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HomeMy WebLinkAbout2013 CAFRCity of Saint Anthony Saint Anthony, Minnesota 2013 Comprehensive Annual Financial Report Our mission is to be a progressive and livable community, a walk able village, which is sustainable, safe and secure COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF ST. ANTHONY, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2013 Prepared By: Finance Department Shelly Rueckert, Finance Director This page intentionally left blank - CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Page Reference No. 1. INTRODUCTORY SECTION Letter of Transmittal 3 Organization 7 Organizational Chart 8 II. FINANCIAL SECTION Independent Auditor's Report 11 Management's Discussion and Analysis 15 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Position Statement I 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 - Governmental 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 Position - Proprietary Funds Statement 6 37 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds Statement 7 38 Statement of Cash Flows - Proprietary Funds Statement 8 39 Statement of Fiduciary Net Position - Fiduciary Fund Statement 9 40 Notes to Financial Statements 41 Required Supplementary Information: Budgetary Comparison Schedule - General Fund Statement 10 88 Budgetary Comparison Schedule - Note to RSI 93 Schedule of Funding Progress - Other Post Employment Benefits Plan Statement 11 94 L_ CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Subcombining Balance Sheet - Nonmajor Special Revenue Funds Page 101 Reference No. Combining and Individual Nonmajor Fund Financial Statements and Schedules: 123 Combining Balance Sheet - Nonmajor Governmental Funds Statement 12 97 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Subcombining Balance Sheet - Nonmajor Debt Service Funds Nonmajor Governmental Funds Statement 13 98 Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 14 101 Subcombining Statement of Revenues, Expenditures and Changes in Exhibit 2 123 Fund Balance - Nonmajor Special Revenue Funds Statement 15 102 Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 16 104 Subcombining Statement of Revenues, Expenditures and Changes in Exhibit 4 125 Fund Balance - Nonmajor Debt Service Funds Statement 17 106 Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 18 110 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Capital Project Funds Statement 19 112 Special Revenue Funds: Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Community Center Fund Statement 20 114 Police Forfeiture Fund Statement 21 115 Recycling Fund Statement 22 116 HRA Fund Statement 23 117 Fire Education/Training Fund Statement 24 118 Statement of Changes in Assets and Liabilities - Agency Fund Statement 25 119 Supplementary Financial Information: HRA Debt Service Fund Balance Sheet Exhibit 1 122 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 2 123 HRA Projects Fund: Balance Sheet Exhibit 3 124 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 4 125 Water and Sewer Enterprise Fund: Schedule of Revenues, Expenses and Changes in Fund Net Position Exhibit 5 126 CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Page Revenue Capacity Tax Capacity Value and Estimated Market Value of Taxable Property Reference No. III. STATISTICAL SECTION (Unaudited) Table 6 135 Financial Trends: Table 7 136 Net Position by Component Table 1 128 Changes in Net Position Table 2 129 Fund Balances - Governmental Funds Table 3 131 Changes in Fund Balances - Governmental Funds Table 4 132 Revenue Capacity Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 134 Direct and Overlapping Property Tax Rates Table 6 135 Principal Property Taxpayers Table 7 136 Property Tax Levies and Collections Table 8 137 Debt Capacity Ratios of Outstanding Debt by Type Table 9 138 Direct and Overlapping Governmental Activities Debt Table 10 140 Legal Debt Margin Information Table 11 141 Pledged Revenue Coverage Table 12 142 Demographic and Economic: Demographic and Economic Statistics Table 13 146 Principal Employers Table 14 147 Operating Information: Full -Time Equivalent City Government Employees by Function/Program Table 15 148 Operating Indicators by Function/Program Table 16 150 Capital Asset Statistics by Function/Program Table 17 152 This page intentionally left blank - I. INTRODUCTORY SECTION - This page intentionally left blank - '.!b61a hr June 9, 2014 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, 2013. 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 unmodified opinion on the City of St. Anthony's financial statements for the year ended December 31, 2013. 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 complement 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 2.35 square miles and serves a population of 8,226. 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. 3301 Silver Lake Road, St. Anthony, MN 55418-1699*www.ci.saint-anthony.mn.us• (612) 782-33019 (612) 782-3302 Our mission is to be a progressive and livable community, a walkable village, which is sustainable, safe and secure. �.. 3 The City is served by Independent School District (ISD) 4282 (St. Anthony), which has a 2012/2013 enrollment of approximately 1,757, operates one elementary school, a middle school and senior high in the City. In addition, a private school, St. Charles Borromeo, offers K-8 grade education with enrollment of approximately 300 students. 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, overseeing the day- to-day operations of the City, and 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) & 7(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 the 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). Transfers of appropriations between departments require the approval of the City Council. Budget -to -actual comparisons are provided on Statement 10 as required supplementary information to the basic financial statements for the governmental funds. 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 pursue redevelopment opportunities. 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 Funds have 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 a comprehensive budget process 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. Risk Management: The City uses a proactive approach to limit its liability risk and insurance costs. To assist employees who are injured while on duty, Managed Care Program is used to reduce medical expenses and other costs relating to workplace injuries. The program assists employees with a treatment plan which 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. Awards: The City of St. Anthony received the following awards in 2013: 1) League of Minnesota Cities — City of Excellence Grants: Each year, the City actively participates in Federal, State and County administered grants. In 2013 the Police, Fire, Public Works and Administration received a variety of safety and training grants. A list of the grants includes: A. Metropolitan Council Environmental Services — Sanitary Sewer Improvements. B. Mississippi Watershed Management Organization — Infrastructure Grant. C. League of Minnesota Cities — City of Excellence Award. D. Federal Emergency Management Agency (FEMA) — Storm Damage E. Minnesota Board of Firefighter Training & Education — Firefighter Training & Education Reimbursement. F. Minnesota Firefighter Disability Grant. G. Hennepin County Pass EMPG Pass Thru Funds. H. Safe and Sober Grant — Alcohol Compliance Grant. I. State of Minnesota — Vest Grant. J. Ramsey County — Safe and Sober Grant. K. Centerpoint Community Development Grant — Fire Department Equipment. L. University of Minnesota — Fire Department Lucas Device 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 2013, the City continued to receive funding for the "Citizens Academy" and "Crime Prevention" which provides alcohol awareness training and public safety for our residents. Acknowledgements: Finally, we would like to express our gratitude to the Mayor and the City Council. Their unfailing support for maintaining the highest standard of professionalism in the management of the City of St. Anthony's finances results in a fiscally sustainable City government. Respectfully submitted, Mark Casey City Manager Shelly Rueckert Finance Director CITY OF ST. ANTHONY, MINNESOTA ORGANIZATION December 31, 2013 Term Expires Mayor: Jerry Faust December 31, 2015 Council Members Hal Gray December 31, 2015 Jim Roth December 31, 2015 Randy Stille December 31, 2017 Jan Jenson December 31, 2017 City Manager: Mark Casey Appointed Finance Director: Shelly Rueckert Appointed 7 m 0 O O 4 OA P7 3 z 0 u v 0 x y 0 cu w w II. FINANCIAL SECTION - This page intentionally left blank - 10 TAUTGEs REDPATH, LTD. Certified Public Accountants INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of St. Anthony, Minnesota Report on the Financial Statements 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, 2013, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hibtr.com Equal Opportunity Employer 100 -Percent Employee-d"ed HLB Taulges Rodpath. Ltd, is a member of HLB International, a world-wide network of independent accounting firms and business atlNsors. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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, 2013, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter — Implementation of GASB 65 As described in Note 18 to the financial statements, in 2013, the City adopted new accounting guidance, GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. Our opinion is not modified with respect to this matter. Report on Summarized Comparative Information We have previously audited the City of St. Anthony, Minnesota's 2012 financial statements, and we expressed an unmodified audit opinion on the respective financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information in our report dated June 13, 2013. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2012 is consistent, in all material respects, with the audited financial statements from which they were derived. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information and OPEB Schedule of Funding Progress on pages 15 - 25 and 88 - 94 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 12 Other Information 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 the supplementary financial information are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nomnajor fund financial statements and schedules and the supplementary financial information are fairly stated in all material respects in relation to the basic financial statements 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 do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 9, 2014, 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of St. Anthony, Minnesota's internal control over financial reporting and compliance. 11de 7a ek� Ad, HLB TAUTGES REDPATH, LTD. June 9, 2014 13 - This page intentionally left blank - 14 L 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, 2013. 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 $25,918,071 (net position). Of this amount, $725,790 (unrestricted net position) may be used to meet the City's ongoing obligations to citizens and creditors. • The City's total net position increased by $1,412,870 from the prior years stated net position. • As of the close of the current fiscal year, the City of St. Anthony's governmental funds reported combined ending fund balances of $9,550,587, a decrease of $1,112,447 in comparison with the prior year stated fund balances. • At the end of the current fiscal year, unassigned fund balance for the General Fund was $2,074,490 or 35.42% of total General Fund Budget expenditures. • The City of St. Anthony's total bonded debt decreased by $2,575,000 (6.9%) during the current fiscal year. The key factors in this decrease were; 1) payoff of 2006A G.O. Improvement bonds totaling $2,120,000; 2) principal retirement of $2,125,000; 3) issuance of the 2013A $1,775,000 G.O. Improvement bonds; 4) the payoff and refunding of Water Sewer Revenue bonds for a net reduction in debt of $105,000. 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 position presents information on all of the City of St. Anthony, Minnesota's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of St. Anthony, Minnesota is improving or deteriorating. 15 Governmental Activities. Governmental activities increased the City of St. Anthony's net position by $179,582 compared to prior year increase of $1,734,198. The key element for this change relates to the City contributing assets from Governmental Activities to Business -Type Activities. Revenues by Source - Governmental Activities Othertaxes Other 110, its and ns Capital grants and contributions Property taxes 7% 50% 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 position by $1,233,288. The key factor for the increase was assets were contributed to the Water/Sewer Funds by the Annual Street Improvement Funds. Rate increases for all utility services were made for 2013 and 2014 billings. Revenues by Source - Business -Type Activities 99% Financial Analysis of the City'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. As of the end of the current fiscal year, the City of St. Anthony, Minnesota's governmental funds reported combined ending fund balances of $9,550,587, a decrease of $1,112,447 in comparison with the prior year restated amounts. The ending fund balance by GASB 54 designation is as follows: Nonspendable $74,098 Restricted 7,272,849 Committed 94,064 Assigned 1,707,483 Unassigned 402,093 Total $9,550,587 21 The General Fund is the chief operating fund of the City of St. Anthony, Minnesota. At the end of the current fiscal year, unassigned fund balance of the General Fund was $2,074,490, while total fund balance reached $2,148,539. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 34% of total General Fund expenditures and total fund balance represents 35.2% of that same amount. During the current fiscal year, the fund balance in the General Fund increased by $173,202. The Street Improvement Debt Service Fund decreased by $1,734,319 as debt was refinanced in 2012 and proceeds were used for retirement of debt in early 2013. The HRA Debt Service Fund decreased by $30,564 as annual revenue collected and transfers in was less than annual debt service requirements. The Street Improvement Projects Fund decreased by $104,339 substantially due to the closing transfer of certain improvement funds to their related debt service fund. The HRA Projects Funds increased by $29,515 substantially due to the payments for pay as you go notes loans being accrued in the current periods to match revenue. The 2012 Street Improvement Project fund decreased by $38,387 due to final construction costs paid. The 2013 Street Improvement Project fund increased by $481,996 due to bond proceeds received less current construction expenditures. The 2014 Street Improvement Project fund decreased by $138,667 due to preliminary engineering costs prior to construction, 2014 bonding proceeds will be used to repay these preliminary expenditures. Non -major Special Revenue Funds decreased by $80,369 to a balance of ($97,479) substantially due to a $145,000 transfer of Community Center funds to the building improvement fund, offset by HRA and Recycling fund balances increasing. Non -major Debt Service Funds had a total fund balance of $1,981,209, all of which is restricted for the payment of debt service. The net increase in fund balance during the current year in the non -major debt service funds was $308,074, of which $114,063 represents the addition of the 2013 Street Improvement Bond Fund. Non -major Capital Project Funds had a total fund balance of $1,229,980, an increase of $232,534, which included the transfer from the non -major special revenue funds discussed above. Proprietaryfunds. 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. 22 Total net position in the Liquor Operations and Water and Sewer Funds at the end of the year amounted to $11,570,912. The total net position for each fund was: Liquor— $2,238,739; Water and Sewer — $9,332,173. General Fund Budgetary Highlights Variances from actual to budget can be briefly summarized as follows: • Licenses and permits were $114,142 greater than budget due to construction related permits being $104,762 greater than anticipated and along with activity being budgeted conservatively • General property taxes were $102,105 greater than budget due to an allowance for uncollected taxes being included in budgeted revenues. • Police Grants revenues exceed budget by $97,020 due to non -budgeted grant collections related to disaster relief efforts. • Fire State Aid —was greater than budget by $13,097 due to additional supplemental funding provided by the State. The supplemental aid was not included in the budget. • County other was greater than budget by $62,415 which is attributable to a non -budgeted grant received for firefighter equipment. • Antenna rentals were greater than budget by $17,055 due to an additional antenna lease acquired during 2013. • Charges for services — other was greater than budget by $32,318 due to greater fuel usage charges to the City of New Brighton and additional services provided to the City of Birchwood Village during 2013. • Miscellaneous other revenues were $44,618 less than budget due to anticipated dividends on workers compensation insurance not being distributed by the League of Minnesota Insurance Trust along with other decrease in miscellaneous. • General Management — other services and charges were greater than budget by $28,146 due the addition of Contracted services for Human Resources, Healthy and Safety review services and enhanced professional development efforts. • Finance — other services and charges were $23,137 greater than budget due to increased liability insurance premiums due to the changes in underwriting policies by the League of Minnesota Insurance Trust. • Planning and zoning —other services and charges was $33,062 greater than budget due to expanded contracted planning, which was consistent with the growth of building permit and plan check revenues. • Police protection — personal services was $57,029 greater than budget due to the addition of an officer in charge pay code and the transition of a patrol officer position to a sergeant to enhance risk management. Other budget variances were the result of changes in benefit elections and greater resource allocations to meet staffing needs. • Fire protection — other services and charges was $32,800 greater than budget due to costs associated with the reimbursed grant expenditures. • Protective Inspections — other services and charges was $59,313 greater than budget due to greater construction related revenues. • Public Works Street maintenance — personal services was greater than budget by $30,079 due to the additional labor incurred due to severe summer storm and the length of winter snow- plowing season. 23 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, 2013 amounts to $44,966,757 (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 decrease in the City of St. Anthony, Minnesota's investment in capital assets for the current fiscal year is .75%. Major capital asset events during the current fiscal year included the following: The annual street reconstruction and infrastructure improvement project is reflected in the Construction in progress. Land Land improvement Buildings and structures Furniture and fixtures Software intangibles Infrastructure/streets Storm sewers Storm water Less accumulated depreciation Construction in progress Total City of St. Anthony, Minnesota's Capital Assets Governmental Activities Business -Type Activities Totals 2013 2012 2013 2012 2013 2012 $3,747,184 $3,378,842 $5,653 $5,653 $3,752,837 $3,384,495 505,717 874,059 - - 505,717 - 9,836,936 9,836,936 3,883,283 3,883,283 13,720,219 13,720,219 3,645,444 3,528,235 1,441,075 1,441,075 5,086,519 4,969,310 - - 26,022 26,022 26,022 26,022 31,441,542 29,257,164 8,145,639 6,797,401 39,587,181 36,054,565 428,469 428,469 - - 428,469 428,469 2,063,842 1,488,329 - - 2,063,842 - (15,510,352) (13,782,625) (6,410,371) (6,085,051) (21,920,723) (19,867,676) 1,716,674 4,226,741 1,716,674 4,226,741 $37,875,456 $39,236,150 $7,091,301 $6,068,383 $44,966,757 $42.942,145 Additional information on the City of St. Anthony, Minnesota's capital assets can be found in Note 5. Long-term debt. At the end of the current fiscal year, the City of St. Anthony, Minnesota had total debt outstanding of $34,560,000. Of this amount, $24,280,000 comprises debt backed by the full faith and credit of the City, $1,735,000 is backed by tax increments, $8,545,000 is backed by revenues sources from the City of St. Anthony, Minnesota's enterprise funds. The remainder of the City of St. Anthony, Minnesota's debt represents the liability for compensated absences. 