1986 CAFR - - at„ i
�� CITY OF FRIDLEY
m STATE OF
'r�,. az MINNESOTA
r=te s, fi
'�"t�3E �fi
t..,,,)
. rise r
IFICII, *.,..,.„. -,--,-
r
w
I
r
� s COMPREHENSIVE
I
_,..��+ ANNUAL
ri t J j� � � - ay
Y, e J z �� A�
;, ; d s FINANCIAL— 44447'
L;;r, f �� . #k ^,Y , REPORT
▪ �� '- r 1
d
w-R ifc H• .414,41-70.
r-- ��y� 0001_. 1e�
® FOR THE YEAR ENDED
� DECEMBER 31, 1986
, ,F` •
.
CITY OF FRIDLEY, MINNESOTA
Comprehensive Annual Financial Report
December 31, 1986
Prepared by:
Department of Finance
Richard D. Pribyl
Director of Finance
— Julie M. Burt
Assistant Finance Officer
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1986
TABLE OF CONTENTS
EXHIBIT PAGE
INTRODUCTORY SECTION
List of Elected and Appointed Officials 1
Organizational Structure 2
City Manager's Letter of Transmittal 5
Chief Executive Officer's Letter of Transmittal 7
Certificate of Achievement for Excellence in
Financial Reporting 25
FINANCIAL SECTION
Auditors' Opinion 27
General Purpose Financial Statements
Combined Financial Statements - Overview
Combined Balance Sheet - All Fund Types and
Account Groups A-1 30
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - All Governmental
Fund Types and Expendable Trust Funds A-2 34
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - Budget and
Actual - General and Special Revenue Fund Types A-3 36
Combined Statement of Revenues, Expenses
and Changes in Retained Earnings - All
Proprietary Fund Types A-4 38 '
Combined Statement of Changes in Financial
Position - All Proprietary Fund Types A-5 39
Notes to Financial Statements 40
Financial Statements of Individual Funds:
— General Fund:
Comparative Balance Sheet B-1 63
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual B-2 64
Schedule of Revenues and Other Financing
Sources - Budget and Actual B-3 65
Schedule of Expenditures and Other Financing
Uses - Budget and Actual B-4 67
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1986 -•
TABLE OF CONTENTS (CONTINUED)
^
EXHIBIT PAGE
Special Revenue Funds:
Combining Balance Sheet C-1 72
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances C-2 74
Municipal State Aid Fund:
Comparative Balance Sheet C-3 76
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual C-4 77
Revenue Sharing Fund: -�
Comparative Balance Sheet C-5 78
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual C-6 79
Cable TV Fund:
Comparative Balance Sheet C-7 80
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual C-8 81
Grant Management Fund:
Comparative Balance Sheet C-9 82
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual C-10 83
HRA Reimbursement Fund:
Comparative Balance Sheet C-11 84
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual C-12 85
Debt Service Funds:
Combining Balance Sheet D-1 87
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances D-2 88
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1986
TABLE OF CONTENTS (CONTINUED)
EXHIBIT PAGE
Capital Projects Funds:
Combining Balance Sheet E-1 90
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances E-2 92
Special Assessment Funds:
Combining Balance Sheet F-1 97
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances F-2 98
Enterprise Funds:
Combining Balance Sheet G-1 99
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings G-2 100
Combining Statement of Changes in
Financial Position G-3 101
— Liquor Fund:
Comparative Balance Sheet G-4 102
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings G-5 103
Comparative Statement of Changes in
Financial Position G-6 104
Public Utilities Fund:
Comparative Balance Sheet G-7 105
— Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings G-8 106
Comparative Statement of Changes in
Financial Position G-9 107
Internal Service Funds:
Combining Balance Sheet H-1 109
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1986
TABLE OF CONTENTS (CONTINUED)
EXHIBIT PAGE
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings H-2 110
Combining Statement of Changes in
Financial Position H-3 111 —
Employee Benefits Fund:
Comparative Balance Sheet H-4 112
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings H-5 113
Comparative Statement of Changes in
Financial Position H-6 114
Management Information Services Fund:
Comparative Balance Sheet H-7 115
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings H-8 116 --
Comparative Statement of Changes in
Financial Position H-9 117
Trust and Agency Funds:
Combining Balance Sheet I-1 119 —'
Trust Fund Comparative Statement of Revenues,.
Expenditures and Changes in Fund Balance 1-2 120 —.
Agency Funds
Combining Statement of Changes in Assets
and Liabilities I-3 121
Statement of Changes in Assets and Liabilities
for Individual Funds
Six Cities Watershed I-4 122
Hotel/Motel 1-4 122
Deferred Compensation I-5 123
Defeasance I-5 123
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1986
TABLE OF CONTENTS (CONTINUED)
EXHIBIT PAGE
General Fixed Assets:
Comparative Statement of General Fixed Assets J-1 125
Schedule of General Fixed Assets - By Function
and Activity J-2 126
_ Schedule of Changes in General Fixed Assets
By Function and Activity J-3 127
General Long-Term Debt:
Comparative Statement of General Long-Term Debt K-1 129
TABLE PAGE
SUPPLEMENTAL INFORMATION
Auditor's Report on Internal Control L-1 131
Auditor's Comments on Compliance L-2 133
Schedule of Federal Grant Activity L-3 134
Federal Grant Information L-4 135
— Schedule of Assessed Valuation and Long-Term Debt
for the Tax Increment Financing District L-5 136
Schedule of Sources and Uses of Public Funds
— for the Tax Increment Financing District L-6 137
STATISTICAL SECTION
General Governmental Expenditures by Function -
_.. Last Ten Fiscal Years 1 139
General Revenues by Source - Last Ten Fiscal Years 2 140
— Certified Property Tax Levies and Collections -
Last Ten Fiscal Years 3 141
Assessed and Estimated Market Value of All Taxable
Property - Last Ten Fiscal Years 4 142
Statement of Valuations and Levies By Classes
of Property 5 144
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1986 �.
TABLE OF CONTENTS (CONTINUED)
TABLE PAGE
Significant Minnesota Tax Policies 146
Property Tax Rates Per $1,000 of Assessed Value
and Calculated Tax Levies - All Overlapping
Governments - Last Ten Fiscal Years 6 148
Special Assessment Levies and Collections - Last
Ten Fiscal Years 7 150
History of Certified Tax Levies and Actual Mill
Rates - Last Ten Fiscal Years 8 152
Ratio of Net General Bonded Debt to Assessed
Values and net Bonded Debt Per Capita -
Last Ten Fiscal Years 9 154
Computation of Legal Debt Margin 10 156
Computation of Direct and Overlapping Bonded Debt
and Comparative Debt Ratios 11 158
Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General Government
Expenditures - Last Ten Fiscal Years 12 159
Revenue Bond Coverage - Last Ten Fiscal Years 13 160
Demographic Statistics - Last Ten Fiscal Years 14 161
Construction, Bank Deposits and Property Value -
Last Ten Fiscal Years 15 162
Principal Taxpayers 16 163
Insurance Coverage 164
City Capital Improvement Financing Policy 165
Miscellaneous Statistical Information 166
General Information 169
INTRODUCTORY SECTION
a
4
Oft
CITY OF FRIDLEY, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
DECEMBER 31, 1986
ELECTED OFFICIALS
Term of Office
Expires December
Mayor William J. Nee 1986
Councilmember At Large Robert L. Barnette 1986
Councilmember, Ward I Brian A. Goodspeed 1987
Councilmember, Ward II Dennis L. Schneider 1988
Councilmember, Ward III Edward J. Fitzpatrick 1987
Effective January 1987
Mayor William J. Nee 1989
Councilmember At Large Nancy J. Jorgenson 1989
Councilmember, Ward I Brian A. Goodspeed 1987
Councilmember, Ward II Dennis L. Schneider 1988
Councilmember, Ward III Edward J. Fitzpatrick 1987
APPOINTED OFFICIALS
City Manager - Nasim M. Qureshi
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
City Planner - James L. Robinson
Liquor Stores Manager - Kathleen L. Schmitz
1
......
illi CITY ADMINISTRATIVE
unroF
FRJDLEY
Total Authorized Positions (125)
CITY MANAGER (7)
City Manager
- Asst to City Manager
- Economic Devel Asst
..
- Management Assistant
- City Clerk
Administrative Aide-Secretary
- Clerk-Typist --
1 1
FINANCE (20) POLICE (42) FIRE (6)
Finance Director-Treasurer Assistant City Manager- Fire Chief
Public Safety Director-
- MIS Technician Civil Defense Director - Dep Fire Chief
Acctg-Data Proc Clk L Secretary - Captain
Receptionist-Lic Clk - Dep Pub Safety Dir - (2) Firefighter --
ACCOUNTING (9) - Lieutenant - Clk Typist II
Asst Finance Officer (Civil Defense)
- (3) Sergeant
- Finance Assistant
(3) Corporal
- Accounting Specialist
(23) Patrol Officer
- Sr Utility Billing Clk
- Pub Sfty Projects Coor
- Sr Assessment Clk -
-- Crime Prev Spec
- General Accountant
- Office Supervisor
- Acctg-Data Proc Clk `"
- (2) Senior Office Asst
- Acctg-Data Input Clk
- (4) Office Asst -
- Acctg-Data Input Clk
ASSESSING (3)
Assessor
Appraiser
Tax Assessment Clk ..
LIQUOR (4)
LO Store Manager
- Head LQ Clerk
- LQ Store Clerk --
- LQ Store Clerk
2
ORGANIZATIONAL STRUCTURE 1986
i
PUBLIC WORKS (38) RECREATION & NATURALIST (6) COMMUNITY DEVELOPMENT (6)
Director of Public Works Director Emeritus Director of Comm Devel
L Director of Recreation & Nat
— ` Oper Analyst I ,--CODE ENFORCEMENT (3)
Secretary 1. Secretary Chief Bldg Official
ENGINEERING (3) —NATURALIST (2) Plumbing Inspector
-� Asst Pub Works Dir Nat-Res Coordinator
Clerk-Secretary
Engineering Tech Interpretive Specialist
�. Engineering Aide —RECREATION (1) —PLANNING (2)
Planning Coordinator
Program Supervisor
PW MAINTENANCE (32) Planning-Code Enf Clerk
Superintendant
l
Clerk-Secretary
Street Foreman Water Foreman Sewer Foreman Park Foreman
- (3) Maint III - Opr & Maint Spec - (2) Maint III - Maint III
- (2) Opr & Maint Spec - (2) Maint II - Maint II - (2) Opr & Maint
(5) Maint II - Maint I - Maint I - (3) Maint II
- (2) Maint I
3
11=J
CI1YOF
FRIDLEY
CIVIC CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY, MINNESOTA 55432 • PHONE(612)571-3450
June 1, 1987
The Honorable Mayor and City Council
City of Fridley
Fridley, Minnesota 55432
Gentlemen:
In accordance with the Charter , we hereby transmit the
Comprehensive Annual Financial Report of the City of
Fridley for the year ending December 31, 1986.
The Report includes an excellent and comprehensive letter
from Mr. Richard D. Pribyl, Director of Finance and Julie
M. Burt, Assistant Finance Officer, which assists in a
ready understanding of the various accounts and funds and
matters covered by the Report. I 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 also 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,
/11 .0-4A,%-$4
Nasim M. Qureshi
City Manager
6
IRJ
CM'OF
FRIDLEY
CIVIC CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY, MINNESOTA 55432 • PHONE(612)571-3450
June 1, 1987
OMR
Mr. Nasim M. Qureshi, City Manager
Mayor William J. Nee and Council Members
Fridley, Minnesota 55432
Dear Mr. Qureshi, Mayor Nee and Council Members:
The Comprehensive Annual Financial Report of the City of Fridley Minnesota,
for the fiscal year ending December 31, 1986, 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 1985 . It is my belief that the
accompanying fiscal year 1986 financial report continues to meet program
standards and it will be submitted to the Government Finance Officers
Association for review.
The 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.
7
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.
ACCOUNTING SYSTEM AND BUDGETARY CONTROL
The accounting sytem provides for a complete self-balancing group of accounts
for each fund of the City. Accounting records are maintained on the modified
accrual basis for the governmental type funds and the trust and agency funds ,
and the accrual basis of accounting is utilized for the proprietary type funds
as defined in the notes to the financial statements.
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 judgements 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. 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.
THE REPORTING ENTITY AND ITS SERVICES
The funds and entities included in this comprehensive annual financial report
are controlled by or dependent on the City of Fridley. This report follows
_ the criteria as set forth by the National Council on Governmental Accounting,
Statement 3 . Defining the Governmental Reporting Entity. As such , the
a
activities of the Fridley Housing and Redevelopment Authority (HRA) which is a
separate legal entity but is under the immediate control of the City Council
is included as a part of this statement. Financial information relating to the
Fridley Fire Relief Association and the Fridley Police Relief Association is
not presented in this report. In applying the criteria of oversight
responsibility to the two relief associations , it was determined that the
criteria were not applicable to them or any of the school districts that ._
either reside or overlap in the Fridley area. Since there was a lack of
criteria necessary to establish manifestation of oversight responsibility, the
above mentioned entities were excluded from this report.
The City provides a full range of municipal services. These include police,
fire, parks and recreation, public improvements, street maintenance, sanitary
sewer and water utilities, liquor sales, planning and general administrative
services.
CITY FINANCIAL PROSPECTS FOR FUTURE YEARS
The financial position of the City has remained sound over the past year, with
actual operating results exceeding original estimates. Some of the important '^
factors which enable the City to maintain this constant level are:
1. Estimated revenues are realized or exceeded. ^-
2. All departments operate within budget appropriations.
3. Current ad valorem tax collections realized were 97.5% of tax levy.
4. Investment income continues to rise over the previous year. 1986 earnings
totaled $3,459,664, an increase of 49.45% over the past year.
The financial outlook for the immediate future also looks good considering our
stable condition. However, in a time when the federal and state levels are
battling budget shortfalls, the City will be experiencing decreasing and in
some cases the elimination of intergovernmental aids.
In order to continue providing the existing level of services , the City will
need to evaluate and improve the cost-effectiveness of its programs and
services which may ultimately result in a greater reliance on local revenue
sources including property taxes and user fees.
The City of Fridley is an older metropolitan community and with the help of
the Housing and Redevelopment Authority has been successful in attracting many ^,
redevelopment projects to the City in the past, and for the future . In most
recent years, major revitalization was completed in the Center City area with
the construction of a medical facility, a three story office complex and a
three story midwest headquarters for Target, Inc. During 1986 , negotiations
continued on a proposed apartment complex and site improvements were under way
for a multimillion dollar office complex. Late in 1986, architects were hired
and preliminary plans were drawn for a project that will upgrade the .,
appearance and traffic control of the major thoroughfares and intersections
within the City. Actual construction will not begin until 1987 . Many of
these projects could not have been undertaken without the tax increment ..,
financing tool.
10
1987 will be marked as the year of change for the City of Fridley .
Consultants have been hired to review the records of the City, with the end
result being recommendations for retention schedules, the implementation of a
central filing system, a complete database of all the files in the City and a
disaster recovery plan. Architects have been hired to review existing space
needs in City Hall and propose a plan for remodeling. Finally consultants
will be hired to review and propose an upgrade path for both the
telecommunications and computer systems currently operating in the City. The
end result should be a more efficient run operation with increased ability to
meet the demands of an ever changing municipal environment.
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 5 . 72% to
12.5% during the year. The 1986 earnings shown with prior years ' earnings
were distributed to the following fund types:
1986 1985 1984 1983
General $ 459,024 $ 444,013 $ 397,975 $ 277,480
Special Revenue 150,254 143,946 237,632 244,579
•_ Debt Service 98,824 8,328 66,799 52,355
Capital Projects 989,438 284,905 150,467 148,778
Special Assessments 1,146,034 869,211 862,158 727,703
Enterprise 493,004 459,648 454,084 373,838
Internal Service 115,560 103,455 77,818 74,470
Expendable Trust 7,526 1,486 3,725 2,112
$3,459,664 $2,314,992 $2,250,658 $1,901,315
DEBT ADMINISTRATION
Net general bonded debt per capita, and the percentage of the net general
bonded debt to assessed value are useful indicators of the City ' s debt
position. At December 31, 1986 the City of Fridley' s debt service funds
provided more capital than necessary to cover the net general bonded debt.
On August 15, 1986 the City issued $10 , 045 ,000 of General Obligation Tax
Increment Refunding Bonds and $2,705 ,000 of General Obligation Improvement
Refunding Bonds at an effective interest rate of 7.2178%. The proceeds were
used to refund the Variable Rate General Obligation Tax Increment and
Improvement Bonds, Series 1985, respectively.
I
11
Remaining
Date of Amount Years Interest
Issue Outstanding of Issue Rate _
1986 10,045,000 14 7.22%
1986 2,705,000 14 7.22%
1985 3,890,000 14 5.50 - 9.00% "'
1982 910,000 13 8.50 - 10.70%
1980 1,000,000 15 7.25 - 8.50%
1977 215,000 2 3.10 - 4.90% _
1976 100,000 3 3.75 - 6.00%
1975 55,000 2 6.00%
1972 375,000 7 3.80 - 5.30%
1967 20,000 1 4.20 - 4.50%
1965 70,000 1 3.20 - 3.50%
$19,385,000
The City of Fridley has, since 1982, maintained a credit rating of a Aal on
its long-term bonds.
As of December 31, 1986, the City had issued $82,125,000 in Industrial Revenue
Bonds which are permitted under Minnesota Statutes, Chapter 474. Listed below
are the bonds issued: .--
Company Date of Issue Amount
Safetrans 03/21/77 $ 1,500,000
Perlman Rocque 05/07/79 2,500,000
Medtronics 11/05/79 1,000,000
Simer Pump 06/02/80 550,000 —
G. T. A. 10/20/80 6,000,000
Win-Stevens Datsun, Inc. 01/12/81 600,000
WWH Properties 11/23/81 1,250,000 ^
Webb Company 12/14/81 9,000,000
LaMaur, Inc. 02/02/82 1,000,000
Gerald Paschke 05/03/82 750,000
Columbia Park Properties 06/07/82 4,000,000
Kuether Distributing, Inc. 10/04/82 2,000,000
73rd Avenue Partnership 10/25/82 1,500,000
ELO Engineering 09/12/83 1,300,000 _
Skywood Mall 11/21/83 7,000,000
Frank Shear Associates 12/19/83 2,175,000
Johnson Printing 12/19/83 2,400,000
Longview Fibre Company 03/26/84 3,200,000
River Road Investors 07/16/84 6,190,000
North Freeway Investors 07/16/84 7,730,000
Gerald W. Paschke, IV 07/01/85 720,000 -
Columbia Park Properties 12/16/85 4,360,000
Fridley Business Plaza 09/22/86 2,800,000
53rd Way Investors 10/06/86 6,300,000
Industrial Boulevard Investors 10/06/86 6,300,000
$82,125,000
These Industrial Revenue Bonds are not a liability of the City and as such are
not pledged by the full faith and credit of the City. We act only as an
administrating agent in the issuance of these bonds . The bonds are a _.
liability of each company referenced above.
12
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.
The Fiscal Disparity Law has had the following impact on the taxable
valuations of the City for taxes collectible for years 1986 , 1985 , 1984, and
1983:
1986 1985 1984 1983
Taxable values-
- City
Personal property $ 11,245,936 $ 9,259,749 $ 9,143,348 $ 8,488,759
Real estate 234,794,759 224,157,483 224,638,752 220,511,750
Less tax increment
project valuations (9,032,222) (5,458,497) (2,765,895) (3,951,300)
Subtotal City 237,008,473 227,958,735 231,016,205 225,049,209
Areawide allocation
Contribution to "Pool" (29,730,694) (29,835,444) (27,102,595) (25,629,645)
Distribution from "Pool" 18,296,235 18,142,244 15,369,625 12,509,174
Subtotal Pool (11,434,459) (11,693,200) (11,732,970) (13,120,471)
Total Taxable Value $225,574,014 $216,265,535 $219,283,235 $211,928,738
TAX INCREMENT DISTRICTS
The City Council took action on May 7 , 1979 to form the first of eight 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 four years, the Center City Tax Increment Area has realized
the largest amount of growth. A clinic for a major health maintenance
organization and two multi-level office complex's were completed. This year,
Center City still remains the site for a potential six story apartment
building with a retail sales center to be built around it. In the future,
this area will be benefited by a City wide project that will upgrade the
- appearance of the main thoroughfares in the City with the use of improved
lighting and landscaping. The project also includes plans to upgrade the
major intersections for improved traffic control and pedestrian accessability.
This year was also full of negotiations and plans for our Lake Pointe (100
Twin) District which is the site of a proposed multi-structure office park.
When completed, the Corporate Center will be unlike any other in the City.
13
GENERAL FUND
The General Fund accounts for all financial transactions not accounted for in
any other fund. Revenues (including transfers) of the General Fund totaled
$7 , 200, 637 , an increase of $197 , 357 from 1985 . Expenditures (including
transfers) for the General Fund totaled $6,634, 688 , an increase of $309 , 611
over the previous year. The fund balance increased by $565 ,949 and was
$6,640,799 at the end of the year.
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.
The following table shows the beginning-year General Fund Unreserved-
Undesignated balances as compared to the adopted budget of the year indicated.
Undesignated Fund Balance
General Beginning of Year
Fund Budget Amount % of Budget _
1982 6,180,388 994,413 16.1
1983 6,366,475 610,071 9.6
1984 7,230,491 1,531,908 21.2
1985 7,413,769 796,365 10.7
1986 7,186,500 1,298,310 18.1
The amount of revenue from various sources and the changes from the previous
year are summarized in the following graph and table.
GENERAL FUND REVENUES BY SOURCE -�
TRANSFERS (5.2%)
MISCELLANEOUS (3.2%)
it
INTEREST ON INVESTMENTS (6.44.
FINES & FORFEITS (4.04) _s
GENERAL PROPERTY TAXES (36.14)
CHARGES FOR SERVICES (2.2%) •`:
.mss
:G14 .cm--".... .
'igfitE?:4t-
LICENSES P
6 ERMITS (4.28)
INTERGOVERNMENTAL GO V
ERNM
ENT A
L
REVENUE (38.7%) -
-
14
-. Increase
1986 Percent (Decrease)
Amount of Total from 1985
General property taxes $2,598,108 36.1 $ 47,168
Licenses and permits 304,028 4.2 (63,196)
Intergovernmental revenue 2,784,222 38.7 163,155
— Charges for services 157,829 2.2 4,346
Fines and forfeits 287,710 4.0 (67,246)
Interest on investments 459,024 6.4 15,011
— Miscellaneous 234,548 3.2 98,466
Transfers 375,168 5.2 (347)
Total revenue $7,200,637 100.0% $ 197,357
General property taxes accounted for 36.1% of the General Fund revenues (35.1%
in 1985) and current tax collections were 97 . 51% of the total tax levy for
19 8 6.
