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CITY OF FRIDLEY, MINNESOTA
Comprehensive Annual Financial Report
December 31, 2003
Prepared by:
Finance Department
Richard D. Pribyl
Finance Director
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CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2003
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 2003 14
It. 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 82
Budgetary Comparison Schedule-Grant Management Fund B-2 86
Budgetary Comparison Schedule- Note to RSI 87
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet- Nonmajor Governmental Funds C-1 94
Combining Statement of Revenues, Expenditures and Changes in Fund Balances-
Nonmajor Governmental Funds C-2 95
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CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2003
TABLE OF CONTENTS
EXHIBIT PAGE
Subcombining Balance Sheet- Nonmajor Special Revenue Funds C-3 98
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances-Nonmajor Special Revenue Funds C-4 100
Special Revenue Funds:
Cable TV Fund:
Comparative Balance Sheet D-1 102
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual D-2 103
Solid Waste Abatement Fund:
Comparative Balance Sheet D-3 104
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual D-4 105
HRA Reimbursement Fund:
Comparative Balance Sheet D-5 106
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual D-6 107
Drug and Gambling Forfeiture Fund:
Comparative Balance Sheet D-7 108
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual D-8 109
Housing Revitalization Fund:
Comparative Balance Sheet D-9 110
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual D-10 111
F. C. C. Donations Fund:
Comparative Balance Sheet 0-11 112
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual D-12 113
Police Activity Fund:
Comparative Balance Sheet D-13 114
Schedule of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual D-14 115
Internal Service Funds:
Combining Statement of Net Assets E-1 118
Combining Statement of Revenues, Expenses and
Changes in Net Assets E-2 119
Combining Statement of Cash Flows E-3 120
Employee Benefits Fund:
Comparative Statement of Net Assets E-4 121
Comparative Statement of Revenues, Expenses and
Changes in Net Assets E-5 122
Comparative Statement of Cash Flows E-6 123
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CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31,2003
TABLE OF CONTENTS
EXHIBIT PAGE
Self Insurance Fund:
Comparative Statement of Net Assets E-7 124
Comparative Statement of Revenues, Expenses and
Changes in Net Assets E-8 125
Comparative Statement of Cash Flows E-9 126
Information Systems Fund:
Comparative Statement of Net Assets E-10 127
Comparative Statement of Revenues, Expenses and
Changes in Net Assets E-11 128
Comparative Statement of Cash Flows E-12 129
Housing and Redevelopment Authority(Component Unit):
Balance Sheet-Governmental Funds F-1 132
Statement of Revenues, Expenditures and Changes in
Fund Balances-Governmental Funds F-2 134
Combining Balance Sheet- Nonmajor Governmental Funds F-3 136
Combining Statement of Revenues, Expenditures and Changes in Fund Balances-
Nonmajor Governmental Funds F-4 137
Subcombining Balance Sheet- Nonmajor Capital Project Funds F-5 138
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances- Nonmajor Capital Project Funds F-6 140
Capital Assets Used in the Operation of Governmental Funds:
Schedule By Source G-1 144
Schedule By Function and Activity G-2 147
Schedule of Changes By Function and Activity G-3 148
III. STATISTICAL SECTION (Unaudited)
Government-Wide Information:
Government-Wide Expenses By Function 1 152
Government-Wide Revenues 2 154
General Government Expenditures by Function - Last Ten Fiscal Years 3 156
General Revenues by Source - Last Ten Fiscal Years 4 157
Certified Property Tax Levies and Collections-Last Ten Fiscal Years 5 159
Estimated Market Value and Taxable Value of All Property-
Last Ten Fiscal Years 6 160
Significant Minnesota Tax Policies 7 163
Tax Capacity Rates- Direct and Overlapping Governments- Last Ten Fiscal Years 8 164
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31,2003
TABLE OF CONTENTS
EXHIBIT PAGE
Special Assessment Levies and Collections-Last Ten Fiscal Years 9 167
History of Certified Tax Levies and Tax Rates-Last Ten Fiscal Years 10 168
Ratio of Net General Bonded Debt to Taxable Value and Net Bonded Debt Per
Capita- Last Ten Fiscal Years 11 171
Computation of Legal Debt Margin 12 172
Computation of Direct and Overlapping Bonded Debt and Comparative
Debt Ratios 13 174
Ratio of Annual Debt Service Expenditures for General Bonded Debt to
Total General Government Expenditures - Last Ten Fiscal Years 14 175
Revenue Bond Coverage-Last Ten Fiscal Years 15 176
Demographic Statistics-Last Ten Fiscal Years 16 177
Construction and Property Value- Last Ten Fiscal Years 17 178
Principal Taxpayers 18 179
Insurance Coverage 19 180
Miscellaneous Statistical Information 20 181
General Information 21 184
I. INTRODUCTORY SECTION
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CITYOF
FRIDLEY
FRIDLEY MUNICIPAL CENTER•6431 UNIVERSITY AVE.N.E.FRIDLEY,MN 55432•(763)571-3450•FAX(763)571-1287
May 28, 2004
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, 2003, 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; 6)
combining and individual fund statements and schedules; and, 7) the supplemental financial
information. The Statistical Section includes tables and reports of various economic, social,
financial and fiscal data designed to reflect trends and ratios.
Generally accepted accounting principals require that management provide a narrative
introduction, overview, and analysis to accompany the basic financial statements in the form of
Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to
complement the MD&A and should be read in conjunction with it. The City of Fridley's
MD&A can be found immediately following the report of the independent auditors.
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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 has implemented these changes for 2003. A summary of the most significant
changes 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 2003 population of
27,460. 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 mirrored that of the national economy over the past year, and as a
result, both the number of manufacturing jobs and service jobs has declined. The
unemployment rate for the City however, is still below that of the national average.
The value of new construction for 2003 doubled from 2002 levels, and the number of projects
having a value of$500,000 or greater increased significantly from 2002.
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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 10% in estimated market value for all properties in Fridley, and a 12% increase in
estimated market value for homesteaded residential property.
MAJOR INITIATIVES
For the Year
The City has many accomplishments to report for 2003. The following list is a summary
of the major initiatives completed throughout the year.
1. The City reconstructed streets in the southeast section 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 the project
was approximately $800,000.
2. An addition to the Municipal Garage was completed. In completing this
project, the office area, lunchroom,restrooms, and mechanical work area
were all improved.
3. Wells#1 and#11 were repaired as part of the City's preventive
maintenance program. This program helps to ensure a constant water
supply for the City.
4. The City began installing AMR(automated meter reading) devices on
some of its more difficult to read commercial meters.
5. A storm water treatment pond was created on the southeast quadrant of
University Avenue and 85th Street. This was built to help Springbrook
Nature Center better handle large rainfalls.
6. The City maintained an Aal credit rating from Moody's.
7. The City implemented Governmental Accounting Standards Board
(GASB) Statement 34.
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
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CITY OF FRIDLEY,MINNESOTA
ECONOMIC CONDITION AND OUTLOOK(CONTINUED)
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 5
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. 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 2004 in the five year capital improvement plan include: new
mobile modular storage units for the Police Department evidence room; a major street
reconstruction project in Ward 2; replacement of the Marion Hills water tower; 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
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CITY OF FRIDLEY, MINNESOTA
FINANCIAL INFORMATION (CONTINUED)
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
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.
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CITY OF FRIDLEY, MINNESOTA
OTHER INFORMATION (CONTINUED)
For additional background information on the pension plans covering City employees, see
Notes to the Financial Statements.
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, 2002. 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,
(747
Richard D. Pribyl Alan D. olie
Finance Director Assistant Finance Director
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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, 2002
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 fmancial reporting.
E ON, .re,dd12'k/
, NflEOSTA-y
co nanou President
-%s e
ono
*Ser
Executive Director
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CITY OF FRIDLEY, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
DECEMBER 31, 2003
ELECTED OFFICIALS
Term of Office
Expires December
Mayor Scott J. Lund 2004
Councilmember At Large Robert R. Barnette 2004
Councilmember, Ward I Steven E. Billings 2006
Councilmember,Ward II Richard P. Wolfe 2006
Councilmember, Ward Ill 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. Pribyl
Director of Public Safety and Civil Defense David H. Sallman
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
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CITY ADMINISTRATIVE ORGANIZATIONAL STRUCTURE 2003
Total Authorized Postions (146)
CITY MANAGEMENT (4)
City Manager
Secretary to the City Manager
Management Assistant
Cable Administrator
■
FINANCE(24) POLICE (50) HUMAN RESOURCES(2)
Finance Director-Treasurer Public Safety Director- Human Resources Director
Secretary Secretary HR Assistant
(2)Accountants
OPERATIONS(30)
Captain
ACCOUNTING (7) (6)Sergeants
Assistant Finance Director (23) Patrol Officers
Payroll Technician (1 Patrol Officer is funded out of Grant Mgmt.)
Accounting Specialist
Utility Billing Clerk TECHNICAL SUPPORT(14)
(3)Acctg-Data Processing Clerks Captain
(1)Sergeants
ASSESSING (2) (6) Patrol Officers
City Assessor Projects Coordinator
Appraiser Crime Prevention Specialist
Outreach Coordinator
MIS (2) Office Supervisor
MIS Coordinator (5) Police Technicians
MIS Specialist (1 FT,4 PT benefitted)
CSO Coordinator
CITY CLERK-RECORDS (3)
City Clerk FIRE (9)
Receptionist-License Clerk
Records Assistant Fire Chief
Secretary
LIQUOR(6) Ass't Chief for Operations
Liquor Operations Manager Fire Marshal
(5) Liquor Store Clerks Captain
(3) Full-time Firefighter
Rental Inspection Asst.
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PUBLIC WORKS (38) RECREATION & COMMUNITY
NATURALIST(9) DEVELOPMENT(10)
Director of Public Works
Secretary Director of Recreation& Director of Community
Operations Analyst Natural Resources Development
Recreation Office Coordinator (2)Secretary
ENGINEERING (3) (3) Program Supervisors
Assistant Public Works Director Teen Coordinator
Engineering Technician BUILDING INSPECTION (3)
Engineering Tech Inspector Chief Building Official
NATURALIST(3) Building Inspector
PW MAINTENANCE (31) Natural Res. Coordinator Secretary
Superintendant Interpretive Specialist
Secretary Secretary PLANNING (4)
Lead Mechanic Planning Coordinator
(2) Mechanic, Level B (2) Planners
Street Supervisor Environmental Planner
(8) Public Services Worker
Water Supervisor
(5)Public Services Worker
Sewer Supervisor
(4) Public Services Worker
Parks Supervisor
(6) Public Services Worker
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II. FINANCIAL SECTION
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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 units, each major fund,
and the aggregate remaining fund information of the City of Fridley,Minnesota, as of and for the
year ended December 31, 2003 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 units, each major fund, and the aggregate remaining fund
information of the City of Fridley, Minnesota, as of December 31, 2003, 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.
As described in Note 19 to the basic financial statements,the City of Fridley, Minnesota adopted
the provisions of Governmental Accounting Standards Board Statement No. 34,Basic Financial
Statements—and Management's Discussion and Analysis—for State and Local Governments,
Statement 37,Basic Financial Statements—and Management's Discussion and Analysis—for
State and Local Governments: Omnibus, and Statement 38, Certain Financial Statement Note
Disclosures, as of January 1, 2003. This results in a change in the format and content of the
basic financial statements.
White Bear Lake Office:4810 White Bear Parkway,White Bear Lake, Minnesota 55110, USA Telephone: 651 426 7000 Fax: 651 426 5004
Hastings Office:1303 South Frontage Road, Suite 13, Hastings, MN 55033, USA Telephone:651 480 4990 Fax:651 426 5004
HLB Tautges Redpath,Ltd.is a member of HE it International. A world-wide organization of accounting firms and business advisers.
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' C
20
I
In accordance with Government Auditing Standards,we have also issued a report dated
May 21, 2004 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 grants. That report is an integral part of an audit performed in accordance with
Government Auditing Standards and should be read in conjunction with this report in
considering the results of our audit.
The Management's Discussion and Analysis and the budgetary information on pages 23 through
32 and 82 through 87, respectively, are not a required part of the basic financial statements but
are supplementary information required by the Governmental Accounting Standards Board. 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, supplementary
financial information and statistical information 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 and supplementary information has
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 information 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.
May 21, 2004
I/ 6 re244.
HLB TAUTGES REDPATH, LTD.
Certified Public Accountants
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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, 2003. 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 $58,320,453 (Net assets). Of this amount, $21,601,614 (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 $863,576.
As of the close of the current fiscal year, the City of Fridley's governmental funds reported
combined ending fund balances of $19,808,535. Of this total amount, $14,591,591, or 74%
is designated or reserved through legal restrictions and City Council authorization.
At the end of the current fiscal year the general fund balance of $4,427,875, included
$89,412 reserved and$4,338,463 designated.
The City's total debt decreased by $1,549,389 during the current fiscal year, from
$16,194,544 to $14,645,155.
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the City of Fridley's
basic financial statements. The City's basic financial statements comprise three components:
1) government-wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains other supplementary information in addition
to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Fridley's finances, in a
manner similar to a private-sector business.
The statement of net assets presents information on all of the City of Fridley's assets and
liabilities, with the difference between the two reported as net assets. Over time, increases or
decreases in net assets may serve as a useful indicator of whether the financial position of the
City of Fridley is improving or deteriorating.
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 pages 35 through 37 of this
report.
Fund Financial statements. A fund is a grouping of related accounts that is used to
maintain control over resources that have been segregated for specific activities or objectives.
The City of Fridley, like other state and local governments, uses fund accounting to ensure
and demonstrate compliance with finance-related legal requirements. All of the funds of the
City of Fridley can be divided into three categories: governmental funds, proprietary funds,
and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spend-able resource, as well as on
balances of spend-able 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 non-major governmental funds is provided in the form
of combining statements elsewhere in this report.
The City of Fridley adopts an annual appropriated budget for its general and special revenue
funds.
A budgetary comparison statement has been provided for those funds to demonstrate
compliance with this budget.
The basic governmental fund financial statements can be found on pages 38 through 43 of
this report.
Proprietary funds. The City of Fridley maintains four enterprise funds and three internal
service funds as a part of its proprietary fund type. Enterprise funds are used to report the
same functions presented as business-type activities in the government-wide financial
statements. The City of Fridley uses enterprise funds to account for its liquor, water, sewer,
and storm water operations. The City of Fridley uses internal service funds to account for
it's employee benefits, self insurance, and information systems. Because these services
predominately benefit governmental rather than business-type functions, they have been
included within governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the water, sewer, storm water, and liquor operations, all of which are
considered to be major funds of the City of Fridley. Conversely, the internal service funds
are combined into a single, aggregated presentation in the proprietary fund financial
statements. Individual fund data for the internal service funds is provided in the form of
combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 44 through 49 of this
report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government-wide
financial statements because the resources of those funds are not available to support the City
of Fridley's own program. The accounting used for fiduciary funds is much like that used for
proprietary funds.
The basic fiduciary fund financial statement can be found on page 50 of this report.
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 on pages 51 through 80 of this
report.
Other information. The combining statements referred to earlier in connection with the
non-major governmental funds are presented immediately following the required
supplementary information on budgetary comparisons. Combining and individual fund
statements and schedules can be found on pages 89 through 149 of this report.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indictor of a government's
financial position. In the case of the City of Fridley, assets exceeded liabilities by
$58,320,453 at the close of the most recent fiscal year.
The largest portion of the City of Fridley's net assets ($35,934,410 or 61.6 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.
With the first year implementation of Governmental Accounting Standards Board Statement
34, the City is not presenting comparable columns in the various comparison's and analyses
for the previous year. Comparative information will be provided in future years.
CITY OF FRIDLEY'S NET ASSETS
Governmental Business-Type
Activities Activities Total
Current and other assets $25,710,358 $10,313,917 $36,024,275
Capital assets 19,245,543 19,791,438 39,036,981
Total assets $44,955,901 $30,105,355 $75,061,256
Long-term liabilities outstanding $9,984,013 $2,397,571 $12,381,584
Other liabilities 3,319,109 1,040,110 4,359,219
Total liabilities $13,303,122 $3,437,681 $16,740,803
Net assets:
Invested in capital assets,net of related debt $18,930,543 $17,003,867 $35,934,410
Restricted 784,429 - 784,429
Unrestricted 11,937,807 9,663,807 21,601,614
Total net assets $31,652,779 $26,667,674 $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 ($21,601,614) 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
i 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 decreased the City of Fridley's net assets by $374,798, accounting
for 43% of the total decline in net assets. Key elements of this decrease are as follows:
City of Fridley's Changes in Net Assets
Governmental Business-Type
Activities Activities Total
Revenues:
Program revenues:
Charges for services $2,625,479 $10,720,873 $13,346,352
Operating grants and contributions 1,481,723 37,976 1,519,699
Capital grants and contributions 1,012,151 - 1,012,151
General revenues:
r Property taxes 5,273,363 - 5,273,363
Grants and contributions not
restricted to specific programs 3,751,560 - 3,751,560
Unrestricted investment earnings 423,215 118,029 541,244
Gain on sale of property 10,468 6,530 16,998
Other - 6,502 6,502
Total revenues 14,577,959 10,889,910 25,467,869
Expenses:
General government 3,944,682 - 3,944,682
Public safety 5,166,975 - 5,166,975
Public works 3,749,412 - 3,749,412
Community development 939,918 - 939,918
Recreation and naturalist 1,105,240 - 1,105,240
Interest on long-term debt 605,639 - 605,639
Liquor - 5,010,636 5,010,636
Water - 2,030,654 2,030,654
Sewer - 3,419,100 3,419,100
Storm water - 359,189 359,189
Total expenses 15,511,866 10,819,579 26,331,445
Increase(decrease)in net assets before transfers (933,907) 70,331 (863,576)
Transfers 559,109 (559,109) -
Increase in net assets (374,798) (488,778) (863,576)
Net assets-January 1,2003 32,027,577 27,156,452 59,184,029
A Net assets-December 31,2003 $31,652,779 $26,667,674 $58,320,453
27
1
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 for services
Grants and contributions not ,,,,,, ,q_ x,,• • .yf.//�; ,. 18%
restricicd to spccifc programs 6<' /;;f `.j:'
..:::.10.'.3.1i::� :i!'. � � ���.... Operating grants
i / � f `' pis' and contributions
;.XU.
