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1989 CAFR COMPREHENSIVE ANNUAL FINANCIAL REPORT 4 a C3 r 1 ,, , CITY OF FRIDLEY MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 1989 CITY OF FRIDLEY, MINNESOTA Comprehensive Annual Financial Report December 31, 1989 Prepared by: Department of Finance Richard D. Pribyl Director of Finance Julie M. Burt Assistant Finance Director —' CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1989 TABLE OF CONTENTS EXHIBIT PAGE INTRODUCTORY SECTION List of Elected and Appointed Officials 1 Organizational Structure 2 City Manager's Letter of Transmittal 3 Chief Executive Officer's Letter of Transmittal 5 Certificate of Achievement for Excellence in Financial Reporting 14 FINANCIAL SECTION Auditors' Opinion 15 General Purpose Financial Statements Combined Financial Statements - Overview Combined Balance Sheet - All Fund Types and Account Groups A-1 18 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds A-2 22 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General and Special Revenue Fund Types A-3 24 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types A-4 26 Combined Statement of Changes in Financial Position - All Proprietary Fund Types A-5 27 Notes to Financial Statements 28 Financial Statements of Individual Funds: General Fund: Comparative Balance Sheet B-1 61 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual B-2 62 —. Schedule of Revenues and Other Financing Sources - Budget and Actual B-3 63 _ Schedule of Expenditures and Other Financing Uses - Budget and Actual B-4 65 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1989 — TABLE OF CONTENTS (CONTINUED) EXHIBIT PAGE Special Revenue Funds: Combining Balance Sheet C-1 70 Combining Statement of Revenues, Expenditures and — Changes in Fund Balances C-2 72 Municipal State Aid Fund: -_ Comparative Balance Sheet C-3 74 Statement of Revenues, Expenditures and Changes —' in Fund Balance - Budget and Actual C-4 75 Cable TV Fund: — Comparative Balance Sheet C-5 76 ^ Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual C-6 77 Grant Management Fund: Comparative Balance Sheet C-7 78 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual C-8 79 ^ HRA Reimbursement Fund: Comparative Balance Sheet C-9 80 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual C-10 81 Debt Service Funds: Combining Balance Sheet D-1 83 Combining Statement of Revenues, Expenditures and Changes in Fund Balances D-2 84 Capital Projects Funds: Combining Balance Sheet E-1 86 Combining Statement of Revenues, Expenditures and Changes in Fund Balances E-2 88 CRY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1989 TABLE OF CONTENTS (CONTINUED) EXHIBIT PAGE Enterprise Funds: Combining Balance Sheet F-1 93 Combining Statement of Revenues, Expenses and Changes in Retained Earnings F-2 94 Combining Statement of Changes in Financial Position F-3 95 Liquor Fund: Comparative Balance Sheet F-4 96 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings F-5 97 Comparative Statement of Changes in Financial Position F-6 98 Public Utilities Fund: Comparative Balance Sheet F-7 99 MEN Comparative Statement of Revenues, Expenses and Changes in Retained Earnings F-8 100 Comparative Statement of Changes in Financial Position F-9 101 Internal Service Funds: Combining Balance Sheet G-1 104 Combining Statement of Revenues, Expenses and Changes in Retained Earnings G-2 106 Combining Statement of Changes in Financial Position G-3 108 Employee Benefits Fund: — Comparative Balance Sheet G-4 110 Comparative Statement of Revenues, Expenses and — Changes in Retained Earnings G-5 111 Comparative Statement of Changes in Financial Position G-6 112 Management Information Services Fund: Comparative Balance Sheet G-7 113 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings G-8 114 Comparative Statement of Changes in Financial Position G-9 115 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1989 TABLE OF CONTENTS (CONTINUED) — EXHIBIT PAGE Self Insurance Fund: Comparative Balance Sheet G-10 116 Comparative Statement of Revenues, Expenses and — Changes in Retained Earnings G-11 117 Comparative Statement of Changes in Financial Position G-12 118 — Trust and Agency Funds: Combining Balance Sheet H-1 119 Trust Fund Comparative Statement of Revenues, Expenditures and Changes in Fund Balance H-2 120 Agency Funds Combining Statement of Changes in Assets and Liabilities H-3 121 Statement of Changes in Assets and Liabilities for Individual Funds Six Cities Watershed H-4 122 Hotel/Motel H-4 122 Deferred Compensation H-5 123 General Fixed Assets: Comparative Statement of General Fixed Assets I-1 125 Schedule of General Fixed Assets - By Function and Activity 1-2 126 Schedule of Changes in General Fixed Assets - By Function 1-3 127 and Activity General Long-Term Debt: Comparative Statement of General Long-Term Debt J-1 129 SUPPLEMENTAL INFORMATION Independent Auditor's Report on Compliance with Requirements Applicable to Nonmajor Federal Financial Assistance Program Transactions 131 Independent Auditor's Report on the Internal Control Structure --, in Accordance with Government Auditing Standards 133 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1989 TABLE OF CONTENTS (CONTINUED) EXHIBIT PAGE SUPPLEMENTAL INFORMATION (Continued) Independent Auditor's Report on Internal Controls (Accounting and Administrative) Based on a Study and Evaluation Made as a Part of an Audit of the General Purpose Financial Statements and the Additional Tests Required by the Single Audit Act 137 Independent Auditor's Report on Supplementary Information - -. Schedule of Federal Financial Assistance 143 Schedule of Federal Financial Assistance K-1 145 Schedule of Assessed Valuation and Long-Term Debt for the Tax Increment Financing District K-2 146 Schedule of Sources and Uses of Public Funds for the Tax Increment Financing District K-3 147 STATISTICAL SECTION TABLE General Governmental Expenditures by Function - Last Ten Fiscal Years 1 149 General Revenues by Source - Last Ten Fiscal Years 2 150 ... Certified Property Tax Levies and Collections - Last Ten Fiscal Years 3 151 .. Assessed and Estimated Market Value of All Taxable Property - Last Ten Fiscal Years 4 152 Significant Minnesota Tax Policies 154 Property Tax Rates Per $1,000 of Assessed Value and Calculated Tax Levies - All Overlapping Governments - Last Ten Fiscal Years 5 156 Special Assessment Levies and Collections - Last Ten Fiscal Years 6 158 History of Certified Tax Levies and Actual Mill Rates - Last Ten Fiscal Years 7 160 Ratio of Net General Bonded Debt to Assessed Values and Net Bonded Debt Per Capita - Last Ten Fiscal Years 8 162 Computation of Legal Debt Margin 9 164 Computation of Direct and Overlapping Bonded Debt and ... Comparative Debt Ratios 10 166 Ratio of Annual Debt Service Expenditures for General —. Bonded Debt to Total General Government Expenditures - Last Ten Fiscal Years 11 167 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1989 _ TABLE OF CONTENTS (CONTINUED) TABLE PAGE STATISTICAL SECTION (Continued) Revenue Bond Coverage - Last Ten Fiscal Years 12 168 — Demographic Statistics - Last Ten Fiscal Years 13 169 Construction, Bank Deposits and Property Value - Last Ten Fiscal Years 14 170 Principal Taxpayers 15 171 Insurance Coverage 172 Miscellaneous Statistical Information 173 General Information 176 INTRODUCTORY SECTION Oft 4 Oft CITY OF FRIDLEY, MINNESOTA ELECTED AND APPOINTED OFFICIALS DECEMBER 31, 1989 ELECTED OFFICIALS Term of Office Expires December Mayor William J. Nee 1992 Councilmember At Large Nancy J. Jorgenson 1992 Councilmember, Ward I Steven E. Billings 1990 Councilmember,Ward II Dennis L. Schneider 1991 Councilmember,Ward III Edward J. Fitzpatrick 1990 Effective January 1990 Mayor William J. Nee 1989 Councilmember At Large Nancy J. Jorgenson 1989 Councilmember, Ward I Steven E. Billings 1990 Councilmember, Ward II Dennis L Schneider 1991 Councilmember,Ward Ill Edward J. Fitzpatrick 1990 APPOINTED OFFICIALS City Manager - William W. Burns City Attorney - Virgil C. Herrick Prosecuting Attorney - Carl J. Newquist Treasurer - Richard D. Pribyl City Clerk - Shirley A. Haapala Department Heads: Director of Finance - Richard D. Pribyl Director of Public Safety and Civil Defense Director - James P. Hill Fire Chief - Robert D. Aldrich Director of Public Works - John G. Flora Director of Recreation and Natural Resource - Jack G. Kirk Director of Community Development - John L Robertson Division Heads: Public Works Superintendent - Ralph S. Volkman Chief Building Official - Darrel G. Clark Planning Coordinator - Barbara J. Dacy Liquor Stores Manager - Kathleen L. Schmitz 1 CITY ADMINSTRATIVE ORGANIZATIONAL STRUCTURE 1989 Total Authorized Positions(127) CITY MANAGER(6) City Manager Asst to City Manager Administrative Assistant Management Assistant Administrative Secretary Clerk-Typist FINANCE(21) POLICE(44) FIRE(6) PUBLIC WORKS(38) RECREATION&NATURALIST(5) I COMMUNITY DEVELOPMENT(7) I Finance Director-Treasurer Assistant City Manager- Fire Chief Director of Public Works Director of Recreation&Nat Director of Community Devel-HRA MIS Technician Public Safety Director- Dep Fire Chief Oper Analyst Secretary Staff Accountant Civil Defense Director Captain Secretary CODE ENFORCEMENT(3) Acctg-Data Proc Clerk Secretary (2)Firefighter NATURALIST(2) Chief Bldg Official Receptionist-Lic CIk Dep Pub Safety Dir Clk Typist II ENGINEERING(3) Nat Res Coordinator Plumbing Inspector Lieutenant (Civil Defense) Asst Public Works Dir Interpretive Specialist Secretary ACCOUNTING(7) (3)Sergeant Engineering Tech Asst Finance Director (3)Corporal Engineering Aide-Admin RECREATION(1) PLANNING(3) Staff Accountant (24)Patrol Officer Program Supervisor Planning Coordinator Accounting Specialist Pub Sfty Projects Coor PW MAINTENANCE(32) Planning-Code Enf Clerk Utility Billing CIk (2)Crime Prey Spec Superintendant Code Enf Officer-Planning Asst General Accountant Office Supervisor Secretary Acctg-Data Proc Clk (2)Senior Office Asst Street Foreman Acctg-Data Proc CIk (4)Office Asst (3)Maint III Acctg-Data Proc CIk (2)Opr&Maint Spec (5)Maint II ASSESSING (2)Maint I Assessor Water Foreman Appraiser (1)Opr&Maint Spec Tax Assessment Clk (2)Maint II (1)Maint I CITY CLERK-RECORDS(2) Sewer Foreman City Clerk (2)Maint III Records Retention Spec (2)Maint I Park Foreman LIQUOR(4) (1)Maint III LQ Store Manager (2)Opr&Maint Spec Asst LO Store Manager (3)Maint II LO Store Clerk LQ Store Clerk 1 J J J 1 I I 1 1 1 I 1 I 1 I I 1 1 1 -- UTYOF FRIDLEY FRIDLEY MUNICIPAL CENTER•6431 UNIVERSITY AVE. N.E. FRIDLEY,MN 55432•(612)571-3450•FAX(612)571-1287 April 6, 1990 The Honorable Mayor and Members of the City Council City of Fridley Council Members: In accordance with the Charter, we hereby transmit the Comprehensive Annual Financial Report of the City of Fridley for the year ending December 31, 1989. The Report includes an excellent and comprehensive letter from Richard D.Pribyl, Director of Finance and Julie M.Burt,Assistant Finance Director,which provides a brief description of some of the activities the City is currently involved in. Also highlighted in the letter are some of the more important financial management practices employed by the City administrative staff. I would like to express my appreciation and commendation to them and the Finance Division staff for the manner in which the accounts are kept and the Report presented. I would also like to express appreciation for the commendable administrative financial management of the several departments and divisions by the respective department and division heads as revealed by this Report. Very truly yours, William W. Burns City Manager 3 - CITYOF FRIDLEY FRIDLEY MUNICIPAL CENTER•6431 UNIVERSITY AVE. N.E. FRIDLEY,MN 55432•(612)571-3450•FAX(612)571-1287 April 6, 1990 Mr. William W. Burns, City Manager Mayor William J. Nee and Council Members MEM Fridley, Minnesota 55432 Dear Mr. Burns, Mayor Nee and Council Members: The Comprehensive Annual Financial Report of the City of Fridley, Minnesota, for the fiscal year ending December 31, 1989, is submitted herewith: The organization, form, and contents of this report were prepared in accordance with the standards prescribed by the Government Finance Officers Association of the United States and Canada, the American Institute of Certified Public Accountants, the Governmental Accounting Standards Board, and the Minnesota State Auditor's Office. The Government Finance Officers Association awards Certificates of Achievement for Excellence in Financial Reporting to those governments whose annual financial reports are judged to conform substantially with high standards of public financial reporting including generally accepted accounting principles promulgated by the Governmental Accounting Standards Board. The City of Fridley was awarded a Certificate of Achievement for Excellence in Financial Reporting for its annual financial report for the fiscal year 1988. It is our belief that the accompanying fiscal year 1989 financial report continues to meet program standards and it will be submitted to the Government Finance Officers Association for review. This report was prepared by the City's finance staff and consists of four sections: Section I is the introductory section and contains the table of contents, letter of transmittal, and other appropriate material. Section II is the financial section and contains the auditors' opinion, the combined financial statements, notes to the financial statements, combining statements, individual fund statements, and account group statements. Section III is the supplemental information section which includes information regarding federal programs and tax increment financing activity. Section IV is the statistical section which includes the previous year's financial and non-financial data. 5 CITY OF FRIDLEY, MINNESOTA — 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 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 City's financial statements include all funds and account groups. Services provided by the City include police and fire protection; water and sanitary sewer utilities, the construction and maintenance of streets and infrastructure; recreational activities and cultural events. In addition to general government — activities, the City exercises or has the ability to exercise, oversight responsibility of the Fridley Housing and Redevelopment Authority, these activities are included in the reporting entity. However, the Fridley School Districts, the Fridley Police Relief Association and the Fridley Volunteer Firefighters Relief Association have not met the established criteria for inclusion in the reporting entity,and accordingly are excluded from — this report. — GENERAL INFORMATION BACKGROUND AND LOCATION The City of Fridley is an older metropolitan community with an estimated population of 29,250. The City is located just north of downtown Minneapolis and covers 11 square miles of area The City was — incorporated July 1, 1949 and is currently committed to redevelopment. With the help of the Housing and Redevelopment Authority, the City has been successful in attracting redevelopment projects in the past and for the future. -_ MAJOR INITIATIVES — During the year, the City of Fridley directed two major construction projects. First, remodeling was completed on City Hall, which has been renamed the Municipal Center. The original structure was built in 1965 and had not been expanded since. The project included revitalization of the attached fire station — and a 12,000 square foot addition. The new facilities provide us more efficient use of space and allow us to better serve the public. The second project was the construction of a second satellite fire station in the Northwest quadrant of the City. With a total of three strategically located facilities, fire services and response times should be balanced throughout the City. Internally,the City completed and expanded the Five Year Capital Improvement Program. Current trends of tighter levy limits and increased scrutiny of City reserves, make it imperative that the City evaluate its operations to attain the best utilization of its limited resources. We can achieve this goal through comprehensive planning and an annual evaluation of the program. Also, with the cooperation of eight Anoka County Cities, a joint powers agreement has been prepared for — the acquisition of the Unisys Election System-2000. Council approved the acquisition of the equipment to make voting faster and easier for everyone. The use of electronic voting equipment guarantees the accuracy, security and integrity of election results. We were also honored to receive the Distinguished Budget Presentation Award for our 1989 Budget. The 1990 budget will be submitted with the hope that this is the beginning of a new tradition. 6 CITY OF FRIDLEY, MINNESOTA — GENERAL INFORMATION (CONTINUED) MAJOR INITIATIVES (CONTINUED) Another major issue for all levels of government but especially local units is solid waste. Fridley has been active in recycling programs since 1979. A drop off site started the program. In June of 1985,the program was expanded to include curbside collection for residents. Additional efforts to promote recycling included a tire recycling day. 4,600 tires were collected from 991 participants. During the year City Staff pursued, applied for and was denied a request to conduct a household hazardous waste collection. Efforts continue to bring this to a reality sometime in the future. PLANS FOR THE FUTURE The future for the City of Fridley, like all units of government is filled with change and restructuring. The federal deficit has and will continue to have a trickle down effect to lower levels. Cities are faced with the — problems of financing their own traditional levels of service while simultaneously coping with cuts in aids and the implementation of both federal and state mandates. In addition to these issues, we are being challenged to find alternatives to deal with costly issues relating to solid waste management. Internally, we have been reviewing our operation and making changes to improve effectiveness and efficiency. Phase II of the management information study calls for the design of specifications for both hardware and software. Originally this phase was scheduled to be completed during the year, however, remodeling took up more time than was anticipated and these activities have been postponed until 1990. Phase III is the acquisition of the hardware and software. It is hoped that this phase will be completed late summer, early fall, 1990. Full conversion is planned for January 1, 1991. Phase II of the records retention program is the establishment of the central files. Benefits derived will include the consolidation and elimination of duplicate files, as well as increased physical space for other uses. Steps to accomplish this include converting from legal to letter size files, microfilming/microfiching documents, establishing a city-wide classification/coding system, etc. Several departments are targeted for conversion in 1990 with the remainder to be completed in 1991. With regards to solid waste issues, we have plans to conduct a recycling survey of our residents. The —' questions will be structured to determine attitudes about recycling, gather information on how we can increase participation, improve or add programs and attempt to determine the level of responsibility the residents may be willing to accept in financing various alternatives. With reduced revenue streams, citizen involvement and voluntary participation is critical to the creation, implementation and maintenance of successful, cost effective programs. Significant projects for 1990 include the testing of our wells for possible contamination. Several of the surrounding communities have identified problems and been involved in law suits and costly corrective measures. During 1990, testing will be done to identify any problems and then evaluate alternatives for correction. Additional projects affecting our water and sewer systems include the construction of a new well, a new elevated storage tank, and major repairs to our 1.5 million gallon and 3 million gallon reservoirs. All of these projects are scheduled for completion during 1990. 7 CITY OF FRIDLEY, MINNESOTA FINANCIAL INFORMATION INTERNAL CONTROLS In developing and improving the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not — absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition and the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed — the benefits likely to be derived and the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe that the City's internal — accounting controls adequately safeguard assets and provide reasonable assurance of the proper recording of financial transactions. BUDGETARY CONTROLS A complete budgetary system of accounts is maintained for the General and Special Revenue Funds. Budgetary control is maintained in compliance with the City Charter Requirements. The Charter provides that it is the duty of the City Manager to strictly enforce the provisions of the budget. The management policy of the City is such that the existence of a particular item or appropriation in the approved budget — does not mean that it will or must be automatically expended. It is the policy of the City to control budgets at the expenditure category level. Budget adjustments between City divisions are made upon the approval of a resolution by the City Council. The City Charter provides that the City Council shall not have power to increase 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 which 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 ranged from 7.75% to 9.07% during the year. DEBT ADMINISTRATION Net general bonded debt per capita, and the percentage of the net general bonded debt to taxable value — are useful indicators of the City's debt position. At December 31, 1989 the City of Fridley's debt service funds provided sufficient capital to cover the net general bonded debt. The City has numerous debt issues outstanding. Of the$30,060,000 outstanding, $6,510,000 represent special assessment debt with government commitment and the remaining $23,550,000 relates to tax increment issues supported by revenue from the established tax increment areas. It is important to note however,that included in these figures are$14,125,000 of 1985 Variable Rate issues that in accordance with State statutes and the opinion of legal counsel have been effectively defeased with the issuance of the 1986 fixed rate Crossover Bonds, which are also included in these figures. The 8 CITY OF FRIDLEY, MINNESOTA FINANCIAL INFORMATION (CONTINUED) DEBT ADMINISTRATION (CONTINUED) proceeds from the Crossover Bonds are held in trust with an escrow agent to pay for 85%of the principal —' of the Variable Rate Bonds and 100% of the interest on themselves. Funds to retire the remaining 15% of principal on the Variable Rate Bonds have been reserved in the Debt Service Fund. It is the opinion of the Governmental Accounting Standards Board that it is not possible to defease variable rate debt due to the uncertainty of the interest. On the other hand, it is the opinion of the City and its bond counsel that with the issuance of the Crossover Bonds we have eliminated that uncertainty.If variable rates were to rise to a level greater than those on the fixed rates, we would 'crossover' or completely refund the Variable Rate Bonds. The City of Fridley has, since 1982, maintained a credit rating of a Aa1 on its long-term bonds. FISCAL DISPARITIES The commonly referred to 'Fiscal Disparity Law' was adopted by the Legislature in 1971. The area of the fiscal disparity district encompasses all the properties located within the seven-county metropolitan area The law provides that 40%of all new commercial/industrial property valuations or growth be placed in an areawide 'pool', and shared according to specific criteria TAX INCREMENT DISTRICTS The City Council took action on May 7, 1979 to form the first of nine tax increment districts. In 1985, the individual districts were combined into one redevelopment district to more easily manage the overall activities. All of the districts have been established in economically depressed areas within the City. With the successful relationship that the City and the Housing and Redevelopment Authority have developed, many benefits have been derived. During the past few years there has been a lot of activity in various areas throughout the City. In the North Area the Springbrook apartments at Northtown were completed. In the Moore Lake area, three projects have been completed or are nearing completion. The Northwest Racquet and Swim Club is scheduled for —. opening in the summer of 1990. There is also a new shopping center and an office complex which are in the process of leasing space. GENERAL GOVERNMENT FUNCTIONS The following schedule presents a summary of the General Fund, Special Revenue Funds, Debt Service Funds and the HRA Capital Projects Fund revenues for fiscal year ended December 31, 1989. Percent Increase/ Revenues Amount of Total (Decrease) Taxes and special assessments $6,192,563 44.43% $993,867 Licenses and permits 477,192 3.42% 98,639 Intergovernmental 4,952,247 35.53% 1,626,068 Charges for services 158,663 1.14% (1,592) Fines and forfeits 241,235 1.73% (51,058) Interest on investments 1,744,582 12.52% (86,538) Miscellaneous 170,887 1.23% (44,900) Total $13,937,369 100.00% $2,534,486 9 CITY OF FRIDLEY, MINNESOTA — FINANCIAL INFORMATION (CONTINUED) GENERAL GOVERNMENT FUNCTIONS (CONTINUED) The most significant increases in revenues were derived from taxes, special assessments and intergovernmental revenue. The increase in taxes is primarily due to additional assessed value being placed on the tax rolls for the first time due to redevelopment projects. The increase in intergovernmental revenue is due to the fact that in 1988, we didn't receive any money in the form of state aid construction. The most significant decrease in revenues was seen in interest on investments. It was anticipated that there would be a decline as a result of the major improvements the City undertook during the year. The following schedule presents a summary of the General Fund, Special Revenue Funds, Debt Service ., Funds and the HRA Capital Projects Fund expenditures for fiscal year ended December 31, 1989. Percent Expenditures Amount of Total Increase Current: General government $1,921,559 17.07% ($26,868) Public safety 3,030,507 26.92% 289,042 Civic center 273,095 2.43% 67,441 Public works 2,222,203 19.74% 207,386 - Recreation and naturalist 628,397 5.58% 38,626 Debt service 3,181,419 28.26% 429,339 Total $11,257,180 100.00% $1,004,966 The most significant increase in expenditures was in debt service. This is largely due to the fact that we are reporting on both the Variable Rate Bonds of 1985 and the Crossover Bonds of 1986. As mentioned previously in this letter it is the opinion of the City and its legal counsel that the 1985 Variable Rate Bonds — have been effectively defeased. General Fund Balance The fund balance is used to provide working capital for the fund until tax settlements and state aids are received in July and December of each year, to provide funds for unknown events which could have an adverse effect on the fund, and to help finance future budgets. — ENTERPRISE OPERATIONS — The enterprise funds account for the financing of services to the general public in which all or most of the costs involved are paid in the form of charges by the users of such services. In the City of Fridley, Enterprise Funds are used to account for the operation of the public utility system, and two municipal liquor stores. Except for ownership, Enterprise funds bear a close resemblance to privately owned utility or service enterprises. 