■ GENERAL FUND EXPENDITURES BY FUNCTION
— TRANSFERS (2.9%)
CAPITAL OUTIAY (5.1% ENERAL GOVERNMENT (13.9%)
9
RECREATION & NATURALIST (8.1t.
"b. f•.
PUBLIC WORKS CM 4%) `:-..'::....... .:..:.
:....::..:.::::. `':::::: .� PUBLIC SAFETY (38.9%)
CIVIC CENTER (2.7%)
.. Changes in levels of expenditures for major functions of the City over the
preceding year are shown in the following graph and table.
_. Increase
1986 Percent (Decrease)
Expenditures by Function Amount of Total from 1985
"- General government $ 919,495 13.9 $170,803
Public safety 2,576,847 38.9 306,156
Civic center 180,839 2.7 18,619
-. Public works 1,886,888 28.4 (43,046)
Recreation and Naturalist 535,430 8.1 (371)
Capital outlay 340,252 5.1 46,382
.. Transfers 194,937 2.9 (188,932)
$6,634,688 100.0% $309,611
15
The mill rates by purpose for the past two fiscal years are as follows:
Purpose 1986 1985
General Fund 13.895 14.283
General Debt Service .158 .163
Capital Improvement .203 .208 ,■
Agency Fund .074 .240
14.330 14.894
SPECIAL REVENUE FUNDS
._
Purpose
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 provisions , or local ordinance to finance particular
functions or activities of government.
Municipal State-Aid Fund
Gasoline tax collection apportioned to the City by the State of Minnesota for
street construction is accounted for in this fund . Gasoline tax
apportionments used for maintenance purposes are accounted for in the General
Fund. Transfers are also made back to this fund from Special Assessment
Funds. Such funds are derived from the excess of the construction funds ._
received from the State of Minnesota plus the special assessments levied less
the cost of the project. This excess is transferred back to the Municipal
State-Aid Fund where the funds are earmarked for seal coating projects or the ^.
City's share of sidewalk or street improvement projects.
The fund balance at December 31, 1986 was $1 , 510 , 727 which was an increase
from the previous year of $263,541. Revenues totaled $523 , 984 , which is the --
combination of State Aid and interest earned on the cash held in this fund.
The State Aid portion of the revenues increased from the previous year by
$296,569. The expenditures from this fund were in the form of transfers to
other funds and increased this year by $117,580.
Revenue Sharing Fund
The Revenue Sharing Fund was established to account for the revenue received
from the Federal Government in accordance with the "State and Local Fiscal
Assistance Act of 1972 . " Expenditure of these funds can be made only in --
accordance with the provisions of that act. Revenue Sharing funds are
transferred from the Revenue Sharing Fund to the General Fund where the
detailed amounts are budgeted. During 1986, transfers of these types totaled
$179,297.
The 1986 Revenue Sharing funds granted to the City were substantially reduced
from prior years and not reauthorized for future years . The program was -
terminated on September 16, 1986 due to the federal budget reductions required
by the Gramm-Rudman-Hollings Act.
Revenue Sharing funds received for 1986 totaled $127,907 a decrease of $88,417
from 1985. The fund balance at December 31 , 1986 is $-0- , representing a
decrease of $41,836 from 1985 and the closing of this fund. _.
10
Cable TV Fund
The Cable Television Fund was established to account for franchise fees (5% of
CATV subscriber revenues) . These revenues are dedicated to three uses : 1)
establish a comprehensive Broadband Telecommunications Network regulating
program, 2) develop and operate governmental and other access channels , 3)
establish a CATV Advisory Committee, advising the City Council on CATV
matters. As of December 31, 1986 the fund balance totaled $103,777.
Grant Management Fund
The Grant Management Fund was established to administer 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 funds are provided in advance to be
spent on specific activities outlined in the grant.
Grant funds received during 1986 totaled $155,459 a decrease of $96 , 744 from
1985. The decline represents the elimination of a DWI program and reduced
Community Development Block Grant funds.
WPM
The fund balance as of December 31, 1986 was $1, 569 which represents grant
funds received during the year that have not been expended as of December 31,
,... 1986.
HRA Reimbursement Fund
The HRA Reimbursement Fund, formerly the Home Ownership Fund, was originally
set-up to control all grant proceeds and expenditures that were related to the
home ownership and rehabilitation function. This type of activity within the
City has diminished to the point where the function of this fund has changed
in character. During 1986, this fund was used jointly with the reimbursement
activity for providing professional services from the City staff to the
Fridley Housing and Redevelopment Authority. The expenditures during 1986 in
the form of professional services were $101,489, of which there was an equal
amount of reimbursement for services rendered leaving the fund balance at
December 31, 1986 at zero.
DEBT SERVICE FUNDS
Purpose
_ The Debt Service Funds account for money devoted to the payment of interest
and principal on long-term general obligation debt (other than Special
Assessment and Enterprise Funds Debt Service) .
The funds are used for the accumulation of monies for payment of general
obligation bonds and interest thereon. Property taxes provide the necessary
revenue. During 1986, revenues amounted to $133 ,997 , of which $27 , 654 was
from property tax collections. The City has two general obligation issues
outstanding which are carried in this fund, a Revenue Bond in the amount of
$4,070,000 and a General Obligation Tax Increment Refunding Bond, Series 1986,
in the amount of $10,045,000 that was used to refund the Variable Rate Tax
Increment Bonds of 1985 . As of December 31, 1986 , $13 , 935 ,000 was the
outstanding principal and the fund balance was $630,064.
17
CAPITAL PROJECTS FUNDS
Purpose
Capital Projects Funds are used for acquisition and construction of capital
facilities other than those financed by Special Assessments and Enterprise
funds. --
Capital Improvement Fund
This fund was established to account for the revenues and expenditures of a
revolving type Capital Improvement Fund. The City concluded that the current
and future cost of replacing or repairing many of the large assets owned by
the City is growing steadily. The monies set aside in this fund are to
finance future replacement of assets that are aging or have become obsolete.
As of December 31, 1986, the fund balance was $1,797,232.
Sears Fund
This fund was set up to account for revenues and expenditures relating to the
purchase and development of park land formerly owned by Sears Roebuck. The
objective of the City is to create a major outdoor athletic recreational
facility. This facility includes six softball fields , four football fields
and a central building that houses pressboxes, a first aid room and concession
areas. The grounds have picnic areas and walking trails that tie into the
rest of the City's walkways. During 1986, $5,531 was earned from interest on
investments and there were no expenditures during the year, leaving a fund
balance at December 31, of $62,042. The park is being financed by donations
from civic organizations and private industry with additional commitments to
be received during 1987.
Civic Center Improvement Fund
This fund was established to account for the revenues and expenditures ._
relating to the improvement of the Fridley Civic Center. During 1986 ,
expenditures totaled $5 ,476 , leaving a fund balance at December 31 , of
$601,028.
HRA Fund
The HRA Fund was established to account for the activity of the Fridley --
Housing and Redevelopment Authority (HRA) . The Fridley HRA has established
eight tax increment areas that are financing tax increment debt and project
costs. The major development has occurred over the past years in the Center
City area and this year negotiations continue to take place that will create
two multimillion dollar projects. One of these projects is in our Center City
area and the other is in the Lake Pointe area.
During 1986, the City sold $10,045,000 in General Obligation Tax Increment
Refunding Bonds that were used to refund the Variable Rate General Obligation
Tax Increment Bonds, series 1985. The bond proceeds are being used to correct
problems with site locations that, in the past, made certain prime locations
undevelopable. The Tax Increment Financing tool has been very successful
within our City and without it numerous developments would not have occurred.
During 1986, expenditures and other financing uses exceeded revenues and other
financing sources by $2,983,993, leaving a fund balance at December 31 , 1986
of $9,819,982.
18
SPECIAL ASSESSMENT FUNDS
Special Assessment Funds are used to finance and account for the construction
and financing of certain public improvements such as street improvements ,
sidewalk improvements, storm sewers, and water and sewer lines which may be
paid wholly or in part from the special assessments levied against benefited
- property. The fact that the special assessments are paid for completely or in
part by property owners in a limited geographical area who specifically
benefit distinguishes them from improvements which benefit the entire
community and which are paid for out of general revenue or through the
issuance of general obligation bonds.
The City employs the practice of self financing improvements during the
construction period of projects. Permanent bonds are normally issued after
the assessment rolls have been approved by the City Council and after the
initial prepayments of assessments have been made by property owners. This
practice allows the City to keep the number of permanent bonds issued by the
City to a minimum. Construction in progress is shown in the General Fixed
Asset Group of Accounts.
Revolving Fund
The purpose of this fund is to provide temporary financing for small
improvement projects undertaken by the City.
Special Assessment Fund
The Special Assessment Fund is used to account for the collection of
assessments against benefited property owners and the disbursement of
assessment collections for the payment of bonds and interest thereon. It also
— handles the receipt of bond proceeds and the disbursement of the proceeds for
construction work performed. During 1986 , General Obligation Refunding
Improvement Bonds were issued in the amount of $2,705,000 which were used to
... refund the Variable Rate General Obligation Improvement Bonds of 1985.
The combined fund balance increased during 1986 by $1, 502 , 054 bringing the
combined fund balance at December 31, 1986 to $5,983,237.
ENTERPRISE FUNDS
Purpose
OMR 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 the municipal
liquor stores . Except for ownership , Enterprise Funds bear a close
resemblance to privately owned utility or service enterprises.
Liquor Fund
The Liquor Fund was established to account for the operation and financing of
M•11 the City-owned municipal liquor stores. The City operates two liquor stores ,
one at 6289 Highway 65 and the other at 214 Mississippi Street. The City owns
the store at the Highway 65 location and currently has a three year lease at
the other store . In 1984 , the City changed its sales philosophy to the
IMM
19
wholesale approach so that we could remain competitive with three of the
neighboring communities which use wholesale pricing. As the numbers indicate
below, 1985 was not a good year for the liquor stores. With that in mind for
1986 , we applied a more aggressive marketing strategy , reviewed the --
effectiveness of our pricing and did an overall evaluation of the operating
policies and procedures of the business.
Shown below is a summary of liquor store operations for the years 1986 , 1985 ,
1984, 1983, and 1982.
1986 1985 1984 1983 1982 "'
Sales $2,547,533 $2,303,732 $1,645,005 $1,618,204 $1,714,953
Gross profit 485,813 324,535 272,073 314,653 340,059 -•
Net income (loss)
before transfers 105,059 (48,139) 15,201 102,385 168,603
Transfers to ..,
General Fund $ 50,000 $ -0- $ 120,000 $ 150,000 $ 100,000
Retained earnings of the Liquor Fund were $888 ,058 on December 31, 1986 ,
compared to $832,999 on December 31, 1985.
Public Utility Fund
This fund accounts for the operation and financing of the City-owned sewer and
water systems.
In 1969, the fund assumed a $770,000 liability for bonds payable along with
future interest obligations of the Water No. 75 Improvement Bonds . A total
principal amount of $70,000 for this bond issue was outstanding on December
31, 1986. Although deferred tax levies were set forth in the resolution for --
retirement of the bonds and interest, it is the intention of the City to
cancel the tax levies annually for this bond issue and to provide the
necessary revenue from the Public Utility Fund. _.
Included in the assets of the fund is a receivable from the Metropolitan Waste
Control Commission of $310,002 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
credit 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 and
1984. 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, 1986 were $7,055,851 compared to $6 , 663 , 160
on December 31, 1985. --
Shown below is a summary of operations of the Public Utility Fund for the
years 1986, 1985, 1984, 1983, and 1982.
20
1986 1985 1984 1983 1982
Operating revenue $2,434,100 $2,296,415 $2,401,206 $1,928,973 $1,753,918
Operating expenses 2,522,048 2,253,164 2,043,653 1,850,966 1,767,818
Operating income
(loss) $ (87,948)$ 43,251 $ 357,553 $ 78,007 $ (13,900)
INTERNAL SERVICE FUNDS
Purpose
Internal Service Funds are set up to account for goods and services provided
by designated departments on a cost reimbursement basis to other departments
within a single governmental unit.
Employee Benefits Fund
This fund was originally set up to account for all fringe benefits in one
central location. With the use of the new in-house computer system, it is now
possible to allocate costs to the proper departments when incurred. Health
and Life insurance are still charged here and then allocated back to the
benefited departments. Under the old system, it was necessary to charge all
fringe benefits to the Employee Benefits Fund to centralize the costs for
management review. Management now can call for these same costs to be
summarized through the use of a simple program. This type of procedure
— enhances the City's budgetary control. Amounts accumulated for annual leave
are maintained in this fund. The City has a policy that effectively places a
ceiling on annual leave amounts to keep the dilution of City assets to a
minimum upon employee retirement. During 1986 , operating and non-operating
revenues exceeded operating expenses by $84,396 resulting in a fund equity at
December 31, 1986 of $436,664.
Management Information Services Fund
This fund was created to account for revenues and expenses associated with th'
operation of a computerized information system the City has placed into use.
Two years ago, the City determined that an in-house computer was the solution
to cost containment in the information processing area. During this time, our
internal staff has been able to improve on the existing software by creating
custom reports necessary for individual needs. However, even with the level
of expertise we have on staff, we are unable to meet all of our needs via the
existing computer system. Simultaneously, the vendor of the existing software
has reached its limitations with regards to further upgrade this system.
Therefore, in 1987 a consultant will be hired to review the needs of the City
and the available alternatives. Chances are there will be no major financial
commitment made until 1988 which is the year the original loan to start this
fund will be paid off.
Revenues in the form of charges for services during 1986 .amount to $118 , 241
�- and the expenses were $78,034. The fund balance as of December 31 , 1986 was
$115,268.
21
TRUST AND AGENCY FUNDS
Purpose
Trust and Agency Funds account for assets held by the City as a trustee or
agent for individuals, private organizations and other governmental units.
Expendable Trust Fund
This fund maintained by the City is for the purpose of holding escrow deposits ._
relating to industrial development revenue bond and mortgage issues. The fund
balance as of December 31, 1986 was $15,019.
Agency Funds -
Six Cities Watershed
This fund maintained by the city is for the purpose of collecting taxes
received on behalf of an overlapping governmental unit, the Six Cities
Watershed District. The funds are collected and disbursed to the Six Cities
■•
Watershed Management Organization.
Hotel/Motel
This fund is maintained by the City for the purpose of collecting a three
percent tax that has been imposed on all the hotels and motels in the north
suburban area. The collection process is administered by the City and the -,
funds are then disbursed to the North Metro Convention and Tourism Bureau.
Deferred Compensation
This fund is maintained by the City to account for deposits held in trust with
the International City Managers Association (ICMA) on behalf of the City of
Fridley employees. Employees make pretax contributions to this organization -"
throughout their careers and it is used as a retirement benefit. These
contributions remain property of the City and are subject to claims of the
City's creditors until withdrawn by the employee. The possibility of these
being used for City creditors is remote.
Defeasance
This fund is maintained by the City to account for deposits held by the City
on behalf of the First Trust Company, Inc. of St. Paul, the escrow agent for
the defeased 1985 General Obligation Tax Increment Bonds. ---
22
GENERAL FIXED ASSETS ACCOUNT GROUP
Purpose
General Fixed Assets are those fixed assets of a governmental jurisdiction
which are not accounted for in an Enterprise or Internal Service Fund. To be
... classified as a fixed asset in this category, a specific piece of property
must possess three attributes: 1) it must be tangible in nature ; 2) it must
have a life longer than the fiscal year; and 3) it must be of significant
value.
GENERAL LONG TERM DEBT ACCOUNT GROUP
Purpose
.� General obligation bonds and other forms of long-term debt supported by
general revenues are obligations of a governmental unit as a whole and not its
individual constituent funds. Moreover, the proceeds of such debt may be
spent on facilities which are utilized in the operation of several funds. For
these reasons, the amount of unmatured long-term indebtedness which is backed
by the full faith and credit of the City are accounted for and reported in a
separate self-balancing group of accounts entitled "General Long Term Debt
Account Group" . The group includes (in addition to conventional term debt)
general obligation bonds, time warrants and notes which have a maturity of
more than one year from the date of issuance. During the year, the City
• issued $10,045,000 in General Obligation Tax Increment Refunding Bonds which
was used to refund the Variable Rate General Obligation Tax Increment Bonds of
1985, and retired the final $35 ,000 of principal on the Civic Center bond
issue.
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.
23
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 George M. Hansen Company P.A. , Certified --
Public Accountants is included in this report.
—
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE
The Governmental 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, 1985.
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. ••■■
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 and the professional guidance of George M. Hansen, Company, P.A. —
We would also like to express our appreciation to the Mayor and members of the
City Council for their interest and support in planning and conducting the
financial operations of the City in a responsible and progressive manner.
41R ectfull submitted,
0 c„,,,,Ln,. k-6,- —
Richard D. Pribyl Julie M. Burt
Finance Director Assistant Finance Officer —
24
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, 1985
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
— Association of the United States and Canada to
governmental units and public employee retirement
systems whose comprehensive annual financial
reports (CAFR's) are judged to substantially
conform to program standards.
��apN��Cf9s ��Q4
- 99 Ot/a4Aii
— �(UMTFDSTAT1s' r v
W .NO President
f i CA NA[DA
PORATC ON J� tA o
i1141;al."r`
d�®
Executive Director
26
FINANCIAL SECTION
0.
..
JIM
AUDITOR'S OPINION
'— G 1 V i H C o GEORGE M. HANSEN COMPANY, P.A.
A Professional Corporation of Certified Public Accountants
AUDITORS' OPINION
City Council
City of Fridley, Minnesota
We have examined the general purpose financial statements of the City of
Fridley, Minnesota, as of and for the year ended December 31, 1986, as listed
in the table of contents . Our examination was made in accordance with
generally accepted auditing standards, and accordingly included such tests of
the accounting records and such other auditing procedures as we considered
necessary in the circumstances.
In our opinion, the general purpose financial statements referred to above
present fairly the financial position of the City of Fridley, Minnesota, at
December 31 , 1986 , and the results of its operations and the changes in
financial position of its proprietary fund types for the year then ended, in
conformity with generally accepted accounting principles applied on a basis
consistent with that of the preceding year.
Our examination was made for the purpose of forming an opinion on the general
purpose financial statements taken as a whole. The combining, individual
fund, account group and supplemental information financial statements and
schedules listed in the table of contents are presented for purposes of
.-. additional analysis and are not a required part of the general purpose
financial statements of the City of Fridley, Minnesota. The information has
been subjected to the auditing procedures applied in the examination 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. Our examination did not include the statistical information
listed in the table of contents. l.o
May 22, 1987
1433 UTICA AVENUE SOUTH, SUITE 175 MINNEAPOLIS, MINNESOTA 55416 612/546-2566
27
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 Changes in Financial Position - All
Proprietary Fund Types
CITY OF FRIDLEY, MINNESOTA
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 1986
Governmental Fund Types
Special Debt Capital Special
General Revenue Service Projects Assessment
Assets
Cash $ 366,557 $ 8,316 $ 2,154 $ 75,824 $ 51,781
Cash in escrow
Investments 5,473,886 1,588,239 628,333 11,762,274 12,367,645
Receivables:
Accounts 27,140 17,690
Taxes 497,801 6,251 488,132
Special Assessments 8,951 3,987,416
Interest 583,162 8,100 335 122,872 49,051
Due from other funds 13,687 36,771 87,868
Due from other governments 53,244 104,506 16,591
Advance to other funds 25,000
Deposits
Inventories 17,752
Prepaid expenditures/expense 35,465
Long term receivable
Restricted assets:
Cash
Investments
Interest receivable
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 $7,063,958 $1,740,538 $637,073 $12,510,873 $16,560,352
(Continued)
30
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 1986 1985
$ 142,703 $ 328 $ 482,993 $ $ $ 1,130,656 $ 1,662,790
14,307,623
5,065,292 1,308,768 1,853,434 40,047,871 25,279,746
_. 681,741 2,309 728,880 663,783
1,858 994,042 205,143
3,996,367 3,839,415
22,819 5,507 272 792,118 416,830
138,326 199,095
61,208 235,549 421,970
25,000 50,000
1,425,898 1,425,898 1,041,402
477,325 495,077 384,313
132,479 167,944
294,430 294,430 316,874
16,217 16,217 13,638
59,913 59,913 94,855
262 262
12,130,815 103,760 24,450,546 36,685,121 36,719,008
538,554 538,554 588,470
13,396,446 13,396,446 15,066,530
$19,085,204 $1,418,363 $3,766,764 $24,450,546 $13,935,000 $101,168,671 $101,271,485
31
CITY OF FRIDLEY, MINNESOTA
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS (Continued)
December 31, 1986 ,_
Governmental Fund Types _
Special Debt Capital Special
General Revenue Service Projects Assessment
Liabilities and Fund Equity
Liabilities
Advance from city's
general account $ $ 98,974 $ 3,207 $ $ 972,024
Accounts payable 97,367 1,813 1,213 6,378 40,903 _
Deposits payable 25,189 147,772
Contracts payable 48,216
Salaries payable 113,471 4,590 784
Leave payable "-
Deferred revenue 183,631 2,589 120,548 3,987,416
Due to other funds 10,000 101,555
Due to other governments 3,501 9,088 2,108 .-.
Advance from other fund
Bonds payable 5,380,000
Total liabilities 423,159 124,465 7,009 230,589 10,577,115
Fund Equity
Contributed capital
Investment in general --
fixed assets
Retained earnings -
Reserved
Unreserved
Fund balance:
Reserved 474,027 538,554 10,446,010 2,049,501
Unreserved
Designated 4,441,931 1,822,232
Undesignated 1,724,841 1,616,073 91,510 12,042 3,933,736
Total retained earnings
and fund balance 6,640,799 1,616,073 630,064 12,280,284 5,983,237
Total fund equity 6,640,799 1,616,073 630,064 12,280,284 5,983,237
Total liabilities and
fund equity $7,063,958 $1,740,538 $637,073 $12,510,873 $16,560,352
See Accompanying Notes to Financial Statements
32
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 1986 1985
$ $ 17,734 $ $ $ $ 1,091,939 $ 1,766,344
.. 163,289 1,114 312,077 240,610
3,740,343 3,913,304 1,243,971
48,216
.. 19,302 138,147 115,004
797,583 797,583 834,301
803 4,294,987 3,990,398
1,771 25,000 138,326 199,095
.. 25,748 10,599 51,044 53,244
25,000 25,000 50,000
70,000 13,935,000 19,385,000 22,125,000
280,110 866,431 3,751,745 -0- 13,935,000 30,195,623 30,617,967
10,861,185 10,861,185 10,861,185
24,450,546 24,450,546 24,327,437
.. 6,392 551,932 558,324 429,600
7,937,517 7,937,517 7,496,159
-. 13,508,092 19,959,085
6,264,163 6,097,342
15,019 7,393,221 1,482,710
7,943,909 551,932 15,019 -0- -0- 35,661,317 35,464,896
18,805,094 551,932 15,019 24,450,546 -0- 70,973,048 70,653,518
$19,085,204 $1,418,363 $3,766,764 $24,450,546 $13,935,000 $101,168,671 $101,271,485
33
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, 1986
Governmental Fund Types
Special Debt
General Revenue Service
Revenues:
Taxes and special assessments $2,598,108 $ $ 27,654
Licenses and permits 304,028 54,934 -
Intergovernmental revenue 2,784,222 778,576 7,519
Charges for services 157,829
Fines and forfeits 287,710 ...
