organizations created by an act of congress, excluding mortgage-backed
securities defined as high risk.
b) Shares of investment companies registered under the Federal Investment Company Act of
1940 and whose only investments are in securities described in (a) above, general obligation
tax-exempt securities, or repurchase or reverse repurchase agreements.
c) Obligations of the State of Minnesota or any of its municipalities as follows:
1) any security which is a general obligation of any state or local government with taxing
powers which is rated “A” or better by a national bond rating service;
2) any security which is a revenue obligation of any state or local government with taxing
powers which is rated “AA” or better by a national bond rating service; and
3) a general obligation of the Minnesota housing finance agency which is a moral obligation
of the State of Minnesota and is rated “A” or better by a national bond rating agency.
57
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve
System.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the
highest quality, and maturing in 270 days or less.
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal
Reserve System with capitalization exceeding $10,000,000; a primary reporting dealer in
U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota
securities broker-dealers; or, a bank qualified as a depositor.
g) General obligation temporary bonds of the same governmental entity issued under section
429.091, subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6.
As of December 31, 2011 the City had the following investments and maturities:
Investment Maturities (in Years)
FairLessOver
Investment TypeRatingValueThan 11-56-1010 Years
Federal Home Loan BankAAA$1,501,265$ - $500,245$1,001,020$ -
Federal National Mortgage AssociationAAA1,001,860 - 1,001,860 -
Federal Home Loan Mortgage CorporationAAA4,256,808 - 2,252,6482,004,160 -
Local government bondsAA10,836,561912,0849,711,399213,078 -
Local government bondsA5,115,3365,115,336
Brokered CDsN/R4,747,1654,004,165743,000 - -
Money marketN/R2,021,6132,021,613 - - -
Total$29,480,608$6,937,862$18,322,628$4,220,118$0
Total investments$29,480,608
Deposits3,567,477
Petty cash4,550
Total cash and investments$33,052,635
Following is a reconciliation to the City’s cash and investment balances as of December 31, 2011:
Cash and investments - primary government:
Governmental and business-type (statement A-1)$30,821,058
Restricted cash business-type (statement A-1)2,209,643
Fiduciary (statement A-9)21,934
$33,052,635
As of December 31, 2011 the HRA had the following investments and maturities:
Investment Maturities (in Years)
FairLessOver
Investment TypeRatingValueThan 11-56-1010 Years
Brokered CDsN/R$2,623,310$ - $2,623,310$ - $ -
United States Treasury BondAAA180,141 - 180,141 - -
Federal Home Loan BankAAA750,293 - 750,293 - -
Local government bondsA3,846,4151,328,5672,517,848 - -
Money marketN/R28,51328,513 - - -
Total$7,428,672$1,357,080$6,071,592$0$0
Total investments$7,428,672
Deposits1,589,946
Total cash and investments$9,018,618
58
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
C. INVESTMENT RISKS
Custodial credit risk – investments – For investments in securities, custodial credit risk is the risk
that in the event of failure of the counterparty to a transaction, the City will not be able to recover
the value of its investment securities that are in the possession of an outside party. Investments
in investment pools and money markets are not evidenced by securities that exist in physical or
book entry form, and therefore are not subject to custodial credit risk disclosures. The City policy
is to limit its exposure by holding investments in securities with a major bank’s corporate trust
department. Investments are delivered to the City’s trust account and then payment is released
to the broker-dealer.
Interest rate risk – Interest rate risk is the risk that changes in interest rates of debt investments
could adversely affect the fair value of an investment. The City’s investment policy requires the
City to diversify its investment portfolio to eliminate the risk of loss resulting from over
concentration of assets in a specific maturity. The policy also states the City’s investment
portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which
might be reasonably anticipated.
Credit Risk– Credit risk is the risk that an issuer or other counterparty to an investment will be
unable to fulfill its obligation to the holder of the investment. State law limits investments to
commercial paper to those rated in the highest quality category by at least two nationally
recognized rating agencies; in any security of the State of Minnesota or any of its municipalities
which is rated “A” or better by a national bond rating service for general obligation and rated “AA”
or better for a revenue obligation; a general obligation of the Minnesota Housing Finance Agency
to those rated “A” or better by a national bond rating agency; mutual funds or money market
funds whose investments are restricted to securities described in MS 118A.04. The City’s
investment policy does not place further restrictions on investment options.
Concentration of credit risk – Concentration of credit risk is the risk of loss that may be attributed
to the magnitude of a government’s investment in a single issuer. The City places no limit on the
amount the City may invest in any one issuer.Investments in a single issuer exceeding 5% of
the City’s overall investment portfolio are in various holdings as follows:
Federal Home Loan Bank5.09%
Federal Home Loan Mortgage Corporation14.44%
Local government bonds:
Perth Amboy New Jersey5.53%
El Paso Texas7.25%
Concentration of credit risk – Concentration of credit risk is the risk of loss that may be attributed
to the magnitude of a government’s investment in a single issuer. The HRA places no limit on the
amount the HRA may invest in any one issuer. Investments in a single issuer exceeding 5% of
the HRA’s overall investment portfolio are in various holdings as follows:
Federal Home Loan Bank10.10%
Federal National Mortgage Association10.10%
Local government bonds:
Illinois State Pension13.46%
New York Clean Water14.07%
Georgia Municipal Electric6.18%
Cordalville Sewer5.04%
59
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
3. Receivables
Significant receivables balances not expected to be collected within one year of December 31, 2011 are
as follows:
Primary Government
Major Funds
Special Special
AssessmentAssessmentNonmajor
GeneralDebt ServiceCapital ProjectsFundsTotal
Special assessments receivable$47,357$1,391,032$214,478$ - $1,652,867
Delinquent property taxes156,651 - 13,0145,235174,900
$204,008$1,391,032$227,492$5,235$1,827,767
HRA Component Unit
Major Funds
RevolvingGeneral
LoanFundTotal
Mortgage receivable$1,119,159$ - $1,119,159
Allowance for uncollectible accounts(57,959) - ($57,959)
Delinquent tax increment - 11,386$11,386
$1,061,200$11,386$1,072,586
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Governmental funds also defer
revenue recognition in connection with resources that have been received, but not yet earned. At the end
of the current fiscal year, the various components of deferred revenue and unearned revenue reported in
the governmental funds were as follows:
UnavailableUnearnedTotal
Delinquent property taxes receivable (General Fund)$273,898$ - $273,898
Delinquent property taxes receivable (Capital Improvements Fund)758 - 758
Delinquent property taxes receivable (Special Assessment Debt Service Fund)22,769 - 22,769
Delinquent property taxes receivable (Nonmajor Funds)7,880 - 7,880
Special assessments not yet due (General Fund)58,383 - 58,383
Special assessments not yet due (Special Assessment Construction Fund)25,125 - 25,125
Special assessments not yet due (Special Assessment Debt Service Fund)1,954,197 - 1,954,197
Unearned grant funds (Grant Management Fund) - 180,075180,075
Total deferred/unearned revenue for governmental funds$2,343,010$180,075$2,523,085
60
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
4. Capital Assets
Capital asset activity for the year ended December 31, 2011 was as follows:
BeginningEnding
Primary GovernmentBalanceIncreasesDecreasesBalance
Governmental activities:
Capital assets, not being depreciated:
Land$2,841,516$ - $ - $2,841,516
Construction in progress6,000 - - 6,000
Total capital assets, not being depreciated2,847,516002,847,516
Capital assets, being depreciated:
Buildings and structures7,963,36117,779 - 7,981,140
Machinery and equipment8,638,604454,718(225,199)8,868,123
Improvements5,766,19077,670(6,025)5,837,835
Infrastructure33,150,978 - - 33,150,978
Total capital assets, being depreciated55,519,133550,167(231,224)55,838,076
Less accumulated depreciation for:
Buildings and structures5,931,208293,995 - 6,225,203
Machinery and equipment6,737,741526,203(224,275)7,039,669
Improvements3,732,939325,691(6,025)4,052,605
Infrastructure18,587,618905,858 - 19,493,476
Total accumulated depreciation34,989,5062,051,747(230,300)36,810,953
Total capital assets being depreciated - net20,529,627(1,501,580)(924)19,027,123
Governmental activities capital assets - net$23,377,143($1,501,580)($924)$21,874,639
BeginningEnding
Primary GovernmentBalanceIncreasesDecreasesBalance
Business-type activities:
Capital assets, not being depreciated:
Land$306,477$ - $ - $306,477
Total capital assets, not being depreciated306,47700306,477
Capital assets, being depreciated:
Buildings and structures3,262,996 - - 3,262,996
Improvements other than buildings13,964,553275,787 - 14,240,340
Machinery and equipment2,984,77148,704(28,723)3,004,752
Infrastructure22,697,021633,459 - 23,330,480
Total capital assets, being depreciated42,909,341957,950(28,723)43,838,568
Less accumulated depreciation for:
Buildings and structures1,618,04686,634 - 1,704,680
Improvements other than buildings6,618,810556,527 - 7,175,337
Machinery and equipment2,405,272141,294(28,723)2,517,843
Infrastructure12,469,469521,884 - 12,991,353
Total accumulated depreciation23,111,5971,306,339(28,723)24,389,213
Total capital assets being depreciated - net19,797,744(348,389)019,449,355
Business-type activities capital assets - net$20,104,221($348,389)$0$19,755,832
Component unit:
Capital assets, not being depreciated:
Land$2,023,511$0$0$2,023,511
61
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government$165,782
Public safety255,557
Public works, including depreciation of general infrastructure assets1,312,804
Recreation and naturalist185,704
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets131,900
Total depreciation expense - governmental activities$2,051,747
Business-type activities:
Liquor$29,327
Water727,479
Sewer311,746
Storm water237,787
Total increases in accumulated depreciation$1,306,339
62
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
5. Long-Term Debt
The City issues general obligation bonds to provide funds for the acquisition and construction of major
capital facilities. The reporting entity’s long-term debt is segregated between the amounts to be repaid
from governmental activities and amounts to be repaid from business-type activities.
As of December 31, 2011, the governmental long-term bonded debt and loans of the financial reporting
entity consisted of the following:
Governmental Activities:
$1,915,000 General Obligation Improvement Bonds, Series 2008A due in varying annual
installments of $165,000 - $225,000 through February 1, 2019; interest at 2.95% - 4.0%.$1,580,000
$1,910,000 General Obligation Improvement Bonds, Series 2007A due in varying annual
installments of $155,000 - $230,000 through August 1, 2018; interest at 3.5% - 3.85%.1,420,000
$1,215,000 General Obligation Improvement Bonds, Series 2010C due in varying annual
installments of $55,000 - $135,000 through February 1, 2021; interest at 2.0% - 3.0%.1,160,000
$1,805,000 General Obligation Improvement Bonds of 2005 due in varying annual installments of
$155,000 - $210,000 through February 1, 2016; interest at 2.80% - 3.750%.980,000
$2,505,000 General Obligation Improvement Bonds of 2006 due in varying annual installments
of $205,000 - $305,000 through February 1, 2017; interest at 4.00%.1,630,000
$550,000 General Obligation Equipment Certificates, Series 2010B due in varying annual
installments of $50,000 - $70,000 through February 1, 2020; interest at 2.0% - 3.0%550,000
Subtotal governmental activities$7,320,000
Business-Type Activities:
$1,180,000 General Obligation Water Revenue Bonds of 1998, due in varying annual
installments of $90,000 - $130,000 through February 1, 2011.$-
$1,790,000 General Obligation Water Revenue Bonds of 2004 due in varying annual installments
of $50,000 - $230,000 through February 1, 2019; interest at 2.5% - 4.00%.1,590,000
$1,005,000 General Obligation Water and Storm Water Revenue Bonds of 2004 due in varying
annual installments of $160,000 - $235,000 through February 1, 2012; interest at 2.0% - 3.25%.160,000
$3,725,000 General Obligation Water Revenue Bonds of 2008B due in varying
annual installments of $240,000 - $315,000 through February 1, 2023; interest at 2.95% - 4.50%.3,065,000
$2,810,000 General Obligation Utility Revenue Bonds of 2010A due in varying annual
installments of $160,000 - $265,000 through February 1, 2026; interest at 2.50% - 3.50%2,810,000
Unamortized discount(2,465)
Subtotal business-type activities7,622,535
Total primary government$14,942,535
63
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Annual debt service requirements to maturity for general obligation bonds and loans are as follows:
Primary Government
Governmental ActivitiesBusiness-Type Activities
Year EndingG.O. ImprovementG.O. Equipment CertificatesRevenue Bonds
December 31,PrincipalInterestPrincipalInterestPrincipalInterest
2012$890,000$229,503$50,000$13,450$554,744$262,314
2013925,000 198,413 55,000 12,400 654,637 243,376
2014955,000 165,235 60,000 11,250 569,637 223,459
2015990,000 129,815 60,000 10,050 584,637 203,060
20161,030,000 92,090 60,000 8,700 609,637 181,610
2017855,000 56,360 65,000 6,975 624,637 159,191
2018570,000 29,503 65,000 5,025 654,637 135,623
2019355,000 12,450 65,000 3,075 679,969 110,748
2020135,000 3,975 70,000 1,050 465,000 89,585
202165,000 975 - - 490,000 72,080
2022 - - - - 505,000 53,688
2023 - - - - 530,000 34,125
2024 - - - - 225,000 20,281
2025 - - - - 235,000 12,513
2026 - - - - 240,000 4,200
Total$6,770,000$918,318$550,000$71,975$7,622,535$1,805,852
Long-term liability activity for the year ended December 31, 2011, was as follows:
BeginningEndingDue Within
BalanceAdditionsReductionsBalanceOne Year
Governmental activities:
Bonds payable:
G.O. improvement bonds$7,570,000$ - ($800,000)$6,770,000$890,000
G.O. equipment certificates550,000 - - 550,00050,000
Total bonds payable8,120,000 - (800,000)7,320,000940,000
Compensated absences973,963749,980(727,237)996,706737,935
Total government activity 973,963
long-term debt$10,067,926$749,980($1,527,237)$8,316,706$1,677,935
Business-type activities:
Bonds payable:
G.O. revenue bonds$8,157,759$ - ($535,224)$7,622,535$554,744
Compensated absences are generally liquidated by the Employee Benefits Fund. All long-term bonded
indebtedness outstanding at December 31, 2011 is backed by the full faith and credit of the City,
including improvement and revenue bond issues. Delinquent assessments receivable at December 31,
2011 totaled $37,807.
