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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 1983. 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 those reports. Cities under 2,500 in
<br />population are not required to report on a GAAP
<br />basia. The data for the cities under
<br />2,500 in population have been prepared, in
<br />moat cases, from statements of cash receipts and
<br />disbursements submitted by city clerks. Statutory
<br />cities 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, aubdiviaion 2, although the
<br />audited financial statements may be on the cash
<br />�.. basis.
<br />Financial operations reported in Tables 1, 3,
<br />3A, 4, 4A and 5 include the Governmental Funds for
<br />each city. The Governmental Funds are
<br />■ the General Fund, Special Revenue Funds, Capital
<br />Projects Funds, Debt Service Funds, and Special
<br />Asaeaaaent Funds; they are summarized in Table 1.
<br />Table 2 is a summary of Enterprise Fund operations.
<br />Total revenues and expenditures of
<br />Governmental Funds no longer include Enterprise
<br />▪ Fund transfers (contributions), but show those
<br />amounts as "other financing sources or uses."
<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, auditori-
<br />ums, swimming pools, refuse collection and others.
<br />In reports prior to 1981, only major enterprises
<br />common to moat cities such as water, liquor
<br />atores, hospital& and nursing homes were
<br />reported aeparately as Enterprise Funds. Sewage
<br />diapoaal and treatment was firat shown as a
<br />separate enterprise in 1980.
<br />3
<br />The presentation here conforms more closely
<br />to the governmental accounting model prescribed in
<br />Statement 1 issued in 1979 by the National Council
<br />on Government Accounting. Statement 1 provides for
<br />a clear distinction between Governmental Funds and
<br />Enterprise Funds. Because of this change in report-
<br />ing, comparison of 1981, 1982 and 1983 figures to
<br />prior years may be diatorted without careful and
<br />detailed analysis.
<br />Housing and redevelopment agencies are now
<br />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 an increase in revenues and expendi-
<br />tures of the Governmental Funds, reflecting the
<br />addition of the many HRA's.
<br />The financial operation& of the 2133
<br />municipal public service enterprises are presented
<br />in Tables 6 through 14. 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 aanitary 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 />Eleven citiea failed to submit an annual
<br />reporting fora or audited financial statement in
<br />time for this publication.
<br />Dakota
<br />Elysian
<br />Kilkenny
<br />Lakeville
<br />Landfall
<br />Laatrup
<br />Longville
<br />Manhattan Beach
<br />St. Paul Park
<br />Watson
<br />Woodstock
<br />Two of the cities failing to report,
<br />Lakeville and St. Paul Park, were over 2,500 in
<br />population.
<br />Revenues and expenditures for governmental
<br />functions are summarized by population cl
<br />based on the 1983 population of the Office of the
<br />State Desographer.The population classes correspond
<br />to the legal definitions of the lat, 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 cl as well as
<br />between municipalities of similar size.
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