2014 CAFR
CITY OF FRIDLEY, MINNESOTA
Comprehensive Annual Financial Report
December 31, 2014
Prepared by:
Finance Department
Darin R. Nelson
Finance Director
This page intentionally left blank
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2014
TABLE OF CONTENTS
EXHIBITPAGE
I. INTRODUCTORY SECTION
Letter of Transmittal3
Certificate of Achievement 11
Elected and Appointed Officials13
City Administrative Organizational Structure 201414
II. FINANCIAL SECTION
Independent Auditor's Report19
Management's Discussion and Analysis23
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net PositionA-137
Statement of ActivitiesA-238
Fund Financial Statements:
Balance Sheet - Governmental FundsA-340
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental FundsA-442
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of ActivitiesA-545
Statement of Net Position - Proprietary FundsA-646
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary FundsA-748
Statement of Cash Flows - Proprietary FundsA-850
Statement of Fiduciary Net PositionA-952
Notes to Financial Statements53
Required Supplementary Information:
Budgetary Comparison Schedule - General FundB-190
Budgetary Comparison Schedule - Note to RSI95
Schedule of Funding Progress - Retiree Health Plan96
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental FundsC-1101
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental FundsC-2102
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2014
TABLE OF CONTENTS
EXHIBITPAGE
Subcombining Balance Sheet - Nonmajor Special Revenue FundsC-3104
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue FundsC-4106
Subcombining Balance Sheet - Nonmajor Capital Project FundsC-5110
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Capital Project FundsC-6112
Special Revenue Funds:
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual:
D-1116
Cable TV Fund
Springbrook Nature Center FundD-2117
Grant Management FundD-3118
Solid Waste Abatement FundD-4119
Internal Service Funds:
Combining Statement of Net PositionE-1122
Combining Statement of Revenues, Expenses and Changes in Net PositionE-2123
Combining Statement of Cash FlowsE-3124
Housing and Redevelopment Authority (Component Unit):
Balance Sheet - Governmental FundsF-1126
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental FundsF-2128
Subcombining Balance Sheet - Nonmajor Capital Project FundsF-3130
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Capital Project FundsF-4132
Agency Funds:
Statement of Changes in Assets and LiabilitiesG-1136
CITY OF FRIDLEY, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2014
TABLE OF CONTENTS
EXHIBITPAGE
III. STATISTICAL SECTION (Unaudited)
Financial Trends:
Net Position by ComponentTable 1138
Changes in Net PositionTable 2140
Fund Balances - Governmental FundsTable 3144
Changes in Fund Balances - Governmental FundsTable 4146
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of Taxable PropertyTable 5148
Direct and Overlapping Property Tax Capacity RatesTable 6150
Principal Property TaxpayersTable 7152
Debt Capacity:
Property Tax Levies and CollectionsTable 8153
Ratios of Outstanding Debt by TypeTable 9154
Direct and Overlapping Govermental Activities DebtTable 10155
Legal Debt Margin InformationTable 11157
Pledged Revenue CoverageTable 12158
Demographic and Economic:
Demographic and Economic StatisticsTable 13160
Principal EmployersTable 14161
Full-Time Equivalent City Government Employees by Function/ProgramTable 15162
Operating Information:
Operating Indicators by Function/ProgramTable 16164
Capital Asset Statistics by Function/ProgramTable 17166
This page intentionally left blank
I. INTRODUCTORY SECTION
This page intentionally left blank
City of Fridley, 6431 University Avenue NE, Fridley, MN 55432
Finance Department • 763-571-3450 • Fax 763-571-1287 • www.FridleyMN.gov
May 18, 2015
To the Citizens of the City of Fridley,
Mayor, Council Members, and City Manager
The Comprehensive Annual Financial Report of the City of Fridley, Minnesota, for the
fiscal year ended December 31, 2014, is submitted herewith:
Responsibility for both the accuracy of the presented data and the completeness and
fairness of the presentation, including all disclosures, rests with the City. We believe that
the data, as presented, is accurate in all material aspects, that it is presented in a manner
designed to fairly set forth the financial position and results of operations of the City as
measured by the financial activity of its various funds, and that all disclosures necessary
to enable the reader to gain the maximum understanding of the City’s financial activity
have been included.
Generally accepted accounting principles require that management provide a narrative
introduction, overview, and analysis to accompany the basic financial statements in the
form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is
designed to complement the MD&A and should be read in conjunction with it. The City
of Fridley’s MD&A can be found immediately following the report of the independent
auditors.
All City funds, departments, commissions and other organizations for which the City of
Fridley is financially accountable are presented within the Comprehensive Annual
Financial Report. The City provides a full range of services to its citizens. These services
include, but are not limited to, police and fire protection; water and sanitary sewer
utilities; the construction and maintenance of streets and infrastructure; recreational
facilities; and general administrative services. The Housing and Redevelopment
Authority (HRA) is included in the reporting entity as a component unit of the City,
because the governing board is appointed by the City Council, and because of the City’s
relationship of financial benefit or burden with the authority.
The organization, form and contents of this report were prepared in accordance with the
standards prescribed by the Governmental Accounting Standards Board (GASB), the
Government Finance Officers Association of the United States and Canada (GFOA), the
American Institute of Certified Public Accountants, the Minnesota Office of the State
Auditor, and the City Charter.
CITY OF FRIDLEY, MINNESOTA
ECONOMIC CONDITION AND OUTLOOK
BACKGROUND AND LOCATION
The City of Fridley is a first ring suburban community with an estimated 2013 population
of 27,865. The City is located 10 minutes north of downtown Minneapolis and 25
minutes northwest of downtown St. Paul. Incorporated in July of 1949, Fridley covers 10
square miles of area and is now home to some of the most important industries in the
Midwest, nation, and the world. An industrial spine around the rail corridor has served
the City well and has provided the city with nearly as many jobs as the number of citizens
who reside in the community. Fridley is home to the largest number of employees in
Anoka County.
LOCAL ECONOMY
The local economy is showing signs of steady improvement over the past year. New
construction and renovation continues to gain traction as activity has steadily increased
over the past few years, unemployment numbers have improved, and property values
appear to have bottomed out and have rebounded with double digit increases over the
past year.
New construction continued to remain solid with construction valued at approximately
$47.1 million for 2014. This is about $6.5 million more than 2013. The major projects
for 2014 included; Phase 1 of Northern Stacks office warehouse space valued at $9.7
million, General Mills Oats building at $4 million, a new CAT scan room and birthing
center at Unity Hospital valued at $1.6 million. In addition, Duluth Trading Company
and Banquets of Minnesota joined our community by converting previously vacant space
and investing $1.2 million in improvements combined. Continued long-term growth is
anticipated as Fridley continues to aggressively pursue redevelopment opportunities. The
estimated market value for all properties in Fridley increased 10% from January 1, 2014
to January 1, 2015. This increase in valuation is consistent with other municipalities in
the Minneapolis-St. Paul metropolitan area.
MAJOR INITIATIVES
For the Year
2014 continued with its fast pace of city initiated projects along with the partnering with
developers to bring substantial redevelopment projects to fruition. Current projects
include:
CITY OF FRIDLEY, MINNESOTA
ECONOMIC CONDITION AND OUTLOOK (CONTINUED)
1.The Street Program continued the on-going efforts of resurfacing city streets. The
2014 Street Program included Main Street and Commerce Lane. The final cost of this
project was approximately $1.2 million.
2.The City entered its fourth year of a ten to twelve year campaign to replace the City’s
approximately 7,500 manual read water meters with automatic meter reading water
meters. Public Works staff is undertaking the change-out in house, which saves
contractual costs and allows the city to more easily budget for new meters on an
annual basis rather than a large one-time purchase. Annual expenditure for the
purchase of new water meters is estimated to cost $125,000 per year with an average
of 600 meters changed out per year. In 2014, over 900 meters were replaced, which
at the current pace will reduce the length of the project from twelve to ten years.
3.The HRA actively worked on a number of redevelopment projects in 2014. In May,
ground was broken on the first 215,000 sq. ft. of the Northern Stacks industrial
redevelopment. In October the Authority purchased the former Columbia Arena for
future redevelopment efforts. In November, a ground breaking was held for the Cielo
apartment redevelopment project. This project will eventually contain 254 apartment
units in 3 separate buildings. Additionally, the Authority sold 7 single family lots to
home builders.
4.During the 2014 State Legislative session, the City of Fridley was awarded five
million dollars of state bonding funds to build a new interpretive center at the
Springbrook Nature Center. For over a decade the City and the non-profit
Springbrook Nature Center Foundation have worked to create and implement the
S.P.R.I.N.G (Sanctuary Protection and Renewal Into Next Generation) Project. This
is a comprehensive plan to revitalize the seven acre park entrance and interpretive
center at the nature center and will allow the site to expand its programming, host
weddings and events, and continue to provide world class environmental education to
an ever-growing audience. Groundbreaking for the new interpretive center is
scheduled for May 2015.
5.The City also entered into a contract with Tyler Technologies to replace the City’s
current financial system that has been in place for close to twenty-five years. The
new system will replace both the financial and utility billing systems. Go-live dates
are anticipated for the third quarter of 2015.
For the Future
As Fridley becomes a fully developed community with a stable population, the ability to
maintain, improve, or expand the types of services provided to our residents continues to
evolve and present new challenges. The 2015 budget reflects the changes necessitated by
the City’s maturity, current and future fiscal restraints, and it attempts to respond to
market pressure and citizen-driven requests through certain innovative but fiscally sound
CITY OF FRIDLEY, MINNESOTA
ECONOMIC CONDITION AND OUTLOOK (CONTINUED)
public service policies. One such example is an initiative to increase the beautification of
the City’s parks and certain causeways in an effort to build additional community pride
for our City and its amenities. Additional seasonal park maintenance employees were
hired to assist in reaching this objective. This effort did add additional operating
expenditures in the form of labor and equipment operating costs, but were manageable
within the scope of the entire departmental budget.
The City continues to monitor operational expenditures to achieve cost savings without
negatively impacting service levels. As an example, an extensive analysis was completed
in 2014 to ensure our three utilities (water, sewer, and storm water) are financially
independent and fully supporting each specific operation. The study involved analyzing
the activities of certain groups of employees on a daily basis and comparing those duties
to where their actual labor costs are being charged. The conclusion was that the Storm
Water Fund was relying heavily on public works and engineering staff from both the
General Fund and Sewer Utility Fund.
Starting with the 2015 budget, labor distribution will reflect actual labor costs within all
funds. This change ensures all our enterprise funds (utilities) are self-sufficient and are
not being supported by outside resources, most notably the City’s General Fund. The
General Fund has Charter imposed constraints that other funds do not. Most notably, any
levy increase is limited to the CPI of the prior year or five percent whichever is least.
Given this constraint, it’s imperative that the General Fund not be supporting other funds
to ensure the greatest flexibility in continuing service delivery and maximizing
efficiencies. This reallocation of labor has allowed the General Fund to rehire a police
officer that had been frozen a few years ago due to budget constraints.
In the area of capital equipment, the City has taken a strategic approach to the planning
and acquisition of equipment. Funding sources are designed not to impact the operation
levy. Issuing debt in the form of capital equipment certificates has been eliminated from
the current Capital Improvements Program (CIP) and should not need to be utilized in the
future. We also continue to re-evaluate numerous purchases where extending the useful
life of some capital equipment could be achieved through renovation or reuse.
FINANCIAL INFORMATION
INTERNAL CONTROLS
In developing and improving the City’s accounting system, consideration is given to the
adequacy of internal accounting controls.Internal accounting controls are designed to
provide reasonable, but not absolute, assurance regarding the safeguarding of assets
against loss from unauthorized use or disposition and the reliability of financial records
for preparing financial statements and maintaining accountability for assets. The concept
of reasonable assurance recognizes that the cost of a control should not exceed the
CITY OF FRIDLEY, MINNESOTA
FINANCIAL INFORMATION (CONTINUED)
benefits likely to be derived and the evaluation of costs and benefits requires estimates
and judgments by management.
All internal control evaluations occur within the above framework. We believe that the
City’s internal accounting controls adequately safeguard assets and provide reasonable
assurance of the proper recording of financial transactions.
BUDGETARY CONTROLS
A complete budgetary system of accounts is maintained for the General and Special
Revenue Funds. Budgetary control is maintained in compliance with the City Charter
requirements. The Charter provides that it is the duty of the City Manager to strictly
enforce the provisions of the budget. The management policy of the City is such that the
existence of a particular item or appropriation in the approved budget does not mean that
it will or must be automatically expended. It is the policy of the City to control budgets
at the departmental level.
Budget adjustments between City divisions are made upon the approval of a resolution by
the City Council. The City Charter provides that the City Council shall not have power
to increase the total amount of the budget, whether by insertion of new items or
otherwise, beyond the estimated revenue unless the actual revenue exceeds such revenue
estimates, and in that event not beyond such actual revenue. There is a constant review
process.
Expenditures are not approved until it has been determined that 1) the expenditure is
necessary, 2) adequate funds have been appropriated, and 3) funds are available.
FUND BALANCE POLICY
The purpose of the fund balance policy is to establish appropriate fund balance levels for
each fund that is primarily supported by property tax revenues or user fees. These
policies will ensure that adequate resources are available to meet cash flow needs for
carrying out the regular operations of the City. The funds addressed in this policy include
the General Fund, Solid Waste Abatement Fund, Springbrook Nature Center Fund and
Enterprise Funds. In 2014, all the funds addressed by this policy, with the exception of
the Sewer Enterprise Fund, met the fund balance guidelines. The Sewer Enterprise Fund,
along with the other utility enterprise funds, have all implemented a multi-year plans to
ensure long-term sustainability. The Sewer Enterprise Fund is expected to meet
minimum fund balance requirements within the next couple years.
CITY OF FRIDLEY, MINNESOTA
FINANCIAL INFORMATION (CONTINUED)
INVESTMENT POLICY
The purpose of the investment policy is to develop an overall program for cash
investments, designed and managed with a high degree of professionalism, worthy of the
public trust; to establish that elected and appointed officials and employees are custodians
of a portfolio which shall be subject to public review; to establish cash investment
objectives, delegation of authority, standards of prudence, internal controls, authorized
investments, selection process for investments, and broker representations.
The investment policy outlines the investing philosophy and practices of the City of
Fridley and the Fridley Housing and Redevelopment Authority, and has been developed
to serve as a reference point for the management of City assets. It is the policy of the
City to invest public funds in a manner which will provide for safety, liquidity, and yield
in that order of importance. Investments will conform to all federal, state and local
regulations governing the investment of public funds.
OTHER INFORMATION
INDEPENDENT AUDIT
Section 7.13 of the City Charter requires an annual audit to be made of the books of
account, financial records and transactions of all administrative departments of the City
by a certified public accountant or the State Auditor’s Office of the State of Minnesota.
The accounting firm of Redpath and Company, Ltd. was engaged by the City to render an
opinion on the City’s financial statements. The auditor’s report on the basic financial
statements and combining and individual fund statements and schedules is included in the
Financial Section of this report.
AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City
of Fridley for its comprehensive annual financial report for the fiscal year ended
December, 31, 2013. In order to be awarded a Certificate of Achievement, a government
must publish an easily readable and efficiently organized comprehensive annual financial
report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our
current comprehensive annual financial report continues to meet the Certificate of
Achievement Program’s requirements and are submitting it to the GFOA to determine its
eligibility for another certificate.
CITY OF FRIDLEY, MINNESOTA
OTHER INFORMATION (CONTINUED)
ACKNOWLEDGMENTS
The preparation of this report on a timely basis could not have been accomplished
without the efficient and dedicated services of all members of the Finance Department,
with special recognition to Carol Meyer, Greg Tirevold, Jean Michaels, and to our
auditors Redpath and Company for their professional guidance. We would also like to
express our appreciation to the Mayor and members of the City Council for their interest
and support in planning and conducting the financial operations of the City in a
responsible and progressive manner.
Respectfully submitted,
Darin Nelson Shelly Peterson
Finance Director Assistant Finance Director
This page intentionally left blank
This page intentionally left blank
CITY OF FRIDLEY, MINNESOT
A
ELECTED AND APPOINTED OFFICIALS
DECEMBER 31, 2014
ELECTED OFFICIALS
Term of Office
Expires December
MayorScott J.Lund2016
Councilmember At LargeRobert L. Barnette2016
Councilmember, Ward IJames T. Saefke2014
Councilmember, Ward IIDolores M. Varichak2014
Councilmember, Ward IIIAnn R. Bolkcom 2014
APPOINTED OFFICIALS
City ManagerWally Wysopal
City AttorneyDarcy M. Erickson
Prosecuting AttorneyCarl J. Newquist
City ClerkDebra A. Skogen
Department Heads:
Finance Director/TreasurerDarin R. Nelson
Director of Public Safety and Civil DefenseDonovan W. Abbott
Fire ChiefJohn D. Berg
Director of Public WorksJames P. Kosluchar
Director of Parks and RecreationJack G. Kirk
Director of Community DevelopmentScott J. Hickok
Director of Human ResourcesDeborah K. Dahl
CITY OF FRIDLEY ORGANIZATIONAL STRUCTURE
2014
General Fund Authorized Full-Time Positions - 102(A)
(Minimum Of 32 Hours A Week)
Total Authorized Full-Time Positions - 124(A)
(Minimum Of 32 Hours A Week)
Revised 10/14/2013
CITY MANAGEMENT (4)
City Manager
Admin Assistant to the City Manager
City Clerk
Communications Specialist (.5 FTE)
Non-General Fund
CABLE TV
Cable TV Administrator
FINANCE (16)POLICE (44)FIRE (6)
Finance Director - TreasurerPublic Safety DirectorFire Chief
AccountantAdministrative AssistantAdministrative Assistant
Receptionist (.5 FTE)Assistant Chief
FIELD OPERATIONS (28)(3) Captains
ACCOUNTING (3)Captain
Assistant Finance Director(5) Sergeants
Payroll Coordinator(22) Patrol Officers
Accounting Specialist
TECHNICAL SUPPORT (14)
ASSESSING (2)Captain
City AssessorLieutenant
Appraiser(3) Detectives
Appraiser (.5 FTE)Pawn Detective
(2) School Resource Officer
MIS (2)Anoka-Henn DTF Sergeant
IT ManagerSpecial Projects Coordinator
PC TechnicianCrime Prevention Specialist
Office Supervisor
(2) Police Technicians
(Also 3 at 32 hrs/week)
Non-General Fund
LIQUOR (5)
Liquor Operations Manager
(4) Lead Liquor Store Clerks
WATER ADMIN
Utility Billing Clerk
Utility Billing Clerk (.5 FTE)
Receptionist (.5 FTE)
(A) An "Authorized Position" is defined as one that works at least 32 hours a week and receives a full-time benefit package.
PUBLIC WORKS (34)PARKS &COMMUNITYHUMAN RESOURCES (2)
RECREATION (8)DEVELOPMENT (10)
Public Works DirectorHuman Resources Director
Admin Assist/Main't CoordParks & Recreation DirectorCommunity DevelopmentAdministrative Assistant
Recreation Office CoordinatorDirector
(2) Program SupervisorsOffice Coordinator
ENGINEERING (3) Sr Citizens Program Sup
Asst. Public Works DirectorBUILDING INSPECTION (3)
(2) Engineering TechnicianChief Building Official
Building Inspector
PW MAINTENANCE (19)Permit Technician
Administrative Asst.
PLANNING
Planning Manager
Operations ManagerPlanner (.6 FTE)
Parks and StreetsAdmin. Asst. (.6 FTE)
Parks Leadperson
(5) Public Service WorkerRENTAL INSPECTIONS
Inspector (2) (.75 FTE)
Streets Leadperson
(7) Public Service Worker
Fleet Services Supervisor
(2) Mechanic
Non-General FundNon-General Fund
SPRINGBROOK NATURESOLID WASTE
Non-General Fund
WATER (5)CENTER (3) Environmental Planner
Water SupervisorNature Center Director
(4) Public Service WorkerProgram SupervisorHRA
Program Admin AssistAsst. Executive Director
SEWER (5)
Sewer Supervisor
(4) Public Service Worker
This page intentionally left blank
II. FINANCIAL SECTION
This page intentionally left blank
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Fridley, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, the discretely presented component unit, each major fund, and the aggregate
remaining fund information of the City of Fridley, Minnesota, as of and for the year ended December
31, 2014, and the related notes to the financial statements, which collectively comprise the City’s
basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the discretely
presented component unit, each major fund, and the aggregate remaining fund information of the
City of Fridley, Minnesota, as of December 31, 2014, and the respective changes in financial
position, and, where applicable, cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Report on Summarized Comparative Information
We have previously audited the City of Fridley, Minnesota’s 2013 financial statements, and we
expressed an unmodified audit opinion on the respective financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund
information in our report dated May 16, 2014. In our opinion, the summarized comparative
information presented herein as of and for the year ended December 31, 2013 is consistent, in all
material respects, with the audited financial statements from which it has been derived.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and budgetary comparison information and the schedule of
funding progress listed in the table of contents on pages 23 - 33 and 90 - 96 be presented to
supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who considers it
to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures
to the required supplementary information in accordance with auditing standards generally accepted
in the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during
our audit of the basic financial statements. We do not express an opinion or provide any assurance
on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Fridley, Minnesota’s basic financial statements. The introductory
section, combining and individual fund financial statements and schedules, and statistical section are
presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining and individual
fund financial statements and schedules are fairly stated in all material respects in relation to the
basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide
any assurance on them.
Other Reporting Required by
Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 18,
2015, on our consideration of the City of Fridley, Minnesota’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing, and
not to provide an opinion on internal control over financial reporting or on compliance. That report
is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the City of Fridley, Minnesota’s internal control over financial reporting and compliance.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
May 18, 2015
This page intentionally left blank
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Fridley, we offer readers of the City of Fridley’s financial
statements this narrative overview and analysis of the financial activities of the City for the
fiscal year ended December 31, 2014. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter
of transmittal, which can be found on pages 3 through 9 of this report.
Financial Highlights
The assets of the City of Fridley exceeded its liabilities at the close of the most recent fiscal
year by $63,963,198 (net position). Of this amount, $34,049,041 (unrestricted net position)
may be used to meet the government’s ongoing obligations to citizens and creditors in
accordance with the City's fund designations and fiscal policies.
During 2014, the City’s total net position increased by $1,191,565.
As of the close of the current fiscal year, the City of Fridley’s governmental funds reported
combined ending fund balances of $24,806,833. Of this total amount, $2,086,435, or 8% is
restricted through legal restrictions or third-party agreements.
At the end of the current fiscal year the general fund balance of $8,317,630 included $60,123
in non-spendable, $15,176 in restricted, and $8,242,331 in unassigned fund balance.
The City’s total debt decreased by $1,647,173 during the current fiscal year. Total debt
outstanding at December 31, 2014 is $12,408,941.
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the City of Fridley’s
basic financial statements. The City’s basic financial statements comprise three components:
1) government-wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains other supplementary information in addition
to the basic financial statements themselves.
Government-wide financial statements
. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Fridley’s finances, in a
manner similar to a private-sector business.
The statement of net position presents information on all of the City of Fridley’s assets and
liabilities, with the difference between the two reported as net position. Over time, increases
or decreases in net position may serve as a useful indicator of whether the financial position
of the City of Fridley is improving or deteriorating.
Managements Discussion and Analysis
’
The statement of activities presents information showing how the City’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will
only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused
vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Fridley
that are principally supported by taxes and intergovernmental revenues (governmental
activities) from other functions that are intended to recover all or a significant portion of their
costs through user fees and charges (business-type activities). The governmental activities of
the City of Fridley include general government, public safety, public works, community
development, and recreation and naturalist. The business-type activities of the City of
Fridley include liquor, water, sewer and storm water.
The government-wide financial statements can be found on pages 37 through 39 of this
report.
Fund financial statements
. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The
City of Fridley, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City
of Fridley can be divided into three categories: governmental funds, proprietary funds, and
fiduciary funds.
Governmental funds
. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government’s near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government-wide
financial statement. By doing so, readers may better understand the long-term impact of the
City's near term financial decisions. Both the governmental fund balance sheet and
governmental fund statement of revenues, expenditures, and change in fund balances provide
a reconciliation to facilitate this comparison between governmental funds and governmental
activities.
Managements Discussion and Analysis
’
The City of Fridley maintains three individual major governmental funds. Information is
presented separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances for the general fund, debt
service fund and street improvement capital projects fund, all of which are considered to be
major funds.
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-major governmental funds is provided in the form
of combining statements elsewhere in this report.
