2021 ACFR City of Fridley, Minnesota City of Fridley, Minnesota
Annual Comprehensive Financial ReportAnnual Comprehensive Financial ReportFor year end December 31, 2021For year end December 31, 2021
FridleyMN.gov/233/City-FinancialsFridleyMN.gov/233/City-Financials
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Prepared by:
Finance Department
Joseph Starks
Finance Director
CITY OF FRIDLEY, MINNESOTA
Annual Comprehensive Financial Report
For Year End December 31, 2021
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EXHIBIT PAGE
Letter of Transmittal 3
Certificate of Achievement 11
Elected and Appointed Officials 13
City Administrative Organizational Structure 15
Independent Auditor's Report 19
Management's Discussion and Analysis 25
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position A-1 39
Statement of Activities A-2 40
Fund Financial Statements:
Balance Sheet - Governmental Funds A-3 42
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds A-4 44
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities A-5 47
Statement of Net Position - Proprietary Funds A-6 48
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds A-7 50
Statement of Cash Flows - Proprietary Funds A-8 52
Statement of Fiduciary Net Position - Fiducary Funds A-9 54
Statement of Changes in Fiducary Net Position - Fiduciary Funds A-10 55
Notes to Financial Statements 57
Required Supplementary Information:
Budgetary Comparison Schedule - General Fund B-1 102
Schedule of Changes in the Total OPEB Liability and Related Ratios B-2 106
Schedule of Proportionate Share of Net Pension Liability - General Employees
Retirement Fund B-3 107
Schedule of Pension Contributions - General Employees Retirement Fund B-4 108
Schedule of Proportionate Share of Net Pension Liability - Public Employees Police
and Fire Fund B-5 109
Schedule of Pension Contributions - Public Employees Police and Fire Fund B-6 110
Notes to RSI 111
I. INTRODUCTORY SECTION
II. FINANCIAL SECTION
CITY OF FRIDLEY, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2021
TABLE OF CONTENTS
EXHIBIT PAGE
CITY OF FRIDLEY, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2021
TABLE OF CONTENTS
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds C-1 118
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds C-2 119
Subcombining Balance Sheet - Nonmajor Special Revenue Funds C-3 124
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue Funds C-4 126
Subcombining Balance Sheet - Nonmajor Capital Project Funds C-5 130
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Capital Project Funds C-6 131
Special Revenue Funds:
Schedule of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual:
Cable TV Fund D-1 134
Solid Waste Abatement Fund D-2 135
Police Activity Fund D-3 136
Springbrook Nature Center Fund D-4 137
Internal Service Funds:
Combining Statement of Net Position E-1 140
Combining Statement of Revenues, Expenses and Changes in Net Position E-2 141
Combining Statement of Cash Flows E-3 142
Housing and Redevelopment Authority (Component Unit):
Balance Sheet - Governmental Funds F-1 144
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds F-2 146
Subcombining Balance Sheet - Nonmajor Capital Project Funds F-3 148
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Capital Project Funds F-4 150
Custodial Funds:
Combining Statement of Net Position - Fiduciary Funds G-1 154
Combining Statement of Changes in Fiduciary Net Position - Fiduciary Funds G-2 155
EXHIBIT PAGE
CITY OF FRIDLEY, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 2021
TABLE OF CONTENTS
Financial Trends:
Net Position by Component Table 1 160
Changes in Net Position Table 2 162
Fund Balances - Governmental Funds Table 3 166
Changes in Fund Balances - Governmental Funds Table 4 168
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 170
Direct and Overlapping Property Tax Capacity Rates Table 6 172
Principal Property Taxpayers Table 7 174
Property Tax Levies and Collections Table 8 175
Debt Capacity:
Ratios of Outstanding Debt by Type Table 9 176
Direct and Overlapping Govermental Activities Debt Table 10 177
Legal Debt Margin Information Table 11 179
Pledged Revenue Coverage Table 12 180
Demographic and Economic:
Demographic and Economic Statistics Table 13 182
Principal Employers Table 14 183
Full-Time Equivalent City Government Employees by Function/Program Table 15 184
Operating Information:
Operating Indicators by Function/Program Table 16 186
Capital Asset Statistics by Function/Program Table 17 188
III. STATISTICAL SECTION (Unaudited)
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I. INTRODUCTORY SECTION
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May 12, 2022
To the Citizens of the City of Fridley,
Mayor and Council Members
The Annual Comprehensive Financial Report (ACFR) of the City of Fridley,
Minnesota (City), for the fiscal year ended December 31, 2021, 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. The
City believes that the data, as presented, is accurate in all material aspects. The
data 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. 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 (GAAP) 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’s MD&A may be found immediately
following the report of the independent auditors.
All City funds, departments, commissions, and other organizations for which the
City is financially accountable are presented within the ACFR. The City provides a
full range of services to its citizens, including police and fire protection; water and
sanitary sewer utilities; the construction and maintenance of streets and sidewalks;
recreational facilities; commercial and residential real estate development
coordination; and general administrative services. The Housing and
Redevelopment Authority (HRA) is included in the reporting entity as a component
unit of the City as the governing board is appointed by the City Council and
because of the City’s financial relationship with the HRA.
Fridley Civic Campus
7071 University Ave N.E. Fridley, MN 55432
763-571-3450 | FAX: 763-571-1287 | FridleyMN.gov
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CITY OF FRIDLEY, MINNESOTA
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, the City Charter, the Fridley City Code and
other applicable actions of the City Council.
PROFILE OF THE CITY
The City is a first–ring suburban community with an estimated 2021 population of
29,590. The City is located 10 minutes north of downtown Minneapolis and 25
minutes northwest of downtown St. Paul. Incorporated in July of 1949, the City
covers about 11 square miles and is home to some of the most important industries
in the world. An “industrial spine” around the rail corridor has served the City well
and has provided the community with nearly as many jobs as the number of
residents. The City is home to the largest number of employees in Anoka County.
LOCAL ECONOMY
The local economy continues to grow through an increase in new construction,
redevelopment, and renovation. Unemployment in Minnesota continued to drop
throughout 2021. Current unemployment as of February 2022 is at a historic low
of 2.7% which is lower than the national average of 3.6%. Through the first ten
months of 2021, Minnesota employers added just over 190,000 jobs which brought
the total above 2.9 million jobs by year-end. The state is still below pre-pandemic
employment levels but continues to recover from the COVID-19 recession which
began in 2020. There are nearly twice as many open positions as available job
seekers in Minnesota. Over the past 12 months, the Consumer Price Index rose
8.2%. Inflation continues to be a worry for many as the cost of life’s necessities
continues to far exceed the increase in wages.
In July of 2021, the City received $1,472,232 from the American Rescue Plan Act
(ARPA). An additional $48,212 was received in November of 2021 from the
unclaimed reserves. The City anticipates receiving an equal amount in 2022. The
City has decided to use all of the ARPA funds for Utility Infrastructure projects
through 2024. By applying ARPA money to utility infrastructure projects, our
community benefits twofold; by stabilizing utility rates for our residential and
commercial customers and by reducing the need for external debt issuances in the
utility funds.
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CITY OF FRIDLEY, MINNESOTA
Fridley Liquor, the municipal liquor operation owned and operated by the City, had
another record-breaking year of sales. This could be attributed to the lower
unemployment rate and government stimulus checks. Gross sales totaled about
$7,300,000, an increase of about 7.3% compared to 2020.
Once again, the taxable market value of the City increased significantly in 2021,
growing by about $397,488,100, or 19.9%, compared to 2020. The number of
residential home sales also increased by about 22% over the same time period,
largely due to additional development adjacent to the Fridley Civic Campus.
Additionally, the City experienced another strong year of real estate development,
adding about $87,575,510 of new market value to the community.
The estimated market value for all properties in the City increased with apartments
up 18.0%, Commercial/Industrial up 8.0% and residential values up 19.7%
(unaudited), the average sale price of a residential homestead increased by more
than 13.6% compared to the previous year. These increases in valuation are
consistent with other cities located in the Minneapolis–St. Paul Metropolitan
Statistical Area.
LONG-TERM FINANCIAL PLANNING
As a fully-developed community, the City continues to experience certain financial
challenges. In order to maintain affordable housing and the corresponding tax
base, the City must help protect its aging housing stock. The City also works
diligently, through the budget process, to develop financial plans that emphasize
reasonable tax rates, consistent service delivery, infrastructure investments, and
good standing within the broader financial and local government community.
The City continues to focus on quality-of-life improvements throughout the
community. These initiatives include revitalizing parks and public areas,
maintaining and improving current City services, and increasing the
communication between City representatives and the public. The City is working
on a Park System Improvement Plan which has been approved by council for up to
$30 Million to be spent on parks over the next 8-10 years.
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CITY OF FRIDLEY, MINNESOTA
The City also continues to work closely with every level of government and other
interested parties to improve transportation throughout the community, including
major investment in area highways, roads and streets. Funding for these
improvements comes largely from the State and certain federal agencies with
additional monies levied through special assessment against benefiting properties
and other applicable funds controlled by the City.
Annually, the City develops a five-year financial plan for all budgeted funds. The
plans help the organization better understand the effects of certain public policy
decision and allow the City to make more proactive decisions regarding its financial
position.
MAJOR INITIATIVES
In 2021, the City continued a number of projects in partnership with various public
and private entities related to several infrastructure and redevelopment project.
The following non-exhaustive list outlines many of the more significant projects.
1. The City completed one major street rehabilitation project in the Rice Creek
Terrace area. This project was a result from a petition from individuals that
reside in that neighborhood.
2. Improvements were made to the Fridley Civic Campus Park, including trails
and other land improvements.
3. A new Sanitary Sewer lift station was built on 53rd Avenue.
4. The City completed the Park System Improvement Plan, which included a
series of community listening sessions and feedback to identify possible
capital improvements to the parks and trails located throughout the City.
The City plans to issue debt by 2023 to fund identified improvements.
5. The Northstar Transit Station completed the third and final building in 2021
which consisted of 71 affordable housing units. In total, this site added 250
residential units. The development began initially in 2019.
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CITY OF FRIDLEY, MINNESOTA
6. The Old City Hall was purchased by a private developer in 2019; this new
development will consist of 134 senior units with construction wrapping up
in the spring. The building will provide a mix of independent, assisted and
memory-care living situations.
7. A new TIF district began in 2020 with the purchase of the old Holly Center
shopping complex by a private developer. Construction was near
completion at the end of 2021. Leasing on the 262 residential dwelling units
began in early 2022. In addition, the building will eventually have 10,000
square feet of rentable commercial space.
Moving into 2022, the City continues its effort to enhance and expand various
programs and services while ensuring a fiscally responsible organization sensitive
to the needs of the community. The 2022 Budget reflects these goals while also
responding to various cost pressures and guidance from the City Council. While
the 2022 Budget does not include any new initiatives or services, it does provide
additional budget authority to support the outcome of an updated compensation
plan.
As noted above, the City plans on allocating ARPA funds to various utility
infrastructure projects in 2022, including Sanitary Sewer Lining for $530K, Storm
Sewer repair for $200K, Total Maximum Daily Load (TMDL) and water quality for
$180K and sediment removal for $100K.
In 2022, construction and development began quite strongly. As of April 15, 2022,
the value of new construction totaled about $6.4M. The City has several large
projects anticipated for 2022, including, but not limited to the following:
1. The following development projects are being planned for 2022.
a. A multi-tenant retail building (north of Dunkin Doughnuts)
b. A one Gig Solar canopy over the parking lot in the Medtronic Rice
Creek Campus
c. An industrial expansion to D & B Plating
d. A major remodel to the former Barry Blower industrial plant on 77th
Avenue NE.
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CITY OF FRIDLEY, MINNESOTA
2. A bridge over the BNSF Northern Switching Yard to extend 57th Avenue to
East River Road is on the drawing board. Funding sources to assure project
completion are now being sought out. Talks have been positive with the
Senate Tax Committee for additional design funds. This project is still likely
many years out.
3. Metropolitan Council Environmental Services (MCES) plans to build a new
lift station at 6900 East River Road to replace the existing lift station
currently located in the City of Brooklyn Park. The final planning and design
took place in 2021 with construction set to begin in 2023.
4. The City plans to complete two street projects in 2022. The first will provide
for the rehabilitation of streets and applicable utilities in the Lakeview
neighborhood. The second involves rehabilitation of various street
segments. In addition, a shared use trail on 7th Street and 57th Avenue is
being planned.
5. With the feedback portion of the Park System Improvement Plan being
complete. The City is now planning on issuing tax abatement bonds in the
amount of $20 Million by 2023. The plan calls for $30 Million in park
improvements over the next 8-10 years in which $10 Million will be funded
internally.
RELEVANT FINANCIAL POLICIES
In developing and improving the accounting system of the City, consideration is
given to the adequacy of internal accounting controls. Internal accounting controls
are designed to provide reasonable, but not absolute, assurance regarding the
safeguarding of assets against loss from unauthorized use or disposition, and the
reliability of financial records for preparing financial statements and maintaining
accountability for assets. The concept of reasonable assurance recognizes that the
cost of a control should not exceed the benefits likely to be derived from the same.
The evaluation of costs and benefits are based on the reasonable estimates and
judgments of City management.
All internal control evaluations occur within the above framework. The internal
accounting controls of the City adequately safeguard assets and provide
reasonable assurance of the proper recording of financial transactions.
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CITY OF FRIDLEY, MINNESOTA
Budgets for the General, Special Revenue and Capital Projects Funds are adopted
on an annual basis. Budgetary control is maintained in compliance with the City
Charter. The City 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 expended.
Budget adjustments between City departments 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 monthly process to review actual revenues and expenditures. The City
Council also adopts a revised budget annually to reflect any material changes,
consistent with the City Charter.
Expenditures are not approved until it has been determined that the expenditure
1) meets a public purpose, 2) is necessary, 3) adequate funds have been
appropriated; 4) funds are available; and 5) the authorization of the appropriation
expenditure by the appropriate parties. As required by the City Charter, budgetary
control is maintained within each department at the department level per the
annually adopted budget resolution. This is the level of control at which
expenditures may not legally exceed appropriations.
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, Cable Television Fund, and all Enterprise Funds. In 2021, all
the funds addressed by this policy, with the exception of the Springbrook Nature
Center, met their fund balance guidelines.
The purpose of the Investment Policy is to develop an overall program and
philosophy for cash investments, designed and managed with a high degree of
professionalism and worthy of the public trust. It establishes that elected and
appointed officials as well as certain employees are custodians of a portfolio. It
also establishes cash investment objectives, delegation of authority, standards of
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CITY OF FRIDLEY, MINNESOTA
prudence, internal controls, authorized investments, selection process for
investments and broker representations.
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 Office of the State Auditor. The
accounting firm of Redpath and Company was engaged by the City to render an
opinion on the financial statements of the City. 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 AND ACKNOWLEDGEMENTS
The GFOA awarded a Certificate of Achievement for Excellence in Financial
Reporting to the City for its ACFR for the fiscal year ended December 31, 2020. In
order to be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized Annual Comprehensive Financial Report.
This report must satisfy both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City
continues to strive to meet the requirements of the Certificate of Achievement
Program and will continue submitting it to the GFOA to determine the eligibility
for future certificates.
The preparation of this report could not have been accomplished without the
dedicated services of all members of the Finance Department, with special
recognition to Korrie Johnson, Assistant Finance Director, and the staff of the
Accounting Division. Staff are also grateful for the professional guidance from the
City auditors, Redpath and Company. Staff would also like to express appreciation
to the Mayor and City Council for their interest and support in planning and
conducting the financial operations of the City in a responsible and thoughtful
manner.
Respectfully submitted,
Walter T. Wysopal Joe Starks
City Manager Director of Finance/City Treasurer
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CITY OF FRIDLEY, MINNESOTA
ELECTED AND APPOINTED OFFICIALS
ELECTED OFFICIALS
Term of Office
Expires December
Mayor Scott J.Lund 2024
Councilmember At Large David Ostwald 2024
Councilmember, Ward I Thomas Tillberry 2022
Councilmember, Ward II Stephen Eggert 2022
Councilmember, Ward III Ann R. Bolkcom 2022
APPOINTED OFFICIALS
City Manager Walter T. Wysopal
City Attorney Sarah J. Sonsalla
Prosecuting Attorney City of Coon Rapids
City Clerk Melissa M. Moore
Department Heads:
Director of Finance/Treasurer Joseph A. Starks
Director of Public Safety Brian T. Weierke
Director of Public Works James P. Kosluchar
Director of Community Development Scott J. Hickok
Director of Community Services Michael W. Maher
Director of Employee Resources Rebecca A. Hellegers
December 31, 2021
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City ManagerCommunity Development Building InspectionsPlanningRental InspectionCommunity ServicesParks and RecreationSpringbrook Nature CenterEmployee ResourcesFinanceAccountingAssessingInformation TechnologyMunicipal LiquorPublic SafetyPoliceEmergency ManagementFirePublic WorksFacilities ManagementEngineeringForestryParks MaintenanceStreets MaintenanceFleet ServicesCity AttorneyCommunications and EngagementCity Clerk's OfficeUtilities 15
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II. FINANCIAL SECTION
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55 5th Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Fridley, Minnesota
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type
activities, the aggregate 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, 2021, and the related notes to the financial statements, which
collectively comprise City of Fridley, Minnesota's basic financial statements as listed in the
table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all
material respects, the respective financial position of the governmental activities, the
business-type activities, the aggregate discretely presented component unit, each major fund,
and the aggregate remaining fund information of City of Fridley, Minnesota, as of December
31, 2021, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America (GAAS) and the standards applicable to financial audits contained
in Government Auditing Standards, issued by the Comptroller General of the United States.
Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are
required to be independent of City of Fridley, Minnesota and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinions.
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Report on Summarized Comparative Information
We have previously audited City of Fridley, Minnesota’s 2020 financial statements, and we
expressed unmodified audit opinions on the respective financial statements of the
governmental activities, the business-type activities, the aggregate discretely presented
component unit, each major fund, and the aggregate remaining fund information in our report
dated May 12, 2021. In our opinion, the summarized comparative information presented
herein as of and for the year ended December 31, 2020 is consistent, in all material respects,
with the audited financial statements from which it has been derived.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with accounting principles generally accepted in the United States
of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about City of
Fridley, Minnesota’s ability to continue as a going concern for twelve months beyond the
financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's report that includes our opinions. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in
accordance with GAAS and Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Misstatements
are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the
financial statements.
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In performing an audit in accordance with GAAS and Governmental Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the
audit.
Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, and design and perform audit procedures responsive to
those risks. Such procedures include examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit 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 City of Fridley, Minnesota's internal
control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about City of Fridley, Minnesota's ability to
continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain
internal control related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, the budgetary comparison schedule, and the
schedules of OPEB and pension information, as listed in the table of contents, be presented to
supplement the basic financial statements. Such information is the responsibility of
management and, 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.
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Supplementary 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
combining and individual nonmajor fund financial statements and schedules are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial
statements. The 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 nonmajor fund
financial statements and schedules are fairly stated, in all material respects, in relation to the
basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory and statistical sections but does not include the basic
financial statements and our auditor's report thereon. Our opinions on the basic financial
statements do not cover the other information, and we do not express an opinion or any form
of assurance thereon. In connection with our audit of the basic financial statements, our
responsibility is to read the other information and consider whether a material inconsistency
exists between the other information and the basic financial statements, or the other
information otherwise appears to be materially misstated. If, based on the work performed,
we conclude that an uncorrected material misstatement of the other information exists, we are
required to describe it in our report.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
May 12, 2022 on our consideration of 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
solely 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 the effectiveness
of City of Fridley, Minnesota's 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 City of Fridley, Minnesota’s internal control over financial
reporting and compliance.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
May 12, 2022
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Fridley (City), we offer readers of the City’s financial
statements this narrative overview and analysis of the financial activities of the City
for the fiscal year ended December 31, 2021. The City encourages readers to
consider the information presented here in conjunction with additional information
that we have furnished in the letter of transmittal, which can be found on pages 3
through 9 of this report.
Financial Highlights
The City’s assets and deferred outflows of resources exceeded its liabilities and
deferred inflows of resources at the close of the most recent fiscal year by
$77,942,586 (net position). Of this amount, $22,149,225 (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 2021, the City’s total net position increased by $5,233,602.
As of the close of the current fiscal year, the City’s governmental funds reported
combined ending fund balances of $37,386,282. Of this total amount, $3,740,977,
or 10% is restricted through legal restrictions or third–party agreements.
At the end of the current fiscal year, the General Fund balance of $10,725,339
included $105,578 in non–spendable, $20,849 in restricted, and $10,598,912 in
unassigned fund balance.
The City’s total debt decreased by $3,945,000 during the current fiscal year. Total
debt outstanding at December 31, 2021 is $61,645,000.
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the City’s
basic financial statements. The City’s basic financial statements comprise of 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’s
finances, in a manner similar to a private sector business. The statement of net
position presents information on all of the City’s assets, deferred outflows of
resources, liabilities, and deferred inflows of resource, with the remainder reported
as net position. Over time, increases or decreases in net position may serve as a
25
Management’s Discussion and Analysis
useful indicator of whether the financial position of the City is improving or
deteriorating.
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
that are principally supported by taxes and intergovernmental revenues (i.e.,
governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees and charges (i.e., business–type
activities). The governmental activities of the City include general government,
public safety, public works, community development, and recreation. The business–
type activities of the City include Municipal Liquor, Water, Sanitary Sewer and Storm
Water.
The government–wide financial statements can be found on pages 39 through 41 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, 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 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
expenditures, and change in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
26
Management’s Discussion and Analysis
The City maintains five 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, Street Improvement,
CARES/ARPA, and Community Investment 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 adopts an annual appropriated budget for its General Fund, the Cable
Television (TV), Solid Waste Abatement, Springbrook Nature Center, and Police
Activity 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 42
through 45 of this report.
Proprietary funds. The City maintains four enterprise funds and two 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 uses enterprise funds to account for its
Municipal Liquor, Water, Sanitary Sewer, and Storm Water operations. The City
uses internal service funds to account for its Employee Benefits and Self–insurance.
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, Sanitary Sewer, Storm Water and
Municipal Liquor operations, all of which are considered to be major funds of the
City. 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 48 through
53 of this report.
27
Management’s Discussion and Analysis
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’s own programs. The accounting used for fiduciary
funds is much like that used for proprietary funds. The basic fiduciary fund financial
statement can be found on page 54 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 57 through 101 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 109 through 131 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, assets exceeded liabilities
by $77,942,586 at the close of the most recent fiscal year.
A significant portion of the City's net position ($52,030,240 or 67%) 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 uses
these capital assets to provide services to citizens; consequently, these assets are
not available for future spending. Although the City’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.
28
Management’s Discussion and Analysis
City of Fridley’s Net Position
2021 2020 2021 2020 2021 2020
Current and other assets $44,599,512 $41,217,118 $13,888,898 $13,633,597 $58,488,410 $54,850,715
Capital assets 74,905,330 78,497,282 26,731,616 26,710,575 101,636,946 105,207,857
Total assets $119,504,842 $119,714,400 $40,620,514 $40,344,172 $160,125,356 $160,058,572
Total deferred outflows of resources 9,204,400 4,169,839 13,069 14,276 9,217,469 4,184,115
Long-term liabilities outstanding $67,101,539 $73,308,202 $3,163,587 $4,872,659 $70,265,126 $78,180,861
Other liabilities 7,132,824 5,487,217 2,168,730 3,296,268 9,301,554 8,783,485
Total liabilities $74,234,363 $78,795,419 $5,332,317 $8,168,927 $79,566,680 $86,964,346
Total deferred inflows of resources 11,826,207 4,567,860 7,352 1,497 11,833,559 4,569,357
Net position:
Net investment in capital assets $28,987,129 $31,075,685 $23,043,111 $21,135,232 $52,030,240 $52,210,917
Restricted 3,763,121 3,662,136 - - 3,763,121 3,662,136
Unrestricted 9,898,422 5,783,139 12,250,803 11,052,792 22,149,225 16,835,931
Total net position $42,648,672 $40,520,960 $35,293,914 $32,188,024 $77,942,586 $72,708,984
Governmental Activities Business-Type Activities Totals
The City adopted accounting guidance, Governmental Account Standards Board
(GASB) Statement No. 68, Accounting and Financial Reporting for Pensions – an
Amendment of GASB Statement No. 27 in 2016. Essentially, the standard required
the unfunded portion of defined benefit pension plans to be reported by all
participating employers. Recording the net pension liability and the pension related
deferred outflows and inflows of resources do not change the City’s future funding
requirements or obligations under the plans, which are determined by Minnesota
statutes.
Net position was negatively impacted by $10,052,484 at December 31, 2021 due to
pension–related amounts included in the above schedule related to the standard are
as follows:
Deferred outflows of resources $8,726,017
Deferred inflows of resources (11,557,042)
Noncurrent liabilities (7,221,459)
Total ($10,052,484)
A portion of the City’s net position represents resources that are subject to external
restrictions on how they may be used. The remaining balance of $22,149,225 in
unrestricted net position may be used to meet the City’s ongoing obligations to
citizens and creditors.
29
Management’s Discussion and Analysis
At the end of the current fiscal year, the City 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’s net position by $2,127,712. Capital
grants and contributions decreased by $4,831,235. In 2020, $2,735,930 million of
MSA construction monies was recognized as revenue compared to $637,615 for
2021 . Also, in 2020 there was $2,228,710 in contributed assets compared to $0 in
2021. Operating grants and contributions decreased by $120,025. This decrease is
the result of an overall decrease in donations for 2021. In addition, property taxes
increased $707,736 with a 4.85% levy increase. Other general revenues decreased
$3,185,372, in part due to the City receiving $2,171,608 of federal Coronavirus
Relief Fund monies in 2020. 2021 expenses decreased by $14,711,734. The
decrease is largely due to the payment of $14,962,612 to the Housing and
Redevelopment Authority for the pay-off of the Northern Stacks TIF Note in 2020.
