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1978 Annual Financial Report (1 II G r r ANNUAL FINANCIAL REPORT of the CITY OF FRIDLEY, MINNESOTA for the year ended � DECEMBER 31, 1978 1 � DEPARTMENT OF FINANCE MARVIN C. BRUNSELL, DIRECTOR OF FINANCE MEMBER OF MUNICIPAL FINANCE OFFICERS' ASSOCIATION p-� OF THE UNITED STATES AND CANADA i� � 71 7 CITY OF FRIDLEY, MINNESOTA TABLE OF CONTENTS Exhibit Number Page SECTION I INTRODUCTORY SECTION Letter of Transmittal I-XI Auditor's Opinion XII Certificate of Conformance XIII-XIV Elected and Appointed Officials XV Organizational Chart XVI ^-, SECTION II COMBINED FINANCIAL SECTION Combined Balance Sheet - All Funds I 1 Combined Statement of Revenue, Expenditures, and Changes in Fund Balances - All Governmental 71 Fund Types II 3 Statement of Income and Changes in Retained Earnings - Proprietary Fund Type III 5 Statement of Changes in Financial Position - ,. Proprietary Fund Type IV 6 Statement of Cash and Security for Deposits V 7 Summary Statement of Cash Receipts and Disbursements - All Funds V 7 7 Statement of Investments VI 8 1 Bonds Payable - All Funds VII 10 fl Combined Statement of Delinquent Taxes Receivable by Funds VIII 14 eTh 1 n ri..., CITY OF FRIDLEY, MINNESOTA TABLE OF CONTENTS (CONTINUED) flExhibit Number Page ,. SECTION III FINANCIAL SECTION BY FUNDS General Fund Balance Sheet IX 15 rj Analysis of Changes in Fund Balance X 16 Statement of Revenue - Estimated and Actual XI 17 Statement of Expenditures - Compared with Authorizations XII 19 Special Revenue Funds Balance Sheets XIII 22 flAnalysis of Changes in Fund Balances XIV 24 1-1-4) Statement of Revenue and Expenditures XV 26 General Debt Service Fund Balance Sheet XVI 28 Statement of Revenue, Expenditures and Analysis 7 of Fund Balance XVII 29 Capital Project Funds 7 Balance Sheets XVIII 30 Analysis of Changes in Fund Balance XIX 31 1 Statement of Revenue and Expenditures XX 32 Special Assessment Funds 71 Balance Sheets XXI 33 fi Analysis of Changes in Fund Balances XXII 34 Statements of Revenue and Expenditures XXIII 35 Statements of Cash Receipts and Disbursements XXIV 36 tn- I 71 zi. ti 7 CITY OF FRIDLEY, MINNESOTA TABLE OF CONTENTS (CONTINUED) nExhibit Number Page i Enterprise Funds Balance Sheets XXV 37 Combined Statement of Income and Changes in Retained Earnings XXVI 38 r Combined Statement of Changes in Financial Position XXVII 39 Municipal Liquor Fund Balance Sheet XXVIII 40 j1Analysis of Changes in Retained Earnings XXIX 41 Statement of Income XXX 42 flStatement of Operating Expenses XXXI 44 Statement of Changes in Financial Position XXXII 45 Public Utility Fund ^' Balance Sheet XXXIII 46 Analysis of Changes in Retained Earnings XXXIV 47 rStatement of Income XXXV 48 .., Statement of Changes in Financial Position XXXVI 50 Christenson Building Fund Balance Sheet XXXVII 51 Analysis of Changes in Retained Earnings XXXVII 51 Statement of Income XXXVIII 52 Statement of Changes in Financial Position XXXVIII 52 General Fixed Assets Statement of General Fixed Assets XXXIX 53 Schedule of General Fixed Assets by Functions and Activities - XXXX 54 ' I Statement of Changes in General Fixed Assets XXXXI 56 i iii r, CITY OF FRIDLEY, MINNESOTA TABLE OF CONTENTS (CONTINUED) nExhibit Number Page ,, General Long-Term Debt Statement of General Long-Term Debt XXXXII 57 p. Notes to the Financial Statements r. Note 1 - Summary of Significant Accounting Policies 58 ( ' Note 2 - Pending Litigation 59 Note 3 - Deferred Credit - Metropolitan Waste Control Commission (Public Utility Fund) 60 Note 4 - Pension Plans (All Funds) 60 Note 5 - Leases 63 ! ! Note 6 - Bonded Debt 63 Note 7 - Revenue Bonds 63 Note 8 - Bond Covenants 64 Note 9 - Industrial Revenue Bonds 64 Note 10 - Vacation and Sick Leave 63 r.. SECTION IV STATISTICAL SECTION Table Number General Fund Expenditure Analysis by Function Table 1 65 ., General Fund Revenue by Source Table 2 66 Property Tax Levies and Collections Table 3 67 Assessed Value and Estimated Market Value of all Taxable Property Table 4 68 History of Tax Levies and Mill Rates Table 5 70 Statement of Valuations and Levies by Classes of Property -- for Taxes Payable in 1978 Table 6 72 -U, r, CITY OF FRIDLEY, MINNESOTA TABLE OF CONTENTS (CONTINUED) 71 Table Number Page r, Significant Minnesota Tax Policies Table 7 73 Special Assessment Levies and Collections Table 8 74 n Debt Service Requirements - All Funds Table 9 75 ! I Debt Service Requirements - General Obligation Bonds Table 10 76 7 Debt Service Requirements - Permanent Special Assessment Bonds Table 11 77 Debt Service Requirements - Temporary Special 71 Assessment Bonds Table 12 78 Debt Service Requirements - Public Utility Revenue n and Water Improvment Bonds Table 13 79 Computation of Legal Debt Margin Table 14 80 Property Tax Rates and Tax Levies - All Overlapping Governmental Units Table 15 82 Computation of Direct and Overlapping Bonded Debt and Comparative Debt Ratios Table 16 84 7� Ratio of Annual Debt Service Expenditures for ! I General Bonded Debt to Total General Government Expenditures Table 17 85 Ratio of Net Bonded Debt to Property Values and 1 Net Bonded Debt per Capita Table 18 86 — Schedule of Insurance in Force Table 19 87 Principal Officials Annual Salaries and Surety Bonds Table 19 87 City Capital Improvement Financing Policy Table 20 88 Miscellaneous Statistical Information Table 21 89 General Information Table 22 92 7 1 7 v F TDT CTION I ` A UOY . r r A y _ ____x "'-',;-":',4' s_ F 'a! ❑ ti as 1 r � 4�.a �nFH , .-yr i. 4,'? i .i &. 1ti:+ `y. l0Y't ,a 4t"_ fit f S JZ ,l - 4c.-!'!k`!4n 11 - - yr.�, _ ,,' r,� r 4 i i ' f te ;i k 5 t -' ..< ti s y '''.7.n . a s s•• l' �is i'7. r,} -`Y Lcu �' ��`�'�C�""K.-. ;+�� i? .,_,f{„ ✓t ' ::mss.. , , i # r -t!� 1 Y' IN � eT x *R ", w+ s k . * ,Y _ Iti' - y� w°I"A.-. it 5f ° ' '`.;:t:rr wp - -4. . tom t i ��.y' iC T'''',. .:,L _ . 4 r-. h.� '1 ,HG^ {r-tl *b y may¢ F 4f4t �" i _ .f kw�f.,. 1 6. Lnal �21 :Vi;{. Y :y �' k ......'"?..•••• Y c}� y Tss«r •..•t • a* t . Y• i $* � . v r t:T jF M t4 J. -.,4S' +11 Lf a A -_:,- _r-,_ii i i... i .4.- y.F, "",rte+ CITY OF FRIDLEY 6431 UNIVERSITY AVENUE N.E., FRIDLEY, MINNESOTA 55432 TELEPHONE ( 612)571-3450 May 31 , 1979 Mr. Nasim M. Qureshi , City Manager Mayor William J. Nee and Council Members Fridley, Minnesota 55432 Dear Mr. Qureshi , Mayor Nee and Council Members: The annual financial report for the City of Fridley for the fiscal year ended December 31 , 1978 is herewith submitted. ACCOUNTING SYSTEM AND REPORTS The organizational 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 of Minnesota Auditor's Office, and the City Charter. General and Special Revenue, and General Debt Service funds are presented on a modified accrual basis of accounting. All other funds are presented on an accrual basis of accounting. (See Notes to Financial Statements. ) A complete budgetary system of accounts is maintained for those funds for which 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 expended. It is the policy of the City to control budgets at the division level . Budget adjust- ments between City divisions are made upon approval of a resolution by the City Council . The City Charter provides that the City Council shall not have power to increase the total amount of the budget, whether by insertion of new items or otherwise, beyond the estimated revenue unless the actual revenue •- exceeds such revenue estimates, and in that event not beyond such actual revenue. There is a constant review process. Expenditures are not approved until it has been determined that 1 ) adequate funds have been appropriated, 2) the expenditure is necessary, and 3) funds are available. PP The City has not borrowed funds during the past year, either on a short-term eTh or long-term basis, to meet current operating expenses. I Page 2 May 31 , 1979 City Manager, Mayor and Council Members .7 r ) The City of Fridley has computerized substantially all of its financial - operation. This has been done through the use of computer facilities and programs available through The Local Government Information Systems Association (LOGIS). LOGIS was formed under the Minnesota Joint Powers Act to provide an organiza- rl tion through which a number of municipalities could jointly and cooperatively provide for the establishment, operation and maintenance of data processing fl facilities and management information 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 for payroll , utility ' J billing, financial control , equipment control , fixed asset, and liquor inventory. The following is a brief explanation of the purpose of each type of fund used in managing and accounting for City operations, 7 GENERAL FUND 7 Punpoae The General Fund was established to account for revenue and expenditures �''1 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 four operating funds of the City. The other three operating funds are the Municipal Liquor, Public Utility, and the Christenson Building funds. comment, On December 31 , 1978, the General Fund showed an unappropriated fund balance of $1 ,630,478 and an appropriated fund balance of $204,638. ; j The General Fund Balance Sheet as presented reflects the City's accrued liability for vacation benefits for all City employees. It also includes the estimated potential liability for sick leave benefits for all City employees, One-third of the total sick leave accumulation for all City employees was used as the basis for estimating the City's liability for sick leave. ' I The unappropriated fund balance of $1 ,630,478 is available to finance future ' I City budgets. In actual practice, the bulk of this amount represents working n capital for the General Fund operations. The City receives most of its tax revenue 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 funding General Fund operating expenditures by borrowing. The General Fund '1 balance increased by $477,337 in 1978. Of the $477,337, $277,889 was the result of actual expenditures being under budgeted expenditures, and $216,960 was the result of actual revenue being over the estimate. Revenue exceeded ^1 II I n j Page 3 May 31 , 1979 City Manager, Mayor and Council Members 1 estimates in several areas including license revenue, grants, charges for services, interest earnings and insurance rebates from the State of Minnesota used to finance fire and police pensions. Revenue in these areas was higher than expected, and can be expected to return to a more normal pattern in the ., future. Expenditures were under the budget in several areas, particularly in the park and recreation area. For additional detail , see Exhibits XI and XII. ., In the financial statements which follow, revenue is recorded by source while expenditures are recorded by division. Included in intergovernmental revenue in the statement of revenue are payments received from the State Property Tax Relief Fund for Homestead Credit. r. � 1 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. Revenue received for General Fund operations totaled $4,466,665 in 1978, an r, increase of $426,230 or 10.5% over the previous year. The following table represents an analysis of the major revenue sources for the General Fund for the years 1978, 1977 and 1976. 1978 1977 1976 Revenue Source Budget Actual Actual Actual General property taxes $1 ,752,516 $1 ,846,370 $1 ,703,364 $1 ,762,205 Licenses and permits 149,770 179,868 191 ,243 144,451 Intergovernmental revenue 1 ,545,842 1 ,576,630 1 ,346,412 811 ,406 Charges for current services 72,295 104,069 99,755 63,200 1 Fines and forfeitures 75,004 85,789 79,166 66,453 From use of money and property 86,500 133,386 88,042 83,939 ^ Interfund transfers 393,556 388,628 384,743 385,388 Other revenue 101 ,235 151 ,925 147,710 95,797 Prior year's fund balance 72,987 r% Total $4,249 705 $4,466,665 $4,040,435 $3,412,839 Expenditures for general governmental operations totaled $3,971 ,886 in 1978, an increase of $369,883 or 10.3% over 1977. Expenditure by Function General Government $ 617,059 $ 572,381 $ 484,663 $ 476,286 Public Safety 1 ,470,095 1 ,446,302 1 ,239,730 1 ,146,181 Civic Center 111 ,427 102,444 109,647 80,067 Public Works 1 ,072,270 1 ,028,594 928,742 879,626 Parks and Recreation 927,798 822,095 839,151 699,304 Reserve for Contingencies 51 ,056 r. Total $4,249,705 $3,971 ,816 $3,601 ,933 $3,281 ,464 III Page 4 May 31 , 1979 City Manager, Mayor and Council Members Levy Limitations (°-'1 r- Minnesota Levy Limitation Law was adopted in 1972 and in general has placed a limitation on the amount of property tax a City can levy. The amount of increase is limited to 6% per capita per year. Since inception, various ra amendments to the law have been enacted but the basic principle has remained the same. The following table summarizes the City's compliance with the law for the years 1979, 1978, 1977 and 1976. Shown by Year Collectible 1979 1978 1977 1976 it Authorized levy $2,288,081 $1 ,869,304 $1 ,756,263 $1 ,704,706 Plus allowable special levies 328,580 339,266 398,149 353,724 ' I Total allowable levy $2,616,661 $2,208,570 $2,154,412 $2,058,430 Actual levy 2,348,124 2,199,318 2,057,083 1 ,854,061 Excess not used $ 268,537 $ 9,252 $ 97,329 $ 204,369 it The City is operating within the authorized levy limitation. For the taxes collectible in the year 1978, the City was $9,252 under the levy limitation n and will be $268,537 under the limitation for 1979. The City Council took II action in 1978 to increase the allowable tax base by 10% for 1979. This is provided for in the State Statutes. n F.i s cat DA4 po L LeA The State Legislature enacted a "Fiscal Disparity Law" in 1971 which was not (7 implemented until taxes payable in 1975 due to a constitutional challenge. The law provides for the "pooling" of 40% of all new commercial and industrial property valuations in the seven-county metropolitan area. In turn, valuation � I 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 II Disparity Law' on the City of Fridley, the law had the effect of reducing the City's taxable valuation by $6,271 ,738 for the taxes collectible in 1978. II SPECIAL REVENUE FUNDS n PWLpa4 e Special Revenue funds are used to account for revenue derived from specific fl taxes or other earmarked revenue sources. They are usually required by Statute, Charter provisions or local ordinance to finance particular functions or activities of government. II Muvu,c Lpa e. State-Aid Fund Gasoline tax collections apportioned to the City by the State of Minnesota for street construction are accounted for in this fund. Gasoline tax apportionments used for maintenance purposes are accounted for in the General 1 IV El Page 5 May 31 , 1979 r City Manager, Mayor and Council Members r`1 Fund. Transfers are also made back to this fund from Special Assessment funds. pm 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. This excess is transferred (see page 4) back to the pm Municipal State-Aid Fund where the funds are earmarked for seal coating projects, or the City's share of sidewalk or street improvement projects. r Revenue Shaking Fund ^ The Revenue Sharing Fund was established to account for the revenue received from the Federal Government in accordance with the "State and Local Fiscal Assistance Act of 1972." Expenditure of these funds can be made only in accordance with the provisions of that act. The City's share of these r Revenue Sharing funds for the year 1978 was $218,387. Revenue Sharing funds are transferred from the Revenue Sharing Fund to the r., General Fund where the detailed amounts are budgeted. 1 ! r■ Anti-Recebd-.on Fund No anti-recession funds were received by the City in 1978. In 1978, $12,108 of anti-recession funds were transferred to the General Fund where this amount was appropriated and spent. STEP Fund The STEP Fund was set up to account for phase II of the Selective Traffic Enforcement Program. The program is being funded by a grant from the State pm of Minnesota and City funds. 7 Teen Cen-en Fund The Teen Center Fund was set up to account for the revenue and expenditures p„ associated with the operation of a teen center and teen dances. Community Development 8Jock G1cant n A $140,000 Community Development Block Grant was approved for the City of Fridley during 1977. Funds are received from HUD as money is spent and HUD r, is billed. Of the $140,000 grant, $93,500 is scheduled for home rehabili- tation grants, $20,400 for housing maintenance, $21 ,000 for administration and $5,100 for a resource center. ■ I V Page 6 May 31 , 1979 City Manager, Mayor and Council Members GENERAL DEBT SERVICE FUND _■ Put pod e The General Debt Service Fund accounts for money devoted to the payment of interest and principal on long-term general obligation debt (other than Special Assessment Debt Service). This fund is used for the accumulation of monies for payment of general obligation bonds and interest thereon. Property taxes provide the necessary revenue. The City has one general obligation issue outstanding which is ^, carried in this Fund. This is a $500,000 issue for the Civic Center dated May 1 , 1965. On December 31 , 1978, $260,000 was outstanding on this bond issue. CAPITAL PROJECT FUNDS Purpose Capital Project funds receive and disburse monies used for acquisition of capital facilities other than those financed by Special Assessments and 7 Enterprise funds. Capital Impkovemen-t Fund This fund was established to account for the revenue and expenditures of a revolving type Capital Improvement Fund. No expenditures have been made from n this Fund to date. r, Ista.nd4 ob Peace This fund was established to account for the Islands of Peace Project. A Fl $150,000 grant has been received from the State of Minnesota for the purpose of constructing a shelter building. North Panfz Fund This fund has been established to account for the special North Park Project. �1 The North Park area is currently being developed by a private non-profit II foundation and the City as a nature center. A $27,000 grant was received in 1976 from the State of Minnesota for use on this project. Locke Panfz Fund This fund has been set up to account for three separate trail grants. Grants 71 in the amount of $5,000, $38,000 and $40,240 for trail systems in Locke Park have been approved by the State. Grant funds in the amount of $15,200 for the $38,000 grant were received in 1978. VI 71 n Page 7 May 31 , 1979 City Manager, Mayor and Council Members ENTERPRISE FUNDS Punpod e Enterprise funds account for the financing of services to the general public ! in which all or most of the cost involved is paid in the form of charges by the users of such a service. In the City of Fridley, Enterprise funds are used to account for the operation of the Public Utility System, the municipal liquor stores and the operation of a small shopping center. Except for ownership, Enterprise funds bear a close resemblance to privately owned utility or service enterprises. MunLc..ipat Liquon Fund The Municipal Liquor Fund was established to account for the operation and financing of the City-owned municipal liquor stores. One is located at 6289 Highway 65; the other is located at 6586 University Avenue Northeast. The City owns the land, building and fixtures at the Highway 65 location. The City leases the building at the University Avenue location. The City has been operating under a five-year lease at the University Avenue location. *- A new lease was negotiated in 1978 which will expire on May 1 , 1987. ; Shown below is a summary of liquor store operations for the years 1978, 1977, 1976, 1975 and 1974. 