Loading...
HomeMy WebLinkAbout2015 CAFRCOMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF ST. ANTHONY, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2015 Prepared By: Finance Department Shelly Rueckert, Finance Director - This page intentionally left blank - CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Page Reference No. Letter of Transmittal 3 Organization 7 Organizational Chart 8 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 92 Schedule of Funding Progress - Other Post Employment Benefits Plan Statement 11 97 Schedule of Proportionate Share of Net Pension Liability - General Employees Retirement Fund Statement 12 98 Schedule of Pension Contributions - General Employees Retirement Fund Statement 13 99 Schedule of Proportionate Share of Net Pension Liability - Public Employees Police and Fire Fund Statement 14 100 Schedule of Pension Contributions - Public Employees Police and Fire Fund Statement 15 101 I. INTRODUCTORY SECTION II. FINANCIAL SECTION CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Page Reference No. Schedule of Changes in the Net Pension Liability and Related Ratios - St. Anthony Fire Department Relief Association Statement 16 102 Schedule of Contributions - St. Anthony Fire Department Relief Association Statement 17 103 Notes to RSI 104 Combining and Individual Nonmajor Fund Financial Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds Statement 18 110 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds Statement 19 111 Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 20 114 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Special Revenue Funds Statement 21 115 Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 22 118 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Debt Service Funds Statement 23 119 Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 24 122 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Capital Project Funds Statement 25 123 Special Revenue Funds: Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Community Center Fund Statement 26 124 Police Forfeiture Fund Statement 27 125 Recycling Fund Statement 28 126 HRA Fund Statement 29 127 Fire Education/Training Fund Statement 30 128 Statement of Changes in Assets and Liabilities - Agency Fund Statement 31 129 Supplementary Financial Information: Street Improvement Debt Service Fund: Balance Sheet Exhibit 1 132 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 2 134 HRA Debt Service Fund: Balance Sheet Exhibit 3 136 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 4 137 HRA Projects Fund: Balance Sheet Exhibit 5 138 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 6 139 Street Improvement Project Fund: CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Page Reference No. Balance Sheet Exhibit 7 140 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 8 141 Water and Sewer Enterprise Fund: Schedule of Revenues, Expenses and Changes in Fund Net Position Exhibit 9 142 Financial Trends: Net Position by Component Table 1 144 Changes in Net Position Table 2 146 Fund Balances - Governmental Funds Table 3 148 Changes in Fund Balances - Governmental Funds Table 4 149 Revenue Capacity: Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 150 Direct and Overlapping Property Tax Rates Table 6 151 Principal Property Taxpayers Table 7 152 Property Tax Levies and Collections Table 8 153 Debt Capacity: Ratios of Outstanding Debt by Type Table 9 154 Direct and Overlapping Governmental Activities Debt Table 10 157 Legal Debt Margin Information Table 11 158 Pledged Revenue Coverage Table 12 160 Demographic and Economic: Demographic and Economic Statistics Table 13 164 Principal Employers Table 14 165 Operating Information: Full-Time Equivalent City Government Employees by Function/Program Table 15 166 Operating Indicators by Function/Program Table 16 167 Capital Asset Statistics by Function/Program Table 17 168 III. STATISTICAL SECTION (Unaudited) - This page intentionally left blank - I. INTRODUCTORY SECTION 1 - This page intentionally left blank - 2 3301 Silver Lake Road, St. Anthony, MN 55418-1699●www.ci.saint-anthony.mn.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. June 9, 2016 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, 2015. 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, 2015. 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 8,965. 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. 3 The City is served by Independent School District (IS D) #282 (St. Anthony), which has a 2014/2015 enrollment of approximately 1,856, 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 l(A) & 7(B) 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 30th. 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 experiences redevelopment activity in commercial and industrial areas and 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. 5 SHARED SERVICES Grants: Each year, the City actively participates in Federal, State and County administered grants. In 2015 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. State of Minnesota - Vest Grant. C. Ramsey County - Safe and Sober Grant. D. Minnesota Board of Firefighter Training & Education Grant. E. Rice Creek Watershed Grant - Mirror Lake Project. F. Hennepin County Recycling Grant. G. Ramsey County Recycling Grant. Partnerships: The City partners with local businesses, civic organizations and the Chamber of Commerce to provide a variety of community safety and education programs. 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 Shelly Rueckert City Manager Finance Director 6 CITY OF ST. ANTHONY, MINNESOTA ORGANIZATION Term Expires Mayor: Jerry Faust December 31, 2019 Council Members: Hal Gray December 31, 2019 Bonnie Brever December 31, 2019 Randy Stille December 31, 2017 Jan Jenson December 31, 2017 City Manager: Mark Casey Appointed Finance Director: Shelly Rueckert Appointed December 31, 2015 7 1 Part time Employee 12 Reserve Officers Engineer - WSB & Associates Financial - Ehlers & Associates Legal - Dorsey & Whitney Planner - WSB & Associates Full-Time Positions = 58 Part-Time Positions = 51 Public Works Seasonal = 10 Police Reserves (Unpaid) = 12 Building Inspections - City of New Brighton 26 Full time Employees4 Full time Employees City Clerk POLICE St. Anthony Organizational Chart LIQUOR OPERATIONS PUBLIC WORKS 14 Full time Employees 2015 1 Part Time Employee ADMINISTRATION 7 Full time Employees 24 Part time Employees FIRE 10 Seasonal Employees MAYOR AND COUNCIL MEMBERS Planning Commission Consultants Parks Commission City Manager 5 Full time Employees 25 Part time Employees FINANCE 8 II. FINANCIAL SECTION 9 - This page intentionally left blank - 10 4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com 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, 2015, 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. 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, 2015, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As described in Note 7 to the financial statements, the City of St. Anthony, Minnesota adopted new accounting guidance, GASB Statement No. 68, Accounting and Financial Reporting for Pensions – an Amendment of GASB Statement No. 27 for the year ended December 31, 2015. Our opinion is not modified with respect to this matter. Report on Summarized Comparative Information We have previously audited the City of St. Anthony, Minnesota’s 2014 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 4, 2015. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2014 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, the budgetary comparison information, the schedule of funding progress, the schedules of proportionate share of pension liability and the schedules of pension contributions, on pages 15-25 and 92-104, 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 12 assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 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 9, 2016, 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 9, 2016 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, 2015. 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 $24,183,945 (net position).  Net position of the government-wide financial statements was negatively impacted in the current year by $4,454,097 due to the required implementation of a new accounting standard. This is more fully described on page 18.  The City’s total net position increased by $1,396,389 from the prior year’s 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 $7,550,160, a decrease of $1,543,684 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 $2,338,600 or 41.65% of total General Fund Budget expenditures.  The City of St. Anthony’s total bonded debt decreased by $1,095,000 (3.25%) during the current fiscal year. The key factors in this decrease were; 1) payoff of 2008A G.O. Improvement bonds totaling $1,390,000; 2) principal retirement of $2,340,000; 3) issuance of the 2015A $2,580,000 G.O. Improvement bonds; 4) the payoff and refunding of 2006 Tax Increment revenue bonds with 2015B G.O. Tax Increment Revenue Refunding bonds for a net increase in debt of $55,000. 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. 15 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. 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 outflows 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. 16 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. The City of St. Anthony, Minnesota maintains 21 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 TIF Debt Service, HRA TIF Improvements and Street Improvement Projects, all of which are considered to be major funds. Data from the other 16 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 and pension benefits. 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. 17 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 18 through 25 of this report. 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 $24,183,945 at the close of the most recent fiscal year. The City’s overall increase in the net position for 2015 was $1,396,389 before implementation of GASB 68, described below. City of St. Anthony, Minnesota’s Net Position Governmental Activities Business-Type Activities Totals 2015 2014 2015 2014 2015 2014 Current and other assets $10,650,903 $12,063,386 $6,591,829 $6,538,350 $17,242,732 $18,601,736 Capital assets 34,662,848 38,838,423 13,394,598 7,407,140 48,057,446 46,245,563 Total assets $45,313,751 $50,901,809 $19,986,427 $13,945,490 $65,300,178 $64,847,299 Total deferred outflows of resources $1,080,208 $0 $0 $0 $1,080,208 $0 Long term liabilities outstanding $35,227,963 $29,949,418 $1,329,496 $1,432,173 $36,557,459 $31,381,591 Other liabilities 4,013,993 5,428,134 864,088 906,765 4,878,081 6,334,899 Total liabilities $39,241,956 $35,377,552 $2,193,584 $2,338,938 $41,435,540 $37,716,490 Total deferred inflows of resources $760,901 $0 $0 $0 $760,901 $0 Net position: Invested in capital assets net of related debt $10,604,121 $14,953,582 $12,143,158 $6,036,192 $22,747,279 $20,989,774 Restricted 6,178,866 5,795,349 - - 6,178,866 5,795,349 Unrestricted (10,391,885) (5,224,674) 5,649,685 5,570,360 (4,742,200) 345,686 Total net position $6,391,102 $15,524,257 $17,792,843 $11,606,552 $24,183,945 $27,130,809 The City’s net position increased by $1,396,389 in 2015. The key element for the increase was revenues exceeded expenditures. In addition, the City adopted new accounting guidance, GASB Statement No. 68, Accounting and Financial Reporting for Pensions – an Amendment of GASB Statement No. 27 for the year ended December 31, 2015. Essentially, the standard required the unfunded portion of defined benefit pension plans to be reported by all participating employers. Recording the net pension liability and the pension related deferred outflows and inflows of resources do not change the City’s future funding requirements or obligations under the plans, which are determined by Minnesota statutes. 18 As a result, net position was negatively impacted by $4,454,097 at December 31, 2015 due to the implementation of this standard. Pension-related amounts included in the above schedule related to the standard are as follows: Deferred outflows of resources $1,080,208 Noncurrent assets 151,568 Deferred inflows of resources (760,901) Noncurrent liabilities (4,924,972) Total ($4,454,097) City of St. Anthony, Minnesota’s Changes in Net Position Governmental Activities Business-Type Activities Totals 2015 2014 2015 2014 2015 2014 Revenues: Program revenue: Charges for services $2,414,912 $2,374,306 $7,793,551 $7,878,288 $10,208,463 $10,252,594 Operating grants and contributions 499,126 499,538 - - 499,126 499,538 Capital grants and contributions 1,367,745 1,070,975 - - 1,367,745 1,070,975 General revenue: Property taxes 5,893,900 6,030,558 - - 5,893,900 6,030,558 Other taxes 1,121,627 1,131,896 - - 1,121,627 1,131,896 Grants and contributions - not restricted to specific programs 516,015 461,964 - - 516,015 461,964 Other 326,589 326,758 175,071 172,956 501,660 499,714 Total revenues 12,139,914 11,895,995 7,968,622 8,051,244 20,108,536 19,947,239 Expenses: General government 1,342,360 1,116,100 - - 1,342,360 1,116,100 Public safety 4,757,637 4,644,185 - - 4,757,637 4,644,185 Public works 2,741,411 2,711,291 - - 2,741,411 2,711,291 Parks and recreation 592,892 608,966 - - 592,892 608,966 Housing and redevelopment 596,444 575,738 - - 596,444 575,738 Interest on long-term debt 845,856 1,044,635 - - 845,856 1,044,635 Liquor - - 5,728,876 5,879,240 5,728,876 5,879,240 Water - - 869,446 931,090 869,446 931,090 Water Filtration and Purification - - 185,964 239,074 185,964 239,074 Sewer - - 1,051,261 984,182 1,051,261 984,182 Total expenses 10,876,600 10,700,915 7,835,547 8,033,586 18,712,147 18,734,501 Excess before transfers 1,263,314 1,195,080 133,075 17,658 1,396,389 1,212,738 Transfers (6,053,216) (17,982) 6,053,216 17,982 - - Increase (decrease) in net position (4,789,902) 1,177,098 6,186,291 35,640 1,396,389 1,212,738 Net position - January, as previously reported 15,524,257 14,347,159 11,606,552 11,570,912 27,130,809 25,918,071 Prior period adjustment (4,343,253) - - - (4,343,253) - Net position - January, as restated 11,181,004 14,347,159 11,606,552 11,570,912 22,787,556 25,918,071 Net position - December 31 $6,391,102 $15,524,257 $17,792,843 $11,606,552 $24,183,945 $27,130,809 19 Governmental Activities. Governmental activities decreased the City of St. Anthony’s net position by $4,789,902 compared to prior year increase of $1,177,098. The key element for this change relates to the City contributing assets from Governmental Activities to Business-Type Activities. For the most part, increases in expenses closely paralleled the combining factors of inflation and growth in the demand for services. Charges for services 20%Operating grants and contributions 4% Capital grants and contributions 11%Property taxes 49% Other taxes 9% Grants and contributions not restricted to specific programs 4% Other 3% Revenues by Source - Governmental Activities 20 Business-type activities. Business-type activities increased net position by $6,186,291. The key factor for the decrease was assets were contributed to the Water/Sewer Funds by the Street Improvement Funds and assets were contributed to the Stormwater Utility Fund by the Stormwater Improvement Fund. Rate increases for all utility services were made for 2015 and 2016 billings. 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 $7,550,160, a decrease of $1,543,684 in comparison with the prior year amounts. The ending fund balance by GASB 54 designation is as follows: Nonspendable $109,569 Restricted 6,491,789 Committed 94,107 Assigned 578,258 Unassigned 276,437 Total $7,550,160 Charges for services 99% Miscellaneous 1% Revenues by Source - Business-Type Activities 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 $2,338,600, while total fund balance reached $2,446,012. 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 36.5% of total General Fund expenditures and total fund balance represents 38.1% of that same amount. During the current fiscal year, the fund balance in the General Fund decreased by $29,469. The Street Improvement Debt Service Fund decreased by $962,051 as debt was refinanced in 2014 and proceeds were used for retirement of debt in early 2015. The Street Improvement Project Funds decreased by $293,107 substantially due to preliminary costs related to the 2016 Street improvements were greater than 2015 preliminary costs. Each year these costs are funded by subsequent year’s bond proceeds. Non-major Special Revenue Funds increased by $181,250 resulting in an ending balance of $77,040, substantially due to additional transfer revenue for the HRA fund. Non-major Debt Service Funds had a total fund balance of $870,095, all of which is restricted for the payment of debt service. The net decrease in fund balance during the current year in the non- major debt service funds was $128,716, substantially due to the Storm Water and State aid bonds being retired and the funds closed in 2015. Non-major Capital Project Funds had a total fund balance of $552,910, a decrease of $316,042, substantially due to the transfers to close the Storm Water Improvement in 2015 and transfers to other funds to eliminate negative cash or fund balances. 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, Water and Sewer Funds, and Stormwater Utility Fund at the end of the year combined was $17,809,786. The total net position for each fund was: Liquor – $2,114,244; Water and Sewer – $9,884,913; Stormwater Utility - $5,810,629. General Fund Budgetary Highlights Variances from actual to budget can be briefly summarized as follows:  Licenses and permits were $89,160 greater than budget primarily due to construction related permits being $75,297 greater than budget based of a high level of activity.  General property taxes were $41,019 less than budget due to delinquent tax and excess tax increment collections being less than budgeted.  Charges for services were less than budget by $24,984 due to contracted gasoline cost per gallon being less than budget so charges for gasoline to other governmental reflected this lesser cost.  Other revenues were $51,982 greater than budget due to: dividends on workers compensation insurance were not expected to be distributed by the League of Minnesota 22 Insurance Trust for 2015; conservative budgeting for interest earnings and investment gains; greater activity associated with refunds and reimbursements of costs than anticipated.  Legal contracted services were greater than budget by $24,279 due to costs associated with monitoring and managing a land use settlement agreement.  Public Works was $62,762 less than budget due to: contracted gasoline price per gallon being less than budgeted; winter conditions were mild resulting in savings on overtime and seasonal rink costs; street lighting and repair and maintenance costs were less than budgeted.  Police protection was $97,615 less than budget due to the result of changes in benefit elections; contracted gasoline cost per gallon being less than budgeted; wages and pension costs were budgeted conservatively; use of jail services was lower than budgeted.  Protective Inspections – other services and charges was $42,111 greater than budget due to greater construction permit 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, 2015 amounts to $48,057,446 (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 3.92%. 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 Highway safety improvement project, Southeast Regional Stormwater treatment system and the Mirror Lake storm water project. City of St. Anthony, Minnesota’s Capital Assets Governmental Activities Business-Type Activities Totals 2015 2014 2015 2014 2015 2014 Land $1,662,883 $3,747,184 $2,089,954 $5,653 $3,752,837 $3,752,837 Land improvement 555,181 555,181 - - 555,181 $555,181 Buildings and structures 9,966,796 9,836,936 3,883,283 3,883,283 13,850,079 $13,720,219 Furniture and fixtures 3,994,838 3,899,084 1,726,693 1,455,295 5,721,531 $5,354,379 Software intangibles 6,823 6,823 26,022 26,022 32,845 $32,845 Infrastructure/streets 33,806,042 32,438,813 10,261,912 8,636,295 44,067,954 $41,075,108 Storm sewers 428,469 428,469 - - 428,469 $428,469 Storm water - 2,253,147 2,253,147 - 2,253,147 $2,253,147 Less accumulated depreciation (18,924,558) (17,406,583) (7,574,877) (6,771,562) (26,499,435) ($24,178,145) Construction in progress 3,166,374 3,079,369 728,464 172,154 3,894,838 $3,251,523 Total $34,662,848 $38,838,423 $13,394,598 $7,407,140 $48,057,446 $46,245,563 Additional information on the City of St. Anthony, Minnesota’s capital assets can be found in Note 5. 23 Long-term debt. At the end of the current fiscal year, the City of St. Anthony, Minnesota had total bonded debt outstanding of $32,610,000. Of this amount, $23,530,000 comprises debt backed by special assessments and the full faith and credit of the City, $7,865,000 is backed by tax increments and $1,215,000 is backed by revenues sources from the City of St. Anthony, Minnesota’s water/sewer funds. In addition, the City of St. Anthony, Minnesota’s debt represents the liability for compensated absences $668,432, net pension liability of $4,924,972 and OPEB liability of $514,843. City of St. Anthony, Minnesota’s Outstanding Debt General Obligation and Revenue Bonds Governmental Activities Business-Type Activities Totals 2015 2014 2015 2014 2015 2014 General obligation bonds $23,530,000 $24,305,000 $ - $ - $23,530,000 $24,305,000 G.O. revenue bonds - 150,000 1,215,000 1,330,000 1,215,000 1,480,000 G.O. tax increment bonds 7,865,000 7,920,000 - - 7,865,000 7,920,000 Issuance premiums (discounts) 618,259 482,350 36,440 40,948 654,699 523,298 Total $32,013,259 $32,857,350 $1,251,440 $1,370,948 $33,264,699 $34,228,298 The City of St. Anthony’s total bonded debt decreased $1,095,000 (3.25%) during the current fiscal year. The key factors in this decrease were; The key factors in this decrease were; 1) payoff of 2008A G.O. Improvement bonds totaling $1,390,000; 2) principal retirement of $2,340,000; 3) issuance of the 2015A $2,580,000 G.O. Improvement bonds; 4) the payoff and refunding of 2006 Tax Increment revenue bonds with Tax Increment 2015B G.O. Tax Increment bonds for a net increase in debt of $55,000. The City of St. Anthony, Minnesota maintains an “AA” rating from Standard and Poor’s for general obligation debt. State statutes limit the amount of general obligation debt the City may issue to 3% of its total market value. The current debt limitation for the City of St. Anthony, Minnesota is $21,500,127, which is in excess of the City of St. Anthony, Minnesota’s $4,430,000 outstanding general obligation debt, excluding tax increment and special assessment 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 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 present 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 2016 fiscal year. 24 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 Statement 1 December 31, 2015 Governmental Business-Type Total Activities Activities 2015 Assets: Cash and investments $8,847,871 $3,696,648 $12,544,519 Accrued interest 25,813 - 25,813 Due from other governmental units 201,698 638,054 839,752 Internal balances (843,089) 843,089 - Accounts receivable - net 52,818 540,504 593,322 Prepaid items 106,697 27,989 134,686 Property taxes receivable 167,398 180 167,578 Special assessments receivable 1,865,316 - 1,865,316 Funds held for others 71,941 - 71,941 Inventories - at cost 2,872 845,365 848,237 Capital assets - net: Nondepreciable 4,829,257 2,818,418 7,647,675 Depreciable 29,833,591 10,576,180 40,409,771 Net pension asset 151,568 - 151,568 Total assets 45,313,751 19,986,427 65,300,178 Deferred outflows of resources: Related to pensions 1,080,208 - 1,080,208 Liabilities: Accounts payable 561,896 328,274 890,170 Contracts payable 153,565 197,784 351,349 Deposits payable 2,000 71,555 73,555 Due to other governmental units 58,907 68,738 127,645 Salaries payable 47,332 17,356 64,688 Accrued interest payable 296,750 10,125 306,875 Compensated absences payable: Due within one year 209,333 50,748 260,081 Due in more than one year 459,099 111,299 570,398 Bonds and notes payable (net of unamortized premiums and discounts): Due within one year 2,684,210 119,508 2,803,718 Due in more than one year 29,329,049 1,131,932 30,460,981 Other post employment benefits: Due in more than one year 514,843 86,265 601,108 Net pension liability: Due in more than one year 4,924,972 - 4,924,972 Total liabilities 39,241,956 2,193,584 41,435,540 Deferred inflows of resources: Related to pensions 760,901 - 760,901 Net position: Net investments in capital assets 10,604,121 12,143,158 22,747,279 Restricted for: Debt service 6,147,172 - 6,147,172 Redevelopment activity 12,411 - 12,411 Public safety 19,283 - 19,283 Unrestricted (10,391,885) 5,649,685 (4,742,200) Total net position $6,391,102 $17,792,843 $24,183,945 Primary Government 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, 2015 Program Revenues Charges For Functions/Programs Expenses Services Primary government: Governmental activities: General government $1,342,360 $382,067 Public safety 4,757,637 1,408,607 Public works 2,741,411 389,634 Parks and recreation 592,892 234,604 Housing and redevelopment 596,444 - Interest on long-term debt 845,856 - Total governmental activities 10,876,600 2,414,912 Business-type activities: Liquor 5,728,876 5,893,916 Water 869,446 900,412 Water Filtration and Purification 185,964 45,655 Sewer 1,051,261 953,568 Total business-type activities 7,835,547 7,793,551 Total primary government $18,712,147 $10,208,463 The accompanying notes are an integral part of these financial statements. 