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HomeMy WebLinkAbout2016 CAFR COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF ST. ANTHONY, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2016 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 27 Statement of Activities Statement 2 28 Fund Financial Statements: Balance Sheet - Governmental Funds Statement 3 30 Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds Statement 4 32 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds Statement 5 34 Statement of Net Position - Proprietary Funds Statement 6 35 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds Statement 7 36 Statement of Cash Flows - Proprietary Funds Statement 8 37 Statement of Fiduciary Net Position - Fiduciary Fund Statement 9 38 Notes to Financial Statements 39 Required Supplementary Information: Budgetary Comparison Schedule - General Fund Statement 10 90 Schedule of Funding Progress - Other Post Employment Benefits Plan Statement 11 95 Schedule of Proportionate Share of Net Pension Liability - General Employees Retirement Fund Statement 12 96 Schedule of Pension Contributions - General Employees Retirement Fund Statement 13 97 Schedule of Proportionate Share of Net Pension Liability - Public Employees Police and Fire Fund Statement 14 98 Schedule of Pension Contributions - Public Employees Police and Fire Fund Statement 15 99 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 16 100 Schedule of Contributions - St. Anthony Fire Department Relief Association Statement 17 101 Notes to RSI 103 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 21 116 Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 22 120 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Debt Service Funds Statement 23 121 Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 24 124 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Capital Project Funds Statement 25 126 Special Revenue Funds: Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Community Center Fund Statement 26 128 Police Forfeiture Fund Statement 27 129 Recycling Fund Statement 28 130 HRA Fund Statement 29 131 Fire Education/Training Fund Statement 30 132 Statement of Changes in Assets and Liabilities - Agency Fund Statement 31 133 Supplementary Financial Information: Street Improvement Debt Service Fund: Balance Sheet Exhibit 1 136 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 2 138 HRA TIF Debt Service Fund: Balance Sheet Exhibit 3 140 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 4 141 HRA TIF Improvements Fund: Balance Sheet Exhibit 5 142 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 6 143 CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Page Reference No. Street Improvement Project Fund: Balance Sheet Exhibit 7 144 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 8 145 Water/Sewer/Water Plant Enterprise Fund: Schedule of Revenues, Expenses and Changes in Fund Net Position Exhibit 9 146 Financial Trends: Net Position by Component Table 1 148 Changes in Net Position Table 2 150 Fund Balances - Governmental Funds Table 3 154 Changes in Fund Balances - Governmental Funds Table 4 156 Revenue Capacity: Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 158 Direct and Overlapping Property Tax Rates Table 6 159 Principal Property Taxpayers Table 7 160 Property Tax Levies and Collections Table 8 161 Debt Capacity: Ratios of Outstanding Debt by Type Table 9 162 Direct and Overlapping Governmental Activities Debt Table 10 165 Legal Debt Margin Information Table 11 166 Pledged Revenue Coverage Table 12 168 Demographic and Economic: Demographic and Economic Statistics Table 13 172 Principal Employers Table 14 173 Operating Information: Full-Time Equivalent City Government Employees by Function/Program Table 15 174 Operating Indicators by Function/Program Table 16 176 Capital Asset Statistics by Function/Program Table 17 178 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 1, 2017 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, 2016. 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, 2016. 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 9,277. 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 (ISD) #282 (St. Anthony), which has a 2015/2016 enrollment of approximately 1,871, operates one elementary school, a middle school and senior high in the City. In addition, a private school, St. Charles Borromeo, offers K-8 grade education with enrollment of approximately 300 students. The City operates as a statutory Council-Manager form of government. Policy-making and legislative authority are vested in the City Council consisting of one elected mayor and four council members. The City Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the City Manager. The City Manager is responsible for carrying out the policies and ordinances of the City Council, overseeing the day- to-day operations of the City, and appointing the heads of the various departments. The Council is elected on a non-partisan basis. Council members serve four-year staggered terms, with two council members elected every two years. The Mayor is elected to serve a four-year term. The City of St. Anthony provides a full range of services including administrative services; police protection; fire suppression and prevention; construction of capital improvements; reconstruction and maintenance of city streets and other infrastructure; distribution of water; sanitary sewer collection; storm water drainage; parks and recreational activities; forestry maintenance; and recycling. The St. Anthony Firefighters’ Relief Association is a separate legal entity, and accordingly is excluded from this report. The St. Anthony Housing and Redevelopment Authority (HRA), an entity legally separate from the City, is governed by a board which includes the City Council. Its sole purpose is to promote economic development within the City of St. Anthony. The HRA is a component unit of the City and its financial transactions have been included in these financial statements as a blended component unit. Additional information on both of these legally separate entities can be found in Note 1(A) & 7(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 15th. The City Council is required to hold public hearings on the proposed budget and to adopt a final budget by December 31, the close of the City of St. Anthony’s fiscal year. The appropriated budget is prepared for the General Fund by function (e.g., public safety), department (e.g., police), and object code (e.g., salaries). Transfers of appropriations between departments require the approval of the City Council. Budget-to-actual comparisons are provided on Statement 10 as required supplementary information to the basic financial statements for the governmental funds. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of St. Anthony operates. 4 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. 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 and Building Improvement levies, 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 2016 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. Hennepin County Recycling Grant. F. Ramsey County Recycling Grant. G. United States Army Funding of water treatment plant expansion H. Metropolitan Council Inflow and Infiltration Grant I. Hennepin County Pollinator Pathway Grant Partnerships: The City partners with local businesses, civic organizations, School District 282, Community Services 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, 2016 7   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, 2016, 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, 2016, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited the City of St. Anthony, Minnesota’s 2015 financial statements, and we expressed an unmodified audit opinion on the respective financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information in our report dated June 9, 2016. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2015 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, the Schedules of Pension Contributions, and the Schedule of Changes in the Net Pension Liability and Related Ratios, on pages 15-24 and 90-103, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 12 Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of St. Anthony, Minnesota’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules, supplementary financial information, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules and the supplementary financial information are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules and the supplementary financial information are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 1, 2017, 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 1, 2017 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, 2016. 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 $35,402,281 (net position).  The City’s total net position increased by $11,218,336 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 $20,844,111, an increase of $13,293,951 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 $2,204,185 or 33% of total General Fund Budget expenditures.  The City of St. Anthony’s total bonded debt increased by $165,000 (1%) during the current fiscal year. The key factors in this increase were: 1) principal retirement of $2,735,000; 2) issuance of the 2016A $1,455,000 G.O. Improvement bonds and 2016B $1,445,000 G.O. Tax Abatement bonds. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of St. Anthony, Minnesota’s basic financial statements. The City of St. Anthony, Minnesota’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of St. Anthony, Minnesota’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the City of St. Anthony, Minnesota’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of St. Anthony, Minnesota is improving or deteriorating. 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). 15 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. 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 18 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, Street Improvement Projects and Public Utilities Infrastructure, all of which are considered to be major funds. Data from the other 18 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. 16 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. 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 $35,402,281 at the close of the most recent fiscal year. 17 City of St. Anthony, Minnesota’s Net Position Governmental Activities Business-Type Activities Totals 2016 2015 2016 2015 2016 2015 Current and other assets $24,966,779 $10,650,903 $3,802,270 $6,591,829 $28,769,049 $17,242,732 Capital assets 35,456,075 34,662,848 15,218,139 13,394,598 50,674,214 48,057,446 Total assets $60,422,854 $45,313,751 $19,020,409 $19,986,427 $79,443,263 $65,300,178 Total deferred outflows of resources $9,856,765 $1,080,208 $0 $0 $9,856,765 $1,080,208 Long term liabilities outstanding $44,445,048 $35,227,963 $1,206,582 $1,329,496 $45,651,630 $36,557,459 Other liabilities 5,894,888 4,013,993 630,878 864,088 6,525,766 4,878,081 Total liabilities $50,339,936 $39,241,956 $1,837,460 $2,193,584 $52,177,396 $41,435,540 Total deferred inflows of resources $1,720,351 $760,901 $0 $0 $1,720,351 $760,901 Net position: Invested in capital assets net of related debt $10,024,670 $10,604,121 $14,011,168 $12,143,158 $24,035,838 $22,747,279 Restricted 6,308,547 6,178,866 - - 6,308,547 6,178,866 Unrestricted 1,886,115 (10,391,885) 3,171,781 5,649,685 5,057,896 (4,742,200) Total net position $18,219,332 $6,391,102 $17,182,949 $17,792,843 $35,402,281 $24,183,945 The City’s net position increased by $11,218,336 in 2016. The increase was primarily due to the United States Army settlement proceeds of $10,565,371. City of St. Anthony, Minnesota’s Changes in Net Position Governmental Activities Business-Type Activities Totals 2016 2015 2016 2015 2016 2015 Revenues: Program revenue: Charges for services $2,212,526 $2,414,912 $7,954,087 $7,793,551 $10,166,613 $10,208,463 Operating grants and contributions 10,969,360 499,126 130,932 - 11,100,292 499,126 Capital grants and contributions 1,643,911 1,367,745 1,166,747 - 2,810,658 1,367,745 General revenue: Property taxes 6,160,156 5,893,900 - - 6,160,156 5,893,900 Other taxes 1,455,090 1,121,627 - - 1,455,090 1,121,627 Grants and contributions not restricted to specific programs 530,110 516,015 - - 530,110 516,015 Other 1,468,922 326,589 95,902 175,071 1,564,824 501,660 Total revenues 24,440,075 12,139,914 9,347,668 7,968,622 33,787,743 20,108,536 Expenses: General government 1,319,451 1,342,360 - - 1,319,451 1,342,360 Public safety 7,053,595 4,757,637 - - 7,053,595 4,757,637 Public works 4,134,783 2,741,411 - - 4,134,783 2,741,411 Parks and recreation 472,436 592,892 - - 472,436 592,892 Housing and redevelopment 793,834 596,444 - - 793,834 596,444 Interest on long-term debt 794,584 845,856 - - 794,584 845,856 Liquor - - 5,676,892 5,728,876 5,676,892 5,728,876 Water - - 1,083,240 869,446 1,083,240 869,446 Water filtration and purification - - - 185,964 - 185,964 Sewer - - 1,048,937 - 1,048,937 - Stormwater - - 191,655 1,051,261 191,655 1,051,261 Total expenses 14,568,683 10,876,600 8,000,724 7,835,547 22,569,407 18,712,147 Excess before transfers 9,871,392 1,263,314 1,346,944 133,075 11,218,336 1,396,389 Transfers 1,956,838 (6,053,216) (1,956,838) 6,053,216 - - Increase (decrease) in net position 11,828,230 (4,789,902) (609,894) 6,186,291 11,218,336 1,396,389 Net position - January, as previously reported 6,391,102 15,524,257 17,792,843 11,606,552 24,183,945 27,130,809 Prior period adjustment - (4,343,253) - - - (4,343,253) Net position - January, as restated 6,391,102 11,181,004 17,792,843 11,606,552 24,183,945 22,787,556 Net position - December 31 $18,219,332 $6,391,102 $17,182,949 $17,792,843 $35,402,281 $24,183,945 18 Governmental Activities. Governmental activities increased the City of St. Anthony’s net position by $11,828,230 compared to prior year decrease of $4,789,902. The key element for this change relates to the City receiving $10,565,371 from the United States Army for the expansion of the water treatment facility and other related costs. Additionally, increases in Governmental Activities expenses, for the most part, closely paralleled the combining factors of inflation and growth in the demand for services. 19 Business-type activities. Business-type activities decreased net position by $609,894. The key factor for the decrease was closing and distribution of assets of the Water Plant Fund. 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 $20,844,111, an increase of $13,293,951 in comparison with the prior year amounts. The ending fund balance by GASB 54 designation is as follows: Nonspendable $172,670 Restricted 6,907,253 Committed 105,503 Assigned 13,148,229 Unassigned 510,456 Total $20,844,111 20 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 $2,204,185, while total fund balance reached $2,319,667. 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 30% of total General Fund expenditures and total fund balance represents 32% of that same amount. During the current fiscal year, the fund balance in the General Fund decreased by $126,345. The Street Improvement Debt Service Fund increased by $328,598 as revenue exceeded expenses by $112,860 along with other financing sources of $215,738. The HRA TIF Improvement Fund increased by $134,134, substantially due to greater Tax Increment revenues. The Street Improvement Project Funds increased by $1,398,195. This increase includes $1,094,828 in reimbursement in construction costs for a street shared with another city. In addition overall street construction costs decrease by $303,390 compared to 2015. Non-major Special Revenue Funds increased by $30,488 resulting in an ending balance of $107,528, substantially due to reduced Community Center operating expenditures of $20,369 and an overall increase in special funds revenue of $8,883. Non-major Debt Service Funds had a total fund balance of $905,961, $906,411 of which is restricted for the payment of debt service. The net increase in fund balance during the current year in the non-major debt service funds was $35,866, substantially due to revenues being greater than debt service expenditures by that amount. Non-major Capital Project Funds had a total fund balance of $1,945,769, an increase of $1,392,859, substantially due to $1,053,004 in Municipal State Aid revenue in 2016. 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 $17,320,726. The total net position for each fund was: Liquor – $2,128,598; Water and Sewer – $8,026,604; Stormwater Utility - $7,165,524. 21 General Fund Budgetary Highlights Variances from actual to budget can be briefly summarized as follows:  Licenses and permits were $81,528 greater than budget primarily due to construction related permits being $72,046 greater than budget due to a high level of activity.  General property taxes were $6,537 less than budget due to delinquent tax and excess tax increment collections being less than budgeted offset by greater collections in current taxes.  Charges for services were less than budget by $67,670 mainly 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 $226,091 greater than budget due to: dividends distributed by the League of Minnesota Insurance Trust for Property and Casualty insurance were $41,430 greater than budget for 2016; $36,179 in unbudgeted insurance proceeds were received in 2016 and $135,331 in settlement proceeds from the United States Army for staff labor costs.  Planning and Zoning other services and charges were greater than budget by $50,936 due to costs associated in preparing the city’s comprehensive plan update.  Public Works was $160,935 less than budget due to: contracted gasoline price per gallon being less than budgeted; mild winter conditions resulted in savings on road chemicals and sand; street repair and maintenance costs were less than budgeted and staff turnover created savings to budget for 2016.  Police protection was $598,720 more than budget due to the result of changes in benefit elections; personnel succession costs and the City’s response costs.  Protective Inspections – other services and charges was $34,729 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, 2016 amounts to $50,674,214 (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 5.45%. Major capital asset events during the current fiscal year included the following:  The annual street reconstruction and infrastructure improvement projects are reflected in the Construction in progress along with the highway safety improvement project, the Mirror Lake storm water project and the construction of an addition to the water plant for the advanced oxidation treatment process. 22 City of St. Anthony, Minnesota’s Capital Assets Governmental Activities Business-Type Activities Totals 2016 2015 2016 2015 2016 2015 Land $1,662,883 $1,662,883 $2,089,954 $2,089,954 $3,752,837 $3,752,837 Land improvement 555,181 555,181 - - 555,181 555,181 Buildings and structures 10,002,287 9,966,796 4,118,781 3,883,283 14,121,068 13,850,079 Furniture and fixtures 4,156,947 3,994,838 1,563,898 1,726,693 5,720,845 5,721,531 Software intangibles 6,823 6,823 26,022 26,022 32,845 32,845 Infrastructure/streets 35,167,341 33,806,042 13,000,946 10,261,912 48,168,287 44,067,954 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 (20,798,119) (18,924,558) (8,073,528) (7,574,877) (28,871,647) (26,499,435) Construction in progress 4,274,263 3,166,374 238,919 728,464 4,513,182 3,894,838 Total $35,456,075 $34,662,848 $15,218,139 $13,394,598 $50,674,214 $48,057,446 Additional information on the City of St. Anthony, Minnesota’s capital assets can be found in Note 5. Long-term debt. At the end of the current fiscal year, the City of St. Anthony, Minnesota had total bonded debt outstanding of $32,775,000. Of this amount, $24,225,000 comprises debt backed by special assessments and the full faith and credit of the City, $7,450,000 is backed by tax increments and $1,100,000 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 $813,439, net pension liability of $14,584,653, and OPEB liability of $664,590. City of St. Anthony, Minnesota’s Outstanding Debt General Obligation and Revenue Bonds Governmental Activities Business-Type Activities Totals 2016 2015 2016 2015 2016 2015 General obligation bonds $24,225,000 $23,530,000 $ - $ - $24,225,000 $23,530,000 G.O. revenue bonds - - 1,100,000 1,215,000 1,100,000 1,215,000 G.O. tax increment bonds 7,450,000 7,865,000 - - 7,450,000 7,865,000 Issuance premiums (discounts) 620,404 618,259 31,932 36,440 652,336 654,699 Total $32,295,404 $32,013,259 $1,131,932 $1,251,440 $33,427,336 $33,264,699 The City of St. Anthony’s total bonded debt increased $165,000 (.51%) during the current fiscal year. The key factors in this increase were: 1) principal retirement of $2,735,000; 2) issuance of the 2016A $1,455,000 G.O. Improvement bonds and 2016B $1,445,000 G.O. Tax Abatement bonds. 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 $24,651,217, which is in excess of the City of St. Anthony, Minnesota’s $3,995,000 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. 