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1980 CAFR =VP Z.Z.Z.Z=IONOM Om& zrN I AN%Owe=FM& zcza NM/%%I 0.Z.7 ■ &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& LIF.V.N.W=M eeeNeNNO0 AW 00.N ••1:27::= .............................................................. f•Na•NOIN.0•111 &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& 171657,2E-7 ARFARZONSOZ-76 Alum= drZE,:b7r7gEr:SthES'igt7 102:2:77,427 aiErZeralEiEFEE-765.7 ARZE-WiEf .ESCI:ZIASIZEIL7-7:1" Acerayan---: ....... aSSEEF-zrizra3555•7= fbEigta:g dia7:71E:*":"="1Z/1 =WEI/ZZAR7 Zer. .E4717:Z117 wzri,. TA: arrIv. "1 ES-Z-715:7 1,;124,MY ............ Irthres- ............. .... 4 sass a.aa.aa asasassasasasa flea ......................... ................... t. sassassasasa "" a_s ses a „p, ......................................... ..................... ...................... , ' 1.11111==.17.7.711 r ................... ............ ......s ASSESZ-7:7 tr= CITY OF FRIDLEY MINNESOTA HE 0 I DILL, HER nRE „r Gd11 11 I' FOR THE YEAR ENDED DECEMBER 31, 1980 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT DECEMBER 31, 1980 Prepared by: r Department of Finance Sidney C. Inman Director of Central Services Richard D. Pribyl Finance Officer AMMO '' u4514 yid '- 17 CITY OF FRIDLEY, MINNESOTA I--- C\C1 \IN' \ \/ COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31 , 1980 TABLE OF CONTENTS INTRODUCTORY SECTION EXHIBIT PAGE List of Elected and Appointed Officials 1 Organizational Structure 2 -; Chief Executive Officer's Letter of Transmittal 5 FINANCIAL SECTION Accou t. II ' ! , ' • 21 Combined Financial Statements - Overview ( "Liftable" General Purpose Financial Statements) ,, \ bined Balance Sheet - All Fund Types and _ - Account Groups ik-13Q1 A-1 24 Co fined Statement of Revenues, Expenditures _ -y nd Changes in Fund Balances - All Governmental and Types and Expendable Trust Funds /455A A-2 28 C• " bi, -d Statement of Revenues, Expenditures f" ' w; i s Changes in Fund Balances - Budget and 'c ual-General, and Special Revenue Fund Types Ik 3 7A- A-3 30 \Co • Statement of Revenues, Expenses, and 2,, a es in Retaining Earnings - All Proprietory Fund Types -i 7 7 A A-4 32 fined Statement of Changes in Financial Position - Al Proprietory Fund Types /4_1 c,) a- A-5 33 - m 1 Notes to Financial Statements 1494 1 15 114 34 Financial Statements of Individual Funds: General Fund Statements: 1 Vompara 've Balance Sheet / -q5gjq B-1 51 Revenue,lir Changes undn Expenditures Balance - 'n udget and Actual /4/361 B-2 52 S e ent of Revenues and Other Financing So ces - Budget and Actual B-3 53 CITY OF FRIDLEY, MINNESOTA — COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31 , 1980 — TABLE OF CONTENTS (CONTINUED ) EXHIBIT PAGE Statement of Expenditures and Other Financing — Uses - Budget and Actual B-4 55 Special alai Revenue Funds Statements: _ ` ombining Balance Sheet /ilccagt C-1 60 .4mbini ng Statement of Revenues, Expenditures, — and Changes in Fund Balances / km-7 1 C-2 62 Municpal State Aid Fund: Comparative Balance Sheet /4-LN A C-3 64 ' ,tatement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual /q-360" C-4 65 Revenue Sharing Fund: comparative Balance Sheet /q445 A C-5 66 ‘/tatement of Revenues, Expenditures, and VV Changes in Fund Balance - Budget and Actual lq< 04 C-6 67 Selective Traffic Enforcement Program (STEP) Fund: Comparative Balance Sheet / 41144/ K-:- C-7 68 —� Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual /114/5 /4 C-8 69 Teen Center Fund: Comparative Balance Sheet / `� / 7 /=1 C-9 70 Statement of Revenues, Expenditures, and -j`L,, Changes in Fund Balance - Budget and Actual ill`n i4 C-10 71 Community Development Fund: Comparative Balance Sheet /&/&/q A C-11 72 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual /1"/50A C-12 73 0 — CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT — YEAR ENDED DECEMBER 31, 1980 TABLE OF CONTENTS (CONTINUED ) EXHIBIT PAGE — Home Ownership Fund: domparative Balance Sheet /445 / it C-13 74 Stateme Revenues, Expenditures and Changes Fund Balance - Budget and Actual / 1JcA C-14 75 — / Debt Service' Fund Statements: 1omparative Balance Sheet /3g 7A D-1 77 tement of Revenues, Expenditures and Changes in Fund Balance /45q A D-2 78 Cap 'tal Projects Fund Statements: ombining Balance Sheet /I/L/C / E-1 80 Obining Statement of Revenues, Expenditures and Changes in Fund Balances /463 A E-2 82 Special Assessment Funds Statements: Vmbining Balance Sheet / 45941 F-1 87 4nbining Statement of Revenues, Expenditures, and Changes in Fund Balance / ,-,M(.0 4 F-2 88 Enterprise Fund Statements: C nbining Balance Sheet /t/j/ g G-1 89 Coining Statement of Revenues, Expenses aiU Changes in Retained Earnings P/701 G-2 90 Vbining Statement of Changes in /4/65n Financial Position G-3 91 Liquor Fund: 'b ',arative Balance Sheet / V62 ) / G-4 92 C• i .arative Statement of Revenues, Expenses ` • . Changes in Retained Earnings /4g02/4 G-5 93 CITY OF FRIDLEY, MINNESOTA — COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31 , 1980 _ TABLE OF CONTENTS (CONTINUED) EXHIBIT PAGE 14' arative Statement of Changes in — Fi ncial Position /k/(c (L, /4 G-6 94 Rye Utility Fund: — jbparative Balance Sheet / 4/ 3 / G-7 96 4'' `` rative Statement of Revenues, Expenses an Changes in Retained Earnings NO/L4- G-8 98 sitrative Statement of Changes in Fi nc ial Position i is 7 iH G-9 99 WPtstenson Building Fund: — oarative Balance Sheet /q / 41 /4 G-10 100 Vom'(rat ive Statement of Revenues, Expenses, ani'Changes in Retained Earnings / / '-, " f T G-11 101 Com rat ive Statement of Changes in --Fi ancial Position /kr(L S f/ G-12 102 Internal Service Fund Statements: — ■tmparative Balance Sheet /'/ / /t H-1 103 Comparative Statement of Changes in Revenues, Expenses and Changes in Retained Earnings I 1 J H-2 104 Comparative Statement of Changes in ^ Financial Position 0-4L3 ?P H-3 105 Trust and Agency Fund Statements: — Balance Sheet /3 () I-1 107 4 parative Statement of Changes in Revenues, Expenses and Changes in Fund Balance l =Ci0 a I-2 108 General Fixed Asset Statements: -' Comparative Statement of General Fixed Assets L4-09 ik J-1 109 Schedule of General Fixed Assets - By Function and Activity 7)Q!,. fc 1 J-2 110 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31 , 1980 TABLE OF CONTENTS (CONTINUED ) EXHIBIT PAGE Schedule of Changes in General Fixed Assets - By Function and Activity /.-/3/ A J-3 112 General Long-Term Debt Statements: / Comparative Statement of General Long-Term Debt /'1c27 A K-1 113 TABLE PAGE — STATISTICAL SECTION General Governmental Expenditures by Function - Last Ten Fiscal Years ' F -' 1 115 General Revenues By Source - Last Ten Fiscal Years 330g 4 /S`- 2 116 — Property Tax Levies and Collections - Last Ten Fiscal Years 3 117 Assessed and Estimated Market Value of All Taxable Property - Last Ten Fiscal Years 53954 4 118 Statement of Valuations and Levies By Classes o 33-71i rS 4 of Property 5 120 Significant Minnesota Tax Pol icies 13S% 122 Property Tax Rates Per $1,000 of Assessed Value a and Tax Levies - All Overlapping Governments - oto 1 Last Ten Fiscal Years 124 Special Assessment Levies and Collections - Last b 3 (3 9 4 Ten Fiscal Years 7 126 History of Tax Levies and Mill Rates - Last Ten Fiscal Years 8 128 Ratio of Net Bonged Debt to Assessed Value and ' 1 y ( Net Debt Per Capita - Last Ten Fiscal Years 9 130 Computation of Legal Debt Margin O31/ A _IA 0317— 10 132 Computation of Direct and Overlapping Bonded Debt and Comparative Debt Ratios 03 ( 11 134 CITY OF FRIDLEY, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1980 — TABLE OF CONTENTS (CONTINUED ) TABLE PAGE Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Government Expenditures - Last Ten Fiscal Years 0114 12 135 — Revenue Bond Coverage - Last Ten Fiscal Years ILI -7 13 136 Insurance Coverage n--5(10 137 City Capital Improvement Financing Policy 138 Miscellaneous Statistical Information 139 General Information 142 — INTRODUCTORY SECTION I CITY OF FRIDLEY, MINNESOTA ELECTED AND APPOINTED OFFICIALS .... DECEMBER 31, 1980 "- ELECTED OFFICIALS Term of office expires January Elected Mayor - William J. Nee 1981 Counci 1 Robert L. Barnette, Councilmember-at-Large 1981 Cheryl Lee Moses, Ward I 1982 — Dennis L. Schneider, Ward II 1983 Edward J. Fitzpatrick, Ward III 1982 Effective January 1980 Mayor - William J. Nee 1984 Counci 1 Robert L. Barnette, Councilmember-at-Large 1984 Cheryl Lee Moses, Ward I 1982 Dennis L. Schneider, Ward II 1983 Edward J. Fitzpatrick, Ward III 1982 APPOINTED OFFICIALS Appointed City Manager - Nasim M. Qureshi Attorney - Virgil C. Herrick Department Heads Acting Finance Director - Nasim M. Qureshi — Acting City Clerk - Nasim M. Qureshi Acting City Treasurer - Sidney C. Inman Central Services Director - Sidney C. Inman Public Safety Director - James P. Hill Parks and Recreation Director - Charles A. Boudreau Fire Chief - Robert D. Aldrich Public Works Director - John Flora Division Heads City Assessor - Mervin Herrman Liquor Stores Manager - Robert L. McGuire Public Works Superintendent - Ralph S. Volkman Chief Building Official - Darrel G. Clark Civil Defense Director - James P. Hill City Planner - Jerrold Boardman 1 City of Fridley Minnesota CITY ADMINISTRATIVE CITY MANAGER Personnel1Officer/Admin. Asst. Management Analyst City Manager's Secretary Economic Dev. Asst. Clerk Typist PARKS AND -' PUBLIC WORKS (39) RECREATION (13) Public Works Director Parks and Recreation Director Operations Analyst Parks I& Rec. Public Works Secretary Secretary Naturalist/Resource Engineering Div. (4) Code EnforJement Division (4) Coordinator Asst. P.Wks. Director Chief Building Official Interpretive Spec. Engineering Tech. Environmental Officer Recreation Supv. Eng. Aide/Admin. Plumbing Inspector Eng. Aide/Inspection Clerk/Secretary Program Supv. Foreman (7) Planning Division (3) City Planner Senior Parkkeeper 2 Opr. d Maint. Spec. Associate Planner 3 Opr. & Maint. Persons Clerk/Secretary • Public Works Maintenance Division Supt. of Public Works (25) Clerk/Secretary Street Foreman (13) Water Foreman (5) Sewer Foreman (5) Sr. Steet Operator Sr. Water Operator 2 Sr. Sewer Operators 3 Heavy Equip. Opr. 2 Opr. & Maint. Spec. 2 Opr. & Maint. Persons Opr. & Maint. Spec. Opr. & Maint. Person 4 Opr. & Maint. Persons Chief Mechanic Mechanic Opr & Maint. Spec. 2 ORGANIZATIONAL STRUCTURE (129) Director Central Services/Clerk Treasurer General Accountant Sr.Util 'Billg Clerk Purchasing Agent Finance Officer Payb/Data Proc Clk Utility Billg Clerk Clerk-Purchasing Acctg Clk-Liquor Sr. Assess. Clerk Record Spec/Dpt.C.Clk Word Processing Opr. Custodian Receptionist/Lic.Clk. Cashier PUBLIC SAFETY (42) FIRE (6) Assistant City Manager/ Public Safet Director Fire Chief (C.D.Dir.) Police Secretary Deputy Fire Chief Captain 2 Firefighters Clerk Typist II (C.D.) Deputy P.S.D. Lieutenant 3 Sergeants 3 Corporals 23 Police Officers 1 Neighborhood Serv. Coord. 4 Police Technicians 4 Office Assistants Liquor Division Property Tax Division Liquor Store Manager (4) Assessor (4) Asst. Liquor Store Mgr. 2 Appraisers 2 Liquor Store Clerk Tax Assess. Clerk * Human Services Asst. Fully funded through federal and state funds (--)= Number of full time employees 3 _/Air CITY OF FRIDLEY er 8431 UNIVERSITY AVENUE N.E., FRIDLEY, MINNESOTA 55432 TELEPHONE ( 812)571-3450 et June 30, 1981 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 , 1980, is submitted herewith: The organization, form, and contents of this report were prepared in accordance with standards prescribed by the Municipal Finance Officers Association of the United States and Canada, the American Institute of Certified Public Accountants, the National Council on Governmental Accounting, and the Minnesota State Auditors Office. The format for this report has been modified to incorporate changes recommended by the National Council on Governmental Accounting in Statement 1 and 2 of the Governmental Accounting, Auditing, and Financial Reporting Principles which are effective for fiscal years ending after June 30, 1980. — The report was prepared by the City's Finance Staff and consists of three 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 accountant's opinion, the combined financial statements, notes to the financial statements, the combining and individual fund statements, and account group statements. Section III is the statistical section which includes the previous year's financial and non-financial data. 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. 5 ACCOUNTING SYSTEM AND BUDGETORY CONTROL The accounting system provides for a complete self-balancing account group for each fund of the City. Accounting records are maintained on the modified If accrual basis for the governmental type funds and the trust and agency fund and the accrual basis of accounting is utilized for the proprietary type funds, as defined in the notes to the financial statements. II In developing and improving the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting 1 controls are designed to provide reasonable, but not absolete, asssurance 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 catagory level . Budget adjustments between City divisions are made upon 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) adequate funds have been appropriated, 2) the expenditure is necessary, and 3) funds are available. THE CITY AND IT' S SERVICES The funds included in this comprehensive annual financial report are controlled by or dependent on the City of Fridley. Determination of "controlled by or dependent on" is based on criteria developed by the Federal Bureau of the Census. The criteria deal with existence as an organized entity, governmental character, and substantial autonomy. Based on these criteria the various funds and account groups, which are all the fund and account groups of the City shown in the table of contents, are included in this report. 6 —" — 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. DEBT ADMINISTRATION Net bonded debt per capita, and the percentages of the net debt to assessed — value and to market value are useful indicators of the City's debt position. Debt statistics for the City as of December 31, 1980 are as follows: Percent of Percent of Debt per Amount Assessed Value Market Value Capita Net direct debt $ 833,758 0.473 .128 27.58 — Net direct debt is based on Fridley's outstanding indebtedness less cash and investments on hand. _ On April 14, 1980, $1,755,000 of General Obligation Improvement Bonds were sold at a net interest rate of 7.75%. On August 1, 1980, $265,000 of temporary improvement bonds we sold at a interest rate of 8%. During 1980, $2,460,000 of Bonds were retired leaving the total outstanding indebtedness for the City on December 31, 1981 at $6,105,000. Below is a table of bonds issued since January 1, 1960. — Remaining Date of Years Interest Issue Amount of Issue Rate 1981 $ 265,000 3 8.00% 1980 1,755,000 15 7.25 - 8.50% 1977 875,000 8 3.10 - 4.90% 1976 850,000 9 3.75 - 6.00% 1975 332,500 8 6.00% -. 1975 47,500 1 6.00% 1972 900,000 13 3.80 - 5.30% 1967 210,000 7 4.20 - 4.50% __ 1965 145,000 5 3.20 - 3.50% 1965 200,000 5 3.20 - 3.50% 1965 370,000 7 3.20 - 3.50% 1963 70,000 2 3.20 - 3.80% 1962 10,000 1 3.10 - 3.80% 1960 75,000 1 4.00 - 4.50% $6,105,000 7 The City's bonds continue to have the same rating which they have carried since May 16, 1977. Moody's Investor Service City's Bonds Aa As of December 31 , 1980, the City had issued $11,700,000 in Industrial Revenue Bonds which are permitted under Minnesota Statutes, Chapter 474. Listed below are the bond issues: 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 06/02/80 700,000 G.T.A. 10/20/80 6,000,000 $11,700,000 CASH MANAGEMENT All temporary cash surpluses during the year are invested in various securities which State statues permit. Investment yields ranged from 6.25% to 18.0% during the year. The 1980 earnings were distributed to the following fund types: General $ 291 ,574 Special Revenue 100,572 Debt Service 3,858 ., Capital Projects 36,532 Special Assessments 521,190 Enterprise 294,704 Expendable Trust 1,483 $1,249,913 The following is a history of earnings by year: Year Earnings 1979 $ 871,757 1980 1,249,913 8 LEVY LIMITATIONS Minnesota Levy Limitation Law was adopted in 1972 and in general has placed a limitation on the amount of property tax a City can levy. The amount of increase is limited to 6% per capita per year. Since inception, various -" amendments to the law have been enacted but the basic principle has remained the same. The following table summarizes the City's compliance with the law for the years 1980, 1979, 1978 and 1977. Shown by Year Collectible 1980 1979 1978 1977 Authorized levy $2,301,446 $1,993,192 $1,869,304 $1 ,756,263 Base Adjustment 82,946 294,889 Plus allowable special levies 442,060 328,580 339,266 398,149 Total allowable levy 2,826,452 2,616,661 2,208,570 2,154,412 Actual levy (2,512,176) (2,348,124) (2,199,318) (2,057,083) Excess not used $ 314,276 $ 268,537 $ 9,252 $ 97,329 The City is operating within the authorized levy limitation. For taxes collectible in the year 1980, the City was $314,276 under the levy limitation. FISCAL DISPARITIES The State Legislature enacted a "Fiscal Disparity Law" in 1971 which was not implemented until 1975 due to a constitutional challenge. The law provides for the "pooling" of 40% of all new commercial and industrial property valuations in the seven-county metropolitan area. In turn, valuation from this "pool" is to _. be redistributed to taxing jurisdictions according to specific criteria. Although it is impossible to determine the future impact of the "Fiscal Disparity Law' on the City of Fridley, the law had the effect of reducing the City's taxable valuation by $8,500,000 for taxes collectible in 1980. — TAX INCREMENT DISTRICT -. The City Council took action on May 7, 1979 to form a Tax Increment District. The Fridley Housing and Redevelopment Authority is responsible for administering the Tax Increment project . The project consists of the planned redevelopment of properties located near the center of the City and near the Fridley Civic Center. The creation of the Tax Increment District has the effect of lowering the assessed valuation of the City that can be used for other purposes by $954,050 for taxes collectible in 1980 At the present time, the Housing and Redevelopment Authority is preparing final plans for the project. 9 GENERAL FUND The General Fund accounts for all financial transactions not properly accounted for in any other fund. Revenues (including transfers) of the General Fund totaled $5,216,683, an increase of $396,790 from 1979. Also expenditures (including transfers) for the General Fund totaled $4,926,903, an increase of $766,150 over the previous year. The fund balance increased by $289,780 and was $766,150 at the end of the year. A portion of this fund balance is available to provide working capital for the fund until tax settlements 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 balances as compared to the adopted budget of the previous year. -, Fund Balance General Beginning of Year Fund Budget Amount % of Budget 1977 $3,581,342 $1,190,531 33.2 -, 1978 3,962,664 1,357,779 34.3 1979 4,351,005 1,835,116 42.2 1980 5,000,144 2,395,478 48.5 1981 5,574,742 2,666,897 47.8 The amount of revenue from various sources and the changes from the previous year are shown in the following table. Increase 1980 Percent (Decrease) Revenue Source Amount of Total from 1979 General property taxes $1,943,922 37.2 $(17,755) License and permits 229,148 4.4 17,885 Intergovernmental revenue 2,054,907 39.4 299,989 Charges for current services 108,547 2.1 5,368 Fines and forfeits 103,013 2.0 10,637 Interest on investments 291,547 5.6 125,519 Miscellaneous 58,989 1.1 (54,436) Transfers 426,583 8.2 9,583 Total revenue $5,216,683 100.0% $396,790 General property taxes accounted for 37.2% of the General Fund revenues and current tax collections were 97.98% of the total tax levy for the year 1980. Intergovernmental revenues accounted for 39.4% of the revenues compared to 34% .