30 Statement 2 Operating Capital Grants and Grants and Governmental Business-Type Total Contributions Contributions Activities Activities 2015 $46,257 $ - ($914,036) $ - ($914,036) 309,710 12,500 (3,026,820) - (3,026,820) 143,159 1,355,245 (853,373) - (853,373) - - (358,288) - (358,288) - - (596,444) - (596,444) - - (845,856) - (845,856) 499,126 1,367,745 (6,594,817) 0 (6,594,817) - - - 165,040 165,040 - - - 30,966 30,966 - - - (140,309) (140,309) - - - (97,693) (97,693) 0 0 0 (41,996) (41,996) $499,126 $1,367,745 (6,594,817) (41,996) (6,636,813) General revenues: General property taxes 5,893,900 - 5,893,900 Tax increment taxes 1,121,627 - 1,121,627 Grants and contributions not restricted to specific programs 516,015 - 516,015 Unrestricted investment earnings 146,023 86,407 232,430 Gain on sale of capital assets 7,653 - 7,653 Other 172,913 88,664 261,577 Transfers (6,053,216) 6,053,216 - Total general revenues and transfers 1,804,915 6,228,287 8,033,202 Change in net position (4,789,902) 6,186,291 1,396,389 Net position - January 1, as previously reported 15,524,257 11,606,552 27,130,809 Prior period adjustment (4,343,253) - (4,343,253) Net position - January 1, as restated 11,181,004 11,606,552 22,787,556 Net position - December 31 $6,391,102 $17,792,843 $24,183,945 Program Revenues Net (Expense) Revenue and Changes in Net Position Primary Government The accompanying notes are an integral part of these financial statements. 31 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2015 With Comparative Totals For December 31, 2014 General Fund Street Improvement Debt Service Fund Assets Cash and investments $1,845,457 $3,693,186 Funds held in trust - - Accrued interest 25,813 - Due from other governmental units 47,054 - Interfund receivable 563,938 - Accounts receivable - net 31,354 - Prepaid items 104,540 - Property taxes receivable: Delinquent 57,124 24,387 Due from county - 2,299 Special assessments receivable - 1,838,071 Funds held by others - - Inventories 2,872 - Total assets $2,678,152 $5,557,943 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $77,791 $774 Contracts payable - - Interfund payable - - Deposits payable 2,000 - Interfund loan payable - - Due to other governmental units 49,241 6,227 Salaries payable 45,984 - Total liabilities 175,016 7,001 Deferred inflows of resources: Unavailable revenue 57,124 1,861,831 Total deferred inflows of resources 57,124 1,861,831 Fund balance (deficit): Nonspendable 107,412 - Restricted - 3,689,111 Committed - - Assigned - - Unassigned 2,338,600 - Total fund balance (deficit)2,446,012 3,689,111 Total liabilities, deferred inflows of resources, and fund balance (deficit) $2,678,152 $5,557,943 The accompanying notes are an integral part of these financial statements. 32 Statement 3 HRA TIF Debt Service HRA TIF Improvements Street Improvement Project Fund Other Governmental Funds Intra-Activity Eliminations 2015 2014 $12,649 $1,360,351 $367,197 $1,486,149 $ - $8,764,989 $9,184,444 - - - - - - 1,290,049 - - - - - 25,813 24,434 - - 144,803 9,841 - 201,698 296,805 - - - - (414,064) 149,874 - 4,097 - - 17,367 - 52,818 32,620 - - - 2,157 - 106,697 86,579 - 69,656 - 9,794 - 160,961 149,086 - 4,138 - - - 6,437 121,174 - - - 27,245 - 1,865,316 1,789,048 - - - 71,941 - 71,941 71,513 - - - - - 2,872 6,188 $16,746 $1,434,145 $512,000 $1,624,494 ($414,064) $11,409,416 $13,051,940 $1,425 $233,057 $216,806 $32,043 $ - $561,896 $440,853 - - 153,565 - - 153,565 309,638 - - 414,064 - (414,064) - - - - - - - 2,000 2,000 - 959,326 - 50,580 - 1,009,906 1,015,526 - - - 3,439 - 58,907 42,894 - - - 1,348 - 47,332 209,051 1,425 1,192,383 784,435 87,410 (414,064) 1,833,606 2,019,962 - 69,656 - 37,039 - 2,025,650 1,938,134 0 69,656 0 37,039 0 2,025,650 1,938,134 - - - 2,157 - 109,569 92,767 15,321 1,885,568 - 901,789 - 6,491,789 7,627,714 - - - 94,107 - 94,107 78,180 - - - 578,258 - 578,258 1,318,583 - (1,713,462) (272,435) (76,266) - 276,437 (23,400) 15,321 172,106 (272,435) 1,500,045 0 7,550,160 9,093,844 $16,746 $1,434,145 $512,000 $1,624,494 ($414,064) $11,409,416 $13,051,940 Fund balance reported above $7,550,160 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.34,662,848 Other long-term assets are not available to pay for current-period expenditures and, therefore, are reported as unavailable in the funds. 2,025,650 Net pension asset related to the Saint Anthony Fire Department Relief Association. 151,568 Deferred outflows of resources related to the Saint Anthony Fire Department Relief Association. 49,346 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. (32,824,852) Internal service funds are used by management to charge the cost of employee vacation, severance and pension benefits to individual funds. The assets and liabilities are included in the governmental activities on the statement of net position. (5,223,618) Net position of governmental activities $6,391,102 Total Governmental Funds 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 GOVERNMENTAL FUNDS For The Year Ended December 31, 2015 With Comparative Totals For The Year Ended December 31, 2014 General Fund Street Improvement Debt Service Fund HRA TIF Debt Service Revenues: General property taxes $3,437,635 $1,755,161 $ - Tax increment collections - - - Licenses, fees and permits 296,465 - - Intergovernmental 932,204 - - Special assessments - 352,353 - Charges for services 1,555,006 - - Cable franchise fees 108,104 - - Fines and forfeits 125,102 - - Investment income 22,960 26,026 63 Contributions and donations 3,403 - - Refunds and reimbursement 31,411 - - Miscellaneous 44,811 - - Total revenues 6,557,101 2,133,540 63 Expenditures: Current: General government 874,429 - - Public safety 4,338,477 - - Public works 900,839 - - Parks and recreation 259,203 - - Nondepartmental 40,139 - - Housing and redevelopment - - - Capital outlay: General government - - - Public safety - - - Public works - - - Parks and recreation - - - Debt service: Principal - 2,870,000 245,000 Interest - 477,386 336,268 Paying agent fees - 4,940 4,634 Professional service - 15,752 - Issuance costs - 477 84,152 Construction/acquisition costs - - - Developer incentives - - - Total expenditures 6,413,087 3,368,555 670,054 Revenues over (under) expenditures 144,014 (1,235,015) (669,991) Other financing sources (uses): Bonds issued - 43,982 - Refunding bonds issued - - 4,310,000 Premium on debt issued - - 110,659 Payment to refunded bond escrow agent - - (4,332,935) Sale of capital assets - - - Transfers in 195,060 228,982 587,200 Transfers out (368,543) - - Total other financing sources (uses) (173,483) 272,964 674,924 Net change in fund balance (29,469) (962,051) 4,933 Fund balance (deficit) - January 1 2,475,481 4,651,162 10,388 Fund balance (deficit) - December 31 $2,446,012 $3,689,111 $15,321 The accompanying notes are an integral part of these financial statements. 34 Statement 4 HRA TIF Improvements Street Improvement Project Fund Other Governmental Funds Intra-Activity Eliminations 2015 2014 $ - $ - $704,274 $ - $5,897,070 $6,053,119 1,106,582 - - - 1,106,582 1,117,824 - - - - 296,465 351,102 - 31,123 681,154 - 1,644,481 1,464,479 - 261,452 8,126 - 621,931 491,988 - - 324,514 - 1,879,520 1,787,611 - - - - 108,104 109,009 - - 5,721 - 130,823 126,584 66,122 9,763 20,513 - 145,447 189,216 - - 12,500 - 15,903 45,640 - 70,007 25,832 - 127,250 12,558 - - 852 - 45,663 91,555 1,172,704 372,345 1,783,486 0 12,019,239 11,840,685 15,559 - 58,101 - 948,089 926,501 - - 13,571 - 4,352,048 4,357,563 - - 142,712 - 1,043,551 1,001,378 - - 187,721 - 446,924 463,057 - - - - 40,139 59,265 1,392 - 117,902 - 119,294 143,863 - - 168,176 - 168,176 38,826 - - 150,645 - 150,645 283,189 - - 67,831 - 67,831 53,143 - - - - - 49,464 - - 635,000 - 3,750,000 7,785,000 93,149 - 113,459 - 1,020,262 1,139,216 - - 812 - 10,386 7,853 - - 1,219 - 16,971 17,104 - 58,053 - - 142,682 185,800 - 3,130,132 620,137 - 3,750,269 2,959,264 475,886 - - - 475,886 431,875 585,986 3,188,185 2,277,286 0 16,503,153 19,902,361 586,718 (2,815,840) (493,800) 0 (4,483,914) (8,061,676) - 2,536,018 - - 2,580,000 2,070,000 - - - - 4,310,000 4,970,000 - 78,034 - - 188,693 158,044 - - - - (4,332,935) - - - 25,860 - 25,860 13,390 - 100,000 958,017 (1,900,647) 168,612 393,499 (587,200) (191,319) (753,585) 1,900,647 - - (587,200) 2,522,733 230,292 0 2,940,230 7,604,933 (482) (293,107) (263,508) 0 (1,543,684) (456,743) 172,588 20,672 1,763,553 - 9,093,844 9,550,587 $172,106 ($272,435) $1,500,045 $0 $7,550,160 $9,093,844 Total Governmental Funds The accompanying notes are an integral part of these financial statements. 35 CITY OF ST. ANTHONY, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 5 EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS For The Year Ended December 31, 2015 2015 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) ($1,543,684) 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. 2,182,983 The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins and donations) is to decrease net position, as follows: (50,430) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 87,516 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.711,892 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.174,406 Transfer out of governmental capital assets contributed to Enterprise Funds. (6,308,128) Internal Service Funds are used by management to charge the cost of severance expense and pension expense to individual funds. This amount is the net income attributable to governmental activities.(39,984) Governmental funds report pension contributions as expenditures, however, pension expense is reported in the Statement of Activities. This is the amount by which the St. Anthony Fire Department Relief Association pension expense exceeded pension contributions: Pension contributions $54,725 Pension expense (59,198) (4,473) Change in net position of governmental activities (statement 2) ($4,789,902) The accompanying notes are an integral part of these financial statements. 36 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF NET POSITION Statement 6 PROPRIETARY FUNDS December 31, 2015 With Comparatvie Totals For Enterprise Fund For December 31, 2014 Governmental Activities - Liquor Water/Sewer/ Water Plant Stormwater Utility Internal Service Fund Assets:2015 2014 Current assets: Cash and cash equivalents $427,658 $3,268,990 $ - $3,696,648 $4,125,755 $82,882 Interfund loan receivable - current portion - 5,620 - 5,620 125,620 - Receivables: Accounts 15,233 525,271 - 540,504 501,365 - Due from other governments - 45,835 592,399 638,234 - - Prepaid items 11,228 16,761 - 27,989 26,102 - Inventories - at cost 845,365 - - 845,365 869,602 - Total current assets 1,299,484 3,862,477 592,399 5,754,360 5,648,444 82,882 Noncurrent assets: Interfund loan receivable - noncurrent portion - 1,004,286 - 1,004,286 889,906 - Capital assets: Land - 5,653 2,084,301 2,089,954 5,653 - Construction in progress - - 728,464 728,464 172,154 - Buildings and structures 1,875,328 2,007,955 - 3,883,283 3,883,283 - Furniture, fixtures and equipment 418,325 1,308,368 - 1,726,693 1,455,295 - Distribution and collection system - 9,277,595 3,237,464 12,515,059 8,636,295 - Software intangibles 26,022 - - 26,022 26,022 - Total capital assets 2,319,675 12,599,571 6,050,229 20,969,475 14,178,702 0 Less: Allowance for depreciation (1,109,626) (6,045,949) (419,302) (7,574,877) (6,771,562) - Net capital assets 1,210,049 6,553,622 5,630,927 13,394,598 7,407,140 0 Total noncurrent assets 1,210,049 7,557,908 5,630,927 14,398,884 8,297,046 0 Total assets 2,509,533 11,420,385 6,223,326 20,153,244 13,945,490 82,882 Deferred outflows of resources: Related to pensions - - - - - 1,030,862 Liabilities: Current liabilities: Accounts payable 219,739 43,496 65,039 328,274 368,016 - Contracts payable - - 197,784 197,784 152,642 - Interfund payable - - 149,874 149,874 - - Due to other governmental units 62,690 6,048 - 68,738 68,627 - Salaries payable 8,399 8,957 - 17,356 61,792 - Accrued interest payable - 10,125 - 10,125 11,083 - Refundable deposits - 71,555 - 71,555 77,825 - Compensated absences payable - current portion 18,772 31,976 - 50,748 47,272 209,333 Bonds and notes payable - current portion - 119,508 - 119,508 119,508 - Total current liabilities 309,600 291,665 412,697 1,013,962 906,765 209,333 Noncurrent liabilities: Compensated absences payable - noncurrent portion 41,170 70,129 - 111,299 106,454 459,099 Bonds and notes payable - noncurrent portion - 1,131,932 - 1,131,932 1,251,440 - Other post employement benefits 44,519 41,746 - 86,265 74,279 - Net pension liability - - - - - 4,924,972 Total noncurrent liabilities 85,689 1,243,807 0 1,329,496 1,432,173 5,384,071 Total liabilities 395,289 1,535,472 412,697 2,343,458 2,338,938 5,593,404 Deferred inflows of resources: Related to pensions - - - - - 760,901 Total deferred inflows of resources - - - - - 760,901 Net position: Net investments in capital assets 1,210,049 5,302,182 5,630,927 12,143,158 6,036,192 - Unrestricted 904,195 4,582,731 179,702 5,666,628 5,570,360 (5,240,561) Total net position $2,114,244 $9,884,913 $5,810,629 $17,809,786 $11,606,552 ($5,240,561) Net position reported above $17,809,786 Adjustment to report the cumulative internal balance for the net effect of activity between the internal service fund and the enterprise funds over time. (16,943) Net position of business-type activites (Statement 1) $17,792,843 Business-Type Activities Enterprise Funds Totals 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, 2015 With Comparatvie Totals For Enterprise Funds For The Year Ended December 31, 2014 Governmental Activities - Liquor Water/Sewer/ Water Plant Stormwater Utility Internal Service Fund 2015 2014 Sales $5,893,916 $ - $ - $5,893,916 $6,078,039 $ - Cost of sales (4,572,858) - - (4,572,858) (4,704,566) - Gross profit 1,321,058 0 0 1,321,058 1,373,473 0 Operating revenues: Customer billings - 1,844,850 - 1,844,850 1,789,849 - Connection charges - 9,130 - 9,130 10,400 - Charges for services - - - - - 596,897 Total operating revenues 0 1,853,980 0 1,853,980 1,800,249 596,897 Total gross profit and operating revenues 1,321,058 1,853,980 0 3,175,038 3,173,722 596,897 Operating expenses: Personal services 695,655 785,143 - 1,480,798 1,457,929 765,630 Supplies 315,899 65,062 - 380,961 402,004 - Contracted services 40,781 156,947 - 197,728 231,139 - Treatment charges (MCES) - 593,381 - 593,381 620,470 - Other 19,421 168,714 - 188,135 228,999 - Depreciation 75,658 308,359 - 384,017 365,521 - Total operating expenses 1,147,414 2,077,606 0 3,225,020 3,306,062 765,630 Operating income (loss) 173,644 (223,626) 0 (49,982) (132,340) (168,733) Nonoperating revenues (expenses): Investment income 4,014 82,393 - 86,407 111,512 576 Intergovernmental revenue - - - - - 24,930 Interest expense - (19,984) - (19,984) (22,275) - Fees and cost of issuance - (742) - (742) (683) - Refunds and reimbursements - 45,655 - 45,655 - - Miscellaneous revenue 72,273 16,391 - 88,664 61,444 - Total nonoperating revenues (expenses) 76,287 123,713 0 200,000 149,998 25,506 Income (loss) before capital contributions and transfers 249,931 (99,913) - 150,018 17,658 (143,227) Capital contributions and transfers: Capital contributions - 677,200 5,630,928 6,308,128 497,781 - Transfers in - - 179,701 179,701 15,645 86,300 Transfers out (249,049) (185,564) - (434,613) (495,444) - Change in net position 882 391,723 5,810,629 6,203,234 35,640 (56,927) Net position - January 1, as previously reported 2,113,362 9,493,190 - 11,606,552 11,570,912 (634,994) Prior period adjustment - - - - - (4,548,640) Net position - January 1, as restated 2,113,362 9,493,190 - 11,606,552 11,570,912 (5,183,634) Net position - December 31 $2,114,244 $9,884,913 $5,810,629 $17,809,786 $11,606,552 ($5,240,561) Net position reported for business-type activities above $17,809,786 Adjustment for the net effect of the current year activity between the internal service fund and the enterprise funds. (16,943) Net position of business-type activites (Statement 2) $17,792,843 Business-Type Activities Enterprise Funds Totals The accompanying notes are an integral part of these financial statements. 38 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF CASH FLOWS Statement 8 PROPRIETARY FUNDS For The Year Ended December 31, 2015 With Comparative Totals For Enterprise Funds For The Year Ended December 31, 2014 Governmental Activities - Liquor Water/Sewer/ Water Plant Stormwater Utility Internal Service Fund 2015 2014 Cash flows from operating activities: Receipts from customers and users $5,880,682 $1,828,075 $ - $7,708,757 $7,834,768 $ - Receipts from interfund charges for pension benefits - - - - - 596,897 Payment to suppliers (5,027,651) (994,002) - (6,021,653) (6,350,037) - Payment to employees (714,050) (790,880) - (1,504,930) (1,432,850) (652,793) Payment to other funds for services provided Miscellaneous revenue 72,273 16,211 - 88,484 61,444 - Net cash flows provided by (used in) operating activities 211,254 59,404 0 270,658 113,325 (55,896) Cash flows from noncapital financing activities: Transfer from other funds - - - - 15,645 86,300 Transfer to General Fund (249,049) (185,564) - (434,613) (264,244) - Transfer to Capital Project Funds - - - - (231,200) - Intergovernmental revenue - - - - - 24,930 Change in interfund receivable/payable - - - - - - Net cash flows provided by (used in) noncapital financing activities (249,049) (185,564) 0 (434,613) (479,799) 111,230 Cash flows from capital and related financing activities: Acquisiton of capital assets - (215,987) - (215,987) (30,937) - Change in interfund loan receivable/payable - 5,620 - 5,620 11,195 - Interest received on interfund receivable - 41,328 - 41,328 41,623 - Principal paid on debt - (115,000) - (115,000) (110,000) - Interest paid on debt - (26,192) - (26,192) (28,383) - Net cash flows provided by (used in) capital and related financing activities 0 (310,231) 0 (310,231) (116,502) 0 Cash flows from investing activities: Investment income 4,014 41,065 - 45,079 69,889 576 Net increase (decrease) in cash and cash equivalents (33,781) (395,326) 0 (429,107) (413,087) 55,910 Cash and cash equivalents - January 1 461,439 3,664,316 - 4,125,755 4,538,842 26,972 Cash and cash equivalents - December 31 $427,658 $3,268,990 $0 $3,696,648 $4,125,755 $82,882 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $173,644 ($223,626) $ - ($49,982) ($132,340) ($168,733) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenue 72,273 16,211 - 88,484 61,444 - Depreciation 75,658 308,359 - 384,017 365,521 - Changes in assets and liabilities: Decrease (increase) in receivables (13,230) (25,905) - (39,135) (43,520) - Decrease (increase) in prepaid items 451 (2,338) - (1,887) (3,126) - Decrease (increase) in inventory 24,237 - - 24,237 (72,202) - Decrease (increase) in deferred outflows of resources - - - - - (765,640) Increase (decrease) in payables (121,779) (13,297) - (135,076) (62,452) 117,576 Increase (decrease) in deferred inflows of resources - - - - - 760,901 Total adjustments 37,610 283,030 0 320,640 245,665 112,837 Net cash provided by operating activities $211,254 $59,404 $0 $270,658 $113,325 ($55,896) Noncash investing, capital and financing activities: Liquor assets in the amount of $0 and $7,125 were contributed to the Water and Sewer Fund in 2015 and 2014, respectively. Water and Sewer System assets in the amount of $677,200 and $490,656 were contributed to the Water/Sewer/Water Plant Fund in 2015 and 2014, respectively. Stormwater assets in the amount of $5,630,928 and $0 were contributed to the Stornwater Utility Fund in 2015 and 2014, respectively. Stormwater fund had noncash transfer in of $179,701, representing receivables and payables balances in 2015. Totals Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. 39 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF FIDUCIARY NET POSITION Statement 9 FIDUCIARY FUND -DEVELOPERS DEPOSIT December 31, 2015 With Comparative Totals For December 31, 2014 2015 2014 Assets: Cash and investments ($4,122) ($1,090) Accounts receivable - net 4,122 1,090 Total assets $0 $0 Liabilities: Deposits payable $ - $ - The accompanying notes are an integral part of these financial statements. 40 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 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 TIF Debt Service Fund, the HRA TIF Improvement 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, 2015 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, 2015 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 TIF Debt Service Fund was established to account for debt associated with Tax Increment Financing Districts of the City. The HRA TIF Improvement Fund was established to account for the construction and redevelopment costs within the City. The Street Improvement Projects Fund was established to account for the construction costs associated with a systematic plan to reconstruct substandard residential streets and alleys. 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. The Stormwater Utility Fund accounts for stormwater service charges which are used to finance the construction and operation of the stormwater and flood protection projects. Additionally, the City reports the following fund types: Internal Service Fund - the Employee Benefit Fund accounts for the liability the City has for employee vacation and severance payments, and is also used to provide pension benefits to other departments of the City on a cost reimbursement basis. 