2004 CAFR COMPREHENSIVE ANNUAL
FINANCIAL REPORT
CITY OF FRIDLEY
MINNESOTA
FOR THE YEAR ENDED DECEMBER 31, 2004
CITY OF FRIDLEY, MINNESOTA
Comprehensive Annual Financial Report
December 31, 2004
Prepared by:
Finance Department
Richard D. Pribyl
Finance Director
-This page intentionally left blank-
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2004
TABLE OF CONTENTS
EXHIBIT PAGE
I. INTRODUCTORY SECTION
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting 11
Elected and Appointed Officials 13
City Administrative Organizational Structure 2004 14
II. FINANCIAL SECTION
Independent Auditor's Report 19
Management's Discussion and Analysis 23
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets A-1 35
Statement of Activities A-2 36
Fund Financial Statements:
Balance Sheet- Governmental Funds A-3 38
Statement of Revenues, Expenditures, and Changes in Fund Balances-
Governmental Funds A-4 40
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds A-5 43
Statement of Net Assets- Proprietary Funds A-6 44
Statement of Revenues, Expenses, and Changes in Fund Net Assets-
Proprietary Funds A-7 46
Statement of Cash Flows- Proprietary Funds A-8 48
Statement of Fiduciary Net Assets A-9 50
Notes to Financial Statements 51
Required Supplementary Information:
Budgetary Comparison Schedule-General Fund B-1 84
Budgetary Comparison Schedule- Grant Management Fund B-2 88
Budgetary Comparison Schedule- Note to RSI 89
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet-Nonmajor Governmental Funds C-1 100
Combining Statement of Revenues, Expenditures and Changes in Fund Balances-
Nonmajor Governmental Funds C-2 101
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2004
TABLE OF CONTENTS
EXHIBIT PAGE
Subcombining Balance Sheet- Nonmajor Special Revenue Funds C-3 102
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances- Nonmajor Special Revenue Funds C-4 104
Special Revenue Funds:
Cable TV Fund:
Comparative Balance Sheet D-1 106
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual D-2 107
Solid Waste Abatement Fund:
Comparative Balance Sheet D-3 108
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual D-4 109
HRA Reimbursement Fund:
Comparative Balance Sheet D-5 110
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual D-6 111
Drug and Gambling Forfeiture Fund:
Comparative Balance Sheet D-7 112
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual D-8 113
F. C. C. Donations Fund:
Comparative Balance Sheet D-9 114
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual D-10 115
Police Activity Fund:
Comparative Balance Sheet D-11 116
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual D-12 117
Capital Project Fund:
Capital Improvement Fund:
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual E-1 118
Internal Service Funds:
Combining Statement of Net Assets F-1 120
Combining Statement of Revenues, Expenses and Changes in Net Assets F-2 121
Combining Statement of Cash Flows F-3 122
Employee Benefits Fund:
Comparative Statement of Net Assets F-4 123
Comparative Statement of Revenues, Expenses and Changes in Net Assets F-5 124
Comparative Statement of Cash Flows F-6 125
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2004
TABLE OF CONTENTS
EXHIBIT PAGE
Self Insurance Fund:
Comparative Statement of Net Assets F-7 126
Comparative Statement of Revenues, Expenses and Changes in Net Assets F-8 127
Comparative Statement of Cash Flows F-9 128
Information Systems Fund:
Comparative Statement of Net Assets F-10 129
Comparative Statement of Revenues, Expenses and Changes in Net Assets F-11 130
Comparative Statement of Cash Flows F-12 131
Housing and Redevelopment Authority(Component Unit):
Balance Sheet-Governmental Funds G-1 134
Statement of Revenues, Expenditures and Changes in
Fund Balances-Governmental Funds G-2 136
Combining Balance Sheet-Nonmajor Governmental Funds G-3 138
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds G-4 139
Subcombining Balance Sheet- Nonmajor Capital Project Funds G-5 140
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances- Nonmajor Capital Project Funds G-6 142
Agency Funds:
Statement of Changes in Assets and Liabilities H-1 146
III. STATISTICAL SECTION (Unaudited)
Government-Wide Information:
Government-Wide Expenses By Function 1 148
Government-Wide Revenues 2 150
General Government Expenditures by Function -Last Ten Fiscal Years 3 152
General Revenue by Source- Last Ten Fiscal Years 4 153
Certified Property Tax Levies and Collections- Last Ten Fiscal Years 5 155
Estimated Market Value and Taxable Value of All Property-
Last Ten Fiscal Years 6 156
Significant Minnesota Tax Policies 7 159
Tax Capacity Rates- Direct and Overlapping Governments- Last Ten Fiscal Years 8 160
Special Assessment Levies and Collections- Last Ten Fiscal Years 9 163
History of Certified Tax Levies and Tax Rates- Last Ten Fiscal Years 10 164
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2004
TABLE OF CONTENTS
EXHIBIT PAGE
Ratio of Net General Bonded Debt to Taxable Value and Net Bonded Debt Per
Capita - Last Ten Fiscal Years 11 167
Computation of Legal Debt Margin 12 168
Computation of Direct and Overlapping Bonded Debt and Comparative
Debt Ratios 13 170
Ratio of Annual Debt Service Expenditures for General Bonded Debt to
Total General Government Expenditures- Last Ten Fiscal Years 14 171
Revenue Bond Coverage- Last Ten Fiscal Years 15 172
Demographic Statistics-Last Ten Fiscal Years 16 173
Construction and Property Value- Last Ten Fiscal Years 17 174
Principal Taxpayers 18 175
Insurance Coverage 19 176
Miscellaneous Statistical Information 20 177
General Information 21 180
I. INTRODUCTORY SECTION
1
-This page intentionally left blank-
2
CIIYOF
FRIDLEY
FRIDLEY MUNICIPAL CENTER • 6431 UNIVERSITY AVE.N.E.FRIDLEY,MN 55432
(763)571-3450 • FAX(763)571-1287 • TTD/TTY(763)572-3534
June 10, 2005
Dr. William W. Burns, City Manager
Mayor Scott J. Lund and Council Members
Fridley, Minnesota 55432
Dear Dr. Burns, Mayor Lund, and Council Members:
The Comprehensive Annual Financial Report of the City of Fridley, Minnesota, for the fiscal
year ended December 31, 2004, is submitted herewith:
Responsibility for both the accuracy of the presented data and the completeness and fairness of
the presentation, including all disclosures, rests with the City. We believe that the data, as
presented, is accurate in all material aspects, that it is presented in a manner designed to fairly
set forth the financial position and results of operations of the City as measured by the
financial activity of its various funds, and that all disclosures necessary to enable the reader to
gain the maximum understanding of the City's financial activity have been included.
The Comprehensive Annual Financial Report is presented in three sections: Introductory,
Financial, and Statistical. The Introductory Section includes this transmittal letter, the City's
organizational chart, a list of principal officials, and a reproduction of the Certificate of
Achievement for the prior year. The Financial Section includes: 1) independent auditor's
opinion; 2) management's discussion and analysis; 3) government-wide and fund financial
statements; 4) notes to the financial statements; 5) required supplemental information; and 6)
combining and individual fund statements and schedules. The Statistical Section includes
tables and reports of various economic, social, financial and fiscal data designed to reflect
trends and ratios.
Generally accepted accounting principles require that management provide a narrative
introduction, overview, and analysis to accompany the basic financial statements in the form of
Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to
complement the MD&A and should be read in conjunction with it. The City of Fridley's
MD&A can be found immediately following the report of the independent auditors_
3
-This page intentionally left blank-
4
CITY OF FRIDLEY, MINNESOTA
All City funds, departments, commissions and other organizations for which the City of
Fridley is financially accountable are presented within the Comprehensive Annual Financial
Report. The City provides a full range of services to its citizens. These services include, but are
not limited to, police and fire protection; water and sanitary sewer utilities; the construction
and maintenance of streets and infrastructure; recreational facilities; and general administrative
services. The Housing and Redevelopment Authority (HRA) is included in the reporting entity
as a component unit of the City, because the governing board is appointed by the City Council,
and because of the City's relationship of financial benefit or burden with the authority.
In June, 1999, the Governmental Accounting Standards Board (GASB) issued Statement 34.
This standard is the most comprehensive governmental accounting rule ever developed. This
standard substantially changes the way state and local governments report their financial
activity. The City implemented these changes in 2003. For 2004, the financial statements
include comparative information and include information for 2003 and 2004. A summary of
the most notable changes that were also included in the 2003 statements are as follows:
1. Government-wide financial statements are prepared using full accrual accounting.
2. Basic fund financial statements present major funds instead of fund types.
3. Budgetary comparisons include original and amended budgets.
4. All infrastructure has been capitalized and all capital assets are depreciated.
5. A management's discussion and analysis is included as required supplemental
information.
ECONOMIC CONDITION AND OUTLOOK
BACKGROUND AND LOCATION
The City of Fridley is a first ring suburban community with an estimated 2004 population of
27,480. The City is located 10 minutes north of downtown Minneapolis and 25 minutes
northwest of downtown St. Paul. Incorporated in July of 1949, Fridley covers 11 square miles
of area and is now home to some of the most important industries in the Midwest, nation, and
the world. An industrial spine around the rail corridor has served the City well and has
provided the City with nearly as many jobs as the number of citizens who reside in the
community. Fridley is home to the largest number of employees in Anoka County.
LOCAL ECONOMY
The local economy has followed that of the national economy over the past year, and as a
result, the number of manufacturing jobs has declined; however, the number of service jobs has
increased. The unemployment rate for the City however, is still below that of the national
average.
The value of new construction for 2004 increased significantly from 2003 levels.
5
CITY OF FRIDLEY, MINNESOTA
ECONOMIC CONDITION AND OUTLOOK (CONTINUED)
Continued long-term growth is anticipated as Fridley continues to aggressively pursue
redevelopment opportunities. Property values have continued to increase with an overall
increase of 8% in estimated market value for all properties in Fridley, and a 13% increase in
estimated market value for homesteaded residential property.
MAJOR INITIATIVES
For the Year
The City has many accomplishments to report for 2004. The following list is a summary
of the major initiatives completed throughout the year.
1. The City reconstructed streets in the southeast and central sections of the
City. This project work included new concrete curb and gutter, new base
and asphalt, and water and sewer repairs as necessary. The final cost of
these projects was approximately $1,100,000.
2. Well #13 was repaired as part of the City's preventive maintenance
program. This program helps to ensure a constant water supply for the
City.
3. The City continued installing AMR(automated meter reading) devices on
some of its more difficult to read commercial meters.
4. The Marion Hills Water Reservoir was completely rebuilt.
5. The City took advantage of low interest rates and refinanced two bond
issues.
6. The City maintained an Aal credit rating from Moody's.
For the Future
The future for the City of Fridley may be filled with change and restructuring depending on
future legislative actions that may change the state's tax structure, municipal redevelopment
methods, and revenue streams. Traditional level of service is a concern as the City looks at
potential reductions in revenue from traditional redevelopment practices and local government
aid actions at the State Capitol. The City will continue to investigate alternatives that will
allow creative solutions to the delivery of services.
The City of Fridley will embark on the complimentary anchor to the Gateway East
development with a project called Gateway West, which will likely provide an additional
6
CITY OF FRIDLEY, MINNESOTA
ECONOMIC CONDITION AND OUTLOOK(CONTINUED)
five single-family units. The importance of this small development is the balance and positive
image it will provide as people enter the community on University Avenue from the south.
Finally, a proposal by the North Star Corridor Development Authority proposes to connect
Fridley to the region through the use of the existing Burlington Northern Santa Fe rail lines and
new convenient passenger rail cars continues to move forward. The proposal would offer an
alternative mode of transportation for residents who are commuting into the Minneapolis area
from the north. Additional neighborhood and rail compatible development may occur on the
remaining acreage near the Fridley station site.
Significant projects budgeted for 2005 in the five-year capital improvement plan include: the
purchase of a combination pumper and ladder fire truck; an accelerated program to reconstruct
streets; soil cleanup below the municipal garage fueling station; and the annual well, reservoir,
and pump house maintenance programs.
FINANCIAL INFORMATION
INTERNAL CONTROLS
In developing and improving the City's accounting system, consideration is given to the
adequacy of internal accounting controls. Internal accounting controls are designed to provide
reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from
unauthorized use or disposition and the reliability of financial records for preparing financial
statements and maintaining accountability for assets. The concept of reasonable assurance
recognizes that the cost of a control should not exceed the benefits likely to be derived and the
evaluation of costs and benefits requires estimates and judgments by management.
All internal control evaluations occur within the above framework. We believe that the City's
internal accounting controls adequately safeguard assets and provide reasonable assurance of
the proper recording of financial transactions.
BUDGETARY CONTROLS
A complete budgetary system of accounts is maintained for the General and Special Revenue
Funds. Budgetary control is maintained in compliance with the City Charter requirements.
The Charter provides that it is the duty of the City Manager to strictly enforce the provisions of
the budget. The management policy of the City is such that the existence of a particular item
or appropriation in the approved budget does not mean that it will or must be automatically
expended. It is the policy of the City to control budgets at the expenditure category level.
Budget adjustments between City divisions are made upon the approval of a resolution by the
City Council. The City Charter provides that the City Council shall not have power to increase
7
CITY OF FRIDLEY, MINNESOTA
FINANCIAL INFORMATION (CONTINUED)
the total amount of the budget, whether by insertion of new items or otherwise, beyond the
estimated revenue unless the actual revenue exceeds such revenue estimates, and in that event
not beyond such actual revenue. There is a constant review process.
Expenditures are not approved until it has been determined that 1)the expenditure is necessary,
2) adequate funds have been appropriated, and 3) funds are available.
CASH MANAGEMENT
All temporary cash surpluses during the year are invested in various securities that State
statutes permit. The City's policy is to invest all available monies at competitive interest rates
in accordance with the City's over-all fiscal plan coordinated with operating needs and
programs projected over the ensuing 12-month period. Investment yields on investments held
during the year ranged from 1.5%to 6.0%.
RISK MANAGEMENT
The Self-Insurance Fund was set up to account for all revenues and expenditures associated
with the $50,000 deductible on the general liability policy. Self-insuring a larger deductible
has reduced the annual premiums that allow us to directly benefit from our good experience
rating. In the future an analysis will be made of the feasibility of self-insuring all or a portion
of other policies. In 1990, $1,000,000 was transferred from the General Fund to the Self-
Insurance Fund.
OTHER INFORMATION
PENSIONS
City of Fridley employees are covered by one of three pension plans:
1. Fridley Fire Relief Association for Volunteer Firemen.
2. Public Employees Retirement Police and Fire Plan, covering the City's full-time
Firemen and Police Officers.
3. Coordinated Public Employees Retirement Plan, which covers other City civilian
employees. The employees covered by the Coordinated P.E.R.A. Plan are also covered
by Social Security.
The City is currently making all pension contributions required by law.
For additional background information on the pension plans covering City employees, see
Notes to the Financial Statements.
8
CITY OF FRIDLEY,MINNESOTA
OTHER INFORMATION (CONTINUED)
INDEPENDENT AUDIT
Section 7.13 of the City Charter requires an annual audit to be made of the books of account,
financial records and transactions of all administrative departments of the City by a certified
public accountant or the State Auditor's Office of the State of Minnesota. The accounting firm
of HLB Tautges Redpath, Ltd. was engaged by the City to render an opinion on the City's
financial statements. The auditor's report on the basic financial statements and combining and
individual fund statements and schedules is included in the Financial Section of this report.
CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Fridley, Minnesota, for its comprehensive annual financial report for the fiscal year ended
December 31, 2003. In order to be awarded a Certificate of Achievement, a government must
publish an easily readable and efficiently organized Comprehensive Annual Financial Report.
This report must satisfy both generally accepted accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current
Comprehensive Annual Financial Report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
ACKNOWLEDGMENTS
The preparation of this report on a timely basis could not have been accomplished without the
efficient and dedicated services of all members of the Finance Department, with special
recognition to Craig Ellestad, Paul Eisenmenger, Carol Meyer, and Marcy Everette and to our
auditors HLB Tautges Redpath, Ltd. for their professional guidance. We would also like to
express our appreciation to the Mayor and members of the City Council for their interest and
support in planning and conducting the financial operations of the City in a responsible and
progressive manner.
Respectfully submitted,
lu' , t
4L
D. Pribyl Alan D. Folie
Finance Director Assistant Finance Director
9
-This page intentionally left blank-
10
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Fridley,
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2003
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports(CAFRs)achieve the highest
standards in government accounting
and financial reporting.
��'��ofF�°FS
,...44
0 C A c3
coneoAAnoN s President
>�SEA���ti
!Mine
*fir/r - �f
Executive Director
11
-This page intentionally left blank-
12
CITY OF FRIDLEY, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
DECEMBER 31, 2004
ELECTED OFFICIALS
Term of Office
Expires December
Mayor Scott J. Lund 2008
Councilmember At Large Robert R. Barnette 2008
Councilmember, Ward I Steven E. Billings 2006
Councilmember, Ward II Richard P. Wolfe 2006
Councilmember, Ward III Ann R. Bolkcom 2006
APPOINTED OFFICIALS
City Manager William W. Burns
City Attorney Frederic W. Knaak
Prosecuting Attorney Carl J. Newquist
City Clerk Debra A. Skogen
Department Heads:
Finance Director/Treasurer Richard D. Pribyt
Director of Public Safety and Civil Defense Donovan W.Abbott
Fire Chief John D. Berg
Director of Public Works Jon H. Haukaas
Director of Recreation and Natural Resources Jack G. Kirk
Director of Community Development Scott J. Hickok
Director of Human Resources Deborah K. Dahl
13
CITY ADMINISTRATIVE ORGANIZATIONAL STRUCTURE 2004
City of Fridley
Total Authorized Postions (131)
CITY MANAGEMENT(3)
City Manager
Secretary to the City Manager
Cable Administrator
FINANCE(23) POLICE(46) HUMAN RESOURCES (2)
Finance Director-Treasurer Public Safety Director Human Resources Director
Secretary Secretary HR Assistant
(2)Accountants
OPERATIONS (30)
ACCOUNTING (5) Captain
Assistant Finance Director (6)Sergeants
Payroll Technician (23) Patrol Officers
Accounting Specialist
(2)Acctg-Data Processing Clerks TECHNICAL SUPPORT(14)
Captain
ASSESSING (2) (1)Sergeant
City Assessor (5) Patrol Officers
Appraiser Projects Coordinator
Crime Prevention Specialist
MIS (2) Office Supervisor
MIS Coordinator (4) Police Technicians
MIS Specialist (1 FT,4 PT benefitted=3 FTE's)
CITY CLERK-RECORDS (2) FIRE (8)
City Clerk
Receptionist-License Clerk Fire Chief
Secretary
Assistant Chief
Fire Marshal
Non-General Fund (3) Full-time Firefighters
LIQUOR(6) Rental Inspection Asst.
Liquor Operations Manager (.75 FTE w/benefits)
(5) Liquor Store Clerks
WATER ADMIN (2)
Utility Billing Clerk
Acctg-Data Processing Clerk
14
PUBLIC WORKS (35) RECREATION & COMMUNITY
NATURALIST(5) DEVELOPMENT(8)
Director of Public Works
Secretary Director of Recreation & Director of Community
Operations Analyst Natural Resources Development
Recreation Office Coordinator Secretary
ENGINEERING (2) (3)Program Supervisors
Assistant Public Works Director BUILDING INSPECTION (3)
Engineering Tech Inspector Chief Building Official
Building Inspector
PW MAINTENANCE (30) Secretary
Secretary
Lead Mechanic PLANNING (2)
(2)Mechanic, Level B Planning Coordinator
Street Supervisor Planning Assitant
(8)Public Services Worker
Water Supervisor
(4)Public Services Worker
Sewer Supervisor Non-General Fund
(4)Public Services Worker Environmental Planner
Parks Supervisor Asst. Executive Dir. HRA
(6) Public Services Worker Section 8 Advisor(NA)
NA=Not Authorized
15
-This page intentionally left blank-
16
II. FINANCIAL SECTION
17
-This page intentionally left blank-
18
H LB Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Fridley, Minnesota
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component unit, each major fund, and
the aggregate remaining fund information of the City of Fridley, Minnesota, as of and for the
year ended December 31, 2004 which collectively comprise the City's basic financial statements
as listed in the table of contents. These financial statements are the responsibility of the City of
Fridley, Minnesota's management. Our responsibility is to express opinions on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of the governmental activities, the business-type activities, the aggregate
discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City of Fridley, Minnesota, as of December 31, 2004, and the respective
changes in financial position and cash flows, where applicable, thereof for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued a report dated
June 10, 2005 on our consideration of the City of Fridley, Minnesota's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws,regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with
4810 White Bear Parkway White Bear Lake, Minnesota 55110 651 426 7000 651 426 5004 Fax www.hlbtr.com
1303 South Frontage Road Suite 13 Hastings, Minnesota 55033 651 480 4990 651 426 5004 Fax
HLB Tautges Redpath,Ltd.is a member of Mr International,a world-wide organization of accounting firms and business advisors.
19
-This page intentionally left blank-
20
Government Auditing Standards and should be considered in conjunction with this report in
considering the results of our audit.
The Management's Discussion and Analysis and the budgetary comparison information as listed
in the table of contents, are not a required part of the basic financial statements but are
supplementary information required by accounting principles generally accepted in the United
States of America. We have applied certain limited procedures,which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the
supplementary information. However, we did not audit the information and express no opinion
on it.
Our audit was made for the purpose of forming opinions on the financial statements that
collectively comprise the City of Fridley, Minnesota's basic financial statements. The
introductory section, combining and individual fund statements and schedules and statistical
tables as listed in the table of contents are presented for purposes of additional analysis and are
not a required part of the basic financial statements. The combining and individual fund
statements and schedules have been subjected to the auditing procedures applied in the audit of
the basic financial statements and, in our opinion, are fairly stated in all material respects, in
relation to the basic financial statements taken as a whole. The introductory section and
statistical tables have not been subjected to the auditing procedures applied in the audit of the
basic financial statements and accordingly, we express no opinion on them.