City of Fridley’s Changes in Net Position
2021 2020 2021 2020 2021 2020
Revenues:
Program revenues:
Charges for services $6,096,585 $5,495,120 $19,882,607 $18,312,149 $25,979,192 $23,807,269
Operating grants and contributions 1,483,495 1,603,520 - 118,410 1,483,495 1,721,930
Capital grants and contributions 1,265,349 6,096,584 275,449 163,816 1,540,798 6,260,400
General revenues:
Property taxes 16,932,793 16,225,057 - - 16,932,793 16,225,057
Grants and contributions not
restricted to specific programs 1,848,065 3,948,112 - - 1,848,065 3,948,112
Unrestricted investment earnings (180,488) 980,709 (24,062) 262,616 (204,550) 1,243,325
Gain (loss) on sale of property 129,604 21,429 12,450 - 142,054 21,429
Other 266,241 298,544 880 1,657 267,121 300,201
Total revenues 27,841,644 34,669,075 20,147,324 18,858,648 47,988,968 53,527,723
Expenses:
General government 5,851,445 6,003,817 - - 5,851,445 6,003,817
Public safety 9,816,095 9,946,434 - - 9,816,095 9,946,434
Public works 5,698,161 5,304,937 - - 5,698,161 5,304,937
Community development 1,051,339 16,037,288 - - 1,051,339 16,037,288
Recreation and naturalist 1,754,110 1,459,005 - - 1,754,110 1,459,005
Interest on long-term debt 1,881,282 2,012,685 - - 1,881,282 2,012,685
Liquor - - 6,552,204 6,115,659 6,552,204 6,115,659
Water - - 3,086,716 3,192,159 3,086,716 3,192,159
Sewer - - 5,776,014 5,911,370 5,776,014 5,911,370
Storm water - - 1,288,000 1,243,060 1,288,000 1,243,060
Total expenses 26,052,432 40,764,166 16,702,934 16,462,248 42,755,366 57,226,414
Increase (decrease) in net position before transfers 1,789,212 (6,095,091) 3,444,390 2,396,400 5,233,602 (3,698,691)
Transfers 338,500 257,504 (338,500) (257,504) - -
Increase in net position 2,127,712 (5,837,587) 3,105,890 2,138,896 5,233,602 (3,698,691)
Net position - January 1 40,520,960 46,358,547 32,188,024 30,049,128 72,708,984 76,407,675
Net position - December 31 $42,648,672 $40,520,960 $35,293,914 $32,188,024 $77,942,586 $72,708,984
Business-Type Activities TotalsGovernmental Activities
30
Management’s Discussion and Analysis
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenses:
Charges for services
22%
Operating grants and
contributions
5%
Capital grants and
contributions
4%
Property taxes
61%
Grants and
contributions not
restricted to specific
programs
7%
Unrestricted
investment earnings
-1%Others
1%
Governmental Activities - Revenues
General
government
22%
Public safety
38%
Public works
22%
Community
development
4%
Parks and
recreation
7%
Interest on long-
term debt
7%
Governmental Activities - Expenses
31
Management’s Discussion and Analysis
Business–Type Activities
Business–type activities increased net position by $3,105,890. This increase is
primarily due to an increase in customer billings in the utility funds.
Business–Type of Activities – Program Revenues vs Operating Expenses
Charges for services
99%
Unrestricted investment
earnings
0%
Capital grants and contributions
1%
Opertaing grants and
contributions
Less than 1%
Grants and
contributions not
restricted to specific
programs
Less than 1%
Loss on sale of property
Less than 1%
Other
0%
Business-Type Activities - Revenues
Liquor
39%
Sewer
35%
Water
18%
Storm Water
8%
Business-Type Activities - Expenses
`
32
Management’s Discussion and Analysis
Financial Analysis of the Government's Funds
Governmental funds. The focus of the City’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’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’s governmental funds reported a combined
ending fund balance of $37,386,262.
The General Fund’s fund balance decreased by $2,968,486 in 2021. This was more
than the $0 anticipated fund balance change with the 2021 budget. Per policy, the
City transferred $4,321,388 to the Community Investment Fund in 2021. Investment
income came in $149,885 under budget, Permit revenue came in $214,656 over
budget and the City received $214,651 in additional intergovernmental revenues.
The City was also $156,982 above budget in charges for services.
The Debt Service Fund increased by $101,279 in 2021.
The Street Improvements Fund has an assigned fund balance of $2,656,006 and is
identified as a major fund. The fund balance increased by $400,879 in 2021.
The Community Investment Fund has a committed fund balance of $13,339,393 and
is identified as a major fund. The fund balance increased $4,264,440. This fund has
an interfund loan to the Water fund in the amount of $2,962,519 to finance the Locke
Park Water Treatment Plant project and an interfund loan to the Water, Sewer and
Storm Water funds totaling $1,120,000 to pay-off the 2010A Bonds.
The CARES/APPA fund has $1,520,444 in unearned revenue at December 31,
2021.
Non–major special revenue funds decreased by $40,579 in 2021.
Non–major capital project funds increased by $456,907 in 2021. This was mainly
due to spending $324,636 less in the equipment fund due to COVID-19 related
supply issues. In addition, the market for used equipment was up which resulted in a
$11,604 increase in sales of assets over budget.
Proprietary funds. The City’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: Municipal
Liquor, $1,700,833; Water, $3,484,311; Sanitary Sewer, $4,397,092; and Storm
Water, $2,643,538. The Municipal Liquor, Water, Sanitary Sewer, and Storm Water
funds increased in net position of $362,111, $1,547,079, $524,243 and $549,074,
respectively.
33
Management’s Discussion and Analysis
Budgetary Highlights
General Fund
The original revenue and expenditure budgets were not amended.
Operating expenditures in total were less than the final budgetary estimates by
$380,539. The Finance Department was under budget by $70,604, primarily due to
savings in personal services resulting from staff shortages in the last quarter. Non-
Departmental was under budget by $60,431 as money is allotted in this department
for mid-year staff promotions and due to higher-than-average staff turnover, the
additional budget authority was not needed. Community Services was under budget
by $114,344 due to fewer program offerings resulting in lower contractual services.
Community Development was under budget by $79,755 primarily due delays in filling
open positions in the midst of the pandemic, along with fewer property abatements.
Total revenues were more than the final budgetary estimates by $969,463. Special
assessments came in $137,559 over budget due to timing of project completion.
Permit revenues exceeded budget estimates by $214,656 mainly due to an increase
in heating and plumbing permits. Increases in intergovernmental revenue over
budget by $214,651 were largely due to higher than anticipated state aid, additional
state grants and increases in public safety pensions. These increases had an offset
of $193,729 due to a change in the fair value of investments.
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and
business type activities as of December 31, 2021, amounts to $101,636,946 (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.
City of Fridley’s Capital Assets
(Net of Depreciation)
2021 2020 2021 2020 2021 2020
Land $5,502,104 $5,502,104 $699,047 $699,047 $6,201,151 $6,201,151
Buildings and structures 45,505,334 47,604,554 5,807,043 5,157,816 51,312,377 52,762,370
Improvements other than buildings 3,473,964 3,672,407 - - 3,473,964 3,672,407
Machinery and equipment 4,969,485 5,834,664 850,547 1,070,811 5,820,032 6,905,475
Infrastructure 15,249,880 15,840,082 19,341,119 19,493,115 34,590,999 35,333,197
Construction in progress 204,563 43,471 33,860 289,786 238,423 333,257
Total Capital Assets $74,905,330 $78,497,282 $26,731,616 $26,710,575 $101,636,946 $105,207,857
Governmental Activities Business-Type Activities Totals
Additional information on the City’s capital assets can be found in Note 5.
34
Management’s Discussion and Analysis
Long-term debt. At the end of the current fiscal year, the City had total bonded
debt outstanding of $61,645,000. This is an decrease of $3,945,000 from 2021.
$44,495,000 of this is for General Obligation Improvement Debt, which is supported
by special assessments and property tax levies. $13,420,000 is General Obligation
Tax Increment Debt which is support by tax increments. An additional $150,000 is
for General Obligation Equipment Certificate Debt, which finances the City’s capital
equipment purchases. $3,580,000 is General Obligation Utility Revenue Debt, which
is financed by the respective Utility Fund. In addition, there is long–term debt in the
amount of $1,148,400 for compensated absences.
Additional information on the City’s long–term debt can be found in Note 6.
City of Fridley’s Outstanding Debt
The City of Fridley has an Aa2 rating.
General Obligation Improvement Bonds, General Obligation Equipment Certificates,
General Obligation Revenue Bonds, the related premiums or discounts, and
Compensated Absences are as follows:
2021 2020 2021 2020 2021 2020
General Obligation Improvement Bonds $44,495,000 $45,790,000 $ - $ - $44,495,000 $45,790,000
General Obligation Tax Increment Bonds 13,420,000 14,050,000 - - 13,420,000 14,050,000
General Obligation Revenue Bonds - - 3,580,000 5,455,000 3,580,000 5,455,000
General Obligation Equipment Certificates 150,000 295,000 - - 150,000 295,000
Compensated Absences 1,148,400 1,115,436 - - 1,148,400 1,115,436
Bond issuance premium/discount 2,135,244 2,335,572 108,505 120,343 2,243,749 2,455,915
Total $61,348,644 $63,586,008 $3,688,505 $5,575,343 $65,037,149 $69,161,351
Governmental Activities Business-Type Activities Totals
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 is
$92,227,783. Only $44,645,000 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’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, 7071 University Avenue NE, Fridley, Minnesota 55432.
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36
BASIC FINANCIAL STATEMENTS
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38
Exhibit A-1
Governmental Business-Type
Activities Activities 2021 2020 2021 2020
Assets:
Cash and investments $37,061,270 $12,737,225 $49,798,495 $44,589,275 $14,466,642 $12,075,562
Receivables:
Accounts 175,805 3,826,465 4,002,270 3,610,298 60,141 72,288
Taxes 436,082 - 436,082 560,345 23,657 350,453
Special assessments 1,240,696 25,369 1,266,065 1,493,232 - -
Mortgage - - - - 1,806,444 1,389,674
Notes - - - - 1,000,000 1,000,000
Interest 78,348 - 78,348 106,792 16,397 18,773
Due from component unit 496,534 - 496,534 531,116 - -
Due from other governments 947,709 6,135 953,844 2,657,124 - -
Internal balances 4,057,490 (4,057,490) - - - -
Prepaid items - 400,496 400,496 380,452 - -
Inventories - at cost 105,578 950,698 1,056,276 922,081 - -
Land held for resale - - - - 367,130 293,130
Capital assets (net of accumulated depreciation):
Land 5,502,104 699,047 6,201,151 6,201,151 1,011,755 1,011,755
Buildings and structures 45,505,334 5,807,043 51,312,377 52,762,370 - -
Improvements other than buildings 3,473,964 - 3,473,964 3,672,407 - -
Machinery and equipment 4,969,485 850,547 5,820,032 6,905,475 - -
Infrastructure 15,249,880 19,341,119 34,590,999 35,333,197 - -
Construction in progress 204,563 33,860 238,423 333,257 - -
Total assets 119,504,842 40,620,514 160,125,356 160,058,572 18,752,166 16,211,635
Deferred outflows of resources:
Related to other post employment benefits 478,383 13,069 491,452 461,020 517 770
Related to pensions 8,726,017 - 8,726,017 3,723,095 - -
Total deferred outflows of resources 9,204,400 13,069 9,217,469 4,184,115 517 770
Liabilities:
Due to primary government - - - - 497,142 530,597
Accounts payable 623,454 548,713 1,172,167 1,366,986 529,184 444,644
Deposits payable 213,077 50,282 263,359 218,801 - -
Contracts payable 222,516 49,848 272,364 411,251 - -
Due to other governments 24,452 609,748 634,200 1,510,235 - 23,463
Salaries payable 727,476 96,454 823,930 718,966 - -
Accrued interest payable 863,385 30,172 893,557 941,194 - -
Unearned revenue 1,522,530 218,513 1,741,043 39,470 - -
Compensated absences payable:
Due within one year 830,934 - 830,934 751,582 - -
Due in more than one year 317,466 - 317,466 363,854 - -
Other post employment benefits payable:
Due in more than one year 1,467,370 40,081 1,507,451 1,595,283 1,585 2,821
Bonds payable:
Due within one year 2,105,000 565,000 2,670,000 2,825,000 - -
Due in more than one year 58,095,244 3,123,506 61,218,750 65,220,915 - -
Net pension liability:
Due in more than one year 7,221,459 - 7,221,459 11,000,809 - -
Total liabilities 74,234,363 5,332,317 79,566,680 86,964,346 1,027,911 1,001,525
Deferred inflows of resources:
Related to other post employment benefits 269,165 7,352 276,517 45,690 291 81
Related to pensions 11,557,042 - 11,557,042 4,523,667 - -
Total deferred outflows of resources 11,826,207 7,352 11,833,559 4,569,357 291 81
Net position:
Net investment in capital assets 28,987,129 23,043,111 52,030,240 52,210,917 1,011,755 1,011,755
Restricted for:
Debt service 3,587,890 - 3,587,890 3,497,500 - -
Tax increment purposes - - - - 3,894,177 2,352,805
Police forfeitures 100,069 - 100,069 83,703 - -
Cable television equipment 52,095 - 52,095 54,202 - -
Donations 23,067 - 23,067 26,731 - -
Unrestricted 9,898,422 12,250,803 22,149,225 16,835,931 12,818,549 11,846,239
Total net position $42,648,672 $35,293,914 $77,942,586 $72,708,984 $17,724,481 $15,210,799
Total
Primary Government
Housing & Redevelopment Authority
Component Unit
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2021
With Comparative Totals For December 31, 2020
The accompanying notes are an integral part of these financial statements.
39
Operating Capital
Charges For Grants and Grants and
Expenses Services Contributions Contributions
Functions/Programs
Primary government:
Governmental activities:
General government $5,851,445 $1,623,061 $203,485 $ -
Public safety 9,816,095 2,066,986 848,230 -
Public works 5,698,161 874,269 428,970 1,265,349
Community development 1,051,339 1,299,234 - -
Parks and recreation 1,754,110 233,035 2,810 -
Interest on long-term debt 1,881,282 - - -
Total governmental activities 26,052,432 6,096,585 1,483,495 1,265,349
Business-type activities:
Liquor 6,552,204 7,290,355 - -
Water 3,086,716 4,666,860 - -
Sewer 5,776,014 6,325,191 - -
Storm water 1,288,000 1,600,201 - 275,449
Total business-type activities 16,702,934 19,882,607 - 275,449
Total primary government $42,755,366 $25,979,192 $1,483,495 $1,540,798
Component unit:
Housing and Redevelopment Authority $4,201,772 $710,395 $ - $ -
Total component unit $4,201,772 $710,395 $ - $ -
General revenues:
Property taxes
Tax increment collections
Grants and contributions not
restricted to specific programs
Investment income/(loss)
Gain on sale of property
Other reimbursements
Other
Transfers
Total general revenues
and transfers
Change in net position
Net position - January 1
Net position - December 31
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2021
With Comparative Totals For The Year Ended December 31, 2020
Program Revenues
The accompanying notes are an integral part of these financial statements.
40
Exhibit A-2
Governmental Business-Type
Activities Activities 2021 2020 2021 2020
($4,024,899) $ - ($4,024,899) ($4,291,670) $ - $ -
(6,900,879) - (6,900,879) (6,948,155) - -
(3,129,573) - (3,129,573) 2,049,864 - -
247,895 - 247,895 (14,966,580) - -
(1,518,265) - (1,518,265) (1,399,716) - -
(1,881,282) - (1,881,282) (2,012,685) - -
(17,207,003) - (17,207,003) (27,568,942) - -
- 738,151 738,151 592,880 - -
- 1,580,144 1,580,144 951,090 - -
- 549,177 549,177 48,706 - -
- 587,650 587,650 539,451 - -
- 3,455,122 3,455,122 2,132,127 - -
(17,207,003)3,455,122 (13,751,881) (25,436,815) $ - $ -
($3,491,377) ($3,615,253)
(3,491,377) (3,615,253)
16,932,793 - 16,932,793 16,225,057 565,967 529,319
- - - - 4,934,802 4,257,538
1,848,065 - 1,848,065 3,948,112 - -
(180,488)(24,062) (204,550) 1,243,325 (75,683)100,803
129,604 12,450 142,054 21,429 145,283 2,108,063
- 880 880 - - -
266,241 - 266,241 300,201 434,690 400,502
338,500 (338,500) - - - -
19,334,715 (349,232) 18,985,483 21,738,124 6,005,059 7,396,225
2,127,712 3,105,890 5,233,602 (3,698,691) 2,513,682 3,780,972
40,520,960 32,188,024 72,708,984 76,407,675 15,210,799 11,429,827
$42,648,672 $35,293,914 $77,942,586 $72,708,984 $17,724,481 $15,210,799
Total Redevelopment Authority
Housing &
Component UnitNet (Expense) Revenue and Changes in Net Position
Primary Government
The accompanying notes are an integral part of these financial statements.
41
General Debt Service
Cash and investments $11,166,058 $3,498,586
Receivables:
Accounts 52,432 -
Taxes 342,925 81,519
Special assessments 121,356 613
Interest 78,348 -
Due from component unit 2,006 -
Due from other governments 111,422 -
Due from other funds 16,872 -
Inventories, at cost 105,578 -
Total assets $11,996,997 $3,580,718
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable $240,197 $ -
Deposits payable 168,091 -
Contracts payable - -
Due to other governments 23,811 -
Due to other funds - -
Salaries payable 549,225 -
Unearned revenue - -
Total liabilities 981,324 -
Deferred inflows of resources:
Unavailable revenue 290,334 44,841
Fund balance:
Nonspendable 105,578 -
Restricted 20,849 3,587,889
Committed - -
Assigned - -
Unassigned 10,598,912 (52,012)
Total fund balance 10,725,339 3,535,877
Total liabilities, deferred inflows of resources, and fund balance $11,996,997 $3,580,718
Assets
CITY OF FRIDLEY, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2021
With Comparative Totals For December 31, 2020
The accompanying notes are an integral part of these financial statements.
42
Exhibit A-3
Street
Improvements
Community
Investment CARES/ARPA
Other
Governmental
Funds
Intra-Activity
Eliminations
2021 2020
$2,178,274 $9,255,262 $1,535,234 $6,829,654 $ - $34,463,068 $29,907,634
- - - 123,373 - 175,805 165,726
18 489 - 11,131 - 436,082 560,345
1,048,909 17,247 - 52,571 - 1,240,696 1,469,195
- - - - - 78,348 106,792
- - - 494,528 - 496,534 531,116
697,505 - - 138,782 - 947,709 2,520,835
- 4,082,519 - - (16,872) 4,082,519 3,285,970
- - - - - 105,578 65,779
$3,924,706 $13,355,517 $1,535,234 $7,650,039 ($16,872) $42,026,339 $38,613,392
$34,299 $ - $ - $347,824 $ - $622,320 $554,955
11,300 - - 33,686 - 213,077 168,801
178,935 - - 43,581 - 222,516 299,973
- - - 641 - 24,452 109,293
- - - 16,872 (16,872) - -
- - - 32,338 - 581,563 520,936
- - 1,520,444 2,086 - 1,522,530 -
224,534 - 1,520,444 477,028 (16,872) 3,186,458 1,653,958
1,044,166 16,124 - 58,154 - 1,453,619 1,786,834
- - - - 105,578 65,779
- - - 132,239 - 3,740,977 3,591,226
- 13,339,393 14,790 2,826,771 - 16,180,954 11,550,431
2,656,006 - - 4,155,847 - 6,811,853 6,362,198
- - - - - 10,546,900 13,602,966
2,656,006 13,339,393 14,790 7,114,857 - 37,386,262 35,172,600
$3,924,706 $13,355,517 $1,535,234 $7,650,039 ($16,872) $42,026,339 $38,613,392
Fund balance reported above $37,386,262 $35,172,600
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.74,905,330 78,497,282
Other long-term assets are not available to pay for current-period expenditures
and, therefore, are reported as unavailable revenue in the funds.1,453,619 1,786,834
Long-term liabilities, including bonds payable, are not due and payable in the
current period and, therefore, are not reported in the funds.(61,063,629) (63,359,021)
Other post employment benefits are not due and payable in the current period
and, therefore, are not reported in the funds.(1,258,152) (1,140,416)
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.(8,774,758) (10,436,319)
Net position of governmental activities $42,648,672 $40,520,960
Totals Governmental Funds
The accompanying notes are an integral part of these financial statements.
43
General Debt Service
Revenues:
Taxes $13,301,862 $3,182,936
Special assessments 167,759 10,336
Licenses and permits 1,265,772 -
Intergovernmental revenue 2,019,751 -
Charges for services 2,267,682 -
Fines and forfeits 127,549 -
Investment income (loss)(49,685)(5,365)
Contributions and donations 11,684 -
Payment from component unit - 1,090,038
Interest on loan - -
Miscellaneous:
Other 234,679 -
Total revenues 19,347,053 4,277,945
Expenditures:
Current:
General government 3,815,797 -
Public safety 9,231,935 -
Public works 3,402,718 -
Community development 1,068,455 -
Parks and recreation 664,846 -
Debt service - 4,176,666
Capital outlay - -
Total expenditures 18,183,751 4,176,666
Excess (deficiency) of revenues over (under) expenditures 1,163,302 101,279
Other financing sources (uses):
Proceeds from sale of capital assets - -
Issuance of bonds - -
Premium on bond issuance - -
Transfers in 189,600 -
Transfers out (4,321,388) -
Total other financing sources (uses)(4,131,788) -
Net change in fund balance (2,968,486)101,279
Fund balance - January 1 13,693,825 3,434,598
Fund balance - December 31 $10,725,339 $3,535,877
CITY OF FRIDLEY, MINNESOTA
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2021
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
With Comparative Totals For The Year Ended December 31, 2020
The accompanying notes are an integral part of these financial statements.
44
Exhibit A-4
Street
Improvements
Community
Investment CARES/ARPA
Other
Governmental
Funds
Intra-Activity
Eliminations
2021 2020
$ - $777 $ - $492,123 $ - $16,977,698 $16,133,737
574,831 26,803 60,660 - 840,389 819,347
- - - 260,474 - 1,526,246 1,559,003
656,602 - - 1,212,196 - 3,888,549 8,111,582
- - - 962,821 - 3,230,503 2,795,287
- - - 23,670 - 151,219 169,156
(7,305)(57,297)(838)(44,328) - (164,818)898,347
- - - 24,843 - 36,527 85,753
- - - - - 1,090,038 863,674
- 98,579 - - - 98,579 108,000
- - - 31,562 - 266,241 283,304
1,224,128 68,862 (838) 3,024,021 - 27,941,171 31,827,190
- 25,810 - 1,181,962 - 5,023,569 5,177,833
- - - 530,012 - 9,761,947 8,924,373
35,632 - - 13,527 - 3,451,877 3,222,623
- - - 5,196 - 1,073,651 15,999,027
- - - 773,423 - 1,438,269 1,175,270
- - - 8 - 4,176,674 3,561,580
686,517 - - 583,109 - 1,269,626 4,412,516
722,149 25,810 0 3,087,237 - 26,195,613 42,473,222
501,979 43,052 (838)(63,216) - 1,745,558 (10,646,032)
- - - 129,604 - 129,604 21,429
- - - - - - 4,540,000
- - - - - - 619,659
- 4,482,190 - 350,000 (4,683,290)338,500 338,500
(101,100)(260,802) - - 4,683,290 - (80,996)
(101,100) 4,221,388 0 479,604 - 468,104 5,438,592
400,879 4,264,440 (838)416,388 - 2,213,662 (5,207,440)
2,255,127 9,074,953 15,628 6,698,469 - 35,172,600 40,380,040
$2,656,006 $13,339,393 $14,790 $7,114,857 $ - $37,386,262 $35,172,600
Totals Governmental Funds
The accompanying notes are an integral part of these financial statements.
45
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46
Exhibit A-5
2021 2020
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)$2,213,662 ($5,207,440)
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 depreciation exceeded
capital outlays in the current period.(3,591,952) (106,368)
Contributed capital assets recorded as revenue in the statement of - 2,228,712
activities that do not provide current financial resources are not
reported as revenues in the funds.
Deferred revenues in the statement of activities that do not provide current
financial resources are not reported as revenues in the funds.(333,215) 419,156
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.2,270,328 (3,430,742)
Internal service funds are used by management to charge the cost of
certain activities to individual funds. This amount is net expenditures
attributable to governmental activities.1,661,561 512,127
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.(117,736) (73,010)
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.25,064 (180,022)
Change in net position of governmental activities (Exhibit A-2)$2,127,712 ($5,837,587)
RECONCILIATION OF THE STATEMENT OF REVENUES,
CITY OF FRIDLEY, MINNESOTA
With Comparative Totals For The Year Ended December 31, 2020
For The Year Ended December 31, 2021
TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
EXPENDITURES AND CHANGES IN FUND BALANCES OF
The accompanying notes are an integral part of these financial statements.
47
Assets:Liquor Water
Current assets:
Cash and investments $1,311,515 $5,885,194
Accounts receivable 3,304 1,614,285
Special assessments receivable - 21,121
Due from other governments - 1,688
Prepaid items - -
Inventories - at cost 860,554 90,144
2,175,373 7,612,432
Noncurrent assets:
Capital assets:
Land 151,946 147,485
Buildings and structures 536,891 8,302,096
Machinery and equipment 244,185 2,797,376
Infrastructure - 22,696,485
Construction in process - -
Total capital assets 933,022 33,943,442
Less: Allowance for depreciation (520,546) (19,650,347)
Net capital assets 412,476 14,293,095
Total noncurrent assets 412,476 14,293,095
Total assets 2,587,849 21,905,527
Deferred outflows of resources:
Related to pensions - -
Related to other post employment benefits 3,232 4,673
Total deferred outflows of resources 3,232 4,673
Liabilities:
Current liabilities:
Accounts payable 329,784 114,969
Deposits payable 282 -
Accrued interest payable - 30,172
Contracts payable - -
Due to other governments 65,064 220,481
Due to other funds - 3,717,519
Salaries payable 26,953 32,691
Payroll deductions payable - -
Compensated absences payable - -
Bonds payable - current - 565,000
Unearned revenue 43,962 -
Total current liabilities 466,045 4,680,832
Noncurrent liabilities:
Other post employment benefits 9,910 14,332
Compensated absences - noncurrent - -
Bonds payable - noncurrent - 3,123,506
Net pension liability - -
Total noncurrent liabilities 9,910 3,137,838
Total liabilities 475,955 7,818,670
Deferred inflows of resources:
Related to pensions - -
Related to other post employment benefits 1,817 2,629
Total deferred outflows of resources 1,817 2,629
Net position:
Net investment in capital assets 412,476 10,604,590
Unrestricted 1,700,833 3,484,311
Total net position $2,113,309 $14,088,901
Net position reported above
Adjustment to report the cumulative internal balance for the net effect
activity between the internal service fund and the enterprise funds over time
Net position of business-type activities (Exhibit A-1)
Business-Type Activities - Enterprise Funds
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2021
With Comparative Totals For Enterprise Funds For December 31, 2020
The accompanying notes are an integral part of these financial statements.