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. 43 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Amounts reported as program revenues include 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the liquor, water and sewer enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for an allowable use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. D. BUDGETS Budgets are legally adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are legally adopted for the General and all Special Revenue Funds. Budgeted expenditure appropriations lapse at year end. Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed by the City because it is at present not considered necessary to assure effective budgetary control or to facilitate effective cash management. E. LEGAL COMPLIANCE - BUDGETS The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1) The City Manager submits to the City Council a proposed operating budget for the upcoming year in August. The operating budget includes proposed revenues and expenditures and the operating levy associated with operations. 2) The City Council and staff meet to review the proposed budget and Council recommends any appropriate changes. 3) Public hearings are conducted in April and December to obtain taxpayer comments and recommendations to the operating budget. 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. 44 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 7) Legal debt obligation indentures determine the appropriation level of debt service tax levies for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to determine and calculate user charges. These debt service and budget amounts represent general obligation bond indenture provisions and net income for operation and capital maintenance and are not reflected in the financial statements. 8) A capital improvement program is reviewed annually by the City Council for the Capital Project Funds. However, appropriations for major projects are not adopted until the actual bid award of the improvement. The appropriations are not reflected in the financial statements. 9) The legal level of budgetary control is at the department level for the General Fund and the fund level for the Special Revenue Funds. Monitoring of budgets is maintained at the expenditure category level (i.e., personal services; materials and supplies; contractual services; and capital outlay) within each program. All amounts over budget have been approved by the City Council through the disbursement process. 10) The City Council may authorize transfer of budgeted amounts between City funds. The City Council made supplemental budgetary appropriations throughout the year. Individual amendments were not material in relation to the original appropriations which were adjusted. The following is a listing of the General Fund departments and Special Revenue Funds whose expenditures exceed budget appropriations: Final Over Budget Actual Budget Major Fund: General Fund Elections $19,672 $23,187 $3,515 Legal 110,750 135,029 24,279 Civil defense 65,227 66,227 1,000 Protective inspections 81,143 123,254 42,111 Nonmajor Funds: Special Revenue Funds: Police forfeiture 6,500 11,108 4,608 Recycling fund 16,468 18,793 2,325 Fire education/training 2,277 2,463 186 F. CASH AND INVESTMENTS Cash and investment balances from all funds 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. 45 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 For purposes of the statement of cash flows, the City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the Proprietary Funds have original maturities of 90 days or less. Therefore, the entire balance in the Proprietary Funds is considered cash equivalents. Funds held in trust represent bond proceeds related to the Public Facilities Lease Revenue bond issue which are being held by a trustee. The trustee is responsible for the investment of these funds. G. RECEIVABLES AND PAYABLES During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. Short-term interfund loans are classified as “interfund receivables/payables.” All short-term interfund receivables and payables at December 31, 2015 are planned to be eliminated in 2016. 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. 46 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 I. SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale. Proceeds of sales from tax forfeit properties are allocated first to the County’s costs of administering all tax forfeit properties. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. GOVERNMENTAL FUND FINANCIAL STATEMENTS Revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments that are collected by the County by December 31 (remitted to the City the following January) are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funds are completely offset by deferred inflow of resources. J. INVENTORIES 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. 47 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 L. CAPITAL ASSETS Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) and intangible assets such as easements and computer software, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Pursuant to GASB Statement 34, in the case of the initial capitalization of general infrastructure assets (i.e. those reported by governmental activities), the City chose to capitalize retroactively to 1980. These assets are reported at estimated historical cost. The City estimated historical cost for the initial reporting of these assets through analysis of original bonding documents. As the City constructs or acquires additional infrastructure assets each period, they will be capitalized and reported at historical cost. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. For the year ended December 31, 2015, 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 Stormwater Treatment Systems 25 – 40 years 48 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 M. COMPENSATED ABSENCES It is the City's policy to permit employees to accumulate earned but unused personal leave benefits. All personal leave pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts associated with governmental fund employees is reported in the Internal Service Severance Fund. In accordance with the provisions of Statement of Government Accounting Standards No. 16, Accounting for Compensated Absences, no liability is recorded for nonvesting accumulating rights to receive personal leave benefits. However, a liability is recognized for that portion of accumulating personal leave benefits that is vested as severance pay. N. LONG-TERM OBLIGATIONS In the government-wide financial statements and proprietary funds in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary funds statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium discount. In the governmental fund financial statements, governmental funds recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. O. FUND BALANCE CLASSIFICATIONS In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable - consists of amounts that are not in spendable form, such as prepaid items. Restricted - consists of amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Committed - consists of internally imposed constraints. These constraints are established by resolution of the City Council. Assigned - consists of internally imposed constraints. These constraints reflect the specific purpose for which it is the City’s intended use. These constraints are established by the City Council and/or management. Pursuant to City Council policy, the City’s Finance Director and/or City Manager are authorized to establish assignments of fund balance. Unassigned - is the residual classification for the general fund and also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, and then use unrestricted resources as they are needed. 49 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 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. 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, 2014, 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 outflows 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 District has one item that qualifies for reporting in this category. It is the pension related deferred outflows of resources reported in the government-wide Statement of Net Position and the proprietary funds Statement of Net Position. 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 50 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 recognized as an inflow of resources (revenue) until that time. The government has pension related deferred inflows of resources reported in the government-wide Statement of Net Position and the proprietary funds Statement of Net Position. The government also has a type of item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental fund balance sheet. The governmental funds report unavailable revenues from the following sources: property taxes, special assessments, and tax increment. U. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS 1. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET POSITION The governmental fund balance sheet includes a reconciliation between fund balance – total governmental funds and net position – governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that “long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds”. The details of this ($32,824,852) difference is as follows: Bonds payable ($31,395,000) Accrued interest payable (296,750) Unamortized bond premium (618,259) Other post-employment benefits (514,843) Net adjustment to reduce fund balance - total governmental funds to arrive at net position - governmental activities.($32,824,852) 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 $2,182,983 difference is as follows: Capital outlay $386,652 Construction/acquisition costs 3,750,269 Current expenditures capitalized 65,184 Depreciation expense (2,019,122) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. $2,182,983 51 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 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 ($50,430) 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. ($50,430) Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. ($50,430) 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 $87,516 difference is as follows: Unavailable revenue - general property taxes: At December 31, 2014 ($94,475) At December 31, 2015 91,306 Unavailable revenue - tax increment taxes: At December 31, 2014 (54,611) At December 31, 2015 69,656 Unavailable revenue - special assessments: At December 31, 2014 (1,789,048) At December 31, 2015 1,864,688 Net adjustments to decrease net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. $87,516 52 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 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 $711,892 difference is as follows: Debt issued or incurred: Issuance of general obligation bonds ($6,890,000) Premium on issued bonds (188,693) Principal repayments 7,870,000 Other post employment benefits (79,415) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. $711,892 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 $174,406 difference is as follows: Amortization of premiums, discounts $52,784 Accrued interest 121,622 Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities.$174,406 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; 53 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 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, 2015, 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. 54 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 g) General obligation temporary bonds of the same governmental entity issued under section 429.091, subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6. As of December 31, 2015, the City had the following investments and maturities: Fair Less Over Investment Type Rating Value Than 1 1-5 6-10 10 Years Federal Home Loan Bank AAA $495,252 $495,252 $ - $ - $ - Federal Farm Credit Bank AAA 195,030 195,030 - - - REMIC NR 30,728 - - 200 30,528 Money market NR 1,600,683 1,600,683 - - - External investment pool - 4M Fund NR 4,334,173 4,334,173 - - - Local governments AA - AAA 711,943 - 711,943 - - Brokered certificates of deposit NR 5,167,288 1,295,153 3,872,135 - - Total $12,535,097 $7,920,291 $4,584,078 $200 $30,528 NR - Not Rated Total investments $12,535,097 Petty cash 5,300 Total cash and investments $12,540,397 Investment Maturities (in Years) Following is a reconciliation of the City’s cash and investment balances as of December 31, 2015: Cash and investments $12,544,519 Cash and investments - fiduciary fund (4,122) $12,540,397 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. 55 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 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 external investment pool is with the 4M fund which is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. The 4M fund is an unrated 2a7-like pool and the fair value of the position in the pool is the same as the value of pool shares. 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. The City does not have exposure to a single issuer that equals or exceeds 5% of the overall portfolio and, therefore, there is no concentration of credit risk. Note 3 RECEIVABLES Significant receivables balances not expected to be collected within one year of December 31, 2015 are as follows: Street Improvement HRA TIF Nonmajor General Debt Service Improvements Funds Total Special assessments receivable $ - $1,633,000 $ - $24,000 $1,657,000 Delinquent property taxes 31,200 13,300 - 5,400 49,900 Delinquent Tax Increment - - 59,000 - 59,000 $31,200 $1,646,300 $59,000 $29,400 $1,765,900 Major Funds Note 4 UNAVAILABLE REVENUES Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the various components of unavailable revenue reported in the governmental funds were as follows: Property Taxes Special Assessments TIF Total Major Fund: General Fund $57,124 $ - $ - $57,124 Street Improvement Debt Service 24,387 1,837,444 - 1,861,831 HRA TIF Improvements - - 69,656 69,656 Nonmajor Funds 9,794 27,245 - 37,039 Total unavailale revenue $91,305 $1,864,689 $69,656 $2,025,650 56 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 5 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2015 was as follows: Beginning Ending Primary Government Balance Increases Decreases Transfers Balance Governmental activities: Capital assets, not being depreciated: Land $3,747,184 $ - $ - ($2,084,301) $1,662,883 Construction in progress 3,079,369 3,808,315 (1,367,229) (2,354,081) 3,166,374 Total capital assets, not being depreciated 6,826,553 3,808,315 (1,367,229) (4,438,382) 4,829,257 Capital assets, being depreciated: Buildings and improvements 9,836,936 129,860 - - 9,966,796 Land improvement 555,181 - - - 555,181 Furniture, fixtures and equipment (including software)3,899,084 228,029 (132,275) - 3,994,838 Streets 32,438,813 1,367,229 - - 33,806,042 Storm sewers 428,469 - - - 428,469 Storm water 2,253,147 - - (2,253,147) - Intangible assets 6,823 - - - 6,823 Total capital assets, being depreciated 49,418,453 1,725,118 (132,275) (2,253,147) 48,758,149 Less accumulated depreciation/amortization for: Buildings and improvements 3,749,898 294,013 - - 4,043,911 Land improvement 195,192 46,060 - - 241,252 Furniture, fixtures and equipment 2,611,909 270,865 (81,844) - 2,800,930 Streets 10,416,856 1,298,390 - - 11,715,246 Storm sewers 104,716 17,138 - - 121,854 Storm water 328,012 91,291 - (419,303) - Intangible assets - 1,365 - - 1,365 Total accumulated depreciation/amortization 17,406,583 2,019,122 (81,844) (419,303) 18,924,558 Total capital assets being depreciated - net 32,011,870 (294,004) (50,431) (1,833,844) 29,833,591 Governmental activities capital assets - net $38,838,423 $3,514,311 ($1,417,660) ($6,272,226) $34,662,848 57 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Beginning Ending Primary Government Balance Increases Decrease Transfers Balance Business-type activities: Capital assets, not being depreciated: Land $5,653 $ - $ - $2,084,301 $2,089,954 CIP 172,154 63,344 (235,498) 728,464 728,464 Total capital assets, not being depreciated 177,807 63,344 (235,498) 2,812,765 2,818,418 Capital assets, being depreciated: Buildings and structures 3,883,283 - - - 3,883,283 Furniture, fixtures and equipment 1,455,295 271,403 - - 1,726,698 Software and intangibles 26,022 - - - 26,022 Stormwater - - - 2,253,147 2,253,147 Distribution and collection system 8,636,295 - - 1,625,617 10,261,912 Total capital assets, being depreciated 14,000,895 271,403 0 3,878,764 18,151,062 Less accumulated depreciation for: Buildings and structures 1,962,458 89,345 - - 2,051,803 Furniture, fixtures and equipment 779,642 50,859 - - 830,501 Software and intangibles 21,252 4,771 - - 26,023 Stormwater - - - 419,303 419,303 Distribution and collection system 4,008,210 239,042 - - 4,247,252 Total accumulated depreciation 6,771,562 384,017 0 419,303 7,574,882 Total capital assets being depreciated - net 7,229,333 (112,614)0 3,459,461 10,576,180 Business-type activities capital assets - net $7,407,140 ($49,270) ($235,498) $6,272,226 $13,394,598 Depreciation/amortization expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $119,204 Public safety 191,398 Public works, including depreciation of general infrastructure assets 1,564,515 Parks and recreation 144,005 Total depreciation/amortization expense - governmental activities 2,019,122 Business-type activities: Liquor 75,658 Water 234,823 Sewer 73,536 Total depreciation/amortization expense - business-type activities 384,017 Total depreciation expense $2,403,139 58 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 CONSTRUCTION COMMITMENTS At December 31, 2015, the City had construction project contracts in progress. The commitments related to the remaining contract balances are summarized as follows: Contract Remaining Project Amount Commitment 2015 Street Improvements $2,319,894 $199,169 Regional Stormwater Treatment 1,381,360 888,034 $1,087,203 Note 6 LONG-TERM DEBT The City issues general obligation bonds to finance its street improvement program, tax increment projects and other City purposes. General obligation bonds are direct obligations of the City and are supported by the full faith and credit of the City. The City has several types of general obligation bonds outstanding at December 31, 2015. 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.  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 Utility Revenue Bonds. The liability for these bonds is recorded in the Proprietary Funds. 59 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 GOVERNMENTAL ACTIVITIES As of December 31, 2015, the long-term debt of the financial reporting entity consisted of the following: Final Interest Issue Maturity Original Payable Rates Date Date Issue 12/31/15 G.O. Improvement Bonds: G.O. Improvement Bonds, Series 2009A 3.00-4.00% 5/7/2009 2/1/2025 $2,630,000 $1,900,000 G.O. Improvement Refunding Bonds, Series 2009B 2.50-3.00% 12/16/2009 2/1/2018 1,335,000 470,000 G.O. Improvement Bonds, Series 2010A 2.25-3.625% 5/20/2010 2/1/2026 1,375,000 1,065,000 G.O. Improvement Bonds, Series 2011A 3.00-4.00% 4/12/2011 2/1/2027 2,955,000 2,160,000 G.O. Improvement Refunding Bonds, Series 2011B 0.40-2.00% 12/29/2011 2/1/2021 2,210,000 1,440,000 G.O. Improvement Bonds, Series 2013B 0.45-2.625% 4/23/2013 2/1/2029 1,775,000 1,660,000 G.O. Improvement Bonds, Series 2014A 2.00-3.30% 4/10/2014 2/1/2030 2,070,000 2,070,000 G.O. Improvement Bonds, Series 2015A 2.00-3.00% 5/19/2015 2/1/2031 2,580,000 2,580,000 Total improvement bonds 16,930,000 13,345,000 G.O. Street Reconstruction Bonds: G.O. Street Reconstruction Refunding Bonds, Series 2014C 2.00-3.00% 7/24/2014 2/1/2024 1,305,000 1,305,000 1,305,000 1,305,000 Tax Increment Revenue Bonds: G.O. Tax Increment Refunding Bonds, Series 2014B 2.00-3.50% 7/24/2014 2/1/2031 3,665,000 3,555,000 G.O. Tax Increment Refunding Bonds, Series 2015B 2.00-3.00% 12/29/2015 2/1/2031 4,310,000 4,310,000 Total tax increment revenue bonds 7,975,000 7,865,000 G.O. Lease Revenue Refunding Bonds: G.O. Lease Revenue Refunding Bonds, Series 2012A 2.00-2.75% 4/25/2012 2/1/2024 3,995,000 3,125,000 G.O. Tax Abatement Bonds: G.O. Tax Abatement Bonds, Series 2009A 3.00-4-00% 5/7/2009 2/1/2025 1,335,000 1,035,000 G.O. Tax Abatement Refunding Bonds, Series 2009B 2.50-3.00% 12/10/2009 2/1/2016 310,000 55,000 Total tax abatement bonds 1,645,000 1,090,000 G.O. Bonds: G.O. Refunding Bonds, Series 2012A 2.00-2.75% 4/25/2012 2/1/2028 5,500,000 4,665,000 Issuance premiums (discounts)N/A 618,259 Total - bonded indebtedness 37,350,000 32,013,259 Compensated absences payable - 668,432 Total City indebtedness - governmental activities $37,350,000 $32,681,691 60 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 BUSINESS-TYPE ACTIVITIES Final Interest Maturity Original Payable Rates Date Date Issue 12/31/15 Revenue Bonds: G.O. Water and Sewer Revenue Refunding Bonds, Series 2013A 2.00-4.45% 4/16/2003 2/1/2024 $1,440,000 $1,215,000 Issuance premiums (discounts)N/A 36,440 Total - bonded indebtedness 1,440,000 1,251,440 Compensated absences - 162,047 Total City indebtedness - business-type activities 1,440,000 1,413,487 Total City indebtedness $38,790,000 $34,095,178 Annual debt service requirements to maturity for long-term debt are as follows: Year Ending December 31 Principal Interest Principal Interest 2016 $1,160,000 $348,611 $470,000 $94,250 2017 1,330,000 310,263 485,000 84,700 2018 1,280,000 281,546 490,000 74,950 2019 1,205,000 253,090 500,000 65,050 2020 1,080,000 226,253 515,000 54,900 2021 960,000 201,483 530,000 44,450 2022 850,000 177,611 545,000 33,564 2023 875,000 152,839 320,000 24,458 2024 895,000 126,001 155,000 19,155 2025 920,000 97,625 160,000 15,333 2026 710,000 72,160 160,000 11,252 2027 610,000 51,992 165,000 6,944 2028 455,000 36,585 170,000 2,337 2029 470,000 23,638 - - 2030 350,000 11,340 - - 2031 195,000 2,925 - - Total $13,345,000 $2,373,962 $4,665,000 $531,343 G.O. Refunding BondsG.O. Improvement Bonds Governmental Activities 61 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Year Ending December 31 Principal Interest Principal Interest Principal Interest 2016 $300,000 $61,640 $415,000 $156,058 $275,000 $64,239 2017 315,000 55,490 385,000 190,038 225,000 58,227 2018 325,000 49,090 405,000 182,238 230,000 52,776 2019 335,000 42,490 420,000 173,988 235,000 47,106 2020 345,000 35,690 445,000 165,438 245,000 41,036 2021 355,000 28,690 450,000 156,487 250,000 34,546 2022 370,000 21,348 475,000 146,212 260,000 27,456 2023 385,000 13,320 495,000 134,412 270,000 19,153 2024 395,000 4,542 510,000 122,062 280,000 9,800 2025 - - 530,000 109,313 125,000 2,500 2026 - - 555,000 95,700 - - 2027 - - 580,000 80,081 - - 2028 - - 605,000 62,975 - - 2029 - - 635,000 43,787 - - 2030 - - 655,000 23,025 - - - - 305,000 4,875 - - Total $3,125,000 $312,300 $7,865,000 $1,846,689 $2,395,000 $356,839 Governmental Activities Refunding Bonds Tax IncrementLease Revenue Bonds All Other General Obligation Bonds Year Ending December 31 Principal Interest 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 $1,215,000 $114,350 Revenue Bonds Business-Type Activities It is not practicable to determine the specific year for payment of long-term accrued compensated absences. 