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HomeMy WebLinkAbout2014 CAFRCOMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF ST. ANTHONY, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2014 Prepared By: Finance Department Shelly Rueckert, Finance Director - This page intentionally left blank - CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Page Reference No. I. 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 1 29 Statement of Activities Statement 2 30 Fund Financial Statements: Balance Sheet - Governmental Funds Statement 3 32 Statement of Revenues, Expenditures and Changes in Fund Balance - 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 CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Page Reference No. Combining and Individual Nonmajor Fund Financial Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds Statement 12 97 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds Statement 13 98 Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 14 101 Subcombining Statement of Revenues, Expenditures and Changes in 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 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 Reference No. III. STATISTICAL SECTION (Unaudited) Financial Trends: Net Position by Component Table 1 128 Changes in Net Position Table 2 130 Fund Balances - Governmental Funds Table 3 133 Changes in Fund Balances - Governmental Funds Table 4 134 Revenue Capacity: Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 136 Direct and Overlapping Property Tax Rates Table 6 137 Principal Property Taxpayers Table 7 138 Property Tax Levies and Collections Table 8 139 Debt Capacity: Ratios of Outstanding Debt by Type Table 9 140 Direct and Overlapping Governmental Activities Debt Table 10 143 Legal Debt Margin Information Table 11 144 Pledged Revenue Coverage Table 12 146 Demographic and Economic: Demographic and Economic Statistics Table 13 150 Principal Employers Table 14 151 Operating Information: Full -Time Equivalent City Government Employees by Function/Program Table 15 152 Operating Indicators by Function/Program Table 16 153 Capital Asset Statistics by Function/Program Table 17 154 - This page intentionally left blank - �I�kI:is]Bill" to] M61*09Is] z - This page intentionally left blank - June 4, 2015 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, 2014. 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. Redpath and Company, Ltd., Certified Public Accountants, have issued an unmodified opinion on the City of St. Anthony's financial statements for the year ended December 31, 2014. 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. The MD&A complements this letter of transmittal and therefore should be read in conjunction. 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.nm.us• (612) 782-3301• (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) #282 (St. Anthony), which has a 2013/2014 enrollment of approximately 1,733, 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. 4 Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of St. Anthony operates. Local economy: The Minneapolis -St. Paul metropolitan area has continued to experience a relatively stable economy. The market place for local products and services remains strong. St. Anthony is a fully developed City. However, continued long-term growth is anticipated as St. Anthony continues to pursue redevelopment opportunities. Long-term financial planning: The City maintains five capital funds for the replacement of equipment and various infrastructure assets. Each fund is managed by a comprehensive 15 year capital planning document. These documents include the City's current buildings, park improvements, operating equipment and fleet, along with future street, water, sanitary sewer and stormwater improvements. These plans estimate the replacement dates and cost for current and prospective equipment. Additionally the plans include projected future street, water, sanitary sewer and stormwater reconstruction costs. The plans also identify the funding sources for these capital expenditures. These sources include Capital levy, Enterprise funds operating income transfers, parkland dedication fees, stormwater charges, water and sewer connection fees, grants and donations, State aids, cost sharing agreements, bond proceeds and assessments. The City combines the use of goal setting and a comprehensive budget process to identify and prioritize City improvement projects. The 15 -year capital plans are updated annually by staff and are approved by the City Council. 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. R Grants: Each year, the City actively participates in Federal, State and County administered grants. In 2014 the Police, Fire, Public Works and Administration received a variety of public safety, operating, equipment and infrastructure construction grants. A list of the grants includes: A. Minnesota Firefighter Disability Grant. B. Hennepin County LED cost sharing Grant. C. State of Minnesota — Vest Grant. D. Ramsey County — Safe and Sober Grant. E. Minnesota Board of Firefighter Training & Education Grant. F. Rice Creek Watershed Grant — Central Park Rain Garden. G. Rice Creek Watershed Grant — Silver Lake Stormwater Treatment. H. Minnesota Public Facilities Authority Grant — Silver Lake Stormwater Treatment. I. Ramsey County Emergency Management and Homeland Security — Fire Dept. Radios. J. Hennepin County Recycling Grant. K. Ramsey County Recycling Grant. L. Metropolitan Council Environmental Services — Sanitary Sewer Improvements 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 2014, the City continued to receive funding for numerous Crime Prevention activities which included the certification of four police officers as crime prevention specialists by the Minnesota Crime Prevention Association. 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 Aueckert Finance Director 6 CITY OF ST. ANTHONY, MINNESOTA ORGANIZATION December 31, 2014 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 00 00 Ln �t E c 0 0 v v 0 a o2S m v v to c W 0 0 v z v 0 > v O N .m c s 0 o C,6 CO w a; Ln 'v ai c - c c atlAi �a LL J a IMIIki/-1kiIs] �'ix�IMki - This page intentionally left blank - 10 A N S C O M P A N V 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, 2014, and the related notes to the financial statements, which collectively comprise the City of St. Anthony, Minnesota'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, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com 11 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, 2014, 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. Report on Summarized Comparative Information We have previously audited the City of St. Anthony, Minnesota's 2013 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 9, 2014. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2013 is consistent, in all material respects, with the audited financial statements from which it has been 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 nonmajor 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 4, 2015, 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. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 4, 2015 13 - This page intentionally left blank - 14 MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the City of St. Anthony, Minnesota, we offer readers of the City of St. Anthony, Minnesota's financial statements this narrative overview and analysis of the financial activities of the City of St. Anthony, Minnesota for the fiscal year ended December 31, 2014. 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 $27,130,809 (net position). Of this amount, $345,686 (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 $1,212,738 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 $9,093,844, a decrease of $456,743 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 $2,384,345 or 43.96% of total General Fund Budget expenditures. • The City of St. Anthony's total bonded debt decreased by $855,000 (2.5%) during the current fiscal year. The key factors in this decrease were; 1) payoff of 2007A G.O. Improvement bonds totaling $1,500,000; 2) principal retirement of $2,230,000; 3) issuance of the 2014A $2,070,000 G.O. Improvement bonds; 4) issuance of the 2014C $1,305,000 G.O. Refunding bonds; 5) the payoff and refunding of 2007 Tax Increment revenue bonds with Tax Increment 2014B G.O. Tax Increment bonds for a net reduction in debt of $500,000. 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 The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the City of St. Anthony, Minnesota that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of St. Anthony, Minnesota include general government, public safety, public works, parks and recreation, services to other cities and HRA activities. The business - type activities of the City of St. Anthony, Minnesota include the operation of water and sewer utilities and the municipal off -sale liquor stores. The government -wide financial statements include not only the City of St. Anthony, Minnesota itself (known as the primary government), but also a legally separate Housing and Redevelopment Authority (HRA) for which the City of St. Anthony, Minnesota is financially accountable. The HRA functions for all practical purposes as a department of the City of St. Anthony, Minnesota, and therefore has been included as an integral part of the primary government. The government -wide financial statements can be found on Statements 1 and 2 of this report. Fund financial statements. A fund is a grouping of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives. The City of St. Anthony, Minnesota, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City of St. Anthony, Minnesota can be divided into two categories: governmental funds and proprietary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and ou flows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a City's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the City's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 16 The City of St. Anthony, Minnesota maintains 31 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balance for the General, Street Improvement Debt Service, HRA Debt Service, Street Improvement Projects, HRA Projects, 2012 Street Improvement Project, 2013 Street Improvement Project, 2014 Street Improvement Project, 2015 Street Improvement Project, 2016 Street Improvement Project, and Silver Lake Road Bond Fund all of which are considered to be major funds. Data from the other 21 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non -major governmental funds is provided in the form of combining and sub - combining statements and schedules elsewhere in this report. The City of St. Anthony, Minnesota adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on Statements 3 through 5 of this report. Proprietary funds. The City of St. Anthony, Minnesota maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business - type activities in the government -wide financial statements. The City of St. Anthony, Minnesota uses enterprise funds to account for its water and sewer and municipal liquor operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of St. Anthony, Minnesota's various functions. The City of St. Anthony, Minnesota uses an internal service fund to account for its compensated absences. Because these services predominantly benefit governmental rather than business -type functions, they have been included within governmental activities in the government -wide financial statements. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water and sewer and municipal liquor operations, which are considered to be major funds of the City of St. Anthony, Minnesota. The basic proprietary fund financial statements can be found on Statements 6 through 8 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found following Statement 9 of this report. The combining statements referred to earlier in connection with non -major governmental funds are presented immediately following the required supplementary information on budgetary comparisons. Combining and individual fund statements and schedules can be found on Statements 12 through 19 of this report. 17 Government -wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a City's financial position. In the case of the City of St. Anthony, Minnesota, assets exceeded liabilities by $27,105,809 at the close of the most recent fiscal year. The City's overall increase in the net position for 2014 was $1,187,738. City of St. Anthony, Minnesota's Net Position The City's net position increased by $1,212,738 in 2014. The key element for the increase was revenues exceeded expenditures. 18 Governmental Activities Business -Type Activities Totals 2014 2013 2014 2013 2014 2013 Current and other assets $12,063,386 $12,617,051 $6,538,350 $6,843,784 $18,601,736 $19,460,835 Capital assets 38,838,423 37,875,456 7,407,140 7,091,301 46,245,563 44,966,757 Total assets $50,901,809 $50,492,507 $13,945,490 $13,935,085 $64,847,299 $64,427,592 Long term liabilities outstanding $29,949,418 $34,501,146 $1,432,173 $1,690,435 $31,381,591 $36,191,581 Other liabilities 5,428,134 1,644,202 906,765 673,738 6,334,899 2,317,940 Total liabilities $35,377,552 $36,145,348 $2,338,938 $2,364,173 $37,716,490 $38,509,521 Net position: Invested in capital assets net ofrelated debt $14,953,582 $14,322,013 $6,036,192 $5,605,845 $20,989,774 $19,927,858 Restricted 5,740,611 5,264,423 - - 5,740,611 5,264,423 Unrestricted ,169,936) ,239,277) 5,570,360 5,965,067 400,424 725,790 Total net position $15,524,257 $14,347,159 $11,606,552 $11,570,912 $27,130,809 $25,918,071 The City's net position increased by $1,212,738 in 2014. The key element for the increase was revenues exceeded expenditures. 18 City of St. Anthony, Minnesota's Changes in Net Position 19 Governmental Activities Business -Type Activities Totals 2014 2013 2014 2013 2014 2013 Revenues: Program revenue: Charges for services $2,374,306 $2,506,369 $7,878,288 $8,788,826 $10,252,594 $11,295,195 Operating grants and contributions 499,538 585,950 499,538 585,950 Capital grants and contributions 1,070,975 780,072 1,070,975 780,072 General revenue: Property taxes 6,030,558 5,703,707 6,030,558 5,703,707 Other taxes 1,131,896 1,405,872 1,131,896 1,405,872 Grants and contributions not restricted to specific programs 461,964 26,384 - - 461,964 26,384 Other 326,758 415,699 172,956 118,071 499,714 533,770 Total revenues 11,895,995 11,424,053 8,051,244 8,906,897 19,947,239 20,330,950 Expenses: General government 1,116,100 1,029,147 - - 1,116,100 1,029,147 Public safety 4,644,185 4,488,023 4,644,185 4,488,023 Public works 2,711,291 2,565,860 2,711,291 2,565,860 Parks and recreation 608,966 569,254 608,966 569,254 Housing and redevelopment 575,738 565,303 575,738 565,303 Interest on long-term debt 1,044,635 1,217,646 - - 1,044,635 1,217,646 Liquor - - 5,879,240 6,479,809 5,879,240 6,479,809 Water 931,090 859,112 931,090 859,112 Water Filtration and Purification 239,074 124,505 239,074 124,505 Sewer - - 984,182 1,019,421 984,182 1,019,421 Total expenses 10,700,915 10,435,233 8,033,586 8,482,847 18,734,501 18,918,080 Excess before transfers 1,195,080 988,820 17,658 424,050 1,212,738 1,412,870 Transfers (17,982) (809,238) 17,982 809,238 - - Increase (decrease) in net position 1,177,098 179,582 35,640 1,233,288 1,212,738 1,412,870 Net position - January, as previously reported 14,347,159 14,378,700 11,570,912 10,337,624 25,918,071 24,716,324 Prior period adjustment - (211,123) - - - (211,123) Net position - January, as restated 14,347,159 14,167,577 11,570,912 10,337,624 25,918,071 24,505,201 Net position -December 31 $15,524,257 $14,347,159 $11,606,552 $11,570,912 $27,130,809 $25,918,071 19 Governmental Activities. Governmental activities increased the City of St. Anthony's net position by $1,177,098 compared to prior year increase of $179,582. The key element for this change relates to the City contributing assets from Governmental Activities to Business -Type Activities. Revenues by Source - Governmental Grants and Activities contributions not Other restricted to specific 3% Charges for services programs 20% Other taxes 4% Operating grants and 9% contributions 4% Capital grants and contributions 9% Property taxes 51% For the most part, increases in expenses closely paralleled the combining factors of inflation and growth in the demand for services. 20 Business -type activities. Business -type activities increased net position by $35,640. The key factor for the increase was assets were contributed to the Water/Sewer Funds by the Street Improvement Funds. Rate increases for all utility services were made for 2013 and 2014 billings. Revenues by Source - Business -Type Activities Miscellaneous 20 Charges for services 98% 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 $9,093,844, a decrease of $456,743 in comparison with the prior year restated amounts. The ending fund balance by GASB 54 designation is as follows: Nonspendable $92,767 Restricted 7,627,714 Committed 78,180 Assigned 1,318,583 Unassigned (23,400) Total $9,093,844 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 2,384,345, while total fund balance reached $2,475,481. 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 37.2% of total General Fund expenditures and total fund balance represents 38.6% of that same amount. During the current fiscal year, the fund balance in the General Fund increased by $326,942. The Street Improvement Debt Service Fund decreased by $1,225,715 as debt was refinanced in 2012 and proceeds were used for retirement of debt in early 2014. The HRA Debt Service Fund decreased by $31,079 as annual debt service requirements included a pay down of debt associated with the refunding of 2007 tax increment debt. The Street Improvement Project Fund decreased by $152,271 substantially due to the closing transfer of street improvement fund to the related debt service fund. The HRA Projects Funds decreased by $412,048 substantially due to the refunding of 2007 tax increment debt which debt reserves for revenue bonds were used to pay down debt. The 2012 Street Improvement Project fund decreased by $12,661 due to final construction costs and remaining funds transferred to related debt service fund. The 2014 Street Improvement Project fund increased by $169,220 due to the receipt of 2014 bonding proceeds less current construction expenditures. The 2015 Street Improvement Project fund decreased by $130,223 due to preliminary engineering costs prior to construction, 2015 bonding proceeds will be used to repay these preliminary expenditures. The 2016 Street Improvement Project fund decreased by $68,773 due to due to preliminary engineering costs prior to construction, 2016 bonding proceeds will be used to repay these preliminary expenditures. Non -major Special Revenue Funds decreased by $6,731 to a balance of ($104,210) substantially due to deductible cost associated with lightning strike damage at the Community Center building. Non -major Debt Service Funds had a total fund balance of $1,996,027, 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 $180,424, of which $44,046 represents the addition of the 2014 Street Improvement Bond Fund. Non -major Capital Project Funds had a total fund balance of $1,058,067, a decrease of $460,994, substantially due to the construction expenditures related to the Salo Park stormwater treatment system. 