The City of Fridley adopts an annual appropriated budget for its General fund, the Cable TV,
Solid Waste Abatement, Grant Management and Springbrook Nature Center special revenue
funds.
A budgetary comparison statement has been provided for those funds to demonstrate
compliance with this budget.
The basic governmental fund financial statements can be found on pages 40 through 45 of
this report.
Proprietary funds
. The City of Fridley maintains four enterprise funds and three internal
service funds as a part of its proprietary fund type. Enterprise funds are used to report the
same functions presented as business-type activities in the government-wide financial
statements. The City of Fridley uses enterprise funds to account for its liquor, water, sewer,
and storm water operations. The City of Fridley uses internal service funds to account for its
employee benefits, self-insurance and information systems. Because these services
predominately benefit governmental rather than business-type functions, they have been
included within governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the water, sewer, storm water and liquor operations, all of which are
considered to be major funds of the City of Fridley. Conversely, the internal service funds
are combined into a single, aggregated presentation in the proprietary fund financial
statements. Individual fund data for the internal service funds is provided in the form of
combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 46 through 51 of this
report.
Fiduciary funds
. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government-wide
financial statements because the resources of those funds are not available to support the City
of Fridley’s own program. The accounting used for fiduciary funds is much like that used for
proprietary funds.
Managements Discussion and Analysis
’
The basic fiduciary fund financial statement can be found on page 52 of this report.
Notes to the financial statements
. The notes provide additional information that is essential
to a full understanding of the data provided in the government–wide and fund financial
statements. The notes to the financial statements can be found on pages 53 through 87 of this
report.
Other information.
The combining statements referred to earlier in connection with the
non-major governmental funds are presented immediately following the required
supplementary information on budgetary comparisons. Combining and individual fund
statements and schedules can be found on pages 101 through 133 of this report.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's
financial position. In the case of the City of Fridley, assets exceeded liabilities by
$63,963,198 at the close of the most recent fiscal year.
A significant portion of the City of Fridley's net position ($27,240,175 or 43 percent) reflects
its investment in capital assets (e.g. land, buildings, machinery and equipment) less any
related debt used to acquire those assets that is still outstanding. The City of Fridley uses
these capital assets to provide services to citizens; consequently, these assets are not available
for future spending. Although the City of Fridley’s investment in its capital assets is reported
net of related debt, it should be noted that the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be used to liquidate
these liabilities.
City of Fridley’s Net Position
Governmental ActivitiesBusiness-TypeTotals
201320142013201420132014
Current and other assets$30,220,437$30,949,907$9,936,439$9,718,681$40,156,876$40,668,588
Capital assets20,522,49719,716,35918,573,24018,834,33439,095,73738,550,693
Total assets$50,742,934$50,666,266$28,509,679$28,553,015$79,252,613$79,219,281
Long-term liabilities outstanding$6,264,552$5,121,191$5,910,986$5,331,712$12,175,538$10,452,903
Other liabilities3,033,9513,363,0751,271,4911,440,1054,305,4424,803,180
Total liabilities$9,298,503$8,484,266$7,182,477$6,771,817$16,480,980$15,256,083
Net position:
Invested in capital assets, net of related debt$13,842,497$14,186,359$12,910,117$13,053,816$26,752,614$27,240,175
Restricted3,050,2042,673,982 - - 3,050,2042,673,982
Unrestricted24,551,73025,321,6598,417,0858,727,38232,968,81534,049,041
Total net position$41,444,431$42,182,000$21,327,202$21,781,198$62,771,633$63,963,198
Managements Discussion and Analysis
’
A portion of the of the City of Fridley’s net position represents resources that are subject to
external restrictions on how they may be used.The remaining balance of $34,049,041 in
unrestricted net position may be used to meet the City’s ongoing obligations to citizens and
creditors.
At the end of the current fiscal year, the City of Fridley is able to report positive balances in
all three categories of net position, both for the government as a whole, as well as for its
separate governmental and business-type activities.
Governmental Activities
Governmental activities increased the City of Fridley’s net position by $737,569. Operating
grants and contributions increased by $742,136 due to an increase in aid for street
improvement activity. General Government expenditures increased by $657,644 as a result
of new budgeted positions and an increase in technology purchases. Public Safety
expenditures increased by $468,991 primarily due to additional labor costs and capital
expenditures. Investment earnings increase for 2014 by $851,232 as a result of a positive
year-end market value adjustments.
City of Fridley’s Changes in Net Position
Governmental ActivitiesBusiness-Type ActivitiesTotals
201320142013201420132014
Revenues:
Program revenues:
Charges for services$3,897,179$3,916,349$12,283,553$13,188,157$16,180,732$17,104,506
Operating grants and contributions1,095,7241,837,86050,000118,8271,145,7241,956,687
Capital grants and contributions1,747,3031,220,903 - 321,8001,747,3031,542,703
General revenues:
Property taxes11,003,45511,521,196 - - 11,003,45511,521,196
Grants and contributions not
restricted to specific programs1,033,8141,476,664 - - 1,033,8141,476,664
Unrestricted investment earnings(216,821)634,411(52,346)148,248(269,167)782,659
Gain (loss) on sale of property35,680 - - - 35,680 -
Other - 93,23624,66312,20124,663105,437
Total revenues18,596,33420,700,61912,305,87013,789,23330,902,20434,489,852
Expenses:
General government3,434,4794,092,123 - - 3,434,4794,092,123
Public safety7,101,3317,570,322 - - 7,101,3317,570,322
Public works5,928,3315,959,595 - - 5,928,3315,959,595
Community development935,716898,455 - - 935,716898,455
Recreation and naturalist1,456,8411,513,135 - - 1,456,8411,513,135
Interest on long-term debt218,610179,420 - - 218,610179,420
Liquor - - 4,148,4474,596,3164,148,4474,596,316
Water - - 2,815,5882,902,4192,815,5882,902,419
Sewer - - 4,974,5254,988,5874,974,5254,988,587
Storm water - - 587,036597,915587,036597,915
Total expenses 19,075,30820,213,05012,525,59613,085,23731,600,90433,298,287
Increase (decrease) in net position before transfers(478,974)487,569(219,726)703,996(698,700)1,191,565
Transfers250,000250,000(250,000)(250,000) - -
Increase in net position(228,974)737,569(469,726)453,996(698,700)1,191,565
Net position - January 141,673,40541,444,43121,796,92821,327,20263,470,33362,771,633
Net position - December 31$41,444,431$42,182,000$21,327,202$21,781,198$62,771,633$63,963,198
Managements Discussion and Analysis
’
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenses:
Managements Discussion and Analysis
’
Business-Type Activities
Business-type activities increased net position by $453,996. There was an increase in gross
profits for the Liquor fund due to the completion of a major remodeling project in the prior
year.
Business-Type of Activities – Program Revenues vs Operating Expenses
Managements Discussion and Analysis
’
Financial Analysis of the Government's Funds
Governmental funds
. The focus of the City of Fridley’s governmental funds is to provide
information on near-term inflows, outflows, and balances of spendable resources. Such
information is useful in assessing the City of Fridley’s financing requirements. In particular,
unrestricted fund balance may serve as a useful measure of a government’s net resources
available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City of Fridley’s governmental funds reported
combined ending fund balances of $24,806,833.
The General Fund’s fund balance increased by $230,216 in 2014. This was much better than
the $33,564 increase originally budgeted for.Several departments in the General Fund had
increases in expenditures as a result of prior year personnel vacancies filled in 2014. In
addition, building permit revenue increased due to several major new construction projects
breaking ground in 2014.
The Capital Improvement Fund was split into three new funds for 2014. The three new funds
are named Park Improvements, Street Improvements and Building Improvements. The Street
Improvements Fund has an assigned fund balance of $2,814,587 and is identified as a major
fund. Prior to 2012, LGA was budgeted in the General Fund. However, LGA has been
susceptible to state legislation that resulted in this becoming an unreliable source of revenue.
Rather than utilizing this revenue for operations within the General Fund, which requires
continual funding, the decision was made to allocate LGA to the improvement funds. Now if
the City experiences fluctuations in LGA funding, we are more easily able to adjust the
budget for one-time purchases rather than continuous operational funding.
The Capital Equipment Fund was added as a governmental fund in 2012. In 2014, this fund
ended the year with a committed fund balance of $382,267. This capital projects fund was
added to better account for capital equipment purchases along with the proceeds from capital
equipment certificates. In the past, capital equipment was purchased out of the General Fund
and would tend to cause large peaks and valleys in regards to total expenditures. With the
capital equipment purchases reported in a separate fund, the General Fund operational
expenditures are more constant from year to year.
Proprietary funds
. The City of Fridley’s proprietary funds provide the same type of
information found in the government-wide financial statements, but in more detail.
The unrestricted net position in the respective proprietary funds are liquor $330,591, water
$4,134,032, sewer $2,583,293 and storm water $1,679,466. The water and storm water funds
had an increase in net position of $95,046 and $494,149 respectively. The liquor fund had a
decrease in net position of $47,474 primarily due to instituting a sales and marketing
initiative in 2014 that required up-front implementation costs. The sewer fund had a
decrease in net position of $87,725 as a result of increased maintenance costs and continued
conservation efforts by commercial customers.
Managements Discussion and Analysis
’
Budgetary Highlights
General Fund
The original revenue and expenditure budgets were amended to account for $341,398 in
additional grants and donations received during the year.
Operating expenditures in total were less than the final budgetary estimates by $268,324.
Significant variances include unspent emergency funds of $120,000, unspent training funds
of $23,000 within Human Resources and vacancies in the Engineering department resulting
in unspent funds of approximately $28,000.
Net investment earnings rebounded in 2014 after posting negative net investment earnings in
2013. At the end of each year, the City is required by GASB Statement 31 to adjust
investments from book value to market value, even if the investments are intended to be held
to maturity, which the City’s investment policy strongly suggests. During the fall of 2013,
after years of declining interest rates, the investment market started to see increasing rates.
Since the City has previously purchased investments on its books with interest rates below
the current market rate, the market value of these investments declined to a value below the
current book value, causing the City to have to record a book loss at December 31, 2013.
This previously recorded year-end investment loss is only a book loss since the City tends to
hold investments to maturity. If the investment is held to maturity, interest earning payments
continue to be disbursed to the City and as investments mature, the City will continue to
receive its full principal investment return. In essence, the book loss will be recovered as
investments mature.
This uptick in the investment market was short lived as interest rates reversed course and
came back down to rates similar to what the City has experienced over the last several years.
Even though the actual amount of interest income received varied very little from 2013 to
2014, since the City had recorded the large market value loss at December 31, 2013, a large
market value gain needed to be recorded at December 31, 2014 to accurately reflect the
current market conditions. This demonstrates the volatility of the investment market and all
the more reason why the City tends to hold investments to maturity and invest in secure
investments.
Capital Asset and Debt Administration
Capital assets
. The City of Fridley’s, investment in capital assets for its governmental and
business type activities as of December 31, 2014, amounts to $38,550,693 (net of
accumulated depreciation). This investment in capital assets includes land, buildings and
structures, improvements other than buildings, machinery and equipment, infrastructure and
construction in progress.
Managements Discussion and Analysis
’
City of Fridley’s Capital Assets
(Net of Depreciation
)
Governmental ActivitiesBusiness-Type ActivitiesTotals
201320142013201420132014
Land$2,841,516$2,814,016$306,477$306,477$3,147,993$3,120,493
Buildings and structures 1,235,359 1,002,752 1,387,663 1,352,132 2,623,022 2,354,884
Improvements other than buildings1,765,136 1,754,204 6,476,716 5,982,097 8,241,852 7,736,301
Machinery and equipment 2,772,199 2,910,282 402,663 774,239 3,174,862 3,684,521
Infrastructure 11,901,993 11,039,817 9,965,883 10,003,147 21,867,876 21,042,964
Construction in progress 6,294 195,288 33,838 416,242 40,132 611,530
Total Capital Assets$20,522,497$19,716,359$18,573,240$18,834,334$39,095,737$38,550,693
Additional information on the City of Fridley’s capital assets can be found in Note 5.
Long-term debt
. At the end of the current fiscal year, the City of Fridley had total bonded
debt outstanding of $11,375,000, a decrease of $1,720,000 from 2013. $4,000,000 of this is
for general obligation improvement debt which is supported by special assessments and a
property tax levy, an additional $1,530,000 is for general obligation equipment certificate
debt which financed the City’s capital equipment purchases, and $5,845,000 is general
obligation utility revenue bonds which financed utility improvements.
In addition, there is long-term debt in the amount of $1,035,423 for compensated absences.
Additional information on the City of Fridley’s long-term debt can be found in Note 6.
City of Fridley’s Outstanding Debt
General Obligation Improvement Bonds, General Obligation Equipment Certificates, General
Obligation Revenue Bonds, and Compensated Absences (excluding bond discounts) are as
follows:
Governmental ActivitiesBusiness-Type ActivitiesTotals
201320142013201420132014
General Obligation Improvement Bonds$4,955,000$4,000,000$0$0$4,955,000$4,000,000
General Obligation Revenue Bonds- - 6,415,000 6,415,000 5,845,000
5,845,000
General Obligation Equipment Certificates1,725,0001,530,000- 1,725,000- 1,530,000
Compensated Absences 962,9601,035,423 962,960- 1,035,423
-
Total$7,642,960$6,565,423$6,415,000$5,845,000$14,057,960$12,410,423
The City of Fridley has an Aa1 rating, which was reaffirmed by Moody’s Investors Service
in November of 2014. The rating review by Moody’s removed the negative outlook that was
placed on the City’s rating back in 2012 due to multi-year decline in market values. The
removal of the negative outlook is based on recent tax base growth that is expected to
continue in the near term.
Managements Discussion and Analysis
’
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of
total Estimated Market Value. The current debt limitation for the City of Fridley is
$58,457,403. Only $1,530,000 of the City’s outstanding debt is counted within the statutory
limitation because all other debt is either wholly or partially repaid by revenues other than
general property tax levies.
Requests for information.
This financial report is designed to provide a general overview
of the City of Fridley’s finances for all those with an interest in the government’s finances.
Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to the Finance Director, 6431 University Avenue
NE, Fridley, Minnesota 55432.
This page intentionally left blank
BASIC FINANCIAL STATEMENTS
This page intentionally left blank
Exhibit A-1
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2014
With comparative totals for December 31, 2013
Component Unit
Primary GovernmentHousing & Redevelopment
GovernmentalBusiness-TypeTotalsAuthority
ActivitiesActivities2014201320142013
Assets:
Cash and investment$26,312,22$5,895,150$32,207,37$32,819,532$8,971,879$9,896,629
s55
- - - 750,031 - -
Restricted cash and investment
s
Receivables:
Accounts193,8082,759,6472,953,4552,629,28864,83250,543
Taxes237,755 - 237,755350,47516,64416,953
Special assessments2,276,74843,6242,320,3722,129,460 - -
Mortgage - - - - 932,767899,901
Interest107,891 - 107,891129,73144,93358,633
Due from component unit1,566,054 - 1,566,054125,431 - -
Due from other governments195,303291,419486,722307,279 - -
Prepaid items - - - - 245750
Inventories - at cost60,123728,841788,964915,649 - -
Land held for resale - - - - 3,911,8493,547,925
Capital assets (net of accumulated depreciation):
Land2,814,016306,4773,120,4933,147,9932,023,5112,023,511
Buildings and structures1,002,7521,352,1322,354,8842,623,022 - -
Improvements other than buildings1,754,2045,982,0977,736,3018,241,852 - -
Machinery and equipment2,910,282774,2393,684,5213,174,862 - -
Infrastructure11,039,81710,003,14721,042,96421,867,876 - -
Construction in progress195,288416,242611,53040,132 - -
Total assets50,666,26628,553,01579,219,28179,252,61315,966,66016,494,845
Liabilities:
Due to primary government - - - - 1,566,054125,431
Accounts payable355,382585,834941,216660,741333,767373,833
Deposits payable 7,100 - 7,1001,200 - -
Contracts payable116,01144,824160,83531,330 - -
Due to other governments17,33459,14176,475161,056 - -
Salaries payable741,68076,364818,044704,424 - -
Accrued interest payable71,85288,942160,794183,747 - -
Compensated absences payable:
Due within one year846,137 - 846,137776,529 - -
Due in more than one year189,286 - 189,286186,431 - -
Other post employment benefits payable:
Due in more than one year591,90573,194665,099615,953 - -
Unearned revenue17,579 - 17,57966,415 - -
Bonds payable:
Due within one year1,190,000585,0001,775,0001,720,000 - -
Due in more than one year4,340,0005,258,5189,598,51811,373,154 - -
Total liabilities8,484,2666,771,81715,256,08316,480,9801,899,821499,264
Net position:
Net investment in capital assets14,186,35913,053,81627,240,17526,752,6142,023,5112,023,511
Restricted for:
Debt service2,499,921 - 2,499,9212,827,982 - -
Tax increment purposes - - - - 547,2061,264,931
Police forfeitures86,24586,245102,570 - -
Cable television equipment72,640 - 72,64072,640 - -
Donations15,176 - 15,17647,012 - -
Unrestricted25,321,6598,727,38234,049,04132,968,81511,496,12212,707,139
Total net position$42,182,000$21,781,198$63,963,198$62,771,633$14,066,839$15,995,581
The accompanying notes are an integral part of these financial statements.
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2014
With comparative totals for the year ended December 31, 2013
Program Revenues
Operating
Charges ForGrants and
ExpensesServicesContributions
Functions/Programs
Primary government:
Governmental activities:
General government$4,092,123$2,079,719$80,688
Public safety7,570,322683,418537,651
Public works5,959,59527,3121,039,175
Community development898,455798,392151,865
Parks and recreation1,513,135327,50828,481
Interest on long-term debt179,420 - -
Total governmental activities20,213,0503,916,3491,837,860
Business-type activities:
Liquor4,596,3164,786,987 -
Water2,902,4192,913,717 -
Sewer4,988,5874,754,492118,827
Storm water597,915732,961 -
Total business-type activities13,085,23713,188,157118,827
Total primary government$33,298,287$17,104,506$1,956,687
Component unit:
Housing and Redevelopment Authority$5,705,241$46,754$1,543,049
Total component unit$5,705,241$46,754$1,543,049
General revenues:
Property taxes
Tax increment collections
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Net change in the fair market value of investments
Gain (loss) on sale of property
Insurance and other reimbursements
Other
Transfers
Total general revenues
and transfers
Change in net position
Net position - January 1
Net position - December 31
The accompanying notes are an integral part of these financial statements.
Exhibit A-2
Net (Expense) Revenue and Changes in Net PositionComponent Unit
Primary GovernmentHousing & Redevelopment
Capital
TotalsAuthority
Grants andGovernmentalBusiness-Type
ContributionsActivitiesActivities2014201320142013
$ - ($1,931,716)$ - ($1,931,716)($1,342,069)$ - $ -
- (6,349,253) - (6,349,253)(5,741,642) - -
1,220,903(3,672,205) - (3,672,205)(3,696,532) - -
- 51,802 - 51,802(270,018) - -
- (1,157,146) - (1,157,146)(1,066,231) - -
- (179,420) - (179,420)(218,610) - -
1,220,903(13,237,938)0(13,237,938)(12,335,102)00
- - 190,671190,671210,344 - -
- - 11,29811,298(27,442) - -
- - (115,268)(115,268)(401,727) - -
321,800 - 456,846456,84626,782 - -
321,8000543,547543,547(192,043)00
$1,542,703(13,237,938)543,547(12,694,391)(12,527,145)$0$0
$ -($4,115,438)($1,767,017)
$0(4,115,438)(1,767,017)
11,521,196 - 11,521,19611,003,455378,327373,063
- - - - 1,570,221995,846
1,476,664 - 1,476,6641,033,814 - -
248,26558,894307,159301,94260,41246,564
386,14689,354475,500(571,109)41,272(51,864)
- - - 35,680 - 43,914
- - - 24,663 - -
93,23612,201105,437 - 136,464135,929
250,000(250,000) - - - -
13,975,507(89,551)13,885,95611,828,4452,186,6961,543,452
737,569453,9961,191,565(698,700)(1,928,742)(223,565)
41,444,43121,327,20262,771,63363,470,33415,995,58116,219,146
$42,182,000$21,781,198$63,963,198$62,771,634$14,066,839$15,995,581
The accompanying notes are an integral part of these financial statements.
CITY OF FRIDLEY, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2014
Debt Service
General
Assets
Cash and investments$8,694,057$6,034,338
Receivables:
Accounts94,291 -
Taxes210,80818,910
Special assessments42,9641,146,287
Interest107,891 -
Due from other funds97,712 -
Due from component unit61,6101,504,375
Due from other governments17,813 -
Inventories, at cost60,123 -
Total assets$9,387,269$8,703,910
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable$243,941$ -
Deposits payable7,100 -
Contracts payable6,878 -
Due to other governments16,735 -
Due to other funds - -
Salaries payable599,309 -
Unearned revenue - -
Total liabilities873,9630
Deferred inflows of resources:
Unavailable revenue195,6761,155,362
Fund balance:
Nonspendable60,123 -
Restricted15,1761,912,374
Committed - -
Assigned - 5,636,174
Unassigned8,242,331 -
Total fund balance8,317,6307,548,548
Total liabilities, deferred inflows of resources, and fund balanc$9,387,269$8,703,910
The accompanying notes are an integral part of these financial statements.
Exhibit A-3
Other Governmental
Street ImprovementsFundsIntra-Activity Eliminations
Totals Governmental Funds
20142013
$2,760,277$6,249,598$ - $23,738,270$23,947,126
- 99,517 - 193,808172,791
1137,924 - 237,755350,475
996,75390,744 - 2,276,7482,113,767
- - - 107,891129,731
- - (97,712) - -
- - - 1,565,985123,004
100,79276,192 - 194,797302,229
- - - 60,12350,366
$3,857,935$6,523,975($97,712)$28,375,377$27,189,489
$7,503$103,586$ -$355,030$245,817
- - -7,1001,200
39,37369,760 -116,01131,330
-599 -17,33428,600
-97,712(97,712) - -
-26,109 -625,418541,117
-17,579 -17,57966,415
46,876315,345(97,712)1,138,472914,479
996,47282,562 -2,430,0722,308,719
- - -60,12350,366
-158,885 -2,086,4352,273,676
-2,566,101 -2,566,1012,124,944
2,814,5873,498,794 -11,949,55511,618,835
-(97,712) -8,144,6197,898,470
2,814,5876,126,068024,806,83323,966,291
$3,857,935$6,523,975($97,712)$28,375,377$27,189,489
Fund balance reported above$24,806,833$23,966,291
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds.19,716,35920,246,002
Other long-term assets are not available to pay for current-period expenditures and,
therefore, are reported as unavailable revenue in the funds.2,430,0722,308,719
Long-term liabilities, including bonds payable, are not due and payable in the
current period and, therefore, are not reported in the funds.(6,193,757)(7,314,593)
Internal service funds are used by management to charge the cost of certain activities to individual
funds. The assets and liabilities are included in the governmental statement of net position.1,422,4932,238,012
$42,182,000$41,444,431
Net position of governmental activities
The accompanying notes are an integral part of these financial statements.
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2014
With comparative totals for the year ended December 31, 2013
Debt Service
General
Revenues:
Taxes$10,111,027$932,078
Special assessments19,080351,478
Licenses and permits899,497 -
Intergovernmental revenue939,002 -
Charges for services2,089,762 -
Fines and forfeits179,484 -
Investment income:
Interest and dividends93,40876,810
Net change in the fair value of investments94,135115,493
Miscellaneous:
Other199,932 -
Total revenues14,625,3271,475,859
Expenditures:
Current:
General government2,669,867 -
Public safety7,114,170 -
Public works3,240,819 -
Community development894,785 -
Parks and recreation876,754 -
Debt service - 1,344,040
Capital outlay96,581 -
Total expenditures14,892,9761,344,040
Excess (deficiency) of revenues
over (under) expenditures(267,649)131,819
Other financing sources (uses):
Proceeds from sale of capital assets - -
Insurance and other reimbursements - -
Transfers in672,865 -
Transfers out(175,000)(350,000)
Total other financing sources (uses)497,865(350,000)
Net change in fund balance230,216(218,181)
Fund balance - January 18,087,4147,766,729
Fund balance - December 31$8,317,630$7,548,548
The accompanying notes are an integral part of these financial statements.