10 CITY OF FRIDLEY, MINNESOTA FINANCIAL INFORMATION (CONTINUED) GENERAL GOVERNMENT FUNCTIONS (CONTINUED) Liquor Fund The liquor fund was established to account for the operation and financing of the City-owned municipal Mississippi Street. The City owns the store at the Highway 65 location and currently has a lease with one year options at the other store. In 1984, the City changed its sales philosophy to the wholesale approach so that we could remain competitive with the three neighboring communities which use wholesale pricing. Retained earnings of the Liquor Fund were $999,042 on December 31, 1989 as compared to $939,821 at the closing of the last fiscal year. Public Utility Fund This fund accounts for the operation and financing if the City-owned sewer and water systems. Included in the assets of the fund is a receivable from the Metropolitan Waste Control Commission of $230,145 which represents the City's share of the equity in the Minneapolis Sewer System which was acquired by the Commission on January 1, 1971. This amount will be paid to the City by means of issuing credits against future sewer billings from the Commission. These credits will be applied in annual installments with interest through 1999. The assets for the Water and Sewer Distribution system,originally financed by special assessments,were transferred from General Fixed Assets to the Public Utility Fund in 1978. Additional Fixed Assets were transferred in 1979, 1984 and 1989. Those improvements to the utility system paid for or financed directly by the Public Utility Fund have always been carried in the Public Utility Fund and depreciated. Retained earnings on December 31, 1989 were$9,170,697 compared to$8,741,413 at the closing of the last fiscal year. 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 which allow us to directly benefit from our good experience rating. In the future an analysis will be made of feasibility of self insuring all or a portion of other policies. NMI 11 CITY OF FRIDLEY, MINNESOTA — OTHER INFORMATION PENSIONS Employees in the City of Fridley are covered by five pension plans: 1) Fridley Fire Relief Association for Volunteer Firemen. 2) Fridley Police Relief Association, for Police Officers hired prior to December 15, 1975. 3) Public Employees Retirement Police and Fire Plan, covering the City's full-time Firemen and Police Officers hired after December 15, 1975. 4) The basic Public Employees Retirement Plan, which covers certain other City civilian employees. 5) Coordinated Public Employees Retirement Plan, which covers the balance of the City civilian employees. The employees covered by the Coordinated P.E.R.A. Plan are also covered by Social Security. The City is currently making all pension contributions required by law. For additional background information on the pension plans covering City employees, see Notes to the Financial Statements. 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 Department of the State of Minnesota This requirement has been complied with and the opinion of the Voto, Tautges, Redpath & Co., Ltd., is included in this report. CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE 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, 1988. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports 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 report continues to conform to the Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. 12 CITY OF FRIDLEY, MINNESOTA ACKNOWLEDGEMENTS The preparation of this report on a timely basis could not have been accomplished without the efficient and dedicated services of the Finance Department, with special recognition to Marcy Everette for typing this report, and the professional guidance of Voto, Tautges, Redpath & Co., Ltd. We would also like to Mal 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, Richard D. Pribyl Julie M. Burt Finance Director Assistant Finance Director 13 • 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, 1988 — 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 (CAFR's) achieve the highest standards in government accounting and financial reporting. M J 1"4, -.Q UMTEuo IIES President CANADA H s -- o� s gay RATIM tge NK.so Executive Director 14 FINANCIAL SECTION i iOEM AMA T AUDITOR'S OPINION VOTO, TAUTGES, REDPATH & CO., LTD. VIF1K CERTIFIED PUBLIC ACCOUNTANTS Birch Lake Professional Building • 1310 E. Hwy. 96• White Bear Lake, MN 55110 • Fax (612)426-5004 • Phone(612)426-3263 ROBERT J VOTO,CPA ROBERT G.TAUTGES,CPA IAMES S.REDPATH,CPA D.KENNETH GEORGE,CPA DAVID J.MOL,CPA INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Fridley, Minnesota We have audited the general purpose financial statements of the City of Fridley, Minnesota as of and for the year ended December 31, 1989 as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. 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 opinion. In our opinion,the general purpose financial statements referred to above present fairly,in all material respects, the financial position of the City of Fridley,Minnesota,as of December 31, 1989, and the results of its operations and changes in financial position of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining,individual fund, and account group financial statements, schedules and statistical information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of the City of Fridley,Minnesota. Such information,except for that portion marked "unaudited", on which we express no opinion,has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and,in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. • April 6, 1990 %04-, ' , VOTO, TAUTGES, REDPATH& CO., LTD. Certified Public Accountants MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS•PRIVATE COMPANIES PRACTICE SECTION MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MUNICIPAL FINANCE OFFICERS ASSOCIATION •MINNESOTA ASSOCIATION OF SCHOOL,BUSINESS OFFICIALS 15 COMBINED FINANCIAL STATEMENTS The combined statements are intended to provide an overview and broad perspective of the City's financial position and operations. These statements present a summary set of information needed to control and analyze current operations to determine compliance with legal and budgetary limitations and to assist in financial planning. The following combined statements are presented: Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types and Expendable Trust Funds Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General and Special Revenue Fund Types Combined Statement of Revenues, Expenditures, and Changes in Retained Earnings - All Proprietary Fund Types Combined Statement of Cash Flows - All Proprietary Fund Types CITY OF FRIDLEY, MINNESOTA — COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1989 Governmental Fund Types Special Debt Capital General Revenue Service Projects Assets Cash $966,659 $ $ $700 Deposits with trustee 11,576,900 Investments 4,639,706 66,344 11,767,188 13,678,361 Receivables: Accounts 1,821 18,265 800 Taxes 319,752 662,723 Special Assessments 7,989 2,548,890 131,837 Mortgage 990,000 Interest 837,531 197,903 -, Due from other funds 10,374 48,519 Due from other governments 41,140 33,588 Inventories, at cost 23,230 Prepaid expenditures/expenses Long term receivable Other assets Property and equipment (Net of depreciation) Amount available in debt service fund Amount to be provided for retirement of general long term debt Total Assets $6,837,828 $128,571 $25,892,978 $15,710,843 See Accompanying Notes to Financial Statements 18 Exhibit A-1 Fiduciary Proprietary Fund Types Fund Types Account Groups Totals Internal Trust and General General Long (Memorandum Only) Enterprise Service Agency Fixed Assets Term Debt 1989 1988 $4,520 $547,879 $72,905 $ $ 1,592,663 $1,810,906 11,576,900 12,103,900 5,353,285 955,493 36,460,377 38,026,242 727,701 305 2,048 750,940 641,963 828 983,303 886,504 2,688,716 3,036,186 990,000 963,480 1,035,434 1,053,680 3,655 62,548 331,861 17,516 92,244 177,858 273,926 297,156 382,861 144,298 21,073 165,371 128,404 230,145 230,145 249,305 2,647,512 2,647,512 2,167,615 16,772,735 25,410,099 42,182,834 39,374,148 23,354,940 23,354,940 23,339,588 6,705,060 6,705,060 8,505,412 $23,527,781 $1,524,750 $2,723,293 $25,410,099 $30,060,000 $131,816,143 $133,170,913 19 CITY OF FRIDLEY, MINNESOTA COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS (CONTINUED) —, December 31, 1989 Governmental Fund Types Special Debt Capital -, General Revenue Service Projects Liabilities and Fund Equity Liabilities Advance from city's general account $ $20,539 $ $1,655,151 Accounts payable 105,069 28,901 2,596 50,589 Deposits payable 6,847 10,000 98,743 Contracts payable 452,651 Salaries payable 175,744 4,070 783 Compensated absences payable Deferred revenue 287,190 2,535,442 1,763,446 Due to other funds 62,548 Due to other governments 490 305,919 ., Bonds payable Total liabilities 575,340 63,510 2,538,038 4,389,830 Fund equity Contributed capital Investment in general fixed assets — Retained earnings- Reserved Unreserved ._ Fund balance: Reserved 671,608 16,907,951 5,510,028 Unreserved- ^ Designated 5,310,764 10,791 6,853,739 Undesignated 280,116 54,270 6,446,989 (1,042,754) Total retained earnings/ — fund balance 6,262,488 65,061 23,354,940 11,321,013 Total fund equity 6,262,488 65,061 23,354,940 11,321,013 Total liabilities and fund equity $6,837,828 $128,571 $25,892,978 $15,710,843 See Accompanying Notes to Financial Statements 20 Exhibit A-1 Continued Fiduciary Proprietary Fund Types Fund Types Account Groups Totals _ Internal Trust and General General Long (Memorandum Only) Enterprise Service Agency Fixed Assets Term Debt 1989 1988 $ $ $ $ $ $1,675,690 $1,995,274 174,536 2,875 364,566 482,464 2,683,961 2,799,551 2,339,166 — 11,092 463,743 729,835 30,443 211,040 206,679 736,149 736,149 788,798 751 °4,586,829 4,821,401 62,548 331,861 94,474 8,384 409,267 308,138 30,060,000 30,060,000 31,845,000 310,545 739,024 2,693,096 30,060,000 41,369,383 43,848,616 — 13,047,497 13,047,497 12,781,455 25,410,099 25,410,099 22,873,756 1,756,113 785,726 2,541,839 1,352,594 8,413,626 8,413,626 9,681,234 23,089,587 26,766,788 — 12,175,294 7,177,013 30,197 5,768,818 8,698,457 — 10,169,739 785,726 30,197 51,989,164 53,676,086 23,217,236 785,726 30,197 25,410,099 90,446,760 89,331,297 $23,527,781 $1,524,750 $2,723,293 $25,410,099 $30,060,000 $131,816,143 $133,179,913 a 21 CITY OF FRIDLEY, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES-ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS Year Ended December 31, 1989 Governmental Fund Types Special Debt General Revenue Service Revenues: Taxes and special assessments $2,941,318 $ $908,580 Licenses and permits 411,168 66,024 Intergovernmental revenue 3,444,418 1,492,629 Charges for services 158,663 Fines and forfeits 241,235 Interest on investments 303,951 162,745 756,971 Miscellaneous 136,995 15 Total revenues 7,637,748 1,721,413 1,665,551 Expenditures: Current General government 1,121,745 327,232 Public safety 3,030,507 Civic center 273,095 Public works 2,222,203 Recreation and naturalist 628,397 Debt service 3,181,419 Capital outlay 485,721 581 ^ Total expenditures 7,761,668 327,813 3,181,419 • Excess(deficiency)of revenues over expenditures (123,920) 1,393,600 (1,515,868) Other financing sources(uses): Operating transfers in 150,259 1,531,220 Operating transfers out (605,104) (249,591) Total other financing sources(uses) (454,845) (249,591) 1,531,220 Excess(deficiency) of revenues and other financing sources over expenditures and other financing uses (578,765) 1,144,009 15,352 Fund Balance January 1 6,318,195 1,495,807 23,339,588 Residual Equity Transfers in (out) 523,058 (2,574,755) Fund Balance December 31 $6,262,488 $65,061 $23,354,940 — See Accompanying Notes to Financial Statements 22 Exhibit A-2 Fiduciary Fund Type Totals _ Capital Trust and (Memorandum Only) Projects Agency 1989 1988 — $3,503,241 $ 7,353,139 $5,296,520 477,192 378,553 _ 31,673 4,968,720 3,744,038 158,663 160,255 241,235 292,293 _ 867,066 4,872 2,095,605 2,413,352 213,264 350,274 238,886 4,615,244 4,872 15,644,828 12,523,897 564,536 2,013,513 2,239,293 — 3,030,507 2,741,465 273,095 205,654 2,222,203 2,014,957 ,,. 628,397 589,771 3,181,419 2,752,080 5,933,832 6,420,134 4,741,786 6,498,368 0 17,769,268 15,285,006 — (1,883,124) 4,872 (2,124,440) (2,761,109) — 975,092 2,656,571 4,061,182 — (1,809,053) (2,663,748) (4,015,341) (833,961) 0 (7,177) 45,841 (2,717,085) 4,872 (2,131,617) (2,715,268) — 11,463,343 25,325 42,642,258 45,757,526 2,574,755 523,058 (400,000) — $11,321,013 $30,197 $41,033,699 $42,642,258 23 CITY OF FRIDLEY, MINNESOTA - COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUND TYPES Year Ended December 31, 1989 General Fund Variance -" Favorable Budget Actual (Unfavorable) Revenues: Taxes and special assessments $2,983,863 $2,941,318 ($42,545) Licenses and permits 310,117 411,168 101,051 Intergovernmental revenue 3,337,612 3,444,418 106,806 Charges for services 162,923 158,663 (4,260) Fines and forfeits 275,975 241,235 (34,740) Interest on investments 331,342 303,951 (27,391) Miscellaneous 156,974 136,995 (19,979) Total revenues 7,558,806 7,637,748 78,942 Expenditures: Current General government 1,238,786 1,121,745 117,041 Public safety 3,039,815 3,030,507 9,308 Civic center 279,714 273,095 6,619 Public works 2,235,543 2,222,203 13,340 '^ Recreation and naturalist 634,550 628,397 6,153 Capital outlay 524,917 485,721 39,196 Total expenditures 7,953,325 7,761,668 191,657 Excess(deficiency)of revenues over expenditures (394,519) (123,920) 270,599 Other financing sources(uses): Operating transfers in 148,860 150,259 1,399 - Operating transfers out (664,949) (605,104) 59,845 Total other financing sources(uses) (516,089) (454,845) 61,244 Excess(deficiency) of revenues and other financing sources over expenditures and other financing uses (910,608) (578,765) 331,843 Fund balance January 1 6,318,195 6,318,195 Residual equity transfer in (out) 523,058 523,058 Fund Balance December 31 $5,407,587 $6,262,488 $854,901 - - See Accompanying Notes to Financial Statements 24 Exhibit A-3 Totals Special Revenue Fund Types (Memorandum Only) - Variance Variance- Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ $ $ $2,983,863 $2,941,318 ($42,545) 54,440 66,024 11,584 364,557 477,192 112,635 -" 1,496,643 1,492,629 (4,014) 4,834,255 4,937,047 102,792 162,923 158,663 (4,260) 275,975 241,235 (34,740) - 160,930 162,745 1,815 492,272 466,696 (25,576) 15 15 156,974 137,010 (19,964) 1,712,013 1,721,413 9,400 9,270,819 9,359,161 88,342 - 339,604 327,232 12,372 1,578,390 1,448,977 129,413 3,039,815 3,030,507 9,308 279,714 273,095 6,619 - 2,235,543 2,222,203 13,340 634,550 628,397 6,153 88,488 581 87,907 613,405 486,302 127,103 - 428,092 327,813 100,279 8,381,417 8,089,481 291,936 - 1,283,921 1,393,600 109,679 889,402 1,269,680 380,278 - 148,860 150,259 1,399 (249,591) (249,591) (914,540) (854,695) 59,845 (249,591) (249,591) 0 (765,680) (704,436) 61,244 1,034,330 1,144,009 109,679 123,722 565,244 441,522 1,495,807 1,495,807 7,814,002 7,814,002 - (2,574,755) (2,574,755) (2,574,755) (2,051,697) 523,058 ($44,618) $65,061 $109,679 $5,362,969 $6,327,549 $964,580 25 Exhibit A-4 CITY OF FRIDLEY, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS -ALL PROPRIETARY FUND TYPES Year Ended December 31, 1989 With Comparative Totals for Year Ended December 31, 1988 Proprietary Fund Types Totals - Internal (Memorandum Only) Enterprise Service 1989 1988 Sales and cost of sales: Sales $2,382,991 $ $2,382,991 $2,439,148 Cost of sales 1,929,794 1,929,794 1,992,782 „ Gross profit 453,197 0 453,197 446,366 Operating revenues: Water sales and sewer rents 2,767,449 2,767,449 2,618,230 Other 111,731 111,731 107,512 Charges for services 325,803 325,803 328,028 ,, Total operating revenues 2,879,180 325,803 3,204,983 3,053,770 Operating expenses: ,_ Personal services 860,295 96,721 957,016 823,300 Supplies and other charges 2,179,301 302,409 2,481,710 2,308,671 Capital outlay 12,962 12,962 Depreciation 518,917 41,064 559,981 530,514 Total operating expenses 3,558,513 453,156 4,011,669 3,662,485 Operating(loss) (226,136) (127,353) (353,489) (162,349) Non-operating revenues(expenses): Interest on investments 378,084 139,176 517,260 553,013 Debt service (380) Loss on reclassification of assets (761) (310) (1,071) Other 3,536 70,626 74,162 46,035 Total non-operating revenues (expenses) 380,859 209,492 590,351 598,668 - Income before operating transfers 154,723 82,139 236,862 436,319 - Operating transfers in 17,177 17,177 4,159 Operating transfers out (10,000) (10,000) (50,000) Total operating transfers 7,177 0 7,177 (45,841) Net income 161,900 82,139 244,039 390,478 Credit arising from transfer of depreciation on contributed capital 326,605 326,605 322,399 Retained earnings January 1 9,681,234 1,352,594 11,033,828 9,920,951 Residual equity transfers in (out) (649,007) (649,007) 400,000 Retained earnings December 31 $10,169,739 $785,726 $10,955,465 $11,033,828 See Accompanying Notes to Financial Statements 26 - CITY OF FRIDLEY, MINNESOTA COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION - Exhibit A-5 ALL PROPRIETARY FUND TYPES - Year Ended December 31, 1989 With Comparative Totals for Year Ended December 31, 1988 Proprietary Fund Types Totals Internal (Memorandum Only) Enterprise Service 1989 1988 - Sources of working capital: Operations: _ Net income for the year $161,900 $82,139 $244,039 $390,478 Items not required working capital-depreciation 518,917 41,064 559,981 530,514 Working capital provided by operations 680,817 123,203 804,020 920,992 Decrease in long term receivable 19,160 19,160 22,826 - Net decrease in restricted assets 20,000 Contributed capital 635,539 635,539 18,467 Loss on reclassification of assets 761 310 1,071 - Residual equity transfer 400,000 Net book value of transferred assests 125,950 125,950 Total sources of working - capital 1,336,277 249,463 1,585,740 1,382,285 Uses of working capital: -.. Acquisition of property and equipment 964,188 38,049 1,002,237 1,214,005 Residual equity transfer 649,007 649,007 - Total uses of working capital 964,188 687,056 1,651,244 1,214,005 Increase(decrease) in .. working capital $372,089 ($437,593) ($65,504) $168,280 Elements of net increase (decrease) - in working capital: Cash ($373,727) $379,616 5,889 $543,190 Investments 797,037 (954,303) (157,266) (578,527) Accounts receivable 104,626 305 104,931 79,148 Due from other funds 3,655 3,655 Due from other governments 673 (1,010) (337) (87,239) Inventories, at cost (92,376) (92,376) (33,553) Prepaid expenses 15,894 21,073 36,967 1,903 Accounts payable (47,128) 64,077 16,949 (37,086) .. Contracts payable (6,092) (6,092) 274,917 Salaries payable (2,657) (2,657) (9,588) Compensated absences payable 52,649 52,649 9,355 Due to other funds 25,000 Due to other governments (27,816) (27,816) (39,240) Bonds payable 20,000 Increase(decrease) in working capital $372,089 ($437,593) ($65,504) $168,280 See Accompanying Notes to Financial Statements 27 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1989 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 accounting policies of the City of Fridley conform to generally accepted accounting policies applicable to governmental units. The following is a summary of the more significant policies: A. Principles used in the determination of the scope of the Governmental entity The City has implemented National Council on Governmental Accounting Statement 3, Defining the Governmental Reporting Entity. In accordance with Statement 3,for financial reporting purposes the City's financial statements include all funds,account groups, departments, agencies, boards, commissions and other organizations over which City officials exercise oversight responsibility. Oversight responsibility includes such aspects as appointment of governing body members, budget approval, approval of property tax levies, outstanding debt secured by City full faith and credit or revenues, responsibility for funding deficits and others. Included within the reporting entity: Fridley Housing and Redevelopment Authority(HRA)-The HRA was created to provide housing and redevelopment assistance to its citizens. The HRA provides this assistance through the administration of various programs. A majority of the funding is provided through the issuance of general obligation tax increment bonds guaranteed by the City. The City would also be responsible for deficits, therefore, the HRA is considered a component unit of the City. The operations of the HRA are reported in separate Debt Service and Capital Projects Funds. '^ Excluded from the reporting entity: Independent School District #11/Independent School District #13/Independent School District #14/Independent School District#16-These four school districts either reside wholly within the City of Fridley or overlap within the city boundaries. According to Minnesota State Statutes, ^ Minnesota school districts are totally independent of all other governing jurisdictions. The City has no authority to appoint board members and has no fiscal responsibility. School districts are able to levy taxes and issue debt in their own name. Fridley Police and Volunteer Firefighters Relief Associations-These associations are organized as non-profit organizations by their members to provide pension and other benefits to such members in accordance with Minnesota Statutes. Their boards of directors are elected by the membership of the association. All funding is conducted in accordance with Minnesota Statutes, whereby state aids flow to the associations, tax levies are determined by the associations and are only reviewed by the City. The associations pay benefits directly to their members. The associations may certify tax levies to the County directly if the City does not carry out this function. Because the associations are able to fund their programs independently of the City, they are excluded from the reporting entity. (See Notes 9 and 10 for disclosures relating to the pension plans operated by these organizations.) 28 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 1. Summary of Significant Accounting Policies (Continued) NMI B. Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets,liabilities,fund equity, revenues and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped,in the financial statements in this report, into seven generic fund types and three broad categories as follows: GOVERNMENTAL FUNDS Governmental funds include the general fund, special revenue funds, debt service funds and capital projects funds. The governmental fund measurement focus is based upon the determination of financial position and changes in financial position (sources, uses and balances of financial resources rather than upon net income determination). These funds are maintained on the "' modified accrual basis of accounting (explained further under Significant Accounting Policies). General Fund-The General Fund is the primary operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds-Special Revenue Funds are used to account for the proceeds of certain specific revenue sources that are restricted to expenditures for specified purposes. Debt Service Funds-Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. Capital Projects Funds - Capital Projects Funds are used for the acquisition or construction of major capital facilities other than those financed by proprietary funds. PROPRIETARY FUNDS Proprietary funds include enterprise funds and internal service funds. The proprietary fund measurement focus is based upon the determination of net income,financial position and changes in financial position. The generally accepted accounting principles here are those applicable to similar businesses in the private sector and thus these funds are maintained on the accrual basis of accounting. NMI Enterprise Funds - Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through use charges. Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City on a cost-reimbursement basis. OMR 29 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 1. Summary of Significant Accounting Policies (Continued) B. Fund Accounting FIDUCIARY FUNDS Fiduciary funds include expendable trust and agency funds. The measurement focus of the expendable trust funds is the same as governmental funds and is, therefore, maintained on the modified accrual basis of accounting. Trust Fund -The Trust Fund is used to account for assets held by the City in a trustee capacity for individuals, private organizations, other governments, and/or all other funds. The City's Trust Fund is classified as an Expendable Trust Fund and is accounted for in essentially the same manner as governmental funds. — Agency Funds-Agency Funds are clearing type funds for the collection of taxes or deposits held in trust, on behalf of individuals, private organizations and other governments. The funds are custodial in nature(assets equal liabilities)and do not involve measurement of results of operation. C. Measurement Focus The accounting and reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable trust funds are accounted for on a spending or 'financial flow'measurement focus. This means that only current assets and current liabilities are generally included on the balance sheets. (Their reported fund balance is considered a measure of'available spendable resources'.) Governmental fund operating statements present increases (revenues and other financing sources)and decreases(expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of -- 'available spendable resources' during a period. Fixed assets used in governmental fund type operations (general fixed assets) are recorded at historical costs and accounted for in the General Fixed Assets Account Group. Public domain (Infrastructure') general fixed assets consisting of roads, bridges, curbs and gutters, are capitalized along with other general fixed assets. No depreciation has been provided on general fixed assets. Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group, not in the governmental funds. The two account groups are not 'funds'. They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets, in spite of their measurement focus. However, special reporting treatments are used to indicate in all governmental funds that they should not be considered'available spendable resources',since they do not represent net current assets. Recognition of revenues in these funds represented by noncurrent receivables is deferred until they become current receivables. 30 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 1. Summary of Significant Accounting Policies (Continued) C. Measurement Focus (Continued) Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long-Term Debt Account Group. Proprietary funds are accounted for on a cost of services or'capital maintenance' measurement focus. This means that all assets, including fixed assets, and all liabilities, including long-term liabilities, associated with their activity are included on their balance sheets. Their reported fund equity is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. D. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. Governmental Funds and Expendable Trust Funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become susceptible to accrual, i.e., both measurable and available. Substantially all revenues are accrued. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred, except for principal and interest on general long-term debt which is recognized when due. Agency Fund assets and liabilities are accounted for on the modified accrual basis of accounting. Proprietary funds are accounted for using the accrual basis of accounting. Revenues are recognized when they are earned, and expenses are recognized when they are incurred. WIM E. Budgets and Budgetary Accounting 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 budget ordinance. Upon adoption of the annual budget ordinance by the Council, it becomes the formal appropriation budget for City operations. 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. 31 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 1. Summary of Significant Accounting Policies (Continued) E. Budgets and Budgetary Accounting (Continued) 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of an ordinance. 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. There were no supplemental appropriations required or made during the year. 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. Formal budgetary integration is employed as a management control device during the .• year for the General Fund and Special Revenue 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 Capital Projects Funds is accomplished through the use of project controls. 8. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles. 9. Budgetary control is maintained at the expenditure category level within each division. Budgetary control, by departments or divisions, and by category is required by the City ._ Charter. 10. 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. Assets, Liabilities and Fund Equity 1) 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. Earnings from such investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund. Investments are stated at cost which approximates market. The City provides temporary advances to funds that have insufficient cash balances by -- means of an advance from the general account. This is classified as a liability of the fund until adequate resources are received. 32 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) —' DECEMBER 31, 1989 1. Summary of Significant Accounting Policies (Continued) F. Assets, Liabilities and Fund Equity (Continued) '- 2) Deposits with Trustee Deposits with Trustee represent the net proceeds after issuance costs from the sale of two bond issues; 1) $10,045,000 Crossover Tax Increment Refunding Bonds of 1986 and 2) $3,100,000 Crossover Improvement Refunding Bonds of 1986. The proceeds are being used to refund 85% of the principal on the 1985 Variable Rate Issues and pay 100% of the interest on themselves. 3) Receivables Property Taxes Property tax levies are set by the City Council in October each year and are certified to the County for collection the following year. In Minnesota, counties act as collection agents for all property taxes. The County spreads the levies over all taxable property in the City. Such taxes become receivables of the City as of January 1. Property taxes are payable in equal installments by property owners to the County as follows: Personal property - February 28 and June 30 Real property - May 15 and October 15 The County remits the collections to the City and other taxing districts four times a year, in January, April, July and December. Unpaid taxes at December 31 become liens on the respective property and are classified in the financial statements as delinquent taxes receivable. The receivable is fully offset by deferred revenue as it is not available to finance current expenditures. Cities in Minnesota operate under a levy limitation set by state statutes. For taxes payable 1989, the 1988 tax levy plus state paid aids was increased 4% for inflation and an additional 1.014% for the percentage increase in households. Levies for bonded indebtedness are not limited by the law. Taxes payable on homestead property(as defined by State Statutes) are partially reduced by a homestead credit. This credit is paid to the City by the State in lieu of taxes levied against homestead property. The State remits this credit in two equal installments in July and December each year. Special Assessments Receivable 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 33 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 1. Summary of Significant Accounting Policies (Continued) — F. Assets, Liabilities and Fund Equity (Continued) 3) Receivables (Continued) Special Assessments Receivable (Continued) substantially complete. The assessments are collectible over a term of years generally consistent with the term of years of the related bond issue. Collection of annual installments(including interest) is handled by the County in the same manner as property taxes. Property owners are allowed to prepay total future installments without interest or prepayment penalties. Special assessments receivable includes the following components: Unremitted - amounts collected by Anoka County and not remitted to the City. Delinquent - amounts billed to property owners but not paid. Deferred - assessment installments which will be billed to property owners in future years. 4) Inventories Inventories are stated at cost or based on perpetual inventory systems. Inventory in the General Fund consists of expendable supplies held for consumption. The cost is recorded as an expenditure at the time individual inventory items are used. Reported inventories are equally offset by a fund balance reserve which indicates that they do not constitute'available spendable resources'even though they are a component of net current assets. Proprietary Funds inventory items are expensed at the time they are sold or used. (Consumption method). 5) Property and Equipment/General Fixed Assets All fixed assets are recorded at historical cost or estimated historical cost, if the original cost was not available. Donated fixed assets are carried at the fair market value on the date donated. Additions to general fixed assets for general City purposes, including public domain (infrastructure) fixed assets are recorded as expenditures of the applicable fund in the year in which the fixed asset was purchased or constructed, and are capitalized in the General Fixed Asset Account Group. Depreciation is not recorded on these assets. Property and equipment of the proprietary funds are capitalized in these funds. Depreciation of exhaustible property and equipment of the proprietary funds is charged as an expense against their operations and accumulated depreciation is reported on 34 CITY OF FRIDLEY, MINNESOTA ... NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 1. Summary of Significant Accounting Policies (Continued) F. Assets, Liabilities and Fund Equity (Continued) 5) Property and Equipment/General Fixed Assets (Continued) proprietary fund balance sheets. Depreciation has been provided over the estimated useful lives using the straight line method. The estimated useful lives are as follows: Improvements Other Than Building 20 - 50 years Buildings 20 - 50 years Machinery and Equipment 5 - 10 years Land N/A '— 6) Other Assets This account represents the market value of investments and other assets held in an agency fund for the City's deferred compensation plan. (See Note 15.) 7) Annual Leave The personnel ordinance limits the annual accumulation of benefits that can be accumulated from year to year. The Employee Benefits Internal Service Fund reflects the City's accrued liabilities for annual leave and other benefits for all City employees. That liability is stated in the Employee Benefits Funds and represents the maximum possible dilution of fund assets by retirements or extended approved leaves by employees. 8) Encumbrances Encumbrances represent purchase commitments. Encumbrances outstanding at year end are reported as reservations of fund balance since they do not constitute expenditures or liabilities. G. Revenues, Expenditures and Expenses The following transactions are accounted for as described below: General Property Taxes/Special Assessments-Revenue is recognized in the year of collection, .. with amounts due from the County and received early in the following year set up as receivable (unremitted receivables). Uncollected (delinquent)taxes and special assessments receivable are fully offset by deferred revenue as they are not available to finance current expenditures. General ,.., property taxes and special assessments are recognized when cash is received to prevent overstating due to delinquencies. Principal Portion of Special Assessments-Revenue is recognized in the year the assessments are collected. Interest Revenue on Special Assessments Receivable- Interest revenue is recognized in the year of collection of the current principal installment. 35 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 1. Summary of Significant Accounting Policies (Continued) G. Revenues, Expenditures and Expenses (Continued) Intergovernmental Revenues-Intergovernmental revenues in the form of state aids are recorded as revenue when allocations are made by statutory formula. Other intergovernmental revenues received as reimbursements for specific purposes or projects are recognized based upon the expenditures incurred. Intergovernmental revenues received through abatements or shares are recorded in the year determined to be measurable and available such as in the State Aid Fund. Interest on Investments - Interest is recorded as revenue in the year earned. Water and Sewer Service Charges- Revenue is recognized when earned with no allowance for uncollectibles as delinquent accounts are certified as a special assessment lien against the property billed. Unbilled service charges are included in receivables at year-end. Other Revenues - Licenses, fines, penalties and miscellaneous revenues are recorded as revenues when received in cash because they are generally not measurable until actually received. Interest Expense on Bonded Indebtedness- Interest expense is recorded as an expenditure when paid in the governmental fund types and accrued when incurred in the proprietary fund types. Bond and Interest Payments Due January 1 - Expenditures are recognized when amounts are remitted to the paying agent (usually in December) for payment of bonds and interest. H. Comparative Data Comparative total data for the prior year have been presented in the accompanying combined financial statements in order to provide an understanding of changes in the City's financial position — and operations. However, comparative (i.e., presentation of prior year totals by fund type) data have not been presented in all statements since their inclusion would make the statements unduly complex and difficult to read. Total columns on the combined statements are captioned 'Memorandum Only' to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position,results of operations,or changes in financial position in conformity with generally -. accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. Certain 1988 amounts have been reclassified to conform to the 1989 presentation. 36 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 2. Deposits and Investments A. Deposits In accordance with applicable Minnesota Statues,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 Statues 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 105% to insure that the safety of investment principal is attained and losses do not occur from rapid overnight deterioration. Balances at December 31, 1989 are as follows: Bank Carrying Balances Amount 1) Insured or collateralized by securites held by the City or its agent in the City's name $501,651 $344,817 2) Collateralized with securities held by the pledging institution trust department in the City's name 0 0 3) Uncollateralized or collateralized with securities not in the City's name 0 0 Totals $501,651 $344,817 - Categories 2 and 3 are not procedures that are authorized by Minnesota statutes. 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. 37 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 2. Deposits and Investments (Continued) B. Investments (Continued) (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. (g) Future contracts sold under authority of Minnesota Statutes 471.56, subd.5. 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 or dealers 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 dealer, or by its trust department or agent but not in the City's — name. The Category 1 securities consist of the various investment types shown below which are held by a trustee in the City's name. The carrying value, market value and credit risk of the investments held by the City at year end are as follows: Credit Risk Category Carrying Market Securities Type 1 2 3 Amount Value U.S. Government securities $7,306,178 $1,000,000 $8,306,178 $8,831,988 U.S. Government agencies or instrumentalities 20,888,995 20,888,995 20,752,564 Commercial paper 4,615,028 4,615,028 4,565,028 — Repurchase agreements 2,222,332 2,222,332 2,222,332 Total investments 32,810,201 0 3,222,332 36,032,533 36,371,912 .... Deposits with trustee 11,576,900 11,576,900 11,576,900 $44,387,101 $0 $3,222,332 $47,609,433 $47,948,812 38 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 2. Deposits and Investments (Continued) Deposits and Investments per accompanying financial statement: Cash $1,592,663 Deposits with trustee 11,576,900 Investments 36,460,377 Advance from city's general account (1,675,690) Total $47,954,250 3. Special Assessments Receivable Special assessments receivable at December 31, 1989 are as follows: Special Special Assessment Assessment Capital General Debt Service Projects Total Unremitted $153 $13,448 $45 $13,646 Delinquent 5,882 161,179 2,200 169,261 Deferred 1,954 2,374,263 129,592 2,505,809 Total $7,989 $2,548,890 $131,837 $2,688,716 39 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31. 1989 4. Due From Other Governments Amounts due from other governments at December 31, 1989 are as follows: ,^ General Fund: U.S. Treasury- Exp. Reimbursement $664 State of Minnesota- State Aid Maintenance 17,445 Anoka County a) Fines and Forfeits 18,580 — b) Gas Reimbursement 164 c) DWI Grant Reimbursement 3,096 City of Coon Rapids- Purchase of Furniture 330 — City of Moundsview 33 School District#14 828 $41,140 — Special Revenue Funds: — State of Minnesota a) Section 8 Housing 3,270 Anoka County a) Community Development Block Grant 9,720 b) Recycling 20,598 $33,588 Enterprise Funds: Utility Funds: Metropolitan Waste Control Commission (MWCC) - Current portion of amounts due from MWCC $17,516 Non-current portion - long term receivable of amounts due from MWCC $230,145 40 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 4. Due From Other Governments (Continued) The non-current receivable in the Utility Enterprise Fund represents: 1. The balance due for the sale of the City's sewer interceptors is$230,145 (the interceptors were sold to the Metropolitan Waste Control Commission January 1, 1971). This receivable will be paid to the City in annual installments with interest through 1999. Repayment will be made by issuing credits against future disposal charges from the Commission. 2. The amount of$11,444, which will be repaid with interest through 1998, is for advances made to the Commission during 1971 and 1972. 5. Changes in General Fixed Assets A summary of changes in general fixed assets are as follows: Balance Balance Jan 1, 1989 Additions Deletions Dec 31, 1989 Land $1,862,154 $57,094 $2,224 $1,917,024 Buildings 2,515,288 1,925,289 28,526 $4,412,051 Improvements other than buildings 13,185,323 97,781 54,939 $13,228,165 Machinery and equipment 2,947,195 1,567,440 447,659 $4,066,976 Construction in progress 2,363,796 1,087,634 1,665,547 $1,785,883 Total $22,873,756 $4,735,238 $2,198,895 $25,410,099 Construction in progress is composed of the following: Contracted Expended to Unexpended Amount Dec 31, 1989 Balance Moore Lake Improvement 986,194 $1,163,707 ($177,513) 1989 Street Projects 694,223 622,176 $72,047 Total $1,680,417 $1,785,883 ($105,466) 41 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 6. Summary of Proprietary Fund Property and Equipment In 1989, the City changed its criteria for capitalizing assets. The City recognized an expense for the loss — on this reclassification equal to the net book value of the assets deleted. The loss due to reclassification was $761 in the Enterprise Funds and $310 in the Internal Service Fund. A summary of proprietary fund type property, plant and equipment at December 31, 1989 follows: -" Enterprise Public Liquor Utilities Total Land $66,961 $154,531 $221,492 Buildings 174,116 1,524,072 1,698,188 Improvements other than buildings 18,677 1,883,218 1,901,895 Machinery and equipment 204,820 2,181,855 2,386,675 Water and sewer lines 16,781,927 16,781,927 464,574 22,525,603 22,990,177 -, Less: Accumulated depreciatio (235,091) (5,982,351) (6,217,442) Net property and equipment $229,483 $16,543,252 $16,772,735 7. Long-Term Debt The following is a summary of long-term debt transactions of the City for the year ended December 31, 1989: General Long-Term Debt Bonds payable at January 1, 1989 $31,845,000 -_ Bonds retired (1,785,000) Bonds payable at -- December 31, 1989 $30,060,000 42 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 7. Long-Term Debt (Continued) Bonds payable at December 31, 1989 are comprised of the following individual issues (in thousands of dollars): General Long-Term Debt: $2,135,000 G.O. Special Assessment Bonds of 1972 due in varying annual installments of $50,000 - $75,000 through January 1, 1994; interest at 5.20% $ 200 - 5.30% $1,550,000 Special Assessment Bonds of 1976 due in varying annual installments of $25,000 through February 1, 1990; interest at 5.80% -6.00% 25 $1,755,000 Special Assessment Bonds of 1980 due in varying annual installments of$25,000-$155,000 through February 1,2001;interest at 7.40% - 8.40% 550 $1,425,000 Special Assessment Bonds of 1982 due in varying annual installments of$15,000-$175,000 through February 1, 1999; interest at 9.40% - 10.70% 545 $3,100,000 Variable Rate Improvement Bonds of 1985 due in varying annual installments of$178,250-$385,250 through February 1,2000; interest will vary depending on economic condition with a ceiling of 11% per annum 2,775 $2,705,000 Refunding Improvement Bonds of 1986 due in varying annual installments of$140,000-$290,000 through February 1,2000;interest at 6.00% - 7.40% 2,415 $4,070,000 Tax Increment Revenue Refunding Bonds of 1985 due in varying annual installments of$180,000-$460,000 through February 1, 1999; interest at 6.75% - 9.00% 3,280 $11,550,000 Variable Rate Tax Increment Bonds of 1985 due in varying annual -- installments of$293,250 - $2,800,250 through February 1, 2000; interest will vary depending on economic conditions with a ceiling of 10% per annum 10,845 ,... $10,045,000 General Obligation Tax Increment Refunding Bonds of 1986 due in varying annual installments of$230,000 - $2,095,000 through February 1, 2000; interest at 6.00% - 7.40% 9,425 $ 30,060 43 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 7. Long-Term Debt (Continued) — Annual Requirements to Amortize Long-Term Debt December 31, 1989 General Obligation Year Ending Special December 31 Assessment Redevelopment Total -, 1990 $767,327 $1,517,445 $2,284,772 1991 668,023 1,546,964 2,214,987 —. 1992 567,943 1,641,470 2,209,413 1993 525,783 1,665,064 2,190,847 1994 420,839 1,691,495 2,112,334 _. 1995 - 1999 1,866,494 8,766,710 10,633,204 2000 - 2001 354,917 2,172,515 2,527,432 $5,171,326 $19,001,663 $24,172,989 — The preceding debt service requirements do not include interest on the Variable Rate Improvement and Tax Increment Bonds of 1985 due to their uncertainty. Currently rates approximate 6%. There is, however, — a ceiling of 11% and 10% respectively. It should also be noted that$11,576,900 is being held in escrow to make principal payments on the variable rate bonds and interest payments on the crossover bonds. The debt service on the variable rate issues is completely eliminated in the year 1990 as the City will crossover to the fixed rate General Obligation Bonds of 1986 at this time. $23,354,940 is available in the Debt Service Fund to service the General Obligation Bonds. The Tax Increment Revenue Bonds are payable primarily from increment revenue that is generated from the related district. — There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions. Legal Debt Margin - Under applicable State Statutes, the legal debt margin is 2% of the most recent market value less certain deductions. At December 31, 1989, the legal debt margin was $19,351,788. A. Prior-Year Defeasance of Debt In prior years, the City defeased certain general obligation (and other) bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly,the trust account assets and the liability for the defeased bonds are not included in the City's financial statements. At December 31, 1989, $2,850,000 of bonds outstanding are considered defeased. Defeased bonds are scheduled to be called February of 1990 and February, 1994. -- 44 CITY OF FRIDLEY, MINNESOTA IMO NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 8. Defined Benefit Pension Plans-Statewide A. Plan Description The majority of all full-time and certain part-time employees of the City of Fridley are covered by defined benefit pension 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 public employee retirement systems. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Security and Basic 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. The payroll for employees covered by PERF .. and PEPFF for the year ended December 31, 1989,was$3,172,087 and$1,061,197, respectively; the City's total payroll was $5,210,737. 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 member's average salary for any five successive years of allowable service, age, and years of credit at — termination of service. Two methods are used to compute benefits for Coordinated and Basic members. The retiring member receives the higher of step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rates for a Basic — member is 2 percent of average salary for each of the first 10 years of service and 2.5 percent for each remaining year. For a Coordinated member,the annuity accrual is 1 percent of average salary for each of the first 10 years and 1.5 percent of each remaining year. Using Method 2, the annuity accrual rate is 2.5 percent of average salary for Basic members and 1.5 percent for -. Coordinated members. For PEPFF members, the annuity accrual rate is 2.5 percent of average salary for each of the first 25 years and 2 percent for each remaining year. For PERF members whose annuity is calculated using Method 1,and for all PEPFF members,a full annuity is available when age plus years of service equal 90. There are different types of annuities available to members upon retirement. A normal annuity is — a lifetime annuity that ceases upon the death of the retiree. No survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service, in order to qualify for — a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. —, B. Contributions Required and Contributions Made Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. The City makes annual contributions to the pension plans equal to the amount required by State statutes. According to Minnesota Statutes Chapter 356.215, Subdivision 4 (g), the date of full funding required for the PERF and the PEPEF is the year 2020. As part of the annual actuarial valuation, PERA's actuary determines the sufficiency of the statutory contribution rates towards -• meeting the required full funding deadline. The actuary compares the actual contribution rate to a'required' contribution rate. Current combined statutory contribution rates and actuarially required contribution rates for the plans are as follows: 45 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 8. Defined Benefit Pension Plans-Statewide (Continued) B. Contributions Required and Contributions Made (Continued) Statutory Rates: Required Employees Employer Rates PER F: Basic & Coordinated plans 4.27% 4.67% 9.42% - PEPFF 8.00% 12.00% 16.69% Total contributions made by the City during fiscal year 1989 were: Percentage of Amounts Covered Payroll Employees Employer Employees Employer -, PER F: Basic& $46,712 $61,118 8.23% 10.73% Coordinated plan 99,071 105,452 4.23% 4.48% PEPFF 83,173 125,053 8.00% 12.00% Total $228,956 $291,623 The City's contribution for the year ended June 30, 1989,to the PERF represented .37 percent of total contributions required of all participating entities. For the PEPFF, contributions for the year "- ended June 30, 1989, represented .94 percent of total contributions required of all participating entities. C. Funding Status and Progress 1. Pension Benefit Obligation 0.., The"pension benefit obligation'is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. .- The measure, which is the actuarial present value of credited projected benefits, is intended to help users assess PERA's funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons — among Public Employees Retirement Systems and among employers. PERA does not make separate measurements of assets and pension benefit obligation for individual employers. 46 CITY OF FRIDLEY, MINNESOTA — NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 8. Defined Benefit Pension Plans-Statewide (Continued) C. Funding Status and Progress (Continued) 1. Pension Benefit Obligation (Continued) The pension benefit obligations of the PERA as of June 30, 1989, were as follows: Public Public Employees Employees Retirement Police& Fund Fire (PERF) (in millions) (PEPFF) Total pension benefit obligations $3,714 $582 Net assets available for benefits, at cost(Market values for PERF=$3,801,129 PEPFF=$694,227) 2,935 638 — Unfunded (assets in excess of) pension benefit obligation $779 ($56) The measurement of the pension benefit obligation is based on an actuarial valuation as of June 30, 1989. Net assets available to pay pension benefits were valued as of June "° 30, 1989. 2. Changes In Actuarial Methods and Benefit Provisions A number of benefit improvements became effective during fiscal year 1989. Some of the major improvements affecting each fund include a reduction in the period required for vesting from five years to three years; an option for members hired before July I, 1989, to have their annuity calculated under a level benefit accrual formula; the interest rate credited on refunds of member contributions increased from 5 percent to 6 percent; and the provision for an automatic bounce back feature for all joint and survivor annuity options. — In the PEPFF, age and/or service requirements were reduced for eligibility for a normal retirement annuity, and early retirement annuity, and for certain disability and survivor benefits. For each fund, there were changes in the actuarial assumptions used in the annual actuarial valuation. Effective for all funds beginning in fiscal year 1989, the pre-retirement interest rate assumption was increased from 8 percent to 8.5 percent. Additionally for the PERF and the PEPFF, the amortization target date has been changed to 2020. Shown below are the effects on the pension benefit obligation of these changes in plan benefits and actuarial assumptions. 47 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) — DECEMBER 31, 1989 — 8. Defined Benefit Pension Plans-Statewide (Continued) 2. Changes in Actuarial Methods and Benefit Provisions (Continued) Increase(Decrease) in Pension Benefit Obligation Due to: (In Thousands) PERF PEPFF — Changes in Plan Benefits $127,472 $27,851 Changes in Actuarial Assumptions (84,154) (25,963) Net Increase in Pension Benefit Obligation $43,318 $1,888 — D. Ten-Year Historical Trend Information Ten-year historical trend information is presented in PERA's Comprehensive Annual Financial Report for the year ended June 30, 1989. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. E. Related Party Investments — As of June 30, 1989, and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. — F. Federal Insurance Contribution Act (Social Security) Approximately sixty (60%) percent of the permanent City employees are covered by Social Security. The 1989 contribution rate was 7.51% on$48,000 in wages. The cost of Social Security for 1989 was$187,234. In addition, as of April 1, 1986 all newly hired or returning seasonal employees who are not covered by PERA and thus contributing to Social Security, must contribute 1.45% of their salary with an equal match made by the City. The 1989 cost for Medicare was $8,257. 9. Defined Contribution Pension Plan - Fridley Volunteer Firefighter Relief Association A. 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. The City's annual payroll was$5,210,737. There are no payroll earnings for volunteer firefighters subject to pension contributions; however,in accordance with the Associations bylaws, each active and deferred member contributes $150 per year to the Association. The City also remitted $88,192 and $88,820 in State Aid to the Association for 1989 and 1988 respectively. 48 CITY OF FRIDLEY. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) — DECEMBER 31. 1989 _ 9. Defined Contribution Pension Plan - Fridley Volunteer Firefighter Relief Association (Continued) A. Plan Description (Continued) 'm% Currently the City does not levy any taxes on behalf of the Association. In the event that the state aid formulas would change, the City would pick up the shortfall. ... The contribution benefits for each member (and earnings allocated to each members account) are vested as follows: Years of Service Percent Vested 0 thru 9 years 0% 10 years 60% '" 11 years 64% 12 years 68% 13 years 72% .- 14 years 76% 15 years 80% 16 years 84% -- 17 years 88% 18 years 92% 19 years 96% — 20 years and over 100% Normal Retirement Eligibility 50 years of age and 20 years of service. .. Deferred Vested Eligibility On termination after completion of 10 years of service, a deferred benefit is payable at age 50 equal to the accrued benefit times the vesting percentage. Lump Sum Death Benefit Payment of an amount not to exceed $1,000 as a funeral benefit to the surviving spouse, or if no surviving spouse, the estate of the deceased Association member. During 1989 and as of December 31, 1989 the Association held no securities issued by the City -" or other related parties. IMMI ■ .. 49 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONT1NUED1 DECEMBER 31, 1989 10. Defined Benefit Pension Plan - Fridley Police Relief Association - A. Plan Description The City contributes to the Fridley Police Relief Association(Association),a single-employer public employee retirement system that acts as a common investment and administrator for the City's police officers. The City's payroll for employees covered by the Association for the year ended December 31, 1989 was $479,508; the City's total payroll was $5,210,737. Police officers of the City hired prior to December 15, 1975, are members of the Association. Police officers hired after December 15, 1975 are members of the PERA Public Employees Police and Fire Fund. Association members are entitled to the following benefits: Aqe and Service Retirement Eligibility 50 years of age and 10 years of service Amount For first 10 years of service, 15/75 of base pay. For each year in excess of 10, an additional 2/75 is added. For each year in excess of 20, an additional 1/75 is added up to a ••••1 maximum of 42/75 of base pay. Pay Used for Plan Purposes For benefit determination purposes, 'base pay' means the salary of a first grade patrolman for the second month of the previous fiscal year. For contribution purposes, it means the present base pay of a first grade patrolman. Disability Retirement Eligibility Disabled to the extent that member is no longer able to perform the duties of a police officer before being eligible for age and service retirement. Amount 36/75 of base pay. Member's Death while Active, or in Deferred Status or Retired Eligibility Spouse Legally married to member at least one year prior to separation from service and residing with member at time of death. Benefits terminate upon remarriage. Child Younger than age 18. _ Amount Spouse 18/75 of base pay. _ Child 6/75 of base pay per child. Children's maximum is 18/75 if spouse is receiving of 36/75 if no spouse is receiving. 50 CRY OF FRIDLEY. MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 10. Defined Benefit Pension Plan - Fridley Police Rebel Association (Continued) A Plan Description (Continued) Vested Deferred 10 years of service and separated before age 50. Maximum benefit is 40/75 of base pay. Payment beginning is deferred to attainment of age 50. Post-Retirement Adjustment(*Escalator) Each time base pay is changed, payments to all benefit recipients are simultaneously changed by the same percent that base pay is changed. (Exception - For members on age and service retirement with less than 20 years service, the maximum increase is 3% compounded annually. Also, applies to survivors of these retirants). Police officers who are members of the Association are required to pay 8 percent of their base pay to the Association; 75 percent of the member's contribution is refundable, without interest, if no benefit is payable upon separation of service. The City makes annual contributions to the relief association equal to the amount required by state statutes. B. Related Party Investments During 1989 and as of December 31, 1989, the Association held no securities issued by the City or other related parties. C. Funding Status and Progress The amount shown below as the'pension benefit obligation'is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases, estimated to be payable in the future as a result of employee service to date. The measure is the actuarial present value of credited projected benefits and is intended to (i) help users assess the plan's funding status on a going-concern basis. (ii) assess progress being made in accumulating sufficient assets to pay benefits when due,and(iii)allow for comparisons among public employees retirement plans. The measure is independent of the actuarial funding method used to determine contributions to the plan. The pension benefit obligation was determined as part of an actuarial valuation of the plan as of December 31, 1988. Significant actuarial assumptions used in determining the pension benefit obligation include (a) a rate of return on the investment of present and future assets of 5.0% per year compounded annually,(b)projected salary increases of 3.5%per year compounded annually, attributable to inflation, and (c) the assumption that benefits will increase 3.5% per year after retirement. Mal 51 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 10. Defined Benefit Pension Plan - Fridley Police Relief Association (Continued) C. Funding Status and Progress (Continued) As of December 31, 1988, 1987 and 1986, (actuarial report dates),the unfunded pension benefit obligation was determined as follows: 1988 1987 1986 — Pension Benefit Obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $3,751,992 $3,535,848 $3,377,784 Current employees-- Accumulated employee contributions including allocated investment income 362,910 355,539 319,741 Employer financed 1,864,066 1,828,518 1,646,571 — Total Pension Benefit Obligation 5,978,968 5,719,905 5,344,096 Net assets available for benefits, at cost (market value was$4,109,012 for 1986, $4,515,633 for 1987 and$4,818,301 for 1988) 4,838,092 4,472,027 3,914,659 — Unfunded Pension Benefit Obligation $1,140,876 $1,247,878 $1,429,437 Net assets available/Pension benefit obligation 80.92% 78.18% 73.25% Unfunded pension benefit obligation/ Annual covered payroll 218.33% 269.42% 319.39% Employer contributions/Annual covered payroll 47.24% 34.49% 52.76% No changes in actuarial assumptions or benefit provisions that would significantly affect the — valuation of the pension benefit obligation occurred during 1989. 52 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1988 10. Defined Benefit Pension Plan - Fridley Police Relief Association (Continued) D. Contributions Required and Contributions Made Financial requirements of the Association are determined on an actuarial basis using the entry age normal actuarial cost method. Normal cost is funded on a current basis. The unfunded actuarial accrued liability is to be funded by December 31, 2010. The City's minimum obligation is the financial requirement for the year less anticipated member contributions and state aids. Any additional payments by the City shall be used to amortize the unfunded liability of the Association. The funding strategy for normal cost and the unfunded actuarial accrued liability should provide sufficient resources to pay Association benefits on a timely basis. Total contributions to the Association in 1989 amounted to$113,032, of which$85,011 and $28,021 were made by the City and its police officers respectively. The contributed amounts were actuarially determined as described above and were based on an actuarial valuation as of December 31, 1988. $161,866 was received in state aids that were remitted to the Association. �- The contributions represent funding for normal cost$127,981 and the amortization of the unfunded actuarial accrued liability$100,891. Contributions made by the City and its police officers represent 51.5 percent and 5.8 percent, respectively, of covered payroll for the year. Significant actuarial assumptions used to compute pension contribution requirements are substantially the same as those to determine the standardized measure of the pension obligation. The computation of the pension contribution requirements for 1989 was based on the same actuarial assumptions, benefit provision, actuarial funding method, and other significant factors used to determine pension contribution requirements in previous years. E. Historical Trend Information Historical trend information related to the pension plan is presented in the Association's annual financial report. The information is presented to enable the reader to assess the progress made by the Association in accumulating sufficient assets to pay pension benefits as they become due. 11. Interfund Receivables and Payables Interfund receivables and payables at December 31, 1989 are as follows: Interfund Interfund Receivables Payables Due From/Due To: Special Revenue Fund - HRA Reimbursement Fund $10,374 $ Capital Projects Funds- - Civic Center Improvements 48,519 HRA Fund 62,548 _ Enterprise Funds Public Utilities 3,655 $62,548 $62,548 53 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1988 12. Reserved Fund Balances/Retained Earnings The following reservations have been made of various fund balances/retained earnings at December 31, 1989. Fund Balance — General Fund Reserved for: Encumbrances $648,378 Inventory 23,230 671,608 Debt Service Funds Reserved for Debt Service 16,907,951 — Capital Projects Funds Reserved for: — Construction 5,510,028 Total $23,089,587 — Retained Earnings — Enterprise Funds Public Utilities $1,756,113 Internal Service Funds Employee Benefits Fund Reserved for employee benefits 647,106 Self-Insurance Fund Reserved for contingencies 138,620 $785,726 $2,541,839 54 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 13. Designated Fund Balance The following designations have been made of various fund balances at December 31, 1989: General Fund: Working Capital $3,129,521 Subsequent Year's Expenditures 1,293,746 Contingencies 887,497 5,310,764 Special Revenue Funds: Cable TV Fund- Subsequent Year's Expenditures 9,192 Grant Management Fund- Subsequent Year's Expenditures 1,599 10,791 Capital Projects Funds: Capital Improvement Fund- Replacement of Fixed Assets 2,140,970 Park Improvement 806,988 Street Improvements 3,905,781 6,853,739 Total $12,175,294 55 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 14. Segment Information for Enterprise Funds The City maintains operating funds for Liquor and Utility (Water, Sewer, Storm Sewer Operations). Segment — information for the year ended December 31, 1989 is as follows: Total Enterprise — Liquor Utility Funds Sales(less cost of sales — of$1,929,794) $453,197 $ $453,197 Operating revenues 2,879,180 2,879,180 Operating expenses (424,278) (3,134,235) (3,558,513) Operating income (loss) 28,919 (255,055) (226,136) Non-operating revenues (expenses) - net 40,302 340,557 380,859 Income before operating transfers 69,221 85,502 154,723 Operating transfers from other funds 17,177 17,177 Operating transfers to other funds (10,000) (10,000) Net income $59,221 $102,679 $161,900 Depreciation expense included in operating expenses $24,124 $494,793 $518,917 Property and equipment- Additions 964,188 964,188 — Deletions (4,143) (12,317) (16,460) Working capital 769,559 5,444,797 6,214,356 Total assets 1,114,369 22,143,412 23,257,781 — Fund equity- Contributed 13,047,497 13,047,497 Retained earnings $999,042 $9,170,697 $10,169,739 56 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 _ 15. Deferred Compensation Plan The City offers its employees a deferred compensation plan established in accordance with Internal Revenue Code Section 457. The plan, available to all employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts,and all income attributable to those amounts, property,or rights are(until paid or made available to the employees or other beneficiary) solely the property and rights of the City, subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. It is the opinion of the City's legal counsel that the City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. Plan assets are $2,647,512 stated at market on December 31, 1989 and are shown in the financial statements as 'Other assets" in the agency funds with a corresponding credit to "Deposits payable". 16. Litigation The City had the usual and customary type of miscellaneous claims pending at year-end, mostly of a minor nature and usually all covered by insurance carried for that purpose. At the present time, there is no significant litigation pending not covered by the City's insurance. 17. Leases The City leases the property at 214 Mississippi from the Fridley Housing and Redevelopment Authority for a warehouse liquor store. The City and Housing and Redevelopment Authority have a lease with one - year options. Rental expense is $21,250 annually. 18. Prior Period Adjustment In 1989 the City transferred assets previously accounted for in the General Fixed Asset Account Group to the Public Utilities Fund. A summary of the restatement is as follows: Net Retained Contributed Income Earning Capital 1988 12/31/88 12/31/88 As previously reported $232,073 $7,658,413 $10,861,185 Adjustment for reclassification (96,700) 1,083,000 1,920,270 of assets As adjusted ($135,373) $8,741,413 $12,781,455 57 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1989 19. Subsequent Event — On March 1, 1990, the City issued the $9,485,000 General Obligation Tax Increment Refunding Bonds of 1990. The bonds were issued to advance refund the City's outstanding General Obligation Tax Increment Refunding Bonds, Series 1986, dated August 1, 1986. 20. Deficit Balances — The following funds had deficit balances at December 31, 1989: Capital Project Funds — Civic Center Improvements $ 372 Special Assessments 1,042,754 21. Residual Equity Transfer — During 1989, the City closed the Management Information Services Internal Service Fund. All remaining assets were transferred to the general fund and the General Fixed Asset account group as follows: — General Fund $523,058 General Fixed Asset Account Group 125,949 Total $649,007 — 58 GENERAL FUND The General Fund was established to account for the revenues and expenditures necessary to carry out basic governmental activities of the City, such as general government, public safety, and public works. Revenues are recognized by source, such as property taxes, licenses and permits, fines and forfeits, charges for services and state-shared taxes. General Fund expenditures are made primarily for current day to day operations and are recorded by functional classifications and by operating departments. This fund accounts for all financial transactions not accounted for in another fund. • Exhibit B-1 CITY OF FRIDLEY, MINNESOTA GENERAL FUND COMPARATIVE BALANCE SHEET December 31, 1989 and 1988 1989 1988 Assets Cash $966,659 $ Investments 4,639,706 6,503,889 Receivables: Accounts 1,821 1,463 Taxes- Unremitted 40,398 46,270 Delinquent 279,354 238,749 Special Assessments- Unremitted 153 281 Delinquent 5,882 5,424 Deferred 1,954 1,793 Interest 837,531 863,641 Due from other governments 41,140 50,923 Inventories, at cost 23,230 16,559 Total assets $6,837,828 $7,728,992 Liabilities and Fund Balance Liabilities: Advance from city's general account $ $859,821 Accounts payable 105,069 117,503 Deposits payable 6,847 13,306 Salaries payable 175,744 174,147 Deferred revenue 287,190 245,967 Due to other governments 490 53 Total liabilities 575,340 1,410,797 Fund balance: Reserve for encumbrances 648,378 233,332 Reserve for park construction 484,946 Reserve for inventory 23,230 16,559 Unreserved- - Designated for working capital 3,129,521 3,000,000 Designated for contingencies 887,497 Designated for subsequent year's expenditures 1,293,746 247,488 Designated for replacement of fixed assets 1,532,548 Undesignated 280,116 803,322 Total fund balance 6,262,488 6,318,195 Total liabilities and fund balance $6,837,828 $7,728,992 61 Exhibit B-2 - CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND - CHANGES IN FUND BALANCE- BUDGET AND ACTUAL Year Ended December 31, 1989 With Comparative Actual Amounts for Year Ended December 31, 1988 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual Revenues: Taxes and special assessments $2,983,863 $2,941,318 ($42,545) $2,806,081 Licenses and permits 310,117 411,168 101,051 321,065 - Intergovernmental revenue 3,337,612 3,444,418 106,806 2,888,424 Charges for services 162,923 158,663 (4,260) 160,255 Fines and forfeits 275,975 241,235 (34,740) 292,293 - Interest on investments 331,342 303,951 (27,391) 383,248 Miscellaneous 156,974 136,995 (19,979) 111,469 Total revenues 7,558,806 7,637,748 78,942 6,962,835 - Expenditures: Current- - General government 1,238,786 1,121,745 117,041 1,133,256 Public safety 3,039,815 3,030,507 9,308 2,741,465 Civic center 279,714 273,095 6,619 205,654 Public works 2,235,543 2,222,203 13,340 2,014,957 Recreation and naturalist 634,550 628,397 6,153 589,771 Capital outlay 524,917 485,721 39,196 495,313 Total expenditures 7,953,325 7,761,668 191,657 7,180,416 - Deficiency of revenues over expenditures (394,519) (123,920) 270,599 (217,581) Other financing sources(uses): - Operating transfers in 148,860 150,259 1,399 197,000 Operating transfers out (664,949) (605,104) 59,845 (518,155) Total other financing sources(uses) (516,089) (454,845) 61,244 (321,155) Deficiency of revenues and other financing sources over - expenditures and other financing uses (910,608) (578,765) 331,843 (538,736) Fund balance January 1 6,318,195 6,318,195 6,856,931 Residual Equity Transfers in 523,058 523,058 - Fund balance December 31 $5,407,587 $6,262,488 $854,901 $6,318,195 62 Exhibit B-3 - CITY OF FRIDLEY, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL Year Ended December 31, 1989 With Comparative Actual Amounts for Year Ended December 31, 1988 1989 Variance Favorable 1988 - Budget Actual (Unfavorable) Actual _ Taxes and special assessments: Current ad valorem taxes $2,895,000 $2,874,288 ($20,712) $2,639,599 Delinquent ad valorem taxes 45,000 31,474 (13,526) 140,144 Penalties and interest 36,274 29,927 (6,347) 20,795 _ Forfeited sale-taxes 2,787 4,293 1,506 3,889 Special assessments 4,802 1,336 (3,466) 1,654 Total taxes and special _ assessments 2,983,863 2,941,318 (42,545) 2,806,081 Licenses and permits - Licenses- Contractor 13,236 17,970 4,734 14,965 Business 77,280 76,967 (313) 75,622 All other 32,457 32,734 277 31,898 Permits 187,144 283,497 96,353 198,580 Total licenses and permits 310,117 411,168 101,051 321,065 Intergovernmental revenue: Civil defense 5,078 5,078 6,274 - State maintenance aid 126,572 174,446 47,874 126,572 State credits 574,430 605,506 31,076 600,672 Local government aid 2,381,484 2,381,414 (70) 1,900,802 Other state grants 21,359 44,207 22,848 27,749 Police and fire pension 233,767 233,767 226,355 Total intergovernmental revenue 3,337,612 3,444,418 106,806 2,888,424 Charges for services: General government 18,535 11,750 (6,785) 10,852 - Public safety 20,383 22,386 2,003 22,535 Conservation of health 4,005 3,115 (890) 3,136 Recreation 120,000 121,412 1,412 123,732 - Total charges for services 162,923 158,663 (4,260) 160,255 Fine and forfeits 275,975 241,235 (34,740) 292,293 Interest on investments 331,342 303,951 (27,391) 383,248 (Continued) 63 Exhibit B-3 Continued CITY OF FRIDLEY, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL Year Ended December 31, 1989 With Comparative Actual Amounts for Year Ended December 31, 1988 1989 Variance - Favorable 1988 Budget Actual (Unfavorable) Actual Miscellaneous revenue: Rent income $4,566 $6,865 $2,299 $5,175 Sale of property 33,716 34,027 311 41,720 _ Donations 99,916 67,539 (32,377) 51,677 Miscellaneous refunds 18,776 28,564 9,788 12,897 Total miscellaneous revenue 156,974 136,995 (19,979) 111,469 Total revenues 7,558,806 7,637,748 78,942 6,962,835 Other financing sources: -' Operating transfers in - Municipal State Aid Fund 138,860 138,860 147,000 Special Assessment Cap. Projects 1,399 1,399 Liquor Fund 10,000 10,000 50,000 Total other financing sources 148,860 150,259 1,399 197,000 Total revenues and other financing sources $7,707,666 $7,788,007 $80,341 $7,159,835 • 64 Exhibit B-4 CITY OF FRIDLEY, MINNESOTA GENERAL FUND SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES- BUDGET AND ACTUAL Year Ended December 31, 1989 With Comparative Actual Amounts for Year Ended December 31, 1988 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual General government: Mayor and Council - Personal services $93,338 $86,123 $7,215 $89,861 Supplies and other charges 71,457 64,122 7,335 85,398 _ 164,795 150,245 14,550 175,259 Planning commission - Personal services 30,964 16,484 14,480 22,010 .. Supplies and other charges 6,855 3,336 3,519 4,329 37,819 19,820 17,999 26,339 Other commissions- - Personal services 4,615 2,948 1,667 3,192 Supplies and other charges 18,922 18,920 2 5,056 23,537 21,868 1,669 8,248 City manager- Personal services 154,137 154,137 171,042 Supplies and other charges 62,531 50,002 12,529 55,260 216,668 204,139 12,529 226,302 Personnel - - Personal services 58,338 58,332 6 51,144 Supplies and other charges 14,611 7,234 7,377 5,286 72,949 65,566 7,383 56,430 Legal - Personal services 5,286 317 4,969 2,243 Supplies and other charges 178,104 153,110 24,994 134,104 183,390 153,427 29,963 136,347 Elections- .. Personal services 3,848 3,841 7 6,472 Supplies and other charges 13,750 11,721 2,029 15,971 17,598 15,562 2,036 22,443 (Continued) • 65 Exhibit B-4 Continued CITY OF FRIDLEY, MINNESOTA GENERAL FUND - SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL Year Ended December 31, 1989 With Comparative Actual Amounts for Year Ended December 31, 1988 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual General government(continued): Accounting- - Personal services $265,622 $265,622 $ $232,723 Supplies and other charges 92,844 68,992 23,852 94,494 358,466 334,614 23,852 327,217 Assessing- Personal services 133,856 133,661 195 130,845 Supplies and other charges 29,708 22,843 6,865 23,826 163,564 156,504 7,060 154,671 - Total general government 1,238,786 1,121,745 117,041 1,133,256 Public safety: Police- Personal services 2,129,273 2,129,213 60 1,917,240 - Supplies and other charges 265,417 265,404 13 227,104 2,394,690 2,394,617 73 2,144,344 Fire - Personal services 502,147 502,147 458,773 Supplies and other charges 104,107 95,013 9,094 85,855 - 606,254 597,160 9,094 544,628 Civil defense- - Personal services 34,994 34,942 52 49,125 Supplies and other charges 3,877 3,788 89 3,368 38,871 38,730 141 52,493 - Total public safety 3,039,815 3,030,507 9,308 2,741,465 Civic center: Personal services 58,530 52,000 6,530 51,503 - Supplies and other charges 221,184 221,095 89 154,151 Total civic center 279,714 273,095 6,619 205,654 (Continued) 66 Exhibit B-4 Continued CITY OF FRIDLEY, MINNESOTA GENERAL FUND SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL Year Ended December 31, 1989 With Comparative Actual Amounts for Year Ended December 31, 1988 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual Public works: Code enforcement- Personal services $146,480 $146,478 $2 $150,786 Supplies and other charges 45,494 40,625 4,869 36,187 .. 191,974 187,103 4,871 186,973 Planning- Personal services 145,335 141,741 3,594 107,395 Supplies and other charges 89,500 89,286 214 30,459 234,835 231,027 3,808 137,854 Engineering- Personal services 164,048 164,038 10 136,203 Supplies and other charges 36,303 31,738 4,565 32,420 200,351 195,776 4,575 168,623 Public works and Parks- Personal services 938,365 938,349 16 897,630 Supplies and other charges 670,018 669,948 70 623,877 1,608,383 1,608,297 86 1,521,507 Total public works 2,235,543 2,222,203 13,340 2,014,957 Naturalist and Recreation: _ Naturalist- Personal services 142,478 142,454 24 132,889 Supplies and other charges 49,812 49,802 10 54,287 192,290 192,256 34 187,176 Recreation - Personal services 295,680 295,676 4 276,209 Supplies and other charges 146,580 140,465 6,115 126,386 442,260 436,141 6,119 402,595 Total recreation and naturalist 634,550 628,397 6,153 589,771 (Continued) 67 Exhibit B-4 Continued CITY OF FRIDLEY, MINNESOTA GENERAL FUND SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES- BUDGET AND ACTUAL Year Ended December 31, 1989 With Comparative Actual Amounts for Year Ended December 31, 1988 1989 Variance Favorable 1988 -' Budget Actual (Unfavorable) Actual Capital outlay expenditures- - City manager $2,100 $ $2,100 $ Accounting 1,000 410 590 1,899 Police 137,059 116,716 20,343 110,233 Fire 33,589 26,806 6,783 45,385 - Civil defense 4,300 3,968 332 6,755 Civic center 21,615 18,728 2,887 3,040 Code enforcement 647 647 Planning 3,466 1,449 2,017 Engineering 1,469 Public works 283,706 283,432 274 288,992 - Naturalist 28,035 26,334 1,701 34,119 Recreation 9,400 7,231 2,169 3,421 Total capital outlay 524,917 485,721 39,196 495,313 - Total expenditures 7,953,325 7,761,668 191,657 7,180,416 - Other financing uses: Operating transfers out- Capital Improvement Fund 514,949 514,949 Civic Center Improvement Fund 467,452 Special Assessment Capital Projects Fund 150,000 90,155 59,845 Special Assessment Debt Service Fund 50,703 _ Total other financing uses 664,949 605,104 59,845 518,155 Total expenditures and other financing uses $8,618,274 $8,366,772 $251,502 $7,698,571 68 • 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. Municipal State Aid Fund This fund is used to account for the City's allocation of the state collected highway user tax. The allocation is based on both population and the need for construction of state aid streets in the City. Transfers are made from this fund to the Special Assessment Capital Projects Fund for current year road construction activity. At year end, the equity in this fund was transferred to the Capital Improvement Capital Projects Fund. 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. Grant Management Fund This 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 be spent on specific activities outlined in the grant. 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. CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 1989 With Comparative Totals for December 31, 1988 Municipal State Cable Grant Aid TV Management Assets Cash $ $ $ — Investments 66,344 Accounts receivable 18,265 Due from other funds Due from other governments 33,588 Total assets $0 $84,609 $33,588 -- Liabilities and Fund Balance —' Liabilities: Advance from city's general account $ $ $17,029 — Accounts payable 10,425 13,783 Deposits payable 10,000 Salaries payable 722 1,177 — Due to other governments Total liabilities 0 21,147 31,989 Fund balance: Unreserved - Designated for susequent — year's expenditures 9,192 1,599 Undesignated 54,270 Total fund balance 0 63,462 1,599 — Total liabilities and fund balance $0 $84,609 $33,588 -- 70 Exhibit C-1 — HRA Totals Reimbursement 1989 1988 — $ $ $129,273 66,344 1,345,342 18,265 15,312 10,374 10,374 15,190 _ 33,588 89,172 $10,374 $128,571 $1,594,289 $3,510 $20,539 $69,824 — 4,693 28,901 23,142 10,000 2,171 4,070 3,487 2,029 10,374 63,510 98,482 10,791 10,133 54,270 1,485,674 0 65,061 1,495,807 — $10,374 $128,571 $1,594,289 71 CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended December 31, 1989 With Comparative Totals for Year Ended December 31, 1988 — Municipal State Cable Grant Aid TV Management Revenues: Licenses and permits $ $66,024 $ — Intergovernmental revenue 1,226,039 112,341 Interest on investments 158,930 3,815 Miscellaneous 15 — Total revenues 1,384,969 69,854 112,341 Expenditures: -" Current- General government 61,643 111,340 Capital outlay 581 Total expenditures 0 62,224 111,340 Excess of revenues over expenditures 1,384,969 7,630 1,001 — Other financing (uses): Operating transfers out (249,591) — Total other financing(uses) (249,591) 0 0 Excess(deficiency)of revenues — over expenditures and other financing uses 1,135,378 7,630 1,001 Fund balance January 1 1,439,377 55,832 598 Residual equity transfer out (2,574,755) — Fund balance December 31 $0 $63,462 $1,599 72 — Exhibit C-2 HRA Totals Reimbursement 1989 1988 $ $66,024 $57,488 _ 154,249 1,492,629 408,690 162,745 129,273 15 60,118 — 154,249 1,721,413 655,569 154,249 327,232 377,234 581 138,231 — 154,249 327,813 515,465 0 1,393,600 140,104 (249,591) (205,683) -" 0 (249,591) (205,683) 1,144,009 (65,579) — 1,495,807 1,561,386 (2,574,755) $0 $65,061 $1,495,807 73 Exhibit C-3 CITY OF FRIDLEY, MINNESOTA MUNICIPAL STATE AID SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1989 and 1988 1989 1988 Assets Cash $ $120,050 Investments 1,301,660 Due from other governments 17,667 — Total assets $ $1,439,377 — Fund Balance Fund balance: Unreserved- undesignated $ $1,439,377 74 Exhibit C-4 — CITY OF FRIDLEY, MINNESOTA MUNICIPAL STATE AID SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND — CHANGES IN FUND BALANCE- BUDGET AND ACTUAL Year Ended December 31, 1989 With Comparative Amounts for Year Ended December 31, 1988 1989 — Variance Favorable 1988 Budget Actual (Unfavorable) Actual Revenues: — Intergovernmental - Minnesota state aid $1,226,039 $1,226,039 $ $12,206 Interest on investments 158,930 158,930 120,050 Total revenues 1,384,969 1,384,969 0 132,256 Other financing uses: — Operating transfers out- General Fund (138,860) (138,860) (147,000) Special Assessment Capital — Projects Fund (110,731) (110,731) (17,716) Total other financing uses (249,591) (249,591) 0 (164,716) — Excess(deficiency)of revenues over expenditures and other financing uses 1,135,378 1,135,378 (32,460) Fund balance January 1 1,439,377 1,439,377 1,471,837 — Residual equity transfer out (2,574,755) (2,574,755) Fund balance December 31 $0 $0 $0 $1,439,377 75 Exhibit C-5 CITY OF FRIDLEY, MINNESOTA — CABLE TV SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1989 and 1988 1989 1988 Assets Cash $10,000 $9,223 — Investments 56,344 43,682 Accounts receivable 18,265 15,312 Total assets $84,609 $68,217 Liabilities and Fund Balance Liabilities: Accounts payable $10,425 $11,608 Deposits payable 10,000 Salaries payable 722 777 Total liabilities 21,147 12,385 Fund balance: Unreserved - Designated for subsequent year's expenditures 9,192 9,535 Undesignated 54,270 46,297 — Total fund balance 63,462 55,832 Total liabilities and fund balance $84,609 $68,217 76 Exhibit C-6 CITY OF FRIDLEY, MINNESOTA CABLE TV SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL Year Ended December 31, 1989 With Comparative Amounts for Year Ended December 31, 1988 1989 Variance -- Favorable 1988 Budget Actual (Unfavorable) Actual Revenues: Licenses-franchise fee $54,440 $66,024 $11,584 $57,488 Interest on investments 2,000 3,815 1,815 9,223 Donations 60,000 Miscellaneous 15 15 Total revenues 56,440 69,854 13,414 126,711 Expenditures: Current General government- Personal services 35,255 22,957 12,298 26,098 Supplies and other charges 38,720 38,686 34 42,718 Capital outlay 83,513 581 82,932 52,770 Total expenditures 157,488 62,224 95,264 121,586 Excess(deficiency)of revenues over expenditures (101,048) 7,630 108,678 5,125 Other financing uses: Operating transfer out Civic Center Improvement Capital Projects Fund (40,967) Total other financing uses 0 0 0 (40,967) Excess deficiency of revenues over expenditures and a other financing uses (101,048) 7,630 108,678 (35,842) Fund balance January 1 55,832 55,832 91,674 Fund balance December 31 ($45,216) $63,462 $108,678 $55,832 77 Exhibit C-7 CITY OF FRIDLEY, MINNESOTA — GRANT MANAGEMENT SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1989 and 1988 1989 1988 — Assets Due from other goverments $33,588 $71,505 Liabilities and Fund Balance Liabilities: — Advance from city's general account $17,029 $59,900 Accounts payable 13,783 7,926 Salaries payable 1,177 1,052 — Due to other governments 2,029 Total liabilities 31,989 70,907 Fund balance: Unreserved - Designated for subsequent year's expenditures 1,599 598 Total liabilities and fund balance $33,588 $71,505 78 — Exhibit C-8 CITY OF FRIDLEY, MINNESOTA GRANT MANAGEMENT SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL Year Ended December 31, 1989 With Comparative Amounts for Year Ended December 31, 1988 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental revenue - Federal $97,542 $81,647 ($15,895) $142,902 State 18,813 30,694 11,881 47,077 Donations 118 Total revenues 116,355 112,341 (4,014) 190,097 Expenditures: Current General government- — Personal services 42,694 42,674 20 42,311 Supplies and other charges 68,686 68,666 20 59,602 Capital outlay 4,975 4,975 85,461 — Total expenditures 116,355 111,340 5,015 187,374 Excess(deficiency)of revenues over expenditures and other — financing sources 1,001 1,001 2,723 — Fund balance January 1 598 598 (2,125) Fund balance December 31 $598 $1,599 $1,001 $598 79 Exhibit C-9 CITY OF FRIDLEY, MINNESOTA HRA REIMBURSEMENT SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1989 and 1988 -- 1989 1988 -- Assets Due from other funds $10,374 $15,190 Liabilities and Fund Balance Liabilities: — Advance from city's general account $3,510 $9,924 Accounts payable 4,693 3,608 Salaries payable 2,171 1,658 — Total liabilities 10,374 15,190 Fund balance: — Unreserved - undesignated Total liabilities and fund balance $10,374 $15,190 -- 80 Exhibit C-10 CITY OF FRIDLEY, MINNESOTA HRA REIMBURSEMENT SPECIAL REVENUE FUND — STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL Year Ended December 31, 1989 With Comparative Amounts for Year Ended December 31, 1988 — _ 1989 Variance Favorable 1988 Budget Actual (Unfavorable) Actual — Revenues: Intergovernmental revenue - — Housing Redevelopment Authority $154,249 $154,249 $ $206,505 Expenditures: Current General government- Personal services 74,810 74,810 107,147 Supplies and other charges 79,439 79,439 99,358 Total expenditures 154,249 154,249 0 206,505 — Excess of revenues over expenditures 0 0 0 — Fund balance January 1 0 0 0 Fund balance December 31 $0 $0 $0 $0 81 DEBT SERVICE FUNDS Debt Service Funds are used to finance and account for the payment of principal and interest on all general obligation debt excluding those accounted for in the proprietary funds. Special Assessment Fund This 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 be benefited from such improvements. HRA Fund This fund services the debt of the tax increment bonds. Tax increment money is used to service the debt on redevelopment related bonds. Exhibit D-1 CITY OF FRIDLEY, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1989 With Comparative Totals for December 31, 1988 Special Totals Assessment HRA 1989 1988 Assets Cash $ $ $ $640,017 Deposits with trustee 2,358,700 9,218,200 11,576,900 12,103,900 Investments 9,646,823 2,120,365 11,767,188 10,589,463 Receivables: _ Special Assessments- Unremitted 13,448 13,448 15,714 Delinquents 161,179 161,179 194,842 _ Deferred 2,374,263 2,374,263 2,686,070 Due from other funds 9,578 Total assets $14,554,413 $11,338,565 $25,892,978 $26,239,584 Liabilities and Fund Balance Liabilities: Advance from city's general account $ $ $ $1,033 Accounts payable 981 1,615 2,596 8,473 Deferred revenue 2,535,442 2,535,442 2,880,912 Due to other funds 9,578 Total liabilities 2,536,423 1,615 2,538,038 2,899,996 Fund balance: Reserved for debt service 5,571,001 11,336,950 16,907,951 17,451,900 Unreserved - undesignated 6,446,989 6,446,989 5,887,688 Total fund balance 12,017,990 11,336,950 23,354,940 23,339,588 Total liabilities and fund balance $14,554,413 $11,338,565 $25,892,978 $26,239,584 83 Exhibit D-2 CITY OF FRIDLEY, MINNESOTA DEBT SERVICE FUNDS — COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended December 31, 1989 With Comparative Totals for Year Ended December 31, 1988 Special Totals Assessment HRA 1989 1988 Revenues: Special Assessments $908,580 $ $908,580 $890,882 — Interest on investments 635,125 121,846 756,971 898,826 Total revenues 1,543,705 121,846 1,665,551 1,789,708 — Expenditures: Debt service- Principal retirement 585,500 1,055,000 1,640,500 1,380,000 Interest and fiscal charges 477,507 1,063,412 1,540,919 1,372,080 Total expenditures 1,063,007 2,118,412 3,181,419 2,752,080 Excess(deficiency)of revenues over expenditures 480,698 (1,996,566) (1,515,868) (962,372) Other financing sources(uses): Operating transfers in (out)- Special Assessments Capital Projects Funds (443,851) HRA Capital Projects Fund 1,531,220 1,531,220 1,041,897 Total other financing sources 0 1,531,220 1,531,220 598,046 Excess(deficiency)of revenues and other financing sources over expenditures 480,698 (465,346) 15,352 (364,326) Fund balance January 1 11,537,292 11,802,296 23,339,588 25,960,999 Residual equity transfer out (2,257,085) Fund balance December 31 $12,017,990 $11,336,950 $23,354,940 $23,339,588 84 CAPITAL PROJECTS FUNDS Capital Projects Funds are used to account for the resources expended to acquire permanent or long term assets. These funds are established to provide special accounting for bond proceeds, grants and contributions designated for the acquisition of capital assets. Capital Projects Funds provide a formal mechanism which enables administrators to ensure that revenues designated for specific purposes are properly used. Capital Improvement Fund This 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. Civic Center Improvement Fund This fund was established to account for the revenues and expenditures associated with the remodeling of the Fridley Civic Center. Fire Buildings Fund This fund is used to account for the revenues and expenditures that are related to the construction and remodeling of the Fire buildings. Special Assessment Fund This fund is used to account for the construction of public improvements, such as residential streets, sidewalks, and storm sewers or for the provision of services which are to be paid for primarily by the benefited property owner. HRA Fund This fund receives revenues from general property taxes in the form of tax increment and also from land sale proceeds. A board of commissioners is appointed by the City Council and they use these funds to purchase land in the City of Fridley for resale to developers of commercial facilities. CITY OF FRIDLEY, MINNESOTA — CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET December 31, 1989 — With Comparative Totals for December 31, 1988 Civic Capital Center Fire — Improvements Improvements Buildings Assets Cash $ . $ $ Investments 6,925,028 1,050,233 21,656 Receivables: . -, Accounts 800 Taxes- Unremitted 895 Delinquent 5,742 Specials- Unremitted Delinquent Deferred Mortgage - — Delinquent Deferred Interest Due from other funds 48,519 Due from other governments Total assets $6,932,465 $1,098,752 $21,656 — Liabilities and Fund Balance Liabilities: Advance from city's general account $ $759,249 $8,793 Accounts payable 21,375 — Deposits payable Contracts payable 72,984 318,500 12,863 Salaries payable — Deferred revenue 5,742 Due to other funds Due to other governments Total liabilities 78,726 1,099,124 21,656 Fund balance: — Reserved for construction (372) Unreserved - Designated for fixed asset replacement 2,140,970 — Designated for park improvements 806,988 Designated for street improvements 3,905,781 Undesignated — Total fund balance 6,853,739 (372) 0 Total liabilities and fund balance $6,932,465 $1,098,752 $21,656 86 Exhibit E-1 Special Totals - Assessments HRA 1989 1988 - $ $700 $700 $489,486 158,325 5,523,119 13,678,361 13,055,800 - 800 20,174 21,069 2,380 - 635,912 641,654 598,478 45 45 61 - 2,200 2,200 2,030 129,592 129,592 129,971 15,480 990,000 990,000 948,000 197,903 197,903 190,039 48,519 307,093 19,910 $290,162 $7,367,808 $15,710,843 $15,758,728 $887,109 $ $1,655,151 $1,064,490 21,658 7,556 50,589 138,986 - 98,743 98,743 116,488 27,516 20,788 452,651 724,835 783 783 1,259 - 131,792 1,625,912 1,763,446 1,693,959 62,548 62,548 322,283 165,315 140,604 305,919 233,085 - 1,332,916 1,857,408 4,389,830 4,295,385 - 5,510,400 5,510,028 7,906,253 2,140,970 2,327,145 - 806,988 59,699 3,905,781 673,798 (1,042,754) (1,042,754) 496,448 - (1,042,754) 5,510,400 11,321,013 11,463,343 $290,162 $7,367,808 $15,710,843 $15,758,728 87 CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND — CHANGES IN FUND BALANCE Year Ended December 31, 1989 With Comparative Totals for Year Ended December 31, 1988 — Civic — Capital Center Fire Improvements Improvements Buildings Revenues: Taxes- Tax increment $ $ $ — Current ad valorem taxes 71,346 Delinquent ad valorem taxes 758 Special assessments — Total taxes 72,104 0 0 Intergovernmental revenue - — State credits 15,373 State grant Total intergovernmental revenue 15,373 0 0 — Interest on investments 154,781 423 Miscellaneous revenue - Rental income Donations 54,146 — Other 800 Total miscellaneous revenue 54,946 0 0 — Total revenues 297,204 0 423 (Continued) 88 Exhibit E-2 Special Totals Assessments H RA 1989 1988 _ $ $2,342,665 2,342,665 $1,501,733 71,346 68,122 758 3,551 1,088,472 1,088,472 26,151 1,088,472 2,342,665 3,503,241 1,599,557 15,200 30,573 44,034 1,100 1,100 402,890 1,100 15,200 31,673 446,924 190,947 520,915 867,066 996,385 29,050 29,050 41,700 120,000 174,146 4,441 4,827 10,068 25,599 124,441 33,877 213,264 67,299 1,404,960 2,912,657 4,615,244 3,110,165 89 CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECTS FUNDS — COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE(Continued) Year Ended December 31, 1989 With Comparative Totals for Year Ended December 31, 1988 Civic Capital Center Fire Improvements Improvements Buildings — Expenditures: Current- General government $2,850 $76,257 $12,847 Capital outlay 186,536 2,375,619 234,214 Total expenditures 189,386 2,451,876 247,061 Excess(deficiency)of revenues over expenditures 107,818 (2,451,876) (246,638) — Other financing sources (uses): Operating transfers in (out) - General Fund 514,949 Municipal State Aid Fund Cable T.V. Fund — Special Assessment Debt Service Fund HRA Debt Service Fund Capital Improvement Fund 260,656 Civic Center Improvements (1,050,233) 1,050,233 — Fire Buildings (260,656) Special Assessment Capital Projects Fund (14,018) Public Utilities fund Total other financing sources(uses) (795,940) 1,050,233 246,638 — Excess(deficiency) of revenues and other financing sources over expenditures and other financing uses (688,122) (1,401,643) Fund balance January 1 2,386,844 1,401,271 Residual equity transfers in (out) 5,155,017 Fund balance December 31 $6,853,739 ($372) $0 90 Exhibit E-2 Continued Special Totals Assessments HRA 1989 1988 $ $472,582 $564,536 $728,438 1,234,026 1,903,437 5,933,832 4,108,242 1,234,026 2,376,019 6,498,368 4,836,680 170,934 536,638 (1,883,124) (1,726,515) 88,756 603,705 518,155 110,731 110,731 17,716 40,967 443,851 (1,531,220) (1,531,220) (1,041,897) 260,656 1,801,596 (1,455,805) 14,018 (246,638) (345,791) (14,018) (17,177) (17,177) (4,159) 196,328 (1,531,220) (833,961) (25,367) 367,262 (994,582) (2,717,085) (1,751,882) 1,170,246 6,504,982 11,463,343 11,358,140 (2,580,262) 2,574,755 1,857,085 ($1,042,754) $5,510,400 $11,321,013 $11,463,343 91 ENTERPRISE FUNDS Enterprise Funds are used to account for the operations of self-supporting governmental activities which render services or goods to the public. The accounting records are maintained on an accrual basis. The reporting for enterprise funds is similar to comparable private enterprises. Creditors, legislators or the general public can evaluate the performance of a municipal enterprise on the same basis as they can the performance of investor-owned enterprises. Liquor Fund This fund accounts for the operation of two off-sale liquor establishments. Public Utilities Fund This fund accounts for the operations of the City-owned sewer and water systems. Exhibit F-1 CITY OF FRIDLEY, MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET - December 31, 1989 With Comparative Totals for December 31, 1988 Public Totals Liquor Utilities 1989 1988 _ Assets Current Assets: Cash $4,300 $220 $4,520 $378,247 - Investments 589,861 4,763,424 5,353,285 4,556,248 Accounts receivable 727,701 727,701 623,075 Due from other funds 3,655 3,655 - Due from other governments 17,516 17,516 16,843 Inventories, at cost 272,943 983 273,926 366,302 Prepaid expense 17,782 126,516 144,298 128,404 - Total current assets 884,886 5,640,015 6,524,901 6,069,119 Long-term receivable - Metro Waste Control Commission 230,145 230,145 249,305 Property and equipment, at cost: Property and equipment 464,574 22,525,603 22,990,177 22,042,449 - Less: accumulated depreciation (235,091) (5,982,351) (6,217,442) (5,671,332) Net property and equipment 229,483 16,543,252 16,772,735 16,371,117 - Total assets $1,114,369 $22,413,412 $23,527,781 $22,689,541 ..