1978 1977 1976 1975 1974 r., Sales $1 ,323,462 $1 ,160,937 $1 ,061 ,562 $1 ,100,224 $1 ,074,169 Gross profit 260,941 228,106 214,480 231 ,768 245,843 Net profit 119,607 98,681 98,963 90,939 107,339 Transfers to the General Fund $ 85,000 $ 85,000 $ 85,000 $ 75,000 $ 75,000 Retained earnings of the Municipal Liquor Fund were $741 ,933 on December 31 , 1978, compared to $707,306 on December 31 , 1977. PubLLc. Utility Fund This fund accounts for the operation and financing of the City-owned sewer and r" water systems. In 1970, bonds in the amount of $460,000 were issued. In 1975, ii these bonds were refunded and a new bond issue substituted. On December 31 , 1978, $162,215 of these bonds were outstanding and payable in future years. In 1969, the fund assumed a $770,000 liability for bonds payable along with future interest obligations of the Water No. 75 Improvement Bonds. A total principal amount of $470,000 for this bond issue was outstanding on December 31 , 1978. 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 eTh cancel the tax levies annually for this bond issue and to provide the necessary revenue from the Public Utility Fund. VII Page 8 May 31 , 1979 City Manager, Mayor and Council Members The receivable from the Metropolitan Waste Control Commission of $498,441 represents the City's share of the equity in the Minneapolis Sewer System which was acquired by the Board on January 1 , 1971 , the balance of the reserve capacity charges which were advanced to the Commission during 1971 and 1972, and final cost allocation from 1977. The reserve capacity charges ., of $47,339 at December 31 , 1978 will be repaid with interest directly to the City over the next ten years. The remainder will be paid to the City by means of issuing credit against future sewer billings from the Commission. These credits will be applied in annual installments with interest through ^' • 1999. The assets for the Water and Sewer distribution system, originally financed by special assessments, were transferred from General Fixed Assets to the Public Utility Fund in 1978. Those improvements to the utility system paid for or financed directly by the Public Utility Fund have always been carried in the Public Utility Fund and depreciated. f The City Council has a policy of not depreciating water and sewer lines paid for by special assessments. The reasoning for this is that Fridley is still fl a young community. The original water and sewer lines have not been fully paid for by the property owners. To require these same property owners to pay for the lines by special assessments and also via their utility bills 7 would require the same customers to pay for the system twice. If depreciation , � were charged on the water and sewer lines financed by special assessments, the income of the Public Utility Fund would have been $203,334 less. rffl. The Public Utility Fund has transferred monies to the Special Assessment Debt Service funds to pay principal and interest on some bond issues although there is no legal requirement to do so. As a result, the City considers r' such transfers as direct charges against retained earnings and not against income. Retained earnings on December 31 , 1978 was $13,554,769 compared to $13,326,747 1 on December 31 , 1977 after adjustments. On December 12, 1977 the City Council took action to increase sewer rates by ► l 10.3% for all classes of customers. With this action it is expected that the Public Utility Fund will be able to operate on a self-sustaining basis for three years before another rate adjustment is necessary. f1 Shown below is a summary of operations of the Public Utility Fund for the years 1978, 1977, 1976, 1975 and 1974. 1978 1977 1976 1975 1974 it Water account - , Operating income $615,741 $650,272 $707,872 $554,174 $548,467 Operating expenses 472,763 440,440 460,948 419,532 458,314 Operating income $142,978 $209,832 $246,924 $134,642 $ 90,153 fl Sewer account Operating income $788,718 $625,924 $579,091 $615,086 $596,560 Operating expenses 827,225 698,712 647,182 581 ,386 414,726 Operating income (loss) $(38,507) $(72,788) $(68,091 ) $ 33,700 $181 ,834 VIII El Page 9 May 31 , 1979 •, City Manager, Mayor and Council Members ,.f Ck L s ten on Building Fund I On September 1 , 1978 the City entered into a lease/option agreement with O.H. Peterson, Jr. for the property known as the Christenson building. The property consists of 2.66 acres of land, an older shopping center building, a house and a cement block commercial garage building. The lease runs until July 31 , 1979. The lease contains provisions for two one-year extensions. The lease agreement also provides that the City has the option to purchase the property for $275,000. The purpose of.the City entering into the lease agreement with Mr. Peterson is to hold the property together as one ., parcel pending possible redevelopment. The City is currently operating the property as a shopping center. The City pays $1 ,700 month rent plus all other operating expenses, and in turn collects rent from the tenants. SPECIAL ASSESSMENT FUNDS Punpo4 e 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 distinguishes them from improvements which benefit the entire community and which are paid for out of general revenue or through the issuance of general obligation bonds. I Comments The City employs the practice of issuing temporary three-year bonds to finance the improvements during the construction period of projects. The temporary �-, bonds usually are in force past the time the special assessment rolls are adopted by the City Council . Permanent bonds are normally issued after the assessment rolls have been approved by the City Council and after the initial prepayments of assessments have been made by property owners. This practice allows the City to keep the amount of permanent bonds issued by the City to a minimum. Construction in progress is shown in the General Fixed Asset Group of Accounts. Spec.%a..2 A44e%sments RevoFvLng The purpose of this fund is to provide temporary financing for small improve- ment projects. Spect.ae Aus4es4meni6 Canstxuctian The transactions accounted for in the Special Assessment Construction funds are the receipt of bond proceeds and the disbursement of the proceeds for construc- tion work performed. IX Page 10 May 31 , 1979 City Manager, Mayor and Council Members 7 Specia,+? A44e44mevitA Debt Sehvice r , The Special Assessments Debt Service funds are used to account for the collection of assessments against benefited property owners and the disburse- ment of assessment collections for the payment of bonds and interest thereon. GENERAL FIXED ASSETS GROUP OF ACCOUNTS 1 Punpo4 e General Fixed Assets are those fixed assets of a governmental jurisdiction '_ I which are not accounted for in an Enterprise Fund. To be classified as a fixed asset in this category, a specific piece of property must possess ri three attributes: 1 ) it must be tangible in nature, 2) it must have a life longer than the fiscal year, and 3) it must be of significant value. GENERAL LONG-TERM DEBT GROUP OF ACCOUNTS ' ' Punpo s e fl General obligation bonds and other forms of long-term debt supported by general revenue are obligations of a governmental unit as a whole and not its individual constituent funds. Moreover, the proceeds of such debt may be spent on facilities which are utilized in the operation of several funds. For these reasons, the amount of unmatured long-term indebtedness which is backed by a full faith and credit of the City are accounted for and reported in a separate self-balancing group of accounts entitled "General Long Group of Accounts." The group includes (in addition to conventional term debt) general obligation bonds, time warrants and notes which have a maturity of ri more than one year from date of issuance. comment, n As of December 31 , 1978, the long-term debt of the City consisted of $260,000 in definitive bonds issued for the purpose of financing the Civic Center rl and $95,817 in long-term contracts payable issued for the purpose of I financing the addition to the City's municipal garage. rl CITY INVESTMENT POLICY The City. follows a policy .of pooling the investments for_ all City funds and 71 prorating the interest earned back to each fund on the basis, of each fund's average cash balance. During the year 1978, the interest earnings totaled $681,067. This is an increase of $125,066 over the $556,001 earned in the i year 1977. X n n l i Page 11 May 31 , 1979 fl City Manager, Mayor and Council Members BOND RATING The City's current bond rating is Aa. This rating was awarded for the Improvement Bond Sale held May 16, 1977. The amount of the bond issue was to refund temporary three-year improvment bonds or to finance construction projects already underway. The 1977 issue will be repaid entirely from special assessments. The City previously held an A-1 bond rating which was awarded for the first time on March 1 , 1975. PENSIONS I• ! Commen 6 ji Employees in the City of Fridley are covered by five pension plans: 1 ) Fridley Fire Relief Association for Volunteer Firemen; 2) Fridley Police Pension Association, for Police Officers hired prior to December 15, 1975; ^ 3) Public Employees Retirement Police and Fire Plan, covering the City's full-time Firemen and newly-hired Police Officers; 4) the basic Public Employees Retirement Plan, which covers certain other City civilian employees; r, and 5) Coordinated Public Employee Pension Plan, which covers the balance of the City civilian employees. The employees covered by the Coordinated P.E.R.A. Plan are also covered by Social Security. The City is currently making all pension contributions required by law. For additional background information of the pension plans covering City employees, see Notes to the Financial Statements. Ii r. Independevit Audit { i 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 { 1 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. I ' Aclznoueedgement 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 Sid Inman iI and Shirley Haapala for their assistance. Very..,truly yours, ■ G 1 ' ; Marvin C. Brunsell Assistant City Manager/Finance Director XI r-+ fl GEORGE M. HANSEN COMPANY Certified Public Accountants r 1 SOUTH PLAZA BUILDING i..� MINNEAPOLIS.MINNESOTA 55416 ii ACCOUNTANTS' OPINION li 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, Minnesota for the year ended December 31, 1978, listed in Sections II and III of the foregoing table of contents. Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the aforementioned financial statements present fairly the financial position of the various funds and account groups of the City of Fridley, Minnesota at December 31, 1978, and the results of operations of such funds and the changes in financial position of the proprietary funds for the year then ended, in conformity with generally accepted accounting , principles applied on a basis consistent with that of the preceding year. 77 1,471.7%.0aft copf-Pop May 25, 1979 n li r. • XII n Certificate of Conformance in Financial Reporting Presented to City For its Annual Financial Report for the Fiscal Year Ended 'December 31,1916 A Certificate of Conformance in Financial Reporting is presented by the Municipal Finance Officers Association of the United States and Canada to governmental units whose annual financial reports are judged to substantially conform to the financial reporting principles and standards promulgated by the National Council on Governmental Accounting. • li 1 Pres'. • pq _ �• + xecutive Director 'A A e.* jR`r y 77 Ty Date OCtobQX 12,1977 • XIII n t1 11 The Municipal Finance Officers Association of the United States and Canada (MFOA) awarded a Certificate of Conformance in Financial 11 Reporting to the City of Fridley for our Annual Financial Report for t ' the fiscal year ended December 31 , 1976. In order to be awarded a Certificate of Conformance, a governmental unit must publish an easily readable and efficiently organized comprehensive Annual Financial Report, whose contents conform to nindustry standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Conformance is valid for a period of three years ru-) subject to two Annual Reviews. Our Annual Financial Report for the fiscal year ended December 31 , 1977 successfully passed its required Annual Review. We believe our current report continues to conform to nCertificate of Conformance Program requirements, and we are submitting • it to MFOA for another required Annual Review. " 11 • n n n n irt _ It of sq n XIV II r L " CITY OF FRIDLEY, MINNESOTA ELECTED AND APPOINTED OFFICIALS ,, DECEMBER 31 , 1978 ELECTED OFFICIALS Term of office expires January Elected Mayor - William J. Nee 1981 Council Robert L. Barnette , Councilmember-at-Large 1981 Edward L. Hamernik, Ward I 1979 Dennis L. Schneider, Ward II 1980 Edward J. Fitzpatrick, Ward III 1979 Effective January 1979 r, Mayor - William J. Nee 1981 Council Robert L. Barnette, Councilmember-at-Large 1981 Cheryl Lee Moses, Ward I 1982 Dennis L. Schneider, Ward II 1980 Edward J. Fitzpatrick, Ward III 1982 APPOINTED OFFICIALS Appointed City Manager - Nasim M. Qureshi Clerk-Treasurer - Marvin C. Brunsell p, Attorney - Virgil C. Herrick Department Heads Finance Director - Marvin C. Brunsell Public Safety Director - James P. Hill Parks and Recreation Director - Charles A. Boudreau Fire Chief - Robert D. Aldrich Public Works Director - Richard N. Sobiech Division Heads City Assessor - Mervin Herrman Accounting Officer - Sidney Inman Liquor Stores Manager - Robert L. McGuire ' j Public Works Superintendent - Ralph S. Volkman Community Development Director - Darrel G. Clark n Civil Defense Director - Robert D. Aldrich XV _ ] 1 j --1 1 1 =l J - 1 CITY OF FRIDLEY ORGANIZATION CHART 1 ELECTORATE I IMAYOR AND CITY COUNCIL I I Planning Commission I 1 Charter Commission CATV Commission Police Commission Board of Health Community Development Commission Human Resources Commission Parks & Recreation Commission Appeals Commission Housing & Redevelopment Authority Environmental Quality Commission CITY MANAGER I I LEGAL I - I PERSONNEL I I PURCHASING' I 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 I Elections& Planning Licensing Building Inspection Liquor Stores COMBINED FINANCIAL SECTION ff. ii { Wa 1 CITY OF FRIDLEY, MINNESOTA BALANCE SHEET fl ALL FUNDS AND ACCOUNT GROUPS r � DECEMBER 31 , 1978 Governmental Fund Types 71 General Special Debt ^ General Revenue Service ASSETS* Cash (deficit) $ 26,242 $ (8,235) $ 116 Investments, at cost U.S. Government and other short term obligations (Exhibit III) 1 ,529,989 1 ,091 ,878 59,955 City of Fridley temporary bonds (Exhibit III) 545,000 II Accounts receivable 482,876 206,434 Taxes receivable 14,939 292 .. Special assessments receivable 16,020 Due from other funds Inventories, at cost 16,751 Prepaid expenditures or expenses 86,785 71 Fixed assets, at cost less accumulated depreciation Amount available in General Debt Service Fund Amount to be provided by future taxes Unassessed construction costs Total assets $2,718,602 $1 ,290,077 $60,363 LIABILITIES, RESERVES AND FUND EQUITY Liabilities Accounts and contracts payable $ 833,310 $ 4,645 71 Deposits payable 19,217 Due to other funds Deferred revenue or income 30,959 $ 292 Bonded indebtedness - Future maturities ri Definitive bonds Principal (Exhibit VI) Temporary bonds (held by City of Fridley) l Principal (Exhibit VI) Reserves Fund equity n Investment in general fixed assets Retained earnings Contributions Investment in fixed assets � I Unappropriated Fund balance Appropriated 204,638 1 ,167,378 60,071 71 Unappropriated 1 ,630,478 118,054 Total liabilities, reserves .] and fund equity $2,718,602 $1 ,290,077 $60,363 *A portion of the assets are restricted for debt retirement. See Public Utility Fund financial statements. See accompanying Notes to Financial Statements. -1- EXHIBIT I n i 1 7 Governmental Fund Proprietary Types (Continued) Fund Type Account Groups Total General General Capital Special Fixed Long Term December 31, December 31, Project Assessment Enterprise Assets Debt 1978 1977 $ 1 ,543 $ (92,555) $ 14,947 $ (57,942) $ (223,093) I 305,168 4,954,040 2,455,281 10,396,311 9,681 ,712 j , 545,000 35,000 2,241 4,051 792,590 1 ,488,192 1 ,237,787 ,., 297 15,528 15,869 ' ! 3,755,421 3,771 ,441 4,669,553 5,000 159,351 176,102 156,918 r- 41 ,108 127,893 55,329 ' I 12,072,001 $15,637,067 27,709,068 28,416,349 $ 60,071 60,071 50,815 295,746 295,746 374,551 500,000 500,000 $309,249 $9,120,957 $15,535,278 $15,637,067 $355,817 $45,027,410 $44,475,790 r $ 55,898 $ 141 ,780 $ 104,449 $ 95,817 $ 1 ,235,899 $ 1 ,051 ,950 151 ,123 140 170,480 205,147 5,000 297 500,131 531 ,679 562,577 1 4,947,786 632,214 260,000 5,840,000 6,740,000 545,000 545,000 35,000 144,806 15,637,067 15,637,067 26,413,582 r, 10,166,680 10,166,680 1 ,905,321 1 ,905,321 2,002,767 2,226,343 2,226,343 1 ,741 ,488 r 27,347 3,335,268 4,794,702 4,044,743 225,707 1 ,974,239 1 ,528,730 n $309,249 $91120,957 $15,535,278 $15,637,067 $355,817 $45,027,410 $44,475,790 eTh 1 -2- n CITY OF FRIDLEY, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES �`'r YEAR ENDED DECEMBER 31 , 1978 Governmental Fund Types 1 Special General Debt General Revenue Service Revenue 1 Taxes $1 ,846,370 $35,592 Special assessments levied 9,362 Licenses and permits 179,868 7 Intergovernmental revenue Federal 254,886 State 1 ,233,321 $ 211 ,909 5,964 7 Grants 85,675 298,994 Other 2,748 Charges for current services 104,069 n Fines and forfeits 85,789 jl Interest and rents 133,386 72,592 2,179 Unassessed construction costs ^ Miscellaneous revenue 142,563 f Total revenue $4,078,037 $ 583,495 $43,735 Other sources Proceeds of General Obligation Bonds Transfers from other funds 388,628 Total revenue and other sources $4,466,665 $ 583,495 $43,735 rai Expenditures Current General government $ 572,381 Public safety 1 ,446,302 $ 32,706 Civic center 102,444 Public works 1 ,028,594 26,009 Parks and recreation 822,095 9,735 i � Debt service Bonds issued r, Principal $25,000 i I Interest and fiscal charges 9,479 Total expenditures $3,971 ,816 $ 68,450 $34,479 fl Other uses Transfers to other funds 533,712 Total expenditures and other uses $3,971 ,816 $ 602,162 $34,479 ' 1 Revenue over (under) expenditures $ 494,849 $ (18,667) $ 9,256 Adjustments to fund balance (17,512) 144,806 Net increase (decrease) in fund balance during year $ 477,337 $ 126,139 $ 9,256 Fund balance, January 1 1 ,357,779 1 ,159,293 50,815 7 Fund balance, December 31 $1 ,835,116 $1 ,285,432 $60,071 See accompanying Notes to Financial Statements. rl -3- EXHIBIT II � 1 rj Governmental Fund Types (Continued) Capital Special Project Assessments Total $ 37,824 $1 ,919,786 $ 75,613 84,975 179,868 254,886 6,309 2,594 1 ,460,09T --- 165,200 549,869 2,748 13,695 117,764 85,789 18,247 319,473 545,877 500,000 500,000 1 ,704 385,012 529,279 $229,284 $1 ,296,387 $6,230,938 i � 520,000 520,000 30,000 340,635 759,263 $259,284 $2,157,022 $7,510,201 0. li $ 572,381 1 ,479,008 .. 