Interest on investments 459,024 150,254 98,824
Miscellaneous 234,548 14,005
Total revenues 6,825,469 997,769 133,997
Expenditures:
Current
General government 919,495 310,880 79,634
Public safety 2,576,847
Civic center 180,839
Public works 1,886,888 --
Recreation and naturalist 535,430
Capital projects
Debt service 1,006,771
Capital outlay 340,252 54,242
Total expenditures 6,439,751 365,122 1,086,405
Excess (deficiency) of revenues
over expenditures 385,718 632,647 (952,408)
Other financing sources (uses) :
Bond proceeds 76,825
Operating transfers in 375,167 19,381 917,177
Operating transfers out (194,936) (439,740)
Remittance to escrow agent
Defeasance of debt
Total other financing sources (uses) 180,231 (420,359) 994,002
Excess (deficiency) of revenues
and other financing sources over
expenditures and other financing ' -
uses 565,949 212,288 41,594
Fund balance January 1 6,074,850 1,403,785 588,470 ._
Fund balance December 31 $6,640,799 $1,616,073 $ 630,064
See Accompanying Notes to Financial Statements
34
Exhibit A-2
Fiduciary
Fund Type Totals
Capital Special Trust and (Memorandum Only)
Projects Assessment Agency 1986 1985
$ 894,936 $1,364,971 $ $ 4,885,669 $ 4,269,937
358,962 422,606
17,399 64,463 3,652,179 3,402,703
157,829 153,483
287,710 354,956
989,438 1,146,034 7,526 2,851,100 1,751,889
183,043 8,327 439,923 401,216
2,084,816 2,583,795 7,526 12,633,372 10,756,790
567,667 1,877,676 985,091
2,576,847 2,270,691
180,839 162,220
1,886,888 2,212,406
535,430 535,801
714,677 714,677 1,203,188
509,052 1,515,823 768,547
1,649,239 2,043,733 5,834,159
2,216,906 1,223,729 -0- 11,331,913 13,972,103
(132,090) 1,360,066 7,526 1,301,459 (3,215,313)
9,935,119 10,011,943 17,407,887
76,904 227,612 1,616,241 748,133
(928,558) (15,624) (1,578,859) (773,022)
... (104,447) (70,000) (174,447)
(11,550,000) (11,550,000)
(2,570,982) 141,988 -0- (1,675,120) 17,382,998
(2,703,072) 1,502,054 7,526 (373,661) 14,167,685
_.. 14,983,356 4,481,183 7,493 27,539,137 13,371,452
$12,280,284 $5,983,237 $15,019 $27,165,476 $27,539,137
35
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, 1986
General Fund
Variance
Favorable
Budget Actual (Unfavorable)
Revenues: .,
Taxes and special assessments $2,547,612 $2,598,108 $ 50,496
Licenses and permits 260,426 304,028 43,602
Intergovernmental revenue 2,670,978 2,784,222 113,244
Charges for services 121,828 157,829 36,001
Fines and forfeits 160,462 287,710 127,248
Interest on investments 290,000 459,024 169,024
Miscellaneous 68,246 234,548 166,302
Total revenues 6,119,552 6,825,469 705,917
Expenditures:
Current -
General government 980,416 919,495 60,921
Public safety 2,601,406 2,576,847 24,559 -,
Civic center 202,867 180,839 22,028
Public works 2,027,040 1,886,888 140,152
Recreation and naturalist 599,919 535,430 64,489
Reserve for contingency 69,762 69,762
Capital outlay 477,301 340,252 137,049
Total expenditures 6,958,711 6,439,751 518,960
Excess (deficiency) of revenues
over expenditures (839,159) 385,718 1,224,877
Other financing sources (uses) :
Operating transfers in 425,515 375,167 (50,348)
Operating transfers out (227,789) (194,936) 32,853 ._
Total other financing sources (uses) 197,726 180,231 (17,495)
Excess (deficiency) of revenues
and other financing sources over
expenditures and other financing
uses (641,433) 565,949 1,207,382
Fund balance January 1 6,074,850 6,074,850
Fund balance December 31 $5,433,417 $6,640,799 $1,207,382 -^
See Accompanying Notes to Financial Statements
36
Exhibit A-3
Totals
Special Revenue Fund Types (Memorandum Only)
.. Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
$ $ $ $2,547,612 $2,598,108 $ 50,496
52,978 54,934 1,956 313,404 358,962 45,558
,_ 776,696 778,576 1,880 3,447,674 3,562,798 115,124
121,828 157,829 36,001
160,462 287,710 127,248
131,588 150,254 18,666 421,588 609,278 187,690
14,005 14,005 82,251 248,553 166,302
975,267 997,769 22,502 7,094,819 7,823,238 728,419
314,164 310,880 3,284 1,294,580 1,230,375 64,205
2,601,406 2,576,847 24,559
202,867 180,839 22,028
2,027,040 1,886,888 140,152
599,919 535,430 64,489
69,762 69,762
54,416 54,242 174 531,717 394,494 137,223
368,580 365,122 3,458 7,327,291 6,804,873 522,418
606,687 632,647 25,960 (232,472) 1,018,365 1,250,837
25,000 19,381 (5,619) 450,515 394,548 (55,967)
,_ (646,939) (439,740) 207,199 (874,728) (634,676) 240,052
(621,939) (420,359) 201,580 (424,213) (240,128) 184,085
(15,252) 212,288 227,540 (656,685) 778,237 1,434,922
1,403,785 1,403,785 7,478,635 7,478,635
._ $1,388,533 $1,616,073 $227,540 $6,821,950 $8,256,872 $1,434,922
37
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, 1986
Proprietary Fund Types
Totals
Internal (Memorandum Only) .�
Enterprise Service 1986 1985
Sales and cost of sales: .,
Sales $2,547,533 $ $2,547,533 $2,303,732
Cost of sales 2,061,720 2,061,720 1,979,197
Gross profit 485,813 -0- 485,813 324,535
Operating revenues:
Water sales and sewer rents 2,277,244 2,277,244 2,078,176
Other 156,856 156,856 218,239
Charges for services 322,665 322,665 349,174
Total operating revenues 2,434,100 322,665 2,756,765 2,645,589
Operating expenses:
Personal services 741,035 741,035 692,295
Supplies and other charges 1,860,311 269,916 2,130,227 1,878,709
Depreciation 327,852 37,720 365,572 360,476
Total operating expenses 2,929,198 307,636 3,236,834 2,931,480
Operating income (loss) (9,285) 15,029 5,744 38,644
Non-operating revenues (expenses) :
Interest on investments 493,004 115,560 608,564 563,103
Debt service (1,593) (5,250) (6,843) (12,152)
Other 2,204
Total non-operating revenues 491,411 110,310 601,721 553,155
Income before operating transfers 482,126 125,339 607,465 591,799
Operating transfers in 15,624 15,624 36,154
Operating transfers out (50,000) (3,007) (53,007) (11,265)
Total operating transfers (34,376) (3,007) (37,383) 24,889
Net income 447,750 122,332 570,082 616,688
Retained earnings January 1 7,496,159 429,600 7,925,759 7,309,071
Retained earnings December 31 $7,943,909 $551,932 $8,495,841 $7,925,759
See Accompanying Notes to Financial Statements
38
Exhibit A-5
CITY OF FRIDLEY, MINNESOTA
COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION -
ALL PROPRIETARY FUND TYPES
Year Ended December 31, 1986
Proprietary Fund Types Totals
Internal (Memorandum Only)
Enterprise Service 1986 1985
Sources of working capital:
Operations:
Net income for the year $447,750 $122,332 $570,082 $ 616,688
Items not requiring working capital
Depreciation 327,852 37,720 365,572 360,476
Loss on disposal of equipment 223 223
Working capital provided by operations 775,825 160,052 935,877 977,164
Proceeds from sale of equipment 8,000 8,000
._ Decrease in long term receivable 22,444 22,444 17,788
Decrease in restricted assets 32,101 32,101
Total sources of working capital 838,370 160,052 998,422 994,952
Uses of working capital:
Increase in restricted assets 20,444
Acquisition of property and equipment 190,942 25,857 216,799 91,038
Decrease in long term bonds payable 50,000 50,000 50,000
Decrease in long term advance from
Capital Improvement Fund 25,000 25,000 25,000
Total uses of working capital 240,942 50,857 291,799 186,482
Increase in working capital $597,428 $109,195 $706,623 $ 808,470
Elements of increase (decrease)
in working capital:
Cash $(14,895) $(19,508) $(34,403) $(109,435)
Investments 362,042 80,285 442,327 767,621
Receivables:
Accounts 62,328 62,328 142,491
Interest 22,819 5,507 28,326
Due from other governments (33,592) (33,592) (63,095)
.- Inventories 112,155 112,155 11,475
Prepaid expenses 132,479 132,479 (124,810)
Advance from city's general account (17,734) (17,734)
Accounts payable (51,153) 15,068 (36,085) 176,493
Contracts payable 10,744
Salaries payable (3,652) (3,652) (6,251)
Leave payable 36,718 36,718 19,836
Due to other funds (1,771) (1,771)
Due to other governments 10,668 8,859 19,527 (16,599)
Increase in working capital $597,428 $109,195 $706,623 $ 808,470
See Accompanying Notes to Financial Statements
39
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1986
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.
Based on the foregoing criteria the financial statements of the following
organization have been incorporated in the accompanying financial statement:
Fridley Housing and Redevelopment Authority - The City Council appoints the
chairperson and the Commission members of the Housing and Redevelopment
Authority. A majority of the funding is provided by the issuance of general
obligation tax increment bonds issued by the City. The operations of the
Fridley Housing and Redevelopment Authority are reported in a separate
Capital Projects Fund.
The following entities are not part of the City of Fridley and are excluded
from the accompanying financial statements:
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.
Police and Fire 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. All funding is conducted
40
CITY OF FRIDLEY, MINNESOTA
_ NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1986
1. Summary of Significant Accounting Policies (Continued)
A. Principles used in the determination of the scope of the Governmental entity
(Continued)
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.
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 nine generic fund types and three broad
categories as follows:
GOVERNMENTAL FUNDS
Governmental funds include the general fund, special revenue funds , debt
service funds, capital projects funds and special assessment 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 or special assessment funds.
Special Assessment Funds - Special Assessment Funds are used to account for
the financing of public improvements or services deemed to benefit the
properties against which special assessments are levied.
41
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1986
1. Summary of Significant Accounting Policies (Continued)
B. Fund Accounting (Continued)
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.
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.
FIDUCIARY FUNDS
Fiduciary funds include expendable trust and agency funds. The measurement
focus of these funds is the same as governmental funds and are 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 an overlapping governmental
unit. 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 their 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.
42
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1986
-� 1. Summary of Significant Accounting Policies (Continued)
C. Measurement Focus (Continued)
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 single exception to the general rule is for special
assessment bonds, which are accounted for in Special Assessment 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.
Because of their spending measurement focus , expenditure recognition for
governmental fund types excludes amounts represented by noncurrent
liabilities, except special assessment bonds. 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.
43
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ,_
DECEMBER 31, 1986
^
1. Summary of Significant Accounting Policies (Continued)
D. Basis of Accounting (Continued)
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.
E. Budgets and Budgetary Accounting
The City follows these procedures in establishing the budgetary data
reflected in the financial statements:
1. The City Manager submits to the City Council a proposed operating budget
for the fiscal year commencing the following January 1 . The operating
budget includes expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution.
4. The City Council may authorize transfer of budgeted amounts between
departments within any fund.
5. Supplemental appropriations may be made during the year by the City
Council. These amounts must be financed by funds from the contingency
reserve set up in the General Fund or by additional revenues. ^
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 and Special
Assessment 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.
44
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1986
1. Summary of Significant Accounting Policies (Continued)
E. Budgets and Budgetary Accounting (Continued)
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.
2) Cash in Escrow
The December 31, 1985 balance of cash in escrow represents the net
proceeds after issuance costs , from the sale of two bond issues ; 1)
11,550,000 Variable Rate Demand General Obligation Tax Increment Bonds ,
Series 1985 and 2) 3,100,000 Variable Rate Demand General Obligation
Improvement Bonds, Series 1985 . The proceeds were held in escrow by
Manufacturers Hanover Corporation under an investment agreement until a
permanent bond rating of a Aal was issued by Moody's in mid 1986.
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.
45
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) _,
DECEMBER 31, 1986
1. Summary of Significant Accounting Policies (Continued)
F. Assets, Liabilities and Fund Equity (Continued)
3) Receivables (Continued)
Property Taxes (Continued)
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, on or before February 21, April 21, July 7 and
December 2.
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 law which allows an _.
increase in the tax levy each year equal to the Implicit Price Deflator
increase or 5%, whichever is greater, further indexed by the percentage
increase in households or population, whichever is greater. 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 substantially —
complete. The assessments are collectible over a term of years
generally consistent with the term of years of the related bond issue.
46
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1986
1. Summary of Significant Accounting Policies (Continued)
F. Assets, Liabilities and Fund Equity (Continued)
3) Receivables (Continued)
Special Assessments Receivable (Continued)
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 the lower of F.I.F.O. cost or market 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 purchased. 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.
47
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1986
1. Summary of Significant Accounting Policies (Continued)
F. Assets, Liabilities and Fund Equity (Continued)
5) Property and Equipment/General Fixed Assets (Continued)
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 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:
Land Improvements 20 - 50 years
Buildings 20 - 50 years
Office Equipment 5 - 10 years
Machinery and Equipment 5 - 10 years
Other Improvements 20 years
6) 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 Fund and represents the maximum possible dilution
of fund assets by retirements or extended approved leaves by employees.
7) 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.
48
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1986
1. Summary of Significant Accounting Policies (Continued)
G. Revenues, Expenditures and Expenses (Continued)
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.
Intergovernmental Revenues - Intergovernmental revenues in the form of state
aids are recorded as revenue when allocations are made by statutory formula.
Entitlements for General Revenue Sharing are recorded as revenue for the
period of the allocation. 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.
49
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1986
1. Summary of Significant Accounting Policies (Continued)
I. Total Columns on Combined Statements
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 1985 amounts have been
reclassified to conform to the 1986 presentation.
2. Cash and Investments —
Cash and investments at year end consists of the following:
Bank deposits with maturities under 1 year $ 100,000
U.S. Government securities 8,422,742
U.S. Government agencies or instrumentalities 8,476,294
Commercial paper 12,143,509
Certificates of deposit 2,312,263
Repurchase agreements 8,652,975
40,107,783 --
Demand deposits 51,335
Petty cash and change funds 3,600
$40,162,718 —
In accordance with applicable Minnesota statutes, the City maintains deposits at
depository banks authorized by the City Council.
Minnesota statutes require that all deposits be protected by insurance , surety
bond or collateral. If collateral is pledged as protection for the deposits , —
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.
State statutes authorize the City to invest in all the types of instruments
shown above and due care is taken to insure the safety of principal.
50
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1986
2. Cash and Investments (Continued)
The carrying value, market value and credit risk of the investments held by the
City at year end are as follows:
Carrying
... Value
Credit Risk Category 1 $ 7,467,198
Credit Risk Category 2 -0-
Credit Risk Category 3 32,695,520
Market Value $40,162,718
The City's investments are categorized above 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 brokers 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 broker or dealer, or by its trust department or agent
-- but not in the City's name.
The Category 3 securities consist of the various investment types shown above
,^ which are held by Merrill Lynch in street name.
The carrying value and market value of the investments are considered equal.
3. Special Assessments Receivable
Special assessments receivable at December 31, 1986 are as follows:
Special
General Assessments Total
Deferred $3,530 $3,815,958 $3,819,488
Delinquent 5,421 171,458 176,879
Total $8,951 $3,987,416 $3,996,367
51
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) —
DECEMBER 31, 1986
4. Due From Other Governments --
Amounts due from other governments at December 31, 1986 are as follows:
General Fund:
Department of Employee Relations - .�
Social Security Retirement Division $ 1,148
State of Minnesota
a) State Aid - Maintenance 13,245
b) Civil Defense 1,977
Anoka County
a) Fines and Forfeits 27,928
b) Gas Reimbursement 36 -^
City of Hilltop, Fire Protection Service 200
General Adjustments Bureau - LMCIT
a) Collision Damage 433
b) Fire Damage 8,277
$ 53,244
Special Revenue Funds:
Federal Government, Revenue Sharing $ 3,349
State of Minnesota
a) MSA - Construction, Money Expended in 1984 5,460
b) Section 8 Housing 11,817
c) Civil Defense 11,381 --
d) Department of Energy and Economic Development 2,999
Anoka County
a) Community Development Block Grant 55,463 _
b) Recycling 8,686
Metro Council, Recycling Program 5,351
$104,506
Special Assessment Funds:
State of Minnesota, Water Reclamation $ 16,591
Enterprise Funds:
Utility Funds:
Metropolitan Waste Control Commission (MWCC)
Refund of overpayment $ 45,421 —
Current portion of amounts due from MWCC 15,787
Total current portion 61,208
Non-current portion - long-term receivable of
amounts due from MWCC 294,430
52
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1986
4. Due From Other Governments (Continued)
The non-current receivable in the Utility Enterprise Fund represents:
1. The balance for the sale of the City's sewer interceptors is $269 , 255 (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 $25,175, 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, 1986 Additions Deletions Dec 31, 1986
Land $ 1,678,372 $ 39,019 $ 313 $ 1,717,078
Buildings 1,773,058 1,773,058
Improvements other than
buildings 16,286,590 1,305,267 17,591,857
Machinery and equipment 2,279,651 273,437 121,523 2,431,565
Construction in progress 2,309,766 705,649 2,078,427 936,988
Total $24,327,437 $2,323,372 $2,200,263 $24,450,546
Construction in progress is composed of the following:
Contracted Expended to Unexpended
Amount Dec. 31, 1986 Balance
Moore Lake Improvement $1,006,194 $934,128 $ 72,067
1987 Street Projects 195,203 458 194,745
.... Water & Sewer #169 * 510 N/A
Springbrook #163 * 1,892 N/A
$1,201,397 $936,988 $266,812
*These projects are still in the initial design phase and as such contracts
have not been let.
53
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1986
6. Summary of Proprietary Fund Property and Equipment
A summary of proprietary fund type property, plant and equipment at December 31,
1986 follows:
Internal
Enterprise Service
Management
Information
Liquor Utility Total Services
Land $ 66,961 $ 154,881 $ 221,842 $
Buildings 174,116 824,078 998,194
Improvements other than —.
buildings 14,791 324,016 338,807
Machinery and equipment 208,670 2,171,280 2,379,950 204,659
Water and sewer lines 10,861,185 10,861,185
464,538 14,335,440 14,799,978 204,659
Less:
Accumulated depreciation (161,247) (2,507,916) (2,669,163) (100,899)
Net property and
equipment $303,291 $11,827,524 $12,130,815 $103,760
7. Long-Term Debt
The following is a summary of long-term debt transactions of the City for the
year ended December 31, 1986:
Special General
Assessment Enterprise Long-Term
Funds Funds Debt Total
Bonds payable
at January 1, 1986 $6,350,000 $120,000 $15,655,000 $22,125,000
Bonds issued 2,705,000 10,045,000 12,750,000
Bonds retired (3,675,000) (50,000) (11,765,000) (15,490,000) -,
Bonds payable
at December 31, 1986 $5,380,000 $ 70,000 $13,935,000 $19,385,000
64
CITY OF FRIDLEY, MINNESOTA
,., NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1986
7. Long-Term Debt (Continued)
Bonds payable at December 31, 1986 are comprised of the following individual
issues (in thousands of dollars) :
Special Assessment Funds:
$1 , 830 ,000 Improvement Bonds of 1967 due in varying annual
installments of $20,000 - $30,000 through Janaury 1, 1988 ;
interest at 4.20% - 4.50% 20
$1 , 220 ,000 Refunding Bonds of 1975 due in varying annual
installments of $10, 000 - $45 ,000 through January 1, 1989 ;
interest at 6.00% 55
$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 3.80% - 5.30% 375.
$1 , 550 ,000 Special Assessment Bonds of 1976 due in varying
annual installments of $25 ,000 through February 1 , 1990 ;
interest at 3.75% - 6.00% 100
$1 , 115 ,000 Special Assessment Bonds of 1977 due in varying
.., annual installments of $50,000 - $115 ,000 through February 1 ,
1989; interest at 3.10% - 4.90% 215
$1 , 755 , 000 Special Assessment Bonds of 1980 due in varying
annual installments of $25,000 - $155 ,000 through February 1,
2001; interest at 7.25% - 8.50% 1,000
$1 ,425 ,000 Special Assessment Bonds of 1982 due in varying
annual installments of $15,000 - $175 ,000 through February 1,
1999; interest at 8.50% - 10.70% 910
$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% 2,705
$5,380
Enterprise Fund:
$780,000 General Obligation (G.O. ) Water Revenue Bonds of 1965
due in annual installments of $50,000 through February 1, 1987
and $20, 000 on the final maturity date , February 1 , 1988 ;
interest at 3.20% - 3.50% $ 70
55
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1986
7. Long-Term Debt (Continued)
General Long-Term Debt:
$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 5.50% - 9.00% 3,890
$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% 10,045
$13,935
The annual requirements to amortize all debt outstanding as of December 31,
1986, including interest payments of $12,905,183, are as follows:
Annual Requirements to Amortize Long-Term Debt
December 31, 1986
Special
Year Ending Assessment Enterprise Redevelopment
December 31 Fund Fund Fund Total
1987 1,072,680 542,965 1,350,925 2,966,570
1988 879,605 514,634 1,482,360 2,876,599 -'
1989 858,713 490,621 1,392,078 2,741,412
1990 772,754 490,315 1,441,679 2,704,748
1991 665,200 488,384 959,928 2,113,512
1992 - 1996 2,252,584 2,429,269 5,925,509 10,607,362
1997 - 2001 1,124,155 1,440,180 5,715,645 8,279,980
$7,625,691 $6,396,368 $18,268,124 $32,290,183
The preceding debt service requirements include interest expense on the Variable
Rate Improvement and Tax Increment Bonds of 1985 at an assumed rate of 6 . 5% .
This is a conservative assumption.
In 1986, General Obligation Refunding Improvement and Tax Increment Refunding -,
Bonds were issued to refund the principal of the 1985 Variable Rate Improvement
and Tax Increment Bonds. Due to the nature of the refunding issues , the City
remains liable for the interest expense on the Variable Rate issue through
February 1, 2000, while the escrow agent is liable for the interest expense on
the refunding issue. The average 1986 rate was 4.713% or $124,834 and $339,203,
respectively. The estimated 1987 expense calculated at the fourth quarter 1986
rate is $114,463 and $464,691, respectively.
