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2009 CAFR CITY OF FRIDLEY, MINNESOTA Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2009 Prepared by: Finance Department Richard D. Pribyl Finance Director CITY OF FRIDLEY CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2009 TABLE OF CONTENTS EXHIBITPAGE I. INTRODUCTORY SECTION Letter of Transmittal3 Elected and Appointed Officials5 City Administrative Organizational Structure 20096 II. FINANCIAL SECTION Independent Auditor's Report11 Management's Discussion and Analysis13 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net AssetsA-125 Statement of ActivitiesA-226 Fund Financial Statements: Balance Sheet - Governmental FundsA-328 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental FundsA-430 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of ActivitiesA-533 Statement of Net Assets - Proprietary FundsA-634 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary FundsA-736 Statement of Cash Flows - Proprietary FundsA-838 Statement of Fiduciary Net AssetsA-940 Notes to Financial Statements41 Required Supplementary Information: Budgetary Comparison Schedule - General FundB-178 Budgetary Comparison Schedule - Grant Management FundB-282 Budgetary Comparison Schedule - Note to RSI83 Schedule of Funding Progress - Retiree Health Plan84 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, 2009 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: Comparative Balance SheetD-5102 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and ActualD-6103 Drug and Gambling Forfeiture Fund: Comparative Balance SheetD-7104 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and ActualD-8105 F. C. C. Donations Fund: Comparative Balance SheetD-9106 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and ActualD-10107 Police Activity Fund: Comparative Balance SheetD-11108 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and ActualD-12109 Springbrook Nature Center Fund: Comparative Balance SheetD-13110 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and ActualD-14111 Capital Project Fund: Capital Improvement Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and ActualE-1114 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2009 TABLE OF CONTENTS EXHIBITPAGE Internal Service Funds: Combining Statement of Net AssetsF-1116 Combining Statement of Revenues, Expenses and Changes in Net AssetsF-2117 Combining Statement of Cash FlowsF-3118 Employee Benefits Fund: Comparative Statement of Net AssetsF-4119 Comparative Statement of Revenues, Expenses and Changes in Net AssetsF-5120 Comparative Statement of Cash FlowsF-6121 Self Insurance Fund: Comparative Statement of Net AssetsF-7122 Comparative Statement of Revenues, Expenses and Changes in Net AssetsF-8123 Comparative Statement of Cash FlowsF-9124 Information Systems Fund: Comparative Statement of Net AssetsF-10125 Comparative Statement of Revenues, Expenses and Changes in Net AssetsF-11126 Comparative Statement of Cash FlowsF-12127 Housing and Redevelopment Authority (Component Unit): Balance Sheet - Governmental FundsG-1130 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental FundsG-2132 Subcombining Balance Sheet - Nonmajor Capital Project FundsG-3134 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Capital Project FundsG-4136 Agency Funds: Statement of Changes in Assets and LiabilitiesH-1140 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2009 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 ELECTED AND APPOINTED OFFICIALS DECEMBER 31, 2009 ELECTED OFFICIALS Term of Office Expires December MayorScott J.Lund2012 Councilmember At LargeRobert L. Barnette2012 Councilmember, Ward IJames T. Saefke2010 Councilmember, Ward IIDolores M. Varichak2010 Councilmember, Ward IIIAnn R. Bolkcom 2010 APPOINTED OFFICIALS City ManagerWilliam W. Burns City AttorneyFrederic W. Knaak Prosecuting AttorneyCarl J. Newquist City ClerkDebra A. Skogen Department Heads: Finance Director/TreasurerRichard D. Pribyl 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 5 CITY ADMINISTRATIVE ORGANIZATIONAL STRUCTURE 2009 City of Fridley Authorized Full-Time "40 Hours A Week" General Fund Positions - 108 (A) CITY MANAGEMENT (3) City Manager Admin Assistant to the City Manager Non-General Fund CABLE TV FUND Cable Administrator FINANCE (22)POLICE (46)FIRE (9) Public Safety DirectorFire Chief Finance Director - Treasurer Administrative AssistantAdministrative AssistantAdministrative Assistant (2) AccountantsAssistant Chief PATROL OPERATIONS (27) Fire Marshal ACCOUNTING (4)Captain(3) Captains Assistant Finance Director (4) Sergeants Payroll Coordinator(22) Patrol Officers RENTAL INSPECTIONS (2) Accounting Specialist Acctg-Data Processing Clerk Rental Inspection Asst. TECHNICAL SUPPORT (16) Full-time Firefighter ASSESSING (2)Captain City Assessor Lieutenant HUMAN RESOURCES (2) Appraiser(3) Detectives Pawn Detective MIS (2)Human Resources Director (2) School Resource Officers IT Manager Anoka-Henn DTF SergeantAdministrative Assistant PC TechnicianCrime/Rental Housing Sergeant Crime/Rental Housing Officer CITY CLERK - RECORDS (2) Special Projects Coordinator City Clerk Crime Prevention Specialist Licensing & Records TechnicianOffice Supervisor (2) Police Technicians (Also 3 at 32 hrs/week) Non-General FundNon-General Fund LIQUOR (6)DEA Task Force (1) Liquor Operations Manager Drug Task Force Investigator Assistant Manager (4) Lead Liquor Store Clerks WATER ADMIN (2) Utility Billing Clerk Acctg-Data Processing Clerk 6 CITY ADMINISTRATIVE ORGANIZATIONAL STRUCTURE 2009 City of Fridley PUBLIC WORKS (35)PARKS &COMMUNITY RECREATION (8)DEVELOPMENT (9) Public Works Director Parks & Recreation DirectorCommunity Development Administrative Assistant 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 Non-General FundBuilding Inspector PW MAINTENANCE (20)SPRINGBROOK NATURE Permit Technician CENTER (3) Administrative Assistant Nature Center DirectorPLANNING Fleet Services SupervisorPlanning Manager Program Supervisor (2) MechanicProgram Admin Assist Street Supervisor Non-General Fund SOLID WASTE (8) Public Service Worker Environmental Planner Parks Supervisor SECTION 8 HOUSING (6) Public Service Worker Coordinator (.75 FTE) Non-General Fund WATER (5)HRA Water Supervisor Assistant Executive Director (4) Public Service Worker SEWER (5) Sewer Supervisor (4) Public Service Worker 7 CITY OF FRIDLEY 8 II. FINANCIAL SECTION 9 CITY OF FRIDLEY 10 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, 2009. 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 and 4 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 $62,553,440 (Net assets). Of this amount, $27,740,348 (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 2009, the City’s total net assets decreased by $226,540. As of the close of the current fiscal year, the City of Fridley’s governmental funds reported combined ending fund balances of $18,582,021. Of this total amount, $12,311,775, or 66% is designated or reserved through legal restrictions and City Council authorization. At the end of the current fiscal year the general fund balance of $4,659,916, included $58,928 reserved and $4,600,988 designated. The City’s total debt decreased by $2,766,654 during the current fiscal year, it went from $18,404,385 to $15,637,731. 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. 13 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 25 through 27 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. 14 Managements Discussion and Analysis ’ The City of Fridley maintains six individual major governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, grant management fund, special assessment debt service fund, tax increment 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 28 through 31 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 34 through 39 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. 15 Managements Discussion and Analysis ’ The basic fiduciary fund financial statement can be found on page 40 of this report. Notes to the financial statements . The notes provide additional information that is essential to a full understanding of the data provided in the government–wide and fund financial statements. The notes to the financial statements can be found on pages 41 through 76 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 $62,553,440at the close of the most recent fiscal year. The largest portion of the City of Fridley's net assets ($32,022,872 or 51 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 200820092008200920082009 Current and other assets$27,267,273$25,637,464$11,227,712$8,928,704$38,494,985$34,566,168 Capital assets25,105,93624,941,95820,376,49120,899,12345,482,42745,841,081 Total assets$52,373,209$50,579,422$31,604,203$29,827,827$83,977,412$80,407,249 Long-term liabilities outstanding$9,018,580$6,869,604$5,861,623$5,386,088$14,880,203$12,255,692 Other liabilities4,825,2774,501,3881,491,9521,096,7296,317,2295,598,117 Total liabilities$13,843,857$11,370,992$7,353,575$6,482,817$21,197,432$17,853,809 Net assets: Invested in capital assets, net of related debt$17,490,936$16,141,958$13,939,868$15,880,914$31,430,804$32,022,872 Restricted2,193,4102,790,220 - - 2,193,4102,790,220 Unrestricted18,845,00620,276,25210,310,7607,464,09629,155,76627,740,348 Total net assets$38,529,352$39,208,430$24,250,628$23,345,010$62,779,980$62,553,440 16 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 ($27,740,348) 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 $679,078. Capital grants and contributions decreased by $601,583 due to the decrease in street construction activity. Investment earnings decreased by $590,848 because of lower interest rates, and Community development expenses decreased by $442,906 because of lower costs associated with the Northstar Commuter Rail Project. City of Fridley's Changes in Net Assets Governmental ActivitiesBusiness-Type ActivitiesTotals 200820092008200920082009 Revenues: Program revenues: Charges for services$3,312,232$3,316,861$11,664,456$11,634,262$14,976,688$14,951,123 Operating grants and contributions818,805930,765 - - 818,805930,765 Capital grants and contributions2,078,5721,476,989 - - 2,078,5721,476,989 General revenues: - - Property taxes9,068,7189,175,888 - - 9,068,7189,175,888 Grants and contributions not restricted to specific programs3,240,0813,390,633 - - 3,240,0813,390,633 Unrestricted investment earnings687,66596,817168,39425,908856,059122,725 Gain (loss) on sale of property(24,802)12,982 - (237,923)(24,802)(224,941) Other267 - - - 267 - Total revenues19,181,53818,400,93511,832,85011,422,24731,014,38829,823,182 Expenses: General government3,646,4363,324,698 - - 3,646,4363,324,698 Public safety6,774,6106,847,571 - - 6,774,6106,847,571 Public works4,771,7485,065,178 - - 4,771,7485,065,178 Community development1,479,4551,036,549 - - 1,479,4551,036,549 Recreation and naturalist1,303,0631,605,306 - - 1,303,0631,605,306 Interest on long-term debt377,884342,555 - - 377,884342,555 Liquor - - 4,937,7764,654,8114,937,7764,654,811 Water - - 2,378,1012,423,1292,378,1012,423,129 Sewer - - 4,065,8994,350,5764,065,8994,350,576 Storm water - - 373,989399,349373,989399,349 Total expenses 18,353,19618,221,85711,755,76511,827,86530,108,96130,049,722 Increase (decrease) in net assets before transfers828,342179,07877,085(405,618)905,427(226,540) Transfers500,000500,000(500,000)(500,000) - - Increase in net assets1,328,342679,078(422,915)(905,618)905,427(226,540) Net assets - January 137,201,01038,529,35224,673,54324,250,62861,874,55362,779,980 Net assets - December 31$38,529,352$39,208,430$24,250,628$23,345,010$62,779,980$62,553,440 17 Managements Discussion and Analysis ’ Below are specific graphs which provide comparisons of the governmental activities revenues and expenses: Governmental Activities -Revenues Unrestricted investment earnings Charges for services Grants and contributions not restricted to 1% specific programs 18% 18% Gain on Operating grants and sale of contributions 0% property 5% Capital grants and 8% contributions 50% Property taxes Governmental Activities -Expenses Interest on Recreation long-term debt and naturalist Community General government 2% 9% Developement 18% 6% Public works 28% 37% Public safety 18 Managements Discussion and Analysis ’ Business-Type Activities Business-type activities decreased net assets by $905,618. Charges for utility services ($6,661,262) did not keep up with expenses for the utilities ($7,173,054). This is because minimum charges for utilities was ended and replaced by a base charge and sewer charges from the Metropolitan Council Environmental Services was higher than expected: Business-Type Activities -Revenues Unrestricted investment earnings 0% 100% Charges for services Business-Type Activities -Expenses Loss on sale of property Storm water 2% 3% Water 20% Liquor 39% ` 36% Sewer 19 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, unreserved 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 $18,582,021. Approximately 90 percent of this amount ($16,788,469) constitutes unreserved fund balance. The remainder of the fund balance ($1,793,552) is reserved because it has already been committed 1) to provide for inventory ($58,928) and 2) to pay debt service ($1,734,624). The General Fund’s fund balance increased by $73,131 in 2009. This was much better than the $851,081 decrease originally budgeted for.The key reason for this improvement is the budget cutting that took place once the cuts in state aid payments were known. The Special Assessment Debt Service Fund’s fund balance decreased by $281,978 in 2009. This was due to an increase in the transfer out to the General Fund. The Capital Improvements Fund’s fund balance decreased by $1,324,612 in 2009. This was due to an increase in the transfer out to fund street projects. 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 $1,008,762, water $9,160,192, sewer $7,552,138 and storm water $5,623,918. The liquor, water, and sewer funds had decreases in net assets of $181,550, $234,080, and $551,509 respectively, while the storm water fund had an increase in net assets of $61,521. Budgetary Highlights General Fund The original budget was amended to move $361,640 in state aid credits from taxes to intergovernmental revenue. The budget for election expenditures was increased by $10,295 to fund a special election for a Charter amendment that was held in 2009. The original budget for contingency was decreased by $45,744 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 $648,685. Significant variances include the Legal department which expended $61,281 less than anticipated, the 20 Managements Discussion and Analysis ’ Accounting department which expended $71,333 less than anticipated, the Rental Inspections department which expended $51,387 less than anticipated and the Parks and Recreation department which expended $97,606 less than anticipated. 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, 2009, amounts to $45,841,080 (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 200820092008200920082009 Land$2,841,516$2,841,516$306,477$306,477$3,147,993$3,147,993 Buildings and structures 2,566,304 2,310,433 1,818,220 1,731,584 4,384,524 4,042,017 Improvements other than buildings 1,113,549 2,225,569 5,430,967 7,390,976 6,544,516 9,616,545 Machinery and equipment 2,121,761 2,020,247 570,883 641,568 2,692,644 2,661,815 Infrastructure 16,325,500 15,480,741 11,232,533 10,711,641 27,558,03326,192,382 Construction in progress 137,306 63,452 1,017,411 116,877 1,154,717 180,329 Total Capital Assets$25,105,936$24,941,958$20,376,491$20,899,123$45,482,427$45,841,081 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 $14,655,000, a decrease of $2,790,000 from 2008. $7,080,000 of this is for general obligation improvement debt which is supported by special assessments and a property tax levy, an additional $7,720,000 is for general obligation tax increment debt which financed the City’s housing and redevelopment program, and $8,865,000 is general obligation utility revenue bonds which financed utility improvements. In 2009 the City issued no bonded debt. In addition, there is long-term debt in the amount of $975,540 for compensated absences. Additional information on the City of Fridley’s long-term debt can be found in Note 5. 