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5.1. SR 05-14-2001io t� EICK & _ MEYE1 W LLP Certified Public Accountants & Consultants 7241 Ohms Lane Suite 200 Minneapolis, MN 55439 Members of the City Council City of Elk River, Minnesota March 15, 2001 We have audited the general purpose financial statements of the City of Elk River for the year ended December 31, 2000 and have issued our report thereon dated March 15, 2001. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under U.S. Generally Accepted Auditing Standards and Government Auditing Standards As stated in our engagement letter, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable - but not absolute - assurance that the financial statements are free of material misstatement and are fairly presented in accordance with U.S. generally accepted accounting principles. Because of the concept of reasonable assurance and because we did not perform a detailed examination of all transactions, there is a risk that material errors, fraud, or other illegal acts may exist and not be detected by us. As part of our audit, we considered the internal control of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. However, we noted certain matters involving internal control and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of internal control that, in our judgment, could adversely affect the City's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that errors or irregularities in a amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of internal control would not necessarily disclose all matters in internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be a material weakness, as defined above. However, we noted the following reportable condition that we believe is not a material weakness. Segregation of Duties Our study and evaluation disclosed that because of the limited size of your office staff, your organization has limited segregation of duties. Good internal control contemplates an adequate segregation of duties so that no one individual handles a transaction from inception to completion. The City has procedures in place to ensure that there is segregation whenever possible. Monitoring is also done by the Finance Director to provide assurance that the systems used are functioning as intended, but the fact that the City has a limited staff, prevents full segregation of accounting functions. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of compliance with certain provisions of laws, regulations, contracts and grants. However, the objective of our tests was not to provide an opinion on compliance with such provisions. We noted one instance of noncompliance with Federal regulations relating to the Highway Planning and Construction Grant. It is reported as fmding 2000-2 in the Schedule of Findings and Questioned Costs in the Federal Financial Award Program Report. The finding related to the City requesting more than allowable with one pay request. It is a relative minor finding and will be corrected with next pay request. 612.835.9090 • Fax 612.835.3261 City of Elk River March 15, 2001 Page Two Significant Accounting Policies Management has the responsibility for selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the City are described in Note 1 to the general purpose financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2000. We noted no transactions entered into by the City during the year that were both significant and unusual, and of which - under professional standards - we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. Accounting Estimates Accounting estimates are an integral part of the general purpose financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the general-purpose financial statements and because of the possibility that future events affecting them may differ significantly from those expected. Significant Audit Adjustments For purposes of this letter, professional standards define a significant audit adjustment as a proposed correction of the general- purpose financial statements that, in our judgment, may not have been detected except through our auditing procedures. We proposed no audit adjustments. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting or auditing matter that could be significant to the general-purpose financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's general purpose financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Issues Discussed Prior to Retention of Independent Auditors We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing our audit. City of Elk River March 15, 2001 Page Three Other Matters Financial Position and Results of Operations General Fund Fund balance increased $382,732 from 1999 and totaled $2,695,612 at December 31, 2000. Overall, the revenue was $171,621 or 2.9% above budget. Expenditures were under budget. The total was $72,248 or 1.2%. The fund balance history is included in the introductory section of the Annual Financial Report. The information is also summarized here for the previous five years. The City has maintained fund balance at consistent levels over the last five years. We typically recommend that a City maintain its fund balance at a level that provides cash flow for the first six months of the year. Usually a reserve of 35 to 45% of planned expenditures is adequate to meet the cash flow needs in the first six months. The City has stayed within that range each of the last five years. 2000 1999 1998 1997 1996 Fund Balance to Budget $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 Dollars expressed in thousands ■ Budget ■ Fund Balance Percent Adopted of Fund Fund Balance Budget General Balance Year December 31, Year Fund Budget to Budget 1996 $ 1,609,394 1997 $ 4,535,850 35.48% 1997 1,973,208 1998 4,905,250 40.23 1998 1,973,208 1999 5,363,450 36.79 1999 2,312,880 2000 5,862,500 39.45 2000 2,695,612 2001 6,470,000 41.66 Fund Balance to Budget $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 Dollars expressed in thousands ■ Budget ■ Fund Balance City of Elk River March 15, 2001 Page Four It is important to maintain an adequate fund balance for the following reasons: • Expenditures are incurred somewhat evenly throughout the year. However, property tax and state aid revenues are not received until the second half of the year. An adequate fund balance will provide the cash flow required to finance the General Fund expenditures. • The City is vulnerable to legislative actions at the State and Federal level. The State continually adjusts the local government aid and property tax credit formulas and also has implemented levy limits. An adequate fund balance will provide a temporary buffer against those aid adjustments and the effects of levy limits. Over 70 percent of the General Fund revenue is from property taxes, property tax credits and local government aid. • Expenditures not anticipated at the time the annual budget was adopted may need immediate Council action. These would include capital outlay replacement, lawsuits and other items. An adequate fund balance will provide the financing needed for such expenditures. • A strong fund balance will assist the City in maintaining or improving its bond rating. A summary of the 2000 operations is as follows: Variance - Favorable Bud eg t Actual (Unfavorable) Revenue $ 5,872,100 $ 6,043,721 $ 171,621 Expenditures 5,877,000 5,804,752 72,248 Excess (Deficiency) of Revenue Over Expenditures (4,900) 238,969 243,869 Other Financing Sources (Uses) Operating transfers in 276,400 276,400 - Operating transfers out (132,637) (132,637) - Total Other Financing Sources (Uses) Excess (Deficiency) of Revenue and Other Financing Sources Over Expenditures and Other Financing Uses Fund Balance, January 1 143,763 143.763 - $ 138.863 382,732 24 69 2,312,880 Fund Balance, December 31 &105fil2 A more detailed comparison of General Fund revenue with the prior year is as follows: The 2000 revenue is graphically presented as follows: Transfers in 4.37% Other 4.74% Licenses and 11.87% 2000 Revenue Taxes 52.04% Charges for services 9.43% uuergovernmental 17.55% City of Elk River March 15, 2001 Page Five Percent Increase of (Decrease) Revenue Source 2000 Total 1999 From 1999 General Property Taxes $ 3,288,976 52.04% $ 3,057,609 $ 231,367 Intergovernmental 1,109,078 17.55 1,104,281 4,797 Charges for Services 596,203 9.43 491,197 105,006 Licenses and Permits 749,888 11.87 511,306 238,582 Fines 119,421 1.89 117,614 1,807 Interest 161,759 2.56 53,578 108,181 Miscellaneous 18,396 .29 23,048 (4,652) Transfers from Other Funds 276,400 4.37 309,800 (33,40 Total Revenue and Transfers 0 12110% $ 5.01433 $$ 6 The 2000 revenue is graphically presented as follows: Transfers in 4.37% Other 4.74% Licenses and 11.87% 2000 Revenue Taxes 52.04% Charges for services 9.43% uuergovernmental 17.55% City of Elk River March 15, 2001 Page Five Expenditures for 2000 compared with 1999 follows: Programs General Government Public Safety Public Works Culture and Recreation Capital Outlay Transfers to Other Funds Total Expenditures The 2000 expenditures are graphically presented as follows: General Governme 21.89% Transfers out 2.23% Culture and Re 9.42% 2000 Expenditures City of Elk River March 15, 2001 Page Six Percent of 2000 Total $ 1,299,473 21.89% 3,077,431 51.83 868,426 14.63 559,422 9.42 - .00 132.637 2.23 100.00% The 2000 expenditures are graphically presented as follows: General Governme 21.89% Transfers out 2.23% Culture and Re 9.42% 2000 Expenditures City of Elk River March 15, 2001 Page Six L5.328.761 Public Works 14.63% iblic Safety 51.83% Increase (Decrease) 1999 From 1999 $ 1,108,135 $ 191,338 2,741,568 335,863 812,637 55,789 499,589 59,833 79,232 (79,232) 87.600 45.037 L5.328.761 Public Works 14.63% iblic Safety 51.83% City of Elk River March 15, 2001 Page Seven 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 or local ordinance to finance particular functions or activities of government. All have positive fund balances and many serve as permanent reserves for a broad group of City needs. The various special revenue funds are described on the divider page in that section of the report. A recap of the individual funds with year end fund balances are as follows: Fund Library Maintenance Ice Arena Senior Citizen Special Account Park Dedication Landfill Landfill Construction Debris Revolving Loan DTED Grant/Loan Development Fund Capital Outlay Reserve Emergency/Insurance Reserve Government Buildings Reserve Street Improvement Drug Forfeiture Reserve Severance Pay Reserve NSP/RDF Reserve Economic Development Authority Total Debt Service Funds Fund Balance Increase 2000 1999 (Decrease) $ 247,373 $ 171,920 $ 75,453 11,745 12,208 (463 ) 746,916 679,410 67,506 1,260,894 956,252 304,642 345,914 203,928 141,986 449,095 369,628 79,467 80,454 43,811 36,643 750,042 699,043 50,999 360,381 312,903 47,478 542,174 502,753 39,421 1,787,178 1,130,454 656,724 1,059,378 782,372 277,006 35,451 46,662 (11,211) 165,089 154,983 10,106 401,245 208,378 192,867 123,639 157,492 (33,853) 8,366.968 $ 6.432,197 1.934,771 Debt service funds are used to account for the payment of principal and interest on bonds and loans. Governmental accounting does not report the outstanding debt as a liability of the fund except for debt paid from enterprise funds. The following is a summary of the assets accumulated in each debt service fund and the related long-term debt at year end. Debt Service Fund Orono Dam Safety Loan 1989 Fire Equipment Bond Government Building Bonds Improvement Bonds Equipment Certificates Tax Increment Financing Bonds PIR Bonds 1994 Storm Sewer Bonds Ice Arena Bonds Total Cash and Total Long-term Investments Assets Debt $ 25,583 $ 29,042 $ 47,087 109,998 115,124 65,000 613,207 616,321 2,295,000 4,468,726 11,963,072 12,900,000 210,760 221,746 547,450 200,413 202,071 1,636,500 223,623 225,473 740,000 18,213 24,909 760,000 1,805,000 $13,397,758 20.796.037 The Tax Increment Bonds will be financed through tax increments collected in future years. The Equipment Certificates are to be financed through future tax levies. Other bonds outstanding will be financed through special assessments or a combination of assessments, taxes and charges for services. City of Elk River March 15, 2001 Page Eight Capital Projects Funds Separate capital projects funds are established as projects are identified. Many of the projects incur preliminary planning, legal, engineering or construction costs previous to funding arriving. Listed below are funds with deficit fund balances at yearend: Fund Fund Deficit East Highway 10 Improvements $ 1,519,409 Tax Increment Financing Districts 345,968 Total 1,865.377 Future revenue sources should eliminate these deficits but it is important to monitor each project's progress and ensure revenue is adequate. Enterprise Funds The activities of the Enterprise Funds include the electric, water, sewer, garbage services and the off -sale liquor store. The electric and water operations, under the direction of the Utilities Commission, are included in the financial statements since City Council has the ultimate oversight responsibility for their operations. Garbage Collection Garbage collections are remitted monthly. The non-operating revenue is made up mainly from a county grant. The net income continues to be positive and the cash balance is adequate for the current level of operations. Percent Percent Percent 2000 of Revenue 1999 of Revenue 1998 of Revenue Operating revenue $ 686,815 100.0% $ 754,804 100.0% $ 718,216 100.0% Operating expenses 791,043 115.2 748,683 99.2 717,400 99.9 Operating income (104,228) (15.2) 6,121 .8 816 .1 Nonoperating revenue 124,571 18.1 116,593 15.4 27,661 3.9 Net income before transfers 2.9% 12 14 16.20 Cash balances 255,671 222 9 0 6 2 City of Elk River March 15, 2001 Page Nine Municipal Liquor All significant areas of operations have showed improvement over the past three years. The current gross profit percentage and operating income percentage are excellent compared with other Cities we see. Sewage Disposal The cash balances and revenue currently appear adequate to fund operations and debt service. The current operating margins are reasonable. The majority of the net income and cash increase results from the significant connection fees collected. The connection fees help fund the expansion and provide resources for repayment of the bonds. Operating revenue Operating expenses Operating income Nonoperating revenue Transfers out Net income Cash balances Bonds payable Percent 2000 of Revenue $ 877,655 100.0% 756,869 86.2 120,786 13.8 637,878 72.7 (20,336) 2.3 738_328 84.2ZQ 13A28 124 1 0 Percent Percent of Revenue Percent 100.0% Percent 86.8 2000 of Sales 1999 of Sales 1998 of Sales Sales $ 3,788,048 100.0% $ 3,478,938 100.0% $ 3,074,852 100.0% Less cost of sales 2,846,326 75.1 2,652,392 76.2 2,383,340 77.5 Gross profit 941,722 24.9 826,546 23.8 691,512 22.5 Operating expenses 451,197 11.9 431,835 12.4 455,045 14.8 Operating income 490,525 13.0 394,711 11.4 236,467 7.7 Nonoperting income 5,977 .1 (47,128) (1.3) 35,014 1.1 Transfers out (146,400) (3.9) (141,250) (4.2) (131,651) (4.3) Net income $ 350,102 9.20 $ 206 333 5.9% $ 139,830 4.5 Cash balances 1,416.935 $ 878,888 $ 691,795 Bonds payable 1.000.000 1.080.000 1.155.000 Sewage Disposal The cash balances and revenue currently appear adequate to fund operations and debt service. The current operating margins are reasonable. The majority of the net income and cash increase results from the significant connection fees collected. The connection fees help fund the expansion and provide resources for repayment of the bonds. Operating revenue Operating expenses Operating income Nonoperating revenue Transfers out Net income Cash balances Bonds payable Percent 2000 of Revenue $ 877,655 100.0% 756,869 86.2 120,786 13.8 637,878 72.7 (20,336) 2.3 738_328 84.2ZQ 13A28 124 1 0 Percent 1999 of Revenue $ 797,101 100.0% 692,018 86.8 105,083 13.2 268,449 33.7 (8,000) 1.0 $ 365.532 45.90 2.634.965 3.355.000 Percent 1998 of Revenue $ 730,294 100.0% 702,774 96.2 27,520 3.8 321,615 44.0 (8,000) 1.1 $ 341,135 46.7% 2.256.923 3.515.000 City of Elk River March 15, 2001 Page Ten The following are areas that came to our attention during the audit that we feel should be reviewed: The results of the Electric and Water Enterprise Funds are as follows: Electric Fund The following table tracks cash balance, unreserved retained earnings and fixed asset additions for the previous five years in the Electric Fund. Percent Cash Outlays Percent of Operating of Electric Fund 2000 Charges 1999 Charges Fixed Asset Charges for services and other revenue $ 9,389,846 100.0% $ 8,902,004 100.0% Operating expenses excluding depreciation 7,456,665 79.4 6,741,394 75.7 Operating income before depreciation 1,933,181 20.6 2,160,610 24.3 Depreciation expense 812,124 8.7 739,411 8.3 1998 Operating income 1.121.057 11 9% 8,502,983 16.0% 1997 513,064 Electric Fund 2000 7,914,485 1999 1996 132,085 Operating cash and investments $ 1,407,906 7,581,164 $ 1,315,004 Restricted cash and investments 781,025 629,690 Total 2,188.931 1.944.694 Electric Fund The following table tracks cash balance, unreserved retained earnings and fixed asset additions for the previous five years in the Electric Fund. The effect of new customers was reflected in a 5.9% increase in charges for services. The operating expenses increased at a higher rate than revenue due to higher purchased power costs, increased repair and maintenance and higher depreciation. The cash position of the electric fund did remain strong relative to these expense increases and still is at a high enough level to meet working capital needs. Management has monitored rates and adjusted them to maintain this cash balance. Cash Outlays Operating Operating Cash as Cash Expenses and Fixed Asset a Percent Balances Debt Service Additions Total of Outlays 2000 $ 1,407,906 $ 8,337,900 $ 1,780,097 $ 10,117,997 13.9% 1999 1,315,004 7,190,828 1,653,043 8,843,871 14.9 1998 800,828 6,903,054 1,599,929 8,502,983 9.4 1997 513,064 6,262,400 1,652,085 7,914,485 6.5 1996 132,085 6,135,178 1,445,986 7,581,164 1.7 The effect of new customers was reflected in a 5.9% increase in charges for services. The operating expenses increased at a higher rate than revenue due to higher purchased power costs, increased repair and maintenance and higher depreciation. The cash position of the electric fund did remain strong relative to these expense increases and still is at a high enough level to meet working capital needs. Management has monitored rates and adjusted them to maintain this cash balance. City of Elk River March 15, 2001 Page Eleven Water Fund The operating cash and investments remained at nearly the same level as the prior year. Total expenses, capital outlay, transfers and debt service totaled $1,456,998 in 2000. The current operating cash represents 90% of those outlays. The cash reserve is adequate to meet the current needs of the water fund. Percent of 1999 Charges $ 627,449 100.0% 325,849 51.9 301,600 48.1 163,423 26.0 $ 138,177 22.1% $ 1,499,657 295,057 $ 1.794.714 $ 2.755.000 Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements — and Management's Discussion and Analysis — for State and Local Governments GASB Statement No. 34 is the result of an almost decade-long effort by GASB to reexamine the financial reporting model for state and local governments. The most.notable change is the presentation of a set of highly aggregated, "full accrual" financial statements. At the same time, however, the Statement retains many familiar features of current governmental financial reporting, in particular fund -based financial statements. State and local governmental financial statement preparers and auditors will need to comprehend and implement a vast number of changes in accounting and financial reporting. They will have to explain those changes to persons who are unfamiliar with the particulars of accounting, much less the unique area of state and local governmental accounting. The following are some specific areas that need to be addressed with the implementation of this new statement: Timeline GASB Statement No. 34 is effective in three phases based on the total annual revenues of the primary government's governmental and proprietary funds, although earlier application is encouraged. The City is considered to be phase 2. Therefore, the City is required to implement GASB Statement No. 34 for the calendar year ending 2003. Management's Discussion and Analysis (MD&A) MD&A gives an objective and easily readable analysis of a government's financial activities based on currently known facts, decisions, or conditions. It presents short- and long-term analyses of the government's activities, compares current -year results with those of the prior year, and discusses the positive and negative aspects of that comparison. Percent of Water Fund 2000 Charges Charges for services $ 755,462 100.0% Operating expenses excluding depreciation 429,776 56.9 Operating income before depreciation 325,686 43.1 Depreciation expense 185,266 24.5 Operating income 140 42 18.6% Operating cash and investments $ 1,393,254 Construction reserve cash 429,739 Total cash and investments 1.822.993 Bonds Payable2.570.000 Percent of 1999 Charges $ 627,449 100.0% 325,849 51.9 301,600 48.1 163,423 26.0 $ 138,177 22.1% $ 1,499,657 295,057 $ 1.794.714 $ 2.755.000 Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements — and Management's Discussion and Analysis — for State and Local Governments GASB Statement No. 34 is the result of an almost decade-long effort by GASB to reexamine the financial reporting model for state and local governments. The most.notable change is the presentation of a set of highly aggregated, "full accrual" financial statements. At the same time, however, the Statement retains many familiar features of current governmental financial reporting, in particular fund -based financial statements. State and local governmental financial statement preparers and auditors will need to comprehend and implement a vast number of changes in accounting and financial reporting. They will have to explain those changes to persons who are unfamiliar with the particulars of accounting, much less the unique area of state and local governmental accounting. The following are some specific areas that need to be addressed with the implementation of this new statement: Timeline GASB Statement No. 34 is effective in three phases based on the total annual revenues of the primary government's governmental and proprietary funds, although earlier application is encouraged. The City is considered to be phase 2. Therefore, the City is required to implement GASB Statement No. 34 for the calendar year ending 2003. Management's Discussion and Analysis (MD&A) MD&A gives an objective and easily readable analysis of a government's financial activities based on currently known facts, decisions, or conditions. It presents short- and long-term analyses of the government's activities, compares current -year results with those of the prior year, and discusses the positive and negative aspects of that comparison. City of Elk River March 15, 2001 Page Twelve Government -wide Financial Statements The government -wide financial statements are (1) a statement of net assets and (2) a statement of activities. The statement of net assets presents the government's financial position at a point in time (like a balance sheet does); the statement of activities presents its activities during a period (like an operating statement does). These statements present highly aggregated information for the overall government; they do not display individual funds or fund types. They also present financial information in separate rows and columns for the (1) primary government's aggregate governmental activities, (2) primary government's aggregate business -type activities, (3) total primary government, and (4) discretely presented component units. Capital Assets Capital assets are tangible and intangible assets that are used in operations that have initial useful lives longer than one year. They include land and improvements, easements, buildings and improvements, equipment, and works of art and historical treasures. Capital assets also include infrastructure assets — normally stationary capital assets that can be preserved for significantly greater number of years than most capital assets. Infrastructure assets include roads, bridges and tunnels; water, sewer and drainage systems; dams; lighting systems; and buildings that are an ancillary part of a network of infrastructure assets. Capital assets are reported in the statement of net assets at historical cost (or estimated fair value, if donated) and net of accumulated depreciation. They are depreciated in the statement of activities over their estimated useful lives. Infrastructure Assets GASB Statement No. 34 applies prospectively to all general infrastructure assets beginning at the effective dates of the Statement (or earlier, if the statement is implemented earlier). Governments are also encouraged to apply the Statement retroactively to all existing major general infrastructure assets at that time. However, phase 1,2 governments need not retroactively report those assets until calendar year 2006, 2007 — four years after their required implementation of Statement No. 34. Phase 3 governments are encouraged but not required to report major general infrastructure assets retroactively. If there are inadequate records of the actual historical cost of existing general infrastructure assets, governments can estimate historical cost. They also may limit retroactive application to only those major general infrastructure assets that were acquired or significantly reconstructed, or that received significant improvements, in fiscal years ending after June 30, 1980. The City has already begun work on some of the implementation specifics and will be working on infrastructure records this summer. The finance department has done a good job in identifying what is needed for implementation and then completing projects to achieve it. This will ensure that the City will be ready for full implementation upon the deadline if not before. Status of Prior Year Recommendations Prior Year Comment Community Recreation Billing Currently, the community recreation program that the City participates in does not provide any support for their reimbursement requests. The City only receives a spreadsheet with the reimbursement amount on it. Since this program is operated outside of the City offices, it would be appropriate to require more documentation with their requests for payment. Current Status This item has been corrected and the City is receiving adequate documentation. City of Elk River March 15, 2001 Page Thirteen This report is intended solely for the use of management and Council. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation extended to us by your staff. March 15, 2001 Minneapolis, Minnesota ABDO, EICK & MEY S, LLP Certified Public Accountants DECEMBER 31, 2000 Patrick Ktaers, City Administrator . . r r i glijagelmouggilglil ... rr IR. ♦ i a.. CITY OF ELK RIVER, MINNESOTA TABLE OF CONTENTS DECEMBER 31, 2000 Exhibit/ Table Page No. INTRODUCTORY SECTION Elected and Appointed Officials ................................................ i Organizational Chart ................................................................. ii Letter of Transmittal from Finance Director .............................. iii-xiv Certificate of Achievement for Excellence in Financial Reporting................................................................ xv FINANCIAL SECTION Independent Auditor's Report. .......... .................. .................... 1 General Puroose Financial Statements Combined Balance Sheet - All Fund Types, Account Groups and Discretely Presented Component Unit.,... 1 2-3 Combined Statement of Revenue, Expenditures, and Combining Balance Sheet.. ....... .. ......... Changes in Fund Balance - All Governmental Fund 40-43 Types and Discretely Presented Component Unit....... 2 4-5 Combined Statement of Revenue, Expenditures, and and Changes in Fund Balance ................................... Changes in Fund Balance - Budget and Actual - 44-47 General and Budgeted Special Revenue Funds........ 3 6-7 Combined Statement of Revenue, Expenditures, and in Fund Balance - Budget and Actual Changes in Retained Earnings - All Proprietary FundTypes................................................................ 4 8 Combined Statement of Cash Flows - All Proprietary Ice Arena Fund.... ...................... ........... - ... ......... ...... FundTypes................................................................. 5 9 Notes to Financial Statements .......................................... 19-33 CombiningmarGd Indiv�duaUFund and Account Group Financial Statements and Schedules General Fund Comparative Balance Sheets ........ ......... ................... A-1 34 Statement of Revenue, Expenditures, and Changes in Fund Balance - Budget and Actual... ..... ................ A-2 35-39 Special Revenue Funds Combining Balance Sheet.. ....... .. ......... B-1 40-43 Combining Statement of Revenue, Expenditures, and Changes in Fund Balance ................................... B-2 44-47 Statement of Revenue, Expenditures, and Changes in Fund Balance - Budget and Actual Library Maintenance Fund... ............ ......... ................ B-3 48 Ice Arena Fund.... ...................... ........... - ... ......... ...... B-4 49 Landfill Fund... ....... .................... B-5 50 Economic Development Authority Fund ......... ......... B-6 51 CITY OFELK RIVER, MINNESOTA TABLE (}FCONTENTS DECEMBER 31.2OQO Electric Fund Comparative Balance Sheets ... —....... ........ ............. E-16 82-83 Comparative Statements ofRevenue, Expenses, and Changes inRetained Earnings .......... .............. E-17 84 Exhibit/ �Tablle Debt Service Funds Combining Balance Sheet ................. ........... —...... ..... C-1 52-53 Combining Statement ofRevenue, Expenditures, and Changes in Fund Ba|ance_--.... ------.... C-2 54-55 Capital Projects Funds Combining Balance Sheet.... D-1 56'57 Combining Statement mfRevenue, Expenditures, and Changes inFund Balance ----......... --.... O-2 58-59 Enterprise Funds Combining Balance Sheet .—......................................... E-1 80-63 Combining Statement ufRevenue, Expenses, and Changes in Retained Eonningn...... .... ... ........... E-2 84'65 Combining Statement ofCash Flows---------' E-3 08'69 Garbage Collection Fund Comparative Balance 8heeta............. ...................... E-4 70 Comparative Statements ofRevenue, Expenses, amdChangesinReteimedEamminga—------- E-5 71 Comparative Statements ofCash Fkmva------- E-8 72 Municipal Liquor Fund Comparative Balance Sheets.. .................... E-7 73 Comparative Statements ufRevenue, Expenses, and Changes in Retained Egrninge_.... ... ............ E-9 74 Comparative Statements ofCash F|ows------- E -S 75 Sewage Disposal Fund Comparative Balance Sheets-- ..... .......... —.......... E-10 76 Comparative Statements ofRevenue, Expenses, andChangesinRetainedEarmingn—--_----' E-11 77 Comparative Statements of Cash F|oxvs---_---. E-12 78 Water Fund Comparative Balance Sheets ........... .......................... E-13 79 Comparative Statements mfRevenues, Expenses, amdChamQesinRetainedEannings--—_----' E-14 80 Comparative Statements of Cash Flows .... ........ E-1 5 81 Electric Fund Comparative Balance Sheets ... —....... ........ ............. E-16 82-83 Comparative Statements ofRevenue, Expenses, and Changes inRetained Earnings .......... .............. E-17 84 CITY 0FELK RIVER, MINNESOTA TABLE {}FCONTENTS DECEMBER 31.2OOQ Exhibit/ _Table' Page No. Agency Funds Combining Statements ofChanges inAssets and General Fixed Assets Account Group Schedule ofGeneral Fixed Assets - by 8ource...... ..... G-1 87 Schedule of General Fixed Assets - by Funotiom—....... G-2 88 Schedule ofChanges inGeneral Fixed Assets - bvFmnctiom_.................... ........ ..... .... ....... ...... G-3 89 General Long-term Debt Account Gmu Statement ofGeneral Long-term Debt —_—............ _ H'1 98 Schedule ofBonds Payable ... _...... ................... ........... H-2 91-92 Schedule nfDebt Service Requirements on Bonds Payabks---..... ........ --------_................... H-3 93 Ui STATISTICAL SECTION General Governmental Expenditures and Other Uses bvFunction ............. ......... —.................... ...... ...... ......... 1 94 General Fund Expendituresand Other Uses by Function. ... 2 85 General Governmental Revenues and Other Financing Sources bvSource ..... -------_--........................ 3 90 General Fund Revenues and Other Financing Sources bv Source......... --........ .......... .............. ......... --....... -' 4 97 PrnpertyTaxLeviesandCokeotions------'—. 5, 98 Assessed Valuation, Tax Levies, and Mill Rates ... ............. O 98-108 Property Tax Mill Rates/Tax Capacity Rates - All Overlapping Governments - Direct and Overlapping Governments ...... .............. ... __ .... __ ........ 7 101 Principal Taxpayers. ........... ......... ...... --....... ..... ......... 8 102 Special Assessment Levies and Collections .................. ...... 9 103 Computation of Legal Debt Margin ...... ...... .... ..... ..... ..... 10 104 Ratio of Net Bonded Debt toAssessed Value and Net Bonded Debt per Capita ...... _—...... ..... ...... --' 11 105 Ratio ofAnnual Debt Service Expenditures for General BondedDebttoTotaUGemeraUExpendhures----—--- 12 106 Computation of Direct and Overlapping Debt. ..... ..... .......... 13 107 Revenue Bond Coverage .......... ........ —............... ...... ..... 14 108 Property Value, Construction, and Bank Deposits ................. 15 109 Miscellaneous Statistics ....... ...... ......................... ........... ... 16 110-112 CITY (}FELK RIVER, MINNESOTA ELECTED AND APPOINTED OFFICIALS YEAR ENDED DECEMBER 31, 2000 APPOINTED PERSONNEL Patrick Klaera City Administrator Term Expires CITY COUNCIL Thomas Zerwas December 31 St»phonieKlinzing N1oyVr 2002 John J. Dietz Council member 2002 Larry Farber Council member 2800 Pam|KBotin Council member 2002 Daryl Thompson Council member 2000 APPOINTED PERSONNEL Patrick Klaera City Administrator Lori Johnson Finance Director Thomas Zerwas Police Chief Phi|ipHa|s Sbeat/ParkSupehnt*mdent Stephen Roh|f Building/Zoning Administrator Gary Leinnoe Wastewater Treatment Plant Chief Operator DavidPoh/in Liquor Store Manager Bruce West Fire Chief Sandra Peine City Clerk CaiherineK8eheHoh Director ofEconomic Development Bryan Adams Utilities Manager April 23, 2001 Honorable Mayor K]|nz|ng andCnunni|member* 13US5Orono Parkway Elk River, Minnesota 55330 Dear Mayor and Councilmembers-1 The Comprehensive Annual Financial Report (CAFR) for the City ofElk River for the fiscal year ended December 31.28O0,hahereby submitted. Responsibility for both the completeness and accuracy of this data, as well as the fairness of this presentation including all enclosures, rests with the City. Tothe best ofmyknowledge and belief, the enclosed data are accurate inall material respects and are recorded in a manner designed to present fairly the financial position and the results ofoperations ofthe various funds and account groups ofthe City. All disclosure necessary toenable the reader togain anunderstanding ofthe City's financial activities has been included. The Comprehensive Annual Financial Report (CAFR) is presented in three sections: Introductory, Financial, and Statistical. The Introductory section includes list cfCity officials, the organizational chart, and this transmittal letter. The Fiinenmasection includes the Independent Auditor's Report, the general purpose financial statements, the combining, individual, and account group financial statements and schedules, and the bonded and indebtedness schedules, including information onbond maturities. The Statistical section includes, selected financial and demographic information generally presented onomulti-year basis. Whenever possible, ten year historical information ispresented. The funds included in Ellk River's Comprehensive Annual Financial Report are those considered tobewithinthe finamuia|reporting entity ofthe City ufElk River (the primary government) amwell asall ofits component units. Component units are Kega||yseparate entities for which the primary government is financially accountable. The Elk River Economic Development Authority (EDA)iu considered part of the pdmary government due to the composition of its governing board of which the City Council members hold four ofthe seven seats. The City ofElk River provides afull range ofservices including general government, planning and zoning, euomurniudevelopment, public safety, building, fire, and safety inspections, parks and recreation, library, street, infrastructure maintenance and nepair, and other City activities. The City also provides utifity services including water, aewer, garbage, and electric, and the City operates onoff-sale liquor store. Discretely presented component units are reported in a separate column in the financial statements toemphasize that they are legally separate from the primary government and ho differentiate their financial positions, results ofoperations, and cash flows from those of the primary government. The Elk River Housing and Redevelopment Authority (HRA)|areported as adiscreetly presented component unit. Transmittal Letter ftrR 23_2001 GOVERNMENTAL STRUCTURE. LOCAL ECONOMIC CONDITION AND OUTLOOK Elk River is agrowing river City located omthe Mississippi River hnsoutheastern Sherburne County and serves amthe county seat for Sherburne County. Elk River islocated between two major growing metropolitan areas, Minneapolis -St. Paul and St. Cloud. Although there are several new commercial districts, the City retains e historic downtown area. The City has a large land area of approximately 44 square miles of which around 40 percent is developed with the majority of the undeveloped, rural properties in the northern and eastern areas of the City. The east central part ofthe City is developing rapidly now that municipal services are available. A new four -lane road, Twin Lakes Road, runs through this area connecting two major highways. Much of the area between these major highways and along the new Twin Lakes Road has recently become available for commercial and business park development, Residential, commercial and business park development iewell underway, The0S.CenausBuneau|iotedtheCity,s3OODpopu|aUonet1@.447;thisiaenincr*aseof476 percent over the 199Ocensus. The City has experienced steady and moderate growth ofabout five percent each year. Similar growth iaexpected inthe future until all nfthe Urban Service Area is developed. The City was originally incorporated in 1880 and consolidated with the Township of Elk River in 1878� |toperates under the VVeok-PNayor-Counoi|form nfgovernment. The Council consists of four council members elected byward bofour-year terms, and the Mayor, who is also elected toa four-year term. Two council seats are upfor election each even year. Redistricting will occur prior to the next election based on current census data. The City Council is responsible for adopting the City's budget and tax levy, passing resolutions and ordinances, all hiring and firing decisions, growth planning, policy making, and overall direction of the City. Increasing and diversifying the City's tax base are high priorbiem, and inorder tmaccomplish those goals, the City and Economic Development Authority have worked difigently to that end. The City's efforts to attract businesses to the new business parks became a reality in 2000. Construction occurred in three industrial/business park areas; several new light industrial manufacturing and bay buildings were started in 2000 and were completed in early 2001 . To improve and expand efforts tuattract light industrial business tothe City, a Strategic Industrial Marketing Plan was adopted in: June 2000. This ieathree year plan that guides the City's marketing efforts. Along with the marketing plan, a Communication Strategy, and Siting and Expansion Process Plan were started in 2000 and will be completed by late spring 2001. These projects involve numerous departments and are a continuing effort to improve our relationship with developers and businesses. The historic downtown continues tobe afocal point especially now that mCentral Business District Work Plan is in place. As m result ofthese planning efhorts, o sidewalk improvement project has beenapproved for the downtown area and will becompleted in2OO1. |naddition to new sidewalks, overhead electric lines will beburied, new trees and flowers will beplanted, and other beautification improvements will bemade. The Housing and Redevelopment Authority also started aDowntown Redevelopment Plan and isworking with the Heritage Preservation Commission to complete a review of the historic significance and viability of each of the downtown buildings. When completed this information will be used to guide future development and redevelopment ofthe downtown business district. Both residential and commercial/industrial building in 2000 were brisk; permits were issued for over $72,0O0.OQOofnew construction. Commercial construction had arecord year with permits totalling $3D.945.29Obeing, issued, Some ufthe major projects inc|udaVVal-KQartandHonne Depot withaoornbinedva|uenf$12,OOO.UOO,hwo|ightinduethe|bui|dingav*ithauumbinedva|ue of$3.000.BQO.and anoffice building valued at$2.DOO,OOD. Residential construction also increased in2O80with 284units constructed otovalue of$41.11B.528. The average home value IV nansmitta; Letter increased from $128.690to$153.Q17. There was a significant increase iohowmhomeand duplex development while single-family permits remained similar to last year. Elk River continues tuserve aaMinnesota's Energy City, asithas since October 1Q90.by promoting energy efficiency and renewable energy. Aomresult ofthese efforts, in2ODOawind turbine was constructed inthe City and isnow inoperation generating anaverage of1.2QO.UOO kilowatt hours per year. The City's electric utility isthe interconnection provider for the wind turbine. MAJOR0NITIAPVES No major projects were started in 2000 as the City worked to complete the major infrastructure improvements already underway in the eastern portion of the City. The street portion of this project was sbsrtedim2QO0with completion ofthe entire project p jeotedfortheephngcf28n2. Twin Lakes Road is a new four lane roadway that is funded by federal high priority project funds, TEA21,municipal atata-aid.tax increment, and other City funds. This iathe final component ofa $14.O@O.8ODproject boextendmumicipa|mervioeoandmem/nmadstoepproximoote|y7Q0ecresof residential, commercial, and business park property. The City issued $8D8.DDOufgeneral obligation tax increment bonds in 2000 to fund the portion of Twin Lakes Road that lies within tax increment financing district 19. The one small improvement project mtartedim20O0isthmVVesharnArea Phase |Vimprovements; completion isscheduled for early summer 2OO1. This project includesvvater,sewer'andsdpmet improvements including the extension ofBusiness Center Drive toWaco Street tocomplete the connection between Waco and Joplin Streets. The project also provides sewer and water for commercial, business park, and residential property. A30,000square foot clinic iscurrently under construction inone ofthe newly platted lots aYthe corner ofWaco and Business Center Drive. This improvement project isbaimgfundedbyapenie|oasnssmenbetobenefiting properties. FINANCIAL INFORMATION The City of Elk River maintains accounting records for all governmental funds on a modified accrual basis with expenditures recognized inthe accounting period inwhich the related fund liability is incurred and revenues recognized in the accounting period in which they become available and measurable. The City's proprietary funds are maintained nm an accrual basis where expenditures are recogniized in a period in which the liability is incurred and revenues are recognized lnthe accounting period imwhich they are earned. |tiothe responsibility mfthe City's management Wuestablish and maintain proper and adequate internal controls. These internal controls provide reasonable, but not absolute, assurance regarding safeguarding the City's assets against loss, theft, ormisuse, and ensuring that adequate financial records are maintained for preparing financial statements in accordance with generally accepted accounting principles and for the accountability of the City's fixed assets. The development of an appropriate internal control system requires estimates and judgments by management when evaluating the costs and benefits ofthe system. Elk River's internal control structure iadesigned such that the estimated costs donot exceed the benefits. The City Council approves the budget for the General Fund, various governmental funds, and all proprietary funds onmmannual basis. The City maintains extensive budgetary controls boensure the intent and legal provisions ofthe approved budget are adhered bothroughout the year. Development of the budget begins in May and June when department heads prepare budget requests for the following year. The budget requests are compiled bythe Finance Department and subsequently reviewed bythe Finance Director and City Administrator. Each department head meets with the Finance Director and City Administrator to discuss his or her department's budget. The Council holds several budget work sessions todiscuss the budget and allows opportunities for public discussion prior hoapproval ufthe proposed budget. City Council ia V Transmittal Letter required to approve the proposed budget and tax levy prior to September 15. If the Council anticipates that the tax rate will increase, the City Council must adopt aresolution inOctober stating that fact. |nDecember, opublic hearing onthe final budget and tax levy isheld atwhich staff presents budget and tax levy information and public comments are received. State law requires that the City Council approve the budget and tax levy and asubsequent meeting� After adoption and within five working days after December 2Othe tax levy iscertified tothe County for collection. The budget serves asaguideline for anticipated expenditures and proposed revenues. The revenues and expenditures may beadjusted throughout the year asdeemed necessary and asapproved bythe City Council. Budget amendments are approved inDecember incorporating all the previously approved changes tothe budget. The City has placed a high priority on continually improving the financial condition ofthe City. \n order toaccomplish that goal, City Council and management have applied sound and consistent financial management practices inall aspects of the operations ofthe City. Even with continued population growth and related increased service pressure, the City has been able *oincrease the General Fund fund balance and add $oother reserve funds that are available atthe Council's discretion tufund operating and capital expenditures for unbudQetedprograms and projects. TbE Qty holds an A3 bond rating with a positive outlook from Moody's Investor Service. N1oody's credits the City's strong tax base growth and solid financial position for the improved rating and positive outlook. The City will continue to provide the high level of services that our citizens have come to expect as well as expand services to meet the increased growth and new demands of the residents whenever possible. The City Council will beresponsive tothe citizens' needs and sensitive tothe amount ofproperty taxes those citizens pay. General Fund Functions and Fund Balance ��O�s All general governmental functions Vfthe City that are not accounted for inseparate funds are included in: the General Fund, Total revenues and transfers inthe General Fund in2OQOwere K320.121. This isenincrease of$O51.U8Bover 1SQSrevenues and transfers. Percent Increase Of (Decrease) Revenue Source 2008 Tota! 1989 from 199S General Property Tax $3,288,976 52.0496 $3,057.609 $231.387 Licenses and Permits 749,888 11�8794 511,308 238.582 Intergovernmental Revenues 1,108,078 17.559& 1,104.281 4.797 Charges for Services 598.203 9.43% 491,197 185.008 Fines 110,421 1�8996 117,814 1.807 Interest 161,759 2.5896 53,578 108.181 Other Revenue 18,396 0.2994 23,048 (4.852) Transfers from Other Funds 276,400 43796 309,800 O Total Revenues and Transfers $8320121 10008Y4 $5668433 $651688 m Transmittal Letter April 23, 2001 2000 General Fund Revenues by Source Other Transfers Revenue Charges for from Other 0.29% SefVjCeS Funds Fines 9.43% 4.37% 1.89% - Intergovtl Property Tax Revenues 52,04% 17.55% Licenses & Permits Interest 11.87% 2,56% General property tax accounts for more than half of the General Fund's total revenues. Taxes increased $231,367 in 2000 but fell short of the proposed budget due to a large property tax abatement for an industrial building in which two years of previously paid taxes were refunded in 2000 in accordance with a tax court settlement. Licenses and permits revenues increased almost fifty percent in 2000 to $749,888. The majority of this increase, $219,456, came from building related fees such as building, plumbing, and heating permits. Intergovernmental revenues increased slightly in 2000 to $1,109,078 but decreased as a percent of total General Fund revenues. Matching COPS grants from the Federal government and other state police grants started decreasing in 1999 as the City's share of the matching grant increased. These grants will end in 2001. Charges for services totaled $596,203 in 2000. This represents an increase of $105,006 most of which is from growth related planning and development fees. Decreases in administrative project fees and school liaison charges were offset by increases in other fees including planning fees. Administrative project fees will increase in 2001 when improvement projects started in 2000 are completed. Fine revenue remained consistent with previous years increasing slightly to $119,421. Interest income increased $108,181 in 2000 to $161,759. Part of this increase is due to the fair value increase in the investments. Other revenues decreased to $18,396 in 2000. Fewer refunds and reimbursements were collected causing the decrease. Transfers from other funds totaled $276,400 in 2000, a decrease of $33,400 from 1999. Transfers in from the Development fund to offset Local Government Aid losses resulting from tax increment districts decreased from $16,522 to $3,900. Transfers in from the Capital Outlay Reserve for the D.A.R.E. programs decreased from $42,778 to $20,000. Vii Transmittal Letter April 23, 2001 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Expenditures General Fund Revenue History (5 Years) 1996 1997 1998 1999 2000 Year qMTransfers from Other Funds (3 Interest Im Other Revenue Eg Fines M Charges for Services E3 IntergovnmlJ Revenues 0 Licenses & Peraft Im Property Tax General Fund Expenditures and Transfers to other funds increased from $5,328,761 in 1999 to $5,937,389 in 2000. The majority of the increase in expenditures is in the public safety departments. Percent Increase of (Decrease) Program 2000 Total 1999 from 1998 General Government Public Safety Public Works Culture and Recreation Transfers to Other Funds Total Expenditures and Transfers $1,299,473 21,89% $1,142,257 $157,216 3,077,431 51.83% 2,785,666 291,765 868,426 14.63% 812,637 55,789 559,422 9.42% 500,601 58,821 132,637 2.23% 87.600 45,037 $5,937,389 100.00% $5,328,761 $608,628 2000 General Fund Expenditures by Program Viii Transmittal Letter A261 23, 2001 General government expenditures increased $157,216 in 2000 to $1,299,473. Most departments in general government increased due mainly to additional programs or staff. The Mayor and City Council budget increased to fund improved and expanded Cable TV services, including live broadcasting of City Council, Planning Commission, and Economic Development Authority meetings. These Cable TV services account for the majority of the $51,520 increase in Mayor and Council activities. Administration, Finance, Planning, and Government Buildings increases were due to cost of living pay increases and staff changes. Council Contingency expenditures increased due mainly to funding of special one time studies such as the feasibility study with the YMCA of Minneapolis to determine the viability of opening a YMCA in Elk River and for business consulting services to assist the City in evaluating and improving its industrial siting and expansion process. Public Safety expenditures increased $291,765 to $3,077,431 in 2000. Public Safety programs account for over half of the General Fund expenditures. Increased expenditures in the Police Department were due mainly to pay increases, high gasoline prices, and increases in other charges and services, related to telephone and computer systems. Fire Protection expenditures increased $50,055, due mainly to the addition of a full-time fire inspector to assist with the commercial/industrial fire inspection program. Building and Zoning expenditures increased $70,278; $22,973 of the increase was in capital outlay for the purchase of a truck and the remainder was in personal services due to the addition of a seasonal building inspector. Public Works expenditures totaled $868,426 in 2000, which is an increase of $55,789 over 1999 expenditures. This increase is due to cost of living increases for personnel, high fuel prices, and increases in supplies and services in the streets, snow removal and, equipment services departments. Engineering decreased by $20,471 in 2000 after increasing for a special one time project in 1999. Expenditures for culture and recreation programs increased $58,821 to $559,422 in 2000. Park maintenance expenditures increased $62,301 because of increased maintenance for new park facilities and grounds and because of an effort to, improve the appearance of the parks by raising the maintenance standards at the parks. Recreation expenditures decreased although recreation programs and offerings, as well as participation increased. Senior citizen program expenditures increased slightly due to the addition of a part time program assistant. Transfers to other funds increased $45,037 to $132,637 in 2000. A one time transfer of $32,000 to the Capital Outlay Reserve for park projects and a $13,037 transfer to the Ice Arena to fund operating made up the increase. 11I 111 a I I off , I11 1I1 1996 1997 1998 1999 2000 IM Transmiftaq Lefter April 23, 2001 Fund Balance The City's General Fund fund balance increased to $2,695,612 in 2000. The fund balance now represents 41.66 percent of the upcoming year's budget. The 2000 fund balance increase is again due mainly to building related revenues that exceeded both original, and amended budget projections. The City Council and management have consistently tried to maintain a fund balance that is adequate to fund unanticipated expenditures authorized by the Council such as new programs or services or other expenditures outside of the City's control such as a natural disaster. An adequate fund balance is also important because the City receives the majority of its revenues in July and December, therefore, adequate reserves must be on hand to cover expenditures for the first six months of the year, (1) Fund balance includes Unreserved and Reserved (2) Budget is Adopted Budget - ------ . . .. . ...... . . ....... . — General Fund Ten Year Trend 7,000,000 $6,000,000 $5,000,000 ��/��/� $4,000,000 - $3,000,000 - Fund Balance $2,000000 —a— Budget . . . . ......... $1,000:000 $0 (JI ti�5p gp & Year .. .. . . ... ........ . . ..... ..... . . .... ...................... . ....... ..... . . ........ . . . ...... . ....... ... Ki Fund Fund Balance Budget Balance Year December 31 (1) Year Budget (2) to Budget 1991 $ 750,469 1992 $ 2,836,600 26.46% 1992 809,514 1993 3,006,400 26.93% 1993 943,365 1994 3,394,750 27,79% 1994 982,698 1995 3,732,250 26,33% 1995 1,246,362 1996 4,094,750 30.44% 1996 1,609,394 1997 4,535,850 35.48% 1997 1,973,208 1998 4,905,250 40.23% 1998 1,973,208 1999 5,363,450 36.79% 1999 2,312,880 2000 5,862,500 39.45% 2000 2,695,612 2001 6,470,000 41.66% (1) Fund balance includes Unreserved and Reserved (2) Budget is Adopted Budget - ------ . . .. . ...... . . ....... . — General Fund Ten Year Trend 7,000,000 $6,000,000 $5,000,000 ��/��/� $4,000,000 - $3,000,000 - Fund Balance $2,000000 —a— Budget . . . . ......... $1,000:000 $0 (JI ti�5p gp & Year .. .. . . ... ........ . . ..... ..... . . .... ...................... . ....... ..... . . ........ . . . ...... . ....... ... Ki Transmittal Letter Apdl 2_3 .2001 In order to offer guidance to future councils and staff, a fund balance policy will be presented to the City Council for review and adoption this summer. This is one of the policies being reviewed as part of a financial planning project currently underway. This Key Financial Strategies process includes several workshop meetings with the City Council to discuss financial policies and key financial issues facing the City. The City has retained a consultant to assist the Council with this financial planning project. ENTERPRISE FUNDS The City operates five enterprise funds including garbage collection, municipal water, sewer and electric utifities and an off -sale liquor store. In 2000 each of the enterprise funds had a positive income after transfers. Garbage Collection Charges for services in the Garbage Fund decreased from $754,801 to 686,815 in 2000. User rates were decreased in 2000 to offset a reimbursement from Sherburne County that funded part of the recycling costs previously paid by customers. The reduction of rates was also an attempt to draw down the retained earnings balance in this fund. A large sales tax rebate in 1999 for sales tax collected in error on tipping fees paid from 1997 to October 1999 and a change in payment of the tipping fee have caused a higher than needed retained earnings balance, In order to further reduce the balance, garbage rates will not increase until the balance is reduced to approximately $75,000. Liquor Store The Liquor Store had its best year ever with a gross profit of 24.86 percent on sales of $3,788,048 in 2000, almost a nine percent increase. Income before transfers totaled $496,502; this increase of $148,919 is the result of increased sales, decreased operating expenses, and increased interest income. The Liquor fund net income, after transfers of $146,400 to the General Fund and a debt service fund, totaled $350,102, an increase of $143,769. Sewage Disposal Fund There were 485 unit connections to the sewer system in 2000, the most the City has ever had in one year. Due to many new service connections, charges for services increased ten percent to $877,655. There was an inflationary increase in rates in 2000 and again in 2001. User rates will be adjusted annually for inflation and will be monitored and adjusted as necessary to fund operating and capital needs. Given the recent plant expansion, the only capital needs are for replacing and maintaining some of the buildings and equipment that were not updated during the expansion because they had not reached their full useful life. 01 Charges for Income Before Income After Fund Services/Sales Transfers Transfers . ............. . ....... 