'.:0%.114.,4/././fnife./.44:11/14;/(NOVA,,,40,KIL.,..i/PA: .sii,;„;.,;:mat•Wiltr§liii:i.. :::::o%.ripmr,:-....,::.:-...r x....
0%
� H
`n.
n%
Gain on sale
of properly Capitt
al grants
and contributions
36% __..
Property taxes
Governmental Activities-Expenses
Interest on
Recreation long-term debt
Community d naturalist 4% General government
Dev elopement 7% y�, 4::ii: 25
6% �} 1. : `>:,
,,, ,,.;,/V/.;:".,11410...47.10'.g:411:'•40:1—MNOIrlItil:Wigit40,10,1:041k•WW.A.P.,::::„:,
,,i://",'twf.',....)..1/•'•...04.: ::::' "zsz,...4.:4.•'sr., ::::v1Iiir :....:1:11111:...4,../u§:: .:::::::::•,:::::::::::::•.4:::,.-, ...:,,.......1
i'
Public
works
34%
Public safety
■
28
' Management's Discussion and Analysis
Business-Type Activities
Business-type activities decreased net assets by $488,778 accounting for 57% of the City of
Fri decline in net assets. Below are graphs showing the business-type activities
revenue and expense comparisons:
��Gain onsalc
Business-Type Activities-Revenues Unres ctea °rpmp"
investment earnings
t% I o%aner
Operating grants
and contributions
........,.. .,*,10,-#VA" '3.',..0*A' l;
,,;%r/*e)t% e4;;',.',;(e %1./g /;ei,)(' ' 4i *t,q:e.4 e Ze ?'7.; !40f,'2,.,0 5%'e '
1,..,,5
,, 5; '*';;;Iif/Pie, : ":.; ,,e, Or%"1,0fie"tar/Al", 'Ali-0Z ;. 41":1P/,'''
Ave.‘`;w -.... Y %4,,,- ;:fri.rxriAi'e:7;' `;‘ ,;04 ';'.,i;-04,egipe AT'24 e ee'
P
99%
Charges for services
Business-Type Activities-Expenses
i
storm water
3%
Water
; e r,,' f< fj Li
v `q*, eew ee' 4'e'**.e,74,4y,;.-:<4.*A ev,e,, •":e'''''' /
•
32%
F 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 $19,808,535. Approximately 93 percent of this total
amount ($18,509,711) constitutes unreserved fund balance. The remainder of the fund
balance ($1,298,824) is reserved because it has already been committed 1) to provide for
inventory ($43,502), 2)to pay debt service ($609,992), 3) for loan receivable ($645,330).
The general fund decreased by $687,835 in 2003. This was somewhat less than the decrease
budgeted for.
The special assessment debt service fund decreased by $169,274 due to transfers to other
funds.
The non-major special revenue funds decreased by $548,575 in 2003. This was mainly due
to transfers to other funds.
The non-major capital projects fund increased by $1,437, 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 $1,110,244, water
$3,180,622, sewer $3,901,111 and storm water $1,471,830. The liquor, water, sewer and
storm water funds had decreases in net assets of$89,095, $160,994, $177,414 and $61,275,
respectively.
Budgetary Highlights
General Fund
The revenue and expenditure budgets were amended to account for donations, miscellaneous
grants, reimbursements for airport security provided by the police department, and insurance
recoveries.
30
1
Management's Discussion and Analysis
Capital Asset and Debt Administration
Capital assets. The City of Fridley's, investment in capital assets for its governmental and
business type activities as of December 31, 2003, amounts to $39,036,981 (net of
accumulated depreciation). This investment in capital assets includes land, buildings,
infrastructure, improvements other than buildings, machinery and equipment, and
construction in progress.
City of Fridley's Capital Assets
(Net of Depreciation)
Internal
Beginning Service Ending
Primary Government Balance Fund Assets Increases Decreases Adjustments Balance
Governmental activities:
Capital assets,not being depreciated:
I Land $2,822,216 $ - $1,800 $ - $ - $2,824,016
Construction in progress - - 659,566 - - 659,566
' , Total capital assets,not being depreciated 2,822,216 0 661,366 0 0 3,483,582
Capital assets,being depreciated:
Buildings and structures 7,166,658 - 606,653 - - 7,773,311
Machinery and equipment 5,882,783 1,226,685 297,762 (165,259) (48,566) 7,193,405
Improvements 3,651,960 - 114,005 - - 3,765,965
Infrastructure 23,856,686 - 25,484 (153,199) - 23,728,971
Total capital assets,being depreciated 40,558,087 1,226,685 1,043,904 (318,458) (48,566) 42,461,652
t
Less accumulated depreciation for:
Buildings and structures 3,542,614 - 298,166 - - 3,840,780
Machinery and equipment 4,023,813 810,820 479,102 (165,259) (48,566) 5,099,910
Improvements 2,288,511 - 213,322 - - 2,501,833
Infrastructure 14,821,318 - 589,049 (153,199) - 15,257,168
Total accumulated depreciation 24,676,256 810,820 1,579,639 (318,458) (48,566) 26,699,691
Total capital assets being depreciated-net 15,881,831 415,865 (535,735) 0 0 15,761,961
Governmental activities capital assets-net 18,704,047 415,865 125,631 0 0 19,245,543
Business-type activities:
Capital assets,not being depreciated:
Land 306,477 - - - - 306,477
( Construction in progress - - 155,985 - - 155,985
Total capital assets,not being depreciated 306,477 0 155,985 0 0 462,462
Capital assets,being depreciated:
Buildings and structures 1,949,453 - - - - 1,949,453
Improvements other than buildings 10,947,832 - 23,408 - - 10,971,240
Machinery and equipment 2,149,450 - 153,124 (74,074) 48,561 2,277,061
Infrastructure 19,615,610 - 150,854 - - 19,766,464
Total capital assets,being depreciated 34,662,345 0 327,386 (74,074) 48,561 34,964,218
Less accumulated depreciation for:
t Buildings and structures 1,236,719 - 34,363 - 369 1,271,451
Improvements other than buildings 3,240,490 - 494,339 - (537) 3,734,292
Machinery and equipment 1,407,638 - 161,740 (69,271) 48,769 1,548,876
Infrastructure 8,661,995 - 418,668 - (40) 9,080,623
Total accumulated depreciation 14,546,842 0 1,109,110 (69,271) 48,561 15,635,242
Total capital assets being depreciated-net 20,115,503 0 (781,724) (4,803) 0 19,328,976
Business-type activities capital assets-net 20,421,980 0 (625,739) (4,803) 0 19,791,438
Total capital assets $39,126,027 $415,865 ($500,108) ($4,803) $0 $39,036,981
Additional information on the City of Fridley's capital assets can be found in Note 4.
31
Management's Discussion and Analysis
Long-term debt. At the end of the current fiscal year, the City of Fridley had total bonded
debt outstanding of$13,807,571, a decrease of$1,548,068 from 2002. $315,000 of this is for
general obligation improvement debt which is supported by special assessments, an
additional $10,705,000 is for general obligation tax increment debt which financed the City's
housing and redevelopment program, and $2,787,571 is general obligation utility revenue
bonds which financed utility improvements.
In addition, there is long-term debt in the amount of$837,584 for compensated absences.
City of Fridley's Outstanding Debt
General Obligation Improvement Bonds, General Obligation Tax Increment Bonds, General
Obligation Revenue Bonds, and Compensated Absences:
Governmental Business-Type
Activities Activities
2003 2003 Total
General Obligation Improvement Bonds $315,000 $ - $315,000
General Obligation Tax Increment Bonds 10,705,000 - 10,705,000
General Obligation Revenue Bonds - 2,787,571 2,787,571
Compensated absences 837,584 - 837,584
Total $11,857,584 $2,787,571 $14,645,155
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
$38,775,912. 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
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34
Exhibit A-1
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF NET ASSETS
December 31,2003
Component
Unit
Primary Government Housing&
Governmental Business-Type Redevelopment
Assets: Activities Activities Total Authority
Cash and investments $23,255,172 $8,035,513 $31,290,685 $15,014,720
Cash held in escrow - - - 135,106
Receivables:
Accounts 110,077 1,442,982 1,553,059 67,434
Taxes 198,706 314 199,020 205,700
Special assessments 990,938 79,751 1,070,689 -
Mortgage - - - 862,828
Interest 80,781 - 80,781 29,550
Loan from component unit 599,420 - 599,420
-
Notes 45,910 - 45,910
-
Due from component unit 64,733 - 64,733
-
Due from other governments 321,120 - 321,120 -
Due from primary government - - - 191,559
Prepaid items - 196,781 196,781 -
Inventories-at cost 43,501 558,576 602,077 -
Land held for resale - - - 955,000
Capital assets (net of accumulated depreciation):
Land 2,824,016 306,477 3,130,493 -
Buildings and structures 3,932,531 678,002 4,610,533 -
Improvements other than buildings 1,264,132 7,236,948 8,501,080 -
Machinery and equipment 2,093,495 728,185 2,821,680 -
Infrastructure 8,471,803 10,685,841 19,157,644 -
Construction in progress 659,566 _ 155,985 815,551 -
Total assets 44,955,901 30,105,355 75,061,256 17,461,897
Liabilities:
Due to primary government - - - 64,733
Accounts payable 181,090 459,003 640,093 643,235
Deposits payable 32,580 - 32,580 -
Contracts payable 59,775 14,239 74,014 -
Due to other governments 12,518 65,252 77,770 -
Due to component unit 191,559 - 191,559 -
Salaries payable 521,795 54,277 576,072 5,253
Accrued interest payable 239,696 57,339 297,035 -
Compensated absences payable:
Due within one year 568,571 - 568,571 -
Due in more than one year 269,013 - 269,013 -
Unearned revenue 206,525 - 206,525 -
Loan payable to primary government:
Due within one year - - - 58,176
Due in more than one year - - - 541,244
Bonds payable:
Due within one year 1,305,000 390,000 1,695,000 -
Due in more than one year 9,715,000 2,397,571 12,112,571 -
Total liabilities 13,303,122 3,437,681 16,740,803 1,312,641
Net assets:
Invested in capital assets, net of related debt 18,930,543 17,003,867 35,934,410 -
Restricted for:
Debt service 747,076 - 747,076 -
Tax increment purposes 37,353 - 37,353 2,447,948
Unrestricted 11,937,807 9,663,807 21,601,614 13,701,308
Total net assets $31,652,779 $26,667,674 $58,320,453 $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, 2003
Charges For
Expenses Services
Functions/Programs
Primary government:
Government activities:
General government $3,944,682 $1,301,146
Public safety 5,166,975 542,725
Public works 3,749,412 77,166
Community development 939,918 411,300
Recreation and naturalist 1,105,240 293,142
Interest on long-term debt 605,639 -
Total government activities 15,511,866 2,625,479
Business-type activities:
Liquor 5,010,636 5,364,588
Water 2,030,654 1,806,358
Sewer 3,419,100 3,183,260
Storm sewer 359,189 366,667
Total business-type activities 10,819,579 10,720,873
Total primary government $26,331,445 $13,346,352
Component Units:
Housing and Redevelopment Authority 4,242,842 -
Total Component Units $4,242,842 $0
The accompanying notes are an integral part of these financial statements.
36
Exhibit A-2
Net(Expense) Revenue and Component
Program Revenues Changes in Net Assets Unit
Operating Capital Primary Government Housing &
Grants and Grants and Governmental Business-Type Redevelopment
Contributions Contributions Activities Activities Total Authority
$52,966 $ - ($2,590,570) $ - ($2,590,570) $ -
488,386 - (4,135,864) - (4,135,864) -
537,633 1,012,151 (2,122,462) - (2,122,462) -
392,066 - (136,552) - (136,552) -
10,672 - (801,426) - (801,426) -
- - (605,639) - (605,639) -
1,481,723 1,012,151 (10,392,513) 0 (10,392,513) 0
- - - 353,952 353,952 -
- - (224,296) (224,296) -
- - (235,840) (235,840) -
37,976 - - 45,454 45,454 -
37,976 0 0 (60,730) (60,730) 0
$1,519,699 $1,012,151 ($10,392,513) ($60,730) ($10,453,243) $308,562
73,220 - - - - (4,169,622)
$73,220 $0 $0 $0 $0 ($4,169,622)
General revenues:
Property taxes $5,273,363 $ - $5,273,363 $239,382
Tax increment collections - - - 3,660,604
Grants and contributions not
restricted to specific programs 3,751,560 - 3,751,560 -
Unrestricted investment earnings 423,215 118,029 541,244 199,123
Gain on sale of property 10,468 6,530 16,998 -
Other - 6,502 6,502 500,344
Transfers 559,109 (559,109) - -
Total general revenues
and transfers 10,017,715 (428,048) 9,589,667 4,599,453
Change in net assets (374,798) (488,778) (863,576) 429,831
Net assets-beginning 32,027,577 27,156,452 59,184,029 15,719,425
Net assets-ending $31,652,779 $26,667,674 $58,320,453 $16,149,256
The accompanying notes are an integral part of these financial statements.
37
CITY OF FRIDLEY,MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31,2003
Special
Grant Assessment
General Management Debt Service
Assets
Cash and investments $4,614,211 $156,942 $6,076,862
Receivables:
Accounts 51,123 - -
Taxes 195,532 - -
Special assessments 10,100 - 937,938
Interest 80,781 - -
Loan receivable from component unit - - 599,420
Developer note 45,910 - -
Due from other funds 53,696 - -
Due from component unit 53,380 - -
Due from other governments 23,607 237,998 -
Inventories, at cost 43,501 - -
Total assets $5,171,841 $394,940 $7,614,220
Liabilities and Fund Balances
Liabilities:
Accounts payable $174,281 $1,854 $ -
Deposits payable 22,553 - -
Contracts payable - 5,009 -
Salaries payable 433,494 3,456 -
Deferred revenue 101,764 192,425 933,353
Due to other funds - - -
Due to other governments 11,874 637 -
Due to component unit - 191,559 -
Total liabilities 743,966 394,940 933,353
Fund balances:
Reserved for:
Inventory 43,502 - -
Long-term receivables 45,910 - 599,420
Debt service - - 572,639
Unreserved:
Designated reported in:
General Fund 4,338,463 - -
Special Revenue Funds - - -
Capital Project Funds - - -
Undesignated reported in:
Debt Service Funds - - 5,508,808
Capital Project Funds - - -
Total fund balances 4,427,875 0 6,680,867
Total liabilities and fund balances $5,171,841 $394,940 $7,614,220
The accompanying notes are an integral part of these financial statements.
38
Exhibit A-3
Tax Other Intra- Total
Increment Capital Governmental Activity Governmental
Debt Service Improvements Funds Eliminations Funds
$37,353 $6,547,300 $2,111,832 $ - $19,544,500
- - 58,954 - 110,077
- 3,174 - - 198,706
- 2,289 40,611 - 990,938
- - - - 80,781
- - - - 599,420
- - - - 45,910
- 247,928 - (301,624) -
- - 11,353 - 64,733
- - 59,515 - 321,120
- - - - 43,501
$37,353 $6,800,691 $2,282,265 ($301,624) $21,999,686
$ - $ - $4,131 $ - $180,266
- - 10,027 - 32,580
- 14,812 39,954 - 59,775
- - 5,763 - 442,713
- 3,587 40,611 - 1,271,740
- - 301,624 (301,624) -
- - 7 - 12,518
- - - - 191,559
0 18,399 402,117 (301,624) 2,191,151
- - - - 43,502
- - - - 645,330
37,353 - - - 609,992
- - - - 4,338,463
- - 2,172,012 - 2,172,012
- 6,782,292 - - 6,782,292
- - - - 5,508,808
- - (291,864) - (291,864)
37,353 6,782,292 1,880,148 0 19,808,535
$37,353 $6,800,691 $2,282,265 ($301,624) $21,999,686
Fund balance reported above $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 18,829,678
Other long-term assets are not available to pay for current-period expenditures and,therefore, are deferred
in the funds. 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. (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 3,209,047
Net assets of governmental activities $31,652,779
The accompanying notes are an integral part of these financial statements.
39
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31,2003
Special
Grant Assessment
General Management Debt Service
Revenues:
Taxes $5,219,547 $ - $ -
Special assessments 2,942 - 449,867
Licenses and permits 557,920 - -
Intergovernmental revenue 2,500,688 811,467 -
Charges for services 1,275,512 - -
Fines and forfeits 203,533 - -
Investment income 87,349 - 98,407
Interest on loan - - 32,056
Miscellaneous 222,660 28,393 -
Total revenues 10,070,151 839,860 580,330
Expenditures:
Current:
General government 2,331,581 671,417 88,822
Public safety 4,925,525 - -
Public works 2,675,740 - -
Community development 742,592 191,559 -
Recreation and naturalist 1,068,875 - -
Debt service - - 172,777
Capital outlay 297,762 - -
Total expenditures 12,042,075 862,976 261,599
Excess(deficiency)of revenues
over(under)expenditures (1,971,924) (23,116) 318,731 r
Other financing sources (uses):
Transfers in 1,298,595 23,116 -
Transfers out (14,506) - (488,005)
Total other financing sources(uses) 1,284,089 23,116 (488,005)
Excess (deficiency)of revenues and other financing h
sources over(under)expenditures
and other financing uses (687,835) 0 (169,274)
Fund balance-January 1 5,115,710 0 6,850,141
Fund balance-December 31 $4,427,875 $0 $6,680,867
The accompanying notes are an integral part of these financial statements.
40
Exhibit A-4
Tax Other Infra- Total
Increment Capital Governmental Activity Governmental
Debt Service Improvements Funds Eliminations Funds
$ - $85,742 $ - $ - $5,305,289
- 1,263 16,576 - 470,648
- 164,621 - 722,541
- 684,841 78,027 - 4,075,023
- - 224,917 - 1,500,429
- - 12,835 - 216,368
- 106,709 37,668 - 330,133
- - - - 32,056
1,636,291 131,366 4,834 - 2,023,544
1,636,291 1,009,921 539,478 0 14,676,031
- 3,880 474,252 - 3,569,952
- - - - 4,925,525
- - 36,681 - 2,712,421
- - - - 934,151
- - - - 1,068,875
1,637,323 - - - 1,810,100
- 722,459 685,049 - 1,705,270
1,637,323 726,339 1,195,982 0 16,726,294
(1,032) 283,582 (656,504) 0 (2,050,263)
- 130,543 735,104 (1,608,249) 579,109
- (480,000) (625,738) 1,608,249 -
0 (349,457) 109,366 0 579,109
(1,032) (65,875) (547,138) 0 (1,471,154)
38,385 6,848,167 2,427,286 - 21,279,689
$37,353 $6,782,292 $1,880,148 $0 $19,808,535
The accompanying notes are an integral part of these financial statements.