24 City of St. Anthony, Minnesota's Outstanding Debt General Obligation and Revenue Bonds Governmental Activities Business -Type Activities Totals 2013 2012 2013 2012 2013 2012 General obligation bonds $24,280,000 $26,390,000 $ - $ - $24,280,000 $26,390,000 G.O. revenue bonds 295,000 430,000 1,440,000 1,545,000 1,735,000 1,975,000 Revenue bonds 8,545,000 8,770,000 - - 8,545,000 8,770,000 Issuance premiums (discounts) 375,799 391,471 45,456 - 421,255 391,471 Compensated absences 650,208 649,849 143,548 133,308 793,756 783,157 Total $34,146,007 $36.631,320 $1,629,004 $1,678,308 $35,775,011 $38,309,628 The City of St. Anthony's total bonded debt decreased $2,575,000 (6.9%) during the current fiscal year. The key factors in this increase were; 1) payoff of 2006A G.O. Improvement bonds totaling $2,120,000; 2) principal retirement of $2,125,000; 3) issuance of the 2013A $1,775,000 G.O. Improvement bonds; 4) the payoff and refunding of Water Sewer Revenue bonds for a net reduction in debt of $105,000. The City of St. Anthony, Minnesota maintains an "AA" rating from Standard and Poor'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 $20,237210, which is in excess of the City of St. Anthony, Minnesota's $10,700,000 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 6. Economic Factors and Next Year's Budgets and Rates • Healthy financial profile with a stable outlook including a very strong general fund balance. • Strong income and wealth indicators relative to national levels. • The stable outlook reflects expectations that St. Anthony will continue to maintain balanced operations. • Good management practices, including extensive financial planning to maintain 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 2014 fiscal year. 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. 25 - This page intentionally left blank - 26 BASIC FINANCIAL STATEMENTS - This page intentionally left blank - 28 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF NET POSITION December 31, 2013 With Comparative Totals For December 31, 2012 Statement 1 Liabilities: 14,322,013 5,605,845 Primary Government 19,706,357 Restricted for: Governmental Business -Type Totals 651,511 468,784 Activities Activities 2013 2012 Assets: Deposits payable 341,000 84,550 425,550 Cash and investments $9,331,784 $4,538,842 $13,870,626 $11,823,980 Funds held in trust 1,392,296 181,734 1,392,296 3,850,936 Accrued interest 17,584 461,460 17,584 10,233 Due from other governmental units 662,976 - 662,976 68,573 Internal balances (1,026,721) 1,026,721 - - Accounts receivable - net 127,997 457,845 585,842 598,217 Prepaid items 43,152 22,976 66,128 107,102 Property taxes receivable 217,312 - 217,312 146,886 Special assessments receivable 1,758,676 3,781,048 1,758,676 1,765,976 Funds held for others 61,049 - 61,049 70,925 Inventories - at cost 30,946 797,400 828,346 832,494 Land held for resale - - - 600,000 Capital assets - net: Total liabilities 36,145,348 2,364,173 38,509,521 Nondepreciable 5,463,858 5,653 5,469,511 7,611,236 Depreciable 32,411,598 7,085,648 39,497,246 37,693,297 Total assets 50,492,507 13,935,085 64,427,592 65,179,855 Liabilities: 14,322,013 5,605,845 19,927,858 19,706,357 Restricted for: Accounts payable 497,749 153,762 651,511 468,784 Contracts payable 77,447 - 77,447 414,600 Deposits payable 341,000 84,550 425,550 90,863 Due to other governmental units 84,812 363,687 448,499 130,212 Salaries payable 181,734 59,739 241,473 196,550 Accrued interest payable 461,460 12,000 473,460 521,254 Compensated absences payable: Due within one year 197,087 43,533 240,620 269,268 Due in more than one year 453,121 100,015 553,136 513,889 Bonds and notes payable (net of unamortized premiums and discounts): Due within one year 3,781,048 114,508 3,895,556 5,845,971 Due in more than one year 29,714,751 1,370,948 31,085,699 31,680,500 Other post employment benefits: Due in more than one year 355,139 61,431 416,570 331,640 Total liabilities 36,145,348 2,364,173 38,509,521 40,463,531 Net position Net investments in capital assets 14,322,013 5,605,845 19,927,858 19,706,357 Restricted for: Debt service 5,242,895 - 5,242,895 4,741,115 Public safety 21,528 - 21,528 21,521 Unrestricted (5,239,277) 5,965,067 725,790 247,331 Total net position $14,347,159 $11,570,912 $25,918,071 $24,716,324 The accompanying notes are an integral part of these financial statements. 29 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF ACTIVITIES For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 Functions/Programs Primary government: Governmental activities: General government Public safety Public works Parks and recreation Housing and redevelopment Interest on long-term debt Total governmental activities Business -type activities: Liquor Water Water Filtration and Purification Sewer Total business -type activities Total primary government Expenses $1,029,147 4,488,023 2,565,860 569,254 565,303 1,217,646 10,435,233 Program Revenues Charges For Services $421,145 1,342,930 340,946 403,089 2,508,110 6,479,809 6,908,143 826,112 933,051 124,505 - 1,052,421 947,632 8,482,847 8,788,826 $18,918,080 $11,296,936 The accompanying notes are an integral part of these financial statements. 30 Program Revenues Operating Capital Grants and Grants and Governmental Contributions Contributions Activities Net (Expense) Revenue and Changes in Net Position Primary Government Business -Type Totals Activities 2013 Statement 2 2012 $17,340 $ ($590,662) $ - ($590,662) ($928,067) 380,196 (2,764,897) - (2,764,897) (2,404,907) 184,814 780,072 (1,260,028) - (1,260,028) (672,342) - - (166,165) - (166,165) (94,286) - (565,303) - (565,303) (649,104) 3,600 (1,214,046) (1,214,046) (1,191,523) 585,950 780,072 (6,561,101) 0 (6,561,101) (5,940,229) - - 428,334 428,334 520,406 106,939 106,939 56,092 (124,505) (124,505) (114,337) (104,789) (104,789) (163,291) 0 0 0 305,979 305,979 298,870 $585,950 $780,072 (6,561,101) 305,979 (6,255,122) (5,641,359) General revenues: General property taxes 5,703,707 5,703,707 5,408,188 Tax increment taxes 1,405,872 1,405,872 1,335,674 Grants and contributions not restricted to specific programs 26,384 - 26,384 10,639 Unrestricted investment earnings 24,173 51,593 75,766 178,039 Gain on sale of capital assets - - - 46,195 Other 389,785 66,478 456,263 226,094 Transfers (809,238) 809,238 Total general revenues and transfers 6,740,683 927,309 7,667,992 7,204,829 Change in net position 179,582 1,233,288 1,412,870 1,563,470 Net position - January 1, as previously reported 14,378,700 10,337,624 24,716,324 23,665,941 Prior period adjustment (211,123) (211,123) (513,087) Net position - January 1, as restated 14,167,577 10,337,624 24,505,201 23,152,854 Net position - December 31 $14,347,159 $11,570,912 $25,918,071 $24,716,324 The accompanying notes are an integral part of these financial statements. 31 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET GOVERNMENTALFUNDS December 31, 2013 With Comparative Totals For December 31, 2012 Assets Cash and investments Funds held in trust Accrued interest Due from other governmental units Interfund receivable Accounts receivable - net Prepaid items Property taxes receivable: Delinquent Due from county Special assessments receivable Funds held by others Inventories Land held for resale Total assets Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable Contracts payable Interfund payable Deposits payable Interfund loan payable Due to other governmental units Salaries payable Total liabilities Deferred inflows of resources: Unavailable revenue Total deferred inflows of resources Fund balance (deficit): Nonspendable Restricted Committed Assigned Unassigned Total fund balance (deficit) Total liabilities, deferred inflows of resources, and fund balance (deficit) $1,691,609 HRA Debt $588,736 $157,846 Street Service Street General Fund Improvement Debt 325/311/312/335/ Improvement 101/900 Service 345/503 336 Projects 504/340 Assets Cash and investments Funds held in trust Accrued interest Due from other governmental units Interfund receivable Accounts receivable - net Prepaid items Property taxes receivable: Delinquent Due from county Special assessments receivable Funds held by others Inventories Land held for resale Total assets Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable Contracts payable Interfund payable Deposits payable Interfund loan payable Due to other governmental units Salaries payable Total liabilities Deferred inflows of resources: Unavailable revenue Total deferred inflows of resources Fund balance (deficit): Nonspendable Restricted Committed Assigned Unassigned Total fund balance (deficit) Total liabilities, deferred inflows of resources, and fund balance (deficit) $1,691,609 $1,442,332 $588,736 $157,846 - 1,392,296 - - 15,149 2,019 - - 173,907 - - - 504,259 - - - 28,738 - - - 43,103 - - - 70,294 17,497 8,049 - 28,758 9,503 3,311 - 30 767,315 - - 30,946 $2,586,793 $3,630,962 $600,096 $157,846 $107,127 2,000 5,575 81,163 177,639 367,929 0 0 5,575 70,325 784,812 8,049 70,325 784,812 8,049 0 74,049 - - - 2,846,150 592,047 - - - - 152,271 2,074,490 - 2,148,539 2,846,150 592,047 152,271 $2,586,793 $3,630,962 $600,096 $157,846 The accompanying notes are an integral part of these financial statements. 32 Statement 3 HRA Projects 319/320/321/326/330 2012 Street Improvement Project Fund 517 2013 Street Improvement Project Fund 519 2014 Street Improvement Project Fund 521 Other Governmental Funds Intra -Activity, Eliminations Total Governmental Funds 414,600 121,453 41,090 - 64,508 244,677 (471,728) - - - - 2013 2012 $1,757,602 $513 $358,025 $ - $3,335,121 $ - $9,331,784 $8,692,417 - - - - - - 1,392,296 3,850,936 - - - - 416 - 17,584 4,155 - 53,238 - - 435,831 - 662,976 68,568 - - - - - (471,728) 32,531 - - - - - 99,259 - 127,997 137,609 - - - - 49 - 43,152 68,610 40,539 - - - 21,196 - 157,575 103,414 8,114 - - - 10,051 - 59,737 43,472 - - - - 991,331 - 1,758,676 1,765,976 61,049 - - - - - 61,049 70,925 - - - - - - 30,946 - 600,000 $1,867,304 $53,751 $358,025 $0 $4,893,254 ($471,728) $13,676,303 $15,406,082 $208,367 $ - $13,180 $74,159 $94,916 $ - $497,749 $143,668 - - 55,764 - 21,683 - 77,447 414,600 121,453 41,090 - 64,508 244,677 (471,728) - - - - - - 339,000 - 341,000 2,483 959,326 - - - 61,820 - 1,026,721 2,124,750 2,824 - - - 825 - 84,812 47,951 - 4,095 181,734 144,110 1,291,970 41,090 68,944 138,667 767,016 (471,728) 2,209,463 2,877,562 40,539 1,012,528 1,916,253 1,865,486 40,539 0 0 0 1,012,528 0 1,916,253 1,865,486 - - - - 49 - 74,098 68,610 1,831,915 - - - 2,002,737 - 7,272,849 8,594,337 61,049 - - - 33,015 - 94,064 222,184 - 12,661 289,081 - 1,253,470 - 1,707,483 1,344,529 (1,358,169) (138,667) (175,561) 402,093 433,374 534,795 12,661 289,081 (138,667) 3,113,710 0 9,550,587 10,663,034 $1,867,304 $53.751 $358,025 $0 $4,893,254 ($471,728) $13.676,303 $15,406,082 Fund balance reported above $9,550,587 $10,663,034 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources, and therefore, are not reported in the funds. 37,875,456 39,236,150 Other long-term assets are not available to pay for curtent-period expenditures and, therefore, are reported as unavailable in the funds. 1,916,253 1,865,486 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. (34,312,398) (36,758,007) 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 position. (682,739) (627,963) Net position of governmental activities $14,347,159 $14,378,700 The accompanying notes are an integral part of these financial statements. 33 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTALFUNDS For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 Street The accompanying notes are an integral part of these financial statements. 34 Improvement Street General Fond Debt Service HRA Debt Service Improvement 101/900 345/503 325/311/312/335/336 Projects 504/340 Revenues: General property taxes $3,381,333 $814,971 $374,868 $ - Tax increment collections - _ - Licenses, fees and permits 342,390 - - - Intergovernmental 539,354 - - - Special assessments - 304,496 - - Chargesforservices 1,442,252 - Cable franchise fees 104,089 - - - Fines and forfeits 118,253 - - - Investment income (7,315) 2,835 (3,546 (1,703) Contributions and donations 2,700 - - - Refunds and reimbursement 21,183 - - - Miscellaneous 46,732 118,196 Total revenues 5,990,971 1,122,302 371,322 116,493 Expenditures: Current: General government 745,428 - - - Public safety 4,163,571 - - - Public works 913,593 - - - Parks and recreation 216,553 - - - Nondepartmental 56,117 - - - Housing and redevelopment _ Capital outlay: General government 8,157 _ - - Public safety _ - - _ Public works - _ Debt service: Principal - 2,780,000 710,000 - Interest - 261,449 560,797 27,287 Paying agent fees - 4,738 7,535 - Professional service - 3,979 - - Issuance costs - Construction/acquisition costs - - _ Developer incentives Total expenditures 6,103,419 3,050,166 1,278,332 27,287 Revenues over (under) expenditures (112,448) (1,927,864) (907,010) 89,206 Other financing sources (uses): Bonds issued Refunding bonds issued Payment to refunded bond escrow agent Premium on debt issued _ _ _ - Sale of capital assets - _ _ Transfers in 380,800 193,545 876,446 - Transfers out (95,150) (193,545) Total other financing sources (uses) 285,650 193,545 876,446 (193,545) Net change in fund balance 173,202 (1,734,319) (30,564) (104,339) Fund balance (deficit) - January 1 1,975,337 4,580,469 622,611 256,610 Prior period adjustment Fund balance (deficit) - January 1, as restated 1,975,337 4,580,469 622,611 256,610 Fund balance (deficit) - December 31 $2,148,539 $2,846,150 $592,047 $152,271 The accompanying notes are an integral part of these financial statements. 34 Statement 4 HRA Projects 319/320/321/326/330 2012 Street Improvement Project Fund 517 2013 Street Improvement Project Fund 519 2014 Street Improvement Project Fund 521 Other Governmental Intra -Activity Funds Eliminations Total Governmental Funds - - - - 129,283 - 1,042,876 818,851 - - - - 204,273 - 420,826 2013 2012 $ - $ - $ - $ - $1,086,244 $ - $5,657,416 $5,416,328 1,398,000 - - - - - 1,398,000 1,364,881 _ _ _ _ - - 342,390 290,985 - 53,238 - - 199,885 - 792,477 1,530,983 - - 75,840 - 206,855 - 587,191 427,467 - - - - 490,016 - 1,932,268 1,736,274 (38,387) (1,313,027) (138,667) 159,588 0 (3,282,64L) - - 104,089 101,403 _ _ _ - 11,110 - 129,363 130,560 43,502 (495) (3,426) - (5,655) - 24,197 55,201 - - - - 13,434 - 16,134 2,778 - 16,103 - 37,286 83,408 173,505 338,433 110,644 1,441,502 52,743 72,414 0 2,191,497 0 11,359,244 11,250,912 16,274 - - - 74,488 - 836,190 1,059,361 - - - - 11,183 - 4,174,754 3,711,394 - - - - 129,283 - 1,042,876 818,851 - - - - 204,273 - 420,826 344,702 _ _ _ _ - - 56,117 160,513 14,463 - - - 135,607 - 150,070 240,097 _ _ _ - - - 8,157 46,588 - - - - 5,792 - 5,792 130,000 270,443 - 270,443 170,056 - - - - 755,000 - 4,245,000 4,255,000 89,571 - - - 369,240 - 1,308,344 1,299,266 - - - - 4,114 - 16,387 18,811 _ - - - 2,703 - 6,682 3,480 - - 66,035 - - - 66,035 132,217 - 91,130 1,319,406 138,667 69,783 - 1,618,986 2,253,448 415,233 0 10,451,911 8,174,103 - 415,233 409,007 535,541 91,130 1,385,441 138,667 2,031,909 0 14,641,892 15,052,791 905,961 (38,387) (1,313,027) (138,667) 159,588 0 (3,282,64L) (3,801,879) 1,752,943 - 22,057 - 1,775,000 2,195,000 - - - 7,300,000 - (4,015,373) 42,080 - - - 42,080 190,221 - - (876,446) - - - - - - 25,244 571,122 (317,772) - (1,482,913) 1,482,913 25,244 539,000 - 10,962 610,000 - (876,446) 0 1,795,023 0 300,651 0 2,381,324 6,290,810 29,515 (38,387) 481,996 (138,667) 460,239 0 (901,324) 2,488,931 716,403 (211,123) 51,048 (192,915) - 2,653,471 - - 10,663,034 (211,123) 8,305,131 (131,028) 505,280 51,048 (192,915) 0 2,653,471 0 10,451,911 8,174,103 $534,795 $12,661 $289,081 ($138,667) $3,113,710 $0 $9,550,587 $10,663,034 The accompanying notes are an integral part of these financial statements. 35 w 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, 2013 With Comparative Amounts For The Year Ended December 31, 2012 Statement 5 2013 2012 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) ($901,324) $2,488,931 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. 45,991 746,019 The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins and donations) is to decrease net position, as follows: (58,447) (1,314) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 50,767 26,183 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 position. This amount is the net effect of these differences in the treatment of long-term debt and related items. 2,354,911 (1,628,707) 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. 90,698 102,192 Transfer out of governmental capital assets contributed to Enterprise Funds (1,348,238) 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. (54,776) 894 Change in net position of governmental activities (statement 2) $179,582 $1,734,198 The accompanying notes are an integral part of these financial statements. 36 L CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2013 With Comparatvie Totals For December 31, 2012 Statement 6 Governmental Business -Type Activities Enterprise Funds Activities - 701/704 Water Internal Service Liquor 705 and Sewer Totals Fund Assets: 2013 2012 Current assets: Cash and cash equivalents $401,808 $4,137,034 $4,538,842 $3,109,677 $ - Due from other governmental units - - - 5 - Interfund loan receivable - current portion - 131,195 131,195 1,177,001 - Receivables: Interest - - - 6,078 - Accounts - 457,845 457,845 460,608 - Prepaid items 7,761 15,215 22,976 38,492 - Inventories - at cost 797,400 - 797,400 832,494 - Total current assets 1,206,969 4,741,289 5,948,258 5,624,355 0 Noncurrent assets: Interfund loan receivable - noncurrent portion - 895,526 895,526 1,020,749 - Capital assets: Land - 5,653 5,653 5,653 - Buildings and structures 1,875,328 2,007,955 3,883,283 3,883,283 - Fumiture, fixtures and equipment 411,200 1,029,875 1,441,075 1,441,075 - Distribution and collection system - 8,145,639 8,145,639 6,797,401 - Software intangibles 26,022 - 26,022 26,022 - Total capital assets 2,312,550 11,189,122 13,501,672 12,153,434 0 Less: Allowance for depreciation (957,405) (5,452,966) (6,410,371) (6,085,051) Net capital assets 1,355,145 5,736,156 7,091,301 6,068,383 0 Total noncurrent assets 1,355,145 6,631,682 7,986,827 7,089,132 0 Total assets 2,562,114 11,372,971 13,935,085 12,713,487 0 Liabilities: Current liabilities: Accounts payable 130,637 23,125 153,762 325,116 - Interfund payable - - - - 32,531 Due to other governmental units 74,710 288,977 363,687 82,261 - Salaries payable 31,284 28,455 59,739 52,440 - Accrued interest payable - 12,000 12,000 26,848 - Refundable deposits - 84,550 84,550 88,380 - Compensated absences payable - current portion 16,582 26,951 43,533 55,874 197,087 Bonds and notes payable - current portion - 114,508 114,508 1,545,000 - Interfund loan payable - current portion - - 36,500 - Total current liabilities 253,213 578,566 831,779 2,212,419 229,618 Noncurrent liabilities: Compensated absences payable - noncurrent portion 38,060 61,955 100,015 77,434 453,121 Bonds and notes payable - noncurrent portion - 1,370,948 1,370,948 - - Interfund loan payable - noncurrent portion - - - 36,500 - Other post employement benefits 32,102 29,329 61,431 49,510 - Totalnoncurrentliabilities 70,162 1,462,232 1,532,394 163,444 453,121 Total liabilities 323,375 2,040,798 2,364,173 2,375,863 682,739 Net position: Net investments in capital assets 1,355,145 4,250,700 5,605,845 4,523,383 - Unrestricted 883,594 5,081,473 5,965,067 5,814,241 (682,739) Total net position $2,238,739 $9,332,173 $11,570,912 $10,337,624 ($682,739) The accompanying notes are an integral part of these financial statements. 37 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND Statement 7 CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For The Year Ended December 31, 2013 With Comparatvie Totals For The Year Ended December 31, 2012 Governmental 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 Fees and cost of issuance Miscellaneous revenue Total nonoperating revenues (expenses) Income (loss) before capital contributions and transfers Capital contributions and transfers: Capital contributions Transfers out Change in net position Net position -January 1 Business -Type Activities Enterprise Funds Activities - 1,437,316 701/704 321,599 58,954 380,553 463,435 - Water and 136,476 174,583 Internal Liquor 705 Sewer Totals 580,277 - Service Fund 205,453 228,535 2013 2012 243,625 $6,908,143 $ $6,908,143 $7,139,381 $ (5,281,745) 428,334 (5,281,745) (5,403,321) 369,412 (54,752) 1,626,398 0 1,626,398 1,736,060 0 - 1,729,883 1,729,883 1,786,218 - 150,800 150,800 49,400 0 1,880,683 1,880,683 1,835,618 0 1,626,398 1,880,683 3,507,081 3,571,678 0 733,581 703,735 1,437,316 1,448,735 54,752 321,599 58,954 380,553 463,435 - 38,107 136,476 174,583 125,916 - - 588,795 588,795 580,277 - 23,082 205,453 228,535 245,054 - 81,695 243,625 325,320 338,849 - 1,198,064 1,937,038 3,135,102 3,202,266 54,752 428,334 (56,355) 371,979 369,412 (54,752) (1,676) 53,269 51,593 122,833 (24) (29,102) (29,102) (70,192) - (36,898) (36,898) (350) 63,738 2,740 66,478 17,569 62,062 (9,991) 52,071 69,860 (24) 490,396 (66,346) 424,050 439,272 (54,776) - 1,348,238 1,348,238 - (439,000) (100,000) (539,000) (610,000) 51,396 1,181,892 1,233,288 (170,728) (54,776) 2,187,343 8,150,281 10,337,624 10,409,882 (627,963) Prior period adjustment - - - 98,470 Net position - January 1, as restated 2,187,343 8,150,281 10,337,624 10,508,352 (627,963) Net position - December 31 $2,238,739 $9,332,173 $11,570,912 $10,337,624 ($682,739) 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, 2013 With Comparative Totals For The Year Ended December 31, 2012 Cash flows from operating activities: Receipts from customers and users Payment to suppliers Payment to employees Miscellaneous revenue Net cash flows provided by (used in) operating activities Cash flows from noncapital financing activities: Transfer to General Fund Transfer to Capital Project Funds Change in interfund receivable/payable Net cash flows provided by (used in) noncapital financing activities Cash flows from capital and related financing activities: Change in interfund loan receivable/payable Interest received on interfund receivable Proceeds from debt Issuance costs paid on debt Principal paid on debt Interest paid on debt Net cash flows provided by (used in) 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 - 701/704 Water and Internal Liquor 705 Sewer Totals Service Fund 2013 2012 $6,911,746 $1,879,843 $8,791,589 $8,954,810 $ (5,795,857) (701,502) (6,497,359) (6,939,216) - (714,411) (693,440) (1,407,851) (1,446,147) (54,393) 63,738 2,740 66,478 17,564 - 465,216 487,641 952,857 587.011 (54,393) (330,800) (50,000) (380,800) (355,800) (108,200) (50,000) (158,200) (254,200) 32,531 (439,000) (100,000) (539,000) (610,000) 32,531 (73,000) 1,171,029 1,098,029 (14,260) - 67,730 67,730 202,647 - 1,489,964 1,489,964 - - (36,898) (36,898) - - (1,545,000) (1,545,000) (95,000) - (48,458) (48,458) (71,948) (73,000) 1,098,367 1,025,367 21,439 (1,676) (8,383) (10,059) 58,072 (24) (48,460) 1,477,625 1,429,165 56,522 (21,886) 450,268 2,659,409 3,109,677 3,053,155 21,886 $401,808 $4,137,034 $4,538,842 $3,109,677 $0 $428,334 ($56,355) $371,979 $369,412 ($54,752) 63,738 2,740 66,478 17,569 81,695 243,625 325,320 338,849 3,603 (840) 2,763 (20,194) - 10,979 4,537 15,516 (9,581) - 35,094 - 35,094 (125,484) - (158,227) 293,934 135,707 16,440 359 36,882 543,996 580,878 217,599 359 $465,216 $487,641 $952,857 $587,011 ($54,393) Noncash investing, capital and financing activities: Water and Sewer System assets in the amount of $1,348,238 and $0 were contributed to the Water and Sewer Fund in 2013 and 2012, respectively. The accompanying notes are an integral part of these financial statements. L39 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUND -DEVELOPERS DEPOSIT December 31, 2013 With Comparative Totals For December 31, 2012 Assets: Cash and investments Accounts receivable - net Total assets Statement 9 2013 2012 ($7,234) 7,234 $0 Liabilities: Deposits payable $ $ The accompanying notes are an integral part of these financial statements. 