- the previous year. The increase in intergovernmental revenue came primarily from the state homestead credit. .,. 10 _ v Increases in levels of expenditures for major functions of the City over the —. preceding year are shown in the following table: _ Increase 1980 Percent (Decrease) Expenditures by Function Amount of Total from 1979 General government $ 618,215 12.5 $ 36,415 Public safety 1,656,506 33.6 237,612 Civic center 128,795 2.6 25,408 Public works 1,004,002 20.4 55,107 Parks and recreation 839,271 17.1 (60,553) Debt service 16,030 .3 16,030 Transfers 664,046 13.5 456,131 Total expenditures $4,926,903 1-60-71% $766,150 Adjusted assessed valuations of $176,260,691 represented an increase of 10% over the preceding year. Part of the increase in assessed valuation was due to a court ruling declaring the concept of limited market value unconstitutional. To comply with this ruling the legislature moved to eliminate this concept during 1980 and 1981 . The mill rates by purpose for these fiscal years is as follows: Purpose 1980 1979 General Fund 14.795 14.520 General Debt Service .260 .237 Capital Improvement .280 .274 Total Tax Rate 0 0 SPECIAL REVENUE FUNDS Purpose Special Revenue funds are used to account for revenue 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 collections apportioned to the City by the State of Minnesota for street construction are 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. These funds are derived from the excess of the 11 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 , 1980 was $1,459,250 which was an increase ., from the previous year of $63,546. Revenues totaled $352,801, which is the combination of State Aid and interest earned on the cash held in this fund. The State Aid portion of the revenues decreased from the previous year by $79,628. The expenditures from this fund were in the form of transfers to other funds and increased this year by $150,494. 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. The City's share of these Revenue Sharing funds for the year 1980 was $220,854 which was a ^ decrease from 1979 of $3,624. Revenue Sharing funds are transferred from the Revenue Sharing Fund to the General Fund where the detailed amounts are budgeted. During 1980, transfers of these types totaled $230,000. The fund balance at December 31, 1980 was $144,689, which represents a decrease of $4,886 from 1979. STEP Fund The STEP Fund was set up to account for phase II of the Selective Traffic Enforcement Program. The program is being funded by a grant from the State '~ of Minnesota and City funds. Revenues decreased during 1980 to an overall reduction of $24,457 from -- 1979. The expenditures decreased by $26,466 to bring the fund balance to -0- at December 31, 1980, which closed this fund. Teen Center Fund The Teen Center Fund was set up to account for the revenue and expenditures associated with the operation of a teen center and teen dances. There were no revenues during 1980 for this fund. It was determined that the Parks and Recreation division within the General Fund should account for this activity. The fund balance was then transferred to the General Fund during 1980 leaving a -0- fund balance. 12 Community Development Block Grant A $140,000 Community Development Block Grant was approved for the City of Fridley during 1977. Funds are received from HUD as money is spent and HUD is billed. Of the $140,000 grant, $93,500 is scheduled for home rehabilitation grants, $20,400 for housing maintenance, $21,000 for administration and $5,100 for a resource center. The fund balance for December 31, 1980 decreased by $7,067 to a balance of -0-, which closed this fund. Home Ownership Fund A grant of $120,000 was approved in 1979 by HUD for the City of Fridley. The purpose of the grant is to facilitate home ownership for large, low-income families. Revenues ( including transfers) during 1980 totaled 98,565 which was an increase of $97,491 from 1979. Expenditures totaled $93,415 which when combined with the revenues provided an excess of revenues over expenditures and brought last years deficit fund balance to -0-. GENERAL DEBT SERVICE FUND Purpose The General Debt Service Fund accounts for money devoted to the payment of interest and principal on long-term general obligation debt (other than Special Assessment Debt Service) . This fund is used for the accumulation of monies for payment of general obligation bonds and interest thereon. Property taxes provide the necessary revenue. During 1980, revenues amounted to 42,636, of which $30,952 was from property tax collections. The City has one general obligation issue outstanding which is carried in this fund. This is a $500,000 issue for the Civic Center dated May 1, 1965. On December 31, 1980, $200,000 was outstanding on this bond issue. The Debt Service Fund balance at December 31, 1980 was $69,480. CAPITAL PROJECT FUNDS Purpose Capital Project Funds receive and disburse monies used for acquisition of WWI capital facilities other than those financed by Special Assessments and Enterprise Funds. 13 Capital Improvement Fund This fund was established to account for the revenue and expenditures of a revolving type Capital Improvement Fund. During 1980 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. A transfer was made to this fund in the amount of $500,000 to finance the future replacement of the assets that are growing with age. No expenditures have been made from this Fund to date. At December 31. 1980 the fund balance was $875,882. Islands of Peace This fund was established to account for the Islands of Peace Project. A $150,000 grant has been received from the State of Minnesota for the purpose of constructing a shelter building. This building was substantially completed during 1980. Expenditures exceeded revenues by $2,045 leaving the fund balance at $1,559 at December 31, 1980. North Park Fund This fund has been established to account for the special North Park Project. .„ The North Park area is currently being developed by a private non-profit foundation and the City as a nature center. A $27,000 grant was received in 1976 from the State of Minnesota for use of this project. This project is substantially complete. A transfer was made to the North Park Visitation Center fund to close out this fund. North Park Visitation Center Fund This fund was set up to account for the receipts and disbursements relating to the construction of a Visitation Center Building in North Park. A grant of $365,000 has been approved by the Metropolitan Council for this project, $341,231 was received during 1980. The fund balance at year end was $19,667. -- Locke Park Fund This fund has been set up to account for three separate trail grants. Grants in the amount of $5,000, $38,000 and $40,240 for trail systems in Locke Park have been approved by the State. Grant funds in the amounts of $15,200 for the $38,000 grant were received in 1978. This project is substantially complete. Disbursements exceeded revenues during the year and left the fund balance at -0-. - 14 '— Sears Fund This fund was set up to account for the receipts and disbursements relating to the purchase of park land formerly owned by Sears Roebuck. The City received a LAWCON grant of $55,783 in 1980 for the purchase of the property . Additional revenue in the amount of $3,867 was received as interest on cash, and a $12,000 donation. The fund balance at year end was $76,226. 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 improvements 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 issuing temporary three-year bonds to finance the improvements during the construction period of projects. The temporary bonds usually are in force past the time the special assessment rolls are adopted by the City Council . 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. Special Assessments Revolving Fund The purpose of this fund is to provide temporary financing for small improvement projects. Special Assessments The Special Assessments 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. The fund balance increased during 1980 by $776,403. 15 ENTERPRISE FUNDS Purpose Enterprise funds account for the financing of services to the general public in which all or most of the cost involved is 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, the municipal liquor stores and the operation of a small shopping center. Except for ownership, Enterprise Funds bear a close resemblance to privately owned utility or service enterprises. Municipal Liquor Fund The Municipal Liquor Fund was established to account for the operation and financing of the City-owned municipal liquor stores. One is located at 6289 Highway 65; the other is located at 6586 University Avenue Northeast. The City owns the land, building and fixtures at the Highway 65 location. The City leases the building at the University Avenue location. The most current lease was negotiated in 1978 for the University Avenue location. Shown below is a summary of liquor store operations for the years 1980, 1979, 1978, 1977, and 1976. 1980 1 979 1 978 1977 1976 Sales $1,661,818 $1,461 ,144 $1,323,462 $1,160,937 $1,061,562 Gross profit 333,245 275,862 260,941 228,106 241,480 Net profit 171,285 117,404 119,607 98,681 98,963 -, Transfers to the General Fund $ 85,000 $ 85,000 $ 85,000 $ 85,000 $ 85,000 Retained earnings of the Municipal Liquor Fund were $860,634 on December 31, 1980, compared to $774,349 on December 31, 1979. -, Public Utility Fund This fund accounts for the operation and financing of the City-owned sewer and water systems. In 1970, bonds in the amount of $460,000 were issued. In 1975, these bonds were refunded and a new bond issue substituted. On December 31, 1980, $ 47,500 of these bonds were outstanding and payable in future years. 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 $370,000 for this bond issue was outstanding on December 31 , 1980. Although deferred tax levies are 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. 16 The receivable from the Metropolitan Waste Control Commission of $448,126 represents the City's share of the equity in the Minneapolis Sewer System which was acquired by the Commission on January 1, 1971, the balance of the reserve capacity charges which were advanced to the Commission during 1971 and 1972, and final cost allocation from 1978. The reserve capacity charges of $37,765 at December 31, 1980 will be repaid with interest directly to the City over the next ten years. The remainder 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. 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. The City Council has a policy of not depreciating water and sewer lines paid for by special assessments. The reasoning for this is that Fridley is still a young community. The original water and sewer lines have not been fully paid for by the property owners. To require these same property owners to pay for the lines by special assessments and also via their utility bills would require the same customers to pay for the system twice. The Public Utility Fund has transferred monies to the Special Assessment Debt Service funds to pay principal and interest on some bond issues although there is no legal requirement to do so. As a result, the City considers such transfers as direct charges against retained earnings and not against income. Retained earnings on December 31, 1980 were $4,080,709 compared to $3,714,553 on December 31, 1979. Shown below is a summary of operations of the Public Utility Fund for the — years 1980, 1979, 1978, 1977, and 1976. 1980 1979 1 978 1977 1976 Operating income $1,477,709 $1,397,400 $1,404,459 $1,276,196 $1,286,963 Operating expenses 1 ,376,970 1,237,212 1,299,988 1,139,152 1 ,108,130 Operating income $ 100,739 $ 160,188 $ 104,471 $ 137,044 $ 178,833 Christenson Building Fund On September 1, 1978 the City entered into a lease/option agreement with O.H. Peterson, Jr. for the property known as the Christenson building . The property consists of 2.66 acres of land, an older shopping center building, a house, and a cement block commercial garage building. The lease runs until July 31, 1979. The lease contains provisions for two one-year extensions. The City exercised the option for both one-year extensions. The lease agreement also provides that the City has the option to purchase the property for $275,000. The purpose of the City entering into the lease agreement with Mr. Peterson is to hold the property together as one parcel pending possible redevelopment. The City is currently 17 operating the property as a shopping center. The City pays $1,700 month rent plus all other operating expenses, and in turn collects rent from the tenants. At December 31, 1980 this fund sustained a net loss of $2,242, reducing the fund balance to $7,470. .. INTERNAL SERVICE FUNDS 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. During 1980, an Internal Service Fund was created to combine all fringe benefits for employees into one area. This was needed so that various costs could be picked up by a simple review. The fund balance for this fund at December 31, 1980 is $199,795. TRUST AND AGENCY FUNDS Trust and Agency Funds account for assets held by the City as a trustee or agent for individuals, private organizations, and other governmental units. The Trust and Agency 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 for December 31, 1980 is $2,494. GENERAL FIXED ASSETS GROUP OF ACCOUNTS Purpose General Fixed Assets are those fixed assets of a governmental jurisdiction which are not accounted for in an Enterprise 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 GROUP OF ACCOUNTS Purpose General obligation bonds and other forms of long-term debt supported by general revenue 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 18 separate self-balancing group of accounts entitled "General Long Group of Accounts." 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 date of issuance. PENSIONS Employees in the City of Fridley are covered by five pension plans: 1) Fridley Fire Relief Association for Volunteer Firemen. 2) Fridley Police Pension 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 newly-hired Police Officers. 4) The basic Public Employees Retirement Plan, which covers certain other City civilian employees. 5) Coordinated Public Employee Pension Plan, which covers the balance of the City civilian employees. The employees covered by the Coordinated P.E.R.A. Plan are also covered by Social Security. The City is currently making all pension contributions required by law. For additional background information on the pension plans covering City employees, see Notes to the Financial Statements. INDEPENDENT AUDIT Section 7.13 of the City Charter requires an annual audit to be made of the books of account, financial records and transactions of all administrative departments of the City by a certified public accountant or the State Auditor's Department of the State of Minnesota. This requirement has been complied with and the opinion of the George M. Hansen Company P.A. , Certified Public Accountants, is included with this report. 19 STATISTICAL SECTION The statistical section this year did not include all the demographic statistics as set forth in Statement 1 of the Governmental Accounting and Financial Reporting Principles. The data required for this statement for the last ten years is now being retrieved and will be an integral part of next years Comprehensive Annual Financial Report. ACKNOWLEDGEMENTS The preparation of the report on a timely basis could not have been accomplished without the efficient and dedicated services of the Finance and Central Services staff . We would like to express our appreciation to the Mayor and members of the City Council for their interest and support in '^ planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully Submitted, -a-vvyNA4 2.1-„9.., Sidney C. Inman Richard D. Pribyl Director of Central Services Finance Officer 20 ACCOUNTANT'S OPINION I GEORGE M. HANSEN COMPANY, P.A. A Professional Corporation of Certified Public Accountants 1 75 SOUTH PLAZA BUILDING MINNEAPOLIS,MINNESOTA 55416 ACCOUNTANTS ' OPINION The City Council of Fridley, Minnesota We have examined the combined financial statements of the City of Fridley, Minnesota, as of and for the year ended December 31, 1980, 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 combined financial statements referred to above present fairly the financial position of the City of Fridley, Minnesota, at December 31, 1980, 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 consistant with that of the preceding year, except for the changes for which we concur as noted footnote 11. Our examination was made for the purpose of forming an opinion on the combined financial statements taken as a whole. The combining, individual fund, and — account group 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 combined financial statements of the City of Fridley, Minnesota. The information has been subjected to the auditing procedures applied in the exam- ination of the combined financial statements and, in our opinion, is fairly stated in all material respects in relation to the combined financial state- _ ments taken as a whole. Our examination did not include the statistical information listed in the table of contents. ._)?") ._e-lie 277 17-e4A-,-a-e/x2 Cd-17-7 June 3, 1981 21 COMBINED FINANCIAL STATEMENTS 23 CITY OF FRIDLEY, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1980 Governmental Fund Types Special Debt Capital Special General Revenue Service Projects Assessment Assets Cash (deficit) $ (880,313) $ 20,109 $11,280 $ 52,082 $ (92,338) Investments, at cost 3,451,431 1,070,000 58,200 954,400 5,294,100 Receivables (Net of allowance for uncollectable) : Accounts 65,937 600 ., Taxes 24,938 408 Special assessments 5,336 3,947,065 Interest 463,424 Due from other governments 513,830 25,000 ., Due from other funds Inventories, at cost 15,052 Prepaid expenses Long term receivable Restricted assets: Cash Investments, at cost 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 $3,145,805 $1,603,939 $69,888 $1,006,482 $9,174,427 fn See Accompanying Notes to Financial Statement 24 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 1980 1979 $ 261,058 $410,531 $ 75 $ (217,516) $ (423,649) 2,707,000 11,500 13,546,631 12,017,057 306,875 373,412 331,689 "- 25,346 21,802 3,952,401 3,610,729 463,424 514,715 52,913 591,743 612,157 28,588 28,588 41,313 188,157 203,209 184,996 64,049 64,049 154,588 398,054 398,054 412,141 (760) (760) 9,333 210,400 210,400 229,182 11,903,293 $18,540,964 30,444,257 29,731,452 $69,480 69,480 64,383 200,459 200,459 272,766 $16,119,627 $410,531 $11,575 $18,540,964 $269,939 $50,353,177 $47,784,654 25 CITY OF FRIDLEY, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS (Continued) ., December 31, 1980 Governmental Fund Types Special Debt Capital Special General Revenue Service Projects Assessment Liabilities Accounts payable $ 122,199 $ 10,948 $ 107 Deposits payable 7,909 124,595 Contracts payable 23,993 Salaries payable 28,568 Leave payable ., Pensions payable Deferred revenue 30,274 $ 408 Due to other governments 178 Due to other funds Bonds payable 5,487,500 Total liabilities 189,128 -0- 408 34,941 5,612,202 — Fund Equity Contributed capital Investment in general fixed assets Retained earnings - unreserved Fund balance: Reserved - See note 10 2,322,950 447,820 69,480 931,489 3,766,748 Unreserved 633,727 1,156,119 40,052 (204,523) Total retained earnings/ fund balance 2,956,677 1,603,939 69,480 971 ,541 3,562,225 Total fund equity 2,956,677 1,603,939 69,480 971,541 3,562,225 Total liabilities and fund equity $3,145,805 $1,603,939 $69,888 $1,006,482 $9,174,427 See Accompanying Notes to Financial Statement 26 EXHIBIT A-1 Cont. Fiduciary Proprietary Fund Types Fund Types Account Groups Totals Internal Trust and General General Long (Memorandum Only) Enterprise Service Agency Fixed Assets Term Debt 1980 1979 $ 133,901 $ 2,953 $ 270,108 $ 299,126 $ 9,081 141,585 161,093 $ 41,351 65,344 65,836 4,607 155 33,330 207,628 207,628 292,719 24,939 448,126 478,808 524,148 178 28,588 28,588 51,963 417,500 200,000 6,105,000 6,545,000 1,004,134 . 