64
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Revenues Pledged
Revenue PledgedCurrent Year
Percent ofDebt servicePrincipalPledged
Use oftotalas a % ofTerm ofRemainingand InterestRevenue
Bond IssueProceedsTypedebt servicenet revenuesPledgePrincipalpaidreceived
2010BCapital EquipmentProperty Taxes100%2011-$550,000$13,834$69,396
2020
2010CStreet ImprovementsProperty Taxes and100%2011-1,160,00086,084212,190
Special Assessments2021
2008AStreet ImprovementsProperty Taxes and100%2008-1,580,000233,750205,100
Special Assessments2019
2007AStreet ImprovementsProperty Taxes and100%2007-1,420,000225,808204,407
Special Assessments2018
2006AStreet ImprovementsProperty Taxes and100%2007-1,630,000299,800244,239
Special Assessments2017
2005AStreet ImprovementsProperty Taxes and100%2006-980,000212,694216,860
Special Assessments2016
Water, Sewer and
2010A Utility Revenue BondsInfrastructure improvementsStorm Customer100% - 2011-2,810,00085,7307,120,671
Net Revenue2026
2008B Water Revenue BondsInfrastructure improvementsWater Customer100%13.66%2008-3,065,000330,3792,418,226
Net Revenue2023
2004 Water Revenue BondsInfrastructure improvementsWater Customer100%4.48%2004-1,590,000108,3852,418,226
Net Revenue2019
2004 Water & Storm RevenueInfrastructure improvementsWater and Storm 100%5.48%2004-160,000157,4502,875,017
BondsCustomer Net Revenue2012
1998A Water Revenue BondsInfrastructure improvementsWater Customer100%5.50%1998- - 133,1202,418,226
Net Revenue2011
6. Defined Benefit Pension Plans-Statewide
A. Plan Description
All full-time and certain part-time employees of the City of Fridley are covered by defined benefit
plans administered by the Public Employees Retirement Association of Minnesota (PERA).
PERA administers the General Employees Retirement Fund (GERF) and the Public Employees
Police and Fire Fund (PEPFF) which are cost-sharing, multiple-employer retirement plans.
These plans are established and administered in accordance with Minnesota Statute, Chapters
353 and 356.
65
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan
members are covered by Social Security and Basic Plan members are not. All new members
must participate in the Coordinated Plan. All police officers, firefighters and peace officers who
qualify for membership by statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to
survivors upon death of eligible members. Benefits are established by State Statute, and vest
after three years of credited service. The defined retirement benefits are based on a member’s
highest average salary for any five successive years of allowable service, age, and years of
credit at termination of service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for GERF and PEPFF. That report may be obtained on the web at
mnpera.org, by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by
calling (651)296-7460 or 1-800-652-9026.
B. Funding Policy
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These
statutes are established and amended by the state legislature. The City makes annual
contributions to the pension plans equal to the amount required by state statutes. GERF Basic
Plan members and Coordinated Plan members were required to contribute 9.10% and 6.25%,
respectively, of their annual covered salary in 2011. PEPFF members were required to
contribute 9.6% of their annual covered salary in 2011. The City was required to contribute the
following percentages of annual covered payroll in 2011: 11.78% for Basic Plan GERF
members, 7.25% for Coordinated Plan GERF members, and 14.4% for PEPFF members. The
City’s contributions to the General Employees Retirement Fund for the years ending December
31, 2011, 2010 and 2009 were $400,177, $387,554 and $370,215, respectively. The City’s
contributions to the Public Employees Police and Fire Fund for the years ending December 31,
2011, 2010 and 2009 were $477,618, $487,524 and $499,795, respectively. The City’s
contributions were equal to the contractually required contributions for each year as set by state
statute.
C. Public Employees Retirement Association (PERA) - Defined Contribution
Plan Description
All council members of the City of Fridley are covered by a defined contribution pension plan
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the Public Employees Defined Contribution Plan (PEDCP) which is a multiple-
employer deferred compensation plan.
Benefit Provisions and Contribution Rates
The PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all
contributions by or on behalf of employees are tax deferred until time of withdrawal.
66
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Plan benefits depend solely on amounts contributed to the plan plus investment income, less
administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions,
including the employee and employer contribution rates for those qualified personnel who elect to
participate. An eligible elected official who decides to participate contributes 5 percent of salary
which is matched by the elected official's employer. For ambulance service personnel, employer
contributions are determined by the employer, and for salaried employees must be a fixed
percentage of salary. Employer contributions for volunteer personnel may be a unit value for
each call or period of alert duty. Employees who are paid for their services may elect to make
member contributions in an amount not to exceed the employer share. Employer and employee
contributions are combined and used to purchase shares in one or more of the seven accounts of
the Minnesota Supplemental Investment Fund.For administering the plan, PERA receives 2
percent of employer contributions and twenty-five hundredths of one percent of the assets in
each member's account.
Total contributions made by the City during fiscal year 2011 were:
Percentage of
AmountCovered PayrollRequired
EmployeesEmployerEmployeesEmployerRates
PEDCP$2,106$2,1065.00%5.00%5.00%
7. Defined Contribution Pension Plan - Fridley Volunteer Firefighters Relief Association
Plan Description
The Fridley Volunteer Firefighters Relief Association (Association), is a single employer public
employee retirement system that acts as a common investment administrator for all of the City’s
firefighters. Pursuant to a 1987 amendment to its by-laws, the pension plan is a defined contribution
plan, prior to 1987 the pension plan was a defined benefit pension plan.
Benefits and contribution requirements are established by Association’s by-laws and can be
amended by the Association’s Board of Trustees with approval from the City of Fridley, Minnesota.
All provisions are within limitations established by Minnesota Statutes.
Type of Benefit
The exclusive pension provided by the Association is a “Defined Contribution Lump Sum Service
Pension,” as defined in Minnesota Statutes §424A.02, Subdivision 4.
Contribution Made
The City collected and remitted $99,320 and $106,278 in State Aid to the Association for 2011 and
2010, respectively. This transaction is recorded as revenue and expenditures in the City’s financial
statements.
During 2011 and as of December 31, 2011, the Association held no securities issued by the City
or other related parties.
67
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
8. Other Post-Employment Benefits
A. Plan Description
In addition to providing the pension benefits described in Note 6, the City provides post-
employment health care benefits (as defined in paragraph B) for retired employees and police
and firefighters disabled in the line of duty, through a single-employer defined benefit plan. The
termPlan refers to the City’s requirement by State Statute to provide retirees with access to
health insurance. The OPEB plan is administered by the City. The authority to provide these
benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a, and 299A.465. The
benefits, benefit levels, employee contributions and employer contributions are governed by the
City and can be amended by the City through its personnel manual and collective bargaining
agreements with employee groups. The Plan is not accounted for as a trust fund, an irrevocable
trust has not been established to account for the Plan. The Plan does not issue a separate
report.
B. Benefits Provided
Retirees
The City is required by State Statute to allow retirees to continue participation in the City’s group
health insurance plan if the individual terminates service with the City through service retirement
or disability retirement. Covered spouses may continue coverage after the retiree’s death. The
surviving spouse of an active employee may continue coverage in the group health insurance
plan after the employee’s death.
All health care coverage is provided through the City’s group health insurance plans. The retiree
is required to pay 100% of their premium cost for the City-sponsored group health insurance plan
in which they participate. The premium is a blended rate determined on the entire active and
retiree population. Since the projected claims costs for retirees exceed the blended premium
paid by retirees, the retirees are receiving an implicit rate subsidy (benefit). The coverage levels
are the same as those afforded to active employees. Upon a retiree reaching age 65 years of
age, Medicare becomes the primary insurer.
The monthly retiree premiums effective January 1, 2011 were:
SingleMarried
Regular and Dental$607$1,754
HRA and Dental5131,483
HSA and Dental4961,433
68
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
C. Participants
As of the actuarial valuation dated January 1, 2011, participants consisted of:
Retired participants and beneficiaries
currently receiving benefits11
Active employees69
Waiving Coverage62
Total142
Participating employers1
D. Funding Policy
The additional cost of using a blended rate for actives and retirees is currently funded on a pay-
as-you-go basis. The City Council may change the funding policy at any time.
E. Annual OPEB Costs and Net OPEB Obligation
The City’s annual other post employment benefit (OPEB) cost is calculated based on the annual
required contribution (ARC) of the employer, an amount actuarially determined in accordance
with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if
paid on an ongoing basis, is projected to cover normal cost each year and amortize any
unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The net
OPEB obligation as of December 31, 2011, was calculated as follows:
Annual required contribution (ARC)$69,120
Interest on net OPEB obligation21,235
Adjustment to ARC(30,701)
Annual OPEB cost59,654
Contributions made during the year(28,464)
Increase in net OPEB obligation31,190
Net OPEB obligation - beginning of year530,884
Net OPEB obligation - end of year$562,074
For the governmental activities, other post employment benefits are generally liquidated through
the General Fund.
69
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan and
the net OPEB obligation for 2009 to 2011 was as follows:
Percentage of
Fiscal YearAnnual OPEBEmployer Annual OPEB CostNet OPEB
EndedCostContributionsContributedObligation
December 31, 2009$189,742$48,98725.8%$353,923
December 31, 2010234,08057,11924.4%530,884
December 31, 201159,65428,46447.7%562,074
F. Funded Status and Funding Progress
The City currently has no assets that have been irrevocably deposited in a trust for future health
benefits; therefore, the actuarial value of assets is zero. The funded status of the Plan was as
follows:
Unfunded
ActuarialActuarialUAAL as a
ActuarialActuarialAccruedAccruedFundedCoveredPercentage of
ValuationValue of AssetsLiability (AAL)*Liability (UAAL)RatioPayrollCovered Payrol
Date(a)(b)(b-a)(a/b)(c) ( (b-a) / c)
anuary 1, 2011$ - $616,348$616,3480.0%$8,186,0317.5%
J
*Using the projected unit credit actuarial cost method.
G. Actuarial Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality and the health care cost trend. Amounts
determined regarding the funded status of the plan and the annual required contributions (ARC)
of the employer are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The schedule of funding progress,
presented as required supplementary information following the notes to financial statements,
presents multi-year trend information that shows whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
70
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan members to that point. The actuarial methods and assumptions
used include techniques that are designed to reduce the effect of short-term volatility in actuarial
accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of
the calculations.
In the January 1, 2011 actuarial valuation, the Projected Unit Credit Actuarial cost method was
used. The actuarial assumptions included a 4.0% investment rate of return (net of administrative
expenses) and an initial annual health care cost trend rate of 10% reduced by 0.5% each year to
arrive at an ultimate health care cost trend rate of 5.0%, which includes a 3% inflation
assumption. The actuarial value of assets was $0. The plan’s unfunded actuarial accrued
liability is being amortized using the level percentage of projected payroll method over 30 years
on a closed basis. The remaining amortization period at December 31, 2011, was 27 years.
9. Interfund Receivables, Payables and Transfers
Interfund payables and receivables are representative of lending/borrowing arrangements to
cover deficit cash balances at the end of the fiscal year. Interfund receivables and payables of
the City are as follows:
InterfundInterfund
ReceivablesPayables
Due From/Due To:
Major Funds:
General Fund$121,854$ -
Nonmajor Governmental Funds:
Special Revenue Funds:
Police Activity Fund - 95,242
Solid Waste Abatement Fund - 26,612
$121,854$121,854
71
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Interfund receivables and payables of the HRA component unit at December 31, 2011 are as
follows:
InterfundInterfund
ReceivablesPayables
Due From/Due To:
General Fund$5,379,825$ -
Capital Projects Funds:
Lake Pointe - 585,303
Gateway East - 749,653
Gateway West - 1,720,109
57th Avenue Redevelopment - 123,760
McGlynn Bakeries - 24,000
Satellite Lane Apts. - 62,000
Tax Increment District #19 - 665,000
Gateway Northeast - 1,450,000
$5,379,825$5,379,825
The above balances are not expected to be eliminated within one year of December 31, 2011.
Interfund Transfers:
Transfer InTransfer Out
Governmental Funds:
Major Funds:
General Fund (1) (3) (5)$623,467$ -
Special Assessment Debt Service (1) - 266,705
Capital Improvements (2) (4)30,000610,000
Special Assessment Construction Capital Projects (2)610,000 -
FCC Donation (3) - 23,467
Nonmajor Funds (1)16,705 -
Total governmental funds1,280,172900,172
Internal Service Funds:
Self Insurance (4) - 30,000
Proprietary Funds:
Liquor (5) - 350,000
Total$1,280,172$1,280,172
(1) Transfer of $250,000 to finance General Fund and $16,705 to finance nonmajor funds
(2) Transfer City portion of various street repairs
(3) Fund closure
(4) Transfer of expenditures related to storm damage
(5) Annual transfer to finance General Fund
72
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Interfund transfers allow the City to allocate financial resources to the funds that receive benefit
from services provided by another fund. Most of the City’s interfund transfers fall under that
category.
10. Fund Balance
The City adopted the provisions of Governmental Accounting Standards Board Statement No. 54,
Fund Balance Reporting and Governmental Fund Type Definitions for the year ended December
31, 2011. This standard changed fund balance classifications for governmental fund statements.
Definitions for the new classifications are included in Note 1P.
A. CLASSIFICATIONS
At December 31, 2011, a summary of the governmental fund balance classifications are as
follows:
Special
Assessment
DebtConstructionCapital OtherTotalComponent
General FundServiceCapital ProjectsImprovementsGovernmentalCityUnit
Nonspendable:
Inventory$65,271$ - $ - $ - $ - $65,271$ -
Mortgage loan receivable - - - - - - 1,065,599
Total nonspendable65,271000065,2711,065,599
Restricted for:
Debt service - 2,222,257 - - - 2,222,257 -
Tax increment - - - - - - 1,611,468
Cable television equipment - - - - 236,125236,125 -
Police forfeitures - - - - 71,49171,491 -
Total restricted02,222,25700307,6162,529,8731,611,468
Committed to:
Cable televitsion programming - - - - 1,129,6301,129,630 -
Recycling programs - - - - 35,50435,504 -
Nature Center activities - - - - 102,859102,859 -
Public improvements - - 941,074 - - 941,074
Housing loan program - - - - - - 2,793,420
Total committed00941,07401,267,9932,209,0672,793,420
Assigned to:
Capital improvements - 5,843,685 - 5,264,318 - 11,108,003 -
Total assigned05,843,68505,264,318011,108,0030
Unassigned6,708,284 - - - (98,164)6,610,1204,198,447
Total$6,773,555$8,065,942$941,074$5,264,318$1,477,445$22,522,334$9,668,934
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, 2011, the unassigned fund balance of the General Fund was $6,708,284,
compared to its targeted unassigned fund balance of between $4,990,000 and $7,129,000.