23 Economic Factors and Next Year’s Budgets and Bond Rating comments  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 2017 fiscal year. Requests for Information This financial report is designed to provide a general overview of the City of St. Anthony, Minnesota’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, City of St. Anthony, Minnesota, 3301 Silver Lake Road, St. Anthony, Minnesota, 55418. 24 BASIC FINANCIAL STATEMENTS 25 - This page intentionally left blank - 26 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF NET POSITION Statement 1 December 31, 2016 With Comparative Totals For December 31, 2015 Governmental Business-Type Activities Activities 2016 2015 Assets: Cash and investments $20,937,376 $2,355,300 $23,292,676 $12,544,519 Accrued interest 26,021 - 26,021 25,813 Due from other governmental units 1,511,625 176,923 1,688,548 839,752 Internal balances 137,777 (137,777) - - Accounts receivable - net 41,265 518,473 559,738 593,322 Prepaid items 169,260 31,127 200,387 134,686 Property taxes receivable 213,984 689 214,673 167,578 Special assessments receivable 1,685,223 14,435 1,699,658 1,865,316 Funds held for others 43,765 - 43,765 71,941 Inventories - at cost 3,410 843,100 846,510 848,237 Capital assets - net: Nondepreciable 5,937,146 2,328,873 8,266,019 7,647,675 Depreciable 29,518,929 12,889,266 42,408,195 40,409,771 Net pension asset 197,073 - 197,073 151,568 Total assets 60,422,854 19,020,409 79,443,263 65,300,178 Deferred outflows of resources: Related to pensions 9,856,765 - 9,856,765 1,080,208 Liabilities: Accounts payable 987,821 203,152 1,190,973 890,170 Contracts payable 803,724 75,038 878,762 351,349 Deposits payable 2,000 66,795 68,795 73,555 Due to other governmental units 40,729 71,248 111,977 127,645 Salaries payable 64,884 24,752 89,636 64,688 Accrued interest payable 338,067 9,167 347,234 306,875 Compensated absences payable: Due within one year 208,086 51,218 259,304 260,081 Due in more than one year 444,852 109,283 554,135 570,398 Bonds and notes payable (net of unamortized premiums and discounts): Due within one year 3,449,577 129,508 3,579,085 2,803,718 Due in more than one year 28,845,827 1,002,425 29,848,252 30,460,981 Other post employment benefits: Due in more than one year 569,716 94,874 664,590 601,108 Net pension liability: Due in more than one year 14,584,653 - 14,584,653 4,924,972 Total liabilities 50,339,936 1,837,460 52,177,396 41,435,540 Deferred inflows of resources: Related to pensions 1,720,351 - 1,720,351 760,901 Net position: Net investments in capital assets 10,024,670 14,011,168 24,035,838 22,747,279 Restricted for: Debt service 6,282,913 - 6,282,913 6,147,172 Redevelopment activity - - - 12,411 Public safety 25,634 - 25,634 19,283 Unrestricted 1,886,115 3,171,781 5,057,896 (4,742,200) Total net position $18,219,332 $17,182,949 $35,402,281 $24,183,945 Total Primary Government The accompanying notes are an integral part of these financial statements. 27 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF ACTIVITIES For The Year Ended December 31, 2016 With Comparative Totals For The Year Ended December 31, 2015 Program Revenues Charges For Functions/Programs Expenses Services Primary government: Governmental activities: General government $1,319,451 $391,892 Public safety 7,053,595 1,404,923 Public works 4,134,783 175,539 Parks and recreation 472,436 240,172 Housing and redevelopment 793,834 - Interest on long-term debt 794,584 - Total governmental activities 14,568,683 2,212,526 Business-type activities: Liquor 5,676,892 5,822,783 Water 1,083,240 925,577 Water filtration and purification - - Sewer 1,048,937 1,012,979 Stormwater 191,655 192,748 Total business-type activities 8,000,724 7,954,087 Total primary government $22,569,407 $10,166,613 The accompanying notes are an integral part of these financial statements. 28 Statement 2 Operating Capital Grants and Grants and Governmental Business-Type Contributions Contributions Activities Activities 2016 2015 $182,919 $ - ($744,640) $ - ($744,640) ($914,036) 342,663 - (5,306,009) - (5,306,009) (3,026,820) 10,443,778 1,643,911 8,128,445 - 8,128,445 (853,373) - - (232,264) - (232,264) (358,288) - - (793,834) - (793,834) (596,444) - - (794,584) - (794,584) (845,856) 10,969,360 1,643,911 257,114 0 257,114 (6,594,817) - - - 145,891 145,891 165,040 130,932 - - (26,731) (26,731) 30,966 - - - - - (140,309) - - - (35,958) (35,958) (97,693) - 1,166,747 - 1,167,840 1,167,840 - 130,932 1,166,747 0 1,251,042 1,251,042 (41,996) $11,100,292 $2,810,658 257,114 1,251,042 1,508,156 (6,636,813) General revenues: General property taxes 6,160,156 - 6,160,156 5,893,900 Tax increment taxes 1,455,090 - 1,455,090 1,121,627 Grants and contributions not restricted to specific programs 530,110 - 530,110 516,015 Unrestricted investment earnings 254,396 31,097 285,493 232,430 Gain on sale of capital assets 7,151 1,350 8,501 7,653 Other 1,207,375 63,455 1,270,830 261,577 Transfers 1,956,838 (1,956,838) - - Total general revenues and transfers 11,571,116 (1,860,936) 9,710,180 8,033,202 Change in net position 11,828,230 (609,894) 11,218,336 1,396,389 Net position - January 1, as previously reported 6,391,102 17,792,843 24,183,945 27,130,809 Prior period adjustment - - - (4,343,253) Net position - January 1, as restated 6,391,102 17,792,843 24,183,945 22,787,556 Net position - December 31 $18,219,332 $17,182,949 $35,402,281 $24,183,945 Program Revenues Total Primary Government Changes in Net Position Net (Expense) Revenue and The accompanying notes are an integral part of these financial statements. 29 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2016 With Comparative Totals For December 31, 2015 General Fund Street Improvement Debt Service Fund HRA TIF Debt Service Assets Cash and investments $2,089,295 $4,011,236 $10,496 Accrued interest 26,021 - - Due from other governmental units 60,530 - - Interfund receivable 169,200 Interfund loan receivable - - - Accounts receivable - net 29,990 - - Prepaid items 112,072 - - Property taxes receivable: Delinquent 54,678 25,083 - Due from county 35,462 13,802 - Special assessments receivable 4,708 1,656,298 - Funds held by others - - - Inventories 3,410 - - Total assets $2,585,366 $5,706,419 $10,496 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $100,489 $9,940 $ - Contracts payable - - - Deposits payable 2,000 - - Interfund payable - - - Interfund loan payable - - - Due to other governmental units 40,715 - - Salaries payable 63,108 - - Total liabilities 206,312 9,940 0 Deferred inflows of resources: Unavailable revenue 59,387 1,678,770 - Total deferred inflows of resources 59,387 1,678,770 0 Fund balance (deficit): Nonspendable 115,482 - - Restricted - 4,017,709 10,496 Committed - - - Assigned - - - Unassigned 2,204,185 - - Total fund balance (deficit) 2,319,667 4,017,709 10,496 Total liabilities, deferred inflows of resources, and fund balance (deficit) $2,585,366 $5,706,419 $10,496 The accompanying notes are an integral part of these financial statements. 30 Statement 3 HRA TIF Improvements Street Improvement Project Fund Public Utilities Infrastructure Other Governmental Funds Intra-Activity Eliminations 2016 2015 $1,849,156 $1,232,987 $9,619,292 $2,057,762 $ - $20,870,224 $8,764,989 - - - - - 26,021 25,813 - 392,228 4,800 1,054,067 - 1,511,625 201,698 (169,200) - - - - 1,004,286 - (1,004,286) - 149,874 - - 11,275 - - 41,265 52,818 - 20,000 - 37,188 - 169,260 106,697 48,470 - - 10,664 - 138,895 160,961 20,134 - - 5,691 - 75,089 6,437 - - - 24,217 - 1,685,223 1,865,316 - - - 43,765 - 43,765 71,941 - - - - - 3,410 2,872 $1,917,760 $1,645,215 $10,639,653 $3,233,354 ($1,173,486) $24,564,777 $11,409,416 $603,724 $77,500 $78,301 $117,867 $ - $987,821 $561,896 - 347,353 456,371 - - 803,724 153,565 - - - - - 2,000 2,000 - 94,602 - 74,598 (169,200) - - 959,326 - - 44,960 (1,004,286) - 1,009,906 - - - 14 - 40,729 58,907 - - - 1,776 - 64,884 47,332 1,563,050 519,455 534,672 239,215 (1,173,486) 1,899,158 1,833,606 48,470 - - 34,881 - 1,821,508 2,025,650 48,470 0 0 34,881 0 1,821,508 2,025,650 - 20,000 - 37,188 - 172,670 109,569 1,947,003 - - 932,045 - 6,907,253 6,491,789 - - - 105,503 - 105,503 94,107 - 1,105,760 10,104,981 1,937,488 - 13,148,229 578,258 (1,640,763) - - (52,966) - 510,456 276,437 306,240 1,125,760 10,104,981 2,959,258 0 20,844,111 7,550,160 $1,917,760 $1,645,215 $10,639,653 $3,233,354 ($1,173,486) $24,564,777 $11,409,416 Fund balance reported above $20,844,111 $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.35,456,075 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.1,821,508 2,025,650 Net pension asset related to the Saint Anthony Fire Department Relief Association. 197,073 151,568 Deferred outflows of resources related to the Saint Anthony Fire Department Relief Association.34,902 49,346 Deferred inflows of resources related to the Saint Anthony Fire Department Relief Association.(32,333) - Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds.(33,203,187) (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.(6,898,817) (5,223,618) Net position of governmental activities $18,219,332 $6,391,102 Total Governmental Funds The accompanying notes are an integral part of these financial statements. 31 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For The Year Ended December 31, 2016 With Comparative Totals For The Year Ended December 31, 2015 General Fund Street Improvement Debt Service Fund HRA TIF Debt Service Revenues: General property taxes $3,536,079 $1,800,740 $ - Tax increment collections - - - Licenses, fees and permits 304,079 - - Intergovernmental 969,498 - - Special assessments - 534,947 - Charges for services 1,568,487 - - Cable franchise fees 113,672 - - Fines and forfeits 83,719 - - Investment income 26,856 35,921 197 Contributions and donations 1,620 - - Refunds and reimbursement - - - Army settlement 150,977 - - Miscellaneous 96,408 - - Total revenues 6,851,395 2,371,608 197 Expenditures: Current: General government 963,469 - - Public safety 5,157,188 - - Public works 835,585 - - Parks and recreation 248,583 - - Nondepartmental 38,421 - - Housing and redevelopment - - - Capital outlay: General government - - - Public safety - - - Public works - - - Debt service: Principal - 1,765,000 415,000 Interest - 471,137 156,058 Paying agent fees - 13,260 584 Professional service - 8,901 7,438 Issuance costs - 450 - Construction/acquisition costs - - - Developer incentives - - - Total expenditures 7,243,246 2,258,748 579,080 Revenues over (under) expenditures (391,851) 112,860 (578,883) Other financing sources (uses): Bonds issued - 20,738 - Refunding bonds issued - - - Premium on debt issued - - - Payment to refunded bond escrow agent - - - Sale of capital assets - - - Transfers in 433,606 195,000 574,058 Transfers out (168,100) - - Total other financing sources (uses) 265,506 215,738 574,058 Net change in fund balance (126,345) 328,598 (4,825) Fund balance (deficit) - January 1 2,446,012 3,689,111 15,321 Fund balance (deficit) - December 31 $2,319,667 $4,017,709 $10,496 The accompanying notes are an integral part of these financial statements. 32 Statement 4 HRA TIF Improvements Street Improvement Project Fund Public Utilities Infrastructure Other Governmental Funds Intra-Activity Eliminations 2016 2015 $ - $ - $ - $824,217 $ - $6,161,036 $5,897,070 1,476,275 - - - - 1,476,275 1,106,582 - - - - - 304,079 296,465 - 202,435 4,800 1,106,283 - 2,283,016 1,644,481 - 31,125 - 4,477 - 570,549 621,931 - - - 132,759 - 1,701,246 1,879,520 - - - - - 113,672 108,104 - - - 9,810 - 93,529 130,823 71,439 5,855 87,373 25,189 - 252,830 145,447 - - - 2,500 - 4,120 15,903 - 1,094,828 8,720 99 - 1,103,647 127,250 - - 10,205,890 77,572 - 10,434,439 - - - - 3,200 - 99,608 45,663 1,547,714 1,334,243 10,306,783 2,186,106 0 24,598,046 12,019,239 15,812 - 17,826 69,129 - 1,066,236 948,089 - - - 7,082 - 5,164,270 4,352,048 - - 32,428 183,734 - 1,051,747 1,043,551 - - - 161,396 - 409,979 446,924 - - - - - 38,421 40,139 1,196 - - 155,116 - 156,312 119,294 - - - 8,201 - 8,201 168,176 - - - 256,053 - 256,053 150,645 - - 95,915 38,675 - 134,590 67,831 - - - 440,000 - 2,620,000 3,750,000 93,150 - - 100,262 - 820,607 1,020,262 - - - 949 - 14,793 10,386 - - - - - 16,339 16,971 - 79,844 - - - 80,294 142,682 101,725 2,804,951 1,961,194 - - 4,867,870 3,750,269 627,639 - - - - 627,639 475,886 839,522 2,884,795 2,107,363 1,420,597 0 17,333,351 16,503,153 708,192 (1,550,552) 8,199,420 765,509 0 7,264,695 (4,483,914) - 2,879,262 - - - 2,900,000 2,580,000 - - - - - - 4,310,000 - 69,485 - - - 69,485 188,693 - - - - - - (4,332,935) - - - 15,186 - 15,186 25,860 - - 1,905,561 895,728 (959,368) 3,044,585 168,612 (574,058) - - (217,210) 959,368 - - (574,058) 2,948,747 1,905,561 693,704 0 6,029,256 2,940,230 134,134 1,398,195 10,104,981 1,459,213 0 13,293,951 (1,543,684) 172,106 (272,435) - 1,500,045 - 7,550,160 9,093,844 $306,240 $1,125,760 $10,104,981 $2,959,258 $0 $20,844,111 $7,550,160 Total Governmental Funds The accompanying notes are an integral part of these financial statements. 33 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, 2016 With Comparative Amounts For The Year Ended December 31, 2015 2016 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)$13,293,951 ($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.1,986,872 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:(19,598) (50,430) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.(204,142) 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.(404,358) 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.26,023 174,406 Transfer out of governmental capital assets contributed to Enterprise Funds.(1,174,047) (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.(1,675,199) (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 $57,174 Pension expense (58,446) (1,272) (4,473) Change in net position of governmental activities (statement 2)$11,828,230 ($4,789,902) The accompanying notes are an integral part of these financial statements. 34 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF NET POSITION Statement 6 PROPRIETARY FUNDS December 31, 2016 With Comparatvie Totals For Enterprise Fund For December 31, 2015 Governmental Activities - Liquor Water/Sewer/ Water Plant Stormwater Utility Internal Service Fund Assets:2016 2015 Current assets: Cash and cash equivalents $439,441 $1,830,307 $85,552 $2,355,300 $3,696,648 $67,152 Interfund loan receivable - current portion - - - - 5,620 - Receivables: Accounts 2,436 530,472 - 532,908 540,504 - Due from other governments - 689 176,923 177,612 638,234 - Prepaid items 15,106 16,021 - 31,127 27,989 - Inventories - at cost 843,100 - - 843,100 845,365 - Total current assets 1,300,083 2,377,489 262,475 3,940,047 5,754,360 67,152 Noncurrent assets: Interfund loan receivable - noncurrent portion - - - - 1,004,286 - Capital assets: Land - 5,653 2,084,301 2,089,954 2,089,954 - Construction in progress - - 238,919 238,919 728,464 - Buildings and structures 1,875,328 2,007,955 - 3,883,283 3,883,283 - Furniture, fixtures and equipment 418,325 1,381,071 - 1,799,396 1,726,693 - Distribution and collection system - 10,001,458 5,252,635 15,254,093 12,515,059 - Software intangibles 26,022 - - 26,022 26,022 - Total capital assets 2,319,675 13,396,137 7,575,855 23,291,667 20,969,475 0 Less: Allowance for depreciation (1,177,692) (6,345,870) (549,966) (8,073,528) (7,574,877) - Net capital assets 1,141,983 7,050,267 7,025,889 15,218,139 13,394,598 0 Total noncurrent assets 1,141,983 7,050,267 7,025,889 15,218,139 14,398,884 0 Total assets 2,442,066 9,427,756 7,288,364 19,158,186 20,153,244 67,152 Deferred outflows of resources: Related to pensions - - - - - 9,821,863 Liabilities: Current liabilities: Accounts payable 122,630 32,720 47,802 203,152 328,274 - Contracts payable - - 75,038 75,038 197,784 - Interfund payable - - - - 149,874 - Due to other governmental units 65,063 6,185 - 71,248 68,738 - Salaries payable 14,393 10,359 - 24,752 17,356 - Accrued interest payable - 9,167 - 9,167 10,125 - Refundable deposits - 66,795 - 66,795 71,555 - Compensated absences payable - current portion 19,963 31,255 - 51,218 50,748 208,086 Bonds and notes payable - current portion - 129,508 - 129,508 119,508 - Total current liabilities 222,049 285,989 122,840 630,878 1,013,962 208,086 Noncurrent liabilities: Compensated absences payable - noncurrent portion 42,596 66,687 - 109,283 111,299 444,852 Bonds and notes payable - noncurrent portion - 1,002,425 - 1,002,425 1,131,932 - Other post employement benefits 48,823 46,051 - 94,874 86,265 - Net pension liability - - - - - 14,584,653 Total noncurrent liabilities 91,419 1,115,163 0 1,206,582 1,329,496 15,029,505 Total liabilities 313,468 1,401,152 122,840 1,837,460 2,343,458 15,237,591 Deferred inflows of resources: Related to pensions - - - - - 1,688,018 Net position: Net investments in capital assets 1,141,983 5,918,334 6,950,851 14,011,168 12,143,158 - Unrestricted 986,615 2,108,270 214,673 3,309,558 5,666,628 (7,036,594) Total net position $2,128,598 $8,026,604 $7,165,524 $17,320,726 $17,809,786 ($7,036,594) Net position reported above $17,320,726 $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.(137,777) (16,943) Net position of business-type activites (Statement 1)$17,182,949 $17,792,843 Business-Type Activities Enterprise Funds Totals The accompanying notes are an integral part of these financial statements. 35 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, 2016 With Comparatvie Totals For Enterprise Funds For The Year Ended December 31, 2015 Governmental Activities - Liquor Water/Sewer/ Water Plant Stormwater Utility Internal Service Fund 2016 2015 Sales $5,822,783 $ - $ - $5,822,783 $5,893,916 $ - Cost of sales (4,468,066) - - (4,468,066) (4,572,858) - Gross profit 1,354,717 0 0 1,354,717 1,321,058 0 Operating revenues: Customer billings - 1,923,256 192,748 2,116,004 1,844,850 - Connection charges - 15,300 - 15,300 9,130 - Charges for services - - - - - 608,134 Total operating revenues 0 1,938,556 192,748 2,131,304 1,853,980 608,134 Total gross profit and operating revenues 1,354,717 1,938,556 192,748 3,486,021 3,175,038 608,134 Operating expenses: Personal services 717,308 812,927 - 1,530,235 1,480,798 2,529,487 Supplies 308,200 74,742 14,758 397,700 380,961 - Contracted services 44,619 98,866 46,233 189,718 197,728 - Treatment charges (MCES) - 576,237 - 576,237 593,381 - Other 12,181 155,646 - 167,827 188,135 - Depreciation 68,064 332,399 130,664 531,127 384,017 - Total operating expenses 1,150,372 2,050,817 191,655 3,392,844 3,225,020 2,529,487 Operating income (loss) 204,345 (112,261) 1,093 93,177 (49,982) (1,921,353) Nonoperating revenues (expenses): Investment income 5,973 23,907 1,217 31,097 86,407 1,566 Intergovernmental revenue - - - - - 37,454 Interest expense - (17,688) - (17,688) (19,984) - Fees and cost of issuance - (1,292) - (1,292) (742) - Refunds and reimbursements - 50 - 50 45,655 - Army settlement - 130,932 - 130,932 - - Gain on sale of assets - 1,350 - 1,350 - - Miscellaneous revenue 53,085 8,750 1,570 63,405 88,664 - Total nonoperating revenues (expenses) 59,058 146,009 2,787 207,854 200,000 39,020 Income (loss) before capital contributions and transfers 263,403 33,748 3,880 301,031 150,018 (1,882,333) Capital contributions and transfers: Capital contributions - 819,779 354,268 1,174,047 6,308,128 - Capital contributions - intergovernmental - - 1,166,747 1,166,747 - - Transfers in - - - - 179,701 86,300 Transfers out (249,049) (2,711,836) (170,000) (3,130,885) (434,613) - Total capital contributions and transfers (249,049) (1,892,057) 1,351,015 (790,091) 6,053,216 86,300 Change in net position 14,354 (1,858,309) 1,354,895 (489,060) 6,203,234 (1,796,033) Net position - January 1 2,114,244 9,884,913 5,810,629 17,809,786 11,606,552 (5,240,561) Net position - December 31 $2,128,598 $8,026,604 $7,165,524 $17,320,726 $17,809,786 ($7,036,594) Change in net position reported for business-type activities above ($489,060) $6,203,234 Adjustment for the net effect of the current year activity between the internal service fund and the enterprise funds. (120,834) (16,943) Change in net position of business-type activites (Statement 2) ($609,894) $6,186,291 Business-Type Activities Enterprise Funds Totals The accompanying notes are an integral part of these financial statements. 