48
Exhibit A-6
Governmental Activities -
Sewer Storm Water 2021 2020 Internal Service Funds
$2,848,767 $2,691,749 $12,737,225 $12,187,858 $2,598,202
1,736,661 472,215 3,826,465 3,432,983 -
- 4,248 25,369 24,037 -
4,447 - 6,135 136,289 -
400,496 - 400,496 380,452 -
- - 950,698 856,302 -
4,990,371 3,168,212 17,946,388 17,017,921 2,598,202
22,800 376,816 699,047 699,047 -
903,244 - 9,742,231 8,726,784 -
1,229,371 423,635 4,694,567 4,743,735 -
10,864,383 13,850,095 47,410,963 46,451,932 -
- 33,859 33,859 289,786 -
13,019,798 14,684,405 62,580,667 60,911,284 -
(8,739,625) (6,938,533) (35,849,051) (34,200,709) -
4,280,173 7,745,872 26,731,616 26,710,575 -
4,280,173 7,745,872 26,731,616 26,710,575 -
9,270,544 10,914,084 44,678,004 43,728,496 2,598,202
- - - - 8,726,017
2,176 2,988 13,069 14,276 -
2,176 2,988 13,069 14,276 8,726,017
37,523 66,437 548,713 800,997 1,134
- 50,000 50,282 50,000 -
- - 30,172 52,745 -
- 49,848 49,848 111,278 -
324,193 10 609,748 1,400,942 -
210,000 155,000 4,082,519 3,285,970 -
15,839 20,971 96,454 85,836 -
- - - - 145,913
- - - - 830,934
- - 565,000 755,000 -
- 174,551 218,513 39,470 -
587,555 516,817 6,251,249 6,582,238 977,981
6,675 9,164 40,081 52,316 -
- - - - 317,466
- - 3,123,506 4,820,343 -
- - - - 7,221,459
6,675 9,164 3,163,587 4,872,659 7,538,925
594,230 525,981 9,414,836 11,454,897 8,516,906
- - - - 11,557,042
1,225 1,681 7,352 1,497 -
1,225 1,681 7,352 1,497 11,557,042
4,280,173 7,745,872 23,043,111 21,135,232 -
4,397,092 2,643,538 12,225,774 11,151,146 (8,749,729)
$8,677,265 $10,389,410 $35,268,885 $32,286,378 ($8,749,729)
$35,268,885 $32,286,378
25,029 (98,354)
$35,293,914 $32,188,024
TotalsBusiness-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
49
Liquor Water
Sales $7,290,355 $ -
Cost of sales (5,231,959) -
Gross profit 2,058,396 -
Operating revenues:
Customer billings - 4,663,743
Charges for services - -
Other revenues - 3,117
Total operating revenues - 4,666,860
Total gross profit and operating revenues 2,058,396 4,666,860
Operating expenses:
Personal services 708,858 759,387
Supplies and other charges:
Disposal charges - -
Other 610,852 1,184,947
Depreciation 36,669 996,798
Total operating expenses 1,356,379 2,941,132
Operating income (loss)702,017 1,725,728
Nonoperating revenues (expenses):
Intergovernmental revenue - -
Investment income (loss)(1,406)4,397
Insurance reimbursement - -
Interest and fiscal charges - (185,746)
Gain (loss) on sale of capital assets - 2,700
Other - -
Total nonoperating revenues (expenses)(1,406)(178,649)
Income (loss) before transfers and capital contributions 700,611 1,547,079
Transfers and capital contributions:
Transfers in - -
Transfers out (338,500) -
Capital contributions - -
Total contributions and transfers (338,500) -
Change in net position 362,111 1,547,079
Net position - January 1 1,751,198 12,541,822
Net position - December 31 $2,113,309 $14,088,901
Changes in net position reported above
Adjustment to report the cumulative internal balance for the net effect of activity
between the internal service funds and the enterprise funds over time.
Changes in net position of business-type activities (Exhibit A-2)
For The Year Ended December 31, 2021
Business-Type Activities - Enterprise Funds
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
With Comparative Totals For The Enterprise Funds For The Year Ended December 31, 2020
The accompanying notes are an integral part of these financial statements.
50
Exhibit A-7
Governmental Activities -
Sewer Storm Water Internal Service Funds
2021 2020
$ - $ - $7,290,355 $6,708,539 $ -
- - (5,231,959) (4,906,841) -
- - 2,058,396 1,801,698 -
6,325,191 1,600,200 12,589,134 11,600,924 -
- - - - 1,767,286
- 1 3,118 2,686 -
6,325,191 1,600,201 12,592,252 11,603,610 1,767,286
6,325,191 1,600,201 14,650,648 13,405,308 1,767,286
409,876 514,468 2,392,589 2,321,559 (262,052)
4,585,270 - 4,585,270 4,729,563 -
471,911 436,338 2,704,048 2,761,301 353,953
322,715 358,812 1,714,994 1,561,013 -
5,789,772 1,309,618 11,396,901 11,373,436 91,901
535,419 290,583 3,253,747 2,031,872 1,675,385
- - - 118,410 70,054
(14,197) (12,856) (24,062) 262,616 (15,670)
- - - - 55,175
(6,729) (4,982) (197,457) (268,276) -
9,750 - 12,450 - -
- 880 880 1,657 -
(11,176) (16,958) (208,189) 114,407 109,559
524,243 273,625 3,045,558 2,146,279 1,784,944
- - - 80,996 -
- - (338,500) (338,500) -
- 275,449 275,449 163,816 -
- 275,449 (63,051) (93,688) -
524,243 549,074 2,982,507 2,052,591 1,784,944
8,153,022 9,840,336 32,286,378 30,233,787 (10,534,673)
$8,677,265 $10,389,410 $35,268,885 $32,286,378 ($8,749,729)
$2,982,507 $2,052,591
123,383 86,305
$3,105,890 $2,138,896
Totals
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
51
Liquor Water
Cash flows from operating activities:
Receipts from customers and users $7,291,825 $4,591,930
Receipts from interfund services provided - -
Payment to suppliers (6,115,283) (1,362,347)
Payment to employees (708,695) (754,063)
Operating contribution - -
Net cash flows from operating activities 467,847 2,475,520
Cash flows from noncapital financing activities:
Intergovernmental revenue - -
Transfers in - -
Transfers out (338,500) -
Net cash flows from noncapital financing activities (338,500) -
Cash flows from capital and related
financing activities:
Acquisition of capital assets (10,000)(506,414)
Proceeds from sale of capital assets - 2,700
Proceeds from issuance of interfund loan - 755,000
Capital grants and contributions - -
Principal received on special assessments - -
Insurance reimbursement - -
Principal paid on revenue bonds - (1,445,000)
Repayment on interfund loan - (323,451)
Interest and paying agent fees on revenue bonds - (214,307)
Net cash flows from capital
and related financing activities (10,000)(1,731,472)
Cash flows from investing activities:
Investment income (loss)(1,406)4,397
Net increase (decrease) in cash and cash equivalents 117,941 748,445
Cash and cash equivalents - January 1 1,193,574 5,136,749
Cash and cash equivalents - December 31 $1,311,515 $5,885,194
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $702,017 $1,725,728
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation 36,669 996,798
Operating contribution - -
Changes in assets and liabilities:
Decrease (increase) in receivables (3,304)(74,930)
Decrease (increase) in prepaid items - -
Decrease (increase) in inventories (97,347)2,951
Decrease (increase) in deferred outflows of resources 301 391
Increase (decrease) in payables (176,428)(177,516)
Increase (decrease) in unearned revenue 4,492 -
Increase (decrease) in deferred inflows of resources 1,447 2,098
Total adjustments (234,170)749,792
Net cash provided by operating activities $467,847 $2,475,520
Noncash investing and financing activities
Capital contributions $ - $ -
Business-Type Activities - Enterprise Funds
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2021
With Comparative Totals For The Enterprise Funds For The Year Ended December 31, 2020
The accompanying notes are an integral part of these financial statements.
52
Exhibit A-8
Governmental Activities -
Sewer Storm Water Internal Service Funds
2021 2020
$6,144,449 $1,769,068 $19,797,272 $18,190,311 $ -
- - - - 1,778,875
(5,849,206) (413,789) (13,740,625) (12,147,778) (363,853)
(410,069) (514,317) (2,387,144) (2,278,570) (1,420,162)
- - - 160 -
(114,826) 840,962 3,669,503 3,764,123 (5,140)
- - - 118,410 70,054
- - - 80,996 -
- - (338,500) (338,500) -
- - (338,500) (139,094) 70,054
(712,338) (512,931) (1,741,683) (3,742,698) -
15,398 - 18,098 - -
210,000 155,000 1,120,000 3,285,970
- 275,449 275,449 163,816 -
- 880 880 1,497 -
- - - - 55,175
(245,000) (185,000) (1,875,000) (730,000) -
- - (323,451) - -
(10,062) (7,498) (231,867) (286,988) -
(742,002) (274,100) (2,757,574) (1,308,403) 55,175
(14,197) (12,856) (24,062) 262,616 (15,670)
(871,025) 554,006 549,367 2,579,242 104,419
3,719,792 2,137,743 12,187,858 9,608,616 2,493,783
$2,848,767 $2,691,749 $12,737,225 $12,187,858 $2,598,202
$535,419 $290,583 $3,253,747 $2,031,872 $1,675,385
322,715 358,812 1,714,994 1,561,013 -
- - - 160 -
(180,742) (5,684) (264,660) (131,497) 11,589
(20,044) - (20,044) 12,300 -
- - (94,396) 62,835 -
232 283 1,207 (8,083) (5,002,922)
(773,378) 21,079 (1,106,243) 225,331 (3,722,567)
- 174,551 179,043 9,659 -
972 1,338 5,855 533 7,033,375
(650,245) 550,379 415,756 1,732,251 (1,680,525)
($114,826) $840,962 $3,669,503 $3,764,123 ($5,140)
$ - $275,449 $275,449 $163,816 $ -
Totals
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
53
Exhibit A-9
2021
Assets:
Cash and investments $6,337
Accounts receivables 5,829
Total assets $12,166
Liabilities:
Accounts payable 12,166
Net Position:
Restricted $ -
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF FIDUCIARY NET POSITION - FIDUCIARY FUNDS
December 31, 2021
The accompanying notes are an integral part of these financial statements.
54
Exhibit A-10
2021
Additions:
Tax collections from other government $90,924
Total additions 90,924
Deductions:
Payments of tax to other governments 86,378
Administrative fee 4,546
Total deductions 90,924
Net increase in fiduciary net position -
Net position - beginning -
Net position - ending $ -
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - FIDUCIARY FUNDS
For The Year Ended December 31, 2021
The accompanying notes are an integral part of these financial statements.
55
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56
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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.
57
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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 and the fiduciary 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.
The Debt 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.
The CARES/ARPA Fund is used to account for monies received as a result of the pandemic.
The Street Improvements Fund is used to account for repairs and replacements of city streets
and street related equipment such as signs and street lights.
The Community Investment Fund is used to account for capital costs associated with the
parks and public utilities maintained by the City.
58
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
The government reports the following major proprietary funds:
The Liquor Fund accounts for operations of the municipal liquor stores.
The Water Fund accounts for the water service charges which are used to finance the water
system operating expenses.
The Sewer Fund accounts for the sewer service charges which are used to finance the
sanitary sewer system operating expenses.
The Storm 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, pension benefits,
and insurance deductibles 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.
Fiduciary Funds - Custodial Funds are used to account for monies on behalf of 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 operating revenues 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.
59
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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, Solid Waste Abatement Fund, Springbrook Nature Fund,
and the Police Activity 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.
8. As required by the City Charter, budgetary control is maintained within department at the
departmental level. This is the level of control at which expenditures may not legally
exceed appropriations.
60
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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.
The following is a listing of funds whose expenditures exceeded budgeted appropriations:
Final Amount Over
Budget Actual Budget
Nonmajor Funds:
Solid Waste Abatement Fund $538,770 $561,266 $22,496
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, except for investments in external investment pools that
meet GASB 79 requirements, 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 “due from/to other
funds.” All short-term interfund receivables and payables at December 31, 2021 are planned to
be eliminated in 2022. 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.
61
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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.
62
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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.
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.
63
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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 estimated useful life
in excess of two years and an initial cost of more than the following:
Land $1
Building and building improvements $25,000
Land improvements $25,000
Vehicles and equipment $10,000
Infrastructure $50,000
Capitalization Threshold
Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated acquisition 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 to the acquisition year or estimated acquisition year).
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.
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 10 – 20 years
Buildings and structures 10 – 40 years
Machinery and equipment 3 – 25 years
Infrastructure 15 – 50 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.
64
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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.
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.
65
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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.
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
will not be recognized as an outflow of resources (expense/expenditure) until then. The
government has two items that qualify for reporting in this category. They are the pension and
OPEB related deferred outflows of resources reported in the government-wide Statement of Net
Position and the proprietary funds Statement of Net Position.
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 pension related deferred inflows of resources reported in the government-wide Statement of
Net Position and the proprietary funds Statement of Net Position. The City also has a 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. Defined Benefit Pension Plans
For purposes of measuring the net pension liability, deferred outflows and inflows of resources,
and pension expense, information about the fiduciary net position of the Public Employees
Retirement Association (PERA) and additions to and deductions from PERA’s fiduciary net
position have been determined on the same basis as they are reported by PERA except that
PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of
employer payroll paid dates and benefit payments and refunds are recognized when due and
payable in accordance with the benefit terms. Investments are reported at fair value.
66
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
T. 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 ($61,063,629) difference are as
follows:
Bonds payable $58,065,000
Premium on bonds payable 2,135,244
Accrued interest payable 863,385
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities $61,063,629
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 ($3,591,952) difference are as follows:
Net book value of capital asset disposals $ -
Capital outlay 1,269,628
Depreciation expense (4,861,580)
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities ($3,591,952)
67
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Another element of that reconciliation states that “revenues in the statement of activities that
do not provide current financial resources are not reported as revenues in the funds”. The
details of this ($333,215) difference are as follows:
Unavailable revenue - general property taxes:
At December 31, 2020 271,343
At December 31, 2021 (226,738)
Unavailable revenue - special assessments:
At December 31, 2020 1,465,491
At December 31, 2021 (1,226,881)
Unavailable revenue - miscellaneous
At December 31, 2020 50,000
At December 31, 2021 -
Net adjustments to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities $333,215
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
($2,270,328) difference are as follows:
Principal repayments:
G.O. improvement bonds $2,070,000
Amortization of premium on bonds issuance 200,328
Bond Premium -
Bond issuance -
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities $2,270,328
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
68
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
information should be read in conjunction with the City’s financial statements for the year ended
December 31, 2020, 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 fair value of collateral pledged must equal 110% of the deposits not covered by
insurance or bonds.
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. Minnesota Statute
118.A.03 identifies allowable forms of collateral.
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 fair value of collateral pledged must equal 110%
of deposits not covered by insurance or bonds. At times, deposits may be in excess of collateral
pledged.
B. Investments
Subject to rating, yield, maturity and issuer requirements as prescribed by statue, Minnesota
Statutes 118A.04 and 118A.05 authorized the City to invest in United States securities, state and
local securities, commercial paper, time deposits, high-risk mortgage-backed securities,
temporary general obligation bonds, repurchase agreements, Minnesota joint powers investment
trust and guaranteed investment contracts.
69
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
As of December 31, 2021 the City had the following investments and maturities:
Fair Less Over
Investment Type Rating Value Than 1 1-5 6-10 10 Years
Federal Home Loan Bank AAA $681,099 $ - $681,099 $ - $ -
Federal National Mortgage Association AAA 10,010,578 3,461,764 6,548,814 - -
Federal Home Loan Mortgage Corporation AAA 4,877,010 1,584,852 3,292,158 - -
Local government bonds Aaa-Aa3 7,593,657 1,003,790 6,589,867 - -
International Bonds N/A 747,668 - 747,668 - -
International Development Finance Corp N/A 4,894,742 - 4,894,742 - -
US Treasury Note N/A 12,505,173 - 12,505,173 - -
Brokered CDs N/R 1,658,466 247,375 1,411,091 - -
Money market N/R 4,174,291 4,174,291 - - -
Total $47,142,684 $10,472,072 $36,670,612 $ - $ -
Total investments $47,142,684
Deposits 2,650,811
Petty cash 5,000
Total cash and investments $49,798,495
Investment Maturities (in Years)
As of December 31, 2021 the HRA had the following investments and maturities:
Fair Less Over
Investment Type Rating Value Than 1 1-5 6-10 10 Years
Federal Home Loan Bank AAA $248,835 $ - $248,835 $ - $ -
Federal National Mortgage Association AAA 434,499 - 434,499 - -
Federal Home Loan Mortgage Corp AAA 1,257,854 - 1,257,854 - -
Local Government Bonds Aaa - AAA3 1,224,291 - 1,224,291 - -
International Development Finance Corp N/A 1,515,842 - 1,515,842 - -
International Bonds N/A 249,223 - 249,223 - -
US Treasury Note N/A 7,204,326 299,496 6,904,830 - -
Money Market N/R 2,139,099 2,139,099 - - -
Total $14,273,969 $2,438,595 $11,835,374 - -
Total investments $14,273,969
Deposits 192,673
Total cash and investments $14,466,642
Investment Maturities (in Years)
The City categorizes its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure the fair value of the asset. The hierarchy has three levels. Level 1 investments are valued
using inputs that are based on quoted prices in active markets for identical assets. Level 2
investments are valued using inputs other than quoted prices included in Level 1 that are observable
either directly or indirectly. Inputs for Level 2 include quoted prices for similar assets in active
markets, quoted prices for identical or similar assets in inactive markets, inputs other that quoted
prices that are observable for the asset, or inputs derived principally from or corroborated by
observable market data by correlation or other means. Level 3 investments are valued using inputs
that are unobservable.
70
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
The City has the following recurring fair value measurements as of December 31, 2021:
Investment Type 12/31/2021 Level 1 Level 2 Level 3
Investments at fair value:
Federal Home Loan Bank $681,099 $ - $681,099 $ -
Federal National Mortgage Association 10,010,578 - 10,010,578 -
Federal Home Loan Mortgage Corporation 12,505,173 - 12,505,173 -
Local government bonds 4,877,010 - 4,877,010 -
International Bonds 747,668 - 747,668 -
International Development Finance Corp 4,894,742 - 4,894,742 -
US Treasury 7,593,657 - 7,593,657 -
Brokered CDs 1,658,466 - 1,658,466 -
Total/Subtotal 42,968,393 $ - $42,968,393 $ -
Investments not categorized:
External investment pool - US Bank Fund 4,174,291
Total $47,142,684
Fair Value Measurement Using
The HRA has the following recurring fair value measurements as of December 31, 2021:
Investment Type 12/31/2021 Level 1 Level 2 Level 3
Investments at fair value:
Federal Home Loan Bank $248,835 $ - $248,835 $ -
Federal National Mortgage Association 434,499 - 434,499 -
Federal Home Loan Mortgage Corp 1,257,854 - 1,257,854 -
Local Government Bonds 1,224,291 - 1,224,291 -
International Development Finance Corp 1,515,842 - 1,515,842 -
International Bonds 249,223 - 249,223 -
US Treasury Note 7,204,326 - 7,204,326 -
Total/Subtotal $12,134,870 $ - $12,134,870 $ -
Investments not categorized:
Money market 2,139,099
Total $14,273,969
Fair Value Measurement Using
The City’s external investment pool PFM Fund is rated AAAm by Standard and Poor’s and the fair
value of the position in the pool is the same as the value of pool shares. The pool is managed to
maintain a portfolio weighted average maturity of no greater than 60 days and seeks to maintain a
constant net asset value (NAV) per share of $1. The pool measures their investments in accordance
with Government Accounting Standards Board Statement No. 79, at amortized cost. The PFM Fund
has no redemption requirements.
The City’s external investment pool investment is with the 4M fund which is regulated by Minnesota
Statures and the Board of Directors of the League of Minnesota Cities. The 4M fund is an unrated
pool and the fair value of pool shares. The pool is managed to maintain a portfolio weighted average
maturity of no greater than 60 days and seeks to maintain a constant net asset value (NAV) per share
of $1. The pool measures their investment in accordance with Government Accounting Standards
Board Statements No. 79, at amortized cost. The 4M Liquid Asset Fund has no redemption
requirement. The 4M Plus Fund requires funds to be deposited for a minimum of 14 calendar days.
Withdrawals prior to the 14-day restriction period are subject to a penalty equal to 7 days interest on
the amount withdrawn.
71
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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 – Credit risk is the risk that an issuer or other counterparty to an investment will be
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.
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:
International 10.38%
Federal Home Loan Mortgage Corporation 10.35%
US Treasury Note 26.53%
Federal National Mortgage Association 21.23%
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:
Various Local Gov't Bonds 10.62%
72
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
3. Receivables
Significant receivables balances not expected to be collected within one year of December 31, 2021 are
as follows:
Street Community Nonmajor
General Debt Service Improvements Investment Funds Total
Special assessments receivable $86,375 $224 $791,996 $11,941 $40,064 $930,600
Delinquent property taxes 141,672 34,070 - - 5,258 181,000
$228,047 $34,294 $791,996 $11,941 $45,322 $1,111,600
Major Funds
Primary Government
General Revolving BAE Northern
Fund Loan Stacks Total
Mortgage receivable $ - $1,806,444 $ - $1,806,444
Allowance for uncollectible accounts - - - -
Delinquent tax increment - - 3,944 3,944
$ - $1,806,444 $3,944 $1,806,444
HRA Component Unit
Major Funds
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:
Property Special
Taxes Assessments Miscellaneous Total
Major funds:
General $176,459 $113,875 $ - $290,334
Debt Service 44,546 295 - 44,841
Street Improvements 18 1,044,148 - 1,044,166
Community Investment 382 15,742 - 16,124
Nonmajor 5,363 52,791 - 58,154
Total unavailable revenue $226,768 $1,226,851 $ - $1,453,619
73
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
5. Capital Assets
Capital asset activity for the year ended December 31, 2021 was as follows:
Beginning Ending
Primary Government Balance Increases Decreases Balance
Governmental activities:
Capital assets, not being depreciated:
Land $5,502,104 $ - $5,502,104
Construction in progress 43,471 168,700 (7,608) 204,563
Total capital assets, not being depreciated 5,545,575 168,700 (7,608) 5,706,667
Capital assets, being depreciated:
Buildings and structures 53,577,177 5,145 - 53,582,322
Machinery and equipment 14,429,040 392,470 (691,591) 14,129,919
Improvements 5,330,908 98,135 - 5,429,043
Infrastructure 36,101,262 612,786 (245,813) 36,468,235
Total capital assets, being depreciated 109,438,387 1,108,536 (937,404) 109,609,519
Less accumulated depreciation for:
Buildings and structures 5,972,623 2,104,365 8,076,988
Machinery and equipment 8,594,376 1,257,649 (691,591) 9,160,434
Improvements 1,658,501 296,578 1,955,079
Infrastructure 20,261,180 1,202,988 (245,813) 21,218,355
Total accumulated depreciation 36,486,680 4,861,580 (937,404) 40,410,856
Total capital assets being depreciated - net 72,951,707 (3,753,044)0 69,198,663
Governmental activities capital assets - net $78,497,282 ($3,584,344) ($7,608) $74,905,330
Beginning Ending
Primary Government Balance Increases Decreases Balance
Business-type activities:
Capital assets, not being depreciated:
Land $699,047 $ - $699,047
Construction in progress 289,786 33,860 (289,786) 33,860
Total capital assets, not being depreciated 988,833 33,860 (289,786) 732,907
Capital assets, being depreciated:
Buildings and structures 8,726,784 1,028,580 (13,133) 9,742,231
Machinery and equipment 4,743,735 9,997 (59,167) 4,694,565
Infrastructure 46,451,932 959,031 47,410,963
Total capital assets, being depreciated 59,922,451 1,997,608 (72,300) 61,847,759
Less accumulated depreciation for:
Buildings and structures 3,568,968 373,706 (7,486) 3,935,188
Machinery and equipment 3,672,921 230,264 (59,167) 3,844,018
Infrastructure 26,958,820 1,111,024 28,069,844
Total accumulated depreciation 34,200,709 1,714,994 (66,653) 35,849,050
Total capital assets being depreciated - net 25,721,742 282,614 (5,647) 25,998,709
Business-type activities capital assets - net $26,710,575 $316,474 ($295,433) $26,731,616
Component Unit
Capital assets, not being depreciated:
Land $1,011,755 $ - $ - $1,011,755
74
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government $910,132
Public safety 1,194,300
Public works, including depreciation of general infrastructure assets 2,403,865
Community development 20,853
Parks and recreation 332,430
Total depreciation expense - governmental activities $4,861,580
Business-type activities:
Liquor $36,669
Water 996,798
Sewer 322,715
Storm water 358,812
Total depreciation expense - business-type activities $1,714,994
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.
