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HomeMy WebLinkAbout2008 CAFRCft of Saint Anthony Saint Anthony, Minnesota Comprehensive Annual Financial Report LOur mission is to be a progressive and livable community, a walkable village, which is safe and secure L CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS I f Page Reference No. I. INTRODUCTORY SECTION Letter of Transmittal 3 Certificate of Achievement for Excellence in Financial Reporting 7 Organization 9 Organization Chart 10 Il. FINANCIAL SECTION Independent Auditor's Report 13 Management's Discussion and Analysis 15 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Assets Statement 1 29 Statement of Activities Statement 2 30 Fund Financial Statements: Balance Sheet - Governmental Funds Statement 3 32 Statement of Revenues, Expenditures and Changes in Fund Balance - Govemmental Funds Statement 4 34 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds Statement 5 36 Statement of Net Assets - Proprietary Funds Statement 6 37 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds Statement 7 38 Statement of Cash Flows - Proprietary Funds Statement 8 39 Notes to Financial Statements 41 Required Supplementary Information: Budgetary Comparison Schedule - General Fund Statement 9 82 Budgetary Comparison Schedule - Note to RSI 87 CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Page Reference No. Combining and Individual Nonmajor Fund Financial Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds Statement 10 94 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds Statement 11 95 Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 12 98 Subcombining Statement of Revenues, Expenditures and Changes in Exhibit 2 119 Fund Balance - Nonmajor Special Revenue Funds Statement 13 100 Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 14 104 Subcombining Statement of Revenues, Expenditures and Changes in Exhibit 4 121 Fund Balance - Nonmajor Debt Service Funds Statement 15 105 Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 16 108 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Capital Project Funds Statement 17 110 Special Revenue Funds: Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Community Center Fund Statement 18 112 Police Forfeiture Fund Statement 19 113 Recycling Fund Statement 20 114 HRA Fund Statement 21 115 Fire Education/Training Fund Statement 22 116 Supplementary Financial Information: HRA Debt Service Fund Balance Sheet Exhibit 1 118 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 2 119 HRA Projects Fund: Balance Sheet Exhibit 3 120 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 4 121 Water and Sewer Enterprise Fund: Schedule of Revenues, Expenses and Changes in Fund Net Assets Exhibit 5 122 CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Page Revenue Capacity Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 132 Direct and Overlapping Property Tax Rates Table 6 133 Principal Property Taxpayers Table 7 134 Property Tax Levies and Collections Table 8 135 Debt Capacity Ratios of Outstanding Debt by Type Table 9 136 Direct and Overlapping Governmental Activities Debt Table 10 138 Legal Debt Margin Information Table 11 139 Pledged Revenue Coverage Table 12 140 Demographic and Economic: Demographic and Economic Statistics Table 13 144 Principal Employers Table 14 145 Operating Information: Full -Time Equivalent City Government Employees by Function/Program Table 15 146 Operating Indicators by Function/Program Table 16 148 Capital Asset Statistics by Function/Program Table 17 150 Reference No. 111. STATISTICAL SECTION (Unaudited) Financial Trends: Net Assets by Component Table 1 125 Changes in Net Assets Table 2 126 Fund Balances - Governmental Funds Table 3 129 Changes in Fund Balances - Governmental Funds Table 4 130 Revenue Capacity Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 132 Direct and Overlapping Property Tax Rates Table 6 133 Principal Property Taxpayers Table 7 134 Property Tax Levies and Collections Table 8 135 Debt Capacity Ratios of Outstanding Debt by Type Table 9 136 Direct and Overlapping Governmental Activities Debt Table 10 138 Legal Debt Margin Information Table 11 139 Pledged Revenue Coverage Table 12 140 Demographic and Economic: Demographic and Economic Statistics Table 13 144 Principal Employers Table 14 145 Operating Information: Full -Time Equivalent City Government Employees by Function/Program Table 15 146 Operating Indicators by Function/Program Table 16 148 Capital Asset Statistics by Function/Program Table 17 150 - This page intentionally left blank - I. INTRODUCTORY SECTION - This page intentionally left blank - tho�n a e C,y 3301 Silver Lake Road, St. Anthony, Minnesota 55418-1699 Office: (612) 782-3301 • Fax: (612) 782-3302 • www.ci.saint-anthony.mn.us May 11, 2009 To the Honorable Mayor, Members of the City Council and Citizens of the City of St. Anthony, Minnesota: State law requires that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of audited financial statements. This report is published to fulfill that requirement for the fiscal year ended December 31, 2008. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal controls that have been established for this purpose. Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. HLB Tautges, Redpath, Ltd., Certified Public Accountants, have issued an unqualified ("clean") opinion on the City of St. Anthony's financial statements for the year ended December 31, 2008. The independent auditor's report is located at the front of the financial section of this report. Management's discussion and analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. Profile of the City The City of St. Anthony, incorporated in 1945, is located near Northeast Minneapolis and is a first ring northern suburb of the Minneapolis -St. Paul metropolitan area. The City is a completely developed community and is bordered on all sides by the communities of Minneapolis, Columbia Heights, New Brighton and Roseville. Approximately two-thirds of the City is located in northeastern Hennepin County and one-third is located in the northwest corner of Ramsey County. The City encompasses a land area of three square miles and serves a population of 8,361. The City is located 10 minutes north of downtown Minneapolis and 15 minutes northwest of downtown St. Paul. City residents and businesses have easy access to all parts of the Minneapolis -St. Paul metropolitan area by the use of Interstate 35W, Interstate 694 and Highway 280. Our Mission is to be a progressive and livable comn3unity, a walkable village, which is safe and secure. L. The City is served by Independent School District (ISD) #282 (St. Anthony), which has a 2008/2009 enrollment of approximately 1,650, operates one elementary school, a junior high and senior high in the City. In addition, a private grade school, St. Charles Borromeo, offers K-8 grade education with an enrollment of 325. The City operates as a statutory Council -Manager form of government. Policy-making and legislative authority are vested in the City Council consisting of one elected mayor and four council members. The City Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the City Manager. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, and for appointing the heads of the various departments. The Council is elected on a non- partisan basis. Council members serve four-year staggered terms, with two council members elected every two years. The Mayor is elected to serve a four-year term. The City of St. Anthony provides a full range of services including administrative services; police protection; fire suppression and prevention; construction of capital improvements, reconstruction and maintenance of city streets and other infrastructure; distribution of water; sanitary sewer collection; storm water drainage; parks and recreational activities; forestry maintenance; and recycling. The St. Anthony Firefighters' Relief Association is a separate legal entity, and accordingly is excluded from this report. The St. Anthony Housing and Redevelopment Authority (HRA), an entity legally separate from the City, is governed by a board which includes the City Council. Its sole purpose is to promote economic development within the City of St. Anthony. The HRA is a component unit of the City and its financial transactions have been included in these financial statements as a blended component unit. Additional information on both of these legally separate entities can be found in Note 1(A) & 6(D) in the notes to the financial statements. The annual budget serves as the foundation for the City of St. Anthony's financial planning and control. All departments of the City of St. Anthony submit requests for appropriations to the City Manager in June of each year. The City Manager uses these requests as the starting point for developing his recommended budget. The City Manager then presents the recommended budget to the City Council for their review prior to the certification of the proposed levy to the County Auditors by September 15th. The City Council is required to hold public hearings on the proposed budget and to adopt a final budget by December 31, the close of the City of St. Anthony's fiscal year. The appropriated budget is prepared for the General Fund by function (e.g., public safety), and department (e.g., police), and object code (e.g., salaries). Department heads may make transfers of appropriations within a department. Transfers of appropriations between departments, however, require the approval of the City Council. Budget -to - actual comparisons are provided on Statement 9 as required supplementary information to the basic financial statements for the governmental funds. 4 Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of St. Anthony operates. Local economy: The Minneapolis -St. Paul metropolitan area has continued to experience a relatively stable economy. The market place for local products and services remains strong. St. Anthony is a fully -developed City. However, continued long-term growth is anticipated as St. Anthony continues to aggressively pursue redevelopment opportunities. Because of these efforts, the City's tax capacity and tax base have consistently increased over the last five years. Long-term financial planning: The City maintains internal service funds for the replacement of various capital assets. The Capital Equipment Fund provides funding for the replacement of the City's fleet including all vehicles and heavy equipment that have a value of $5,000 or more and a useful life of at least two years. The Road Improvement Fund has been established for the replacement of the City's roads and infrastructure, including the resurfacing and reconstruction of City's streets, sidewalks and storm water system. The City combines the use of Goal Setting and Key Financial Management Planning to identify and prioritize all City improvement projects. On an on-going basis, projects are identified, discussed and prioritized by the City Council. Once the project is identified, a complete analysis is done to review the impact, examine the funding sources available to determine the appropriate funding source and budget for the costs. Cash management policies and practices: The City's foremost investment objective is to preserve capital. Secondary considerations are liquidity and lastly yield. Accordingly, deposits are either insured by federal depository insurance or collateralized. All temporary cash surpluses during the year are invested in various securities defined by Minnesota Statutes. The City's policy is to invest all available monies at competitive interest rates in accordance with the City's over-all fiscal plan and coordinate them with operating needs and programs projected over the ensuing 12 months. The average yield on the City's cash and investments in 2008 was 4.7%. Risk Management: The City has been actively working to limit its liability risk and insurance costs. To assist employees who are injured while on duty, a Managed Care Program was implemented which aids in reducing medical expenses and other costs relating to the injury. The program assists employees with a treatment plan and reduces lost workdays, replacement workers, etc. In addition, a safety committee consisting of employees from every department meets monthly throughout the year to discuss safety related items, review accident reports and provide recommendations to reduce the City's exposure to liability. The City's general liability insurance is with the League of Minnesota Cities Insurance Trust. In order to reduce the cost of insurance, a $10,000 per occurrence/$50,000 aggregate deductible is maintained and funded through insurance dividends paid by the League of Minnesota Cities. s L_ Awards: The City of St. Anthony received its second financial reporting award from the Government Finance Officers Association for the presentation of the City's 2007 financial statement. "Certificate of Excellence in Financial Reporting" Grants: Each year, the City actively participates in Federal, State and County administered grants. In 2008 the Police, Fire and Administration Departments received a variety of safety and training grants. A list of the 2008 public safety and recycling grants includes: A. Safe and Sober Grant — Alcohol Compliance Grant B. Operation NiteCap Grant — Alcohol Compliance Grant C. MN Police Reserve Officers — Taser Grant D. Department of Justice — Bulletproof Vests Grant E. Hennepin County — Fire Department Emergency Training Grant F. Ramsey County — Score/Recycling Grant Partnerships: The City partners with local businesses, civic organizations and the Chamber of Commerce to provide a variety of community safety and education programs. In 2008, the City continued to receive funding for the "Citizens Academy" which provides alcohol awareness and safety training to our residents. The City also worked with the Middle Mississippi Watershed Management Organization to secure funding for a water re -use plant which collects ground water run off into a large withholding tank that is used to irrigate Central Park. In addition, the City also received additional funding to purchase pagers for the Fire Department. Acknowledgements: The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department. We would like to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. Credit also must be given to the Mayor and the City Council for their unfailing support for maintaining the highest standard of professionalism in the management of the City of St. Anthony's finances. Respectfully submitted, Mike Mornson City Manager Roger A. Larson, Sr. Certificate of Achievement for Excellence in Financial Reporting Presented to City of St. Anthony Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2007 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. aPN^E OtFiCp ` � 9 Ji ��wnosurts �� 77 F s' to yi.roaoamirox � President Executive Director - This page intentionally left blank - CITY OF ST. ANTHONY, MINNESOTA ORGANIZATION December 31, 2008 Mayor: Jerry Faust Council Members: Hal Gray Jim Roth Randy Stille Brian Thuesen City Manager: Michael Mornson Finance Director: Roger A. Larson, Sr. 91 Term Expires December 31, 2011 December 31, 2011 December 31, 2011 December 31, 2009 December 31, 2009 Appointed O V a w II. FINANCIAL SECTION ii -This page intentionally left blank - 12 Tautges Redpath, Ltd. Certified Public Accountants and Consultants INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of St. Anthony, Minnesota We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of St. Anthony, Minnesota, as of and for the year ended December 31, 2008, which collectively comprise the City of St. Anthony, Minnesota's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of St. Anthony, Minnesota's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of St. Anthony, Minnesota, as of December 31, 2008, and the respective changes in financial position, and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated May 11, 2009 on our consideration of the City of St. Anthony, Minnesota's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. 4810 White Bear Parkway White Bear Lake, Minnesota 55110 I 651 426 7000 651 426 5004 Fax I www.hlbtr.com 13 HLB Tautges aetlparM1, ❑4. Tea member of M international, aworlE-witle organization of di firms antl Ousinees advisoes. I Equal opponunny Employer The Management's Discussion and Analysis and the budgetary comparison information on pages 15 through 25 and 82 through 87, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of St. Anthony, Minnesota's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules, supplementary financial information and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules and supplementary financial information have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. 0d 6 7'a..s J ltd . HLB TAUTGES REDPATH, LTD. White Bear Lake, Minnesota May 11, 2009 14 MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the City of St. Anthony, Minnesota, we offer readers of the City of St. Anthony, Minnesota's financial statements this narrative overview and analysis of the financial activities of the City of St. Anthony, Minnesota for the fiscal year ended December 31, 2008. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the Introductory Section of this report. Financial Highlights • The assets of the City of St. Anthony, Minnesota exceeded its liabilities at the close of the most recent fiscal year by $21,763,266 (net assets). Of this amount, $10,625,531 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net assets increased by $2,216,263 from the prior years stated net assets. • As of the close of the current fiscal year, the City of St. Anthony's governmental funds reported combined ending fund balances of $11,579,486, a decrease of $320,989 in comparison with the prior year stated fund balances. Approximately 45.6% of this total amount, $5,281,048, is available for spending at the government's discretion (unreserved/ undesignated fund balance). • At the end of the current fiscal year, unreserved fund balance for the General Fund was $1,389,299, or 28.2% of total General Fund expenditures. • The City of St. Anthony's total bonded debt decreased by $555,000 (1.7%) during the current fiscal year. The key factors in this decrease were; 1) the pay off of the 1997A G.O. Improvement Bonds totaling $350,000; 2) the pay off of the 1999A G.O Improvement Bonds totaling $250,000; 3) the issuance of $1,910,000 G.O. Improvement Bonds; and 4) the principal retirement of $1,865,000. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of St. Anthony, Minnesota's basic financial statements. The City of St. Anthony, Minnesota's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City of St. Anthony, Minnesota's finances, in a manner similar to a private -sector business. The statement of net assets presents information on all of the City of St. Anthony, Minnesota's assets and liabilities, with the difference between the two reported as net assets. Over time, L 15 Governmental Activities. Governmental activities increased the City of St. Anthony's net assets by $314,337. The key factor of the increase was that capital grants and contributions were higher than the previous year. Revenues by Source- Grantsand Governmental ccmtributionsnot AC11VItlQS restricted to specific Other Charges for programs 1 % 4% services 18% Operating Tax increments 17% grants and contributions 5% Property taxes 39% Capital grants and contributions 16% For the most part, increases in expenses closely paralleled inflation and growth in the demand for services. 20 Business -type activities. Business -type activities increased net assets by $1,901,926 from the prior year amount. The key factor of the increase was that capital contributions from Governmental Activities were reclassified and transferred to water and sewer. Revenues by Source -Business- Type Activities Miscellaneous 1% Ch ar9es for services 99% Financial Analysis of the Government's Funds As noted earlier, the City of St. Anthony uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental funds. The focus of the City of St. Anthony, Minnesota's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of St. Anthony, Minnesota's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City of St. Anthony, Minnesota's governmental funds reported combined ending fund balances of $11,579,486 a decrease of $320,989 in comparison with the prior year restated amounts. Approximately 68.5% of this total amount ($7,928,912) constitutes unreserved, fund balance, which is available for spending at the government's discretion. This includes amounts that have been designated for 1) general fund operations ($1,389,299), 2) special revenue funds ($136,375) and 3) capital project funds ($1,122,190). The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed 1) prepaid items ($51,893), 2) to pay debt service ($2,726,028), and 3) to pay for tax increment projects ($872,653). 