36 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF CASH FLOWS Statement 8 PROPRIETARY FUNDS For The Year Ended December 31, 2016 With Comparative Totals For Enterprise Funds For The Year Ended December 31, 2015 Governmental Activities - Liquor Water/Sewer/ Water Plant Stormwater Utility Internal Service Fund 2016 2015 Cash flows from operating activities: Receipts from customers and users $5,835,580 $1,933,355 $192,748 $7,961,683 $7,708,757 $ - Receipts from interfund charges for pension benefits - - - - - 608,134 Payment to suppliers (4,929,413) (920,150) (200,974) (6,050,537) (6,021,653) - Payment to employees (704,393) (811,383) - (1,515,776) (1,504,930) (749,184) Army settlement - 130,932 - 130,932 - - Miscellaneous revenue 53,085 53,946 417,046 524,077 88,484 - Net cash flows provided by (used in) operating activities 254,859 386,700 408,820 1,050,379 270,658 (141,050) Cash flows from noncapital financing activities: Transfer from other funds - - - - - 86,300 Transfer to General Fund (156,396) (200,000) - (356,396) (434,613) - Transfer to Capital Project Funds (92,653) (2,511,836) - (2,604,489) - - Transfer to Debt Service Funds - - (170,000) (170,000) - - Intergovernmental revenue - - - - - 37,454 Net cash flows provided by (used in) noncapital financing activities (249,049) (2,711,836) (170,000) (3,130,885) (434,613) 123,754 Cash flows from capital and related financing activities: Intergovernmental revenue - capital - - 1,166,747 1,166,747 - - Acquisiton of capital assets - (9,268) (1,171,358) (1,180,626) (215,987) - Proceeds from sale of capital assets - 1,350 - 1,350 - - Change in interfund loan receivable/payable - 1,009,906 (149,874) 860,032 5,620 - Interest received on interfund receivable - - - - 41,328 - Principal paid on debt - (115,000) - (115,000) (115,000) - Interest paid on debt - (24,442) - (24,442) (26,192) - Net cash flows provided by (used in) capital and related financing activities 0 862,546 (154,485) 708,061 (310,231)0 Cash flows from investing activities: Investment income 5,973 23,907 1,217 31,097 45,079 1,566 Net increase (decrease) in cash and cash equivalents 11,783 (1,438,683) 85,552 (1,341,348) (429,107) (15,730) Cash and cash equivalents - January 1 427,658 3,268,990 - 3,696,648 4,125,755 82,882 Cash and cash equivalents - December 31 $439,441 $1,830,307 $85,552 $2,355,300 $3,696,648 $67,152 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $204,345 ($112,261) $1,093 $93,177 ($49,982) ($1,921,353) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenue 53,085 53,946 417,046 524,077 88,484 - Army settlement - 130,932 - 130,932 - - Depreciation 68,064 332,399 130,664 531,127 384,017 - Changes in assets and liabilities: Decrease (increase) in receivables 12,797 (5,201) - 7,596 (39,135) - Decrease (increase) in prepaid items (3,878)740 - (3,138) (1,887) - Decrease (increase) in inventory 2,265 - - 2,265 24,237 - Decrease (increase) in deferred outflows of resources - - - - - (8,791,001) Increase (decrease) in payables (81,819) (13,855) (139,983) (235,657) (135,076) 9,644,187 Increase (decrease) in deferred inflows of resources - - - - - 927,117 Total adjustments 50,514 498,961 407,727 957,202 320,640 1,780,303 Net cash provided by operating activities $254,859 $386,700 $408,820 $1,050,379 $270,658 ($141,050) Noncash investing, capital and financing activities: Assets in the amount of $819,779 and $677,200 were contributed to the Water/Sewer/Water Plant Fund in 2016 and 2015, respectively. Stormwater assets in the amount of $354,268 and $5,630,928 were contributed to the Stormwater Utility Fund in 2016 and 2015, 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. 37 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF FIDUCIARY NET POSITION Statement 9 FIDUCIARY FUND -DEVELOPERS DEPOSIT December 31, 2016 With Comparative Totals For December 31, 2015 2016 2015 Assets: Cash and investments $15,036 ($4,122) Accounts receivable - net 3,456 4,122 Total assets $18,492 $0 Liabilities: Deposits payable $18,492 $ - The accompanying notes are an integral part of these financial statements. 38 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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. 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 39 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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. 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. 40 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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 Public Utilities Infrastructure Fund was established to account for costs associated with the City’s utilities infrastructure. 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/Sewer/Water Plant 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. 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, 41 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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. 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 42 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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 Mayor and council $79,043 $80,340 $1,297 Public relations/cable 42,596 42,703 107 Assessing 56,342 59,338 2,996 Planning and zoning 71,403 121,952 50,549 Police protection 3,330,491 3,929,211 598,720 Fire protection 1,012,316 1,029,340 17,024 Protective inspections 84,091 118,685 34,594 Nonmajor Funds: Special Revenue Funds: HRA fund 123,988 155,116 31,128 Fire education/training 2,824 3,322 498 The over expenditures were funded by available fund balance. 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 except for investments in external investment pools that meet the GASB 79 requirement, which are stated at amortized cost. Investment income is accrued at the balance sheet date. For purposes of the statement of cash flows, the City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the Proprietary Funds have original maturities of 90 days or less. Therefore, the entire balance in the Proprietary Funds is considered cash equivalents. 43 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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, 2016 are planned to be eliminated in 2017. Long-term interfund loans are classified as “interfund loan receivable/payable.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Uncollectible property taxes and special assessments are not material and have not been reported (see Note 1 H and I). Because utility bills are considered liens on property, no estimated uncollectible amounts are established. Uncollectible amounts are not material for other receivables and have not been reported. H. PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 7 and December 2 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible property taxes are not material and have not been reported. GOVERNMENTAL FUND FINANCIAL STATEMENTS The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and January are recognized as revenue for the current year. Taxes collected by the County by December 31 (remitted to the City the following January) and taxes and credits not received at year end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred inflow of resources because they are not available to finance current expenditures. I. SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same 44 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale. Proceeds of sales from tax forfeit properties are allocated first to the County’s costs of administering all tax forfeit properties. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. GOVERNMENTAL FUND FINANCIAL STATEMENTS Revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments that are collected by the County by December 31 (remitted to the City the following January) are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funds are completely offset by deferred inflow of resources. J. INVENTORIES GOVERNMENTAL FUNDS Inventories are valued at cost using the first-in/first-out (FIFO) method. The cost of such inventories are recorded as expenditures when consumed rather than when purchased. PROPRIETARY FUNDS Inventories of the Proprietary Funds are stated at weighted average cost, which approximates market, using the first-in, first-out (FIFO) method. K. PREPAID ITEMS Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as expenditures/expenses at the time of consumption. L. CAPITAL ASSETS Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) and intangible assets such as easements and computer software, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets 45 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition 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, 2016, 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 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 Employee Benefit 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. 46 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 N. LONG-TERM OBLIGATIONS In the government-wide financial statements and proprietary funds in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary funds statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium discount. In the governmental fund financial statements, governmental funds recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. O. FUND BALANCE CLASSIFICATIONS In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable - consists of amounts that are not in spendable form, such as prepaid items. Restricted - consists of amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Committed - consists of internally imposed constraints. These constraints are established by resolution of the City Council. Assigned - consists of internally imposed constraints. These constraints reflect the specific purpose for which it is the City’s intended use. These constraints are established by the City Council and/or management. Pursuant to City Council policy, the City’s Finance Director and/or City Manager are authorized to establish assignments of fund balance. Unassigned - is the residual classification for the general fund and also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, and then use unrestricted resources as they are needed. When committed, assigned or unassigned resources are available for use, it is the City’s policy to use resources in the following order: 1) committed, 2) assigned and 3) unassigned. P. INTERFUND TRANSACTIONS Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are reported as an interfund loan receivable or payable which offsets the movement of cash between funds. All other interfund transactions are reported as transfers. 47 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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, 2015, 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 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. 48 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 U. PENSION PLANS COST SHARING MULTIPLE – EMPLOYER PLANS 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. SINGLE EMPLOYER PLAN 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. V. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS 1. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET POSITION The governmental fund balance sheet includes a reconciliation between fund balance – total governmental funds and net position – governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that “long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds”. The details of this ($33,203,187) difference is as follows: Bonds payable ($31,675,000) Accrued interest payable (338,067) Unamortized bond premium (620,404) Other post-employment benefits (569,716) Net adjustment to reduce fund balance - total governmental funds to arrive at net position - governmental activities.($33,203,187) 49 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 2. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES AND THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES The governmental fund statement of revenues, expenditures and changes in fund balances includes a reconciliation between net changes in fund balances – total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that “governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.” The details of this $1,986,872 difference is as follows: Capital outlay $398,844 Construction/acquisition costs 4,867,870 Construction/acquisition costs not capitalized (1,321,371) Depreciation expense (1,958,471) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. $1,986,872 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 ($19,598) 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. ($19,598) Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. ($19,598) 50 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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 ($204,142) difference is as follows: Unavailable revenue - general property taxes: At December 31, 2015 ($91,306) At December 31, 2016 90,425 Unavailable revenue - tax increment taxes: At December 31, 2015 (69,656) At December 31, 2016 48,470 Unavailable revenue - special assessments: At December 31, 2015 (1,864,688) At December 31, 2016 1,682,613 Net adjustments to decrease net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. ($204,142) 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 ($404,358) difference is as follows: Debt issued or incurred: Issuance of general obligation bonds ($2,900,000) Premium on issued bonds (69,485) Principal repayments 2,620,000 Other post employment benefits (54,873) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. ($404,358) 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 $26,023 difference is as follows: Amortization of premiums, discounts $67,340 Accrued interest (41,317) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. $26,023 51 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 Note 2 DEPOSITS AND INVESTMENTS A. DEPOSITS In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral includes the following: a) United States government treasury bills, treasury note and treasury bonds; b) Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; c) General obligation securities of any state or local government with taxing powers which is rated “A” or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; d) General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; e) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc. or Standard & Poor’s Corporation; and f) Time deposits that are fully insured by any Federal agency. Custodial Credit Risk – Deposits: Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. State statutes require that insurance, surety bonds or collateral protect all City deposits. The market value of collateral pledged must equal 110% of deposits not covered by insurance or bonds. As of December 31, 2016, 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. 52 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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 eligible for purchase by the Federal Reserve System. 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. 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, 2016, 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 Mortgage Corporation AAA $345,110 $345,110 $ - $ - $ - REMIC NR 37 37 - - - Money market NR 1,229,106 1,229,106 - - - External investment pool - 4M Fund NR 8,545,954 8,545,954 - - - Local governments AA - AAA 839,700 169,856 669,844 - - Brokered certificates of deposit NR 7,340,533 3,745,453 3,595,080 - - Total $18,300,440 $14,035,516 $4,264,924 $0 $0 NR - Not Rated Total investments $18,300,440 Total deposits 5,001,972 Petty cash 5,300 Total cash and investments $23,307,712 Investment Maturities (in Years) Following is a reconciliation of the City’s cash and investment balances as of December 31, 2016: Cash and investments $23,292,676 Cash and investments - fiduciary fund 15,036 $23,307,712 The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The hierarchy has three levels. Level 1 investments are valued using inputs that are based on quoted prices in active markets for identical assets. Level 2 investments 53 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 are valued using inputs that are based on quoted prices for similar assets or inputs that are observable, either directly or indirectly. Level 3 investments are valued using inputs that are unobservable. The City has the following recurring fair value measurements as of December 31, 2016: Investment Type 12/31/2016 Level 1 Level 2 Level 3 Investments at fair value: Brokered Certificates of Deposit $7,340,533 $ - $7,340,533 $ - Municipal Securities 839,700 - 839,700 - Federal National Mortgage Association 37 - 37 - Federal Home Loan Mortgage Corporation 345,110 - 345,110 - Total/Subtotal 8,525,380 $ - $8,525,380 $ - Investments not categorized: External investment pool - 4M and 4M Plus Funds 8,545,954 Money market funds 1,229,106 Total $18,300,440 Fair Value Measurement Using The City’s external investment pool investment is with the 4M fund which is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. The 4M fund is an unrated pool and the fair value of the position in the pool is the same as the value of pool shares. The pool is managed to maintain a portfolio weighted average maturity of no greater than 60 days and seeks to maintain a constant net asset value (NAV) per share of $1. The pool measures their investments in accordance with Government Accounting Standards Board Statement No. 79, at amortized cost. The 4M Liquid Asset Fund has no redemption requirements. The 4M Plus Fund requires funds to be deposited for a minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period are subject to a penalty equal to 7 days interest on the amount withdrawn. 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. 54 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 Credit Risk – Credit risk is the risk that an issuer or other counterparty to an investment will be unable to fulfill its obligation to the holder of the investment. State law limits investments in commercial paper to those rated in the highest quality category by at least two nationally recognized rating agencies; in any security of the State of Minnesota or any of its municipalities which is rated “A” or better by a national bond rating service for general obligation and rated “AA” or better for a revenue obligation; a general obligation of the Minnesota Housing Finance Agency to those rated “A” or better by a national bond rating agency; mutual funds or money market funds whose investments are restricted to securities described in MS 118A.04. The City’s investment policy does not place further restrictions on investment options. Concentration of credit risk – Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government’s investment in a single issuer. The City places no limit on the amount the City may invest in any one issuer. 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, 2016 are as follows: Street Improvement HRA TIF Nonmajor General Debt Service Improvements Funds Total Special assessments receivable $ - $1,400,900 $ - $21,300 $1,422,200 Delinquent property taxes 32,500 14,900 - 6,300 53,700 Delinquent tax increment - - 39,300 - 39,300 $32,500 $1,415,800 $39,300 $27,600 $1,515,200 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 $54,678 $4,709 $ - $59,387 Street Improvement Debt Service 25,083 1,653,687 - 1,678,770 HRA TIF Improvements - - 48,470 48,470 Nonmajor Funds 10,664 24,217 - 34,881 Total unavailale revenue $90,425 $1,682,613 $48,470 $1,821,508 55 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 Note 5 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2016 was as follows: Beginning Ending Primary Government Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated: Land $1,662,883 $ - $ - $1,662,883 Construction in progress 3,166,374 4,867,583 (3,759,694) 4,274,263 Total capital assets, not being depreciated 4,829,257 4,867,583 (3,759,694) 5,937,146 Capital assets, being depreciated: Buildings and improvements 9,966,796 35,491 - 10,002,287 Land improvement 555,181 - - 555,181 Furniture, fixtures and equipment (including software)3,994,838 266,617 (104,508) 4,156,947 Streets 33,806,042 1,361,299 - 35,167,341 Storm sewers 428,469 - - 428,469 Intangible assets 6,823 - - 6,823 Total capital assets, being depreciated 48,758,149 1,663,407 (104,508) 50,317,048 Less accumulated depreciation/amortization for: Buildings and improvements 4,043,911 300,252 - 4,344,163 Land improvement 241,252 46,060 - 287,312 Furniture, fixtures and equipment 2,800,930 264,935 (84,910) 2,980,955 Streets 11,715,246 1,328,720 - 13,043,966 Storm sewers 121,854 17,139 - 138,993 Intangible assets 1,365 1,365 - 2,730 Total accumulated depreciation/amortization 18,924,558 1,958,471 (84,910) 20,798,119 Total capital assets being depreciated - net 29,833,591 (295,064) (19,598) 29,518,929 Governmental activities capital assets - net $34,662,848 $4,572,519 ($3,779,292) $35,456,075 56 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 Beginning Ending Primary Government Balance Increases Decrease Balance Business-type activities: Capital assets, not being depreciated: Land $2,089,954 $ - $ - $2,089,954 Construction in progress 728,464 1,171,357 (1,660,902) 238,919 Total capital assets, not being depreciated 2,818,418 1,171,357 (1,660,902) 2,328,873 Capital assets, being depreciated: Buildings and structures 3,883,283 - - 3,883,283 Furniture, fixtures and equipment 1,726,698 105,179 (32,481) 1,799,396 Software and intangibles 26,022 - - 26,022 Stormwater 2,253,147 - - 2,253,147 Distribution and collection system 10,261,912 2,739,034 - 13,000,946 Total capital assets, being depreciated 18,151,062 2,844,213 (32,481) 20,962,794 Less accumulated depreciation for: Buildings and structures 2,051,803 89,345 - 2,141,148 Furniture, fixtures and equipment 830,501 59,250 (32,481) 857,270 Software and intangibles 26,023 - - 26,023 Stormwater 419,303 130,664 - 549,967 Distribution and collection system 4,247,252 251,868 - 4,499,120 Total accumulated depreciation 7,574,882 531,127 (32,481) 8,073,528 Total capital assets being depreciated - net 10,576,180 2,313,086 0 12,889,266 Business-type activities capital assets - net $13,394,598 $3,484,443 ($1,660,902) $15,218,139 Depreciation/amortization expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $115,970 Public safety 189,813 Public works, including depreciation of general infrastructure assets 1,604,503 Parks and recreation 48,185 Total depreciation/amortization expense - governmental activities 1,958,471 Business-type activities: Liquor 68,064 Water/Sewer/Water Plant 332,399 Stormwater 130,664 Total depreciation/amortization expense - business-type activities 531,127 Total depreciation expense $2,489,598 57 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 CONSTRUCTION COMMITMENTS At December 31, 2016, 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 2016 Street Improvements $2,060,277 $103,074 Mirror Lake Dredging 856,950 781,912 $884,986 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, 2016. 