22 Proprietary funds. The City of St. Anthony, Minnesota's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Total net position in the Liquor Operations and Water and Sewer Funds at the end of the year amounted to $11,606,552. The total net position for each fund was: Liquor — $2,113,362; Water and Sewer — $9,493,190. General Fund Budgetary Highlights Variances from actual to budget can be briefly summarized as follows: • Licenses and permits were $147,555 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 $274,221 greater than budget due to the levy's inclusion of an allowance for uncollected taxes and greater excess tax increment collections than budgeted. • Police Grants revenues exceed budget by $18,086 due to a conservative budget related to a County grant for the safe and sober program. • Police State Aid —was greater than budget by $38,610 due to conservative budget related to supplemental funding provided by the State. • Investment income was greater than budget by $24,340 due to the non -budgeted unrealized gain on investments and conservative budgeting for investment interest earnings. • Miscellaneous other revenues were $26,420 greater than budget due to dividends on workers compensation insurance not expected to be distributed by the League of Minnesota Insurance Trust for 2014. • Legal — contracted services were greater than budget by $58,920 due to costs associated with implementing an organized collection system and costs associated with land use litigation. • Planning and zoning —other services and charges was $11,825 greater than budget due to contracted planner's assistance with land use litigation. • Police protection — personal services was $52,227 greater than budget due to the budget variances that were the result of changes in benefit elections, longevity advancements and greater resource allocations to meet staffing needs. • Fire protection — other services and charges was $61,846 greater than budget due to costs associated with turnover, recruitment and training of several paid on call firefighters. • Protective Inspections — other services and charges was $80,413 greater than budget due to greater construction related revenues. 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, 2014 amounts to $46,245,563 (net of accumulated depreciation). This investment in capital assets includes land, buildings and structures, improvements, machinery and equipment, park facilities, roads and infrastructure. The total increase in the City of St. Anthony, Minnesota's investment in capital assets for the current fiscal year is 2.84%. 23 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 along with Salo Pond Stormwater treatment system, Fiber Lan utility improvements and Southeast Regional Stormwater treatment system. City of St. Anthony, Minnesota's Capital Assets Governmental Activities Business -Type Activities Totals 2014 2013 2014 2013 2014 2013 Land $3,747,184 $3,747,184 $5,653 $5,653 $3,752,837 $3,752,837 Land improvement 555,181 505,717 - - 555,181 $505,717 Buildings and structures 9,836,936 9,836,936 3,883,283 3,883,283 13,720,219 $13,720,219 Furniture and fixtures 3,899,084 3,645,444 1,455,295 1,441,075 5,354,379 $5,086,519 Software intangibles 6,823 - 26,022 26,022 32,845 $26,022 Infrastructure/streets 32,438,813 31,441,542 8,636,295 8,145,639 41,075,108 $39,587,181 Storm sewers 428,469 428,469 - - 428,469 $428,469 Storm water 2,253,147 2,063,842 - - 2,253,147 $2,063,842 Less accumulated depreciation (17,406,583) (15,510,352) (6,771,562) (6,410,371) (24,178,145) ($21,920,723) Construction in progress 3,079,369 1,716,674 172,154 3,251,523 $1,716,674 Total $38,838,423 $37,875,456 $7,407,140 $7,091,301 $46,245,563 $44,966,757 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 $33,705,000. Of this amount, $24,455,000 comprises debt backed by the full faith and credit of the City, $7,920,000 is backed by tax increments and $1,330,000 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. City of St. Anthony, Minnesota's Outstanding Debt General Obligation and Revenue Bonds Governmental Activities Business -Type Activities Totals 2014 2013 2014 2013 2014 2013 General obligation bonds $24,305,000 $24,280,000 $ - $ - $24,305,000 $24,280,000 G.O. revenue bonds 150,000 295,000 1,330,000 1,440,000 1,480,000 1,735,000 Revenue bonds 7,920,000 8,545,000 - - 7,920,000 8,545,000 Issuance premiums (discounts) 482,350 375,799 40,948 45,456 523,298 421,255 Compensated absences 661,966 650,208 153,726 143,548 815,692 793,756 Total $33,519,316 $34,146,007 $1,524,674 $1,629,004 $35,043,990 $35,775,011 The City of St. Anthony's total bonded debt decreased $855,000 (2.5%) during the current fiscal year. The key factors in this decrease were; 1) payoff of 2007A G.O. Improvement bonds totaling $1,500,000; 2) principal retirement of $2,230,000; 3) issuance of the 2014A $2,070,000 G.O. Improvement bonds; 4) issuance of the 2014C $1,305,000 G.O. Refunding bonds; 5) the payoff and refunding of 2007 Tax Increment revenue bonds with Tax Increment 2014B G.O. Tax Increment bonds for a net reduction in debt of $500,000. 24 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 $20,226,682, which is in excess of the City of St. Anthony, Minnesota's $6,110,000 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 2015 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 27 - This page intentionally left blank - 28 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF NET POSITION December 31, 2014 With Comparative Totals For December 31, 2013 Statement 1 Liabilities: 14,953,582 6,036,192 Primary Government 19,927,858 Restricted for: Governmental Business -Type Totals 808,869 651,511 Activities Activities 2014 2013 Assets: Deposits payable 2,000 77,825 79,825 Cash and investments $9,211,416 $4,125,755 $13,337,171 $13,870,626 Funds held in trust 1,290,049 - 1,290,049 1,392,296 Accrued interest 24,434 - 24,434 17,584 Due from other governmental units 296,805 - 296,805 662,976 Internal balances (1,015,526) 1,015,526 - - Accounts receivable - net 32,620 501,365 533,985 585,842 Prepaid items 86,579 26,102 112,681 66,128 Property taxes receivable 270,260 - 270,260 217,312 Special assessments receivable 1,789,048 - 1,789,048 1,758,676 Funds held for others 71,513 - 71,513 61,049 Inventories - at cost 6,188 869,602 875,790 828,346 Capital assets - net: Due in more than one year 435,428 74,279 509,707 Nondepreciable 6,826,553 177,807 7,004,360 5,469,511 Depreciable 32,011,870 7,229,333 39,241,203 39,497,246 Total assets 50,901,809 13,945,490 64,847,299 64,427,592 Liabilities: 14,953,582 6,036,192 20,989,774 19,927,858 Restricted for: Accounts payable 440,853 368,016 808,869 651,511 Contracts payable 309,638 152,642 462,280 77,447 Deposits payable 2,000 77,825 79,825 425,550 Due to other governmental units 42,894 68,627 111,521 448,499 Salaries payable 209,051 61,792 270,843 241,473 Accrued interest payable 418,372 11,083 429,455 473,460 Compensated absences payable: Due within one year 203,559 47,272 250,831 240,620 Due in more than one year 458,407 106,454 564,861 553,136 Bonds and notes payable (net of unamortized premiums and discounts): Due within one year 3,801,767 119,508 3,921,275 3,895,556 Due in more than one year 29,055,583 1,251,440 30,307,023 31,085,699 Other post employment benefits: Due in more than one year 435,428 74,279 509,707 416,570 Total liabilities 35,377,552 2,338,938 37,716,490 38,509,521 Net position: Net investments in capital assets 14,953,582 6,036,192 20,989,774 19,927,858 Restricted for: Debt service 5,717,140 - 5,717,140 5,242,895 Public safety 23,471 - 23,471 21,528 Unrestricted (5,169,936) 5,570,360 400,424 725,790 Total net position $15,524,257 $11,606,552 $27,130,809 $25,918,071 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, 2014 With Comparative Totals For The Year Ended December 31, 2013 Functions/Pro rg ams 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 $1,116,100 4,644,185 2,711,291 608,966 575,738 1,044,635 10,700,915 Program Revenues Charges For Services $435,702 1,368,246 336,349 234,009 2,374,306 5,879,240 6,078,039 845,396 879,007 239,074 - 1,069,876 921,242 8,033,586 7,878,288 $18,734,501 $10,252,594 The accompanying notes are an integral part of these financial statements. 30 Statement 2 The accompanying notes are an integral part of these financial statements. 31 Net (Expense) Revenue and Program Revenues Changes in Net Position Operating Capital Primary Government Grants and Grants and Governmental Business -Type Totals Contributions Contributions Activities Activities 2014 2013 $17,383 $ - ($663,015) $ - ($663,015) ($590,662) 352,977 - (2,922,962) - (2,922,962) (2,764,897) 127,378 1,037,135 (1,210,429) - (1,210,429) (1,260,028) - 33,840 (341,117) - (341,117) (166,165) - - (575,738) - (575,738) (565,303) 1,800 - (1,042,835) - (1,042,835) (1,214,046) 499,538 1,070,975 (6,756,096) 0 (6,756,096) (6,561,101) - - - 198,799 198,799 428,334 - - - 33,611 33,611 106,939 - - (239,074) (239,074) (124,505) - - - (148,634) (148,634) (104,789) 0 0 0 (155,298) (155,298) 305,979 $499,538 $1,070,975 (6,756,096) (155,298) (6,911,394) (6,255,122) General revenues: General property taxes 6,030,558 - 6,030,558 5,703,707 Tax increment taxes 1,131,896 - 1,131,896 1,405,872 Grants and contributions not restricted to specific programs 461,964 - 461,964 26,384 Unrestricted investment earnings 189,441 111,512 300,953 75,766 Gain on sale of capital assets 33,204 - 33,204 - Other 104,113 61,444 165,557 456,263 Transfers (17,982) 17,982 - - Total general revenues and transfers 7,933,194 190,938 8,124,132 7,667,992 Change in net position 1,177,098 35,640 1,212,738 1,412,870 Net position - January 1, as previously reported 14,347,159 11,570,912 25,918,071 24,716,324 Prior period adjustment - - - (211,123) Net position - January 1, as restated 14,347,159 11,570,912 25,918,071 24,505,201 Net position - December 31 $15,524,257 $11,606,552 $27,130,809 $25,918,071 The accompanying notes are an integral part of these financial statements. 31 CITY OF ST. ANTHONY, MINNESOTA BALANCESHEET GOVERNMENTALFUNDS December 31, 2014 With Comparative Totals For December 31, 2013 The accompanying notes are an integral part of these financial statements. 32 General Fund Street Improvement HRA Debt Service HRA Projects 101/900 Debt Service 345 311/312/335/336 319/321/326/330 Assets Cash and investments $1,924,907 $1,610,184 $620,244 $1,345,559 Funds held in trust - - Accrued interest 24,251 Due from other governmental units 42,476 Interfund receivable 639,128 Accounts receivable - net 32,620 - - Prepaid items 84,948 - - - Property taxes receivable: Delinquent 57,460 13,523 5,913 54,611 Due from county 90,769 10,251 2,882 1,287 Special assessments receivable 30 628,505 - - Funds held by others - - 71,513 Inventories 6,188 - - Total assets $2,902,777 $2,262,463 $629,039 $1,472,970 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $120,408 $ $ - $214,932 Contracts payable - - Interfund payable - 121,354 Deposits payable 2,000 - Interfund loan payable - 959,326 Due to other governmental units 42,882 - Salaries payable 204,516 - - Total liabilities 369,806 0 0 1,295,612 Deferred inflows of resources: Unavailable revenue 57,490 642,028 5,913 54,611 Total deferred inflows of resources 57,490 642,028 5,913 54,611 Fund balance (deficit): Nonspendable 91,136 - - - Restricted - 1,620,435 623,126 1,894,041 Committed - - - 71,513 Assigned - - Unassigned 2,384,345 - (1,842,807) Total fund balance (deficit) 2,475,481 1,620,435 623,126 122,747 Total liabilities, deferred inflows of resources, and fund balance (deficit) $2,902,777 $2,262,463 $629,039 $1,472,970 The accompanying notes are an integral part of these financial statements. 32 Statement 3 2014 Street 2015 Street 2016 Street Other Improvement Improvement Improvement Silver Lake Road Governmental Intra -Activity Project Fund 521 Project Fund 523 Project Fund 525 Bond Fund 365 Funds Eliminations Total Governmental Funds 2014 2013 $124,640 $ $ $179,032 $3,379,878 $ $9,184,444 $9,331,784 - 1,290,049 1,290,049 1,392,296 - 183 - 24,434 17,584 75,000 18,673 - 160,656 296,805 662,976 - - - (639,128) - 32,531 - 32,620 127,997 - 1,631 86,579 43,152 2,747 14,832 149,086 157,575 1,350 14,635 121,174 59,737 - 1,160,513 1,789,048 1,758,676 - 71,513 61,049 - - 6,188 30,946 $199,640 $18,673 $0 $1,473,361 $4,732,145($639,128) $13,051,940 $13,676,303 $17,533 $34,676 $16,172 $ $37,132 $ $440,853 $497,749 151,554 - - 158,084 309,638 77,447 - 114,220 52,601 350,953 (639,128) - - - - - 2,000 341,000 56,200 1,015,526 1,026,721 12 42,894 84,812 - - - 4,535 209,051 181,734 169,087 148,896 68,773 0 606,916 (639,128) 2,019,962 2,209,463 - - - 2,747 1,175,345 1,938,134 1,916,253 0 0 0 2,747 1,175,345 0 1,938,134 1,916,253 - 1,631 92,767 74,098 1,470,614 2,019,498 7,627,714 7,272,849 - - 6,667 78,180 94,064 30,553 1,288,030 1,318,583 1,707,483 - (130,223) (68,773) - (365,942) (23,400) 402,093 30,553 (130,223) (68,773) 1,470,614 2,949,884 0 9,093,844 9,550,587 $199,640 $18,673 $0 $1,473,361 $4,732,145 ($639,128) $13,051,940 $13,676,303 Fund balance reported above $9,093,844 $9,550,587 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. 38,838,423 37,875,456 Other long-term assets are not available to pay for current -period expenditures and, therefore, are reported as unavailable in the funds. 1,938,134 1,916,253 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. (33,711,150) (34,312,398) 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. (634,994) (682,739) Net position of governmental activities $15,524,257 $14,347,159 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, 2014 With Comparative Totals For The Year Ended December 31, 2013 The accompanying notes are an integral part of these financial statements. 34 Street Street 2012 Street General Fund Improvement Debt HRA Debt Service Improvement HRA Projects Improvement 101/900 Service 345 311/312/335/336 Projects 340 319/321/326/330 Project Fund 517 Revenues: General property taxes $3,551,089 $898,415 $377,755 $ - $ - $ Tax increment collections - - - 1,117,824 Licenses, fees and permits 351,102 - Intergovernmental 899,613 - Special assessments - 178,624 Charges for services 1,471,652 - Cable franchise fees 109,009 Fines and forfeits 119,035 - - - Investment income 29,840 15,482 11,300 73,776 Contributions and donations 11,800 - - - Refunds and reimbursement 9,130 - Miscellaneous 73,420 - - 10,464 Total revenues 6,625,690 1,092,521 389,055 0 1,202,064 0 Expenditures: Current: General government 871,369 - - 19,673 Public safety 4,328,233 - - Public works 904,693 2,331 Parks and recreation 248,478 - Nondepartmental 59,265 Housing and redevelopment - 710 Capital outlay: General government Public safety Public works Parks and recreation - - Debt service: Principal 2,305,000 4,575,000 - Interest 158,428 519,259 93,154 Paying agent fees 1,747 3,494 - Professional service 5,332 - Issuance costs - 77,241 Construction/acquisition costs - - Developer incentives - - - 431,875 - Total expenditures 6,412,038 2,470,507 5,174,994 0 545,412 2,331 Revenues over (under) expenditures 213,652 (1,377,986) (4,785,939) 0 656,652 (2,331) Other financing sources (uses): Bonds issued - - - Refunding bonds issued 3,665,000 Premium on debt issued 83,318 Sale of capital assets - - - Transfers in 264,244 152,271 1,070,467 Transfers out (150,954) - (1,767) (152,271) (1,068,700) (10,330) Total other financing sources (uses) 113,290 152,271 4,817,018 (152,271) (1,068,700) (10,330) Net change in fund balance 326,942 (1,225,715) 31,079 (152,271) (412,048) (12,661) Fund balance (deficit) - January 1 2,148,539 2,846,150 592,047 152,271 534,795 12,661 Prior period adjustment - - - - - - Fund balance (deficit) - January 1, as restated 2,148,539 2,846,150 592,047 152,271 534,795 12,661 Fund balance (deficit) - December 31 $2,475,481 $1,620,435 $623,126 $0 $122,747 $0 The accompanying notes are an integral part of these financial statements. 34 Statement 4 2014 Street 2015 Street 2016 Street (35,544) Other 0 (8,061,676) Improvement Improvement Improvement Silver Lake Road Governmental Intra -Activity 43,755 Project Fund 521 Project Fund 523 Project Fund 525 Bond Fund 365 Funds Eliminations Total Governmental Funds - 4,970,000 - 39,174 2014 2013 $ $ $ $178,123 $1,047,737 $ $6,053,119 $5,657,416 - 13,390 - 13,390 1,117,824 1,398,000 421,184 - 351,102 342,390 75,000 18,673 - 471,193 1,464,479 792,477 166,404 - 0 0 146,960 491,988 587,191 - 2,381,324 169,220 (130,223) 315,959 1,787,611 1,932,268 0 (456,743) (901,324) (138,667) - 109,009 104,089 - - 9,550,587 - 7,549 126,584 129,363 11,754 - 1,354 45,710 189,216 24,197 - 165,606 3,237,185 - 33,840 45,640 16,134 ($130,223) ($68,773) $1,470,614 $2,949,884 3,428 12,558 37,286 - - 7,671 91,555 338,433 253,158 18,673 0 179,477 2,080,047 0 11,840,685 11,359,244 - - 35,459 926,501 836,190 29,330 4,357,563 4,174,754 94,354 1,001,378 1,042,876 214,579 463,057 420,826 - 59,265 56,117 143,153 143,863 150,070 38,826 38,826 8,157 283,189 283,189 5,792 53,143 53,143 270,443 - 49,464 49,464 - 110,000 795,000 7,785,000 4,245,000 56,950 311,425 1,139,216 1,308,344 633 1,979 7,853 16,387 - 34 11,738 17,104 6,682 61,155 - - 47,404 - 185,800 66,035 2,088,202 148,896 68,773 - 653,393 2,959,264 1,618,986 - - - - - 431,875 415,233 2,149,357 148,896 68,773 215,021 2,715,032 0 19,902,361 14,641,892 (1,896,199) (130,223) (68,773) (35,544) (634,985) 0 (8,061,676) (3,282,648) 2,026,245 - 43,755 2,070,000 1,775,000 - 1,305,000 - 4,970,000 - 39,174 35,552 - 158,044 42,080 - - 13,390 13,390 25,244 421,184 (1,514,667) 393,499 539,000 - - (130,645) 1,514,667 - - 2,065,419 0 0 1,340,552 347,684 0 7,604,933 2,381,324 169,220 (130,223) (68,773) 1,305,008 (287,301) 0 (456,743) (901,324) (138,667) 165,606 3,237,185 - 9,550,587 10,663,034 - - - (211,123) (138,667) 0 0 165,606 3,237,185 0 9,550,587 10,451,911 $30,553 ($130,223) ($68,773) $1,470,614 $2,949,884 $0 $9,093,844 $9,550,587 The accompanying notes are an integral part of these financial statements. 35 CITY OF ST. ANTHONY, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS For The Year Ended December 31, 2014 With Comparative Amounts For The Year Ended December 31, 2013 Statement 5 2014 2013 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) ($456,743) ($901,324) 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. 1,477,477 45,991 The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins and donations) is to decrease net position, as follows: (16,729) (58,447) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 21,881 50,767 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. 506,667 2,354,911 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. 94,581 90,698 Transfer out of governmental capital assets contributed to Enterprise Funds (497,781) (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. 47,745 (54,776) Change in net position of governmental activities (statement 2) $1,177,098 $179,582 The accompanying notes are an integral part of these financial statements. 