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1976 Annual Financial Report fl n r ANNUAL FINANCIAL REPORT of the CITY OF FRIDLEY , MINNESOTA 7 for the year ended DECEMBER 91 , 1816 � DEPARTMENT OF FINANCE MARVIN C. BRUNSELL, DIRECTOR OF FINANCE r-)1 MEMBER OF MUNICIPAL FINANCE OFFICERS' ASSOCIATION OF THE UNITED STATES AND CANADA CITY OF FRIDLEY, MINNESOTA ELECTED AND APPOINTED OFFICIALS DECEMBER 31 , 1976 � { ELECTED OFFICIALS i Term of office expires January Elected Mayor - Wi 11 i am J. Nee 1978 Council Wallace R. Starwalt 1977 Carroll A. Kukowski 1978 Edward J. Fitzpatrick 1979 Edward L. Hamerni k 1979 r1 ! Effective January 1977 Mayor - William J. Nee 1978 I I Counci 1 II Carrol A. Kukowski 1978 Edward J. Fitzpatrick 1979 Edward L. Hamernik 1979 Dennis L. Schneider 1980 APPOINTED OFFICIALS Appointed City Manager - Nasim M. Qureshi Clerk-Treasurer - Marvin C. Brunsell Attorney - Vi rgi 1 C. Herri ck Department Heads Finance Director - Marvin C. Brunsell Public Safety Director - James P. Hill Parks and Recreation Director - Charles A. Boudreau Fire Chief - Robert S. Hughes Public Works Director - Richard N. Sobiech Division Heads I I City Assessor - Mervin Herrmann Accounting Officer - Randy C. Fury Liquor Stores Manager - Robert L. McGuire n Assistant City Engineer - Thomas A. Colbert I + Public Works Superintendent - Ralph S. Volkman Cormnuni ty Development Director - Darrel G. Clark Civil Defense Director - Robert D. Aldrich Naturalist - Dan E. Huff El II J J `i] 1 T1A 1 ) - ] I 7 _ 1 -7 ,_.J _I CITY OF FRIDLEY ORGANIZATION CHART I ELECTORATE IMAYOR AND CITY COUNCIL I IPlanning Commission I , I Charter Commission CATV Commission Community Development Commission Human Resources Commission Police Commission Board of Health Parks & Recreation Commission Appeals Commission Housing & Redevelopment Authority Environmental Quality Commission CITY MANAGER I LEGAL I _ I PERSONNEL I iPURCHASINGI 1 NATURE INTERPRETATION PARK & RECREATION PUBLIC WORKS I FINANCE DEPARTMENT I POLICE FIRE Parks Engineering Accounting & Police Protection Fire Protection Data Processing Recreation Utilities ( Animal Control Fire Prevention Assessing & Special Assessments Band Street Maintenance Civil Defense Elections & Planning Registration Building Inspection Liquor Stores CITY OF FRIDLEY, MINNESOTA_ TABLE OF CONTENTS fl Exhibit Number Page Ij City Manager's Letter Finance Director's Letter Accountant's Opinion II SECTION I COMBINED FINANCIAL SECTION Combined Balance Sheet - All Funds Exhibit I 1 Combined Statement of Revenue - General and Special Revenue Funds Exhibit II 3 Statement of Investments Exhibit III 5 II Statement of Cash and Security for Deposits Exhibit IV 7 I Statement of Cash Receipts and I Disbursements - All Funds Exhibit IV 7 Combined Statement of Delinquent rlTaxes - Receivable by Funds Exhibit V 8 Schedule of Bonds Payable - All Funds Exhibit VI 9 SECTION II flFINANCIAL SECTION BY FUNDS General Fund Balance Sheet Exhibit VII 13 rl Analysis of Fund Balance Exhibit VIII 14 II Statement of Revenue - Estimated and Actual Exhibit IX 15 II Statement of Expenditures - rlCompared with Authorizations Exhibit X 16 Special Revenue Funds Combined Balance Sheet Exhibit XI 19 Analysis of Fund Balances Exhibit XII 20 flCombined Statement of Revenue and Expenditures Exhibit XIII 2.1 1 7 r1-1 CITY OF FRIDLEY, PIINNESOTA TABLE OF CONTENTS (CONTINUED) Exhibit r, Number _ Page General Debt Service Fund r F-1 Balance Sheet Exhibit XIV 22 Statement of Revenue and Expenditures Exhibit XV 23 II Capital Project Funds Combined Balance Sheet Exhibit XVI 24 ' Analysis of Fund Balances Exhibit XVII 25 Statement of Revenue and Expenditures Exhibit XVIII 26 Enterprise Funds rl Municipal Liquor Fund Balance Sheet Exhibit XIX 27 Analysis of Changes in Retained Savings Exhibit XX 28 Statement of Income Exhibit XXI 29 Statement of Operating Expenses Exhibit XXII 31 ri Statement of Changes in Financial Position Exhibit XXIII 32 n Water and Sewer Revenue Bond Fund f ! Balance Sheet Exhibit XXIV 33 Statement of Changes in Financial Position Exhibit XXV 34 Statement of Income Exhibit XXVI 35 Analysis of Change in Sinking and Reserve Accounts Exhibit XXVII 37 flSpecial Assessment Funds Combined Balance Sheet Exhibit XXVIII 38 .. Analysis of Fund Balances Exhibit XXIX 39 r•. Statement of Cash Receipts and Disbursements Exhibit XXX 40 n 1 r-, r-, CITY OF FRIDLEY, MINNESOTA ri TABLE OF CONTENTS (CONTINUED) Exhibit Number Page Trust and Agency Funds ^ Industrial Revenue Bond Fund Balance Sheet Exhibit XXXI 41 ( ! Statement of Cash Receipts and Disbursements Exhibit XXXI 41 General Fixed Assets Statement of General Fixed Assets Exhibit XXXII 42 General Long Term Debt Statement of General Long Term Debt Exhibit, XXXIII 43 Notes to Financial Statements Note 1 - Summary of Significant Accounting Policies- 44 All Funds Note 2 - Pending Litigation 44 Note 3 - Deferred Credit - Metropolitan Waste Control Commission - Water and Sewer Revenue Bond Fund 45 Note 4 - Pension Plans 45 Note 5 - Leases 46 Note 6 r Bonded Debt 46 SECTION III STATISTICAL SECTION General Fund Expenditure Analysis by Function Table 1 47 7 General Fund Revenues by Source Table 2 48 Property Tax Levies and Collections Table 3 49 Assessed Value and Estimated Market Value of All Taxable Property Table 4 50 History of Tax Levies and Mill Rates Table 5 52 7.\ .. T, 6 CITY OF FRIDLEY, MINNESOTA 0�/ TABLE OF CONTENTS (CONTINUED) Exhibit Number Page iiStatement of Valuations and Levies by Classes of Property - for Taxes Payable in 1976 Table 6 54 iiStatement of Valuations and Levies by Classes of Property - for Taxes Payable in 1977 Table 7 55 rd Special Assessment Levies and Collections Table 8 56 Debt Service Requirements - All Funds Table 9 57 r, Debt Service Requirements - General Obligation Bonds Table 10 58 rr Debt Service Requirements - Permanent Special Assessment Bonds Table 11 59 Debt Service Requirements - Temporary Special rr Assessment Bonds Table 12 60 Debt Service Requirements - Public Utility Revenue t' and Water Improvement Bonds Table 13 61 Computation of Legal Debt Margin Table 14 62 r Property Tax Rates and Tax Levies - All Overlapping Governmental Units Table 15 64 V Computation of Direct and Overlapping Bonded Debt and Comparative Debt Ratios Table 16 66 r Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Government Expenditures Table 17 67 r Ratio of Net Bonded Debt to Property Values and Net Bonded Debt Per Capita Table 18 68 ✓ Schedule of Insurance in Force Table 19 69 City Capital Improvement Financing Policy Table 20 70 ✓ Miscellaneous Statistical Information Table 21 71 T h r CITY OF FRIDLEY 6431 UNIVERSITY AVENUE N.E., FRIDLEY, MINNESOTA 55432 April 15, 1977 The Honorable Mayor and City Council City of Fridley Fridley, Minnesota 55432 TELEPHONE ( 612)571-3450 Council Members : rThis letter is the preface to the 1976 annual financial report of the City of Fridley. The report has been prepared and submitted in accordance with Section 7.14 of the City Charter. The report has been prepared under the direct supervision of I Marvin C. Brunsell , Director of Finance. The accounts and fiscal affairs have been audited by the George M. Hansen Company an independent firm of Certified Public Accountants. The report is presented in three parts , a letter of transmittal , the financial section, and the statistical section. The financial section shows combined financial information and financial information by fund, summarizes the financial condition II of the City, and is certified by the George M. Hansen Company. The statistical section contains tables and data having reference value for those who invest in the City of Fridley bonds and others interested in financial statistics of municipalities. This fiscal report represents the detailed and comprehensive r financial statement of the City and is designed to show the City's financial condition and operation of city government. A careful analysis of the financial activity will verify sound fiscal management and supports the City's A-1 bond rating. V ry truly yours , Nasim M. Qureshi City Manager rriTh 7 Air CITY OF FRIDLEY 8431 UNIVERSITY AVENUE N.E., FRIDLEY, MINNESOTA 55432 TELEPHONE ( 612)571.3450 April 15, 1977 Mr. Nasim M. Qureshi City Manager City of Fridley Dear Mr. Qureshi : The annual financial report for the City of Fridley for the fiscal year ended December 31 , 1976 is herewith submitted. ACCOUNTING SYSTEM AND REPORTS The organization form and contents of this report were prepared generally 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 State Auditor's Office, State of Minnesota, and the City Charter. The City of Fridley operated on a modified accrual basis of accounting. Major revenues are recorded when earned and expenditures are recorded when incurred. A complete budgetary system of accounts is maintained for those funds where governmental budgetary principles are applicable. ' Budgetary control is maintained in compliance with 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, automatically be spent. The policy provides for flexibility in that where need has been properly demonstrated, and adjustment can be made within the department's budget by the City Manager, or between City departments 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 revenues unless the actual receipts exceed such revenue estimates , and in that event not beyond such actual receipts. 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 has not borrowed funds during the past year either on a short term basis , or a long term basis , to meet current operating expenses. r Th The City of Fridley has computerized substantially all of its financial operations. This has been done through the use of computer facilities and programs available r El 7 Ti through the "LOGIS" organization. The objective of LOGIS is to provide a computer based management information system for use by Minnesota municipalities. The Local Government Information Systems Association, "LOGIS," was formed under the Minnesota Joint Powers Act to provide an organization through which a number of municipalities could jointly and cooperatively provide for the establishing, operation , and maintenance, of data processing facilities and management informa- tion systems for the use and benefit of the members and others. The Articles of Agreement became effective May 25, 1972 and the By-Laws were adopted May 26, 1972. The accounting modules which have been computerized are the payroll module, the utility billing module, the financial control module, the equipment control module, r� the fixed asset module and the liquor inventory module. II, The following is a brief explanation of the purpose of each type of fund used in managing and accounting for City operations. GENERAL FUND Purpose The General Fund was established to account for revenues and expenditures necessary to provide basic governmental services to the City, such as general government, public safety, highway maintenance, park and recreation services. This is one of the three operating funds of the City. The other two operating funds are the Public Utility Fund and the Municipal Liquor Fund. ri Comments On December 31 , 1976, the General Fund showed an unappropriated fund balance of $834,196 and an appropriated fund balance of $356,335. The appropriated fund balance includes the amount necessary to fully reserve the City's accrued liability for vacation benefits for all City employees. It also includes the estimated r., potential liability for sick leave benefits for all City employees. The City's liability for sick leave accrual was based on one-third of the total sick leave accumulations for all City employees. The unappropriated fund balance of $834,196 is available to finance future City budgets. In actual practice, this represents working capital for the General Fund operations. The City receives most of its tax revenues during the months of July and December. This necessitates carrying a relatively high fund balance in order to maintain the City's policy of not 7 funding General Fund operating expenditures by borrowing. The General Fund 1 balance increased by $136,372 in 1976. Of the $136,372, $98,749 was the result of actual expenditures being under budgeted expenditures. fIn the financial statements which follow, revenues are recorded by source while expenditures are recorded by division. Included in general property taxes in 71- 7 , 1 rlthe statement of revenue, are taxes and payments from the State Property Tax Relief Fund for Homestead Credit. 7 A plan of financial operations of the fund is set forth in the annual budget adopted by the City Council . General Fund statements are prepared to show the budget estimate and the actual amount expended. A condensed summary of revenue -. and expenditures is shown below. Revenues received for General Fund operations totaled $3,412,839 in 1976, an increase of $457,989 over the previous year. The following table represents an analysis of the major revenue sources for the General Fund for the years 1974, 1975 and 1976. 