Exhibit A-4
Other
StreetGovernmentalIntra-Activity
ImprovementsFundsEliminations
Totals Governmental Funds
20142013
$8$511,444$ - $11,554,557$11,024,785
542,48025,252 - 938,290834,120
- 271,868 - 1,171,3651,123,635
658,3211,611,119 - 3,208,4422,643,728
- 428,300 - 2,518,0622,545,908
- 47,438 - 226,922218,194
11,70037,718 - 219,636219,946
49,82486,157 - 345,609(405,419)
- 114,484 - 314,416295,409
1,262,3333,133,780020,497,29918,500,306
- 1,062,189 - 3,732,0563,279,657
- 51,508 - 7,165,6786,794,524
1,378,62616,307 - 4,635,7523,530,939
- - - 894,785817,895
- 545,651 - 1,422,4051,305,158
- - - 1,344,0401,207,326
- 1,193,427 - 1,290,0082,536,286
1,378,6262,869,082020,484,72419,471,785
(116,293)264,698012,575(971,479)
- 36,836 - 36,83635,679
- - - - -
2,971,8804,608,871(7,462,485)791,131250,000
(41,000)(6,896,485)7,462,485 - (125,000)
2,930,880(2,250,778)0827,967160,679
2,814,587(1,986,080)0840,542(810,800)
- 8,112,148 - 23,966,29124,777,091
$2,814,587$6,126,068$0$24,806,833$23,966,291
The accompanying notes are an integral part of these financial statements.
This page intentionally left blank
Exhibit A-5
CITY OF FRIDLEY, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2014
With comparative amounts for the year ended December 31, 2013
20142013
Amounts reported for governmental activities in the
statement of activities (Exhibit A-2) are different because:
Net changes in fund balances - total governmental funds (Exhibit A-4)$840,542($810,800)
Governmental funds report capital outlays as expenditures. However,
in the statement of activities the cost of those assets is allocated
over their estimated useful lives and reported as depreciation
expense. This is the amount by which capital outlays exceeded
depreciation in the current period.(806,139)(341,567)
Revenues in the statement of activities that do not provide current
financial resources are not reported as revenues in the funds.121,35383,257
The issuance of long-term debt (e.g., bonds, leases) provides current
resources to governmental funds, while the repayment of the
principal of financial long-term debt consumes the current
financial resources of governmental funds. Neither transaction,
however, has any effect on net position. This amount is the net
effect of these differences in the treatment of long-term debt and
related items.1,150,000980,000
Internal service funds are used by management to charge the cost of
certain activities to individual funds. This amount is net revenue
attributable to governmental activities.(815,519)(126,167)
Governmental funds do not report transfers of capital assets from
internal service funds. However in the statement of activities the
net book value of those assets are recorded. 276,496 -
Other post employment benefits in the statement of activities does not
require the use of current financial resources and, therefore, is not
reported as expenditures in governmental funds.(43,784)(21,963)
Accrued interest reported in the statement of activities does not require
the use of current financial resources and, therefore, is not
reported as expenditures in governmental funds.14,6208,266
Change in net position of governmental activities (Exhibit A-2)$737,569($228,974)
The accompanying notes are an integral part of these financial statements.
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2014
With comparative totals for December 31, 2013
Business-Type Activities - Enterprise Funds
Assets:LiquorWater
Current assets:
Cash and investments$142,661$3,271,177
Restricted cash and investments - -
Accounts receivable12,1001,124,732
Special assessments receivable - 10,315
Due from component unit - -
Due from other governments - -
Prepaid items - -
Inventories - at cost607,811121,030
Total current assets762,572 4,527,254
Noncurrent assets:
Capital assets:
Land151,946154,531
Buildings and structures130,2113,167,580
Improvements other than buildings824,7498,934,668
Machinery and equipment216,4591,953,518
Infrastructure - 10,179,257
Construction in process - -
Total capital assets1,323,365 24,389,554
Less: Allowance for depreciation(763,085)(14,322,933)
Net capital assets560,28010,066,621
Total noncurrent assets560,28010,066,621
Total assets1,322,85214,593,875
Liabilities:
Current liabilities:
Accounts payable331,608238,690
Accrued interest payable - 78,780
Contracts payable - 14,824
Due to other governments51,4826,603
Salaries payable28,92223,700
Payroll deductions payable - -
Compensated absences payable - -
Bonds payable - current - 530,000
Total current liabilities412,012 892,597
Noncurrent liabilities:
Other post employment benefits19,96930,625
Compensated absences - noncurrent - -
Bonds payable - noncurrent - 4,538,518
Total noncurrent liabilities19,969 4,569,143
Total liabilities431,9815,461,740
Net position:
Net investment in capital assets560,2804,998,103
Unrestricted330,5914,134,032
Total net position$890,871$9,132,135
The accompanying notes are an integral part of these financial statements.
Exhibit A-6
Governmental
Activities -
Internal Service
Funds
Business-Type Activities - Enterprise FundsTotals
SewerStorm Water20142013
$1,053,825$1,427,487$5,895,150$5,852,707$2,573,955
- - - 750,031 -
1,390,182232,6332,759,6472,447,675 -
- 33,30943,62415,693 -
- - - - 69
204,09587,324291,4195,050506
- - - - -
- - 728,841865,283 -
2,648,102 1,780,753 9,718,681 9,936,439 2,574,530
- - 306,477306,477 -
8,770 - 3,306,5613,262,996 -
2,906,3542,066,53414,732,30514,682,346 -
971,254172,2153,313,4463,019,328 -
7,052,8557,438,00824,670,12024,067,839 -
- 416,242416,24233,838 -
10,939,233 10,092,999 46,745,151 45,372,824 0
(7,139,432)(5,685,367)(27,910,817)(26,799,584) -
3,799,8014,407,63218,834,33418,573,2400
3,799,8014,407,63218,834,33418,573,2400
6,447,9036,188,38528,553,01528,509,6792,574,530
6,9208,616585,834407,443352
5,7714,39188,94297,275 -
5,75324,24744,824 - -
231,03359,141131,457 -
23,742 - 76,36465,316 -
- - - - 116,262
- - - - 846,137
30,00025,000585,000570,000 -
72,209 63,287 1,440,105 1,271,491 962,751
22,600 - 73,19467,832 -
- - - - 189,286
410,000310,0005,258,5185,843,154 -
432,600 310,000 5,331,712 5,910,986 189,286
504,809373,2876,771,8177,182,4771,152,037
3,359,8014,135,63213,053,81612,910,117 -
2,583,2931,679,4668,727,3828,417,0851,422,493
$5,943,094$5,815,098$21,781,198$21,327,202$1,422,493
The accompanying notes are an integral part of these financial statements.
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2014
With comparative totals for the year ended December 31, 201
3
Business-Type Activities - Enterprise Funds
LiquorWater
Sales$4,786,987$ -
Cost of sales(3,525,672) -
Gross profit1,261,3150
Operating revenues:
Customer billings - 2,909,224
Charges for services - -
Other revenues - 4,493
Total operating revenues0 2,913,717
Total gross profit and operating revenues1,261,315 2,913,717
Operating expenses:
Personal services547,213801,180
Supplies and other charges:
Disposal charges - -
Other474,9111,180,985
Depreciation48,520729,276
Total operating expenses1,070,644 2,711,441
Operating income (loss)190,671 202,276
Nonoperating revenues (expenses):
Intergovernmental revenue - -
Investment income:
Interest and dividends(1,005)35,327
Net change in the fair value of investments65948,421
Insurance reimbursement12,201 -
Interest expense - (190,978)
Other - -
Total nonoperating revenues (expenses)11,855 (107,230)
Income (loss) before transfers and capital contributions202,526 95,046
Loss on disposal of capital assets - -
Transfers and capital contributions:
Transfers out(250,000) -
Capital contributions - intergovernmental - -
Total contributions and transfers(250,000) -
Change in net position(47,474)95,046
Net position - January 1 938,3459,037,089
Net position - December 31$890,871$9,132,135
The accompanying notes are an integral part of these financial statements.
Exhibit A-7
Governmental
Activities -
Business-Type Activities - Enterprise Funds
Internal Service
Funds
SewerStorm WaterTotals
20142013
$ - $ - $4,786,987$4,308,791$ -
- - (3,525,672)(3,222,209) -
001,261,3151,086,5820
4,754,492699,6998,363,4157,961,738 -
- - - - 247,254
- - 4,49310,493 -
4,754,492 699,699 8,367,908 7,972,231 247,254
4,754,492 699,699 9,629,223 9,058,813 247,254
759,360250,1002,357,8532,315,25478,006
3,581,746 - 3,581,7463,595,271 -
312,294101,4302,069,6201,821,337249,107
321,262235,7971,334,8551,336,051 -
4,974,662 587,327 9,344,074 9,067,913 327,113
(220,170)112,372 285,149 (9,100)(79,859)
118,827 - 118,8271,000 -
9,23815,33458,89455,57228,629
18,30521,96989,354(108,918)40,537
- - 12,20124,66312,801
(13,925)(10,588)(215,491)(235,474) -
- 33,26233,26252,531 -
132,445 59,977 97,047 (210,626)81,967
(87,725)172,349 382,196 (219,726)2,108
- - - - (276,496)
- - (250,000)(250,000)(541,131)
- 321,800321,800 - -
- 321,80071,800(250,000)(817,627)
(87,725)494,149 453,996 (469,726)(815,519)
6,030,8195,320,94921,327,20221,796,9282,238,012
$5,943,094$5,815,098$21,781,198$21,327,202$1,422,493
The accompanying notes are an integral part of these financial statements.
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2014
With comparative totals for the year ended December 31, 2013
Business-Type Activities - Enterprise Funds
LiquorWater
Cash flows from operating activities:
Receipts from customers and users$4,824,887$2,849,739
Receipts from interfund services provided - -
Payment to suppliers(4,019,612)(823,890)
Payment to employees(536,612)(800,692)
Operating contribution - -
Net cash flows from operating activities268,6631,225,157
Cash flows from noncapital financing activities:
Operating grants - -
Transfers out(250,000) -
Net cash flows from noncapital financing activities(250,000)0
Cash flows from capital and related
financing activities:
Acquisition of capital assets(79,701)(730,998)
Capital grants - -
Principal received on special assessments - -
Insurance reimbursement12,201 -
Principal paid on revenue bonds -(520,000)
Interest and paying agent fees on revenue bonds -(198,322)
Net cash flows from capital
and related financing activities(67,500)(1,449,320)
Cash flows from investing activities:
Investment income(346)83,748
Net increase (decrease) in cash and cash equivalents(49,183)(140,415)
Cash and cash equivalents - January 1191,8443,411,592
Cash and cash equivalents - December 31$142,661$3,271,177
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $190,671$202,276
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation48,520729,276
Operating contribution - -
Changes in assets and liabilities:
Decrease (increase) in receivables37,900(63,978)
Decrease (increase) in prepaid items - -
Decrease (increase) in inventories(28,961)165,403
Increase (decrease) in payables20,533192,180
Total adjustments77,9921,022,881
Net cash provided by operating activities$268,663$1,225,157
The accompanying notes are an integral part of these financial statements.
Exhibit A-8
Governmental
Activities -
Business-Type Activities - Enterprise Funds
Internal Service
Funds
SewerStorm WaterTotals
20142013
$4,336,974$517,023$12,528,623$12,286,173$ -
- - - - 257,928
(3,973,252)(72,943)(8,889,697)(8,628,676)(257,236)
(754,039)(250,100)(2,341,443)(2,301,359)12,728
- - - 50,000 -
(390,317)193,9801,297,4831,406,13813,420
118,827 - 118,8271,000 -
- - (250,000)(250,000)(541,131)
118,8270(131,173)(249,000)(541,131)
(192,219)(593,031)(1,595,949)(435,169) -
- 321,800321,800 - -
- 33,26233,2622,531 -
- - 12,20124,66312,801
(30,000)(20,000)(570,000)(654,637) -
(14,300)(10,838)(223,460)(243,739) -
(236,519)(268,807)(2,022,146)(1,306,351)12,801
27,54337,303148,248(53,346)69,166
(480,466)(37,524)(707,588)(202,559)(445,744)
1,534,2911,465,0116,602,7386,805,2973,019,699
$1,053,825$1,427,487$5,895,150 $6,602,738 $2,573,955
($220,170)$112,372$285,149($9,100)($79,859)
321,262235,7971,334,8551,336,051 -
- - - 50,000 -
(417,518)(182,676)(626,272)5,15110,674
- - - 298,009 -
- - 136,442(356,760) -
(73,891)28,487167,30982,78782,605
(170,147)81,6081,012,334 1,415,238 93,279
($390,317)$193,980$1,297,483$1,406,138$13,420
The accompanying notes are an integral part of these financial statements.
Exhibit A-9
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF FIDUCIARY NET POSITION
December 31, 2014
With comparative amounts for December 31, 2013
20142013
Assets:
Cash and investments$3,536$ -
Receivables:
Accounts3,1243,099
Total assets$6,660$3,099
Liabilities:
Due to other governments$6,660$3,099
The accompanying notes are an integral part of these financial statements.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
1. Summary of Significant Accounting Policies
The City of Fridley, Minnesota was incorporated July 1, 1949, under Chapter 410.03 of the Statutes of the
State of Minnesota providing for a council-manager form of government under the “Home Rule Charter
City” concept. The City provides the following services as authorized by its charter: general
administrative services, public safety (police and fire), public improvements, planning and zoning, and
culture and recreation.
The financial statements of the City of Fridley, Minnesota have been prepared in conformity with
generally accepted accounting principles as applied to governmental units by the Governmental
Accounting Standards Board (GASB). The following is a summary of the significant accounting policies.
A. Financial Reporting Entity
As required by generally accepted accounting principles, the financial statements of the
reporting entity include those of the City of Fridley, Minnesota (the primary government) and its
component units. The component units discussed below are included in the City's reporting
entity because of the significance of their operational or financial relationships with the City.
Component Units
In conformity with generally accepted accounting principles, the financial statements of the
component units have been included in the financial reporting entity as discretely presented
component units.
Discretely Presented Component Unit - The Fridley Housing and Redevelopment Authority
(HRA) is governed by commissioners appointed by the Fridley City Council. The HRA is
responsible for providing housing and redevelopment assistance to the City and its residents.
Funding for the various programs administered by the HRA is provided through the issuance of
tax increment revenue bonds and general obligation tax increment bonds guaranteed by the
City. Separate financial statements are not prepared for the HRA.
B.Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement
of activities) report information on all of the nonfiduciary activities of the primary government and
its component units. For the most part, the effect of interfund activity has been removed from
these statements.Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which rely to a
significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or business-type activity is offset by program revenues.Direct expenses are those that
are clearly identifiable with a specific function or business-type activity.Program revenues
include 1) charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or business-type activity and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular
function or business-type activity. Taxes and other items not included among program revenues
are reported instead as general revenues.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the government considers all revenues, except reimbursement
grants, to be available if they are collected within 60 days of the end of the current fiscal period.
Reimbursement grants are considered available if they are collected within one year of the end of
the current fiscal period. Expenditures generally are recorded when a liability is incurred, as
under accrual accounting. However, debt service expenditures, as well as expenditures related
to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and
interest associated with the current fiscal period are all considered to be susceptible to accrual
and so have been recognized as revenues of the current fiscal period. Only the portion of special
assessments receivable due within the current fiscal period is considered to be susceptible to
accrual as revenue of the current period. All other revenue items are considered to be
measurable and available only when cash is received by the government.
The government reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
TheDebt Service Fund services debt on the general obligation improvement bonds that were
issued to finance construction of public improvements. Special assessment improvements
are paid for completely or in part by property owners deemed to have benefited from such
improvements.
TheStreet Improvements Fund is used to account for repairs and replacements of city
streets and street related equipment such as signs and street lights.
The government reports the following major proprietary funds:
TheLiquor Fund accounts for operations of the municipal liquor stores.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
TheWater Fund accounts for the water service charges which are used to finance the water
system operating expenses.
TheSewer Fund accounts for the sewer service charges which are used to finance the
sanitary sewer system operating expenses.
TheStorm Water Fund accounts for storm sewer charges which are used to finance the
storm sewer operating expenses.
Additionally, the government reports the following fund types:
Internal Service Funds are used to account for employee fringe benefits, insurance
deductibles and maintenance and upgrading of information systems that are provided on a
cost reimbursement or fee basis to departments or agencies within the City. These funds
are essential for segregating costs for determining the total cost of providing a service and
for assuring that the goods and services provided are properly utilized.
Agency Funds are used to account for monies on behalf of the Six Cities Watershed District
and the North Metro Convention and Tourism Bureau.
As a general rule the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are transactions that would be treated as
revenues, expenditures or expenses if they involved external organizations, such as buying
goods and services or payments in lieu of taxes, are similarly treated when they involve other
funds of the City of Fridley. Elimination of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as
general revenues rather than as program revenues. Likewise, general revenues include all
taxes.
Proprietary funds distinguish operatingrevenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund’s principal ongoing operations. The
principal operating revenues of the liquor, water, sewer and storm water enterprise funds are
charges to customers for sales and services.Operating expenses for enterprise funds include
the cost of sales and services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
When both restricted and unrestricted resources are available for an allowable use, it is the
government’s policy to use restricted resources first, then unrestricted resources as they are
needed.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
D. Budgets
The City Charter grants the City Council full authority over the financial affairs of the City. The
City Manager is charged with the responsibility of preparing the estimates of the annual budget
and the enforcement of the provisions of the budget as specified in the City Charter. Upon
adoption of the annual budget resolution by the Council, it becomes the formal appropriation
budget for City operations. All budget adjustments must be approved by the Council. Budgets
for the General, Special Revenue and Capital Improvement Capital Projects Funds are adopted
on a basis consistent with accounting principles generally accepted in the United States of
America. Budgeted expenditure appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for
the expenditure of monies are recorded in order to reserve that portion of the appropriation, is
not employed by the City because it is, at present, not considered necessary to assure effective
budgetary control or to facilitate effective cash management.
E. Legal Compliance Budgets
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Manager submits to the City Council a proposed operating budget for the fiscal
year commencing the following January 1. The operating budget includes expenditures
and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution.
4. The City Council may authorize transfer of budgeted amounts between departments within
any fund.
5. Reported budget amounts are as originally adopted or as amended by Council approved
transfers. The City Charter limits appropriations to the total estimated revenues and fund
balances. If actual revenues exceed the original estimates, appropriations may be
increased by the Council up to the amount of revenue increases.
6. All budget amounts lapse at the end of the year to the extent they have not been expended
or encumbered. Encumbrances are reappropriated into the following year’s budget.
7. Annual budgets are legally adopted for the General Fund and for the following Special
Revenue Funds; Cable TV Fund, Grant Management Fund, Solid Waste Abatement Fund,
and the Springbrook Nature Fund. Formal budgeting integration is employed as a
management control device during the year for each of these funds. Formal budgetary
integration is not employed for Debt Service Funds because effective budgetary control is
achieved through the bond indenture provisions. Budgetary control for other Capital
Projects Funds is accomplished through the use of project controls.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
8. As required by the City Charter, budgetary control is maintained within department at the
level of three major categories of expenditures: personal services, supplies and other
charges; and capital outlay. This is the level of control at which expenditures may not
legally exceed appropriations.
9. The General Fund budget includes prior year encumbrances which were reappropriated to
the current year. Expenditures for the items encumbered are included in the current year’s
expenditures.
F. Cash and Investments
Cash balances from all funds are combined and invested to the extent available in certificates of
deposit, U.S. government securities and other securities authorized by State Statute. Investment
income is allocated to the respective funds on the basis of applicable cash balance participation
by each fund. Investments are stated at fair value, based upon quoted market prices as of the
balance sheet date. Investment income is accrued at the balance sheet date.
The City provides temporary advances to funds that have insufficient cash balances by means of
an advance from another fund shown as interfund receivables in the advancing fund, and an
interfund payable in the fund with the deficit, until adequate resources are received. These
interfund balances are eliminated on the government-wide financial statements.
For purposes of the statement of cash flows the City considers all highly liquid investments with a
maturity of three months or less when purchased to be cash equivalents. All of the cash and
investments allocated to the proprietary funds have original maturities of 90 days or less.
Therefore the entire balance in the Proprietary Funds is considered cash equivalents.
Restricted cash balances relate to unspent bond proceeds.
Investments are stated at fair value, based upon quoted market prices, except for investments in
2a7-like external investment pools, which are stated at amortized cost. Investment income is
accrued at the balance sheet date.
G. Receivables and Payables
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. Short-term interfund loans are classified as “interfund
receivables/payables.” All short-term interfund receivables and payables at December 31, 2014
are planned to be eliminated in 2014. Any residual balances outstanding between the
governmental activities and business-type activities are reported in the government-wide financial
statements as “internal balances.”
Uncollectible property taxes and special assessments are not material and therefore have not
been reported. Because utility bills are considered liens on property, no estimated uncollectible
amounts are established. Uncollectible amounts are not material for other receivables and have
not been reported.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
H. Property Tax Revenue Recognition
The City Council annually adopts a tax levy and certifies it to the County in December
(levy/assessment date) of each year for collection in the following year. The County is
responsible for billing and collecting all property taxes for itself, the City, the local School District
and other taxing authorities. Such taxes become a lien on January 1 and are recorded as
receivables by the City at that date. Real property taxes are payable (by property owners) on
May 15 and October 15 of each calendar year. Personal property taxes are payable by
taxpayers on February 28 and June 30 of each year. These taxes are collected by the County
and remitted to the City on or before July 7 and December 2 of the same year. Delinquent
collections for November and December are received the following January. The City has no
ability to enforce payment of property taxes by property owners. The County possesses this
authority.
Government-Wide Financial Statements
The City recognizes property tax revenue in the period for which the taxes were levied.
Uncollectible property taxes are not material and have not been reported.
Governmental Fund Financial Statements
The City recognizes property tax revenue when it becomes both measurable and available to
finance expenditures of the current period. In practice, current and delinquent taxes and State
credits received by the City in July, December and January are recognized as revenue for the
current year. Taxes collected by the County by December 31 (remitted to the City the following
January) and taxes and credits not received at year end are classified as delinquent and due
from County taxes receivable. The portion of delinquent taxes not collected by the City in
January is fully offset by deferred inflows of resources because they are not available to finance
current expenditures.
I. Special Assessment Revenue Recognition
Special assessments are levied against the benefited properties for the assessable costs of
special assessment improvement projects in accordance with State Statutes. The City usually
adopts the assessment rolls when the individual projects are complete or substantially complete.
The assessments are collectible over a term of years generally consistent with the term of years
of the related bond issue. Collection of annual installments is handled by the County in the same
manner as property taxes. Property owners are allowed to prepay future installments without
interest or prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon
that property until full payment is made or the amount is determined to be excessive by the City
Council or court action. If special assessments are allowed to go delinquent, the property is
subject to tax forfeit sale. Proceeds of sales from tax forfeit properties are remitted to the City in
payment of delinquent special assessments. Pursuant to State Statutes, a property shall be
subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal
recreational land in which event the property is subject to such sale after five years.
Government-Wide Financial Statements
The City recognizes special assessment revenue in the period that the assessment roll was
adopted by the City Council. Uncollectible special assessments are not material and have not
been reported.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Governmental Fund Financial Statements
Revenue from special assessments is recognized by the City when it becomes measurable and
available to finance expenditures of the current fiscal period. In practice, current and delinquent
special assessments received by the City are recognized as revenue for the current year.
Special assessments that are collected by the County by December 31 (remitted to the City the
following January) are also recognized as revenue for the current year. All remaining delinquent,
deferred and special deferred assessments receivable in governmental funds are completely
offset by deferred inflows of resources.
J. Inventories
Governmental Funds
Inventories of the general fund are stated at cost, which approximates market, using the first-in,
first-out (FIFO) method. The primary government does not maintain material amounts of
inventory within the other governmental funds. Inventories of governmental funds are recorded
as expenditures when consumed rather than when purchased.
Proprietary Funds
Liquor fund inventories are valued on the average cost basis. Other proprietary funds inventory
items are expensed at the time they are sold or used (consumption method).
K. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both government-wide and fund financial statements. Prepaid items
are reported using the consumption method and recorded as expenditures/expenses at the time
of consumption.
L. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads,
bridges, sidewalks, and similar items), and intangible assets such as easements are reported in
the applicable governmental or business-type activities columns in the government-wide financial
statements. Capital assets are defined by the government as assets with an initial, individual
cost of more than $5,000 (with the exception of computer equipment) (amount not rounded) and
an estimated useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets are recorded at
estimated fair market value at the date of donation.