102,444 $ 808,464 1 ,863,067 $ 88,925 920,755 520,000 520,000 25,000 287,054 296,533 r• $ 88,925 $1 ,615,518 $5,779,188 66 127 595 1 7 n ,30 $ 88,925 $1 ,743,113 $6,440,495 r• $170,359 $ 413,909 $1 ,069,706 127,294 $170,359 $ 413,909 $1 ,197,000 82,695 2,921 ,359 5,571 ,941 n $253,054 $3,335,268 $6,768,941 iI ., -4- EXHIBIT III rl CITY OF FRIDLEY, MINNESOTA r1 STATEMENT OF INCOME AND CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPE (ENTERPRISE FUNDS) YEAR ENDED DECEMBER 31 , 11378 n Sales and cost of sales Sales $ 1 ,323,462 Cost of sales 1 ,062,521 Gross profit $ 260,941 7 Operating income Water sales and sewer rents $ 1 ,319,213 Rental income 14,805 ri Other 85,246 Total operating income $ 1 ,419,264 Operating expenses $ 1 ,494,558 fl Operating income $ 185,647 71 Other income and (expense) Interest on investments $ 153,687 Other interest 20,600 Other income 17,779 Interest expense (28,964) Fiscal agent charges (163) Total other income and (expense) $ 162,939 Net income $ 348,586 rl Retained earnings January 1 3,744,255 $ 4,092,841 Adjustments ' Contribution of water and sewer lines 10,166,680 Elimination of other liability-Deferred credit 123,118 n Add 7I Current value credits received 13,158 Write-off of accounts payable 503 r Deduct - Transfers to other funds (97,956) Retained earnings December 31 $14,298,344 1 See accompanying Notes to Financial Statements. (...) -5- l EXHIBIT IV CITY OF FRIDLEY, MINNESOTA STATEMENT OF CHANGES IN FINANCIAL POSITION iI PROPRIETARY FUND TYPE (ENTERPRISE FUNDS) YEAR ENDED DECEMBER 31 , 1978 7 SOURCE OF FUNDS Operations: Net income for the year $348,586 Items not requiring current outlay of funds Depreciation 118,358 $466,944 Decrease in long-term contracts receivable 45,687 Decrease in anti-trust receivables 1 ,495 Sale of fixed assets 1 ,797 Adjustment of accounts payable 503 r' Metropolitan Waste Control Commission credits received 13,158 r. Total source of funds $529.584. APPLICATION OF FUNDS Purchase of property and equipment $ 22,709 Decrease in other liabilities Deferred income 1 ,579 Deposits payable 668 Bonds payable less portion due within one year 5,241 Transfers to sinking accounts 83,316 Transfers to other funds 97,956 Increase in working capital 318,115 Total application of funds $529,584 Various elements of net increase in working capital Cash and investments $334,931 Accounts receivable 20,500 Inventory 17,897 Contracts for deed receivable (6,917) Prepaid expenses 39,028 Accounts payable (81 ,808) Bonds payable within one year (5,241 ) Deferred income (275) Increase in working capital $318.115 71 See accompanying Notes to Financial Statements. -6- CITY OF FRIDLEY, MINNESOTA 11 EXHIBIT V STATEMENT OF CASH AND SECURITY FOR DEPOSITS DECEMBER 31 , 1978 7 /-- Face amount of securities -7 pledged as Cash collateral Checking account - Fridley State Bank, Fridley, Minnesota General Account $ (63,742) $ 200,000* Petty cash and change funds 5,800 i Total cash $ (57,942) r Certificates of Deposit (included in investments) Fidelity Bank & Trust Company, Minneapolis $ 2,100,000 $2,765,000* Minnesota Federal Savings & Loan, New Brighton 100,000 * it Northwestern National Bank, St. Paul 1 ,390,000 1 ,600,000* First Federal Savings & Loan, Roseville 100,000 Hennepin Federal Savings & Loan, Minneapolis 100,000 *� j Northern Federal Savings & Loan, St. Paul 100,000 Home Federal Savings & Loan, Columbia Heights 100,000 * Farmers & Mechanics Savings Bank, Minneapolis 100,000 * First National Bank, Minneapolis 500,000 500,000* 71 Northwestern National Bank, Minneapolis 500,000 1 ,315,000* Total invested in certificates of deposit $ 5,090,000 $6,180,000 Government securities 5,306,311 City of Fridley Temporary Bonds 545,000 Total investments $10,941 ,311 n *Additional security of $40,000 for demand deposits and $100,000 for time deposits is provided at each depository by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation. SUMMARY STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS ri ALL FUNDS YEAR ENDED DECEMBER 31 , 1978 71 Cash Cash balance(deficit) balance(deficit) January 1 , December 31 , II • Fund 1978 Receipts Disbursements 1978 General Fund $(161 ,292) $ 9,898,480 $ 9,710,946 $ 26,242 fl Special Revenue funds (2,073) 1 ,686 ,926 1 ,693,088 (8,235) General Debt Service Fund 94,551 94,435 116 Capital Projects funds (3,857) 425,638 420,238 1 ,543 Special Assessment funds (54,233) 7,076,674 7,114,996 (92,555) Liquor Fund 4,285 1 ,927,212 1 ,925,171 6,32G Public Utility Fund (5,923) 3,230,914 3,216,243 8,748 Christenson Building Fund 11 ,595 11 ,722 (127) Total . $(223,093) $24,351 ,990 124,186,839 x(57,942) rl-7- EXHIBIT VI r 1 CITY OF FRIDLEY, MINNESOTA STATEMENT OF INVESTMENTS DECEMBER 31 , 1978 Interest rate Maturity Cost Federal Intermediate Credit Bank 8.45% 5/1/79 $ 200,000 „ Federal Intermediate Credit Bank 7;00 4/1/82 100,000 Federal National Mortgage Association 8.70 10/10/80 200,000 Federal National Mortgage Association 8,70 10/10/80 202,617 Federal National Mortgage Association 8.50 9/12/83 100,000 Federal National Mortgage Association 9.25 10/10/83 350,000 Federal National Mortgage Association 8.20 4/10/84 100,387 Federal National Mortgage Association 7.55 12/10/84 500,000 ►., Federal Land Bank Bonds 6.80 10/23/79 204,282 Federal Land Bank Bonds 7.05 10/20/83 100,000 Federal Home Loan Bank Bonds 8.65 5/25/79 191 ,715 „ Federal Home Loan Bank Bonds 9.75 8/25/80 200,625 Federal Home Loan Bank Bonds 9.75 8/25/80 100,000 ' Federal Home Loan Bank Bonds 9.75 8/25/80 175,171 Federal Home Loan Bank Bonds 6.70 11/25/80 511 ,153 Federal Home Loan Bank Bonds 6.70 11/25/80 179,370 U.S. Treasury Notes 7.125 11/30/79 250,294 U.S. Treasury Notes 7.125 11/15/80 200,118 S. Treasury Notes 7.125 11/15/82 400,124 ' %.S. Treasury Notes 8.00 8/15/86 100,597 Small Business Loan 8.90 12/16/85 81 ,470 ,„ Government National Mortgage Association 8.125 7/1/2008 288,838 t ; Government National Mortgage Association 9.00 9/1/2008 250,114 1 Government National Mortgage Association 9.00 12/1/2008 249,436 Certificate of Deposit - Northwestern National , ^ Saint Paul 6.25 1/24/79 150,000 1 Certificate of Deposit - Northwestern National , Saint Paul 6.16 1/24/79 400,000 .. Certificate of Deposit - Northwestern National , r ' Saint Paul 10.92 4/2/79 100,000 � Certificate of Deposit - Northwestern National , Saint Paul 6.40 6/22/79 100,000 ^' Certificate of Deposit - Northwestern National , Saint Paul 6.45 1/24/80 150,000 Certificate of Deposit - Northwestern National , n Saint Paul 6.65 5/16/80 140,000 ) ' Certificate of Deposit - Northwestern National , Saint Paul 6.75 6/24/80 100,000 r. Certificate of Deposit - Northwestern National , Saint Paul 6.82 7/24/80 100,000 Certificate of Deposit - Northwestern National , Saint Paul 6.90 12/23/80 150,000 .. Certificate of Deposit - Fidelity, Minneapolis 6.25 3/9/79 100,000 Certificate of Deposit - Fidelity, Minneapolis 6.30 5/5/79 100,000 (rtificate of Deposit - Fidelity, Minneapolis 10.90 6/18/79 100,000 F. ..ertificate of Deposit - Fidelity, Minneapolis 10.90 6/20/79 100,000 Certificate of Deposit - Fidelity, Minneapolis 8.55 7/26/79 100,000 -8- EXHIBIT VI CONTINUED 7 CITY OF FRIDLEY, MINNESOTA 1 STATEMENT OF INVESTMENTS (CONTINUED) ri DECEMBER 31 , 1978 f' Interest rate Maturity Cost r, Certificate of Deposit - Fidelity, Minneapolis 7.25% 11/17/79 $ 200,000 Certificate of Deposit - Fidelity, Minneapolis 6.60 12/21/79 400,000 Certificate of Deposit - Fidelity, Minneapolis 6.60 12/21/79 100,000 Certificate of Deposit - Fidelity, Minneapolis 6.75 1/24/80 100,000 Certificate of Deposit - Fidelity, Minneapolis 6.75 1/24/80 300,000 Certificate of Deposit - Fidelity, Minneapolis 7.50 1/14/80 100,000 ` Certificate of Deposit - Fidelity, Minneapolis 8.70 7/19/80 200,000 Certificate of Deposit - Fidelity, Minneapolis 7.00 3/10/81 200,000 Certificate of Deposit - Home Federal Savings & Loan, Columbia Heights 8.00 4/11/79 100,000 iI Certificate of Deposit - Farmers & Mechanics , Minneapolis 8.01 4/30/79 100,000 Certificate of Deposit - First Federal Savings & II Loan, Roseville 8.125 5/23/79 100,000 Certificate of Deposit - Northern Federal Savings & Loan, Saint Paul 6.875 7/18/79 100,000 (i Certificate of Deposit - Hennepin Federal Savings & Loan, Minneapolis 6.75 7/22/79 100,000 Certificate of Deposit - First National Bank of Minneapolis 10.95 8/17/79 500,000 Certificate of Deposit - Minnesota Federal Savings & Loan, New Brighton 7.50 2/23/81 50,000 Certificate of Deposit - Minnesota Federal Savings fl & Loan, New Brighton 7.50 4/8/81 50,000 Certificate of Deposit - Northwestern National Bank, Minneapolis 6.25 12/16/81 500,000 Short Term Government Securities - State Street Bank 8.08 Indefinite 70,000 I City of Fridley Temporary Bonds Water, Sewer and Storm Sewer No. 121 7.00 8/1/80 25,000 Street Improvement No. ST. 1978-1 , 2 & 4 7.00 5/15/81 500,000 ri Storm Sewer No. 125 7.00 9/1/81 20,000 Total $10,941 ,311 ' I Allocated by funds ri General Fund $ 2,074,989 Special Revenue Funds 1 ,091 ,878 General Debt Service Fund 59,955 ^ Capital Project Funds 305,168 ' I Special Assessment Funds 4,954,040 Enterprise Funds 2,455,281 Total $10,941 ,311 -9- I I EXHIBIT VII r L. rj CITY OF FRIDLEY, MINNESOTA BONDS PAYABLE - ALL FUNDS DECEMBER 31 , 1978 Issue Interest Maturity Principal date rate date amount Special Assessment Debt Service Funds - Definitive Bonds Improvement Bonds of 1960 January 1 , 1980 10/1/60 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 r+ Total Improvement Bonds of 1960 Special Assessment Debt Service Fund $ 225,000 Improvement Bonds of 1962 February 1 , 1979 5/1/62 3.80 2/1/79 $ 10,000 $ 5,000 per year 3.80 2/1/80-82 15,000 7-.1 Total Improvement Bonds of 1962 Special Assessment Debt Service Fund $ 25,000 Improvement Bonds of 1963 $ 35,000 per year 1/1/63 3.80 1/1/80-83 $ 140,000 ,, Total Improvement Bonds of 1963 Special Assessment Debt Service Fund $ 140,000 Refunding Bonds of 1964 February 1 , 1979 2/1/64 3.40 2/1/79 $ 105,000 February 1 , 1980 3.40 2/1/80 40,000 Total Refunding Bonds of 1964 Special Assessment Debt Service Fund $ 145,000 r, Improvement Bonds of 1965 $ 30,000 per year 5/1/65 3.40 2/1/79-80 $ 60,000 February 1 , 1981 3.40 2/1/81 25,000 $ 25,000 per year 3.50 2/1/82-85 100,000 1 February 1 , 1986 3.50 2/1/86 20,000 i Total Improvement Bonds of 1965 Special Assessment Debt 71 Service Fund $ 205,000 �, it . See accompanying Notes to Financial Statements. -10- EXHIBIT VII CONTINUED ' ' ,S1 r 1 I CITY OF FRIDLEY, MINNESOTA 71 BONDS PAYABLE - ALL FUNDS (CONTINUED) DECEMBER 31 , 1978 n Issue Interest Maturity Principal 71 date rate date amount Special Assessment Debt Service Funds - Definitive Bonds (Continued) Improvement Bonds of 1967 ' I $ 40,000 per year 10/1/67 4.40% 1/1/80-82 $ 120,000 $ 30,000 per year 4.50 1/1/83-87 150,000 January 1 , 1988 4.50 1/1/88 20,000 7 Total Improvement Bonds of 1967 Special Assessment Debt Service Fund $ 290,000 1 rl Improvement Bonds of 1972 February 1 , 1980 10/1/72 4.40 1/1/80 $ 150,000 $150,000 per year 4.60 1/1/81-82 300,000r $ 75,000 per year 4.80 1/1/83-84 150,000 $ 75,000 per year 5.00 1/1/85-86 150,000 January 1 , 1987 5.10 1/1/87 75,000 Fl 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 per 50,000, er year 5.30 1/1/92-94 150,000 Total Improvement Bonds of 1972 Special Assessment Debt Service Fund $1 ,200,000 7 Refunding Bonds of 1975 (Improvement Bond Portion) n January 1 , 1980 3/1/75 6.00 1/1/80 $ 88,035 II 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 n Total Refunding Bonds of 1975 Special Assessment Debt Service Fund $ 467,785 ri ' I L -11- n r-, EXHIBIT VII CONTINUED r, ri - p, CITY OF FRIDLEY, MINNESOTA BONDS PAYABLE - ALL FUNDS (CONTINUED) DECEMBER 31 , 1978 Issue Interest Maturity Principal date rate date amount n ' ' Special Assessment Debt Service Funds - Definitive Bonds (Continued) r, Improvement Bonds of 1976 - February 1 , 1979 2/1/76 4.10% 2/1/79 $ 175,000 r., February 1 , 1980 4.30 2/1/80 175,000 ! ; February 1 , 1981 .4.50 2/1/81 175,000 February 1 , 1982 4.70 2/1/82 175,000 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‘m 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 r., February 1 , 1990 6.00 2/1/90 25,000 Total Improvement Bonds of 1976 Special r, Assessment Debt Service Fund $1 ,200,000 Improvement Ronds of 1977 February 1 , 1979 5/1/77 3.40 2/1/79 $ 65,000 ., February 1 , 1980 3.70 2/1/80 110,000 i ( February 1 , 1981 3.90 2/1/81 110,000 February 1 , 1982 4.00 2/1/82 110,000 February 1 , 1983 4.20 2/1/83 110,000 February 1 , 1984 4.30 2/1/84 110,000 February 1 , 1985 4.40 2/1/85 110,000 February 1 , 1986 4.60 2/1/86 110,000 "' February 1 , 1987 4.70 2/1/87 115,000 _ February 1 , 1988 4.80 2/1/88 50,000 February 1 , 1989 4.90 2/1/89 50,000 1 Total Improvement Bonds of 1977 Special Assessment Debt Service Fund $1 ,050,000 ! I Total Special Assessment Debt Service Funds - Definitive Bonds $4,947,785 . I See accompanying Notes to Financial Statements. -12- EXHIBIT VII CONTINUED il I CITY OF FRIDLEY, MINNESOTA BONDS PAYABLE - ALL FUNDS (CONTINUED) DECEMBER 31 , 1978 Issue Interest Maturity Principal date rate date amount ' General Debt Service Fund - Definitive Bonds (Continued) ri Civic Center Bonds of 1965 $ 30,000 per year 5/1/65 3.40% 2/1/79-81 $ 90,000 fl February 1 , 1982 3.50 2/1/82 30,000 $ 35,000 per year 3.50 2/1/83-86 140,000 I Total General Debt Service Fund Bonds $ 260,000 7 Public Utility Fund - Definitive Revenue Bonds Waterworks Bonds of 1965 (W-75) II $ 50,000 per year 5/1/65 3.40 2/1/79-81 $ 150,000 $ 50,000 per year 3.50 2/1/82-87 300,000 February 1 , 1988 3.50 2/1/88 20,000 rrl Total Waterworks Bonds of 1965 (W-75) Public Utility Fund $ 470,000 71 Refunding Bonds of 1975 (Water Utility Portion) January 1 , 1980 3/1/75 6.00 1/1/80 $ 56,965 January 1 , 1981 6.00 1/1/81 57,750 7 January 1 , 1982 6.00 1/1/82 47,500 4 Total Refunding Bonds of 1975 (Water Utility Portion) $ 162,215 f Total Public Utility Fund Revenue Bonds $ 632,215 Total Definitive Bonds $5,840,000 fl Special Assessment Debt Service n Fund - Temporary Bonds Water, Sewer and Storm Sewer No. 121 8/1/77 7.00 8/1/80 $ 25,000 Street Improvement Projects ST. 1978-1 , fl ST. 1978-2 and ST. 1978-4 5/15/78 7.00 5/15/81 $ 500,000 Storm Sewer No. 125 9/1/78 7.00 9/1/81 $ 20,000 ' I Total Special Assessment Debt Service Fund Temporary Bonds $ 545,000 Total Bonds Outstanding $6,385,000 -13- 7 n EXHIBIT VIII P4 I ' CITY OF FRIDLEY, MINNESOTA 7 COMBINED STATEMENT OF DELINQUENT TAXES RECEIVABLE BY FUNDS DECEMBER 31 , 1978 1975 & r- Funds Exhibit Total Prior 1976 1977 1978 General Fund VII $44,469 $21 ,380 $4,820 $4,353 $13,916 rte, Capital Improvement Fund XVI 516 127 101 288 General Debt Service Fund XIV 1 ,134 592 189 84 269 Total ULM $21 ,972 151_136 $4,538 $14,473 r• n PRI r-, f" See accompanying Notes to Financial Statements. -14- i;`1,\NCIP L SEC''IO�I BY FUND III • THE GENERAL FUND The General Fund accounts for all revenues and expenditures of a governmental unit which are not accounted for in other funds, and it is usually the largest and most important accounting activity for state and local governments. It normally receives a greater variety and number of taxes and other general revenues than any other fund. This fund has flowing into it such revenues as general property taxes, licenses and permits, fines and penalties, rents, charges for current services, state-shared taxes, and interest earnings. The fund's resources also finance a wider range of activities than any other fund. Most of the current operations of governmental units will be financed from this fund. 1 EXHIBIT IX CITY OF FRIDLEY, MINNESOTA GENERAL FUND BALANCE SHEET ., DECEMBER 31 , 1978 AND 1977 ASSETS 1978 1977 Cash (deficit) $ 26,242 $ (161 ,292) Investments, at cost 2,074,989 1 ,797,268 Accounts receivable 70,006 58,967 Taxes receivable Delinquent $ 44,469 $ 51 ,898 Unremitted 14,939 15,243 Less: Estimated uncollectible (44,469) 14,939 (51 ,898) 15,243 Special assessments receivable Delinquent 3,375 6,750 Deferred - Principal 16,020 10,063 Less: Estimated uncollectible (3,375) 16,020 (6,750) 10,063 Accrued interest receivable 412,870 225,718 ^. Inventories, at cost 16,751 15,464 Prepaid expenditures 86,785 53,249 Total assets $2,718,602 $2,014,680 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 491 ,389 $ 293,521 Leave payable 341 ,921 307,151 Deposits payable 19,217 30,923 Deferred revenue - Taxes and special assessments receivables 30,959 25,306 Fund balance Appropriated 204,638 77,987 Unappropriated 1 ,630,478 1 ,279,792 Total liabilities and fund balance $2,718,602 $2,014,680 ' 1 See accompanying Notes to Financial Statements. r, I -15- EXHIBIT X ri Jf n CITY OF FRIDLEY, MINNESOTA fI GENERAL FUND ANALYSIS OF CHANGES IN FUND BALANCE ( I YEARS ENDED DECEMBER 31 , 1978 AND 1977 1978 1977 Add : Revenue $4,466,665 $4,040,435 fI Accounts payable canceled 175 14,137 Adjustment to gas/oil inventory 2,383 $4,469,223 $4,054,572 II Deduct : Expenditures $3,971 ,816 $3,601 ,933 Accounts receivable canceled 2,032 634 Adjustment of leave payable 18,038 28,422 n $3,991 ,886 $3,630,989 fI Increase in fund balance $ 477,337 $ 423,583 ► I Fund balance, January 1 1 ,357,779 934,196 ' I Fund balance, December 31 $1 ,835,116 $1 ,357,779 ► I n n See accompanying Notes to Financial Statements. fl EXHIBIT XI •, CITY OF FRIDLEY, MINNESOTA GENERAL FUND STATEMENT OF REVENUE 1 ^ YEARS ENDED DECEMBER 31 , 1978 AND 1977 ■ 1978 1977 Budget Actual Actual I General property and other taxes Current ad valorem $1 ,675,913 $1 ,749,512 $1 ,622,897 „' Delinquent ad valorem 31 ,092 35,454 37,904 Tax forfeit 5,407 11 ,846 Fiscal disparities 40,104 42,122 35,299 Penalties and interest 7,436 7,264 $1 ,752,516 $1 ,846,370 $1 ,703,364 Special assessments $ 7,857 $ 9,362 $ 5,116 Licenses and permits Licenses Contractors $ 8,050 $ 12,375 $ 9,520 Business 57,045 76,882 62,485 All other 6,500 3,265 4,831 Permits 78,175 87,346 114,407 $ 149,770 $ 179,868 $ 191 ,243 Intergovernmental revenue C.E.T.A. $ 245,135 $ 249,385 $ 147,757 Civil defense 6,700 5,501 10,933 State aid - maintenance 26,625 26,205 26,625 Local government aid 900,071 905,499 789,133 Homestead credit 320,103 301 ,617 292,518 Grants Federal 27,388 34,136 17,085 State 17,820 51 ,539 60,361 Local 2,000 2,748 2,000 $1 ,545,842 $1 ,576,630 $1 ,346,412 Charges for current services General government $ 7,085 $ 11 ,897 $ 12,418 Public safety 12,220 18,858 15,938 Conservation of health 17,040 20,014 19,160 Recreation 35,950 53,300 52,239 $ 72,295 $ 104,069 $ 99,755 Fines and forfeitures $ 75,004 $ 85,789 $ 79,166 7 Revenue from use of money and property Interest on investments $ 75,500 $ 121 ,638 $ 77,805 Rents 11 ,000 11 ,748 10,237 I..-. $ 86,500 $ 133,386 $ 88,042 See accompanying Notes to Financial Statements. 7 -17- EXHIBIT XI CONTINUED ri 7 CITY OF FRIDLEY, MINNESOTA GENERAL FUND Ti STATEMENT OF'REVENUE (CONTINUED) YEARS ENDED DECEMBER 31, 1178 AND 1977 n 1978 1977 II Budget Actual Actual Transfers from other funds rl Liquor Fund $ 85,000 $ 85,000 $ 85,000 Revenue Sharing Fund 186,520 186,520 200,505 Other funds 122,036 117,108 99,238 rl $ 393,556 $ 388,628 $ 384,743 Other revenue $ 93,378 $ 142,563 $ 142,594 fl Prior years' fund balance $ 72,987 Total revenue $4,249,705 $4,466,665 $4,040,435 rl n • I n n rl n • n n n (7) See accompanying Notes to Financial Statements. -18- ,1 fl EXHIBIT XII CITY OF FRIDLEY, MINNESOTA GENERAL FUND 71- STATEMENT OF EXPENDITURES YEARS ENDED DECEMBER 31 , 1978 AND 1977 1978 1977 Budget Actual Actual GENERAL GOVERNMENT ..' Mayor and Council Personal Services $ 48,559 $ 47,063 $ 43,351 Other Expenditures 25,370 14,786 16,650 7 Capital Outlay 144 ! ' $ 73,929 $ 61 ,993 $ 60,001 ,-, Planning Commission Personal Services $ 18,975 $ 18,557 $ 16,415 Other Expenditures 7,490 4,308 4,478 Capital Outlay 143 $ 26,465 $ 23,008 $ 20,893 Other Commissions -, Personal Services $ 6,659 $ 4,364 $ 4,453 Other Expenditures 5,884 4,300 7,171 $. 