1976 1975 1974 Revenue Source Budget Actual Actual Actual r, General property taxes $1 ,734,566 $1 ,762 ,205 $1 ,619,966 $1 ,344,632 Licenses and permits 125,450 144,451 111 ,728 124,456 Intergovernmental revenue 795,654 811 ,406 648,872 601 ,266 Charges for current services 57,878 63,200 59,936 58,243 i Fines and forfeitures 55 ,000 66,453 62,902 54,686 From use of money and property 63,884 83,939 68,126 66 ,417 Other revenue 75,003 95,797 47,627 46,151 Interfund transfers 380,043 385,388 335,693 323,690 Prior year's fund balance 92 ,735 Total $3,380,213 $3,412,839 $2,954,850 $2,619,541 Expenditures for general governmental operations totaled $3,281 ,464 in 1976, an 7 increase of $412,019 over 1975. Expenditure by Function 7 General government $ 515,865 $ 476,286 $ 436,032 $ 389,955 Public Safety 1 ,163,971 1 ,146,181 1 ,016,774 893,201 � Civic Center 90,990 80,067 77,753 61 ,449 IJ Public Works 902,250 879,626 755,904 642,438 Parks and Recreation 707,137 699 ,304 582,982 493,160 �1 Reserve for contingencies -0- -0- -0- -0- Total $3,380,213 $3 ,281 ,464 $2,869,445 $2,480,203 7 Levy Limitations Minnesota Levy Limitation Law was adopted in 1972, and in general has placed a .. limitation on the amount of increased property tax which a City can levy. The r, n •-, r-, amount of increase is limited to six percent 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 1975 and 1976: 1976 1975 Authorized levy $1 ,704,706 $1 ,432,811 Plus allowable special levies 353,724 396,926 Total allowable levy $2,058,430 $1 ,829,737 Actual levy 1 ,854,061 1 ,662,544 Excess not used $ 204,369 $ 167,193 The City is operating within the authorized levy limitation. In the year 1976, the City was $204,369 under the levy limitation. Fiscal Disparities ^ The State Legislature enacted a "Fiscal Disparity Law" in 1971 which was not implemented until taxes payable in 1975 due to a constitutional challenge. The law provides for the "pooling" of forty percent 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 $4,541 ,034 in 1976. r SPECIAL REVENUE FUNDS Purpose Special revenue funds are used to account for revenue derived from specific taxes or other ear-marked 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 ii 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 construction funds received from the State of Minnesota, plus the special assessments levied, less the cost of the project. ' i J flThis excess is transferred back to the Municipal State-Aid Fund where the funds are ear marked for seal coating projects , or the City's share of sidewalk or �., street improvement projects. ' ' Revenue Sharing Fund 7 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 r, accordance with the provision of this act. The City's share of these Revenue Sharing Funds for the year 1976 was $198,863. Revenue Sharing Funds are transferred from the Revenue Sharing Fund to the General Fund where the Revenue Sharing amounts are budgeted. The City maintains a separate Revenue Sharing Budget on a memo basis. The past policy of the City Council has been to use Revenue Sharing Funds primarily for capital outlay items. Anti-Recession Revenue Sharing Fund Anti-Recession Funds were received by the City in November of 1976, and have been deposited in a fund created for this purpose. As of December 31 , 1976, the ^'Th City Council had not appropriated these funds. GENERAL DEBT SERVICE FUNDS Purpose ii Debt Service Funds account 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 moneys for payment of general obligation bonds and interest therein. Property taxes provide the necessary revenue. CAPITAL PROJECT FUNDS Purpose r-, Capital Project Funds receive and disburse moneys used for acquisition of capital facilities other than those financed by Special Assessments and Enterprise Funds. Capital Project Fund This fund was established to account for the receipts and disbursements of a i 71 revolving type capital improvement fund. No expenditures have been made from this fund to date. Islands of Peace This fund was established to account for the Islands of Peace Project. A $7,000 grant has been authorized by the State of Minnesota for use in conjunction with the Islands of Peace Project. The City has not yet received the funds from the grant, but the City has been notified by the State that the grant has r been approved. 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 has been received from the State of Minnesota for use on this project. n ENTERPRISE FUNDS ! 1 Purpose 7'") Enterprise funds account for the financing of services to the general public in which all or most of the cost involved are paid in the form of charges by the users of such service. In the City of Fridley, Enterprise Funds are used to account for the operation of the Public Utility System and the Municipal Liquor Stores. Except for ownership, Enterprise Funds bear a close resemblance to privately owned utility or service enterprises. Municipal Liquor Fund The Municipal Liquor Fund was established to account for the operation and 7 financing of the City owned Municipal Liquor Stores. This is an Operating Fund. The City presently operates two off-sale liquor stores. One is located at ., 6289 Highway 65 and 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 City is operating under a five year lease at the University Avenue location. The lease term began on August 1 , 1974 and will run to July 31 , 1979. The lease provides for annual rentals of $8,232 for the two year period ending July 31 , 1978, and $8,532 per year for the twelve months ending July 31 , 1979. Shown below is a condensed summary of liquor store operations for the years nI n 1:1", f1976, 1975, 1974 and 1973. n 1976 1975 1974 1973 Sales $1 ,061 ,562 $1 ,100,224 $1 ,074,169 $1 ,067,330 Gross profit 214,480 231 ,768 245,843 235,182 pNet profit 98,963 90,939 107,339 52,109 Transfers to the General Fund $ 85,000 $ 75,000 $ 75,000 $ -0- nRetained earnings of the Municipal Liquor Fund were $693,625 on December 31 , 1976, compared to $679,662 on December 31 , 1975. i n Water and Sewer Revenue Bond Fund ' This fund accounts for the operation and financing of City owned sewer and n water systems. In 1956 and in 1970, revenue bonds in the amount of $170,000 1 and $460,000, respectively, were issued. In 1975, the bonds issued in 1970 were refunded bond substituted. On December 31 , 1976, n ,663 of these and bonds a new were outstanding issue and payable in future years. Debt Service Accounts for these bond issues are being maintained in accordance with the provisions of the bond sale agreements. The agreements provide that net revenues of the water and sewer operation, equal to the principal and interest maturities of the revenue bonds due in the following year be n pledged as collateral . n In 1969, the fund assumed a $770,000 liability for bonds payable along with f ) future interest obligations of the Water No. 75 Improvement Bonds. A total principal amount of $570,000 for this bond issue was outstanding on n December 31 , 1976. 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 on this bond issue, and to provide the necessary revenue from the Water and Sewer Revenue Bond Fund. I I The receivable from the Metropolitan Waste Control Commission of $428,401 represents the City's share of the equity in the Minneapolis Sewer System n which was acquired by the Board on January 1 , 1971 , and the balance of the I ' reserve capacity charges which were advanced to the Commission during 1971 and 1972. The reserve capacity charges of $51 ,260 at December 31 , 1976 will be n repaid with interest directly to the City over the next twelve 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 flinstallments with interest through 1999. The City follows the practice of carrying the cost of the distribution system, financed by special assessments , in the general fixed asset fund. Those n r n n A,R-6,2,„ 6(5,46 _...--- -----'-- . improvements to the utility system, paid for or financed by the Water and Sewer Revenue Bond Fund, are carried in this fund. The Water and Sewer Revenue Bond Fund has transferred moneys to the Special Assessment Debt Service Funds to pay principal and interest on some bond �. issues , although , it is not required 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 , 1976 were $2,775,607, compared to $2,460,780 on December 31 , 1975. Shown below is a condensed summary of operations of the Water and Sewer Revenue Bond Fund for the years 1976, 1975, 1974 and 1973. 1976 1975 1974 1973 Water account Operating revenue $707,872 $554,174 $548,467 $413,027 Operating expenses 460,948 419 ,532 458,314 416,621 Operating income (loss) $246,924 $134,642 $ 90,153 $ (3,594) Sewer account Operating revenue $579 ,091 $615,086 $596,560 $611 ,448 Operating expenses 647,182 581 ,386 414,726 407,545 Operating income (loss) $(68,091 ) $ 33,700 $181 ,834 $203,903 SPECIAL ASSESSMENT FUNDS Purpose Special Assessment Funds are employed 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 specially benefit, distinguish them from improvements which benefit the entire community and which are paid for out of general revenues or through the issuance of general obligation bonds. Comments The City employs the practice of issuing temporary three year bonds to finance the improvements during the construction stage of projects. The temporary bonds usually are in force past the time the special assessment rolls are adopted by r.. 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 amount of permanent bonds issued by the City to a minimum. Special Improvements Revolving Fund The purpose of this fund is to provide temporary financing for small improvement projects. TRUST AND AGENCY FUND Purpose Trust and Agency Funds account for assets held by the City as a trustee or agent for individuals, private organizations , and other governmental units. Comments In the past, the City has maintained Trust and Agency Funds for Police Pensions , Fire Pensions and other City employee pension costs. These pension costs are now accounted for in other City funds. The General Fund makes remittances to r1 the State of Minnesota for Social Security, the Public Employees Retirement Association , the Fridley Fire Relief Association , and the Fridley Police Relief Association. ^" The cost of pensions is shown as part of the operating costs of the General Fund for all regular governmental operations. Exceptions are those pension costs associated with the Liquor Operation , the Public Utility Operation, or pension costs associated with special assessement improvement projects. These costs are now shown in their respective funds. — Industrial Revenue Bond Fund The only remaining Trust Fund of the City is the Industrial Revenue Bond Fund which was set up to account for the deposit by a private corporation in connection with an industrial revenue bond issue. 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 , Working Capital , or Trust 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 ,k 7 H a life longer than the fiscal year, and (3) it must be of significant value. GENERAL LONG-TERM DEBT FUND Purpose General Obligation Bonds and other forms of Long-Term Debt supported by general revenues , are obligations of a governmental unit as a whole and not its individual constituent funds. Morever, 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 full faith and credit of the City, are accounted for and reported in a separate self-balancing group of accounts entitled General Long-Debt Group of Accounts. The group includes , in addition to, conventional General Obligation Bonds , Time Warrants , and Notes which have a maturity of more than one year from date of issuance. Comments As of December 31 , 1976, the Long-Term Debt of the City consisted of $310,000 in Definitive Bonds issued for the purpose of financing the Civic Center, and $171 ,851 in Long-Term Contracts payable , issued for the purpose of financing the addition to the City's Municipal Garage. CITY INVESTMENT POLICY r. The City follows a policy of pooling the investments for all City funds and prorating the interest earned back to each fund on the basis of each funds average cash balance. During the year 1976, interest earnings totaled $532,220. This is an increase of $39,723 over the $492 ,497 earned in the year 1975. BOND RATING The City's current bond rating is A-1 . This rating was awarded for the Improvement Bond Sale held on February 9, 1976. The amount of the bond issue was $1 ,550 ,000. The purpose of the bond issue was to refund temporary three- year improvement bonds. The 1976 issue is payable 100% from special assessments which were levied in 1975 or prior years. The City was awarded the A-1 bond rating for the first time on March 1 , 1975. PENSIONS -, Comments Employees in the City of Fridley are covered by five pension plans. They are ; •, (1 ) the Fridley Fire Relief Association for Volunteer Firemen , (2) the Fridley Police Pension Association for Police Officers hired prior to December 15, 1975, n OMR (3) the 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 covering certain other City civilian employees , and (5) the 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. A brief explanation of each of the pension plans follows : Fridley Firemen's Relief Association As of December 31 , 1976, there were thirty-six active Volunteer Firemen covered by this pension system. The pension plan provides benefits for Volunteer Firemen only, and provides no benefits for full-time Firemen. The City's full-time Firemen are covered by the P.E.R.A. Police and Fire Plan. The Fridley Fire Plan is actuarially sound. An audit report performed for the Fridley Volunteer Firemen's Relief Association by the State Auditor's Office as of December 31 , 1975, shows an actuarial surplus in the fund of $95,401 . Based on a letter from Stennes & Associates , dated August 4, 1975, the cost of the plan is $22,090 per year. Funding for the pension plan is provided entirely from the 2% rebate received from the State of Minnesota. This rebate is in the form of a 2% levy on all fire insurance premiums written in the City of Fridley. In 1976, this source of revenue provided $33,773 to the fund, which was in excess of the amount needed to meet the normal pension costs. Fridley Police Pension Association The Fridley Police Pension Association was incorporated on December 26, 1966 to be effective January 1 , 1967. On December 31 , 1976, the plan covered twenty-seven sworn Police Officers on the City of Fridley Police Force. On December 15, 1975, the City Council adopted an ordinance which has the effect of placing all newly hired Police Officers in the State-Wide P.E.R.A. Police and Fire Plan. This action of the City Council has the affect of substantially r, reducing the City's liability for newly hired Police Officers , as the State- Wide Police and Fire Plan has less liberal retirement benefits in comparison to the Fridley Police Pension Association. This action of the City Council has been upheld by the Minnesota District Court. An Audit Report prepared for the Fridley Police Pension Association by the State Auditor's Office shows an unfunded actuarial deficit of $571 ,950 as of December 31 , 1975. Assets of the association were shown as $695,277 and total liabilities of $1 ,267,227. In 1969 , the State Legislature adopted legislation requiring all municipalities in the State to gradually increase their contributions to local pension plans such as the Fridley Police Pension Association , so that by the year 1980 the level of funding would be such that the actuarial deficit in the plan would be frozen. The purpose of the legislation was to prevent an increase in unfunded pension liabilities , and to cause the employee and employers to contribute sufficient funds to the plan to fund the normal cost of the plan. The City has proceeded ahead of schedule in increasing its contributions to the plan. The normal cost of the pension plan is 25.85% of payroll according to Hewitt Associates 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 5% of payroll . The total funding requirements of the plan, therefore , are approximately 31% of covered payroll , with the employees contributing 6%. The City receives a 2% rebate on automobile insurance policies written in the City. This is for the purpose of helping pay the employers share of pension costs. In 1976 , this amounted to $23 ,028. The City contributed $87,148 in taxes during the year 1976. The total contributions to the fund, by the City, were $110,176. This compares with a normal cost of the plan, assuming there was no deficit, of $119 ,450. The amount the City and the employees contributed is $5, 287 short of the level of funding that must be reached by 1980. Because of the Council 's action in placing newly hired Police Officers in the State- Wide 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 State law for this pension plan. Public Employees. Retirement Association - Police and Fire Plan As of December 31 , 1976, there were five full-time Firemen and the Public Safety Director in the State-Wide Police and Fire Plan. The normal cost of this plan is 20% of payroll . The employee contributes 8% of payroll and the employer 12%. According the Executive Secretary of the Public Employees Retirement Association , their actuarial survey shows this plan was 77% funded as of December 30, 1976. Basi c Public Employees Retirement Association P1 an As of December 31 , 1976, there were thirty-two permanent employees and two temporary employees covered by the State-Wide Basic Public Employees Retirement Plan. Employees under this plan are not covered by Social Security. This is a State-Wide 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 22% to make up the actuarial deficit. Employees contribute 8% of payroll and employers contribute 8%, plus an additional 22% which is applied towards the actuarial deficit. State law •- provides that the actuarial deficit is to be retired by 1997. According to the Executive Secretary of P.E.R.A. , their actuarial survey shows the plan was r. 63% funded as of June 30, 1976. Coordinated Public Employees Retirement Association Plan As of December 31 , 1976, there were seventy permanent employees and eight temporary employees covered by this plan. 