In the case of the initial capitalization of general infrastructure assets (i.e., those reported by
governmental activities) the government chose to include all such items regardless of their
acquisition date or amount. The City was able to estimate the historical cost for the initial
reporting of these assets through back-trending (i.e., estimating the current replacement cost of
the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost
of the infrastructure to be capitalized and using an appropriate price-level index to deflate the
cost to the acquisition year or estimated acquisition year).
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase of capital assets of business-type activities is
included as part of the capitalized value of the assets constructed. For the year ended December
31, 2014, no interest was capitalized in connection with construction in progress.
Property, plant and equipment of the primary government, and the component units, are
depreciated using the straight line method over the following estimated useful lives:
Assets
Improvements other than building 20 – 25 years
Buildings and structures 20 – 25 years
Machinery and equipment 5 – 10 years
Infrastructure 25 years
M. Compensated Absences
All liabilities for compensated absences, both current and long-term, for annual leave, severance
and separation pay are accounted for in the Employee Benefit Fund, an Internal Service Fund.
Each year compensated absence expenditures and expenses are recorded in the Governmental
and Proprietary Funds respectively, equivalent to the full amount accrued by fund employees
during the year. These charges are offset by a corresponding transfer of assets from the home
department funds to the Employee Benefit Fund to fund the liability. This liability represents the
maximum possible dilution of Employee Benefit Fund assets by retirements or extended leaves
by employees. The personnel ordinance limits the annual accumulation of benefits that can be
accumulated from year-to-year.
N. Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type statement of
net assets. Bond premiums and discounts are generally immaterial and are expensed in the year
of bond issuance. Material premiums and discounts are deferred and amortized over the life of
the bonds.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing
sources while discounts on debt issuances are reported as other financing uses.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
O. Fund Balance Classifications
In the fund financial statements, governmental funds report fund balance in classifications that
disclose constraints for which amounts in those funds can be spent. These classifications are as
follows:
Nonspendable- consists of amounts that are not in spendable form, such as prepaid items.
Restricted - consists of amounts related to externally imposed constraints established by
creditors, grantors or contributors; or constraints imposed by state statutory provisions.
Committed - consists of internally imposed constraints. These constraints are established by
Resolution of the City Council.
Assigned- consists of internally imposed constraints. These constraints reflect the specific
purpose for which it is the City’s intended use. Pursuant to City Council Resolution, the City
Manager and/or the Finance Director are authorized to establish assignments of fund
balance.
Unassigned - is the residual classification for the general fund and also reflects negative
residual amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the City’s policy to first
use restricted resources, and then use unrestricted resources as they are needed.
When committed, assigned or unassigned resources are available for use, it is the City’s policy to
use resources in the following order; 1) committed 2) assigned and 3) unassigned.
P. Interfund Transactions
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made
from it that are properly applicable to another fund, are recorded as expenditures/expenses in the
reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Interfund loans are reported as an interfund loan receivable or payable which offsets the
movement of cash between funds. All other interfund transactions are reported as transfers.
Q. Use of Estimates
The preparation of financial statements in accordance with generally accepted accounting
principles (GAAP) requires management to make estimates that affect amounts reported in the
financial statements during the reporting period. Actual results could differ from such estimates.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
R. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section
for deferred outflows of resources. This separate financial statement element, deferred outflows
of resources, represents a consumption of net position that applies to a future period(s) and so
willnot be recognized as an outflow of resources (expense/expenditure) until then. The
government has no items that qualify for reporting in this category.
In addition to liabilities, the statement of financial position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element, deferred
inflows of resources, represents an acquisition of net position that applies to a future period(s)
and so will not be recognized as an inflow of resources (revenue) until that time. The
government has one type of item, which arises only under a modified accrual basis of accounting,
that qualifies for reporting in this category.Accordingly, the item, unavailable revenue, is
reported only in the governmental fund balance sheet. The governmental funds report
unavailable revenues from the following sources: property taxes and special assessments.
S. Reconciliation of Government-Wide and Fund Financial Statements
1. Explanation of certain differences between the governmental fund balance sheet and the
government-wide statement of net position
The governmental fund balance sheet includes reconciliation between fund balance – total
governmental funds and net position – governmental activities as reported in the
government-wide statement of net position. One element of that reconciliation explains that
“long-term liabilities, including bonds payable, are not due and payable in the current period
and therefore are not reported in the funds”. The details of this ($6,193,757) difference are
as follows:
Bonds payable($5,530,000)
Accrued interest payable(71,852)
Other post employment benefits payable(591,905)
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities($6,193,757)
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
2. Explanation of certain differences between the governmental fund statement of revenues,
expenditures and changes in fund balances and the government-wide statement of activities
The governmental fund statement of revenues, expenditures and changes in fund balances
includes reconciliation between net changes in fund balances – total governmental funds and
changes in net position of governmental activities as reported in the government-wide
statement of activities. One element of that reconciliation explains that “governmental funds
report capital outlays as expenditures. However, in the statement of activities the cost of
those assets is allocated over their estimated useful lives and reported as depreciation
expense”. The details of this ($806,138) difference are as follows:
Net book value of capital asset disposals($50,957)
Capital outlay1,290,008
Capital outlay recorded as other current expenditures105,763
Depreciation expense(2,150,952)
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities($806,138)
Another element of that reconciliation states that “revenues on the statement of activities that
do not provide current financial resources are not reported as revenues in the funds”. The
details of this $121,353 difference are as follows:
Unavailable revenue - general property taxes:
At December 31, 2013($206,387)
At December 31, 2014173,026
Unavailable revenue - special assessments:
At December 31, 2013(2,102,332)
At December 31, 20142,252,671
Unavailable revenue - interest on loan to HRA:
At December 31, 2013 -
At December 31, 20144,375
Net adjustments to increase net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities$121,353
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Another element of that reconciliation states that “the issuance of long-term debt (e.g., bonds,
leases) provides current financial resources to governmental funds, while the repayment of
the principal on long-term debt consumes the current financial resources of governmental
funds”. Neither transaction, however, has any effect on net position. The details of this
$1,150,000 difference are as follows:
Principal repayments:
G.O. Improvement bonds$1,150,000
T. Restricted Assets
Cash balances in the Water and Sewer Enterprise Funds were restricted at December 31, 2013
for unspent bond proceeds. There were no restricted cash balances at December 31, 2014.
U. Reclassifications
Certain amounts presented in the prior year data have been reclassified in order to be consistent
with the current year’s presentation.
V. Comparative Totals
The basic financial statements, required supplementary information, combining and individual
fund financial statements and schedules, and supplementary financial information include certain
prior-year summarized comparative information in total but not at the level of detail required for a
presentation in conformity with generally accepted accounting principles. Accordingly, such
information should be read in conjunction with the City’s financial statements for the year ended
December 31, 2013, from which the summarized information was derived.
2. Deposits and Investments
A.Deposits
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks
authorized by the City Council, all of which are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or
collateral. The market value of collateral pledged must equal 110% of the deposits not covered
by insurance or bonds.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the
City Treasurer or in a financial institution other than that furnishing the collateral. Authorized
collateral includes the following:
a) United States government treasury bills, treasury notes, treasury bonds;
b) Issues of United States government agencies and instrumentalities as quoted by a
recognized industry quotation service available to the government entity;
c) General obligation securities of any state or local government with taxing powers which is
rated “A” or better by a national bond rating service, or revenue obligation securities of any
state or local government with taxing powers which is rated “AA” or better by a national bond
rating service;
d) Unrated general obligation securities of a local government with taxing powers may be
pledged as collateral against funds deposited by that same local government entity:
e) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality
accompanied by written evidence that the bank’s public debt is rated “AA” or better by
Moody’s Investors Service, Inc. or Standard & Poor’s Corporation; and
f) Time deposits that are fully insured by any Federal agency.
Custodial Credit Risk – Deposits: Custodial credit risk is the risk that in the event of a bank
failure, the City’s deposits may not be returned to it. State Statutes require that insurance, surety
bonds or collateral protect all City deposits. The market value of collateral pledged must equal
110% of deposits not covered by insurance or bonds. As of December 31, 2014, the bank
balance of the City’s deposits was covered by federal depository insurance or covered by
perfected collateral pledged and held in the City’s name.
B. Investments
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its
instrumentalities or organizations created by an act of congress, excluding mortgage-backed
securities defined as high risk.
b) Shares of investment companies registered under the Federal Investment Company Act of
1940 and whose only investments are in securities described in (a) above, general obligation
tax-exempt securities, or repurchase or reverse repurchase agreements.
c) Obligations of the State of Minnesota or any of its municipalities as follows:
1) any security which is a general obligation of any state or local government with taxing
powers which is rated “A” or better by a national bond rating service;
2) any security which is a revenue obligation of any state or local government with taxing
powers which is rated “AA” or better by a national bond rating service; and
3) a general obligation of the Minnesota housing finance agency which is a moral obligation
of the State of Minnesota and is rated “A” or better by a national bond rating agency.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve
System.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the
highest quality, and maturing in 270 days or less.
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal
Reserve System with capitalization exceeding $10,000,000; a primary reporting dealer in
U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota
securities broker-dealers; or, a bank qualified as a depositor.
g) General obligation temporary bonds of the same governmental entity issued under section
429.091, subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6.
As of December 31, 2014 the City had the following investments and maturities:
Investment Maturities (in Years)
FairLessOver
Investment TypeRatingValueThan 11-56-1010 Years
Federal Farm Credit Bank$1,491,195$ - $ - $1,491,195$ -
AAA
Federal Home Loan BankAAA8,296,558 - 5,991,3322,305,226 -
Federal National Mortgage AssociationAAA2,485,355 - 2,485,355 - -
Federal Home Loan Mortgage CorporationAAA1,571,423 - 995,555575,868 -
Local government bondsA-AA5,693,2672,889,9852,096,092707,190 -
Brokered CDsN/R2,837,8631,114,3551,723,508 - -
Money marketN/R8,404,2568,404,256 - - -
Total$30,779,917$12,408,596$13,291,842$5,079,479$0
Total investments$30,779,917
Deposits1,426,144
Petty cash4,850
Total cash and investments$32,210,911
Following is a reconciliation to the City’s cash and investment balances as of December 31, 2014:
Cash and investments - primary government:
Governmental and business-type (statement A-1)$32,207,375
Restricted cash business-type (statement A-1) -
Fiduciary (statement A-9)3,536
$32,210,911
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
As of December 31, 2014 the HRA had the following investments and maturities:
Investment Maturities (in Years)
FairLessOver
Investment TypeRatingValueThan 11-56-1010 Years
United States Treasury BondAAA$136,762$136,762$ - $ - $ -
Federal National Mortgage AssociationAAA1,143,151 - 742,043401,108 -
FICO StripsAAA1,008,199 - 1,008,199 - -
Federal Home Loan BankAAA477,427 - 477,427 - -
Aaa - A
Local government bonds2,192,982957,5991,235,383 - -
1
Money marketN/R3,154,2883,154,288 - - -
Total$8,112,809$4,248,649$3,463,052$401,108$0
Total investments$8,112,809
Deposits859,070
Total cash and investments$8,971,879
C. Investment Risks
Custodial credit risk – investments – For investments in securities, custodial credit risk is the risk
that in the event of failure of the counterparty to a transaction, the City will not be able to recover
the value of its investment securities that are in the possession of an outside party. Investments
in investment pools and money markets are not evidenced by securities that exist in physical or
book entry form, and therefore are not subject to custodial credit risk disclosures. The City policy
is to limit its exposure by holding investments in securities with a major bank’s corporate trust
department. Investments are delivered to the City’s trust account and then payment is released
to the broker-dealer.
Interest rate risk – Interest rate risk is the risk that changes in interest rates of debt investments
could adversely affect the fair value of an investment. The City’s investment policy requires the
City to diversify its investment portfolio to eliminate the risk of loss resulting from over
concentration of assets in a specific maturity. The policy also states the City’s investment
portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which
might be reasonably anticipated.
– Credit risk is the risk that an issuer or other counterparty to an investment will be
Credit Risk
unable to fulfill its obligation to the holder of the investment. State law limits investments to
commercial paper to those rated in the highest quality category by at least two nationally
recognized rating agencies; in any security of the State of Minnesota or any of its municipalities
which is rated “A” or better by a national bond rating service for general obligation and rated “AA”
or better for a revenue obligation; a general obligation of the Minnesota Housing Finance Agency
to those rated “A” or better by a national bond rating agency; mutual funds or money market
funds whose investments are restricted to securities described in MS 118A.04. The City’s
investment policy does not place further restrictions on investment options.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Concentration of credit risk (City) – Concentration of credit risk is the risk of loss that may be
attributed to the magnitude of a government’s investment in a single issuer. The City places no
limit on the amount the City may invest in any one issuer. Investments in a single issuer
exceeding 5% of the City’s overall investment portfolio are in various holdings as follows:
Federal Home Loan Bank26.95%
Federal Home Loan Mortgage Corporation5.11%
Federal National Mortgage Association8.07%
Concentration of credit risk (HRA) – Concentration of credit risk is the risk of loss that may be
attributed to the magnitude of a government’s investment in a single issuer. The HRA places no
limit on the amount the HRA may invest in any one issuer. Investments in a single issuer
exceeding 5% of the HRA’s overall investment portfolio are in various holdings as follows:
Federal Home Loan Bank5.88%
Federal National Mortgage Association14.09%
FICO Strips12.43%
Local government bonds:
Baltimore MD11.80%
Greenville SC7.28%
3. Receivables
Significant receivables balances not expected to be collected within one year of December 31, 2014 are
as follows:
Primary Government
Major Funds
StreetNonmajor
GeneralDebt ServiceImprovementsFundsTotal
Special assessments receivable$33,434$903,263$ - $852,228$1,788,925
Delinquent property taxes129,82511,969 - 4,306146,100
$163,259$915,232$0$856,534$1,935,025
HRA Component Unit
Major Funds
RevolvingGeneral
LoanFundTotal
Mortgage receivable$1,007,194$ - $1,007,194
Allowance for uncollectible accounts(74,427) - (74,427)
Delinquent tax increment - 5,8775,877
$932,767$5,877$938,644
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
4. Unavailable Revenues
Governmental funds report deferred inflows of resources in connection with receivables that are not
considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year,
the various components of unavailable revenue reported in the governmental funds were as follows:
PropertySpecial Interest on
TaxesAssessmentsLoan to HRATotal
Major funds:
General$153,575$42,101$ - $195,676
Debt Service13,5691,137,4184,3751,155,362
Street Improvements113996,359 - 996,472
Nonmajor5,76976,793 - 82,562
Total unavailable revenue$173,026$2,252,671$4,375$2,430,072
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
5. Capital Assets
Capital asset activity for the year ended December 31, 2014 was as follows:
BeginningEnding
Primary GovernmentBalanceIncreasesDecreasesBalance
Governmental activities:
Capital assets, not being depreciated:
Land$2,841,516$ - ($27,500)$2,814,016
Construction in progress6,294188,994195,288
Total capital assets, not being depreciated2,847,810188,994(27,500)3,009,304
Capital assets, being depreciated:
Buildings and structures8,042,12012,255 - 8,054,375
Machinery and equipment9,486,193860,274(528,403)9,818,064
Improvements6,393,005334,248(23,964)6,703,289
Infrastructure33,150,978 - - 33,150,978
Total capital assets, being depreciated57,072,2961,206,777(552,367)57,726,706
Less accumulated depreciation for:
Buildings and structures6,806,762244,861 - 7,051,623
Machinery and equipment6,713,993698,735(504,946)6,907,782
Improvements4,627,869345,180(23,964)4,949,085
Infrastructure21,248,985862,176 - 22,111,161
Total accumulated depreciation39,397,6092,150,952(528,910)41,019,651
Total capital assets being depreciated - net17,674,687(944,175)(23,457)16,707,055
Governmental activities capital assets - net$20,522,497($755,181)($50,957)$19,716,359
BeginningEnding
Primary GovernmentBalanceIncreasesDecreasesBalance
Business-type activities:
Capital assets, not being depreciated:
Land$306,477$ - $ - $306,477
Construction in progress33,838391,391(8,987)416,242
Total capital assets, not being depreciated340,315391,391(8,987)722,719
Capital assets, being depreciated:
Buildings and structures3,262,99643,565 - 3,306,561
Improvements other than buildings14,682,34649,960 - 14,732,306
Machinery and equipment3,019,328517,740(223,622)3,313,446
Infrastructure24,067,839602,280 - 24,670,119
Total capital assets, being depreciated45,032,5091,213,545(223,622)46,022,432
Less accumulated depreciation for:
Buildings and structures1,875,33379,096 - 1,954,429
Improvements other than buildings8,205,630544,578 - 8,750,208
Machinery and equipment2,616,663146,164(223,622)2,539,205
Infrastructure14,101,958565,01714,666,975
Total accumulated depreciation26,799,5841,334,855(223,622)27,910,817
Total capital assets being depreciated - net18,232,925(121,310)018,111,615
Business-type activities capital assets - net$18,573,240$270,081($8,987)$18,834,334
Component unit:
Capital assets, not being depreciated:
Land$2,023,511$0$0$2,023,511
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government$326,251
Public safety336,190
Public works, including depreciation of general infrastructure assets1,307,302
Park and recreation181,209
Total depreciation expense - governmental activities$2,150,952
Business-type activities:
Liquor$48,520
Water729,276
Sewer321,262
Storm water235,797
Total increases in accumulated depreciation$1,334,855
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
6. Long-Term Debt
The City issues general obligation bonds to provide funds for the acquisition and construction of major
capital facilities. The reporting entity’s long-term debt is segregated between the amounts to be repaid
from governmental activities and amounts to be repaid from business-type activities.
As of December 31, 2014, the governmental long-term bonded debt and loans of the financial reporting
entity consisted of the following:
Governmental Activities:
$1,915,000 General Obligation Improvement Bonds, Series 2008A due in varying annual
installments of $165,000 - $225,000 through February 1, 2019; interest at 2.95% - 4.00%.$1,040,000
$1,910,000 General Obligation Improvement Bonds, Series 2007A due in varying annual
installments of $155,000 - $230,000 through August 1, 2018; interest at 3.50% - 3.85%.860,000
$1,215,000 General Obligation Improvement Bonds, Series 2010C due in varying annual
installments of $55,000 - $135,000 through February 1, 2021; interest at 2.00% - 3.00%.820,000
$1,805,000 General Obligation Improvement Bonds of 2005 due in varying annual installments of
$155,000 - $210,000 through February 1, 2016; interest at 2.80% - 3.750%.410,000
$2,505,000 General Obligation Improvement Bonds of 2006 due in varying annual installments
of $205,000 - $305,000 through February 1, 2017; interest at 4.00%.870,000
$550,000 General Obligation Equipment Certificates, Series 2010B due in varying annual
installments of $50,000 - $70,000 through February 1, 2020; interest at 2.00% - 3.00%385,000
$1,280,000 General Obligation Equipment Certificates, Series 2012A due in varying annual
installments of $135,000 - $150,000 through February 1, 2022; interest at 1.00% - 1.65%1,145,000
Subtotal governmental activities$5,530,000
Business-Type Activities:
$1,180,000 General Obligation Water Revenue Bonds of 1998, due in varying annual
installments of $90,000 - $130,000 through February 1, 2011.-$
$1,790,000 General Obligation Water Revenue Bonds of 2004 due in varying annual installments
of $50,000 - $230,000 through February 1, 2019; interest at 2.50% - 4.00%.1,045,000
$1,005,000 General Obligation Water and Storm Water Revenue Bonds of 2004 due in varying
annual installments of $160,000 - $235,000 through February 1, 2012; interest at 2.00% - 3.25%. -
$3,725,000 General Obligation Water Revenue Bonds of 2008B due in varying
annual installments of $240,000 - $315,000 through February 1, 2023; interest at 2.95% - 4.50%.2,415,000
$2,810,000 General Obligation Utility Revenue Bonds of 2010A due in varying annual
installments of $160,000 - $265,000 through February 1, 2026; interest at 2.50% - 3.50%2,385,000
Unamortized discount(1,482)
Subtotal business-type activities5,843,518
Total primary government$11,373,518
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Annual debt service requirements to maturity for general obligation bonds and loans are as follows:
Primary Government
Governmental ActivitiesBusiness-Type Activities
Year EndingG.O. ImprovementG.O. Equipment CertificatesRevenue Bonds
December 31,PrincipalInterestPrincipalInterestPrincipalInterest
2015$990,000$129,815$200,000$23,080$585,000$203,060
20161,030,000 92,090 200,000 20,330 610,000 181,610
2017855,000 56,360 205,000 17,205 625,000 159,191
2018570,000 29,503 205,000 13,855 655,000 135,623
2019355,000 12,450 210,000 10,371 680,000 110,748
2020135,000 3,975 215,000 6,570 465,000 89,585
202165,000 975 145,0003,526490,000 72,080
2022 - - 150,0001,238505,000 53,688
2023 - - - - 530,000 34,125
2024 - - - - 225,000 20,281
2025 - - - - 235,000 12,513
2026 - - - - 240,000 4,200
Total$4,000,000$325,168$1,530,000$96,175$5,845,000$1,076,704
Long-term liability activity for the year ended December 31, 2014, was as follows:
BeginningEndingDue Within
BalanceAdditionsReductionsBalanceOne Year
Governmental activities:
Bonds payable:
G.O. improvement bonds$4,955,000$ - ($955,000)$4,000,000$990,000
G.O. equipment certificates1,725,000 - (195,000)1,530,000200,000
Total bonds payable6,680,0000(1,150,000)5,530,0001,190,000
Compensated absences962,960673,535(601,072)1,035,423846,137
Total government activity
long-term debt$7,642,960$673,535($1,751,072)$6,565,423$2,036,137
Business-type activities:
Bonds payable:
G.O. revenue bonds$6,413,154$ - ($569,636)$5,843,518$585,000
Compensated absences are generally liquidated by the Employee Benefits Fund. All long-term bonded
indebtedness outstanding at December 31, 2014 is backed by the full faith and credit of the City,
including improvement and revenue bond issues. Delinquent assessments receivable at December 31,
2014 totaled $32,465.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Revenues Pledged
Revenue PledgedCurrent Year
Percent ofDebt servicePrincipalPledged
Use oftotalas a % ofTerm ofRemainingand InterestRevenue
Bond IssueProceedsTypedebt servicenet revenuesPledgePrincipalpaidreceived
2012ACapital EquipmentProperty Taxes100%2013-$1,145,000$149,405$ -
2022
2010BCapital EquipmentProperty Taxes100%2011-385,00071,250232,727
2020
2010CStreet ImprovementsProperty Taxes and100%2011-820,000140,15087,907
Special Assessments2021
2008AStreet ImprovementsProperty Taxes and100%2008-1,040,000230,300191,332
Special Assessments2019
2007AStreet ImprovementsProperty Taxes and100%2007-860,000231,049205,729
Special Assessments2018
2006AStreet ImprovementsProperty Taxes and100%2007-870,000305,100243,088
Special Assessments2017
2005AStreet ImprovementsProperty Taxes and100%2006-410,000213,636204,758
Special Assessments2016
Water, Sewer and
2010A Utility Revenue BondsInfrastructure improvementsStorm Customer100%2.84%2011-2,385,000237,4258,367,908
Net Revenue2026
2008B Water Revenue BondsInfrastructure improvementsWater Customer100%11.26%2008-2,415,000328,1972,913,717
Net Revenue2023
2004 Water Revenue BondsInfrastructure improvementsWater Customer100%7.82%2004-1,045,000227,8362,913,717
Net Revenue2019
7. Defined Benefit Pension Plans-Statewide
A. Plan Description
All full-time and certain part-time employees of the City are covered by defined benefit plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the General Employees Retirement Fund (GERF) and the Public Employees Police
and Fire Fund (PEPFF), which are cost-sharing, multiple-employer retirement plans. These
plans are established and administered in accordance with Minnesota Statutes, Chapters 353
and 356.
GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan
members are covered by Social Security and Basic Plan members are not. All new members
must participate in the Coordinated Plan. All police officers, firefighters and peace officers who
qualify for membership by statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to
survivors upon death of eligible members. Benefits are established by State Statute, and vest
after five years of credited service. The defined retirement benefits are based on a member’s
highest average salary for any five successive years of allowable service, age, and years of
credit at termination of service.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for GERF and PEPFF.That report may be obtained on the internet at
www.mnpera.org, by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088
or by calling (651)296-7460 or 1-800-652-9026.