36 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2014 With Comparatvie Totals For December 31, 2013 Assets: Current assets: Cash and cash equivalents Interfund loan receivable - current portion Receivables: Accounts Prepaid items Inventories - at cost Total current assets Noncurrent assets: Interfund loan receivable - noncurrent portion Capital assets: Land Construction in progress Buildings and structures Furniture, fixtures and equipment Distribution and collection system Software intangibles Total capital assets Less: Allowance for depreciation Net capital assets Total noncurrent assets Total assets Liabilities: Current liabilities: Accounts payable Contracts payable Due to other governmental units Salaries payable Accrued interest payable Refundable deposits Compensated absences payable - current portion Bonds and notes payable - current portion Total current liabilities Statement 6 Governmental Business -Type Activities Enterprise Funds Activities - 701/704 Water Internal Service Liquor 705 and Sewer Totals Fund 2014 2013 $461,439 $3,664,316 $4,125,755 $4,538,842 $26,972 - 125,620 125,620 131,195 - 1,999 499,366 501,365 457,845 - 11,679 14,423 26,102 22,976 - 869,602 - 869,602 797,400 - 1,344,719 4,303,725 5,648,444 5,948,258 26,972 889,906 889,906 895,526 325,362 5,653 5,653 5,653 - - 172,154 172,154 - - 1,875,328 2,007,955 3,883,283 3,883,283 - 418,325 1,036,970 1,455,295 1,441,075 - - 8,636,295 8,636,295 8,145,639 - 26,022 - 26,022 26,022 - 2,319,675 11,859,027 14,178,702 13,501,672 0 (1,033,971) (5,737,591) (6,771,562) (6,410,371) - 1,285,704 6,121,436 7,407,140 7,091,301 0 1,285,704 7,011,342 8,297,046 7,986,827 0 2,630,423 11,315,067 13,945,490 13,935,085 26,972 325,362 42,654 368,016 153,762 - - 152,642 152,642 - - 60,447 8,180 68,627 363,687 - 30,703 31,089 61,792 59,739 - - 11,083 11,083 12,000 - - 77,825 77,825 84,550 - 19,073 28,199 47,272 43,533 203,559 - 119,508 119,508 114,508 - 435,585 471,180 906,765 831,779 203,559 Noncurrent liabilities: Compensated absences payable - noncurrent portion 42,951 63,503 106,454 100,015 458,407 Bonds and notes payable - noncurrent portion - 1,251,440 1,251,440 1,370,948 - Other post employement benefits 38,525 35,754 74,279 61,431 - Total noncurrent liabilities 81,476 1,350,697 1,432,173 1,532,394 458,407 Total liabilities 517,061 1,821,877 2,338,938 2,364,173 661,966 Net position: Net investments in capital assets 1,285,704 4,750,488 6,036,192 5,605,845 - Unrestricted 827,658 4,742,702 5,570,360 5,965,067 (634,994) Total net position $2,113,362 $9,493,190 $11,606,552 $11,570,912 ($634,994) 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, 2014 With Comparatvie Totals For The Year Ended December 31, 2013 Governmental Business -Type Activities Enterprise Funds Activities - 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 in Transfers out Change in net position Net position - January 1 Net position - December 31 719,778 738,151 701/704 1,437,316 38,780 321,687 80,317 Water and 380,553 Internal 36,122 Liquor 705 Sewer Totals Service Fund - 620,470 620,470 2014 2013 Sales $6,078,039 $ - $6,078,039 $6,908,143 $ - Cost of sales (4,704,566) - (4,704,566) (5,281,745) - Gross profit 1,373,473 0 1,373,473 1,626,398 0 Operating revenues: (331,139) (132,340) 371,979 (38,780) Customer billings - 1,789,849 1,789,849 1,729,883 - Connection charges - 10,400 10,400 150,800 - Total operating revenues 0 1,800,249 1,800,249 1,880,683 0 Total gross profit and operating revenues 1,373,473 1,800,249 3,173,722 3,507,081 0 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 in Transfers out Change in net position Net position - January 1 Net position - December 31 719,778 738,151 1,457,929 1,437,316 38,780 321,687 80,317 402,004 380,553 - 36,122 195,017 231,139 174,583 - - 620,470 620,470 588,795 - 20,521 208,478 228,999 228,535 - 76,566 288,955 365,521 325,320 - 1,174,674 2,131,388 3,306,062 3,135,102 38,780 198,799 (331,139) (132,340) 371,979 (38,780) 5,881 105,631 111,512 51,593 225 - (22,275) (22,275) (29,102) - - (683) (683) (36,898) - 58,262 3,182 61,444 66,478 - 64,143 85,855 149,998 52,071 225 262,942 (245,284) 17,658 424,050 (38,555) 7,125 490,656 497,781 1,348,238 - - 15,645 15,645 - 86,300 (395,444) (100,000) (495,444) (539,000) - (125,377) 161,017 35,640 1,233,288 47,745 2,238,739 9,332,173 11,570,912 10,337,624 (682,739) $2,113,362 $9,493,190 $11,606,552 $11,570,912 ($634,994) The accompanying notes are an integral part of these financial statements. 38 STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2014 With Comparative Totals For The Year Ended December 31, 2013 Cash flows from operating activities Statement 8 Governmental Business -Type Activities Enterprise Funds Activities - 701/704 Water Internal Service Liquor 705 and Sewer Totals Fund 2014 2013 Receipts from customers and users $6,076,040 $1,758,728 $7,834,768 $8,791,589 $ - Payment to suppliers (4,978,554) (1,371,483) (6,350,037) (6,497,359) - Payment to employees (706,554) (726,296) (1,432,850) (1,407,851) (27,022) Miscellaneous revenue 58,262 3,182 61,444 66,478 $952,857 ($27,022) Net cash flows provided by (used in) operating activities 449,194 (335,869) 113,325 952,857 (27,022) Cash flows from noncapital financing activities: Transfer from other funds - 15,645 15,645 - 86,300 Transfer to General Fund (214,244) (50,000) (264,244) (380,800) - Transfer to Capital Project Funds (181,200) (50,000) (231,200) (158,200) - Change in interfund receivable/payable - - - - (32,531) Net cash flows provided by (used in) noncapital financing activities (395,444) (84,355) (479,799) (539,000) 53,769 Cash flows from capital and related financing activities: Acquisiton of capital assets 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 - (30,937) (30,937) - 11,195 11,195 1,098,029 41,623 41,623 67,730 - - - 1,489,964 - - - (36,898) - (110,000) (110,000) (1,545,000) - (28,383) (28,383) (48,458) 0 (116,502) (116,502) 1,025,367 0 5,881 64,008 69,889 (10,059) 225 59,631 (472,718) (413,087) 1,429,165 26,972 401,808 4,137,034 4,538,842 3,109,677 - $461,439 $3,664,316 $4,125,755 $4,538,842 $26,972 $198,799 ($331,139) ($132,340) $371,979 ($38,780) 58,262 3,182 61,444 66,478 76,566 288,955 365,521 325,320 (1,999) (41,521) (43,520) 2,763 - (3,918) 792 (3,126) 15,516 - (72,202) - (72,202) 35,094 - 193,686 (256,138) (62,452) 135,707 11,758 250,395 (4,730) 245,665 580,878 11,758 $449,194 ($335,869) $113,325 $952,857 ($27,022) Noncash investing, capital and financing activities: Liquor assets in the amount of $7,125 and $0 were contributed to the Water and Sewer Fund in 2014 and 2013, respectively. Water and Sewer System assets in the amount of $490,656 and $1,348,238 were contributed to the Water and Sewer Fund in 2014 and 2013, respectively. The accompanying notes are an integral part of these financial statements. 39 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUND -DEVELOPERS DEPOSIT December 31, 2014 With Comparative Totals For December 31, 2013 2014 Assets: Cash and investments ($1,090) Accounts receivable - net 1,090 Total assets $0 Liabilities: Deposits payable $ - The accompanying notes are an integral part of these financial statements. 40 Statement 9 2013 ($7,234) 7,234 $0 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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, 2014 The statement of activities demonstrates the degree to which the direct expenses of a given function or business -type activity is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or business -type activity. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or business -type activity; and, 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or business -type activity. Taxes and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. 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 measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the 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, 2014 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' and 361 Avenues, 35' Avenue between Belden Drive and Harding Street and miscellaneous sanitary sewer and stormwater repairs. The 2014 Street Improvement Project Fund accounts for the construction costs associated with the reconstruction of Penrod Lane between 36' and 37th Avenues, Edgmere Avenue between Penrod Lane and Chelmsford Road, and Wenhurst Avenue between Penrod Lane and Chelmsford Road. The 2015 Street Improvement Project Fund accounts for the construction costs associated with reconstruction of 3611 Avenue between Highcrest Road and Silver Lake Road and Chelmsford Road between 361 and 37' Avenue, the mill and overlay of Saint Anthony Boulevard between Highway 88 and Ridgeway and reconstruction of Coolidge area alley and certain stormwater improvements. The 2016 Street Improvement Project Fund accounts for the construction costs associated with the reconstruction of Stinson Boulevard between 371 Avenue and Silver Lane, sidewalk improvements, railroad crossing improvements and street lighting improvements. The Silver Lake Road Bond Fund was established to account for the debt service associated with the reconstruction and infrastructure improvements of Silver Lake 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. 43 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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. 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. 44 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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. 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, 2014 The following is a listing of the General Fund departments and Special Revenue Funds whose expenditures exceed budget appropriations: Major Fund: General Fund Finance Legal Planning and zoning General government buildings Police protection Fire protection Protective inspections Equipment maintenance Tree and weed care Nondepartmental Nonmajor Funds: Special Revenue Funds: Community Center Fund HRA Fund F. CASH AND INVESTMENTS Final Over Budget Actual Budget $256,894 $260,168 $3,274 103,750 162,670 58,920 46,825 59,320 12,495 $61,362 $68,357 6,995 3,047,461 3,084,925 37,464 916,117 1,006,141 90,024 81,623 162,236 80,613 357,089 368,026 10,937 39,588 40,042 454 28,200 59,265 31,065 178,867 192,816 13,949 140,612 143,153 2,541 Cash and investment balances from all funds, except the Liquor Fund, are pooled and invested to the extent available in authorized investments. Investment income is allocated to individual funds on the basis of the fund's equity in the cash and investment pool. The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund shown as interfund receivables in the advancing fund, and an interfund payable in the fund with the deficit, until adequate resources are received. These interfund balances are eliminated on the government -wide financial statements. Investments are stated at fair value, based upon quoted market prices, 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. 46 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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, 2014 are planned to be eliminated in 2015. 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. 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 47 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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 GOVERNMENTAL FUNDS 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. 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 48 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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, 2014, no interest was capitalized in connection with construction in progress. The City implemented GASB Statement No. 51, Accounting and Financial Reporting for 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 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. 49 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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 first use restricted resources, and then use unrestricted resources as they are needed. 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 Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are reported as an interfund loan receivable or payable which offsets the movement of cash between funds. All other interfund transactions are reported as transfers. 50 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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, 2013, from which the summarized information was derived. T. DEFERRED OUTFLOWS/INFLOWS 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 ou�flows 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. 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. 51 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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 ($33,711,150) difference is as follows: Bonds payable ($32,375,000) Accrued interest payable (418,372) Unamortized bond discounts 2,015 Unamortized bond premium (484,365) Other post -employment benefits (435,428) Net adjustment to reduce fund balance - total governmental funds to arrive at net position - governmental activities. ($33,711,150) 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 of governmental 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 $1,477,477 difference is as follows: Capital outlay Construction/acquisition costs Current expenditures capitalized Depreciation expense Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. 52 $424,622 2,959,264 59,162 (1,965,571) $1,477,477 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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 ($16,729) 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. ($16,729) Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. ($16,729) 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 $21,881 difference is as follows: Unavailable revenue - general property taxes: At December 31, 2013 At December 31, 2014 Unavailable revenue - tax increment taxes: At December 31, 2013 At December 31, 2014 Unavailable revenue - special assessments: At December 31, 2013 At December 31, 2014 Net adjustments to decrease net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. 53 ($117,036) 94,475 (40,539) 54,611 (1,758,678) 1,789,048 $21,881 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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 $506,667 difference is as follows: Debt issued or incurred: Issuance of general obligation bonds ($7,040,000) Premium on issued bonds (158,044) Principal repayments 7,785,000 Other post employment benefits (80,289) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. $506,667 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 $94,581 difference is as follows: Amortization of premiums, discounts 51,493 Accrued interest 43,088 Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. $94,581 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; 54 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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, 2014, 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. 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. 667.7 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 g) General obligation temporary bonds of the same governmental entity issued under section 429.091, subdivision 7; 469.178, subdivision 5; or 475.6 1, subdivision 6. As of December 31, 2014, the City had the following investments and maturities: Investment Maturities (in Years) Fair Less Over Investment Type Rating Value Than 1 1-5 6-10 10 Years Federal Home Loan Bank AAA $1,859,402 $1,859,402 $ $ - $ - REMIC NR 88,652 - 468 88,184 Money market NR 1,101,861 1,101,861 - - External investment pool - 4M Fund NR 4,663,964 4,663,964 Local governments AA - AAA 714,119 - 714,119 - Brokered certificates of deposit NR 4,902,883 1,686,875 3,067,035 148,973 US Treasury State and Local Government (SLGS) NR 1,290,049 1,290,049 - - Total $14,620,930 $10,602,151 $3,781,154 $149,441 $88,184 NR - Not Rated Total investments $14,620,930 Petty cash 5,200 Total cash and investments $14,626,130 Following is a reconciliation of the City's cash and investment balances as of December 31, 2014: Cash and investments $13,337,171 Cash and investments - fiduciary fund ($1,090) Funds held in trust 1,290,049 $14,626,130 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. 56 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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 118A.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 12.72% Note 3 RECEIVABLES Significant receivables balances not expected to be collected within one year of December 31, 2014 are as follows: 61FA Major Funds Street Improvement HRA HRA Silver Lake Nonmajor General Debt Service Debt Service Projects Road Bond Funds Total Special assessments receivable $ - $522,000 $ - $ $ - $1,074,000 $1,596,000 Delinquent property taxes 26,500 6,200 2,700 1,300 6,800 43,500 Delinquent Tax Increment - - - 46,300 - - 46,300 $26,500 $528,200 $2,700 $46,300 $1,300 $1,080,800 $1,685,800 61FA CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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: 58 Property Special Taxes Assessments TIF Total Major Fund: General Fund $57,460 $30 $ - $57,490 Street Improvement Debt Service 13,523 628,505 - 642,028 HRA Debt Service 5,913 - - 5,913 HRA Projects Fund - - 54,611 54,611 Silver Lake Road Bond 2,747 - - 2,747 Nonmajor Funds 14,832 1,160,513 - 1,175,345 Total unavailale revenue $94,475 $1,789,048 $54,611 $1,938,134 58 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 5 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2014 was as follows: Primary Government Governmental activities: Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings and improvements Land improvement Furniture, fixtures and equipment (including software) Streets Storm sewers Storm water Intangible assets Total capital assets, being depreciated Less accumulated depreciation/amortization for: Buildings and improvements Land improvement Furniture, fixtures and equipment Streets Storm sewers Storm water Total accumulated depreciation/amortization Total capital assets being depreciated - net Beginning Ending Balance Increases Decreases Transfers Balance $3,747,184 $ - $ - $ - $3,747,184 1,716,674 3,018,428 (1,157,952) (497,781) 3,079,369 5,463,858 3,018,428 (1,157,952) (497,781) 6,826,553 9,836,936 - 9,836,936 505,717 49,464 555,181 3,645,444 344,142 (90,502) - 3,899,084 31,441,542 997,271 - 32,438,813 428,469 - - 428,469 2,063,842 189,305 - 2,253,147 - 6,823 - - 6,823 47,921,950 1,587,005 (90,502) 0 49,418,453 3,455,885 294,013 - 3,749,898 151,267 43,925 195,192 2,412,971 268,278 (69,340) - 2,611,909 9,158,359 1,258,497 - 10,416,856 87,577 17,139 - 104,716 244,293 83,719 - 328,012 15,510,352 1,965,571 (69,340) 0 17,406,583 32,411,598 (378,566) (21,162) 0 32,011,870 Governmental activities capital assets - net $37,875,456 $2,639,862 ($1,179,114) ($497,781) $38,838,423 59 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Beginning Ending Primary Government Balance Increases Decrease Transfers Balance Business -type activities: Capital assets, not being depreciated: Land $5,653 $ - $ $ $5,653 CIP - 172,154 172,154 Total capital assets, not being depreciated 5,653 172,154 0 0 177,807 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 3,883,283 - - 3,883,283 1,441,075 11,425 (4,330) 7,125 1,455,295 26,022 - - - 26,022 8,145,639 - 490,656 8,636,295 13,496,019 11,425 (4,330) 497,781 14,000,895 1,873,113 89,345 1,962,458 732,640 51,332 (4,330) 779,642 16,047 5,205 21,252 3,788,571 219,639 - 4,008,210 6,410,371 365,521 (4,330) 0 6,771,562 7,085,648 (354,096) 0 497,781 7,229,333 $7,091,301 ($181,942) $0 $497,781 $7,407,140 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 60 $116,884 186,626 1,516,152 145,909 1,965,571 76,566 214,740 74,215 365,521 $2,331,092 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 CONSTRUCTION COMMITMENTS At December 31, 2014, the City had construction project contracts in progress. The commitments related to the remaining contract balances are summarized as follows: Project 2014 Street Improvements Fiber LAN Installation Project Note 6 LONG-TERM DEBT Contract Remaining Amount Commitment $2,021,154 $311,744 203,453 50,811 $362,555 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, 2014. 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. 