21 Managements Discussion and Analysis ’ City of Fridley’s Outstanding Debt General Obligation Improvement Bonds, General Obligation Tax Increment Bonds, General Obligation Revenue Bonds, and Compensated Absences (excluding bond discounts) are as follows: Governmental ActivitiesBusiness-Type ActivitiesTotals 200820092008200920082009 General Obligation Improvement Bonds7,615,000$ $ 7,080,000$ -$ -$ 7,615,000$ 7,080,000 General Obligation Tax Increment Bonds3,400,000 1,720,000 - - 3,400,000 1,720,000 General Obligation Revenue Bonds - - 6,440,000 5,865,000 6,440,000 5,865,000 Compensated Absences 952,762 975,540 - - 952,762 975,540 Total$ 11,967,762$ 9,775,540$ 6,440,000$ 5,865,000$ 18,407,762$ 15,640,540 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 $80,968,311. None of the City's outstanding debt is counted within the statutory limitation. 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. 22 BASIC FINANCIAL STATEMENTS 23 CITY OF FRIDLEY 24 Exhibit A-1 CITY OF FRIDLEY, MINNESOTA STATEMENT OF NET ASSETS December 31, 2009 Component Unit Primary GovernmentHousing & Redevelopment GovernmentalBusiness-TypeTotalsAuthority ActivitiesActivities2009200820092008 Assets: Cash and investments$22,414,781$5,060,206$27,474,987$29,574,670$11,661,595$13,337,736 Restricted cash and investments - 843,982843,9822,441,575 - - Receivables: Accounts205,0202,100,8712,305,8912,368,38943,11735,826 Taxes421,748 - 421,748291,52397,852163,326 Special assessments2,117,20113,0572,130,2582,117,543 - - Mortgage - - - - 1,168,6291,081,853 Interest55,083 - 55,083 - 10,9895,780 Loan from component unit - - - 277,560 - - Due from component unit188,149 - 188,14956,932 - - Due from other governments176,55451,731228,285439,994 - 107,860 Due from primary government - - - - - 535,000 Prepaid items - 287,126287,126264,6183,6382,410 Inventories - at cost58,928571,731630,659662,181 - - Land held for resale - - - - 3,861,1564,926,000 Capital assets (net of accumulated depreciation): Land2,841,516306,4773,147,9933,147,9932,023,5112,023,511 Buildings and structures2,310,4331,731,5844,042,0174,384,524 - - Improvements other than buildings2,225,5697,390,9769,616,5456,544,516 - - Machinery and equipment2,020,247641,5682,661,8152,692,644 - - Infrastructure15,480,74110,711,64126,192,38227,558,033 - - Construction in progress63,452116,877180,3291,154,717 - - Total assets50,579,42229,827,82780,407,24983,977,41218,870,48722,219,302 Liabilities: Due to primary government - - - - 188,14956,932 Accounts payable196,245220,803417,048502,740389,7481,233,963 Deposits payable 52,511 - 52,51153,311 - - Contracts payable159,91858,897218,815470,624 - - Due to other governments33,751153,476187,227106,3518,4178,918 Due to component unit - - - 535,000 - - Salaries payable540,32356,471596,794517,318 - - Accrued interest payable139,83592,082231,917257,082 - - Compensated absences payable: Due within one year775,962 - 775,962734,182 - - Due in more than one year199,578 - 199,578218,580 - - Other post employment benefits payable: Due in more than one year315,02638,897353,923213,167 - - Unearned revenue157,843 - 157,843137,454 - - Loan payable to primary government: Due within one year - - - - - 74,470 Due in more than one year - - - - - 203,090 Bonds payable: Due within one year2,445,000515,0002,960,0002,790,000 - - Due in more than one year6,355,0005,347,19111,702,19114,661,623 - - Total liabilities11,370,9926,482,81717,853,80921,197,432586,3141,577,373 Net assets: Invested in capital assets, net of related debt16,141,95815,880,91432,022,87233,872,3792,023,5112,023,511 Restricted for: Debt service2,761,978 - 2,761,9782,167,820 - - Public safety28,242 - 28,24225,590 - - Tax increment purposes - - - - 1,720,0001,727,950 Unrestricted20,276,2527,464,09627,740,34826,714,19114,540,66216,890,468 Total net assets$39,208,430$23,345,010$62,553,440$62,779,980$18,284,173$20,641,929 The accompanying notes are an integral part of these financial statements. 25 CITY OF FRIDLEY, MINNESOTA STATEMENT OF ACTIVITIES For The Year Ended December 31, 2009 Program Revenues Operating Charges ForGrants and ExpensesServicesContributions Functions/Programs Primary government: Governmental activities: General government$3,324,698$1,733,160$63,700 Public safety6,847,571690,115519,662 Public works5,065,17823,034211,502 Community development1,036,549523,50890,301 Parks, recreation and naturalist1,605,306347,04445,600 Interest on long-term debt342,555 - - Total governmental activities18,221,8573,316,861930,765 Business-type activities: Liquor4,654,8114,973,000 - Water2,423,1292,419,400 - Sewer4,350,5763,784,000 - Storm water399,349457,862 - Total business-type activities11,827,86511,634,2620 Total primary government$30,049,722$14,951,123$930,765 Component unit: Housing and Redevelopment Authority$4,980,293$13,350$ - Total component unit$4,980,293$13,350$0 General revenues: Property taxes Tax increment collections Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain (loss) 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. 26 Exhibit A-2 Net (Expense) Revenue and Changes in Net AssetsComponent Unit Primary GovernmentHousing & Redevelopment Capital TotalsAuthority Grants andGovernmentalBusiness-Type ContributionsActivitiesActivities2009200820092008 $ - ($1,527,838)$ - ($1,527,838)($2,034,897)$ - $ - - (5,637,794) - (5,637,794)(5,562,856) - - 1,471,080(3,359,562) - (3,359,562)(2,414,253) - - - (422,740) - (422,740)(852,376) - - 5,909(1,206,753) - (1,206,753)(901,321) - - - (342,555) - (342,555)(377,884) - - 1,476,989(12,497,242)0(12,497,242)(12,143,587)00 - - 318,189318,189337,691 - - - - (3,729)(3,729)(267,480) - - - - (566,576)(566,576)(192,093) - - - - 58,51358,51330,573 - - 00(193,603)(193,603)(91,309)00 $1,476,989(12,497,242)(193,603)(12,690,845)(12,234,896)$0$0 $ -($4,966,943)($3,236,635) $0(4,966,943)(3,236,635) 9,175,888 - 9,175,8889,068,718471,474368,628 - - - - 1,952,8673,322,504 3,390,633 - 3,390,6333,240,08151,90446,959 96,81725,908122,725856,05968,301556,893 12,982(237,923)(224,941)(24,802)43,11771,891 - - - 26721,52432,785 500,000(500,000) - - - 13,176,320(712,015)12,464,30513,140,3232,609,1874,399,660 679,078(905,618)(226,540)905,427(2,357,756)1,163,025 38,529,35224,250,62862,779,98061,874,55320,641,92919,478,904 $39,208,430$23,345,010$62,553,440$62,779,980$18,284,173$20,641,929 The accompanying notes are an integral part of these financial statements. 27 CITY OF FRIDLEY, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2009 Special GrantAssessment General FundManagementDebt Service Assets Cash and investments$4,674,806$139,217$7,529,464 Receivables: Accounts89,020 - - Taxes380,704 -25,532 Special assessments71,978 - 1,947,085 Interest55,083 - - Loan receivable from component unit - - - Due from other funds142,035 - - Due from component unit147,801 - - Due from other governments43,01733,043 - Inventories, at cost58,928 - - Total assets$5,663,372$172,260$9,502,081 Liabilities and Fund Balances Liabilities: Accounts payable$122,194$9,253$ - Deposits payable52,511 - - Contracts payable3,425 - - Due to other governments28,282763 - Due to component unit - - - Due to other funds - - - Salaries payable431,8004,402 - Deferred revenue365,244157,8421,965,771 Total liabilities1,003,456172,2601,965,771 Fund balances: Reserved for: Inventory58,928 - - Long-term receivables - - - Public safety - - - Debt service - - 1,734,624 Unreserved: Designated reported in: General Fund4,600,988 - - Special Revenue Funds - - - Capital Project Funds - - - Undesignated reported in: Special Revenue Funds - - - Debt Service Funds - - 5,801,686 Capital Project Funds - - - Total fund balances4,659,91607,536,310 Total liabilities and fund balances$5,663,372$172,260$9,502,081 The accompanying notes are an integral part of these financial statements. 28 Exhibit A-3 Special AssessmentOther Tax Increment ConstructionCapitalGovernmentalIntra-Activity Debt ServiceCapital ProjectsImprovementsFundsEliminationsTotals Governmental Funds 20092008 $ - $647,552$4,551,044$1,300,624$ - $18,842,707$19,758,152 -8,963 - 107,037 - 205,020181,790 - - 3,81611,696 - 421,748291,521 -98,138 - - - 2,117,2012,102,621 - - - - - 55,083 - - - - - - - 277,560 - - - - (142,035) - - - - - 40,117 - 187,91856,663 - - 9,00091,494 - 176,554434,311 - - - - - 58,92848,561 $0$754,653$4,563,860$1,550,968($142,035)$22,065,159$23,151,179 $ - $ - $ - $52,432$ - $183,879$218,961 - - - - - 52,51153,311 - 155,767726 - - 159,91871,404 -3,946 -624 -33,61535,367 - - - - - - 300,000 - - - 142,035(142,035) - - - - - 17,053 - 453,255374,666 -98,1383,7889,177 - 2,599,9602,463,325 0257,8514,514221,321(142,035)3,483,1383,517,034 - - - - - 58,92848,561 - - - - - - 277,560 - - - - - - 25,590 - - - - - 1,734,6241,564,217 - - - - - 4,600,9884,538,224 - - - 1,357,889 - 1,357,8891,258,926 - - 4,559,346 - - 4,559,3465,883,958 - - - (28,242) - (28,242) - - - - - - 5,801,6865,976,511 - 496,802 - - - 496,80260,598 0496,8024,559,3461,329,647018,582,02119,634,145 $0$754,653$4,563,860$1,550,968($142,035)$22,065,159$23,151,179 Fund balance reported above$18,582,021$19,634,145 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.24,661,30424,891,224 Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds.2,442,1172,325,871 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds.(9,254,861)(11,369,680) 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.2,777,8493,047,792 Net assets of governmental activities$39,208,430$38,529,352 The accompanying notes are an integral part of these financial statements. 29 CITY OF FRIDLEY, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For The Year Ended December 31, 2009 Special GrantAssessment ManagementDebt Service General Fund Revenues: Taxes$8,113,080$ - $658,406 Special assessments51,675 -608,216 Licenses and permits741,043 - - Intergovernmental revenue2,032,936164,93330,077 Charges for services1,674,477 - - Fines and forfeits217,464 - - Investment income18,501 -29,611 Interest on loan - - 6,939 Miscellaneous: Other155,88248 - Received from component unit - - - Total revenues13,005,058164,9811,333,249 Expenditures: Current: General government2,457,584 - - Public safety6,347,689 - - Public works3,079,097 - - Community development730,076164,981 - Parks, recreation and naturalist832,517 - - Debt service - - 806,806 Capital outlay271,809 - - Total expenditures13,718,772164,981806,806 Excess (deficiency) of revenues over (under) expenditures(713,714)0526,443 Other financing sources (uses): Bonds issued - - - Proceeds from sale of capital assets36,845 - - Transfers in750,000 - - Transfers out - - (808,421) Total other financing sources (uses)786,8450(808,421) Net change in fund balance73,1310(281,978) Fund balance - January 14,586,785 - 7,818,288 Fund balance - December 31$4,659,916$0$7,536,310 The accompanying notes are an integral part of these financial statements. 30 Exhibit A-4 Special AssessmentOther Tax Increment ConstructionCapitalGovernmentalIntra-Activity Debt ServiceCapital ProjectsImprovementsFundsEliminations Totals Governmental Funds 20092008 $ - $ - $1,053$299,728$ - $9,072,267$9,052,719 -5,147 - - - 665,038589,790 - - - 224,320 - 965,363946,285 - 784,41714,909113,281 - 3,140,5532,742,981 -3,580 - 343,651 - 2,021,7082,015,796 - - - 37,550 - 255,014316,646 -33821,6204,770 - 74,840560,629 - - - - - 6,93916,547 - - 1,500109,327 - 266,757360,811 1,776,495 - - - - 1,776,4951,859,465 1,776,495793,48239,0821,132,627018,244,97418,461,669 -18,14916,017594,692 - 3,086,4423,338,228 - - - 99,023 - 6,446,7126,323,910 - 297,545 - - - 3,376,6423,406,468 - - - - - 895,0571,189,033 - - 86,197382,426 - 1,301,1401,366,154 1,776,495 - - - - 2,583,3012,463,479 - 1,758,03369,48045,327 - 2,144,6492,684,938 1,776,4952,073,727171,6941,121,468019,833,94320,772,210 0(1,280,245)(132,612)11,1590(1,588,969)(2,310,541) - - - - - - 1,915,000 - - - - - 36,84513,101 - 1,716,449 - 33,972(2,000,421)500,000546,540 - - (1,192,000) - 2,000,421 - - 01,716,449(1,192,000)33,9720536,8452,474,641 0436,204(1,324,612)45,1310(1,052,124)164,100 -60,5985,883,9581,284,516 - 19,634,14519,470,045 $0$496,802$4,559,346$1,329,647$0$18,582,021$19,634,145 The accompanying notes are an integral part of these financial statements. 31 CITY OF FRIDLEY 32 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, 2009 20092008 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)($1,052,124)$164,100 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.(229,920)835,660 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.116,246346,825 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.2,215,000160,000 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.(269,943)261 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.(125,927)(189,099) 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.25,74610,595 Change in net assets of governmental activities (Exhibit A-2)$679,078$1,328,342 The accompanying notes are an integral part of these financial statements. 33 CITY OF FRIDLEY, MINNESOTA STATEMENT OF NET ASSETS PROPRIETARY FUNDS December 31, 2009 Business-Type Activities - Enterprise Funds Assets:LiquorWater Current assets: Cash and cash equivalents$270,589$1,924,311 Restricted cash and cash equivalents -843,982 Accounts receivable -994,150 Taxes receivable: Delinquent - - Special assessments receivable -6,354 Due from component units - - Due from other governments - - Inventories, at cost556,45915,272 Prepaid items - - Total current assets827,0483,784,069 Noncurrent assets: Capital assets: Land151,946154,531 Buildings and structures130,2113,124,015 Improvements other than buildings650,2458,535,081 Machinery and equipment208,9301,536,341 Infrastructure -8,853,416 Construction in progress - - Total capital assets1,141,33222,203,384 Less: Allowance for depreciation(715,176)(10,705,080) Net capital assets426,15611,498,304 Total noncurrent assets426,15611,498,304 Total assets1,253,20415,282,373 Liabilities: Current liabilities: Accounts payable166,30050,844 Accrued interest payable -92,082 Contracts payable -51,346 Due to other governments48,10728,361 Salaries payable18,93921,224 Payroll deductions payable - - Compensated absences payable - - Bonds payable - current -515,000 Total current liabilities233,346758,857 Noncurrent liabilities: Other post employment benefits11,09616,133 Compensated absences - noncurrent - - Bonds payable - noncurrent -5,347,191 Total noncurrent liabilities11,0965,363,324 Total liabilities244,4426,122,181 Net assets: Invested in capital assets, net of related debt426,1566,480,095 Unrestricted582,6062,680,097 Total net assets$1,008,762$9,160,192 The accompanying notes are an integral part of these financial statements. 34 Exhibit A-6 Governmental Activities - Business-Type Activities - Enterprise Funds Internal Service Funds SewerStorm WaterTotals 20092008 $2,127,646$737,660$5,060,206$5,935,693$3,572,074 - -843,9822,441,575 - 998,747107,9742,100,8711,951,599 - - - -2 - -6,70313,05714,922 - - - - -231 3,33048,40151,7315,683 - - -571,731613,620 - 287,126 -287,126264,618 - 3,416,849 900,738 8,928,704 11,227,712 3,572,305 - -306,477306,477 - 8,770 -3,262,9963,262,996 - 2,407,0401,872,81813,465,18411,217,302 - 988,108172,2152,905,5942,710,9671,575,671 6,732,6177,074,18522,660,21822,660,218 - -116,877116,8771,017,411 - 10,136,535 9,236,095 42,717,346 41,175,371 1,575,671 (5,894,194)(4,503,773)(21,818,223)(20,798,880)(1,295,017) 4,242,3414,732,32220,899,12320,376,491280,654 4,242,3414,732,32220,899,12320,376,491280,654 7,659,1905,633,06029,827,82731,604,2033,852,959 2,0681,591220,803283,37812,502 - -92,08291,501 - -7,55158,897399,220 - 77,008 -153,47670,984 - 16,308 -56,47147,801 - - - - -87,068 - - - -775,962 - -515,000575,000 - 95,384 9,142 1,096,729 1,467,884 875,532 11,668 -38,89724,068 - - - - -199,578 - -5,347,1915,861,623 - 11,668 0 5,386,088 5,885,691 199,578 107,0529,1426,482,8177,353,5751,075,110 4,242,3414,732,32215,880,91416,381,443280,654 3,309,797891,5967,464,0967,869,1852,497,195 $7,552,138$5,623,918$23,345,010$24,250,628$2,777,849 The accompanying notes are an integral part of these financial statements. 