73
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
11. Tax Increment Districts
The HRA is the administering authority for the following Tax Increment Districts:
FiscalRetained
YearTax Capacity ValuesDisparityBy
EstablishedDistrictDistrict NameCurrentOriginalCapturedAdjustmentsAuthority
19856Lake Pointe997,730 83,780 913,950 - 913,950
19867Winfield66,292 3,582 62,710 - 62,710
19899Onan/Old Central Avenue408,12942,978365,151 - 365,151
199211University/Osborne90,15826,47863,680 - 63,680
199212McGlynn's80,75641,25439,502 - 39,502
199513Satellite Lane Apartments45,4922,33443,158 - 43,158
19971657th Avenue Replacement31,0247,30123,723 - 23,723
200017Gateway East41,8255,04236,783 - 36,783
200718Gateway West13,8344,2589,576 - 9,576
1995HR1/04Housing Replacement5,360 5434,8174,817
1995HR1/05Housing Replacement2,129 2701,859 - 1,859
1995HR1/06Housing Replacement5,448 6864,762 - 4,762
1995HR1/Q2Housing Replacement2,039 3181,721 - 1,721
1995HR1/Q3Housing Replacement1,826 3931,433 - 1,433
1995HR1/Q4Housing Replacement5,714 7814,933 - 4,933
1995HR1/S3Housing Replacement2,192 5161,676 - 1,676
1995HR1/S4Housing Replacement2,274 5631,711 - 1,711
1995HR1/S5Housing Replacement1,743 3751,368 - 1,368
1995HR1/S6Housing Replacement1,853 4431,410 - 1,410
1995HR1/T7Housing Replacement2,073 6401,433 - 1,433
8184,13445,628138,506 - 138,506
Totals1,992,025268,1631,723,862 - 1,723,862
12. Commitments and Contingencies
A. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. During 1987, the City
established the Self Insurance Fund (an Internal Service Fund) to account for and finance its
uninsured risks of loss.
Workers compensation coverage is provided through a pooled self-insurance program through
the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to
the LMCIT. The City is subject to supplemental assessments if deemed necessary by the
LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA)
as required by law. For workers compensation, the City is subject to a $500 deductible.
Property and casualty insurance coverage is provided through a pooled self-insurance program
through LMCIT. The City pays an annual premium to the LMCIT. The City is subject to
supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through
commercial companies for claims in excess of various amounts. For property (other than
vehicles for which the City is self-insured) and casualty coverage, the City has a $50,000
deductible per occurrence with a $100,000 annual maximum. This deductible gets paid out of the
Self-Insurance Fund as necessary.
74
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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, 2011, the Self Insurance Fund has accumulated equity in the amount of
$1,477,399 to cover future claims and losses.
B. Litigation
The City attorney has indicated that existing and pending lawsuits, claims and other actions in
which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the
judgment of the City attorney, remotely recoverable by plaintiffs.
C. Federal and State Funds
The City receives financial assistance from federal and state governmental agencies in the form
of grants. The disbursement of funds received under these programs generally requires
compliance with the terms and conditions specified in the grant agreements and are subject to
audit by the grantor agencies. Any disallowed claims resulting from such audits could become a
liability of the applicable fund. However, in the opinion of management, any such disallowed
claims will not have a material effect on any of the financial statements of the individual fund
types included herein or on the overall financial position of the City at December 31, 2011.
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.
75
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
E. Contingent Liability
The HRA entered into various limited tax increment revenue notes with developers whereby the
HRA shall pay the developers the lesser of the scheduled payment or available tax increment.
Whether a payment will occur, and if so, the amount of the payment(s) are uncertain since all
payments are dependent on the HRA receiving tax increments from the developer’s project. As
such, this liability has not been recorded in the financial statements.
The HRA has issued various Tax Increment Revenue Notes. These notes are not a general
obligation of the HRA and are payable solely from available tax increments. Accordingly, these
notes are not reflected in the financial statements of the HRA. A schedule of outstanding notes at
December 31, 2011 is as follows:
Original InterestMaturity
NotePrincipalRateDate
Medtronic$10,000,0006.75%August 1, 2025
Linn175,0008.50%February 1, 2012
TIF #191,500,0007.00%February 1, 2025
F. Construction Commitments
At December 31, 2011, the City had construction project contracts in progress. The commitments
related to the remaining contract balances amounted to approximately $18,000.
13. Leases
A. Lease Expense
The City leases space for one of its liquor stores. Total costs for this lease was $119,404 for the
year ended December 31, 2011. The future minimum lease payments for this lease are as
follows:
Year Ending
December 31,Amount
2012109,981
2013109,981
201491,650
Total$311,612
76
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
B. Lease Revenue
The City receives revenue from agreements for the lease of space above its water towers to
communication companies. The space is used for antennas and other equipment necessary to
provide radio communications. For accounting purposes, the leases are considered operating
leases. Lease revenue for the year ended December 31, 2011, totaled $252,413. Terms of each
lease are as follows:
Annual
Lease
AdjustmentExpirationRenewal
LesseeFactor*DateOptions
T-Mobile-CommonsGreater of 2% or CPI up to 5%07/01/154 Five Year Renewals
T-Mobile Highway 65Greater of 3% or CPI12/31/161 Five Year Renewals
T-Mobile - Marion HillsGreater of 2% or CPI up to 5%09/01/124 Five Year Renewals
AT&T - GarageGreater of 5% or CPI12/01/133 Five Year Renewals
AT&T - Marion HillsGreater of 5% or CPI06/30/153 Five Year Renewals
Sprint - Highway 65Greater of 5% or CPI09/30/153 Five Year Renewals
Crown Castle - Well #13Greater of 5% or CPI09/30/132 Five Year Renewals
ClearWire Legacy-Marion HillsGreater of 4% or CPI08/01/154 Five Year Renewals
ClearWire Legacy-Hwy65Greater of 4% or CPI08/01/154 Five Year Renewals
ClearWire Legacy-CommonsGreater of 4% or CPI06/05/154 Five Year Renewals
TTM Operating Corp-CommonsGreater of 3% or CPI04/01/154 Five Year Renewals
TTM Operating Corp-Hwy65Greater of 3% or CPI08/01/154 Five Year Renewals
Metropolitan CouncilN/A12/31/134 One Year Renewals
*Amounts for future lease receipts are unavailable because they are based on the
Consumer Price Index.
14. 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, 2011, there were 30 series of Industrial Revenue Bonds issued. The aggregate
principal amount payable for the eight series issued after July 1, 1995 is $13,788,547. The aggregate
principal amount payable for the twenty-two series issued prior to July 1, 1995, could not be determined;
however, their original issue amounts totaled $65.2 million.
77
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
15. Deficit Fund Balances
At December 31, 2011, individual funds with a deficit fund balance are as follows:
Primary government:
Non major Special Revenue Fund:
Police Activity$98,164
Component unit:
Lake Pointe449,243
Gateway East698,961
Gateway West1,513,137
57th Avenue Redevelopment73,257
TIF #194,012
Satellite Lane Apartments315
Gateway NorthEast1,122,023
House Replacement #19,561
16. 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. 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 2012, and 22.22% of tax
increment note payments receivable from 2012 through 2026.
17. Recently Issued Accounting Standards
The Governmental Accounting Standards Boards (GASB) recently approved the following
statements which were not implemented for these financial statements:
Statement No. 60
Accounting and Financial Reporting for Service Concession Arrangements.
The provisions of this Statement are effective for financial statements for periods beginning
after December 15, 2011.
Statement No. 61
The Financial Reporting Entity Omnibus – An Amendment of GASB No. 14
and No. 34.The provisions of this Statement are effective for financial statements for periods
beginning after June 15, 2012.
Statement No. 62
Codification of Accounting and Financial Reporting Guidance Contained in
Pre-November 30, 1989 FASB and AICPA Pronouncements. The provisions of this Statement
are effective for financial statements for periods beginning after June 15, 2011.
Statement No. 63
Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of
Resources and Net Position.The provisions of this Statement are effective for financial
statements for periods beginning after December 15, 2011.
Statement No. 65
Items Previously Reported as Assets and Liabilities. The provisions of this
Statement are effective for financial statements for periods beginning after December 15,
2012.
Statement No. 66
Technical Corrections – 2012. The provisions of this Statement are
effective for financial statements for periods beginning after December 15, 2012.
The effect these standards may have on future financial statements is not determinable at this
time.
78
REQUIRED SUPPLEMENTARY INFORMATION
79
Exhibit B-1
Page 1 of 4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2011
With comparative actual amounts for the year ended December 31, 2010
2011
Variance with
Final Budget - 2010
Budgeted AmountsActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Taxes and special assessments:
Current ad valorem taxes$9,407,206$8,900,220$8,940,975$40,755$9,034,099
Delinquent ad valorem taxes76,00076,00087,65411,654143,959
Penalties and interest20,00020,00029,2509,25019,667
Special assessments33,00033,00029,577(3,423)51,632
Total taxes and special assessments9,536,2069,029,2209,087,45658,2369,249,357
Licenses and permits:
Licenses:
Rental120,000120,000158,18538,185125,163
Business76,00076,00087,32511,32593,151
All other30,00030,00034,0554,05529,175
Permits355,700355,700567,827212,127498,412
Total licenses and permits581,700581,700847,392265,692745,901
Intergovernmental revenue:
Federal grants13,00037,860112,15974,29940,128
State maintenance aid298,000298,000335,29337,293217,973
State credits - 506,98616,627(490,359)17,343
Local government aid - - 762,495762,495759,414
Other state grants - - 1,8521,8526,976
Police and fire pension416,282416,282393,942(22,340)398,474
Total intergovernmental revenue727,2821,259,1281,622,368363,2401,440,308
Charges for services:
General government1,307,9001,307,9001,328,85320,9531,191,981
Public safety191,600205,708265,78560,077243,408
Public works55,00055,00016,460(38,540)24,019
Community development8,9078,90718,2749,36721,495
Recreation220,000220,000202,911(17,089)215,224
Total charges for services1,783,4071,797,5151,832,28334,7681,696,127
Fines and forfeits250,000250,000165,314(84,686)182,044
Investment income20,00020,00085,70365,70345,319
Miscellaneous revenue:
Insurance and other reimbursements58,50058,50097,46938,96957,095
Gambling tax65,00065,00055,582(9,418)50,447
Donations - 5,00029,97524,97516,061
Miscellaneous50,00050,00020,968(29,032)11,783
Total miscellaneous revenue173,500178,500203,99425,494135,386
Total revenues13,072,095 13,116,063 13,844,510 728,447 13,494,442
80
Exhibit B-1
Page 2 of 4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2011
With comparative actual amounts for the year ended December 31, 2010
2011
Variance with
Final Budget - 2010
Budgeted AmountsActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Expenditures:
General government:
Mayor and council:
Personal services$91,790$91,790$88,151$3,639$88,005
Supplies and other charges29,14029,14027,3781,76227,417
Total mayor and council120,930120,930115,5295,401115,422
City manager:
Personal services223,238224,691224,691 - 225,792
Supplies and other charges56,45054,99550,8944,10149,626
Total City manager279,688279,686275,5854,101275,418
Human resources:
Personal services184,058184,405184,405 - 191,604
Supplies and other charges14,82914,48111,6122,8699,082
Total human resources198,887198,886196,0172,869200,686
Legal:
Supplies and other charges417,500417,500383,84133,659368,846
Elections:
Personal services5050 - 502,036
Supplies and other charges2,7502,750142,73638,697
Total elections2,8002,800142,78640,733
Accounting:
Personal services595,023600,489600,489 - 560,909
Supplies and other charges69,01064,08564,085 - 67,853
Total accounting664,033664,574664,5740628,762
Assessing:
Personal services195,265174,096167,6236,473187,641
Supplies and other charges6,40027,02827,028 - 4,633
Total assessing201,665201,124194,6516,473192,274
MIS:
Personal services205,150206,453206,453 - 201,180
Supplies and other charges24,49223,18914,9708,21919,785
Total MIS229,642229,642221,4238,219220,965
City clerk/records:
Personal services135,143135,143130,3904,753140,674
Supplies and other charges18,84618,84617,6301,21617,002
Total City clerk/records153,989153,989148,0205,969157,676
Nondepartmental:
Personal services10,00010,68510,685 - 22,087
Supplies and other charges25,10024,41518,0396,37621,232
Total nondepartmental35,10035,10028,7246,37643,319
81
Exhibit B-1
Page 3 of 4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2011
With comparative actual amounts for the year ended December 31, 2010
2011
Variance with
Final Budget - 2010
Budgeted AmountsActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Expenditures: (continued)
General government: (continued)
Municipal center:
Personal services$38,095$38,095$22,775$15,320$24,308
Supplies and other charges229,207229,207212,76716,440185,923
Total municipal center267,302267,302235,54231,760210,231
Total general government2,571,5362,571,5332,463,920107,6132,454,332
Public safety:
Police:
Personal services4,370,3774,443,4354,379,97263,4634,363,417
Supplies and other charges493,993499,266483,35515,911484,730
Total police4,864,3704,942,7014,863,32779,3744,848,147
Fire:
Personal services1,012,286986,685986,685 - 1,120,695
Supplies and other charges166,159179,537179,537 - 156,393
Total fire1,178,4451,166,2221,166,22201,277,088
Rental inspections:
Personal services140,835140,835126,13014,70586,120
Supplies and other charges11,67211,6725,8045,8686,880
Total rental inspections152,507152,507131,93420,57393,000
Civil defense:
Supplies and other charges18,94325,31321,9143,39916,185
Total public safety6,214,2656,286,7436,183,397103,3466,234,420
Public works:
Engineering:
Personal services468,884469,511469,511 - 459,842
Supplies and other charges56,73056,10355,0051,09844,114
Total engineering525,614525,614524,5161,098503,956
Public works and parks:
Personal services1,647,6651,654,6171,598,16356,4541,651,901
Supplies and other charges1,003,2811,048,493932,722115,771867,685
Total public works and parks2,650,9462,703,1102,530,885172,2252,519,586
Total public works3,176,5603,228,7243,055,401173,3233,023,542
Community development:
Building inspection:
Personal services245,925246,280246,280 - 245,532
Supplies and other charges68,34967,99462,6265,36857,747
Total building inspection314,274314,274308,9065,368303,279
82
Exhibit B-1
Page 4 of 4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2011
With comparative actual amounts for the year ended December 31, 2010
2011
Variance with
Final Budget - 2010
Budgeted Amounts
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Expenditures: (continued)
Community development: (continued)
Planning:
Personal services$388,622$389,662$389,662$ - $378,449
Supplies and other charges56,19055,15040,14815,00246,633
Total planning444,812444,812429,81015,002425,082
Total community development759,086759,086738,71620,370728,361
Parks and recreation:
Personal services606,409606,410555,96850,442582,167
Supplies and other charges257,433257,434215,01542,419226,278
Total parks and recreation863,842863,844770,98392,861808,445
Contingency:
Current:
Supplies and other charges105,00090,082 - 90,082 -
Capital outlay:
Public safety123,760168,673168,673 - 74,595
Public works126,000126,000113,64712,353208,556
Total capital outlay249,760294,673282,32012,353283,151
Total expenditures13,940,04914,094,68513,494,737599,94813,532,251
Excess (deficiency) of revenues over
(under) expenditures(867,954)(978,622)349,7731,328,395(37,809)
Other financing sources (uses):
Bonds issued - - - - 550,000
Bond premiums and issuance costs - net - - - - (3,388)
Proceeds from sale of capital assets - - 15,09615,09616,500
Transfers in600,000623,467623,467 - 600,000
Total other financing sources (uses)600,000623,467638,56315,0961,163,112
Net change in fund balance($267,954)($355,155)988,336$1,343,4911,125,303
Fund balance - January 15,785,2194,659,916
Fund balance - December 31$6,773,555$5,785,219
83
Exhibit B-2
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GRANT MANAGEMENT FUND
For The Year Ended December 31, 2011
With comparative actual amounts for the year ended December 31, 2010
2011
Variance with
Final Budget - 2010
Budgeted AmountsActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Intergovernmental:
Federal grants$112,030$217,049$104,599($112,450)$118,965
State Grants32,37732,377135,727103,350120,161
Total revenues144,407 249,426 240,326 (9,100)239,126
Expenditures:
Current:
Community development:
Personal services132,512132,512123,4129,100141,233
Supplies and other charges11,895116,914116,914 - 97,893
Total expenditures144,407 249,426 240,326 9,100 239,126
Excess (deficiency) of revenues over
(under) expenditures$0$00$00
Fund balance - January 1 - -
Fund balance - December 31$0$0
84
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2011
A. BUDGETS
The General Fund and Grant Management Fund budgets are legally adopted on a basis consistent
with accounting principles generally accepted in the United States of America. The legal level of
budgetary control is at the expenditure category level.