61 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 GOVERNMENTAL ACTIVITIES As of December 31, 2014, the long-term debt of the financial reporting entity consisted of the following: G.O. Improvement Bonds: G.O. Improvement Bonds, Series 2009A G.O. Improvement Refunding Bonds, Series 2009B G.O. Improvement Bonds, Series 2010A G.O. Improvement Bonds, Series 2011A G.O. Improvement Refunding Bonds, Series 2011B G.O. Improvement Bonds, Series 2013B G.O. Improvement Bonds, Series 2014A Total improvement bonds G.O. Street Reconstruction Bonds: G.O. Street Reconstruction Bonds, Series 2008A G.O. Street Reconstruction Refunding Bonds, Series 2014C Tax Increment Revenue Bonds: Tax Increment Revenue Bonds, Series 2006B Tax Increment Revenue Refunding Bonds, Series 2014B Total tax increment revenue bonds G.O. Lease Revenue Refunding Bonds: G.O. Lease Revenue Refunding Bonds, Series 2012A G.O. Revenue Bonds: G.O. Storm Sewer Refunding Revenue Bonds, Series 2009A G.O. Tax Abatement Bonds: G.O. Tax Abatement Bonds, Series 2009A G.O. Tax Abatement Refunding Bonds, Series 2009B Total tax abatement bonds G.O. State Aid Bonds G. O. State Aid Street Refunding Bonds, Series 2009A G.O. Bonds: G.O. Refunding Bonds, Series 2012A Issuance premiums (discounts) Total -bonded indebtedness Compensated absences payable Total City indebtedness - governmental activities 62 Final Interest Issue Maturity Original Payable Rates Date Date Issue 12/31/14 3.00-4.00% 5/7/2009 2/1/2025 $2,630,000 $2,055,000 2.50-3.00% 12/16/2009 2/1/2018 1,335,000 645,000 2.25-3.625% 5/20/2010 2/1/2026 1,375,000 1,145,000 3.00-4.00% 4/12/2011 2/1/2027 2,955,000 2,395,000 0.40-2.00% 12/29/2011 2/1/2021 2,210,000 1,700,000 0.45-2.625% 4/23/2013 2/1/2029 1,775,000 1,775,000 2.00-3.30% 4/10/2014 2/1/2030 2,070,000 2,070,000 14,350,000 11,785,000 3.00-4.00% 6/5/2008 2/1/2024 1,910,000 1,390,000 2.00-3.00% 7/24/2014 2/1/2024 1,305,000 1,305,000 3,215,000 2,695,000 5.00-5.62% 8/1/2006 8/1/2031 4,975,000 4,255,000 2.00-3.50% 7/24/2014 2/1/2031 3,665,000 3,665,000 8,640,000 7,920,000 2.00-2.75% 4/25/2012 2/1/2024 3,995,000 3,415,000 3.00-4.00% 5/7/2009 2/1/2015 825,000 150,000 3.00-4-00% 5/7/2009 2/1/2025 1,335,000 1,115,000 2.50-3.00% 12/10/2009 2/1/2016 310,000 110,000 1,645,000 1,225,000 3.00-4.00% 5/7/2009 2/1/2015 385,000 60,000 2.00-2.75% 4/25/2012 2/1/2028 5,500,000 5,125,000 N/A 482,350 38,555,000 32,857,350 - 661,966 $38,555,000 $33,519,316 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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 Interest Maturity Original Payable Rates Date Date Issue 12/31/14 2.00-4.45% 4/16/2003 2/1/2024 Annual debt service requirements to maturity for long-term debt are as follows: Year Ending G.O. Improvement Bonds December 31 Principal Interest Governmental Activities G.O. Revenue Bonds Principal Interest $1,440,000 $1,330,000 N/A 40,948 1,440,000 1,370,948 - 153,726 1,440,000 1,524,674 $39,995,000 $35,043,990 G.O. Refunding Bonds Principal Interest 2015 $1,020,000 $316,119 $150,000 $2,250 $460,000 $103,550 2016 1,160,000 277,196 - - 470,000 94,250 2017 1,175,000 252,300 - - 485,000 84,700 2018 1,125,000 226,684 - - 490,000 74,950 2019 1,045,000 201,378 - - 500,000 65,050 2020 920,000 177,740 - - 515,000 54,900 2021 795,000 156,221 - - 530,000 44,450 2022 685,000 135,649 - - 545,000 33,564 2023 705,000 114,227 - - 320,000 24,458 2024 725,000 90,789 - - 155,000 19,155 2025 745,000 66,081 - - 160,000 15,333 2026 535,000 44,554 - - 160,000 11,252 2027 430,000 28,604 - - 165,000 6,944 2028 275,000 17,698 - - 170,000 2,337 2029 285,000 9,544 - - - - 2030 160,000 2,640 - - - - Total $11,785,000 $2,117,424 $150,000 $2,250 $5,125,000 $634,893 63 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Year Ending December 31 Lease Revenue Bonds Governmental Activities Tax Increment Revenue Bonds Principal Interest Principal Tntaract All Other General Obligation Bonds Principal Interest 2015 $290,000 $67,540 $245,000 $336,268 $1,585,000 $98,428 2016 300,000 61,640 315,000 324,494 275,000 64,239 2017 315,000 55,490 330,000 313,116 225,000 58,227 2018 325,000 49,090 355,000 300,966 230,000 52,776 2019 335,000 42,490 375,000 287,725 235,000 47,106 2020 345,000 35,690 405,000 273,613 245,000 41,036 2021 355,000 28,690 420,000 258,409 250,000 34,546 2022 370,000 21,348 450,000 241,166 260,000 27,456 2023 385,000 13,320 475,000 221,207 270,000 19,153 2024 395,000 4,542 500,000 199,962 280,000 9,800 2025 - - 530,000 177,575 125,000 2,500 2026 - - 565,000 153,763 - - 2027 - - 600,000 128,103 - - 2028 - - 635,000 100,803 - - 2029 - - 675,000 71,192 - - 2030 - - 710,000 38,981 - - 2031 - - 335,000 8,147 - - Total $3,415,000 $379,840 $7,920,000 $3,435,490 $3,980,000 $455,267 Business -Type Activities Year Ending Revenue Bonds December 31 Principal Interest 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 Total $1,330,000 $139,800 It is not practicable to determine the specific year for payment of long-term accrued compensated absences. 64 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2014, was as follows: Governmental activities: Bonds payable: G.O. improvement debt G.O. refunding bonds G.O. street reconstruction bonds G.O. revenue bonds G.O. state aid street bonds G.O. tax abatement bonds Tax increment revenue bonds G.O. lease revenue refunding 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 $ ($110,000) $1,330,000 Ending Due Within Balance Additions Reductions Balance One Year 40,948 4,508 1,485,456 (114,508) 1,370,948 $12,105,000 $2,070,000 ($2,390,000) $11,785,000 $1,020,000 5,500,000 - (375,000) 5,125,000 460,000 1,500,000 1,305,000 (110,000) 2,695,000 1,390,000 295,000 - (145,000) 150,000 150,000 120,000 (60,000) 60,000 60,000 1,355,000 - (130,000) 1,225,000 135,000 8,545,000 3,665,000 (4,290,000) 7,920,000 245,000 3,700,000 - (285,000) 3,415,000 290,000 33,120,000 7,040,000 (7,785,000) 32,375,000 3,750,000 375,799 158,044 (51,493) 482,350 51,767 33,495,799 7,198,044 (7,836,493) 32,857,350 3,801,767 650,208 359,868 (348,110) 661,966 203,559 $34,146,007 $7,557,912 ($8,184,603) $33,519,316 $4,005,326 $1,440,000 $ ($110,000) $1,330,000 $115,000 1,440,000 (110,000) 1,330,000 115,000 45,456 (4,508) 40,948 4,508 1,485,456 (114,508) 1,370,948 119,508 143,548 92,756 (82,578) 153,726 47,272 $1,629,004 $92,756 ($]97,086) $1,524,674 $166,780 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, 2014 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 2014B. Delinquent assessments receivable at December 31, 2014 totaled $7,647. 65 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 PLEDGED REVENUE Future revenue pledged for the payment of long-term debt is as follows: Bond Issue Use of Proceeds Revenue Pledged Remaining Principal and Interest Current Year Type Percentof Total Debt Service Debt service as a % of Net Revenues Term of Pledge Principal and Interest Paid Pledged Revenue Received 2009A Street Aid Street Refunding Refunding of 2000B State Aid Street bonds MSA allotments 100% N/A 2009-2015 $60,900 $62,700 $61,800 2009A Tax Abatement Emerald Park improvements Tax abatement revenue 100% N/A 2009-2025 $1,360,091 $115,076 $139,116 2009B Tax Abatement Refunding Refunding of 2001A Tax Abatement Bonds Tax abatement revenue 100% N/A 2009-2016 $112,750 $58,438 $42,439 2007A Road Improvements Street and storm sewer Special assessments 29% N/A 2007-2023 $ - $1,529,100 $16,873 2009A Road Improvements 2009 road reconstruction Special assessments 21% N/A 2009-2025 $2,502,524 $223,918 $25,457 2010A Road Improvements 2010 road construction Special assessments 9% N 3n1(,-2,)26 $1,387,796 $116,092 $5,013 2011A Road hnprovements 2011 road construction Special assessments 25% N/A 2011-2027 11166,138 $166,175 $34,018 2012A Road Improvements 2012 road construction Special assessments 25% N/A 2012-2028 $4,215,165 $458,274 $43,239 2013B Road Improvements 2013 road construction Special assessments 25% N/A 2013-2029 $2,053,905 $36,338 $31,691 2014A Road. Improvements 2014 road construction Special assessments 25% N/A 2014-2030 $2,608,110 $ - $166,404 2014C Road Improvements Refunding of 2008A Silver Lake Road improvements Tax levy 25% N/A 2014-2024 $1,484,014 $ - $ - 2009B Road Improvements Refunding Refunding of 2001B and 2002A Road Improvement Bonds Special. assessments 7% N/A 2009-2018 $916,619 $194,288 $18,797 2008A Street Reconstmetion Bonds Silver Lake Road improvements Tax levy 98% N/A 2008-2024 $1,417,513 $166,950 $59,215 2009A Storm Sewer Refimdings Revenue Refunding of2000A Storm Sewer Revenue Utility charges IOU°c N/A 2009-2015 $152,250 $151,675 $146,423 2006B TIF Redevelopment ofproject -a #3 and TIF 3-5 TIF 100% N/A 2006-2031 $6,662,809 $365,550 $ - 2007 TIF Redevelopment TIF 100% N/A 2007-2031 $ - $4,370,419 $1,117,824 2014B TIF Refimdmg 2007 TIF Bonds TIF 100% N/A 2015-2031 $4,692,681 $ - $ - 2013A G.O. Water/Sewer Revenue Refimding 2003B GO Water/ Sewer Revenue Bonds Charges for services 100% 82% 2013-2024 $1,469,800 $137,700 $1,800,249 2011A Road Improvements Refunding Refunding 2003A Street Improvement Bonds Special assessments 22% N/A 2011-2026 $718,156 $142,113 $20,586 2011B Road Improvements Refunding Refunding 2004A and 2005A Street Improvement Bonds Special assessments 25% N/A 2012-2020 $1,788,270 $283,880 $30,158 66 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 ADVANCE CROSSOVER REFUNDINGS 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. On July 24, 2014, the City issued $1,305,000 in General Obligation Refunding Bonds, Series 2014C with an average interest rate of 2.10% to advance refund $1,275,000 of outstanding 2008A Series Bonds with an average interest rate of 3.83% The net proceeds of $1,326,127 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, 2015. The City advance refunded the 2008A General Obligation Street Reconstruction Bonds to reduce its total debt service payments over the last ten years of the bond by $81,373 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) of $68,536. 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 $1,290,049 at December 31, 2014. Refunded Payment Bonds Refunding Date Total Bonds Debt Service Commitment Escrow Account City 2015 $1,417,513 $30,201 $1,290,389 $157,326 2016 - 163,275 - 163,275 2017 - 160,575 - 160,575 2018 - 162,825 - 162,825 2019 - 160,025 - 160,025 2020 - 162,175 - 162,175 2021 - 159,275 - 159,275 2022 - 161,138 - 161,138 2023 - 162,125 - 162,125 2024 - 162,400 - 162,400 Total $1,417,513 $1,484,014 $1,290,389 $1,611,139 67 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 CURRENT REFUNDING On July 24, 2014, the City issued the $3,665,000 General Obligation Tax Increment Revenue Refunding Bonds, Series 2014B with an average interest rate of 3.02% to refund the 2015 through 2031 maturities aggregating $4,045,000 in principal amount of the City's $4,640,000 General Obligation Tax Increment Revenue Bonds, Series 2007 with an average interest rate of 4.98%, dated April 17, 2007. Net proceeds of $3,671,077 along with $379,750 of City funds were used to retire all outstanding principal of the refunded bonds on August 1, 2014. The City refunded the bonds to reduce its total debt service payments over the seventeen years by $1,060,281 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) of $855,598. 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.moera.org, by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by calling (651) 296-7460 or 1-800-652-9026. 68 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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 2014. PEPFF members were required to contribute 9.6% of their annual covered salary in 2014. The City was required to contribute the following percentages of annual covered payroll in 2014: 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, 2014, 2013 and 2012 were $144,654, $143,131, and $141,004, respectively. The City's contributions to the Public Employees Police and Fire Fund for the years ending December 31, 2014, 2013 and 2012 were $384,556, $350,488, and $339,281, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. Contribution rates will increase on January 1, 2015 in the Coordinated Plan (6.5% for members and 7.5% for employees) and in the Police and Fire Fund (10.8% for members and 16.2% for employers). 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. 69 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Total contributions made by the City during fiscal year 2014 were: Amount Employees Employer Percentage of Covered Payroll Employees Employer PEDCP $1,763 $1,763 5.00% 5.00% D. SINGLE EMPLOYER PERS Required Rates PLAN DESCRIPTION — ST. ANTHONY FIREFIGHTERS RELIEF ASSOCIATION 5.00% 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. V17 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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 $45,251, is recorded as a revenue and an expenditure in the City's 2014 financial statements. The City's annual pension cost for 2014 and related information for the plan is as follows: Annual pension cost $51,251 Contributions made: City $45,251 State aid $6,000 Actuarial valuation date 12/31/14 Actuarial cost method Entry age normal Amortization method Level dollar closed Remaining amortization period: Normal cost 20 years Prior service cost 10 years Asset valuation method Fair Value 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 71 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Three year trend information (information for December 31, 2014 is not available): Three Year Trend Information REQUIRED SUPPLEMENTARY INFORMATION — SCHEDULE OF FUNDING PROGRESS Actuarial Annual Percentage Net Year Pension of APC Pension Ending Cost (APC) Contributed Obligation 12/31/2014 12/31/2014 $51,251 100% - 12/31/2013 51,672 100% - 12/31/2012 39,235 100% - REQUIRED SUPPLEMENTARY INFORMATION — SCHEDULE OF FUNDING PROGRESS Actuarial Actuarial Actuarial Valuation Value of Accrued Date Assets Liability 12/31/2014 $897,780 $768,412 12/31/2013 899,818 745,576 12/31/2012 901,525 862,540 Assets in Excess of Pension (Unfunded) Benefit Accrued Funded Per Year Liability Ratio of Service $129,368 116.80% $3,000 154,242 120.69% 2,800 38,985 104.52% 2,800 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 7, 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 term 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. 72 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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, 2014 through December 31, 2014 monthly premiums paid for Police or Firefighters disabled in the line of duty are: Employee Employee Plus Spouse Aware Plan: $30 Copay $758 $1,592 $30 Copay 90/10% coinsurance 722 1,516 $500 Deductible - $25 copay 670 1,407 $2500 HDHP/HSA 500 1,051 $4000 HDHP/HSA 457 959 Accord Plan: $30 Copay 729 1,531 $30 Copay 90/10% coinsurance 694 1,457 $500 Deductible - $25 copay 644 1,352 $2500 HDHP/HSA 482 1,010 $4000 HDHP/HSA 439 923 73 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 C. PARTICIPANTS As of the actuarial valuation dated January 1, 2014, participants consisted of: Retirees and beneficiaries currently purchasing health insurance through the City Disabled police and firefighters Active employees Total Participating employers D. FUNDING POLICY 58 62 1 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, 2014, was calculated as follows: Annual required contribution (ARC) $103,504 Interest on net OPEB obligation 18,746 Adjustment to ARC (15,727) Annual OPEB cost 106,523 Contributions made during the year (13,386) Increase (decrease) in net OPEB obligation 93,137 Net OPEB obligation - beginning of year 416,570 Net OPEB obligation - end of year $509,707 For the governmental activities, the net OPEB obligation is generally liquidated by the General Fund. 74 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 The City had an actuarial valuation performed for the plan as of January 1, 2014 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, 2014. The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for 2012, 2013 and 2014 was as follows: F. FUNDED STATUS AND FUNDING PROGRESS 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 Percentage of Fiscal Year Annual OPEB Employer Annual OPEB Cost Net OPEB Ended Cost Contributions Contributed Obligation Funded Covered Percentage of Valuation December 31, 2012 $98,886 $13,152 13% $331,640 December 31, 2013 102,892 17,962 17% 416,570 December 31, 2014 106,523 13,386 13% 509,707 F. FUNDED STATUS AND FUNDING PROGRESS 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: *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, 2014 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 al 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, 2014 $0 $869,401 $869,401 0.00% $3,834,128 22.68% *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, 2014 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 al CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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 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, 2014 are as follows: Fund Receivable Payable Major Funds: General Fund HRA Projects 2015 Street Improvement Project Fund 2016 Street Improvement Project Fund Nonmajor Funds: HRA Fund Silver Lake Village Park Building Improvement Fund Total $639,128 $ - - 121,354 114,220 52,601 156,796 160,352 33,805 $639,128 $639,128 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 Nonmajor funds: Revolving Improvement Fund Total Receivable Payable Purpose $1,015,526 $ - 959,326 Provide financing for pay off of Fannie Mae loan 56,200 Provide financing for Arbors Alley Project $1,015,526 $1,015,526 76 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Interfund transfers: $130,223 2016 Street Improvement Fund 68,773 Nonmajor funds: HRA Fund 159,775 Silver Lake Village Park 171,550 Building Improvement Fund 33,805 Transfer In 634,994 Governmental Activities Business -type Major Funds Major Fund HRA Street Nonmajor Internal General Debt Improvement Governmental Service Water and Transfer out Fund Service Debt Service Fund Fund Sewer Fund Total Governmental activities: General Fund $ $ - $ $64,654 $86,300 $ $150,954 HRA Projects 1,068,700 - - 1,068,700 Street Improvement Projects - 152,271 152,271 HRA Debt Service Fund 1,767 - - 1,767 2012 Street Improvement Project - 10,330 10,330 Nonmajor 115,000 15,645 130,645 Business -type activities: Water and Sewer Fund 50,000 50,000 - 100,000 Liquor Fund 214,244 181,200 - 395,444 Total transfers $264,244 $1,070,467 $152,271 $421,184 $86,300 $15,645 $2,010,111 All of the 2014 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, 2014 as follows: Fund Amount Major funds: 2015 Street Improvement Fund $130,223 2016 Street Improvement Fund 68,773 Nonmajor funds: HRA Fund 159,775 Silver Lake Village Park 171,550 Building Improvement Fund 33,805 Internal Service Fund 634,994 These deficits will be eliminated in certain situations by; increased levy, bond proceeds, charges to other funds or fund transfers. 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. V&A CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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 significant 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, 2014. 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. 78 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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, 2014. 