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.  Tax abatement bonds were issued to finance a portion of park, sidewalk, and traffic signal improvements, 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. 58 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 GOVERNMENTAL ACTIVITIES As of December 31, 2016, the long-term debt of the financial reporting entity consisted of the following: Final Interest Issue Maturity Original Payable Rates Date Date Issue 12/31/16 G.O. Improvement Bonds: G.O. Improvement Bonds, Series 2009A 3.00-4.00% 5/7/2009 2/1/2025 $2,630,000 $1,740,000 G.O. Improvement Refunding Bonds, Series 2009B 2.50-3.00% 12/16/2009 2/1/2018 1,335,000 285,000 G.O. Improvement Bonds, Series 2010A 2.25-3.625% 5/20/2010 2/1/2026 1,375,000 985,000 G.O. Improvement Bonds, Series 2011A 3.00-4.00% 4/12/2011 2/1/2027 2,955,000 1,920,000 G.O. Improvement Refunding Bonds, Series 2011B 0.40-2.00% 12/29/2011 2/1/2021 2,210,000 1,185,000 G.O. Improvement Bonds, Series 2013B 0.45-2.625% 4/23/2013 2/1/2029 1,775,000 1,545,000 G.O. Improvement Bonds, Series 2014A 2.00-3.30% 4/10/2014 2/1/2030 2,070,000 1,945,000 G.O. Improvement Bonds, Series 2015A 2.00-3.00% 5/19/2015 2/1/2031 2,580,000 2,580,000 G.O. Improvement Bonds, Series 2016A 2.00-2.75% 6/2/2016 2/1/2032 1,455,000 1,455,000 Total improvement bonds 18,385,000 13,640,000 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 1,170,000 1,305,000 1,170,000 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 3,385,000 G.O. Tax Increment Refunding Bonds, Series 2015B 2.00-3.00% 12/29/2015 2/1/2031 4,310,000 4,065,000 Total tax increment revenue bonds 7,975,000 7,450,000 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 2,825,000 G.O. Tax Abatement Bonds: G.O. Tax Abatement Bonds, Series 2009A 3.00-4-00% 5/7/2009 2/1/2025 1,335,000 950,000 G.O. Tax Abatement Bonds, Series 2016B 2.00% 6/2/2016 2/1/2026 1,445,000 1,445,000 Total tax abatement bonds 2,780,000 2,395,000 G.O. Bonds: G.O. Improvement Refunding Bonds, Series 2012A 2.00-2.75% 4/25/2012 2/1/2028 5,500,000 4,195,000 Issuance premiums (discounts)N/A 620,404 Total - bonded indebtedness 39,940,000 32,295,404 Compensated absences payable - 652,938 Total City indebtedness - governmental activities $39,940,000 $32,948,342 59 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 BUSINESS-TYPE ACTIVITIES Business-type activities Final Interest Maturity Original Payable Rates Date Date Issue 12/31/16 Revenue Bonds: G.O. Water and Sewer Revenue Refunding Bonds, Series 2013A 2.00% 4/16/2003 2/1/2024 $1,440,000 $1,100,000 Issuance premiums (discounts)N/A 31,933 Total - bonded indebtedness 1,440,000 1,131,933 Compensated absences - 160,501 Total City indebtedness - business-type activities 1,440,000 1,292,434 Total City indebtedness $41,380,000 $34,240,776 Annual debt service requirements to maturity for long-term debt are as follows: Year Ending December 31 Principal Interest Principal Interest 2017 $1,330,000 $346,619 $485,000 $84,700 2018 1,365,000 311,934 490,000 74,950 2019 1,295,000 281,728 500,000 65,050 2020 1,170,000 253,090 515,000 54,900 2021 1,050,000 226,521 530,000 44,450 2022 940,000 200,849 545,000 33,564 2023 970,000 174,227 320,000 24,458 2024 990,000 145,489 155,000 19,155 2025 1,015,000 115,212 160,000 15,333 2026 810,000 87,798 160,000 11,252 2027 710,000 65,629 165,000 6,944 2028 555,000 48,223 170,000 2,337 2029 575,000 33,094 - - 2030 455,000 18,434 - - 2031 300,000 7,394 - - 2031 110,000 1,512 - - Total $13,640,000 $2,317,753 $4,195,000 $437,093 G.O. Improvement Bonds Governmental Activities G.O. Refunding Bonds 60 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 Year Ending December 31 Principal Interest Principal Interest Principal Interest 2017 $315,000 $55,490 $385,000 $190,038 $865,000 $85,463 2018 325,000 49,090 405,000 182,238 315,000 68,026 2019 335,000 42,490 420,000 173,988 320,000 60,656 2020 345,000 35,690 445,000 165,438 330,000 52,886 2021 355,000 28,690 450,000 156,487 340,000 44,646 2022 370,000 21,348 475,000 146,212 350,000 35,756 2023 385,000 13,320 495,000 134,412 360,000 25,653 2024 395,000 4,542 510,000 122,062 375,000 14,450 2025 - - 530,000 109,313 220,000 5,250 2026 - - 555,000 95,700 90,000 900 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 $2,825,000 $250,660 $7,450,000 $1,690,631 $3,565,000 $393,686 All Other General Obligation Bonds Governmental Activities Refunding Bonds Tax IncrementLease Revenue Bonds Year Ending December 31 Principal Interest 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 $1,100,000 $91,200 Business-Type Activities Revenue Bonds It is not practicable to determine the specific year for payment of long-term accrued compensated absences. 61 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2016, was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Bonds payable: G.O. improvement debt $13,345,000 $1,455,000 ($1,160,000) $13,640,000 $1,330,000 G.O. improvement refunding bonds 4,665,000 - (470,000) 4,195,000 485,000 G.O. street reconstruction bonds 1,305,000 - (135,000) 1,170,000 135,000 G.O. tax abatement bonds 1,090,000 1,445,000 (140,000) 2,395,000 730,000 G.O. tax increment refunding bonds 7,865,000 - (415,000) 7,450,000 385,000 G.O. lease revenue refunding bonds 3,125,000 - (300,000) 2,825,000 315,000 Total bonds payable - governmental activities 31,395,000 2,900,000 (2,620,000) 31,675,000 3,380,000 Issuance premiums (discounts)618,259 69,485 (67,340) 620,404 69,577 Total bonded indebtedness 32,013,259 2,969,485 (2,687,340) 32,295,404 3,449,577 Compensated absences 668,432 433,649 (449,143) 652,938 208,086 Total governmental activities long-term liabilities $32,681,691 $3,403,134 ($3,136,483) $32,948,342 $3,657,663 Business-type activities: Revenue bonds $1,215,000 $ - ($115,000) $1,100,000 $125,000 Total bonds payable - business-type activities 1,215,000 - (115,000) 1,100,000 125,000 Issuance premiums (discounts)36,440 - (4,507) 31,933 4,508 Total bonded indebtedness 1,251,440 - (119,507) 1,131,933 129,508 Compensated absences 162,047 35,323 (36,869) 160,501 51,218 Total business-type activities long-term liabilities $1,413,487 $35,323 ($156,376) $1,292,434 $180,726 For the governmental activities, compensated absences are generally liquidated by the Internal Service Employee Benefit Fund. All long-term bonded indebtedness outstanding at December 31, 2016 is backed by the full faith and credit of the City, including improvement and revenue bond issues. Delinquent assessments receivable at December 31, 2016 totaled $11,897. 62 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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 $1,122,063 $120,276 $152,698 2009B Tax Abatement Refunding Refunding of 2001A Tax Tax abatement revenue 100% N/A 2009-2016 $ - $55,688 $32,511 Abatement Bonds 2009A Road Improvements 2009 road reconstruction Special assessments 21%N/A 2009-2025 $2,053,564 $224,618 $21,966 2010A Road Improvements 2010 road construction Special assessments 9%N/A 2010-2026 $1,161,011 $112,493 $4,270 2011A Road Improvements 2011 road construction Special assessments 25%N/A 2011-2027 $1,828,613 $169,575 $14,977 2012A Road Improvements 2012 road construction Special assessments 25%N/A 2012-2028 $4,632,093 $564,250 $56,412 2012A Lease Revenue 2012 building improvements Property Taxes 100%N/A 2012 - 2024 $3,075,660 $361,640 $381,273 Refunding Lease Revenue Bonds 2003A 2013B Road Improvements 2013 road construction Special assessments 25% N/A 2013-2029 $1,767,815 $142,786 $17,756 2014A Road Improvements 2014 road construction Special assessments 25% N/A 2014 - 2030 $2,359,410 $177,880 $34,077 2016A Road Improvements 2016 road reconstruction Special assessments and 100%N/A 2016 - 2032 $1,747,401 $ - $64,400 tax levy 2016B Tax Abatement Mirror Lake improvements and Special assessments and 100%N/A 2016 - 2026 $1,546,086 $ - $ - pedestrian safety improvements tax levy 2014C Road Improvements Refunding of 2008A Tax levy 25% N/A 2014 - 2024 $1,290,538 $163,275 $216,460 Sikver Lake Road improvements 2009B Road Improvements Refunding of 2001B and 2002A Special assessments 7% N/A 2009-2018 $292,200 $195,413 $13,599 Refunding Road Improvement Bonds 2015A Road Improvements 2015 road construction Special assessments 100% N/A 2015-2031 $3,081,244 $71,415 $70,808 2015B TIF Refunding 2006B TIF Bonds TIF 100% N/A 2015-2031 $4,927,369 $303,733 $795,805 2014B TIF Refunding 2007 TIF Bonds TIF 100% N/A 2015 -2031 $4,213,263 $267,325 $680,471 2013A G.O. Water/Sewer Revenue Refunding 2003B G.O Water/ Charges for services 100% 82% 2013-2024 $1,191,200 $138,150 $1,923,256 Sewer Revenue Bonds 2011A Road Improvements Refunding 2003A Street Special assessments 22% N/A 2011-2026 $435,031 $139,688 $13,103 Refunding Improvement Bonds 2011B Road Improvements Refunding 2004A and 2005A Special assessments 25% N/A 2012-2020 $1,231,465 $274,745 $22,586 Refunding Street Improvement Bonds Revenue Pledged Current Year 63 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 Note 7 DEFINED BENEFIT PENSION A. COST SHARING MULTIPLE – EMPLOYER PLANS 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 64 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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 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 members 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 2016. The City was required to contribute 11.78% of pay for Basic Plan members and 7.50% for Coordinated Plan members in calendar year 2016. The City’s contributions to the GERF for the year ended December 31, 2016, were $160,607. 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 2016. The City was required to contribute 16.20% of pay for PEPFF members in calendar year 2016. The City’s contributions to the PEPFF for the year ended December 31, 2016, were $447,527. The City’s contributions were equal to the required contributions as set by state statute. PENSION COSTS 1. GERF Pension Costs At December 31, 2016, the City reported a liability of $2,866,185 for its proportionate share of the GERF’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $6 million to the fund in 2016. The State of Minnesota is considered a non-employer contributing entity and the state’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $37,474. The net pension liability was measured as of June 30, 2016, 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, 2015, 65 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 through June 30, 2016, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2016, the City’s proportion was .0353% which was an increase of .0010% from its proportion measured as of June 30, 2015. For the year ended December 31, 2016, the City recognized pension expense of $377,487 for its proportionate share of the GERF’s pension expense. In addition, the City recognized an additional $11,174 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $6 million to the GERF. At December 31, 2016, 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 $ - $232,834 Changes in actuarial assumptions 561,202 - Difference between projected and actual investment earnings 544,014 - Changes in proportion 37,149 89,253 Contributions paid to PERA subsequent to the measurement date 80,307 - Total $1,222,672 $322,087 $80,307 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, 2017. 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 2017 $213,793 2018 213,793 2019 289,161 2020 103,531 2021 - Thereafter - 2. PEPFF Pension Costs At December 31, 2016, the City reported a liability of $11,718,468 for its proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2016, 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, 2015, through June 30, 2016, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2016, the City’s proportion was .2920% which was an increase of .0150% from its proportion measured as of June 30, 2015. The City also recognized 66 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 $26,280 for the year ended December 31, 2016, as revenue (and an offsetting reduction of net pension liability) 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. For the year ended December 31, 2016, the City recognized pension expense of $2,052,724 for its proportionate share of the PEPFF’s pension expense. At December 31, 2016, 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 $ - $1,344,330 Changes in actuarial assumptions 6,449,185 - Difference between projected and actual investment earnings 1,788,320 - Changes in proportion 140,316 21,601 Contributions paid to PERA subsequent to the measurement date 221,370 - Total $8,599,191 $1,365,931 $221,370 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, 2017. 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 2017 $1,505,322 2018 1,505,322 2019 1,505,322 2020 1,360,802 2021 1,135,122 Thereafter - ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2016 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% per year Active Member Payroll Growth 3.25% per year Investment Rate of Return 7.50% Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors and disibilitants were based on RP-2014 tables for the General Employees Plan and RP-2000 67 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 tables for the Police and Fire Plan for males or females, as appropriate, with slight adjustments. Cost of living benefit increases for retirees are assumed to be one percent per year for all future years for the General Employees Plan and Police and Fire Plan. Actuarial assumptions used in the June 30, 2016 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the GERF was completed in 2015. The experience study for PEPFF was for the period July 1, 2004, through June 30, 2009. The following changes in actuarial assumptions occurred in 2016: General Employees Fund  The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and 2.5% per year thereafter to 1.0% per year for all future years.  The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%.  Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Police and Fire Fund  The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and 2.5% thereafter to 1.0% per year for all future years.  The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 7.6%.  The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return 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 geometric 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% Total 100% DISCOUNT RATE The discount rate used to measure the total pension liability in 2016 was 7.50%, a reduction from the 7.9% used in 2015. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. 68 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 Based on these assumptions, the fiduciary net position of the General Employees Fund was projected to be available to make all projected future benefit payments of current plan members. 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. In the Police and Fire Fund the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members through June 30, 2056 and June 30, 2058 respectively. Beginning in fiscal years ended June 30, 2057 for the Police and Fire Fund, when projected benefit payments exceed the funds’ projected fiduciary net position, benefit payments were discounted at the municipal bond rate of 2.85% based on an index on 20-year general obligation bonds with an average AA credit rating at the measurement date. An equivalent single discount rate of 5.60% for the Police and Fire Fund was determined that produced approximately the same present value of projected benefits when applied to all years of projected benefits as the present value of projected benefits using 7.50% applied to all years of projected benefits through the point of asset depletion and 2.85% after. 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 (6.5%) Discount Rate (7.5%) Discount Rate (8.5%) City's proportionate share of the GERF net pension liability $4,070,832 $2,866,185 $1,873,884 1% Decrease in 1% Increase in Discount Rate (4.6%) Discount Rate (5.6%) Discount Rate (6.6%) City's proportionate share of the PEPFF net pension liability $16,404,300 $11,718,468 $7,889,787 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 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. 69 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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. 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. 70 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 EMPLOYEES COVERED BY BENEFIT TERMS At December 31, 2016, 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) 4 Partially vested (10 years to 19 years) 6 Nonvested (less than 10 years) 20 Total 35 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, 2016, were $6,000. The City’s contributions exceeded the required contribution of $6,000 as set by state statute. State aid contributions for the year ended December 31, 2016 were $51,174. NET PENSION LIABILITY The City’s net pension liability (asset) was measured as of December 31, 2016, 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, 2016. ACTUARIAL ASSUMPTIONS The total pension liability in the December 31, 2016 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Investment rate of return 6.00% 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. 71 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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. 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 Long-Term Expected Asset Class Real Rate of Return Nominal Rate of Return Domestic equity 5.58% 8.33% International equity 5.71% 8.46% Fixed income 2.27% 5.02% Real estate and alternatives 4.44% 7.19% Cash and equivalents 0.84% 3.59% Total (weighted ave, rounded to 1/4%) 6.00% DISCOUNT RATES The discount rate used to measure the total pension liability was 6.00%. 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. 72 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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, 2015 $741,775 $893,343 ($151,568) Changes for the year: Service cost 47,233 47,233 Interest 31,829 31,829 Differences between expected and actual experience - - - Change of assumptions (36,075) - (36,075) Contributions - employer 6,000 (6,000) On behalf contributions - State of MN 51,174 (51,174) Contributions - employee - - Net investment income 39,971 (39,971) Benefit payments, including refunds of employee contributions (80,200) (80,200) Administrative expense (8,653) 8,653 Other changes - - Net changes (37,213) 8,292 (45,505) Balance at December 31, 2016 $704,562 $901,635 ($197,073) Increase (Decrease) PENSION LIABILITY (ASSET) SENSITIVITY The following presents the net pension liability (asset) of the City, calculated using the discount rate of 6.00 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 (5.00 percent) or 1-percentage-point higher (7.00 percent) than the current rate: Current 1% Decrease Discount Rate 1% Increase (5.00%) (6.00%) (7.00%) Net pension liability (asset) ($176,780) ($197,073) ($216,402) 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. 73 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RELATED TO PENSIONS For the year ended December 31, 2016, the City recognized pension expense of $8,067. The City also recognized $51,174 for the year ended December 31, 2016, as pension expense (and grant revenue) for the State of Minnesota’s on-behalf contribution to the plan. At December 31, 2016, 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 - 32,333 Difference between projected and actual investment earnings 34,902 - Total $34,902 $32,333 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 2017 $8,067 2018 8,067 2019 8,069 2020 (4,269) 2021 (3,742) Thereafter (13,623) C. PENSION EXPENSE Pension expense recognized by the City for the fiscal year ended December 31, 2016 is as follows: GERF $377,487 PEPFF 2,052,724 Fire Relief 58,446 Total $2,488,657 74 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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, contributions 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. Total contributions made by the City during fiscal year 2016 were: Required Employer Employee (Pension Expense) Employee Employer Rate $1,913 $1,913 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 75 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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, Medicare becomes the primary insurer and the City’s plan becomes secondary. 