2.000 1999 2000 1999 2000 1999 Garbage $ 686,815 $ 754,804 $ 20,343 $ 122,714 $ 20,343 $ 122,714 Liquor 3,788,048 3,478,938 496,502 347,583 350,102 206,333 Sewer 877,654 797,101 758,664 373,532 738,328 365,532 Water 755,462 627,449 618,449 530,346 561,828 (77,001) Electric 9,389,846 8,902,004 1,717,280 1,873,820 1,486,366 1,651,846 Garbage Collection Charges for services in the Garbage Fund decreased from $754,801 to 686,815 in 2000. User rates were decreased in 2000 to offset a reimbursement from Sherburne County that funded part of the recycling costs previously paid by customers. The reduction of rates was also an attempt to draw down the retained earnings balance in this fund. A large sales tax rebate in 1999 for sales tax collected in error on tipping fees paid from 1997 to October 1999 and a change in payment of the tipping fee have caused a higher than needed retained earnings balance, In order to further reduce the balance, garbage rates will not increase until the balance is reduced to approximately $75,000. Liquor Store The Liquor Store had its best year ever with a gross profit of 24.86 percent on sales of $3,788,048 in 2000, almost a nine percent increase. Income before transfers totaled $496,502; this increase of $148,919 is the result of increased sales, decreased operating expenses, and increased interest income. The Liquor fund net income, after transfers of $146,400 to the General Fund and a debt service fund, totaled $350,102, an increase of $143,769. Sewage Disposal Fund There were 485 unit connections to the sewer system in 2000, the most the City has ever had in one year. Due to many new service connections, charges for services increased ten percent to $877,655. There was an inflationary increase in rates in 2000 and again in 2001. User rates will be adjusted annually for inflation and will be monitored and adjusted as necessary to fund operating and capital needs. Given the recent plant expansion, the only capital needs are for replacing and maintaining some of the buildings and equipment that were not updated during the expansion because they had not reached their full useful life. 01 Transmittal Letter Apriil_23, 200 1, Water Fund Charges for services in the Water Fund increased to $755,462, a 20 percent increase. This increase is due to new customer connections and increased usage during a very dry year. In November 2OOO.orate increase of513percent was approved. Prior huthis increase, water rates had not been adjusted since 1B97, Connections charges totaled $524`085in2OOOwhich isthe equivalent uf38Dunits. The Water Fund reported anet income after transfers of$5O1.828. In 1989 the Water Fund paid $500,000 for water system expansion costs in east Elk River resulting imanet loss of$77,OQ1 Electric Fund In the last several years the Electric Utility has spent significantresouroeatuempendandimnprove its service area and also tuacquire new territory. Much ofthis expansion ksinto undeveloped areas that are beginning tosee commercial and residential growth occur atafast pace. This increased customer base should provide asignificant increase incharges for service revenue in the future. |n2DO0charges for services totaled $8.389.B4O. The cost ofpurchased power continues to be a concern as are the recent discussions on deregulation and other legislative changes that affect the electric industry. Because ofthe increased cost ofpurchase power, operating income decreased in2OOOto$1.121.O57. The Electric Fund has retained earnings of $13.492,075. The electric utility will continue to need resources to meet the growing demands to expand its service area and houpdate its existing distribution system. The City approved four bond issues in2DQ8plus anequipment certificate. A $1,275,000 improvement bond was issued to finance the Western Area Phase IV improvements. This entire issue will be repaid through special assessmenits to the benefiting properties. Additionally, atax increment issue of $800,000 was approved completing the bond financing for the East Elk River Improvement Project. This issue funds the Twin Lakes Road street construction that goes through tax increment financing district 19. Also, two refunding bonds were issued; one tnrefund the 1A89,Band 199OAtaxable general ob]igationtax increment bonds and one torefund the 1992A general obligation improvement bonds that were issued to fund the Western Area Phase I improvements. The refunded issues resulted in present value interest savings of $70,525.57. Finally, equipment certificates inthe amount of $1g8.28Owere issued tofinance public safety and public works equipment, Total debt outstanding atthe end of2OOOdecreased $7,875tu$27.O21.45D. The City's legal debt margin remaining is $14,935,904. The City has only $O12.45Oofdebt applicable tmthe debt limit. The City's direct and overlapping debt decreased $1.42B.83Gto$28.383.381. Special assessment debt accounts for 49 percent of the total outstanding debt, revenue funded debt accounts for 42 percent with the remainder being general long-term debt supported by tax levies ortax increment income. The special assessment debt may becalled ordefeamedwhenever possible with funds available from special assessment prepayments; rapid special assessment pay offs continue oedevelopment occurs innewly assessed areas. CASH MANAGEMENT All of the City's idle cash is maintained in an investment pool on a combined basis where all funds with acash balance participate inthe investment pool. The Economic Development Authority, Water Fund, and Electric Fund dunot participate inthe investment pool. Pooling cash allows for the investment of larger sums of money, which frequently results in more favorable interest rates and returns ominvestment. Each month the interest earnings are allocated toeach fund participating in the investment pool on a pro -rated basis based on each fund's ending cash balance. Xii Transmittal Letter The Economic Development Authority inves1 its funds separately as its bylaws dnnot currently allow for the pooling ofinvestments, Investment ofidle cash inthe Water and Electric funds ha the responsibility of the Elk River Municipal UMUMee Commission. Elk River's investment policy states that safety and liquidity of the City's investment portfolio are more important than the return on the investment. Elk River's investment policy closely follows all of the state statutes governing the investment ofmunicipal funds. The City's cash needs are closely monitored to ensure that cash is available to meet cash flow needs with available resources. All investments are purchased with the intent of being held until maturity. The investment pool had interest earnings of$1,292.31Oim2@OO. TIF -If., IF, 7J--TV-1TVVTJ 1411VA The City continues toclosely monitor its insurance premium costs byannually reviewing all property and equipment schedules for completeness and accuracy and d:ienomaingthe City's insurance policies with the City's agent and underwriter. The City has been very active in promoting safe work habits and asafe work environment tVreduce work related injuries and, ultimately, worker's compensation premiums. The City does not self insure nor does itintend tm inthe future. The City, however, does have funds available in the Emergency/insurance Reserve fund tocover insurance deductibles cfless than $1.00Uper occurrence. Use of Reoott The Comprehensive Annual Financial Report is published to provide the City Council, citizens, bondholders, and all other interested persons with detailed information regarding the City. The Report isdistributed bnthe Mayor and City Council, City Administrator and department heads, fiscal agencies, and other interested individuals. The Report isavailable for inspection and review atthe Public Library and City Hall. Any person requesting acopy ofthe Report will bu provided one. Indeoendent Audit The City's Ordinance and Minnesota State Statutes require an annual audit of the City's accounts by the Minnesota State Auditor's Office or by independent certified public accountants. The City of Elk River has retained the firm of Abdo, Abdo, Eick, and Meyers, LLP for that purpose and their unqualified opinion has been included inthis Report. The independent auditor's report Vmthe gemens|purpoaofinancie|s1ahamentsendcombimingandindividua|fundutubemamtaand schedules ioincluded imthe financial section ofthis Report. Certificate of Achievement for Excellence in Financial Reportin The Government Finance Officers Association, of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Elk River for its comprehensive annual financial report for the fiscal year ended December 01.1998. This was the eleventh consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. ACertificate ofAchievement |svalid for operiod ofone year only. W»believe that our current comprehensive annual financial report continues tmmeet the Certificate ofAchievement Program's ngquhmannnmts, and we are submitting iktothe GFOAtu determine its eligibility for another certificate. Tranvmma� Letter The preparation of this report could not have been accomplished without the efficient and dedicated services ofthe entire finance department. | would like toexpress myappreciation tn the Assistant Finance Director and all others who assisted in the preparation of this report. Credit also goes tothe Mayor and City Council for their support and dedication toupholding high standards inthe management ofthe City's finances. Respectfully submitted, Lori Johnson Finance Oinau1or XIV Certificate of Achievement I ior Excellence i:#. Financial M P, W A EEK*= Presented to City of Elk River, Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 1999 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. 4� OF T WED IT A TM wr 10 CPWOON resident SMIAUL Executive Director *0 I tm I 6722-4-elml;- ■Y ABDO DO EI d J /IL-"TffRSLLP Cyrp,d Public Accouniatus & Consultants 7241 Ohms Lane Suite 200 Mi,meapo4 MN 55439 INDEPENDE`JT AUDITORS' REPORT Honorable Mayor and City Council City of Elk River, Minnesota We have audited the accompanying general purpose financial statements of the City of Elk. River, Minnesota, as of and for the year ended December 31, 2000 as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Elk River, Minnesota's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. "Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Elk River, Minnesota at December 31, 2000 and the results of its operations and cash flows of the proprietary fiord type for the year then ended, in conformity with U.S. generally accepted accounting principles. In accordance with Government Auditing Standards we have also issued our report dated March 15, 2001, on our consideration of the City's internal control over financial reporting and our test if its compliance with certain provisions of lawns, regulations, contracts and grants. That report is an integral part of an audit conducted in accordance with the standards applicable to financial audits contained in Government Auditing Standards, and in considering the results of the audit, should be read along with the independent auditors' report. Our audit was performed for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund financial statements listed in the table of contents are presented for the purpose of additional analysis and are not a required part of the general purpose financial statements of the City of Elk River, Minnesota. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. March 15, 2001 Minneapolis, Minnesota 612.835.9090 + Fax 612.835.3261. ABDO, SICK & PtEYERS, LLP Certified Public Accountants + i i � A � �'� � � CITY OF ELK RIVER, MINNESOTA GENERAL PURPOSE FINANCIAL STATEMENTS The general purpose financial statements and notes to the financial statements are intended to provide an overview and broad perspective of the City's financial position and operations. These statements present a summary set of information needed to control and analyze current operations, to determine compliance with legal and budgetary limitations and to assist in financial planning. The following general purpose financial statements are presented: Combiined Balance Sheet - All Fund Types, Account Groups and Discretely Presented Component Unit Combined Statement of Revenue, Expenditures and Changes in Fund Balance (Deficit) - All Governmental Fund Types and Discretely Presented Component Unit Combined Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual - General and Budgeted Special Revenue Funds Combined Statement of Revenue, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Combined Statement of Cash Flows - All Proprietary Fund Types CITY OF ELK RIVER, MINNESOTA COMBINED BALANCE SHEET ALL FUND TYPES, ACCOUNT GROUPS AND DISCRETELY PRESENTED COMPONENT UNIT DECEMBER 31. 2000 ASSETS Cash and investments Cash with fiscal agent Receivables - Delinquent taxes Special assessments Notes Accounts Interest Due from other funds Due from component unit Due from other governments Inventories Prepaid items Fixed assets, net Restricted asset - investments Unamortized bond discount OTHER DEBITS Amount available in Debt Service Funds Amount to be provided for debt retirement TOTAL ASSETS AND OTHER DEBITS LIABILITIES, EQUITY AND OTHER CREDITS LIABILITIES Accounts and contracts payable Salaries and, benefits payable Compensated absences payable Accrued interest Customer deposits Due to other funds Due to primary government Due to other governments Deferred revenue Bonds payable TOTAL LIABILITIES EQUITY AND OTHER CREDITS Investment in general faxed assets Contributed capital Retained earnings - Reserved Unreserved Fund balance (deficit) - Reserved Unreserved - Designated Undesignated TOTAL EQUITY AND OTHER CREDITS TOTAL LIABILITIES, EQUITY AND OTHER CREDITS See Notes to Financial Statements. Proprietary Fund Type Governmental Fund Types Projects Special Debt General Revenue Service $ 2,838,320 $ 7,918,064 3,894, - - 1,975, 214,107 19,513 28, 125,200 1,155,493 7,466, - 964,423 5,514 209,956 28,362 64,304 32, 6,782 302,069 1,771 31,321 35,099 38,217 43,732 Proprietary Fund Type 3,129,955 $ 9,560,278 $ 13,397,758 $ 6,351,020 $ 37,715,414 $ 171,273 $ 64,491 $ 146,432 6,932 145,732 - 334,447 114,636 641,708 434,343 1,193,310 4,013 $ 494,452 $ 658,641 - - 257,212 56,356 106,115 2,125,185 139,148 7,353,988 2,690,561 6,768 - - 6,872,500 7,358,001 5,310,198 8,096,740 4,994,697 1,210,764 - - - - 23,413,213 1,927,361 6,039,757 560„356 - 2,695,612 918,856 - 2„345,843 - 5,520,751 - (1,865,377) - 2,695,612 8,366,968 6,039,757 1,040,822 29,618,674 $ 3,129,955 $ 9,560,278 $ 13„397,758 $ 6,351,020 $ 37,715,414 N Capital Projects Enterprise 867 $ 968,620 $ 7,901,890 656 - 561 4,664 350 2,702,559 - 125,200 1,155,493 324 24,444 42,198 1,973,232 127,982 532,301 - - 876,301 31,321 26,283,159 1,210,764 86,306 3,129,955 $ 9,560,278 $ 13,397,758 $ 6,351,020 $ 37,715,414 $ 171,273 $ 64,491 $ 146,432 6,932 145,732 - 334,447 114,636 641,708 434,343 1,193,310 4,013 $ 494,452 $ 658,641 - - 257,212 56,356 106,115 2,125,185 139,148 7,353,988 2,690,561 6,768 - - 6,872,500 7,358,001 5,310,198 8,096,740 4,994,697 1,210,764 - - - - 23,413,213 1,927,361 6,039,757 560„356 - 2,695,612 918,856 - 2„345,843 - 5,520,751 - (1,865,377) - 2,695,612 8,366,968 6,039,757 1,040,822 29,618,674 $ 3,129,955 $ 9,560,278 $ 13„397,758 $ 6,351,020 $ 37,715,414 N EXHIBIT 1 Fiduciary Totals - Primary Government Component Totals - Reporting Entity Fund Type Account Groups (Memorandum Only) Unit (Memorandum Only) General General Fixed Long-term Agency Assets Debt 2000 1999 HRA 2000 1999 $ 56,656 $ $ $ 23,598,417 $ 19,156,273 $ 93,005 $ 23,691,422 $ 19,277,186 - 1,975,656 1,980,754 - 1,975,656 1,960,754 266,845 187,553 5,736 272,581 191,478 10,168,909 9,741,903 10,168,909 9,741,903 - 964,423 1,042,457 964,423 1,042,457 34,546 1,530,709 1,237,600 1,530,709 1,237,600 191,632 173,435 191,632 173,435 2,410,065 1,804,769 2,410,065 1,804,769 1,771 273,785 1,771 273,785 605,617 691,553 605,617 691,553 876,301 876,077 876,301 876,077 75,053 82,895 75,053 82,895 18,411,833 44,694,992 42,983,344 44,694,992 42,983,344 - 1,210,764 924,747 1,210,764 924,747 86,306 94,427 86,306 94,427 6,039,757 6,039,757 5,467,993 6,039,767 5,467,993 - 15,404,742 15,404,742 15,570,960 15,404,742 15,570,960 $ 91,202 $ 18,411,833 $ 21,444,499 $ 110,101,959 $ 102,290,525 $ 98,741 $ 110,200,700 $ 102,415,363 $ 91,202 $ $ $ 1,484,072 $ 1,490,848 $ 94 $ 1,484,166 $ 1,490,848 - 412,576 401,478 412,576 401,478 319,071 319,071 269,692 319,071 269,692 56,356 61,231 56,356 61,231 106,115 98,250 106,115 98,250 21410,065 1,804,769 - 2,410,065 1,804,769 - - 1.771 1,771 273,785 334,447 360,327 - 334,447 360,327 10,807,663 10,486,637 3,341 10,811,004 10,488,662 21,125,428 27,997,928 28,131,761 27,997,928 28,131,761 91,202 21,444,499 43,928,293 43,104,993 5,206 43,933,499 43,380,803 18,411,833 - 18,411,833 17,662,212 18,411,833 17,662,212 4,994,697 4,994,697 4,994,697 4,994,697 1,210,764 924,747 1,210,764 924,747 23,413,213 20,542,263 23,413,213 20,542,263 8,527,474 7,645,575 8,527,474 7,645,575 5,960,311 5,3%877 5,960,311 5,310,877 - 3,656,374 2,105,161 93,535 3,748,909 1,954,189 18,411,833 - 66,173,666 59,185,532 93,535 66,267,201 59,034,560 $ 91,202 $ 18,411,833 21,444,499 $ 110,101,959 $ 102,290,525 $ 98,741 $ 110,200,7130 102,415,363 CITY OF ELK RIVER, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE (DEFICIT) ALL GOVERNMENTAL FUND TYPES AND DISCRETELY PRESENTED COMPONENT UNIT YEAR ENDED DECEMBER 31, 2000 REVENUE General property taxes Licenses and permits Intergovernmental Charges for services Fines Special assessments Interest income Miscellaneous TOTALREVENUE EXPENDITURES Current: General government Public safety Public works Culture and recreation Health and sanitation Community development Capital outlay Debt service: Principal Interest and service charges Refunding escrow TOTAL EXPENDITURES EXCESS REVENUE (EXPENDITURES) OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers in - component unit Operating transfers out Operating transfers out - primary government Proceeds of long-term debt Proceeds of refunding bonds Payment to refunding bond escrow agent Proceeds from sale of fixed asset TOTAL OTHER FINANCING SOURCES (USES) EXCESS REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND BALANCE (DEFICIT), JANUARY I RESIDUAL EQUITY TRANSFERS IN RESIDUAL EQUITY TRANSFERS OUT FUND BALANCE, DECEMBER 31 See Notes to Financial Statements. Governmental Fund Types $ 2,695,612 $ 8,366,968 $ 6,039757 $ 1,040,822 Special Debt Capital General Revenue Service Projects $ 3,288,976 $ 307,344 $ 527,145 $ 109,080 749,888 - - - 1,109,078 73,050 67,778 3,719,150 596,203 533,631 - - 1' 19,421 119,421 - - - - - 1,804,743 590,730 161,759 455,362 233,693 156,630 18,396 2,128,502 - 1,510,360 6,043,721 3,497,889 2,633,359 6,085,950 1,299,473 38,272 - - 3,077;431 52,238 - 868,426 59,049 - 559,422 543,155 - - 8,175 - 357,299 - - 267,752 - 7,884,488 - 1,669,624 - 1,048,545 - - 181,457 - 5,804,752 1,325,940 2,899,626 7,884,488 238,969 2,171,949 (266,267) (1,798,538) 275,400 249,361 759,888 1,000 6,300 - (132,637) (492,839) (204,902) 54,340 2,195,719 1,397,174 - (1,373,371) 143,763 (237,178) 838,031 1,990,817 382,732 1,934,771 671,764 192,279 2,312,880 6,432,197 5,467,993 848,543 $ 2,695,612 $ 8,366,968 $ 6,039757 $ 1,040,822 rntals-pxmmwGuvemmem Component Tutals-nepomngEnmy (Memorandum Only) Unit (Memorandum Only) 2000 19$9 HRA 2000 1999 � 4.232.545 $ 3,916.590 $ 9*.6$7 $ 4'327.152 $ *.004.229 74e.888 511.306 ' 7*9.8$8 511.306 4.968.058 2'360.153 5.642 4,974.698 2'365.792 1.129.834 953.4e6 ' 1,129.*34 953.*96 119,4e1 117.814 119,421 117.61* 2,395,473 2,070,96 2,395,473 2,070,961 1.0074*4 491.008 6.023 1,013,467 4e5,484 3,657,258 2,386,298 - 3,657,258 2,386,2e8 18.260.$19 12'808.026 106.272 18,367.191 12.805,180 1.337.7*5 1.185.907 - 1.337.745 1.185.907 3.128.009 2'886.627 3.129.$69 2.806.627 927.*75 821.228 927.475 821.226 1.102.577 903.364 1.102.577 903.364 8.175 159,488 ' 8.175 158,488 357,299 26448* 29,465 386,76* 312,283 8.152.2*0 8739,415 8.152.240 8.73941e 1,669,624 1,611,5e2 - 1,669,634 1,611�592 1,048,545 930,671 1�48,545 930,671 181,457 ------- 1.153.140 ----- ----- 181,457 ------- 1.153.140 17,914,806 18,575,914 1o,57n.o14 z9,465 1/,94*,271 18,623.693 346.113 (6.7$7.88$) 76.807 *zz'emo (5.718.513) 1.284.0*9 1'957.829 1.284,6*$ 1.957.82$ 7,300 1,008 7.300 1.000 (830378) (379.258) (moo.ara) (97e.258) - (7.300) (7.380) (1.000 2,350,059 5,81e./03 - 2,250,059 5,818,103 1,397.17* 576.942 - 1.397.17* 576.842 (1,373,37) U,373,371> - - 175,000 175,000 - 2735,433 7,374.*16 /67.700 2.e03.133 7,373.616 3'081.546 1`600.72$ 244.507 3'326.053 1,655,103 /5,061,613 13,454.885 (160,972) 14,910.641 13,255,530 309,508 309,508 (309,508) (309.50e $ 18.143,159 $ 15,081.613 93.535 $ 18,236.684 $ 14.910.641 � CITY OF ELK RIVER, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL AND BUDGETED SPECIAL REVENUE FUNDS (SEE NOTE 13) YEAR ENDED DECEMBER 31, 2000 REVENUE General property taxes Licenses and permits Intergovernmental Charges for services Fines Interest income Miscellaneous TOTALREVENUE EXPENDITURES Current: General government Public safety Public works Culture and recreation Health and sanitation Community development Capital outlay TOTAL EXPENDITURES EXCESS REVENUE (EXPENDITURES) OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers in - component unit Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 See Notes to Financial Statements. 6 General Fund Variance - Favorable $ 3,311,100 $ 3,288,976 $ (22,124) 688,100 749,888 61,788 1,082,100 1,109,078 26,978 582,400 596,203 13,803 115,700 119,.421 3,721 80,000 161,759 81,759 12,700 18,396 5,696 5,872,100 6,043,721 171,621 1,327,850 1,299,473 28,377 3,024,900 3,077,431 (52,531) 988,800 868,426 120,374 535,450 559,422 (23,972) 5,877,000 5,804,752 72,248 (4,900) 238,969 243,869 275,400 275,400 - 1,000 1,000 - (132,637) (132,637) - 143,763 143,763 - $ 138,863 382,732 $ 243,869 2,312,880 $ 2,695,612 EXHIBIT Budgeted Special Revenue Funds Variance ' Favorable Budget Actual (Unfavorable) � 181.700 * 183,618 $ 1.918 - 20.750 - 20,840 - 98 405.000 532,328 127,320 3.050 89,144 - 8G.084 130.700 391,893 255.193 747.200 1,217.821 470.621 - - - 340.800 448.605 ' - (94^895) 73.850 32.377 (18,527 173.000 100,372 (16.772) 112.500 7.998 4,502 548.750 674.442 (125,692) 198.450 543.379 344.929 27.328 27,328 8.300 6.380 (224.500) (197J37) 27,363 � (28.850 346.242 $ 372.292 ===== ===== 1,285,664 7 FOIN�0m, CITY OFELK RIVER, MINNESOTA COMBINED STATEMENT [>FREVENUE, EXPENSES, AND CHANGES |NRETAINED EARNINGS ALL PROPRIETARY FUND TYPES YEAR ENDED DECEMBER 31.2U0O See Notes tnFinancial Statements. Enterprise Funds OPERATING REVENUE Sales 3.788.040 Less cost ofsales 2.846.326 GROSS PROFIT 941.722 Charges for services 11.709.778 GROSS PROFIT AND CHARGES FOR SERVICES 12.651.500 OPERATING EXPENSES Personal services 1.419.208 Professional and contractual services 901'285 Purchased and generated power 5.497.606 Utilities 269,888 Maintenance and repairs 827.148 |mnwmanoa 82.576 Depreciation 1.392.008 Supplies and miscellaneous 493.225 TOTAL OPERATING EXPENSES 10.882.840 OPERATING INCOME 1,768'580 N<JNOPERAT|Nc3REVENUE (EXPENSES) Interest income 468.159 Connection charges 1.614.533 Customer penalties 88.548 Miscellaneous revenue 118.420 Interest expense (390.424) Amortization ofbond discount (8.088) Loss ondisposal offixed assets (41'122) Miscellaneous expenses (8'449) TOTALNDNOPERAT|NG REVENUE (EXPENSES) 1.842,078 INCOME BEFORE TRANSFERS 3.611.238 OPERATING TRANSFERS OUT (454.271) NET INCOME 3.158.987 RETAINED EARNINGS, JANUARY 1 21.487.010 RETAINED EARNINGS, DECEMBER 31 $ 24,623,977 See Notes tnFinancial Statements. CITY OFELK RIVER, MINNESOTA COMBINED STATEMENT 0FCASH FLOWS ALL PROPRIETARY FUND TYPES YEAR ENDED DECEMBER 31, 2000 NET CASH USED BYNDNC8P|TALFINANCING ACTIVITIES (515.288 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of fixed assets (2.396,016) Principal paid onbonds (490'000) Interest paid onbonds (395.299) NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES (3.281,315) CASH FLOWS FROM INVESTING ACTIVITIES Interest oninvestments 461 s87 NET INCREASE |N CASH AND CASH EQUIVALENTS 1'350,426 CASH AND CASH EQUIVALENTS, JANUARY 1 6.551.484 CASH AND CASH EQUIVALENTS, DECEMBER V1 $ 7.901.890 ===== SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Amortization ofbond discount $ 8.898 Disposal offixed assets 129.292 See Notes umFinancial Statements. 9 Enterprise Funds CASH FLOWS FROM OPERATING ACTIVITIES -------- Operating income $ 1.708,560 Adjustments zoreconcile operating income tnnet cash provided byoperating activities Other income related to operations 1.815,053 Depreciation 1.392.080 (Kmcnsaue) decrease imassets: Accounts receivable (75.831) Other receivables (84.754) Due from other funds 769 Inventories (224) Prepaid items 7.511 Increase (decnmmse)in liabilities: Accounts payable (98.914) Salaries and benefits payable (10.151) Due tuother funds <83.897> Customer deposits 7.865 Deferred revenue {2.045) NET CASH PROVIDED BYOPERATING ACTIVITIES 4.685.442 CASH FLOWS FROM NUmCAP|TALFINANCING ACTIVITIES Due from component un* 225.000 Operating transfers toother funds (454.271) Transfers uorestricted funds (286.017) NET CASH USED BYNDNC8P|TALFINANCING ACTIVITIES (515.288 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of fixed assets (2.396,016) Principal paid onbonds (490'000) Interest paid onbonds (395.299) NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES (3.281,315) CASH FLOWS FROM INVESTING ACTIVITIES Interest oninvestments 461 s87 NET INCREASE |N CASH AND CASH EQUIVALENTS 1'350,426 CASH AND CASH EQUIVALENTS, JANUARY 1 6.551.484 CASH AND CASH EQUIVALENTS, DECEMBER V1 $ 7.901.890 ===== SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Amortization ofbond discount $ 8.898 Disposal offixed assets 129.292 See Notes umFinancial Statements. 9 W-JZill ;4 ; CITY OFELK RIVER, K8lNNE8OTA NOTES TOFINANCIAL STATEMENTS DECEMBER 31,2OOO Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. City Structure and Scope of the Entitty TheCdxofBkRivernperatesumderthe"0mtiona|Plan/Y'foxmcfgovemnnnentasdefimedin0l8 Minnesota Statutes. Under this plan, the government Vfthe City iedirected bva Council composed mfamelected Mayor and four elected Council Members. The Council exercises legislative authority and determines all matters ufpolicy. The Council appoints personnel responsible for the proper administration of all affairs relating to the City. As required by generally accepted accounting principles, the financial statements ofthe reporting entity include those ofthe City ofElk River (the primary government) and its component units. The Elk River Public Utilities Commission isconsidered bube part ofthe primary government. The Elk River Public Utilities Commission was eatabUiahedand statutory authority is provided in accordance with Chapter 412.321nfthe Minnesota Statutes. The Commission has three Council approved members who serve overlapping three year terms. The statutes provide the City Council all the discretionary authority necessary to operate the utilities except omits powers have been delegated tothe Commission. The Utility Funds are included with the enterprise funds nf this report. Separate financial statements for the Utilities may be obtained at the Elk River Public Utilities office. 