21 The General Fund is the chief operating fund of the City of St. Anthony, Minnesota. At the end of the current fiscal year, unreserved fund balance of the General Fund was $1,389,299, while total fund balance reached $1,440,504. As a measure of the General Fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 28.2% of total General Fund expenditures and total fund balance represents 29.2% of that same amount. During the current fiscal year, the fund balance of the General Fund increased by $2,145. The City's Water Filtration and Purification Fund had a total fund balance of $5,450,852. The Street Improvement Debt Service Fund decreased by $718,187 as annual debt payment requirements exceeded assessment collections, property tax collections, bond proceeds and interest. The HRA Debt Service Fund increased by $130,862 as the annual debt service requirement exceeded the revenue collected. The Street Improvement Projects Fund increased by $385,017 as the construction costs incurred was less than the bond proceeds and other funding sources. The HRA Projects Fund decreased $40,901 to a balance of $907,400. The key factor in this decrease was the increase in payments made for developer incentives related to the Silver Lake Village Redevelopment. The Storm Water Improvement Fund increased $77,386 as a result of the funding sources for the Water Reuse Project exceeded the year-to-date construction costs. The Silver Lake Road Project Fund increased $204,951 as a result of the year-to-date construction costs are less than the funding sources for the project. Non -major Special Revenue Funds decreased $42,196 to a balance of $125,993 Non -major Debt Service Funds had a total fund balance of $272,533, all of which is reserved for the payment of debt service. The net decrease in fund balance during the current year in the nonmajor debt service funds was $28,029. Non -major Capital Project Funds had a total fund balance of $24,237, a decrease of $260,726. Proprietary funds. The City of St. Anthony, Minnesota's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net assets of the liquor operations and water and sewer fund at the end of the year amounted to $1,042,856. The total net assets for each fund were: Liquor— $1,986,795; Water and Sewer - $3,921,735. 22 General Fund Budgetary Highlights Variances from original to final budget are as follows: • The 2008 General Fund operating budget totaled $4,998,600. Variances from actual to budget can be briefly summarized as follows • Building permit revenue exceeded the budget by $21,368. • Municipal state aid — street maintenance was less than budgeted ($551). • Unbudgeted public safety grants provided $20,725 in funding for safety and alcohol compliance. • Municipal court fines exceeded budget by $15,562. • Interest earnings exceeded budget by $3,866. • Cable franchise fees exceeded budget by $19,806. • Miscellaneous revenue exceeded budget by $2,827. Capital Asset and Debt Administration Capital Assets. The City of St. Anthony, Minnesota's investment in capital assets for its governmental and business -type activities as of December 31, 2008 amounts to $39,892,342 (net of accumulated depreciation). This investment in capital assets includes land, buildings and structures, improvements, machinery and equipment, park facilities, roads and infrastructure. The total increase in the City of St. Anthony, Minnesota's investment in capital assets for the current fiscal year was 6.6%. Major capital asset events during the current fiscal year included the following: • The annual street reconstruction and infrastructure improvement project was added. City of St. Anthony, Minnesota's Capital Assets (net of depreciation) Additional information on the City of St. Anthony, Minnesota's capital assets can be found in Note 4. 23 Governmental Activities Business -Type Activities Totals 2008 2007 2008 2007 2008 2007 Land $3,378,842 $3,378,842 $5,653 $5,653 $3,384,495 $3,384,495 Buildings and structures 9,403,047 9,403,047 3,883,283 3,857,355 13,286,330 13,260,402 Furniture and fixtures 2,906,840 2,771,928 589,977 589,977 3,496,817 3,361,905 Infrastructure/streets 20,679,541 16,460,526 6,522,693 4,408,795 27,202,234 20,869,321 Stomt sewers 401,913 - - - 401,913 - Less accumulated depreciation (8,030,704) (6,988,611) (4,796,125) (4,502,973) (12,826,829) (11,491,584) Construction in progress 4,242,189 7,382,450 705,193 669,381 4,947,382 8,051,831 Total $32,981,668 $32,408,182 $6,910,674 $5,028,188 $39,892,342 $37,436,370 Additional information on the City of St. Anthony, Minnesota's capital assets can be found in Note 4. 23 Long-term debt. At the end of the current fiscal year, the City of St. Anthony, Minnesota had total debt outstanding of $35,339,722. Of this amount, $19,575,000 comprises debt backed by the full faith and credit of the government, $10,375,000 is backed by tax increments, $2,165,000 is backed by revenues sources from the City of St. Anthony, Minnesota's enterprise funds and $2,500,000 is G.O. improvement debt for which the government is liable in the event of default by the developer of Silver Lake Village. The remainder of the City of St. Anthony, Minnesota's debt represents the liability for compensated absences. General obligation bonds General obligation: Fannie Mae loan payable G.O. revenue bonds Revenue bonds Compensated absences Total City of St. Anthony, Minnesota's Outstanding Debt General Obligation and Revenue Bonds Governmental Activities Business -Type Activities Totals 2008 2007 2008 2007 2008 2007 $14,745,000 $14,755,000 $ - $ - $14,745,000 $14,755,000 2,500,000 2,500,000 - - 2,500,000 2,500,000 5,700,000 6,010,000 1,895,000 1,975,000 7,595,000 7,985,000 9,505,000 9,580,000 270,000 350,000 9,775,000 9,930,000 609,318 554,645 115,404 107,511 724,722 662,156 $33,059,318 $33,399,645 $2,280,404 $2,432,511 $35,339,722 $35,834,163 The City of St. Anthony, Minnesota's total bonded debt decreased by $555,000 during the current fiscal year. The key factors in this decrease were; 1) the pay off of the 1997A G.O. Improvement Bonds totaling $350,000; 2) the pay off of the 1999A G.O Improvement Bonds totaling $250,000; 3) the issuance of $1,910,000 G.O. Improvement Bonds, and 4) the principal retirement of $1,865,000. The City of St. Anthony, Minnesota maintains an "Al" rating from Moody's for general obligation debt. State statutes limit the amount of general obligation debt the City may issue to 3% of its total market value. The current debt limitation for the City of St. Anthony, Minnesota is $26,806,284, which is in excess of the City of St. Anthony, Minnesota's $4,755,000 outstanding general obligation debt, excluding tax increment, special assessment, and HRA bonds. Additional information on the City of St. Anthony, Minnesota's long-term debt can be found in Note 5. Economic Factors and Next Year's Budgets and Rates The unemployment rate for Hennepin County is currently 5.0%. This compares favorably to the Minneapolis/St. Paul metropolitan area's unemployment rate of 5.2%, the state's rate of 5.4% and the national average rate of 7.2%. • The increased revenues and growth in the tax base from Silver Lake Village will help the City maintain its satisfactory financial position. 24 • Maintaining acceptable service levels while being sensitive to increases in property taxes remains the most significant challenge. These factors were considered in preparing the City of St. Anthony, Minnesota's budget for the 2008 fiscal year. In 2008, there were no increases in water and sewer rates. The revenue from water and sewer operations totaled $1,615,721, which exceeded expenditures by $39,452 (2.5%). In the future, rates will be changed to comply with the Minnesota Department of Resources mandate that requires the sale of water be based on a Tiered Water Rate Structure that promotes the conservation of usage. This rate structure will charge a higher rate for excessive usage. Upon implementation, moving forward the annual increases for water, sewer and storm water charges will be in an amount similar to the rate of inflation. Requests for Information This financial report is designed to provide a general overview of the City of St. Anthony, Minnesota's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, City of St. Anthony, Minnesota, 3301 Silver Lake Road, St. Anthony, Minnesota, 55418. j 25 L - This page intentionally left blank - 26 BASIC FINANCIAL STATEMENTS 27 This page intentionally left blank - 28 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF NET ASSETS December 31, 2008 Statement 1 Liabilities: Primary Government Accounts payable Governmental Business -Type Totals 259,105 Contracts payable Activities Activities 2008 2007 Assets: - 108,952 108,952 107,402 Cash and investments $11,221,325 $495,097 $11,716,422 $12,713,093 Restricted cash and investments - 149,256 149,256 143,200 Funds held in trust 455,830 - 455,830 462,757 Accrued interest 43,877 2,315 46,192 76,293 Due from other governmental units 16,941 - 16,941 23,164 Internal balances 219,000 (219,000) - - Accounts receivable - net 3,047,578 445,201 3,492,779 2,989,714 Prepaid items 51,893 24,227 76,120 71,122 Property taxes receivable 195,404 - 195,404 97,854 Special assessments receivable 1,740,216 2,000,000 1,740,216 2,017,116 Funds held for others 160,000 - 160,000 160,000 Inventories - at cost - 659,650 659,650 631,980 Deferred charges 439,794 48,163 487,957 514,211 Unamortized bond discounts 2,978 - 2,978 3,114 Capital assets - net: Nondepreciable 7,621,031 710,846 8,331,877 11,436,326 Depreciable 25,360,637 6,199,828 31,560,465 26,000,044 Total assets 50,576,504 8,515,583 59,092,087 57,339,988 Liabilities: Accounts payable 300,793 19,839 320,632 259,105 Contracts payable 623,606 64,734 688,340 820,793 Deposits payable - 108,952 108,952 107,402 Due to other governmental units 768 67,305 68,073 70,859 Salaries payable 115,456 34,208 149,664 102,104 Accrued interest payable 588,062 31,611 619,673 573,287 Unamortized bond premium 33,765 - 33,765 27,279 Compensated absences payable: Due within one year 183,617 34,777 218,394 200,685 Due in more than one year 425,701 80,627 506,328 461,471 Bonds and notes payable: Due within one year 1,885,000 165,000 2,050,000 4,220,000 Due in more than one year 30,565,000 2,000,000 32,565,000 30,950,000 Total liabilities 34,721,768 2,607,053 37,328,821 37,792,985 Net assets: Invested in capital assets, net of related debt Restricted for: Debt service Tax increment purposes Unrestricted Total net assets 3,000,881 2,327,517 943,663 4,745,674 120,000 7,746,555 2,447,517 943,663 4,742,205 3,348,881 783,582 9,582, 675 1,042,856 10,625, 531 10, 672,335 $15,854,736 $5,908,530 $21,763,266 $19,547,003 The accompanying notes are an integral part of these financial statements. 29 W CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF ACTIVITIES For The Year Ended December 31, 2008 Functions/Programs Expenses Primary government: 5,969,076 Governmental activities: 794,433 General government $1,231,302 Public safety 2,656,975 Public works 1,436,309 Parks and recreation 416,881 Services to other cities 940,807 Housing and redevelopment 536,068 Interest on long -tern debt 1,497,107 Total governmental activities 8,715,449 Business -type activities Liquor 5,969,076 Water 794,433 Sewer 860,918 Total business -type activities 7,624,427 Total primary government $16,339,876 The accompanying notes are an integral part of these financial statements. 30 Charges For Services $294,455 152,053 177,133 217,807 1,096,200 1,937,648 6,359,731 812,371 803,350 7,975,452 $9,913,100 Statement 2 Net (Expense) Revenue and Program Revenues Changes in Net Assets Operating Capital Primary Government Grants and Grants and Governmental Business -Type Totals Contributions Contributions Activities Activities 2008 2007 $3,101 $ ($933,746) $ ($933,746) ($844,769) 257,963 773,109 (2,246,959) 17,089 (2,246,959) (1,932,769) 91,110 1,684,417 516,351 516,351 (5,240,114) - - (199,074) (199,074) (233,897) 2,216,263 - 155,393 4,006,604 155,393 127,581 - - (536,068) $15,854,736 (536,068) (132,704) 170,368 - (1,326,739) - (1,326,739) (1,146,029) 522,542 1,684,417 (4,570,842) 0 (4,570,842) (9,402,701) - - 390,655 390,655 447,016 17,938 17,938 65,783 (57,568) (57,568) 64,769 0 0 0 351,025 351,025 577,568 $522,542 51,684,417 (4,570,842) 351,025 (4,219,817) (8,825,133) General revenues: General property taxes Tax increment taxes Grants and contributions not restricted to specific programs Unrestricted investment earnings Other Transfers Total general revenues and transfers Change in net assets Net assets - January I Net assets - December 31 L_ 4,118,365 1,753,559 4,118,365 3,968,436 1,753,559 1,477,929 88,291 - 88,291 159,741 403,426 18,985 422,411 773,109 36,365 17,089 53,454 96,048 (1,514,827) 1,514,827 4,885,179 1,550,901 6,436,080 6,475,263 314,337 1,901,926 2,216,263 (2,349,870) 15,540,399 4,006,604 19,547,003 21,896,873 $15,854,736 $5,908,530 $21,763,266 $19,547,003 The accompanying notes are an integral part of these financial statements. 31 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET GOVERNMENTALFUNDS December 31. 2008 Assets Cash and investments Funds held in trust Accrued interest Due from other govemmental units Interfand receivable InterPond loan receivable Accounts receivable - net Prepaid items Property taxes receivable Special assessments receivable Funds held by others Total assets Liabilities and Fund Balance Liabilities: Interfund payable Accounts payable Contracts payable Interfund loan payable Due to other governmental units Salaries payable Deferred revenue Total liabilities Fund balance: Reserved for: Prepaid items Debt service Tax increment projects Unreserved: Designated reported in: General Fund Special Revenue Funds Capital Project Funds Undesignated reported in: Special Revenue Funds Capital Project Funds Total fund balance Total liabilities and fund balance Street Water Filtration Improvement Debt General Fund and Purification Service HRA Debt Service $1,429,490 $4,773,630 $1,380,740 $1,036,273 - - - 455,135 5,239 27,782 - 6,392 15,901 - - 44,871 - - 656,430 - - 27,034 - 51,205 555 - - 74,323 - 26,791 11,047 - - 1,740,216 - $1,648,063 $5,458,397 $3,147,747 $1,508,847 39,629 5,853 - - - 437,430 808 - - 112,980 1,692 - - 54,142 - 1,757,431 8,238 207,559 7,545 1,757,431 445,668 51,205 555 - - 1,390,316 1,063,179 1,389,299 - 5,450,297 - - 1,440,504 5,450,852 1,390,316 1,063,179 $1,648,063 $5,458,397 $3,147,747 $1,508,847 The accompanying notes are an integral part of these financial statements. 32 Statement 3 Street Improvement Projects HRA Projects Storm Water Improvement Silver Lake Road Project Fund Other Governmental Funds Intra -Activity Eliminations Total Governmental Funds 227,976 - - 623,606 - - - 623,606 545,109 - - - - - 2008 2007 $454,069 $761,534 $209,351 $391,867 $654,264 $ - $11,091,218 $11,656,656 - 695 - - - - 455,830 462,757 - - - - 4,464 - 43,877 76,293 - - - - 1,040 - 16,941 23,164 - - - - - (44,871) - - - - - - - (437,430) 219,000 255,500 2,500,000 - 520,064 - 480 - 3,047,578 2,543,531 - - - - 133 - 51,893 46,630 - 79,606 - - 3,637 - 195,404 97,854 - - - - - - 1,740,216 2,017,116 - 160,000 - - - - 160,000 160,000 $2,954,069 $1,001,835 $729,415 $391,867 $664,018 ($482,301) $17,021,957 $17,339,501 $ - $ - $ - $ - $44,871 ($44,871) $ - $ - 863 15,028 10,705 35,705 193,010 - 300,793 227,976 - - 623,606 - - - 623,606 545,109 - - - - - (437,430) - - - - - - (40) - 768 634 - - - - 784 - 115,456 77,586 2,500,000 79,407 - - 2,630 - 4,401,848 4,587,721 2,500,863 94,435 634,311 35,705 241,255 (482,301) 5,442,471 5,439,026 - - - - 133 - 51,893 46,630 - - - - 272,533 - 2,726,028 3,341,382 - 872,653 - - - - 872,653 775,185 - - - - - - 1,389,299 1,391,816 - - - - 136,375 - 136,375 274,502 453,206 - 95,104 356,162 217,718 - 1,122,190 466,600 - - - - (10,515) - 5,439,782 5,375,763 - 34,747 - (193,481) - (158,734) 228,597 453,206 907,400 95,104 356,162 422,763 0 11,579,486 11,900,475 $2,954,069 $1,001,835 $729,415 $391,867 $664,018 ($482,301) $17,021,957 $17,339,501 Fund balance reported above $11,579,486 $11,900,475 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in govemmental activities are not financial resources, and therefore, are not reported in the funds. 32,981,668 32,408,182 Other long-term assets are not available to pay for current -period expenditures and, therefore, are deferred in the funds. 4,401,848 4,587,721 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. (32,629,055) (32,947,397) Internal service funds are used by management to charge the cost of employee vacation and severance to individual funds. The assets and liabilities are included in the governmental activities on the statement of net assets (479,211) (408,582) Net assets of governmental activities $15,854,736 $15,540,399 The accompanying notes are an integral part of these financial statements. 33 L CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTALFUNDS For The Year Ended December 31. 2008 Street Water Filtration Improvement HRA Debt General Fund and Purification Debt Service Service Revenues: General property taxes $2,625,557 $ - $951,651 $387,860 Tax increment collections - - - 283,536 Licenses and permits 247,878 - - - Intergovernmental 386,591 - - - Special assessments - - 385,197 - Charges for services 1,152,872 - - - Cable franchise fees 92,606 - - - Fines and forfeits 114,062 - - - Investment income 18,666 250,252 14,250 39,039 Contributions and donations 2,450 - - - Miscellaneous 33,241 2,358 - Total revenues 4,673,923 252,610 1,351,098 710,435 Expenditures: Current: General government 754,813 117,717 - 2,155 Public safety 2,424,879 - - - Public works 584,592 66,204 - - Parks and recreation 200,000 - - - Services to other cities 940,807 - - - Nondepartmental 23,387 - - - Housing and redevelopment - - - - Capital outlay: General government - - - - Public safety - - - - Public works - - - - Debt service: Principal - - 1,570,000 430,000 Interest - - 495,645 711,264 Paying agent fees - - 3,560 5,103 Professional service - - 80 5,000 Issuance costs - - - - Constmction/acquisition costs - - - Developer incentives - - - - Total expenditures 4,928,478 183,921 2,069,285 1,153,522 Revenues over (under) expenditures (254,555) 68,689 (718,187) (443,087) Other financing sources (uses): Bonds issued - - - - Premium on debt issued - - - - Discount on debt issued - - - - Sale of capital assets - - - - Transfers in 325,000 - - 573,949 Transfers out (68,300) (100,000) - Total other financing sources (uses) 256,700 (100,000) 0 573,949 Net change in fund balance 2,145 (31,311) (718,187) 130,862 Fund balance - January 1 1,438,359 5,482,163 2,108,503 932,317 Fund balance -December 31 $1,440,504 $5,450,852 $1,390,316 $1,063,179 The accompanying notes are an integral part of these financial statements. 34 Statement 4 Street - 1,076,699 945,295 - - - - 21,555 Other 2,165,891 - - 23,394 - 5,079 Improvement 809,751 Storm Water Silver Lake Road Governmental Intra -Activity - - - - - 940,807 Projects HRA Projects Improvement Project Fund Funds Eliminations Total Governmental Funds 173,098 - - - - 23,136 - 23,136 125 - - - - 202,638 2008 2007 $ - S - $ - $ - $132,425 $ - $4,097,493 $3,957,749 - 1,399,013 - - - - 1,682,549 1,469,532 " - - - - - 247,878 213,842 - 7,487 1,410,321 - 235,193 - 2,039,592 706,080 - - - - - - 385,197 441,327 - - 2,810 - 296,243 - 1,451,925 1,403,419 ' - - - - 92,606 85,162 - - - - 25,359 - 139,421 164,788 4,303 20,455 1,009 7,749 44,315 - 400,038 689,428 - - - - 1,500 - 3,950 37,100 148,318 - - 2,532 186,449 404,611 152,621 1,426,955 1,414,140 7,749 737,567 0 10,727,098 9,573,038 5,000 76,343 - - 120,671 - 1,076,699 945,295 - - - - 21,555 - 2,446,434 2,165,891 - - 23,394 - 5,079 - 679,269 809,751 - 28,500 - - 166,173 - 394,673 428,341 - - - - - 940,807 911,419 ' - - - - - 23,387 48,735 - - - - 212,583 - 212,583 173,098 - - - - 23,136 - 23,136 125 - - - - 202,638 - 202,638 12,993 - - - - 92,894 - 92,894 316,264 - - - - 305,000 - 2,305,000 2,195,000 144,266 - - - 99,073 - 1,450,248 1,313,578 - - - - 1,938 - 10,601 11,501 ' - - - - 5,080 1,901 - - - - - - 208,545 233,917 - 1,313,360 1,674,544 197,786 - 3,419,607 5,366,376 - 323,485 - - - - 323,485 3,592,385 383,183 428,328 1,336,754 1,674,544 1,448,526 0 13,606,541 18,501,198 (230,562) 998,627 77,386 (1,666,795) (710,959) 0 (2,879,443) (8,928,160) 1,862,997 47,003 - 1,910,000 6,690,000 8,749 - - 8,749 - (231) - - - - 14,705 - 14,705 8,744 615,579 - - - 318,300 (1,207,828) 625,000 447,304 - (1,039,528) - - 1,207,828 615,579 (1,039,528) 0 1,871,746 380,008 0 2,558,454 7,145,817 385,017 (40,901) 77,386 204,951 (330,951) 0 (320,989) (1,782,343) 68,189 948,301 17,718 151,211 753,714 11,900,475 13,682,818 $453,206 $907,400 $95,104 $356,162 $422,763 $0 $11,579,486 $11,900,475 The accompanying notes are an integral part of these financial statements. 35 L, CITY OF ST. ANTHONY, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTALFUNDS For The Year Ended December 31, 2008 Amounts reported for governmental activities in the statement of activities (statement 2) are different because: Net changes in fund balances - total governmental funds (statement 4) Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins and donations) is to decrease net assets, as follows: Book value of disposals Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. This amount is the net effect of these differences in the treatment of long-term debt and related items. Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Transfer in of Enterprise Fund capital assets to governmental activities. Transfer out of governmental activities to Enterprise Fund capital assets. Internal Service Funds are used by management to charge the cost of severance expense to individual funds. This amount is the net income attributable to governmental activities. Change in net assets of governmental activities (statement 2) Statement 5 2008 2007 ($320,989) ($1,782,343) 2,737,320 4,321,970 (24,007) (11,059) (185,873) (657,420) 386,251 (4,286,224) (67,909) (118,540) 133,052 (2,139,827) (70,629) (39,585) $314,337 ($2,440,149) The accompanying notes are an integral part of these financial statements. 