123543 $ 8,664 $ 11 ,624 r, City Manager Personal Services $ 119,332 $ 115,040 $ 81 ,838 Other Expenditures 38,581 26,435 28,902 Capital Outlay 2,125 2,756 2,678 $ 160,038 $ 144,231 $ 113,418 Personnel Personal Services $ 20,932 $ 21 ,335 $ 12,319 Other Expenditures 3,700 2,568 1 ,085 Capital Outlay 125 125 $ 24,757 $ 24,028 $ 13,404 Legal Personal Services $ 2,660 $ 261 Other Expenditures 51 ,646 $ 53,134 43,916 Pm" $ 54,306 $ 53,134 $ 44,177 I , Elections r, Personal Services $ 13,492 $ 14,306 $ 5,996 Other Expenditures 3,507 1 ,503 1 ,790 Capital Outlay 100 480 1 ,049 $ 17,099 $ 16,289 $ 8,835 Finance eTh Personal Services $ 83,820 $ 83,171 $ 80,480 Other Expenditures 47,165 44,351 38,645 II Capital Outlay 2,236 2,125 2,848 $ 133,221 $ 129,647 $ 121 ,973 T L -19- EXHIBIT XII CONTINUED rl CITY OF FRIDLEY, MINNESOTA 7 GENERAL FUND r STATEMENT OF'EXPENDITURES (CONTINUED) 1 YEARS ENDED DECEMBER 31 , 1978 AND 1977 7I 1978 1977 GENERAL GOVERNMENT, continued Budget Actual Actual 7 I Assessing Personal Services $ 105,255 $ 101 ,413 $ 81 ,119 n Other Expenditures 9,200 9,383 8,802 71 Capital Outlay 246 591 417 $ 114,701 $ 111 ,387 $ 90,338 Total General Government $ 617,059 $ 572,381 $ 484,663 7 PUBLIC SAFETY Police 7 Personal Services $ 952,060 $ 910,555 $ 802,159 Other Expenditures 131 ,824 150,548 105,900 n Capital Outlay 53,324 53,793 47,023 I ) $1 ,137,208 $1 ,114,896 $ 955,082 Fire rl Personal Services $ 251 ,118 $ 251 ,433 $ 227,608 Other Expenditures 52,523 52,703 36,326 Capital Outlay 12,231 11 ,432 2,460 ryi $ 315,872 $ 315,568 $ 266,394 Civil Defense rl Personal Services $ 12,545 $ 13,266 $ 13,220 I Other Expenditures 4,470 2,572 4,592 Capital Outlay 442 $ 17,015 $ 15,838 $ 18,254 II Total Public Safety $1 ,470,095 $1 ,446,302 $1 ,239,730 II CIVIC CENTER fl Personal Services $ 42,877 $ 45,134 $ 37,049 Other Expenditures 49,950 40,785 48,780 n Capital Outlay 18,600 _ 16,525 23,818 I Total Civic Center $ 111 ,427 $ 102,444 $ 109,647 PUBLIC WORKS fl Code Enforcement Personal Services $ 141 ,975 $ 120,230 $ 123,270 n Other Expenditures 43,875 53,368 34,008 ' I Capital Outlay 200 1 ,613 848 $ 186,050 $ 175,211 $ 158,126 Planning Personal Services $ 82,978 $ 74,651 $ 59,862 Other Expenditures 9,025 11 ,724 6,559 Capital Outlay 510 694 353 $ 92,513 $ 87,069 $ 66,774 -20- \/ r1 EXHIBIT XII CONTINUED 7 CITY OF FRIDLEY, MINNESOTA (‘Th GENERAL FUND 7 E i ) YEARSENDEDODECEMBERI31 0, 1978 AND 1977 1978 1977 fl PUBLIC WORKS, continued Budget Actual Actual Engineering r, Personal Services $ 71 ,013 $ 54,484 $ 68,186 r Other Expenditures 14,825 30,673 15,759 Capital Outlay 7,240 6,396 2,247 $ 93,078 $ 91 ,553 $ 86,192 Public Works Personal Services $ 269,854 $ 248,011 $ 225,390 Other Expenditures 310,225 302,122 270,084 Capital Outlay 120,550 124,628 122,176 $ 700,629 $ 674,761 $ 617,650 Total Public Works $1 ,072,270 $1 ,028,594 $ 928,742 PARKS AND RECREATION ^" Naturalist Personal Services $ 76,436 $ 105,558 $ 61 ,665 Other Expenditures 74,090 47,096 77,702 Capital Outlay 19,850 333 12,908 $ 170,376 $ 152,987 $ 152,275 ,� Parks Personal Services $ 175,465 $ 122,113 $ 154,362 Other Expenditures 99,742 105,964 101 ,857 Capital Outlay 126,589 139,410 170,037 $ 401 ,796 $ 367,487 $ 426,256 Recreation r, Personal Services $ 269,984 $ 238,742 $ 195,592 Other Expenditures 79,577 61 ,707 63,557 Capital Outlay 6,065 1 ,172 1 ,471 $ 355,626 $ 301 ,621 $ 260,620 Total Parks and Recreation $ 927,798 $ 822,095 $ 839,151 RESERVE FOR CONTINGENCIES Total Reserve for Contingencies $ 51 ,056 Total expenditures $4,249,705 $3,971 ,816 $3,601, 933 See accompanying Notes to Financial Statements. -21- \-7 SPECIAL REVENUE FUNDS SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for revenues derived from specific taxes or other earmarked revenue sources. They are usually required by statute, charter provision, or local ordinance to finance particular functions or activities of government. CITY OF FRIDLEY, MINNESOTA SPECIAL REVENUE FUNDS BALANCE SHEETS DECEMBER 31 , 1978 ri ri rl Municipal Revenue Anti- fl Combined State Aid Sharing Recession n ASSETS fl Cash (deficit) $ (8,235) $ 2,812 $ 230 Investments, at cost 1 ,091 ,878 1 ,014,613 77,265 r] Accounts receivable Federal Government 55,928 55,928 State of Minnesota 121 ,373 121 ,3734E--- �—�1 Other 29,133 Total assets $1 ,290,077 $1 ,138,798 $133,423 $ -0- rl LIABILITY AND FUND BALANCE Liability - Accounts payable $ 4,645 fl Fund balance Reserve for construction 121 ,373 $ 121 ,373 rl Appropriated 1 ,046,005 899,371 $133,423 Unappropriated 118,054 118,054 n Total liability it and fund balance $1 ,290,077 $1 ,138,798 $133,423 $ -0- rl ! I "1 ' L See accompanying Notes to Financial Statements. -22- Ti EXHIBIT XIII 7/1.'1 fl r• ii r, Teen Community Step Center Development ., $(5,367) $ 74 $(5,984) ` 7,399 1 ,734 20,000 $ 2,032 $1 ,808 $14,016 j $ 23 $ 142 $ 4,480 2,009 1 ,666 9,536 $ 2,032 $1 ,808 $14,016 n -23- CITY OF FRIDLEY, MINNESOTA (c SPECIAL REVENUE FUNDS ANALYSIS OF CHANGES IN FUND BALANCES YEAR ENDED DECEMBER 31 , 1978 riMunicipal Revenue Anti- Combined State Aid Sharing Recession (� Fund balance January 1 , 1978 II before adjustment $1 ,159,293 $1 ,049,363 $ 96,822 $12,108 -_ Adjustment: Add reserve 71 for construction to - fund balance 144,806 144,806 Fund balance January 1 , 1978 fl after adjustment $1 ,304,099 $1 ,194,169 $ 96,822 $12,108 Revenue 583,495 279,713 223,121 fl Expenditures 602,162 335,084 186,520 12,108 Fund balance December 31 , 1978 $1 ,285,432 $1 ,138,798 $133,423 $ -0- ^1 ! 1 1I I II it 1 See accompanying Notes to Financial Statements. -24- ! I EXHIBIT XIV 7(1441 ri Teen Community P. STEP Center Development r` $ -0- $ 1 ,000 $ -0- II $ -0- $ 1 ,000 $ -0- 34,715 10,401 35,545 77-m . 32,706 9,735 26,009 r $2,009 $ 1 ,666 $ 9,536 rtmn i , -25- EI 7 CITY OF FRIDLEY, MINNESOTA ) SPECIAL REVENUE FUNDS STATEMENT OF REVENUE AND EXPENDITURES '� YEAR ENDED DECEMBER 31 , 1978 it Combined Municipal State Aid Budget Actual Budget Actual 71 Revenue State-aid construction apportionment $212,000 $211 ,909 $212,000 $211 ,909 71 Grants and donations 255,770 298,994 Interest on investments 68,000 72,592 68,000 67,804 Prior years' fund balance 67,110 55,000 r] Total revenue $602,880 $583,495 $335,000 $279,713 Expenditures fl Transfers to other funds General Fund $303,630 $303,628 $105,000 $105,000 rl 1977 Street Construction Fund 1 ,000 1 ,148 1 ,000 1 ,148 I 1978 Street Construction Fund 229,000 228,936 229,000 228,936 Other 69,250 68,450 Total expenditures $602,880 $602,162 $335,000 $335,084 rl Revenue over(under) expenditures $ -0- $(18,667) $ -0- $(55,371 ) fl rl El it (-) See accompanying Notes to Financial Statements. -26- E I r EXHIBIT XV 71, n n Community Revenue Sharing Anti-Recession STEP Teen- Center Development Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual $186,520 $218,387 $33,000 $34,715 $9,750 $10,347 $26,500 $35,545 1 4,734 54 $12,110 rm $186,520 $223,121 $12,110 $ -0- $33,000 $34,715 $9,750 $10,401 $26,500 $35,545 77 $186,520 $186,520 $12,110 $ 12,108 i r• $33,000 $32,706 $9,750 $ 9,735 $26,500 $26,009 II $186,520 $186,520 $12,110 $.12,108 $33,000 $32,706 $9,750 $ 9,735 $26,500 $26,009 $ -0- $ 36,601 $ -0- $(12.108) $ -0- $ 2,00 $ -0- $ 666 $ -0- $ 9.536 7 1 II -27- • L_! DEBT SERVICE FUNDS DEBT SERVICE FUNDS Debt Service Funds are created to account for the payment of interest and principal on long- term, general obligation debt other than that r- _ payable from special assessments and debt issued for and serviced primarily by a governmental enterprise. r1 EXHIBIT XVI 1 7 CITY OF FRIDLEY, MINNESOTA GENERAL DEBT SERVICE FUND CIVIC CENTER BONDS OF 1965 BALANCE SHEET DECEMBER 31 , 1978 ASSETS Cash $ 116 Investments, at cost 59,955 Taxes receivable Delinquent $ 1 ,134 Unremitted 292 Less: Estimated uncollectible taxes (1,134) 292 •� Total assets $60,363 n LIABILITY AND FUND BALANCE 1 Liability - Deferred revenue $ 292 Fund balance - Appropriated 60,071 Total liability and fund balance $60,363 ; i See accompanying Notes to Financial Statements. r, -28- EXHIBIT XVII ' I CITY OF FRIDLEY, MINNESOTA ' I GENERAL DEBT SERVICE FUND CIVIC CENTER BONDS OF 1965 fl STATEMENT OF REVENUE, EXPENDITURES AND ANALYSIS OF FUND BALANCE 1 YEAR ENDED DECEMBER 31 , 1978 n Budget Actual Revenue Property taxes $34,230 $35,592 Homestead credit 5,950 5,964 Interest on investments 2,179 Total revenue $40,180 $43,735 Expenditures Bonds $25,000 $25,000 Interest 9,423 9,422 Fiscal agent service charge 60 57 Contingencies 5,697 it Total expenditures $40,180 $34,479 Revenue over expenditures $ -0- $ 9,256 Fund balance, January 1 , 1978 50,815 50,815 Fund balance, December 31 , 1978 $50,815 $60,071 f El ! 1 El I ! 1 See accompanying Notes to Financial Statements. -29- 1 1 CAPITAL PROJECTS FUNDS CAPITAL PROJECTS FUNDS Capital Projects Funds are created to account for all resources used for the acquisition of capital facilities by a governmental unit except those financed by special assessment and enterprise funds. a`- i r-4 EXHIBIT XVIII 1 CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECT FUNDS BALANCE SHEETS DECEMBER 31 , 1978 Capital Islands North Locke Combined Improvement of Peace Park Park ASSETS li Cash (deficit) $ 1 ,543 $ 19,279 $(18,096) $ 340 $ 20 Investments, at cost 305,168 193,367 96,000 4,564 11 ,237 Taxes receivable r Delinquent $ 516 $ 516 Unremitted 297 297 Less: Estimated uncollectible taxes (516) 297 (516) 297 Accounts receivable 2,241 2,241 n Total assets $309,249 $212,943 $ 80,145 $4,904 $11 ,257 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 55,898 $ 52,798 $3,100 Deferred revenue 297 $ 297 Fund balance 27,347 Appropriated 27,347 Unappropriated 225,707 212,646 1 ,804 $11 ,257 Total liabilities and fund balance $309,249 $212,943 $`80,145 $4,904 $11 ,257 n See accompanying Notes to Financial Statements. -30- EXHIBIT XIX 71 T a 1 7 1 CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECT FUNDS ! I ANALYSIS OF CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31 , 1978 Capital Islands North Locke Combined Improvement of Peace Park Park Fund balance (deficit) -- January 1 , 1978 $ 82,695 $127,552 $(49,198) $ 4 1603 $ (262) Revenue 259,284 85,094 158,109 637 15,444 Expenditures 88,925 -0- 81 ,564 3,436 3,925 II Fund balance II December 31 , 1978 $253,054 $212,646 $ 27,347 $ 1 ,804 $11 ,257 71 I 7 7 _I See accompanying Notes to Financial Statements. n -31- I 1 EXHIBIT YX CITY OF FRIDLEY, MINNESOTA CAPITAL PROJECT FUNDS •, STATEMENT OF REVENUE AND EXPENDITURES YEAR ENDED DECEMBER 31 , 1978 Capital Islands North Locke Combined Improvement of Peace Park Park Revenue Property taxes $ 37,824 $37,824 Homestead credit 6,309 6,309 j Interest on investments 18,247 10,961 $ 6,733 $ 309 $ 244 Grants 165,200 150,000 15,200 Transfer from other fund 30,000 30,000 ' I Other 1 ,704 1 ,376 328 II Total revenue $259,284 $85,094 $158,109 $ 637 $15,444 Expenditures rl Interest $ 3,567 $ 3,567 Other 85,358 77,997 $ 3,436 $ 3,925 Total expenditures $ 88,925 $ -0- $ 81 ,564 $ 3,436 $ 3,925 Revenue over (under) expenditures $170,359 $85,094 $ 76,545 $(2,799) $11 ,519 n ^ I 7 I II See accompanying Notes to Financial Statements. -32- ti SPECIAL ASSESSMENT FUNDS Special Assessment Funds are employed to finance and account for the construction and financing of certain public improvements such as residential streets, sidewalks, or storm sewers or the provision of services which are to be paid for wholly or in part from special assessments levied against benefited property. The fact that special assessment improvements are paid for completely or in part by property owners in a limited geographical area deemed to be specially benefited distinguishes 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. 7 EXHIBIT XXI 7 CITY OF FRIDLEY, MINNESOTA SPECIAL ASSESSMENT FUNDS BALANCE SHEETS fl DECEMBER 31 , 1978 .1 Special Special Special I � Assessment Assessment Assessment Combined Construction Debt Service Revolving ASSETS Cash (deficit) $ (92,555) $(69,656) $ (25,400) $ 2,501 7 Investments, at cost 4,954,040 117,016 4,386,981 450,043 Due from the State of Minnesota 1 ,274 1 ,274 Accounts receivable 2,777 2,777 7 Special assessments receivable Delinquent 439,386' 430,684 8,702 Deferred - Principal 3,316,035 3,225,220 90,815 Unassessed construction costs 500,000 500,000 71 Total assets $9 120,957 S_51 ,411 $8,517,485 $552,061 LIABILITIES AND FUND BALANCE r, Liabilities Accounts and contracts payable $ 141 ,780 $141 ,780 Deposits payable 151 ,123 $151 ,123 Bonded indebtedness 7 Future maturities Definitive bonds Principal 4,947,786 $4,947,786 7 Temporary Bonds (held by (City of Fridley) Principal 545,000 545,000 n Fund balance (deficit) - Appropriated 3,335,268 (90,369) 3,024,699 400,938 II Total liabilities and fund balance $9,120957 $ 51 ,411 $8,517,485 $552,061 7 n n r See accompanying Notes to Financial Statements. 71 -33- II EXHIBIT XVII CITY OF FRIDLEY, MINNESOTA ri SPECIAL ASSESSMENT FUNDS ' ! ANALYSIS OF- CHANGES IN FUND BALANCES 'MAR E"1DED DECEMBER 31 , 1978_ .. Special Special Special Assessment Assessment Assessment Combined Construction Debt Service Revolving Fund balance (deficit) January 1 , 1978 $2,921 ,359 $(130,701 ) $2,664,628 $387,432 n Revenue 2,157,022 866,630 1 ,235,147 55,245 n Expenditures 1 ,743,113 826,298 875,076 41 ,739 n it Fund balance (deficit) December 31 , 1978 $3,335,268 $ (90,369) $3,024,699 $400,938 n ' 1 El ' I See accompanying Notes to Financial Statements. -34- I I 7 EXHIBIT XXIII CITY OF FRIDLEY, MINNESOTA r, ' SPECIAL ASSESSMENT FUNDS STATEMENTS OF REVENUE AND EXPENDITURES n YEAR ENDED DECEMBER 31 , 1978 Ii Special Special Special Assessment Assessment Assessment 7 Combined Construction Debt Service Revolving Revenue r, Proceeds from sale of bonds $ 520,000 $520,000 Special assessments levied 75,613 $ 59,043 $16,570 Interest on assessments 297,138 289,841 7,297 n Penalties and interest on assessments 34,769 34,398 371 Unassessed construction costs 500,000 500,000 State of Minnesota-Project reimbursement 2,594 2,594 Charges for services 13,695 13,695 Interest on investments 319,473 10,444 279,310 29,719 Other 53,105 52,939 68 98 Transfers from other funds 340,635 266,958 72,487 1 ,190 fl Total revenue $2,157,022 $866,630 $1 ,235,147 $55,245 Expenditures Construction costs $ 803,467 $803,467 Bonds issued 520,000 $ 520,000 Interest 285,948 285,948 Fiscal agent charges 1 ,106 1 ,106 Other 4,997 $ 4,997 Transfers to other funds 127,595 22,831 \ 68,022 36,742 1 Total expenditures $1 ,743,113 $826,298 $ 875,076 $41 ,739 fl Revenue over expenditures $ 413.909 $ 40,332 $ 360.071 $13.506 7 ! 1 n n r II See accompanying Notes to Financial Statements. -35- \, / EXHIBIT XXIV 71 CITY OF FRIDLEY, MINNESOTA / SPECIAL ASSESSMENT FUNDS fl STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS YEAR ENDED DECEMBER 31 , 1978 Special Special Special Assessment Assessment Assessment Combined Construction Debt Service Revolving n Cash balance (deficit) January 1 , 1978 $ (54,233) $ (40,352) $ (13,916) $ 35 - I Receipts fl Proceeds from sale of bonds $ 520,000 $ 520,000 Special assessments 1 ,275,825 $1 ,230,624 $ 45,201 Interest on assessments 13 5 8 Penalties and interest on assessments 34,769 34,398 371 Interest on investments 319,473 10,444 279,310 29,719 Escrow deposits 29,987 29,987n Other 69,378 68,657 623 98 ! 1 Transfers from other funds 340,635 266,958 72,487 1 ,190 Investments matured 4,486,594 151 ,220 3,896,536 438,838 Total receipts $7,076,674 $1 ,017,279 $5,513,983 $545,412 7 Disbursements Construction costs Transfers to other funds r'l Interest during construction $ 6,480 $ 6,480 Other construction costs 900,256 900,256 Bond retirement Principal 783,276 `$ - 783,276 P Interest 285,948 285,948 Fiscal agent charges 1 ,106 v 1 ,106 Refund of escrow deposits 52,280 134 $ 52, 28O Other 4,015 Transfers to other funds 127,595 22,831 68,022 36,7427 Investments purchased 4,954,040 117,016 4,386,981 450,043' Total disbursements $7,114,996 $1 ,046,583 $5,525,467 $542,9467 Cash balance (deficit) December 31 , 1978 1 (92,555) $ (69.656) $ (25.400) 1_2,MT fl (-) See accompanying Notes to Financial Statements. -36- fl { { { • ENTERPRISE FUNDS Enterprise funds are established to account for { the financing of self-supporting activities of governmental units which render services on a user charge basis to the general public. The most universal type of government enterprise is the public utility engaged in the provision of such basic services as water, electricity, and natural gas. Sanitary sewer systems financed by user charges have also assumed the status of public utility operations in many urban areas, and many cities have combined water and sewer systems under the same management. Another type of government enterprise in Minnesota is the Municipal Liquor Operation. i -, n EXHIBIT XXV n � � CITY OF FRIDLEY, MINNESOTA n ENTERPRISE FUNDS ! , I BALANCE SHEETS DECEMBER 31 , 1978 7 Public Christenson Liquor Utility Building Combined Fund Fund Fund n ! ASSETS Current assets Cash (deficit) $ 11 ,054 $ 6,326 $ 4,855 $ (127) 1 Investments, at cost 2,196,337 451 ,247 1 ,745,090 Accounts receivable 294,149 3,142 287,432 3,575 ,., Inventories, at cost 159,351 155,728 3,623 Prepaid expenses 41 ,108 41 ,108. Total current assets $ 2,701 ,999 $616,443 $ 2,082,108 $3,448 Restricted assets Sinking accounts Cash $ 3,893 $ 3,893 n Investments, at cost 258,944 258,944 I � Accounts receivable - Metropolitan Waste Control Commission 498,441 498,441 Total restricted assets $ 761 ,278 $ 761 ,278 Property, plant and equipment, substantially all at cost less p. accumulated depreciation $12,072,001 $208,273 $11 ,863,728 Total assets $15,535,278 $824,716 $14,707,114 $3,448 7 LIABILITIES AND RETAINED EARNINGS Current liabilities Accounts payable $ 104,449 $ 81 ,368 $ 21 ,550 $1 ,531 7 Bonds payable within one year 106,965 106,965 Deferred income 275 275 Total current liabilities $ 211 ,689 $ 81 ,368 $ 128,515 $1 ,806 7 Other liabilities Bonds payable less portion due within one year $ 525,249 $ 525,249 Deferred income 499,856 $ 1 ,415 498,441 7 Deposits payable 140 140 Total other liabilities $ 1 ,025,245 $ 1 ,415 $ 1 ,023,830 7 Retained earnings Contributions $10,166,680 $10,166,680 Invested in property, plant and equipment 1 ,905,321 $208,273 1 ,697,048 Unappropriated 2,226,343 533,660 1 ,691 ,041 $1 ,642 Total retained earnings $14,298,344 $741 ,933 $13,554,769 $1 ,642 Total liabilities and ii retained earnings $15,535,278 $824,716 $14,707,114 $3.448 See accompanying Notes to Financial Statements. -37- n � I EXHIBIT XXVI CITY OF FRIDLEY, MINNESOTA �` I ENTERPRISE FUNDS COMBINED STATEMENT OF INCOME AND CHANGES IN RETAINED EARNINGS YEAR ENDED DECEMBER 31 , 1978 Public Christenson Liquor Utility Building Combined Fund Fund Fund Sales and cost of sales Sales $ 1 ,323,462 $1,323,462 I Cost of sales 1 ,062,521 1 ,062,521 Gross profit $ 260,941 $ 260,941 n Operating income Water sales and sewer rents $ 1 ,319,213 $ 1 ,319,213 Rental income 14,805 $14,805 Other 85,246 85,246 ' I Total operating income $ 1 ,419,264 $ 1 ,404,459 /$14,805 Operating expenses $ 1 ,494,558 $ 181 ,407 $ 1 ,299,988 $13,163 n Operating income $ 185,647 $ 79,534 $ 104,471 $ 1 ,642 rn I Other income and (expense) Interest on investments $ 153,687 $ 23,074 $ 130,613 Other interest 20,600 2,781 17,819 Other income 17,779 14,218 3,561 it Interest expense (28,964) (28,964) Fiscal agent charges (163) (163) Total other income and ri (expense) $ 162,939 $ 40,073 $ 122,866 Net income $ 348,586 $ 119,607 $ 227,337 $ 1 ,642 7 Retained earnings January 1 3,744,255 707,306 3,036,949 $ 4,092,841 $ 826,913 $ 3,264,286 $ 1 ,642 Adjustments Contribution of water and sewer lines 10,166,680 10,166,680 '� Elimination of other liability- 123,118 Deferred credit 123,118 Add Current value credits received 13,158 13,158 Write-off of accounts payable 503 20 483 ' Deduct - Transfers to other funds (97,956) (85,000) (12,956) I Retained earnings December 31 $14,298,344 $ 741 ,933 $13,554,769 $ 1 ,642,.. See accompanying Notes to Financial Statements. 