$538,554 is available in the Debt Service Fund to service the General Obligation
Bonds.
The Tax Increment Revenue Bonds are payable solely from increment revenue that
is generated from the related increment 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. ^-
56
CITY OF FRIDLEY, MINNESOTA
... NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1986
7. Long-Term Debt (Continued)
Legal Debt Margin - Under applicable State Statutes , the legal debt margin is
7.33% of the most recent assessed valuation less certain deductions . At
December 31, 1986, the legal debt margin was $16,534,575.
8. Retirement Plans
The City is involved with four pension plans, and other agencies are responsible
for the administration of each plan. The City is making all pension
contributions as required by law.
Fridley Police Relief Association and Fridley Fire Relief Association - These
Associations are independent entities that administer pension plans for 16 and
31 members respectively. The City levies taxes for pension contributions to the
Associations in accordance with State Statutes. The pension levies satisfy the
.— Police Relief Association Guidelines Act, which requires that contributions
cover normal cost, interest at five (5%) percent on the unfunded liability, and
an amount for amortization of any unfunded pension liability by the year 2010 .
_ The pension levy for the year ended December 31, 1986 for the Police Association
was $168,696. There is no levy requirement for the Fire Association at this
time.
State law requires an actuarial study every two years . Based on the latest
actuarial study for the Police Relief Association as of December 31, 1985 , the
actuarial liability exceeded pension fund assets by approximately $1, 689 ,444.
The latest study for the Firemen' s Relief Association as of January 1 , 1986
stated that there was an unfunded accrued liability of $140,956, as a result of
expanded benefits . It is believed, however, that as of December 31, 1986 ,
earnings on pension fund assets have extinguished this liability.
Public Employee Retirement Association - All permanent City employees are
covered by the Public Employee Retirement Association (PERA) which is a
state-wide plan and is administered by an independent agency of the State of
Minnesota. The City's contribution ranges from 4.25% to 12.0% of its employees'
wages, and the rate is determined by the particular plan the employee belongs
to. The cost of PERA for 1986 was $235,690. State law provides that the City
contribute an amount that will fund the current year costs as they accrue and to
fund the amortization of prior service costs with full funding required by the
year 2010. According to the PERA annual report, the unfunded accrued liability
'^ was $890,059,000 as of June 30, 1986. The amount of unfunded prior service cost
for each governmental unit served by PERA is not available.
Federal Insurance Contribution Act (Social Security) - Approximately sixty (60%)
percent of the permanent City employees are covered by Social Security. The
1986 contribution rate was 7 . 15% on $42 ,000 in wages . The cost of Social
Security for 1986 was $132 , 229 . 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 1986 cost for Medicare was $3,470.
57
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED) -ft
DECEMBER 31, 1986
^
9. Interfund Receivables and Payables
Interfund receivables and payables at December 31, 1986 are as follows:
Interfund Interfund
Receivables Payables
Due From/Due To:
Special Revenue Funds -
Grant Management Fund $ $ 10,000
HRA Reimbursement Fund 13,687
Capital Projects Funds -
Capital Improvement Fund 25,000
HRA Fund 11,771 101,555
Special Assessment Funds 87,868
Enterprise Fund -
Liquor Fund 1,771
Internal Service Fund -
Management Information Services Fund 25,000
$138,326 $138,326 --
Advance From/Advance To:
Capital Projects Fund - --
Capital Improvement Fund $ 25,000
Internal Service Fund - --
Management Information Services Fund $ 25,000
F.
58
CITY OF FRIDLEY, MINNESOTA
— NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1986
10. Reserved Fund Balances/Retained Earnings
_ The following reservations have been made of various fund balances/retained
earnings at December 31, 1986:
Fund Balance
General Fund
Reserved for:
Encumbrances $ 195,858
_ Park construction 224,952
Inventory 17,752
Prepaid expenditures 35,465
— 474,027
Debt Service Funds
Reserved for Debt Service 538,554
Capital Projects Funds
Reserved for:
Advance to other funds 25,000
Construction 6,375,407
Debt service 4,045,603
-' 10,446,010
Special Assessment Fund
— Reserved for:
Encumbrances 526,468
Debt Service 1,523,033
— 2,049,501
Total reservations $13,508,092
Retained Earnings
Enterprise Funds
Reserved for debt service $ 6,392
Internal Service Funds
Employee Benefits Fund
Reserved for employee benefits 436,664
Management Information Services Fund
Reserved for capital outlay 115,268
Total reservations $ 558,324
No reservations have been made in the Enterprise Funds for restricted assets, as
there is not an excess of restricted assets over the related liabilities.
59
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1986
11. Designated Fund Balance
The following designations have been made of various fund balances at December
31, 1986:
General Fund
Working Capital $3,000,000
Subsequent Year's Expenditures 291,931
Replacement of Fixed Assets 1,150,000
4,441,931
Capital Projects
Capital Improvement Fund
Replacement of Fixed Assets 1,709,033
Park Improvement 63,199
Sears Fund
Park Improvement 50,000
1,822,232
Total $6,264,163
60
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1986
'— 12. Segment Information for Enterprise Funds
The City maintains operating funds for Liquor and Utility (Water and Sewer
Operations) . Segment information for the year ended December 31 , 1986 is as
follows:
Total
Enterprise
Liquor Utility Funds
Sales (less cost of
sales of $2,061,720) $ 485,813 $ -0- $ 485,813
Operating revenues -0- 2,434,100 2,434,100
Operating expenses (407,150) (2,522,048) (2,929,198)
Operating income (loss) 78,663 (87,948) (9,285)
Non-operating revenues
(expenses) - net 26,396 465,015 491,411
Income before operating
transfers 105,059 377,067 482,126
Operating transfers from other
funds -0- 15,624 15,624
Operating transfers to other funds (50,000) -0- (50,000)
Net income $ 55,059 $ 392,691 $ 447,750
... Depreciation expense included
in operating expenses 27,351 300,501 327,852
Property and equipment
Additions 1,135 189,807 190,942
Deletions (9,151) (18,222) (27,373)
Working capital 584,767 5,738,690 6,323,457
Bonds and other long-term
liabilities payable from
operating revenues -0- 20,000 20,000
Total assets 1,036,957 18,048,247 19,085,204
Fund equity -
Contributed 10,861,185 10,861,185
Retained earnings $ 888,058 $ 7,055,851 $ 7,943,909
61
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1986
13. 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 of $1 ,425 , 898 at December 31 , 1986 are shown in the financial
statements as "Deposits" in the agency funds with a corresponding credit to
"Deposits Payable. "
14. 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.
15. Leases
The City leases the property at 214 Mississippi from the Fridley Housing and
Redevelopment Authority for a warehouse liquor store. The lease is for 3 years
terminating in December of 1987. Rental expense is $21,250 annually.
62
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.
r-�
Exhibit B-1
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND
_ COMPARATIVE BALANCE SHEET
December 31, 1986 and 1985
1986 1985
Assets
Cash $ 366,557 $1,022,196
Investments 5,473,886 4,748,876
_ Receivables:
Accounts 27,140 10,699
Taxes -
Unremitted 323,121 51,461
Delinquent 174,680 139,006
Special Assessments -
Deferred 3,530 5,954
.-. Delinquent 5,421 6,287
Interest 583,162 395,150
Due from other governments 53,244 32,882
_.. Inventories 17,752 19,143
Prepaid expenditures 35,465 2,621
Total assets $7,063,958 $6,434,275
Liabilities and Fund Balance
Liabilities:
Accounts payable $ 97,367 $ 76,699
... Deposits payable 25,189 26,551
Salaries payable 113,471 97,085
Deferred revenue 183,631 151,247
_ Due to other governments 3,501 7,843
Total liabilities 423,159 359,425
Fund balance:
Reserve for encumbrances 195,858 175,645
Reserve for park construction 224,952 107,880
Reserve for inventory 17,752 19,143
-• Reserve for prepaid expenditures 35,465
Unreserved -
Designated for working capital 3,000,000 3,000,000
Designated for subsequent year's expenditures 291,931 473,872
Designated for replacement of fixed assets 1,150,000 1,000,000
Undesignated 1,724,841 1,298,310
Total fund balance 6,640,799 6,074,850
Total liabilities and fund balance $7,063,958 $6,434,275
63
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, 1986
With Comparative Actual Amounts for Year Ended December 31, 1985
1986
Variance-
Favorable 1985
Budget Actual (Unfavorable) Actual
Revenues:
Taxes and special assessments $2,547,612 $2,598,108 $ 50,496 $2,550,940
Licenses and permits 260,426 304,028 43,602 367,224
Intergovernmental revenue 2,670,978 2,784,222 113,244 2,621,067
Charges for services 121,828 157,829 36,001 153,483
Fines and forfeits 160,462 287,710 127,248 354,956
Interest on investments 290,000 459,024 169,024 444,013 _
Miscellaneous 68,246 234,548 166,302 136,082
Total revenues 6,119,552 6,825,469 705,917 6,627,765
Expenditures:
Current
General government 980,416 919,495 60,921 949,105
Public safety 2,601,406 2,576,847 24,559 2,270,691 --
Civic center 202,867 180,839 22,028 162,220
Public works 2,027,040 1,886,888 140,152 1,729,521
Recreation and naturalist 599,919 535,430 64,489 535,801
Reserve for contingencies 69,762 69,762
Capital outlay 477,301 340,252 137,049 293,870
Total expenditures 6,958,711 6,439,751 518,960 5,941,208
Excess (deficiency) of revenues
over expenditures (839,159) 385,718 1,224,877 686,557
Other financing sources (uses) :
Operating transfers in 425,515 375,167 (50,348) 375,515
Operating transfers out (227,789) (194,936) 32,853 (383,869) _,
Total other financing sources
(uses) 197,726 180,231 (17,495) (8,354)
Excess (deficiency) of revenues
and other financing sources
over expenditures and other
financing uses (641,433) 565,949 1,207,382 678,203 -
Fund balance January 1 6,074,850 6,074,850 5,396,647
Fund balance December 31 $5,433,417 $6,640,799 $1,207,382 $6,074,850
64
Exhibit B-3
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL
-' Year Ended December 31, 1986
With Comparative Actual Amounts for Year Ended December 31, 1985
1986
Variance-
- Favorable 1985
Budget Actual (Unfavorable) Actual
Taxes and special assessments:
Current ad valorem taxes $2,493,720 $2,491,778 $ (1,942)
$2,427,146
Delinquent ad valorem taxes 33,492 39,376 5,884 72,582
Penalties and interest 14,500 58,648 44,148 41,615
- Forfeited sale-taxes 1,000 3,524 2,524 3,232
Special assessments 4,900 4,782 (118) 6,365
Total taxes 2,547,612 2,598,108 50,496 2,550,940
Licenses and permits
Licenses -
Contractor 14,487 14,287 (200) 14,656
Business 84,027 81,475 (2,552) 91,269
All other 46,360 45,468 (892) 49,867
Permits 115,552 162,798 47,246 211,432
"' Total licenses and permits 260,426 304,028 43,602 367,224
Intergovernmental revenue:
- Civil defense 10,000 6,816 (3,184) 14,101
Other federal grants 20,827 (20,827)
State maintenance aid 60,000 132,454 72,454 31,335
State credits 571,508 588,366 16,858 566,836
Local government aid 1,858,643 1,858,643 1,800,000
Other state grants 14,000 16,611 2,611 60,242
Police and fire pension 136,000 181,332 45,332 148,553
- Total intergovernmental revenue 2,670,978 2,784,222 113,244 2,621,067
Charges for services:
- General government 10,535 20,407 9,872 17,803
Public safety 18,850 19,625 775 20,979
Conservation of health 3,700 2,980 (720) 4,758
-. Recreation 88,743 114,817 26,074 109,943
Total charges for services 121,828 157,829 36,001 153,483
Fine and forfeits 160,462 287,710 127,248 354,956
Interest on investments 290,000 459,024 169,024 444,013
- (Continued)
65
Exhibit B-3
Continued
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND -
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL
Year Ended December 31, 1986
With Comparative Actual Amounts for Year Ended December 31, 1985 -'
1986 -
Variance-
Favorable 1985
Budget Actual (Unfavorable) Actual -
Miscellaneous revenue:
Rent income $ $ $ $ 11,925
Sale of property 28,000 95,061 67,061 63,172 -
Donations 18,300 92,599 74,299 48,865
Miscellaneous refunds 21,946 46,888 24,942 12,120
Total miscellaneous revenue 68,246 234,548 166,302 136,082 -
Total revenues 6,119,552 6,825,469 705,917 6,627,765
Other financing sources:
Operating transfers in -
Municipal State Aid Fund 142,863 142,863 142,863 --Revenue Sharing Fund 232,652 179,297 (53,355) 232,652
Employee Benefit Fund 3,007 3,007
Liquor Fund 50,000 50,000
Total other financing sources 425,515 375,167 (50,348) 375,515 --
Total revenues and other
financing sources $6,545,067 $7,200,636 $655,569 $7,003,280 -
66
Exhibit B-4
CITY OF FRIDLEY, MINNESOTA
-- GENERAL FUND
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL
Year Ended December 31, 1986
- With Comparative Actual Amounts for Year Ended December 31, 1985
1986
Variance-
Favorable 1985
Budget Actual (Unfavorable) Actual
-. General government:
Mayor and council -
Personal services $ 69,897 $ 69,792 $ 105 $ 58,966
Supplies and other charges 39,548 29,558 9,990 26,048
109,445 99,350 10,095 85,014
Planning commission -
-' Personal services 23,043 17,904 5,139 26,738
Supplies and other charges 6,573 5,154 1,419 7,629
29,616 23,058 6,558 34,367
Other commissions -
Personal services 9,288 1,811 7,477 3,770
Supplies and other charges 15,035 3,694 11,341 11,669
24,323 5,505 18,818 15,439
City Manager -
Personal services 150,772 150,736 36 139,269
Supplies and other charges 61,027 60,650 377 55,272
211,799 211,386 413 194,541
Personnel -
Personal services 50,092 49,490 602 36,164
Supplies and other charges 13,644 13,357 287 21,423
63,736 62,847 889 57,587
Legal -
- Personal services 5,820 857 4,963 4,522
Supplies and other charges 121,780 121,438 342 120,034
127,600 122,295 5,305 124,556
Elections -
Personal services 8,197 7, 863 334 9,271
Supplies and other charges 19,848 19,806 42 2,510
-' 28,045 27,669 376 11,781
Accounting -
Personal services 149,743 147,840 1,903 222,065
Supplies and other charges 85,058 78,582 6,476 65,845
234,801 226,422 8,379 287,910
Assessing -
Personal services 124,479 114,410 10,069 107,229
Supplies and other charges 26,572 26,553 19 30,681
151,051 140,963 10,088 137,910
Total general government 980,416 919,495 60,921 949,105
(Continued)
67
Exhibit B-4
CITY OF FRIDLEY, MINNESOTA
Continued GENERAL FUND --
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL
Year Ended December 31, 1986
With Comparative Actual Amounts for Year Ended December 31, 1985 --
1986
--Variance-
Favorable 1985
Budget Actual (Unfavorable) Actual
Public safety:
Police -
Personal services $1,818,195 $1,817,843 $ 352 $1,598,862
Supplies and other charges 220,877 220,871 6 203,381
2,039,072 2,038,714 358 1,802,243
Fire -
Personal services 407,976 407,770 206 353,695
Supplies and other charges 89,927 85,627 4,300 73,934
497,903 493,397 4,506 427,629 -
Civil defense -
Personal services 55,162 41,052 14,110 38,601
Supplies and other charges 9,269 3,684 5,585 2,218
64,431 44,736 19,695 40,819
Total public safety 2,601,406 2,576,847 24,559 2,270,691 -
Civic center:
Personal services 73,701 70,712 2,989 63,274 ,_
Supplies and other charges 129,166 110,127 19,039 98,946
202,867 180,839 22,028 162,220
Public works: -
Code enforcement -
Personal services 180,690 129,670 51,020 123,342
Supplies and other charges 45,100 38,274 6,826 35,823 .-.
225,790 167,944 57,846 159,165
Planning -
Personal services 102,085 102,041 44 90,673
Supplies and other charges 28,088 23,787 4,301 13,590
130,173 125,828 4,345 104,263
Engineering -
Personal services 118,524 118,459 65 109,066
Supplies and other charges 36,557 36,124 433 31,147 _
155,081 154,583 498 140,213
Public works -
Personal services 833,896 833,705 191 780,379
Supplies and other charges 682,100 604,828 77,272 545,501
1,515,996 1,438,533 77,463 1,325,880
Total public works 2,027,040 1,886,888 140,152 1,729,521
(Continued)
08
Exhibit B-4
Continued
CITY OF FRIDLEY, MINNESOTA
GENERAL FUND
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL
Year Ended December 31, 1986
With Comparative Actual Amounts for Year Ended December 31, 1985
1986
Variance-
Favorable 1985
Budget Actual (Unfavorable) Actual
Recreation and naturalist:
Naturalist -
Personal services $ 85,122 $ 77,909 $ 7,213 $ 62,991
- Supplies and other charges 56,596 46,445 10,151 52,609
141,718 124,354 17,364 115,600
_, Recreation -
Personal services 332,321 291,883 40,438 280,992
Supplies and other charges 125,880 119,193 6,687 139,209
458,201 411,076 47,125 420,201
Total recreation and naturalist 599,919 535,430 64,489 535,801
- Reserve for contingencies 69,762 -0- 69,762 -0-
Capital outlay expenditures -
City manager 1,785 1,785
" Elections 23,055
Accounting 2,231 1,402 829 916
Police 137,587 122,895 14,692 89,127
... Fire 20,800 4, 376 16,424 61,846
Civic center 5,985 5 ,933 52 5,573
Code enforcement 700 700
.. Planning 450 446 4
Engineering 1,316
Public works 298,910 200,625 98,285 111,239
Recreation 5,342 878 4,464 798
- Naturalist 3,511 1,912 1,599
Total capital outlay 477,301 340,252 137,049 293,870
Total expenditures 6,958,711 6,439,751 518,960 5,941,208
Other financing uses:
Operating transfers out -
Special Revenue Fund 8,000 8,000
Capital Projects Funds 76,904 76,904 282,195
Special Assessment Fund 142,885 110,032 32,853 90,423
- Internal Service Funds 11,251
Total other financing uses 227,789 194,936 32,853 383,869
Total expenditures and
other financing uses $7,186,500 $6,634,687 $551,813 $6,325,077
69
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 Fund for current year road
construction activity.
Revenue Sharing Fund
This fund was established to receive and account for the City's allocation
of Federal Revenue Sharing money. Fridley has been using revenue sharing
money for the reduction of general property taxes , however, in 1986 the
funds granted to the city were reduced and not reauthorized for future
years. The program was terminated September 16 , 1986 due to the federal
budget reductions required by the Gramm-Rudman-Hollings Act.