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 12% to make up the actuarial deficit of the fund. The employee contributes 4% of payroll and the employer 4% of payroll , plus an additional 11/2% to retire the actuarial deficit. Under State law, the actuarial deficit is scheduled to be retired by 1997. The Executive Secretary of P.E.R.A. states that their actuarial survey shows the plan was 87% funded as of June 30, 1976. 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, Certified Public Accountants , is included with this report. r1 Acknowledgement The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated services of the entire staff of the Finance Department. I want to express my special appreciation to Randy Fury and Shirley Haapala for their assistance. I wish to also thank the office of the City Manager 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. P'4 Very truly yours , ar n C. runse Assistant City Manager/Finance Director r. LTh GEORGE M. HANSEN COMPANY r' Certified Public Accountants SOUTH PLAZA BUILDING MINNEAPOLIS, MINNESOTA 55416 ACCOUNTANTS ' OPINION PR Honorable City Council City of Fridley, Minnesota We have examined the financial statements of the various funds and account groups of the City of Fridley for the year ended December 31, 1976, listed r., in Sections I and II of the foregoing table of contents. Our examination was made in accordance with generally accepted auditing standards and included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the aforementioned financial statements present fairly the financial position of the various funds and account groups of the /Th City of Fridley at December 31, 1976, and the results of operations of such funds and the changes in financial position of the Enterprise and Intragovernmental Service funds for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent r-• with that of the preceding year. ...9gzeer 777 7:142"17-42e-71- 67zar F"' March 22, 1977 #may �sn x}] .:Y 4 . i t~n ' „ .„_,,,;.,.,,,,, . ,:::,..__....4.: . . , ., .. , „_.... , , ., ::„:"...7,-"•-• -.'* . - ' ' ' '1 '. ' '-- '' ' • ■ j 'k } € ' w ` ,.Z k 5* ,.A r T f+?<” b'Y ` fi ' "y€ -, ?';: t i it 4 m a °rtet r „ .re:EE ,4-3U W a'x * s ''a * �w 4 re a a CITY OF FRIDLEY, MINNESOTA El BALANCE SHEETS - ALL FUNDS DECEMBER 31 , 1976 pi Combined ri (Memorandum Special Only) General Revenue ASSETS fl Cash (deficit) $ (262,290) $ (200,033) $ 30,931 Investments, at cost U. S. Government obligation 7,368,091 1 ,391 ,700 1 ,050,980 City of Fridley temporary bonds 1 ,650,000 Accounts receivable 1 ,234,587 254,469 112,536 Taxes receivable 94,628 90,993 ri Special assessments receivable 5,468,411 17,376 Due from other funds 7,389 Inventories , at cost 147,434 11 ,705 ' I Prepaid expenses 52,127 52,127 Fixed assets , at cost less accumulated depreciation 27,521 ,423 Amount available in General Debt Service ri Fund 49,081 Amount to be provided by future taxes 526,151 Total assets $43,857,032 $1 ,618,337 $1 ,194,447 (7 LIABILITIES, RESERVES AND FUND BALANCE pi Accounts and contracts payable $ 741 ,853 $ 297,001 n Deposits payable 191 ,947 15,047 II Due to other funds 7,389 7,389 Bonded indebtedness - Future maturities Definitive bonds fI Principal 6,560,000 Temporary bonds (held by City of Fridley) Principal 1 ,650,000 ri Reserves 768,880 108,369 $ 66,668 Investment in general fixed assets 25,432,158 Retained earnings 3,469,232 n Fund balance Appropriated 3,956,194 356,335 1 ,021 ,880 Unappropriated 1 ,079,379 834,196 105,899 Total liabilities, reserves and rl fund balance $43,857,032 $1 ,618,337 $1 ,194,447 r-1 7i -1- . n II Exhibit I General Water and Trust General Debt Capital Municipal Sewer Special and Long Term Service Project Liquor Utilities Assessment Agency Fixed Assets Debt $ 779 $ 630 $ (1 ,541 ) $ 51 ,242 $ (144,210) $ (88) 45,930 61 ,032 215,191 1 ,564,919 3,033,605 4,734 1 ,650,000 7,000 139,974 720,608 2,372 1 ,263 5,451 ,035 7,389 130,494 5,235 221 ,253 1 ,868,012 $25,432,158 $ 49,081 526,151 $49,081 $77,314 $705,371 $4,210,016 $9,990,430 $4,646 $25,432,158 $575,232 $48,000 $ 6,714 $ 12,862 $ 205,425 $171 ,851 708 171 ,546 $4,646 835,663 5,414,337 310,000 1 ,650,000 2,372 1 ,263 5,032 585,176 $25,432,158 .. 693,625 2,775,607 46,709 (17,852) 2,549,122 45,903 93,381 $49,081 $77,314 $705,371 $4,210,016 $9,990,430 $4,646 $25,432,158 $575,232 .. -2- II CITY OF FRIDLEY, MINNESOTA COMBINED STATEMENT OF REVENUE - EXPENDITURES AND ENCUMBRANCES GENERAL AND SPECIAL REVENUE FUNDS FOR THE YEAR ENDED DECEMBER 31 , 1976 Special Revenue Funds n I1 General Municipal Revenue Anti Fund State Aid Sharing Recession Revenues General property taxes $1 ,762,205 f Licenses and permits 144,451 Intergovernmental revenue 811 ,406 $110,826 $198,863 $23,063 Charges for current services 63,200 fl Fines and forfeitures 66,453 Use of money and property 83,939 55,092 5,237 Transfers from other funds 385,388 167,781 Other revenue 95,797 Total $3,412,839 $333,699 $204,100 $23,063 i Expenditures General government $ 476,286 $ 66,000 $229,043 fl Public safety 1 ,146,181 Civic Center 80,067 Engineering & inspection 267,501 Highways 612,125 136,575 Naturalist 103,685 Parks 363,460 1.1 Recreation 232,159 - - Total $3,281 ,464 $202,575 $229,043 $ -0- i El rl ' 1 n -3- El Exhibit II Eliminations Combined Statement Combined and 1976 1975 Total Adjustments Total Total $1 ,762,205 $1 ,762,205 $1 ,619,966 144,451 144,451 111 ,728 1 ,144,158 $295,043 849,115 901 ,667 63,200 63,200 59,936 66,453 66,453 62,902 144,268 144,268 133,050 553,169 553,169 371 ,152 95,797 95,797 47,627 $3,973,701 $295,043 $3,678,658 $3,308,028 ■ 1 $ 771 ,329 $295,043 $ 476,286 $ 436,032 1 ,146,181 1 ,146,181 1 ,016,774 80,067 80,067 77,753 267,501 267,501 230,742 748,700 748,700 672,574 103,685 103,685 77,248 363,460 363,460 210,809 232,159 232,159 294,925 $3,713,082 $295,043 $3,418,039 $3,016,857 -4- CITY OF FRIDLEY , MINNESOTA 7 STATEMENT OF INVESTMENTS DECEMBER 31 , 1976 Interest Rate Maturity Cost i Federal National Mortgage Association 7.05% 3/10/77 $ 200,000 Federal National Mortgage Association 7.45 9/11/78 150,000 � Federal Land Bank Bonds 6.35 10/20/77 50,781 ! I Federal Land Bank Bonds 8.69 1/23/78 200,000 Federal Land Bank Bonds 6.80 10/23/79 204,282 ... Federal Home Loan Bank Bonds 6.75 11/25/77 500,000 Federal Home Loan. Bank Bonds 6.66 2/27/78 100,875 Federal Home Loan Bank Bonds 6.07 5/25/79 191 ,715 Federal Home Loan Bank Bonds 6.70 11/25/80 511 ,154 n Federal Home Loan Bank Bonds 6.70 11/25/80 179,370 II U. S. Treasury Bills 6.00 1/11/77 38,039 U. S. Treasury Bills 5.66 3/8/77 47,241 n U. S. Treasury Bills 5.30 4/5/77 23,682 II U. S. Treasury Bills 6.10 4/5/77 65,952 Certificate of Deposit - Northwestern National , Mpls 6.00 1/17/77 150,000 .- Certificate of Deposit - Northwestern National , Mpls 5.875 1/20/77 100,000 Certificate of Deposit - Northwestern National , Mpls 6.25 2/23/77 250,000 Certificate of Deposit - Northwestern National , Mpls 6.375 4/15/77 100,000 Certificate of Deposit - Northwestern National , Mpls 6.50 6/23/77 500,000 *' Certificate of Deposit - Northwestern National , Mpls 6.25 12/16/31 500,000 Certificate of Deposit - Northwestern Nat' l , St. Paul 6.25 5/16/77 300,000 Certificate of Deposit - Fidelity, Minneapolis 6.625 6/23/77 375,000 ri Certificate of Deposit - Fidelity, Minneapolis 6.50 7/10/77 400,000 Certificate of Deposit - Fidelity , Minneapolis 6.25 7/15/77 300,000 Certificate of Deposit - Fidelity, Minneapolis 6.25 8/16/77 100,000 Certificate of Deposit - Fidelity, Minneapolis 6.25 9/2/77 200,000 Certificate of Deposit - Fi deli ty , Minneapolis 5.80 11/17/77 200,000 Certificate of Deposit - First Northtown , Blaine 6.45 3/9/77 100,000 Certificate of Deposit - Twin City Federal Savings �1 & Loan , Fridley 7.00 3/31/78 100,000 II Certificate of Deposit - Marquette Bank, Columbia Heights 6.60 4/18/77 100,000 Certificate of Deposit - First National , Minneapolis 6.125 5/5/77 100 ,000 7 Certificate of Deposit - First Federal Savings & Loan , Roseville 6.75 5/16/77 100,000 Certificate of Deposit - Hennepin Federal Savings n & Loan , Minneapolis 6.75 7/18/77 100,000 Certificate of Deposit - Northern Federal Savings & Loan, St. Paul 7.25 7/18/77 100,000 n Certificate of Deposit - Midwest Federal Savings & Loan , Minneapolis 7.00 4/11/78 100,000 Certificate of Deposit - Home Federal Savings & Loan, n Columbia Heights 7.00 4/11/78 100,000 II Short Term Government Securities - State Street Bank 5.19 Indefinite 125,000 Short Term Government Securities - State Street Bank 5.19 Indefinite 25,000 Short Term Government Securities - State Street Bank 5.19 Indefinite 30 ,000 n Short Term Government Securities - State Street Bank 5.19 Indefinite 50,000 Short Term Government Securities - State Street Bank 5.02 Indefinite 100 ,000 �1 Short Term Government Securities - State Street Bank 5.01 Indefinite 200,000 n -5- 11 Exhibit III CITY OF FRIDLEY , MINNESOTA STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31 ,1976 Interest Rate Maturity Cost City of Fridley Temporary Bonds 1975 Street 7.00% 3/15/78 $1 ,220,000 Sewer and Water No. 117 7.00 10/15/78 50,000 Sewer, Water and Storm Sewer No. 119 7.00 6/15/79 55,000 1976 Street 7.00 7/15/79 325,000 Total $9,018,091 Allocated by funds General $1 ,391 ,700 r Special Revenue Funds 1 ,050,980 General Debt Service Fund 45,930 Capital Project Fund 61 ,032 Enterprise Funds 1 ,780,110 Trust and Agency Fund 4,734 Special Assessment Funds 4,683,605 Total $9,018,091 lb -6- CITY OF FRIDLEY, MINNESOTA Exhibit IV n STATEMENT OF CASH AND SECURITY FOR DEPOSITS II DECEMBER 31 , 1976 n Face amount �,I of securities — pledged as Cash collateral • Checking accounts - Fridley State Bank, Fridley , Minnesota 7 General Account $ (267 ,790) $ 200,000* Petty cash and change funds 5,500 7 Total cash $ (262,290) 7 Certificates of Deposit (included in investments) Fidelity Bank & Trust Company , Minneapolis $1 ,575,000 $1 ,605,000* First Northtown , Blaine 100,000 * Northwestern National Bank , Minneapolis 1 ,600,000 1 ,710,000* Northwestern National Bank, St. Paul 300,000 403,000* n Twin City Federal Savings & Loan , Fridley 100,000 * Marquette Bank , Columbia Heights 100,000 * First National Bank , Minneapolis 100,000 * First Federal Savings & Loan , Roseville 100,000 * Hennepin Federal Savings & Loan , Minneapolis 100,000 * 7 Northern Federal Savings & Loan , St. Paul 100,000 * Midwest Federal Savings & Loan , Minneapolis 100 ,000 * Home Federal Savings & Loan , Columbia Heights 100,000 * n Total investments in Certificates of Deposit $4,375,000 $3,715,000 *Additional security of $100 ,000 is provided by the Federal Deposit Insurance Corporation. SUMMARY STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS 7 ALL FUNDS YEAR ENDED DECEMBER 31 , 1976 n Cash Cash balance balance January 1 , December 31 , 7 Fund 1976 Receipts Disbursements 1976 General Fund $(164,737) $ 7 ,769 ,993 $ 7,805,289 $(200 ,033) n Special revenue funds (20,985) 1 ,366,747 1 ,314,831 30,931 General debt service funds 82,841 82,062 779 Capital Projects 81 66,266 65,717 630 Liquor Fund (23,276) 1 ,061 ,562 1 ,039,827 (1 ,541 ) n Water and Sewer Revenue Bond Fund (14,913) 1 ,402,105 1 ,335,950 51 ,242 Special assessment funds 49,065 10,810,664 11 ,003,939 (144,210) Trust and agency funds 5,000 5 ,088 (88) rin Total $(174,765) $22,565,178 $22,652,703 $(262 ,29),) fl -7- n Exhibit V r• CITY OF FRIDLEY, MINNESOTA COMBINED STATEMENT OF DELINQUENT TAXES RECEIVABLE BY FUNDS p. I 1973 & Funds Exhibit Total Prior 1974 1975 1976 General VII $74,206 $20,237 $8,194 $12,720 $33,055 Capital Improvement XVI 868 863 General Debt Service Fund XIV 1 ,980 545 242 409 784 Total $77,054 $20,782 $8,436 $13,129 $34,707 See accompanying Notes to Financial Statements. r -8- Exhibit VI ' ! CITY OF FRIDLEY, MINNESOTA r 71 BONDS PAYABLE - ALL FUNDS DECEMBER 31 , 1976 7 Issue Interest Maturity Principal date rate date amount ` I Special Assessment Debt Service Funds - Definitive Bonds 'l Improvement Bonds of 1960 January 1 , 1978 10/1/60 4.20% 1/1/78 $ 80,000 January 1 , 1979 4.20 1/1/79 75,000 fl January 1 , 1980 4.20 1/1/80 80,000 January 1 , 1981 4.20 1/1/81 70,000 January 1 , 1982 4.20 1/1/82 75,000 7 Total Improvement Bonds of 1960 Special Assessment Debt Service Fund $ 380,000 7 Improvement Bonds of 1962 February 1 , 1977 5/1/62 3.80 2/1/77 $ 10,000 February 1 , 1978 3.80 2/1/78 5,000 j l February 1 , 1979 3.80 2/1/79 10,000 $5,000 per year 3.80 2/1/80-82 15,000 Total Improvement Bonds of 1962 Special Assessment Debt n Service Fund $ 40 ,000 Improvement Bonds of 1963 7 $30,000 per year 1/1/63 3.80 1/1/78-79 $ 60,000 $35,000 per year 3.80 1/1/80-83 140,000 Total Improvement Bonds of 1963 Special Assessment Debt fl Service Fund $ 200,000 Refunding Bonds of 1964 7 i $105,000 per year 2/1/64 3.40 2/1/77-79 $ 315,000 February 1 , 1980 3.40 2/1/80 40,000 Total Refunding Bonds of 1964 Special Assessment Debt Service Fund $ 355,000 Improvement Bonds of 1965 7 $30,000 per year 5/1/65 3.30 2/1/77-78 $ 60,000 $30,000 per year 3.40 2/1/79-80 60,000 n February 1 , 1981 3.40 2/1/81 25,000 $25,000 per year 3.50 2/1/82-85 100,000 February 1 , 1936 3.50- 2/1 /86 20,000 Total Improvement Bonds of 1965 Special Assessment Debt �) Service Fund $ 265,000 -9- Exhibit VI Continued ^' CITY OF FRIDLEY, MINNESOTA BONDS PAYABLE - ALL FUNDS CONTINUED) DECEMBER 31 , 1976 ., Issue Interest Maturity Principal date rate date amount Special Assessment Debt Service " Funds - Definitive Bonds (Continued) Improvement Bonds of 1967 January 1 , 1978 10/1/67 4.40% 1/1/78 $ 130,000 $ 40,000 per year 4.40 1/1/79-82 160,000 $ 30,000 per year 4.50 1/1/83-87 150,000 January 1 , 1988 4.50 1/1/88 20,000 Total Improvement Bonds of 1967 Special Assessment Debt Service Fund $ 460,000 Improvement Bonds of 1972 January 1 , 1978 10/1/72 4.10 1/1/78 $ 150,000 $150,000 per year 4.40 1/1/79-80 300,000 $150,000 per year 4.60 1/1/81-82 300,000 $ 75,000 per year 4.80 1/1/83-84 150,000 .../Th $ 75,000 per year 5.00 1/1/85-86 150,000 January 1 , 1987 5. 