62 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2015, was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Bonds payable: G.O. improvement debt $11,785,000 $2,580,000 ($1,020,000) $13,345,000 $1,160,000 G.O. improvement refunding bonds 5,125,000 - (460,000) 4,665,000 470,000 G.O. street reconstruction bonds 2,695,000 - (1,390,000) 1,305,000 135,000 G.O. revenue bonds 150,000 - (150,000) - - G.O. state aid street bonds 60,000 - (60,000) - - G.O. tax abatement bonds 1,225,000 - (135,000) 1,090,000 140,000 G.O. tax increment refunding bonds 7,920,000 4,310,000 (4,365,000) 7,865,000 415,000 G.O. lease revenue refunding bonds 3,415,000 - (290,000) 3,125,000 300,000 Total bonds payable - governmental activities 32,375,000 6,890,000 (7,870,000) 31,395,000 2,620,000 Issuance premiums (discounts)482,350 188,693 (52,784) 618,259 64,210 Total bonded indebtedness 32,857,350 7,078,693 (7,922,784) 32,013,259 2,684,210 Compensated absences 661,966 369,997 (363,531) 668,432 209,333 Total governmental activities long-term liabilities $33,519,316 $7,448,690 ($8,286,315) $32,681,691 $2,893,543 Business-type activities: Revenue bonds $1,330,000 $ - ($115,000) $1,215,000 $115,000 Total bonds payable - business-type activities 1,330,000 - (115,000) 1,215,000 115,000 Issuance premiums (discounts)40,948 - (4,508) 36,440 4,508 Total bonded indebtedness 1,370,948 - (119,508) 1,251,440 119,508 Compensated absences 153,726 98,644 (90,323) 162,047 50,748 Total business-type activities long-term liabilities $1,524,674 $98,644 ($209,831) $1,413,487 $170,256 For the governmental activities, compensated absences are generally liquidated by the Internal Service Employee Benefit Fund and loans payable are generally liquidated by the Street Improvement Projects Fund. All long-term bonded indebtedness outstanding at December 31, 2015 is backed by the full faith and credit of the City, including improvement and revenue bond issues. Delinquent assessments receivable at December 31, 2015 totaled $6,622. 63 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 PLEDGED REVENUE Future revenue pledged for the payment of long-term debt is as follows: Percent of Debt service Remaining Principal Pledged Use of Total as a % of Term of Principal and Interest Revenue Bond Issue Proceeds Type Debt Service Net Revenues Pledge and Interest Paid Received 2009A Tax Abatement Emerald Park improvements Tax abatement revenue 100% N/A 2009-2025 $1,242,339 $117,751 $143,565 2009B Tax Abatement Refunding Refunding of 2001A Tax Tax abatement revenue 100% N/A 2009-2016 $55,688 $57,063 $39,712 Abatement Bonds 2009A Road Improvements 2009 road reconstruction Special assessments 21%N/A 2009-2025 $2,278,181 $224,343 $18,726 2010A Road Improvements 2010 road construction Special assessments 9%N/A 2010-2026 $1,273,504 $114,293 $4,347 2011A Road Improvements 2011 road construction Special assessments 25%N/A 2011-2027 $1,998,188 $167,950 $35,370 2012A Road Improvements 2012 road construction Special assessments 25%N/A 2012-2028 $5,196,343 $563,550 $60,197 2013B Road Improvements 2013 road construction Special assessments 25%N/A 2013-2029 $1,910,601 $143,304 $43,882 2014A Road Improvements 2014 road construction Special assessments 25%N/A 2014 - 2030 $2,537,290 $70,820 $60,091 2014C Road Improvements Refunding of 2008A Tax levy 25%N/A 2014 - 2024 $1,453,813 $30,201 $57,464 Sikver Lake Road improvements 2009B Road Improvements Refunding of 2001B and 2002A Special assessments 7%N/A 2009-2018 $646,706 $189,913 $15,399 Refunding Road Improvement Bonds 2008A Street Reconstruction Silver Lake Road Tax levy 98%N/A 2008-2024 $ - $1,417,513 $ - Bonds improvements 2009A Storm Sewer Refunding of 2000A Storm Utility charges 100% N/A 2009-2015 $ - $152,250 $9,619 Refundings Revenue Sewer Revenue 2015A Road Improvements 2015 road construction Special assessments 100% N/A 2015-2031 $3,152,659 $ - $266,441 2006B TIF Redevelopment of project TIF 100% N/A 2006-2031 $ - $4,489,175 $ - area #3 and TIF 3-5 2015B TIF Refunding 2006B TIF Bonds TIF 100% N/A 2015-2031 $5,231,102 $ - $632,842 2014B TIF Refunding 2007 TIF Bonds TIF 100% N/A 2015 -2031 $4,480,588 $212,093 $542,047 2013A G.O. Water/Sewer Revenue Refunding 2003B G.O Water/ Charges for services 100% 82% 2013-2024 $1,329,350 $140,450 $1,853,980 Sewer Revenue Bonds 2011A Road Improvements Refunding 2003A Street Special assessments 22%N/A 2011-2026 $574,719 $143,438 $16,194 Refunding Improvement Bonds 2011B Road Improvements Refunding 2004A and 2005A Special assessments 25%N/A 2012-2020 $1,506,210 $282,060 $22,049 Refunding Street Improvement Bonds Revenue Pledged Current Year 64 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 ADVANCE CROSSOVER REFUNDINGS 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. ADVANCE REFUNDINGS On December 29, 2015, the City issued $4,310,000 in General Obligation Tax Increment Refunding Bonds, Series 2015B with an average interest rate of 2.57% to advance refund $4,120,000 of outstanding 2006 Series Bonds with an average interest rate of 5.60%. The net proceeds of $4,332,935 were used to purchase U.S. Government Securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for the payment of the principal and interest. The City advance refunded the 2006 Tax Increment Revenue Bonds to reduce its total debt service payments over the last sixteen years of the bond by $1,066,627 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) of $915,506. The amount of bonds defeased at December 31, 2015 was $4,120,000. Note 7 DEFINED BENEFIT PENSION A. COST SHARING MULTIPLE – EMPLOYER PLANS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Pensions. For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA except PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 65 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 PLAN DESCRIPTION The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA’s defined benefit pension plans are tax qualified plans under Section 401 (a) of the Internal Revenue Code. 1. General Employees Retirement Fund (GERF) All full-time (with the exception of employees covered by PEPFF) and certain part-time employees of the City are covered by the General Employees Retirement Fund (GERF). 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. The Basic Plan was closed to new members in 1967. All new members must participate in the Coordinated Plan. 2. Public Employees Police and Fire Fund (PEPFF) The PEPFF, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to PERA. BENEFITS PROVIDED PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio of the plan. Members in plans that are at least 90% funded for two consecutive years are given 2.5% increases. Members in plans that have not exceeded 90% funded, or have fallen below 80%, are given 1% increases. The benefit provisions stated in the following 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. 1. GERF Benefits 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. Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring member receives the higher of a step- rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2% of average salary for each of the first ten years of service and 2.7% for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2% of average salary for each of the first ten years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan members and 1.7% for Coordinated Plan members for each year of service. For members hired prior to July 1, 1989, a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired 66 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66. 2. PEPFF Benefits Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for PEPFF members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service. For PEPFF who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at least 90. CONTRIBUTIONS Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. 1. GERF Contributions Basic Plan members and Coordinated Plan members were required to contribute 9.1% and 6.50%, respectively, of their annual covered salary in calendar year 2015. The City was required to contribute 11.78% of pay for Basic Plan members and 7.50% for Coordinated Plan members in calendar year 2015. The City’s contributions to the GERF for the year ended December 31, 2015, were $161,326. The City’s contributions were equal to the required contributions as set by state statute. 2. PEPFF Contributions Plan members were required to contribute 10.8% of their annual covered salary in calendar year 2015. The City was required to contribute 16.20% of pay for PEPFF members in calendar year 2015. The City’s contributions to the PEPFF for the year ended December 31, 2015, were $435,571. The City’s contributions were equal to the required contributions as set by state statute. PENSION COSTS 1. GERF Pension Costs At December 31, 2015, the City reported a liability of $1,777,604 for its proportionate share of the GERF’s net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2014, through June 30, 2015, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2015, the City’s proportion was .0343% which was a decrease of .0038% from its proportion measured as of June 30, 2014. For the year ended December 31, 2015, the City recognized pension expense of $191,585 for its proportionate share of the GERF’s pension expense. 67 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 At December 31, 2015, the City reported its proportionate share of the GERF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $ - $89,621 Changes in actuarial assumptions - - Difference between projected and actual investment earnings 168,278 - Changes in proportion - 133,879 Contributions paid to PERA subsequent to the measurement date 84,106 - Total $252,384 $223,500 $84,106 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2016. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ended Expense December 31, Amount 2016 ($32,430) 2017 (32,430) 2018 (32,430) 2019 42,068 2020 - Thereafter - 2. PEPFF Pension Costs At December 31, 2015, the City reported a liability of $3,147,368 for its proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2014, through June 30, 2015, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2015, the City’s proportion was .2770% which was a decrease of .0030% from its proportion measured as of June 30, 2014. For the year ended December 31, 2015, the City recognized pension expense of $511,683 for its proportionate share of the PEPFF’s pension expense. The City also recognized $24,930 for the year ended December 31, 2015, as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s on-behalf contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the PEPFF each year, starting in fiscal year 2014. 68 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 At December 31, 2015, the City reported its proportionate share of the PEPFF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $ - $510,400 Changes in actuarial assumptions - - Difference between projected and actual investment earnings 548,377 - Changes in proportion - 27,001 Contributions paid to PERA subsequent to the measurement date 230,101 - Total $778,478 $537,401 $230,101 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2016. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ended Expense December 31, Amount 2016 $29,614 2017 29,614 2018 29,614 2019 29,615 2020 (107,481) Thereafter - ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2015 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.75% per year Active Member Payroll Growth 3.50% per year Investment Rate of Return 7.90% Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors and disabilitants were based on RP-2000 tables for males or females, as appropriate, with slight adjustments. Cost of living benefit increases for retirees are assumed to be 1% effective every January 1st until 2034, and 2.5% thereafter. Actuarial assumptions used in the June 30, 2015 valuation were based on the results of actuarial experience studies. The experience study in the GERF was for the period July 1, 2004, through June 69 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 30, 2008, with an update of economic assumptions in 2014. The experience study for PEPFF was for the period July 1, 2004, through June 30, 2009. There are no changes in actuarial assumptions in 2015. The long-term expected rate of return on pension plan investments is 7.9%. The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness of the long-term expected rate of return on a regular basis using a building-block method in which best- estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Target Long-Term Expected Asset Class Allocation Real Rate of Return Domestic Stocks 45% 5.50% International Stocks 15% 6.00% Bonds 18% 1.45% Alternative Assets 20% 6.40% Cash 2% 0.50% DISCOUNT RATE The discount rate used to measure the total pension liability was 7.9%. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute. Based on that assumption, each of the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. PENSION LIABILITY SENSITIVITY The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease in 1% Increase in Discount Rate (6.9%) Discount Rate (7.9%) Discount Rate (8.9%) City's proportionate share of the GERF net pension liability $2,795,025 $1,777,604 $937,370 City's proportionate share of the PEPFF net pension liability 6,134,254 3,147,368 679,680 70 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 PENSION PLAN FIDUCIARY NET POSITION Detailed information about each pension plan’s fiduciary net position is available in a separately- issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. B. SINGLE EMPLOYER PLAN SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Pensions. For purposes of measuring the net pension liability (asset), deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the St. Anthony Fire Department Relief Association (Relief) and additions to / deductions from the Relief’s fiduciary net position have been determined on the same basis as they were reported by the Relief. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. PLAN DESCRIPTION All members of the St. Anthony Fire Department are covered by a defined benefit plan administered by the Relief. The Plan is a single employer retirement plan and is established and administered in accordance with Minnesota Statute, Chapter 69. BENEFITS PROVIDED The Relief 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 within the parameters provided by State Statutes. Twenty Year Service Pension Each member who is at least 50 years of age; has retired from the City of St. Anthony, Minnesota, has served at least twenty (20) years of active service with such department before retirement; and, has been a member of the Relief in good standing at least 10 years prior to such retirement; shall be entitled to a pro-rated lump sum service pension in the amount of $3,300 for each completed full year of service but not exceeding the maximum amount per year of service allowed by law for the minimum average amount of available financing per firefighter as prescribed by law. Members with 10 years of service receive partial vesting at 60% of the 20 year rate and 4% added for every one year of service beyond ten years up to 20 years. Disability Benefits A member who becomes permanently disabled from being an active firefighter in the City of St. Anthony, Minnesota will be eligible to collect a disability benefit in an amount equal to his/her full years of active service multiplied by the yearly lump sum service pension rate. If a member receives a disability benefit and subsequently returns to active duty, the total disability benefit will be deducted from his/her service pension. 71 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Death Benefits Upon the death of any active member of the Relief who is in good standing at the time of their death, the Relief shall pay to the surviving spouse or children, if any, the sum of $3,300 for each year that the member served as an active member of the Relief. The survivor benefits include those members who are on the regular pension roll or on the deferred pension roll. State Supplemental Benefits Minnesota Statute 424A.10 provides for the payment of a supplemental benefit equal to ten percent of a regular lump sum distribution up to a maximum of $1,000. The supplemental benefit is in lieu of a State income tax exclusion for lump sum distributions and will no longer be available if State tax law is modified to exclude lump sum distributions from State income tax. The Relief qualifies for these benefits. EMPLOYEES COVERED BY BENEFIT TERMS At December 31, 2015, the following employees were covered by the benefit terms: Retired members entitled to benefits, but have not received them 5 Current members: Fully vested (20 years or more) 5 Partially vested (10 years to 19 years) 6 Nonvested (less than 10 years) 16 Total 32 CONTRIBUTIONS 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 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. The City’s contributions to the Relief for the year ended December 31, 2015, were $6,000. The City’s contributions exceeded the required contribution of $0 as set by state statute. State aid contributions for the year ended December 31, 2015, were $47,725. NET PENSION LIABILITY The City’s net pension liability (asset) was measured as of December 31, 2015, and the total pension liability used to calculate the net pension liability (asset) was determined by an actuarial valuation as of December 31, 2014 rolled forward to December 31, 2015. 72 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 ACTUARIAL ASSUMPTIONS The total pension liability in the December 31, 2015 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Investment rate of return 4.25% Projected salary increases N/A Inflation 2.75% Cost-of-living adjustments None Age of service retirement 50 Post retirement benefit increase None Mortality assumptions for pre-retirement, post-retirement and disability are as follows: Healthy pre-retirement – RP 2000 non-annuitant generational mortality projected with scale AA, white collar adjustment, male rates set back 2 years, female rates set back 2 years. Healthy post-retirement – RP 2000 annuitant generational mortality projected with scale AA, white collar adjustment, without age adjustments. Disabled – RP 2000 healthy annuitant mortality table, white collar adjustment, set forward eight years for males and females. The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimates of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These asset class estimates are combined to produce the portfolio long-term expected rate of return by weighting the expected future real rates of return by the current asset allocation percentage (or target allocation, if available) and by adding expected inflation. All results are then rounded to the nearest quarter percentage point. The best-estimate of expected future real rates of return were developed by aggregating data from several published capital market assumption surveys and deriving a single best-estimate based on the average survey values. These capital market assumptions reflect both historical market experience as well as diverse views regarding anticipated future returns. The expected inflation assumption was developed based on an analysis of historical experience blended with forward- looking expectations available in market data. 73 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Best estimates of geometric real and nominal rates of return for each major asset class included in the pension plan’s asset allocation as of the measurement date are summarized in the following table: Long-Term Expected Asset Class Real Rate of Return Domestic equity 5.25% International equity 5.25% Fixed income 1.75% Real estate and alternatives 3.75% Cash and equivalents 0.25% Total (weighted ave, rounded to 1/4%) 4.25% DISCOUNT RATES The discount rate used to measure the total pension liability was 4.25%. The liability discount rate was developed using the alternative method described in paragraph 43 of GASB 67, which states that “if the evaluations required by paragraph 41 can be made with sufficient reliability without a separate projection of cash flows into and out of the pension plan, alternative methods may be applied in making the evaluations.” The determination of the discount rate assumed that the plan’s current overfunded status, combined with Minnesota statutory funding requirements, provide sufficient reliability that projected plan assets will be adequate to pay future retiree benefits. Therefore, the plan’s long-term expected return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. CHANGES IN THE NET PENSION LIABILITY Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (Asset) (a)(b)(a) - (b) Balance at December 31, 2014 $692,393 $897,780 ($205,387) Changes for the year: Service cost 44,095 44,095 Interest 30,759 30,759 Differences between expected and actual experience - - Contributions - employer 6,000 (6,000) On behalf contributions - State of MN 48,725 (48,725) Contributions - employee - - Net investment income (23,129) 23,129 Benefit payments, including refunds of employee contributions (25,472) (25,472) Administrative expense (10,561) 10,561 Other changes - - Net changes 49,382 (4,437) 53,819 Balance at December 31, 2015 $741,775 $893,343 ($151,568) Increase (Decrease) 74 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 PENSION LIABILITY (ASSET) SENSITIVITY The following presents the net pension liability (asset) of the City, calculated using the discount rate of 4.25 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.25 percent) or 1-percentage-point higher (5.25 percent) than the current rate: Current 1% Decrease Discount Rate 1% Increase (3.25%) (4.25%) (5.25%) Net pension liability (asset) ($128,868) ($151,568) ($173,539) PENSION PLAN FIDUCIARY NET POSITION Detailed information about the pension plan’s fiduciary net position is available in the separately issued Relief Association financial report. That report may be obtained by writing to St. Anthony Fire Department Relief Association, 3505 Silver Lake Road, St. Anthony, Minnesota, 55418. PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RLEATED TO PENSIONS For the year ended December 31, 2015, the City recognized pension expense of $10,473. The City also recognized $48,725 for the year ended December 31, 2015, as pension expense (and grant revenue) for the State of Minnesota’s on-behalf contribution to the plan. At December 31, 2015, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $ - $ - Changes in actuarial assumptions - - Difference between projected and actual investment earnings 49,346 - Total $49,346 $ - 75 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ended Expense December 31, Amount 2016 $12,336 2017 12,336 2018 12,336 2019 12,338 2020 - Thereafter - C. PENSION EXPENSE Pension expense recognized by the City for the fiscal year ended December 31, 2015 is as follows: GERF $191,585 PEPFF 536,613 Fire Relief 59,198 Total $787,396 NOTE 8 DEFINED CONTRIBUTION PLAN All city council members of the City of St. Anthony are covered by the Public Employees Defined Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by 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. 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. An eligible elected official who decides to participate contributes 5% of salary which is matched by the elected official's employer. For ambulance service personnel, employer contributions are determined by the employer, and for salaried employees must be a fixed percentage of salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. 