, q.
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
June 10, 2005
21
-This page intentionally left blank-
22
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, 2004. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter
of transmittal, which can be found on pages 3 through 9 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 $58,049,223 (Net assets). Of this amount, $23,550,557 (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.
The City's total net assets decreased by $271,230.
As of the close of the current fiscal year, the City of Fridley's governmental funds reported
combined ending fund balances of$19,435,635. Of this total amount, $14,132,072, or 73% is
designated or reserved through legal restrictions and City Council authorization.
At the end of the current fiscal year the general fund balance of $4,163,834, included
$83,822 reserved and$4,080,012 designated.
The City's total debt increased by $1,325,563 during the current fiscal year, from
$14,645,155 to $15,970,718.
Overview of the Financial Statements
This discussion and analysis is 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.
23
Management's 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 Exhibits A-1 and A-2 of this
report.
Fund financial statements. A fund is a grouping of related accounts that are 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.
24
Management's Discussion and Analysis
The City of Fridley maintains five individual major governmental funds. Information is
presented separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances for the general fund, grant
management fund, special assessment debt service fund, tax increment debt service 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 nonmajor 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 are Exhibits A-3 through A-5 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 are Exhibits A-6 through A-8 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government-wide
financial statements because the resources of those funds are not available to support the City
of Fridley's own program. The accounting used for fiduciary funds is much like that used for
proprietary funds.
The basic fiduciary fund financial statement is Exhibit A-9 of this report.
25
Management's Discussion and Analysis
Notes to the financial statements. The notes provide additional information that is essential
to a full understanding of the data provided in the government—wide and fund financial
statements. The notes to the financial statements can be found immediately following
Exhibit A-9 of this report.
Other information. The combining statements referred to earlier in connection with the
nonmajor governmental funds are presented immediately following the required
supplementary information on budgetary comparisons. Combining and individual fund
statements and schedules can be found on Exhibits B-1 through H-1 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
$58,049,223 at the close of the most recent fiscal year.
The largest portion of the City of Fridley's net assets ($32,833,894 or 56.6 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 Activities Business-Type Activities Totals
2004 2003 2004 2003 2004 2003
Current and other assets $24,953,043 $25,710,358 $12,396,211 $10,313,917 $37,349,254 $36,024,275
Capital assets 18,495,647 19,245,543 19,928,180 19,791,438 38,423,827 39,036,981
Total assets $43,448,690 $44,955,901 $32,324,391 $30,105,355 $75,773,081 $75,061,256
Long-term liabilities outstanding $8,487,368 $9,984,013 $3,809,933 $2,397,571 $12,297,301 $12,381,584
Other liabilities 3,254,995 3,319,109 2,171,562 1,040,110 5,426,557 4,359,219
Total liabilities $11,742,363 $13,303,122 $5,981,495 $3,437,681 $17,723,858 $16,740,803
Net assets:
Invested in capital assets,net of related debt $18,305,647 $18,930,543 $14,528,247 $17,003,867 $32,833,894 $35,934,410
Restricted 1,664,772 2,395,446 - - 1,664,772 2,395,446
Unrestricted 11,735,908 10,326,790 11,814,649 9,663,807 23,550,557 19,990,597
Total net assets $31,706,327 $31,652,779 $26,342,896 $26,667,674 $58,049,223 $58,320,453
26
Management's 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 ($23,550,557) 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 $53,548, while the
overall decrease totaled $271,230. Key elements of this increase are as follows:
City of Fridley's Changes in Net Assets
Governmental Activities Business-Type Activities Totals
2004 2003 2004 2003 2004 2003
Revenues:
Program revenues:
Charges for services $2,669,014 $2,625,479 $10,770,363 $10,720,873 $13,439,377 $13,346,352
Operating grants and contributions 1,009,861 1,481,723 208 37,976 1,010,069 1,519,699
Capital grants and contributions 882,292 1,012,151 - - 882,292 1,012,151
General revenues:
Property taxes 5,816,656 5,273,363 - - 5,816,656 5,273,363
Grants and contributions not
restricted to specific programs 3,436,473 3,751,560 - - 3,436,473 3,751,560
Unrestricted investment earnings 413,743 423,215 146,248 118,029 559,991 541,244
Gain on sale of property 680 10,468 - 6,530 680 16,998
Other - - - 6,502 - 6,502
Total revenues 14,228,719 14,577,959 10,916,819 10,889,910 25,145,538 25,467,869
Expenses:
General government 3,513,065 3,944,682 - - 3,513,065 3,944,682
Public safety 5,468,014 5,166,975 - - 5,468,014 5,166,975
Public works 3,612,318 3,749,412 - - 3,612,318 3,749,412
Community development 602,335 939,918 - - 602,335 939,918
Recreation and naturalist 993,570 1,105,240 - - 993,570 1,105,240
Interest on long-term debt 544,478 605,639 - - 544,478 605,639
Liquor - - 5,005,198 5,010,636 5,005,198 5,010,636
Water - - 2,086,513 2,030,654 2,086,513 2,030,654
Sewer - - 3,256,371 3,419,100 3,256,371 3,419,100
Storm water - - 334,906 359,189 334,906 359,189
Total expenses 14,733,780 15,511,866 10,682,988 10,819,579 25,416,768 26,331,445
Increase(decrease)in net assets before transfers (505,061) (933,907) 233,831 70,331 (271,230) (863,576)
Transfers 558,609 559,109 (558,609) (559,109) - -
Increase(decrease)in net assets 53,548 (374,798) (324,778) (488,778) (271,230) (863,576)
Net assets-January 1 31,652,779 32,027,577 26,667,674 27,156,452 58,320,453 59,184,029
Net assets-December 31 $31,706,327 $31,652,779 $26,342,896 $26,667,674 $58,049,223 $58,320,453
27
Management's Discussion and Analysis
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenditures:
Governmental Activities-Revenues
Unrestricted investment
earnings
3% Charges f r services
Grants and ontribununs t a 19/
restrrcted to specific programs s4' v i y '� F y i»
24/ • e\ , �/ grants and
e / �., a' 3� contnbunons
Sri lvti
� ry%2G7/fir/ . �rVe �
0%
6%
Gain
sale atn Capital pronto
property and
contributions
41%
Property taxes
Governmental Activities-Expenses
Interest on
Recreation long-term debt
Community and naturalist
Developement 7% 3 General government
4/ f a �' 24%
4F,0"''/9"
x<
�av<f<' ,? �;,'�a g
25%
Public
works
37%
Public safety
28
Management's Discussion and Analysis
Business-Type Activities
Business type activities decreased net assets by $324,778, compared to an overall decrease of
$271,230 in net assets of the City •of Fridley. Below are graphs showing the business-type
activities revenue and expense comparisons:
Business-Type Activites
.• Revenues
Unccstciacd investmeor
Operating grants aral camings Other 0%
c trih000ns IN/r 1%
��
j/ �/ ,, r a -s
%i ��i .' - / ii i.' :, 1 .
a ° Syr k \a�� F /
i te r ,
99°/
Charges for services
Business-Type Activities-Expenses
Sturm water
wt
3%
i� r �/� / u /s / 3x, uyuor
47
f
30
Sewer%
29
Management's 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 $19,435,635. Approximately 88 percent of this total
amount ($17,145,797) constitutes unreserved fund balance. The remainder of the fund
balance ($2,289,838) is reserved because it has already been committed 1) to provide for
inventory ($47,094), 2) to pay debt service ($509,547), 3) for loan receivable ($577,972) and
4) for police purposes (1,155,225).
The general fund's fund balance decreased by $264,041 in 2004. This was significantly less
than the decrease budgeted for.
The special assessment debt service fund's fund balance decreased by $118,939 due to
transfers to other funds.
The non-major special revenue fund's fund balances decreased by $475,039 in 2004. This
was mainly due to transfers to other funds.
The non-major capital projects fund's fund balance increased by $85,375, due to some
projects not getting completed by year-end.
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 $1,108,901, water
$5,010,765, sewer $4,059,145 and storm water $1,635,838. The liquor, water and storm
water funds had decreases in net assets of$67,353, $242,783 and $66,537, respectively. The
sewer fund had an increase in net assets of$51,895.
Budgetary Highlights
General Fund
The original budget for the fire department was increased by $30,374 during the year. This
was mainly due to an increase in the contribution made to the fire relief association. The
original budget for contingency was decreased by $69,564 during the year. This was mainly
due to its budget being allocated to budgets in other departments.
30
Management's Discussion and Analysis
Expenditures in total were less than the final budgetary estimates by $461,747. Significant
variances include the MIS department which expended $37,344 less than anticipated, the
public works and parks department which expended $65,115 less than anticipated, the
recreation department which expended $100,268 less than anticipated, the planning
department which expended $43,614 less than anticipated and non-departmental which
expended $38,305 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, 2004, amounts to $38,423,827 (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 Activities Business-Type Activities Totals
2004 2003 2004 2003 2004 2003
Land $2,824,016 $2,824,016 $306,477 $306,477 $3,130,493 $3,130,493
Buildings and structures 3,622,524 3,932,531 640,800 678,002 4,263,324 4,610,533
Improvements other than buildings 1,085,065 1,264,132 6,772,165 7,236,948 7,857,230 8,501,080
Machinery and equipment 1,788,395 2,093,495 694,845 728,185 2,483,240 2,821,680
Infrastructure 8,909,802 8,471,803 10,480,310 10,685,841 19,390,112 19,157,644
Construction in progress 265,845 659,566 1,033,583 155,985 1,299,428 815,551
Total $18,495,647 $19,245,543 $19,928,180 $19,791,438 $38,423,827 $39,036,981
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$15,190,000, an increase of$1,370,000 from 2003. $190,000 of this is
for general obligation improvement debt which is supported by special assessments, an
additional $9,595,000 is for general obligation tax increment debt which financed the City's
housing and redevelopment program, and $5,405,000 is general obligation utility revenue
bonds which financed utility improvements. In 2004, the City issued $1,790,000 in general
obligation water revenue bonds, $3,920,000 in general obligation tax increment refunding
bonds and$1,205,000 in general obligation refunding bonds.
In addition, there is long-term debt in the amount of$785,785 for compensated absences.
31
Management's 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:
Governmental Activities Business-Type Activities Totals
2004 2003 2004 2003 2004 2003
General Obligation Improvement Bonds $190,000 $315,000 $ - $ - $190,000 $315,000
General Obligation Tax Increment Bonds 9,595,000 10,705,000 - - 9,595,000 10,705,000
General Obligation Revenue Bonds - - 5,405,000 2,800,000 5,405,000 2,800,000
Compensated absences 785,785 837,584 - - 785,785 837,584
Total $10,570,785 $11,857,584 $5,405,000 $2,800,000 $15,975,785 $14,657,584
Additional information on the City of Fridley's long term debt can be found in Note 5.
The City of Fridley maintains an Aal rating from Moody's.
State statutes limit the amount of general obligation debt a Minnesota city may issue to 2% of
total Estimated Market Value. The current debt limitation for the City of Fridley is
$42,589,016. 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.
32
BASIC FINANCIAL STATEMENTS
33
-This page intentionally left blank-
■
34
Exhibit A-1
CITY OF FRIDLEY,MINNESOTA
STATEMENT OF NET ASSETS
December 31,2004
Component Unit
Primary Government Housing&Redevelopment
Governmental Business-Type Totals Authority
Assets: Activities Activities 2004 2003 2004 2003
Cash and investments $22,458,258 $8,793,224 $31,251,482 $31,290,685 $14,832,443 $15,014,720
Cash held in escrow - 1,178,641 1,178,641 - 142,929 135,106
Receivables:
Accounts 123,190 1,547,257 1,670,447 1,553,059 443,309 67,434
Taxes 142,164 205 142,369 199,020 167,967 205,700
Special assessments 898,429 58,714 957,143 1,070,689 - -
Mortgage - - - - 972,147 862,828
Interest 83,539 - 83,539 80,781 20,006 29,550
Loan from component unit 541,244 - 541,244 599,420 - -
Notes 36,728 - 36,728 45,910 - -
Due from component unit 61,273 - 61,273 64,733 - -
Due from other governments 561,124 3,467 564,591 321,120 - -
Due from primary government - - - - 12,478 191,559
Prepaid items - 210,146 210,146 196,781 - -
Inventories-at cost 47,094 604,557 651,651 602,077 - -
Land held for resale - - - - 1,055,000 955,000
Capital assets (net of accumulated depreciation):
Land 2,824,016 306,477 3,130,493 3,130,493 - -
Buildings and structures 3,622,524 640,800 4,263,324 4,610,533 - -
Improvements other than buildings 1,085,065 6,772,165 7,857,230 8,501,080 - -
Machinery and equipment 1,788,395 694,845 2,483,240 2,821,680 - -
Infrastructure 8,909,802 10,480,310 19,390,112 19,157,644 - -
Construction in progress 265,845 1,033,583 1,299,428 815,551 - -
Total assets 43,448,690 32,324,391 75,773,081 75,061,256 17,646,279 17,461,897
Liabilities:
Due to primary government - - - - 61,273 64,733
Accounts payable 319,771 344,702 664,473 640,093 267,285 643,235
Deposits payable 32,777 - 32,777 32,580 - -
Contracts payable 34,101 58,607 92,708 74,014 - -
Due to other governments 34,012 65,995 100,007 77,770 - -
Due to component unit 12,478 - 12,478 191,559 - -
Salaries payable 325,227 23,813 349,040 576,072 1,528 5,253
Accrued interest payable 179,169 88,445 267,614 297,035 - -
Compensated absences payable:
Due within one year 613,417 - 613,417 568,571 - -
Due in more than one year 172,368 - 172,368 269,013 - -
Unearned revenue 234,043 - 234,043 206,525 - -
Loan payable to primary government:
Due within one year - - - - 61,121 58,176
Due in more than one year - - - - 480,123 541,244
Bonds payable:
Due within one year 1,470,000 1,590,000 3,060,000 1,695,000 - -
Due in more than one year 8,315,000 3,809,933 12,124,933 12,112,571 - -
Total liabilities 11,742,363 5,981,495 17,723,858 16,740,803 871,330 1,312,641
Net assets:
Invested in capital assets,net of related debt 18,305,647 14,528,247 32,833,894 35,934,410 - -
Restricted for:
Debt service 498,037 - 498,037 747,076 - -
Public safety 1,155,225 - 1,155,225 1,611,017 - -
Tax increment purposes 11,510 - 11,510 37,353 2,819,574 2,447,948
Unrestricted 11,735,908 11,814,649 23,550,557 19,990,597 13,955,375 13,701,308
Total net assets $31,706,327 $26,342,896 $58,049,223 $58,320,453 $16,774,949 $16,149,256
The accompanying notes are an integral part of these financial statements.
35
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2004
Program Revenues
Operating
Charges For Grants and
Expenses Services Contributions
Functions/Programs
Primary government:
Governmental activities:
General government $3,513,065 $1,032,130 $77,626
Public safety 5,468,014 539,334 558,478
Public works 3,612,318 286,165 272,893
Community development 602,335 441,649 88,976
Recreation and naturalist 993,570 369,736 11,888
Interest on long-term debt 544,478 - -
Total governmental activities 14,733,780 2,669,014 1,009,861
Business-type activities:
Liquor 5,005,198 5,376,428 -
Water 2,086,513 1,763,623 -
Sewer 3,256,371 3,248,952 -
Storm water 334,906 381,360 208
Total business-type activities 10,682,988 10,770,363 208
Total primary government $25,416,768 $13,439,377 $1,010,069
Component units:
Housing and Redevelopment Authority $3,109,022 $9,600 $ -
Total component units $3,109,022 $9,600 $0
General revenues:
Property taxes
Tax increment collections
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Gain on sale of property
Other
Transfers
Total general revenues
and transfers
Change in net assets
Net assets-beginning
Net assets-ending
The accompanying notes are an integral part of these financial statements.
36
Exhibit A-2
Net (Expense) Revenue and Changes in Net Assets Component Unit
Capital Primary Government Housing & Redevelopment
Grants and Governmental Business-Type Totals Authority
Contributions Activities Activities 2004 2003 2004 2003
$ - ($2,403,309) $ - ($2,403,309) ($2,590,570) $ - $ -
- (4,370,202) - (4,370,202) (4,135,864) - -
882,292 (2,170,968) - (2,170,968) (2,122,462) - -
- (71,710) - (71,710) (136,552) - -
(611,946) - (611,946) (801,426) - -
- (544,478) - (544,478) (605,639) - -
882,292 (10,172,613) 0 (10,172,613) (10,392,513) 0 0
- - 371,230 371,230 353,952 - -
- - (322,890) (322,890) (224,296) - -
- - (7,419) (7,419) (235,840) - -
- - 46,662 46,662 45,454 - -
0 0 87,583 87,583 (60,730) 0 0
$882,292 (10,172,613) 87,583 (10,085,030) (10,453,243) $0 $0
$ - ($3,099,422) ($4,169,622)
$0 (3,099,422) (4,169,622)
5,816,656 - 5,816,656 5,273,363 262,429 239,382
- - - - 3,079,596 3,660,604
3,436,473 - 3,436,473 3,751,560 66,442 -
413,743 146,248 559,991 541,244 230,246 199,123
680 - 680 16,998 - -
- - - 6,502 86,402 500,344
558,609 (558,609) - - - -
10,226,161 (412,361) 9,813,800 9,589,667 3,725,115 4,599,453
53,548 (324,778) (271,230) (863,576) 625,693 429,831
31,652,779 26,667,674 58,320,453 59,184,029 16,149,256 15,719,425
$31,706,327 $26,342,896 $58,049,223 $58,320,453 $16,774,949 $16,149,256
The accompanying notes are an integral part of these financial statements.
37
CITY OF FRIDLEY,MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31,2004
Special
Grant Assessment
General Management Debt Service
Assets
Cash and investments $4,155,023 $220,184 $6,018,815
Receivables:
Accounts 58,628 15 -
Taxes 140,064 - -
Special assessments 12,707 - 849,473
Interest 83,539 - -
Loan receivable from component unit - - 541,244
Developer note 36,728 - -
Due from other funds 88,002 - -
Due from component unit 55,174 - -
Due from other governments 16,879 153,216 -
Inventories,at cost _ 47,094 - -
Total assets $4,693,838 $373,415 $7,409,532
Liabilities and Fund Balances
Liabilities:
Accounts payable $129,348 $117,404 $ -
Deposits payable 22,752 - -
Contracts payable 3,252 5,483 -
Salaries payable 246,675 1,875 -
Deferred revenue 96,141 234,043 847,604
Due to other funds - - -
Due to other governments 31,836 2,132 -
Due to component unit - 12,478 -
Total liabilities 530,004 373,415 847,604
Fund balances:
Reserved for:
Inventory 47,094 - -
Long-term receivables 36,728 - 541,244
Public safety - - -
Debt service - - 498,037
Unreserved:
Designated reported in:
General Fund 4,080,012 - -
Special Revenue Funds - - -
Capital Project Funds - - - 1
Undesignated reported in:
Special Revenue Funds - - -
Debt Service Funds - - 5,522,647
Capital Project Funds - - -
Total fund balances 4,163,834 0 6,561,928
Total liabilities and fund balances $4,693,838 $373,415 $7,409,532
I
i
The accompanying notes are an integral part of these financial statements.
38
Exhibit A-3
Tax Other Intra- Totals
Increment Capital Governmental Activity Governmental Funds
Debt Service Improvements Funds Eliminations 2004 2003
$11,510 $6,564,142 $1,830,301 $ - $18,799,975 $19,544,500
- - 64,547 - 123,190 110,077
- 2,100 - - 142,164 198,706
- 1,199 35,050 - 898,429 990,938
- - - - 83,539 80,781
- - - - 541,244 599,420
- - - - 36,728 45,910
- 312,869 - (400,871) - -
- - 5,996 - 61,170 64,733
- 330,000 61,029 - 561,124 321,120
- - - - 47,094 43,501
$11,510 $7,210,310 $1,996,923 ($400,871) $21,294,657 $21,999,686
$ - $ - $32,705 $ - $279,457 $180,266
- - 10,025 - 32,777 32,580
- - 25,366 - 34,101 59,775
- - 2,377 - 250,927 442,713
, - 2,431 35,051 - 1,215,270 1,271,740
- - 400,871 (400,871) - -
- - 44 - 34,012 12,518
- - - - 12,478 191,559
0 2,431 506,439 (400,871) 1,859,022 2,191,151
- - - - 47,094 43,502
- - - - 577,972 645,330
- - 1,155,225 - 1,155,225 1,611,017
11,510 - - - 509,547 609,992
- - - - 4,080,012 4,338,463
- - 554,343 - 554,343 560,995
- 7,207,879 - - 7,207,879 6,782,292
- - (12,595) - (12,595) -
- - - - 5,522,647 5,508,808
- - (206,489) - (206,489) (291,864)
11,510 7,207,879 1,490,484 0 19,435,635 19,808,535
$11,510 $7,210,310 $1,996,923 ($400,871) $21,294,657 $21,999,686
Fund balance reported above $19,435,635 $19,808,535
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. 18,105,839 18,829,678
Other long-term assets are not available to pay for current-period expenditures and,
therefore,are deferred in the funds. 981,227 1,065,215
Long-term liabilities,including bonds payable,are not due and payable in the
current period and therefore are not reported in the funds. (9,964,169) (11,259,696)
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 3,147,795 3,209,047
Net assets of governmental activities $31,706,327 $31,652,779
The accompanying notes are an integral part of these financial statements.