210,736 9,081 -0- 269,939 7,330,569 7,964,824 10,166,680 10,166,680 10,166,680 $18,540,964 18,540,964 17,727,734 4,948,813 4,948,813 4,498,614 _ 199,795 7,738,282 3,500,642 2,494 1,627,869 3,926,160 4,948,813 199,795 2,494 14,314,964 11,925,416 15,115,493 199,795 2,494 18,540,964 -0- 43,022,608 39,819,830 $16,119,627 $410,531 $11,575 $18,540,964 $269,939 $50,353,177 $47,784,654 27 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, 1980 -, Governmental Types Special Debt General Revenue Service Revenues: Taxes and special assessments $1,943,922 $30,952 Licenses and permits 229,148 Intergovernmental revenue 2,054,907 $ 596,875 7,826 Charges for current services 108,547 Fines and forfeitures 103,013 Interest on investments 291,574 100,572 3,858 Miscellaneous 58,989 Total revenues 4,790,100 697,447 42,636 Other financing sources: Transfers from other funds 426,583 68,766 ., Bond sales Total other financing sources 426,583 68,766 -0- Total revenues and other financing sources 5,216,683 766,213 42,636 Expenditures: General government 618,215 Public safety 1,656,506 81,377 Civic center . 128,795 Public works 1,004,022 107,044 Parks and recreation 839,271 Capital projects Debt service 16,030 37,539 Other Total expenditures 4,262,839 188,421 37,539 Other financing uses: Transfers to other funds 664,064 521,672 Bonds issued Total other financing uses 664,064 521,672 -0- Total expenditures and other financing uses 4,926,903 710,093 37,539 .. Excess of revenues and other sources over expenditures and other uses 289,780 56,120 5,097 Fund balance January 1 as previously reported 2,395,478 1,547,819 64,383 •• Adjustment: See note 11 271,419 - Fund balance January 1 as restated 2,666,897 1,547,819 64,383 Fund balance December 31 $2,956,677 $1,603,939 $69,480 See Accompanying Notes to Financial Statements 28 EXHIBIT A-2 - Fiduciary Fund Type Totals Capital Special Expendable (Memorandum Only) Projects Assessments Trust 1980 1979 5 35,710 $1,031,129 $3,041,713 $2,631,619 229,148 211,263 - 407,461 25,000 3,092,069 2,677,467 108,547 103,179 103,013 92,376 36,532 521,190 $1,483 955,209 664,066 26,680 300,594 386,263 565,190 506,383 1,877,913 1,483 7,915,962 6,945,160 507,703 279,528 1,282,580 771 ,352 2,100,139 2,100,139 1,145,000 - 507,703 2,379,667 -0- 3,382,719 1,916,352 1,014,086 4,257,580 1,483 11,298,681 8,861,512 618,215 581 ,800 1,737,883 1,495,493 128,795 103,387 1,111,066 1,056,758 839,271 909,317 - 400,712 1,026,235 1,426,947 1,524,213 271,352 324,921 304,789 42,560 42,560 25,110 400,712 1,340,147 -0- 6,229,658 6,000,867 - 2,703 21,030 1,209,469 681,051 - 2,120,000 2,120,000 1,145,000 2,703 2,141,030 -0- 3,329,469 1,826,051 - 403,415 3,481 ,177 -0- 9,559,127 7,826,918 610,671 776,403 1,483 1,739,554 1,034,594 360,870 3,851,501 1,011 8,221,062 6,768,941 ( 1,065,679) (794,260) (376,733) 360,870 2,785,822 1,011 7,426,802 6,392,208 $ 971,541 $3,562,225 $2,494 $9,166,356 $7,426,802 - _________ -'7 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, 1980 General Fund Variance- Favorable ., Budget Actual (Unfavorable) Revenues: Taxes and special assessments $1,988,108 $1,943,922 $ (44,186) Licenses and permits 182,095 229,148 47,053 Intergovernmental revenue 1,913,556 2,054,907 141 ,351 Charges for current services 115,460 108,547 (6,913) ., Fines and forfeits 85,000 103,013 18,013 Interest on investments 117,500 291,574 174,074 Miscellaneous 57,300 58,989 1,689 Total revenues 4,459,019 4,790,100 331,081 Other financing sources - transfers from other funds 426,000 426,583 583 Total revenues and other financing sources 4,885,019 5,216,683 331,664 Expenditures: General government 701,869 618,215 83,654 Public safety 1,729,702 1,656,506 73,196 ., Civic Center 130,529 128,795 1,734 Public works 1,166,134 1,004,022 162,112 Parks and recreation 1,028,488 839,271 189,217 Capital projects Debt service 16,030 16,030 Reserve for contingency 227,392 227,392 Total expenditures 5,000,144 4,262,839 737,305 Other financing uses - transfers to other funds 664,064 664,064 -0- Total expenditures and other financing uses 5,664,208 4,926,903 737,305 Excess (deficiency) of revenues and other sources over expenditures and other uses (779,189) 289,780 1,068,969 Fund balance January 1, as previously reported 2,395,478 2,395,478 Adjustment: See Note 11 271,419 271,419 •� Fund balance January 1, as restated 2,395,478 2,666,897 Fund balance December 31 $1,616,289 $2,956,677 $1,340,388 See Accompanying Notes to Financial Statements 30 EXHIBIT A-3 Total Special Revenue Fund Types (Memorandum Only) _ Variance- Variance- Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $1,988,108 $1,943,922 $ (44,186) 182,095 229,148 47,053 $ 635,262 $ 596,875 $(38,387) 2,548,818 2,651,782 102,964 115,460 108,547 (6,913) 85,000 103,013 18,013 69,000 100,572 31,572 186,500 392,146 205,646 - 57,300 58,989 1,689 704,262 697,447 (6,815) 5,163,281 5,487,547 324,266 110,000 68,766 (41,234) 536,000 495,349 (40,651 ) - 814,262 766,213 (48,049) 5,699,281 5,982,896 283,615 701,869 618,215 83,654 121,000 81,377 39,623 1,850,702 1,737,883 112,819 130,529 128,795 1,734 190,550 107,044 83,506 1,356,684 1,111,066 245,618 - 1,028,488 839,271 189,217 16,030 16,030 227,392 227,392 311,550 188,421 123,129 5,311,694 4,451,260 860,434 - 558,000 521,672 36,328 1,222,064 1,185,736 36,328 869,550 710,093 159,457 6,533,758 5,636,996 896,762 i - (55,288) 56,120 111,408 (834,477) 345,900 1,180,377 1,547,819 1,547,819 3,943,297 3,943,297 - 271,419 271,419 _. 1,547,819 1,547,819 3,943,297 4,214,716 $1,492,531 $1,603,939 $111,408 $3,108,820 $4,560,616 $1,451,796 31 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, 1980 Proprietary Fund Types Totals Internal (Memorandum only) Enterprise Service 1980 1979 Sales and cost of sales: Sales $1,661,818 $1,661,818 $1,461 ,144 Cost of sales 1,328,573 1,328,573 1,185,282 Gross profit 333,245 -0- 333,245 275,862 Operating revenues: Water sales and sewer rents 1,404,119 1,404,119 1,313,764 Connection permits 2,079 2,079 5,524 Miscellaneous revenues 71,511 71 ,511 78,112 Rental income 36,990 36,990 45,527 Charges for services $199,795 199,795 Total operating revenue 1,514,699 -7-077T5 9,795 1,714,494 1,442,927 Operating expenses: Personal services 484,825 484,825 428,778 Supplies and other charges 1,030,486 1,030,486 936,381 Depreciation 123,389 123,389 115,649 Total operating expenses 1,638,700 -0- 1,638,700 1,480,808 Operating income 209,244 199,795 409,039 237,981 Nonoperating revenues (expenses) : Intergovernmental revenue 7,227 7,227 3,011 Interest on investment 294,704 294,704 207,691 Tap fees 1,125 1,125 2,137 Debt service (19,508) (19,508) (24,482) Current value credit received 13,613 13,613 13,033 Miscellaneous revenue 16,905 16,905 16,462 -• Total non-operating revenues (expenses) 314,066 -0- 314,066 217,852 Net income 523,310 199,795 723,105 217,852 Transfers (73,111 ) -0- (73,111 ) (90,301 ) Net change in retained earnings 450,199 199,795 649,994 365,532 -- Retained earnings January 1 4,498,614 -0- 4,498,614 4,133,082 Retained earnings December 31 $4,948,813 $199,795 $5,148,608 $4,498,614 0\ See Accompanying Notes to Financial Statements 32 EXHIBIT A-5 CITY OF FRIDLEY, MINNESOTA - COMBINED STATEMENT OF CHANGES IN FINAINCIAL POSITION ALL PROPRIETARY FUND TYPES Year Ended December 31, 1980 Totals Internal (Memorandum Only) Enterprise Service 1980 1979 Sources of working capital : Operations: - Net income for the year $450,199 $199,795 $649,994 $366,950 Items not requiring working capital-depreciation 123,389 123,389 115,649 Working capital provided by operations 573,588 199,795 773,383 482,599 Long term receivable 14,087 14,087 13,488 Net decrease in restricted assets 28,875 28,875 24,322 Total sources of working capital 616,550 199,795 71T,345 520,409 Uses of working capital : Acquisition of fixed assets 22,964 22,964 47,367 Decrease in long term bongs payable 62,661 62,661 106,962 Decrease in deferred revenue 46,301 46,301 5,429 Adjustment of prior years interest 133 Total uses of working capital 131,926 -0- 131,926 159,891 Net increase in working capital $484,624 $199,795 $684,419 $360,518 Elements of net increase (decrease) - in working capital: Cash $315,156 $410,531 $725,687 $(65,998) Investments 238,226 238,226 272,437 Receivables 2,681 2,681 10,045 Inventory 22,899 22,899 5,907 Prepaid expenses 16,611 16,611 6,330 Due from other governments (29,373) (29,373) 9,474 - Due from other funds (12,725) (12,725) 41,313 Accounts payable (109,333) (2,953) (112,286) 74,589 Salaries payable (4,607) (155) (4,762) Leave payable (207,628) (207,628) Sales tax payable 6,145 Bonds payable 45,089 45,089 1 Deferred revenue 275 Net increase in working capital $484,624 $199,795 $684,419 $360,518 R 1 See Accompanying Notes to Financial Statements 33 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1980 The accounting policies of the City of Fridley conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant policies: 1. Summary of Significant Accounting Principles The City of Fridley operated under the "Home Rule Charter" form of government according to applicable State of Minnesota Statutes. The Charter prescribes a Manager-Council form of government and provides the following services: General Government, Public Safety, Public Works and Parks and Recreation services. A. 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 eight generic fund types and three broad catagories as follows: GOVERNMENTAL FUNDS General Fund - The General Fund is the general 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 legally restricted to expenaitures 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 to account for financial resources to be 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. 34 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1980 PROPRIETARY FUNDS 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 user 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 Trust Funds - Trust Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments, and/or other funds. The City's Trust Funds are classified as Expendable Trust Funds and are accounted for in essentially the same manner as governmental funds. B. Fixed Assets and Long-Term Liabilities The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. 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 satements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Fixed assets used in governmental fund type operations (general fixed assets) are recorded at historical cost and accouted 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. 35 CITY OF FRIDLEY, MINNESOTA — NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1980 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 except Special Assessment 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 representd by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund — liabilities. They are instead reported as liabilities in the General Long-Term Debt Account Group. Proprietary funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets, including fixed assets, and all liabilities, including long-term liabilities, associated with their activity are included on their balance sheets. — Their reported fund equity is segregated into contributed capital and retained earnings components. Proprietary fund types operating statements present increases (revenues) and decreases (expenses) in net total assets. Depreciation of fixed assets used by 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 estmated useful lives are as follows: — Land improvement 20 years Buildings 20 years -- Office equipment 5 - 10 years Machinery and equipment 5 - 10 years Other improvements 20 years The City Council has a policy of not depreciating water and sewer lines paid for by special assessments. The reasoning for this is that Fridley is still a young community . The original water and sewer lines have not been fully paid for by the property owners. To require these same property owners to pay for the lines by special assessments and also via their utility bills would require the same customers to pay for the system twice. Capital leases are recorded as assets in either the proprietary funds or in the general fixed assets account group, as appropriate. Donated fixed assets are valued at the fair market value as of the date received. 36 — CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1980 C. Basis of Accounting Basis of accounting refers to when revenues and expenditures 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 measurable and available. Substantially all sources of revenue are accrued except interest on special assessments receivable, which is recognized when due. 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. — 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. Unbilled utility service receivables are recorded at year end. D. 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 Counc i 1 may authorize transfer of budgeted amounts between departments within any fund. 5. 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 alternatively achieved through general obligation bond indenture provisions. Budgetary control for Capital Projects and Special Assessments Funds is accomplished through the use of project controls. 6. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP) . 37 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1980 7. Budgetary control is maintained at the expenditure catagory level within each activity. Budgetary control, by departments or divisions, and by catagory is required by the City Charter. E. 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. F. Cash and Investments Cash balances from all funds are combined and invested to the extent ^, available in certificates of deposit and U.S. government securities. 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. Investments, including $265,000 of temporary bonds issued by the City and held as investments by the Special Assessment Fund, are stated at cost and adjusted to market value only when a permanent decline in market has occured or when such investments will not be carried to maturity. G. Inventory F.I.F.O. based inventory is valued at the lower of cost or market based on physical counts in the General Fund and perpetual system in the .. Enterprise Funds. Inventory in the General Fund consists of expendable supplies held for consumption. H. Vacation and Sick Leave ^ The Employee Benefits Internal Service Fund reflects the City's accrued liabilities for vacation and other benefits for all City employees, exclusive of accrued sick leave which is not recorded. The estimated potential liability for sick leave benefits is estimated to be $206,850 based on one-third (1/3) of the total sick leave accumulation for all City employees as stated in the Personnel Ordinance. This potential liability is essentially covered by the $199,795 Retained Earnings in the Employee Benefits Fund. I. Comparative Data Comparative total data for the prior year has 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. Certain 1979 amounts have been reclassified to conform to the 1980 presentation. 38 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1980 J. 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. 2. Property Taxes -' Property taxes are set by the City Council with the levy certified to the County, who acts as collection agent, in October prior to the year collectible. Such taxes constitute a lien on the property on January 1 of the year collectable. Cities in Minnesota operate under a levy limitation law which generally permits a six percent (6%) increase in taxes levied per capita each year and within taxing district. Levies for bonded indebtness are not limited by this law. 3. Due From Other Governments The deferred credit of the Enterprise Fund represents: 1. The City's share of equity in the City's sewer interceptors is $366,457 (the interceptors were acquired by the Metropolitan Waste Control Commission on 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 $43,904, which will be repaid with interest through 1988, is for advances made to the Commission during 1971 and 1972. 3. The remaining balance of $37,765 represents the final cost allocation for 1979. This amount will be credited against disposal charges from the Commission in 1981 . The receivable in the Special Revenue Funds includes $447,820 due from the State of Minnesota Department of Highways and $54,114 due from Federal Revenue Sharing. The amounts aue from the Department of Highways is reserved for street construction. 39 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1980 4. Changes in General Fixed Assets A summary of changes in general fixed assets are as follows: Balance Balance Jan 1, 1980 Additions Deletions Dec 31 , 1980 Land $ 1,656,320 $ 458 $ 1,656,778 ., Buildings and structures 1,200,801 1,200,801 Improvements other than buildings 11,709,629 601,817 12,311,446 Furniture, fixtures and office equipment 273,957 21,243 295,200 Machinery and equipment 1,188,030 132,217 1,320,247 Specialized equipment 59,043 27,824 86,867 Construction in progress 1,639,954 1,654,988 $1,625,317 1,669,625 Total $17,727,734 $2,438,547 $1,625,317 $18,540,964 Construction in progress is composed of the following: Land $ 362,504 Buildings and structures 329,267 Improvements other than buildings 977,854 Total $1,669,625 A summary of proprietary fund type property, plant and equipment at December 31, 1980 follows: Enterprise ^ Land $ 223,312 Buildings 884,818 Office furniture 116,436 Other improvements 10,290,589 Machinery and automotive equipment 1,910,911 Total 13,426,066 Less accumulated depreciation 1,522,773 Net $11,903,293 40 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31 , 1980 5. Changes in Long-Term Liability Debt The following is a summary of bond transactions of the City of the year ended December 31, 1980 (in thousands of dollars) : General Special Long-Term Enterprise Assessment Debt Funds Funds Total Bonds payable at January 1, 1980 $230,000 $525,250 $5,789,750 $6,545,000 New bonds issued: — General Obligation Special Assessment Bonds of 1980 1,755,000 1 ,755,000 Temporary Bonds of 1980 100,000 100,000 Temporary Bonds of 1980 265,000 265,000 Bonds retired (30,000) (107,750) (2,422,250) (2,560,000) Bonds payable at December 31, 1980 $200,000 $417,500 $5,487,500 $6,105,000 _. Bonds payable at December 31, 1980 are comprised of the following individual " issues (in thousands of dollars): General Long-Term Debt: $500,000 Civic Center Bonds of 1965 due in varying annual installments of $15,000 - $35,000 through February 1, 1987 and $20,000 on the final maturity date, February 1, 1988; interest at 3.20% - 3.50% 200 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% 370 $1,220,000 G.O. Refunding Bonds of 1975 due in varying annual installments of $10,000 - $95,000 through January 1, 1989; interest at 6.00% Total outstanding 380,000 Financed by special assessments (see below) 332,500 47.5 417.5 Special Assessment Funds: $1,603,000 Improvement Bonds of 1960 due in an annual installment of $75,000 on January 1, 1982; interest at 4.00% - 4.50% 75 41 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1980 $295,000 Improvement Bonus of 1962 due in annual installments of $5,000 through February 1, 1982; interest at 3.10% - 3.80% 10 $990,000 Improvement Bonds of 1963 due in annual -- installments of $35,000 through January 1, 1983; interest at 3.20% - 3.80% 70 $715,000 Improvement Bonds of 1965 due in annual installments of $25,000 through February 1, 1985 and $20,000 on the final maturity date, February 1, 1986; interest at 3.20% - 3.50% 145 $1,830,000 Improvement Bonds of 1967 due in varying annual installments of $20,000 - $40,000 through January 1, 1988; interest at 4.20% - 4.50% 210 $2,135,000 G.O. Special Assessment Bonds of 1972 due in varying annual installments of $50,000 - $150,000 through _. January 1, 1994; interest at 3.80% - 5.30% 900 $1,220,000 G.O. Refunding Bonds of 1975 due in varying -� annual installments of $10,000 - $95,000 through January 1, • 1989; interest at 6.00% Total outstanding 380,000 ., Financed by Enterprise Fund 47,500 332.5 $1,550,000' Special Assessment Bonds of 1976 due in varying annual installments of $25,000 - $175,000 through February 1, 1990; interest at 3.75% - 6.00% 850 $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% 875 $1,755,000 Special Assessment Bonds of 1980 in varying annual installments of $25,000 - $155,000 through February 1, 2001 ; interest at 7.25% - 8.50% 1,755 $265,000 Temporary Bonds of 1980 due August, 1983; interest at 8.00% 265 $5,487.5 42 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31 , 1980 The annual requirements to amortize all debt outstanding as of December - 31, 1980, including interest payments of $1,989,532, are as follows: Annual Requirements to Amortize Long-Term Debt December 31, 1980 Special - Year Ending General Long- Enterprise Assessment December 31 Term Debt Fund Fund Total 1981 $ 36,460 $ 62,050 $ 660,738 $ 759,248 - 1982 35,425 109,045 1 ,143,724 1,288,194 1983 39,299 58,575 1,203,447 1,201,310 1984 38,062 56,825 757,396 852,283 - 1985 36,837 55,075 668,061 759,973 1986 35,613 53,325 591 ,153 680,091 1987 51,575 550,415 601,990 __ 1988 20,350 451,425 471,775 1989 351,163 351,163 1990 274,450 274,450 1991 186,775 186,775 -. 