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% of employer contributions and twenty-five hundredths of 1% (.0025) of the assets in each member's account annually. 76 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Total contributions made by the City during fiscal year 2015 were: Required Employer Employee (Pension Expense) Employee Employer Rate $1,708 $1,708 5% 5% 5% Contribution Amount Percentage of Covered Payroll Note 9 OTHER POST-EMPLOYMENT BENEFITS (OPEB) 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. 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. 77 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Disabled police and firefighters 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, 2015 through December 31, 2015 monthly premiums paid for Police or Firefighters disabled in the line of duty are: Employee Employee Plus Spouse Aware Plan: $30 Copay $839 $1,760 $30 Copay 90/10% coinsurance 799 1,676 $500 Deductible - $25 copay 741 1,556 $2500 HDHP/HSA 553 1,161 $4000 HDHP/HSA 506 1,061 Accord Plan: $30 Copay 807 1,693 $30 Copay 90/10% coinsurance 768 1,610 $500 Deductible - $25 copay 713 1,495 $2500 HDHP/HSA 533 1,116 $4000 HDHP/HSA 486 1,021 C. PARTICIPANTS As of the actuarial valuation dated January 1, 2014, participants consisted of: Retirees and beneficiaries currently purchasing health insurance through the City 3 Disabled police and firefighters 1 Active employees 61 Total 65 Participating employers 1 D. FUNDING POLICY The additional cost of using a blended rate for actives and retirees is currently funded on a pay-as-you- go basis. The City Council may change the funding policy at any time. 78 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 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, 2015, was calculated as follows: Annual required contribution (ARC)$107,192 Interest on net OPEB obligation 22,937 Adjustment to ARC (19,243) Annual OPEB cost 110,886 Contributions made during the year (19,485) Increase (decrease) in net OPEB obligation 91,401 Net OPEB obligation - beginning of year 509,707 Net OPEB obligation - end of year $601,108 For the governmental activities, the net OPEB obligation is generally liquidated by the General Fund. The City had an actuarial valuation performed for the plan as of January 1, 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, 2015. The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for 2013, 2014, and 2015 was as follows: Percentage of Fiscal Year Annual OPEB Employer Annual OPEB Cost Net OPEB Ended Cost Contributions Contributed Obligation December 31, 2013 $102,892 $17,962 17% $416,570 December 31, 2014 106,523 13,386 13% 509,707 December 31, 2015 110,886 19,485 18% 601,108 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: Actuarial Unfunded 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)(a/b)(c) ( (b-a) / c) January 1, 2014 $ - $869,401 $869,401 0.00% $3,834,128 22.68% *Using the Projected Unit Credit Actuarial cost method. 79 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 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 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 10 INTERFUND RECEIVABLES/PAYABLES, LOANS AND TRANSFERS Individual fund interfund receivable and payable balances at December 31, 2015 are as follows: Fund Receivable Payable Governmental activities: General Fund $563,938 $ - Street Improvement Project - 414,064 Business-type activities Stormwater Utility - 149,874 Total $563,938 $563,938 80 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Interfund payables and receivables are representative of lending/borrowing arrangements to cover deficit cash balances at the end of the fiscal year. Fund Receivable Payable Purpose Major funds: Water/Sewer/Water Plant $1,009,906 $ - HRA TIF Improvements - 959,326 Provide financing for pay off of Fannie Mae loan Nonmajor funds: Revolving Improvement Fund - 50,580 Provide financing for Arbors Alley Project - Total $1,009,906 $1,009,906 Interfund transfers: Business-type Major Fund Street Street Nonmajor Internal General Improvement HRA TIF Improvement Governmental Service Stormwater Fund Debt Service Debt Service Project Fund Fund Utility Total Governmental activities: General Fund $ - $ - $ - $ - $282,243 $86,300 $ - $368,543 HRA TIF Improvements - - 587,200 - - - - 587,200 Street Improvemet Project - 191,319 - - - - - 191,319 Nonmajor 77,211 37,663 - 100,000 359,010 - 179,701 753,585 Business-type activities: Liquor 67,849 - - - 181,200 - - 249,049 Water/Sewer/Water Plant 50,000 - - - 135,564 - - 185,564 Total transfers $195,060 $228,982 $587,200 $100,000 $958,017 $86,300 $179,701 $2,335,260 Transfer In Transfer out Governmental Activities Major Funds All of the 2015 transfers are considered routine and consistent with previous practices. Note 11 DEFICIT FUND BALANCES/NET POSITION The City has deficit fund balances/net position at December 31, 2015 as follows: Fund Amount Major funds: Street Improvement Fund $272,435 Nonmajor funds: Internal Service Fund 5,240,561 These deficits will be eliminated in certain situations by bond proceeds. The Internal Service Fund includes the state retirement plans and the retirement of pension deficits are dependent upon variables, including contribution rates, investment earnings, and actuarial assumptions. 81 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 12 CONTINGENCIES A. RISK MANAGEMENT The City is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Workers compensation coverage is provided through a pooled self-insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. The City has no deductible and a managed care program to assist employees with their rehabilitation plan. Annual employee hours of service are audited and final premiums are then determined. The amount of premium adjustment, if any, is considered immaterial and not recorded until received or paid. Property, casualty and automobile insurance coverage are provided through a pooled self-insurance program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various amounts. The City retains risk for the deductible portions. These deductibles are considered immaterial to the financial statements. The City continues to carry commercial insurance for all other risks of loss, including liquor liability, employee health and disability insurance. There were no significant reductions in insurance from the previous year or 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, 2015. 82 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 D. TAX INCREMENT DISTRICTS The City’s tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which would have a material effect on the financial statements. E. PAY-AS-YOU-GO TAX INCREMENT The City has two tax increment pay-as-you-go agreements. The agreements are not a general obligation of the City and are payable solely from available tax increment. Accordingly, these agreements are not reflected in the financial statements of the City. Details of the pay-as-you-go notes are as follows: TIF District #3-5, Landings at Silver Lake Village: The pay-as-you-go note provides for the payment to the developer for 90% of all tax increment received in the prior six months. The payment reimburses the developer for street, utilities, right-of- way, land acquisition, and other public improvements. Principal and interest payments will be completed February 1, 2031. TIF District #3-5, Phase II Town Homes: The pay-as-you-go note provides for the payment to the developer for 95% of all tax increment received in the prior six months. The payment reimburses the developer for streets, utilities, right- of-way, land acquisition, and other public improvements. Principal and interest payments will be completed February 1, 2031. F. ARBITRAGE The City issued greater than $5 million of bonds in the years 2006, 2007 and 2011 and, therefore; is required to rebate excess investment income relating to these issues to the federal government. The City calculates arbitrage rebate every five years as permitted by arbitrage regulations. The extent of the City’s liability for arbitrage rebates for bond issues not currently requiring five year rebate calculations is not determinable at this time. However, in the opinion of management, any such liability would be immaterial. Note 13 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. 83 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 2015. Note 14 FUND BALANCE A. CLASSIFICATIONS At December 31, 2015, a summary of the governmental fund balance (deficit) classifications are as follows: Street Improvement Street Debt HRA TIF Improvement HRA TIF General Fund Service Debt Service Projects Projects Other Funds Total Nonspendable: Prepaid items $104,540 $ - $ - $ - $ - $2,157 $106,697 Inventory 2,872 - - - - - 2,872 Total nonspendable 107,412 0 0 0 0 2,157 109,569 Restricted for: Tax increment - - - - 1,885,568 - 1,885,568 Public safety - - - - - 19,283 19,283 Redevelopment activities - - - - - 12,411 12,411 Debt service - 3,689,111 15,321 - - 870,095 4,574,527 Total restricted 0 3,689,111 15,321 0 1,885,568 901,789 6,491,789 Committed to: Community center operations/maintenance - - - - - 10,515 10,515 Recycling - - - - - 11,651 11,651 Revolving loan program - - - - - 71,941 71,941 Total committed 0 0 0 0 0 94,107 94,107 Assigned to: Community center operations/maintenance - - - - - 14,333 14,333 Street improvements/rehabilitiation - - - - - - - Building improvements - - - - - 1,689 1,689 Public safety - - - - - 11,015 11,015 Parks and recreation - - - - - 172,768 172,768 Other capital improvements - - - - - 378,453 378,453 Total assigned 0 0 0 0 0 578,258 578,258 Unassigned 2,338,600 - - (272,435) (1,713,462) (76,266) 276,437 Total $2,446,012 $3,689,111 $15,321 ($272,435) $172,106 $1,500,045 $7,550,160 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, 2015, the unassigned fund balance of the General Fund was 42% of the subsequent year’s budgeted expenditures. 84 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 15 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, 2015, 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, 2015 is unavailable. Note 16 OPERATING LEASES The City leases space above its water towers. The space is used for antennas and other equipment necessary to provide radio communications. Lease terms are as follows: 2015 Annual Lease Initial Lease Adjustment Expiration Automatic Lessee Amount Factor Date Renewals Sprint Spectrum $25,694 4% 2/27/18 4-5 year terms Clearwire Communications 28,591 4% 7/17/19 4-5 year terms Verizon Wireless 25,029 3% 8/1/18 4-5 year terms 85 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Future minimum lease payments are as follows: Sprint Clearwire Verizon Spectrum Communications Wireless 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 $451,766 $1,127,816 $766,906 86 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 17 LEGAL DEBT MARGIN The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally from property taxes. The City’s legal debt margin for 2015 and 2014 is computed as follows: December 31, December 31, 2015 2014 Market value: Ramsey County $255,155,300 $244,282,700 Hennepin County 461,515,606 429,940,030 Total market value 716,670,906 674,222,730 Debt limit percentage 3.00% 3.00% Debt limit 21,500,127 20,226,682 Amount of debt applicable to debt limit: Total bonded debt 32,610,000 33,705,000 Less nonapplicable debt: Revenue bonds (water, sewer, storm sewer) (1,215,000) (1,480,000) State aid street bonds - (60,000) Tax abatement bonds (1,090,000) (1,225,000) Improvement bonds (18,010,000) (16,910,000) Tax increment bonds (7,865,000) (7,920,000) Cash and investments in applicable debt service funds (819,672) (2,078,937) Total amount of debt applicable to debt limit 3,610,328 4,031,063 Legal debt margin $17,889,799 $16,195,619 Note 18 RECENTLY ISSUED ACCOUNTING STANDARDS The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were not implemented for these financial statements: Statement No. 72 Fair Value Measurement and Application. The provisions of this Statement are effective for financial statements for periods beginning after June 15, 2015. Statement No. 73 Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. The provisions in Statement 73 are effective for fiscal years beginning after June 15, 2015 – except those provisions that address employers and governmental nonemployer contributing entities for pensions that are not within the scope of Statement 68, which are effective for fiscal years beginning after June 15, 2016. Statement No. 74 Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. The provisions in Statement 74 are effective for fiscal years beginning after June 15, 2016. 87 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The provisions in Statement 75 are effective for fiscal years beginning after June 15, 2017. Statement No. 76 The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. The provisions in Statement 76 are effective for reporting periods beginning after June 15, 2015. Statement No. 77 Tax Abatement Disclosures. The provisions of this Statement are effective for reporting periods beginning after December 31, 2015. Statement No. 78 Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans. The provisions of this Statement are effective for reporting periods beginning after December 15, 2015. Statement No. 79 Certain External Investment Pools and Pool Participants. The provisions of this Statement are effective for reporting periods beginning after June 15, 2015, except for certain provisions on portfolio quality, custodial credit risk, and shadow pricing which are effective for reporting periods beginning after December 15, 2015. Statement No. 80 Blending Requirements for Certain Component Units. The provisions of this Statement are effective for reporting periods beginning after June 15, 2016. Statement No. 81 Irrevocable Split-Interest Agreements. The provisions of this Statement are effective for reporting periods beginning after December 15, 2016. The effect these standards may have on future financial statements is not determinable at this time, but it is expected that Statement No. 75 will have a material impact. Note 19 CHANGE IN ACCOUNTING PRINCIPLE For the year ended December 31, 2015, the City implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions – an Amendment of GASB Statement No. 27. GASB 68 addresses accounting and financial reporting for pension plans that are provided to employees of state and local governments. The standard requires the City to record its share of the net pension liability of defined benefit plans, as well as any corresponding deferred inflows and outflows of resources. See Note 7 for further information. 88 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 The standard required retroactive implementation which resulted in a restatement of net position as of December 31, 2014. Certain amounts necessary to fully restate 2014 financial information are not determinable, therefore, prior year comparative amounts have not been restated. Details of the prior period adjustment are as follows: Pension Benefits Governmental Internal Activities Service Fund Net position - January 1, 2015, as previously reported $15,524,257 $ - Prior period adjustment: Deferred outflows of resources - pension related 265,222 265,222 Net pension liability (4,813,862) (4,813,862) Net pension asset 205,387 - Net position - January 1, 2015, as restated $11,181,004 ($4,548,640) Note 20 SUBSEQUENT EVENTS The City issued the $1,455,000 G.O. Improvement Bonds, Series 2016A and the $1,445,000 G.O. Tax Abatement Bonds, Series 2016B on May 10, 2016 to fund various public improvements within the city. 89 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 21 RECLASSIFICATION During the year ended 2015, the City reclassified funds in order to better identify City activities. The reclassification resulted in the combination of previously reported funds into new fund groups that better represent the City’s goals and mission. The changes to beginning fund balance due to combining the funds during 2015 are as follows: Major Funds Street Street Public HRA Previously Improvement HRA TIF HRA TIF Improvement Facilities Directed Prior Presentation Reported Debt Service Debt Service Improvements Project Revenue Bonds Projects Major Funds: Street Improvement Debt Service $1,620,435 $1,620,435 $ - $ - $ - $ - $ - Silver Lake Road Bond 1,470,614 1,470,614 - - - - - HRA Debt Service 623,126 - 10,388 - - 612,738 - HRA Projects 122,747 - - 122,747 - - - 2014 Street Improvement Project 30,553 - - - 30,553 - - 2015 Street Improvement Project (130,223) - - - (130,223) - - 2016 Street Improvement Project (68,773) - - - (68,773) - - Nonmajor Governmental Funds: 2009 Street Improvements Debt Service 384,309 384,309 - - - - - 2010 Street Improvements Debt Service 158,166 158,166 - - - - - 2011 Street Improvements Debt Service 411,736 411,736 - - - - - 2012 Street Improvements Debt Service 333,754 333,754 - - - - - 2013 Street Improvements Debt Service 228,102 228,102 - - - - - 2014 Street Improvements Debt Service 44,046 44,046 - - - - - HRA Directed Projects Capital Projects - - - 49,841 - - (49,841) 2013 Street Improvement Capital Project 189,115 - - - 189,115 - - New net position - beginning $4,651,162 $10,388 $172,588 $20,672 $612,738 ($49,841) Current Presentation Nonmajor Governmental Funds 90 REQUIRED SUPPLEMENTARY INFORMATION 91 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 5 For The Year Ended December 31, 2015 With Comparative Totals For The Year Ended December 31, 2014 2015 2014 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues: General property taxes $3,493,654 $3,478,654 $3,437,635 ($41,019) $3,551,089 Licenses and permits 207,305 207,305 296,465 89,160 351,102 Intergovernmental: Federal: Police grants 50,950 50,950 46,457 (4,493) 48,836 State: Local governement aid 505,415 505,415 505,415 - 442,967 Police aid 191,030 191,030 189,440 (1,590) 181,935 Fire aid 45,672 45,672 47,725 2,053 45,251 Municipal state aid - street maintenance 76,749 76,749 83,997 7,248 76,749 PERA aid 7,197 7,197 7,197 - 7,197 Other - - - - 4,000 County: Street maintenance 21,325 21,325 25,440 4,115 19,723 Other 8,800 8,800 11,588 2,788 57,674 Local: School District DARE 14,500 14,500 14,500 - 15,281 Other 500 500 445 (55) - Total intergovernmental 922,138 922,138 932,204 10,066 899,613 Charges for services: Police contracts 1,268,772 1,268,772 1,268,772 - 1,234,162 Cable franchise fees 105,000 105,000 108,104 3,104 109,009 Antenna rental - water tower 79,375 79,375 79,322 (53) 74,505 Other 201,160 234,947 206,912 (28,035) 162,985 Total charges for services 1,654,307 1,688,094 1,663,110 (24,984) 1,580,661 Fines and forfeits 114,750 114,750 125,102 10,352 119,035 Contributions and donations 1,500 1,500 3,403 1,903 11,800 Other revenue: Investment income 7,500 7,500 22,960 15,460 29,840 Refunds and reimbursments 8,750 8,750 31,411 22,661 9,130 Miscellaneous - other 30,950 30,950 44,811 13,861 73,420 Total other revenue 47,200 47,200 99,182 51,982 112,390 Total revenues 6,440,854 6,459,641 6,557,101 97,460 6,625,690 Expenditures: General government: Mayor and council: Current: Personal services 40,597 40,597 36,562 4,035 37,938 Other services and charges 45,561 39,936 38,261 1,675 42,857 Total mayor and council 86,158 80,533 74,823 5,710 80,795 Budgeted Amounts 92 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 5 For The Year Ended December 31, 2015 With Comparative Totals For The Year Ended December 31, 2014 2015 2014 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) General government: (continued) Public relations/cable: Current: Personal services $8,413 $8,413 $7,846 $567 $6,312 Supplies 850 850 - 850 673 Other services and charges 29,146 29,146 29,283 (137) 28,804 Capital outlay 2,500 2,500 - 2,500 - Total public relations/cable 40,909 40,909 37,129 3,780 35,789 General management: Current: Personal services 83,541 83,541 84,023 (482) 80,390 Supplies 1,025 1,025 218 807 526 Other services and charges 45,975 32,925 26,412 6,513 43,521 Total general management 130,541 117,491 110,653 6,838 124,437 Elections: Current: Personal services 23,384 13,142 19,713 (6,571) 24,543 Supplies 2,100 2,100 505 1,595 2,256 Other services and charges 4,430 4,430 2,969 1,461 2,944 Total elections 29,914 19,672 23,187 (3,515) 29,743 Finance: Current: Personal services 128,565 191,693 186,904 4,789 125,379 Supplies 8,700 8,700 7,964 736 8,867 Other services and charges 135,180 135,180 125,473 9,707 125,922 Total finance 272,445 335,573 320,341 15,232 260,168 Assessing: Current: Personal services 3,540 3,540 3,532 8 3,423 Supplies 150 150 166 (16) 166 Other services and charges 49,150 49,150 49,000 150 46,501 Total assessing 52,840 52,840 52,698 142 50,090 Legal: Current: Contracted services 110,750 110,750 135,029 (24,279) 162,670 Planning and zoning: Current: Personal services 1,100 11,635 10,155 1,480 1,199 Supplies 125 125 344 (219) 696 Other services and charges 53,400 53,400 51,787 1,613 57,425 Total planning and zoning 54,625 65,160 62,286 2,874 59,320 Budgeted Amounts 93 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 5 For The Year Ended December 31, 2015 With Comparative Totals For The Year Ended December 31, 2014 2015 2014 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) General government: (continued) General government buildings: Current: Other services and charges $65,703 $65,703 $58,283 $7,420 $68,357 Total general government buildings 65,703 65,703 58,283 7,420 68,357 Total general government 843,885 888,631 874,429 14,202 871,369 Public safety: Civil defense: Current: Personal services 60,917 60,917 62,842 (1,925) 58,519 Supplies 460 460 951 (491) 125 Other services and charges 3,850 3,850 2,434 1,416 2,297 Total civil defense 65,227 65,227 66,227 (1,000) 60,941 Police protection: Current: Personal services 2,944,872 2,944,872 2,878,831 66,041 2,809,761 Supplies 127,614 127,614 105,476 22,138 118,973 Other services and charges 180,579 180,579 171,143 9,436 156,191 Total police protection 3,253,065 3,253,065 3,155,450 97,615 3,084,925 Fire protection: Current: Personal services 876,729 876,729 890,772 (14,043) 864,977 Supplies 46,000 46,000 30,543 15,457 30,193 Other services and charges 59,279 59,279 58,586 693 110,971 Total fire protection 982,008 982,008 979,901 2,107 1,006,141 Protective inspections: Current: Personal services 11,893 12,243 11,657 586 11,414 Supplies 175 175 336 (161) 278 Other services and charges 68,725 68,725 111,261 (42,536) 150,544 Total protective inspections 80,793 81,143 123,254 (42,111) 162,236 DARE program: Current: Personal services 12,055 12,055 10,425 1,630 11,123 Supplies 2,700 2,700 3,014 (314) 2,782 Total DARE program 14,755 14,755 13,439 1,316 13,905 Budgeted Amounts 94 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 5 For The Year Ended December 31, 2015 With Comparative Totals For The Year Ended December 31, 2014 2015 2014 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) Public safety: (continued) Animal control: Current: Supplies $75 $75 $ - $75 $59 Contracted services 1,800 500 206 294 26 Total animal control 1,875 575 206 369 85 Total public safety 4,397,723 4,396,773 4,338,477 58,296 4,328,233 Public works: Street maintenance: Current: Personal services 396,361 399,011 379,404 19,607 371,650 Supplies 19,300 16,300 14,727 1,573 11,644 Other services and charges 105,791 105,791 110,382 (4,591) 113,331 Total street maintenance 521,452 521,102 504,513 16,589 496,625 Equipment maintenance: Current: Personal services 85,035 85,035 82,594 2,441 77,652 Supplies 271,422 271,422 234,273 37,149 243,005 Other services and charges 48,400 43,150 37,935 5,215 47,369 Total equipment maintenance 404,857 399,607 354,802 44,805 368,026 Tree and weed care: Current: Personal services 38,502 38,502 37,930 572 35,542 Supplies 9,790 - - - - Other services and charges 4,630 4,630 3,594 1,036 4,500 Total tree and weed care 52,922 43,132 41,524 1,608 40,042 Total public works 979,231 963,841 900,839 63,002 904,693 Parks and recreation: Park maintenance: Current: Personal services 166,031 163,031 160,315 2,716 156,217 Supplies 7,500 10,500 16,188 (5,688) 7,630 Other services and charges 37,425 37,425 30,524 6,901 32,455 Total park maintenance 210,956 210,956 207,027 3,929 196,302 Recreation: Current: Community services 52,176 52,176 52,176 - 52,176 Total parks and recreation 263,132 263,132 259,203 3,929 248,478 Budgeted Amounts 95 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 5 For The Year Ended December 31, 2015 With Comparative Totals For The Year Ended December 31, 2014 2015 2014 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) Nondepartmental: Personal services 35,500 35,500 34,133 1,367 36,473 Supplies 500 500 - 500 98 Insurance deductible costs 8,173 8,173 6,006 2,167 22,694 Total nondepartmental 44,173 44,173 40,139 4,034 59,265 Total expenditures 6,528,144 6,556,550 6,413,087 143,463 6,412,038 Revenues over (under) expenditures (87,290) (96,909) 144,014 240,923 213,652 Other financing sources (uses): Transfers in 264,244 264,244 195,060 (69,184) 264,244 Transfers out (164,950) (164,950) (368,543) (203,593) (150,954) Total other financing sources (uses) 99,294 99,294 (173,483) (272,777) 113,290 Net change in fund balance $12,004 $2,385 (29,469) ($31,854) 326,942 Fund balance - January 1 2,475,481 2,148,539 Fund balance - December 31 $2,446,012 $2,475,481 Budgeted Amounts 96 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 SCHEDULE OF FUNDING PROGRESS OTHER POST EMPLOYMENT BENEFITS PLAN For The Year Ended December 31, 2015 (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% 97 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 12 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY* - GENERAL EMPLOYEES RETIREMENT FUND For The Year Ended December 31, 2015 Proportionate Share Proportionate of the Net Pension Plan Fiduciary Proportion Share (Amount) Liability as a Net Position as (Percentage) of of the Net Covered- Percentage of its a Percentage Measurement Fiscal Year the Net Pension Pension Employee Covered-Employee of the Total Date Ending Liability Liability (a) Payroll (b) Payroll (a/b) Pension Liability June 30, 2015 December 31, 2015 0.0343% $1,777,604 $2,012,851 88.3% 78.2% * The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. 