Cable TV Fund
This fund receives revenues from issuance of an annual license to 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, 1986 -'
With Comparative Totals for December 31, 1985
Municipal
State Revenue Cable Grant
Aid Sharing TV Management
Assets
Cash $ 8, 316 $ $ $
Investments 1,489,283 98,956
Receivables:
Accounts 17,690
Interest 7,668 432 --
Due from other funds
Due from other governments 5,460 3, 349 95,697
Total assets $1,510,727 $3,349 $117,078 $95,697
Liabilities and Fund Balance -
Liabilities:
Advance from city's general account $ $3,349 $ 3,755 $81,249
Accounts payable 2 1,800
Salaries payable 456 1,079
Due to other funds 10,000
Due to other governments 9,088 -
Total liabilities -0- 3,349 13,301 94,128
Fund balance: .-
Unreserved - undesignated 1,510,727 103,777 1,569
Total fund balance 1,510,727 -0- 103,777 1,569
Total liabilities and
fund balance $1,510,727 $3,349 $117,078 $95,697
72
Exhibit C-1
HRA Totals
Reimbursement 1986 1985
$ $ 8,316 $ 5,511
1,588,239 1,313,908
17,690 26,719
8,100
13,687 13,687 26,027
104,506 119,055
$13,687 $1,740,538 $1,491,220
$10,621 $ 98,974 $ 79,556
11 1,813 6,102
3,055 4,590 1,777
10,000
9,088
13,687 124,465 87,435
1,616,073 1,403,785
-0- 1,616,073 1,403,785
$13,687 $1,740,538 $1,491,220
73
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
Year Ended December 31, 1986
With Comparative Totals for Year Ended December 31, 1985
Municipal
State Revenue Cable Grant
Aid Sharing TV Management
Revenues:
Licenses and permits $ $ $ 54,934 $
Intergovernmental revenue 393,721 127,907 155,459
Interest on investments 130,263 9,726 10,265
Miscellaneous 14,005
Total revenues 523,984 137,633 79,204 155,459
Expenditures:
Current -
General government 172 57,578 151,641 -�
Capital outlay 23,479 30,763
Total expenditures -0- 172 81,057 182,404
Excess (deficiency) of revenues
over expenditures 523,984 137,461 (1,853) (26,945)
Other financing sources (uses) :
Operating transfers in 19, 381
Operating transfers out (260,443) (179,297)
Total other financing sources (uses) (260,443) (179,297) -0- 19,381 —'
Excess (deficiency) of revenues and
other financing sources over -^
expenditures and other financing
uses 263,541 (41,836) (1,853) (7,564)
Fund balance January 1 1,247,186 41,836 105,630 9,133
Fund balance December 31 $1,510,727 $ -0- $103,777 $ 1,569
74
Exhibit C-2
RBA Totals
Reimbursement 1986 1985
$ $ 54,934 $ 55,382
101,489 778,576 594,108
.. 150,254 143,946
14,005
$101,489 997,769 793,436
101,489 310,880 264,828
54,242 39,276
101,489 365,122 304,104
-0- 632,647 489,332
19,381
(439,740) (375,515)
-0- (420,359) (375,515)
-0- 212,288 113,817
-0- 1,403,785 1,289,968
$ -0- $1,616,073 $ 1,403,785
75
Exhibit C-3
CITY OF FRIDLEY, MINNESOTA
MUNICIPAL STATE AID SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEET
December 31, 1986 and 1985
1986 1985
Assets
Cash $ 8 ,316 $
Investments 1,489 ,283 1,233,507
Interest receivable 7 ,668 --
Due from other governments 5,460 13,679
Total assets $1,510,727 $1,247,186
Fund Balance
Fund balance:
Unreserved - undesignated $1,510,727 $1,247,186
Total fund balance $1,510,727 $1,247,186
76
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, 1986
With Comparative Actual Amounts for Year Ended December 31, 1985
._ 1986
Variance-
Favorable 1985
Budget Actual (Unfavorable) Actual
Revenues:
Intergovernmental - Minnesota
state aid $ 290,994 $ 393,721 $102,727 $ 97,152
Interest on investments 123,468 130,263 6,795 123,412
Total revenues 414,462 523,984 109,522 220,564
Other financing uses:
Operating transfers out -
General Fund (296,462) (142,863) 153,599 (142,863)
Special Assessment Fund (118,000) (117,580) 420
Total other financing uses (414,462) (260,443) 154,019 (142,863)
Excess of revenues over
other financing uses -0- 263,541 263,541 77,701
Fund balance January 1 1,247,186 1,247,186 1,169,485
Fund balance December 31 $1,247,186 $1,510,727 $263,541 $1,247,186
77
Exhibit C-5
CITY OF FRIDLEY, MINNESOTA
REVENUE SHARING SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEET '-
December 31, 1986 and 1985
1986 1985
Assets --
Due from other governments $3,349 $49,716
Liability and Fund Balance
Liability: ,^
Advance from city's general account $3,349 $ 7,880
Fund balance:
Unreserved - undesignated 41,836
Total liability and fund balance $3,349 $49,716
78
Exhibit C-6
CITY OF FRIDLEY, MINNESOTA
REVENUE SHARING SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 1986
With Comparative Actual Amounts for Year Ended December 31, 1985
1986
Variance-
Favorable 1985
Budget Actual (Unfavorable) Actual
Revenues:
Intergovernmental -
Revenue sharing $226,652 $127,907 $(98,745) $216,324
Interest on investments 6,000 9,726 3,726 12,988
Total revenues 232,652 137,633 (95,019) 229,312
Expenditures:
Current
General government -
Supplies and other charges 175 172 3 750
Excess of revenues over
expenditures 232,477 137,461 (95,016) 228,562
Other financing uses:
Operating transfers out -
General fund (232,477) (179,297) 53,180 (232,652)
Deficiency of revenues over
expenditures and other
.� financing uses -0- (41,836) (41,836) (4,090)
Fund balance January 1 41,836 41,836 45,926
Fund balance December 31 $ 41,836 $ -0- $(41,836) $ 41,836
79
Exhibit C-7
CITY OF FRIDLEY, MINNESOTA
CABLE TV SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEET --
December 31, 1986 and 1985
1986 1985
Assets
Cash $ $ 5 ,511
Investments 98 ,956 80,401
Receivables:
Accounts 17, 690 25,229
Interest 432
Total assets $117,078 $111,141
Liabilities and Fund Balance --
Liabilities:
Advance from city's general account $ 3,755 $
Accounts payable 2 5,269
Salaries payable 456 242
Due to other governments 9,088
Total liabilities 13,301 5,511
Fund balance:
Unreserved - undesignated 103,777 105,630 '^
Total liabilities and fund balance $117,078 $111,141
80
Exhibit C-8
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, 1986
With Comparative Actual Amounts for Year Ended December 31, 1985
1986
Variance-
Favorable 1985
-� Budget Actual (Unfavorable) Actual
Revenues:
Licenses - Cable TV $ 52,978 $ 54,934 $ 1,956 $ 55,382
Interest on investments 2,120 10,265 8,145 7,546
Donations 14,005 14,005
Total revenues 69,103 79,204 10,101 62,928
Expenditures:
Current
General government -
Personal services 25,792 22,678 3,114 14,032
Supplies and other charges 34,922 34,900 22 21,204
Capital outlay 23,641 23,479 162 443
Total expenditures 84,355 81,057 3,298 35,679
_ Excess of revenues over
expenditures (15,252) (1,853) 13,399 27,249
Fund balance January 1 105,630 105,630 78,381
Fund balance December 31 $ 90,378 $103,777 $13,399 $105,630
81
Exhibit C-9
CITY OF FRIDLEY, MINNESOTA
GRANT MANAGEMENT SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEET
December 31, 1986 and 1985
1986 1985 --
Assets
Accounts receivable $ $ 1,490
Due from other governments 95,697 55,660
Total assets $95,697 $57,150
Liabilities and Fund Balance
Liabilities:
Advance from city's general account $81,249 $46,155
Accounts payable 1,800 833
Salaries payable 1,079 1,029
Due to other funds 10,000 .,
Total liabilities 94,128 48,017
Fund balance:
Unreserved - undesignated 1,569 9,133
Total liabilities and fund balance $95,697 $57,150
82
Exhibit C-10
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, 1986
With Comparative Actual Amounts for Year Ended December 31, 1985
_ 1986
Variance-
Favorable 1985
Budget Actual (Unfavorable) Actual
Revenues:
Intergovernmental revenue -
Federal $ 78,000 $ 76,725 $(1,275) $176,526
State 50,500 50,504 4 60,388
Local 29,000 28,230 (770) 15,289
Total revenues 157,500 155,459 (2,041) 252,203
Expenditures:
Current
General government -
Personal services 50,100 50,038 62 68,798
Supplies and other charges 101,625 101,603 22 131,615
Capital outlay 30,775 30,763 12 38,833
Total expenditures 182,500 182,404 96 239,246
,-. Excess (deficiency) of revenues
over expenditures (25,000) (26,945) (1,945) 12,957
Other financing sources:
Operating transfers in -
General fund 8,000 8,000
Capital Improvement fund 17,000 11,381 (5,619)
Total other financing sources 25,000 19,381 (5,619) -0-
Excess (deficiency) of revenues
over expenditures and other
financing sources -0- (7,564) (7,564) 12,957
Fund balance January 1 9,133 9,133 (3,824)
Fund balance December 31 $ 9,133 $ 1,569 $(7,564) $ 9,133
83
Exhibit C-1 1
CITY OF FRIDLEY, MINNESOTA
HRA REIMBURSEMENT SPECIAL REVENUE FUND
COMPARATIVE BALANCE SHEET
December 31, 1986 and 1985
1986 1985 .-.
Assets
Due from other funds $13,687 $26,027
Total assets $13,687 $26,027
Liabilities and Fund Balance
Liabilities:
Advance from city's general account $10,621 $25,521
Accounts payable 11
Salaries payable 3,055 506
Total liabilities 13,687 26,027
Fund balance:
Unreserved - undesignated -0- -0-
Total liabilities and fund balance $13,687 $26,027
84
Exhibit C-12
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, 1986
With Comparative Actual Amounts for Year Ended December 31, 1985
1986
Variance-
Favorable 1985
Budget Actual (Unfavorable) Actual
Revenues:
Intergovernmental -
Housing Redevelopment Authority $101,550 $101,489 $(61) $28,429
Expenditures:
Current
General government -
,� Personal services 81,200 81,190 10. 23,276
Supplies and other charges 20,350 20,299 51 5,153
Total expenditures 101,550 101,489 61 28,429
Excess of revenues over
expenditures -0- -0- -0- -0-
" Fund balance January 1 -0- -0- -0-
Fund balance December 31 $ -0- $ -0- $-0- $ -0-
85
DEBT SERVICE FUNDS
Debt Service Funds are used to finance and account for the payment of
principal and interest on all general obligation debt other than that
payable exclusively from special assessments or debt issued for and
serviced by governmental enterprises. Provisions are made in the City's
general property tax levy so that sufficient resources are available to
meet the general obligation debt. Tax increment money is used to service
the debt on redevelopment related bonds.
City Fund
This fund services the debt on one bond issue from 1965 for the
construction of the City's Civic Center.
HRA Fund
This fund services the debt of the tax increment bonds.
Exhibit D-1
CITY OF FRIDLEY, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 1986
With Comparative Totals for December 31, 1985
Totals
City HRA 1986 1985
Assets
r Cash $ $ 2,154 $ 2,154 $ 953
Investments 90,720 537,613 628,333 587,003
Receivables:
Taxes -
Unremitted 3,662 3,662 514
Delinquent 2,589 2,589 2,134
Interest 335 335
Total assets $97,306 $539,767 $637,073 $590,604
Liabilities and Fund Balance
Liabilities:
Advance from city's general account $ 3,207 $ $ 3,207 $
Accounts payable 1,213 1,213
Deferred revenue 2,589 2,589 2,134
Total liabilities 5,796 1,213 7,009 2,134
Fund balance:
Reserved for debt service 538,554 538,554 588,470
Unreserved - undesignated 91,510 91,510
Total liabilities and fund balance $97,306 $539,767 $637,073 $590,604
87
Exhibit D-2
CITY OF FRIDLEY, MINNESOTA
DEBT SERVICE .FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
Year Ended December 31, 1986
With Comparative Totals for Year Ended December 31, 1985
Totals ._
City HRA 1986 1985
Revenues:
Taxes $27,654 $ $ 27,654 $ 28,460
Tax increment 165,109
Intergovernmental - Homestead credit 7,519 7,519 6,467
Interest on investments 5,880 92,944 98,824 8,328
Total revenues 41,053 92,944 133,997 208,364
Expenditures:
General government 79,634 79,634
Debt service -
Principal retirement 35,000 180,000 215,000 120,000
Interest and fiscal charges 660 791,111 791,771 234,029
Total expenditures 35,660 1,050,745 1,086,405 354,029
Excess (deficiency) of revenues
over expenditures 5,393 (957,801) (952,408) (145,665)
Other financing sources:
Bond proceeds 76,825 76,825
Operating transfers in -
HRA Capital Projects Fund 917,177 917,177 187,465
Total other financing sources -0- 994,002 994,002 187,465
Excess of revenues and other
financing sources over
expenditures 5,393 36,201 41,594 41,800
Fund balance January 1 86,117 502,353 588,470 546,670
Fund balance December 31 $91,510 $ 538,554 $ 630,064 $588,470
88
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 project 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 money received from property taxes
that are used to finance major improvements and the acquistion of assets
that require a large capital outlay.
Sears Fund
This fund is used to account for the revenues and expenditures that are
related to the construction of an outdoor athletic recreation facility.
Civic Center Improvement Fund
This fund was established to account for the revenues and expenditures
associated with the interior remodeling of the Fridley Civic Center.
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, 1986
With Comparative Totals for December 31, 1985
Civic
Capital Center
Improvement Sears Improvement
Assets
Cash $ 7,637 $ 378 $ 61,648
Cash in escrow
Investments 1,727,424 61,395 538,846 --
Receivables:
Accounts
Taxes -
Unremitted 4,681
Delinquent 2,667
Interest 7,490 269 2,361
Due from other funds 25,000
Advance to Management Information Services Fund 25,000
Total assets $1,799,899 $62,042 $602,855 --
Liabilities and Fund Balance --
Liabilities:
Advance from city's general account
Accounts payable 1,827
Deposits payable
Deferred revenue 2,667
Due to other funds "-
Due to other governments
Total liabilities 2,667 -0- 1,827
Fund balance:
Reserved for advance to other fund 25,000
Reserved for construction 601,028
Reserved for debt service
Unreserved -
Designated for fixed asset replacement 1,709,033
Designated for park improvement 63,199 50,000
Undesignated 12,042
Total fund balance 1,797,232 62,042 601,028
Total liabilities and fund balance $1,799,899 $62,042 $602,855
90
Exhibit E-1
Totals
HRA 1986 1985
$ 6,161 $ 75,824 $ 500,512
11,292,009
9,434,609 11,762,274 3,276,567
4,331
362,903 367,584 2,065
117,881 120,548 8,888
112,752 122,872 21,680
11,771 36,771 86,009
25,000 50,000
$10,046,077 $12,510,873 $15,242,061
$ $ $ 136,006
4,551 6,378
10,850
117,881 120,548 8,888
101,555 101,555 113,086
2,108 2,108
226,095 230,589 268,830
25,000 50,000
-, 5,774,379 6,375,407 9,257,772
4,045,603 4,045,603 4,045,603
1,709,033 1,510,271
113,199 113,199
12,042 6,511
9,819,982 12,280,284 14,983,356
$10,046,077 $12,510,873 $15,252,186
91
CITY OF FRIDLEY, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
Year Ended December 31, 1986
With Comparative Totals for Year Ended December 31, 1985
Civic
Capital Center
Improvement Sears Improvement
Revenues:
Taxes -
Tax increment $ $ $
Current ad valorem taxes 36,102
Delinquent ad valorem taxes 581
Total taxes 36,683 -0- -0-
Intergovernmental revenue -
State credits 8,280
Total intergovernmental revenue 8,280 -0- -0-
Interest on investments 157,338 5,531 48,800
Miscellaneous revenue -
Rental income
Sale of property
Donations
Other
Total miscellaneous revenue -0- -0- -0-
Total revenues 202,301 5,531 48,800
(Continued)
92
Exhibit E-2
Totals
HRA 1986 1985
$ 858,253 $ 858,253 $401,577
36,102 35,409
581 1,080
-' 858,253 894,936 438,066
9,119 17,399 15,530
9,119 17,399 15,530
.� 777,769 989,438 284,905
52,150 52,150 26,764
120,043 120,043 60,000
50,000
10,850 10,850 657
183,043 183,043 137,421
1,828,184 2,084,816 875,922
93
CITY OF FRIDLEY, MINNESOTA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (Continued)
Year Ended December 31, 1986
With Comparative Totals for Year Ended December 31, 1985
Civic
Capital Center
Improvement Sears Improvement
Expenditures:
Current -
General government $ $ $ 5,476
Capital outlay 35,758
Total expenditures 35,758 -0- 5,476
Excess (deficiency) of revenues
over expenditures 166,543 5,531 43,324
Other financing sources (uses) :
Bond proceeds
Operating transfers in (out) -
General Fund 18,600 58,304
Grant Management Fund (11,381)
HRA Debt Service Fund
Remittance to escrow agent
Defeasance of debt
Total other financing sources (uses) 7,219 -0- 58,304
Excess (deficiency) of revenues and other
financing sources over expenditures and
other financing uses 173,762 5,531 101,628
Fund balance January 1 1,623,470 56,511 499,400
Fund balance December 31 $1,797,232 $62,042 $601,028 '^
94
Exhibit E-2
Continued
Totals
HRA 1986 1985
$ 562,191 $ 567,667 $ 254,643
1,613,481 1,649,239 5,501,013
2,175,672 2,216,906 5,755,656
(347,488) (132,090) (4,879,734)
9,935,119 9,935,119 17,407,887
— 76,904 282,195
(11,381)
(917,177) (917,177) (187,465)
(104,447) (104,447)
(11,550,000) (11,550,000)
(2,636,505) (2,570,982) 17,502,617
(2,983,993) (2,703,072) 12,622,883
12,803,975 14,983,356 2,360,473
$ 9,819,982 $12,280,284 $14,983,356
96
SPECIAL ASSESSMENT FUNDS
Special Assessment Funds are used to account for the construction and
financing of certain public improvements such as residential streets ,
sidewalks and storm sewers or for the provision of services which are to be
paid for solely by the benefited property owner. The fact that special
assessment improvements are paid for completely or in part by property
owners in a limited geographical area deemed to be benefited distinguishes
them from improvements that benefit the entire community and which are paid
for out of general revenues or through issuance of general obligation
bonds.
Special Assessments Fund
This fund is used for the construction of improvements and the collection
of assessments from properties benefiting from the improvements . The
payments for the principal and interest on bonds used to finance
improvements are expended through this fund.
Revolving Fund
This fund is used for providing temporary financing for small improvements
undertaken by the City until permanent financing is obtained.
Exhibit F-1
CITY OF FRIDLEY, MINNESOTA
SPECIAL ASSESSMENT FUNDS
COMBINING BALANCE SHEET
December 31, 1986
With Comparative Totals for December 31, 1985
Special Totals
Assessment Revolving 1986 1985
Assets
Cash $ 51,781 $ $ 51,781 $
Cash in escrow 3,015,614
Investments 11,395,376 972,269 12,367,645 9,367,454
Receivables :
Special Assessments -
... Deferred 3,752,713 63,245 3,815,958 3,489,207
Delinquent 169,139 2,319 171,458 337,967
Interest 44,819 4,232 49 ,051
_ Due from other funds 87,868 87 ,868 87,059
Due from other governments 16,591 16 ,591 175,233
Total assets $15,518,287 $1,042,065 $16,560,352 $16,472,534
Liabilities and Fund Balance
Liabilities:
Advance from city's general account $ 961,853 $ 10,171 $ 972,024 $ 1,596,937
Accounts payable 40,903 40,903 24,292
Deposits payable 651 147,121 147,772 131,447
Contracts payable 48,216 48,216
_ Salaries payable 784 784 492
Deferred revenue 3,921,852 65,564 3,987,416 3,827,174
Due to other funds 61,009
Bonds payable 5,380,000 5,380,000 6,350,000
Total liabilities 10,354,259 222,856 10,577,115 11,991,351
Fund balance:
Reserved for encumbrances 526,468 526,468 562,249
Reserved for debt service 1,523,033 1,523,033 5,152,323
Unreserved - undesignated 3,114,527 819,209 3,933,736 (1,233,389)
Total fund balance 5,164,028 819,209 5,983,237 4,481,183
Total liabilities and
fund balance $15,518,287 $1,042,065 $16,560,352 $16,472,534
97
Exhibit F-2
CITY OF FRIDLEY, MINNESOTA
SPECIAL ASSESSMENT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
Year Ended December 31, 1986
With Comparative Totals for Year Ended December 31, 1985
Special Totals
Assessment Revolving 1986 1985
Revenues:
Special assessments $1,348,167 $ 16,804 $1,364,971 $1,087, 362 '^
Intergovernmental revenue 64,463 64,463 165,531
Interest on investments 1,061,842 84,192 1,146,034 869,211
Miscellaneous 8,327 8, 327 127,713 ..,
Total revenues 2,482,799 100,996 2,583,795 2,249,817
Expenditures:
Capital projects 714,677 714,677 1,202, 588
Debt service -
Interest and fiscal charges 509,052 509,052 414,518
Total expenditures 1,223,729 -0- 1,223,729 1,617,106
Excess of revenues over
expenditures 1,259,070 100,996 1,360,066 632,711
Other financing sources (uses) :
Operating transfers in (out) -
General Fund 110,032 110,032 90,423
Municipal State Aid Fund 117,580 117,580
Public Utility Fund 224 (15,848) (15,624) (13,638)
Remittance to escrow agent (70,000) (70,000)
Total other financing
sources (uses) 157,836 (15,848) 141,988 76,785
Excess of revenues and
other financing sources
over expenditures and
other financing uses 1,416,906 85,148 1,502,054 709,496
Fund balance January 1 3,747,122 734,061 4,481,183 3,771,687
Fund balance December 31 $5,164,028 $819,209 $5,983,237 $4,481,183
96
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 muncipal enterprise on the same basis as they can the
performance of investor-owned enterprises.
Liquor Fund
This fund accounts for the operation of two municipal off-sale liquor
establishments.
Public Utilities Fund
This fund accounts for the operation of the City-owned sewer and water
system.
Exhibit G-1
CITY OF FRIDLEY, MINNESOTA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
December 31, 1986
With Comparative Totals for December 31, 1985
Public Totals
Liquor Utilities 1986 1985
Assets
Current assets:
Cash $ 112,678 $ 30,025 $ 142,703 $ 157,598
Investments 103,182 4,962 , 110 5,065,292 4,703,250
Receivables:
Accounts 5,681 676,060 681,741 619,413
-' Interest 1,186 21,633 22, 819
Due from other governments 61,208 61,208 94,800
Inventories 473,705 3,620 477,325 365,170
Prepaid expenses 37,234 95,245 132,479
Total current assets 733,666 5,849,901 6,583,567 5,940,231
Long term receivable - Metropolitan
Waste Control Commission -0- 294,430 294,430 316,874
Restricted assets (for debt service) :
Cash 16,217 16,217 13,638
Investments, at cost 59,913 59,913 94,855
Interest receivable 262 262
Total restricted assets -0- 76,392 76,392 108,493
Property and equipment, at cost:
Property and equipment 464,538 14, 335,440 14,799,978 14,636,409
_ Less : accumulated depreciation (161,247) (2,507 ,916) (2,669,163) (2,360,461)
Net property and equipment 303,291 11,827,524 12,130,815 12,275,948
Total assets $1,036,957 $18,048,247 $19,085,204 $18,641,546
Liabilities and Fund Equity
Current liabilities:
Accounts payable $ 117,169 $ 46,120 $ 163,289 $ 112,136
Salaries payable 6,819 12,483 19, 302 15,650
Due to other funds 1,771 1,771
Due to other governments 23,140 2,608 25,748 36 ,416
Bonds payable 50,000 50,000 50,000
Total current liabilities 148,899 111,211 260,110 214,202
Long-term liabilities:
Bonds payable (net of current
portion) -0- 20,000 20,000 70,000
Total liabilities 148,899 131,211 280,110 284,202
Fund equity:
Contributed capital 10,861,185 10,861,185 10,861,185
Retained earnings
Reserved for debt service 6,392 6,392
Unreserved 888,058 7,049,459 7,937,517 7,496,159
Total fund equity 888,058 17,917,036 18,805,094 18,357,344
Total liabilities and
fund equity $1,036,957 $18,048,247 $19,085,204 $18,641,546
99
Exhibit G-2 CITY OF FRIDLEY, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
Year Ended December 31, 1986
With Comparative Totals for Year Ended December 31, 1985
Public Totals
Liquor Utilities 1986 1985
Sales and cost of sales:
Sales $2, 547,533 $ $2,547,533 $2, 303,732
Cost of sales 2,061,720 2,061,720 1,979,197
Gross profit 485,813 -0- 485,813 324,535 ..
