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INTRODUCTION <br />SCOPE <br />This report covers the financial operations <br />of the 855 cities in Minnesota for the calendar <br />year 1985. The sources of the data are annual <br />city financial reports of audits by public <br />accountants and the State Auditor, county auditors' <br />tax abstracts and reports of indebtedness, and <br />the Department of Revenue records of state shared <br />tax distributions, grants, aids, taxable valuations <br />and tax levies. <br />Cities with populations greater than 2,500 <br />are required by Minnesota Statutes 471.695 - <br />471.699 to submit comprehensive annual financial <br />reports prepared in accordance with Generally <br />Accepted Accounting Principles (GAAP), which <br />require the modified accrual basis of accounting <br />for Governmental Funds, and the accrual basis for <br />Enterprise Funds. The data in this publication <br />for the cities over 2,500 in population were taken <br />from city reporting forms introduced in 1984 and <br />from the audited reports. Cities under 2,500 in <br />population are not required to report on a GAAP <br />basis. The data for most cities under 2,500 <br />in population have been entered from reporting <br />forms prepared on the cash basis of accounting <br />submitted by city clerks. Statutory cities <br />operating under Option Plan 'A with <br />combined offices of Clerk- Treasurer are required <br />to have an audit, pursuant to Minnesota Statutes <br />Section 412.591, subdivision 2, although the <br />audited financial statements may be on the cash <br />basis. <br />Financial operations reported in Tables 1, <br />1A, 3, 3A, 4, 4A and 5 include the Governmental <br />Funds for each city. The Governmental Funds are <br />the General Fund, Special Revenue Funds, Capital <br />Projects Funds, Debt Service Funds, and Special <br />Assessment Funds; they are summarized in Table 1. <br />Table IA is a five -year comparison of Governmental <br />Funds. Table 2 is a summary of Enterprise Fund <br />operations. <br />Contributions to Enterprise Funds for current <br />expense are shown as transfers to Enterprise <br />Funds. <br />This publication separates all reported <br />Enterprise Funds from the city Governmental Funds, <br />including enterprises such as airports, audito- <br />riums,swimming pools,refuse collection and others. <br />In reports prior to 1981, only major enterprises <br />common to most cities such as eater, liquor <br />stores, hospitals and nursing homes were <br />reported separately as Enterprise Funds. Sewage <br />disposal and treatment was first shown as a <br />separate enterprise in 1980. <br />This information has been verified with city <br />finance directors and city clerks, and any <br />reported corrections were made to the data bases. <br />Some housing and redevelopment agencies are <br />now reported in the city financial statements <br />since NCGA Statement 3, which requires <br />all funds of the cities to be included in the <br />comprehensive annual financial report (CAFR). This <br />report shows some increase in revenues and expendi- <br />tures of the Governmental Funds, reflecting the <br />addition of a number of HRA's. <br />The financial operations of the 2263 <br />municipal public service enterprises are presented <br />in Tables public <br />through 15. The enterprises furnish <br />many types of services, and operate wholly or in <br />large part with revenue derived from the sale of <br />goods or services. When possible, each enterprise <br />is presented separately on an accrual basis of <br />accounting. In some municipalities the operations <br />of two or more enterprises are combined. For <br />example, the functions of sanitary sewers, sewage <br />disposal, and the operation of the water utility <br />may be combined. This treatment is not in <br />conformity with preferred governmental accounting <br />and reporting practices, and the combined <br />enterprises are disclosed with appropriate <br />footnotes. <br />Five cities failed to submit an annual <br />reporting form or audited financial statement in <br />time for this publication. <br />Altura Mazeppa <br />Dakota Mendota <br />*Lexington <br />*Indicates city failed to report in 1984. <br />Revenues and expenditures for governmental <br />functions are summarized by population classes <br />based on the 1985 population of the Office of the <br />State Desographer.The population classes correspond <br />to the legal definitions of the 1st, 2nd, 3rd and <br />4th class cities. The 4th class cities are <br />further divided between those over and under 2,500 <br />in population, for the purpose of comparison <br />of financial data between classes as well as <br />between cities of similar size. <br />