85
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS - RETIREE HEALTH PLAN
For The Year Ended December 31, 2011
Unfunded
ActuarialActuarialUAAL as a
ActuarialActuarialAccruedAccruedFundedCoveredPercentage of
ValuationValue of AssetsLiability (AAL)*Liability (UAAL)RatioPayrollCovered Payroll
Date(a)(b)(b-a)(a/b)(c) ( (b-a) / c)
January 1, 2011$ - $616,348$616,3480.0%$8,186,0317.5%
January 1, 2008$ - $1,910,670$1,910,6700.0%$9,303,57620.5%
*Using the projected unit credit actuarial cost method.
Note, the first OPEB actuarial valuation was conducted as of January 1, 2008. There is no data available prior
to the first valuation.
86
COMBINED, COMBINING AND INDIVIDUAL FUND STATEMENTS AND
SCHEDULES
87
NONMAJOR GOVERNMENTAL FUNDS
88
SPECIAL REVENUE FUNDS
A Special Revenue Fund accounts 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.
89
Exhibit C-1
CITY OF FRIDLEY, MINNESOTA
COMBINED BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2011
Nonmajor Special
Revenue
2011
Assets
Cash and investments$1,494,434
Receivables:
Accounts116,793
Taxes9,835
Due from other governments32,537
Total assets$1,653,599
Liabilities and Fund Balance
Liabilities:
Accounts payable$27,003
Due to other governments373
Due to other funds121,854
Salaries payable19,044
Deferred revenue7,880
Total liabilities176,154
Fund balance:
Restricted307,616
Committed1,267,993
Unassigned(98,164)
Total fund balance1,477,445
Total liabilities and fund balance$1,653,599
90
Exhibit C-2
CITY OF FRIDLEY, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2011
With comparative amounts for the year ended December 31, 2010
Nonmajor Special Revenue
20112010
Revenues:
Taxes$314,261$313,852
Licenses and permits237,708228,084
Intergovernmental revenue86,17270,942
Charges for services370,395376,643
Fines and forfeits93,05858,836
Investment income19,62511,433
Miscellaneous118,29067,456
Total revenues1,239,509 1,127,246
Expenditures:
Current:
General government636,621542,986
Public safety101,26194,934
Parks, recreation and naturalist397,564432,399
Capital outlay27,25614,641
Total expenditures1,162,7021,084,960
Excess (deficiency) of revenues over (under) expenditures76,807 42,286
Other financing sources (uses):
Transfers in16,70535,467
Total other financing sources (uses)(6,762)35,467
Net change in fund balance70,045 77,753
Fund balance - January 11,407,4001,329,647
Fund balance - December 31$1,477,445$1,407,400
91
CITY OF
FRIDLEY
92
NONMAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues derived from specific taxes or other
earmarked revenue sources. They are usually required by statute, charter provision or local
ordinance to finance particular governmental functions or activities.
Cable TV Fund - This fund receives revenues from the issuance of a franchise agreement with
the cable TV provider. These revenues are used for the operation and maintenance of a
government access channel.
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.
HRA Reimbursement Fund - This fund receives revenues from the Housing and
Redevelopment Authority. These revenues are used to reimburse the City for professional
services provided by City staff for HRA related activities.
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.
F.C.C. Donations Fund - This fund is used to account for donations received and used in
improving and furnishing the Fridley Community Center.
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.
93
CITY OF FRIDLEY, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2011
Solid Waste
AssetsCable TVAbatement
Cash and investments$1,309,126$ -
Receivables:
Receivables:
Accounts59,71757,076
Taxes - -
Due from other governments -32,357
Total assets$1,368,843$89,433
Liabilities and Fund Balance
Liabilities:
Accounts payable$116$24,492
Due to other governments - 73
Due to other funds - 26,612
Salaries payable2,9722,752
Deferred revenue - -
Total liabilities3,08853,929
Fund balance:
Restricted236,125 -
Committed1,129,63035,504
Unassigned - -
Total fund balance1,365,75535,504
Total liabilities and fund balance$1,368,843$89,433
,,,
94
Exhibit C-3
Totals Nonmajor
Drug and Gambling Springbrook Nature Special Revenue
ForfeiturePolice ActivityCenterFunds
2011
$71,627$ -$113,681$1,494,434
- - -116,793
- -9,8359,835
-180 -32,537
$71,627$180$123,516$1,653,599
$ -$ -$2,395$27,003
136 -164373
-95,242 -121,854
-3,10210,21819,044
- -7,8807,880
13698,34420,657176,154
71,491 - -307,616
- -102,8591,267,993
-(98,164) -(98,164)
71,491(98,164)102,8591,477,445
$71,627$180$123,516$1,653,599
,,,,
95
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2011
With comparative totals for the year ended December 31, 2010
Solid Waste
Cable TVAbatement
Revenues:
Taxes$ -$ -
Licenses and permits237,708 -
Intergovernmental revenue - 66,241
Charges for services700267,406
Fines and forfeits - -
Investment income18,899 -
Miscellaneous - 104,833
Total revenues257,307438,480
Expenditures:
Current:
General government147,332436,724
Public safety - -
Parks, recreation and naturalist - -
Capital outlay9,476 -
Total expenditures156,808436,724
Excess (deficiency) of revenues
over (under) expenditures100,4991,756
Other financing sources (uses):
Transfers in - 16,705
Transfers out - -
Total other financing sources (uses)016,705
Net change in fund balance100,49918,461
Fund balance - January 11,265,25617,043
Fund balance - December 31$1,365,755$35,504
96
Exhibit C-4
Drug and
HRAGamblingF.C.C.Springbrook
Totals Nonmajor Special
ReimbursementForfeitureDonationsPolice ActivityNature Center
Revenue Funds
20112010
$ - $ - $ - $ - $314,261$314,261$313,852
- - - - - 237,708228,084
7,171 - - 12,760 - 86,17270,942
- - - - 102,289370,395376,643
- 71,497 - 21,561 - 93,05858,836
- - 103 - 62319,62511,433
- - - - 13,457118,29067,456
7,17171,49710334,321430,6301,239,5091,127,246
7,171 - 45,394 - - 636,621542,986
- 25,579 - 75,682 - 101,26194,934
- - - - 397,564397,564432,399
- - - - 17,78027,25614,641
7,17125,57945,39475,682415,3441,162,7021,084,960
045,918(45,291)(41,361)15,28676,80742,286
- - - - - 16,70535,467
- - (23,467) - - (23,467) -
00(23,467)00(6,762)35,467
045,918(68,758)(41,361)15,28670,04577,753
- 25,57368,758(56,803)87,5731,407,4001,329,647
$0$71,491$0($98,164)$102,859$1,477,445$1,407,400
97
Exhibit D-1
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - CABLE TV FUND
COMPARATIVE BALANCE SHEET
December 31, 2011 and 2010
Assets
20112010
Cash and investments$1,309,126$1,210,299
Accounts receivable59,71757,895
Total assets$1,368,843$1,268,194
Liabilities and Fund Balance
Liabilities:
Accounts payable$116$87
Salaries payable2,9722,851
Total liabilities3,0882,938
Fund balance:
Restricted236,125236,125
Committed1,129,6301,029,131
Total fund balance1,365,7551,265,256
Total liabilities and fund balance$1,368,843$1,268,194
98
Exhibit D-2
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - CABLE TV FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2011
With comparative actual amounts for the year ended December 31, 2010
20112010
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Licenses - franchise fee$235,000$235,000$237,708$228,084
Charges for services850850700700
Investment income5,0005,00018,89910,910
Miscellaneous200200 - 66
Total revenues241,050 241,050 257,307 239,760
Expenditures:
Current:
General government:
Personal services137,195137,195137,123135,182
Supplies and other charges13,40813,40810,2097,254
Capital outlay15,00015,0009,476 -
Total expenditures165,603 165,603 156,808 142,436
Excess of revenues over expenditures$75,447$75,447100,49997,324
Fund balance - January 11,265,2561,167,932
Fund balance - December 31$1,365,755$1,265,256
99
Exhibit D-3
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - SOLID WASTE ABATEMENT FUND
COMPARATIVE BALANCE SHEET
December 31, 2011 and 2010
Assets
20112010
Accounts receivable$57,076$51,080
Due from other governments32,35738,785
Total assets$89,433$89,865
Liabilities and Fund Balance
Liabilities:
Accounts payable$24,492$23,761
Due to other governments73 -
Salaries payable2,7522,443
Due to other funds26,61246,618
Total liabilities53,92972,822
Fund balance:
Committed35,50417,043
Total liabilities and fund balance$89,433$89,865
100
Exhibit D-4
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - SOLID WASTE ABATEMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2011
With comparative actual amounts for the year ended December 31, 2010
20112010
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Intergovernmental revenue:
State$71,350$71,350$66,241$48,441
Charges for services316,524316,524267,406277,074
Miscellaneous6,00032,145104,83325,540
Total revenues393,874 420,019 438,480 351,055
Expenditures:
Current:
General government:
Personal services54,46366,71266,71259,014
Supplies and other charges356,116370,012370,012323,908
Total expenditures410,579 436,724 436,724 382,922
Excess (deficiency) of revenues
over (under) expenditures(16,705)(16,705)1,756(31,867)
Other financing sources:
Transfers in16,70516,70516,70535,467
Net change in fund balance$0$018,4613,600
Fund balance (deficit) - January 117,04313,443
Fund balance - December 31$35,504$17,043
101
Exhibit D-5
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - HRA REIMBURSEMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2011
With comparative actual amounts for the year ended December 31, 2010
20112010
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Intergovernmental revenue:
Housing and Redevelopment Authority$ - $7,171$7,171$17,224
Expenditures:
Current:
General government:
Supplies and other charges - 7,1717,17117,224
Excess (deficiency) of revenues
over (under) expenditures$0$000
Fund balance - January 1 - -
Fund balance - December 31$0$0
102
Exhibit D-6
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - DRUG AND GAMBLING FORFEITURE FUND
COMPARATIVE BALANCE SHEET
December 31, 2011 and 2010
Assets
20112010
Cash and investments$71,627$24,549
Accounts receivable -894
Due from other governments -130
Total assets$71,627$25,573
Liabilities and Fund Balance
Liabilities$136$ -
Fund balance:
Restricted71,49125,573
Total fund balance71,49125,573
Total liabilities and fund balance$71,627$25,573
103
Exhibit D-7
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - DRUG AND GAMBLING FORFEITURE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2011
With comparative actual amounts for the year ended December 31, 2010
20112010
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Fines and forfeits$ - $25,579$71,497$23,941
Expenditures:
Current:
Public safety
Supplies and other charges - 25,57925,57926,717
Excess (deficiency) of revenues
over (under) expenditures$0$045,918(2,776)
Fund balance - January 125,57328,349
Fund balance - December 31$71,491$25,573
104
Exhibit D-8
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - F.C.C. DONATIONS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2011
With comparative actual amounts for the year ended December 31, 2010
20112010
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Investment income$ - $103$103$765
Expenditures:
Current:
General government:
Supplies and other charges - 45,39445,394404
Capital outlay - - - 14,641
Total expenditures045,39445,39415,045
Excess (deficiency) of revenues
over (under) expenditures0(45,291)(45,291)(14,280)
Other financing sources (uses):
Transfers out(23,467)(23,467)0
Total other financing sources (uses)0(23,467)(23,467)0
Net change in fund balance$ - ($68,758)(68,758)(14,280)
Fund balance - January 168,75883,038
Fund balance - December 31$0$68,758
105
Exhibit D-9
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - POLICE ACTIVITY FUND
COMPARATIVE BALANCE SHEET
December 31, 2011 and 2010
Assets
20112010
Due from other governments$180$16,312
Total assets$180$16,312
Liabilities and Fund Balance
Liabilities:
Salaries payable$3,102$2,598
Due to other funds95,24270,517
Total liabilities98,34473,115
Fund balance:
Unassigned(98,164)(56,803)
Total liabilities and fund balance$180$16,312
106
Exhibit D-10
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - POLICE ACTIVITY FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2011
With comparative actual amounts for the year ended December 31, 2010
20112010
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Intergovernmental$16,000$16,000$12,760$5,277
Fines and forfeits - - 21,56134,895
Investment income - - - (516)
Total revenues16,00016,00034,32139,656
Expenditures
Current:
Public safety:
Personal services84,17784,17775,68268,217
Excess (deficiency) of revenues
over (under) expenditures($68,177)($68,177)(41,361)(28,561)
Fund balance (deficit) - January 1(56,803)(28,242)
Fund balance (deficit) - December 31($98,164)($56,803)
()()()
107
Exhibit D-11
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - SPRINGBROOK NATURE CENTER FUND
COMPARATIVE BALANCE SHEET
December 31, 2011 and 2010
Assets
20112010
Cash and investments$113,681$95,521
Receivables:
Taxes9,83511,368
Due from other governments -2,678
Total assets$123,516$109,567
Liabilities and Fund Balance
Liabilities:
Accounts payable$2,395$2,854
Salaries payable10,21810,449
Due to other governments16475
Deferred revenue7,8808,616
Total liabilities20,65721,994
Fund balance:
Committed102,85987,573
Total liabilities and fund balance$123,516$109,567
108
Exhibit D-12
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - SPRINGBROOK NATURE CENTER FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2011
With comparative actual amounts for the year ended December 31, 2010
20112010
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Taxes$314,400$314,400$314,261$313,852
Charges for service89,900101,357102,28998,869
Investment income - - 623274
Miscellaneous - 13,45713,45741,850
Total revenues404,300429,214430,630454,845
Expenditures:
Current:
Parks, recreation and naturalist
Personal services324,487328,435328,435326,201
Supplies and other charges65,94369,12969,129106,198
Capital outlay - 17,78017,780 -
Total expenditures390,430 415,344 415,344 432,399
Excess (deficiency) of revenues
over (under) expenditures$13,870$13,87015,28622,446
Fund balance - January 187,57365,127
Fund balance - December 31$102,859$87,573
109
CITY OF
FRIDLEY
110
CAPITAL PROJECT FUND
The Capital Project Fund is used to account for the resources expended to
acquire permanent or long-term assets. This fund is established to provide
special accounting for bond proceeds, grants and contributions designated for
the acquisition of capital assets.