Operating revenues:
Water sales and sewer rents 2,277,244 2,277,244 2,078,176
Other 156,856 156,856 218,239
Total operating revenues -0- 2,434,100 2,434,100 2,296,415
Operating expenses :
Personal services 233,996 507,039 741,035 692,295
Supplies and other charges -
Disposal charges 1,121,622 1,121,622 1,023,558
Other 145,803 592,886 738,689 617,182
Depreciation 27,351 300,501 327,852 326,060
Total operating expenses 407,150 2,522,048 2,929,198 2,659,095
Operating income (loss) 78,663 (87,948) (9,285) (38,145)
Non-operating revenues (expenses) :
Interest on investments 24,589 468,415 493,004 459,648
Debt service 1,807 (3,400) (1,593) (5,152)
Other 2,482 -'
Total non-operating
revenues 26,396 465,015 491,411 456,978
Income before operating
transfers 105,059 377,067 482,126 418,833
Operating transfers in (out) :
General Fund (50,000) (50,000)
Special Assessment Fund 15,624 15,624
Revolving Fund 13,638
Internal Service Funds (8,585)
Total operating transfers (50,000) 15,624 (34,376) 5,053
Net income 55,059 392,691 447,750 423,886
Retained earnings January 1 832,999 6,663,160 7,496,159 7,072,273 -
Retained earnings December 31 $ 888,058 $7,055,851 $7,943,909 $7,496,159
100
Exhibit G-3
CITY OF FRIDLEY, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION
Year Ended December 31, 1986
With Comparative Totals for Year Ended December 31, 1985
- Public Totals
Liquor Utilities 1986 1985
Sources of working capital:
Operations:
Net income for the year $ 55,059 $392,691 $447,750 $423,886
Items not requiring working capital
-. Depreciation 27, 351 300, 501 327,852 326,060
Loss on disposal of equipment 223 223
..... Working capital provided
by operations 82,633 693,192 775,825 749,946
Proceeds from sale of equipment 8 ,000 8,000
Decrease in long-term receivable 22,444 22,444 17,788
Decrease in restricted assets 32, 101 32,101
Total sources of working
capital 90,633 747,737 838,370 767,734
Uses of working capital:
- Increase in restricted assets 20,444
Acquisition of property and
equipment 1,135 189,807 190,942 67,703
... Decrease in long-term bonds payable 50,000 50,000 50,000
Total uses of working capital 1,135 239,807 240,942 138,147
Increase in working capital $ 89,498 $507,930 $597,428 $629,587
_ Elements of increase (decrease)
in working capital:
Cash $(16,219) $ 1,324 $(14,895) $(74,375)
Investments (38,322) 400,364 362,042 593,772
-' Accounts receivable 5,681 56 ,647 62,328 142,491
Interest receivable 1, 186 21,633 22,819
Due from other governments (33,592) (33,592) (63,095)
Inventories 111,522 633 112,155 11,475
Prepaid expenses 37,234 95,245 132,479 (124,810)
Accounts payable (21,047) (30,106) (51,153) 155,105
Contracts payable 10,744
'.. Salaries payable (551) (3,101) (3,652) (6,251)
Due to other funds (1,771) (1,771)
Due to other governments 11,785 (1,117) 10,668 (15,469)
Increase in working capital $ 89,498 $507,930 $597,428 $629,587
101
Exhibit G-4
CITY OF FRIDLEY, MINNESOTA
LIQUOR ENTERPRISE FUND
COMPARATIVE BALANCE SHEET
December 31, 1986 and 1985
1986 1985 -'
Assets
Current assets:
Cash $ 112,678 $128,897
Investments 103,182 141,504
Receivables:
Accounts 5,681
Interest 1,186
Inventories 473,705 362,183
Prepaid expense 37 ,234
Total current assets 733,666 632,584
Property and equipment, at cost:
Land 66,961 66,961
Buildings 174,116 174,116 --
Improvements other than buildings 14,791 13,656
Machinery and equipment-- 208,670 217,821
464,538 472,554
Less: accumulated depreciation (161,247) (134,824)
Net property and equipment 303,291 337,730
Total assets $1,036,957 $970,314 �.
Liabilities and Fund Equity ..,
Liabilities:
Accounts payable $ 117 ,169 $ 96,122
Salaries payable 6,819 6,268
Due to other funds 1,771
Due to other governments 23 ,140 34,925 ^.
Total liabilities 148,899 137,315
Fund equity: ...
Retained earnings - unreserved 888,058 832,999
Total liabilities and fund equity $1,036,957 $970,314
102
Exhibit G-5
CITY OF FRIDLEY, MINNESOTA
... LIQUOR ENTERPRISE FUND
COMPARATIVE STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN RETAINED EARNINGS
Years Ended December 31, 1986 and 1985
1986 1985
Sales and cost of sales:
, Sales $2,547,533 $2,303,732
..� Cost of sales 2,061,720 1,979,197
Gross profit 485,813 324,535
... Operating expenses:
Selling:
Personal services 152,075 167,519
Supplies and other charges 3,466 2,610
Total selling expenses 155,541 170,129
Overhead:
Supplies and other charges 128,797 123,190
Depreciation 27,351 25,122
Total overhead expenses 156,148 148,312
Administrative:
Personal services 81,921 68,864
Supplies and other charges 13,540 18,626
Total administrative expenses 95,461 87,490
Total operating expenses 407,150 405,931
r
Operating income (loss) 78,663 (81,396)
Non-operating revenues:
Interest on investments 24,589 30,775
Other 1,807 2,482
Total non-operating revenues 26,396 33,257
Income (loss) before operating transfers 105,059 (48,139)
Operating transfers in (out) :
General Fund (50,000)
Internal Service Fund 1,340
Total operating transfers (50,000) 1,340
Net income (loss) 55,059 (46,799)
Retained earnings January 1 832,999 879,798
Retained earnings December 31 $ 888,058 $ 832,999
103
Exhibit G-6
CITY OF FRIDLEY, MINNESOTA
LIQUOR ENTERPRISE FUND
COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION
Years Ended December 31, 1986 and 1985
1986 1985
Sources of working capital: —•
Operations:
Net income (loss) for the year $ 55,059 $(46,799)
Items not requiring working capital
Depreciation 27,351 25,122
Loss on disposal of equipment 223
Working capital provided (used)
by operations 82,633 (21,677)
Proceeds from sale of equipment 8,000
Total sources of working capital 90,633 (21,677) --
Uses of working capital:
Acquisition of property and equipment 1,135 46,981
Increase (decrease) in working capital $ 89,498 $(68,658)
Elements of increase (decrease) in
working capital:
Cash $ (16,219) $(71,218)
Investments (38,322) (88,659)
Accounts receivable 5,681
Interest receivable 1,186 --
Inventories 111,522 12,680
Prepaid expense 37,234
Accounts payable (21,047) 95,900
Salaries payable (551) (1,855)
Due to other funds (1,771)
Due to other governments 11,785 (15,506)
Increase (decrease) in working capital $ 89,498 $(68,658)
104
Exhibit G-7
CITY OF FRIDLEY, MINNESOTA
PUBLIC UTILITY ENTERPRISE FUND
COMPARATIVE BALANCE SHEET
December 31, 1986 and 1985
1986 1985
Assets
Current assets:
Cash $ 30,025 $ 28, 701
Investments 4,962,110 4,561,746
Receivables:
Accounts 676,060 619,413
Interest 21,633
Due from other governments 61,208 94,800
Inventories 3,620 2,987
Prepaid expense 95,245
Total current assets 5,849,901 5,307,647
Long-term receivable - Metropolitan
Waste Control Commission 294,430 316,874
Restricted assets:
Cash 16,217 13 ,638
Investments, at cost 59,913 94,855
Interest receivable 262
Total restricted assets 76,392 108,493
Property and equipment, at cost:
... Land 154,881 154,881
Buildings 824,078 824,078
Improvements other than buildings 324,016 233,827
Machinery and equipment 2,171,280 2,089,884
Water and sewer lines 10,861,185 10,861,185
14,335,440 14,163,855
Less: accumulated depreciation (2,507,916) (2,225,637)
Net property and equipment 11,827,524 11,938,218
Total assets $18,048,247 $17,671,232
-� Liabilities and Fund Equity
Current liabilities:
Accounts payable $ 46,120 $ 16,014
Salaries payable 12,483 9,382
Due to other governments 2,608 1,491
Bonds payable 50,000 50,000
Total current liabilities 111,211 76,887
Long-term liabilities:
Bonds payable (net of current portion) 20,000 70,000
Total liabilities 131,211 146,887
Fund equity:
.� Contributed capital 10,861,185 10,861,185
Retained earnings
Reserved for debt service 6, 392
Unreserved 7 ,049,459 6,663,160
Total fund equity 17,917,036 17,524,345
Total liabilities and fund equity $18,048,247 $17,671,232
105
Exhibit G-8
CITY OF FRIDLEY, MINNESOTA
PUBLIC UTILITY ENTERPRISE FUND
COMPARATIVE STATEMENT OF REVENUES, _.
EXPENSES AND CHANGES IN RETAINED EARNINGS
Years Ended December 31, 1986 and 1985
1986 1985
Operating revenues:
Water sales and sewer rents $2,277,244 $2,078,176
Other 156,856 218,239
Total operating revenues 2,434,100 2,296,415
Operating expenses: ,^
Personal services 507,039 456,058
Supplies and other charges -
Disposal charges 1,121,622 1,023,558
Other 592,886 472,610
Depreciation 300,501 300,938
Total operating expenses 2,522,048 2,253,164
Operating income (loss) (87,948) 43,251
Non-operating revenues (expenses) :
Interest on investments 468,415 428,873
Debt service (3,400) (5,152)
Total non-operating revenues (expenses) 465,015 423,721
Income before operating transfers 377,067 466,972
Operating transfers from (to) :
Special Assessment Fund 15,624
Revolving Fund 13,638
Internal Service Funds (9,925) —
Total operating transfers 15,624 3,713
Net income 392,691 470,685 --
Retained earnings January 1 6,663,160 6,192,475
Retained earnings December 31 $7,055,851 $6,663,160
106
Exhibit G-9
CITY OF FRIDLEY, MINNESOTA
PUBLIC UTILITY ENTERPRISE FUND
COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION
Years Ended December 31, 1986 and 1985
1986 1985
Sources of working capital:
Operations:
Net income for the year $392,691 $470,685
Items not requiring working capital
Depreciation 300,501 300,938
Working capital provided by operations 693,192 771,623
Decrease in long-term receivable 22,444 17,788
Decrease in restricted assets 32,101
Total sources of working capital 747,737 789,411
Uses of working capital:
Increase in restricted assets 20,444
Acquisition of property and equipment 189,807 20,722
Decrease in long-term revenue bonds payable 50,000 50,000
Total uses of working capital 239,807 91,166
Increase in working capital $507,930 $698,245
Elements of increase (decrease) in
working capital:
Cash $ 1,324 $ (3,157)
Investments 400,364 682,431
Accounts receivable 56,647 142,491
Interest receivable 21,633
Due from other governments (33,592) (63,095)
Inventories 633 (1,205)
Prepaid expense 95,245 (124,810)
Accounts payable (30,106) 59,205
Contracts payable 10,744
Salaries payable (3,101) (4,396)
Due to other governments (1,117) 37
Increase in working capital $507,930 $698,245
107
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.
Exhibit H-1
CITY OF FRIDLEY, MINNESOTA
-- INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 1986
-. With Comparative Totals for December 31, 1985
Management
--
Employee Information Totals
Benefits Services 1986 1985
"' Assets
Current assets:
- Cash $ $ 328 $ 328 $ 19,836
Investments 1,246,809 61,959 1,308,768 1,228,483
Interest receivable 5,391 116 5,507
Total current assets 1,252,200 62,403 1,314,603 1,248,319
Property and equipment, at cost:
Machinery and equipment 204,659 204,659 178,802
"' Less: accumulated depreciation (100,899) (100,899) (63,179)
Net property and equipment -0- 103,760 103,760 115,623
-' Total assets $1,252,200 $166,163 $1,418,363 $1,363,942
- Liabilities and Fund Equity
Current liabilities:
Advance from city's general account $ 17,734 $ $ 17,734 $
Accounts payable 219 895 1,114 16,182
Leave payable 797,583 797,583 834,301
Due to other funds 25,000 25,000 25,000
Due to other governments 8,859
Total current liabilities 815,536 25,895 841,431 884,342
Long-term liability:
Advance from Capital Improvement
Fund (net of current portion) 25,000 25,000 50,000
- Total liabilities 815,536 50,895 866,431 934,342
Fund equity:
Retained earnings -
Reserved 436,664 115,268 551,932 429,600
Total fund equity 436,664 115,268 551,932 429,600
Total liabilities and
fund equity $1,252,200 $166,163 $1,418,363 $1,363,942
109
Exhthlt H-2
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND --
CHANGES IN RETAINED EARNINGS
Year Ended December 31, 1986
With Comparative Totals for Year Ended December 31, 1985 -^
Management ,^
Employee Information Totals
Benefits Services 1986 1985
Operating revenues: -"
Charges for services $204,424 $118,241 $322,665 $349,174
Operating expenses:
Supplies and other services 40,314 40,314 74,731
Benefit payments 229,602 229,602 163,238
Depreciation 37,720 37,720 34,416
Total operating expenses 229,602 78,034 307,636 272,385
Operating income (loss) (25,178) 40,207 15,029 76,789
Non-operating revenues (expenses) :
Interest on investments 112,581 2,979 115,560 105,354
Debt service (5,250) (5,250) (7,000) ""
Other (2,177)
Total non-operating revenues
(expenses) 112,581 (2,271) 110,310 96,177
Income before operating
transfers 87,403 37,936 125,339 172,966 -
Operating transfers in (out) :
General Fund (3,007) (3,007) 11,251
Public Utilities Fund 9,925
Liquor Fund (1,340)
Total operating transfers (3,007) -0- (3,007) 19,836
Net income 84,396 37,936 122,332 192,802
Retained earnings January 1 352,268 77,332 429,600 236,798
Retained earnings December 31 $436,664 $115,268 $551,932 $429,600
110
Exhibit H-3
CITY OF FRIDLEY, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION
Year Ended December 31, 1986
With Comparative Totals for Year Ended December 31, 1985
Management
_. Employee Information Totals
Benefits Services 1986 1985
Sources of working capital:
Operations:
Net income for the year $ 84,396 $37,936 $122,332 $192,802
Items not requiring working
capital - depreciation 37,720 37,720 34,416
Total sources of working
capital 84,396 75,656 160,052 227,218
Uses of working capital:
Acquisition of machinery and equipment 25,857 25,857 23,335
Decrease in long-term advance from
Capital Improvement Fund 25,000 25,000 25,000
Total uses of working capital -0- 50,857 50,857 48,335
Increase in working capital $ 84,396 $24,799 $109,195 $178,883
Elements of increase (decrease)
in working capital:
Cash $(19,836) $ 328 $(19,508) $(35,060)
Investments 71,217 9,068 80,285 173,849
Interest receivable 5,391 116 5,507
Advance from city's general account (17,734) (17,734)
Accounts payable (219) 15,287 15,068 21,388
Leave payable 36,718 36,718 19,836
Due to other governments 8,859 8,859 (1,130)
Increase in working capital $ 84,396 $24,799 $109,195 $178,883
111
Exhibit H-4
CITY OF FRIDLEY, MINNESOTA
EMPLOYEE BENEFITS INTERNAL SERVICE FUND
COMPARATIVE BALANCE SHEET
December 31, 1986 and 1985
1986 1985
Assets
Cash $ $ 19,836
Investments 1,246,809 1,175,592
Interest receivable 5,391
Total assets $1,252,200 $1,195,428
Liabilities and Fund Equity
Liabilities:
Advance from city's general account $ 17,734 $
Accounts payable 219
Leave payable 797,583 834,301
Due to other governments 8,859
Total liabilities 815,536 843,160
Fund equity:
Retained earnings -
Reserved for employee benefits 436,664 352,268
Total liabilities and fund equity $1,252,200 $1,195,428
112
Exhibit H-5
CITY OF FRIDLEY, MINNESOTA
EMPLOYEE BENEFITS INTERNAL SERVICE FUND
COMPARATIVE STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN RETAINED EARNINGS
Years Ended December 31, 1986 and 1985
1986 1985
Operating revenues:
Charges for services $204,424 $186,001
Operating expenses:
Benefit payments 229,602 163,238
Operating income (loss) (25,178) 22,763
Non-operating revenues:
Interest on investments 112,581 103,455
Total non-operating revenues 112,581 103,455
Income before operating transfers 87,403 126,218
Operating transfers in (out) :
General Fund (3,007) 11,251
Public Utilities Fund 9,925
Liquor Fund (1,340)
Total operating transfers (3,007) 19,836
Net income 84,396 146,054
Retained earnings January 1 352,268 206,214
Retained earnings December 31 $436,664 $352,268
113
Exhibit H-6
CITY OF FRIDLEY, MINNESOTA
EMPLOYEE BENEFITS INTERNAL SERVICE FUND
COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION '^
Years Ended December 31, 1986 and 1985
1986 1985
Sources of working capital: —•
Operations:
Net income $ 84,396 $146,054
Elements of increase (decrease) in
working capital:
Cash $(19,836) $ 6,390
Investments 71,217 120,958
Interest receivable 5,391
Advance from city's general account (17,734)
Accounts payable (219)
Leave payable 36,718 19,836
Due to other governments 8,859 (1,130)
Increase in working capital $ 84,396 $146,054
114
Exhibit H-7
CITY OF FRIDLEY, MINNESOTA
MANAGEMENT INFORMATION SERVICES INTERNAL SERVICE FUND
_ COMPARATIVE BALANCE SHEET
December 31, 1986 and 1985
1986 1985
Assets
Current assets:
Cash $ 328 $
Investments 61,959 52,891
Interest receivable 116
Total current assets 62,403 52,891
Property and equipment, at cost:
Machinery and equipment 204,659 178,802
Less: accumulated depreciation (100,899) (63,179)
Net property and equipment 103,760 115,623
Total assets $166,163 $168,514
Liabilities and Fund Equity
Current liabilities:
Accounts payable $ 895 $ 16,182
Due to other funds 25,000 25,000
Total current liabilities 25,895 41,182
Long-term liability:
Advance from Capital Improvement Fund
(net of current portion) 25,000 50,000
Total liabilities 50,895 91,182
Fund equity:
Retained earnings -
Reserved for capital outlay 115,268 77,332
Total fund equity 115,268 77,332
Total liabilities and fund equity $166,163 $168,514
115
Exhibit H-8
a
CITY OF FRIDLEY, MINNESOTA
MANAGEMENT INFORMATION SERVICES INTERNAL SERVICE FUND
COMPARATIVE STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN RETAINED EARNINGS
Years Ended December 31, 1986 and 1985
1986 1985
Operating revenues:
Charges for services $118,241 $163,173
Operating expenses:
Supplies and other services 40,314 74,731
Depreciation 37,720 34,416
Total operating expenses 78,034 109,147
Operating income 40,207 54,026
Non-operating revenues (expenses) :
Interest on investments 2,979 1,899
Debt service (5,250) (7,000)
Other (2,177)
Total non-operating revenues (expenses) (2,271) (7,278)
Net income 37,936 46,748
Retained earnings January 1 77,332 30,584 ,^
Retained earnings December 31 $115,268 $ 77,332
116
Exhibit H-9
CITY OF FRIDLEY, MINNESOTA
MANAGEMENT INFORMATION SERVICES INTERNAL SERVICE FUND
COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION
Years Ended December 31, 1986 and 1985
1986 1985
Sources of working capital:
Operations:
Net income for the year $37,936 $ 46,748
_ Items not requiring working
capital - depreciation 37,720 34,416
Total sources of working capital 75,656 81,164
Uses of working capital:
Acquisition of machinery and equipment 25,857 23,335
Decrease in long-term advance from
Capital Improvement Fund 25,000 25,000
Total uses of working capital 50,857 48,335
Increase in working capital $24,799 $ 32,829
Elements of increase (decrease) in
working capital:
Cash $ 328 $(41,450)
Investments 9,068 52,891
Interest receivable 116
Accounts payable 15,287 21,388
Increase in working capital $24,799 $ 32,829
117
TRUST AND AGENCY FUNDS
Trust and Agency Funds are used to account for assets held by a government
in a trustee or agent capacity for individuals , private organizations ,
other governments or other funds.
Expendable Trust Fund
The City of Fridley maintains only one Expendable Trust Fund that is used
to defray the city adminstrative cost associated with the issuance of
industrial revenue development bonds.
Six Cities Watershed Agency Fund
This fund was established to account for the collection of taxes received
from the County on behalf of the Six Cities Watershed District.
Hotel/Motel Agency Fund
This fund was established to account for the collection of a three percent
tax that has been imposed on all the hotels and motels in the north
suburban 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 in this area.
Deferred Compensation Agency Fund
This fund accounts for deposits held in trust with the International City
Managers Association (ICMA) on behalf of the City of Fridley employees .
Employees make pretax contributions to this organization throughout their
careers which are used as a retirement benefit.
Defeasance Agency Fund
This fund accounts for deposits held by the city on behalf of the First
Trust Company, Inc. of St. Paul, the escrow agent for the defeased 1985
General Obligation Tax Increment bonds. Funds will be transferred to the
escrow agent as debt service payments come due.
Exhibit 1-1
CITY OF FRIDLEY, MINNESOTA
TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
December 31, 1986
With Comparative Totals for December 31, 1985
Expendable Agency Totals
Trust Funds 1986 1985
Assets
Cash $ 552 $ 482,441 $ 482,993 $ 2,339
Investments 63,240 1,790,194 1,853,434 44,080
_ Receivables:
Accounts 2,309 2,309
Taxes -
Unremitted 1,055 1,055 120
Delinquent 803 803 955
Interest 272 272
Deposits 1,425,898 1,425,898 1,041,402
Total assets $64,064 $3,702,700 $3,766,764 $1,088,896
Liabilities and Fund Balance
Liabilities:
Accounts payable $ $ $ $ 5,199
Deposits payable 49,045 3,691,298 3,740,343 1,075,123
Deferred revenue 803 803 955
Due to other governments 10,599 10,599 126
Total liabilities 49,045 3,702,700 3,751,745 1,081,403
Fund balance:
Unreserved - undesignated 15,019 -0- 15,019 7,493
Total liabilities and fund balance $64,064 $3,702,700 $3,766,764 $1,088,896
119
Exhibit 1-2
CITY OF FRIDLEY, MINNESOTA
TRUST FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
Years Ended December 31, 1986 and 1985
1986 1985
Revenues:
Interest on investments $ 7,526 $1,486
Fund balance January 1 7,493 6,007
Fund balance December 31 $15,019 $7,493
120
Exhibit 1-3
CITY OF FRIDLEY, MINNESOTA
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED DECEMBER 31, 1986
Balance Balance
January 1 Additions Deletions December 31
Assets
Cash $ 6 $ 507,810 $25,375 $ 482,441
Investments 1,790,194 1,790,194
Receivables:
Accounts 2,309 2,309
Taxes -
Unremitted 120 1,055 120 1,055
Delinquent 955 6 158 803
Deposits 1,041,402 398,759 14,263 1,425,898
Total assets $1,042,483 $2,700,133 $39,916 $3,702,700
Liabilities
Deposits payable $1,041,402 $2,664,159 $14,263 $3,691,298
Deferred revenue 955 6 158 803
Due to other governments 126 21,170 10,697 10,599
Total liabilities $1,042,483 $2,685,335 $25,118 $3,702,700
121
Exhibit 1-4
CITY OF FRIDLEY, MINNESOTA
SIX CITIES WATERSHED AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
YEAR ENDED DECEMBER 31, 1986
Balance Balance
January 1 Additions Deletions December 31 ._
Assets
Cash $ 6 $15,024 $16,085 $(1,055)
Investments 5,972 5,972
Taxes receivable:
Unremitted 120 1,055 120 1,055
Delinquent 955 6 158 803
Total assets $ 1,081 $22,057 $16,363 $ 6,775 --
Liabilities
Deferred revenue $ 955 $ 6 $ 158 $ 803
Due to other governments 126 10,021 4,175 5,972
Total liabilities $ 1,081 $10,027 $ 4,333 $ 6,775
CITY OF FRIDLEY, MINNESOTA
HOTEL/MOTEL AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITY
YEAR ENDED DECEMBER 31, 1986
Balance Balance
January 1 Additions Deletions December 31
Assets -^
Cash $ $11,608 $9,290 $2,318
Accounts receivable 2,309 2,309 --
Total assets $ -0- $13,917 $9,290 $4,627
Liability
Due to other governments $ $11,149 $6,522 $4,627 ...,
Total liability $ -0- $11,149 $6,522 $4,627
122
Exhibit 1-5
CITY OF FRIDLEY, MINNESOTA
DEFERRED COMPENSATION AGENCY FUND
STATEMENT OF CHANGES IN ASSET AND LIABILITY
YEAR ENDED DECEMBER 31, 1986
Balance Balance
January 1 Additions Deletions December 31
Asset
Deposits $1,041,402 $398,759 $14,263 $1,425,898
Total asset $1,041,402 $398,759 $14,263 $1,425,898
Liability
Deposits payable $1,041,402 $398,759 $14,263 $1,425,898
Total liability $1,041,402 $398,759 $14,263 $1,425,898
CITY OF FRIDLEY, MINNESOTA
DEFEASANCE AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITY
YEAR ENDED DECEMBER 31, 1986
Balance Balance
January 1 Additions Deletions December 31
Assets
Cash $ $ 481,178 $ $ 481,178
Investments 1,784,222 1,784,222
Total asset $ -0- $2,265,400 $ -0- $2,265,400
Liability
Deposits payable $ $2,265,400 $ $2,265,400
Total liability $ -0- $2,265,400 $ -0- $2,265,400
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 J-1
CITY OF FRIDLEY, MINNESOTA
COMPARATIVE STATEMENT OF GENERAL FIXED ASSETS
December 31, 1986 and 1985
1986 1985
General fixed assets:
.., Land $ 1,717,078 $ 1,678,372
Building 1,773,058 1,773,058
Improvements other than building 17,591,857 16,286,590
_ Machinery and equipment 2,431,565 2,279,651
Construction in progress 936,988 2,309,766
Total general fixed assets $24,450,546 $24,327,437
Investment in general fixed assets from:
General obligation bonds $ 856,597 $ 856,597
Federal and state aid 1,632,960 1,632,960
General fund revenues 5,433,322 5,214,906
Special revenue fund revenues 90,680 36,438
Special assessments 15,037,678 15,222,985
Private gifts 730,628 730,628
Other sources 668,681 632,923
Total investment in general fixed assets $24,450,546 $24,327,437
125
Exhibit J-2
CITY OF FRIDLEY, MINNESOTA
SCHEDULE OF GENERAL FIXED ASSETS -
BY FUNCTION AND ACTIVITY
December 31, 1986
Improvements Machinery
Other than and
Total Land Buildings Buildings Equipment
Function and activity
General government
City manager $ 25,323 $ $ $ $ 25,323
Cable TV 38,565 38,565
Accounting 52,402 52,402
Assessing 7,080 7,080
Elections 33,790 33,790
Planning 12,779 12,779 --
Civic center 740,520 52,496 602,440 28,463 57,121
Total general government 910,459 52,496 602,440 28,463 227,060
Public safety
Police protection 381,919 200 13,557 368,162
Fire protection 599,344 142,532 17,053 439,759
Inspectional services 13,480 13,480
Civil defense 57,955 30,763 27,192
Total public safety 1,052,698 -0- 142,732 61,373 848,593
Public works
Engineering 48,967 48,967
Street improvements 10,639,259 5,764 10,633,495 ....