39
1
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2004
Special
Grant Assessment
General Management Debt Service
Revenues:
Taxes $5,723,486 $ - $ -
Special assessments 8,906 - 273,813
Licenses and permits 602,237 - -
Intergovernmental revenue 2,129,411 300,541 -
Charges for services 1,289,146 - -
Fines and forfeits 173,694 - -
Investment income 88,773 - 94,470
Interest on loan - - 29,253
Miscellaneous 383,233 427 - _
Total revenues 10,398,886 300,968 397,536
Expenditures:
Current:
General government 2,278,756 312,965 15,877
Public safety 5,156,529 - -
Public works 2,608,316 - -
Community development 593,393 - -
Recreation and naturalist 960,723 - -
Debt service - - 140,190
Capital outlay 223,115 - -
Total expenditures 11,820,832 312,965 156,067
Excess (deficiency)of revenues
over(under)expenditures (1,421,946) (11,997) 241,469
Other financing sources(uses):
Refunding bonds issued - - -
Discount on bonds issued - - -
Transfers in 1,161,293 11,997 -
Transfers out (3,388) - (360,408)
Total other financing sources (uses) 1,157,905 11,997 (360,408)
Net change in fund balance (264,041) 0 (118,939)
Fund balance-January 1 4,427,875 - 6,680,867 i
Fund balance- December 31 $4,163,834 $0 $6,561,928
1
The accompanying notes are an integral part of these financial statements.
■
40
Exhibit A-4
Tax Other Infra- Totals
Increment Capital Governmental Activity Governmental Funds
Debt Service Improvements Funds Eliminations 2004 2003
$ - $86,145 $ - $ - $5,809,631 $5,305,289
1,275 16,395 - 300,389 470,648
183,345 - 785,582 722,541
- 688,881 88,649 - 3,207,482 4,075,023
- - 244,107 - 1,533,253 1,500,429
- - 3,184 - 176,878 216,368
- 109,774 32,290 - 325,307 330,133
- - 29,253 32,056
1,673,972 25,697 1,740 - 2,085,069 2,023,544
1,673,972 911,772 569,710 0 14,252,844 14,676,031
- 2,225 545,794 - 3,155,617 3,569,952
- - - 5,156,529 4,925,525
- - - - 2,608,316 2,712,421
- - - - 593,393 934,151
- - - - 960,723 1,068,875
5,608,823 - - - 5,749,013 1,810,100
14,250 632,405 - 869,770 1,705,270
5,608,823 16,475 1,178,199 0 19,093,361 16,726,294
(3,934,851) 895,297 (608,489) 0 (4,840,517) (2,050,263)
3,920,000 - - - 3,920,000 -
(10,992) - - - (10,992) -
- - 697,218 (1,311,899) 558,609 579,109
- (469,710) (478,393) 1,311,899 - -
3,909,008 (469,710) 218,825 0 4,467,617 579,109
(25,843) 425,587 (389,664) 0 (372,900) (1,471,154)
37,353 6,782,292 1,880,148 - 19,808,535 21,279,689
$11,510 $7,207,879 $1,490,484 $0 $19,435,635 $19,808,535
The accompanying notes are an integral part of these financial statements.
41
-This page intentionally left blank-
42
Exhibit A-5
CITY OF FRIDLEY, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES,AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2004
2004 2003
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) ($372,900) ($1,471,154)
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. (723,839) 125,631
Revenues in the statement of activities that do not provide current
financial resources are not reported as revenues in the funds. (83,988) (159,096)
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. 1,235,000 1,180,000
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. (61,252) (74,640)
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. 60,527 24,461
Change in net assets of governmental activities (Exhibit A-2) $53,548 ($374,798)
The accompanying notes are an integral part of these financial statements.
43
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2004
Business-Type Activities-Enterprise Funds
Liquor Water
Assets:
Current assets:
Cash and cash equivalents $898,328 $3,583,805
Cash with escrow agent - 982,652
Accounts receivable 1,475 602,486
Taxes receivable:
Unremitted - -
Delinquent - -
Special assessments receivable - 3,379
Due from component units - -
Due from other governments - -
Inventories, at cost 590,918 13,639
Prepaid items - -
Total current assets 1,490,721 5,185,961
Noncurrent assets:
Capital assets:
Land 151,946 154,531
Buildings and structures 130,211 1,714,010
Improvements other than buildings 650,245 6,557,402
Machinery and equipment 194,341 1,406,655
Infrastructure - 7,319,697
Construction in progress - 1,033,583
Total capital assets 1,126,743 18,185,878
Less: Allowance for depreciation (467,420) (8,183,085)
Net capital assets 659,323 10,002,793
Total noncurrent assets 659,323 10,002,793
Total assets 2,150,044 15,188,754
Liabilities:
Current liabilities:
Accounts payable 321,665 19,792
Contracts payable - 55,483
Salaries payable 8,931 7,816
Payroll deductions payable - -
Compensated absences payable - -
Due to other governments 51,224 12,098
Accrued interest payable - 80,007
Bonds payable-current - 1,265,000
Total current liabilities 381,820 1,440,196
Noncurrent liabilities:
Compensated absences-noncurrent - -
Bonds payable- noncurrent - 3,609,352
Total noncurrent liabilities 0 3,609,352
Total liabilities 381,820 5,049,548
Net assets:
Invested in capital assets, net of related debt 659,323 5,128,441
Unrestricted 1,108,901 5,010,765
Total net assets $1,768,224 $10,139,206
The accompanying notes are an integral part of these financial statements.
44
Exhibit A-6
Governmental
Business-Type Activities-Enterprise Funds Activities-
Storm Totals Internal Service
Sewer Water 2004 2003 Funds
$3,021,215 $1,289,876 $8,793,224 $8,035,513 $3,658,283
- 195,989 1,178,641 - -
840,661 102,635 1,547,257 1,442,982 -
- 91 91 219 -
- 114 114 95 -
- 55,335 58,714 79,751 -
- - - - 103
3,467 - 3,467 - -
- - 604,557 558,576 -
210,146 - 210,146 196,781 -
4,075,489 1,644,040 12,396,211 10,313,917 3,658,386
- - 306,477 306,477 -
8,770 - 1,852,991 1,949,453 -
1,897,756 1,809,188 10,914,591 10,971,240 -
752,578 29,125 2,382,699 2,277,061 1,331,455
6,492,087 6,170,019 19,981,803 19,766,464 -
- - 1,033,583 155,985 -
9,151,191 8,008,332 36,472,144 35,426,680 1,331,455
(4,390,502) (3,502,957) (16,543,964) (15,635,242) (941,647)
4,760,689 4,505,375 19,928,180 19,791,438 389,808
4,760,689 4,505,375 19,928,180 19,791,438 389,808
8,836,178 6,149,415 32,324,391 30,105,355 4,048,194
3,227 18 344,702 459,003 40,314
3,124 - 58,607 14,239 -
7,066 - 23,813 54,277 -
- - - - 74,300
- - - - 613,417
2,673 - 65,995 65,252 -
254 8,184 88,445 57,339 -
10,000 315,000 1,590,000 390,000 -
26,344 323,202 2,171,562 1,040,110 728,031
- - - - 172,368
- 200,581 3,809,933 2,397,571 -
0 200,581 3,809,933 2,397,571 172,368
26,344 523,783 5,981,495 3,437,681 900,399
4,750,689 3,989,794 14,528,247 17,003,867 389,808
4,059,145 1,635,838 11,814,649 9,663,807 2,757,987
$8,809,834 $5,625,632 $26,342,896 $26,667,674 $3,147,795
The accompanying notes are an integral part of these financial statements.
45
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For The Year Ended December 31, 2004
Business-Type Activities- Enterprise Funds
Liquor Water
Sales $5,376,428 $ -
Cost of sales (4,188,290) -
Gross profit 1,188,138 0
Operating revenues:
Customer billings - 1,754,696
Charges for services - 7,578
Other revenues - 1,349
Total operating revenues 0 1,763,623
Total gross profit and operating revenues 1,188,138 1,763,623
Operating expenses:
Personal services 438,141 585,151
Supplies and other charges:
Disposal charges - -
Other 312,757 662,851
Depreciation 66,010 557,557
Total operating expenses 816,908 1,805,559
Operating income (loss) 371,230 (41,936)
Nonoperating revenues (expenses):
Intergovernmental revenue - -
Investment income 11,417 67,075
Interest expense - (176,518)
Bond issuance costs - (38,088)
Special assessments - -
Gain (loss)on disposal of capital assets - (66,348)
Total nonoperating revenues (expenses) 11,417 (213,879)
Income(loss) before transfers 382,647 (255,815)
Transfers:
Transfers in - 16,392
Transfers out (450,000) (3,360)
Total transfers (450,000) 13,032
Change in net assets (67,353) (242,783)
Net assets-January 1 1,835,577 10,381,989
Net assets- December 31 $1,768,224 $10,139,206
The accompanying notes are an integral part of these financial statements.
46
Exhibit A-7
Governmental
Business-Type Activities- Enterprise Funds Activities-
Storm Infra Activity Totals Internal Service
Sewer Water Elimination 2004 2003 Funds
$ - $ - $ - $5,376,428 $5,364,588 $ -
(4,188,290) (4,214,499) -
0 0 0 1,188,138 1,150,089 0
3,248,952 368,014 - 5,371,662 5,330,602 -
- - - 7,578 7,577 152,067
8,518 - 9,867 18,106 -
3,248,952 376,532 0 5,389,107 5,356,285 152,067
3,248,952 376,532 0 6,577,245 6,506,374 152,067
526,161 98,700 - 1,648,153 1,608,125 7,518
2,307,279 - - 2,307,279 2,441,725 -
115,829 30,050 - 1,121,487 1,301,922 105,379
297,073 183,083 - 1,103,723 1,109,104 160,285
3,246,342 311,833 0 6,180,642 6,460,876 273,182
2,610 64,699 0 396,603 45,498 (121,115)
- 208 - 208 37,976 -
46,426 21,330 - 146,248 118,029 59,183
(772) (19,211) - (196,501) (144,204) -
- (3,862) - (41,950) - -
4,828 - 4,828 6,502 -
(9,257) - - (75,605) 6,530 680
36,397 3,293 0 (162,772) 24,833 59,863
39,007 67,992 0 233,831 70,331 (61,252)
24,588 - (40,980) - - -
(11,700) (134,529) 40,980 (558,609) (559,109) -
12,888 (134,529) 0 (558,609) (559,109) 0
51,895 (66,537) 0 (324,778) (488,778) (61,252)
8,757,939 5,692,169 - 26,667,674 27,156,452 3,209,047
$8,809,834 $5,625,632 $0 $26,342,896 $26,667,674 $3,147,795
The accompanying notes are an integral part of these financial statements.
47
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2004
Business-Type Activities- Enterprise Funds
Liquor Water
Cash flows from operating activities:
Receipts from customers and users $5,375,921 $1,672,730
Receipts from interfund services provided - -
Payment to suppliers (4,619,217) (652,384)
Payment to employees (447,533) (597,498)
Miscellaneous revenue - -
Net cash flows from operating activities 309,171 422,848
Cash flows from noncapital financing activities:
Intergovernmental revenue - -
Transfers out (450,000) (3,360)
Transfers in - 16,392
Special assessment collections - -
Other noncapital items - -
Net cash flows from
noncapital financing activities (450,000) 13,032
Cash flows from capital and related
financing activities:
Acquisition of capital assets - (1,081,428)
Proceeds from issuance of revenue bonds - 2,799,652
Payment to refunding escrow - (991,963)
Bond issuance costs - (38,088)
Principal paid on revenue bonds - (270,000)
Interest and paying agent fees on revenue bonds - (134,457)
Proceeds from sale of capital assets - -
Net cash flows from capital
and related financing activities 0 283,716
Cash flows from investing activities:
Investment income 11,417 67,075
Net increase (decrease) in cash and cash equivalents (129,412) 786,671
Cash and cash equivalents-January 1 1,027,740 2,797,134
Cash and cash equivalents- December 31 $898,328 $3,583,805
Reconciliation of operating income (loss)to net cash
provided (used) by operating activities:
Operating income (loss) $371,230 ($41,936)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation 66,010 557,557
Changes in assets and liabilities:
Decrease (increase) in receivables (507) (90,893)
Decrease (increase) in prepaid items - -
Decrease (increase) in inventories (44,029) (1,952)
increase (decrease)in payables (83,533) 72
Total adjustments (62,059) 464,784
Net cash provided by operating activities $309,171 $422,848
The accompanying notes are an integral part of these financial statements.
48 �
Exhibit A-8
Governmental
Business-Type Activities- Enterprise Funds Activities-
Storm Totals Internal
Sewer Water 2004 2003 Service Fund
$3,245,198 $365,797 $10,659,646 $10,604,969 $ -
- - - 152,067
(2,435,290) (38,701) (7,745,592) (7,708,986) (101,078)
(534,886) (98,700) (1,678,617) (1,602,081) (64,099)
- 19,079 -
275,022 228,396 1,235,437 1,312,981 (13,110)
208 208 37,976 -
(11,700) (134,529) (599,589) (598,909) -
24,588 - 40,980 39,800 -
- 24,120 24,120 36,809 -
- - - 106 -
12,888 (110,201) (534,281) (484,218) 0
(200,674) (44,451) (1,326,553) (476,611) (128,181)
201,998 3,001,650 - -
- (197,405) (1,189,368) - -
- (3,862) (41,950) - -
(10,000) (110,000) (390,000) (371,621) -
(1,022) (18,476) (153,955) (151,488) -
10,483 - 10,483 11,333 29,822
(201,213) (172,196) (89,693) (988,387) (98,359)
46,426 21,330 146,248 118,029 59,183
133,123 (32,671) 757,711 (41,595) (52,286)
2,888,092 1,322,547 8,035,513 8,077,108 3,710,672
$3,021,215 $1,289,876 $8,793,224 $8,035,513 $3,658,386
$2,610 $64,699 $396,603 $45,498 ($121,115)
297,073 183,083 1,103,723 1,109,104 160,285
(3,754) (10,735) (105,889) (90,888) -
(13,365) - (13,365) 31,681 -
- (45,981) 37,891 -
(7,542) (8,651) (99,654) 179,695 (52,280)
272,412 163,697 838,834 1,267,483 108,005
$275,022 $228,396 $1,235,437 $1,312,981 ($13,110)
The accompanying notes are an integral part of these financial statements.
49
Exhibit A-9
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF FIDUCIARY NET ASSETS
December 31,2004
2004 2003
Assets:
Cash and investments $20,580 $20,157
Receivables:
Accounts 1,590 1,272
Taxes:
Unremitted 57 163
Delinquent 80 111
Total assets 22,307 21,703
Liabilities:
Due to other governments 22,307 21,703
Net assets:
Unreserved:
Undesignated - -
Total net assets $0 $0
The accompanying notes are an integral part of these financial statements.
50
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
1. Summary of Significant Accounting Policies
The City of Fridley 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 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 (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.
51
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
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.
The grant 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.
The special 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.
52
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
The tax 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.
The capital improvements capital projects 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:
The liquor fund accounts for operations of the municipal liquor stores.
The water fund accounts for the water service charges which are used to finance the
water system operating expenses.
The sewer fund accounts for the sewer service charges which are used to finance the
sanitary sewer system operating expenses.
The storm water fund accounts for storm sewer charges which are used to finance the
storm sewer operating expenses.
Additionally, the government reports the following fund type:
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.
Agency Funds are used to account for monies collected for other agencies.
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.
Amounts reported as program revenues include 1)charges to customers or applicants for
goods, services, or privileges provided, 2)operating grants and contributions, and 3)capital
grants and contributions, including special assessments. Internally dedicated resources are
reported as general revenues rather than as program revenues. Likewise, general revenues
include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing
53
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
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.
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.
54
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
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.
Cash and investments held by escrow agent include balances held in segregated accounts
that are established for specific purposes.
55
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
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,
2004 are planned to be eliminated in 2005. Any residual balances outstanding between the
governmental activities and business-type activities are reported in the government-wide
financial statements as"internal balances."
Property taxes and special assessments (See Notes 1H, J) have been reported net of
estimated uncollectible accounts. 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.
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.
56
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
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)and 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).
57
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
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
(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, 2004, no interest was capitalized in connection with construction in
progress.
Property, plant and equipment of the primary government, as well as 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
58
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
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.
59
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
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 ($9,964,169)
difference are as follows:
Bonds payable ($9,785,000)
Accrued interest payable (179,169)
Net adjustment to decrease net changes in
fund balances-total governmental funds to
arrive at changes in net assets of
governmental activities ($9,964,169)
60
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
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 ($723,839)difference
are as follows:
Loss on disposal of capital assets ($22,614)
Capital outlay 869,770
Depreciation expense (1,570,995)
Net adjustment to decrease net changes in fund
balances-total governmental funds to arrive at
changes in net assets of governmental activities ($723,839)
Another element of that reconciliation states that"revenues on the statement of activities
that do not provide current financial resources are not reported as revenues in the funds."
The details of this ($83,988)difference are as follows:
General property taxes deferred revenue:
At December 31, 2003 ($80,118)
At December 31, 2004 87,143
Special assessments deferred revenue:
At December 31, 2003 (985,097)
At December 31, 2004 894,084
Net adjustments to decrease net changes in fund balances-
total governmental funds to arrive at changes in net
assets of governmental activities ($83,988)
61
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
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$1,235,000 difference are as follows:
Debt issued:
Tax increment bonds ($3,920,000)
Principal repayments:
Improvement bonds 125,000
Tax increment bonds 5,030,000
Net adjustment to increase net changes in fund
balances-total governmental funds to arrive at
changes in net assets of governmental activities $1,235,000
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
62
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
f) Time deposits that are fully insured by any federal agency.
Balances at December 31, 2004 are as follows:
Bank Carrying
Balances Amount
City $1,341,065 $1,106,614
HRA 481,588 472,189
The entire bank balances are covered by Federal Depository Insurance or collateral held by
the City/HRA's agent in the City/HRA's name.
B. Investments
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its
instrumentalities or organizations created by an act of congress, excluding mortgage-
backed securities defined as high risk.
b) Shares of investment companies registered under the Federal Investment Company Act
of 1940 and whose only investments are in securities described in (a)above, general
obligation tax-exempt securities, or repurchase or reverse repurchase agreements.
c) Obligations of the State of Minnesota or any of its municipalities as follows:
1) any security which is a general obligation of any state or local government with taxing
powers which is rated "A"or better by a national bond rating service;
2) any security which is a revenue obligation of any state or local government with
taxing powers which is rated "AA"or better by a national bond rating service; and
3) a general obligation of the Minnesota housing finance agency which is a moral
obligation of the State of Minnesota and is rated "A" or better by a national bond
rating agency.
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.
63
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
The City invests in collateralized mortgage obligations (a form of mortgage backed security).
These securities allow cash flows to be split so that different classes of securities with
different maturities and coupons may be created. The City, by policy, is only allowed to
invest in these types of securities if they are classified as a Planned Amortization Class 1
(PAC 1)with a stated maturity of 3 years or less.
The City's investments are categorized below to give an indication of the level of risk
assumed at year end. The level of risk is defined by the following criteria set out by the
Governmental Accounting Standards Board within Statement No. 3. Category 1 includes
investments that are insured or registered for which the securities are held by the City or its
agent in the City's name. Category 2 includes uninsured and unregistered investments for
which the securities are held by the counterparty's trust department or agent in the City's
name. Category 3 includes uninsured and unregistered investments for which the securities
are held by the counterparty, or by its trust department or agent but not in the City's name.