111
Exhibit E-1
CITY OF FRIDLEY, MINNESOTA
CAPITAL PROJECT FUND - CAPITAL IMPROVEMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2011
With comparative actual amounts for the year ended December 31, 2010
20112010
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Taxes$ - $ - $190$272
Special assessments - - 135,848 -
Intergovernmental revenue: -
State580,000580,000476,0711,296,425
Investment income88,00888,00879,56351,357
Miscellaneous10,00010,0003,00035,067
Total revenues678,008 678,008 694,672 1,383,121
Expenditures:
Current:
General government:
Supplies and other charges - 8,1668,1662,116
Parks, recreation and naturalist:
Supplies and other charges55,00047,67826,86351,939
Capital outlay66,000116,71071,71032,027
Total expenditures121,000 172,554 106,739 86,082
Excess of revenues over expenditures557,008505,454587,9331,297,039
Other financing sources (uses):
Transfers out(610,000)(610,000)(610,000)(600,000)
Transfers In45,00045,00030,000 -
Total other financing sources (uses)(565,000)(565,000)(580,000)(600,000)
Net change in fund balance($7,992)($59,546)7,933697,039
Fund balance - January 15,256,3854,559,346
Fund balance - December 31$5,264,318$5,256,385
112
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for goods and services that are
provided on a cost reimbursement or fee basis to departments or agencies within
the City. These funds are essential for segregating costs for determining the
total cost of providing a service and for assuring that the goods and services
provided are properly utilized. These funds are accounted for on a capital
maintenance measurement focus and use the accrual basis of accounting.
Employee Benefits Fund – This fund is used to account for the expenses
associated with providing fringe benefits for employees.
Self-Insurance Fund – This fund is used to account for all revenues and
expenses associated with the $50,000 deductible in the City’s general liability
policy.
Information Systems Fund – This fund is used to account for all revenues and
expenses associated with maintaining and upgrading the City’s computerized
information systems.
113
Exhibit F-1
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2011
With comparative totals for December 31, 2010
EmployeeSelfInformation
BenefitsInsuranceSystems
Totals
Assets:20112010
Current assets:
Cash and investments$1,327,101$1,480,744$453,328$3,261,173$3,429,648
Due from component unit92 - - 92138
Total current assets1,327,1931,480,744453,3283,261,2653,429,786
Capital assets, at cost:
Machinery and equipment - - 1,706,4071,706,4071,622,539
Less: accumulated depreciation - - (1,415,636)(1,415,636)(1,343,975)
Net capital assets00290,771290,771278,564
Total assets1,327,1931,480,744744,0993,552,0363,708,350
Liabilities:
Current liabilities:
Accounts payable - - 4,9414,941 -
Due to component unit - 3,345 - 3,3451,502
Payroll deductions payable100,894 - - 100,89495,085
Compensated absences payable -
current portion767,935 - - 767,935799,284
Total current liabilities868,8293,3454,941877,115895,871
Noncurrent liabilities:
Compensated absences payable228,771 - - 228,771174,679
Total liabilities1,097,6003,3454,9411,105,8861,070,550
Net assets:
Invested in capital assets - - 290,771290,771278,564
Unrestricted229,5931,477,399448,3872,155,3792,359,236
Total net assets$229,593$1,477,399$739,158$2,446,150$2,637,800
114
Exhibit F-2
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS
INTERNAL SERVICE FUNDS
For The Year Ended December 31, 2011
With comparative totals for the year ended December 31, 2010
EmployeeSelfInformation
BenefitsInsuranceSystems
Totals
20112010
Operating revenues:
Charges for services$24,483$ - $4,919$29,402$29,831
Operating expenses:
Personal services24,48323,148 - 47,63138,080
Supplies and other charges3,64443,09537,18983,92849,939
Depreciation - - 131,900131,900127,789
Total operating expenses28,12766,243169,089263,459215,808
Operating income (loss)(3,644)(66,243)(164,170)(234,057)(185,977)
Nonoperating revenues:
Investment income19,20522,7647,92549,89432,308
Intergovernmental - 9,943 - 9,94310,010
Insurance reimbursement - 12,729 - 12,729 -
Gain (loss) on disposal of capital assets - - (159)(159)3,610
Total nonoperating revenues19,20545,4367,76672,40745,928
Income (loss) before transfers15,561(20,807)(156,404)(161,650)(140,049)
Other financing sources (uses):
Transfers out - (30,000) - (30,000) -
Change in net assets15,561(50,807)(156,404)(191,650)(140,049)
Net assets - January 1214,0321,528,206895,5622,637,8002,777,849
Net assets - December 31$229,593$1,477,399$739,158$2,446,150$2,637,800
115
Exhibit F-3
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For The Year Ended December 31, 2011
With comparative totals for the year ended December 31, 2010
EmployeeSelfInformation
BenefitsInsuranceSystems
Totals
20112010
Cash flows from operating activities:
Receipts from interfund services provided$24,529$ - $4,919$29,448$29,924
Payment to suppliers(3,644)(41,252)(32,248)(77,144)(60,939)
Payment to employees4,069(23,148) - (19,079)(31,640)
Net cash flows from operating activities24,954(64,400)(27,329)(66,775)(62,655)
Cash flows from noncapital financing activities:
Transfer out0(30,000)0(30,000)0
Cash flows from capital and related
financing activities:
Acquisition of capital assets - - (144,266)(144,266)(125,699)
Intergovernmental revenue - 9,943 - 9,94310,010
Insurance reimbursement - 12,729 - 12,729 -
Proceeds from sale of capital assets - - - - 3,610
Net cash flows from capital and
and related financing activities 022,672(144,266)(121,594)(112,079)
Cash flows from investing activities:
Investment income19,20522,7647,92549,89432,308
Net increase (decrease) in cash and
cash equivalents44,159(48,964)(163,670)(168,475)(142,426)
Cash and cash equivalents - January 11,282,9421,529,708616,9983,429,6483,572,074
Cash and cash equivalents - December 31$1,327,101 $1,480,744 $453,328 $3,261,173 $3,429,648
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) ($3,644)($66,243)($164,170)($234,057)($185,977)
Adjustments to reconcile operating income
(loss) to net cash flows from operating
activities:
Depreciation - - 131,900131,900127,789
Changes in assets and liabilities:
Decrease (increase) in receivables46 - - 4693
Increase (decrease) in payables28,5521,8434,94135,336(4,560)
Total adjustments28,598 1,843 136,841 167,282 123,322
Net cash provided by operating activities$24,954($64,400)($27,329)($66,775)($62,655)
116
Exhibit F-4
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND - EMPLOYEE BENEFITS FUND
COMPARATIVE STATEMENT OF NET ASSETS
December 31, 2011
With comparative totals for December 31, 2010
20112010
Assets:
Current assets:
Cash and investments$1,327,101$1,282,942
Due from component unit92138
Total current assets1,327,1931,283,080
Liabilities:
Current liabilities:
Payroll deductions payable100,89495,085
Compensated absences payable - current portion767,935799,284
Total current liabilities868,829894,369
Noncurrent liabilities:
Compensated absences payable 228,771174,679
Total liabilities1,097,6001,069,048
Net assets:
Unrestricted229,593214,032
Total net assets$229,593$214,032
117
Exhibit F-5
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND - EMPLOYEE BENEFITS FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS
For The Year Ended December 31, 2011
With comparative amounts for the year ended December 31, 2010
20112010
Operating revenues$24,483$19,277
Operating expenses:
Personal services24,48319,277
Supplies and other charges3,6441,830
Total operating expenses28,12721,107
Operating income (loss)(3,644)(1,830)
Nonoperating revenues:
Investment income19,20511,783
Change in net assets15,5619,953
Net assets - January 1214,032204,079
Net assets - December 31$229,593$214,032
118
Exhibit F-6
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND - EMPLOYEE BENEFITS FUND
COMPARATIVE STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2011
With comparative amounts for the year ended December 31, 2010
20112010
Cash flows from operating activities:
Receipts from interfund services provided$24,529$19,370
Payment to suppliers(3,644)(1,830)
Payment to employees4,069(12,837)
Net cash flows from operating activities24,9544,703
Cash flows from investing activities:
Investment income19,20511,783
Net increase in cash and cash equivalents44,15916,486
Cash and cash equivalents - January 11,282,9421,266,456
Cash and cash equivalents - December 31$1,327,101 $1,282,942
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) ($3,644)($1,830)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Changes in assets and liabilities:
(Increase) decrease in receivables4693
Increase (decrease) in payables28,5526,440
Total adjustments28,5986,533
Net cash provided by operating activities$24,954$4,703
119
Exhibit F-7
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND - SELF INSURANCE FUND
COMPARATIVE STATEMENT OF NET ASSETS
December 31, 2011
With comparative amounts for December 31, 2010
20112010
Assets:
Current assets:
Cash and investments$1,480,744$1,529,708
Total assets1,480,7441,529,708
Liabilities:
Current liabilities:
Accounts payable3,3451,502
Net assets:
Unrestricted1,477,3991,528,206
Total net assets$1,477,399$1,528,206
120
Exhibit F-8
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND - SELF INSURANCE FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS
For The Year Ended December 31, 2011
With comparative amounts for the year ended December 31, 2010
20112010
Operating revenues$ - $ -
Operating expenses:
Supplies and other charges43,09548,109
Personal services23,14818,803
Total operating expenses66,24366,912
Operating income (loss)(66,243)(66,912)
Nonoperating revenues (expenses):
Intergovernmental9,94310,010
Investment income22,76414,398
Insurance reimbursement12,729 -
Total nonoperating revenues (expenses)45,43624,408
Income before transfers(20,807)(42,504)
Other financing uses:
Transfers out(30,000) -
Net change in fund balance(50,807)(42,504)
Net assets - January 11,528,2061,570,710
Net assets - December 31$1,477,399$1,528,206
121
Exhibit F-9
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND - SELF INSURANCE FUND
COMPARATIVE STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2011
With comparative amounts for the year ended December 31, 2010
20112010
Cash flows from operating activities:
Payment to employees($23,148)($18,803)
Payment to suppliers(41,252)(46,607)
Net cash flows from operating activities(64,400)(65,410)
Cash flows from nonpapital financing activities:
Transfer out(30,000) -
Cash flows from capital and related financing activities:
Intergovernmental revenue9,94310,010
Insurance reimbursement12,729 -
Net cash flows provided from capital and related financing activities22,67210,010
Cash flows from investing activities:
Investment income22,76414,398
Net increase (decrease) in cash and cash equivalents(48,964)(41,002)
Cash and cash equivalents - January 11,529,7081,570,710
Cash and cash equivalents - December 31$1,480,744 $1,529,708
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) ($66,243)($66,912)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Changes in assets and liabilities:
Increase (decrease) in payables1,8431,502
Total adjustments1,8431,502
Net cash provided (used) by operating activities($64,400)($65,410)
122
Exhibit F-10
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND - INFORMATION SYSTEMS FUND
COMPARATIVE STATEMENT OF NET ASSETS
December 31, 2011
With comparative amounts for December 31, 2010
20112010
Assets:
Current assets:
Cash and investments$453,328$616,998
Capital assets, at cost:
Property and equipment1,706,4071,622,539
Less: accumulated depreciation(1,415,636)(1,343,975)
Net capital assets290,771278,564
Total assets744,099895,562
Liabilities:
Current liabilities:
Accounts payable4,941 -
Net assets:
Invested in capital assets, net of related debt290,771278,564
Unrestricted448,387616,998
Total net assets$739,158$895,562
123
Exhibit F-11
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND - INFORMATION SYSTEMS FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS
For The Year Ended December 31, 2011
With comparative amounts for the year ended December 31, 2010
20112010
Operating revenues:
Charges for services$4,919$10,554
Operating expenses:
Supplies and other charges37,189 -
Depreciation131,900127,789
Total operating expenses169,089127,789
Operating income (loss)(164,170)(117,235)
Nonoperating revenues:
Investment income7,9256,127
Gain (loss) on disposal of fixed assets(159)3,610
Total nonoperating revenues7,7669,737
Change in net assets(156,404)(107,498)
Net assets - January 1895,5621,003,060
Net assets - December 31$739,158$895,562
124
Exhibit F-12