B. Funding Policy
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These
statutes are established and amended by the state legislature. The City makes annual
contributions to the pension plans equal to the amount required by state statutes. GERF Basic
Plan members and Coordinated Plan members were required to contribute 9.10% and 6.25%,
respectively, of their annual covered salary in 2014. PEPFF members were required to
contribute 10.2% of their annual covered salary in 2014. The City was required to contribute the
following percentages of annual covered payroll in 2014: 11.78% for Basic Plan members,
7.25% for Coordinated Plan members, and 15.3% for PEPFF members. The City’s contributions
to the General Employees Retirement Fund for the years ending December 31, 2014, 2013 and
2012 were $422,495, $411,511, and $397,492, respectively. The City’s contributions to the
Public Employees Police and Fire Fund for the years ending December 31, 2014, 2013 and 2012
were $570,446, $503,700, and $501,259, respectively. The City’s contributions were equal to the
contractually required contributions for each year as set by state statute. Contribution rates will
increase on January 1, 2015 in the Coordinated Plan (6.5% for members and 7.5% for
employers) and in the Police and Fire Fund (10.8% for members and 16.2% for employers).
C. Public Employees Retirement Association (PERA) - Defined Contribution
Plan Description
All council members of the City of Fridley are covered by a defined contribution pension plan
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the Public Employees Defined Contribution Plan (PEDCP) which is a multiple-
employer deferred compensation plan.
Benefit Provisions and Contribution Rates
The PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all
contributions by or on behalf of employees are tax deferred until time of withdrawal.
Plan benefits depend solely on amounts contributed to the plan plus investment income, less
administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions,
including the employee and employer contribution rates for those qualified personnel who elect to
participate. An eligible elected official who decides to participate contributes 5 percent of salary
which is matched by the elected official's employer. For ambulance service personnel, employer
contributions are determined by the employer, and for salaried employees must be a fixed
percentage of salary. Employer contributions for volunteer personnel may be a unit value for
each call or period of alert duty. Employees who are paid for their services may elect to make
member contributions in an amount not to exceed the employer share. Employer and employee
contributions are combined and used to purchase shares in one or more of the seven accounts of
the Minnesota Supplemental Investment Fund.For administering the plan, PERA receives 2
percent of employer contributions and twenty-five hundredths of one percent of the assets in
each member's account.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Total contributions made by the City during fiscal year 2014 were:
Percentage of
AmountCovered PayrollRequired
EmployeesEmployerEmployeesEmployerRates
PEDCP$2,139$2,1395.00%5.00%5.00%
8. Defined Contribution Pension Plan - Fridley Volunteer Firefighters Relief Association
Plan Description
The Fridley Volunteer Firefighters Relief Association (Association), is a single employer public
employee retirement system that acts as a common investment administrator for all of the City’s
firefighters. Pursuant to a 1987 amendment to its by-laws, the pension plan is a defined contribution
plan, prior to 1987 the pension plan was a defined benefit pension plan.
Benefits and contribution requirements are established by Association’s by-laws and can be
amended by the Association’s Board of Trustees with approval from the City of Fridley, Minnesota.
All provisions are within limitations established by Minnesota Statutes.
Type of Benefit
The exclusive pension provided by the Association is a “Defined Contribution Lump Sum Service
Pension,” as defined in Minnesota Statutes §424A.02, Subdivision 4.
Contribution Made
The City collected and remitted $142,002 and $143,739 in State Aid to the Association for 2014 and
2013, respectively. This transaction is recorded as revenue and expenditures in the City’s financial
statements.
During 2014 and as of December 31, 2014, the Association held no securities issued by the City
or other related parties.
9. Other Post-Employment Benefits
A. Plan Description
In addition to providing the pension benefits described in Note 6, the City provides post-
employment health care benefits (as defined in paragraph B) for retired employees and police
and firefighters disabled in the line of duty, through a single-employer defined benefit plan. The
termPlan refers to the City’s requirement by State Statute to provide retirees with access to
health insurance. The OPEB plan is administered by the City. The authority to provide these
benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a, and 299A.465. The
benefits, benefit levels, employee contributions and employer contributions are governed by the
City and can be amended by the City through its personnel manual and collective bargaining
agreements with employee groups. The Plan is not accounted for as a trust fund, an irrevocable
trust has not been established to account for the Plan. The Plan does not issue a separate
report.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
B. Benefits Provided
Retirees
The City is required by State Statute to allow retirees to continue participation in the City’s group
health insurance plan if the individual terminates service with the City through service retirement
or disability retirement. Covered spouses may continue coverage after the retiree’s death. The
surviving spouse of an active employee may continue coverage in the group health insurance
plan after the employee’s death.
All health care coverage is provided through the City’s group health insurance plans. The retiree
is required to pay 100% of their premium cost for the City-sponsored group health insurance plan
in which they participate. The premium is a blended rate determined on the entire active and
retiree population. Since the projected claims costs for retirees exceed the blended premium
paid by retirees, the retirees are receiving an implicit rate subsidy (benefit). The coverage levels
are the same as those afforded to active employees. Upon a retiree reaching age 65 years of
age, Medicare becomes the primary insurer.
The monthly retiree premiums effective January 1, 2014 were:
SingleMarried
Regular and Dental$752$2,166
HRA and Dental5701,642
HSA and Dental5381,551
C. Participants
As of the actuarial valuation dated January 1, 2014, participants consisted of:
Retired participants and beneficiaries
currently receiving benefits -
Active employees66
Waiving Coverage60
Total126
Participating employers1
D. Funding Policy
The additional cost of using a blended rate for actives and retirees is currently funded on a pay-
as-you-go basis. The City Council may change the funding policy at any time.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
E. Annual OPEB Costs and Net OPEB Obligation
The City’s annual other post employment benefit (OPEB) cost is calculated based on the annual
required contribution (ARC) of the employer, an amount actuarially determined in accordance
with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if
paid on an ongoing basis, is projected to cover normal cost each year and amortize any
unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The net
OPEB obligation as of December 31, 2014, was calculated as follows:
Annual required contribution (ARC)$63,278
Interest on net OPEB obligation24,638
Adjustment to ARC(35,621)
Annual OPEB cost52,295
Contributions made during the year(3,149)
Increase in net OPEB obligation49,146
Net OPEB obligation - beginning of year615,953
Net OPEB obligation - end of year$665,099
For the governmental activities, other post employment benefits are generally liquidated through
the General Fund.
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan and
the net OPEB obligation for 2012 to 2014 was as follows:
Percentage of
Fiscal YearAnnual OPEBEmployer Annual OPEB CostNet OPEB
EndedCostContributionsContributedObligation
December 31, 2012$60,780$31,53551.9%$591,319
December 31, 201361,82937,19660.2%615,953
December 31, 201452,2953,1496.0%665,099
F. Funded Status and Funding Progress
The City currently has no assets that have been irrevocably deposited in a trust for future health
benefits; therefore, the actuarial value of assets is zero. The funded status of the Plan was as
follows:
Unfunded
ActuarialActuarialUAAL as a
ActuarialActuarialAccruedAccruedFundedCoveredPercentage of
ValuationValue of AssetsLiability (AAL)*Liability (UAAL)RatioPayrollCovered Payrol
Date(a)(b)(b-a)(a/b)(c) ( (b-a) / c)
anuary 1, 2014$ - $494,791$494,7910.0%n/an/a
J
*Using the projected unit credit actuarial cost method.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
G. Actuarial Methods and Assumptions
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality and the health care cost trend. Amounts
determined regarding the funded status of the plan and the annual required contributions (ARC)
of the employer are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The schedule of funding progress,
presented as required supplementary information following the notes to financial statements,
presents multi-year trend information that shows whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan members to that point. The actuarial methods and assumptions
used include techniques that are designed to reduce the effect of short-term volatility in actuarial
accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of
the calculations.
In the January 1, 2014 actuarial valuation, the Projected Unit Credit Actuarial cost method was
used. The actuarial assumptions included a 4.0% investment rate of return (net of administrative
expenses) and an initial annual health care cost trend rate of 7.5% reduced by 0.31% each year
to arrive at an ultimate health care cost trend rate of 5.0%, which includes a 3% inflation
assumption. The actuarial value of assets was $0. The plan’s unfunded actuarial accrued
liability is being amortized as a level dollar amount over a 30-year open period. The remaining
amortization period at December 31, 2014, was 30 years.
10. Interfund Receivables, Payables and Transfers
Interfund payables and receivables are representative of lending/borrowing arrangements to
cover deficit cash balances at the end of the fiscal year. Interfund receivables and payables of
the City are as follows:
InterfundInterfund
ReceivablesPayables
Due From/Due To:
Major Funds:
General Fund$97,712$ -
Nonmajor Governmental Funds:
Special Revenue Funds:
Police Activity Fund - 97,712
$97,712$97,712
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Interfund receivables and payables of the HRA component unit at December 31, 2014 are as
follows:
InterfundInterfund
ReceivablesPayables
Due From/Due To:
General Fund$5,546,931$ -
Capital Projects Funds:
Lake Pointe - 325,303
Gateway East - 641,653
Gateway West - 580,109
57th Avenue Redevelopment - 20,760
Gateway Northeast - 3,388,173
#20 BAE - 33,000
#20 - BAE Hazardous Subs - 545,933
#22 Northstar - 12,000
$5,546,931$5,546,931
The above balances are not expected to be eliminated within one year of December 31, 2014.
Interfund Transfers:
Transfer InTransfer Out
Governmental Funds:
Major Funds:
General Fund (1) (4) (5) (6)$672,865$175,000
Special Assessment Debt Service (1) - 350,000
Street Improvements (2)2,971,88041,000
Nonmajor Funds (2) (3) (5) (6) (7) (8)4,608,8716,896,485
Total governmental funds8,253,6167,462,485
Internal Service Funds:
Info Systems (3) - 541,131
Proprietary Funds:
Liquor (4) - 250,000
Total$8,253,616$8,253,616
(1) Transfer of $350,000 to finance General Fund
(2) Transfer to close out the Capital Improvement Fund and to form the Building, Street,
and Park Improvements Funds
(3) Transfer to close out to Information Systems Improvements Fund
(4) Annual transfer to finance General Fund
(5) Transfer of PERA Police dollars to Information Systems Improvements Fund
(6) Transfer to close out Section 8 Fund to the General Fund
(7) Transfer to close the 2009 Street Fund into the 2011 Street Fund
(8) Transfer from Park Improvements Fund to Special Assessment Construction Capital Projects
for prior year expenses reimbursement
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
During 2014, the HRA Component Unit had a transfer of $1,000,000 related to the advance of
funds from the Gateway Northeast Fund to the Onan Fund as well as a transfer of $1,000,000
from the Housing Loan Fund to the General Fund to support fund HRA initiatives. Interfund
transfers allow the City and HRA to allocate financial resources to the funds that receive benefit
from services provided by another fund. Most of the interfund transfers fall under that category.
11. Fund Balance
A. CLASSIFICATIONS
At December 31, 2014, a summary of the governmental fund balance classifications are as
follows:
DebtStreetOtherTotalComponent
General FundServiceImprovementsGovernmentalCityUnit
Nonspendable:
Inventory$60,123$ - $ - $ - $60,123$ -
Mortgage loan receivable - - - - - 933,012
Total nonspendable60,12300060,123933,012
Restricted for:
Donations15,176 - - - 15,176 -
Debt service - 1,912,374 - - 1,912,374 -
Tax increment - - - - - 547,206
Cable television equipment - - - 72,64072,640 -
Police forfeitures - - - 86,24586,245 -
Total restricted15,1761,912,3740158,8852,086,435547,206
Committed to:
Cable televitsion programming - - - 1,388,3231,388,323 -
Recycling programs - - - 86,74486,744 -
Nature Center activities - - - 117,157117,157 -
Public improvements - - - 591,610591,610 -
Capital equipment - - - 382,267382,267 -
Housing loan program - - - - - 2,026,346
Total committed0002,566,1012,566,1012,026,346
Assigned to:
Capital improvements - 5,636,1742,814,5873,498,79411,949,555 -
Total assigned05,636,1742,814,5873,498,79411,949,5550
Unassigned8,242,331 - - (97,712)8,144,6194,612,587
Total$8,317,630$7,548,548$2,814,587$6,126,068$24,806,833$8,119,151
B. MINIMUM UNASSIGNED FUND BALANCE POLICY
The City Council has formally adopted a policy regarding the minimum unassigned fund balance
for the General Fund. The most significant revenue source of the General Fund is property
taxes. This revenue source is received in two installments during the year – June and
December. As such, it is the City’s goal to begin each fiscal year with sufficient working capital to
fund operations between each semi-annual receipt of property taxes. The City’s policy for
unassigned funds in the General Fund is equal to 35% - 50% of the following year General Fund
expenditures.
At December 31, 2014, the unassigned fund balance of the General Fund was $8,242,331,
compared to its targeted unassigned fund balance of between $5,312,615 and $7,589,450.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
12. Tax Increment Districts
The HRA is the administering authority for the following Tax Increment Districts:
FiscalRetained
YearTax Capacity ValuesDisparityBy
EstablishedDistrictDistrict NameCurrentOriginalCapturedAdjustmentsAuthority
19856 Lake Pointe$837,624$326,940$510,684$ - $510,684
19899 Onan/Old Central Ave336,813 42,902 293,911 - 293,911
199211 University/Osborne75,428 26,478 48,950 - 48,950
199212 McGlynn's66,042 41,254 24,788 - 24,788
199513 Satellite Lane Apartments29,187 1,438 27,749 - 27,749
199716 57th Ave Replacement25,538 7,301 18,237 - 18,237
200017 Gateway East26,813 3,468 23,345 - 23,345
200718 Gateway West12,241 3,390 8,851 - 8,851
200719 Main Street158,464 45,628 112,836 - 112,836
201320 TIF 20 HSS 20A276,119 - 276,119 - 276,119
1995HR1/Q2Housing Replacement1,557 191 1,366 - 1,366
1995HR1/Q3Housing Replacement1,199 236 963 - 963
1995HR1/Q4Housing Replacement4,104 469 3,635 - 3,635
1995HR1/S3Housing Replacement1,543 310 1,233 - 1,233
1995HR1/S4Housing Replacement1,768 338 1,430 - 1,430
1995HR1/S5Housing Replacement1,215 225 990 - 990
1995HR1/S6Housing Replacement1,297 266 1,031 - 1,031
1995HR1/V6Housing Replacement1,664 488 1,176 - 1,176
1995HR1/T7Housing Replacement488 384 104 - 104
1995HR1/V9Housing Replacement1,417 286 1,131 - 1,131
1995HR1/W1Housing Replacement1,174 357 817 - 817
1995HR1/W2Housing Replacement1,179 286 893 - 893
3,835
1995HR1/W6Housing Replacement4,351 516 3,835 -
1995HR1/W7Housing Replacement 1,707 284 1,423 - 1,423
1995HR1/X2Housing Replacement 3,558 3,674 (116)116 -
Totals$1,872,490$507,109$1,365,381$116$1,365,497
13. Commitments and Contingencies
A. Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. During 1987, the City
established the Self Insurance Fund (an Internal Service Fund) to account for and finance its
uninsured risks of loss.
Workers compensation coverage is provided through a pooled self-insurance program through
the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to
the LMCIT. The City is subject to supplemental assessments if deemed necessary by the
LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA)
as required by law. For workers compensation, the City is subject to a $2,500 deductible.
Property and casualty insurance coverage is provided through a pooled self-insurance program
through LMCIT. The City pays an annual premium to the LMCIT. The City is subject to
supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through
commercial companies for claims in excess of various amounts. For property (other than
vehicles for which the City is self-insured) and casualty coverage, the City has a $75,000
deductible per occurrence with a $150,000 annual maximum. This deductible gets paid out of the
Self-Insurance Fund as necessary.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
The City continues to carry commercial insurance for all other risks of loss, including employee
health and disability insurance.
There were no significant reductions in insurance from the previous year or settlements in excess
of insurance coverage for any of the past three fiscal years.
In 1990, the General Fund contributed $1,000,000 to the Self Insurance Fund in lieu of the Self
Insurance Fund charging losses back to each fund.
There is no recorded liability for unpaid claims because the amount of such claims, if any, is
considered to be immaterial.
As of December 31, 2014, the Self Insurance Fund has accumulated equity in the amount of
$1,351,807 to cover future claims and losses.
B. Litigation
The City attorney has indicated that existing and pending lawsuits, claims and other actions in
which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the
judgment of the City attorney, remotely recoverable by plaintiffs.
C. Federal and State Funds
The City receives financial assistance from federal and state governmental agencies in the form
of grants. The disbursement of funds received under these programs generally requires
compliance with the terms and conditions specified in the grant agreements and are subject to
audit by the grantor agencies. Any disallowed claims resulting from such audits could become a
liability of the applicable fund. However, in the opinion of management, any such disallowed
claims will not have a material effect on any of the financial statements of the individual fund
types included herein or on the overall financial position of the City at December 31, 2014.
D. Tax Increment Districts
The City’s tax increment districts are subject to review by the State of Minnesota Office of the
State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability
of the applicable fund. Management has indicated that they are not aware of any instances of
noncompliance which would have a material effect on the financial statements.
E. Contingent Liability
The HRA entered into various limited tax increment revenue notes with developers whereby the
HRA shall pay the developers the lesser of the scheduled payment or 90% of available tax
increment. Whether a payment will occur, and if so, the amount of the payment(s) are uncertain
since all payments are dependent on the HRA receiving tax increments from the developer’s
project. As such, this liability has not been recorded in the financial statements.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
The HRA has issued various Tax Increment Revenue Notes. These notes are not a general
obligation of the HRA and are payable solely from available tax increments. Accordingly, these
notes are not reflected in the financial statements of the HRA. A schedule of outstanding notes at
December 31, 2014 is as follows:
Original InterestMaturity
NotePrincipalRateDate
Medtronic$20,000,0006.75%August 1, 2025
TIF #191,500,0007.00%February 1, 2025
Hazardous Substance4,500,0003.50%June 1, 2033
F. Construction Commitments
At December 31, 2014, the City had construction project contracts in progress. The commitments
related to the remaining contract balances amounted to $358,254.
14. Leases
A. Lease Expense
The City leases space for one of its liquor stores. Total costs for this lease was $126,778 for the
year ended December 31, 2014. The future minimum lease payments for this lease are as
follows:
Year Ending
December 31,Amount
2015$126,778
2016126,778
2017126,778
2018105,649
Total$485,983
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
B. Lease Revenue
The City receives revenue from agreements for the lease of space above its water towers to
communication companies. The space is used for antennas and other equipment necessary to
provide radio communications. For accounting purposes, the leases are considered operating
leases. Lease revenue for the year ended December 31, 2014, totaled $308,579. Terms of each
lease are as follows:
Next
Annual Lease(passive)
Annual LeaseRenewal Renewal TermFinal Lease
Lessee / LocationAdjustment Factor*DateDurationDate
T-Mobile - TH65 Tower #2Greater of 3% or CPI-U12/31/20165 Years31-Dec-16
TTM - Commons Tower #1Greater of 4% or CPI-U11/17/20195 Years17-Nov-34
TTM - TH65 Tower #2Greater of 4% or CPI-U11/17/20195 Years17-Nov-34
Clearwire - Commons Tower #1Greater of 4% or CPI-U2/22/20205 Years22-Feb-35
AT&T - Marion HillsGreater of 5% or CPI-U7/1/20155 Years1-Jul-25
T-Mobile - Commons Tower #1Greater of 2% or CPI-U up to 5%3/27/20205 Years28-Mar-30
Verizon - Commons Tower #13%6/6/20185 Years6-Jun-38
Clearwire - Marion HillsGreater of 4% or CPI-U2/22/20205 Years22-Feb-35
Clearwire - TH65 Tower #2Greater of 4% or CPI-U2/22/20205 Years22-Feb-35
T-Mobile - Marion HillsGreater of 2% or CPI-U up to 5%9/30/20165 Years30-Sep-21
Sprint - TH65 Tower #2Greater of 5% or CPI-U10/1/20155 Years1-Oct-25
Crown Castle - Well #13Greater of 5% or CPI-U11/6/20185 Years6-Nov-23
AT&T - Public Works GarageGreater of 5% or CPI-U11/30/20185 Years30-Nov-28
*Amounts for future lease receipts are unavailable because they are based on the
Consumer Price Index.
15. Conduit Debt Obligation
From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to
private-sector entities for the acquisition and construction of industrial and commercial facilities deemed
to be in the public interest. The bonds are secured by the property financed and are payable solely from
payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the
acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the
State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds.
Accordingly, the bonds are not reported as liabilities in the accompanying financial statements.
As of December 31, 2014, there were 32 series of Industrial Revenue Bonds issued. The aggregate
principal amount payable for the eight series issued after July 1, 1995 is $22,255,578. The aggregate
principal amount payable for the twenty-two series issued prior to July 1, 1995, could not be determined;
however, their original issue amounts totaled $65.2 million.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
16. Deficit Fund Balances
At December 31, 2014, individual funds with a deficit fund balance are as follows:
Primary government:
Non major Special Revenue Fund:
Police Activity$97,712
Grant Management
Component unit:
Lake Pointe415,344
Gateway East629,738
Gateway West539,342
57th Avenue Redevelopment9,746
TIF #193,749
Gateway NorthEast3,199,850
#20 BAE32,220
#20 - BAE Hazardous Subs545,066
#22 Northstar11,119
17. Contingent Receivable
In 1999, the HRA entered into an agreement with Medtronic for the sale of land from the HRA to
Medtronic. The original principal amount of the receivable was $5,000,000 and the outstanding balance
at December 31, 2014 is $3,967,316. Interest is added quarterly at a rate of 8.25%. Payments on the
note receivable are made in an amount equal to 11.11% of tax increment note payments received by
Medtronic through 2013, and 22.22% of tax increment note payments receivable from 2013 through
2026.
In 2014, the HRA entered into an agreement with Cielo Partners LLC for the sale of land from the HRA to
Cielo Partners LLC for the sum of $1.00. Per the agreement Cielo Partners LLC is to complete certain
performance obligations to complete the site improvements. If these performance obligations are not met
then Cielo Partners LLC will obligated to pay the HRA for an amount up to $1,700,000. The HRA feels
that these obligations will be met and therefore has chosen not to record a receivable for the sale of land
to Cielo Partners LLC.
18. Recently Issued Accounting Standards
The Governmental Accounting Standards Boards (GASB) recently approved the following statements
which were not implemented for these financial statements:
Statement No. 68
Accounting and Financial Reporting for Pensions – an amendment of GASB
Statement 27. The provisions of this Statement are effective for financial statements for periods
beginning after June 15, 2014. Statement No. 68 requires governments providing defined benefit
pensions to recognize their long-term obligation for pension benefits as a liability for the first time.
CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Statement No. 71
Pension Transition for Contributions Made Subsequent to the Measurement Date
– an amendment of GASB Statement No. 68. The provisions of this Statement should be applied
simultaneously with the provisions of Statement 68.
Statement No. 72
Fair Value Measurement and Application. The provisions of this Statement are
effective for financial statements for periods beginning after June 15, 2015.
The effect these standards may have on future financial statements is not determinable at this time, but it
is expected that Statements No. 68 and No. 71 will have a material impact.