322King Avenue, Elk River. ComDomentUnits Component units are legally separate organizations for which the City is financially accountable and are included within the financial statements of the City because of the significance of their operational urfinancial relationships with the City. The City isconsidered financially accountable for mcomponent unit if (1)itappoints ovoting majority ofthe organization's board and iaable to impose its will on the organization or is in a rellationship of financial benefit or burden with the organization, (2)orthe organization isfiscally dependent onthe City. Blended component units, are insubstance, part ufthe government's operations and soare reported as ifthey were part ofthe primary government, Discretely presented component units, an the other hand, are reported in a separate column in the combined financial statements to emphasize |tislegally separate from the primary government and todifferentiate their financial position and results ofoperations. Included: Blended CommmnemtUnit The Economic Development Authority (EDA) was created tocarry out economic and industrial development and redevelopment within the City imaccordance with policies established bvthe City Council. The seven member board consists ofthree Council Members, the Mayor and three other council approved members. The EDA may not exercise any ofits authorized powers without prior approval ofthe City Council. The activities mfthe EDA are blended and reported eaaspecial revenue fund. Separate financial statements are not prepared for the EDA. 10 Note 1: CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES •- CONTINUED C. Basis of Accountina (Continued) The modified accrual basis of accounting is used by all governmental fund types and agency funds. Under the modified accrual basis of accounting, revenue is recognized when susceptible to accrual (i.e., when it becomes both measurable and available). "Available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The government considers property taxes as available if they are collected within 60 days after year end. Special assessments are recognized as revenue as the principal amount is collected. Substantially all other sources of revenue are accrued including interest, charges for services and local gravel and solid waste taxes. Fines, permits and licenses are not susceptible to accrual because generally they are not measurable until realized in cash. Expenditures are generally recorded when the related fund liability is incurred except principal and interest on general long-term debt which are recorded as fund liabilities when due and prepaid items which provide benefit to periods beyond the current year. Proprietary funds are accounted for using the accrual basis of accounting. Their revenue is recognized when it is earned, and their expenses are recognized when they are incurred. The City applies all applicable FASB pronouncements issued on or before November 30, 1989 in accounting and reporting for its proprietary operations. Fixed assets are recorded in the proprietary funds at historical cost. Depreciation is charged as an expense against operations and accumulated depreciation is reported on proprietary fund balance sheets. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows-, Buildings 25 - 50 years Plant and Production 5 - 50 years Collection and Distribution 20 - 50 years Equipment, Furniture and Fixtures 5 - 20 years The preparation of general purpose financial statements in conformity with generally accepted accounting principles require management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. •s - Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the general and some special revenue funds, which is further explained in Note 13. All annual appropriations lapse at fiscal year end. Project -length financial plans are adopted for all capital projects funds. The City follows these procedures in establishing the budgetary data reflected in the financial statements: Prior to January 1, the budget is adopted by the City Council. 2. Formal budgetary integration is employed as a management control device during the year for the General Fund and some Special Revenue Funds. 3. All budget amendments are presented to the City Council for approval. 13 CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED D. Budqets (Continued) 4, Reported budget amounts are as originally adopted or as amended by Council approved supplemental appropriations and budget transfers. Supplemental budgetary appropriations were not material in: 2000 in relation to the original budget appropriati:on, E. Encumbrances Encumbrance accounting is used for the General Fund. Encumbrances are recorded when: purchase orders are issued but are not considered expenditures until liabilities for payments are incurred. Encumbrances are reported as a reservation of fund balance on the balance sheet. Encumbrances do not lapse at the close of the fiscal year but are carried forward, as reserved fund balance until liquidated. F. Cash and Investments Cash and investments include demand deposits and short-term investments. The City invests cash balances from all funds, to the extent available, in certificates of deposit and other authorized investments. Investments are carried at fair value. G. Cash and Cash Equivalents For purposes of the statement of cash flows of the Enterprise Funds all cash and investments with a maturity of three months or less when purchased are considered to be cash equivalents. The restricted assets in the Enterprise Funds are investments with maturities exceeding the three month period. H. Inventories Inventories are valued at cost, which approximates market, using the first-in/first-out (FIFO) method. Prepaid Items Payments made to vendors for service that will benefit periods beyond December 31, 2000 are recorded as prepaid items. Restricted Assets Certain assets of the Electric Enterprise Fund are set aside for emergency and construction in accordance with Commission resolutions. K. Fixed Assets General fixed assets are not capitalized in the funds used to acquire or construct them. Instead, capital acquisition and construction are reflected as expenditures in governmental funds, and the related assets are reported in the general fixed assets account group. All purchased fixed assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated fixed assets are valued at their estimated fair market value on the date received. 14 CITY C)FELK RIVER, MINNESOTA NOTES TOFINANCIAL STATEMENTS DECEMBER 31.2OQO Note 1: SUMMARY OFSIGNIFICANT ACCOUNTING POLIC|ES-CONTINUED K. Fixed Assets (P�qntinued) Public domain ne1general fixed assets consisting ofroads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are not capitalized, as these assets are immovable and cfvalue only hathe government. Assets inthe general fixed asset account group are not depreciated. Depreciation of buildings, production, collection and distribution systems, and equipment and vehicles in the proprietary fund types iscomputed using the straight-line method. The costs nfnormal maintenance and repairs inthe proprietary fund types that donot add hmthe value ofthe asset urmaterially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets. L. Comoensated Absences Vested accumulated vacation and sick leave that is expected bobeliquidated with expendable available financial resources isreported asanexpenditure and afund liability ofthe governmental fund that will pay it. Amounts ofvested oraccumulated vacation and sick leave that are not expected tobeliquidated with expendable available financial resources are reported inthe general long-term debt account group. Nuexpenditure iareported for these amounts, Vested or accumulated vacation leave of proprietary funds is recorded as an expense and liability of those funds aothe benefits accrue to employees. Noliability iorecorded for nonvestingaccumulating rights toreceive sick pay benefits. M. Lon -.t 0 ligations Long-term debt is recognized aseliability ofegovernmental fund when due, or when resources have been accumulated inthe debt service fund for payment early inthe following year. For other long-term obligations, only that portion expected tobe financed from expendable available financial resources isreported esafund liability ofogovernmental fund. Long-term debt and other nb||gotioms financed byproprietary fund operations are reported aa liabilities in the appropriate funds. For governmental fund h/pen, bond premiums and disoounts, as well as issuance couts, are recognized during the current period. Bond proceedseme reported aaanother financing source net ofthe applicable premium ordiscount. Issuance costs, other than those withheld from the actual net proceeds received, are reported aadebt service expenditures. For proprietary fund types, bond premiums and discounts, eewell asissuance costs, are deferred and amortized over the life Vfthe bonds using the straight-line method. Discounts and issuance costs are reported as deferred charges. N. Fund E it Contributed capital is recorded in proprietary funds that have received capital grants or contributions from dewe|opecs, customers orother funds. Reserves represent those portions of fund equity not appropriable for expenditure orlegally segregated for especific future use. Designated fund balances represent tentative plans for future use of financial resources. 15 CITY OFELK RIVER, MINNESOTA NOTES TOFINANCIAL STATEMENTS DECEMBER 31.2QOO Note 11: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED [l |mtexfundTransaodon Quasi -external transactions are accounted for as revenue and expenditures or expenses. Transactions that constitute reimbursements boafund for expenditures/expenses in0a|lymade from it that are properly applicable huanother fund are recorded as expend ihures/expenses inthe reimbursing fund and asreductions of expend itures/expenses inthe fund that isreimbursed. All other interfumdtransactions, except quasi -external transactions and reimbursements, are reported as transfers. Nonrecurring mnonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. P, Memorandum Only - Total Columns Total columns onthe general purpose financial statements that are captioned "memorandum only" indicate they are presented only tnfacilitate financial analysis, Data inthese columns dnnot present financial position, results of operations or changes in cash flows in conformity with generally accepted accounting principles. Neither are such data comparable toa consolidation. Umterfundeliminations have not been made inthe aggregation ofthiadata. Q. Comparative Data/Reclassifications Comparative total data for the prior year have been presented imthe accompanying financial statements in order to provide an understanding of changes in the government's financial position and operations. However, comparative data have not been presented inall statements because their inclusion would make certain statements unduly complex and difficult to understand. Certain amounts presented inthe prior year data have been reclassified to conform with the current year's presentation, Note 2: LEGALCOMPLkANCE-BWOGETS On or before July 1 of each year, all agencies of the government submit requests for appropriation to the City's administrator eothat abudget may beprepared. The budget baprepared bvfund, function, and activity and includes information qmthe past year, current year estimates, and requested appropriations for the next fiscal year. Before September 15.the proposed budget iepresented to the government's council for review. The government's council holds public hearings and may add to, subtract from urchange appropriations. Any changes in the budget must be within the revenue and reserves estimated as available or the revenue estimates must be changed by an affirmative vote by a majority of the government's council. Expenditures may not legally exceed budgeted appropriations at the fund level without Council approval. Spending control imestablished bythe amount ofexpenditures budgeted for the fund, but management control |sexercised atthe line item level. During the year, supplementary appropriations were not material. 16 CITY {}FELK RIVER, MINNESOTA NOTES TDFINANCIAL STATEMENTS DECEMBER 31.2U0O Not 3: DEPOSITS AND INVESTMENTS Cash surpluses are pooled and invested incertificates ofdeposit and short-term government securities Investment earnings are allocated tofunds onthe basis ofaverage cash balances. Investments are stated at fair value based on quoted market price and are not identified with specific funds. Qev_g��Its In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized bvthe City Council, all mfwhich are members ofthe Federal Reserve System. K8imneaoh* Statutes require that all City deposits be protected by insurance, surety bond. or collateral. The market value ofcollateral pledged must equal 11O96mfthe deposits not covered bvinsurance or bonds (14O96inthe case ofmortgage notes p|edged). Authorized collateral includes the legal investments described below, as well as certain first mortgage notes and certain other state orlocal government obligations. 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. At year end, the City's carrying amount of deposits, was $5,800,841 and the bank balance was $5,837.871 Dfthe bank balance, $1.287.000was covered bvfederal depository insurance and $4,550,673 was covered by collateral held by the City's agent in the City's name. The carrying amount ofdeposits for the HRA, adiscretely presented component unit, was $93,005 and the bank balance was $93.805. The bank balance was covered byfederal depository insurance. Investmentsi The City also invests idle funds, oeauthorized byN1inneeuteOtatubee.aefV|lowe a. Direct obligations orobligations guaranteed bythe United States orits agencies h. Shares of investment companies registered under the Federal Investment Company Act of 194Oand whose only investments are insecurities described in(g)above. C. Bankers acceptances ofUnited States Banks eligible for purchase bythe Federal Reserve System. d. Commercial paper of the highest quality issued by United States corporations or their Canadian subsidiaries and maturing in27Odays orless. e. Repurchase agreements with banks that are members of the Federal Reserve System with capita|izationexceeding$1O.U00.0O0.aprimarynapurUngdeakarinU.S.0mvernnlent securities tothe Federal Reserve Bank mfNew York orcertain Minnesota securities broker-dealers. The City's investments are categorized to give enindication of the level ofrisk assumed at yearend. Category includes investments that are insured or registered or for which the securities are held by the City orits agent inthe City's name, Category 2includes uninsured and unregistered investments for which the securities are held bythe oounterparty's trust department oragent inthe City's name. Category 3 includes uninsured and unregistered investments for which the securities are held bythe onunterparty's trust department oragent but not inthe City's name. 17 CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 Note 3: DEPOSITS AND INVESTMENTS — CONTINUED The city's investment in the Minnesota Municipal Money Market Fund and the I.I.S. Government Mutual Fund is valued at fair value and is the same as the value of the pool shares. The City and its component unit cash and investment balances at December 31, 2000: Prima.. y. overnment: Securities —Credit Risk Cater ory Carrying Value T!pe... .......... 1 2 _ _..__ and Fair Value U.S, government $ 9,110,437 $ - $ - $ 9,110,437 Municipal bonds 129,853 _ - 129,853 Commercial paper 110,029,.102 _ ........ - 10,029J02 $19,269,392 $ - 19,269,392 Minnesota Municipal Money Market Fund 1,459,697 U.S. Government Mutual Fund 251,092 Total investments 20,980,181 Deposits 5,800,841 Cash on hand 3,815 Total cash and investments $26,784,837 Co onent unit: Deposits $ 93,005 They are reported on the combined balance sheet as follows: Primary government; Cash and investments $23,598,417 Cash with fiscal agent 1,975,656 Restricted asset - investments 1,21,..0_,.764 Total primary government $26,784,837 Qq_r ppnent unit: Cash and investments $ 93,005 Total cash and investments $26,877,842. 18 CITY [)FELK RIVER, MINNESOTA NOTES TDFINANCIAL STATEMENTS DECEMBER 31.200O Not 4: RECEIVABLES E�Lgpgrty Taxes The City Council annually adopts etax levy and certifies itbothe County inDecember each year for collection the following year. The County isresponsible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable property as of January 1 and are payable by the property owner in May and October each year. The taxes are collected by the County Treasurer and tax settlements are made to the City three times a year, in January, July and December. Taxes payable on homestead property, as defined by State Statutes, are partially reduced by homestead and agricultural credit aids. These credits are paid to the City by the State of Minnesota in lieu uftaxes levied against homestead property. The State remits this credit intwo equal installments im July and December each year. Allowances are provided for the full amount ofdelinquent taxes except those collected bythe County in November and December and remitted tothe City within sixty days after year end. This allowance is reported onthe balance sheet aodeferred revenue. Special & Special assessments receivable include the following components: m DelinquenL-inc|udes amounts billed toproperty owners but not paid. • Deferred includes assessment installments that will be billed to property owners in future years. Special assessments are recognized as receivable and deferred revenue when the levy against the benefited property is adopted by the City Council and certified to the County for collection. The assessment revenue isrecognized when realized incash. Notes Receivable The City established a Revolving Loan Special Revenue Fund with the proceeds of grants received from the State ofK&imnesota. These funds have been loaned toseveral businesses, The terms cf repayment vary with each loan. The total notes receivable atyear end was $865.Q46. Under terms of the grant agreement, a portion of the original grant will be returned to the State of Minnesota and is reported asadue tVother governments liability. The remaining portion of the notes receivable is offset by deferred revenue, Thua, revenue iorecognized when received in cash. The City established a Department of Trade and Economic Development (DTED) Grant/Loan Special Revenue Fund with the proceeds ofgrants received from the State ofMinnesota. These funds have been loaned toone business. The terms ofthe loan are ten years with ovariable interest rate. The total note receivable sdyear end was $QQ.377. The City retains all ofthe grant repayments. The remaining portion ofthe note receivable isoffset bydeferred revenue. Thus, revenue isrecognized when received incash. Accounts Receivable Accounts receivable include amounts billed for services provided before year end. 19 Note 4: Note 5: CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 RECEIVABLES - CONTINUED Due To/From Other Funds The Capital Projects and Trunk Utilities Expansion Capital Projects Funds were used to provide the interim financing for Special Revenue and Capital Projects Funds, As permanent financing sources for these funds are obtained, the balances advanced from the Capital Projects and Trunk Utilities Expansion Funds will be repaid. Advances totaled $1,964,135 at year end. The Utilities Commission is responsible for the billing and collection of garbage and sewer fees collected through the Electric Enterprise Fund and transferred monthly to the City's Garbage Collection and Sewage Disposal Enterprise Funds. The interfund balances at year end are $49,751 and $77,809, respectively. Additional interfund receivables and payables result from the reimbursement of expenditures incurred in other funds. The expenditures to be reimbursed at year end totaled $318,370. The detailed schedule of interfund receivables and payables by fund are summarized in Note 14. Due From Other Governments � ........ ..... Amounts due from other governmental units as of December 31, 2000 include the following: General Fund - State Grant - Safe/Sober $ 2,904 County Reimbursements 23,752 School District Reimbursements 8,443 Special Revenue Funds - 178,084 Ice Arena - Various 38,012 Capital Outlay Reserve - County Reimbursement 205 Capital Projects Funds - 17,621 East Hwy 10 Improvements - MSA Reimbursement 5 2 ........... i. -U301 — Total All Funds $605,617 FIXED ASSETS The following is a summary of changes in the general fixed assets account group during the year: Balance Balance 4-qm4ry 1 Additions Dispositions December 31 December . ...... . ... . .... Land $ 3,651,690 $1,058,200 $ 496,345 $4,213,545 Buildings and structures 8,643,147 178,084 672,473 8,148,758 Other improvements 851,985 612,803 17,621 1,447,167 Furniture and equipment 4,515,390 1,155,033 1,068060 4,602,363 Total general fixed assets $17,6612,212 $3,0110411,1121P $2,254,499 $18,411,833 W Note 6: Note 6: CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 FIXED ASSETS - CONTINUED A summary of proprietary fund fixed assets at December 31, 2000 follows: Land and improvements Buildings Plant and production Collection and distribution Equipment, furniture and fixtures Total Less accumulated depreciation Net fixed assets Sewage Liquor _Ns_posal Water Electric Total $ 823,761 $ 411,095 $ $ $ 1,234,856 1,394,887 - 1,394,887 - 8,556,723 5,189,574 2,847,614 16,593,911 - 2,234,480 1,677,911 14,741,998 18,654,389 149,2_03 _271,982 _.74 �41 Z _ww3,249,875 _2,754,278 2,367,851 11,474,280 6,941,897 20,343,890 41,127,918 443,128, 41446,327 �1 511,016 8444,28 1,„4,844,759 $1,924,723 $7,027,953 $5,430,881 $11,899,602 $26,283,159 The following are included as long-term debt of the City'. A contract for deed of $465,000 was entered into in 1999 to finance the purchase of property. The contract is payable over five years with interest at 7% and is to be financed with development fund revenues. A state loan of $487,377 was received in 1981 for the repair of Orono Dam pursuant to Minnesota Statutes. This loan is payable over twenty years through March 1, 2001, together with interest at 8.374% and is to be financed through special assessments against benefiting properties and ad valorem taxes. General obligation bonds ”have been issued to provide for the acquisition and construction of major capital facilities. General obligation bonds have also been issued to refinance other general obligation bonds. The general obligation bonds are backed by the full faith and credit of the City. General obligation tax increment bonds were issued in accordance with Minnesota Statutes. The bond proceeds were used to finance certain capital: and administrative costs within the tax increment district. It is anticipated that the captured tax capacity of the district will derive sufficient property taxes to retire the bonds as they come due. If such captured tax capacity is not sufficient, general ad valorem taxes will be levied as needed. The bonds are backed by the full faith and credit of the City. General obligation equipment certificates of indebtedness were issued to finance the purchase of public safety, public works and other capital equipment in accordance with Minnesota Statutes. The certificates are to be repaid over a period not exceeding five years. The certificates are an obligation backed by the full faith and credit of the City. General obligation special assessment 'bonds were issued to finance various improvements in accordance with Minnesota Statutes. All or a portion of the benefits are assessed against the benefiting properties. The bonds are general obligations of the City and are backed by its full faith and credit, 21 Nate 6: CITY OF ELK. RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 LONG-TERMOBLIGATIONS - CONTINUED Economic Development Authority (EDA) revenue bonds were issued to finance the construction of a city hall/law enforcement facility in accordance withMinnesotaStatutes 469.103. The City entered into a lease purchase agreement with the EDA and intends to continue this lease for the entire lease period, which coincides with the repayment schedule of the bonds issued. The bonds are payable solely from rental revenues generated by the facility and are not backed by the full faith and credit of the City. Economic Development Authority (EDA)revenue refunding bands. were issued to refund the 2001 through 2011 maturities of the EDA revenue bonds in order to reduce total future debt service payments. The bonds will be payable solely from rental revenues generated by the facility and are not backed by the full faith and credit of the City. Ice arena bonds consist of bonds issued to finance the construction and expansion of an indoor ice arena. The bonds are payable from ice arena revenues but are backed by the full faith and credit of the City. Storm sewer revenue bonds consist of bonds issued to finance repair and construction of various drainage projects. The bonds are payable from revenues but are backed by the full faith and credit of the City. Liquor revenue bonds consist of bonds issued to finance the construction of a new liquor store. The bonds are payable from revenues but are backed by the full faith and credit of the City. Sewer revenue bonds consist of bonds issued to finance the expansion of the wastewater treatment plant. The bonds are payable from revenues but are backed by the full faith and credit of the City. Water revenue bonds consist of bonds issued to finance water system expansion. The bonds are payable from revenues but are backed by the full faith and credit of the City. Electric equipment certificates were issued to finance the purchase of a transformer. The certificates are payable from revenues but are backed by the full faith and credit of the City. The following is a summary of changes in Fang -term debt for the year ended December 31, 2000: W Balance Debt Principal Balance January 1 Issued Retired December 31 General Long -Term Debt: Compensated absences $ 269,692 $ 49,379 $ - $ 319,071 Contract for deed 411,800 - 82,409 329,391 State loan 90,536 - 43,449 47,087 Bonds and certificates 1,541,925 1,508,200 801,175 2,248,950 Special assessment bonds 13„575,000 2,175,000 2,110,000 13,640,000 EDA revenue bonds 135,000 - 135,000 - EDA revenue refunding bonds 2„295,000 - - 2,295,000 Ice arena bonds 1,895,000 - 90,000 1,805,000 Storm sewer revenue bonds 825,000 - 65,000 760,000 Total general -long term debt 21038,953 3,732 579 3,327,033 21,444,499 W CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 Note 6: LONG-TERM OBLIGATIONS - CONTINUED Total long-term debt $28,401,4513 Debt Principal Balance Issued Retired . . ........... January 1 Enterprise Funds: $1,000,000 Liquor revenue bonds $ 1,080,000 Sewer revenue bonds 3,355,000 Water revenue bonds 2,755,000 Electric equipment certificates 172,500 Total enterprise fund debt _7I30?,500 Total long-term debt $28,401,4513 Debt Principal Balance Issued Retired . . ........... December 31 $ - $ 80,000 $1,000,000 - 170,000 3,185,000 - 185,000 2,570,000 - 5510_00, 117,500 490,000 6y8�72500 $3,732,579 $3,817,033 $28,3116,999 The long-term debt obligations outstanding at December 31, 2000 are summarized as follows: Interest Balance Types of Debt Maturities Rate December 31 . .. ....... - ..Re I". a ". � General obligation debt 2001 -2004 General obligation tax increment bonds 2001 -2015 Special assessment bonds 2001 -2016 Revenue bonds - Liquor 2001 -2007 Sewer 2001 -2016 Water 2001 -2014 Electric equipment certificates 2001 -2002 Storm sewer 2001 -2009 EDA refunding 2001 -2011 Ice Arena 2001 -2013 5.00-6.80% 4.50-9.90 2.75-6.25 6.35 5.00 - 5.80 2.75-6.50 4.68 5.40-5.80 4.75-5.00 5.70 Total bonded debt Other Loqg::terM_P.e bt State loan 2001 8.374 Contract for deed 2001 -2004 7.00 Total other long-term debt Total long-term debt outstanding (excluding compensated absences) 23 $ 612,450 1,636,500 13,640,000 1,000,000 3,185,000 2,570,000 117,500 760,000 2,295,000 1,405,.Ppp 2 �76 2 145Q 47,087 329,391 3 _ ..T§ �478 $27,997,928 Note 6: CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 LONG-TERM OBLIGATIONS - CONTINUED The annual requirements to amortize all bonded debt outstanding at December 31, 2000, including interest payments totaling $8,613,113 are as follows: The annual requirements to amortize all other long-term debt outstanding at December 31, 2000, including interest payments totaling $511,286, are as follows: Year Ending G.O. Bonds G.O. Special December 31, Loan Year Ending and Assessment Revenue 2002 December 31 Certificates Bonds Bonds Total ............ . ................... — 2001 $ 454,312 $ 2,100,861 $ 1,462,804 $ 4,017,977 2002 351,908 2,035,375 1,509,625 3,896,908 2003 303,0114 2,092,045 1,444,705 3,839,764 2004 302,262 1,931,511 1,454,620 3,688,393 20015-2008 845,021 4,910,554 5,539,703 11,295,278 2009-2012 426,446 2,648,705 3,225,249 6,300,400 2013-2016 253,752 ..... . .... . ..... ...... ... . . .............. ... 1 9g ........ _,L31,�L 3,195,843 Total $2,936,715 $17,450,941 $15,846,907 $36,234,56$ The annual requirements to amortize all other long-term debt outstanding at December 31, 2000, including interest payments totaling $511,286, are as follows: Year Ending State Contract December 31, Loan for Deed . . .... . ..................... --- 2001 $51,030 $108,051 2002 - 109,514 2003 109,514 2004 — — - _49&55 Total $51,030 $376,7134 The Debt Service Funds have a reserved fund balance of $6,039,757 available at year end to service general long-term debt. Amounts to be provided for debt retirement on the balance sheet will be derived primarily from scheduled future tax levies, tax increments and special assessments. The City's statutory debt limit is computed as two percent of the taxable market value of property within the City. Long-term debt issued and financed partially or entirely by special assessments or the net revenues of enterprise fund operations is excluded from the debt limit computation. The amount of outstanding debt at year end which is applied against the statutory debt limit is $612,450. In 1997, the City issued $2,295,000 in EDA Revenue Refunding Bonds to advance refund the City Hall and Law Enforcement Facility Revenue Bonds, Series 1991. The net proceeds were used to purchase U.S. government securities and deposited in an irrevocable trust with an escrow agent to provide for future interest payments on the new bonds through February 1, 2000. As of December 31, 2000, all bonds from the 1991 Series have been paid. 24 CITY OFELK RIVER, MINNESOTA NOTES TOFINANCIAL STATEMENTS DECEMBER 31.2OOO Note 6: LONG-TERMQBUGAT|QNS-CONTNUED During 1999 the City defeasedthe General Obligation Improvement Bonds, Series 1994E by depositing debt service fund reserves into amirrevocable trust tnprovide for all future debt service payments on the defeoaedbonds. Accordingly, the trust account assets and the liability for the dafeooedbonds are not included inthe City's financial statements, AsofDecember 31.2O0O.the balance ofthe defeaeed debt ia$1.O3D.OQD. In 1999 the City issued $580,000 General Obligation Refunding Bonds, Series 1999B and contributed cash held in the debt service fund to provide funds to redeem the General Obligation Improvement Bonds, Series 19S4A. The proceeds and the City's cash contribution are held in an escrow account and invested inUSgovernment securities. The securities will beused toprovide for future interest payments on the new bonds until the call date of the Series 1994A bonds on February 1, 2001 � The City will continue bmpay the original debt service nnthe Series 18A4Abonds until the call date, atwhich time the securities in the escrow account will be used to prepay the refunded bonds. Beginning with the August 1.2OQ1 payment, the City will crossover and begin to make the debt service payments on the refunding issue. Since this iomcrossover advance refunding, the assets held intrust bythe escrow agent are reported in the debt service fund and the liabilities for both the refunding bonds and the refunded debt are reported in the general long-term debt account gnoup, pending the crossover date. On November 16, 2000, the City issued $900,000 General Obligation Refunding Bonds, Series 2000C with net interest rate of4.8896tocurrent refund the $2.35O'OQOGeneral Obligation Bonds. Series 19Q2Awith anet interest rate of8.O2%, The proceeds plus anadditional $181.4S7ofdebt service fund reserves were used topurchase U.S.government securities. Those securities were deposited inan irrevocable trust with an escrow agent to provide for future debt service payments on $1,075,000 of the Series 19S2Abonds. /\earesult, the Series 1092Abonds are considered tobedefeaaedand the liability for those bonds has been removed from the City's financial statements. The City refunded the 1992A Series bonds to reduce its total debt service payments by $270,218 and to obtain an economic gain, after accounting for the cash contribution, nf$4U.184. Also inNovember 2000, the City issued $510,000 General Obligation Tax Increment Refunding Bonds, Series 2000D with e net interest rate of7 38% to current refund the General Obligation Tax Increment Bonds, Series 198ABwith anet interest rate ufS31%and Series 188OAwith mnet interest rate of 9,85%totaling $5QO,OD0The bond proceeds were invested imU,S,government securities and deposited in an irrevocable trust to provide for the payment of principal and interest on the refunded bonds, As a result, the trust account assets and the liability for the defeased bonds are not included in the City's financial statements. The City refunded the Series 1888B and 1990A bonds to reduce its total debt service payments by$41.463and toobtain aneconomic gain of $30.282. 10 NTM�0101 0 1 oil] 19 314 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 hobeinthe public interest. The bonds are secured bythe property financed and are payable solely from payment received omthe underlying mortgage loans. Upon repayment nfthe bonds, ownership cf the acquired facilities transfers tuthe private -sector entity served bythe 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 asliabilities imthe accompanying financial statements. AeofDecember 31.2OQO.there were six series cfindustrial revenue bonds outstanding, with an aggregate principal amount payable of $20,705,000. 25 CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 Note 8: FUND EQUITY The various components of fund equity are contributed capital, retained earnings, and fund balance. Contributed Capital - The amount represents the value of assets contributed to the enterprise funds by other City funds and developers. The balances are as follows: Sewage Disposal Water Electric Total. Balance, December 31 $2,687,733 $1,061,925 $1,245,039 $4,994,697 Retained d Earnina .............. _ § - The amount represents the portion of retained earnings legally segregated for a specific future use. Reserved Fund Balance - This represents the portion of fund balance which cannot be appropriated for future expenditures. Designated Fund Balance - Designated amounts indicate tentative plans for future uses of financial . . ............... ....... resources. Unreserved and undesignated amounts are available to finance current and future years' expenditures. The following reservations and designations of fund equity have been made as of December 31, 2000: General Fund - Designated for working capital $2,695,612 Special Revenue Funds - Reserved for prepaid items $ 43,732 Reserved for development projects 750,042 Reserved for trail development 188,441 Reserved for building debt 945,146 Designated for capital outlay 918,856 Total Special Revenue Funds 2,846,217 Debt Service Funds - Reserved for Debt Service $6,039,757 Capital Projects Funds - Reserved for western area utilities $ 560,356 Designated for capital projects 2,345,843 Total Capital Projects Funds $2,906AI99 Electric Enterprise Fund Retained earnings - Reserved for emergency $ 85,000 Reserved for construction 1,125,764 Total Electric Enterprise Fund $1,210,764 26 CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 Note 9: SEGMENT INFORMATION - PROPRIETARY FUNDS Garbage Municipal Sewage Collection LNquor _ _Djsposal Water Electric Gross profit and charges for services Operating expenses excluding depreciation Income before depreciation Depreciation Operating income Nonoperating revenue less expenses Income before transfers Transfers to other funds Net income Net working capital Additions to property, plant and equipment Bonds payable from operating revenue Total assets Total equity tam $686,815 $941,722 $877,655 $755,462 $9,389,846 $12,651,500 (79.1..,.043) (3755.33) (4; 7923) L429,776)7 ,6(15) x9,490,940) (104,228) 566,189 439,732 325,686 1,933,181 3,160,560 ...... . ..... . ........... - (75,664) (31_x,946)18( 5,266) 92�000) — _ (812J24) 0�1 (104,228) 490,525 120,786 140,420 1,121,057 1,768,560 124,571 5 977 537,878478,029 1,842 � �68 20,343 496,502 758,664 618,449 1,717,280 3,611,238 . . .. . . .........t146 4_00) X20) 336) (56,6Z1)— _IZK K. ....{454271) $ 20,343 $350,102 $738,31218 $5611,828 $1,456,3166 $3,156,967 Garbage Municipal Sewage Collection Ljqu€�. Disposal Water Electric Total . . . .... ....... . . $245,500 $1,523,663 $3,321,039 $1,186,983 $2,116,260 $8,393,445 9,985 99,143 506,791 1,780,097 2,396,016 - 1,000,000 3,185,000 2,570,000 117,500 6,872,500 315,135 3,764,618 10,601,275 7,425,777 15,608,609 37,715,414 245,500 2,528,386 7,382,598 4,725,076 14,737,114 29,618,674 27 CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 Note 10: LEGAL COMPLIANCE Ftind di-.finits The following funds have deficit fundbalances as of December 31, 2000: Capital Projects Funds - East Highway 10 Improvements $1,519,409 Tax Increment Financing Districts 345,968 The deficits in the Capital Projects Funds will be eliminated as financing sources are received in 2001. Expenditures were in excess of budget for the year ended December 31, 2000 in the following funds: The variances were funded by revenue in excess of budget and available fund balance. Note 11: DEFINED BENEFIT PENSION PLAN -STATEWIDE A. Plan Description All full-time and certain part-time employees of the City of Elk River are covered by defined benefit pension plans administered by the Public Employee Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF), the Public Employees Police and Fire Fund (PEPFF), and the Local Government Correctional Service Retirement Fund (LGCSRF), which are cost-sharing, multiple -employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, fire fighters and peace officers who qualify for membership by statute are covered by the PEPFF. �PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. 28 .. lqq1get Actual Variance Special Revenue Funds - Ice Arena Fund $298,150 $397,288 $99,138 Landfill Fund 13,850 32,377 18,527 Economic Development Authority 181,100 195,166 14,066 The variances were funded by revenue in excess of budget and available fund balance. Note 11: DEFINED BENEFIT PENSION PLAN -STATEWIDE A. Plan Description All full-time and certain part-time employees of the City of Elk River are covered by defined benefit pension plans administered by the Public Employee Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF), the Public Employees Police and Fire Fund (PEPFF), and the Local Government Correctional Service Retirement Fund (LGCSRF), which are cost-sharing, multiple -employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, fire fighters and peace officers who qualify for membership by statute are covered by the PEPFF. �PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. 28 CITY OFELK RIVER, MINNESOTA NOTES TOFINANCIAL STATEMENTS DECEMBER 31.200D Note11: DEFINED BENEFIT PENSION PLAN -STATEWIDE –CONTINUED Two methods are used to compute benefits for PERF'aCoordinated and Basic Plan members. The retiring member receives the higher ofastep-rate benefit accrual funmu|a(Method1)oro level accrual formula (Method 2). Under Method 1.the annuity accrual rate for gBasic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for oCoordinated Plan member ia1.2percent mf average salary for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 17percent for Coordinated Plan members for each year ofservice. For PEPFFmembers, the annuity accrual rate ie3Opercent for each year otservice. For all PEPFFand PERF members whose annuity iocalculated using Method 1`afull annuity is available when age plus years cf service equal AQ. Aneduoed retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A normal annuity is lifetime annuity that ceases upon the death of the retiree—no survivor annuity is payable. There are also various types mfjoint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order toqualify for a deferred annuity etretirement age. Refunds ofcontributions are available at any time tumembers who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Veated, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect atthe time they last terminated their public service. PEFlA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF That report may be obtained by writing to PERA. 514 St. Peter Street #200. St. Pau|, Minnesota, 55102orby calling (651) 296-7460 or 1-800-652-0026. Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Theme statutes are established and amended by the state legislature. The City makes annual contributions tothe pension plans equal tothe amount required bystate statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 8.7596 and 4 7596. respectively, oftheir annual covered salary. PEPFFmembers are required tocontribute 8.2O%Vf their annual covered salary. The City ierequired tVcontribute the following percentages ofannual covered payro8� 11.4396 for Basic Plan PERF members, 5.1896for Coordinated Pian PERF members, and S.3O%for PEPFF members, and 8.7696for L<3CGF<F members. The City's contributions b»the Public Employees Retirement Fund for the years ending December 31.2OOD, 1998.1g88were $192.683.$1HS.64O.and $158,180, respectively. The City's contributions tothe Public Employees Police & Fire Fund for the years ending December 31.2QOO.1989.and 199O. were $132,102,$135.8S2,and $13S,3O4.respectively. The City's contributions were equal tothe contractually required contributions for each year as set by state statute. N9 CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 311, 2000 Note 12: VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION A. Plan- Description The Elk River Fire Relief Association is the administrator of a single employer public employee defined benefit retirement system (PERS) established to provide benefits for members of the Elk River Fire Department. The Fire Relief Association maintains a separate Special Fund to accumulate assets to fund the retirement benefits earned by the Fire Department's membership. Funding for the relief association is derived primarily from an insurance premium tax in accordance with, the Volunteer Firefighter's Relief Association Financing Guidelines Act of 1971 (Chapter 261 as amended by Chapter 509 of Minnesota Statutes 1980.) The Fire Relief Association issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the Elk River Fire Department Relief Association, 415 Jackson Ave,, Elk River, MN 55330. W.: The financial requirements of the Special Fund are determined in accordance with Section 69.772 of the Minnesota Statutes, which requires the payment of pension benefits in a lump sum or optionally in annual installments. The Association is comprised of volunteers and therefore members have no contribution requirements. The following summarizes the City's annual pension cost and other related information for the current year: Annual pension cost $64,092 Contributions made: City (voluntary) $22,000 State aid $64,092 Actuarial valuation date 12/31/00 Actuarial cost method Entry age normal Amortization method Level dollar closed Remaining amortization period: Normal cost 20 years Prior service cost 5 years Asset valuation method Market Actuarial assumptions: Investment rate of return 9% Projected salary increases N/A Inflation rate N/A Cost of living adjustment None 30 CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 Note 12: VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION - CONTINUED Three -Year Trend Information Required Supplementary _lnform@tton - Schedule of Funding Progress is, Annual Percentage Year Pension of APC Ending Ending .. ...... . . Cost APC Contributed 12/31/98 $59,352 100% 12/31/99 61,600 100% 12/31/00 64,092 100% Required Supplementary _lnform@tton - Schedule of Funding Progress is, Note 13: BUDGETED SPECIAL REVENUE FUNDS The following is a reconciliation of the revenue and expenditures of the Special Revenue Funds reported in Exhibit 3 with the total revenue and expenditures reported in Exhibit 2: Other Financing Revenue Expenditures Sources (Uses' Per Exhibit 3 $1,217,821 $ 674,442 $(197,137) Assets in which do not have annual budgets Excess of Pension Actuarial Actuarial Actuarial (Unfunded) Benefit Valuation Value of Accrued Percentage Accrued Per Year Date _Date Assets Liabilities Liabilities . 11- Funded - Liao Llity ..... ......... -.- of Service 12/31/98 $1,390,291 $1,155,967 120.3 $234,324 $2,674 12/31/99 1,309,219 1,134,930 118.4 174,289 2,900 12/31/00 1,273,996 1,305,344 97.6 (31,348) 3,370 Note 13: BUDGETED SPECIAL REVENUE FUNDS The following is a reconciliation of the revenue and expenditures of the Special Revenue Funds reported in Exhibit 3 with the total revenue and expenditures reported in Exhibit 2: Other Financing Revenue Expenditures Sources (Uses' Per Exhibit 3 $1,217,821 $ 674,442 $(197,137) Add Special Revenue Funds which do not have annual budgets Senior Citizen Special Account 5,218 5,681 Park Dedication 250,454 182,948 Landfill Construction Debris 141,986 - Revolving Loan 132,302 52,835 DTED Grant/Loan 36,643 - Development Fund 186,426 114,092 (21,335) Capital Outlay Reserve 165,836 221,981 103,623 Emergency/insurance Reserve 71,292 31,871 - Government Buildings Reserve 656,724 - - Street Improvement 287,434 10,428 - Drug Forfeiture Reserve 20,451 31,662 - Severance Pay Reserve 10,106 - - NSP/RDF Reserve 315,196- (122,329) Per Exhibit 2 $3,497,889 $1,32$,940 $C237,178) 31 CITY OFELK RIVER, MINNESOTA NOTES TOFINANCIAL STATEMENTS DECEMBER 31.2OO@ Note 14: |NTERF0NDRECEIVABLES AND PAYABLES, The following is a summary ofhnbarfundbalances oaofDecember 31.20]O� Due to/from other funds� Payable Receivable Fund To From General Fund $ 8.782 $ - Special Revenue Funds - Ice Arena - 138,950 Development Fund 300.000 - Capital Outlay Reserve 1.414 - Emergency/Insurance Reserve 655 - Economic Development Authority - 8,782 Capital Projects Funds - Capital Projects 533,287 - Trunk Utilities Expansion 1'438,101 - East Hwy 10 Improvements 1.844 1,793.753 Tax Increment Financing Districts - 331.432 Enterprise Funds - Garbage Collection 49,751 - Sewage Disposal 78,231 - Water - 9.522 Electric - 1129�626 Total G2,410,065 Due to/from primary government and component unit: Payable Receivable Entity To From Phmorygovemnment- Gemenm|Fund $1.771 $ - Comnpunentunit-HRA $ - $1.771 32 CITY {)FELK RIVER, MINNESOTA NOTES TDFINANCIAL STATEMENTS DECEMBER 31'2800 Note 15: RISK MANAGEMENT The City isexposed tovarious risks nfloss related to tor��theft ufdamage to and destruction Pfassets; errors and omissions; injuries to employees� and natural disasters for which the City carries insurance. The City obtains insurance through: participation in the League of Minnesota Cities Insurance Trust (LMCIT) which is a risk sharing pool with approximately 800 other governmental units. The City pays anannual premium hoLK4C|Tfor its workers compensation and property and casualty insurance. The LK4C|Tis self-sustaining through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the City's coverage |nany of the past three fiscal years. Liabilities are reported when it is probable that akoss has occurred and the amount of the loss can be reasonabiyastimnated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City's management is not aware of any incurred but not reported claims. Note 16: TERRITORIAL ACQUISITION AGREEMENT The Utilities has entered into an agreement to transfer ownership of electric plant and electric service to customers in certain areas currently receiving electric service from Connexus Energy. The cost ofproperty purchased from Connexus Energy will benet book value. The Utilities will also pay for loss of revenue for each area acquired based on a formula outlined in the agreement. In addition, the Utilities will compensate Connexus Energy for the loss of revenue from the future saie of electricity toelectric customers in the areas acquired from Connexus Energy for a period of ten years from the date ofsale ofeach individual area. During 288Oand 1QAQ'the Utilities paid $3O2.80&and $339.3G2.respectively, under this agreement, including $285,170 in 2000 and $287.336 in 1999 for loss of revenues. All amounts paid are inoKuded in property and equipment. 33 THE GENERAL FUND The General Fund is used to account for resources traditionally associated with government which are not required legally or by sound financial management to be accounted for in another fund. The majority of the current day-to-day operations will be financed from this fund. CITY OF ELIC RIVER, MINNESOTA CENERALFUND COMPARATIVE BALANCE SHEET DECEMBER 31, 2000 AND 1999 ASSETS Cash and investments Receivables: Delinquent taxes Accounts Interest Due from other funds Due from component unit Due from other governments TOTAL ASSETS LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable Salaries payable Deferred revenue TOTAL LIABILITIES FUND BALANCES Reserved for encumbrances Unreserved Designated for working capital TOTAL FUND BALANCES TOTAL LIABILITIES AND FUND BALANCES 34 214,107 5,514 28,362 6,782 1,771 35,099 $ 3,129,955 $ 171,273 148,432 .. A. 2,695,612 ANOWWOF "WA $ 2,469,887 153,226 5,629 27,907 8,109 2,887 73,096 $ 2,740,741 $ 213,664 128,413 85,784 427,861 51,000 2,261,880 1 ,1 A r1 [] A n $ 3,129,955 $ 2,740,741 CITY OfELK RIVER, MINNESOTA GENERALFUND STATEMENT {}FREVENUE, EXPENDITURES, AND CHANGES |NFUND BALANCE ' BUDGET AND ACTUAL YEAR ENDED DECEMBER 31.2C0Q (With Comparative Actual Amounts for the Year Ended December 31,18SB) REVENUE General property taxes Licenses and permits Business Nonbusiness Total licenses and permits Intergovernmental revenue Federal COPS grant State Local government aid Property tax credits Local performance aid PERA aid Police aid State highway aid COPS grant Other County grant Local Gravel tax Total intergovernmental revenue Charges for services General government Public safety Police and school liaison Fire calls and contracts Streets Park and recreation fees Total charges for services Fines Other revenue Interest income Landfill surcharge Tax forfeited land sale Miscellaneous Total other revenue TUTALREYENUE 2000 Variance - Favorable Budget Actual (Unfavorable) -----' ----- $ 3.311'100 $ B.288.S7D $ (22.124) 79,950 89,891 9,941 75.349 608.150 659907 51.847 435,957 ----- 880.100 74g.888 ----- 61.788 ------' 511.306 71.450 70.810 (632) 84.740 277.000 276.977 (23) 198.188 498.250 500.044 2.394 408.244 - ' ' 17.760 11.500 11,514 14 11.514 135.000 155.897 97 137.871 20.000 30.300 2.300 20.716 7.500 14.830 7,430 34'857 7.000 14.265 6.765 22,209 - - 12.524 45.000 53.830 8.633 56.658 1.002,100 1.10G,078 26.978 1.104.281 381.850 300.008 (15.242) 246'878 52.300 56.664 4,384 85.351 76.000 100.065 24.885 86.004 3.000 17.888 14.680 18.333 69.250 55.180 (14.070) 54.031 ----- 582.400 58O.2O3 ----- 13.803 -----' 491.197 115,700 11Q.421 3.721 117,814 80.000 161.759 81.759 53.570 9.000 9.000 - 9,000 - 373 373 443 3.788 8.023 6.323 13.805 92.700 18O.156 87.455 70.020 $ 5.872.100 $ 6.O43.721 $ 171.O21 $ 5^358.633 W 36 EXH|@ITA-2 Continued CITY 0FELK RIVER, MINNESOTA SENERALFUND STATEMENT OFREVENUE, EXPENDITURES, AND CHANGES |NFUND BALANCE ' BUDGET AND ACTUAL YEAR ENDED DECEMBER 31,2OOO (With Comparative Actual Amounts for the Year Ended December 31. 1999) 2000 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual EXPENDITURES ----------- ---------- -------- -------- Cmrroft General Government: Mayor and council Personal services $ 51,300 $ 61.575 $ (10.275) $ 41.589 Supplies 6.900 4.649 2.251 2.604 Other services and charges 83.200 88.513 (5.419) 59.130 Total mayor and council 141,400 154.843 (13.443) 103.323 Administration Personal services 279.850 272.875 6.975 242.216 Supplies 15.700 14.411 1.289 5.826 Other services and charges 39.750 38,*13 1.337 37.621 Capital outlay 10.850 11.937 (1.287) 30.437 Total administration 345.750 337.436 8.314 316.200 Finance Personal services 248.050 248.180 860 231,513 Supplies 4.000 9.573 (5.573) 6,143 Other services and charges 66.850 48.764 18.086 48.043 Capital outlay 3.500 3.371 129 - Total finance 323.200 309.898 13.302 285,699 Lo0m| Other services and charges 72.000 76.752 (4.152) 72.384 Economic development Personal services 47.650 33.851 13.709 32.766 Planning Personal services 210.100 208.727 1.373 175.410 Supplies 3.100 4.328 (1.228) 5.272 Other services and charges 29.300 17,743 11.557 23.956 Capital outlay - ' - 2.471 Total planning 242.500 230'798 71.702 207.117 Energy city Personal services 18.500 4.040 13.660 7.983 Other services and charges 1.800 281 1'509 35 Total energy city 20.300 5.131 15'169 8.018 36 CITY OFELK RIVER, MINNESOTA GENERALFWND STATEMENT 0FREVENUE, EXPENDITURES, AND CHANGES |WFUND BALANCE ' BUDGETAmDACTU4L YEAR ENDED DECEMBER 31.200O (With Comparative Actual Amounts for the Year Ended December 31.1999) 2000 EXPENDITURES 'CONTINUED General Government (continued)� Government building Personal services Supplies Other services and charges Capital outlay Total government building Council contingencies Other services and charges Total general government Public Safety: Police protection Personal services Supplies Other services and charges Capital outlay Total police protection Fire protection Personal services Supphes Other services and charges Capital outlay Total fire protection Building and zoning Personal services Supplies Other services and charges Capital outlay Total building and zoning Total public safety Public Works: Streets Personal services Supplies Other services and charges Capital outlay Total streets EXH|BITA' Continued Variance ' Favorable 1999 Budget Actual (Unfavorable) Actual $ 38,650 $ 36,667 $ 1.983 $ 26,640 7.300 8.691 (1.391) 8,994 42.800 53,123 (10.323) 44,795 17.150 5,201 (5,201) 1.214 88.750 103.002 (14.832) 81.652 45.700 47.082 (1.382) 35.088 1,891700 1.921.583 (29883) 1.775,638 111.500 128,853 (17.353) 125,582 183700 1160,924 (3.224) 137.101 17.150 23,724 (6,574) 31.331 2.184.050 2'241.084 (57.034) 2.069.652 253.358 229.523 23.827 201,675 32.950 44.986 (12'036) 34,719 57.000 74.681 p7^681> 65.256 17.000 10.864 8,136 8.349 300.300 360.054 246 309.999 414,158 414.718 (560) 365.710 12.600 12.729 (129) 13.020 24,200 21.455 2.745 2Z853 29.600 27.391 2.209 4.418 480.550 476.293 4.257 406.015 3,024.900 3,077.431 (52.531) 2.785.000 360.050 341.107 18.943 318.402 78.500 00.315 (11.815) 81.394 133.750 126.987 6.763 110.708 51'650 8.365 43.285 823.950 566.774 57.176 518'504 37 CITY 0FELK RIVER, MINNESOTA GENERALIFUND STATEMENT OFREVENUE, EXPENDITURES, AND CHANGES |NFUND BALANCE BUDGET AND ACTUAL YEAR ENDED DECEMBER 31.2000 (With Comparative Actual Amounts for the Year Ended December 31,n999) 2000 EXPENDITURES 'CONTINUED Public Works (continued): Snow removal Personal services Supplies Other services and charges Total snow removal Equipment services Personal services Supplies Other services and charges Total equipment repair City engineer Other services and charges Total public works Culture and Recreation: Parks Personal services Supplies Other services and charges Capital outlay Total parks Recreation Personal services Supplies Other services and charges Total recreation Senior citizen programs Personal services Supplies Other services and charges Total senior citizen programs Total culture and recreation TOTAL EXPENDITURES EXH|BITA-2 Continued Variance Favorable 1999 Budget Actual (Unfavorable) Actual * 122,600 $ 65,688 $ K912 $ 49,456 27,600 23.032 4.580 20.389 13,600 5.715 7.885 4.185 103.800 04.435 09.365 74'010 47.091 84.358 98.450 100.794 (2.344) 98,413 57.100 00.960 (3.860) 56.699 3.500 1.257 2.243 334 158.050 163.011 (3.961) 155.448 42.000 44.206 (2.208) 64.077 908.880 808.426 120,374 812.637 138,000 202,741 (64741) 44,000 01,208 (17,200 46.400 36.480 9.920 19.150 13.053 5.