35 CITY OF FRIDLEY, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For The Year Ended December 31, 2009 Business-Type Activities - Enterprise Funds LiquorWater Sales$4,973,000$ - Cost of sales(3,765,499) - Gross profit1,207,5010 Operating revenues: Customer billings -2,418,780 Charges for services - - Other revenues -620 Total operating revenues02,419,400 Total gross profit and operating revenues1,207,5012,419,400 Operating expenses: Personal services509,818786,271 Supplies and other charges: Disposal charges - - Other330,721788,093 Depreciation48,773627,317 Total operating expenses889,3122,201,681 Operating income (loss)318,189217,719 Nonoperating revenues (expenses): Intergovernmental revenue - - Investment income26114,072 Bond issuance costs - - Insurance reimbursement - - Interest expense -(221,448) Special assessments - - Gain (loss) on disposal of capital assets -(244,423) Total nonoperating revenues (expenses)261(451,799) Income (loss) before transfers318,450(234,080) Transfers: Transfers out(500,000) - Change in net assets(181,550)(234,080) Net assets - January 1 1,190,3129,394,272 Net assets - December 31$1,008,762$9,160,192 The accompanying notes are an integral part of these financial statements. 36 Exhibit A-7 Governmental Activities - Business-Type Activities - Enterprise Funds Internal Service Funds SewerStorm WaterTotals 20092008 $ -$ -$4,973,000$5,275,467$ - - -(3,765,499)(4,017,891) - 001,207,5011,257,5760 3,784,000408,8316,611,6116,379,984 - - - -7,57842,073 -48,40149,021637 - 3,784,000 457,232 6,660,632 6,388,199 42,073 3,784,000 457,232 7,868,133 7,645,775 42,073 655,048122,9002,074,0372,021,06045,818 3,268,346 -3,268,3463,013,046164,230 119,82447,3771,286,0151,321,937 - 307,358229,0721,212,5201,195,181128,702 4,350,576 399,349 7,840,918 7,551,224 338,750 (566,576)57,883 27,215 94,551 (296,677) - - - -10,240 8,5673,00825,908168,39415,038 - - -(37,204) - - - - -1,456 - -(221,448)(149,481) - -630630825 - 6,500 -(237,923) - - 15,067 3,638 (432,833)(17,466)26,734 (551,509)61,521 (405,618)77,085 (269,943) - -(500,000)(500,000) - (551,509)61,521 (905,618)(422,915)(269,943) 8,103,6475,562,39724,250,62824,673,5433,047,792 $7,552,138$5,623,918$23,345,010$24,250,628$2,777,849 The accompanying notes are an integral part of these financial statements. 37 CITY OF FRIDLEY, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2009 Business-Type Activities - Enterprise Funds LiquorWater Cash flows from operating activities: Receipts from customers and users$4,973,129$2,289,478 Receipts from interfund services provided - - Payment to suppliers(4,108,982)(739,938) Payment to employees(504,292)(775,766) Net cash flows from operating activities359,855773,774 Cash flows from noncapital financing activities: Transfers out(500,000) - Special assessment collections - - Net cash flows from noncapital financing activities(500,000)0 Cash flows from capital and related financing activities: Acquisition of capital assets -(1,903,811) Intergovernmental - - Insurance reimbursement - - Principal paid on revenue bonds -(575,000) Proceeds from sale of bonds - - Interest and paying agent fees on revenue bonds -(220,299) Proceeds from sale of capital assets - - Net cash flows from capital and related financing activities0(2,699,110) Cash flows from investing activities: Investment income26114,072 Net increase (decrease) in cash and cash equivalents(139,884)(1,911,264) Cash and cash equivalents - January 1410,4734,679,557 Cash and cash equivalents - December 31$270,589$2,768,293 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $318,189$217,719 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation48,773627,317 Changes in assets and liabilities: Decrease (increase) in receivables129(129,922) Decrease (increase) in prepaid items - - Decrease (increase) in inventories42,207(318) Increase (decrease) in payables(49,443)58,978 Total adjustments41,666556,055 Net cash provided by operating activities$359,855$773,774 Noncash capital and related financing activities: Acquisition of capital assets on accoun t$0$0 The accompanying notes are an integral part of these financial statements. 38 Exhibit A-8 Governmental Activities - Business-Type Activities - Enterprise Funds Internal Service Funds SewerStorm WaterTotals 20092008 $3,840,996$410,588$11,514,191$11,531,763$ - - - - -42,111 (3,411,176)(38,577)(8,298,673)(8,415,242)(152,128) (647,580)(122,900)(2,050,538)(1,983,174)(30,823) (217,760)249,1111,164,9801,133,347(140,840) - -(500,000)(500,000) - -3,6263,6263,349 - 03,626(496,374)(496,651)0 (185,892)(289,092)(2,378,795)(1,210,312)(194,644) - - - -10,239 - - - -1,456 - -(575,000)(300,000) - - - -3,725,000 - - -(220,299)(139,146) - 6,500 -6,500 - - (179,392)(289,092)(3,167,594)2,075,542(182,949) 8,5673,00825,908168,39415,038 (388,585)(33,347)(2,473,080)2,880,632(308,751) 2,516,231771,0078,377,2685,496,6363,880,825 $2,127,646$737,660$5,904,188 $8,377,268 $3,572,074 ($566,576)$57,883$27,215$94,551($296,676) 307,358229,0721,212,5201,195,181128,702 (20,012)(46,644)(196,449)(133,634)38 (22,508) -(22,508)(14,868) - - -41,88922,234 - 83,9788,800102,313(30,117)27,096 348,816191,2281,137,765 1,038,796 155,836 ($217,760)$249,111$1,164,980$1,133,347($140,840) $0$0$0$399,220$0 The accompanying notes are an integral part of these financial statements. 39 Exhibit A-9 CITY OF FRIDLEY, MINNESOTA STATEMENT OF FIDUCIARY NET ASSETS December 31, 2009 20092008 Assets: Cash and investments$24,479$32,393 Receivables: Accounts1,7462,148 Taxes: Unremitted3252 Delinquent293170 Total assets$26,550$34,763 Liabilities: Due to other governments$26,550$34,763 The accompanying notes are an integral part of these financial statements. 40 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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. 41 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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. 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. Thespecial assessment debt service fund services debt on the general obligation improvement bonds that were issued to finance construction of public improvements. Special assessment improvements are paid for completely or in part by property owners deemed to have benefited from such improvements. Thetax increment debt service fund services the debt of the tax increment bonds. Tax increment money is used to service the debt on redevelopment related bonds. 42 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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. 43 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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. 44 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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. 45 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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, 2009 are planned to be eliminated in 2009. 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 credit is recognized as revenue by the City at the time of collection. 46 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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). 47 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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. M. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), 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, 2009, no interest was capitalized in connection with construction in progress. Property, plant and equipment of the primary government, and the component units, are depreciated using the straight line method over the following estimated useful lives: Assets Improvements other than building 20 – 25 years Buildings and structures 20 – 25 years Machinery and equipment 5 – 10 years Infrastructure 25 years 48 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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 Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. 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. 49 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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 $9,254,861difference are as follows: Bonds payable$8,800,000 Accrued interest payable139,835 Other post employment benefits payable315,026 Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities$9,254,861 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 $(229,920) difference are as follows: Loss on disposal of capital assets($23,863) Capital outlay1,668,710 Depreciation expense(1,874,767) Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities($229,920) 50 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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 $116,246 difference are as follows: General property taxes deferred revenue: At December 31, 2008($225,658) At December 31, 2009329,279 Special assessments deferred revenue: At December 31, 2008(2,100,213) At December 31, 20092,112,838 Net adjustments to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities$116,246 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 $2,215,000 difference are as follows: Principal repayments: G.O. Improvement bonds535,000 Tax increment bonds1,680,000 Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities$2,215,000 T. Reclassifications Certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year’s presentation. 51 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 2. Deposits and Investments A.Deposits In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral includes the following: a) United States government treasury bills, treasury notes, treasury bonds; b) Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; c) General obligation securities of any state or local government with taxing powers which is rated “A” or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; d) Unrated general obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity: e) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc. or Standard & Poor’s Corporation; and f) Time deposits that are fully insured by any Federal agency. Custodial credit risk is the risk that in the event of a bank Custodial Credit Risk – Deposits: 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, 2009, the bank balance of the City’s deposits was covered by federal depository insurance or covered by 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. 52 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above, general obligation tax-exempt securities, or repurchase or reverse repurchase agreements. c) Obligations of the State of Minnesota or any of its municipalities as follows: 1) any security which is a general obligation of any state or local government with taxing powers which is rated “A” or better by a national bond rating service; 2) any security which is a revenue obligation of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; and 3) a general obligation of the Minnesota housing finance agency which is a moral obligation of the State of Minnesota and is rated “A” or better by a national bond rating agency. d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System. e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers; or, a bank qualified as a depositor. g) General obligation temporary bonds of the same governmental entity issued under section 429.091, subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6. As of December 31, 2009 the City had the following investments and maturities: Investment Maturities (in Years) FairLessOver Investment TypeRatingValueThan 11-56-1010 Years Federal Home Loan BankAAA$1,000,630$ - $1,000,630$ - $ - Federal National Mortgage Association5,889,131 - 5,889,131 - - Local government bonds3,710,739 - 3,710,739 - - Money marketN/A16,999,76316,999,763 - - - Total$27,600,263$16,999,763$10,600,500$0$0 Total investments$27,600,263 Deposits738,635 Petty cash4,550 Total cash and investments$28,343,448 53 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 As of December 31, 2009 the HRA had the following investments and maturities: Investment Maturities (in Years) FairLessOver Investment TypeRatingValueThan 11-56-1010 Years United States Treasury BondAAA$190,455$ - $ - $190,455$ - Federal National Mortgage Association992,190 - 992,190 - - Money marketN/A10,366,64610,366,646 - - - Total$11,549,291$10,366,646$992,190$190,455$0 Total investments$11,549,291 Deposits112,304 Total cash and investments$11,661,595 C. Investment Risks The City’s investment policy is to follow Minnesota State Statutes as described above which reduces the City’s exposure to credit, custodial credit, and interest rate risks. Specific risk information for the City is as follows: Custodial credit risk - investments – For investments in securities, custodial credit risk is the risk that in the event of a failure of the counterparty, the City will not be able to recover the value of its investments that are in the possession of an outside party. As of December 31, 2009, all investments of the City were insured, registered and held by the City or its agent in the City’s name. Investments in mutual funds are not evidenced by securities that exist in physical or book forms and therefore, are not subject to custodial credit risk. Interest rate risk – 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 – State law limits investments in commercial paper to the top rating issued by at least two of the nationally recognized statistical rating organizations. State law also limits investments in money market funds to those that meet the conditions of SEC rule 2a-7 and rated in one of the two highest rating categories by at least one NRSRO. The City invests in a First American Treasury Obligation Fund money market fund which is managed pursuant to the requirements of Rule 2a-7 and seeks to maintain a one dollar share price. As of December 31, 2009, the City’s investments in the FHLB notes were all rated AAA by Standard and Poor’s. Concentration of credit risk – The City places no limit on the amount the City may invest in any one issuer. More than 5% of the City’s investments are in various holdings as follows: Federal National Mortgage Association 21% Local government bonds 13% Money market: Federated Prime Cash Obligation Fund 22% Federated Tax-Free Obligations Fund 40% 54 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Concentration of credit risk – The HRA places no limit on the amount the HRA may invest in any one issuer. More than 5% of the HRA’s investments are in various holdings as follows: Federal National Mortgage Association 9% Money market: Federated Prime Cash Obligation Fund 28% Federated Government Obligations Fund 48% Wells Fargo Adv Govt Mkt 14% 3. Receivables Significant receivables balances not expected to be collected within one year of December 31, 2009 are as follows: Primary Government Major Funds Special Special AssessmentCapital AssessmentNonmajor GeneralDebt ServiceImprovementsCapital ProjectsFundsTotal Special assessments receivable$55,198$1,515,682$ - $76,519$ - $1,647,399 Delinquent property taxes162,26213,6692,085 - 5,884183,900 $217,460$1,529,351$2,085$76,519$5,884$1,831,299 HRA Component Unit Major Funds RevolvingGeneral NorthCenter LoanFundAreaCityTotal Mortgage receivable$1,042,584$ - $31,131$ - $1,073,715 Allowance for uncollectible accounts(75,359) - - - (75,359) Delinquent tax increment - 9,1858,29233,32750,804 $967,225$9,185$39,423$33,327$1,049,160 55 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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)$294,451$ - $294,451 Delinquent property taxes receivable (Capital Improvements Fund)3,788 - 3,788 Delinquent property taxes receivable (Special Assessment Debt Service Fund)21,862 - 21,862 Delinquent property taxes receivable (Nonmajor Funds)9,177 - 9,177 Special assessments not yet due (General Fund)70,793 - 70,793 Special assessments not yet due (Special Assessment Construction Fund)98,138 - 98,138 Special assessments not yet due (Special Assessment Debt Service Fund)1,943,906 - 1,943,906 Unearned grant funds (Grant Management Fund) - 157,843157,843 Total deferred/unearned revenue for governmental funds$2,442,115$157,843$2,599,958 4. Capital Assets Capital asset activity for the year ended December 31, 2009 was as follows: BeginningEnding Primary GovernmentBalanceIncreasesDecreasesBalance Governmental activities: Capital assets, not being depreciated: Land$2,841,516$ - $ - $2,841,516 Construction in progress137,30663,452(137,306)63,452 Total capital assets, not being depreciated2,978,82263,452(137,306)2,904,968 Capital assets, being depreciated: Buildings