This page intentionally left blank
REQUIRED SUPPLEMENTARY INFORMATION
Exhibit B-1
Page 1 of 4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2014
With comparative actual amounts for the year ended December 31, 2013
2014
Variance with
Final Budget - 2013
Budgeted AmountsActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Taxes and special assessments:
Current ad valorem taxes$10,053,992$10,054,000$10,110,812$56,8129,982,736
Delinquent ad valorem taxes-net of abatements50,00050,000(23,087)(73,087)(223,035)
Penalties and interest25,00025,00023,302(1,698)27,588
Special assessments44,10036,40019,080(17,320)30,765
Total taxes and special assessments10,173,09210,165,40010,130,107(35,293)9,818,054
Licenses and permits:
Licenses:
Rental162,000193,000161,393(31,607)170,781
Business80,40084,40090,6016,20174,956
All other31,00031,00027,775(3,225)29,280
Permits601,800666,300619,728(46,572)583,293
Total licenses and permits875,200974,700899,497(75,203)858,310
Intergovernmental revenue:
Federal grants32,30076,80081,0904,29057,373
State maintenance aid340,000405,400368,477(36,923)361,548
State credits - - - - (47)
Local grants3,5003,5005,5922,0922,110
Other state grants40,200143,70012,923(130,777)33,715
Police and fire pension410,700415,700470,92055,220455,107
Total intergovernmental revenue826,7001,045,100939,002(106,098)909,806
Charges for services:
General government1,567,9001,570,9001,478,890(92,010)1,438,486
Public safety314,210347,000352,8255,825381,745
Public works32,90029,3001,435(27,865)15,560
Community development12,20012,20041,20129,00118,684
Recreation219,500203,300215,41112,111224,943
Total charges for services2,146,7102,162,7002,089,762(72,938)2,079,418
Fines and forfeits163,000190,000179,484(10,516)180,815
Investment income:
Interest and dividends65,00065,00093,40828,40882,066
Net change in the fair market value of investments - - 94,13594,135(115,992)
Total investment income65,00065,000187,543122,543(33,926)
Miscellaneous revenue:
Insurance and other reimbursements84,00080,000112,48432,484106,732
Gambling tax56,00048,00055,6547,65457,788
Donations - 13,40016,9873,58732,230
Miscellaneous15,0001,80014,80713,00766,308
Total miscellaneous revenue155,000143,200199,93256,732263,058
Total revenues14,404,702 14,746,100 14,625,327 (120,773)14,075,535
Exhibit B-1
Page 2 of 4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2014
With comparative actual amounts for the year ended December 31, 2013
2014
Variance with
Final Budget - 2013
Budgeted AmountsActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Expenditures:
General government:
City management:
Mayor and council:
Current:
Personal services$98,543$98,700$98,409$291$96,391
Supplies and other charges31,19631,20029,7881,41227,807
Total mayor and council129,739129,900128,1971,703124,198
City manager:
Current:
Personal services239,333239,300260,897(21,597)175,401
Supplies and other charges102,477102,40064,09138,30981,976
Total city manager341,810341,700324,98816,712257,377
Human resources:
Current:
Personal services195,075195,100196,857(1,757)196,648
Supplies and other charges40,94111,3009,4601,8408,036
Total human resources236,016206,400206,31783204,684
Elections:
Current:
Personal services43,71950,10042,2927,808242
Supplies and other charges8,6068,6006,2552,3455,424
Total elections52,32558,70048,54710,1535,666
City clerk/records:
Personal services92,44392,50095,031(2,531)110,425
Supplies and other charges20,61620,60013,7136,88738,254
Total city clerk/records113,059113,100108,7444,356148,679
Legal:
Current:
Supplies and other charges426,385426,400416,7019,699402,384
Total city management1,299,3341,276,2001,233,49442,7061,142,988
Finance:
Accounting:
Current:
Personal services600,765600,700590,52510,175630,498
Supplies and other charges61,78969,90062,0867,81466,534
Total accounting662,554670,600652,61117,989697,032
Assessing:
Current:
Personal services245,445245,500244,1921,308203,163
Supplies and other charges8,61222,70020,3132,3874,214
Total assessing254,057268,200264,5053,695207,377
MIS:
Current:
Personal services218,152218,200219,657(1,457)222,318
Supplies and other charges55,94051,90051,8821835,208
Total MIS274,092270,100271,539(1,439)257,526
Total finance1,190,7031,208,9001,188,65520,2451,161,935
Nondepartmental:
Current:
Supplies and other charges27,60027,60012,41115,18912,722
Total nondepartmental27,60027,60012,41115,18912,722
Exhibit B-1
Page 3 of 4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2014
With comparative actual amounts for the year ended December 31, 2013
2014
Variance with
Final Budget - 2013
Budgeted AmountsActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Expenditures: (continued)
General government: (continued)
Municipal center:
Current:
Personal services$20,493$20,600$22,474($1,874)$22,703
Supplies and other charges204,268204,300212,833(8,533)205,870
Total municipal center224,761224,900235,307(10,407)228,573
Total general government2,742,3982,737,6002,669,86767,7332,546,218
Public safety:
Police:
Police protection:
Current:
Personal services4,936,5094,985,3005,030,761(45,461)4,817,911
Supplies and other charges539,940584,800548,36936,431522,689
Capital outlay - - - - 9,991
Total police protection5,476,4495,570,1005,579,130(9,030)5,350,591
Civil defense:
Current:
Supplies and other charges20,10019,60011,6637,93720,044
Capital Outlay60,00060,00058,8351,165 -
Total civil defense80,10079,60070,4989,10220,044
Total police5,556,5495,649,7005,649,628725,370,635
Fire:
Fire protection:
Current:
Personal services1,089,1791,137,4001,136,8745261,005,149
Supplies and other charges165,436205,800206,174(374)166,243
Total fire protection1,254,6151,343,2001,343,0481521,171,392
Rental inspections:
Current:
Personal services149,920149,700157,677(7,977)117,593
Supplies and other charges25,17425,70022,6523,0486,622
Total rental inspections175,094175,400180,329(4,929)124,215
Total public safety6,986,2587,168,3007,173,005(4,705)6,666,242
Public works:
Engineering:
Current:
Personal services598,488588,500501,67186,829504,147
Supplies and other charges66,11376,00097,376(21,376)58,830
Capital outlay - - 37,746(37,746)8,636
Total engineering664,601664,500636,79327,707562,977
Public works and parks:
Current:
Personal services1,693,8621,684,6001,689,248(4,648)1,698,387
Supplies and other charges934,058942,900952,524(9,624)1,005,289
Capital outlay - - - - 8,636
Total public works and parks2,627,9202,627,5002,641,772(14,272)2,712,312
Total public works3,292,5213,292,0003,278,56513,4353,275,289
Exhibit B-1
Page 4 of 4
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2014
With comparative actual amounts for the year ended December 31, 2013
2014
Variance with
Final Budget - 2013
Budgeted Amounts
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Expenditures: (continued)
Community development:
Building inspection:
Current:
Personal services$272,657$272,700$267,331$5,369$273,954
Supplies and other charges70,634126,200124,5161,68463,437
Total building inspection343,291398,900391,8477,053337,391
Planning:
Current:
Personal services421,924454,600439,33415,266433,947
Supplies and other charges66,01766,10063,6042,49646,557
Total planning487,941520,700502,93817,762480,504
Total community development831,232919,600894,78524,815817,895
Parks and recreation:
Current:
Personal services626,917626,900599,76927,131589,946
Supplies and other charges270,118296,900276,98519,915257,801
Total parks and recreation897,035923,800876,75447,046847,747
Contingency:
Current:
Supplies and other charges120,000120,000 - 120,000 -
Total expenditures14,869,44415,161,30014,892,976268,32414,153,391
Excess (deficiency) of revenues over
(under) expenditures(464,742)(415,200)(267,649)147,551(77,856)
Other financing sources (uses):
Transfers in673,306673,300672,865(435)641,000
Transfers out(175,000)(175,000)(175,000) - (145,052)
Total other financing sources498,306498,300497,865(435)495,948
Net change in fund balance$33,564$83,100230,216$147,116418,092
Fund balance - January 18,087,4147,669,322
Fund balance - December 31$8,317,630$8,087,414
This page intentionally left blank
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2014
A. BUDGETS
The General Fund budget is legally adopted on a basis consistent with accounting principles
generally accepted in the United States of America. The legal level of budgetary control is at the
expenditure category level.
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS - RETIREE HEALTH PLAN
For The Year Ended December 31, 2014
Unfunded
ActuarialActuarialUAAL as a
ActuarialActuarialAccruedAccruedFundedCoveredPercentage of
ValuationValue of AssetsLiability (AAL)*Liability (UAAL)RatioPayrollCovered Payroll
Date(a)(b)(b-a)(a/b)(c) ( (b-a) / c)
January 1, 2014$ - $494,791$494,7910.0%$8,855,2965.6%
January 1, 2011$ - $616,348$616,3480.0%$8,186,0317.5%
January 1, 2008$ - $1,910,670$1,910,6700.0%$9,303,57620.5%
*Using the projected unit credit actuarial cost method.
Note, the first OPEB actuarial valuation was conducted as of January 1, 2008. There is no data available prior
to the first valuation.
COMBINING AND INDIVIDUAL FUND STATEMENTS AND
SCHEDULES
This page intentionally left blank
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
A Special Revenue Fund accounts for revenues derived from specific taxes or other earmarked
revenue sources. They are usually required by statute or local ordinance and/or resolution to
finance particular functions, activities or governments.
CAPITAL PROJECT FUNDS
The Capital Project Funds are used to account for the resources expended to
acquire permanent or long-term assets.
Exhibit C-1
CITY OF FRIDLEY, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2014
Total Nonmajor Governmental
Special RevenueCapital ProjectFunds
20142013
Assets
Cash and investments$1,662,295$4,587,303$6,249,598$1,731,268
Receivables:
Accounts99,517 - 99,51795,349
Taxes7,7651597,92410,053
Special assessments - 90,74490,74447,559
Due from other governments74,7121,48076,192 -
Total assets$1,844,28$4,679,68$6,523,97$1,884,22
9659
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$43,283$60,303$103,586$57,232
Contracts payable - 69,76069,760 -
Due to other governments599 - 599320
Due to other funds97,712 - 97,71297,712
Salaries payable26,109 - 26,10926,724
Unearned revenue17,579 - 17,57966,415
Total liabilities185,282130,063315,345248,403
Deferred inflows of resources:
Unavailable revenue5,61076,95282,5626,308
Total deferred inflows of resources5,61076,95282,5626,308
Fund balance:
Restricted158,885 - 158,885182,210
Committed1,592,224973,8772,566,1011,545,874
Assigned - 3,498,7943,498,794(98,566)
Unassigned(97,712) - (97,712) -
Total fund balance1,653,3974,472,6716,126,0681,629,518
Total liabilities, deferred inflows
of resources, and fund balance$1,844,289$4,679,686$6,523,975$1,884,229
Exhibit C-2
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2014
With comparative amounts for the year ended December 31, 2013
Special CapitalTotal Nonmajor
RevenueProjectGovernmental Funds
20142013
Revenues:
Taxes$336,374$175,070$511,444$318,634
25,25225,252 -
Special assessments -
Licenses and permits271,868 - 271,868265,325
Intergovernmental revenue267,8191,343,3001,611,119474,220
Charges for services400,57327,727428,300382,886
Fines and forfeits47,438 - 47,43837,379
Investment income:
Interest and dividends16,37221,34637,71820,124
Net change in the fair value of investments20,48765,67086,157(35,683)
Miscellaneous36,79477,690114,48426,284
Total revenues1,397,725 1,736,055 3,133,780 1,489,169
Expenditures:
Current:
General government754,061308,1281,062,189636,910
Public safety51,508 - 51,50863,235
Public works - 16,30716,307 -
Parks and recreation401,792143,859545,651411,839
Capital outlay12,2551,181,1721,193,4271,186,422
Total expenditures1,219,6161,649,4662,869,0822,298,406
Excess (deficiency) of revenues over (under) expenditures178,109 86,589 264,698 (809,237)
Other financing sources (uses):
Proceeds from sale of capital assets - 36,83636,83635,679
Transfers in - 4,608,8714,608,87120,052
Transfers out(51,865)(6,844,620)(6,896,485) -
Total other financing sources (uses)(51,865)(2,198,913)(2,250,778)55,731
Net change in fund balance126,244 (2,112,324)(1,986,080)(753,506)
Fund balance - January 11,527,1536,584,9958,112,1482,383,024
Fund balance - December 31$4,472,671$6,126,068$1,629,518
$1,653,397
Reconciliation of beginning fund balance
to prior year ending fund balance:
Prior year ending fund balance reported above$1,629,518
Add prior year ending fund balance for funds reported
as major in prior year and nonmajor in current year:
Special Assessment Construction Capital Projects579,070
Capital Improvements5,903,560
Current year beginning fund balance$8,112,148
NONMAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues derived from specific taxes or other
earmarked revenue sources. They are usually required by statute, charter provision or local
ordinance to finance particular governmental functions or activities.
Cable TV Fund - This fund receives revenues from the issuance of a franchise agreement with
the cable TV provider. These revenues are used for the operation and maintenance of a
government access channel.
Grant Management Fund – This fund administers grants received from a variety of
intergovernmental agencies, which the amounts are restricted. In most cases, grant funds are
provided on a reimbursement basis following proper documentation of expenditures, however, in
some cases the money is provided in advance to spend on specific activities outlined in the
grant.
Solid Waste Abatement Fund - This fund receives grants, recycling fees and yard waste fees.
These revenues finance the City’s curbside recycling pickup and operation of the yard waste
transfer site.
Drug and Gambling Forfeiture Fund - This fund receives forfeited property in connection with
illegal gambling or drug activity. Pursuant to Minnesota Statutes, the proceeds are disbursed
between the investigating agency and the prosecuting agency.
Police Activity Fund - This fund is used to track the revenue and expenditures of externally
funded police positions.
Springbrook Nature Center Fund - This fund was established in 2005 after a $275,000
referendum supporting the Springbrook Nature Center was approved by the voters in
November of 2004. The revenues from the annual levy are used for the on-going operation of
the nature center and the capital improvement projects required in the park.
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2014
GrantSolid Waste
AssetsCable TVManagementAbatement
Cash and investments$1,405,380$10,548$24,387
Receivables:
Accounts69,10669429,717
Taxes - - -
Due from other governments - 16,11858,594
Total assets$1,474,486$27,360$112,698
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$6,426$8,420$23,112
Due to other governments - - -
Due to other funds - - -
Salaries payable7,0971,3612,842
Unearned revenue - 17,579 -
Total liabilities13,52327,36025,954
Deferred inflows of resources:
Unavailable revenue - - -
Total deferred inflows of resources - - -
Fund balance:
Restricted72,640 - -
Committed1,388,323 - 86,744
Unassigned - - -
Total fund balance1,460,963086,744
Total liabilities, deferred inflows
of resources, and fund balance$1,474,486$27,360$112,698
Exhibit C-3
Drug and Gambling Springbrook Nature
ForfeiturePolice ActivityCenter
Totals Nonmajor Special Revenue Funds
20142013
$88,059$ - $133,921$1,662,295$1,628,903
- - - 99,51795,349
- - 7,7657,76510,053
- - - 74,71247,559
$88,059$0$141,686$1,844,289$1,781,864
$1,814$ - $3,511$43,283$57,232
- - 599599320
- 97,712 - 97,71297,712
- - 14,80926,10926,724
- - - 17,57966,415
1,81497,71218,919185,282248,403
- - 5,6105,6106,308
- - 5,6105,6106,308
86,245 - - 158,885182,210
- - 117,1571,592,2241,443,509
- (97,712) - (97,712)(98,566)
86,245(97,712)117,1571,653,3971,527,153
$88,059$0$141,686$1,844,289$1,781,864
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2014
With comparative totals for the year ended December 31, 2013
GrantSolid Waste
Cable TVManagementAbatement
Revenues:
Taxes$ - $ - $ -
Licenses and permits271,868 - -
Intergovernmental revenue - 187,13180,688
Charges for services1,055 - 287,421
Fines and forfeits - - -
Investment income:
Interest and dividends16,087 - -
Net change in the fair value of investments20,181 - -
Miscellaneous - 6,26721,352
Total revenues309,191193,398389,461
Expenditures:
Current:
General government232,082140,679381,300
Public safety - - -
Parks and recreation - - -
Capital outlay - - -
Total expenditures232,082140,679381,300
Excess (deficiency) of revenues
over (under) expenditures77,10952,7198,161
Other financing sources (uses):
Transfers in - - -
Transfers out - (51,865) -
Total other financing sources (uses)0(51,865)0
Net change in fund balance77,1098548,161
Fund balance - January 11,383,854(854)78,583
Fund balance - December 31$1,460,963$0$86,744
Exhibit C-4
Drug and
GamblingSpringbrook
ForfeiturePolice ActivityNature Center
Totals Nonmajor Special Revenue Funds
20142013
$ - $ - $336,374$336,374$318,634
- - - 271,868265,325
- - - 267,819180,720
- - 112,097400,573382,886
47,438 - - 47,43837,379
- - 28516,37212,293
- - 30620,487(25,401)
- - 9,17536,79418,488
47,4380458,2371,397,7251,190,324
- - - 754,061636,910
51,508 - - 51,50863,235
- - 401,792401,792411,839
12,255 - - 12,25560,980
63,7630401,7921,219,6161,172,964
(16,325)056,445178,10917,360
- - - - 20,052
- - - (51,865) -
000(51,865)20,052
(16,325)056,445126,24437,412
102,570(97,712)60,7121,527,1531,489,741
$86,245($97,712)$117,157$1,653,397$1,527,153
This page intentionally left blank
NONMAJOR CAPITAL PROJECT FUNDS
The Special Assessment Construction Capital Projects Fund - is established to
account for the construction of public improvements, such as residential streets,
sidewalks, and storm sewers or for the provision of services that are to be paid
primarily by the benefited property owner.
Building Improvements Fund - is established to account for repair or replacement
of major buildings or building related improvements.
Park Improvements Fund - is established to account for repair or replacement of
park equipment or park related improvements.
Information System Improvement Fund- is established to account for the
purchase of new equipment and replacement equipment such as computers,
local area and wide area network equipment, printers, peripheral devices,
telecommunications improvements, copiers and software.
The Capital Improvement Fund - is established to provide special accounting for
bond proceeds, grants and contributions designated for the acquisition of capital
assets.
The Capital Equipment Fund - is used to account for the purchase and repair of
major capital equipment.
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2014
Special
AssessmentBuildingPark
AssetsConstructionImprovementsImprovements
Cash and investments$600,579$1,403,894$1,827,680
Receivables:
Taxes - - 159
Special assessments90,744 - -
Due from other governments1,480 - -
Total assets$692,803$1,403,894$1,827,839
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$ - $6,634$12,180
Contracts payable24,400 - 45,360
Total liabilities24,4006,63457,540
Deferred inflows of resources:
Unavailable revenue76,793 - 159
Total deferred inflows of resources76,793 - 159
Fund balance:
Committed591,610 - -
Assigned - 1,397,2601,770,140
Total fund balance591,6101,397,2601,770,140
Total liabilities, deferred inflows
of resources, and fund balance$692,803$1,403,894$1,827,839
Exhibit C-5
Information System
ImprovementCapital Equipment
Totals Nonmajor Capital Project Funds
20142013
$357,301$397,849$4,587,303$102,365
- - 159 -
- - 90,744 -
- - 1,480 -
$357,301$397,849$4,679,686$102,365
$25,907$15,582$60,303$ -
- - 69,760 -
25,90715,582130,0630
- - 76,952 -
- - 76,952 -
- 382,267973,877102,365
331,394 - 3,498,794 -
331,394382,2674,472,671102,365
$357,301$397,849$4,679,686$102,365
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2014
With comparative totals for the year ended December 31, 2013
Special
Assessment
ConstructionBuildingPark
Capital ProjectsImprovementsImprovements
Revenues:
Taxes$ - $ - $70
Special assessments25,252 - -
Intergovernmental revenue132,274500,000100,000
Charges for services21,877 - 3,750
Investment income:
Interest and dividends4836,57010,549
Net change in the fair value of investments1,39515,79232,410
Miscellaneous - - -
Total revenues181,281522,362146,779
Expenditures:
Current:
General government73,16491,304 -
Public works16,307 - -
Parks and recreation - - 143,859
Capital outlay149,85792,12635,545
Total expenditures239,328183,430179,404
Excess (deficiency) of revenues
over (under) expenditures(58,047)338,932(32,625)
Other financing sources (uses):
Proceeds from sale of capital assets - - -
Transfers in941,0601,058,3281,873,352
Transfers out(870,473) - (70,587)
Total other financing sources (uses)70,5871,058,3281,802,765
Net change in fund balance12,5401,397,2601,770,140
Fund balance - January 1579,070 - -
Fund balance - December 31$591,610$1,397,260$1,770,140
Exhibit C-6
Information
SystemCapital
ImprovementImprovementsCapital Equipment
Totals Nonmajor Capital Project Funds
20142013
$ - $ - $175,000$175,070$ -
- - - 25,252 -
- - 611,0261,343,300293,500
2,100 - - 27,727 -
2,445 - 1,29921,3467,831
6,297 - 9,77665,670(10,282)
77,690 - - 77,6907,796
88,5320797,1011,736,055298,845
143,660 - - 308,128 -
- - - 16,307 -
- - - 143,859 -
329,609 - 574,0351,181,1721,125,442
473,2690574,0351,649,4661,125,442
(384,737)0223,06686,589(826,597)
- - 36,83636,83635,679
716,131 - 20,0004,608,871 -
- (5,903,560) - (6,844,620) -
716,131(5,903,560)56,836(2,198,913)35,679
331,394(5,903,560)279,902(2,112,324)(790,918)
- 5,903,560102,3656,584,995893,283
$331,394$0$382,267$4,472,671$102,365
Reconciliation of beginning fund balance
to prior year ending fund balance:
Prior year ending fund balance reported above$102,365
Add prior year ending fund balance for funds reported
as major in prior year and nonmajor in current year:
Special Assessment Construction Capital Projects579,070
Capital Improvements5,903,560
Current year beginning fund balance$6,584,995
This page intentionally left blank
INDIVIDUAL BUDGET TO ACTUAL STATEMENTS
SPECIAL REVENUE FUNDS
Exhibit D-1
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - CABLE TV FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2014
With comparative actual amounts for the year ended December 31, 2013
20142013
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Licenses - franchise fee$272,000$273,000$271,868$265,325
Charges for services8007001,055700
Investment income:
Interest and dividends15,00010,00016,08711,358
Net change in the fair value of investments - - 20,181(24,975)
Total revenues287,800 283,700 309,191 252,408
Expenditures:
Current:
General government:
Personal services183,698194,300193,187152,008
Supplies and other charges19,21540,00038,89518,812
Total expenditures202,913 234,300 232,082 170,820
Excess (deficiency) of revenues over (under) expenditures$84,887$49,40077,10981,588
Fund balance - January 11,383,8541,302,266
Fund balance - December 31$1,460,963$1,383,854
Exhibit D-2
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - SPRINGBROOK NATURE CENTER FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2014
With comparative actual amounts for the year ended December 31, 2013
20142013
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Taxes$339,300$339,300$336,374$318,634
Intergovernmental revenue:
Local grant - - - 3,263
Charges for service94,20089,200112,097101,144
Investment income:
Interest and dividends - - 285935
Net change in the fair value of investments - - 306(426)
Miscellaneous - 9,0009,17510,110
Total revenues433,500437,500458,237433,660
Expenditures:
Current:
Parks, recreation and naturalist
Personal services325,275325,400327,738334,127
Supplies and other charges83,62292,40074,05477,712
Capital outlay - - - 60,980
Total expenditures408,897 417,800 401,792 472,819
Excess (deficiency) of revenues
over (under) expenditures$24,603$19,70056,445(39,159)
Fund balance - January 160,71299,871
Fund balance - December 31$117,157$60,712
Exhibit D-3
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - GRANT MANAGEMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2014
With comparative actual amounts for the year ended December 31, 2013
2014
2013
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Intergovernmental:
Federal grants$79,306$74,500$74,754$103,529
State grants - 112,400112,3779,889
Miscellaneous3,0148,3006,267305
Total revenues82,320 195,200 193,398 113,723
Expenditures:
Current:
Community development:
Personal services24,56426,40024,502101,828
Supplies and other charges3,450116,000116,17712,749
Total expenditures28,014 142,400 140,679 114,577
Excess (deficiency) of revenues over
(under) expenditures54,30652,80052,719(854)
Other financing sources:
Transfers out(54,306)(51,900)(51,865) -
Net change in fund balance$0$900854 (854)
Fund balance - January 1(854) -
Fund balance - December 31$0($854)
Exhibit D-4
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - SOLID WASTE ABATEMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2014
With comparative actual amounts for the year ended December 31, 2013
20142013
Budgeted AmountsActualActual
OriginalFinalAmountsAmounts
Revenues:
Intergovernmental revenue:
State$75,000$76,000$80,688$64,039
Charges for services281,279300,400287,421281,042
Miscellaneous3,3007,30021,3527,573
Total revenues359,579 383,700 389,461 352,654
Expenditures:
Current:
General government:
Personal services66,72954,30055,70750,796
Supplies and other charges308,887334,200325,593300,717
Total expenditures375,616 388,500 381,300 351,513
Excess (deficiency) of revenues
over (under) expenditures(16,037)(4,800)8,1611,141
Other financing sources:
Transfers in - - - 20,052
Net change in fund balance($16,037)($4,800)8,16121,193
Fund balance - January 178,58357,390
Fund balance - December 31$86,744$78,583
This page intentionally left blank
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for goods and services that are
provided on a cost reimbursement or fee basis to departments or agencies within
the City. These funds are essential for segregating costs for determining the
total cost of providing a service and for assuring that the goods and services
provided are properly utilized. These funds are accounted for on a capital
maintenance measurement focus and use the accrual basis of accounting.