*97 247.550 314.083 (86.533) 82,050 47.091 84.358 13,300 25.455 (12.155) 129.150 109.088 20.002 55,450 1,000 6.950 63,400 535,450 38 182.234 54.540 1,198 UUZ7,~44 57,047 37.374 103,768 1$G.189 910 43,374 (1S0 708 (4M8) 6,548 294 50,630 (23,972) 500.601 72,248 5,241,161 CITY OF ELK RIVER, MINNESOTA GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2000 (With Comparative Actual Amounts for the Year Ended December 31, 1999) EXCESS REVENUE (EXPENDITURES) OTHER FINANCING SOURCES (USES) Operating transfers in (out) Sewage disposal Municipal liquor Ice arena Capital outlay reserve - Transfers in Transfers out Development fund Electric Economic development authority NSP/RDF reserve Landfill Government building bonds Equipment certificate debt service Housing and redevelopment authority Total other financing sources (uses) EXCESS REVENUE AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES FUND BALANCE, JANUARY I FUND BALANCE, DECEMBER 31 Budget 3,900 90,000 2,000 19,750 19,750 0 $ 138,863 Ko] EXHIBIT A-2 Continued 2000 Variance - Favorable 1999 Actual (Unfavorable) Actual $ 238,969 $ 243,869 $ 117,472 10,000 8,000 110,000 - 110,000 (13,037) - - 20,000 - 42,778 (40,000) - (8,000) 3,900 - 16,522 90,000 - 90,000 2,000 - 2,000 19,750 - 19,750 19,750 - 19,750 (66,600) - (66,600) (13,000) - (13,000) 1,000 - 1,000 143,763 - 222,200 382,732 $ 243,869 339,672 $ 2,695,612 $ 2,312,880 IN 42 2 --1 WAZ"I "M R, livilmM34"m 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 or local ordinance to finance particular functions or activities of government. Li(Maintenance - This fund accounts for any library maintenance costs which are not paid by the Great River Regional Library System. Ice Arena - This fund accounts for the operation and maintenance of the ice arena which is funded by user fees. Senior Citizen Special Account - This fund is used to account for Senior Citizen program costs funded by revenues generated from Senior Citizen activities. Park.. Dedication, - This fund accounts for park dedication fees from developers and expenditures for park land acquisitions and park capital improvements. Landfill - This fund was established to segregate solid waste surcharge revenues to be used for landfill abatement and other environmental issues. Landfill -Construction Debris - This fund was established to account for the tax collected on construction debris deposited in the landfill and is to be used for related environmental issues, Revolving Loan - This fund was established to account for the City's portion of state economic development grant repayments which are used to fund other economic development projects. DTED Grant/Loan - This fund was established to account for the Department of Trade and Economic Development grant repayments which are used to fund economic development projects. Development Fund - This fund was establlished to attract businesses to develop within the City's business park. Capital Outlay Reserve - This fund was established to help build reserves for the purchase of capital equipment. The major source of revenue is from defeased bond issues and related special assessments. Emergency/Insurance Reserve - This fund was opened to account for insurance deductibles and litigation costs not covered by insurance. The major source of revenue is from insurance premium refunds. Government Buildings Reserve - This fund was established to account for the revenues and expenditures of preliminary studies of the construction of a new City Hall. Street Improvemen - This fund is funded by solid waste surcharge revenues which are set aside to repair road damage caused by large garbage trucks. Drug Forfeiture Reserve - This fund was established to account for revenues received as a result of drug related crimes. These funds must be used for drug education and prevention. Severance Pay Reserve - This fund was established to account for resources earmarked for severance pay expenditures. NSP/RDF Reserve - This fund was established to account for revenues received from the license agreement between the City and Northern States Power. Economic Development Authority - This fund was established in 1988 to account for a special tax levy authorized to help encourage development in the City. THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY CITY OF ELK RIVER, MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2000 (With comparative totals for December 31, 1999) LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 6,427 $ 22,379 Senior $ 4,315 Salaries payable - 6,932 Citizen - Due to other funds Library 138,950 Special Park Due to other governments Maintenance Ice Arena Account Dedication BASSETS 2,299 - - - Cash and investments $ 248,784 $ - $ 11,726 $ 745,067 Receivables: Delinquent taxes 3,741 - - - Notes - - - - Accounts 3,532 130,249 - - Interest 2,042 - 97 6,164 Due from other funds - - - - Due from component unit - - - - Due from other governments - 38,012 - - Prepaid items - - - - TOTAL ASSETS $ 256,099 $ 168,261 $ 11,823 $ 751,231 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 6,427 $ 22,379 $ 78 $ 4,315 Salaries payable - 6,932 - - Due to other funds - 138,950 - - Due to other governments - - - - Deferred revenue 2,299 - - - TOTAL LIABILITIES 8,726 168,261 78 4,315 FUND BALANCE Reserved for prepaid items - - - - Reserved for development projects - - - - Reserved for trail development - - - 188,441 Reserved for building debt 120,146 - - - Unreserved - Designated for capital outlay - - - 558,475 Undesignated 127,227 11,745 - TOTAL FUND BALANCE 247,373 - 11,,745 746,916 TOTAL LIABILITIES AND FUND BALANCE $ 256,099 $ 188,281 $ 11,823 $ 751,231 EEO 2,436 $ - $ 180 $ - $ - $ 6,572 304,447 - - - 530,599 99,377 4,936 - 2,436 - 865„226 99,377 4,936 6,572 750,042 - - - - _ 360„381 1,260,894 345,914 449,095 80,454 - - 1,260,894 345,914 449,095 80,454 750,042 360,381 $ 1263,330 $ 345,914 $ 1,314,321 $ 179,831 $ 754,978 $ 366,953 41 Landfill Capital Construction Revolving DTED Development outlay Landfill Debris Loan Grant/Loan Fund Reserve $ 1,202,577 $ 336,962 $ 445,589 $ 79,794 $ 443,240 $ 362,336 - - - - 8,071 - - 865,046 99,377 - - 20,556 6,1164 - - - - 10,1917 2,788 3,686 660 3,667 2,998 - - - - 300,000 1,414 - - - - - 205 $ 1,263,330 345,914 $ 1,314,321 $ 179,831 $ 754,978 $ 366,953 2,436 $ - $ 180 $ - $ - $ 6,572 304,447 - - - 530,599 99,377 4,936 - 2,436 - 865„226 99,377 4,936 6,572 750,042 - - - - _ 360„381 1,260,894 345,914 449,095 80,454 - - 1,260,894 345,914 449,095 80,454 750,042 360,381 $ 1263,330 $ 345,914 $ 1,314,321 $ 179,831 $ 754,978 $ 366,953 41 CITY OF ELK RIVER, MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2000 (With comparative totals for December 31, 1999) ASSETS Cash and investments Receivables: Delinquent taxes Notes Accounts Interest Due from other funds Due from component unit Due from other governments Prepaid items TOTAL ASSETS LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable Salaries payable Due to other funds Due to other governments Deferredrevenue TOTAL LIABILITIES FUND BALANCE Reserved for prepaid items Reserved for development projects Reserved for trail development Reserved for building debt Unreserved - Designated for capital outlay Undesignated TOTAL FUND BALANCE TOTAL LIABILITIES AND FUND BALANCE Emergency/ $ Government - Drug Insurance Buildings Street Forfeiture Reserve Reserve Improvement Reserve $ 497,485 $ 1,737,479 $ 1,036,671 $ 35,160 - 35,325 14,130 - 4,116 14,374 8,577 291 655 - - - 43,660 - - - $ 545,916 $ 1,787,178 $ 1,059,378 $ 35,451 3,742 $ - 3,742 - - 43,660 - - - - 825,000 - - 498,514 962,178 1,059,378 35,451 542,174 1,787,178 1,059,378 35,451 $ 545,916 $ 1,787,178 $ 1,059,378 $ 35,451 42 EXHIBIT B-1 Continued Severance $ 64,491 Economic - - - 6,932 Pay NSP/RDF DevOop, Totals - - - Reserve Reserve Authority 2000 1999 $ 163,734 $ 397,953 $ 145,507 $ 7,918,064 $ 6,146,100 - - 7,701 19,513 12,965 - - - 964,423 1,04,2,457 - - - 209,956 155,443 1,355 3,292 - 64,304 57,465 - - - 302,069 42,695 - - - - 45,898 - - _ 38,217 177„344 - - 72 43,732 44,063 $ 165,089 $ 401,245 $ 153,280 $ 9,560,278 $ 7,724,430 - $ - $ 18,362 $ 64,491 $ 199,334 - - - 6,932 5,702 - - 6,782 145,732 37,948 - - - 334,447 360,327 - - 4,497 641,708 688,922 - - 29,641 1,193,31,0 1,292,233 - - 72 43,732 44,063 - - - 750,042 744,043 - - - 1'88,441 146,000 - - - 945,146 887,878 - - - 918,856 846,313 165,089 401,245 123,567 5,520,751 3,763,900 165,089 401,245 123,639 8,366,968 6,432,197 $ 165,089 $ 401,245 $ 153,280 $ 9,560,278 $ 7,724,430 43 CITY OF ELK RIVER, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 2000 (With comparative totals for the year ended December 31, 1999) 44 Senior Citizen Library Special Park Maintenance Ice Arena Account Dedication REVENUE General property taxes $ 56,965 $ $ $ Intergovernmental Federal Grant - State Property tax credits 8,717 Grant - County Grant Charges for services - 532,320 1,311 Other revenue Interest income 13,114 940 857 45,014 Landfill surcharge 57,268 - - - Park dedication fees - 205,440 Sale of fixed assets - - - Miscellaneous - 34,715 3,050 - TOTAL REVENUE 136,064 667,975 5,218 250,454 EXPENDITURES Current: General government - - - - Public safety Public works - - - - Culture and recreation 46,407 397,288 5,681 66,017 Health and sanitation - - - - Community development - - Capital outlay 3,204 - - 116,931 TOTAL EXPENDITURES 49,611 397,288 5,681 182,948 EXCESS REVENUE (EXPENDITURES) 86,453 170,687 (463) 67,506 OTHER FINANCING SOURCES (USES) Operating transfers in - 27,328 - - Operating transfers out (11,000) (198,015) TOTAL OTHER FINANCING SOURCES (USES) (11,000) (170,687) - - EXCESS REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 75,453 (463) 67,506 FUND BALANCE, JANUARY 1 171,920 12,208 679,410 FUND BALANCE, DECEMBER 31 $ 247,373 $ $ 11,745 $ 746,916 44 EXHIBIT B-2 Continued Landfill Capital Construction Revolving DTED Development Outlay Landfill Debris Loan Grant/Loan Fund Reserve $ - $ - $ - $ - $ 123,726 $ 70,428 286,341 356,769 18,965 33,239 16,749 25,503 4,401 33,735 20,137 125,237 - - - - - - - 34,065 106,799 32,242 10,000 78,395 141,986 132,302 36,643 186,426 165,836 8,175 - - 52,835 24,202 - 32,377 - 52,835 - 324,392 141,986 79,467 36,643 (19,750) - 6,401 - 20,576 - 48,,621 - 27,762 114,092 - - 118,621 114,092 221,981 72,334 (56,145) $ 750,042 41,119 180,9,14 (62,454) (77,291) (21,335) 103,623 304,642 141,986 79,467 36,643 50,999 47,478 956,252 203,928 369,628 43,811 699,043 312,903 $1,260,894 $ 345,914 $ 449,095 $ 80,454 $ 750,042 $ 360,381 45 CITY OF ELK RIVER, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 2000 (With comparative totals for the year ended December 31, 1999) REVENUE General property taxes Intergovernmental Federal Grant State Property tax credits Grant County Grant Charges for services Other revenue Interest income Landfill surcharge Park dedication fees Sale of fixed assets Miscellaneous TOTAL REVENUE EXPENDITURES Current: General government Public safety Public works Culture and recreation Health and sanitation Community development Capital outlay TOTAL EXPENDITURES EXCESS REVENUE (EXPENDITURES) OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 Emergency/ Government Drug Insurance Buildings Street Forfeiture Reserve Reserve Improvement Reserve 30,432 91,242 58,361 2,393 - 563,682 229,073 - 40,860 1,800 - 18,058 71,292 656,724 287,434 20,451 31,871 - - - - 31,662 10,428 - 31,871 - 10,428 31,662 39,421 656,724 277,006 (11,211) 39,421 656,724 277,006 (11,211) 502,753 1,130,454 782,372 46,662 $ 542,174 $1,787,178 51,059,378 $ 35,451 Em EXHIBIT B-2 Continued Severance Economic Pay NSP/RDF Develop. Totals Reserve Reserve Authority 2000 1999 $ ' $ - s 126.053 307.344 $ 280.102 112,572 - - 12,129 39,811 40,188 - ' - 52,238 50,000 - - - 83,239 33,238 - - ' 533,631 462,299 10,106 27,288 4,662 455,362 238.122 ' ' - 1,201,601 000,221 - 205,440 827,918 - - - 34.065 17,277 - 287,908 13,589 627,398 591,226 10,106 315,196 157,013 3,497,889 3,259,165 10,106 30,272 45,650 - - - 52,238 28,901 - ' - 59,048 8,589 - - - 543.155 402.763 ' ' - 8,175 159,488 ' - 190,372 357299 264,484 ' - *.ro^ 267.752 1.017.942 ' ' 195.186 1.325.940 1.917.877 10.108 315.198 (38'153) 2.171.848 1.341.288 - ' 6.300 255.661 405.199 (122'328) (2,000) (492.038) (708.699) 10,106 192,867 (33,853) 1,934771 1,037788 154,9e3 208'378 157.482 6432.197 5.394.409 $ 185^089 $ 401.245 $ 123.639 $ 8.386'968 $ 6.432.197 47 CITY OF ELK RIVER, MINNESOTA LIBRARY MAINTENANCE FUND STATEMENT OF REVENUE, EXPENDITURES, AND CHANCES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2000 (With Comparative Actual Amounts for the Year Ended December 31, 1999) REVENUE General property taxes Intergovernmental revenue State Property tax credits Other revenue Interest income Landfill surcharge Miscellaneous TOTAL REVENUE EXPENDITURES Current: Culture and recreation Personal services Supplies Other services and charges Capital outlay TOTAL EXPENDITURES EXCESS REVENUE (EXPENDITURES) OTHER FINANCING SOURCES (USES) Operating transfers out EXCESS REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND BALANCE, ,JANUARY 1 FUND BALANCE, DECEMBER 31 EXHIBIT B-3 2000 Variance - Favorable 1999 Budget Actual (Unfavorable) Actual $ 57,950 $ 56,965 $ (985) $ 53,534 8,700 8,717 17 8,881 - 13,114 13,114 5,142 - 57,268 57,268 40,922 - - - 1,000 66,650 136,064 69,414 109,479 20,300 20,155 145 15,585 5,250 6,362 (1,112) 3,723 25,100 19,890 5,210 19,968 5,000 3,204 1,796 5,381 55,650 49,611 6,039 44,657 11,000 86,453 75,453 64,822 (11,000) (11,000) - (11,000) $ - 75,453 $ 75,453 53,822 171,920 118,098 $ 247,373 $ 171,920 M CITY OF ELK RIVER, MINNESOTA ICE ARENA FUND STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2000 (With Comparative Actual Amounts for the Year Ended December 31, 1999) REVENUE Charges for services Ice rental Admissions Other rentals Concessions Skate sharpening Total charges for services Other revenue Vending machines Interest income Sale of fixed assets Miscellaneous Total other revenue TOTALREVENUE EXPENDITURES Current: Culture and recreation Personal services Supplies Other services and charges Capital outlay TOTAL EXPENDITURES EXCESS REVENUE (EXPENDITURES) OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out TOTAL OTHER FINANCING SOURCES (USES) EXCESS REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 e Variance - Favorable 1999 Budget Actual (Unfavorable) Actual $ 324,500 $ 432,431 $ 107,931 $ 362,419 30,000 41,516 11,516 35,320 22,500 29,326 6,826 33,076 21,500 21,500 - 21,500 6,500 7,547 1,047 6,579 405,000 532,320 127,320 458,894 24,500 31,750 7,250 28,476 - 940 940 1,543 - - - 10,000 2,200 2,965 765 1,864 26,700 35,655 8,955 41,883 431,700 567,975 136,275 500,777 135,050 178,418 (43,368) 141,639 32,500 48,068 (15,568) 35„559 130,600 170,802 (40,202) 142,431 - - - 116,965 298,150 397,288 (99,138) 436,594 133,550 170,687 37,137 64,183 27,328 (198„050) (198,015) (198,050) (170,687) 27,328 133,677 35 (197,860) 27,363 (64,183) $ (64,500) $ 64,500 M CITY OF ELK RIVER, MINNESOTA LANDFILL FUND STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2000 (With Comparative Actual Amounts for the Year Ended December 31, 1999) REVENUE Other revenue Interest income Landfill surcharge TOTAL REVENUE EXPENDITURES Current: Health and sanitation Personal services Other services and charges Capital outlay TOTAL EXPENDITURES EXCESS REVENUE (EXPENDITURES) OTHER FINANCING SOURCES (USES) Operating transfers out EXCESS REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 ANIZINTFANN 3,850 Variance - 179 3,117 Favorable 1999 Budget Actual (Unfavorable) Actual $ - $ 70,428 $ 70,428 $ 31,511 100,000 286,341 186,341 195,383 100,000 356,769 256,769 226,894 3,850 3,671 179 3,117 10,000 4,504 5,496 156,371 - 24,202 (24,202) - 13,850 32,377 (18,527) 159,488 86,150 324,392 238,242 67,406 (19,750) (19,750) $ 66,400 304,642 $ 238,242 956,252 $ 1,260,894 50 (19,750) CITY OF ELK RIVER, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY FUND STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2000 (With Comparative Actual Amounts for the Year Ended December 31, 1999) REVENUE General property taxes Intergovernmental revenue State Property tax credits Other revenue Interest Income Miscellaneous TOTALREVENUE EXPENDITURES Current: Community development Personal services Supplies Other services and charges Capital i Outlay TOTAL EXPENDITURES EXCESS REVENUE (EXPENDITURES) OTHER FINANCING SOURCES (USES) Operating transfers in Operating transfers out TOTAL. OTHER FINANCING SOURCES (USES) EXCESS REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES FUND BALANCE, JANUARY 1 FUND BALANCE, DECEMBER 31 EXHIBIT B-6 81,100 2000 19,437 66,724 1,800 5,201 Variance - 1,993 90,700 123,508 Favorable 1999 Budget Actual (Unfavorable) Actual $ 123,750 $ 126,653 $ 2,903 $ 116,954 12,050 12,129 79 12,125 3,050 4,662 1,612 4,701 10,000 13,569 3,569 10,124 148,850 157,013 8,163 143,904 81,100 61,663 19,437 66,724 1,800 5,201 (3,401) 1,993 90,700 123,508 (32,808) 80,480 7,500 4,794 2,706 9,479 181,100 195,166 (14,066) 158,676 (32,250) (38,153) (5,903) (14,772) 6,300 6,300 - 24,201 (2,000) (2,000) - (2,0010) 4,300 4,300 - 22,201 $ (27,950) (33,853) $ (5,903) 7,429 157,492 150,063 $ 123,639 $ 157,492 51 � � i r i • DEBT SERVICE FUNDS Debt service funds are used to account for the payment of interest and principal on long-term general obligation debt other than debt issued for and serviced primarily by enterprise funds. Orono Dam 5aLety. Loan - This fund is used to account for the accumulation of resources and payment of principal and interest on a State Loan used to repair Orono Dam. 1989 Fire Equipment Bonds - This fund is used to account for the accumulation of resources and payment of principal and interest to finance the purchase of fire equipment. Qgyarnmanl Building Bonds - This fund is used to account for the accumulation of resources and payment of principal and interest to finance the construction of a City Hall and police facility. Improvement'Bonds - This fund is used to account for the accumulation of resources and payment of principal and interest to finance various street, water, sewer and storm sewer improvements. Equipment Certificates - This fund is used to account for the accumulation of resources and payment of principal and interest to finance the purchase of public safety and street and other equipment as authorized by Minnesota Statutes. Tax Increment Financing Bonds - This fund is used to account for the accumulation of resources and payment of principal and interest to finance administrative and development costs within the various TIF districts. PIR Bonds - This fund is used to account for the accumulation of resources and payment of principal and interest to finance public improvements. 1994 Storm !Sewer Revenue Bondra - This fund is used to account for the accumulation of resources and payment of principal and interest to finance repair and construction of various drainage projects. Ice Arena Bonds - This fund is used to account for the accumulation of resources and payment of principal and interest to finance the construction of the ice arena. CITY OFELK RIVER, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2000 (With comparative totals for December 31, 1999) ASSETS Cash and investments Cash with fiscal agent Receivables: Delinquent taxes Special assessments Delinquent Deferred Interest LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable Deferred revenue TOTAL LIABILITIES FUND BALANCE Reserved for debt service TOTAL LIABILITIES AND FUND BALANCE Orono Dam 1989 Fine Government $ 1.525 Safety Equipment Building Improvement Loan Bonds Bonds Bonds $ 28.583 $100.988 $ 376.408 $ 2,729.888 - - 236,798 1.738,858 1.915 4.216 - 6.843 18 - - 138,225 1.314 - ' 7^328.793 212 910 3.114 22'685 $ 29,042 ===== $115,124 ===== $ 616.321 ===== $ 11.963,072 $ ' $ - $ 1,287 $ 1.525 2.524 2,636 - 7.330.171 2.524 2.636 1.287 7,348,696 28.518 112.488 615.034 4,822.370 $ 29.042 $115.124 $ 818.321 $ 11.863.072 MN 1*42111:1111106 $ - $ 500 $ 250 $ 461 5,629 - - 4,028 5'629 500 250 4.479 216.117 201.571 225.223 28^420 � - $ 4,013 $ 3,293 - 7,353908 8.319.719 - 7,358,001 8.323.012 - 6,039.757 5.467.998 $ 221,746 $ 202.871 $ 225,473 $ 24,909 $ 13.397.758 $ 13,791,085 53 Tax Increment 1894 Equipment Financing Storm Sewer Ice Arena Totals Certificates Bonds PIR Bonds Rev.Bmnds Bonds 2008 1999 $ 210.760 $ 200.413 $ 223.623 $ 18.213 $ - $ 3.894.867 $ 3,413.031 - - - - - 1.975.858 1,988.754 9.242 - - 8.645 - 28.561 17.786 - ' - - ' 138.243 42'921 - - ' - - 7.328.1O7 8.304.009 1,744 1,658 1.850 1511 - 32'324 32.524 $ 221'748 $ 202,871 $ 225,473 $ 24.909 $ - $ 13.397,758 $ 13.791.0:05 $ - $ 500 $ 250 $ 461 5,629 - - 4,028 5'629 500 250 4.479 216.117 201.571 225.223 28^420 � - $ 4,013 $ 3,293 - 7,353908 8.319.719 - 7,358,001 8.323.012 - 6,039.757 5.467.998 $ 221,746 $ 202.871 $ 225,473 $ 24,909 $ 13.397.758 $ 13,791,085 53 CITY DFELK RIVER, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT QFREVENUE, EXPENDITURES AND CHANGES UNFUND BALANCE YEAR ENDED DECEMBER 31.2O0O (With comparative totals for the year ended December 31, 1999) 54 Orono Dam 1989 Fire Government Safety Equipment Building Improvement Loan Bonds Bonds Bonds REVENUE ------ ------' General property taxes $27.B8G $G2.322 $ ' $ 109.827 Intergovernmental revenue State Property tax credits 4.260 9.534 - 18.863 MSA funds Other revenue Special assessments 1.662 - ' 1.803.081 Interest income 785 4.869 38.054 161.327 TOTAL REVENUE 34.513 76.725 38.054 2.891.098 EXPENDITURES Debt service: Principal 43.449 80.000 135,080 885.000 Interest and service charges 7.581 6.805 134`501 607.361 Refunding escrow - 101.457 TOTAL EXPENDITURES 51.030 86,805 269.501 1.853,818 EXCESS REVENUE (EXPENDITURES) p0.517> 9.920 (231.447) 437.280 OTHER FINANCING SOURCES (USES) Operating transfers m - - 205,579 84.392 Proceeds ofbonds ' ' - - Proceeds nfrefunding bonds - 891.805 Payment torefunding bond escrow agent - - - (879.775) TOTAL OTHER FINANCING SOURCES (USES) - 205.570 98.422 EXCESS REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (18,517) 8.9120 (25.888) 533.702 FUND BALANCE, JANUARY 1 43,035 102.568 840,902 4.088.674 RESIDUAL EQUITY TRANSFERS OUT - - - - FUND BALANCE, DECEMBER 31 $ 26.518 ==== $112.480 ==== $ 615.834 $ 4.822,376 54 EXHIBIT C-2 55 Tex 1994 Increment Sturm Equipment Financing Sewer Ice Arena ToeVm Certificates Bonds PIR Bonds Rev.Bondo Bonds 2000 1998 $ 142.957 $ 05,156 $ - $ 9,9.077 $ $ 527`145 $ 500,702 21.930 - 15,182 - 87,778 88.700 - - - - - - 189.717 - - - 1.804,743 1.696.938 6.478 8^838 11.538 1.804 - 233,093 129.127 171.374 93^904 11.538 118,083 - 2.633.358 2.585.184 171.175 70.000 178.000 85.000 80.000 1.088,824 1.611.592 20.081 82.885 35.340 45.998 108.015 1.048.545 830.671 - - - 181.457 1.153.140 101.238 152,885 205.340 110.088 198'015 2.809.626 3.095.403 (10.882) (58.891) (193.802) 5.007 (198,015) (266.267) (1.110.219) 58.247 11.000 204.055 - 198,015 759.888 040.370 - 48,881 5.500 ' - 54.340 162.228 - 505,360 - - 1.397.174 576.942 - (493.586) - ' - (1,373.371) - 50.247 71.804 210.164 ' 198.015 838.031 1,379.540 30.885 12.713, 16.362 5.067 ' 571,764 260.321 179.732 188.858 208.861 15.363 - 5.467,9,93 5.508.180 - ' ' ' ' (309.508) $ 210.117 ===== $ 281.571 ===== $ 225.223 ===== $ 20.430 ===== $ ' ===== $ 6.039.757 $ 5.467.998 55 CAPITAL PROJECTS FUNDS Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by enterprise funds. Capital Projects - This fund is used to account for reserves to be used for future improvement projects, Trunk -Ulilities Expansion - This fund is used to account for the accumulation of resources collected for future water and sanitary sewer trunk expansion. Storm Sewer Projects - This fund is used to account for expenditures related to storm sewer improvement projects. These projects will be funded through a Surface Water Management Utility fee. Permanent Improvement Revolving - This fund is used to account for bond proceeds to be used to finance public improvements and to account for special assessment collections levied for the improvements. Equipment Certificates - This fund was opened to account for equipment certificate proceeds used to fund capital equipment purchases as authorized by Minnesota Statutes. Western Area Improvements - This fund is used to account for costs extending water and sewer services to this area and for street improvements. East Highway.1 0 Improvements - This fund is used to account for costs extending water and sewer services to this area and for street improvements. Tax Increment Fjogncing Districts - This fund is used to account for administrative and development costs associated with the various tax increment financing projects. CITY 0FELK RIVER, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING BALANCE SHEET DECEMBER 3l,2OOD (With comparative totals for December 31, 1999) LIABILITIES AND FUND BALANCE LIABILITIES Accounts and contracts payable Due hzother funds Deferred revenue TOTAL LIABILITIES FUND BALANCE (DEF|C|T) Reserved for western area utilities Unreserved Designated for capital projects Undesignated TOTAL FUND BALANCE (DEFICIT) TOTAL LIABILITIES AND FUND BALANCE $ 42.045 $' $ - Q - - - - - 317.199 403,137 2.212 1.868/313 359.244 488.137 2.21,2 1.868.013 ' 500.356 - - 5O1,708 936.622 312,227 442.508 - - - - 501.709 1,498'878 312.237 442.508 $ 800,953 $1,900,015 $ 314,439 * 2^410,521 Trunk Storm Permanent Capital Utilities Sewer Improvement Projects Expansion Projects Revolving ASSETS -------- --------- —------ Camhandinxoutrnomte $ - $ 27.866 $ 308.429 $ 438.877 Receivables Delinquent taxes 640 - 3.458 - Special assessments 322.709 411.837 - 1.968.013 Accounts - - - - Interest 4.311 12'211 2,552 3,831 Due from other fundo 533.287 1,438.101 - - Due from other guvemmnente - ' - - TOTAL ASSETS $ 800,953 $1.9D0,U16 $ 314.439 $ 2.410.521 LIABILITIES AND FUND BALANCE LIABILITIES Accounts and contracts payable Due hzother funds Deferred revenue TOTAL LIABILITIES FUND BALANCE (DEF|C|T) Reserved for western area utilities Unreserved Designated for capital projects Undesignated TOTAL FUND BALANCE (DEFICIT) TOTAL LIABILITIES AND FUND BALANCE $ 42.045 $' $ - Q - - - - - 317.199 403,137 2.212 1.868/313 359.244 488.137 2.21,2 1.868.013 ' 500.356 - - 5O1,708 936.622 312,227 442.508 - - - - 501.709 1,498'878 312.237 442.508 $ 800,953 $1,900,015 $ 314,439 * 2^410,521 � - $ 52,254 $ 385,001 $ 15`152 $ 494,452 $ 251,573 - - 1.793,753 331,432 2'125.185 1,543,776 - - - - 2.GSO.5S1 1,383.399 - 52.264 2,178.754 348.584 5^31O.1QO 3.178.748 - - - - 560,356 304.508 ' 152,877 - - 2'345.843 2.202.884 - - (1.619�,409) (245.968) (1,865.377) (1.858.739) - 152.877 (1.519,409) (345.968) 1^040.822 848.543 � - $ 205`131 $ 659.345 $ 618 $ 8.351.020 $ 4.027.281 ===== ===== 57 Tax Western East Increment Equipment Area Hwy 10 Financing Totals Certificates Improvements Improvements Districts 2000 1899 $ - $ 203,448 $ - $ - * 988.620 $ 542.482 - - - 580 4.884 3.686 - 2.702.559 1.394.873 - ' 125.200 - 125.200 - - 1.883 - 58 24.444 18'913 ' ' 1.844 - 1.973.232 1.625.214 - - 532,301 - 532.301 441,113 � - ===== $ 205,131 ===== $ 859,345 $ 616 * 6.351.020 $ 4,027.291 � - $ 52,254 $ 385,001 $ 15`152 $ 494,452 $ 251,573 - - 1.793,753 331,432 2'125.185 1,543,776 - - - - 2.GSO.5S1 1,383.399 - 52.264 2,178.754 348.584 5^31O.1QO 3.178.748 - - - - 560,356 304.508 ' 152,877 - - 2'345.843 2.202.884 - - (1.619�,409) (245.968) (1,865.377) (1.858.739) - 152.877 (1.519,409) (345.968) 1^040.822 848.543 � - $ 205`131 $ 659.345 $ 618 $ 8.351.020 $ 4.027.281 ===== ===== 57 CITY DFELK RIVER, MINNESOTA CAPITAL PROJECTS FUNDS COMBINING STATEMENT 0FREVENUE, EXPENDITURES AND CHANGES |NFUND BALANCE (OEF|C|T) YEAR ENDED DECEMBER 31'20OD (With comparative totals for the year ended December 31, 1999) 58 Trunk Storm Pennmmerd Capital Utilities Sewer Improvement Projects Expansion Projects Revolving REVENUE -------- -------- -------- —-------- Genexa|propedytmxou $ 272 $ $ 49.255 $ - Intergovernmental State Property tax credits - ' 7.521 State highway and other Other revenue Special assessments 155.487 344.054 ' 80.589 Interest income 26,135 81,276 15.587 29.891 Niinre||amoomu 220,198 1.948 60.320 - TOTALREVEWUE 411.092 427.876 140.689 120.280 EXPENDITURES Capital outlay: Public safety - - - - Public works Infrastructure/development improvements 022'837 10,269 2.542 - TOTAL EXPENDITURES 622.837 10.260 2.542 - EXCESS REVENUE (EXPENDITURES) (211.745) 417.607 138'147 120,280 OTHER FINANCING SOURCES (USES) Operating transfers in - ' - ' Operating transfers out (204.655) Proceeds oflong-term debt ' - - - TOTAL OTHER FINANCING SOURCES (USES) - - ' (204,655) EXCESS REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (211.745) 4117.007 138.147 (84.375) FUND BALANCE (DEFUC|T).JANUARY 1 713.454 1.079,271 174.080 526.883 RESIDUAL EQUITY TRANSFERS |0 - - - - FUND BALANCE (DEF|C|T),DECEMBER 31 $ 501.709 $1.496.878 * 312.227 $ 442,508 58 EXHIBIT D-2 - 250.880 41,821 (359.562) 192,279 (40.053 - 097.589 (1.581.230) 13.584 848.543 579,088 - - - - 309'508 $ - $ 152.877 $ (1.519.409) $ (345.968) $ 1,040.022 $ 848.643 ===== ===== ===== 59 Tax Western East Increment Equipment Area Hwy 10 Financing Totals Certificates ----- Improvements ----- Improvements Districts -----2000-----' 1999 $ - $ $ - $ 59.558 $ 108.080 $ 72.177 - ' ' 7.521 8.454 - 3.711.829 - 3.711.629 753,002 - - - 590.730 374,023 - 3.752 180 150.830 70.781 ' ' 1.2Q6.58O 4.310 1.51O.36O 328.607 - 3'752 4.B18.2DQ 64.052 8.O85.O5U 1.605.044 175,260 - - - 175.260 31.008 22'693 - - - 22.893 130.874 - 1.009.268 5.81Q.Q07 428.614 7.88G.535 7,558.686 197.953 1.000.288 5.61O.007 425.014 7.8@4.488 7'721.473 (197^953) (1.005.514) (6OA.7S8) (359.562) (1.7QO.538) (8^118.429) - - - - 603.460 (247) - - (204.902) (182.859) 198'280 1.255.000 741.618 - 2.1Q5.71Q 5,855.875 197.953 1.255.080 741.61Q - 1.Q9U.8i7 6.070.378 - 250.880 41,821 (359.562) 192,279 (40.053 - 097.589 (1.581.230) 13.584 848.543 579,088 - - - - 309'508 $ - $ 152.877 $ (1.519.409) $ (345.968) $ 1,040.022 $ 848.643 ===== ===== ===== 59 Jk � �ikb � Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business, where the intent of the City is that the costs of providing services to the general public are financed primarily through user charges; or where the determination of net income is appropriate for accountability purposes. Garbage Colleglion F.Und. - This fund is used to account for the activities of the City's garbage collection and recycling program, Municipal ILiquor Fund - This fund is used to account for the revenues and expenses of the City's off -sale liquor store. A portion of the store's net income is transferred to the General Fund for operations. Other transfers are made periodically to fund other projects. Sewage Disposal Fd - This fund is used to account for the activities of the City's sewer system. Water Fund - This fund is used to account for the activities of the City's water system. Elgc2J,g,Fund, - This fund is used to account for the activities of the City's electric system. CITY OF ELK RIVER, MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET DECEMBER 31.2ODO (With Comparative Totals for December 31,i899) ASSETS CURRENT ASSETS Cash and investments Accounts receivable Interest receivable Other receivables Due from other funds Due from component unit Inventories Prepaid items TOTAL CURRENT ASSETS FIXED ASSETS Land and improvements Buildings Plant and production Collection and distribution Equipment, furniture and fixtures TOTAL FIXED ASSETS, COST LESS ACCUMULATED DEPRECIATION TOTAL FIXED ASSETS, NET OTHER ASSETS Restrictedaumet-invastmentm Unamortizedbond discount TOTAL OTHER ASSETS TOTAL ASSETS Z Garbage Municipal Sewage Collection Liquor Disposal $ 255,671 $ 1,416.935 $ 3.428.124 7,598 - _ 2.115 11'722 28.361 49.751 - 78.231 - - ' 411,238 315,135 1,830.895 3,534.718 - 823.761 411.895 - 1.384.887 - - 8.556.723 - - 2,234,480 - 149.203 271.983 2,367'861 11.474.280 - 443.128 4.448.327 - - 1.924.723 7.027^953 - - - - - 38,606 ' - 38,606 $ 315.135 $ 3.764,618 ====== $1O.GU1.275 EXHIBIT E-1 Continued 61 Totals Water Electric 2000 1900 � 1.393,254 $ 1.407'906 $ 7.901,890 $ 6.551.464 56,138 935,329 999.065 823.734 ' - 42.198 35.626 46'573 109'855 156.428 121.674 ' - 127,982 128.751 - - - 225.000 14.271 450.792 878,301 876.077 7.448 23.878 31,321 38.832 1.517.604 