40 ($1,546) 1,546 $0 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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 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 position and the statement of changes in net position) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent, on fees and charges for support. 41 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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 ofaccounting, 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. The City's only fiduciary fund is an agency fund. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Governmental fund financial statements are reported using the current financial resources measurementfocus and the modified accrual basis ofaccounting. 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 City 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 City. 42 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 The City 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 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 2012 Street Improvement Project Fund accounts for the construction costs associated with the reconstruction of Belden Drive and Coolidge Street between 34 1h and 36`" Avenues, 35" Avenue between Belden Drive and Harding Street and miscellaneous sanitary sewer and stormwater repairs. The 2013 Street Improvement Project Fund accounts for the construction costs associated with the reconstruction of Edward Street between 35th and 36th Avenues along with 36th Avenue between Roosevelt Street and Silver Lake Road. The 2014 Street Improvement Project Fund accounts for the construction costs associated with the reconstruction of Penrod Lane between 36t' and 37" Avenues, Chelmsford Road between 36`h and 36" Avenues, Edgmere Avenue between Penrod Lane and Chelmsford Road, and Wenhurst Avenue between Pernod Lane and Chelmsford Road. The City 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, and the operation and maintenance of the City's water purification plant. Additionally, the City reports the following fund types: Internal Service Fund - the Severance Fund accounts for the liability the City has for employee vacation and severance payments. Agency Fund - the Developer Deposits Fund accounts for costs incurred by the City for the review of various land use permits requested by developers and subsequent owners. The City requires the developer or owner to pay the costs associated with the permitting process. The City collects an initial deposit and bills any overages as needed. 43 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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. 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, 2013 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. 45 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 The following is a listing of the General Fund departments and Special Revenue Funds whose expenditures exceed budget appropriations: 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 interf ind 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, except for investments in 2a7 - like external investment pools, which are stated at amortized cost. 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. M Final Over Budget Actual Budget Major Fund: General Fund Public relations / cable $37,144 $42,631 $5,487 General management 87,868 121,749 33,881 Elections 23,504 23,635 131 Finance 228,660 245,127 16,467 Assessing 49,352 49,760 408 Planning and zoning 31,775 64,860 33,085 Police protection 2,925,096 2,993,251 68,155 Fire protection 907,996 940,362 32,366 Protective inspections 94,802 153,903 59,101 DARE program 12,319 12,935 616 Street maintenance 503,027 529,123 26,096 Equipment maintenance 312,299 340,247 27,948 Nondepartmental 40,300 56,117 15,817 Nonmajor Funds: Special Revenue Funds: Recycling Fund 22,317 25,359 3,042 Fire Education / Training Fund 4,900 5,872 972 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 interf ind 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, except for investments in 2a7 - like external investment pools, which are stated at amortized cost. 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. M CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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, 2013 are planned to be eliminated in 2014. 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 I). 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 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 inflow of resources because they are not available to finance current expenditures. 47 L CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 I. 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. 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 inflow of resources. J. INVENTORIES GOVERNMENTALFUNDS Inventories are valued at cost using the first-in/first-out (FIFO) method. The cost of such inventories are recorded as expenditures when consumed rather than when purchased. PROPRIETARY FUNDS Inventories of the Proprietary Funds are stated at weighted average cost, which approximates market, using the first -in, first -out (FIFO) method. K. PREPAID ITEMS Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as expenditures/expenses at the time of consumption. 48 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 L. CAPITAL ASSETS Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) and intangible assets such as easements and computer software, are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the City 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. 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, 2013, no interest was capitalized in connection with construction in progress. The City implemented GASB Statement No. 51, Accounting and Financial Reportingfor Intangible Assets effective January 1, 2010 which required the City to capitalize and amortize intangible assets. Pursuant to GASB Statement 51, in the case of initial capitalization of intangible assets, the City chose to include such items regardless of their acquisition date, except for permanent easements and internally generated software. The City has already accounted for computer software and temporary easements at historical cost and therefore retroactive reporting was not necessary. Property, plant and equipment of the primary government, as well as the component units, are depreciated/amortized using the straight-line method over the following estimated useful lives: Assets Buildings and structures 5 — 40 years Furniture, fixtures and equipment (including software) 3 — 20 years Distribution and collection systems 20 — 50 years Streets 20 — 50 years Storm sewers 25 years 49 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 M. 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. N. 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 position. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium discount. In the governmental fund financial statements, governmental funds recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. O. FUND BALANCE CLASSIFICATIONS In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable - consists of amounts that are not in spendable form, such as prepaid items Restricted - consists of amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Committed - consists of internally imposed constraints. These constraints are established by resolution of the City Council. Assigned - consists of internally imposed constraints. These constraints reflect the specific purpose for which it is the City's intended use. These constraints are established by the City Council and/or management. Pursuant to City Council policy, the City's Finance Director and/or City Manager are authorized to establish assignments of fund balance. Unassigned - is the residual classification for the general fund and also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City's policy to fust use restricted resources, and then use unrestricted resources as they are needed. 50 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 When committed, assigned or unassigned resources are available for use, it is the City's policy to use resources in the following order; 1) committed 2) assigned and 3) unassigned. P. INTERFUND TRANSACTIONS Interf ind 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. Q. USE OF ESTIMATES The preparation of financial statements in accordance with generally accepted accounting principles (GAAP) requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. R. RECLASSIFICATIONS Certain amounts presented in the prior year data has been reclassified in order to be consistent with the current year's presentation. S. COMPARATIVE TOTALS The basic financial statements, required supplementary information, combining and individual fund financial statements and schedules and supplementary financial information include certain prior -year summarized comparative information in total but not at the level of detail required for presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the City's financial statements for the year ended December 31, 2012, from which the summarized information was derived. T. DEFERRED OUTFLOWSANFLOWS OF RESOURCES In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred ouij7ows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government has no items that qualify for reporting in this category. 51 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has one type of item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental fund balance sheet. The governmental funds report unavailable revenues from the following sources: property taxes, special assessments, and tax increment. U. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS 1. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET AND THE GOVERNMENT -WIDE STATEMENT OF NET POSITION The governmental fund balance sheet includes a reconciliation between fund balance — total governmental funds and net position —governmental activities as reported in the government -wide statement of net position. One element of that reconciliation explains that "long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds". The details of this ($34,312,398) difference is as follows: Bonds payable ($33,120,000) Accrued interest payable (461,460) Unamortized bond discounts 2,297 Unamortized bond premium (378,096) Other post -employment benefits (355,139) Net adjustment to reduce fund balance - total governmental funds to arrive at net position - governmental activities. ($34,312,398) 52 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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 position 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 $45,991 difference is as follows: Capital outlay $284,392 Construction/acquisition costs 1,618,986 Current expenditures capitalized 13,390 Capital outlay not capitalized (20,924) Depreciation expense (1,849,853) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. $45,991 Another element of that reconciliation states that "the net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins, and donations) is to decrease net position." The details of this ($58,447) difference are as follows: The statement of activities reports losses arising from the trade-in or disposal of existing capital assets to acquire new capital assets. Conversely, governmental funds do not report any gain or loss on a trade-in of capital assets. Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. 53 ($58,447) ($58,447) CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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 $50,767 difference is as follows: Unavailable revenue - general property taxes: At December 31, 2012 ($70,747) At December 31, 2013 117,036 Unavailable revenue - tax increment taxes: At December 31, 2012 (32,667) At December 31, 2013 40,539 Unavailable revenue - special assessments: At December 31, 2012 (1,762,072) At December 31, 2013 1,758,678 Net adjustments to decrease net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. $50,767 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 position. The details of this $2,354,911 difference is as follows: Debt issued or incurred: Issuance of general obligation bonds ($1,775,000) Premium on issued bonds (42,080) Principal repayments 4,245,000 Other post employment benefits (73,009) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. $2,354,911 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 $90,698 difference is as follows: Amortization of premiums, discounts 57,752 Accrued interest 32,946 Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. $90,698 54 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 2 DEPOSITS AND INVESTMENTS A. DEPOSITS In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The 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; 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, 2013, the bank balance of the City's deposits was covered by federal depository insurance. 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. 55 L- CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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) State and local securities 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. 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. 56 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 g) General obligation temporary bonds of the same governmental entity issued under section 429.091, subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6. As of December 31, 2013, the City had the following investments and maturities: NR - Not Rated Total investments $15,250,488 Petty cash 5,200 Tom) cash and investments $15,255,688 Following is a reconciliation of the City's cash and investment balances as of December 31, 2013: Cash and investments $13,870,626 Cash and investments - fiduciary fund ($7,234) Funds held in trust 1,392,296 $15,255,688 C. INVESTMENT RISKS Custodial credit risk — investments — For investments in securities, custodial credit risk is the risk that in the event of failure of the counterparty to a transaction, the City will not be able to recover the value of its investment securities that are in the possession of an outside party. Investments in investment pools and money markets are not evidenced by securities that exist in physical or book entry form, and therefore are not subject to custodial credit risk disclosures. The City's investment policy does not address custodial risk. However, investments in securities are held by the City's broker-dealers of which $500,000 is insured through SIPC. The broker-dealer has provided additional protection by providing additional insurance. This insurance is subject to aggregate limits applied to all of the broker-dealers' accounts. Interest rate risk — Interest rate risk is the risk that changes in interest rates of debt investments could adversely affect the fair value of an investment. The City's investment policy requires the City to diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of assets in a specific maturity. The policy also states the City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. 57 L_ Investment Maturities (in Years) Fair Less Over Investment Type Rating Value Than 1 1-5 6-10 10 Years Federal Home Loan Mortgage Corp. AAA $1,177,274 $1,177,274 $ - $ - $ - REMIC NR 158,190 - - 843 157,347 Money market NR 2,518,142 2,518,142 - - - External investment pool - 4M Fund NR 5,676,540 5,676,540 - - Local governments AA -AAA 690,659 - 410,351 280,308 - Brokeredcertificatesofdeposit NR 3,637,387 404,351 2,122,411 1,110,625 - US Treasury State and Local Government (SLGS) NR 1,392,296 1,392,296 - - Total $15,250,488 $11,168,603 $2,532,762 $1,391776 $157,347 NR - Not Rated Total investments $15,250,488 Petty cash 5,200 Tom) cash and investments $15,255,688 Following is a reconciliation of the City's cash and investment balances as of December 31, 2013: Cash and investments $13,870,626 Cash and investments - fiduciary fund ($7,234) Funds held in trust 1,392,296 $15,255,688 C. INVESTMENT RISKS Custodial credit risk — investments — For investments in securities, custodial credit risk is the risk that in the event of failure of the counterparty to a transaction, the City will not be able to recover the value of its investment securities that are in the possession of an outside party. Investments in investment pools and money markets are not evidenced by securities that exist in physical or book entry form, and therefore are not subject to custodial credit risk disclosures. The City's investment policy does not address custodial risk. However, investments in securities are held by the City's broker-dealers of which $500,000 is insured through SIPC. The broker-dealer has provided additional protection by providing additional insurance. This insurance is subject to aggregate limits applied to all of the broker-dealers' accounts. Interest rate risk — Interest rate risk is the risk that changes in interest rates of debt investments could adversely affect the fair value of an investment. The City's investment policy requires the City to diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of assets in a specific maturity. The policy also states the City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. 