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND - INFORMATION SYSTEMS FUND
COMPARATIVE STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2011
With comparative amounts for the year ended December 31, 2010
20112010
Cash flows from operating activities:
Receipts from interfund services provided$4,919$10,554
Payment to suppliers(32,248)(12,502)
Net cash flows from operating activities(27,329)(1,948)
Cash flows from capital and related
financing activities:
Acquisition of capital assets(144,266)(125,699)
Proceeds from sale of capital assets -3,610
Net cash flows from capital
and related financing activities(144,266)(122,089)
Cash flows from investing activities:
Investment income7,9256,127
Net increase in cash and cash equivalents(163,670)(117,910)
Cash and cash equivalents - January 1616,998734,908
Cash and cash equivalents - December 31$453,328$616,998
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) ($164,170)($117,235)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation131,900127,789
Changes in assets and liabilities:
Increase (decrease) in payables4,941(12,502)
Total adjustments136,841115,287
Net cash provided by operating activities($27,329)($1,948)
125
CITY OF
FRIDLEY
126
HOUSING AND REDEVELOPMENT AUTHORITY
COMPONENT UNIT
127
CITY OF FRIDLEY, MINNESOTA
BALANCE SHEET - GOVERNMENTAL FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
December 31, 2011
GeneralHousing LoanCenter City
Assets
Cash and investments$2,622,508$2,801,309$12,897
Receivables:
Accounts46,687 - -
Delinquent taxes16,245 - -
Mortgage:
Deferred - 1,119,159 -
Allowance for uncollectible accounts -(57,959) -
Interest44,656 - -
Due from other funds5,379,825 - -
Prepaid expenses -4,399 -
Land held for resale2,499,615 - -
Total assets$10,609,536$3,866,908$12,897
Liabilities and Fund Balance
Liabilities:
Accounts payable$15,274$7,640$ -
Due to primary government9,194249 -
Due to other funds - - -
Deferred revenue2,515,860 - -
Total liabilities2,540,3287,8890
Fund balance (deficit):
Nonspendable - 1,065,599 -
Restricted - - 12,897
Committed - 2,793,420 -
Assigned - - -
Unassigned8,069,208 - -
Total fund balance (deficit)8,069,2083,859,01912,897
Total liabilities and fund balance$10,609,536$3,866,908$12,897
128
Exhibit G-1
OtherTotals
North Area / GovernmentalGovernmental
Univ. Ind. ParkLake PointeOnanGateway WestFundsFunds
2011
$33,710$556,284$1,270,339$206,972$1,514,599$9,018,618
- - - - -46,687
-4,6649,823 -1,02231,754
- - - - -1,119,159
- - - - -(57,959)
- - - - -44,656
- - - - -5,379,825
- - - - -4,399
-64,800 -245,790789,1003,599,305
$33,710$625,748$1,280,162$452,762$2,304,721$19,186,444
$ - $420,224$ - $ - $53,790$496,928
- - - - -9,443
-585,303 - 1,720,1093,074,4135,379,825
-69,4649,823245,790790,1223,631,059
01,074,9919,8231,965,8993,918,3259,517,255
- - - - -1,065,599
33,710 - 1,270,339 -294,5251,611,471
- - - - -2,793,420
- - - - - -
-(449,243) - (1,513,137)(1,908,129)4,198,699
33,710(449,243)1,270,339(1,513,137)(1,613,604)9,669,189
$33,710$625,748$1,280,162$452,762$2,304,721$19,186,444
Fund balance reported above$9,669,189
Amounts reported for governmental activities in the statement of net
assets are different because:
Capital assets used in governmental activities are not financial
resources, and therefore, are not reported in the funds2,023,511
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are deferred in the funds3,631,059
Net assets of governmental activities$15,323,759
129
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
For The Year Ended December 31, 2011
With comparative totals for the year ended December 31, 2010
GeneralHousing LoanCenter City
Revenues:
Tax increment$ - $ - $ -
Property taxes450,404 - -
Propertytaxes450,404
Intergovernmental revenue21,515 - -
Investment income28,65926,773 -
Mortgage interest earnings -47,074 -
Rental9,600 - -
Sale of real estate436,397 - -
Miscellaneous386,17622,870 -
Receipt from primary government - - -
TtlTotal revenues13327519671796,71700
Expenditures:
Personal services115,577 - -
Supplies and other charges276,883120,111 -
Capital outlay18,0489,9611,593
Developer assistance - - -
Decertificationoftifdistrict-- 0
Decertificationoftifdistrict--0
Payment to primary government - - -
Total expenditures410,508130,0721,593
Excess (deficiency) of revenues over
(under) expenditures922,243(33,355)(1,593)
Fund balance (deficit) - January 17,146,9653,892,37414,490
Fund balance (deficit) - December 31$8,069,208$3,859,019$12,897
130
Exhibit G-2
Other
North Area / Governmental
Univ. Ind. ParkLake PointeOnanGateway WestFunds
Totals Governmental Funds
20112010
$ - $941,910$352,872$7,870$433,760$1,736,412$1,742,816
- - - - - 450 ,404472,870
450,404472,870
- - - 94312,14534,60333,661
- 5,70211,3691,41213,75787,67257,746
- - - - - 47,07454,420
- - - - - 9,60011,800
- - - - 167,895604,292233,170
- - - - - 409,04621,143
- - - - - - 3,439
00947,612364,24110,225627,5573,379,1032,631,0659476123642411022562755733791032631065
- - - - - 115,577114,959
- 8,155220,16311,358378,1511,014,821637,813
- - - 6,371221,484257,4571,181,394
- 832,607 - - 107,238939,8451,106,860
0----- 1,518,845,,
0-----1518845
- - - - - - 1,755,062
0840,762220,16317,729706,8732,327,7006,314,933
0106,850144,078(7,504)(79,316)1,051,403(3,683,868)
33,710(556,093)1,126,261(1,505,633)(1,534,288)8,617,78612,301,654
$33,710($449,243)$1,270,339($1,513,137)($1,613,604)$9,669,189$8,617,786
Amounts reported for governmental activities in the statement of activities
(Exhibit A-2) are different because:
Net changes in fund balances - total above$1,051,403($3,683,868)
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds(682,656)354,707
Change in net assets of governmental activities (Exhibit A-2)$368,747($3,329,161)
131
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
December 31, 2011
With comparative totals for December 31, 2010
University / McGlynn
WinfieldGateway EastOsborneBakeries
Assets
Cash and investments$193,397$50,692$91,393$33,735
Delinquent taxes receivable403 - 146 -
Land held for resale - - - -
Total assets$193,800$50,692$91,539$33,735
Liabilities and Fund Balance
Liabilities:
Accounts payable$ - $ - $ - $ -
Due to other funds - 749,653 - 24,000
Deferred revenue403 - 146 -
Total liabilities403 749,653 146 24,000
Fund balance (deficit):
Restricted193,397 - 91,3939,735
Unassigned - (698,961) - -
Total fund balance (deficit)193,397 (698,961)91,3939,735
Total liabilities and fund balance$193,800$50,692$91,539$33,735
132
Exhibit G-3
HousingTotal Nonmajor
Satellite Lane 57th Avenue ReplacementGatewayCapital Project
Apts.RedevelopmentTIF #19#1NorthEastFunds
2011
$61,685$50,503$114,296$590,921$327,977$1,514,599
-89384 - - 1,022
- - - 259,920529,180789,100
$61,685$50,592$114,680$850,841$857,157$2,304,721
$ -$ - $53,308$482$ - $53,790
62,000123,76065,000600,0001,450,0003,074,413
-89384259,920529,180790,122
62,000 123,849 118,692 860,402 1,979,180 3,918,325
- - - - - 294,525
(315)(73,257)(4,012)(9,561)(1,122,023)(1,908,129)
(315)(73,257)(4,012)(9,561)(1,122,023)(1,613,604)
$61,685$50,592$114,680$850,841$857,157$2,304,721
133
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
For The Year Ended December 31, 2011
WithcomparativetotalsfortheyearendedDecember312010 comparaveoasore year eneecemer,
WithtittlfthddDb312010
University / McGlynn
WinfieldGateway EastOsborneBakeries
Revenues:
Taxincrement$75,188,$32,088,$64,319,$41,612,
Taxincrement$75188$32088$64319$41612
Intergovernmental revenue -4,188 - -
Investment income2,1339011,444826
Sale of real estate - - - -
Total revenues77,32137,17765,76342,438
Expenditures:
Supplies and other charges139,5161,4041,46312,684
Developer assistance - - - -
Capital outlay - - - -
Total expenditures139,5161,4041,46312,684
Excess (deficiency) of
revenues over (under) expenditures(62,195)35,77364,30029,754
Fundbalance(deficit)-January1 - 255592,(734734),27093,(20019),
Fundbalance(deficit)January1255592(734734)27093(20019)
Fund balance (deficit) - December 31$193,397($698,961)$91,393$9,735
134
Exhibit G-4
Housing
Satellite Lane 57th Avenue ReplacementGateway
Totals Nonmajor Capital Project
Apts.Redevelopment#1NorthEast
TIF #19Funds
20112010
$46,032,$27,887,$119,153,$27,481,$-$433,760,$451,062,
$46032$27887$119153$27481$-$433760$451062
5,107 - - 2,850 - 12,14512,070
1,1044503,7949652,14013,7578,250
- 24,861 - 143,034 - 167,895 -
52,24353,198122,947174,3302,140627,557471,382
1,3574,3431,58394,474121,327378,151241,771
- - 107,238 - - 107,238204,610
- - - 221,4840221,484971,592
1,3574,343108,821315,958121,327706,8731,417,973
50,88648,85514,126(141,628)(119,187)(79,316)(946,591)
(51201),(122112),(18138),132067,(1002836),,(1534288),,(587697),
(51201)(122112)(18138)132067(1002836)(1534288)(587697)
($315)($73,257)($4,012)($9,561)($1,122,023)($1,613,604)($1,534,288)
135
CITY OF
FRIDLEY
136
AGENCY FUNDS
Agency Funds account for assets held by a governmental unit in a trustee
capacity or as an agent for individuals, private organizations, other governmental
units, and/or other funds.
137
Exhibit H-1
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2011
Totals Agency Funds
Six Cities
Hotel/Motel TaxWatershed
20112010
Assets:
Cash and investments($129)$22,063$21,934$9,312
Receivables:
Accounts 2,572 - 2,5722,551
Taxes:
Unremitted -464682
Delinquent -208208228
Total assets$2,443$22,317$24,760$12,173
Liabilities:
Due to other governments$2,443$22,317$24,760$12,173
138
Exhibit H-2
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2011
BalanceBalance
January 1,December 31,
2011AdditionsDeletions2011
Six Cities Watershed
Assets:
Cash and investments$9,440$12,623$ - $22,063
Receivables:
Taxes:
Unremitted82468246
Delinquent2286383208
Total assets$9,750$12,732$165$22,317
Liabilities:
Due to other governments$9,750$12,567$ - $22,317
Hotel/Motel Tax
Assets:
Cash and investments($128)$35,012$35,013($129)
Receivables:
Accounts2,5512,5722,5512,572
Total assets$2,423$37,584$37,564$2,443
Liabilities:
Due to other governments$2,423$35,012$34,992$2,443
Totals
Assets:
Cash and investments$9,312$47,635$35,013$21,934
Receivables:
Accounts2,5512,5722,5512,572
Taxes:
Unremitted82468246
Delinquent2286383208
Total assets$12,173$50,316$37,729$24,760
Liabilities:
Due to other governments$12,173$47,579$34,992$24,760
139
CITY OF
FRIDLEY
140
Statistical Section (Unaudited)
This part of the City of Fridley's statistical's comprehensive annual financial report
presents detailed information as a context for understanding what the information in the
financial statements, note disclosures, and required supplementary information says
about the City's overall financial health.
ContentsPage
Financial Trends142
These schedules contain trend information to help the reader understand how the
City's financial performance and well-being have changed over time.
Revenue Capacity152
These schedules contain information to help the reader assess the factors
affecting the City's ability to generate its property tax.
Debt Capacity158
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 Information164
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 Information166
These schedules contain information about the City's operations and resources
to help the reader understand how the City's financial information relates to the
services the City provides and the activities it performs.
Sources:
Unless otherwise noted, the information in these schedules is derived
from the comprehensive annual financial reports for the relevant year. The City
implemented Statement 34 in 2003; the City has chosen to provide information for that
year forward. Ultimately, these schedules will contain information for the last ten years.
141
CITY OF FRIDLEY, MINNESOTA
NET ASSETS BY COMPONENT
(1)
Last nine fiscal years
(Accrual Basis of Accounting)
200320042005
Governmental activities:
Invested in capital assets, net of related debt$18,930,543$18,305,647$18,458,113
Restricted 2,395,446 1,664,772 1,540,531
Unrestricted 10,326,790 11,735,908 13,331,115
Total governmental activities net assets$31,652,779$31,706,327$33,329,759
Business-type activities:
Invested in capital assets, net of related debt$17,003,867$14,528,247$16,454,772
Restricted - - -
Unrestricted9,663,80711,814,6499,258,984
Total business-type activities net assets$26,667,674$26,342,896$25,713,756
Primary government:
Invested in capital assets, net of related debt$35,934,410$32,833,894$34,912,885
Restricted 2,395,446 1,664,772 1,540,531
Unrestricted 19,990,597 23,550,557 22,590,099
Total primary government net assets$58,320,453$58,049,223$59,043,515
(1)
The City implemented GASB Statement No. 34 for the fiscal year ended December 31, 2003.
Therefore, information for years prior to 2003 is not available.