98 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 13 SCHEDULE OF PENSION CONTRIBUTIONS* - GENERAL EMPLOYEES RETIREMENT FUND For The Year Ended December 31, 2015 Statutorily Contributions in Contribution Covered- Contributions as a Required Relation to the Deficiency Employee Percentage of Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered-Employee Ending (a) Contribution (b) (a-b) (c) Payroll (b/c) December 31, 2015 $161,326 $161,326 $0 $2,151,016 7.5% * The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. 99 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 14 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY* - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Year Ended December 31, 2015 Proportionate Share Proportionate of the Net Pension Plan Fiduciary Proportion Share (Amount) Liability as a Net Position as (Percentage) of of the Net Covered- Percentage of its a Percentage Measurement Fiscal Year the Net Pension Pension Employee Covered-Employee of the Total Date Ending Liability Liability (a) Payroll (b) Payroll (a/b) Pension Liability June 30, 2015 December 31, 2015 0.2770% $3,147,368 $2,535,887 124.1% 86.6% * The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. 100 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 15 SCHEDULE OF PENSION CONTRIBUTIONS* - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Year Ended December 31, 2015 Statutorily Contributions in Contribution Covered- Contributions as a Required Relation to the Deficiency Employee Percentage of Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered-Employee Ending (a) Contribution (b) (a-b) (c) Payroll (b/c) December 31, 2015 $435,571 $435,571 $0 $2,688,709 16.2% * The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. 101 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 16 SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY* AND RELATED RATIOS - ST. ANTHONY FIRE DEPARTMENT RELIEF ASSOCIATION For The Year Ended December 31, 2015 Fiscal year ending December 31, 2015 Measurement date December 31, 2015 Total pension liability: Service cost $44,095 Interest 30,759 Changes of benefit terms - Differences between expected and actual experience - Changes of assumptions - Benefit payments, including refunds of employee contributions (25,472) Net change in total pension liability 49,382 Total pension liability - beginning 692,393 Total pension liability - ending (a)$741,775 Plan fiduciary net position: Contributions - employer $6,000 Contributions - State of Minnesota 48,725 Contributions - employee - Net investment income (23,129) Benefit payments, including refunds of employee contributions (25,472) Administrative expense (10,561) Other - Net change in plan fiduciary net position (4,437) Plan fiduciary net position - beginning 897,780 Plan fiduciary net position - ending (b) $893,343 Net pension liability (asset) - ending (a) - (b) ($151,568) Plan fiduciary net position as a percentage of the total pension liability 120.43% Covered-employee payroll**$ - Net pension liability as a percentage of covered employee payroll** NA Pension benefit per year of service $3,300 Number of plan participants 32 *GASB 68 was implemented in 2015. Information prior to 2015 is not available. **The Relief Association is comprised of volunteers, therefore there are no payroll expenditures. 102 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 17 SCHEDULE OF CONTRIBUTIONS* - ST. ANTHONY FIRE DEPARTMENT RELIEF ASSOCIATION For The Year Ended December 31, 2015 Statutorily Contributions in Contribution Covered- Contributions as a Required Relation to the Deficiency Employee Percentage of Fiscal Year Contribution Statutorily Required (Excess) Payroll** Covered-Employee Ending (a) Contribution (b) (a-b) (c) Payroll** (b/c) December 31, 2015 $22,977 $53,725 ($30,748) $ - NA *GASB 68 was implemented in 2015. Information prior to 2015 is not available. **The Relief Association is comprised of volunteers, therefore, there are no payroll expenditures. (i.e., there are no covered payroll amounts or percentage calculations.) 103 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2015 Note A LEGAL COMPLIANCE – 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. Note B PENSION INFORMATION PERA – General Employees Retirement Fund There are no factors that affect trends in the amounts reported, such as change of benefit terms or assumptions. With only one year reported in the RSI, there is no additional information to include in the notes. Details can be obtained from the financial reports of PERA. PERA – Public Employees Police and Fire Fund There are no factors that affect trends in the amounts reported, such as change of benefit terms or assumptions. With only one year reported in the RSI, there is no additional information to include in the notes. Details can be obtained from the financial reports of PERA. Single Employer – Fire Relief Association There are no factors that affect trends in the amounts reported, such as change of benefit terms or assumptions. With only one year reported in the RSI, there is no additional information to include in the notes. Details can be obtained from the financial reports of the Fire Relief Association. 104 COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL STATEMENTS AND SCHEDULES 105 - This page intentionally left blank - 106 NONMAJOR GOVERNMENTAL FUNDS 107 - This page intentionally left blank - 108 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). 109 CITY OF ST. ANTHONY, MINNESOTA COMBINING BALANCE SHEET Statement 18 NONMAJOR GOVERNMENTAL FUNDS December 31, 2015 Totals Special Debt Capital Nonmajor Governmental Funds Revenue Service Project 2015 Assets Cash and investments $17,687 $872,735 $595,727 $1,486,149 Due from other governmental units - - 9,841 9,841 Accounts receivable - net - - 17,367 17,367 Prepaid items 2,157 - - 2,157 Property taxes receivable: Delinquent 1,584 7,564 646 9,794 Special assessments receivable - - 27,245 27,245 Funds held by others 71,941 - - 71,941 Total assets $93,369 $880,299 $650,826 $1,624,494 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $12,724 $76 $19,243 $32,043 Interfund loan payable - - 50,580 50,580 Due to other governmental units 673 2,564 202 3,439 Salaries payable 1,348 - - 1,348 Total liabilities 14,745 2,640 70,025 87,410 Deferred inflows of resources: Unavailable revenue 1,584 7,564 27,891 37,039 Total deferred inflows of resources 1,584 7,564 27,891 37,039 Fund balance (deficit): Nonspendable 2,157 - - 2,157 Restricted 31,694 870,095 - 901,789 Committed 94,107 - - 94,107 Assigned 25,348 - 552,910 578,258 Unassigned (76,266) - - (76,266) Total fund balance (deficit) 77,040 870,095 552,910 1,500,045 Total liabilities, deferred inflows of resources, and fund balance $93,369 $880,299 $650,826 $1,624,494 110 CITY OF ST. ANTHONY, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 19 CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS For The Year Ended December 31, 2015 Totals Special Debt Capital Nonmajor Governmental Funds Revenue Service Project 2015 Revenues: General property taxes $130,313 $524,965 $48,996 $704,274 Intergovernmental 21,327 33,277 626,550 681,154 Special assessments - - 8,126 8,126 Charges for services 132,127 9,619 182,768 324,514 Fines and forfeits 5,721 - - 5,721 Investment income 960 6,280 13,273 20,513 Contributions and donations - - 12,500 12,500 Refunds and reimbursements 2,372 - 23,460 25,832 Other - - 852 852 Total revenues 292,820 574,141 916,525 1,783,486 Expenditures: Current: General government 18,793 - 39,308 58,101 Public safety 13,571 - - 13,571 Public works - - 142,712 142,712 Parks and recreation 169,134 - 18,587 187,721 Housing and development 117,902 - - 117,902 Capital outlay: General government - - 168,176 168,176 Public safety - - 150,645 150,645 Public works - - 67,831 67,831 Debt service: Principal - 635,000 - 635,000 Interest - 110,504 2,955 113,459 Paying agent fees - 812 - 812 Professional service - 1,219 - 1,219 Construction/acquistion costs - - 620,137 620,137 Total expenditures 319,400 747,535 1,210,351 2,277,286 Revenues over (under) expenditures (26,580) (173,394) (293,826) (493,800) Other financing sources: Sale of capital assets - - 25,860 25,860 Transfers in 232,830 - 725,187 958,017 Transfers out (25,000) (5,163) (723,422) (753,585) Total other financing sources 207,830 (5,163) 27,625 230,292 Net change in fund balance 181,250 (178,557) (266,201) (263,508) Fund balance (deficit) - January 1 (104,210) 1,048,652 819,111 1,763,553 Fund balance (deficit) - December 31 $77,040 $870,095 $552,910 $1,500,045 111 - This page intentionally left blank - 112 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 (601) is used to account for the operation and maintenance of City Hall and Community Services. Police Forfeiture Fund (230) is used to account for revenue and expenditures related to the forfeiture of property. Recycling Fund (225) is used to account for the City’s recycling program. It incorporates the activities of both Hennepin and Ramsey Counties. HRA Fund (301) was established to oversee the commercial and residential redevelopment activities in the community. Fire Education / Training Fund (240) was established to account for revenues and expenditures related to training provided to police and fire personnel. 113 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 20 NONMAJOR SPECIAL REVENUE FUNDS December 31, 2015 Community Center Fund Police Forfeiture Fund Recycling Fund HRA Fund Fire Education / Training Fund Totals Nonmajor Special Revenue 2015 Assets Cash and investments $37,722 $26,147 $11,651 ($61,984) $4,151 $17,687 Prepaid items 914 - 141 1,102 - 2,157 Property taxes receivable: Delinquent - - - 1,584 - 1,584 Funds held by others - - - 71,941 - 71,941 Total assets $38,636 $26,147 $11,792 $12,643 $4,151 $93,369 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $12,687 $ - $ - $37 $ - $12,724 Due to other governmental units 12 - - 661 - 673 Salaries payable 175 - - 1,173 - 1,348 Total liabilities 12,874 0 0 1,871 0 14,745 Deferred inflows of resources: Unavailable revenue - - - 1,584 - 1,584 Total deferred inflows of resources 0 0 0 1,584 0 1,584 Fund balance (deficit): Nonspendable 914 - 141 1,102 - 2,157 Restricted - 18,084 - 12,411 1,199 31,694 Committed 10,515 - 11,651 71,941 - 94,107 Assigned 14,333 8,063 - - 2,952 25,348 Unassigned - - - (76,266) - (76,266) Total fund balance (deficit) 25,762 26,147 11,792 9,188 4,151 77,040 Total liabilities, deferred inflows of resources, and fund balance $38,636 $26,147 $11,792 $12,643 $4,151 $93,369 114 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES,Statement 21 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR SPECIAL REVENUE FUNDS For The Year Ended December 31, 2015 Community Center Fund Police Forfeiture Fund Recycling Fund HRA Fund Fire Education / Training Fund Nonmajor Special Revenue Funds 2015 Revenues: General property taxes $ - $ - $ - $130,313 $ - $130,313 Intergovernmental: Local - other - - 21,327 - - 21,327 Charges for services: Administrative fees - - 3,465 - 3,662 7,127 Rental receipts 125,000 - - - - 125,000 Fines and Forfeits - 5,721 - - - 5,721 Investment income 430 362 125 - 43 960 Refunds and reimbursements - - - 2,372 - 2,372 Total revenues 125,430 6,083 24,917 132,685 3,705 292,820 Expenditures: Current: General government - - 18,793 - - 18,793 Public safety - 11,108 - - 2,463 13,571 Parks and recreation 169,134 - - - 169,134 Housing and development - - - 117,902 - 117,902 Total expenditures 169,134 11,108 18,793 117,902 2,463 319,400 Revenues over (under) expenditures (43,704) (5,025) 6,124 14,783 1,242 (26,580) Other financing sources (uses): Transfers in 78,650 - - 154,180 - 232,830 Transfers out (25,000) - - - - (25,000) Total other financing sources (uses) 53,650 0 0 154,180 0 207,830 Net change in fund balance 9,946 (5,025) 6,124 168,963 1,242 181,250 Fund balance (deficit) - January 1 15,816 31,172 5,668 (159,775) 2,909 (104,210) Fund balance (deficit) - December 31 $25,762 $26,147 $11,792 $9,188 $4,151 $77,040 115 - This page intentionally left blank - 116 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 (703) was established to account for the debt service associated with Flood Protection and infrastructure improvements. (Closed in 2015) State Aid Street Fund (207) 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. (Closed in 2015) Public Facilities Revenue Bonds (311) accounts for debt service for the public works building and fire station. Tax Abatement Fund (502) was established to account for debt service payments associated with the improvements to City parks. 117 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 22 NONMAJOR DEBT SERVICE FUNDS December 31, 2015 Storm Water Fund State Aid Street Fund Public Facilities Revenue Bonds Tax Abatement Fund Totals Nonmajor Debt Service Funds 2015 Assets Cash and investments $ - $ - $636,553 $236,182 $872,735 Property taxes receivable: Delinquent - - 5,430 2,134 7,564 Total assets $0 $0 $641,983 $238,316 $880,299 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $ - $ - $76 $76 Due to other governments - - 1,849 715 2,564 Total liabilities 0 0 1,849 791 2,640 Deferred inflows of resources: Unavailable revenue - - 5,430 2,134 7,564 Total deferred inflows of resources 0 0 5,430 2,134 7,564 Fund balance: Restricted - - 634,704 235,391 870,095 Total liabilities, deferred inflows of resources, and fund balance $0 $0 $641,983 $238,316 $880,299 118 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES,Statement 23 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR DEBT SERVICE FUNDS For The Year Ended December 31, 2015 Storm Water Fund State Aid Street Fund Public Facilities Revenue Bonds Tax Abatement Fund Totals Nonmajor Debt Service Funds 2015 Revenues: General property taxes $ - $ - $374,965 $150,000 $524,965 Intergovernmental: Local: ISD - tax abatement - - - 33,277 33,277 Charges for services 9,619 - - - 9,619 Investment income - 58 4,764 1,458 6,280 Total revenues 9,619 58 379,729 184,735 574,141 Expenditures: Debt service: Principal 150,000 60,000 290,000 135,000 635,000 Interest 2,250 900 67,540 39,814 110,504 Paying agent fees 137 101 223 351 812 Professional service - - - 1,219 1,219 Total expenditures 152,387 61,001 357,763 176,384 747,535 Revenues over (under) expenditures (142,768)(60,943)21,966 8,351 (173,394) Other financing sources: Transfers in - - - - - Transfers out - (5,163) - - (5,163) Total other financing sources (uses)0 (5,163)0 0 (5,163) Net change in fund balance (142,768)(66,106)21,966 8,351 (178,557) Fund balance - January 1 142,768 66,106 612,738 227,040 1,048,652 Fund balance - December 31 $0 $0 $634,704 $235,391 $870,095 119 - This page intentionally left blank - 120 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 (509) was established to provide funding for smaller improvement projects. Park Improvement Fund (501) accounts for the revenues and expenditures associated with the renovations and refurbishing of the City’s park system. Silver Lake Village Park Fund (350) 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) (closed in 2015). Capital Equipment Fund (401) is used by all City Departments and accounts for the annual purchases of capital equipment. Building Improvement Fund (510) was established to provide funding for existing City owned building improvements and renovations. HRA Directed Projects (319) was established to account for the construction and redevelopment costs within the City (closed in 2015). Storm Water Improvement Fund (702) was established to account for the construction costs associated with the 100-Year Flood Protection Project and related flooding issues (closed in 2015). 121 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 24 NONMAJOR CAPITAL PROJECT FUNDS December 31, 2015 Revolving Improvement Park Improvement Silver Lake Village Park Capital Equipment Fund Building Improvement Fund HRA Directed Projects Storm Water Improvement Totals Nonmajor Capital Project Funds 2015 Assets Cash and investments $242,207 $172,768 $ - $177,135 $3,617 $ - $ - $595,727 Due from other governmental units 9,841 - - - - - - 9,841 Accounts receivable 17,367 - - - - - - 17,367 Property taxes receivable: Delinquent - - - 646 - - - 646 Special assessment receivable 27,245 - - - - - - 27,245 Total assets $296,660 $172,768 $0 $177,781 $3,617 $0 $0 $650,826 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $17,315 $ - $ - $ - $1,928 $ - $ - $19,243 Interfund loan payable 50,580 - - - - - - 50,580 Due to other governments - - - 202 - - - 202 Total liabilities 67,895 0 0 202 1,928 0 0 70,025 Deferred inflows of resources: Unavailable revenue 27,245 - - 646 - - - 27,891 Total deferred inflows of resources 27,245 0 0 646 0 0 0 27,891 Fund balance (deficit): Assigned 201,520 172,768 - 176,933 1,689 - - 552,910 Total fund balance (deficit)201,520 172,768 0 176,933 1,689 0 0 552,910 Total liabilities, deferred inflows of resources, and fund balance $296,660 $172,768 $0 $177,781 $3,617 $0 $0 $650,826 122 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES,Statement 25 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2015 Revolving Improvement Park Improvement Silver Lake Village Park Capital Equipment Fund Building Improvement Fund HRA Directed Projects Storm Water Improvement Totals Nonmajor Capital Project Funds 2015 Revenues: General property taxes $ - $ - $ - $48,996 $ - $ - $ - $48,996 Intergovernmental: Other - local participation - - - - - - 626,550 626,550 Special assessments 8,126 - - - - - - 8,126 Charges for services: Service charges - 1,500 - - - - 181,268 182,768 Investment income 7,945 2,213 - 1,611 352 - 1,152 13,273 Contributions and donations - - - 12,500 - - - 12,500 Refunds and reimbursements 23,460 - - - - - - 23,460 Other - - - 424 - 428 - 852 Total revenues 39,531 3,713 0 63,531 352 428 808,970 916,525 Expenditures: General government: Materials and supplies - - - 39,308 - - - 39,308 Capital outlay - - - 36,682 131,494 - - 168,176 Public safety: Capital outlay - - - 150,645 - - - 150,645 Public works: Materials and supplies - - - - 1,928 - 31,158 33,086 Contractual services 79,487 - - - - - 30,139 109,626 Capital outlay - - - 67,831 - - - 67,831 Parks and recreation: Materials and supplies - 18,587 - - - - - 18,587 Debt service: Interest 2,955 - - - - - - 2,955 Construction/acquistion costs - - 519 - - - 619,618 620,137 Total expenditures 82,442 18,587 519 294,466 133,422 0 680,915 1,210,351 Revenues over (under) expenditures (42,911) (14,874)(519) (230,935) (133,070)428 128,055 (293,826) Other financing sources: Transfers in - - 172,069 263,200 168,564 121,354 - 725,187 Transfers out (446,780) - - - - (71,941) (204,701) (723,422) Sale of capital assets - - - 25,860 - - - 25,860 Total other financing sources (446,780)0 172,069 289,060 168,564 49,413 (204,701) 27,625 Net change in fund balance (489,691) (14,874) 171,550 58,125 35,494 49,841 (76,646) (266,201) Fund balance (deficit) - January 1 691,211 187,642 (171,550) 118,808 (33,805) (49,841) 76,646 819,111 Fund balance (deficit) - December 31 $201,520 $172,768 $0 $176,933 $1,689 $0 $0 $552,910 123 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 601 COMMUNITY CENTER FUND Statement 26 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2015 With Comparative Actual Amounts For The Year Ended December 31, 2014 2014 Original Final Actual Actual Revenues: Charges for services: Rental receipts $125,000 $125,000 $125,000 $125,000 Investment income - - 430 439 Other - - - 6,980 Total revenues 125,000 125,000 125,430 132,419 Expenditures: Parks and recreation: Current: Personal services 15,242 15,242 14,281 14,124 Supplies 2,700 2,700 3,489 2,151 Contractual services 160,874 160,874 151,364 176,541 Total expenditures 178,816 178,816 169,134 192,816 Revenues over (under) expenditures (53,816) (53,816) (43,704) (60,397) Other financing sources: Transfer in 78,650 78,650 78,650 64,654 Transfer out (25,000) (25,000) (25,000) (25,000) Total other financing sources (uses) 53,650 53,650 53,650 39,654 Net change in fund balance ($166) ($166) 9,946 (20,743) Fund balance - January 1 15,816 36,559 Fund balance - December 31 $25,762 $15,816 2015 Budgeted Amounts 124 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 230 POLICE FORFEITURE FUND Statement 27 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2015 With Comparative Actual Amounts For The Year Ended December 31, 2014 2014 Original Final Actual Actual Revenues: Forfeiture and confiscation $6,500 $6,500 $5,721 $7,549 Investment income - - 362 488 Total revenues 6,500 6,500 6,083 8,037 Expenditures: Public safety: Current: Personal