2.927.755 10.135,185 8.901.1,58 - - 1.234,856 1.234.856 ' - 1.384,887 1.384.832 5.188.574 2.847.614 16.593.911 18.289.553 1.677.911 14.741.998 18.054,388 18,705.284 74.412 2.754.278 3.249^875 3.227.526 6.941.807 20.343.880 41.127,018 80.882.881 1.511.016 8.444'288 14.844,759 13.540.929 5.430.881 11,899.602 28.283,159 25.321.132 429.739 781.025 1,210,,784 924.747 47.473 227 86,306 04.427 477,212 781.252 1,207.070 1.019.174 � 7.425,777 $ 15'608.609 $ 37,715`414 35.241.484 61 CITY OF ELK RIVER, MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET DECEMBER 31, 2000 (With Comparative Totals for December 31, 1999) LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts and contracts payable Salaries and benefits payable Accrued interest Customer deposits Due to other funds Deferred revenue Bonds payable, current portion TOTAL CURRENT LIABILITIES LONG-TERM LIABILITY Bonds payable, less current portion above TOTAL LIABILITIES FUND EQUITY Contributed capital Retained earnings - Reserved for emergency Reserved for construction Unreserved TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY on Garbage Municipal Sewage Collection Liquor Disposal $ 62,867 $ 207,695 $ 18,155 - 28,537 15,522 6,768 - - - 80,000 180,000 69,635 316,232 213,677 69,635 920,000 3,005,000 1,236,232 3,218,677 2,687,733 245,500 2,528,386 4,694,865 245,500 2,528,386 7,382,598 $ 315,135 $ 3,764,618 $ 10,601,275 EXHIBIT E-1 Continued 5ow Totals VVahar Electric 2000 1989 � 18.111 $ 351.813 $ 658.641 $ 758.555 48.711 164.442 257.212 267.383 54.357 1'999 56.356 81.231 - 106,115 108.115 98.250 0.523 128,626 139.148 223,045 - - 6.768 8'813 200.800 57.508 517.500 490,000 330.701 811.495 1.7411.740 1.907.257 2.370,000 80.000 8'355.000 6.872.500 2.700,701 871.495 8.096,740 8.778.757 1.081.525 1.245.039 4.994.897 4.994.697 - 85^000 85.000 87,201 429.730 606.025 1.125.764 837,546 3.233.412 12.711.850 23.413.213 20,542.263 4.725.076 14,737,114 29.618.674 28.461.707 � 7.425.777 $ 15.688.600 o 37.715.414 $ 35'241.464 5ow CITY OFELK RIVER, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT DFREVENUE, EXPENSES AND CHANGES |NRETAINED EARNINGS YEAR ENDED DECEMBER 31.28QO (With comparative totals for the year ended December 31.1899) OPERATING REVENUE Sales Less cost of sales GROSS PROFIT Charges for services GROSS PROFIT AND CHARGES FOR SERVICES OPERATING EXPENSES Personal services Professional and contractual services Purchased power Utilities Maintenance and repairs Insurance Depreciation Supplies and miscellaneous TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) NQNOPERAT|NGREVENUE (EXPEN8ES) Interest income Connection charges Customer penalties Miscellaneous revenue Interest expense Amortization ofbond discount Loss andisposal mffixed assets Miscellaneous expense TDTALNON0PERAT|NG REVENUE (EXPENSES) INCOME BEFORE TRANSFERS OPERATING TRANSFERS OUT NET INCOME RETAINED EARNINGS, JANUARY 1 RETAINED EARNINGS, DECEMBER 31 Garbage Municipal Sewage Collection Liquor Disposal � - $ 3.788.048 $ - - 2.846.328 - - 941.722 - 886.815 877.655 686.815 S41.722 877^656 4.685 279'743 208,941 781.529 2.100 26.931 - ' - 23.825 - 68.560 ' 6.548 75.731 - 4.368 8.321 - 75.064 318.946 4,829 58,951 51.488 791.043 451.197 758.069 (104,228) 490.525 120.786 17.392 78.782 193'354 - 630,643 0.831 ' - 97.248 4.108 1,943 - (60.040) (180,486) - ' (3,016) - - (10'871) (4,581) - 124.571 5^977 637.878 20.343 406.502 758.664 (146.400) (20.338) 20.343 350,102 739.328 225.157 2.178.284 3.950.587 $ 245.500 ===== $ 2.528.388 $ 4.094.805 Water Electric - EXHOT E-2 2000 1999 - $ 3'788.048 $ 3.478.938 - 2'846.820 2.052'392 - - 941,722 826,546 755,462 8.380.846 11'709.778 11'881.358 755.482 9.389'846 12,651.500 11.007,804 89,224 828^615 1,418.208 1.342,388 23.448 67'275 901.283 824.895 - 5.497'006 5.497.608 4,905.987 128.512 48,906 268.883 181,440 132,783 612,087 827.149 645.874 18.808 53'081 82.576 132.337 185,266 812.124 1.302.000 1.295.822 29,.001 349,005 483.225 513.900 615,042 8.208.789 1'0.882'940 9.842.613 140.420 1.121,057 1.768.560 2.065.291 83.375 95.256 408.159 288.034 524.605 459,185 1.614,533 7.119.761 0.702 71,918 88,549 88.859 46 15.077 118,420 128'231 (131.150) (12.741) (390,424) (414'885) (5.631) (341) (8.988) (8'049) - (25.888) (41.122) ' - (8.449) (6,449) (18.847) 478.028 596.223 1.042.678 1.182,704 618,449 1.717,280 3'611238 3,247,985 (50.621) (230.914) (454,271) (978.571) 581,828 1,486.366 3^156.987 2,269,424 3.101,323 12.005.709 21.467.010 19.197.588 � 3.863.161 13.482.075 24.823.977 $ 21,467.010 65 CITY OF ELK RIVER, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2000 (With comparative totals for the year ended December 31, 1999) CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by operating activities - Other income related to operations Depreciation (Increase) decrease in assets: Accounts receivable Other receivables Due from other funds Inventories Prepaid items Increase (decrease) in liabilities: Accounts payable Salaries and benefits payable Due to other funds Customer deposits Deferred revenue NET CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Due from component unit Operating transfers to other funds Transfers to restricted funds NET CASH USED BY NONCAPITAL FINANCING ACTIVITIES M Garbage Municipal Sewage Collection Liquor Disposal $ (104,228) $ 490,525 $ 120,786 107,179 4,106 632,586 - 75,664 318,946 2,596 11,275 (10,506) - (48,622) 931 16,107 7,851 (389) 2,253 3,345 (2,045) - - 15,319 540,033 1,073,008 225,000 (11 46,400) (20,336) 78,600 $ (20,336) EXHIBIT B-3 Continued Totals Water Electric 2000 1999 $ 140,420 $ 1,121,057 $ 1,788,880 $ 2,065,291 531,443 539,739 1,815,053 1,318,204 185,266 812,124 1, 392, 000 1,295,822 (13,208) (84,719) (75,331) (91,475) (12,830) (21,924) (34,754) 83,514 - - 769 (3,178) (2,210) 50,608 (224) 18,588 138 7,375 7„511 (18,389) (2,227) (122,578) (99,914) 7,832 (3,739) (11,821) (10,151) 29,358 4,928 (88,825) (83,897) 17,058 - 7,885 7,885 (28,805) - - (2,045) (1,625) 827,979 2,229,103 4,685,442 4,662,192 - - 225,000 - (56,621), (230,914) (454,271) (978,571) (134,682) (151,335) (286,017) (439,992) $ (191,303) $ (382,249) $ (515,288) $ (1,418,563) CITY OF ELK RIVER, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2000 (With comparative totals for the year ended December 31, 1999) SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Amortization of band discount $ - - $ 3,016 Fixed assets purchased on account - - Disposal of fixed assets - 15,608 29,847 68 Garbage Municipal Sewage Collection Liquor Disposal CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of fixed assets $ - $ (9,985) $ (99,143) Principal paid on bonds - (80,000) (170,000) Interest paid on bonds - (66,040) (180,485) NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES - (156,025) (449,628) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 17,402 75,439 190,115 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 32,721 538,047 793,159 CASH AND CASH EQUIVALENTS, JANUARY 1 222,950 878,888 2,634,965 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 255,671 $ 1,416,935 $ 3,428,124 SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Amortization of band discount $ - - $ 3,016 Fixed assets purchased on account - - Disposal of fixed assets - 15,608 29,847 68 EXHIBIT E-3 Continued 5,633 $ 341 $ 8,990 $ 8,649 - - - 86,227 2,704 81,133 129,292 51,280 69 Totals Water Electric 2000 11999 (506,791) $ (1,780,097) $ (2,396,016) $ (2,926,265) (185,000) (55,000) (490,000) (432,500) (134,663) (14,111) (395,299) (411 ,969) (826,454) (1,849,208) (3,281,315) (3,770,734) 83,375 95,256 461,587 282,251 (106,403) 92,902 1,350,426 (244,854) 1,499,657 1,315,004 6,551,464 6,796,318 1,393,254 $ 1,407,906 $ 7,901,890 $ 6,551,464 5,633 $ 341 $ 8,990 $ 8,649 - - - 86,227 2,704 81,133 129,292 51,280 69 aWFOWC , CITY OF ELK RIVER, MINNESOTA GARBAGE COLLECTION FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 2000 AND 1999 FUND EQUITY Retained earnings - Unreserved 245,500 225,157 TOTAL LIABILITIES AND FUND EQUITY $ 315,135 $ 296,295 70 2000 1999 ASSETS CURRENT ASSETS Cash and investments $ 255,671 $ 222,950 Accounts receivable 7,598 10,194 Interest receivable 2,115 2,125 Due from other funds 49,751 61,026 TOTAL ASSETS $ 315,135 $ 296,295 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts payable $ 62,867 $ 61,936 Salaries and benefits payable - 389 Deferred revenue 6,768 8,813 TOTAL LIABILITIES 69,635 71,138 FUND EQUITY Retained earnings - Unreserved 245,500 225,157 TOTAL LIABILITIES AND FUND EQUITY $ 315,135 $ 296,295 70 EXHIBIT E-5 CITY OF ELK RIVER, MINNESOTA GARBAGE COLLECTION FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 2000 AND 1999 OPERATING REVENUE Special assessments $ 6,904 $ 8,938 Charges for services 679,911 745,866 TOTAL OPERATING REVENUE 686,815 754,804 OPERATING EXPENSES Personal services 4,685 4,843 Professional services 24,486 25,077 Supplies and miscellaneous 4,829 12,298 Contractual services 757,043 706,465 TOTAL OPERATING EXPENSES 791,043 748,683 OPERATING INCOME (LOSS) (104,228) 6,121 NONOPERATING REVENUE Interest income 17,392 6,457 Customer penalties 9,931 10,962 Miscellaneous revenue 97,248 99,174 TOTAL NONOPERATING REVENUE 124,571 116,593 NET INCOME 20,343 122,714 RETAINED EARNINGS, JANUARY 1 225,157 102,443 RETAINED EARNINGS, DECEMBER 31 $ 245,500 $ 225,157 71 CITY OF ELK RIVER, MINNESOTA GARBAGE COLLECTION FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2000 AND 1999 CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by operating activities - Other income related to operations (Increase) decrease in assets: Accounts receivable Due from other funds Increase (decrease) in liabilities: Accounts and contracts payable Salaries and benefits payable Deferred revenue NET CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY I CASH AND CASH EQUIVALENTS, DECEMBER 31 72 $ (104,228) 107,179 2,596 11,275 931 (389) ^A r 15,319 32,721 222,950 $ 255,671 1001-41 $ 6,121 110,136 1,615 2,609 (200) 332 (1,625) 118,988 124,288 $ 222,950 CITY OF ELK RIVER, MINNESOTA MUNICIPAL LIQUOR FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 2000 AND 1999 ASSETS, CURRENT ASSETS FW0190311112M 2000 1999 - ----------- Cash and investments $ 1,416,935 $ 878,888 Interest receivable 11,722 8,379 Due from component unit - 225,000 Inventories 411,238 362,616 TOTAL CURRENT ASSETS 1,839,895 1,474,883 FIXED ASSETS 920,000 1,000,000 Land and improvements 823,761 823,761 Buildings 1,394,887 1,394,832 Equipment, furniture and fixtures 149,203 154,881 TOTAL FIXED ASSETS, COST 2,367,851 2,373,474 LESS ACCUMULATED DEPRECIATION 443,128 372,201 TOTAL FIXED ASSETS, NET 1,924,723 2,001,273 TOTAL ASSETS $ 3,764,618 $ 3,476,156 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts payable $ 207,695 $ 191,588 Salaries and benefits payable 28,537 26,284 Bonds payable, current portion 80,000 80,000 TOTAL CURRENT LIABILITIES 316,232 297,872 LONG-TERM LIABILITY Bonds payable, less current portion above 920,000 1,000,000 TOTAL LIABILITIES 1,236,232 1,297,872 FUND EQUITY Retained earnings - Unreserved 2,528,386 2,178,284 TOTAL LIABILITIES AND FUND EQUITY $ 3,764,618 $ 3,476,156 73 CITY 8FELK RIVER, MINNESOTA MUNICIPAL LIQUOR FUND COMPARATIVE STATEMENTS QFREVENUE, EXPENSES AND CHANGES |NRETAINED EARNINGS YEARS ENDED DECEMBER 31.28OOAND 1QQQ 74 EXHIBIT E-8 * 3,478.938 2,652,392 ---'- 270,G17 2,424 22.317 6.478 5.987 T8.&24 13.103 83.827 22,309 1.524 347.583 206,333 %of Sales 100.00 70.24 23.78 7.78 0.64 0.18 0.17 2.21 0.38 0.98 1242 11.84 0.64 0.04 (2.O4) 0.010, (1,3G) 9,98 (4.00) 5.92 % of 2000 Sales OPERATING REVENUE 5a|oe $ 3.788,048 100.00 Less cost mfsales 2,848.328 7514 GROSS PROFIT 041.722 24�06 OPERATING EXPENSES Personal services 270.743 738 Professional services 2.100 0.06 Utilities 23,025 0.63 Maintenance and repairs 6.548 0.17 |neormnoa 4.366 0.12 Depreciation 75.664 2.00 Printing and advertising 14.261 030 Supplies and miscellaneous 44.700 1.18 TOTAL OPERATING EXPENSES 451.197 11.92 OPERATING INCOME 490,525 12.94 NO0[)PERAT|NGREVENUE (EXPENSE) Interest income 78,782 2.08 Miscellaneous revenue 4.106 0.11 Interest expense (66.040) (1.74) Loss ondisposal offixed assets (10.871) (0.29) TUTALNQNOPERAT|NG REVENUE (EXPENSE) 5.977 Q�16 INCOME BEFORE TRANSFERS 496.502 1110 OPERATING TRANSFERS OUT (146'400) (3.88) NET INCOME 850.102 9.24 ==== RETAINED EARNINGS, JANUARY 1 2.178.284 RETAINED EARNINGS, DECEMBER 31 $ 2^528.388 74 EXHIBIT E-8 * 3,478.938 2,652,392 ---'- 270,G17 2,424 22.317 6.478 5.987 T8.&24 13.103 83.827 22,309 1.524 347.583 206,333 %of Sales 100.00 70.24 23.78 7.78 0.64 0.18 0.17 2.21 0.38 0.98 1242 11.84 0.64 0.04 (2.O4) 0.010, (1,3G) 9,98 (4.00) 5.92 CITY OF IELK RIVER, MINNESOTA MUNICIPAL LIQUOR FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2000 AND 1999 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Due from component unit 2000 1'999 CASH FLOWS FROM OPERATING ACTIVITIES (146,400) (141,250) Operating income 490,525 $ 394,71,1 Adjustments to reconcile operating income 78,600 (141,250) to net cash provided by operating activities - Other income related to operations 4,106 1,524 Depreciation 75,664 76,924 (Increase) decrease in assets: (66,040) (70,961) Inventories (48,622) (29,742) Prepaid items - 1,447 Increase (decrease) in liabilities: Accounts payable 16,107 13,884 Salaries and benefits payable 2,253 519 NET CASH PROVIDED BY OPERATING ACTIVITIES 540,033 459,267 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Due from component unit 225,000 - Operating transfer to other funds (146,400) (141,250) NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES 78,600 (141,250) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITES Acquisition of fixed assets (9,985) (5,662) Principal paid on bonds (80,000) (75,000) Interest paid on bonds (66,040) (70,961) NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES (156,025) (151,623) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 75,439 20„699 NET INCREASE IN CASH AND CASH EQUIVALENTS 538,047 187,093 CASH AND CASH EQUIVALENTS, JANUARY 1 878,888 691,795 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 1,416,935 $ 878,888 SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Disposal of fixed assets $ 15,608 $ - IN EXHIBIT E-10 CITY DFELK RIVER, MINNESOTA SEWAGE DISPOSAL FUND COMPARATIVE BALANCE SHEETS DECEMBER 31.28U8AND 1Q09 76 2000 1999 ASSETS CURRENT ASSETS Cash and investments $ 3.428.124 0 2.834.985 Interest receivable 28.361 25.122 Due from other funds 78.231 67.725 TOTAL CURRENT ASSETS 3.534.716 2,727.812 FIXED ASSETS Land and improvements 411.095 411,895 Waste water treatment plant 8.556.723 8.424,914 Collection system 2.234.480 2.200.272 Machinery and equipment 271,902 368.703 TOTAL FIXED ASSETS, COST 11.474,280 11 '404,984 LESS ACCUMULATED DEPRECIATION 4,446.327 4.152.067 TOTAL FIXED, ASSETS, NET 7,027.953 7.252.317 OTHER ASSETS Unmmortizedbond discount 38.806 41.622 TOTALASGETS $ 10.601,275 $ 10.021.751 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts and contracts payable $ 10.155 $ 1O.304 Salaries and benefits payable 15.522 12,177 Bonds payable, current portion 188.000 170,008 TOTAL CURRENT LIABILITIES 213.677 192.481 LONG-TERM LIABILITY Bonds payable, less current portion above 8.805,000 3'185.008 TOTAL LIABILITIES 3,218,877 3.377'481 FUND EQUITY Contributed capital 2,887.733 2.687,733 Retainedeanningo- Unresemed 4.694.865 3.056.537 TOTAL FUND EQUITY 7.382.598 6.644.270 TOTAL LIABILITIES AND FUND EQUITY $ 10.801,275 $ 10.021.751 76 CITY OF ELK RIVER, MINNESOTA SEWAGE DISPOSAL FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 2000 AND 1999 OPERATING REVENUE Charges for services OPERATING EXPENSES Personal services Professional services Utilities Maintenance and repairs Insurance Depreciation Supplies and miscellaneous TOTAL OPERATING EXPENSES OPERATING INCOME NONOPERATIN'G REVENUE (EXPENSE) Interest income Sewer connection charges Miscellaneous revenue Interest expense Loss on disposal of equipment Amortization of bond discount TOTAL NONOPERATING REVENUE (EXPENSE) INCOME BEFORE TRANSFERS OPERATING TRANSFERS OUT NET INCOME RETAINED EARNINGS, JANUARY 1 RETAINED EARNINGS, DECEMBER 31. im EXHIBIT E-11 $ 877,655 797,101 206,941 207,111 26,931 6,278 68,560 62,602 75,731 13,438 8,321 15,266 318,946 316,064 51,439 71,259 756,869 692,018 120,786 105,083 193,354 88,707 630,643 369,590 1,943 2,081 (180,485) (188,914) (4,561) - (3,016) (3,015) 637,878 268,449 758,664 373,532 (20,336) (8,000) 738,328 365,532 3,956,537 3,591,005 $ 4,694,865 $ 3,956,537 EXHIBIT E-12 CITY OF ELK RIVER, MINNESOTA SEWAGE DISPOSAL FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2000 AND 1999 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfer to other funds (20,336) (8,000) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITES Acquisition of fixed assets (99,143) (129,359) Principal paid on bonds (170,000) (160,000) Interest paid on bonds (180,485) (188,914) NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES (449,628) (478,273) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 190,115 85,691 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 793,159 378,042 CASH AND CASH EQUIVALENTS, JANUARY 1 2,634,965 2,256,923 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 3,428,124 $ 2,634,965 SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Amortization of bond discount $ 3,016 $ 3,015 Disposal of fixed assets 29,847 - 78 2000 1999 CASH FLOWS FROM OPERATING ACTIVITIES Operating income $ 120,786 $ 105,083 Adjustments to reconcile operating income to net cash provided by operating activities - Other income related to operations 632,586 371,671 Depreciation 318,946 316,064 (Increase) decrease in assets: Accounts receivable - 70 Due from other funds (10,506) (5,787) Increase (decrease) in liabilities: Accounts payable 7,851 (3,912) Salaries and benefits payable 3,345 (4,565) NET CASH PROVIDED BY OPERATING ACTIVITIES 1,073,008 778,624 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfer to other funds (20,336) (8,000) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITES Acquisition of fixed assets (99,143) (129,359) Principal paid on bonds (170,000) (160,000) Interest paid on bonds (180,485) (188,914) NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES (449,628) (478,273) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments 190,115 85,691 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 793,159 378,042 CASH AND CASH EQUIVALENTS, JANUARY 1 2,634,965 2,256,923 CASH AND CASH EQUIVALENTS, DECEMBER 31 $ 3,428,124 $ 2,634,965 SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Amortization of bond discount $ 3,016 $ 3,015 Disposal of fixed assets 29,847 - 78 CITY OF ELK RIVER, MINNESOTA WATER FUND COMPARATIVE BALANCE SHEETS DECEMBER 31, 2000 AND 1999 ASSETS CURRENT ASSETS Cash and investments Accounts receivable Other receivables Inventories Prepaid items TOTAL CURRENT ASSETS FIXED ASSETS Plant and production Distribution Equipment, furniture and fixtures TOTAL FIXED ASSETS, COST LESS ACCUMULATED DEPRECIATION TOTAL FIXED ASSETS, NET OTHER ASSETS Restricted asset - investments Unamortized bond discount TOTAL OTHER ASSETS TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts payable Salaries and benefits payable Due to other funds Accrued interest Bonds payable, current portion TOTAL CURRENT LIABILITIES LONG-TERM LIABILITY Bonds payable, less current portion above TOTAL LIABILITIES FUND EQUITY Contributed capital Retained earnings - Reserved for construction Unreserved TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY 79 01 1=1 tj $ 1,393,254 56,138 46,573 14,271 7,448 1,517,684 5,189,574 1,677,911 74,412 6,941,897 EXHIBIT E-13 1999 $ 1,499,657 42,930 33,743 12,061 7,584 1,595,975 5,030,736 1,344,824 63,118 6,438,678 $ 18,111 $ 20,338 429,739 295,057 47,473 52,237 477,212 347,294 $ 7,425,777 $ 7,053,492 $ 18,111 $ 20,338 48,711 52,450 9,522 4,594 54,357 57,862 200,000 185,000 330,701 320,244 2,370,000 2,570,000 2,700701 2,890,244 1,061,925 1,061,925 429,739 295,057 3,233,412 2,806,266 4,725,076 4,163,248 $ 7,425,777 $ 7,053,492 CITY OF ELK RIVER, MINNESOTA WATER FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 2000 AND 1999 nnnn `+ r 4 nnn Charges for services $ 755,462 $ 627,449 OPERATING EXPENSES' 524,695 433,571 Personal services 99,224 86,218 Professional services 23,448 13,446 Utilities 128,512 96,521 Maintenance and repairs 132,783 78,298 Insurance 16,808 16,014 Depreciation 185,266 163,423 Supplies and miscellaneous 29,001 35,352 TOTAL OPERATING EXPENSES 615,042 489,272 OPERATING INCOME 140,420 138,177 NONOPERATING REVENUE (EXPENSES) Interest income 83,375 98,406 Connection charges 524,695 433,571 Customer penalties 6,702 5,928 Miscellaneous revenue 46 - Interest expense (131,158) (138,987) Amortization of bond discount (5,631) (5,293) Miscellaneous expense - (1,456) TOTAL NONOPERATING REVENUE (EXPENSES) 478„029 392,169 INCOME BEFORE TRANSFERS 618,449 530,346 OPERATING TRANSFERS OUT (56,621) (607,347) NET INCOME (LOSS) 561,828 (77,001) RETAINED EARNINGS, JANUARY 1 3,101,323 3,178,324 RETAINED EARNINGS, DECEM'B'ER 31 $ 3,663,151 $ 3,101,323 80 CITY OF ELK RIVER, MINNESOTA WATER FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2000 AND 1999 GASH FLOWS FROM OPERATING ACTIVITIES Operating income Adjustments to reconcile operating income to net cash provided by operating activities - Other income related to operations Depreciation (Increase) decrease in assets: Accounts receivable Other receivables Inventories Prepaid items Increase (decrease) in liabilities: Accounts payable Salaries and benefits payable Due to other funds NET CASH PROVIDED BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfer to other funds Transfers to restricted funds NET CASH USED BY NONCAPTIAL FINANCING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of fixed assets Principal paid on bonds Interest paid on bonds NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASHEQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 2000 $ 140,420 531,443 185,266 (13,208) (12,830) (2,210) 136 (2,227) (3,739) 4,928 827,979 (56,621) (134,682) (191, 303) (506,791) (185,000) 83,375 (106,403) EXHIBIT E-1'5 1999 $ 138,177 438,043 163,423 (4„656) 33,865 282 (2,470) 12,064 7,578 475 786,781 (607,347) 1�n& „&�„ (902,404). (1,151,184) (145,000) (1,431,236) 98,406 (1,448,453) . — $ 1,393,254 $ 1,499,657 SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Amortization of bond discount $ 5,633 Fixed assets purchased on account - Disposat of fixed assets 2,704 RE $ 5,293 8,218 156 CITY OF ELK RIVER, MINNESOTA ELECTRIC FUND COMPARATIVE BALANCE SHEETS DECEMBER 31.20QOAND 1999 ASSETS CURRENT ASSETS Cash and investments Accounts receivable Other receivables Inventories Prepaid items TOTAL CURRENT ASSETS FIXED ASSETS Plant and production Distribution Equiprnent, furniture and fixtures TOTAL FIXED ASSETS, COST LESS ACCUMULATED DEPRECIATION TOTAL FIXED ASSETS, NET OTHER ASSETS Resthohedamset-investments Unemorbzedbond discount TOTAL ASSETS$ 15,608,609 E-119 $ 1/407900 $ 1.315.004 935.329 870.610 109.855 87.931 450.782 501.400 23.873 31.248 2.827.755 2,806,193 2,847,614 2.843.903 14.741.998 13.160.198 2.754.278 2.640.824 20.343.888 18.644.925 8.444,288 7.887.606 11.889.603 10.857.319 781.025 629.690 227 568 &-)".r_0 $ 14.393.770 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts payable Salaries and benefits payable Customer deposits Due to other funds Accrued interest Bonds payable, current portion LONG-TERM LIABILITY Bonds payable, less current portion above TOTAL LIABILITIES FUND EQUITY Contributed capital Retained earnings - Reserved for emergency Reserved for construction Unreserved TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY 83 351,813 164,442 106,115 129,626 1,999 57,500 811,495 60,000 871,495 1,245,039 85,000 696,025 12,711,050 14,737,114 $ 15,608,609 r .. 474,389 176,063 98,250 218,451 3,369 55,000 1,025,522 117,500 1,143, 022 1,245,039 87,201 542,489 11, 376, 019 13,250,748 $ 14,393,770 EXHIBIT E-17 CITY OF ELK RIVER, MINNESOTA ELECTRIC FUND COMPARATIVE STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS YEARS ENDED DECEMBER 31, 2000 AND 1999 Charges for services $ 9,389,846 $ 8,902,004 OPERATING EXPENSES Personal services 828,615 773,579 Professional services 67,275 71,195 Purchased power 5,497,606 4,863,987 Utilities 48,996 42,000 Maintenance and repairs 612,087 547,662 Insurance 53,081 95,070 Depreciation 812,124 739,411 Supplies and miscellaneous 349,005 347,901 TOTAL OPERATING EXPENSES 8,268,789 7,480,805 OPERATING INCOME 1,121,057 1,421,199 NONOPERATING REVENUE (EXPENSES) Interest income 95,256 72,155 Connection charges 459,195 316,600 Customer penalties 71,916 71,969 Miscellaneous revenue 15,077 25,452 Interest expense (12,741) (16,023) Amortization of bond discount (341) (341) Loss on disposal of fixed assets (25,690) - Miscellaneous expense (6,449) (17,191) TOTAL NONOPERATING REVENUE (EXPENSES) 596,223 452,621 INCOME BEFORE TRANSFERS 1,717,280 1,873,820 OPERATING TRANSFERS OUT (230,914) (221,974) NET INCOME 1,486,366 1,651,846 RETAINED EARNINGS, JANUARY 1 12,005,709 10,353,863 RETAINED EARNINGS, DECEMBER 31 $ 13,492,075 $ 12,005,7091 84 CITY OF ELK RIVER, MINNESOTA ELECTRIC FUND COMPARATIVE STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2000 AND 1999 CASH FLOWS FROM OPERATING ACTIVITIES Operating income Adjustments to reconcile operating income to net cash provided by operating activities - Other income related to operations Depreciation (Increase) decrease in assets: Accounts receivable Other receivables Inventories Prepaid items Increase (decrease) in liabilities: Accounts payable Salaries and benefits payable Customer deposits Due to other funds NET CASH PROVIDED, BY OPERATING ACTIVITIES CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating transfer to other funds Transfers to restricted funds NET CASH USED BY NONCAP11TAL FINANCING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of fixed assets Principal paid on bonds Interest paid on bonds NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, JANUARY 1 CASH AND CASH EQUIVALENTS, DECEMBER 31 2000 $ 1,121,057 539,739 812,124 (64,719) (21,924) 50,608 7,375 (122,576) (11,621) 7,865 (88,825) (230,914) (151,335) (382,249) (1,780,097) (55,000) — —.1 (1,849,208) 95,256 92,902 EXHIBIT E-18 $ 1,421,199 396,830 739,411 (88,504) 19,649 48,048 (17,366) (14,004) 25,494 (28,805) 2,518,532 (221,974) (144,935) (366,909) (1,640,060) (52,500) — —1 (1,709,602) 72,155 514,176 — .1. $ 1,407,906 $ 1,315,004 SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Amortization of bond discount $ 341 Fixed assets purchased on account - Disposal of fixed assets 81,133 85 $ 341 78,009 51,124 ■ i � L_ � s �- - 2 �,, 5 � Agency funds are established to account for assets held by the City as an agent for others. Agency funds are purely custodial and do not involve measurement of results of operations. Developer Fee Escrow - This fund is used to account for expenses incurred by the City for private development projects. These costs are reimbursed by the developer. CITY OF ELK RIVER, MINNESOTA AGENCYFUNDS COMBINING STATEMENT OF CHANGES IN ASSETS ANG► LIABILITIES YEAR ENDED DECEMBER 31, 2000 DEVELOPER FEE ESCROW ASSETS Cash Accounts receivable TOTAL ASSETS LIABILITY Refundable deposits payable Balance nua 1 Additions Deletions EXHIBIT F-1 Balance December 31 $ 33,309 $ 23,347 $ - $ 56,656 31,120 3„426 - 34,546 64,429 26,773 - 91,202 $ 64,.429 $ 26,773 $ - 86 $ 91,202 GENERAL FIXED ASSETS ACCOUNT GROUP General fixed assets are those fixed assets which are not accounted for in an enterprise fund. To be classified as a fixed asset in this category, a specific piece of property must meet three attributes: 1. Tangible nature 2. A life longer than the current fiscal year 3. A significant value I�I1319M CITY OF ELK RIVER, MINNESOTA GENERAL FIXED ASSETS ,ACCOUNT GROUP SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE DECEMBER 31, 2000 AND 1999 2000 199'9 GENERAL FIXED ASSETS Land $ 4,213,545 $ 3,661,690 Buildings and structures 8,148,758 8,643,147 Other improvements 1,447,167 851,985 Furniture and equipment 4,602,363 4,515,390 TOTAL GENERAL FIXED ASSETS $ 18,411,833 $ 17,662,212 INVESTMENT IN GENERAL FIXED ASSETS General and special revenue funds $ 15„438,282 $ 15,445,491 Capital projects funds 1,626,551 1,538,721 Donation 1,347,000 678,000 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $ 18,411,833 $ 17,662,212 87 EXHIBIT G-2 CITY OFELK RIVER.MUNNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE OFGENERAL FIXED ASSETS -BYFUNCTION DECEMBER 31.208O 88 Buildings Furniture and Other and Total Land Structures Improvements Equipment FUNCTION General government $ 3.347.038 $ 683.250 $ 2.187.224 $ 161,970 $ 814.594 Public safety 2.894.892 188.000 578.300 20.248 2.157,658 Public works 1.635.706 27.900 464.982 28,816 1.116.028 Culture &recreation 10.534197 3,363,795 4918182 1,238,132 1,014,088 TOTAL GENERAL FIXED ASSETS $ 18.411 833 $ 4'213546 $ 8,148,758 1,447,167 % 4802363 88 CITY DFELK RIVER, MINNESOTA GENERAL FIXED ASSETS ACCOUNT GROUP SCHEDULE 0FCHANGES |NGENERAL FIXED ASSETS -BYFUNCTION YEAR ENDED DECEMBER 31.2ODO �� General General Fixed Assets Fixed Assets January 1 Additions Deletions December 31 General government 0 3.092.570 $ 1.208`927 $ 954.459 $ 3.347.038 Public safety 3.808.904 355,199 1.270.211 2.894.892 Public