Employee Benefits Fund – This fund is used to account for the expenses
associated with providing fringe benefits for employees.
Self-Insurance Fund – This fund is used to account for all revenues and
expenses associated with the $50,000 deductible in the City’s general liability
policy.
Information Systems Fund – This fund is used to account for all revenues and
expenses associated with maintaining and upgrading the City’s computerized
information systems.
Exhibit E-1
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31, 2014
With comparative totals for December 31, 2013
EmployeeSelfInformation
BenefitsInsuranceSystems
Totals
Assets:20142013
Current assets:
Cash and investments$1,222,461$1,351,494$ - $2,573,955$3,019,699
Accounts receivable - - - - 8,822
Due from component unit69 - - 692,427
Due from other governments - 506 - 506 -
Total current assets1,222,5301,352,00002,574,5303,030,948
Capital assets, at cost:
Machinery and equipment - - - - 1,471,090
Less: accumulated depreciation - - - - (1,194,594)
Net capital assets0000276,496
Total assets1,222,5301,352,00002,574,5303,307,444
Liabilities:
Current liabilities:
Accounts payable180172 - 3527,482
Due to other governments - - - - 999
Payroll deductions payable116,24121 - 116,26297,991
Compensated absences payable -
current portion846,137 - - 846,137776,529
Total current liabilities962,5581930962,751883,001
Noncurrent liabilities:
Compensated absences payable189,286 - - 189,286186,431
Total liabilities1,151,84419301,152,0371,069,432
Net position:
Net investment in capital assets - - - - 276,496
Unrestricted70,6861,351,807 - 1,422,4931,961,516
Total net position$70,686$1,351,807$0$1,422,493$2,238,012
Exhibit E-2
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For The Year Ended December 31, 2014
With comparative totals for the year ended December 31, 2013
EmployeeSelfInformationIntra-Activity
BenefitsInsuranceSystemsEliminations
Totals
20142013
Operating revenues:
Charges for services$76,751$170,503$ - $ - $247,254$213,335
Operating expenses:
Personal services78,006 - - - 78,00667,207
Supplies and other charges1,722247,385 - - 249,107227,482
Depreciation - - - - - 147,354
Total operating expenses79,728247,38500327,113442,043
Operating income (loss)(2,977)(76,882)00(79,859)(228,708)
Nonoperating revenues:
Investment income:
Interest and dividends12,95815,671 - - 28,62925,424
Net change in the fair value of investment19,00621,531 - - 40,537(56,772)
s
Insurance reimbursement - 12,801 - - 12,8018,889
Total nonoperating revenues31,96450,0030081,967(22,459)
Income (loss) before transfers28,987(26,879)002,108(251,167)
Other financing sources (uses):
Loss on disposal of capital assets - - (276,496) - (276,496) -
Transfers in - - - - - 125,000
Transfers out - - (541,131) - (541,131) -
Total other financing sources (uses) - - (817,627) - (817,627)125,000
Change in net position28,987(26,879)(817,627)0(815,519)(126,167)
Net position - January 141,6991,378,686817,627 - 2,238,0122,364,179
Net position - December 31$70,686$1,351,807$0$0$1,422,493$2,238,012
Exhibit E-3
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For The Year Ended December 31, 2014
With comparative totals for the year ended December 31, 2013
EmployeeSelfInformation
BenefitsInsuranceSystems
Totals
20142013
Cash flows from operating activities:
Receipts from interfund services provided$79,109$178,819$ - $257,928$202,155
Payment to suppliers(1,943)(253,125)(2,147)(257,215)(222,192)
Payment to employees12,707 - - 12,707(69,222)
Net cash flows from operating activities89,873(74,306)(2,147)13,420(89,259)
Cash flows from noncapital financing activities:
Transfer in - - - - 250,000
Transfer out - - (541,131)(541,131)(125,000)
Net cash flows from
noncapital financing activties00(541,131)(541,131)125,000
Cash flows from capital and related
financing activities:
Acquisition of capital assets - - - - (72,617)
Insurance reimbursement - 12,801 - 12,8018,889
Net cash flows from capital and
and related financing activities 012,801012,801(63,728)
Cash flows from investing activities:
Investment income31,96437,202 - 69,166(31,348)
Net increase (decrease) in cash and
cash equivalents121,837(24,303)(543,278)(445,744)(59,335)
Cash and cash equivalents - January 11,100,6241,375,797543,2783,019,6993,079,034
Cash and cash equivalents - December 31$1,222,461 $1,351,494 $0 $2,573,955 $3,019,699
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) ($2,977)($76,882)$ - ($79,859)($228,708)
Adjustments to reconcile operating income
(loss) to net cash flows from operating
activities:
Depreciation - - - - 147,354
Changes in assets and liabilities:
Decrease (increase) in receivables2,3588,316 - 10,674(11,180)
Increase (decrease) in payables90,492(5,740)(2,147)82,6053,275
Total adjustments92,850 2,576 (2,147)93,279 139,449
Net cash provided by operating activities$89,873($74,306)($2,147)$13,420($89,259)
HOUSING AND REDEVELOPMENT AUTHORITY
COMPONENT UNIT
CITY OF FRIDLEY, MINNESOTA
BALANCE SHEET - GOVERNMENTAL FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
December 31, 2014
GeneralHousing LoanLake PointeOnan
Assets
Cash and investments$5,903,368$2,026,739$201,692$53,745
Receivables:
Accounts67,935 - - -
Taxes8,058 -4535,269
Mortgage:
Deferred - 1,007,194 - -
Allowance for uncollectible accounts -(74,427) - -
Interest44,933 - - -
Due from other funds5,546,931 - - -
Prepaid expenses245 - - -
Land held for resale3,436,605 -87,750 -
Total assets$15,008,075$2,959,506$289,895$59,014
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$ - $393$291,773$ -
Due to primary government1,566,054 - - -
Due to other funds - - 325,303 -
Total liabilities1,566,054393617,0760
Deferred inflows of resources:
Unavailable revenue3,443,015 - 88,1634,606
Total deferred inflows of resources3,443,015 - 88,1634,606
Fund balance (deficit):
Nonspendable245932,767 - -
Restricted - - - 54,408
Committed - 2,026,346 - -
Unassigned9,998,761 - (415,344) -
Total fund balance (deficit)9,999,0062,959,113(415,344)54,408
Total liabilities, deferred inflows
of resources, and fund balance$15,008,075$2,959,506$289,895$59,014
Exhibit F-1
Housing#20A-BAEOther
ReplacementGatewayHazardousGovernmentalIntra - Activity
Gateway West#1NorthEast #20 BAESubsFundsEliminationsTotals Governmental Funds
20142013
$40,767$57,134$188,323$780$950$498,381$ - $8,971,879$9,896,629
- - - - - - - 67,93550,543
- - - - 1,2211,643 - 16,64416,953
-
- - - - - - - 1,007,194955,065
- - - - - - - (74,427)(55,164)
- - - - - - - 44,93358,633
- - - - - - (5,546,931) - 7,005,931
- - - - - - - 245750
38,160349,334 - - - - - 3,911,8493,547,925
$78,927$406,468$188,323$780$2,171$500,024($5,546,931)$13,946,252$21,477,265
$ - $318$ - $ - $646$43,740$ - $336,870$373,833
- - - - - - - 1,566,054125,431
580,109 - 3,388,17333,000545,933674,413(5,546,931) - 7,005,931
580,1093183,388,17333,000546,579718,153(5,546,931)1,902,9247,505,195
38,160349,334 - - 658241 - 3,924,1773,564,878
38,160349,334 - - 658241 - 3,924,1773,564,878
- - - - - - - 933,012900,651
- 56,816 - - - 435,982 - 547,2061,264,931
- - - - - - - 2,026,3463,027,312
(539,342) - (3,199,850)(32,220)(545,066)(654,352) - 4,612,5875,214,298
(539,342)56,816(3,199,850)(32,220)(545,066)(218,370)08,119,15110,407,192
$78,927$406,468$188,323$780$2,171$500,024($5,546,931)$13,946,252$21,477,265
Fund balance reported above$8,119,151$10,407,192
Amounts reported for governmental activities in the statement of net
position are different because:
Capital assets used in governmental activities are not financial
resources, and therefore, are not reported in the funds2,023,5112,023,511
Other long-term assets are not available to pay for current-period
expenditures and, therefore, reported as unavailable revenue3,924,1773,564,878
Net position of governmental activities$14,066,839$15,995,581
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
For The Year Ended December 31, 2014
With comparative totals for the year ended December 31, 2013
GeneralHousing LoanLake PointeOnanGateway West
Revenues:
Tax increment$ - $ - $650,497$288,673$8,171
Property taxes380,010 - - - -
Investment income:
Interest and dividends23,56121,749 - 6,041604
Net change in the fair value of investments9,87212,2651,0375,683413
Mortgage interest earnings - 37,154 - - -
Rental9,600 - - - -
Intergovernmental1,531,35311,696 - - -
Sale of real estate129,609 - - - 87,318
Miscellaneous124,75611,708 - - -
Total revenues2,208,76194,572651,534300,39796,506
Expenditures:
Personal services138,846 - - - -
Supplies and other charges335,13163,42235,69330,9814,642
Capital outlay2,627,917 - - - -
Developer assistance1,531,353 - 583,299 - -
Interest expense4,375 - - - -
Total expenditures4,637,62263,422618,99230,9814,642
Excess (deficiency) of revenues over
(under) expenditures(2,428,861)31,15032,542269,41691,864
Other financing sources:
Transfers in1,000,000 - - - -
Transfers out - (1,000,000) - (1,000,000) -
Total other financing sources (uses)1,000,000(1,000,000)0(1,000,000)0
Net change in fund balance(1,428,861)(968,850)32,542(730,584)91,864
Fund balance (deficit) - January 111,427,8673,927,963(447,886)784,992(631,206)
Fund balance (deficit) - December 31$9,999,006$2,959,113($415,344)$54,408($539,342)
Exhibit F-2
Housing#20A-BAEOther
ReplacementGatewayHazardousGovernmentalIntra-Activity
#1NorthEast #20 BAESubsFundsElminations
Totals Governmental Funds
20142013
$22,510$ - $ - $350,173$253,139$ - $1,573,163$998,241
- - - - - - 380,010373,036
4,8331,208 - - 2,416 - 60,41246,564
2,7837,568 - - 1,651 - 41,272(51,864)
- - - - - - 37,15440,214
- - - - - - 9,6009,603
- - - - - - 1,543,049 -
64,360 - - - - - 281,287278,737
- - - - - - 136,464139,898
94,4868,7760350,173257,20604,062,4111,834,429
- - - - - - 138,846122,629
18,89877,914 - 68,16338,072 - 672,916646,384
162,910 - - - - - 2,790,827726,117
- - - 540,94487,892 - 2,743,488729,786
- - - - - - 4,375 -
181,80877,9140609,107125,96406,350,4522,224,916
(87,322)(69,138)0(258,934)131,2420(2,288,041)(390,487)
- 1,000,000 - - - (1,000,000)1,000,000 -
- - - - - 1,000,000(1,000,000) -
01,000,000000000
(87,322)930,862 - (258,934)131,242 - (2,288,041)(390,487)
144,138(4,130,712)(32,220)(286,132)(349,612) - 10,407,19210,797,679
$56,816($3,199,850)($32,220)($545,066)($218,370)$0$8,119,151$10,407,192
Amounts reported for governmental activities in the statement of activities
(Exhibit A-2) are different because:
Net changes in fund balances - total above($2,288,041)($390,487)
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.359,299166,922
Changes in net position of governmental activities (Exhibit A-2)($1,928,742)($223,565)
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
December 31, 2014
With comparative totals for December 31, 2013
GatewayUniversity / McGlynn
EastOsborneBakeries
Assets
Cash and investments$11,915$237,586$96,061
Taxes receivable - 92 -
Total assets$11,915$237,678$96,061
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$ - $ - $ -
Due to other funds641,653 - -
Total liabilities641,653 0 0
Deferred inflows of resources:
Unavailable revenue - 59 -
Total deferred inflows of resources0 59 0
Fund balance (deficit):
Restricted - 237,61996,061
Unassigned(629,738) - -
Total fund balance (deficit)(629,738)237,619 96,061
Total liabilities, deferred inflows
of resources, and fund balance$11,915$237,678$96,061
Exhibit F-3
Satellite Lane 57th Avenue
Total Nonmajor Capital Project
Apts.RedevelopmentTIF #19#22 Northstar
Funds
20142013
$101,021$10,999$39,918$881$498,381$400,247
1,29244215 - 1,6432,324
$102,313$11,043$40,133$881$500,024$402,571
$ - $ - $43,740$ - $43,740$45,446
- 20,760 - 12,000674,413704,413
0 20,760 43,740 12,000 718,153 749,859
1129142 - 2412,324
11 29 142 0 241 2,324
102,302 - - - 435,982335,801
- (9,746)(3,749)(11,119)(654,352)(685,413)
102,302 (9,746)(3,749)(11,119)(218,370)(349,612)
$102,313$11,043$40,133$881$500,024$402,571
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
For The Year Ended December 31, 2014
With comparative totals for the year ended December 31, 2013
University / McGlynn
Gateway EastOsborneBakeries
Revenues:
Tax increment$23,106$49,869$26,236
Investment income:
Interest and dividends - 1,208604
Net change in the fair value of investments - 825413
Total revenues23,10651,90227,253
Expenditures:
Personal services - - -
Supplies and other charges3,2976,1133,642
Developer assistance - - -
Capital outlay - - -
Total expenditures3,2976,1133,642
Excess (deficiency) of
revenues over (under) expenditures19,80945,78923,611
Fund balance (deficit) - January 1(649,547)191,83072,450
Fund balance (deficit) - December 31($629,738)$237,619$96,061
Exhibit F-4
Satellite Lane 57th Avenue
Totals Nonmajor Capital Project
Apts.Redevelopment#22 Northstar
TIF #19Funds
20142013
$34,148$21,656$98,124$ - $253,139$271,448
604 - - - 2,4161,339
413 - - - 1,651(2,075)
35,16521,65698,1240257,206270,712
- - - - - -
4,3842,72310,6357,27838,07279,086
- - 87,892 - 87,89291,651
- - - - - -
4,3842,72398,5277,278125,964170,737
30,78118,933(403)(7,278)131,24299,975
71,521(28,679)(3,346)(3,841)(349,612)(449,587)
$102,302($9,746)($3,749)($11,119)($218,370)($349,612)
This page intentionally left blank
AGENCY FUNDS
Agency Funds account for assets held by a governmental unit in a trustee
capacity or as an agent for individuals, private organizations, other governmental
units, and/or other funds.
Exhibit G-1
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
For The Year Ended December 31, 2014
BalanceBalance
January 1,December 31,
2014AdditionsDeletions2014
Hotel/Motel Tax
Assets:
Cash and investments$ - $53,230$49,694$3,536
Receivables:
Accounts3,0991641393,124
Total assets$3,099$53,394$49,833$6,660
Liabilities:
Due to other governments$3,099$56,167$52,606$6,660
Statistical Section (Unaudited)
This part of the City of Fridley's statistical's comprehensive annual financial report
presents detailed information as a context for understanding what the information in the
financial statements, note disclosures, and required supplementary information says
about the City's overall financial health.
ContentsPage
Financial Trends138
These schedules contain trend information to help the reader understand how the
City's financial performance and well-being have changed over time.
Revenue Capacity148
These schedules contain information to help the reader assess the factors
affecting the City's ability to generate its property tax.
Debt Capacity153
These schedules present information to help the reader assess the affordability
of the City's current levels of outstanding debt and the City's ability to issue
additional debt in the future.
Demographic and Economic Information160
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take
place and to help make comparisons over time and with other governments.
Operating Information164
These schedules contain information about the City's operations and resources
to help the reader understand how the City's financial information relates to the
services the City provides and the activities it performs.
Sources:
Unless otherwise noted, the information in these schedules is derived
from the comprehensive annual financial reports for the relevant year. The City
implemented Statement 34 in 2003; the City has chosen to provide information for that
year forward. Ultimately, these schedules will contain information for the last ten years.
CITY OF FRIDLEY, MINNESOTA
NET POSITION BY COMPONENT
Last ten fiscal years
(Accrual Basis of Accounting)
200520062007
Governmental activities:
Net investment in capital assets$18,458,113$18,635,605$18,245,265
Restricted 1,540,531 1,591,936 1,711,255
Unrestricted 13,331,115 15,140,831 17,244,490
Total governmental activities net position$33,329,759$35,368,372$37,201,010
Business-type activities:
Net investment in capital assets$16,454,772$17,354,621$16,951,085
Restricted - - -
Unrestricted9,258,9847,955,4267,722,458
Total business-type activities net position$25,713,756$25,310,047$24,673,543
Primary government:
Net investment in capital assets$34,912,885$35,990,226$35,196,350
Restricted 1,540,531 1,591,936 1,711,255
Unrestricted 22,590,099 23,096,257 24,966,948
Total primary government net position$59,043,515$60,678,419$61,874,553
Table 1
2008200920102011201220132014
$17,490,936$16,141,958$15,546,219$14,554,639$14,139,656$13,842,497$14,186,359
2,790,2202,193,410 3,401,776 3,392,382 3,294,952 3,050,204 2,673,982
20,276,25218,845,006 21,293,470 23,020,467 $24,238,798$24,551,730$25,321,659
$38,529,352$39,208,430$40,241,465$40,967,488$41,673,406$41,444,431$42,182,000
$16,381,443$15,036,932$15,105,503$14,342,934$13,560,980$12,910,117$13,053,816
- - - - - - -
7,869,1858,308,0787,647,8487,387,6348,235,9488,417,0858,727,382
$24,250,628$23,345,010$22,753,351$21,730,568$21,796,928$21,327,202$21,781,198
$33,872,379$31,178,890$30,651,722$28,897,573$27,700,636$26,752,614$27,240,175
2,790,2202,193,410 3,401,776 3,392,382 3,294,952 3,050,2042,673,982
28,584,33026,714,191 28,941,318 30,408,101 32,474,746 32,968,81534,049,041
$62,779,980$62,553,440$62,994,816$62,698,056$63,470,334$62,771,633$63,963,198
CITY OF FRIDLEY, MINNESOTA
CHANGES IN NET POSITION
Last ten fiscal years
(Accrual basis of accounting)
200520062007
Expenses
Governmental activities:
General government$4,448,175$4,177,829$4,074,480
Public safety5,514,3306,023,3356,260,806
Public works4,105,8603,868,5174,208,765
Community development793,8361,118,661863,850
Parks and recreation 767,5991,147,9661,312,502
Interest on long-term debt443,533397,036416,850
Total governmental activities expenses16,073,33316,733,34417,137,253
Business-type activities:
Liquor4,919,4584,793,4194,920,511
Water2,070,0322,138,3712,279,034
Sanitary sewer3,570,1133,629,3613,798,053
Storm water320,596331,039381,944
Total business-type activities expenses10,880,19910,892,19011,379,542
Total primary government expenses$26,953,532$27,625,534$28,516,795
Program revenues
Governmental activities:
Charges for services:
General government$1,263,265 1,443,361$1,468,699
Public safety$569,993 609,721709,209
Public works$189,766 197,96849,399
Community Development$599,870 470,733656,674
Parks and recreation $331,298 346,382381,432
Operating grants and contributions1,121,7261,304,510930,593
Capital grants and contributions1,657,1061,919,108834,748
Total governmental activities program revenues5,733,0246,291,7835,030,754
Business-type activities:
Charges for services:
Liquor5,283,2295,136,0295,252,910
Water1,771,8461,929,5731,990,047
Sanitary sewer3,299,9573,345,0173,461,615
Storm water384,860391,032392,016
Operating grants and contributions600514 -
Capital grants and contributions - - -
Total business-type activities program revenues10,740,49210,802,16511,096,588
Total primary government program revenues$16,473,516$17,093,948$16,127,342
Table 2
Page 1 of 2
2008200920102011201220132014
$3,646,436$3,324,698$3,272,470$3,321,402$3,155,983$3,434,479$4,092,123
6,774,6106,847,5716,756,6986,720,6416,999,5547,101,3317,570,322
4,771,7485,065,1785,916,7765,023,0805,420,2715,928,3315,959,595
1,479,4551,036,549966,909973,198880,414935,716898,455
1,303,0631,605,3061,521,1061,387,1331,355,5711,456,8411,513,135
377,884342,555268,892263,075232,318218,610179,420
18,353,19618,221,85718,702,85117,688,52918,044,11119,075,30820,213,050
4,937,7764,654,8114,542,1804,568,2824,354,9094,148,4474,596,316
2,378,1012,423,1292,438,3992,688,8462,647,1762,815,5882,902,419
4,065,8994,350,5764,617,9914,750,4674,653,4344,974,5254,988,587
373,989399,349421,630785,861602,923587,036597,915
11,755,76511,827,86512,020,20012,793,45612,258,44212,525,59613,085,237
$30,108,961$30,049,722$30,723,051$30,481,985$30,302,553$31,600,904$33,298,287
$1,600,769$1,733,160$1,755,123$1,886,783$1,979,737$2,025,108$2,079,719
759,892690,115717,003796,308862,584864,435683,418
64,04223,03466,938378,14228,14499,28927,312
510,908523,508501,897570,685554,129582,280798,392
376,621347,044364,093325,682369,899326,067327,508
818,805930,765939,1231,148,3151,030,8871,095,7241,837,860
2,078,5721,476,9891,952,9341,374,6511,564,1461,747,3031,220,903
6,209,6095,724,6156,297,1116,480,5666,389,5266,740,2066,975,112
5,275,4674,973,0004,855,8804,893,4364,705,5234,308,7914,786,987
2,110,6212,419,4002,390,8362,418,2262,773,1012,788,1462,913,717
3,873,8063,784,0004,052,8004,245,6544,549,2544,572,7984,754,492
404,562457,862421,815457,083571,707613,818732,961
- - - - - 50,000 -
- - - - - - 440,627
11,664,45611,634,26211,721,33112,014,39912,599,58512,333,55313,628,784
$17,874,065$17,358,877$18,018,442$18,494,965$18,989,111$19,073,759$20,603,896
CITY OF FRIDLEY, MINNESOTA
CHANGES IN NET POSITION
Last ten fiscal years
(Accrual basis of accounting)
200520062007
Net (expense) revenue:
Governmental activities($10,340,309)($10,441,561)($12,106,499)
Business-type activities(139,707)(90,025)(282,954)
Total primary government net (expense) revenue($10,480,016)($10,531,586)($12,389,453)
General revenues and other changes in net position
Governmental activities:
General property taxes$7,428,226$8,253,653$8,986,924
Grants not restricted to programs3,365,7392,623,4073,152,421
Investment earnings511,464998,1541,111,116
Gain on sale of property4343,35759,438
Other -1,60329,238
Transfers -600,000600,000
Total governmental activities11,305,86312,480,17413,939,137
Business-type activities:
Investment earnings168,445281,316245,172
Gain on Sale of Property -5,0001,278
Other - - -
Transfers -(600,000)(600,000)
Total business-type activities168,445(313,684)(353,550)
$11,474,308$12,166,490$13,585,587
Total primary government
Change in net position:
Governmental activities$965,554$2,038,613$1,832,638
Business-type activities28,738(403,709)(636,504)
Total primary governmen$994,292$1,634,904$1,196,134
t
Table 2
Page 2 of 2
2008200920102011201220132014
($12,143,587)($12,497,242)($12,405,740)($11,207,963)($11,654,585)($12,335,102)($13,237,938)
(91,309)(193,603)(298,869)(779,057)341,143(192,043)543,547
($12,234,896)($12,690,845)($12,704,609)($11,987,020)($11,313,442)($12,527,145)($12,694,391)
$9,068,718$9,175,888$10,141,119$10,126,395$10,654,542$11,003,455$11,521,196
3,240,0813,390,6332,718,9791,095,4701,030,1231,033,8141,476,664
687,66596,817208,565347,184269,240(216,821)634,411
(24,802)12,98220,11214,93756,59835,680 -
267 - - - - - 93,236
500,000500,000350,000350,000350,000250,000250,000
13,471,92913,176,32013,438,77511,933,98612,360,50312,106,12813,975,507
168,39425,90857,098106,27465,537(52,346)148,248
- (237,923)112 - 9,680 - -
- - - - - 24,66312,201
(500,000)(500,000)(350,000)(350,000)(350,000)(250,000)(250,000)
(331,606)(712,015)(292,790)(243,726)(274,783)(277,683)(89,551)
$13,140,323$12,464,305$13,145,985$11,690,260$12,085,720$11,828,445$13,885,956
$1,328,342$679,078$1,033,035$726,023$705,918($228,974)$737,569
(422,915)(905,618)(591,659)(1,022,783)66,360(469,726)453,996
$905,427($226,540)$441,376($296,760)$772,278($698,700)$1,191,565
Table 3
Page 1 of 2
CITY OF FRIDLEY, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
(1)
Last ten fiscal years
(Modified accrual basis of accounting)
2005200620072008
General Fund:
Reserved$81,662$77,476$65,528$48,561
Unreserved:
General fund4,020,2853,863,0235,206,7784,538,224
Designated for employee benefits - - - -
Designated for contingencies - - - -
Undesignated - - - -
Nonspendable - - - -
Restricted - - - -
Unassigned - - - -
Total general fund$4,101,947$3,940,499$5,272,306$4,586,785
All other governmental funds:
Reserved for:
Long-term receivables$480,123$415,908$348,441$277,560
Public safety688,214203,13120,72625,590
Debt service389,197721,8661,214,5191,564,217
Unreserved, reported in:
Special revenue funds1,098,9951,106,6231,189,1401,258,926
Capital projects funds6,881,5236,963,5245,223,5635,944,556
Debt service5,976,8885,991,1026,201,3505,976,511
Restricted - - - -
Committed - - - -
Assigned - - - -
Unassigned - - - -
Total all other governmental funds$15,514,940$15,402,154$14,197,739$15,047,360
(1)
The City implemented GASB Statement No. 31 for the fiscal year ended December 31, 2003.