36 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF NET ASSETS PROPRIETARY FUNDS December 31, 2008 Assets: Current assets: Cash and cash equivalents Restricted cash and cash equivalents Receivables: Interest Accounts Prepaid items Inventories - at cost Total current assets Noncurrent assets: Deferred charges Capital assets: Land Buildings and structures Furniture, fixtures and equipment Distribution and collection system Construction in progress Total capital assets Less: Allowance for depreciation Net capital assets Total noncurrent assets Total assets Liabilities: Current liabilities: Accounts payable Due to other governmental units Contracts payable Salaries payable Accrued interest payable Refundable deposits Compensated absences payable - current portion Bonds and notes payable - current portion Interfund loan payable - current portion Total current liabilities Statement 6 Governmental Business -Type Activities Enterprise Funds Activities - 701 Water and Internal 705 Liquor Sewer Totals Service Funds 2008 2007 $59,847 $435,250 $495,097 $910,374 $130,107 149,256 - 149,256 143,200 - 2,315 - 2,315 - - 13,895 431,306 445,201 446,183 - 9,867 14,360 24,227 24,492 - 659,650 - 659,650 631,980 - 894,830 880,916 1,775,746 2,156,229 130,107 7,523 40,640 48,163 53,367 - 5,653 5,653 5,653 - 1,875,328 2,007,955 3,883,283 3,857,356 - 399,593 190,384 589,977 589,977 - - 6,522,691 6,522,691 4,408,792 - - 705,193 705,193 669,381 - 2,274,921 9,431,876 11,706,797 9,531,159 0 (580,854) (4,215,269) (4,796,123) (4,502,971) - 1,694,067 5,216,607 6,910,674 5,028,188 0 1,701,590 5,257,247 6,958,837 5,081,555 0 2,596,420 6,138,163 8,734,583 7,237,784 130,107 3,245 16,594 19,839 31,129 - 62,154 5,151 67,305 70,225 - - 64,734 64,734 275,684 - 17,124 17,084 34,208 24,518 - - 31,611 31,611 34,211 - - 108,952 108,952 107,402 - 11,482 23,295 34,777 32,584 183,617 85,000 80,000 165,000 160,000 - 36,500 - 36,500 36,500 - 215,505 347,421 562,926 772,253 183,617 Noncurrent liabilities: Compensated absences payable - noncurrent portion 26,620 54,007 80,627 74,927 425,701 Bonds and notes payable - noncurrent portion 185,000 1,815,000 2,000,000 2,165,000 - Interfund loan payable - noncurrent portion 182,500 - 182,500 219,000 - Totalnoncurrentliabilities 394,120 1,869,007 2,263,127 2,458,927 425,701 Total liabilities 609,625 2,216,428 2,826,053 3,231,180 609,318 Net assets: r Invested in capital assets, net of related debt 1,424,067 3,321,607 4,745,674 2,703,188 Restricted for debt service 120,000 - 120,000 120,000 - Unrestricted 442,728 600,128 1,042,856 1,183,416 (479,211) Total net assets $1,986,795 $3,921,735 $5,908,530 $4,006,604 ($479,211) The accompanying notes are an integral part of these financial statements. 37 l_ CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For The Year Ended December 31, 2008 Sales Cost of sales Gross profit Operating revenues: Customer billings Connection charges Total operating revenues Total gross profit and operating revenues Operating expenses: Personal services Supplies Contracted services Treatment charges (MCES) Other Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expenses): Investment income Interest expense Amortization of deferred charges Paying agent fees Miscellaneous Total nonoperating revenues (expenses) Income (loss) before transfers Capital contributions Transfers: Transfers out Change in net assets Net assets - January 1 Net assets - December 31 Amount reported for transfers out reported above Capital contributions reclassified to transfers in Net transfers of business -type activities (Statement 2) Statement 7 Governmental Business -Type Activities Enterprise Funds Activities - 701 Water Internal 705 Liquor and Sewer Totals Service Funds 2008 2007 $6,359,731 $ $6,359,731 $6,187,185 $ (4,884,558) (4,884,558) (4,711,506) 1,475,173 0 1,475,173 1,475,679 0 1,606,621 1,606,621 1,627,521 9,100 9,100 64,350 0 1,615,721 1,615,721 1,691,871 0 1,475,173 1,615,721 3,090,894 3,167,550 0 583,450 579,865 1,163,315 1,066,986 74,017 313,036 47,711 360,747 353,022 - 28,920 87,302 116,222 149,146 - - 467,267 467,267 437,604 - 39,257 185,419 224,676 226,156 - 84,447 208,705 293,152 232,691 - 1,049,110 1,576,269 2,625,379 2,465,605 74,017 426,063 39,452 465,515 701,945 (74,017) 8,372 10,613 18,985 74,764 3,388 (32,900) (76,036) (108,936) (117,085) - (2,508) (2,696) (5,204) (5,202) - - (350) (350) (350) - 1,395 15,694 17,089 16,563 - (25,641) (52,775) (78,416) (31,310) 3,388 400,422 (13,323) 2,139,827 387,099 670,635 2,139,827 - (400,000) (225,000) (625,000) (580,356) (70,629) 422 1,901,504 1,901,926 90,279 (70,629) 1,986,373 2,020,231 4,006,604 3,916,325 (408,582) $1,986,795 $3,921,735 $5,908,530 $4,006,604 ($479,211) ($625,000) ($580,356) 2,139,827 $1,514,827 ($580,356) The accompanying notes are an integral part of these financial statements. 38 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2008 Cash flows from operating activities: Receipts from customers and users Payment to suppliers Payment to employees Miscellaneous revenue Net cash flows from operating activities Cash flows from noncapital financing activities: Transfer to General Fund Transfer to Capital Project Funds Net cash flows from noncapital financing activities Cash flows from capital and related financing activities: Acquisition of capital assets Change in interfund receivable/payable Interest paid on interfund payable Principal paid on debt Interest paid on debt Net cash flows from capital and related financing activities Cash flows from investing activities: Investment income Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenue Depreciation Changes in assets and liabilities: Decrease (increase) in receivables Decrease (increase) in prepaid items Decrease (increase) in inventory Increase (decrease)in payables Total adjustments Net cash provided by operating activities Statement 8 Governmental Business -Type Activities Enterprise Funds Activities - Intemal 701 Water Service 705 Liquor and Sewer Totals Funds 2008 2007 $6,360,370 $1,616,064 $7,976,434 $7,875,939 $ - (5,299,805) (1,006,430) (6,306,235) (5,937,803) - (573,523) (572,209) (1,145,732) (1,061,591) (19,344) 1,395 15,694 17,089 16,563 - 488,437 53,119 541,556 893,108 (19,344) (200,000) (75,000) (275,000) (263,000) - (200,000) (150,000) (350,000) (317,356) - (400,000) (225,000) (625,000) (580,356) 0 - (35,811) (35,811) (687,404) - (36,500) - (36,500) (36,500) - (12,775) - (12,775) (14,600) - (80,000) (80,000) (160,000) (150,000) - (20,125) (77,236) (97,361) (101,788) - (149,400) (193,047) (342,447) (990,292) 0 6,057 10,613 16,670 76,514 3,388 (54,906) (354,315) (409,221) (601,026) (15,956) 264,009 789,565 1,053,574 1,654,600 146,063 $209,103 $435,250 $644,353 $1,053,574 $130,107 $426,063 $39,452 $465,515 $701,945 ($74,017) 1,395 15,694 17,089 16,563 84,447 208,705 293,152 232,691 639 343 982 (7,792) - (426) 691 265 (1,291) - (27,670) - (27,670) (55,887) - 3,989 (211,766) (207,777) 6,879 54,673 62,374 13,667 76,041 191,163 54,673 $488,437 $53,119 $541,556 $893,108 ($19,344) Noncash capital financing activities: Water system assets in the amount of $496,246 and sewer system assets in the amount of $1,643,581 were contributed to the Water and Sewer Fund in 2008. The accompanying notes are an integral part of these financial statements. 39 This page intentionally left blank - 40 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of St. Anthony, Minnesota (the City) operates pursuant to applicable Minnesota laws and statutes under the council-manager plan (Statutory Plan B) as defined by State statutes. The government of the City is directed by a Council composed of an elected mayor and four other elected members. The Council exercises legislative authority and determines matters of policy. The Council appoints the City Manager who is responsible for the administration of all affairs relating to the City. The financial statements of the City of St. Anthony have been prepared in conformity with generally accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies. A. FINANCIAL REPORTING ENTITY As required by generally accepted accounting principles, the financial statements of the reporting entity include those of the City (the primary government) and its component units. The component unit discussed below is included in the City's reporting entity because of the significance of their operational or financial relationships with the City. COMPONENT UNITS In conformity with generally accepted accounting principles, the financial statements of the component unit have been included in the financial reporting entity as a blended component unit. The Housing and Redevelopment Authority (HRA) is an entity legally separate from the City. However, for financial reporting purposes, the HRA is reported as if it were part of the City's operations because the members of the City Council serve as HRA board members and its activity is confined to the City. The City established the HRA under State statutes to assist and support housing and redevelopment projects undertaken within the City which are under the statutory authority of the HRA. The City reviews and approves tax levies and other financial matters related to the HRA. The City provides major financing of HRA activities and debt issued in connection with HRA projects are general obligations of the City. The activity of the HRA is reported in the HRA Debt Service Fund, the HRA Projects Fund and the HRA Special Revenue Fund. Separate financial statements are not prepared for the HRA. B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS The government -wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent, on fees and charges for support. 41 t. CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 The statement of activities demonstrates the degree to which the direct expenses of a given function or business -type activity is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or business -type activity. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or business -type activity; and, 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or business -type activity. Taxes and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers all revenues, except property taxes and reimbursement grants, to be available if they are collected within 90 days of the end of the current fiscal period. Property taxes are considered available if they are collected within 60 days of the end of the current year. Reimbursement grants are considered available if they are collected within one year of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, special assessments, intergovernmental revenues, charges for services and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government. 42 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 The government reports the following major governmental funds: The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Water Filtration and Purification Fund accounts for operation and maintenance of the City's water purification plant. The Street Improvement Debt Service Fund was established to account for debt associated with a systematic plan to reconstruct substandard residential streets and alleys. Annual debt service payments are funded through special assessments and tax levies. The HRA Debt Service Fund was established to account for debt associated with Tax Increment Financing Districts of the City. The Street Improvement Projects Fund was established to account for the construction costs for annual road reconstruction projects. The HRA Projects Fund was established to account for the construction and redevelopment costs within the City. The Storm Water Improvement Fund was established to account for the construction costs associated with the 100 -Year Flood Protection Project and related flooding issues. The Silver Lake Road Project Fund was established to account for the funding and costs of reconstruction for Silver Lake Road from 37th Avenue NE to St. Anthony Boulevard. The government reports the following major proprietary funds: The Liquor Fund is an enterprise fund that is used to account for operations of the City's off -sale liquor operation. The Water and Sewer Fund accounts for the water and sewer service charges which are used to finance the water and sewer system operating expenses. Additionally, the government reports the following fund type: Internal Service Fund - the Severance Fund accounts for the liability the City has for employee vacation and severance payments. Private -sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government -wide and proprietary -fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private - sector guidance for their business -type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private -sector guidance. 43 L. CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved external organizations, such as buying goods and services or payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the liquor, water and sewer enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for an allowable use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. D. BUDGETS Budgets are legally adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are legally adopted for the General and all Special Revenue Funds, except the Water Filtration and Purification Fund. Budgeted expenditure appropriations lapse at year end. Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed by the City because it is at present not considered necessary to assure effective budgetary control or to facilitate effective cash management. E. LEGAL COMPLIANCE - BUDGETS The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1) The City Manager submits to the City Council a proposed operating budget for the upcoming year in August. The operating budget includes proposed revenues and expenditures and the operating levy associated with operations. 2) The City Council and staff meet to review the proposed budget and Council recommends any appropriate changes. 3) Public hearings are conducted in April and December to obtain taxpayer comments and recommendations to the operating budget. 44 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 4) The budget and tax levy is legally enacted through the passage of a resolution on a department basis for the General Fund and on a fund basis for Special Revenue and Enterprise Funds that can be expended by each department based upon detailed budget estimates. 5) The City Manager and Finance Director are authorized to transfer appropriations within any department budget. Interdepartmental or interfund appropriations and deletions are authorized by the City Council with fund contingency reserves or additional revenues. 6) Formal budgetary integration is employed as a management control device during the year for the General Fund, Special Revenue, Capital Equipment and Enterprise Funds. The General Fund, Special Revenue Funds and Enterprise Funds all have Council adopted annual budgets. 7) Legal debt obligation indentures determine the appropriation level of debt service tax levies for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to determine and calculate user charges. These debt service and budget amounts represent general obligation bond indenture provisions and net income for operation and capital maintenance and are not reflected in the financial statements. 8) A capital improvement program is reviewed annually by the City Council for the Capital Project Funds. However, appropriations for major projects are not adopted until the actual bid award of the improvement. The appropriations are not reflected in the financial statements. 9) The legal level of budgetary control is at the department level for the General Fund and the fund level for the Special Revenue Funds. Monitoring of budgets is maintained at the expenditure category level (i.e., personal services; materials and supplies; contractual services; and capital outlay) within each program. All amounts over budget have been approved by the City Council through the disbursement process. 10) The City Council may authorize transfer of budgeted amounts between City funds. The City Council made supplemental budgetary appropriations throughout the year. Individual amendments were not material in relation to the original appropriations which were adjusted. The following is a listing of the Special Revenue Fund whose expenditures exceed budget appropriations: Final Over Budget Actual Budget Nonmajor Fund: Special Revenue Fund: HRA Fund $155,500 $212,583 $57,083 U, CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 F. CASH AND INVESTMENTS Cash and investment balances from all funds, except the Liquor Fund, are pooled and invested to the extent available in authorized investments. Investment income is allocated to individual funds on the basis of the fund's equity in the cash and investment pool. The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund shown as interfund receivables in the advancing fund, and an interfund payable in the fund with the deficit, until adequate resources are received. These interfund balances are eliminated on the government -wide financial statements. Investments are stated at fair value, based upon quoted market prices. Investment income is accrued at the balance sheet date. For purposes of the statement of cash flows the City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the Proprietary Funds have original maturities of 90 days or less. Therefore, the entire balance in the Proprietary Funds is considered cash equivalents. Funds held in trust represent bond proceeds related to the Public Facilities Lease Revenue bond issue which are being held by a trustee. The trustee is responsible for the investment of these funds. G. RECEIVABLES AND PAYABLES During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. Short-term interfund loans are classified as "interfund receivables/payables." All short-term interfund receivables and payables at December 31, 2008 are planned to be eliminated in 2009. Long-term interfund loans are classified as "interfund loan receivable/payable." Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances." Uncollectible property taxes and special assessments are not material and have not been reported. (See Note 1 H and J) Because utility bills are considered liens on property, no estimated uncollectible amounts are established. Uncollectible amounts are not material for other receivables and have not been reported. H. PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 7 and December 2 of the same year. Delinquent collections for November and December are received the 01 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. GOVERNMENT -WIDE FINANCIAL STATEMENTS The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible property taxes are not material and have not been reported. GOVERNMENTAL FUND FINANCIAL STATEMENTS The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and January are recognized as revenue for the current year. Taxes collected by the County by December 31 (remitted to the City the following January) and taxes and credits not received at year end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred revenue because they are not available to finance current expenditures. I. MARKET VALUE HOMESTEAD CREDIT Property taxes on residential agricultural homestead property (as defined by State Statutes) are partially reduced by market value homestead credit (MVHC). This credit is paid to the City by the State in lieu of taxes levied against homestead property. The State remits this credit through installments each year. The credit is recognized as revenue by the City at the time of collection. J. SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale. Proceeds of sales from tax forfeit properties are allocated first to the County's costs of administering all tax forfeit properties. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. 47 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 GOVERNMENT -WIDE FINANCIAL STATEMENTS The City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. GOVERNMENTAL FUND FINANCIAL STATEMENTS Revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments that are collected by the County by December 31 (remitted to the City the following January) are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funds are completely offset by deferred revenues. K. INVENTORIES GOVERNMENTALFUNDS The original cost of materials and supplies has been recorded as expenditures at the time of purchase. These funds do not maintain material amounts of inventories. PROPRIETARY FUNDS Inventories of the Proprietary Funds are stated at weighted average cost, which approximates market, using the first -in, first -out (FIFO) method. L. PREPAID ITEMS Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both govemment-wide and fund financial statements. M. CAPITAL ASSETS Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Pursuant to GASB Statement 34, in the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities), the City chose to capitalize retroactively to 1980. These assets are reported at estimated historical cost. The City estimated historical cost for the initial reporting of these assets through analysis of original bonding documents. As the City constructs or acquires additional infrastructure assets each period, they will be capitalized and reported at historical cost. M CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. For the year ended December 31, 2008, no interest was capitalized in connection with construction in progress. Property, plant and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives: Assets Buildings and structures 5 — 40 years Furniture, fixtures and equipment 3 — 20 years Distribution and collection systems 20 — 50 years Streets 20 — 50 years Storm sewers 25 years N. COMPENSATED ABSENCES It is the City's policy to permit employees to accumulate earned but unused personal leave benefits. All personal leave pay is accrued when incurred in the government -wide and proprietary fund financial statements. A liability for these amounts associated with governmental fund employees is reported in the Internal Service Severance Fund. In accordance with the provisions of Statement of Government Accounting Standards No. 16, Accounting for Compensated Absences, no liability is recorded for nonvesting accumulating rights to receive personal leave benefits. However, a liability is recognized for that portion of accumulating personal leave benefits that is vested as severance pay. O. LONG-TERM OBLIGATIONS In the government -wide financial statements and proprietary funds in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary funds statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium discount. Bond issuance costs are reported as deferred charges. In the governmental fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 49 L. CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 P. FUND EQUITY In the fund financial statements, governmental funds report reservations of fund balance for amounts not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. Q. INTERFUND TRANSACTIONS Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are reported as an interfund loan receivable or payable which offsets the movement of cash between funds. All other interfund transactions are reported as transfers. R. USE OF ESTIMATES The preparation of financial statements in accordance with generally accepted accounting principles (GAAP) requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. S. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS 1. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET AND THE GOVERNMENT -WIDE STATEMENT OF NET ASSETS The governmental fund balance sheet includes a reconciliation between fund balance — total governmental funds and net assets — governmental activities as reported in the government -wide statement of net assets. One element of that reconciliation explains that "long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds." The details of this ($32,629,055) difference is as follows: Bonds payable ($32,450,000) Accrued interest payable (588,062) Unamortized bond premium 2,978 Unamortized bond discount (33,765) Deferred charges 439,794 Net adjustment to reduce fund balance - total governmental funds to arrive at net assets - govemmental activities. ($32,629,055) 50 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 2. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES AND THE GOVERNMENT -WIDE STATEMENT OF ACTIVITIES The governmental fund statement of revenues, expenditures and changes in fund balances includes a reconciliation between net changes in fund balances — total governmental funds and changes in net assets ofgovernmental activities as reported in the government -wide statement of activities. One element of that reconciliation explains that "governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense." The details of this $2,723,228 difference is as follows: Capital outlay $318,668 Capitalized current expenditures 182,989 Construction/acquisition costs 3,419,607 Depreciation expense (1,183,944) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities. $2,737,320 Another element of that reconciliation states that "revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds." The details of this ($185,873) difference is as follows: General property taxes deferred revenue: At December 31, 2007 ($63,593) At December 31, 2008 84,465 Tax increment taxes deferred revenue: At December 31, 2007 (8,397) At December 31, 2008 79,407 Loan receivable deferred revenue: At December 31, 2007 (2,500,000) At December 31, 2008 2,500,000 Special assessments deferred revenue: At December 31, 2007 (2,015,731) At December 31, 2008 1,737,976 Net adjustments to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities. ($185,873) 51 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 Another element of that reconciliation states that "the issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of principal of the long-term debt consumes the current financial resources of governmental funds." Neither transaction, however, has any effect on net assets. The details of this $386,251 difference is as follows: Debt issued or incurred: Issuance of general obligation bonds ($1,910,000) Less premium (8,749) Principal repayments 2,305,000 Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities. $386,251 Another element of that reconciliation states that "some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds." The details of this ($67,909) difference is as follows: Amortization of issuance costs, premiums, discounts Accrued interest Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities. Note 2 DEPOSITS AND INVESTMENTS A. DEPOSITS ($18,923) (48,986) ($67,909) In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral includes the following: a) United States government treasury bills, treasury note and treasury bonds; 52 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 b) Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; c) General obligation securities of any state or local government with taxing powers which is rated "A" or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated "AA" or better by a national bond rating service; d) General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity: e) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank's public debt is rated "AA" or better by Moody's Investors Service, Inc. or Standard & Poor's Corporation; and f) Time deposits that are fully insured by any Federal agency. Custodial Credit Risk — Deposits: Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may not be returned to it. State statutes require that insurance, surety bonds or collateral protect all City deposits. The market value of collateral pledged must equal 110% of deposits not covered by insurance or bonds. As of December 31, 2008, the bank balance of the City's deposits was covered by federal depository insurance or covered by collateral pledged and held in the City's name. B. INVESTMENTS Minnesota Statutes authorize the City to invest in the following: a) Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities or organizations created by an act of congress, excluding mortgage-backed securities defined as high risk. b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above, general obligation tax-exempt securities, or repurchase or reverse repurchase agreements. c) Obligations of the State of Minnesota or any of its municipalities as follows: 1) any security which is a general obligation of any state or local government with taxing powers which is rated "A" or better by a national bond rating service; 2) any security which is a revenue obligation of any state or local government with taxing powers which is rated "AA" or better by a national bond rating service; and 3) a general obligation of the Minnesota housing finance agency which is a moral obligation of the State of Minnesota and is rated "A" or better by a national bond rating agency. d) Bankers acceptances of United States banks. e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. 53 l_. CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers; or, a bank qualified as a depositor. g) General obligation temporary bonds of the same governmental entity issued under section 429.091, subdivision 7; 469.178, subdivision 5; or 475.6 1, subdivision 6. As of December 31, 2008 the City had the following investments and maturities: Total invesunn s $11,134,821 Deposits 1,182,087 (I)These investments have call dates that occur in less than one year. Petty cash 4,600 Tom] cash and mestmerrte $12,321,508 Following is a reconciliation of the City's cash and investment balances as of December 31, 2008: Cash and investments $11,716,422 Restricted cash and investments 149,256 Funds held in trust 455,830 $12,321,508 :6J0FPh1 I*11a I B&NJ1:F6l W1 The City's investment policy is to follow Minnesota State Statutes as described above which reduces the City's exposure to credit, custodial credit and interest rate risks. Specific risk information for the City is as follows: Custodial credit risk - investments — For investments in securities, custodial credit risk is the risk that in the event of a failure of the counterparty, the City will not be able to recover the value of its investment securities that are in the possession of an outside party. As of December 31, 2008, $298,538 of the City's $11,134,821 investments was uninsured and unregistered, with securities held in the City's name. As of December 31, 2008, $7,862,651 of the City's investments were invested in money markets or external investment pools. These investments are not evidenced by securities that exist in physical or book entry form, and therefore are not subject to custodial credit risk disclosures. Interest rate risk — The City's investment policy requires the City to diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of assets in a specific maturity. The 54 Investment Maturities (in Years) Fair Less Over Investment Type Raring Value Th.1 1-5 6-10 10 Years Federal National Mortgage Assn. Notes (1) AAA $1,819,525 $ - $90,085 $502,595 $1,226,845 Federal Home Loan Mortgage Corp. Notes (1) AAA 1,005,592 - - 603,593 401,999 Federal Farm Credit Bank AAA 443,966 - 443,966 - - REMIC N/A 3,087 - - - 3,087 Moneymarket N/A 5,447,487 5,447,487 - - - External investment pcol-4M Fund N/A 2,415,164 2,415,164 - - Too] $11,134,821 $7,862,651 $534,051 $1,106,188 $1,631,931 Total invesunn s $11,134,821 Deposits 1,182,087 (I)These investments have call dates that occur in less than one year. Petty cash 4,600 Tom] cash and mestmerrte $12,321,508 Following is a reconciliation of the City's cash and investment balances as of December 31, 2008: Cash and investments $11,716,422 Restricted cash and investments 149,256 Funds held in trust 455,830 $12,321,508 :6J0FPh1 I*11a I B&NJ1:F6l W1 The City's investment policy is to follow Minnesota State Statutes as described above which reduces the City's exposure to credit, custodial credit and interest rate risks. Specific risk information for the City is as follows: Custodial credit risk - investments — For investments in securities, custodial credit risk is the risk that in the event of a failure of the counterparty, the City will not be able to recover the value of its investment securities that are in the possession of an outside party. As of December 31, 2008, $298,538 of the City's $11,134,821 investments was uninsured and unregistered, with securities held in the City's name. As of December 31, 2008, $7,862,651 of the City's investments were invested in money markets or external investment pools. These investments are not evidenced by securities that exist in physical or book entry form, and therefore are not subject to custodial credit risk disclosures. Interest rate risk — The City's investment policy requires the City to diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of assets in a specific maturity. The 54 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 policy also states the City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. Credit risk — The City's external investment pool investment is with the 4M fund which is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. The 4M fund is an unrated 2a7 -like pool and the fair value of the position in the pool is the same as the value of pool shares. Concentration of credit risk — The City places no limit on the amount the City may invest in any one issuer. More than 5% of the City's investments are in various holdings as follows: Federal Home Loan Mortgage Corp. Notes 15.13% Federal National Mortgage Assn. Notes 27.38% Note RECEIVABLES Significant receivables balances not expected to be collected within one year of December 31, 2008 are as follows: 55 Major Funds Street Water Improvement HRA Filtration & Nonmajor General Debt Service Debt Service Purification Funds Total Special assessments receivable $ - $1,521,800 $ - $ - $ - $1,521,800 Delinquent property taxes 24,850 8,929 4,491 - 498 38,768 Interfund loan receivable - - 619,930 619,930 $24,850 $1,530,729 $4,491 $619,930 $498 $2,180,498 55 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows: Delinquent property taxes receivable (General Fund) Delinquent property taxes receivable (Street Improvement Debt Service) Delinquent property taxes receivable (HRA Debt Service) Delinquent property taxes receivable (Nonmajor Funds) Delinquent TIF (HRA Projects Fund) Special assessments not yet due (Street Improvement Debt Service) Accounts receivable not yet due (Street Improvement Projects Fund) Total deferred/uneamed revenue for governmental funds 56 Unavailable Unearned $54,142 19,455 8,238 2,630 79,407 1,737,976 2,500,000 $4,401,848 $0 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 Note 4 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2008 was as follows: Primary Government Beginning Ending Balance Increases Decrease Balance Governmental activities: Capital assets, not being depreciated: Land $3,378,842 $ - $ - $3,378,842 Construction in progress 7,382,450 3,594,566 (6,734,827) 4,242,189 Total capital assets, not being depreciated 10,761,292 3,594,566 (6,734,827) 7,621,031 Capital assets, being depreciated: Buildings and improvements Furniture, fixtures and equipment Streets Storm sewers Total capital assets, being depreciated Less accumulated depreciation for: Buildings and improvements Furniture, fixtures and equipment Streets Storm sewers Total accumulated depreciation Total capital assets being depreciated - net Governmental activities capital assets - net 57 9,403,047 - 9,403,047 2,771,928 300,769 (165,857) 2,906,840 16,460,526 4,219,015 - 20,679,541 - 401,913 - 401,913 28,635,501 4,921,697 (165,857) 33,391,341 1,728,648 282,195 2,010,843 1,626,873 211,682 (141,851) 1,696,704 3,633,090 687,387 4,320,477 - 2,680 - 2,680 6,988,611 1,183,944 (141,851) 8,030,704 21,646,890 3,737,753 (24,006) 25,360,637 $32,408,182 $7,332,319 ($6,758,833) $32,981,668 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 Primary Government Business -type activities: Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings and improvements Furniture, fixtures and equipment Distribution and collection system Total capital assets, being depreciated Less accumulated depreciation for: Buildings and improvements Furniture, fixtures and equipment Distribution and collection system Total accumulated depreciation Total capital assets being depreciated - net Business -type activities capital assets - net Beginning Ending Balance Increases Decrease Balance $5,653 $ - $ $5,653 669,381 35,812 - 705,193 675,034 35,812 0 710,846 3,857,355 25,928 3,883,283 589,977 - 589,977 4,408,793 2,113,898 - 6,522,691 8,856,125 2,139,826 0 10,995,951 1,261,831 109,260 1,371,091 472,296 24,514 496,810 2,768,844 159,378 - 2,928,222 4,502,971 293,152 0 4,796,123 4,353,154 1,846,674 0 6,199,828 $5,028,188 $1,882,486 $0 $6,910,674 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities General government $121,020 Public safety 167,144 Public works, including depreciation of general infrastructure assets 873,572 Parks and recreation 22,208 Total depreciation expense - governmental activities 1,183,944 Business -type activities Liquor $84,447 Water 160,747 Sewer 47,958 Total depreciation expense - business -type activities 293,152 Total depreciation expense $1,477,096 58 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 CONSTRUCTION COMMITMENTS At December 31, 2008, the City had construction project contracts in progress. The commitments related to the remaining contract balances are summarized as follows: Contract Remaining Project Amount Commitment Water Re -Use $1,283,999 $188,044 Note 5 LONG-TERM DEBT The City issues general obligation bonds to finance its street improvement program, tax increment projects and other City purposes. General obligation bonds are direct obligations of the City and are supported by the full faith and credit of the City. The City has several types of general obligation bonds outstanding at December 31, 2008. Following is a brief description of the different bond types: • Improvement bonds are issued to finance street improvement projects. These bonds are payable primarily from special assessments levied on benefited properties. The costs of these projects are shared by the City; general property taxes levied provide the revenues for these costs. • Tax increment bonds were used to finance redevelopment projects and are payable primarily from incremental property taxes derived from the tax increment districts with any deficiency to be provided from general property taxes. • Storm sewer revenue bonds used to finance storm water improvement projects are payable primarily from service charges to residents. • State aid street bonds were utilized for a street improvement project and will be paid from future state aids received annually. • Tax abatement bonds were issued to finance a portion of the park improvement project and are payable from a special general property tax levy. • Certificates of indebtedness issued to finance various equipment acquisitions are payable from a special general property tax levy. PUBLIC FACILITIES LEASE REVENUE BONDS These bonds issued are being used to finance renovation of public works facilities and the construction of a fire station/hall. These bonds were issued by the Housing and Redevelopment Authority and are payable from annual transfers from the General Fund derived from a special general property tax levy. These bonds are deemed a direct obligation of the City, although issued by the HRA, and are supported by the full faith and credit of the City under a lease revenue indenture with the HRA. REVENUE BONDS The City has issued revenue bonds to finance business -type activities. These bonds are Liquor Revenue and Utility Revenue Bonds which are payable from operations of these two Enterprise Funds, respectively. The liability for these bonds is recorded in the Proprietary Funds. Gil CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 FANNIE MAE LOAN PAYABLE The City has entered into a non -revolving line of credit agreement with Fannie Mae. The line of credit was for a total of $3,350,000; proceeds were used to fund the acquisition of property in the Apache Plaza area related to the Silver Lake Village development. The City disbursed the funds to the developer who applied the funds towards purchase of property and other costs associated with the redevelopment project. The project is primarily for residential purposes. The loan was for a period of 36 months and was set to mature on August 27, 2007; however, the City extended the loan period to December 1, 2010. Interest on the loan is payable quarterly. The interest rate is variable based on the three month LIBOR (as published in the Wall Street Journal) plus 175 basis points. In addition, the interest rate will be reset quarterly on the first day of each calendar quarter. It is anticipated the loan will be repaid from proceeds of tax increment bonds to be issued in future years. Terms of the note agreement constitutes an unconditional general obligation of the City for which its full faith and credit and taxing power are pledged. In addition, the City pledges future tax increment to be derived from the tax increment district for payment of the note. The City has recorded a receivable from the developer for the amount of the line of credit. Interest on the line of credit is currently being paid by the City and reimbursed to the City by the developer. The City has a mortgage, assignment of leases and rents and fixture financing statement dated September 10, 2004 which obliges the developer to reimburse the City for the interest on the loan and to reimburse the City for the repayment of the loan. CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 GOVERNMENTALACTIVITIES As of December 31, 2008, the long-term debt of the financial reporting entity consisted of the following: G.O. Improvement Bonds: G.O. Improvement Bonds, Series 20018 G.O. Improvement Bonds, Series 2002A G.O. Improvement Bonds, Series 2003A G.O. Improvement Bonds, Series 2004A G.O. Improvement Bonds, Series 2005A G.O. Improvement Bonds, Series 2006A G.O. Improvement Bonds, Series 2007A Total improvement bonds G.O. Street Reconstruction Bonds: G.O. Street Reconstruction Bonds, Series 2008A G.O. Tax Increment Bonds: G.O. Taxable Tax Increment Refunding Bonds, Series 2003E Tax Increment Revenue Bonds: Tax Increment Revenue Bonds, Series 2006B Tax Increment Revenue Bonds, Series 2007 Total tax increment revenue bonds G.O. Revenue Bonds: G.O. Storm Sewer Revenue Bonds, Series 2000A G.O. Tax Abatement Bonds: G.O. Tax Abatement Bonds, Series 2001 A G.O. State Aid Bonds: G.O. State Aid Street Bonds, Series 2000B Public Facilities Lease Revenue Bonds: Public Facilities Lease Revenue Bonds, Series 2003 Total - bonded indebtedness Fannie Mae loan payable Compensated absences payable Total City indebtedness - governmental activities 61 4.85-5.50% 7/1/2000 4/1/2015 950,000 460,000 2.00-4.15% 4/1/2003 2/1/2024 5,530,000 4,755,000 34,495,000 29,950,000 Variable 8/27/2004 12/1/2010 3,350,000 2,500,000 609,318 $37,845,000 $33,059,318 Final Interest Issue Maturity Original Payable Rates Date Date Issue 12/31/08 4.00-5.00% 4/1/2001 2/1/2017 $1,160,000 $735,000 3.00-5.00% 3/1/2002 2/1/2018 1,500,000 1,055,000 1.60-4.20% 4/16/2003 2/1/2019 1,700,000 1,335,000 2.00-4.60% 6/1/2004 2/1/2020 1,790,000 1,475,000 2.70-4.15% 4/1/2005 2/1/2021 1,695,000 1,515,000 4.00% 4/1/2006 2/1/2022 3,190,000 2,940,000 3.5-4.1% 4/24/2007 2/1/2023 2,050,000 2,050,000 13,085,000 11,105,000 3.011.0% 6/5/2008 2/1/2024 1,910,000 1,910,000 3.00-5.00% 11/5/2003 2/1/2013 1,170,000 870,000 5.00-5.62% 8/1/2006 8/1/2031 4,975,000 4,865,000 4.30-5.00% 4/17/2007 2/1/2031 4,640,000 4,640,000 9,615,000 9,505,000 4.90-5.60% 7/1/2000 2/1/2015 1,610,000 945,000 4.004.80% 2/1/2001 2/1/2016 625,000 400,000 