- Liabilities and Fund Equity Current liabilities: Accounts payable $83,166 $91,370 $174,536 $127,408 Contracts payable 11,092 11,092 5,000 Salaries payable 9,987 20,456 30,443 27,786 - Due to other governments 22,174 72,300 94,474 66,658 Total current liabilities 115,327 195,218 310,545 226,852 - Fund equity: Contributed capital 13,047,497 13,047,497 12,781,455 Retained earnings - Reserved 1,756,113 1,756,113 Unreserved 999,042 7,414,584 8,413,626 9,681,234 Total retained earnings 999,042 9,170,697 10,169,739 9,681,234 Total fund equity 999,042 22,218,194 23,217,236 22,462,689 Total liabilities and fund equity $1,114,369 $22,413,412 $23,527,781 $22,689,541 93 Exhibit F-2 CITY OF FRIDLEY, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Year Ended December 31.1989 With Comparative Totals for Year Ended December 31, 1988 Public Totals Liquor Utilites 1989 1988 Sales and cost of sales: Sales $2,382,991 $ $2,382,991 $2,439,148 Cost of sales 1,929,794 1,929,794 1,992,782 Gross profit 453,197 0 453,197 446,366 Operating revenues: Water sales and sewer rents 2,767,449 2,767,449 2,618,230 Other 111,731 111,731 107,512 Total operating revenues 0 2,879,180 2,879,180 2,725,742 - Operating expenses: Personal services 262,887 597,408 860,295 803,302 - Supplies and other charges- Disposal charges 1,382,052 1,382,052 1,306,604 Other 137,267 659,982 797,249 744,072 - Depreciation 24,124 494,793 518,917 491,571 Total operating expenses 424,278 3,134,235 3,558,513 3,345,549 Operating income(loss) 28,919 (255,055) (226,136) (173,441) Non-operating revenues(expenses): - Interest on investments 36,902 341,182 378,084 384,750 Debt service (380) Loss on reclassification of fixed assets (136) (625) (761) - Other 3,536 3,536 3,759 Total non-operating revenues(expenses) 40,302 340,557 380,859 388,129 Income before operating transfers 69,221 85,502 154,723 214,688 Operating transfers in (out): General Fund (10,000) (10,000) (50,000) Special Assessment Capital Projects Fund 17,177 17,177 4,159 - Total operating transfers (10,000) 17,177 7,177 (45,841) Net income 59,221 102,679 161,900 168,847 Credit arising from transfer of depreciation on contributed capital 326,605 326,605 322,399 Retained earnings January 1 939,821 8,741,413 9,681,234 9,189,988 Retained earnings December 31 $999,042 $9,170,697 $10,169,739 $9,681,234 94 Exhibit F-3 CITY OF FRIDLEY, MINNESOTA - ENTERPRISE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION Year Ended December 31, 1989 With Comparative Totals for Year Ended December 31, 1988 Public Totals _ Liquor Utilities 1989 1988 Sources of working capital: _ Operations: Net income for the year $59,221 $102,679 $161,900 $168,847 Items not requiring working capital - Depreciation 24,124 494,793 518,917 491,571 Working capital provided by operations 83,345 597,472 680,817 660,418 Decrease in long term receivable 19,160 19,160 22,826 Contributed capital 635,539 635,539 18,467 - Loss on reclassfication of fixed assets 136 625 761 Net decrease in restricted assets 20,000 Total sources of working capital 83,481 1,252,796 1,336,277 721,711 Uses of working capital: Acquisition of property and equipment 964,188 964,188 1,111,158 - Increase (decrease) in working capital $83,481 $288,608 $372,089 ($389,447) - Elements of increase (decrease) in working capital: Cash ($35,455) ($338,272) ($373,727) $374,927 - Investments 190,245 606,792 797,037 (997,580) Accounts receivable 104,626 104,626 79,148 Due from other funds 3,655 3,655 - Due from other governments 673 673 (88,249) Inventories, at cost (89,466) (2,910) (92,376) (33,553) Prepaid expense (209) 16,103 15,894 1,903 - Accounts payable 18,241 (65,369) (47,128) 27,868 Contracts payable (6,092) (6,092) 274,917 Salaries payable (641) (2,016) (2,657) (9,588) - Due to other governments 766 (28,582) (27,816) (39,240) Bonds payable 20,000 - Increase(decrease) in working capital $83,481 $288,608 $372,089 ($389,447) a 95 Exhibit F-4 - CITY OF FRIDLEY, MINNESOTA LIQUOR ENTERPRISE FUND COMPARATIVE BALANCE SHEET December 31, 1989 and 1988 - 1989 1988 Assets Current Assets: Cash $4,300 $39,755 Investments 589,861 399,616 Inventories, at cost 272,943 362,409 Prepaid expense 17,782 17,991 Total current assets 884,886 819,771 Property and equipment, at cost: Land 66,961 66,961 - Buildings 174,116 174,116 Improvements other than building 18,677 18,677 Machinery and equipment 204,820 208,963 - 464,574 468,717 Less: accumulated depreciation (235,091) (214,974) Net property and equipment 229,483 253,743 Total assets $1,114,369 $1,073,514 Liabilities and Fund Equity Current Liabilities: - Accounts payable $83,166 $101,407 Salaries payable 9,987 9,346 Due to other governments 22,174 22,940 - Total current liabilities 115,327 133,693 Fund equity: - Retained earnings - unreserved 999,042 939,821 Total current liabilities and fund equity $1,114,369 $1,073,514 -- 96 Exhibit F-5 CITY OF FRIDLEY, MINNESOTA LIQUOR ENTERPRISE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Years Ended December 31, 1989 and 1988 1989 1988 Sales and cost of sales: Sales $2,382,991 $2,439,148 Cost of sales 1,929,794 1,992,782 Gross profit 453,197 446,366 Operating expenses: Selling: Personal services 165,943 152,773 Supplies and other charges 21,897 16,571 Total selling expenses 187,840 169,344 Overhead: Supplies and other charges 100,243 117,020 Depreciation 24,124 25,888 Total overhead expense 124,367 142,908 Administrative: Personal services 96,944 79,417 Supplies and other charges 15,127 10,437 Total adminstrative expense 112,071 89,854 Total operating expenses 424,278 402,106 Operating income 28,919 44,260 Non-operating revenues: Interest on investments 36,902 35,455 Loss on reclassification of fixed assets (136) Other 3,536 3,759 Total non-operating revenues 40,302 39,214 Income before operating transfers 69,221 83,474 Operating transfers out: _ General Fund (10,000) (50,000) Total operating transfers (10,000) (50,000) Net income 59,221 33,474 Retained earnings January 1 939,821 906,347 Retained earnings December 31 $999,042 $939,821 97 Exhibit F-6 CITY OF FRIDLEY, MINNESOTA — LIQUOR ENTERPRISE FUND COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION Years Ended December 31, 1989 and 1988 1989 1988 _ Sources of working capital: Operations: Net income for the year $59,221 $33,474 Items not requiring working capital - Depreciation 24,124 25,888 Working capital provided by operations 83,345 59,362 Loss on reclassification of assets 136 Total sources of working capital 83,481 59,362 Increase in working capital $83,481 $59,362 — Elements of increase (decrease) in working capital: Cash ($35,455) $36,555 Investments 190,245 54,313 Inventories, at cost (89,466) (33,546) Prepaid expense (209) (12,045) Accounts payable 18,241 17,877 Salaries payable (641) (4,238) Due to other governments 766 446 — Increase in working capital $83,481 $59,362 98 Exhibit F-7 CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITY ENTERPRISE FUND COMPARATIVE BALANCE SHEET December 31, 1989 and 1988 1989 1988 Assets Current assets: ... Cash $220 $338,492 Investments 4,763,424 4,156,632 Accounts receivable 727,701 623,075 Due from other funds 3,655 Due from other governments 17,516 16,843 Inventories, at cost 983 3,893 Prepaid expense 126,516 110,413 Total current assets 5,640,015 5,249,348 Long-term receivable - Metropolitan Waste Control Commission 230,145 249,305 Property and equipment, at cost: Land 154,531 154,881 Buildings 1,524,072 1,520,486 Improvements other than building 1,883,218 1,562,237 Machinery and equipment 2,181,855 2,189,740 Water and sewer lines 16,781,927 16,146,388 22,525,603 21,573,732 Less: accumulated depreciation (5,982,351) (5,456,358) Net property and equipment 16,543,252 16,117,374 Total assets $22,413,412 $21,616,027 Liabilities and Fund Equity Current liabilities: Accounts payable $91,370 $26,001 Contracts payable 11,092 5,000 Salaries payable 20,456 18,440 Due to other governments 72,300 43,718 Total liabilities 195,218 93,159 _ Fund Equity: Contributed capital 13,047,497 12,781,455 Retained earnings: Reserved 1,756,113 Unreserved 7,414,584 8,741,413 Total retained earnings 9,170,697 8,741,413 Total fund equity 22,218,194 21,522,868 Total liabilities and fund equity $22,413,412 $21,616,027 99 Exhibit F-8 CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITY ENTERPRISE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Years Ended December 31, 1989 and 1988 1989 1988 Operating Revenues: — Water sales and sewer rents $2,767,449 $2,618,230 Other 111,731 107,512 Total Operating Revenues 2,879,180 2,725,742 Operating Expenses: Personal services 597,408 571,112 Supplies and other charges- — Disposal charges 1,382,052 1,306,604 Other 659,982 600,044 Depreciation: Purchased assets 168,188 143,284 Contributed assets 326,605 322,399 Total Operating Expenses 3,134,235 2,943,443 Operating loss (255,055) (217,701) Non-Operating Revenues(Expenses): Interest on Investments 341,182 349,295 Loss on reclassification (625) — Debt service (380) Total Non-Operating Revenues (Expenses) 340,557 348,915 — Income before operating transfers 85,502 131,214 Operating transfers from: Special Assessment Capital Projects Fund 17,177 4,159 Total operating transfers 17,177 4,159 — Net Income 102,679 135,373 Credit arising from transfer of depreciation on contributed capital 326,605 322,399 Retained Earnings January 1 as previously reported 7,658,413 7,426,340 Adjustments: See Note 18 1,083,000 857,301 Retained Earnings January 1 as restated 8,741,413 8,283,641 Retained Earnings December 31 $9,170,697 $8,741,413 100 • Exhibit F-9 CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITY ENTERPRISE FUND COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION -- Years Ended December 31, 1989 and 1988 1989 1988 Sources of working capital: Operations Net income for the year $102,679 $135,373 Items not requiring working capital - — Depreciation 494,793 465,683 Working capital provided by operations 597,472 601,056 Decrease in long term receivable 19,160 22,826 Contributed capital 635,539 18,467 Loss on reclassification of assets 625 Net decrease in restricted assets 20,000 Total sources of working capital 1,252,796 662,349 Uses of working capital: Acquisition of property and equipment 964,188 1,111,158 Total uses of working capital 964,188 1,111,158 Increase (decrease) in working capital $288,608 ($448,809) Elements of increase (decrease) in _ working capital: Cash ($338,272) $338,372 Investments 606,792 (1,051,893) Accounts receivable 104,626 79,148 Due from other funds 3,655 Due from other governments 673 (88,249) Inventories, at cost (2,910) (7) Prepaid expenses 16,103 13,948 Accounts payable (65,369) 9,991 Contracts payable (6,092) 274,917 Salaries payable (2,016) (5,350) Due to other governments (28,582) (39,686) Bonds payable 20,000 Increase (decrease) in working capital $288,608 ($448,809) 101 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 the City of Fridley employees. Management Information Services Fund This fund is used to account for all revenues and expenses associated with the City operated computerized information system that handles the information processing needs of the City. Self Insurance Fund This fund is used to account for all revenues and expenditures associated with the $50,000 deductible in the City general liability policy. CITY OF FRIDLEY, MINNESOTA .- INTERNAL SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1989 With Comparative Totals for December 31, 1988 Management Employee Information Self Benefits Services Insurance Assets Current assets: Cash $409,555 $ $138,324 Investments 952,627 2,866 Accounts receivable 305 Due from other governments Prepaid expenses 21,073 Total current assets 1,383,255 2,866 138,629 Property and equipment, at cost: — Property and equipment Less: accumulated depreciation Net property and equipment 0 0 0 Total assets $1,383,255 $2,866 $138,629 Liabilities and Fund Equity Current liabilities: Accounts payable $ $2,866 $9 Compensated absences payable 736,149 Total liabilities 736,149 2,866 9 — Fund equity: Retained earnings- reserved 647,106 138,620 — Total fund equity 647,106 0 138,620 Total liabilities and fund equity $1,383,255 $2,866 $138,629 -' 104 Exhibit G-1 Totals 1989 1988 — $547,879 $168,263 955,493 1,909,796 — 305 1,010 21,073 1,524,750 2,079,069 — 310,258 (180,983) 0 129,275 $1,524,750 $2,208,344 $2,875 $66,952 736,149 788,798 -- 739,024 855,750 — 785,726 1,352,594 785,726 1,352,594 — $1,524,750 $2,208,344 105 — CITY OF FRIDLEY, MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Year Ended December 31, 1989 With Comparative Totals for Year Ended December 31, 1988 Management Employee Information Self Benefits Services Insurance Operating revenues: Charges for services $273,965 $51,838 $ Operating expenses: Personal services 96,122 599 Supplies and other charges 42,997 30,306 Benefit payments 229,106 Depreciation 41,064 Capital outlay 12,962 — Total operating expenses 325,228 84,061 43,867 Operating income(loss) (51,263) (32,223) (43,867) Non operating revenues: Interest on investments 94,963 36,955 7,258 ., Loss on reclassification of assets (310) Other 50 70,576 Total non-operating revenues(expenses) 94,963 36,695 77,834 — Net income 43,700 4,472 33,967 Retained earnings January 1 603,406 644,535 104,653 Residual Equity transfer in (out) (649,007) Retained earnings December 31 $647,106 $0 $138,620 106 Exhibit G-2 ,_ Totals 1989 1988 $325,803 $328,028 96,721 19,998 _ 73,303 62,774 229,106 195,221 41,064 38,943 _ 12,962 453,156 316,936 (127,353) 11,092 — 139,176 168,263 — (310) 70,626 42,276 209,492 210,539 82,139 221,631 1,352,594 730,963 (649,007) 400,000 $785,726 $1,352,594 107 CITY OF FRIDLEY, MINNESOTA INTERNAL SERVICE FUNDS ^" COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION Year Ended December 31, 1989 — With Comparative Totals for Year Ended December 31, 1988 Management Employee Information Self Benefits Services Insurance Sources of working capital: Operations: — Net income for the year $43,700 $4,472 $33,967 Items not requiring working capital - Depreciation 41,064 — Working capital provided by operations 43,700 45,536 33,967 Loss on reclassification 310 Residual equity transfer Net book value of transferred assets 125,950 Total sources of working capital 43,700 171,796 33,967 — Uses of working capital: Acquisition of property and equipment 38,049 — Residual equity transfer 649,007 Total uses of working capital 687,056 Increase(decrease) in working capital $43,700 ($515,260) $33,967 Elements of increase(decrease) in working capital: Cash $301,525 ($53,483) $131,574 ., Investments (331,547) (525,052) (97,704) Account receivable 305 Due from other governments (1,010) — Prepaid expense 21,073 Accounts payable 63,275 802 Compensated absences payable 52,649 — Due to other funds Increase(decrease) in working capital $43,700 ($515,260) $33,967 108 -. Exhibit G-3 Totals 1989 1988 $82,139 $221,631 41,064 38,943 123,203 260,574 310 400,000 125,950 249,463 660,574 38,049 102,847 649,007 687,056 102,847 ($437,593) $557,727 $379,616 $168,263 (954,303) 419,053 305 (1,010) 1,010 21,073 64,077 (64,954) 52,649 9,355 ^ 25,000 ($437,593) $557,727 109 Exhibit G-4 CITY OF FRIDLEY, MINNESOTA EMPLOYEE BENEFITS INTERNAL SERVICE FUND COMPARATIVE BALANCE SHEET — December 31, 1989 and 1988 1989 1988 Assets Cash $409,555 $108,030 — Investments 952,627 1,284,174 Prepaid expense 21,073 Total assets $1,383,255 $1,392,204 Liability and Fund Equity Current Liability: Compensated absences payable $736,149 $788,798 — Fund equity: Retained earnings- Reserved for employee benefits 647,106 603,406 Total current liability and fund equity $1,383,255 $1,392,204 110 Exhibit G-5 CITY OF FRIDLEY, MINNESOTA EMPLOYEE BENEFITS INTERNAL SERVICE FUND — COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Years Ended December 31, 1989 and 1988 1989 1988 Operating revenues: — Charges for services $273,965 $209,047 Operating expenses: -. General government- Personal services 96,122 19,998 Benefit payments 229,106 195,264 Total operating expenses 325,228 215,262 Operating loss (51,263) (6,215) Non-operating revenues: Interest on investments 94,963 108,030 _, Total non-operating revenues 94,963 108,030 Net income 43,700 101,815 Retained earnings January 1 603,406 501,591 Retained earnings December 31 $647,106 $603,406 111 Exhibit G-6 CITY OF FRIDLEY, MINNESOTA EMPLOYEE BENEFITS INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION Years Ended December 31, 1989 and 1988 1989 1988 Sources of working capital: Operations Net income $43,700 $101,815 — Elements of increase(decrease) in ..., working capital: Cash $301,525 $108,030 Investments (331,547) (15,994) Prepaid expense 21,073 Accounts payable 424 Compensated absences payable 52,649 9,355 — Increase in working capital $43,700 $101,815 112 Exhibit G-7 — CITY OF FRIDLEY, MINNESOTA MANAGEMENT INFORMATION SERVICES INTERNAL SERVICE FUND COMPARATIVE BALANCE SHEET '-' December 31, 1989 and 1988 — 1989 1988 Assets Current assets: Cash $ $53,483 — Investments 2,866 527,918 Total current assets 2,866 581,401 — Property and equipment, at cost: Machinery and equipment 310,258 Less: accumulated depreciation (180,983) — Net property and equipment 0 129,275 Total assets $2,866 $710,676 Liability and Fund Equity Current Liability: Accounts payable $2,866 $66,141 Fund equity: Retained earnings- Reserved for capital outlay 644,535 — Total fund equity 0 644,535 — Total current liability and fund equity $2,866 $710,676 113 Exhibit G-8 CITY OF FRIDLEY, MINNESOTA MANAGEMENT INFORMATION SERVICES INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF REVENUES EXPENSES AND CHANGES IN RETAINED EARNINGS Years Ended December 31, 1989 and 1988 1989 1988 Operating revenues: Charges for services $51,838 $119,024 — Operating expenses: Supplies and other charges 42,997 45,132 -, Depreciation 41,064 38,943 Total operating expenses 84,061 84,075 Operating income(loss) (32,223) 34,949 Non-operating revenues: ., Interest on investments 36,955 53,483 Loss on reclassification of assets (310) Other 50 300 Total non-operating revenues 36,695 53,783 Net income 4,472 88,732 Retained earnings January 1 644,535 155,803 — Residual equity transfer in(out) (649,007) 400,000 Retained earnings December 31 $0 $644,535 114 Exhibit G-9 CITY OF FRIDLEY, MINNESOTA MANAGEMENT INFORMATION SERVICES INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION Years Ended December 31, 1989 and 1988 1989 1988 Sources of working capital: -' Operations: Net income for the year $4,472 $88,732 Items not requiring working capital - — Depreciation 41,064 38,943 Working capital provided by operations 45,536 127,675 -- Loss on reclassification of assets 310 Net book value of transferred asssets 125,950 Residual equity transfer 400,000 Total sources of working capital 171,796 527,675 Uses of working capital: Acquisition of property and equipment 38,049 102,847 Residual equity transfer 649,007 Total uses of working capital 687,056 102,847 Increase(decrease)in working capital ($515,260) $424,828 Elements of increase (decrease) in working capital: Cash ($53,483) $53,483 Investments (525,052) 411,687 Accounts payable 63,275 (65,342) Due to other funds 25,000 Increase(decrease)in working capital ($515,260) $424,828 115 Exhibit G-10 CITY OF FRIDLEY, MINNESOTA SELF INSURANCE INTERNAL SERVICE FUND COMPARATIVE BALANCE SHEET December 31, 1989 and 1988 1989 1988 Assets -, Cash $138,324 $6,750 Investments 97,704 -- Accounts receivable 305 Due from other governments 1,010 Total assets $138,629 $105,464 Liability and Fund Equity Current liability: — Accounts payable $9 $811 Fund equity: — Retained earnings- Reserved for contingencies 138,620 104,653_ Total fund equity 138,620 104,653 — Total liability and fund equity $138,629 $105,464 116 Exhibit G-11 — SELF INSURANCE INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS — Years Ended December 31, 1989 and 1988 — 1989 1988 — Operating revenues: Charges for services $ $ — Operating expenses: Personal services 599 Supplies and other charges 30,306 17,642 ,_ Capital outlay 12,962 Total operating expenses 43,867 17,642 Operating(loss) (43,867) (17,642) Non-operating revenues: — Interest on investments 7,258 6,750 Insurance reimbursement 70,576 41,976 Total non-operating revenues 77,834 48,726 Net income 33,967 31,084 — Retained earnings January 1 104,653 73,569 Retained earnings December 31 $138,620 $104,653 117 Exhibit G-12 CITY OF FRIDLEY, MINNESOTA SELF INSURANCE INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION Years Ended December 31, 1989 and 1988 1989 1988 — Sources of working capital: Operations: Net income for the year $33,967 $31,084 — Total sources of working capital 33,967 31,084 Increase in working capital $33,967 $31,084 — Elements of increase(decrease) in working capital: Cash $131,574 $6,750 Investments (97,704) 23,360 — Accounts receivable 305 Due from other governments (1,010) 1,010 Accounts payable 802 (36) — Increase in working capital $33,967 $31,084 118 A TRUST AND AGENCY FUNDS t tldt and Anet r y Funds erne used In account for assets held by a government in a trustee or" a 'en{capacity for individuals, private organizations, other governments or other funds. Ev r rsilbte Trust FtSaq Th.,. City of Friaiey maintains only orie Expentiah e I rust Fund that is useci to defray the City adriinistrative costs 'associated-with the issuance of ir'tdustria! revenue development bonds. II f- Q4X rltiOS WatPrsheci Mi=rr4 Fund '1 This �.nr1 was est<ablir-ht. to account for the colic otion of taxes received from the County on �_ i behalf of the Six. Cities Watershed D st,,, t. Nrstel;f,'1otP1Agency E un i.. 1 This fund was established to account for the collection of a three percent tax that has been ,,. * hotels elc r �� ": imposed on all the and motels iri the north;sraki�lr•ban area. The collection process is administered by the City on behalf of the North Metro Convention and Tourism Bureau which will use the money to provide information to visitors and create an awareness of the facilities available -z-: r in this area. peferre.d Compensatio Agency Puri TI-i s fund accounts for deposits held in trust with the International City Managers Association (ICMA)on behalf of the to ity of Fridley employees. Employees make pretax contributions to this ,-y organization throughout their careers which are used as a retirement benefit. , p; a :i. ja Vim, .o n , j)! ' 7 } Exhibit H-1 CITY OF FRIDLEY, MINNESOTA TRUST AND AGENCY FUNDS '-' COMBINING BALANCE SHEET December 31, 1989 With Comparative Totals for December 31, 1988 Expendable Agency Totals Trust Funds 1989 1988 Assets Cash $66,646 $6,259 $72,905 $5,620 Investments 65,704 Receivables: Accounts 2,048 2,048 2,113 Taxes- "- Unremitted 77 77 64 Delinquent 751 751 563 Other assets 2,647,512 2,647,512 2,167,615 Total assets $66,646 $2,656,647 $2,723,293 $2,241,679 Liabilities and Fund Balance — Liabilities: Advance from city's general account $ $ $ $106 — Deposits payable 36,449 2,647,512 2,683,961 2,209,372 Deferred revenue 751 751 563 Due to other governments 8,384 8,384 6,313 Total liabilities 36,449 2,656,647 2,693,096 2,216,354 Fund balance: — Unreserved- undesignated 30,197 30,197 25,325 Total liabilities and fund balance $66,646 $2,656,647 $2,723,293 $2,241,679 119 Exhibit H-2 CITY OF FRIDLEY, MINNESOTA TRUST FUND COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Years Ended December 31, 1989 and 1988 1989 1988 Revenues: Interest on investments $4,872 $5,620 .. Expenditures: — Current: General government 365 Excess of revenues over expenditures 4,872 5,255 Fund balance,January 1 25,325 20,070 Fund balance, December 31 $30,197 $25,325 120 a Exhibit H-3 — CITY OF FRIDLEY, MINNESOTA AGENCY FUNDS — COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Year Ended December 31, 1989 Balance Balance January 1 Additions Deletions December 31 Assets — Cash $ $41,343 $35,084 $6,259 Investments 4,242 4,242 Receivables: — Accounts 2,113 2,048 2,113 2,048 Taxes- Unremitted 64 77 64 77 — Delinquent 563 273 85 751 Other assets 2,167,615 617,476 137,579 2,647,512 Total Assets $2,174,597 $661,217 $179,167 $2,656,647 — Liabilities Advance from city's general account $106 $ $106 $ Deposits payable 2,167,615 617,476 137,579 2,647,512 Deferred revenue 563 273 85 751 Due to other governments 6,313 35,557 33,486 8,384 Total liabilities $2,174,597 $653,306 $171,256 $2,656,647 121 Exhibit H-4 CITY OF FRIDLEY, MINNESOTA - SIX CITIES WATERSHED AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Year Ended December 31, 1989 Balance Balance January 1 Additions Deletions December 31 - Assets Cash $ $12,768 $8,269 $4,499 Investments 4,242 4,242 Taxes receivable: - Unremitted 64 77 64 77 Delinquent 563 273 85 751 Total assets $4,869 $13,118 $12,660 $5,327 -' - Liabilities Due to other governments $4,306 $8,411 $8,141 $4,576 Deferred revenue 563 273 85 751 Total liabilities $4,869 $8,684 $8,226 $5,327 CITY OF FRIDLEY, MINNESOTA HOTEL/ MOTEL TAX AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Year Ended December 31, 1989 - Balance Balance January 1 Additions Deletions December 31 ^ Assets Cash $ $28,575 $26,815 $1,760 Accounts receivable 2,113 2,048 2,113 2,048 Total assets $2,113 $30,623 $28,928 $3,808 Liabilities Advance from city's general account $106 $ $106 $ ,..