1992 - 1996 416,406 416,406 1997 - 2001 150,875 150,875 $221,685 $466,820 $7,406,028 $8,094,533 $69,480 is available in the Debt Service Fund to service the General -. Obligation Bonds. 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. ._ 6. Leases The City leases space for Liquor Store No. 4 at the Holly Shopping Center, 6586 University Avenue Northeast. An eight-year lease was - entered into on October 30, 1978 which provides for the following rental payments effective May 1, 1979: ... $13,600 per annum for each of the first four lease years $13,192 per annum for each of the fifth throughout eighth years In addition to the above amounts, the City is required to pay $61 each - month for the first four years of the lease for lot maintenance and $73 per month during the fifth throughout the eighth years for lot maintenance. The City will also share a pro rata basis any increase in - taxes over the base year of 1978. - 43 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31 , 1980 In addition, the City has a lease-purchase agreement for the purchase of real estate located within Fridley, known as the Christenson property. - The agreement expired July 31, 1979 but contained provisions for two , one-year extensions. The City has the option of purchasing the property for $275,000. Presently the City pays $1,700 per month rent, or $20,400 annually, plus all other operating expenses. '- 7. Interfund Receivables and Payables Interfund Interfund Fund or Account Group Receivables Receivables Enterprise - Public Utility Fund $28,588 General Long-Term Debt $28,588 $28,588 $28,588 8. Pension Plans (All Funds) The City has no pension funds as such. Other agencies are responsible for the administration of all of the pension plans covering City employees. Employees of the City of Fridley are covered by five pension plans: 1 ) Fridley Volunteer Firefighter's Relief Association for volunteer firefighters; 2) Fridley Police Pension Association for police officers hired prior to December 15, 1975; 3) Public Employees Retirement Association (P.E.R.A. ) Police and Fire Plan covering the -, City's full-time firefighters and newly-hired police officers; 4) the basic Public Employees Retirement Association (P.E.R.A. ) covering certain other City civilian employees; and 5) the Coordinated Public Employees Retirement Association (P.E.R.A. ) which covers the balance of the City OR 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. A brief explanation of each of the pension plans follows: 1 . Fridley Volunteer Firefighter's Relief Association As of December 31 , 1980, there were thirty-four active volunteer -- firefighters covered by this pension system. The employer's contribution in 1980 was $55,591 . The pension plan provides benefits for volunteer firefighters only. It provides no benefits for full-time firefighters. The City's full-time firefighters are ^" covered by the P.E.R.A. Police and Fire Plan. The Fridley Volunteer Firefighters' Relief Association plan is actuarally sound; an audit report prepared by the State Auditor's Office as of December 31, 1979 -- 44 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1980 shows an actuarial surplus in the Fund of $143,860. Funding for the pension plan is provided entirely from the 2% rebate received from the State of Minnesota. The source of revenue for this rebate is a 2% levy on all fire insurance premiums written in the City of Fridley. In 1980 this source of revenue provided $55,591 to the Fund which was in excess of the amount needed to meet the normal pension requirements. 2. Fridley Police Pension Association The Fridley Police Pension Association was incorporated on December 26, 1966 to be effective January 1, 1967. On December 31, 1980, the plan covered twenty-five active sworn police officers. In 1980, the — employer's contribution was $134,283. An actuarial report prepared for the Fridley Police Pension Association by Gabriel, Roeder, Smith & Company shows an unfunded actuarial deficit of $588,573 as of December 31, 1978. Assets of the Association were shown as $1,265,283 and total liabilities of $1,853,856. On December 15, 1975, the City Council adopted an ordinance which had the effect of placing all newly-hirea police officers in the state-wide P.E.R.A. Police and Fire Plan. This action of the City Council had the effect of substantially reducing the City's liability for newly-hired officers as the statewide P.E.R.A. Police and Fire Plan has retirement benefits less liberal than those of the Fridley Police Pension Association. This action of the City Council has been upheld by the Minnesota District Court. In addition, a special bill was adopted by the State Legislature with an effective date of July 11, 1977, which also provided for putting new officers in P.E.R.A. The special Bill requires that the deficit in this fund be retired by 2010. The normal cost of the pension plan is 24.03% of payroll, according to Gabriel, Roeder, Smith & Company, actuaries. In addition to meeting this normal cost, the 1969 Guidelines Act requires that interest on the deficit in the amount of 5% be paid to the Association. This is the funding level that is required to be reached by the year 1980. The interest on the deficit amounts to approximately 3.9% of payroll. The total funding requirements of the plan, therefore, are approximately 27.93% of covered payroll with the employees contributing 8% and the City 19.93%. The City receives a 2% surcharge on automobile insurance policies written in the City . This is channeled through the State of Minnesota to the City for the purpose of helping to pay the employer's share of pension — costs. In 1980, this amounted to $67,979. The City contributed $66,504 of its own money during 1980. The total contribution to the fund for the employer's share was $134,283. This compares with a normal cost for the employer's share of the plan, assuming there was no deficit, of $86,225. The amount the City and the employees contributed is in excess of the level of funding that must be reached by 1980. Because of the Council 's 45 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1980 action in placing newly-hired police officers in the statewide P.E.R .A. Police and Fire Plan, the Fridley Police Pension Association Plan will .. eventually be phased out. It is the intent of the City to meet or exceed the funding requirements as provided by the Guildeines Act for this pension plan and to retire the deficit entirely on or before 2010 as is provided for by State legislation. The City bears the ultimate funding responsibility for the fund except for the amount contributed by the employees. 3. Public Employees Retirement Association - Police and Fire Plan As of December 31, 1980, there were thirteen full-time employees in the MR statewide P.E.R.A. Police and Fire Plan. The employer's contribution in 1980 was $34,048. The normal cost of this plan is 20% of payroll . The employee contributes 8% of payroll and the employer contributes 12%. According to the Financial Report of the Public Employees Retirement -• Association, this plan was 86% funded as of June 30, 1979. The City's funding responsibility is limited to the 12% employer's contribution. 4. Basic Public Employees Retirement Association Plan On December 31, 1980, there were twenty-eight permanent employees covered by the statewide Basic Public Employees Retirement Association Plan. —. Employees under this plan are not covered by Social Security. This is a statewide pension system covering local government employees throughout the State of Minnesota with the exception of the City of Minneapolis. The normal cost of this pension plan is 16% of payroll plus 2-1/2% to make up the actuarial deficit . Employees contribute 8% of payroll, and employer contibutes 8% plus an additional 2-1/2% which is applied toward the acutuarial deficit. The City's contribution to this plan was $59,071 in MR 1980. State law provides that the actuarial deficit is to be retired by 1997. According to the Financial Report, the plan was 57% funded as of June 30, 1979. 5. Coordinated Public Employees Retirement Association As of December 31, 1980, there were fifty-six permanent employees and twenty-six temporary employees covered under this plan. The employer's contribution in 1980 was $62,885. Employees covered by this plan receive approximately one-half of the benefits of those employees covered by the Basic P.E.R.A. Plan. In addition, they receive Social Security benefits. The normal cost of this plan is 8% of payroll plus an additional 1-1/2% to make up the actuarial deficit of the fund. The employee contributes 4% of payroll and the employer 4% of payroll, plus an additional 1-1/2% to retire the actuarial deficit. Under State law, the actuarial deficit is scheduled to be retired by 1997. The City's responsibility is limited to the 5.5% contribution. The funding rate for the Basic and Coordinated P.E.R.A. plans, taken as a whole, was 73% on June 30, 1980. CETA employees are covered by Social Security, but no other pension plan. 46 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1980 The previous disclosures are not in accordance with Financial Accounting Standard No. 36. The required information is not available because of the relief associations are not required to report under ERISA. 9. Segment Information for Enterprise Funds The City maintains operating funds for Liquor, Public Utilities, and the Christenson Building. Segment information for the year ended December 31, 1980 are as follows: Total Public Christenson Enterprise Liquor Utilities Building Funds Sales (less cost of sales of $1,328,573) $333,245 $ 333,245 Operating revenue $ 1,477,709 $36,990 1,514,699 Operating expenses (220,842) (1 ,376,970) (40,888) (1,638,700) Operating income (loss) 112,403 100,739 (3,898) 209,244 Nonoperating revenue 58,882 253,528 1,656 314,066 Net income 171,285 354,267 (2,242) 523,310 Transfers from (to) other funds (85,000) 11,889 -0- (73,111 ) Net change in retained earnings $ 86,285 $ 366,156 $(2,242) $ 450,199 Depreciation expense included in operating _ expenses 10,299 113,090 123,389 Net property and equipment additions 2,638 17,243 19,881 Net working capital 649,221 2,751,566 7,470 3,408,257 Bonds and other long-term liabilities payable from operating revenues 355,625 355,625 Total assets 943,443 15,168,001 8,183 16,119,627 Total equity $860,634 $14,247,389 $ 7,470 $15,115,493 47 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1980 10. Reserved Fund Balances/Fund Equity The following reservations have been made of various fund balances/fund equity at December 31, 1980: General Fund Reserved for: Encumbrances $ 522,950 Fixed asset replacement 700,000 Working capital 1,100,000 2,322,950 Special Revenue Fund Reserved for construction 447,820 Debt Service Fund Reserved for Debt Service 69,480 Capital Projects Fund Reserved for encumbrances 55,607 Reserved for Fixed Asset Replacement 875,882 931,489 Special Assessment Fund Reserved for: Encumbrances 123,108 Debt Service 3,643,640 3,766,748 Internal Service Fund Reserved for employee benefits 199,795 Total reservations $7,738,282 11. Prior Period Adjustments Certain fund balances, are noted below, have been restated primarily to reflect changes in accounting methods for encumbrances, construction costs and recognition of bond proceeds as revenue. 48 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1980 1 ) General Fund 1980 1979 Fund balance January 1 as previously reported $2,395,478 $1,835,116 Adjustment - Cancel accounts payable 8,350 28,779 Encumbrance previously expended 278,197 158,587 Cancel accounts receivable (15,128) (15,128) Other 403 Total adjustment 271 ,419 172,641 Fund balance January 1 as restated $2,666,897 $2,007,757 2) Special Assessment Fund 1980 1979 Fund balance January 1 as previously reported $3,851,501 $3,335,268 Adjustment - Encumbrances previously expended 79,321 78,351 Unassessed construction costs (500,000) Adjust assessments receivable (7,633) Other (15,082) Proceeds from bond sale previously recongnized as revenue (1,145,000) Total adjustment (1,065,679 (444,364) Fund balance January 1 as restated $2,785,822 $2,890,904 _ 3) Special Revenue Funds 1979 Fund balance January 1 as previously reported $1,285,432 Adjustment - Write off prior period accounts receivable (105,618) Fund balance January 1 as restated $1,179,814 -. 4) Capital Projects Funds 1979 Fund balance January 1 as previously reported $253,054 Adjustment - Write off accounts payable 608 Fund balance January 1 as restated $253,662 ,_ 49 CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1980 12. Contingent Liabilities The City participates in a number of federally assisted grant programs, principal of which are the General Revenue Sharing and Land and Water Conservation Programs. These programs are subject to program compliance audits by the grantors or their representatives. The audits of these programs for or including the year ended December 31, 1980 have not yet been conducted. Accordingly, the City's compliance with applicable grant requirements will be established at some future date. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time although the City expects such amounts, if any, to be immaterial. 13. Litigation The City had the usual and customary types 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. 14. Subsequent Events In January, 1981 , the City sold $2,200,000 of Housing and Redevelopment Tax Increment Bonds. These bonds are payable primarily from property taxes in the tax increment district and are backed by the full faith and credit of the City. 15. Deficiency in Pledged Collateral '^ Minnesota Statutes require depositories for City funds to pledge collateral to secure balances in excess of F.D.I.C. insurance coverage. -- The amount of deposits at a depository cannot exceed the F.D.I.C. insurance plus ninety percent (90%) of the market value of the securities pledged. At December 31, 1980 the deposits at Fridley State Bank were in excess of the requirement by approximately $200,000. 50 FINANCIAL SECTION GENERAL FUND The General Fund was established to account for the revenues and expenditures necessary to carry out basic governmental activities of the City, such as general government, public safety, and public works. Revenues are recognized by source, such as property taxes, licenses and permits, fines and forfeits, charges for services and state-shared taxes. General Fund expenditures are made primarily for current day to day operations and are recorded by functional classifications and by operating departments. This fund accounts for all financial transactions not accounted for in another fund. • EXHIBIT B-1 ._ CITY OF FRIDLEY, MINNESOTA GENERAL FUND COMPARATIVE BALANCE SHEET December 31, 1980 and 1979 - 1980 1979 Assets Cash (deficit) $ (880,313) $ (355,258) Investment, at cost 3,451,431 2,929,428 Receivables: Accounts 65,937 27,495 Taxes Unremitted 24,938 21 ,424 Delinquent 51,803 39,677 Less: estimated uncollectable (51,803) (39,677) Special assessments - Deferred principal 5,336 7,919 Delinquent 9,483 9,137 Less: estimated uncollectable (9,483 ) (9,137 ) - Interest 463,424 514,715 Inventories, at cost 15,052 19,738 Prepaid expenses 107,150 - Total assets $3,145,805. $3,272,611 Liabilities and Fund Balance Liabilities: Accounts payable $ 122,199 $ 246,354 - Deposits payable 7,909 1,709 Salaries payable 28,568 Leave payable 292,719 ._ Pension payable 24,939 Deferred revenue 30,274 29,343 Due to other governments 178 Due to other funds 10,650 Total liabilities 189,128 605,714 Fund balance: - Reserve for encumbrances 522,950 278,197 Reserve for replacement of fixed assets 700,000 Reserve for working capital 1,100,000 Unreserved - Designated for subsequent years expenditure 255,000 115,125 Undesignated 378,727 2,273,575 Total fund balance 2,956,677 2,666,897 Total liabilities and fund balance $3,145,805 $3,272,611 k -N - \\\\\\ 51 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, 1980 -- With Comparative Actual Amounts For Year Ended December 31 , 1979 1980 Variance- Favorable 1979 Budget Actual (Unfavorable) Actual .