11 -38- fl n EXHIBIT XXVII flCITY OF FRIDLEY, MINNESOTA / ENTERPRISE FUNDS COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION II YEAR ENDED DECEMBER 31, 1978 Public Christenson Liquor Utility Building Combined Fund Fund Fund n SOURCE OF FUNDS ) ' Operations: Net income for the year $348,586 $119,607 $227,337 $ 1 ,642 Items not requiring current outlay of funds r Depreciation 118,358 - 8,223 110,135 $465,944 $127,830 $337,472 $-.176-47 r, Decrease in long-term contracts receivable 45,687 45,687 ' ' Decrease in anti-trust receivables 1 ,495 1 ,495 Sale of fixed assets 1 ,797 1 ,797 r, Adjustment of accounts payable 503 20 483 Metropolitan Waste Control Commission credits received 13,158 13,158 ,- Total source of funds $529,584 $175,032 $352,910 $ 1 ,642 1i APPLICATION OF FUNDS ,..� Purchase of property and equipment $ 22,709 $ 22,709 Decrease in other liabilities Deferred income 1 ,579 $ 1 ,579 Deposits payable 668 668 '.; Bonds payable less portion due within i one year 5,241 5,241 Transfers to sinking accounts 83,316 83,316 7 Transfers to other funds 97,956 85,000 12,956 Increase in working capital 318,115 88,453 228,020 $ 1 ,642 Total application of funds $529,584 $175,032 $352,910 $ 1 ,642 7 Various elements of net increase in working capital 7 Cash and investments $334,931 $142,228 $192,830 $ (127) Accounts receivable 20,500 1 ,643 15,282 3,575 Inventory 17,897 17,645 252 Contracts for deed receivable (6,917) (6,917) 7 Prepaid expenses 39,028 (12) 39,040 Accounts payable (81 ,808) (66,134) (14,143) (1 ,531 ) Bonds payable within one year (5,241 ) (5,241 ) ^ Deferred income (275) (275) Increase in working capital $318,115 $ 88,453 $228,020 $ 1 ,642 7 r... r See accompanying Notes to Financial Statements. r~ -39- 7I EXHIBIT XXVIII = CITY OF FRIDLEY, MINNESOTA LIQUOR FUND BALANCE SHEET DECEMBER 31 , 1978 AND 1977 - 1978 1977 ASSETS r, Current assets Cash $ 6,326 $ 4,285 Investments, at cost 451 ,247 311 ,060 Accounts receivable 3,142 1 ,499 fl Inventory, at cost 155,728 138,083 Contracts for deed receivable, current portion 6,917 Prepaid expenses 12 n Total current assets $616,443 $461 ,856 Property, plant and equipment, substantially all at cost Land and buildings $198,641 $198,641 Furniture, fixtures and equipment 62,538 62,538 Signs and automotive 13,628 13,628 $274,807 $274,807 fl Less accumulated depreciation 66,534 58,311 Net property, plant and equipment $208,273 $216,496 Other assets Contracts for deed receivable, less current portion $ 45,687 Anti-trust accounts receivable, less current portion 1 ,495 Total other assets $ 47,182 Total assets $824,716 $725,534 n LIABILITIES AND RETAINED EARNINGS r, Current liabilities Accounts payable $ 75,223 $ 9,452 Accrued sales tax 6,145 5,782 Total current liabilities $ 81 ,368 $ 15,234 Other liability Deferred income $ 1 ,415 $ 2,994 Retained earnings Invested in property, plant and equipment $208,273 $216,496 1.1 Unappropriated 533,660 490,810 Total retained earnings $741,933 $707,306 Total liabilities and retained earnings $824,716 $725,534 ' I 71 See accompanying Notes to Financial Statements. -40- r - - 7 EXHIBIT XXIX jl li CITY OF FRIDLEY, MINNESOTA LIQUOR FUND ANALYSIS OF CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31 , 1978 and 1977 1978 1977 Retained earnings January 1 $707,306 $693,625 Net income 119,607 98,681 Adjustment of accounts payable 20 Transferred to General Fund (85,000) (85,000) Retained earnings December 31 $741 ,933 $707,306 7 n n it r, r r. -41- n CITY OF FRIDLEY, MINNESOTA LIQUOR FUND STATEMENT OF INCOME YEARS ENDED DECEMBER 31 , 1978 and 1977 Combined Store No. 2 ri 1978 1977 1978 1977 r, II Sales $1 ,323,462 $1 ,160,937 r, Cost of 1 ,062,521 932,831 71 Gross Profit $ 260,941 $ 228,106 Percent of sales 19.7 19.6 (-7 — I Operating expenses $ 181 ,407 $ 167,518 Percent of sales 13.7 14.4 Operating profit $ 79,534 $ 60,588 Percent of sales 6.0 5.2 Other income $ 40,073 $ 38,093 $2,781 $4,250 Percent of sales 3.0 3.3 Net income $ 119, 607 $ 98,681 $2,781 $4,250 Percent of sales 9.0 8.5 El El El i See accompanying Notes to Financial Statements. -42- f I EXHIBIT XXX r n Store No. 3 Store No. 4 i Hwy. 65 Holly Center 1978 1977 1978 1977 ii $686,195 $591 ,618 $637,267 $569,319 550,355 475,519 512,166 457,312 $135,840 $116,099 $125,101 $112,007 19.8 19.6 19.6 19.7 $ 91,019 $ 84,961 $ 90,388 $ 82,557 13.3 14.3 14.2 14.5 $ 44,821 $ 31 ,138 $ 34,713 $ 29,450 6.5 5.3 5.4 5.2 71 $ 19,359 $ 17,433 $ 17,933 $ 16,410 2.8 2.9 2.8 3.6 $ 64,180 $ 48,571 $ 52,646 $ 45,860 9.3 8.2 8.2 8.8 Ti 71 T I n -43- I EXHIBIT XXXI CITY OF FRIDLEY, MINNESOTA n 1 LIQUOR FUND ; STATEMENT OF OPERATING EXPENSES YEARS ENDED DECEMBER 31 , 1978 AND 1177 Store No. 3 Store No.4 ,� Combined Hwy. 65 Holly Center 7l 1978 1977 1978 1977 1978 19_77,7 Operating Expenses 1 Selling Salary - Clerks $ 86,552 $ 77,642 $ 42,536 $ 38,594 $44,016 $39,04t1 Bags & Wrapping 3,39 2,881 1 ,732 1 ,405 1 ,663 1 ,47; Uncollectable Checks 538 � �. 716 ( � (10) 318 10 352 48 398 Licenses 108 / (10) 54 Sales Tax Shortage (42 32 (74) $ 90,594 $ 81 ,245 $ 444,535 $ 40,327 $46,059 $40,918 ; I Percent of Sales 6.9 7.0 6.5 6.8 7.2 L2 Overhead Utilities $ 8,282 $ 9,111 $ 5,226 $ 6,239 $ 3,056 $ 2,87 Insurance 13,667 11 ,788 6,971 6,041 6,696 5,747 Rent 8,357 8,232 8,357 8,23 Laundry 1 ,100 1 ,128 619 593 481 Repair and Maintenance 4,055 3,617 2,350 1 ,880 1 ,705 1 ,/- ' � Supplies 594 1 ,335 \.P 342 768 252 567 Communications 1 ,126 J� 1 ,260 >> 531 701 595 55 Alarm Service 561�w 315 269 246 221 Advertising 1 ,46 1 ,039 918 532 549 507 Depreciation 8,223 8,719> 6,943 7,169 1 ,280 1 ,55f Other Overhead Expense 11_835 2,114 1 ,079 1 ,349 756 761 49,267 $ 48,835 $ 2 5,294 $ 25,541 $23,973 $23,294 Percent of Sales 3.7 4.2 3.7 4.3 3.8 71 General Management Expense $ 20,992 $ 20,337 $ 10,706 $ 10,372 $10,286 $ 9,96- Inventory Control 6,254 5,380 3,190 2,744 3,064 2,63 Accounting 7,568 4,926 3,860 2,512 3,708 2,414 Warehouse Expense 32 109 16 56 16 52. Data Processing 5,699 5,776 2,907 2,946 2,792 2,83 Other General Expense 1 ,001 910 511 463 490 44/ $ 41 ,546 ,-x $ 37,438 ,, $ 21 ,190 $ 19,093 $20,356 $18,34 Percent of Sales 3.1 3.2 3.1 3.2 3.2 0.2 Total Operating Expenses $181 ,407 $167,518 $ 91 ,019 $ 84,961 $90,388 182257 i Total Percent of Sales 13.7 14.4 13.3 14.3 14.2 (1'40 I , See accompanying Notes to Financial Statements. -44- n EXHIBIT XXXII i r CITY OF FRIDLEY, MINNESOTA Ii LIQUOR FUND STATEMENT OF CHANGES IN FINANCIAL POSITION YEARS ENDED DECEMBER 31 , 1978 AND 1977 ., 1978 1977 SOURCE OF FUNDS Operations: Net income for the year $119,607 $ 98,681 Items not requiring current outlay of funds Depreciation 8,223 7,844 $127,830 $106,525 Decrease in long-term contracts receivable 45,687 75,127 Decrease in anti-trust receivables 1 ,495 1 ,858 Retirement of fixed assets 874 Adjustment of accounts payable 20 Total source of funds $175,032 $184,384 APPLICATION OF FUNDS Purchase of property and equipment $ 3,961 Transfer to General Fund $ 85,000 85,000 Decrease in deferred income 1 ,579 2,038 Increase in working capital 88,453 93,385 n Total application of funds $175,032 $184.384 Various elements of net increase in working capital : Cash $ 2,041 $ 5,826 Investments 140,187 95,869 0041 Accounts receivable 1 ,643 (180) Inventory 17,645 7,589 Contracts for deed receivable (6,917) (7,211 ) Accounts payable (65,771 ) (7,759) 71 Accrued sales tax (363) (761 ) Prepaid expenses (12) 12 n Increase in working capital $ 88,453 $ 93.385 C See accompanying Notes to Financial Statements. -45- I EXHIBIT XXXIII CITY OF FRIDLEY, MINNESOTA f' ` PUBLIC UTILITY FUND BALANCE SHEET DECEMBER 31 , 1978 and 1977 1978 1977 7 ASSETS , Current assets Cash (deficit) $ 4,855 $ (5,923) Investments, at cost 1 ,745,090 1 ,563,038 Accounts receivable 287,432 272,150 Inventory of meters 43,623 2,068 Prepaid expenses , Total current assets $ 2,082,108 $1 ,834,704 Restricted assets '� Sinking accounts i Cash $ 3,893 Investments, at cost 258,944 $ 276,245 Due from other funds 5,000 I `. Accounts receivable-Metropolitan Waste Control Commission 498,441 410,533 Total restricted assets $ 761 ,278 $ 691 ,778 Property, plant and equipment, substantially all at cost 71 Land and improvements $ 152,793 $ 154,590 Buildings 737,067 737,067 Machinery and equipment 1 ,903,563 1 ,880,854 Other improvements 123,909 123,909 Water and sewer lines 10,166,680 $13,084,012 $2,896,420 ^� Less accumulated depreciation 1 ,220,284 1 ,110,149 Net property, plant and equipment $11 ,863,728 $1 ,786,271 Total assets $14,707.114 $4,312,753 LIABILITIES AND RETAINED EARNINGS Current liabilities ^ Accounts payable $ 21 ,550 $ 7,407 Bonds payable within one year 106,965 101 ,724 Total current liabilities $ 128,515 $ 109,131 ,� ' I Other liabilities Bonds payable less portion due within one year $ 525,249 $ 632,214 Deferred income - Metropolitan Waste Control Commission 498,441 410,533 Deferred credit - Sinking account debt service 123,118 71 Deposits payable 140 808 Total other liabilities $ 1 ,023,830 $1 ,166,673 Retained earnings 71 Contributions from other funds $10,166,680 Invested in property, plant and equipment 1 ,697,048 $1 ,786,271 Unappropriated 1 ,691 ,041 1 ,250,678 ri Total retained earnings $13,554,769 $3,036,949 Total liabilities and retained earnings $14,707,114 $4,312,753 7) See accompanying Notes to Financial Statements. -46- rl EXHIBIT XXXIV. .1 i CITY OF FRIDLEY, MINNESOTA PUBLIC UTILITY FUND ANALYSIS OF CHANGES IN RETAINED EARNINGS mm YEARS ENDED DECEMBER 31, 1978 AND 1977 1978 1977 ^' Retained earnings January 1 , before adjustments $ 3,036,949 $2,775,607 Adjustments mm Contribution of water and sewer lines 10,166,680 Elimination of other liability - deferred credit 123,118 Retained earnings January 1 , after adjustments $13,326,747 $2,775,607 Add Net income 227,337 231 ,402 71 Current value credits received 13,158 17,869 Transfer in 10,000 Reduction in deferred credit for debt service 33,657 ^" Write-off of accounts payable 483 Deduct Transfer out - Special Assessment Fund (12,956) (31 ,435) Adjustment of accounts receivable (151) Retained earnings, December 31 $13.554,769 $3,036,949 mm n I See accompanying Notes to Financial Statements. -47- CITY OF FRIDLEY, MINNESOTA I PUBLIC UTILITY FUND STATEMENT OF INCOME n YEARS ENDED DECEMBER 31 , 1978 AND 1977 1978 1977 Combined Combined Operating income 77 Water sales and sewer rents $1 ,319,213 $1 ,180,577 I Connection permits 6,119 9,008 Sales of materials and miscellaneous service 79,127 86,611 n Total operating income $1 ,404,459 $1 ,276,196 Operating expenses n Source of supply $ 591 ,356 $ 498,476 Power and pumping 135,392 121 ,985 Purification 46,047 48,985 Transmission and distribution 291 ,568 246,896 7 Customer accounting and collecting 77,967 67,944 Administrative and general 47,523 41 ,938 Depreciation 110,135 112,928 Total operating expenses $1 ,299,988 $1 ,139,152 1I Operating income (loss) $ 104,471 $ 137,044 Other income and (expense) 71 Interest on investments - operating account $ 112,530 $ 94,895 Interest on investments - sinking accounts 18,083 16,891 7 Other interest - operating account 17,819 12,896 1 Connection charges 3,561 3,465 Interest expense (28,964) (33,657) , Fiscal agents' charges - sinking accounts (163) (132) Total other income and (expense) $ 122,866 $ 94,358 Net income $ 227,337 $ 231 ,402 7 71 Ti Ti 7 See accompanying Notes to Financial Statements. Ti-48- EXHIBIT XXXV r. ! i L p, 1978 1977 1978 1977 Water Water SeWer Sew $551 ,300 $578,520 $767,913 $602,057 1 ,950 2,880 4,169 6,128 62,491 68,872 16,636 17,739 $615,741 $650,272 $788,718 $625,924 $ 1 ,895 $ 1 ,565 $589,461 $496,911 106,780 97,543 28,612 24,442 46,047 48,985 134,946 113,085 156,622 133,811 53,778 45,985 24,189 21 ,959 33,187 34,877 14,336 7,061 96,130 98,400 14,005 14,528 $472,763 $440,440 $827,225 $698,712 $142,978 $209,832 $(38,507) $(72,788) 7, -49- • EXHIBIT XXXVI CITY OF FRIDLEY , MINNESOTA ■ 1 PUBLIC UTILITY FUND ' 1 STATEMENT OF CHANGES IN FINANCIAL POSITION YEARS ENDED DECEMBER 31 , 1978 AND 1977 1978 1977 1 SOURCE OF FUNDS ^� Operations: Net income for the year $227,337 $231 ,402 Items not requiring current outlay of funds Depreciation 110,135 112,928 $337,472 $344,330 Metropolitan Waste Control Commission credits received 13,158 17,868 Sale of fixed assets 1 ,797 Write-off of accounts payable (.receivable) 483 (151) Total source of funds $352,910 $362,047 APPLICATION OF FUNDS Purchase of property and equipment $ 22,709 $ 31 ,188 Decrease in other liabilities Deposits payable 668 (100) r1 Bonds payable less portion due within one year 5,241 ' I Transfers to sinking accounts 83,316* 83,302* Transfer to other funds - Special Assessment Fund 12,956 31 ,435 Increase in working capital 228,020 216,222 Total application of funds $352 ,910 $362,047 7] Various elements of net increase in working capital : Cash and investments $192,830 $230,620 7 Accounts receivable 15,282 (20,057) Inventory 252 (1 ,864) Prepaid expenses 39,040 2,068 Accounts payable (14,143) 5,455 7 Bonds payable within one year (5,241) Increase in working capital $228,020 $216,222 7] *Net of bonds paid less decrease in restricted assets - sinking accounts i I 7) See accompanying Notes to Financial Statements . i -50- w EXHIBIT XXXVII 7 ' I CITY OF FRIDLEY, MINNESOTA CHRISTENSON BUILDING FUND BALANCE SHEET DECEMBER 31 ,-1978 ASSETS r, Cash (deficit) $ (127) Accounts receivable 3,575 j� Total assets $3,448 LIABILITIES AND RETAINED EARNINGS Liabilities Accounts payable $1 ,531 Deferred income 275 Retained earnings - Unappropriated 1 ,642 Total liabilities and ' retained earnings $3,448 PR CHRISTENSON BUILDING FUND ANALYSIS OF CHANGES IN RETAINED EARNINGS Year Ended December 31 , 1978 Retained earnings January 1 $ -O- ! � Net Income 1 ,642 Retained earnings December 31 $1 ,642 iI See accompanying Notes to Financial Statements. -51- EXHIBIT XXXVIII ' I 7 CITY OF FRIDLEY, MINNESOTA r ■ CHRISTENSON BUILDING FUND STATEMENT OF INCOME YEAR ENDED DECEMBER 31 , 1978 7 Operating income Rent $14,805 n Operating expenses Professional services $ 25 Lot maintenance 120 Rent 6,800 Taxes 4,761 Interest 16 Insurance 1 ,441 Total operating expenses $13,163 Net income $ 1 ,642 CITY OF FRIDLEY, MINNESOTA ri CHRISTENSON BUILDING FUND STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED DECEMBER 31 , 1978 SOURCE OF FUNDS 7 Operations: Net income for the year $ 1 ,642 APPLICATION OF FUNDS Increase in working capital $ 1 ,642 7 Various elements of net increase in working capital : Cash . $ (127) ^� Accounts receivable 3,575 Accounts payable (1 ,531 ) Deferred income (275) Increase in working capital $ 1 ,642 7 7 See accompanying Notes to Financial Statements. (7) -52- rl GENERAL FIXED ASSETS G R O U P O F ACCOUNTS 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 these attributes: (1 ) tangible nature; (2) a life longer than the current fiscal year; and (3) a significant value. r. EXHIBIT XXXIX :14\ CITY OF FRIDLEY, MINNESOTA STATEMENT OF GENERAL FIXED ASSETS 7 DECEMBER 31 , 1978 ^ General fixed assets Land $ 1 ,284,198 Building and structures 1 ,120,914 Improvements other than buildings 10,960,335 1 Furniture, fixtures, and office equipment 257,130 Machinery and equipment 1 ,045,916 Specialized equipment 3,464 ^1 Construction in progress 965,110 Total general fixed assets $15,637,067 Investment in general fixed assets Special assessments $10,686,180 State-aid 236,883 General Fund 2,959,615 Other funds 193,901 Liquor Fund 15,421 Contributions 676,969 General obligation bonds 856,597 -1 Public Utility Fund 2,522 Grants 8,979 Total investment in general fixed assets $15,637,067 mrTh See accompanying Notes to Financial Statements. -53- l CITY OF FRIDLEY, MINNESOTA 7 SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTIONS AND ACTIVITIES r YEAR ENDED DECEMBER 31 , 1978 Other Total Land Buildings Improvements '1 General Government City Manager $ 27,040 Accounting 54,610 Assessing 6,788 Elections 24,681 Planning 17,646 El Civic Center 712,583 $ 18,448 $ 664,690 Total General Government $ 843,348 $ 18,448 $ 664,690 7 Public Safety Police Protection $ 141 ,178 7 Fire Protection 324,361 $ 70,281 Inspectional Services 1 ,626 Civil Defense 29,069 7 Total Public Safety $ 496,234 $ 70,281 Public Works Engineering $ 52,353 Street Improvements 6,625,995 $ 5,103 $6,206,934 7 Water, Sewer and Storm Sewer 4,312,685 4,312,685 Traffic Signal 101 ,561 101 ,561 7 City Garage 373,860 97,940 $ 265,101 Total Public Works $11 ,466,454 $ 103,043 $ 265,101 $10,621 ,180 7 Parks/Naturalist Parks $ 1 ,825,925 $1 ,159,655 $ 107,828 $ 335,684 Naturalist 39,996 3,052 13,014 3,471 ..., Total Parks & Naturalist $ 1 ,865,921 $1 ,162,707 $ 120,842 $ 339,155 7 Total General Fixed Assets Allocated to 7 Functions $14,671 ,957 $1 ,284,198 $1 ,120,914 $10,960,335 Construction in Progress 965,110 71 Total Fixed L Assets $15,637,067 See accompanying Notes to Financial Statements. -54- I EXHIBIT XXXX r/.1 Furniture and Specialized Machinery Equipment Equipment $ 7,344 $ 19,696 11 54,610 6,788 r, 24,681 5,850 11 ,796 29,445 fl $ 13,194 $147,016 $ 108,783 $ 32,395 238,965 15,115 1 ,626 26,980 2,089 $ 376,354 $ 49,599 $ 26,931 $ 24,982 $ 440 413,958 10,819 $ 440,889 $ 35,801 $ 440 $ 201 ,849 $ 17,885 $ 3,024 fl 13,630 6,829 .7 $ 215,479 $ 24,714 $ 3,024 7 $1 ,045,916 $257,130 $ 3,464 I -55- EXHIBIT XXXXI CITY OF FRIDLEY, MINNESOTA STATEMENT OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION, ACTIVITY AND SOURCE 1 YEAR ENDED DECEMBER 31 , 1978 Function January 1 , 1978 Additions Deductions December 31 , 1978 General Government 7 City Manager $ 18,795 $ 8,623 $ 378 $ 27,040 Accounting 51 ,887 4,057 1 ,334 54,610 Assessing 6,593 195 6,788 7 Elections - Voter Registration 21 ,923 2,758 24,681 Planning 15,226 2,942 522 17,646 Civic Center 707,471 5,112 712,583 7$ 821 ,895 $ 23,687 $ 2,234 $ 843,348 Public Safety Police Protection $ 118,243 $ 56,235 $ 33,300 $ 141 ,178 Fire Protection 311 ,459 12,902 324,361 Inspection Services 1 ,626 1 ,626 Civil Defense 29,069 29,069 $ 460,397 $ 69,137 $ 33,300 $ 496,234 Highways Engineering $ 45,505 $ 6,916 $ 68 $ 52,353 7 Street Improvements 8,312,193 104,353 1 ,790,551 6,625,995 Water, Sewer & Storm Sewer 14,459,705 19,660 10,166,680 4,312,685 Traffic Signals 101 ,561 101 ,561 (-7 City Garage 372,979 1 ,266 385 373,860 $23,291 ,943 $ 132,195 $11 ,957,684 $11 ,466,454 Parks i Parks $ 1 ,620,133 $ 207,654 $ 1 ,862 $ 1 ,825,925 Naturalist 34,975 5,021 39,996 $ 1 ,655,108 $ 212,675 $ 1 ,862 $ 1 ,865,921 7 Construction in progress $ 184,239 $ 842,132 $ 61 ,261 $ 965,110 7 Total $26,413,582 $1 ,279,826 $12,056,341 $15,637,067 "� Source I Special Assessments $21 ,923,240 $ 766,134 $12,003,194 $10,686,180 State Aid 236,883 236,883 General Fund 2,653,766 342,024 36,175 2,959,615 Other Funds 71 ,384 139,489 16,972 193,901 Liquor Fund 15,421 15,421 Contributions 653,769 23,200 676,969 General Obligation. Bonds 856,597 856,597 Water and Sewer Public Utility Fund 2,522 2,522 ^� Grants 8,979 8,979 � I / Total $26,413,582 $1 ,279,826 $12,056,341 $15,637,067 L See accompanying Notes to Financial Statements. -56- 1 GENERAL LONG - TERM DEBT GROUP OF ACCOUNTS General obligation bonds and other forms of long- term debt supported by general revenues are obligations of a governmental unit as a whole and not its individual constituent funds. Moreover, the proceeds of such debt may be spent on facilities which are utilized in the operations of several funds. For these reasons, the amount of unmatured long-term indebtedness which is backed by the full faith and credit of the government should be recorded and accounted for in a separate self-balancing group of accounts titled the "General Long-Term Debt Group of Accounts." This debt group will include, in addition to conventional general obligation bonds, time warrants and notes which have a maturity of more than one year from date of issuance. ; I EXHIBIT XXXXII :144 7, 1 1 CITY OF FRIDLEY, MINNESOTA `1 STATEMENT OF GENERAL LONG-TERM DEBT YEAR ENDED DECEMBER 31 , 1978 Amount available and to be provided for the payment of general long-term debt Amount available in General Debt Service Fund $ 60,071 Amount to be provided by future taxes 295,746 Total available and to be provided $355,817 1 General long-term debt payable Serial Bonds $260,000 Contracts - City Garage and Garage Addition 95,817 Total general long-term debt payable $355,817 (.Th 1 1 See accompanying Notes to Financial Statements. -57- NOTES TO FINANCIAL STATEMENTS )e CITY OF FRIDLEY, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31 , 1978 ,, Note 1 - Summary of Significant Accounting Policies The accounting policies of the City of Fridley conform to generally accepted "� accounting principles. The following is a summary of the significant policies: Basis of accounting Governmental funds - Revenue and expenditures are recognized on the modified accrual basis. Under the modified accrual basis, revenue is recognized in the accounting period in which they become available and measurable. Expen- ditures are recognized in the accounting period in which the fund incurred 71 the liability, if measurable, except for unmatured interest on general long- term debt and special assessment debt. Proprietary funds - Income and expenses are recognized on the accrual basis. Under the accrual basis, income is recognized in the accounting period in which they are earned and become measurable; expenses are recognized in the period incurred, if measurable. The following transactions are accounted for as described below: (a) General property taxes - Revenue is recognized in the year of anticipated collection, with amounts due from the County and received early in the following year set up as a receivable (unremitted taxes). Allowances are provided for the full amount of delinquent taxes receivable. This procedure has the effect of recognizing general property taxes as revenue when cash is received because of the uncertainty of collection of the delinquent amount. 