10 1/1/87 75,000 January 1 , 1988 5.20 1/1/88 75,000 January 1 , 1989 5.20 1/1/89 50,000 $ 50,000 per year 5.25 1/1/90-91 100,000 $ 50,000 per year 5.30 1/1/92-94 150,000 Total Improvement Bonds of 1972 Special Assessment Debt Service Fund $1 ,500,000 Refunding Bonds of 1975 (Improvement Bond Portion) $98,276 per year 3/1/75 6.00 1/1/78-79 $ 196,552 January 1 , 1980 6.00 1/1/80 88,035 January 1 , 1981 6.00 1/1/81 47,250 January 1 , 1982 6.00 1/1/82 47,500 $50,000 per year 6.00 1/1/83-84 100,000 January 1 , 1985 6.00 1/1/85 40,000 ... $45,000 per year 6.00 1/1/86-88 135,000 January 1 , 1989 6.00 1/1/89 10,000 Total Refunding Bonds of 1975 Special Assessment Debt ". Service Fund $ 664,337 Special Assessment Fund Bonds of 1976 ^+ February 1 , 1977 2/1/76 3.75 2/1/77 $ 175,000 February 1 , 1978 4.00 2/1/78 175,000 ,� February 1 , 1979 4.10 2/1/79 175,000 r, February 1 , 1980 4.30 2/1/80 175,000 -10- Exhibit VI 1-1 Continued CITY OF FRIDLEY, MINNESOTA n BONDS PAYABLE - ALL FUNDS (CONTINUED) �, DECEMBER 31 , 1976 7 Issue Interest Maturity Principal date rate date amount fl Special Assessment Debt Service Funds - Definitive Bonds (Continued) 7 Special Assessment Fund Bonds of 1976 (Continued) February 1 , 1981 2/1/76 4.50% 2/1/81 $ 175,000 February 1 , 1982 4. 70 2/1/82 175,000 7 February 1 , 1983 4.90 2/1/83 175,000 February 1 , 1984 5.00 2/1/84 125 ,000 February 1 , 1985 5.10 2/1/85 75,000 � February 1 , 1986 5.25 2/1/86 25,000 ! I February 1 , 1987 5.40 2/1/87 25,000 February 1 , 1988 5.60 2/1/88 25,000 February 1 , 1989 5.80 2/1/89 25,000 7 February 1 , 1990 6.00 2/1/90 25,000 Total Special Assessment Fund Bonds of 1976 Special Assessment Debt Service Fund $1 ,550 ,000 7 Total Special Assessment Definitive Bonds $5,414,337 n General Debt Service Funds Civic Center Bonds 7 $25,000 per year 5/1/65 3. 30 2/1/77-78 $ 50,000 $30,000 per year 3.40 2/1/79-81 90,000 February 1 , 1982 3.50 2/1/82 30,000 n $35,000 per year 3.50 2/1/83-86 140,000 I Total Civic Center Bonds $ 310,000 7 Total General Debt Service Funds $ 310,000 REVENUE BONDS n Public Utilities Sinking Fund II Water No. 75 7 $50,000 per year 5/1/65 3.30 2/1/77-78 $ 100,000 $50,000 per year 3.40 2/1/79-81 150,000 $50,000 per year 3.50 2/1/83-87 300,000 7 February 1 , 1988 3.50 2/1/88 20,000 Total Water No. 75 Bonds $ 570,000 ./ fl J r , h it -11- li Exhibit VI Continued CITY OF FRIDLEY, MINNESOTA BONDS PAYABLE - ALL FUNDS (CONTINUED) DECEMBER 31 , 19 76 Issue Interest Maturity Principal date rate date amount Public Utilities Sinking Fund (Continued) Refunding Bonds of 1975 (Water Utility Portion) $51 ,724 per year 3/1/75 6.00 1/1/78-79 $ 103,448 $56,965 per year 6.00 1/1/80 56,965 $57,750 per year 6.00 1/1/81 57,750 $47,500 per year 6.00 1/1/82 47,500 Total Refunding Bonds of 1975 (Water Utility Portion) $ 265 ,663 Total Water and Sewer Revenue Bonds $ 835,663 Total Definitive Bonds $6 ,560,000 Special Assessment Debt Service Funds - Temporary Bonds r1 1975 Street 9/15/75 `7.00 9/15/78 $1 ,220,000 Water and Sewer No. 117 10/15/75 7.00 10/15/78 50,000 Water, Sewer and Storm Sewer No. 119 6/15/76 7.00 6/15/79 55,000 1976 Street 7/15/76 7.00 7/15/79 325,000 Total Special Assessment Temporary Bonds $1 ,650,000 Total bonds outstanding $8,210,000 r, n -12- • . FINANCIAL SECTION BY FUND • • • • • • • • • • ,.i 1 • . .., i • • • • Exhibit VII f CITY OF FRIDLEY , MINNESOTA GENERAL FUND BALANCE SHEET DECEMBER 31 , 1976 General fl ASSETS Cash (deficit) $ (200,033) El Investments , at cost 1 ,391 ,700 Accounts Receivable 30,977 Taxes receivable Delinquent 74,206 Unremitted 16,787 Delinquent special assessments receivable 6,607 Deferred special assessments receivable 10,769 Accrued interest receivable 223,492 Inventories , at cost 11 ,705 Prepaid expenses 52,127 Total assets $1 ,618,337 LIABILITIES , RESERVE AND FUND BALANCE Accounts payable $ 297,001 7 Deposits payable 15,047 Due to other funds 7,389 Reserve for uncollected taxes and special assessments 108,369 Fund balance Appropriated 356 ,335 Unappropriated 834,196 Total liabilities , reserves and fund balance $1 ,618,337 I See accompanying Notes to Financial Statements. EI -13- Exhibit VIII • CITY OF FRIDLEY, MINNESOTA GENERAL FUND ANALYSIS OF FUND BALANCE YEAR ENDED DECEMBER 31 , 1976 General Fund balance January 1 , 1976 $1 ,054,159 Adjustment of beginning balance $ 4,997 Revenue 3,412,839 Expenditures 3,281 ,464 Fund balance December 31 , 1976 $1 ,190,531 See accompanying Notes to Financial Statements. r� -14- CITY OF FRIDLEY, MINNESOTA Exhibit IX n GENERAL FUND II STATEMENT OF REVENUE - YEARS ENDING DECEMBER 31 , 1975 AND 1976 (11 1976 1975 Budget Actual Actual "1 General property and other taxes Current ad valorem $1 ,414,139 '$1 ,449,317 $1 ,330,877 Delinquent ad valorem 15,900 30,588 24,556 Tax forfeit 4,527 1 ,069 4,271 Homestead Credit 300,000 281 ,231 260,262 $1 ,734,566 $1 ,762,205 $1 ,619,966 ' I Licenses and permits Contractors $ 7,239 $ 7,900 $ 7,475 Business 53,612 46,225 36,281 All other 7,219 8,188 7,784 Permits 57,380 82,138 60,188 r, $ 125,450 $ 144,451 '1/ $ 111 ,728 j Intergovernmental revenue C.E.T.A. $ 94,895 $ / 92,912 $ 41 ,077 ri Civil Defense 7,500 ' 7,523 5,408 State Aid - Maintenance 25,884 29,253 23,342 Sales tax 665,350 '676,695 577,045 n Grants 2,025 / 2,000 2,000 ' 1 Section 8 -0- ' 3,023 - -0- $ 795,654 $ 811 ,4064/ $ 648,872 (A-7Charges for current services General Government $ 9,922 $ / 8,874 $ 4,670 Public Safety 10,118 ' 11 ,598 15,419 n Conservation of Health 6,218 / 12,212 7,187 II Recreation 31 ,620 30,516 32,660 $ 57,878 $ 63,200'1/ ir 59,936 riFines and forfeitures $ 55,000 $ J 66,453^/ $ 62,902 Revenue from use of money and property n Interest $ 57,434 $ ' 73,000 $ 58,280 it Rents 6,450 ✓ 10,939 9,846 $ 63,884 $ J 83,939 v $ 68,126 n Transfers from other funds II Liquor Fund $ 85,000 $ '. 85,000 $ 75,000 Revenue Sharing Fund 229,043 '' 229,043 196,776 II Other Funds 66,000 'i 71 ,345 63,917 $ 380,043 $ 385,388'V $ 335,693 ri Other revenue $ 75,003 $0 95,797 $ 47,627 Prior years' fund balance $ 92,735 $ -0- _ $ -0- n Total revenue $3,380,213 $3,412,839 $2,954,850 ,Ill See accompanying Notes to Financial Statements. 7 -15- rl CITY OF FRIDLEY, MINNESOTA Exhibit X GENERAL FUND STATEMENT OF EXPENDITURES - YEARS ENDING DECEMBER 31 , 1975 AND 1976 HTh 1976 1975 ^ Budget Actual Actual GENERAL GOVERNMENT Mayor and Council Personal Services $ 42,142 $ 42,581 $ 45,651 Other Expenses 29,450 14,703 24,374 $-71 ,592 $ 57,284w ' $ 70,025 Planning Commission Personal Services $ 14,538 $ 15,351 $ 14,062 Other Expenses 4,745 4,216 872 Capital Outlay -0- 125 -0- $ 19,283 $ 19,692/ $ 14,934 Other Commissions Personal Services $ 10,016 $ 4,772 $ 3,127 Other Expenses 1 ,950 3,750 816 ., Capital Outlay -0- 48 500 $ 11 ,966 $ 8,570 , $ 4,443 City Manager Personal Services $101 ,905 $ 91 ,928 $ 74,686 Other Expenses 39,850 30,471 23,737 Capital Outlay -0- 219 631 '"'°, $141 ,755 $122,618/- 99,054 Personnel ^, Personal Services $ 11 ,187 $ 11 ,866 $ 14,034 Other Expenses 3,150 __Mil 1 ,893 $ 14,337 14,717,/ $ 15,927 Legal Personal Services $ -0- $ -0- $ 77 Other Expenses 41 ,300 39,011 38,509 ,,, $ 41 ,300 $ 39,011 $ 38,509 Elections Personal Services $ 13,222 $ 13,209 : $ 5,446 Other Expenses 2,630 2,139 2,155 $ 15,852 $ 15,348 ./ $ 7,601 ., Finance Personal Services $ 70.,822 $ 71 ,651 $ 68,410 Other Expenses 45,690 37,352 38,221 ., Capital Outlay 635 1 ,608 840 $117,147 $110,611 , $10,471 Assessing Personal Services $ 73,599 $ 80,841 $ 69,574 ` 1..,, Other Expenses 8,450 6,633 7,622 Capital Outlay 584 961 872 71 $ 82,633 $ 88,435, $ 78,068_ Total General Government $515,865 $476,286 $436,032 See accompanying Notes to Financial Statements. -16- CITY OF FRIDLEY, MINNESOTA EXhibit X_ ^ Continued GENERAL FUND STATEMENT OF EXPENDITURES - YEARS ENDING DECEMBER 31 , 1975 AND 1976 1976 1975 (.."' Budget Actual Actual PUBLIC SAFETY 7 Police Personal Services $760,376 $747,604 $677,700 Other Expenses 83,450 85,609 80,338 7 Capital Outlay 42,350 41 ,177 34,627 $886,176 $874,390 - $792,665 Animal Control Personal Services $ 1 ,431 $ 103 $ 459 Other Expenses 13,600 11 ,539 11 ,520 $ 15,031 $ 11 ,642,- $ 11 ,979 7 Fire Personal Services $205,751 $214,522 $158,590 fl Other Expenses 32,400 27,264 33,434 Capital Outlay 5,254 2,055 3,639 1243,405 $243,841 -- $195,663 fl Civil Defense Personal Services $ 12,214 $ 12,219 $ 10,743 ^ Other Expenses 6,145 3,371 3,724 II Capital Outlay 1 ,000 718 _Z AN $ 19,359 $ 16,308 16,467_ Total Public Safety $1 ,163,971 $1 ,146,181 $1 ,016,774 (7 CIVIC CENTER n Personal Services $ 35,855 $ 35,248 $ 30,517 71 Other Expenses 48,135 36,933 43,186 Capital Outlay 7,000 7,886 4,050 Total Civic Center $ 90,990 $ 80,067,, $ 77,753 ri PUBLIC WORKS ri Community Development and Health I Personal Services $143,770 $152,922 $113,986 Other Expenses 34,355 28,752 33,654 Capital Outlay 450 720 3,386 ri $178,575 $182,394_, $151 ,026 Engineering ri Personal Services $ 67,617 $ 66,063 $ 61 ,316 Other Expenses 15,165 13,984 17,963 Capital Outlay 5,175 5,060 437 ri $ 87,957 $ 85,107 S 79,716 Public Works � Personal Services $227,901 $208,106 $210,747 I Other Expenses 266,206 249,538 214,021 Capital Outlay 141 ,611 154,481 100,394 $635,718 $612,125 ., $525,162 -^ Total Public Works $902,250 $879,626 $755,904 See accompanying Notes to Financial Statements. I T- -17- Exhibit X Continued CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF EXPENDITURES - YEARS ENDING DECEMBER 31 , 1975 AND 1976 1976 1975 Budget Actual Actual PARKS AND RECREATION Naturalist Personal Services $ 58,971 $ 50,116 $ 46,782 Other Expenses 46,125 53,088 27,725 Capital Outlay 6,300 481 2,741 -• $111 ,396 $103,685 $ 77,248 Parks Personal Services $140,458 $138,757 $127,646 Other Expenses 76,749 84,078 75,188 Capital Outlay 121 ,190 140,625 92,091 $338,397 $363,460 $294,925 Recreation Personal Services $208,694 $178,071 $164,712 Other Expenses 48,650 40,969 45,500 Capital Outlay -0- 13,119 597 $257,344 $232,159 $210,809 "."") Total Parks and Recreation $707,137 $699,304 $582,982 • RESERVE FOR CONTINGENCIES Total Reserve for Contingencies $ -0- $ -0- $ -0- .. Total Expenditures $3,380,213 $3,281 ,464 $2,869,445 / See accompanying Notes to Financial Statements. JJ -18- 1 Exhibit XI CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUNDS BALANCE SHEETS DECEMBER 31 , 1976 Municipal Revenue Anti- Combined State-Aid Sharing Recession ASSETS Cash (deficit) $ 30 ,931 $ 29,268 $(21 ,400) $23,063 Investments , at cost 1 ,050 ,980 976,833 74,147 Accounts receivable I Federal Government 45,868 45,868 Other 66,668 66,668 Total assets $1 ,194,447 $1 ,072 ,769 $ 98,615 $23,063 I LIABILITIES, RESERVE AND FUND ' I BALANCE Reserve for construction $ 66,668 $ 66,668 Fund balance Appropriated 1 ,021 ,880 890,117 $108,700 $23,063 Unappropriated 105 ,899 115,934 (10,085) fl Total 1 abi 1 ties , reserves and fund balance $1 ,194,447 $1 ,072,769 $ 98,615 $23,063 n ! I See accompanying Notes to Financial Statements. jl n I -19- 11 Exhibit XII CITY OF FRIDLEY , MINNESOTA '-1 SPECIAL REVENUE FUNDS ANALYSIS OF FUND BALANCES YEAR ENDED DECEMBER 31 , 1976 ii Municipal Revenue Youth Anti- ^ Combined State Aid Sharing Service Recession Fund balance, January 1 , 1976 $ 998,550 $ 874,977 $123,558 $15 $ -0- I ! Revenue $ 560,862 $ 333,699 $204,100 $23,063 Expenditures 431 ,633 202 ,575 229,043 $15 Fund balance , December 31 , 1976 $1 ,127,779 $1 ,006,101 $ 98,615 $-0- $23,063 See accompanying Notes to Financial Statements. n r \ -20- Exhibit XIII :711 CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUNDS STATEMENTS OF REVENUE AND EXPENDITURES YEAR ENDED DECEMBER 31 , 1976 Municipal Revenue Youth Anti fl Combined State-Aid Sharing Service Recession Revenue State-aid construction apportionment $110,826 $110,826 Federal Grants 221 ,926 $198,863 $23,063 Interest on investments 60,329 55,092 5,237 Transfers from 1975 Street ^-, Construction 167,781 167,781 -1 Total revenue $560,862 $333,699 $204,100 $-0- $23,063 Expenditures Transfers to other Funds General Fund $295,058 $ 66,000 $229,043 $15 1975 Street Construction Fund 90,386 90,386 1976 Street Construction Fund 20,440 20,440 1976 Street, principal and interest 25,749 25,749 Total expenditures $431 ,633 $202,575 $229,043 $15 $-0- ^1 Revenue over (under) expenditures $129,229 $131 ,124 ($24,943) ($15) $23,063 1 See accompanying Notes to Financial Statements I it _71 -21- ' 2 Exhibit XIV it F4 CITY OF FRIDLEY, MINNESOTA iTh GENERAL DEBT SERVICE FUND r. BALANCE SHEET - DECEMBER 31 , 1976 Civic Center r, Bonds of 1965 MR ASSETS Cash $ 779 Investments 45,930 fl Taxes receivable Delinquent 1 ,980 Unremitted 392. n iI Total assets $ 49,081 RESERVE AND FUND BALANCE Reserve for uncollected taxes receivable $ 2,372 Fund balance 46,709 Total reserve and fund balance $ 49,081 n See accompanying Notes to Financial Statements. 7 22- ., Exhibit XV �1 CITY OF FRIDLEY, MINNESOTA (-71 GENERAL DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES AND FUND BALANCE YEAR ENDED DECEMBER 31 , 1976 Civic Center Bonds of 1965 Fund balance, January 1 , 1976 $ 44,145 T Revenue Property taxes $ 37,486 Interest on investments 1 ,211 $ 38,697 Disbursements Bonds $ 25,000 Interest 11 ,073 ^-1 Fiscal agent service charge 60 Total disbursements $ 36,133 Fund balance, December 31 , 1976 $ 46,709 See accompanying Notes to Financial Statements. .