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, 2016 through December 31, 2016 monthly premiums paid for Police or Firefighters disabled in the line of duty are: Employee Employee Plus Spouse Aware Plan: $30 Copay $935 $1,963 $2600 HDHP/HSA 617 1,294 $4000 HDHP/HSA 564 1,183 Accord Plan: $30 Copay 900 1,887 $2600 HDHP/HSA 594 1,245 $4000 HDHP/HSA 542 1,138 76 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 C. PARTICIPANTS As of the actuarial valuation dated January 1, 2016, participants consisted of: Retirees and beneficiaries currently purchasing health insurance through the City 1 Disabled police and firefighters 1 Active employees 59 Total 61 Participating employers 1 D. FUNDING POLICY The additional cost of using a blended rate for actives and retirees is currently funded on a pay-as-you- go basis. The City Council may change the funding policy at any time. E. ANNUAL OPEB COSTS AND NET OPEB OBLIGATION The City’s annual other post employment benefit (OPEB) cost is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The net OPEB obligation as of December 31, 2016, was calculated as follows: Annual required contribution (ARC)$68,777 Interest on net OPEB obligation 27,050 Adjustment to ARC (23,466) Annual OPEB cost 72,361 Contributions made during the year (8,879) Increase (decrease) in net OPEB obligation 63,482 Net OPEB obligation - beginning of year 601,108 Net OPEB obligation - end of year $664,590 For the governmental activities, the net OPEB obligation is generally liquidated by the General Fund. 77 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 The City had an actuarial valuation performed for the plan as of January 1, 2016 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, 2016. The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for 2014, 2015, and 2016 was as follows: Percentage of Fiscal Year Annual OPEB Employer Annual OPEB Cost Net OPEB Ended Cost Contributions Contributed Obligation December 31, 2014 106,523 13,386 13%509,707 December 31, 2015 110,886 19,485 18%601,108 December 31, 2016 72,361 8,879 12%664,590 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, 2016 $ - $644,198 $644,198 0.00% $4,162,000 15.48% *Using the Projected Unit Credit Actuarial cost method. G. ACTUARIAL METHODS AND ASSUMPTIONS Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the health care cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions (ARC) of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the January 1, 2016 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 3.5%. The actuarial value of assets was $0. The plan’s 78 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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, 2016 are as follows: Fund Receivable Payable Governmental activities: Major funds: General Fund $169,200 $ - Nonmajor funds: HRA Fund - 51,333 Revolving Improvement Fund - 23,265 2017 Street Improvement Project Fund - 94,602 Total $169,200 $169,200 Interfund payables and receivables are representative of lending/borrowing arrangements to cover deficit cash balances at the end of the fiscal year. Interfund loans receivable and payable balances at December 31, 2016 are as follows: Fund Receivable Payable Purpose Major funds: Public Utilities Infrastructure $1,004,286 $ - HRA TIF Improvements - 959,326 Provide financing for pay off of Fannie Mae loan Nonmajor funds: Revolving Improvement - 44,960 Provide financing for Arbors Alley Project - Total $1,004,286 $1,004,286 79 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 Interfund transfers: Street Public Nonmajor Internal General Improvement HRA TIF Utilities Governmental Service Fund Debt Service Debt Service Infrastructure Fund Fund Total Governmental activities: General Fund $ - $ - $ - $ - $81,800 $86,300 $168,100 HRA TIF Improvements - - 574,058 - - - 574,058 Nonmajor 77,210 25,000 - - 115,000 - 217,210 Business-type activities: Liquor 156,396 - - - 92,653 - 249,049 Water/Sewer/Water Plant 200,000 - - 1,905,561 606,275 - 2,711,836 Stormwater utility - 170,000 - - - - 170,000 Total transfers $433,606 $195,000 $574,058 $1,905,561 $895,728 $86,300 $4,090,253 Transfer out Governmental Activities Major Funds Transfer In There were transfers made in 2016 to close out the Water Filtration Fund. All of the other 2016 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, 2016 as follows: Fund Amount Nonmajor funds: Internal Service Fund $7,036,594 HRA Fund 7,582 HSIP Tax Abatement Fund 450 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. 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. 80 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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. The City has been put on notice of potential claims by the trustee on behalf of the next of kin concerning a Police shooting resulting in a death. No litigation has been commenced. The occurrence is covered by underlying policies through the League of Minnesota Cities Insurance Trust. The threatened litigation includes claims under 42 U.S.C. 1983 and 1988 which are not subject to policy limits. 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, 2016. 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. 81 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 E. PAY-AS-YOU-GO TAX INCREMENT The City has three 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: Issued in 2004 in the principal sum of $4,464,407 with an interest rate of 6.75% per annum. Principal and interest shall be paid on February 1 and August 1 thereafter to and including February 1, 2029. Payments are payable solely from available tax increment derived from the developed/redeveloped property and paid to the City. The pay-as-you-go note provides for payment to the developer equal to 90% of all tax increment received in the prior six months. The payment reimburses the developer for public improvements. The City shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final payment on February 1, 2029. The current year abatement (TIF note payments) amount to $515,270. At December 31, 2016, the principal amount outstanding on the note was $4,176,310. TIF District #3-5, Phase II Town Homes: Issued in 2006 in the principal sum of $937,520 with an interest rate of 6% per annum. Principal and interest shall be paid on February 1 and August 1 thereafter to and including August 1, 2031. Payments are payable solely from available tax increment derived from the developed/redeveloped property and paid to the City. The pay-as-you-go note provides for payment to the developer equal to 95% of all tax increment received in the prior six months. The payment reimburses the developer for public improvements. The City shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final payment on August 1, 2031. The current year abatement (TIF note payments) amount to $55,463. At December 31, 2016, the principal amount outstanding on the note was $937,520. TIF District # 3-5, The Legends Issued in 2016 in the principal sum of $1,023,000 with an interest rate of 5% per annum. Principal and interest shall be paid on February 1 and August 1 thereafter to and including February 1, 2028. Payments are payable solely from available tax increment derived from the developed/redeveloped property and paid to the City. The pay-as-you-go note provides for payment to the developer equal to 90% of all tax increment received in the prior six months. The payment reimburses the developer for public improvements. The City shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final payment on February 1, 2028. The current year abatement (TIF note payments) amount to $56,905. At December 31, 2016, the principal amount outstanding on the note was $966,095. 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 82 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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. These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 2016. Note 14 FUND BALANCE A. CLASSIFICATIONS At December 31, 2016, a summary of the governmental fund balance (deficit) classifications are as follows: Street Improvement Street Public Debt HRA TIF Improvement HRA TIF Utilities General Fund Service Debt Service Projects Projects Infrastructure Other Funds Total Nonspendable: Prepaid items $112,072 $ - $ - $20,000 $ - $ - $37,188 $169,260 Inventory 3,410 - - - - - - 3,410 Total nonspendable 115,482 0 0 20,000 0 0 37,188 172,670 Restricted for: Tax increment - - - - 1,947,003 - - 1,947,003 Public safety - - - - - - 25,634 25,634 Redevelopment activities - - - - - - - - Debt service - 4,017,709 10,496 - - - 906,411 4,934,616 Total restricted 0 4,017,709 10,496 0 1,947,003 0 932,045 6,907,253 Committed to: Community center operations/maintenance - - - - - - 43,550 43,550 Recycling - - - - - - 18,188 18,188 Revolving loan program - - - - - - 43,765 43,765 Total committed 0 0 0 0 0 0 105,503 105,503 Assigned to: Community center operations/maintenance - - - - - - 14,971 14,971 Street improvements/rehabilitiation - - - 1,105,760 - - - 1,105,760 Building improvements - - - - - - 176,126 176,126 Public safety - - - - - - 11,494 11,494 Storm water system - - - - - 10,104,981 - 10,104,981 Parks and recreation - - - - - - 164,151 164,151 Other capital improvements - - - - - - 1,570,746 1,570,746 Total assigned 0 0 0 1,105,760 0 10,104,981 1,937,488 13,148,229 Unassigned 2,204,185 - - - (1,640,763) - (52,966) 510,456 Total $2,319,667 $4,017,709 $10,496 $1,125,760 $306,240 $10,104,981 $2,959,258 $20,844,111 83 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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, 2016, the unassigned fund balance of the General Fund was 38% of the subsequent year’s budgeted expenditures. 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, 2016, 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, 2016 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: 2016 Annual Lease Initial Lease Adjustment Expiration Automatic Lessee Amount Factor Date Renewals Sprint Spectrum $26,722 4%2/27/18 4-5 year terms Verizon (formerly Clearwire Communications) 29,784 4%2/28/17 N/A Verizon Wireless 25,780 3%8/1/18 4-5 year terms 84 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 Future minimum lease payments are as follows: Verizon (formerly Sprint Clearwire Verizon Spectrum Communications) Wireless 2017 $27,791 $5,061 $26,553 2018 28,902 - 27,350 2019 30,059 - 28,170 2020 31,261 - 29,016 2021 32,590 - 29,886 2022 33,991 - 30,783 2023 35,453 - 31,706 2024 36,978 - 32,657 2025 38,475 - 33,637 2026 40,110 - 34,646 2027 41,835 - 35,685 2028 43,634 - 36,756 2029 7,638 - 37,859 2030 - - 38,994 2031 - - 40,164 2032 - - 41,369 2033 - - 42,610 2034 - - 43,889 2035 - - 45,205 2036 - - 46,561 2037 - - 27,630 Total $428,717 $5,061 $741,126 85 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 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 2016 and 2015 is computed as follows: December 31, December 31, 2016 2015 Market value: Ramsey County $289,820,400 $255,155,300 Hennepin County 531,886,837 461,515,606 Total market value 821,707,237 716,670,906 Debt limit percentage 3.00% 3.00% Debt limit 24,651,217 21,500,127 Amount of debt applicable to debt limit: Total bonded debt 32,775,000 32,610,000 Less nonapplicable debt: Revenue bonds (water, sewer) (1,100,000) (1,215,000) Tax abatement bonds (2,395,000) (1,090,000) Improvement bonds (17,835,000) (18,010,000) Tax increment bonds (7,450,000) (7,865,000) Cash and investments in applicable debt service funds (818,202) (819,672) Total amount of debt applicable to debt limit 3,176,798 3,610,328 Legal debt margin $21,474,419 $17,889,799 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. 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. 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. 80 Blending Requirements for Certain Component Units. The provisions of this Statement are effective for reporting periods beginning after June 15, 2016. 86 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 Statement No. 81 Irrevocable Split-Interest Agreements. The provisions of this Statement are effective for reporting periods beginning after December 15, 2016. Statement No. 82 Pension Issues – an amendment of GASB Statement No. 67, No. 68 and No. 73. The provisions of this Statement are effective for reporting periods beginning after June 15, 2016, except for the requirements of this Statement for the selection of assumptions in a circumstance in which an employer’s pension liability is measured as of a date other than the employer’s most recent fiscal year-end. In that circumstance, the requirements for the selection of assumptions are effective for that employer in the first reporting period in which the measurement date of the pension liability is on or after June 15, 2017. Statement No. 83 Certain Asset Retirement Obligations. The provisions of this Statement are effective for reporting periods beginning after June 15, 2018. Statement No. 84 Fiduciary Activities. The provisions of this Statement are effective for reporting periods beginning after December 15, 2018. Statement No. 85 Omnibus 2017. The provisions of this Statement are effective for reporting periods beginning after June 15, 2017. Statement No. 86 Certain Debt Extinguishment Issues. The provisions of this Statement are effective for reporting periods beginning after June 15, 2017. 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. 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: Governmental Activities Net position - January 1, 2015, as previously reported $15,524,257 Prior period adjustment: Deferred outflows of resources - pension related 265,222 Net pension liability (4,813,862) Net pension asset 205,387 Net position - January 1, 2015, as restated $11,181,004 87 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2016 Note 20 SUBSEQUENT EVENTS The City issued the $5,310,000 General Obligation Bonds, Series 2017A to finance 2017 road construction projects in the City, purchase a new fire truck, and to refund the City’s General Obligation Bonds, Series 2009A. 88 REQUIRED SUPPLEMENTARY INFORMATION 89 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, 2016 With Comparative Totals For The Year Ended December 31, 2015 2016 2015 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues: General property taxes $3,542,616 $3,542,616 $3,536,079 ($6,537) $3,437,635 Licenses and permits 220,844 222,551 304,079 81,528 296,465 Intergovernmental: Federal: Police grants 55,010 55,010 38,416 (16,594) 46,457 State: Local governement aid 523,019 523,019 523,010 (9) 505,415 Police aid 187,930 187,930 197,374 9,444 189,440 Fire aid 45,672 45,672 50,174 4,502 47,725 Municipal state aid - street maintenance 84,000 84,000 89,905 5,905 83,997 PERA aid 7,197 7,197 7,197 - 7,197 County: Street maintenance 21,965 21,965 28,493 6,528 25,440 Other 8,800 8,800 13,024 4,224 11,588 Local: School District DARE 14,500 14,500 15,462 962 14,500 Other 250 250 6,443 6,193 445 Total intergovernmental 948,343 948,343 969,498 21,155 932,204 Charges for services: Police contracts 1,306,052 1,306,052 1,306,052 - 1,268,772 Cable franchise fees 107,100 107,100 113,672 6,572 108,104 Antenna rental - water tower 82,285 82,285 82,245 (40) 79,322 Other 254,392 254,392 180,190 (74,202) 206,912 Total charges for services 1,749,829 1,749,829 1,682,159 (67,670) 1,663,110 Fines and forfeits 111,500 111,500 83,719 (27,781) 125,102 Contributions and donations 1,500 1,500 1,620 120 3,403 Other revenue: Investment income 10,000 10,000 26,856 16,856 22,960 Refunds and reimbursments 8,750 8,750 - (8,750) 31,411 Army settlement - - 150,977 150,977 - Miscellaneous - other 29,400 29,400 96,408 67,008 44,811 Total other revenue 48,150 48,150 274,241 226,091 99,182 Total revenues 6,622,782 6,624,489 6,851,395 226,906 6,557,101 Expenditures: General government: Mayor and council: Current: Personal services 37,871 37,871 40,984 (3,113) 36,562 Other services and charges 41,172 41,172 39,356 1,816 38,261 Total mayor and council 79,043 79,043 80,340 (1,297) 74,823 Budgeted Amounts 90 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, 2016 With Comparative Totals For The Year Ended December 31, 2015 2016 2015 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) General government: (continued) Public relations/cable: Current: Personal services $8,648 $8,648 $8,764 ($116) $7,846 Supplies 850 850 - 850 - Other services and charges 30,598 30,598 33,939 (3,341) 29,283 Capital outlay 2,500 2,500 - 2,500 - Total public relations/cable 42,596 42,596 42,703 (107) 37,129 General management: Current: Personal services 86,597 86,597 89,190 (2,593) 84,023 Supplies 1,025 1,025 64 961 218 Other services and charges 29,844 29,844 26,517 3,327 26,412 Total general management 117,466 117,466 115,771 1,695 110,653 Elections: Current: Personal services 26,283 26,283 19,713 6,570 19,713 Supplies 500 500 934 (434) 505 Other services and charges - - 1,467 (1,467) 2,969 Total elections 26,783 26,783 22,114 4,669 23,187 Finance: Current: Personal services 211,911 211,911 215,045 (3,134) 186,904 Supplies 8,874 8,874 8,691 183 7,964 Other services and charges 132,929 132,929 117,631 15,298 125,473 Total finance 353,714 353,714 341,367 12,347 320,341 Assessing: Current: Personal services 3,649 3,649 3,669 (20) 3,532 Supplies 153 153 138 15 166 Other services and charges 52,540 52,540 55,531 (2,991) 49,000 Total assessing 56,342 56,342 59,338 (2,996) 52,698 Legal: Current: Contracted services 110,750 110,750 104,693 6,057 135,029 Planning and zoning: Current: Personal services 11,478 11,478 11,084 394 10,155 Supplies 125 125 132 (7) 344 Other services and charges 59,800 59,800 110,736 (50,936) 51,787 Total planning and zoning 71,403 71,403 121,952 (50,549) 62,286 Budgeted Amounts 91 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, 2016 With Comparative Totals For The Year Ended December 31, 2015 2016 2015 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) General government: (continued) General government buildings: Current: Other services and charges $68,685 $77,085 $75,191 $1,894 $58,283 Total general government buildings 68,685 77,085 75,191 1,894 58,283 Total general government 926,782 935,182 963,469 (28,287) 874,429 Public safety: Civil defense: Current: Personal services 64,016 64,016 65,991 (1,975) 62,842 Supplies 469 469 150 319 951 Other services and charges 3,975 3,975 1,665 2,310 2,434 Total civil defense 68,460 68,460 67,806 654 66,227 Police protection: Current: Personal services 3,020,948 3,020,948 3,147,464 (126,516) 2,878,831 Supplies 128,093 128,093 91,024 37,069 105,476 Other services and charges 181,450 181,450 690,723 (509,273) 171,143 Total police protection 3,330,491 3,330,491 3,929,211 (598,720) 3,155,450 Fire protection: Current: Personal services 912,534 912,534 926,004 (13,470) 890,772 Supplies 37,396 37,396 35,006 2,390 30,543 Other services and charges 62,386 62,386 68,330 (5,944) 58,586 Total fire protection 1,012,316 1,012,316 1,029,340 (17,024) 979,901 Protective inspections: Current: Personal services 12,656 12,656 12,429 227 11,657 Supplies - - 92 (92) 336 Other services and charges 71,435 71,435 106,164 (34,729) 111,261 Total protective inspections 84,091 84,091 118,685 (34,594) 123,254 DARE program: Current: Personal services 12,510 12,510 10,039 2,471 10,425 Supplies 2,754 2,754 2,107 647 3,014 Total DARE program 15,264 15,264 12,146 3,118 13,439 Budgeted Amounts 92 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, 2016 With Comparative Totals For The Year Ended December 31, 2015 2016 2015 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) Public safety: (continued) Animal control: Current: Supplies $75 $75 $ - $75 $ - Contracted services 500 500 - 500 206 Total animal control 575 575 0 575 206 Total public safety 4,511,197 4,511,197 5,157,188 (645,991) 4,338,477 Public works: Street maintenance: Current: Personal services 414,703 414,703 387,822 26,881 379,404 Supplies 16,581 16,581 16,506 75 14,727 Other services and charges 107,510 103,510 100,477 3,033 110,382 Total street maintenance 538,794 534,794 504,805 29,989 504,513 Equipment maintenance: Current: Personal services 85,617 85,617 76,674 8,943 82,594 Supplies 287,616 287,616 160,804 126,812 234,273 Other services and charges 43,845 43,845 48,826 (4,981) 37,935 Total equipment maintenance 417,078 417,078 286,304 130,774 354,802 Tree and weed care: Current: Personal services 39,771 39,771 38,700 1,071 37,930 Other services and charges 4,877 4,877 5,776 (899) 3,594 Total tree and weed care 44,648 44,648 44,476 172 41,524 Total public works 1,000,520 996,520 835,585 160,935 900,839 Parks and recreation: Park maintenance: Current: Personal services 170,593 170,593 146,130 24,463 160,315 Supplies 11,000 11,000 11,193 (193) 16,188 Other services and charges 38,217 38,217 39,084 (867) 30,524 Total park maintenance 219,810 219,810 196,407 23,403 207,027 Recreation: Current: Community services 52,176 52,176 52,176 - 52,176 Total parks and recreation 271,986 271,986 248,583 23,403 259,203 Budgeted Amounts 93 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, 2016 With Comparative Totals For The Year Ended December 31, 2015 2016 2015 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) Nondepartmental: Personal services $36,210 $36,210 $26,843 $9,367 $34,133 Supplies 510 510 4,857 (4,347) - Insurance deductible costs 6,000 6,000 6,721 (721) 6,006 Total nondepartmental 42,720 42,720 38,421 4,299 40,139 Total expenditures 6,753,205 6,757,605 7,243,246 (485,641) 6,413,087 Revenues over (under) expenditures (130,423) (133,116) (391,851) (258,735) 144,014 Other financing sources (uses): Transfers in 313,560 313,560 433,606 120,046 195,060 Transfers out (168,100) (168,100) (168,100) - (368,543) Total other financing sources (uses) 145,460 145,460 265,506 120,046 (173,483) Net change in fund balance $15,037 $12,344 (126,345) ($138,689) (29,469) Fund balance - January 1 2,446,012 2,475,481 Fund balance - December 31 $2,319,667 $2,446,012 Budgeted Amounts 94 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, 2016 (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, 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% January 1, 2016 - 644,198 0.00% 644,198 4,162,000 15.48% 95 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, 2016 St. Anthony's Proportionate St. Anthony's Share of the Proportionate State's Net Pension Share of the Plan Proportionate Liability and Net Pension Fiduciary St. Anthony's St. Anthony's Share (Amount) the State's Liability Net Position Proportionate Proportionate of the Net Proportionate as a as a Share Share (Amount) Pension Share of the Net Percentage Percentage (Percentage) of of the Net Liability Pension Liability of its covered of the Total Measurement Fiscal Year the Net Pension Pension Associated with Associated with Covered Payroll Pension Date Ending Liability Liability (a) St. Anthony (b) St. Anthony (a+b) Payroll (c) ((a+b)/c) Liability June 30, 2015 December 31, 2015 0.0343% $1,777,604 $ - $1,777,604 $2,012,851 88.3% 78.2% June 30, 2016 December 31, 2016 0.0353% 2,866,185 37,474 2,903,659 2,192,080 132.5% 68.9% * 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. 