75
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
As of December 31, 2021, the governmental long-term bonded debt and loans of the financial reporting
entity consisted of the following:
Governmental Activities:
$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%150,000
$49,130,000 General Obligation Improvement Bonds, Series 2017A due in varying annual
installments of $1,060,000 - $2,925,000 through February 1, 2042; interest at 3.00% - 5.00%44,495,000
$9,510,000 General Obligation Tax Increment Bonds, Series 2019A due in varying annual
installments of $930,000- $1,150,000 beginning February 1, 2027 through February 1,
2035; interest at 2.125% - 5.00%9,510,000
$4,540,000 General Obligation Tax Increment Bonds, Series 2020A due in varying annual
installments of $630,000- $860,000 beginning February 1, 2021 through February 1,
2026; interest at 5.00%3,910,000
Unamortized premium 2,135,244
Subtotal governmental activities $60,200,244
Business-Type Activities:
$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%-
$5,995,000 General Obligation Water Revenue Bonds of 2016A due in varying annual installments
of $275,000 - $575,000 through February 1, 2031; interest at 2.00% - 2.25%3,580,000
Unamortized premium 108,505
Subtotal business-type activities 3,688,505
Total primary government $63,888,749
76
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Annual debt service requirements to maturity for general obligation bonds and loans are as follows:
Year Ending
December 31, Principal Interest Principal Interest Principal Interest Principal Interest
2022 $1,250,000 $1,594,112 $705,000 $426,663 $150,000 $1,238 $565,000 $66,763
2023 1,465,000 1,526,238 745,000 390,413 - - 575,000 55,362
2024 1,535,000 1,451,238 780,000 352,288 - - 285,000 46,763
2025 1,615,000 1,372,488 820,000 312,288 - - 290,000 41,012
2026 1,695,000 1,289,738 860,000 270,288 - - 295,000 35,163
2027 1,780,000 1,211,763 930,000 225,538 - - 300,000 29,212
2028 1,850,000 1,139,163 975,000 177,912 - - 310,000 23,113
2029 1,925,000 1,073,288 1,025,000 143,287 - - 315,000 16,862
2030 1,985,000 1,014,637 1,045,000 122,587 - - 320,000 10,512
2031 2,040,000 954,263 1,065,000 101,487 - - 325,000 3,656
2032 2,105,000 890,771 1,085,000 79,987 - - - -
2033 2,170,000 822,619 1,105,000 58,087 - - - -
2034 2,240,000 750,956 1,130,000 35,737 - - - -
2035 2,315,000 676,937 1,150,000 12,219 - - - -
2036 2,390,000 600,481 - - - - - -
2037 2,465,000 520,047 - - - - - -
2038 2,550,000 433,825 - - - - - -
2039 2,640,000 343,000 - - - - - -
2040 2,730,000 249,025 - - - - - -
2041 2,825,000 151,812 - - - - - -
2042 2,925,000 51,188 - - - - - -
Total $44,495,000 $18,117,589 $13,420,000 $2,708,781 $150,000 $1,238 $3,580,000 $328,418
Governmental Activities Business-Type Activities
G.O. Improvement G.O. Equipment Certificates Revenue BondsG.O. Tax Increment
Primary Government
Long-term liability activity for the year ended December 31, 2021, was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
G.O. improvement bonds $59,840,000 $ - ($1,925,000) $57,915,000 $1,955,000
G.O. equipment certificates 295,000 - (145,000) 150,000 150,000
Total bonds payable 60,135,000 - (2,070,000) 58,065,000 2,105,000
Bond issuance premium/discount 2,335,572 - (200,328) 2,135,244 -
Compensated absences 1,115,436 820,409 (787,444) 1,148,401 830,934
Total governmental activities
long-term debt $63,586,008 $820,409 ($3,057,772) $61,348,645 $2,935,934
Business-type activities:
Bonds payable:
G.O. revenue bonds $5,455,000 $ - ($1,875,000) $3,580,000 $565,000
Bond issuance premium/discount 120,343 - (11,838) 108,505 -
Total business-type activities
long-term debt $5,575,343 $ - ($1,886,838) $3,688,505 $565,000
77
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Compensated absences are generally liquidated by the Employee Benefits Fund. All long-term bonded
indebtedness outstanding at December 31, 2021 is backed by the full faith and credit of the City, including
improvement and revenue bond issues. Delinquent assessments receivable at December 31, 2021
totaled $53,327.
Revenues Pledged
Percent of Debt service Principal Pledged
Use of total as a % of Term of Remaining and Interest Revenue
Bond Issue Proceeds Type debt service net revenues Pledge Principal paid received
2020A Housing Redevelopment Tax Increment 100%2020- $3,910,000 $841,250 $ -
2026
2019A Housing Redevelopment Tax Increment 100%2020- 9,510,000 248,787 -
2035
2017A Building Improvements Property Taxes 100%2017- 44,495,000 2,867,664 3,022,389
2042
2012A Capital Equipment Property Taxes 100%2013- 150,000 148,525 160,511
2022
2016A Water Revenue Bonds Infrastructure Improvements Water Customer 100% 13.56% 2016- 3,580,000 632,962 4,666,860
Net Revenue 2031
Water, Sewer and
2010A Utility Revenue Bonds Infrastructure Improvements Storm Customer 100% 10.91% 2011- - 1,373,875 12,592,252
Net Revenue 2026
Revenue Pledged Current Year
7. Defined Benefit Pension Plans
A. Plan Description
The City participates in the following cost-sharing multiple-employer defined benefit pension plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s
defined benefit pension plans are established and administered in accordance with Minnesota
Statutes, Chapters 353 and 356. PERA’s defined benefit pension plans are tax qualified plans
under Section 401(a) of the Internal Revenue Code.
78
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
1. General Employees Retirement Fund (GERF)
All full-time (with the exception of employees covered by PEPFF) and certain part-time
employees of the City are covered by the General Employees Retirement Fund (GERF).
GERF members belong to the Coordinated Plan. Coordinated Plan members are covered by
Social Security.
2. Public Employees Police and Fire Fund (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local
relief association, now covers all police officers and firefighters hired since 1980. Effective
July 1, 1999, the PEPFF also covers police officers and firefighters belonging to local relief
associations that elected to merge with and transfer assets and administration to PERA..
B. Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established by
state statute and can only be modified by the state legislature. Vested, terminated employees
who are entitled to benefits but are not receiving them yet, are bound by the provisions in effect at
the time they last terminated their public service.
1. GERF Benefits
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. Two methods are used
to compute benefits for PERA’s Coordinated members. Members hired prior to July 1, 1989
receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members
hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated members is
1.2% of average salary for each of the first ten years of service and 1.7% of average salary
for each additional year. Under Method 2, the accrual rate for Coordinated Plan members is
1.7% of average salary for all years of service. For members hired prior to July 1, 1989 a full
annuity is available when age plus years of service equal 90 and normal retirement age is 65.
For members hired on or after July 1, 1989, normal retirement age is the age for unreduced
Social Security benefits capped at 66.
Benefit increases are provided to benefit recipients each January. The postretirement
increase is equal to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with
a minimum increase of at least 1% and a maximum of 1.5%. Recipients that have been
receiving the annuity or benefit for at least a full year as of the June 30 before the effective
date of the increase will receive the full increase. Recipients receiving the annuity or benefit
for at least one month but less than a full year as of the June 30 before the effective date of
the increase will receive a reduced prorated increase. For members retiring on January 1,
2024 or later, the increase will be delayed until normal retirement age (age 65 if hired prior to
July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under
Rule of 90 are exempt from the delay to normal retirement.
79
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
2. PEPFF Benefits
Benefits for PEPFF members first hired after June 30, 2010 but before July 1, 2014 vest on a
prorated basis from 50% after five years up to 100% after ten years of credited service.
Benefits for PEPFF members first hired after June 30, 2014 vest on a prorated basis from
50% after ten years up to 100% after twenty years of credited service. The annuity accrual
rate is 3% of average salary for each year of service. For PEPFF members who were first
hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at
least 90.
Benefit increases are provided to benefit recipients each January. Beginning in 2020, the
postretirement increase will be fixed at 1%. Recipients that have been receiving the annuity
or benefit for at least 36 months as of the June 30 before the effective date of the increase
will receive the full increase. For recipients receiving the annuity or benefit for at least 25
months but less than 36 months as of the June 30 before the effective date of the increase
will receive a reduced prorated increase.
C. Contributions
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions.
Contribution rates can only be modified by the state legislature.
1. GERF Contributions
Coordinated Plan members were required to contribute 6.50% of their annual covered salary
in fiscal year 2021 and the City was required to contribute 7.50%. The City’s contributions to
the GERF for the year ended December 31, 2021, were $541,932. The City’s contributions
were equal to the required contributions as set by state statute.
2. PEPFF Contributions
Police and Fire members were required to contribute 11.80% of their annual covered salary
in fiscal year 2021 and the City was required to contribute 17.70%. The City’s contributions
to the PEPFF for the year ended December 31, 2021, were $839,373. The City’s
contributions were equal to the required contributions as set by state statute.
D. Pension Costs
1. GERF Pension Costs
At December 31, 2021, the City reported a liability of $4,214,932 for its proportionate share of
GERF’s net pension liability. The City net pension liability reflected a reduction due to the
State of Minnesota’s contribution of $16 million. The State of Minnesota is considered a non-
employer contributing entity and the state’s contribution meets the definition of a special
funding situation. The State of Minnesota’s proportionate share of the net pension liability
associated with the City totaled $128,697. The net pension liability was measured as of June
30, 2021, and the total pension liability used to calculate the net pension liability was
determined by an actuarial valuation as of that date. The City’s proportionate share of the net
pension liability was based on the City contributions received by PERA during the
80
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
measurement period for employer payroll paid dates from July 1, 2020 through June 30,
2021, relative to the total employer contributions received from all of PERA’s participating
employers. The City’s proportionate share was 0.987% at the end of the measurement
period and 00946% for the beginning of the period.
City's proportionate share of the net pension liability $4,214,932
State of Minnesota’s proportionate share of the net pension
liability associated with the City 128,697
Total $4,343,629
For the year ended December 31, 2021, the City recognized pension expense of $25,353 for
its proportionate share of the GERF’s pension expense. In addition, the City recognized an
additional $10,384 as pension expense (and grant revenue) for its proportionate share of the
State of Minnesota’s contribution of $16 million to the GERF.
At December 31, 2021, the City reported its proportionate share of the GERF’s deferred
outflows of resources and deferred inflows of resources related to pensions from the following
sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience $26,433 $128,989
Changes in actuarial assumptions 2,573,550 93,853
Net collective difference between projected
and actual investment earnings - 3,655,854
Changes in proportion 243,862 69,091
Contributions paid to PERA
subsequent to the measurement date 272,033 -
Total $3,115,878 $3,947,787
The $272,033 reported as deferred outflows of resources related to pensions resulting from
City contributions subsequent to the measurement date will be recognized as a reduction of
the net pension liability in the year ended December 31, 2022. Other amounts reported as
deferred outflows and inflows of resources related to pensions will be recognized in pension
expense as follows:
Year Ended Pension
December 31, Expense
2022 ($162,607)
2023 30,389
2024 23,906
2025 (995,630)
Thereafter -
($1,103,942)
81
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
2. PEPFF Pension Costs
At December 31, 2021, the City reported a liability of $3,006,527 for its proportionate share of
the PEPFF’s net pension liability. The net pension liability was measured as of June 30,
2021 and the total pension liability used to calculate the net pension liability was determined
by an actuarial valuation as of that date. The City’s proportionate share of the net pension
liability was based on the City’s contributions received by PERA during the measurement
period for employer payroll paid dates from July 1, 2020 through June 30, 2021, relative to
the total employer contributions received from all of PERA’s participating employers. The
City’s proportionate share was 0.3895% at the end of the measurement period and 0.4043%
for the beginning of the period.
The State of Minnesota also contributed $18 million to PEPFF during the plan fiscal year
ended June 30, 2021. The contribution consisted of $9 million in direct state aid that meets
the definition of a special funding situation and $9 million in supplemental state aid that does
not meet the definition of a special funding situation. The direct state aid was paid on
October 1, 2020. Thereafter, by October 1 of each year, the state will pay $9 million to the
PEPFF until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in
supplemental state aid will continue until the fund is 90% funded, or until the State Patrol Plan
(administered by the Minnesota State Retirement System) is 90% funded, whichever occurs
later. Strong asset returns for the fiscal year ended 2021 will accelerate the phasing out of
these state contributions, although we do not anticipate them to be phased out during the
fiscal year ending 2022.
The State of Minnesota is included as a non-employer contributing entity in the PEPFF
Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current
Reporting Period Only (pension allocation schedules) for the $9 million in direct state aid.
PEPFF employers need to recognize their proportionate share of the State of Minnesota’s
pension expense (and grant revenue) under GASB 68 special funding situation accounting
and financial reporting requirements. For the year ended December 31, 2021, the City
recognized pension expense of ($358,070) for its proportionate share of the Police and Fire
Plan’s pension expense. The City recognized an additional $36,529 as pension expense
(and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $9
million to the PEPFF.
The State of Minnesota is not included as a non-employer contributing entity in the Police and
Fire Pension Plan pension allocation schedules for the $9 million in supplemental state aid.
The City also recognized $36,529 for the year ended December 31, 2021 as revenue and an
offsetting reduction of net pension liability for its proportionate share of the State of
Minnesota’s on-behalf contributions to the Police and Fire Fund.
82
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
At December 31, 2021, the City reported its proportionate share of the PEPFF’s deferred
outflows of resources and deferred inflows of resources related to pensions from the following
sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience $574,397 $ -
Changes in actuarial assumptions 4,418,808 1,534,424
Net collective difference between projected
and actual investment earnings - 5,736,680
Changes in proportion 196,335 338,150
Contributions paid to PERA
subsequent to the measurement date 420,597
Total $5,610,137 $7,609,254
The $420,597 reported as deferred outflows of resources related to pensions resulting from
City contributions subsequent to the measurement date will be recognized as a reduction of
the net pension liability in the year ended December 31, 2022. Other amounts reported as
deferred outflows and inflows of resources related to pensions will be recognized in pension
expense as outflows:
Year Ended Pension
December 31, Expense
2022 ($1,940,422)
2023 (341,279)
2024 (439,703)
2025 (638,905)
2026 940,595
Thereafter -
($2,419,714)
The net pension liability will be liquidated by the general, water, sewer, storm water and liquor
funds.
E. Actuarial Assumptions
The total pension liability in the June 30, 2021 actuarial valuation was determined using an
individual entry-age normal actuarial cost method and the following actuarial assumptions:
Inflation 2.25 percent per year
Investment Rate of Return 6.50 percent
The long-term investment rate of return is based on a review of inflation and investment return
assumptions from a number of national investment consulting firms. The review provided a range
of investment return rates deemed to be reasonable by the actuary. An investment return of
6.50% was deemed to be within that range of reasonableness for financial reporting purposes.
83
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Salary growth assumptions in the GERF range in annual increments from 10.25% after one year
of service to 3.0% after 29 years of service and 6.0% per year thereafter. In the PEPFF, salary
growth assumptions range from 11.75% after one year of service to 3.0% after 24 years of
service.
Mortality rates for GERF were based on the Pub-2010 General Employee Mortality Table.
Mortality rates for PEPFF were based on the Pub-2010 Public Safety Employee Mortality tables.
The tables are adjusted slightly to fit PERA’s experience. Cost of living benefit increases after
retirement are assumed to be 1.25% per year for GERF and 1.0% per year for PEPFF.
Actuarial assumptions for GERF are reviewed every four years. The most recent four-year
experience study for GERF was completed in 2019. The assumption changes were adopted by
the Board and become effective with the July 1, 2020 actuarial valuation. The most recent four-
year experience study for PEPFF was completed in 2020 and adopted by the Board and became
effective with the July 1, 2021 actuarial valuation.
The following changes in actuarial assumptions and plan provisions occurred in 2021:
General Employees Fund
Changes in Actuarial Assumptions:
The investment return and single discount rates were changed from 7.50% to 6.50% for
financial reporting purposes.
The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
Police and Fire Fund
Changes in Actuarial Assumptions:
The investment return and single discount rates were changed from 7.50% to 6.50% for
financial reporting purposes.
The inflation assumption was changed from 2.50% to 2.25%.
The payroll growth assumption was changed from 3.25% to 3.00%.
The base mortality tables for healthy annuitants, disabled annuitants and employees were
changed from RP-2014 tables to Pub-2010 Public Safety Mortality tables. The mortality
improvement scale was changed from MP-2019 to MN-2020.
Assumed salary increase and retirement rates were modified as recommended in the July 14,
2020 experience study. The changes result in a decrease in gross salary increase rates,
slightly more unreduced retirements and fewer assumed early retirements.
Assumed rates of withdrawal were changed from select and ultimate rates to service-based
rates. The changes result in more assumed terminations.
Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49.
Overall, proposed rates result in more projected disabilities.
Assumed percent married for active female members was changed from 60% to 70%.
84
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
The State Board of Investment, which manages the investments of PERA, prepares an analysis
of the reasonableness on a regular basis of the long-term expected rate of return using a
building-block method in which best-estimate ranges of expected future rates of return are
developed for each major asset class. These ranges are combined to produce an expected long-
term rate of return by weighting the expected future rates of return by the target asset allocation
percentages. The target allocation and best estimates of geometric real rates of return for each
major asset class are summarized in the following table:
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Domestic equity 33.5% 5.10%
International equity 16.5% 5.30%
Fixed income 25.0% 0.75%
Private markets 25.0% 5.90%
Total 100%
F. Discount Rate
The discount rate used to measure the total pension liability in 2021 was 6.5%. The projection of
cash flows used to determine the discount rate assumed that contributions from plan members
and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the
fiduciary net position of the GERF and the PEPFF was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
G. Pension Liability Sensitivity
The following presents the City’s proportionate share of the net pension liability, calculated using
the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate
share of the net pension liability would be if it were calculated using a discount rate one
percentage point lower or one percentage point higher than the current discount rate:
1% Decrease in 1% Increase in
Discount Rate (5.5%) Discount Rate (6.5%) Discount Rate (7.5%)
City's Proportionate share of the
GERF net pension liability $8,596,310 $4,214,932 $619,744
City's Proportionate share of the
PEPFF net pension liability $9,545,216 $3,006,527 ($2,353,577)
The net pension liability is generally liquidated by the Employee Benefits Internal Service Fund.
H. Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in a separately-
issued PERA financial report that includes financial statements and required supplementary
information. That report may be obtained at www.mnpera.org.
85
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
I. Pension Expense
Pension expense recognized by the City for the year ended December 31, 2021 is as follows
GERF $25,353
PEPFF (358,070)
Total ($332,717)
8. Defined Contribution Plan
Five Council members of the City of Fridley are covered by the Public Employees Defined
Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by
PERA. 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 earnings, 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% 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% of
employer contributions and twenty-five hundredths of 1% (.0025) of the assets in each member's
account annually.
Total contributions made by the City during fiscal year 2021 were:
Employer Required
Employee (Pension Expense) Employee Employer Rate
$2,138 $2,138 5%5%5%
Contribution Amount
Percentage of Covered Payroll
9. 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 the 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.
86
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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 $184,950 and $176,560 in State Aid to the Association for December
31, 2021 and 2020, respectively. This transaction is recorded as revenue and expenditures in the
City’s financial statements.
During 2021 and as of December 31, 2021, the Association held no securities issued by the City
or other related parties.
10. Post-Employment Benefits Other Than Pensions (OPEB)
A. Plan Description
In addition to providing the pension benefits described in Note 7, 8 and 9, the City provides post
employment health care benefits, as defined in paragraph B, through its group health insurance
plan (the plan). The plan is a single-employer defined benefit OPEB plan 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. No assets are
accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.
B. Benefits Provided
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.
The City provides health coverage for peace officers or firefighters disabled or killed in the line of
duty in accordance with Minnesota Statute 299A.465. The amount of coverage provided is equal
to the employer portion of health insurance premiums that would have otherwise been paid if the
officer or firefighter was an active employee. During 2021, benefits were provided to three
officers disabled in the line of duty.
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, Medicare
becomes the primary insurer.
87
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
C. Participants
As of the January 1, 2021 actuarial valuation date, participants of the plan consisted of:
Active employees 146
Inactive employees or beneficiaries
currently receiving benefits 4
Total 150
D. Total OPEB Liability and Changes in Total OPEB Liability
The City’s total OPEB liability of $1,509,036 was measured as of January 1, 2021 and was
determined by an actuarial valuation as of January 1, 2021. Changes in the total OPEB liability
during 2021 were:
Balance - beginning of year $1,598,105
Changes for the year:
Service cost 40,554
Interest cost 46,853
Changes of benefit terms -
Differences between expected and actual experience (272,762)
Changes in assumptions 142,709
Benefit payments (46,423)
Net changes (89,069)
Balance - end of year $1,509,036
There were no plan changes since the measurement date of January 1, 2021.
E. Actuarial Assumptions and Other Inputs
The total OPEB liability in the January 1, 2021 actuarial valuation was determined using the
following actuarial assumptions and other inputs, applied to all periods included in the
measurement, unless otherwise specified:
Inflation 2.00%
Salary increases 3.00%
Discount rate 2.00%
20-year muncipal bond yield 2.00%
Healthcare cost trend rates
6.5% as of January 1, 2021 grading to 5.00% over
6 years and then 4.00% over the next 48 years
Retirees' share of benefit-related costs 100%
88
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Mortality rates were based on the Pub-2010 Public Retirement Plan Headcount – weighted
mortality tables (General, Safety) with MP-2020 Generational Improvement Scale.
The actuarial assumptions (retirement withdrawal) used in the January 1, 2021 valuation are
similar to those used to value pension liabilities for Minnesota public employees. The state
pension plans base their assumptions on periodic experience studies.
There were no changes in assumptions and other inputs since the prior measurements date are
as follows:
Changes since prior valuation:
The health care trend rates and salary increases were updated.
The mortality tables were updated from the RP-2014 White Collar Mortality Tables with MP-
2018 Generational Improvement Scale (with Blue Collar adjustment for Police and Fire
Personnel) to Pub-2010 Public Retirement Plan Headcount – weighted mortality tables
(General, Safety) with MP-2020 Generational Improvement Scale.
The retirement and withdrawal tables for non-safety personnel were updated.
The discount rate was changed from 2.90% to 2.00%.
F. Sensitivity of the Total OPEB Liability to Changes in The Discount Rate
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB
liability would be if it were calculated using a discount rate that is 1% lower (1.00%) or 1% higher
(3.00%) than the current discount rate:
1% Decrease Discount Rate 1% Increase
(1.00%) (2.00%) (3.00%)
Total OPEB liability $1,696,173 $1,509,036 $1,347,566
G. Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB
liability would be if it were calculated using healthcare cost trend rates that are 1% lower (5.50%
decreasing to 4.00% over 6 years) or 1% higher (7.50% decreasing to 6.00% over 6 years) than
the current healthcare cost trend rates:
Healthcare Cost
1% Decrease Trend Rates 1% Increase
(5.50% decreasing to 4.00%) (6.50% decreasing to 5.00%) (7.50% decreasing to 6.00%)
Total OPEB liability $1,335,876 $1,509,036 $1,710,674
89
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
H. OPEB Expense and Deferred Outflows and Inflows of Resources Related To OPEB
For the year ended December 31, 2021, the City recognized $125,350 of OPEB expense. At
December 31, 2021, the City reported deferred outflows and inflows of resources related to
OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and actual experience $215,763 $238,666
Changes in actuarial assumptions 236,913 38,142
Contributions subsequent to
the measurement date 39,291 -
Total $491,967 $276,808
$39,291 reported as deferred outflows of resources related to OPEB resulting from City
contributions after the measurement date will be recognized as a reduction of the OPEB liability
in the year ended December 31, 2022. Amounts reported as deferred outflows and inflows of
resources related to OPEB will be recognized in OPEB expense as follows:
Year Ended OPEB
December 31, Expense
2022 $37,941
2023 37,941
2024 37,941
2025 37,941
2026 37,942
Thereafter (13,838)
11. 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:
Interfund Interfund
Receivables Payables
Due From/Due To:
Major Funds:
General Fund $16,872 $ -
Community Investment (1)4,082,519
Water (1) - 3,717,519
Sewer - 210,000
Storm Water - 155,000
Nonmajor Governmental Funds:
Police Activity - 16,872
Total $4,099,391 $4,099,391
(1) Interfund loan from Community Investment Fund to
Water Fund to support capital costs related
to the Locke Park Water Treatment Improvement Project
Balance was $2,962,519 at December 31, 2021
90
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Interfund receivables and payables of the HRA component unit at December 31, 2021 are as
follows:
Interfund Interfund
Receivables Payables
Due From/Due To:
General Fund $10,622,922 $ -
Capital Projects Funds:
Lake Pointe - 215,303
Gateway East - 211,653
Gateway West - 240,109
Gateway Northeast - 2,901,765
BAE Hazardous Sub District - 2,668,461
Northern Stacks VIII - 12,368
Holly Center - 25,247
Locke Point Park - 4,348,016
Total $10,622,922 $10,622,922
The above balances are not expected to be eliminated within one year of December 31, 2021.
Interfund Transfers:
Transfer In Transfer Out
Governmental Funds:
Major Funds:
General Fund (1) (2) $189,600 $4,321,388
Street Improvements (2) - 101,100
Community Investment (3)4,482,190 260,802
Nonmajor Funds (4)350,000 -
Total governmental funds 5,021,790 4,683,290
Proprietary Funds:
Liquor - 338,500
Total proprietary funds - 338,500
Total $5,021,790 $5,021,790
(1) Transfer of $4,321,388 to Community Investment fund per City policy.
(2) Transfer of $101,100 to finance General Fund
(3) Transfer of $100,000 from Community Investment to finance park improvements
(4) Transfer of from Liquor fund to Capital Equipment ($175,000) and Park Improvement ($175,000)
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.