� 7 r) T -23- Exhibit XVI CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECT FUNDS BALANCE SHEETS DECEMBER 31 , 1976 Capital Islands North Combined Improvement of Peace Park •, ASSETS Cash $ 630 $ 454 $ (437) $ 613 Investments 61 ,032 38,060 22,972 '1 Taxes receivable Delinquent 868 868 Unremitted 395 395 Grants receivable 7,000 7,000 Due from other funds 7,389 7,389 Total assets $ 77,314 $47,166 $ 6,563 $23,585 1 LIABILITIES AND FUND BALANCE n Contracts payable $ 48,000 $ 48,000 Reserve for taxes 1 ,263 $ 1 ,263 r1 Fund balance Appropriated (17,852) (41 ,437) $23,585 Unappropriated 45,903 45,903 Total liabilities and fund balance $ 77,314 $47,166 $ 6,563 $23,585 See accompanying Notes to Financial Statements. T -1 -24- Exhibit XVII fl CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECT FUNDS ANALYSIS OF FUND BALANCE DECEMBER 31 , 1976 Capital Islands North Combined Improvement of Peace Park Fund balance, January 1 , 1976 $(47,919) $ -0- $(47,919) $ -0- Revenue $ 80,655 $45,903 $ 7,000 $27,752 Expenditures 4,685 -0- 518 4,167 T Fund balance, December 31 , 1976 $ 28,051 $45,903 $(41 ,437) $23,585 T fl T T T See accompanying Notes to Financial Statements. -25- 1 11 Exhibit XVIII fm14 CITY OF FRIDLEY , MINNESOTA nCAPITAL PROJECT FUNDS STATEMENTS OF REVENUE AND EXPENDITURES YEAR ENDED DECEMBER 31 , 1976 I1 Capital Islands North Combined Improvement of Peace Park fl Revenue Property tax $ 38,060 $ 38,060 II Homestead Credit 7,389 7,389 ' t Interest on investments 1 ,206 454 $ 752 Grants 34,000 $ 7,000 27,000 II Total revenue $ 80,655 $ 45,903 $ 7,000 $ 27,752 li Expenditures 17' Interest $ 180 $ 180 Other 4,505 338 $ 4,167 n Total expenditures $ 4,685 $ -0- $ 518 $ 4,167 Revenue over (under) 11 expenditures $ 75,970 $ 45,903 $ 6,482 $ 23,585 11 n nSee accompanying Notes to Financial Statements. El n jl -26- Exhibit XIX n (11 CITY OF FRIDLEY , MINNESOTA LIQUOR FUND 11 BALANCE SHEET DECEt ER 31 , 1976 n 1976 1975 I I ASSETS I I Current assets Cash $ (1 ,541 ) $(23,276) n Investments , at cost plus accrued interest 215,191 196,784 II Accounts receivable - Anti-trust 1 ,679 1 ,736 Inventory, at cost 130,494 127,851 Contract for deed receivable 14,128 13,103 Prepaid expenses 7,318 Total current assets $359,951 $323,516 fl Property, plant and equipment, substantially all at cost Land and buildings $195,600 $195,600 furniture, fixtures and equipment 62,926 62,826 Signs and automotive 13,194 13,194 $271 ,720 $271 ,620 Less accumulated depreciation 50,467 42,291 Net property, plant and equipment $221 ,253 $229,329 (71 Other assets Contracts for deed receivable, less current portion $120,814 $134,943 Anti-trust accounts receivable, less current portion 3,353 5,107 I ` Total contracts for deed and anti-trust receivable $124,167 $140,050 Total assets $705,371 $692,895 II LIABILITIES, RESERVE AND RETAINED EARNINGS II Current liabilities I Accounts payable .-- 1\ 1 ,693 $ 6,389 n Accrued sales tax 5,021 Total current liability • ,714 $ 6,389 Reserve for Anti-trust -' - 4, lv $ 5,032 $ 6,844 I I Retained earnings $693,625 $679,662 fl Total liabilities , reserve and retained earnings $705,371 $692,895 See accompanying Notes to Financial Statements. 1 -27- n n Exhibit XX 11 CITY OF FRIDLEY, MINNESOTA LIQUOR FUND ANALYSIS OF CHANGES IN RETAINED EARNINGS n YEAR ENDED DECEMBER 31 1 ! 1976 1975 Retained earnings � + January 1 $679,662 $663,723 FlNet Income 98,963 90,939 Transferred to General Fund 85,000 75,000 n Retained earnings O December 31 $693,625 $679,662 I 11 11 See accompanying Notes to Financial Statements. 1;1, p p fl -28- n CITY OF FRIDLEY, MINNESOTA fell LIQUOR FUND STATEMENT OF INCOME O YEAR ENDED DECEMBER 31 n Combined Store No. 2 1976 1975 1976 1975 (1 Sales $1 ,061 ,562 $1 ,100,224 -0- -0- n Cost of Sales 847,082 868,456 -0- -0- 11 Gross Profit $ 214,480 $ 231 ,768 -0- -0- (� Percent of sales 20.2 21 .1 -0- -0- I � Operating expenses $ 151 ,851 $ 169,453 -0- -0-Percent of sales 14.3 15.4 -0- -0- il Operating profit (loss) $ 62,629 $ 62,315 -0- -0- Percent of sales 5.9 5.7 -0- -0- Other income $ 36,334 $ 28,624 $4,752 $5,217 Percent of sales 3.4 2.6 -0- -0- Net income $ 98,963 $ 90,939 $4,752 $5,217 Percent of sales 9.3 8.3 -0- -0- _ n See accompanying Notes to Financial Statements. 1 ) il H f1 11 11 10-t fl -29- fl 1 1 Exhibit XXI ii,) fl n Store No. 3 Store No. 4 fl1976 1975 1976 1975 fl $540,235 $538,352 $521 ,327 $561 ,872 432,207 431,612 414,875 436,844 11 II $108,028 $106,740 $106,452 $125,028 20.0 19.8 20.4 22.3 fl $ 76,287 $ 89,051 $ 75,564 $ 80,402 14.1 16.5 14.5 14.3 $ 31 ,741 $ 17,689 $ 30,888 $ 44,626 ill 5.9 3.3 5.9 7.9 $ 19,171 $ 15,110 $ 12,411 $ 8,297 3.5 2.8 2.4 1.5 $ 50,912 $ 32,799 $ 43,299 $ 52,923 11 9.5 6. 1 8.3 9.4 n 11 11 fl rl n -30- 11 Exhibit XX I I (l CITY OF FRIDLEY, MINNESOTA LIQUOR FUND errl STATEMENT OF OPERATING EXPENSES YEAR ENDED DECEMBER 31 II Combined Store No. 3 Store No. 4 fl 1976 1975 1976 1975 1976 1975 Operating Expense II Selling Salary - Clerks $ 72,721 $ 75,706 $ 35,849 $ 40,401 $ 36,872 $ 35,305 Bags & Wrapping 2,590 2,738 1 ,347 1 ,439 1 ,243 1 ,299 (� Uncollectable Checks 136 1 ,527 82 728 54 799 II Cash Shortage 16 38 (31 ) 51 47 (13) Other Selling Expenses -0- 1 ,586 -0- 1 ,585 -0- 1 n $ 75,463 $ 81 ,595 $ 37,247 .$ 44,204 $ 38,216 $ 37,391 II Percent of Sales 7.1 7.4 6.9 8.2 7.3 6.7 n Overhead 11 Utilities $ 8,585 $ 9,288 $ 5,641 $ 6,303 $ 2,944 $ 2,985 Insurance 7,394 7,100 3,870 3,851 3,524 3,249 (� Rent 8,057 7,932 -0- -0- 8,057 7,932 ( I Laundry 885 872 430 381 455 491 Repair & Maintenance 1 ,864 4,486 808 2,507 1 ,056 1 ,979 Supplies 185 844 143 655 42 189 Communications 1 ,039 1 ,298 618 788 421 510 ' Alarm Service 485 725 274 397 211 328 Advertising 1 ,379 970 689 300 690 670 il Depreciation 8,175 8,731 6,885 7,184 1 ,290 1 ,547 Other Overhead Expense 2,475 2,328 1 ,429 1 ,302 1 ,046- 1 ,026 $ 40,523 $ 44,574 $ 20,787 $ 23,668 $ 19,736 $ 20,906 il Percent of Sales 3.8 4.1 3.8 4.4 3.8 3.7 General Management Expense $ 18,508 $ 17,177 $ 9,419 $ 8,405 $ 9,089 $ 8,772 [1 Inventory Control 6,235 5,329 3,173 2,607 3,062 2,722 Accounting 5,699 9,058 2,900 4,432 2,799 4,626 (� Warehouse Expense 212 3,024 109 1 ,480 103 1 ,544 1I Data Processing 4,575 7,533 2,328 3,686 2,247 3,847 Other General n Overhead Expense 636 1 ,163 324 569 312 594 II $ 35,865 $ 43,284 $ 18,253 $ 21 ,179 $ 17,612 $ 22,105 Percent of Sales 3.4 3.9 3.4 3.9 3.4 3.9 II Total Operating Expense $151 ,851 $169,453 $ 76,287 $ 89,051 $ 75,564 $ 80,402 Total Percent of Sales 14.3 15.4 14.1 16.5 14.5 14.3 See accompanying Notes to Financial Statements. 11 -31- 11 11 Exhibit XXIII CITY OF FRIDLEY , MINNESOTA LIQUOR FUND STATEMENT OF CHANGES IN FINANCIAL POSITION 11 YEAR ENDED DECEMBER 31 , 1976 SOURCE OF FUNDS 11 flOperations : Net income for the year $ 98,963 tl - Items not requiring current outlay of funds Depreciation 8,175 Decrease in long term contracts receivable 14,129 Anti-trust receivables used 1 ,754 Total operations $123,021 I1 APPLICATION OF FUNDS Purchase of fixed assets $ 100 17' Transfer to General Fund 85,000 Increase in working capital 36,110 Decrease in anti-trust reserve 1 ,811 Total application of funds $123,021 II Various Elements of Net Increase in Working Capital : R Cash $ 21 ,735 ( 1 Investments 18,408 Accounts receivable (57) Inventories 2,643 flContract for deed receivable 1 ,025 t Accounts payable (326) (� Prepaid expenses (7,318) li Total $ 36,110 11 n 11 -32- CITY OF FRIDLEY, MINNESOTA Exhibit XXIV WATER AND SEWER REVENUE BOND FUND ri BALANCE SHEET December December rill 31 , 1976 31 , 1975 ASSETS n Current Assets ' I Cash (deficit) $ 10,035 $ (14,913) Investments, at cost 1 ,316,460 1 ,112,598 II Accounts receivable 292,207 253,780 Inventory of meters 5,235 5,520 Prepaid expenses 6,392 , Total current assets $1 ,623,937 $1 ,363,377 Restricted assets - Revenue Bond Accounts fl Sinking Account Cash $ 41 ,207 $ Investments, at cost 248,459 286,308 Reserve Account Investments 32,484 Accounts receivable Metropolitan Waste Control Commission 428,401 448,901 Total restricted assets $ 718,067 $ 767,693 fl Property, plant and equipment, substantially all at cost Land and improvments $ 154,590 $ 154,590 n Buildings 737,068 737,068 II Machinery and equipment 1 ,815,338 1 ,808,449 Other improvements • 158,508 131 ,645 $2,865,504 $2,831 ,752 Less accumulated depreciation 997,492 887,558 1 Net property, plant and equipment $1 ,868,012 $1 ,944,194 Total assets $4,210,016 $4,075,264 II LIABILITIES, RESERVES AND RETAINED EARNINGS fl Current liabilities Accounts payable - Other $ 12,862 $ 4,736 n Bonds payable within one year 101 ,724 96,607 [ I Total current liabilities $ 114,586 $ 101 ,343 Other liabilities 733,939 $ 835,663 ' 1 Bonds payable less portion due within one year $ Deferred credit - Metropolitan Waste Control Commission 428,401 448,901 Deposits payable 708 818 Total other liabilities $1 ,163,048 $1 ,285,382 ri Reserves Reserve for Sinking Account debt service t $ 156,775 $ 195,275 fl Total reserves 75 Reserve for Reserve Account $ 156,775 $ 227,759 tained earni^nos V $2,775,607 $2,460,780 eific k‘ �b tal li bilities, reserves and retained earnings $4,210,016 $4,075,264 ri See accompanying Notes to Financial Statements. n -33- lExhibit XXV Pim CITY OF FRIDLEY, MINNESOTA n WATER AND SEWER REVENUE BOND FUND STATEMENT OF CHANGES IN FINANCIAL POSITION n YEAR ENDED DECEMBER 31 , 1976 1976 1975 Source of Funds 11 Operations: 11 Net income for the year $255,236 $235,414 Items not requiring current outlay of funds Depreciation 114,455 110,181 11 Metropolitan Sewer Board credits used 20,500 16,935 Ii Transfer-in from Reserve & Princ. & Int. accounts 35,052 Write-off of accounts payable 1 ,733 Total operations $426,976 $362,530 `�`�.4 .),,2 ,-164°0/ II Application of Funds 4,.b _ aleer,fr e' tiki\I-r7 5 i ),,- n. Additions to Utility Plant in Service (Fixed Assets Purchased) $ 38,273 $149,939 Decrease in other liabilities (Deposits Payable) 110 2,700 Payment of Long-Term Debt 5,117 61 ,607 11 Transfer to Other Funds (Principal & Interest Accounts) 97,533 107,534* Transfer to Other Funds - Special Assessment Funds 38,626 24,130 Increase in Working Capital 247,317 16,620 II Total $426,976 $362,530 II Various Elements of Net Increase in Working Capital Cash and Investments $228,810 $ 68,687 11 Accounts receivable 38,427 9,096 11 Inventory (285) (578) Prepaid Expenses (6,392) (6,393) 11 (Increase) decrease in current liabilities Accounts payable (8,126 7,415 Current portion of long-term payable (5,117) (61 ,607) 11 Increase in working capital $247,317 $ 16,620 -)71). *Net of transfers plus interest earned, less interest expense r , See accompanying Notes to Financial Statements ri -34- ri CITY OF FRIDLEY, MINNESOTA WATER AND SEWER UTILITIES REVENUE BOND FUND OPERATION AND MAINTENANCE ACCOUNT STATEMENT OF INCOME YEAR ENDED DECEMBER 31 f1 1976 1975 I Combined Combined n Operating revenue II Water sales and sewer rents $1 ,205,204 $1 ,103,656 Connection permits 7,275 3,945 (� Sales of materials and miscellaneous service 74,484 61 ,659 ' I Total operating revenue $1 ,286,963 $1 ,169,260 Operating expenses II Source of supply $ 481 ,259 $ 419,239 Power and pumping 150,558 127,151 Purification 60,229 55,567 Transmission and distribution 198,159 180,510 Customer accounting and collecting 72,852 69,195 Administrative and general 30,618 39,347 (� Depreciation 114,455 109,909 II Total operating expenses $1 ,108,130 $1 ,000,918 Operating income $ 178,833 $ 168,342 II Other income and (expense) Interest income - operating accounts $ 92,185 $ 91 ,822 rl Interest income - princ. & int. & res. accounts 20,335 20,237 Connection charges 2,620 816 Interest expense (38,500) (45,380) il Fiscal agents' charges - princ. and int. accounts (237) (423) Net income $ 255,236 $ 235,414 n ANALYSIS OF CHAGES IN RETAINED EARNINGS II YEAR ENDED DECEMBER 31 n Retained earnings January 1 $2,460,780 $2,189,631 Add Adjustment of future principal and interest $ $ (5,116) Net income 255,236 235,414 Current value credits used 20,500 16,935 n Transfer-in - General Fund 5,000 5,000 II Reduction in reserve for debt service 38,500 45,380 Write-off of accounts payable 1 ,733 Deduct Transfer-out - special assessment fund (38,626) (24,130) Increase (decrease) in reserve - reserve accounts 32,484 (2,334) eil Retained earnings, December 31 $2,775,607 $2,460,780 See accompanying Notes to Financial Statements ri -35- n 11 Exhibit XXVI N 1976 1975 1976 1975 Water Water Sewer Sewer $647,403 $509,830 $557,801 $593,826 " 2,415 1 ,240 4,860 2,705 58,054 43,104 16,430 18,555 $707,872 $554,174 $579,091 $615,086 $ 1 ,499 $ 2,898 $479,760 $416,341 127,441 102,910 23,117 24,241 60,229 55,567 94,287 82,815 103,872 97,695 50,012 45,929 22,840 23,266 25,342 27,843 5,276 11 ,504 102,138 101 ,570 12,317 8,339 $460,948 $419,532 $647,182 $581 ,386 $246,924 $134,642 $(68,091 ) $ 33,700 F F F 11 II -36- Exhibit XXVII I I rrl CITY OF FRIDLEY, MINNESOTA WATER AND SEWER REVENUE BOND FUND rl ANALYSIS OF CHANGES IN SINKING AND RESERVE ACCOUNTS YEAR ENDED DECEMBER 31 , 1976 II Sinking Reserve ri Combined Account Account I Cash Balance, January 1 , 1976 $ -0- $ -0- $ -0- n Receipts I ' Interest on investments $ 20,335 $ 18,123 $ 2,212 Transfer from Water and Sewer rl Operating Fund 120,935 120,935 Investments sold 318,792 286,308 32,484 Total receipts $460,062 $425,366 $ 34,696 [1 Disbursements Bonds $ 96,607 $ 96,607 $ Interest 38,500 38,500 rl Fiscal agents service charge 237 237 Transfer to Operating fund (13,857) (15,032) 1 ,175 Investments purchased 297=,368 263,847 33,521 Total disbursements $418,855 $384,159 $ 34,696 Cash balance, December 31 , 1976 $ 41 ,207 $ 41 ,207 $ -0- Investment balance, January 1 , 1976 $318,791 $286,307 32,484 Additions 297,368 263,847 33,521 rl Deductions (367,700) (301 ,695) (66,005) Investment balance, December 31 , 1976 $248,459 $248,459 $ -0- (1 n 1 1 See accompanying Notes to Financial Statements n n -37- 1 1 1 11 Exhibit XXVIII CITY OF FRIDLEY, MINNESOTA ri SPECIAL ASSESSMENT FUNDS BALANCE SHEETS flDECEMBER 31 , 1976 Special Special Special 11 Assessment Assessment Improvements Combined Construction Debt Service Revolving n ASSETS flCash (deficit) $ (144,210) $173,499 $ (327,858) $ 10,149 Investments, at cost 1 Government securities 3,033,605 2,642,173 391 ,432 City of Fridley temporary bonds 1 ,650,000 1 ,650,000 IISpecial assessments receivable Delinquent 706,413 691 ,430 14,983 n Deferred ' ) Principal 4,744,622 4,631 ,990 112,632 flTotal assets $ 9,990,430 $173,499 $ 9,287,735 $529,196 LIABILITIES, RESERVES, IN AND FUND BALANCE ri Accounts and contracts payable $ 205,425 $205,425 Deposits payable 171 ,546 $171 ,546 Bonded indebtedness - Future maturities Definitive bonds II Principal 5,414,337 $ 5,414,337 Temporary bonds (held by City of Fridley) 11 Principal 1 ,650,000 1 ,650,000 11 Fund Balance 2,549,122 (31 ,926) 2,223,398 357,650 Total liabilities, 1 reserves and fund balance $ 9,990,430 $173,499 $ 9,287,735 $529,196 ! t See accompanying Notes to Financial Statements. il n 11 -38- Exhibit