services 1,500 1,500 1,085 1,984 Supplies 3,500 3,500 10,023 3,622 Other services and charges 1,500 1,500 - - Total expenditures 6,500 6,500 11,108 5,606 Revenues over (under) expenditures $0 $0 (5,025) 2,431 Fund balance - January 1 31,172 28,741 Fund balance - December 31 $26,147 $31,172 2015 Budgeted Amounts 125 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 225 RECYCLING FUND Statement 28 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2015 With Comparative Actual Amounts For The Year Ended December 31, 2014 2014 Original Final Actual Actual Revenues: Intergovernmental: Hennepin County recycling grant $17,400 $17,400 $21,327 $17,383 Charges for services - - 3,465 - Investment income - - 125 76 Total revenues 17,400 17,400 24,917 17,459 Expenditures: General government: Current: Personal services - 4,568 7,754 - Other services and charges 15,660 11,900 11,039 - Total expenditures 15,660 16,468 18,793 0 Revenues over (under) expenditures 1,740 932 6,124 17,459 Other financing sources: Transfer out - - - (15,645) Total other financing sources - - - (15,645) Net change in fund balance $1,740 $932 6,124 1,814 Fund balance (deficit) - January 1 5,668 3,854 Fund balance (deficit) - December 31 $11,792 $5,668 2015 Budgeted Amounts 126 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 301 HRA FUND Statement 29 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2015 With Comparative Actual Amounts For The Year Ended December 31, 2014 2014 Original Final Actual Actual Revenues: General property taxes $130,126 $130,126 $130,313 $153,194 Investment income 2,500 - - - Refunds and reimbursements 15,000 15,000 2,372 - Total revenues 147,626 145,126 132,685 153,194 Expenditures: Housing and redevelopment: Current: Personal services 93,412 93,412 99,041 88,861 Contractual services 54,150 54,150 18,861 54,292 Total expenditures 147,562 147,562 117,902 143,153 Revenues over (under) expenditures 64 (2,436) 14,783 10,041 Other financing sources: Transfer in - - 154,180 - Total other financing sources - - 154,180 - Net change in fund balance $64 ($2,436) 168,963 10,041 Fund balance (deficit) - January 1 (159,775) (169,816) Fund balance (deficit) - December 31 $9,188 ($159,775) 2015 Budgeted Amounts 127 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 240 FIRE EDUCATION / TRAINING FUND Statement 30 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2015 With Comparative Actual Amounts For The Year Ended December 31, 2014 2014 Original Final Actual Actual Revenues: Charges for services $3,000 $3,000 $3,662 $3,385 Investment income - - 43 61 Total revenues 3,000 3,000 3,705 3,446 Expenditures: Public safety: Current: Personal services 1,627 1,627 1,420 1,340 Materials and supplies 650 650 1,043 2,380 Total expenditures 2,277 2,277 2,463 3,720 Revenues over (under) expenditures $723 $723 1,242 (274) Fund balance - January 1 2,909 3,183 Fund balance - December 31 $4,151 $2,909 2015 Budgeted Amounts 128 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 31 AGENCY FUND For The Year Ended December 31, 2015 Balance Balance January 1, December 31, 2015 Additions Deletions 2015 Developer Deposits Assets: Cash and investments ($1,090) $1,090 ($4,122) ($4,122) Accounts receivable - net 1,090 4,122 (1,090) 4,122 Total assets $ - $5,212 ($5,212) $ - Liabilities: Deposits payable $ - $ - $ - $ - 129 - This page intentionally left blank - 130 SUPPLEMENTARY FINANCIAL INFORMATION 131 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET STREET IMPROVEMENT DEBT SERVICE FUND December 31, 2015 Prior to 2008 Street Improvement Bonds Fund 2008 Street Improvement Bond Fund 2009 Street Improvement Bond Fund Assets Cash and investments $1,562,050 $183,119 $363,721 Property taxes receivable: Delinquent 11,984 2,347 2,624 Due from county 744 - 190 Special assessments receivable 510,956 - 133,767 Total assets $2,085,734 $185,466 $500,302 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $324 $450 $ - Due to other governmental units 2,982 891 720 Total liabilities 3,306 1,341 720 Deferred inflows of resources: Unavailable revenue 522,941 2,347 135,763 Total deferred inflows of resources 522,941 2,347 135,763 Fund balance (deficit): Restricted 1,559,487 181,778 363,819 Total fund balance (deficit) 1,559,487 181,778 363,819 Total liabilities, deferred inflows of resources, and fund balance (deficit) $2,085,734 $185,466 $500,302 132 Exhibit 1 2010 Street Improvement Bond Fund 2011 Street Improvement Bond Fund 2012 Street Improvement Bond Fund 2013 Street Improvement Bond Fund 2014 Street Improvement Bond Fund 2015 Street Improvement Bond Fund Street Improvement Debt Service Funds 2015 $153,497 $422,716 $332,792 $437,990 $176,498 $60,803 $3,693,186 1,546 1,982 1,822 1,226 856 - 24,387 - - 1,112 - 253 - 2,299 38,147 113,731 303,650 152,143 230,809 354,868 1,838,071 $193,190 $538,429 $639,376 $591,359 $408,416 $415,671 $5,557,943 $ - $ - $ - $ - $ - $ - $774 494 645 123 271 101 - 6,227 494 645 123 271 101 0 7,001 39,693 115,713 305,472 153,369 231,665 354,868 1,861,831 39,693 115,713 305,472 153,369 231,665 354,868 1,861,831 153,003 422,071 333,781 437,719 176,650 60,803 3,689,111 153,003 422,071 333,781 437,719 176,650 60,803 3,689,111 $193,190 $538,429 $639,376 $591,359 $408,416 $415,671 $5,557,943 133 CITY OF ST. ANTHONY, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE STREET IMPROVEMENT DEBT SERVICE FUND For The Year Ended December 31, 2015 Prior to 2008 Street Improvement Bonds Fund 2008 Street Improvement Bond Fund 2009 Street Improvement Bond Fund Revenues: General property taxes $777,584 $141,488 $182,502 Special assessments 148,461 - 18,861 Investment income 11,400 1,045 2,933 Total revenues 937,445 142,533 204,296 Expenditures: Debt service: Principal 890,000 1,390,000 155,000 Interest 113,749 57,714 69,343 Paying agent fees 2,004 1,485 204 Professional service 5,276 7,170 239 Issuance costs 27 - - Total expenditures 1,011,056 1,456,369 224,786 Revenues over (under) expenditures (73,611) (1,313,836) (20,490) Other financing sources (uses): Bonds issued - - - Transfers in 12,663 25,000 - Total other financing sources (uses) 12,663 25,000 0 Net change in fund balance (60,948) (1,288,836) (20,490) Fund balance (deficit) - January 1 1,620,435 1,470,614 384,309 Fund balance (deficit) - December 31 $1,559,487 $181,778 $363,819 134 Exhibit 2 2010 Street Improvement Bond Fund 2011 Street Improvement Bond Fund 2012 Street Improvement Bond Fund 2013 Street Improvement Bond Fund 2014 Street Improvement Bond Fund 2015 Street Improvement Bond Fund Street Improvement Debt Service Funds $106,043 $139,487 $136,421 $116,672 $154,964 $ - $1,755,161 4,361 35,370 36,338 43,882 48,639 16,441 352,353 1,048 3,859 2,730 1,953 678 380 26,026 111,452 178,716 175,489 162,507 204,281 16,821 2,133,540 80,000 110,000 130,000 115,000 - - 2,870,000 34,293 57,950 45,213 28,304 70,820 - 477,386 400 210 87 550 - - 4,940 1,922 221 162 355 407 - 15,752 - - - - 450 - 477 116,615 168,381 175,462 144,209 71,677 0 3,368,555 (5,163) 10,335 27 18,298 132,604 16,821 (1,235,015) - - - - - 43,982 43,982 - - - 191,319 - - 228,982 0 0 0 191,319 0 43,982 272,964 (5,163) 10,335 27 209,617 132,604 60,803 (962,051) 158,166 411,736 333,754 228,102 44,046 - 4,651,162 $153,003 $422,071 $333,781 $437,719 $176,650 $60,803 $3,689,111 135 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET Exhibit 3 HRA TIF DEBT SERVICE FUND December 31, 2015 2015B G.O Tax Increment Refunding Bonds 2014B G.O Tax Increment Refunding Bonds HRA TIF Debt Service Fund Totals 2015 Assets Cash and investments $3,739 $8,910 $12,649 Accounts receivable 4,097 - 4,097 Total assets $7,836 $8,910 $16,746 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $975 $450 $1,425 Total liabilities 975 450 1,425 Fund balance: Restricted 6,861 8,460 15,321 Total liabilities, deferred inflows of resources, and fund balance $7,836 $8,910 $16,746 136 CITY OF ST. ANTHONY, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES Exhibit 4 IN FUND BALANCE HRA TIF DEBT SERVICE FUND For The Year Ended December 31, 2015 2015B G.O Tax Increment Refunding Bonds 2014B G.O Tax Increment Refunding Bonds HRA TIF Debt Service Fund Totals 2015 Revenues: Investment income $63 $ - $63 Total revenues 63 0 63 Expenditures: Debt service: Principal 135,000 110,000 245,000 Interest and other 234,175 102,093 336,268 Paying agent fees 3,442 1,192 4,634 Bond issuance costs 84,152 - 84,152 Total expenditures 456,769 213,285 670,054 Revenues over (under) expenditures (456,706) (213,285) (669,991) Other financing sources (uses): Refunding bonds issued 4,310,000 - 4,310,000 Premium on debt issued 110,659 - 110,659 Payment to refunded bond escrow agent (4,332,935) - (4,332,935) Transfers in 373,200 214,000 587,200 Total other financing sources (uses) 460,924 214,000 674,924 Net change in fund balance 4,218 715 4,933 Fund balance - January 1 2,643 7,745 10,388 Fund balance - December 31 $6,861 $8,460 $15,321 137 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET Exhibit 5 HRA TIF IMPROVEMENTS FUND December 31, 2015 Chandler Place Apache (Wal-Mart) Apache (Cub Foods)Eliminations HRA TIF Improvements Total 2015 Assets Cash and investments $51,752 $843,569 $465,030 $ - $1,360,351 Interfund loan receivable 646,850 - 722,566 (1,369,416) - Property taxes receivable: Delinquent - 69,656 - - 69,656 Due from county - 4,138 - - 4,138 Total assets $698,602 $917,363 $1,187,596 ($1,369,416) $1,434,145 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $232,427 $630 $ - $233,057 Interfund loans payable - 2,328,742 - (1,369,416) 959,326 Total liabilities 0 2,561,169 630 (1,369,416) 1,192,383 Deferred inflows of resources: Unavailable revenue - 69,656 - - 69,656 Total deferred inflows of resources 0 69,656 0 0 69,656 Fund balance (deficit): Restricted 698,602 - 1,186,966 - 1,885,568 Unassigned - (1,713,462) - - (1,713,462) Total fund balance (deficit) 698,602 (1,713,462) 1,186,966 0 172,106 Total liabilities, deferred inflows of resources, and fund balance (deficit) $698,602 $917,363 $1,187,596 ($1,369,416) $1,434,145 Tax Increment Financing Districts 138 CITY OF ST. ANTHONY, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES Exhibit 6 IN FUND BALANCE HRA TIF IMPROVEMENTS FUND For The Year Ended December 31, 2015 Chandler Place Apache (Wal-Mart) Apache (Cub Foods) HRA TIF Improvements Totals 2015 Revenues: Tax increment collections $ - $1,174,889 ($68,307) $1,106,582 Investment income 26,218 4,896 35,008 66,122 Total revenues 26,218 1,179,785 (33,299) 1,172,704 Expenditures: General government: Other - 15,559 - 15,559 Housing and redevelopment 381 - 1,011 1,392 Debt service: Interest - 93,149 - 93,149 Developer incentives - 475,886 - 475,886 Total expenditures 381 584,594 1,011 585,986 Revenues over (under) expenditures 25,837 595,191 (34,310) 586,718 Other financing sources (uses): Transfers out - (587,200) - (587,200) Net change in fund balance 25,837 7,991 (34,310) (482) Fund balance - January 1 672,765 (1,721,453) 1,221,276 172,588 Fund balance (deficit) - December 31 $698,602 ($1,713,462) $1,186,966 $172,106 Tax Increment Financing Districts 139 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET Exhibit 7 STREET IMPROVEMENT PROJECT FUND December 31, 2015 2013 Street Improvement Fund 2014 Street Improvement Fund 2015 Street Improvement Fund 2016 Street Improvement Fund Total Street Improvement Project Fund Assets Cash and investments $ - $25,898 $341,299 $ - $367,197 Due from other governmental units - 25,000 49,796 70,007 144,803 Total assets $0 $50,898 $391,095 $70,007 $512,000 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $917 $9,584 $206,305 $216,806 Contracts payable - 47,529 106,036 - 153,565 Interfund payable - - - 414,064 414,064 Total liabilities 0 48,446 115,620 620,369 784,435 Fund balance (deficit): Assigned - 2,452 275,475 (277,927) - Unassigned - - - (272,435) (272,435) Total fund balance (deficit) 0 2,452 275,475 (550,362) (272,435) Total liabilities, deferred inflows of resources, and fund balance (deficit) $0 $50,898 $391,095 $70,007 $512,000 140 CITY OF ST. ANTHONY, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES AND Exhibit 8 CHANGES IN FUND BALANCE STREET IMPROVEMENT PROJECT FUND For The Year Ended December 31, 2015 2013 Street Improvement Fund 2014 Street Improvement Fund 2015 Street Improvement Fund 2016 Street Improvement Fund Total Street Improvement Project Fund Revenues: Intergovernmental $ - $ - $31,123 $ - $31,123 Special assessments - 11,452 250,000 - 261,452 Investment income 2,204 340 7,219 - 9,763 Refunds and reimbursement - - - 70,007 70,007 Total revenues 2,204 11,792 288,342 70,007 372,345 Expenditures: Debt service: Issuance costs - - 58,053 - 58,053 Construction/acquisition costs - 139,893 2,438,643 551,596 3,130,132 Total expenditures 0 139,893 2,496,696 551,596 3,188,185 Revenues over (under) expenditures 2,204 (128,101) (2,208,354) (481,589) (2,815,840) Other financing sources (uses): Bonds issued - - 2,536,018 - 2,536,018 Premium on debt issued - - 78,034 - 78,034 Transfers in - 100,000 - - 100,000 Transfers out (191,319) - - - (191,319) Total other financing sources (uses) (191,319) 100,000 2,614,052 0 2,522,733 Net change in fund balance (189,115) (28,101) 405,698 (481,589) (293,107) Fund balance (deficit) - January 1 189,115 30,553 (130,223) (68,773) 20,672 Fund balance (deficit) - December 31 $0 $2,452 $275,475 ($550,362) ($272,435) 141 CITY OF ST. ANTHONY, MINNESOTA SCHEDULE OF REVENUES, EXPENSES AND CHANGES Exhibit 9 IN FUND NET POSITION WATER AND SEWER ENTERPRISE FUND For The Year Ended December 31, 2015 With Comparative Totals For The Year Ended December 31, 2014 704 Water Filtration 701 Water and Purification 701 Sewer 2015 2014 Operating revenues: Charges for services $897,232 $ - $947,618 $1,844,850 $1,789,849 Connection charges 3,180 - 5,950 9,130 10,400 Total operating revenues 900,412 0 953,568 1,853,980 1,800,249 Operating expenses: Personal services 413,080 76,595 295,468 785,143 738,151 Supplies 14,567 37,081 13,414 65,062 80,317 Contracted services and other 75,856 48,429 32,662 156,947 195,017 Treatment charges (MCES) - - 593,381 593,381 620,470 Other 116,197 23,009 29,508 168,714 208,478 Depreciation 234,823 - 73,536 308,359 288,955 Total operating expenses 854,523 185,114 1,037,969 2,077,606 2,131,388 Operating income (loss) $45,889 ($185,114) ($84,401) (223,626) (331,139) Nonoperating revenues (expenses): Investment income 82,393 105,631 Interest expense (19,984) (22,275) Fees and cost of issuance (742) (683) Refunds and reimbursements 45,655 - Miscellaneous income 16,391 3,182 Total nonoperating revenues (expenses) 123,713 85,855 Income (loss) before capital contributions and transfers (99,913) (245,284) Capital contributions and transfers: Capital contributions 677,200 490,656 Transfers in - 15,645 Transfers out (185,564) (100,000) Change in net position 391,723 161,017 Net position - January 1 9,493,190 9,332,173 Net position - December 31 $9,884,913 $9,493,190 Operations Totals 142 III. STATISTICAL SECTION (UNAUDITED) This part of the City of St. Anthony, Minnesota’s Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the City of St. Anthony, Minnesota’s overall financial health. Contents Page Financial Trends These tables contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. 144-149 Revenue Capacity These tables contain information to help the reader assess the City’s most significant local revenue source, the property tax. 150-153 Debt Capacity These tables present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. 154-163 Demographic and Economic Information These tables offer demographic and economic indicators to help the reader understand the enviornment within which the City’s financial activities take place. 164-165 Operating Information These tables contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. 166-168 Sources: Unless otherwise noted, the information in these tables is derived from the comprehensive financial reports for the relevant year. 143 CITY OF ST. ANTHONY, MINNESOTA NET POSITION BY COMPONENT Last Ten Fiscal Years (Accrual Basis of Accounting) 2006 2007 2008 2009 Governmental activities: Net invested in capital assets $9,108,004 $12,640,902 $13,372,903 $12,367,934 Restricted for: Debt service 6,541,771 3,228,881 2,327,517 6,782,289 Redevelopment activity - - - - Public safety 42,994 53,908 63,701 60,985 Unrestricted 2,287,779 (383,292) 90,615 (3,478,013) Total governmental activities net position $17,980,548 $15,540,399 $15,854,736 $15,733,195 Business-type activities: Net invested in capital assets $1,822,792 $2,703,188 $4,745,674 $5,017,685 Restricted for: Debt service 120,000 120,000 120,000 120,000 Unrestricted 1,973,533 1,183,416 1,042,856 730,653 Total business-type activities net position $3,916,325 $4,006,604 $5,908,530 $5,868,338 Primary government: Net invested in capital assets $10,930,796 $15,344,090 $18,118,577 $17,385,619 Restricted for: Debt service 6,661,771 3,348,881 2,447,517 6,902,289 Redevelopment activity - - - - Public safety 42,994 53,908 63,701 60,985 Unrestricted 4,261,312 800,124 1,133,471 (2,747,360) Total primary government net position $21,896,873 $19,547,003 $21,763,266 $21,601,533 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. Note: GASB 68 was implemented in 2015. Net position was restated for 2014 to reflect the reporting of net pension liability and pension related deferred outflows of resources. Net position for years prior to 2014 was not restated. Note: The City closed the Stormwater Improvement Capital Project Fund during 2015 and transferred the majority of the net position to the Stormwater Utility Fund. Fiscal Year 144 Table 1 2010 2011 2012 2013 2014 2015 $14,098,233 $15,334,754 $15,182,974 $16,217,013 $14,953,582 $10,604,121 4,372,871 4,263,706 4,741,115 3,347,895 5,717,140 6,147,172 - - - - - 12,411 34,320 16,281 21,521 21,528 23,471 19,283 (1,339,821) (6,358,682) (5,566,910) (5,239,277) (9,513,189) (10,391,885) $17,165,603 $13,256,059 $14,378,700 $14,347,159 $11,181,004 $6,391,102 $4,915,905 $4,767,233 $4,523,383 $5,605,845 $6,036,192 $12,143,158 120,000 - - - - - 615,994 5,642,649 5,814,241 5,965,067 5,570,360 5,649,685 $5,651,899 $10,409,882 $10,337,624 $11,570,912 $11,606,552 $17,792,843 $19,014,138 $20,101,987 $19,706,357 $21,822,858 $20,989,774 $22,747,279 4,492,871 4,263,706 4,741,115 3,347,895 5,717,140 6,147,172 - - - - - 12,411 34,320 16,281 21,521 21,528 23,471 19,283 (723,827) (716,033) 247,331 725,790 (3,942,829) (4,742,200) $22,817,502 $23,665,941 $24,716,324 $25,918,071 $22,787,556 $24,183,945 Fiscal Year 145 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN NET POSITION Table 2 Last Ten Fiscal Years Page 1 of 2 (Accrual Basis of Accounting) 2006 2007 2008 2009 2010 2011 (1)2012 2013 (2)2014 2015 Expenses Governmental activities: General government $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 $1,342,360 Public safety 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 4,757,637 Public works 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 2,741,411 Parks and recreation 806,512 450,549 416,881 424,590 440,858 457,822 377,689 569,254 608,966 592,892 Services to other cities 649,625 911,419 940,807 1,026,842 1,016,479 1,039,009 1,039,504 - - - Housing and redevelopment 2,967,835 173,098 536,068 2,534,700 654,145 671,934 649,104 565,303 575,738 596,444 Interest on long-term debt 1,096,390 1,411,926 1,497,107 1,407,527 1,290,844 1,302,681 1,197,073 1,217,646 1,044,635 845,856 Total governmental activities expenses 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 10,876,600 Business-type activities: Liquor 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 5,728,876 Water 899,686 775,828 794,433 843,723 826,352 874,099 901,732 859,112 845,396 869,446 Water Filtration and Purification - - - - - 132,981 114,337 124,505 239,074 185,964 Sewer 736,967 785,491 860,918 932,979 956,635 944,097 1,041,085 1,019,421 1,069,876 1,051,261 Total business-type activities expenses 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 7,835,547 Total primary government expenses $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 $18,712,147 Program revenues Governmental activities: Charges for services: Services to other cities $747,675 $1,039,000 $1,096,200 $1,156,500 $1,157,190 $1,180,334 $1,192,138 $ - $ - $ - Other activities 999,142 876,425 841,448 972,456 817,062 803,397 1,067,084 2,506,369 2,374,306 2,414,912 Operating grants and contributions 684,819 609,886 522,542 456,357 475,411 454,841 447,554 585,950 499,538 499,126 Capital grants and contributions 974,678 755,930 1,684,417 1,659,382 992,511 839,137 1,566,565 780,072 1,070,975 1,367,745 Total governmental activities program revenues 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 4,281,783 Business-type activities: Charges for services: Liquor 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 5,893,916 Water 778,979 841,611 812,371 806,987 785,642 798,240 957,824 933,051 879,007 900,412 Water Filtration and Purification - - - - - - - - - 45,655 Sewer 776,886 850,260 803,350 776,330 789,872 779,513 877,794 947,632 921,242 953,568 Operating grants and contributions - - - - - - - - - - Capital grants and contributions - - - - - - - - - - Total business-type activities program revenues 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 7,793,551 Total primary government program revenues $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 $12,075,334 Fiscal Year 146 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN NET POSITION Table 2 Last Ten Fiscal Years Page 2 of 2 (Accrual Basis of Accounting) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Net (expense) revenue: Governmental activities ($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) ($6,594,817) Business-type activities 304,828 577,568 351,025 262,493 258,443 85,228 298,870 305,979 (155,298) (41,996) Total primary government net (expense) revenue (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) (6,636,813) General revenues and other changes in net position: Governmental activities: Taxes: Property taxes $3,668,503 $3,968,436 $4,118,365 $4,442,708 $4,750,440 $4,872,840 $5,408,188 $5,703,707 $6,030,558 $5,893,900 Tax increment collections 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 1,121,627 Grants and contributions 94,470 159,741 88,291 20,918 22,827 24,673 10,639 26,384 461,964 516,015 Unrestricted investment earnings 514,440 698,345 403,426 208,761 224,693 6,803 55,206 25,914 189,441 146,023 Other 96,837 77,745 36,365 16,103 61,866 148,500 208,525 389,785 104,113 172,913 Gain on sale of capital assets 8,730 - - 3,981 - - 46,195 - 33,204 7,653 Transfers 485,000 580,356 (1,514,827) 319,871 478,000 595,200 610,000 (809,238) (17,982) (6,053,216) Total governmental activities 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 1,804,915 Business-type activities: Unrestricted investment earnings 78,638 74,764 18,985 6,833 (336) 52,659 122,833 51,593 111,512 86,407 Other 12,490 18,303 17,089 10,353 3,454 3,976 17,569 66,478 61,444 88,664 Transfers (485,000) (580,356) 1,514,827 (319,871) (478,000) (595,200) (610,000) 809,238 17,982 6,053,216 Total business-type activities (393,872) (487,289) 1,550,901 (302,685) (474,882) (538,565) (469,598) 927,309 190,938 6,228,287 Total primary government $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 $8,033,202 Change in net position: Governmental activities ($1,372,163) ($2,440,149) $314,337 ($121,541) $1,335,737 $1,342,842 $1,734,198 $179,582 $1,177,098 ($4,789,902) Business-type activities (89,044) 90,279 