4.85-5.50% 7/1/2000 4/1/2015 950,000 460,000 2.00-4.15% 4/1/2003 2/1/2024 5,530,000 4,755,000 34,495,000 29,950,000 Variable 8/27/2004 12/1/2010 3,350,000 2,500,000 609,318 $37,845,000 $33,059,318 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 BUSINESS -TYPE ACTIVITIES Revenue Bonds: Liquor Revenue Bonds G.O. Water and Sewer Revenue Bonds, Series 2003B Total revenue bonds Compensated absences Total City indebtedness - business -type activities Total City indebtedness Interest Rates Date Final Maturity Original Payable Date Issue 12/31/08 5.50-5.75% 8/1/1997 1/1/2012 $940,000 $270,000 2.00-4.45% 4/16/2003 2/1/2024 2,200,000 1,895,000 3,140,000 2,165,000 Annual debt service requirements to maturity for long-term debt are as follows: 115,404 3,140,000 2,280,404 $40,985,000 $35,339,722 Year Ending G.O. Improvement Bonds G.O. Tax Increment Bonds G.O. Revenue Bonds December 31 Principal Interest Principal Interest Principal Interest 2009 $760,000 $430,946 $160,000 $36,235 $115,000 $47,538 2010 780,000 402,853 165,000 29,570 120,000 41,515 2011 805,000 373,045 175,000 22,168 125,000 35,175 2012 835,000 341,483 180,000 13,865 135,000 28,347 2013 870,000 308,031 190,000 4,750 140,000 20,990 2014 895,000 272,935 - - 150,000 13,085 2015 865,000 237,194 - - 160,000 4,480 2016 900,000 200,560 - - - - 2017 935,000 162,029 - - - - 2018 880,000 123,892 - - - - 2019 785,000 89,355 - - - - 2020 660,000 59,550 - - - - 2021 540,000 34,976 - - - - 2022 415,000 15,724 - - - - 2023 180,000 3,690 - - - - 2024 - - - - - - Total $11,105,000 $3,056,263 $870,000 $106,588 $945,000 $191,130 62 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 Governmental Activities Tax Increment All Other General Year Ending Revenue Bonds Lease Revenue Bonds Fannie Mae Loan Obligation Bonds December 31 Principal Interest Principal Interest Principal Interesfn Principal Interest 2009 $160,000 $490,714 $205,000 $168,073 $375,000 $ - $110,000 $122,458 2010 180,000 482,934 215,000 162,285 2,125,000 - 210,000 104,589 2011 190,000 474,421 225,000 155,685 - - 210,000 96,319 2012 205,000 465,268 235,000 148,785 - - 220,000 87,650 2013 225,000 455,080 245,000 141,462 - - 220,000 78,574 2014 245,000 443,743 255,000 133,585 - - 230,000 69,042 2015 260,000 431,549 265,000 125,000 - - 235,000 58,972 2016 280,000 418,368 280,000 115,595 - - 180,000 50,040 2017 300,000 403,790 295,000 105,459 - - 125,000 43,700 2018 330,000 387,949 310,000 94,565 - - 130,000 38,600 2019 350,000 370,568 325,000 82,814 - - 135,000 33,300 2020 385,000 351,903 340,000 70,175 - - 140,000 27,800 2021 405,000 331,684 360,000 56,430 - - 145,000 22,100 2022 440,000 310,039 380,000 41,630 - - 155,000 16,100 2023 470,000 286,157 400,000 25,730 - - 160,000 9,800 2024 500,000 260,437 420,000 8,715 - - 165,000 3,300 2025 535,000 233,125 - - - - - _ - 2026 575,000 203,938 - - - _ - 2027 615,000 172,453 - - - 2028 655,000 138,828 - - - 2029 700,000 103,079 - - - - _ - 2030 745,000 64,906 - - 2031 755,000 19,547 Total $9,505,000 $7,300,476 54,755,000 $1,635,988 $2,500,000 50 $2,770,000 $862,344 1'7nterest rate is reset quarterly on the first day of each calendar quarter (January 1, April I, July 1 and October 1) Business -Type Activities YearEnding Revenue Bonds December 31 Principal interest 2009 $165,000 $90,231 2010 175,000 82,846 2011 185,000 74,801 2012 95,000 66,122 2013 95,000 62,703 2014 100,000 59,094 2015 105,000 55,197 2016 110,000 51,031 2017 120,000 46,411 2018 125,000 41,358 2019 130,000 36,018 2020 135,000 30,386 2021 145,000 24,364 2022 150,000 17,948 2023 160,000 11,125 2024 170,000 3,782 Total $2,165,000 $753,417 It is not practicable to determine the specific year for payment of long-term accrued compensated absences. 63 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2008, was as follows: Governmental activities: Bonds payable: G.O. improvement debt G.O. street reconstruction bonds G.O. tax increment bonds G.O. revenue bonds G.O. state aid street bonds G.O. tax abatement bonds G.O. certificates of indebtedness Tax increment revenue bonds G.O. public facilities lease revenue bonds Total bonds payable - governmental activities Fannie Mae loan payable Compensated absences Total governmental activities long-term liabilities Business -type activities: Revenue bonds Compensated absences Total business -type activities long-term liabilities Beginning Ending Due Within Balance Additions Reductions Balance One Year $12,675,000 $ - ($1,570,000) $11,105,000 $760,000 - 1,910,000 - 1,910,000 - 1,025,000 - (155,000) 870,000 160,000 1,055,000 - (110,000) 945,000 115,000 530,000 - (70,000) 460,000 70,000 440,000 - (40,000) 400,000 40,000 85,000 - (85,000) - - 9,580,000 - (75,000) 9,505,000 160,000 4,955,000 (200,000) 4,755,000 205,000 30,345,000 1,910,000 (2,305,000) 29,950,000 1,510,000 2,500,000 - - 2,500,000 375,000 554,645 306,581 (251,908) 609,318 183,617 $33,399,645 $2,216,581 ($2,556,908) $33,059 318 $2,068,617 $2,325,000 $ - ($160,000) $2,165,000 $165,000 107,511 63,650 (55,757) 115,404 34,777 $2,432,511 $63,650 ($215,757) $2,280,404 $199,777 For the governmental activities, compensated absences are generally liquidated by the Internal Service Severance Fund and loans payable are generally liquidated by the Street Improvement Projects Fund. All long-term bonded indebtedness outstanding at December 31, 2008 is backed by the full faith and credit of the City, including improvement and revenue bond issues, except for the 1997 Liquor Revenue Bonds and the Tax Increment Bonds of 2006 and 2007. Delinquent assessments receivable at December 31, 2008 totaled $2,772. E, CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 PLEDGED REVENUE Future revenue pledged for the payment of long-term debt is as follows: Band las Use of Proceeds Re eoto Pledged Rerouting Pnocipnl and Interest Curren Your Type Peremtof Trust Debt Sevdce Debt service a%of Net Revenue. Term of Pledge Princgal and lnmren Paw Pledged Rrraue Rereivef WOM Srae Aid Serest Stam aid mat project of 2000 MSA allotnems 100% NfA 20002015 5545,148 596,103 595,102 2001 A Tu Abatnln, Cnrtal Pah lmprovannu T. doutemmtrevmue low. N/A 2101-2016 478,506 58.tdcg 379M 1991ARoad]ro,so nulls Road uOfiry, watehmin and aimplo: Hoots of 199] Special asse,smnts 29% N/A 1999-2013 - 359,051 12ZK PW9ARosd1tn,ro nml5 Roodimprovenntso1`1999 Special asscsmnts 25% N/A 20002015 - 255,5]6 3324 2001BRcadb,q.rds Strem,wseramlxcerof 2001 uo rovemmis Special asnsmn,s 31% N/A 2001-2017 899,803 110,433 8551 2002ARoad Mprovanays Shat improvemmisof2002 SpaiN asscssrrmts 22% N/A 2002-2118 1523,100 140,680 NAM 2003ARcadlrr,ru.ans So., improuemsts cf2003 Special asxstgents 21% N/A 2003-2019 1,64.153 145,826 38,463 2003DRosdlmprowneus Refond,,.f 1993 west unw.ncs Specialesss.. 5934 N/A 2003-2011 329,370 - 2004ARcellmpmvaness Shit imWovenmts0172104 Special as5t55mm6 23% N/A 2000-2020 1$75,688 166,975 39,659 2005A Road 6npro.cro, Sha, ods. serer improvanntso1`205 Special a..orrnts 23% N/A 2005-2021 1,932,411 14],]43 42,762 MM Road lmprovoncas S. and stem icer impmvanntsof20Dfi Special roessmmea 40% N/A 20032022 3,7T1,000 311,400 44310 2007A Road lmpmvanava Sea, and stem, xwer Special assnsmmts 29% N/A 200]-2023 2,709,109 98,595 132,196 2008ARoadbnpovhnnts Silver lake Road impmvannts Tax levy 98% WA 2008-2024 2,601U91 - - 20DOA Strom Sewer Revenue Improvemnts to stoml sewer utiliry Utilirycbsrge 100% N/A 2000-2015 1,135,130 163,220 167,623 W, L CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 Note 6 DEFINED BENEFIT PENSION PLANS - STATEWIDE A. PLAN DESCRIPTION All full-time and certain part-time employees of the City are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost-sharing, multiple -employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. 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, firefighters and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after 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. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained on the internet at www.mnpera.org, by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by calling (651)296-7460 or 1-800-652-9026. M Revenue Pledged Ca.., Ywr Pe¢entor y'.' vie- Nemaining Princyvl Pledged Use of Tmal ma%of Tetm of Principal and lntes,st Resse. Bond Issue Pmads Tyle D6ISe,"- Na,Rcvenue Pledge and lntaeat PaA Raeiew 2003ETW RQmdingof1996TQF'bond% TR' 1005A N/A 200}2013 976,586 197,070 283536 rm,edwane t ofsuper valu 2006B'rtF RedevaJoxssmofP jest T0: 100% N/A 20062031 8,79,734 344,175 1,223,783 se. #3 and TIFM 2007T Reierclopment TIF 100°/ N/A 200]-2031 8010,742 222,124 22),124 2003 Lease Reemie Aeon, mnstraetax] furnish (ease rnmue 100% N/A MW -2029 6,190,986 372,885 387,8611 Pubic nc and fire facility 1997 U,g Revenue Na liquor sees, Lignoratmrev w 100% 20'A 19972012 301,625 100,125 100,125 200313 G.O. WmedSexer Rwen. We, am awe Way Chaa,srmsa,iees 100°/a 73% 2001-2024 2,616,792 156,W6 156,036 impm.e e; Note 6 DEFINED BENEFIT PENSION PLANS - STATEWIDE A. PLAN DESCRIPTION All full-time and certain part-time employees of the City are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost-sharing, multiple -employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. 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, firefighters and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after 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. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained on the internet at www.mnpera.org, by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by calling (651)296-7460 or 1-800-652-9026. M I CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS rDecember 31, 2008 I B. FUNDING POLICY Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members were required to contribute 9.10% and 6.0%, respectively, of their annual covered salary in 2008. PEPFF members were required to contribute 8.6% of their annual covered salary in 2008. That rate will increase to 9.4% in 2009. The City is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan PERF members, 6.5% for Coordinated Plan PERF members, and 12.9% for PEPFF members. Employer contribution rates for the Coordinated Plan and PEPFF will increase to 6.75% and 14. 1% respectively, effective January 1, 2009. The City's contributions to the Public Employees Retirement Fund for the years ending December 31, 2008, 2007 and 2006 were $106,534, $96,724 and $83,480, respectively. The City's contributions to the Public Employees Police and Fire Fund for the years ending December 31, 2008, 2007 and 2006 were $272,527, $235,132 and $187,461, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. C. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA) - DEFINED CONTRIBUTION PLAN DESCRIPTION Five council members of the City are covered by the Public Employees Defined Contribution Plan (PEDCP), a multiple -employer deferred compensation plan administered by the Public Employees Retirement Association of Minnesota (PERA). The PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Benefit Provisions and Contribution Rates Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. Plan provisions are established and can be amended by State Statutes. An eligible elected official who decides to participate contributes 5 percent of salary which is matched by the elected official's employer. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2 percent of employer contributions and four -tenths of one percent of the assets in each member's account annually. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. 67 L. CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 Three year trend information (information for December 31, 2008 is not available): Three Year Trend Information REQUIRED SUPPLEMENTARY INFORMATION — SCHEDULE OF FUNDING PROGRESS Annual Percentage Net Year Pension of APC Pension Ending Cost (APC) Contributed Obligation 12/31/2007 $51,604 1000/0 $ 12/31/2006 58,275 1000/0 12/31/2005 57,856 1000/0 REQUIRED SUPPLEMENTARY INFORMATION — SCHEDULE OF FUNDING PROGRESS Note 7 INTERFUND RECEIVABLES/PAYABLES, LOANS AND TRANSFERS Pension Benefit Per Year of Service $2,300 2,000 2,000 Individual fund interfund receivable and payable balances at December 31, 2008 are as follows: Fund Receivable Payable General Fund Nonmajor Governmental Funds Total $44,871 $ 44,871 $44,871 $44,871 Interfund payables and receivables are representative of lending/borrowing arrangements to cover deficit cash balances at the end of the fiscal year. 70 Assets in Excess of Actuarial Actuarial Actuarial (Unfunded) Valuation Value of Accrued Accrued Funded Date Assets Liability Liability Ratio 12/31/2007 $1,072,177 $767,320 $304,857 139.73% 12/31/2006 977,084 659,904 317,180 148.06% 12/31/2005 820,359 632,184 188,175 129.76% Note 7 INTERFUND RECEIVABLES/PAYABLES, LOANS AND TRANSFERS Pension Benefit Per Year of Service $2,300 2,000 2,000 Individual fund interfund receivable and payable balances at December 31, 2008 are as follows: Fund Receivable Payable General Fund Nonmajor Governmental Funds Total $44,871 $ 44,871 $44,871 $44,871 Interfund payables and receivables are representative of lending/borrowing arrangements to cover deficit cash balances at the end of the fiscal year. 70 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 Interfund loans: ' Fund Receivable Payable Purpose Water Filtration & Purification $656,430 $ - HRA Debt Service - 437,430 Provide financing for escrow required by 2003 public facilities Liquor Fund 219,000 Providing financing for the Market Place Liquor Store Total $656,430 $656,430 Interfund transfers: All of the 2008 transfers are considered routine and consistent with previous practices. 71 Transfer In Governmental Activities Major Funds HRA Nonmajor General Debt Street Governmental Transfer out Fund Service Improvement Fund Total Governmental activities: General Fund $ $ - $ - $68,300 $68,300 HRA Projects 573,949 465,579 - 1,039,528 Water Filtration & Purification 50,000 - - 50,000 100,000 Business -type activities: Liquor Fund 200,000 - 200,000 400,000 Water and Sewer Fund 75,000 - 150,000 - 225,000 Total transfers $325,000 $573,949 $615,579 $318,300 $1,832,828 All of the 2008 transfers are considered routine and consistent with previous practices. 71 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 Note 8 DEFICIT FUND BALANCES/NET ASSETS The City has deficit fund balances/net assets at December 31, 2008 as follows: Fund Amount Recycling Fund ($10,498) Park Improvement (39,489) 2009 Street Improvement (153,992) Internal Service Funds (479,211) This deficit will be eliminated by charges in other funds. Note 9 CONTINGENCIES A. RISK MANAGEMENT The City is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Workers compensation coverage is provided through a pooled self-insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. The City has no deductible and a managed care program to assist employees with their rehabilitation plan. Annual employee hours of service are audited and final premiums are then determined. The amount of premium adjustment, if any, is considered immaterial and not recorded until received or paid. Property, casualty and automobile insurance coverage are provided through a pooled self-insurance program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various amounts. The City retains risk for the deductible portions. These deductibles are considered immaterial to the financial statements. The City continues to carry commercial insurance for all other risks of loss, including liquor liability, employee health and disability insurance. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. 72 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 B. LITIGATION The City attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs. C. FEDERAL AND STATE FUNDS The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements included herein or on the overall financial position of the City at December 31, 2008. D. TAX INCREMENT DISTRICTS The City's tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which would have a material effect on the financial statements. E. PAY-AS-YOU-GO TAX INCREMENT The City has one tax increment pay-as-you-go agreement. The agreement is not a general obligation of the City and is payable solely from available tax increments. Accordingly, this agreement is not reflected in the financial statements of the City. Details of the pay-as-you-go are as follows: TIF District #3-5, Landings at Silver Lake Village: ` The pay-as-you-go agreement for TIF District #3-5 provides for the payment of 90% of all tax increment received in the prior six months. The payment reimburses the developer for street, utilities, right-of-way, land acquisition, and other public improvements. Principal and interest payment will be completed February 1, 2032. F. ARBITRAGE The City issued greater than $5 million of bonds in the years 2003, 2006 and 2007 and therefore is required to rebate excess investment income relating to these issues to the federal government. The City calculates arbitrage rebate every five years as permitted by arbitrage regulations. The extent of the City's liability for arbitrage rebates for bond issues not currently requiring five year rebate calculations is not determinable at this time. However, in the opinion of management, any such liability would be immaterial. 73 L CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 Business -Type Activities Enterprise Funds: Reserved for debt service Designated for capital replacement Designated for interfund loan Total reserves and designations of enterprise fund net assets Note 12 POST EMPLOYMENT BENEFITS December 31, 2008 2007 $120,000 $120,000 - 158,752 219,000 255,000 $339,000 $533,752 The City provides the ability for retired employees to maintain insurance coverage with the City until age 65. The retired employee is responsible for 100% of the cost. Note 13 CONDUIT DEBT OBLIGATION From time to time, the City has issued Multi -family Housing Revenue Bonds to provide financial assistance to private -sector entities for the acquisition and construction of rental housing deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private -sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2008, there were six series of Multi -family Housing Revenue Bonds outstanding. The aggregate issued amount was $54,735,000, including two 1996 issues totaling $7,200,000, a 2002 issue of $7,775,000 and three 2004 issues of $39,760,000. The balance outstanding at December 31, 2008 is unavailable. Note 14 PUBLIC FACILITIES LEASE In 2003 the City, via the Housing and Redevelopment Authority (HRA), issued $5,530,000 of Public Facilities Lease Revenue Bonds. Proceeds from these bonds were utilized to finance the renovation of public works facilities and construction of a new fire station/hall. Bond proceeds were placed into an escrow account. The City received reimbursement from the trustee as costs are incurred by the City. To assist in financing the project the City transferred $157,000 from its Water and Sewer Fund in 2003. In connection with this bond issue, the City entered into a lease agreement with the HRA for the use of these facilities. Terms of the lease require the City to pay rents annually in amounts to satisfy the debt service requirements related to the bond issued by the HRA. In addition, the City advanced $437,360 to the bond trustee to initially fund the bond reserve requirements of the agreement. 76 I CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 The net book value of assets under this lease agreement at December 31, 2008 are as follows Land $1,294,541 Buildings and structures 4,887,598 Furniture, fixtures and equipment 30,903 Accumulated depreciation (741,687) Net $5,471,355 L, 0 t 0 Note 15 OPERATING LEASES The City leases space above its water towers to Sprint Spectrum. The space is used for antennas and other equipment necessary to provide radio communications. Lease terms are as follows: 2008 Annual Lease Initial 21,189 Lease Adjustment Expiration Automatic Lessee Amount Factor Date Renewals Sprint Spectrum $19,591 4% 2/27/09 4-5 year terms Future minimum lease payments are as follows 2009 $20,374 2010 21,189 2011 22,037 2012 22,918 2013 23,835 2014-2018 134,260 2019-2023 163,348 2024-2028 198,738 2029 3,590 Total $610,289 77 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 Note 16 LEGAL DEBT MARGIN The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally from property taxes. The City's legal debt margin for 2008 is computed as follows: Market value: Ramsey County Hennepin County Total market value Debt limit percentage Debt limit Amount of debt applicable to debt limit: Total bonded debt Less nonapplicable debt: Revenue bonds (liquor, water, sewer, storm sewer) State aid street bonds Tax abatement bonds Improvement bonds Tax increment bonds Cash and investments in applicable debt service funds Total amount of debt applicable to debt limit Legal debt margin 78 December 31, 2008 $310,710,500 559,112,800 869,823,300 3.00% 26,094,699 32,115,000 (3,110,000) (460,000) (400,000) (11,105,000) (10,375,000) (923,151) 5,741,849 $20,352,850 I CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 Note 17 SUBSEQUENT EVENTS The City issued the $5,175,000 General Obligation Bonds, Series 2009A on May 7, 2009 to refund the 2010 through 2015 maturities of the $1,610,000 G.O. Storm Sewer Revenue Bonds, Series 2000A, and the $950,000 G.O. State Aid Bonds, Series 2000B and to provide funding for Road and Park Improvements. Note 18 RECENTLY ISSUED ACCOUNTING STANDARDS The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were not implemented for these financial statements: Statement No. 45 Accounting and Financial Reporting by Employers for Post Employment Benefits Other Than Pension Plans. Implementation is required in three phases based on a government's total annual revenues in the first fiscal year ending after June 15, 1999. This Statement is effective for periods beginning after December 15, 2006, for phase 1 governments (those with total annual revenues of $100 million or more); after December 15, 2007, for phase 2 governments (those with total annual revenues of $10 million or more but less than $100 million); and after December 15, 2008, for phase 3 governments (those with total annual revenues of less than $10 million). Early implementation is encouraged. The City of St. Anthony will implement Statement No. 45 as of January 1, 2009. Implementing Statement No. 45 will result in recording a Net OPEB Obligation at December 31, 2009 of approximately $89,000 and disclosure of an actuarial Accrued Liability related to other post employment benefits of approximately $1,161,000. Statement No. 51 Accounting and Financial Reporting for Intangible Assets. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2009. Statement No. 53 Accounting and Financial Reporting for Derivative Instruments. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2009. Statement No. 54 Fund Balance Reporting and Governmental Fund Type Definitions. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2010. The effect these standards may have on future financial statements is not determinable at this time. - This page intentionally left blank - 80 REQUIRED SUPPLEMENTARY INFORMATION SI CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 5 For The Year Ended December 31, 2008 With Comparative Actual Amounts For The Year Ended December 31, 2007 Expenditures: 2008 2007 General government: Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues: Current: General property taxes $2,672,254 $2,672,254 $2,625,557 ($46,697) $2,512,756 Licenses and permits 207,500 207,500 247,878 40,378 213,842 Intergovernmental: Other services and charges 24,600 24,600 22,608 1,992 Federal: Total mayor and council 61,300 61,300 59,729 1,571 Police grants - - 19,650 19,650 15,502 State: Market value homestead credit 135,146 135,146 69,772 (65,374) 144,013 Police aid 155,000 155,000 153,492 (1,508) 155,873 Fire aid 52,500 52,500 40,177 (12,323) 45,604 Municipal state aid - street maintenance 30,000 30,000 29,449 (551) 30,732 PERA aid 7,200 7,200 7,197 (3) 7,197 Police grants - - 1,075 1,075 1,125 County: Street maintenance 24,900 24,900 24,659 (241) 24,944 Other - - 1,035 1,035 1,390 Local: School District DARE 14,500 14,500 14,500 - 14,500 Other 2,500 2,500 25,585 23,085 9,835 Total intergovernmental 421,746 421,746 386,591 (35,155) 450,715 Charges for services: Police contracts 1,096,200 1,096,200 1,096,200 - 1,039,000 Cable franchise fees 72,800 72,800 92,606 19,806 85,162 Antenna rental - water tower 18,000 18,000 19,591 1,591 18,837 Administrative charges 27,500 27,500 27,500 - 27,500 Other 12,800 12,800 9,581 (3,219) 11,960 Total charges for services 1,227,300 1,227,300 1,245,478 18,178 1,182,459 Fines and forfeits 98,500 98,500 114,062 15,562 129,264 Contributions and donations 1,500 1,500 2,450 950 3,270 Other revenue: Investment income 14,800 14,800 18,666 3,866 40,443 Miscellaneous - other 30,000 30,000 33,241 3,241 81,547 Total other revenue 44,800 44,800 51,907 7,107 121,990 Total revenues 4,673,600 4,673,600 4,673,923 323 4,614,296 Expenditures: General government: Mayor and council: Current: Personal services 34,700 34,700 36,489 (1,789) 31,583 Materials and supplies 2,000 2,000 632 1,368 743 Other services and charges 24,600 24,600 22,608 1,992 20,291 Total mayor and council 61,300 61,300 59,729 1,571 52,617 82 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 5 For The Year Ended December 31, 2008 With Comparative Actual Amounts For The Year Ended December 31, 2007 83 L 2008 2007 Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) General government: (continued) Intergovernmental relations: Current: Contracted services $26,400 $26,400 $24,505 $1,895 $24,070 Public relations/cable: Current: Personal services 10,900 10,900 10,936 (36) 10,658 Supplies 700 700 - 700 - Other services and charges 15,300 15,300 23,981 (8,681) 22,090 Capital outlay - - - 110 Total public relations/cable 26,900 26,900 34,917 (8,017) 32,858 General management: Current: Personal services 85,900 85,900 96,477 (10,577) 93,282 Supplies 400 400 163 237 234 Other services and charges 11,200 11,200 8,531 2,669 7,716 Total general management 97,500 97,500 105,171 (7,671) 101,232 Elections: Current: Personal services 24,200 24,200 26,979 (2,779) 15,232 Supplies 1,600 1,600 1,350 250 913 Other services and charges 6,700 6,700 4,460 2,240 5,956 Total elections 32,500 32,500 32,789 (289) 22,101 Finance: Current: Personal services 98,500 98,500 91,033 7,467 86,048 Supplies 15,500 15,500 9,622 5,878 7,672 Other services and charges 157,500 157,500 171,101 (13,601) 159,121 Total finance 271,500 271,500 271,756 (256) 252,841 Assessing: Current: Personal services 5,800 5,800 2,934 2,866 2,780 Supplies 300 300 43 257 42 Other services and charges 43,800 43,800 37,756 6,044 40,131 Total assessing 49,900 49,900 40,733 9,167 42,953 Legal: Current: Contracted services 101,200 101,200 68,975 32,225 73,841 Planning and zoning: 1_ Current: Supplies 300 300 30 270 260 Other services and charges 3,000 3,000 3,692 (692) 3,532 t Total planning and zoning 3,300 3,300 3,722 (422) 3,792 83 L CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 5 For The Year Ended December 31, 2008 With Comparative Actual Amounts For The Year Ended December 31, 2007 Public safety: 2008 2007 Civil defense: Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) Personal services 47,900 47,900 50,098 (2,198) General government: (continued) Supplies 1,300 1,300 1,042 258 General government buildings: Other services and charges 5,700 5,700 5,612 88 Current: Capital outlay - - - - Supplies $400 $400 $8 $392 $85 Other services and charges 105,900 105,900 112,508 (6,608) 91,238 Capital outlay - - - 15 Total general government buildings 106,300 106,300 112,516 (6,216) 91,338 Total general government 776,800 776,800 754,813 21,987 697,643 Public safety: Civil defense: Current: Personal services 47,900 47,900 50,098 (2,198) 46,118 Supplies 1,300 1,300 1,042 258 680 Other services and charges 5,700 5,700 5,612 88 5,876 Capital outlay - - - - 199 Total civil defense 54,900 54,900 56,752 (1,852) 52,873 Police protection: Current: Personal services 1,269,400 1,269,400 1,309,209 (39,809) 1,191,513 Supplies 70,600 70,600 74,192 (3,592) 20,470 Other services and charges 87,300 87,300 68,945 18,355 64,743 Total police protection 1,427,300 1,427,300 1,452,346 (25,046) 1,276,726 Republican National Convention: Current: Personal services - - 19,079 (19,079) - Fire protection: Current: Personal services 713,300 713,300 711,073 2,227 656,216 Supplies 25,000 25,000 16,354 8,646 6,922 Other services and charges 42,700 42,700 40,904 1,796 32,621 Capital outlay - - - - 3,430 Total fire protection 781,000 781,000 768,331 12,669 699,189 Protective inspections: Current: Personal services 15,300 15,300 9,787 5,513 8,984 Supplies 200 200 - 200 - Other services and charges 75,600 75,600 104,125 (28,525) 97,459 Total protective inspections 91,100 91,100 113,912 (22,812) 106,443 DARE program: Current: Personal services 11,500 11,500 11,083 417 12,104 Supplies 2,000 2,000 1,851 149 1,788 Other services and charges 1,000 1,000 - 1,000 312 Total DARE program 14,500 14,500 12,934 1,566 14,204 E:i CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 5 For The Year Ended December 31, 2008 With Comparative Actual Amounts For The Year Ended December 31, 2007 I Public works: 2008 2007 Street maintenance: Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) Personal services 316,900 316,900 325,032 (8,132) Public safety: (continued) Supplies 93,500 93,500 61,033 32,467 Animal control: Other services and charges 94,100 94,100 83,072 11,028 Current: Total street maintenance 504,500 504,500 469,137 35,363 Supplies $400 $400 $ - $400 $59 Contracted services 4,200 4,200 1,525 2,675 1,916 Total animal control 4,600 4,600 1,525 3,075 1,975 Total public safety 2,373,400 2,373,400 2,424,879 (51,479) 2,151,410 Public works: Street maintenance: Current: Personal services 316,900 316,900 325,032 (8,132) 307,997 Supplies 93,500 93,500 61,033 32,467 93,612 Other services and charges 94,100 94,100 83,072 11,028 79,633 Total street maintenance 504,500 504,500 469,137 35,363 481,242 Equipment maintenance: Current: Personal services 35,300 35,300 40,047 (4,747) 62,269 Supplies 26,000 26,000 32,789 (6,789) 88,011 Other services and charges 5,300 5,300 8,493 (3,193) 12,466 Total equipment maintenance 66,600 66,600 81,329 (14,729) 162,746 Tree and weed care: Current: Personal services 30,600 30,600 30,189 411 29,464 Supplies 1,200 1,200 33 1,167 310 Other services and charges 4,200 4,200 3,904 296 1,750 Total tree and weed care 36,000 36,000 34,126 1,874 31,524 Total public works 607,100 607,100 584,592 22,508 675,512 Parks and recreation: Park maintenance: Current: Personal services 145,400 145,400 118,028 27,372 119,691 Supplies 6,300 6,300 6,057 243 6,484 Other services and charges 26,500 26,500 23,739 2,761 44,992 Total park maintenance 178,200 178,200 147,824 30,376 171,167 Recreation: Current: Community services 52,200 52,200 52,176 24 52,176 Total parks and recreation 230,400 230,400 200,000 30,400 223,343 85 L CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 5 For The Year Ended December 31, 2008 With Comparative Actual Amounts For The Year Ended December 31, 2007 Expenditures: (continued) Services to other cities: Police services - contract allocation amount: Personal services Supplies Other services and charges Total services to other cities Nondepartmental: Personal services Supplies Workers compensation insurance Total nondepartmental Total expenditures Revenues over(under)expenditures $855,200 2008 $882,022 2007 Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts $855,200 $855,200 $882,022 ($26,822) $814,580 18,800 18,800 11,303 7,497 18,968 68,600 68,600 47,482 21,118 77,871 942,600 942,600 940,807 1,793 911,419 1,818 (1,818) 43,100 780 (780) 710 20,789 (20,789) 4,925 0 0 23,387 (23,387) 48,735 4,930,300 4,930,300 4,928,478 1,822 4,708,062 (256,700) (256,700) (254,555) 2,145 (93,766) Other financing sources (uses): Transfers to other funds (68,300) (68,300) (68,300) (63,100) Transfer from other funds 325,000 325,000 325,000 313,000 Total other financing sources (uses) 256,700 256,700 256,700 0 249,900 Net change in fund balance Fund balance - January 1 Fund balance - December 31 $0 $0 01 2,145 $2,145 1,438,359 $1,440,504 156,134 1,282,225 $1,438,359 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE NOTE TO RSI December 31, 2008 Note A BUDGETS The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. The legal level of budgetary control is at the department level for the General Fund. 87 - This page intentionally left blank - 88 COMBINING AND INDIVIDUAL NONMAJOR FUND STATEMENTS AND SCHEDULES S9 - This page intentionally left blank - 90 NONMAJOR GOVERNMENTAL FUNDS - This page intentionally left blank - 92 SPECIAL REVENUE FUNDS r 1 Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. DEBT SERVICE FUNDS The Debt Service Funds are used to account for the accumulation of resources for, and payment of, interest, principal and related costs on long-term debt. CAPITAL PROJECT FUNDS The Capital Project Funds account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds). n j 93 L. CITY OF ST. ANTHONY, MINNESOTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2008 With Comparative Totals For December 31, 2007 Assets Cash and investments Accrued interest Due from other governmental units Accounts receivable Prepaid items Property taxes receivable: Delinquent Due from county Total assets Liabilities and Fund Balance Liabilities: Interfund payable Accounts payable Salaries payable Due to other governmental units Deferred revenue Total liabilities Fund balance: Reserved Unreserved: Designated Undesignated Total fund balance Total liabilities and fund balance Statement 10 $10,632 $ - $34,239 Totals $ - 10,139 - 182,871 Nonmajor 22,665 Special Debt Capital Governmental Funds Revenue Service Project 2008 2007 $140,704 $272,253 $241,307 $654,264 $766,387 4,464 - - 4,464 9,181 1,040 - - 1,040 - 480 - - 480 - 133 - - 133 87 1,547 1,083 - 2,630 2,439 727 280 - 1,007 1,018 $149,095 $273,616 $241,307 $664,018 $779,112 $10,632 $ - $34,239 $44,871 $ - 10,139 - 182,871 193,010 22,665 784 - - 784 294 - - (40) (40) - 1,547 1,083 2,630 2,439 23,102 1,083 217,070 241,255 25,398 133 272,533 - 272,666 300,649 136,375 - 217,718 354,093 397,584 (10,515) - (193,481) (203,996) 55,481 125,993 272,533 24,237 422,763 753,714 $149,095 $273,616 $241,307 $664,018 $779,112 011 1 CITY OF ST. ANTHONY, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 11 CHANGES IN FUND BALANCE j NONMAJOR GOVERNMENTAL FUNDS For The Year Ended December 31, 2008 With Comparative Totals For The Year Ended December 31, 2007 Expenditures: Totals f Special Debt Capital Nonmajor Governmental Funds Revenue Service Project 2008 2007 Revenues: Public safety 21,555 - - 21,555 j General property taxes $104,956 $27,469 $ - $132,425 $172,868 Intergovernmental 3,835 133,104 98,254 235,193 248,780 Charges for services 128,620 167,623 - 296,243 300,878 Forfeited property 25,359 - - 25,359 35,524 Investment income 35,055 2,783 6,477 44,315 65,407 Contributions and donations - - 1,500 1,500 34,125 Other 1,671 - 861 2,532 1,615 Total revenues 299,496 330,979 107,092 737,567 859,197 Expenditures: Current: General government 13,551 - 107,120 120,671 65,559 Public safety 21,555 - - 21,555 18,110 Public works - - 5,079 5,079 17,703 Parks and recreation 166,173 - - 166,173 172,406 Housing and development 212,583 - - 212,583 173,098 Capital outlay: General government - - 23,136 23,136 - Public safety - - 202,638 202,638 9,364 Public works - - 92,894 92,894 316,264 Debt service: Principal - 305,000 - 305,000 295,000 Interest - 99,073 99,073 111,576 Paying agent fees - 1,938 1,938 1,290 Professional services - - - - 375 Construction/acquistion costs - - 197,786 197,786 - Total expenditures 413,862 406,011 628,653 1,448,526 1,180,745 Revenues over (under) expenditures (114,366) (75,032) (521,561) (710,959) (321,548) Other financing sources: Bonds issued - 47,003 - 47,003 - Sale of capital assets 3,870 - 10,835 14,705 8,744 Transfers in 68,300 - 250,000 318,300 725,378 i Total other financing sources 72,170 47,003 260,835 380,008 734,122 R Net change in fund balance (42,196) (28,029) (260,726) (330,951) 412,574 Fund balance - January 1 168,189 300,562 284,963 753,714 341,140 Fund balance - December 31 $125,993 $272,533 $24,237 $422,763 $753,714 95 - This page intentionally left blank - 96 NONMAJOR SPECIAL REVENUE FUNDS The City's Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The City of St. Anthony, Minnesota had the following Special Revenue Funds during the year: Community Center Fund is used to account for the operation and maintenance of City Hall and Community Services. Police Forfeiture Fund is used to account for revenue and expenditures related to the forfeiture of property. Recycling Fund is used to account for the City's recycling program. It incorporates the activities of both Hennepin and Ramsey Counties. HRA Fund was established to oversee the commercial and residential redevelopment activities in the community. Fire Education / Training Fund was established to account for revenues and expenditures related to training provided to police and fire personnel. 97 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2008 With Comparative Totals For December 31, 2007 Assets Cash and investments Accrued interest Due from other governmental units Accounts receivable Prepaid items Property taxes receivable: Delinquent Due from county Total assets Liabilities and Fund Balance Liabilities: Interfund payable Accounts payable Salaries payable Deferred revenue Total liabilities Fund balance: Reserved for: Prepaid items Unreserved: Designated for community center operations Designated for police activities Designated for recycling program Designated for HRA Designated for fire activities Undesignated Total fund balance Total liabilities and fund balance m 601 Community 230 Police Center Fund Forfeiture Fund $55,227 $70,122 1,040 116 $55,343 $71,162 2,651 330 2,981 116 52,246 52,362 381 381 70,781 70,781 $55,343 $71,162 I 225 Recycling Fund 17 $17 $10,442 73 10,515 17 (10,515) (10,498) $17 301 HRA Fund $15,355 4,464 1,547 727 $22,093 7,488 1,547 9,035 13,058 13,058 $22,093 240 Fire Education / Trainine Fund 480 $480 $190 190 290 290 $480 Statement 12 Totals Nonmaior Special Revenue Funds 2008 2007 $140,704 $175,389 4,464 9,181 1,040 - 480 - 133 87 1,547 451 727 330 $149,095 $10,632 10,139 784 1,547 23,102 133 52,246 70,781 13,058 290 (10,515) 125,993 $149,095 $185,438 16,504 294 451 17,249 7% 24,219 59,453 1,353 82,811 266 168,189 $185,438 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR SPECIAL REVENUE FUNDS For The Year Ended December 31, 2008 With Comparative Totals For The Year Ended December 31, 2007 601 Community 230 Police Center Fund Forfeiture Fund Revenues General property taxes $ $ Intergovernmental: State - market value homestead credit Local - other Charges for services: Administrative fees Rental receipts 125,000 - Forfeited property - 25,359 Investment income 929 1,535 Other Total revenues 125,929 26,894 Expenditures: Current: General government - Public safety - 19,436 Parks and recreation 166,173 - Housing and development - Capital outlay: Public safety - - Total expenditures 166,173 19,436 Revenues over(under)expenditures (40,244) 7 Other financing sources: Sale of capital assets - 3,870 Transfers in 68,300 - Total other financing sources 68,300 3,870 Net change in fund balance 28,056 11,328 Fund balance - January 1 24,306 59,453 Fund balance - December 31 $52,362 $70,781 100 Statement 13 j 225 Recycling 240 Fire Education Fund 301 HRA Fund Training Fund Totals Nonmajor Special Revenue Funds 2008 2007 $ $104,956 $ $104,956 $53,322 3,835 3,835 1,946 - - 1,051 1,700 1,920 3,620 4,705 - - 125,000 100,000 - - 25,359 35,524 32,574 17 35,055 53,583 1,465 206 1,671 215 1,700 142,830 2,143 299,496 250,346 13,551 13,551 (11,851) ' 0 l (11,851) I L 1,353 ($10,498) 212,583 212,583 (69,753) 0 (69,753) 82,811 $13,058 101 2,119 2,119 24 0 24 266 $290 13,551 21,555 166,173 212,583 413,862 (114,366) 3,870 68,300 72,170 (42,196) 168,189 $125,993 18,125 18,110 167,011 173,098 9,364 385,708 (135,362) 295,378 295,378 160,016 8,173 $168,189 This page intentionally left blank - 102 NONMAJOR DEBT SERVICE FUNDS The City's Debt Service Funds are used to account for the accumulation of resources for, and payment of, interest, principal and related costs of long -tern debt other than proprietary fund debt. The City of St. Anthony, Minnesota had the following nonmajor Debt Service Funds during the year. Storm Water Fund was established to account for the debt service associated with 100 -Year Flood Protection and infrastructure improvements. State Aid Street Fund accounts for debt service for road construction projects of high traffic roads in the Village. Funding is provided by the State of Minnesota - State Aid. Tax Abatement Fund was established to account for debt service payments associated with the Central Park Improvement project. Equipment Certificates Fund was established for major capital equipment purchases. Current debt was for the purchase of a new fire truck. Silver Lake Road Bond Fund was established to account for the debt service associated with the reconstruction and infrastructure improvements of Silver Lake Road. 103 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR DEBT SERVICE FUNDS December 31, 2008 With Comparative Totals For December 31, 2007 Statement 14 Cash and investments 402 $15,480 $47,242 $272,253 502 Tax Equipment 365 Silver $ - $ - 703 Storm 207 State Aid Abatement Certificates Lake Road Totals Nonmajor Debt Water Fund Street Fund Fund Fund Bond Fund Service Funds Assets 81 280 2008 2007 Cash and investments $119,592 $2,967 $86,972 $15,480 $47,242 $272,253 $300,026 Property taxes receivable: $ - $ - $ - $ - $ - $ - $152 Delinquent - - 585 498 - 1,083 1,988 Due from county 199 81 280 688 Total assets $119,592 $2,967 $87,756 $16,059 $47,242 $273,616 $302,702 Liabilities and Fund Balance 119,592 2,967 87,171 15,561 47,242 272,533 300,562 Liabilities: Accounts payable $ - $ - $ - $ - $ - $ - $152 Deferred revenue 585 498 1,083 1,988 Total liabilities 0 0 585 498 0 1,083 2,140 Fund balance: Reserved for debt service 119,592 2,967 87,171 15,561 47,242 272,533 300,562 Total liabilities and fund balance $119,592 $2,967 $87,756 $16,059 $47,242 $273,616 $302,702 104 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, 70,000 40,000 85,000 Statement 15 EXPENDITURES AND CHANGES IN FUND BALANCE 295,000 53,220 26,102 18,688 NONMAJOR DEBT SERVICE FUNDS - 99,073 111,576 344 For The Year Ended December 31, 2008 500 350 399 1,938 With Comparative Totals For The Year Ended December 31, 2007 - - - - - - 402 163,564 96,447 59,188 502 Tax Equipment 365 Silver 408,241 703 Storm 207 State Aid Abatement Certificates Lake Road Totals Nonmajor Debt Service Water Fund Street Fund Fund Fund Bond Fund Funds (85,870) 239 (75,032) 22,763 2008 2007 Revenues: 47,003 47,003 General property taxes $ - $ - $27,281 $188 $ - $27,469 $119,546 Intergovernmental: State: MSA state aid Local: ISD - tax abatement Charges for services Investment income Total revenues Expenditures: Debt service: Principal Interest Paying agent fees Professional service Total expenditures Revenues over (under) expenditures Other financing sources: Bonds issued Net change in fund balance Fund balance - January 1 Fund balance - December 31 96,102 - - - 96,102 99,637 - - 37,002 - - 37,002 35,038 167,623 - - - - 167,623 167,373 633 71 1,086 355 638 2,783 9,410 168,256 96,173 65,369 543 638 330,979 431,004 110,000 70,000 40,000 85,000 - 305,000 295,000 53,220 26,102 18,688 1,063 - 99,073 111,576 344 345 500 350 399 1,938 1,290 - - - - - - 375 163,564 96,447 59,188 86,413 399 406,011 408,241 4,692 (274) 6,181 (85,870) 239 (75,032) 22,763 - - 47,003 47,003 - 4,692 (274) 6,181 (85,870) 47,242 (28,029) 22,763 114,900 3,241 80,990 101,431 - 300,562 277,799 $119,592 $2,967 $87,171 $15,561 $47,242 $272,533 $300,562 I 105 l_ - This page intentionally left blank - 106 NONMAJOR CAPITAL PROJECT FUNDS The City's Capital Project Funds account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds). The City of St. Anthony, Minnesota had the following Capital Project Funds during the year: Revolving Improvement Fund was established to provide funding for smaller improvement projects. Park Improvement Fund accounts for the revenues and expenditures associated with the renovations and refurbishing of the City's park system. State Aid Street Fund accounts for the funding and costs of reconstruction for the City's designated State Aid roads. Silver Lake Village Park Fund was established to account for the operation and maintenance of the City's park located in Silver Lake Village. The Park is named "Salo Park" which is in honor of St. Anthony's sister city (Salo, Finland). Capital Equipment Fund is used by all City Departments and accounts for the annual purchases of capital equipment. Building Improvement Fund was established to provide funding for existing City owned building improvements and renovations. 