XXIX (l CITY OF FRIDLEY, MINNESOTA SPECIAL ASSESSMENT FUNDS ANALYSIS OF FUND BALANCES YEAR ENDED DECEMBER 31 , 1976 II Fund Reduction Fund Balance of Future Balance (� January Expendi- Taxes December II 1 , 1976 Revenue tures Receivable 31 , 1976 FUND - — S rl pecial Assessment Construction Funds $ 543,215 $ 816,339 $1 ,391 ,480 $ -0- $ (31 ,926) Special Assessment rl Debt Service Funds 2,043,042 8,118,482 4,643,164 3,294,962 2,223,398 Revolving Fund 311 ,743 48,689 2,782 -0- 357,650 fl Total $2,898,000 $8,983,510 $6,037,426 $3,294,962 $2,549,122 rl n (71) n n See accompanying Notes to Financial Statements. n II n (11-11 n -39- n n Exhibit XXX CITY OF FRIDLEY, MINNESOTA y AND DISBURSEMENTS STATEMENTS OF CASH RECEIPTS D n YEAR ENDED DECEMBER 31 , 1976 t1 Special Special Special Assessment Assessment Improvements flCombined Construction Debt Service Revolving Cash balance, January 1 , 1976 $ 49,065 $ (37,482) $ 113,664 $ (27,117) . flReceipts Proceeds from sale of bonds 1 ,908,920 380,000 1 ,528,920 Special assessments 1 ,684,015 1 ,641 ,612 42,403 n Penalty and interest on special assessments 34,412 33,780 632 Interest on investments 309,397 53,804 233,805 21 ,788 II Investments sold 4,317,942 801 ,716 3,146,416 369,810 Escrow deposits 40,893 40,893 Transfers from other funds 2,506,627 369,313 2,137,314 11 Other 8,458 8,458 Total Receipts $10,810,664 $1 ,613,291 $8,721 ,847 $ 475,526 n Disbursements Capital outlay ri) Transfers to other funds - Interest during construction $ 7,210 $ 7,210 Retirement of bonds Principal 2,983,393 $2,983,393 Interest 431 ,239 431 ,239 Investments purchased 4,851 ,384 908,139 3,551 ,813 $ 391 ,432 Transfers to other funds 2,353,567 115,191 2,195,240 43,136 11 Refund of escrow deposits 910 910 Other 376,236 371 ,770 1 ,684 2,782 ti Total disbursements $11 ,003,939 $1 ,402,310 $9,163,369 $ 438,260 Cash balance, December 31 , 1976 $ (144,210) $ 173,499 $ (327,858) $ 10,149 Ii 11 n See accompanying Notes to Financial Statements. n fl -40- Exhibit XXXI II • CITY OF FRIDLEY, MINNESOTA r ' I LEY, MIWN OT TRUST AND AGENCY FUNDS INDUSTRIAL REVENUE BOND FUND BALANCE SHEET DECEMBER 31 , 1977 (l ASSETS n Cash $ (88) Investments 4,734 Total Assets $ 4,646 11 LIABILITIES AND FUND BALANCE II Deposits payable $ 4,646 n Fund balance -0- 11 Total liabilities and fund balance $ 4,646 rl STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS YEAR ENDED DECEMBER 31 , 1976 I Cash balance, January 1 , 1976 $ -0- Receipts I_I Deposits $ 5,000 Total Receipts $ 5,000 II Disbursements Investments Purchased $ 4,734 ri Other Expenses 354 Total disbursements $ 5,088 fl Cash balance, December 31 , 1976 $ (88) (1 II See accompanying Notes to Financial Statements ell n -41- 11 flExhibit XXXII CITY OF FRIDLEY, MINNESOTA 1 STATEMENT OF GENERAL FIXED ASSETS DECEMBER 31 , 1976 11 General fixed assets Land $ 1 ,215,789 Building and structures 1 ,053,998 Improvements other than buildings 22,011 ,191 Furniture, fixtures, and office equipment 200,633 Machinery and equipment 801 ,847 n Construction in progress 148,700 11 Total general fixed assets $25,432,158 Investment in general fixed assets Special assessments $21 ,379,196 11 State-aid 198,057 1 General fund 2,398,167 Municipal liquor dispensary 15,260 (� Contributions 582,589 ' t General obligation bonds 856,597 flWater and sewer utilities 2,292 11 Total investment in general fixed assets $25,432,158 fl See accompanying Notes to Financial Statements. n 11 -42- Exhibit XXXIII it n CITY OF FRIDLEY , MINNESOTA STATEMENT OF GENERAL LONG-TERM DEBT (� DECEMBER 31 , 1976 ' I n Amount available and to be provided for the payment II of general long-term debt Amount available in General Debt Service Fund $ 49,081 Amount to be provided by future taxes 526,151 ( I Total available and to be provided $575,232 General long-term debt payable Serial bonds $310,000 Contracts - City Garage and Garage Addition 171 ,851 fi Fund balance - Unappropriated 93,381 $575,232 II n See accompanying Notes to Financial Statements. n n n -43- n II p ^ CITY OF FRIDLEY IJ•�l NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31 , 1976 p Note 1 - Summary of Significant Accounting Policies The City statements are presented on the accrual basis of accounting with the following minor exceptions. 11 (a) General property taxes - revenue is recognized in the year of collection ; (b) Interest expense on general bonded indebtedness and special assessment bonds - Interest expense is recorded as an expenditure when paid; interest is not accrued unless fully n matured and not paid; ` ! (c) Interest revenue on special assessments receivable - Interest revenue is recognized in the year of anticipated collection of ► I the current principal installment; (d) Bond and interest payments due January 1 - expenditures are recognized when amounts are remitted to the fiscal agent (usually in December) for payment of bonds and interest. Investments - Investments are carried at cost which approximates market. Investment revenue is recorded as earned and is allocated to the respective funds. Inventories - Inventories held by the Enterprise Funds are stated at cost. Property and equipment - Enterprise Funds - The property and equipment of the Enterprise Funds are stated at cost. Depreciation has been provided using the straight line method over the estimated useful lives of the assets. II General Long-term Debt - The general long-term liabilities , except for Enterprise and Special Assessment Funds , are not carried as a liability of a fund but rather are set up in a separate self-balancing group of accounts known n as the "General Long-Term Debt Group of Accounts." 1t General Fixed Assets - General Fixed Assets purchased are recorded as expense in funds other than Enterprise Funds at time of purchase. Such assets are capitalized at cost in the general fixed asset group of accounts. No deprecia- tion has been provided on general fixed assets. Note 2 - Pending Litigation With the exception of the below mentioned item, 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. The City of Fridley and the City of Columbia Heights were named as co-defendants p n -44- II CITY OF FRIDLEY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31 , 1976 in the case of John Glover Houses , Inc. The plaintiff had asked for two I I million dollars in damages. The plaintiff alledged that these damages resulted from work performed by the defendants at Sullivan Lake. The case n was tried in November of 1975. The court determined the plaintiff was 1I entitled to damages against the defendants in the amount of $281 ,500. The City of Columbia Heights has paid the judgement. The court has ruled and made findings that this ends all claims of the plaintiff and other persons II who participated in the development of this land from any further claims _ against the two cities. The City of Fridley and the City of Columbia Heights had entered into a hold-harmless agreement because the storm sewer project (� on Sullivan Lake was wholly within the bounds of the City of Columbia Heights. � I The City of Columbia Heights would like to have the City of Fridley participate in the settlement for a dollar amount not to exceed $25,000. The matter has never been resolved between the City of Columbia Heights and the City of Fridley. Note 3 - Deferred Credit - Metropolitan Waste Control Commission - Water and Sewer Revenue Bond Fund tl The deferred credit of the Water and Sewer Revenue Bond Fund represents : t ' 1 . The amount of $377,141 which will be repaid to the City in fl equal annual installments , with interest, through the year 1999. This repayment is for the City's equity in sewer interceptors which were acquired by the Commission. Repayment will be made by credits against future sewer billings from the Commission. 2. The amount of $51 ,260 which will be repaid, with interest, 11 through 1988. This repayment is for advances made to the Commission during 1971 and 1972. 1 1 Note 4 - Pension Plans - All Funds The City is currently making all pension contributions required by law. In I I 1976, the amount contributed by the City as the employer's share of pension ' I plans was as fol 1 ows : 1 . The Fridley Firemen's Relief Association Plan covers thirty- I I six Volunteer Firemen. The employer's contribution was $33,773 in 1976. 2. The Fridley Police Pension Association Plan covers twenty- ( -I seven sworn Police Officers. The employer's contributions were $110,176 in 1976. I I 3. The Public Employees Reitrement Association - Police and Fire Plan covers six employees. The employer's contribution to the plan was $13,640 in 1976. n -45- 1 n CITY OF FRIDLEY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31 , 1976 11 4. The Public Employees Retirement Association - Basic P1 an covers thirty-two permanent employees and two temporary employees. The employer's contribution in 1976 was $50,554. n 5. The Public Employees Retirement Association - Coordinated ( � Plan covers seventy permanent employees and eight temporary employees. The employer's contribution in 1976 was .$46,943. 6. The Social Security - Retirement System covers the same employees as the Coordinated Plan. The total employer 11 contribution in 1976 was $49,019. ' t For additional background information on the pension plans covering City n employees , see the comments made by the Finance Director in his letter to ( ! the City Manager. Note 5 - Leases The City leases space for Liquor Store No. 4, 6586 University Avenue ri ) Northeast. The lease, expiring July 31 , 1979, requires annual rentals as follows : 8/1/76 to 7/31/77 $8,232 8/1/77 to 7/31/78 8,232 8/1/78 to 7/31/79 8,532 There is no provision in the lease for the City to pay a pro rata share of common center expense or for increases in property taxes or other expense. Note 6 - Bonded Debt The City had four types of bonded debt outstanding at December 31 , 1976. There are (1 ) general obligation bonds for the Civic Center, (2) general obligation improvement bonds , (3) general obligation unility revenue bonds , and (4) water and sewer revenue bonds. 1 The general obligation bonds are payable solely from general property taxes. The general obligation improvement bonds and general obligation utility revenue bonds are payable primarily from other sources such as , special assessments and utility revenue, with any deficiency to be provided for by general property taxes. The water and sewer revenue bonds are payable solely from the revenue of the City's utilities fund. See the supplemental information for schedules of bond and interest maturities. 11 -46- n n n n STATISTICAL SECTION n n n n n n n n n n n n n (( ,y7 S�JBJEC'T: COMMENTS li.� THE ANNUAL FINANCIAL REPORT OF THE 71 i ;VIVO CITY OF COON RAPIDS, MINNESOTA, FOR THE FISCAL /I. 1 YEAR ENDED DECEMBER 31, 1976 s, 5 ,; ! Olaf .1' The standards used by the Special Review Committee are contained in NCGA's GOVERNMENTAL ACCOUNTING, AUDITING AND FINANCIAL REPORTING (GAAFR) , and the Industry Audit Guide of the American Institute of Certified Public Accountants AUDITS OF STATE AND LOCAL GOVERNMENTAL UNITS (ASLGU) . The recommended additions or changes to your report are as follows: 1. The reader of the Annual Financial Report should' be able to trace signifi- cantly related items from the combined overview statements to the appro- priate individual fund and account group statements. To facilitate this type of tracing, the presentation of combined statements by fund type is recommended (GAAFR, pp. 33-34, 40-41, 48, 83-84 and 91-92) where the govern- mental unit has two or more funds of a given generic type. Total columns should be included on the combined statements by fund type and amounts reported Lhetein s1u u1.1 agree? :.•ith 1z tsd .amo; ?ts .repportee in the combined overview statements. The presentation of combined statements by fund type would enhance report readability in the case of the enterprise funds in your report. 2. The reader of the Annual Financial Report should be provided with an over- view understanding of the nature and magnitude of the specific revenues and expenditures related to the regular recurring governmental activities engaged in by the governmental unit. Such revenues and expenditures are accounted for in the general and special revenue funds. A Combined Statement of General Governmental Revenues is therefore recom- mended. Such a statement should classify revenues by source and by fund and should include all revenues reported in the general or special revenue funds (GAAFR, p. 111) . A Combined Statement of General Governmental Expenditures is also recom- mended. Such a statement should classify expenditures by function and by fund and should include all expenditures reported in the general and special revenue funds (GAAFR, p. 112) . 3. A single combined analysis of changes in fund equity with separate columns for each of the eight basic generic fund types in use by the governmental unit is recommended (ASLGU, p. 106) . \/ 4. The first page of both the Introductory Section and the entire Annual Financial ' Report should be the title page. This page should contain the title "Annual Financial Report of the (name and location of thee governmental unit) for the Fiscal Year (inclusive dates) ," the exact name of the department issuing the report, and the name and title of the official heading that department (the chief finance officer) (GAAFR, p. 107) . 5. The financial statements, supporting schedules and statistical tables should be numbered or letter and indexed as such in the table of contents to facili- tate easy cross-referencing. 6. The Annual Financial Report should be bound in a mant.er which will permit it to lie flat when opened in order to facilitate easy cross-referencing by report users. Table 1 CITY OF FRIDLEY, MINNESOTA GENERAL FUND EXPENDITURE ANALYSIS BY FUNCTION General Public Public Parks and Government Safety Works Recreation Naturalist Total 1967 $206,450 $ 323,901 $230,854 $138,047 - $ 899,252 1968 242,548 378,493 316,244 170,974 - 1 ,108,259 1969 255,405 496,542 368,494 200,269 - 1 ,320,710 1970 280,524 565,629 352,661 327,552 - 1 ,526,366 1971 309,232 621 ,908 418,167 341 ,533 - 1 ,690,840 1972 350,072 652,201 453,682 351 ,739 - 1 ,807,694 1973 372,942 848,448 495,006 407,943 - 2,124,339 -.