■ Due to other governments 2,007 27,146 25,345 3,808 Total liabilities $2,113 $27,146 $25,451 $3,808 122 Exhibit H-5 CITY OF FRIDLEY, MINNESOTA -" DEFERRED COMPENSATION AGENCY FUND STATEMENT OF CHANGES IN ASSET AND LIABILITY Year Ended December 31, 1989 Balance Balance January 1 Additions Deletions December 31 Asset -r Other assets- Deferred compensation - at market $2,167,615 $617,476 $137,579 $2,647,512 Liability Deposits payable $2,167,615 $617,476 $137,579 $2,647,512 123 GENERAL FIXED ASSET ACCOUNT GROUP The General Fixed Asset Account Group is set up to account for long-lived assets not accounted for in an enterprise, trust or internal service fund. Exhibit I-1 CITY OF FRIDLEY, MINNESOTA COMPARATIVE STATEMENT OF GENERAL FIXED ASSETS December 31, 1989 and 1988 1989 1988 General fixed assets: Land $1,917,024 $1,862,154 -' Building 4,412,051 2,515,288 Improvements other than building 13,228,165 13,185,323 Machinery and equipment 4,066,976 2,947,195 Construction in progress 1,785,883 2,363,796 Total general fixed assets $25,410,099 $22,873,756 Investment in general fixed assets from: General obligation bonds $856,597 $856,597 Federal and state aid 1,682,960 1,682,960 General fund revenues 9,838,927 7,063,682 Special revenue fund revenues 173,405 180,597 Special assessments 10,606,725 11,184,638 Private gifts 747,514 747,514 r- Other sources 1,503,971 1,157,768 Total investment in general fixed assets $25,410,099 $22,873,756 125 Exhibit 1-2 CITY OF FRIDLEY, MINNESOTA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 1989 Improvements Machinery Other than and Total Land Buildings Buildings Equipment Function and Activity General government City manager $25,357 $ $ $ $25,357 Cable TV 38,564 38,564 Accounting 45,507 45,507 Management Information Services 346,203 5,990 340,213 Assessing 2,987 2,987 Elections 15,132 15,132 Planning 146,822 124,804 22,018 Civic center 3,706,551 52,496 2,845,239 36,936 771,880 Total general government 4,327,123 177,300 2,845,239 42,926 1,261,658 Public safety Public protection 454,213 57,438 396,775 Fire protection 1,147,870 59,106 497,922 74,348 516,494 Inspectional services 10,004 10,004 Civil defense 146,258 110,527 35,731 Total public safety 1,758,345 59,106 497,922 242,313 959,004 Public works "' Engineering 46,430 46,430 Street improvements 10,712,699 5,764 10,706,935 Traffic signal 138,243 138,243 City garage 1,826,288 114,780 380,150 157,449 1,173,909 Parks 3,495,595 1,254,016 252,572 1,519,686 469,321 Total public works 16,219,255 1,374,560 632,722 12,522,313 1,689,660 Recreation/Naturalist Recreation 128,421 4,536 123,885 - Naturalist 1,191,072 306,058 436,168 416,077 32,769 Total recreation/naturalist 1,319,493 306,058 436,168 420,613 156,654 Total general fixed assets allocated to functions $23,624,216 $1,917,024 $4,412,051 $13,228,165 $4,066,976 Construction in progress 1,785,883 Total fixed assets $25,410,099 126 Exhibit 1-3 CITY OF FRIDLEY, MINNESOTA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS- - BY FUNCTION AND ACTIVITY Year Ended December 31, 1989 General Fixed General Fixed Assets Assets 1/1/89 Additions Deletions 12/31/89 - Function and Activity General government City manager $35,945 $ $10,588 $25,357 Cable TV 45,756 328 7,520 38,564 - Accounting 63,772 410 18,675 45,507 Management Information Services 346,203 346,203 Assessing 7,080 4,093 2,987 - Elections 33,790 18,658 15,132 Planning 149,513 1,449 4,140 146,822 _ Civic center 1,279,560 2,488,854 61,863 3,706,551 Total general government 1,615,416 2,837,244 125,537 4,327,123 Public safety - Public protection 467,141 135,500 148,428 454,213 Fire protection 910,970 261,021 24,121 1,147,870 Inspectional services 12,640 647 3,283 10,004 - Civil defense 144,036 3,968 1,746 146,258 Total public safety 1,534,787 401,136 177,578 1,758,345 Public works Engineering 56,986 4,540 15,096 46,430 Street improvements 10,712,699 10,712,699 Traffic signal 138,243 138,243 City garage 1,71 4,351 233,730 121,793 1,826,288 Parks 3,517,169 50,121 71,695 3,495,595 - Total public works 16,139,448 288,391 208,584 16,219,255 Recreation/Naturalist - Recreation 43,827 94,499 9,905 128,421 Naturalist 1,176,482 26,334 11,744 1,191,072 Total recreation/naturalist 1,220,309 120,833 21,649 1,319,493 Construction in progress 2,363,796 1,087,634 1,665,547 1,785,883 Total general fixed assets $22,873,756 $4,735,238 $2,198,895 $25,410,099 127 GENERAL LONG-TERM DEBT ACCOUNT GROUP The General Long-Term Debt Account Group is set up to account for unmatured principal of bonds, warrants, notes, or other forms of long-term indebtedness that are secured by the full faith and credit of the City and is not deemed the primary obligation of any specific enterprise fund of the City. • Exhibit J-1 CITY OF FRIDLEY, MINNESOTA COMPARATIVE STATEMENT OF GENERAL LONG-TERM DEBT — December 31, 1989 and 1988 1989 1988 — Amount available and to be provided for the payment of general long-term debt — Amount available in Debt Service Funds $23,354,940 $23,339,588 Amount to be provided by future taxes 6,705,060 8,505,412 _ Total available and to be provided $30,060,000 $31,845,000 General long-term debt payable General long-term debt payable: — General obligation special assessment improvement bonds $6,510,000 $7,240,000 Variable rate general obligation tax — increment bonds 10,845,000 11,295,000 General obligation tax increment refunding bonds 9,425,000 9,815,000 Tax increment revenue refunding bonds 3,280,000 3,495,000 Total general long-term debt payable $30,060,000 $31,845,000 129 SUPPLEMENTAL SECTION VOTO, TAUTGES, REDPATH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Birch Lake Professional Building • 1 310 E. Hwy. 96• White Bear Lake, MN 55110 • Fax (612)426-5004 • Phone(612)426-3263 ROBERT).VOTO,CPA ROBERT G.TAUTGES,CPA JAMES S.REDPATH,CPA D.KENNETH GEORGE,CPA DAVID I.MOO CPA Independent Auditor's Report on Compliance With Requirements Applicable to Nonmajor Federal Financial Assistance Program Transactions To the Honorable Mayor and Members of the City Council City of Fridley,Minnesota In connection with our audit of the 1989 general purpose financial statements of the City of Fridley, Minnesota, and with our study and evaluation of the City of Fridley,Minnesota,internal control systems used to administer federal financial assistance programs,as required by Office of Management and Budget Circular A-128, "Audits of State and Local Governments," we selected certain transactions applicable to certain nonmajor federal financial assistance programs for the year ended December 31, 1989. As required by OMB Circular A-128, we have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed and eligibility, that are applicable to those transactions. Our procedures were substantially less in scope than an audit,the objective of which is the expression of an opinion on the City of Fridley's compliance with these _ requirements. Accordingly, we do not express such an opinion. With respect to the items tested,the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested,nothing came to our attention that caused us to believe that the City of Fridley had not complied,in all material respects,with those requirements. This report is intended for the use of the City of Fridley, Minnesota,the Federal Cognizant Audit Agency and other federal agencies. This restriction is not intended to limit the distribution of this report,which is a matter of public record. lam• , 7c, /d4Q * VOTO, TAUTGES, REDPATH&CO.,LTD. Certified Public Accountants April 6, 1990 MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS•PRIVATE COMPANIES PRACTICE SECTION MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MUNICIPAL FINANCE OFFICERS ASSOCIATION •MINNESOTA ASSOCIATION OF SCHOOL,BUSINESS OFFICIALS 131 VOTO, TAUTGES, REDPATH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Birch Lake Professional Building • 1310 E. Hwy. 96• White Bear Lake, MN 55110 • Fax (612)426-5004 • Phone(612)426-3263 ROBERT J.VOTO,CPA ROBERT G.TAUTGES,CPA JAMES S.REDPATH,CPA Independent Auditor's Report on the Internal Control Structure --- - in Accordance with Government Auditing Standards D.KENNETH GEORGE,CPA DAVID J.MOL,CPA To the Honorable Mayor and Members of the City Council City of Fridley, Minnesota We have audited the general purpose financial statements of the City of Fridley,Minnesota, as of and for the year ended December 31, 1989,and have issued our report thereon dated April 6, 1990. We conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. In planning and performing our audit of the general purpose financial statements of the City of Fridley, Minnesota, for the year ended December 31, 1989,we considered its internal control .., structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. The management of the City of Fridley, Minnesota,is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility,estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable,but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition,and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure,errors or irregularities may nevertheless occur and not be detected. Also,projections of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report,we have classified the significant internal control structure policies and procedures in the following categories; receivables,cash receipts, billings, accounts payable, cash disbursements and payroll. For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS•PRIVATE COMPANIES PRACTICE SECTION MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MUNICIPAL FINANCE OFFICERS ASSOCIATION •MINtESC2TA ASSOCIATION OF SCHOOL,BUSINESS OFFICIALS Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the — American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. This report is intended for the information of management. This restriction is not intended to limit the distribution of this report,which is a matter of public record. Aro, /119.09440..e4v C- VOTO,TAUTGES, REDPATH&CO.,LTD. Certified Public Accountants April 6, 1990 135 VOTO, TAUTGES, REDPATH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Birch Lake Professional Building • 1310 E. Hwy. 96• White Bear Lake, MN 55110 • Fax (612)426-5004 • Phone(612)426-3263 ROBERT I.VOTO,CPA ROBERT C.TAUTGES,CPA .... IAMES S.REDPATH,CPA D.KENNETH GEORGE,CPA DAVID L MOL,CPA Independent Auditor's Report on Internal Controls (Accounting and Administrative)Based on a Study and Evaluation Made as a Part of an Audit of the General Purpose Financial Statements and the Additional Tests Required by the Single Audit Act To the Honorable Mayor and Members of the City Council City of Fridley, Minnesota We have audited the general purpose financial statements of the City of Fridley, Minnesota,for the year ended December 31, 1989,and have issued our report thereon dated April 6, 1990. As part of our audit, we made a study and evaluation of the internal control systems,including applicable internal administrative controls,used in administering federal financial assistance programs to the extent we considered necessary to evaluate the systems as required by generally accepted auditing standards,Government Auditing Standards, issued by the Comptroller General of the United States,the Single Audit Act of 1984,and the provisions of Office of Management and Budget Circular A-128,Audits of State and Local Governments. For the purpose of this report, we have classified the significant internal accounting and administrative controls used in administering federal financial assistance programs in the following categories: -" Accounting Applications: Federal Assistance Programs: • Billings General Requirements: • Receivables • Political Activity • Cash Receipts • Davis Bacon Act • Accounts Payable • Civil Rights • Cash Disbursements • Relocation and Real Property • Payroll Acquisition • Federal Financial Reports Specific Requirements: • Types of Services • Eligibility • Matching Level of Effort • Reporting • Cost Allocation • Special Requirements,if any MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS•PRIVATE COMPANIES PRACTICE SECTION MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MUNICIPAL FINANCE OFFICERS ASSOCIATION •MINNESOTA ASSOCIATION OF SCHOOL,BUSINESS OFFICIALS 137 The management of the City of Fridley, Minnesota,is responsible for establishing and maintaining internal control systems used in administering federal financial assistance programs. In fulfilling — that responsibility,estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of internal control systems used in administering federal financial assistance programs are to provide management with reasonable, but not absolute,assurance that,with respect to federal fmancial assistance programs,resource use is consistent with laws,regulations, and policies; resources are safeguarded against waste, loss, and misuse; and,reliable data are obtained,maintained, and fairly disclosed in reports. — Because of inherent limitations in any system of internal accounting and administrative controls used in administering federal financial assistance programs,errors or irregularities may nevertheless occur and not be detected. Also,projection of any evaluation of the systems to future ,,, periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. Our study included all of the applicable control categories listed above. During the year ended — December 31, 1989, the City of Fridley,Minnesota had no major federal financial assistance programs and expended 84% of its total federal financial assistance under the following nonmajor federal financial assistance programs: Community Development Block Grant-Small Cities — Program and Housing Assistance Payment Program for Low Income Families (Section 8). With respect to internal control systems used in administering these nonmajor federal financial assistance programs,our study and evaluation included considering the types of errors and irregularities that could occur,determining the internal control procedures that should prevent or detect such errors and irregularities,determining whether the necessary procedures are prescribed and are being followed satisfactorily, and evaluating any weaknesses. With respect to the internal control systems used solely in administering the other nonmajor federal financial assistance programs of the City of Fridley, Minnesota,our study and evaluation was limited to a preliminary review of the systems to obtain an understanding of the control environment and the flow of transactions through the accounting system. Our study and evaluation "' of the internal control systems used solely in administering these nonmajor federal financial assistance programs of the City of Fridley,Minnesota,did not extend beyond this preliminary review phase. Our study and evaluation was more limited than would be necessary to express an opinion on the internal control systems used in administering the federal financial assistance programs of the City of Fridley, Minnesota. Accordingly, we do not express an opinion on the internal control systems used in administering the federal financial assistance programs of the City of Fridley, Minnesota. Also, our audit,made in accordance with the standards mentioned above, would not necessarily — disclose material weaknesses in the internal control systems, for which our study and evaluation was limited to a preliminary review of the systems, as discussed in the fifth paragraph of this report. 139 However,our study and evaluation and our audit disclosed no condition that we believe to be a material weakness in relation to a federal financial assistance program of the City of Fridley, Minnesota. This report is intended solely for the use of the City of Fridley,Minnesota, the Federal Cognizant Audit Agency and other federal agencies, and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report,which,upon acceptance by the City of Fridley, Minnesota,is a matter of public record. VO4-1 Gu•eGe./ A 9 4T VOTO, TAUTGES, REDPATH&CO.,LTD. Certified Public Accountants April 6, 1990 141 VOTO, TAUTGES, REDPATH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Birch Lake Professional Building • 1310 E. Hwy. 96• White Bear Lake, MN 55110 • Fax (612)426-5004 • Phone(612)426-3263 Independent Auditors Report on Supplementary Information- ROBERT J.VOTO,CPA Schedule of Federal Financial Assistance ROBERT G.TAUTGES,CPA JAMES S.REDPATH,CPA D.KENNETH GEORGE,CPA DAVID I.MOL,CPA To the Honorable Mayor and Members of the City Council City of Fridley,Minnesota We have audited the general purpose financial statements of the City of Fridley,Minnesota,for the year ended December 31, 1989,and have issued our report thereon dated April 6, 1990. These general purpose financial statements are the responsibility of the City of Fridley,Minnesota, management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. An audit includes examining,on a test basis,evidence supporting the amounts and disclosures in the general purpose 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 opinion. Our audit was made for the purpose of forming an opinion on the general purpose financial statements of the City of Fridley, Minnesota,taken as a whole. The accompanying schedule of federal financial assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and,in our opinion,is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. ‹V; , / VOTO, TAUTGES, REDPATH&CO.,LTD. Certified Public Accountants April 6, 1990 .� MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS•PRIVATE COMPANIES PRACTICE SECTION MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MUNICIPAL FINANCE OFFICERS ASSOCIATION •MINNESOTA ASSOCIATION OF SCHOOL,BUSINESS OFFICIALS 143 Exhibit K-1 CITY OF FRIDLEY,MINNESOTA SCHEDULE OF FEDERAL GRANT INFORMATION For The Year Ended December 31, 1989 Catalog# Accrued Accrued Federal Funding Source/ Federal Revenue at Revenue at Pass Through Agency/ Domestic December 1, Revenue December 31, Program Title Assistance 1989 Recognized Expenditures 1989 U.S.Department of Housing and Urban Development: Anoka County: Community Development Block Grant- Small Cities Program 14.219 $46,741 $42,962 $42,962 $9,719 Metropolitan Council Housing and Redevelopment Authority: Housing Assistance Payments Program for Low Income Families 14.156 5,130 30,168 30,168 3,297 Total Department of Housing and ._ Urban Development 51,871 73,130 73,130 13,016 U.S.Department of Health and Human Services: Greater Minneapolis Council of Churches: Special Program for the Aging-Title III, Part C- Nutrition Services 13.635 8,517 8,655 Federal Emergency Management Association: Minnesota Department of Public Safety: Civil Defense 83.516 1,820 6,897 5,078 5,078 Total Federal Assistance $53,691 $88,544 $86,863 $18,094 SCHEDULE OF FEDERAL GRANT INFORMATION For The Year Ended December 31,1988 Catalog# Accrued Accrued Federal Revenue at Revenue at Domestic December 1, Revenue December 31, Assistance 1988 Recognized Expenditures 1988 _ Federal Emergency Management Association: Minnesota Department of Public Safety: ' State and Local Warning and Communication System 83.516 $11,381 $9,127 $9,127 • This grant was not shown on the December 31, 1988 single audit report 145 — Exhibit K-2 CITY OF FRIDLEY, MINNESOTA SCHEDULE OF ASSESSED VALUATION AND LONG-TERM DEBT FOR THE TAX INCREMENT FINANCING DISTRICT ., DECEMBER 31, 1989 Redevelopment District Original Tax Capacity $810,001 — Current Tax Capacity 3,334,912 Captured Tax Capacity- retained by the Authority 2,524,911 Bonds Issues: General Obligation Tax Increment Bonds of 1981 $2,200,000 General Obligation Tax Increment Bonds of 1982 625,000 General Obligation Tax — Increment Bonds of 1983 600,000 Tax Increment Revenue Refunding Bonds of 1985 4,070,000 General Obligation Tax "' Increment Redevelopment Bonds of 1985 11,550,000 — General Obligation Tax Increment Refunding Bonds of 1986 10,045,000 Total bonds issued 29,090,000 ^" Amounts Redeemed: Paid (2,165,000) — Defeased (3,375,000) Total amount redeemed (5,540,000) — Outstanding bonds at December 31, 1989 $23,550,000 146 Exhibit K-3 CITY OF FRIDLEY, MINNESOTA SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS — FOR THE TAX INCREMENT FINANCING DISTRICT INCEPTION TO DECEMBER 31, 1989 Current Year Prior Years Total — Sources of Funds: Bond proceeds $ $30,805,467 $30,805,467 Tax increments received 2,357,865 5,183,780 7,541,645 Interest on invested funds 642,761 3,301,403 3,944,164 Real estate sales 384,471 384,471 Rental 29,050 259,675 288,725 — Home ownership revenue 10,125 10,125 Other 4,827 299,007 303,834 Total sources of funds 3,034,503 40,243,928 43,278,431 Uses of Funds: Land acquisition 311,152 10,150,079 10,461,231 Building acquisition 478,923 478,923 — Site improvements or preparation costs 498,495 3,037,668 3,536,163 — Installation of public utilities and improvements 1,088,858 7,917 1,096,775 Bond payments Principal 1,055,000 1,195,000 2,250,000 — Interest and fiscal charges 1,063,412 4,071,299 5,134,711 Refund to school districts 196,617 196,617 — Administrative costs 86,895 2,745,770 2,832,665 Other 194,002 249,994 443,996 Total uses of funds 4,494,431 21,936,650 26,431,081 — District Balance ($1,459,928) $18,307,278 $16,847,350 147 STATISTICAL SECTION ime Table 1 CITY OF FRIDLEY. MINNESOTA GENERAL GOVERNMENT EXPENDITURES BY FUNCTION (1) — LAST TEN FISCAL YEARS — Fiscal General Public Civic Public Recreation, Debt Year Government Safety Center Works Naturalist Service Total — 1980 $618,215 $1,737,883 $128,795 $1,111,066 $839,271 $53,569 $4,488,799 1981 725,095 1,994,788 137,976 1,430,657 1,087,811 52,545 5,428,872 1982 829,434 1,939,996 115,893 1,321,993 911,141 232,793 5,351,250 — 1983 796,799 2,148,834 156,708 1,881,666 (2) 442,703 (2) 325,707 5,752,417 1984 1,017,807 2,201,155 149,332 1,887,379 (2) 442,917 (2) 386,140 6,084,730 1985 1,267,563 2,270,691 162,220 1,929,934 (2) 535,801 (2) 354,029 6,520,238 — 1986 1,872,200 2,576,847 180,839 1,886,888 (2) 535,430 (2) 1,006,771 8,058,975 1987 1,927,147 2,707,681 160,222 1,992,949 (2) 530,066 (2) 2,203,059 (3) 9,521,124 1988 1,948,427 2,741,465 205,654 2,014,817 (2) 589,771 (2) 2,752,080 (3) 10,252,214 — 1989 1,921,559 3,030,507 273,095 2,222,203 (2) 628,397 (2) 3,181,419 (3) 11,257,180 — Note (1) Includes General, Special Revenue, Capital Projects(HRA Fund only) and Debt Service Funds (2) Parks Maintenance activity is now under Public Works (3) Special Assessment Debt Service Fund included 149 — Table 2 CITY OF FRIDLEY, MINNESOTA GENERAL REVENUE BY SOURCE(1) LAST TEN FISCAL YEARS General Property Taxes& Intergovern- Fiscal Special Licenses mental Charges For Miscellaneous Total Year Assessment (2) &Permits Revenue Services Revenue Revenue 1980 $1,974,874 $229,148 $2,659,608 $108,547 $558,006 $5,530,183 1981 2,115,674 233,901 3,040,678 129,887 684,794 6,204,934 1982 2,725,738 360,949 2,238,358 145,551 937,761 6,408,357 1983 2,794,763 320,964 2,994,968 131,018 943,014 7,184,727 1984 2,851,420 411,054 3,386,532 145,394 1,181,901 7,976,301 1985 3,146,086 422,606 3,228,902 153,483 1,299,011 8,250,088 1986 3,484,015 358,962 3,579,436 157,829 2,205,177 9,785,419 1987 4,662,570 (2) 405,583 3,256,331 164,617 2,529,385 11,018,486 1988 5,198,696 (2) 378,553 3,326,179 160,255 2,339,200 11,402,883 1989 6,192,563 (2) 477,192 4,952,247 158,663 2,156,704 13,937,369 Note — (1) Includes General, Special Revenue, Capital Projects(HRA Fund only) and Debt Service Funds (2) Special Assessment Debt Service Fund included 150 Table 3 — CITY OF FRIDLEY, MINNESOTA CERTIFIED PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Collections Percentage Collection of Current of Levy of Prior Total Certified Year's Taxes Collected Year's Taxes Ratio Outstanding, Tax levy During During During of Total Current and Fiscal For Fiscal Fiscal Fiscal Fiscal Total Collections Delinquent Year Period Period(1)(2) Period Period Collections to Tax Levy Taxes 1980 $2,512,176 $2,461,402 97.98% $46,345 $2,507,747 .9982:1 $54,254 1981 2,767,955 2,713,976 98.05% 49,166 2,763,142 .9983:1 59,067 - 1982 2,920,626 2,777,691 95.11% 21,771 2,799,462 .9585:1 153,574 1983 3,151,324 3,086,091 97.93% 55,382 3,141,473 .9969:1 124,610 1984 3,152,952 3,049,773 96.73% 45,490 3,095,263 .9817:1 132,652 1985 3,178,325 3,072,588 96.67% 76,894 3,149,482 .9909:1 150,983 1986 3,232,877 3,152,249 97.51% 44,094 3,196,343 .9887:1 180,738 1987 3,406,825 3,253,858 95.51% 49,299 3,303,157 .9696:1 284,407 1988 3,440,107 3,373,355 98.06% 106,318 3,479,673 1.0115:1 244,842 1989 3,652,452 3,574,837 97.87% 36,610 3,611,447 .9888:1 285,847 Note (1) Includes Homestead Credit (2) Excludes collections from properties pledged to tax increment 151 CITY OF FRIDLEY, MINNESOTA ESTIMATED MARKET VALUE AND TAXABLE VALUE OF ALL PROPERTY LAST TEN FISCAL YEARS Fiscal Year Payable 1980 1981 1982 1983 Assessment Year 1979 1980 1981 1982 — Population, fiscal year 30,228 30,200 29,920 29,810 Real Property: — Estimated market value $555,096,298 $632,523,959 $723,016,622 $776,074,092 Assessor's limited market value $522,308,032 N/A(2) N/A(2) N/A (2) Taxable value- Homestead $24,392,539 $59,013,036 $65,308,228 $94,445,737 Excess and non-homestead 141,946,084 121,924,290 142,031,048 126,066,013 Less fiscal disparities contribution (14,234,755) (17,377,237) (20,695,684) (25,629,645) Less tax increment value (954,050) (2,708,711) (2,892,948) (3,951,300) Taxable value $151,149,818 $160,851,378 $183,750,644 $190,930,805 Personal property: Estimated market value $17,899,900 $18,731,800 $19,328,400 $19,741,300 — Taxable value $7,696,957 $8,054,674 $8,311,212 $8,488,759 Totals: -- Estimated market value $572,996,198 $651,255,759 $742,345,022 $795,815,392 Assessor's limited market value $522,308,032 N/A(2) N/A (2) N/A (2) Taxable value $158,846,775 $168,906,052 $192,061,856 $199,419,564 Per market value ratios — Assessor's limited market value .943:1 N/A(2) N/A (2) N/A (2) Taxable value .277:1 .259:1 .259:1 .251:1 — Per capita valuations Estimated market value $18,956 $21,565 $24,811 $26,696 — Taxable value $5,255 $5,593 $6,419 $6,690 — Taxable value - $5,376,247 $7,354,639 $11,355,678 $12,509,174 Notes (1) The 1988 Minnesota Legislature enacted legislation which changed the method of computing property taxes. Those changes have been reflected in the computation of the taxable value for taxes payable in 1989. (2) In 1980, Limited Market Value was omitted as a consideration on determining taxable value. 