The fair value and credit risk of the investments held by the City at year end are as follows:
Credit Risk Category Fair Value
Securities Type 1 2 3 Amount
U.S. government agencies
or instrumentalities $21,726,564 $ - $ - $21,726,564
Investments not subject to categorization:
Mutual funds 9,617,255
Total investments $31,343,819
The fair value and credit risk of the investments held by the HRA at year end are as follows:
Credit Risk Category Fair Value
Securities Type 1 2 3 Amount
U.S. government securities $212,208 $ - $ - $212,208
U.S. government agencies
or instrumentalities 5,948,190 - - 5,948,190
$6,160,398 $0 $0 6,160,398
Investments not subject to categorization:
Money market fund 281,934
Mutual fund 8,060,857
Total investments $14,503,189
64
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
3. Receivables
Significant receivables balances not expected to be collected within one year of December 31, 2004
are as follows:
Primary Government
Major Funds
Special
Assessment Capital Nonmajor
General Debt Service Improvements Funds Total
Special assessments receivable $6,986 $598,986 $775 $344 $607,091
Loans receivable 27,546 480,123 - - 507,669
Delinquent property taxes 59,800 - 900 - 60,700
$94,332 $1,079,109 $1,675 $344 $1,175,460
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:
Unavailable Unearned Total
Delinquent property taxes receivable(General Fund) $85,853 $ - $85,853
Delinquent property taxes receivable(Capital Improvements Fund) 1,286 - 1,286
Special assessments not yet due(General Fund) 10,288 - 10,288
Special assessments not yet due(Special Assessment Debt Service Fund) 847,604 - 847,604
Special assessments not yet due(Capital Improvements Fund) 1,145 - 1,145
Special assessments not yet due(Nonmajor Funds) 35,051 - 35,051
Unearned grant funds(Grant Management Fund) - 234,043 234,043
Total deferred/unearned revenue for governmental funds $981,227 $234,043 $1,215,270
65
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
4. Capital Assets
Capital asset activity for the year ended December 31, 2004 was as follows:
Beginning Ending
Primary Government Balance Increases Decreases Balance
Governmental activities:
Capital assets,not being depreciated:
Land $2,824,016 $ - $ - $2,824,016
Construction in progress 659,566 646,655 (1,040,376) 265,845
Total capital assets, not being depreciated 3,483,582 646,655 (1,040,376) 3,089,861
Capital assets, being depreciated:
Buildings and structures 7,773,311 - - 7,773,311
Machinery and equipment 7,193,405 386,485 (308,480) 7,271,410
Improvements 3,765,965 35,347 (18,727) 3,782,585
Infrastructure 23,728,971 1,005,029 (62,725) 24,671,275
Total capital assets, being depreciated 42,461,652 1,426,861 (389,932) 43,498,581
Less accumulated depreciation for:
Buildings and structures 3,840,780 310,007 - 4,150,787
Machinery and equipment 5,099,910 639,829 (256,724) 5,483,015
Improvements 2,501,833 214,414 (18,727) 2,697,520
Infrastructure 15,257,168 567,030 (62,725) 15,761,473
Total accumulated depreciation 26,699,691 1,731,280 (338,176) 28,092,795
Total capital assets being depreciated-net 15,761,961 (304,419) (51,756) 15,405,786
Governmental activities capital assets-net $19,245,543 $342,236 ($1,092,132) $18,495,647
66
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Beginning Ending
Primary Government Balance Increases Decreases Balance
Business-type activities:
Capital assets,not being depreciated:
Land $306,477 $ - $ - $306,477
Construction in progress 155,985 1,326,553 (448,955) 1,033,583
Total capital assets, not being depreciated 462,462 1,326,553 (448,955) 1,340,060
Capital assets, being depreciated:
Buildings and structures 1,949,453 - (96,463) 1,852,990
Improvements other than buildings 10,971,240 81,224 (137,874) 10,914,590
Machinery and equipment 2,277,061 152,392 (46,754) 2,382,699
Infrastructure 19,766,464 215,339 - 19,981,803
Total capital assets,being depreciated 34,964,218 448,955 (281,091) 35,132,082
Less accumulated depreciation for:
Buildings and structures 1,271,451 31,166 (90,427) 1,212,190
Improvements other than buildings 3,734,292 485,694 (77,561) 4,142,425
Machinery and equipment 1,548,876 165,991 (27,013) 1,687,854
Infrastructure 9,080,623 420,870 - 9,501,493
Total accumulated depreciation 15,635,242 1,103,721 (195,001) 16,543,962
Total capital assets being depreciated-net 19,328,976 (654,766) (86,090) 18,588,120
Business-type activities capital assets-net $19,791,438 $671,787 ($535,045) $19,928,180
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government $333,102
Public safety 204,366
Public works, including depreciation of general infrastructure assets 999,047
Community development 2,947
Recreation and naturalist 31,533
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets 160,285
Total depreciation expense-governmental activities $1,731,280
Business-type activities:
Liquor $66,009
Water 557,556
Sewer 297,073
Storm water 183,083
Total depreciation expense-business-type activities $1,103,721
67
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
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, 2004, the governmental long-term bonded debt and loans of the financial
reporting entity consisted of the following:
Governmental Activities:
$1,020,000 General Obligation Improvement Bonds of 1991 due in varying annual installments
of$35,000-$90,000 through February 1,2005;interest at 5.60%-6.60%. $40,000
$150,000 General Obligation Improvement Bonds of 1994 due in varying annual installments
of$5,000-$60,000 through February 1,2005;interest at 4.75%-6.10%. 60,000
$320,000 General Obligation Improvement Bonds of 1996 due in varying annual installments
of$30,000-$35,000 through February 1,2007;interest at 4.05%-4.95%. 90,000
$9,575,000 General Obligation Tax Increment Bonds of 1997 due in varying annual
installments of$75,000-$1,175,000 through August 1,2009;interest at 4.60%-5.12%. 5,675,000
$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%
February 1,2012;interest at 5.10%-5.65%. 3,920,000
Subtotal governmental activities 9,785,000
Business-Type Activities:
$620,000 Genera)Obligation Water Revenue Bonds of 1992,Series B,due in varying annual
installments of$35,000-$55,000 through February 1,2007;interest at 3.00%-5.70%. $165,000
$335,000 General Obligation Water,Sewer and Storm Water Revenue Bonds of 1994 due in varying
annual installments of$5,000-$25,000 through February 1,2005;interest at 4.75%-6.10%. 45,000
$2,615,000 General Obligation Water and Storm Water Revenue Bonds of 1996 due in varying
annual installments of$65,000-$165,000 through February 1,2012;interest at 4.05%-5.30%. 1,385,000
$1,180,000 General Obligation Water Revenue Bonds of 1998,due in varying annual
installments of$90,000-$130,000 through February 1,2011. 815,000
$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%. 1,790,000
$1,205,000 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%. 1,205,000
Unamortized discount (5,067)
Subtotal business-type activities 5,399,933
Total primary government $15,184,933
Component Units:
$1,500,000 loan payable to primary government. Due in annual installments of
$87,429,through February 1,2012;interest at 5%. $541,244
68
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Annual debt service requirements to maturity for general obligation bonds and loans are as follows:
Primary Government Component Unit
Governmental Activities Business-Type Activities HRA
Year Ending G.O.Improvement Tax Increment Revenue Bonds Loan Payable
December 31, Principal Interest Principal Interest Principal Interest Principal Interest
2005 $190,000 $5,340 $1,280,000 $417,026 $1,590,000 $172,246 $61,121 $26,308
2006 - - 1,565,000 357,228 395,000 126,024 64,215 23,213
2007 - - 1,635,000 290,681 405,000 113,348 67,467 19,963
2008 - - 1,700,000 217,484 300,000 101,943 70,882 16,547
2009 - - 1,695,000 139,314 315,000 91,726 74,470 12,959
2010 - - 545,000 59,906 320,000 80,756 78,240 9,188
2011 - - 570,000 38,003 330,000 68,955 82,201 5,227
2012 - - 605,000 13,159 345,000 57,229 42,648 1,066
2013 - - - - 175,000 48,779 - -
2014 - - - - 185,000 42,836 - -
2015 - - - - 190,000 36,413 - -
2016 - - - - 200,000 29,388 - -
2017 - - - - 205,000 21,844 - -
2018 - - - - 220,000 13,600 - -
2019 - - - - 230,000 4,600 - -
Total $190,000 $5,340 $9,595,000 $1,532,800 $5,405,000 $1,009,684 $541,244 $114,471
Crossover Refunding
On March 23, 2004, the City issued $1,205,000 General Obligation Refunding Bonds, Series 2004C
with an average interest rate of 2.49 percent to advance refund $1,235,000 of outstanding 1996
Series bonds with an average interest rate of 5.4 percent. The net proceeds of$1,217,034 (after
payment of$23,262 of issuance costs)were used to purchase U.S. government securities. Those
securities were deposited in an irrevocable trust with an escrow agent to provide for the interest on
the refunding bonds before the crossover date and the called principal on the refunded bonds on
February 1, 2005.
The City advance refunded the 1996 Series bonds to reduce its total debt service payments over the
next 8 years by$28,324 and to obtain an economic gain (difference between the present values of
the debt service payments on the old and new debt)of$71,112.
The Refunding Bonds of 2004C were issued to refund the General Obligation Bonds of 1996. The
City is responsible for the debt service of the refunded bonds through the crossover date (February 1,
2005)and the debt service of the refunding bonds after the crossover date. The debt service of the
refunding bonds before the crossover date is payable from the escrow account. Assets held with the
escrow agent total$1,178,641 at December 31, 2004.
The financial statements present both bond issues and the escrow account assets pursuant to SFAS
No. 76. The effect on the financial statements is to report greater debt than, in substance,the City
will be responsible for paying.
69
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
The Refunding Bonds of 2004C are crossover refunding bonds whereby the City and the escrow
agent are responsible for debt service payments as follows:
Refunded Refunding Debt Service Commitment
Payment Bonds Bonds Escrow
Date Total Total Account City
Aug-04 $37,043 $10,762 $10,762 $37,043
Feb-05 1,512,043 15,134 1,190,134 337,043
Aug-05 - 15,134 - 15,134
Feb-06 - 250,134 - 250,134
Aug-06 - 12,784 - 12,784
Feb-07 - 247,784 - 247,784
Aug-07 - 10,434 - 10,434
Feb-08 - 145,434 - 145,434
Aug-08 - 8,746 - 8,746
Feb-09 - 153,746 - 153,746
Aug-09 - 6,844 - 6,844
Feb-10 - 151,844 - 151,844
Aug-10 - 4,850 - 4,850
Feb-11 - 154,850 - 154,850
Aug-11 - 2,600 - 2,600
Feb-12 - 162,600 - 162,600
$1,549,086 $1,353,680 $1,200,896 $1,701,870
Current Refunding
On March 23, 2004, the City issued the $3,920,000 General Obligation Tax Increment Refunding
Bonds, Series 2004B with an average interest rate of 3.76%to refund the 2005 through 2012
maturities aggregating $3,850,000 in principal amount of the City's$4,185,000 General Obligation
Tax Increment Bonds, Series 1998B with an average interest rate of 5.4%. The net proceeds of
$3,909,009 (after payment of$30,518 of issuance costs) plus an additional $3,700 of escrow interest
earnings and $20,800 from the prior issue debt service fund were used to retire all outstanding
principal of the refunded bonds on May 1, 2004 (the call date).
The City refunded the 1998 Bonds to reduce its total debt service payments over the next eight years
by$270,827 and to obtain an economic gain (difference between the present value of the debt
service payments on the old and new debt)of$246,378.
70
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Long-term liability activity for the year ended December 31, 2004, was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
G.O.improvement bonds $315,000 $ - ($125,000) $190,000 $190,000
Tax increment bonds 10,705,000 3,920,000 (5,030,000) 9,595,000 1,280,000
Total bonds payable 11,020,000 3,920,000 (5,155,000) 9,785,000 1,470,000
Compensated absences 837,584 796,543 (848,342) 785,785 613,417
Total government activity
long-term debt $11,857,584 $4,716,543 ($6,003,342) $10,570,785 $2,083,417
Business-type activities:
Bonds payable:
G.O. revenue bonds $2,800,000 $2,995,000 ($390,000) $5,405,000 $ -
Component units:
Loan payable $599,420 $ - ($58,176) $541,244 $61,121
Compensated absences are generally liquidated by the General Fund. The loan payable is liquidated
by the HRA Revolving Loan Fund. All long-term bonded indebtedness outstanding at December 31,
2004 is backed by the full faith and credit of the City, including improvement and revenue bond
issues. Delinquent assessments receivable at December 31, 2004 totaled $3,650.
6. Pension Plans
A. Public Employees Retirement Association (PERA)
Plan Description
All full-time and certain part-time employees of the City are covered by defined benefit plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the 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.
71
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
The benefit provisions stated in the previous paragraphs of this section are current provisions
and apply to active plan participants. Vested, terminated employees who are entitled to
benefits but are not receiving them yet are bound by the provisions in effect at the time they
last terminated their public service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for PERF and PEPFF. That report may be obtained by writing to
PERA, 60 Empire Drive#200, St. Paul, Minnesota, 55103-2088 or by calling (651)296-7460 or 1-
800-652-9026.
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 are required to contribute 9.10%
and 5.10%, respectively, of their annual covered salary. PEPFF members are required to
contribute 6.20% of their annual covered salary. The City is required to contribute the
following percentages of annual covered payroll: 11.78%for Basic Plan PERF members,
5.53%for Coordinated Plan PERF members, and 9.30%for PEPFF members. The City's F
contributions for the last three years which were equal to the contractually required
contributions for each year as set by State Statute are as follows:
PERF PEPFF
2002 $256,281 $236,696
2003 258,241 255,993
2004 259,163 268,253
B. 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
72
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
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 six 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.
Total contributions made by the City during fiscal year 2004 were:
Percentage of
Amount Covered Payroll Required
Employees Employer Employees Employer Rates
PEDCP $2,002 $2,002 5.00% 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. 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 remitted $176,552 and $136,778 in State Aid to the Association for 2004 and 2003,
respectively.
During 2004 and as of December 31, 2004, the Association held no securities issued by the
City or other related parties.
73
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2004
8. Interfund Receivables, Payables and Transfers
Interfund receivables and payables of the primary government at December 31, 2004 are as
follows:
Interfund Interfund
Receivables Payables
Due From/Due To:
Major Funds:
General Fund $88,002 $ -
Capital Improvement Fund 312,869 -
Nonmajor Governmental Funds:
Special Revenue Funds:
Solid Waste Abatement Fund - 82,074
HRA Reimbursement Fund - 5,928
Capital Project Funds:
Special Assessment Construction Fund - 312,869
$400,871 $400,871
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 HRA component unit at December 31, 2004 are as
follows:
Interfund Interfund
Receivables Payables
Due From/Due To:
General Fund $3,074,382 $ -
Capital Projects Funds:
Lake Pointe - 1,170,203
Gateway East - 992,653
Gateway West - 786,766
57th Avenue Redevelopment - 124,760
$3,074,382 $3,074,382
The above balances are not expected to be eliminated within one year of December 31,
2004.
74
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Interfund Transfers:
Transfer In Transfer Out
Governmental Funds:
Major Funds:
General Fund $1,161,293 $3,388
Grant Management 11,997 -
Special Assessment - 360,408
Capital Improvement - 469,710
Nonmajor Funds 697,218 478,393
Total governmental funds 1,870,508 1,311,899
Proprietary Funds:
Enterprise:
Liquor - 450,000
Water 16,392 3,360
Sewer 24,588 11,700
Storm Water - 134,529
Total proprietary funds 40,980 599,589
Total $1,911,488 $1,911,488
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.
9. Reserved Fund Balances
The following reservations have been made of various fund balances of the primary government at
December 31, 2004:
General Fund:
Reserved for:
Inventory $47,094
Long-term receivables 36,728
Total General Fund 83,822
Special Revenue Funds:
Reserved for police activity 1,155,225
Debt Service Funds:
Reserved for long-term receivable 541,244
Reserved for debt service 509,547
Total Debt Service Funds 1,050,791
Total Governmental Funds $2,289,838
75
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
The HRA component unit had reserved fund balances at December 31, 2004:
Reserved for:
Debt service $3,281,746
Mortgage receivable 1,001,747
$4,283,493
10. Designated Fund Balance
The following designations have been made of various fund balances at December 31, 2004:
General Fund:
Working capital $4,080,012
Special Revenue Funds:
Cable TV Fund:
Cable TV operations 441,599
Drug and Gambling Forfeiture Fund:
Drug and gambling enforcement 27,609
F.C.C. Donations:
Fridley community center 85,135
Total Special Revenue Funds 554,343
Capital Projects Funds:
Capital Improvements Fund:
Future improvements 7,207,879
Total of designated fund balances $11,842,234
76
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
11. Tax Increment Districts
The HRA is the administering authority for the following Tax Increment Districts:
Fiscal Retained
Year Tax Capacity Values Disparity By
Established District District Name Current Original Captured Adjustments Authority
1979 1 Center City $658,523 $117,767 $540,756 $ - $540,756
1981 2 Moore Lake 495,497 33,726 461,771 - 461,771
1982 3 North Area 1,463,799 89,565 1,374,234 (289,302) 1,084,932
1984 4 Johnson/Skywood - - - - DECERTIFIED
1984 5 Paschke - - - - DECERTIFIED
1 1985 6 Lake Pointe 1,518,168 83,780 1,434,388 - 1,434,388
1986 7 Winfield 54,738 3,582 51,156 - 51,156
1986 8 Shorewood - - - - DECERTIFIED
1989 9 Onan/Old Central Avenue 431,956 42,555 389,401 - 389,401
1990 10 Northco/Phase III - - - - DECERTIFIED
1992 11 University/Osborne 61,624 26,479 35,145 - 35,145
1992 12 McGlynn's 82,514 41,254 41,260 - 41,260
1995 13 Satellite Lane Apartments 43,782 2,333 41,449 - 41,449
1995 14 Industrial Equities 69,476 15,763 53,713 - 53,713
1997 15 MN Comm Rail - - - - DECERTIFIED
1997 16 57th Avenue Replacement 25,200 7,776 17,424 - 17,424
2000 17 Gateway East 46,587 5,089 41,498 - 41,498
1995 HR1/04 Housing Replacement 4,975 543 4,432 - 4,432
1995 HR1/05 Housing Replacement 2,064 269 1,795 - 1,795
1995 HR1/06 Housing Replacement 4,983 686 4,297 - 4,297
1995 HR1/Q2 Housing Replacement 1,986 318 1,668 - 1,668
1995 HR1/Q3 Housing Replacement 1,748 393 1,355 - 1,355
1995 HR1/Q4 Housing Replacement 5,263 781 4,482 - 4,482
1995 HR1/S3 Housing Replacement 2,041 516 1,525 - 1,525
1995 HR1/S4 Housing Replacement 2,087 563 1,524 - 1,524
1995 HR1/S5 Housing Replacement 1,808 375 1,433 - 1,433
1995 HR1/S6 Housing Replacement 1,668 443 1,225 - 1,225
Totals $4,980,487 $474,556 $4,505,931 ($289,302) $4,216,629
12. Commitments and Contingencies
A. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters.
During 1987, the City established the Self Insurance Fund (an Internal Service Fund) to
account for and finance its uninsured risks of loss.
The Self Insurance Fund provides coverage for up to a maximum of$50,000 for each liability
and property claim with an annual aggregate of$100,000 for all claims. The City purchases
insurance through the League of Minnesota Cities Insurance Trust for claims in excess of
coverage provided by the fund and for all other risks of loss.
The City's workers compensation insurance policy is retrospectively rated. With this type of
policy, final premiums are determined after loss experience is known. The amount of
premium adjustment, if any, is not reasonably estimable and is not recorded until received or
paid.
77
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
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, 2004, the Self Insurance Fund has accumulated equity in the amount of
$1,919,948 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, 2004.
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.
78
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
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, 2004 is as follows:
Original 12/31/2004 Interest Maturity
Note Principal Balance Rate Date
Medtronic $10,000,000 $10,053,163 6.75% August 1, 2025
Rylund 32,000 - 8.00% February 1, 2004
McGlynn's 701,172 765,483 9.50% February 1, 2009
Paschke 60,000 11,805 7.00% August 2, 2005
Linn 175,000 175,000 8.50% February 1, 2012
Onan Murphy 496,303 87,378 8.00% February 1, 2016
Banfill 683,156 400,391 8.00% August 1, 2007
F. Construction Commitments
At December 31, 2004, the City had construction project contracts in progress. The
commitments related to the remaining contract balances are summarized as follows:
Remaining
Project Commitment
85th Avenue Trail Project $72,468
Woodside Court Street Improvement 7,865
2005-1 Street Reconstruction 11,386
Marion Hills Reservoir Replacement 97,083
Commons Park 152,750
Sanitary and Storm Sewer Realigning- 75th Avenue 64,595
Total $406,147
G. Commitments -HRA
The HRA has pledged future tax increments to the City of Fridley for the City's general
obligation tax increment debt.
79
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
13. Leases
A. Lease Expense
The City leases space for one of its liquor stores. Total costs for this lease was $94,259 for
the year ended December 31, 2004. The future minimum lease payments for this lease are
as follows:
Year Ending
December 31, Amount
2005 $95,850
2006 95,850
2007 95,850
2008 95,850
2009 98,200
2010 109,981
2011 109,981
2012 109,981
2013 109,981
2014 91,650
Total $1,013,174
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, 2004, totaled$64,611.
Terms of each lease are as follows:
Annual
Lease
Adjustment Expiration Renewal
Lessee Factor* Date Options
T-Mobile Greater of 3%or CPI 12/31/06 2 Five Year Renewals
AT&T Wireless Greater of 5% or CPI 06/30/05 4 Five Year Renewals
Qwest Wireless Greater of 3% or CPI 12/31/07 3 Five Year Renewals
Sprint Hwy 65 Greater of 5% or CPI 09/30/05 4 Five Year Renewals
Sprint Well#13 Greater of 5% or CPI 09/30/08 4 Five Year Renewals
*Amounts for future lease receipts are unavailable because they are based on the
Consumer Price Index.
80
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
14. Conduit Debt Obligation
From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to
private-sector entities for the acquisition and construction of industrial and commercial facilities
deemed to be in the public interest. The bonds are secured by the property financed and are payable
solely from payments received on the underlying mortgage loans. Upon repayment of the bonds,
ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance.
Neither the City, the State, nor any political subdivision thereof is obligated in any manner for
repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying
financial statements.
As of December 31, 2004, there were 28 series of Industrial Revenue Bonds issued. The aggregate
principal amount payable for the six series issued after July 1, 1995 is $20,401,340. 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.
15. Deficit Fund Balances
At December 31, 2004, individual funds with a deficit fund balance are as follows:
City:
Special Assessment Funds:
Solid Waste Abatement Fund $12,595
Capital Project Funds:
Special Assessment Capital Project Fund 206,489
Component unit:
Lake Pointe 960,792
Gateway East 986,329
Gateway West 797,946
57th Avenue Redevelopment 123,887
16. Contingent Receivable
In 1999, the HRA entered into an agreement with Medtronic for the sale of land from the HRA to
Medtronic. The original principal amount of the receivable was $5,000,000. Interest is added
quarterly at a rate of 8.25%. Payments on the note receivable are made in an amount equal to
11.11% of tax increment note payments received by Medtronic through 2012, and 22.22%of tax
increment note payments receivable from 2012 through 2026.
17. Subsequent Events
On June 15, 2005 the City sold two new bond issues; $1,805,000 General Obligation Improvement
Bonds and $4,645,000 General Obligation Tax Increment Refunding Bonds.
81
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
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. 40 Deposit and Investment Risk Disclosures—an amendment of GASB
Statement No. 3. The provisions of this Statement are effective for financial statements for
periods beginning after June 15, 2004.
Statement No. 42 Accounting and Financial Reporting for Impairment of Capital Assets and for
Insurance Recoveries. The provisions of this Statement are effective for fiscal periods beginning
after December 15, 2004.
Statement No. 43 Financial Reporting for Post Employment Benefit Plans Other Than Pension
Plans. The requirements of this Statement for OPEB plan reporting are effective one year prior to
the effective date of the related Statement#45 for the employer(single-employer plan)or for the
largest participating employer in the plan (multiple-employer plan).