57 L_ CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Credit Risk — Credit risk is the risk that an issuer or other counterparty to an investment will be unable to fulfill its obligation to the holder of the investment. State law limits investments in commercial paper to those rated in the highest quality category by at least two nationally recognized rating agencies; in any security of the State of Minnesota or any of its municipalities which is rated "A" or better by a national bond rating service for general obligation and rated "AA" or better for a revenue obligation; a general obligation of the Minnesota Housing Finance Agency to those rated "A" or better by a national bond rating agency; mutual funds or money market funds whose investments are restricted to securities described in MS I I8A.04. The City's investment policy does not place further restrictions on investment options. Concentration of credit risk — Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government's investment in a single issuer. The City places no limit on the amount the City may invest in any one issuer. More than 5% of the City's investments are in various holdings as follows: Federal Home Loan Bank 7.72% Note 3 RECEIVABLES Significant receivables balances not expected to be collected within one year of December 31, 2013 are as follows: Major Funds 58 Street Improvement HRA HRA Nonmajor General Debt Service Debt Service Projects Funds Total Special assessments receivable $ - $666,000 $ - $ - $911,000 $1,577,000 Delinquent property taxes 31,900 7,900 3,700 - 9,600 53,100 Delinquent Tax Increment - - - 35,000 - 35,000 $31,900 $673,900 $3,700 $35,000 $920,600 $1,665,100 58 r CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 4 UNAVAILABLE REVENUES Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the various components of unavailable revenue reported in the governmental funds were as follows: Property Special Taxes Assessments TIF Total Major Fund: General Fund $70,294 $31 $ - $70,325 Street Improvement Debt Service 17,497 767,315 - 784,812 HRA Debt Service 8,049 - - 8,049 HRA Projects Fund - 40,539 40,539 Nonmajor Funds 21,196 991,332 1,012,528 Total unavailale revenue $117,036 $1,758,678 $40,539 $1,916,253 59 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 5 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2013 was as follows: Less accumulated depreciation/amortization for Buildings and improvements Beginning 295,588 - - 3,455,885 Ending Primary Government Balance Increases Decreases Transfers Balance Governmental activities: (122,126) - 2,412,971 Streets 7,987,235 1,171,124 Capital assets, not being depreciated: 9,158,359 Storm sewers 70,438 17,139 - - Land $3,378,842 $ - $ - $368,342 $3,747,184 Construction in progress 4,226,741 1,618,986 (2,780,815) (1,348,238) 1,716,674 Total capital assets, not being depreciated 7,605,583 1,618,986 (2,780,815) (979,896) 5,463,858 Capital assets, being depreciated: ($2,839,262)($1,348,238) $37,875,456 Buildings and improvements 9,836,936 - - - 9,836,936 Land improvement 874,059 - - (368,342) 505,717 Furniture, fixtures and equipment (including software) 3,528,235 297,782 (180,573) - 3,645,444 Streets 29,257,164 2,184,378 - - 31,441,542 Storm sewers 428,469 - - - 428,469 Storm water 1,488,329 575,513 2,063,842 Total capital assets, being depreciated 45,413,192 3,057,673 (180,573) (368,342) 47,921,950 Less accumulated depreciation/amortization for Buildings and improvements 3,160,297 295,588 - - 3,455,885 Land improvement 107,342 43,925 - - 151,267 Furniture, fixtures and equipment 2,273,719 261,378 (122,126) - 2,412,971 Streets 7,987,235 1,171,124 - - 9,158,359 Storm sewers 70,438 17,139 - - 87,577 Storm water 183,594 60,699 - 244,293 Total accumulated depreciation/amortization 13,782,625 1,849,853 (122,126) 0 15,510,352 Total capital assets being depreciated - net 31,630,567 1,207,820 (58,447) (368,342) 32,411,598 Governmental activities capital assets - net $39,236,150 $2,826,806 ($2,839,262)($1,348,238) $37,875,456 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Primary Government Business -type activities: Capital assets, not being depreciated: Land Capital assets, being depreciated: Buildings and structures Furniture, fixtures and equipment Software and intangibles Distribution and collection system Total capital assets, being depreciated Less accumulated depreciation for: Buildings and structures Furniture, fixtures and equipment Software and intangibles Distribution and collection system Total accumulated depreciation Total capital assets being depreciated - net Business -type activities capital assets - net Beginning Ending Balance Increases Decrease Transfers Balance $5,653 $ - $ $ - $5,653 3,883,283 - - - 3,883,283 1,441,075 - - - 1,441,075 26,022 - - - 26,022 6,797,401 - 1,348,238 8,145,639 12,147,781 0 0 1,348,238 13,496,019 1,775,910 97,203 - - 1,873,113 676,177 56,463 - - 732,640 10,843 5,204 - - 16,047 3,622,121 166,450 3,788,571 6,085,051 325,320 0 0 6,410,371 6,062,730 (325,320) 0 1,348,238 7,085,648 $6,068,383($325,320) $0 $1,348,238 $7,091,301 Depreciation/amortization expense was charged to functions/programs of the primary government as follows: Governmental activities: General government Public safety Public works, including depreciation of general infrastructure assets Parks and recreation Total depreciation/amortization expense - governmental activities Business -type activities: Liquor Water Sewer Total depreciation/amortization expense - business -type activities Total depreciation expense 61 $106,555 194,748 1,400,122 148,428 1,849,853 81,695 161,939 81,686 325,320 $2,175,173 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 CONSTRUCTION COMMITMENTS At December 31, 2013, 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 2013 Street Improvements $1,318,388 $203,109 Silver Lake SW Treatment 432,364 432,364 $635,473 Note 6 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, 2013. 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. 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. 62 r CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 GOVERNMENTAL ACTIVITIES As of December 31, 2013, the long-term debt of the financial reporting entity consisted of the following: Final Interest Issue Maturity Original Payable Rates Date Date Issue 12/31/13 G.O. Improvement Bonds: G.O. Improvement Bonds, Series 2007A 3.50-4.10% 4242007 2/12014 2,050,000 1,500,000 G.O. Improvement Bonds, Series 2009A 3.004.00% 5/72009 2/12025 2,630,000 2,205,000 G.O. Improvement Refunding Bonds, Series 2009B 2.50-3.00% 12/162009 2/12018 1,335,000 820,000 G.O. Improvement Bonds, Series 2010A 2.25-3.625% 5/202010 2/12026 1,375,000 1,225,000 G.O. Improvement Bonds, Series 2011A 3.00-4.00% 4/122011 2/12027 2,955,000 2,620,000 G.O. Improvement Refunding Bonds, Series 20116 0.40-2.00% 12292011 2/12021 2,210,000 1,960,000 G.O. Improvement Bonds, Series 2013B 0.45-2.625% 423/2013 2/1/2029 1,775,000 1,775,000 Total improvement bonds 14,330,000 12,105,000 G.O. Street Reconstruction Bonds: G.O. Street Reconstruction Bonds, Series 2008A 3.00-4.00% 6/52008 2/12024 1,910,000 1,500,000 Tax Increment Revenue Bonds: Tax Increment Revenue Bonds, Series 2006B 5.00-5.62% 8/12006 8/12031 4,975,000 4,380,000 Tax Increment Revenue Bonds, Series 2007 4.30-5.00% 4/172007 2/12031 4,640,000 4,165,000 Total tax increment revenue bonds 9.615,000 8,545,000 " G.O. Revenue Bonds: G.O. Storm Sewer Refunding Revenue Bonds, Series 2009A 3.00-4.00% 5/72009 2/12015 825,000 295,000 G.O. Tax Abatement Bonds: G.O. Tax Abatement Bonds, Series 2009A 3.00-4-00% 5/72009 2/12025 1,335,000 1,190,000 G.O. Tax Abatement Refunding Bonds, Series 2009E 2.50-3.00% 12/10/2009 2/12016 310,000 165,000 Total tax abatement bonds 1,645,000 1,355,000 G.O. State Aid Bonds G. O. State Aid Street Refunding Bonds, Series 2009A 3.00-4.00% 5/72009 2/12015 385,000 120,000 G.O. Bonds: G.O. Refunding Bonds, Series 2012A 2.00-2.75% 4252012 2/12028 9,495,000 9,200,000 Issuance premiums (discounts) N/A 375,799 Total- bonded indebtedness 38,205,000 33,495,799 Compensated absences payable - 650,208 Total City indebtedness- govemmental activities $38,205,000 $34,146,007 L L 63 11 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31. 2013 BUSINESS -TYPE ACTIVITIES Revenue Bonds: G.O. Water and Sewer Revenue Refunding Bonds, Series 2013A Issuance premiums (discounts) Total- bonded indebtedness Compensated absences Total City indebtedness - business -type activities Total City indebtedness Final $2,390,000 $301,813 $145,000 Interest Maturity Original Payable Rates Date Date Issue 12/31/13 2.00-4.45% 4/162003 2/1/2024 $1,440,000 $1,440,000 224,316 - N/A 45,456 2017 1,440,000 1,485,456 - 800,000 140,190 43,548 995,000 1,440,000 1,629,004 124,040 $39,645,000 $35,775,011 Annual debt service requirements to maturity for long-term debt are as follows: Year Ending G.O. Improvement Bonds December 31 Principal Interest Interest 2014 $2,390,000 $301,813 $145,000 $6,675 $660,000 $185,190 2015 1,020,000 245,299 150,000 2,250 750,000 171,090 2016 1,035,000 224,316 - - 770,000 155,890 2017 1,050,000 201,920 - - 800,000 140,190 2018 995,000 178,854 - - 815,000 124,040 2019 915,000 156,148 - - 835,000 107,540 2020 790,000 135,110 - - 860,000 90,590 2021 665,000 116,191 - - 885,000 73,140 2022 550,000 98336 - - 915,000 54,911 2023 570,000 80,357 - - 705,000 37,778 2024 590,000 60,969 - - 550,000 23,698 2025 605,000 40,386 - - 160,000 15,333 2026 390,000 23,135 - - 160,000 11,252 2027 285,000 11,534 - - 165,000 6,944 2028 125,000 5,053 - - 170,000 2,337 2029 130,000 1,706 - - Total $12,105,000 $1,881,127 $295,000 $8,925 $9,200,000 $1,199,923 64 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Governmental Activities Tax Increment All Other General Year Ending Revenue Bonds Obligation Bonds December 31 Principal Interest Principal Interest 2014 $245,000 $443,743 $300,000 $103,164 2015 260,000 431,549 310,000 93,726 2016 280,000 418,368 260,000 84,564 2017 300,000 403,790 215,000 76,351 2018 330,000 387,949 220,000 68,551 2019 350,000 370,568 230,000 60,381 2020 385,000 351,903 240,000 51,661 2021 405,000 331,684 250,000 42,371 2022 440,000 310,039 265,000 32,419 2023 470,000 286,157 275,000 21,828 2024 500,000 260,437 285,000 10,700 2025 535,000 233,125 125,000 2,500 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 $8,545,000 $4,932,060 $2,975,000 $648,216 Business -Type Activities Year Ending Revenue Bonds December 31 Principal Interest 2014 $110,000 $27,700 2015 115,000 25,450 2016 115,000 23,150 2017 125,000 20,750 2018 130,000 18,200 2019 130,000 15,600 2020 135,000 12,950 2021 140,000 10,200 2022 140,000 7,400 2023 145,000 4,550 2024 155,000 1,550 $1,440,000 $167,500 It is not practicable to determine the specific year for payment of long-term accrued compensated absences. 65 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2013, was as follows: Governmental activities: Bonds payable: G.O. improvement debt G.O. refunding bonds 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 Tax increment revenue bonds Total bonds payable - governmental activities Issuance premiums (discounts) Total bonded indebtedness Compensated absences Total governmental activities long-term liabilities Business -type activities: Revenue bonds Total bonds payable - business -type activities Issuance premiums (discounts) Total bonded indebtedness Compensated absences Total business -type activities long-term liabilities Beginning Ending Due Within Balance Additions Reductions Balance One Year $13,435,000 $1,775,000 ($3,105,000) $12,105,000 $2,390,000 9,495,000 - (295,000) 9,200,000 660,000 1,605,000 - (105,000) 1,500,000 110,000 190,000 - (190,000) - - 430,000 - (135,000) 295,000 145,000 185,000 - (65,000) 120,000 60,000 1,480,000 - (125,000) 1,355,000 130,000 8,770,000 - (225,000) 8,545,000 245,000 35,590,000 1,775,000 (4,245,000) 33,120,000 3,740,000 391,471 42,080 (57,752) 375,799 41,048 35,981,471 1,817,080 (4,302,752) 33,495,799 3,781,048 649,849 346,250 (345,891) 650,208 197,087 $36,631,320 $2,163,330 ($4,648,643) $34,146,007 $3,978,135 $1,545,000 $1,440,000 ($1,545,000) $1,440,000 $110,000 1,545,000 1,440,000 (1,545,000) 1,440,000 110,000 - 49,964 (4,508) 45,456 4,508 1,545,000 1,489,964 (1,549,508) 1,485,456 114,508 133,308 91,624 (81,384) 143,548 43,533 $1,678,308 $1,581,588 ($1,630,892) $1,629,004 $158,041 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, 2013 is backed by the full faith and credit of the City, including improvement and revenue bond issues, except for the Tax Increment Bonds of 2006B and 2007. Delinquent assessments receivable at December 31, 2013 totaled $8,126. M CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 PLEDGED REVENUE Future revenue pledged for the payment of long-term debt is as follows: BOM6rve Ne of PmecMs Revenue Pledged Remaining Plincryal all III.. Cum (Year T Pelanlof To1N DMI Smice Ocblxrvre sa%af Net R,,voso Tenn of PI Principal antl Mend Paid MWPd R.— Raeived 2009A Street Aid Slmv Refunding Refunding of 2001113 Sale Aid S1reeMmds MSA aIMmenls IW% WA 2009-2015 $123,600 569,575 $63,600 200A Tax Abaemenl Emerald Park impra'...11 Tax abNemeas mseave 100% WA 2M9-2025 $145,167 SI17.326 $98,704 20098 Tax Abalemera RMuMing ReNMin8 of 2001A Tax Abalcmenl Bonds Taubolemeal rercnue IOW/ N/A 2009-2016 SI71,188 Omit) 876,966 20WA Read lmpmvemeNs $1. No iteral serer impmuxmems of 2006 Special asscsmenls 40% N/A 218,62022 $ - 52.162400 S27,0011 2001A Road lmpeavenimu BI¢n and Nam., Special assessmeals 25% N/A 2077-2023 $1,529.010 51801180 528.456 20NA Read lmpsevemWs Roo Nad¢mmlmnun Spedol acxxs., 21% WA 200M025 $2,726,441 $223,343 SI?864 20LOA Road LopmvemeNs 2010 matl emmanion Spenal assessments 9% WA 2010,2026 S00309 5112,836 $5,208 2011A Read lmpms2meals 2011 rmd eonswc(wn Special eaxessmen6 25% WA 2011-2027 S2j32,3I3 8169,325 542,053 2012A Read lmpmvemems 20125x-2 eonslaelion Special assesoneas 25% N/A 2012-2028 82.606.134 $62083 541,386 20130 Road Mposvescros 2013 and wmwclion Special asseaaneas 25% N/A 2013-W29 $2,090,243 $ - $167.998 20098 Road lmpmvemms Refunding Refllnding of 2001B all 2002A Road lso' men! Be., Speial assasmcnls ]% N/A 20092018 S1,192,78I S199.663 519,298 200M Street Recanslrvclen Bolls Silver lake Road impmvemeas Tax k+y 98% N/A 2WK-2024 $1,853,263 $165581 W.W,] 2009A Storm S— Refundings ItNemle RCNntlin, o172000A Sane Seo'cr Rceme Udlit, cbrget iW% N/A 2W9-2015 S303.925 $145,815 $152,750 2003E Tff Refunding of 1996 T6 bolls, retleeeWpmeN of Super Vale TF 100% WA 2003-2013 $ - $194,750 S 2006B TIF RNcveidnanl IWINeel Neo W3 aN TIF 3-5 TIF 100% N/A 2006-2031 $7028,359 5361,425 5283,180 2007Tff RNcvdopmeat TT 100% N/A 2007-2031 S6149,'MI $318.655 $1.1148211 200380 O. Wsexidswtt Rx'enue Water uN seer Nitily impm"Ons., Clurges for ttn'ias 100% N/A 2003-2024 S - $1.572,218 $ - 2013A G.O. WNer/Sewer Revenue Refunding 2003B 0 WNet/ Saver Revemae Bonds CNR. fm soswexs IM% 85% 2013-2024 $1.607500 S16,240 51,890683 20 11 A Read lmpmvemeas RefuNing Refunding 2W3 SIrte1 Mpmvenenl BOMB Spxial tessmans 22% N/A 2011-2026 $860569 $140,638 $17.5. 201Ill Read! Gnpmremenls Russo, Refunding 20MAantl 2005A St. Mpavemmt Bonds Sexed sssessmem, 25% WA 201E-2020 52,0]2,150 S275360 $32,1511 67 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 ADVANCE CROSSOVER REFUNDING On April 25, 2012, the City issued $1,410,000 in General Obligation Bonds, Series 2012A with an average interest rate of 2.05% to advance refund $1,380,000 of outstanding 2007A Series Bonds with an average interest rate of 4.40%. The net proceeds of $1,423,370 were used to purchase U.S. Government Securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for the interest on the refunding bonds before the crossover date and called principal on the refunded bonds on February 1, 2014. The City advance refunded the 2007A General Obligation Improvement Bonds to reduce its total debt service payments over the last nine years of the bond by $110,499 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) of $98,253. The City is responsible for the debt service of the refunded bonds before the crossover date and the debt service of the refunding bonds after the crossover date. The debt service of the refunding bonds before the crossover date is payable from the escrow account. Assets held with the escrow agent total $1,392,296 at December 31, 2013. Payment Date 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Refunded Bonds Total Refunding Debt Service Commitment Bonds Escrow Account City $1,529,010 $28,625 - 172,175 - 169,275 - 171,325 - 168,325 - 170,275 - 172,125 - 173,875 - 175,483 171,870 $1,394,313 $163,322 - 172,175 - 169,275 - 171,325 - 168,325 - 170,275 - 172,125 - 173,875 - 175,483 171,870 Total $1,529,010 $1,573,353 $1,394,313 $1,708,050 CURRENT REFUNDING On January 8, 2013, the City issued the $1,440,000 General Obligation Water and Sewer Refunding Bonds, Series 2013A with an average interest rate of 1.52% to refund the 2014 through 2024 maturities aggregating $1,450,000 in principal amount of the City's $2,200,000 General Obligation Water and Sewer Revenue Bonds, Series 2003B with an average interest rate of 4.1655%, dated April 16, 2003. Net proceeds of $1,453,524 were used to retire all outstanding principal of the refunded bonds on January 8, 2013. The City refunded the bonds to reduce its total debt service payments over the eleven years by $236,983 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) of $217,167. 68 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 7 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 General Employees Retirement Fund (GERF) 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. GERF 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 GERF and PEPFF. That report may be obtained on the internet at www.p=era.ora, 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 L CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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. GERF Basic Plan members and Coordinated Plan members were required to contribute 9.1% and 6.25%, respectively, of their annual covered salary in 2013. PEPFF members were required to contribute 9.6% of their annual covered salary in 2013. The City was required to contribute the following percentages of annual covered payroll in 2013: 11.78% for Basic Plan GERF members, 7.25% for Coordinated Plan GERF members, and 14.4% for PEPFF members. The City's contributions to the General Employees Retirement Fund for the years ending December 31, 2013, 2012 and 2011 were $143,131, $141,004 and $131,203, respectively. The City's contributions to the Public Employees Police and Fire Fund for the years ending December 31, 2013, 2012 and 2011 were $350,488, $339,281 and $332,497, 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 All 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 twenty-five hundredths 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. 70 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Total contributions made by the City during fiscal year 2013 were: Percentage of Amount Covered Payroll Required Employees Employer Employees Employer Rates PEDCP $1,613 $1,613 5.00% 5.00% 5.00% D. SINGLE EMPLOYER PERS PLAN DESCRIPTION — ST. ANTHONY FIREFIGHTERS RELIEF ASSOCIATION All members of the St. Anthony Fire Department are covered by a defined benefit plan administered by the St. Anthony Firefighters Relief Association. The Plan is a single employer retirement plan and is established and administered in accordance with Minnesota Statute, Chapter 69. The Relief Association provides retirement benefits as well as disability benefits to members and benefits to survivors upon death of eligible members. Benefits are established in accordance with the State Statute and vest after ten years of credited service. The defined retirement benefits are based on a member's years of service. Benefit provisions can be amended by the Relief Association within the parameters provided by State Statutes. The Relief Association issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to St. Anthony Firefighters Relief Association, 3505 Silver Lake Road, St. Anthony, Minnesota, 55418. 71 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 FUNDING POLICY Minnesota Statutes Chapter 69.772 sets the minimum contribution requirement for the City and State aid on an annual basis. These statutes are established and amended by the state legislature. The Relief Association is comprised of volunteers; therefore, members have no contribution requirements. The City receives the State aid contribution and is required by state statutes to pass this through as payment to the Relief Association. This transaction, in the amount of $45,672, is recorded as a revenue and an expenditure in the City's 2013 financial statements. The City's annual pension cost for 2012 (2013 is unavailable) and related information for the plan is as follows: Annual pension cost $39,235 Contributions made: City $33,235 State aid $6,000 Actuarial valuation date 12/31/12 Actuarial cost method Entry age normal Amortization method Level dollar closed Remaining amortization period: Normal cost 20 years Prior service cost 5 years Asset valuation method Market Actuarial assumptions Investment rate of return 5% Projected salary increases N/A Inflation rate N/A Cost of living adjustments None Age of service requirements 50 Post-retirement benefits increase None YYA CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Three year trend information (information for December 31, 2013 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 Actuarial Actuarial Actuarial 12/31/2012 $39,235 100% Valuation 12/31/2011 38,574 100% Funded 12/31/2010 40,415 100% Liability REQUIRED SUPPLEMENTARY INFORMATION — SCHEDULE OF FUNDING PROGRESS Note 8 OTHER POST -EMPLOYMENT BENEFITS (OPEB) In 2009, the City prospectively implemented the requirement of a new accounting pronouncement, GASB Statement No. 45, Accounting and Financial Reporting by Employers for Post -employment Benefits Other Than Pensions. A. PLAN DESCRIPTION In addition to providing the pension benefits described in Note 6, the City provides post -employment health care benefits (as defined in paragraph B) for retired employees and police and firefighters disabled in the line of duty, through a single -employer defined benefit plan. The tern Plan refers to the City's requirement by State Statute to provide retirees with access to health insurance. The OPEB plan is administered by the City. The authority to provide these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a, and 299A.465. The benefits, benefit levels, employee contributions and employer contributions are governed by the City and can be amended by the City through its personnel manual and collective bargaining agreements with employee groups. The Plan is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the plan. The Plan does not issue a separate report. 73 Assets in Excess of Pension Actuarial Actuarial Actuarial (Unfunded) Benefit Valuation Value of Accrued Accrued Funded Per Year Date Assets Liability Liability Ratio of Service 12/31/2012 $901,525 $862,540 $38,985 104.52% $2,800 12/31/2011 889,000 905,996 (16,996) 98.13% 2,800 12/31/2010 984,659 862,804 121,855 114.12% 2,500 Note 8 OTHER POST -EMPLOYMENT BENEFITS (OPEB) In 2009, the City prospectively implemented the requirement of a new accounting pronouncement, GASB Statement No. 45, Accounting and Financial Reporting by Employers for Post -employment Benefits Other Than Pensions. A. PLAN DESCRIPTION In addition to providing the pension benefits described in Note 6, the City provides post -employment health care benefits (as defined in paragraph B) for retired employees and police and firefighters disabled in the line of duty, through a single -employer defined benefit plan. The tern Plan refers to the City's requirement by State Statute to provide retirees with access to health insurance. The OPEB plan is administered by the City. The authority to provide these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a, and 299A.465. The benefits, benefit levels, employee contributions and employer contributions are governed by the City and can be amended by the City through its personnel manual and collective bargaining agreements with employee groups. The Plan is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the plan. The Plan does not issue a separate report. 