- Revenues: Taxes $1,988,108 $1,943,922 $ (44,186) $1,961,677 Licenses and permits 182,095 229,148 47,053 211,263 "" Intergovernmental revenue 1,913,556 2,054,907 141,351 1 ,754,918 Charges for current services 115,460 108,547 (6,913) 103,179 Fines and forfeits 85,000 103,013 18,013 92,376 .. Interest on investments 117,500 291,574 174,074 166,055 Miscellaneous 57,300 58,989 1,689 113,425 Total revenues 4,459,019 4,790,100 331,081 4,402,893 Other financing sources: Transfers from other funds 426,000 426,583 583 417,000 Total revenues and other financing sources 4,885,019 5,216,683 331,664 4,819,893 Expenditures: General government 701,869 618,215 83,654 581 ,800 Public safety 1,729,702 1,656,506 73,196 1,418,894 .. Civic center 130,529 128,795 1,734 103,387 Public works 1,166,134 1,004,022 162,112 948,915 Parks and recreation 1,028,488 839,271 189,217 899,824 Debt service 16,030 16,030 Reserve for contingencies 227,392 227,392 Total expenditures 5,000,144 4,262,839 737,305 3,952,820 Other financing uses: Transfers to other funds 664,064 664,064 -0- 207,933 Total expenditures and '" other financing uses 5,664,208 4,926,903 737,305 4,160,753 Excess (deficiency) of revenues and .. other sources over expenditures and other uses (779,189) 289,780 1,068,969 659,140 Fund balance January 1 as "" previously reported 2,395,478 2,395,478 1,835,116 Adjustment: See note 11 271,419 271,419 172,641 Fund balance January 1 as e . ate 2,395,478 2,666,897 2,007,757 Fund balance December $ ,616,289 $2,956,677 $1,340,388 $2,666,897 - J \k---- ,,• 52 EXHIBIT B-3 CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL Year Ended December 31, 1980 - With Comparative Actual Amounts For Year Ended December 31, 1979 _ 1980 Variance Favorable 1979 Budget Actual (Unfavorable) Actual Taxes: Current ad valorem taxes $1,938,808 $1,888,000 $(50,808) $1,908,461 Delinquent ad valorem taxes 36,000 37,844 1,844 30,944 Penalties and interest 5,903 5,903 5,899 Forfeited sale-taxes 5,000 7,084 2,084 9,347 Special assessments 8,300 5,091 (3,209) 7,026 - Total taxes 1,988,108 1,943,922 (44,186) 1,961,677 Licenses and permits: Licenses - - Contractor 12,800 13,760 960 15,452 Business 79,045 118,114 39,069 105,789 All Other 3,600 3,280 (320) 3,041 _, Permits 86,650 93,994 7,344 86,981 Total licenses and permits 182,095 229,148 47,053 211,263 Intergovernmental revenue: - C E TA Civil defense 93,039 5,5 00 6,792 1,292 5,056 Other federal grants 9,600 41 ,187 31,587 9,698 State maintenance aid 26,205 26,490 285 26,490 Attached machinery aid 17,018 17,018 16,741 Homestead credit 400,000 491,184 91,184 328,003 Local govermental aid 1,287,232 1,303,860 16,628 1,086,550 - Other state grants 56,900 4,182 (52,718) 12,656 Shade tree aisease control 15,000 25,178 10,178 42,930 Police and fire pension 96, 101 123,370 27,269 115,026 - Local grants 15,646 15,646 18,729 Total intergovernmental revenue 1,913,556 2,054,907 141,351 1,754,918 Charges for services: - General government 10,985 11,682 697 12,417 Public safety 17,675 17,718 43 21,916 Conservation of health 19,250 13,084 (6,166) 14,910 Recreation 67,550 66,063 ( 1,487) 53,936 Total charges for current services 115,460 108,547 (6,913) 103,179 ._ Fines and forfeitures 85,000 103,013 18,013 92,376 C ' Contiued) 53 EXHIBIT B-3 Cont. CITY OF FRIDLEY, MINNESOTA GENERAL FUND '^ STATEMENT OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL Year Ended December 31, 1980 With Comparative Actual Amounts For Year Ended December 31, 1979 1980 Variance- Favorable 1979 Budget Actual (Unfavorable) Actual Interest of investments $ 117,500 $ 291,574 $174,074 $ 166,055 Miscellaneous revenue: Rent income 11,750 16,471 4,721 16,359 Sale of property 26,750 7,340 (19,410) 19,726 Donations 12,000 26,200 14,200 44,400 Miscellaneous refunds 6,800 8,978 2 178 32,940 Total miscellaneous revenue 57,300 58,989 - I 89 113,425 Total revenues 4,459,019 4,790,100 331,081 4,402,893 Other financing sources: Transfers from- State Aid Fund 111,000 111,000 115,000 Revenue Sharing Fund 230,000 230,000 217,000 Liquor Fund 85,000 85,000 85,000 Teen Center Fund 583 583 Total other financing sources 426,000 426,583 583 417,000 Total revenues and other financing sources $4,885,019 $5,216,683 $331,664 $4,819,893 .. 54 EXHIBIT B-4 CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL Year Ended December 31 , 1980 With Comparative Actual Amounts For Year Ended December 31, 1979 1980 Variance Favorable 1979 Budget Actual (Unfavorable) Actual ._ General government: Mayor and council- Personal services $ 51,822 $ 43,917 $ 7,905 $ 33,616 Supplies and other charges 27,450 18,171 9,279 30,960 79,272 62,088 17,184 64,576 Planning commission- _ Personal services 24,283 17,763 6,520 20,486 Supplies and other charges 8,000 4,963 3,037 4,352 32,283 22,726 9,557 24,838 "' Other commissions- Personal services 20,808 10,971 9,837 4,667 Supplies and other charges 17,804 27,617 (9,813) 12,817 38,612 38,588 24 17,484 City manager- Personal services 111,207 95,258 15,949 98,182 -- Supplies and other charges 39,705 20,952 18,753 28,867 Capital outlay 3,082 12,551 (9,469) 14,762 153,994 128,761 25,233 141,811 Personnel- Personal services 21,464 13,112 8,352 23,710 Supplies and other charges 6,100 3,368 2,732 6,222 - Capital outlay 202 202 27,766 16,480 11,286 29,932 Legal- Personal services 2,792 2,792 14 Supplies and other charges 52,100 50,873 1 227 46,857 54,892 50,873 4,0 9 46,871 Elections- Personal services 22,245 22,179 66 3,949 -- Supplies and other charges 3,909 1,704 2,205 1,664 Capital outlay 2,000 2,000 28,154 23,883 4,271 5,613 - Accounting- Personal services 104,004 97,748 6,256 93,293 Supplies and other charges 52,850 46,955 5,895 44,365 Capital outlay 1,010 3,796 (2,786) 4,322 157,864 148,499 9,365 141,980 (Continued) 0 00 55 EXHIBIT B-4 Cont. CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL Year Ended December 31, 1980 With Comparative Actual Amounts For Year Ended December 31, 1979 1980 Variance Favorable 1979 Budget Actual (Unfavorable) Actual ' General government: (continued) Assessing- Personal services $ 115,717 $ 116,009 $ (292) $ 98,339 Supplies and other charges 12,890 10,308 2,582 10,356 ^' Capital outlay 425 425 129,032 126,317 2,715 108,695 Total general government 701,869 618,215 83,654 581,800 Public safety: Police- Personal services 1,137,247 1,071 ,529 65,718 892,087 Supplies and other charges 161,900 149,371 12,529 128,781 Capital outlay 59,422 53,598 5,824 64,296 -- 1,358,569 1,274,498 84,071 1,085,164 Fire- Personal services 282,138 305,563 (23,425) 249,958 Supplies and other charges 49,340 44,441 4,899 44,973 Capital outlay 17,650 13,624 4,026 19,309 349,128 363,628 (14,500) 314,240 -• Civil defense- Personal services 15,726 16,706 (980) 11,607 Supplies and other charges 6,279 1,674 4,605 3,883 ^' Capital outlay 4,000 22,005 18,380 3,625 19,490 Total public safety 1,729,702 1,656,506 73,196 1,418,894 Civic center: Personal services 48,629 56,188 (7,559) 43,312 ^' Supplies and other charges 69,700 69,698 2 42,869 Capital outlay 12,200 2,909 9,291 17,206 Total civic center 130,529 128,795 1,734 T03,387 --. Public works: Code enforcement- Personal services 146,806 121,226 25,580 100,774 Supplies and other charges 36,550 27,433 9,117 22,854 Capital outlay 512 183,356 148,659 34,697 124,140 ._ Planning- Personal services 73,991 72,303 1,688 64,936 Supplies and other charges 26,900 19,518 7,382 30,530 - Capital outlay 160 625 (465) 5,000 101,051 92,446 8,605 100,466 (Continued) 56 EXHIBIT B-4 CITY OF FRIDLEY, MINNESOTA Cont. - GENERAL FUND STATEMENT OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL Year Ended December 31, 1980 With Comparative Actual Amounts For Year Ended December 31, 1979 1980 - Variance Favorable 1979 Budget Actual (Unfavorable) Actual Public works: (continued) Engineering- b Personal services $ 76,159 $ 62,963 $ 13,196 $ 67,349 - Supplies and other charges 25,254 23,794 1,460 21,933 Capital outlay 175 1,209 (1,034) 5,779 101,588 87,966 13,622 95,061 -' Public works- Personal services 294,653 276,525 18,128 269,089 Supplies and other charges 393,020 339,708 53,312 264,154 - Capital outlay 92,466 58,718 33,748 96,005 780,139 674,951 105,188 629,248 Total public works 1,166,134 1,004,022 162,112 948,915 Parks and recreation: Naturalist- .- Personal services 50,578 50,576 2 46,657 Supplies and other charges 22,780 18,074 4,706 16,117 Capital outlay 1,325 404 921 2,824 74,683 69,054 5,629 65,598 Parks- - Personal services 240,222 251,300 (11,078) 216,499 Supplies and other charges 253,220 165,086 88,134 180,148 Capital outlay 112,992 83,823 29,169 169,038 606,434 500,209 106,225 565,685 Recreation- Personal services 243,636 184,165 59,471 190,257 Supplies and other charges 102,355 85,843 16,512 76,087 Capital outlay 1,380 1,380 2,197 347,371 270,008 77,363 268,541 Total parks and recreation 1,028,488 839,271 189,217 899,824 Debt service: - Principal 12,725 12,725 _, Interest 3,305 3,305 Total debt service 16,030 16,030 -0- -0- Reserve for contingencies 227,392 -0- 227,392 -0- Total expenditures 5,000,144 4,262,839 737,305 3,952,820 (Continued) 57 EXHIBIT B-4 CITY OF FRIDLEY, MINNESOTA Cont. GENERAL FUND STATEMENT OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL Year Ended December 31, 1980 With Comparative Actual Amounts For Year Ended December 31, 1979 1980 Variance Favorable 1979 Budget Actual (Unfavorable) Actual Other financing uses: Transfers to- Special Assessment Fund $ 92,132 $ 92,132 $ 43,349 STEP Fund 66,932 66,932 72,884 Capital Improvement Fund 500,000 500,000 Sears Fund 5,000 5,000 65,000 Garage Fund 26,700 Total other financing uses 664,064 664,064 -0- 207,933 Total expenditures and other financing uses $5,664,208 $4,926,903 $737,305 $4,160,753 58 SPECIAL REVENUE FUNDS Special revenue funds are used to account for revenues from specific sources. They are usually required by statute, ordinance or administrative action to finance particular activities of government. CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUNDS — COMBINING BALANCE SHEET December 31, 1980 with Comparative Totals For Year Ended December 31, 1979 Municipal State Revenue Teen Aid Sharing STEP Center Assets Cash (deficit) $ 26,808 $ 2,575 Investments, at cost 982,000 88,000 Due from other governments 450,442 54,114 — Total assets $1,459,250 $144,689 $ -0- $ -0- Liabilities ana Fund Balance Liabilities: Accounts payable -0- -0- -0- -0- Fund balances: Reserved for construction $ 447,820 Unreserved - undesignated 1,01 1,430 $144,689 Total fund balances 1,459,250 144,689 -0- -0- ._ Total liabilities and fund balances $1,459,250 $144,689 $ -0- $ -0- 60 -- EXHIBIT C-1 Community Home Totals Development Ownership 1980 1979 $(9,274) $ 20,109 $ 190,534 1,070,000 972,544 9,274 513,830 389,741 $ -0- $ -0- $1,603,939 $1,552,819 -0- -0- -0- $ 5,000 $ 447,820 313,123 1 ,156,119 1,234,696 -0- -0- 1,603,939 1,547,819 $ -0- $ -0- $1,603,939 $1,552,819 61 CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -- Year Ended December 31, 1980 With Comparative Totals For Year Ended December 31, 1979 r Municipal State Revenue \\A/-J Aid Sharing STEP Revenues: Intergovernmental revenue - Minnesota state aid $ 256,489 Revenue sharing $220,854 Selective Traffic Enforcement Program $14,445 Housing redevelopment Housing and Urban Development Other Total intergovernmental revenue 256,489 220,854 _ 4� ,445 Interest on investments 96,312 4,260 _ Total revenues 352,801 225,114 14,445 Other financing sources: Transfers from - General Fund 66,932 Special Assessment Fund "- Community Development Fund Total other financing sources -0- -0- 66,932 Total revenues and other financinj sources 352,801 225,114 81 ,377 Expenditures: Public safety 81 ,377 Public works Parks and recreation Total expenditures -0- -0- 81,377 Other financing uses: Transfers to - — General Fund 111,000 230,000 Special Assessment Fund 178,255 Home Ownership Fund Total other financing uses 289,255 230,000 -0- .. Total expenditures and other financiny uses 289,255 230,000 81,377 -- Excess (det iciency) of revenues and other financing sources over expenditures and other financing uses 63,546 (4,886) -0- Fund balance January 1 as previously ., reported 1,395,704 149,575 Adjustment: See note 11 Fund balance January 1 as restated 1,395,704 149,575 -0- Fund balance December 31 $1,459,250 $144,689 $ -0- 62 EXHIBIT C-2 Teen Community Home Totals Center Development Ownership 1980 1979 $ 256,489 $ 336,117 220,854 224,478 14,445 32,950 $ 8,396 8,396 67,983 $96,691 96,691 1,034 8,410 -0- 8,396 96691 596,875- 670,972 100,572 81,488 -0- 8,396 96,691 697,447 752,460 66,932 72,884 92,357 1,834 1,834 -0- -0- 1,834 68,766 165,241 -0- 8,396 98,525 766,213 917,701 81,377 76,599 13,629 93,415 107,044 107,843 9,493 -0- 13,629 93,415 188,421 193,935 $ 583 341,583 332,000 178,255 23,761 1,834 1,834 583 -177 -0- 521,672 355,761 583 15,463 93,415 710,093 549,696 (583) (7,067) 5,110 56,120 368,005 583 7,067 (5,110) 1,547,819 1,285,432 (105,618) 583 7,067 (5,110) 1,547,819 1,179,814 $ -0- $ -0- $ -0- $1,603,939 $1,547,819 63 EXHIBIT C-3 CITY OF FRIDLEY, MINNESOTA MUNICIPAL STATE AID SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1980 and 1979 -. 1980 1979 Assets Cash $ 26,808 $ 130,066 Investments, at cost 982,000 949,893 — Due from other governments 450,442 315,745 Total assets $1,459,250 $1,395,704 Fund Balance Fund balance: Reserved fo' construction $ 447,820 $ 313,123 Unreserved - undesignated 1,011,430 11082,581 Total fund balance $1,459,250 $1,395,704 . � � 64 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, 1980 With Comparative Actual Amounts for Year Ended December 31, 1979 1980 Variance- Favorable 1979 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental - Minnesota state aid $ 200,000 $ 256,489 $ 56,489 $ 336,117 Interest on investments 65,000 96,312 31,312 72,811 Total revenues 265,000 352,801 87,801 408,928 Other financing sources: Transfers from other funds 10,000 (10,000) 92,357 Total revenues and other financing sources 275,000 352,801 77,801 501,285 -- Other financing uses: Transfers to - General Fund 128,000 111,000 17,000 115,000 Special Assessment Fund 200,000 178,255 21,745 23,761 Total other financing uses 328,000 289,255 38,745 138,761 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses (53,000) 63,546 116,546 362,524 Fund balance January 1 as previously reported 1,395,704 1,395,704 1,138,798 Adjustment: See note 11 (105,618) Fund balance January 1 as restated 1,395,704 1,395,704 1,033,180 Fund balance December 31 $1,342,704 $1,459,250 $116,546 $1,395,704 t-` 65 EXHIBIT C-5 CITY OF FRIDLEY, MINNESOTA REVENUE SHARING SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1980 and 1979 1980 1979 Assets Cash $ 2,575 $ 92,883 Investments, at cost 88,000 Due from other governments 54,114 56,692 Total assets $144,689 $149,575 Fund Balance Fund balance: Unreserved - undesignated $144,689 $149,575 \L\ 66 EXHIBIT C-6 CITY OF FRIDLEY, MINNESOTA REVENUE SHARING SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUGGET AND ACTUAL Year Ended December 31, 1980 With Comparative Actual Amounts For Year Ended December 31, 1979 1980 Variance- Favorable 1979 Budget Actual (Unfavorable) Actual -- Revenues: Intergovernmental - Revenue sharing $223,712 $220,854 $(2,858) $224,478 — Interest on investments 4,000 4,260 260 8,677 Total revenues 227,712 225,114 (2,598) 233,155 Expenditures: — Other -0- -0- -0- 3 Other financing uses: Transfer to General Fund 230,000 230,000 -0- 217,000 Total expenditures and other financing uses 230,000 230,000 -0- 217,003 Excess (deficiency) of revenues over expenditures and other financing uses (2,288) (4,886) (2,598) 16,152 Fund balance January 1 149,575 149,575 -0- 133,423 Fund balance December 1 $147,287 $144,689 $(2,598) $149,575 t 67 EXHIBIT C-7 CITY OF FRIDLEY, MINNESOTA COMPARATIVE BALANCE SHEET December 31, 1980 and 1979 1980 1979 Assets Cash (deficit) $(27,701) Investments, at cost 20,478 Due from other governments 7,223 Total asset s $ -0- $ -0- Fund balance Fund balance ` $ -0- $ -0- k" ... 68 EXHIBIT C-8 CITY OF FRIDLEY, MINNESOTA STEP SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1980 With Comparative Actual Amounts for Year Ended December 31, 1979 1980 Variance- Favorable 1979 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental - Selective Traffic Enforcement Program $ 21,000 $14,445 $(6,555) $ 32,950 Other financing sources: Transfer from General Fund 100,000 66,932 (33,068) 72,884 Total revenues and other financing sources 121,000 81,377 (39,623) 105,834 Expenditures: Public safety - — Personal services 114,450 77,443 37,007 101,560 Supplies and other charges 6,400 3,671 2,729 6,205 Capital outlay 150 263 (113) 78 Total expenditures 121,000 81,377 39,623 0—f 7,843 Excess (deficiency) of revenues and other financing sources over expenditures -0- -0- -0- (2,009) Fund balance January 1 -0- -0- -0- 2,009 Fund balance December 31 $ -0- $ -0- $ -0- $ -0- 69 EXHIBIT C-9 CITY OF FRIDLEY, MINNESOTA TEEN CENTER SPECIAL REVENUE FUND ^" COMPARATIVE BALANCE SHEET December 31, 1980 and 1979 1980 1979 Assets _ Cash (deficit) $(1,463) Investments, at cost 2,046 Total assets $ -0- $ 583 Fund Balance Fund balance: Unreserved - undesignated $ -0- $ 583 -- 70 '� EXHIBIT C-10 CITY OF FRIDLEY, MINNESOTA TEEN CENTER SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year n —Becember 31, 1980 With Comparative Actual Amounts,)for Year Ended December 31, 1979 1980 Variance- Favorable 1979 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental $5,010 Charges for services - recreation 3,400 Total revenues -0- -0- -0- 8,410 Expenditures: _ Parks and recreation - Personal services 6,111 Supplies and other charges 3,382 Total expenditures -0- -0- -0- 9,493 Other financing uses: Transfer to General Fund $ 583 $(583) Excess (deficiency) of revenues over expenditures and other financing uses -0- (583) (583) (1,083) Fund balance January 1 $ 583 583 -0- 1,666 Fund balance December 31 $ 583 $ -0- $(583) $ 583 ` L\ J� 1 71 EXHIBIT C-11 CITY OF FRIDLEY, MINNESOTA COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND — COMPARATIVE BALANCE SHEET December 31, 1980 and 1979 1980 1979 Assets Cash (deficit) $(2,107) Investments, at cost 127 Due from other governments 9,047 — Total assets $ -0- $ 7,067 Fund Balance Fund balance: Unreserved - undesignated $ -0- $ 7,067 72 EXHIBIT C-12 CITY OF FRIDLEY, MINNESOTA COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year ember 31, 980 With Comparative Actual ount for Year r Ended December 31, 1979 1980 Variance- Favorable 1979 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental - Housing Redevelopment Authority $120,000 $(120,000) $ 5,000 Donations $ 8,396 8,396 62,983 Total revenues 120,000 8,396 (111,604) 67,983 Expenditures: Public works - Personal services 27,100 5,613 21,487 8,534 Capital outlay 277 Supplies and other charges 92,900 8,016 84,884 61,641 Total expenditures 120,000 13,629 106,371 70,452 Other financing uses: Transfers to Home Owners Fund 1,834 (1,834) Total expenditures and other financing uses 120,000 15,463 104,537 70,452 Excess (deficiency) of revenues over expenditures and other financing uses -0- (7,067) (7,067) (2,469) Fund balance January 1 7,067 7,067 -0- 9,536 Fund balance December 31 $ 7,067 $ -0- $ (7,067) $ 7,067 73 EXHIBIT C-13 CITY OF FRIDLEY, MINNESOTA HOME OWNERSHIP SPECIAL REVENUE FUND COMPARATIVE BALANCE SHEET December 31, 1980 and 1979 —• 1980 1979 Assets Cash (deficit) $(9,274) $(1,144) Due from other governments 9,274 1,034 — Total assets $ -0- $ (110) Liabilities and Fund Balance Liabilities: Accounts payable $ 5,000 Fund balance: Unreserved - undesignated (5,110) -, Total liabilities and fund balance $ -0- $ (110) — 74 EXHIBIT C-14 CITY OF FRIDLEY, MINNESOTA HOME OWNERSHIP SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 1980 -� With Comparative Actual Amounts for Year Ended December 31, 1979 1980 Variance- Favorable 1979 Budget Actual (Unfavorable) Actual Revenues: Intergovernmental - ^, Housing and Urban Development $70,550 $71,491 $ 941 $ 1,034 Housing Redevelopment Authority 25,200 25,200 Total revenues 70,550 —NTOT 26,141 1,034 Other financing sources: Transfer from Community Development Fund -0- 1,834 1,834 -0- .. Total revenues and other financing sources 70,550 98,525 27,975 1,034 Expenditures: Public works - Personal services 5,348 (5,348) 666 Supplies and other charges 1,575 (1,575) 5,478 Capital outlay 70,550 86,492 (15,942) Total expenditures 70,550 93,415 (22,865) 6,T44 ._ Excess (deficiency) of revenues and other financing sources over expenditures -0- 5,110 5,110 (5,110) Fund balance January 1 (5,110) (5,110) -0- -0- Fund balance December 31 $(5,110) $ -0- $(5,110) $(5,110) " 75 DEBT SERVICE FUNDS Debt service funds are used to account for the payment of principal and interest on all general obligation debt other than that payable from special assessments and debt issues for and serviced primarily by a governmental enterprise. EXHIBIT 1)-1 CITY OF FRIDLEY, MINNESOTA DEBT SERVICE FUND COMPARATIVE BALANCE SHEET December 31, 1980 and 1979 1980 1979 Assets Cash $11,280 $ 1 ,851 Investments, at cost 58,200 62,532 Taxes receivable: Un remi tted 408 378 Delinquent 1,205 1,066 Less: Estimated uncollectable (1,205) (1,066) Total ass€gists $69,888 $64,761 Liabilities