Therefore, information for years prior to 2003 is not available.
In 2011, the City adopted the provisions of Gorenmental Accounting Standards Board Statement
No. 54, Fund Balance Reporting and Governmental Fund Type Definitions.
Table 3
Page 2 of 2
200920102011201220132014
$58,928$59,755$ - $ - $ - $ -
4,600,9885,725,464 - - - -
- - - - - -
- - - - - -
- - - - - -
- - 65,27166,15250,36660,123
- - - 20,81040,01215,176
- - 6,708,2847,582,3607,997,0368,242,331
$4,659,916$5,785,219$6,773,555$7,669,322$8,087,414$8,317,630
$ - $ - $ - $ - $ - $ -
- - - - - -
1,734,6242,066,732 - - - -
1,329,6471,407,400 - - - -
5,056,1485,796,931 - - - -
5,801,6865,983,425 - - - -
- - 2,529,8733,093,3022,233,6642,071,259
- - 2,209,0672,328,5832,124,9442,566,101
- - 11,108,00311,783,59611,618,83511,949,555
- - (98,164)(97,712)(98,566)(97,712)
$13,922,105$15,254,488$15,748,779$17,107,769$15,878,877$16,489,203
CITY OF FRIDLEY, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
200520062007
Revenues:
General property taxes$7,397,381$8,220,943$8,927,963
Special assessments550,909691,764635,817
Licenses and permits865,848876,9031,080,787
Intergovernmental2,767,7242,663,9091,872,643
Charges for services1,736,1811,855,1771,830,416
Fines and forfeits164,104261,535298,359
Earnings on investments411,333828,877920,850
Interest on loan26,30823,21319,962
Other2,625,8992,154,6562,288,309
Total revenues 16,545,687 17,576,977 17,875,106
Expenditures:
Current:
General government4,244,4963,567,5033,893,952
Public safety5,204,5515,821,5235,999,557
Public works2,940,8692,944,9113,025,157
Community development671,1731,113,543861,872
Parks and recreation737,0941,118,3921,194,290
Debt service:
Principal6,095,0001,555,0001,825,000
Interest 422,366330,431359,010
Bond issuance costs35,99731,74242,986
Capital outlay3,112,7004,452,5003,114,203
Contingency907 - -
Total expenditures 23,465,153 20,935,545 20,316,027
Revenues over (under) expenditures (6,919,466) (3,358,568) (2,440,921)
Other financing sources (uses):
Refunding bond issues - - -
Bonds issued6,450,0002,505,0001,910,000
Premium/(discount) on bonds issue(7,160)(30,720) -
Proceeds from sale of capital assets -10,05458,313
Insurance and other reimbursements - - -
Transfers in657,8784,966,400600,000
Transfers out -(4,366,400) -
Total other financing sources (uses) 7,100,718 3,084,334 2,568,313
Net change in fund balance$181,252($274,234)$127,392
Debt service as a percentage of
noncapital expenditures32.2%11.6%12.9%
Debt service as percentage of total expenditures 27.9%9.2%11.0%
Table 4
2008200920102011201220132014
$9,052,719$9,072,267$10,178,369$10,113,120$10,732,129$11,024,785$11,554,557
589,790665,038622,100672,929763,920834,120938,290
946,285965,363973,9851,085,1001,104,5041,123,6351,171,365
2,742,9813,140,5533,310,6312,853,1712,649,2072,643,7283,208,442
2,015,7962,021,7082,080,3492,206,7642,353,8882,545,9082,518,062
316,646255,014240,880258,372255,622218,194226,922
560,62974,840176,257297,290236,226(185,473)565,245
16,5476,939 - - - - -
2,220,2762,043,2521,992,971325,284322,354295,409314,416
18,244,97418,461,669 19,575,542 17,812,030 18,417,850 18,500,306 20,497,299
3,338,2283,086,4413,010,8353,165,1113,503,3263,279,6573,732,056
6,323,9106,446,7146,329,3546,284,6586,422,6466,794,5247,165,678
3,406,4683,376,6413,111,9183,061,1003,047,3003,530,9394,635,752
1,189,033895,057967,487979,042772,070817,895894,785
1,366,1541,301,1401,292,7831,195,4101,252,0891,305,1581,422,405
2,075,0002,215,0002,445,000800,000940,000980,0001,150,000
379,340366,500287,961271,969232,318227,326190,890
9,1391,80145,0942,79947,016 - 3,150
2,684,9382,144,6491,812,087964,4101,639,7732,536,2861,290,008
- - - - - - -
19,833,94320,772,210 19,302,519 16,724,499 17,856,538 19,471,785 20,484,724
(1,588,969)(2,310,541) 273,023 1,087,531 561,312 (971,479) 12,575
- - - - - - -
1,915,000 - 1,765,000 - 1,280,000 - -
- - 53,163 - - - -
13,10136,84516,50015,09663,44535,67936,836
- - - - - - -
3,926,5632,500,4211,235,467380,000350,000250,0008,253,616
(3,380,023)(2,000,421)(885,467) - - (125,000)(7,462,485)
536,8452,474,641 2,184,663 395,096 1,693,445 160,679 827,967
$164,100($1,052,124)$2,457,686$1,482,627$2,254,757($810,800)$840,542
13.6%14.6%15.9%6.8%7.2%6.8%7.0%
11.9%13.0%14.4%6.4%6.8%6.2%6.6%
CITY OF FRIDLEY, MINNESOTA
TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY
Last ten fiscal years
Commercial/
FiscalResidentialIndustrialPublicAll
YearPropertyPropertyUtilityOther
2005$12,619,948$12,517,532$46,563$3,762,125
200614,320,78613,166,65746,8613,833,436
200715,074,00814,500,00846,9534,236,896
200815,334,12615,809,59442,7384,370,011
200914,716,96716,788,86038,6804,455,969
201013,494,27916,457,27537,3084,523,767
201112,175,45215,182,22741,2364,396,579
1
2012
10,246,61414,710,92640,3304,271,859
1
2013
8,713,05313,207,35145,3064,286,829
1
2014
7,885,29812,520,98144,6484,362,496
Source: Continuing Disclosure Document
1
After 2011 the State implemented the Homestead Market Value Exclusion program for residential properties. Beginning in 2012
the HMVE program excludes a portion of the market value prior to the tax calculation.
2
Property values are determined on January 2 of the preceeding year.
Table 5
Add:Less:
Totalfor Area-wideFiscalAdjustedTotalEstimatedTax Capacity
TaxValues andDisparityTax CapacityDirect TaxMarketas a Percent
2
Value
of EMV
CapacityIncrementContributionValueRate
$28,946,168$ - $4,624,091$24,322,07733.565%$2,278,619,300119.01%
31,367,740 - 4,115,59527,252,14531.941%2,469,670,100115.10%
33,857,865 - 5,516,35128,341,51431.349%2,616,727,300119.46%
35,556,469 - 5,252,63730,303,83230.324%2,701,388,800117.33%
36,000,4761,514,7305,757,07331,758,13328.640%2,698,943,700113.36%
34,512,6292,478,3716,128,31830,862,68232.258%2,561,173,300111.83%
31,795,4942,505,5176,212,40628,088,60536.986%2,352,567,900113.20%
29,269,7292,851,4595,629,37426,491,81439.615%2,278,659,000110.49%
26,252,5392,844,6895,373,20223,724,02647.362%2,057,500,500110.66%
24,813,4232,799,1714,509,58723,103,00748.577%1,948,580,100107.40%
CITY OF FRIDLEY, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES
Last ten fiscal years
SchoolSchoolSchool
FiscalDistrictDistrictDistrict
YearCityNo. 11No. 13No. 14
200533.565%21.492%19.993%21.606%
200631.941%20.046%19.571%20.830%
200731.349%19.353%17.183%24.175%
200830.324%16.983%15.942%26.033%
200928.640%18.263%23.411%31.172%
201032.258%19.939%24.398%38.795%
201136.486%24.023%18.596%40.631%
201239.615%23.325%24.024%43.862%
201347.362%26.801%27.449%50.112%
201448.577%28.265%24.824%49.552%
Source: Anoka County Property Records and Taxation Department
Notes:
(1)
Coon Creek Watershed District is included with School District No. 11.
(2)
Rice Creek Watershed District is included with School District No. 13, 14 and 16.
Table 6
SchoolTotalSchoolSchoolSchoolSchool
DistrictSpecialDistrictDistrictDistrictDistrict
(1)(1)(2)(2)(2)
No. 16No. 11No. 13No. 14No. 16
CountyDistricts
16.118%33.080%8.085%96.945%96.329%97.942%92.454%
17.437%32.096%7.411%92.136%92.813%94.072%90.679%
25.779%30.696%6.829%88.666%87.770%94.762%96.366%
26.213%31.078%7.803%86.608%87.135%97.226%97.406%
27.155%32.078%8.783%86.183%92.840%100.601%96.584%
31.654%35.189%9.089%94.964%100.897%115.294%108.153%
33.959%39.884%10.533%113.226%109.392%131.427%124.755%
39.443%41.146%10.176%111.953%114.961%134.799%130.380%
44.440%44.411%14.189%128.022%129.850%152.513%146.841%
44.562%43.239%9.559%129.640%126.936%151.664%146.674%
Table 7
CITY OF FRIDLEY, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS
Current year and nine years ago
20142005
Percentage Percentage
Taxableof Total CityTaxableof Total City
CapacityCapacityCapacityCapacity
TaxpayerValueRankValueValueRankValue
Medtronic, Inc.$1,663,36016.70%$1,484,58815.13%
Target Corporation549,794 2 2.22%685,542 2 2.37%
Cummins Power (Onan)513,046 32.07%334,638 4 1.16%
Retail Trust IV (Wal-Mart/Sam's)329,397 4 1.33%317,770 5 1.10%
Industrial Equities281,190 51.13%N/A0.00%
Shamrock Investments276,456 6 1.11%510,152 3 1.76%
University Avenue Associates234,936 70.95%258,833 6 0.89%
BAE210,344 8 0.85%N/A10 0.00%
River Pointe Apartments185,007 90.75%192,356 9 0.66%
Lifetime Fitness181,092 10 0.73%234,576 8 0.81%
Maurice Fillister (Georgetown)N/A0.00%242,269 7 0.84%
Total$4,424,62217.84%$4,260,72414.72%
Total All Property$24,813,423$28,946,168
Source: City Assessor
Table 8
CITY OF FRIDLEY, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last ten fiscal years
FiscalTaxesCollectionsCollected Within The
YearLeviedinFiscal Year of the LevyTotal Collections to Date
EndedFor ThePercentageSubsequentPercentage
1
YearsAmountof Levy
Dec. 31Fiscal YearAmountof Levy
2005$7,543,382$7,394,30498.02%$149,078$7,543,382100.00%
20068,278,2558,130,76798.22%147,4888,278,255100.00%
20078,772,1498,614,53798.20%154,7888,769,32599.97%
20089,188,5928,958,98697.50%225,7719,184,75799.96%
20099,110,8478,856,38497.21%249,6899,106,07399.95%
20109,707,0759,503,50997.90%194,7969,698,30599.91%
201110,014,0719,897,61098.84%103,07310,000,68399.87%
201210,703,73910,699,02599.96%(18,868)10,680,15799.78%
201311,252,48111,247,94399.96%(33,746)11,214,19799.66%
201411,511,28811,531,244100.17%N/A11,531,244100.17%
1
Includes repayment of property taxes abatements
Source: City Finance Department
Table 9
CITY OF FRIDLEY, MINNESOT
A
RATIOS OF OUTSTANDING DEBT BY TYP
E
Last Ten fiscal years
Business
Type
Governmental ActivitiesActivities
Total Percentage
FiscalImprovementTax IncrementEquipmentRevenuePrimaryof PersonalPer
11
IncomeCapita
YearBondsBondsCertificatesTotalBondsGovernment
2005$1,805,000$8,335,000$ - $10,140,000$3,815,000$13,955,0002.01%374
20064,310,0006,780,000 - 11,090,0003,420,00014,510,0002.06%416
20076,065,0005,110,000 - 11,175,0003,015,00014,190,0001.99%420
20087,615,0003,400,000 - 11,015,0006,440,00017,455,0002.46%416
20097,080,0001,720,000 - 8,800,0005,865,00014,665,0002.13%333
20107,570,000 - 550,0008,120,0008,160,00016,280,0002.19%298
20116,770,000 - 550,0007,320,0007,625,00014,945,0002.00%266
20125,880,000 - 1,780,0007,660,0007,070,00014,730,0001.96%278
20134,955,000 - 1,725,0006,680,0006,413,15413,093,1541.69%240
20144,000,0001,530,0005,530,0005,845,00011,375,0001.58%198
1
Demographic information can be found on Table 13
Table 10
CITY OF FRIDLEY, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2014
Estimated
EstimatedShare of
DebtPercentageOverlapping
1
Applicable
Governmental UnitOutstanding
Debt
Debt repaid with property taxes:
Independent School District No. 11$72,239,0611.60%$1,155,825
Independent School District No. 1317,255,000 31.46%5,428,423
Independent School District No. 1436,940,000 100.00%36,940,000
Independent School District No. 16143,900,000 36.80%52,955,200
Metro Council1,507,019,856 1.19%17,933,536
Anoka County143,506,281 18.04%25,888,533
Vocational/Technical District No. 9162,695,000 2.21%59,560
Subtotal - overlapping debt140,361,077
City of Fridley - Direct debt$5,530,000100.00%5,530,000
Total direct and overlapping debt$145,891,077
Sources: Continuing Disclosure Document
1
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents
and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term
debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not
imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
This page intentionally left blank
Table 11
CITY OF FRIDLEY, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
Last ten fiscal years
Market Value$1,948,580,100
Debt Limit 3% of Market Value$58,457,403
Amount of Debt Applicable to Debt Limit:
Total Debt$11,375,000
Deductions:
Improvement Bonds4,000,000
Revenue Bonds5,845,0009,845,000
Total Amount of Debt Applicable to Debt Limit1,530,000
Legal Debt Margin$56,927,403
Legal Debt Margin Calculation for the last 10 Fiscal Years
Net DebtLegalAmount of Debt
FiscalDebtApplicable toDebtApplicable to
YearLimitLimitMarginDebt Limit
2005$45,168,942$ - $42,589,0160.00%
200649,393,402 - 45,168,9420.00%
200752,334,546 - 49,393,4020.00%
200854,027,776 - 52,334,5460.00%
200980,968,311 - 54,027,7760.00%
201076,835,199550,00076,285,1990.72%
201170,577,037550,00070,027,0370.78%
201268,359,7701,780,00066,579,7702.60%
201361,725,0151,725,00060,000,0152.79%
201458,457,4031,530,00056,927,4032.62%
Note: State statutes limit the amount of general obligation debt a Minnesota City may issue to 3% of total
estimated market value; prior to 2008, the State Statute debt limit was 2%.
CITY OF FRIDLEY, MINNESOTA
PLEDGED-REVENUE COVERAGE
Last ten fiscal years
Improvement BondsEquipment Certificates
SpecialProperty
Debt ServiceDebt Service
FiscalAssessmentTax
YearCollectionsPrincipalInterestCoverageCollectionsPrincipalInterestCoverage
2005$542,548$190,000$5,3402.78$ - $ - $ - -
2006671,204 - 67,4669.95 - - - -
2007602,988155,000160,4231.91 - - - -
2008561,221365,000230,3250.94 - - - -
2009658,406535,000270,0050.82 - - - -
2010555,997725,000252,8990.57 - - - -
2011504,053800,000258,1350.4869,881 - 13,8345.05
2012659,666890,000229,5030.59 70,66850,00013,4501.11
2013376,026925,000198,4130.33 233,74955,00025,7632.89
2014932,078955,000166,2350.83 234,357195,00025,6531.06
Table 12
Utility Revenue BondsTax Increment Bonds
Utility Less Net Tax
Debt ServiceDebt Service
ServiceOperatingAvailableIncrement
RevenuesExpensesRevenuePrincipalInterestCoverageCollectionsPrincipalInterestCoverage
$5,435,361$5,821,541($386,180)$1,590,000$139,200-0.22$3,224,204$5,905,000$417,0260.51
5,648,7205,977,607(328,887)395,000121,164-0.642,649,0201,555,000262,9651.46
5,832,9046,350,572(517,668)305,000108,351-1.253,586,0971,670,000199,4881.92
6,379,9846,631,304(251,320)300,000149,481-0.563,329,2891,710,000149,0151.79
6,611,6116,951,906(340,295)575,000221,449-0.432,016,5801,680,00096,4951.14
6,855,4417,236,513(381,072)515,000241,508-0.501,742,8161,720,00035,0630.99
7,118,1547,952,911(834,757)535,000272,264-1.0369,881 - 13,8345.05
7,864,4066,341,5441,522,862555,000255,0541.88 - - - -
7,961,7386,839,8521,121,886655,000235,4741.26 - - - -
8,363,4156,987,0951,376,320570,000223,4591.73
Table 13
CITY OF FRIDLEY, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last ten fiscal years
Total Per Capita
FiscalUnemploymentPersonalPersonal
Year
PopulationRateIncomeIncome
200527,0884.2%$695,674,016$25,682
200626,6794.2%703,978,77326,387
200726,6034.8%712,747,57626,792
200826,4595.7%708,889,52826,792
200926,4227.9%688,160,99026,045
201027,2087.3%744,138,80027,350
201127,3885.5%742,077,86027,095
201227,7905.6%755,109,88027,172
201327,7854.4%774,145,67027,862
201427,8654.2%718,164,64525,773
Sources: Metropolitan Council (population), Continuing Disclosure Document (unemployment rate)
Table 14
CITY OF FRIDLEY, MINNESOTA
PRINCIPAL EMPLOYERS
Current year and nine years ago
20142005
Percentage Percentage
of Total Cityof Total City
EmployerEmployeesRankEmploymentEmployeesRankEmployment
3,800116.91%110.60%
Medtronic, Inc.2,500
1,50026.68%37.32%
Cummins Power (Onan)1,727
1,24535.54%45.93%
Unity Medical Center1,400
69643.10%52.54%
Target600
60052.67%27.63%
BAE Systems1,800
57862.57%N/A
ISD #14 (Fridley Schools)
50072.23%62.12%
Minco Products500
30081.34%91.27%
Park Construction300
28091.25%101.11%
Wal-Mart262
263101.17%71.48%
Kurt Manufacturing350
N/AN/A
Lofthouse Bakery
N/A81.27%
Parsons Electric300
Total9,76243.45%9,73941.28%
Total City Employment22,46923,593
Source: Fridley Community Development Dept, MN Department of Employment and Economic Development
CITY OF FRIDLEY, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last ten fiscal years
Full-Time Equivalent Employees as of December 31,
Function/Program2005200620072008
General government:
City administration3333
Finance23232222
Human resource2222
Community development81079
Public safety:
Police department46474444
Fire department8998
Public works:
Administration4422
Engineering2244
Mechanic3333
Streets9999
Water5555
Sewer5555
Parks7777
Parks and recreation:
Parks and recreation81188
Total133140130131
Source: City Finance Department
1
Prior to 2013 positions at 32 hours or more per week were counted as 1 full-time equivalent. As of 2013 these figures
represent all permanent staff.
Table 15
Full-Time Equivalent Employees as of December 31,
1
2013
2009201020112012
2014
33334.04.7
1919192018.016.0
22222.02.0
77778.29.8
4542434450.651.6
88887.87.6
22221.20.6
44335.05.0
33334.54.0
99999.08.5
55777.06.5
55557.07.0
77555.05.0
88888.09.6
127124124126137.3137.9
CITY OF FRIDLEY, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last ten fiscal years
Fiscal Year
Function/Program2005200620072008
Police:
Physical arrests1,2051,2921,2901,357
Parking violations884572792419
Traffic violations1,7895,1524,0354,994
Fire:
Emergency responses2,7192,5682,8042,827
Fires occurred107127109116
Commercial inspections1,1717844,5171,239
Rental inspections2962311,176755
Refuse collection:
Recyclables collected (tons per day)6.696.956.966.12
Recyclables collected (pounds per person)N/AN/AN/AN/A
Building inspection:
Permits issued:
Residential7507681,2061,444
Commercial86115366418
Total permit valuation$25,057,537$21,750,596$47,871,624$39,105,158
Other public works:
Street resurfacing (miles)4.14.83.74.1
Recreation
Total participation hoursN/AN/AN/AN/A
Total senior program participation hoursN/AN/AN/AN/A
Springbrook Nature Ctr program participants19,85219,59620,24520,894
Water:
Connections8,2328,2358,2308,233
Storage capacity (gallons)6,500,0006,500,0006,500,0006,500,000
Average daily demand (gallons)550,000550,0004,270,0004,270,000
Peak daily demand (gallons)10,000,00010,990,00010,990,00010,800,000
Sewer:
Connections8,2508,2448,2388,242
Sources: Various City departments.
Table 16
Fiscal Year
200920102011201220132014
1,3051,3181,1451,1331,3441,256
382778665283562373
2,9342,9292,8602,5902,8263,245
2,8642,7722,9232,9063,0033,089
141116114121119110
1,0218688901,0161,1101,505
8885977831,1171,1451,428
6.475.895.705.815.80N/A
N/AN/AN/AN/A164.67164.59
1,5991,9052,2321,6062,1911,974
386434446386440492
$45,564,657$30,441,199$39,902,641$35,763,059$40,697,477$47,109,811
4.94.92.23.13.83.3
N/AN/AN/A302,500305,975315,160
N/AN/AN/A68,70069,81871,920
20,93723,98724,23124,26623,41923,860
8,2318,2268,2228,2278,2308,243
6,500,0006,500,0006,500,0006,500,0006,500,0006,500,000
3,458,4823,014,4253,730,0003,993,2854,227,9752,517,808
19,350,8928,119,2076,622,0008,661,0009,009,0007,439,000
8,2388,2378,2328,2368,2398,252
Table 17
CITY OF FRIDLEY, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last ten fiscal years
Fiscal Year
Function/Program2005200620072008200920102011201220132014
Police:
Stations1111111111
Squad cars12121212121212121215
Fire stations3333333333
Other public works:
Streets (miles)125.3125.3125.3125.3125.3125.3125.3125.3125.3125.3
Highways (miles)10.310.310.310.310.310.310.310.310.310.3
Streetlights1,0551,0551,0591,0591,0591,0591,0591,0591,0591,059
Traffic signals35363636363636363636
Parks and recreation:
Acreage682682682682682682682682682682
Playgrounds29292929292929292929
Baseball/softball diamonds22222222222222222222
Soccer/football fields2222222222
Community centers1111111111
Water:
Water mains (miles)112.9113.0113.0113.0113.0113.0113.0113.0113.0113.0
Fire hydrants1,0121,0131,0131,0131,0131,0131,0131,0131,0131,013
Storage capacity (million gallons)6.56.56.56.56.56.56.56.56.56.5
Wastewater:
Sanitary sewers (miles)103.0103.0103.0103.0103.0103.0103.0103.0103.0103.0
Storm sewers (miles)50.052.052.052.052.052.052.052.052.052.0
Sources: Various City departments.