79 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 13 FUND BALANCE A. CLASSIFICATIONS At December 31, 2014, a summary of the governmental fund balance (deficit) classifications are as follows: Nonspendable: Prepaid items Inventory Total nonspendable Restricted for: Tax increment Public safety Debt service Total restricted Committed to: Community center operations/maintenance Recycling Revolving loan program Total committed Assigned to: Community center operations/maintenance Street improvements/rehabilitiation Storm water improvements Development purposes Public safety Parks and recreation Total assigned Unassigned Total Street Improvement HRA Debt Silver Lake Debt HRA General Fund Service Road Bond Service Projects $84,948 $ $ $ $ 6,188 91,136 0 0 0 0 1,894,041 1,620,435 1,470,614 623,126 - 0 1,620,435 1,470,614 623,126 1,894,041 71,513 0 0 0 0 71,513 0 0 0 0 2,384,345 - (1,842,807) $2,475,481 $1,620,435 $1,470,614 $623,126 $122,747 80 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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, 2014, the unassigned fund balance of the General Fund was 44% of the subsequent year's budgeted expenditures. 81 2014 2015 2016 Street Street Street Improvement Improvement Improvement Project Project Project Other Funds Total Nonspendable: Prepaid items $ $ $ $1,631 $86,579 Inventory - - 6,188 Total nonspendable 0 0 0 1,631 92,767 Restricted for: Tax increment - - 1,894,041 Public safety 23,471 23,471 Debt service 1,996,027 5,710,202 Total restricted 0 0 0 2,019,498 7,627,714 Committed to: Community center operations/maintenance 999 999 Recycling - 5,668 5,668 Revolving loan program - 71,513 Total committed 0 0 0 6,667 78,180 Assigned to: Community center operations/maintenance 13,998 13,998 Street improvements/rehabilitiation 30,553 - - 189,115 219,668 Storm water improvements - 76,646 76,646 Other capital improvements 810,019 810,019 Public safety 10,610 10,610 Parks and recreation - 187,642 187,642 Total assigned 30,553 0 1,288,030 1,318,583 Unassigned - (130,223) (68,773) (365,942) (23,400) Total $30,553 ($130,223) ($68,773) $2,949,884 $9,093,844 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, 2014, the unassigned fund balance of the General Fund was 44% of the subsequent year's budgeted expenditures. 81 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 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, 2014, 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, 2014 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: 82 2014 Annual Lease Initial Lease Adjustment Expiration Automatic Lessee Amount Factor Date Renewals Sprint Spectrum $24,706 4% 2/27/18 2-5 year terms Clearwire Communications 24,000 4% 7/17/14 5-5 year terms Verizon Wireless 24,300 3% 8/1/18 4-5 year terms 82 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Future minimum lease payments are as follows: Sprint Spectrum Clearwire Verizon Communications Wireless 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 $477,460 $1,156,407 $791,935 83 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 16 LEGAL DEBT MARGIN 33,705,000 34,560,000 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 2014 and 2013 is computed as follows: December 31, December 31, (1,735,000) 2014 2013 Market value: Tax abatement bonds (1,225,000) Ramsey County $244,282,700 $243,533,600 Hennepin County 429,940,030 431,040,057 Total market value 674,222,730 674,573,657 Debt limit percentage 3.00% 3.00% Debt limit 20,226,682 20,237,210 Amount of debt applicable to debt limit Total bonded debt 33,705,000 34,560,000 Less nonapplicable debt: Revenue bonds (water, sewer, storm sewer) (1,480,000) (1,735,000) State aid street bonds (60,000) (120,000) Tax abatement bonds (1,225,000) (1,355,000) Improvement bonds (16,910,000) (17,605,000) Tax increment bonds (7,920,000) (8,545,000) Cash and investments in applicable debt service funds (2,078,937) (749,869) Total amount of debt applicable to debt limit 4,031,063 4,450,131 Legal debt margin $16,195,619 $15,787,079 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. 68 Accounting and Financial Reporting for 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. 68 requires governments providing defined benefit pensions to recognize their long-term obligation for pension benefits as a liability for the first time. 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. Statement No. 72 Fair Value Measurement and Application. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2015. The effect these standards may have on future financial statements is not determinable at this time, but it is expected that Statements No. 68 and No. 71 will have a material impact. 84 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 18 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: Major Governmental Governmental Fund Activities HRA Projects Fund balance/net position - January 1, 2013, as previously restated $14,378,700 $716,403 Prior period adjustments: Pay -as -you go TIF Fund balance/net position - January 1, 2013, as restated Note 19 SUBSEQUENT EVENTS (211,123) (211,123) $14,167,577 $505,280 The City issued the $2,580,000 G.O. Bonds, Series 2015A on May 19, 2014 to fund various public improvements within the City. 85 - This page intentionally left blank - 86 REQUIRED SUPPLEMENTARY INFORMATION 87 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2014 With Comparative Totals For The Year Ended December 31, 2013 Statement 10 Page 1 of 5 Expenditures: General government: Mayor and council: Current: Personal services 37,541 37,541 37,938 (397) 34,420 Other services and charges 45,850 45,850 42,857 2,993 33,270 Total mayor and council 83,391 83,391 80,795 2,596 67,690 88 2014 2013 Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues: General property taxes $3,276,868 $3,276,868 $3,551,089 $274,221 $3,381,333 Licenses and permits 203,547 203,547 351,102 147,555 342,390 Intergovernmental: Federal: Police grants 30,750 30,750 48,836 18,086 127,770 State: Local governement aid/ MVHC 442,967 442,967 442,967 - 43 Police aid 143,325 143,325 181,935 38,610 172,796 Fire aid 46,672 46,672 45,251 (1,421) 45,672 Municipal state aid - street maintenance 73,682 73,682 76,749 3,067 73,682 PERA aid 7,197 7,197 7,197 - 7,197 Other - - 4,000 4,000 - County: Street maintenance 22,223 22,223 19,723 (2,500) 19,723 Other 8,800 8,800 57,674 48,874 71,215 Local: School District DARE 14,500 14,500 15,281 781 14,500 Other 18,350 18,350 - (18,350) 6,756 Total intergovernmental 808,466 808,466 899,613 91,147 539,354 Charges for services: Police contracts 1,234,162 1,234,162 1,234,162 - 1,204,060 Cable franchise fees 102,672 102,672 109,009 6,337 104,089 Antenna rental - water tower 76,664 76,664 74,505 (2,159) 67,281 Other 175,392 175,392 162,985 (12,407) 170,911 Total charges for services 1,588,890 1,588,890 1,580,661 (8,229) 1,546,341 Fines and forfeits 110,250 110,250 119,035 8,785 118,253 Contributions and donations 500 500 11,800 11,300 2,700 Other revenue: Investment income 5,500 5,500 29,840 24,340 (7,315) Refunds and reimbursments 15,000 15,000 9,130 (5,870) 21,183 Miscellaneous - other 47,000 47,000 73,420 26,420 46,732 Total other revenue 67,500 67,500 112,390 44,890 60,600 Total revenues 6,056,021 6,056,021 6,625,690 569,669 5,990,971 Expenditures: General government: Mayor and council: Current: Personal services 37,541 37,541 37,938 (397) 34,420 Other services and charges 45,850 45,850 42,857 2,993 33,270 Total mayor and council 83,391 83,391 80,795 2,596 67,690 88 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2014 With Comparative Totals For The Year Ended December 31, 2013 Statement 10 Page 2 of 5 89 2014 2013 Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) General government: (continued) Public relations/cable: Current: Personal services $7,673 $7,673 $6,312 $1,361 $6,005 Supplies 600 600 673 (73) 1,350 Other services and charges 28,241 28,241 28,804 (563) 27,119 Capital outlay 2,500 2,500 - 2,500 8,157 Total public relations/cable 39,014 39,014 35,789 3,225 42,631 General management: Current: Personal services 83,222 83,222 80,390 2,832 83,959 Supplies 1,000 1,000 526 474 1,044 Other services and charges 40,825 40,825 43,521 (2,696) 36,746 Total general management 125,047 125,047 124,437 610 121,749 Elections: Current: Personal services 25,031 25,031 24,543 488 18,978 Supplies 2,100 2,100 2,256 (156) 1,536 Other services and charges 4,575 4,575 2,944 1,631 3,121 Total elections 31,706 31,706 29,743 1,963 23,635 Finance: Current: Personal services 119,189 119,189 125,379 (6,190) 114,433 Supplies 9,000 9,000 8,867 133 8,119 Other services and charges 128,705 128,705 125,922 2,783 122,575 Total finance 256,894 256,894 260,168 (3,274) 245,127 Assessing: Current: Personal services 3,429 3,429 3,423 6 3,324 Supplies 175 175 166 9 166 Other services and charges 49,000 49,000 46,501 2,499 46,270 Total assessing 52,604 52,604 50,090 2,514 49,760 Legal: Current: Contracted services 103,750 103,750 162,670 (58,920) 72,739 Planning and zoning: Current: Personal services 1,100 1,100 1,199 (99) 1,075 Supplies 125 125 696 (571) 73 Other services and charges 45,600 45,600 57,425 (11,825) 63,712 Total planning and zoning 46,825 46,825 59,320 (12,495) 64,860 89 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2014 With Comparative Totals For The Year Ended December 31, 2013 Budgeted Amounts Original Final Expenditures: (continued) General government: (continued) General government buildings: Current: Other services and charges $61,362 $61,362 Total general government buildings 61,362 61,362 Total general government 800,593 800,593 Public safety: 1,840 60,190 Civil defense: 1,325 418 Current: 2,503 1,379 Personal services 60,359 60,359 Supplies 1,450 1,450 Other services and charges 4,800 4,800 Total civil defense 66,609 66,609 Police protection: 3,084,925 (37,464) Current: 864,977 Personal services 2,757,534 2,757,534 Supplies 119,118 119,118 Other services and charges 170,809 170,809 Total police protection 3,047,461 3,047,461 Fire protection: Current: Personal services 835,592 835,592 Supplies 31,400 31,400 Other services and charges 49,125 49,125 Total fire protection 916,117 916,117 Protective inspections: Current: Personal services 11,317 11,317 Supplies 175 175 Other services and charges 70,131 70,131 Total protective inspections 81,623 81,623 DARE program: Current: Personal services 11,508 11,508 Supplies 2,500 2,500 Total DARE program 14,008 14,008 rl 2014 Actual Amounts $68,357 68,357 871,369 Variance with Final Budget ($6,995) (6,995) (70,776) Statement 10 Page 3 of 5 2013 Actual Amnnnta $65,394 65,394 753,585 58,519 1,840 60,190 125 1,325 418 2,297 2,503 1,379 60,941 5,668 61,987 2,809,761 (52,227) 2,654,596 118,973 145 117,269 156,191 14,618 221,386 3,084,925 (37,464) 2,993,251 864,977 (29,385) 818,080 30,193 1,207 36,277 110,971 (61,846) 86,005 1,006,141 (90,024) 940,362 11,414 278 150,544 162,236 (97) (103) (80,413) (80,613) 10,558 58 143,287 153,903 11,123 385 10,120 2,782 (282) 2,815 13,905 103 12,935 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2014 With Comparative Totals For The Year Ended December 31, 2013 Statement 10 Page 4 of 5 Public works: 2014 2013 Street maintenance: Budgeted Amounts Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) Personal services 371,435 371,435 371,650 (215) Public safety: (continued) Supplies 26,918 26,918 11,644 15,274 Animal control: Other services and charges 108,524 108,524 113,331 (4,807) Current: Total street maintenance 506,877 506,877 496,625 10,252 Supplies $100 $100 $59 $41 $63 Contracted services 3,000 3,000 26 2,974 1,070 Total animal control 3,100 3,100 85 3,015 1,133 Total public safety 4,128,918 4,128,918 4,328,233 (199,315) 4,163,571 Public works: Street maintenance: Current: Personal services 371,435 371,435 371,650 (215) 395,646 Supplies 26,918 26,918 11,644 15,274 21,061 Other services and charges 108,524 108,524 113,331 (4,807) 112,416 Total street maintenance 506,877 506,877 496,625 10,252 529,123 Equipment maintenance: Current: Personal services 78,219 78,219 77,652 567 68,747 Supplies 246,770 246,770 243,005 3,765 242,497 Other services and charges 32,100 32,100 47,369 (15,269) 29,003 Total equipment maintenance 357,089 357,089 368,026 (10,937) 340,247 Tree and weed care: Current: Personal services 35,793 35,793 35,542 251 41,147 Other services and charges 3,795 3,795 4,500 (705) 3,076 Total tree and weed care 39,588 39,588 40,042 (454) 44,223 Total public works 903,554 903,554 904,693 (1,139) 913,593 Parks and recreation: Park maintenance: Current: Personal services 159,555 159,555 156,217 3,338 126,806 Supplies 7,609 7,609 7,630 (21) 1,867 Other services and charges 37,628 37,628 32,455 5,173 35,704 Total park maintenance 204,792 204,792 196,302 8,490 164,377 Recreation: Current: Community services 52,176 52,176 52,176 - 52,176 Total parks and recreation 256,968 256,968 248,478 8,490 216,553 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2014 With Comparative Totals For The Year Ended December 31, 2013 Expenditures: (continued) Nondepartmental: Personal services Supplies Insurance deductible costs Total nondepartmental Total expenditures Revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - January 1 Fund balance - December 31 Budgeted Amounts Original Final 2014 Actual Amounts Statement 10 Page 5 of 5 2013 Variance with Actual Final Budget Amounts 27,800 27,800 36,473 (8,673) 32,929 400 400 98 302 478 - - 22,694 (22,694) 22,710 28,200 28,200 59,265 (31,065) 56,117 6,118,233 6,118,233 6,412,038 (293,805) 6,103,419 (62,212) (62,212) 213,652 275,864 (112,448) 264,244 264,244 264,244 - 380,800 (175,565) (175,565) (150,954) 24,611 (95,150) 88,679 88,679 113,290 24,611 285,650 $26,467 $26,467 326,942 $300,475 173,202 V► 2,148,539 1,975,337 $2,475,481 $2,148,539 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE NOTE TO RSI December 31, 2014 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. ►� c CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS OTHER POST EMPLOYMENT BENEFITS PLAN For The Year Ended December 31, 2014 Statement 11 MIX (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, 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% January 1, 2014 - 869,401 0.00% 869,401 3,834,128 22.68% MIX Isle] LyiI I IzIIki[r1_P►1111zI7►y/1bill-JlzIs]kiI►viLl1L67:a1I1►117J1►L1kiINF—1" 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). CITY OF ST. ANTHONY, MINNESOTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2014 With Comparative Totals For December 31, 2013 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 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: 1,631 - - 1,631 Totals Restricted Special Debt Capital Nonmajor Governmental Funds Revenue Service Project 2014 2013 $73,207 $1,982,985 $1,323,686 $3,379,878 $3,335,121 - - - - 416 - - 160,656 160,656 435,831 - - - - 99,259 1,631 - - 1,631 49 2,284 11,881 667 14,832 21,196 1,191 13,042 402 14,635 10,051 - 1,126,904 33,609 1,160,513 991,331 $78,313 $3,134,812 $1,519,020 $4,732,145 $4,893,254 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: 1,631 - - 1,631 49 Restricted Accounts payable $18,896 $ - $18,236 $37,132 $94,916 Contracts payable - - 158,084 158,084 21,683 Interfund payable 156,796 - 194,157 350,953 244,677 Deposits payable - - - - 339,000 Interfund loan payable - - 56,200 56,200 61,820 Due to other governmental units 12 - - 12 825 Salaries payable 4,535 - - 4,535 4,095 Total liabilities 180,239 0 426,677 606,916 767,016 Deferred inflows of resources: Unavailable revenue 2,284 1,138,785 34,276 1,175,345 1,012,528 Total deferred inflows of resources 2,284 1,138,785 34,276 1,175,345 1,012,528 Fund balance (deficit): Nonspendable 1,631 - - 1,631 49 Restricted 23,471 1,996,027 - 2,019,498 2,002,737 Committed 6,667 - - 6,667 33,015 Assigned 24,608 - 1,263,422 1,288,030 1,253,470 Unassigned (160,587) - (205,355) (365,942) (175,561) Total fund balance (deficit) (104,210) 1,996,027 1,058,067 2,949,884 3,113,710 Total liabilities, deferred inflows of resources, and fund balance $78,313 $3,134,812 $1,519,020 $4,732,145 $4,893,254 r'J71 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, 2014 With Comparative Totals For The Year Ended December 31, 2013 Expenditures: Totals Current: Special Debt Capital Nonmajor Governmental Funds Revenue Service Project 2014 2013 Revenues: Public safety 9,326 - 20,004 29,330 General property taxes $153,194 $844,811 $49,732 $1,047,737 $1,086,244 Intergovernmental 17,383 92,706 361,104 471,193 199,885 Special assessments - 138,828 8,132 146,960 206,855 Charges for services 128,385 146,423 41,151 315,959 490,016 Fines and forfeits 7,549 - - 7,549 11,110 Investment income 1,064 20,463 24,183 45,710 (5,655) Contributions and donations - - 33,840 33,840 13,434 Refunds and reimbursements - - 3,428 3,428 16,103 Other 6,980 - 691 7,671 173,505 Total revenues 314,555 1,243,231 522,261 2,080,047 2,191,497 Expenditures: Current: General government - - 35,459 35,459 74,488 Public safety 9,326 - 20,004 29,330 11,183 Public works - - 94,354 94,354 129,283 Parks and recreation 192,816 - 21,763 214,579 204,273 Housing and development 143,153 - - 143,153 135,607 Capital outlay: General government - - 38,826 38,826 - Public safety - - 283,189 283,189 5,792 Public works - - 53,143 53,143 270,443 Parks and recreation - - 49,464 49,464 - Debt service: Principal - 795,000 - 795,000 755,000 Interest - 308,175 3,250 311,425 369,240 Paying agent fees - 1,979 - 1,979 4,114 Professional service - 11,738 - 11,738 2,703 Construction/acquistion costs - - 653,393 653,393 69,783 Total expenditures 345,295 1,116,892 1,252,845 2,715,032 2,031,909 Revenues over (under) expenditures (30,740) 126,339 (730,584) (634,985) 159,588 Other financing sources: Bonds issued - 43,755 - 43,755 22,057 Sale of capital assets - - 13,390 13,390 25,244 Transfers in 64,654 10,330 346,200 421,184 571,122 Transfers out (40,645) - (90,000) (130,645) (317,772) Total other financing sources 24,009 54,085 269,590 347,684 300,651 Net change in fund balance (6,731) 180,424 (460,994) (287,301) 460,239 Fund balance (deficit) - January 1 (97,479) 1,815,603 1,519,061 3,237,185 2,653,471 Fund balance (deficit) - December 31 ($104,210) $1,996,027 $1,058,067 $2,949,884 $3,113,710 Reconciliation of beginning fund balance to prior year ending fund balance: Less: prior year ending fund balance for funds reported as major in current year: $3,113,710 Silver Lake Road Bond Fund 365 (165,606) Add: prior year ending fund balance for funds reported as nonmajor in current year: 2013 Street Improvement Project Fund 519 289,081 Current year beginning fund balance $3,237,185 WE 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 was established to account for revenues and expenditures related to training provided to police and fire personnel. ae - This page intentionally left blank - 100 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2014 With Comparative Totals For December 31, 2013 Statement 14 101 Fire Community Police Education / Center Fund Forfeiture Recycling HRA Fund Training Totals Nonmajor Special 601 Fund 230 Fund 225 301 Fund 240 Revenue Funds 2014 2013 Assets Cash and investments $33,458 $31,172 $5,668 $ $2,909 $73,207 $82,356 Accrued interest - - - - - - 416 Due from other governments - - - - - 339,000 Accounts receivable - - - - - 99,259 Prepaid items 819 - 812 - 1,631 49 Property taxes receivable: Delinquent - - - 2,284 - 2,284 2,992 Due from county - - - 1,191 1,191 1,345 Total assets $34,277 $31,172 $5,668 $4,287 $2,909 $78,313 $525,417 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $17,756 $ $ - $1,140 $ - $18,896 $32,120 Interfund payable - - - 156,796 - 156,796 244,677 Deposits Payable - - - - - 339,000 Due to other governmental units 12 - - - - 12 12 Salaries payable 693 - 3,842 - 4,535 4,095 Total liabilities 18,461 0 0 161,778 0 180,239 619,904 Deferred inflows of resources: Unavailable revenue - - 2,284 2,284 2,992 Total deferred inflows of resources 0 0 0 2,284 0 2,284 2,992 Fund balance (deficit): Nonspendable 819 - - 812 - 1,631 49 Restricted - 23,471 - - - 23,471 21,528 Committed 999 - 5,668 - - 6,667 33,015 Assigned 13,998 7,701 - - 2,909 24,608 17,745 Unassigned - - (160,587) - (160,587) (169,816) Total fund balance (deficit) 15,816 31,172 5,668 (159,775) 2,909 (104,210) (97,479) Total liabilities, deferred inflows of resources, and fund balance $34,277 $31,172 $5,668 $4,287 $2,909 $78,313 $525,417 101 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, 2014 With Comparative Totals For The Year Ended December 31, 2013 Revenues: General property taxes Intergovernmental: Local - other Charges for services: Administrative fees Rental receipts Fines and Forfeits Investment income Refunds and reimbursements Other Total revenues Expenditures: Current: General government Public safety Parks and recreation Housing and development Capital outlay: Public safety Total expenditures Revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Net change in fund balance Fund balance (deficit) - January 1 Fund balance (deficit) - December 31 102 Fire Community Police Education / Center Fund Forfeiture Recycling HRA Fund Training Totals Nonmajor Special 601 Fund 230 Fund 225 301 Fund 240 Revenue Funds 2014 2013 $ - $ - $ - $153,194 $ - $153,194 $148,665 - - 17,383 - - 17,383 17,340 - - - - 3,385 3,385 7,723 125,000 - - - - 125,000 125,000 - 7,549 - - 7,549 11,110 439 488 76 - 61 1,064 5,295 - - - - - 675 6,980 - - - 6,980 3,862 132,419 8,037 17,459 153,194 3,446 314,555 319,670 - - - - - - 25,359 - 5,606 - - 3,720 9,326 11,183 192,816 - - - 192,816 172,248 - - - 143,153 - 143,153 135,607 - - - - - - 5,792 192,816 5,606 0 143,153 3,720 345,295 350,189 (60,397) 2,431 17,459 10,041 (274) (30,740) (30,519) 64,654 - - - - 64,654 95,150 (25,000) - (15,645) - - (40,645) (145,000) (20,743) 2,431 1,814 10,041 (274) (6,731) (80,369) 36,559 28,741 3,854 (169,816) 3,183 (97,479) (17,110) $15,816 $31,172 $5,668($159,775) $2,909 ($104,210) ($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 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. 