71 (b) Interest revenue on special assessments receivable - Interest revenue is recognized in the year of anticipated collection of the current principal 71 installment. (c) Interest expense on general bonded indebtedness, special assessment bonds .1 when utility revenue bonds - Interest expense is recorded as an expenditure when paid; interest is not accrued unless fully matured and not paid. (d) Bond and interest payments due January 1 - Expenditures are recognized when amounts are remitted to the paying agent (usually in December) for payment of bonds and interest. Investments - Investments are carried at cost, which approximates market. Cost includes principal , accrued interest and premium or discount. Investment revenue is recorded as earned and is allocated to the respective funds on the basis of applicable participation by each fund. -58- n CITY OF FRIDLEY, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31 , 1978 / Mote 1 - Summary of Significant Accounting Policies (continued) Inventories - Inventories held by the General Fund and Enterprise funds are fl stated at cost which is lower than market on a first-in first-out basis and accounting controls are maintained under a perpetual system. The only other items of inventory would be a small quantity of supplies which were expensed when 'l purchased. Property, Plant and Equipment-Enterprise Funds - The property, plant 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. No depreciation has been taken on water and sewer lines as Council has adopted a policy of not depreciating assets contributed by other funds. If depreciation II had been charged on those assets financed by other funds, the income of the Public Utility Fund would have been $24,003, a decrease of $203,334. '� General Fixed Assets - General Fixed Assets purchased are recorded as expenditures 7I 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 depreciation has been provided on the general fixed assets. 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 rathern are set up in a separate self-balancing group of accounts known as the "general long-term debt group of accounts." Budget - A plan of financial operation is set forth in the annual budget adopted by the City Council . The amounts shown in the financial statements represent the original budgeted amount and all revisions made during the year. Note 2 - Pending Litigation With the exception of the below-mentioned items, 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. 1 The City is involved in a suit for breach of contract wherein the plaintiff alleges that the City of Fridley and Comstock & Davis, Consulting Engineers, misled him in describing existing conditions in regard to a utility project. It is alleged that the plaintiff contractor did a substantial amount of work for which he was not compensated. The plaintiff is asking $375,000 in damages. It is the position of the City that if there is any liability, it is that of Comstock & Davis who were hired by the City to design and supervise the construction. The City is involved in several other litigations; however, any liability on n these cases is covered by an adequate amount of liability insurance. -59- I ii CITY OF FRIDLEY, MINNESOTA t NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31 , 1978 It Note 3 - Deferred Credit - Metropolitan Waste Control Commission (Public **�� Utility Fund) II The deferred credit of the Public Utility Fund represents: 71 1 . The City's share of equity in the City's sewer interceptors is $389,668 (the interceptors were acquired by the Commission on January 1 , 1971 ) . This receivable will be paid to the City in annual installments with interest through 1999. Repayment will be made by issuing credits against fl future disposal charges from the Commission. 2. The amount of $47,339, which will be repaid with interest through 1988, is for advances made to the Comission during 1971 and 1972. 3. The remaining balance of $61 ,434 represents the final cost allocation for 1977. This amount will be credited against disposal charges from the Commission in 1979. Note 4 —Pension Plans (All Funds) The City has no pension funds as such. Other agencies are responsible for the administration of all of the pension plans covering City employees. Employees of the City of Fridley are covered by five pension plans: 1 ) Fridley Volunteer Firefighter's Relief Association for volunteer firefighters; 2) Fridley Police Pension Association for police officers hired prior to December 15, 1975; 3) Public Employees Retirement Association (P.E.R.A. ) Police and Fire Plan covering the City's full-time firefighters and newly-hired police officers; 4) the basic Public Employees Retirement Association (P.E.R.A. ) covering certain other 71 City civilian employees; and 5) the Coordinated Public Employees Retirement Association (P.E.R.A. ) which covers the balance of the City civilian employees. The employees covered by the Coordinated P.E.R.A. Plan are also covered by Social Security. The City is currently making all pension contributions required by law. 7 A brief explanation of each of the pension plans follows: 1 . Fridley Volunteer Firefighter's Relief Association: As of December 31 , 1978, there were thirty-eight active volunteer firefighters covered by this pension system. The employer's contribution in 1978 was $45,683. The pension plan provides benefits for volunteer firefighters only. It provides no benefits for full-time firefighters. The City's full-time firefighters are covered by the P.E.R.A. Police and Fire Plan. The Fridley Volunteer Firefighter's Relief Association plan is actuarially sound; an audit report prepared by the State Auditor's Office as of December 31 , 1977 shows an actuarial surplus in the Fund of prTh $83,359. Funding for the pension plan is provided entirely from the 2% rebate received from the State of Minnesota. The source of revenue for this rebate is a 2% levy on all fire insurance premiums written in the City of Fridley. In 1978 this source of revenue provided $45,683 to the Fund which was in excess of the amount needed to meet the normal pension costs. -60- ' 1 CITY OF FRIDLEY, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31 , 1978 P Note 4 - Pension Plans (All Funds) (continued) 2. Fridley Police Pension Association: The Fridley Police Pension Association was incorporated on December 26, 1966 to be effective January 1 , 1967. On December 31 , 1977, the plan covered twenty-six active sworn police officers. In 1978, the employer's 7 contribution was $119,583. On December 15, 1975, the City Council adopted an ordinance which had 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 had the effect of substantially reducing the City's liability for newly-hired police officers because the State-wide P.E.R.A. Police and Fire Plan has retirement benefits less liberal than those of the Fridley Police Pension Association. This action of the City Council has been upheld by the Minnesota District Court. In addition, a special bill was adopted by the State Legislature with an effective date of July 11 , 1977, which also provided for putting new officers in P.E.R.A. in addition to some ^� other features. An actuarial report prepared for the Fridley Police Pension Association by Gabriel , Roeder, Smith & Company shows an unfunded actuarial deficit of $588,573 as of December 31 , 1978. Assets of the Association were - shown as $1 ,265,283 and total liabilities of $1 ,853,856. In 1969 the State Legislature adopted legislation requiring all municipalities in the r r1 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 of the plan would be frozen. The purpose of this legislation was to prevent an increase in unfunded pension liabilities and to cause the employee and employer 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 24.03% of payroll , according to "� Gabriel , Roeder, Smith & Company, actuaries. In addition to meeting this normal cost, the 1969 Guidelines Act requires that interest on the deficit in the amount of 5% be paid to the Association. This is the funding level that is required to be reached by the year 1980. The interest on the deficit amounts to approximately 3.9% of payroll . The total funding requirements of the plan, therefore, are approximately 27.93% of covered payroll with the employees contributing 8% and the City 19.93%. The City receives a 2% surcharge on automobile insurance policies written in the City. This is channeled through the State of Minnesota to the City for the purpose of helping to pay the employer's share of pension costs. In 1978, this amounted to $50,395. The City contributed $69,188 of its own money during 1978. The total contribution to the fund for the employer's share was $119,583. This compares with a normal cost for the employer's share of the plan, assuming there was no deficit, of $90,945. The amount the City and the employees contributed is in excess of the level of funding that must be reached by 1980. Because of the Council 's action in placing newly-hired police officers in the State-wide P.E.R.A. Police and Fire Plan, the Fridley Police Pension Association Plan will -61- 1 1 CITY OF FRIDLEY, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31 , 1978 I + Note 4 - Pension Plans (All Funds) (,continued 2. Fridley Police Pension Association (continued) eventually be phased out. It is the intent of the City to meet or exceed the funding requirements as provided by the Guildeines Act for this pension plan and to retire the deficit entirely on or before 2010 as is provided for by State legislation. The City bears the ultimate funding responsibility for the fund except for the amount contributed by the employees. 3. Public Employees Retirement Association - Police and Fire Plan: ii As of December 31 , 1978, there were eleven full-time employees in the State-wide P.E.R.A. Police and Fire Plan. The employer's contribution in 1978 was $24,256. The normal cost of this plan is 20% of payroll . The employee contributes 8% of payroll and the employer contributes 12%. According to the Financial Report of the Public Employees Retirement Association, this plan was 82% funded as of June 30, 1978. The City's funding responsibility is limited to the 12% employer's contribution. 4. Basic Public Employees Retirement Association Plan: On December 31 , 1978, there were thirty-one permanent employees covered by the State-wide Basic Public Employees Retirement Association Plan. Employees under this plan are not covered by Social Security. This is a state-wide pension system covering local government employees through- out the State of Minnesota with the exception of the City of Minneapolis. The normal cost of this pension plan is 16% of payroll plus 2-1/2% to make up the actuarial deficit. Employees contribute 8% of payroll and employer contributes 8%, plus an additional 2-1/2% which is applied towards the actuarial deficit. The employer's contribution to this plan was $54,263 in 1978. State law provides that the actuarial deficit is to be retired by 1997. According to the Financial Report, the plan was 77 57% funded as of June 30, 1978. 7 5. Coordinated Public Employees Retirement Association: As of December 31 , 1978, there were fifty-four permanent employees and sixteen temporary employees covered under this plan. The employer's 7 contribution in 1978 was $51 ,126. 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 addi- tional 1-1/2% to make up the actuarial deficit of the fund. The employee contributes 4% of payroll and the employer 4% of payroll , plus an additional 1-1/2% to retire the actuarial deficit. Under State law, the I ; actuarial deficit is scheduled to be retired by 1997. The Financial -62- 71 CITY OF FRIDLEY, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31 , 1978 Note 4 - Pension Plans (All Funds) (continued) 5. Coordinated Public Employees Retirement Association (continued) Report shows the plan was 104% funded as of June 30, 1978. The City's responsibility is limited to the 5.5% contribution. The funding rate for the Basic and Coordinated P.E.R.A. plans, taken as a whole, was 69% on June 30, 1978. It should be noted that CETA employees are covered by Social Security, but no other pension plan. Note 5 - Leases 7 The City leases space for Liquor Store No. 4 at the Holly Shopping Center, ^� 6586 University Avenue Northeast. A lease was entered into on the 13th day of May 1974 which provides for the following rent schedule in 1979: First four months of 1979 $2,700.00 basic rent First four months of 1979 144.00 lot maintenance $2,844.00 A new lease was entered into on October 30, 1978 which provides for the 7 following rental payments effective May 1 , 1979. $13,600 per annum for each of the first four lease years ( $15,192 per annum for each of the fifth through eighth years In addition to the above amounts, the City is required to pay $61 each month 7 for the first four years of the lease for lot maintenance and $73 per month during the fifth through the eighth years for lot maintenance. The City will also share on a pro rata basis any increase in taxes over the base year of ^� 1978. In addition, the City has a lease-purchase agreement for the purchase of • certain real estate located within Fridley. The agreement expires July 31 , 1979 but contains provisions for two one-year extensions. The City also has the option to purchase the property for $275,000. Presently the City pays $1 ,700 per month rent, or $20,400 annually, plus all other operating expenses. Note 6 - Bonded Debt The City had four types of bonded debt outstanding at December 31 , 1978. They were: 1 ) general obligation bonds for the Civic Center, 2) general obligation improvement bonds, 3) general obligation utility revenue bonds, and 4) public utility revenue bonds. The general obligation bonds are payable solely from general property taxes. mi The general obligation improvement bonds and general obligation utility revenue bonds are payable primarily from other sources such as special assessments and utility revenue, respectively, with any deficiency to be provided for by general property taxes. The public utility revenue bonds are payable solely i from the revenue of the City's utilities fund. See the supplemental informa- tion for schedules of bond and interest maturities. n -63- •i CITY OF FRIDLEY, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31 , 1978 Note 7 - Revenue Bonds At December 31 , 1978, the Public Utility Fund had $632,214 of revenue bonds outstanding. The net income of the Public Utility Fund along with general property taxes has been pledged to pay the principal and interest. The City , i has not levied taxes for the payment of these bonds or interest thereon. Note 8 - Bond Covenants The revenue bond issues have specific covenants which are to be followed by the City. The City has complied with these covenants. Note 9 - Industrial Revenue Bonds On March 21 , 1977 the Council authorized the issuance of $1 ,500,000 of Industrial Revenue Bonds for Safetran Systems Corporation. On December 31 , 1978, $1 ,500,000 in bonds were outstanding for this issue. Note 10 Vacation and Sick Leave The General Fund balance sheet as presented reflects the City's accrued liability for vacation benefits for all City employees. It also includes the estimated potential liability for sick leave benefits for all City employees. The City's liability for sick leave accrual was estimated on the basis of one-third of the total sick leave accumulations for all City employees. Ti I -64- STATISTICAL SECTION IV TABLE I 7-4\ 71 '1 CITY OF FRIDLEY, MINNESOTA GENERAL FUND EXPENDITURE ANALYSIS BY FUNCTION 71 General Civic Public Public Parks and Year Government Center Safety Works Recreation Total 1969 $199,356 $ 56,049 $ 496,542 $ 368,494 $200,269 $1 ,320,710 1970 230,473 50,051 565,629 352,661 327,552 1 ,526,366 1971 255,423 53,809 621 ,908 418,167 341 ,533 1 ,690,840 7%Th 1972 293,510 56,562 652,201 453,682 351 ,739 1 ,807,694 1973 310,866 62,076 848,448 495,006 407,943 2,124,339 1974 357,012 61 ,449 893,201 675,381 493,160 2,480,203 71 1975 436,032 77,753 1 ,016,774 755,904 582,982 2,869,445 1976 476,286 80,067 1 ,146,181 879,626 699,304 3,281 ,464 !1 1977 484,663 109,647 1 ,239,730 928,742 839,151 3,601 ,933 71 1978 572,381 102,fin4 1 ,446,302 1 ,028,594 822,095 3,971 ,816 n r i I j -65- TABLE 2 7 71 Ti CITY OF FRIDLEY, MINNESOTA GENERAL FUND REVENUE BY SOURCE ' l LAST TEN FISCAL YEARS Ti Charges Inter- General Licenses for govern- Inter- I Property Permits, Current mental Fund Other Total .