Storm sewer 5,228,562 5,228,562
Traffic signal 138,243 138,243
City garage 1,271,012 97,940 347,698 21,872 803,502
Parks 3,392, 387 1,254,820 244,020 1,417,979 475,568 T
Total public works 20,718,430 1,358,524 591,718 17,440,151 1,328,037
Recreation/Naturalist
Recreation 1,676 1,676
Naturalist 830,295 306,058 436,168 61,870 26,199
Total recreation/naturalist 831,971 306,058 436,168 61,870 27,875 --
Total general fixed assets
allocated to functions 23,513,558 $1,717,078 $1,773,058 $17,591,857 $2,431,565
Construction in progress 936,988
Total fixed assets $24,450,546
126
Exhibit J-3
CITY OF FRIDLEY, MINNESOTA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS -
-- BY FUNCTION AND ACTIVITY
Year Ended December 31, 1986
General General
Fixed Fixed
_.. Assets Assets
1/1/86 Additions Deductions 12/31/86
Function and activity
General government
City manager $ 24,064 $ 1,785 $ 526 $ 25,323
▪ Cable TV 15,086 23,479 38,565
Accounting 73,589 1,402 22,589 52,402
Assessing 7,080 7,080
Elections 33,790 33,790
Planning 12,333 446 12,779
Civic center 734,887 5,933 300 740,520
Total general government 900,829 33,045 23,415 910,459
Public safety
Public protection 327,199 136,452 81,732 381,919
▪ Fire protection 573,047 26,577 280 599,344
Inspectional services 13,480 13,480
Civil defense 27,192 30,763 57,955
Total public safety 940,918 193,792 82,012 1,052,698
Public works
_ Engineering 49,467 500 48,967
Street improvements 9,707,614 931,645 10,639,259
Water, sewer and storm sewer 4,972,736 255,826 5,228,562
Traffic signal 138,243 138,243
▪ City garage 1,160,675 110,822 485 1,271,012
Parks 3,318,008 89,804 15,425 3,392,387
Total public works 19,346,743 1,388,097 16,410 20,718,430
Recreation/Naturalist
Recreation 798 878 1,676
Naturalist 828,383 1,912 830,295
Total recreation/naturalist 829,181 2,790 -0- 831,971
Construction in progress 2,309,766 705,649 2,078,427 936,988
Total general fixed assets $24,327,437 $2,323,373 $2,200,264 $24,450,546
127
GENERAL LONG TERM DEBT ACCOUNT GROUP
The General Long Term Debt Account Group is set up to account for unmatured
principal and bonds , warrants , notes , or other forms of long term
indebtedness that is secured by the full faith and credit of the City and
is not deemed the primary obligation of any specific special assessment or
enterprise fund of the City.
Exhibit K-1
CITY OF FRIDLEY, MINNESOTA
COMPARATIVE STATEMENT OF GENERAL LONG-TERM DEBT
December 31, 1986 and 1985
1986 1985
Amount available and to be provided for
the payment of general long-term debt
Amount available in HRA Debt Service Fund $ 538,554 $ 588,470
Amount to be provided by future taxes 13,396,446 15,066,530
Total available and to be provided $13,935,000 $15,655,000
General long-term debt payable
General long-term debt payable:
General obligation tax increment
refunding bonds $10,045,000 $11,550,000
Tax increment revenue refunding bonds 3,890,000 4,070,000
Civic center bonds 35,000
Total general long-term debt payable $13,935,000 $15,655,000
129
SUPPLEMENTAL SECTION
Exhibit L-1
- G M I-I C o GEORGE M. HANSEN COMPANY, P.A.
A Professional Corporation of Certified Public•Accountants
-' City Council
City of Fridley, Minnesota
We have examined the general purpose financial statements of the City of
Fridley, Minnesota, for the year ended December 31, 1986, and have issued our
report thereon dated May 22 , 1987 . As part of our examination, 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 , the standards
for financial and compliance audits contained in the Standards for Audit of
Governmental Organizations, Programs, Activities, and Functions, issued by the
U.S. General Accounting Office , the Single Audit Act of 1984 , and the
provisions of OMB 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 : cash , investments ,
receivables, inventories, fixed assets, payables, accrued liabilities , debt,
and fund equity.
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 financial 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, 1986, the City of Fridley, Minnesota, did
not expend any of its federal financial assistance under major federal
financial assistance programs.
With respect to the internal control systems used solely in administering the
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 the nonmajor federal
financial assistance programs of the City of Fridley, Minnesota, did not
extend beyond this preliminary review phase.
1433 UTICA AVENUE SOUTH, SUITE 175 MINNEAPOLIS, MINNESOTA 55416 612/546-2566
131
Exhibit L-1
Continued
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 examination, made in accordance with the standards mentioned above,
would not necessarily disclose material weaknesses in the internal control
systems used solely in administering nonmajor federal financial assistance
programs.
However, our study and evaluation and our examination 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 management and the State
cognizant agency 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.
May 29, 1987
132
Exhibit L-2
G IVI 1-I C o GEORGE M. HANSEN COMPANY, P.A.
A Professional Corporation of Certified Public Accountants
City Council
City of Fridley, Minnesota
We have examined the general purpose financial statements of the City of
Fridley, Minnesota, for the year ended December 31, 1986, and have issued our
report thereon dated May 22, 1987. Our examination was made in accordance
with generally accepted auditing standards; the standards for financial and
compliance audits contained in the Standards for Audit of Governmental
Organizations, Programs, Activities, and Functions, issued by the U.S. General
Accounting Office; the Single Audit Act of 1984; the provisions of OMB
�- Circular A-128, Audits of State and Local Governments; and the provisions of
the Legal Compliance Audit Guide, promulgated by the Legal Compliance Task
Force pursuant to Minnesota Statutes Sec. 6.65; and accordingly, included such
■_ tests of the accounting records and such other auditing procedures as we
considered necessary in the circumstances.
The management of the City of Fridley, Minnesota, is responsible for the
City's compliance with laws and regulations . In connection with the
examination referred to above, we selected and tested transactions and records
from nonmajor federal financial assistance programs to determine the City's
compliance with laws and regulations noncompliance with which we believe could
have a material effect on the allowability of program expenditures.
_ The results of our tests indicate that for the transactions and records tested
the City of Fridley, Minnesota, complied with the laws and regulations
referred to above. Our testing was more limited than would be necessary to
express an opinion on whether the City of Fridley, Minnesota, administered
those programs in compliance in all material respects with laws and
regulations noncompliance with which we believe could have a material effect
on the allowability of program expenditures ; however, with respect to the
transactions that were not tested by us , nothing came to our attention to
indicate that the City of Fridley , Minnesota , had violated laws and
regulations.
The Legal Compliance Audit Guide covers five main categories of compliance to
be tested: contracting and bidding, deposits and investments , conflicts of
interest, public indebtedness , and claims and disbursements . Our study
included all of the listed categories. The results of our tests indicate that
for the items tested, the City of Fridley, Minnesota, complied with the
material terms and conditions of applicable legal provisions . Further, for
the items not tested, based on our examination and the procedures referred to
above nothing came to our attention to indicate that the City of Fridley,
Minnesota, had not complied with such legal provisions.
This report is intended solely for the use of management and the State
cognizant agency 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 pubilc
record.
May 29, 1987
1433 UTICA AVENUE SOUTH, SUITE 175 MINNEAPOLIS, MINNESOTA 55416 61 2/546-2566
133
Exhibit L-3
CITY OF FRIDLEY, MINNESOTA
SCHEDULE OF FEDERAL GRANT ACTIVITY
YEAR ENDED DECEMBER 31, 1986
CFDA # CFDA # CFDA #
21.300 14.219 14.156
Community
Development .�
Revenue Block
Sharing Grant Section 8
Revenues:
Federal grants -
Direct $127,907 $ $ ^,
Flow through 55,080 21,645
Interest on investments 9,726
Total revenues 137,633 55,080 21,645
Expenditures:
Personal services 70,095 1,118 20,515
Professional services 10,000
Human services allocations 38,476
Contractual services 5,486
Supplies and other expenses 65,925 1,130
Capital outlay 43,449
Total expenditures 179,469 55,080 21,645
Excess (deficiency) of revenues
over expenditures (41,836) -0- -0-
Fund Balance January 1 41,836 -0- -0-
Fund Balance December 31 $ -0- $ -0- $ -0-
134
Exhibit L-4
CITY OF FRIDLEY, MINNESOTA
FEDERAL GRANT INFORMATION
YEAR ENDED DECEMBER 31, 1986
-� Federal
Domestic
Federal Fund Administering Assistance
Source Agency Number Grant Name
U.S. Department Direct 21.300 Federal Revenue Sharing
Treasury
U.S. Department Anoka County 14.219 Community Development
Housing and Urban Block Grant
Development
U.S. Department Metro Council 14.156 Lower-Income Housing Assistance
. ■ Housing and Urban Housing and Program (Section 8)
Development Redevelopment
Authority
135
Exhibit L-5
CITY OF FRIDLEY, MINNESOTA
SCHEDULE OF ASSESSED VALUATION AND LONG-TERM DEBT
FOR THE TAX INCREMENT FINANCING DISTRICT
December 31, 1986
Redevelopment
District
Original Assessed Value $ 7,595,883
Current Assessed Value $ 16,628,105 '-
Captured Assessed Value -
retained by the Authority $ 9,032,222
Bonds Issued:
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 1982 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 $ (230,000)
Defeased (14,925,000)
Total amount redeemed (15,155,000)
Outstanding bonds at December 31, 1986 $13,935,000
136
Exhibit L-6
CITY OF FRIDLEY, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS
FOR THE TAX INCREMENT FINANCING DISTRICT
INCEPTION TO DECEMBER 31, 1986
Current Year Prior Years Total
Sources of Funds:
Bond proceeds $10,011,944 $20,793,523 $30,805,467
Tax increments received 867,372 1,792,000 2,659,372
Interest on invested funds 870,713 945,947 1,816,660
Real estate sales 120,043 260,428 380,471
Rental 52,150 112,175 164,325
Home Ownership revenue 10,125 10,125
Other 10,850 285,657 296,507
Total sources of funds 11,933,072 24,199,855 36,132,927
Uses of Funds:
Land acquisition 981,484 8,122,418 9,103,902
Site improvements or
preparation costs 631,997 98,500 730,497
Installation of public
utilities and improvements 7,917 7,917
Bond payments
Principal 180,000 135,000 315,000
Interest and fiscal charges 791,111 1,087,786 1,878,897
Defeasance of debt 11,550,000 11,550,000
Remittance to escrow agent 104,447 104,447
-Administrative costs 633,318 1,400,887 2,034,205
Other 8,507 41,019 49,526
Total uses of funds 14,880,864 10,893,527 25,774,391
District Balance $(2,947,792) $13,306,328 $10,358,536
137
r..
STATISTICAL SECTION
IMMO
a
OEM
i
OEM
Table 1
CITY OF FRIDLEY, MINNESOTA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1)
LAST TEN FISCAL YEARS
Fiscal General Public Civic Public Recreation, Debt
— Year Government Safety Center Works Naturalist Service Total
1977 $ 484,663 $1,239,730 $109,647 $ 928,742 $ 839,151 $ $3,601,933
1978 572,381 1,446,302 102,444 1,028,594 822,095 3,971,816
1979 581,800 1,495,493 103,387 1,056,758 909,317 38,561 4,185,316
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 1,792,566 2,576,847 180,839 1,886,888(2) 535,430(2) 1,086,405 8,058,975
Note
(1) Includes General, Special Revenue, Capital Projects (HRA Fund only) and Debt
Service Funds
(2) Parks Maintenance activity is now under Public Works
139
Table 2
CITY OF FRIDLEY, MINNESOTA
GENERAL REVENUES BY SOURCE (1)
LAST TEN FISCAL YEARS
Inter- Charges
General govern- For -.
Fiscal Property Licenses mental Current Miscellaneous Total
Year Tax & Permits Revenue Services Revenue Revenue
1977 $1,703,364 $270,409 $1,346,412 $ 99,755 $ 235,752 $3,655,692
1978 1,846,370 265,657 1,576,630 104,069 285,311 4,078,037
1979 1,948,751 303,639 1,646,918 103,267 400,317 4,402,892
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
..
Note
(1) Includes General, Special Revenue, Capital Projects (HRA Fund only) and Debt
Service Funds
..
140
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 Years' Taxes Ratio Outstanding
Tax levy During During During of Total Current and
Fiscal For Fiscal Fiscal Fiscal Fiscal Total Collections Delinquent
Year Period Period(l) Period Period Collections to Tax Levy Taxes
1977 $2,057,083 $2,033,169 98.84 $39,505 $2,072,674 1.0076:1 $ 53,865
1978 2,199,318 2,177, 318 99.00 48,922 2,226,240 1.0122:1 46,119
1979 2, 348,124 2,318,648 98.74 41,503 2,360,151 1.0051:1 41,316
1980 2,512,176 2,461,402 97. 98 46,345 2,507, 747 .9982:1 54,254
1981 2, 767, 955 2,502,610 90.41 49,166 2, 551, 776 .9219:1 283,600
1982 2,920,626 2,777,691 95.11 21,771 2, 799,462 .9585:1 153,574
1983 3,151,324 3,086,799 97.95 54,674 3,141,473 .9969:1 124,610
1984 3,152,952 3,049,773 96. 72 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
Note
(1) Includes Homestead Credit
141
wq
CITY OF FRIDLEY, MINNESOTA
ASSESSED AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Fiscal Year Payable 1977 1978 1979 1980
Assessment Year 1976 1977 1978 1979 ...
Population, fiscal year 31,940 33,450 32,644 30,228
Real property:
Estimated market value $405,285,288 $456,038,596 $474,610,022 $555,096,298
Assessor's limited market value $363,541,172 $408,865,261 $458,973,683 $522,308,032
Assessed value -
Homestead $ 19,607,606 $ 20,453,732 $ 21,633,558 $ 24,392,539
Excess and non-homestead 117,424,505 124,640,289 134,204,943 141,946,084
Less area wide net allocation (4,812,211) (6,271,738) (7 ,376 ,217) (8,858,508)
Less tax-increment value (954,050)
Assessed value (taxable) $132,219,900 $138,822,283 $148,462,284 $156,526,065 ....
Personal property:
Estimated market value $ 18,167,447 $ 19,340,803 $ 17,424,500 $ 17,899,900
Assessor's limited market value $ 16,296,200 $ 17,348,700 $ N/A (4) $ N/A (4)
Assessed value (taxable) $ 7,007 , 366 $ 7,459 ,941 $ 7,492,535 $ 7,696,957
Totals:
Estimated market value $423,452,735 $475, 379,399 $492,034,522 $572,996,198
Assessor's limited market value $379,837,372 $426 ,213,961 $458,973,683 $522,308,032
Assessed value (taxable) $139,227,266 $146,282,224 $155,954,819 $164,223,022
Per market value ratios
Assessor's limited market value .897:1* .897:1* .968:1 .943:1
Assessed value (taxable) .329:1 .308:1 .317:1 .287:1
Per capita valuations
Estimated market value $ 13,258 $ 14,212 $ 15,073 $ 18,956
Assessed value (taxable) $ 4,359 $ 4,373 $ 4,777 $ 5,433
Notes
(1) The Anoka County Auditor's Office determines assessed values on January 2 of each
year pursuant to State Statutes and determines Total Assessed Value (Taxable) . The
Total Assessed Value (Taxable) on January 2, 1985 upon which the 1986 levy was based was
$225,574,014.
142
Table 4
1981 1982 (3) 1983 1984 1985 1986
_ 1980 1981 1982 1983 1984 1985
30,200 29,920 29,810 29,750 29,440 29,423
$632,523,959 $723,016,622 $776,074,092 $802,180,000 $807,910,500 $839,392,000
$ N/A (2) $ N/A (2) $ N/A (2) $ N/A (2) N/A (2) N/A (2)
$ 59,013,036 $ 65,308 ,228 $ 94,445,737 $ 94,707,547 $ 91,923,166 $ 91,343,841
121,924,290 142,031,048 126,066,013 129,931,205 132,234,317 143,450,918
(10,022,598) (9,340,006) (13 ,120,471) (11,732,970) (11,693,200) (11,434,459)
(2,708,711) (2,892,948) (3,951,300) (2,765,895) (5,458,497) (9,032,222)
$168,206,017 $195,106,322 $203,439,979 $210,139,887 $207,005,786 $214,328,078
$ 18,731,800 $ 19,328,400 $ 19,741,300 $ 21,263,600 $ 21,534,300 $ 26,208,700
$ N/A (4) $ N/A (4) $ N/A (4) $ N/A (4) N/A (4) N/A (4)
$ 8,054, 674 $ 8,311,212 $ 8,488,759 $ 9,143,348 $ 9,259,749 $ 11,245,936
$651,255,759 $742,345,022 $795,815,392 $823,443,600 $829,444,800 $865,600,700
-� $ N/A (2) $ N/A (2) $ N/A (2) $ N/A (2) N/A (2) N/A (2)
$176,260,691 $203,417,534 $211, 928,738 $219,283,235 $216,265,535 $225,574,014
N/A (2) N/A (2) N/A (2) N/A (2) N/A (2) N/A (2)
— .271: 1 .274:1 .266:1 .266: 1 .261:1 .261: 1
$ 21,565 $ 24,811 $ 26,696 $ 27,679 $ 28, 174 $ 29,419
$ 5,836 $ 6,799 $ 7, 109 $ 7,371 $ 7, 346 $ 7,667
(2) In 1980, Limited Market Value was omitted as a consideration in determining
taxable value.
(3) Real property estimated market value includes $8 , 174, 200 of new value from
railroad operating property brought onto the tax roles.
(4) Beginning in Fiscal Year Payable 1979 , the Assessor' s value for Assessment
Year 1978 was discontinued and is no longer available.
–' *Source - State of Minnesota Department of Revenue
143
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF VALUATIONS AND LEVIES BY CLASSES OF PROPERTY
DECEMBER 31, 1986
Assessed
Valuation Assessed -�
Before Valuation Assessed
Contribution Contribution Value
Class of to Metro Tax to Metro Tax Received from
Property Pool Pool Metro Tax Pool
Commercial $ 41,464,888 $ (9,811,129)
Industrial 67,533,132 (16,946,496)
F. M. C. #85 6,416,245 (1,516,265) -�
Gas 1,242,915 (445,960)
Electric 3,586,776 (862,190)
Public utilities* 490,074 (148,654)
Vacant land, residential 1,221,800
Apartments 22,981,680 ..
Residential 101,103,185
Distribution (1) $18,296,235
Commercial $246,040,695 $(29,730,694) $18,296,235 --
Notes
*Real Estate and Machinery
(1) This represents the "assessed value" distributed to Fridley from
the metro tax pool.
The assessed value for the first six classes of property shown above has
been reduced for local taxable value to 87 . 92% of the actual assessed
value. This taxable value is multiplied by the applicable local mill
rates. The remaining 12 . 08% of assessed value is multiplied by the ..
Metro Mill Rate of 107.553 mills. This money goes into the Metro Pool.
The City of Fridley received $268,113 from this pool in 1986.
144
Table 5
Assessed
Valuation Dollars of
Allocated to Adjusted Percent Certified
Tax Increment Assessed of Total City Tax
Financing Value City Tax Levy
$ (849,029) $ 30,804,730 13.66 $ 441,611
50,586,636 22.43 725,134
4,899,980 2.17 70,153
796,955 0.35 11,315
2,724,586 1.21 39,118
341,420 0.15 4,849
(72,258) 1,149 ,542 0.51 16,488
(7,948,355) 15,033,325 6.66 215,310
(162,580) 100,940,605 44.75 1,446,712
18,296,235 8.11 262,187
$(9,032,222) $225,574,014 100.00 $3,232,877
The tax shown for Residential is the total amount
received by the City . Owners of Homestead
Residential properties do not pay this full amount.
The State pays up to $700 per homestead in credit.
An additional refund may be received by the taxpayer
from the State depending on income , age and amount
of real estate tax for their homestead property.
145
CITY OF FRIDLEY, MINNESOTA
SIGNIFICANT MINNESOTA TAX POLICIES
DECEMBER 31, 1986
GENERAL
All non-exempt property in Minnesota is subject to taxation by local taxing
districts. The tax levied on a property is determined by multiplying its
assessed value by the tax rate. The tax rate (mills) is determined by the
County Auditor, dividing each tax levy by the taxable assessed valuation.