Statement No. 44 Economic Condition Reporting: The Statistical Section–an amendment to
NCGA Statement 1. The provisions of this Statement are effective for statistical sections
prepared for periods beginning after June 15, 2005.
Statement No. 45 Accounting and Financial Reporting by Employers for Post Employment
Benefits Other Than Pension Plans. Implementation is required in three phases based on a
government's total annual revenues in the first fiscal year ending after June 15, 1999. This
Statement is effective for periods beginning after December 15, 2006, for phase 1 governments
(those with total annual revenues of$100 million or more); after December 15,2007, for phase 2
governments(those with total annual revenues of$10 million or more but less than $100 million);
and after December 15, 2008, for phase 3 governments(those with total annual revenues of less
than $10 million). Early implementation is encouraged.
The effect these standards may have on future financial statements is not determinable at this time.
82
REQUIRED SUPPLEMENTARY INFORMATION
83
i
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, 2004
■
With comparative actual amounts for the year ended December 31,2003
2004
Variance with
Final Budget- 2003
Budgeted Amounts Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Taxes and special assessments:
Current ad valorem taxes $6,372,785 $5,855,242 $5,685,097 ($170,145) $5,163,859
Delinquent ad valorem taxes 30,000 30,000 37,995 7,995 40,099
Penalties and interest 10,000 10,000 394 (9,606) 15,589
Forfeited sale-taxes 500 500 - (500) -
Special assessments 4,500 4,500 8,906 4,406 2,942
Total taxes and special assessments 6,417,785 5,900,242 5,732,392 (167,850) 5,222,489
Licenses and permits:
Licenses:
Contractor 101,580 101,580 76,308 (25,272) 54,303
Business 110,340 110,340 101,467 (8,873) 111,068
All other 28,000 28,000 32,331 4,331 32,938
Permits 283,081 283,081 392,131 109,050 359,611
Total licenses and permits 523,001 523,001 602,237 79,236 557,920
Intergovernmental revenue:
Civil defense 4,000 4,000 8,377 4,377 4,913
Federal grants - 2,169 7,949 5,780 2,734
State maintenance aid 204,000 204,000 171,674 (32,326) 205,096
State credits - 517,543 517,543 - 496,935
Local government aid 942,038 942,038 942,038 - 1,323,915
Other state grants 9,000 9,000 3,033 (5,967) 35,576
Police and fire pension 367,282 367,282 469,885 102,603 424,360
Other 18,000 23,248 8,912 (14,336) 7,159
Total intergovernmental revenue 1,544,320 2,069,280 2,129,411 60,131 2,500,688
Charges for services:
General government 847,620 847,620 828,850 (18,770) 831,381
Public safety 103,050 103,050 125,399 22,349 147,128
Public works 34,242 34,242 8,021 (26,221) 5,448
Community development 42,930 42,930 20,294 (22,636) 10,244
Recreation 312,100 312,100 306,582 (5,518) 281,311
Total charges for services 1,339,942 1,339,942 1,289,146 (50,796) 1,275,512
Fines and forfeits 176,720 176,720 173,694 (3,026) 203,533
Investment income 210,000 210,000 88,773 (121,227) 87,349
Miscellaneous revenue:
Insurance and other reimbursements 52,400 83,727 125,345 41,618 90,295
Gambling tax 75,000 75,000 84,955 9,955 82,271
Donations - 10,183 89,838 79,655 26,352
Miscellaneous 41,000 41,000 83,095 42,095 23,742
Total miscellaneous revenue 168,400 209,910 383,233 173,323 222,660
Total revenues 10,380,168 10,429,095 10,398,886 (30,209) 10,070,151
84
1 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, 2004
With comparative actual amounts for the year ended December 31,2003
2004
Variance with
Final Budget- 2003
Budgeted Amounts Actual Positive Actual
Original Final Amounts (Negative) Amounts
Expenditures:
General government:
Mayor and council:
Personal services $82,130 $82,130 $72,347 $9,783 $72,529
Supplies and other charges 30,682 30,682 29,099 1,583 48,539
Total mayor and council 112,812 112,812 101,446 11,366 121,068
Planning commission:
Supplies and other charges 205 205 1 204 5
Other commissions:
Supplies and other charges 13 52 52 - 63
City manager:
Personal services 198,778 198,778 186,875 11,903 190,695
Supplies and other charges 61,708 61,708 51,871 9,837 54,353
Total City manager _ 260,486 260,486 238,746 21,740 245,048
Human resources:
Personal services 142,405 143,206 143,206 - 144,628
Supplies and other charges 17,678 17,707 17,705 2 14,282
Total human resources 160,083 160,913 160,911 2 158,910
Legal:
Supplies and other charges 319,537 319,537 303,761 15,776 308,077
Elections:
Personal services 1,530 2,322 2,322 - -
Supplies and other charges 31,285 31,492 31,492 - 49
Total elections 32,815 33,814 33,814 0 49
Accounting:
Personal services 585,480 585,480 582,715 2,765 565,519
Supplies and other charges 86,260 86,260 74,608 11,652 107,090
Total accounting 671,740 671,740 657,323 14,417 672,609
Assessing:
Personal services 148,034 148,034 146,865 1,169 139,349
Supplies and other charges 11,362 11,362 7,538 3,824 6,691
Total assessing 159,396 159,396 154,403 4,993 146,040
MIS:
Personal services 150,106 150,106 147,159 2,947 142,900
Supplies and other charges 94,759 94,759 60,362 34,397 84,006
Total MIS 244,865 244,865 207,521 37,344 226,906
City clerk/records:
Personal services 111,695 111,695 108,324 3,371 144,092
Supplies and other charges 23,383 23,383 22,855 528 19,968
Total City clerk/records 135,078 135,078 131,179 3,899 164,060
Nondepartmental:
Personal services 80,267 70,354 32,049 38,305 21,037
Supplies and other charges 5,700 15,613 15,613 - 57,192
Total nondepartmental 85,967 85,967 47,662 38,305 78,229
85
i
Exhibit B-1
Page 3 of 4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND
For The Year Ended December 31,2004
With comparative actual amounts for the year ended December 31, 2003
2004
Variance with
Final Budget- 2003
Budgeted Amounts Actual Positive Actual
Original Final Amounts (Negative) Amounts
Expenditures: (continued)
General government: (continued)
Municipal center:
Personal services $30,908 $31,365 $31,365 $ - $24,612
Supplies and other charges 205,214 213,075 210,572 2,503 185,905
Total municipal center 236,122 244,440 241,937 2,503 210,517
Total general government 2,419,119 2,429,305 2,278,756 150,549 2,331,581
Expenditures:
Public safety:
i
Police:
Personal services 3,528,461 3,503,680 3,473,578 30,102 3,464,027
Supplies and other charges _ 361,584 393,207 393,207 - 388,059
Total police 3,890,045 3,896,887 3,866,785 30,102 3,852,086
Fire:
Personal services 764,162 871,591 871,591 - 812,693 �1
Supplies and other charges 364,459 287,404 287,404 - 178,732
Total fire 1,128,621 1,158,995 1,158,995 0 991,425
Rental inspections:
Personal services 111,230 111,230 111,051 179 64,099
Supplies and other charges 14,035 14,035 9,117 4,918 _ 7,119
Total rental inspections 125,265 125,265 120,168 5,097 71,218
Civil defense:
Supplies and other charges 15,567 15,567 10,581 4,986 10,796
Total public safety 5,159,498 5,196,714 5,156,529 40,185 4,925,525
Public works:
Engineering:
Personal services 396,718 396,718 391,410 5,308 392,059
Supplies and other charges 76,266 80,808 66,137 14,671 80,588
Total engineering 472,984 477,526 457,547 19,979 472,647
Public works and parks:
Personal services 1,375,123 1,358,898 1,358,898 - 1,352,367
Supplies and other charges 837,410 856,986 791,871 65,115 850,726
Total public works and parks 2,212,533 2,215,884 2,150,769 65,115 2,203,093
Total public works 2,685,517 2,693,410 2,608,316 85,094 2,675,740
I
Community development:
Building inspection:
Personal services 187,154 190,367 190,367 - 196,778
Supplies and other charges 88,215 104,424 104,424 - 114,635
Total building inspection 275,369 294,791 294,791 0 311,413
86
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, 2004
With comparative actual amounts for the year ended December 31, 2003
2004
Variance with
Final Budget- 2003
Budgeted Amounts Actual Positive Actual
Original Final Amounts (Negative) Amounts
Expenditures: (continued)
Community development: (continued)
Planning:
Personal services $299,668 $299,668 $267,996 $31,672 $389,295
Supplies and other charges 48,226 42,548 30,606 11,942 41,884
Total planning 347,894 342,216 298,602 43,614 431,179
Total community development 623,263 637,007 593,393 43,614 742,592
Expenditures:
Recreation and naturalist:
Recreation:
Personal services 523,303 523,303 465,274 58,029 517,429
Supplies and other charges 258,825 267,143 224,904 42,239 240,520
Total recreation 782,128 790,446 690,178 100,268 757,949
Naturalist:
Personal services 211,398 218,317 218,317 - 240,067
Supplies and other charges 54,377 52,230 52,228 2 70,859
Total naturalist 265,775 270,547 270,545 2 310,926
Total recreation and naturalist 1,047,903 1,060,993 960,723 100,270 1,068,875
Capital outlay:
Public safety 96,500 124,614 117,752 6,862 111,440
Public works 110,100 110,100 105,363 4,737 186,322
Total capital outlay 206,600 234,714 223,115 11,599 297,762
Contingency:
Current:
Supplies and other charges 100,000 30,436 - 30,436 -
Total expenditures 12,241,900 12,282,579 11,820,832 461,747 12,042,075
Excess(deficiency)of revenues over
(under)expenditures (1,861,732) (1,853,484) (1,421,946) 431,538 (1,971,924)
Other financing sources (uses):
Transfers in 1,161,293 1,161,293 1,161,293 - 1,298,595
Transfers out (4,341) (7,729) (3,388) 4,341 (14,506)
Total other financing sources (uses) 1,156,952 1,153,564 1,157,905 4,341 1,284,089
Net change in fund balance ($704,780) ($699,920) (264,041) $435,879 (687,835)
Fund balance-January 1 4,427,875 5,115,710
Fund balance- December 31 $4,163,834 $4,427,875
87
Exhibit B-2
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GRANT MANAGEMENT FUND
For The Year Ended December 31, 2004
With comparative actual amounts for the year ended December 31,2003
2004
Variance with
Final Budget- 2003
Budgeted Amounts Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues: 1
Intergovernmental:
Federal grants $71,422 $71,422 $169,308 $97,886 $349,807
State grants - 237,395 102,008 (135,387) 433,554
Other - - 29,225 29,225 28,106
Total intergovernmental 71,422 308,817 300,541 (8,276) 811,467
Miscellaneous revenue:
Donations - - 427 427 28,393
Total revenues 71,422 308,817 300,968 (7,849) 839,860
Expenditures:
Current:
General government:
Personal services 60,955 109,697 109,697 - 133,833
Supplies and other charges 11,227 203,268 203,268 - 537,584
Total general government 72,182 312,965 312,965 0 671,417
Community development:
Supplies and other charges - - - - 191,559
Total expenditures 72,182 312,965 312,965 0 862,976
Excess (deficiency)of revenues over
(under)expenditures (760) (4,148) (11,997) (7,849) (23,116)
Other financing sources (uses):
Transfers in 8,610 11,997 11,997 - 23,116
Net change in fund balance $7,850 $7,849 0 ($7,849) 0
Fund balance-January 1 - -
Fund balance-December 31 $0 $0
88
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2004
Note A LEGAL COMPLIANCE—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.
89
-This page intentionally left blank-
90
COMBINING AND INDIVIDUAL FUND STATEMENTS AND
SCHEDULES
91
-This page intentionally left blank-
92
NONMAJOR GOVERNMENTAL FUNDS
93
-This page intentionally left blank-
94
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.
CAPITAL PROJECTS FUNDS
The Capital Projects Funds are established to account for the resources expended to
acquire assets of a relatively permanent nature other than those financed by Enterprise
Funds.
95
-This page intentionally left blank-
96
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 account for the residual assets refunded to the City from the
Public Employees Retirement Association's police consolidation account.
97
-This page intentionally left blank-
98
NONMAJOR CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the resources expended to acquire
permanent or long-term assets. These funds are established to provide special
accounting for bond proceeds, grants and contributions designated for the acquisition of
capital assets.
Special Assessment Fund -This 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 for primarily by the benefited property owner.
99
Exhibit C-1
CITY OF FRIDLEY, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2004
With comparative totals for December 31, 2003
Capital
Projects/
Special Totals
Special Assessment Nonmajor Governmental Funds
Revenue Construction 2004 2003
Assets
Cash and investments $1,698,554 $131,747 $1,830,301 $2,111,832
Receivables:
Accounts 64,547 - 64,547 58,954
Special assessments - 35,050 35,050 40,611
Due from component unit 5,996 - 5,996 11,353
Due from other governments 61,029 - 61,029 59,515
Total assets $1,830,126 $166,797 $1,996,923 $2,282,265
Liabilities and Fund Balance
Liabilities: ■
Accounts payable $32,705 $ - $32,705 $4,131
Deposits payable 10,025 - 10,025 10,027
Contracts payable - 25,366 25,366 39,954
Salaries payable 2,377 - 2,377 5,763
Deferred revenue - 35,051 35,051 40,611
Due to other funds 88,002 312,869 400,871 301,624
Due to other governments 44 - 44 7
Total liabilities 133,153 373,286 506,439 402,117
Fund balance(deficit):
Reserved 1,155,225 - 1,155,225 1,611,017
Unreserved:
Designated 554,343 - 554,343 560,995
Undesignated (12,595) (206,489) (219,084) (291,864)
Total fund balance (deficit) 1,696,973 (206,489) 1,490,484 1,880,148
Total liabilities and fund balance $1,830,126 $166,797 $1,996,923 $2,282,265
100
Exhibit C-2
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2004
With comparative total for the year ended December 31, 2003
Capital
Projects/ Totals
Special Nonmajor
Special Assessment Governmental Funds
Revenue Construction 2004 2003
Revenues:
Special assessments $ - $16,395 $16,395 $16,576
Licenses and permits 183,345 - 183,345 164,621
Intergovernmental revenue 88,649 - 88,649 78,027
Charges for services 228,420 15,687 244,107 224,917
Fines and forfeits 3,184 - 3,184 12,835
Investment income 30,262 2,028 32,290 37,668
Miscellaneous 1,740 - 1,740 4,834
Total revenues 535,600 34,110 569,710 539,478
Expenditures:
Current:
General government 532,246 13,548 545,794 474,252
Public works - - - 36,681
Capital outlay - 632,405 632,405 685,049
Total expenditures 532,246 645,953 1,178,199 1,195,982
Excess (deficiency)of revenues over
(under)expenditures 3,354 (611,843) (608,489) (656,504)
Other financing sources(uses):
Transfers in - 697,218 697,218 735,104
Transfers out (478,393) - (478,393) (625,738)
Total other financing sources (uses) (478,393) 697,218 218,825 109,366
Net change in fund balance (475,039) 85,375 (389,664) (547,138)
Fund balance-January 1 2,172,012 (291,864) 1,880,148 2,427,286
Fund balance December 31 $1,696,973 ($206,489) $1,490,484 $1,880,148
101
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2004
With comparative totals for December 31,2003
Cable Solid Waste
Assets TV Abatement
Cash and investments $411,867 $ -
Accounts receivable 44,234 20,313
Due from component unit - -
Due from other governments - 61,029
Total assets $456,101 $81,342
Liabilities and Fund Balance
Liabilities:
Accounts payable $3,461 $10,458
Deposits payable 10,025 -
Salaries payable 1,016 1,361
Due to other funds - 82,074
Due to other governments - 44
Total liabilities 14,502 93,937
Fund balance:
Reserved - -
Unreserved:
Designated for special revenue programs 441,599 -
Undesignated - (12,595)
Total fund balance 441,599 (12,595)
Total liabilities and fund balance $456,101 $81,342
102
Exhibit C-3
Totals
Drug and Nonmajor
HRA Gambling F.C.C. Police Special Revenue Funds
Reimbursement Forfeiture Donations Activity 2004 2003
$ - $46,327 $85,135 $1,155,225 $1,698,554 $2,111,832
64,547 58,954
5,996 - - - 5,996 11,353
- 61,029 59,515
$5,996 $46,327 $85,135 $1,155,225 $1,830,126 $2,241,654
$68 $18,718 $ - $ - $32,705 $352
- - - - 10,025 10,027
- - - - 2,377 5,560
5,928 - - - 88,002 53,696
- - - - 44 7
5,996 18,718 0 0 133,153 69,642
- - - 1,155,225 1,155,225 1,611,017
- 27,609 85,135 - 554,343 560,995
- - - - (12,595) -
0 27,609 85,135 1,155,225 1,696,973 2,172,012
$5,996 $46,327 $85,135 $1,155,225 $1,830,126 $2,241,654
103
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2004
With comparative totals for the year ended December 31, 2003
Cable Solid Waste
TV Abatement
Revenues:
Licenses and permits $183,345 $ -
Intergovernmental revenue - 68,714
Charges for services 699 227,721
Fines and forfeits - -
Investment income 6,256 -
Miscellaneous - 1,440
Total revenues 190,300 297,875
Expenditures:
Current:
General government 149,054 330,316
Excess (deficiency)of revenues
over(under)expenditures 41,246 (32,441)
Other financing sources (uses):
Transfers out - -
Net change in fund balance 41,246 (32,441)
Fund balance -January 1 400,353 19,846
Fund balance- December 31 $441,599 ($12,595)
104
Exhibit C-4
Drug and Totals
HRA Gambling F.C.C. Police Nonmajor Special Revenue Funds
Reimbursement Forfeiture Donations Activity 2004 2003
$ - $ - $ - $ - $183,345 $164,621
19,935 - - - 88,649 78,027
- - - - 228,420 224,917
- 3,184 - - 3,184 12,835
- - 1,405 22,601 30,262 35,638
- 300 - - 1,740 4,834
19,935 3,484 1,405 22,601 535,600 520,872
19,935 27,649 5,292 - 532,246 474,252
0 (24,165) (3,887) 22,601 3,354 46,620
- - (478,393) (478,393) (595,195)
- (24,165) (3,887) (455,792) (475,039) (548,575)
- 51,774 89,022 1,611,017 2,172,012 2,720,587
$0 $27,609 $85,135 $1,155,225 $1,696,973 $2,172,012
105
Exhibit D-1
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -CABLE TV FUND
COMPARATIVE BALANCE SHEET
December 31,2004 and 2003
Assets 2004 2003
Cash and investments $411,867 $371,727
Accounts receivable 44,234 41,454
Total assets $456,101 $413,181
Liabilities and Fund Balance
Liabilities:
Accounts payable $3,461 $270
Deposits payable 10,025 10,027
Salaries payable 1,016 2,524
Due to other governments - 7
Total liabilities 14,502 12,828
Fund balance:
Unreserved:
Designated for special revenue programs 441,599 400,353
Total liabilities and fund balance $456,101 $413,181
106
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 31,2004
With comparative actual amounts for the year ended December 31,2003
2004 2003
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Licenses-franchise fee $175,000 $206,644 $183,345 $164,621
Charges for services 1,000 1,000 699 801
Investment income 6,000 6,000 6,256 5,865
Total revenues 182,000 213,644 190,300 171,287
Expenditures:
Current:
General government:
Personal services 100,839 104,878 104,878 102,631
Supplies and other charges 16,572 44,176 44,176 21,388
Total expenditures 117,411 149,054 149,054 124,019
Net change in fund balance $64,589 $64,590 41,246 47,268
Fund balance-January 1 400,353 353,085
Fund balance- December 31 $441,599 $400,353
107
Exhibit D-3
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -SOLID WASTE ABATEMENT FUND
COMPARATIVE BALANCE SHEET
December 31,2004 and 2003
Assets 2004 2003
Cash $ - $ -
Accounts receivable 20,313 17,500
Due from other governments 61,029 47,807
Total assets $81,342 $65,307
Liabilities and Fund Balance
Liabilities:
Accounts payable $10,458 $82
Salaries payable 1,361 3,036
Due to other funds 82,074 42,343
Due to other governments 44 -
Total liabilities 93,937 45,461
Fund balance:
Unreserved:
Undesignated (12,595) -
Designated for special revenue programs - 19,846
Total fund balance (12,595) 19,846
Total liabilities and fund balance $81,342 $65,307
108
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, 2004
With comparative actual amounts for the year ended December 31,2003
2004 2003
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Intergovernmental revenue:
State $51,274 $51,274 $68,714 $52,966
Charges for services 218,353 238,314 227,721 224,116
Miscellaneous 5,181 5,181 1,440 725
Total revenues 274,808 294,769 297,875 277,807
Expenditures:
Current:
General government:
Personal services 68,614 63,576 63,576 66,981
Supplies and other charges 241,739 266,738 266,740 243,852
Total expenditures 310,353 330,314 330,316 310,833
Net change in fund balance ($35,545) ($35,545) (32,441) (33,026)
Fund balance-January 1 19,846 52,872
Fund balance (deficit)- December 31 ($12,595) $19,846
109
Exhibit D-5
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -HRA REIMBURSEMENT FUND
COMPARATIVE BALANCE SHEET
December 31, 2004 and 2003
Assets 2004 2003
Due from component unit $5,996 $11,353
Total assets $5,996 $11,353
Liabilities and Fund Balance
Liabilities:
Accounts payable $68 $ -
Due to other funds 5,928 11,353
Total liabilities 5,996 11,353
Fund balance - -
Total liabilities and fund balance $5,996 $11,353
110
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, 2004
With comparative actual amounts for the year ended December 31, 2003
2004 2003
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Intergovernmental revenue:
Housing and Redevelopment Authority $ - $19,935 $19,935 $25,061
Expenditures:
Current:
General government:
Supplies and other charges - 19,935 19,935 25,476
Net change in fund balance $0 $0 0 (415)
Fund balance-January 1 - 415
Fund balance- December 31 $0 $0
111
Exhibit D-7
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -DRUG AND GAMBLING FORFEITURE FUND
COMPARATIVE BALANCE SHEET
December 31, 2004 and 2003
Assets 2004 2003
Cash and investments $46,327 $40,066
Due from other governments - 11,708
Total assets $46,327 $51,774
Liabilities and Fund Balance
Liabilities:
Accounts payable $18,718 $ -
Due to other governments - -
Total liabilities 18,718 0
Fund balance:
Unreserved:
Designated for special revenue programs 27,609 51,774
Total liabilities and fund balance $46,327 $51,774
112
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, 2004
With comparative actual amounts for the year ended December 31, 2003
2004 2003
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Fines and forfeits $ - $3,484 $3,184 $12,835
Miscellaneous - - 300 4,109
Total revenues 0 3,484 3,484 16,944
Expenditures:
Current:
General government:
Supplies and other charges - 27,649 27,649 12,042
Net change in fund balance $0 ($24,165) (24,165) 4,902
Fund balance-January 1 51,774 46,872
Fund balance- December 31 $27,609 $51,774
113
Exhibit D-9
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -F.C.C. DONATIONS FUND
COMPARATIVE BALANCE SHEET
December 31,2004 and 2003
Assets 2004 2003
Cash and investments $85,135 $89,022
Total assets $85,135 $89,022
Liabilities and Fund Balance
Liabilities $ - $ -
Fund balance:
Unreserved:
Designated for special revenue programs 85,135 89,022
Total liabilities and fund balance $85,135 $89,022
114
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, 2004
With comparative actual amounts for the year ended December 31,2003
2004 2003
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Investment income $ - $1,405 $1,405 $1,461
Expenditures:
Current:
General government:
Supplies and other charges - 5,292 5,292 1,882
Net change in fund balance $0 ($3,887) (3,887) (421)
Fund balance-January 1 89,022 89,443
Fund balance- December 31 $85,135 $89,022
115
Exhibit D-11
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -POLICE ACTIVITY FUND
COMPARATIVE BALANCE SHEET
December 31, 2004 and 2003
Assets 2004 2003
Cash and investments $1,155,225 $1,611,017
Total assets $1,155,225 $1,611,017
Liabilities and Fund Balance
Liabilities $ - $ -
Fund balance:
Reserved for police activity 1,155,225 1,611,017
Total liabilities and fund balance $1,155,225 $1,611,017
116
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, 2004
With comparative actual amounts for the year ended December 31,2003
2004 2003
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Investment income $50,000 $50,000 $22,601 $28,312
Expenditures - - - -
Excess (deficiency)of revenues over(under)expenditures 50,000 50,000 22,601 28,312
Other financing sources (uses):
Transfers out:
General Fund (478,393) (478,393) (478,393) (345,195)
Net change in fund balance ($428,393) ($428,393) (455,792) (316,883)
Fund balance-January 1 1,611,017 1,927,900
Fund balance- December 31 $1,155,225 $1,611,017
117
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, 2004
With comparative actual amounts for the year ended December 31, 2003
2004 2003
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Taxes $95,860 $88,075 $86,145 $85,742
Special assessments - - 1,275 1,263
Intergovernmental revenue:
State - 358,881 688,881 684,841
Investment income 128,097 128,097 109,774 106,709
Miscellaneous 10,000 10,000 25,697 131,366
Total revenues 233,957 585,053 911,772 1,009,921
Expenditures:
Current:
General government:
Supplies and other charges - 2,225 2,225 3,880
Capital outlay 15,000 14,250 14,250 722,459
Total expenditures 15,000 16,475 16,475 726,339
Excess (deficiency)of revenues over(under)expenditures 218,957 568,578 895,297 283,582
Other financing sources(uses):
Transfers in - - - 130,543
Transfers out (50,000) (469,710) (469,710) (480,000)
Total other financing sources (uses): (50,000) (469,710) (469,710) (349,457)
Net change in fund balance $168,957 $98,868 425,587 (65,875)
Fund balance-January 1 6,782,292 6,848,167
Fund balance-December 31 $7,207,879 $6,782,292
118
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.