41
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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, 2003
Amounts reported for governmental activities in the
statement of activities (page 36)are different because:
Net changes in fund balances-total governmental funds (page 41) ($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. 125,631
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds. (159,096)
The issuance of long-term debt(e.g., bonds, leases)provides current financial
resources to governmental funds, while the repayment of the principal of
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. 1,180,000
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. (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. 24,461
Change in net assets of governmental activities (page 36) ($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, 2003
Business-Type Activities-Enterprise Funds
Liquor Water
Assets:
Current assets:
Cash and cash equivalents $1,027,740 $2,797,134
Accounts receivable 968 509,849
Taxes receivable:
Unremitted - -
Delinquent - -
Special assessments receivable - 5,124
Inventories, at cost 546,889 11,687
Prepaid items - -
Total current assets 1,575,597 3,323,794
Noncurrent assets:
Capital assets:
Land 151,946 154,531
Buildings and structures 130,211 1,810,472
Improvements other than buildings 650,245 6,685,076
Machinery and equipment 194,341 1,383,913
Infrastructure - 7,148,809
Construction in progress - 155,985
Total capital assets 1,126,743 17,338,786
Less: Allowance for depreciation (401,410) (7,793,516)
Net capital assets 725,333 9,545,270
Total noncurrent assets 725,333 9,545,270
Total assets 2,300,930 12,869,064
Liabilities:
Current liabilities:
Accounts payable 395,418 47,075
Contracts payable - 14,239
Salaries payable 18,323 20,163
Payroll deductions payable - -
Compensated absences payable - -
Due to other governments 51,612 13,640
Accrued interest payable - 48,055
Bonds payable-current - 270,000
Total current liabilities 465,353 413,172
Noncurrent liabilities:
Compensated absences-noncurrent - -
Bonds payable-noncurrent - 2,073,903
Total noncurrent liabilities 0 2,073,903
Total liabilities 465,353 2,487,075
Net assets:
Invested in capital assets, net of related debt 725,333 7,201,367
Unrestricted 1,110,244 3,180,622
Total net assets $1,835,577 $10,381,989
The accompanying notes are an integral part of these financial statements.
44
Exhibit A-6
Governmental
Business-Type Activities- Enterprise Funds Activities-
Storm Internal Service
Sewer Water Totals Funds
$2,888,092 $1,322,547 $8,035,513 $3,710,672
840,374 91,791 1,442,982 -
- 219 219 -
- 95 95 -
- 74,627 79,751 -
- - 558,576 -
196,781 - 196,781 -
3,925,247 1,489,279 10,313,917 3,710,672
- - 306,477 -
8,770 - 1,949,453 -
1,826,731 1,809,188 10,971,240 -
669,682 29,125 2,277,061 1,226,685
6,492,087 6,125,568 19,766,464 -
- - 155,985 -
8,997,270 7,963,881 35,426,680 1,226,685
(4,120,442) (3,319,874) (15,635,242) (810,820)
4,876,828 4,644,007 19,791,438 415,865
4,876,828 4,644,007 19,791,438 415,865
8,802,075 6,133,286 30,105,355 4,126,537
7,841 8,669 459,003 824
- - 14,239 -
15,791 - 54,277 -
- - 79,082
- - 568,571
- - 65,252 -
504 8,780 57,339 -
10,000 110,000 390,000 -
34,136 127,449 1,040,110 648,477
- - 269,013
10,000 313,668 2,397,571 -
10,000 313,668 2,397,571 269,013
44,136 441,117 3,437,681 917,490
4,856,828 4,220,339 17,003,867 415,865
3,901,111 1,471,830 9,663,807 2,793,182
$8,757,939 $5,692,169 $26,667,674 $3,209,047
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 31,2003
Business-Type Activities- Enterprise Funds
Liquor Water
Sales $5,364,588 $ -
Cost of sales (4,214,499) -
Gross profit 1,150,089 0
Operating revenues:
Customer billings - 1,789,137
Charges for services - 7,577
Insurance and other reimbursements - -
Other revenues - 9,644
Total operating revenues 0 1,806,358
Total gross profit and operating revenues 1,150,089 1,806,358
Operating expenses:
Personal services 416,038 581,939
Supplies and other charges:
Disposal charges - -
Other 312,134 763,908
Depreciation 67,965 564,051
Total operating expenses 796,137 1,909,898
Operating income (loss) 353,952 (103,540)
Nonoperating revenues (expenses):
Intergovernmental revenue -
Investment income 11,316 41,640
Interest expense - (120,756)
Special assessments - -
Gain (loss)on disposal of fixed assets (3,863) 9,616
Total nonoperating revenues (expenses) 7,453 (69,500)
Income (loss)before transfers 361,405 (173,040)
Transfers:
Transfers in - 15,346
Transfers out (450,500) (3,300)
Total transfers (450,500) 12,046
Change in net assets (89,095) (160,994)
Net assets-January 1 1,924,672 10,542,983
Net assets- December 31 $1,835,577 $10,381,989
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 Internal Service
Sewer Water Elimination Totals Funds
$ - $ - $ - $5,364,588 $ -
(4,214,499) -
0 0 0 1,150,089 0
3,183,260 358,205 - 5,330,602
-
- - 7,577 158,202
-
8,462 - 18,106 -
3,183,260 366,667 0 5,356,285 158,202
3,183,260 366,667 0 6,506,374 158,202
513,148 97,000 - 1,608,125 40,603
2,441,725 - - 2,441,725 -
167,633 58,247 - 1,301,922 61,964
295,211 181,877 - 1,109,104 171,299
3,417,717 337,124 0 6,460,876 273,866
(234,457) 29,543 0 45,498 (115,664)
- 37,976 - 37,976 -
44,695 20,378 - 118,029 61,024
(1,383) (22,065) - (144,204) -
6,502 - 6,502 -
777 - - 6,530 -
44,089 42,791 0 24,833 61,024
(190,368) 72,334 0 70,331 (54,640)
24,454 - (39,800) - -
(11,500) (133,609) 39,800 (559,109) (20,000)
12,954 (133,609) 0 (559,109) (20,000)
(177,414) (61,275) 0 (488,778) (74,640)
8,935,353 5,753,444 - 27,156,452 3,283,687
$8,757,939 $5,692,169 $0 $26,667,674 $3,209,047
The accompanying notes are an integral part of these financial statements.
47
1
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2003
Business-Type Activities-Enterprise Funds
Liquor Water
Cash flows from operating activities:
Receipts from customers and users $5,365,050 $1,766,500
Receipts from interfund services provided - -
Receipts from component units - -
Payments to component units - -
Payment to suppliers (4,279,795) (750,934)
Payment to employees (414,778) (578,950)
Miscellaneous revenue - 10,617
Net cash flows from operating activities 670,477 447,233
Cash flows from noncapital financing activities:
Intergovernmental revenue - -
Transfers out (450,500) (3,300)
Transfers in - 15,346
Special assessment collections - 4,707
Other noncapital items - -
Net cash flows from
noncapital financing activities (450,500) 16,753
Cash flows from capital and related
financing activities:
Acquisition of capital assets - (319,059)
Principal paid on revenue bonds - (253,513)
Interest and paying agent fees on revenue bonds - (125,673)
Proceeds from sale of capital assets - 10,556
Net cash flows from capital
and related financing activities 0 (687,689)
Cash flows from investing activities:
Investment income 11,316 41,640
Net increase (decrease) in cash and cash equivalents 231,293 (182,063)
Cash and cash equivalents -January 1 796,447 2,979,197
Cash and cash equivalents- December 31 $1,027,740 2,797,134
Reconciliation of operating income (loss)to net cash
provided (used) by operating activities:
Operating income(loss) $353,952 (103,540)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation 67,965 564,051
Changes in assets and liabilities:
Decrease (increase)in receivables 548 (23,389)
Decrease (increase)in prepaid items - -
Decrease (increase)in inventories 43,743 (5,852)
Increase (decrease)in payables 204,269 15,963
Total adjustments 316,525 550,773
Net cash provided by operating activities $670,477 $447,233
The accompanying notes are an integral part of these financial statements.
48
Exhibit A-8
Governmental
Business-Type Activities-Enterprise Funds Activities-
Storm Internal
Sewer Water Totals Service Fund
$3,114,509 $358,910 $10,604,969 $ -
- - - 158,942
- - - 274
(2,625,950) (52,307) (7,708,986) (159,171)
(511,353) (97,000) (1,602,081) (26,604)
8,462 19,079 -
(22,794) 218,065 1,312,981 (26,559)
37,976 37,976 -
(11,500) (133,609) (598,909) (20,000)
24,454 - 39,800 -
- 32,102 36,809 -
- 106 106 -
12,954 (63,425) (484,218) (20,000)
(94,027) (63,525) (476,611) (124,739)
(10,000) (108,108) (371,621)
(1,629) (24,186) (151,488) -
777 - 11,333 -
(104,879) (195,819) (988,387) (124,739)
44,695 20,378 118,029 61,024
(70,024) (20,801) (41,595) (110,274)
2,958,116 1,343,348 8,077,108 3,820,946
2,888,092 1,322,547 $8,035,513 $3,710,672
(234,457) 29,543 $45,498 ($115,664)
295,211 181,877 1,109,104 171,299
(68,752) 705 (90,888) 1,014
31,681 - 31,681 -
- 37,891 -
(46,477) 5,940 179,695 (83,208)
211,663 188,522 1,267,483 89,105
($22,794) $218,065 $1,312,981 ($26,559)
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, 2003
Six Cities Hotel/Motel
Watershed Tax Totals
Assets:
Cash and investments $20,157 $ - $20,157
Receivables:
Accounts - 1,272 1,272
Taxes:
Unremitted 163 - 163
Delinquent 111 - 111
Total assets 20,431 1,272 21,703
Liabilities:
Due to other governments 20,431 1,272 21,703
Net assets:
Unreserved:
Undesignated - -
Total net assets $0 $0 $0
The accompanying notes are an integral part of these financial statements.
50
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
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 are 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, 2003
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, 2003
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, 2003
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, 2003
■
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 are considered cash equivalents.
Cash and investments held by escrow agent includes balances held in segregated accounts
that are established for specific purposes.
55
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
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,
2003 are planned to be eliminated in 2004. 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, 2003
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 Auditor 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, 2003
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.
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, 2003, no interest was capitalized in connection with construction in
progress.
Property, plant and equipment of the primary government, as well as the component units, is
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
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.
58
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
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.
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.
59
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
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 a 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 ($11,259,696)
difference are as follows:
Bonds payable ($11,020,000)
Accrued interest payable (239,696)
Net adjustment to increase net changes in
fund balances-total governmental funds to
arrive at changes in net assets of
governmental activities ($11,259,696)
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 a reconciliation between net changes in fund ba lances—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$125,631 difference are
as follows:
Capital outlay $1,705,270
Depreciation expense (1,579,639)
Net adjustment to increase net changes in fund
balances-total governmental funds to arrive at
changes in net assets of governmental activities $125,631
60
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
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 ($159,096)difference are as follows:
General property taxes deferred revenue:
At December 31, 2002 ($112,045)
At December 31, 2003 80,118
Special assessments deferred revenue:
At December 31, 2002 (1,112,266)
At December 31, 2003 985,097
Net adjustments to decrease net changes in fund balances-
total governmental funds to arrive at changes in net
assets of governmental activities ($159,096)
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$1,180,000 difference are as follows:
Principal repayments:
General obligation debt $150,000
Tax increment bonds 1,030,000
Net adjustment to decrease net changes in
fund balances-total governmental funds to
arrive at changes in net assets of
governmental activities $1,180,000
2. Deposits and Investments
A. Deposits
In accordance with applicable Minnesota Statutes, the City maintains deposits at depository
banks authorized by the City Council. All such depositories are members of the Federal
Reserve System.
Minnesota Statutes require that all deposits be protected by insurance, surety bond or
collateral. If collateral is pledged as protection for the deposits, State Statutes require that it
be held by a third party in the City's name. The market value of the collateral must, at a
minimum, be 110% of the deposits not covered by insurance or bonds (140% in the case of
mortgage backed collateral). Repurchase agreements are intentionally overcollateralized at
61
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
105% to insure that the safety of investment principal is attained and losses do not occur
from rapid overnight deterioration. Due to wire transfers and tax settlements credited by the
bank at the end of the day, there were occasions during the year where overnight deposits
were undercollateralized. On each occasion, the uncollateralized balance was invested with
another financial institution on the following day.
Balances at December 31, 2003 are as follows:
Bank Carrying
Balances Amount
City $994,692 $777,609
HRA 360,574 360,574
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
The City is authorized by Minnesota Statutes to invest in the following:
(a) Direct obligations or obligations guaranteed by the United States or its agencies.
(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.
(c) General obligations of the State of Minnesota or any of its municipalities.
(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 reserve 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, or certain Minnesota securities broker dealers.
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.
62
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
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 $19,299,663 $ - $ - $19,299,663
Investments not subject to categorization:
Mutual funds 11,233,570
Total investments $30,533,233
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 $216,085 $ - $ - $216,085
U.S. government agencies
or instrumentalities 4,013,080 - - 4,013,080
$4,229,165 $0 $0 4,229,165
Investments not subject to categorization:
Money market fund 296,016
Mutual fund 10,264,071
Total investments $14,789,252
63
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
3. Receivables
Significant receivables balances not expected to be collected within one year of December 31, 2003
are as follows:
Primary Government
Major Funds
Special
Assessment Capital Nonmajor
General Debt Service Improvements Funds Total
Special assessments receivable $3,530 $804,138 $1,225 $40,041 $848,934
Loans receivable - 541,244 - - 541,244
Delinquent property taxes 40,434 - 666 - 41,100
$43,964 $1,345,382 $1,891 $40,041 $1,431,278
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) $78,820 $ - $78,820
Delinquent property taxes receivable(Capital Improvement Fund) 1,298 - 1,298
Special assessments not yet due(General Fund) 8,845 - 8,845
Special assessments not yet due(Special Assessment Debt Service) 933,352 - 933,352
Special assessments not yet due(Capital Improvements) 2,289 - 2,289
Special assessments not yet due(Nonmajor Funds) 40,611 - 40,611
Unearned grant funds(General Fund) - 192,425 192,425
Unearned grant funds(Grant Management Fund) - 14,100 14,100
Total deferred/unearned revenue for governmental funds $1,065,215 $206,525 $1,271,740
64
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
' December 31, 2003
4. Capital Assets
Capital asset activity for the year ended December 31, 2003 as previously reported was as follows:
Beginning Internal
Beginning Balance, Service Ending
Primary Government Balance Restated as Restated Fund Assets Increases Decreases Adjustments Balance
Governmental activities:
Capital assets,not being depreciated:
Land $2,842,282 ($20,066) $2,822,216 $ - $1,800 $ - $ - $2,824,016
Construction in progress - - - - 659,566 - - 659,566
Total capital assets,not being depreciated 2,842,282 (20,066) 2,822,216 0 661,366 0 0 3,483,582
Capital assets,being depreciated:
Buildings and structures 7,179,235 (12,577) 7,166,658 - 606,653 - - 7,773,311
Machinery and equipment 5,870,206 12,577 5,882,783 1,226,685 297,762 (165,259) (48,566) 7,193,405
Improvements 26,455,604 (22,803,644) 3,651,960 - 114,005 - - 3,765,965
Infrastructure - 23,856,686 23,856,686 - 25,484 (153,199) - - 23,728,971
Total capital assets,being depreciated 39,505,045 1,053,042 40,558,087 1,226,685 1,043,904 (318,458) - (48,566) 42,461,652
Less accumulated depreciation for:
Buildings and structures - 3,542,614 3,542,614 - 298,166 - - 3,840,780
Machinery and equipment - 4,023,813 4,023,813 810,820 479,102 (165,259) (48,566) 5,099,910
Improvements - 2,288,511 2,288,511 - 213,322 - - 2,501,833
Infrastructure - 14,821,318 14,821,318 - 589,049 (153,199) - 15,257,168
Total accumulated depreciation 0 24,676,256 24,676,256 810,820 1,579,639 (318,458) - (48,566) 26,699,691
Total capital assets being depreciated-net 39,505,045 (23,623,214) 15,881,831 415,865 (535,735) 0 0 15,761,961
Governmental activities capital assets-net $42,347,327 ($23,643,280) $18,704,047 $415,865 $125,631 $0 $0 $19,245,543
Beginning Ending
Primary Government Balance Increases Decreases Adjustments Balance
Business-type activities:
Capital assets,not being depreciated:
Land $306,477 $ - $ - $ - $306,477
Construction in progress - 155,985 - - 155,985
Total capital assets,not being depreciated 306,477 155,985 0 0 462,462
Capital assets,being depreciated:
Buildings and structures 1,949,453 - - - 1,949,453
Improvements other than buildings 10,947,832 23,408 - - 10,971,240
Machinery and equipment 2,149,450 153,124 (74,074) 48,561 2,277,061
Infrastructure 19,615,610 150,854 - - 19,766,464
Total capital assets,being depreciated 34,662,345 327,386 (74,074) 48,561 34,964,218
Less accumulated depreciation for:
Buildings and structures 1,236,725 34,357 - 369 1,271,451
Improvements other than buildings 3,240,490 494,339 - (537) 3,734,292
Machinery and equipment 1,407,638 161,740 (69,271) 48,769 1,548,876
( Infrastructure 8,661,995 418,668 - (40) 9,080,623
Total accumulated depreciation 14,546,848 1,109,104 (69,271) 48,561 15,635,242
Total capital assets being depreciated-net 20,115,497 (781,718) (4,803) 0 _ 19,328,976
Business-type activities capital assets-net , $20,421,974 ($625,733) ($4,803) $0 $19,791,438
65
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government $312,873
Public safety 202,198
Public works, including depreciation of general infrastructure assets 1,028,541
Community development 2,947
Recreation and naturalist 33,080
Capital assets held by the government's internal service funds are
charged to the various functions based on their usage of the assets 171,299
Total depreciation expense-governmental activities $1,750,938
Business-type activities:
Liquor $67,965
Water 564,051
Sewer 295,211
Storm water 181,877
Total depreciation expense- business-type activities $1,109,104
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, 2003, the governmental long-term bonded debt and loans of the financial
reporting entity consisted of the following (in thousands):
Governmental Activities:
$1,020,000 Special Assessment Bonds of 1991 due in varying annual installments
of$35,000-$90,000 through February 1,2005; interest at 5.60%-6.60%. $75
$855,000 General Obligation Special Assessment bonds of 1992,Series A,
due in varying annual installments of$50,000-$95,000 through February
1,2004; interest at 3.00%-5.25%. 50
$150,000 Special Assessment Bonds of 1994 due in varying annual installments
of$5,000-$60,000 through February 1,2005;interest at 4.75%-6.10%. 70
$320,000 Special Assessment Bonds of 1996 due in varying annual installments
of$30,000-$35,000 through February 1,2007;interest at 4.05%-4.95%. 120
$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%. 6,675
$4,185,000 General Obligation Tax Increment Refinancing Bonds of 1998,
due in varying annual installments of$75,000-$62,000 through
February 1,2012;interest at 5.10%-5.65%. 4,030
Subtotal governmental activities 11,020
66
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
Business-Type Activities:
$620,000 General 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%. 215
$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%. 85
$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%. 1,585
$1,180,000 General Obligation Water Revenue Bonds of 1998,due in
varying annual installments of$90,000-$130,000 through February 1,2011. 915
Unamortized discount (12)
Subtotal business-type activities 2,788
Total primary government $13,808
Component Units:
$1,500,000 loan payable to primary government. Due in annual installments of
$87,429,through February 1,2012; interest at 5%. $599
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 Special Assessment Tax Increment Revenue Bonds Loan Payable
December 31, Principal Interest Principal Interest Principal Interest Principal Interest
2004 $125,000 $14,135 $1,180,000 $553,001 $390,000 $128,240 $58,176 $29,253
2005 130,000 6,810 1,240,000 494,334 415,000 108,656 61,121 26,308
2006 30,000 2,213 1,530,000 425,451 375,000 89,384 64,215 23,213
2007 30,000 743 1,610,000 346,636 395,000 70,625 67,467 19,963
2008 - - 1,690,000 262,091 245,000 55,064 70,882 16,547
2009 - - 1,695,000 173,116 260,000 42,868 74,470 12,959
2010 - - 550,000 83,335 270,000 29,830 78,240 9,188
2011 - - 585,000 51,693 285,000 15,934 82,201 5,227
2012 - - 625,000 17,656 165,000 4,373 42,648 1,066
Total $315,000 $23,900 $10,705,000 $2,407,314 $2,800,000 $544,973 $599,420 $143,724
67
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
Long-term liability activity for the year ended December 31, 2003,was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
G.O.special assessment bonds $465,000 $ - ($150,000) $315,000 $125,000
Tax increment bonds 11,735,000 - (1,030,000) 10,705,000 1,180,000
Total bonds payable 12,200,000 0 (1,180,000) 11,020,000 1,305,000
Compensated absences 838,905 557,200 (558,521) 837,584 568,571
Total government activity
long-term debt $13,038,905 $557,200 ($1,738,521) $11,857,584 $1,873,571
Business-type activities:
Bonds payable:
G.O.revenue bonds $3,170,000 $ - ($370,000) $2,800,000 $390,000
Component units:
Loan payable $654,793 $ - ($55,373) $599,420 $58,176
All long-term bonded indebtedness outstanding at December 31, 2003 is backed by the full faith and
credit of the City, including improvement and revenue bond issues. Delinquent assessments
receivable at December 31, 2003 totaled $6,748.