73 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 B. BENEFITS PROVIDED Retirees The City is required by State Statute to allow retirees to continue participation in the City's group health insurance plan if the individual terminates service with the City through service retirement or disability retirement. To be eligible for benefits, an employee must qualify for retirement or disability benefits from a Minnesota public pension plan. The employee may continue to participate in the City's group health insurance plan that the employee was a participant of immediately prior to retirement. Employees may obtain dependent coverage at retirement only if the employee was receiving dependent coverage immediately prior to retirement. Covered spouses may continue coverage after the retiree's death. The surviving spouse of an active employee may continue coverage in the group health insurance plan after the employee's death. All health care coverage is provided through the City's group health insurance plans. The retiree is required to pay 100% of their premium cost for the City -sponsored group health insurance plan in which they participate. The premium is a blended rate determined on the entire active and retiree population. Since the projected claims costs for retirees exceed the blended premium paid by retirees, the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active employees. Upon a retiree reaching age 65 years of age, Medicare becomes the primary insurer and the City's plan becomes secondary. Disabled police and firefighter The City continues to pay the employer's contribution toward health coverage for Police or Firefighters disabled in the line of duty per Minnesota Statute 299A.465, until age 65. Coverage for a spouse is included, if the spouse was covered at the time of the disability. The January 1, 2013 through December 31, 2013 monthly premiums paid for Police or Firefighters disabled in the line of duty are: Employee Employee Plus Spouse Aware Plan $30 Copay $669 $1,405 $30 Copay 90/10% coinsurance 637 1,138 $500 Deductible - $25 copay 591 1,242 $2500 HDHP/HSA 442 927 $4000 HDHP/HSA 403 847 Accord Plan $30 Copay 644 1,351 $30 Copay 90/10% coinsurance 613 1,286 $500 Deductible - $25 copay 569 1,194 $2500 HDHP/HSA 425 892 $4000 HDHP/HSA 388 814 74 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 C. PARTICIPANTS As of the actuarial valuation dated January 1, 2012, participants consisted of: Retirees and beneficiaries currently purchasing health insurance through the City Disabled police and firefighters Active employees 56 Total 59 Participating employers 1 D. FUNDING POLICY The additional cost of using a blended rate for actives and retirees is currently funded on a pay-as-you- go basis. The City Council may change the funding policy at any time. E. ANNUAL OPEB COSTS AND NET OPEB OBLIGATION The City's annual other post employment benefit (OPEB) cost is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The net OPEB obligation as of December 31, 2013, was calculated as follows: Annual required contribution (ARC) $100,767 Interest on net OPEB obligation 14,924 Adjustment to ARC (12,799) Annual OPEB cost 102,892 Contributions made during the year (17,962) Increase (decrease) in net OPEB obligation 84,930 Net OPEB obligation - beginning of year 331,640 Net OPEB obligation - end of year $416,570 For the governmental activities, the net OPEB obligation is generally liquidated by the General Fund. The City had an actuarial valuation performed for the plan as of January 1, 2012 to determine the funded status of the plan as of that date as well as the employer's annual required contribution (ARC) for the fiscal year ended December 31, 2013. The City's annual OPEB cost, the percentage of annual 75 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 OPEB cost contributed to the plan and the net OPEB obligation for 2011, 2012 and 2013 was as follows: Fiscal Year Ended Annual OPEB Employer Cost Contributions December 31, 2011 $99,368 December 31, 2012 98,886 December 31, 2013 102,892 $23,435 13,152 17,962 F. FUNDED STATUS AND FUNDING PROGRESS Percentage of Annual OPEB Cost Contributed 24.0% 13.0% 17.0% Net OPEB Obligation $245,906 331,640 416,570 The City currently has no assets that have been irrevocably deposited in a trust for future health benefits; therefore, the actuarial value of assets is zero. The funded status of the plan was as follows: Unfunded Actuarial Actuarial UAAL as a Actuarial Actuarial Accrued Accrued Funded Covered Percentage of Valuation Value of Assets Liability (AAL)* Liability (UAAL) Ratio Payroll Covered Payroll Date (a) (b) (b -a) (alb) (c) ( (b -a) / c) January 1, 2012 $0 $838,935 $838,935 0.00% $3,513,322 23.88% *Using the Projected Unit Credit Actuarial cost method. G. ACTUARIAL METHODS AND ASSUMPTIONS Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the health care cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions (ARC) of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the January 1, 2012 actuarial valuation, the Projected Unit Credit Actuarial cost method was used. The actuarial assumptions included a 4.5% investment rate of return (net of administrative expenses), an initial annual health care cost trend rate of 9% reduced by .33% each year to arrive at an ultimate health care cost trend rate of 5.0% and an inflation rate of 3%. The actuarial value of assets was $0. The plan's 76 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 unfunded actuarial accrued liability is being amortized using the level percentage of projected payroll method over 30 years on an open basis. Note 9 INTERFUND RECEIVABLES/PAYABLES. LOANS AND TRANSFERS Individual fund interfund receivable and payable balances at December 31, 2013 are as follows: Fund Receivable Payable Major Funds: General Fund HRA Directed Projects 2012 Street Improvement Project Fund 2014 Street Improvement Project Fund Nonmajor Funds: HRA Fund Internal Service Fund Total $504,259 $ - 121,453 41,090 64,508 244,677 32,531 $504,259 $504,259 Interfund payables and receivables are representative of lending/borrowing arrangements to cover deficit cash balances at the end of the fiscal year. Interfund loans: Fund Major funds: Water and Sewer HRA Projects Street Improvement Project Nonmajor funds: Revolving Improvement Fund Total Receivable Payable Purpose $1,026,721 $ - 959,326 Provide financing for pay off of Fannie Mae loan 5,575 Provide financing for pay off of Fannie Mae loan 61,820 Provide financing for Arbors Alley Project $1,026,721 $1,026,721 77 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Interfund transfers: Transfer out Governmental activities: General Fund HRA Projects Street Improvement Projects Nonmajor Business -type activities: Water and Sewer Fund Liquor Fund Total transfers Transfer In Governmental Activities HRA Street Nonmajor General Debt Improvement Governmental Fund Service Debt Service Fund Total $ $ - $ $95,150 $95,150 876,446 - 876,446 - 193,545 - 193,545 - 317,772 317,772 50,000 50,000 100,000 330,800 - - 108,200 439,000 $380,800 $876,446 $193,545 $571,122 $2,021,913 All of the 2013 transfers are considered routine and consistent with previous practices. Note 10 DEFICIT FUND BALANCES/NET POSITION The City has deficit fund balances/net position at December 31, 2013 as follows: Fund Amount Major funds 2014 Street Improvement Fund $138,667 Nomnajor funds: HRA Fund 169,816 Silver Lake Village Park 2,267 Capital Equipment Fund 3,478 Internal Service Fund 682,739 These deficits will be eliminated in certain situations by; increased levy, bond proceeds, charges to other funds or fund transfers. 78 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 11 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. B. LITIGATION The City 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, 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 31.2013. 79 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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 two tax increment pay-as-you-go agreements. The agreements are not a general obligation of the City and are payable solely from available tax increment. Accordingly, these agreements are not reflected in the financial statements of the City. Details of the pay-as-you-go notes are as follows: TIF District #3-5, Landings at Silver Lake Village The pay-as-you-go note provides for the payment to the developer for 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 payments will be completed February 1, 2031. TIF District #3-5, Phase II Town Homes The pay-as-you-go note provides for the payment to the developer for 95% of all tax increment received in the prior six months. The payment reimburses the developer for streets, utilities, right- of-way, land acquisition, and other public improvements. Principal and interest payments will be completed February 1, 2031. F. ARBITRAGE The City issued greater than $5 million of bonds in the years 2006, 2007 and 2011 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. Note 12 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT General obligation bond issues sold by the City are financed by ad valorem tax levies and improvement bond issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject to cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy any additional taxes found necessary for full payment of principal and interest. These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 2013. 80 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 13 FUND BALANCE A. CLASSIFICATIONS At December 31, 2013, a summary of the governmental fund balance (deficit) classifications are as follows: 81 Street Improvement HRA Street Debt Debt Improvement HRA General Fund Service Service Projects Projects Nonspendable: Prepaid items $43,103 $ - $- Inventory 30,946 - - - Totalnonspendable 74,049 0 0 0 0 Restricted for: Tax increment - - - - 1,831,915 Public safety - - - - - Debt service 2,846,150 592,047 Total restricted 0 2,846,150 592,047 0 1,831,915 Committed to: Community center operations/maintenance - - - - - Recycling - - _ _ _ Revolving loan program 61,049 Total committed 0 0 0 0 61,049 Assigned t0: Community center operations/maintenance - - - - - Streetimprovements/rehabilitiation - - - 152,271 - strum water improvements - - - - Development purposes - - - - - Public safety - - - - - Parks and recreation Total assigned 0 0 0 152,271 0 Unassigned 2,074,490 (1,358,169) Total $2,148,539 $2,846,150 $592,047 $152,271 $534,795 2012 2013 2014 street Street street Improvement Improvement Improvement Project Project Project Other Funds Total Nonspendable: Prepaid items $ - S - S - S49 $43,152 Inventory 30,946 Total nonspendable 0 0 0 49 74,098 Restricted for: Taxincrement - - - - 1,831,915 Public safety - - - 21,528 21,528 Debt service 1,981,209 5419 406 Total restricted 0 0 0 2,002,737 7,272 849 Committed to: Community center operations/maintenance - - - 29,161 29,161 Recycling - - - 3,854 3,854 Revolving loan program 61,049 Total committed 0 0 0 33,015 94,064 Assigned to: Community center operations/maintenance - - - 7,349 7,349 street improvements/rehabilitiation 12,661 289,081 - - 454,013 Storm water improvements - - - 53,383 53,383 Other capital improvements - - - 960,390 960,390 Public safety - - - 10,396 10,396 Parks and recreation 221,952 221,952 Tom] assigned 12,661 289,081 0 1,253,470 1,707,483 Unassigned (138,667) (175,561) 402,093 Total $12,661 5289,081 ($138,667) $3,113,710 $9,550,587 81 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 B. MINIMUM UNASSIGNED FUND BALANCE POLICY The City Council has formally adopted a policy regarding the minimum unassigned fund balance for the General Fund. The most significant revenue source of the General Fund is property taxes. This revenue source is received in two installments during the year — June and December. As such, it is the City's goal to begin each fiscal year with sufficient working capital to fund operations between each semi-annual receipt of property taxes. The policy establishes a year-end targeted unassigned fund balance amount for cash-flow timing needs in the range of 30-35% of the subsequent year's budgeted operating expenditures (net of expenditures for police services to other cities). At December 31, 2013, the unassigned fund balance of the General Fund was 41 % of the subsequent year's budgeted expenditures. Note 14 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, 2013, there were seven series of Multi -family Housing Revenue Bonds outstanding. The aggregate issued amount was $71,685,000, including two 1996 issues totaling $7,200,000, a 2002 issue of $7,775,000, three 2004 issues of $39,760,000, and one 2013 issue of $16,950,000. The balance outstanding at December 31, 2013 is unavailable. 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: 2013 Annual Lease Initial Lease Adjustment Expiration Automatic Lessee Amount Factor Date Renewals Sprint Spectrum Clearwire Communications Verizon Wireless $23,756 4% 26,434 4% 15,000 3% 82 2/27/18 2-5 year terms 7/17/14 5-5 year terms 8/1/18 4-5 year terms n CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 i Future minimum lease payments are as follows: Sprint Clearwire Verizon Spectrum Communications Wireless 2014 $24,706 $27,492 $24,300 2015 25,694 28,591 25,029 2016 26,722 29,735 25,780 2017 27,791 30,924 26,553 2018 28,902 32,161 27,350 2019 30,059 33,448 28,170 2020 31,261 34,786 29,016 2021 32,511 36,177 29,886 2022 33,812 37,624 30,783 2023 35,164 39,129 31,706 2024 36,571 40,695 32,657 2025 38,034 42,322 33,637 2026 39,555 44,015 34,646 2027 41,137 45,776 35,685 2028 42,783 47,607 36,756 2029 7,464 49,511 37,859 2030 - 51,491 38,994 2031 - 53,551 40,164 2032 - 55,693 41,369 2033 - 57,921 42,610 2034 - 60,238 43,889 2035 - 62,647 45,205 2036 - 65,153 46,561 2037 - 67,759 27,630 2038 - 70,470 - 2039 - 38,983 - Total $502,166 $1,183,899 $816,235 83 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 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 2013 is computed as follows: Amount of debt applicable to debt limit Total bonded debt December 31, Less nonapplicable debt: 2013 Market value: (1,735,000) Ramsey County $243,533,600 Hennepin County 431,040,057 Total market value 674,573,657 Debt limit percentage 3.00% Debt limit 20,237,210 Amount of debt applicable to debt limit Total bonded debt 34,560,000 Less nonapplicable debt: Revenue bonds (water, sewer, storm sewer) (1,735,000) State aid street bonds (120,000) Tax abatement bonds (1,355,000) Improvement bonds (12,105,000) Tax increment bonds (8,545,000) Cash and investments in applicable debt service funds (1,914,814) Total amount of debt applicable to debt limit 8,785,186 Legal debt margin $11,452,024 Note 17 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. 67 Financial Reporting for Pension Plans — an amendment of GASB Statement No. 15. The provisions of this Statement are effective for financial statements for fiscal years beginning after June 15, 2013. Statement No. 68 Accounting and Financial Reportingfor Pensions — an amendment of GASB Statement 27. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2014. Statement No. 69 Government Combinations and Disposals of Government Operations. The provisions of this Statement are effective for government combinations and disposals of government operations occurring in financial reporting periods beginning after December 15, 2013, and should be applied on a prospective basis. 84 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Statement No. 70 Accounting and Financial Reporting for Nonexchange Financial Guarantees. The provisions of this Statement are effective for financial statements for reporting periods beginning after June 15,2013. Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date — an amendment of GASB Statement No. 68. The provisions of this Statement should be applied simultaneously with the provisions of Statement 68. The effect these standards may have on future financial statements is not determinable at this time Note 18 PRIOR PERIOD ADJUSTMENT/CHANGE IN ACCOUNTING PRINCIPLE During 2012, corrections to the prior year financial statements were made to correct interest income related to interfund loans. Prior to adjustment the City was not accruing interest on interfund loans receivable and payable. For the year ended December 31, 2013, the City implemented GASB Statements No. 61 and 65. GASB Statement No. 61, The Financial Reporting Entity: Omnibus —An Amendment of GASB No. 14 and No.34 modifies certain requirements for inclusion of component units in the financial reporting entity and also amends the criteria for reporting component units as if they were part of the primary government (i.e. blending). GASB Statement No. 65, Items Previously Reported as Assets and Liabilities resulted in accounts previously presented as liabilities being reclassified as deferred inflows of resources. In addition, GASB 65 results in the restatements of beginning net position to reflect the change in accounting for bond issuance costs. Prior to GASB 65, bond issuance costs were capitalized and amortized over the life of the bond. GASB 65 requires the expensing of issuance costs (excluding bond insurance) in the year of issuance. The restatement of net position due to the elimination of deferred charges is summarized below. Fund balance/net position - December 31, 2011, as previously reported Prior period adjustments: Interfund loan interest Restatement of deferred charges Net Prior period adjustments Fund balance/net position - January 1, 2012, as restated Major Enterprise Total Major Governmental Funds Funds Governmental Business -Type Government Street Improvement Water and Activities Activities Wide Projects HRA Projects Sewer $13,256,059 $10,409,882 $23,665,941 $354,111 $776,143 $8,241,812 (131,028) 131,028 - (70,626) (60,402) 131,028 (480,529) (32,558) (513,087) (32,558) (611,557) 98,470 (513,087) (70,626) (60,402) 98,470 $12,644,502 $10,508,352 $23,152,854 $283,485 $715,741 $8,340,282 85 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 19 PRIOR PERIOD ADJUSTMENT/CORRECTION OF AN ERROR During 2013, corrections to the prior year financial statements were made to correct accounts payable relating to pay-as-you-go TIF. Prior to adjustment the City was not accruing the February payment relating to TIF money received during the year. A summary of changes are as follows Fund balance/net position - January 1, 2013, as previously restated Prior period adjustments: Pay -as -you go TIF Fund balance/net position - January 1, 2013, as restated Note 20 SUBSEOUENT EVENTS Major Governmental Governmental Fund Activities HRA Projects $14,378,700 $716,403 (211,123) (211,123) $14,167,577 $505,280 The City issued the $2,070,000 G.O. Bonds, Series 2014A on March 25, 2014 to fund various public improvements within the City. The City will also issue the $3,750,000 G.O. TIF Revenue Bonds, Series 2014B on July 18, 2014 to refinance the Housing and Redevelopment Authority of the City of St. Anthony's $4,640,000 Tax Increment Revenue Bonds (Silver Lake Village Phase IA Housing), Series 2007. The City will also issue the $1,330,000 G.O. Street Reconstruction Refunding Bonds, Series 2014B on July 18, 2014 to advance refinancing of the City's $1,910,000 General Obligation Street Reconstruction Bonds, Series 2008A. 86 REQUIRED SUPPLEMENTARY INFORMATION 87 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 Statement 10 Page 1 of 5 Expenditures: General government: 2013 Mayor and council: 2012 Current: Budgeted Amounts Actual Variance with Actual - - - - 261 Original Final Amounts Final Budget Amounts Revenues: General property taxes $3,279,228 $3,279,228 $3,381,333 $102,105 $3,267,112 Licenses and permits 228,248 228,248 342,390 114,142 195,563 Intergovernmental: Federal: Police grants 30,750 30,750 127,770 97,020 57,458 State: Market value homestead credit - - 43 43 664 Police aid 159,250 159,250 172,796 13,546 149,162 Fire aid 32,575 32,575 45,672 13,097 33,235 Municipal state aid - street maintenance 70,750 70,750 73,682 2,932 70,115 PERA aid 7,197 7,197 7,197 7,197 County: Street maintenance 19,723 19,723 19,723 - 24,116 Other 8,800 8,800 71,215 62,415 10,289 Local: School District DARE 14,500 14,500 14,500 - 14,500 Other 5,000 5,000 6,756 1,756 14,546 Total intergovernmental 348,545 348,545 539,354 190,809 381,282 Charges for services: Police contracts 1,204,060 1,204,060 1,204,060 - 1,192,138 Cable franchise fees 100,659 100,659 104,089 3,430 101,403 Antenna rental- water tower 50,226 50,226 67,281 17,055 48,340 Other 128,593 138,593 170,911 32,318 129,127 Total charges for services 1,483,538 1,493,538 1,546,341 52,803 1,471,008 Fines and forfeits 108,783 108,783 118,253 9,470 101,429 Contributions and donations 275 275 2,700 2,425 2,278 Other revenue: Investment income 5,500 5,500 (7,315) (12,815) (168) Refunds and reimbursments 5,000 5,000 21,183 16,183 - Miscellaneous - other 91,350 91,350 46,732 (44,618) 102,925 Total other revenue 101,850 101,850 60,600 (41,250) 102,757 Total revenues 5,550,467 5,560,467 5,990,971 430,504 5,616,851 Expenditures: General government: Mayor and council: Current: Personal services 35,151 35,151 34,420 731 35,871 Materials and supplies - - - - 261 Other services and charges 41,275 41,275 33,270 8,005 36,413 Total mayor and council 76,426 76,426 67,690 8,736 72,545 88 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 Statement 10 Page 2 of 5 89 L. 2013 2012 Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) General government: (continued) Intergovernmental relations: Current Contracted services $ - $ - $ - $ - $4,865 Public relations/cable: Current: Personal services 12,569 11,744 6,005 5,739 7,339 Supplies 50 50 1,350 (1,300) 169 Other services and charges 25,300 25,300 27,119 (1,819) 25,879 Capital outlay 50 50 8,157 (8,107) - Total public relations/cable 37,969 37,144 42,631 (5,487) 33,387 General management: Current: Personal services 78,043 78,468 83,959 (5,491) 86,358 Supplies 800 800 1,044 (244) 712 Other services and charges 8,600 8,600 36,746 (28,146) 16,751 Total general management 87,443 87,868 121,749 (33,881) 103,821 Elections: Current: Personal services 18,060 17,804 18,978 (1,174) 23,654 Supplies 1,100 1,100 1,536 (436) 1,471 Other services and charges 4,600 4,600 3,121 1,479 3,714 Total elections 23,760 23,504 23,635 (131) 28,839 Finance: Current: Personal services 118,777 119,472 114,433 5,039 113,989 Supplies 9,750 9,750 8,119 1,631 11,665 Other services and charges 100,138 99,438 122,575 (23,137) 187,251 Total finance 228,665 228,660 245,127 (16,467) 312,905 Assessing: Current: Personal services 3,407 3,277 3,324 (47) 3,589 Supplies 75 75 166 (91) 148 Other services and charges 46,000 46,000 46,270 (270) 45,682 Total assessing 49,482 49,352 49,760 (408) 49,419 Legal: Current: Contracted services 103,750 103,750 72,739 31,011 157,819 Planning and zoning: Current: Personal services - - 1,075 (1,075) - Supplies 125 125 73 52 176 Other services and charges 31,650 31,650 63,712 (32,062) 38,599 Total planning and zoning 31,775 31,775 64,860 (33,085) 38,775 89 L. CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 Expenditures: (continued) General government: (continued) General government buildings: Current: Other services and charges Total general government buildings Total general government Public safety: Civil defense: Current: Personal services Supplies Other services and charges Total civil defense Police protection: Current: Personal services Supplies Other services and charges Total police protection Fire protection: Current: Personal services Supplies Other services and charges Total fire protection Protective inspections: Current: Statement 10 Page 3 of 5 $80,880 2013 $65,394 2012 Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts $80,880 $80,880 $65,394 $15,486 $92,245 80,880 80,880 65,394 15,486 92,245 720,150 719,359 753,585 (34,226) 894,620 56,701 56,668 60,190 (3,522) 54,176 1,500 1,500 418 1,082 1,092 4,400 4,400 1,379 3,021 5,048 62,601 62,568 61,987 581 60,316 2,571,739 2,597,567 2,654,596 (57,029) 2,527,274 117,000 117,700 117,269 431 74,360 209,829 209,829 221,386 (11,557) 91,205 2,898,568 2,925,096 2,993,251 (68,155) 2,692,839 839,327 827,841 818,080 9,761 754,860 26,950 26,950 36,277 (9,327) 23,894 53,205 53,205 86,005 (32,800) 31,228 919,482 907,996 940,362 (32,366) 809,982 Personal services 10,951 10,778 10,558 220 10,860 Supplies 50 50 58 (8) 579 Other services and charges 83,974 83,974 143,287 (59,313) 100,078 Total protective inspections 94,975 94,802 153,903 (59,101) 111,517 DARE program: Current: Personal services 11,904 10,019 10,120 (101) 10,671 Supplies 2,300 2,300 2,815 (515) 2,385 Total DARE program 14,204 12,319 12,935 (616) 13,056 FX CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 Statement 10 Page 4 of 5 Public works: 2013 2012 Street maintenance: Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) Personal services 379,880 365,567 395,646 (30,079) Public safety: (continued) Supplies 30,000 31,375 21,061 10,314 Animal control: Other services and charges 106,085 106,085 112,416 (6,331) Current: Total street maintenance 515,965 503,027 529,123 (26,096) Supplies $100 $100 $63 $37 $ - Contracted services 3,500 3,500 1,070 2,430 1,829 Total animal control 3,600 3,600 1,133 2,467 1,829 Total public safety 3,993,430 4,006,381 4,163,571 (157,190) 3,689,539 Public works: Street maintenance: Current: Personal services 379,880 365,567 395,646 (30,079) 367,006 Supplies 30,000 31,375 21,061 10,314 116,153 Other services and charges 106,085 106,085 112,416 (6,331) 101,656 Total street maintenance 515,965 503,027 529,123 (26,096) 584,815 Equipment maintenance: Current: Personal services 44,578 71,123 68,747 2,376 42,889 Supplies 197,375 229,050 242,497 (13,447) 43,704 Other services and charges 15,276 12,126 29,003 (16,877) 9,393 Total equipment maintenance 257,229 312,299 340,247 (27,948) 95,986 Tree and weed care: Current: Personal services 33,975 41,295 41,147 148 32,943 Other services and charges 4,200 4,200 3,076 1,124 3,300 Total tree and weed care 38,175 45,495 44,223 1,272 36,243 Total public works 811,369 860,821 913,593 (52,772) 717,044 Parks and recreation: Park maintenance: Current: Personal services 144,071 124,867 126,806 (1,939) 74,417 Supplies 17,650 17,650 1,867 15,783 6,039 Other services and charges 34,512 34,512 35,704 (1,192) 37,653 Total park maintenance 196,233 177,029 164,377 12,652 118,109 Recreation: Current: Community services 52,176 52,176 52,176 - 52,176 Total parks and recreation 248,409 229,205 216,553 12,652 170,285 91 t.. CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 Expenditures: (continued) Nondepartmental: Personal services Supplies Workers compensation insurance Total nondepartmental Total expenditures Revenues over (under) expenditures Budgeted Amounts Original Final Statement 10 Page 5 of 5 2013 7,071 2012 Actual Variance with Actual Amounts Final Budget Amounts 40,000 40,000 32,929 7,071 49,430 - 300 478 (178) 99,421 - - 22,710 (22,710) 11,662 40,000 40,300 56,117 (15,817) 160,513 5,813,358 5,856,066 6,103,419 (247,353) 5,632,001 (262,891) (295,599) (112,448) 183,151 (15,150) Other financing sources (uses): Transfers in 355,800 380,800 380,800 355,800 Transfers out (70,150) (70,150) (95,150) (25,000) (68,150) Total other financing sources (uses) 285,650 310,650 285,650 (25,000) 287,650 Net change in fund balance Fund balance - January I Fund balance - December 31 $22,759 $15,051 92 173,202 $158,151 1,975,337 $2,148,539 272,500 1,702,837 $1,975,337 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE NOTE TO RSI December 31, 2013 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. 93 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 SCHEDULE OF FUNDING PROGRESS OTHER POST EMPLOYMENT BENEFITS PLAN For The Year Ended December 31, 2013 94 (1) (2) (3) (4) (5) (6) Unfunded Actuarial Accrued Active UAAL As A Actuarial Actuarial Actuarial Funded Liability Members Percentage of Valuation Value of Accrued Ratio (UAAL) Covered Covered Date Assets Liability (AAL) (1)/(2) (2)-(1) Payroll Payroll (4) / (5) January 1, 2009 $ - $1,160,956 0.00% $1,160,956 $3,383,647 34.31% January 1, 2010 - 835,974 0.00% 835,974 3,543,870 23.59% January 1, 2012 - 838,935 0.00% 838,935 3,513,322 23.88% 94 COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL STATEMENTS AND SCHEDULES 95 SPECIAL REVENUE FUNDS 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 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 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). 96 CITY OF ST. ANTHONY, MINNESOTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 With Comparative Totals For December 31, 2012 Assets Cash and investments Accrued interest Due from other governmental units Accounts receivable - net Prepaid items Property taxes receivable: Delinquent Due from county Special assessments receivable Total assets Statement 12 Special Revenue Debt Capital Service Project Totals Nonmajor Governmental Funds 2013 2012 $82,356 $1,972,950 $1,279,815 $3,335,121 $3,051,324 416 - - 416 4 339,000 - 96,831 435,831 860 99,259 - 99,259 92,075 49 - 49 129 2,992 17,492 712 21,196 10,876 1,345 8,260 446 10,051 5,928 - 951,694 39,637 991,331 743,620 $525,417 $2,950,396 $1,417,441 $4,893,254 $3,904,816 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: $94,916 Accounts payable $32,120 Contracts payable - Interfund payable 244,677 Deposits payable 339,000 Interfund loan payable - Due to other governmental units 12 Salaries payable 4,095 Total liabilities 619,904 $ $62,796 $94,916 $19,371 21,683 21,683 114,925 - 244,677 289,793 - 339,000 - 61,820 61,820 67,440 813 825 2,571 - 4,095 3,306 0 147,112 767,016 497,406 Deferred inflows of resources: Unavailable revenue 2,992 969,187 40,349 1,012,528 753,939 Total deferred inflows of resources 2,992 969,187 40,349 1,012,528 753,939 Fund balance (deficit) Nonspendable 49 - 49 129 Restricted 21,528 1,981,209 2,002,737 1,694,656 Committed 33,015 - - 33,015 151,259 Assigned 17,745 1,235,725 1,253,470 1,036,871 Unassigned (169,816) - (5,745) (175,561) (229,444) Total fund balance (deficit) (97,479) 1,981,209 1,229,980 3,113,710 2,653,471 Total liabilities, deferred inflows of resources, and fund balance $525,417 $2,950,396 $1,417,441 $4,893,254 $3,904,816 97 L CITY OF ST. ANTHONY, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 13 CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 98 Totals Special Debt Capital Nonmajor Governmental Funds Revenue Service Project 2013 2012 Revenues: General property taxes $148,665 $888,323 $49,256 $1,086,244 $862,343 Intergovernmental 17,340 94,506 88,039 199,885 1,124,909 Special assessments - 200,705 6,150 206,855 228,255 Charges for services 132,723 152,750 204,543 490,016 366,669 Fines and forfeits 11,110 - - 11,110 29,131 Investment income 5,295 (5,528) (5,422) (5,655) 1,046 Contributions and donations - 13,434 13,434 500 Refunds and reimbursements 675 15,428 16,103 83,408 Other 3,862 - 169,643 173,505 7,480 Total revenues 319,670 1,330,756 541,071 2,191,497 2,703,741 Expenditures: Current: General government 25,359 - 49,129 74,488 146,199 Public safety 11,183 - - 11,183 21,855 Public works - - 129,283 129,283 101,807 Parks and recreation 172,248 - 32,025 204,273 174,417 Housing and development 135,607 - - 135,607 216,031 Capital outlay: General government - - 46,588 Public safety 5,792 - - 5,792 130,000 Public works - - 270,443 270,443 170,056 Debt service: Principal - 755,000 - 755,000 640,000 Interest - 365,694 3,546 369,240 347,781 Paying agent fees - 4,114 - 4,114 1,545 Professional service 2,703 - 2,703 1,142 Construction/acquistion costs - 69,783 69,783 96,298 Total expenditures 350,189 1,127,511 554,209 2,031,909 2,093,719 Revenues over(under)expenditures (30,519) 203,245 (13,138) 159,588 610,022 Other financing sources: Bonds issued 22,057 - 22,057 40,428 Sale of capital assets - - 25,244 25,244 10,962 Transfers in 95,150 82,772 393,200 571,122 388,268 Transfers out (145,000) (172,772) (317,772) (72,356) Total other financing sources (49,850) 104,829 245,672 300,651 367,302 Net change in fund balance (80,369) 308,074 232,534 460,239 977,324 Fund balance (deficit)- January 1 (17,110) 1,673,135 997,446 2,653,471 1,676,147 Fund balance(deficit)- December 31 ($97,479) $1,981,209 $1,229,980 $3,113,710 $2,653,471 98 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. - This page intentionally left blank - 100 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET r NONMAJOR SPECIAL REVENUE FUNDS December 31, 2013 With Comparative Totals For December 31, 2012 Statement 14 f' i - - - - 49 129 Fire - 21,528 - - Community Police Committed 29,161 Education / 3,854 - - 33,015 151,259 Center Food Forfeiture Recycling HRA Fund Training Totals Nonmajor Special Unassigned 601 Fund 230 Fund 225 301 Fund 240 Revenue Funds 36,559 28,741 3,854 (169,816) 3,183 (97,479) (17,110) Total liabilities, deferred inflows of 2013 2012 Assets resources, and fund balance $46,168 $28,741 $3,854 $443,471 $3,183 $525,417 Cash and investments $46,119 $28,741 $3,854 $459 $3,183 $82,356 $196,360 Accrued interest - - - 416 - 416 4 Due from other governments - - - 339,000 - 339,000 - Accounts receivable - - - 99,259 - 99,259 92,075 Prepaid items 49 - - - - 49 129 Property taxes receivable: Delinquent - - - 2,992 - 2,992 1,550 Due from county - - - 1,345 - 1,345 756 Total assets $46,168 $28,741 $3,854 $443,471 $3,183 $525,417 $290,874 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $8,916 $ - $ - $23,204 $ - $32,120 $10,764 Interfund payable - - - 244,677 - 244,677 289,793 Deposits Payable - - - 339,000 - 339,000 - Due to other governmental units 12 - - - - 12 2,571 Salaries payable 681 - - 3,414 - 4,095 3;306 Total liabilities 9,609 0 0 610,295 0 619,904 306,434 Deferred inflows of resources: Unavailable revenue - - - 2,992 - 2,992 1,550 Total deferred inflows of resources 0 0 0 2,992 0 2,992 1,550 Fund balance (deficit): Nonspendable 49 - - - - 49 129 Restricted - 21,528 - - - 21,528 21,521 Committed 29,161 - 3,854 - - 33,015 151,259 Assigned 7,349 7,213 - - 3,183 17,745 16,243 Unassigned - - - (169,816) - (169,816) (206,262) Total fund balance (deficit) 36,559 28,741 3,854 (169,816) 3,183 (97,479) (17,110) Total liabilities, deferred inflows of resources, and fund balance $46,168 $28,741 $3,854 $443,471 $3,183 $525,417 $290,874 101 i_ CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, Statement 15 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR SPECIAL REVENUE FUNDS For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 Expenditures: Fire Community Police Education / Center Fund Forfeiture Recycling HRA Fund Training Totals Nonmajor Special - 601 Fund 230 Fund 225 301 Fund 240 Revenue Funds - 5,872 11,183 19,367 Parks and recreation 172,248 2013 2012 Revenues: - - 172,248 161,826 Housing and development - General property taxes $ - $ - $ - $148,665 $ - $148,665 $109,905 Intergovernmental: Local - other - 5,792 17,340 - - 17,340 36,677 Charges for services: Total expenditures 172,248 11,103 25,359 135,607 5,872 Administrative fees 449,326 - 2,683 - 5,040 7,723 6,112 Rental receipts 125,000 - - - - 125,000 125,000 Fines and Forfeits - 11,110 - - - 11,110 29,131 Investment income (842) (124) 95,150 6,278 (17) 5,295 1.318 Refunds and reimbursements - - - 675 - 675 83,408 Other 3,237 - 625 - - 3,862 (17) Total revenues 127,395 10,986 20,648 155,618 5,023 319,670 391,534 Expenditures: Current: General government - - 25,359 - - 25,359 41,356 Public safety - 5,311 - - 5,872 11,183 19,367 Parks and recreation 172,248 - - - 172,248 161,826 Housing and development - - 135,607 - 135,607 216,031 Capital outlay: Public safety - 5,792 - - - 5,792 10,746 Total expenditures 172,248 11,103 25,359 135,607 5,872 350,189 449,326 Revenues over (under) expenditures (44,853) (117) (4,711) 20,011 (849) (30,519) (57,792) Other financing sources (uses): Transfers in 70,150 - 25,000 - - 95,150 68,150 Transfers out (145,000) - - (145,000) Net change in fund balance (119,703) (117) 20,289 20,011 (849 (80,369) 10,358 Fund balance (deficit)- January 1 156,262 28,858 (16,435) (189,827) 4,032 (17,110) (27,468) Fund balance(deficit)- December 31 $36,559 $28,741 $3,854 ($169,816) $3,183 ($97,479) 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-term 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 improvements to City parks. Silver Lake Road Bond Fund was established to account for the debt service associated with the reconstruction and infrastructure improvements of Silver Lake Road. 2009 Street Improvement Bond Fund was established to account for the debt service associated with the reconstruction and infrastructure improvements to Chandler Drive and Foss Road. 2010 Street Improvement Bond Fund was established to account for the debt service associated with the reconstruction improvements to Silver Lane and the overlay of portions of Old Highway 8 and Highcrest Road. 2011 Street Improvement Bond Fund was established to account for the debt service associated with the reconstruction improvements to Belden Drive, Coolidge Street, Harding Street and Edward Street. Sidewalk improvements along 39`n Ave are also included. 2012 Street Improvement Bond Fund was established to account for the debt service associated with the reconstruction of Belden Drive and Coolidge Street between 34th and 36th Avenues, 35th Avenue between Belden Drive and Harding Street and miscellaneous sanitary sewer and stormwater repairs. 2013 Street Improvement Bond Fund was established to account for the debt service associated with the reconstruction of Penrod Lane between 36th and 37th Avenues, Chelmsford Road between 36th and 36th Avenues, Edgmere Avenue between Penrod Lane and Chelmsford Road, and Wenhurst Avenue between Penrod Lane and Chelmsford Road. 103 i_ CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR DEBT SERVICE FUNDS December 31, 2013 With Comparative Totals For December 31, 2012 Storm Water State Aid Street Tax Abatement Silver Lake Road Fund 703 Fund 207 Fund 502 Bond Fund 365 Assets Cash and investments $147,981 $67,565 $217,755 $164,058 Property taxes receivable: Delinquent - - 3,024 3,660 Due from county 1,279 1,548 Special assessments receivable - - Total assets $147,981 $67,565 $222,058 $169,266 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities Accounts payable $ $ $ _ $ Total liabilities 0 0 0 0 Deferred inflows of resources: Unavailable revenue 3,024 3,660 Total deferred inflows of resources 0 0 3,024 3,660 Fund balance: Restricted 147,981 67,565 219,034 165,606 Total liabilities, deferred inflows of resources, and fund balance $147,981 $67,565 $222,058 $169,266 104 Statement 16 G - 2009 Street Improvement Bond Fund 512 2010 Street Improvement Bond Fund 514 2011 Street Improvement Bond Fund 516 2012 Street Improvement Bond Fund 518 2013 Street Improvement Bond Fund 520 Totals Nonmajor Debt Service Funds 2013 2012 $393,983 $161,469 $397,652 $308,424 $114,063 $1,972,950 $1,668,094 3,788 2,260 2,771 1,989 - 17,492 9,325 1,923 1,015 1,211 1,284 - 8,260 5,171 171,566 45,746 167,667 355,516 211,199 951,694 700,106 $571,260 $210,490 $569,301 $667,213 $325,262 $2,950,396 $2,382,696 0 $ $ - $ - $ $ - $ - $666 0 0 0 0 0 0 666 175,354 48,006 170,439 357,505 211,199 969,187 708,895 175,354 48,006 170,439 357,505 211,199 969,187 708,895 395,906 162,484 398,862 309,708 114,063 1,981,209 1,673,135 $571,260 $210,490 $569,301 $667,213 $325,262 $2,950,396 $2,382,696 105 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR DEBT SERVICE FUNDS For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 Revenues: General property taxes Intergovernmental: State: MSA state aid Local: ISD - tax abatement Special assessments 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 Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - January 1 Fund balance - December 31 Silver Lake Storm Water Fund State Aid Street Tax Abatement Road Bond 703 Fund 207 Fund 502 Fund 365 $ - $ - $144,764 $175,242 63,600 - - 30,906 152,750 - - - (321) (55) (546) (314) 152,429 63,545 175,124 174,928 135,000 65,000 125,000 105,000 10,875 4,575 47,076 60,581 65 28 377 2,400 - 500 41 145,940 69,603 172,953 168,022 6,489 (6,058) 71 6,906 541 $147,981 $67,565 $219,034 $165,606 106 0 0 0 541 6,489 141,492 (6,058) 73,623 2,171 216,863 7,447 158,1.59 $147,981 $67,565 $219,034 $165,606 106 Statement 17 - - - - - 30,906 2011 Street 19,901 5,208 42,053 41,385 92,158 200,705 222,268 - - - - 2009 Street 2010 Street Improvement 2012 Street 2013 Street 201,789 115,542 177,980 177,413 92,006 1,330,756 Improvement Improvement Bond Fund Improvement Improvement Totals Nonmajor Debt Service Bond Fund 512 Bond Fund 514 516 Bond Fund 518 Bond Fund 520 Funds 170,363 62,308 0 1,127,511 986,627 (22,597) 1,606 2013 2012 92,006 203,245 240,147 $183,256 $110,785 $137,016 $137,260 $ $888,323 $752,438 - - - - 63,600 70,550 - - - - - 30,906 30,906 19,901 5,208 42,053 41,385 92,158 200,705 222,268 - - - - - 152,750 150,735 (1,368) (451) (1,089) (1,232) (152) (5,528) (123) 201,789 115,542 177,980 177,413 92,006 1,330,756 1,226,774 145,000 75,000 105,000 - - 755,000 640,000 78,343 37,836 64,325 62,083 - 365,694 343,940 393 450 297 104 - 4,114 1,545 650 650 741 121 - 2,703 1,142 224,386 113,936 170,363 62,308 0 1,127,511 986,627 (22,597) 1,606 7,617 115,105 92,006 203,245 240,147 - 22,057 22,057 40,428 1 82,230 - 82,772 21,734 - - - - (15,845) 1 0 82,230 0 22,057 104,829 46,317 (22,596) 1,606 89,847 115,105 114,063 308,074 286,464 418,502 160,878 309,015 194,603 - 1,673,135 1,386,671 $395,906 $162,484 $398,862 $309,708 $114,063 $1,981,209 $1,673,135 C 0 u 107 i This page intentionally left blank - 108 L 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. Silver Lake Village Park Fund was established to account for the construction and improvements to 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). Silver Lake Road Project Fund was established to account for the funding and costs of reconstruction for Silver Lake Road from 37`h Avenue NE to St. Anthony Boulevard. 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 Project Fund accounts for the construction costs associated with the reconstruction of Foss Road from Chandler Drive to the City limits. 2011 Street Improvement Project Fund accounts for the street reconstruction and lighting improvements to Belden Drive, Coolidge Street, Harding Street and Edward Street. Sidewalk improvements will occur on 39th Avenue from Macalaster Drive to Silver Lake Road. Storm Water Improvement Fund was established to account for the construction costs associated with the 100 -Year Flood Protection Project and related flooding issues. 