and structures7,908,39640,325 - 7,948,721 Machinery and equipment8,506,143483,602(358,719)8,631,026 Improvements4,410,8621,325,088(14,216)5,721,734 Infrastructure33,102,87490,014(41,910)33,150,978 Total capital assets, being depreciated53,928,2751,939,029(414,845)55,452,459 Less accumulated depreciation for: Buildings and structures5,342,092296,196 - 5,638,288 Machinery and equipment6,384,382561,252(334,855)6,610,779 Improvements3,297,313213,068(14,216)3,496,165 Infrastructure16,777,374934,773(41,910)17,670,237 Total accumulated depreciation31,801,1612,005,289(390,981)33,415,469 Total capital assets being depreciated - net22,127,114(66,260)(23,864)22,036,990 Governmental activities capital assets - net$25,105,936($2,808)($161,170)$24,941,958 56 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 BeginningEnding Primary Government BalanceIncreasesDecreasesBalance Business-type activities: Capital assets, not being depreciated: Land$306,477$ - $ - $306,477 Construction in progress1,017,411116,877(1,017,411)116,877 Total capital assets, not being depreciated1,323,88800423,354 Capital assets, being depreciated: Buildings and structures3,262,996 - - 3,262,996 Improvements other than buildings11,217,3022,647,378(399,496)13,465,184 Machinery and equipment2,710,967230,912(36,285)2,905,594 Infrastructure22,660,218 - - 22,660,218 Total capital assets, being depreciated39,851,4832,878,290(435,781)42,293,992 Less accumulated depreciation for: Buildings and structures1,444,77686,636 - 1,531,412 Improvements other than buildings5,786,335442,946(155,073)6,074,208 Machinery and equipment2,140,084160,227(36,285)2,264,026 Infrastructure11,427,685520,892 - 11,948,577 Total accumulated depreciation20,798,8801,210,701(191,358)21,818,223 Total capital assets being depreciated - net19,052,6031,667,589(244,423)20,475,769 Business-type activities capital assets - net$20,376,491$1,667,589($244,423)$20,899,123 Component unit: Capital assets, not being depreciated: Land$2,023,511$0$0$2,023,511 57 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government$174,471 Public safety263,290 Public works, including depreciation of general infrastructure assets1,225,848 Community development - Recreation and naturalist211,160 Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets128,702 Total depreciation expense - governmental activities$2,003,471 Business-type activities: Liquor$48,773 Water627,317 Sewer307,358 Storm water229,072 Total increases in accumulated depreciation$1,212,520 58 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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, 2009, 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%.$1,915,000 $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%.1,755,000 $3,920,000 General Obligation Tax Increment Refunding Bonds of 2004 due in varying annual installments of $230,000 - $605,000 through February 1, 2012; interest at 2.00% - 4.35%1,720,000 February 1, 2012; interest at 5.10% - 5.65%. This Bond was called on February 1, 2010. $1,805,000 General Obligation Improvement Bonds of 2005 due in varying annual installments of1,325,000 $155,000 - $210,000 through February 1, 2016; interest at 2.80% - 3.750%. $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%.2,085,000 Subtotal governmental activities$8,800,000 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.$255,000 $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%.1,690,000 $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%.455,000 $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%.3,465,000 Unamortized discount(2,809) Subtotal business-type activities5,862,191 Total primary government$14,662,191 59 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Annual debt service requirements to maturity for general obligation bonds and loans are as follows: Primary GovernmentComponent Unit Governmental ActivitiesBusiness-Type ActivitiesHRA Year EndingG.O. ImprovementTax IncrementRevenue BondsLoan Payable December 31,PrincipalInterestPrincipalInterestPrincipalInterestPrincipalInterest 2010$725,000$252,899$1,720,000$35,063$515,000$212,391$ - $ - 2011745,000227,051 - - 535,000194,334 - - 2012780,000199,803 - - 555,000175,864 - - 2013810,000170,963 - - 390,000160,239 - - 2014840,000140,085 - - 410,000146,034 - - 2015870,000107,315 - - 420,000130,510 - - 2016910,00072,890 - - 440,000114,085 - - 2017730,00040,835 - - 450,00096,841 - - 2018445,00017,728 - - 475,00078,598 - - 2019225,0004,500 - - 495,00059,198 - - 2020 - - - - 275,00043,660 - - 2021 - - - - 290,00032,005 - - 2022 - - - - 300,00019,688 - - 2023 - - - - 315,0006,694 - - Total$7,080,000$1,234,068$1,720,000$35,063$5,865,000$1,470,139$0$0 Long-term liability activity for the year ended December 31, 2009, was as follows: BeginningEndingDue Within BalanceAdditionsReductionsBalanceOne Year Governmental activities: Bonds payable: G.O. improvement bonds$7,615,000$ - ($535,000)$7,080,000$725,000 Tax increment bonds3,400,000 - (1,680,000)1,720,0001,720,000 Total bonds payable11,015,000 - (2,215,000)8,800,0002,445,000 Compensated absences952,762854,963(832,185)975,540775,962 Total government activity long-term debt$11,967,762$854,963($3,047,185)$9,775,540$3,220,962 Business-type activities: Bonds payable: G.O. revenue bonds$6,440,000$ - ($575,000)$5,865,000$515,000 Component units: Loan payable$277,560$ - ($277,560)$ - $ - Compensated absences are generally liquidated by the Employee Benefits Fund. All long-term bonded indebtedness outstanding at December 31, 2009 is backed by the full faith and credit of the City, including improvement and revenue bond issues. Delinquent assessments receivable at December 31, 2009 totaled $121,108. 60 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Revenues Pledged Revenue PledgedCurrent Year Percent ofDebt servicePrincipalPledged Use oftotalas a % ofTerm ofRemainingand InterestRevenue Bond IssueProceedsTypedebt servicenet revenuesPledgePrincipalpaidreceived 2008AStreet ImprovementsProperty Taxes and100%2008-$1,915,000$66,500$241,010 Special Assessments2019 2007AStreet ImprovementsProperty Taxes and100%2007-1,755,000222,438219,094 Special Assessments2018 2006AStreet ImprovementsProperty Taxes and100%2007-2,085,000302,700277,839 Special Assessments2017 2005AStreet ImprovementsProperty Taxes and100%2006-1,325,000213,368234,255 Special Assessments2016 Refunded bonds of 1997A 2005Binitial project was for Tax Increment100%2006- - 1,177,4001,177,400 redevelopment2009 Refunded bonds of 1998B 2004initial project was for Tax Increment100%2005-1,720,000599,095599,095 land acquisition2012 2004 Water Revenue BondsInfrastructure improvementsWater Customer100%4.60%2004-1,690,000111,2602,419,400 Net Revenue2019 2004 Water & Storm RevenueInfrastructure improvementsWater and Storm 100%5.58%2004-455,000160,5912,876,632 BondsCustomer Net Revenue2012 1998A Water Revenue BondsInfrastructure improvementsWater Customer100%5.57%1998-255,000134,8752,419,400 Net Revenue2011 2008B Water Revenue BondsInfrastructure improvementsWater Customer100%16.06%2008-3,465,000388,5742,419,400 Net Revenue2023 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 Public Employees Retirement Fund (PERF) 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. PERF 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. 61 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF 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. PERF Basic Plan members and Coordinated Plan members were required to contribute 9.10% and 6%, respectively, of their annual covered salary. PEPFF members were required to contribute 9.4% of their annual covered salary in 2009. The City of Fridley, Minnesota is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan PERF members, 6.75% for Coordinated Plan PERF members, and 14.1% for PEPFF members. The City’s contributions for the years ending December 31, 2009, 2008 and 2007 equal to the contractually required contributions for each year as set by state statute for PERF and PEPFF as follows: PERFPEPFF 2007$315,035$371,932 2008346,545434,512 2009370,215499,795 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. Plan benefits depend solely on amounts contributed to the plan plus investment income, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies 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 four-tenths of one percent of the assets in each member's account. 62 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Total contributions made by the City during fiscal year 2009 were: Percentage of AmountCovered PayrollRequired EmployeesEmployerEmployeesEmployerRates PEDCP$2,104$2,1045.00%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 $104,427 and $121,925 in State Aid to the Association for 2009 and 2008, respectively. During 2009 and as of December 31, 2009, the Association held no securities issued by the City or other related parties. 63 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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, 2008 were: SingleMarried Plan 1 (medical and dental)$483$1,392 Plan 2 (medical and dental)3571,028 Plan 3 (medical and dental)327941 64 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 C. Participants As of the actuarial valuation dated July 2008, participants consisted of: Retired participants and beneficiaries currently receiving benefits9 Active employees85 Total94 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, 2009, was calculated as follows: Annual required contribution (ARC)$227,307 Interest on net OPEB obligation8,528 Adjustment to ARC(46,092) Annual OPEB cost189,743 Contributions made during the year(48,987) Increase in net OPEB obligation140,756 Net OPEB obligation - beginning of year213,167 Net OPEB obligation - end of year$353,923 65 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 The City first had an actuarial valuation performed for the Plan as of January 1, 2008 to determine the funded status of the Plan as of that date as well as the employer’s annual required contribution (ARC) for the fiscal year ended December 31, 2008. The City’s annual OPEB cost (expense) of $264,648 was equal to the ARC for the fiscal year, as the transition liability was set at zero as of December 31, 2007. The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan and the net OPEB obligation for 2008 and 2009 was as follows: Percentage of Fiscal YearAnnual OPEBEmployer Annual OPEB CostNet OPEB EndedCostContributionsContributedObligation December 31, 2008$264,648$51,48119.4%$213,167 December 31, 2009189,74248,98725.8%353,922 F. Funded Status and Funding Progress The City currently has no assets that have been irrevocably deposited in a trust for future health benefits; therefore, the actuarial value of assets is zero. The funded status of the Plan was as follows: Unfunded ActuarialActuarialUAAL as a ActuarialActuarialAccruedAccruedFundedCoveredPercentage of ValuationValue of AssetsLiability (AAL)*Liability (UAAL)RatioPayrollCovered Payrol Date(a)(b)(b-a)(a/b)(c) ( (b-a) / c) January 1, 2008$ - $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. 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. 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 66 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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, 2008 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%. 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, 2009, was 28 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$142,035$ - Nonmajor Governmental Funds: Special Revenue Funds: Police Activity Fund - 51,150 HRA Reimbursement Fund - 40,098 Solid Waste Abatement Fund - 50,787 $142,035$142,035 67 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Interfund receivables and payables of the HRA component unit at December 31, 2009 are as follows: InterfundInterfund ReceivablesPayables Due From/Due To: General Fund$4,175,825$ - Capital Projects Funds: Lake Pointe - 685,303 Gateway East - 824,653 Gateway West - 1,519,109 University / Osborne - 107,000 57th Avenue Redevelopment - 128,760 McGlynn Bakeries - 104,000 Satellite Lane Apts. - 162,000 Tax Increment District #19 - 45,000 Gateway Northeast - 600,000 $4,175,825$4,175,825 The above balances are not expected to be eliminated within one year of December 31, 2009. Interfund Transfers: Transfer InTransfer Out Governmental Funds: Major Funds: General Fund$750,000$ - Special Assessment Debt Service - 808,421 Capital Improvements - 1,192,000 Special Assessment Construction Capital Projects1,716,449 - Nonmajor Funds33,972 - Total governmental funds2,500,4212,000,421 Proprietary Funds: Liquor - 500,000 Total$2,500,421$2,500,421 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. 68 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 10. Reserved Fund Balances The following reservations have been made of various fund balances of the primary government at December 31, 2009: General Fund: Reserved for: Inventory$58,928 Debt Service Funds: Reserved for debt service1,734,624 Total Governmental Funds$1,793,552 The HRA component unit had reserved fund balances at December 31, 2009: Reserved for: Debt service$1,720,000 Mortgage receivable1,243,988 $2,963,988 69 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 11. Designated Fund Balance The following designations have been made of various fund balances at December 31, 2009: General Fund: Working capital$4,600,988 Special Revenue Funds: Cable TV Fund: Cable TV operations1,167,932 Solid Waste Abatement fund: Recycling operations13,443 Drug and Gambling Forfeiture Fund: Drug and gambling enforcement28,349 Spring Brook Nature Fund: Nature Center65,127 F.C.C. Donations: Fridley community center83,038 Total Special Revenue Funds1,357,889 Capital Projects Funds: Capital Improvements Fund: Future improvements4,559,346 Total of designated fund balances$10,518,223 70 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 12. Tax Increment Districts The HRA is the administering authority for the following Tax Increment Districts: FiscalRetained YearDisparityBy Tax Capacity Values EstablishedDistrictDistrict NameCurrentOriginalCapturedAdjustmentsAuthority 19791Center City797,407118,636$678,771$ - $678,771 19856Lake Pointe1,026,70883,780942,928 - 942,928 19867Winfield78,5803,58274,998 - 74,998 19899Onan/Old Central Avenue445,56942,722402,847 - 402,847 199211University/Osborne97,43626,47870,958 - 70,958 199212McGlynn's83,36441,25442,110 - 42,110 199513Satellite Lane Apartments55,0632,33452,729 - 52,729 19971657th Avenue Replacement37,3107,30130,009 - 30,009 200017Gateway East51,9905,04246,948 - 46,948 200718Gateway West16,5614,25812,303 - 12,303 200719TIF #19199,97445,628154,346 - 154,346 1995HR1/05Housing Replacement2,5232702,253 - 2,253 1995HR1/06Housing Replacement6,4646865,778 - 5,778 1995HR1/Q2Housing Replacement2,4073182,089 - 2,089 1995HR1/Q3Housing Replacement2,1043931,711 - 1,711 1995HR1/Q4Housing Replacement6,7867816,005 - 6,005 1995HR1/S3Housing Replacement2,5385162,022 - 2,022 1995HR1/S4Housing Replacement2,6575632,094 - 2,094 1995HR1/S5Housing Replacement2,0673751,692 - 1,692 1995HR1/S6Housing Replacement2,0444431,601 - 1,601 1995HR1/T7Housing Replacement2,2186401,5781,578 Totals$2,921,770$386,000$2,535,770$0$2,535,770 13. Commitments and Contingencies A. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. During 1987, the City established the Self Insurance Fund (an Internal Service Fund) to account for and finance its uninsured risks of loss. Workers compensation coverage is provided through a pooled self-insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is subject to a $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. 71 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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, 2009, the Self Insurance Fund has accumulated equity in the amount of $1,570,710 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, 2009. 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. 