142
Table 1
200620072008200920102011
$18,635,605$18,245,265$17,490,936$16,141,958$15,546,219$14,554,639
1,591,936 1,711,255 2,193,410 2,790,220 3,401,776 3,392,382
15,140,83117,244,49018,845,00620,276,25221,293,47023,020,467
$35,368,372$37,201,010$38,529,352$39,208,430$40,241,465$40,967,488
$17,354,621$16,951,085$16,381,443$15,036,932$15,105,503$14,342,934
- - - - - -
7,955,4267,722,4587,869,1858,308,0787,647,8487,387,634
$25,310,047$24,673,543$24,250,628$23,345,010$22,753,351$21,730,568
$35,990,226$35,196,350$33,872,379$31,178,890$30,651,722$28,897,573
1,591,936 1,711,255 2,193,410 2,790,220 3,401,776 3,392,382
23,096,25724,966,94826,714,19128,584,33028,941,31830,408,101
$60,678,419$61,874,553$62,779,980$62,553,440$62,994,816$62,698,056
143
CITY OF FRIDLEY, MINNESOTA
CHANGES IN NET ASSETS
(1)
Last nine fiscal years
(Accrual basis of accounting)
200320042005
Expenses
Governmental activities:
General government$3,944,682$3,513,065$4,448,175
Public safety5,166,9755,468,0145,514,330
Public works3,749,4123,612,3184,105,860
Community Development939,918602,335793,836
Parks, recreation and naturalist1,105,240993,570767,599
Interest on long-term debt605,639544,478443,533
Total governmental activities expenses15,511,86614,733,78016,073,333
Business-type activities:
Liquor5,010,6365,005,1984,919,458
Water2,030,6542,086,5132,070,032
Sanitary sewer3,419,1003,256,3713,570,113
Storm water359,189334,906320,596
Total business-type activities expenses10,819,57910,682,98810,880,199
Total primary government expenses$26,331,445$25,416,768$26,953,532
Program revenues
Programrevenues
Governmental activities:
Charges for services:
General government$1,301,146$1,032,130$1,263,265
Public safety$542,725$539,334$569,993
Public works$77,166$286,165$189,766
Community Development$411,300$441,649$599,870
Parks, recreation and naturalist$293,142$369,736$331,298
Operating grants and contributions1,481,7231,009,8611,121,726
Capital grants and contributions1,012,151882,2921,657,106
Total governmental activities program revenues5,119,3534,561,1675,733,024
Business-type activities:
Charges for services:
Liquor5,364,5885,376,4285,283,229
Water1,806,3581,763,6231,771,846
Sanitary sewer3,183,2603,248,9523,299,957
Storm water366,667381,360384,860
Operating grants and contributions37,976208600
Capital grants and contributions - - -
Total business-type activities program revenues10,758,84910,770,57110,740,492
Total primary government program revenues$15,878,202$15,331,738$16,473,516
144
Table 2
Page 1 of 2
200620072008200920102011
$4,177,829$4,074,480$3,646,436$3,324,698$3,272,470$3,321,402
6,023,3356,260,8066,774,6106,847,5716,756,6986,720,641
3,868,5174,208,7654,771,7485,065,1785,916,7765,023,080
1,118,661863,8501,479,4551,036,549966,909973,198
1,147,9661,312,5021,303,0631,605,3061,521,1061,387,133
397,036416,850377,884342,555268,892263,075
16,733,34417,137,25318,353,19618,221,85718,702,85117,688,529
4,793,4194,920,5114,937,7764,654,8114,542,1804,568,282
2,138,3712,279,0342,378,1012,423,1292,438,3992,688,846
3,629,3613,798,0534,065,8994,350,5764,617,9914,750,467
331,039381,944373,989399,349421,630785,861
10,892,19011,379,54211,755,76511,827,86512,020,20012,793,456
$27,625,534$28,516,795$30,108,961$30,049,722$30,723,051$30,481,985
1,443,361$1,468,699$1,600,769$1,733,160$1,755,123$1,886,783
609,721709,209759,892690,115717,003796,308
197,96849,39964,04223,03466,938378,142
470,733656,674510,908523,508501,897570,685
346,382381,432376,621347,044364,093325,682
1,304,510930,593818,805930,765939,1231,148,315
1,919,108834,7482,078,5721,476,9891,952,9341,374,651
6,291,7835,030,7546,209,6095,724,6156,297,1116,480,566
5,136,0295,252,9105,275,4674,973,0004,855,8804,893,436
1,929,5731,990,0472,110,6212,419,4002,390,8362,418,226
3,345,0173,461,6153,873,8063,784,0004,052,8004,245,654
391,032392,016404,562457,862421,815457,083
514 - - - - -
- - - - - -
10,802,16511,096,58811,664,45611,634,26211,721,33112,014,399
$17,093,948$16,127,342$17,874,065$17,358,877$18,018,442$18,494,965
145
CITY OF FRIDLEY, MINNESOTA
CHANGES IN NET ASSETS
Last nine fiscal years(1)
(Accrual basis of accounting)
200320042005
Net (expense) revenue:
Governmental activities($10,392,513)($10,172,613)($10,340,309)
Business-type activities(60,730)87,583(139,707)
Total primary government net (expense) revenue(10,453,243)(10,085,030)(10,480,016)
General revenues and other changes in net assets
Governmental activities:
General property taxes$5,273,363$5,816,656$7,428,226
Grants not restricted to programs3,751,5603,436,4733,365,739
Investment earnings423,215413,743511,464
Gain on sale of property10,468680434
Other - - -
Transfers - - -
Total governmental activities9,458,6069,667,55211,305,863
Business-type activities:
Investment earnings118,029146,248168,445
Gain on Sale of Property6,530 - -
Other6,502 - -
Transfers - - -
Total business-type activities131,061146,248168,445
Total primary government$9,589,667$9,813,800$11,474,308
Change in net assets:
Governmental activities($933,907)($505,061)$965,554
Business-type activities70,331233,83128,738
Total primary government($863,576)($271,230)$994,292
(1)
The City implemented GASB Statement No. 34 for the fiscal year ended Deember 31, 2003.
Therefore, information for years prior to 2003 is not available.
146
Table 2
Page 2 of 2
200620072008200920102011
($10,441,561)($12,106,499)($12,143,587)($12,497,242)($12,405,740)($11,207,963)
(90,025)(282,954)(91,309)(193,603)(298,869)(779,057)
(10,531,586)(12,389,453)(12,234,896)(12,690,845)(12,704,609)(11,987,020)
$8,253,653$8,986,924$9,068,718$9,175,888$10,141,119$10,126,395
2,623,4073,152,4213,240,0813,390,6332,718,9791,095,470
998,1541,111,116687,66596,817208,565347,184
3,35759,438(24,802)12,98220,11214,937
1,60329,238267 - - -
600,000600,000500,000500,000350,000350,000
12,480,17413,939,13713,471,92913,176,32013,438,77511,933,986
281,316245,172168,39425,90857,098106,274
5,0001,278 - (237,923)112 -
- - - - - -
(600,000)(600,000)(500,000)(500,000)(350,000)(350,000)
(313,684)(353,550)(331,606)(712,015)(292,790)(243,726)
$12,166,490$13,585,587$13,140,323$12,464,305$13,145,985$11,690,260
$2,038,613$1,832,638$1,328,342$679,078$1,033,035$726,023
(403,709)(636,504)(422,915)(905,618)(591,659)(1,022,783)
$1,634,904$1,196,134$905,427($226,540)$441,376($296,760)
147
Table 3
Page 1 of 2
CITY OF FRIDLEY, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS
(1)
Last Nine fiscal years
(Modified accrual basis of accounting)
2003200420052006
General Fund:
Reserved$43,502$83,822$81,662$77,476
Unreserved:
General fund4,338,4634,080,0124,020,2853,863,023
Designated for employee benefits - - - -
Designated for contingencies - - - -
Undesignated - - - -
Nonspendable
Unassigned
Total general fund$4,381,965$4,163,834$4,101,947$3,940,499
All other governmental funds:
Reserved for:
Long-term receivables$645,330$541,244$480,123$415,908
Public safety - 1,155,225688,214203,131
Debt service609,992509,547389,197721,866
Unreserved, reorted in:
p
Unreserved,reportedin:
Special revenue funds2,172,012541,7481,098,9951,106,623
Capital projects funds6,490,4287,001,3906,881,5236,963,524
Debt service5,505,8085,522,6475,976,8885,991,102
Restricted - - - -
Committed - - - -
Assigned - - - -
Unassigned - - - -
Total all other governmental funds$15,423,570$15,271,801$15,514,940$15,402,154
(1)
The City implemented GASB Statement No. 34 for the fiscal year ended Deember 31, 2003.
Therefore, information for years prior to 2003 is not available.
In 2011, the City adopted the provisions of Gorenmental Accounting Standards Board Statement
No. 54, Fund Balance Reporting and Governmental Fund Type Definitions.
148
Table 3
Page 2 of 2
20072008200920102011
$65,528$48,561$58,928$59,755$ -
5,206,7784,538,2244,600,9885,725,464 -
- - - - -
- - - - -
- - - - -
65,271
6,708,284
$5,272,306$4,586,785$4,659,916$5,785,219$6,773,555
$348,441$277,560$ -$ -$ -
20,72625,590 - - -
1,214,5191,564,2171,734,6242,066,732 -
1,189,1401,258,9261,329,6471,407,400 -
5,223,5635,944,5565,056,1485,796,931 -
6,201,3505,976,5115,801,6865,983,425 -
- - - -2,529,873
- - - -2,209,067
- - - -11,108,003
- - - -(98,164)
$14,197,739$15,047,360$13,922,105$15,254,488$15,748,779
149
CITY OF FRIDLEY, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
(1)
Last nine fiscal years
200320042005
Revenues:
General property taxes$5,305,289$5,809,631$7,397,381
Special assessments470,648300,389550,909
Licenses and permits722,541785,582865,848
Intergovernmental4,075,0233,207,4822,767,724
Charges for services1,500,4291,533,2531,736,181
Fines and forfeits216,368176,878164,104
Earnings on investments330,133325,307411,333
Interest on loan32,05629,25326,308
Other2,023,5442,085,0692,625,899
Total revenues 14,676,031 14,252,844 16,545,687
Expenditures:
Current:
General government3,569,9523,155,6174,244,496
Public safety4,925,5255,156,5295,204,551
Public works2,712,4212,608,3162,940,869
Communitu development934,151593,393671,173
Parks, recreation and naturalist1,068,875960,723737,094
Debt service:
Principal1,180,0005,155,0006,095,000
Interest 627,899561,045422,366
,,,
Bond issuance costs2,20132,96835,997
Capital outlay:1,705,270869,7703,112,700
Contingency - -907
Total expenditures 16,726,294 19,093,361 23,465,153
Revenues over (under) expenditures (2,050,263) (4,840,517) (6,919,466)
Other financing sources (uses):
Refunding bond issues -3,920,000 -
Bonds issued - -6,450,000
Premium/(discount) on bonds issue -(10,992)(7,160)
Proceeds from sale of capital assets - - -
Transfers in579,109558,609657,878
Transfers out - - -
Total other financing sources (uses) 579,109 4,467,617 7,100,718
Net change in fund balance($1,471,154)($372,900)$181,252
Debt service as a percentage of
noncapital expenditures12.1%31.5%32.2%
Debt service as percentage of total expenditures 10.8%30.1%27.9%
(1)
The City implemented GASB Statement No. 34 for the fiscal year ended December 31, 2003.
Therefore, information for years prior to 2003 is not available.
150
Table 4
200620072008200920102011
$8,220,943$8,927,963$9,052,719$9,072,267$10,178,369$10,113,120
691,764635,817589,790665,038622,100672,929
876,9031,080,787946,285965,363973,9851,085,100
2,663,9091,872,6432,742,9813,140,5533,310,6312,853,171
1,855,1771,830,4162,015,7962,021,7082,080,3492,206,764
261,535298,359316,646255,014240,880258,372
828,877920,850560,62974,840176,257297,290
23,21319,96216,5476,939 - -
2,154,6562,288,3092,220,2762,043,2521,992,971325,284
17,875,10617,576,977 18,461,669 18,244,974 19,575,542 17,812,030
3,567,5033,893,9523,338,2283,086,4413,010,8353,165,111
5,821,5235,999,5576,323,9106,446,7146,329,3546,284,658
2,944,9113,025,1573,406,4683,376,6413,111,9183,061,100
1,113,543861,8721,189,033895,057967,487979,042
1,118,3921,194,2901,366,1541,301,1401,292,7831,195,410
1,555,0001,825,0002,075,0002,215,0002,445,000800,000
330,431359,010379,340366,500287,961271,969
,,,,,,
31,74242,9869,1391,80145,0942,799
4,452,5003,114,2032,684,9382,144,6491,812,087964,410
- - - - -
20,935,54520,316,02720,772,21019,833,94319,302,51916,724,499
(3,358,568) (2,440,921) (2,310,541) (1,588,969) 273,023 1,087,531
- - - - - -
2,505,0001,910,0001,915,000 - 1,765,000 -
(30,720) - - - 53,163 -
10,05458,31313,10136,84516,50015,096
4,966,400600,0003,926,5632,500,4211,235,467380,000
(4,366,400) - (3,380,023)(2,000,421)(885,467) -
3,084,334 2,568,313 2,474,641 536,845 2,184,663 395,096
($274,234)$127,392$164,100($1,052,124)$2,457,686$1,482,627
11.6%12.9%13.6%14.6%15.9%6.6%
9.2%11.0%11.9%13.0%14.4%6.4%
151
CITY OF FRIDLEY, MINNESOTA
TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY
Last ten fiscal years
Commercial/
FiscalResidentialIndustrialPublicAll
YearPropertyPropertyUtilityOther
2002
Information Not Availiable
2003
2004$11,163,343$12,740,016$44,539$3,388,828
200512,619,94812,517,53246,5633,762,125
200614,320,78613,166,65746,8613,833,436
200715,074,00814,500,00846,9534,236,896
200815,334,12615,809,59442,7384,370,011
200914,716,96716,788,86038,6804,455,969
201013,494,27916,457,27537,3084,523,767
201112,175,45215,182,22741,2364,396,579
Source: Continuing Disclosure Document
152
Table 5
Less:
TotalFiscalAdjustedTotalEstimatedTax Capacity
TaxDisparityTax CapacityDirect TaxMarketas a Percent
CapacityContributionValueRateValueof EMV
$22,380,159$3,223,214$19,156,94529.906%$1,688,141,100116.83%
25,007,7893,579,12821,428,66128.616%1,958,021,100116.70%
27,336,7264,292,06123,044,66530.248%2,149,055,100118.62%
28,946,1684,624,09124,322,07733.565%2,278,619,300119.01%
31,367,7404,115,59527,252,14531.941%2,469,670,100115.10%
33,857,8654,587,79428,341,51431.349%2,616,727,300119.46%
35,556,4695,221,35530,303,83230.324%2,701,388,800117.33%
36,000,4765,757,07331,758,13328.640%2,698,943,700113.36%
34,512,6296,128,31830,862,68232.258%2,561,173,300111.83%
31,795,4946,212,40628,088,60536.986%2,352,567,900113.20%
153
CITY OF FRIDLEY MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES
Last ten fiscal years
SchoolSchoolSchool
FiscalDistrictDistrictDistrict
YearCityNo. 11No. 13No. 14
200229.906%29.082%38.614%17.855%
200328.616%26.941%20.303%29.966%
200430.248%21.050%22.833%22.683%
200533.565%21.492%19.993%21.606%
200631.941%20.046%19.571%20.830%
200731.349%19.353%17.183%24.175%
200830.324%16.983%15.942%26.033%
200928.640%18.263%23.411%31.172%
201032.258%19.939%24.398%38.795%
201140.420%24.023%18.596%40.631%
Source: Continuing Disclosure Document
Notes:
(1)
Vocational/Technical District #916 is included in District No. 16.
(2)
Six Cities Watershed District is included with School District No. 11.
(3)
Rice Creek Watershed District is included with School District No. 13, 14 and 16.
(4)
Stonybrook Creek Subwatershed is included with School District No. 11 and 14.