91
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
12. Fund Balance
A. CLASSIFICATIONS
At December 31, 2021, a summary of the governmental fund balance classifications are as
follows:
Debt Street Community CARES/ Other Total Component
General Fund Service Improvements Investment ARPA Governmental City Unit
Nonspendable:
Inventory $105,578 $ - $ - $ - $ - $ - $105,578 $ -
Mortgage loan receivable - - - - - - - 1,806,444
Total nonspendable 105,578 - - - - - 105,578 1,806,444
Restricted for:
Donations 20,849 - - - - 2,218 23,067 -
Debt service - 3,587,889 - - - - 3,587,889 -
Tax increment - - - - - 5,233 5,233 3,894,177
Police forfeitures - - - - - 72,693 72,693 -
Cable television equipment - - - - - 52,095 52,095 -
Unspent bond proceeds - - - - - - - -
Total restricted 20,849 3,587,889 - - - 132,239 3,740,977 3,894,177
Committed to:
Cable television programming - - - - - 1,138,931 1,138,931 -
Recycling programs - - - - - 87,611 87,611 -
Nature Center activities - - - - - 184,667 184,667 -
Community investment - - - 13,339,393 - - 13,339,393 -
Police activity - - - - 14,790 27,376 42,166 -
Capital equipment - - - - - 1,351,720 1,351,720 -
Emergency reserves - - - - - 36,466 36,466 -
Housing loan program - - - - - - - 1,190,093
Total committed - - - 13,339,393 14,790 2,826,771 16,180,954 1,190,093
Assigned to:
Capital improvements - - 2,656,006 - - 4,155,847 6,811,853 -
Total assigned - - 2,656,006 - - 4,155,847 6,811,853 -
Unassigned 10,598,912 (52,012) - - - - 10,546,900 9,040,477
Total $10,725,339 $3,535,877 $2,656,006 $13,339,393 $14,790 $7,114,857 $37,386,262 $15,931,191
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, 2021, the unassigned fund balance of the General Fund was $10,598,112,
compared to its targeted unassigned fund balance of between $6,871,865 and $9,816,950.
92
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
13. Tax Increment Districts
The HRA is the administering authority for the following Tax Increment Districts:
Fiscal Retained
Year Disparity By
Established District District Name Current Original Captured Adjustments Authority
1985 6 Lake Pointe $872,226 $326,940 $545,286 $ - $545,286
1992 12 McGlynn's - - - - -
1995 13 Satellite Lane Apartments 46,455 1,403 45,052 - 45,052
2000 17 Gateway East 51,329 3,291 48,038 - 48,038
2007 18 Gateway West 46,798 4,430 42,368 - 42,368
2007 19 Main Street 226,008 45,628 180,380 - 180,380
2013 20 TIF 20 HSS 20A 2,347,304 12 2,347,292 - 2,347,292
2009 21 Gateway Northeast 473,848 28,419 445,429 - 445,429
2013 22 Northstar Transit Station 1,080,702 511,239 569,463 - 569,463
2017 23 Locke Point Park 106,735 42,487 64,248 - 64,248
2018 24 Northern Stacks VIII 156,578 115,566 41,012 - 41,012
1995 HR1/S5 Housing Replacement - - - - -
1995 HR1/T7 Housing Replacement 2,765 384 2,381 - 2,381
2017 HR1/V5 Housing Replacement 2,342 208 2,134 - 2,134
1995 HR1/V6 Housing Replacement 5,364 316 5,048 - 5,048
1995 HR1/V9 Housing Replacement 2,526 286 2,240 - 2,240
1995 HR1/W1 Housing Replacement 2,320 357 1,963 - 1,963
1995 HR1/W2 Housing Replacement 2,297 286 2,011 - 2,011
1995 HR1/W6 Housing Replacement 7,858 516 7,342 - 7,342
1995 HR1/W7 Housing Replacement 2,865 170 2,695 - 2,695
1995 HR1/X8 Housing Replacement 5,697 637 5,060 - 5,060
2017 HR1/X9 Housing Replacement 3,087 164 2,923 - 2,923
1995 HR1/Y1 Housing Replacement 2,710 201 2,509 - 2,509
1995 HR1/Y2 Housing Replacement 2,647 181 2,466 - 2,466
2017 HR1/Y5 Housing Replacement 2,936 328 2,608 - 2,608
2015 HR1/Y4 Housing Replacement 2,897 251 2,646 - 2,646
2020 HR1/AA5 Housing Replacement 3,088 295 2,793 - 2,793
2020 HR1/AA7 Housing Replacement 3,119 299 2,820 - 2,820
2021 HR1/BB3 Housing Replacement 742 547 195 - 195
2021 HR1/BB4 Housing Replacement 437 350 87 87
Totals $5,463,680 $1,085,191 $4,378,489 $ - $4,378,489
Tax Capacity Values
14. Commitments and Contingencies
A. Risk Managements
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 $25,000 deductible.
93
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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.
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, 2021, the Self Insurance Fund has accumulated equity in the amount of
$1,025,917 to cover future claims and losses.
B. Litigation
The City attorney and management 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 and management, 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, 2021.
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.
94
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
E. Tax Abatements – Pay-As-You-Go Tax Increment
The City provides tax abatements pursuant to Minnesota Statutes 469.174 to 469.1794 (Tax
Increment Financing) through a pay-as-you-go note program. Tax increment financing (TIF) can
be used to encourage private development, redevelopment, renovation and renewal, growth in
low-to-moderate-income housing, and economic development within the City. TIF captures the
increase in tax capacity and property taxes from development or redevelopment to provide
funding for the related project.
The City has four tax increment pay-as-you-go agreements. The agreements are not a general
obligation of the City and are payable solely from available tax increment. Accordingly, these
agreements are not reflected in the financial statements of the City. Details of the pay-as-you-go
notes are as follows:
TIF District #6, Lake Pointe (Medtronic):
Issued in 2001 in the principal sum of $20,000,000 with an interest rate of 6.75% per annum.
Principal and interest shall be paid on August 1, 2001 and each February 1 and August 1
thereafter to and including March 1, 2026. Payments are payable solely from available tax
increment derived from the developed/redeveloped property and paid to the City. The pay-as-
you-go note provides for payment to the developer equal to 90% of all tax increment received in
the prior six months. The payment reimburses the developer for public improvements. The
City shall have no obligation to pay any unpaid balance of principal or accrued interest that may
remain after the final payment on March 1, 2026. The current year abatement (TIF note
payments) amounted to $541,326. At December 31, 2021, the principal amount outstanding on
the note was $20,000,000.
TIF District #19, Main Street:
Issued in 2008 in the principal sum of $1,500,000 with an interest rate of 7.00% per annum.
Principal and interest shall be paid on August 1, 2009 and each February 1 and August 1
thereafter to and including February 1, 2025. Payments are payable solely from available tax
increment derived from the developed/redeveloped property and paid to the City. The pay-as-
you-go note provides for payment to the developer equal to 90% of all tax increment received in
the prior six months. The payment reimburses the developer for certain public redevelopment
costs. The current year abatement (TIF note payments) amounted to $135,920 At December
31, 2021, the principal amount outstanding on the note was $1,500,000.
TIF District #20, BAE Northern Stacks:
Originally issued in 2016, and reissued in 2018 in the principal sum of $15,775,000 with an
interest rate of 4.69% per annum. Principal and interest shall be paid on August 1, 20 and
each February 1 and August 1 thereafter to and including February 1, 2042. Payments are
payable solely from available tax increment derived from the developed/redeveloped property
and paid to the City. The pay-as-you-go note provides for payment to the developer equal to
90% of all tax increment received in the prior six months. The payment reimburses the
developer for street, utilities, right-of-way, land acquisition, and other public improvements. The
City shall have no obligation to pay any unpaid balance of principal or accrued interest that may
remain after the final payment on February 1, 2042. The current year abatement (TIF note
payments) amounted to $1,603,873. At December 31, 2021, the principal amount outstanding
on the note was $15,775,000. The outstanding balance was paid in 2020.
95
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
TIF District #22, Northstar – Fridley Senior Apartments
Issued in 2021 in the principal sum of $3,204,650 with an interest rate of 5.00% per annum.
Principal and interest shall be paid on August 1, 2022, and each February 1 and August 1
thereafter to and including February 1, 2043. Payments are solely from available tax increment
derived from developed/redeveloped property and paid to the City. The pay-as-you-go note
provides for payment to the developer equal to 90% of all increments received in the prior six
months. The City shall have no obligation to pay any unpaid balance of principal or occurred
interest that may remain after the final payment on February 1, 2043. There were no current
year TIF note payments. At December 21, 2021, the balance outstanding was $3,241,147.
TIF District #22, Fridley Market Apartments
Issued in 2021 in the principal sum of $2,845,250 with an interest rate of 5.00% per annum.
Principal and interest shall be paid on August 1, 2022, and each February 1 and August 1
thereafter to and including February 1, 2043. Payments are solely from available tax increment
derived from developed/redeveloped property and paid to the City. The pay-as-you-go note
provides for payment to the developer equal to 90% of all increments received in the prior six
months. The City shall have no obligation to pay any unpaid balance of principal or occurred
interest that may remain after the final payment on February 1, 2043. There were no current
year TIF note payments. At December 21, 2021, the balance outstanding was $2,902,155.
TIF District #24, Northern Stacks Phase VIII:
Issued in 2018 in the principal sum of $660,000 with an interest rate of 5.75% per annum.
Principal and interest shall be paid on August 1, 2020 and each February 1 and August 1
thereafter to and including February 1, 2042. Payments are payable solely from available tax
increment derived from the developed/redeveloped property and paid to the City. The pay-as-
you-go note provides for payment to the developer equal to 90% of all tax increment received in
the prior six months. The payment reimburses the developer for street, utilities, right-of-way,
land acquisition, and other public improvements. The City shall have no obligation to pay any
unpaid balance of principal or accrued interest that may remain after the final payment on
February 1, 2042. Current year abatement (TIF note payments) amounted to $40,714. At
December 31, 2021, the principal amount outstanding on the note was $649,970.
15. Leases
A. Lease Expense
The City leases space for one of its liquor stores. Total costs for this lease was $231,072 for the
year ended December 31, 2021. The future minimum lease payments for this lease are as
follows:
Year Ending
December 31,Amount
2022 145,841$
2023 121,534
96
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
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, 2021, totaled $391,362. Terms of each
lease are as follows:
Next
(passive)
Annual Lease Renewal Renewal Term Final Lease
Lessee / Location Adjustment Factor*Date Duration Date
Clearwire - Commons Tower #1 Greater of 4% or CPI-U 2/22/2025 5 Years 2/22/2035
AT&T - Marion Hills Greater of 5% or CPI-U 7/1/2025 5 Years 7/1/2025
T-Mobile - Commons Tower #1 Greater of 2% or CPI-U up to 5% 3/27/2025 5 Years 3/28/2030
Verizon - Commons Tower #1 3% 6/6/2023 5 Years 6/6/2038
Clearwire - Marion Hills Greater of 4% or CPI-U 2/22/2025 5 Years 2/22/2035
Clearwire - TH65 Tower #2 Greater of 4% or CPI-U 2/22/2025 5 Years 2/22/2035
T-Mobile - Marion Hills Greater of 2% or CPI-U up to 5% 9/30/2025 5 Years 9/30/2021
Sprint - TH65 Tower #2 Greater of 5% or CPI-U 10/1/2025 5 Years 10/1/2025
Crown Castle - Well #13 Greater of 5% or CPI-U 11/6/2023 5 Years 11/6/2023
AT&T - Public Works Garage Greater of 5% or CPI-U 11/30/2023 5 Years 11/30/2028
*Amounts for future lease receipts are unavailable because they are based on the
Consumer Price Index.
16. 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, 2021, there are four series outstanding issued after July 1, 1995 with an aggregate
principal amount payable of $44,586,608. There were twenty-two series issued prior to July 1, 1995. The
aggregate principal amount payable for the twenty-two series could not be determined; however, their
original issue amounts totaled $65.2 million.
97
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
17. Deficit Fund Balances
At December 31, 2021, individual funds with a deficit fund balance are as follows:
Primary government:
Internal Service Fund:
Employee Benefits (9,775,646)$
Component unit:
Gateway NorthEast (2,866,873)$
BAE Hazardous Sub District (2,660,609)
Locke Point Park (4,333,530)
Gateway East (156,962)
Lake Pointe (209,941)
Gateway West (220,962)
Main Street (4,171)
Northern Stacks VIII (32,725)
Holly Center (25,247)
18. 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, 2021 is $3,191,043. 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.
19. Recently Issued Accounting Standards
The Governmental Accounting Standards Board (GASB) recently approved the following statements
which were not implemented for these financial statements:
Statement No. 87 Leases. The provisions of this Statement are effective for reporting periods
beginning after June 15, 2021.
Statement No. 91 Conduit Debt Obligations. The provisions of this Statement are effective for
reporting periods beginning after December 15, 2021.
Statement No. 92 Omnibus 2020. The provisions of this Statement are effective for reporting
periods beginning after June 15, 2021.
Statement No. 93 Replacement of Interbank Offered Rates. The provisions of this Statement
contain multiple effective dates, the first being for reporting periods beginning after June 15,
2020.
Statement No. 94 Public-Private and Public-Public Partnerships and Availability Payment
Arrangements. The provisions of this Statement are effective for reporting periods beginning after
June 15, 2022.
98
THE CITY OF FRIDLEY, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2021
Statement No. 96 Subscription – Based Information Technology Arrangements. The provisions
of this Statement are effective for reporting periods beginning after June 15, 2022.
The effect these standards may have on future financial statements is not determinable at this time, but it
is expected that Statement No. 87 may have a material impact.
20. Subsequent Events and Uncertainties
Subsequent events have been evaluated for recognition or disclosure through May 12, 2022
the date the financial statements were available to be issued.
99
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100
REQUIRED SUPPLEMENTARY INFORMATION
101
Exhibit B-1
Page 1 of 4
Variance with
Final Budget - 2020
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Taxes and special assessments:
Current ad valorem taxes $12,931,600 $12,931,600 $13,180,742 $249,142 $12,396,841
Delinquent ad valorem taxes-net of abatements 87,400 87,400 79,963 (7,437) 77,318
Penalties and interest 12,700 12,700 41,157 28,457 2,726
Special assessments 30,200 30,200 167,759 137,559 33,263
Total taxes and special assessments 13,061,900 13,061,900 13,469,621 407,721 12,510,148
Licenses and permits:
Licenses:
Rental 165,000 165,000 168,574 3,574 172,044
Business 82,000 82,000 91,815 9,815 64,208
All other 31,700 31,700 35,327 3,627 38,535
Permits 755,400 755,400 970,056 214,656 1,027,184
Total licenses and permits 1,034,100 1,034,100 1,265,772 231,672 1,301,971
Intergovernmental revenue:
Federal grants 160,000 160,000 107,332 (52,668) 183,318
State maintenance aid 348,500 348,500 424,755 76,255 455,586
Local grants 750,700 750,700 778,200 27,500 795,186
Other state grants 4,900 4,900 94,886 89,986 7,858
Police and fire pension 541,000 541,000 614,578 73,578 606,875
Total intergovernmental revenue 1,805,100 1,805,100 2,019,751 214,651 2,048,823
Charges for services:
General government 1,162,600 1,162,600 1,190,035 27,435 1,136,776
Public safety 406,300 406,300 487,796 81,496 412,282
Public works 372,000 372,000 434,482 62,482 415,207
Community development 64,000 64,000 45,322 (18,678) 58,998
Recreation 105,800 105,800 110,047 4,247 14,688
Total charges for services 2,110,700 2,110,700 2,267,682 156,982 2,037,951
Fines and forfeits 160,700 160,700 127,549 (33,151) 116,184
Investment income:
Interest and dividends 100,200 100,200 144,044 43,844 214,873
Net change in the fair value of investments - - (193,729) (193,729) 85,211
Total investment income 100,200 100,200 (49,685) (149,885) 300,084
Miscellaneous revenue:
Insurance and other reimbursements 38,600 38,600 90,422 51,822 58,659
Gambling tax 39,390 39,390 78,489 39,099 30,645
Donations 12,900 12,900 11,684 (1,216)9,862
Miscellaneous 14,000 14,000 65,768 51,768 12,910
Total miscellaneous revenue 104,890 104,890 246,363 141,473 112,076
Total revenues 18,377,590 18,377,590 19,347,053 969,463 18,427,237
2021
Budgeted Amounts
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2021
With Comparative Actual Amounts For The Year Ended December 31, 2020
See accompanying notes to required supplementary information
102
Exhibit B-1
Page 2 of 4
Variance with
Final Budget - 2020
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Expenditures:
General government:
City management:
Mayor and council:
Current:
Personal services $95,500 $95,500 $91,092 $4,408 $92,240
Supplies and other charges 74,170 74,170 78,401 (4,231) 49,985
Total mayor and council 169,670 169,670 169,493 177 142,225
City manager:
Current:
Personal services 332,400 332,400 347,586 (15,186) 315,153
Supplies and other charges 21,990 21,990 21,577 413 27,696
Total city manager 354,390 354,390 369,163 (14,773) 342,849
Employee resources:
Current:
Personal services 370,700 370,700 352,827 17,873 361,914
Supplies and other charges 56,560 56,560 36,968 19,592 16,271
Total employee resources 427,260 427,260 389,795 37,465 378,185
Legal:
Current:
Supplies and other charges 398,250 398,250 384,926 13,324 374,672
Elections:
Current:
Personal services - - - - 67,715
Supplies and other charges 12,140 12,140 6,261 5,879 11,732
Total elections 12,140 12,140 6,261 5,879 79,447
Communications and engagement
Current:
Personal services 102,300 102,300 120,321 ($18,021) 98,840
Supplies and other charges 46,730 46,730 51,088 (4,358) 36,519
Total communications and engagement 149,030 149,030 171,409 (22,379) 135,359
City clerk/records:
Personal services 105,300 105,300 118,030 (12,730) 101,649
Supplies and other charges 7,250 7,250 5,077 2,173 11,207
Total city clerk/records 112,550 112,550 123,107 (10,557) 112,856
Total city management 1,623,290 1,623,290 1,614,154 9,136 1,565,593
Finance:
Accounting:
Current:
Personal services 597,200 597,200 570,927 26,273 614,709
Supplies and other charges 92,840 92,840 103,229 (10,389) 85,959
Total accounting 690,040 690,040 674,156 15,884 700,668
Assessing:
Current:
Personal services 268,000 268,000 256,127 11,873 234,093
Supplies and other charges 15,680 15,680 16,265 (585) 5,737
Total assessing 283,680 283,680 272,392 11,288 239,830
ITS:
Current:
Personal services 354,000 354,000 330,870 23,130 341,714
Supplies and other charges 270,580 270,580 250,278 20,302 220,432
Total ITS 624,580 624,580 581,148 43,432 562,146
Total finance 1,598,300 1,598,300 1,527,696 70,604 1,502,644
Emergency reserves:
Current:
Supplies and other charges 88,360 88,360 13,882 74,478 392,640
Nondepartmental:
Current:
Personal services 56,490 56,490 - 56,490 -
Supplies and other charges 21,970 21,970 18,029 3,941 32,600
Total nondepartmental 78,460 78,460 18,029 60,431 32,600
For The Year Ended December 31, 2021
With Comparative Actual Amounts For The Year Ended December 31, 2020
2021
Budgeted Amounts
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
See accompanying notes to required supplementary information
103
Exhibit B-1
Page 3 of 4
Variance with
Final Budget - 2020
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Expenditures: (continued)
General government: (continued)
Facilities management:
Current:
Personal services $268,500 $268,500 $275,676 ($7,176) $222,713
Supplies and other charges 321,350 321,350 366,360 (45,010) 349,906
Total facilities management 589,850 589,850 642,036 (52,186) 572,619
Total general government 3,978,260 3,978,260 3,815,797 162,463 4,066,096
Public safety:
Police:
Police protection:
Current:
Personal services 6,691,200 6,691,200 6,608,252 82,948 6,327,635
Supplies and other charges 722,980 722,980 734,251 (11,271) 580,511
Total police protection 7,414,180 7,414,180 7,342,503 71,677 6,908,146
Emergency management:
Current:
Supplies and other charges 16,320 16,320 11,738 4,582 10,723
Total police 7,430,500 7,430,500 7,354,241 76,259 6,918,869
Fire:
Fire protection:
Current:
Personal services 1,121,500 1,121,500 1,199,143 (77,643) 1,044,021
Supplies and other charges 420,010 420,010 452,150 (32,140) 413,235
Total fire protection 1,541,510 1,541,510 1,651,293 (109,783) 1,457,256
Rental inspections:
Current:
Personal services 220,000 220,000 220,594 (594) 160,564
Supplies and other charges 9,600 9,600 5,807 3,793 3,978
Total rental inspections 229,600 229,600 226,401 3,199 164,542
Total public safety 9,201,610 9,201,610 9,231,935 (30,325) 8,540,667
Public works:
Engineering:
Current:
Personal services 257,100 257,100 257,397 (297) 283,299
Supplies and other charges 108,700 108,700 142,524 (33,824) 120,258
Total engineering 365,800 365,800 399,921 (34,121) 403,557
Lighting:
Current:
Personal services 17,300 17,300 16,733 567 27,444
Supplies and other charges 211,500 211,500 185,820 25,680 193,241
Total lighting 228,800 228,800 202,553 26,247 220,685
With Comparative Actual Amounts For The Year Ended December 31, 2020
2021
Budgeted Amounts
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2021
CITY OF FRIDLEY, MINNESOTA
See accompanying notes to required supplementary information
104
Exhibit B-1
Page 4 of 4
Variance with
Final Budget - 2020
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Expenditures: (continued)
Park maintenance:
Current:
Personal services 718,700 718,700 701,436 17,264 649,114
Supplies and other charges 236,680 236,680 228,848 7,832 185,006
Total park maintenance 955,380 955,380 930,284 25,096 834,120
Street:
Current:
Personal services 860,000 860,000 856,460 3,540 840,534
Supplies and other charges 563,490 563,490 535,793 27,697 299,585
Capital outlay - - - -
Total street 1,423,490 1,423,490 1,392,253 31,237 1,140,119
Fleet services:
Current:
Personal services 371,400 371,400 363,138 8,262 390,569
Supplies and other charges 44,250 44,250 20,018 24,232 32,369
Total garage 415,650 415,650 383,156 32,494 422,938
Forestry
Current:
Supplies and other charges 67,900 67,900 94,551 (26,651) 62,386
Total forestry 67,900 67,900 94,551 (26,651) 62,386
Total public works 3,457,020 3,457,020 3,402,718 54,302 3,083,805
Community development:
Building inspection:
Current:
Personal services $329,200 $329,200 $328,337 $863 $311,549
Supplies and other charges 120,150 120,150 118,577 1,573 91,584
Total building inspection 449,350 449,350 446,914 2,436 403,133
Planning:
Current:
Personal services 525,200 525,200 481,259 43,941 432,745
Supplies and other charges 173,660 173,660 140,282 33,378 200,537
Total planning 698,860 698,860 621,541 77,319 633,282
Total community development 1,148,210 1,148,210 1,068,455 79,755 1,036,415
Community services:
Current:
Personal services 567,200 567,200 543,377 23,823 447,756
Supplies and other charges 211,990 211,990 121,469 90,521 70,134
Total community services 779,190 779,190 664,846 114,344 517,890
Total expenditures 18,564,290 18,564,290 18,183,751 380,539 17,244,873
Excess (deficiency) of revenues over
(under) expenditures (186,700) (186,700) 1,163,302 1,350,002 1,182,364
Other financing sources (uses):
Transfers in 186,700 186,700 189,600 2,900 2,249,000
Transfers out - - (4,321,388) (4,321,388) -
Total other financing sources 186,700 186,700 (4,131,788) (4,318,488) 2,249,000
Net change in fund balance $ - $ - (2,968,486) ($2,968,486) 3,431,364
Fund balance - January 1 13,693,825 10,262,461
Fund balance - December 31 $10,725,339 $13,693,825
2021
Budgeted Amounts
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2021
With Comparative Actual Amounts For The Year Ended December 31, 2020
See accompanying notes to required supplementary information
105
Exhibit B-2
2021 2020 2019 2018
Total OPEB Liabilty:
Service cost 40,554$ 29,976$ 24,817$ 30,073$
Interest cost 46,853 53,743 36,281 14,035
Addition of disabled police offcers - - - 659,344
Changes in benefit terms - - - -
Differences between expected and actual experience (272,762) - 345,222 -
Changes in assumptions 142,709 149,391 (61,029) -
Benefit payments (46,423) (38,283) (32,982) (15,301)
Net change in total OPEB liability (89,069) 194,827 312,309 688,151
Total OPEB liability - beginning 1,598,105 1,403,278 1,090,969 402,818
Total OPEB liability - ending 1,509,036$ 1,598,105$ 1,403,278$ 1,090,969$
Covered-employee payroll $11,498,814 $10,759,599 $10,446,213 $10,037,870
Total OPEB liabilty as a percentage of covered payroll 13.1% 14.9% 13.4% 10.9%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2018 and
is intended to show a ten year trend. Additional years will be added as they become available
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
Last Ten Years
106
Exhibit B-3
City's
State's Proportionate City's
Proportionate Share of the Net Proportionate
City's City's Share (Amount) Pension Liability and Share of the
Proportionate Proportionate of the Net the State's Proportionate Net Pension Plan Fiduciary
Share Share (Amount) Pension Share of the Net Liability as a Net Position as
Measurement Fiscal Year (Percentage) of of the Net Liability Pension Liability Percentage of its a Percentage
Date Ending the Net Pension Pension Associated with Associated with Covered Covered of the Total
June 30 December 31 Liability Liability (a) City (b)City (a+b) Payroll (c) Payroll ((a+b)/c) Pension Liability
2015 2015 0.1004% $5,203,249 $ - $5,203,249 $5,903,611 88.1% 78.2%
2016 2016 0.1018% 8,265,655 107,922 8,373,577 6,281,307 133.3% 68.9%
2017 2017 0.0979% 6,249,871 78,569 6,328,440 6,269,774 100.9% 75.9%
2018 2018 0.0976% 5,414,448 177,601 5,592,049 6,461,494 86.5% 79.5%
2019 2019 0.0919% 5,080,945 157,993 5,238,938 6,505,506 80.5% 80.2%
2020 2020 0.0946% 5,671,702 174,864 5,846,566 6,747,539 86.6% 79.1%
2021 2021 0.0987% 4,214,932 128,697 4,343,629 7,107,615 61.1% 87.0%
* The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY* -
GENERAL EMPLOYEES RETIREMENT FUND
Last Ten Years
See accompanying notes to the required supplementary information.