works 1,897.123 111.793 173.210 1,635.788 Culture and recreation 9062615 1,702,080 230.498 10,534,197 TOTAL GENERAL FIXED ASSETS $ 17882,212 $ 3377998 $ 2628378 $ 18,411,833 �� GENERAL LONG-TERM DEBT ACCOUNT GROUP General obligation bonds supported by general revenues are obligations of a governmental unit as a whole and not its individual constituent funds. The amount of unmatured long-term indebtedness which is backed by the full faith and credit of the government (excluding enterprise fund debt) is recorded and accounted for in the "General Long -Term Debt Account Group". Also, this debt group includes certain liabilities not expected to be liquidated with expendable available financial resources. CITY OFELK RIVER, MINNESOTA GENERAL LONG-TERM DEBT ACCOUNT GROUP STATEMENT OFGENERAL LONG-TERM DEBT DECEMBER 31.2DO8AND 199B AM0UNTAVALABLE Debt service funds AMOUNT TDBEPROVIDED Future tax levies and assessments TOTAL AMOUNT AVAILABLE AND TO BE PROVIDED GENERAL LONG-TERM DEBT PAYABLE -- Compensated absences payable Contract for deed General obligation special assessment bonds General obligation tax increment bonds General obligation fire equipment bonds General obligation equipment certificates EDA revenue bonds EDA revenue refunding bonds Storm sewer revenue bonds Ice arena bonds Stabs loan for dam repair TOTAL GENERAL LONG-TERM DEBT PAYABLE 90 2000 $ 6.039,757 EXHIBIT H-1 um 15,404,74215,570,960 $ 21,444,499$ 21,038.853 $ 319.071 $ 269.692 329.891 411.800 13.640.000 13.575.000 1'638.500 896.500 89.000 125.000 547.450 520,425 - 135,000 2'295.000 2.295,000 760.000 825.000 1,805.880 1.895,000 47,087 90.536 $ 21.444499 $ 21,038,953 CITY OF ELK RIVER, MINNESOTA SCHEDULE OF BONDS PAYABLE DECEMBER 31, 2000 Interest Rates Final Issue Maturity Date Date SPECIAL ASSESSMENT BONDS 2.75-520 10/11/93 2/1/09 G.O. Improvement Bonds, Series 1992A 4,30-6.25 6/1/92 2/1/08 G.O. Improvement Bonds, Series 19938 2.75-4.50 10/1/93 2/11/04 G.O. Improvement Bonds, Series 1994A 4.20-6.00 6/1/94 211/01 G.O. Improvement Bonds, Series 19968 4.50-5.00 7/11/96 2/1/04 G.O. Improvement Bonds, Series 1997A 4.375-5.00 8/11/97 2/1/13 G.O. Improvement Bonds, Series 1998A 3.55-4.30 12/11/98 2/11/09 G.O. Improvement Bonds, Series 1999A 4.10-5.00 7/1/99 2/1/15 G.O. Improvement Refunding Bonds, Series 1999B 430-4.60 12/1/99 211/04 G.O. Improvement Bonds, Series 2000B 4.40-5.40 11/11/00 2/11/16 G.O. Improvement Refunding Bonds, Series 20000 4.40-4.70 1111/00 2/1/08 TOTAL REVENUE BON G.O. Water Revenue Bonds, Series 19936 2.75-520 10/11/93 2/1/09 G.O. Sewer Revenue Bonds, Series 1994E 5.40-5.80 6/11/94 2/1109 G.O. Storm Sewer Revenue Bonds, Series 1994C 5,40-5.80 6/1/94 12/1/09 G.O. Water Revenue Bonds, Series 1994D 5.80-6.50 12/1/94 2/11/10 G.O. Sewer Revenue Bonds, Series 1996A 5.00-5.80 7/11/96 2/1/16 G.O. Ice Arena Bonds, Series 19960 5.70 8/11/96 12/1113 Liquor Revenue Bonds 6.35 7/11/97 2/11/07 G.O. Water Revenue Bonds, Series 1997E 4.00-4.90 811/97 2/11/07 City Hall and Law Enforcement Facility 5.56 12/1/98 2/1103 Revenue Refunding Bonds 4.75-5.00 12/1/97 2/11/111 G.O. Electric Equipment Certificates, Series 1998 4.68 1/6/98 8/1/02 G.O. Water Revenue Bonds, Series 19988 4.10-5.00 12/1/98 2/1/14 TOTAL GENERAL LONG-TERM DEBT G.O. Fire Equipment Bonds, Series 1989A 6.30-6.80 12/1/89 2/1/01 G.O. Tax Increment Bonds, Series 19898 8.70-930 12/1/89 2/1/07 G.O. Tax Increment Bonds, Series 1990A 9.25-9.90 4/11/90 2/11/10 G.O. Tax Increment Bonds, Series 1992D 7.90 11/10192 2/11/07 G.O. Tax Increment Bonds, Series 1994D 4.50-5.85 7/11/94 2/11/07 G.O. Equipment Certificates, Series 1996 5.00 12/1/96 2/1/01 G.O. Equipment Certificates, Series 1997 5.00 5/1/97 2/1/02 G.O. Equipment Certificates, Series 1998 5.56 12/1/98 2/1103 G.O. Equipment Certificates, Series 1999 5,00 11/11/99 2/11/04 G.O. Equipment Certificates, Series 2000 6.00 11/11/00 2/11/05 G.O. Tax Increment Bonds, Series 2000A 4.45-5.30 11/1100 2/1/15 G.O. Tax Increment Refunding Bonds, Series 2000D 6.70-7.40 11/11/00 2/1/07 TOTAL TOTAL BONDS PAYABLE ZE EXHIMT H-2 480,000 410,000 400,000 160,000 255,000 81,000 311.500 113,550 182.750 198,200 800,000 510,000 3,882,000 2,248,950 $ 27,621,450 Bond Authorized 12/31/00 amd|ssmed �Redoemed Outstanding � 2,350.000 $ 2,200.000 150,000 2,400.000 1,660,000 748.800 3,495.000 1,480.000 2.015,0010 500'000 205.000 295,000 1,165.000 380.000 785.000 1.375.000 280.000 1.175,000 6.725,000 - 5.725,000 580,000 ' 680.000 1.275'000 - 1,275.000 SOOOOO - 9100000 19.765.000 6.125008 13640008 1.125.000 350'000 775.080 1.280.000 360'000 920.000 1.080,000 320,000 760.000 1.010.000 245,000 785.000 2.856,000 390,000 2.285.000 2.100.000 295`080 1.805.000 1.245.000 245.000 1.008.000 835.000 80.000 245,000 2.295.000 - 2.295,000 2�5.ODO 107.500 117,500 020000 35.000 785.080 14,170,000 2437500 11732500 480,000 410,000 400,000 160,000 255,000 81,000 311.500 113,550 182.750 198,200 800,000 510,000 3,882,000 2,248,950 $ 27,621,450 n n Cj C� - - - - - - - coo 0 (D (D 0 Cl (D 0 0 0 0 0 (D C) M- NNNN"NNNNCNNNN ... 93 r-_ m N CJ m IT w N 00 LO N cc LO w m r r Lr) (D ' r LO LO LO I- r N N m (N CCD Sr 0) C) (D 0)rr (7) Cr) Cl) - r - co C6 C6 r,-: ti C,4 C4 6 r-: N, (- C,) C; (6 C4 r� E 0 0) r� (D LO ItT M N C14 - - - co (D W CD U) 0 IT Vol 0 0 0 CO o LL) LC) ppoogoopooc>00 O Q) C)N 1-- 0 n 0 0 CD 0 CS 0 0 0 a 0 0 LO C 76 C� cNi Oct l3i 'Cr q IQ q q 0 q q O C� q CD a) a- - DD N IT �T ON U) U) o0 0 LO 0 0 OD 0 C� CL -,t Cj 6 r- co m o C5 tZ F., F, co co 04 Cm) N M cq N N m by z M 0 M M 0 0 T M 0 r.- 0 nr N T CIJ 6G -O 7 C\i 0 n n Cj C� - - - - - - - coo 0 (D (D 0 Cl (D 0 0 0 0 0 (D C) M- NNNN"NNNNCNNNN ... 93 'T U-) U) 0 0 - N 0 0 0 "(i"u) 0 0 0 a r - C) N 0 N 0 r- N 0 M M N - IT M M M CD co Ld(7; (5%C6 (6 (ii 6 C6 C6 Cd C15 06 V) & r-� (d V: — 0 — 0 — 0 0 ' r M M 0 r- Lo CO W CD U) 0 IT Vol 0 0000000000000000 C0 (D OOOOOOOOOOQoonoC� 0 MOOOOQQOOOOOOOOO - - - - - - - - - - - - - - - - U-) - 0 C� CL 0 LO LO LO 0 0 0 Ln 0 0 Co 0 0 0 0 04 v"T N m m m - M M LO N - M 0 M - �T m by z M 0 M M 0 0 T M 0 r.- 0 nr N T CIJ 6G -O 7 r - 0 w z W r". ;r M CD �q M (D W m 0 M r- M M 0 �T - L6 L6 rl: 6 Cd 6 C4 c3i C6 cli C6 G� 6 - M- r 7) 0) (D W O 'T r- o .1 o U) o P- 'T w Iz- W 0 0 �r IT CO CO " N ta co W LLJ E cli W C) C) LnrI 5; W 0 W 'a dOC W Cf) >- co < 0 OOOOOOOOOOOOOC)O(D 0 QQQ0000nClcco(D(DOO 0 Q 00 OOOOOOc(D(DOOOOcOC> 0 W a) Ld (:5 Ld L6 CO 6 6 (:5 L6 td 6 6 6 6 6 L6 6L CL 0) 0) - " " - CO M IT Lf) LD CO CO I- LO OD Cr -q� -,;t� (q q q m r- W LO LO M m m I-- w - - - - - - Lf C6 0 W r 0 N m 'gr m m a N r- 0 N m 0 0 0 m Nt () U) U) M 0 Nr T N P- 0 0 - 0 N M N r- r- w m I,- U) w m r- 'T cli C6 (d C6 00- N 7 CCD 0- C14- 'i` CQ- 00- c')- r-- CO T - co Lo CN 00 0) 0 CO co m 00 IT q cl� q 0) 00 r- LO IT cf) cl) N r r - (D .1) - - - 06 64 ED (Fa 0 Ul) Ul) C> 0 0 0 0 Ck (D (D (D 0 0 C) C) a C> " rl- o LO 0 0 0 0 0 0 0 0 0 0 0 0 LD LO " w 0 Iq 0 LO 0 C) CD C> 0 0 0 0 0 IT C6 C6 CIIF -If 0 L6 ClIf 6 6 L6 & & & & L6 L6 - r- t-- U) V) U) P- r-- (D CO 0 (0 0) - ol 0) (D (D I-- 1-- 04 C14 N. 00 r- 'IT CO 00 r- 0 CN co CN . I n n Cj C� - - - - - - - coo 0 (D (D 0 Cl (D 0 0 0 0 0 (D C) M- NNNN"NNNNCNNNN ... 93 CITY DFELK RIVER, MINNESOTA GENERAL GOVERNMENTAL EXPENDITURES BYFUNCTION (1) LAST TEN FISCAL YEARS (1) Includes General, Special Revenue and Debt Service Funds. (2) Other includes Health and sanitation, Community development and Capital outlay. om- Cufture Fiscal Total General Public Public and Debt Year ExpendbunasGovernment S Works Recreation Sor�o* Oh 1991 $4,687.886 $ 543.795 $1.42Q.217 $545.203 $ 222.087 $1.450.115 $ 491.689 1892 5'237.584 560.945 1.510.778 584.381 335.788 1.546.568 889.224 1893 6^597.127 731.427 1'834.675 824.211 378.063 2.663.123 567.628 1984 6,314.035 807.865 1.871.374 802'367 278.626 2.O23.102 733.011 1895 8.155.218 849.937 1,930.388 645.538 363.722 3.418.519 847.104 1908 7.788.829 992.982 2,138.708 715. 194 370'809 3.027.786 542.470 1097 8.551.129 1.058.761 2,314.313 752'962 709.201 2.874.845 841.047 1098 8.871.497 1'155.809 2,796.509 788,712 859.515 2.315,780 960.192 1999 10,854.441 1.105.907 2.806.627 821,226 903,384 3.895'403 1,441,914 2000 10,030.318 1'337.745 5.129.068 827.475 1.102.577 2.899.628 833.226 (1) Includes General, Special Revenue and Debt Service Funds. (2) Other includes Health and sanitation, Community development and Capital outlay. om- TABLE 2 CITY OF ELK RIVER, MINNESOTA GENERAL FUND EXPENDITURES BY FUNCTION LAST TEN FISCAL YEARS gg Culture Fiscal Total General Public Public and Year Expenditures Government Safety Works Recreation 1991 $ 2,573,112 $ 533,230 $1,400,112 $476,336 $ 163,434 1992 2,777,499 528,580 1,502,069 543,895 202,955 1993 3,033,937 581,606 1,631,356 558,389 262,586 1994 3,441,188 740,994 1,853,254 599,993 246,947 1995 3,610,044 823,042 1,901,051 600,538 285,413 1996 4,041,533 939,769 2,091,111 712,694 297,959 1997 4,389,283 1,033,220 2,271,131 752,962 331,970 1998 5,136,399 1,127,786 2,773,306 767,599 467,708 1999 5,241,161 1,142,257 2,785,666 812,637 500,601 2000 5,804,752 1,299,473 3,077,431 868,426 559,422 gg TABLE 3 CITY OF ELK RIVER, MINNESOTA GENERAL GOVERNMENTAL REVENUES BY SOURCE (1) LAST TEN FISCAL YEARS (1) Includes General, Special Revenue and Debt Service Funds excluding proceeds of long-term debt and transfers. 96 General Licenses Charges for Fiscal Total Property and Inter- Services Year Revenues Taxes Permits Governmental Fines & Misc, 1991 $ 4,948,360 $ 2,141,340 $144,267 $ 1,055,070 $90,970 $ 1,516,713 1992 5,900,408 2,130,492 144,652 1,140,122 103,618 2,381,524 1993 5,559,410 1,856,144 205,783 1,156,773 77,555 2,263,155 1994 6„313,647 2,107,280 244,018 1,487,820 76,370 2,398,159 1995 7,292,684 2,313,772 287,446 1,288,660 73,058 3,32.9,748 1996 7,778550 2,691,630 439,001 1,296,023 80,028 3,271,968 1997 9,726,943 3,116,976 492,321 1,412,134 84,221 4,621,291 1998, 9,922,367 3,302,208 540,826 1,457,796 115,753 4,505,784 1999 11,202,982 3,844,413 511,306 1,598,697 117,614 5,130,952 2000 12,174,969 4,123,465 749,888 1,249,906 119,421 5,932,289 (1) Includes General, Special Revenue and Debt Service Funds excluding proceeds of long-term debt and transfers. 96 CITY 0FELK RIVER, MINNESOTA GENERAL FUND REVENUES BYSOURCE LAST TEN FISCAL YEARS 97 General Licenses Charges for Fiscal Total Property and Inter- Services YearRmvenweo Taxes Permits Governmental Fines &N1iac. 1891 $2.470.710 $1.210.851 $144,267 n 718'125 $00.970 $ 308.697 1982 2.545.294 1.161.536 144.652 815.051 103.618 322.437 1003 2.851.034 1.340.218 205.783 858,946 77.555 408.534 1994 3,217.771 1,520.021 244.018 024,685 76.370 452.677 1996 3.581,808 1,801.547 287.446 941.211 73.058 478.546 1098 4.205,815 2,160'676 439,001 957.127 80.028 588,484 1997 4.747.628 2.470.418 492,221 1.041.804 84,221 058,864 1998 5.080,108 2.629,952 540.826 1.169.774 115.753 839.804 1999 6.358.833 3.057.809 511.308 1.104.281 117.614 587.823 2000 6.043.721 3.288,976 740.888 1.109.078 119.421 778.358 97 0.1 a) 0 z 0 > 0 — — M CY) U") m m m rl- m — 0 0 (1) F- a) -j 6 m 4 m � C:) o CD 6 m m m Ci C) q-) m 6 C) o6 m � = 0 0 0 (D OD a C) C) OD W T r- LO C) C (D M r CD M N t N M N r-: L6 cli IZ cli LO (D C:) 0 LO C14 it r- r C14 (D Lf) (D M 04 C14 It (0 C14 0') 0 C4 C4 N. cl� C4 C4 C6 ff� Mi 0 v LO U) r-- r- C> U) C> r U) r- , N -'r t-- to 0') C) C0 LO IT 00 (D CO M LO C) > (L) a- 10 (1) r- LC) N C4 U') td N (-i N N m 6 LO G� m C5 U") C6 -j C) U) z 0) — cq LO r (D t-- U-) rl- (D > .2 U 0) cj v- U) 'T f (D 00 m Zo F -m 0 w J N 6 L6 0) 6 m 06 m C6 C3) C6 m 06 0) r-- m C6 m r--.: (3) CD -i U) o w _j cr z 0 < z w r") >- Z -i C14 0) (Y) 0 wm 0-) m 0 0 w C: M 0 I- 0 U w N N LO N M m w WIm > — > - LO - CN - LO - 0) - 00 - 0 - Itt - r r-� V-�' — LL ry > CO CY) C) C) CN T t- co — ce) LO C) 0) 00 — 0) U) C) (3) Lij Z'M WC14 0 CO - - - N— - - 04 - C14 - 04 - M - M C6 LU v9r F - LL Co 0 LL ujcc� LO It cl! 0 r - M cc � It lv� (Y) "ZI! C1 ll � (D -7, T C'� (0 '11� a_ > 00 Ct F-- ct M C) M T 0) LO 0 o Z (D (C) CY) T It C\l r- "I LO N M ry F- -j CD — N I- N to M N 0 M CZ C4 C4 C4 1: C4 (Ni (4 cli C6 C6 (3) r- C� co LO cr) LO .0 0) 0) 00 qqr co P— N -U Cli Cli Cli CV Cli C� CV :3 ei tl M M C) C) C) C) 0) (n 00 co rl- C14 rl- 00 LO IT 04 (D — O > C6 V� r-� Gi P-: C-) V7 C4 & (6 H(1) (D —1 co C) A r , N U-) cr) c) 00 C.0 r 4 LO U-) 00 m C14 0) LO CNZ cli C\f cli cli cli C6 cli EI t7 0) 0) M 0) It 0) LO 0) (D 0) 1- m 00 0) 0) 0) 0 6 (n CF) m CY) m 0) m (3) 0) 0') 0 [L- 64 0.1 a) 0 z CITY OF ELK RIVER, MINNESOTA TAXABLE TAX CAPACITY, TAX LEVIES AND TAX CAPACITY RATES (shown by year of tax collectibility) LAST TEN FISCAL YEARS Tax capacity rate General 2000 1999 1998 1997 Tax capacity $ 13,350,134 $ 12,605,479 $ 12,644,462 $ 12,251,909 Tax increment (141,898) (229,853) (261,339) (326,877) Taxable tax capacity 13,208,236 12,375,626 12,383,123 11,925,032 Dam improvements Estimated market value $ 777,417,699 $ 712,271,190 $ 645,916,470 $ 565,528,013 Estimated actual value $ 883,478®872 $ 804,826,203 $ 732,331,599 $ 631,169,657 Tax levies 1.105 1.032 1,177 Total General $ 3,809,355 $ 3,489,800 $ 3,139,536 $ 2,939,800 Debt service 385,617 350,921 348,963 223,133 Library 66,650 62,500 54,950 54,950 Dutch elm - - - - Dam improvements 32,572 32,572 32,572 32,572 Development 145,000 135,000 125,000 125,000 Infrastructure improvements 157,500 159,500 151,473 169,100 Total 4,596,694 4,230,293 3,852,494 3,544,555 Tax capacity rate General 25.067 24,191 21.396 20,472 Debt service 2.538 2.433 2,378 1.554 Library 0.439 0.433 0.375 0.382 Dutch elm - - - - Dam improvements 0.214 0.226 0.222 0.227 Development 0.954 0.936 0.852 0.871 Infrastructure improvements 1,036 1.105 1.032 1,177 Total 30.248 29,324 26.255 24.683 (1) As a result of legislation adopted in 1993, tax levies are now certified to the county as net levies. The City is responsible for deducting the State Homestead and Agricultural Credit Aids from the gross levy to arrive at the net levy which is certified to the county for collection, To allow for a more valid comparison, the gross levy is reported in this table. M TABLE 6 1996 1995 1994 1993 1992 1991 1.667 2.182 (1) 2.435 3.552 3.927 $ 11,028,524 $ 9,895,736 $ 8,670,801 $ 8,529,004 $ 8,557,927 $ 8,215,289 (333,668) (571,376) (619,389) (600,641) (596,612) (562,270)_ 10,694,856 9,324,360 8,051,412 7,928,363 7,961.315 7,653,019 $ 519,105,699 $ 473,795,328 $ 418,427,403 $ 401,108,882 $ 381,819,248 $ 354,456,943 $ 594,622,794 $ 542,720,880 $ 481,504,491 $ 444,688,339 $ 441,409,535 $ 409,776,812 $ 2,619,859 219,387 50,600 32,572 241,401 $ 2,286,082 258,490 50,600 32,572 $ 2,069,582 258,943 41,700 32,572 3,163,819 2,837,744 2,402,797 $ 1,872,900 270,625 41,700 32,572 2,217,797 $ 1,676,112 383,965 41,700 32,572 $ 1,589,453 392,627 41,700 12,500 32,572 2,134,349 2,068,852 19,901 19.301 18.809 17.432 15.503 15.895 1.667 2.182 2.404 2.435 3.552 3.927 0.384 0A27 0.387 0.389 0.386 0A17 - - - - - 0.125 0.247 0.275 0.302 0.304 0M1 0,326 1.834 1.773 - - - 24.033 23.958 21.902 20.560 19.742 20.690 CITY OF ELK RIVER, MINNESOTA TAX CAPACITY RATES - ALL OVERLAPPING GOVERNMENTS DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS Year Taxes TABLE 7 Payable city County School EDA HRA Total 1991 20.690% 18.226% 54.938% 0.685% 0.306% 94.845% 1992 19.742% 19.474% 64.386% 0.698% 0312% 104.612% 1993 20.560% 19.883% 61.209% 0.774% 0,599% 103,025% 1994 21.902% 21.807% 63,103% 0.793% 0.612% 108.217% 1995 23.958% 22.380% 56.511% 0,792% 0.606% 104.247% 1996 24,033% 23.574% 54.530% 0.773% 0.587% 103.497% 1997 24,683% 24,392% 62.359% 0.759% 0.574% 112.767% 1998 26.255% 27.235% 56,539% 0.842% 0,633% 111,504% 1999 29.324% 30.265% 59.886% 0.946% 0.709% 121.130% 2000 30.248% 31.468% 56.027% 0.976% 0.729% 119.448% (1) EDA - Economic Development Authority HRA - Housing and Redevelopment Authority (1) In 1994 the School had an additional referendum tax of .053 percent of market value. In 1995 the School had an additional referendum tax of .051 percent of market value. In 1996 the School had an additional referendum tax of .053 percent of market value. In 1997 the School had an additional referendum tax of .053 percent of market value. In 1998 the School had an additional referendum tax of .051 percent of market value. In 1999 the School had an additional referendum tax of .136 percent of market value. In 2000 the School had an additional referendum tax of. 111 percent of market value. 101 LOW -F - M Great River Energy Bradley Operating L.P. Northern States Power and Great River Energy Menards, Inc Target Corp. Tescorn Corporation Hickman Land Investments B & G Realty, Inc. Alltool Manufacturing Fairview Hospital & Healthcare TOTAL CITY OF ELK RIVER, MINNESOTA PRINCIPAL TAXPAYERS DECEMBER 31, 2000 Type of Business Utility Commercial Utility & RDF Plant Commercial Commercial Industrial Commercial Commercial Industrial Healthcare 102 Wj .1M-4 2000 Percentage Net Tax of Total Net Capacity 'Tax Capacity $769,400 6.22% 416,831 3.37 411,719 3.33 187,693 1,52 165,406 1.34 153,247, 1.24 109,306 0.88 108,276 0.87 103,332 0.84 101,054 0,82 $ 2,526,264 20,43% CITY OF ELK RIVER, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Percentage of Levy Collected 79.04 90.98 89.97 93.50 90.87 91.92 79,87 94.24 96.18 97.69 [IN WIT -Owe Collection Collection of Prior of Year's Total Current Levy Total Year's Year Levy Levy 1991 $ 380,093 $ 300,436 1992 381,822 347,378 1993 673,137 605,652 1994 1,093,726 1,022,634 1995 1,226,036 1,114,094 1996 1,345,870 1,237,131 1997 1,245,284 994,551 1998 1,248,370 1,176,468 1999 1,205,017 1,158,992 2000 1,628,510 1,590,930 Percentage of Levy Collected 79.04 90.98 89.97 93.50 90.87 91.92 79,87 94.24 96.18 97.69 [IN WIT -Owe Collection Ratio of Prior of Total Year's Total Collections Levy Collections To Levy $ 97,231 $ 397,667 104,62 95,552 442,930 116.00 89,899 695,551 10133 62,067 1,084,701 99,17 43,934 1,158,028 94.45 80,769 1,317,900 97.92 104,789 1,099,340 88.28 22,542 1,199,010 96.05 55,994 1,214,986 100.83 24,601 1,615,531 99.20 CITY OF ELK RIVER, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN DECEMBER 31, 2000 Market Value Debt Limit: 2.0% of market value (Note A) Total Bonded Debt $ 27,621,450 Less: (Note B) Special Assessment Bonds (13,640,000) Revenue Bonds (11,732,500) General Obligation Tax Increment Financing Bonds (1,636,500) Total Debt Applicable to Debt Limit Legal Debt Margin Note (A): M.S.A. Section 475.53 (Limit on Net Debt) 1111F.11-411111mu# $ 777,417,699 $15,548,354 6112,450 $14,935,904 "Subdivision 1. Generally. Except as otherwise provided in Sections 475.51 to 475.75, no municipality , except a school district or a city of the first class, shall incur or be subject to a net debt in excess of 2.0 percent of the market value of taxable property in the municipality." Note (B): M.S.A. Section 475.51 (Definitions:) "Subdivision 4, 'Net Debt' means the amount remaining after deducting from its gross debt the aggregate of the principal of the following: 1. Obligations, issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially benefitted, thereby, including those which are general obligations of the municipality issuing them, if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments. 2. Warrants or orders having no definite or fixed maturity. 3. Obligations payable wholly from the income from revenue-producing conveniences. 4. Obligations issued to create or maintain a permanent improvement revolving fund. 5. Obligations issued for the acquisition and betterment of public water works systems, and public lighting, heating or power systems and of any combination thereof, or for any other public convenience from which a revenue is or may be derived. 6. Amount of all money and the face value of all securities held as a sinking fund for the extinguishment of obligations other than those deductible under this, subdivision. 7. All other obligations which under the provisions of the law authorizing their issuance, are not to be included in computing the net debt of the municipality." 104 r s Qco M art (-4 o U) 0 v I1 LO g> -0C: CL Ce) CTD CLD U-)7 c CLD cf r LCJ ct ,yaam/� C s3 ny iW 0 f4- C4� t 'N LO T r C) P C) 01 CD it C6C7 r O ® CD N C) OD C) Cil CC) LC1 N h - m C\I 617* C"! v N. N /L1 p - 0 CL) LO Cr1 NT r w cf CSL) N LC> CCs N C3 r f`^- OJ LO C'3 T C:7 M 0 70 C) CL C) -0 0 Lif ©Q 0 U UC M m 00 N U -)Q ZH W IL Q Cls ,U j T 14 .® C3 N Q T 00 , co T -4 -,T r N "It w N CJ CO 1`- LCs d' r N C4 N C7 C1 Ci Ln CLT GCs llJLCL T r r r T T r r r T 0 a- CCi I Cil C�3 a Lis Co r --co 0 C? i9 lip di CT1 (i1 Cis m C)1 m Cil m 0 Cil CTs Cis m m CTs LI? CT1 m CTs co 105 Cts C tll Ca tl? C_ 0 in CC1 c 0 3 ra C) L1 C> 0 C) N m C1) C C1 tU "� L2 Cis L� E CV ZT W C C o 0 a) cn Zn L*aT O in _ w CL CL N L1 CT7 cn r "�1 T C.1 T- W r N G7 0 r co m I— I Cfm w C) Ili N h r - -a �D (1) C\I CYT 00 01 CL1 Ln ao t Co C*"? C9 01 01 CD it C6C7 r O ® CD N C) OD C) Cil CC) LC1 N h - m C\I 617* C"! v N. N r T r T T F- C) ©Q UC M 00 N U -)Q ZH W IL Q Cls ,U j 0) P- r i�V (�\y t�C1 f3 0.X} C f1 M >- 1— J -j E (D- Q Cn t� r C\1 Lt 1 c! to �t Cr7 its tX1 aro u 1 co cr r b LC1 ui U) LL LU LU 0 qT C7 N C7 C:) CD LO 0 Ci LC) r C] LCs LO r LO N C) LCs JZ LU UJ CV C7 MT d 00 CC f` CO <t M LL m m � O 1)A r . aoc Lf1 M Cs AT co 1-t S CV rl- C7 P-• It N Q F- Q w LU m CV N Ci4 m m Ch N N N N r C4 -i Z Z LL 0 0 z O m LO m N C7 0 N C 1 CL1 Cfl C3 C) m 'et 0 M C) T Q N M CO LC? T CCs CO N r LO .i N 1-t m L6 N C6 Cao LC'j t^- C6 0 CL Cis 0) 0 0 CO CC? CTs M M N I*- f+- r_ C7 C3"s 6 T N N M T 14 .® C3 N Q T 00 , co T -4 -,T r N "It w N CJ CO 1`- LCs d' r N C4 N C7 C1 Ci Ln CLT GCs llJLCL T r r r T T r r r T 0 a- CCi I Cil C�3 a Lis Co r --co 0 C? i9 lip di CT1 (i1 Cis m C)1 m Cil m 0 Cil CTs Cis m m CTs LI? CT1 m CTs co 105 Cts C tll Ca tl? C_ 0 in CC1 c 0 3 ra C) L1 C> 0 C) N m C1) C C1 tU "� L2 Cis L� E CV ZT W C C o 0 a) cn Zn L*aT O in _ w CL CL N L1 CT7 cn r "�1 T C.1 T- W r N TABLE 12 CITY OF ELK RIVER, MINNESOTA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES LAST TEN FISCAL YEARS * Includes General, Special Revenue and Debt Service Fund Expenditures 106 Ratio of Total Debt Service Fiscal Total General to General Year Principal Interest Debt Service Expenditures* Expenditures 1991 $889,389 $566,726 $1,456,115 $4,687,086 31.07 1992 946,5,54 600,014 1,546,568 5,237,584 29.53 1993 1,847,466 815,657 2,663,123 6,597,127 40.37 1994 1,285,365 737,824 2,023,189 6,314,935 32.04 1995 2,372,314 1,046,205 3,418,519 8,155,218 41.92 1996 2,141,823 885,,943 3,027,766 7,788,029 38,88 1997 1,891,360 983,485 2,874,845 8,551,129 33.62 1998 1,403,619 912,141 2,315,760 8,871,497 26.10 1999 1,611,592 930,671 2,542,263 10,854,441 23.42 2000 1,669,624 1,048,545 2,718,169 10,030,318 27.10 * Includes General, Special Revenue and Debt Service Fund Expenditures 106 TABLE 13 CITY OF ELK RIVER, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING DEBT DECEMBER 31, 2000 107 Percent of Debt City's Net Debt Applicable Share Total Debt Outstanding to City of Debt Direct Debt: City of Elk River $2,248,950 $1,718,774 100.00% $1,718,774 Overlapping Debt: Sherburne County 11,025,000 9,834,920 22.33 2,196,374 School District #728 60,610,000 56,136,751 45.37 25,468,233 Total Overlapping Debt 71,635,000 65,971,671 27,664,607 Total Direct and Overlapping Debt $73,883,950 $67,690,445 $29,383,381, 107 CITY OFELK RIVER, MINNESOTA REVEN�UE BOND COVERAGE LAST TEN FISCAL YEARS (1) Gross revenue excludes customer penalties, interest income and miscellaneous income (2) Expenses exclude depreciation, interest ombonds and miscellaneous expenses (3) Debt service includes principal and interest unenterprise revenue bonds only Note: Includes Liquor, Sewer, Water and Electric revenue bonds which are payable from revenues cfthe Municipal Liquor, Sewage Disposal, Water and Electric Enterprise Funds. (1) Net (3) Fiscal Gross (2) Revenue Debt Service Year ----- Revenue c� /4/eh|ebha ------_ Principal _�m��_�a�age` Interest Total Cove 1891 4.802.288 3.800.620 801.600 80.000 26.790 85.790 9.34 1892 4,624.247 3.892,194 732.053 60'000 22.550 82.550 &87 1993 5,290.587 4,340.712 949,855 65'000 19.250 84,250 11.27 1994 5,816.203 4'837.917 1.178'286 65'000 56.789 120.788 9.75 1895 7,862.991 5'647.185 2.215,805 110,000 182.819 292.818 7.58 1598 8,424.632 6'148.986 2.275,648 235,000 185.006 420,006 5.42 1997 9.827.607 6,232.066 3.395,541 380'000 324.942 704,942 4.82 1998 11.185.405 7.255.584 3,929,871 385.000 40,8.188 793,168 4.95 1999 12'272.861 7'798.108 4.474,753 432,500 411.869 844^489 5.30 2000 13,579.218 8'688.887 4.879,321 490�,000 395.289 885.299 5.51 (1) Gross revenue excludes customer penalties, interest income and miscellaneous income (2) Expenses exclude depreciation, interest ombonds and miscellaneous expenses (3) Debt service includes principal and interest unenterprise revenue bonds only Note: Includes Liquor, Sewer, Water and Electric revenue bonds which are payable from revenues cfthe Municipal Liquor, Sewage Disposal, Water and Electric Enterprise Funds. U) 0 (. w 0 se < Z F- 0 w z z < < z w z 0 C) U) rt LL z w Z w 0 0 LLI < < cr W CL 0 cr- CL 0 F- M N M 00 M (D C) Nr — (D (6 GLai as L6 L6 C6 (6 IZ rl.: L'o T N N M C) N r r-- lqr rl- r " C6 cli cri L6 L6 C\f P-: Lo M C) T r-- T Co rT — r -- m co Nr Nr Nr U") Ul) w rl- rl- 6s m w C) m -q 0 (0 C:) C] 0 m 0 0 w flo CD 0 " w C) r-- IQ CV --I CAS C'� CF� CCSt (q C',! Mv (0 CO M N r CD IT I-- Ll� P-�. lv� CN� Iq lr� llr� Cli .1 N r- (D U) �r TI- M LO U") r-- T IT CO Iq 0) M cq N " CN co co co rr -t U-) 61� C) C) CN 4- 't M r- C) 0 M U') LO W CD M 0 U-) T M 2 --! (q r-,":: v� r -1 Oc LQ "*! (D0 U) M N LO M 'gr LO M E 0r— Lo 'T a w— Nm CCD CD(q — —L LQ C'�! 0� — '141 E m o-, m C4 co r -q CN C6 m 0 N 'T .T U) r— 00 CD M C) el. Wi I. co M Lo r- U,) Lo M Lo ,;r M N M CD W can) E=5 w Z� z 0 0 C) C) C? 0 0 C) C) C> C) (0 'T V CD 0 U-) C> m r -- 0 a C) C� CD C) 0 0 C) o LO C) CD 0 Ca C) C), C) Q Co Cl �e N Ci 0 0 C) C) Cp Ci w w m C: 0 C> U") M C) C) T M to W r- CL! CL LQ r,-1 C'� IQ cc� (q cl! Cl� CO 0 — U") " W (0 1'- W W " r- cl M > r � N N " " M M I�t Iq 013� Wi I. co M Lo r- U,) Lo M Lo ,;r M N M CD W can) E=5 w Z� z 0 (0 'T V CD 0 U-) C> m r -- Sr M M " .Zr r " r,- C) C> U) C) C-4 0 — C> m N C7 0) 14" m U) U') M LO M m ccC i LQ IQ m rl- r r-� (Q LO CD r- Lf3 r,- r M CO CO 00 Cf) CN N r-- C) rl- 1- 14" co .M.0 2 —0 r- I,- M M LD F- I,- M C6 Ld Ld U,)- qr- r,-- -- U,)- > U� L6 r,: C4 Lj3 C6 Nr- r--- 0 w 0 m 14- " 0 U') N Itt E Wi I. co M Lo r- U,) Lo M Lo ,;r M N M CD W can) E=5 w Z� z 0 -CU - � T C,4 Ce) qj- U-) (o r- co M C) om m m m m m m m m m o MMOMMMMOMCD 109 7� 0 75 E 0 r- 0 0 uj a) o 0 0 C (D E -r- m > (D 0 L) LTJ 0 0 a) C: N U) -C 04 CO Sr M M " .Zr r " r,- C) 0) 14" m U) U') M LO M m —OMM(Dmwom" .M.0 2 —0 C6 Ld Ld U,)- qr- r,-- -- U,)- a) :3 0 w 0 m 14- " 0 U') N Itt E > m co u-) 'T ' r-- c) (o co 0) Er. a� I�i 09 ci cNi vi Gi cNi 06 0 0 CN 0 0 -CU - � T C,4 Ce) qj- U-) (o r- co M C) om m m m m m m m m m o MMOMMMMOMCD 109 7� 0 75 E 0 r- 0 0 uj a) o 0 0 C (D E -r- m > (D 0 L) LTJ 0 0 a) C: N U) -C 04 CO CITY OFELK RIVER, MINNESOTA MISCELLANEOUS STATISTICS DECEMBER 31.20OO Year cfincorporation Year ufconsolidation with Elk River Township Form ofgovernment Fiscal year begins Bond rating Population Area nfcity Miles of city streets Number ofemployees Regular Pairt-tinne/seaaona| Total Elections Number ufvotes cast inlast election Number ofregistered voters Percentage Bfregistered voters voting Building permits issued in2OD8 Number ofpermits Value cfpermits Fire services Number ofvolunteers Number ofcalls in20OD Police services Number oflicensed officers Number ofcommunity service officers Number nfreserves Number ofcalls io2OOO an TABLE 16 Continued 1880 1978 Weak Mayor -Council January A3-Moody's 18.447 44square miles 100 miles (approx.) 115 0 185 707 S72,004.000 CITY OF ELK RIVER, MINNESOTA MISCELLANEOUS STATISTICS DECEMBER 31, 2000 Parks Number of parks Acres of park Sewer utility Miles of sanitary sewer Number of lift stations Sewer rate per thousand gallons of water usage Plant capacity Water utility Storage capacity Average daily demand Pumping capacity Fiscal Year 1992 1993 1994 1995 1996 1997 1998 1999 2000 TABLE 16 Continued 29 729 approx. 49 16 $2.98 1,640,000 gal. 2,500,000 gal. 1,582,000 gal. 4,650 gal./min. Papulation 12,223 * 12,405 * 12,811 * 13,286 14,019 14,667 15,714 16,542 16,447 ** Sources - * Minnesota State Demographer, ** U.S. Census Education Source - Elk River Community Profile 111 Number of Schools Enrollment Elementary 7 5,044 Junior High 4 2,170 Senior High 1 1,885 Parochial 4 903 Total 16 10,002 Source - Elk River Community Profile 111 CITY OF ELK RIVER, MINNESOTA MISCELLANEOUS STATISTICS DECEMBER 31, 2000 2000 Unemployment Rate for Sherburne County - 3.4% Source - Minnesota Department of Economic Security Existing Home Sales 9M Number of homes sold 306 340 Average selling price $174,800 $153,000 Median selling price $157,775 $136,900 Source - Regional Multiple Listing Service of Minnesota Independent School District 728 Sherburne County Guardian Angels of Elk River Great River Energy Tescom, Corporation Target Cub Foods Menards Alltool Manufacturing Coborn's * District employees in Elk River MAJOR EMPLOYERS Education Government Nursing/Health Care/Housing Electric Utility Pressure Control Devices Retail Store Grocery Store Retail Store Metal Stamping Grocery Store Source - Elk River Community Profile am TABLE 16 Continued 624 461 345 311 292 250 200 195 171 163