2009 Street Improvement Fund accounts for the funding and construction costs associated with the reconstruction of Foss Road from Chandler Drive to the City Limits. 107 L CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS December 31, 2008 With Comparative Totals For December 31, 2007 Assets Cash and investments Total assets Liabilities and Fund Balance Liabilities: Interfund payable Accounts payable Due to other governmental units Total liabilities Fund balance (deficit): Unreserved: Designated: Designated for building maintenance Designated for capital improvements/acquistions Undesignated Total fund balance (deficit) Total liabilities and fund balance 108 509 Revolving 501 Park 205 State Aid Improvement Improvement Street $5,384 $ - $38,645 $5,384 $0 $38,645 $ - $33,664 $ - 5,825 0 39,489 0 5,384 38,645 - (39,489) - 5,384 (39,489) 38,645 $5,384 $0 $38,645 Statement 16 5112009 Street ! 350 Silver Lake 401 Capital 510 Building Improvement Village Park Equipment Fund Improvement Fund Project Fund Totals Nonmajor Capital Project Funds 2008 2007 $56,986 $138,477 $1,815 $ - $241,307 $290,972 $56,986 $138,477 $1,815 $0 $241,307 $290,972 $ -$ - $ - $575 $34,239 $ - - 23,629 153,417 182,871 6,009 - (40) - (40) - 0 23,589 0 153,992 217,070 6,009 - - 1,815 1,815 1,774 56,986 114,888 - 215,903 227,708 - - - (153,992) (193,481) 55,481 56,986 114,888 1,815 (153,992) 24,237 284,963 $56,986 $138,477 $1,815 109 $0 $241,307 $290,972 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2008 With Comparative Totals For The Year Ended December 31, 2007 Revenues: Intergovernmental: State - Municipal state aid State - other Charges for services: Service charges Investment income Contributions and donations Other Total revenues Expenditures: General government: Materials and supplies Capital outlay Public safety: Capital outlay Public works: Materials and supplies Contractual services Capital outlay Parks and recreation: Contractual services Constmction/acquistion costs Total expenditures Revenues over(under)expenditures Other financing sources (uses): Transfers in Sale of capital assets Total other financing sources (uses) Net change in fund balance Fund balance (deficit) - January 1 Fund balance (deficit) - December 31 110 509 Revolving 501 Park 205 State Aid Improvement Improvement Street 124 980 124 0 980 5,079 43,794 - 0 43,794 5,079 124 (43,794) (4,099) 0 0 0 124 (43,794) (4,099) 5,260 4,305 42,744 $5,384 ($39,489) $38,645 Statement 17 r! 250,000 5112009 Street 430,000 - 350 Silver Lake 401 Capital 510 Building Improvement 0 260,835 Village Park Equipment Fund Improvement Fund Project Fund Totals Nonmajor Capital Project Funds 41 (153,992) (260,726) 229,795 55,481 2008 2007 $ $96,654 $ $ $96,654 $111,108 $284,963 1,600 1,600 - - - 28,800 ` 11304 4,028 41 6,477 2,414 - 1,500 1,500 34,125 201 660 861 1,400 1,505 104,442 41 0 107,092 177,847 - 107,120 - 107,120 47,434 23,136 - 23,136 - 202,638 - 202,638 - - - 5,079 5,035 - - 12,668 92,894 92,894 316,264 _ 5,395 153,992 197,786 0 425,788 0 153,992 628,653 386,796 1,505 (321,346) 41 (153,992) (521,561) (208,949) r! 250,000 250,000 430,000 - 10,835 10,835 8,744 0 260,835 0 0 260,835 438,744 ' 1,505 (60,511) 41 (153,992) (260,726) 229,795 55,481 175,399 1,774 284,963 55,168 $56,986 $114,888 $1,815 ($153,992) $24,237 $284,963 r! CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 601 COMMUNITY CENTER FUND Statement 18 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2008 With Comparative Actual Amounts For The Year Ended December 31, 2007 Revenues: Charges for services: Rental receipts Investment income Miscellaneous Total revenues Expenditures: Parks and recreation: Current: Personal services Supplies Contractual services Total expenditures Revenues over(under)expenditures Other financing sources: Transfer from other funds Net change in fund balance Fund balance - January 1 Fund balance - December 31 2008 Budgeted Amounts 2007 Original Final Actual Actual $125,000 $125,000 $125,000 $100,000 1,500 1,500 929 2,092 165 126,500 126,500 125,929 102,257 13,400 13,400 12,070 11,464 - - 7 50 174,800 174,800 154,096 155,497 188,200 188,200 166,173 167,011 (61,700) (61,700) (40,244) (64,754) 68,300 68,300 68,300 63,100 $6,600 $6,600 112 28,056 (1,654) 24,306 25,960 $52,362 $24,306 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 230 POLICE FORFEITURE FUND Statement 19 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL For The Year Ended December 31, 2008 With Comparative Actual Amounts For The Year Ended December 31, 2007 Revenues: Forfeiture and confiscation Investment income Total revenues Expenditures: Public safety: Current: Personal services Supplies Other services and charges Capital outlay Total expenditures Revenues over(under)expenditures Other financing sources (uses): Sale of capital assets Net change in fund balance Fund balance - January 1 Fund balance - December 31 L 2008 - 11,831 Budgeted Amounts 10,000 2007 Original Final Actual Actual $20,000 $20,000 $25,359 $35,524 1,000 1,000 1,535 3,246 21,000 21,000 26,894 38,770 - - 11,831 - 10,000 10,000 5,389 11,232 5,000 5,000 2,216 4,014 10,000 10,000 - 9,364 25,000 25,000 19,436 24,610 (4,000) (4,000) 7,458 14,160 ($4,000) ($4,000) 113 3,870 11,328 14,160 59,453 45,293 $70,781 $59,453 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 225 RECYCLING FUND Statement 20 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2008 With Comparative Actual Amounts For The Year Ended December 31, 2007 Revenues: Intergovernmental: Hennepin County recycling grant Ramsey County score grant Charges for services Investment income Total revenues Expenditures: General government: Current: Personal services Other services and charges Total expenditures Revenues over(under)expenditures Fund balance - January 1 Fund balance (deficit) - December 31 114 18,600 18,600 18,600 18,600 $0 $0 3,290 2008 10,261 Budgeted Amounts 2007 Original Final Actual Actual 1,353 $11,500 $11,500 $ $ - 4,000 4,000 1,051 3,000 3,000 1,700 2,955 100 100 328 18,600 18,600 1,700 4,334 114 18,600 18,600 18,600 18,600 $0 $0 3,290 2,465 10,261 15,660 13,551 18,125 (11,851) (13,791) 1,353 15,144 ($10,498) $1,353 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 301 HRA FUND Statement 21 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2008 With Comparative Actual Amounts For The Year Ended December 31, 2007 Revenues: General property taxes Intergovernmental - State: Market value homestead credit Investment income Other Total revenues Expenditures: Housing and redevelopment: Current: Personal services Contractual services Total expenditures Revenues over(under)expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance (deficit) - January 1 Fund balance - December 31 L L 2008 Budgeted Amounts 2007 Original Final Actual Actual $106,714 $106,714 $104,956 $53,322 3,786 3,786 3,835 1,946 72,500 72,500 32,574 47,841 - - 1,465 - 183,000 183,000 142,830 103,109 85,500 85,500 96,817 95,752 70,000 70,000 115,766 77,346 155,500 155,500 212,583 173,098 27,500 27,500 (69,753) (69,989) - - 232,278 (27,500) (27,500) (27,500) (27,500) 0 232,278 $0 $0 (69,753) 162,289 115 82,811 (79,478) $13,058 $82,811 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 240 FIRE EDUCATION / TRAINING FUND Statement 22 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2008 With Comparative Actual Amounts For The Year Ended December 31, 2007 Revenues: Charges for services Investment income Miscellaneous Total revenues Expenditures: Public safety: Current: Personal services Materials and supplies Total expenditures Revenues over(under)expenditures Fund balance - January 1 Fund balance - December 31 2008 Budgeted Amounts 2007 Original Final Actual Actual $2,450 $2,450 $1,920 $1,750 - - 17 76 50 50 206 50 2,500 2,500 2,143 1,876 1,500 1,500 1,764 2,655 1,000 1,000 355 209 2,500 2,500 2,119 2,864 $0 $0 24 (988) 266 1,254 116 $290 $266 SUPPLEMENTARY FINANCIAL INFORMATION 1u CITY OF ST. ANTHONY, MINNESOTA BALANCESHEET HRA DEBT SERVICE FUND December 31, 2008 With Comparative Totals For December 31, 2007 Assets Cash and investments Funds held in trust Accrued interest receivable Property taxes receivable: Delinquent Due from county Total assets Liabilities and Fund Balance Liabilities: Interfund loan payable Deferred revenue Total liabilities Fund balance (deficit): Reserved for debt service Total liabilities and fund balance Exhibit 1 G.O. Tax Increment Bonds Public 1996A Facilities TIF TIF Totals Apache Revenue Revenue Revenue HRA Debt Service Fund (Cub Foods) Bonds Bonds2006 Bonds2007 2008 2007 $615,509 $420,774 - 455,135 6,392 8,238 2,809 $ ($10) $1,036,273 $898,926 455,135 462,307 6,392 6,253 8,238 6,551 2,809 2,261 $615,509 $893,348 $0 ($10) $1,508,847 $1,376,298 $ - $437,430 $ - $ - $437,430 $437,430 - 8,238 - 8,238 6,551 0 445,668 0 0 445,668 443,981 615,509 447,680 - (10) 1,063,179 932,317 $615,509 $893,348 $0 ($10) $1,508,847 $1,376,298 118 a M H L_ CITY OF ST. ANTHONY, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES Exhibit 2 IN FUND BALANCE HRA DEBT SERVICE FUND For The Year Ended December 31, 2008 With Comparative Totals For The Year Ended December 31, 2007 Revenues: General property taxes Tax increment collections Investment income Total revenues Expenditures: General government: Other Debt service: Principal Interest and other Paying agent fees Professional service Total expenditures Revenues over (under) expenditures Other financing sources (uses): Transfers in Net change in fund balance Fund balance - January 1 Fund balance - December 31 G.O. Tax - - - Increment 2,032 155,000 200,000 Bonds Public 430,000 340,000 1996A Facilities TIF TIF Totals 227,134 Apache Revenue Revenue Revenue HRA Debt Service Fund (Cub Foods) Bonds Bonds 2006 Bonds 2007 2008 2007 $ - $387,860 $ - $ - $387,860 $392,078 283,536 - - - 283,536 276,513 9,770 29,269 - 39,039 37,072 293,306 417,129 0 0 710,435 705,663 2,155 - - - 2,155 2,032 155,000 200,000 75,000 - 430,000 340,000 42,070 172,885 269,175 227,134 711,264 223,965 350 2,103 2,000 650 5,103 2,450 - 5,000 - - 5,000 125 199,575 379,988 346,175 227,784 1,153,522 568,572 93,731 37,141 (346,175) (227,784) (443,087) 137,091 346,175 227,774 573,949 - 93,731 37,141 0 (10) 130,862 137,091 521,778 410,539 - - 932,317 795,226 $615,509 $447,680 $0 ($10) $1,063,179 $932,317 119 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET HRA PROJECTS FUND December 31, 2008 With Comparative Totals For December 31, 2007 Exhibit 3 Tax Increment Financing Districts HRA Totals Chandler Apache Directed HRA Projects Fund Place (Wal-Mart) Projects 2008 2007 Assets Cash and investments ($3,899) Funds held in trust - Property taxes receivable: Delinquent - Due from county - Accounts and other receivables - Due from other governments - Funds held by others - $886,787 ($121,354) $761,534 $805,574 695 695 450 79,407 199 79,407 8,397 199 1,241 - 14,766 - - 6,585 160,000 160,000 160,000 Total assets ($3,899) $967,088 $38,646 $1,001,835 $997,013 Liabilities and Fund Balance Liabilities: Accounts payable $ $15,028 $ $15,028 $40,315 Deferred revenue 79,407 79,407 8,397 Total liabilities 0 94,435 0 94,435 48,712 Fund balance (deficit) Reserved for tax increment projects 872,653 - 872,653 775,185 Unreserved: Undesignated (3,899) - 38,646 34,747 173,116 Total fund balance (deficit) (3,899) 872,653 38,646 907,400 948,301 Total liabilities and fund balance ($3,899) $967,088 $38,646 $1,001,835 $997,013 i�z�� M n CITY OF ST. ANTHONY, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES Exhibit 4 IN FUND BALANCE HRA PROJECTS FUND For The Year Ended December 31, 2008 With Comparative Totals For The Year Ended December 31, 2007 Expenditures: Tax Increment Financing Districts HRA Intra- Totals General government: Chandler Apache Directed Activity HRA Projects Fund Place (Wal-Mart) Projects Eliminations 2008 2007 Revenues: 76,343 53,874 Public works: Tax increment collections $175,230 $1,223,783 $ - $ - $1,399,013 $1,193,019 Intergovernmental - MVHC - 7,487 - - 7,487 6,585 Investment income 7,763 12,692 - - 20,455 46,050 Other revenues: Developer fees and reimbursements - - - - - 151,491 Other - - - - - 5,069 Total revenues 182,993 1,243,962 0 0 1,426,955 1,402,214 Expenditures: General government: Other 1,745 26,786 47,812 76,343 53,874 Public works: Contractual services - - - - 36,807 Parks and recreation: Contractual services - - 28,500 28,500 32,592 Developer incentives - 323,485 - 323,485 3,592,385 Debt service: Principal - - - - - 885,000 Interest - - - - - 337,416 Paying agent fees - - - - - 2,650 Issuance costs - - - - - 208,545 Total expenditures 1,745 350,271 76,312 0 428,328 5,149,269 Revenues over(under)expenditures 181,248 893,691 (76,312) 0 998,627 (3,747,055) Other financing sources (uses): Bonds issued - - - 4,640,000 Discount on bonds issued - (231) Transfers in 58,158 (58,158) - Transfers out (465,579) (573,949) (58,158) 58,158 (1,039,528) (3,230,861) Total other financing sources (uses) (465,579) (515,791) (58,158) 0 (1,039,528) 1,408,908 Net change in fund balance (284,331) 377,900 (134,470) 0 (40,901) (2,338,147) Fund balance - January 1 280,432 494,753 173,116 - 948,301 3,286,448 Fund balance (deficit) - December 31 ($3,899) $872,653 $38,646 $0 $907,400 $948,301 121 CITY OF ST. ANTHONY, MINNESOTA SCHEDULE OF REVENUES, EXPENSES AND CHANGES Exhibit 5 FUND NET ASSETS WATER AND SEWER ENTERPRISE FUND For The Year Ended December 31, 2008 With Comparative Totals For The Year Ended December 31, 2007 Operating revenues: Charges for services Connection charges Total operating revenues Operating expenses: Personal services Supplies Contracted services and other Treatment charges (MCES) Other Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expenses): Investment income Miscellaneous income Interest expense Amortization of bond discount Paying agent fees Total nonoperating revenues (expenses) Net operating income (loss) Capital contributions Transfers out Change in net assets Net assets - January 1 Net assets - December 31 Totals Water Sewer 2008 2007 $809,178 $797,443 $1,606,621 $1,627,521 3,150 5,950 9,100 64,350 812,328 803,393 1,615,721 1,691,871 364,862 215,003 579,865 547,829 36,126 11,585 47,711 46,611 56,294 31,008 87,302 115,332 - 467,267 467,267 437,604 136,863 48,556 185,419 185,344 160,747 47,958 208,705 147,508 754,892 821,377 1,576,269 1,480,228 $57,436 ($17,984) 39,452 211,643 10,613 66,206 15,694 18,303 (76,036) (78,047) (2,696) (2,694) (350) (350) (52,775) 3,418 (13,323) 215,061 2,139,827 - 122 (225,000) (150,356) 1,901,504 64,705 2,020,231 1,955,526 $3,921,735 $2,020,231 III. STATISTICAL SECTION (UNAUDITED) This part of the City of St. Anthony, Minnesota's Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the City of St. Anthony, Minnesota's overall financial health. Contents Page Financial Trends These tables contain trend information to help the reader understand how 125 the City's financial performance and well-being have changed over time. Revenue Capacity These tables contain information to help the reader assess the City's most 132 significant local revenue source, the property tax. Debt Capacity These tables present information to help the reader assess the affordability 136 of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information These tables offer demographic and economic indicators to help the reader 144 understand the enviornment within which the City's financial activities take place. Operating Information These tables contain service and infrastructure data to help the reader 146 understand how the information in the City's financial report relates to the services the City provides and the activities it performs. Sources: Unless otherwise noted, the information in these tables is derived from the comprehensive financial reports for the relevant year. Comparable GASB Statement 34 information is available for years beginning in 2005; the City has chosen to provide information for that year forward. Ultimately, these tables will contain information for the last ten years. 123 L - This page intentionally left blank - 124 CITY OF ST. ANTHONY, MINNESOTA NET ASSETS BY COMPONENT ( Last Four Fiscal Years (Accrual Basis of Accounting) n u Governmental activities: Invested in capital assets, net of related debt Restricted for: Debt service Tax increment purposes Unrestricted Total governmental activities net assets Business -type activities: Invested in capital assets, net of related debt Restricted for: Debt service Unrestricted Total business -type activities net assets Primary government: Invested in capital assets, net of related debt Restricted for: Debt service Tax increment purposes Unrestricted Total primary government net assets Fiscal Year 2006 $2,430,860 $2,966,021 Table I 2007 2008 $2,039,017 $3,000,881 8,164,796 6,541,771 3,228,881 2,327,517 761,339 2,611,204 783,582 943,663 5,373,139 5,861,552 9,488,919 9,582,675 $16,730,134 $17,980,548 $15,540,399 $15,854,736 $1,758,506 120,000 $1,822,792 120,000 $2,703,188 120,000 $4,745,674 120,000 2,157,418 1,973,533 1,183,416 1,042,856 $4,035,924 $3,916,325 $4,006,604 $5,908,530 $4,189,366 $4,788,813 $4,742,205 $7,746,555 8,284,796 6,661,771 3,348,881 2,447,517 761,339 2,611,204 783,582 943,663 7,530,557 7,835,085 10,672,335 10,625,531 $20,766,058 $21,896,873 $19,547,003 $21,763,266 Comparable GASB Statement 34 information is available for years beginning in 2005; the City has chosen to provide information for that year forward. Ultimately, this table will contain information for ten years. 125 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN NET ASSETS Last Four Fiscal Years (Accrual Basis of Accounting) Expenses Governmental activities: General government Public safety Public works Parks and recreation Services to other cities Housing and redevelopment Interest on long-term debt Total governmental activities expenses Business -type activities: Liquor Water Sewer Total business -type activities expenses Total primary government expenses Program revenues Governmental activities: Charges for services: Services to other cities Other activities Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Charges for services: Liquor Water Sewer Operating grants and contributions Capital grants and contributions Total business -type activities program revenues Total primary government program revenues Table 2 Page 1 of 2 Fiscal Year 2005 2006 2007 2008 $877,230 $1,115,231 $1,111,240 $1,231,302 2,402,296 2,461,222 2,359,360 2,656,975 1,414,857 1,400,951 6,266,350 1,436,309 1,499,773 806,512 450,549 416,881 606,952 649,625 911,419 940,807 424,273 2,967,835 173,098 536,068 1,014,270 1,096,390 1,411,926 1,497,107 8,239,651 10,497,766 12,683,942 8,715,449 5,034,639 5,429,222 5,740,169 5,969,076 641,490 899,686 775,828 794,433 805,171 736,967 785,491 860,918 6,481,300 7,065,875 7,301,488 7,624,427 $14,720,951 $17,563,641 $19,985,430 $16,339,876 $724,140 $747,675 $1,039,000 $1,096,200 1,192,468 999,142 876,425 841,448 691,777 684,819 609,886 522,542 2,905,063 974,678 755,930 1,684,417 5,513,448 3,406,314 3,281,241 4,144,607 5,298,404 684,096 843,409 5,814,838 6,187,185 6,359,731 778,979 841,611 812,371 776,886 850,260 803,350 6,825,909 7,370,703 7,879,056 7,975,452 $12,339,357 $10,777,017 $11,160,297 $12,120,059 Net (expense) revenue: Governmental activities ($2,726,203) ($7,091,452) ($9,402,701) ($4,570,842) Business -type activities 344,609 304,828 577,568 351,025 Total primary government net (expense) revenue (2,381,594) (6,786,624) (8,825,133) (4,219,817) 126 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN NET ASSETS Last Four Fiscal Years (Accrual Basis of Accounting) General revenues and other changes in net assets Governmental activities: Taxes: Property taxes Tax increment collections Grants and contributions Unrestricted investment earnings Miscellaneous Gain on sale of capital asset Transfers Total governmental activities Business -type activities: Investment earnings Miscellaneous Transfers Total business -type activities Total primary government Change in net assets: Governmental activities Business -type activities Total primary government Table 2 Page 2 of 2 Fiscal Year 2005 2006 2007 2008 $3,464,453 $3,668,503 410,968 851,309 124,309 94,470 358,571 514,440 214,859 96,837 - 8,730 348,250 485,000 4,921,410 5,719,289 $3,968,436 $4,118,365 1,477,929 1,753,559 159,741 88,291 698,345 403,426 77,745 36,365 580,356 (1,514,827) 6,962,552 4,885,179 44,410 78,638 74,764 18,985 499 12,490 18,303 17,089 (348,250) (485,000) (580,356) 1,514,827 (303,341) (393,872) (487,289) 1,550,901 $4,618,069 $5,325,417 $6,475,263 $6,436,080 $2,195,207 ($1,372,163) ($2,440,149) $314,337 41,268 (89,044) 90,279 1,901,926 $2,236,475($1,461,207) ($2,349,870) $2,216,263 Comparable GASB Statement 34 information is available for years beginning in 2005; the City has chosen to provide information for that year forward. Ultimately, this table will contain information for ten years. 