107
Exhibit B-4
Statutorily Contributions in Contribution Contributions as a
Required Relation to the Deficiency Covered Percentage of
Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered
Ending (a) Contribution (b) (a-b) (c) Payroll (b/c)
December 31, 2015 $466,069 $466,069 $ - $6,214,253 7.5%
December 31, 2016 458,639 458,639 - 6,115,187 7.5%
December 31, 2017 479,410 479,410 - 6,392,134 7.5%
December 31, 2018 480,597 480,597 - 6,407,960 7.5%
December 31, 2019 495,872 495,872 - 6,611,626 7.5%
December 31, 2020 525,081 525,081 - 7,001,082 7.5%
December 31, 2021 541,932 541,932 - 7,225,769 7.5%
* The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is
intended to show a ten year trend. Additional years will be reported as they become available.
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PENSION CONTRIBUTIONS* - GENERAL EMPLOYEES RETIREMENT FUND
Last Ten Years
See accompanying notes to the required supplementary information.
108
Exhibit B-5
Proportionate Share
Proportionate of the Net Pension Plan Fiduciary
Proportion Share (Amount) Liability as a Net Position as
Measurement Fiscal Year (Percentage) of of the Net Percentage of its a Percentage
Date Ending the Net Pension Pension Covered Covered of the Total
June 30 December 31 Liability Liability (a) Payroll (b) Payroll (a/b) Pension Liability
2015 2015 0.4170% $4,738,096 $3,821,428 124.0% 86.6%
2016 2016 0.4050% 16,253,355 3,898,494 416.9% 63.9%
2017 2017 0.3710% 5,008,941 3,812,191 131.4% 85.4%
2018 2018 0.4185% 4,460,779 4,265,364 104.6% 88.8%
2019 2019 0.4147% 4,414,900 4,373,847 100.9% 89.3%
2020 2020 0.4043% 5,329,107 4,560,658 116.8% 87.2%
2021 2021 0.3895% 3,006,527 4,603,126 65.3% 93.7%
* The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY* -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
Last Ten Years
See accompanying notes to the required supplementary information.
109
Exhibit B-6
Statutorily Contributions in Contribution Contributions as a
Required Relation to the Deficiency Covered Percentage of
Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered
Ending (a) Contribution (b) (a-b) (c) Payroll (b/c)
December 31, 2015 $644,283 $644,283 $ - $3,977,056 16.20%
December 31, 2016 606,767 606,767 - 3,745,475 16.20%
December 31, 2017 653,014 653,014 - 4,030,951 16.20%
December 31, 2018 700,029 700,029 - 4,321,166 16.20%
December 31, 2019 751,753 751,753 - 4,435,121 16.95%
December 31, 2020 807,829 807,829 - 4,564,003 17.70%
December 31, 2021 839,373 839,373 - 4,742,218 17.70%
* The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is
intended to show a ten year trend. Additional years will be reported as they become available.
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PENSION CONTRIBUTIONS* - PUBLIC EMPLOYEES POLICE AND FIRE FUND
Last Ten Years
See accompanying notes to the required supplementary information.
110
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2021
A. LEGAL COMPLIANCE – 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.
B. OPEB INFORMATION
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No.
75 to pay related benefits.
Changes since prior valuation:
- No benefit changes.
- The discount rate was changed from 2.90% to 2.00%.
- The mortality tables were updated from the RP-2014 White Collar Mortality Tables with MP-
2018 Generational Improvement Scale to Pub-2010 Public retirement Plans Headcount –
Weighted Mortality Tables (General, Safety) with MP-2020 Generational Improvement Scale.
C. PENSION INFORMATION
PERA – General Employees Retirement Fund
2021 Changes
- The investment return and single discount rates were changed from 7.50% to 6.50% for
financial reporting purposes.
- The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
2020 Changes
- The price inflation assumption was decreased from 2.50% to 2.25%.
- The payroll growth assumption was decreased from 3.25% to 3.00%.
- Assumed salary increase rates were decreased 0.25% and assumed rates of retirement were
changed resulting in more unreduced (normal) retirements and slightly fewer Rule of 90 and
early retirements. Assumed rates of termination and disability were also changed.
- Base mortality tables were changed from RP-2014 tables to Pub-2010 tables, with
adjustments.
- The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
- The spouse age difference was changed from two years older for females to one year older.
- The assumed number of married male new retirees electing the 100% Joint & Survivor option
changed from 35% to 45%. The assumed number of married female new retirees electing
the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of
married new retirees electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions:
- Augmentation for current privatized members was reduced to 2.0% for the period July 1,
2020 through December 31, 2023 and 0.0% after. Augmentation was eliminated for
privatizations occurring after June 30, 2020.
111
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2021
2019 Changes
Changes in Actuarial Assumptions
- The mortality projection scale was changed from MP-2017 to MP-2018
Changes in the Plan Provisions
- The employer supplemental contribution was changed prospectively, decreasing from $31
million to $21 million per year. The State’s special funding contribution was changed
prospectively, requiring $16 million due per year through 2031.
2018 Changes
Changes in Actuarial Assumptions:
- The mortality projection scale was changed from MP-2015 to MP-2017.
- The assumed benefit increase was changed from 1.00 percent per year through 2044 and
2.50 percent per year thereafter to 1.25 percent per year.
2017 Changes
Changes in Actuarial Assumptions:
- The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active
members and 60 percent for vested and non-vested deferred members. The revised CSA
loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred
member liability and 3.0 percent for non-vested deferred member liability.
- The assumed post-retirement benefit increase rate was changed from 1.0 percent per year
for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter.
2016 Changes
Changes in Actuarial Assumptions:
- The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2035 and 2.5% per year thereafter to 1.0% per year for all future years.
- The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
was changed from 7.9% to 7.5%.
- Other assumptions were changed pursuant to the experience study dated June 30, 2015.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25%
to 3.25% for payroll growth and 2.50% for inflation.
PERA – Public Employees Police and Fire Fund
2021 Changes
- The investment return and single discount rates were changed from 7.50% to 6.50% for
financial reporting purposes.
- The inflation assumption was changed from 2.50% to 2.25%.
- The payroll growth assumption was changed from 3.25% to 3.00%.
- The base mortality tables for healthy annuitants, disabled annuitants and employees were
changed from RP-2014 tables to Pub-2010 Public Safety Mortality tables. The mortality
improvement scale was changed from MP-2019 to MN-2020.
112
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2021
- Assumed salary increase and retirement rates were modified as recommended in the July 14,
2020 experience study. The changes result in a decrease in gross salary increase rates,
slightly more unreduced retirements and fewer assumed early retirements.
- Assumed rates of withdrawal were changed from select and ultimate rates to service-based
rates. The changes result in more assumed terminations.
-
Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49.
Overall, proposed rates result in more projected disabilities.
- Assumed percent married for active female members was changed from 60% to 70%.
2020 Changes
Changes in Actuarial Assumptions:
- The mortality projection scale was changed from MP-2018 to MP-2019.
2019 Changes
Changes in Actuarial Assumptions
- The mortality projection scale was changed from MP-2017 to MP-2018
Changes in the Plan Provisions
- There have been no changes since the prior valuation.
2018 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2016 to MP-2017.
2017 Changes
Changes in Actuarial Assumptions:
The single discount rate was changed from 5.6% to 7.5%.
Assumed salary increases were changed as recommended in the June 30, 2016 experience
study. The net effect is proposed rates that average 0.34 percent lower than the previous
rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested
deferred members. The CSA has been changed to 33 percent for vested members and 2
percent for non-vested members.
The base mortality table for healthy annuitants was changed from the RP-2000 fully
generational table to the RP-2014 fully generational table (with a base year of 2006), with
male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from
Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed
from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees.
Assumed termination rates were decreased to 3.0 percent for the first three years of service.
Rates beyond the select period of three years were adjusted, resulting in more expected
terminations overall.
Assumed percentage of married female members was decreased from 65 percent to 60
percent.
113
CITY OF FRIDLEY, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2021
Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four
years older) to the assumption that males are two years older than females.
The assumed percentage of female members electing Joint and Survivor annuities was
increased.
The assumed post-retirement benefit increase rate was changed from 1.00 perfect for all
years to 1.00 percent per year through 2064 and 2.50 percent thereafter.
2016 Changes
Changes in Actuarial Assumptions:
- The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2037 and 2.5% thereafter to 1.0% per year for all future years.
- The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
changed from 7.9% to 5.6%.
- The assumed future salary increases, payroll growth, and inflation were decreased by 0.25%
to 3.25% for payroll growth and 2.50% for inflation.
114
COMBINING AND INDIVIDUAL FUND STATEMENTS AND
SCHEDULES
115
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116
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.
117
Exhibit C-1
Special Revenue Capital Project
2021 2020
Cash and investments $1,414,792 $5,414,862 $6,829,654 $6,516,490
Receivables:
Accounts 118,427 4,946 123,373 148,407
Taxes 10,178 953 11,131 16,513
Special assessments - 52,571 52,571 79,991
Due from other governments 131,814 6,968 138,782 206,912
Due from component unit - 494,528 494,528 475,508
Total assets $1,675,211 $5,974,828 $7,650,039 $7,443,821
Liabilities:
Accounts payable $51,732 $296,092 $347,824 $337,698
Deposits payable 750 32,936 33,686 33,136
Contracts payable - 43,581 43,581 132,317
Due to other governments 641 - 641 43,661
Due to other funds 16,872 - 16,872 25,334
Salaries payable 32,338 - 32,338 29,145
Unearned revenue 2,086 - 2,086 -
Total liabilities 104,419 372,609 477,028 601,291
Deferred inflows of resources:
Unavailable revenue 5,201 52,953 58,154 136,911
Fund balance:
Restricted 127,006 5,233 132,239 123,637
Committed 1,438,585 1,388,186 2,826,771 2,475,478
Assigned - 4,155,847 4,155,847 4,107,071
Unassigned - - - (567)
Total fund balance 1,565,591 5,549,266 7,114,857 6,705,619
Total liabilities, deferred inflows
of resources, and fund balance $1,675,211 $5,974,828 $7,650,039 $7,443,821
Assets
Liabilities, Deferred Inflows of Resources, and Fund Balance
Total Nonmajor Governmental
Funds
CITY OF FRIDLEY, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2021
With Comparative Totals For December 31, 2020
The accompanying notes are an integral part of these financial statements.
118
Exhibit C-2
Special Capital
Revenue Project
2021 2020
Revenues:
Taxes $428,723 $63,400 $492,123 $470,174
Special assessments - 60,660 60,660 48,215
Licenses and permits 260,474 - 260,474 257,032
Intergovernmental revenue 143,270 1,068,926 1,212,196 3,326,829
Charges for services 960,301 2,520 962,821 757,336
Fines and forfeits 23,670 - 23,670 52,972
Investment income (loss)(9,459) (34,869) (44,328) 220,610
Contributions and donations 24,843 - 24,843 75,891
Miscellaneous 6,420 25,142 31,562 64,264
Total revenues 1,838,242 1,185,779 3,024,021 5,273,323
Expenditures:
Current:
General government 905,598 276,364 1,181,962 1,099,018
Public safety 383,389 146,623 530,012 383,706
Public works - 13,527 13,527 -
Parks and recreation 589,774 183,649 773,423 657,380
Community development - 5,196 5,196 -
Debt service - 8 8 -
Capital outlay - 583,109 583,109 1,739,904
Total expenditures 1,878,761 1,208,476 3,087,237 3,880,008
Excess (deficiency) of revenues over (under) expenditures (40,519) (22,697) (63,216) 1,393,315
Other financing sources (uses):
Proceeds from sale of capital assets - 129,604 129,604 21,429
Transfers in - 350,000 350,000 378,312
Transfers out - - - (2,171,608)
Total other financing sources (uses) - 479,604 479,604 (1,771,867)
Net change in fund balance (40,519) 456,907 416,388 (378,552)
Fund balance - January 1 1,606,110 5,092,359 6,698,469 7,084,171
Fund balance - December 31 $1,565,591 $5,549,266 $7,114,857 $6,705,619
Total Nonmajor
Governmental Funds
For The Year Ended December 31, 2021
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
With Comparative Totals For The Year Ended December 31, 2020
The accompanying notes are an integral part of these financial statements.
119
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120
NONMAJOR GOVERNMENTAL FUNDS
121
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122
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.
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.
123
Assets Cable TV
Solid Waste
Abatement
Cash and investments $1,123,624 $8,182
Receivables:
Accounts 77,844 40,583
Taxes - -
Due from other governments - 79,452
Total assets $1,201,468 $128,217
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $2,422 $38,670
Deposits payable - -
Due to other governments - -
Due to other funds - -
Salaries payable 8,020 1,936
Unearned revenue - -
Total liabilities 10,442 40,606
Deferred inflows of resources:
Unavailable revenue - -
Fund balance:
Restricted 52,095 -
Committed 1,138,931 87,611
Total fund balance 1,191,026 87,611
Total liabilities, deferred inflows
of resources, and fund balance $1,201,468 $128,217
With Comparative Totals For December 31, 2020
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2021
124
Exhibit C-3
Drug and Gambling
Forfeiture Police Activity
Springbrook Nature
Center
2021 2020
$75,315 $ - $207,671 $1,414,792 $1,467,796
- - - 118,427 148,407
- - 10,178 10,178 16,131
- 50,261 2,101 131,814 200,229
$75,315 $50,261 $219,950 $1,675,211 $1,832,563
$ - $253 $10,387 $51,732 $55,698
- - 750 750 200
536 105 - 641 43,661
- 16,872 - 16,872 25,334
- 5,655 16,727 32,338 29,145
2,086 - - 2,086 -
2,622 22,885 27,864 104,419 154,038
- - 5,201 5,201 56,787
72,693 - 2,218 127,006 123,637
- 27,376 184,667 1,438,585 1,498,101
72,693 27,376 186,885 1,565,591 1,621,738
$75,315 $50,261 $219,950 $1,675,211 $1,832,563
Totals Nonmajor Special Revenue Funds
125
Cable TV
Solid Waste
Abatement
Revenues:
Taxes $ - $ -
Licenses and permits 260,474 -
Intergovernmental revenue - 129,931
Charges for services 52,095 424,606
Fines and forfeits - -
Investment income (loss)(7,969) (140)
Contributions and donations - -
Miscellaneous - 5,191
Total revenues 304,600 559,588
Expenditures:
Current:
General government 344,332 561,266
Public safety - -
Parks and recreation - -
Total expenditures 344,332 561,266
Excess (deficiency) of revenues
over (under) expenditures (39,732) (1,678)
Other financing sources (uses):
Transfers in - -
Transfers out - -
Total other financing sources (uses) - -
Net change in fund balance (39,732)(1,678)
Fund balance - January 1 1,230,758 89,289
Fund balance - December 31 $1,191,026 $87,611
For The Year Ended December 31, 2021
With Comparative Totals For The Year Ended December 31, 2020
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
126
Exhibit C-4
Drug and Gambling
Forfeiture Police Activity
Springbrook Nature
Center
2021 2020
$ - $ - $428,723 $428,723 $411,474
- - - 260,474 257,032
13,339 - - 143,270 2,323,873
- 362,747 120,853 960,301 754,786
23,670 - - 23,670 52,972
- - (1,350) (9,459) 61,070
- - 24,843 24,843 20,579
- - 1,229 6,420 3,528
37,009 362,747 574,298 1,838,242 3,885,314
- - - 905,598 837,664
31,533 351,856 - 383,389 370,358
- - 589,774 589,774 557,105
31,533 351,856 589,774 1,878,761 1,765,127
5,476 10,891 (15,476) (40,519) 2,120,187
- - - - 4,165
- - - - (2,171,608)
- - - - (2,167,443)
5,476 10,891 (15,476) (40,519) (47,256)
67,217 16,485 202,361 1,606,110 1,668,994
$72,693 $27,376 $186,885 $1,565,591 $1,621,738
Reconciliation of beginning fund balance to prior year ending fund balance:
Prior year ending fund balance of funds reported as nonmajor in the prior year, major in the current year:
CARES/ARPA (15,628)
Current year beginning fund balance $1,606,110
Totals Nonmajor Special Revenue Funds
127
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128
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 used to account for capital improvements and
purchases.
Park Improvements Fund - is used to account for repairs and replacements of
city 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 Equipment Fund - is used to account for the purchase and repair of
major capital equipment.
The TIF 20 Note Payoff Fund – services debt on a Tax Increment Financing
District created by the Housing and Redevelopment Authority to support the
eligible costs associated with the redevelopment of the area known as Northern
Stacks.
129
Exhibit C-5
Assets
Special
Assessment
Construction
Capital
Projects
Building
Improvements
Park
Improvements
Information
System
Improvement
Capital
Equipment
TIF 20 Note
Payoff
2021 2020
Cash and investments $42,401 $1,490,155 $1,877,348 $422,247 $1,577,478 $5,233 $5,414,862 $5,048,694
Receivables:
Accounts - - 4,946 - - - 4,946 -
Taxes 820 - 133 - - - 953 382
Special assessments 52,571 - - - - - 52,571 79,991
Due from other governments - 6,968 - - - - 6,968 6,683
Due from component unit - 494,528 - - - - 494,528 475,508
Total assets $95,792 $1,991,651 $1,882,427 $422,247 $1,577,478 $5,233 $5,974,828 $5,611,258
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $6,506 $31,418 $31,363 $1,047 $225,758 $ - $296,092 $282,000
Deposits payable - - 32,936 - - - 32,936 32,936
Contracts payable - - 43,581 - - - 43,581 132,317
Due to other governments - - - - - - - -
Total liabilities 6,506 31,418 107,880 1,047 225,758 - 372,609 447,253
Deferred inflows of resources:
Unavailable revenue 52,820 - 133 - - - 52,953 80,124
Fund balance:
Restricted - - - - - 5,233 5,233 -
Committed 36,466 - - - 1,351,720 - 1,388,186 977,377
Assigned - 1,960,233 1,774,414 421,200 - - 4,155,847 4,107,071
Unassigned - - - - - - - (567)
Total fund balance 36,466 1,960,233 1,774,414 421,200 1,351,720 5,233 5,549,266 5,083,881
Total liabilities, deferred inflows
of resources, and fund balance $95,792 $1,991,651 $1,882,427 $422,247 $1,577,478 $5,233 $5,974,828 $5,611,258
CITY OF FRIDLEY, MINNESOTA
Totals Nonmajor Capital
Project Funds
With Comparative Totals For December 31, 2020
December 31, 2021
NONMAJOR CAPITAL PROJECT FUNDS
SUBCOMBINING BALANCE SHEET
The accompanying notes are an integral part of these financial statements.
130
Exhibit C-6
Special
Assessment
Construction
Capital
Projects
Building
Improvements
Park
Improvements
Information
System
Improvement
Capital
Equipment
TIF 20 Note
Payoff
2021 2020
Revenues:
Taxes $ - $ - $ - $63,400 $ - $ - $63,400 $58,700
Special assessments 60,660 - - - - - 60,660 48,215
Intergovernmental revenue - 26,968 250,000 200,000 591,958 - 1,068,926 1,002,956
Charges for services - - - 2,520 - - 2,520 2,550
Investment income (loss) 78 (10,668) (16,060) (129) (4,853) (3,237) (34,869) 159,540
Contributions and donations - - - - - - - 55,312
Miscellaneous - 19,020 - - 6,122 - 25,142 60,736
Total revenues 60,738 35,320 233,940 265,791 593,227 (3,237) 1,185,779 1,388,009
Expenditures:
Current:
General government 23,705 91,087 - 159,828 1,744 - 276,364 261,354
Public safety - - - - 146,623 - 146,623 13,348
Public works - - - - 13,527 - 13,527 -
Parks and recreation - - 151,887 - 31,762 - 183,649 100,275
Community development - - - - 5,196 - 5,196 -
Debt Service - - - - - 8 8
Capital outlay - 20,181 238,292 - 324,636 - 583,109 1,739,904
Total expenditures 23,705 111,268 390,179 159,828 523,488 8 1,208,476 2,114,881
Excess (deficiency) of revenues
over (under) expenditures 37,033 (75,948) (156,239) 105,963 69,739 (3,245) (22,697) (726,872)
Other financing sources (uses):
Proceeds from sale of capital assets - - - - 129,604 - 129,604 21,429
Transfers in - - 175,000 - 175,000 - 350,000 374,147
Total other financing sources (uses) - - 175,000 - 304,604 0 479,604 395,576
Net change in fund balance 37,033 (75,948) 18,761 105,963 374,343 (3,245) 456,907 (331,296)
Fund balance - January 1 (567) 2,036,181 1,755,653 315,237 977,377 8,478 5,092,359 5,415,177
Fund balance - December 31 $36,466 $1,960,233 $1,774,414 $421,200 $1,351,720 $5,233 $5,549,266 $5,083,881
Reconciliation of beginning fund balance to prior year ending fund balance:
Prior year ending fund balance of funds reported as major in the prior year, nonmajor in the current year:
TIF 20 Note Payoff 8,478
Current year beginning fund balance $5,092,359
Totals Nonmajor Capital
Project Funds
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2021
With Comparative Totals For The Year Ended December 31, 2020
The accompanying notes are an integral part of these financial statements.
131
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132
INDIVIDUAL BUDGET TO ACTUAL STATEMENTS
SPECIAL REVENUE FUNDS
133
Exhibit D-1
2020
Actual Actual
Original Final Amounts Amounts
Revenues:
Licenses - franchise fee $255,400 $255,400 $260,474 $257,032
Charges for services 28,900 28,900 52,095 -
Investment income:
Interest and dividends 14,900 14,900 16,410 28,386
Net change in the fair value of investments - - (24,379) 10,614
Miscellaneous - - - -
Total revenues 299,200 299,200 304,600 296,032
Expenditures:
Current:
General government:
Personal services 204,000 204,000 202,810 195,193
Supplies and other charges 175,310 175,310 141,522 138,662
Total expenditures 379,310 379,310 344,332 333,855
Excess (deficiency) of revenues over
(under) expenditures ($80,110) ($80,110) (39,732) (37,823)
Fund balance - January 1 1,230,758 1,268,581
Fund balance - December 31 $1,191,026 $1,230,758
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - CABLE TV FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
For The Year Ended December 31, 2021
2021
Budgeted Amounts
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
With Comparative Actual Amounts The Year Ended December 31, 2020
134
Exhibit D-2
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - SOLID WASTE ABATEMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
2020
Actual Actual
Original Final Amounts Amounts
Revenues:
Intergovernmental revenue:
State $126,970 $126,970 $129,931 $131,884
Charges for services 419,600 419,600 424,606 366,996
Investment income:
Interest and dividends 400 400 587 770
Net change in the fair value of investments - - (727) 290
Miscellaneous 3,500 3,500 5,191 1,783
Total revenues 550,470 550,470 559,588 501,723
Expenditures:
Current:
General government:
Personal services 57,600 57,600 51,580 49,310
Supplies and other charges 481,170 481,170 509,686 454,499
Total expenditures 538,770 538,770 561,266 503,809
Excess (deficiency) of revenues
over (under) expenditures $11,700 $11,700 (1,678) (2,086)
Fund balance - January 1 89,289 91,375
Fund balance - December 31 $87,611 $89,289
2021
Budgeted Amounts
For The Year Ended December 31, 2021
With Comparative Actual Amounts The Year Ended December 31, 2020
135
Exhibit D-3
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - POLICE ACTIVITY FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
2020
Actual Actual
Original Final Amounts Amounts
Revenues:
Charges for services $405,320 $405,320 $362,747 $350,598
Expenditures:
Public safety:
Personal services 146,800 146,800 147,397 140,928
Supplies and other charges 258,520 258,520 204,459 206,345
Total expenditures 405,320 405,320 351,856 347,273
Excess (deficiency) of revenues
over (under) expenditures $0 $0 $10,891 $3,325
Fund balance - January 1 16,485 13,160
Fund balance - December 31 $27,376 $16,485
2021
Budgeted Amounts
For The Year Ended December 31, 2021
With Comparative Actual Amounts The Year Ended December 31, 2020
136
Exhibit D-4
CITY OF FRIDLEY, MINNESOTA
SPECIAL REVENUE FUND - SPRINGBROOK NATURE CENTER FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
2020
Actual Actual
Original Final Amounts Amounts
Revenues:
Taxes $414,400 $414,400 $428,723 $411,474
Intergovernmental revenue - - - 20,381
Charges for service 90,800 90,800 120,853 37,192
Investment income:
Interest and dividends 600 600 1,834 3,950
Net change in the fair value of investments - - (3,184) 1,432
Contributions and donations 39,000 39,000 24,843 20,579
Miscellaneous 2,100 2,100 1,229 1,745
Total revenues 546,900 546,900 574,298 496,753
Expenditures:
Current:
Parks, recreation and naturalist
Personal services 478,000 478,000 474,001 432,422
Supplies and other charges 100,900 100,900 115,773 124,683
Total expenditures 578,900 578,900 589,774 557,105
Excess (deficiency) of revenues
over (under) expenditures (32,000) (32,000) (15,476) (60,352)
Other financing sources (uses):
Transfers in - - - 4,165
Transfers out - - - -
Total other financing sources (uses) - - - 4,165
Net change in fund balance ($32,000) ($32,000) (15,476) (56,187)
Fund balance - January 1 202,361 258,548
Fund balance - December 31 $186,885 $202,361
2021
Budgeted Amounts
For The Year Ended December 31, 2021
With Comparative Actual Amounts The Year Ended December 31, 2020
137
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138
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 and pension 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.