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 39th 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. 2014 Street Improvement Bond Fund was established to account for the debt service associated with the reconstruction of Penrod Lane between 36th and 37th Avenues, Edgmere Avenue between Penrod Lane and Chelmsford Road, and Wenhurst Avenue between Penrod Lane and Chelmsford Road. 103 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR DEBT SERVICE FUNDS December 31, 2014 With Comparative Totals For December 31, 2013 Assets Cash and investments Property taxes receivable: Delinquent Due from county Special assessments receivable Total assets Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable Total liabilities Deferred inflows of resources: Unavailable revenue Total deferred inflows of resources Fund balance: Restricted Total liabilities, deferred inflows of resources, and fund balance 2009 Street Storm Water State Aid Street Tax Abatement Improvement $142,768 $66,106 $225,903 $376,963 - - 2,300 2,850 - - 1,137 7,346 - - - 149,534 $142,768 $66,106 $229,340 $536,693 104 0 0 0 0 - - 2,300 152,384 0 0 2,300 152,384 142,768 66,106 227,040 384,309 $142,768 $66,106 $229,340 $536,693 2010 Street 2011 Street 2012 Street 2013 Street 2014 Street Improvement Improvement Improvement Improvement Improvement Statement 16 Totals Nonmajor Debt Service Funds $156,673 $410,681 $332,467 $227,378 $44,046 $1,982,985 $1,972,950 1,694 2,128 1,881 1,028 - 11,881 17,492 1,493 1,055 1,287 724 - 13,042 8,260 41,648 142,038 327,501 188,558 277,625 1,126,904 951,694 $201,508 $555,902 $663,136 $417,688 $321,671 $3,134,812 $2,950,396 0 0 0 43,342 144,166 329,382 189,586 277,625 1,138,785 969,187 43,342 144,166 329,382 189,586 277,625 1,138,785 969,187 158,166 411,736 333,754 228,102 44,046 1,996,027 1,981,209 $201,508 $555,902 $663,136 $417,688 $321,671 $3,134,812 $2,950,396 105 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, 2014 With Comparative Totals For The Year Ended December 31, 2013 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 Total other financing sources (uses) Net change in fund balance Fund balance - January 1 Fund balance - December 31 2009 Street Storm Water State Aid Street Tax Abatement Improvement $ - $ - $150,649 $185,561 - 61,800 - - - - 30,906 - - - - 26,147 146,423 - - - 1,147 182 1,921 4,341 147,570 61,982 183,476 216,049 145,000 60,000 130,000 150,000 6,675 2,700 43,514 73,918 122 86 316 204 986 655 1,640 3,524 152,783 63,441 175,470 227,646 (5,213) (1,459) 8,006 (11,597) 0 0 0 0 (5,213) (1,459) 8,006 (11,597) 147,981 67,565 219,034 395,906 $142,768 $66,106 $227,040 $384,309 106 Statement 17 2010 Street 2011 Street 2012 Street 2013 Street 2014 Street Improvement Improvement Improvement Improvement Improvement Bond Fund 514 Bond Fund 516 Bond Fund 518 Bond Fund 520 Bond Fund 522 Totals Nonmajor Debt Service Funds 2014 2013 $109,928 $140,252 $141,187 $117,234 $ - $844,811 $888,323 - - - - - 61,800 63,600 - - - - - 30,906 30,906 5,013 34,018 41,959 31,691 - 138,828 200,705 - - - - - 146,423 152,750 1,516 5,193 3,559 2,248 356 20,463 (5,528) 116,457 179,463 186,705 151,173 356 1,243,231 1,330,756 80,000 105,000 125,000 - - 795,000 755,000 36,092 61,175 47,763 36,338 - 308,175 365,694 400 297 104 450 - 1,979 4,114 4,283 117 122 346 65 11,738 2,703 120,775 166,589 172,989 37,134 65 1,116,892 1,127,511 (4,318) 12,874 13,716 114,039 291 126,339 203,245 - - - - 43,755 43,755 22,057 - - 10,330 - - 10,330 82,772 0 0 10,330 0 43,755 54,085 104,829 (4,318) 12,874 24,046 114,039 44,046 180,424 308,074 162,484 398,862 309,708 114,063 - 1,815,603 1,673,135 $158,166 $411,736 $333,754 $228,102 $44,046 $1,996,027 $1,981,209 Reconciliation of beginning fund balance to prior year ending fund balance: Less prior year ending fund balance for funds reported as major in current year: $1,981,209 Silver Lake Road Bond Fund 365 (165,606) Current year beginning fund balance $1,815,603 107 - This page intentionally left blank - 108 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). 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. Storm Water Improvement Fund was established to account for the construction costs associated with the 100 -Year Flood Protection Project and related flooding issues. 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. CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS December 31, 2014 With Comparative Totals For December 31, 2013 110 Revolving Park Improvement Silver Lake Village Improvement 509 501 Park 350 Assets Cash and investments $753,967 $187,642 $ - Due from other governmental units 863 - 81,451 Property taxes receivable: Delinquent - - - Due from county 47 - - Special assessment receivable 33,609 - - Total assets $788,486 $187,642 $81,451 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $7,466 $ - $829 Contracts payable - - 91,820 Interfund payable - - 160,352 Interfund loan payable 56,200 - - Due to other governments - - - Total liabilities 63,666 0 253,001 Deferred inflows of resources: Unavailable revenue 33,609 - - Total deferred inflows of resources 33,609 0 0 Fund balance (deficit): Assigned 691,211 187,642 - Unassigned - - (171,550) Total fund balance (deficit) 691,211 187,642 (171,550) Total liabilities, deferred inflows of resources, and fund balance $788,486 $187,642 $81,451 110 Statement 18 111 Building 2013 Street Capital Equipment Improvement Fund Storm Water Improvement Fund 401 510 Improvement 702 Project Fund 519 Totals Nonmajor Capital Project Funds 2014 2013 $126,698 $ - $ - $255,379 $1,323,686 $1,279,815 - - 78,342 - 160,656 96,831 667 - - - 667 712 355 - - - 402 446 - - - - 33,609 39,637 $127,720 $0 $78,342 $255,379 $1,519,020 $1,417,441 $8,245 $ - $1,696 $ - $18,236 $62,796 - - - 66,264 158,084 21,683 - 33,805 - - 194,157 - - - - - 56,200 61,820 - - - - - 813 8,245 33,805 1,696 66,264 426,677 147,112 667 - - - 34,276 40,349 667 0 0 0 34,276 40,349 118,808 - 76,646 189,115 1,263,422 1,235,725 - (33,805) - - (205,355) (5,745) 118,808 (33,805) 76,646 189,115 1,058,067 1,229,980 $127,720 $0 $78,342 $255,379 $1,519,020 $1,417,441 111 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBEN ING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2014 With Comparative Totals For The Year Ended December 31, 2013 Revenues: General property taxes Intergovernmental: State - other Other - local participation Special assessments Charges for services: Service charges Investment income Contributions and donations Refunds and reimbursements Other Total revenues Expenditures: General government: Materials and supplies Capital outlay Public safety: Materials and supplies Capital outlay Public works: Materials and supplies Contractual services Capital outlay Parks and recreation: Materials and supplies Capital outlay Debt service: Interest Construction/acquistion costs Total expenditures Revenues over (under) expenditures Other financing sources: Transfers in Transfers out Sale of capital assets Total other financing sources Net change in fund balance Fund balance (deficit) - January 1 Fund balance (deficit) - December 31 Revolving Improvement 509 112 Park Improvement Silver Lake Village 501 Park 350 - 297,442 8,132 - - 13,774 3,577 3,428 25,334 3,577 297,442 60,947 - - 21,500 - - - 21,763 - - 16,124 - 3,250 - - - - 466,725 85,697 37,887 466,725 (60,363) (34,310) (169,283) (90,000) - - (90,000) 0 0 (150,363) (34,310) (169,283) 841,574 221,952 (2,267) $691,211 $187,642 ($171,550) Capital Equipment Fund 401 Building 2013 Street Improvement Fund Storm Water Improvement Project 510 Improvement 702 Fund 519 Statement 19 Totals Nonmajor Capital Project Funds 2014 2013 $49,732 $ - $ - $ - $49,732 $49,256 - - - - 297,442 2,000 - - 31,795 31,867 63,662 86,039 - - - - 8,132 6,150 - - 41,151 - 41,151 204,543 916 764 - 5,152 24,183 (5,422) 33,840 - - - 33,840 13,434 - - - 3,428 15,428 691 - - - 691 169,643 85,179 764 72,946 37,019 522,261 541,071 35,459 - - - 35,459 49,129 38,826 - - 38,826 - - 20,004 - 20,004 - 85,215 197,974 - 283,189 - - 6,255 - - 6,255 10,069 - 27,152 - - 88,099 119,214 31,643 - - - 53,143 270,443 - - - - 21,763 32,025 33,340 - - - 49,464 - - - - - 3,250 3,546 - - 49,683 136,985 653,393 69,783 224,483 251,385 49,683 136,985 1,252,845 554,209 (139,304) (250,621) 23,263 (99,966) (730,584) (13,138) 248,200 98,000 - - 346,200 393,200 - - - - (90,000) (172,772) 13,390 - - - 13,390 25,244 261,590 98,000 0 0 269,590 245,672 122,286 (152,621) 23,263 (99,966) (460,994) 232,534 (3,478) 118,816 53,383 289,081 1,519,061 997,446 $118,808 ($33,805) $76,646 $189,115 $1,058,067 $1,229,980 Reconciliation of beginning fund balance to prior year ending fund balance: Add: prior year ending fund balance for funds reported as nonmajor in current year: $1,229,980 2013 Street Improvement Project Fund 519 289,081 Current year beginning fund balance $1,519,061 113 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, 2014 With Comparative Actual Amounts For The Year Ended December 31, 2013 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 financing sources: Transfer in Transfer out Net change in fund balance Fund balance - January 1 Fund balance - December 31 2014 Budgeted Amounts 2013 Original Final Actual Actual $125,000 $125,000 $125,000 $125,000 250 250 439 (842) - - 6,980 3,237 125,250 125,250 132,419 127,395 12,036 12,036 14,124 13,902 550 550 2,151 179 167,292 166,281 176,541 158,167 179,878 178,867 192,816 172,248 (54,628) (53,617) (60,397) (44,853) 73,650 73,650 64,654 70,150 (25,000) (25,000) (25,000) (145,000) ($5,978) ($4,967) 114 (20,743) (119,703) 36,559 156,262 $15,816 $36,559 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, 2014 With Comparative Actual Amounts For The Year Ended December 31, 2013 115 2014 Budgeted Amounts 2013 Original Final Actual Actual Revenues: Forfeiture and confiscation $12,500 $12,500 $7,549 $11,110 Investment income - - 488 (124) Total revenues 12,500 12,500 8,037 10,986 Expenditures: Public safety: Current: Personal services - - 1,984 2,703 Supplies 3,500 3,500 3,622 2,608 Other services and charges 6,250 6,250 - - Capital outlay 2,750 2,750 - 5,792 Total expenditures 12,500 12,500 5,606 11,103 Revenues over (under) expenditures $0 $0 2,431 (117) Fund balance - January 1 28,741 28,858 Fund balance - December 31 $31,172 $28,741 115 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, 2014 With Comparative Actual Amounts For The Year Ended December 31, 2013 116 2014 Budgeted Amounts 2013 Original Final Actual Actual Revenues: Intergovernmental: Hennepin County recycling grant $ - $ - $17,383 $17,340 Charges for services - - - 2,683 Investment income - - 76 - Other - - - 625 Total revenues 0 0 17,459 20,648 Expenditures: General government: Current: Personal services - - - 472 Other services and charges - 3,853 - 24,887 Total expenditures 0 3,853 0 25,359 Revenues over (under) expenditures $ - ($3,853) 17,459 (4,711) Other financing sources: Transfer in - - - 25,000 Transfer out - - (15,645) - Total other financing sources - - (15,645) 25,000 Net change in fund balance $0 ($3,853) 1,814 20,289 Fund balance (deficit) - January 1 3,854 (16,435) Fund balance (deficit) - December 31 $5,668 $3,854 116 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, 2014 With Comparative Actual Amounts For The Year Ended December 31, 2013 Revenues: General property taxes Investment income Refunds and reimbursements Total revenues Expenditures: Housing and redevelopment: Current: Personal services Contractual services Total expenditures Revenues over (under) expenditures Fund balance (deficit) - January 1 Fund balance (deficit) - December 31 2014 Budgeted Amounts 2013 Original Final Actual Actual $150,585 $133,427 $153,194 $148,665 3,000 3,000 - 6,278 -117 C 1 JJ,J V✓ 1JV,'TL I - ,J, 1.7 1J✓1V 117 90,612 90,612 88,861 85,383 50,000 50,000 54,292 50,224 140,612 140,612 143,153 135,607 $12,973 ($4,185) 117 10,041 20,011 (169,816) (189,827) ($159,775) ($169,816) 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, 2014 With Comparative Actual Amounts For The Year Ended December 31, 2013 Revenues: Charges for services Investment income Total revenues Expenditures: Public safety: Current: Personal services Materials and supplies Other Total expenditures Revenues over (under) expenditures Fund balance - January 1 Fund balance - December 31 2014 Budgeted Amounts 2013 Original Final Actual Actual $5,500 $5,500 $3,385 $5,040 - - 61 (17) 5,500 5,500 3,446 5,023 4,590 4,590 1,340 4,378 550 550 2,380 1,494 25 25 - - 5,165 5,165 3,720 5,872 $335 $335 118 (274) (849) 3,183 4,032 $2,909 $3,183 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND For The Year Ended December 31, 2014 Developer Deposits Statement 25 Balance Balance January 1, December 31, 2014 Additinnc neletinnc 2014 Assets: Cash and investments ($7,234) $7,234 ($1,090) ($1,090) Accounts receivable - net 7,234 1,090 (7,234) 1,090 Total assets $ - $8,324 ($8,324) $ - Liabilities: Deposits payable $ - $ - - $ - 119 - This page intentionally left blank - 120 6411)1l4►vi14LlkC1:yd;lIkL1►us] /_TOIZMal NLy, F -11I z 121 CITY OF ST. ANTHONY, MINNESOTA BALANCESHEET HRA DEBT SERVICE FUND December 31, 2014 With Comparative Totals For December 31, 2013 Exhibit 1 Public Facilities Revenue Bonds TIF Revenue TIF Revenue 311/312 Bonds 2006 335 Bonds 2007 336 HRA Debt Service Fund Totals 2014 2013 Assets Cash and investments $609,856 $2,643 $7,745 $620,244 $588,736 Property taxes receivable: Delinquent 5,913 - - 5,913 8,049 Due from county 2,882 - - 2,882 3,311 Total assets $618,651 $2,643 $7,745 $629,039 $600,096 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Interfund loan payable $ - $ - $ - $ - $ - Total liabilities 0 0 0 0 0 Deferred inflows of resources: Unavailable revenue 5,913 - - 5,913 8,049 Total deferred inflows of resources 5,913 0 0 5,913 8,049 Fund balance: Restricted 612,738 2,643 7,745 623,126 592,047 Total liabilities, deferred inflows of resources, and fund balance $618,651 $2,643 $7,745 $629,039 $600,096 122 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, 2014 With Comparative Totals For The Year Ended December 31, 2013 Revenues: General property taxes Investment income Total revenues Expenditures: Debt service: Principal Interest and other Paying agent fees Bond issuance costs Total expenditures Revenues over (under) expenditures Other financing sources (uses): Public Facilities TIF Revenue Revenue Bonds Bonds 2006 311/312 335 TIF Revenue Bonds 2007 336 HRA Debt Service Fund Totals 2014 2013 $377,755 $ - $ - $377,755 $374,868 6,145 - 5,155 11,300 (3,546) 383,900 0 5,155 389,055 371,322 700,400 285,000 125,000 4,165,000 4,575,000 710,000 73,290 240,550 205,419 519,259 560,797 228 2,733 533 3,494 7,535 - - 77,241 77,241 - 358,518 368,283 4,448,193 5,174,994 1,278,332 25,382 (368,283) (4,443,038) (4,785,939) (907,010) Refunding bonds issued - - 3,665,000 3,665,000 - Premium on debt issued - - 83,318 83,318 - Transfers in 1,767 368,300 700,400 1,070,467 876,446 Transfers out (1,767) - - (1,767) - Total other financing sources (uses) 0 368,300 4,448,718 4,817,018 876,446 Net change in fund balance 25,382 17 5,680 31,079 (30,564) Fund balance - January 1 587,356 2,626 2,065 592,047 622,611 Fund balance - December 31 $612,738 $2,643 $7,745 $623,126 $592,047 123 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET HRA PROJECTS FUND December 31, 2014 With Comparative Totals For December 31, 2013 Assets Cash and investments 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 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) Exhibit 3 Tax Increment Financing Districts Apache HRA Chandler Apache (Wal- (Cub Foods) Directed Place 321 Mart) 330 326 Projects 319 Eliminations HRA Projects Fund Total 2014 2013 $25,915 $820,934 $498,710 $ - $ - $1,345,559 $1,757,602 646,850 - 722,566 (1,369,416) 54,611 54,611 40,539 1,287 - 1,287 8,114 - - 71,513 71,513 61,049 $672,765 $876,832 $1,221,276 $71,513 ($1,369,416) $1,472,970 $1,867,304 - $214,932 $ $ - $ $214,932 $208,367 - 121,354 121,354 121,453 2,328,742 - (1,369,416) 959,326 959,326 - - - 2,824 0 2,543,674 0 121,354 (1,369,416) 1,295,612 1,291,970 54,611 54,611 40,539 0 54,611 0 0 0 54,611 40,539 672,765 1,221,276 - 1,894,041 1,831,915 - - 71,513 71,513 61,049 - (1,721,453) - (121,354) (1,842,807) (1,358,169) 672,765 (1,721,453) 1,221,276 (49,841) 0 122,747 534,795 $672,765 $876,832 $1,221,276 $71,513 ($1,369,416) $1,472,970 $1,867,304 124 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, 2014 With Comparative Totals For The Year Ended December 31, 2013 Expenditures: Tax Increment Financing Districts - General government: (1,068,700) (876,446) Net change in fund balance Other - 19,673 HRA 16,274 Housing and redevelopment - - 710 - 710 14,463 Debt service: Directed (60,305) 534,795 Interest Chandler Apache (Wal- Apache (Cub Projects - 431,875 - - 431,875 415,233 Place 321 Mart) 330 Foods) 326 319 HRA Projects Fund Totals 25,915 584,062 36,211 10,464 656,652 905,961 $672,765 ($1,721,453) 2014 2013 Revenues: $534,795 Tax increment collections $ - $1,117,824 $ - $ - $1,117,824 $1,398,000 Investment income 25,915 10,940 36,921 - 73,776 43,502 Miscellaneous - - - 10,464 10,464 - Total revenues 25,915 1,128,764 36,921 10,464 1,202,064 1,441,502 Expenditures: - (1,068,700) - General government: (1,068,700) (876,446) Net change in fund balance Other - 19,673 - - 19,673 16,274 Housing and redevelopment - - 710 - 710 14,463 Debt service: 1,185,065 (60,305) 534,795 Interest - 93,154 - - 93,154 89,571 Developer incentives - 431,875 - - 431,875 415,233 Total expenditures 0 544,702 710 0 545,412 535,541 Revenues over (under) expenditures 25,915 584,062 36,211 10,464 656,652 905,961 Other financing sources (uses): Transfers out - (1,068,700) - - (1,068,700) (876,446) Net change in fund balance 25,915 (484,638) 36,211 10,464 (412,048) 29,515 Fund balance - January 1, as previously reported 646,850 (1,236,815) 1,185,065 (60,305) 534,795 716,403 Prior period adjustment - - - - - (211,123) Fund balance - January 1, as restated 646,850 (1,236,815) 1,185,065 (60,305) 534,795 505,280 Fund balance (deficit) - December 31 $672,765 ($1,721,453) $1,221,276$4( 9,841) $122,747 $534,795 125 CITY OF ST. ANTHONY, MINNESOTA SCHEDULE OF REVENUES, EXPENSES AND CHANGES Exhibit 5 IM FUND NET POSITION WATER AND SEWER ENTERPRISE FUND For The Year Ended December 31, 2014 With Comparative Totals For The Year Ended December 31, 2013 Operating revenues: Charges for services Connection charges Total operating revenues Operating expenses: Personal services Supplies Contracted services and other Treatment charges (MCES) Other Depreciation Total operating expenses Operating income (loss) Operations 704 Water Filtration 76,784 Totals 738,151 701 Water and Purification 701 Sewer 2014 2013 $875,407 $ - $914,442 $1,789,849 $1,729,883 3,600 - 6,800 10,400 150,800 879,007 0 921,242 1,800,249 1,880,683 401,613 76,784 259,754 738,151 703,735 17,476 45,957 16,884 80,317 58,954 53,032 107,321 34,664 195,017 136,476 - - 620,470 620,470 588,795 147,056 9,012 52,410 208,478 205,453 214,740 - 74,215 288,955 243,625 833,917 239,074 1,058,397 2,131,388 1,937,038 $45,090 ($239,074) ($137,155) (331,139) (56,355) 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 in Transfers out Change in net position Net position - January 1 Net position - December 31 126 105,631 53,269 (22,275) (29,102) (683) (36,898) 3,182 2,740 85,855 (9,991) (245,284) (66,346) 490,656 1,348,238 15,645 - (100,000) (100,000) 161,017 1,181,892 9,332,173 8,150,281 $9,493,190 $9,332,173 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 128-135 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 136-139 significant local revenue source, the property tax. Debt Capacity These tables present information to help the reader assess the affordability 140-149 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 150-151 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 152-154 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. 