152 Table 4 1984 1985 1986 1987 1988 1989 1983 1984 1985 1986 1987 1988(1) 29,750 29,440 29,423 29,310 29,336 29,250 $802,180,000 $807,910,500 $839,392,000 $879,498,600 $907,274,900 $941,136,600 N/A (2) N/A(2) N/A (2) N/A (2) N/A (2) N/A (2) $94,343,673 $91,923,166 $91,343,841 $94,010,922 $94,216,387 $11,864,707 130,295,079 132,234,317 143,450,918 153,262,018 152,658,373 19,425,676 (27,102,595) (29,835,444) (29,730,694) (34,112,779) (37,235,245) (4,351,931) (2,765,895) (5,458,497) (9,032,222) (11,348,839) (14,921,389) (2,524,911) $194,770,262 $188,863,542 $196,031,843 $201,811,322 $194,718,126 $24,413,541 $21,263,600 $21,534,300 $26,208,700 $26,531,000 $26,731,000 $26,452,800 $9,143,348 $9,259,749 $11,245,936 $11,393,525 $11,479,525 $1,385,766 $823,443,600 $829,444,800 $865,600,700 $906,029,600 $934,005,900 $967,589,400 N/A(2) N/A(2) N/A(2) N/A(2) N/A (2) N/A (2) $203,913,610 $198,123,291 $207,277,779 $213,204,847 $206,197,651 $25,799,307 N/A(2) N/A (2) N/A(2) N/A(2) N/A (2) N/A (2) .248:1 .239:1 .239:1 .235:1 .221:1 .027:1 $27,679 $28,174 $29,419 $30,912 $31,838 $33,079 $6,854 $6,730 $7,045 $7,274 $7,029 $882 $15,369,625 $18,142,244 $18,296,235 $20,639,055 $23,382,622 $3,428,008 (3) 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, 1988 upon which the 1989 levy was based was$25,799,307. 153 CFTY OF FRIDLEY, MINNESOTA SIGNIFICANT MINNESOTA TAX POLICIES ,^ DECEMBER 31, 1989 GENERAL "' The 1988 Minnesota Legislature enacted numerous changes to the property tax system. Their goal was to simplify the property tax system and to eliminate disparity among taxing jurisdictions. The previous system of assessed value and mill rates has been replaced with Tax Capacity and Tax Capacity Rates. Under the new system, the market value of the property is multiplied by a Legislatively set Tax Capacity Percentage to arrive at the Tax Capacity. The Tax Capacity is then multiplied by the Local Tax Capacity Rate to determine the Gross Tax. "' Properties are physically reviewed by assessors at least once every four years. The Minnesota Department of Revenue analyzes sales of properties annually,comparing sales prices with the local assessors market value. This establishes a sales ratio. The sales ratio is also used in determining municipal and school district state aids. The assessors market value is multiplied by the appropriate tax capacity percentage to arrive at the tax capacity (taxable value). The tax capacity percentages vary by class of property. The schedule below shows a comparison of the previous years and current law. --. 1988 1989 Type of Property Classification % Tax Capacity % (Previous Law) (Current Law) ., Residential Homestead First $68,000 17% 2.17% -, $68,000 - 100,000 27 2.5 Over $100,000 27 3.3 Commercial/Industrial First $60,000 28 3.3 $60,000 - 100,000 43 3.3 Over $100,000 43 5.25 Rentals ._ Apartments: 4+ units 34 4.1 3 or less units 28 3.5 Title II, MFHA, Sect. 8 20 2.5 — Homestead Credit. Homestead taxes are reduced by a 54% credit (maximum $725). This credit is subtracted on the tax statement, and the taxpayer pays only the net amount; homestead credits are reimbursed by the State to the taxing districts in proportion to their levies, thus relieving the property tax burden. Property Tax Refund. Further residential property tax credits are gauged by percentages of the net property tax to household income: to the extent a homeowners income (1% for lower income groups, up to 4%for incomes of$35,000)homeowners or renters may receive State credits up to$1,825(combined homestead and income-adjusted credits). -- 154 CITY OF FRIDLEY, MINNESOTA PROPERTY TAX RATES AND CALCULATED TAX LEVIES ALL OVERLAPPING GOVERNMENTS _, LAST TEN FISCAL YEARS - Property Tax Rates(1) School School School School Fiscal District District District District Year City No. 11 No. 13 No. 14 No. 16(2) County 1980 15.306 43.21 46.73 45.08 61.83 25.84 1981 15.722 38.00 41.48 41.12 51.08 27.91 1982 14.278 46.847 48.266 46.365 65.542 26.113 1983 14.908 45.474 50.156 55.679 62.837 26.594 - 1984 14.340 55.225 56.227 60.332 63.739 28.363 1985 14.654 52.830 50.487 59.675 60.914 27.017 1986 14.256 55.740 53.797 60.919 63.878 28.738 - 1987 14.555 54.926 63.234 57.087 60.989 29.414 1988 14.992 62.181 60.733 67.454 70.880 30.766 1989 12.492% 51.384% 51.364% 55.193% 53.212% 27.425% Certified Levies Calculated Tax Levies School School School School Fiscal District District District District Year City No. 11 No. 13 No. 14 No. 16(2) County 1980 $2,512,176 $319,712 $1,786,183 $3,606,461 $2,395,401 $4,235,650 1981 2,767,955 296,393 1,795,295 3,493,129 2,144,854 4,904,234 1982 2,920,626 447,988 2,383,069 4,412,574 3,130,401 5,332,248 -- 1983 3,151,324 461,623 2,597,543 5,576,373 3,052,396 5,630,016 1984 3,152,952 563,791 2,960,066 6,228,287 3,310,710 5,728,438 1985 3,163,427 536,388 2,650,406 6,152,690 3,122,134 5,825,992 - 1986 3,232,877 576,032 2,894,115 6,402,200 3,555,419 6,451,056 1987 3,406,825 585,299 3,522,818 6,298,305 3,500,364 6,864,334 1988 3,440,107 647,200 3,599,278 7,437,847 3,817,013 7,031,655 - 1989 3,652,452 708,533 3,692,407 7,836,416 3,448,538 7,939,936 Notes (1) 1980-1988 tax rates are expressed as mills; 1989 rate is expressed as a tax capacity rate. ._ (2) Vocational/Technical District#916 included in District No. 16. (3) Six Cities Watershed District included with School District No. 11 beginning in 1985. (4) Rice Creek Watershed District included with School District No. 13,14 and 16. _ 156 Table 5 Totals Total School School School School - Special District District District District Districts No. 11 (3) No. 13(4) No. 14(4) No. 16(2),(4) 3.60 87.44 91.48 89.83 106.58 4.36 85.54 89.47 89.11 99.07 4.057 90.864 92.714 90.813 109.990 - 4.649 91.170 96.307 101.830 108.988 4.916 100.336 101.571 105.676 109.083 5.229 99.480 97.257 106.445 107.684 - 4.956 103.502 101.673 108.795 111.754 5.761 104.299 112.889 106.742 110.644 5.531 113.334 112.022 118.743 122.169 - 4.679% 95.813% 95.908% 99.737% 97.756% Net - Total Total Yearly Contribution Tax Total Special All Local Percentage To Metro Increment Tax Districts Tax Levies Change Tax Pool Districts Levies $542,080 $15,397,663 6.59% $1,083,986 $68,075 $16,549,724 718,810 16,120,670 4.70% 1,113,318 193,763 17,427,751 ,.., 779,684 19,406,590 20.38% 925,052 304,517 20,636,159 924,841 21,394,116 10.24% 1,402,913 340,539 23,137,568 1,044,451 22,988,695 7.45% 1,209,389 311,160 24,509,244 - 1,073,929 22,524,966 (2.02)% 1,343,511 573,946 24,442,423 1,080,737 24,192,436 7.40% 1,298,052 867,372 26,357,860 1,269,417 25,447,362 5.19% 1,608,958 993,610 28,049,930 - 1,246,009 27,219,109 6.96% 1,799,575 1,530,798 30,549,482 1,321,824 28,600,106 5.07% 91,973 2,326,246 31,018,325 157 Table 6 CITY OF FRIDLEY, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Total Current Current Collections Delinquent Collections Outstanding Fiscal Assessments Assessments to Amount Assessments Total to Current Delinquent Year Due Collected Due Collected Collected Levy Assessments 1980 $699,330 $628,753 89.91% $95,451 $724,204 103.56% $404,012 1981 785,128 755,588 96.24% 87,206 842,794 107.34% 347,975 1982 946,330 780,838 82.51% 65,666 846,504 89.45% 432,530 - 1983 845,916 739,977 87.48% 99,458 839,435 99.23% 429,947 1984 811,722 710,323 87.51% 144,614 854,937 105.32% 371,951 1985 893,674 802,910 89.84% 133,182 936,092 104.75% 344,254 - 1986 765,737 730,149 95.35% 143,891 874,040 114.14% 176,879 1987 917,525 845,716 92.17% 30,524 876,240 95.50% 221,994 1988 782,079 779,413 99.66% 41,719 821,132 104.99% 202,296 ..., 1989 743,555 706,442 95.01% 52,374 758,816 102.05% 168,014 158 CITY OF FRIDLEY, MINNESOTA HISTORY OF CERTIFIED TAX LEVIES AND TAX RATES LAST TEN FISCAL YEARS 1980 1981 1982 1983 — Certified tax levies General Fund $2,428,376 $2,684,615 $2,838,504 $3,070,254 General Debt Service Funds 38,800 38,570 37,352 36,300 Capital Improvement Fund 45,000 44,770 44,770 44,770 Subtotal 2,512,176 2,767,955 2,920,626 3,151,324 Agency Fund Total $2,512,176 $2,767,955 $2,920,626 $3,151,324 Mill rate(1980-1988); Tax Capacity Rate(1989) General Fund 14.795 15.248 13.877 14.525 General Debt Service Funds 0.274 0.220 0.183 0.172 Capital Improvement Fund 0.237 0.254 0.218 0.211 -. Subtotal 15.306 15.722 14.278 14.908 Agency Fund Total 15.306 15.722 14.278 14.908 160 Table 7 1984 1985 1986 1987 1988 1989 --• $3,071,882 $3,083,270 $3,141,859 $3,311,826 $3,345,190 $3,556,166 36,300 35,175 35,628 44,770 44,982 45,521 85,542 86,320 87,689 3,152,952 3,163,427 3,223,008 3,397,368 3,431,510 3,643,855 14,898 9,869 9,457 8,597 8,597 $3,152,952 $3,178,325 $3,232,877 $3,406,825 $3,440,107 $3,652,452 13.970 14.283 13.895 14.188 14.614 12.192% 0.166 0.163 0.158 0.204 0.208 0.203 0.367 0.378 0.300% 14.340 14.654 14.256 14.555 14.992 12.492% ... 0.240 0.074 0.075 0.066 0.052% 14.340 14.894 14.330 14.630 15.058 12.544% 161 — CITY OF FRIDLEY, MINNESOTA RATIO OF NET GENERAL BONDED DEBT TO TAXABLE VALUES AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS Deduct City Debt Special Total Service Fund Assessment, Fiscal Taxable Gross Monies Revenue and Year Population Value Bonded Debt Available HRA Bonds 1980 30,228 $158,846,775 $6,105,000 $69,480 $5,905,000 — 1981 30,200 $168,906,052 $8,954,000 $76,953 $8,784,000 1982 29,920 $192,061,856 $9,160,000 $82,255 $9,020,000 1983 29,810 $199,419,654 $8,285,000 $84,240 $8,180,000 1984 29,750 $203,913,610 $7,470,000 $86,709 $7,400,000 1985 29,440 $198,123,291 $22,125,000 $86,117 $22,090,000 1986 29,423 $207,277,779 $34,035,000 $91,510 $34,035,000 ^ 1987 29,310 $213,204,847 $33,195,000 -0- $33,195,000 1988 29,336 $206,197,651 $31,845,000 -0- $31,845,000 1989 29,250 $25,799,307 $30,060,000 -0- $30,060,000 Notes (1)The 1988 Minnesota Legislature enacted legislation which changed the method of computing property taxes. Those changes have been reflected in the computation of the taxable value for taxes payable in 1989. — 162 — Table 8 Debt to Total Net General — Net General Taxable Bonded Debt Bonded Debt Value Per Capita — $130,520 0.08% $4.32 $93,047 0.05% $3.08 $57,745 0.03% $1.93 — $20,760 0.01% $0.70 -0- - - -0- - - — -0- - - -0- - - -0- - - -0- - - 163 Table 9 CITY OF FRIDLEY,MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN DECEMBER 31, 1989 — Market Value $967,589,400 ._ (A) Debt Limit 2% of Market Value $19,351,788 Amount of Debt Applicable to Debt Limit: Total Bonded Debt $30,060,000 (B) Deductions: Tax Increment Redevelopment Bonds $20,270,000 Special Assessment Bonds 6,510,000 Tax Increment Revenue Bonds 3,280,000 30,060,000 Total Amount of Debt Applicable to Debt Limit -0- — Legal Debt Margin $19,351,788 Notes (A) M.S.A. Section 475.53 (see following page) (B) M.S.A. Section 475.51 (see following page) 164 CITY OF FRIDLEY, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED) YEAR ENDED DECEMBER 31. 1989 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 deduction 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, if 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, and public lighting, heating or power systems, and of any combination thereof or for any other public convenience from which a revenue is or may be derived. awma (6) Debt service loans and capital loans made to a school district under the provisions of sections 124.42 and 124.43. (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 116J.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.' 165 Table 10 CITY OF FRIDLEY, MINNESOTA — COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT AND COMPARATIVE DEBT RATIOS DECEMBER 31. 1989 — Debt % of Debt Net Debt Gross Service Net Applicable Applicable Governmental Unit Debt Funds Debt to City to City — Direct and overlapping debt Direct debt: City of Fridley $30,060,000 $16,907,951 $13,152,049 100.00% $13,152,049 (1) Overlapping debt: School Districts No. 11 $20,415,000 $3,574,067 $16,840,933 1.29% $217,248 No. 13 100,000 117,275 No. 14 165,000 524,528 No. 16 7,967,309 3,428,067 4,539,242 33.23% 1,508,390 Metro Transit 10,950,000 5,707,000 5,243,000 1.25% 65,538 Metro Council 372,631,000 57,401,135 315,229,865 1.25% 3,940,373 Anoka County 51,219,800 2,388,293 48,831,507 17.24% 8,418,552 North Suburban — Hospital District 16,298,960 1,878,862 14,420,098 42.95% 6,193,432 Vocational/Technical District No. 916 13,665,000 2,769,597 10,895,403 1.86% 202,654 Overlapping debt 493,412,069 77,788,824 416,000,048 20,546,187 Total direct and overlapping debt $523,472,069 $94,696,775 $429,152,097 $33,698,236 (1) There is$11,576,900 in deposits with trustee to service this debt 166 _ Table 11 CITY OF FRIDLEY, MINNESOTA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENT EXPENDITURES LAST TEN FISCAL YEARS Ratio of Debt Total Total Service to -. Fiscal Debt General General Year Principal Interest Service Expenditures(1) Expenditure _ 1980 $42,725 $10,844 $53,569 $4,488,799 .0119:1 1981 43,743 8,802 52,545 5,428,872 .0097:1 1982 44,845 187,948 232,793 5,351,250 .0435:1 1983 35,000 290,707 325,707 5,752,417 .0566:1 1984 85,000 301,140 386,140 6,084,730 .0635:1 1985 120,000 234,029 354,029 6,520,238 .0543:1 _„ 1986 215,000 791,771 1,006,771 8,058,975 .1249:1 1987 740,000 1,463,059 2,203,059 9,521,124 .2314:1 1988 1,380,000 1,372,080 2,752,080 10,252,214 .2684:1 — 1989 1,640,500 1,540,919 3,181,419 11,257,180 .2626:1 (1) Includes General, Special Revenue, Debt Service and Capital Projects(HRA Fund Only) (2) Special Assessment Debt Service Fund included as of 1987 167 Table 12 — CITY OF FRIDLEY, MINNESOTA REVENUE BOND COVERAGE LAST TEN FISCAL YEARS Net Operating Revenue Direct Direct Available Fiscal Operating Operating For Debt Debt Service Requirements Year Revenue Expenses Services Principal Interest Total Coverage 1980 $1,477,709 $1,376,970 $100,739 $106,964 $20,957 $127,921 0.79 1981 1,560,081 1,681,670 (121,589) 107,750 16,065 123,815 - 1982 1,753,918 1,767,818 (13,900) 97,500 11,545 109,045 - 1983 1,928,973 1,850,966 78,007 50,000 8,659 58,659 1.33 1984 2,401,206 2,043,653 357,553 50,000 6,907 56,907 6.28 1985 2,296,415 2,253,164 43,251 50,000 5,152 55,152 0.78 1986 2,434,100 2,522,048 (87,948) 50,000 3,400 53,400 1987 2,473,814 2,513,721 (39,907) 50,000 1,646 51,646 - 1988 2,725,742 2,943,443 (217,701) 20,000 380 20,380 - 1989 2,879,180 3,134,235 (255,055) 168 Table 13 CITY OF FRIDLEY, MINNESOTA ._ DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Annual Average Fiscal Per Capita Median School Unemployment Year Population(1) Income Age(4) Enrollment(3) Rate(5)(6) 1980 30,228 (2) $8,654 (2) 27.4 (2) 6,331 4.4% 1981 30,200 8,700 27.7 (3) 5,915 4.7% 1982 29,920 8,750 28.0 (3) 5,595 6.6% 1983 29,810 9,188 28.3 5,238 7.4% 1984 29,750 9,647 28.6 5,007 5.0% 1985 29,440 10,129 28.9 4,833 4.9% 1986 29,423 10,635 29.2 4,660 4.3% 1987 29,310 13,238 29.9 4,453 4.7% 1988 29,336 13,241 29.9 4,367 3.1% 1989 29,250 13,241 31.0 4,362 2.9% Sources: (1) Estimated by Metropolitan Council (2) Current Population Report- Bureau of the Census (3) Estimated by the City of Fridley Community Development Department- excludes — Grace Parochial High School as it is not supported by property tax dollars (4) Source book of Demographic and Buying Power (5) Minnesota Department of Economic Security-Twin Cities Labor Market (6) Beginning in 1983, Unemployment Rate as reported is area wide for the County of Anoka rather than for the City of Fridley only 169 Table 14 CITY OF FRIDLEY, MINNESOTA CONSTRUCTION BANK DEPOSITS AND PROPERTY VALUE LAST TEN FISCAL YEARS Commercial Construction Residential Construction Estimated Market Value Number Number Bank(1) Fiscal of of Deposits Taxable Non- Year Units Value Units Value (Thousands) Property Taxable(2) Total 1980 36 $23,922,267 367 $2,374,966 $18,763 $572,996,198 $63,489,810 $636,486,008 1981 32 4,589,180 348 2,809,033 19,399 651,255,759 109,749,739 761,005,498 1982 60 5,498,098 305 3,012,844 22,875 742,345,022 109,749,739 852,094,761 1983 48 8,921,297 348 2,969,417 26,099 795,815,392 109,749,739 905,565,131 1984 67 19,332,432 345 4,388,689 27,917 823,443,600 109,749,739 933,193,339 1985 54 12,729,783 365 5,430,598 24,074 829,444,800 109,749,739 939,194,539 1986 41 10,871,941 379 5,409,450 27,025 865,600,700 177,123,840 1,042,724,540 1987 54 9,845,600 435 23,413,715 33,201 906,029,600 177,123,840 1,083,153,440 1988 70 17,421,494 340 3,660,384 29,030 934,005,900 177,123,840 1,111,129,740 — 1989 93 30,529,963 301 3,522,035 30,329 967,589,400 177,123,840 1,144,713,240 Sources: (1) Fridley State Bank (2) Non-taxable property is reevaluated by the county assessors every six years -- 170 — Table 15 CITY OF FRIDLEY, MINNESOTA — PRINCIPAL TAXPAYERS DECEMBER 31, 1989 Fiscal Year 1989 Percent — 1988* of Total Taxable Taxable Rank Taxpayer Type of Business Valuation Valuation** 1 Onan Corporation Portable electric generators $958,143 3.71% 2 Target Stores Discount store, warehouse and office 842,724 3.27% 3 Burlington Northern Railroad Operating property 567,047 2.20% 4 Maurice Fillister Georgetown apartments 433,335 1.68% 5 LaMaur, Inc. Cosmetics 430,535 1.67% 6 Skywood Mall Shopping mall, motel, office complex 344,230 1.33% 7 Medtronics, Inc. Electro-medical devices 305,180 1.18% 8 FMC Corporation Naval ordinance 262,025 1.02% 9 Holiday Plus Discount department store 259,682 1.01 "" 10 Vantage Properties Wholesale Club 259,190 1.00% 11 Five Sands Meadow Run apartments 255,201 0.99% 12 Unity Medical Center Medical clinic building 239,550 0.93% Total $5,156,842 19.99% Notes "' * The 1989 levy was based upon the January 2, 1988 taxable value. ** Before contribution to Metropolitan Tax Pool. 171 CITY OF FRIDLEY, MINNESOTA INSURANCE COVERAGE DECEMBER 31, 1989 All risk perils, 100% coinsurance Buildings and contents Blanket, agreed amount endorsement, replacement cost coverage $14,387,973 Contractor's equipment 858,869 Miscellaneous equipment 92,066 Voting machines 15,000 Neon and outdoor signs 18,818 Boiler and machinery 500,000 — Municipal general liability Each occurrence limit 600,000 Products/completed operations aggregate limit 600,000 .. Fire damage limit 50,000 Medical expense limit 1,000 Medical expense aggregate occurrence limit 10,000 Limited pollution liability 600,000 Automobile liability Liability 600,000 — Personal injury protection 40,000 Uninsured/underinsured motorist 600,000 Comprehensive Actual cash value Collision Actual cash value "" Liquor liability Bodily injury ,_ Each person 1,000,000 Each occurrence 1,000,000 Property damage Each occurrence 1,000,000 — Loss of means of support 1,000,000 Law Enforcement professional liability Combined single limit per loss — Personal injury, bodily injury, property damage, punitive damages 600,000 — Money and securities, inside and outside premises: 6431 University Avenue (City Hall) 15,000 214 Mississippi Street(Liquor Warehouse) 25,000 6289 Highway 65 (Liquor Warehouse Annex) 15,000 — Municipal errors and omissions liability 600,000 — Employee benefits programs liability 600,000 Worker's compensation Statutory PRINCIPAL OFFICIALS' BONDS DECEMBER 31, 1989 All employees are covered by a blanket of faithful performance bond of$100,000. 172 CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION DECEMBER 31, 1989 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 - Mayor and Councilmember-at-Large November 7, 1989 Registered voters 18,074 Number of votes cast 2,306 Percent(%) of registered voters voting 12.75% Population 1950 Federal Census 3,796 1960 Federal Census 15,182 1965 Federal Census 24,789 1970 Federal Census 29,233 1975 Estimated by Metropolitan Counci 32,486 1976 Estimated by Metropolitan Counci 31,570 1977 Estimated by Metropolitan Counci 31,940 1978 Estimated by Metropolitan Counci 33,450 1979 Estimated by Metropolitan Counci 32,644 1980 Federal Census 30,228 1981 Estimated by Metropolitan Counci 30,200 1982 Estimated by Metropolitan Counci 29,920 1983 Estimated by Metropolitan Counci 29,810 1984 Estimated by Metropolitan Counci 29,750 1985 Estimated by Metropolitan Counci 29,440 1986 Estimated by Metropolitan Counci 29,423 1987 Estimated by Metropolitan Counci 29,310 1988 Estimated by Metropolitan Counci 29,336 1989 Estimated by Metropolitan Counci 29,250 Permanent Employees--As of December 31 Number 1980 1981 126 1982 129 1983 123 1984 119 1985 119 1986 125 1987 125 1988 125 1989 126 126 173 CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED) DECEMBER 31, 1989 Fire protection Number of stations 3 Volunteer firefighters 33 Full-time firefighters 5 Fire rating Class 4 Police protection — Number of stations 1 Number of sworn officers 33 Number of street lights 949 Number of traffic signal installations 32 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 125.11 Trunk highways 10.80 County roads 14.56 — Sidewalks 10.98 Miles of sewer — Storm 41.00 Sanitary 102.20 Miles of water mains 109.50 Municipal water system source — City of Fridley Water Plant (13 wells)--capacity of 15 million gallons per day — Number of water connections December 31, 1989 8,225 connections Daily average consumption (gallons) 6.9 million gallons — Elevated storage capacity .5 million gallons Water storage reservoirs 4.5 million gallons Number of fire hydrants 1,066 Municipal sewer system Disposal --through Metropolitan Waste Control Commission Number of connections December 31, 1989 8,320 Average daily flow (includes infiltration/inflow) 3.15 million gallons 174 CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED) — DECEMBER 31, 1989 Parks and Recreation Areas — Developed 425 Acres Undeveloped 125 Acres Total 550 Acres — City Parks Schools Total Number of: — Hockey rinks 9 0 9 General skating rinks 15 0 15 Playgrounds 29 8 37 --- Swimming beaches 1 0 1 Swimming pools 0 1 1 Picnic grounds 2 0 2 — Day camp sites 1 0 1 Baseball diamonds 4 5 9 Softball diamonds 27 11 38 ._ Outdoor basketball courts 21 9 30 Tennis courts 25 19 44 Horseshoe courts 16 0 16 Archery ranges 1 0 1 — Permanent playground buildings 1 0 1 Permanent picnic shelters 7 0 7 — Soccer fields 7 2 9 Football fields 8 8 16 175 CITY OF FRIDLEY, MINNESOTA GENERAL INFORMATION DECEMBER 31, 1989 — Location -Transportation — The City of Fridley, with a total land area of eleven square miles and an estimated population of 29,250, 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 Unity Hospital, a 275-bed hospital with an adjacent clinic (Unity — Professional Building), Fridley Plaza Clinic, Fridley Convalescent Home, the Fridley Medical Center, and Lynwood Manor Nursing Home. 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 167 certified personnel in the education of about 2,530 students. Grace Parochial High School has an enrollment of 735. 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 enrollment of 1,832 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. 176 CITY OF FRIDLEY, MINNESOTA GENERAL INFORMATION (CONTINUED) DECEMBER 31, 1989 Larger Employers Larger employers in the City of Fridley include: Full-Time Employer Product or Service Employees FMC Corporation Pumps and naval ordinance 2,202 Onan Corporation Portable generators, electronic 1,662 ,.., equipment Medtronics, Inc. Electro-medical devices and hdqtrs. 1,700 Burlington Northern Railroad Northtown yard 1,200 Unity Hospital Medical services 475 Kurt Manufacturing Machine parts 800 LaMaur, Inc. Cosmetics 521 Target Stores, Warehouse Discount department store 510 Minco Products, Inc. Electronic devices 450 Midwest Printing Printing TV guide 244 The Pillsbury Company Totino's frozen foods 220 Independent School District#14 Fridley school district 200 Safetran Systems Corporation Railroad accessories 236 Longview Fiber Company Packaging supplies 142 City of Fridley Governmental entity 126 Barry Blower Marly Corporation Air moving devices 143 177