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.
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.
68
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2003
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
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
2001 $235,602 $238,207
2002 256,281 236,696
2003 258,241 255,993
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
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
69
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
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 2003 were:
Percentage of
Amount Covered Payroll Required
Employees Employer Employees Employer Rates
PEDCP $1,932 $1,932 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 $136,778 and $100,931 in State Aid to the Association for 2003 and 2002,
respectively.
During 2003 and as of December 31, 2003, the Association held no securities issued by the
City or other related parties.
70
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
8. Legal Debt Margin
The City is subject to a statutory limitation by the State of Minnesota for bonded
indebtedness payable principally from property taxes. The City's legal debt margin for 2003
is computed as follows:
December 31,
2003
Market value(after fiscal disparities) $1,938,795,600
Debt limit(2% of market value) 38,775,912
Amount of debt applicable to debt limit:
Total bonded debt 13,820,000
Less: Nonapplicable debt(i.e., tax increment
revenue, and special assessment supported) (13,820,000)
Total debt applicable to debt limit -
Legal debt margin $38,775,912
9. Interfund Receivables, Payables and Transfers
Interfund receivables and payables of the primary government at December 31, 2003 are as
follows:
Interfund Interfund
Receivables Payables
Due From/Due To:
Major Funds:
General Fund $53,696 $ -
Nonmajor Governmental Funds:
Special Revenue Fund:
Solid Waste Abatement Fund - 42,343
HRA Reimbursement Fund - 11,353
$53,696 $53,696
71
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
Interfund receivables and payables of the HRA component unit at December 31, 2003 is as
follows:
Interfund Interfund
Receivables Payables
Due From/Due To:
General Fund $2,880,393 $ -
Capital Projects Funds:
Lake Pointe - 1,080,303
Gateway East - 1,062,653
Gateway West - 612,677
57th Avenue Redevelopment - 124,760
$2,880,393 $2,880,393
The above balances are not expected to be eliminated within one year of December 31,
2003.
Interfund Transfers:
Transfer In Transfer Out
Governmental Funds:
Major Funds:
General Fund $1,298,595 $14,506
Grant Management 23,116 -
Special Assessment - 488,005
Capital Improvement 130,543 480,000
Nonmajor Funds 735,104 625,738
Total governmental funds 2,187,358 1,608,249
Proprietary Funds:
Enterprise:
Liquor - 450,500
Water 15,346 3,300
Sewer 24,454 11,500
Storm Sewer - 133,609
Internal Service:
Employee benefit - 20,000
Total proprietary funds 39,800 618,909
Total $2,227,158 $2,227,158
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. Nonroutine transfers include the closing of the Housing Revitalization
Fund to the General Fund by a transfer of$250,000.
72
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
10. Reserved Fund Balances
The following reservations have been made of various fund balances/retained earnings of the primary
government at December 31, 2003:
General Fund:
Reserved for:
Inventory $43,502
Long-term receivables 45,910
Total General Fund 89,412
Debt Service Funds:
Reserved for long-term receivable 599,420
Reserved for debt service 609,992
Total Debt Service Funds 1,209,412
Total Governmental Funds $1,298,824
The HRA component unit had reserved fund balances at December 31, 2003:
Reserved for:
Mortgage receivable $892,428
Debt service 3,281,746
Total reserved fund balances $4,174,174
73
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
11. Designated Fund Balance
The following designations have been made of various fund balances at December 31, 2003:
General Fund:
Working capital $4,338,463
Special Revenue Funds:
Cable TV Fund:
Cable TV operations 400,353
Solid Waste Abatement:
Subsequent years expenditures -
Solid waste abatement operations 19,846
HRA Reimbursement:
Professional services -
Drug and Gambling Forfeiture Fund:
Drug and gambling enforcement 51,774
Housing Revitalization Program:
Housing revitalization -
F.C.C. Donations:
Fridley community center 89,022
Police Activity:
Public safety expenditures 1,611,017
Total Special Revenue Funds 2,172,012
Capital Projects Funds:
Capital Improvements Fund:
Future improvements 6,782,292
Total of designated fund balances $13,292,767
74
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
12. 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 $580,476 $234,639 $345,837 $ - $345,837
1981 2 Moore Lake 463,467 73,507 389,960 - 389,960
1982 3 North Area 1,399,448 204,561 1,194,887 (219,903) 974,984
1984 4 Johnson/Skywood - - - - DECERTIFIED
1984 5 Paschke - - - - DECERTIFIED
1985 6 Lake Pointe 1,512,496 83,780 1,428,716 - 1,428,716
1986 7 Winfield 46,182 11,372 34,810 - 34,810
1986 8 Shorewood - - - - DECERTIFIED
1989 9 Onan/Old Central Avenue 415,935 42,555 373,380 75,632 449,012
1990 10 Northco/Phase III - - - - DECERTIFIED
1992 11 University/Osborne 54,576 26,479 28,097 - 28,097
1992 12 McGlynn's 81,532 41,254 40,278 - 40,278
1995 13 Satellite Lane Apartments 39,559 2,333 37,226 - 37,226
1995 14 Industrial Equities 59,738 15,168 44,570 - 44,570
1997 15 MN Comm Rail - - - - DECERTIFIED
1997 16 57th Avenue Replacement 21,776 7,776 14,000 - 14,000
2000 17 Gateway East 9,759 5,089 4,670 - 4,670
I 1995 HR1/04 Housing Replacement 4,442 543 3,899 - 3,899
1995 HR1/05 Housing Replacement 1,896 270 1,626 - 1,626
1995 HR1/06 Housing Replacement 4,503 686 3,817 - 3,817
1995 HR1/Q2 Housing Replacement 1,817 318 1,499 - 1,499
1995 HR1/Q3 Housing Replacement 1,584 393 1,191 - 1,191
1995 HR1/Q4 Housing Replacement 4,706 781 3,925 - 3,925
1995 HR1/S3 Housing Replacement 1,399 516 883 - 883
1995 HR1/S4 Housing Replacement 1,829 563 1,266 - 1,266
1995 HR1/S5 Housing Replacement - - - - -
1995 HR1/S6 Housing Replacement 1,067 443 624 - 624
Totals $4,708,187 $753,026 $3,955,161 ($144,271) $3,810,890
13. 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.
75
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
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, are
considered to be immaterial.
As of December 31, 2003, the Self Insurance Fund has accumulated equity in the amount of
$79,365 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 is 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, 2003.
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.
76
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
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, 2003 is as follows:
Original 12/31/2003 Interest Maturity
Note Principal Balance Rate Date
Medtronic $10,000,000 $10,326,804 6.75% August 1, 2025
Rylund 32,000 3,089 8.00% February 1, 2004
McGlynn's 701,172 765,483 9.50% February 1, 2009
Paschke 60,000 24,468 7.00% August 2, 2005
Linn 175,000 175,000 8.50% February 1, 2012
Onan Murphy 496,303 247,018 8.00% February 1, 2016
Banfill 683,156 413,112 8.00% August 1, 2007
F. Commitments -HRA
The HRA has pledged future tax increments to the City of Fridley for the City's general
obligation tax increment debt.
77
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
14. Leases
A. Lease Expense
The City leases space for one of its liquor stores. Total costs for this lease was $74,126 for
the year ended December 31, 2003. The future minimum lease payments for this lease is as
follows:
Year Ending
December 31, Amount
2004 $85,404
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 S
2014 91,650
Total $1,098,578
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 1
to provide radio communications. For accounting purposes, the leases are considered
operating leases. Lease revenue for the year ended December 31, 2003, totaled $77,085.
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.
78
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
15. Conduit Debt Obligation
From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to
private-sector entities for the acquisition and construction of industrial and commercial facilities
deemed to be in the public interest. The bonds are secured by the property financed and are payable
solely from payments received on the underlying mortgage loans. Upon repayment of the bonds,
ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance.
Neither the City, the State, nor any political subdivision thereof is obligated in any manner for
repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying
financial statements.
As of December 31, 2003, there were 28 series of Industrial Revenue Bonds issued. The aggregate
principal amount payable for the six series issued after July 1, 1995 is $18,430,108. The aggregate
principal amount payable for the twenty-two series issued prior to July 1, 1995, could not be
determined; however, their original issue amounts totaled $65.2 million.
16. Deficit Fund Balances
At December 31, 2003, individual funds with a deficit fund balance are as follows:
City:
Capital Project Funds:
Special Assessment Capital Project Fund $291,864
Component Unit:
Lake Pointe 980,416
Gateway East 1,024,353
Gateway West 428,417
57th Avenue Redevelopment 124,914
17. Contingent Receivable
In 1999, the HRA entered into an agreement with Medtronic for the sale of land from the HRA to
Medtronic. The original principal amount of the receivable was$5,000,000. Interest is added
quarterly at a rate of 8.25%. Payments on the note receivable are made in an amount equal to
11.11% of tax increment note payments received by Medtronic through 2012, and 22.22% of tax
increment note payments receivable from 2012 through 2026.
18. Subsequent Events
On March 23, 2004 the city sold three new bond issues; $1,790,000 Water Revenue Bonds,
$3,920,000 G.O. Tax Increment Refunding Bonds and $1,285,000 G.O. Refunding Bonds.
79
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
19. Change in Accounting Principle
In June 1999, the Governmental Accounting Standards Board (GASB) approved Statement No. 34,
Basic Financial Statements—and Management's Discussion and Analysis—for State and Local
Governments. The City is required to implement GASB 34 no later than the year ended December
31, 2003. The City elected to implement GASB 34, including the infrastructure—related portion,
during 2003. The most significant effects of implementing GASB 34 during 2003 are as follows:
• Government-wide financial statements are prepared using full accrual accounting for all the
City's activities.
• Infrastructure and construction in progress for governmental activities has been capitalized
and all capital assets are depreciated on the government-wide financial statements. See
Note 4 for restatement of previously reported amounts.
• The basic fund financial statements focus on major funds rather than fund types.
• A Management Discussion and Analysis(MD&A) is included as required supplementary
information.
These and other changes are reflected in the accompanying financial statements (including notes to
the financial statements).
The City also implemented the following pronouncements during 2003, which did not have a material
effect on the accompanying financial statements:
• GASB Statement 36, Recipient Reporting for Certain Shared Nonexchange Revenues—an
Amendment to GASB Statement 33
• GASB Statement 37, Basic Financial Statements—and Management's Discussion and
Analysis-for State and Local Governments: Omnibus—an Amendment of GASB Statements
No. 21 and No. 34.