119
Exhibit F-1
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2004
With comparative totals for December 31, 2003
Employee Self Information Totals
Benefits Insurance Systems 2004 2003
Assets:
Current assets:
Cash and investments $945,094 $1,925,073 $788,116 $3,658,283 $3,710,672
Due from component unit 103 - - 103 -
Total current assets 945,197 1,925,073 788,116 3,658,386 3,710,672
Capital assets, at cost:
Machinery and equipment - - 1,331,455 1,331,455 1,226,685
Less: accumulated depreciation - - (941,647) (941,647) (810,820)
Net capital assets 0 0 389,808 389,808 415,865
Total assets 945,197 1,925,073 1,177,924 4,048,194 4,126,537
Liabilities:
Current liabilities:
Accounts payable - 5,125 35,189 40,314 824
Payroll deductions payable 74,300 - - 74,300 79,082
Compensated absences payable-
current portion 613,417 - - 613,417 592,425
Total current liabilities 687,717 5,125 35,189 728,031 672,331
Noncurrent liabilities:
Compensated absences payable 172,368 - - 172,368 245,159
Total liabilities 860,085 5,125 35,189 900,399 917,490
Net assets:
Invested in capital assets, net
of related debt - - 389,808 389,808 415,865
Unrestricted 85,112 1,919,948 752,927 2,757,987 2,793,182
Total net assets $85,112 $1,919,948 $1,142,735 $3,147,795 $3,209,047
120
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, 2004
With comparative totals for the year ended December 31, 2003
Employee Self Information Totals
Benefits Insurance Systems 2004 2003
Operating revenues:
Charges for services $ - $ - $152,067 $152,067 $158,202
Operating expenses:
Personal services 7,518 - - 7,518 40,603
Supplies and other charges 2,455 90,094 12,830 105,379 61,964
Depreciation - - 160,285 160,285 171,299
Total operating expenses 9,973 90,094 173,115 273,182 273,866
Operating income(loss) (9,973) (90,094) (21,048) (121,115) (115,664)
N Dnoperating revenues:
Investment income 15,720 31,349 12,114 59,183 61,024
Gain (loss)on disposal of capital assets - - 680 680 -
Total nonoperating revenues 15,720 31,349 12,794 59,863 61,024
Income(loss) before transfers 5,747 (58,745) (8,254) (61,252) (54,640)
Transfers out:
General Fund - - - - (20,000)
Change in net assets 5,747 (58,745) (8,254) (61,252) (74,640)
Nat assets-January 1 79,365 1,978,693 1,150,989 3,209,047 3,283,687
Nat assets- December 31 $85,112 $1,919,948 $1,142,735 $3,147,795 $3,209,047
121
Exhibit F-3
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For The Year Ended December 31, 2004
With comparative totals for the year ended December 31,2003
Employee Self Information Totals
Benefits Insurance Systems 2004 2003
Cash flows from operating activities:
Receipts from interfund services provided $ - $ - $152,067 $152,067 $158,942
Receipts from component units - - - - 274
Payment to suppliers (2,688) (85,547) (12,843) (101,078) (159,171)
Payment to employees (64,099) - - (64,099) (26,604)
Net cash flows from operating activities (66,787) (85,547) 139,224 (13,110) (26,559)
Cash flows from noncapital financing activities:
Transfers out - - - - (20,000)
Cash flows from capital and related
financing activities:
Acquisition of capital assets - - (128,181) (128,181) (124,739)
Proceeds from sale of capital assets - - 29,822 29,822 -
Net cash flows from capital and
and related financing activities 0 0 (98,359) (98,359) (124,739)
Cash flows from investing activities:
Investment income 15,720 31,349 12,114 59,183 61,024
Net increase (decrease)in cash and
cash equivalents (51,067) (54,198) 52,979 (52,286) (110,274)
Cash and cash equivalents-January 1 996,264 1,979,271 735,137 3,710,672 3,820,946
Cash and cash equivalents-December 31 $945,197 $1,925,073 $788,116 $3,658,386 $3,710,672
Reconciliation of operating income(loss)to net
cash provided (used)by operating activities:
Operating income(loss) ($9,973) ($90,094) ($21,048) ($121,115) ($115,664)
Adjustments to reconcile operating income
(loss)to net cash flows from operating
activities:
Depreciation - - 160,285 160,285 171,299
Changes in assets and liabilities:
Decrease (increase)in receivables - - - - 1,014
Increase(decrease)in payables (56,814) 4,547 (13) (52,280) (83,208)
Total adjustments (56,814) 4,547 160,272 108,005 89,105
Net cash provided by operating activities ($66,787) ($85,547) $139,224 ($13,110) ($26,559)
122
Exhibit F-4
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND -EMPLOYEE BENEFITS FUND
COMPARATIVE STATEMENT OF NET ASSETS
December 31, 2004 and 2003
2004 2003
Assets:
Cash and investments $945,094 $996,264
Due from component unit 103 -
Total current assets 945,197 996,264
Liabilities:
Current liabilities:
Accounts payable - 233
Payroll deductions payable 74,300 79,082
Compensated absences payable -current portion 613,417 592,425
Total current liabilities 687,717 671,740
Noncurrent liabilities:
Compensated absences payable 172,368 245,159
Total liabilities 860,085 916,899
Net assets:
Unrestricted 85,112 79,365
Total net assets $85,112 $79,365
123
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, 2004
With comparative amounts for year ended December 31, 2003
2004 2003
Operating revenues $ - $ -
Operating expenses:
Personal services 7,518 28,633
Supplies and other charges 2,455 3,301
Total operating expenses 9,973 31,934
Operating income (loss) (9,973) (31,934)
Nonoperating revenues:
Investment income 15,720 16,957
Income (loss) before transfers 5,747 (14,977)
Transfers out:
General Fund - (20,000)
Change in net assets 5,747 (34,977)
Net assets-January 1 79,365 114,342
Net assets- December 31 $85,112 $79,365
124
Exhibit F-6
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND -EMPLOYEE BENEFITS FUND
COMPARATIVE STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2004
With comparative amounts for the year ended December 31, 2003
2004 2003
Cash flows from operating activities:
Payment to suppliers ($2,688) ($3,068)
Payment to employees (64,099) (26,604)
Net cash flows from operating activities (66,787) (29,672)
Cash flows from noncapital financing activities:
Transfers to General Fund - (20,000)
Cash flows from investing activities:
Investment income 15,720 16,957
Net increase (decrease) in cash and cash equivalents (51,067) (32,715)
Cash and cash equivalents-January 1 996,264 1,028,979
Cash and cash equivalents- December 31 $945,197 $996,264
Reconciliation of operating income (loss)to net cash
provided (used)by operating activities:
Operating income (loss) ($9,973) ($31,934)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Changes in assets and liabilities:
Increase (decrease)in payables (56,814) 2,262
Total adjustments (56,814) 2,262
Net cash provided (used)by operating activities ($66,787) ($29,672)
125
Exhibit F-7
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND-SELF INSURANCE FUND
COMPARATIVE STATEMENT OF NET ASSETS
December 31, 2004
With comparative amounts for December 31, 2003
2004 2003
Assets:
Current assets:
Cash and investments $1,925,073 $1,979,271
Liabilities:
Current liabilities:
Accounts payable 5,125 578
Net assets:
Unrestricted 1,919,948 1,978,693
Total net assets $1,919,948 $1,978,693
126
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, 2004
With comparative amounts for year ended December 31, 2003
2004 2003
Operating revenues $ - $ -
Operating expenses:
Personal services - 11,970
Supplies and other charges 90,094 58,663
Total operating expenses 90,094 70,633
Operating income (loss) (90,094) (70,633)
Nonoperating revenues:
Investment income 31,349 32,406
Change in net assets (58,745) (38,227)
Net assets-January 1 1,978,693 2,016,920
Net assets- December 31 $1,919,948 $1,978,693
127
Exhibit F-9
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND -SELF INSURANCE FUND
COMPARATIVE STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2004
With comparative amounts for the year ended December 31,2003
2004 2003
Cash flows from operating activities:
Receipts from interfund services provided $ - $740
Receipts from component units - 274
Payment to suppliers (85,547) (125,019)
Net cash flows from operating activities (85,547) (124,005)
Cash flows from investing activities:
Investment income 31,349 32,406
Net increase (decrease) in cash and cash equivalents (54,198) (91,599)
Cash and cash equivalents-January 1 1,979,271 2,070,870
Cash and cash equivalents- December 31 $1,925,073 $1,979,271
Reconciliation of operating income (loss)to net cash
provided (used)by operating activities:
Operating income (loss) ($90,094) ($70,633)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Changes in assets and liabilities:
Decrease (increase) in receivables - 1,014
Increase (decrease) in payables 4,547 (54,386)
Total adjustments 4,547 (53,372)
Net cash provided (used) by operating activities ($85,547) ($124,005)
128
Exhibit F-10
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND -INFORMATION SYSTEMS FUND
COMPARATIVE STATEMENT OF NET ASSETS
December 31, 2004
With comparative amounts for December 31, 2003
2004 2003
Assets:
Current assets:
Cash and investments $788,116 $735,137
Capital assets, at cost:
Property and equipment 1,331,455 1,226,685
Less: accumulated depreciation (941,647) (810,820)
Net capital assets 389,808 415,865
Total assets 1,177,924 1,151,002
Liabilities:
Current liabilities:
Accounts payable 35,189 13
Net assets:
Invested in capital assets, net of related debt 389,808 415,865
Unrestricted 752,927 735,124
Total net assets $1,142,735 $1,150,989
129
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 31,2004
With comparative amounts for the year ended December 31, 2003
2004 2003
Operating revenues:
Charges for services $152,067 $158,202
Operating expenses:
Supplies and other charges 12,830 -
Depreciation 160,285 171,299
Total operating expenses 173,115 171,299
Operating income (loss) (21,048) (13,097)
Nonoperating revenues:
Investment income 12,114 11,661
Gain (loss)on disposal of fixed assets 680 -
Total nonoperating revenues 12,794 11,661
Change in net assets (8,254) (1,436)
Net assets-January 1 1,150,989 1,152,425
Net assets- December 31 $1,142,735 $1,150,989
130
Exhibit F-12
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND -INFORMATION SYSTEMS FUND
COMPARATIVE STATEMENT OF CASH FLOWS
For The Year Ended December 31,2004
With comparative amounts for the year ended December 31, 2003
2004 2003
Cash flows from operating activities:
Receipts from interfund services provided $152,067 $158,202
Payment to suppliers (12,843) (31,084)
Net cash flows from operating activities 139,224 127,118
Cash flows from capital and related
financing activities:
Acquisition of capital assets (128,181) (124,739)
Proceeds from sale of capital assets 29,822 -
Net cash flows from capital
and relatd financing activities (98,359) (124,739)
Cash flows from investing activities:
Investment income 12,114 11,661
Net increase (decrease)in cash and cash equivalents 52,979 14,040
Cash and cash equivalents-January 1 735,137 721,097
Cash and cash equivalents- December 31 $788,116 $735,137
Reconciliation of operating income (loss)to net cash
provided (used) by operating activities:
Operating income (loss) ($21,048) ($13,097)
Adjustments to reconcile operating income(loss)
to net cash flows from operating activities:
Depreciation 160,285 171,299
Changes in assets and liabilities:
Increase (decrease)in payables (13) (31,084)
Total adjustments 160,272 140,215
Net cash provided by operating activities $139,224 $127,118
131
-This page intentionally left blank-
132
HOUSING AND REDEVELOPMENT AUTHORITY
COMPONENT UNIT
133
CITY OF FRIDLEY, MINNESOTA
BALANCE SHEET-GOVERNMENTAL FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
December 31, 2004
With comparative totals for December 31, 2003
North Area/
Revolving Univ. Ind.