1,901,926 (40,192) (216,439) (453,337) (170,728) 1,233,288 35,640 6,186,291 Total primary government ($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 $1,396,389 (1) In 2011 the Water Filtration and Purification fund was reclassified to the Water and Sewer Proprietary Fund. (2) In 2013, services to other cities were reclassified to public safety expense. Note: GASB 65 was implemented in 2013. Governmental activity expenses were restated for 2012 to reflect the expensing of bond issuance costs in the year of issuance. Expenses for years prior to 2012 were not restated. Note: GASB 68 was implemented for 2015. Expenses for years prior to 2015 were not restated. Note: The City closed the Stormwater Improvement Capital Project Fund during 2015 and transferred the majority of the net position to the Stormwater Utility Fund. Fiscal Year 147 CITY OF ST. ANTHONY, MINNESOTA FUND BALANCES - GOVERNMENTAL FUNDS Table 3 Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 General Fund: Reserved $44,852 $46,543 $51,205 $53,849 $57,430 $ - $ - $ - $ - $ - Unreserved 1,237,373 1,391,816 1,389,299 1,471,584 1,567,270 - - - - - Nonspendable - - - - - 55,271 68,481 74,049 91,136 107,412 Unassigned - - - - - 1,647,566 1,906,856 2,074,490 2,384,345 2,338,600 Total general fund $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 $2,446,012 All other governmental funds: Reserved $5,564,131 $4,116,654 $3,595,470 $6,264,349 $4,625,111 $ - $ - $ - $ - $ - Unreserved, reported in: Special revenue funds 5,335,977 5,650,265 5,576,157 5,329,291 5,212,683 - - - - - Capital projects funds 1,500,372 695,197 967,355 314,789 243,408 - - - - - Nonspendable - - - - - 132 129 49 1,631 2,157 Restricted - - - - - 6,868,120 8,594,337 2,002,737 7,627,714 6,491,789 Committed - - - - - 210,953 222,184 33,015 78,180 94,107 Assigned - - - - - 763,667 1,344,529 1,253,470 1,318,583 578,258 Unassigned - - - - - (1,240,578) (1,473,482) (175,561) (2,407,745) (2,062,163) Total all other governmental funds $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 $5,104,148 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. Fiscal Year 148 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Table 4 Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2006 2007 2008 2009 2010 2011 (1)2012 2013 (2)2014 2015 Revenues: General property taxes $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 $5,897,070 Tax increment collections 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 1,106,582 Licenses, fees and permits 244,170 213,842 247,878 358,381 224,096 195,563 290,985 342,390 351,102 296,465 Intergovernmental 954,911 706,080 2,039,592 1,430,366 1,239,053 861,744 1,530,983 792,477 1,464,479 1,644,481 Special assessments 589,812 441,327 385,197 506,262 398,895 517,678 427,467 587,191 491,988 621,931 Charges for services 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 1,879,520 Cable franchise fees 70,737 85,162 92,606 92,309 92,786 96,608 101,403 104,089 109,009 108,104 Fines and forfeits 135,960 164,788 139,421 122,870 128,165 117,835 130,560 129,363 126,584 130,823 Investment income 507,615 689,428 400,038 184,053 224,598 6,792 55,201 24,197 189,216 145,447 Contributions and donations 6,300 37,100 3,950 3,450 2,834 610 2,778 16,134 45,640 15,903 Miscellaneous 511,851 404,611 186,449 53,354 708,181 148,500 194,052 375,719 104,113 172,913 Total revenues 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 12,019,239 Expenditures: Current: General government 952,291 945,295 1,076,699 1,017,405 1,170,630 883,478 1,059,361 836,190 926,501 948,089 Public safety 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 4,352,048 Public works 759,254 809,751 679,269 761,530 726,064 684,761 818,851 1,042,876 1,001,378 1,043,791 Parks and recreation 783,791 428,341 394,673 401,787 388,808 366,153 344,702 420,826 463,057 446,684 Services to other cities 649,625 911,419 940,807 1,026,842 1,016,479 1,039,009 1,039,504 - - - Nondepartmental 1,501 48,735 23,387 6,798 6,940 22,283 160,513 56,117 59,265 40,139 Housing and redevelopment 439,422 173,098 212,583 191,608 183,513 227,921 240,097 150,070 143,863 119,294 Capital outlay: General government 6,389 125 - - - 12,661 46,588 8,157 38,826 168,176 Public safety 229,174 12,993 - - 67,850 152,405 130,000 5,792 283,189 150,645 Public works 21,056 316,264 318,668 271,459 212,029 112,158 170,056 270,443 53,143 67,831 Parks and recreation 19,712 - - - - - - - 49,464 - Debt service: Principal retirement 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 3,750,000 Interest 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 1,020,262 Paying agent fees 9,373 11,501 10,601 9,519 8,763 11,582 18,811 16,387 7,853 10,386 Professional service 9,140 1,901 5,080 5,077 3,117 30,109 3,480 6,682 17,104 16,971 Issuance costs - 208,545 - 49,420 - 67,278 132,217 66,035 185,800 142,682 Construction/acquisition costs 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 3,750,269 Developer incentives 2,769,938 3,592,385 323,485 443,092 470,632 444,013 409,007 415,233 431,875 475,886 District decertified - repayment of tax increments 36,580 - - - - - - - - - Total expenditures 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 16,503,153 Revenues over (under) expenditures (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) (4,483,914) Other financing sources (uses): Bonds issued 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 2,580,000 Refunding bonds issued - - - 2,855,000 - 3,225,000 7,300,000 - 4,970,000 4,310,000 Redemption of refunded bonds - - - (1,210,000) - (1,030,000) - - - - Payment to refunded bond escrow agent - - - - - - (4,015,373) - - (4,332,935) Premium on debt issued 30,669 - 8,749 140,492 402 105,598 190,221 42,080 158,044 188,693 Discount on debt issued (3,069) (213) - - - - - - - - Sale of capital assets 18,855 8,744 14,705 12,056 15,347 9,982 10,962 25,244 13,390 25,860 Transfers in 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 2,069,259 Transfers out (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) (1,900,647) Total other financing sources(uses) 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 2,940,230 Net change in fund balance $493,689 ($1,782,325) ($320,989) $1,854,376 ($1,824,631) $1,851,615 $2,488,931 ($901,324) ($456,743) ($1,543,684) Debt service as a percentage of noncapital expenditures 40.0% 27.4% 38.1% 33.7% 46.1% 40.4% 44.6% 43.6% 54.2% 36.5% Debt service as percentage of total expenditures 34.4% 19.0% 27.6% 22.3% 37.8% 33.5% 36.9% 37.9% 44.8% 28.9% (1) 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. Fiscal Year 149 CITY OF ST. ANTHONY, MINNESOTA TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY Table 5 Last Ten Fiscal Years 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 Capacity * Value Rate Value of EMV 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% 2015 6,286,042 2,172,970 85,325 8,544,337 (607,841) 7,936,496 72.93% 760,404,500 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. 150 CITY OF ST. ANTHONY, MINNESOTA DIRECT AND OVERLAPPING PROPERTY TAX RATES Table 6 Last Ten Fiscal Years City Fiscal Direct School Other Hennepin Year Rate District Districts County Total 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% 2015 72.93% 29.95% 12.23% 46.40% 161.51% 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. Overlapping Rates* 151 CITY OF ST. ANTHONY, MINNESOTA Table 7 PRINCIPAL PROPERTY TAXPAYERS Current Year and Nine Years Ago Percentage Percentage Tax of Total City Tax of Total City Capacity Capacity Capacity Capacity Taxpayer Value Rank Value Value Rank Value Inland Silver Lake Village LLC $720,460 1 8.43% $607,470 1 7.48% St. Anthony Leased Housing Assoc.383,167 2 4.48%- - 0.00% Autumn Woods Partners LP/ Autumn Woods II LLC 288,600 3 3.38% 205,800 2 2.53% Equinox Properties LLC 189,060 4 2.21% 199,500 3 2.46% St. Anthony Shopping Center 128,730 5 1.51% 59,250 4 0.73% Chandler Place LP 109,295 6 1.28% 79,931 5 0.98% Carvelle Apartments (Mortenson)82,706 7 0.97% 67,500 6 0.83% St. Anthony Nursing Home LP 78,289 8 0.92% 74,165 7 0.91% Northern States Power Co.64,068 9 0.75% 120,000 8 1.48% Lowry Grove Partnership 48,888 10 0.57%- - 0.00% Hermana Prop - - - 59,250 9 0.73% Walgreens - - - 58,650 10 0.72% Total $2,093,263 24.50% $1,531,516 18.85% Total All Property $8,544,337 $8,124,934 20062015 152 CITY OF ST. ANTHONY, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Table 8 Last Ten Fiscal Years Fiscal Taxes Collections Year Levied in Ended For The Percentage Subsequent Percentage December 31, Fiscal Year Amount of Levy Years Amount of Levy 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 (1)4,088,462 98.05%30,820 4,119,282 98.79% 2009 4,465,113 (1)4,352,222 97.47%60,313 4,412,535 98.82% 2010 4,642,067 (1)4,566,162 98.36%57,475 4,623,637 99.60% 2011 4,761,665 (1)4,710,258 98.92%33,185 4,743,443 99.62% 2012 5,223,089 5,157,341 98.74%30,270 5,187,611 99.32% 2013 5,426,789 5,345,759 98.51%31,013 5,376,772 99.08% 2014 5,633,007 5,564,141 98.78%(10,101) 5,554,040 98.60% 2015 5,831,737 5,733,450 98.19% (1) Net of Market Value Homestead Credit which was subject to State unallotments or other reductions. Sources: St. Anthony Finance Department Fiscal Year of the Levy Collected Within The Total Collections to Date Not Available 153 CITY OF ST. ANTHONY, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years G.O. G.O. Tax Lease G.O. Other Total Percentage Fiscal Improvement and Reconstruction Increment Revenue Revenue G.O. Fannie Governmental of Adjusted Year Refunding Bonds Bonds Bonds Bonds Bonds Bonds Mae Loan Activities Tax Capacity 2006 $11,300,000 $ - 6,145,000$ 5,150,000$ 1,160,000$ $1,245,000 3,350,000$ 28,350,000$ 348.93% 2007 12,675,000 - 10,605,000 4,955,000 1,055,000 1,055,000 2,500,000 32,845,000 384.42% 2008 11,105,000 1,910,000 10,375,000 4,755,000 945,000 860,000 2,500,000 32,450,000 359.39% 2009 14,310,000 1,910,000 10,055,000 4,550,000 825,000 2,390,000 2,050,000 36,090,000 414.86% 2010 13,450,000 1,810,000 9,710,000 4,335,000 695,000 1,960,000 1,250,000 33,210,000 400.33% 2011 16,645,000 1,710,000 9,345,000 4,110,000 565,000 1,850,000 - 34,225,000 451.61% 2012 18,935,000 1,605,000 8,960,000 3,995,000 430,000 1,665,000 - 35,590,000 460.60% 2013 17,605,000 1,500,000 8,545,000 3,700,000 295,000 1,475,000 - 33,120,000 454.86% 2014 16,910,000 2,695,000 7,920,000 3,415,000 150,000 1,285,000 - 32,375,000 442.09% 2015 18,010,000 1,305,000 7,865,000 3,125,000 - 1,090,000 - 31,395,000 428.71% 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. Governmental Activities 154 Table 9 Water/ Sewer Water/ Liquor Total Bonds Total Percentage Sewer Revenue Business-Type Per Primary of Personal Per Bonds Bonds Activities Customer Government Income Capita* $2,050,000 $425,000 $2,475,000 891 $30,825,000 $3,391 1,975,000 350,000 2,325,000 859 35,170,000 3,864 1,895,000 270,000 2,165,000 824 34,615,000 3,846 1,815,000 185,000 2,000,000 789 38,090,000 12.20% 4,239 1,730,000 95,000 1,825,000 752 35,035,000 11.75% 4,037 1,640,000 - 1,640,000 713 35,865,000 11.03% 4,107 1,545,000 - 1,545,000 672 37,135,000 11.07% 4,228 1,440,000 - 1,440,000 626 37,135,000 10.14% 3,889 1,330,000 - 1,330,000 578 33,705,000 10.05% 3,760 1,215,000 - 1,215,000 528 32,610,000 Not Available Business-Type Activities Not Available 155 - This page intentionally left blank - 156 CITY OF ST. ANTHONY, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 10 As of December 31, 2015 Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicable* Debt Debt repaid with property taxes: (1) School Districts: ISD No. 282 $21,160,000 51.9645% $10,995,682 Counties: Hennepin 766,200,000 0.3673% 2,814,432 Ramsey 185,362,000 0.2941%545,156 Other: Metropolitan Council 155,020,000 0.2677%414,962 Three Rivers Park District 54,385,000 0.5493%298,751 Subtotal - overlapping debt 15,068,983 City direct debt (2)31,395,000 Total direct and overlapping debt $47,764,503 Sources: (1) Official Statements for City of St. Anthony (2) St. Anthony Finance Department Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. *For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value. 157 CITY OF ST. ANTHONY, MINNESOTA LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years Market value Debt limit (3% of market value) Debt applicable to limit: General obligation bonds Less: Amount set aside for repayment of general obligation debt Total net debt applicable to limit Legal debt margin 2006* 2007* 2008 Debt limit 14,610,820$ 17,870,856$ 26,094,699$ Total net debt applicable to limit 4,429,013 4,099,637 5,741,849 Legal debt margin 10,181,807$ 13,771,219$ 20,352,850$ Total net debt applicable to the limit as a percentage of debt limit 30.31% 22.94% 22.00% Source: Market Value - Hennepin County and Ramsey County, Minnesota Assessor's Offices *Debt limit was 2% of market value. Legal Debt Margin Calculation for Fiscal Year 2015 158 Table 11 $716,670,906 21,500,127 4,430,000 (819,672) 3,610,328 $17,889,799 2009 2010 2011 2012 2013 2014 2015 24,778,098$ 23,262,423$ 22,184,277$ 21,518,115$ 20,237,210$ 20,226,682$ 21,500,127$ 5,410,204 5,059,006 4,708,301 4,902,237 4,450,131 4,031,063 3,610,328 19,367,894$ 18,203,417$ 17,475,976$ 16,615,878$ 15,787,079$ 16,195,619$ 17,889,799$ 21.83% 21.75% 21.22% 22.78% 21.99% 19.93% 16.79% Legal Debt Margin Calculation for Fiscal Year 2015 159 CITY OF ST. ANTHONY, MINNESOTA PLEDGED REVENUE COVERAGE Last Ten Fiscal Years Stormwater Less Net Fiscal Service Operating Available Year Charges Expenses Revenue Principal Interest Coverage 2006 $169,255 $ - $169,255 $100,000 $63,670 103% 2007 167,373 - 167,373 105,000 58,595 102% 2008 167,373 - 167,373 110,000 53,220 103% 2009 167,793 - 167,793 120,000 40,103 105% 2010 150,431 - 150,431 130,000 28,575 95% 2011 150,833 - 150,833 130,000 18,900 101% 2012 150,734 - 150,734 135,000 14,925 101% 2013 152,750 - 152,750 135,000 10,875 105% 2014 146,423 - 146,423 145,000 6,675 97% 2015 9,619 - 9,619 150,000 2,250 6% 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. Storm Sewer Revenue Bonds Debt Service 160 Table 12 Page 1 of 2 Utility Less Net Service Operating Available Charges Expenses Revenue Principal Interest Coverage $1,556,004 $1,387,657 $168,347 $75,000 $80,694 108% 1,691,871 1,480,228 211,643 75,000 78,750 138% 1,615,721 1,367,564 248,157 80,000 77,236 158% 1,583,317 1,464,759 118,558 80,000 75,056 76% 1,575,514 1,452,765 122,749 85,000 71,093 79% 1,577,823 1,492,891 84,932 90,000 68,064 54% 1,836,635 1,621,559 215,076 95,000 66,123 133% 1,883,034 1,577,518 305,516 1,545,000 48,458 19% 1,800,249 1,603,359 196,890 110,000 26,783 144% 1,853,980 1,584,133 269,847 115,000 25,450 192% Water and Sewer Revenue Bonds Debt Service 161 CITY OF ST. ANTHONY, MINNESOTA PLEDGED REVENUE COVERAGE Last Ten Fiscal Years Less Net Fiscal Net Sales Operating Available Year (Gross Profit) Expenses Revenue Principal Interest Coverage 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 2015 1,321,028 1,147,414 173,614 - - 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. Debt Service Liquor Revenue Bonds 162 Table 12 Page 2 of 2 Special Tax Assessment Increment Collections Principal Interest Coverage Collections Principal Interest Coverage $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 3,695,000 717,234 13% 1,398,000 415,000 459,830 160% 491,988 3,350,000 590,257 12% 1,117,824 4,290,000 445,969 24% 621,931 3,355,000 585,636 16% 1,179,785 4,365,000 336,268 25% Debt Service Tax Increment BondsImprovement Bonds Debt Service 163 CITY OF ST. ANTHONY, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS Table 13 Last Ten Fiscal Years Per Capita Fiscal Personal Personal Unemployment Year Population (1)Income (2)Income(1)Rate(3) 2006 8,361 3.60% 2007 8,500 4.10% 2008 8,437 4.90% 2009 8,514 295,699,734 34,731 7.30% 2010 8,226 282,682,377 34,365 7.00% 2011 8,333 310,183,426 37,224 6.10% 2012 8,417 321,483,107 38,195 5.20% 2013 8,516 326,729,114 38,367 4.60% 2014 8,965 322,264,855 35,947 3.70% 2015 Not Available 3.30% Sources: (1) Metropolitan Council Estimates for St. Anthony - for both Ramsey County & Hennepin County. (2) 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 Not Available 164 CITY OF ST. ANTHONY, MINNESOTA PRINCIPAL EMPLOYERS Table 14 Current Year and Nine Years Ago Employer Employees Rank Employees Rank ISD No. 282 (St. Anthony - New Brighton) 332 1 260 2 St. Anthony Health Center/Chandler Place 270 2 285 1 Cub Foods 250 3 190 3 City of St. Anthony 132 4 101 5 I Care Cab 120 5 - - B&F Fastener Supply 100 6 - - St. Charles Borromeo Parish 93 7 65 6 North Memoral - Silver Lake Clinic 81 8 - - Happy's Potato Chip Company 50 9 49 7 Marshall Manufacturing 45 10 - - Wal-Mart - - 180 4 Culver's - - 48 8 Baker's Square - - 48 8 Francis A. Gross Golf Course - - 45 9 Applebee's - - 42 10 Total 1,473 1,313 20062015 165 CI T Y O F S T . A N T H O N Y , M I N N E S O T A FU L L - T I M E E Q U I V A L E N T C I T Y G O V E R N M E N T E M P L O Y E E S B Y F U N C T I O N / P R O G R A M Ta b l e 1 5 La s t T e n F i s c a l Y e a r s Fu n c t i o n / P r o g r a m 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 Ge n e r a l g o v e r n m e n t : Ad m i n i s t r a t i o n 3 . 0 0 3 . 0 0 3 . 0 0 3 . 0 0 3 . 0 0 3 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 Fi n a n c e 4 . 5 0 4 . 5 0 4 . 7 5 4 . 7 5 4 . 7 5 4 . 5 0 4 . 2 5 4 . 2 5 4 . 2 5 4 . 5 0 Po l i c e : Of f i c e r s 2 0 . 0 0 2 2 . 0 0 2 3 . 0 0 2 3 . 0 0 2 3 . 0 0 2 3 . 0 0 2 3 . 0 0 2 3 . 0 0 2 3 . 0 0 2 3 . 0 0 Su p p o r t s t a f f 2 . 0 0 2 . 0 0 2 . 5 0 2 . 5 0 2 . 5 0 2 . 5 0 2 . 5 0 2 . 5 0 2 . 5 0 2 . 5 0 Co m m u n i t y s e r v i c e o f f i c e r 0 . 5 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 Vo l u n t e e r s ( n o n - p a i d ) 1 2 . 0 0 1 2 . 0 0 1 2 . 0 0 1 2 . 0 0 1 2 . 0 0 1 2 . 0 0 1 2 . 0 0 1 2 . 0 0 1 2 . 0 0 1 2 . 0 0 Fi r e : Fi r e f i g h t e r s 7 . 0 0 7 . 0 0 7 . 0 0 7 . 0 0 7 . 0 0 7 . 0 0 7 . 0 0 7 . 0 0 7 . 0 0 7 . 0 0 Vo l u n t e e r s ( p a i d o n c a l l ) 3 . 0 0 3 . 0 0 3 . 0 0 3 . 0 0 3 . 0 0 3 . 0 0 3 . 0 0 3 . 0 0 3 . 0 0 3 . 0 0 Pu b l i c w o r k s : Ad m i n i s t r a t i o n 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 St r e e t 6 . 0 0 6 . 0 0 6 . 0 0 6 . 0 0 6 . 0 0 5 . 0 0 6 . 0 0 6 . 0 0 6 . 0 0 6 . 0 0 Pa r k 3 . 0 0 3 . 0 0 3 . 0 0 3 . 0 0 3 . 0 0 3 . 0 0 3 . 0 0 3 . 0 0 3 . 0 0 3 . 0 0 Wa t e r / S e w e r 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 Me c h a n i c 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 Se a s o n a l * 2 . 2 5 2 . 2 5 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 2 . 0 0 Li q u o r o p e r a t i o n s : Of f - s a l e : Fu l l - t i m e 5 . 0 0 5 . 0 0 5 . 0 0 5 . 0 0 5 . 0 0 5 . 0 0 5 . 0 0 5 . 0 0 5 . 0 0 5 . 0 0 Ma r k e t P l a c e - p a r t - t i m e 5 . 2 5 5 . 2 5 5 . 2 5 5 . 2 5 6 . 0 0 6 . 0 0 6 . 0 0 6 . 0 0 6 . 0 0 4 . 5 0 Si l v e r L a k e V i l l a g e - p a r t - t i m e 5 . 2 5 5 . 2 5 5 . 2 5 5 . 2 5 6 . 0 0 6 . 0 0 6 . 0 0 6 . 0 0 6 . 0 0 4 . 5 0 To t a l 8 3 . 7 5 8 6 . 2 5 8 7 . 7 5 8 7 . 7 5 8 9 . 2 5 8 8 . 0 0 8 7 . 7 5 8 7 . 7 5 8 7 . 7 5 8 5 . 0 0 So u r c e : C i t y o f S t . A n t h o n y Fu l l - T i m e E q u i v a l e n t E m p l o y e e s a s o f D e c e m b e r 3 1 , 166 CI T Y O F S T . A N T H O N Y , M I N N E S O T A OP E R A T I N G I N D I C A T O R S B Y F U N C T I O N / P R O G R A M Ta b l e 1 6 La s t T e n F i s c a l Y e a r s Fu n c t i o n / P r o g r a m 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 Po l i c e : * Mo v i n g v i o l a t i o n 1 , 5 6 0 2 , 2 4 6 2 , 3 5 7 2 , 1 3 7 2 , 0 0 8 2 , 3 0 5 1 , 8 4 8 1 , 8 5 1 2 , 0 6 8 2 , 0 1 7 2 , 2 1 3 No n - m o v i n g v i o l a t i o n s 5 0 1 6 3 2 6 2 7 4 9 4 3 5 1 3 9 7 2 1 0 2 0 0 3 9 6 3 2 1 1 9 7 DW I 5 6 1 1 4 2 6 6 1 5 9 4 9 4 4 3 9 3 4 3 9 2 3 Tr a f f i c a r r e s t s 5 1 5 7 5 0 8 3 1 8 1 5 7 7 0 6 0 0 6 7 3 5 7 8 6 7 9 6 3 3 6 6 1 Gr o s s a n d m i s d e m e a n o r a r r e s t s 1 8 1 1 6 2 1 5 8 2 0 3 1 9 3 1 2 9 1 4 5 1 6 4 2 4 4 1 3 0 7 7 Fe l o n y a r r e s t s 5 4 6 7 4 5 4 4 3 2 2 9 4 6 3 7 6 7 5 3 4 4 Wa r r a n t a r r e s t s 2 3 2 2 2 9 3 2 3 2 2 8 2 8 2 0 2 3 2 5 2 4 Fi r e : Em e r g e n c y r e s p o n s e s 1 , 0 4 3 9 8 0 9 7 6 1 , 0 5 5 9 9 6 1 , 2 0 3 1 , 2 2 1 1 , 2 6 7 1 , 4 0 9 1 , 3 6 3 1 , 4 2 5 Me d i c a l r e s p o n s e s 6 4 6 7 0 4 6 9 6 7 6 8 7 1 8 8 9 5 8 9 4 9 3 3 1 , 0 1 6 1 , 0 1 2 1 , 0 6 2 Fi r e s 4 7 2 8 4 0 3 9 3 2 3 4 3 5 4 0 2 6 2 6 2 6 In s p e c t i o n s N / A 1 9 7 7 8 8 1 9 2 9 7 1 2 1 1 1 6 8 8 2 5 6 2 3 8 Bu i l d i n g i n s p e c t i o n : Pe r m i t s i s s u e d 3 4 6 2 9 2 2 5 5 2 6 2 2 8 3 3 1 5 3 3 6 2 7 2 3 0 3 2 8 8 5 3 3 Ot h e r p u b l i c w o r k s : St r e e t r e c o n s t r u c t i o n / r e s u r f a c i n g ( m i l e s ) 1 1 22 1 1 2 1 1 1 2 Po t h o l e s f i l l e d ( t o n s ) 7 5 3 5 2 0 8 0 2 2 1 0 0 8 4 3 9 3 4 6 6 Wa t e r : Ne w c o n n e c t i o n s - 1 4 1 6 1 0 - 7 1 3 9 1 2 2 2 8 7 Wa t e r m a i n s b r e a k s 1 0 3 3 2 8 9 1 1 1 0 1 0 7 8 8 Av e r a g e d a i l y c o n s u m p t i o n ( t h o u s a n d s o f g a l l o n s ) 9 0 3 9 2 2 9 9 0 9 0 2 8 8 5 8 0 6 8 2 1 8 8 4 8 2 2 7 6 3 7 7 0 Pe a k d a i l y c o n s u m p t i o n ( t h o u s a n d s o f g a l l o n s ) 2 , 1 9 2 2 , 4 5 4 2 , 5 0 0 2 , 1 5 7 2 , 2 9 5 1 , 3 9 6 1 , 5 8 6 1 , 8 7 9 1 , 7 2 4 1 , 6 3 5 1 , 5 7 1 * P o l i c e s t a t i s t i c s a r e f o r S t A n t h o n y o n l y So u r c e : C i t y o f S t . A n t h o n y Fi s c a l Y e a r 167 CI T Y O F S T . A N T H O N Y , M I N N E S O T A CA P I T A L A S S E T S T A T I S T I C S B Y F U N C T I O N / P R O G R A M Ta b l e 1 7 La s t T e n F i s c a l Y e a r s Fu n c t i o n / P r o g r a m 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 Po l i c e : St a t i o n s 1 1 11 1 1 1 1 1 1 Fl e e t u n i t s 1 2 1 2 1 2 1 2 1 3 1 3 1 4 1 4 1 4 1 4 Fi r e s t a t i o n s 1 1 11 1 1 1 1 1 1 Fl e e t u n i t s 7 7 78 8 8 8 8 8 8 Ot h e r p u b l i c w o r k s : Ci t y S t r e e t s ( m i l e s ) 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 Si d e w a l k s ( m i l e s ) 9 . 5 9 . 6 9 . 6 1 0 . 2 1 1 . 1 1 1 . 1 1 1 . 1 1 1 . 1 1 1 . 1 1 1 . 1 Pa r k s a n d r e c r e a t i o n : Ac r e a g e 4 0 4 0 4 0 4 0 4 0 4 0 4 0 4 0 4 0 4 0 Pl a y g r o u n d s 4 4 44 4 4 4 4 4 4 Ba s e b a l l / s o f t b a l l d i a m o n d s 7 7 77 7 7 7 7 7 7 So c c e r / f o o t b a l l f i e l d s 2 2 22 2 2 2 2 2 2 Co m m u n i t y c e n t e r s 1 1 11 1 1 1 1 1 1 Sk a t e P a r k 1 1 11 1 1 1 1 1 1 Sp l a s h p a d s 1 1 12 2 2 2 2 2 2 Te n n i s c o u r t s 2 2 22 2 2 2 2 2 2 Se a s o n a l i c e r i n k s 3 3 33 3 3 3 3 3 3 Li q u o r o p e r a t i o n s : On / o f f s a l e l o c a t i o n s 2 2 22 2 2 2 2 2 2 Wa t e r : Wa t e r m a i n s ( m i l e s ) 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 Fi r e h y d r a n t s 2 8 3 2 8 7 2 8 7 2 8 7 2 8 7 2 8 7 2 8 7 2 8 7 2 8 7 2 8 7 St o r a g e c a p a c i t y ( t h o u s a n d s o f g a l l o n s ) 2 , 2 5 0 2 , 2 5 0 2 , 2 5 0 2 , 2 5 0 2 , 2 5 0 2 , 2 5 0 2 , 2 5 0 2 , 2 5 0 2 , 2 5 0 2 , 2 5 0 We l l s 3 3 33 3 3 3 3 3 3 Wa s t e w a t e r : Sa n i t a r y s e w e r s ( m i l e s ) 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 2 4 . 7 Li f t s t a t i o n s 2 2 22 2 2 2 2 2 2 St o r m w a t e r St o r m w a t e r r e u s e 0 0 01 1 1 1 1 1 1 St o r m w a t e r t r e a t m e n t s y s t e m s 0 0 00 0 0 0 1 1 2 St o r m w a t e r r e t e n t i o n p o n d s 5 5 55 5 5 5 5 6 6 St o r m s e w e r s ( m i l e s ) 1 5 . 0 1 5 . 0 1 5 . 0 1 5 . 0 1 5 . 0 1 5 . 0 1 5 . 0 1 5 . 0 1 5 . 0 1 5 . 0 Fi s c a l Y e a r 168