• GASB Statement 38, Certain Financial Statement Note Disclosures
80
REQUIRED SUPPLEMENTARY INFORMATION
81
,
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, 2003 ,
i
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes and special assessments:
Current ad valorem taxes $5,716,590 $5,219,655 $5,163,859 ($55,796)
Delinquent ad valorem taxes 10,000 10,000 40,099 30,099
Penalties and interest 12,000 12,000 15,589 3,589
Forfeited sale-taxes 5,000 5,000 - (5,000)
Special assessments 7,800 7,800 2,942 (4,858)
Total taxes and special assessments 5,751,390 5,254,455 5,222,489 (31,966)
Licenses and permits:
Licenses:
Contractor 52,400 52,400 54,303 1,903
Business 104,700 104,700 111,068 6,368
All other 45,000 45,000 32,938 (12,062)
Permits 220,700 220,700 359,611 138,911 ,
Total licenses and permits 422,800 422,800 557,920 135,120
Intergovernmental revenue:
Civil defense 4,000 4,000 4,913 913
Federal grants - 1,531 2,734 1,203
State maintenance aid 200,000 200,000 205,096 5,096
State credits - 496,935 496,935 -
Local government aid 2,045,663 2,045,663 1,323,915 (721,748)
Other state grants 16,000 37,685 35,576 (2,109)
Police and fire pension 352,282 367,544 424,360 56,816
Other 25,000 29,750 7,159 (22,591)
Total intergovernmental revenue 2,642,945 3,183,108 2,500,688 (682,420)
Charges for services:
General government 820,200 822,700 831,381 8,681 ,
Public safety 215,450 256,655 147,128 (109,527)
Public works 14,400 14,400 5,448 (8,952)
Community development 8,870 8,870 10,244 1,374
Recreation 277,600 277,600 281,311 3,711
Total charges for services 1,336,520 1,380,225 1,275,512 (104,713)
Fines and forfeits 190,500 190,500 203,533 13,033
Investment income 400,000 400,000 87,349 (312,651)
Miscellaneous revenue:
Insurance and other reimbursements 50,000 58,691 90,295 31,604
Gambling tax 67,000 67,000 82,271 15,271
Donations - 12,725 26,352 13,627
Miscellaneous 45,730 45,730 23,742 (21,988)
Total miscellaneous revenue 162,730 184,146 222,660 38,514
Total revenues 10,906,885 11,015,234 10,070,151 (945,083)
1
82
Exhibit B-1
Page 2 of 4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND
For The Year Ended December 31,2003
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures:
\ General government:
Mayor and council:
Personal services 74,766 74,766 72,529 2,237
Supplies and other charges 60,680 60,680 48,539 _ 12,141
Total mayor and council 135,446 135,446 121,068 14,378
Planning commission:
Supplies and other charges 994 994 5 989
Other commissions:
Supplies and other charges 2,645 2,645 63 2,582
City manager:
Personal services 239,674 232,798 190,695 42,103
Supplies and other charges 60,158 60,158 54,353 5,805
Total City manager 299,832 292,956 245,048 47,908
Human resources:
Personal services 128,620 144,628 144,628 -
Supplies and other charges 23,414 14,282 14,282 -
Total human resources 152,034 158,910 158,910 0
Legal:
Supplies and other charges 314,018 314,018 308,077 5,941
Elections:
Supplies and other charges 1,230 1,230 49 1,181
Accounting:
Personal services 574,171 572,306 565,519 6,787
Supplies and other charges 102,725 107,090 107,090
Total accounting 676,896 679,396 672,609 6,787
Assessing:
Personal services 144,116 144,116 139,349 4,767
Supplies and other charges 11,879 11,879 6,691 5,188
Total assessing 155,995 155,995 146,040 9,955
MIS:
Personal services 141,453 142,900 142,900 -
Supplies and other charges 116,794 115,347 84,006 31,341
Total MIS 258,247 258,247 226,906 31,341
City clerk/records:
Personal services 146,860 146,860 144,092 2,768
Supplies and other charges 26,965 26,965 19,968 6,997
Total City clerk/records 173,825 173,825 164,060 9,765
Nondepartmental:
Personal services - 21,037 21,037 -
Supplies and other charges 88,034 66,997 57,192 9,805
Total nondepartmental 88,034 88,034 78,229 9,805
83
Exhibit B-1
Page3of4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION '
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND
For The Year Ended December 31, 2003
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures: (continued)
General government: (continued) ,
Municipal center:
Personal services $32,404 $32,404 $24,612 $7,792
Supplies and other charges 221,771 221,771 185,905 35,866
Total municipal center 254,175 254,175 210,517 43,658
Total general government 2,513,371 2,515,871 2,331,581 184,290 '
Expenditures:
Public safety:
Police:
Personal services 3,481,966 3,529,452 3,464,027 65,425
Supplies and other charges 397,690 444,995 388,059 56,936
Total police 3,879,656 3,974,447 3,852,086 122,361
Fire:
Personal services 848,827 848,827 812,693 36,134
Supplies and other charges 189,492 200,267 178,732 21,535 ,
Total fire 1,038,319 1,049,094 991,425 57,669
Rental inspections:
Personal services 112,071 112,071 64,099 47,972
Supplies and other charges 14,489 14,489 7,119 7,370
Total rental inspections 126,560 126,560 71,218 55,342
Civil defense: ■
Supplies and other charges 15,687 15,687 10,796 4,891
Total public safety 5,060,222 5,165,788 4,925,525 240,263
Public works:
Engineering:
Personal services 433,474 433,474 392,059 41,415
Supplies and other charges 107,540 107,540 80,588 26,952
Total engineering 541,014 541,014 472,647 68,367
Public works and parks:
Personal services 1,427,779 1,415,367 1,352,367 63,000
Supplies and other charges 906,845 919,257 850,726 68,531
Total public works and parks 2,334,624 2,334,624 2,203,093 131,531
Total public works 2,875,638 2,875,638 2,675,740 199,898
Community development:
Building inspection:
Personal services 194,586 196,778 196,778 -
Supplies and other charges 105,419 114,635 114,635 -
Total building inspection 300,005 311,413 311,413 0
84
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, 2003
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures: (continued)
Community development: (continued)
Planning:
.. Personal services $396,803 $394,611 $389,295 $5,316
■ Supplies and other charges 65,339 56,123 41,884 14,239
Total planning 462,142 450,734 431,179 19,555
Total community development 762,147 762,147 742,592 19,555
Expenditures:
Recreation and naturalist:
Recreation:
Personal services 628,008 628,008 517,429 110,579
Supplies and other charges 311,463 301,675 240,520 61,155
Total recreation 939,471 929,683 757,949 171,734
Naturalist:
Personal services 231,140 240,067 240,067 -
Supplies and other charges 72,291 70,859 70,859 -
Total naturalist 303,431 310,926 310,926 0
Total recreation and naturalist 1,242,902 1,240,609 1,068,875 171,734
Capital outlay:
Police 109,480 109,480 106,440 3,040
Fire - 5,000 5,000 -
Public works 213,500 213,500 186,322 27,178
Total capital outlay 322,980 327,980 297,762 30,218
Total expenditures 12,777,260 12,888,033 12,042,075 845,958
Excess(deficiency)of revenues over(under)
expenditures (1,870,375) (1,872,799) (1,971,924) (99,125)
Other financing sources (uses):
Transfers in 1,048,095 1,048,095 1,298,595 250,500
Transfers out (106,651) (101,651) (14,506) 87,145
Total other financing sources (uses) 941,444 946,444 1,284,089 337,645
Excess (deficiency)of revenues and other
financing sources over(under)expenditures
and other financing uses ($928,931) ($926,355) ($687,835) 238,520
Fund balance-January 1 5,115,710
Fund balance-December 31 $4,427,875
85
Exhibit B-2
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GRANT MANAGEMENT FUND
For The Year Ended December 31, 2003
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental:
Federal grants $150,746 $342,305 $349,807 $7,502
State grants 42,686 523,467 433,554 (89,913)
Other - - 28,106 28,106
Total intergovernmental revenue 193,432 865,772 811,467 (54,305)
Miscellaneous revenue:
Donations 200 200 28,393 28,193
Total revenues 193,632 865,972 839,860 (26,112)
Expenditures:
Current:
General government:
Personal services 181,565 133,833 133,833 -
Supplies and other charges 9,071 537,584 537,584 -
Total general government 190,636 671,417 671,417 0
Community development:
Supplies and other charges - - 191,559 (191,559)
Total expenditures 190,636 671,417 862,976 (191,559)
Excess (deficiency)of revenues over(under)expenditures 2,996 194,555 (23,116) (217,671)
Other financing sources (uses):
Transfers in 46,731 55,340 23,116 (32,224)
Excess (deficiency)of revenues and other financing
sources over(under)expenditures and other
financing uses $49,727 $249,895 0 ($249,895)
Fund balance-January 1 -
Fund balance-December 31 $0
86
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2003
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. The following is a listing of whose expenditure
category levels exceeded budget appropriations:
Final Over
Budget Actual Budget
Major Funds:
Grant Management Fund:
Community development
Supplies and other charges $ - $191,559 $191,559
87
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88
COMBINING AND INDIVIDUAL FUND STATEMENTS AND
SCHEDULES
89
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90
NONMAJOR GOVERNMENTAL FUNDS
91
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92
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.
93
Exhibit C-1
CITY OF FRIDLEY, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31,2003
Capital
Projects/ Totals
Special Nonmajor
Special Assessment Governmental
Revenue Construction Funds
Assets
Cash and investments $2,111,832 $ - $2,111,832
Receivables:
Accounts 58,954 - 58,954
Special assessments - 40,611 40,611
Due from component unit 11,353 - 11,353
Due from other governments 59,515 - 59,515
Total assets $2,241,654 $40,611 $2,282,265
Liabilities and Fund Balance
Liabilities:
Accounts payable $352 $3,779 4,131
Deposits payable 10,027 - 10,027
Contracts payable - 39,954 39,954
Salaries payable 5,560 203 5,763
Deferred revenue - 40,611 40,611
Due to other funds 53,696 247,928 301,624
Due to other governments 7 - 7
Total liabilities 69,642 332,475 402,117
Fund balance (deficit):
Unreserved:
Designated 2,172,012 - 2,172,012
Undesignated - (291,864) (291,864)
Total fund balance (deficit) 2,172,012 (291,864) 1,880,148
Total liabilities and fund balance $2,241,654 $40,611 $2,282,265
94
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, 2003
Capital
Projects/ Totals
Special Nonmajor
Special Assessment Governmental
Revenue Construction Funds
Revenues:
Special assessments $ - $16,576 $16,576
Licenses and permits 164,621 - 164,621
Intergovernmental revenue 78,027 - 78,027
Charges for services 224,917 - 224,917
Fines and forfeits 12,835 - 12,835
Investment income 35,638 2,030 37,668
Miscellaneous 4,834 - 4,834
Total revenues 520,872 18,606 539,478
Expenditures:
Current:
General government 474,252 - 474,252
Public works - 36,681 36,681
Capital outlay - 685,049 685,049
Total expenditures 474,252 721,730 1,195,982
Excess(deficiency)of revenues over(under)expenditures 46,620 (703,124) (656,504)
Other financing sources (uses):
Transfers in - 735,104 735,104
Transfers out (595,195) (30,543) (625,738)
Total other financing sources (uses) (595,195) 704,561 109,366
Net change in fund balance (548,575) 1,437 (547,138)
Fund balance-January 1 2,720,587 (293,301) 2,427,286
Fund balance -December 31 $2,172,012 ($291,864) $1,880,148
95
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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 States, the proceeds are disbursed between the
investigating agency and the prosecuting agency.
Housing Revitalization Fund -This fund receives revenues to administer the City Council's priority of
improving housing rehabilitation programs to revitalize aging neighborhoods in the community.
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
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2003
Cable Solid Waste
Assets TV Abatement
Cash and investments $371,727 $ -
Accounts receivable 41,454 17,500
Due from component unit - -
Due from other governments - 47,807
Total assets $413,181 $65,307
Liabilities and Fund Balance
Liabilities:
Accounts payable $270 $82
Deposits payable 10,027 -
Salaries payable 2,524 3,036
Due to other funds - 42,343
Due to other governments 7 -
Total liabilities 12,828 45,461
Fund balance:
Unreserved:
Designated for special revenue programs 400,353 19,846
Total liabilities and fund balance $413,181 $65,307
98
Exhibit C-3
Total
Nonmajor
Drug and Special
HRA Gambling Housing F.C.C. Police Revenue
Reimbursement Forfeiture Revitalization Donations Activity Funds
$ - $40,066 $ - $89,022 $1,611,017 $2,111,832
- - - - - 58,954
11,353 - - - - 11,353
- 11,708 - - - 59,515
$11,353 $51,774 $0 $89,022 $1,611,017 $2,241,654
$ - $ - $ - $ - $ - $352
- - - - - 10,027
- - - - - 5,560
11,353 - - - - 53,696
- - - - - 7
11,353 0 0 0 0 69,642
- 51,774 - 89,022 1,611,017 2,172,012
$11,353 $51,774 $0 $89,022 $1,611,017 $2,241,654
99
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2003
Cable Solid Waste
TV Abatement
Revenues:
Licenses and permits $164,621 $ -
Intergovernmental revenue - 52,966
Charges for services 801 224,116
Fines and forfeits - -
Investment income 5,865 -
Miscellaneous - 725
Total revenues 171,287 277,807
Expenditures:
Current:
General government 124,019 310,833
Excess (deficiency)of revenues
over(under)expenditures 47,268 (33,026)
Other financing sources (uses):
Transfers out - -
Excess (deficiency)of revenues and
other financing sources over(under)
expenditures and other financing uses 47,268 (33,026)
Fund balance-January 1 353,085 52,872
Fund balance-December 31 $400,353 $19,846
100
Exhibit C-4
Total
Nonmajor
Drug and Special
HRA Gambling Housing F.C.C. Police Revenue
Reimbursement Forfeiture Revitalization Donations Activity Funds
$ - $ - $ - $ - $ - $164,621
25,061 - - - - 78,027
- - - - - 224,917
- 12,835 - - - 12,835
- - - 1,461 28,312 35,638
- 4,109 - - - 4,834
25,061 16,944 0 1,461 28,312 520,872
25,476 12,042 - 1,882 - 474,252
(415) 4,902 0 (421) 28,312 46,620
- - (250,000) - (345,195) (595,195)
(415) 4,902 (250,000) (421) (316,883) (548,575)
415 46,872 250,000 89,443 1,927,900 2,720,587
$0 $51,774 $0 $89,022 $1,611,017 $2,172,012
101
Exhibit D-1
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -CABLE TV FUND
COMPARATIVE BALANCE SHEET
December 31, 2003 and 2002
Assets 2003 2002
Cash and investments $371,727 $330,460
Accounts receivable 41,454 42,357
Total assets $413,181 $372,817
Liabilities and Fund Balance
Liabilities:
Accounts payable $270 $7,424
Deposits payable 10,027 10,068
Salaries payable 2,524 2,240
Due to other governments 7 -
Total liabilities 12,828 19,732
Fund balance:
Unreserved:
Designated for special revenue programs 400,353 353,085
Total liabilities and fund balance $413,181 $372,817
102
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, 2003
With comparative actual amounts for year ended December 31,2002
2003 2002
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Licenses-franchise fee $180,000 $180,000 $164,621 $171,076
Charges for services 830 830 801 897
Investment income 11,000 11,000 5,865 8,438
Total revenues 191,830 191,830 171,287 180,411
Expenditures:
Current:
General government:
Personal services 97,360 97,360 102,631 99,524
Supplies and other charges 30,040 30,040 21,388 29,627
Capital outlay - - - 7,667
Total expenditures 127,400 127,400 124,019 136,818
Excess (deficiency)of revenues over(under)expenditures $64,430 $64,430 47,268 43,593
Fund balance-January 1 353,085 309,492
Fund balance-December 31 $400,353 $353,085
103
Exhibit D-3
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -SOLID WASTE ABATEMENT FUND
COMPARATIVE BALANCE SHEET
December 31, 2003 and 2002
Assets 2003 2002
Cash $ - $4,961
Accounts receivable 17,500 17,465
Due from other governments 47,807 56,265
Total assets $65,307 $78,691
Liabilities and Fund Balance
Liabilities:
Accounts payable $82 $22,817
Salaries payable 3,036 3,002
Due to other funds 42,343 -
Total liabilities 45,461 25,819
Fund balance:
Unreserved:
Designated for subsequent year's expenditures - 31,705
Designated for special revenue programs 19,846 21,167
Total fund balance 19,846 52,872
Total liabilities and fund balance $65,307 $78,691
104
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, 2003
With comparative actual amounts for year ended December 31, 2002
2003 2002
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Intergovernmental revenue:
State $64,560 $64,560 $52,966 $71,738
Charges for services 224,100 224,100 224,116 212,961
Miscellaneous 2,500 2,500 725 2,620
Total revenues 291,160 291,160 277,807 287,319
Expenditures:
Current:
General government:
Personal services 69,547 69,547 66,981 64,551
Supplies and other charges 253,318 253,318 243,852 268,059
Total expenditures 322,865 322,865 310,833 332,610
Excess(deficiency)of revenues over(under)expenditures (31,705) (31,705) (33,026) (45,291)
Other financing sources (uses):
Transfer in:
Special Assessments Debt Service Fund - - - 129,384
Excess (deficiency)of revenues and other
financing sources over(under)expenditures and
other financing uses ($31,705) ($31,705) (33,026) 84,093
Fund balance (deficit)-January 1 52,872 (31,221)
Fund balance-December 31 $19,846 $52,872
105
Exhibit D-5
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -HRA REIMBURSEMENT FUND
COMPARATIVE BALANCE SHEET
December 31, 2003 and 2002
Assets 2003 2002
Due from component unit $11,353 $2,190
Total assets $11,353 $2,190
Liabilities and Fund Balance
Liabilities:
Accounts payable $ - $63
Due to other funds 11,353 1,712
Total liabilities 11,353 1,775
Fund balance:
Unreserved:
Designated for special revenue programs - 415
Total liabilities and fund balance $11,353 $2,190
106
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, 2003
With comparative actual amounts for year ended December 31,2002
2003 2002
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Intergovernmental revenue:
Housing and Redevelopment Authority $ - $25,476 $25,061 $25,018
Expenditures:
Current:
General government:
Supplies and other charges - 25,476 25,476 25,191
Excess (deficiency)of revenues over(under)expenditures $0 $0 (415) (173)
Fund balance-January 1 415 588
Fund balance-December 31 $0 $415
107
Exhibit D-7
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -DRUG AND GAMBLING FORFEITURE FUND
COMPARATIVE BALANCE SHEET
December 31,2003 and 2002
Assets 2003 2002
Cash and investments $40,066 $37,079
Due from other governments 11,708 11,000
Total assets $51,774 $48,079
Liabilities and Fund Balance
Liabilities:
Accounts payable $ - $692
Due to other governments - 515
Total liabilities 0 1,207
Fund balance:
Unreserved:
Designated for special revenue programs 51,774 46,872
Total liabilities and fund balance $51,774 $48,079
108
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, 2003
With comparative actual amounts for year ended December 31, 2002
2003 2002
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Fines and forfeits $ - $12,835 $12,835 $20,418
Miscellaneous - - 4,109 -
Total revenues 0 12,835 16,944 20,418
Expenditures:
Current:
Public safety:
Supplies and other charges - 12,042 12,042 21,542
Capital outlay - - - -
Total expenditures 0 12,042 12,042 21,542
Excess (deficiency)of revenues over(under)expenditures 0 793 4,902 (1,124)
Other financing sources (uses):
Transfers out:
Information Systems Internal Service Fund - - - (2,679)
Excess (deficiency)of revenues and other financing
sources over(under)expenditures and other
financing uses $0 $793 4,902 (3,803)
Fund balance-January 1 46,872 50,675
Fund balance-December 31 $51,774 $46,872
109
Exhibit D-9
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -HOUSING REVITALIZATION FUND
COMPARATIVE BALANCE SHEET
December 31, 2003 and 2002
Assets 2003 2002
Cash and investments $ - $250,000
Total assets $0 $250,000
Liabilities and Fund Balance
Liabilities $ - $ -
Fund balance:
Unreserved:
Designated for special revenue programs - 250,000
Total liabilities and fund balance $0 $250,000
I
110
Exhibit D-10
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -HOUSING REVITALIZATION FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For The Year Ended December 31, 2003
With comparative actual amounts for year ended December 31, 2002
2003 2002
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues $ - $ - $ - $ -
Expenditures - - - -
Excess(deficiency)of revenues over(under)expenditures 0 0 0 0
Other financing sources (uses):
Transfers out:
General Fund (250,000) (250,000) (250,000) 0
Excess (deficiency)of revenues and other financing
sources over(under)expenditures and other
financing uses ($250,000) ($250,000) (250,000) -
Fund balance-January 1 250,000 250,000
Fund balance- December 31 $0 $250,000
111
Exhibit D-11
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -F.C.C. DONATIONS FUND
COMPARATIVE BALANCE SHEET
December 31, 2003 and 2002
Assets 2003 2002
Cash and investments $89,022 $89,443
Total assets $89,022 $89,443
Liabilities and Fund Balance
Liabilities:
Due to other governments $ - $ -
Fund balance:
Unreserved:
Designated for special revenue programs 89,022 89,443
Total liabilities and fund balance $89,022 $89,443
112
REQUIRED SUPPLEMENTARY INFORMATION
81
,
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, 2003
Variance with
Final Budget-
Budgeted Amounts Actual Positive ,
Original Final Amounts (Negative)
Revenues:
Taxes and special assessments:
Current ad valorem taxes $5,716,590 $5,219,655 $5,163,859 ($55,796)
Delinquent ad valorem taxes 10,000 10,000 40,099 30,099
Penalties and interest 12,000 12,000 15,589 3,589
Forfeited sale-taxes 5,000 5,000 - (5,000)
Special assessments 7,800 7,800 2,942 (4,858)