127 i_. - This page intentionally left blank - 128 CITY OF ST. ANTHONY, MINNESOTA FUND BALANCES - GOVERNMENTAL FUNDS Last Four Fiscal Years (Modified Accrual Basis of Accounting) Table 3 All other governmental funds Reserved $5,537,424 Fiscal Year $4,116,654 $3,595,470 Unreserved, reported in: 2005 2006 2007 2008 General Fund: 5,399,955 5,335,977 5,650,265 5,576,157 Reserved $39,805 $44,852 $46,543 $51,205 Unreserved 1,147,914 1,237,373 1,391,816 1,389,299 Total general fund $1,187,719 $1,282,225 $1,438,359 $1,440,504 All other governmental funds Reserved $5,537,424 $5,564,131 $4,116,654 $3,595,470 Unreserved, reported in: Special revenue funds 5,399,955 5,335,977 5,650,265 5,576,157 Capital projects funds 894,116 1,500,372 695,197 967,355 Total all other governmental funds $11,831,495 $12,400,480 $10,462,116 $10,138,982 Comparable GASB Statement 34 information is available for years beginning in 2005; the City has chosen to provide information for that year forward. Ultimately, this table will contain information for ten years. I 129 L. CITY OF ST. ANTHONY, MINNESOTA CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Four Fiscal Years (Modified Accrual Basis of Accounting) Revenues: General property taxes Tax increment collections Licenses, fees and permits Intergovernmental Special assessments Charges for services Fines and forfeits Cable franchise fees Investment income Contributions and donations Miscellaneous Total revenues Expenditures: Current: General government Public safety Public works Parks and recreation Services to other cities Nondepartmental Housing and redevelopment Capital outlay: General government Public safety Public works Parks and recreation Debt service: Principal retirement Interest Paying agent fees Professional service Issuance costs Construction/acquisition costs Developer incentives District decertified - repayment of tax increments Total expenditures Revenues over (under) expenditures "fable 4 Page 1 of 2 776,110 Fiscal Year 945,295 2005 2006 2007 2008 $3,430,286 $3,649,764 $3,957,749 $4,097,493 410,968 851,309 1,469,532 1,682,549 548,972 244,170 213,842 247,878 1,201,555 954,911 706,080 2,039,592 1,548,836 589,812 441,327 385,197 1,057,781 1,113,298 1,403,419 1,451,925 101,273 135,960 164,788 139,421 69,577 70,737 85,162 92,606 354,749 507,615 689,428 400,038 - 6,300 37,100 3,950 540,229 511,851 404,611 186,449 9,264,226 8,635,727 9,573,038 10,727,098 776,110 952,291 945,295 1,076,699 2,119,568 2,255,783 2,165,891 2,446,434 772,565 759,254 809,751 679,269 1,467,289 783,791 428,341 394,673 606,952 649,625 911,419 940,807 5,228 1,501 48,735 23,387 424,273 439,422 173,098 212,583 572 6,389 125 - 139,648 229,174 12,993 - 31,040 21,056 316,264 318,668 - 19,712 - - 1,495,000 4,765,000 2,195,000 2,305,000 997,352 1,022,069 1,313, 578 1,450,248 14,386 9,373 11,501 10,601 16,097 9,140 1,901 5,080 - - 208,545 - 2,901,864 2,108,395 5,366,376 3,419,607 - 2,769,938 3,592,385 323,485 - 36,580 - - 11,767,944 16,838,493 18,501,198 13,606,541 (2,503,718) (8,202,766) (8,928,160) (2,879,443) 130 II N a 0 M t n CITY OF ST. ANTHONY, MINNESOTA CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Four Fiscal Years (Modified Accrual Basis of Accounting) Other financing sources (uses): Bonds issued Premium on debt issued Discount on debt issued Transfers in Transfers out Sale of capital assets Total other financing sources (uses) Net change in fund balance Debt service as a percentage of noncapital expenditures Debt service as percentage of total expenditures Table 4 Page 2 of 2 Fiscal Year 2006 2007 2008 $1,695,000 $8,165,000 $6,690,000 $1,910,000 30,669 - 8,749 - (3,069) (213) - 467,022 1,775,848 4,275,129 1,832,828 (118,772) (1,290,848) (3,827,825) (1,207,828) 12,852 18,855 8,744 14,705 2,056,102 8,696,455 7,145,835 2,558,454 ($447,616) $493,689 ($1,782,325) ($320,989) 29.0% 40.2% 28.6% 38.2% 21.4% 34.5% 20.2% 27.7% Comparable GASB Statement 34 information is available for years beginning in 2005; the City has chosen to provide information for that year forward. Ultimately, this table will contain information for ten years. 131 CITY OF ST. ANTHONY, MINNESOTA TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY Table 5 Last Ten Fiscal Years 132 Commercial/ Total Fiscal Adjusted Total Estimated Tax Capacity Payable Residential Industrial All Tax Disparity Tax Capacity Direct Tax Market as a Percent Year Property Property Other Capacity Contribution Value Rate Value ofEMV 1999 $4,141,434 * $1,611,956 * $122,978 * $5,876,368 ($162,799) $5,713,569 32.50% $353,614,300 1.62% ** 2000 4,532,263 1,658,367 110,097 6,300,727 (184,724) 6,116,003 30.63% 383,067,100 1.60% ** 2001 4,970,738 1,833,267 108,643 6,912,648 (201,588) 6,711,060 30.55% 417,647,700 1.61% 2002 3,979,387 * 1,467,645 * 86,976 * 5,534,008 (319,514) 5,214,494 50.33% 460,129,700 1.13% ** 2003 4,703,934 1,307,337 66,005 6,077,276 (318,956) 5,758,320 47.05% 520,877,700 1.11% 2004 5,061,743 1,387,360 67,875 6,516,978 220,246 6,737,224 52.01% 576,666,300 1.17% 2005 5,758,863 1,509,783 70,799 7,339,445 (30,542) 7,308,903 50.31% 636,972,900 1.15% 2006 6,449,616 2,001,921 65,285 8,516,822 (391,888) 8,124,934 46.58% 730,541,000 1.11% 2007 7,894,132 2,575,759 * 64,903 10,534,794 (1,374,734) 9,160,060 45.62% 893,542,800 1.03% 2008 7,537,190 2,684,972 67,599 10,289,761 (1,260,607) 9,029,154 51.61% 869,823,300 1.04% Source: Official Statements for the City of St. Anthony. * A complete breakdown of tax capacity was not available, these numbers have been estimated by considering total tax capacity and the related percentage breakdown from the previous year ** The Minnesota Legislature reduced some of the "class rates" used to calculate tax capacity values in levy years 1998,1999 and 2001. The lower rates reduce the amount of Taxable Market Value that converts to value for the calculation of property taxes and tax rates. 132 CITY OF ST. ANTHONY, MINNESOTA DIRECT AND OVERLAPPING PROPERTY TAX RATES Last Ten Fiscal Years City Overlapping Rates* 1 Fiscal Direct School Other Year Rate District Districts County 1999 32.50% 60.53% 13.41% 40.99% 2000 30.63% 56.35% 13.27% 39.66% 2001 30.55% 60.92% 12.84% 37.62% 2002 50.33% 18.37% ** 14.09% 50.41% 2003 47.05% 14.93% 15.63% 50.61% 2004 52.01% 22.10% 13.45% 47.32% 2005 50.31% 19.33% 13.93% 44.17% 2006 46.58% 21.78% 14.65% 41.02% 2007 45.62% 19.73% 13.81% 38.57% 2008 51.61% 32.04% 13.35% 40.41% Source: Official Statements for the City of St. Anthony *Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all City property owners; for example, although the county property tax rates apply to all City property owners, other District rates apply only to the approximately one-third of City property owners whose property is located within that District's geographic boundaries. **The State of Minnesota enacted significant property tax reform measures in 2001. Among these measures were several provisions which substantially reduced school district property tax levies, replacing the tax levy funds with 1 state aid. As a result, tax levies and tax rates for most school districts for taxes payable in 2002 are substantially lesE than the comparable figures for prior years. 133 Table 6 Total 147.43% 139.90% 141.93% 133.20% 128.21% 134.88% 127.74% 124.03% 117.73% 137.41% CITY OF ST. ANTHONY, MINNESOTA PRINCIPAL PROPERTY TAXPAYERS Current Year and Nine Years Ago Table 7 Source: Official Statements for the City of St. Anthony 134 2008 1999 Percentage Percentage Tax of Total City Tax of Total City Capacity Capacity Capacity Capacity Taxpayer Value Rank Value Value Rank Value St. Anthony Retail Development $899,438 1 9.96% $ - - 0.00% St. Anthony Leased Housing Assoc. 364,550 2 4.04% - - 0.00% Autumn Woods Partnership LP 205,800 3 2.28% - - 0.00% Equinox Properties LLC 179,550 4 1.99% 134,064 5 2.35% LG Anderson LLC/Apache Medical 89,250 7 0.99% - - 0.00% Northern Gopher Enterprises, Inc. 105,345 5 1.17% - - 0.00% St. Anthony Shopping Center 98,252 6 1.09% - - 0.00% Xcel Energy - 0.00% - - 0.00% Landau -3925 Pleasant 82,808 8 0.92% - - 0.00% Chandler Place LP 82,329 10 0.91% - - 0.00% St. Anthony Nursing Home LP 82,449 9 0.91% 194,184 2 3.40% St. Marie Company - - 0.00% 163,877 4 2.87% Glaser Financial Group Inc. - - 0.00% 263,280 1 4.61% Northern States Power Company - - 0.00% 101,035 6 1.77% Village North - - 0.00% 97,871 7 1.71% St. Anthony Business Center - - 0.00% - 0.00% Super Value - - 0.00% 192,916 3 3.38% Individual - - 0.00% - 0.00% Total $2,189,771 24.26% $1,147,227 22.33% Total All Property $9,029,154 $5,713,569 Source: Official Statements for the City of St. Anthony 134 r CITY OF ST. ANTHONY, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Table 8 r Fiscal Taxes Collected Within The Collections Year Levied Fiscal Year of the Levy in Total Collections to Date Ended For The Percentage Subsequent Percentage ' December 31, Fiscal Year Amount of Levy iD Years Amount of Levy 1999 $1,868,888 $1,862,491 99.66% $6,202 $1,868,693 99.99% 2000 1,900,515 1,893,309 99.62% 9,973 1,903,282 100.15% 2001 2,051,067 2,038,887 99.41% 7,788 2,046,675 99.79% 2002 2,634,866 2,625,911 99.66% 7,923 2,633,834 99.96% 2003 2,731,541 2,721,724 99.64% 8,129 2,729,853 99.94% 2004 3,370,364 3,349,081 99.37% 12,095 3,361,176 99.73% 2005 3,689,759 3,655,463 99.07% 32,287 3,687,750 99.95% j 2006 3,812,957 3,776,369 99.04% 33,327 3,809,696 99.91% 2007 4,123,032 4,079,891 98.95% 30,012 4,109,903 99.68% 2008 4,415,588 4,352,700 98.58% - 4,352,700 98.58% ]r) Beginning with payable year 2002, Market Value Homestead Credit is included in the operating levy. Sources: 1999 - 2004 Official Statements for the City of St. Anthony 2005 - 2008 St. Anthony Finance Department 135 CITY OF ST. ANTHONY, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE Last Four Fiscal Years Source: St. Anthony Finance Department Information is not available for years prior to 2005. 136 Governmental Activities General Tax Total Percentage Fiscal Obligation Improvement Increment Revenue Fannie Governmental of Adjusted Year Bonds Bonds Bonds Bonds Mae Loan Activities Tax Capacity 2005 $1,435,000 $11,210,000 $2,355,000 $6,600,000 $3,350,000 $24,950,000 341.36% 2006 1,245,000 11,300,000 6,145,000 6,310,000 3,350,000 28,350,000 348.93% 2007 1,055,000 12,675,000 10,605,000 6,010,000 2,500,000 32,845,000 358.57% 2008 945,000 13,015,000 10,375,000 5,615,000 2,500,000 32,450,000 359.39% Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (') Information not available is labeled N/A Source: St. Anthony Finance Department Information is not available for years prior to 2005. 136 r 1 Business -Type Activities Sewer/ Liquor Total Water Revenue Business -Type 1 Bonds Bonds Activities f $2,125,000 I $495,000 $2,620,000 i 2,050,000 425,000 2,475,000 1,975,000 350,000 2,325,000 1,895,000 270,000 2,165,000 E 0 Table 9 Sewer/ Water Bonds Total Percentage Per Primary of Personal Per Customer Government Income 1 Capita $932 $27,570,000 N/A $3,357 896 30,825,000 N/A 3,924 1,070 32,845,000 N/A 3,847 824 32,450,000 N/A 3,818 137 CITY OF ST. ANTHONY, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of December 31, 2008 Governmental Unit Debt repaid with property taxes: (D School Districts: ISD No. 282 NE Metro Intermediate School District No. 916 Counties: Hennepin Ramsey Other: Metropolitan Council Three Rivers Park District Subtotal - overlapping debt City direct debt (2) Total direct and overlapping debt Sources: (')Official Statements for City of St. Anthony (I) St. Anthony Finance Department Estimated Debt Percentage Outstanding Applicable* Table 10 Estimated Share of Overlapping Debt $24,575,000 84.1841% $20,688,245 0 0 576,820,000 0.4066% 2,345,070 165,540,000 0.4355% 720,871 157,950,000 0.2476% 391,097 75,800,000 0.5470% 414,589 24,559,872 29,950,000 $54,509,872 Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is home by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long -tern debt, the entire debt burden bome by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. *For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value. 138 M 0 2005* 2006* CITY OF ST. ANTHONY, MINNESOTA 2008 LEGAL DEBT MARGIN INFORMATION Table 11 r Last Four Fiscal Years I $26,094,699 Legal Debt Margin Calculation for Fiscal Year 2008 4,429,013 Market value $869,823,300 Debt limit (3% of market value) 26,094,699 Debt applicable to limit: $20,352,850 General obligation bonds 6,665,000 Less: Amount set aside for repayment of general obligation debt (923,151) Total net debt applicable to limit 5,741,849 Legal debt margin $20,352,850 M 0 2005* 2006* 2007* 2008 Debt limit $13,406,318 $14,610,820 $17,870,856 $26,094,699 Total net debt applicable to limit 4,776,007 4,429,013 4,099,637 5,741,849 Legal debt margin $8,630,311 $10,181,807 $13,771,219 $20,352,850 Total net debt applicable to the limit as a percentage of debt limit 35.63% 30.31% Source: Market Value - Hennepin County and Ramsey County, Minnesota Assessor's Offices Information is not available for years prior to 2005. *Debt limit was 2% of market value 139 30.31% 22.00% CITY OF ST. ANTHONY, MINNESOTA PLEDGED REVENUE COVERAGE Last Four Fiscal Years 140 Storm Sewer Revenue Bonds Utility Less Net Fiscal Service Operating Available Debt Service Year Charges Expenses Revenue Principal Interest Coverage 2005 $163,951 $ - $163,951 $95,000 $68,448 100% 2006 169,255 - 169,255 100,000 63,670 103% 2007 167,373 - 167,373 105,000 58,595 102% 2008 167,373 - 167,373 110,000 53,220 103% Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest, depreciation, or amortization expenses. Information is not available for years prior to 2005. 140 Table 12 Page 1 of 2 a r 0 141 L Water and Sewer Revenue Bonds Utility Less Net Service Operating Available Debt Service Charges Expenses Revenue Principal Interest Coverage $1,527,505 $1,210,943 $316,562 $75,000 $82,195 201% 1,556,004 1,387,657 168,347 75,000 80,694 108% 1,691,871 1,480,228 211,643 75,000 78,750 138% 1,615,721 1,576,269 39,452 80,000 77,236 25% a r 0 141 L CITY OF ST. ANTHONY, MINNESOTA PLEDGED REVENUE COVERAGE Last Four Fiscal Years 142 Liquor Revenue Bonds Less Net Fiscal Net Sales Operating Available Debt Service Year (Gross Profit) Expenses Revenue Principal Interest Coverage 2005 $1,169,359 $766,082 $403,277 $65,000 $32,150 415% 2006 1,362,796 839,959 522,837 70,000 29,619 525% 2007 1,475,679 985,377 490,302 75,000 24,438 493% 2008 1,475,173 1,049,110 426,063 80,000 20,125 426% Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest, depreciation, or amortization expenses. Information is not available for years prior to 2005. 142 Table 12 Page 2 of 2 r 143 Improvement Bonds Tax Increment Bonds Special Tax Assessment Debt Service Increment Debt Service Collections Principal Interest Coverage Collections Principal Interest Coverage $1,548,836 $485,000 $323,582 192% $410,968 $105,000 $145,381 164% 589,812 3,100,000 390,118 17% 851,309 1,185,000 95,263 66% 441,327 675,000 480,360 38% 1,469,532 180,000 384,296 260% 385,197 1,570,000 495,649 19% 1,682,549 230,000 538,369 219% 143 CITY OF ST. ANTHONY, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years Table 13 Sources: Information is not tracked on a yearly basis for individual cities. Data for Hennepin County was used. Source - Hennepin County 2 Information not available is labeled N/A 3 Official Statements for the City of St. Anthony 144 Per Capita Fiscal Personal Personal Unemployment Year Population 131 Income 121131 Income' Rate' 1999 8,435 $338,057,930 $40,078 2.00% 2000 8,012 345,116,900 43,075 2.60% 2001 8,019 349,171,317 43,543 3.60% 2002 8,019 352,090,233 43,907 4.60% 2003 8,012 363,296,128 45,344 4.80% 2004 8,019 385,272,855 48,045 4.50% 2005 8,012 N/A N/A 3.40% 2006 7,855 N/A N/A 3.60% 2007 8,361 N/A N/A 4.20% 2008 8,361 N/A N/A 5.00% Sources: Information is not tracked on a yearly basis for individual cities. Data for Hennepin County was used. Source - Hennepin County 2 Information not available is labeled N/A 3 Official Statements for the City of St. Anthony 144 CITY OF ST. ANTHONY, MINNESOTA PRINCIPAL EMPLOYERS Table 14 Current Year and Nine Years Ago t I Employer Employees 2008 Rank Percentage of Total City Employment Employees 1999* Rank Percentage of Total City Employment St. Anthony Health Center and Chandler Place 285 1 250 1 7.39% ISD No. 282 (St. Anthony - New Brighton) 240 2 187 2 5.53% Wal-Mart 238 3 - - - Cub Foods 175 4 - - - City of St. Anthony 125 5 - - - Industrial Custom Products 50 9 - - - St. Charles Borromeo Parish 65 7 - - - Happy's Potato Chip Company 50 8 - - - Triangle Industries 89 6 - - - Culver's of St. Anthony - - - - - Francis A. Gross Golf Course 50 10 - - - Applebee's - - - Apache Plaza Mall - - 115 3 - Herbergers 85 4 - Wendy's - - - - r r Total 1,367 0.00% 637 12.92% t * Data is not available for more than the top four employers in 1999 145 CITY OF ST. ANTHONY, MINNESOTA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program General government: Administration Finance Police: Officers Support staff Community service officer Volunteers (non -paid) Fire: Firefighters Volunteers (paid on call) Public works: Administration Street Park Water/Sewer Mechanic Seasonal Liquor operations: Off -sale: Full-time Market Place - part-time Silver Lake Village - part-time On -sale: Full-time Stonehouse - part-time Total Source: City of St. Anthony Full -Time Equivalent Employees as of December 31, 1999 2000 2001 3.00 3.00 3.00 4.50 4.50 4.50 20.00 20.00 20.00 2.00 2.00 2.00 1.00 1.00 1.00 12.00 12.00 12.00 7.00 7.00 7.00 2.75 2.75 3.00 2.00 2.00 2.00 6.00 6.00 6.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 10.00 10.00 10.00 4.00 4.00 4.00 5.25 5.25 5.25 5.25 5.25 5.25 4 4 4 9 9 9 102.50 102.50 102.75 146 Table 15 11 n 1 147 L. Full -Time Equivalent Employees as of December 31, 2002 2003 2004 2005 2006 2007 2008 3.00 3.00 3.00 3.00 3.00 3.00 3.00 4.50 4.50 4.50 4.50 4.50 4.50 4.75 i 20.00 20.00 20.00 20.00 20.00 22.00 23.00 2.00 2.00 2.00 2.00 2.00 2.00 2.50 1.00 0.50 0.50 0.50 0.50 1.00 1.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 5.00 5.00 5.00 6.00 6.00 6.00 6.00 2.00 2.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 4.00 5.00 5.00 4.00 4.00 4.00 4.00 5.25 5.25 5.25 5.25 5.25 5.25 5.25 5.25 5.25 5.25 5.25 5.25 5.25 5.25 4 9 101.75 89.50 90.50 90.50 90.50 93.00 94.75 11 n 1 147 L. CITY OF ST. ANTHONY, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program Police: * Moving violation Non-moving violations DWI Traffic arrests Gross misdemeanor arrests Felony arrests Warrant arrests Fire: Emergency responses Medical responses Fires Inspections ** Building inspection: Permits issued Other public works: Street resurfacing (miles) Potholes filled (tons) Water: New connections Water mains breaks Average daily consumption (thousands of gallons) Peak daily consumption (thousands of gallons) * Police statistics are for St Anthony only ** Began monitoring inspection in 2006 *** Unavailable for years prior to 2002 ****Unavailable Source: City of St. Anthony 148 Fiscal Year 1999 2000 2001 2,088 1,976 1,778 443 487 447 38 28 26 434 508 455 175 141 110 27 39 45 84 71 48 845 938 902 619 681 618 26 33 44 414 314 313 1 1 1 12 12 9 9 9 8 903 1,002 971 Table 16 149 Fiscal Year 2002 2003 2004 2005 2006 2007 2008 1,833 1,772 2,072 1,560 2,246 2,357 2,137 527 601 544 501 632 627 494 25 37 60 56 114 26 61 ' 461 400 587 515 750 831 815 160 179 150 181 162 158 203 37 52 32 54 67 45 44 1 32 31 31 23 22 29 32 885 901 925 1,043 980 976 1,055 576 568 586 646 704 696 768 46 47 46 47 28 40 89 ' 197 78 81 313 277 341 346 292 255 262 1 1 1 1 1 2 2 10 8 8 7 5 35 20 - - - - 14 16 10 7 10 8 10 3 32 8 876 961 898 903 922 990 902 1,495 1,278 1,601 2,192 2,454 2,500 2,157 149 CITY OF ST. ANTHONY, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program Police: Stations Patrol units Fire stations(') Other public works: Streets (miles) Parks and recreation: Acreage Playgrounds Baseball/softball diamonds (b) Soccer/football fields (b) Community centers Liquor operations: On/off sale location(` Water: Water mains (miles) Fire hydrants Storage capacity (thousands of gallons) Wastewater: Sanitary sewers (miles) Storm sewers (miles) a.) Leased Fire Station during construction b.) Park construction Silver Point 2000-2001, Central Park 2003-2004 c.) Closed Stonehouse Bar and SAV I in 2003, reopened SAV I in 2004, SAV 2 closed 3 weeks in September 2004 to move to new location. Source: City of St. Anthony 150 Fiscal Year 1999 2000 2001 1 1 1 11 11 11 I 1 1 24.7 24.7 24.7 40 40 40 3 2 2 6 4 4 I 3 3 3 24.7 24.7 24.7 283 283 283 2,250 2,250 2,250 24.7 24.7 24.7 15.0 15.0 15.0 Table 17 151 Fiscal Year 2002 2003 2004 2005 2006 2007 2008 1 I I ] I 1 1 11 11 12 12 12 12 12 1 1 I 1 1 1 24.7 24.7 24.7 24.7 24.7 24.7 24.7 40 40 40 40 40 40 40 4 3 3 4 4 4 4 3 3 7 7 7 7 7 2 2 2 2 2 1 1 1 1 1 1 1 3 1 2 2 2 2 2 24.7 24.7 24.7 24.7 24.7 24.7 24.7 283 283 283 283 283 287 287 2,250 2,250 2,250 2,250 2,250 2,250 2,250 24.7 24.7 24.7 24.7 24.7 24.7 24.7 15.0 15.0 15.0 15.0 15.0 15.0 15.0 151 - This page intentionally left blank - 152 r r I r r L L L L L