72 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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, 2009 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, 2009, the City had construction project contracts in progress. The commitments related to the remaining contract balances are summarized as follows: Remaining ProjectCommitment 2009 Street Rehabilitation$76,142 Stormwater Repair 45th Avenue20,028 G. Commitments - HRA The HRA has pledged future tax increments to the City of Fridley, Minnesota for the City’s general obligation tax increment debt. 73 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 14. Leases A. Lease Expense The City leases space for one of its liquor stores. Total costs for this lease was $103,943 for the year ended December 31, 2009. The future minimum lease payments for this lease are as follows: Year Ending December 31,Amount 2010$109,981 2011109,981 2012109,981 2013109,981 201491,650 Total$531,574 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, 2009, totaled $225,026. Terms of each lease are as follows: Annual Lease AdjustmentExpirationRenewal LesseeFactor*DateOptions T-Mobile-CommonsGreater of 2% or CPI up to 5%07/01/104 Five Year Renewals T-Mobile Highway 65Greater of 3% or CPI12/31/112 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 CPI06/30/103 Five Year Renewals Sprint - Highway 65Greater of 5% or CPI09/30/103 Five Year Renewals Crown Castle - Well #13Greater of 5% or CPI09/30/132 Five Year Renewals *Amounts for future lease receipts are unavailable because they are based on the Consumer Price Index. 74 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 15. Conduit Debt Obligation From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2009, there were 30 series of Industrial Revenue Bonds issued. The aggregate principal amount payable for the eight series issued after July 1, 1995 is $24,912,365. 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. 16. Deficit Fund Balances At December 31, 2009, individual funds with a deficit fund balance are as follows: Primary government: Non major Special Revenue Fund: Police Activity$28,242 Component unit: Lake Pointe$589,231 Gateway East774,318 Gateway West1,514,583 57th Avenue Redevelopment124,822 University / Osborne41,315 McGlynn Bakeries64,374 Satellite Lane Apartments105,049 17. Contingent Receivable In 1999, the HRA entered into an agreement with Medtronic for the sale of land from the HRA to Medtronic. The original principal amount of the receivable was $5,000,000. 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. 75 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 18. 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. 51 Accounting and Financial Reporting for Intangible Assets.The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2009. Statement No. 53 Accounting and Financial Reporting for Derivative Investments. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2009. Statement No. 54 Fund Balance Reporting and Governmental Fund Type Definitions. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2010. The effect these standards may have on future financial statements is not determinable at this time. 76 REQUIRED SUPPLEMENTARY INFORMATION 77 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, 2009 With comparative actual amounts for the year ended December 31, 2008 2009 Variance with Final Budget - 2008 ActualPositiveActual Budgeted Amounts OriginalFinalAmounts(Negative)Amounts Revenues: Taxes and special assessments: Current ad valorem taxes$8,352,474$8,098,134$8,002,893($95,241)$8,049,121 Delinquent ad valorem taxes70,00070,00078,4148,41481,458 Penalties and interest8,0008,00031,77323,77310,064 Special assessments14,50014,50051,67537,17523,170 Total taxes and special assessments8,444,9748,190,6348,164,755(25,879)8,163,813 Licenses and permits: Licenses: Rental90,70090,70097,0886,38895,582 Business87,70087,70086,970(730)80,305 All other29,00029,00028,635(365)29,955 Permits482,200482,200528,35046,150519,952 Total licenses and permits689,600689,600741,04351,443725,794 Intergovernmental revenue: Federal grants7,00043,84846,8653,01739,222 State maintenance aid220,000220,000211,502(8,498)199,603 State credits - 361,640361,640 - 338,986 Local government aid1,332,8531,332,853974,898(357,955)361,153 Other state grants - 9,28217,9628,68015,278 Police and fire pension432,282432,282420,069(12,213)433,557 Total intergovernmental revenue1,992,1352,399,9052,032,936(366,969)1,387,799 Charges for services: General government1,030,7001,030,7001,185,541154,8411,059,923 Public safety230,400241,545242,276731288,591 Public works50,60051,01517,804(33,211)26,351 Community development10,00010,0008,978(1,022)9,108 Recreation262,000262,000219,878(42,122)252,377 Total charges for services1,583,7001,595,2601,674,47779,2171,636,350 Fines and forfeits250,000250,000217,464(32,536)287,776 Investment income190,000190,00018,501(171,499)151,883 Miscellaneous revenue: Insurance and other reimbursements59,00060,50053,090(7,410)77,019 Gambling tax74,00074,00061,626(12,374)68,257 Donations1,6005,86615,4229,55642,946 Miscellaneous70,00070,30025,744(44,556)8,987 Total miscellaneous revenue204,600210,666155,882(54,784)197,209 Total revenues13,355,009 13,526,065 13,005,058 (521,007)12,550,624 78 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, 2009 With comparative actual amounts for the year ended December 31, 2008 2009 Variance with Final Budget - 2008 Budgeted AmountsActualPositiveActual OriginalFinalAmounts(Negative)Amounts Expenditures: General government: Mayor and council: Personal services$89,595$85,287$85,287$ - $83,925 Supplies and other charges32,04127,02827,028 - 28,125 Total mayor and council121,636112,315112,3150112,050 City manager: Personal services221,721225,373225,373 - 225,144 Supplies and other charges68,04357,48450,3657,11954,006 Total City manager289,764282,857275,7387,119279,150 Human resources: Personal services182,890190,914190,914 - 184,214 Supplies and other charges25,58016,77716,777 - 26,891 Total human resources208,470207,691207,6910211,105 Legal: Supplies and other charges412,460412,460351,17961,281362,796 Elections: Personal services - 438438 - 4,655 Supplies and other charges3,10912,96612,966 - 48,657 Total elections3,10913,40413,404053,312 Accounting: Personal services671,668670,604610,13560,469654,907 Supplies and other charges85,19070,90060,03610,86485,643 Total accounting756,858741,504670,17171,333740,550 Assessing: Personal services189,370196,752196,752 - 178,545 Supplies and other charges8,5495,7115,711 - 8,194 Total assessing197,919202,463202,4630186,739 MIS: Personal services200,232199,031196,3422,689195,714 Supplies and other charges87,52227,54320,4627,08160,669 Total MIS287,754226,574216,8049,770256,383 City clerk/records: Personal services156,698156,698142,30914,389134,005 Supplies and other charges23,08118,6637,36311,30020,621 Total City clerk/records179,779175,361149,67225,689154,626 Nondepartmental: Personal services10,00013,44813,448 - 8,585 Supplies and other charges61,75033,30217,50115,80181,662 Total nondepartmental71,75046,75030,94915,80190,247 79 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, 2009 With comparative actual amounts for the year ended December 31, 2008 2009 Variance with Final Budget - 2008 Budgeted AmountsActualPositiveActual OriginalFinalAmounts(Negative)Amounts Expenditures: (continued) General government: (continued) Municipal center: Personal services$38,066$38,066$33,661$4,405$33,177 Supplies and other charges242,976241,478193,53747,941231,521 Total municipal center281,042279,544227,19852,346264,698 Total general government2,810,5412,700,9232,457,584243,3392,711,656 Public safety: Police: Personal services4,499,5314,514,3964,514,396 - 4,402,737 Supplies and other charges597,000460,093460,093 - 534,807 Total police5,096,5314,974,4894,974,48904,937,544 Fire: Personal services1,091,6681,129,9381,129,938 - 1,037,829 Supplies and other charges206,114149,978144,7765,202168,019 Total fire1,297,7821,279,9161,274,7145,2021,205,848 Rental inspections: Personal services130,530123,95278,32045,632121,597 Supplies and other charges20,30212,9827,2275,75510,672 Total rental inspections150,832136,93485,54751,387132,269 Civil defense: Supplies and other charges23,55625,19212,93912,25320,080 Total public safety6,568,7016,416,5316,347,68968,8426,295,741 Public works: Engineering: Personal services471,990466,657466,657 - 457,888 Supplies and other charges76,90966,03366,033 - 75,116 Total engineering548,899532,690532,6900533,004 Public works and parks: Personal services1,731,0371,686,0561,681,2134,8431,657,985 Supplies and other charges1,069,297985,627865,194120,433970,641 Total public works and parks2,800,3342,671,6832,546,407125,2762,628,626 Total public works3,349,2333,204,3733,079,097125,2763,161,630 Community development: Building inspection: Personal services240,491241,253241,253 - 227,550 Supplies and other charges110,30770,68564,7615,92491,407 Total building inspection350,798311,938306,0145,924318,957 80 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, 2009 With comparative actual amounts for the year ended December 31, 2008 2009 Variance with Final Budget - 2008 Budgeted AmountsActualPositiveActual OriginalFinalAmounts(Negative)Amounts Expenditures: (continued) Community development: (continued) Planning: Personal services$383,651$378,565$378,565$ - $370,919 Supplies and other charges88,25073,53245,49728,03585,084 Total planning471,901452,097424,06228,035456,003 Total community development822,699764,035730,07633,959774,960 Parks and recreation: Personal services651,900647,542597,27850,264587,297 Supplies and other charges301,770282,581235,23947,342271,553 Total parks and recreation953,670930,123832,51797,606858,850 Contingency: Current: Supplies and other charges105,00059,256 - 59,256 - Capital outlay: Public safety135,246109,315109,315 - 170,664 Public works175,000182,902162,49420,40873,185 Total capital outlay310,246292,217271,80920,408243,849 Total expenditures14,920,09014,367,45813,718,772648,68614,046,686 Excess (deficiency) of revenues over (under) expenditures(1,565,081)(841,393)(713,714)127,679(1,496,062) Other financing sources (uses): Proceeds from sale of capital assets - - 36,84536,84513,101 Transfers in750,000750,000750,000 - 817,440 Transfers out - - - - (20,000) Total other financing sources (uses)750,000750,000786,84536,845810,541 Net change in fund balance($815,081)($91,393)73,131$164,524(685,521) Fund balance - January 14,586,7855,272,306 Fund balance - December 31$4,659,916$4,586,785 81 Exhibit B-2 CITY OF FRIDLEY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GRANT MANAGEMENT FUND For The Year Ended December 31, 2009 With comparative actual amounts for the year ended December 31, 2008 2009 Variance with Final Budget - 2008 Budgeted AmountsActualPositiveActual OriginalFinalAmounts(Negative)Amounts Revenues: Intergovernmental: Federal grants$114,149$164,980$159,282($5,698)$110,765 State Grants - - 5,6505,650 - Miscellaneous revenue: Donations - - 48483,308 Total revenues114,149 164,980 164,980 0 114,073 Expenditures: Current: Community development: Personal services100,921107,763107,763 - 99,923 Supplies and other charges13,22857,21757,217 - 14,150 Total expenditures114,149 164,980 164,980 0 114,073 Excess (deficiency) of revenues over (under) expenditures$0$00$00 Fund balance - January 1 - - Fund balance - December 31$0$0 82 CITY OF FRIDLEY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE NOTE TO RSI December 31, 2009 A. BUDGETS The General Fund and Grant Management Fund budgets are legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. The legal level of budgetary control is at the expenditure category level. 83 CITY OF FRIDLEY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS - RETIREE HEALTH PLAN For The Year Ended December 31, 2009 Unfunded ActuarialActuarialUAAL as a ActuarialActuarialAccruedAccruedFundedCoveredPercentage of ValuationValue of AssetsLiability (AAL)*Liability (UAAL)RatioPayrollCovered Payroll Date(a)(b)(b-a)(a/b)(c) ( (b-a) / c) January 1, 2008$ - $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. 84 COMBINED, COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES 85 CITY OF FRIDLEY 86 NONMAJOR GOVERNMENTAL FUNDS 87 CITY OF FRIDLEY 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, 2009 With comparative amounts for December 31, 2008 Nonmajor Special Revenue 20092008 Assets Cash and investments$1,300,624$1,232,661 Receivables: Accounts107,03781,707 Taxes11,6969,802 Due from component unit40,11710,058 Due from other governments91,49435,150 Total assets$1,550,968$1,369,378 Liabilities and Fund Balance Liabilities: Accounts payable$52,432$25,199 Due to other governments624426 Due to other funds142,03539,526 Salaries payable17,05311,910 Deferred revenue9,1777,801 Total liabilities221,32184,862 Fund balance: Reserved -25,590 Unreserved: Designated1,357,8891,258,926 Undesignated(28,242) - Total fund balance1,329,6471,284,516 Total liabilities and fund balance$1,550,968$1,369,378 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, 2009 With comparative amounts for the year ended December 31, 2008 Nonmajor Special Revenue 20092008 Revenues: Taxes$299,728$294,191 Licenses and permits224,320220,491 Intergovernmental revenue113,28160,577 Charges for services343,651341,805 Fines and forfeits37,55028,870 Investment income4,77032,956 Miscellaneous109,327160,294 Total revenues1,132,627 1,139,184 Expenditures: Current: General government594,692607,705 Public safety99,02328,169 Parks, recreation and naturalist382,426393,805 Capital outlay45,32738,955 Total expenditures1,121,4681,068,634 Excess (deficiency) of revenues over (under) expenditures11,15970,550 Other financing sources (uses): Transfers in33,97225,000 Transfers out -(20,900) Total other financing sources (uses)33,9724,100 Net change in fund balance45,13174,650 Fund balance - January 11,284,5161,209,866 Fund balance - December 31$1,329,647$1,284,516 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, 2009 With comparative totals for December 31, 2008 Solid Waste AssetsCable TVAbatement Cash and investments$1,114,310$ - Receivables: Accounts56,21250,825 Taxes - - Due from component unit - - Due from other governments -63,700 Total assets$1,170,522$114,525 Liabilities and Fund Balance Liabilities: Accounts payable$91$47,929 Due to other governments - 9 Due to other funds - 50,787 Salaries payable2,4992,357 Deferred revenue - - Total liabilities2,590101,082 Fund balance: Reserved for public safety - - Unreserved: Designated for special revenue programs1,167,93213,443 Undesignated - - Total fund balance1,167,93213,443 Total liabilities and fund balance$1,170,522$114,525 94 Exhibit C-3 Drug and Springbrook HRAGamblingF.C.C.Nature Center Totals Nonmajor Special ReimbursementForfeitureDonationsPolice ActivityFund Revenue Funds 20092008 $ - $28,349$83,038$ - $74,927$1,300,624$1,232,661 - - - - - 107,03781,707 - - - - 11,69611,6969,802 40,117 - - - - 40,11710,058 - - - 25,7942,00091,49435,150 $40,117$28,349$83,038$25,794$88,623$1,550,968$1,369,378 $ - $ - $ - $ - $4,412$52,432$25,199 19 - - - 596624426 40,098 - - 51,150 - 142,03539,526 - - - 2,8869,31117,05311,910 - - - - 9,1779,1777,801 40,1170054,03623,496221,32184,862 - - - - - - 25,590 - 28,34983,038 - 65,1271,357,8891,258,926 - - - (28,242) - (28,242) - 028,34983,038(28,242)65,1271,329,6471,284,516 $40,117$28,349$83,038$25,794$88,623$1,550,968$1,369,378 95 CITY OF FRIDLEY, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS For The Year Ended December 31, 2009 With comparative totals for the year ended December 31, 2008 Solid Waste Cable TVAbatement Revenues: Taxes$ -$ - Licenses and permits224,320 - Intergovernmental revenue - 63,700 Charges for services700257,759 Fines and forfeits - - Investment income4,470 - Miscellaneous7777,999 Total revenues229,567399,458 Expenditures: Current: General government141,728422,777 Public safety - - Parks, recreation and naturalist - - Capital outlay8,280 - Total expenditures150,008422,777 Excess (deficiency) of revenues over (under) expenditures79,559(23,319) Other financing sources (uses): Transfers in - 33,972 Transfers out - - Total other financing sources (uses)033,972 Net change in fund balance79,55910,653 Fund balance - January 11,088,3732,790 Fund balance - December 31$1,167,932$13,443 96 Exhibit C-4 Drug and Springbrook HRAGamblingF.C.C.Nature Center Totals Nonmajor Special ReimbursementForfeitureDonationsPolice ActivityFund Revenue Funds 20092008 $ - $ - $ - $ - $299,728$299,728$294,191 - - - - - 224,320220,491 26,805 - - 22,776 - 113,28160,577 - - - - 85,192343,651341,805 - 23,382 - 14,168 - 37,55028,870 - - 350(82)324,77032,956 - - - - 31,251109,327160,294 26,80523,38235036,862416,2031,132,6271,139,184 26,805 - 3,382 - - 594,692607,705 - 8,329 - 90,694 - 99,02328,169 - - - - 382,426382,426393,805 - 7,047 - - 30,00045,32738,955 26,80515,3763,38290,694412,4261,121,4681,068,634 08,006(3,032)(53,832)3,77711,15970,550 - - - - - 33,97225,000 - - - - - - (20,900) 0000033,9724,100 08,006(3,032)(53,832)3,77745,13174,650 - 20,34386,07025,59061,3501,284,5161,209,866 $0$28,349$83,038($28,242)$65,127$1,329,647$1,284,516 97 Exhibit D-1 CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUND - CABLE TV FUND COMPARATIVE BALANCE SHEET December 31, 2009 and 2008 Assets 20092008 Cash and investments$1,114,310$1,034,259 Accounts receivable56,21256,331 Total assets$1,170,522$1,090,590 Liabilities and Fund Balance Liabilities: Accounts payable$91$143 Salaries payable2,4992,074 Total liabilities2,5902,217 Fund balance: Unreserved: Designated for special revenue programs1,167,9321,088,373 Total liabilities and fund balance$1,170,522$1,090,590 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, 2009 With comparative actual amounts for the year ended December 31, 2008 20092008 Budgeted AmountsActualActual OriginalFinalAmountsAmounts Revenues: Licenses - franchise fee$210,000$210,000$224,320$220,491 Charges for services800800700700 Investment income40,00040,0004,47029,229 Miscellaneous20020077272 Total revenues251,000 251,000 229,567 250,692 Expenditures: Current: General government: Personal services132,537131,875131,877127,769 Supplies and other charges13,45811,9029,85117,373 Capital outlay9,5009,5008,28024,780 Total expenditures155,495 153,277 150,008 169,922 Excess of revenues over expenditures$95,505$97,72379,55980,770 Fund balance - January 11,088,3731,007,603 Fund balance - December 31$1,167,932$1,088,373 99 Exhibit D-3 CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUND - SOLID WASTE ABATEMENT FUND COMPARATIVE BALANCE SHEET December 31, 2009 and 2008 Assets 20092008 Cash and other investments$ -$ - Accounts receivable50,82525,376 Due from other governments63,70031,712 Total assets$114,525$57,088 Liabilities and Fund Balance Liabilities: Accounts payable$47,929$22,799 Salaries payable2,3572,031 Due to other governments9 - Due to other funds50,78729,468 Total liabilities101,08254,298 Fund balance: Unreserved: Designated for special revenue programs13,443(3,756) Undesignated -6,546 Total fund balance13,4432,790 Total liabilities and fund balance$114,525$57,088 100 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, 2009 With comparative actual amounts for the year ended December 31, 2008 20092008 Budgeted AmountsActualActual OriginalFinalAmountsAmounts Revenues: Intergovernmental revenue: State$64,000$64,000$63,700$31,712 Charges for services259,300259,300257,759251,690 Miscellaneous130,000130,00077,999157,022 Total revenues453,300 453,300 399,458 440,424 Expenditures: Current: General government: Personal services67,96069,26269,26268,082 Supplies and other charges419,312419,187353,515370,796 Total expenditures487,272 488,449 422,777 438,878 Excess (deficiency) of revenues over (under) expenditures(33,972)(35,149)(23,319)1,546 Other financing sources: Transfers in33,97233,97233,9725,000 Net change in fund balance$0($1,177)10,6536,546 Fund balance (deficit) - January 12,790(3,756) Fund balance - December 31$13,443$2,790 101 Exhibit D-5 CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUND - HRA REIMBURSEMENT FUND COMPARATIVE BALANCE SHEET December 31, 2009 and 2008 Assets 20092008 Due from component unit$40,117$10,058 Total assets$40,117$10,058 Liabilities and Fund Balance Liabilities: Due to other governements$19$ - Due to other funds40,09810,058 Total liabilities40,11710,058 Fund balance - - Total liabilities and fund balance$40,117$10,058 102 Exhibit D-6 CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUND - HRA REIMBURSEMENT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2009 With comparative actual amounts for the year ended December 31, 2008 20092008 Budgeted AmountsActualActual OriginalFinalAmountsAmounts Revenues: Intergovernmental revenue: Housing and Redevelopment Authority$ - $26,805$26,805$23,685 Expenditures: Current: General government: Supplies and other charges - 26,80526,80523,685 Excess (deficiency) of revenues over (under) expenditures$0$000 Fund balance - January 1 - - Fund balance - December 31$0$0 103 Exhibit D-7 CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUND - DRUG AND GAMBLING FORFEITURE FUND COMPARATIVE BALANCE SHEET December 31, 2009 and 2008 Assets 20092008 Cash and investments$28,349$21,787 Due from other governments -150 Total assets$28,349$21,937 Liabilities and Fund Balance Liabilities: Accounts payable$ -$1,168 Due to other governments -426 Total liabilities01,594 Fund balance: Unreserved: Designated for special revenue programs28,34920,343 Total liabilities and fund balance$28,349$21,937 104 Exhibit D-8 CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUND - DRUG AND GAMBLING FORFEITURE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2009 With comparative actual amounts for the year ended December 31, 2008 20092008 Budgeted AmountsActualActual OriginalFinalAmountsAmounts Revenues: Fines and forfeits$ - $15,375$23,382$28,870 Expenditures: Current: Public safety Supplies and other charges - 8,3288,32928,169 Capital outlay - 7,0477,04714,175 Total expenditures015,37515,37642,344 Excess (deficiency) of revenues over (under) expenditures$0$08,006(13,474) Fund balance - January 120,34333,817 Fund balance - December 31$28,349$20,343 105 Exhibit D-9 CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUND - F.C.C. DONATIONS FUND COMPARATIVE BALANCE SHEET December 31, 2009 and 2008 Assets 20092008 Cash and investments$83,038$86,070 Total assets$83,038$86,070 Liabilities and Fund Balance Liabilities$ - $ - Fund balance: Unreserved: Designated for special revenue programs83,03886,070 Total liabilities and fund balance$83,038$86,070 106 Exhibit D-10 CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUND - F.C.C. DONATIONS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2009 With comparative actual amounts for the year ended December 31, 2008 20092008 Budgeted AmountsActualActual OriginalFinalAmountsAmounts Revenues: Investment income$ - $350$350$2,489 Expenditures: Current: General government: Supplies and other charges - 3,3823,382 - Excess (deficiency) of revenues over (under) expenditures$0($3,032)(3,032)2,489 Fund balance - January 186,07083,581 Fund balance - December 31$83,038$86,070 107 Exhibit D-11 CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUND - POLICE ACTIVITY FUND COMPARATIVE BALANCE SHEET December 31, 2009 and 2008 Assets 20092008 Cash and investments$ -$22,302 Due from other governments25,7943,288 Total assets$25,794$25,590 Liabilities and Fund Balance Liabilities: Salaries payable$2,886$ - Due to other funds51,150 - Total liabilities54,0360 Fund balance: Reserved for police activity(28,242)25,590 Total liabilities and fund balance$25,794$25,590 108 Exhibit D-12 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, 2009 With comparative actual amounts for the year ended December 31, 2008 20092008 Budgeted AmountsActualActual OriginalFinalAmountsAmounts Revenues: Intergovernmental$16,328$16,328$22,776$5,180 Investment income - - (82)584 Fines and forfeits101,200101,20014,168 - Total revenues117,528117,52836,8625,764 Expenditures117,528117,40390,694 - Excess (deficiency) of revenues over (under) expenditures0125(53,832)5,764 Other financing sources (uses): Transfers in: General Fund - - - 20,000 Transfers out: General Fund - - - (20,900) Total other financing sources (uses)000(900) Net change in fund balance$0$125(53,832)4,864 Fund balance - January 125,59020,726 Fund balance (deficit) - December 31($28,242)$25,590 109 Exhibit D-13 CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUND - SPRINGBROOK NATURE CENTER FUND COMPARATIVE BALANCE SHEET December 31, 2009 and 2008 Assets 20092008 Cash and investments$74,927$68,243 Receivables: Accounts - - Taxes11,6969,802 Due from other governments2,000 - Total assets$88,623$78,045 Liabilities and Fund Balance Liabilities: Accounts payable$4,412$1,089 Salaries payable9,3117,805 Due to other governments596 - Deferred revenue9,1777,801 Total liabilities23,49616,695 Fund balance: Unreserved: Designated for special revenue programs65,12761,350 Total liabilities and fund balance$88,623$78,045 110 Exhibit D-14 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, 2009 With comparative actual amounts for the year ended December 31, 2008 20092008 Budgeted AmountsActualActual OriginalFinalAmountsAmounts Revenues: Taxes$302,900$302,900$299,728$294,191 Charges for service83,70083,70085,19289,415 Investment income70070032654 Miscellaneous4,00034,00031,2513,000 Total revenues391,300421,300416,203387,260 Expenditures: Current: Parks, recreation and naturalist Personal services314,556321,508321,508320,443 Supplies and other charges64,48260,91860,91873,362 Capital outlay - 30,00030,000 - Total expenditures379,038 412,426 412,426 393,805 Excess (deficiency) of revenues over (under) expenditures$12,262$8,8743,777(6,545) Fund balance - January 161,35067,895 Fund balance - December 31$65,127$61,350 111 CITY OF FRIDLEY 112 CAPITAL PROJECT FUND 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. 113 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, 2009 With comparative actual amounts for the year ended December 31, 2008 20092008 Budgeted AmountsActualActual OriginalFinalAmountsAmounts Revenues: Taxes$107,300$ - $1,053$99,236 Intergovernmental revenue: State706,250706,25014,9091,162,093 Investment income162,841162,84121,620168,761 Miscellaneous10,00010,0001,500 - Total revenues986,391 879,091 39,082 1,430,090 Expenditures: Current: General government: Supplies and other charges - 16,01716,0172,984 Parks, recreation and naturalist: Supplies and other charges - 86,19586,197113,499 Debt service - - - 7,338 Capital outlay305,000105,92769,48052,407 Total expenditures305,000 208,139 171,694 176,228 Excess of revenues over expenditures681,391670,952(132,612)1,253,862 Other financing sources (uses): Bonds issued - - - 1,915,000 Transfers In - - - 102,554 Transfers out(1,192,000)(1,192,000)(1,192,000)(2,492,662) Total other financing sources (uses)(1,192,000)(1,192,000)(1,192,000)(475,108) Net change in fund balance($510,609)($521,048)(1,324,612)778,754 Fund balance - January 15,883,9585,105,204 Fund balance - December 31$4,559,346$5,883,958 114 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. 115 Exhibit F-1 CITY OF FRIDLEY, MINNESOTA COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS December 31, 2009 With comparative totals for December 31, 2008 EmployeeSelfInformation BenefitsInsuranceSystems Totals Assets:20092008 Current assets: Cash and investments$1,266,456$1,570,710$734,908$3,572,074$3,880,825 Accounts receivable - - - - 235,000 Due from component unit231 - - 231269 Total current assets1,266,6871,570,710734,9083,572,3054,116,094 Capital assets, at cost: Machinery and equipment - - 1,575,6711,575,6711,404,562 Less: accumulated depreciation - - (1,295,017)(1,295,017)(1,189,850) Net capital assets00280,654280,654214,712 Total assets1,266,6871,570,7101,015,5623,852,9594,330,806 Liabilities: Current liabilities: Accounts payable - - 12,50212,502401 Due to component unit - - - - 235,000 Payroll deductions payable87,068 - - 87,06894,851 Compensated absences payable - current portion775,962 - - 775,962734,182 Total current liabilities863,030012,502875,5321,064,434 Noncurrent liabilities: Compensated absences payable199,578 - - 199,578218,580 Total liabilities1,062,608012,5021,075,1101,283,014 Net assets: Invested in capital assets - - 280,654280,654214,712 Unrestricted204,0791,570,710722,4062,497,1952,833,080 Total net assets$204,079$1,570,710$1,003,060$2,777,849$3,047,792 116 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, 2009 With comparative totals for the year ended December 31, 2008 EmployeeSelfInformation BenefitsInsuranceSystems Totals 20092008 Operating revenues: Charges for services$25,939$ - $16,134$42,073$252,597 Operating expenses: Personal services28,82616,992 - 45,818130,773 Supplies and other charges2,594148,61313,022164,22996,468 Depreciation - - 128,702128,702141,375 Total operating expenses31,420165,605141,724338,749368,616 Operating income (loss)(5,481)(165,605)(125,590)(296,676)(116,019) Nonoperating revenues: Investment income5,1876,5443,30715,038110,580 Intergovernmental - 10,239 - 10,23910,770 Insurance reimbursement - 1,456 - 1,456276,496 Payment to component unit - - - - (235,000) Loss on disposal of capital assets - - - - (26) Total nonoperating revenues5,18718,2393,30726,733162,820 Income (loss) before transfers(294)(147,366)(122,283)(269,943)46,801 Transfers: Transfers out - - - - (46,540) Change in net assets(294)(147,366)(122,283)(269,943)261 Net assets - January 1204,3731,718,0761,125,3433,047,7923,047,531 Net assets - December 31$204,079$1,570,710$1,003,060$2,777,849$3,047,792 117 Exhibit F-3 CITY OF FRIDLEY, MINNESOTA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For The Year Ended December 31, 2009 With comparative totals for the year ended December 31, 2008 EmployeeSelfInformation BenefitsInsuranceSystems Totals 20092008 Cash flows from operating activities: Receipts from interfund services provided$25,977$ - $16,134$42,111$252,597 Payment to suppliers(2,594)(148,613)(921)(152,128)(101,004) Payment to employees(13,831)(16,992) - (30,823)(15,112) Net cash flows from operating activities9,552(165,605)15,213(140,840)136,481 Cash flows from noncapital financing activites: Transfers to other funds - - - - (46,540) Cash flows from capital and related financing activities: Acquisition of capital assets - - (194,644)(194,644)(101,386) Intergovernmental revenue - 10,239 - 10,23910,770 Insurance reimbursement - 1,456 - 1,45641,496 Proceeds from sale of capital assets - - - - (26) Net cash flows from capital and and related financing activities 011,695(194,644)(182,949)(49,146) Cash flows from investing activities: Investment income5,1876,5443,30715,038110,580 Net increase (decrease) in cash and cash equivalents14,739(147,366)(176,124)(308,751)151,375 Cash and cash equivalents - January 11,251,7171,718,076911,0323,880,8253,729,450 Cash and cash equivalents - December 31$1,266,456 $1,570,710 $734,908 $3,572,074 $3,880,825 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) ($5,481)($165,605)($125,590)($296,676)($116,019) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation - - 128,702128,702141,375 Changes in assets and liabilities: Decrease (increase) in receivables38 - - 38 - Increase (decrease) in payables14,995 - 12,10127,096111,125 Total adjustments15,0330 140,803 155,836 252,500 Net cash provided by operating activities$9,552($165,605)$15,213($140,840)$136,481 118 Exhibit F-4 CITY OF FRIDLEY, MINNESOTA INTERNAL SERVICE FUND - EMPLOYEE BENEFITS FUND COMPARATIVE STATEMENT OF NET ASSETS December 31, 2009 With comparative totals for December 31, 2008 20092008 Assets: Current assets: Cash and investments$1,266,456$1,251,717 Due from component unit231269 Total current assets1,266,6871,251,986 Liabilities: Current liabilities: Payroll deductions payable87,06894,851 Accounts payable - - Compensated absences payable - current portion775,962734,182 Total current liabilities863,030829,033 Noncurrent liabilities: Compensated absences payable 199,578218,580 Total liabilities1,062,6081,047,613 Net assets: Unrestricted204,079204,373 Total net assets$204,079$204,373 119 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, 2009 With comparative amounts for the year ended December 31, 2008 20092008 Operating revenues$25,939$113,506 Operating expenses: Personal services28,826117,085 Supplies and other charges2,5943,072 Total operating expenses31,420120,157 Operating income (loss)(5,481)(6,651) Nonoperating revenues: Investment income5,18732,926 Change in net assets(294)26,275 Net assets - January 1204,373178,098 Net assets - December 31$204,079$204,373 120 Exhibit F-6 CITY OF FRIDLEY, MINNESOTA INTERNAL SERVICE FUND - EMPLOYEE BENEFITS FUND COMPARATIVE STATEMENT OF CASH FLOWS For The Year Ended December 31, 2009 With comparative amounts for the