Total taxes and special assessments 5,751,390 5,254,455 5,222,489 (31,966)
Licenses and permits:
Licenses:
Contractor 52,400 52,400 54,303 1,903
Business 104,700 104,700 111,068 6,368
All other 45,000 45,000 32,938 (12,062)
Permits 220,700 220,700 359,611 138,911 ,
Total licenses and permits 422,800 422,800 557,920 135,120
Intergovernmental revenue:
Civil defense 4,000 4,000 4,913 913
Federal grants - 1,531 2,734 1,203
State maintenance aid 200,000 200,000 205,096 5,096
State credits - 496,935 496,935 -
Local government aid 2,045,663 2,045,663 1,323,915 (721,748)
Other state grants 16,000 37,685 35,576 (2,109)
Police and fire pension 352,282 367,544 424,360 56,816
Other 25,000 29,750 7,159 (22,591) ■
Total intergovernmental revenue 2,642,945 3,183,108 2,500,688 (682,420) , 1
Charges for services:
General government 820,200 822,700 831,381 8,681 ,
Public safety 215,450 256,655 147,128 (109,527)
Public works 14,400 14,400 5,448 (8,952)
Community development 8,870 8,870 10,244 1,374
Recreation 277,600 277,600 281,311 3,711
Total charges for services 1,336,520 1,380,225 1,275,512 (104,713)
Fines and forfeits 190,500 190,500 203,533 13,033
Investment income 400,000 400,000 87,349 (312,651)
Miscellaneous revenue:
Insurance and other reimbursements 50,000 58,691 90,295 31,604
Gambling tax 67,000 67,000 82,271 15,271
Donations - 12,725 26,352 13,627
Miscellaneous 45,730 45,730 23,742 (21,988)
Total miscellaneous revenue 162,730 184,146 222,660 38,514
Total revenues 10,906,885 11,015,234 10,070,151 (945,083)
1
82
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, 2003
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures:
General government:
Mayor and council:
Personal services 74,766 74,766 72,529 2,237
Supplies and other charges 60,680 60,680 48,539 12,141
Total mayor and council 135,446 135,446 121,068 14,378
Planning commission:
Supplies and other charges 994 994 5 989
Other commissions:
Supplies and other charges 2,645 2,645 63 2,582
City manager:
Personal services 239,674 232,798 190,695 42,103
Supplies and other charges 60,158 60,158 54,353 5,805
Total City manager 299,832 292,956 245,048 47,908
Human resources:
Personal services 128,620 144,628 144,628 -
Supplies and other charges 23,414 14,282 14,282 -
Total human resources 152,034 158,910 158,910 0
Legal:
„� Supplies and other charges 314,018 314,018 308,077 5,941
Elections:
Supplies and other charges 1,230 1,230 49 1,181
Accounting:
Personal services 574,171 572,306 565,519 6,787
Supplies and other charges 102,725 107,090 107,090
Total accounting 676,896 679,396 672,609 6,787
Assessing:
Personal services 144,116 144,116 139,349 4,767
Supplies and other charges 11,879 11,879 6,691 5,188
Total assessing 155,995 155,995 146,040 9,955
MIS:
Personal services 141,453 142,900 142,900 -
Supplies and other charges 116,794 115,347 84,006 31,341
Total MIS 258,247 258,247 226,906 31,341
City clerk/records:
Personal services 146,860 146,860 144,092 2,768
Supplies and other charges 26,965 26,965 19,968 6,997
Total City clerk/records 173,825 173,825 164,060 9,765
Nondepartmental:
Personal services - 21,037 21,037 -
Supplies and other charges 88,034 66,997 57,192 9,805
Total nondepartmental 88,034 88,034 78,229 9,805
83
1
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, 2003
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures: (continued)
General government: (continued)
Municipal center:
Personal services $32,404 $32,404 $24,612 $7,792
Supplies and other charges 221,771 221,771 185,905 35,866
Total municipal center 254,175 254,175 210,517 43,658
Total general government 2,513,371 2,515,871 2,331,581 184,290
Expenditures:
Public safety:
Police:
Personal services 3,481,966 3,529,452 3,464,027 65,425
Supplies and other charges 397,690 444,995 388,059 56,936
Total police 3,879,656 3,974,447 3,852,086 122,361
Fire:
Personal services 848,827 848,827 812,693 36,134 ,
Supplies and other charges 189,492 200,267 178,732 21,535
Total fire 1,038,319 1,049,094 991,425 57,669
Rental inspections:
A
Personal services 112,071 112,071 64,099 47,972
Supplies and other charges 14,489 14,489 7,119 7,370
Total rental inspections 126,560 126,560 71,218 55,342
Civil defense: ,
Supplies and other charges 15,687 15,687 10,796 4,891
Total public safety 5,060,222 5,165,788 4,925,525 240,263 ,
Public works:
Engineering:
Personal services 433,474 433,474 392,059 41,415
Supplies and other charges 107,540 107,540 80,588 26,952
Total engineering 541,014 541,014 472,647 68,367
Public works and parks:
Personal services 1,427,779 1,415,367 1,352,367 63,000
Supplies and other charges 906,845 919,257 850,726 68,531
Total public works and parks 2,334,624 2,334,624 2,203,093 131,531
Total public works 2,875,638 2,875,638 2,675,740 199,898
Community development:
Building inspection:
Personal services 194,586 196,778 196,778 -
Supplies and other charges 105,419 114,635 114,635 -
Total building inspection 300,005 311,413 311,413 0
84
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, 2003
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures: (continued)
Community development: (continued)
Planning:
Personal services $396,803 $394,611 $389,295 $5,316
Supplies and other charges 65,339 56,123 41,884 14,239
Total planning 462,142 450,734 431,179 19,555
Total community development 762,147 762,147 742,592 19,555
Expenditures:
Recreation and naturalist:
Recreation:
Personal services 628,008 628,008 517,429 110,579
Supplies and other charges 311,463 301,675 240,520 61,155
Total recreation 939,471 929,683 757,949 171,734
Naturalist:
Personal services 231,140 240,067 240,067 -
Supplies and other charges 72,291 70,859 70,859 -
Total naturalist 303,431 310,926 310,926 0
Total recreation and naturalist 1,242,902 1,240,609 1,068,875 171,734
Capital outlay:
Police 109,480 109,480 106,440 3,040
Fire - 5,000 5,000 -
Public works 213,500 213,500 186,322 27,178
Total capital outlay 322,980 327,980 297,762 30,218
Total expenditures 12,777,260 12,888,033 12,042,075 845,958
Excess (deficiency)of revenues over(under)
expenditures (1,870,375) (1,872,799) (1,971,924) (99,125)
Other financing sources (uses):
Transfers in 1,048,095 1,048,095 1,298,595 250,500
Transfers out (106,651) (101,651) (14,506) 87,145
Total other financing sources (uses) 941,444 946,444 1,284,089 337,645
Excess (deficiency)of revenues and other
financing sources over(under)expenditures
and other financing uses ($928,931) ($926,355) ($687,835) 238,520
Fund balance-January 1 5,115,710
Fund balance-December 31 $4,427,875
85
Exhibit B-2
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GRANT MANAGEMENT FUND
For The Year Ended December 31, 2003
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental:
Federal grants $150,746 $342,305 $349,807 $7,502
State grants 42,686 523,467 433,554 (89,913)
Other - - 28,106 28,106
Total intergovernmental revenue 193,432 865,772 811,467 (54,305)
Miscellaneous revenue:
Donations 200 200 28,393 28,193
Total revenues 193,632 865,972 839,860 (26,112)
Expenditures:
Current:
General government:
Personal services 181,565 133,833 133,833 -
Supplies and other charges 9,071 537,584 537,584 -
Total general government 190,636 671,417 671,417 0
Community development:
Supplies and other charges - - 191,559 (191,559)
Total expenditures 190,636 671,417 862,976 (191,559)
Excess (deficiency)of revenues over(under)expenditures 2,996 194,555 (23,116) (217,671)
Other financing sources (uses):
Transfers in 46,731 55,340 23,116 (32,224)
Excess (deficiency)of revenues and other financing
sources over(under)expenditures and other
financing uses $49,727 $249,895 0 ($249,895)
Fund balance-January 1 -
Fund balance-December 31 $0
86
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2003
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. The following is a listing of whose expenditure
category levels exceeded budget appropriations:
Final Over
Budget Actual Budget
Major Funds:
Grant Management Fund:
Community development
Supplies and other charges $ - $191,559 $191,559
87
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88
Exhibit D-12
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, 2003
With comparative actual amounts for year ended December 31, 2002
2003 2002
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Investment income $ - $1,461 $1,461 $2,390
Expenditures:
Current:
Recreation and naturalist:
Supplies and other charges - 1,882 1,882 -
Excess(deficiency)of revenues over(under)expenditures $0 ($421) (421) 2,390
Fund balance-January 1 89,443 87,053
Fund balance-December 31 $89,022 $89,443
113
Exhibit D-13
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND -POLICE ACTIVITY FUND
COMPARATIVE BALANCE SHEET
December 31,2003 and 2002
Assets 2003 2002
Cash and investments $1,611,017 $1,927,900
Total assets $1,611,017 $1,927,900
Liabilities and Fund Balance
Liabilities $ - $ -
Fund balance:
Unreserved:
Designated for special revenue programs 1,611,017 1,927,900
Total liabilities and fund balance $1,611,017 $1,927,900
114
Exhibit D-14
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, 2003
With comparative actual amounts for year ended December 31, 2002
2003 2002
Budgeted Amounts Actual Actual
Original Final Amounts Amounts
Revenues:
Investment income $63,000 $63,000 $28,312 $55,955
Expenditures - - - - -
Excess (deficiency)of revenues over(under)expenditures 63,000 63,000 28,312 55,955
Other financing sources (uses):
Transfers out:
General Fund (345,195) (345,195) (345,195) (303,400)
Excess (deficiency)of revenues and other financing
sources over(under)expenditures and other
financing uses ($282,195) ($282,195) (316,883) (247,445)
Fund balance-January 1 1,927,900 2,175,345
Fund balance- December 31 $1,611,017 $1,927,900
115
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116
I
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.
117
Exhibit E-1
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2003
Employee Self Information
Benefits Insurance Systems Totals
Assets:
Current assets:
Cash and investments $996,264 $1,979,271 $735,137 $3,710,672
Capital assets, at cost:
Machinery and equipment - - 1,226,685 1,226,685
Less: accumulated depreciation - - (810,820) (810,820)
Net capital assets 0 0 415,865 415,865
Total assets 996,264 1,979,271 1,151,002 4,126,537
Liabilities:
Current liabilities:
Accounts payable 233 578 13 824
Payroll deductions payable 79,082 - - 79,082
Compensated absences payable-current portion 592,425 - - 592,425
Total current liabilities 671,740 578 13 672,331
Noncurrent liabilities:
Compensated absences payable 245,159 - - 245,159
Total liabilities 916,899 578 13 917,490
Net assets:
Invested in capital assets, net of related debt - - 415,865 415,865
Unrestricted 79,365 _ 1,978,693 735,124 2,793,182
Total net assets $79,365 $1,978,693 $1,150,989 $3,209,047
118
Exhibit E-2
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS
INTERNAL SERVICE FUNDS
For The Year Ended December 31, 2003
Employee Self Information
Benefits Insurance Systems Totals
Operating revenues:
Charges for services $ - $ - $158,202 $158,202
Operating expenses:
Personal services 28,633 11,970 - 40,603
Supplies and other charges 3,301 58,663 - 61,964
Depreciation - - 171,299 171,299
Total operating expenses 31,934 70,633 171,299 273,866
Operating income(loss) (31,934) (70,633) (13,097) (115,664)
Nonoperating revenues:
Investment income 16,957 32,406 11,661 61,024
Income (loss) before transfers (14,977) (38,227) (1,436) (54,640)
Transfers out:
General Fund (20,000) - - (20,000)
Change in net assets (34,977) (38,227) (1,436) (74,640)
' Net assets-January 1 114,342 2,016,920 1,152,425 3,283,687
Net assets- December 31 $79,365 $1,978,693 $1,150,989 $3,209,047
119
Exhibit E-3
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For The Year Ended December 31, 2003
Employee Self Information
Benefits Insurance Systems Totals
Cash flows from operating activities:
Receipts from interfund services provided $ - $740 $158,202 $158,942
Receipts from component units - 274 - 274
Payment to suppliers (3,068) (125,019) (31,084) (159,171)
Payment to employees (26,604) - - (26,604)
Net cash flows from operating activities (29,672) (124,005) 127,118 (26,559)
Cash flows from noncapital financing activities:
Transfers out (20,000) - - (20,000)
Cash flows from capital and related
financing activities:
Acquisition of capital assets - - (124,739) (124,739)
Cash flows from investing activities: ■
Investment income 16,957 32,406 11,661 61,024
Net increase (decrease) in cash and cash equivalents (32,715) (91,599) 14,040 (110,274)
Cash and cash equivalents-January 1 1,028,979 2,070,870 721,097 3,820,946
I
Cash and cash equivalents- December 31 $996,264 $1,979,271 $735,137 $3,710,672
Reconciliation of operating income (loss)to net cash
provided (used) by operating activities:
Operating income (loss) ($31,934) ($70,633) ($13,097) ($115,664)
Adjustments to reconcile operating income(loss)
to net cash flows from operating activities:
Depreciation - - 171,299 171,299
Changes in assets and liabilities:
Decrease (increase)in receivables - 1,014 - 1,014
Increase (decrease) in payables 2,262 (54,386) (31,084) (83,208)
Total adjustments 2,262 (53,372) 140,215 89,105
Net cash provided by operating activities ($29,672) ($124,005) $127,118 ($26,559)
l
120
Exhibit E-4
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND -EMPLOYEE BENEFITS FUND
STATEMENT OF NET ASSETS
December 31, 2003
2003 2002
Assets:
Cash and investments $996,264 $1,028,979
Liabilities:
Current liabilities:
Accounts payable 233 -
Payroll deductions payable 79,082 75,732
Compensated absences payable-current portion 592,425 580,809
Total current liabilities 671,740 656,541
Noncurrent liabilities:
Compensated absences payable 245,159 258,096
Total liabilities 916,899 914,637
Net assets:
Unrestricted 79,365 114,342
Total net assets $79,365 $114,342
121
Exhibit E-5
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND -EMPLOYEE BENEFITS FUND
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS
For The Year Ended December 31, 2003
With comparative amounts for year ended December 31,2002
2003 2002
Operating revenues:
Charges for services $ - $3,818
Operating expenses:
Personal services 28,633 10,498
Supplies and other charges 3,301 1,058
Total operating expenses 31,934 11,556
Operating income(loss) (31,934) (7,738)
Nonoperating revenues:
Investment income 16,957 26,617
Income (loss) before transfers (14,977) 18,879
Transfers out:
General Fund (20,000) (80,000)
Change in net assets (34,977) (61,121)
Net assets-January 1 114,342 175,463
Net assets- December 31 $79,365 $114,342
122
Exhibit E-6
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND -EMPLOYEE BENEFITS FUND
STATEMENT OF CASH FLOWS
For The Year Ended December 31,2003
With comparative amounts for year ended December 31, 2002
2003 2002
Cash flows from operating activities:
Receipts from interfund services provided $ - $72,071
Payment to suppliers (3,068) -
Payment to employees (26,604) -
Net cash flows from operating activities (29,672) 72,071
Cash flows from noncapital financing activities:
Transfers to General Fund (20,000) (80,000)
Cash flows from investing activities:
Investment income 16,957 26,617
Net increase (decrease) in cash and cash equivalents (32,715) 18,688
Cash and cash equivalents-January 1 1,028,979 1,010,291
Cash and cash equivalents -December 31 $996,264 $1,028,979
Reconciliation of operating income (loss)to net cash
provided (used) by operating activities:
Operating income (loss) ($31,934) ($7,738)
Adjustments to reconcile operating income(loss)
to net cash flows from operating activities:
Changes in assets and liabilities:
Increase (decrease) in payables 2,262 79,809
Total adjustments 2,262 79,809
Net cash provided by operating activities ($29,672) $72,071
123
Exhibit E-7
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND -SELF INSURANCE FUND
STATEMENT OF NET ASSETS
December 31, 2003
With comparative amounts for December 31, 2002
2003 2002
Assets:
Current assets:
Cash and investments $1,979,271 $2,070,870
Accounts receivable - 740
Due from component unit - 274
Total assets 1,979,271 2,071,884
Liabilities:
Current liabilities:
Accounts payable 578 54,964
Net assets:
Unrestricted 1,978,693 2,016,920
Total net assets $1,978,693 $2,016,920
124
Exhibit E-8
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND -SELF INSURANCE FUND
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS
For The Year Ended December 31, 2003
With comparative amounts for year ended December 31, 2002
2003 2002
Operating revenues:
Charges for services $ - $168,567
Insurance and other reimbursements - 11,458
Total operating revenues 0 180,025
Operating expenses:
Personal services 11,970 -
Supplies and other charges 58,663 122,045
Total operating expenses 70,633 122,045
Operating income(loss) (70,633) 57,980
Nonoperating revenues:
Investment income 32,406 52,094
r
Change in net assets (38,227) 110,074
Net assets-January 1 2,016,920 1,906,846
Net assets- December 31 $1,978,693 $2,016,920
125
Exhibit E-9
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND -SELF INSURANCE FUND
STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2003
With comparative amounts for year ended December 31, 2002
2003 2002
Cash flows from operating activities:
Receipts from interfund services provided $740 $206,507
Receipts from component units 274 -
Payment to suppliers (125,019) (125,019)
Net cash flows from operating activities (124,005) 81,488
Cash flows from investing activities:
Investment income 32,406 52,094
Net increase (decrease) in cash and cash equivalents (91,599) 133,582
Cash and cash equivalents-January 1 2,070,870 1,937,288
Cash and cash equivalents- December 31 $1,979,271 $2,070,870
Reconciliation of operating income (loss)to net cash
provided (used)by operating activities:
Operating income (loss) ($70,633) $57,980
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Changes in assets and liabilities:
Decrease (increase)in receivables 1,014 38,657
Increase (decrease) in payables (54,386) (15,149)
Total adjustments (53,372) 23,508
Net cash provided by operating activities ($124,005) $81,488
126
Exhibit E-10
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND -INFORMATION SYSTEMS FUND
STATEMENT OF NET ASSETS
December 31,2003
With comparative amounts for December 31, 2002
2003 2002
Assets:
Current assets:
Cash and investments $735,137 $721,097
Capital assets, at cost:
Property and equipment 1,226,685 1,140,240
Less: accumulated depreciation (810,820) (677,815)
Net capital assets 415,865 462,425
Total assets 1,151,002 1,183,522
Liabilities:
Current liabilities:
Accounts payable _ 13 31,097
Net assets:
Invested in capital assets, net of related debt 415,865 462,425
Unrestricted 736,124 690,000
Total net assets $1,151,989 $1,152,425
127
Exhibit E-11
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND -INFORMATION SYSTEMS FUND
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS
For The Year Ended December 31, 2003
With comparative amounts for the year ended December 31, 2002
2003 2002
Operating revenues:
Charges for services $158,202 $173,992
Insurance and other reimbursements - 32,715
Total operating revenues 158,202 206,707
Operating expenses:
Supplies and other charges - 71,666
Depreciation 171,299 124,991
Total operating expenses 171,299 196,657
Operating income(loss) (13,097) 10,050
Nonoperating revenues:
Investment income 11,661 17,918
Income (loss)before transfers (1,436) 27,968
Transfers in:
General Fund - 21,441
Grant Management Special Revenue Fund - 72,202
Drug and Gambling Forfeiture Special Revenue Fund - 2,679
Total transfers in 0 96,322
Change in net assets (1,436) 124,290
Net assets-January 1 1,152,425 1,028,135
Net assets- December 31 $1,150,989 $1,152,425
128
Exhibit E-12
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUND -INFORMATION SYSTEMS FUND
STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2003
With comparative amounts for year ended December 31,2002
2003 2002
Cash flows from operating activities:
Receipts from interfund services provided $158,202 $210,997
Payment to suppliers (31,084) (45,788)
Net cash flows from operating activities 127,118 165,209
Cash flows from noncapital financing activities:
Transfers in - 96,322
Cash flows from capital and related
financing activities:
Acquisition of capital assets (124,739) (243,057)
Cash flows from investing activities:
Investment income 11,661 17,918
Net increase (decrease) in cash and cash equivalents 14,040 36,392
Cash and cash equivalents-January 1 721,097 684,705
Cash and cash equivalents- December 31 $735,137 $721,097
Reconciliation of operating income (loss)to net cash
provided (used) by operating activities:
Operating income(loss) ($13,097) $10,050
Adjustments to reconcile operating income(loss)
to net cash flows from operating activities:
Depreciation 171,299 124,991
Changes in assets and liabilities:
Decrease (increase)in receivables - 4,290
Increase (decrease) in payables (31,084) 25,878
Total adjustments 140,215 155,159
Net cash provided by operating activities $127,118 $165,209
129
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130
HOUSING AND REDEVELOPMENT AUTHORITY
COMPONENT UNIT
131
CITY OF FRIDLEY, MINNESOTA
BALANCE SHEET-GOVERNMENTAL FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
December 31,2003
North Areal
Revolving Univ. Ind.