139
Exhibit E-1
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31, 2021
Employee
Benefits Self Insurance Totals
Assets:
Cash and investments $1,571,521 $1,026,681 $2,598,202
Deferred outflows of resources:
Pension related 8,726,017 - 8,726,017
Liabilities:
Current liabilities:
Accounts payable 370 764 1,134
Payroll deductions payable 145,913 - 145,913
Compensated absences payable - current portion 830,934 - 830,934
Total current liabilities 977,217 764 977,981
Noncurrent liabilities:
Compensated absences payable - long-term portion 317,466 - 317,466
Net pension liability 7,221,459 - 7,221,459
Total liabilities 8,516,142 764 8,516,906
Deferred inflows of resources:
Pension related 11,557,042 - 11,557,042
Net position:
Unrestricted (9,775,646) 1,025,917 (8,749,729)
Total net position ($9,775,646) $1,025,917 ($8,749,729)
140
Exhibit E-2
Employee
Benefits
Self
Insurance Totals
Operating revenues:
Charges for services $1,416,791 $350,495 $1,767,286
Operating expenses:
Personal services (262,052) - (262,052)
Supplies and other charges 27,459 326,494 353,953
Total operating expenses (234,593) 326,494 91,901
Operating income (loss)1,651,384 24,001 1,675,385
Nonoperating revenues:
Investment income (loss)(9,031) (6,639) (15,670)
Intergovernmental 70,054 - 70,054
Insurance reimbursement - 55,175 55,175
Total nonoperating revenues 61,023 48,536 109,559
Change in net position 1,712,407 72,537 1,784,944
Net position - January 1 (11,488,053) 953,380 (10,534,673)
Net position - December 31 ($9,775,646) $1,025,917 ($8,749,729)
For The Year Ended December 31, 2021
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
141
Exhibit E-3
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
Employee
Benefits
Self
Insurance Totals
Cash flows from operating activities:
Receipts from interfund services provided $1,416,791 $362,084 $1,778,875
Payment to suppliers (27,592) (336,261) (363,853)
Payment to employees (1,420,162) - (1,420,162)
Net cash flows from operating activities (30,963) 25,823 (5,140)
Cash flows from noncapital financing activities:
Intergovernmental revenue 70,054 - 70,054
Cash flows from capital and related
financing activities:
Insurance reimbursement - 55,175 55,175
Cash flows from investing activities:
Investment income (9,031) (6,639) (15,670)
Net increase (decrease) in cash and
cash equivalents 30,060 74,359 104,419
Cash and cash equivalents - January 1 1,541,461 952,322 2,493,783
Cash and cash equivalents - December 31 $1,571,521 $1,026,681 $2,598,202
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) $1,651,384 $24,001 $1,675,385
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities:
Changes in assets and liabilities:
Decrease (increase) in receivables - 11,589 11,589
Decrease (increase) in deferred
outflows of resources (5,002,922) - (5,002,922)
Increase (decrease) in payables (3,712,800) (9,767) (3,722,567)
Increase (decrease) in deferred
inflows of resources 7,033,375 - 7,033,375
Total adjustments (1,682,347) 1,822 (1,680,525)
Net cash provided by operating activities ($30,963) $25,823 ($5,140)
For The Year Ended December 31, 2021
142
HOUSING AND REDEVELOPMENT AUTHORITY
COMPONENT UNIT
143
General Housing Loan
Gateway
Northeast
BAE Northern
Stacks
Assets
Cash and investments $8,753,156 $1,335,480 $34,892 $1,765,189
Receivables:
Accounts 60,141 - - -
Note 1,000,000 - - -
Taxes 17,044 - - 5,317
Mortgage:
Deferred - 1,806,444 - -
Interest 16,397 - - -
Due from other funds 10,622,922 - - -
Land held for resale 283,470 - - -
Total assets $20,753,130 $3,141,924 $34,892 $1,770,506
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $10,574 $145,387 $ - $ -
Due to primary government 497,142 - - -
Due to other governments - - - -
Due to other funds - - 2,901,765 -
Total liabilities 507,716 145,387 2,901,765 0
Deferred inflows of resources:
Unavailable revenue 693,917 - - 5,317
Fund balance (deficit):
Nonspendable - 1,806,444 - -
Restricted - - - 1,765,189
Committed 1,025,322 1,190,093 - -
Unassigned 18,526,175 - (2,866,873) -
Total fund balance (deficit)19,551,497 2,996,537 (2,866,873)1,765,189
Total liabilities, deferred inflows
of resources, and fund balance $20,753,130 $3,141,924 $34,892 $1,770,506
CITY OF FRIDLEY, MINNESOTA
BALANCE SHEET - GOVERNMENTAL FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
December 31, 2021
With Comparative Totals For December 31, 2020
144
Exhibit F-1
BAE Hazardous
Sub District Locke Point Park Lake Pointe
Northstar
Transit Station
Other
Governmental
Funds
Intra - Activity
Eliminations
2021 2020
$7,852 $14,108 $278,167 $1,470,257 $807,541 $ - $14,466,642 $12,075,562
- - - - - - 60,141 72,288
- - - - - - 1,000,000 1,000,000
- 378 - - 918 - 23,657 350,453
- - - - - - 1,806,444 1,389,674
- - - - - - 16,397 18,773
- - - - - (10,622,922) - -
- - - - 83,660 - 367,130 293,130
$7,852 $14,486 $278,167 $1,470,257 $892,119 ($10,622,922) $17,740,411 $15,199,880
$ - $ - $272,805 $170 $100,248 $ - $529,184 $444,644
- - - - - - 497,142 530,597
- - - - - - - 23,463
2,668,461 4,348,016 215,303 - 489,377 (10,622,922) - -
2,668,461 4,348,016 488,108 170 589,625 (10,622,922) 1,026,326 998,704
- - - - 83,660 - 782,894 708,547
- - - - - - 1,806,444 1,389,674
- - - 1,470,087 658,901 - 3,894,177 2,352,805
- - - - - - 2,215,415 1,771,854
(2,660,609) (4,333,530) (209,941) - (440,067) - 8,015,155 7,978,296
(2,660,609) (4,333,530) (209,941) 1,470,087 218,834 0 15,931,191 13,492,629
$7,852 $14,486 $278,167 $1,470,257 $892,119 ($10,622,922) $17,740,411 $15,199,880
Fund balance reported above $15,931,191 $13,492,629
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 1,011,755 1,011,755
Other long-term assets are not available to pay for current-period
expenditures and, therefore, are reported as unavailable revenue 782,894 708,547
Other post employment benefits are not due and payable in the current period
and, therefore, are not reported in the funds.(1,359)(2,132)
Net position of governmental activities $17,724,481 $15,210,799
Totals Governmental Funds
145
General Housing Loan
Gateway
Northeast
BAE Northern
Stacks
Revenues:
Tax increment $ - $ - $560,278 $2,281,489
Property taxes 564,490 - - -
Investment income/(loss) (48,455) (12,988) (1,286) (1,543)
Mortgage interest earnings - 31,306 - -
Interfund loan interest earnings 679,089 - - -
Intergovernmental - - - -
Payments from primary government - - - -
Sale of real estate 145,283 - - -
Miscellaneous 434,690 - - -
Total revenues 1,775,097 18,318 558,992 2,279,946
Expenditures:
Personal services 159,817 - - -
Supplies and other charges 400,155 66,946 56,652 229,208
Developer assistance 10,810 116,363 - -
Interest expense 19,020 - 130,838 -
Payments to primary government - - - 1,090,038
Redevelopment expense 382,585 - - -
Total expenditures 972,387 183,309 187,490 1,319,246
Excess (deficiency of revenues
over (under expenditures 802,710 (164,991) 371,502 960,700
Other financing sources (uses):
Transfers in 1,765,597 - - -
Transfers out - - - -
Total other financing sources (uses) 1,765,597 - - -
Net change in fund balance 2,568,307 (164,991) 371,502 960,700
Fund balance (deficit) - January 1 16,983,190 3,161,528 (3,238,375) 804,489
Fund balance (deficit) - December 31 $19,551,497 $2,996,537 ($2,866,873) $1,765,189
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CITY OF FRIDLEY, MINNESOTA
With Comparative Totals For The Year Ended December 31, 2020
For The Year Ended December 31, 2021
HOUSING AND REDEVELOPMENT AUTHORITY
GOVERNMENTAL FUNDS
146
Exhibit F-2
BAE
Hazardous
Sub District
Locke Point
Park Lake Pointe
Northstar
Transit
Station
Other
Governmental
Funds
Intra-Activity
Eliminations
2021 2020
$307,680 $75,182 $601,474 $718,920 $390,909 $ - $4,935,932 $4,259,508
- - - - - - 564,490 527,366
(1,085) - (406) (6,157)(3,763) - (75,683) 100,803
- - - - - - 31,306 40,057
- - - - - - 679,089 267,094
- - - - - - - 14,769
- - - - - - - 14,962,612
- - - - - - 145,283 2,174,528
- - - - - - 434,690 400,502
306,595 75,182 601,068 712,763 387,146 - 6,715,107 22,747,239
- - - - - - 159,817 172,512
31,392 9,826 28,428 97,710 68,877 - 989,194 990,352
- - 541,327 - 283,126 - 951,626 16,586,739
99,369 448,883 - - - - 698,110 286,615
- - - - - - 1,090,038 863,674
- - - - 5,175 - 387,760 -
130,761 458,709 569,755 97,710 357,178 - 4,276,545 18,899,892
175,834 (383,527) 31,313 615,053 29,968 - 2,438,562 3,847,347
- - - - - (1,765,597) - -
- (1,765,597) - - - 1,765,597 - -
- (1,765,597) - - - - - -
175,834 (2,149,124) 31,313 615,053 29,968 - 2,438,562 3,847,347
(2,836,443) (2,184,406) (241,254) 855,034 188,866 - 13,492,629 9,645,282
($2,660,609) ($4,333,530) ($209,941) $1,470,087 $218,834 $0 $15,931,191 $13,492,629
Amounts reported for governmental activities in the statement of activities
(Exhibit A-2) are different because:
Net changes in fund balances - total above $2,438,562 $3,847,347
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.773 107
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.74,347 (66,482)
Changes in net position of governmental activities (Exhibit A-2)$2,513,682 $3,780,972
Totals Governmental Funds
147
Gateway East
Gateway
West
Housing
Replacement
Assets
Cash and investments $54,691 $19,147 $127,544
Taxes receivable - - -
Land held for resale - 2,610 81,050
Total assets $54,691 $21,757 $208,594
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $ - $ - $340
Due to other funds 211,653 240,109 -
Total liabilities 211,653 240,109 340
Deferred inflows of resources:
Unavailable revenue - 2,610 81,050
Fund balance (deficit):
Restricted - - 127,204
Unassigned (156,962) (220,962) -
Total fund balance (deficit) (156,962) (220,962) 127,204
Total liabilities, deferred inflows
of resources, and fund balance $54,691 $21,757 $208,594
CITY OF FRIDLEY, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
HOUSING AND REDEVELOPMENT AUTHORITY
December 31, 2021
With Comparative Totals For December 31, 2020
148
Exhibit F-3
McGlynn
Bakeries
Satellite Lane
Apts. Main Street
Northern
Stacks VIII Holly Center
2021 2020
$145,357 $399,010 $61,792 $ - $ - $807,541 $1,709,911
- 918 - - - 918 2,261
- - - - - 83,660 78,660
$145,357 $399,928 $61,792 $0 $0 $892,119 $1,790,832
$13,588 $ - $65,963 $20,357 $ - $100,248 $361,486
- - - 12,368 25,247 489,377 546,910
13,588 0 65,963 32,725 25,247 589,625 908,396
- - - - - 83,660 79,790
131,769 399,928 - - - 658,901 1,548,316
- - (4,171) (32,725) (25,247) (440,067) (745,670)
131,769 399,928 (4,171) (32,725) (25,247) 218,834 802,646
$145,357 $399,928 $61,792 $0 $0 $892,119 $1,790,832
Total Nonmajor Capital Project
Funds
149
Gateway East
Gateway
West
Housing
Replacement
McGlynn
Bakeries
Revenues:
Tax increment $48,159 $38,974 $53,580 $ -
Investment income/(loss) (344) (139) (672) -
Total revenues 47,815 38,835 52,908 0
Expenditures:
Supplies and other charges 983 718 23,199 -
Developer assistance - - - 106,492
Redevelopment expense - - 5,175 -
Total expenditures 983 718 28,374 106,492
Net change in fund balance 46,832 38,117 24,534 (106,492)
Fund balance (deficit) - January 1 (203,794) (259,079) 102,670 238,261
Fund balance (deficit) - December 31 ($156,962) ($220,962) $127,204 $131,769
AND CHANGES IN FUND BALANCE
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES
CITY OF FRIDLEY, MINNESOTA
With Comparative Totals For December 31, 2020
For The Year Ended December 31, 2021
HOUSING AND REDEVELOPMENT AUTHORITY
NONMAJOR CAPITAL PROJECT FUNDS
150
Exhibit F-4
Satellite Lane
Apts.Main Street
Northern Stacks
VIII Holly Center
2021 2020
$53,935 $151,023 $45,238 $ - $390,909 $1,326,881
(2,608) - - - (3,763) 13,787
51,327 151,023 45,238 0 387,146 1,340,668
3,750 16,733 5,062 18,432 68,877 162,405
- 135,920 40,714 - 283,126 786,214
- - - - 5,175 -
3,750 152,653 45,776 18,432 357,178 948,619
47,577 (1,630)(538)(18,432) 29,968 392,049
352,351 (2,541) (32,187)(6,815) 188,866 410,597
$399,928 ($4,171) ($32,725) ($25,247) $218,834 $802,646
Reconciliation of beginning fund balance to prior year ending fund balance:
Prior year ending fund balance as shown above $802,646
Prior year ending fund balance of funds reported as nonmajor in the prior year,
major in the current year:
Lake Pointe 241,254
Northstar Transit Station (855,034)
Current year beginning fund balance $188,866
Totals Nonmajor Capital
Project Funds
151
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152
CUSTODIAL FUNDS
Custodial 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.
153
Exhibit G-1
Hotel/Motel Tax
Assets:
Cash and investments $6,337
Accounts receivables 5,829
Total assets $12,166
Liabilities:
Accounts payable 12,166
Net Position:
Restricted $ -
CITY OF FRIDLEY, MINNESOTA
COMBINING STATEMENT OF NET POSITION
CUSTODIAL FUND
December 31, 2021
154
Exhibit G-2
Hotel/Motel Tax
Additions:
Tax collections from other government $90,924
Total additions 90,924
Deductions:
Payments of tax to other governments 86,378
Administrative fee 4,546
Total deductions 90,924
Net increase (decrease) in Fiduciary net position -
Net position - beginning -
Net position - ending $ -
CITY OF FRIDLEY, MINNESOTA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUND
For The Year Ended December 31, 2021
155
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156
III. STATISTICAL SECTION (UNAUDITED)
157
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158
Statistical Section (Unaudited)
This part of the City of Fridley's statistical annual comprehensive 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.
Contents Page
Financial Trends 160
These schedules contain trend information to help the reader understand how the
City's financial performance and well-being have changed over time.
Revenue Capacity 170
These schedules contain information to help the reader assess the factors
affecting the City's ability to generate its property tax.
Debt Capacity 176
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 Information 182
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 Information 186
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.
159
2012 2013 2014 2015
Governmental activities:
Net investment in capital assets $14,139,656 $13,842,497 $14,186,359 $16,811,842
Restricted 3,294,952 3,050,204 2,673,982 2,233,179
Unrestricted 24,238,798 24,551,730 25,321,659 16,052,833
Total governmental activities net position $41,673,406 $41,444,431 $42,182,000 $35,097,854
Business-type activities:
Net investment in capital assets $13,560,980 $12,910,117 $13,053,816 $14,234,711
Unrestricted 8,235,948 8,417,085 8,727,382 8,058,181
Total business-type activities net position $21,796,928 $21,327,202 $21,781,198 $22,292,892
Primary government:
Net investment in capital assets $27,700,636 $26,752,614 $27,240,175 $31,046,553
Restricted 3,294,952 3,050,204 2,673,982 2,233,179
Unrestricted 32,474,746 32,968,815 34,049,041 24,111,014
Total primary government net position $63,470,334 $62,771,633 $63,963,198 $57,390,746
Note: GASB 68 was implemented in 2015. Net position was restated for 2014 to reflect the reporting of net position
liability and pension related deferred outflows of resources. Net position for years prior to 2014 was not restated.
CITY OF FRIDLEY, MINNESOTA
NET POSITION BY COMPONENT
Last ten fiscal years
(Accrual Basis of Accounting)
160
Table 1
2016 2017 2018 2019 2020 2021
$23,932,586 $31,006,344 $30,070,173 $27,349,945 $31,075,685 $29,987,129
2,204,983 2,739,575 2,977,454 3,047,005 3,662,136 2,763,121
13,175,954 8,889,557 11,049,555 15,961,597 5,783,139 9,898,422
$39,313,523 $42,635,476 $44,097,182 $46,358,547 $40,520,960 $42,648,672
$13,913,434 $13,897,925 $15,068,876 $18,211,710 $21,135,232 $23,043,111
9,567,290 11,077,566 12,674,876 11,837,418 11,052,792 12,250,803
$23,480,724 $24,975,491 $27,743,752 $30,049,128 $32,188,024 $35,293,914
$37,846,020 $44,904,269 $45,139,049 $45,561,655 $52,210,917 $53,030,240
2,204,983 2,739,575 2,977,454 3,047,005 3,662,136 2,763,121
22,743,244 19,967,123 23,724,431 27,799,015 16,835,931 22,149,225
$62,794,247 $67,610,967 $71,840,934 $76,407,675 $72,708,984 $77,942,586
161
2012 2013 2014 2015
Expenses
Governmental activities:
General government $3,155,983 $3,434,479 $4,092,123 $4,156,904
Public safety 6,999,554 7,101,331 7,570,322 8,048,655
Public works 5,420,271 5,928,331 5,959,595 5,127,667
Community development 880,414 935,716 898,455 1,107,348
Parks and recreation 1,355,571 1,456,841 1,513,135 1,353,320
Interest on long-term debt 232,318 218,610 179,420 144,064
Total governmental activities expenses 18,044,111 19,075,308 20,213,050 19,937,958
Business-type activities:
Liquor 4,354,909 4,148,447 4,596,316 4,914,786
Water 2,647,176 2,815,588 2,902,419 3,101,356
Sanitary sewer 4,653,434 4,974,525 4,988,587 5,040,861
Storm water 602,923 587,036 597,915 785,626
Total business-type activities expenses 12,258,442 12,525,596 13,085,237 13,842,629
Total primary government expenses $30,302,553 $31,600,904 $33,298,287 $33,780,587
Program revenues
Governmental activities:
Charges for services:
General government $1,979,737 $2,025,108 $2,079,719 $1,905,021
Public safety 862,584 864,435 683,418 619,630
Public works 28,144 99,289 27,312 53,589
Community development 554,129 582,280 798,392 1,194,534
Parks and recreation 369,899 326,067 327,508 336,847
Operating grants and contributions 1,030,887 1,095,724 1,837,860 1,139,385
Capital grants and contributions 1,564,146 1,747,303 1,220,903 2,370,009
Total governmental activities program revenues 6,389,526 6,740,206 6,975,112 7,619,015
Business-type activities:
Charges for services:
Liquor 4,705,523 4,308,791 4,786,987 5,256,840
Water 2,773,101 2,788,146 2,913,717 2,907,123
Sanitary sewer 4,549,254 4,572,798 4,754,492 4,809,679
Storm water 571,707 613,818 732,961 1,225,153
Operating grants and contributions - 50,000 - -
Capital grants and contributions - - 440,627 421,990
Total business-type activities program revenues 12,599,585 12,333,553 13,628,784 14,620,785
Total primary government program revenues $18,989,111 $19,073,759 $20,603,896 $22,239,800
CITY OF FRIDLEY, MINNESOTA
CHANGES IN NET POSITION
Last ten fiscal years
(Accrual basis of accounting)
162
Table 2
Page 1 of 2
2016 2017 2018 2019 2020 2021
$4,398,370 $4,298,149 $3,697,097 $5,504,858 $6,003,817 $5,851,445
10,313,163 9,129,111 9,274,465 10,035,219 9,946,434 9,816,095
4,975,340 5,112,090 4,699,946 5,677,069 5,304,937 5,698,161
1,126,835 981,433 946,173 973,708 16,037,288 1,051,339
1,440,232 1,720,811 1,835,082 1,565,950 1,459,005 1,754,110
97,684 2,292,957 1,685,039 1,795,560 2,012,685 1,881,282
22,351,624 23,534,551 22,137,802 25,552,364 40,764,166 26,052,432
5,043,703 5,110,714 5,544,091 5,698,502 6,115,659 6,552,204
3,076,493 3,531,649 3,047,417 2,811,051 3,192,159 3,086,716
5,068,146 5,340,062 5,347,742 5,722,230 5,911,370 5,776,014
1,030,467 1,085,780 1,071,446 1,208,564 1,243,060 1,288,000
14,218,809 15,068,205 15,010,696 15,440,347 16,462,248 16,702,934
$36,570,433 $38,602,756 $37,148,498 $40,992,711 $57,226,414 $42,755,366
$2,031,207 $2,021,012 $2,244,912 $2,236,868 $1,490,036 $1,623,061
742,523 798,510 840,976 558,695 2,181,463 2,066,986
32,522 34,681 53,360 31,841 792,658 874,269
1,108,177 895,125 1,206,364 1,502,589 971,674 1,299,234
333,766 352,245 319,998 317,088 59,289 233,035
1,077,559 1,847,380 1,185,939 1,845,628 1,603,520 1,483,495
6,296,532 5,333,480 520,201 1,334,148 6,096,584 1,265,349
11,622,286 11,282,433 6,371,750 7,826,857 13,195,224 8,845,429
5,439,423 5,520,161 6,029,627 6,195,797 6,708,539 7,290,355
3,330,350 3,486,965 3,912,727 3,798,381 4,143,249 4,666,860
5,298,995 5,640,419 6,095,556 6,075,840 5,937,276 6,325,191
1,324,460 1,378,095 1,433,935 1,491,252 1,523,085 1,600,201
67,551 61,476 - 251,666 118,410 -
186,791 713,655 499,800 - 163,816 275,449
15,647,570 16,800,771 17,971,645 17,812,936 18,594,375 20,158,056
$27,269,856 $28,083,204 $24,343,395 $25,639,793 $31,789,599 $29,003,485
163
2012 2013 2014 2015
Net (expense) revenue:
Governmental activities ($11,654,585) ($12,335,102) ($13,237,938) ($12,318,943)
Business-type activities 341,143 (192,043) 543,547 778,156
Total primary government net (expense) revenue ($11,313,442) ($12,527,145) ($12,694,391) ($11,540,787)
General revenues and other changes in net position
Governmental activities:
General property taxes $10,654,542 $11,003,455 $11,521,196 $11,795,707
Grants not restricted to programs 1,030,123 1,033,814 1,476,664 1,325,388
Investment earnings 269,240 (216,821) 634,411 157,281
Gain (loss) on sale of property 56,598 35,680 - 67,581
Other - - 93,236 418,640
Transfers 350,000 250,000 250,000 338,600
Total governmental activities 12,360,503 12,106,128 13,975,507 14,103,197
Business-type activities:
Grants not restricted to programs - - - 2,413
Investment earnings 65,537 (52,346) 148,248 42,722
Gain (loss) on sale of property 9,680 - - 10,672
Other - 24,663 12,201 16,331
Transfers (350,000) (250,000) (250,000) (338,600)
Total business-type activities (274,783) (277,683) (89,551) (266,462)
Total primary government $12,085,720 $11,828,445 $13,885,956 $13,836,735
Change in net position:
Governmental activities $705,918 ($228,974) $737,569 $1,784,254
Business-type activities 66,360 (469,726) 453,996 511,694
Total primary government $772,278 ($698,700) $1,191,565 $2,295,948
Note: GASB 68 was implemented in 2015. Pension expense for years prior to 2015 was not restated.