year ended December 31, 2008 20092008 Cash flows from operating activities: Receipts from interfund services provided$25,977$113,506 Payment to suppliers(2,594)(3,257) Payment to employees(13,831)(1,424) Net cash flows from operating activities9,552108,825 Cash flows from investing activities: Investment income5,18732,926 Net increase in cash and cash equivalents14,739141,751 Cash and cash equivalents - January 11,251,7171,109,966 Cash and cash equivalents - December 31$1,266,456 $1,251,717 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) ($5,481)($6,651) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Changes in assets and liabilities: (Increase) decrease in receivables38 - Increase (decrease) in payables14,995115,476 Total adjustments15,033 115,476 Net cash provided by operating activities$9,552$108,825 121 Exhibit F-7 CITY OF FRIDLEY, MINNESOTA INTERNAL SERVICE FUND - SELF INSURANCE FUND COMPARATIVE STATEMENT OF NET ASSETS December 31, 2009 With comparative amounts for December 31, 2008 20092008 Assets: Current assets: Cash and investments$1,570,710$1,718,076 Accounts receivable - 235,000 Total assets1,570,7101,953,076 Liabilities: Current liabilities: Due to component unit - 235,000 Total liabilities0235,000 Net assets: Unrestricted1,570,7101,718,076 Total net assets$1,570,710$1,718,076 122 Exhibit F-8 CITY OF FRIDLEY, MINNESOTA INTERNAL SERVICE FUND - SELF INSURANCE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS For The Year Ended December 31, 2009 With comparative amounts for the year ended December 31, 2008 20092008 Operating revenues$ - $ - Operating expenses: Supplies and other charges148,61366,271 Personal services16,99213,688 Total operating expenses165,60579,959 Operating income (loss)(165,605)(79,959) Nonoperating revenues (expenses): Intergovernmental10,23910,770 Investment income6,54450,919 Insurance reimbursement1,456276,496 Payment to component unit - (235,000) Total nonoperating revenues (expenses)18,239103,185 Income before transfers(147,366)23,226 Transfers: Transfers out - (46,540) Change in net assets(147,366)(23,314) Net assets - January 11,718,0761,741,390 Net assets - December 31$1,570,710$1,718,076 123 Exhibit F-9 CITY OF FRIDLEY, MINNESOTA INTERNAL SERVICE FUND - SELF INSURANCE FUND COMPARATIVE STATEMENT OF CASH FLOWS For The Year Ended December 31, 2009 With comparative amounts for the year ended December 31, 2008 20092008 Cash flows from operating activities: Payment to employees($16,992)($13,688) Payment to suppliers(148,613)(66,771) Net cash flows from operating activities(165,605)(80,459) Cash flows from noncapital financing activites: Transfers to other funds -(46,540) Cash flows from capital and related financing activities: Intergovernmental revenue10,23910,770 Insurance reimbursement1,45641,496 Net cash flows provided from capital and related financing activities11,69552,266 Cash flows from investing activities: Investment income6,54450,919 Net increase (decrease) in cash and cash equivalents(147,366)(23,814) Cash and cash equivalents - January 11,718,0761,741,890 Cash and cash equivalents - December 31$1,570,710 $1,718,076 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) ($165,605)($79,959) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Changes in assets and liabilities: Increase (decrease) in payables -(500) Total adjustments0 (500) Net cash provided (used) by operating activities($165,605)($80,459) 124 Exhibit F-10 CITY OF FRIDLEY, MINNESOTA INTERNAL SERVICE FUND - INFORMATION SYSTEMS FUND COMPARATIVE STATEMENT OF NET ASSETS December 31, 2009 With comparative amounts for December 31, 2008 20092008 Assets: Current assets: Cash and investments$734,908$911,032 Capital assets, at cost: Property and equipment1,575,6711,404,562 Less: accumulated depreciation(1,295,017)(1,189,850) Net capital assets280,654214,712 Total assets1,015,5621,125,744 Liabilities: Current liabilities: Accounts payable12,502401 Net assets: Invested in capital assets, net of related debt280,654214,712 Unrestricted722,406910,631 Total net assets$1,003,060$1,125,343 125 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, 2009 With comparative amounts for the year ended December 31, 2008 20092008 Operating revenues: Charges for services$16,134$139,091 Operating expenses: Supplies and other charges13,02227,125 Depreciation128,702141,375 Total operating expenses141,724168,500 Operating income (loss)(125,590)(29,409) Nonoperating revenues: Investment income3,30726,735 Gain (loss) on disposal of fixed assets -(26) Total nonoperating revenues3,30726,709 Change in net assets(122,283)(2,700) Net assets - January 11,125,3431,128,043 Net assets - December 31$1,003,060$1,125,343 126 Exhibit F-12 CITY OF FRIDLEY, MINNESOTA INTERNAL SERVICE FUND - INFORMATION SYSTEMS FUND COMPARATIVE STATEMENT OF CASH FLOWS For The Year Ended December 31, 2009 With comparative amounts for the year ended December 31, 2008 20092008 Cash flows from operating activities: Receipts from interfund services provided$16,134$139,091 Payment to suppliers(921)(30,976) Net cash flows from operating activities15,213108,115 Cash flows from capital and related financing activities: Acquisition of capital assets(194,644)(101,386) Proceeds from sale of capital assets -(26) Net cash flows from capital and related financing activities(194,644)(101,412) Cash flows from investing activities: Investment income3,30726,735 Net increase in cash and cash equivalents(176,124)33,438 Cash and cash equivalents - January 1911,032877,594 Cash and cash equivalents - December 31$734,908$911,032 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) ($125,590)($29,409) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation128,702141,375 Changes in assets and liabilities: Increase (decrease) in payables12,101(3,851) Total adjustments140,803137,524 Net cash provided by operating activities$15,213$108,115 127 CITY OF FRIDLEY 128 HOUSING AND REDEVELOPMENT AUTHORITY COMPONENT UNIT 129 CITY OF FRIDLEY, MINNESOTA BALANCE SHEET - GOVERNMENTAL FUNDS HOUSING AND REDEVELOPMENT AUTHORITY December 31, 2009 With comparative totals for December 31, 2008 General FundHousing LoanCenter City Assets Cash and investments$2,746,417$2,984,015$3,275,901 Receivables: Accounts43,117 - - Interest10,989 - - Taxes: Unremitted - - - Delinquent16,398 - 50,069 Mortgage: Deferred - 1,208,335 - Allowance for uncollectible accounts -(75,359) - Prepaid expenses -3,638 - Due from other governments - - - Due from other funds4,175,825 - - Due from primary government - - - Land held for resale3,388,602 - - Total assets$10,381,348$4,120,629$3,325,970 Liabilities and Fund Balance Liabilities: Accounts payable$466$ - $ - Due to primary government188,149 - - Due to other governments1,335 - 200 Due to other funds - - - Deferred revenue3,405,000 - 50,069 Loan payable to primary government - - - Total liabilities3,594,950050,269 Fund balance (deficit): Reserved for debt service - - 1,717,848 Reserved for mortgage receivable - 1,208,335 - Unreserved, undesignated6,786,3982,912,2941,557,853 Total fund balance (deficit)6,786,3984,120,6293,275,701 Total liabilities and fund balance$10,381,348$4,120,629$3,325,970 130 Exhibit G-1 Other North Area / Governmental Univ. Ind. ParkLake PointeOnanGateway WestFunds Totals Governmental Funds 20092008 $2,152$472,712$773,274$5,157$1,401,967$11,661,595$13,337,736 - - - - - 43,11735,826 - - - - - 10,9895,780 - - - - - - 9,007 12,0559,0077,731 - 2,59297,852154,319 35,653 - - - - 1,243,9881,137,311 - - - - - (75,359)(55,458) - - - - - 3,6382,410 - - - - - - 107,860 - - - - - 4,175,8253,675,825 - - - - - - 535,000 192,00050,000 - 155,55475,0003,861,1564,926,000 $241,860$531,719$781,005$160,711$1,479,559$21,022,801$23,871,616 $ - $376,167$ - $ - $13,115$389,748$1,233,963 - - - - - 188,14956,932 -4736426315,1368,4178,918 - 685,303 - 1,519,1091,971,4134,175,8253,675,825 204,05559,0077,731155,55477,5923,959,0085,080,319 - - - - - - 277,560 204,0551,120,9508,3731,675,2942,067,2568,721,14710,333,517 2,152 - - - - 1,720,0003,400,000 35,653 - - - - 1,243,9881,137,311 - (589,231)772,632(1,514,583)(587,697)9,337,6669,000,788 37,805(589,231)772,632(1,514,583)(587,697)12,301,65413,538,099 $241,860$531,719$781,005$160,711$1,479,559$21,022,801$23,871,616 Fund balance reported above$12,301,654$13,538,099 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 funds2,023,5112,023,511 Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds3,959,0085,080,319 Net assets of governmental activities$18,284,173$20,641,929 131 CITY OF FRIDLEY, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS HOUSING AND REDEVELOPMENT AUTHORITY For The Year Ended December 31, 2009 With comparative totals for the year ended December 31, 2008 General FundHousing LoanCenter City Revenues: Tax increment$ - $ - $317,888 Property taxes464,228 - - Propertytaxes464,228 Investment income12,3012,1831,440 Intergovernmental revenue22,067 -17,565 Mortgage interest earnings4,45047,195 - Rental13,350 - - Sale of real estate43,117 - - Miscellaneous79620,728 - Receipt from primary government - - - TtlTotal revenues560309560,3097010670,106336893336,893 Expenditures: Personal services110,117 - - Supplies and other charges426,25961,848882 Capital outlay635,327 -2,592 Developer assistance - - - Interestexpense-6,939,- Interestexpense-6939- Payment to primary government - - 86,594 Total expenditures1,171,70368,78790,068 Excess (deficiency) of revenues over (under) expenditures(611,394)1,319246,825 Fund balance (deficit) - January 17,397,7924,119,3103,028,876 Fund balance (deficit) - December 31$6,786,398$4,120,629$3,275,701 132 Exhibit G-2 Other North Area / Governmental Univ. Ind. ParkLake PointeOnanGateway WestFunds Totals Governmental Funds 20092008 $ - $849,172$381,392$10,892$457,236$2,016,580$3,329,289 - - - - - 464 ,228367,942 464,228367,942 437 - - 529016,656504,340 - - - 40811,86451,90446,959 - - - - - 51,64552,553 - - - - - 13,3509,600 - - - - - 43,11771,891 - - - - - 21,52432,785 - - - - - - 535,000 437437849,172381,39211,305469,3902,679,0044,950,3598491723813921130546939026790044950359 - - - - - 110,117107,214 6812,1681,32410,32429,702533,188543,500 - - - - 90638,0094,923,949 - 764,255 - - 86,446850,701671,333 ----- 6,939,16,547, -----693916547 1,689,901 - - - - 1,776,4951,859,465 1,690,582766,4231,32410,324116,2383,915,4498,122,008 (1,690,145)82,749380,068981353,152(1,236,445)(3,171,649) 1,727,950(671,980)392,564(1,515,564)(940,849)13,538,09916,709,748 $37,805($589,231)$772,632($1,514,583)($587,697)$12,301,654$13,538,099 Amounts reported for governmental activities in the statement of activities (Exhibit A-2) are different because: Net changes in fund balances - total above($1,236,445)($3,171,649) Governmental funds reported capital outlays as expenditures to purchase land. However, in the statement of activities, these expenditures are not shown because the asset is recorded on the statement of net assets.317,9204,340,773 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds(1,,439,,231)(6,,099) resourcesarenotreportedasrevenuesinthefunds(1439231)(6099) Change in net assets of governmental activities (Exhibit A-2)($2,357,756)$1,163,025 133 CITY OF FRIDLEY, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS HOUSING AND REDEVELOPMENT AUTHORITY December 31, 2009 With comparative totals for December 31, 2008 University / McGlynn WinfieldGateway EastOsborneBakeries Assets Cash and investments$190,810$51,134$66,530$40,460 Due from other governments - - - - Receivables: Taxes: Unremitted - - - - Delinquent8203239 - Land held for resale - - - - Total assets$191,630$51,137$66,769$40,460 Liabilities and Fund Balance Liabilities: Accounts payable$ - $ - $ - $ - Due to primary government - - - - Due to other governments417799845834 Due to other funds - 824,653107,000104,000 Deferred revenue8203239 - Total liabilities1,237 825,455 108,084 104,834 Fund balance (deficit): Unreserved, undesignated190,393(774,318)(41,315)(64,374) Total fund balance (deficit)190,393 (774,318)(41,315)(64,374) Total liabilities and fund balance$191,630$51,137$66,769$40,460 134 Exhibit G-3 Satellite Lane 57th Avenue HousingGateway Totals Nonmajor Capital Project Apts.RedevelopmentTIF #19Replacement #1NorthEast Funds 20092008 $57,705$17,481$72,958$304,889$600,000$1,401,967$782,551 - - - - - - 11,708 - - - - - - 89 -182648526482,5923 - - - 75,000 - 75,00075,000 $57,705$17,663$73,606$379,941$600,648$1,479,559$869,351 $ - $13,115$ - $ - $ - $13,115$359,123 - - - - - - - 754428417642 - 5,1364,661 162,000128,76045,000 - 600,0001,971,4131,371,413 -18264875,05264877,59275,003 162,754 142,485 46,065 75,694 600,648 2,067,256 1,810,200 (105,049)(124,822)27,541304,247 - (587,697)(940,849) (105,049)(124,822)27,541 304,247 0 (587,697)(940,849) $57,705$17,663$73,606$379,941$600,648$1,479,559$869,351 135 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, 2009 With comparative totals for the year ended December 31, 2008 University / McGlynn WinfieldGateway EastOsborneBakeries Revenues: Tax increment$71,309$41,479$66,941$40,452 Investment income - - - 12 Intergovernmental revenue -4,819 - - Total revenues71,30946,29866,94140,464 Expenditures: Supplies and other charges1,0991,4811,5271,516 Developer assistance - - - - Payment to primary government - - - - Capital outlay - - 90 - Total expenditures1,0991,4811,6171,516 Excess (deficiency) of revenues over (under) expenditures70,21044,81765,32438,948 Fund balance (deficit) - January 1120,183(819,135)(106,639)(103,322) Fund balance (deficit) - December 31$190,393($774,318)($41,315)($64,374) 136 Exhibit G-4 Housing Satellite Lane 57th Avenue ReplacementGateway Totals Nonmajor Capital Project Apts.RedevelopmentTIF #19#1NorthEastFunds 20092008 $47,549$29,426$132,229$27,851$ - $457,236$309,581 110 - - 168 - $29033,770 4,529 - - 2,516 - $11,86411,708 52,18829,426132,22930,5350469,390355,059 1,4361,1101,26820,265 - 29,702196,250 - 26,48359,963 - - 86,44624,246 - - - - - - 40,065 - - - - - 901,825,022 1,43627,59361,23120,2650116,2382,085,583 50,7521,83370,99810,2700353,152(1,730,524) (155,801)(126,655)(43,457)293,977 - (940,849)789,675 ($105,049)($124,822)$27,541$304,247$0($587,697)($940,849) 137 CITY OF FRIDLEY 138 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. 139 Exhibit H-1 CITY OF FRIDLEY, MINNESOTA STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For The Year Ended December 31, 2009 BalanceBalance January 1,December 31, 2009AdditionsDeletions2009 Six Cities Watershed Assets: Cash and investments$32,501$6,156$14,090$24,567 Receivables: Taxes: Unremitted52 - 2032 Delinquent170123 - 293 Total assets$32,723$6,279$14,110$24,892 Liabilities: Due to other governments$32,723$0$7,831$24,892 Hotel/Motel Tax Assets: Cash and investments($108)$31,855$31,835($88) Receivables: Accounts2,1481,7462,1481,746 Total assets$2,040$33,601$33,983$1,658 Liabilities: Due to other governments$2,040$1,658$2,040$1,658 Totals Assets: Cash and investments$32,393$38,011$45,925$24,479 Receivables: Accounts2,1481,7462,1481,746 Taxes: Unremitted52 - 2032 Delinquent170123 - 293 Total assets$34,763$39,880$48,093$26,550 Liabilities: Due to other governments$34,763$1,658$9,871$26,550 140 III. STATISTICAL SECTION (UNAUDITED) 141 CITY OF FRIDLEY 142 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 Trends144 These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity154 These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property tax. Debt Capacity159 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 Information163 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. 