96 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 13 SCHEDULE OF PENSION CONTRIBUTIONS* - GENERAL EMPLOYEES RETIREMENT FUND For The Year Ended December 31, 2016 Statutorily Contributions in Contribution Contributions as a Required Relation to the Deficiency Covered Percentage of Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered Ending (a) Contribution (b) (a-b) (c) Payroll (b/c) December 31, 2015 $161,326 $161,326 $ - $2,151,016 7.5% December 31, 2016 160,607 160,607 - 2,141,425 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. 97 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, 2016 Proportionate Share Proportionate of the Net Pension Plan Fiduciary Proportion Share (Amount) Liability as a Net Position as (Percentage) of of the Net Percentage of its a Percentage Measurement Fiscal Year the Net Pension Pension Covered Covered 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% June 30, 2016 December 31, 2016 0.2920% 11,718,468 2,816,408 416.1%63.9% * 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 15 SCHEDULE OF PENSION CONTRIBUTIONS* - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Year Ended December 31, 2016 Statutorily Contributions in Contribution Contributions as a Required Relation to the Deficiency Covered Percentage of Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered Ending (a) Contribution (b) (a-b) (c) Payroll (b/c) December 31, 2015 $435,571 $435,571 $ - $2,688,709 16.2% December 31, 2016 447,527 447,527 - 2,762,512 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. 99 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, 2016 Fiscal year ending December 31, 2016 December 31, 2015 Measurement date December 31, 2016 December 31, 2015 Total pension liability: Service cost $47,233 $44,095 Interest 31,829 30,759 Changes of benefit terms - - Differences between expected and actual experience - - Changes of assumptions (36,075) - Benefit payments, including refunds of employee contributions (80,200)(25,472) Net change in total pension liability (37,213)49,382 Total pension liability - beginning 741,775 692,393 Total pension liability - ending (a)$704,562 $741,775 Plan fiduciary net position: Contributions - employer $6,000 $6,000 Contributions - State of Minnesota 51,174 48,725 Contributions - employee - - Net investment income 39,971 (23,129) Benefit payments, including refunds of employee contributions (80,200)(25,472) Administrative expense (8,653)(10,561) Other - - Net change in plan fiduciary net position 8,292 (4,437) Plan fiduciary net position - beginning 893,343 897,780 Plan fiduciary net position - ending (b)$901,635 $893,343 Net pension liability (asset) - ending (a) - (b)($197,073)($151,568) Plan fiduciary net position as a percentage of the total pension liability 127.97%120.43% Covered-employee payroll**$ - $ - Net pension liability as a percentage of covered employee payroll**NA NA Pension benefit per year of service $3,300 $3,300 Number of plan participants 32 32 *GASB 68 was implemented in 2015. Information prior to 2015 is not available. **The Relief Association is comprised on volunteers, therefore there are no payroll expenditures. 100 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, 2016 Statutorily Contributions in Contribution Contributions as a Required Relation to the Deficiency Covered Percentage of Fiscal Year Contribution Statutorily Required (Excess) Payroll** Covered Ending (a) Contribution (b) (a-b) (c) Payroll** (b/c) December 31, 2015 $22,977 $53,725 ($30,748) $ - NA December 31, 2016 - 56,174 (56,174) - 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.) 101 - This page intentionally left blank - 102 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2016 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 2016 Changes Changes in Actuarial Assumptions: - The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and 2.5% per year thereafter to 1.0% per year for all future years. - The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%. - Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. PERA – Public Employees Police and Fire Fund 2016 Changes Changes in Actuarial Assumptions: - The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and 2.5% thereafter to 1.0% per year for all future years. - The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 5.6%. - The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Single Employer – Fire Relief Association 2016 Changes Changes in Actuarial Assumptions: - The assumed investment return was changed from 4.25% to 6.00%. The single discount rate changed from 4.25% to 6.00%. 103 - This page intentionally left blank - 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, 2016 With Comparative Totals For December 31, 2015 Special Debt Capital Revenue Service Project 2016 2015 Assets Cash and investments $124,485 $902,863 $1,030,414 $2,057,762 $1,486,149 Due from other governmental units 1,063 - 1,053,004 1,054,067 9,841 Accounts receivable - net - - - - 17,367 Prepaid items 2,442 - 34,746 37,188 2,175 Property taxes receivable: Delinquent 1,608 7,594 1,462 10,664 9,794 Due from county 1,098 3,638 955 5,691 - Special assessments receivable - - 24,217 24,217 27,245 Funds held by others 43,765 - - 43,765 71,941 Total assets $174,461 $914,095 $2,144,798 $3,233,354 $1,624,512 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $12,202 $540 $105,125 $117,867 $32,043 Interfund payable 51,333 - 23,265 74,598 - Interfund loan payable - - 44,960 44,960 50,580 Due to other governmental units 14 - - 14 3,439 Salaries payable 1,776 - - 1,776 1,348 Total liabilities 65,325 540 173,350 239,215 87,410 Deferred inflows of resources: Unavailable revenue 1,608 7,594 25,679 34,881 37,039 Total deferred inflows of resources 1,608 7,594 25,679 34,881 37,039 Fund balance (deficit): Nonspendable 2,442 - 34,746 37,188 2,157 Restricted 25,634 906,411 - 932,045 901,789 Committed 105,503 - - 105,503 94,107 Assigned 26,465 - 1,911,023 1,937,488 578,258 Unassigned (52,516) (450) - (52,966) (76,266) Total fund balance (deficit)107,528 905,961 1,945,769 2,959,258 1,500,045 Total liabilities, deferred inflows of resources, and fund balance $174,461 $914,095 $2,144,798 $3,233,354 $1,624,494 Total Nonmajor Governmental Funds 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, 2016 With Comparative Totals For The Year Ended December 31, 2015 Special Debt Capital Revenue Service Project 2016 2015 Revenues: General property taxes $138,346 $533,971 $151,900 $824,217 $704,274 Intergovernmental 20,768 32,511 1,053,004 1,106,283 681,154 Special assessments - - 4,477 4,477 8,126 Charges for services 131,259 - 1,500 132,759 324,514 Fines and forfeits 9,810 - - 9,810 5,721 Investment income 1,520 7,936 15,733 25,189 20,513 Contributions and donations - - 2,500 2,500 12,500 Refunds and reimbursements - - 99 99 25,832 Army settlement - - 77,572 77,572 - Other - - 3,200 3,200 852 Total revenues 301,703 574,418 1,309,985 2,186,106 $1,783,486 Expenditures: Current: General government 17,052 - 52,077 69,129 58,101 Public safety 7,082 - - 7,082 13,571 Public works - - 183,734 183,734 142,712 Parks and recreation 148,765 - 12,631 161,396 187,721 Housing and development 155,116 - - 155,116 117,902 Capital outlay: General government - - 8,201 8,201 168,176 Public safety - - 256,053 256,053 150,645 Public works - - 38,675 38,675 67,831 Debt service: Principal - 440,000 - 440,000 635,000 Interest - 97,603 2,659 100,262 113,459 Paying agent fees - 949 - 949 812 Professional service - - - - 1,219 Construction/acquistion costs - - - - 620,137 Total expenditures 328,015 538,552 554,030 1,420,597 2,277,286 Revenues over (under) expenditures (26,312) 35,866 755,955 765,509 (493,800) Other financing sources: Sale of capital assets - - 15,186 15,186 25,860 Transfers in 81,800 - 813,928 895,728 958,017 Transfers out (25,000) - (192,210) (217,210) (753,585) Total other financing sources 56,800 0 636,904 693,704 230,292 Net change in fund balance 30,488 35,866 1,392,859 1,459,213 (263,508) Fund balance (deficit) - January 1 77,040 870,095 552,910 1,500,045 1,763,553 Fund balance (deficit) - December 31 $107,528 $905,961 $1,945,769 $2,959,258 $1,500,045 Totals Nonmajor Governmental Funds 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 NONMAJOR SPECIAL REVENUE FUNDS December 31, 2016 With Comparative Totals For December 31, 2015 Community Center Fund Police Forfeiture Fund Assets Cash and investments $69,976 $31,552 Prepaid items 1,135 - Property taxes receivable: Delinquent - - Due from county - - Due from other governments - 1,063 Funds held by others - - Total assets $71,111 $32,615 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $11,217 $ - Interfund payable - - Due to other governmental units 14 - Salaries payable 224 - Total liabilities 11,455 0 Deferred inflows of resources: Unavailable revenue - - Total deferred inflows of resources 0 0 Fund balance (deficit): Nonspendable 1,135 - Restricted - 24,134 Committed 43,550 - Assigned 14,971 8,481 Unassigned - - Total fund balance (deficit)59,656 32,615 Total liabilities, deferred inflows of resources, and fund balance $71,111 $32,615 114 Statement 20 Recycling Fund HRA Fund Fire Education / Training Fund 2016 2015 $18,444 $ - $4,513 $124,485 $17,687 138 1,169 - 2,442 2,157 - 1,608 - 1,608 1,584 - 1,098 - 1,098 - - - - 1,063 - - 43,765 - 43,765 71,941 $18,582 $47,640 $4,513 $174,461 $93,369 $256 $729 $ - $12,202 $12,724 - 51,333 - 51,333 - - - - 14 673 - 1,552 - 1,776 1,348 256 53,614 0 65,325 14,745 - 1,608 - 1,608 1,584 0 1,608 0 1,608 1,584 138 1,169 - 2,442 2,157 - - 1,500 25,634 31,694 18,188 43,765 - 105,503 94,107 - - 3,013 26,465 25,348 - (52,516) - (52,516)(76,266) 18,326 (7,582)4,513 107,528 77,040 $18,582 $47,640 $4,513 $174,461 $93,369 Nonmajor Special Revenue Funds Totals 115 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR SPECIAL REVENUE FUNDS For The Year Ended December 31, 2016 With Comparative Totals For The Year Ended December 31, 2015 Community Center Fund Police Forfeiture Fund Revenues: General property taxes $ - $ - Intergovernmental: Local - other - - Charges for services: Administrative fees - - Rental receipts 125,000 - Fines and forfeits - 9,810 Investment income 859 418 Refunds and reimbursements - - Total revenues 125,859 10,228 Expenditures: Current: General government - - Public safety - 3,760 Parks and recreation 148,765 - Housing and development - - Total expenditures 148,765 3,760 Revenues over (under) expenditures (22,906)6,468 Other financing sources (uses): Transfers in 81,800 - Transfers out (25,000) - Total other financing sources (uses)56,800 0 Net change in fund balance 33,894 6,468 Fund balance (deficit) - January 1 25,762 26,147 Fund balance (deficit) - December 31 $59,656 $32,615 116 Statement 21 Recycling Fund HRA Fund Fire Education / Training Fund 2016 2015 $ - $138,346 $ - $138,346 $130,313 20,768 - - 20,768 21,327 2,636 - 3,623 6,259 7,127 - - - 125,000 125,000 - - - 9,810 5,721 182 - 61 1,520 960 - - - - 2,372 23,586 138,346 3,684 301,703 292,820 17,052 - - 17,052 18,793 - - 3,322 7,082 13,571 - - - 148,765 169,134 - 155,116 - 155,116 117,902 17,052 155,116 3,322 328,015 319,400 6,534 (16,770)362 (26,312)(26,580) - - - 81,800 232,830 - - - (25,000)(25,000) 0 0 0 56,800 207,830 6,534 (16,770)362 30,488 181,250 11,792 9,188 4,151 77,040 (104,210) $18,326 ($7,582)$4,513 $107,528 $77,040 Nonmajor Special Revenue Funds Totals 117 - This page intentionally left blank - 118 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. 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. HSIP Tax Abatement Fund (536) was established to account for debt service for sidewalks and signal light improvements. 119 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 22 NONMAJOR DEBT SERVICE FUNDS December 31, 2016 With Comparative Totals For December 31, 2015 Public Facilities Revenue Bonds Tax Abatement Fund HSIP Tax Abatement Fund 2016 2015 Assets Cash and investments $657,559 $245,304 $ - $902,863 $872,735 Property taxes receivable: Delinquent 5,435 2,159 - 7,594 7,564 Due from county 2,599 1,039 - 3,638 - Total assets $665,593 $248,502 $0 $914,095 $880,299 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $90 $ - $450 $540 $76 Due to other governments - - - - 2,564 Total liabilities 90 0 450 540 2,640 Deferred inflows of resources: Unavailable revenue 5,435 2,159 - 7,594 7,564 Total deferred inflows of resources 5,435 2,159 0 7,594 7,564 Fund balance: Restricted 660,068 246,343 - 906,411 870,095 Unassigned - - (450) (450) - Total fund balance (deficit) 660,068 246,343 (450) 905,961 870,095 Total liabilities, deferred inflows of resources, and fund balance $665,593 $248,502 $0 $914,095 $880,299 Totals Nonmajor Debt Service Funds 120 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, 2016 With Comparative Totals For The Year Ended December 31, 2015 Public Facilities Revenue Bonds Tax Abatement Fund HSIP Tax Abatement 2016 2015 Revenues: General property taxes $381,273 $152,698 $ - $533,971 $524,965 Intergovernmental: Local: ISD - tax abatement - 32,511 - 32,511 33,277 Charges for services - - - - 9,619 Investment income 6,059 1,877 - 7,936 6,280 Total revenues 387,332 187,086 0 574,418 574,141 Expenditures: Debt service: Principal 300,000 140,000 - 440,000 635,000 Interest 61,640 35,963 - 97,603 110,504 Paying agent fees 328 171 450 949 812 Professional service - - - - 1,219 Total expenditures 361,968 176,134 450 538,552 747,535 Revenues over (under) expenditures 25,364 10,952 (450) 35,866 (173,394) Other financing sources (uses): Transfers out - - - - (5,163) Net change in fund balance 25,364 10,952 (450) 35,866 (178,557) Fund balance - January 1 634,704 235,391 - 870,095 1,048,652 Fund balance - December 31 $660,068 $246,343 ($450) $905,961 $870,095 Nonmajor Debt Service Funds Totals 121 - This page intentionally left blank - 122 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. 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. 123 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS December 31, 2016 With Comparative Totals For December 31, 2015 Revolving Improvement Park Improvement Assets Cash and investments $ - $164,151 Due from other governmental units 1,053,004 - Accounts receivable - - Prepaids - - Property taxes receivable: Delinquent - - Due from county - - Special assessment receivable 24,217 - Total assets $1,077,221 $164,151 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $90,679 $ - Interfund payable 23,265 - Interfund loan payable 44,960 - Due to other governments - - Total liabilities 158,904 0 Deferred inflows of resources: Unavailable revenue 24,217 - Total deferred inflows of resources 24,217 0 Fund balance (deficit): Nonspendable - - Assigned 894,100 164,151 Unassigned - - Total fund balance (deficit)894,100 164,151 Total liabilities, deferred inflows of resources, and fund balance $1,077,221 $164,151 124 Statement 24 Capital Equipment Fund Building Improvement Fund 2016 2015 $690,574 $175,689 $1,030,414 $595,727 - - 1,053,004 9,841 - - - 17,367 - 34,746 34,746 - 913 549 1,462 646 518 437 955 - - - 24,217 27,245 $692,005 $211,421 $2,144,798 $650,826 $14,446 $ - $105,125 $19,243 - - 23,265 - - - 44,960 50,580 - - - 202 14,446 0 173,350 70,025 913 549 25,679 27,891 913 549 25,679 27,891 - 34,746 34,746 - 676,646 176,126 1,911,023 552,910 - - - - 676,646 210,872 1,945,769 552,910 $692,005 $211,421 $2,144,798 $650,826 Nonmajor Capital Project Funds Totals 125 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2016 With Comparative Totals For The Year Ended December 31, 2015 Revolving Improvement Park Improvement Revenues: General property taxes $ - $ - Intergovernmental: State 1,053,004 - Other - local participation - - Special assessments 4,477 - Charges for services: Service charges - 1,500 Investment income 1,594 2,514 Contributions and donations - - Refunds and reimbursements 99 - Army settlement - - Other - - Total revenues 1,059,174 4,014 Expenditures: General government: Materials and supplies - - Contractual services - - Capital outlay - - Public safety: Capital outlay - - Public works: Materials and supplies - - Contractual services 171,725 - Capital outlay - - Parks and recreation: Materials and supplies - 12,631 Debt service: Interest 2,659 - Construction/acquistion costs - - Total expenditures 174,384 12,631 Revenues over (under) expenditures 884,790 (8,617) Other financing sources: Sale of capital assets - - Transfers in - - Transfers out (192,210) - Total other financing sources (192,210)0 Net change in fund balance 692,580 (8,617) Fund balance (deficit) - January 1 201,520 172,768 Fund balance (deficit) - December 31 $894,100 $164,151 126 Statement 25 Capital Equipment Fund Building Improvement Fund 2016 2015 $79,825 $72,075 $151,900 $48,996 - - 1,053,004 - - - - 626,550 - - 4,477 8,126 - - 1,500 182,768 8,932 2,693 15,733 13,273 2,500 - 2,500 12,500 - - 99 23,460 77,572 - 77,572 - 3,200 - 3,200 852 172,029 74,768 1,309,985 916,525 52,077 - 52,077 39,308 - - - - 8,201 - 8,201 168,176 196,202 59,851 256,053 150,645 - 12,009 12,009 33,086 - - 171,725 109,626 38,675 - 38,675 67,831 - - 12,631 18,587 - - 2,659 2,955 - - - 620,137 295,155 71,860 554,030 1,210,351 (123,126)2,908 755,955 (293,826) 15,186 - 15,186 25,860 607,653 206,275 813,928 725,187 - - (192,210)(723,422) 622,839 206,275 636,904 27,625 499,713 209,183 1,392,859 (266,201) 176,933 1,689 552,910 819,111 $676,646 $210,872 $1,945,769 $552,910 Totals Nonmajor Capital Project Funds 127 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, 2016 With Comparative Actual Amounts For The Year Ended December 31, 2015 2015 Original Final Actual Actual Revenues: Charges for services: Rental receipts $125,000 $125,000 $125,000 $125,000 Investment income 150 150 859 430 Total revenues 125,150 125,150 125,859 125,430 Expenditures: Parks and recreation: Current: Personal services 16,066 16,066 15,002 14,281 Supplies 3,053 3,053 2,579 3,489 Contractual services 155,146 155,146 131,184 151,364 Total expenditures 174,265 174,265 148,765 169,134 Revenues over (under) expenditures (49,115) (49,115) (22,906) (43,704) Other financing sources: Transfer in 81,800 81,800 81,800 78,650 Transfer out (25,000) (25,000) (25,000) (25,000) Total other financing sources (uses)56,800 56,800 56,800 53,650 Net change in fund balance $7,685 $7,685 33,894 9,946 Fund balance - January 1 25,762 15,816 Fund balance - December 31 $59,656 $25,762 2016 Budgeted Amounts 128 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, 2016 With Comparative Actual Amounts For The Year Ended December 31, 2015 2015 Original Final Actual Actual Revenues: Forfeiture and confiscation $6,500 $6,500 $9,810 $5,721 Investment income 250 250 418 362 Total revenues 6,750 6,750 10,228 6,083 Expenditures: Public safety: Current: Supplies 3,010 3,010 