---4, 1974 418,461 893,201 675,381 459,687 $ 33,473 2,480,203 1975 513,785 1 ,016,774 755,904 505,734 77,248 2,869,445 1976 556,353 1 ,146,181 879,626 595,619 103,685 3,281 ,464 I ;''\ -47- Table 2 CITY OF FRIDLEY, MINNESOTA GENERAL FUND REVENUES BY SOURCE / LAST TEN FISCAL YEARS Charges Inter- General Licenses, for govern- Inter- ., Property Permits, Current mental Fund Other Total Tax and Fines Services Revenues Transfers Revenues Revenues 1967 $ 564,880 $100,596 $13,437 $ 99,809 $140,000 $ 16,749 $ 935,471 1968 623,882 121 ,486 34,450 254,062 174,000 23,194 1 ,231 ,074 1969 720,572 109,276 24,957 263,780 212,123 39,778 1 ,370,486 1970 894,153 96,994 45,172 331 ,699 157,890 73,340 1 ,599,248 1971 955,838 120,061 56,254 395,384 239,000 67,012 1 ,833,549 1972 973,103 192,456 47,761 541 ,938 156,500 90,056 2,001 ,814 1973 1 ,087,173 157,703 57,100 502,955 263,245 93,012 2,161 ,188 1974 1 ,344,632 179,142 58,243 601 ,266 323,690 112,568 2,619,541 1975 1 ,619,966 174,630 59,936 648,872 335,693 115,753 2,954,850 1976 1 ,762 ,205 210,904 63,200 811 ,406 385,388 179,736 3,412,839 Increases in general property taxes is partially attributable to change in accounting procedures, which now include pension contributions and other employee benefits in the operating programs of the General Fund. -48- Table 3 CITY OF FRIDLEY, MINNESOTA — TAX LEVIES AND TAX COLLECTIONS YEARS 1967 THROUGH 1976 Collections Percentage Collection of current of levy of prior Ratio year's taxes collected year's taxes of total -. Year Total during fiscal during fiscal during fiscal Total collections collected tax levy period period period collections to tax levy 1967 $ 753,242 $ 721 ,568 95. 79 $16,160 $ 737,728 .9794: 1 1968 757,325 743,851 93.22 29 ,672 773,523 1 .0213:1 — 1969 904,756 877,150 96.95 16,349 893,499 .9875:1 1970 1 ,068,629 1 ,038,922 97.22 12,177 1 ,051 ,099 .9835:1 1971 1 ,215,586 1 ,136,296 93. 47 27,563 1 ,163,859 .9574 :1 1972 1 ,139,871 1 ,119,975 98.25 75,812 1 ,195,787 1 .0490 :1 1973 1 ,260 ,386 1 ,245,095 98.78 30,551 1 ,275,646 1 .0112:1 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. 78 32,401 1 ,845,140 .9952 :1 — -49- CITY OF FRIDLEY, MINNESOTA .ASSESSED VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY (Shown by Year of Collectibility) / \ Years 1968 Through 1977 Fiscal Period 1968 1969 1970 1971 Population 27,670 28,235 29,233**** 29,636 -. Real Property Estimated Market Value $144,183,369 $161 ,803,359 $179,336,929 $215,276,076 Assessor's Lmt. Mar. Val . $ 44,985,211 $ 50,968,058 $ 55,773,785 $ 67,811 ,964 Assessed Value Homestead $ 4,727,610 $ 4,901 ,847 $ 5,126,387 $ 5,271 ,642 Excess and Non-Homestead 10,372,089 12,502,701 14,063,578 18,649,587 Area-Wide Allocation --- --- --- --- Taxable Value $ 15,099,699 $ 17,404,548 $ 19,189,965 $ 23,921 ,229 Personal Property Estimated Market Value Taxable Property $ 18,679,981 $ 19,435,721 $ 28,671 ,122 $ 32,262,943 Exempt Property 8,077,000 8,127,429 10,211 ,890 10,593,848 Total Market Value $ 26,756,981 S 27,563,150 $ 38,883,012 S 42,856,791 Assessor's Value Taxable Property $ 5,828,154 $ 6,122,252 $ 8,916,719 $ 10,162,827 Exempt Property 2,520,024 2,560,140 3,175,898 3,337,062 Total Assessor's Value $ 8,348,178 $ 8,682,392 $ 12,092,617 $ 13,499,889 Taxable Value: /"`' Taxable Property $ 2,210,004 $ 2,311 ,980 $ 3,245,428 $ 3,687,092 Exempt Property 840,008 966,800 1 ,155,935 1 ,210,692 Taxable Value $ 3,050,012 $ 3,278,780 $ 4,401 ,363 $ 4,897,784 .., Total Real and Personal Property Estimated Market Value $170,940,350 $189,366,509 $218,219,941 $258,132,867 Limited Market Value $ 53,333,389 $ 59,650,450 S 67,866,402 S 81 ,311 ,853 Total Taxable Value $ 18,149,711 $ 20,683,328 $ 23,591 ,328 $ 28,819,013 Ratio of Market Value To Limited Market Value .312: 1** .315:1** .311 :1** .315: 1** To Taxable Value .106:1 .109: 1 .108:1 .112:1 Per Capita Valuations Estimated Market Value $ 6,178 $ 6,707 $ 7,465 $ 8,710 Taxable Value $ 656 $ 733 $ 807 $ 972 (1 ) Beginning with the year 1968, business had the option of deleting either their inventory or fixtures. The City was reimbursed by the State for this lost value. Beginning in 1972, the value of inventories and fixtures was dropped. Cities were reimbursed by the State via other State Aids. (2) 1972 and subquent valuations reflect changes as provided for in Laws 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. -50- .. , ,,,,,-).... )4,..7--• 11 „. Table 4 liLr Ilk O� � fl Fiscal Period 1972 1973 1974 1975 1976 1977 30,240 (1) 31 ,143 (2) 32,542 32,486 (3) 31 ,570 31 ,570*** n1269,941 ,515 $242,991,629 $270,273,456 $288,949,935 $327,232,236 $363,541 ,172 $ 5,295,419 $ 16,233,935 $ 16,582,864 $ 17,104,208 $ 17,644,329 $ 19,607,606 II 19,425,726 73,166,443 84,043,948 90,832,944 105,665,396 117,424,505 (3,140,753) (4,541 ,034) (4,812,211) rl $ 24,721 ,145 $ 89,400,378 $100,626,812 $104,796,399 $118,768,691 $132,219,900 1.1 $ 36,379,141 $ 15,796,166 $ 17,323,420 $ 18,183,599 $ 18,073,064 $ 18,026,770 $ 36,379,141 $ 15,796,166 $ 17,323,420 $ 18,183, 599 $ 18,073,064 $ 18,026,770 II $ 11 ,313,913 $ 14,390,307 $ 15,902,900 $ 16,147,000 $ 16,103,100 $16,296,200 $ 11 ,313,913 $ 14,3.90,307 $ 15,902,900 $ 16,147,000 $ 16,103,100 $ 16,296,200 I , $ 4,080,720 $ 6,187,860 $ 6,838,247 $ 6,943,210 $ 6,924,333 $ 7,007,366 --- --- --- --- --- ___ (1 $ 4,080,720 $ 6,187,860 $ 6,838,247 $ 6,943,210 $ 6,924,333 $ 7,007,366 II $261 ,271 ,472 $282,526,823 $311 ,738,949 $343,577,630 $385,337,077 $420,312,296 11 $ 81 ,255,428 $257,381 ,936 $286,176,356 $305,096,935 $343,335,336 $379,837,372 11 $ 28,801 ,865 $ 95,588,238 $107,465,059 $111 ,739,609 $125,693,024 $139,227,266 fl .311 :1** .911 :1* .918:1* .888:1* .891 :1* .904:1** .110:1 .338:1 .345:1 .325:1 .326:1 .346:1 1 8,640 9,072 9,580 10,576 $ 12,206 $ 13,314 952 3,069 3,302 $ 3,440 $ 3,981 $ 4,410 Ii (3) Property values include net amount allocated pursuant to Laws 1971 , Extra Session, Chapter 23, from Area-Wide "Pool" . it 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 assessed value but a taxable value based on the City of Fridley's assessed value plus the net addition or deletion from the Metro Tax Pool . *Source - State of Minnesota Department of Revenue f **Source - Anoka County Assessor's Office ***No .census figure for 1977 available until April , therefore, 1976 figure is used ****United States Census (1 -51- ri CITY OF FRIDLEY , MINNESOTA eil HISTORY OF TAX LEVIES AND MILL RATES (Shown by Year of Tax Collectibility) II 1967 1968 1969 1970 n Tax Levies II General Fund $576,210 $611 ,635 $727,902 $ 909,650 P.E.R.A. Fund 15,128 32,690 60,288 90,312 rl Fire Relief Assoc. Fund 17,125 18,150 20,683 24,057 Police Pension Assoc. Fund 17,125 18,150 20,683 44,610 General Debt Service Funds 74,592 76,700 75,200 ---- il Improvement Bonds 53,062 ---- ---- ---- Capital Improvement Fund ---- ---- ---- ---- Total $753,242 $757,325 $904,756 $1 ,068,629 II Mill Rate fl General Fund 33.65 33.70 35.16 38.56 P.E.R.A. Fund .88 1.81 2.91 3.83 Fire Relief Assoc. Fund 1.00 1 .00 .95 1 .02 Police Pension Assoc. Fund 1 .00 1.00 .95 1.89 General Debt Service Funds 4.36 4.22 3.63 -- Improvement Bonds 3.09 -- -- -- Capital Improvement Fund -- -- -- -- Total 43.98 41.73 43.60 45.30 fl (2) 1972/73 and subsequent mill rates reflect changes as provided in Laws of 1971 , Extra Session , Chapter 31 , as amended. n Beginning with taxes levied in 1972, collectible in 1973, Minnesota assessed ( I 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. n II II n -52- n Table 5 TIN-, ., 1971 1972 1973 1974 1975 1976 ,., $1 ,001 ,209 $ 923,625 $1 ,075 ,464 $1 ,178,854 $1 ,624,144 $1 ,769 ,965 47,402 59 ,566 53,954 95,895 ---- ---- 27,523 17,602 13,776 55,862 57,547 49,992 75,723 ---- ---- 83,590 81 ,531 67,200 39,200 38,400 37,500 ---- ---- ---- 46,596 $1 ,215,586 $1 ,139,871 $1 ,260,386 $1 ,389,672 $1 ,662,544 $1 ,854,061 34.74 32.07 10.84 10.97 14.53 14.09 1 .64 2.07 .54 .89 --- --- .96 .61 .14 --- --- --- 1 .94 2.00 .51 .71 --- --- 2.90 2.83 .68 .37 .35 .30 7 42.18 39.58 12.71 12.94 14.88 14.76 1 (3) Property values include net amount allocated pursuant to Laws 1971 , Extra Session , Chapter 23, from Area-Wide "Pool . " Beginning with taxes levied in 1974, collectible in 1975, the value on 7 which the City of Fridley's mill rate is calculated, is not the City assessed value but a taxable value based on the City of Fridley's assessed value plus the net addition or deletion from the Metro Tax Pool . 7 ..., 7 -53- I Ti Table 6 CITY OF FRIDLEY, MINNESOTA STATEMENT OF VALUATIONS AND LEVIES BY CLASSES OF PROPERTY 71 (1975 Valuation for Taxes Payable in 1976) Ti Assessed Valuation Assessed Ratio of Tax Levy Before Valuation Valuation Adjusted Based on Contribution Contribution Contribution Adjusted Assessed Adjusted Class of to Metro Tax to Metro Tax From Metro Assessed Value to Assessed Property Pool Pool Tax Pool Value Total Value 7 Commercial $ 15,408,706 $2,255,993 $ $ 13,152,713 10.464 $ 194,008.92 Industrial 28,240,981 4,134,769 24,106,212 19.179 355,578.36 7 F.M.C. #85 3,831 ,429 560,961 3,270,468 2.602 48,240.99 Ti Gas - Electric 3,083,272 451 ,423 2,631 ,849 2.094 38,821 .05 Billboards, etc. 9,632 1 ,410 8,222 .007 121 .28 7 Real Estate-P.U. 356,393 52,180 304,213 .242 4,487.29 Vacant Land 1 ,460,366 1 ,460,366 1 .162 21 ,541 .10 (7 Apartments 12,331 ,576 12,331 ,576 9.811 181 ,896.75 Residential 65,511 ,703 65,511 ,703 52.119 966,329.50 Received from Metro Pool $2,915,702 $ 2,915,702 2.320 $ 43,035.76 TOTALS $130,234,058 $7,456,736 $2,915,702 $125,693,024 100.00 $1 ,854,061 .00 7 The assessed value for the first six classes of property shown above has been reduced for local taxable value to 85.36% of the actual assessed value. This taxable value is then multiplied by the applicable local mill rates. The balance of the assessed value is 7 multiplied by the Metro mill rate of (111 .65) . This money then goes into the Metro Pool . The City of Fridley received $43,035.76 from this pool, in 1976. 71 The tax shown for Residential is the total amount received by the City. Owners of Residential properties do not pay this full amount. Up to $325 per homestead in credit is paid by the State to the County, and the County in turn distributes this to various 71 local governments as part of the levy request. An additional refund may be received directly by the taxpayer depending on income and age. 71 -54- n 71 IfTable 7 ' 1 CITY OF FRIDLEY, MINNESOTA I STATEMENT OF VALUATIONS AND LEVIES BY CLASSES OF PROPERTY .1 (1976 Valuation for Taxes Payable in 1977) 7 Assessed Valuation Assessed Ratio of Tax Levy Before Valuation Valuation Adjusted Based on Contribution Contribution Contribution Adjusted Assessed Adjusted ^j Class of to Metro Tax to Metro Tax From Metro Assessed Value to Assessed 1 Property Pool Pool Tax Pool Value Total Value -4 Commercial $ 16,977,285 $2,270,186 $ $ 14,707,099 10.563 $ 217,301 .69 i Industrial 31 ,495,866 4,211 ,596 27,284,270 19.597 403,133.07 F.M.C. #85 3,831 ,386 512,329 3,319,057 2.384 49,040.04 Gas - Electric 3,166,907 423,476 2,743,431 1 .970 40,535.00 Billboards, etc. 9,073 1 ,213 7,860 .006 116. 13 Real Estate-P.U. 345,176 46,157 299,019 .215 4,418.09 Vacant Land 1 ,566,447 1 ,566,447 1 .125 23,144.71 .. Apartments 12,716,086 12,716,086 9.133 187,883.89 1 Residential 73,931 ,251 73,931 ,251 53.102 1 ,092,355.85 '1 Received from Metro Pool $2,652,746 $ 2,652,746 1.905 $ 39,154.53 TOTALS $144,039,477 $7,464,957 $ 2,652,746 $139,227,266 100.00 $2,057,083.00 The assessed value for the first six classes of property shown above has been reduced for I local taxable value to 86.6090% 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 (111 .68) . This money then goes into the Metro Pool . The City of Fridley received $39,154.53 from this pool . The tax shown for Residential is the total amount received by the City. Owners of Residential properties do not pay this full amount. Up to $325 per homestead in credit ^7 is paid by the State 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 directly from the State depending on income and age. i f I -55- Table 8 ;"l CITY OF FRIDLEY, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS YEARS 1967 THROUGH 1976 7 Ratio of Ratio of 7 Current Total Total Collections Collections Outstanding Current Current to Amount Delinquent to Current Current and 7 Fiscal Assessments Assessments Due Assessments Total Levy Delinquent Year Due Collected (Percent) Collected Collected (Percent) Assessments 1967 $664,554 $551 ,124 85.50 $ 65,941 $617,065 95.74 $763,148 7 1968 705,501 544,615 77.20 125,016 569,631 94.92 812,821 fl 1969 683,141 563,413 82.47 158,713 722,126 105.71 744,043 1970 681 ,841 572 ,939 84.03 62,085 635,024 93.13 818,438 n 1971 638,887 606,297 88.01 133,150 739,,447 107.34 751 ,726 I 1972 746,971 634,697 84.97 119,204 753,901 100.93 727,909 n 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 7 1975 953,453 696,193 73.02 273,771 969,964 101 .73 736,530 7 1976 942 ,965 767,498 81.39 223,843 991 ,341 105. 13 706 ,413 7 1 7I Fl 7 7 -56- 7 CITY OF FRIDLEY, MINNESOTA Table 9 f DEBT SERVICE REQUIREMENTS - ALL FUNDS n DECEMBER 31 , 1976 r• Year Principal Interest Total 1977 $ 395,000 $ 317,028.79 $ 712,028. 79 1978 2,200,000 375,815.00 2,575,815.00 1979 1 ,225,000 246,935.00 1 ,471 ,935.00 1980 780,000 186,720.01 966,720.01 1981 685,000 154,005.00 839,005.00 n 1982 680,000 123,107.50 803,107.50 1983 475,000 96,790.00 571 ,790.00 1984 390,000 76,912.50 466,912.50 1985 330,000 60,300.00 390,300.00 7 1986 280,000 46,318.75 326,318.75 1987 225 ,000 34,437.50 259,437.50 1988 185,000 24,150.00 209,150.00 n 1989 85,000 17,025.00 102,025.00 1990 75,000 12,637.50 87,637.50 1991 50,000 9,262.50 59,262.50 7 1992 50,000 6,625.00 56,625.00 1993 50,000 3,975.00 53,975.00 1994 50 ,000 1 ,325.00 51 ,325.00 7 $8,210 ,000 $1 ,793,370.05 $10,003,370.05 SUMMARY OF OUTSTANDING BONDED INDEBTEDNESS •-, Bonds Outstanding January 1 , 1976 1 Special Assessment - Permanent $4,557,730 General Debt Service 335,000 Public Utilities - Sinking 932 ,270 7 Special Assessment - Temporary 3,560,000 $9,385,000 n Bonds Issued During 1976 Special Assessment - Permanent $1 ,550,000 Special Assessment - Temporary 380,000 $1 ,930,000 7 Bonds Retired During 1976 Special Assessment - Permanent $ 693,393 7 General Debt Service 25,000 Public Utilities - Sinking 96,607 Special Assessment Temporary 2,290,000 $3,105,000 i Balance and Purpose of Bonds Outstanding on December 31 , 1976 Special Assessment - Permanent $5,414,337 7 General Debt Service 310,000 i'M Public Utilities 835,663 Special Assessment - Temporary 1 ,650,000 7 $8,210,000 -57- Table 10 fl CITY OF FRIDLEY, MINNESOTA A DEBT SERVICE REQUIREMENTS - GENERAL OBLIGATION BONDS 71 CIVIC CENTER DECEMBER 31 , 1976 7 Year Principal "Interest Total 1977 $ 25,000.00 $ 10,247.50 $ 35,247.50 7 1978 25,000.00 9,422.50 34,422.50 1979 30,000.00 8,500.00 38,500.00 1980 30,000.00 7,480.00 37,480.00 7 1981 30,000.00 6,460.00 36,460.00 1982 30,000.00 5,425.00 35,425.00 1983 35,000.00 4,287.50 39,287.50 7 1984 35,000.00 3,062.50 38,062.50 1985 35,000.00 1 ,827.50 36,837.50 1986 35,000.00 612.50 35,612.50 $ 310,000.00 $ 57,335.00 $ 367,335.00 n (7 n 7 7 El rl -53- n Table 11 CITY OF FRIDLEY, MINNESOTA DEBT SERVICE REQUIREMENTS - PERMANENT BONDS SPECIAL ASSESSMENT FUNDS DECEMBER 31 , 1976 ., I Year Principal Interest Total 1977 $ 320,000 $ 165,065.25 $ 485,065.25 n 1978 803,276 220,406.61 1 ,023,682.61 1979 713,276 187,978.69 901 ,254.69 1980 643,035 158,283.22 801 ,318.22 ., 1981 547,250 131 ,479.77 678,729.77 1982 552,500 106,137.57 658,637. 