CHANGES IN NET POSITION
Last ten fiscal years
(Accrual basis of accounting)
CITY OF FRIDLEY, MINNESOTA
164
Table 2
Page 2 of 2
2016 2017 2018 2019 2020 2021
($10,729,338) ($12,252,118) ($15,766,052) ($17,725,507) ($27,568,942) ($17,207,003)
1,428,761 1,732,566 2,960,949 2,372,589 2,132,127 3,455,122
($9,300,577) ($10,519,552) ($12,805,103) ($15,352,918) ($25,436,815) ($13,751,881)
$12,222,937 $13,884,775 $14,839,034 $15,387,457 $16,225,057 $16,932,793
1,763,614 657,546 1,613,020 1,670,719 3,948,112 1,848,065
254,379 413,165 651,609 811,009 980,709 (180,488)
11,005 - (335,183) (249,165)21,429 129,604
354,572 280,085 120,778 2,028,352 298,544 266,241
338,500 338,500 338,500 338,500 257,504 338,500
14,945,007 15,574,071 17,227,758 19,986,872 21,731,355 19,334,715
- - 8,957 8,957 - -
95,713 68,805 142,716 257,520 262,616 (24,062)
- 16,000 (7,046)3,772 - 12,450
1,858 15,896 1,185 1,038 1,657 880
(338,500) (338,500) (338,500) (338,500) (257,504) (338,500)
(240,929) (237,799) (192,688)(67,213)6,769 (349,232)
$14,704,078 $15,336,272 $17,035,070 $19,919,659 $21,738,124 $18,985,483
$4,215,669 $3,321,953 $1,461,706 $2,261,365 ($5,837,587) $2,127,712
1,187,832 1,494,767 2,768,261 2,305,376 2,138,896 3,105,890
$5,403,501 $4,816,720 $4,229,967 $4,566,741 ($3,698,691) $5,233,602
165
2012 2013 2014 2015
General Fund:
Nonspendable $66,152 $50,366 $60,123 $66,265
Restricted 20,810 40,012 15,176 19,376
Unassigned 7,582,360 7,997,036 8,242,331 8,858,309
Total general fund $7,669,322 $8,087,414 $8,317,630 $8,943,950
All other governmental funds:
Restricted $3,093,302 $2,233,664 $2,071,259 $1,808,572
Committed 2,328,583 2,124,944 2,566,101 2,709,638
Assigned 11,783,596 11,618,835 11,949,555 11,272,588
Unassigned (97,712)(98,566)(97,712)(43,153)
Total all other governmental funds $17,107,769 $15,878,877 $16,489,203 $15,747,645
CITY OF FRIDLEY, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
(Modified accrual basis of accounting)
166
Table 3
2016 2017 2018 2019 2020 2021
$51,305 $55,777 $77,801 $53,334 $65,779 $105,578
35,903 14,466 20,335 42,180 24,513 20,849
9,084,228 9,522,843 11,045,978 10,166,947 13,603,533 10,598,912
$9,171,436 $9,593,086 $11,144,114 $10,262,461 $13,693,825 $10,725,339
$1,903,290 $34,821,855 $5,009,553 $12,775,223 $3,566,713 $3,720,128
2,549,903 2,658,339 6,765,928 11,165,161 11,550,431 16,180,954
10,573,287 8,510,134 4,567,369 6,177,195 6,362,198 6,811,853
(27,574) (9,453) - - (567) (52,012)
$14,998,906 $45,980,875 $16,342,850 $30,117,579 $21,478,775 $26,660,923
167
2012 2013 2014 2015
Revenues:
General property taxes $10,732,129 $11,024,785 $11,554,557 $11,805,580
Special assessments 763,920 834,120 938,290 542,248
Licenses and permits 1,104,504 1,123,635 1,171,365 1,549,785
Intergovernmental 2,649,207 2,643,728 3,208,442 4,375,972
Charges for services 2,353,888 2,545,908 2,518,062 2,374,896
Fines and forfeits 255,622 218,194 226,922 184,940
Earnings on investments 236,226 (185,473) 565,245 157,281
Interest on loan - - - -
Other 322,354 295,409 314,416 429,713
Total revenues $18,417,850 $18,500,306 $20,497,299 $21,420,415
Expenditures:
Current:
General government 3,503,326 3,279,657 3,732,056 3,777,688
Public safety 6,422,646 6,794,524 7,165,678 7,319,564
Public works 3,047,300 3,530,939 4,635,752 3,575,252
Community development 772,070 817,895 894,785 1,081,549
Parks and recreation 1,252,089 1,305,158 1,422,405 1,288,684
Debt service:
Principal 940,000 980,000 1,150,000 1,190,000
Interest 232,318 227,326 190,890 152,894
Bond issuance costs 47,016 - 3,150 7,462
Capital outlay 1,639,773 2,536,286 1,290,008 3,645,425
Total expenditures 17,856,538 19,471,785 20,484,724 22,038,518
Revenues over (under) expenditures $561,312 ($971,479) $12,575 ($618,103)
Other financing sources (uses):
Bonds issued 1,280,000 - - -
Premium/(discount) on bonds issue - - - -
Proceeds from sale of capital assets 63,445 35,679 36,836 93,670
Transfers in 350,000 250,000 8,253,616 1,065,410
Transfers out - (125,000) (7,462,485) (726,810)
Total other financing sources (uses) 1,693,445 160,679 827,967 432,270
Net change in fund balance $2,254,757 ($810,800) $840,542 ($185,833)
Debt service as a percentage of
noncapital expenditures 7.2% 6.8% 7.0% 7.3%
Debt service as percentage of total expenditures 6.8% 6.2% 6.6% 6.1%
CITY OF FRIDLEY, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
168
Table 4
2016 2017 2018 2019 2020 2021
$12,244,211 $13,878,204 $14,857,454 $15,337,464 $16,133,737 $16,977,698
865,722 621,621 501,045 467,953 819,347 840,389
1,442,895 1,272,753 1,538,758 1,501,526 1,559,003 1,526,246
7,330,338 4,227,709 3,035,084 4,446,430 8,111,582 3,888,549
2,592,665 2,560,831 2,863,220 2,958,748 2,795,287 3,230,503
212,635 267,989 263,632 186,807 169,156 151,219
254,379 413,165 651,609 811,009 898,347 (164,818)
- - - - 108,000 98,579
887,678 766,059 374,415 2,178,614 1,232,731 1,392,806
$25,830,523 $24,008,331 $24,085,217 $27,888,551 $31,827,190 $27,941,171
3,924,877 3,953,025 3,659,534 4,677,076 5,177,833 5,023,569
7,537,051 8,001,032 8,317,478 8,831,505 8,924,373 9,761,947
2,824,319 3,468,102 3,316,912 3,535,263 3,222,623 3,451,877
942,768 934,074 909,481 982,166 15,999,027 1,073,651
1,341,444 1,417,611 1,557,052 1,244,351 1,175,270 1,438,269
1,230,000 1,730,000 1,390,000 1,495,000 1,540,000 2,070,000
112,421 931,527 1,761,843 1,721,308 1,958,725 2,106,674
2,700 715,461 2,800 155,218 62,855 -
8,618,369 22,577,062 31,660,699 2,721,649 4,412,516 1,269,626
26,533,949 43,727,894 52,575,799 25,363,536 42,473,222 26,195,613
($703,426) ($19,719,563) ($28,490,582) $2,525,015 ($10,646,032) $1,745,558
- 49,130,000 - 9,510,000 4,540,000 -
- 1,584,898 - 504,837 619,659 -
43,673 69,784 65,085 14,724 21,429 129,604
2,047,849 1,361,189 7,795,728 2,819,740 338,500 338,500
(1,909,349) (1,022,689) (7,457,228) (2,481,240)(80,996) -
182,173 51,123,182 403,585 10,368,061 5,438,592 468,104
($521,253) $31,403,619 ($28,086,997) $12,893,076 ($5,207,440) $2,213,662
7.5%13.0%15.1%14.3%9.2%16.8%
5.1%6.1%6.0%12.7%8.2%15.9%
169
Commercial/
Fiscal Residential Industrial Public All
Year Property Property Utility Other
2012 1 $10,246,614 $14,710,926 $40,330 $4,271,859
2013 1 8,713,053 13,207,351 45,306 4,286,829
2014 1 7,885,298 12,520,981 44,648 4,362,496
2015 1 9,538,484 12,771,829 49,868 4,737,031
2016 1 9,488,686 13,688,867 58,699 4,958,693
2017 1 10,488,279 15,061,056 59,759 5,564,751
2018 1 11,639,971 15,097,292 62,282 5,961,619
2019 1 18,645,518 16,935,599 69,652 1,189,818
2020 1 20,305,713 18,228,064 52,061 1,200,626
2021 23,149,590 19,713,466 62,485 1,415,212
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.
CITY OF FRIDLEY, MINNESOTA
TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY
Last ten fiscal years
2 Property values are determined on January 2 of the preceeding year.
170
Table 5
Add: Less:
Total for Area-wide Fiscal Adjusted Total Estimated Tax Capacity
Tax Values and Disparity Tax Capacity Direct Tax Market as a Percent
Capacity Increment Contribution Value Rate
Value 2 of EMV
$29,269,729 $2,851,459 $5,629,374 $26,491,814 39.615% 2,278,659,000$ 110.49%
26,252,539 2,844,689 5,373,202 23,724,026 47.362% 2,057,500,500 110.66%
24,813,423 2,799,171 4,509,587 23,103,007 48.577% 1,948,580,100 107.40%
27,097,212 2,934,045 4,358,570 25,672,687 43.508% 2,146,063,300 105.55%
28,194,945 2,986,838 4,681,350 26,500,433 44.960% 2,207,363,400 106.39%
31,173,845 2,946,266 5,225,764 28,894,347 48.218% 2,416,338,500 107.89%
32,761,164 2,918,699 5,571,692 30,108,171 47.907% 2,557,662,900 108.81%
36,840,587 3,230,754 5,830,355 34,240,986 45.380% 2,854,939,900 107.59%
39,786,464 3,841,599 6,520,022 37,108,041 45.253% 3,073,484,500 107.22%
44,340,753 5,047,146 7,707,520 41,680,379 44.941% 3,427,584,200 106.38%
171
School School School
Fiscal District District District
Year City No. 11 No. 13 No. 14
2012 39.615%23.325%24.024%43.862%
2013 47.362%26.801%27.449%50.112%
2014 48.577%28.265%24.824%49.552%
2015 43.508%22.482%32.562%48.422%
2016 44.960%20.885%29.442%54.252%
2017 48.218%18.590%27.633%49.408%
2018 47.907%18.392%27.900%51.006%
2019 45.380%16.330%33.148%49.055%
2020 45.253%16.948%23.385%46.213%
2021 44.941%16.152%28.771%44.306%
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.
CITY OF FRIDLEY, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES
Last ten fiscal years
172
Table 6
Special Special
School Districts Districts School School School School
District with with District District District District
No. 16(1)County Coon Creek Rice Creek
No. 11(1)No. 13(2)No. 14(2)No. 16(2)
39.443% 41.146% 10.176% N/A 111.953% 114.961% 134.799% 130.380%
44.440% 44.411% 9.448% N/A 128.022% 129.850% 152.513% 146.841%
44.562% 43.239% 9.559% 10.296% 129.640% 126.936% 151.664% 146.674%
40.045% 38.123% 8.591% 9.079% 112.704% 123.272% 139.132% 130.755%
39.609% 38.894% 9.688% 9.622% 114.427% 122.918% 147.728% 133.085%
40.229% 36.841% 6.758% 7.200% 110.407% 119.892% 141.667% 132.488%
39.617% 37.792% 6.892% 7.282% 110.983% 120.881% 143.987% 132.598%
37.632% 34.473% 6.265% 6.699% 102.448% 119.700% 135.607% 124.184%
35.452% 33.440% 6.120% 6.642% 101.761% 108.720% 131.548% 120.787%
33.110% 32.885% 4.354% 4.876% 98.332% 111.473% 127.008% 115.812%
Total Tax Capacity Rates By School Districts
173
Table 7
2021
Percentage Percentage
Taxable of Total City Taxable of Total City
Capacity Capacity Capacity Capacity
Taxpayer Value Rank Value Value Rank Value
Medtronic, Inc.$1,949,998 1 4.40% $1,849,758 1 6.32%
Hyde Development 1,765,156 2 3.98% N/A
Industrial Equities Group 804,794 3 1.82% N/A
Onan Corp (Cummins Power)747,964 4 1.69% 377,712 4 1.29%
Target Corporation 703,972 5 1.59% 601,452 2 2.05%
BNSF Railroad 673,568 6 1.52% N/A
Fridley Medical Clinic 597,430 7 1.35% N/A
Shamrock Investments 478,246 8 1.08% 585,764 3 2.00%
Cielo Partners LLC 473,485 9 1.07% N/A
University Avenue Associates 414,373 10 240,338 8 0.82%
Wal-Mart/Sam's Club N/A 363,322 5 1.24%
Georgetown Apartments N/A 246,498 7 0.84%
GPT Fridley / BAE N/A 299,936 6 1.02%
River Pointe Apartments N/A 188,981 9 0.65%
ZCOF (Fridley Market)N/A N/A
Lifetime Fitness N/A 201,156 10 0.69%
Total $8,608,986 18.50% $4,954,917 16.92%
Total All Property $44,340,753 $29,269,729
Source: City Assessor
CITY OF FRIDLEY, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS
Current year and nine years ago
2012
174
Table 8
Fiscal Taxes Collections
Year Levied in
Ended For The Percentage Subsequent Percentage
Dec. 31 Fiscal Year Amount of Levy
Years1 Amount of Levy
2012 $10,703,739 $10,699,025 99.96% $4,714 $10,703,739 100.00%
2013 11,252,481 11,247,943 99.96% 4,538 11,252,481 100.00%
2014 11,511,288 11,372,812 98.80% 137,539 11,510,351 99.99%
2015 11,734,607 11,657,855 99.35% 75,335 11,733,190 99.99%
2016 12,200,835 12,172,555 99.77% 25,383 12,197,938 99.98%
2017 14,122,251 13,990,154 99.06% 124,808 14,114,962 99.95%
2018 14,807,913 14,804,501 99.98% (5,939) 14,798,562 99.94%
2019 15,494,419 15,339,721 99.00% 101,240 15,440,961 99.65%
2020 16,109,557 16,030,087 99.51% 28,580 16,058,667 99.68%
2021 16,890,084 16,834,247 99.67% N/A 16,834,247 99.67%
1Includes repayment of property taxes abatements
Source: City Finance Department
CITY OF FRIDLEY, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last ten fiscal years
Collected Within The
Fiscal Year of the Levy Total Collections to Date
175
Table 9
CITY OF FRIDLEY, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten fiscal years
Business
Type
Activities
Total Percentage
Fiscal Improvement Tax Increment Equipment Revenue Primary of Personal Per
Year Bonds 2 Bonds 2 Certificates 2 Total Bonds 2 Government Income1 Capita1
2012 $5,880,000 $ - $1,780,000 $7,660,000 $7,070,000 $14,730,000 1.96% 278
2013 4,955,000 - 1,725,000 6,680,000 6,413,154 13,093,154 1.69% 240
2014 4,000,000 - 1,530,000 5,530,000 5,845,000 11,375,000 1.58% 198
2015 3,010,000 - 1,330,000 4,340,000 5,260,000 9,600,000 1.31% 152
2016 1,980,000 - 1,130,000 3,110,000 10,811,935 13,921,935 1.69% 109
2017 51,111,785 - 925,000 52,036,785 8,200,461 60,237,246 7.25% 1,815
2018 49,863,389 - 720,000 50,583,389 7,273,987 57,857,376 6.74% 1,755
2019 49,019,830 9,510,000 510,000 59,039,830 6,317,180 65,357,010 7.28% 2,010
2020 47,126,597 15,048,975 295,000 62,470,572 5,575,343 68,045,915 7.01% 2,010
2021 45,768,201 14,282,043 150,000 60,200,244 3,688,506 63,888,750 6.51% 2,020
1Demographic information can be found on Table 13
2 Presented as gross amount of debt, not adjusted for original issuance premiums and discounts
Governmental Activities
176
Table 10
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable1 Debt
Debt repaid with property taxes:
Independent School District No. 11 $251,620,000 1.60% $4,025,920
Independent School District No. 13 20,718,058 31.46% 6,517,901
Independent School District No. 14 44,985,000 100.00% 44,985,000
Independent School District No. 16 106,060,000 36.80% 39,030,080
Metro Council 1,796,428,968 1.19% 21,377,505
Anoka County 50,555,000 18.04% 9,120,122
Vocational/Technical District No. 916 73,470,000 2.21% 1,623,687
Subtotal - overlapping debt 126,680,215
City of Fridley - Direct debt 60,200,244
Total direct and overlapping debt $60,200,244 100.00% $186,880,459
Sources: Continuing Disclosure Document
1Overlapping 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.
CITY OF FRIDLEY, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2021
177
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178
Table 11
Market Value $3,427,584,200
Debt Limit 3% of Market Value $102,827,526
Amount of Debt Applicable to Debt Limit:
Total Debt $61,645,000
Deductions:
Revenue Bonds 3,580,000 3,580,000
Total Amount of Debt Applicable to Debt Limit 58,065,000
Legal Debt Margin $44,762,526
Legal Debt Margin Calculation for the last 10 Fiscal Years
Net Debt Legal Amount of Debt
Fiscal Debt Applicable to Debt Applicable to
Year Limit Limit Margin Debt Limit
2012 $68,359,770 $1,780,000 $66,579,770 2.60%
2013 61,725,015 1,725,000 60,000,015 2.79%
2014 58,457,403 1,530,000 56,927,403 2.62%
2015 64,381,899 1,330,000 63,051,899 2.07%
2016 66,220,902 1,130,000 65,090,902 1.71%
2017 72,490,155 50,055,000 22,435,155 69.05%
2018 76,729,887 48,790,000 27,939,887 63.59%
2019 85,648,197 56,935,000 28,713,197 66.48%
2020 92,204,535 60,070,000 32,134,535 65.15%
2021 102,827,526 58,065,000 44,762,526 56.47%
CITY OF FRIDLEY, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
Last ten fiscal years
179
Special Property
Fiscal Assessment Tax
Year Collections Principal Interest Coverage Collections Principal Interest Coverage
2012 $659,666 $890,000 $229,503 0.59 $70,668 $50,000 $13,450 1.11
2013 376,026 925,000 198,413 0.33 233,749 55,000 25,763 2.89
2014 932,078 955,000 166,235 0.83 234,357 195,000 25,653 1.06
2015 188,303 990,000 129,815 0.17 231,310 200,000 23,080 1.04
2016 166,895 1,030,000 92,090 0.15 234,359 200,000 20,330 1.06
2017 105,827 1,525,000 914,322 0.04 225,962 205,000 17,205 1.02
2018 52,979 1,185,000 1,747,988 0.02 232,848 205,000 13,855 1.06
2019 48,680 1,285,000 1,710,938 0.02 231,149 210,000 10,371 1.05
2020 25,154 1,325,000 1,671,788 0.01 157,817 215,000 6,570 0.71
2021 10,336 1,295,000 1,638,638 0.00 160,511 145,000 3,526 1.08
Last ten fiscal years
PLEDGED-REVENUE COVERAGE
CITY OF FRIDLEY, MINNESOTA
Debt Service Debt Service
Improvement Bonds Equipment Certificates
180
Table 12
Utility Less Net Tax
Service Operating Available Increment
Revenues Expenses Revenue Principal Interest Coverage Collections Principal Interest Coverage
$7,864,406 $6,341,544 $1,522,862 $555,000 $255,054 1.88 $0 $0 $0 0.00
7,961,738 6,839,852 1,121,886 655,000 235,474 1.26 - - - -
8,363,415 6,987,095 1,376,320 570,000 223,459 1.73 - - - -
8,936,287 7,405,596 1,530,691 585,000 203,060 1.94 - - - -
9,938,517 7,381,382 2,557,135 610,000 181,610 3.23 - - - -
10,499,230 8,374,461 2,124,769 2,600,000 261,888 0.74 - - - -
11,442,218 9,307,210 2,135,008 915,000 180,688 1.95 - - - -
11,365,473 9,608,209 1,757,264 945,000 155,763 1.60 - - - -
11,603,610 9,812,423 1,791,187 730,000 134,838 2.07 - - 280,368 -
12,592,252 9,681,907 2,910,345 1,875,000 131,838 1.45 - 630,000 460,038 -
Tax Increment Bonds
Debt Service Debt Service
Utility Revenue Bonds
181
Table 13
Total Per Capita
Fiscal Unemployment Personal Personal
Year Population Rate Income Income
2012 27,591 5.6%749,702,652 27,172
2013 27,785 4.4%774,145,670 27,862
2014 27,952 4.2%720,406,896 25,773
2015 28,547 3.9%747,503,195 26,185
2016 28,631 3.9%810,142,776 28,296
2017 28,715 3.8%831,012,100 28,940
2018 28,703 3.1%858,765,057 29,919
2019 28,981 3.3%897,599,532 30,972
2020 29,924 7.5%971,033,800 32,450
2021 29,806 5.0%981,899,058 32,943
Sources: Metropolitan Council (population), Continuing Disclosure Document (unemployment rate)
CITY OF FRIDLEY, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last ten fiscal years
182
Table 14
2021 2012
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment
Medtronic, Inc.3,366 1 15.09% 2,758 1 12.34%
Target 1,301 2 5.83% 842 4 3.77%
Unity Medical Center 1,215 3 5.45% 1,037 3 4.64%
Cummins Power (Onan)1,099 4 4.93% 1,700 2 7.61%
Minco Products 592 5 2.65% 517 5 2.31%
ISD #14 (Fridley Schools)564 6 2.53% 475 6 2.13%
BAE Systems 550 7 2.47% 350 7 1.57%
Kurt Manufacturing 275 8 1.23% 230 9 1.03%
Taylor Communications 250 9 1.12% N/A N/A
Wal-Mart 212 10 0.95% 294 8 1.32%
Park Construction N/A N/A N/A N/A
Lofthouse Bakery N/A N/A 215 10 0.96%
Parsons Electric N/A N/A N/A N/A
Total 9,424 42.25% 8,418 37.67%
Total City Employment 22,305 22,345
Source: Fridley Community Development Dept, MN Department of Employment and Economic Development
CITY OF FRIDLEY, MINNESOTA
PRINCIPAL EMPLOYERS
Current year and nine years ago
183
Function/Program 2012 2013 1 2014 1 2015 1
General government:
City administration 3.0 4.0 4.7 4.7
Finance 20.0 18.0 16.0 16.0
Human resource 2.0 2.0 2.0 2.0
Community development 7.0 8.2 9.8 9.6
Customer Relations - - - -
Public safety:
Police department 44.0 50.6 51.6 52.6
Fire department 8.0 7.8 7.6 7.0
Public works:
Administration 2.0 1.2 0.6 1.5
Engineering 3.0 5.0 5.0 1.8
Mechanic 3.0 4.5 4.0 3.8
Streets 9.0 9.0 8.5 8.5
Water 5.0 7.0 7.0 7.8
Sewer 5.0 5.0 5.0 3.7
Parks 7.0 7.0 6.5 5.8
Storm Water - - - 5.1
Parks and recreation:
Parks and recreation 8.0 8.0 9.6 9.0
Total 126.0 137.3 137.9 138.9
Source: City Finance Department
1Prior 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.
Full-Time Equivalent Employees as of December 31,
CITY OF FRIDLEY, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last ten fiscal years
184
Table 15
2016 1 2017 1 2018 1 2019 1 2020 2021
5.0 5.0 5.0 5.0 4.0 5.0
15.0 15.0 16.1 16.9 3.0 3.0
2.0 2.0 2.8 3.0 - -
10.0 10.0 10.0 10.0 17.9 23.5
- - 0.7 1.0 10.0 10.0
52.4 52.4 52.1 54.1 54.9 55.8
7.0 7.0 7.0 6.0 4.9 6.0
1.5 1.8 1.8 2.8 2.8 3.0
1.8 2.1 2.1 2.1 2.1 2.1
3.8 3.8 3.8 3.8 5.8 5.8
8.5 8.8 8.8 8.8 8.9 8.7
7.8 7.9 7.9 7.9 4.0 3.6
3.7 3.7 3.7 3.7 7.9 8.2
5.8 5.8 5.8 5.8 4.6 4.2
5.1 5.1 5.0 5.0 6.7 5.3
9.0 9.8 10.2 9.0 11.7 10.8
138.4 140.0 142.8 144.9 149.1 155.0
Full-Time Equivalent Employees as of December 31,
185
Function/Program 2012 2013 2014 2015
Police:
Physical arrests 1,133 1,344 1,256 1,386
Parking violations 283 562 373 278
Traffic violations 2,590 2,826 3,245 2,592
Fire:
Emergency responses 2,906 3,003 3,089 3,047
Fires occurred 121 119 110 103
Commercial inspections 1,016 1,110 1,505 1,663
Community development:
Rental inspections 1,117 1,145 1,428 1,881
Refuse collection:
Recyclables collected (tons per day)5.81 6.21 6.22 6.33
Recyclables collected (pounds per person)N/A 164.67 164.59 165.96
Building inspection:
Permits issued:
Residential 1,606 2,191 1,974 4,642
Commercial 386 440 492 642
Total permit valuation $35,763,059 $40,697,477 $47,109,811 $60,598,103
Other public works:
Street resurfacing (miles)3.1 3.8 3.3 2.9
Recreation
Total Program Participant hours 302,500 305,975 310,000 311,500
Total Senior Program Participant hours 68,700 69,818 70,000 62,218
Nature Center Education Participants 24,266 23,419 23,860 20,404
Nature Center Special Event Participants N/A N/A N/A N/A
Nature Center Facility Rental Visitors N/A N/A N/A N/A
Water:
Connections 8,227 8,230 8,243 8,245
Storage capacity (gallons)6,500,000 6,500,000 6,500,000 6,500,000
Average daily demand (gallons)3,993,285 4,227,975 2,517,808 2,968,901
Peak daily demand (gallons)8,661,000 9,009,000 7,439,000 6,803,000
Sewer:
Connections 8,236 8,239 8,252 8,254
Sources: Various City departments.
Fiscal Year
CITY OF FRIDLEY, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last ten fiscal years
186
Table 16
2016 2017 2018 2019 2020 2021
752 979 1,043 911 761 1,247
922 553 612 1,741 671 841
2,601 2,250 2,622 1,932 1,883 1,395
3,268 3,439 2,415 2,596 3,342 3,003
127 126 126 105 123 159
789 867 829 1,672 862 397
1,559 1,434 1,410 1,643 1,260 1,374
5.99 6.62 6.20 6.37 6.57 5.79
156.54 169.25 158.29 162.28 163.28 142.72
2,227 1,804 2,007 2,093 2,329 2,278
599 612 514 453 378 430
$73,636,057 $103,663,306 $91,601,072 $98,100,786 $99,191,402 $87,575,510
2.2 1.9 0.2 0.6 3.6 2.2
315,000 300,000 321,927 318,000 6,892 50,765
65,500 65,500 21,615 N/A N/A N/A
15,609 16,339 16,872 15,587 3,785 10,581
4,751 2,670 4,200 3,700 145 3,528
N/A 5,364 5,500 4,456 1,059 1,419
8,374 8,259 8,261 8,305 8,343 8,362
6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000
3,560,000 3,390,000 3,233,000 3,056,000 3,370,000 3,480,000
6,392,000 6,379,000 5,900,000 5,720,000 6,458,000 7,345,000
8,271 8,235 8,239 8,291 8,326 8,344
Fiscal Year
187
Table 17
Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police:
Stations 1111111111
Squad cars 12 12 15 13 13 12 15 15 15 15
Fire stations 3333333222
Other public works:
Streets (miles)125.3 125.3 125.3 125.5 125.5 125.5 125.8 126.1 126.1 126.1
Highways (miles)10.3 10.3 10.3 10.3 10.3 10.3 10.3 10.3 10.3 10.3
Streetlights 1,059 1,059 1,059 1,059 1,059 1,059 1,059 1,093 1,123 1,123
Traffic signals 36 36 36 36 36 36 36 36 36 36
Parks and recreation:
Acreage 682 682 682 682 682 682 665 665 666 666
Playgrounds 29 29 29 29 29 29 28 28 29 29
Baseball/softball diamonds 22 22 22 22 22 21 21 21 21 21
Soccer/football fields 2222222222
Water:
Water mains (miles)113.0 113.0 113.0 113.2 113.2 113.2 116.0 117.5 127.0 127.8
Fire hydrants 1,013 1,013 1,013 1,013 1,013 1,013 1,050 1,064 1,040 1,070
Storage capacity (million gallons) 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5
Wastewater:
Sanitary sewers (miles)103.0 103.0 103.0 103.0 103.0 103.0 106.0 107.5 109.0 109.0
Storm sewers (miles)52.0 52.0 52.0 52.0 52.2 52.2 54.5 57.0 115.5 115.5
Sources: Various City departments.
Fiscal Year
CITY OF FRIDLEY, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last ten fiscal years
188