154
Table 6
SchoolTotalSchoolSchoolSchoolSchool
DistrictSpecialDistrictDistrictDistrictDistrict
(1)(2, 4)(3)(3, 4)(1, 3)
No. 16No. 11No. 13No. 14No. 16
CountyDistricts
25.985%37.976%7.528%105.313%115.198%94.439%102.639%
22.054%37.714%7.666%102.483%96.360%105.925%98.111%
21.421%35.221%7.623%95.446%97.758%97.525%96.346%
16.118%33.080%8.085%96.945%96.329%97.942%92.454%
17.437%32.096%7.411%92.136%92.813%94.072%90.679%
25.779%30.696%6.829%88.666%87.770%94.762%96.366%
26.213%31.078%7.803%86.608%87.135%97.226%97.406%
27.155%32.078%8.783%86.183%92.840%100.601%96.584%
31.654%35.189%9.089%94.964%100.897%115.294%108.153%
33.959%39.884%10.533%113.226%109.392%131.427%124.755%
155
Table 7
CITY OF FRIDLEY, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS
Current year and nine years ago
20112002
Percentage Percentage
Taxableof Total CityTaxableof Total City
CapacityCapacityCapacityCapacity
TaxpayerValueRankValueValueRankValue
Medtronic, Inc.$1,896,20215.96%$1,145,39015.12%
Target Corporation770,120 2 2.42%634,214 2 2.83%
Shamrock Investments599,366 3 1.89%552,788 3 2.47%
Cummins Power (Onan)393,100 41.24%364,578 4 1.63%
Retail Trust IV (Wal-Mart/Sam's)374,722 5 1.18%232,698 7 1.04%
BAE315,310 60.99%N/A10 0.00%
Maurice Fillister (Georgetown)259,648 7 0.82%244,404 6 1.09%
University Avenue Associates252,805 8 0.80%361,692 5 1.62%
Riverpointe Apartments199,002 90.63%211,890 9 0.95%
Lifetime Fitness139,250 10 0.44%222,468 8 0.99%
Total$5,199,52515.93%$3,970,12217.74%
Total All Property$31,795,494$22,380,159
Source: City Assessor
156
Table 8
CITY OF FRIDLEY, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last ten fiscal years
FiscalTaxesCollections
Collected Within The
YearLeviedFiscal Year of the LevyinTotal Collections to Date
EndedFor ThePercentageSubsequentPercentage
Dec. 31Fiscal YearAmountof LevyYearsAmountof Levy
20025,152,7775,023,37097.49%31,9955,055,36598.11%
20035,320,5175,257,38198.81%62,6655,320,04699.99%
20045,958,4175,784,43897.08%154,0195,938,45799.67%
20057,543,3827,394,30498.02%129,3037,523,60799.74%
20068,278,2558,130,76798.22%118,7068,249,47399.65%
20078,772,1498,614,53798.20%133,1778,747,71499.72%
20089,188,5928,958,98697.50%112,6939,071,67998.73%
20099,110,8478,856,38497.21%100,5838,956,96798.31%
20109,707,0759,503,50997.90%58,8019,562,31098.51%
201110,014,0719,897,61098.84%N/A9,897,61098.84%
Source: City Finance Department.
157
CITY OF FRIDLEY, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last ten fiscal years
Governmental Activities
Percentage
of EstimatedEstimated
FiscalImprovementTax IncrementEquipmentMarket ValueMarket Value
YearBondsBondsCertificatesTotalof Propertyof Property
2002465,00011,735,000 - 12,200,0000.72%1,688,141,100
2003315,00010,705,000 - 11,020,0000.56%1,958,021,100
2004190,0009,595,000 - 9,785,0000.46%2,149,055,100
20051,805,0008,335,000 - 10,140,0000.45%2,278,619,300
20064,310,0006,780,000 - 11,090,0000.45%2,469,670,100
20076,065,0005,110,000 - 11,175,0000.43%2,616,727,300
20087,615,0003,400,000 - 11,015,0000.41%2,701,388,800
20097,080,0001,720,000 - 8,800,0000.33%2,698,943,700
20107,570,000 - 550,0008,120,0000.32%2,561,173,300
20116,770,000 - 550,0007,320,0000.31%2,352,567,900
158
Table 9
Business Type Activities
Total
Sewer/WaterTotalPer PrimaryPer
PopulationBondsBusiness TypeCustomerGovernmentCapita
27,8773,170,0003,170,00038315,370,000438
27,4602,800,0002,800,00033813,820,000401
27,4805,405,0005,405,00065715,190,000356
27,0883,815,0003,815,00045813,955,000374
26,6793,420,0003,420,00041514,510,000416
26,6033,015,0003,015,00036614,190,000420
26,4596,440,0006,440,00078117,455,000416
26,4225,865,0005,865,00071214,665,000333
27,2088,160,0008,160,00099216,280,000298
27,3887,625,0007,625,00092714,945,000267
159
Table 10
CITY OF FRIDLEY, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2011
Estimated
EstimatedShare of
DebtPercentageOverlapping
Governmental UnitOutstandingApplicable*Debt
Debt repaid with property taxes:
Independent School District No. 11$143,252,9271.60%$2,292,047
Independent School District No. 1322,435,00031.46%7,058,051
Independent School District No. 1441,890,000100.00%41,890,000
Independent School District No. 16127,655,00036.80%46,977,040
Metro Council1,349,552,8461.19%16,059,679
Anoka County150,438,50618.04%27,139,106
Vocational/Technical District No. 9166,285,0002.21%138,899
Subtotal - overlapping debt141,554,822
City of Fridley - Direct debt$7,320,000100.00%7,320,000
Total direct and overlapping debt$148,874,822
160
Table 11
CITY OF FRIDLEY, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
Last ten fiscal years
Market Value$2,352,567,900
Debt Limit 3% of Market Value$70,577,037
Amount of Debt Applicable to Debt Limit:
Total Debt14,945,000
Deductions:
Improvement Bonds$6,770,000
Revenue Bonds7,625,00014,395,000
Total Amount of Debt Applicable to Debt Limit550,000
Legal Debt Margin$70,027,037
Legal Debt Margin Calculation for the last 10 Fiscal Years
Net DebtLegalAmount of Debt
FiscalDebtApplicable toDebtApplicable to
YearLimitLimitMarginDebt Limit
g
2002$33,380,154$ - $29,985,1620.00%
200338,755,912 - 33,380,1540.00%
200442,589,016 - 38,755,9120.00%
200545,168,942 - 42,589,0160.00%
200649,393,402 - 45,168,9420.00%
200752,334,546 - 49,393,4020.00%
200854,027,776 - 52,334,5460.00%
200980,968,311 - 54,027,7760.00%
201076,835,199550,00076,285,1990.72%
201170,577,037550,00070,027,0370.78%
Note: State statutes limit the amount of general obligation debt a Minnesota City may issue to 3% of total
estimated market value; prior to 2008, the State Statute debt limit was 2%.
161
CITY OF FRIDLEY, MINNESOTA
PLEDGED-REVENUE COVERAGE
Last ten fiscal years
Improvement BondsUtility Revenue Bonds
SpecialUtilityLess
FiscalAssessmentDebt ServiceServiceOperating
YearCollectionsPrincipalInterestCoverageRevenuesExpenses
2002$463,579$150,000$29,6082.58$5,016,233$5,251,371
2003449,867150,00021,6082.625,330,6035,664,739
2004273,81390,00010,3582.735,371,6625,430,082
2005542,548190,0005,3402.785,435,3615,821,541
2006671,204 - 67,4669.955,648,7205,977,607
2007602,988155,000160,4231.915,832,9046,350,572
2008561,221365,000230,3250.946,379,9846,631,304
2009658,406535,000270,0050.826,611,6116,951,906
2010555,997725,000252,8990.576,855,4417,236,513
2011504,053800,000258,1350.487,118,1547,952,911
162
Table 12
Utility Revenue BondsTax Increment Bonds
Net Tax
AvaliableIncrementDebt ServiceDebt Service
RevenuePrincipalInterestCoverageCollectionsPrincipalInterestCoverage
($235,138)$360,000$158,422-0.45$2,564,040$1,000,000$654,6641.55
(334,136)370,000141,002-0.653,624,9681,030,000606,2912.22
(58,420)390,000334,960-0.083,078,4265,065,000546,9100.55
(386,180)1,590,000139,200-0.223,224,2045,905,000417,0260.51
(328,887)395,000121,164-0.642,649,0201,555,000262,9651.46
(517,668)305,000108,351-1.253,586,0971,670,000199,4881.92
(251,320)300,000149,481-0.563,329,2891,710,000149,0151.79
(340,295)575,000221,449-0.432,016,5801,680,00096,4951.14
(381,072)515,000241,508-0.501,742,8161,720,00035,0630.99
(834,757)535,000272,264-1.0369,881 - 13,8345.05
163
Table 13
CITY OF FRIDLEY, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last ten fiscal years
Total Per Capita
FiscalUnemploymentPersonalPersonal
YearPopulationRateIncomeIncome
200227,8774.4%$789,588,14828,324
200327460,43%.622985020,,22687,
20032746043%62298502022687
200427,4804.8%691,644,12025,169
200527,0884.2%695,674,01625,682
200626,6794.2%703,978,77326,387
200726,6034.8%712,747,57626,792
200826,4595.7%708,889,52826,792
200926,4227.9%688,160,99026,045
201027,2087.3%744,138,80027,350
201127,3885.5%742,077,86027,095
Sources: Metropolitan Council (population), Continuing Disclosure Document (unemployment rate)
164
Table 14
CITY OF FRIDLEY, MINNESOTA
PRINCIPAL EMPLOYERS
Current year and nine years ago
2011201120022002
Percentage Percentage
of Total Cityof Total City
EmployerEmployeesRankEmploymentEmployeesRankEmployment
Medtronic, Inc.3,003118.51%2,763110.52%
1,700210.48%25.48%
Cummins Power (Onan)1,440
UnityMedicalCenter1037,3639%.4656177%.
UnityMedicalCenter10373639%4656177%
Target84245.19%38791.47%
BAE Systems63753.93%1,40135.34%
5176 3.19%42.44%
Minco Products640
Wal-Mart29471.81% - 0.00%
Kurt Manufacturing23381.44%35071.33%
Lofthouse Bakery2159 1.33%318101.21%
100100.62%81.52%
Parsons Electric400
Park Construction -0.00% - 0.00%
Burlington -0.00%65052.48%
Total8,57852.87%8,81433.57%
Total City Employment16,22526,257
Source: Continuing Disclosure Documents, Minnesota Department of Employment and Economic
Development and the Met Council.
165
CITY OF FRIDLEY, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last ten fiscal years
Full-Time Equivalent Employees as of December 31,
Function/Program2002200320042005
General government:
City Administration4433
Finance24242323
Human Resource2222
Community Development101088
Public safety:
Police department50504646
Fire department8988
Public works:
Administration5544
Engineering3322
Mechanic3333
Streets9999
Water6655
Sewer5555
Parks6777
Parks and recreation:
Recreation and Naturalist8958
Total143146130133
Source: City Finance Department
166
Table 15
Full-Time Equivalent Employees as of December 31,
200620072008200920102011
333333
232222191919
222222
1079777
474444454243
998888
422222
244443
333333
999999
555557
555555
777775
1188888
140130131127124124
167
CITY OF FRIDLEY, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last ten fiscal years
Fiscal Year
Function/Program2002200320042005
Police:
Physical arrests1,4471,3339561,205
Parking violations635532644884
Traffic violations2,2092,4292,1291,789
Fire:
Emergency responses2,5572,5492,4062,719
Fires occurred144124137107
Commercial Inspections1,0681,1261,1801,171
Rental Inspections359299471296
Refuse collection:
Recyclables collected (tons per day)6.756.706.706.69
Building inspection:
Permits issued:
Residential730642624750
Commercial52659986
Total permit valuation$11,619,328$16,078,198$22,029,469$25,057,537
Other public works:
Street resurfacing (miles)1.21.21.24.1
Water:
Connections8,2548,2798,2888,232
Storage capacity (gallons)6,500,0006,500,0006,500,0006,500,000
Average daily demand (gallons)550,000550,000646,000550,000
Peak daily demand (gallons)9,000,0009,000,00013,190,00010,000,000
Sewer:
Connections8,2638,2888,2978,250
Sources: Various City departments.
No operating indicators were available for the Parks, recreation and naturalist function.
168
Table 16
Fiscal Year
200620072008200920102011
1,2921,2901,3571,3051,3181,145
572792419382778665
5,1524,0354,9942,9342,9292,860
2,5682,8042,8272,8642,7722,923
127109116141116114
7844,5171,2391,021868890
2311,176755888597783
6.956.966.126.475.895.70
7681,2061,4441,5991,9052,232
115366418386434446
$21,750,596$47,871,624$39,105,158$45,564,657$30,441,199$39,902,641
4.83.74.14.94.92.2
8,2358,2308,2338,2318,2268,222
6,500,0006,500,0006,500,0006,500,0006,500,0006,500,000
550,0004,270,0004,270,0003,458,4823,014,4253,730,000
10,990,00010,990,00010,800,00019,350,8928,119,2076,622,000
8,2448,2388,2428,2388,2378,232
169
CITY OF FRIDLEY, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last ten fiscal years
Fiscal Year
Function/Program2002200320042005
Police:
Stations1111
Squad cars12121212
Fire stations3333
Other public works:
Streets (miles)125.3125.3125.3125.3
Highways (miles)10.310.310.310.3
Streetlights1,0541,0541,0541,055
Traffic signals35353535
Parks, recreation and naturalist:
Acreage682682682682
Playgrounds29292929
Baseball/softball diamonds22222222
Soccer/football fields2222
Community centers1111
Water:
Water mains (miles)112.9112.9112.9112.9
Fire hydrants9989989981,012
Storage capacity (gallons)6.5 million6.5 million6.5 million6.5 million
Wastewater:
Sanitary sewers (miles)103.0103.0103.0103.0
Storm sewers (miles)49.349.349.350.0
Sources: Various City departments.
170
Table 17
Fiscal Year
200620072008200920102011
111111
121212121212
333333
125.3125.3125.3125.3125.3125.3
10.310.310.310.310.310.3
1,0551,0591,0591,0591,0591,059
363636363636
682682682682682682
292929292929
222222222222
222222
111111
113.0113.0113.0113.0113.0113.0
1,0131,0131,0131,0131,0131,013
6.5 million6.5 million6.5 million6.5 million6.5 million6.5 million
103.0103.0103.0103.0103.0103.0
52.052.052.052.052.052.0
171
CITY OF
FRIDLEY
172