57 1983 390,000 83,927.50 473,927.50 1984 305,000 67,025.00 372,025.00 ., 1985 245,000 53,387.50 298,387.50 1986 195,000 42 ,331.25 237,381 .25 1987 175,000 32,862.50 207,862.50 • ■ 1988 165,000 23,800.00 188,800.00 ' ! 1989 85,000 17,025.00 102,025.00 1990 75,000 12,637.50 87,637.50 !''. 1991 50,000 9,262.50 59,262.50 1992 50,000 6,625.00 56,625.00 1993 50,000 3,975.00 53,975.00 1994 50,000 1 ,325.00 51 ,325.00 $5 ,414,337 $1 ,323,584.86 $6 ,737,921 .86 7 11 r, -59- 1 ! Table 12 rn CITY OF FRIDLEY, MINNESOTA DEBT SERVICE REQUIREMENTS - TEMPORARY BONDS SPECIAL ASSESSMENT FUNDS DECEMBER 31 , 1976 Year Principal Interest Total 1977 $ -0- $115,500.00 $ 115,500.00 1978 1 ,270,000 115,500.00 1 ,385,500.00 1979 380,000 24,675.00 404,675.00 $1 ,650,000 $255,675.00 $1 ,905,675.00 7] 1 71 Ti Ti 71 T ' I Ti -60- Ti Table 13 CITY OF FRIDLEY, MINNESOTA Th DEBT SERVICE REQUIREMENTS PUBLIC UTILITY REVENUE & WATER IMPROVEMENT BONDS DECEMBER 31 , 1976 Year Principal Interest Total 1977 $ 50,000.00 $ 26,216.04 $ 76,216.04 1978 101 ,724.00 30,485.89 132,209.89 1979 101 ,724.00 25,781 .31 127,505.31 1980 106,965.00 20,956.79 127,921 .79 7 1981 107,750.00 16,065.23 123,815.23 1982 97,500.00 11 ,544.93 109,044.93 1983 50,000.00 8,575.00 58,575.00 ,, 1984 50,000.00 6,825.00 56,825.00 1985 50,000.00 5,075.00 55,075.00 1986 50,000.00 3,325.00 53,325.00 1987 50,000.00 1 ,575.00 51 ,575.00 1988 20,000.00 350.00 20,350.00 $ 835,663.00 $ 156,775.19 $ 992,438.19 ., 7 .. n ' 1 -61- Table 14 ' 1 CITY OF FRIDLEY, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN rI DECEMBER 31 , 1976 n T Assessed Value $ $144,039,477 T (A) Debt Limit 6.667 Percent of Assessed Value $9,603,112 Amount of Debt Applicable to Debt Limit: Total Bonded Debt $ 8,210,000 (B) Deductions : General Debt Service Fund Assets $ 46,710 Special Assessment Bonds 7,064,337 Water Revenue & Improvement Bonds 835,663 $ 7,946,710 r"""i Total Amount of Debt Applicable to Debt Limit $ 263,290 ' I Legal Debt Margin $9,339,822 fl *Includes $4,812,211 negative adjustment from "Fiscal Disparity" area wide tax base. Note : (A) M.S.A. Section 475.53 (see following page) Note : (B) M.S.A. Section 475. 51 (see following page) it J' I r El -62- . rl Table 14 Continued CITY OF FRIDLEY, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED) DECEMBER 31 , 1976 Note (A) : M.S.A. Section 475.53 et seq. Limit on Net Debt "Subdivision 1 . Generally. Except as otherwise provided in 1 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 n "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 form 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 water-works 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) Amount of all money and the face value of all securities held as a sinking fund for the extinguishment of obligations other than those deductible under this subdivision. (7) All other obligations which under the provisions of the law authorizing their issuance are not to be included in computing the net debt of the municipality." -63- 71 CITY OF FRIDLEY , MINNESOTA ell PROPERTY TAX RATES PER $1 ,000 OF ASSESSED VALUE AND TAX LEVIES ALL OVERLAPPING GOVERNMENTS rl YEARS 1967 THROUGH 1976 TAX RATES School School School School fl District District District District Year City No. 11 No. 13 No. 14 No. 16 County 1957 43.98 Mills 161 .18 Mills 176.89 Mills 204.79 Mills 188.08 Mills 60.63 Mills 1968 41.73 " 188.70 " 164.83 " 221 .89 " 199.67 64.86 " 1969 43.60 265.66 " 180.74 " 257.96 " 244.28 " 71 .77 " 1970 45.30 " 297.66 209.33 287.42 " 2.47.72 " 68.99 71 1971 42. 18 " 257.09 211 .08 " 273. 11 " 217.43 67.78 " 1972 39.58 173.68 " 162.66 " 160.27 " 172.87 " 73.59 " 1973 12.71 " 54.92 " 49.88 " 52.54 " 56.01 " 21 .77 " 1974 12.94 " 54.85 " 53.49 " 55.04 54.44 " 20.49 " 1975 14.88 " 60.19 " 54.12 " 60.33 " 66.05* " 22.22 1976 14.76 " 55.27 " 49.16 " 55.18 " 61 .60* " 22. 16 " il *Vocational/Technical District No. 916 included in District No. 16. This table reflects the new method of determining assessed valuations as required by 1971 L3gislation. This change results in an assessed valuation of approximately 35% of market value instead of approximately 11% under the previous formula. n ' 1 TAX LEVIES 1967 $ 753,146 $111 ,404 $ 900,436 $1 ,917,738 $ 372,168 $1 ,089,738 71 1968 722,334 129 ,546 826,323 2,123,757 407,085 1 ,122 ,707 1969 859 ,641 220,614 1 ,042 ,996 2,713,717 634,024 1 ,415,055 1970 1 ,016,323 250,844 1 ,240,770 3,110,580 1 ,199 ,686 1 ,547,818 1971 1 ,164,519 230 ,075 1 ,418,753 3,711 ,783 1 ,391 ,814 1 ,871 ,292 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 n n (-7 -64- 7 r"1 Table 15 TOTALS Special School School School School Districts District District District District State Total No. 11 No. 13 No. 14 No. 16 PR ' 1 17.24 Mills 2.88 Mills 285.91 Mills 301 .62 Mills 329.52 Mills 312.81 Mills 3. 16 298.45 " 274.58 331 .64 309.42 " P9 3.06 " 384.09 " 299.17 376.39 " 362.71 " 3.34 " 415.29 " 326.96 405.05 " 365.35 " 2.87 " 369.92 " 323.91 " 385.94 330.26 " 5.60 292.45 281.43 279.04 " 291 .64 " 2.38** " 91 .37 86.24 " 89.40 92.87 " 2.89** " 90.96 " 89.81 91 .36 90.76 " 4.77** " 101 .86 95.99 102.20 107.92 " 3.23** " 95.06 89.31 95.33 " 101 .75 " **No Water Shed District in School District No. 11 . Yearly Total Percentage Tax Levies Increase $295.230 $ 49 ,319 $ 5,489 ,179 54,699 5,386.451 -2% 60,333 6,946,380 29% 74,934 8,440,955 22% 79,236 9,867.472 17% 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% ..� -65- Table 16 7 CITY OF FRIDLEY , MINNESOTA n COMPUTATION OF DIRECT AND OVERLAPPING el BONDED DEBT AND COMPARATIVE DEBT RATIOS DECEMBER 31 , 1976 7 % of Debt Net Debt Gross Sinking Net Applicable Applicable 7 Governmental Uni t Debt Funds Debt to City to City Direct & Overlapping Debt 7 Direct Debt: City of Fridley $ 8,210,000 $ 4,300,690 $ 3,909,310 100% $ 3,909,310 Overlapping Debt : 7 School Districts No. 11 $ 42 ,081 ,780 $ 3,263,408 $ 38,818,372 1 .878 $ 729,009 No. 13 6,345,000 1 ,403,194 4,941 ,806 29.685 1 ,466,975 No. 14 6 ,633,541 794,668 5,838,873 100.00 5,838,873 No. 16 16,431 ,335 1 ,776,228 14,655,107 43.455 6,368,377 Metro Transit $ 16,950,000 $ 2,175,440 $ 14,774,560 1 .905 $ 281 ,455 7 Metro Council $ 35,540,000 $19 ,086,728 $ 16,453,272 1.775 $ 292 ,046 n II Anoka County $ 660,000 $ 294,298 $ 365,702 23.694 $ 86,649 Vocational/Technical fl District No. 916 $ 8,180,000 $ 459,861 $ 7 ,720,139 2.824 $ 218,017 7 Total Overlapping Debt $132,821 ,656 $29,253 ,825 $103,567,831 14.755% $15,281 ,401 n Total Direct and Overlapping Debt $141 ,031 ,656 $33,554,515 $107,477,141 14.854% $19,190,711 n Ratio and Percentage of Net Debt, Applicable to City to Assessed Value and Market Value Direct Overlapping 7 Total Debt Debt Ratio of Net Debt to Assessed Value 1 :7.25 1 :35.61 1 :9.11 n Percent of Net Debt to Assessed Value 13.78% 2.81% 10.98% II Ratio of Net Debt to Market Value 1 :21 .90 1 :107.52 1 :27.50 Percentage of Net Debt to Market Value 4.57% .93% 3.64% Per Capita Debt $607.88 $123.83 $484.05 7 The above debt excludes the City's share of debt applicable to the Metropolitan Council , Metropolitan Waste Control Commission and the North Suburban Hospital District which is ("7 paid from users ' fees. 7 -66- Table 17 CITY OF FRIDLEY, MINNESOTA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES .• FOR GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENT EXPENDITURES YEARS 1967 THROUGH 1976 Total Total Ratio of Debt Fiscal Debt General Service to Year Principal Interest Service Expenditures General Expenditures 1967 $25,000 $24,840 $ 49,840 $ 961 ,558 .0518 : 1 7 1968 45,000 23,510 68,510 1 ,2.17,856 .0563 : 1 1969 60,000 47,895 107,895 1 ,416,795 .0762 : 1 1970 60,000 45,975 105,975 1 ,687,787 .0628 : 1 7 197 90,000 48,495 138,495 1 ,846,757 .0750 : 1 1972 60,000 23,520 83,520 1 ,953,180 .0428 : 1 ...'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 ml -67- Table 18 CITY OF FRIDLEY, MINNESOTA ("17 RATIO OF NET BONDED DEBT TO PROPERTY VALUES AND NET BONDED DEBT PER CAPITA 11 YEARS 1967 THROUGH 1976 Net Ratio of Net Net Bonded Fiscal Assessed Gross Less Debt Bonded Bonded Debt to Debt Per Year Population Value Bonded Debt Service Funds Debt Assessed Value Capita 1967 26,431 $ 17,124,738 $12,805,901 $3,191 ,058 $9,614,843 .5615 : 1 $364 1968 27,670 18,149,711 10,231 ,000 3,371 ,882 6,859,118 .6704 : 1 248 1969 28,235 20,683,328 9,589,000 3,712,201 5,876,799 .2841 : 1 208 1970 29,233 23,591 ,328 9,672,000 3,913,038 5,758,962 .2441 : 1 197 1971 29,636 28,819,013 9,655,000 3,655,759 5,999,241 .2082 : 1 202 1972 30,240 28,801 ,865 9,756,000 3,870,814 5,885,186 .2043 : 1 194 fl 1973 31 ,143 95,588,238 9,852,000 3,801 ,883 6,050,117 .0633 : 1 194 r`7 1974 32,542 107,465,059 8,885,000 3,010,682 5,874,318 .0547 : 1 181 - 1975 32,486 111 ,739,609 9,385,000 3,623,017 5,761 ,983 .0516 : 1 177 -- 1976 31 ,570 125,693,024 8,210,000 4,300,690 3,909,310 .0311 : 1 124 71 n ! 1 r -68- n ' Table 19 CITY OF FRIDLEY, MINNESOTA INSURANCE COVERAGE DECEMBER 31 , 1976 All risk, direct physical loss coverage Buildings and contents (except liquor stock) - 90% Co-insurance $4,975,525 Boiler insurance 500,000 Contractor's equipment 322,385 Signs 30,000 71 Fire and extended coverage - Liquor contents 183,700 Fire and extended coverage - Liquor stock 150,000 7 Comprehensive liability, including automobiles Bodily injury Each person 100,000 , Each occurrence 300,000 I Property damage 100,000/300,000 Excess liability 1 ,000,000 ^' Open stock burglary 10,000 Comprehensive and collision, automobile Passenger vehicles Actual cash value r Other vehicles Stated value Business interruption, liquor stores 91 ,000 f1 Money and securities, inside and outside premises, all locations 15,000 Workmen's compensation Statutory Errors and ommission insurance 1 ,000,000 7 EMPLOYEES' SURETY BONDS DECEMBER 31 , 1976 Surety Name Position bond Nasim M. Qureshi City Manager $25,000 7 Marvin C. Brunsell City Clerk 1 ,000 7 Marvin C. Brunsell Treasurer 25,000 Mervin J. Herrmann Assessor 500 Leon Madsen Deputy Assessor 500 Walter J. Mulcahy Appraiser 500 All employees are covered by a blanket faithful performance bond of 100,000 7 -69- Table 20 CITY CAPITAL IMPROVEMENT FINANCING POLICY 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: II It is the policy of the City to assess 100% of the cost of street surfacing, ri curb and gutter improvements and storm sewer inprovements 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 except organizations are treated the same as taxable properties. The sewer and water 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 II improvement cost is being financed by the public utility operation. WELLS , RESERVOIRS, PUMPING STATIONS, ETC. : fi These improvements have been financed from the revenues of the municipal water utility system. ACQUISTION OF PARK LAND, CIVIC CENTER, ETC. : It is the policy of the City to finance small park capital improvements out of fl 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 , 1976 was $310,000. OTHER CAPITAL IMPROVEMENTS : ' I 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 level out the amount budgeted for such items , the City appropriated funds in the amount of $45,664 for the year 1976 for the purpose of starting a Capital Improvement Revolving Fund. The 1977 appropriation is $45 ,000 for this fund. 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: II It is the policy of the City to use Revenue Sharing Funds primarily for Capital Outlay items . The general Fund has been used as the vehicle for expenditure of Revenue Sharing monies. -70- _ _ CITY OF FRIDLEY, MINNESOTA Table 21 •. MISCELLANEOUS STATISTICAL INFORMATION Date of Incorporation (Village of Fridley) July 1 , 1949 Date of Adoption of City Charter September 10, 1957 efecti ve September 25, 1957 Form of Government Council/Manager .1 Fiscal Year Begins January 1 Area of i t 11 Square Miles 1 Miles of Streets and i dewal ks Streets 124.3 Paved 120.7 Other 3.6 Sidewalks 7.97 Miles of Sewer Storm 36.24 Sanitary 97. 23 7 Miles of Water Mains 100.91 I Fi re Protecti on Number of Stations 1 Volunteer Firemen 36 Full-Time it men 5 Police Protection Number of Stations 1 Number of Sworn Officers 28 BUILDING PERMITS Residential Multiple Commercial/ Year No. Value Dwellings Industrial All Other Total 7 1969 104 $ 2,427,250 $2,060 ,000 $6 ,782 ,500 $2,183,809 $13,453,559 1970 50 1 ,286,900 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 .—i 1972 418 11 ,270,165 9,501 ,531 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 3,811 ,271 11 ,191 ,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 -71- Table 21 7 Continued Park and Recreation Areas n Developed 245.0 Acres /i Undeveloped 202.8 Acres Total 447.8 Acres n City Parks Schools Total Number of: ri Hockey Rinks 14 1 15 General Skating Rinks 18 0 18 ;II Playgrounds 14 9 23 Swimming Beaches 2 0 2 Swimming Pools 0 1 1 Wading Pools 0 0 0 7 Pi cni c Grounds 1 0 1 Day Camp Sites 1 0 1 Baseball Diamonds 1 5 6 7 Softball Diamonds 18 16 34 Outdoor Basketball Courts 7 6 13 Tennis Courts 13 16 29 Horseshoe Courts 8 0 8 7 Archery Ranges 1 0 1 Permanent Playground Buildings 0 0 0 Permanent Picnic Shelters 10 0 10 7 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 n Million Gallons Per Day II Secondary Source City of Minneapolis (Mississippi River)--35 7 Million Gallons Per Day Number of Connections December 31 , 1976 6,664 Connections Daily Average Consumption (Gallons) 3.95 Million Gallons 7 System Capacity 15 Million Gallons Miles of Water Mains and Laterals 100.91 Miles Number of Fire Hydrants 936 I Municipal Sewer System ., Disposal--Through Metropolitan Waste Control Commission Number of Connections 6 ,832 Connections Miles of Sanitary Sewer Mains and Laterals 97.23 Miles '" Average Daily Flow (Includes Infiltration/Inflow) 3.34 A Million Gallons (1976 Estimate) Storm Sewers Miles of Storm Sewer 36.24 Miles ej:1 n -72- 7 , Table 21 Continued Number of Street Lights 934 Number of Traffic Signal Installations 24 Number of Other Special Signal Installations 1 Number of Civil Defense Warning Si rens 8 Permanent Employees--As of December 31 , 1976 Number 1967 95 1968 99 1969 109 1970 108 1971 110 1972 110 1973 115 1974 122 1975 129 1976 135 Elections Registered Voters--Last General Election (1976) 16 ,379 ►� Number of Votes Cast Last General Election (1976) 14,290 Percent (%) Voting 87% 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 7 -73- n n n a n n n (11 n 71. n/