__ Year Tax and Fines Services Revenue Transfers Revenue Revenue 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 r] 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 1977 1 ,703,364* 270,409 99,755 1 ,346,412 384,743 235,752 4,040,435 fl 1978 1 ,846,370* 265,657 104,069 1 ,576,630 388,628 285,311 4,466,665 Increases in general property taxes is partially attributable to change in accounting ' 1 procedures, which now include pension contributions and other employee benefits in the operating progams of the General Fund. Ti *Homestead credit received for these two years is reported as part of Intergovernmental 71 Revenue rather than the General Property Tax source. Ti (7) Ji -66- I I TABLE 3 rLTh pit CITY OF FRIDLEY, MINNESOTA TAX LEVIES AND TAX COLLECTIONS YEARS 1969 THROUGH 1978 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 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 1977 2,057,083 2,033,169 98.84 39,505 2,072,674 1 .0076:1 1978 2,199,318 2,177,318 99.00 48,922 2,226,240 1 .0122:1 -67- CITY OF FRIDLEY, MINNESOTA n ASSESSED VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY I (Shown by Year of Collectibility) 71 Years 1970 Through 1979 Fiscal Period fl_ 1970 1971 1972 1973 Population 29,233**** 29,636 30,340 31 ,143 (2) Real Property Estimated Market Value $179,336,929 $215,276,076 $224,892,331 $266,730,657 Assessor's Lmt. Mar. Val . $ 55,773,785 $ 67,811 ,964 $ 69,941 ,515 $242,991 ,629 71 Assessed Value Homestead $ 5,126,387 $ 5,271 ,642 $ 5,295,419 $ 16,233,935 Excess and Non-Homestead 14,063,578 18,649,587 19,425,726 73,166,443 Area-Wide Allocation --- --- --- --- ' I Taxable Value $ 19,189,965 $ 23,921 ,229 $ 24,721 ,145 $ 89,400,378 Personal Property Estimated Market Value Taxable Property $ 28,671 ,122 $ 32,262,943 $ 36,379,141 $ 15,796,166 Exempt Property 10,211 ,890 10,593,848 --- --- Total Market Value $ 38,883,012 $ 42,856,791 $ 36,379,141 $ 15,796,166 Assessor's Value Taxable Property $ 8,916,719 $ 10,162,827 $ 11 ,313,913 $ 14,390,307 Exempt Property 3,175,898 3,337,062 --- --- II Total Assessor's Value $ 12,092,617 $ 13,499,889 $ 11 ,313,913 $ 14,390,307 Taxable Value: Taxable Property $ 3,245,428 $ 3,687,092 $ 4,080,720 $ 6,187,860 Exempt Property 1 ,155,935 1 ,210,692 --- --- - ' Taxable Value $ 4,401 ,363 $ 4,897,784 $ 4,080,720 $ 6,187,860 n Total Real & Personal Property ' 1 Estimated Market Value $218,219,941 $258,132,867 $261 ,271 ,472 $282,526,823 Limited Market Value $ 67,866,402 $ 81 ,311 ,853 $ 81 ,255,428 $257,381 ,936 71 Total Taxable Value $ 23,591 ,328 $ 28,819,013 $ 28,801 ,865 $ 95,588,238 Ratio of Market Value To Limited Market Value .311 :1** .315:1** .311 :1** .911 :1* 7 To Taxable Value .108:1 .112:1 .110:1 .338:1 Per Capita Valuations I Estimated Market Value $ 7,465 $ 8,710 $ 8,640 $ 9,072 Taxable Value 807 972 952 3,069 (1 ) Beginning in 1972, the value of inventories and fixtures was dropped. Cities 71 were reimbursed by the State via other State Aids. (2) 1972 and subsequent valuations reflect changes as provided for in Laws of 1971 , 7 Extra Session, Chapter 31 , amended. Beginning with taxes levied in 1972, collectible in 1973, Minnesota assessed Fl 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. -68- n N.) 7 TABLE 4 .1 Fiscal Period r• -1974 1975 1976 1977 1978 1979 { � 32,542 32,486 31 ,570 31 ,940 31 ,940*** 33,450 (3) $294,415,529 $325,394,031 $367,264,013 $405,285,288 $456,038,596 $474,610,022 $270,273,456 $288,949,935 $327,232,236 $363,541 ,172 $408,865,261 $458,973,683 7" $ 16,582,864 $ 17,104,208 $ 17,644,329 $ 19,607,606 $ 20,453,732 $ 21 ,633,558 ! 84,043,948 90,832,944 105,665,396 117,424,505 124,640,289 134,204,943 --- (3,140,753) (4,541 ,034) (4,812,211 ) (6,271 ,738) (7,376,217) r , $100,626,812 $104,796,399 $118,768,691 $132,219,900 $138,822,283 $148462,284 1 II li $ 17,323,420 $ 18,183,599 $ 18,073,064 $ 18,167,447 $ 19,340,803 $ 17,424,500 $ 17,323,420 $ 18,183,599 $ 18,073,064 $ 18,167,447 $ 19,340,803 $ 17,424,500 $ 15,902,900 $ 16,147,000 $ 16,103,100 $ 16,296,200 $ 17,348,700 $ 17,424,500 • --- --- --- --- --- --- $ 15,902,900 $ 16,147,000 $ 16,103,100 $ 16,296,200 $ 17,348,700 $ 17,424,500 $ 6,838,247 $ 6,943,210 $ 6,924,333 $ 7,007,366 $ 7,459,941 $ 7,492,535 ^1 $ 6,838,247 T 6,943,210 $ 6,924,333 $ 7,007,366 $ 7,459,941 $ 7,492,535 7 $311 ,738,949 $343,577,630 $385,337,077 $423,452,735 $475,379,399 $492,034,522 $286,176,356 $305,096,935 $343,335,336 $379,837,372 $426,213,961 $476,398,183 $107,465,059 $111 ,739,609 $125,693,024 $139,227,266 $146,282,224 $155,954,819 .918:1* .888:1* .891 :1* .897:1* .897:1* .968:1 � ''f .345:1 .325:1 .326:1 .329:1 .308:1 .317:1 � { $ 9,580 $ 10,576 $ 12,206 $ 12,689 $ 14,884 $ 14,710 71 $ 3,302 $ 3,440 $ 3,981 $ 4,359 $ 4,580 $ 4,662 (3) Property values include net amount allocated pursuant to Laws of 1971 , Extra Session, Chapter 23, from Area-Wide "Pool ." Beginning with taxes levied in 1974, collectible in 1975, the value on which the City of Fridley's mill rate is calculated, is not the City's assessed 71 value but a taxable value based on the City of Fridley's assessed value minus the net loss to the Metro Tax Pool . J *Source - State of Minnesota Department of Revenue 1 **Source - Anoka County Assessor's Office ***No census figure for 1978 is available, therefore, t 1977 figure is used. ****United States Census -69- , n I r1 n CITY OF FRIDLEY, MINNESOTA 7 HISTORY OF TAX LEVIES AND MILL RATES (Shown by Year of Tax Collectibility) j� 7 ! 1970 1971 1972 1973 Tax Levies 71 General Fund $ 909,650 $1 ,001 ,209 $ 923,625 $1 ,075,464 P.E.R.A. Fund 90,312 47,402 59,566 53,954 Fire Relief Assoc. Fund 24,057 27,523 17,602 13,776 rl Police Pension Assoc. Fund 44,610 55,862 57,547 49,992 General Debt Service Funds --- 83,590 81 ,531 67,200 Capital Improvement Fund --- --- --- --- n Total $1 ,068,629 $1 ,215,586 $1 ,139,871 $1 ,260,386 fl 7 Mill Rate General Fund 38.56 34.74 32.07 10.84 P.E.R.A. Fund 3.83 1 .64 2.07 .54 Fire Relief Assoc. Fund 1 .02 .96 .61 .14 Police Pension Assoc. Fund 1 .89 1 .94 2.00 .51 General Debt Service Funds -- 2.90 2.83 .68 77 Capital Improvement Fund -- -- -- -- I1 45.30 42.18 39.58 12.71 (1 ) Beginning in 1972, the value of inventories and fixtures was dropped. Cities were reimbursed by the State via other State Aids. (2) 1972 and subsequent valuations reflect changes as provided for in Laws of 1971 , Extra Session, Chapter 31 , amended. Beginning with taxes levied in 1972, collectible in 1973, Minnesota assessed values tripled through elimination of the 33 1/3 ratio previously used to arrive at "adjusted" market values. Tax rates are one-third of past rates. ri 11 El i -70- i ► I ml TABLE 5 rTh A. r- I 7 i 1974 1975 1976 1977 1978 1979 I $1 ,178,854 $1 ,624,144 $1 ,769,965 $1 ,974,563 $2,114,917 $2,264,856 95,895 --- --- --- --- 75,723 --- 39,200 38,400 37,500 36,600 41 ,000 39,900 A, --- -- 46,596 45,920 43,401 43,368 $1 ,389,672 $1 ,662,544 $1 ,854,061 $2,057,083 $2,199,318 $2,348,124 10.97 14.53 14.09 14.18 14.47 14.52 ' I _89 =_ __ __ -- -- .71 -- r, .37 .35 .30 .27 .28 .26 � � -- -- .37 .33 .30 .28 12.94 14.88 14.76 14.78 15.05 15.06 (3) Property values include net amount allocated pursuant to Laws of 1971 , Extra Session, Chapter 23, from Area-Wide "Pool." 71 Beginning with taxes levied in 1974, collectible in 1975, the value on which .l The City of Fridley's mill rate is calculated, is not the City's assessed value but a taxable value based on the City of Fridley's assessed value plus the net addition or deletion from the Metro Tax Pool . li R it I -71- TABLE 6 fl CITY OF FRIDLEY, MINNESOTA R STATEMENT OF VALUATIONS AND LEVIES BY CLASSES OF PROPERTY (l' (1978 Valuation for Taxes Payable in 1979) rl Assessed Valuation Assessed Ratio of Tax Levy Before Valuation Valuation Adjusted Based on 1 Contribution Contribution Distribution 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 Commercial $ 21 ,086,770 $ 3,640,350 $ 17,446,420 11 .187% $ 262,686.17 Industrial 38,948,583 6,723,955 32,224,628 20.663 485,195.70 F.M.C. #85 4,030,820 695,867 3,334,953 2.138 50,203.19 Gas 1 ,271 ,725 219,546 1 ,052,179 .675 15,849.93 Electric 2,180,487 376,432 1 ,804,055 1 .157 27,167.95 7 Billboards, etc. 9,503 1,641 7,862 .005 117.41 r, P.U.-R.E. & Mach. 363,404 62,737 300,667 .193 4,531 .91 '_I Vacant Land 1 ,380,343 1 ,380,343 .885 20,781 .0 Apartments 14,392,800 14,392,800 9.229 216,709.63 - Residential 79,666,601 79,666,601 51 .083 1 ,199,499.21 Received from Metro Pool $4,344,311 4,344,311 2.785 65,381 .88 l TOTALS $163,331 ,036 $11 ,720,528 $4,344,311 $155,954,819 100.000 $2,348,124.00 The assessed value for the first seven classes of property shown above has been reduced for - local taxable value to 82.7363% of the actual assessed value. This taxable value is then mulitplied by the applicable local mill rates. The balance of the assessed value is multiplied by the Metro Mill Rate of 114.365. This money then goes into the Metro Pool . - The City of Fridley received $65,381 .88 from this pool . The tax shown for Residential is the total amount received by the City. Owners of I 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 local governments as part of the levy request. An additional refund may be received 71 by the taxpayer directly from the State depending on income and age. ' I r) II -72- i 7 CITY OF FRIDLEY, MINNESOTA rq TABLE 7 SIGNIFICANT MINNESOTA TAX POLICIES GENERAL 1 All non-exempt property in Minnesota is subject to taxation by local taxing districts. The tax levied on a property is derived by multiplying its assessed valuation by the total tax rate. The tax rate (mills) is determined by the County Auditor, dividing each taxing district's dollar levy (budget less aids and revenues) by its total assessed valuation (taxable value). (Budget taxable value = mill rate. ) Properties are valued by local or county assessors at least every four years at their estimated market or potential sales value (Estimated Market Value = EMV). Because Minnesota legislation limits the amount which any property value (for tax purposes) may be increased in one year, a Limited Market Value (LMV) is used to determine a property's assessed value for tax purposes. (A State objective is to increase undervalued properties to near market value within four years in annual amounts.) 7� The Minnesota Department of Revenue appraises representative properties annually, I comparing sales or market values with the LMV. Sales ratios are averaged over three years to determine an average sales ratio. The sales ratio is also applied to determine municipal and school district state aids. For tax purposes, the assessed valuation of a property is computed on the basis of its Limited Market Value and its category of use. Some examples are: 7 Residential homestead property: Part of the LMV said to be "homestead" ($17,000 for taxes due in 1979-) is assessed at 20%, and the balance at 33 1/3%. The assessed value of a homestead residence with an LMV of $50,000 would be $14,400 for taxes collectible in 1979. (See "homestead" note below. ) PR Residential non-homestead property is assessed at 40% of its LMV. The assessed value of a non-homestead residence (rental property) with an LMV of $50,000 would be $20,000. Industrial/commercial/utility property is assessed at 43% of LMV. (LMV of utilities is computed by the Minnesota Department of Revenue. ) NOTE: A property qualifies as a "homestead" if it is occupied by the owner on the assessment date. The homestead base is adjusted annually by the Department of Revenue based upon an inflation index. EXEMPT PROPERTY: Exempt real property includes Indian lands, public property, and educational , religious and charitable institutions. In 1967, certain personal property was exempted from taxation, and additional properties (farm machinery, inventories, manufacturers' machinery) were exempted in 1971 and 1973. Originally, the State provided 7 direct reimbursement for taxes lost due to newly exempt properties; however, later implemented local government aids consider these, and reimbursements have been "grand- .` fathered in" (guaranteed) at previous levels and are no longer identified. HOMESTEAD CREDIT: Homestead taxes are reduced by a 45% credit (maximum $325) . This credit is subtracted on the tax statement, and the taxpayer pays only the net amount; ,.� homestead credits are reimbursed by the State to the taxing districts in proportion to I their levies, thus relieving the property tax burden. n "CIRCUIT BREAKER" TAX RELIEF: Further residential property tax credits are gauged by percentages of the gross property tax to household income: (1 ) To the extent a home owner's tax or a renter's imputed tax exceeds certain percentages of household income (1% for lower income groups, up to 4% for incomes of $100,000 or more) , home owners or renters may receive State credits up to $800 (combined homestead and income-adjusted credits). -73- TABLE 8 fl 2I ill I CITY OF FRIDLEY, MINNESOTA fl SPECIAL ASSESSMENT LEVIES AND COLLECTIONS YEARS 1969 THROUGH 1978 7 Ratio Total Ratio of Outstand- of Total ing Current Collec- Current Collec- Delin- tions and 7 Current Current tions to quent to Delin- Assess- Assess- Amount Assess- Current quent Fiscal ments ments Due ments Total Levy Assess- Year Due Collected (Percent) Collected Collected (Percent) ments 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 1971 688,887 606,297 88.01 133,150 739,447 104.34 751 ,726 7 1972 746,971 634,697 84.97 119,204 753,901 100.93 727,909 1973 697,797 619,236 88.74 87,793 707,029 101 .32 724,891 71 1974 913,497 742,105 81 .24 81 ,990 824,095 90.21 782,751 1975 953,453 696,193 73.02 273,771 969,964 101 .73 736,530 7_ 1976 942,965 767,498 81 .39 223,843 991 ,341 105.13 706,413 71 1977 918,918 801 ,584 87.23 168,821 970,405 105.60 655,073 - 1978 777,007 699,145 89.98 288,525 987,670 127.11 439,385 ' 1 71 ' 1 n ,,1 11 -74- R r. i TABLE 9 --, CITY OF FRIDLEY, MINNESOTA r~ DEBT SERVICE REQUIREMENTS - ALL FUNDS 7 DECEMBER 31 , 1978 Year Principal Interest Total H 1979 $ 465,000 $ 217,149.53 $ 682,149.53 1980 915,000 265,100.01 1 ,180,100.01 n 1981 1 ,315,000 208,955.00 1 ,523,955.00 1982 790,000 154,812.50 944,812.50 1983 585,000 123,985.00 708,985.00 1984 500,000 99,432.50 599,432.50 1 1985 440,000 78,035.00 518,035.00 1986 390,000 59,103.75 449,103.75 1987 340,000 41 ,990.00 381 ,990.00 'l 1988 235,000 27,800.00 262,800.00 I 1 1989 135,000 18,250.00 153,250.00 1990 75,000 12,637.50 87,637.50 7 1991 50,000 9,262.50 59,262.50 i 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 $6,385,000 $1 ,328,438.29 $7,713,438.29 SUMMARY OF OUTSTANDING BONDED INDEBTEDNESS Bonds Outstanding January 1 , 1978 General Debt Service $ 285,000 Special Assessment - Permanent 5,721 ,061 - Public Utilities - Sinking 733,939 ' 1 Special Assessment - Temporary 35,000 $6,775,000 1 Bonds Issued During 1978 Special Assessment - Temporary $ 520,000 ; I Bonds Retired During 1978 General Debt Service $ 25,000 Special Assessment - Permanent 773,276 Public Utilities - Sinking 101 ,724 Special Assessment - Temporary 10,000 $ 910,000 -, I Balance and Purpose of Bonds Outstanding on December 31 , 1978 General Debt Service $ 260,000 Special Assessment - Permanent 4,947,785 Public Utilities - Sinking 632,215 Special Assessment - Temporary 545,000 $6,385,000 -75- v TABLE 10 71 r 71 71 CITY OF FRIDLEY, MINNESOTA DEBT SERVICE REQUIREMENTS - GENERAL OBLIGATION BONDS CIVIC CENTER DECEMBER 31 , 1978 Year Principal Interest Total 1979 $ 30,000 $ 8,500.00 $ 38,500.00 1980 30,000 7,480.00 37,480.00 �•-y 1981 30,000 6,460.00 36,460.00 / 1982 30,000 5,425.00 35,425.00 1983 35,000 4,287.50 39,287.50 1984 35,000 3,062.50 38,062.50 f 1985 35,000 1 ,837.50 36,837.50 =- 1986 35,000 612.50 35,612.50 $260,000 $37,665.00 $297,665.00 Ti 71 71 ' I 11 Ti n ►1 -76- 1.1 P. TABLE 11 ., ' I r, I CITY OF FRIDLEY, MINNESOTA DEBT SERVICE REQUIREMENTS - PERMANENT BONDS SPECIAL ASSESSMENT FUNDS 1 DECEMBER 31 , 1978 7 Year Principal Interest Total 1979 $ 385,000 $ 150,638.03 $ 535,638.03 '1 1980 753,035 198,513.22 951 ,548.22 1 1981 657,250 167,529.77 824,779.77 1982 662,500 137,842.57 800,342.57 7`') 1983 500,000 111 ,122.50 611 ,122.50 I 1984 415,000 89,545.00 504,545.00 1985 355,000 71 ,122.50 426,122.50 1986 305,000 55,166.25 360,166.25 '7 1987 290,000 40,415.00 330,415.00 1988 215,000 27,450.00 242,450.00 1989 135,000 18,250.00 153,250.00 1990 75,000 12,637.50 87,637.50 1 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 7 1994 50,000 1 ,325.00 51 ,325.00 $4,947,785 $1 ,101 ,419.84 $6,049,204.84 7 7 ., i ; , r. V .. -77- TABLE 12 rl r• r 71 II r, CITY OF FRIDLEY, MINNESOTA 71 DEBT SERVICE REQUIREMENTS - TEMPORARY BONDS SPECIAL ASSESSMENT FUNDS fl DECEMBER 31 , 1978 • n Year Principal Interest Total H 1979 $ -0- $38,150.00 $ 38,150.00 1980 25,000 38,150.00 63,150.00 (-7 1981 520,000 18,900.00 538,900.00 $545,000 $95,200.00 $640,200.00 r 7I 71 n 11 7I J -78- TABLE 13 P4 r. •, CITY OF FRIDLEY, MINNESOTA ^ DEBT SERVICE REQUIREMENTS PUBLIC UTILITY REVENUE & WATER IMPROVEMENT BONDS DECEMBER 31 , 1978 Year Principal Interest Total 1979 $ 50,000 $19,861 .50 $ 69,861 .50 1980 106,965 20,956.79 127,921 .79 1981 107,750 16,065.23 123,815.23 1982 97,500 11 ,544.93 109,044.93 l 1983 50,000 8,575.00 58,575.00 1984 50,000 6,825.00 56,825.00 1985 50,000 5,075.00 55,075.00 ►� 1986 50,000 3,325.00 53,325.00 1987 50,000 1 ,575.00 51 ,575.00 1988 20,000 350.00 20,350.00 $632,215 $94,153.45 $726,368.45 n rT V rR -79- TABLE 14 fl I n CITY OF FRIDLEY, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN DECEMBER 31 , 1978 71 Assessed Value $163,331 .036* 71 (A) Debt Limit 6.667 Percent of Assessed Value $10,889,280 Amount of Debt Applicable to Debt Limit: 71 Total Bonded Debt $ 6,385,000 (B) Deductions: 71 General Debt Service Fund Assets $ 60,071 Special Assessment Bonds 5,492,785 Water Revenue & Improvement Bonds 632,215 6,185,071 Total Amount of Debt Applicable to Debt 199,929 Limit rl Legal Debt Margin $10,689,351 I *Includes $7,376,217 negative adjustment from "Fiscal Disparity" area wide tax base. 71 Note: (A) M.S.A. Section 475.53 (see following page) Note: (B) M.S.A. Section 475.51 (see following page) 71 n it I 71 11 -80- J Fl TABLE 14 Continued CITY OF FRIDLEY, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN (CONTINUED) DECEMBER 31 , 1978 Note (A): M.S.A. Section 475.53 et seq. Limit on Net Debt "Subdivision 1 . Generally. Except as otherwise provided in section 475.51 , no municipality, except a school district or a city of the first class, shall incur or be subject to a r% net debt in excess of 6.67 percent of the assessed value." Note (B) : ,, M.S.A. Section 475.51 Definitions "Subdivision 4. 'Net Debt" means the amount remaining after deducting from its gross debt the amount of current revenues ^ which are applicable within the current fiscal year to the payment of any debt, and the aggregate of the principal of the following: , '; j (1 ) Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially benefited thereby, including those which are general obligations of the municipality issuing them, if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments. PR (2) Warrants or orders having no definite or fixed maturity. ,.? (3) Obligations payable wholly from the income from revenue producing conveniences. (4) Obligations issued to create or maintain a permanent improvement revolving fund. (5) Obligations issued for the acquisition, and betterment of public waterworks systems, and public lighting, heating or power systems, and of any combination thereof or for any other public convenience from which a revenue is or may be derived. (6) Debt service loans and capital loans made to a school district under the providions of sections 124.42 and 124.43. (7) Amount of all money and the face value of all securities held as a debt service fund for the extinguishment of obligations other than those deductible under this subdivision. r• (8) All other obligations which under the provisions of law authorizing their issuance are not to be included in computing n the net debt of the municipality. " 1 . PR ✓ -81- II ' I �1 CITY OF FRIDLEY, MINNESOTA PROPERTY TAX RATES PER $1 ,000 OF ASSESSED VALUE AND TAX LEVIES ALL OVERLAPPING GOVERNMENTS YEARS 1970 THROUGH 1979 fl TAX RATES n School School School School District District District District en Year City No. 11 No. 13 No. 14 No. 16 County 11 1970 45.30 Mills 297.66 Mills 209.33 Mills 287.42 Mills 247.72 Mills 68.99 Mills ., 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 " 29.49 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 " 1977 14.78 " 58.40 47.26 54.65 63.62* " 22.21 „ 1978 15.05 55.84 46.53 54.26 61 .68* " 24.40 1979 15.06 47.71 45.04 47.17 62.25* 24.29 *Vocational/Technical District No. 916 included in District No. 16. �^ This table reflects the new method of determining assessed valuations as required by 1971 Legislation. This change results in an assessed valuation of approximately n 35% of market value instead of approximately 11% under the previous formula. TAX LEVIES 'l ; I 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 it 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 j 1976 1 ,855,229 300,800 1 ,403,823 3,537,777 1 ,698,993* 2,785,357 1977 2,057,083 360,242 1 ,499,855 3,863,402 1 ,948,613* 3,092,238 n 1978 2,199,318 355,565 1 ,568,135 3,987,358 2,017,736* 3,569,286 it 1979 2,348,124 330,743 1 ,634,858 3,668,695 2,204,204* 3,788,253 *Includes Vocational/Technical District No. 916. n -82- 1 n TABLE 15 1 ► L.