General Loan Park
Assets
Cash and investments $6,197,013 $3,324,954 $1,994,141 '
Cash with escrow agent - - 142,929
Receivables:
Accounts 869 - -
Interest 20,006 - -
Taxes:
Unremitted 2,458 - 85,932
Delinquent 4,005 - 47,247
Mortgage:
Deferred - 888,914 52,841
Allowance for uncollectible accounts - (29,000) -
Due from primary government 12,478 - -
Due from other funds 3,074,382 - -
Land held for resale - - 192,000
Total assets $9,311,211 $4,184,868 $2,515,090
Liabilities and Fund Balance
Liabilities:
Accounts payable $23,951 $250 $ -
Due to primary government 47,674 - 997
Due to other funds - - -
Salaries payable 1,528 - -
Deferred revenue 4,005 - 239,247
Loan payable to primary government - 541,244 -
Total liabilities 77,158 541,494 240,244 '
Fund balance:
Reserved for debt service 3,000,000 - 281,746 ,
Reserved for mortgage receivable - 888,914 52,841
Unreserved, undesignated 6,234,053 2,754,460 1,940,259
Total fund balance 9,234,053 3,643,374 2,274,846
Total liabilities and fund balance $9,311,211 $4,184,868 $2,515,090
I
134
` Exhibit G-1
Other Totals
Lake Gateway Gateway Governmental Governmental Funds
Pointe East West Funds 2004 2003
$ - $5,737 $ - $3,310,598 $14,832,443 $15,014,720
- - - - 142,929 135,106
442,440 - - - 443,309 67,434
- - - - 20,006 29,550
2,917 1,284 - 7,631 100,222 139,461
1,802 1,286 - 13,405 67,745 66,239
- - - 59,992 1,001,747 892,428
- - - (600) (29,600) (29,600)
- - - - 12,478 191,559
- - - - 3,074,382 2,880,393
50,000 - 633,000 180,000 1,055,000 955,000
$497,159 $8,307 $633,000 $3,571,026 $20,720,661 $20,342,290
$231,388 $ - $10,705 $992 $267,286 $643,235
4,558 697 475 6,871 61,272 64,733
1,170,203 992,653 786,766 124,760 3,074,382 2,880,393
- - - - 1,528 5,253
51,802 1,286 633,000 193,405 1,122,745 1,021,238
- - - - 541,244 599,420
1,457,951 994,636 1,430,946 326,028 5,068,457 5,214,272
- - - - 3,281,746 3,281,746
- - - 59,992 1,001,747 892,428
(960,792) (986,329) (797,946) 3,185,006 11,368,711 10,953,844
(960,792) (986,329k (797,946) 3,244,998 15,652,204 15,128,018
$497,159 $8,307 $633,000 $3,571,026 $20,720,661 $20,342,290
135
■
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, 2004
With comparative totals for the year ended December 31, 2003
North Area/
Revolving Univ. Ind. f
General Loan Park
Revenues:
Tax increment $ - $ - $1,040,939
Property taxes 262,092 -
Investment income 80,702 39,476 26,260
Intergovernmental revenue 18,399 - -
Mortgage interest earnings 5,527 38,930 -
Rental 9,600 - -
Sale of real estate 46,627 - -
Miscellaneous - - 1,870
Receipt from primary government 28,355 - -
Total revenues 451,302 78,406 1,069,069
Expenditures:
Personal services 92,760 - -
Supplies and other charges 222,482 22,264 1,848
Capital outlay - - -
Developer assistance - - 88,266
Interest expense - 29,252 -
Payment to primary government 5,641 - 290,556
Total expenditures 320,883 51,516 380,670
Excess (deficiency)of revenues over
expenditures 130,419 26,890 688,399
Other financing sources (uses): I
Transfers in 6,057 87,429 -
Transfers out (87,431) (12,437) (1,209)
Total other financing sources (uses) (81,374) 74,992 (1,209)
Net change in fund balance 49,045 101,882 687,190
■
Fund balance-January 1 9,185,008 3,541,492 1,587,656
Fund balance- December 31 $9,234,053 $3,643,374 $2,274,846
136
Exhibit G-2
Other Totals
Lake Gateway Gateway Governmental Governmental Funds
Pointe East West Funds 2004 2003
$450,615 $33,747 $ - $1,553,125 $3,078,426 $3,627,239
- - - - 262,092 239,382
2,750 871 - 35,288 185,347 199,123
4,990 - 43,053 66,442 73,222
- - 442 44,899 64,196
- - - - 9,600 9,600
- - - 46,627 135,837
- - - 9,550 11,420 10,330
- - - 28,355 280,381
453,365 39,608 0 1,641,458 3,733,208 4,639,310
- - - - 92,760 90,318
23,241 1,541 34,845 36,666 342,887 350,677
- - 334,684 - 334,684 587,235
410,274 - - 231,285 729,825 1,546,265
- - - 29,252 32,056
- - - 1,383,417 1,679,614 1,636,291
433,515 1,541 369,529 1,651,368 3,209,022 4,242,842
19,850 38,067 (369,529) (9,910) 524,186 396,468
- - 10,000 103,486 144,685
(226) (43) - (2,140) (103,486) (144,685)
(226) (43) 0 7,860 0 0
19,624 38,024 (369,529) (2,050) 524,186 396,468
(980,416) (1,024,353) (428,417) 3,247,048 15,128,018 14,731,550
($960,792) ($986,329) ($797,946) $3,244,998 $15,652,204 $15,128,018
k
137
Exhibit G-3
CITY OF FRIDLEY, MINNESOTA
COMBINING BALANCE SHEET -HOUSING AND REDEVELOPMENT AUTHORITY
NONMAJOR GOVERMENTAL FUNDS
December 31,2004
With comparative totals for December 31, 2003
Special Totals
Revenue/ Nonmajor
Housing Capital Governmental Funds
Programs Projects 2004 2003
Assets
Cash and investments $7,092 $3,303,506 $3,310,598 $3,300,266
Receivables:
Taxes:
Unremitted - 7,631 7,631 15,437
Delinquent - 13,405 13,405 13,352
Mortgage:
Deferred 13,356 46,636 59,992 81,060 _
Allowance for uncollectible accounts (600) - (600) (600)
Land held for resale - 180,000 180,000 180,000
Total assets $19,848 $3,551,178 $3,571,026 $3,589,515
Liabilities and Fund Balance
Liabilities:
Accounts payable $905 $87 $992 $18,088
Due to primary government - 6,871 6,871 6,267
Due to other funds - 124,760 124,760 124,760
Deferred revenue - 193,405 193,405 193,352
Total liabilities 905 325,123 326,028 342,467
Fund balance:
Reserved for mortgage receivable 13,356 46,636 59,992 81,060
Unreserved, undesignated 5,587 3,179,419 3,185,006 3,165,988
Total fund balance 18,943 3,226,055 3,244,998 3,247,048
Total liabilities and fund balance $19,848 $3,551,178 $3,571,026 $3,589,515
138
Exhibit G-4
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES -HOUSING AND REDEVELOPMENT AUTHORITY
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2004
With comparative totals for the year ended December 31, 2003
Special Totals
Revenue/ Nonmajor
Housing Capital Governmental Funds
Programs Projects 2004 2003
Revenues:
Tax increment $ - $1,553,125 $1,553,125 $1,374,943
Investment income - 35,288 35,288 38,416
Intergovernmental revenue - 43,053 43,053 39,630
Mortgage interest earnings - 442 442 980
Miscellaneous 9,550 - 9,550 -
Total revenues 9,550 1,631,908 1,641,458 1,453,969
Expenditures:
Supplies and other charges 16,747 19,919 36,666 54,373
Developer assistance - 231,285 231,285 229,783
Payment to primary government - 1,383,417 1,383,417 494,732
Total expenditures 16,747 1,634,621 1,651,368 778,888
Excess (deficiency)of revenues over
expenditures (7,197) (2,713) (9,910) 675,081
Other financing sources (uses):
Transfer in 10,000 - 10,000
Transfer out (1) (2,139) (2,140) (53,227)
Total other financing sources 9,999 (2,139) 7,860 (53,227)
Net change in fund balance 2,802 (4,852) (2,050) 621,854
Fund balance -January 1 16,141 3,230,907 3,247,048 2,625,194
Fund balance- December 31 $18,943 $3,226,055 $3,244,998 $3,247,048
k
r
139
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
December 31, 2004
With comparative totals for December 31, 2003
Center Moore University/
City Lake Area Winfield Onan Osborne
Assets
Cash and investments $519,484 $589,172 $393,974 $678,291 $167,102
Receivables:
Taxes:
Unremitted 1,919 3,901 61 418 -
Delinquent 6,079 3,770 202 3,222 -
Mortgage:
Deferred - 5,337 - - -
Land held for resale - 105,000 - - -
Total assets $527,482 $707,180 $394,237 $681,931 $167,102
Liabilities and Fund Balance ■
Liabilities:
Accounts payable $ - $ - $ - $ - $ -
Due to primary government - 982 760 728 728
Due to other funds - - - - -
Deferred revenue 6,079 108,770 202 3,222 -
Totalliabilities 6,079 109,752 962 3,950 728
Fund balance (deficit):
Reserved for mortgage receivable - 5,337 - - -
Unreserved, undesignated 521,403 592,091 393,275 677,981 166,374
Total fund balance(deficit) 521,403 597,428 393,275 677,981 166,374 '
Total liabilities and fund balance $527,482 $707,180 $394,237 $681,931 $167,102
i
140
Exhibit G-5
Totals
Nonmajor
McGlynn Satellite Business 57th Avenue Housing Capital Project Funds
Bakeries Lane Apts. Center Redevelopment Replace.#1 2004 2003
$83,158 $225,730 $478,916 $1,599 $166,080 $3,303,506 $3,292,629
- 1,302 28 2 - 7,631 15,437
- - 130 2 - 13,405 13,352
- - 41,299 - - 46,636 67,704
- - - - 75,000 180,000 180,000
$83,158 $227,032 $520,373 $1,603 $241,080 $3,551,178 $3,569,122
$ - $ - $87 $ - $ - $87 $13,836
728 824 760 728 633 6,871 6,267
- - - 124,760 - 124,760 124,760
- - 130 2 75,000 193,405 193,352
728 824 977 125,490 75,633 325,123 338,215
- 41,299 - - 46,636 67,704
82,430 226,208 478,097 (123,887) 165,447 3,179,419 3,163,203
82,430 226,208 519,396 (123,887) 165,447 3,226,055 3,230,907
$83,158 $227,032 $520,373 $1,603 $241,080 $3,551,178 $3,569,122
141
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, 2004
With comparative totals for the year ended December 31, 2003
Center Moore University/
City Lake Area Winfield Onan Osborne
Revenues:
Tax increment $500,957 $434,520 $48,935 $373,470 $33,477
Investment income - 9,970 4,462 7,850 1,869
Intergovernmental revenue 20,109 14,676 - - -
Mortgage interest earnings - 442 - - -
Total revenues 521,066 459,608 53,397 381,320 35,346
Expenditures:
Supplies and other charges - 1,824 1,604 1,575 1,573
Developer assistance - - - 198,168 -
Payment to primary government 268,284 1,115,133 - - -
Total expenditures 268,284 1,116,957 1,604 199,743 1,573 '
Excess (deficiency)of
revenues over(under)expenditures 252,782 (657,349) 51,793 181,577 33,773 ,
Other financing sources(uses):
Transfers out - (675) (271) (433) (111)
Net change in fund balance 252,782 (658,024) 51,522 181,144 33,662
Fund balance (deficit)-January 1 268,621 1,255,452 341,753 496,837 132,712
Fund balance (deficit)- December 31 $521,403 $597,428 $393,275 $677,981 $166,374
i
142
Exhibit G-6
i Totals
Nonmajor
McGlynn Satellite Business Commercial 57th Avenue Housing Capital Project Funds
Bakeries Lane Apts. Center Railway Redevelopment Replace.#1 2004 2003
$39,279 $34,382 $51,491 $ - $16,715 $19,899 $1,553,125 $1,374,943
1,211 2,563 5,433 - 38 1,892 35,288 38,383
- 5,438 - - - 2,830 43,053 39,630
- - - - 442 506
40,490 42,383 56,924 0 16,753 24,621 1,631,908 1,453,462
2,255 1,669 1,692 - 1,573 6,154 19,919 38,520
18,967 - - - 14,150 - 231,285 229,783
- - - - - - 1,383,417 494,732
21,222 1,669 1,692 0 15,723 6,154 1,634,621 763,035
19,268 40,714 55,232 0 1,030 18,467 (2,713) 690,427
(54) (151) (326) - (3) (115) (2,139) (53,222)
' 19,214 40,563 54,906 0 1,027 18,352 (4,852) 637,205
63,216 185,645 464,490 - (124,914) 147,095 3,230,907 2,593,702
$82,430 $226,208 $519,396 $0 ($123,887) $165,447 $3,226,055 $3,230,907
143
-This page intentionally left blank-
144
AGENCY FUNDS
145
Exhibit H-1
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
December 31, 2004
Balance Balance
January 1, December 31,
2004 Additions Deletions 2004
Six Cities Watershed
Assets:
Cash and investments $20,157 $6,184 $5,761 $20,580
Receivables:
Taxes:
Unremitted 163 57 163 57
Delinquent 111 6,200 6,231 80
Total assets $20,431 $12,441 $12,155 $20,717
Liabilities:
Due to other governments $20,431 $5,761 $5,475 $20,717
Hotel/Motel Tax
Assets:
Receivables:
Accounts $1,272 $1,590 $1,272 $1,590
Liabilities:
Due to other governments $1,272 $1,590 $1,272 $1,590
Totals
Assets:
Cash and investments $20,157 $6,184 $5,761 $20,580
Receivables:
Accounts 1,272 1,590 1,272 1,590
Taxes:
Unremitted 163 57 163 57
Delinquent 111 6,200 6,231 80
Total assets $21,703 $14,031 $13,427 $22,307
Liabilities:
Due to other governments $21,703 $7,351 $6,747 $22,307
146
III. STATISTICAL SECTION (UNAUDITED)
II
147
CITY OF FRIDLEY, MINNESOTA
GOVERNMENT-WIDE EXPENSES BY FUNCTION
2003 and 2004
(UNAUDITED)
Fiscal General Public Public Community
Year* Government Safety Works Development
2003 $3,944,682 $5,166,975 $3,749,412 $939,918
2004 3,513,065 5,468,014 3,612,318 602,335
*Government-wide expenses are not available for years prior to 2003.
148
Table 1
Interest on
Recreation and Long-Term Storm
Naturalist Debt Liquor Water Sewer Water Total
$1,105,240 $605,639 $5,010,636 $2,030,654 $3,419,100 $359,189 $26,331,445
993,570 544,478 5,005,198 2,086,513 3,256,371 334,906 25,416,768
149
CITY OF FRIDLEY, MINNESOTA
GOVERNMENT-WIDE REVENUES
2003 and 2004
(UNAUDITED)
Program Revenues
Charges Operating Capital
Fiscal For Grants and Grants and
Year* Services Contributions Contributions
2003 $13,346,352 $1,519,699 $1,012,151
2004 13,439,377 1,010,069 882,292
*Government-wide revenues are not available for years prior to 2003.
150
Table 2
General Revenues
Grants and
Contributions
Not Restricted Unrestricted
Property Tax to Specific Investment
Taxes Increments Program Earnings Other Total
$5,273,363 $ - $3,751,560 $541,244 $23,500 $25,467,869
5,816,656 - 3,436,473 559,991 680 25,145,538
I
I
151
Table 3
CITY OF FRIDLEY, MINNESOTA
GENERAL GOVERNMENT EXPENDITURES BY FUNCTION(1)
LAST TEN FISCAL YEARS I
(UNAUDITED)
Fiscal General Public Public Community Recreation/ Debt
Year Government Safety Works Development Naturalist Service Total
1995 $4,150,824 $3,821,230 $2,375,472 $530,230 $850,329 $5,636,711 $17,364,796
1996 (2) 2,331,060 3,863,105 2,306,088 535,496 759,457 1,102,010 10,897,216
1997 2,703,066 4,109,283 2,625,869 572,817 813,356 10,635,507 21,459,898
1998 2,790,588 4,098,048 2,826,545 648,842 902,159 5,141,866 16,408,048
1999 2,820,660 4,243,682 2,879,627 721,120 996,584 1,029,680 12,691,353
2000 3,113,175 4,392,025 2,661,927 775,312 1,031,174 1,058,772 13,032,385
2001 3,246,046 4,467,947 2,863,228 708,749 1,106,058 1,844,640 14,236,668
2002 3,487,505 4,905,475 3,065,570 710,780 1,139,351 1,836,471 15,145,152
2003 3,569,952 4,925,525 2,712,421 934,151 1,068,875 1,810,100 15,021,024
2004 3,155,617 5,156,529 2,608,316 593,393 960,723 5,749,013 18,223,591
(')Includes General, Special Revenue, Capital Projects and Debt Service Funds and excludes capital outlay.
(2)Prior to 1996,the HRA was included as a blended component unit of the City.
152
Table 4
CITY OF FRIDLEY, MINNESOTA
GENERAL REVENUE BY SOURCE(')
LAST TEN FISCAL YEARS
(UNAUDITED)
General
Property
Taxes & Inter-
Fiscal Special Licenses governmental Charges For Miscellaneous
Year Assessments & Permits Revenue Services Revenue Total
1995 $6,966,331 $554,182 $4,003,592 $1,015,048 $2,547,453 $15,086,606
1996 (2) 4,420,212 828,652 3,986,987 1,299,495 1,841,698 12,377,044
1997 4,3'2,005 792,622 5,410,058 1,313,705 2,176,543 14,004,933
1998 4,520,684 846,145 5,603,676 1,514,548 1,967,013 14,452,066
1999 4,475,051 937,084 5,417,384 1,291,819 1,437,381 13,558,719
2000 4,529,716 1,276,615 7,169,251 1,391,203 2,136,893 16,503,678
2001 4,579,022 776,892 4,032,903 1,471,113 1,545,769 12,405,699
2002 5,497,648 647,676 4,114,622 1,531,782 1,088,236 12,879,964
2003 5,775,937 722,541 4,075,023 1,500,429 2,602,101 14,676,031
2004 6,110,020 785,582 3,207,482 1,533,253 2,616,507 14,252,844
(')Includes General, Special Revenue, Capital Projects and Debt Service Funds.
(2)Prior to 1996, the HRA was included as a blended component unit of the City.
153
-This page intentionally left blank-
1
154
Table 5
CITY OF FRIDLEY, MINNESOTA
CERTIFIED PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
Collection Ratio of
Certified Current Percent of Prior Total Outstanding
Fiscal Tax Tax of Levy Year's Total Collections to Delinquent
Year Levy Collections(') Collected Taxes Collections Tax Levy Taxes
1995 $3,667,686 $3,606,902 98.34% $105,526 $3,712,428 1.0122 :1 $84,303
1996 3,897,629 3,849,004 98.75% 21,977 3,870,981 0.9932 :1 72,063
1997 3,891,612 3,809,416 97.89% 22,115 3,831,531 0.9846 :1 120,696
1998 4,010,570 3,935,004 98.12% 3,584 3,938,588 0.9821 :1 83,110
1999 4,034,919 4,064,819 100.74% 36,168 4,100,987 1.0164 :1 36,583
2000 4,035,671 3,928,752 97.35% 44,565 3,973,317 0.9845 :1 118,399
2001 4,205,000 4,147,788 98.64% 8,623 4,156,411 0.9884 :1 132,404
2002 5,613,131 5,579,777 99.41% 40,354 5,620,131 1.0012 :1 112,252
2003 5,825,855 5,763,097 (2) 98.92% 40,780 5,803,877 0.9962 :1 80,324
2004 6,483,745 6,310,037 (3) 97.32% 38,815 6,348,852 0.9792 :1 87,335
(1)Excludes collections from properties pledged to tax increment.
(2)Taxes were adjusted $105,234 by Anoka County due to abatements, court ordered settlements and
corrections of prior errors by the County.
(3)Current tax collections include the market value homestead credit(MVHC).
1
I 155
CITY OF FRIDLEY, MINNESOTA
ESTIMATED MARKET VALUE AND TAXABLE VALUE OF ALL PROPERTY
LAST TEN FISCAL YEARS
(UNAUDITED)
Fiscal year payable 1995 1996 1997 1998
Assessment year 1994(1) 1995') 19961) 199701
Population, fiscal year 28,204 28,267 28,419 28,335
Real property:
Estimated market value $1,090,023,902 $1,120,412,065 $1,152,674,700 $1,209,684,500
Taxable value:
Homestead $7,374,709 $7,784,740 $8,199,059 $8,307,553
Excess and nonhomestead 19,253,892 19,554,250 20,139,316 18,039,448
Less fiscal disparities contribution (4,946,278) (4,974,987) (5,147,086) (4,685,134)
Less tax increment value (2,642,692) (2,692,879) (2,760,628) (2,638,263)
Taxable value $19,039,631 $19,671,124 $20,430,661 $19,023,604
Personal property:
Estimated market value $19,952,700 $19,576,200 $19,576,200 $19,164,700
Taxable value $916,940 $916,940 $916,940 $766,322
Totals:
Estimated market value $1,109,976,602 $1,139,988,265 $1,172,250,900 $1,228,849,200
Taxable value $19,956,571 $20,588,064 $21,347,601 $19,789,926
Per market value ratios:
Taxable value .018:1 .018:1 .018:1 .015:1
Per capita valuations:
Estimated market value $39,355 $40,329 $41,249 $43,369
Taxable value $708 $728 $751 $698
Real property:
Taxable value
Fiscal disparities distribution $2,827,323 $3,007,783 $3,222,432 $3,116,450
Notes:
(')The Anoka County Auditor's Office determines taxable values on January 2 of each year pursuant to State
Statutes. The Total Taxable Value on January 2, 2003 upon which the 2004 levy was based was$18,828,036.
156
Table 6
1999 2000 2001 2002 2003 2004
1998(1) 1999w'w 2000(1) 2001(1) 2002(1)(2) 2003(1)(2)
28,623 27,449 27,854 27,877 27,460 27,480
$1,274,348,500 $1,316,382,300 $1,499,258,100 $1,669,007,700 $1,938,795,600 $2,129,450,800
$8,556,633 $9,152,661 $10,201,895 $9,026,662 $9,962,555 $11,163,343
16,302,168 16,814,763 19,002,890 12,973,031 14,662,701 15,783,274
(4,337,632) (4,312,759) (4,769,074) (3,223,214) (3,579,128) (4,292,061)
(2,381,402) (2,475,455) (3,272,618) (2,552,353) (3,810,890) (4,216,629)
$18,139,767 $19,179,210 $21,163,093 $16,224,126 $17,235,238 $18,437,927
$19,315,800 $19,160,600 $19,089,700 $19,133,400 $19,225,500 $19,604,300
$673,798 $668,384 $645,895 $360,466 $382,533 $390,109
I
$1,293,664,300 $1,335,542,900 $1,518,347,800 $1,688,141,100 $1,958,021,100 $2,149,055,100
$18,813,565 $19,847,594 $21,808,988 $16,584,592 $17,617,771 $18,828,036
.015:1 .015:1 .014:1 .010:1 .010:1 .010:1
$45,197 $48,655 $54,511 $60,557 $71,304 $78,204
$657 $723 $783 $595 $642 $685
$2,941,279 $3,355,535 $3,677,471 $2,278,406 $2,572,562 $2,703,374
I
157
-This page intentionally left blank-
158
Table 7
CITY OF FRIDLEY, MINNESOTA
SIGNIFICANT MINNESOTA TAX POLICIES
December 31, 2004
GENERAL
All non-exempt property in Minnesota is subject to taxation by local taxing districts. The tax levied on a property is
determined by computing its tax capacity, which is the property's market value multiplied by the appropriate class rate.
The taxes on a property are computed by multiplying the tax rate by the property's tax capacity. The tax rate is
determined by the County Auditor, dividing each tax levy by the taxing jurisdiction's adjusted net tax capacity.
Properties are physically reviewed by assessors at least once every four years.
The assessor's market value is multiplied by the appropriate class rates to arrive at the adjusted net tax capacity (taxable
value). The class rates vary by class of property.
Type of Property 2004
Class
Rates
Residential Homestead
First$500,000 1.00%
Over$500,000 1.25%
Commercial/Industrial
First$150,000 1.50%
Over$150,000 2.00%
Rentals
Apartments: 4+ units 1.50%
Less than 4 units 1.25%
Title II, MFHA, Sect. 8 1.00%
IProperty Tax Refund. Residential property tax credits are indexed by the percentage of net property tax to household
income to the extent a homeowner's property tax exceeds a percentage of household income. The percentage ranges
from 1.0%for incomes below$1,189 up to 4%for incomes of$77,519. The maximum refund amount is$1,450.
In 1989, the Minnesota Legislature also enacted a targeting property tax credit program. This program provides refunds
to homestead property owners for part of their tax increase in excess of 12 percent, if the increase is at least $100. The
refund is equal to 60 percent of the increase over 12 percent. The maximum refund is $1,000.
Property Tax Deferred. In 1993, the Minnesota legislature enacted a law commonly known as "This Old House" which
exempts from the property tax all or a portion of the value of improvements made to homes 35 years of age or older.
Homestead property owners could exclude the property tax on those improvements for 10 years. At the end of 10 years,
the value of the improvements is added to the market value of the home in equal installments every five years. There are
limits to the dollar amount eligible for the tax exclusion: $25,000 on homes 45 to 69 years old; and $50,000 on homes 70
years or older. Only improvements adding $5,000 or more of market value are eligible.
I
159
CITY OF FRIDLEY, MINNESOTA
TAX CAPACITY RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
(UNAUDITED)
School School School School
Fiscal District District District District
Year City No. 11 No. 13 No. 14 No. 16(1)
1995 16.098% 61.402% 77.730% 63.296% 58.566%
1996 16.565% 64.387% 60.182% 71.790% 67.583%
1997 15.242% 55.588% 84.748% 66.129% 61.268%
1998 17.119% 51.824% 68.491% 69.402% 58.662%
1999 18.326% 54.856% 68.837% 67.728% 61.111%
2000 17.070% 51.792% 66.685% 61.655% 51.440%
2001 16.350% 52.281% 47.452% 45.466% 39.458%
2002 29.906% 29.082% 38.614% 17.855% 25.985%
2003 28.616% 26.941% 20.303% 29.966% 22.054%
2004 30.248% 21.050% 22.833% 22.683% 21.421%
Notes:
(1)Vocational/Technical District#916 is included in District No. 16. 1
(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.