857 11,108 Other services and charges 4,710 4,710 2,903 - Total expenditures 7,720 7,720 3,760 11,108 Revenues over (under) expenditures ($970)($970)6,468 (5,025) Fund balance - January 1 26,147 31,172 Fund balance - December 31 $32,615 $26,147 2016 Budgeted Amounts 129 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, 2016 With Comparative Actual Amounts For The Year Ended December 31, 2015 2015 Original Final Actual Actual Revenues: Intergovernmental: Hennepin County recycling grant $21,329 $21,329 $20,768 $21,327 Charges for services 3,500 3,500 2,636 3,465 Investment income 50 50 182 125 Total revenues 24,879 24,879 23,586 24,917 Expenditures: General government: Current: Personal services 8,978 8,978 8,764 7,754 Other services and charges 12,322 12,322 8,288 11,039 Total expenditures 21,300 21,300 17,052 18,793 Revenues over expenditures $3,579 $3,579 6,534 6,124 Fund balance (deficit) - January 1 11,792 5,668 Fund balance (deficit) - December 31 $18,326 $11,792 2016 Budgeted Amounts 130 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, 2016 With Comparative Actual Amounts For The Year Ended December 31, 2015 2015 Original Final Actual Actual Revenues: General property taxes $140,170 $140,170 $138,346 $130,313 Refunds and reimbursements 2,500 2,500 - 2,372 Total revenues 142,670 142,670 138,346 132,685 Expenditures: Housing and redevelopment: Current: Personal services 104,138 104,138 106,418 99,041 Contractual services 19,850 19,850 48,698 18,861 Total expenditures 123,988 123,988 155,116 117,902 Revenues over (under) expenditures 18,682 18,682 (16,770) 14,783 Other financing sources: Transfer in - - - 154,180 Net change in fund balance $18,682 $18,682 (16,770) 168,963 Fund balance (deficit) - January 1 9,188 (159,775) Fund balance (deficit) - December 31 ($7,582)$9,188 2016 Budgeted Amounts 131 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, 2016 With Comparative Actual Amounts For The Year Ended December 31, 2015 2015 Original Final Actual Actual Revenues: Charges for services $3,000 $3,000 $3,623 $3,662 Investment income 25 25 61 43 Total revenues 3,025 3,025 3,684 3,705 Expenditures: Public safety: Current: Personal services 1,400 1,400 1,260 1,420 Materials and supplies 1,424 1,424 2,062 1,043 Total expenditures 2,824 2,824 3,322 2,463 Revenues over expenditures $201 $201 362 1,242 Fund balance - January 1 4,151 2,909 Fund balance - December 31 $4,513 $4,151 2016 Budgeted Amounts 132 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 31 AGENCY FUND For The Year Ended December 31, 2016 Balance Balance January 1, December 31, 2016 Additions Deletions 2016 Developer Deposits Assets: Cash and investments ($4,122) $80,480 ($61,322) $15,036 Accounts receivable - net 4,122 86,176 (86,842) 3,456 Total assets $ - $166,656 ($148,164) $18,492 Liabilities: Deposits payable $ - $18,492 $ - $18,492 133 - This page intentionally left blank - 134 SUPPLEMENTARY FINANCIAL INFORMATION 135 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET STREET IMPROVEMENT DEBT SERVICE FUND December 31, 2016 With Comparative Totals For December 31, 2015 Prior to 2008 Street Improvement Bonds Fund 2008 Street Improvement Bond Fund 2009 Street Improvement Bond Fund 2010 Street Improvement Bond Fund 2011 Street Improvement Bond Fund Assets Cash and investments $1,773,577 $160,643 $329,110 $154,125 $388,961 Property taxes receivable: Delinquent 11,329 2,177 2,320 1,556 1,876 Due from county 5,990 989 1,220 1,117 862 Special assessments receivable 232,014 - 116,443 34,641 104,356 Total assets $2,022,910 $163,809 $449,093 $191,439 $496,055 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $7,050 $ - $ - $ - $450 Due to other governmental units - - - - - Total liabilities 7,050 0 0 0 450 Deferred inflows of resources: Unavailable revenue 243,343 2,177 116,150 36,197 106,233 Total deferred inflows of resources 243,343 2,177 116,150 36,197 106,233 Fund balance (deficit): Restricted 1,772,517 161,632 332,943 155,242 389,372 Total fund balance (deficit) 1,772,517 161,632 332,943 155,242 389,372 Total liabilities, deferred inflows of resources, and fund balance (deficit)$2,022,910 $163,809 $449,093 $191,439 $496,055 136 Exhibit 1 2012 Street Improvement Bond Fund 2013 Street Improvement Bond Fund 2014 Street Improvement Bond Fund 2015 Street Improvement Bond Fund 2016 Street Improvement Bond Fund 2016 2015 $337,341 $384,394 $185,721 $243,546 $53,818 $4,011,236 $3,693,186 1,762 1,088 1,575 1,400 - 25,083 24,387 1,060 477 978 1,109 - 13,802 2,299 280,849 140,413 208,171 300,347 239,064 1,656,298 1,838,071 $621,012 $526,372 $396,445 $546,402 $292,882 $5,706,419 $5,557,943 $90 $ - $450 $1,450 $450 $9,940 $774 - - - - - - 6,227 90 0 450 1,450 450 9,940 7,001 282,611 141,502 209,746 301,747 239,064 1,678,770 1,861,831 282,611 141,502 209,746 301,747 239,064 1,678,770 1,861,831 338,311 384,870 186,249 243,205 53,368 4,017,709 3,689,111 338,311 384,870 186,249 243,205 53,368 4,017,709 3,689,111 $621,012 $526,372 $396,445 $546,402 $292,882 $5,706,419 $5,557,943 Street Improvement Debt Service Funds 137 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, 2016 With Comparative Totals For The Year Ended December 31, 2015 Prior to 2008 Street Improvement Bonds Fund 2008 Street Improvement Bond Fund 2009 Street Improvement Bond Fund 2010 Street Improvement Bond Fund 2011 Street Improvement Bond Fund Revenues: General property taxes $754,860 $142,693 $144,146 $109,915 $124,843 Special assessments 303,390 - 22,088 4,270 14,977 Investment income 15,262 1,022 3,186 1,238 4,574 Total revenues 1,073,512 143,715 169,420 115,423 144,394 Expenditures: Debt service: Principal 905,000 135,000 160,000 80,000 115,000 Interest 96,483 28,275 64,618 32,492 54,575 Paying agent fees 8,683 586 400 400 747 Professional service 316 - 278 292 6,771 Issuance costs - - - - - Total expenditures 1,010,482 163,861 225,296 113,184 177,093 Revenues over (under) expenditures 63,030 (20,146) (55,876) 2,239 (32,699) Other financing sources (uses): Bonds issued - - - - - Transfers in 150,000 - 25,000 - - Total other financing sources (uses) 150,000 0 25,000 0 0 Net change in fund balance 213,030 (20,146) (30,876) 2,239 (32,699) Fund balance (deficit) - January 1 1,559,487 181,778 363,819 153,003 422,071 Fund balance (deficit) - December 31 $1,772,517 $161,632 $332,943 $155,242 $389,372 138 Exhibit 2 2012 Street Improvement Bond Fund 2013 Street Improvement Bond Fund 2014 Street Improvement Bond Fund 2015 Street Improvement Bond Fund 2016 Street Improvement Bond Fund 2016 2015 $119,827 $68,044 $153,688 $182,724 $ - $1,800,740 $1,755,161 34,306 17,756 34,077 70,808 33,275 534,947 352,353 3,366 4,934 1,008 1,331 - 35,921 26,026 157,499 90,734 188,773 254,863 33,275 2,371,608 2,133,540 130,000 115,000 125,000 - - 1,765,000 2,870,000 42,613 27,786 52,880 71,415 - 471,137 477,386 194 450 900 900 - 13,260 4,940 162 347 394 146 195 8,901 15,752 - - - - 450 450 477 172,969 143,583 179,174 72,461 645 2,258,748 3,368,555 (15,470) (52,849) 9,599 182,402 32,630 112,860 (1,235,015) - - - - 20,738 20,738 43,982 20,000 - - - - 195,000 228,982 20,000 0 0 0 20,738 215,738 272,964 4,530 (52,849) 9,599 182,402 53,368 328,598 (962,051) 333,781 437,719 176,650 60,803 - 3,689,111 4,651,162 $338,311 $384,870 $186,249 $243,205 $53,368 $4,017,709 $3,689,111 Street Improvement Debt Service Funds 139 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET Exhibit 3 HRA TIF DEBT SERVICE FUND December 31, 2016 With Comparative Totals For December 31, 2015 2015B G.O Tax Increment Refunding Bonds 2014B G.O Tax Increment Refunding Bonds 2016 2015 Assets Cash and investments $5,717 $4,779 $10,496 $12,649 Accounts receivable - - - 4,097 Total assets $5,717 $4,779 $10,496 $16,746 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $ - $ - $1,425 Total liabilities 0 0 0 1,425 Fund balance: Restricted 5,717 4,779 10,496 15,321 Total liabilities, deferred inflows of resources, and fund balance $5,717 $4,779 $10,496 $16,746 HRA TIF Debt Service Fund Totals 140 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, 2016 With Comparative Totals For The Year Ended December 31, 2015 2015B G.O Tax Increment Refunding Bonds 2014B G.O Tax Increment Refunding Bonds 2016 2015 Revenues: Investment income $86 $111 $197 $63 Total revenues 86 111 197 63 Expenditures: Debt service: Principal 245,000 170,000 415,000 245,000 Interest and other 58,733 97,325 156,058 336,268 Paying agent fees 292 292 584 4,634 Professional service 7,438 - 7,438 - Bond issuance costs - - - 84,152 Total expenditures 311,463 267,617 579,080 670,054 Revenues over (under) expenditures (311,377) (267,506) (578,883) (669,991) Other financing sources (uses): Refunding bonds issued - - - 4,310,000 Premium on debt issued - - - 110,659 Payment to refunded bond escrow agent - - - (4,332,935) Transfers in 310,233 263,825 574,058 587,200 Total other financing sources (uses) 310,233 263,825 574,058 674,924 Net change in fund balance (1,144) (3,681) (4,825) 4,933 Fund balance - January 1 6,861 8,460 15,321 10,388 Fund balance - December 31 $5,717 $4,779 $10,496 $15,321 HRA TIF Debt Service Fund Totals 141 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET Exhibit 5 HRA TIF IMPROVEMENTS FUND December 31, 2016 With Comparative Totals For December 31, 2015 Chandler Place Apache (Wal- Mart) Apache (Cub Foods)Eliminations 2016 2015 Assets Cash and investments $77,880 $1,271,569 $499,707 $ - $1,849,156 $1,360,351 Interfund loan receivable 646,850 - 722,566 (1,369,416) - - Property taxes receivable: Delinquent - 48,470 - - 48,470 69,656 Due from county - 20,134 - - 20,134 4,138 Total assets $724,730 $1,340,173 $1,222,273 ($1,369,416) $1,917,760 $1,434,145 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $603,724 $ - $ - $603,724 $233,057 Interfund loans payable - 2,328,742 - (1,369,416) 959,326 959,326 Total liabilities 0 2,932,466 0 (1,369,416) 1,563,050 1,192,383 Deferred inflows of resources: Unavailable revenue - 48,470 - - 48,470 69,656 Total deferred inflows of resources 0 48,470 0 0 48,470 69,656 Fund balance (deficit): Restricted 724,730 - 1,222,273 - 1,947,003 1,885,568 Unassigned - (1,640,763) - - (1,640,763) (1,713,462) Total fund balance (deficit) 724,730 (1,640,763) 1,222,273 0 306,240 172,106 Total liabilities, deferred inflows of resources, and fund balance (deficit) $724,730 $1,340,173 $1,222,273 ($1,369,416) $1,917,760 $1,434,145 Tax Increment Financing Districts HRA TIF Improvements Total 142 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, 2016 With Comparative Totals For The Year Ended December 31, 2015 Chandler Place Apache (Wal- Mart) Apache (Cub Foods) 2016 2015 Revenues: Tax increment collections $ - $1,476,275 $ - $1,476,275 $1,106,582 Investment income 26,685 8,808 35,946 71,439 66,122 Total revenues 26,685 1,485,083 35,946 1,547,714 1,172,704 Expenditures: General government: Other - 15,812 - 15,812 15,559 Housing and redevelopment 557 - 639 1,196 1,392 Debt service: Interest - 93,150 - 93,150 93,149 Construction/acquisition costs - 101,725 - 101,725 - Developer incentives - 627,639 - 627,639 475,886 Total expenditures 557 838,326 639 839,522 585,986 Revenues over expenditures 26,128 646,757 35,307 708,192 586,718 Other financing sources (uses): Transfers out - (574,058) - (574,058) (587,200) Net change in fund balance 26,128 72,699 35,307 134,134 (482) Fund balance - January 1 698,602 (1,713,462) 1,186,966 172,106 172,588 Fund balance (deficit) - December 31 $724,730 ($1,640,763) $1,222,273 $306,240 $172,106 Tax Increment Financing Districts HRA TIF Improvements Totals 143 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET Exhibit 7 STREET IMPROVEMENT PROJECT FUND December 31, 2016 With Comparative Totals For The Year Ended December 31, 2015 2014 Street Improvement Fund 2015 Street Improvement Fund 2016 Street Improvement Fund 2017 Street Improvement Fund 2016 2015 Assets Cash and investments $2,167 $194,544 $1,036,276 $ - $1,232,987 $367,197 Due from other governmental units - - 392,228 - 392,228 144,803 Prepaids - - 20,000 - 20,000 - Total assets $2,167 $194,544 $1,448,504 $0 $1,645,215 $512,000 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $1,162 $12,436 $63,902 $77,500 $216,806 Contracts payable - 44,333 303,020 - 347,353 153,565 Interfund payable - - - 94,602 94,602 414,064 Total liabilities 0 45,495 315,456 158,504 519,455 784,435 Fund balance (deficit): Nonspendable - - 20,000 - 20,000 - Assigned 2,167 149,049 1,113,048 (158,504) 1,105,760 - Unassigned - - - - - (272,435) Total fund balance (deficit) 2,167 149,049 1,133,048 (158,504) 1,125,760 (272,435) Total liabilities, deferred inflows of resources, and fund balance (deficit) $2,167 $194,544 $1,448,504 $0 $1,645,215 $512,000 Total Street Improvement Project Fund 144 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, 2016 With Comparative Totals For The Year Ended December 31, 2015 2014 Street Improvement Fund 2015 Street Improvement Fund 2016 Street Improvement Fund 2017 Street Improvement Fund 2016 2015 Revenues: Intergovernmental $ - ($11,585) $214,020 $ - $202,435 $31,123 Special assessments - - 31,125 - 31,125 261,452 Investment income - 4,025 1,830 - 5,855 9,763 Refunds and reimbursement - - 1,094,828 - 1,094,828 70,007 Total revenues 0 (7,560) 1,341,803 0 1,334,243 372,345 Expenditures: Debt service: Issuance costs - - 79,844 - 79,844 58,053 Construction/acquisition costs 285 118,866 2,527,296 158,504 2,804,951 3,130,132 Total expenditures 285 118,866 2,607,140 158,504 2,884,795 3,188,185 Revenues over (under) expenditures (285) (126,426) (1,265,337) (158,504) (1,550,552) (2,815,840) Other financing sources (uses): Bonds issued - - 2,879,262 - 2,879,262 2,536,018 Premium on debt issued - - 69,485 - 69,485 78,034 Transfers in - - - - - 100,000 Transfers out - - - - - (191,319) Total other financing sources (uses)0 0 2,948,747 0 2,948,747 2,522,733 Net change in fund balance (285) (126,426) 1,683,410 (158,504) 1,398,195 (293,107) Fund balance (deficit) - January 1 2,452 275,475 (550,362) - (272,435) 20,672 Fund balance (deficit) - December 31 $2,167 $149,049 $1,133,048 ($158,504) $1,125,760 ($272,435) Total Street Improvement Project Fund 145 CITY OF ST. ANTHONY, MINNESOTA SCHEDULE OF REVENUES, EXPENSES AND CHANGES Exhibit 9 IN FUND NET POSITION WATER/SEWER/WATER PLANT ENTERPRISE FUND For The Year Ended December 31, 2016 With Comparative Totals For The Year Ended December 31, 2015 Water Sewer 2016 2015 Operating revenues: Charges for services $917,927 $1,005,329 $1,923,256 $1,844,850 Connection charges 7,650 7,650 15,300 9,130 Total operating revenues 925,577 1,012,979 1,938,556 1,853,980 Operating expenses: Personal services 514,680 298,247 812,927 785,143 Supplies 65,393 9,349 74,742 65,062 Contracted services and other 80,339 18,527 98,866 156,947 Treatment charges (MCES) - 576,237 576,237 593,381 Other 127,257 28,389 155,646 168,714 Depreciation 246,037 86,362 332,399 308,359 Total operating expenses 1,033,706 1,017,111 2,050,817 2,077,606 Operating income (loss)($108,129)($4,132) (112,261) (223,626) Nonoperating revenues (expenses): Investment income 23,907 82,393 Interest expense (17,688)(19,984) Fees and cost of issuance (1,292)(742) Refunds and reimbursements 50 45,655 Army settlement 130,932 - Gain on sale of assets 1,350 - Miscellaneous income 8,750 16,391 Total nonoperating revenues (expenses)146,009 123,713 Income (loss) before capital contributions and transfers 33,748 (99,913) Capital contributions and transfers: Capital contributions 819,779 677,200 Transfers out (2,711,836) (185,564) Total capital contributions and transfers (1,892,057) 491,636 Change in net position (1,858,309) 391,723 Net position - January 1 9,884,913 9,493,190 Net position - December 31 $8,026,604 $9,884,913 Operations Totals 146 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. 148-157 Revenue Capacity These tables contain information to help the reader assess the City’s most significant local revenue source, the property tax. 158-161 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. 162-171 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. 172-173 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. 174-179 Sources: Unless otherwise noted, the information in these tables is derived from the comprehensive financial reports for the relevant year. 147 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 148 Table 1 2010 2011 2012 2013 2014 2015 2016 $14,098,233 $15,334,754 $15,182,974 $16,217,013 $14,953,582 $10,604,121 $10,024,670 4,372,871 4,263,706 4,741,115 3,347,895 5,717,140 6,147,172 6,282,913 - - - - - 12,411 - 34,320 16,281 21,521 21,528 23,471 19,283 25,634 (1,339,821) (6,358,682) (5,566,910) (5,239,277) (9,513,189) (10,391,885) 1,886,115 $17,165,603 $13,256,059 $14,378,700 $14,347,159 $11,181,004 $6,391,102 $18,219,332 $4,915,905 $4,767,233 $4,523,383 $5,605,845 $6,036,192 $12,143,158 $14,011,168 120,000 - - - - - - 615,994 5,642,649 5,814,241 5,965,067 5,570,360 5,649,685 3,171,781 $5,651,899 $10,409,882 $10,337,624 $11,570,912 $11,606,552 $17,792,843 $17,182,949 $19,014,138 $20,101,987 $19,706,357 $21,822,858 $20,989,774 $22,747,279 $24,035,838 4,492,871 4,263,706 4,741,115 3,347,895 5,717,140 6,147,172 6,282,913 - - - - - 12,411 - 34,320 16,281 21,521 21,528 23,471 19,283 25,634 (723,827) (716,033) 247,331 725,790 (3,942,829) (4,742,200) 5,057,896 $22,817,502 $23,665,941 $24,716,324 $25,918,071 $22,787,556 $24,183,945 $35,402,281 Fiscal Year 149 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2006 2007 2008 2009 Expenses Governmental activities: General government $1,115,231 $1,111,240 $1,231,302 $1,160,932 Public safety 2,461,222 2,359,360 2,656,975 2,937,528 Public works 1,400,951 6,266,350 1,436,309 1,839,163 Parks and recreation 806,512 450,549 416,881 424,590 Services to other cities 649,625 911,419 940,807 1,026,842 Housing and redevelopment 2,967,835 173,098 536,068 2,534,700 Interest on long-term debt 1,096,390 1,411,926 1,497,107 1,407,527 Total governmental activities expenses 10,497,766 12,683,942 8,715,449 11,331,282 Business-type activities: Liquor 5,429,222 5,740,169 5,969,076 6,156,097 Water 899,686 775,828 794,433 843,723 Water Filtration and Purification - - - - Sewer 736,967 785,491 860,918 932,979 Stormwater - - - - Total business-type activities expenses 7,065,875 7,301,488 7,624,427 7,932,799 Total primary government expenses $17,563,641 $19,985,430 $16,339,876 $19,264,081 Program revenues Governmental activities: Charges for services: Services to other cities $747,675 $1,039,000 $1,096,200 $1,156,500 Other activities 999,142 876,425 841,448 972,456 Operating grants and contributions 684,819 609,886 522,542 456,357 Capital grants and contributions 974,678 755,930 1,684,417 1,659,382 Total governmental activities program revenues 3,406,314 3,281,241 4,144,607 4,244,695 Business-type activities: Charges for services: Liquor 5,814,838 6,187,185 6,359,731 6,611,975 Water 778,979 841,611 812,371 806,987 Water filtration and purification - - - - Sewer 776,886 850,260 803,350 776,330 Stormwater - - - - 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 Total primary government program revenues $10,777,017 $11,160,297 $12,120,059 $12,439,987 Fiscal Year 150 Table 2 Page 1 of 2 2010 2011 (1)2012 2013 (2)2014 2015 2016 $1,310,199 $1,052,821 $1,307,007 $1,029,147 $1,116,100 $1,342,360 $1,319,451 2,898,043 2,971,316 2,971,275 4,488,023 4,644,185 4,757,637 7,053,595 1,841,083 1,834,066 2,671,918 2,565,860 2,711,291 2,741,411 4,134,783 440,858 457,822 377,689 569,254 608,966 592,892 472,436 1,016,479 1,039,009 1,039,504 - - - - 654,145 671,934 649,104 565,303 575,738 596,444 793,834 1,290,844 1,302,681 1,197,073 1,217,646 1,044,635 845,856 794,584 9,451,651 9,329,649 10,213,570 10,435,233 10,700,915 10,876,600 14,568,683 6,360,985 6,537,271 6,618,975 6,479,809 5,879,240 5,728,876 5,676,892 826,352 874,099 901,732 859,112 845,396 869,446 1,083,240 - 132,981 114,337 124,505 239,074 185,964 - 956,635 944,097 1,041,085 1,019,421 1,069,876 1,051,261 1,048,937 - - - - - - 191,655 8,143,972 8,488,448 8,676,129 8,482,847 8,033,586 7,835,547 8,000,724 $17,595,623 $17,818,097 $18,889,699 $18,918,080 $18,734,501 $18,712,147 $22,569,407 $1,157,190 $1,180,334 $1,192,138 $ - $ - $ - $ - 817,062 803,397 1,067,084 2,506,369 2,374,306 2,414,912 2,212,526 475,411 454,841 447,554 585,950 499,538 499,126 10,969,360 992,511 839,137 1,566,565 780,072 1,070,975 1,367,745 1,643,911 3,442,174 3,277,709 4,273,341 3,872,391 3,944,819 4,281,783 14,825,797 6,826,901 6,995,923 7,139,381 6,908,143 6,078,039 5,893,916 5,822,783 785,642 798,240 957,824 933,051 879,007 900,412 925,577 - - - - - 45,655 - 789,872 779,513 877,794 947,632 921,242 953,568 1,012,979 - - - - - - 192,748 - - - - - - 130,932 - - - - - - 1,166,747 8,402,415 8,573,676 8,974,999 8,788,826 7,878,288 7,793,551 9,251,766 $11,844,589 $11,851,385 $13,248,340 $12,661,217 $11,823,107 $12,075,334 $24,077,563 Fiscal Year 151 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2006 2007 2008 2009 Net (expense) revenue: Governmental activities ($7,091,452) ($9,402,701) ($4,570,842) ($7,086,587) Business-type activities 304,828 577,568 351,025 262,493 Total primary government net (expense) revenue (6,786,624) (8,825,133) (4,219,817) (6,824,094) 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 Tax increment collections 851,309 1,477,929 1,753,559 1,952,704 Grants and contributions 94,470 159,741 88,291 20,918 Unrestricted investment earnings 514,440 698,345 403,426 208,761 Other 96,837 77,745 36,365 16,103 Gain on sale of capital assets 8,730 - - 3,981 Transfers 485,000 580,356 (1,514,827) 319,871 Total governmental activities 5,719,289 6,962,552 4,885,179 6,965,046 Business-type activities: Unrestricted investment earnings 78,638 74,764 18,985 6,833 Other 12,490 18,303 17,089 10,353 Transfers (485,000) (580,356) 1,514,827 (319,871) Total business-type activities (393,872) (487,289) 1,550,901 (302,685) Total primary government $5,325,417 $6,475,263 $6,436,080 $6,662,361 Change in net position: Governmental activities ($1,372,163) ($2,440,149) $314,337 ($121,541) Business-type activities (89,044) 90,279 1,901,926 (40,192) Total primary government ($1,461,207) ($2,349,870) $2,216,263 ($161,733) (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. Note: The City closed the Water Filtration and Purification Fund during 2016 and transferred the majority of the net position to governmental activities. Fiscal Year 152 Table 2 Page 2 of 2 2010 2011 2012 2013 2014 2015 2016 ($6,009,477) ($6,051,940) ($5,940,229) ($6,562,842) ($6,756,096) ($6,594,817) $257,114 258,443 85,228 298,870 305,979 (155,298) (41,996) 1,251,042 (5,751,034) (5,966,712) (5,641,359) (6,256,863) (6,911,394) (6,636,813) 1,508,156 $4,750,440 $4,872,840 $5,408,188 $5,703,707 $6,030,558 $5,893,900 $6,160,156 1,807,388 1,746,766 1,335,674 1,405,872 1,131,896 1,121,627 1,455,090 22,827 24,673 10,639 26,384 461,964 516,015 530,110 224,693 6,803 55,206 25,914 189,441 146,023 254,396 61,866 148,500 208,525 389,785 104,113 172,913 1,207,375 - - 46,195 - 33,204 7,653 7,151 478,000 595,200 610,000 (809,238) (17,982) (6,053,216) 1,956,838 7,345,214 7,394,782 7,674,427 6,742,424 7,933,194 1,804,915 11,571,116 (336) 52,659 122,833 51,593 111,512 86,407 31,097 3,454 3,976 17,569 66,478 61,444 88,664 64,805 (478,000) (595,200) (610,000) 809,238 17,982 6,053,216 (1,956,838) (474,882) (538,565) (469,598) 927,309 190,938 6,228,287 (1,860,936) $6,870,332 $6,856,217 $7,204,829 $7,669,733 $8,124,132 $8,033,202 $9,710,180 $1,335,737 $1,342,842 $1,734,198 $179,582 $1,177,098 ($4,789,902) $11,828,230 (216,439) (453,337) (170,728) 1,233,288 35,640 6,186,291 (609,894) $1,119,298 $889,505 $1,563,470 $1,412,870 $1,212,738 $1,396,389 $11,218,336 Fiscal Year 153 CITY OF ST. ANTHONY, MINNESOTA FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2006 2007 2008 2009 General Fund: Reserved $44,852 $46,543 $51,205 $53,849 Unreserved 1,237,373 1,391,816 1,389,299 1,471,584 Nonspendable - - - - Unassigned - - - - Total general fund $1,282,225 $1,438,359 $1,440,504 $1,525,433 All other governmental funds: Reserved $5,564,131 $4,116,654 $3,595,470 $6,264,349 Unreserved, reported in: Special revenue funds 5,335,977 5,650,265 5,576,157 5,329,291 Capital projects funds 1,500,372 695,197 967,355 314,789 Nonspendable - - - - Restricted - - - - Committed - - - - Assigned - - - - Unassigned - - - - Total all other governmental funds $12,400,480 $10,462,116 $10,138,982 $11,908,429 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 154 Table 3 2010 2011 2012 2013 2014 2015 2016 $57,430 $ - $ - $ - $ - $ - $ - 1,567,270 - - - - - - - 55,271 68,481 74,049 91,136 107,412 115,482 - 1,647,566 1,906,856 2,074,490 2,384,345 2,338,600 2,204,185 $1,624,700 $1,702,837 $1,975,337 $2,148,539 $2,475,481 $2,446,012 $2,319,667 $4,625,111 $ - $ - $ - $ - $ - $ - 5,212,683 - - - - - - 243,408 - - - - - - - 132 129 49 1,631 2,157 57,188 - 6,868,120 8,594,337 2,002,737 7,627,714 6,491,789 6,907,253 - 210,953 222,184 33,015 78,180 94,107 105,503 - 763,667 1,344,529 1,253,470 1,318,583 578,258 13,148,229 - (1,240,578) (1,473,482) (175,561) (2,407,745) (2,062,163) (1,693,729) $10,081,202 $6,602,294 $8,687,697 $3,113,710 $6,618,363 $5,104,148 $18,524,444 Fiscal Year 155 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2006 2007 2008 2009 2010 Revenues: General property taxes $3,649,764 $3,957,749 $4,097,493 $4,407,221 $4,787,076 Tax increment collections 851,309 1,469,532 1,682,549 1,903,840 1,911,678 Licenses, fees and permits 244,170 213,842 247,878 358,381 224,096 Intergovernmental 954,911 706,080 2,039,592 1,430,366 1,239,053 Special assessments 589,812 441,327 385,197 506,262 398,895 Charges for services 1,113,298 1,403,419 1,451,925 1,519,427 1,528,210 Cable franchise fees 70,737 85,162 92,606 92,309 92,786 Fines and forfeits 135,960 164,788 139,421 122,870 128,165 Investment income 507,615 689,428 400,038 184,053 224,598 Contributions and donations 6,300 37,100 3,950 3,450 2,834 Miscellaneous 511,851 404,611 186,449 53,354 708,181 Total revenues 8,635,727 9,573,038 10,727,098 10,581,533 11,245,572 Expenditures: Current: General government 952,291 945,295 1,076,699 1,017,405 1,170,630 Public safety 2,255,783 2,165,891 2,446,434 2,654,708 2,615,752 Public works 759,254 809,751 679,269 761,530 726,064 Parks and recreation 783,791 428,341 394,673 401,787 388,808 Services to other cities 649,625 911,419 940,807 1,026,842 1,016,479 Nondepartmental 1,501 48,735 23,387 6,798 6,940 Housing and redevelopment 439,422 173,098 212,583 191,608 183,513 Capital outlay: General government 6,389 125 - - - Public safety 229,174 12,993 - - 67,850 Public works 21,056 316,264 318,668 271,459 212,029 Parks and recreation 19,712 - - - - Debt service: Principal retirement 4,765,000 2,195,000 2,305,000 1,970,000 4,255,000 Interest 1,022,069 1,313,578 1,450,248 1,369,280 1,392,608 Paying agent fees 9,373 11,501 10,601 9,519 8,763 Professional service 9,140 1,901 5,080 5,077 3,117 Issuance costs - 208,545 - 49,420 - Construction/acquisition costs 2,108,395 5,366,376 3,419,607 4,789,180 2,420,767 Developer incentives 2,769,938 3,592,385 323,485 443,092 470,632 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 Revenues over (under) expenditures (8,202,766) (8,928,160) (2,879,443) (4,386,172) (3,693,380) Other financing sources (uses): Bonds issued 8,165,000 6,690,000 1,910,000 3,965,000 1,375,000 Refunding bonds issued - - - 2,855,000 - Redemption of refunded bonds - - - (1,210,000) - Payment to refunded bond escrow agent - - - - - Premium on debt issued 30,669 - 8,749 140,492 402 Discount on debt issued (3,069) (213) - - - Sale of capital assets 18,855 8,744 14,705 12,056 15,347 Transfers in 1,775,848 4,275,129 1,832,828 1,307,574 3,634,584 Transfers out (1,290,848) (3,827,825) (1,207,828) (829,574) (3,156,584) Total other financing sources(uses) 8,696,455 7,145,835 2,558,454 6,240,548 1,868,749 Net change in fund balance $493,689 ($1,782,325) ($320,989) $1,854,376 ($1,824,631) Debt service as a percentage of noncapital expenditures 40.0% 27.4% 38.1% 33.7% 46.1% Debt service as percentage of total expenditures 34.4% 19.0% 27.6% 22.3% 37.8% (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 156 Table 4 2011 (1)2012 2013 (2)2014 2015 2016 $4,877,268 $5,416,328 $5,657,416 $6,053,119 $5,897,070 $6,161,036 1,708,873 1,364,881 1,398,000 1,117,824 1,106,582 1,476,275 195,563 290,985 342,390 351,102 296,465 304,079 861,744 1,530,983 792,477 1,464,479 1,644,481 2,283,016 517,678 427,467 587,191 491,988 621,931 570,549 1,573,975 1,736,274 1,932,268 1,787,611 1,879,520 1,701,246 96,608 101,403 104,089 109,009 108,104 113,672 117,835 130,560 129,363 126,584 130,823 93,529 6,792 55,201 24,197 189,216 145,447 252,830 610 2,778 16,134 45,640 15,903 4,120 148,500 194,052 375,719 104,113 172,913 11,637,694 10,105,446 11,250,912 11,359,244 11,840,685 12,019,239 24,598,046 883,478 1,059,361 836,190 926,501 948,089 1,066,236 2,700,328 2,671,890 4,174,754 4,357,563 4,352,048 5,164,270 684,761 818,851 1,042,876 1,001,378 1,043,791 2,380,556 366,153 344,702 420,826 463,057 446,684 409,979 1,039,009 1,039,504 - - - - 22,283 160,513 56,117 59,265 40,139 38,421 227,921 240,097 150,070 143,863 119,294 156,312 12,661 46,588 8,157 38,826 168,176 8,201 152,405 130,000 5,792 283,189 150,645 256,053 112,158 170,056 270,443 53,143 67,831 134,590 - - - 49,464 - - 3,120,000 4,255,000 4,245,000 7,785,000 3,750,000 2,620,000 1,271,549 1,299,266 1,308,344 1,139,216 1,020,262 820,607 11,582 18,811 16,387 7,853 10,386 14,793 30,109 3,480 6,682 17,104 16,971 8,901 67,278 132,217 66,035 185,800 142,682 80,294 1,953,923 2,253,448 1,618,986 2,959,264 3,750,269 3,546,499 444,013 409,007 415,233 431,875 475,886 627,639 - - - - - - 13,099,611 15,052,791 14,641,892 19,902,361 16,503,153 17,333,351 (2,994,165)(3,801,879)(3,282,648)(8,061,676)(4,483,914)7,264,695 1,940,000 2,195,000 1,775,000 2,070,000 2,580,000 2,900,000 3,225,000 7,300,000 - 4,970,000 4,310,000 - (1,030,000) - - - - - - (4,015,373) - - (4,332,935) - 105,598 190,221 42,080 158,044 188,693 69,485 - - - - - - 9,982 10,962 25,244 13,390 25,860 15,186 1,603,430 1,626,372 2,021,913 1,908,166 2,069,259 4,003,953 (1,008,230)(1,016,372)(1,482,913)(1,514,667)(1,900,647)(959,368) 4,845,780 6,290,810 2,381,324 7,604,933 2,940,230 6,029,256 $1,851,615 $2,488,931 ($901,324)($456,743)($1,543,684)$13,293,951 40.4%44.6%43.6%54.2%36.5%25.7% 33.5%36.9%37.9%44.8%28.9%19.8% Fiscal Year 157 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 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 46.90% 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% 2016 7,352,669 2,105,556 94,478 9,552,703 (695,828) 8,856,875 67.64% 860,925,700 1.11% Source: Official Statements for the City of St. Anthony. (Hennepin and Ramsey Counties Combined) * Includes tax increment tax capacity and net fiscal disparities impact. 158 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 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% 2016 67.64%33.13%11.63%45.36%157.76% 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* 159 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 $662,312 1 6.93% $852,478 1 9.31% St. Anthony Leased Housing Assoc. 383,167 2 4.01% 396,250 2 4.33% Autumn Woods Partners LP/215,713 3 2.26% 205,800 3 2.25% Autumn Woods II LLC Equinox Properties LLC 189,060 4 1.98% 205,485 4 2.24% St. Anthony Shopping Center 128,730 5 1.35% 98,252 7 1.07% Autumn Woods III LLC 98,988 6 1.04% - - 0.00% Chandler Place LP 93,750 7 0.98% 82,329 10 0.90% Carvelle Apartments (Mortenson)82,706 8 0.87% 82,808 9 0.90% St. Anthony Nursing Home LP 78,289 9 0.82% - - 0.00% Xcel Energy 64,068 10 0.67% 84,058 8 0.92% Northern Gopher Enterprises, Inc. - - 0.00% 107,360 6 1.17% Silver Lake Homes I LLC - - 0.00% 125,960 5 1.38% Total $1,996,783 20.91% $2,240,780 24.47% Total All Property $9,552,703 $9,160,060 20072016 160 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 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%56,690 4,622,852 99.59% 2011 4,761,665 (1)4,710,258 98.92%40,250 4,750,508 99.77% 2012 5,223,089 5,157,341 98.74%34,832 5,192,173 99.41% 2013 5,426,789 5,345,759 98.51%35,263 5,381,022 99.16% 2014 5,633,007 5,564,141 98.78%(5,805) 5,558,336 98.67% 2015 5,831,737 5,726,236 98.19%14,242 5,740,479 98.44% 2016 6,050,812 5,974,249 98.73% (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 161 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 Fiscal Improvement and Reconstruction Increment Revenue Revenue G.O. Fannie Governmental Year Refunding Bonds Bonds Bonds Bonds Bonds Bonds Mae Loan Activities 2007 $12,675,000 $ - $10,605,000 $4,955,000 $1,055,000 $1,055,000 $2,500,000 $32,845,000 2008 11,105,000 1,910,000 10,375,000 4,755,000 945,000 860,000 2,500,000 32,450,000 2009 14,310,000 1,910,000 10,055,000 4,550,000 825,000 2,390,000 2,050,000 36,090,000 2010 13,450,000 1,810,000 9,710,000 4,335,000 695,000 1,960,000 1,250,000 33,210,000 2011 16,645,000 1,710,000 9,345,000 4,110,000 565,000 1,850,000 - 34,225,000 2012 18,935,000 1,605,000 8,960,000 3,995,000 430,000 1,665,000 - 35,590,000 2013 17,605,000 1,500,000 8,545,000 3,700,000 295,000 1,475,000 - 33,120,000 2014 16,910,000 2,695,000 7,920,000 3,415,000 150,000 1,285,000 - 32,375,000 2015 18,010,000 1,305,000 7,865,000 3,125,000 - 1,090,000 - 31,395,000 2016 19,280,000 1,170,000 7,450,000 2,825,000 - 950,000 - 31,675,000 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Source: St. Anthony Finance Department *See Table 13 for Population data. Governmental Activities 162 Table 9 Water/ Sewer Percentage Water/ Liquor Total Bonds Total Percentage of Adjusted Sewer Revenue Business-Type Per Primary of Personal Per Tax Capacity Bonds Bonds Activities Customer Government Income Capita* 384.42% $1,975,000 $350,000 $2,325,000 $859 $35,170,000 Not Available 3,864 359.39% 1,895,000 270,000 2,165,000 824 34,615,000 3,846 414.86% 1,815,000 185,000 2,000,000 789 38,090,000 12.20% 4,239 400.33% 1,730,000 95,000 1,825,000 752 35,035,000 11.75% 4,037 451.61% 1,640,000 - 1,640,000 713 35,865,000 11.03% 4,107 460.60% 1,545,000 - 1,545,000 672 37,135,000 11.07% 4,228 454.86% 1,440,000 - 1,440,000 626 34,560,000 10.14% 3,889 442.09% 1,330,000 - 1,330,000 578 33,705,000 10.05% 3,760 428.71% 1,215,000 - 1,215,000 528 32,610,000 9.41% 3,515 432.53% 1,100,000 - 1,100,000 478 32,775,000 Not Available Business-Type Activities 163 - This page intentionally left blank - 164 CITY OF ST. ANTHONY, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 10 As of December 31, 2016 Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicable* Debt Debt repaid with property taxes: (1) School Districts: ISD No. 282 $19,640,000 53.8576% $10,577,631 Counties: Hennepin 720,595,000 0.3878% 2,794,219 Ramsey 182,245,000 0.3023% 550,873 Other: Metropolitan Council 153,680,000 0.1788% 274,742 Three Rivers Park District 59,300,000 0.5414% 321,023 Subtotal - overlapping debt 14,518,488 City direct debt (2)31,675,000 Total direct and overlapping debt $46,193,488 Sources: (1) Official Statements for City of St. Anthony (2) St. Anthony Finance Department Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. *For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value. 165 CITY OF ST. ANTHONY, MINNESOTA LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years Market value Debt limit (3% of market value) Debt applicable to limit: General obligation bonds Less: Amount set aside for repayment of general obligation debt Total net debt applicable to limit Legal debt margin 2007*2008 2009 Debt limit 17,870,856$ 26,094,699$ 24,778,098$ Total net debt applicable to limit 4,099,637 5,741,849 5,410,204 Legal debt margin 13,771,219$ 20,352,850$ 19,367,894$ Total net debt applicable to the limit as a percentage of debt limit 22.94%22.00%21.83% 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 2016 166 Table 11 $821,707,237 24,651,217 3,995,000 (818,202) 3,176,798 $21,474,419 2010 2011 2012 2013 2014 2015 2016 23,262,423$ 22,184,277$ 21,518,115$ 20,237,210$ 20,226,682$ 21,500,127$ 24,651,217$ 5,059,006 4,708,301 4,902,237 4,450,131 4,031,063 3,615,981 3,176,798 18,203,417$ 17,475,976$ 16,615,878$ 15,787,079$ 16,195,619$ 17,884,147$ 21,474,419$ 21.75% 21.22% 22.78% 21.99% 19.93% 16.82% 12.89% Legal Debt Margin Calculation for Fiscal Year 2016 167 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 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% 2016 - - - - - - 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 168 Table 12 Page 1 of 2 Utility Less Net Service Operating Available Charges Expenses Revenue Principal Interest Coverage $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% 1,938,556 1,718,418 220,138 115,000 23,150 159% Water and Sewer Revenue Bonds Debt Service 169 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 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 1,098,109 275,364 - - N/A 2015 1,321,028 1,071,756 249,272 - - N/A 2016 1,354,717 1,082,308 272,409 - - 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. Liquor Revenue Bonds Debt Service 170 Table 12 Page 2 of 2 Special Tax Assessment Increment Collections Principal Interest Coverage Collections Principal Interest Coverage $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% 1,106,582 4,365,000 336,268 24% 570,549 2,070,000 540,465 22% 1,476,275 415,000 156,058 259% Debt Service Tax Increment BondsImprovement Bonds Debt Service 171 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) 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 9,277 333,684,413 35,969 3.30% 2016 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 172 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) 396 1 255 2 St. Anthony Health Center/Chandler Place 270 2 267 1 Cub Foods 250 3 185 4 City of St. Anthony 132 4 131 5 I Care Cab 120 5 - - B&F Fastener Supply 100 6 - - St. Charles Borromeo Parish 92 7 65 7 North Memoral - Silver Lake Clinic 81 8 - - Marshall Manufacturing 60 9 - - Happy's Potato Chip Company 50 10 55 8 Wal-Mart - - 245 3 Francis A. Gross Golf Course - - 50 9 Industrial Custom Products - - 100 6 Applebee's - - 40 10 Total 1,551 1,393 20072016 173 CITY OF ST. ANTHONY, MINNESOTA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2007 2008 2009 2010 General government: Administration 3.00 3.00 3.00 3.00 Finance 4.50 4.75 4.75 4.75 Police: Officers 22.00 23.00 23.00 23.00 Support staff 2.00 2.50 2.50 2.50 Community service officer 1.00 1.00 1.00 1.00 Volunteers (non-paid)12.00 12.00 12.00 12.00 Fire: Firefighters 7.00 7.00 7.00 7.00 Volunteers (paid on call)3.00 3.00 3.00 3.00 Public works: Administration 2.00 2.00 2.00 2.00 Street 6.00 6.00 6.00 6.00 Park 3.00 3.00 3.00 3.00 Water/Sewer 2.00 2.00 2.00 2.00 Mechanic 1.00 1.00 1.00 1.00 Seasonal*2.25 2.00 2.00 2.00 Liquor operations: Off-sale: Full-time 5.00 5.00 5.00 5.00 Market Place - part-time 5.25 5.25 5.25 6.00 Silver Lake Village - part-time 5.25 5.25 5.25 6.00 Total 86.25 87.75 87.75 89.25 Source: City of St. Anthony Full-Time Equivalent Employees as of December 31, 174 Table 15 2011 2012 2013 2014 2015 2016 3.00 2.00 2.00 2.00 2.00 2.50 4.50 4.25 4.25 4.25 4.50 4.00 23.00 23.00 23.00 23.00 23.00 23.00 2.50 2.50 2.50 2.50 2.50 2.50 1.00 1.00 1.00 1.00 1.00 1.00 12.00 12.00 12.00 12.00 12.00 12.00 7.00 7.00 7.00 7.00 7.00 7.00 3.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00 5.00 6.00 6.00 6.00 6.00 6.00 3.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.00 5.00 5.00 5.00 5.00 5.00 5.00 6.00 6.00 6.00 6.00 4.50 4.50 6.00 6.00 6.00 6.00 4.50 4.00 88.00 87.75 87.75 87.75 85.00 84.50 Full-Time Equivalent Employees as of December 31, 175 CITY OF ST. ANTHONY, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2007 2008 2009 2010 Police: * Moving violation 2,357 2,137 2,008 2,305 Non-moving violations 627 494 351 397 DWI 26 61 59 49 Traffic arrests 831 815 770 600 Gross and misdemeanor arrests 158 203 193 129 Felony arrests 45 44 32 29 Warrant arrests 29 32 32 28 Fire: Emergency responses 976 1,055 996 1,203 Medical responses 696 768 718 895 Fires 40 39 32 34 Inspections 78 81 92 97 Building inspection: Permits issued 255 262 283 315 Other public works: Street reconstruction/resurfacing (miles)2 2 1 1 Potholes filled (tons)35 20 80 22 Water: New connections 16 10 - 7 Water mains breaks 32 8 9 11 Average daily consumption (thousands of gallons)990 902 885 806 Peak daily consumption (thousands of gallons)2,500 2,157 2,295 1,396 * Police statistics are for St Anthony only Source: City of St. Anthony Fiscal Year 176 Table 16 2011 2012 2013 2014 2015 2016 1,848 1,851 2,068 2,017 2,213 1,488 210 200 396 321 197 192 44 39 34 39 23 15 673 578 679 633 661 469 145 164 244 130 77 50 46 37 67 53 44 51 28 20 23 25 24 13 1,221 1,267 1,409 1,363 1,425 1,534 894 933 1,016 1,012 1,062 1,113 35 40 26 26 26 14 121 116 88 256 238 173 336 272 303 288 533 342 211121 100 84 39 34 66 23 1 39 122 28 7 1 10107882 821 884 822 763 770 715 1,586 1,879 1,724 1,635 1,571 1,153 Fiscal Year 177 CITY OF ST. ANTHONY, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2007 2008 2009 2010 Police: Stations 1 1 1 1 Fleet units 12 12 12 13 Fire stations:1 1 1 1 Fleet units 7 7 8 8 Other public works: City streets (miles)24.7 24.7 24.7 24.7 Sidewalks (miles)9.6 9.6 10.2 11.1 Parks and recreation: Acreage 40 40 40 40 Playgrounds 4 4 4 4 Baseball/softball diamonds 7 7 7 7 Soccer/football fields 2 2 2 2 Community centers 1 1 1 1 Skate park 1 1 1 1 Splash pads 1 1 2 2 Tennis courts 2 2 2 2 Seasonal ice rinks 3 3 3 3 Liquor operations: On/off sale locations 2 2 2 2 Water: Water mains (miles)24.7 24.7 24.7 24.7 Fire hydrants 287 287 287 287 Storage capacity (thousands of gallons)2,250 2,250 2,250 2,250 Wells 3 3 3 3 Wastewater: Sanitary sewers (miles)24.7 24.7 24.7 24.7 Lift stations 2 2 2 2 Stormwater: Stormwater reuse 0 0 1 1 Stormwater treatment systems 0 0 0 0 Stormwater retention ponds 5 5 5 5 Storm sewers (miles)15.0 15.0 15.0 15.0 Source: City of St. Anthony Fiscal Year 178 Table 17 2011 2012 2013 2014 2015 2016 111111 13 14 14 14 14 14 111111 888888 24.7 24.7 24.7 24.7 24.7 24.7 11.1 11.1 11.1 11.1 11.1 11.6 40 40 40 40 40 40 444444 777777 222222 111111 111111 222222 222222 333333 222222 24.7 24.7 24.7 24.7 24.7 24.7 287 287 287 287 287 288 2,250 2,250 2,250 2,250 2,250 2,250 333333 24.7 24.7 24.7 24.7 24.7 24.7 222222 111111 001122 555666 15.0 15.0 15.0 15.0 15.0 15.0 Fiscal Year 179 - This page intentionally left blank - 180