143 Table 1 Page 1 of 2 CITY OF FRIDLEY, MINNESOTA NET ASSETS BY COMPONENT (1) Last Seven 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$59,043,515 144 Table 1 Page 2 of 2 2006200720082009 $18,635,605$18,245,265$17,490,936$16,141,958 1,591,936 1,711,255 2,193,410 2,790,220 15,140,831 17,244,490 18,845,006 20,276,252 $35,368,372$37,201,010$38,529,352$39,208,430 $17,354,621$16,951,085$16,381,443$15,036,932 - - - - 7,955,4267,722,4587,869,1858,308,078 $25,310,047$24,673,543$24,250,628$23,345,010 $35,990,226$35,196,350$33,872,379$31,178,890 1,591,936 1,711,255 2,193,410 2,790,220 23,096,257 24,966,948 26,714,191 28,584,330 $60,678,419$61,874,553$62,779,980$62,553,440 145 Table 2 Page 1 of 4 CITY OF FRIDLEY, MINNESOTA CHANGES IN NET ASSETS (1) Last Seven 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 Interest on long-term debt 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$16,473,516 146 Table 2 Page 2 of 4 2006200720082009 $4,177,829$4,074,480$3,646,436$3,324,698 6,023,3356,260,8066,774,6106,847,571 3,868,5174,208,7654,771,7485,065,178 1,118,661863,8501,479,4551,036,549 1,147,9661,312,5021,303,0631,605,306 397,036416,850377,884342,555 16,733,34417,137,25318,353,19618,221,857 4,793,4194,920,5114,937,7764,654,811 2,138,3712,279,0342,378,1012,423,129 3,629,3613,798,0534,065,8994,350,576 331,039381,944373,989399,349 10,892,19011,379,54211,755,76511,827,865 $27,625,534$28,516,795$30,108,961$30,049,722 $1,468,699$1,600,769$1,733,1601,443,361 609,721709,209759,892690,115 197,96849,39964,04223,034 470,733656,674510,908523,508 346,382381,432376,621347,044 - 1,304,510930,593818,805930,765 1,919,108834,7482,078,5721,476,989 6,291,7835,030,7546,209,6095,724,615 5,136,0295,252,9105,275,4674,973,000 1,929,5731,990,0472,110,6212,419,400 3,345,0173,461,6153,873,8063,784,000 391,032392,016404,562457,862 514 - - - - - - - 10,802,16511,096,58811,664,45611,634,262 $17,093,948$16,127,342$17,874,065$17,358,877 147 Table 2 Page 3 of 4 CITY OF FRIDLEY, MINNESOTA CHANGES IN NET ASSETS (1) Last Seven fiscal years (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. 148 Table 2 Page 4 of 4 2006200720082009 ($10,441,561)($12,106,499)($12,143,587)($12,497,242) (90,025)(282,954)(91,309)(193,603) (10,531,586)(12,389,453)(12,234,896)(12,690,845) $8,253,653$8,986,924$9,068,718$9,175,888 2,623,4073,152,4213,240,0813,390,633 998,1541,111,116687,66596,817 3,35759,438(24,802)12,982 1,60329,238267 - 600,000600,000500,000500,000 12,480,17413,939,13713,471,92913,176,320 281,316245,172168,39425,908 5,0001,278 -(237,923) - - - - (600,000)(600,000)(500,000)(500,000) (,)(,)(,)(,) (313,684)(353,550)(331,606)(712,015) $12,166,490$13,585,587$13,140,323$12,464,305 $2,038,613$1,832,638$1,328,342$679,078 (403,709)(636,504)(422,915)(905,618) $1,634,904$1,196,134$905,427($226,540) 149 Table 3 Page 1 of 2 CITY OF FRIDLEY, MINNESOTA FUND BALANCES, GOVERNMENTAL FUNDS (1) Last Seven fiscal years (Modified accrual basis of accounting) 200320042005 General Fund: Reserved$43,502$83,822$81,662 Unreserved: General fund4,338,4634,080,0124,020,285 Designated for employee benefits - - - Designated for contingencies - - - Undesignated - - - Total general fund$4,381,965$4,163,834$4,101,947 All other governmental funds: Reserved for: Long-term receivables$645,330$541,244$480,123 Public safety -1,155,225688,214 Debt service609,992509,547389,197 Unreserved, reported in: Special revenue funds2,172,012541,7481,098,995 Capital projects funds6,490,4287,001,3906,881,523 Debt service5,508,8085,522,6475,976,888 Total all other overnmental funds$15,426,570$15,271,801$15,514,940 g g$5,6,50$5,,80$5,5,90 (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. 150 Table 3 Page 2 of 2 2006200720082009 $77,476$65,528$48,561$58,928 3,863,0235,206,7784,538,2244,600,988 - - - - - - - - - - - - $3,940,499$5,272,306$4,586,785$4,659,916 $415,908$348,441$277,560$ - 203,13120,72625,590 - 721,8661,214,5191,564,2171,734,624 1,106,6231,189,1401,258,9261,329,647 6,963,5245,223,5635,944,5565,056,148 5,991,1026,201,3505,976,5115,801,686 $15,402,154$14,197,739$15,047,360$13,922,105 $5,0,5$,9,39$5,0,360$3,9,05 151 Table 4 Page 1 of 2 CITY OF FRIDLEY, MINNESOTA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS (1) Last Seven 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. ereore,normaonor years proros no avaae. Thfiftifit2003itilbl 152 Table 4 Page 2 of 2 2006200720082009 $8,220,943$8,927,963$9,052,719$9,072,267 691,764635,817589,790665,038 876,9031,080,787946,285965,363 2,663,9091,872,6432,742,9813,140,553 1,855,1771,830,4162,015,7962,021,708 261,535298,359316,646255,014 828,877920,850560,62974,840 23,21319,96216,5476,939 2,154,6562,288,3092,220,2762,043,252 17,875,10617,576,977 18,461,669 18,244,974 3,567,5033,893,9523,338,2283,086,441 5,821,5235,999,5576,323,9106,446,714 2,944,9113,025,1573,406,4683,376,641 1,113,543861,8721,189,033895,057 1,118,3921,194,2901,366,1541,301,140 1,555,0001,825,0002,075,0002,215,000 330,431359,010379,340366,500 ,,,, 31,74242,9869,1391,801 4,452,5003,114,2032,684,9382,144,649 - - - - 20,935,545 20,316,027 20,772,210 19,833,943 (3,358,568) (2,440,921) (2,310,541) (1,588,969) - - - - 2,505,0001,910,0001,915,000 - (30,720) - - - 10,05458,31313,10136,845 4,966,400600,0003,926,5632,500,421 (4,366,400) -(3,380,023)(2,000,421) 3,084,334 2,568,313 2,474,641 536,845 ($274,234)$127,392$164,100($1,052,124) 11.6%12.9%13.6%14.6% 9.2%11.0%11.9%13.0% 153 Table 5 Page 1 of 2 CITY OF FRIDLEY, MINNESOTA TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years Commercial/ FiscalResidentialIndustrialPublicAll YearPropertyPropertyUtilityOther 2000 2001 Information Not Availiable 2002 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 Source: Continuing Disclosure Document 154 Table 5 Page 2 of 2 Less: TotalFiscalAdjustedTotalEstimatedTax Capacity TaxDisparityTax CapacityDirect TaxMarketas a Percent CapacityContributionValueRateValueof EMV $25,967,424$4,312,759$21,654,66517.070$1,335,542,900119.92% 29,851,6804,769,07425,082,60616.3501,518,347,800119.01% 22,380,1593,223,21419,156,94529.9061,688,141,100116.83% 25,007,7893,579,12821,428,66128.6161,958,021,100116.70% 27,336,7264,292,06123,044,66530.2482,149,055,100118.62% 28,946,1684,624,09124,322,07733.5652,278,619,300119.01% 31,367,7404,115,59527,252,14531.9412,469,670,100115.10% 33,857,8654,587,79428,341,51431.3492,616,727,300119.46% 35,556,4695,221,35530,303,83230.3242,701,388,800117.33% 36,000,4765,757,07331,758,133 28.6402,698,943,700113.36% 155 Table 6 Page 1 of 2 CITY OF FRIDLEY MINNESOTA DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES Last Ten Fiscal Years SchoolSchoolSchool FiscalDistrictDistrictDistrict YearCityNo. 11No. 13No. 14 200116.350%52.281%47.452%45.466% 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% 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. 156 Table 6 Page 2 of 2 SchoolTotalSchoolSchoolSchoolSchool DistrictSpecialDistrictDistrictDistrictDistrict (1)(2, 4)(3)(3, 4)(1, 3) No. 16No. 11No. 13No. 14No. 16 CountyDistricts 39.458%28.859%8.218%106.287%101.819%99.833%94.139% 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% 157 Table 7 CITY OF FRIDLEY, MINNESOTA PRINCIPAL PROPERTY TAXPAYERS Current year and nine years ago 2009 2000 Percentage Percentage Taxableof Total CityTaxableof Total City CapacityCapacityCapacityCapacity TaxpayerValueRankValueValueRankValue Medtronic, Inc.$1,885,05215.24%$933,02323.59% TargetCorporation732,286 2 2.03%1,138,824 1 4.39% Shamrock Investments485,650 3 1.35%395,276 5 1.52% Retail Trust IV (Wal-Mart/Sam's)411,386 4 1.14%352,050 7 1.36% Northwest Racquet & Swim Club307,608 50.85%370,997 6 1.43% Cummins Power (Onan)301,990 6 0.84%444,749 3 1.71% Maurice Fillister (Georgetown)274,624 7 0.76%276,838 8 1.07% University Avenue Associates266,460 8 0.74%406,490 4 1.57% Riverpointe Apartments209,704 9 0.58%212,844 9 0.82% Burlington Northern Railroad28,478 10 0.08%29,502 10 0.11% Total$4,903,23813.61%$4,560,59317.57% Total All Property$36,000,476$25,967,424 Source: City Assessor 158 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 31-DecFiscal YearAmountof LevyYearsAmountof Levy 2000$4,035,671$3,928,75297.35%$105,810$4,034,56299.97% 20014,205,000 4,147,788 98.64%56,9164,204,70499.99% 20025,613,1315,579,77799.41%31,9955,611,77299.98% 20035,825,8555,763,09798.92%61,9585,825,05599.99% 20046,483,7456,310,42997.33%172,2956,482,72499.98% 20058,067,9497,699,29095.43%365,7508,065,04099.96% 20068,757,1888,517,85597.27%231,5268,749,38299.91% 20079,200,4269,332,688(1101.44%116,4839,449,171102.70% ) 20089,527,4339,483,67499.54%10,7139,494,38799.65% 20099,472,4879,587,322(1101.21%N/A9,587,322101.21% ) (1) Excess TIF collections included of $235,704 in 2007 and $101,714 in 2009. Source: City Finance Department. 159 Table 9 Page 1 of 2 CITY OF FRIDLEY, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten fiscal years Governmental Activities Percentage of EstimatedEstimated FiscalImprovementTax IncrementMarket ValueMarket Value YearBondsBondsTotalof Propertyof Property 2000$1,070,000$13,685,000$14,755,0001.14%$1,293,664,300 2001615,00012,735,00013,350,0000.88%1,518,347,800 2002465,00011,735,00012,200,0000.72%1,688,141,100 2003315,00010,705,00011,020,0000.56%1,958,021,100 2004190,0009,595,0009,785,0000.46%2,149,055,100 20051,805,0008,335,00010,140,0000.45%2,278,619,300 20064,310,0006,780,00011,090,0000.45%2,469,670,100 20076,065,0005,110,00011,175,0000.43%2,616,727,300 20087,615,0003,400,00011,015,0000.41%2,701,388,800 20097,080,0001,720,0008,800,0000.33%2,698,943,700 160 Table 9 Page 2 of 2 Business Type Activities Total Sewer/WaterTotalPer PrimaryPer PopulationBondsBusiness TypeCustomerGovernmentCapita 28,623$5,325,000$5,325,000650$20,080,000515 27,8543,530,0003,530,00042816,880,000479 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 161 Table 10 CITY OF FRIDLEY, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT December 31, 2009 Estimated EstimatedShare of DebtPercentageOverlapping Governmental UnitOutstandingApplicableDebt Debt repaid with property taxes: Independent School District No. 11$214,431,6891.60%$3,430,907 Independent School District No. 1325,125,00031.46%7,904,325 Independent School District No. 1443,515,000100.00%43,515,000 Independent School District No. 16123,805,00036.80%45,560,240 Metro Council1,227,505,5001.19%14,607,315 Anoka County183,641,64918.04%33,128,953 Vocational/Technical District No. 9168,380,0002.21%185,198 Subtotal - overlapping debt148,331,938 City of Fridley - Direct debt$14,665,00014,190,000 Total direct and overlapping debt$162,521,938 Sources: Continuing Disclosure Document 162 Table 11 CITY OF FRIDLEY, MINNESOTA LEGAL DEBT MARGIN INFORMATION Last Ten fiscal years Market Value$2,698,943,700 Debt Limit 3% of Market Value$80,968,311 Amount of Debt Applicable to Debt Limit: Total Debt$14,665,000 Deductions: Tax Increment Redevelopment Bonds$1,720,000 Improvement Bonds7,080,000 Revenue Bonds5,865,00014,665,000 Total Amount of Debt Applicable to Debt Limit - Legal Debt Margin$80,968,311 Legal Debt Margin Calculation for the last 10 Fiscal Years Net DebtLegalAmount of Debt FiscalDebtApplicable toDebtApplicable to YearLimitLimitMarginDebt Limit 2000$26,327,646$ - $26,327,6460.00% 200129,985,162 - 29,985,1620.00% 200233,380,154 - 33,380,1540.00% 200338,755,912 - 38,755,9120.00% 200442,589,016 - 42,589,0160.00% 200545,168,942 - 45,168,9420.00% 200649,393,402 - 49,393,4020.00% 200752,334,546 - 52,334,5460.00% 200854,027,776 - 54,027,7760.00% 200980,968,311 - 80,968,3110.00% 163 Table 12 Page 1 of 2 CITY OF FRIDLEY, MINNESOTA PLEDGED REVENUE COVERAGE Last Ten fiscal years Improvement BondsUtility Revenue Bonds SpecialUtilityLess FiscalAssessmentDebt ServiceServiceOperating YearCollectionsPrincipalInterestCoverageRevenuesExpenses 2000$507,953$225,000$51,8741.83$5,150,374$4,965,373 2001497,208230,00039,7701.844,994,6695,148,461 2002463,579150,00029,6082.585,016,2335,251,371 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 2009658,406535,000270,0050.826,611,6116,951,906 164 Table 12 Page 2 of 2 Utility Revenue BondsTax Increment Bonds Net Tax AvaliableDebt ServiceIncrementDebt Service RevenuePrincipalInterestCoverageCollectionsPrincipalInterestCoverage $185,001$1,445,000$197,2770.11$2,819,343$75,000$701,1893.63 (153,792)350,000175,115-0.293,145,594875,000697,7012.00 (235,138)360,000158,422-0.452,564,0401,000,000654,6641.55 (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)575,000221,449-0.432,016,5801,680,00096,4951.14 165 Table 13 CITY OF FRIDLEY, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten fiscal years Total Per Capita FiscalUnemploymentPersonalPersonal YearPopulationRateIncomeIncome 200027,4492.8%$696,024,293$25,357 200127854,36%.724064730,,25995, 20012785436%72406473025995 200227,8774.4%789,588,14828,324 200327,4604.3%622,985,02022,687 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 Sources: Metropolitan Council (population), Continuing Disclosure Document (unemployment rate) 166 Table 14 CITY OF FRIDLEY, MINNESOTA PRINCIPAL EMPLOYERS Current year and nine years ago 2009200920002000 Percentage Percentage of Total Cityof Total City EmployerEmployeesRankEmploymentEmployeesRankEmployment Medtronic, Inc.2,500117.43%217018.26% 1,8002 12.55%147325.61% United Defense Systems CumminsPower(Onan)1727,31204%.13623519%. CumminsPower(Onan)172731204%13623519% Unity Medical Center1,4004 9.76%47481.81% Target6005 4.18%38491.46% 5006 3.49%67742.58% Minco Products Kurt Manufacturing3507 2.44%65052.48% Park Construction3008 2.09% - 0.00% Parsons Electric3009 2.09%50071.90% 26210 1.83% - 0.00% Wal-Mart Burlington -0.00%65062.48% McGlynn's -0.00%377101.44% Total9,73967.90%8,71733.20% Total City Employment14,34426,257 Source: Continuing Disclosure Documents, Minnesota Department of Employment and Economic Development and the Met Council. 167 Table 15 Page 1 of 2 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/Program2000200120022003 General government: City Administration4344 Finance21242424 Human Resource2222 Community Development9101010 Public safety: Police department49505050 Fire department7889 Public works: Administration5555 Engineering4433 Mechanic3333 Streets9999 Water6666 Sewer5655 Parks6667 Parks and recreation: Recreation and Naturalist8889 Total138144143146 Source: City Finance Department 168 Table 15 Page 2 of 2 Full-Time Equivalent Employees as of December 31, 200420052006200720082009 333333 232323222219 222222 8810797 464647444445 889988 444222 222444 333333 999999 555555 555555 777777 5811888 130133140130131127 169 Table 16 Page 1 of 2 CITY OF FRIDLEY, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years Fiscal Year Function/Program200020012002 Police: Physical arrests1,3291,6451,447 Parking violations1,344513635 Traffic violations1,7241,4352,209 Fire: Emergency responses2,2942,2932,557 Fires occurred113105144 Inspections (Fire and Rental)3231,1451,427 Refuse collection: Recyclables collected (tons per day)6.896.806.75 Building inspection: Permits issued: Residential836667730 Commercial967052 Total permit valuation$101,645,877$21,808,039$11,619,328 Otherublic works: p Otherpublicworks: Street resurfacing (miles)1.31.21.2 Water: Connections8,1958,2098,254 Storage capacity (gallons)6,500,0006,500,0006,500,000 Average daily demand (gallons)550,000550,000550,000 Peak daily demand (gallons)9,000,0009,000,0009,000,000 Sewer: Connections8,1858,2198,263 170 Table 16 Page 2 of 2 Fiscal Year 2003200420052006200720082009 1,3339561,2051,2921,2901,3571,305 532644884572792419382 2,4292,1291,7895,1524,0354,9942,934 2,5492,4062,7192,5682,8042,8272,864 124137107127109116141 1,4251,6511,4671,0155,6931,9941,909 6.706.706.696.956.966.126.47 6426247507681,2061,4441,599 659986115366418386 $16,078,198$22,029,469$25,057,537$21,750,596$47,871,624$39,105,158$45,564,657 1.21.24.14.83.74.14.9 8,2798,2888,2328,2358,2308,233 6,500,0006,500,0006,500,0006,500,0006,500,0006,500,0006,500,000 550,000646,000550,000550,0004,270,0004,270,0004,400,000 9,000,00013,190,00010,000,00010,990,00010,990,00010,800,0009,200,000 8,2888,2978,2508,2448,2388,2428,238 171 Table 17 Page 1 of 2 CITY OF FRIDLEY, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Fiscal Years Fiscal Year Function/Program2000200120022003 Police: Stations1111 Squad cars11111212 Fire stations3333 Other public works: Streets (miles)125.3125.3125.3125.3 Highways (miles)10.310.310.310.3 Streetlights1,0541,0541,0541,054 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 hydrants998998998998 Storage capacity (gallons)6.5 million6.5 million6.5 million6.5 million Wastewater: Sanitary sewers (miles)103.0103.0103.0103.0 Storm sewers (miles)49.349.349.349.3 Sources: Various City departments. 172 Table 17 Page 2 of 2 Fiscal Year 200420052006200720082009 111111 121212121212 333333 125.3125.3125.3125.3125.3125.3 10.310.310.310.310.310.3 1,0541,0551,0551,0591,0591,059 353536363636 682682682682682682 292929292929 222222222222 222222 111111 112.9112.9113.0113.0113.0113.0 9981,0121,0131,0131,0131,013 6.5 million6.5 million6.5 million6.5 million6.5 million6.5 million 103.0103.0103.0103.0103.0103.0 49.350.052.052.052.052.0 173 CITY OF FRIDLEY 174