127 CITY OF ST. ANTHONY, MINNESOTA NET POSITION BY COMPONENT Last Ten Fiscal Years (Accrual Basis of Accounting) Governmental activities: Net invested in capital assets, Restricted for: Debt service Public safety Unrestricted Total governmental activities net position Business -type activities: Net invested in capital assets, Restricted for: Debt service Unrestricted Total business -type activities net position Primary government: Net invested in capital assets, Restricted for: Debt service Public safety Unrestricted Total primary government net position 2005 $4,785,860 8,164,796 50,191 3,729,287 $16,730,134 $1,758,506 120,000 2,157,418 Fiscal Year 2006 $9,108,004 6,541,771 42,994 2,287,779 $17,980,548 $1,822,792 120,000 1,973,533 2007 $12,640,902 3,228,881 53,908 (383,292) $15,540,399 $2,703,188 120,000 1,183,416 2008 $13,372,903 2,327,517 63,701 90,615 $15,854,736 $4,745,674 120,000 1,042,856 $4,035,924 $3,916,325 $4,006,604 $5,908,530 $6,544,366 8,284,796 50,191 5,886,705 $20,766,058 $10,930,796 6,661,771 42,994 4,261,312 $21,896,873 $15,344,090 3,348,881 53,908 800,124 $19,547,003 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. Note: GASB 65 was implemented in 2013. Net position was restated for 2012 to reflect the expensing of bond issuance costs in the year of issuance. Net position for years prior to 2012 was not restated. 128 $18,118,577 2,447,517 63,701 1,133,471 $21,763,266 Table 1 Fiscal Year 2009 2010 2011 2012 2013 2014 $12,367,934 $14,098,233 $15,334,754 $15,182,974 $16,217,013 $14,953,582 6,782,289 4,372,871 4,263,706 4,741,115 3,347,895 5,717,140 60,985 34,320 16,281 21,521 21,528 23,471 (3,478,013) (1,339,821) (6,358,682) (5,566,910) (5,239,277) (5,169,936) $15,733,195 $17,165,603 $13,256,059 $14,378,700 $14,347,159 $15,524,257 $5,017,685 120,000 730,653 $4,915,905 120,000 615,994 $4,767,233 5,642,649 $4,523,383 5,814,241 $5,605,845 5,965,067 $6,036,192 5,570,360 $5,868,338 $5,651,899 $10,409,882 $10,337,624 $11,570,912 $11,606,552 $17,385,619 $19,014,138 $20,101,987 $19,706,357 $21,822,858 $20,989,774 6,902,289 4,492,871 4,263,706 4,741,115 3,347,895 5,717,140 60,985 34,320 16,281 21,521 21,528 23,471 (2,747,360) (723,827) (716,033) 247,331 725,790 400,424 $21,601,533 $22,817,502 $23,665,941 $24,716,324 $25,918,071 $27,130,809 129 CITY OF ST. ANTHONY, NUNNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) Table 2 Page 1 of 2 Business -type activities Liquor 5,034,639 5,429,222 5,740,169 5,969,076 6,156,097 Fiscal Year 6,537,271 6,618,975 6,479,809 5,879,240 Water 2005 2006 2007 2008 2009 2010 2011 2012 2013«1 2014 Expenses - - - - - - 132,981 114,337 124,505 239,074 Governmental activities: 805,171 736,967 785,491 860,918 932,979 956,635 944,097 1,041,085 1,019,421 1,069,876 General government $877,230 $1,115,231 $1,111,240 $1,231,302 $1,160,932 $1,310,199 $1,052,821 $1,307,007 $1,029,147 $1,116,100 Public safety 2,402,296 2,461,222 2,359,360 2,656,975 2,937,528 2,898,043 2,971,316 2,971,275 4,488,023 4,644,185 Public works 1,414,857 1,400,951 6,266,350 1,436,309 1,839,163 1,841,083 1,834,066 2,671,918 2,565,860 2,711,291 Parks and recreation 1,499,773 806,512 450,549 416,881 424,590 440,858 457,822 377,689 569,254 608,966 Services to other cities 606,952 649,625 911,419 940,807 1,026,842 1,016,479 1,039,009 1,039,504 - - Housing and redevelopment 424,273 2,967,835 173,098 536,068 2,534,700 654,145 671,934 649,104 565,303 575,738 Interest on long-term debt 1,014,270 1,096,390 1,411,926 1,497,107 1,407,527 1,290,844 1,302,681 1,197,073 1,217,646 1,044,635 Total governmental $12,339,357 $10,777,017 $11,160,297 $12,120,059 $12,439,987 $11,844,589 $11,851,385 $13,248,340 $12,661,217 $11,823,107 activities expenses 8,239,651 10,497,766 12,683,942 8,715,449 11,331,282 9,451,651 9,329,649 10,213,570 10,435,233 10,700,915 Business -type activities Liquor 5,034,639 5,429,222 5,740,169 5,969,076 6,156,097 6,360,985 6,537,271 6,618,975 6,479,809 5,879,240 Water 641,490 899,686 775,828 794,433 843,723 826,352 874,099 901,732 859,112 845,396 Water Filtration and Purification - - - - - - 132,981 114,337 124,505 239,074 Sewer 805,171 736,967 785,491 860,918 932,979 956,635 944,097 1,041,085 1,019,421 1,069,876 Total business -type 1,192,468 999,142 876,425 841,448 972,456 817,062 803,397 1,067,084 2,506,369 2,374,306 activities expenses 6,481,300 7,065,875 7,301,488 7,624,427 7,932,799 8,143,972 8,488,448 8,676,129 8,482,847 8,033,586 Total primary 2,905,063 974,678 755,930 1,684,417 1,659,382 992,511 839,137 1,566,565 780,072 1,070,975 government expenses $14,720,951 $17,563,641 $19,985,430 $16,339,876 $19,264,081 $17,595,623 $17,818,097 $18,889,699 $18,918,080 $18,734,501 Program revenues Governmental activities: Charges for services: 5,298,404 5,814,838 6,187,185 6,359,731 6,611,975 6,826,901 6,995,923 7,139,381 6,908,143 6,078,039 Services to other cities $724,140 $747,675 $1,039,000 $1,096,200 $1,156,500 $1,157,190 $1,180,334 $1,192,138 $ - $ - Other activities 1,192,468 999,142 876,425 841,448 972,456 817,062 803,397 1,067,084 2,506,369 2,374,306 Operating grants and contributions 691,777 684,819 609,886 522,542 456,357 475,411 454,841 447,554 585,950 499,538 Capital grants and contributions 2,905,063 974,678 755,930 1,684,417 1,659,382 992,511 839,137 1,566,565 780,072 1,070,975 Total governmental activities program revenues 5,513,448 3,406,314 3,281,241 4,144,607 4,244,695 3,442,174 3,277,709 4,273,341 3,872,391 3,944,819 Business -type activities: Charges for services: Liquor 5,298,404 5,814,838 6,187,185 6,359,731 6,611,975 6,826,901 6,995,923 7,139,381 6,908,143 6,078,039 Water 684,096 778,979 841,611 812,371 806,987 785,642 798,240 957,824 933,051 879,007 Water Filtration and Purification - - - - - - - - - - Sewer 843,409 776,886 850,260 803,350 776,330 789,872 779,513 877,794 947,632 921,242 Operating grants and contributions - - - - - - - - - - Capital grants and contributions Total business -type activities program revenues 6,825,909 7,370,703 7,879,056 7,975,452 8,195,292 8,402,415 8,573,676 8,974,999 8,788,826 7,878,288 Total primary government program revenues $12,339,357 $10,777,017 $11,160,297 $12,120,059 $12,439,987 $11,844,589 $11,851,385 $13,248,340 $12,661,217 $11,823,107 130 CITY OF ST. ANTHONY, NHNNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) Table 2 Page 2 of 2 General revenues and other changes in net position: Fiscal Year Governmental activities: 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Net (expense) revenue: 499 12,490 18,303 17,089 10,353 3,454 3,976 17,569 66,478 61,444 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) ($6,756,096) Business -type activities 344,609 304,828 577,568 351,025 262,493 258,443 85,228 298,870 305,979 (155,298) Total primary government 124,309 94,470 159,741 88,291 20,918 22;827 24,673 10,639 26,384 461,964 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) (6,911,394) General revenues and other changes in net position: Governmental activities: 44,410 78,638 74,764 18,985 6,833 (336) 52,659 122,833 51,593 111,512 Taxes: 499 12,490 18,303 17,089 10,353 3,454 3,976 17,569 66,478 61,444 Property taxes $3,464,453 $3,668,503 $3,968,436 $4,115,365 $4,442,708 $4,750,440 $4,872,840 $5,408,188 $5,703,707 $6,030,558 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 1,131,896 Grants and contributions 124,309 94,470 159,741 88,291 20,918 22;827 24,673 10,639 26,384 461,964 Unrestricted investment earnings 358,571 514,440 698,345 403,426 208,761 224,693 6,803 55,206 25,914 189,441 Other 214,859 96,837 77,745 36,365 16,103 61,866 148,500 208,525 389,785 104,113 Gain on sale of capital assets - 8,730 - - 3,981 - - 46,195 - 33,204 Transfers 348,250 485,000 580,356 (1,514,827) 319,871 478,000 595,200 610,000 (809,238) (17,982) 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 7,933,194 Business -type activities: Unrestricted investment earnings 44,410 78,638 74,764 18,985 6,833 (336) 52,659 122,833 51,593 111,512 Other 499 12,490 18,303 17,089 10,353 3,454 3,976 17,569 66,478 61,444 Transfers (348,250) (485,000) (580,356) 1,514,827 (319,871) (478,000) (595,200) (610,000) 809,238 17,982 Total business -type activities (303,341) (393,872) (487,289) 1,550,901 (302,685) (474,882) (538,565) (469,598) 927,309 190,938 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 $8,124,132 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 $1,177,098 Business -type activities 41,268 (89,044) 90,279 1,901,926 (40,192) (216,439) (453,337) (170,728) 1,233,288 35,640 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 $1,212,738 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. (n In 2011 the Water Filtration and Purification fund was reclassified to the Water and Sewer Proprietary Fund. (z)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. 131 - This page intentionally left blank - 132 CITY OF ST. ANTHONY, MINNESOTA FUND BALANCES - GOVERNMENTAL FUNDS Table 3 Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Fiscal Year 133 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General Fund: Reserved $39,805 $44,852 $46,543 $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 68,481 74,049 91,136 Unassigned 1,647,566 1,906,856 2,074,490 2,384,345 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 $2,475,481 All other governmental funds: Reserved $5,537,424 $5,564,131 $4,116,654 $3,595,470 $6,264,349 $4,625,111 $ $ $ $ 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 1,631 Restricted 6,868,120 8,594,337 2,002,737 7,627,714 Committed 210,953 222,184 33,015 78,180 Assigned 763,667 1,344,529 1,253,470 1,318,583 Unassigned (1,240,578) (1,473,482) (175,561) (2,407,745) Total all other governmental finds $11,831,495 $12,400,480 $10,462,116 $10,138,982 $11,908,429 $10,081,202 $6,602,294 $8,687,697 $3,113,710 $6,618,363 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. 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. 133 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Revenues: General property taxes Tax increment collections Licenses, fees and permits Intergovernmental Special assessments Charges for services Cable franchise fees Fines and forfeits Investment income Contributions and donations Miscellaneous Total revenues Expenditures: Current: General government Public safety Public works Parks and recreation Services to other cities Nondeparlmental Housing and redevelopment Capital outlay: General government Public safety Public works Parks and recreation Debt service: Principal retirement Interest Paying agent fees Professional service Issuance costs Construction/acquisition costs Developer incentives District decertified - repayment of tax increments Total expenditures Revenues over (under) expenditures Table 4 Page 1 of 2 Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 «� 2014 $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 $6,053,119 410,968 851,309 1,469,532 1,682,549 1,903,840 1,911,678 1,708,873 1,364,881 1,398,000 1,117,824 548,972 244,170 213,842 247,878 358,381 224,096 195,563 290,985 342,390 351,102 1,201,555 954,911 706,080 2,039,592 1,430,366 1,239,053 861,744 1,530,983 792,477 1,464,479 1,548,836 589,812 441,327 385,197 506,262 398,895 517,678 427,467 587,191 491,988 1,057,781 1,113,298 1,403,419 1,451,925 1,519,427 1,528,210 1,573,975 1,736,274 1,932,268 1,787,611 69,577 70,737 85,162 92,606 92,309 92,786 96,608 101,403 104,089 109,009 101,273 135,960 164,788 139,421 122,870 128,165 117,835 130,560 129,363 126,584 354,749 507,615 689,428 400,038 184,053 224,598 6,792 55,201 24,197 189,216 - 6,300 37,100 3,950 3,450 2,834 610 2,778 16,134 45,640 540,229 511,851 404,611 186,449 53,354 708,181 148,500 194,052 375,719 104,113 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 11,840,685 776,110 952,291 945,295 1,076,699 1,017,405 1,170,630 883,478 1,059,361 836,190 926,501 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 4,357,563 772,565 759,254 809,751 679,269 761,530 726,064 684,761 818,851 1,042,876 1,001,378 1,467,289 783,791 428,341 394,673 401,787 388,808 366,153 344,702 420,826 463,057 606,952 649,625 911,419 940,807 1,026,842 1,016,479 1,039,009 1,039,504 - - 5,228 1,501 48,735 23,387 6,798 6,940 22,283 160;513 56,117 59,265 424,273 439,422 173,098 212,583 191,608 183,513 227,921 240,097 150,070 143,863 572 6,389 125 - - - 12,661 46,588 8,157 38,826 139,648 229,174 12,993 - - 67,850 152,405 130,000 5,792 283,189 31,040 21,056 316,264 318,668 271,459 212,029 112,158 170,056 270,443 53,143 - 19,712 - - - - - - - 49,464 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 7,785,000 997,352 1,022,069 1,313,578 1,450,248 1,369,280 1,392,608 1,271,549 1,299,266 1,308,344 1,139,216 14,386 9,373 11,501 10,601 9,519 8,763 11,582 18,811 16,387 7,853 16,097 9,140 1,901 5,080 5,077 3,117 30,109 3,480 6,682 17,104 - - 208,545 - 49,420 - 67,278 132,217 66,035 185,800 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 2,959,264 - 2,769,938 3,592,385 323,485 443,092 470,632 444,013 409,007 415,233 431,875 - 36,580 - - - - - - - - 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 19,902,361 (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) (8,061,676) 134 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Table 4 Last Ten Fiscal Years Page 2 of 2 (Modified Accrual Basis of Accounting) Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 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 $2,070,000 Refunding bonds issued 2,855,000 3,225,000 7,300,000 4,970,000 Redemption of refunded bonds (1,210,000) (1,030,000) - - Payment to refunded bond escrow agent - - (4,015,373) - Premium on debt issued 30,669 - 8,749 140,492 402 105,598 190;221 42,080 158,044 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 13,390 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 1,908,166 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) (1,514,667) 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 7,604,933 Net change in fund balance ($447,616) $493,689 ($1,782,325) ($320,989) $1,854,376 ($1,824,631) $1,851,615 $2,488,931 ($901,324) ($456,743) Debt service as a percentage of noncapital expenditures 28.7% 40.0% 27.4% 38.1% 33.7% 46.1% 40.4% 44.6% 43.6% 54.2% 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% 44.8% 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. (2) In 2013, services to other cities were reclassified to public safety expense. 135 CITY OF ST. ANTHONY, MINNESOTA TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years Table 5 Source: Official Statements for the City of St. Anthony. (Hennepin and Ramsey Counties Combined) * Includes tax increment tax capacity and net fiscal disparities impact. 136 Commercial/ Total Adjustments Adjusted Total Estimated Tax Capacity Payable Residential Industrial All Tax to Tax Tax Capacity Direct Tax Market as a Percent Year Property Property Other Capacity Capacily * Value Rate Value of EMV 2005 5,758,863 1,509,783 70,799 7,339,445 (30,542) 7,308,903 50.31% 636,972,900 1.15% 2006 6,449,616 2,001,921 65,285 8,516,822 (391,888) 8,124,934 46.58% 730,541,000 1.17% 2007 7,466,195 2,317,446 75,570 9,859,211 (1,315,126) 8,544,085 46.42% 838,117,800 1.18% 2008 7,894,132 2,575,759 64,903 10,534,794 (1,374,734) 9,190,060 45.62% 893,542,800 1.18% 2009 7,537,190 2,684,972 67,599 10,289,761 (1,260,607) 9,029,154 51.61% 869,823,300 1.18% 2010 7,194,714 2,546,141 64,834 9,805,689 (1,106,369) 8,699,320 55.66% 828,631,600 1.18% 2011 6,734,706 2,398,897 71,265 9,204,868 (909,287) 8,295,581 59.89% 778,761,500 1.18% 2012 6,225,942 2,273,812 73,491 8,573,245 (846,346) 7,726,899 68.85% 761,934,600 1.13% 2013 5,860,660 2,139,288 83,509 8,083,457 (802,123) 7,281,334 75.46% 721,227,600 1.12% 2014 5,863,304 2,146,080 78,927 8,088,311 (765,126) 7,323,185 77.16% 720,018,700 1.12% Source: Official Statements for the City of St. Anthony. (Hennepin and Ramsey Counties Combined) * Includes tax increment tax capacity and net fiscal disparities impact. 136 CITY OF ST. ANTHONY, MINNESOTA DIRECT AND OVERLAPPING PROPERTY TAX RATES Last Ten Fiscal Years 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. 137 City Overlapping Rates* Fiscal Direct School Other Hennepin Year Rate District Districts County Total 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 46.90% 19.73% 13.81% 38.57% 119.01% 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% 2014 77.16% 33.09% 13.22% 49.96% 173.43% 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. 137 CITY OF ST. ANTHONY, MINNESOTA PRINCIPAL PROPERTY TAXPAYERS Current Year and Nine Years Ago Source: Official Statements for the City of St. Anthony 2014 2005 Rank 1 2 3 4 5 7 6 8 9 10 0 138 Percentage Tax of Total City Capacity Taxpayer Value Inland Silver Lake Village LLC $718,098 St. Anthony Leased Housing Assoc. 