I
160
Table 8
I
Total School School School School
Special District District District District
County Districts No. 11(2'4) No. 13(3) No. 14(3'4) No. 16(1'3)
32.765% 6.022% 115.811% 132.593% 118.159% 113.801%
31.036% 6.122% 117.662% 113.880% 125.488% 121.656%
30.091% 6.044% 108.218% 137.656% 119.067% 114.551%
30.618% 6.603% 107.400% 124.314% 125.225% 114.679%
32.265% 6.603% 114.104% 128.158% 127.049% 120.765%
30.861% 8.224% 108.610% 123.385% 118.575% 108.621%
28.859% 8.218% 106.287% 101.819% 99.833% 94.139%
37.976% 7.528% 105.313% 115.198% 94.439% 102.639%
' 37.714% 7.666% 102.483% 96.360% 105.925% 98.111%
35.221% 7.623% 95.446% 97.758% 97.525% 96.346%
I
I
I 161
I
-This page intentionally left blank-
II
1
162
Table 9
CITY OF FRIDLEY, MINNESOTA
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
Total
Current Current Collections Delinquent Collections Outstanding
Fiscal Assessments Assessments to Amount Assessments Total to Current Delinquent
Year Due Collected Due Collected Collected Assessment Assessments
1995 $526,207 $478,762 90.98% $8,123 $486,885 92.53% $156,253
1996 483,347 461,929 95.57% 73,178 535,107 110.71% 104,909
1997 540,313 507,588 93.94% 47,068 554,656 102.65% 74,711
1998 524,560 483,721 92.21% 44,464 528,185 100.69% 70,596
1999 482,364 457,546 94.85% 36,695 494,241 102.46% 61,103
2000 489,933 473,705 96.69% 34,248 507,953 103.68% 33,050
2001 505,054 494,686 97.95% 2,522 497,208 98.45% 41,327
2002 461,603 438,607 95.02% 24,972 463,579 100.43% 39,009
I2003 418,432 398,545 95.25% 32,364 430,909 102.98% 26,530
2004 307,622 295,899 96.19% 20,120 316,019 102.73% 18,091
I
163
CITY OF FRIDLEY, MINNESOTA
HISTORY OF CERTIFIED TAX LEVIES AND TAX RATES
LAST TEN FISCAL YEARS
(UNAUDITED)
1995(1) 1996(1) 1997(1)
Certified tax levies:
General Fund $3,592,295 $3,821,853 $3,806,950
Capital Improvement Fund 72,689 72,689 72,689
Subtotal 3,664,984 3,894,542 3,879,639
Enterprise Fund - - 8,900
Agency Fund 2,702 3,087 3,073 '
Total $3,667,686 $3,897,629 $3,891,612
Tax Capacity Rate
General Fund 15.778% 16.258% 15.399%
Capital Improvement Fund 0.320% 0.307% 0.294%
Enterprise Fund 0.000% 0.000% 0.625% ,
Subtotal 16.098% 16.565% 16.318%
Agency Fund 0.022% 0.024% 0.023%
Total 16.120% 16.589% 16.341%
Notes:
()Beginning in 1994,the State law required the City to certify its tax levy after subtracting Homestead and
Agricultural Aid Credit (HACA).
(2)Levy includes the market value homestead credit(MVHC),which is paid by the State of Minnesota.
I
164
Table 10
1998(1) 1999(1) 2000(1) 2001(1) 2002(2) 2003(2) 2004(2)
' $3,921,159 $3,947,133 $3,947,882 $4,117,233 $5,507,313 $5,717,783 $6,372,785
72,689 72,689 72,689 72,667 90,719 92,972 95,800
3,993,848 4,019,822 4,020,571 4,189,900 5,598,032 5,810,755 6,468,585
8,900 8,900 8,900 8,900 8,900 8,900 8,900
7,822 6,197 6,200 6,200 6,200 6,200 6,200
$4,010,570 $4,034,919 $4,035,671 $4,205,000 $5,613,132 $5,825,855 $6,483,685
16.807% 17.995% 16.761% 16.049% 29.421% 28.152% 29.717%
0.312% 0.331% 0.309% 0.283% 0.485% 0.464% 0.531%
0.516% 0.687% 0.613% 0.534% 0.762% 0.734% 0.706%
17.635% 19.013% 17.683% 16.866% 30.668% 29.350% 30.954%
I0.067% 0.049% 0.045% 0.043% 0.059% 0.057% 0.054%
17.702% 19.062% 17.728% 16.909% 30.727% 29.407% 31.008%
I
165
-This page intentionally left blank-
I
166
Table 11
CITY OF FRIDLEY, MINNESOTA
RATIO OF NET GENERAL BONDED DEBT
TO TAXABLE VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
(UNAUDITED)
Ratio of
Net General Net
City Debt Bonded Debt General
Total Gross Service Fund Special Net General to Total Bonded
Fiscal Taxable Bonded Monies Assessment, Bonded Taxable Debt
Year Population Value Debt Available and Revenue Debt Value Per Capita
1995 28,204 $19,956,571 $19,075,000 $ - $19,075,000 $ - $ - $ -
1996 28,267 20,588,064 20,100,000 - 20,100,000 - - -
1997 28,419 21,347,601 19,880,000 - 19,880,000 - - -
1998 28,335 19,789,926 20,675,000 - 20,675,000 - - -
1999 28,623 18,813,565 20,080,000 - 20,080,000 - - -
2000 27,449 19,847,594 18,335,000 - 18,335,000 - - -
2001 27,854 21,808,988 16,880,000 - 16,880,000 - - -
2002 27,877 28,135,726 15,370,000 - 15,370,000 - - -
2003 27,460 17,617,771 13,820,000 - 13,820,000 - - -
2004 27,480 18,828,036 15,190,000 - 15,190,000 - - -
I
167
Table 12
Page 1 of 2
CITY OF FRIDLEY, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 2004
(UNAUDITED)
Market Value $2,129,450,800
(A)Debt Limit 2% of Market Value $42,589,016
Amount of Debt Applicable to Debt Limit:
Total Debt $15,190,000
(B)Deductions:
Tax Increment Redevelopment Bonds $9,595,000
Special Assessment Bonds 190,000
Revenue Bonds 5,405,000 15,190,000
Total Amount of Debt Applicable to Debt Limit -0-
Legal Debt Margin $42,589,016
Notes:
(A)M.S.A. Section 475.53 (see following page)
(B)M.S.A. Section 475.51 (see following page)
168
Table 12
Page 2 of 2
CITY OF FRIDLEY MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED)
December 31, 2004
Note (A):
M.S.A. Section 475.53 et seq. Limit on Net Debt
"Subdivision 1. Generally, except as otherwise provided in sections 475.51 to 475.75, no municipality,
except a school district or a city of the first class, shall incur or be subject to a net debt in excess of two
percent of the market value of taxable property in the municipality."
Note (B):
M.S.A. Section 475.51 Definitions
"Subdivision 4. "Net Debt" means the amount remaining after deducting from its gross debt the amount of
current revenues which are applicable within the current fiscal year to the payment of any debt, and the
aggregate of the principal of the following:
(1) Obligations issued for improvements which are payable wholly or partly from the proceeds of
special assessments levied upon property specially benefited thereby, including those which are
general obligations of the municipality issuing them, the municipality is entitled to reimbursement
in whole or in part from the proceeds of the special assessments.
(2) Warrants or orders having no definite or fixed maturity.
(3) Obligations payable wholly from the income from revenue producing conveniences.
(4) Obligations issued to create or maintain a permanent improvement revolving fund.
(5) Obligations issued for the acquisition and betterment of public waterworks systems, public
lighting, heating or power systems, and any combination thereof, or for any other public
convenience from which a revenue is or may be derived.
(6) Debt service loans and capital loans made to a school district under the provisions of sections
124.42 and 124.431.
(7) Amount of all money and the face value of all securities held as a debt service fund for the
extinguishment of obligations other than those deductible under this subdivision.
(8) Obligations to repay loans made under section 216C.37.
(9) Obligations to repay loans made from money received from litigation or settlement of alleged
violations of federal petroleum pricing regulations.
(10) All other obligations which under the provisions of law authorizing their issuance are not to be
included in computing the net debt of the municipality.
169
Table 13
CITY OF FRIDLEY, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING ■
BONDED DEBT AND COMPARATIVE DEBT RATIOS
December 31, 2004
(UNAUDITED)
Net
Percent of Net General
Debt Debt General Bonded
Gross Service Net Applicable Bonded Debt
Governmental Unit Debt Funds Debt to City Debt Per Capita
Direct&overlapping debt:
Direct debt:
City of Fridley $15,190,000 $6,486,756 $8,703,244 100.00% $8,703,244 $317
Overlapping debt:
School Districts:
No. 11 214,496,003 6,812,137 207,683,866 1.60% 3,322,942 121
No. 14 33,080,000 16,566,656 16,513,344 100.00% 16,513,344 601
No. 16 46,695,000 2,109,585 44,585,415 36.80% 16,407,433 598
Metro Council 962,747,216 108,642,000 854,105,216 1.19% 10,163,852 370
Anoka County 82,370,000 7,812,102 74,557,898 18.04% 13,450,245 490
Vocational/Technical
District No. 916 13,855,000 410,795 13,444,205 2.21% 297,117 11
Overlapping debt 1,353,243,219 142,353,275 1,210,889,944 60,154,932 2,191
Total direct and
overlapping debt $1,368,433,219 $148,840,031 $1,219,593,188 $68,858,176 $2,508
I
I
170
Table 14
CITY OF FRIDLEY, MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR GENERAL BONDED DEBT TO TOTAL GENERAL
GOVERNMENT EXPENDITURES
LAST TEN FISCAL YEARS
(UNAUDITED)
Ratio to
Total Total Debt Service
Fiscal Debt General to General
Year Principal Interest Service Expenditures(') Expenditure
1995 (2) $4,530,000 $1,106,711 $5,636,711 $17,168,847 32%
1996 (2) 175,000 927,010 1,102,010 10,711,299 10%
1997 9,675,000 960,507 10,635,507 21,245,408 50%
1998 4,310,000 831,866 5,141,866 16,202,568 31%
1999 295,000 734,680 1,029,680 12,456,045 8%
2000 300,000 758,772 1,058,772 12,807,271 8%
2001 1,105,000 739,640 1,844,640 13,995,006 13%
2002 1,150,000 686,471 1,836,471 14,920,084 12%
2003 1,180,000 630,100 1,810,100 15,021,024 12%
2004 5,155,000 594,013 5,749,013 18,223,591 31%
Notes:
(')Includes General, Special Revenue, Debt Service and Capital Projects and Expendable Trust Funds and
excludes capital outlay.
(2)Prior to 1996,the HRA was included as a blended component unit of the City.
I
171
Table 15
CITY OF FRIDLEY, MINNESOTA
REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
(UNAUDITED)
Net
Operating
Revenue
Direct Direct Available
Fiscal Operating Operating For Debt Debt Service Requirements
Year Revenue ) Expenses(2) Service Principal Interest Total Coverage
1995 $4,476,900 $5,283,552 ($806,652) $85,000 $142,943 $227,943 $ -
1996 5,791,287 5,648,603 142,684 115,000 173,553 288,553 0.49
1997 6,660,575 5,339,754 1,320,821 120,000 256,459 376,459 3.51
1998 6,520,948 5,469,928 1,051,020 260,000 275,498 535,498 1.96
1999 5,389,003 5,242,663 146,340 300,000 281,975 581,975 0.25
2000 5,150,374 4,965,373 185,001 1,445,000 197,277 1,642,277 0.11
2001 4,994,669 5,148,461 (153,792) 350,000 175,115 525,115 (0.29)
2002 5,016,233 5,251,371 (235,138) 360,000 158,422 518,422 (0.45)
2003 5,330,602 5,664,741 (334,139) 370,000 141,002 511,002 (0.65)
2004 5,371,662 5,430,082 (58,420) 390,000 334,960 724,960 (0.08)
Notes:
(')Total operating revenue.
(2)Total operating expenses including depreciation.
1
■
I
l
172 1
Table 16
CITY OF FRIDLEY, MINNESOTA
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
(UNAUDITED)
Annual
Per Average
Fiscal Capita Median School Unemployment
Year Population(1) Incomel3l Age Enrollment(4) Rate)
1995 28,204 $17,642 31.2 3,960 3.2%
' 1996 28,267 18,672 32.5 4,249 3.4%
1997 28,419 20,808 36.4 4,272 2.6%
1998 28,335 22,405 36.3 3,524 2.1%
1999 28,623 24,113 36.9 3,534 2.3%
2000 27,449 (2) 25,357 37.2 3,543 2.8%
2001 27,854 25,995 36.2 3,888 3.6%
2002 27,877 28,324 36.6 3,937 4.4%
2003 27,460 22,687 37.1 3,824 4.3%
2004 27,480 25,169 37.4 3,824 5.0%
' Notes:
(1)Estimated
(2)2000 Population Report- Bureau of the Census
(3)Maxfield Research
(4)Estimated -excludes Totino Grace Parochial High School, as it is not supported by property tax dollars.
(5)Minnesota Department of Economic Security-Twin Cities Labor Market
I
173
Table 17
CITY OF FRIDLEY, MINNESOTA
CONSTRUCTION AND PROPERTY VALUE
LAST TEN FISCAL YEARS
(UNAUDITED1
Commercial Construction Residential Construction
Number Number Estimated Market Value
Fiscal of of Taxable Non-
Year Units Value Units Value Property Taxable) Total
1995 116 $18,280,651 608 $7,618,320 $1,109,976,602 $185,043,100 $1,295,019,702
1996 108 20,141,727 719 9,971,879 1,139,988,265 185,043,100 1,325,031,365
1997 101 16,046,463 737 8,894,213 1,208,684,500 191,559,200 1,400,243,700
1998 111 9,605,305 2,977 11,766,221 1,254,840,000 209,634,200 1,464,474,200
1999 90 27,149,247 1,632 15,487,489 1,293,664,300 208,033,400 1,501,697,700
2000 96 93,625,644 836 8,020,233 1,335,542,900 208,409,300 1,543,952,200
2001 70 11,362,547 667 10,445,492 1,470,697,000 205,912,700 1,676,609,700
2002 52 4,905,398 730 6,713,930 1,604,863,900 212,252,400 1,817,116,300
2003 65 7,852,931 642 8,225,267 1,809,222,900 211,029,800 2,020,252,700
2004 99 15,466,115 624 6,563,354 2,008,163,200 308,042,173 2,316,205,373
Note:
(')Non-taxable property is reevaluated by the city assessors every six years
I
174
Table 18
CITY OF FRIDLEY, MINNESOTA
PRINCIPAL TAXPAYERS
December 31, 2004
(UNAUDITED)
Fiscal Year 2004
Percent
2004 of Total
Taxable Taxable
Rank Taxpayer Type of Business Valuation Valuation
1 Medtronic, Inc. Electro-medical devices $74,001,414 3.78%
2 Target Corporation Target discount store, warehouse and office 38,686,422 1.98%
3 Shamrock Investments Murphy Warehouses 25,582,600 1.31%
4 University Avenue Associates Springbrook Apartments 21,290,389 1.09%
5 Maurice Fillister(Georgetown) Georgetown apartments 19,381,400 0.99%
6 Retail Trust IV(Wal-Mart/Sam's) Wal-Mart/Sam's Club discount stores 15,542,800 0.79%
7 Riverpointe Apartments Riverpointe Apartments 14,606,500 0.75%
8 Cummins Power(Onan) Portable electric generators 13,406,900 0.68%
9 Northwest Racquet& Swim Club Health and Tennis Club 11,761,200 0.60%
10 Burlington Northern Railroad Operating property 11,241,100 0.57%
Total $245,500,725 12.54%
175
Table 19
CITY OF FRIDLEY, MINNESOTA
INSURANCE COVERAGE
December 31, 2004
(UNAUDITED)
Municipal Property, Crime & Bond:
Property $33,152,778
Mobile Property(also refered to as Inland Marine).
Scheduled Over$25,000 1,555,802
Unscheduled$25,000 & Less 526,945 ,
Crime (inside/outside&forgery). 100,000
Bonds 350,000
Municipal Liability:
Each Occurance Limit $1,000,000
Automobile Liability:
Liability $1,000,000
Personal Injury Protection Mn Statutory Coverage
Uninsured/Underinsured Motorist 1,000,000
Deductibles on the above insurance are as follows:
Each Occurrence Deductible 50,000
General Annual Aggregate Deductible 100,000
If the General Annual Aggregate Deductible is exceeded
then the following deductible applies: 1,000
Boiler& Machinery:
Equipment Breakdown Limit 31,920,350
Liquor Liability:
Outdoor Signs-Cub 10,000
Outdoor Signs -Hwy 65 15,000
Money& Securities Inside/Outside the Premises-Hwy 65 20,000/10,000
Money&Securities Inside/Outside the Premises-Cub 30,000/20,000
Employee Dishonesty 10,000
Liability& Medical Expenses 1,000,000
General Aggregate Limit 2,000,000
Medical Payments Limit 10,000
Hired & Non-owned Auto Liability 1,000,000
Liquor Liability- Each occurance 1,000,000
Liquor Liability-Aggregate 2,000,000
Accident Plan for Volunteers:
Coverage A-Acciental Death/Permanent Impairment 100,000
Coverage B- Permanent Impairement Benefit 100,000
Coverage C-Weekly Disability (max of 26 weeks) 400
Coverage D - Medical Benefit 1,000
Total Limit of Liability per Accident 500,000
Worker's compensation:
Bodily Injury-Each Occurrence 1,000,000
Bodily Injury by Disease-Agreement Limit 1,000,000
176
Table 20
CITY OF FRIDLEY, MINNESOTA
MISCELLANEOUS STATISTICAL INFORMATION
December 31, 2004
(UNAUDITED)
Date of Incorporation (Village of Fridley) July 1, 1949
Date of Adoption of City Charter September 10, 1957
effective
September 25, 1957
Form of Government Council/Manager
Fiscal year begins January 1
Area of City 11 square miles
Bond rating (Moody's Investors Service, Incorporated) Aa-1
Elections:
Last election -General Federal, State & Local November 2, 2004
Registered voters 18,168
Number of votes cast 14,576
Percent(%)of registered voters voting 80.2%
Population:
1950- Federal Census 3,796
1960 - Federal Census 15,182
1970 - Federal Census 29,233
1980 - Federal Census 30,228
1990 - Federal Census 28,335
1995- Estimated 28,204
1996 - Estimated 28,267
1997 -Estimated 28,419
1998 - Estimated 28,335
1999 - Estimated 28,623
2000- Federal Census 27,449
2001 - Estimated 27,854
2002 - Estimated 27,877
2003- Estimated 27,460
2004- Estimated 27,480
Permanent Employees--As of December 31
1994 140
1995 136
1996 136
1997 136
1998 140
1999 142
2000 138
2001 138
2002 139
2003 129
2004 135
177
Table 20
Continued
CITY OF FRIDLEY, MINNESOTA
MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED)
December 31, 2004
(UNAUDITED)
Fire protection:
Number of stations 3
Volunteer firefighters 27
Full-time firefighters 6
Fire rating Class 3
Police protection:
Number of stations 1
Number of sworn officers 38
Number of street lights 1,054
Number of traffic signal installations 35
Number of other special signal installations 2
Number of civil defense warning sirens 8
Miles of streets and sidewalks(including State and County):
City streets 127.20
Trunk highways 10.79
County roads 14.56
Sidewalks and bikeways 14.48
Miles of sewer:
Storm 49.34
Sanitary 102.96
Miles of watermains 112.93
Municipal water system source City of Fridley Water Plant
(13 wells)--capacity of 15.7
million gallons per day
Number of water connections December 31 8,288
Daily average consumption (gallons) 5.2 million gallons
Elevated stored capacity 3.5 million gallons
Water storage reservoirs 3.0 million gallons
Stand pipe 1.5 million gallons
Number of fire hydrants 998
Municipal sewer system:
Disposal --through Metropolitan Council Environmental Service
Number of sewer connections December 31 8,297
Average daily flow (includes infiltration/inflow) 4.72 million gallons
178
Table 20
Continued
CITY OF FRIDLEY, MINNESOTA
MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED)
December 31, 2004
(UNAUDITED)
Parks and recreation areas:
Developed 420 Acres
Undeveloped 262 Acres
Total 682 Acres
City and
County Parks Schools Total
Number of:
Hockey rinks 5 2 7
General skating rinks 10 2 12
Playgrounds 29 4 33
Swimming beaches 1 0 1
Swimming pools 0 1 1
Picnic grounds 19 0 19
Day camp sites 1 0 1
Baseball diamonds 4 5 9
Softball diamonds 21 3 24
Outdoor basketball courts 19 4 23
Tennis courts 22 19 41
Horseshoe courts 16 0 16
Archery ranges 1 0 1
Permanent playground buildings 3 0 3
Permanent picnic shelters 15 0 15
Soccer/football fields 8 3 11
179
Table 21
CITY OF FRIDLEY, MINNESOTA
GENERAL INFORMATION
December 31, 2004
(UNAUDITED)
Location -Transportation
The City of Fridley,with a total land area of eleven square miles and an estimated population of 27,480, is located at the
northern boundaries of Minneapolis and Columbia Heights, about eight miles from the Minneapolis central business
district. Freight service is provided in the area by local and interstate truck lines and Burlington Northern Railroad.
Commuter transportation is available through Metropolitan Transit Commission facilities. Highways serving Fridley
include Interstate #694 (beltline around the metropolitan area) and State Highways. An International Airport, located
approximately twenty-five miles south of Fridley, and private business aviation facilities located at the Anoka County and
Crystal Airports, provide air transportation and are operated by the Metropolitan Airport Commission.
Medical Facilities
Medical facilities in Fridley include Health One Unity Hospital, a 275-bed hospital with an adjacent clinic (Unity
Professional Building), Fridley Plaza Clinic, Fridley Medical Center, and Lynwood Health Care Center.
Education
Fridley is served by four school districts, a major portion of the City is located within Fridley Independent School District
No. 14. The Fridley School District operates two elementary schools, a junior high and senior high school, employing
159 certified personnel in the education of about 2,645 students. Totino Grace Parochial High School has an enrollment
of approximately 1150. Portions of the Columbia Heights School District (13), the Spring Lake Park School District (16)
and Anoka/Hennepin School District(11) also lie within the City of Fridley. Those districts have an estimated enrollment
of 1179 students living within the City of Fridley.
Colleges and universities, vocational-technical and specialized training schools are located throughout the metropolitan
area within easy commuting distances of Fridley.
Major Employers
Major employers in the City of Fridley include:
Employer Product or Service Employees
Medtronic, Inc. Electro-medical devices and headquarters 2,500
United Defense Systems Pumps and naval ordinance 1,800
Cummins Power(Onan) Portable generators, electronic equipment 1,727
Unity Hospital Medical and surgical services 1,400
Target Discount department store 600
Minco Products Electronic devices 500
Tiro Industries Manufacture personal care products 400
Kurt Manufacturing Manufacture precision parts 350
Park Construction Highway, street and bridge construction 300
Parsons Electric Electric contractor 300
180