and Fund Balance Liabilities: Deferred re%enue $ 408 $ 378 Fund balance: Reserved for debt service 69,480 64,383 Total liabilities and fund balance $69,888 $64,761 77 EXHIBIT D-2 CITY OF FRIDLEY, MINNESOTA DEBT SERVICE FUND COMPARATIVE STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE Years Ended December 31, 1980 and 1979 1980 1979 Revenues: ._ Taxes $30,952 $34,300 Intergovernmental - Homestead credit 7,826 5,781 Interest on investments 3,858 2,792 Total revenues 42,636 42,873 Expenditures: Debt service - Principal retirement 30,000 30,000 Interest and fiscal charges 7,539 8,561 Total expenditures 37,539 38,561 Excess of revenues over expenditures 5,097 4,312 -- Fund balance January 1 64,383 60,071 Fund balance December 31 $69,480 $64,383 (-) 78 CAPITAL PROJECTS FUNDS Capital project funds are used to account for financial resources used for the acquisition of capital facilities and equipment by the City. CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET December 31, 1980 With Comparative Totals For December 31, 1979 �--� Islands North Capital of North Park Improvement Peace Park Visitation Assets Cash (deficit) $ 26,582 $2,402 $619 $15,327 Investments, at cost 849,300 35,700 Taxes receivables Delinquent 1,246 Less: Estimated uncollectable taxes (1,246) Due from other governments Total assets $875,882 $2,402 $619 $51,027 Liabilities ano Fund Balance Liabilities: Accounts payable $ 843 $619 $ 7,367 Contracts payable 23,993 Total liabilities -0- 843 619 31,360 Fund balances: Reserved for encumbrances 34,760 Reserved for fixed asset replacement $875,882 "" Unreserved - undesignated 1,559 (15,093) Total fund balances 875,882 1,559 -0- 19,667 Total liabilities and fund balances $875,882 $2,402 $619 $51,027 80 -- EXHIBIT E-1 University Locke Avenue Total s Park Sears Bike/Walk 1980 1979 $ 8,938 $ ( 1,786) $ 52,082 $(98,445) 69,400 954,400 326,976 1,246 983 ( 1,246) (983) 137,250 $ -0- $78,338 $ (1,786) $1,006,482 $365,781 $ 2,112 $ 7 $ 10,948 $ 4,911 23,993 -0- 2,112 7 34,941 4,911 20,847 55,607 59,117 875,882 76,226 (22,640) 40,052 301,753 -0- 76,226 (1,793) 971,541 360,870 $ -0- $78,338 $ ( 1,786) $1,006,482 $365,781 81 CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES —» Year Ended December 31, 1980 With Comparative Totals For Year Ended December 31, 1979 North Park Capital Islands North Visitation Improvement of Peace Park Center -- Revenues: Taxes - Current ad valorem taxes $ 34,987 Delinquent ad valorem taxes 723 Total taxes 35,710 -0- -0- -0- ^ Intergovernmental - Homestead credit 9,147 State grant Metro council $341,231 Islands of peace foundation $1,300 Total intergovernmental 9,147 300 -0- 341,231 Interest on investments 31,396 307 $ 522 Miscellaneous revenue - Sale of property Donations 2,700 Other 1,330 Total miscellaneous -0- 4,030 -0- -0- Total revenues 76,253 5,637 522 341,231 Other financing sources: Transfers from - General Fund 500,000 North Park Fund 2,703 Revolving Fund Total other financing sources 500,000 -0- -0- 2,703 Total revenues and other financing sources 576,253 5,637 522 343,934 ---------- 82 "" EXHIBIT E-2 University Locke Avenue Total s Park Sears Bike/Walk 1980 1979 $ 34,987 $ 36,501 723 523 -0- -0- -0- 35,710 37,024 9,147 6,291 $55,783 55,783 206,625 341,231 30,000 1,300 -0- 55,783 -0- 407,461 242,916 $ 440 3,867 36,532 23,012 12,000 14,700 90,454 10,650 11,980 58,853 050 ,6 X2,000 -0- 26,680 150,274 11,090 71,650 -0- 506,383 453,226 5,000 505,000 91,700 2,703 - -0- 5,000 -0- 507,703 25,000 116,700 11,090 76,650 -0- 1,014,086 569,926 83 CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECT FUNDS ^ COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES (Continued) Year Ended December 31, 1980 With Comparative Totals For Year Ended December 31, 1979 North Park Capital Islands North Visitation Improvement of Peace Park Center Expenditures: Capital projects - Construction contracts $330,356 Engineering and other $7,682 9,686 Interest expense 1,676 Total expencitures -0- 7,682 -0- 341,718 Other financing uses: "^ Transfers to North Park Fund $2,703 Total expencitures and other .., financing uses -0- 7,682 2,703 341,718 Excess (deficiency) of revenue and other financing sources over expenditures and other financing uses $576,253 (2,045) (2,181 ) 2,216 Fund balance January 1 as previously reported 299,629 3,604 2,181 17,451 Adjustment: See note 11 Fund balance January 1 as restated 299,629 3,604 2,181 17,451 Fund balance at December 31 $875,882 $1,559 $ -0- $ 19,667 84 — EXHIBIT E-2 Cont. University Locke Avenue Total s Park Sears Bike/Walk 1980 1979 $17,688 $21,539 $ 369,583 $ 89,631 5,281 5,011 $ 1,793 29,453 368,091 1,676 4,996 22,969 26,550 1,793 400,712 462,718 2,703 22,969 26,550 1,793 403,415 462,718 (11,879) 50,100 -0- 610,671 107,208 11,879 26,126 -0- 360,870 253,054 608 11,879 26,126 -0- 360,870 253,662 $ -0- $76,226 $( 1,793) $ 971,541 $360,870 85 SPECIAL ASSESSMENT FUNDS Special assessment funds are set up to account for the construction of improvements or provision of services which are to be financed, wholly or in part, by special assessments levied against the benefited property. EXHIBIT F-1 CITY OF FRIDLEY, MINNESOTA SPECIAL ASSESSMENT FUNDS COMBINING BALANCE SHEET December 31, 1980 With Comparative Totals For December 31, 1979 Special Totals Assessment Revolving 1980 1979 Assets Cash (deficit) $ (113,460) $ 21 ,122 $ (92,338) $ (124,774) Investments, at cost 4,838,400 455,700 5,294,100 5,256,803 Receivables: Accounts 600 600 Special assessments Deferred 3,456,345 86,708 3,543,053 3,223,661 Delinquent 397,851 6,161 404,012 379,149 Due from other governments 25,000 25,000 2,880 Total assets $8,604,736 $569,691 $9,174,427 $8,737,719 Liabilities and Fund Balance Liabilities: Accounts payable $ 107 $ 107 $ 19,006 Deposits payable $124,595 124,595 143,141 Bonds payable 5,487,500 5,487,500 5,789,750 Total liabilities 5,487,607 124,595 5,612,202 5,951,897 Fund balances: Reserved for encumbrances 123,108 123,108 Reserved for debt service 3,643,640 3,643,640 2,785,822 Unreserved - undesign ated (649,619) 445,096 (204,523) Total fund balance 3,117,129 445,096 3,562,225 2,785,822 Total liabilities and fund balance $8,604,736 $569,691 $9,174,427 $8,737,719 87 EXHIBIT F-2 CITY OF FRIDLEY, MINNESOTA SPECIAL ASSESSMENT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Year Ended December 31, 1980 With Comparative Totals For Year Ended December 31, 1979 Special Totals Assessments Revolving 1980 1979 Revenues: Special assessments $1,008,747 $ 22,382 $1,031,129 $ 598,618 Intergovernmental - local 25,000 25,000 2,880 Interest on investments 477,239 43,951 521,190 389,658 Interest and penalties on assessments 250,725 5,806 256,531 22,189 Interest on assessments 19,863 157 20,020 240,897 Other 24,043 24,043 25,101 Total revenues 1,805,617 72,296 1,877,913 1,279,343 Other financing sources: Transfers from - General Fund 92,132 92,132 43,349 State Aid Fund 178,255 178,255 23,761 Public Utility Funa 9,141 9,141 5,301 ..„ Bond Sales 2,100,139 2,100,139 1,145,000 Total other financing sources 2,379,667 -0- 2,379,667 1,217,411 Total revenues and other .., financing sources 4,185,284 72,296 4,257,580 2,496,754 Expenditures: -. Capital projects 1,026,235 1,026,235 1,061 ,495 Debt service - interest and fiscal charges 271,352 271,352 266,228 Interest 25,805 25,805 -, Other 7,468 9,287 16,755 11,756 Total expenditures 1,330,860 9,287 1,340,147 1,339,479 Other financing uses: 1 Transfers to - Public Utility Fund ( 21,030 21,030 State Aid Fund 92,357 Capital Improvement Fund \ 25,000 Bonds issued 2,120,000 2,120,000 1,145,000 Total other financing uses 2,120,000 21 ,030 2,141 ,030 1,262,357 Total expenditures and other financing uses 3,450,860 30,317 3,481 ,177 2,601 ,336 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses 734,424 41,979 776,403 (105,082) '" Fund balance January 1 as previously reported 3,448,384 403,117 3,851,501 3,335,268 „ Adjustment: See note 11 ( 1,065,679) ( 1,065,679) (444,364) Fund balance January 1 as restated 2,382,705 403,117 2,785,822 2,890,904 -, Fund balance December 31 $3,117,129 $445,096 $3,562,225 $2,785,822 88 ENTERPRISE FUNDS Enterprise funds are set up to account for the acquisition and operation of governmental facilities and services that are entirely or predominately self-supporting from user charges. The City of Fridley operates the following enterprise activities: 1 ) Liquor - Off-Sale 2) Public Utility - Sanitary Sewer and Water 3) Christenson Building - Rental Property EXHIBIT G-1 CITY OF FRIDLEY, MINNESOTA ENTERPRISE FUNDS - COMBINING BALANCE SHEET December 31, 1980 With Comparative Totals For December 31, 1979 Public Christenson Totals Liquor Utilities Building 1980 1979 Assets Current assets: Cash (deficit) $ 62,243 $ 198,347 $ 468 $ 261,058 $ (54,811) ._ Investments, at cost 477,000 2,224,300 5,700 2,707,000 2,468,774 Accounts receivable 304,860 2,015 306,875 304,194 Due from other governments 52,913 52,913 82,286 Due from other funds 28,588 28,588 41,313 _- Inventories, at cost 182,907 5,250 188,157 165,258 Prepaid expenses 9,880 54,169 64,049 47,438 Total current assets 732,030 2,868,427 8,183 3,608,640 3,054,452 - Long term receivable - Metropolitan Waste Control Commission 398,054 398,054 412,141 • Restricted assets: Cash (deficit) (760) (760) 9,333 Investments, at cost 210,400 210,400 229,182 Total restricted assets -0- 209,640 -0- 209,640 238,515 Property and equipment, at cost: Property and equipment 293,475 13,132,591 13,426,066 13,406,185 Less: Accumulated depreciation (82,062) ( 1,440,711) ( 1,522,773) (1,402,467) -- Net property and equipment 211,413 11,691,880 -0- 11,903,293 12,003,718 Total assets $943,443 $15,168,001 $8,183 $16,119,627 $15,708,826 Liabilities And Fund Equity Current liabilities: '- Accounts payable $ 81,405 $ 51,783 $ 713 $ 133,901 $ 23,855 Salaries payable 1,404 3,203 4,607 Bonds payable 61,875 61,875 106,964 -- Total current liabilities 82,809 116,861 713 200,383 130,819 Long term liabilities: Bonds payable (net of current - portion) 355,625 355,625 418,286 Deferred revenue 448,126 448,126 494,427 Total long term liabilities -0- 803,751 -0- 803,751 912,713 '- Total liabilities 82,809 920,612 713 1,004,134 1,043,532 Fund equity: Contibuted capital 10,166,680 10,166,680 10,166,680 Retained earnings - unreserved 860,634 4,080,709 7,470 4,948,813 4,498,614 __ Total fund equity 860,634 14,247,389 7,470 15,115,493 14,665,294 Total liabilities and fund equity $943,443 $15,168,001 $8,183 $16,119,627 $15,708,826 l 89 LA a EXHIBIT G-2 CITY OF FRIDLEY, MINNESOTA ENTERPRISE FUNDS .� COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Year Ended December 31, 1980 With Comparative Totals For Year Ended December 31, 1979 .., Public Christenson Totals Liquor Utilities Building 1980 1979 Sales and cost of sales: Sales $1,661,818 $1,661,818 $1,461,144 Cost of sales 1,328,573 1,328,573 1,185,282 "' Gross profit 333,245 -0- -0- 333,245 275,862 Operating revenues: Water sales and sewer rents $1,404,119 1,404,119 1,313,764 Connection permits 2,079 2,079 5,524 Miscellaneous revenues 71,511 71,511 78,112 Rental income $36,990 36,990 45,527 -- Total operating revenue -0- 1,477,709 36,990 1,514,699 1,442,927 Operating expenses: Personal services 140,577 342,933 1,315 484,825 428,778 Supplies and other charges 69,966 920,947 39,573 1,030,486 936,381 Depreciation 10,299 113,090 123,389 115,649 Total operating expenses 220,842 1,376,970 40,888 1,638,700 1,480,808 Operating income (loss) 112,403 100,739 (3,898) 209,244 237,981 Nonoperating revenues (expenses): .. Intergovernmental revenue 7,227 7,227 3,011 Interest on investment 42,706 251,071 927 294,704 207,691 Tap fees 1,125 1,125 2,137 Debt service Interest expense (19,341) (19,341) (24,273) Fiscal agent fees (167) (167) (209) Current value credit 13,613 13,613 13,033 Other revenue 16,176 729 16,905 16,462 Total non-operating revenues (expenses) 58,882 253,528 1,656 314,066 217,852 Net income (loss) 171,285 354,267 (2,242) 523,310 455,833 .. Transfers from (to): General Fund (85,000) (85,000) (85,000) .. Special Assessment Fund (9,141) (9,141) (5,301) Revolving Fund 21,030 21,030 Total transfers (85,000) 11,889 -0- (73,111) (90,301) Net change in retained earnings 86,285 366,156 (2,242) 450,199 365,532 Retained earnings January 1 774,349 3,714,553 9,712 4,498,614 4,133,082 Retained earnings December 31 $ 860,634 $4,080,709 $ 7,470 $4,948,813 $4,498,614 , 4 \-\\ 90 EXHIBIT G-3 CITY OF FRIDLEY, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION - Year Ended December 31, 1980 With Comparative Totals For Year Ended December 31, 1979 Public Christenson Totals Liquor Utility Building 1980 1979 - Sources of working capital: Operations: Net income ( loss) for the year $86,285 $366,156 $(2,242) $450,199 $366,950 Items not requiring working - capital - depreciation 10,299 113,090 123,389 115,649 Working capital provided by operations 96,584 479,246 (2,242) 573,588 482,599 Long term receivable 14,087 14,087 13,488 Net decrease in restricted assets 28,875 28,875 24,322 - Total sources of working capital 96,584 522,208 2,242) 66 16,550 520,409 Uses of working capital: Acquisition of fixed assets 5,721 17,243 22,964 47,367 - Decrease in long term bonds payable 62,661 62,661 106,962 Decrease in deferred revenue 46,301 46,301 5,429 Adjustment of prior years interest 133 - Total uses of working capital 5,721 2266,205 -0- 131,926 159,891 Net increase (decrease) in working capital $90,863 $396,003 $(2,242) $484,624 $360,518 Elements of net increase (decrease) in working capital: - Cash $64,701 $250,640 $ (185) $315,156 $(65,998) Investments 83,924 158,374 (4,072) 238,226 272,437 Receivables (1,413) 2,079 2,015 2,681 10,045 _ Inventory 21,498 1,401 22,899 5,907 Prepaid expenses 4,717 11,894 16,611 6,330 Due from other governments (29,373) (29,373) 9,474 Due from other funds (12,725) (12,725) 41,313 - Accounts payable (81 ,160) (28,173) (109,333) 74,589 Salaries payable (1,404) (3,203) (4,607) Sales tax payable 6,145 - Bonds payable 45,089 45,089 1 Deferred revenue 275 Net increase (decrease) in _ working capital $90,863 $396,003 $(2,242) $484,624 $360,518 - 0 ---- \ L\ C\-)6 (A--- 91 EXHIBIT G-4 CITY OF FRIDLEY, MINNESOTA LIQUOR ENTERPRISE FUND — COMPARATIVE BALANCE SHEET December 31, 1980 and 1979 1980 1979 Assets Current assets: Cash (deficit) $ 62,243 $ (2,458) Investments, at cost 477,000 393,076 Accounts receivable 1,413 Inventories at cost 182,907 161,409 Prepaid expenses 9,880 5,163 Total current assets 732,030 558,603 -. Property and equipment, at cost: Land and buildings 198,641 198,641 Furniture, fixtures and equipment 78,372 77,967 Signs and automotive 16,462 14,229 293,475 290,837 Less: Accumulated depreciation (82,062) (74,846) Net property and equipment 211,413 215,991 Total assets $943,443 $774,594 Liabilities and Fund Equity Current liabilities: Accounts payable $ 81,405 $ 245 Salaries payable 1,404 Total liabilities 82,809 245 Fund equity: Retained earnings - unreserved 860,634 774,349 Total liabilities and fund equity $943,443 $774,594 a 92 EXHIBIT G-5 CITY OF FRIDLEY, MINNESOTA - LIQUOR ENTERPRISE FUND COMPARATIVE STATEMENT OF REVENUES EXPENSES AND CHANGES IN RETAINED EARNINGS Years Ended December 31, 1980 and 1979 - 1980 1979 Sales and cost of sales: Sales $1,661,818 $1,461,144 Cost of sales 1,328,573 1,185,282 -' Gross profit 333,245 275,862 Operating expenses: _ Selling: Personal services 98,805 90,268 Supplies and other charges 5,086 5,000 Total selling expense 103,891 95,268 - Overhead: Supplies and other charges 51,545 54,663 - Depreciation 10,299 8,312 Total overhead expenses 61 ,844 62,975 Administrat ive: - Personal services 41,772 38,059 Supplies and other charges 13,335 6,896 Total administrative 55,107 44,955 Total operating expenses 220,842 203,198 Operating income 112,403 72,664 Non-operating revenues: Interest on investments 42,706 29,813 Other revenue 16,176 14,939 Total non-operating revenues 58,882 44,752 Net income 171,285 117,416 Transfers to the General Fund (85,000) (85,000) Net change in retained earnings 86,285 32,416 Retained earnings January 1 774,349 741,933 - Retained earnings December 31 $ 860,634 $ 774,349 _ C�\C-__. A 2- 6 _ - 93 EXHIBIT G-6 CITY OF FRIDLEY, MINNESOTA LIQUOR ENTERPRISE FUND COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION Years Ended December 31, 1980 and 1979 1980 1979 Sources of working capital: — Operations: Net income for the year $86,285 $32,416 Items not requiring working capital - depreciation 10,299 8,312 — Total sources of working capital 96,584 40,728 Uses of working capital: Acquisition of fixed assets 5,721 16,030 Decrease in deferred income 1,415 Adjustment of prior years interest 133 Total uses of working capital 5,721 7-T ,578 Net increase in working capital $90,863 $23,150 Elements of net increase (decrease) in working capital: Cash $64,701 $(8,917) Investments 83,924 (58,171) Receivables (1,413) (1,729) Inventory 21,498 5,681 Prepaid expenses 4,717 5,163 Accounts payable (81,160) 74,978 Salaries payable (1,404) Sales tax payable 6,145 Net increase in working capital $90,863 $23,150 ■ 94 '� CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITY ENTERPRISE FUND COMPARATIVE BALANCE SHEET December 31. 