109 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS December 31, 2013 With Comparative Totals For December 31, 2012 Assets Cash and investments Due from other governmental units Property taxes receivable: Delinquent Due from county Special assessment receivable Total assets Revolving Improvement 509 $869,161 39,303 39,637 Park Improvement Silver Lake Village 501 Park 350 $221,952 $12,697 $948,101 $221,952 $12,697 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $5,070 Contracts payable - Interfund loan payable 61,820 Due to other governments - Total liabilities 66,890 Deferred inflows of resources: Unavailable revenue Total deferred inflows of resources Fund balance (deficit): Assigned Unassigned Total fund balance (deficit) Total liabilities, deferred inflows of resources, and fund balance 110 39,637 39,637 $ $14,964 0 14,964 0 841,574 221,952 - - (2,267) 841,574 221,952 (2,267) $948,101 $221,952 $12,697 Statement 18 Building Capital Equipment Improvement Fund Storm Water Fund 401 510 Improvement 702 Totals Nonmajor Capital Project Funds 2013 2012 $23,300 $118,816 $33,889 $1,279,815 $1,186,870 11,184 - 46,344 96,831 860 712 - 712 1 446 446 1 - - - 39,637 43,514 $35,642 $118,816 $80,233 $1,417,441 $1,231,246 $15,912 $ $26,850 $62,796 $7,941 21,683 - 21,683 114,925 - 61,820 67,440 813 - 813 - 38,408 0 26,850 147,112 190,306 712 - 40,349 43,494 712 0 0 40,349 43,494 118,816 53,383 1,235,725 1,020,628 (3,478) - (5,745) (23,182) (3,478) 118,816 53,383 1,229,980 997,446 $35,642 $118,816 $80,233 $1,417,441 $1,231,246 N e k_ 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, 2013 With Comparative Totals For The Year Ended December 31, 2012 Revolving Park Silver Lake Silver Lake Improvement Improvement Village Park Road Project 509 501 350 Fund 360 Revenues General property taxes $ $ $ $ Intergovernmental: General government: State - Municipal state aid Transfers in State - other 2,000 Other - local participation 23,875 Special assessments 6,150 Charges for services: Service charges 174,000 - Investment income (4,090) (432) (267) (3) Contributions and donations - - - Refunds and reimbursements 15,428 Other 169,500 - Total revenues 212,863 173,568 (267) (3) Expenditures: General government: Transfers in Materials and supplies Capital outlay - - - - Public safety: (541) Materials and supplies - - - - Capital outlay - - - - Public works: 0 0 Materials and supplies - - 135 - Contractual services 32,052 - - - Capital outlay - - - - Parks and recreation: 544 Fund balance (deficit) - December 31 Materials and supplies - 32,025 - - Debt service: 112 Interest 3,546 - - - Construction/acquistion costs - 59,258 - Total expenditures 35,598 32,025 59,393 0 Revenues over(under)expenditures 177,265 141,543 (59,660) (3) Other financing sources: Transfers in - Transfers out (90,000) (541) Sale of capital assets Total other financing sources (90,000) 0 0 (541) Net change in fund balance 87,265 141,543 (59,660) (544) Fund balance (deficit) - January 1 754,309 80,409 57,393 544 Fund balance (deficit) - December 31 $841,574 $221,952 ($2,267) $0 112 Statement 19 t 145,000 - 978,776 - - 2009 Street 2011 Street Capital Building Improvement Improvement Storm Water Equipment Improvement Project Fund Project Fund Improvement Totals Nonmajor Capital Project Fund 401 Fund 510 511 515 702 Funds - (8) (513) (109) (5,422) 2013 2012 $49,256 $ - $ $ $ $49,256 $ - 49,129 145,000 - 978,776 - - 2,000 8,000 3,000 59,164 86,039 - - - 6,150 5,987 - - 30,543 204,543 84,822 - (8) (513) (109) (5,422) (149) 13,434 - - 13,434 500 - 680,502 15,428 - 142 1 - 169,643 7,497 65,832 (8) 1 (513) 89,598 541,071 1,085,433 49,129 145,000 49,129 104,843 - 298,384 - 46,588 (1) (82,230) (172,772) 2,488 25,244 - - 119,254 - 9,934 10,069 5,865 - 27,998 59,164 119,214 95,942 270,443 - 116,994 270,443 170,056 - 680,502 32,025 12,591 93,268 - 3,546 3,841 ($3,478) 10,525 - 69,783 96,298 319,572 27,998 0 10,525 69,098 554,209 657,766 (253,740) (28,006) 1 (11,038) 20,500 (13,138) 427,667 248,200 145,000 393,200 298,384 - - (1) (82,230) (172,772) (56,511) 25,244 - - 25,244 10,962 273,444 145,000 (1) (82,230) 0 245,672 252,835 1. 19,704 116,994 0 (93,268) 20,500 232,534 680,502 (23,182) 1,822 93,268 32,883 997,446 316,944 ($3,478) $118,816 $0 $0 $53,383 $1,229,980 $997,446 113 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 601 COMMUNITY CENTER FUND Statement 20 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL For The Year Ended December 31, 2013 With Comparative Actual Amounts For The Year Ended December 31, 2012 Revenues: Charges for services: Rental receipts Investment income Other Total revenues Expenditures: Parks and recreation: Current: Personal services Supplies Contractual services Total expenditures Revenues over(under)expenditures Other fmancing sources: Transfer in Transfer out Net change in fund balance Fund balance - January 1 Fund balance - December 31 2013 Budgeted Amounts Original Final Actual $125,000 $125,000 $125,000 336 336 (842) - - 3,237 125,336 125,336 127,395 2012 Actual $125,000 (18) 124,982 13,801 13,801 13,902 13,055 675 675 179 665 162,976 169,887 158,167 148,106 177,452 184,363 172,248 161,826 (52,116) (59,027) (44,853) (36,844) 70,150 70,150 70,150 68,150 (145,000) (145,000) (145,000) ($126,966) ($133,877) (119,703) 31,306 114 156,262 124,956 $36,559 $156,262 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 230 POLICE FORFEITURE FUND Statement 21 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2013 With Comparative Actual Amounts For The Year Ended December 31, 2012 Revenues: Intergovernmental revenue 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 Fund balance - January 1 Fund balance - December 31 k L 2013 Budgeted Amounts Original Final Actual 2012 Actual $2,000 $2,000 $ - $1,552 20,000 20,000 11,110 29,131 25 25 (124) (4) 22,025 22,025 10,986 30,679 - - 2,703 775 10,000 10,000 2,608 13,922 8,500 8,500 - - 1,000 1,000 5,792 10,746 19,500 19,500 11,103 25,443 $2,525 $2,525 (117) 5,236 28,858 23,622 115 $28,741 $28,858 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 225 RECYCLING FUND Statement 22 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2013 With Comparative Actual Amounts For The Year Ended December 31, 2012 Revenues: Intergovernmental: Hennepin County recycling grant Charges for services Other Total revenues Expenditures: General government: Current: Personal services Other services and charges Total expenditures Revenues over(under)expenditures Other financing sources: Transfer in Net change in fund balance Fund balance (deficit) - January 1 Fund balance (deficit) - December 31 2013 1,507 472 Budgeted Amounts 20,810 2012 Original Final Actual Actual $17,500 $17,500 $17,340 $35,125 1,800 1,800 2,683 1,613 - - 625 - 19,300 19,300 20,648 36,738 1,507 1,507 472 1,630 20,810 20,810 24,887 39,726 22,317 22,317 25,359 41,356 ($3,017) ($3,017) (4,711) (4,618) 25,000 25,000 25,000 $21,983 $21,983 20,289 (4,618) 116 (16,435) (11,817) $3,854 ($16,435) CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 301 HRA FUND Statement 23 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2013 With Comparative Actual Amounts For The Year Ended December 31, 2012 Revenues: General property taxes Investment income Refunds and reimbursements Other Total revenues Expenditures: Housing and redevelopment: Current: Personal services Contractual services Total expenditures Revenues over(under)expenditures Fund balance (deficit) - January I Fund balance (deficit) - December 31 91,826 2013 89,500 89,500 Budgeted Amounts 181,326 2012 Original Final Actual Actual $150,585 $150,585 $148,665 $109,905 2,500 2,500 6,278 559 35,000 35,000 675 83,408 (17) 188,085 188,085 155,618 193,855 91,826 91,826 89,500 89,500 181,326 181,326 (189,827) $6,759 $6,759 117 L- 85,383 50,224 86,066 129,965 135,607 216,031 20,011 (22,176) (189,827) (167,651) ($169,816) ($189,827) CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 240 FIRE EDUCATION / TRAINING FUND Statement 24 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2013 With Comparative Actual Amounts For The Year Ended December 31, 2012 Revenues: Charges for services Investment income Total revenues Expenditures: Public safety: Current: Personal services Materials and supplies Other Total expenditures Revenues over expenditures Fund balance - January 1 Fund balance - December 31 2013 Budgeted Amounts 2012 Original Final Actual Actual $4,750 $4,750 $5,040 $4,499 250 250 (17) 781 5,000 5,000 5,023 5,280 4,315 4,315 560 560 25 25 4,900 4,900 $100 $100 118 4,378 4,091 1,494 579 5,872 4,670 (849) 610 4,032 3,422 $3,183 $4,032 {r CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND ( For The Year Ended December 31, 2013 Statement 25 r Balance Balance January 1, December 31, 2013 Additions Deletions 2013 r Developer Deposits Assets: Cash and investments ($1,546) $1,546 ($7,234) ($7,234) Accounts receivable - net 1,546 7,234 (1,546) 7,234 Total assets $ - $7,234 ($8,780) $ - Liabilities: Deposits payable $ - $ $ $ - This page intentionally left blank - 120 SUPPLEMENTARY FINANCIAL INFORMATION 121 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET HRA DEBT SERVICE FUND December 31, 2013 With Comparative Totals For December 31, 2012 G.O. Tax Increment Exhibit 1 Liabilities: 1996A Apache Public Facilities TIF Revenue TIF Revenue Interfund loan payable $ (Cub Foods) Revenue Bonds Bonds2006 Bonds 2007 $ - $437,430 Total liabilities 0 325 311/312 335 336 HRA Debt Service Fund Totals 437,430 Deferred inflows of resources: 2013 2012 Assets Unavailable revenue - 8,049 - - 8,049 Cash and investments $ $584,045 $1626 $2,065 $588,736 $547,126 Funds held in trust Fund balance: - - - 510,097 Accrued interest receivable - - - - - 4 Property taxes receivable: Total liabilities, deferred inflows of Delinquent - 8,049 - - 8,049 5,279 Due from county - 3,311 - - 3,311 2,814 Total assets $0 $595,405 $2,626 $2,065 $600,096 $1.065,320 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Interfund loan payable $ $ - $ $ $ - $437,430 Total liabilities 0 0 0 0 0 437,430 Deferred inflows of resources: Unavailable revenue - 8,049 - - 8,049 5,279 Total deferred inflows of resources 0 8,049 0 0 8,049 5,279 Fund balance: Restricted - 587,356 2,626 2,065 592,047 622,611 Total liabilities, deferred inflows of resources, and fund balance $0 $595,405 $2.626 $2,065 $600,096 $1,065,320 122 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, 2013 With Comparative Totals For The Year Ended December 31, 2012 Revenues: General properly taxes Investment income Total revenues Expenditures: Debt service: Principal Interest and other Paying agent fees Professional service Bond issuance costs Total expenditures Revenues over (under) expenditures Other financing sources (uses) G.O. Tax 115,000 110,000 710,000 Increment 4,750 100,967 246,425 208,655 Bonds 555,286 - 4,185 2,300 1,050 Public 7,521 - - - Facilities - 1,075 1996A Revenue TIF Revenue TIF Revenue - Apache (Cub Bonds Bonds 2006 Bonds 2007 319,705 Foods) 325 311/312 335 336 HRA Debt Service Fund Totals 2013 2012 $ - $374,868 $ - $ - $374,868 $405,739 - (3,546) - - (3,546) 4 0 371,322 0 0 371,322 405,743 190,000 295,000 115,000 110,000 710,000 620,000 4,750 100,967 246,425 208,655 560,797 555,286 - 4,185 2,300 1,050 7,535 7,521 - - - - - 1,075 - - - - - 57,024 194,750 400,152 363,725 319,705 1,278,332 1,240,906 (194,750) (28,830) (363,725) (319,705) (907,010) (835,163) Refunding bonds issued - - - - - 3,995,000 Payment to refund bond escrow agent - - - - - (4,015,373) Premium on debt issued - - - - - 78,083 Transfers in 193,050 - 363,696 319,700 876,446 875,866 Total other financing sources (uses) 193,050 0 363,696 319,700 876,446 933,576 Net change in fund balance (1,700) (28,830) (29) (5) (30,564) 98,413 Fund balance -January1 1,700 616,186 2,655 2,070 622,611 524,198 Fund balance - December 31 $0 $587,356 $2,626 $2.065 $592,047 $622,611 123 L. CITY OF ST. ANTHONY, MINNESOTA BALANCESHEET HRA PROJECTS FUND December 31, 2013 With Comparative Totals For December 31, 2012 Assets Cash and investments Funds held in trust Interfund loan receivable Property taxes receivable: Delinquent Due from county Funds held by others Total assets Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable Interfund payable Deposits payable Interfund loans payable Due to other governments Total liabilities Deferred inflows of resources: Unavailable revenue Total deferred inflows of resources Fund balance (deficit): Restricted Committed Unassigned Total fund balance (deficit) Total liabilities, deferred inflows of resources, and fund balance (deficit) Tax Increment Financing Districts Apache Chandler Apache (Wal- (Cub Foods) Place 321 Mart) 330 326 $ - $1,294,733 $462,869 646,949 - 722,566 - 40,539 - 8,114 Exhibit 3 HRA Directed Projects 319/320 Eliminations HRA Projects Fund Total 2013 2012 $ - $ - $1,757,602 $1,683,511 696 (1,369,515) - - 40,539 32,667 - - 8,114 6,791 61,049 - 61,049 70,925 $646,949 $1,343,386 $1,185,435 $61,049 ($1,369,515) $1,867,304 $1,794,590 $ - $208,367 $ - $ - $ - $208,367 $1,737 99 - - 121,354 - 121,453 118,871 - - - - - - 2,483 - 2,328,841 - - (1,369,515) 959,326 922,429 2,454 370 2,824 99 2,539,662 370 121,354 (1,369,515) 1,291,970 1,045,520 40,539 40,539 32,667 0 40,539 0 0 0 40,539 32,667 646,850 - 1,185,065 - - 1,831,915 1,696,601 - - - 61,049 - 61,049 70,925 (1,236,815) (121,354) (1,358,169) (1,051,123) 646,850 (1,236,815) 1,185,065 (60,305) 0 534,795 716,403 $646,949 $1,343.386 $1.185,435 $61,049 ($1,369,515) $1,867,304 $1,794,590 124 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, 2013 With Comparative Totals For The Year Ended December 31, 2012 Revenues: Tax increment collections Investment income Total revenues Expenditures: General government: Other Housing and redevelopment Debt service: Interest Paying agent fees Developer incentives Total expenditures Revenues over (under) expenditures Other financing sources (uses): Transfers out Net change in fund balance Tax Increment Financing Districts HRA Directed Chandler Apache (Wal- Apache (Cub Projects Place 321 Mart) 330 Foods) 326 319/320 HRA Projects Fund Totals 2013 2012 $ - $1,114,820 $283,180 $ - $1,398,000 $1,364,881 24,878 (6,965) 25,589 - 43,502 50,387 24,878 1,107,855 308,769 0 1,441,502 1,415,268 - 16,274 - - 16,274 18,542 1,900 - 2,687 9,876 14,463 24,066 89,571 - - 89,571 86,125 - - 1,000 415,233 - - 415,233 409,007 1,900 521,078 2,687 9,876 535,541 538,740 22,978 586,777 306,082 (9,876) 905,961 876,528 (683,396) (193,050) (876,446) (875,866) 22,978 (96,619) 113,032 9,876 29,515 662 Fund balance - January 1, as previously reported 623,872 (929,073) 1,072,033 (50,429) 716,403 776,143 Prior period adjustment - (211,123) - - (211,123) (60,402) Fund balance - January 1, as restated 623,872 (1,140,196) 1,072,0335( 0,429) 505,280 715,741 Fund balance (deficit) - December 31 $646,850 ($1,236,815) $1,185,065 $60,305 $534,795 $716,403 125 CITY OF ST. ANTHONY, MINNESOTA SCHEDULE OF REVENUES, EXPENSES AND CHANGES Exhibit 5 FUND NET POSITION WATER AND SEWER ENTERPRISE FUND For The Year Ended December 31, 2013 With Comparative Totals For The Year Ended December 31, 2012 Operations 704 Water Filtration Totals 701 Water and Purification 701 Sewer 2013 2012 Operating revenues: Charges for services $880,851 Connection charges 52,200 Total operating revenues 933,051 Operating expenses: Personal services Supplies Contracted services and other Treatment charges (MCES) Other Depreciation Total operating expenses Operating income (loss) $ $849,032 $1,729,883 $1,786,218 98,600 150,800 49,400 0 947,632 1,880,683 1,835,618 379,446 72,700 251,589 703,735 747,923 (640) 44,539 15,055 58,954 99,669 91,004 6,840 38,632 136,476 94,864 - - 588,795 588,795 580,277 161,363 426 43,664 205,453 213,316 161,939 - 81,686 243,625 256,038 793,112 124,505 1,019,421 1,937,038 1,992,087 Nonoperating revenues (expenses): Investment income Interest expense Fees and cost of issuance Miscellaneous income Total nonoperating revenues (expenses) Income (loss) before capital contributions and transfers Capital contributions and transfers: Capital contributions Transfers out Change in net position Net position - January 1, as originally reported Prior period adjustment Net position - January 1, as restated Net position - December 31 $139,939 ($124,505) ($71,789) (56,355) (156,469) 126 53,269 122,827 (29,102) (64,717) (36,898) (350) 2,740 8,708 (9,991) 66,468 (66,346) (90,001) 1,348,238 (100,000) (100,000) 1,181,892 (190,001) 8,150,281 8,241,812 - 98,470 8,150,281 8,340,282 $9,332,173 $8,150,281 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 Financial Trends Page These tables contain trend information to help the reader understand how 128-133 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 134-137 significant local revenue source, the property tax. Debt Capacity These tables present information to help the reader assess the affordability 138-145 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 146-147 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 148-153 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. L 127 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN NET POSITION Last Nine Fiscal Years (Aurnal Basis of Accounting) Table 2 Page 2 of 2 General revenues and other changes in net position: 78,638 74,764 Fiscal Year 6,833 (336) 52,659 2006 2006 2007 2008 2009 2010 2011 2012 2013 Net (expense) revenue: 10,353 3,454 3,976 17,569 66,478 Taxes: Governmental activities ($2,726,203) ($7,091,452) ($9,402,701) ($4,570,842) ($7,086,587) ($6,009,477) ($6,051,940) ($5,940,229) ($6,562,842) Business -type activities 344,609 304,828 577,568 351,025 262,493 258,443 85,228 298,870 305,979 Total primary government $4,750,440 $4,872,840 $5,408,188 $5,703,707 Tax increment collections 410,968 net (expense) revenue (2,381,594) (6,786,624) (8,825,133) (4,219,817) (6,824,094) (5,751,034) (5,966,712) (5,641,359) (6,256,863) General revenues and other changes in net position: 78,638 74,764 18,985 6,833 (336) 52,659 122,833 51,593 Governmental activities: 499 12,490 18,303 17,089 10,353 3,454 3,976 17,569 66,478 Taxes: (348,250) (485,000) (580,356) 1,514,827 (319,871) (478,000) (595,200) (610,000) 809,238 Total business -type activities Property taxes $3,464,453 $3,668,503 $3,968,436 $4,118,365 $4,442,708 $4,750,440 $4,872,840 $5,408,188 $5,703,707 Tax increment collections 410,968 851,309 1,477,929 1,753,559 1,952,704 1,807,388 1,746,766 1,335,674 1,405,872 Grants and contributions 124,309 94,470 159,741 88,291 20,918 22,827 24,673 10,639 26,384 Unrestricted investment earnings 358,571 514,440 698,345 403,426 208,761 224,693 6,803 55,206 25,914 Other 214,859 96,837 77,745 36,365 16,103 61,866 148,500 208,525 389,785 Gain on sale of capital assets - 8,730 - - 3,981 - - 46,195 - Tmnsfers 348,250 485,000 580,356 (1,514,827) 319,871 478,000 595,200 610,000 (809,238) Total governmental activities 4,921,410 5,719,289 6,962,552 4,885,179 6,965,046 7,345,214 7,394,782 7,674,427 6,742,424 Business -type activities Unrestricted investment earnings 44,410 78,638 74,764 18,985 6,833 (336) 52,659 122,833 51,593 Other 499 12,490 18,303 17,089 10,353 3,454 3,976 17,569 66,478 Transfers (348,250) (485,000) (580,356) 1,514,827 (319,871) (478,000) (595,200) (610,000) 809,238 Total business -type activities (303,341) (393,872) (487,289) 1,550,901 (302,685) (474,882) (538,565) (469,598) 927,309 Total primary government $4,618,069 $5,325,417 $6,475,263 $6,436,080 $6,662,361 $6,870,332 $6,856,217 $7,204,829 $7,669,733 Change in net position: Governmental activities $2,195,207 ($1,372,163) ($2,440,149) $314,337 ($121,541) $1,335,737 $1,342,842 $1,734,198 $179,582 Business -type activities 41,268 (89,044) 90,279 1,901,926 (40,192) (216,439) (453,337) (170,728) 1,233,288 Total primary government $2,236,475 ($1,461,207) ($2,349,870) $2,216,263 ($161,733) $1,119,298 $889,505 $1,563,470 $1,412,870 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. .o In 2011 the Water Filtration and Purification fund was reclassified to the Water and Sewer Proprietary Fund. '2'In 2013, services to other cities were reclassified to public safety expense. Note: GASB 65 was implemented in 2013. Governmental activity expenses were restated for 2012 to reflect the expensing of bond issuance costs in the year of issuance. Expenses for years prior to 2012 were not restated. 130 ( CITY OF ST. ANTHONY, MINNESOTA FUND BALANCES- GOVERNMENTAL FUNDS Table Last Nine Fiscal Years j (Modified Accrual Basis of Accounting) All other governmental funds: Reserved $5,537,424 $5,564,131 $4,116,654 $3,595,470 $6,264,349 $4,625,111 S - $ - $ - Unreserved, reported in: Special revenue funds 5,399,955 5,335,977 5,650,265 5,576,157 5,329,291 5,212,683 - - - Capital projects funds 894,116 1,500,372 695,197 967,355 314,789 243,408 - - - Nonspendable - - - - - - 132 129 49 Restricted - - - - - - 6,868,120 8,594,337 2,002,737 Committed - - - - - - 210,953 222,184 33,015 Assigned - - - - - - 763,667 1,344,529 1,253,470 Unassigned - - (1,240,578) (1,473,482) (175,561) Total all other governmental funds $11,831,495 $12,400,480 $10,462,116 $10,138982 $11,908,429 $10,081,202 $6,602,294 $8,687,697 $3,113,710 Comparable GASB Statement 34 information is available for years beginning in 2005; the City has chosen to provide minimization for that year forward. Ultimately, this table will contain information for ten years. Note: The City implemented GASB Statement No. 54 for the fiscal year ended December 31, 2011, resulting in significant reclassification of the components of fund balances. 131 Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 General Fund: Reserved $39,805 $44,852 546,543 $51,205 $53,849 $57,430 $ - $ - $ - Unreserved 1,147,914 1,237,373 1,391,816 1,389,299 1,471,584 1,567,270 - - - Nonspendable - - - - - - 55,271 681481 74,049 Unassigned 1,647,566 1,906,856 2,074,490 Total general fund $1,187,719 $1,282,225 $1,438,359 $1,440,504 $1,525,433 $1,624,700 $1,702,837 $1,975,337 $2,148,539 All other governmental funds: Reserved $5,537,424 $5,564,131 $4,116,654 $3,595,470 $6,264,349 $4,625,111 S - $ - $ - Unreserved, reported in: Special revenue funds 5,399,955 5,335,977 5,650,265 5,576,157 5,329,291 5,212,683 - - - Capital projects funds 894,116 1,500,372 695,197 967,355 314,789 243,408 - - - Nonspendable - - - - - - 132 129 49 Restricted - - - - - - 6,868,120 8,594,337 2,002,737 Committed - - - - - - 210,953 222,184 33,015 Assigned - - - - - - 763,667 1,344,529 1,253,470 Unassigned - - (1,240,578) (1,473,482) (175,561) Total all other governmental funds $11,831,495 $12,400,480 $10,462,116 $10,138982 $11,908,429 $10,081,202 $6,602,294 $8,687,697 $3,113,710 Comparable GASB Statement 34 information is available for years beginning in 2005; the City has chosen to provide minimization for that year forward. Ultimately, this table will contain information for ten years. Note: The City implemented GASB Statement No. 54 for the fiscal year ended December 31, 2011, resulting in significant reclassification of the components of fund balances. 