Properties are physically reviewed by assessors at least once every four
years.
The Minnesota Department of Revenue analyzes sales of properties annually,
comparing sale 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 percentage to
arrive at assessed value. This percentage varies by class of property.
Residential homestead property. Part of the market value said to be
"homestead" ($64, 000 for taxes due in 1986) is assessed at 18% , and the
balance at 29%. The assessed value of a homestead residence with a market
value of $60 ,000 would be $10 , 800 for taxes collectible in 1986 (see
"Homestead Credit" note below) .
Residential non-homestead property of 1-2-or-3 units is assessed at 28% of its
market value . The assessed value of a non-homestead residence (rental
property) with a MV of $50,000 is $14,000. Apartments of 4 units or more are
assessed at 34% ($50,000 value x 34% _ $17,000) .
Industrial/commercial/utility property is assessed at 28% of the first $60,000
of estimated market value, and 43% of balance. Market value of utilities is
computed by the Minnesota Department of Revenue.
HOMESTEAD CREDIT Homestead taxes are reduced by a 54% credit (maximum $700) .
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
$40,000) homeowners or renters may receive State credits up to $1 , 825 -�
(combined homestead and income-adjusted credits) .
WR
146
•
CITY OF FRIDLEY, MINNESOTA
PROPERTY TAX RATES PER $1,000 OF ASSESSED VALUE AND CALCULATED TAX LEVIES
ALL OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Property Tax Rates
School School School School
District District District District
Fiscal City No. 11 No. 13 No. 14 No. 16* County -
Year (Mills) (Mills) (Mills) (Mills) (Mills) (Mills)
1977 14.78 58.40 47.26 54.65 63.62 22.21 -
1978 15.05 55.84 46.53 54.26 61.68 24.40
1979 15.06 47.71 45.04 47.17 62.25 24.29
1980 15.31 43.21 46.73 45.08 61.83 25.84
1981 15.72 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 26.088 -
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
*Vocational/Technical District No. 916 included in District No. 16 beginning in 1975. -
**Six Cities Watershed District included with the Special Districts beginning in 1985.
Inmq
Calculated Tax Levies ..
School School School School
Fiscal District District District District
Year City No. 11 No. 13 No. 14 No. 16* County .-
1977 2,057,083 360,242 1,499,855 3,863,402 1,948,613 3,092,238 -.
1978 2,199,318 355,565 1,568,135 3,987,358 2,017,736 3,569,286
1979 2,348,124 330,743 1,634,858 3,668,695 2,204,204 3,788,253
1980 2,512,176 319,712 1,786,183 3,606,461 2,395,401 4,235,650 -
1981 2,768,111 296,393 1,795,295 3,493,129 2,144,854 4,904,234
1982 2,920,793 447,988 2,383,069 4,412,574 3,130,401 5,332,248
1983 3,151,553 461,623 2,597,543 5,576,373 3,052,396 5,630,016
1984 3,153,251 563,791 2,960,066 6,228,287 3,310,710 5,728,438
1985 3,163,459 536,388 2,650,406 6,152,690 3,122,134 5,825,992
1986 3,223,064 576,032 2,894,115 6,402,200 3,555,419 6,451,056
*Vocational/Technical District #916 included in District No. 16 beginning in 1975. -
**Six Cities Watershed District included with the Special Districts beginning in 1985.
148
Table 6
Totals
Total School School School School
Special District District District District
Districts No. 11** No. 13 No. 14 No. 16*
(Mills) (Mills) (Mills) (Mills) (Mills)
- 3 .43 98.82 87.68 95.07 104.04
3.14 98.43 89.12 96.85 104.27
3. 35 90.41 87.74 89.87 104.95
- 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
5.099 99.480 97.257 106.445 107 .684
4.882 103.502 101.673 108.795 111.754
Net
Total Total Yearly Contribution Tax Total
- Special All Local Percentage To Metro Increment Tax
Districts Tax Levies Increase Tax Pool Districts Levies
454,078 13,275,511 10.97% 13,275,511
426 ,450 14,123,848 6.39% 14,123,848
470,367 14,445,244 2.28% 922,702 15,367,946
542,080 15,397,663 6.59% 1,083,986 85,221 16,566,870
718,810 16,120,826 4.70% 1,113,318 193,763 17,427,907
779,684 19,406,757 20.38% 925,052 304,517 20,636,326
- 924,841 21, 394, 345 10.24% 1,402,913 340,539 23,137,797
1,044,451 22,988,994 7.45% 1,209,389 311,160 24,509,543
1,073,929 22,524,998 2.02% 1,343,511 573,946 24,442,455
1,091,249 24,193,135 7.41% 1,298,052 573,946 26,065,133
149
Table 7
.
CITY OF FRIDLEY, MINNESOTA
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Total
Collec- Delin- Collec- Outstand- --
Current Current tions to quent tions to ing and
Assess- Assess- Amount Assess- Current Delinquent
Fiscal ments ments Due ments Total Levy Assess-
..,
Year Due Collected (Percent) Collected Collected (Percent) ments
1977 $918,918 $801,584 87.23 $168,821 $970,405 105.60 $655,073
1978 777,077 699,145 89.98 288,525 987,670 127.11 439,385
1979 678,501 606,763 89.43 134,352 741,115 109.23 379,149 w.
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 765,737 682,762 89.16 143,891 826,653 107.95 176,879
w.
150
CITY OF FRIDLEY, MINNESOTA
HISTORY OF CERTIFIED TAX LEVIES AND ACTUAL MILL RATES
LAST TEN FISCAL YEARS
1977 1978 1979 1980
Certified tax levies
General Fund $1,974,563 $2,114,917 $2,264,856 $2,428,376 '-
General Debt Service Funds 36,600 41,000 39,900 38,800
Capital Improvement Fund 45,920 43,401 43,368 45,000
Agency Fund
Total $2,057,083 $2,199,318 $2,348,124 $2,512,176
Actual mill rate
General Fund 14.18 14.47 14.52 14.795
General Debt Service Funds .27 .28 .26
Capital Improvement Fund .33 .30 .28 .237
Agency Fund
Total 14.78 15.05 15.06 15.306 ."
Notes
(1) Property values include net amount allocated pursuant to Laws of
1971, Extra Session, Chapter 23, from Area-Wide "Pool" .
Beginning with taxes collectable in 1975, the value on which the City of Fridley's
mill rate is calculated, is not the City's assessed value but a taxable value based
on the City of Fridley's assessed value and the net addition or reduction from
the Metropolitan Tax Pool.
152
Table 8
1981 1982 1983 1984 1985 1986
$2,684,615 $2,838,504 $3,070,254 $3,071,882 $3,083,270 $3,141,859
38,570 37,352 36,300 36,300 35,175 35,628
44,770 44,770 44,770 44,770 44,982 45,521
14,898 9,869
$2,767,955 $2,920,626 $3,151,324 $3,152,952 $3,178,325 $3,232,877
15.248 13.877 14.525 13.970 14.283 13.895
.220 .183 .172 .166 .163 .158
.254 .218 .211 .204 .208 .203
.240 .074
15.722 14.278 14.908 14.340 14.894 14.330
153
CITY OF FRIDLEY, MINNESOTA
RATIO OF NET GENERAL BONDED DEBT
TO ASSESSED VALUES AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
Deduct
Total City Debt Special
Assessed Service Fund Assessment,
Fiscal Value Gross Monies Revenue and
Year Population (Taxable) Bonded Debt Available HRA Bonds
1977 31,940 $139,227,266 $ 6,775,000 $50,815 $ 6,490,000 --
1978 33,450 146,282,224 6,385,000 60,071 6,125,000
1979 32,664 155,954,819 6,545,000 64,383 6,315,000
1980 30,228 164,223,022 6,105,000 69,480 5,905,000
1981 30,200 176,260,691 8,954,000 76,953 8,784,000
1982 29,920 203,417,534 9,160,000 82,255 9,020,000 .,
1983 29,810 211,928,738 8,285,000 84,240 8,180,000
1984 29,750 219,283,235 7,470,000 86,709 7,400,000 ..
1985 29,440 216,265,535 22,125,000 86,117 22,090,000
1986 29,423 225,574,014 19,385,000 91,510 19,385,000
154
Table 9
Percent of
_ Net Bonded
Debt to
Total
Assessed Net General
-- Net General Value Bonded Debt
Bonded Debt (Taxable) Per Capita
$ 234,185 .17% $ 7.33
199,929 .14% 5.98
165,617 .11% 5.07
130,520 .08% 4.32
93,047 .05% 3.08
_ 57,745 .03% 1.93
20,760 .01% .70
-0- - -
-0- - -
-0- - -
155
Table 10
CITY OF FRIDLEY, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
DECEMBER 31, 1986
Assessed Value $225,574,014
(A) Debt Limit 7.33% of Assessed Value $16,534,575
Amount of Debt Applicable to Debt Limit: ..-
Total Bonded Debt $19,385,000
(B) Deductions:
Debt Service Fund fund balance $ 91,510
Tax Increment Redevelopment Bonds 10,045,000
Special Assessment Bonds 5,380,000
Water Revenue and Improvement Bonds 70,000 -�
Tax Increment Revenue Bonds 3,890,000 19,476,510
Total Amount of Debt Applicable to Debt Limit -0-
Debt Margin
$16,534,575
Notes
(A) M.S.A. Section 475.53 (see following page)
(B) M.S.A. Section 475.51 (see following page)
156
CITY OF FRIDLEY, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED)
YEAR ENDED DECEMBER 31, 1986
Note (A) :
M.S.A. Section 475.53 et seq. Limit on Net Debt
.-. "Subdivision 1. Generally, except as otherwise provided in section 475.51,
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 7 . 33 percent of the
assessed value. "
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
any combination thereof or for any other public convenience from which a
revenue is or may be derived.
(6) Debt service loans and capital loans made to a school district under the
provisions of sections 124.42 and 124.43.
(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) 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. "
157
Table 11
CITY OF FRIDLEY, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING
BONDED DEBT AND COMPARATIVE DEBT RATIOS
DECEMBER 31, 1986
% of
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 $ 19,385,000 $ 2,153,097 $ 17,231,903 100.00 $17,231,903
Overlapping debt: -�
School Districts
No. 11 $ 26,535,000 $ 1,977,316 $ 24,557,684 1.58 $ 388,011
No. 13 640,000 422,931 217,069 32.45 70,439
No. 14 529,000 958,452 -0- 100.00 -0-
No. 16 9,442,308 3,684,389 5,757,919 41.71 2,401,628
Metro Transit 24,250,000 4,904,000 19,346,000 1.54 297,928
Metro Council 296,075,000 60,377,400 235,697,600 1.43 3,370,476
Anoka County 8,770,000 119,000 8,651,000 20.11 1,739,716
Vocational/Technical
District No. 916 2,480,000 333,478 2,146,522 2.27 48,726
Overlapping debt 368,721,308 72,776,966 296,373,794 8,316,924
Total direct and
overlapping debt $388,106,308 $74,930,063 $313,605,697 $25,548,827
158
Table 12
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 Expenditures
1977 $ 25,000 $ 10,247 $ 35,247 $ 3,601,933 .0098:1
1978 25,000 9,422 34,422 3,971,816 .0087:1
1979 30,000 8,500 38,500 4,280,363 .0090:1
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 7,193,387 .0324:1
1983 35,000 290,707 325,707 6,204,001 .0525:1
1984 85,000 301,140 386,140 6,688,262 .0577:1
1985 120,000 234,029 354,029 12,354,397 .0287:1
1986 215,000 791,771 1,006,771 10,066,950 .1000:1
159
Table 13
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 Service Principal Interest Total Coverage
1977 $1,276,196 $1,139,152 $ 137,044 $ 96,607 $35,040 $131,647 1.04
1978 1,404,459 1,299,988 104,471 101,724 30,486 132,210 0.79 "
1979 1,394,580 1,237,504 157,076 101,724 25,781 127,505 1.23
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 .78
1986 2,434,100 2,522,048 (87,948) 50,000 3,400 53,400 -
160
Table 14
—' CITY OF FRIDLEY, MINNESOTA
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Annual
Average
Fiscal Per Capita Median School Unemployment
Year Population (1) Income (3) Age (4) Enrollment (3) Rate (5) (6)
1977 31,940 6,721 25.4 7,750 4.0
1978 33,450 6,980 25.9 7,119 2.7
1979 32,644 7,239 26.2 6,666 2.8
1980 30,228 (2) 8,654 (2) 27.4 (2) 6,331 4.4 (2)
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
Sources:
(1) Estimated by Metropolitan Council
(2) Current Population Report - Bureau of the Census
(3) Estimated by the City of Fridley Planning Department - excludes
Grace Parochial High School as it is not supported by property tax dollars
(4) Sales Market Management Survey of Buying Power (Anoka County)
(5) Minnesota Department of Economic Security - Twin Cities Labor Market
Information Center
(6) Beginning in 1983, Unemployment Rate as reported is area wide for the
County of Anoka rather than for the City of Fridley only
161
Table 15
CITY OF FRIDLEY, MINNESOTA
CONSTRUCTION, BANK DEPOSITS AND PROPERTY VALUE
LAST TEN FISCAL YEARS
Commercial Residential
Construction Construction Estimated Market Value
Number Number Bank (1)
Fiscal of of Deposits Taxable Non-
Year Units Value Units Value (Thousands) Property Taxable (2) Total
1977 58 $ 5,596,312 458 $7,755,824 $16,585 $423,452,735 $ 63,489,810 $486,942,545
1978 51 5,247,268 385 4,673,528 18,033 475,379,399 63,489,810 538,869,209
1979 47 7,755,397 404 4,107,660 17,885 492,034,522 63,489,810 555,524,332
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 22,875 742,345,022 110,559,039 852,904,061
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 27,025 865,600,700 109,749,739 975,350,439
Source:
(1) Fridley State Bank, Annual Financial Statement
(2) Non-taxable property is reevaluated by the county assessors every six years
162
Table 16
CITY OF FRIDLEY, MINNESOTA
PRINCIPAL TAXPAYERS
DECEMBER 31, 1986
Fiscal Year 1986
Percent
1985* of Total
Assessed Assessed
Rank Taxpayer Type of Business Valuation Valuation**
1. Medtronics, Inc. Electro-medical devices $11,342,097 4.61
2. Onan Corporation Portable electric generators 7,407,640 3.01
3. Target Stores Discount store and warehouse 5,249,427 2.13
4. LaMaur, Inc. Cosmetics 3,898,582 1.58
5. Maurice Fillister Georgetown apartments 3,009,136 1.22
6. Holiday Plus Discount department store 2,224,463 0.90
7. FMC Corporation Naval ordinance 2,188,945 0.89
8. Carter-Day Air control equipment 2,172,261 0.88
9. Burlington N. Railroad Operating property 2,169,565 0.88
10. Land O'Lakes Coop. Warehousing, oil blending 2,076,500 0.84
Total $41,738,616 16.94
Notes
*The 1985 Assessed Value was used to determine the Taxable Value on January 2, 1985,
upon which the 1986 levy was based.
**Before contribution to Metropolitan Tax Pool.
169
CITY OF FRIDLEY, MINNESOTA
INSURANCE COVERAGE
DECEMBER 31, 1986
All risk perils, 100% coinsurance
Buildings and contents
Blanket, agreed amount endorsement,
replacement cost coverage $ 11,138,889 r..
Contractor's equipment 540,916
Miscellaneous equipment 187,891
Voting machines 10,000
Neon and outdoor signs 13,818
Boiler and machinery 500,000
Comprehensive general liability
Bodily injury
Each occurence 600,000
Aggregate 600,000
Property damage
Each occurence 600,000
Aggregate 600,000
Automobile liability
Bodily injury and property damage 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 common cause 1,000,000
Property damage
Each common cause 1,000,000
Loss of means of support 1,000,000
Police professional liability
Combined single limit per loss
Personal injury, bodily injury, property —
damage, punitive damages 1,000,000
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
Public officials' liability 600,000 —
Employee benefits liability 600,000
Workers compensation Statutory
PRINCIPAL OFFICIALS' BONDS
DECEMBER 31, 1986
Nasim M. Qureshi City Manager $50,000 -^
Shirley A. Haapala City Clerk 1,000
Richard D. Pribyl Treasurer 50,000
HRA 50,000 —
All employees are covered by a blanket of faithful performance bond of $100,000.
184
CITY OF FRIDLEY, MINNESOTA
CITY CAPITAL IMPROVEMENT FINANCING POLICY
DECEMBER 31, 1986
The policy of the City of Fridley regarding financing of major capital
improvements is as follows:
Street, Curb and Gutter, Sidewalk and Storm Sewer Improvements
It is the policy of the City to assess 100% of the cost of street surfacing,
curb and gutter improvements and storm sewer improvements against benefited
properties, less aid for construction received from the State of Minnesota.
Properties owned by the City, the school districts , or other tax exempt
organizations are treated in the same manner and assessed at the same rate as
taxable properties.
Water and Sewer Improvements
Water and sewer lateral improvements are 100% assessed against benefited
properties. Properties owned by tax exempt organizations are treated the same
as taxable properties. The water and sewer main system has been substantially
assessed against benefited properties. An exception to the above policy has
been the cost of looping certain water system main lines which benefited no
particular properties. This unassessed portion of the improvement cost is
being financed by the Public Utility Fund.
Wells, Reservoirs, Pumping Stations, Etc.
These improvements have been financed from the income of the Public Utility
Fund.
Acquisition of Park Land, Civic Center, Etc.
It is the policy of the City to finance small park capital improvements out of
the current General Fund operating budget. It is the policy of the City to
finance major park capital improvements, such as the purchase of large parcels
of land, with general obligation bonds. The City completed debt service on a
1965 bond issue of $500 , 000 during 1986 . There are no other debts
outstanding.
_, Other Capital Improvements
It is the policy of the City to finance capital improvements such as fire
trucks and public works equipment, etc . from the current General Fund
operating budget. In order to stop fluctuations in the amount budgeted
annually for such items, the City started a Capital Improvement Fund in 1976 .
The total fund balance in this fund on December 31, 1986 was $1,797, 232 . The
purpose of the fund is to finance capital outlay items normally financed
through the General Fund. In 1983, the Capital Improvements Fund made a loan
of $125 , 000 to the Management Information Services Fund to be used for
financing the acquisition of computer hardware.
Revenue Sharing
The General Fund is used as the vehicle for budgeting and expenditure of
Revenue Sharing monies. In 1985, 19% of Revenue Sharing funds were used for
capital outlay items, 28% for other expenses and 53% for personal services.
185
CITY OF FRIDLEY, MINNESOTA
MISCELLANEOUS STATISTICAL INFORMATION
DECEMBER 31, 1986
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 - City Election November 4, 1986
Registered Voters 17,891
Number of votes cast 9,607
Percent (%) of registered voters voting 53%
Population
1950 Federal Census 3,796 --
1960 Federal Census 15,182
1965 Federal Census 24,789
1970 Federal Census 29,233
1971 Estimated by Metropolitan Council 29,636
1972 Estimated by Metropolitan Council 30,240
1973 Estimated by Metropolitan Council 31,143
1974 Estimated by Metropolitan Council 32,542
1975 Estimated by Metropolitan Council 32,486
1976 Estimated by Metropolitan Council 31,570
1977 Estimated by Metropolitan Council 31,940 .,
1978 Estimated by Metropolitan Council 33,450
1979 Estimated by Metropolitan Council 32,644
1980 Federal Census 30,228
1981 Estimated by Metropolitan Council 30,200
1982 Estimated by Metropolitan Council 29,920
1983 Estimated by Metropolitan Council 29,810
1984 Estimated by Metropolitan Council 29,750 ^
1985 Estimated by Metropolitan Council 29,440
1986 Estimated by Metropolitan Council 29,423
Permanent Employees -- As of December 31 Number
1976 129*
1977 148* —
1978 141*
1979 122
1980 126
1981 129
1982 123
1983 119
1984 119
1985 125
1986
*Includes CETA employees
166
CITY OF FRIDLEY, MINNESOTA
MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED)
DECEMBER 31, 1986
Fire protection
Number of stations 1
Volunteer Firefighters 30
Full-time Firefighters 5
Fire rating Class 4
Police protection
Number of stations 1
Number of sworn officers 32
Number of street lights 935
Number of traffic signal installations 32
Number of other special signal installations 1
Number of civil defense warning sirens 8
Miles of streets and sidewalks (including State and County)
— City streets 123.99
Trunk highways 10.80
County roads 14.56
Sidewalks 10.98
Miles of sewer
Storm 38.77
Sanitary 100.49
Miles of water mains 105.90
Municipal water system source
Primary source City of Fridley Water Plant
(13 wells)--Capacity of 15
million gallons per day
Secondary source City of Minneapolis
• • (Mississippi River)--35
million gallons per day
Number of water connections December 31, 1986 8,156 Connections
Daily average consumption (gallons) 4.4 million gallons
Elevated storage capacity .5 million gallons
Water storage reservoirs 4.5 million gallons
�— Number of fire hydrants 1,019
Municipal Sewer System
Disposal--through Metropolitan Waste Control
Commission
Number of connections December 31, 1986 8,256
Average daily flow (includes infiltration/inflow) 3.15 million gallons
167
CITY OF FRIDLEY, MINNESOTA
MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED)
DECEMBER 31, 1986
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
—
..
168
-- CITY OF FRIDLEY, MINNESOTA
GENERAL INFORMATION
DECEMBER 31, 1986
Location - Transportation
The City of Fridley, with a total land area of eleven square miles and an
estimated population of 29 ,423 , 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 , Burlington Northern Railroad and Minnesota
Transfer Railway. 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 151 certified personnel in the education of about 2 , 703
students. Grace Parochial High School has an enrollment of 921 . 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 , 957 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.
emi
169
CITY OF FRIDLEY, MINNESOTA
GENERAL INFORMATION (CONTINUED)
DECEMBER 31, 1986
Larger Employers
Larger employers in the City of Fridley include:
Full-Time
Employer Product or Service Employees
FMC Corporation Pumps and naval ordinance 3,231
Onan Corporation Portable generators, electronic 1,500
equipment
Medtronics, Inc. Electro-medical devices and hdqtrs. 1,360
Burlington Northern Railroad Northtown Yard 1,028
Unity Hospital Medical services 500
Kurt Manufacturing Machine parts 438 .�
LaMaur, Inc. Cosmetics 430
Target Stores, Warehouse Discount department store 430
Minco Products, Inc. Electronic devices 419
Midwest Printing Printing TV Guide 272
Totino's Finer Foods Frozen foods 268
Independent School District #14 Fridley School District 230
Safetran Systems Corporation Railroad accessories 212
Longview Fiber Company Packaging supplies 143
Strite-Anderson Manufacturing Aluminum die castings 140
City of Fridley Governmental Entity 125
Barry Blower Marly Corporation Air moving devices 100
170