1980 and 1979 ^„ 1980 1979 Assets -, Current assets: Cash (deficit) $ 198,347 $ (52,293) Investments, at cost 2,224,300 2,065,926 Accounts receivable 304,860 302,781 Due from other governments 52,913 82,286 Due from other funds 28,588 41 ,313 Inventories at cost 5,250 3,849 Prepaid expense 54,169 42,275 Total current assets 2,868,427 2,486,137 .. Long-term receivable - Metropolitan Waste Control Commission 398,054 412,141 Restricted assets: Cash (deficit) (760) 9,333 Investments, at cost 210,400 229,182 Total restricted assets 209,640 238,515 ^' Property and equipment: Land and improvement 154,881 154,881 .. Buildings 754,608 754,608 Machinery and equipment 1,932,513 1,915,270 Other improvements 123,909 123,909 Water and sewer lines 10,166,680 10,166,680 13,132,591 13,115,348 Less: Accumulated depreciation ( 1,440,711) ( 1,327,621) Net property and equipment 11,691 ,880 11,787,727 .. Total assets $15,168,001 $14,924,520 .1 �� v 96 EXHIBIT G-7 —' 1980 1979 Liabilities And Fund Equity Current liabilities: Accounts payable $ 51,783 $ 23,610 Salaries payable 3,203 Bonds payable 61,875 106,964 Total current liabilities 116,861 130,574 Long term liabilities: Bonds payable (net of current position) 355,625 418,286 Deferred revenue 448,126 494,427 Total long term liabilites 803,751 912,713 Total liabilities 920,612 1,043,287 Fund equity: Contribution capital 10,166,680 10,166,680 Retained earnings - unreserved 4,080,709 3,714,553 Total fund equity 14,247,389 13,881,233 Total liabilities and fund equity $15,168,001 $14,924,520 0 97 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, 1980 and 1979 -- 1980 1979 Operating revenues: Water sales and sewer rents $1,404,119 $1,313,764 Connection permits 2,079 5,524 Miscellaneous revenues 71,511 78,112 Total operating revenues 1,477,709 1,397,400 Operating expenses: Personal services 342,933 299,265 Supplies and other charges 920,947 830,610 Depreciation 113,090 107,337 ., Total operating expenses 1,376,970 1,237,212 Operating income 100,739 160,188 Non-operating revenues (expenses) : Intergovernmental revenue - federal grant 7,227 3,011 Interest on investments 251,071 177,878 Tap fees 1,125 2,137 Debt service - Interest expense (19,341) (24,273) Fiscal agent fees (167) (209) Current value credit 13,613 13,033 Total non-operating revenues (expenses) 253,528 171,577 Net income 354,267 331,765 Transfers from (to) : Special Assessment Fund (9,141) (5,301) Revolving Fund 21,030 Total transfers 11,889 (5,301 ) Net change in retained earnings 366,156 326,464 Retained earnings January 1 3,714,553 3,388,089 Retained earnings December 31 $4,080,709 $3,714,553 98 EXHIBIT G-9 CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITY ENTERPRISE FUND -' COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION Years Ended December 31, 1980 and 1979 1980 1979 Sources of working capital: Operations: Net income $366,156 $326,464 Items not requiring working capital - depreciation 113,090 107,337 Working capital provided by operations 479,246 433,801 Long term receivable 14,087 13,488 Net decrease in restricted assets 28,875 24,322 Total sources of working capital 522,208 471,6 Uses of working capital: Acquisition of fixed assets 17,243 31,337 Decrease in long term revenue bonds payable 62,661 106,962 Decrease in deferred revenue 46,301 4,014 Total uses of working capital 126,205 142,313 Net increase in working capital $396,003 $329,298 Elements of net increase (decrease) in working capital: Cash $250,640 $(57,148) Investments 158,374 320,836 Receivables 2,079 15,349 Inventory 1,401 226 Prepaid expenses 11,894 1,167 Due from other governments (29,373) 9,474 Due from other funds (12,725) 41,313 Accounts payable (28,173) ( 1,920) Salaries payable (3,203) Bonds payable 45,089 1 Net increase in working capital $396,003 $329,298 L V`I XI 99 EXHIBIT G-10 CITY OF FRIDLEY, MINNESOTA CHRISTENSON BUILDING ENTERPRISE FUND COMPARATIVE BALANCE SHEET December 31, 1980 and 1979 Assets 1980 1979 Cash (deficit) $ 468 $ (60) Investments, at cost 5,700 9,772 Accounts receivable 2,015 600 Less: Allowance for uncollectable accounts (600) Total assets $8,183 $9,712 Liabilities and Fund Equity Liabilities: Accounts payable $ 713 Fund equity: -� Retained earnings - unreserved 7,470 $9,712 Total liabilities and fund equity $8,183 $9,712 100 EXHIBIT G-U CITY OF FRIDLEY, MINNESOTA CHRISTENSON BUILDING ENTERPRISE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS Years Ended December 31, 1980 and 1979 1980 1979 Operating revenues: Rent $36,990 $45,527 Operating expenses: Personal services 1,315 1,186 Supplies and other charges 39,573 39,212 Total operating expenses 40,888 40,398 Operating income (loss) (3,898) 5,129 Non-operating revenues: Interest on investments 927 Other income 729 1,523 Total non-operating revenues 1,656 1,523 Net income (loss) (2,242) 6,652 Retained earnings January 1 9,712 3,060 Retained earnings December 31 $ 7,470 $ 9,712 CA1A \.3\ 101 — EXHIBIT G-12 CITY OF FRIDL EY, MINNESOTA CHRISTENSON BUILDING ENTERPRISE FUND COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION — Years Ended December 31, 1980 and 1979 1980 1979 Sources of working capital: Operations: Net income (loss) $(2,242) $8,070 Elements of net increase (decrease) in working capital: Cash $ (185) $ 67 Investments (4,072) 9,772 Receivables 2,015 (3,575) Accounts payable 1,531 Deferred revenue 275 ,^ Net increase (decrease) in working capital $(2,242) $8,070 102 INTERNAL. SERVICE FUNDS Internal service funds are set up to account for goods and services provided by designated departments on a cost reimbursement or fee basis to other departments and agencies within the City. EXHIBIT H-1 CITY OF FRIDLEY, MINNESOTA EMPLOYEE BENEFITS INTERNAL SERVICE FUND COMPARATIVE BALANCE SHEET December 31, 1980 AND 1979 1980 1979 Assets Cash $410,531 $ -0- Liabilities and Fund Equity Liabilities: �- Accounts payable $ 2,953 Salaries payable 155 Vacation payable 207,628 Total liabilities 210,736 -0- Fund equity: Retained earnings - Reserved for employee benefits 199,795 Total liabilities and fund equity $410,531 $ -0- - 103 EXHIBIT H-2 CITY OF FRIDLEY, MINNESOTA — EMPLOYEE BENEFITS INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS -- Years Ended December 31, 1980 and 1979 1980 1979 ., Operating revenues: Charges for services $199,795 — Net income (loss) 199,795 — Retained earnings January 1 -0- $ -0- Retained earnings December 31 $199,795 $ -0- i \� I ., vi 104 EXHIBIT H-3 CITY OF FRIDLEY, MINNESOTA EMPLOYEE FRINGE BENEFITS INTERNAL SERVICE FUND COMPARATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION Years Ended December 31, 1980 and 1979 1980 1979 _ Sources of working capital: Operations: Net income $199,795 $ -0- Elements of net increase (decrease) in working capital: Cash $410,531 Accounts payable (2,953) Salaries payable (155) Leave payable (207,628) Net increase in working capital $199,795 $ -0- 105 TRUST AND AGENCY FUNDS Trust and agency funds are set up to account for the resources held by the City as a trustee or agent for other funds or entities. EXHIBIT I-1 CITY OF FRIDLEY, MINNESOTA TRUST AND AGENCY FUND COMPARATIVE BALANCE SHEET December 31, 1980 and 1979 1980 1979 Assets Cash $ 75 $17,254 Investments, at cost 11,500 Total assets $11,575 $17,254 Liabilities and Fund Balance Liabilities: Deposits payable $ 9,081 $16,243 Fund balance: Unreserved - undesignated 2,494 1,011 Total liabilities and fund balance $11,575 $17,254 \2/5 Gip 107 EXHIBIT I-2 CITY OF FRIDLEY, MINNESOTA TRUST AND AGENCY FUND COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE Years Ended December 31, 1980 and 1979 1980 1979 Revenues: Fees $13,304 ., Interest on investments $1,483 1,061 Total revenue 1,483 14,365 -� Expenditures: Other -0- 13,354 Excess of revenues over expenditures 1,483 1,011 Fund balance, January 1 1,011 -0- Fund balance, December 31 $2,494 $ 1,011 -�r 108 GENERAL FIXED ASSETS GROUP OF ACCOUNTS General fixed asset group of accounts are set up to account for long-lived assets not accounted for in an enterprise, trust or intergovernmental service fund. • • EXHIBIT J-1 CITY OF FRIDLEY, MINNESOTA COMPARATIVE STATEMENT OF GENERAL FIXED ASSETS December 31, 1980 and 1979 1980 1979 General fixed assets: Land $ 1,656,778 $ 1,656,320 Building 1,2 00,801 1,2 00,801 Improvements other than building 12,311,446 11,709,629 — Furniture, fixtures and office equipment 295,200 273,957 Machinery and equipment 1,320,247 1,188,030 Specialized equipment 86,867 59,043 Construction in progress 1,669,625 1,639,954 Total general fixed assets $18,540,964 $17,727,734 '— Investment in general fixed assets from: Special assessments $11,952,853 $11,716,292 State aid 302,497 302,497 General Fund 3,842,148 3,638,283 Other funds 522,174 510,174 Liquor Fund 15,421 15,421 Contributions 676,969 676,969 General obligation bonds 856,597 856,597 Public Utility Fund 2,522 2,522 Grants 369,783 8,979 Total investment in general fixed assets $18,540,964 $17,727,734 a 109 CITY OF FRIDLEY, MINNESOTA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY Year Ended December 31, 1980 Total Land Buildings General government City manager $ 39,882 Accounting 61,969 Assessing 7,379 Elections 24,681 Planning 18,271 Civic center 716,048 $ 18,448 $ 664,690 Total general government 868,230 18,448 664,690 Public safety Police protection 244,869 Fire protection 357,365 70,281 Inspectional services 2,041 -- Civil defense 29,069 Total public safety 633,344 -0- 70,281 Public works Engineering 53,562 Street improvements 7,376,723 5,103 Water, sewer and storm sewer 4,886,018 Traffic signal 101,561 City garage 473,860 97,940 333,114 Total public works 12,891,724 103,043 333,114 Parks/Naturalist Parks 2,403,607 1,527,867 119,702 Naturalist 74,434 7,420 13,014 Total parks/naturalist 2,478,041 1,535,287 132,716 Total general fixed assets allocated to functions $16,871 ,339 $1,656,778 $1,200,801 Construction in progress 1,669,625 Total fixed assets $18,540,964 91 110 EXHIBIT J-2 Furniture Other and Specialized Improvements Machinery Equipment Equipment ^- $ 7,344 $ 32,247 $ 291 59,961 2,008 7,379 -. 24,681 5,850 12,421 336 31,279 1,295 -0- 13,530 167,968 3,594 198,385 34,707 11,777 $ 8,221 241,255 16,614 20,994 1,626 415 26,980 2,089 8,221 468,246 53,410 33,186 26,931 25,211 1,420 6,857,445 514,175 4,886,018 101,561 -. 8,107 21,701 12,795 203 11,853,131 562,807 38,006 1,623 -- 418,107 262,033 27,434 48,464 31,987 13,631 8,382 450,094 275,664 35,816 48,464 $12,311,446 $1,320,247 $295,200 $86,867 111 EXHIBIT J-3 CITY OF FRIDLEY, MINNESOTA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY Year Ended December 31, 1980 General General Fixed Fixed Assets Assets 1/1/80 Additions Deductions 12/31/80 Function and activity General government -' City manager $ 27,331 $ 12,551 $ 39,882 Accounting 58,173 3,796 61,969 Assessing 7,379 7,379 Elections 24,681 24,681 Planning 17,646 625 18,271 Civic center 713,139 2,909 716,048 ,. Total general government 848,349 19,881 -0- 868,230 Public safety Police protection 191 ,271 53,598 244,869 -, Fire protection 343,781 13,584 357,365 Inspection services 2,001 40 2,041 Civil defense 29,069 29,069 Total public safety 566,122 67,222 -0- 633,344 Public works Engineering 52,353 1,209 53,562 •• Street improvement 7,327,081 49,642 7,376,723 Water, sewer and storm sewer 4,333,716 552,302 4,886,018 Traffic signal 101,561 101,561 City garage 464,784 9,076 473,860 '. Total public works 12,279,495 612,229 -0- 12,891,724 Parks/Naturalist „_, Parks 2,319,784 83,823 2,403,607 Naturalist 74,030 404 74,434 Total parks/naturalist 2,393,814 84,227 -0- 2,478,041 Construction in progress 1,639,954 1,654,988 $1,625,317 1,669,625 Total general fixed assets $17,727,734 $2,438,547 $1,625,317 $18,540,964 \,\/)3 \‘Y\- --. \ 112 GEN ERt',L LONG TERM DEBT ACCOUNT GROUP General long-term debt group of accounts 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 ana 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, 1980 and 1979 1980 1979 Amount available to be provided for the payment of general long-term debt Amount available in general debt _ service fund $ 69,480 $ 64,383 Amount to be provided by future taxes 200,459 272,766 Total available and to be provided $269,939 $337,149 General long-term debt payable General long-term debt payable: Serial bonds $200,000 $230,000 Contracts-city garage and garage addition 41,351 65,836 Due to public utility fund 28,588 41,313 Total general long-term debt payable $269,939 $337,149 113 STATISTICAL SECTION a TABLE 1 CITY OF FRIDLEY, MINNESOTA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) LAST TEN FISCAL YEARS General Civic Public Public Parks and Debt Year Government Center Safety Works Recreation Service Total 1971 $255,423 $ 53,809 $ 621,908 $ 418,167 $ 341,533 $1,690,840 -' 1972 293,510 56,562 652,201 453,682 351,739 1,807,694 1973 310,866 62,076 848,448 495,006 407,943 2,124,339 1974 357,012 61,449 893,201 675,381 493,160 2,480,203 1975 436,032 77,753 1,016,774 755,904 582,982 2,869,445 1976 476,286 80,067 1,146,181 879,626 699,304 3,281,464 1977 484,663 109,647 1,239,730 928,742 839,151 3,601,933 1978 572,381 102,444 1,446,302 1,028,594 822,095 3,971,816 1979 581,800 103,387 1,495,493 1,056,758 909,317 38,561 4,185,316 1980 618,215 128,795 1,737,883 1,111,066 839,271 $53,569 4,488,799 Note (1) Includes General, Special Revenue, and Debt Service Funds LJ 115 TABLE 2 CITY OF FRIDLEY, MINNESOTA GENERAL REVENUES BY SOURCE (1) LAST TEN FISCAL YEARS ., Inter- Charges General Licenses, govern- for '1 Property Permits mental Current Other Total Year Tax and Fines Revenue Services Revenue Revenue 1971 $ 955,838 $120,061 $ 56,254 $ 395,384 $ 67,012 $1,549,548 1972 973,103 192,456 47,761 541,938 90,056 1,845,314 1973 1,087,173 157,703 57,100 502,955 93,012 1,897,943 1974 1,344,632 179,142 58,243 601,266 112,568 2,295,851 1975 1,619,966 174,630 59,936 648,872 115,753 2,619,157 1976 1,762,205 210,904 63,200 811,406 179,736 3,027,451 1977 1,703,364 270,409 99,755 1,346,412 235,752 3,655,692 1978 1,846,370 265,657 104,069 1,576,630 285,311 4,078,037 1979 1,948,751 303,639 103,267 1,646,918 400,317 4,819,892 'n 1980 1,974,874 229,148 108,547 2,659,608 558,006 5,530,183 Note '^ (1 ) Includes General, Special Revenue, and Debt Service Funds r.. 116 TABLE 3 CITY OF FRIDLEY, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS — Collections Percentage Collection of Current of Levy of Prior Years Taxes Collected Years Taxes Ratio During During During of Total Year Total Fiscal Fiscal Fiscal Total Collections Collected Tax Levy Period Period Period Collections to Tax Levy — 1971 $1,215,586 $1,136,296 $93.48 $27,563 $1,163,859 $ .9574:1 1972 1,139,871 1,119,975 98.25 75,812 1,195,787 1.0491 :1 1973 1,260,386 1,245,095 98.79 30,551 1,275,646 1.0121:1 1974 1,389,672 1,365,737 98.28 18,974 1,384,711 .9964:1 1975 1,662,544 1,629,395 98.01 29,767 1,659,162 .9980:1 __ 1976 1,854,061 1,812,739 97.77 32,401 1,845,140 .9952: 1 1977 2,05 7,083 2,033,169 98.84 39,505 2,072,674 1.0076:1 — 1978 2,199,318 2,177,318 99.00 48,922 2,226,240 1.0122:1 1979 2,348,124 2,318,648 98.74 41,503 2,360,151 1.0051:1 1980 2,512,176 2,461,402 97.98 46,345 2,507,747 .9982:1 117 CITY OF FRIDLEY, MINNESOTA ASSESSED AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY LAST TEN FISCAL YEARS " Fiscal Period •� 1972 1973 1974 1975 Population 30,340 31,143 (2) 32,542 32,486 (3) Real property "' Estimated market value $224,892,331 $266,730,657 $294,415,529 $325,394,031 Assessor's limited market value $ 69,941,515 $242,991,629 $270,273,456 $288,949,935 Assessed value -� Homestead $ 5,295,419 $ 16,233,935 $ 16,582,864 $ 17,104,208 Excess and non-homestead 19,425,726 73,166,443 84,043,948 90,832,944 Area-wide allocation Tax-increment value "" Taxable value $ 24,721,145 $ 89,400,378 $100,626,812 $104,796,399 Personal Property -� Estimated market value - Taxable property $ 36,379,141 $ 15,796,166 $ 17,323,420 $ 18,183,599 Assessor's value - Taxable property $ 11,313,912 $ 14,390,307 $ 15,902,900 $ 16,147,000 " Taxable value - Taxable property $ 4,080,719 $ 6,187,860 $ 6,838,247 $ 6,943,210 Total real and personal property Estimated market value $261,271,472 $282,526,823 $311,738,949 $343,577,630 Limited market value $ 81,255,428 $257,381,936 $286,176,356 $305,096,935 Total taxable value $ 28,801,865 $ 95,588,238 $107,465,059 $111,739,609 Ratio of market value To limited market value .311:1** .911:1* .918:1* .888:1* To taxable value .110:1 .338:1 .345:1 .325:1 Per capita valuations Estimated market value $ 8,640 $ 9,072 $ 9,580 $ 10,576 Taxable value $ 952 $ 3,069 $ 3,302 $ 3,440 Note *Source - State of Minnesota Department of Revenue **Source - Anoka County Assessor's Office ***No census figure for 1978 is available, therefore, the 1977 figure is used. (1) 1972 and subsequent valuations reflect changes as provided for in Laws of 1971, Extra Session, Chapter 31, amended. Beginning with taxes levied in 1972, collectible in 1973, Minnesota assessed values tripled .. through elimination of the 33 1/3 ratio previously used to arrive at "adjusted" market values. Tax rates are one-third of past rates. 118 TABLE 4 Fiscal Period 1976 1977 1978 1979 1980 1981 31,570 31,940 31,940*** 33,450 32,664 30,228 $367,264,013 $405,285,288 $456,038,596 $474,610,022 $555,096,298 $632,523,959 $327,232,236 $363,541,172 $408,865,261 $458,973,683 $522,308,032 $ N/A (3) $ 17,644,329 $ 19,607,6 06 $ 20,453,732 $ 21,633,558 $ 24,392,539 $ 59,013,036 105,665,396 117,424,505 124,640,289 134,204,943 141,946,084 121,924,290 (4,541,034) (4,812,211) (6,271,738) (7,376,217) (8,858,508) 10,022,598 (954,050) 2,708,711 $118,768,691 $132,219,900 $138,822,283 $148,462,284 $156,526,065 $168,206,017 $ 18,073,064 $ 18,167,447 $ 19,340,803 $ 17,424,500 $ 17,899,900 $ 18,731,800 —' $ 16,103, 100 $ 16,296,200 $ 17,348,700 $ 17,424,500 $ 17,899,900 $ 18,731,800 $ 6,924,333 $ 7,007,366 $ 7,459,941 $ 7,492,535 $ 7,696,957 $ 8,054,674 $385,337,077 $423,452,735 $475,379,399 $492,034,522 $572,996,198 651,255 759 $343,335,336 $379,837,372 $426,213,961 $476,398,183 $540,207,932 N/A 3 -- $125,693,024 $139,227,266 $146,282,224 $155,954,819 $164,223,022 76,260,69 .891 :1* .897:1* .897:1* .968:1 .943:1 N/A .326:1 .329 :1 .308:1 .317 :1 .287 :1 .271 :1 $ 12,206 $ 12,689 $ 14,884 $ 14,710 17,542 $ 21,545 $ 3,981 $ 4,359 $ 4,580 $ 4,662 $ 5,028 $ 5,831 (2) Property values include net amount allocated pursuant to Laws of 1971, Extra Session, Chapter 23, from Area-Wide "Pool ." Beginning with taxes levied in 1974, collectible 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 minus the net loss to the Metro Tax Pool. (3) In 1980 Limited Market Value was omitted as a consideration in determining taxable value. 119 CITY OF FRIDLEY, MINNESOTA STATEMENT OF VALUATIONS AND LEVIES BY CLASSES OF PROPERTY DECEMBER 31, 1980 Assessed Valuation Assessed Before Valuation Assessed Contribution Contribution Value Class of to Metro Tax to Metro Tax Received from Property Pool Pool Metro Pool Commercial $ 27,871,336 $ (5,737,684) Industrial 48,079,831 (9,897,870) -, F.M.C. #85 4,326,531 (890,674) Gas 1,289,742 (265,511) Electric 2,438,401 (501 ,977) P.U.* 405,713 (83,521) Vacant Land 1,237,920 Apartments 21,691,882 Residential 81,650,644 Distribution ,' \� $7,354,639 (1) Totals ( $188,992,000 3(17,377,237) $7,354,639 Notes *Public Utilities (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 79.4137% of the actual assessed value. This taxable value is then multiplied by the applicable local mill rates. The balance of the assessed value is multiplied by the Metro Mill Rate of 103.003. This money then goes into the Metro Pool. The City of Fridley 120 TABLE 5 Assessed Valuation Allocated to Adjusted Percent Dollars Tax Increment Assessed of Total of City Financing Value City Tax Tax $ (254,029) $ 21,879,623 12.427 $ 343,991 38,181,961 21 .686 600,297 3,435,857 1.951 54,019 1,024,231 .582 16,103 1,936,424 1.100 30,444 322,192 .183 5,066 (20,362) 1,217,558 .692 19,142 (2,383,690) 19,308,192 10.966 303,563 (50,630) 81,600,014 46.346 1,282,916 4.067 112,570 $(2,708,711 ) $176,260,691 100.00 $2,768,111 received $112,570.10 from this pool. 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 $650 per homestead in credit to the County, and the County in turn distributes this to various local governments as part of the levy request. 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. 121 CITY OF FRIDLEY, MINNESOTA SIGNIFICANT MINNESOTA TAX POLICIES DECEMBER 31 , 1980 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 assessed valuation (taxable value) . Properties are valued by assessors at least once every four years. The Minnesota Department of Revenue appraises representative properties ., annually, comparing sales or market values with the Local Assessors Value. This establishes a sales ratio. The sales ratio is also used in determining municipal and school district state aids. The Assesssors Market Value is multiplied by the appropriate percentage to arrive at assessed value. This percentage varies by class of property. Residential homestead property. Part 16 of the MV said to be "homestead" ($25,000 for taxes due in 1981 ) is assessed at 16%, the next 25,000 assessed at 20%, and the balance at 28%. The assessed value of a homestead residence with a MV of $50,000 would be $9,500 for taxes collectible in 1981 (see "Homestead Credit" note below) . Residential non-homestead property of 1-2-or-3 units is assessed at 28% of its MV. 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 38% ( $50,000 value x 38% = $19,000) . Industrial/commercial/utility property is assessed at 43% of MV. (MV of utilities is computed by the Minnesota Department of Revenue. ) HOMESTEAD CREDIT Homestead taxes are reduced by a 58% credit (maximum $650) . 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 gross property tax to household income: To the extent a homeowner's tax or a renter's imputed tax exceeds certain percentages of household income (1% for lower income groups, up to 4% for incomes of $100,000 or more) , homeowners or renters may receive State credits up to $1,000 (combined homestead and income-adjusted credits) . 122 .. CITY OF FRIDLEY, MINNESOTA PROPERTY TAX RATES PER $1,000 OF ASSESSED VALUE AND TAX LEVIES ALL OVERLAPPING GOVERNMENTS "` LAST TEN FISCAL YEARS Tax Rates School School School School District District District District Year City No. 11 No. 13 No. 14 No. 16 County `. 