General Loan Park
Assets
Cash and investments $6,267,441 $3,414,973 $1,288,799
Cash with escrow agent - - 135,106
Receivables:
Accounts 67,434 - -
Interest 29,550 - -
Taxes:
Unremitted 5,171 - 110,137
Delinquent 3,668 - 46,955
Mortgage:
Deferred - 754,939 56,429
Allowance for uncollectible accounts - (29,000) -
Due from other governments - - -
Due from primary government - - -
Due from other funds 2,880,393 - -
Land held for resale - - 192,000
Total assets $9,253,657 $4,140,912 $1,829,426
Liabilities and Fund Balance
Liabilities:
Accounts payable $7,237 $ - $2,097
Due to primary government 52,492 - 718
Due to other funds - - -
Salaries payable 5,253 - -
Deferred revenue 3,667 - 238,955
Loan payable to primary government - 599,420 -
Total liabilities 68,649 599,420 241,770
Fund balance:
Reserved for debt service 3,000,000 - 281,746
Reserved for mortgage receivable - 754,939 56,429
Unreserved, undesignated 6,185,008 2,786,553 1,249,481
Total fund balance 9,185,008 3,541,492 1,587,656 !
I
Total liabilities and fund balance $9,253,657 $4,140,912 $1,829,426
132
Exhibit F-1
Other Total
Lake Gateway Gateway Governmental Governmental
Pointe East West Funds Funds
$703,358 $39,883 $ - $3,300,266 $15,014,720
- 135,106
_ _
_ - 67,434
-
- - - 29,550
8,716 - - 15,437 139,461
1,909 355 - 13,352 66,239
- - - 81,060 892,428
- - - (600) (29,600)
- - 191,559 - 191,559
- - - 2,880,393
50,000 - 533,000 180,000 955,000
$763,983 $40,238 $724,559 $3,589,515 $20,342,290
■
$608,298 $895 $6,620 $18,088 $643,235
3,889 688 679 6,267 64,733
1,080,303 1,062,653 612,677 124,760 2,880,393
- - - - 5,253
51,909 355 533,000 193,352 1,021,238
- - - 599,420
1,744,399 1,064,591 1,152,976 342,467 5,214,272
- - - - 3,281,746
' - - - 81,060 892,428
(980,416) (1,024,353) (428,417) 3,165,988 10,953,844
(980,416) (1,024,353) 428,4171 3,247,048 15,128,018
$763,983 $40,238 $724,559 $3,589,515 $20,342,290
133
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, 2003
North Area/ ,
Revolving Univ. Ind.
General Loan Park
Revenues:
Tax increment $ - $ - $896,160
Property taxes 239,382 - - '
Investment income 84,450 44,977 21,878
Intergovernmental revenue 31,807 - -
Mortgage interest earnings 7,000 56,216 -
Rental 9,600 - -
Sale of real estate 135,837 - -
Miscellaneous 7,775 - -
Receipt from primary government 88,822 - -
Total revenues 604,673 101,193 918,038
Expenditures:
Personal services 90,318 - -
Supplies and other charges 218,244 8,556 6,603
Capital outlay - - -
Developer assistance - - 93,829
Interest expense - 32,056 -
Payment to primary government - - _ 1,141,559
Total expenditures 308,562 40,612 1,241,991
Excess (deficiency)of revenues over
expenditures 296,111 60,581 (323,953)
Other financing sources (uses):
Transfers in 57,256 87,429 -
Transfers out (87,429) (2,506) (1,121)
Total other financing sources (uses) (30,173) 84,923 (1,121)
I
Excess (deficiency)of revenues and
other financing sources over(under)
expenditures and other financing uses 265,938 145,504 (325,074)
Fund balance-January 1 8,919,070 3,395,988 1,912,730
Fund balance- December 31 $9,185,008 $3,541,492 $1,587,656
134
Exhibit F-2
i
Other Total
Lake Gateway Gateway Governmental Governmental
Pointe East West Funds Funds
$1,353,665 $2,471 $ - $1,374,943 $3,627,239
- - - - 239,382
8,976 426 - 38,416 199,123
- - 1,785 - 39,630 73,222
- - - 980 64,196
` - - - - 9,600
- - - 135,837
r - - 2,555 - 10,330
- - 191,559 - 280,381
1,362,641 4,682 194,114 1,453,969 4,639,310
- - - - 90,318
12,007 3,511 47,383 54,373 350,677
15,900 - 571,335 - 587,235
1,222,653 - - 229,783 1,546,265
- - - - 32,056
- - - 494,732 1,636,291
1,250,560 3,511 618,718 778,888 4,242,842
112,081 1,171 (424,604) 675,081 396,468
- - - 144,685
(389) (13) - (53,227) (144,685)
(389) (13) 0 (53,227) 0
111,692 1,158 (424,604) 621,854 396,468
(1,092,108) (1,025,511) (3,813) 2,625,194 14,731,550
($980,416) ($1,024,353) ($428,417) $3,247,048 $15,128,018
_ l
135
Exhibit F-3
CITY OF FRIDLEY, MINNESOTA
COMBINING BALANCE SHEET -HOUSING AND REDEVELOPMENT AUTHORITY
NONMAJOR GOVERMENTAL FUNDS
December 31, 2003
Special Totals
Revenue/ Nonmajor
Housing Capital Governmental
Programs Projects Funds
Assets
Cash and investments $7,637 $3,292,629 $3,300,266
Receivables:
Taxes:
Unremitted - 15,437 15,437
Delinquent - 13,352 13,352
Mortgage:
Deferred 13,356 67,704 81,060
Allowance for uncollectible accounts (600) - (600)
Land held for resale - 180,000 180,000
Total assets $20,393 $3,569,122 $3,589,515
Liabilities and Fund Balance
Liabilities:
Accounts payable $4,252 $13,836 $18,088
Due to primary government - 6,267 6,267
Due to other funds - 124,760 124,760
Deferred revenue - 193,352 193,352
Total liabilities 4,252 338,215 342,467
Fund balance:
Reserved for mortgage receivable 13,356 67,704 81,060
Unreserved, undesignated 2,785 3,163,203 3,165,988
Total fund balance 16,141 3,230,907 3,247,048
Total liabilities and fund balance $20,393 $3,569,122 $3,589,515
136
Exhibit F-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 31,2003
Special Totals
Revenue/ Nonmajor
Housing Capital Governmental
Programs Projects Funds
Revenues:
•
Tax increment $ - $1,374,943 $1,374,943
Investment income 33 38,383 38,416
Intergovernmental revenue - 39,630 39,630
Mortgage interest earnings 474 506 980
Total revenues 507 1,453,462 1,453,969
Expenditures:
Supplies and other charges 15,853 38,520 54,373
Developer assistance - 229,783 229,783
Payment to primary government - 494,732 494,732
Total expenditures 15,853 763,035 778,888
Excess (deficiency)of revenues over
expenditures (15,346) 690,427 675,081
Other financing sources (uses):
Transfers out (5) (53,222) L53,227)
Excess(deficiency)of revenues and
other financing sources over(under)
expenditures and other financing uses (15,351) 637,205 621,854
Fund balance-January 1 31,492 2,593,702 2,625,194
Fund balance- December 31 $16,141 $3,230,907 $3,247,048
137
h
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
December 31, 2003
Center Moore
City Lake Area Winfield Onan
Assets
Cash and investments $265,243 $1,242,187 $342,970 $498,000
Receivables:
Taxes:
■
Unremitted 3,378 8,937 8 643
Delinquent 6,842 4,074 46 2,308
Mortgage: -
Deferred - 7,236 - -
Land held for resale - 105,000 - -
Total assets $275,463 $1,367,434 $343,024 $500,951
Liabilities and Fund Balance
Liabilities:
Accounts payable $ - $2,220 $537 $1,088
Due to primary government - 688 688 718
Due to other funds - - - -
Deferred revenue 6,842 109,074 46 2,308
Total liabilities 6,842 111,982 1,271 4,114
f
Fund balance (deficit):
Reserved for mortgage receivable - 7,236 - -
Unreserved, undesignated 268,621 1,248,216 341,753 496,837
Total fund balance (deficit) 268,621 1,255,452 341,753 496,837
Total liabilities and fund balance $275,463 $1,367,434 $343,024 $500,951
138
Exhibit F-5
Total
Nonmajor
Capital
University/ McGlynn Satellite Business 57th Avenue Housing Project
Osborne Bakeries Lane Apts. Center Redevelopment Replace. #1 Funds
$134,359 $65,078 $185,944 $405,238 $6,289 $147,321 $3,292,629
- - 1,242 9 - 1,220 15,437
- - - 81 - 1 13,352
- - - 60,468 - - 67,704
- - - - - 75,000 180,000
$134,359 $65,078 $187,186 $465,796 $6,289 $223,542 $3,569,122
$944 $1,159 $853 $537 $5,740 $758 $13,836
703 703 688 688 703 688 6,267
- - - - 124,760 - 124,760
- - - 81 - 75,001 193,352
1,647 1,862 1,541 1,306 131,203 76,447 338,215
- - - 60,468 - - 67,704
132,712 63,216 185,645 404,022 (124,914) 147,095 3,163,203
132,712 63,216 185,645 464,490 (124,914) 147,095 3,230,907
$134,359 $65,078 $187,186 $465,796 $6,289 $223,542 $3,569,122
I
139
CITY OF FRIDLEY, MINNESOTA �„
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES s
AND CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
For The Year Ended December 31, 2003
Center Moore
City Lake Area Winfield Onan
Revenues:
Tax increment $343,058 $387,408 $34,011 $435,693
Investment income - 15,507 4,529 6,260
Intergovernmental revenue 16,735 14,545 - -
Mortgage interest earnings - 506 - -
Total revenues 359,793 417,966 38,540 441,953
Expenditures:
Supplies and other charges - 6,600 2,527 4,101 -
Developer assistance - - - 174,217
Payment to primary government 494,732 - - -
Total expenditures 494,732 6,600 2,527 178,318
Excess (deficiency)of
revenues over(under)expenditures (134,939) 411,366 36,013 263,635
Other financing sources (uses):
Transfers out - (859) (268) (303) I
Excess (deficiency)of revenues
and other financing sources
over(under)expenditures and other
financing uses (134,939) 410,507 35,745 263,332
Fund balance (deficit)-January 1 403,560 844,945 306,008 233,505
Fund balance (deficit)- December 31 $268,621 $1,255,452 $341,753 $496,837
1
140
Exhibit F-6
Total
Nonmajor
Capital
University/ McGlynn Satellite Business Commercial 57th Avenue Housing Project
Osborne Bakeries Lane Apts. Center Railway Redevelopment Replace.#1 Funds
$27,255 $39,787 $33,343 $43,555 $ - $14,616 $16,217 $1,374,943
1,747 494 2,464 5,395 - 63 1,924 38,383
- - 5,547 - - - 2,803 39,630
- - - - - - - 506
29,002 40,281 41,354 48,950 0 14,679 20,944 1,453,462
3,289 3,494 3,123 2,655 - 7,915 4,816 38,520
5,783 37,953 - - - 11,830 - 229,783
- - - - - - - 494,732
9,072 41,447 3,123 2,655 0 19,745 4,816 763,035
19,930 (1,166) 38,231 46,295 0 (5,066) 16,128 690,427
(102) (54) (138) (308) (51,071) (5) (114) (53,222)
it
19,828 (1,220) 38,093 45,987 (51,071) (5,071) 16,014 637,205
112,884 64,436 147,552 418,503 51,071 (119,843) 131,081 2,593,702
$132,712 $63,216 $185,645 $464,490 $0 ($124,914) $147,095 $3,230,907
141
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I
142
CAPITAL ASSETS USED IN THE
OPERATION OF GOVERNMENTAL FUNDS
143
CITY OF FRIDLEY, MINNESOTA
SCHEDULE OF CAPITAL ASSETS USED IN THE OPERATION
OF GOVERNMENTAL FUNDS
SCHEDULE BY SOURCE
For The Year Ended December 31, 2003
Balance
January 1,
2003 Restate
As Previously for
Description Reported Infrastructure
Land $2,842,282 $ -
Buildings 7,179,235 -
Improvements other than buildings 26,455,604 (22,823,710)
Machinery and equipment 5,870,206 -
Infrastructure - 23,856,686
Construction in progress - -
Totals $42,347,327 $1,032,976
Investments in Capital Assets from:
General Fund
Special Revenue Funds
Capital Projects Funds
Federal Grant Revenues
Donations
Total investments in capital assets
144
Exhibit G-1
Balance
January 1,
2003 Balance
As December 31,
Restated Additions Deletions Adjustments 2003
$2,842,282 $1,800 $ - ($20,066) $2,824,016
7,179,235 606,653 - (12,577) 7,773,311
3,631,894 114,005 - 20,066 3,765,965
5,870,206 334,189 250,252 12,577 5,966,720
23,856,686 25,484 153,199 - 23,728,971
659,566 - - 659,566
$43,380,303 $1,741,697 $403,451 $0 $44,718,549
$4,268,261
622,740
39,598,676
160,322
68,550
$44,718,549
145
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146
Exhibit G-2
CITY OF FRIDLEY,MINNESOTA
CAPITAL ASSETS USED IN THE OPERATION
OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTIVITY
December 31,2003
Improvements Machinery
Other Than and Construction
Function and Activity Land Buildings Buildings Equipment Infrastructure In Progress Total
General government:
City management $ - $ - $ - $102,477 $ - $ - $102,477
Finance - - - 142,381 - - 142,381
Municipal center 17,496 2,825,908 242,662 647,199 - - 3,733,265
Total general government 17,496 2,825,908 242,662 892,057 0 0 3,978,123
Public safety:
Police protection - - 194,717 763,120 - - 957,837
Fire protection 45,092 707,728 53,564 1,319,795 - - 2,126,179
Total public safety 45,092 707,728 248,281 2,082,915 0 0 3,084,016
Public works 2,453,602 1,811,505 2,833,780 2,791,698 23,728,971 - 33,619,556
Recreation/naturalist 307,826 2,428,170 441,242 169,666 - - 3,346,904
Community development - - - 30,384 - - 30,384
Construction in progress - - - - - 659,566 659,566
Totals $2,824,016 $7,773,311 $3,765,965 $5,966,720 $23,728,971 $659,566 $44,718,549
147
CITY OF FRIDLEY, MINNESOTA
CAPITAL ASSETS USED IN THE OPERATION
OF GOVERNMENTAL FUNDS
SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY
For The Year Ended December 31, 2003
Balance
January 1,
2003 Restate
As Previously for
Function and Activity Reported Infrastructure
General government:
City management $102,477 $ -
Finance 136,417 -
Municipal center 3,733,265 -
Total general government 3,972,159 0
Public safety:
Police protection 933,119 -
Fire protection 2,121,178 -
Total public safety 3,054,297 0
Public works 31,926,882 1,032,976
Recreation/naturalist 3,346,904 -
Community development 47,085 -
Construction in progress - -
Totals $42,347,327 $1,032,976
148
Exhibit G-3
Balance
January 1,
2003 Balance
As December 31,
Restated Additions Deletions 2003
$102,477 $ - $ - $102,477
136,417 19,726 13,762 142,381
3,733,265 - - 3,733,265
3,972,159 19,726 13,762 3,978,123
933,119 106,441 81,723 957,837
2,121,178 5,001 - 2,126,179
3,054,297 111,442 81,723 3,084,016
32,959,858 950,963 291,265 33,619,556
3,346,904 - - 3,346,904
47,085 - 16,701 30,384
- 659,566 - 659,566
$43,380,303 $1,741,697 $403,451 $44,718,549
149
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150
III. STATISTICAL SECTION (UNAUDITED)
151
CITY OF FRIDLEY, MINNESOTA
GOVERNMENT-WIDE EXPENSES BY FUNCTION
2003
(UNAUDITED)
Fiscal General Public Public Community
Year* Government Safety Works Development
2003 $3,944,682 $5,166,975 $3,749,412 $939,918
*Government-wide expenses are not available for years prior to 2003.