\ ...I ' 1 n ii r`, TOTALS Special School School School School Districts District District District District Total No. 11 No. 13 No. 14 No. 16 3.34 Mills 415.29 Mills 326.96 Mills 405.05 Mills 365.35 Mills n 2.87 369.92 323.91 " 385.94 " 330.26 " : I 5.60 292.45 281 .43 279.04 291 .64 2.38** 91 .37 86.24 89.04 92.87 2.89** " 90.96 ii 89.81 91 .36 90.76 " pl 4.77** " 101 .86 95.99 102.20 " 107.92 " , 1 3.23** " 95.06 89.31 95.33 " 101 .75 " 3.43** " 98.52 " 87.68 " 95.07 " 104.04 " 7" 3.14** " 98.14 89.12 96.85 104.27 " 1 3.35** 89.80 87.73 89.87 " 104.95 " ,al **No Water Shed District in School District No. 11 . n i Yearly Total Total Local Percentage Net Loss to Tax ^ Tax Levies Increase Metro Pool Levies $ 74,934 $ 8,440,955 22% 79,236 9,867,472 17% 1 rl 161 ,290 8,167,677 -21% Ii 204,380 8,544,576 5% 297,343 9,750,928 14% rl 520,369 11 ,384,383 17% 380,806 11 ,962,785 5% 454,078 13,275,511 11% �+ 426,450 14,123,848 6% , I 470,367 14,445,243 2% $922,702 $15,367,945 r ii 1 i -83- TABLE 16 fl CITY OF FRIDLEY COMPUTATION OF DIRECT AND OVERLAPPING rri BONDED DEBT AND COMPARATIVE DEBT RATIOS DECEMBER 31 , 1978 i % of Debt Net Debt Gross Sinking Net Applicable Applicable Governmental Unit Debt Funds Debt to City to City '� Direct & Overlapping Debt ' ' Direct Debt: it City of Fridley $ 6,385,000 $ 4,684,489 $ 1 ,700,511 100% $ 1 ,700,511 — Overlapping Debt: 7 School Districts No. 11 $ 33,725,000* $ 3,872,648 $29,852,352 1 .839 $ 548,985 No. 13 5,160,000* 1 ,419,120 3,740,880 32.005 1 ,197,269 7 No. 14 4,801 ,745* 897,035 3,904,710 100.000 3,904,710 II No. 16 8,086,667* 1 ,636,760 6,449,907 45.341 2,924,452 Metro Transit $ 11 ,400,000 $ 2,320,980 $ 9,079,020 1 .827 $ 165,874 j1 Metro Council $ 34,350,000 $21 ,174,220 $13,175,780 1 .693 $ 223,066 Anoka County $ 625,000 $ 182,550 $ 442,450 23.205 $ 102,671 ! 1 Vocational/Technical District No. 916 $ 7,420,000 $ 721 ,983 $ 6,698,017 2.951 $ 197,6 i Total Overlapping Debt $105,568,412 $32,225,296 $73,343,116 $ 9,264,685 fl Total Direct and Overlapping Debt $111 ,953,412 $36. 909,785 $75,043,627 $10,965,196 fl Direct Overlapping fl Total Debt Debt Ratio of Net Debt to Taxable Value 1 :14.22 1 :91 .71 1 :16.83 7 Percent of Net Debt to Taxable Value 7.03% 1 .09% 5.94% Ratio of Net Debt to Market Value 1 :44.87 1 :289.34 1 :53.11 Percent of Net Debt to Market Value 2.23% 0.35% 1 .88% �1 I_ Per Capita Debt $327.80 $ 50.83 $276.97 The above debt excludes the City's share of debt applicable to the Metropolitan Council , it Metropolitan Waste Control Commission, the Metropolitan Airport Commission and the North Suburban Hospital District which is paid from users' fees. *Does not include State loans. 11 ,1 -84- 7 .. TABLE 17 if n t., ' i i CITY OF FRIDLEY, MINNESOTA r‘ RATIO OF ANNUAL DEBT SERVICE EXPENDITURES i FOR GENERAL BONDED DEBT TO TOTAL GENERAL ' ` GOVERNMENT EXPENDITURES YEARS 1969 THROUGH 1978 n it Total Total Ratio of Debt Fiscal Debt General Service to 71 Year Principal Interest Service Expenditures General Expenditures 1969 $60,000 $47,895 $107,895 $1 ,416,795 .0762 : 1 1I 1970 60,000 45,975 105,975 1 ,687,787 .0628 : 1 7‘") 1971 90,000 48,495 138,495 1 ,846,757 .0750 : 1 1972 60,000 23,520 83,520 1 ,953,180 .0428 : 1 7 1973 65,000 14,620 79,620 2,341 ,081 .0340 : 1 1974 25,000 12,685 37,685 2,520,672 .0150 : 1 ri 1975 25,000 11 ,885 36,885 2,899,724 .0127 : 1 71 1976 25,000 11 ,073 36,073 3,281 ,818 .0110 : 1 1977 25,000 10,247 35,247 3,601 ,933 .0098 : 1 jf 1978 25,000 9,422 34,422 3,971 ,816 .0087 : 1 t" I i � .. I i -85- r1 TABLE 18 1 ( , I n CITY OF FRIDLEY, MINNESOTA RATIO OF NET BONDED DEBT TO PROPERTY VALUES AND NET BONDED DEBT PER CAPITA (EARS 1969 THROUGH 1978 Net Ratio of Net Net Bonded, Fiscal Taxable Gross Less Debt Bonded Bonded Debt to Debt Per Year Population Value Bonded Debt Service Funds Debt Assessed Value Capita ' 1969 28,235 $ 20,683,328 $9,589,000 $3,712,201 $5,876,799 .2841 :1 $208 77 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 20(7 1972 30,240 28,801 ,865 9,756,000 3,870,814 5,885,186 .2043:1 194 1973 31 ,143 95,588,238 9,852,000 3,801 ,883 6,050,117 .0633:1 194 1974 32,542 107,465,059 8,885,000 3,010,682 5,874,318 .0547:1 181 fl 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 1977 31 ,940 139,227,266 6,775,000 4,209,680 2,565,320 .0184:1 80 1978 33,450 146,282,224 6,385,000 4,684,489 1 ,700,511 .0162:1 51 n 11 -86- ► I TABLE 19 •-► CITY OF FRIDLEY, MINNESOTA II I � INSURANCE COVERAGE 1'1 DECEMBER 31 , 1978 All risk, direct physical loss coverage F.% Building and contents (.except liquor stock) - 90% Co-insurance $5,888,901 Boiler insurance 500,000 Contractor's equipment 429,292 Signs 16,148 7 ' ' All risk, fire and extended coverage - liquor stores and stock 193,000 ^ Comprehensive liability Bodily injury Each person 500,000 ., Each occurrence 500,000 " II Property damage 100,000 Liquor liability 300,000/500,000 i Excess liability 1 ,000,000 ^ Automobile Liability 250,000/500,000 Comprehensive and collision .., Passenger vehicles Actual cash value Other vehicles Stated value Business interruption, liquor stores 141 ,000 7 Money and securities, inside and outside premises, all locations 15,000 n ; I Workers' compensation Statutory 71 Errors and ommission insurance 1 ,000,000 PRINCIPAL OFFICIALS ANNUAL SALARIES AND SURETY BONDS DECEMBER 31 , 1978 rii Surety Name Position Salary Bond Nasim M. Qureshi City Manager $37,250 $50,000 Virgil C. Herrick City Attorney 15,600** None* Marvin C. Brunsell City Clerk 27,750 1 ,000 P. Marvin C. Brunsell Treasurer 27,750 50,000 ( Richard N. Sobiech Public Works Director 28,500 None* James P. Hill Public Safety Director 28,150 None* Vacant Fire Chief 23,250 None* Charles A. Boudreau Parks and Recreation Director 24,500 None* *Afl employees are covered by a blanket faithful performance bond of $100,000. **Covers first thirty hours per month of basic service, balance billed at $40 per hour. 7 -87- TABLE 20 CITY CAPITAL IMPROVEMENT FINANCING POLICY The policy of the City of Fridley regarding financing of major capital ry improvements is as follows: n STREET, CURB AND GUTTER, SIDEWALK AND STORM SEWER IMPROVEMENTS: It is the policy of the City to assess 100% of the cost of street surfacing, curb and gutter improvements and storm sewer improvements against benefited properties, less aid for construction received from the State of Minnesota. Properties owned by the City, the school districts, or other tax exempt n organizations are treated in the same manner and assessed at the same rate �, ) as taxable properties. WATER AND SEWER IMPROVEMENTS: 71 Water and sewer lateral improvements are 100% assessed against benefited properties. Properties owned by tax exempt organizations are treated the il same as taxable properties. The water and sewer main system has been substantially assessed against benefited properties. An exception to the above policy has been the cost of looping certain water system main lines Fl which benefited no particular properties. This unassessed portion of the I improvement cost is being financed by the Public Utility Fund. WELLS, RESERVOIRS, PUMPING STATIONS, ETC. : fl i These improvements have been financed from the income of the Public Utility Fund. rrl 1 ACQUISITION OF PARK LAND, CIVIC CENTER, ETC. : It is the policy of the City to finance small park capital improvements out n of the current General Fund operating budget. It is the policy of the City to finance major park capital improvements, such as the purchase of large parcels of land, with general obligation bonds. The City currently has one fl general obligation bond issue outstanding. This is for the Civic Center. The balance outstanding for this issue on December 31 , 1978 was $260,000. OTHER CAPITAL IMPROVEMENTS: . T1 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 ! 1 operating budget. In order to even out the amount budgeted annually for such items, the City started a Capital Improvement Revolving Fund in 1976. The balance in this fund on December 31 , 1978 was $193,367.71 . The purpose of the Fl fund is to finance capital outlay items normally financed through the General Fund. No purchases have been made through this fund to date. fl REVENUE SHARING: In past years, it was the policy of the City to use Revenue Sharing funds primarily for capital outlay items. For the year 1978, approximately 25% of rl ' the Revenue Sharing funds were budgeted for personal services. All of the n Anti-Recession funds were budgeted for personal ser ices. The General Fund is used as the vehicle for budgeting and expenditu of Revenue Sharing monies. -88- 7 TABLE 21 CITY OF FRIDLEY, MINNESOTA PR L MISCELLANEOUS STATISTICAL INFORMATION Date of Incorporation (Village of Fridley) July 1 , 1949 Date of Adoption of City Charter September 10; 1957 effective ^ September 25, 1957 Form of Government Council/Manager n Fiscal Year Begins January 1 p4 Area of City 11 Square Miles Bond Rating Aa ^ Miles of Streets & Sidewalks (Including State & County) City Streets 96.7 Trunk Highways 10.8 ml County Roads 16.0 Sidewalks 9.0 Miles of Sewer Storm 36.6 ' I Sanitary 97.5 r"`� Miles of Water Mains 101 .1 Fire Protection PR Number of Stations 1 Volunteer Firemen 34 Full-time Firemen 5 Fire Rating Class 5 , t Police Protection Number of Stations 1 71 Number of Sworn Officers 32 ^ BUILDING PERMITS I Residential Multiple Commercial/ Year No. Value Dwellings Industrial All Other Total ., 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 .4 1972 418 11 ,270,165 9,501 ,531 4,780,947 2,408,115 27,960,758 1 1973 99 2,507,865 -0- 4,482,184 630,014 7 ,620,063 1974 115 3,025,142 -0- 4,353,649 3,811 ,271 11 ,191 ,062 1975 109 3,845,673 175,850 4,683,913 1 ,337,616 10,043,052 n 1976 179 6,786,840 -0- 6,303,847 1 ,164,862 14,255,549 1 1977 223 8,805,695 5,170,196 5,596,312 3,271 ,108 22,843,311 1978 92 4,188,131 425,208 5,24j,268 1 ,532,535 11 ,393,142 r, I -89- n TABLE 21 Continued i CITY OF FRIDLEY, MINNESOTA r MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED) r I I it Number of Street Lights 876 Number of Traffic Signal Installations 27 fl Number of Other Special Signal Installations 1 Number of Civil Defense Warning Sirens 8 ; i Permanent Employees--As of December 31 , a' il -Number 1969 104 1 1970 115 1971 105 1972 109 fl 1973 118 1974 123 1975 130* 1976 129* 7 1977 148* ' 1978 141* N ?1 rri Elections Registered Voters--Last General Election (1978) 14,405 n Number of Votes Cast Last General Election (1978) 11 ,143 it Percent (%) Voting Population 3,796 1950 Federal Census T1 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 El 1975 Estimated by Metropolitan Council 32,486 1976 Estimated by Metropolitan Council 31 ,570 1977 Estimated by Metropolitan Council 31 ,940 j 1978 Estimated by Metropolitan Council 33,450 (575 ' , 3R, 66y *Includes CETA 1 fl (-. 11 -90- 7 r ii TABLE 21 Continued r" CITY OF FRIDLEY, MINNESOTA MISCELLANEOUS STATISTICAL INFORMATION (CONTINUED) Parks and Recreation Areas Developed 395 Acres Undeveloped 125 Acres n Total 52Q Acres 1I City Parks Schools Total H i Number of: Hockey Rinks 9 2 11 r, General Skating Rinks 18 3 21 I Playgrounds 10 9 19 Swimming Beaches 1 0 1 Swimming Pools 0 1 1 7 Wading Pools 0 0 0 , I Picnic Grounds 1 0 1 Day Camp Sites 1 0 1 71 Baseball Diamonds 1 5 6 Softball Diamonds 16 16 32 Outdoor Basketball Courts 19 13 32 Tennis Courts 22 17 39 7 Horseshoe Courts 9 0 9 11 Archery Ranges 1 0 1 Permanent Playground Buildings 0 0 0 r`-, Permanent Picnic Shelters 8 0 8 Soccer Fields 1 0 1 Football Fields 1 9 10 n Municipal Water System Source Primary Source City of Fridley Water Plant (Wells)--Capacity of 15 ri Million Gallons Per Day Secondary Source City of Minneapolis n . (Mississippi River)--35 1 Million Gallons Per Day Number of Connections December 31 , 1978 7,377 Connections 4.1 Million Gallons 15 Million Gallons 1 ,005 I Municipal Sewer System Disposal--Through Metropolitan Waste Control 7 Commission Number of Connections 7,308 Average Daily Flow (Includes Infiltration/Inflow) 3.64 Million Gallons Pq it 1 / PR -91- r" TABLE 22 f , r CITY OF FRIDLEY, MINNESOTA ri■, GENERAL INFORMATION ! ! n LOCATION - TRANSPORTATION 1 ! The City of Fridley, with a total land area of eleven square miles and an estimated population of 33,450, is located at the north boundary of Minneapolis and Columbia ri Heights, about eight miles from the Minneapolis central business district. Freight service is provided the area by local and interstate truck lines and the Burlington Northern Railroad, and transportation is available through Metropolitan Transit Commission facilities. Highways serving Fridley include Interstate #694 (beltline li around the metropolitan area) and State Highways #65 and #47. Commercial airline service is available at Minneapolis-St. Paul International Airport, approximately r, twenty-five miles south, and private business aviation facilities are available at ' I the Anoka County and Crystal Airports, both operated by the Metropolitan Airports Commission. r, I LARGER EMPLOYERS fl Larger employers in the City include: No. of Employer Product or Service Employees FMC Corporation Pumps and naval ordnance 3,600 Onan Corporation Portable generators, electronic 1 ,800 i equipment ! ' Medtronics, Inc. Electro-medical devices 1 ,450 Burlington Northern Railroad Northtown Yard 1 ,043 r Unity Hospital Medical services 1 ,000 Target Stores & Warehouse Discount store & warehouse 750 Totino's Finer Foods Frozen foods 403 Independent School District #14 Fridley School District 325 rl LaMaur, Inc. Cosmetics 300 • Minco Products, Inc. Electronic devices 260 Kurt Manufacturing Machine parts 254 Barry Blower Company Air moving devices 240 Safetran Systems Corporation Railroad accessories 240 Midland Cooperatives Warehousing and oil blending 226 r, plant Carter-Day Company Air control equipment 215 Holiday Village North Discount department store 200 Holly Shopping Center Retail and service establishments 200 Strite-Anderson Manufacturing Aluminum die castings 175 it i �' 11 -92- I I I ! TABLE 22 Continued 7 CITY OF FRIDLEY, MINNESOTA � GENERAL INFORMATION (CONTINUED) r+ LIMITED MARKET VALUE Fifteen of the largest taxpayers include: r+ ii -1978 Payable 1979 Value ' 1 Market Rank Taxpayer Business Value ., 1 . FMC Corporation Naval ordinance $14,042,800 2. Onan Corporation Portable electric generators 13,622,200 3. Medtronics, Inc. Electro-medical devices 13,301 ,700 4. Target Stores Discount store & Warehouse 8,582,400 5. Maurice Fillister Georgetown Apartments 6,740,200 6. LaMaur, Inc. Cosmetics 5,392,900 7. Five Sands Development Meadowrun Apartments 4,159,400 8. Midland Cooperatives Warehousing & oil blending 4,147,800 1 9. Holiday Village Discount department store 3,771 ,700 10. Honeymead Lindseed oil & grain products 3,604,600 n 11 . Carter-Day Air control equipment 3,447,700 12. Totino's Finer Foods Frozen foods 3,424,000 13. Black Forest Apartments Apartments 3,352,300 14. Rice Creek Townhouses Townhouses 3,250,000 f 15. Longview Fiber Corrugated boxes 2,214,600 Of the City's total assessed value, approximately 61% is residential (including ^ apartments, mobile home parks and nursing homes) and 39% commercial , industrial and utility property. n FINANCIAL SERVICES The Fridley state Bank has had deposits as follows as of December 31 each year: 1974 $11 ,002,894 1975 12,759,779 1976 13,898,431 1977 16,585,000 1978 18,032,565 pm I Twin City Federal Savings and Loan Association, Minneapolis, has one of its branch offices in Fridley. pm I MEDICAL FACILITIES Medical facilities in Fridley include Unity Hospital , a 275 bed hospital with an adjacent clinic (Unity Professional Building) , the Fridley Medical Center, which recently completed a $350,000 wing, and two nursing homes, Lynwood Manor and Fridley Convalescent and Nursing Home. F -93- TABLE 22 Continued CITY OF FRIDLEY, MINNESOTA GENERAL INFORMATION (CONTINUED) EDUCATION Fridley is served by four school districts, the major portion being within Independent School District No. 14 (Fridley) . The Fridley School District operates fl three elementary schools, a junior high and a senior high school , employing 245 - certified personnel and 80 additional employees in the education of about 4,188 students. Grace Parochial High School has an enrollment of 1 ,014. Portions of r' the Columbia Heights School District (13) , the Spring Lake Park School District � i (16) and Anoka/Hennepin School District (11 ) also lie within the City of Fridley. They have an enrollment of students living within the City of Fridley of 2,913. I Colleges and universities, vocational-technical and specialized training schools are located throughout the metropolitan area within easy commuting distances of Fridley. fl n 11 n n n fl I1 -94- n August 16, 1979 Arthur Hillman Office of the State Auditor. Municipal Reporting Unit Veterans Service Building Saint Paul, MN 55155 Dear Mr.- Hillman: Attached is the information you requested. - eeN If I may be of further service Please feel free to call Sincerely yours, • Sid Ian Accounts and Budger Officer c.c M.C.B. sar. n 1 SPECIAL ASSESSMENT CONSTRUCTION A) Changes bon senv.icea - $13,695. This en L' a amount nece.ived bnom citizens bon 4pecia2 curb nemova2 and p t'acemen t. B) Othen - $52,939 $142 Rei.mbmaed on pnaject SW - 123 $27,651 Budgeted and expended in Fund 01 bon 1978 ST $2,202 Budgeted and expended .in Fund 01 bon 1978 ST $20,350 Budgeted and expended in Fund 01 bon butute pno1 ects bon 1978 ST $503 Skeet Sweeping changes 1978 ST $183 C.E.T.A. Re.imbunsement 1978 ST $1,908 Ethninat on ob payabte3 not used in 1971 ST to cto4a out pnoject $ 52, 939 SPECIAL SPECIAL SPECIAL ASSESSMENTS ASSESSMENTS ASSESSMENTS II TRANSFERS IN CONSTRUCTION DEPT SERVICE REVOLVING A) From S.A.0 to cover prior years deficit in curb removal 1;190_ 3) From 1978 ST. to 1978 Bonds -interest 17,500 From 125 SW to 125 SW Bonds (Close out) 339 D) From Utility Fund to 1963 Bonds 868 E) From 1971 ST. to 1972 Bonds (Close out) F) From Revolving fund to 1964 Refunding Bonds 36,742 3) From Utility Fund to 1964 Refunding Bonds 12,088 -I) From State Aid Fund to 1977 Bonds 1,148 I) From SW 177 to 1977 Bonds (Close out) 71 ]) From SW 119 to 1977 Bonds (Close out) 24 K) From State Aid to 1978S 228,936 _)' rom 1977 Bonds to 1976S to cover defecits 38,022 266,958 72,487 1,190 SPECIAL SPECIAL • SPECIAL ASSESSMENTS ASSESSMENTS ASSESSMENTS III 'TRANSFERS OUT CONSTRUCTION DEPT SERVICE REVOLVING `A)/SEE II - A 1, 190 ' 8) SEE II - 8 17,500 ' C) SEE II - C 339 D) SEE II - E 3,707 E) SEE II - I 71 F) SEE II - J 24 G) SEE II - K 38,022 H) Parom Geneut Fund to Capi tate Impnavement Fund 30,000 1) SEE II - F 36,742 • 22,831 68,022 36,742 IV CONSTRUCTION COSTS Suet Waken/Sewer SW 119 30 SW 118 61 SW 117 321 SW 124 464 SW 60 19,670 SW 126 208 SW 107 1,311 1978 ST 139,900 1978 ST 14,255 1915 ST 12,508 1976 ST 6,237 1971 ST 8,502 781,402 22,065