1972 39.58 Mills 173.68 Mills 162.66 Mills 160.27 Mills 172.87 Mills 73.59 Mills 1973 12.71 54.92 49.88 52.54 56.01 21.77 " 1974 12.94 54.85 53.49 55.04 54.44 " 29.49 " 1975 14.88 60.19 54.12 60.33 66.05* " 22.22 " 1976 14.76 55.27 49.16 H 55.18 61 .60* " 22.16 " 1977 14.78 " 58.40 " 47.26 " 54.65 " 63.62* " 22.21 " "'1 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 37.99 " 41.48 " 41 .12 51.08 27.91 " *Vocational/Technical District No. 916 included in District No. 16. **No Water Shed District in School District No. 11 . This table reflects the new method of determining assessed valuations as required by 1971 ., legislation. This change results in an assessed valuation of approximately 29% of market value instead of approximately 11% under the previous formula. Year Tax Levies 1972 1,139,978 171,539 1,087,369 2,292,156 1,195,816 2,119,529 1973 1 ,214,927 183,201 1,108,087 2,570,517 1 ,182,508 2,080,956 1974 1,390,598 211,658 1,332,878 3,001,552 1,314,940 2,201,959 1975 1,662,685 268,717 1,414,161 3,417,636 1,617,961* 2,482,854 1976 1,855,229 300,800 1,403,823 3,537,777 1,698,993* 2,785,357 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 1,759,295 3,493,129 2,144,854* 4,904,234 *Includes Vocational/Technical District No. 916. " WM .r 124 TABLE 6 Totals Special School School School School __ Districts Districts Districts Districts District Total No. 11 No. 13 No. 14 No. 16 5.60 Mills 292.45 Mills 281.43 Mills 279.04 Mills 291 .64 Mills - 2.38** " 91.78 86.74 89.40 92.87 " 2.89** " 100.17 98.81 100.36 99.76 in 4.77** " 102.06 " 95.99 102.20 107.92 " 3.23** " 95.42 89.31 " 95.33 101 .75 " 3.43** " 98.82 " 87.68 H 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 99.08 " .- Yearly Net Tax Total Total Local Percentage Contribution Increment Tax Tax Levies Increase To Metro Pool District Levies $161,290 $ 8,167,677 -21% 204,380 8,544,576 5% 297,343 9,750,928 14% ._ 520,369 11,384,383 17% 380,806 11,962,785 5% 454,078 13,275,511 11% 426,450 14,123,848 6% 470,367 14,445,244 2% $ 922,702 $15,367,946 542,080 15,397,663 7% 1,083,986 $ 85,221 16,566,870 718,810 16,084,826 4% 1, 113,321 240,295 17,438,442 125 TABLE 7 CITY OF FRIDLEY, MINNESOTA -� SPECIAL ASSESSMENT LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Ratio Total Ratio of Outstand- of Total ing ., Current Collec- Current Collec- Delin- tions and Current Current tions to quent to Delin- Assess- Assess- Amount Assess- Current quent •-■ Fiscal ments ments Due ments Total Levy Assess- Year Due Collected (Percent) Collected Collected (Percent) ments 1971 $688,887 $606,297 88.01 $133,150 $739,447 104.34 $751,726 1972 746,971 634,697 84.97 119,204 753,901 100.93 727,909 1973 697,797 619,236 88.74 87,793 707,029 101.32 724,891 1974 913,497 742,105 81 .24 81 ,990 824,095 90.21 782,751 1975 953,453 696,193 73.02 273,771 969,964 101.73 736,530 1976 942,965 767,498 81 .39 223,843 991 ,341 105.13 706,413 1977 918,918 801,584 87.23 168,821 970,405 105.60 655,073 1978 777,007 699,145 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 • 1980 699,330 628,753 89.91 95,451 724,203 103.56 404,012 0 126 CITY OF FRIDLEY, MINNESOTA HISTORY OF TAX LEVIES AND MILL RATES LAST TEN FISCAL YEARS 1972 1973 1974 1975 Tax levies General Fund $ 923,625 $1,075,464 $1,178,854 $1,624,144 P.E.R .A. Fund 59,566 53,954 95,895 Fire Relief Association Fund 17,602 13,776 ., Police Pension Association Fund 57,547 49,992 75,723 General Debt Service Funds 81,531 67,200 39,200 38,400 Capital Improvement Fund Total $1, 139,871 $1,260,386 $1,389,672 $1,662,544 Mill rate General Fund 32.07 10.84 10.97 14.53 P.E.R .A. Fund 2.07 .54 .89 Fire Relief Association Fund .61 .14 Police Pension Association Fund 2.00 .51 .71 General Debt Service Funds 2.83 .68 .37 .35 Capital Improvement Fund Total 39.58 12.71 12.94 14.88 Notes (1) Beginning in 1972, the value of inventories and fixtures was dropped. Cities were reimbursed by the State via other State Aids. (2) 1972 and subsequent valuations reflect changes as provided for in Laws of 1971 , Extra Session, Chapter 31, amended. .� Beginning with taxes levied in 1972, collectible in 1973, Minnesota assessed values tripled through elimination of the 33 1/3 ratio previously used to arrive at "adjusted" market values. Tax rates are one-third of past rates. 128 TABLE 8 1976 1976 1978 1979 1980 1981 $1,769,965 $1,974,563 $2,114,917 $2,264,856 $2,428,376 $2,684,615 37,500 36,600 41,000 39,900 38,800 38,570 46,596 45,920 43,401 43,368 45,000 44,770 $1,854,061 $2,057,083 $2,199,318 $2,348,124 $2,512,176 $2,767,955 — 14.09 14.18 14.47 14.52 14.795 15.248 — .30 .27 .28 .26 .237 .220 .37 .33 .30 .28 .274 .254 — 14.76 14.78 15.05 15.06 15.306 15.722 (3) Property values include net amount allocated pursuant to Laws of 1971, _- Extra Session, Chapter 23, from Area-Wide "Pool." Beginning with taxes levied in 1974, collectible 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 Metro Tax Pool. 129 CITY OF FRIDLEY, MINNESOTA ., RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS Fiscal Assessed Gross ., Year Population Value Bonded Debt 1971 29,636 $ 28,819,013 $9,655,000 1972 30,240 28,801,865 9,756,000 r1 1973 31,143 95,588,238 9,852,000 1974 32,542 107,465,059 8,885,000 1975 32,486 111,739,609 9,385,000 1976 31,570 125,693,024 8,210,000 .., 1977 31,940 139,227,266 6,775,000 1978 33,450 146,282,224 6,385,000 1979 32,664 155,954,819 6,545,000 1980 30,228 176,260,691 6,105,000 Note The assessed valuation figure used in this table is after the ., contribution from the Metro Pool . 130 TABLE 9 Net Ratio of Net Net Bonded Less Debt Bonded Bonded Debt to Debt Per Service Funds Debt Assessed Value Capita $3,655,759 $5,999,241 .2082:1 $202 3,870,814 5,885,186 .2043:1 194 3,801,883 6,050,117 .0633:1 194 3,010,682 5,874,318 .0547:1 181 3,623,017 5,761,983 .0516:1 177 4,300,690 3,909,310 .0311:1 124 4,209,680 2,565,320 .0184:1 80 4,684,489 1,700,511 .0116:1 51 4,829,151 1,715,849 .0110:1 53 5,271,242 833,758 .0047:1 28 131 TABLE 10 CITY OF FRIDLEY, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN ., DECEMBER 31, 1980 Assessed Value $188,992,000 -, (A) Debt Limit 6.667 Percent of Assessed Value $12,600,097 Amount of Debt Applicable to Debt Limit: ^ Total Bonded Debt $6,105,000 (B) Deductions: General Debt Service Fund Assets $ 69,480 Special Assessment Bonds 5,487,500 Water Revenue & Improvement Bonds 417,500 5,974,480 Total Amount of Debt Applicable to Debt Limit 130,520 Legal Debt Margin $11,620,780 Notes (A) M.S.A. Section 475.53 (see following page) ., (B) M.S.A. Section 475.51 (see following page) 132 CITY OF FRIDLEY, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED) YEAR ENDED DECEMBER 31, 1980 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 6.67 percent of the assessed value." Note (B) : M.S.A. Section 475.51 Definitions "Subdivision 4. "Net Debt" means the amount remaining after deducting from its gross debt the amount of current revenues which are applicable within the current fiscal year to the payment of any debt, and the aggregate of the principal of the following: (1) Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially benefited thereby, including those which are general obligations of the municipality issuing them, if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments. (2) Warrants or orders having no definite or fixed maturity. (3) Obligations payable wholly from the income from revenue producing conveniences. (4) Obligations issued to create or maintain a permanent improvement revolving fund. (5) Obligations issued for the acquisition, and betterment of public waterworks systems, and public lighting, heating or power systems, and of any combination thereof or for any other public convenience from which a revenue is or may be derived. _ (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." 133 TABLE 11 CITY OF FRIDLEY COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT AND COMPARATIVE DEBT RATIOS DECEMBER 31, 1980 Debt % of Debt Net Debt Gross Service Net Applicable Applicable Governmental unit Debt Funds Debt to City to City Direct & overlapping debt Direct debt: City of Fridley $ 6,105,000 $ 5,271 ,242 $ 833,758 100.000 $ 833,758 Overlapping debt: School Districts No. 11 $ 27,520,000 $ 4,037,182 $23,482,818 1 .993 $ 468,013 No. 13 3,905,000 1,521 ,189 2,383,811 31.458 759,899 No. 14 3,334,000 802,529 2,531,471 100.000 2,531,471 ., No. 16 13,228,502 2,921,145 10,307,357 42.175 4,347,128 Metro Transit $ 15,600,000 $ 2,923,000 $12,677,000 1 .070 $215,509 Metro Council $ 34,990,000 $22,396,728 $12,593,272 1.573 $198,092 Anoka County $ 585,000 $ 181 ,762 $ 403,238 20.386 $82,204 Vocational/Technical District No. 916 $ 6,230,000 $ 838,558 $ 5,391,442 2.42 $ 120,473 Overlapping debt $105,392,502 $35,622,093 $69,770,409 $8,722,789 Total direct and r` overlapping debt $111,497,502 $40,893,335 $70,604,167 $9,556,547 134 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 — 1971 $90,000 $48,495 $138,495 $1,846,757 .0750:1 1972 60,000 23,520 83,520 1,953,180 .0428:1 1973 65,000 14,620 79,620 2,341,081 .0340:1 1974 25,000 12,685 37,685 2,520,672 .0150:1 1975 25,000 11,885 36,885 2,899,724 .0127:1 _, 1976 25,000 11,073 36,073 3,281,818 .0110:1 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 .0119:1 135 TABLE 13 CITY OF FRIDLEY, MINNESOTA REVENUE BOND COVERAGE WATERWORKS BONDS ^+ LAST TEN FISCAL YEARS Net revenue Direct available Fiscal Gross Operating for debt Debt service requirements year revenue expenses service Principal Interest Total Coverage ^� 1971 $ 778,223 $ 703,090 $ 75,133 $10,000 $13,825 $23,825 3.1 1972 1,006,611 806,221 200,390 15,000 18,375 33,375 6.0 1973 1,024,475 824,166 200,309 15,000 17,700 32,700 6.1 1974 1,145,027 873,040 271,987 15,000 17,025 32,025 8.5 1975 1,169,260 1,000,918 168,342 15,000 16,350 31,350 5.4 1976 1,286,963 1,108,130 178,833 61,607 22,482 84,089 2.1 1977 1,276,196 1,139,152 137,044 46,607 16,625 62,812 4.2 1978 1,404,459 1,299,988 104,471 51,724 13,361 65,085 1.6 1979 1,394,580 1,237,504 157,076 51,724 10,331 62,055 2.5 '~ 1980 1,477,709 1,376,970 100,739 56,964 7,027 64,171 1.6 136 CITY OF FRIDLEY, MINNESOTA INSURANCE COVERAGE DECEMBER 31, 1980 All risk, direct physical loss coverage Building and contents (except liquor stock) - 90% co-insurance $ 6,119,811 Boiler insurance 500,000 Contractor's equipment 300,550 Signs 15,148 All risk, fire and extended coverage-liquor stores and stock 3,367,000 Comprehensive liability Bodily injury Each person 500,000 Each occurrence 500,000 Property damage 100,000 Liquor liability 250,000/500,000 Excess liability 1,500,000 Automobile — Liability 250,000/500,000 Comprehensive and collision Passenger vehicles Actual cash value Other vehicles Stated value Business interruption, liquor stores 141 ,000 '- Money and securities, inside and outside premises, all locations 15,000 Workers' compensation Statutory Errors and ommission insurance 1,000,000 PRINCIPAL OFFICIALS ' ANNUAL SALARIES AND SURETY BONDS DECEMBER 31, 1980 Surety Name Position Salary Bond Nasim M. Qureshi City Manager $42,640 $50,000 Virgil C. Herrick City Attorney 15,600** None* Vacant City Clerk 31,860 1,000 Vacant Treasurer 31,860 50,000 John G. Flora Public Works Director 34,000 None* James P. Hill Public Safety Director 33,900 None* Robert Aldrich Fire Chief 26,784 None* Charles A. Boudreau Parks and Recreation Director 28,890 None* *All employees are covered by a blanket faithful performance bond of $100,000. **Covers first thirty hours per month of basic service, balance billed at $40 per hour. 137 CITY OF FRIDLEY, MINNESOTA CITY CAPITAL IMPROVEMENT FINANCING POLICY DECEMBER 31, 1980 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. AMR 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 currently has one general obligation bond issue outstanding. This is for the Civic Center. The balance outstanding for this issue on December 31 , 1980 was $200,000. 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 Revolving Fund in 1976. The balance in this fund on December 31, 1980 was $875,882. The purpose of the fund is to finance capital outlay items normally financed through the General Fund. No purchases have been made through this fund to date. REVENUE SHARING .... The General Fund is used as the vehicle for budgeting and expenditure of Revenue Sharing monies. In 1980, 25% of Revenue Sharing funds were used for capital outlay items, 35% for other expenses and 40% for personal services. .. 138 CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION DECEMBER 31, 1980 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 Aa Miles of streets and sidewalks (including State and County) City streets 102.84 Trunk highways 10.8 County roads 15.97 Sidewalks 9.5 '— Miles of sewer Storm 37.71 Sanitary 99.25 Miles of water mains 103.52 Fire protection Number of stations 1 Volunteer Firefighters 34 Full-time Firefighters 5 Fire rating Class 5 Police protection Number of stations 1 Number of sworn officers 33 ALL BUILDING PERMITS Residential Multiple Commercial/ Year No. Value Dwellings Industrial All Other Total '- 1970 50 $ 1,28 6,900 $1,330,000 $3,073,600 $6,310,674 $12,001,174 1971 96 2,380,125 5,045,486 764,400 5,824,504 14,014,515 1972 418 11,270,165 9,501,5 31 4,780,947 2,408, 115 27,960,758 1973 99 2,507,865 -0- 4,482,184 630,014 7,620,063 1974 115 3,025,142 -0- 4,354,649 3,810,271 11,190,062 1975 109 3,845,673 175,850 4,683,913 1,337,616 10,043,052 1976 179 6,786,840 -0- 6,303,847 1,164,862 14,255,549 1977 223 8,805,695 5,170,196 5,596,312 3,271,108 22,843,311 1978 92 3,988,131 425,208 5,247,268 1,532,535 11 ,193,142 1979 108 4,250,781 88,600 7,755,397 1,850,709 13,945,487 1980 23 996,460 194,900 23,922,267 2,513,269 27,626,896 139 CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED) DECEMBER 31, 1980 Number of street lights 920 Number of traffic signal installations 29 Number of other special signal installations 1 Number of civil defense warning sirens 9 Permanent Employees--As of December 31 Number 1970 115 1971 105 1972 109 1973 118 1974 123 1975 130* 1976 129* 1977 148* 1978 141* 1979 122 1980 126 Elections Registered voters--last General Election (1980) 17,901 Number of votes cast last General Election (1980) 14,980 Percent (%) voting 83.6% Population 1950 Federal Census 3,796 1960 Federal Census 15,182 1965 Special 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 32,664 1980 Federal Census 30,228 *Includes CETA 140 CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED) DECEMBER 31, 1980 — Parks and Recreation Areas Developed 425 Acres Undeveloped 125 Acres — Total 550 Acres City Parks Schools Total — Number of: Hockey rinks 10 0 10 — General skating rinks 22 0 22 Playgrounds 10 9 19 Swimming beaches 1 0 1 Swimming pools 0 1 1 — Wading pools 0 0 0 Picnic grounds 1 0 1 Day camp sites 1 0 1 — Baseball diamonds 1 4 5 Softball diamonds 16 16 32 Outdoor basketball courts 19 13 32 Tennis courts 22 17 39 — Horseshoe courts 16 0 16 Archery ranges 1 0 1 Permanent playground buildings 0 0 0 — Permanent picnic shelters 8 0 8 Soccer fields 1 0 1 Football fields 1 9 10 -- Municipal water system source Primary source City of Fridley Water Plant (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, 1980 7,719 Connections — Daily average consumption (gallons) 3.7 million gallons Elevated storage capacity 4.4 million gallons Number of fire hydrants 1,009 — Municipal Sewer System Disposal--through Metropolitan Waste Control Commission — Number of connections December 31, 1980 7,448 Average daily flow (includes infiltration/inflow) 3.13 million gallons 141 CITY OF FRIDLEY, MINNESOTA GENERAL INFORMATION DECEMBER 31, 1980 ., LOCATION - TRANSPORTATION The City of Fridley, with a total land area of eleven square miles and an estimated population of 30,228, is located at the north boundary of Minneapolis and Columbia Heights, about eight miles from the Minneapolis central business district. Freight ., service is provided the area by local and interstate truck lines and the Burlington Northern Railroad and Minnesota Transfer Railway; transportation is available through Metropolitan Transit Commission facilities. Highways serving Fridley include Interstate #694 (beltline around the metropolitan area) and State Highways #65 and #47. Commercial airline service is available at Minneapolis-St. Paul International Airport, approximately twenty-five miles south, and private business aviation facilities are available at the Anoka County and Crystal Airports, both ., operated by the Metropolitan Airport Commission. LARGER EMPLOYERS Larger employers in the City include: ... No. of Employer Product or Service Employees FMC Corporation Pumps and naval ordinance 3,640 .. Burlington Northern Railroad Northtown Yard 2,100 Onan Corporation Portable generators, electronic 1,900 equipment Medtronics, Inc . Electro-medical devices 1,400 Unity Hospital Medical services 1,200 Target Stores & Warehouse Discount store & warehouse 750 Totino's Finer Foods Frozen foods 460 • Carter-Day Company Air control equipment 400 Kurt Manufacturing Machine parts 400 LaMaur, Inc. Cosmetics 398 Safetran Systems Corporation Railroad accessories 325 Holiday Village North Discount department store 320 Independent School District #14 Fridley School District 315 Minco Products, Inc. Electronic devices 280 Barry Blower Company Air moving devices 250 Holly Shopping Center Retail and service establishments 200 Midland Cooperatives Warehousing and oil blending 150 plant �" Strite-Anderson Manufacturing Aluminum die castings 130 ., ., 142 CITY OF FRIDLEY, MINNESOTA GENERAL INFORMATION (CONTINUED) DECEMBER 31, 1980 LIMITED MARKET VALUE Fifteen of the largest taxpayers include: 1980 Payable 1981 Value Market Rank Taxpayer Business Value 1. Onan Corporation Portable electric generators $16,341,300 2. FMC Corporation Naval ordinance 15,502,000 3. Medtronics, Inc. Electro-medical devices 15,369,000 4. Target Stores Discount store & warehouse 9,993,000 5. Maurice Fillister Georgetown apartments 7,597,600 6. LaMaur, Inc. Cosmetics 6,011,100 7. Midland Cooperatives Warehousing & oil & grain products 4,790,800 8. Five Sands Development Meadowrun Apartments 4,543,900 9. Carter-Day Air control equipment 4,297,100 10. Holiday Village Discount department store 4,273,600 11. Pillsbury Totino's Frozen foods 3,783,500 12. Rice Creek Townhouses Townhouses 3,715,600 13. Black Forest Apartments Apartments 3,683,700 14. Honeymead Products Lindseed oil & grain products 3,489,100 15. Wickes (Twin Stores) Discount furniture show/warehouse 2,393,300 Of the City's total assessed value, approximately 54.7% is residential (including apartments, mobile home parks and nursing homes) and 45.3% commercial, industrial and .- utility property. '- FINANCIAL SERVICES The Fridley State Bank has had deposits as follows as of December 31 each year: 1974 $11,002,894 1977 16,585,000 1975 12,759,779 1978 18,032,565 1976 13,898,431 1979 17,884,000 '- 1980 18,763,000 Twin City Federal Savings and Loan Association, Minneapolis, has one of its branch offices in Fridley. 143 CITY OF FRIDLEY, MINNESOTA GENERAL INFORMATION (CONTINUED) DECEMBER 31, 1980 wR MEDICAL FACILITIES Medical facilities in Fridley include Unity Hospital, a 275-bed hospital with an adjacent clinic (Unity Professional Building) , Fridley Convalescent Home, the Fridley Medical Center; and another nursing home, Lynwood Manor. EDUCATION Fridley is served by four school districts, the major portion located within Fridley Independent School District No. 14. The Fridley School District operates three elementary schools, a junior high and a senior high school, employing 220 certified personnel in the education of about 3,618 students. Grace Parochial High School has an enrollment of 996. 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 2,501 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. 144 -