152
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
153
CITY OF FRIDLEY, MINNESOTA
GOVERNMENT-WIDE REVENUES
2003
(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
*Government-wide revenues are not available for years prior to 2003.
154
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
155
Table 3
CITY OF FRIDLEY, MINNESOTA
GENERAL GOVERNMENT EXPENDITURES BY FUNCTION(')
LAST TEN FISCAL YEARS
(UNAUDITED)
Fiscal General Public Public Community Recreation/ Debt
Year Government Safety Works Development Naturalist Service Total
1994 $3,206,942 $3,552,812 $2,473,128 $462,615 $780,242 $3,495,789 $13,971,528
1995 3,954,875 3,821,230 2,375,472 530,230 850,329 5,636,711 17,168,847
1996 (2) 2,145,143 3,863,105 2,306,088 535,496 759,457 1,102,010 10,711,299
1997 2,488,576 4,109,283 2,625,869 572,817 813,356 10,635,507 21,245,408
1998 2,585,108 4,098,048 2,826,545 648,842 902,159 5,141,866 16,202,568
1999 2,585,352 4,243,682 2,879,627 721,120 996,584 1,029,680 12,456,045
2000 2,888,061 4,392,025 2,661,927 775,312 1,031,174 1,058,772 12,807,271
2001 3,004,384 4,467,947 2,863,228 708,749 1,106,058 1,844,640 13,995,006
2002 3,262,437 4,905,475 3,065,570 710,780 1,139,351 1,836,471 14,920,084
2003 3,569,952 4,925,525 2,712,421 742,592 1,068,875 1,810,100 14,829,465
(')Includes General, Special Revenue, Capital Projects, Debt Service and Expendable Trust Funds and excludes
capital outlay.
(2)Prior to 1996, the HRA was included as a blended component unit of the City.
156
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
1994 $6,915,475 $528,111 $3,808,828 $1,038,863 $2,393,463 $14,684,740
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 4,312,005 792,622 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 3,883,464 1,500,429 2,602,101 14,484,472
(1)Includes General, Special Revenue, Capital Projects, Debt Service and Expendable Trust Funds.
(2)Prior to 1996, the HRA was included as a blended component unit of the City.
157
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158
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(1)(2) Collected Taxes Collections Tax Levy Taxes
1994 $3,678,665 $3,578,604 97.28% $6,764 $3,585,368 0.9746 :1 $32,416 (3)
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 (4) 98.92% 40,780 5,803,877 0.9962 :1 80,324
(1)For years prior to 1994, the tax levy and collections include Homestead and Agricultural Aid Credit
(HACA). Beginning in 1994, state law required the City to certify its tax levy after subtracting HACA.
(2)Excludes collections from properties pledged to tax increment.
(3)Taxes were adjusted $105,234 by Anoka County due to abatements, court ordered settlements and
corrections of prior errors by the County.
(4)Current tax collections include the market value homestead credit(MVHC).
159
CITY OF FRIDLEY, MINNESOTA
ESTIMATED MARKET VALUE AND TAXABLE VALUE OF ALL PROPERTY
LAST TEN FISCAL YEARS
(UNAUDITED)
Fiscal year payable 1994 1995 1996 1997
Assessment year 1993(1) 1994(1) 1995(1) 1996('
Population, fiscal year 28,104 28,204 28,267 28,419
Real property:
Estimated market value $1,068,474,200 $1,090,023,902 $1,120,412,065 $1,152,674,700
Taxable value:
Homestead $7,008,373 $7,374,709 $7,784,740 $8,199,059
Excess and nonhomestead 19,250,219 19,253,892 19,554,250 20,139,316
Less fiscal disparities contribution (5,000,902) (4,946,278) (4,974,987) (5,147,086)
Less tax increment value (2,581,487) (2,642,692) (2,692,879) (2,760,628)
Taxable value $18,676,203 $19,039,631 $19,671,124 $20,430,661
Personal property:
Estimated market value $23,308,700 $19,952,700 $19,576,200 $19,576,200
Taxable value 1 071 329 916 94
$1,071,329 $ 0 $916,940 $916,940
Totals:
Estimated market value $1,091,782,900 $1,109,976,602 $1,139,988,265 $1,172,250,900
Taxable value $19,747,532 $19,956,571 $20,588,064 $21,347,601
Per market value ratios:
Taxable value .018:1 .018:1 .018:1 .018:1
Per capita valuations:
Estimated market value $38,848 $39,355 $40,329 $41,249
Taxable value $703 $708 $728 $751
1
Real property:
Taxable value
Fiscal disparities distribution $3,349,769 $2,827,323 $3,007,783 $3,222,432
Notes:
(1)The Minnesota Legislature enacted legislation which changed the method of computing property taxes in I
1988, 1989, 1990 and 1993. Those changes have been reflected in the computation of the taxable value for taxes
payable in 1989 through 2003.
(2)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, 2002 upon which the 2003 levy was based was$17,617,771.
160
Table 6
1998 1999 2000 2001 2002 2003
1997(1) 1998(1) 1999(1) 2000(1) 2001(1) 2002(1)(2)
28,335 28,623 27,449 27,854 27,877 27,460
$1,209,684,500 $1,274,348,500 $1,316,382,300 $1,499,258,100 $1,669,007,700 $1,938,795,600
$8,307,553 $8,556,633 $9,152,661 $10,201,895 $9,026,662 $9,962,555
18,039,448 16,302,168 16,814,763 19,002,890 12,973,031 14,662,701
(4,685,134) (4,337,632) (4,312,759) (4,769,074) (3,223,214) (3,579,128)
(2,638,263) (2,381,402) (2,475,455) (3,272,618) (2,552,353) (3,810,890)
$19,023,604 $18,139,767 $19,179,210 $21,163,093 $16,224,126 $17,235,238
$19,164,700 $19,315,800 $19,160,600 $19,089,700 $19,133,400 $19,225,500
$766,322 $673,798 $668,384 $645,895 $360,466 $382,533
$1,228,849,200 $1,293,664,300 $1,335,542,900 $1,518,347,800 $1,688,141,100 $1,958,021,100
$19,789,926 $18,813,565 $19,847,594 $21,808,988 $16,584,592 $17,617,771
.015:1 .015:1 .015:1 .014:1 .010:1 .010:1
$43,369 $45,197 $48,655 $54,511 $60,557 $71,304
$698 $657 $723 $783 $595 $642
$3,116,450 $2,941,279 $3,355,535 $3,677,471 $2,278,406 $2,572,562
1 61
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162
Table 7
CITY OF FRIDLEY, MINNESOTA
SIGNIFICANT MINNESOTA TAX POLICIES
December 31,2003
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 2003
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%
Property 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.
163
CITY OF FRIDLEY, MINNESOTA
TAX CAPACITY RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
(UNAUDITED)
1
School School School School
Fiscal District District District District
Year City No. 11 No. 13 No. 14 No. 16(1)
1994 16.005% 57.161% 69.161% 60.840% 53.355%
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%
Notes:
(1)Vocational/Technical District#916 is included in District No. 16.
(2)Six Cities Watershed District is included with School District No. 11.
(3)Rice Creek Watershed District is included with School District No. 13, 14 and 16.
(4)Stonybrook Creek Subwatershed is included with School District No. 11 and 14.
164
Table 8
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)
32.680% 5.452% 110.879% 123.277% 114.956% 108.899%
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%
l
■
165
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166
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
1994 $581,591 $536,450 92.24% $31,201 $567,651 97.60% $118,994
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
2003 418,432 398,545 95.25% 32,364 430,909 102.98% 26,530
167
CITY OF FRIDLEY, MINNESOTA
HISTORY OF CERTIFIED TAX LEVIES AND TAX RATES
LAST TEN FISCAL YEARS
(UNAUDITED)
1994(1) 1995(1) 1996(1)
Certified tax levies:
General Fund $3,603,266 $3,592,295 $3,821,853
Capital Improvement Fund 72,689 72,689 72,689
Subtotal 3,675,955 3,664,984 3,894,542
Enterprise Fund - - -
Agency Fund 2,710 2,702 3,087
Total $3,678,665 $3,667,686 $3,897,629
Tax Capacity Rate
General Fund 15.076% 15.778% 16.258%
Capital Improvement Fund 0.314% 0.320% 0.307%
Enterprise Fund 0.000% 0.000% 0.000%
Subtotal 15.390% 16.098% 16.565%
Agency Fund 0.022% 0.022% 0.024%
Total 15.412% 16.120% 16.589%
Notes:
(')Beginning in 1994, the State law required the City to certify its tax levy after subtracting Homestead and
Agricultural Aid Credit(HACA).
(2)For 2002 the levy includes the market value homestead credit(MVHC).
168
Table 10
1997(1) 1998(1) 1999(1) 2000(1) 2001(1) 2002(1) 2003(2)
I
$3,806,950 $3,921,159 $3,947,133 $3,947,882 $4,117,233 $5,507,313 $5,717,783
72,689 72,689 72,689 72,689 72,667 90,719 92,972
3,879,639 3,993,848 4,019,822 4,020,571 4,189,900 5,598,032 5,810,755
8,900 8,900 8,900 8,900 8,900 8,900 8,900
3,073 7,822 6,197 6,200 6,200 6,200 6,200
$3,891,612 $4,010,570 $4,034,919 $4,035,671 $4,205,000 $5,613,132 $5,825,855
15.399% 16.807% 17.995% 16.761% 16.049% 29.421% 28.152%
0.294% 0.312% 0.331% 0.309% 0.283% 0.485% 0.464%
0.625% 0.516% 0.687% 0.613% 0.534% 0.762% 0.734%
16.318% 17.635% 19.013% 17.683% 16.866% 30.668% 29.350%
0.023% 0.067% 0.049% 0.045% 0.043% 0.059% 0.057%
16.341% 17.702% 19.062% 17.728% 16.909% 30.727% 29.407%
169
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170
V
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
1994 28,104 $19,747,532 $19,600,000 $ - $19,600,000 $ - $ - $ -
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 - - -
■
i
171
Table 12
Page 1 of 2
CITY OF FRIDLEY, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
December 31,2003
(UNAUDITED)
Market Value $1,938,795,600
(A)Debt Limit 2%of Market Value $38,775,912
Amount of Debt Applicable to Debt Limit:
Total Debt $13,820,000
(B)Deductions:
Tax Increment Redevelopment Bonds $10,705,000
Special Assessment Bonds 315,000
Revenue Bonds 2,800,000 13,820,000
Total Amount of Debt Applicable to Debt Limit -0-
Legal Debt Margin $38,775,912
Notes:
(A)M.S.A. Section 475.53 (see following page)
(B)M.S.A. Section 475.51 (see following page)
172
Table 12
Page 2 of 2
CITY OF FRIDLEY MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED)
YEAR ENDED DECEMBER 31,2003
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.
173
Table 13
CITY OF FRIDLEY, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING
BONDED DEBT AND COMPARATIVE DEBT RATIOS
December 31, 2003
(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 I
Direct&overlapping debt:
Direct debt:
City of Fridley $13,820,000 $5,887,336 $7,932,664 100.00% $7,932,664 $289
i
Overlapping debt:
School Districts:
No. 11 198,623,637 13,406,816 185,216,821 1.60% 2,963,469 108
No. 14 16,800,000 76,000 16,724,000 100.00% 16,724,000 609
No. 16 26,015,000 2,178,841 23,836,159 36.80% 8,771,707 319
Metro Council 858,440,429 96,119,118 762,321,311 1.19% 9,071,624 330
Anoka County 84,195,000 10,971,289 73,223,711 18.04% 13,209,557 481
Vocational/Technical
District No. 916 15,965,000 396,836 15,568,164 2.21% 344,056 13
Overlapping debt 1,200,039,066 123,148,900 1,076,890,166 51,084,413 1,860
Total direct and
overlapping debt $1,213,859,066 $129,036,236 $1,084,822,830 $59,017,077 $2,149
174
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
1994 (2) $2,305,000 $1,147,551 $3,452,551 $14,151,632 .2440:1
1995 (2) 4,530,000 1,079,838 5,609,838 17,364,796 .3231:1
1996 (2) 175,000 896,011 1,071,011 10,897,216 .0983:1
1997 9,675,000 897,930 10,572,930 21,459,898 .4927:1
1998 4,310,000 796,329 5,106,329 16,408,048 .3112:1
1999 295,000 729,889 1,024,889 12,691,353 .0808:1
2000 14,455,000 753,063 15,208,063 13,032,385 1.1669:1
2001 13,350,000 737,471 14,087,471 14,236,668 .9895:1
2002 12,200,000 684,271 12,884,271 15,145,152 .8507:1
2003 11,020,000 627,899 11,647,899 14,814,303 .7863:1
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
175
Table 15
CITY OF FRIDLEY, MINNESOTA i
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
1994 $3,985,612 $4,534,059 ($548,447) $80,000 $127,301 $207,301 $ -
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 5,325,000 281,975 5,606,975 0.03
2000 5,150,374 4,965,373 185,001 3,880,000 197,277 4,077,277 0.05
2001 4,994,669 5,148,461 (153,792) 3,530,000 175,115 3,705,115 (0.04)
2002 5,016,233 5,251,371 (235,138) 3,170,000 158,422 3,328,422 (0.07)
2003 5,330,603 5,664,741 (334,138) 2,800,000 141,002 2,941,002 (0.11)
Notes:
°total operating revenue.
(2)Total operating expenses including depreciation.
176
Table 16
CITY OF FRIDLEY, MINNESOTA
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
(UNAUDITED)
Annual
Per Average
Fiscal Capita Median School Unemployment
Year Population(" Income) Age(4) Enrollment(5) Rates)
{
1994 28,104 $15,535 30.5 3,942 3.4%
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%
Notes:
(1 Estimated
(2)2000 Population Report- Bureau of the Census
(3)Maxfield Research
(4)1991 - 1994 amounts for Anoka County.
(5)Estimated -excludes Totino Grace Parochial High School, as it is not supported by property tax dollars.
(s)Minnesota Department of Economic Security-Twin Cities Labor Market
177
Table 17
CITY OF FRIDLEY, MINNESOTA
CONSTRUCTION AND PROPERTY VALUE
LAST TEN FISCAL YEARS
(UNAUDITED)
Commercial Construction Residential Construction
Number Number Estimated Market Value
Fiscal of of Taxable Non-
Year Units Value Units Value Property Taxable) Total
1994 115 $17,510,011 711 $6,365,829 $1,091,782,900 $191,559,200 $1,283,342,100
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
Note:
(')Non-taxable property is reevaluated by the city assessors every six years
178
1
Table 18
CITY OF FRIDLEY, MINNESOTA
PRINCIPAL TAXPAYERS
December 31, 2003
(UNAUDITED)
Fiscal Year 2003
Percent
2002 of Total
Taxable Taxable
Rank Taxpayer Type of Business Valuation Valuation
1 Medtronic, Inc. Electro-medical devices $105,772,000 5.40%
2 Target Corporation Target discount store,warehouse and office 36,908,300 1.88%
3 Shamrock Investments Murphy Warehouses 30,830,500 1.57%
4 University Avenue Associates Springbrook Apartments 18,700,000 0.96%
5 Maurice Fillister(Georgetown) Georgetown apartments 15,312,000 0.78%
6 Cummins Power(Onan) Portable electric generators 14,663,700 0.75%
7 Retail Trust IV(Wal-Mart/Sam's) Wal-Mart/Sam's Club discount stores 12,655,200 0.65%
8 Burlington Northern Railroad Operating property 12,502,200 0.64%
9 Riverpointe Apartments Riverpointe Apartments 12,444,600 0.64%
10 Northwest Racquet&Swim Club Health and Tennis Club 11,746,000 0.60%
Total $271,534,500 13.87%
179
Table 19
CITY OF FRIDLEY, MINNESOTA
INSURANCE COVERAGE
December 31, 2003
(UNAUDITED)
Municipal Property, Crime& Bond:
Property $30,511,111
Mobile Property(also refered to as Inland Marine).
Scheduled Over$25,000 10,501,816
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 29,316,369
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
180
Table 20
CITY OF FRIDLEY, MINNESOTA
MISCELLANEOUS STATISTICAL INFORMATION
December 31, 2003
(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 5, 2002
Registered voters 16,424
Number of votes cast 12,512
Percent(%)of registered voters voting 76.2%
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
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
181
Table 20
Continued
CITY OF FRIDLEY, MINNESOTA
MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED)
December 31, 2003
(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 8,274
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 8,283
Average daily flow(includes infiltration/inflow) 4.93 million gallons
182 �.
Table 20
Continued
CITY OF FRIDLEY, MINNESOTA
MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED)
December 31, 2003
(UNAUDITED)
Parks and recreation areas:
Developed 420 Acres
Undeveloped 262 Acres
Total 682 Acres
City and
County Parks Schools Total
Number of:
Hockey rinks 6 2 8
General skating rinks 10 3 13
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
183
Table 21
CITY OF FRIDLEY, MINNESOTA
GENERAL INFORMATION
December 31,2003
(UNAUDITED)
Location -Transportation
The City of Fridley, with a total land area of eleven square miles and an estimated population of 27,460, 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 158
certified personnel in the education of about 2,643 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 1181
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 2,800
United Defense Systems Pumps and naval ordinance 1,800
Onan Corporation Portable generators, electronic equipment 1,727
Unity Hospital Medical and surgical services 1,400
Target Discount department store 600
Minco Products Electronic devices 500
LaMaur Machinery and equipment wholesaler 400
Kurt Manufacturing Scientific research and development 350
Park Construction Highway, street and bridge construction 300
Parsons Electric Electric contractor 300
184