326,560 Autumn Woods Partnership LP 185,275 Equinox Properties LLC 183,169 St. Anthony Shopping Center 128,730 Chandler Place LP 102,608 Xcel Energy 98,682 Landau - 3925 Pleasant (Mortenson) 80,238 St. Anthony Nursing Home LP 78,289 Highcrest Lanor LP 52,506 Northern Gopher Enterprises Inc - LG Anderson LLC - Total $1,954,155 Total All Property $8,088,311 Source: Official Statements for the City of St. Anthony 2014 2005 Rank 1 2 3 4 5 7 6 8 9 10 0 138 Percentage of Total City Tax Capacity Capacity Value Value 8.88% $278,706 4.04% - 2.29% 202,675 2.26% 199,500 1.59% 55,350 1.27% 89,250 1.22% 71,582 0.99% 67,500 0.97% 67,423 0.65% - - 107,025 - 55,410 24.16% $1,194,421 $7,339,445 Rank 1 2 3 10 5 6 7 8 0 4 9 Table 7 Percentage of Total City Capacity Value 3.80% 2.76% 2.72% 0.75% 1.22% 0.98% 0.92% 0.92% 1.46% 0.75% 16.28% CITY OF ST. ANTHONY, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Table 8 Last Ten Fiscal Years 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 (') Years Amount of Levy 2005 3,689,759 3,655,463 99.07% 12,095 3,667,558 99.40% 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 (2) 4,352,222 97.47% 60,313 4,412,535 98.82% 2010 4,642,067 (2) 4,566,162 98.36% 57,447 4,623,609 99.60% 2011 4,761,665 (2' 4,710,258 98.92% 37,239 4,747,497 99.70% 2012 5,223,089 5,157,341 98.74% 55,789 5,213,130 99.81% 2013 5,426,789 5,345,759 98.51% 65,058 5,410,817 99.71% 2014 5,633,007 5,564,141 98.78% Not Available Beginning with payable year 2006 through 2001, Market Value Homestead Credit is included in the operating levy. (2) Net of Market Value Homestead Credit which was subject to State unallotments or other reductions. Sources: 2005 - 2014 St. Anthony Finance Department 139 CITY OF ST. ANTHONY, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Source: St. Anthony Finance Department *See Table 13 for Population data. 140 Percentage of Adjusted Tax Canacitv 341.36% 348.93% 384.42% 359.39% 414.86% 400.33% 451.61% 460.60% 454.86% 442.09% Governmental Activities G.O. G.O. Tax Lease G.O. Other Total Fiscal Improvement Reconstruction Increment Revenue Revenue G.O. Fannie Governmental Year Bonds Bonds Bonds Bonds Bonds Bonds Mae Loan Activities 2005 $ 11,210,000 $ $ 2,355,000 $ 5,340,000 $ 1,260,000 $ 1,435,000 $ 3,350,000 $ 24,950,000 2006 11,300,000 6,145,000 5,150,000 1,160,000 1,245,000 3,350,000 28,350,000 2007 12,675,000 10,605,000 4,955,000 1,055,000 1,055,000 2,500,000 32,845,000 2008 11;105,000 1,910,000 10,375,000 4,755,000 945,000 860,000 2,500,000 32,450,000 2009 14,310,000 1,910,000 10,055,000 4,550,000 825,000 2,390,000 2,050,000 36,090,000 2010 13,450,000 1,810,000 9,710,000 4,335,000 695,000 1,960,000 1,250,000 33,210,000 2011 16,645,000 1,710,000 9,345,000 4,110,000 565,000 1,850,000 - 34,225,000 2012 18,935,000 1,605,000 8,960,000 3,995,000 430,000 1,665,000 35,590,000 2013 17,605,000 1,500,000 8,545,000 3,700,000 295,000 1,475,000 33,120,000 2014 16,910,000 2,695,000 7,920,000 3,415,000 150,000 1,285,000 32,375,000 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Source: St. Anthony Finance Department *See Table 13 for Population data. 140 Percentage of Adjusted Tax Canacitv 341.36% 348.93% 384.42% 359.39% 414.86% 400.33% 451.61% 460.60% 454.86% 442.09% 141 Table 9 Total Percentage Sewer/ of Personal Per Business -Type Activities Income Water 27,570,000 Sewer/ Liquor Total Bonds 3,391 Water Revenue Business -Type Per Bonds Bonds Activities Customer 35,035,000 $ 2,125,000 $ 495,000 $ 2,620,000 11.03% 924 2,050,000 425,000 2,475,000 34,560,000 891 1,975,000 350,000 2,325,000 859 1,895,000 270,000 2,165,000 824 1,815,000 185,000 2,000,000 789 1,730,000 95,000 1,825,000 752 1,640,000 - 1,640,000 713 1,545,000 1,545,000 672 1,440,000 1,440,000 626 1,330,000 1,330,000 578 141 Table 9 Total Percentage Primary of Personal Per Government Income Capita* 27,570,000 $ 2,979 30,825,000 Not Available 3,391 35,170,000 3,864 34,615,000 3,846 38,090,000 12.20% 4,239 35,035,000 11.75% 4,037 35,865,000 11.03% 4,107 37,135,000 11.07% 4,228 34,560,000 10.14% 3,889 33,705,000 Nat Available - This page intentionally left blank - 142 CITY OF ST. ANTHONY, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of December 31, 2014 Governmental Unit Debt repaid with property taxes: (1) School Districts: ISD No. 282 NE Metro Intermediate School District No. 916 Counties: Hennepin Ramsey Other: Metropolitan Council Three Rivers Park District Subtotal - overlapping debt City direct debt (2) Total direct and overlapping debt Sources: (l) Official Statements for City of St. Anthony (2) St. Anthony Finance Department Debt Outstanding $21,160,000 735,600,000 177,575,000 196,680,000 55,755,000 Estimated Percentage Applicable* 53.6503% 0.3769% 0.2789% Table 10 Estimated Share of Overlapping Debt $11,352,414 2,772,327 495,222 0.2442% 480,258 0.5188% 289,282 15,389,503 32,375,000 $47,764,503 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. 143 CITY OF ST. ANTHONY, MINNESOTA LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years Legal Debt Margin Calculation for Fiscal Year 2014 Market value Debt limit (3% of market value) Debt applicable to limit: General obligation bonds Less: Amount set aside for repayment of general obligation debt Total net debt applicable to limit Legal debt margin 2005* Debt limit $ 13,406,318 Total net debt applicable to limit 4,776,007 Legal debt margin $ 8,630,311 2006* $ 14,610,820 4,429,013 $ 10,181,807 2007* $ 17,870,856 4,099,637 $ 13,771,219 Total net debt applicable to the limit as a percentage of debt limit 35.63% 30.31% 22.94% Source: Market Value - Hennepin County and Ramsey County, Minnesota Assessor's Offices *Debt limit was 2% of market value. 144 Legal Debt Margin Calculation for Fiscal Year 2014 Table 11 $674,222,730 20,226,682 6,110,000 (2,078,937) 4,031,063 $16,195,619 2008 2009 2010 2011 2012 2013 2014 $ 26,094,699 $ 24,778,098 $ 23,262,423 $ 22,184,277 $ 21,518,115 $ 20,237,210 $ 20,226,682 5,741,849 5,410,204 5,059,006 4,708,301 4,902,237 4,450,131 4,031,063 $ 20,352,850 $ 19,367,894 $ 18,203,417 $ 17,475,976 $ 16,615,878 $ 15,787,079 $ 16,195,619 22.00% 21.83% 21.75% 21.22% 22.78% 21.99% 19.93% 145 CITY OF ST. ANTHONY, MINNESOTA PLEDGED REVENUE COVERAGE Last Ten Fiscal Years Storm Sewer Revenue Bonds Net Stormwater Less Fiscal Service Operating Year Charges Expenses 2005 $163,951 $ - 2006 169,255 - 2007 167,373 - 2008 167,373 - 2009 167,793 - 2010 150,431 - 2011 150,833 - 2012 150,734 - 2013 152,750 - 2014 146,423 - Storm Sewer Revenue Bonds Net Available Debt Service Revenue Principal Interest Coverage $167,373 $95,000 $68,448 102% 169,255 100,000 63,670 103% 167,373 105,000 58,595 102% 167,373 110,000 53,220 103% 167,793 120,000 40,103 105% 150,431 130,000 28,575 95% 150,833 130,000 18,900 101% 150,734 135,000 14,925 101% 152,750 135,000 10,875 105% 146,423 145,000 6,675 97% 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. 146 Utility Less Service Operating Charges Expenses $1,527,505 $1,210,943 1,556,004 1,387,657 1,691,871 1,480,228 1,615,721 1,367,564 1,583,317 1,464,759 1,575,514 1,452,765 1,577,823 1,492,891 1,836,635 1,621,559 1,883,034 1,577,518 1,803,431 1,577,518 Water and Sewer Revenue Bonds Net Available Revenue Principal $316,562 168,347 211,643 248,157 118,558 122,749 84,932 215,076 305,516 225,913 147 Debt Service $75,000 75,000 75,000 80,000 80,000 85,000 90,000 95,000 1,545,000 110,000 Interest $82,195 80,694 78,750 77,236 75,056 71,093 68,064 66,123 48,458 26,783 Table 12 Page 1 of 2 Coverage 201% 108% 138% 158% 76% 79% 54% 133% 19% 165% CITY OF ST. ANTHONY, MINNESOTA PLEDGED REVENUE COVERAGE Last Ten 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. 148 Liquor Revenue Bonds Less Net Fiscal Net Sales Operating Available Debt Service Year (Gross Profit) Expenses Revenue Principal Interest Coverage 2005 $1,169,359 $766,082 $403,277 $65,000 $32,150 415% 2006 1,362,796 839,959 522,837 70,000 29,619 525% 2007 1,475,679 985,377 490,302 75,000 24,438 493% 2008 1,475,173 964,663 510,510 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 1,626,398 1,198,064 428,334 - - N/A 2014 1,373,473 1,174,675 198,798 - - 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. 148 Table 12 Page 2 of 2 149 Improvement Bonds Tax Increment Bonds Special Tax Assessment Debt Service Increment Debt Service Collections Principal Interest Coverage Collections Principal Interest Coverage $1,548,836 $485,000 $323,582 192% $410,968 $105,000 $145,381 164% 589,812 3,100,000 390,118 17% 851,309 1,185,000 95,263 66% 441,327 675,000 480,360 38% 1,469,532 180,000 384,296 260% 385,197 1,570,000 495,649 19% 1,682,549 230,000 538,369 219% 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 2,405,000 532,400 18% 1,708,873 365,000 496,588 198% 427,467 3,735,000 555,220 10% 1,364,881 385,000 479,132 158% 587,191 3,695,000 420,070 14% 1,398,000 415,000 459,830 160% 491,988 3,350,000 420,070 13% 1,117,824 4,290,000 445,969 24% 149 CITY OF ST. ANTHONY, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years Fiscal Year Population (1) 2005 8,376 2006 8,361 2007 8,500 2008 8,437 Personal Income (2) Not Available Table 13 Per Capita Personal Unemployment Income(l) Rate (3) 2009 8,514 295,699,734 34,731 2010 8,226 282,682,377 34,365 2011 8,333 310,183,426 37,224 2012 8,417 321,483,107 38,195 2013 8,516 326,729,114 38,367 2014 Not Available Sources: (1) Metropolitan Council Estimates for St. Anthony - for both Ramsey County & Hennepin County. (Z) Personal Income calculated from Per Capita Personal Income and Population. (3) Minnesota Department of Employment and Economic Development - Annual Average Unemployment Rate for Hennepin County 150 3.70% 3.60% 4.10% 4.90% 7.30% 7.00% 6.10% 5.20% 4.60% 3.70% CITY OF ST. ANTHONY, MINNESOTA PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 2014 2005 Table 14 Employer Employees Rank Employees Rank St. Anthony Health Center and Chandler Place 303 1 280 1 Cub Foods 263 2 190 3 ISD No. 282 (St. Anthony - New Brighton) 226 3 264 2 City of St. Anthony 132 4 98 4 B&F Fastener Supply 100 5 - - St. Charles Borromeo Parish 93 6 65 5 North Memoral - Silver Lake Clinic 81 7 - - Happy's Potato Chip Company 50 8 50 7 Berger -Allied Van Lines 49 9 - - Marshall Manufacturing 45 10 - - Culver's - - 51 6 Baker's Square - - 48 8 Francis A. Gross Golf Course - - 45 9 Wendy's - - 39 10 Total 1,342 1,130 151 CITY OF ST. ANTHONY, MINNESOTA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Table 15 Last Ten Fiscal Years Source: City of St. Anthony Full -Time Equivalent Employees as of December 31, 2014 Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General government: Administration 3.00 3.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 Finance 4.50 4.50 4.50 4.75 4.75 4.75 4.50 4.25 4.25 4.25 Police: Officers 20.00 20.00 22.00 23.00 23.00 23.00 23.00 23.00 23.00 23.00 Support staff 2.00 2.00 2.00 2.50 2.50 2.50 2.50 2.50 2.50 2.50 Community service officer 0.50 0.50 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Volunteers (non -paid) 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 Fire: Firefighters 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 Volunteers (paid on call) 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Public works: Administration 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Street 6.00 6.00 6.00 6.00 6.00 6.00 5.00 6.00 6.00 6.00 Park 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Water/Sewer 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Mechanic 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Seasonal* 2.25 2.25 2.25 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Liquor operations: Off -sale: Full-time 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Market Place - part-time 5.25 5.25 5.25 5.25 5.25 6.00 6.00 6.00 6.00 6.00 N Silver Lake Village - part-time 5.25 5.25 5.25 5.25 5.25 6.00 6.00 6.00 6.00 6.00 Total 83.75 83.75 86.25 87.75 87.75 89.25 88.00 87.75 87.75 87.75 Source: City of St. Anthony CITY OF ST. ANTHONY, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM Table 16 Last Ten Fiscal Years * Police statistics are for St Anthony only ** Began monitoring inspection counts in 2006 Source: City of St. Anthony Fiscal Year Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Police: * Moving violation 1,560 2,246 2,357 2,137 2,008 2,305 1,848 1,851 2,068 2,017 Non-moving violations 501 632 627 494 351 397 210 200 396 321 DWI 56 114 26 61 59 49 44 39 34 39 Traffic arrests 515 750 831 815 770 600 673 578 679 633 Gross and misdemeanor arrests 181 162 158 203 193 129 145 164 244 130 Felony arrests 54 67 45 44 32 29 46 37 67 53 Warrant arrests 23 22 29 32 32 28 28 20 23 25 Fire: Emergency responses 1,043 980 976 1,055 996 1,203 1,221 1,267 1,409 1,363 Medical responses 646 704 696 768 718 895 894 933 1,016 1,012 Fires 47 28 40 39 32 34 35 40 26 26 Inspections** N/A 197 78 81 92 97 121 116 88 240 Building inspection: Permits issued 346 292 255 262 283 315 336 272 303 288 Other public works: Street reconstruction/resurfacing (miles) 1 1 2 2 1 1 2 1 1 1 Potholes filled (tons) 7 5 35 20 80 22 100 84 39 34 Water: ,,A New connections - 14 16 10 - 7 1 39 122 28 Water mains breaks 10 3 32 8 9 11 10 10 7 8 Average daily consumption (thousands of gallons) 903 922 990 902 885 806 821 884 822 763 Peak daily consumption (thousands of gallons) 2,192 2,454 2,500 2,157 2,295 1,396 1,586 1,879 1,724 1,635 * Police statistics are for St Anthony only ** Began monitoring inspection counts in 2006 Source: City of St. Anthony CITY OF ST. ANTHONY, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2005 Police: Stations Fleet units Fire stations Other public works: City Streets (miles) Parks and recreation: Acreage Playgrounds Baseball/softball diamonds Soccer/football fields Community centers Liquor operations: On/off sale locations Water: Water mains (miles) Fire hydrants Storage capacity (thousands of gallons) � Wastewater: Sanitary sewers (miles) Storrs sewers (miles) Source: City of St. Anthony Table 17 Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 2,250 1 1 1 1 1 1 1 1 1 12 12 12 12 12 13 13 14 14 14 1 1 1 1 1 1 1 1 1 1 24.7 24.7 24.7 24.7 24.7 24.7 24.7 24.7 24.7 24.7 40 40 40 40 40 40 40 40 40 40 4 4 4 4 4 4 4 4 4 4 7 7 7 7 7 7 7 7 7 7 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 24.7 24.7 24.7 24.7 24.7 24.7 24.7 24.7 24.7 24.7 283 283 287 287 287 287 287 287 287 287 2,250 2,250 2,250 2,250 2,250 2,250 2,250 2,250 2,250 24.7 24.7 24.7 24.7 24.7 24.7 24.7 24.7 24.7 24.7 15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0 4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com June 9, 2015 Ms. Shelly Rueckert City of St. Anthony 3301 Silver Lake Road NE St. Anthony, MN 55418-1699 Dear Shelly: Transmitted herewith are copies of the following reports for the City of St. Anthony, Minnesota for the year ended December 31, 2014:  Comprehensive Annual Financial Report (12 Copies)  Report on Compliance with Minnesota Legal Compliance Audit Guide for Political Subdivisions (12 Copies)  Report on Internal Control over Financial Reporting and on Compliance and Other Matters (12 Copies)  Communication with Those Charged with Governance (12 Copies) Electronic versions of each report have also been sent to you via email. State Reporting Requirements We understand that you will submit one copy of each of the first three reports directly to the Office of the State Auditor. Thank you for the audit engagement. Please express our appreciation to the entire City staff for the aid and cooperation given us during our fieldwork for this engagement. If you have any questions on the above reports, please advise. Sincerely, REDPATH AND COMPANY, LTD. Peggy A. Moeller, CPA PAM/aer A N d C O M P A N V COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE To the Honorable Mayor and Members of the City Council City of St. Anthony, Minnesota We have audited the 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 (the City) for the year ended December 31, 2014. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated December 22, 2014. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Results Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2014. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The City does not have any particularly sensitive estimates in its financial statements. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. 4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com City of St. Anthony, Minnesota Communication with Those Charged with Governance Page 2 Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. There were no uncorrected misstatements that have an effect on our opinion on the financial statements. There were no corrected misstatements identified during the audit. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated June 4, 2015. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the management discussion and analysis, budgetary comparison information, OPEB Schedule of Funding Progress, and the Notes to Required Supplementary Information, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI. City of St. Anthony, Minnesota Communication with Those Charged with Governance Page 3 We were engaged to report on the combining and individual nonmajor fund financial statements and schedules and the supplementary financial information, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We are not engaged to report on the introductory and statistical sections, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it. Restriction of Use This information is intended solely for the use of the City of St. Anthony, Minnesota's management and City Council, and is not intended to be, and should not be, used by anyone other than these specified parties. 4aA 4nC) 607paZW , -�� REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 4, 2015 A N 0 O M P A N V INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GO VERNMENT A UDITING STANDARDS To the Honorable Mayor and Members of the City Council and Management City of St. Anthony, Minnesota We have audited, in accordance with the 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, the 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, 2014, and the related notes to the financial statements, which collectively comprise the City of St. Anthony, Minnesota's basic financial statements and have issued our report thereon dated June 4, 2015. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of St. Anthony, Minnesota's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of St. Anthony, Minnesota's internal control. Accordingly, we do not express an opinion on the effectiveness of the City of St. Anthony, Minnesota's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these 4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com Report on Internal Control over Financial Reporting and on Compliance and Other Matters Page 2 limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify a deficiency in internal control, described in the accompanying Schedule of Findings and Responses as finding 2014-001 that we consider to be a signficant deficiency. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of St. Anthony, Minnesota's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. City of St. Anthony, Minnesota's Response to Finding The City of St. Anthony, Minnesota's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Responses. The City of St. Anthony, Minnesota's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 4, 2015 A N o C O M P A N V MINNESOTA LEGAL COMPLIANCE REPORT To the Honorable Mayor and Members of the City Council City of St. Anthony, Minnesota We have audited, 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, the 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, 2014 and the related notes to the financial statements, and have issued our report thereon dated June 4, 2015. The Minnesota Legal Compliance Audit Guide for Political Subdivisions, promulgated by the State Auditor pursuant to Minnesota Statutes Section 6.65, contains seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financings. Our audit considered all of the listed categories. In connection with our audit, nothing came to our attention that caused us to believe that the City of St. Anthony, Minnesota failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Political Subdivisions. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City of St. Anthony, Minnesota's noncompliance with the above referenced provisions. The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 4, 2015 4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com