131 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN FUND BALANCES- GOVERNMENTAL FUNDS Last Nine Fiscal Years (Modified Accrual Basis of Accounting) Table 4 Page 1 of 2 Expenditures: Fiscal Year Current: 2005 2006 2007 2008 2009 2010 201111 2012 201316 Revenues: 776,110 952,291 945,295 1,076,699 1,017,405 1,170,630 883,478 1,059,361 836,190 General property taxes $3,430,286 $3,649,764 $3,957,749 $4,097,493 $4,407,221 $4,787,076 $4,877,268 $5,416,328 $5,657,416 Tax increment collections 410,968 851,309 1,469,532 1,682,549 1,903,840 1,911,678 1,708,873 1,364,881 1,398,000 Licenses, fees and permits 548,972 244,170 213,842 247,878 358,381 224,096 195,563 290,985 342,390 Intergovernmental 1,201,555 954,911 706,080 2,039,592 1,430,366 1,239,053 861,744 1,530,983 792,477 Special assessments 1,548,836 589,812 441,327 385,197 506,262 398,895 517,678 427,467 587,191 Charges for services 1,057,781 1,113,298 1,403,419 1,451,925 1,519,427 1,528,210 1,573,975 1,736,274 1,930,527 Cable franchise fees 69,577 70,737 85,162 92,606 92,309 92,786 96,608 101,403 104,089 Fines and forfeits 101,273 135,960 164,788 139,421 122,870 128,165 117,835 130,560 129,363 Investment income 354,749 507,615 689,428 400,038 184,053 224,598 6,792 55,201 25,938 Contributions and donations - 6,300 37,100 3,950 3,450 2,834 610 2,778 16,134 Miscellaneous 540,229 511,851 404,611 186,449 53,354 708,181 148,500 194,052 375,719 Total revenues 9,264,226 8,635,727 9,573,038 10,727,098 10,581,533 11,245,572 10,105,446 11,250,912 11,359,244 Expenditures: Current: General government 776,110 952,291 945,295 1,076,699 1,017,405 1,170,630 883,478 1,059,361 836,190 Public safety 2,119,568 2,255,783 2,165,891 2,446,434 2,654,708 2,615,752 2,700,328 2,671,890 4,174,754 Public works 772,565 759,254 809,751 679,269 761,530 726,064 684,761 818,851 1,042,876 Parks and recreation 1,467,289 783,791 428,341 394,673 401,787 388,808 366,153 344,702 420,826 Services to other cities 606,952 649,625 911,419 940,807 1,026,842 1,016,479 1,039,009 1,039,504 - Nondepartmental 5,228 1,501 48,735 23,387 6,798 6,940 22,283 160,513 56,117 Housing and redevelopment 424,273 439,422 173,098 212,583 191,608 183,513 227,921 240,097 150,070 Capital outlay: General government 572 6,389 125 - - - 12,661 46,588 8,157 Public safety 139,648 229,174 12,993 - - 67,850 152,405 130,000 5,792 Public works 31,040 21,056 316,264 318,668 271,459 212,029 112,158 170,056 270,443 Parks and recreation - 19,712 - - - - - Debt service: Principal retirement 1,495,000 4,765,000 2,195,000 2,305,000 1,970,000 4,255,000 3,120,000 4,255,000 4,245,000 Interest 997,352 1,022,069 1,313,578 1,450,248 1,369,280 1,392,608 1,271,549 1,299,266 1,308,344 Paying agent fees 14,386 9,373 11,501 10,601 9,519 8,763 11,582 18,811 16,387 Professional service 16,097 9,140 1,901 5,080 5,077 3,117 30,109 3,480 6,682 Issuance costs - - 208,545 - 49,420 - 67,278 132,217 66,035 Constructionlacquisition costs 2,901,864 2,108,395 5,366,376 3,419,607 4,789,180 2,420,767 1,953,923 2,253,448 1,618,986 Developer incentives - 2,769,938 3,592,385 323,485 443,092 470,632 444,013 409,007 415,233 District decertified - repayment of tax increments 36,580 Total expenditures 11,767,944 16,838,493 18,501,198 13,606,541 14,967,705 _ 14,938,952 13,099,611 15,052,791 14,641,892 Revenues over (under) expenditures (2,503,718) (8,202,766) (8,928,160) (2,879,443) (4,386,172) (3,693,380) (2,994,165) (3,801,879) (3,282,648) 132 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN FUND BALANCES- GOVERNNffiNTAL FUNDS Table Last Eight Fiscal Years Page 2 of 2 ( (Modified Accrual Basis of Accounting) r Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 Other financing sources(uses): Bonds issued $1,695,000 $8,165,000 $6,690,000 $1,910,000 $3,965,000 $1,375,000 $1,940,000 $2,195,000 $1,775,000 I Refunding bonds issued - - - - 2,855,000 - 3,225,000 7,300,000 - Redemption ofrefunded bonds - - - - (1,210,000) - (1,030,000) - - Paymenttorefunded bond escrow agent - - - - - - - (4,015,373) - Premium on debt issued - 30,669 - 8,749 140,492 402 105,598 190,221 42,080 I Discount on debt issued - (3,069) (213) - - - - - - Sale of capital assets 12,852 18,855 8,744 14,705 12,056 15,347 9,982 10,962 25,244 Transfers in 467,022 1,775,848 4,275,129 1,832,828 1,307,574 3,634,584 1,603,430 1,626,372 2,021,913 Transfers out (118,772) (1,290,848) (3,827,825) (1,207,828) (829,574) (3,156,584) (1,008,230) (1,016,372) (1,482,913) Total other financing sources(uses) 2,056,102 8,696,455 7,145,835 2,558,454 6,240,548 1,868,749 4,845,780 6,290,810 2,381,324 Net change in fund balance ($447,616) __L493,689 ($1,782,325) ($320,989) $1,854,376 ($1,824,631) S1,851,615 $2,488,931 ($901,324) Debt service as a percentage of nancapital expenditures 28.7% 40.0% 27.4% 38.1°%n 33.7% 46.1% 40.4% 44.6% 43.6% Debt service as percentage of total expenditures 21.2% 34.4% 19.0% 27.6% 22.3% 37.8% 33.5% 36.9% 37.9% 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. ...In 2011 the Water Filtration and Purification fund was reclassified to the Water and Sewer Proprietary Fund. t�11n 2013, services to other cities were reclassified to public safety expense. 0 1 133 L. CITY OF ST. ANTHONY, MINNESOTA TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years Source: Official Statements for the City of St. Anthony. (Hennepin and Ramsey Counties Combined) • 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. '* Excludes tax increment tax capacity and net fiscal disparities impact. 134 Table 5 Tax Capacity as a Percent of EMV Commercial/ Total Adjustments Adjusted Total Estimated Payable Residential Industrial All Tax to Tax Tax Capacity Direct Tax Market Year Property Property Other Capacity Capacily •* Value Rate Value 2004 $5,061,743 $1,387,360 $67,875 $6,516,978 $220,246 $6,737,224 52.01% $576,666,300 2005 5,758,863 1,509,783 70,799 7,339,445 (30,542) 7,308,903 50.31% 636,972,900 2006 6,449,616 2,001,921 65,285 8,516,822 (391,888) 8,124,934 46.58% 730,541,000 2007 7,466,195 2,317,446 75,570 9,859,211 (1,315,126) 8,544,085 46.42% 838,117,800 2008 7,894,132 2,575,759 ' 64,903 10,534,794 (1,374,734) 9,190,060 45.62% 893,542,800 2009 7,537,190 2,684,972 67,599 10,289,761 (1,260,607) 9,029,154 51.61% 869,823,300 2010 7,194,714 2,546,141 64,834 9,805,689 (1,106,369) 8,699,320 55.66% 828,631,600 2011 6,734,706 2,398,897 71,265 9,204,868 (909,287) 8,295,581 59.89% 778,761,500 2012 6,225,942 2,273,812 73,491 8,573,245 (846,346) 7,726,899 68.85% 761,934,600 2013 5,860,660 2,139,288 83,509 8,083,457 (802,123) 7,281,334 75.46% 721,227,600 Source: Official Statements for the City of St. Anthony. (Hennepin and Ramsey Counties Combined) • 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. '* Excludes tax increment tax capacity and net fiscal disparities impact. 134 Table 5 Tax Capacity as a Percent of EMV CITY OF ST. ANTHONY, MINNESOTA DIRECT AND OVERLAPPING PROPERTY TAX RATES Last Ten Fiscal Years I Table 6 Source: Official Statements for the City of St. Anthony (Hennepin County) *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. 0 3 1 135 L_ City Overlapping Rates* Fiscal Direct School Other Hennepin Year Rate District Districts County Total �nnn GV VY cn A101 JG.VI/V 11 Ino/ GG.av/v 11 AGO/ •✓.�✓... X71/0/ ..... a..v 1111 RRO/ •.. ......... 2005 50.31% 19.33% 13.93% 44.17% 127.74% 2006 46.58% 21.78% 14.65% 41.02% 124.03% 2007 46.42% 18.58% 13.38% 39.11% 117.49% 2008 45.62% 19.73% 13.81% 38.57% 117.73% 2009 51.61% 32.04% 13.35% 40.41% 137.41% 2010 55.66% 32.72% 17.37% 42.06% 147.81% 2011 59.89% 36.48% 11.14% 45.84% 153.34% 2012 68.85% 38.32% 12.04% 48.23% 167.44% 2013 75.46% 38.87% 12.70% 49.46% 176.49% Source: Official Statements for the City of St. Anthony (Hennepin County) *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. 0 3 1 135 L_ CITY OF ST. ANTHONY, MINNESOTA PRINCIPAL PROPERTY TAXPAYERS Current Year and Nine Years Ago Taxpayer Inland Silver Lake Village LLC St. Anthony Leased Housing Assoc. Xcel Energy Autumn Woods Partnership LP Equinox Properties LLC Chandler Place LP St. Anthony Shopping Center St. Anthony Nursing Home LP Landau - 3925 Pleasant Highcrest Lanor LP LG Anderson LLC Glaser Financial Group Inc. SuperValu Total Total All Property Tax Capacity Value $720,064 311,073 194,886 185,275 178,030 101,446 99,690 78,364 75,799 52,395 $1,997,022 $8,083,457 2013 IIT,no q 136 1 2 3 4 5 6 7 8 9 10 Percentage Percentage of Total City Tax Capacity Capacity Value Value 5 1.10% 8.91% $74,180 3.85% - 2.41% 70,492 2.29% - 2.20% 877,800 0.00% 85,841 1.23% - 0.97% - 0.94% - 0.00% - 0.00% 53,080 0.00% 229,725 0.00% 137,942 22.80% $1,529,060 $6,737,224 Table 7 2004 Percentage of Total City Capacity Rank Value 5 1.10% 0.00% 6 1.05% 0.00% 1 13.03% 4 1.27% 0.00% 0.00% 0.00% 0.00% 7 0.79% 2 3.41% 3 2.05% 22.70% CITY OF ST. ANTHONY, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Table 8 Last Ten Fiscal Years r i 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 (r) Years Amount of Levy 2004 3,370,364 3,349,081 99.37% 8,129 3,357,210 99.61% 2005 3,689,759 3,655,463 99.07% 12,095 3,667,558 99.40% i 2006 3,812,957 3,776,369 99.04% 31,990 3,808,359 99.88% 2007 4,123,032 4,079,891 98.95% 36,905 4,116,796 99.85% 2008 4,169,941 (2) 4,088,462 98.05% 30,820 4,119,282 98.79% 2009 4,465,113 (1) 4,352,222 97.47% 50,392 4,402,614 98.60% 2010 4,642,067 (2) 4,566,162 98.36% 45,839 4,612,001 99.35% 2011 4,761,665 z1 4,710,258 98.92% 41,462 4,751,720 99.79% 2012 5,223,089 5,157,341 98.74% - 5,157,341 98.74% 1 2013 5,426,789 5,345,759 98.51% 5,345,759 98.51% Beginning with payable year 2002 through 2007, Market Value Homestead Credit is included in the operating levy. (2) Net of Market Value Homestad Credit which was subject to State unallotments or other reductions. l Sources: 2001 - 2004 Official Statements for the City of St. Anthony 2005 - 2012 St. Anthony Finance Department I 137 L. CITY OF ST. ANTHONY, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE Last Nine Fiscal Years Governmental Activities Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Source: St. Anthony Finance Department *Per Capita data is based on a 2010 census of 8,226. Information is not available for years prior to 2005. 138 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% 2009 825,000 16,220,000 10,055,000 6,940,000 2,050,000 $36,090,000 414.86% 2010 695,000 15,260,000 9,710,000 6,295,000 1,250,000 $33,210,000 400.33% 2011 565,000 18,355,000 9,345,000 5,960,000 - $34,225,000 451.61% 2012 430,000 20,660,000 8,960,000 5,540,000 $35,590,000 460.60% 2013 295,000 19,140,000 8,545,000 5,140,000 $33,120,000 454.86% Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Source: St. Anthony Finance Department *Per Capita data is based on a 2010 census of 8,226. Information is not available for years prior to 2005. 138 Table 9 M M 139 L Business -Type Activities Water Sewer/ Liquor Total Bonds Total Percentage Water Revenue Business -Type Per Primary of Personal Per Bonds Bonds Activities Customer Government Income (1) Capita* $2,125,000 $495,000 $2,620,000 $932 $27,570,000 N/A $3,357 2,050,000 425,000 2,475,000 896 30,825,000 N/A 3,924 1,975,000 350,000 2,325,000 1,070 35,170,000 N/A 3,847 1,895,000 270,000 2,165,000 824 34,615,000 N/A 3,818 1,815,000 185,000 2,000,000 789 38,090,000 N/A 4,278 1,730,000 95,000 1,825,000 752 35,035,000 N/A 4,037 1,640,000 - 1,640,000 713 35,865,000 N/A 4,161 1,545,000 1,545,000 672 37,135,000 N/A 4,327 1,440,000 1,440,000 626 34,560,000 N/A 4,026 M 139 L CITY OF ST. ANTHONY, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of December 31, 2013 Governmental Unit Debt repaid with property taxes: 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 (Z) Total direct and overlapping debt Sources: ") Official Statements for City of St. Anthony (2) St. Anthony Finance Department Table 10 Estimated Estimated Share of Debt Percentage Overlapping Outstanding Applicable* Debt $21,160,000 53.4025% $11,299,971 735,600,000 0.3722% 2,737,536 177,575,000 0.4921% 873,766 196,680,000 0.2456% 483,017 55,755,000 0.5118% 285,327 15,679,617 26,015,000 $41,694,617 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 borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. *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. 140 CITY OF ST. ANTHONY, MINNESOTA LEGAL DEBT MARGIN INFORMATION Table Il Last Nine Fiscal Years i Leval Debt Martin Calculation for Fiscal Year 2012 Market value $674,573,657 Debt limit (3% of market value) 20,237,210 Debt applicable to limit: 2009 General obligation bonds 10,700,000 Less: Amount set aside for repayment 2013 of general obligation debt (1,914,814) Total net debt applicable to limit 8,785,186 Legal debt margin $11,452,024 L ( L Source: Market Value - Hennepin County and Ramsey County, Minnesota Assessor's Offices *Debt limit was 2% of market value. Information is not available for years prior to 2005. 141 2005* 2006• 2007" 2008 2009 2010 2011 2012 2013 Debt limit $13,406,318 $14,610,820 $17,870,856 $26,094,699 $24,778,098 $23,262,423 $22,184,277 $21,518,115 $20,237,210 Total net debt applicable to limit 4,776,007 4,429,013 4,099,637 5,741,849 5,410,204 5,059,006 4,708,301 9,520,421 8,785,186 Legal debt margin $8,630,311 $10,181,807 $13,771,219 $24352,850 $19,367,894 $18,203,417 $17,475,976 $11,997,694 $11,452,024 Total net debt applicable to the limit as a percentage of debt limit 35.63% 30.31% 22.94% 22.00% 21.83% 21.75% 21.22% 4424% 4341% L ( L Source: Market Value - Hennepin County and Ramsey County, Minnesota Assessor's Offices *Debt limit was 2% of market value. Information is not available for years prior to 2005. 141 CITY OF ST. ANTHONY, MINNESOTA PLEDGED REVENUE COVERAGE Last Nine Fiscal Years 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 Storm Sewer Revenue Bonds Stormwater Less Net Fiscal Service Operating Available Debt Service Year Charges Expenses Revenue Principal Interest Coverage 2005 $163,957 $ - $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% 2009 167,793 - 167,793 120,000 40,103 105% 2010 150,431 - 150,431 130,000 28,575 95% 2011 150,833 - 150,833 130,000 18,900 101% 2012 150,734 - 150,734 135,000 14,925 101% 2013 152,750 - 152,750 135,000 10,875 105% 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 1 of 2 C I u 143 L Water and Sewer Revenue Bonds Utility Less Net Service Operating Available Debt Service Charges Expenses Revenue Principal Interest Coverage $1,527,505 $1,210,443 $316,562 $75,000 $82,195 201% 1,556,004 1,387,657 168,347 75,000 80,694 108% 1,691,871 1,332,720 359,151 75,000 78,750 234% 1,615,721 1,367,564 248,157 80,000 77,236 158% 1,583,317 1,464,759 118,558 80,000 75,056 76% 1,575,514 1,452,765 122,749 85,000 71,093 79% 1,577,823 1,492,891 84,932 90,000 68,064 54% 1,836,635 1,621,559 215,076 95,000 66,123 133% 1,883,034 1,577,518 305,516 105,000 48,458 199% C I u 143 L CITY OF ST. ANTHONY, MINNESOTA PLEDGED REVENUE COVERAGE Last Nine Fiscal Years 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. 144 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 1,363,696 839,959 523,737 70,000 29,619 526% 2007 1,475,679 900,194 575,485 75,000 24,438 579% 2008 1,475,173 964,663 510,510 80,000 20,125 510% 2009 1,543,854 982,863 560,991 85,000 15,525 558% 2010 1,594,829 1,032,636 562,193 90,000 10,638 559% 2011 1,654,205 1,077,832 576,373 95,000 5,463 574% 2012 1,736,060 1,127,368 608,692 - N/A 2013 1,688,142 1,112,240 575,902 N/A 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. 144 u 0 I Table 12 Page 2 of 2 145 Improvement Bonds Tax Increment Bonds Special Tax Assessment Debt Service Increment Debt Service Collections Principal Interest Coverage Collections Principal Interest Coverage $1,549,836 $485,000 $323,582 192% $410,768 $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% 506,262 760,000 430,947 43% 1,903,840 320,000 526,949 225% 398,895 2,235,000 499,506 15% 1,911,678 345,000 512,504 223% 517,678 2,070,000 532,400 20% 1,708,873 365,000 496,588 198% 427,467 3,315,000 555,220 11% 1,364,881 385,000 479,132 158% 587,191 3,430,000 420,070 15% 1,398,000 415,000 459,830 160% 145 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 121 Information not available is labeled N/A. 13) Official Statements for the City of St. Anthony °) Metropolitan Council Estimate 51 2010 US Census Results 146 Per Capita Fiscal Personal Personal Unemployment Year Population 131 Income 121131 Income(l) Rate10 2004 8,012 385,272,855 48,045 4.50% 2005 8,012 N/A N/A 3.40% 2006 8,012 N/A N/A 3.60% 2007 8,361 N/A N/A 4.20% 2008 8,361 N/A N/A 5.00% 2009 8,437 N/A N/A 6.80% 2010 8,514141 N/A N/A 6.50% 2011 8,226151 N/A N/A 5.30% 2012 8,333141 N/A N/A 4.80% 2013 8,417141 N/A N/A 4.00% Sources: Information is not tracked on a yearly basis for individual cities. Data for Hennepin County was used. Source- Hennepin County 121 Information not available is labeled N/A. 13) Official Statements for the City of St. Anthony °) Metropolitan Council Estimate 51 2010 US Census Results 146 0 0 0 CITY OF ST. ANTHONY, MINNESOTA PRINCIPAL EMPLOYERS Table 14 j Current Year and Nine Years Ago Total 1,433 1,092 * Data is not available for more than the top ten employers in 2013. 147 2013* 2004 Employer Employees Rank Employees Rank ISD No. 282 (St. Anthony - New Brighton) 300 1 250 I Cub Foods 250 2 201 3 Wal-Mart 250 3 - - St. Anthony Health Center and Chandler Place 200 4 225 2 City of St. Anthony 132 5 84 4 B&F Fastener Supply 100 6 - - St. Charles Borromeo Parish 57 7 64 6 Happy's Potato Chip Company 56 8 50 8 Applebee's 45 9 - - Culver's 43 10 58 7 Chandler Place - - 75 5 Francis A. Gross Golf Course 45 9 Baker's Square 40 10 Total 1,433 1,092 * Data is not available for more than the top ten employers in 2013. 147 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 Total Full -Time Equivalent Employees as of December 31, 2013 2004 2005 2006 3.00 3.00 3.00 4.50 4.50 4.50 20.00 20.00 20.00 2.00 2.00 2.00 0.50 0.50 0.50 12.00 12.00 12.00 7.00 7.00 7.00 3.00 3.00 3.00 2.00 2.00 2.00 5.00 6.00 6.00 3.00 3.00 3.00 2.00 2.00 2.00 1.00 1.00 1.00 2.25 2.25 2.25 5.00 5.00 5.00 5.25 5.25 5.25 5.25 5.25 5.25 82.75 * Historical number adjusted to reflect Full -Time Equivalent versus actual head count Source: City of St. Anthony 148 83.75 83.75 Table 15 Full -Time Equivalent Employees as of December 31, 2013 2007 2008 2009 2010 2011 2012 2013 5.25 5.25 5.25 6.00 6.00 6.00 6.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 4.50 4.75 4.75 4.75 4.50 4.25 4.25 22.00 23.00 23.00 23.00 23.00 23.00 23.00 2.00 2.50 2.50 2.50 2.50 2.50 2.50 1.00 1.00 1.00 1.00 1.00 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 6.00 6.00 6.00 6.00 5.00 6.00 6.00 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 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.25 2.00 2.00 2.00 2.00 2.00 2.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.25 5.25 5.25 6.00 6.00 6.00 6.00 5.25 5.25 5.25 6.00 6.00 6.00 6.00 86.25 87.75 87.75 89.25 88.00 87.75 87.75 149 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 and misdemeanor arrests Felony arrests Warrant arrests Fire: Emergency responses Medical responses Fires Inspections ** Building inspection: Permits issued Other public works: Street reconstruction/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 Source: City of St. Anthony 150 Fiscal Year 2004 2005 2006 2,072 1,560 2,246 544 501 632 60 56 114 587 515 750 150 181 162 32 54 67 31 23 22 925 1,043 980 586 646 704 46 47 28 - 197 341 346 292 1 1 1 8 7 5 - 14 8 10 3 898 903 922 1,601 2,192 2,454 Table 16 ' Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2,357 2,137 2,008 2,305 1,848 1,851 2,068 627 494 351 397 210 200 396 26 61 59 49 44 39 34 ' 831 815 770 600 673 578 679 158 203 193 129 145 164 244 45 44 32 29 46 37 67 29 32 32 28 28 20 23 976 1,055 996 956 976 1,012 1,227 696 768 718 895 894 933 1,016 40 89 68 34 35 40 26 78 81 92 97 121 116 88 255 262 283 315 336 272 303 2 2 1 1 2 1 1 35 20 80 22 100 84 39 16 10 - - - - 32 8 9 11 10 10 9 990 902 885 806 821 884 822 2,500 2,157 2,295 1,396 1,586 1,879 1,724 u 151 CITY OF ST. ANTHONY, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2004 Police: 4 Stations 1 Fleet units 12 Fire stations 1 Other public works: 2 City Streets (miles) 24.7 Parks and recreation: 2 Acreage 40 Playgrounds 3 Baseball/softball diamonds (a) 7 Soccer/football fields(') 2 Community centers 1 Liquor operations: 24.7 On/off sale locations(b) 2 Water: 15.0 Water mains (miles) 24.7 Fire hydrants 283 Storage capacity (thousands of gallons) 2,250 Wastewater: Sanitary sewers (miles) 24.7 Storm sewers (miles) 15.0 a.) Park construction Silver Point 2000-2001, Central Park 2003-2004 b.) Closed Stonehouse Bar and SAV 1 in 2003, reopened SAV 1 in 2004, SAV 2 closed 3 weeks in September 2004 to move to new location. Source: City of St. Anthony 152 Fiscal Year 1 1 1 12 12 12 1 1 1 24.7 24.7 24.7 40 40 40 4 4 4 7 7 7 2 2 2 1 1 1 2 2 2 24.7 24.7 24.7 283 283 287 2,250 2,250 2,250 24.7 24.7 24.7 15.0 15.0 15.0 Table 17 Fiscal Year 2008 2009 2010 2011 2012 2013 1 I 1 I 1 1 12 12 13 13 14 14 1 1 1 1 1 1 24.7 24.7 24.7 24.7 24.7 24.7 40 40 40 40 40 40 4 4 4 4 4 4 7 7 7 7 7 7 2 2 2 2 2 2 1 1 1 1 1 1 2 2 2 2 2 2 24.7 24.7 24.7 24.7 24.7 24.7 287 287 287 287 287 287 2,250 2,250 2,250 2,250 2,250 2,250 24.7 24.7 24.7 24.7 24.7 24.7 15.0 15.0 15.0 15.0 15.0 15.0 E 153 u - This page intentionally left blank - 154 r r I L L 11 L �1